8090 CONGRESSIONAL RECORD—SENATE, Vol. 154, Pt. 6 May 8, 2008 SENATE—Thursday, May 8, 2008

The Senate met at 9:30 a.m. and was Mr. PRYOR thereupon assumed the Mr. DURBIN. I object to any further called to order by the Honorable MARK chair as Acting President pro tempore. proceedings with respect to the bill. L. PRYOR, a Senator from the State of f The ACTING PRESIDENT pro tem- Arkansas. pore. Objection having been heard, the RESERVATION OF LEADER TIME bill will be placed on the calendar. PRAYER The ACTING PRESIDENT pro tem- f The PRESIDING OFFICER. Today’s pore. Under the previous order, the RECOGNITION OF THE MINORITY opening prayer will be offered by guest leadership time is reserved. LEADER Chaplain Rev. Brian Severin from Vic- f tory Christian Fellowship in Greeley, The ACTING PRESIDENT pro tem- CO. RECOGNITION OF THE ACTING pore. The Minority leader is recog- The guest Chaplain offered the fol- MAJORITY LEADER nized. lowing prayer: The ACTING PRESIDENT pro tem- f May we all join our hearts in prayer. pore. The acting majority leader is rec- DEMOCRATIC ENERGY PACKAGE Almighty Father, God of all creation, ognized. in the Name of our Lord Jesus, the au- Mr. MCCONNELL. Mr. President, thor of salvation, I pray for each one of f reading the morning papers, we learned a couple of key points about the energy our Senators standing in this legisla- SCHEDULE tive gate, 100 of our Nation’s best, in proposal introduced yesterday by our Mr. DURBIN. Mr. President, today friends on the other side. The most im- whose grasp is the throat of our fate. there will be a period of morning busi- Give each of them Your wisdom amidst portant point is that two central provi- ness for up to 1 hour, with the time sions of the bill are opposed by two of the confusion of our day. Help them equally divided and controlled between embrace Superman’s motto, bringing their own chairmen. In this morning’s the two leaders or their designees. The Albuquerque Journal, we learned that Truth and Justice, the American way. Republicans will control the first half Protect their marriages and families, the Democratic chairman of the Senate and the majority will control the final Energy Committee does not like the who are invaluable to each Senator’s half. heart, and enlighten their children’s so-called windfall profit tax. He called generation with a genius redefining the ORDER OF PROCEDURE it ‘‘arbitrary.’’ term ‘‘smart.’’ May a tidal wave of I ask unanimous consent to amend Now, we know this is a bad idea that unity erase the line drawn in the sand. this consent to note that Senator AL- does not work. The last time a windfall May our Senators lift their voices as LARD wishes to say a word about the profits tax was tried in the 1980s, it re- one, again declaring ‘‘United We gentleman who just served as our duced domestic production and actu- Stand.’’ Chaplain. I ask that his time not be de- ally increased our reliance on foreign Help us, the people, support our Sen- ducted from the minority time in oil, just the opposite of a rational pol- ators, help them ignore our selfish morning business. icy to reduce gas prices to make Amer- whine. May each of them fulfill their The ACTING PRESIDENT pro tem- ica more energy independent. calling, guiding us through the storms pore. Without objection, it is so or- In the Wall Street Journal, we of perilous times. dered. learned that the senior Senator from Amen. Mr. DURBIN. Following morning New York, the chairman of the Joint business, the Senate will resume con- Economic Committee, is raising the f sideration of S. 2284, a bill to restore alarm about another central tenet of PLEDGE OF ALLEGIANCE the financial solvency of the National the Democratic energy proposal, the The Honorable MARK L. PRYOR led Flood Insurance Fund. energy futures trading provision. The the Pledge of Allegiance, as follows: As a reminder, all amendments to Journal reports the chairman is saying I pledge allegiance to the Flag of the the flood insurance bill must be offered the energy futures trading provisions, United States of America, and to the Repub- today. Senators should expect rollcall as written, would send the bulk of the lic for which it stands, one nation under God, votes to occur throughout the day as trading that is now done in America, indivisible, with liberty and justice for all. we work to complete action on the bill. and thus American jobs, to markets f I ask everyone to focus on the amend- overseas. ments and showing up in a timely fash- I agree with both of these chairmen. APPOINTMENT OF ACTING ion. We want to complete this as quick- Two years have passed since Congres- PRESIDENT PRO TEMPORE ly as we can. sional Democrats said they had a The PRESIDING OFFICER. The f ‘‘commonsense plan’’ to address high clerk will please read a communication gas prices. This week Senate Demo- to the Senate from the President pro MEASURE PLACED ON THE crats finally unveiled that plan, and tempore (Mr. BYRD). CALENDAR—S. 2991 their own chairmen do not seem to like The legislative clerk read the fol- Mr. DURBIN. Mr. President, I under- parts of it. It is predictably high on lowing letter: stand that S. 2991 is at the desk and taxes, more bureaucracy, and contin- U.S. SENATE, due for a second reading. ued dependence on OPEC. PRESIDENT PRO TEMPORE, The ACTING PRESIDENT pro tem- Their proposal would do nothing to Washington, DC, May 8, 2008. pore. The Senator is correct. lower the price of gas. It will only To the Senate: The clerk will read the bill by title serve to further reduce domestic sup- Under the provisions of rule I, paragraph 3, for the second time. plies and increase our dependency on of the Standing Rules of the Senate, I hereby foreign oil at a time when we are try- appoint the Honorable MARK L. PRYOR, a The legislative clerk read as follows: Senator from the State of Arkansas, to per- A bill (S. 2991) to provide energy relief, ing to make America more, not less, form the duties of the Chair. hold oil companies and other entities ac- energy independent. ROBERT C. BYRD, countable for their actions with regard to Republicans believe we should in- President pro tempore. high energy prices, and for other purposes. crease our supply of American energy

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

VerDate Mar 15 2010 10:41 Dec 08, 2010 Jkt 069102 PO 00000 Frm 00001 Fmt 0686 Sfmt 0634 E:\BR08\S08MY8.000 S08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD May 8, 2008 CONGRESSIONAL RECORD—SENATE, Vol. 154, Pt. 6 8091 to bring gas prices down and to create The Democratic approach deals with kinder to each other as we go about American jobs. Apparently our friends that. We go to the fundamentals. The conducting the people’s business today. across the aisle believe we should con- windfall profits tax says to the oil com- I yield the floor. tinue to ask OPEC to increase its sup- panies: There is a limit to what you f ply, while opposing additional produc- can take. Beyond that, the Govern- MORNING BUSINESS tion of American energy. ment is going to tax you and make it We will have an opportunity to vote clear to you that raising prices is not The ACTING PRESIDENT pro tem- on Monday on the proposal that the the answer. pore. Under the previous order, the majority of Members on my side think Second, we are going to stop putting Senate will proceed to a period of would make an actual difference in the more oil at high prices into the Stra- morning business for up to 1 hour, with coming years. It is a fundamental dif- tegic Petroleum Reserve. If there ever Senators permitted to speak for up to ference of opinion. We can either was a time we should not be taking oil 10 minutes each, with the time equally proactively increase our domestic pro- off the market, this is that time. We divided and controlled between the two duction or we can place greater depend- also provide in our bill for going after leaders or their designees, with the Re- ence on foreign suppliers and further this OPEC coalition, the price collu- publicans controlling the first half and delay energy independence. Given the sion that is going on at the expense of the majority controlling the final half. choice, I would rather produce more the American economy. The Senator from Oklahoma. American energy and create more We deal with price gouging to make Mr. INHOFE. Mr. President, let me American jobs. sure the companies that engage in it make one observation, that the guest Mr. President, I yield the floor. know they are going to pay a heavy pastor got his training at Rhema Bible The ACTING PRESIDENT pro tem- price for that kind of conduct. And we College at Broken Arrow, OK. I was pore. The assistant majority leader. go after speculation, if it is excessive, mayor of Tulsa, he reminded me, back Mr. DURBIN. Mr. President, I ask to try to make sure we fuel any fires of at that time. So he had good training. speculation that might be adding to unanimous consent to respond in lead- f er time in the absence of Senator REID. the cost of energy. The ACTING PRESIDENT pro tem- What do the Republicans offer in re- DOMESTIC ENERGY PRODUCTION pore. Without objection, it is so or- turn? Drilling, drilling, drilling. They ACT OF 2008 dered. do not understand one fundamental Mr. INHOFE. Mr. President, let me Mr. DURBIN. Mr. President, Senator fact: The United States has within its respond, firstly, if I can, to the assist- REID could not be here this morning grasp, in our territory and territory we ant majority leader. First, it is easy to and asked me to come to the floor if a control, only 3 percent of the world’s point the finger at oil companies. That response was necessary, and a response supply of oil—3 percent. Each year, we is the easiest ‘‘out,’’ because everyone is necessary. consume 25 percent or more of oil pro- has this perception that all oil compa- There are two fundamentally dif- duced. We cannot drill our way out of nies are doing great. ferent approaches when it comes to this situation. Here is the problem you have. If you America’s energy futures between the We have to stop price gouging on were to take all profits from oil compa- Democratic side and the Republican consumers. We have to hold oil compa- nies—let’s forget about windfall prof- side. The Democratic side believes that nies accountable, and I think the Re- its; take it all, do not leave any at all first we have to do everything we can publican approach does neither. I am for anything else, other than what they looking forward to this debate. I as- to protect consumers of America from are putting into exploration—it would sume that by early next week we will price gouging. We know what is hap- amount to 28 cents a gallon. have a vote and the American people pening. We cannot go to Illinois, Ar- If you slashed their profits in half, as will see where we stand. kansas, Kentucky, or Colorado and not they are proposing to do, that would be run into people saying we cannot un- f 14 cents. Fourteen cents does not help derstand why gasoline prices are so WELCOMING THE GUEST a lot, at least my wife says it does not. high. We know the price of a barrel of CHAPLAIN And I think you know we are kidding oil has gone up to record high levels be- Mr. ALLARD. Mr. President, it is ourselves. There are solutions to this cause of price manipulation by the with great pleasure and pride that I problem, but that is not one of them. Saudis, OPEC, and other countries, and rise to recognize and welcome the Then as far as the Strategic Petro- the Republican approach to this totally guest Chaplain for the Senate today, leum Reserve, we are putting about ignores it. We know the oil companies Pastor Brian Severin, who is the pastor 50,000 barrels per day in there right across the United States last week re- of Victory Christian Fellowship now. If we were to halt that, over the ported record profits in the first quar- Church, Greeley, CO. course of a year it would equal less ter of this year. Since President Bush Pastor Severin has served in the full- than one day of U.S. consumption. came to office, the profits of the oil time ministry for 23 years. He was born That is not what I call a fix. Fourteen companies have more than quadrupled and raised in northeastern Colorado be- cents a gallon is not a fix, one day of and the price of gasoline has more than fore attending and graduating from the time is not a fix. doubled. University of Northern Colorado, which But there are some things we can do. Does the Republican approach even is also located in Greeley. We do have an amendment, amendment address this? The answer is no. We Prior to coming to Greeley 6 years No. 4720. It is by our leader, Senator have, in the Democratic approach, a ago to minister to Victory Christian, MCCONNELL, and by Senator DOMENICI. windfall profits tax, which says to he was the founding pastor for Church This actually was a bill. It was going these oil companies: There is a limit Alive in Sterling, CO, and served as to be the Domestic Energy Production beyond which you cannot go in gouging pastor to New Life Fellowship in Act of 2008, but we are offering it now consumers and overcharging them for Yuma, CO. as an amendment. This would handle a your products. As airlines are faced He is joined today by his wife of 27 lot of the problems. First, if we had all with bankruptcy, as truckers cannot years, Joslyn Severin, along with 14 of the production out there that we afford to fill their rigs on the high- members of his congregation. My col- needed to take care of America’s needs, ways, as the cost of energy is passed on leagues and I very much appreciate we still could not do anything, because to us as higher food prices and the like, Pastor Severin taking time away from we do not have the refining capacity. it is absolutely unconscionable that his duties in Colorado to help guide us Two years ago I introduced the Gas the oil companies continue to show through our deliberations today in the Price Act. I could not believe it went record profits quarter after quarter, Senate. down right on party lines. The Demo- year after year, at the expense of our May Pastor Severin’s words of inspi- crats flat do not want to increase our economy. ration this morning make us wiser and refining capacity. This happened in the

VerDate Mar 15 2010 10:41 Dec 08, 2010 Jkt 069102 PO 00000 Frm 00002 Fmt 0686 Sfmt 0634 E:\BR08\S08MY8.000 S08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD 8092 CONGRESSIONAL RECORD—SENATE, Vol. 154, Pt. 6 May 8, 2008 Environment and Public Works Com- much wants to. I have talked to Sen- to the flood insurance legislation be- mittee. It was actually a pretty smart ator WARNER. They are talking about fore us today. I am an original cospon- approach to it. We were taking a lot of allowing production offshore. Several sor of the American Energy Production the closed bases and using them and al- other States have wanted to do that. It Act. lowing EDA grants to take place so is a wake-up call we have right now The thrust of this legislation is ex- that adjoining communities could turn that we are going to have to do some of panding American energy supply those into refineries, and also stream- these things. It is interesting that Can- through many different avenues. I view lining the process and all of that. ada allows offshore drilling in the Pa- this amendment as an essential step Well, it went right down on party cific, the Atlantic, and the Great forward in both addressing the short- lines. So this amendment we are going Lakes. Cuba is also looking to expand term as well as the long-term Amer- to be talking about is one that will do drilling, which could occur 45 miles off ican energy supplies. I also view this something about the refinery capacity. parts of Florida. If this happened, they amendment as the right policy to deal The one we introduced, the amend- would be doing it with technology that with today’s high price of energy. ment, streamlines the permitting proc- is much less environmentally friendly America needs to advance its energy ess so there would be a maximum on than we have right now. So we have the policy, and this amendment deserves any new refinery of 360 days on a new possibility the Cubans are going to be immediate consideration. refinery or an expansion of 180 days. doing something without any emission There are many excellent provisions We have not increased our refining controls, without any environmental of the amendment that is before us. I capacity. We have not had a new refin- precautions, and we would be allowing am particularly interested in a provi- ery in 30 years. Other countries are it. sion to ramp up production of 6 billion doing it. China is doing it. Mexico is Another part of this amendment is to gallons of fuel derived from coal. The doing it. But we are not. So that is the repeal section 526. This is something provision would start with a mandate first thing we need to do, increase re- that should not have been in before. of 750 million gallons of alternative fining capacity. This was actually put in in the Energy coal-to-liquid fuels and then ramp up Secondly, everybody hold on, because bill that was passed in December of by a similar amount over the following this is something I know is very for- 2007. Section 526 prohibits Federal 7 years, beginning in year 2015. Ana- eign to our thinking nowadays, it is an agencies from contracting to produce lysts estimate this provision will result old concept called supply and demand. nonconventional alternative fuels that in a reduction in the amount of oil We have a lot of demand for gas out emit higher levels of greenhouse gas America is projected to import. there. We know that. We know when emissions than conventional petroleum Simply put, coal is an abundant, af- we go to the pump. The problem is the sources. The scope of the fuels that fordable, reliable, and secure source of supply. I hate to say it. Is there a could be prohibited is left wide open to energy. Coal can also be a clean energy chance? I am kind of excited that the interpretation, including fuels such as source. These coal-to-liquid fuels would public now has the attention of the Canadian oil sands, E85 ethanol, the likely be used first by our military. high prices and realizes we are going to coal and natural gas-to-liquids fuels. The Department of Defense would be have to do something besides the gim- This was an experiment I had some- allowed to sign longer contracts for micks the assistant majority leader thing to do with, as did the occupant of synthetic fuels. The duration of the talked about. That would be to in- the chair, in the Senate Armed Serv- contracts would be expanded from the crease our drilling capacity. We could ices Committee. We now have a B–52H current 5 years to 25 years. By doing do it on ANWR. People talk about the bomber that is actually running on that, this simple provision provides fact that this is pristine wilderness. gas-to-liquid fuel. So we know this is great potential because it adds cer- First of all, I challenge anyone to look something that works. We know it can tainty to the market and provides an- at this area. It is not a pristine wilder- help our situation. other incentive to develop coal-to-liq- ness. The main thing is, if you take What I don’t have time to get into uid facilities. In a time of soaring that little area that we have, with because I only had 5 minutes, but I prices at the pump, this provision de- huge reserves, we have been trying to wish to do it later, is the ethanol man- serves serious debate, serious consider- do something with it. It compares as a date that came with the December of ation. postage stamp does to a football field. 2007 bill. Right now we know that eth- The fundamental energy issue before It is such a small amount. All the Na- anol—and quite a few of the far-left en- us is one, as we have heard from all tives there want it. All the Alaskans vironmental extremists were behind speakers, of supply and demand. It is a want it. It is their land. That would be this thing to start with; in fact, former time for Congress to take action, ac- the first thing we should do to increase Senator Al Gore, Vice President Al tion that can have a real important im- our capacity. Gore has stated he cast the deciding pact on America’s energy supply. We tried this. We passed this 10 years vote to allow ethanol in the first America’s coal is vital to our Na- ago. Then President Bill Clinton vetoed place—is not environmentally sound. It tion’s economic prosperity and our Na- it. If he had not, that would be flowing is expensive. It is not good on engines, tion’s security. Coal is a crucial part of today. All the people who are com- and it is competing. In my State of America’s energy portfolio. Coal pro- plaining about that are the same ones Oklahoma, our livestock people say we vides a foundation for a competitive who complained about the Alaska pipe- can’t continue to have the biomass economy, a secure future, and a pros- line. They said it was going to kill all fuels competing with our feedstocks. perous information technology sector. the caribou. Go up there now during Almost everything you see that is high Wise use of natural resources drives the summer months, and they have in- priced now in the grocery stores you America’s innovation and our eco- creased the number of caribou up there can trace back to the ethanol mandate. nomic success. From the steam engines primarily because in some parts of One of the things we will be wanting to of yesterday to the superconductors of Alaska, the only shade they can find is do—and I will elaborate on it later—is the world, coal has powered this Na- the Alaskan pipeline. They are all to exercise the part of that bill that tion. Now is the time to support the lined up there. So it is not a problem. gives the EPA the opportunity to be in- technology and development of coal to The other major area of production volved in a waiver of the ethanol man- liquids. This will allow coal to be an potential would be to go offshore. It is date. important contributor to America’s interesting. One of the things in this I yield the floor. transportation fuel. After all, coal is amendment is to allow States to deter- The ACTING PRESIDENT pro tem- strategically found in States through- mine what they want to happen off- pore. The Senator from Wyoming. out the Nation, both in the East as well shore. It is interesting, some of the Mr. BARRASSO. Mr. President, the as the West. States, such as Virginia, south of American Energy Production Act of The countries competing with us eco- where we are standing right now, very 2008 is being offered as an amendment nomically—India, China—rely heavily

VerDate Mar 15 2010 10:41 Dec 08, 2010 Jkt 069102 PO 00000 Frm 00003 Fmt 0686 Sfmt 0634 E:\BR08\S08MY8.000 S08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD May 8, 2008 CONGRESSIONAL RECORD—SENATE, Vol. 154, Pt. 6 8093 on coal. They are poised to exploit You heard both the Senator from Now, the second element of the coal’s many benefits. In order for us to Oklahoma and the Senator from Wyo- Democratic leadership’s so-called en- sustain America’s current economic ming talk about some aspects of the ergy policy is litigation. In other leadership, we must continue to har- legislation, the so-called Domenici words, we are going to sue the Organi- ness the vast potential of coal. Energy amendment, which we will vote on, on zation of Petroleum Exporting Coun- sources often face challenges. You Monday, and of which I am a proud co- tries. know what they are: reliability, secu- sponsor. But let me focus on the plan Now, I have heard some of our col- rity, economic competitiveness, ease of announced by Majority Leader REID leagues talk about another context: We conversion, impacts on food supply, and the Democratic leadership yester- need to engage countries such as Iran and environmental considerations. day. First, we will find some very fa- and Venezuela and talk to them di- Coal provides an essential on-demand miliar elements to this plan rolled out rectly about geopolitical matters and energy supply in the United States, by the Democratic leadership. It bears about security matters. and coal is a low-cost energy source. some remarkable resemblance to pre- This is the first time, really, I have Coal has enormous potential to be con- vious plans they have rolled out. The heard them talk about suing countries verted into transportation fuels. At a No. 1 element is it produces not one such as Iran and Venezuela and the Or- time when America faces record prices single drop of additional oil or gas or ganization of Petroleum Exporting at the pump, coal should be used to energy, not one drop. The other char- Countries. The irony of it is, what are we going to sue them for? We are going produce gasoline, diesel fuel, and jet acteristic it bears a remarkable resem- to sue them for, presumably, more oil fuel. Several provisions in the Amer- blance to in terms of past proposals is or make them turn the spigot open ican Energy Production Act of 2008 that they basically suggest we tax, we even wider, ironically forcing us to be- move America’s use of coal and domes- litigate, and we investigate our way to come more dependent on imported oil tic energy in the right direction. Amer- greater energy independence. This is a from dangerous regions across the ica’s energy and economic security will formula which, although familiar, is one that has not shown itself effective, globe and from people who are not our depend on promoting technologies that obviously, in bringing down the pain at friend—President Ahmadinejad in Iran, are related to coal. The time to act to the pump, the price of gasoline. head of an Islamic extremist govern- expand America’s energy portfolio is First, they said: We are going to in- ment on the terror watch list of the now. vestigate price gouging by the oil and State Department as a state sponsor of I urge adoption of the amendment gas industry. We have seen investiga- international terrorism in the Middle when it comes up for a vote. tions by the Federal Trade Commis- East; and then there is Hugo Chavez in I yield the floor. The ACTING PRESIDENT pro tem- sion. We have had numerous hearings Venezuela, somebody who is not our that have found basically no substan- pore. The Senator from Texas. friend, somebody who harbors narco- Mr. CORNYN. May I ask how much tiation for so-called price gouging. In terrorists in the FARC and other orga- time remains in morning business on fact, the cost of oil and gasoline has nizations in his country. These are the our side. been related to unrest around the kinds of people we are going to con- The ACTING PRESIDENT pro tem- world in dangerous parts of the world tinue to depend more and more on by where the supply may be in question, somehow filing a lawsuit against them pore. There are 151⁄2 minutes. Mr. CORNYN. Mr. President, I thank whether it is the Middle East or else- and forcing them to sell us more of the Senator from Oklahoma and the where. their oil? How is that going to make us They found that the failure of Con- Senator from Wyoming for their excel- more energy independent? How is that gress to remove the regulatory burden lent remarks on the energy crisis. I going to enhance our national security to construction of new refinery capac- want to focus attention on a couple of and our economy? ity has led to a bottleneck when it Well, then there is the other answer numbers this morning. comes to refinery capacity where that The first number is $3.65. This is the we have heard in the Democratic lead- oil is then transformed into gasoline ership plan they proposed—this one, average price of a gallon of gasoline that we burn in our gas tanks. again, is a familiar solution, or I now for sale across America. Contrast Then, of course, there is the fact that should say a nonsolution—and this has that with the figure of $2.33. That we cannot repeal the law of supply and to do with the so-called windfall profits shows how much the price of gasoline demand, and that unless we are going tax. has gone up across the country since to do something about increasing the Well, I think we ought to learn from January 4, 2007. If we extrapolate what supply of oil, that if we fix the amount history or else we will be condemned to that means for the average American of oil available worldwide because we relive it. Over the entire 1980 to 1986 pe- family, they have seen a decrease in refuse to open America’s own natural riod, in which the U.S. Government their standard of living or an increase resources in order to expand that sup- had a windfall profits tax, it, in fact, in their cost of living by roughly $1,400 ply, that rising demand for oil by coun- reduced domestic production from be- a year as a result of this increase in tries such as China and India—which tween 320 million barrels and 1,268 mil- gasoline prices. have more than a billion people each lion barrels. That is almost 5 percent of Another figure I wish to mention is who want the kind of prosperity and overall production. If you think about the figure 745. That was 745 days ago, enjoy the sort of economic vitality the it, there is an easy way to understand when Speaker NANCY PELOSI, before United States has—they are going to that. If you put an increased tax on she was Speaker, said that if she and place greater demands on that fixed American producers—because, of her fellow Democrats were given the supply of oil so they can benefit, as course, we cannot put an increased tax majority, they would come up with a America has, from having access to on OPEC, on Venezuela, on Iran, and commonsense plan to reduce gas prices. low-cost—relatively low-cost—energy these state-owned oil companies—the That was 745 days ago. Notwith- for a long, long time. fact is, we put an increased tax burden standing the fact that they announced So price gouging is something for on our own domestic producers. a plan yesterday—I will talk about which we have had investigations in Of course, we find that the Congres- that in a minute—we are still waiting the past. We have had hearings in the sional Research Service has found that for a commonsense plan to bring down Senate Judiciary Committee, on which last time we tried a windfall profits gas prices at the pump. I am proud to serve. The Federal Trade tax, it decreased our domestic oil pro- Here is the quote: Commission has investigated it until duction. Why in the world would we Democrats have a commonsense plan to they were blue in the face and found no want to do that? How does that help in- help bring down skyrocketing gas prices. real evidence of price gouging but, crease the supply of America’s natural This was the Speaker of the House, rather, a deficit of supply when it resources, which can help ameliorate April 24, 2006. As I said, we are still comes to increasing demand as the some of this pain at the pump by in- waiting for that plan. most likely cause. creasing supply and thus bringing

VerDate Mar 15 2010 10:41 Dec 08, 2010 Jkt 069102 PO 00000 Frm 00004 Fmt 0686 Sfmt 0634 E:\BR08\S08MY8.000 S08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD 8094 CONGRESSIONAL RECORD—SENATE, Vol. 154, Pt. 6 May 8, 2008 down, hopefully, the cost of a barrel of beneficial impact on lowering the price anniversary. On a sad note, this is the oil and then the refined product of gas- if, in fact, we were to open up Amer- first year that we honor Israel’s anni- oline? ica’s natural resources here at home? versary without my friend and former Well, the last suggestion has to do We will have an important vote on colleague, Congressman Tom Lantos, with the strategic oil reserves. That is Monday where the so-called Domenici former chairman of the House Foreign a final answer, by eliminating the amendment—which I am proud to Affairs Committee. Mr. Lantos was the 70,000 barrels a day that we put into join—will be offered for a vote, where only Holocaust survivor to ever serve the strategic oil reserves. Now, I think the Senate can go on record in showing in Congress, and his recent passing has there may be a case for reducing or where they stand when it comes to this left a hollow void for all of us. eliminating the 70,000 barrels of oil a effort to help bring down the price at Mr. President, on April 22 of this day that go into the Strategic Petro- the pump, which Speaker PELOSI an- year, the Senate unanimously adopted leum Reserve. But I have to tell you, nounced 745 days ago. The highlights, a resolution expressing our unwavering the world consumes roughly 85 million as I have already mentioned, of that commitment to the sovereign and inde- barrels of oil a day—85 million barrels bill are opening portions of the Outer pendent State of Israel. of oil a day. What effect is 70,000 bar- Continental Shelf, as we have the Gulf Sixty years after its founding, we rels a day that would not go into the of Mexico 300 miles offshore from the now witness a strong nation, a stead- Strategic Petroleum Reserve, what im- State of Texas. I tell you, you cannot fast ally and strategic partner of the pact would that have on reducing the even see the drilling activity out there United States, a dynamic democracy price of oil globally or bringing down 300 miles offshore. Indeed, the drilling with a thriving economic, political, the price at the pump? Well, my cal- activity could occur in the Outer Con- cultural, and intellectual life, that sur- culation is that by reducing the tinental Shelf beyond the horizon in a vives despite the heavy costs of war, amount of oil going into the Strategic way that is not even visible to people terrorism, and unjustified diplomatic Petroleum Reserve, we could bring on shore. and economic boycotts. down gas prices maybe 2 cents or 5 I mentioned the Arctic National We now witness an innovative nation cents per gallon. Maybe that would be Wildlife Refuge. Tapping into that oil which has developed some of the lead- welcomed but hardly adequate to deal and gas, which we know is there, would ing universities in the world and pro- with the high gas prices we have sus- immediately produce—once it is done— duced eight recipients of the Nobel tained and are experiencing today. huge volumes of oil that could help re- prize. But I want to take that one step fur- lieve our dependence on imported oil. We now witness a compassionate na- ther. If our Democratic friends believe We know that building additional re- tion, which regularly sends humani- reducing the amount of oil that goes fineries would help relieve some of that tarian aid, search-and-rescue teams, into the Strategic Petroleum Reserve bottleneck when it comes to refining mobile hospitals, and other emergency by 70,000 barrels a day is a good idea the oil into gasoline. Of course, 70 per- supplies to help victims of disasters because that might reduce, although cent of the price of gasoline is the price around the world and which has taken infinitesimally, the cost of gasoline, of oil, but another part of it is the bur- in millions of Jews from countries den we put on the permitting process how much more sense would it make to around the world, often fleeing those for the construction of new refineries explore and develop the million-barrel- countries and persecution. These ac- or expanding refinery capacity. complishments have followed one of a-day capacity that is located in Alas- My colleague from Wyoming talked the most tragic events in human civili- ka in the Arctic National Wildlife Ref- about coal, and I agree with him that zation: the slaughter of more than 6 uge? If you take the million barrels of we ought to use good, old-fashioned oil a day that could be produced from American ingenuity in our research million European Jews during the Hol- ANWR, then you are talking about— and scientific ability to figure out, how ocaust. We are reminded that, as I have said according to the same calculation I do we use this coal—we are the ‘‘Saudi many times before on this floor, the just used on the Strategic Petroleum Arabia’’ of coal—how do we use it in a Reserve—reducing the pricing of gaso- way that is compatible with a good en- events of the Holocaust are not distant line, by an additional million-barrel vironment? The technology has already and are not buried in the past. Today, supply of American oil a day, by 85 been demonstrated, things such as those who survived the camps live to cents to $2.14 a gallon. Now, that would coal-to-liquids technology, coal gasifi- tell us their story, the stories of their be a real impact, to be able to bring cation, which can capture the carbon, families and their lives before the Hol- down the price of gasoline by 85 cents deal with the environmental concerns, ocaust. Their children and grand- to $2.14 a gallon. and yet provide us access to energy children are here with us too. They are I just mentioned the ANWR reserves. which can help drive our economy and living testimony to the strength, the But it is estimated if we were actually help make us less dependent on im- courage, and optimism of their parents to open not only Alaska to environ- ported oil and gas from other parts of and grandparents. But in their hearts mentally responsible development of the world. and in their souls they feel the pain those oil and gas reserves located there So, Mr. President, I hope our col- and suffering of those who raised them. and produce an additional million bar- leagues on the other side of the aisle In them, too, the past is present. rels a day of oil, that if we were also to will come forward with additional Echoes from that tragedy still rattle leave up to the States—States such as ideas. I have explained how the pro- our world in other ways. Every time a Virginia and other States, Alaska—the posals they have made would have no hateful slogan is spray-painted on a option to open their Outer Continental impact, would provide no supply but wall, every time a bigoted joke spreads Shelf to oil reserves, to further produc- would really just rehash old, tired like wildfire on the Internet, every tion, if we were to open some of the oil themes which have been shown not to time a synagogue somewhere in the shale and oil sands out in the West to work in the past. But I think the de- world has to station armed guards out- production, we could develop another 3 bate is an important one, and I look side so its members can pray in peace, million barrels of oil capacity right forward to continuing it. and every time a terrorist Qassam here in America without having to de- Mr. President, I yield the floor. rocket attack from Gaza shatters a pend more and more on foreign sources The ACTING PRESIDENT pro tem- pane of glass at a family’s home or a of oil. pore. The Senator from New Jersey. school, we feel the dark shadows of his- If you take the same argument our f tory falling upon our time. friends have offered on the impact of It is a harsh reality that 60 years reducing deposits of oil in the Stra- 60TH ANNIVERSARY OF THE after its founding, the nation of Israel tegic Petroleum Reserve and that that FOUNDING OF ISRAEL continues to face mounting threats to would actually have an impact on Mr. MENENDEZ. Mr. President, I its way of life and its existence. Sixty price, how much more would it have a rise to honor and celebrate Israel’s 60th years after the establishment of a

VerDate Mar 15 2010 10:41 Dec 08, 2010 Jkt 069102 PO 00000 Frm 00005 Fmt 0686 Sfmt 0634 E:\BR08\S08MY8.000 S08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD May 8, 2008 CONGRESSIONAL RECORD—SENATE, Vol. 154, Pt. 6 8095 homeland for the Jewish people, anti- the history of Israel goes back more tween the promise of America and the semitism is very much alive. than 4,000 years ago to the first words promise of Israel. The early settlers to So those who speak against the sov- that God spoke to Abraham as recorded America in fact believed they were ereignty of Israel or threaten its oblit- in Genesis 1:21: founding here a new Jerusalem. The eration or who believe that anti- Now get thee unto the land that I will first minister to step foot at Plymouth semitism is an attack that need not be show thee, and I will make thee a great Na- Rock uttered words from the prophet answered, do not recognize the con- tion. Jeremiah. Many of our Nation’s Found- sequences of history. In fact, an attack That was the covenant that God ing Fathers were themselves Zionists. against anyone simply because of race made with Abraham and which God re- The President of the Continental Con- or religion is ultimately the beginning peated to Isaac, to Jacob, and then to gress, Elias Boudinot, predicted that of the unraveling of civilization. So it Moses who, with God’s help, delivered the mighty power of God would some- is in our common interests to raise our the children of Israel out of bondage in day return the Jews to their beloved voices against antisemitism. Egypt to Mount Sinai where they re- land. And John Adams wrote: By honoring and commemorating the ceived the Ten Commandments, their I really wish to see the Jews again in 60th anniversary of Israel, we do more national statement of purpose and des- Judea as an independent Nation. than congratulate a nation. We take a tiny, and then after 40 years in the wil- When the modern State of Israel de- stand against hatred and discrimina- derness, returned to the land that God clared its independence 60 years ago tion everywhere. We recognize a tri- had promised—the land of Israel. this month, it was officially and most umph over fear and achievement of in- It was there in the land of Israel significantly recognized a mere 11 min- dustriousness, a victory of hope. We ex- more than 3,000 years ago that King utes later by a great American Presi- press our sincere confidence that de- David entered Jerusalem and declared dent, Harry S. Truman. spite the challenges its people have it to be the capital of the Jewish peo- Americans and Israelis alike are the faced, despite the threats to their very ple. And it was there in Jerusalem that children of freedom. We are both de- existence, Israel has and it shall over- David’s son Solomon built a holy tem- voted to our democratic ideals, our cul- come. ple to house the Ark of the Covenant ture of economic opportunity, and our Israel and the Jewish people have and the Ten Commandments. Thus in political pluralism. These are the prin- held many commemorations and events one place was established both the po- ciples we cherish and the principles over the past week. Yesterday was a litical capital of the Jewish people and that define not just who we are but day to remember those who gave their the religious center of that people’s who we aspire to be. I think it is the lives to protect the State of Israel and faith. main reason, when our two nations others who have fallen victim to at- It was also there almost 2,600 years look at each other, we so often see the ago on a dark day in history that the tacks from its enemies. Today is a day best of ourselves. It is also why suc- temple that Solomon built was de- ceeding Presidents of both parties since to celebrate the nation’s 60 years of stroyed. The Jewish people were forced Harry Truman have given such stead- life. It is a day for celebration and for into exile, returning just 40 years later fast support to the State of Israel. strong action. to their homeland to rebuild the tem- I have often said as Presidents come On this day, we pause to commemo- ple. It was during the time of the sec- and go, some seem more supportive of rate all of those who have contributed ond temple under Roman rule that Israel, some somewhat less. The cur- to make Israel such a strong nation, Jesus of Nazareth lived, preached, rent President obviously is one of those and we pledge to continue to strength- taught, and healed the Jews of Israel. who has most steadfastly and signifi- en our bonds of close friendship and co- But the temple was to be destroyed cantly supported Israel. But over the operation so that as proud as this na- once more, and most, if not all, of the long term, the great guarantor of the tion’s history is, the future will be Jews were forced to flee the land. U.S.-Israel relationship has been the even brighter still. For nearly two millennia, the Jewish bipartisan, pro-Israel majorities in Mr. President, I yield the floor. people in the Diaspora prayed every both Houses of Congress. The ACTING PRESIDENT pro tem- day that they could return to the Throughout her brief history, Israel pore. The Senator from Connecticut is promised land. For almost 1,900 years, has also courageously faced enemies recognized. the State of Israel was thus carried in who have threatened her existence. Mr. LIEBERMAN. I thank the Chair. the hearts of millions of these Jewish Today we once again see the rise of Mr. President, I thank my colleague exiles, and even more millions of Chris- such threats to Israel, including some from New Jersey for his powerful and tians who prayed some of those same that are existential. Those threats eloquent words. I am privileged now to prayers for Zion’s restoration, particu- come from the same Islamist extrem- stand to join him in giving honor and larly here in America. ists and terrorists who threaten Amer- celebrating the 60th anniversary of the That collective yearning gave rise to ica today and against whom we are founding of the modern State of Israel, a new political movement at the end of fighting the global war on terrorism. which is a day truly to celebrate. the 19th century—the modern Zionist History has taught us that we cannot The 20th century witnessed unprece- movement. It was led by Theodore ignore or appease these dangers, so dented horrors inflicted by man Herzl and a small band of followers, let’s never forget that Israel is a living against his fellow man, from the Jewish and Christian, throughout the symbol for the ideals we as Americans trenches of World War I to the gulag world. Many people said those early Zi- treasure—the ideals of freedom and archipelago of the Soviet Union to the onists of the modern era were naive human dignity. killing fields of Cambodia and Rwanda dreamers, but Herzl replied: ‘‘If you It is sometimes said that nations do and, of course, the genocide per- will it, it is no dream.’’ If you will it, not have permanent friends, only per- petrated by Nazi Germany against the it is no dream. Will it they did, and manent interests. But I believe the Jews of Europe. work for it they did. In 1948, 60 years United States of America has a perma- Against these acts of bloodshed and ago this month, their dream became a nent interest in our permanent friend- repression and violence, the creation of reality. ship with the State of Israel because the modern State of Israel in 1948 The story of Israel’s rebirth is inex- that friendship is based on eternal val- stands as a counterpoint in human his- tricably bound up in the story of an- ues. We pledge today on the day of this tory, a soaring act of hope and faith in other extraordinary principal, purpose- 60th anniversary of the modern State our capacity as human beings to rise ful nation with its own special sense of of Israel, and we pray with God’s help from the ashes of despair and to rebuild destiny, and that is, of course, our own that those eternal values and perma- and restore that which for so long had beloved country—the United States of nent friendships will sustain these two seemed hopelessly lost. America. great democratic nations eternally. The modern history of the State of From the earliest days of our Na- I thank the Chair, and I yield the Israel goes back 60 years, but of course tion’s history, there has been a link be- floor.

VerDate Mar 15 2010 10:41 Dec 08, 2010 Jkt 069102 PO 00000 Frm 00006 Fmt 0686 Sfmt 0634 E:\BR08\S08MY8.000 S08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD 8096 CONGRESSIONAL RECORD—SENATE, Vol. 154, Pt. 6 May 8, 2008 The ACTING PRESIDENT pro tem- year-old daughter at that time who Israel. He has captured the special na- pore. The Senator from Pennsylvania. was serving in the military. At dinner, ture of Israel, which one gets when Mr. CASEY. Mr. President, I rise Rabbi Gordis told us the story about they have an opportunity to visit the today to commemorate and to cele- going very early in the morning to country and see the faces of the people brate the 60th anniversary of the wake up his daughter to take her back of Israel and what they have been able founding of the modern State of Israel. to where she was stationed in the to accomplish in a relatively short pe- I wish to commend my colleagues from army, only to notice that, while she riod of time, in a very small country. Connecticut and New Jersey, Senators was soundly sleeping in her bed, next Today, we in the Senate pause to cel- MENENDEZ and LIEBERMAN, on their to her automatic weapon was her Curi- ebrate Israel’s 60th anniversary. To the statements this morning. ous George stuffed animal from her strongest ally of the United States in Since its independence in 1948, childhood. As the father of four daugh- the Middle East, we wish Israel contin- Israel’s promotion of democratic val- ters, I will never forget that image— ued success. ues has helped forge a thriving society the image of a young Jewish woman, There is good reason that Israel is and a bastion of freedom in a region bravely serving her country, but not our strongest ally in the Middle East. where that value is sadly all too that far removed from her own child- It is a nation that has been built upon scarce. The vision of a permanent hood. Rabbi Daniel Gordis, like so democratic principles, a trusted ally in homeland for the Jewish people was many parents in Israel, was feeling the our war against terror. It shares our centuries in the making and was fi- emotion, the human emotion of love values in a critically important part of nally achieved in May of 1948. From its for his daughter and, at the same time, the world to the United States. outset, Israel has faced a myriad of love for his country. There is no better President Lyndon Johnson said, ‘‘The U.S. and Israel share many common challenges which it has navigated suc- example of the profound sacrifices of objectives, chief of which is the build- cessfully against all odds. A small the Jewish people and what they have ing of a better world in which every na- state with few natural resources and given to build and preserve the state of tion can develop its resources, and de- residing in a region decidedly un- Israel. The story of Rabbi Daniel friendly to its very existence, the odds velop them in freedom and peace.’’ Gordis and his daughter is Israel’s Israel today is a vibrant oasis of de- against Israel have always been high. story. mocracy in a region of the world re- Yet the nation of Israel has endured. I was reminded, when I was there, of plete with secular and religious dic- Today, Israel is known for a vibrant, a passage from Scripture. We went by a tators. high-tech economy. It successfully ac- school, and this part of scripture was For 60 years, there have been near commodates a significant Arab popu- inscribed on the school, which, in many constant military and terrorist lation inside its borders, allowing Arab ways, represented the bright promise threats, economic boycotts, and diplo- representatives to serve in the Knesset. and future of Israel. It is taken from matic hostility. Yet it still stands as a It has achieved broad universal rec- the prophet Zechariah, chapter 8, and I thriving, pluralistic democracy, with ognition and has forged peace with pre- will quote it briefly. This is the proph- the rule of law, and an independent ju- vious enemies, including Egypt and et predicting thousands of years into diciary that works to protect freedom Jordan. This will to surmount adver- the future at that time: of speech, association, religion, a free sity time and time again comes from There shall yet old men and old women press, and fair and open elections. the tenacious spirit of its people and dwell in the streets of Jerusalem, and every Israel has become not only a regional represents the very reason we are able man with his staff in his hand for every age. power but international leader in agri- to celebrate their anniversary today. And the streets of the city shall be full of culture, health, science, medicine, high boys and girls playing in the streets thereof. I was fortunate enough to visit Israel tech, and security. It has used that ex- in November of 2005 and meet with var- That prophecy of long ago has indeed pertise to reach out and help so many ious people who make up the mosaic of come to pass for the great state of other countries in the world deal with that great nation. Today I want to Israel. So today, and every day, when its challenges. Although it is a very share with my colleagues two indelible we celebrate their bold entrepreneurial small country, eight of its citizens experiences. spirit, a strong sense of community, a have been acknowledged as Nobel lau- First, I toured a semiconductor commitment to national service and, reates. In homeland security, it has plant, the Vishay plant near Tel Aviv, obviously, a commitment to liberty, helped the United States in dealing a plant whose base company is located all these values, combined with the with our war against terror in the post- in Chester County, PA. What made this democratic ideal that permeates their 9/11 era. plant so special outside of its Pennsyl- society, all these make Israel what it is Tel Aviv’s Ben-Gurion Airport is a vania ties was that it was started by a today and demonstrates why it is such model for airport security. Our Nation Holocaust survivor, Dr. Felix a strong ally of the United States of has benefited by learning how the Zandman, and his son Mark who led us America. Our two nations share a deep Israelis protected their airports, and on the tour. and unshakable bond, and that alli- we are using many of those procedures We not only observed the factory ance, I believe, will endure for the next here in the United States to protect processes and equipment but also, and 60 years, and for all of our tomorrows, our own citizens. more importantly, the resiliency, I as it has for the previous six decades. I can tell you how the Israelis have should say, of this brave family. Dr. As the world community continues helped Maryland deal with homeland Zandman experienced the most horrific to deal with conflicts in the region, the security issues. They have come and fate imaginable to man. Yet out of his Jewish people must know that the looked at one of our urban hospitals to experience, he was able to pick up the United States will always extend our make sure we take every precaution to pieces of his life, begin participating in assistance to our indispensable ally as protect the citizens of Maryland. his community again, and to become a it moves forward on the road toward Israel is a safe haven for Jews—from very successful businessman, who now peace and stability. the Soviet Union, to Ethiopia, or any contributes to the global economy. To Once again, I extend my warmest country where Jews are threatened. As me, his story reflects the strength and congratulations to the state of Israel David Ben-Gurion said 60 years ago, courage embodied in the Jewish people. on its 60th anniversary. ‘‘The land of Israel was the birth place The next experience occurred while I yield the floor. of the Jewish people. Here their spir- attending a Saturday dinner in Jeru- The ACTING PRESIDENT pro tem- itual, religious, and political identity salem after the end of the Sabbath. I pore. The Senator from Maryland is was shaped. Here they first attained was at the home of Rabbi Daniel recognized. statehood, created cultural values of Gordis, who is well known in the Mr. CARDIN. Mr. President, first, let national and universal significance and United States. He went to Israel from me thank my colleague Senator CASEY gave the world the eternal Book of the United States. The rabbi had a 19- for his comments about the state of Books.’’

VerDate Mar 15 2010 10:41 Dec 08, 2010 Jkt 069102 PO 00000 Frm 00007 Fmt 0686 Sfmt 0634 E:\BR08\S08MY8.000 S08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD May 8, 2008 CONGRESSIONAL RECORD—SENATE, Vol. 154, Pt. 6 8097 Ben-Gurion went on to say that the other round of peace talks appears to our independence, our Nation’s birth- State of Israel ‘‘will be based on free- have stalled once more. Hamas con- day. dom, justice, and peace, as envisioned tinues to launch Qassam rockets at Today, some 10 years later, as we pre- by the prophets of Israel; it will ensure Sderot and other towns near Gaza. Sui- pare to celebrate Israel’s birthday with complete equality of social and polit- cide bombings continue. Hezbollah has the Israelis and people all over the ical rights to all of its inhabitants, ir- increased military capability, with world, I want to close with the words of respective of religion, race, or sex; it support from Syria and Iran. The lead- Israeli President Shimon Peres spoken will guarantee freedom of religion, con- ers of Iran—the most active state spon- only a few days ago. I know the Pre- science, language, education and cul- sor of terrorism in the world—continue siding Officer has met Shimon Peres ture; it will safeguard the holy places to call for Israel’s destruction, while before in the number of roles he has of all religions.’’ denying that the Holocaust ever oc- played. I have been fortunate to do Since its first days as a modern curred. that as well. I have never met anyone state, it has sought peace with its Arab These are enormous, complex chal- who has a greater gift with the English neighbors. During the declaration of lenges. But after 7 wars in only 60 language than this man. independence, Israel stated: years, Israel somehow has achieved re- I want to share these words he said a We extend our hand to all neighboring markable—some would say miracu- couple days ago: states and their peoples in an offer of peace lous—success, all the while having to Over the past 60 years, we have something and good neighborliness and appeal to them fight for its existence almost every sin- that previous generations of Jews, those who to establish bonds of cooperation and mutual gle day. were trampled in the pogroms and who were help with its sovereign Jewish people settled Today is the day to express our fun- burned in the crematoria, did not have. The in its own lands. The state of Israel is pre- damental pride in a number of their soldiers who fell created a miracle unparal- pared to do its share in a common effort for successes. For example, Israel’s popu- leled in history: the miracle of the state of the advancement of the entire Middle East. Israel. . . . For 60 years, they fought in seven lation today is 7.3 million people, more It has had success, with the help of wars that were forced upon us, and that we than 9 times the 800,000 who lived there the United States, as peace agreements won. They enabled us to establish an exem- in 1948. Since its founding, over 3 mil- were entered into with Egypt and Jor- plary society, to be trailblazers in the world lion immigrants have been successfully in . . . agriculture, medicine and defense, to dan. But to those who continue to chal- absorbed. be a peace-seeking people, a democratic lenge Israel’s sovereignty and security, While Israel is the world capital of state, and a state that seeks justice. let me caution them with the words of Torah learning, it is among the world’s To that I would only add, may it be President John F. Kennedy when he leaders in high-tech, medical, and sci- so for a millennium or more. said: entific advances. In 1948, there were Ms. KLOBUCHAR. Mr. President, I Israel was not created in order to dis- only two universities; today there are join my colleagues who have come to appear. Israel will endure and flourish. It is eight. On a per capita basis, Israel’s the floor today to recognize and salute the child of hope and the hope of the brave. It can neither be broken by adversity nor de- GDP places it in the top tier of all na- the 60th anniversary of the founding of moralized by success. It carries the shield of tions. Democratic institutions flourish the modern state of Israel. democracy and it honors the sword of free- there. Both Jews and Arabs serve in Today is a great milestone for the dom. Israel’s Parliament, the Kennesset. Ad- people of Israel—and for all Americans. On the 60th anniversary of the state ditionally, Israel has an independent, Ever since President Truman recog- of Israel, we wish it continued success effective judiciary and a free press. nized Israel minutes after its birth on and peace, as the bond between our two So today I rise to join many of my May 14, 1948, the United States and countries continues to strengthen. colleagues in reaffirming the commit- Israel have enjoyed a friendship based I yield the floor. ment of the United States to Israel’s on values rooted in democracy and mu- The ACTING PRESIDENT pro tem- security. tual strategic goals. pore. The Senator from Delaware is For the people of Israel, to its citi- Israel’s survival and success are a re- recognized. zens, our message is simple and clear: markable testimony to the vision that Mr. CARPER. Mr. President, I ask We will continue to stand in solidarity inspired its creation six decades ago unanimous consent to speak as in with you. We are proud of what you and to the Israeli people who have morning business for up to 10 minutes. have become. made that vision a reality . The ACTING PRESIDENT pro tem- As I said earlier, I have had the privi- On this day of celebration, we must pore. Without objection, it is so or- lege of visiting Israel a number of reflect on the course charted by the dered. times—when I served in the House, as a great leaders over the last six decades Mr. CARPER. Mr. President, 60 years Governor leading a trade delegation, as that have made this milestone possible. ago, on May 8—or May 14, under our a Member of the Senate, and perhaps Though the journey has not always western calendar—Israel declared its the most special and memorable visit been along a straight and smooth path, independence. On this special day, for me was with my teenage son, each step along the way has been paved when Jews and Christians, heads of roughly 3 years ago. We were in Israel with the two fundamental and com- state, and others around the world cel- on Easter weekend. We actually had plementary tenets of the Israeli nation: ebrate the founding of Israel, I rise for the privilege of being on Golgotha, resilience and faith.‘‘ a few minutes to reaffirm our Nation’s where Christ was believed to have been The existence of Israel across these commitment to Israel’s security and crucified, and we were there on Easter six decades—the way it has grown and the pursuit of a comprehensive, just, Sunday. We were privileged to be at flourished—has provided security and and lasting peace in the Middle East. the tomb where Christ’s body was be- opportunity for its citizens. It has That is one of the reasons I cospon- lieved to have been lain, and we placed strengthened and enhanced Jewish life sored the resolution recognizing our hands there on Easter Sunday. around the world. And it has been a Israel’s 60th birthday, and reaffirming What an unforgettable memory. I had beacon of democracy that makes the the close ties between our country and the privilege of meeting Prime Min- entire world a safer, more hopeful Israel, a nation I have been privileged ister Shamir, Ehud Barak, Ariel Shar- place. to visit as a Congressman, as a Gov- on, Netanyahu, and Shimon Peres, I had the honor of traveling to Israel ernor, as a Senator, and maybe most among others. I will never forget being 2 years ago and seeing first-hand the importantly as a father with a teenage at the home of the U.S. Ambassador to strength and vitality of the country. I son. Israel on July 4, roughly 10 years ago— still remember the warm welcome I re- Current events threaten to over- being there and meeting what seemed ceived from the Israeli people, as well shadow the importance, though, of this like half of the leadership of Israel, and as the courage and pride they bring to independence day: Prime Minister any number of prominent Israeli citi- everyday life. I was honored to meet Omert is again being investigated. An- zens as our guests that day celebrating with Prime Minister Ariel Sharon just

VerDate Mar 15 2010 10:41 Dec 08, 2010 Jkt 069102 PO 00000 Frm 00008 Fmt 0686 Sfmt 0634 E:\BR08\S08MY8.000 S08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD 8098 CONGRESSIONAL RECORD—SENATE, Vol. 154, Pt. 6 May 8, 2008 a few weeks before his tragic stroke, ment. The Israelites fled from Phar- of history until the final chapter of and I will value forever the lessons I aoh’s slavery, wandering for 40 years in Man. learned from our conversation. the desert before coming to their land. May Israel ever be with us, and us Today, America’s and Israel’s inter- It is a familiar narrative—and not only ever by her side. ests in the Middle East and around the to those who study Scripture—for Mr. WYDEN. It is a great honor to world have never been more closely those early trials of the Jewish people come to the floor in celebration of the aligned. Our common values and objec- bespoke an awe-inspiring destiny, both 60th anniversary of the establishment tives continue to drive us to meet the glorious and tragic. No other people on of the State of Israel. The creation of challenges we face, and to pursue op- earth have survived and prospered in an independent Israeli State was truly portunities for greater peace and pros- the face of so much hardship. The Jew- one of the most significant events of perity. ish community has been contem- the 20th century. Following the hor- We are in the midst of turbulent poraries of the Assyrians and Babylon, rific events of the Holocaust, the times, with. instability threatening to Crusaders and Rome, the Hapsburgs founding of the State of Israel symbol- spread across the Middle East. But the and the Soviet Kremlin. They have ized a recognition of the right and the people of Israel must know that wher- faced injustice, persecution, expropria- need of the Jewish people to have a ever forces of intolerance gather to en- tion, pogroms, and genocide; and they homeland—a place of sanctuary and se- danger their safety or security, the have persevered. curity after the senseless annihilation of 6 million Jews. The Holocaust was United States will stand beside them in The return of the Jews to the Holy not the first or the last genocide. It defying and defeating these foes. Land is perhaps the greatest historical was the culmination of centuries dur- By continuing to support Israel, we event of our time. The Jewish commu- ing which Jews were ostracized, per- support stability and democracy and nity emerged from the greatest tragedy secuted, and purged from country after we can make further progress toward the Diaspora had ever known, and in country. The Jewish people struggled peace in the region. its aftermath built the greatest tri- to maintain their heritage, their tradi- I ask that my colleagues join with umph. The authors of that triumph en- tions, and did so in the midst of other me in congratulating and celebrating compass the whole of the early Israeli cultures, after the fall of Jerusalem with the people of Israel on the 60th community. The great David Ben- and enslavement by many other soci- anniversary of the founding of their na- Gurion declared Israel a state but he eties. tion, and that we renew our commit- could not have without the thousands For over 2000 years, Jews faced dis- ment to ensuring that we will continue of brave Israelis willing to fight for it. crimination, including restrictions of to celebrate each successive anniver- Chaim Weizman secured international their rights, religious practices, and sary for decades to come. support for Israel but he could not have even professional occupation. Yet even Mr. NELSON of Florida. Mr. Presi- without the hundreds of thousands of as Jews were able to prosper and estab- dent, Israel’s first Prime Minister Jews willing to immigrate to the Holy lish themselves as an integral part of David Ben-Gurion, on May 14, 1948, pro- Land. And of all these heroes, the fa- society in Europe, this progress was claimed the establishment of the state mous and the anonymous, none have wiped out by the Nazi regime. Thou- of Israel, and 60 years later now, we given more than the 22,437 Israeli sol- sands upon thousands of Jewish fami- celebrate this momentous time in diers who have fallen in battle since lies, including my own, were uprooted Israel’s history. I congratulate, along 1860. It is no coincidence in Israel that from their homes and forced to flee for with all of the other Senators, Israel Independence Day is preceded by Re- their lives for no other reason than the on its 60th anniversary, and the close membrance Day, to honor the fallen fact that they were Jewish. Not all of relationship the United States and Zahal warriors. On this 60th anniver- our family was able to get out. We lost Israel have. It serves as an important sary of Israel’s independence, I know family at Krystalnacht. We lost family purpose of promoting peace in the Mid- that wherever they are, those sons and at Theresienstadt. My family came to dle East. daughters of Judea are proud indeed. this country knowing they were com- Helping Israel achieve peace with its I am also proud that America has ing to the best and freest place on neighbors while maintaining its secu- stood with Israel in her times of need. Earth. But not all were able to come rity strengthens both of our strategic It is only fitting that the two great here. Many European Jews were not al- interests. We must do everything we democratic nations forged by immi- lowed entry into other countries, in- can to end the bloodshed and bring the grants and pioneers be close allies, in cluding the land that is now Israel. parties together. We must resume the ongoing struggle against the forces Upon the conclusion of World War II, those positive measures. of fanaticism. For Israel, this fight is the United States joined with other We must, as the Good Book says: as familiar as existence; for America, countries in the United Nations to rec- Come, let us reason together. Most of it is an old enemy in a new guise. Dur- ognize the right and need of the Jewish us out here support two states living ing my time in the Senate, I have people to have the security of being side by side in peace and security for worked tirelessly to strengthen the able to live in their own state. The both. That was outlined by the Presi- bond between our two countries. I be- United States was, in fact, the very dent in a speech on June 24, 6 years lieve the bonds our two countries share first country to recognize the State of ago. are as everlasting as they are many- Israel on May 14, 1948. After thousands To achieve that, the Palestinians layered. Together, they will ensure of years, Jews had established in their need to reform their institutions and that Israel faces down the next threat, historic homeland a sovereign country cease those continued terrorist activi- and the one after that, and after that, of their own, Israel. Yet Israel is much ties against all the innocents. Contin- and so on until her 120th anniversary, more than a sanctuary for the Jewish ued engagement by our country is re- when I pray there will at last be peace. people. Israel’s importance transcends quired to help us get to that goal of The past three have been littered the Jewish religion. Israel is a place of peace in the Middle East. I look for- with many enemies, from Titus to the enormous historic significance. It is a ward to the continued cooperation of Nazis, each with their own dream of de- sacred land not only for Jews but for Israel and the United States toward stroying the Jews. Some came peril- Christians and Muslims as well. All that goal. My hearty congratulations ously close. But today we know that three of the world’s major monothe- to Israel on its 60th anniversary. the destruction of the Second Temple, istic faiths honor Jerusalem and other Mr. SMITH. Mr. President, I rise and the Inquisition, and the pogroms, surrounding sites as holy places that today to honor the State of Israel on and the Holocaust were not in fact the hold unique importance to the develop- the 60th anniversary of its independ- end of the story. The legend did not ment of their religions. Israel has ence. end. In 1948, the new chapter of the worked to protect the interests and The story of the tribes of Judea tribes of Israel began, always glorious rights not just of Jews but those of all began, as we know, in the Old Testa- and always tragic, animating the pages faiths.

VerDate Mar 15 2010 10:41 Dec 08, 2010 Jkt 069102 PO 00000 Frm 00009 Fmt 0686 Sfmt 0634 E:\BR08\S08MY8.000 S08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD May 8, 2008 CONGRESSIONAL RECORD—SENATE, Vol. 154, Pt. 6 8099 The Israeli Government provides ac- Tribes. Israel became a nation as the threats. Iran and its regional proxies— cess to historic and religiously signifi- progeny of those patriarchs grew in Hamas and Hezbollah—continue not cant sites and allows clergy, scholars, population of more than 1 million. And only to reject a peaceful solution to historian, archeologists, and others to Israel has become a revered concept, a the Arab-Israeli conflict, but also to pursue their studies of this very his- union of spiritual ideas that has bene- undermine the very existence of Israel toric, very special land. Israel is also of fited many cultures far from the Mid- as a democratic and Jewish State. enormous importance to our country. dle East. The Iranian President continues to Israel is America’s strongest and most That is what our second President, blatantly deny the Holocaust of the reliable ally in the Middle East. In a John Adams, meant when he wrote: Jewish people while vowing to create region that has been plagued by insta- The Hebrews have done more to civilize another one. Iran’s pursuit of a nuclear bility but is of enormous strategic sig- man than any other nation. If I were an weapon is very real and must not be al- nificance, Israel is a stable democracy atheist and believed blind eternal fate, I lowed to succeed. A nuclear Iran would and a stalwart ally. should still believe that fate had ordained dramatically alter the fragile balance As a member of the Select Com- the Jews to be the most essential instrument for civilizing the nations. in that volatile region and would pose mittee on Intelligence, I follow these an existential threat to the State of issues closely and would say from the We in the United States have enjoyed Israel. that civilizing influence. Much of what Camp David accords to the current In 1948, the United States under peace talks, Israel has consistently we believe and assert in our founding documents was drawn from ancient President Harry Truman made an un- demonstrated a willingness to work conditional commitment to the State along with the United States to engage Jewish roots. The belief in individuals having ultimate value is because they of Israel. That commitment was not its neighbors in difficult negotiations. based on the price of gas, economic pol- Despite constant attacks and threats are made in the likeness and image of God; respect of the rule of law as the icy, or partisan politics. It was a moral to its very existence, Israel has given covenant made in response to genera- up land and made very significant con- foundation of a just society, not just the power of men; and a commitment tions of mistreatment of the Jewish ciliatory offers in the interest of people and a desire for them to have a achieving lasting peace and stability in to the cause of liberation because the rights of the people are an inalienable secure homeland founded upon demo- the Middle East. cratic principles. We believed then, as Finally, beyond the religious, his- gift from their Creator. we do now, that democracy is, in Lin- toric, cultural, diplomatic, and stra- So this celebration is not just a mile- coln’s words, ‘‘the last best hope of tegic significance, it is important to stone for the Jewish people but for all Earth.’’ From such a commitment recognize the impact Israel has had at humanity. It is a celebration of the there is no out. To deny our support of the human level for its citizens and for perseverance and faith of the Jewish Israel would be to deny everything people around the globe. Israel has es- people, those who have resisted oppres- America holds sacred and vital. We not tablished a thriving economy, a world- sion for thousands of years. The story only have to hold to our commitment, class education system, and has ad- of Israel is a passionate history of the but we must use our influence around vanced scientific and technological in- capacity of human beings to remain the world to encourage other nations novation on numerous fronts. The dis- true to ideals, to overcome the longest to move in that direction. tinguished Senator from Minnesota odds, to realize a dream in the midst of and I have talked many times about those who wish to deny it. This commitment dictates that we the issue of health care. It is striking Over a century ago, Theodore Herzl remain vigilant and watchful over to see the Israelis in such an innova- put into writing his vision for a free these Iranian threats. I expect the tive, focused kind of way look to Jewish state. His immortal words: ‘‘If United States to lead the way and use health care improvements that are you will it, it is no legend,’’ personified its influence over other countries that going to be of great use, not just to the the deep faith of the Jewish people and may undermine these nonproliferation people of Israel but to many around the their heritage and their role on this efforts. For this reason I was very dis- world. In 60 years, Israel has truly es- planet. Both the United States and appointed by the administration’s in- tablished itself as a global leader and a Israel were founded on the hope and sistence in signing a nuclear coopera- vital partner in the international com- promise of being ‘‘a light unto na- tion agreement with Russia. I have munity. tions,’’ and this is a principle that de- written, along with Senator BAYH, a It is a great honor to be able to stand fines us and binds us together. letter to the President signed by 32 today on the Senate floor to recognize For this reason, I believe the anni- Senators from both parties in which we the 60th anniversary of the State of versary of the State of Israel encom- state that taken together, Russia’s op- Israel. I look forward to continuing the passes much more than the rebirth of a position to effective U.N. sanctions close and indispensable partnership be- nation. As a person of Jewish heritage against Iran’s nuclear weapons pro- tween our country and Israel. Today I and a public servant, this milestone gram, its ongoing assistance to Iran’s wish the people of Israel the greatest has special significance for me. It re- ballistic missile programs, its exports success, the greatest happiness, and es- minds me not just of the added sense of of fuel to Iran’s Bushehr reactor, and pecially peace for the next 60 years and responsibility to work for justice and its increasingly abrasive foreign pol- beyond. peace, but of the lesson to never give icy, all give us cause for concern with- Mr. COLEMAN. Mr. President, a up in my pursuit of those ideals, no out finalizing such an agreement. birthday is an occasion that allows a matter the size of the obstacle. Submitting a 123 agreement with family to focus on one of its members But in Israel’s existence, there is also Russia to Congress at this time could and celebrate what is unique and spe- a lesson of what we are called to pur- severely undermine our policy with re- cial about that person. It is time to re- sue. The Jewish people have withstood spect to Iran at a critical juncture. flect on major challenges met and much persecution through the years Iran’s testing of advanced centrifuges major fulfillments achieved. The same and endured some of the most horrific could significantly reduce the time it is true when we celebrate the birth of crimes against humanity that the would take to reduce highly enriched a nation, or perhaps more appro- world has ever seen. It is our responsi- uranium for a nuclear weapon. We priately today, its rebirth. bility to remind the world what hu- urged the President not to send the The modern State of Israel is 60 years manity is capable of if we do not re- agreement to Congress until Russia has old today. But the idea of Israel was main vigilant and fight ignorance and ended support for Iran’s ballistic mis- born at the dawn of recorded history. injustice wherever it emerges. sile program and stopped providing ad- Students of the Bible know that Israel Even today, after 60 years of inde- vanced conventional weapons and as- was originally a person—the father of pendence and 7 wars fought to preserve sistance to Iran’s nuclear fuel cycle 12 children who became the Twelve it, Israel continues to face grave program. Russia must also cooperate

VerDate Mar 15 2010 10:41 Dec 08, 2010 Jkt 069102 PO 00000 Frm 00010 Fmt 0686 Sfmt 0634 E:\BR08\S08MY8.000 S08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD 8100 CONGRESSIONAL RECORD—SENATE, Vol. 154, Pt. 6 May 8, 2008 with us to increase meaningful eco- ferent. I know how often he spoke of it As the only Holocaust survivor ever nomic pressure on Iran to end its defi- to me. And I think it was impossible elected to the Congress, Tom knew ance of the United Nations Security for anyone to go through the Nurem- what Israel’s existence meant for Jews Council’s mandatory resolutions to berg Trials without wondering, at some the world over, and no one advocated suspend its enrichment of uranium. point or another: more strongly than he did for contin- Improving our commercial ties to What if those 6 million had some- ued U.S. support for Israel. Russia may be a national interest. It place to go; what if there had been a The fact that the Israeli foreign min- may be good economically for the country to take them in—no questions ister, Tzipi Livni, spoke at his memo- United States and for Russia, but pre- asked; what if there had been a nation rial service here in the Capitol speaks venting Iran from acquiring nuclear willing to stand up for them when no not only to Tom Lantos’s personal weapons is a national interest of great- one else did? commitment to Israel, but also to the er importance on which we cannot Only 2 years after my father came broader commitment of Israel and the compromise. back from Nuremberg, 60 years ago United States to each other as nations When I reflect on Israel at 60, I am today, that nation was born. So in a and as people. excited about Israel’s future, despite small way, I share some of my past It is a commitment that we must not the ever-present challenges. As David with Israel, because my father had his abandon. Ben-Gurion said in the early days of part in the events that proved—at the The United States must remain en- the modern Israeli nation, ‘‘Around price of tremendous pain—the neces- gaged diplomatically to ensure that here, if you don’t believe in miracles, sity of a Jewish state. My father the process begun last fall in Annap- you’re not a realist.’’ learned that necessity, and I learned it olis, the most recent in a string of The Jewish people truly understand through him. In the years since, noth- U.S.-led Middle East peace initiatives this concept, as there are many mir- ing has dampened the force of that les- stretching back over 30 years, con- acles that have come together to pre- son. How could I forget? tinues to move forward. serve the Jewish people throughout For nearly 60 years America and We must work with other countries history, including the one that brought Israel have been two nations that can and the United Nations to prevent Iran the modern State of Israel into exist- look across the gulf of history and from gaining the ability to develop nu- ence. The anniversary of this miracle space and language, and still see, in clear weapons that could threaten should be a joyous one, and the fact each other, themselves. That enduring Israel’s security. that Israel has now stood firm for 60 bond is what we celebrate today, Mr. We must provide appropriate assist- years should be celebrated. President. ance to the Palestinian Authority to America should thank God for the Mr. DURBIN. Mr. President, I am enable it to secure its own territory heritage of freedom Israel has given us. pleased today to speak on the 60th an- and strengthen its democratic institu- On this day, America should reaffirm niversary of the founding of the State tions. its resolve to protect and sustain the of Israel, and to congratulate the And we must find a way to stop weap- place and the people who have given us Israeli people on this historic occasion. ons from making their way into the It is also an appropriate occasion to so much. The gift Israel needs from us Gaza Strip and the hands of those who note the close and unwavering friend- on its birthday is our gratitude, to be seek to do Israel harm. ship our two countries have enjoyed sure, but also our renewed, unshakable Such continued U.S. engagement is over the past 60 years. commitment to keeping those ancient imperative if there is any hope for President Harry Truman formally dreams and ideals that we share alive. long-term peace between Israel and its recognized Israel just 11 minutes after Mr. DODD. Mr. President, it is an neighbors. the new country’s independence procla- honor to come to the floor today to cel- But hope is the foundation on which mation. Eleven minutes. That is per- ebrate Yom HaAtzmaut, Israel’s 60th Israel was built. haps the fastest that anything has ever Independence Day. It is what enabled people of so many occurred in this city. Today, on its 60th birthday, we recog- Fast doesn’t necessarily mean easy, backgrounds and languages to speak nize that Israel remains an island of though, and President Truman was with a common voice. openness. Its success belongs to all the under a great deal of pressure, includ- It is what enabled them to bring Israeli people and is more lasting than ing from his own State Department, water to a desert and grow crops where anything that ever happened on a bat- not to support the creation of a Jewish there had only been sand. It is what continues to lead the tlefield. state. With politics that are open and vi- But Harry Truman did the right and Israeli people forward, 60 years after its brant, markets that are free and fair, courageous thing, and for the past 60 founding. and laws that hold for weak and strong years, Israel has been one of America’s I share that hope for a brighter fu- alike, for six decades, America has closest friends and allies ture—for Israel, for the United States, been a good friend to Israel. Indeed, it That friendship has persevered, in and for our enduring friendship. only took us but 11 minutes to recog- part because of our dedication to many Congratulations to Israel on its 60th nize this new state, this new ally, in common values. birthday. May 1948. Israel has a strong and vibrant demo- Mr. FEINGOLD. Mr. President, I am This is a matter imbued with great cratic tradition, and a prosperous and pleased to mark the 60th anniversary personal meaning to me, Mr. President. innovative free-market economy. of the founding of the modern State of As my colleagues are aware, my father, In fact, Israel’s economy grew faster Israel. On this momentous occasion, we Tom Dodd, spent over a year as execu- last year than that of the United celebrate a vibrant nation that has tive trial counsel in one of the most re- States, Europe, the U.K. or Japan. thrived since its founding in 1948 under markable court cases the world has Such growth stems in part from more the most difficult circumstances. ever seen—the Nuremberg Trials of than 3,000 hi-tech companies now oper- Founded in the aftermath of the Holo- Nazi war criminals. He stood face-to- ating in Israel. caust as a home for Jews around the face with men who committed the most And, I believe, Israel is committed to world, Israel continues to be a beacon terrible atrocities imaginable. Indeed, achieving peace with its neighbors. But and a rare outpost of freedom and de- they were so horrible many were con- peace requires security, and the United mocracy in a region that knows too lit- vinced they had could not have taken States still has a very important role tle of either. As we take the time to ac- place—that is, until my father set out to play to make both of these a reality. knowledge the importance of this anni- meticulously proving that they had. The late Congressman Tom Lantos— versary, we should also remember It would have been impossible to be whom we lost at the beginning of this those who lost their lives in the fight- unchanged through that confrontation year—understood this perhaps better ing that coincided with the birth of with evil, and my father was no dif- than anyone. this nation. Few, if any, nations have

VerDate Mar 15 2010 10:41 Dec 08, 2010 Jkt 069102 PO 00000 Frm 00011 Fmt 0686 Sfmt 0634 E:\BR08\S08MY8.000 S08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD May 8, 2008 CONGRESSIONAL RECORD—SENATE, Vol. 154, Pt. 6 8101 had such difficult births and have over- friends around the world my best wish- friendship and cooperation between the come such tremendous challenges. es and the hope for continued pros- United States and Israel. This is a fit- As we celebrate the anniversary of perity. ting tribute to Israel’s past, and we all one of our strongest allies, the struggle Mr. LEVIN. Mr. President, the 2000 hope that our nations’ mutual goodwill for peace and stability throughout the year search for a Jewish homeland con- augurs well for future positive and Middle East continues. Peacemaking in cluded on May 14, 1948, with the dec- peaceful developments in Israel, in the this region is no easy task, but we need laration of an independent State of Middle East and around the world. to nurture the progress developed dur- Israel. But, the birth of Israel on that Mr. BOND. Mr. President, I rise ing the Annapolis Summit and keep day was far from easy. Prime Minister today joining my colleagues in con- working toward a two-state solution David Ben-Gurion made his first radio gratulating our friends in Israel as that resolves the decades of turmoil broadcast the following day from an air they celebrate the 60th anniversary of Israel and its neighbors have endured. I raid shelter as the precarious new na- their independence and modern-day am hopeful that through a continuing tion came under attack. founding. dialogue and diligent efforts, we will Even as a war was being launched Sixty years ago, Missouri’s own see a breakthrough that improves trust against their young nation, Israel’s President Harry S. Truman signed the and cooperation between all actors and founding father took the time to re- telegram making the United States the provides a framework for a lasting mind the first citizens of Israel what first Nation on the Earth to recognize peace. had been accomplished and what it officially the State of Israel. Since The United States and Israel have a would take to defend their dream. Ben- that time, Israel and the United States unique relationship that both Ameri- Gurion said, ‘‘whatever we have have stood side by side on many issues cans and Israelis cherish. Today, we achieved is the result of the efforts of and have shared common bonds and should celebrate that relationship, earlier generations no less than our values that unite us still today. which is as strong and deep as ever. own. It is also the result of an unwav- I daresay that no country has faced Mr. MARTINEZ. Mr. President, I join ering fidelity to our precious heritage, such adversity and strife during such a my colleagues in recognizing Israel’s the heritage of a small nation that has short period of time. Our staunchest Independence Day—the day Jewish peo- suffered much, but at the same time ally in the region has persevered ple around the world rejoiced after gen- has won for itself a special place in the against enemy invasions, random ter- erations of political and religious per- history of mankind because of its spir- ror attacks, and saber rattling secution. Exactly 11 minutes after it, faith, and vision.’’ throughout its short existence and has Israel’s first Prime Minister, David- The United States has played a crit- grown stronger as a result. Ben Gurion, announced the nation’s ical role in the development of Israel As a Member of this body, I have independence, the United States be- over the past 60 years. President Harry been proud to support joint U.S. and came the first nation in the world to S. Truman, the first head of state to Israeli programs aimed at strength- recognize it. grant Israel diplomatic recognition, ex- ening our mutual defense and coopera- Since that time, Israel and the pressed its special place in the hearts tion. We are engaged in a war against United States have forged a friendship of Americans as he declared, ‘‘I had a common enemy that seeks to further based on shared ideals and common faith in Israel before it was established, its agenda through suicide bombings, values—a commitment to political and and I have faith in it now. I believe it the targeting of innocents, and the de- religious freedom, the rule of law, has a glorious future before it—not just struction of the civilized world. The democratic governance, and the preser- another sovereign nation, but as an United States and Israel recognize that vation of individual rights. During my embodiment of the great ideals of our without freedom, respect for human first official trip abroad as Senator, I civilization.’’ This special partnership rights, and liberty, we are lost. traveled to Israel and saw firsthand the which began with Israel’s creation has Today, I congratulate and offer my sacrifices Israeli people make to pro- been repeatedly tested since 1948. The sincere thanks to the people of Israel tect these principles. This visit helped United States has been steadfast in our for being our ally during trying times me better understand the urgent need commitment to helping the people of and a friend upon whom we can always for sustainable peace in the Middle Israel develop their own economy and count. East and Israel’s vulnerability within secure their own peace. We have helped Mr. President, I yield the floor, and I the region. give them the time that their founding suggest the absence of a quorum. The United States shares Israel’s de- fathers knew was needed to secure The ACTING PRESIDENT pro tem- sire to protect their thriving democ- their future. pore. The clerk will call the roll. racy, and we honor our commitment by A decade ago, in celebration of The assistant legislative clerk pro- supporting security efforts in Israel. Israel’s 50th anniversary, I traveled ceeded to call the roll. Mr. DODD. Mr. President, I ask unan- Since 1948, Israel has been a reliable there for an international conference of imous consent that the order for the and steadfast ally to the United States, Jewish legislators from around the quorum call be rescinded. and our support helps to ensure the se- world. In our discussions, I saw then The ACTING PRESIDENT pro tem- curity of its territory and citizens. A that the philosophy that was embraced pore. Without objection, it is so or- strong and healthy relationship with by Ben-Gurion and other visionary dered. Israel is critical to the endurance of de- leaders helped Israel become a dynamic Mr. DODD. Mr. President, may I in- mocracy in the greater Middle East democracy with a thriving economy. In quire what is the business before the and the United States will continue to the decade since that conference, Israel Senate? stand with Israel to ensure its survival, has come within a few breaths of a f peace and prosperity. peace agreement and also experienced I extend my greetings to all those episode after episode of violence car- CONCLUSION OF MORNING taking part in celebrations to mark ried out against its civilians. Still, BUSINESS this historic week for Israel. In my Israel’s faith and fortitude remain as The ACTING PRESIDENT pro tem- home State of Florida, the home to strong today as they were when the pore. Morning business is closed. thousands of individuals of Jewish de- dream was realized six decades ago. f scent, today is especially important. It In recognition of Israel’s remarkable marks the day a permanent home was history, I was pleased to be a cosponsor FLOOD INSURANCE REFORM AND established for a people who suffered of S. Res. 522, which the Senate unani- MODERNIZATION ACT OF 2007 tremendously for generations because mously passed late last month. The The ACTING PRESIDENT pro tem- of their ethnicity and religious beliefs. resolution acknowledges the 60th anni- pore. Under the previous order, the So during this momentous time, I versary of the founding of the State of Senate will resume consideration of S. offer the people of Israel and its many Israel and reaffirms the bonds of 2284, which the clerk will report.

VerDate Mar 15 2010 10:41 Dec 08, 2010 Jkt 069102 PO 00000 Frm 00012 Fmt 0686 Sfmt 0634 E:\BR08\S08MY8.000 S08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD 8102 CONGRESSIONAL RECORD—SENATE, Vol. 154, Pt. 6 May 8, 2008 The assistant legislative clerk read minute vote. We will try to deal with What this amendment does is re- as follows: several amendments and then have a quires FEMA and the Small Business A bill (S. 2284) to amend the National period of voting before considering the Administration to withhold any Fed- Flood Insurance Act of 1968, to restore the fi- second tranche of issues. eral flood disaster payments and assist- nancial solvency of the flood insurance fund, I know Senator SHELBY is in the vi- ance to people who have not purchased and for other purposes. cinity. We are here to entertain these flood insurance. These are people who Pending: proposals. reside in a 100-year flood plain zone, Dodd/Shelby amendment No. 4707, in the Mr. President, I suggest the absence meaning that catastrophic flooding is nature of a substitute. of a quorum. expected to occur once every 100 years. McConnell amendment No. 4720 (to the text The ACTING PRESIDENT pro tem- These are known as special flood haz- of the bill proposed to be stricken by amend- pore. The clerk will call the roll. ard areas. ment No. 4707), of a perfecting nature. The bill clerk proceeded to call the Owners of properties in these flood- Allard amendment No. 4721 (to amendment roll. No. 4720), of a perfecting nature. prone areas are already required by law Landrieu/Nelson (FL) modified amendment Mr. COBURN. Mr. President, I ask to have flood insurance. Yet what we No. 4706 (to amendment No. 4707), to improve unanimous consent the order for the have seen is, time and time again, they the Office of the Flood Insurance Advocate. quorum call be rescinded. do not have it. So, in effect, even Nelson (FL) amendment No. 4709 (to The PRESIDING OFFICER (Mr. though there is a requirement for flood amendment No. 4707), to establish a National BROWN). Without objection, it is so or- insurance to be there, they do not have Catastrophe Risks Consortium and a Na- dered. it, so the cost, in terms of disasters, tional Homeowners’ Insurance Stabilization Mr. COBURN. What is the pending Program. goes up for the Federal Government. business of the Senate? The whole purpose behind this bill in DeMint amendment No. 4711 (to amend- The PRESIDING OFFICER. Amend- ment No. 4707), to require the Director to the first place, when it was first initi- conduct a study on the impact, effectiveness, ment No. 4710 to S. 2284. ated, was to lessen the cost of the and feasibility of amending section 1361 of AMENDMENT NO. 4716 TO AMENDMENT NO. 4707 American taxpayer in terms of disas- the National Flood Insurance Act of 1968 to Mr. COBURN. I ask unanimous con- ters so owners of properties in these include widely used and nationally recog- sent that amendment be set aside and flood-prone areas are required by law nized building codes as part of the flood plain amendment 4716 be called up. management criteria developed under such to purchase flood insurance if they The PRESIDING OFFICER. Without have a federally backed loan. This section. objection, it is so ordered. The clerk DeMint modified amendment No. 4710 (to amendment would simply ensure that amendment No. 4707), to end the premium will report. the law is enforced. subsidy for any property purchased after the The bill clerk read as follows: I know this is a hard amendment be- date of enactment of this act. The Senator from Oklahoma [Mr. COBURN] cause what we think about is what The ACTING PRESIDENT pro tem- proposes an amendment numbered 4716 to about those bad actors, what about amendment No. 4707. pore. The Senator from Connecticut. those who do not—what we are doing to Mr. DODD. Mr. President, I wish to Mr. COBURN. I ask unanimous con- them. But actually we ought to think inform my colleagues we are open for sent the reading of the amendment be in the positive, that if, in fact, you are business. I know there are amendments dispensed with. supposed to have flood insurance and The PRESIDING OFFICER. Without that Members have they would like to you do not, how do we ever force every- objection, it is so ordered. be considered. I am more than happy, body to do that unless there is a con- The amendment is as follows: with my colleague, the ranking mem- sequence? The consequence ought to (Purpose: To require persons located in flood ber, Senator SHELBY, to try to consider prone areas to hold flood insurance as a be, if you did not follow the rules of those amendments and deal with them condition for receiving federal disaster as- purchasing flood insurance when you expeditiously. sistance) lived in a 100-year flood plain zone, a Last evening, we entered a unani- At the appropriate place, insert the fol- high-risk area, then you are asking the mous consent agreement which re- lowing: rest of the taxpayers not only to re- quires that all amendments be offered, SEC. lll. DISASTER ASSISTANCE. build your home but to also give you debated, and voted on by the close of No person shall be eligible to receive dis- the benefit of not paying a premium on business today. The close of business aster assistance under the Robert T. Stafford flood insurance. Those people in those today can occur any time between now Disaster Relief and Emergency Assistance areas are actually taking advantage of and midnight. I suspect most Members, Act (42 U.S.C. 5121 et seq.) or the Small Busi- the rest of the American taxpayers if, knowing there may not be any votes ness Act (15 U.S.C. 631 et seq.) relating to in fact, they do not follow the law. tomorrow—I forget exactly what the damage to a property located in a 100-year floodplain caused by flooding, unless prior to So this is simply saying: OK, here is leader said about that. I think there is such flooding that person purchased and the law. You have a federally backed a possibility of no votes tomorrow de- maintained flood insurance for that property mortgage. Your mortgagor is supposed pending on the schedule and agenda. If under the national flood insurance program to require that—as a matter of fact, it that is the case, if we deal with these established under chapter I of the National was fixed in 1994, I believe, that if you amendments between now and the Flood Insurance Act of 1968 (42 U.S.C. 4011 et do not, they would. What we have seen early part of the afternoon, we can seq.). in the last disasters is the owner did complete the business of this bill until Mr. COBURN. First of all, let me not, and the mortgage backer did not. next week when we will have votes on compliment the chairman and ranking Consequently, we had a large number energy issues before final passage of member on this bill. They have made of people who had no flood insurance. the flood insurance bill. some tremendous strides in trying to Now, all this amendment says is, OK, Again, I am willing and anxious to fix this program. The one thing we we are putting you on notice right now, consider the amendments. I know sev- have not done is we have not asked if you have a federally backed mort- eral people have amendments. They of- people in this country, who are in gage and you are in a flood plain zone fered some of them last evening and de- flood-prone areas, to actually be re- and you do not have flood insurance, bated them to some degree. So we are sponsible. We are going to get about $17 you do not get the disaster relief. You prepared to enter into a little more de- billion and charge it to our grandkids do not get the grant. You do not get bate and get to some votes. My idea is, because we have to get rid of some debt what everybody who follows the rules to satisfy the convenience of Members, because the insurance program had not gets. to try to consider three or four of these done in the past what we intended it to The problem with not accepting this amendments and then hold a period of do. I believe you have fairly well fixed amendment is we will undermine the 45 minutes or so to vote on three or that for the future—my hope is that rest of the flood insurance program, four items at a time rather than bring you have. I am not convinced of that the very good work that the chairman Members over every half hour for a 15- yet. and ranking member did on this bill,

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because if there is no consequence to amendment would markedly strength- SHELBY pointed out, and achieve great- not following the law, not buying in- en what this bill is trying to accom- er actuarial soundness in a program surance, why will anybody buy the in- plish. My hope would be that in con- that is in desperate need of that. surance? In other words, if we are still ference, if you do not like my lan- The bill does something else. In fact, going to pony up the money, what is guage, you at least put something into we voted on it last evening. I believe the incentive to get them to do that? I the bill that will have some teeth that Senator LANDRIEU and Senator DORGAN know the chairman and the ranking forces good behavior and forces those offered an amendment that would have member are concerned about that. who own the properties to actually stripped out the mandatory require- Some statistics are real important. have some responsibility for the prop- ments of people being required to pay On the repetitive loss properties, what erties. I am not against us helping to premiums if they live in these high- we know is that 1 percent of the prop- create an insurance market. I am not risk areas. That amendment was de- erties in this country over the last 15 sure this is the best way to do it. But feated pretty soundly here. It is less years account for about 34 percent of we have certainly made big strides to than a dollar a day, about $316, I think, all of the expenditures. In other words, improve the bill. to a maximum of $350 a year under our they have been damaged time and time AMENDMENT NO. 4716 WITHDRAWN bill for about 350,000 dollars’ worth of again. And the chairman and the rank- I ask unanimous consent to withdraw coverage: $250,000 for the property, ing member have done a good job in the amendment. $100,000 for contents. terms of addressing how we fix that in The PRESIDING OFFICER. Without The House bill actually goes out a bit the outyears. But when one-third of objection, it is so ordered. higher. Senator VITTER wanted to raise the money goes for 1 percent of the The amendment (No. 4716) was with- that number. Senator SHELBY and I op- homes, something is very wrong. drawn. posed that amendment. I am not un- All this amendment is designed to do The PRESIDING OFFICER. The Sen- sympathetic to Senator VITTER’s sug- is to bring them forward so we lessen ator from Alabama is recognized. gestion in certain high-cost areas that this amount. More than 50,000 of these Mr. SHELBY. Mr. President, I want $250,000 ought to be a bit higher. repetitive loss properties have flood to respond to the Senator from Okla- But the point Senator COBURN is coverage right now but 61,000 do not; homa and commend him for his efforts making is that we want to get people 61,000 of the repetitive loss properties in this area. here to contribute. We have 25 percent have no flood insurance right now. What Senator DODD and I and other of the claims that are coming from So how do we make them do it? Members, including the Presiding Offi- these risky areas where only 1 percent Where is the teeth to make them do it, cer at the moment, who is involved in of policies are actually being paid. So other than to know that next time, un- banking issues and insurance, and so one out of every four dollars that is less they have flood insurance, they are going out for coverage under the flood not going to get the benefit the rest of forth, know is that this flood insurance insurance program is in these areas, the American taxpayers get in terms of program is bankrupt, as does the Sen- and yet less than 1 percent of the pre- helping them out of a jam. Ultimately, ator from Oklahoma. It is not working. miums are being paid out of those what this does is it incentivizes us to And what we are trying to do is move areas. have people take risks that would not it toward an actuarially sound basis. So, clearly, if you are going to be ac- otherwise take risks because they The Senator’s suggestion is some- tuarially sound, you get that many know we have their back. All this thing I think we ought to consider as claims out of that area, you have to amendment says is, be an adult; par- we move along down the road because get more compliance. How do you do ticipate in carrying some of the risk. we want to make sure nobody beats the So when over 50 percent of the repet- system. In other words, the more peo- that? Our bill does not go as far as Sen- itive loss properties have no flood in- ple who are involved in the flood insur- ator COBURN’s does, but in our bill we surance, I would like to know how we ance program, proper mapping is going require, as we do under a lot of similar are going to get them to get it under to mean lower premiums to everybody. areas, that the banks be required to this bill if there is no teeth to make And the problem, in the long run, as we collect these premiums, in fact, even them do it. have catastrophes, tornados, hurri- hold them in escrow so we have a bet- Now, I have every intention, as I canes, earthquakes—well, in this case ter assurance that we are going to get have spoken to the chairman and the floods and water—that the insurance a lot more compliance with that ap- ranking member, of withdrawing this would take care of it rather than proach. amendment. But my hope would be thinking, as the Senator from Okla- But I am certainly sympathetic to that in conference you would address homa says: Well, I do not have to in- the goals of ensuring that we get as this incentive issue because I believe sure you; the Government, the tax- much compliance as possible, and how right now there is a large incentive not payer, the people will take care of me you do that is a legitimate debate. I to insure their property because we in the end. appreciate his raising the issue. have their back and there is no hard I think that is what we are trying to The PRESIDING OFFICER. The Sen- penalty to do that. prevent. I think the Senator from ator from Oklahoma. If in fact I have a home and it is one Oklahoma has a very good point. Mr. COBURN. Mr. President, I thank of the repetitive loss properties and I I yield the floor. Senator DODD. I think when you fixed do not buy flood insurance, we have a Mr. COBURN. Mr. President, I sug- this in 1994 or 1997 is when you required hurricane or a storm and it is damaged gest the absence of a quorum. the banks on the mortgage to have a and I know I can still get it fixed, why The PRESIDING OFFICER. The notice and pay it and then add to it. am I going to buy the flood insurance? clerk will call the roll. But it obviously was not enough teeth Especially, let’s say, I do not have a The bill clerk proceeded to call the to get us up to where we need to be. So loan on it. Let’s say I am down there. roll. I think we need something stronger I am in a very high risk area. I do not Mr. DODD. Mr. President, I ask unan- than that. have any loan on it and, to me, I know imous consent that the order for the Overall—and this is no reflection on if I get a flood, no problem; the Govern- quorum call be rescinded. the good work that has been done on ment is going to back me up. The PRESIDING OFFICER. Without this bill but we have to ask ourselves— So what we are doing is sending a objection, it is so ordered. we are talking about $30 billion with signal to the people basically who have Mr. DODD. Mr. President, in response this bill. That is going to actually go no mortgage: The rest of the American to Senator COBURN’s earlier comments, against the Treasury. We are going to people are going to insure you for your I thank him for his courtesy in with- have $17 billion that we are going to flood. And I do not think that is right. drawing the amendment. He is raising kiss off. We are going to say the people I will ask unanimous consent to a very legitimate issue about how we who are living in these flood-prone withdraw the amendment. I think the get greater compliance, as Senator areas, because their insurance did not

VerDate Mar 15 2010 10:41 Dec 08, 2010 Jkt 069102 PO 00000 Frm 00014 Fmt 0686 Sfmt 0634 E:\BR08\S08MY8.000 S08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD 8104 CONGRESSIONAL RECORD—SENATE, Vol. 154, Pt. 6 May 8, 2008 truly reflect—we did not have it spread controlled by myself and Senator I yield the floor. broadly enough, $17 billion of it we can- COBURN or our designees. The PRESIDING OFFICER. The Sen- not pay back, so we are going to for- The PRESIDING OFFICER. Without ator from Connecticut. give that. objection, it is so ordered. Mr. DODD. Mr. President, I thank Well, what does forgiving that mean? Mr. COBURN. I would like to make the Senator. Let me underscore the What that means is we are going to one more point. Politics is politics, but point that, some 23 years ago, I was a take the money from the Treasury, we in the realm of politics the long term is new Member of this institution sitting are not going to charge it to the Na- what is getting ready to happen in this in that last chair over in the corner, tional Flood Insurance Program, but country because we are on an and I offered a pay-as-you-go budget. I someone is going to have to pay that unsustainable course. I believe we have think I got 24 votes in 1983 or 1984. I off. And who is going to pay that off? It to be guardians for the future. And I have strong feelings about whether we is going to be our kids. And there is al- believe in waiving the pay-go rules we will be accountable and whether we most $9 billion in interest that is going are not doing that; that we are not a pay for what we want to do. My col- to be not paid off, so we are going to guardian for the future. league from Oklahoma certainly raises charge that to our kids. Then there is If you think about $30 billion, you a point I have raised for as long as I another $3 billion still, I understand, to are asking every person in this country have been here and tried legislatively come from the Katrina-Rita-related this year to pay an extra $100 because to insist upon some accountability in storms in terms of payments that are this program was not funded and ar- how we do things. With this program, also going out. ranged properly. obviously the problem we are in is by So what we are going to have is $30 What we also ought to consider is attaching these additional costs onto billion, because the program was not making sure we never do this again. the premium cost today, we make it actuarially sound in the past, that now And I would hope that when and if this prohibitive for a lot of people. So we were faced with a choice which was not we are saying to our kids and budget point of order is waived the one I would have preferred. But we grandkids we are going to make actu- chairman and ranking member will put have ourselves in a position in this arially sound, and they are going to something in the bill that prohibits us country today where we are spending pay. from going back and ever waiving debt almost that amount of money every So what we are doing with this bill— for this program again. month on the conflict in Iraq, and we and, again, it is not an indictment. You He wants it actuarially sound, I know are not paying for it, something Harry made a lot of headway, but there has to that. I know the ranking member Truman would not have tolerated. In be another way to fix this rather than wants it actuarially sound. But it is the war in Korea, he said we would go charge it to our kids. So when you take truly unfair, when we spend $28,500 per to Korea provided the American tax- this $30 billion, on top of the 10 we have household at the Federal Government payer was willing to pay for it. now and the $74 trillion that is coming, level and the median income in this country is $42,000 and we are already Every 8 weeks we are accumulating a we have a significant debt in terms of debt and passing it on to my 3-year-old. spending 70 percent of that at the Fed- being fair to the next generation. This The Senator knows I have young chil- eral Government level and a third of it bill underlies and forgives all the debt dren. Every 8 weeks we are asking my we are not paying for, we are bor- to the Treasury, and it translates into daughter to assume the financial re- rowing from our children, to add on an- roughly $30.2 billion. That is how poor- sponsibility of this conflict. In addition other $30 billion. What we are talking ly the program worked in the past. to this program, we are trying to make about is opportunity. We don’t want to Again, I think we have made major a difference in people’s lives, where be tough enough now to not take op- improvements to the bill. But I believe they may lose their homes and their portunity away from our kids. So the it is important enough for us to vote life’s possessions. That is certainly one choice is, can we have what we want on whether we want to send another $30 I would like to see us account for, but billion toward our kids rather than now and it not hurt our children. The we are facing a situation today where I make people who have homes in flood- fact is, we can’t. We are hurting our have to try and move this along. But I prone areas who are getting the benefit kids when we borrow, when we forgive would hope that on a whole host of from it pay for a portion of the cost. this money. What we should be charg- these issues, where we are talking Mr. President, I make a point of ing this money to is to the people who about deficit financing or financing order that the substitute amendment have benefited from the coverage. That things without paying for them, that violates section 201 of S. Con. Res 21 of is who ought to be paying for it. That we would apply the same standards so the 110th Congress and ask for the yeas is who got the flood insurance at a we have this kind of uniformity to our and nays associated with that, accord- falsely low rate. My hope is that we concerns. And certainly, the $2 billion ing to however the chairman would think long term, not short term. I every week, the $12 billion every like to schedule votes. know you have done that to a great ex- month, the $24 to $30 billion every 2 I know he will make a motion to tent in the bill. But my hope is that months is another example of what waive the point of order. That is ex- somehow when you are in conference, happens when we ask the American pected. But I would like to have a vote that you might put some type of prohi- taxpayer in the future to assume a re- on that, if I could. bition of ever waiving the debt again, sponsibility. It is a legitimate point Mr. DODD. Mr. President, pursuant to force the program to always be actu- the Senator raises. I identify with it. to section 904 of the Congressional arially sound. If we could do that, we In my tenure, I have tried to do some- Budget Act of 1974, I move to waive the would not ever get to this point again. thing about it. Hopefully, we have done applicable sections of that act for the I know the chairman doesn’t want us that, Senator SHELBY and I. consideration of the pending amend- to get to where we are waiving this I appreciate his kind comments ment, and I ask for the yeas and nays. debt again, which will force the flood about our effort in this bill to put this The PRESIDING OFFICER. Is there a insurance program to be on the same program on the kind of footing that sufficient second? footing as every other insurance com- never causes us to come back here There appears to be a sufficient sec- pany. again under similar circumstances and ond. I thank the chairman and ranking make a similar request for excusing a The yeas and nays are ordered. member for taking two of my amend- responsibility that FEMA had to bor- Mr. DODD. I ask unanimous consent ments, one a study on reinsurance. The row from the Federal Government to that the vote on the motion to waive reinsurance we have right now is the meet that $17 billion worth of obliga- the Budget Act with respect to the American taxpayer. That is who is tions after the storms of 2005, which Coburn budget point of order occur at going to do the reinsurance this time devastated a good part of the country. 12 noon today, with 2 minutes of debate of $30 billion. I am appreciative that At the appropriate time, we will have prior to the vote equally divided and they considered this and accepted it. a vote on the Senator’s motion. In the

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The Sen- reasonable hour this afternoon that prohibitive level. ator from Oklahoma. would allow Members to meet their So I am moving to waive this point of Mr. COBURN. I want the record to travel obligations. In the absence of order the Senator from Oklahoma is show I voted against the last supple- that, we may be here until very late making, with the full understanding mental because it was not paid for. No. this evening, which I know will throw that it is a legitimate point he is mak- 2, it had $27 billion of extraneous a monkey wrench into people’s plans. ing. But if we are going to succeed with spending that was not paid for either We are here. We have been here. We this program and get it done, we can’t that was offered by the Appropriations will be here. But we have been in a do otherwise. We will be stuck with a Committee. It has to start somewhere. quorum call waiting for Members to program that will be far too costly. I am OK with it starting with me. I come over with their ideas. Coming With that, I urge my colleagues to don’t earmark anything back to Okla- around 4 or 5 this afternoon and won- support us on the motion to waive. homa. I look at every appropriations dering whether we are going to leave 15 The PRESIDING OFFICER. The Sen- bill and see if it is wise. So con- minutes later is not going to happen. I ator from Oklahoma is recognized. sequently, I vote for few appropriations urge Members now to be here and make Mr. COBURN. Mr. President, this is a bills because they are not wise, with their case or let us know that you great choice. We can prove to the the waste that is in the Federal Gov- don’t intend to offer the amendment, American people we either really care ernment. in which case we can clear the decks about the budget or not. This violates One final point. According to GAO, and get to the few votes we have re- pay-go rules. We shouldn’t send $30 bil- IGs, and the Congressional Research maining and move on. One way or the lion to our grandkids. We ought to Service, we have $300 billion of waste a other, we are happy to accept. take it from some of the excess we year in the Federal Government. The I suggest the absence of a quorum. The PRESIDING OFFICER. The have today. Congress didn’t do anything about it. I agree Senator DODD and Senator We have plenty of ways to pay for the clerk will call the roll. The bill clerk proceeded to call the SHELBY have done a good job on this, war, pay for this, and do other things, roll. but I don’t think our grandchildren if we do the hard work of oversight and Mr. NELSON of Florida. Mr. Presi- ought to pay because we designed a make the hard choices about dent, I ask unanimous consent that the program in 1977 and modified it in 1994 prioritizing what is important. But we order for the quorum call be rescinded. and it still doesn’t work and then have find that very difficult to do as a body. The PRESIDING OFFICER. Without them pay $40 billion. We ought to en- I am worried that we find that because objection, it is so ordered. force the pay-go rules, and we ought to we are not thinking long term. We are AMENDMENT NO. 4709 WITHDRAWN come up with another way to pay for thinking short term. Mr. NELSON of Florida. Mr. Presi- this money. I yield the floor and suggest the ab- dent, I ask unanimous consent to with- I thank the Chair. sence of a quorum. draw amendment No. 4709. I yield the floor. The PRESIDING OFFICER. The The PRESIDING OFFICER. The The PRESIDING OFFICER. The clerk will call the roll. amendment is withdrawn. question is on agreeing to the motion The bill clerk proceeded to call the Mr. NELSON of Florida. Thank you, to waive the point of order under sec- roll. Mr. President. tion 201 of S. Con. Res. 21 against the Mr. DODD. I ask unanimous consent AMENDMENT NO. 4707 Dodd substitute amendment. that the order for the quorum call be The PRESIDING OFFICER. There The yeas and nays are ordered. rescinded. will now be 2 minutes of debate equally The clerk will call the roll. The PRESIDING OFFICER. Without divided on the motion to waive. objection, it is so ordered. The legislative clerk called the roll. Who seeks time? Mr. DURBIN. I announce that the Mr. DODD. Mr. President, I made Mr. DODD. Mr. President, I should this point about an hour ago. We all Senator from New York (Mrs. CLINTON) begin. and the Senator from Illinois (Mr. are familiar with what happens toward The PRESIDING OFFICER. The Sen- OBAMA) are necessarily absent. the end of the week here. I know Mem- ator from Connecticut is recognized. bers are asking me what time we will Mr. DODD. Mr. President, let me Mr. KYL. The following Senators are be adjourning. That is a leadership de- first of all say on this motion by our necessarily absent: the Senator from cision, obviously. But we are required colleague from Oklahoma that Senator Arizona (Mr. MCCAIN) and the Senator from Virginia (Mr. WARNER). now, under the unanimous consent SHELBY and I, and I believe most of us agreement of last evening, that all here, don’t have a philosophical dis- The PRESIDING OFFICER. Are there amendments will be considered by the agreement. I think we all appreciate any other Senators in the Chamber de- close of business today. As I pointed the fact that we have ourselves in a sit- siring to vote? out earlier, that close of business could uation where we have massive deficits The yea and nays resulted—yeas 70, occur at any point between now and that are growing by the hour. We have nays 26, as follows: midnight. But I suspect most Members seen it in a number of areas. This is [Rollcall Vote No. 121 Leg.] are making plans to probably head one in which we are actually forgiving YEAS—70 back to their respective States for a debt. Obviously, to do so, it is going Akaka Carper Inouye Mother’s Day weekend sometime late to require at some point for us to pay Alexander Casey Johnson this afternoon or early evening. If you Allard Cochran Kennedy for this debt and obligation. Senator Baucus Coleman Kerry have amendments on this bill, I urge COBURN says we ought to be doing that Bayh Collins Klobuchar you to come to the floor and offer under the pay-go rules. As someone Bennett Corker Kohl them. Coming over at 3 o’clock, there who has over the years authored, in Biden Cornyn Landrieu Bingaman Dodd Lautenberg is no guarantee that you are going to fact, legislation requiring pay-as-you- Bond Dole Leahy have the opportunity to make the case go proposals, I am very sympathetic to Boxer Durbin Levin on behalf of the proposal, to the extent this idea. I would like to see us apply Brown Feinstein Lieberman you would like. Bunning Hagel Lugar it more uniformly in many ways. Byrd Harkin Martinez I urge Members on both sides to come Senator SHELBY and I are doing our Cantwell Hatch McCaskill to the floor. I appreciate the fact that best to take this program, which is ab- Cardin Hutchison Menendez

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Mikulski Salazar Stevens (2) SOURCE OF FUNDS.—The Director shall flood insurance program under this title as Murkowski Sanders Tester compensate each injured party for damages of the date of enactment of this subsection.’’. Murray Schumer Vitter resulting from the Fernley flood from the Nelson (FL) Sessions Mr. DODD. Mr. President, we have a Webb permanent judgment appropriation under Nelson (NE) Shelby window here. I see Senator THUNE and Whitehouse section 1304 of title 31, United States Code. Reed Smith Wicker (c) INSURANCE AND OTHER BENEFITS.—The he has the possibility of offering his Reid Snowe Wyden Roberts Specter Director shall reduce the amount to be paid amendment. I think Senator BOXER Rockefeller Stabenow to an injured party relating to the Fernley wants to express herself on that. She NAYS—26 flood by an amount that is equal to the total may be on her way over. If my col- of insurance benefits (excluding life insur- league from South Dakota is prepared Barrasso Domenici Isakson ance benefits) or other payments or settle- Brownback Dorgan to offer his amendment, or talk about Kyl ments of any nature relating to the Fernley Burr Ensign Lincoln it, that would be helpful. Anybody else flood that were paid, or will be paid, to that Chambliss Enzi McConnell who has amendments who would like Coburn Feingold Pryor injured party. Conrad Graham (d) ACCEPTANCE OF AWARD.—The accept- to offer them—I see the Senator from Sununu North Dakota. Craig Grassley Thune ance by a injured party of any payment Crapo Gregg Voinovich under this section shall (excluding claims re- Mr. DORGAN. Mr. President, I ask DeMint Inhofe lating to life insurance benefits)— the Senator from Connecticut, how NOT VOTING—4 (1) be final and conclusive as to any claim many amendments are remaining on of that injured party relating to damages Clinton Obama this bill, based on what he knows at McCain Warner suffered because of the Fernley flood; and this time? (2) constitute a complete and full release of Mr. DODD. I am glad the Senator The PRESIDING OFFICER. On this all claims of that injured party relating to vote, the yeas are 70 and the nays are the Fernley flood against the United States, clarified that. We have about five or 26. Three-fifths of the Senate duly cho- the State of Nevada, Lyon County, Nevada, six, based on what I know. There will sen and sworn having voted in the af- the City of Fernley, Nevada, and the Truck- be five or six votes at the most, as of firmative, the motion is agreed to. ee-Carson Irrigation District. now. Mr. DODD. Mr. President, I move to (e) REGULATIONS.—Not later than 90 days Mr. DORGAN. I am still trying to de- reconsider the vote and I move to lay after the date of enactment of this Act, the termine whether I can successfully Director shall promulgate and publish in the that motion on the table. offer an amendment. I know I have a Federal Register interim final regulations to right to offer it, but whether it is suc- The motion to lay on the table was carry out this section. cessful—— agreed to. Mr. ENSIGN. Mr. President, I yield The PRESIDING OFFICER. The Sen- Mr. DODD. That is the Senator’s the floor. problem. ator from Nevada is recognized. The PRESIDING OFFICER. The Sen- AMENDMENT NO. 4734 Mr. DORGAN. Mr. President, let me ator from Illinois is recognized. make a point again to the Senator Mr. ENSIGN. Mr. President, I send an AMENDMENT NO. 4715, AS MODIFIED amendment to the desk and ask unani- from Connecticut and see if there is Mr. DURBIN. Mr. President, I ask any mutual understanding on these mous consent that the pending amend- unanimous consent to set aside the ment be set aside. issues. pending amendment and I call up To use one example, we had a city The PRESIDING OFFICER. Is there amendment No. 4715, as modified. objection? that was completely evacuated in my The PRESIDING OFFICER. Is there State by a flood 10 years ago—actually Without objection, it is so ordered. objection? The clerk will report. 11 years ago now. It was the largest Without objection, it is so ordered. evacuation of any city since the Civil The assistant legislative clerk read The clerk will report. as follows: War. A city of 50,000 was completely The legislative clerk read as follows: evacuated because of a flood. In the The Senator from Nevada [Mr. ENSIGN], for The Senator from Illinois [Mr. DURBIN] himself and Mr. REID, proposes an amend- middle of that flood, there was a fire in proposes an amendment numbered 4715, as downtown Grand Forks, ND. A city ment numbered 4734 to amendment No. 4707. modified, to amendment 4707. Mr. ENSIGN. Mr. President, I ask that was flooded and evacuated was on Mr. DURBIN. Mr. President, I ask fire. unanimous consent that reading of the unanimous consent that reading of the amendment be dispensed with. In the intervening 10 years, there has amendment be dispensed with. been a flood protection plan, a very ex- The PRESIDING OFFICER. Without The PRESIDING OFFICER. Without objection, it is so ordered. pensive one, $416 million, built to pro- objection, it is so ordered. tect that city. The residents of that The amendment is as follows: The amendment is as follows: (Purpose: To provide compensation to the city, I believe, paid 45 percent of the On page 11, line 11 after the first period, in- cost of that flood protection plan. citizens of Fernley, Nevada damaged by sert the following: the failure of the Truckee Canal) As I read title VII—I believe it is on ‘‘(h) USE OF MAPS TO ESTABLISH RATES FOR page 9 of the legislation—what is being At the appropriate place, insert the fol- CERTAIN COUNTIES.— lowing: ‘‘(1) IN GENERAL.—Until such time as the said now is this city that has a 250-year SEC. ll. FERNLEY FLOOD COMPENSATION. updating of flood insurance rate maps under flood plan, that is to protect against a (a) DEFINITIONS.—In this section: section 19 of the Flood Modernization Act of 250-year flood, will be told: By the way, (1) COVERED PERSON.—The term ‘‘covered 2007 is completed (as determined by the dis- you residents, yes, you paid a lot of person’’ means a United States citizen, an trict engineer) for all areas located in the St. money for flood protection. It is blue alien lawfully admitted for permanent resi- Louis District of the Mississippi Valley Divi- ribbon, first rate, first class protection dence, the City of Fernley, Lyon County, a sion of the Corps of Engineers, the Director against a 250-year flood, but we have shall not— person that is not an individual, or a school now decided you have to ante up $1 a district. ‘‘(A) adjust the chargeable premium rate (2) FERNLEY FLOOD.—The term ‘‘Fernley for flood insurance under this title for any day to buy flood insurance. flood’’ means the breach of the Truckee Irri- type or class of property located in an area They are going to ask the question: gation Canal on January 5, 2008, and subse- in that District; and What is this flood protection we paid quent flooding of the City of Fernley, Ne- ‘‘(B) require the purchase of flood insur- for? We were told this was blue-ribbon vada. ance for any type or class of property located flood protection. I know you have a (3) INJURED PARTY.—The term ‘‘injured in an area in that District not subject to 250-year flood protection levee; now we party’’ means a covered person that suffered such purchase requirement prior to the up- want you to buy flood insurance. damages resulting from the Fernley flood. dating of such national flood insurance pro- Is there anything in the legislation (b) COMPENSATION AND SOURCE OF FUNDS.— gram rate map. (1) COMPENSATION.—Each injured party ‘‘(2) RULE OF CONSTRUCTION.—For purposes that allows FEMA to look at this situ- shall be eligible to receive from the United of this subsection, the term ‘area’ does not ation, here is a levee that gives 100- States compensation for damages suffered as include any area (or subdivision thereof) year protection, here is a levee that a result of the Fernley flood. that has chosen not to participate in the gives 250-year protection, and here is

VerDate Mar 15 2010 10:41 Dec 08, 2010 Jkt 069102 PO 00000 Frm 00017 Fmt 0686 Sfmt 0634 E:\BR08\S08MY8.000 S08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD May 8, 2008 CONGRESSIONAL RECORD—SENATE, Vol. 154, Pt. 6 8107 one that doesn’t give any at all? We Senator from Connecticut will agree with this is that it be risk based be- have different kinds of insurance. those residual risks are different in dif- cause there will clearly be a different Would FEMA be allowed to take a look ferent circumstances. I am not sug- risk attached to someone who has a at a new state-of-the-art, blue-ribbon, gesting if you are behind a levee, wher- brand new levee system that they ex- 250-year flood protection device and ever that levee is, you shouldn’t have hausted themselves paying for over the say those folks don’t need to buy flood to buy flood insurance. But I am sug- last 10 years. It is all done. They cut insurance, they just paid a substantial gesting if you exhausted yourself and the ribbon, they celebrated, they had portion of the cost of a significant new your community and your region pro- the town band out, in fact, but they are flood protection device? ducing a state-of-the-art flood control told by FEMA: That is not a factor. I ask the Senator from Connecticut, plan and spent a lot of money doing so, Mr. DODD. I think we are on the what is his intention with respect to including your own money, and you are same page. that provision of the law? now told you have a 250-year protec- Mr. DORGAN. Let’s see if we can Mr. DODD. Mr. President, first, I tion, that when somebody from FEMA craft something between now and the thank my colleague from North Da- comes in and says, it doesn’t matter a end of the day. I would not offer the kota. I am familiar with the commu- bit, it is irrelevant you built that, it amendment; the Senator from Con- nity. As my colleague will recall, at his doesn’t matter, you are going to be re- necticut will offer it, and it represents invitation, I gave the commencement quired to purchase what our friends our combined views about this issue. address at the University of North Da- from the committee have now en- I appreciate my colleague having this kota a few years ago and arrived a day acted—if my colleague from Con- colloquy. or so early. I had an opportunity to necticut is saying this legislation ei- Mr. DODD. I thank my colleague. It visit the mayor and actually see the ther will or, as we might want to is a very good suggestion; once again, a city that went through that remark- change it, could allow FEMA to take a very good suggestion. able devastation of flood and fire, si- look at that brand new 250-year flood The door is open for business. If any- multaneously, in fact, and the rather protection plan and say, in this cir- one has amendments, we would like to remarkable recovery and great spirit cumstance you have minimal require- have Members come over and offer the that exists in that community. ments—— amendment. In the meantime, I sug- Here is what we are doing. There are Mr. DODD. I think it is a very good gest the absence of a quorum. those who believe if you have any kind idea and suggestion and one about Mr. DORGAN. Mr. President, will the of a dike, dam or levee, that you should which I have not had a chance to get Senator withhold? not have to pay for flood insurance. We into a long conversation with Senator Mr. DODD. Yes, I withhold. cannot tolerate that in a sense. We SHELBY. I like the concept, the idea. Mr. DORGAN. Mr. President, I ask have 130 dams, levees, and dikes that Remember this. The insurance pro- for 5 minutes in morning business. are at great risk of one kind or another gram, putting aside whether you think The PRESIDING OFFICER. Without in these residual risk areas. About 25 the cost is high or low, without the in- objection, it is so ordered. percent all the claims against the flood surance program, and if things don’t OIL AND GAS PRICES insurance program come out of these work and you lose your home, there is Mr. DORGAN. Mr. President, I wish residual risk areas, not the coastline. no program of Federal disaster relief to make a point. I don’t know yet if Clearly, having dikes, levees, and dams that rebuilds your home. there is a markup this afternoon of the help. What the insurance program does for Appropriations full committee. If there The fact is, the reason there is a $316 a year is it gives you a chance to is, I am intending to offer a couple dike, levee or dam is because it is in a rebuild your home and the contents amendments to that markup. I wish to residual risk area. Anything made by you lose. There is no disaster relief describe one amendment that I plan to man or nature, there is no guarantee in program the Senator from North Da- offer, and that relates to dealing with perpetuity it is going to survive, even kota and I have been a part of that pro- oil and gas prices. the 250 years about which we talked. vides that kind of assistance to home- The price of oil is way beyond that What better example than Louisiana. owners affected by natural disaster. which is justifiable by simple supply We spent millions of dollars on a sys- This insurance program has great and demand conditions. It is bouncing tem down there that didn’t work, ulti- value to these people who live in these around like a yo-yo up around $120 and mately. The idea of having someone areas. It is a cost but actually has a as much as $124 a barrel of oil. There is pay a maximum of $350,000 worth of in- value. I think the numbers ought to be no justification in the supply and de- surance—actually, the average cost is higher than $350,000. I live in a higher mand of oil for that price. It is dam- $316 a year. Less than a dollar a day for cost area. So a $250,000 home in my aging to the economy, and it hurts a this kind of coverage is something we State is less than the median cost of a series of industries in this country. The feel is dispersing that risk, bringing home. I would like to see those values airline industry and trucking industry the cost in for the program. go up again. I presume in North Da- are just two examples. It hurts every Let me say to my colleague from kota $250,000 may be more a median American as they pull up to the gas North Dakota, he makes an interesting cost of a home. pump to figure out where they are point. We are, in fact, in discussions The idea that you are going to get for going to get the money to pay for the with the other members of the com- that $316 a year $350,000 back to rebuild gasoline price. mittee on this very point, where you that home of yours has value. I think What is happening? At the moment, a might be able to prorate, it seems to prorating, based on the condition of couple of things are happening. me, some of these costs based on the dikes and levees, makes good sense. We One, we have an unbelievable bubble quality of that dam, dike or levee. I will try to work on it. of speculation in the futures market. I cannot subscribe to the notion of elimi- Mr. DORGAN. We don’t have a prob- have people say to me: That is not nating it altogether, but certainly lem with the merit and value of flood true. It is true. It is hard to justify the when you have a state-of-the-art facil- insurance. I think the program makes current price of oil given the physical ity, then as a result of that, there is sense. We have an agreement, as it is elements of the market today. What we less of a risk. There still is risk. So you currently written, and I hope we can have is people entering the commod- may bring down the cost of that risk. perhaps modify it in a managers’ ities futures market that have no in- We are negotiating about doing that amendment. On page 9, section 7, it ap- terest in buying oil. They buy oil and as a way to recognize those kinds of pears to me FEMA would be required sell it. They never take possession of contributions. So there would be some to come in and say: Ah ha, you are be- it. They buy what they will never get prorating. hind that levee; therefore, you must from people who never had it. They are Mr. DORGAN. I understand the no- purchase this insurance. I hope what making money on both sides of the tion of residual risk, and I think the the Senator from Connecticut intends transaction because they are waging.

VerDate Mar 15 2010 10:41 Dec 08, 2010 Jkt 069102 PO 00000 Frm 00018 Fmt 0686 Sfmt 0634 E:\BR08\S08MY8.000 S08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD 8108 CONGRESSIONAL RECORD—SENATE, Vol. 154, Pt. 6 May 8, 2008 To put it plainly, they are gambling. hands, mop our brow, gnash our teeth tries. How many casualties? The big in- That is speculation. We have an orgy of and say there is not much anybody can tegrated oil companies go to the bank speculation on the futures market. do. This is a time for us to try to figure with a ‘‘permagrin.’’ They can’t stop We had people testify in the Senate out what is happening and try to re- smiling because they are depositing and House that it adds $20 to $30 to a spond to it. It is doing great damage to our money in their bank accounts. But barrel of oil. Should we sit back and our economy. it is not only the big integrated oil watch a bubble develop and say, In the longer term, I believe that companies, it is the OPEC countries. ‘‘Whatever the consequences, that is there are things we need to do. We are They are going to the bank everyday fine?’’ The answer is no, of course, we unbelievably dependent on overseas oil. with our money because we recycle should not. Buy stock on margin and it We are unbelievably dependent on this money to provide for a bank ac- will cost you a 50-percent margin re- Saudi Arabia, Kuwait, Iraq and Ven- count for the Saudis and others just quirement. If you want to buy oil on ezuela. Sixty percent of our oil comes like we do for the major integrated margin in the futures market for crude from offshore. As I described before and companies. oil, then you pay 5 to 7 percent. others have, we stick straws in this I do not think there is any justifica- We have hedge funds neck deep in the planet and suck oil out of the planet. tion for this price. This Congress is futures market. We have investment Every day we suck out 85 million bar- prepared to act. Senator REID and oth- banks neck deep in the futures market. rels of oil. One-fourth of that has to be ers have joined together, and I am a Are they are oil experts? Do they want used in this country. part of it to deal with this issue of put- to own oil? No, they want to speculate Let me say that again. The appetite ting oil underground. We are going to on oil and make money. of oil is this: One-fourth of all the oil stop it in its tracks. I introduced a bi- The fact is, it is damaging this coun- we pull out of the planet every day is partisan bill a couple of months ago to try’s economy. We ought to wring that used in this little place called the suspension the filling of the SPR. Our speculation out of those commodity United States of America. Sixty per- entire caucus is also behind the propo- markets. We ought to be increasing cent we get from outside our country. sition. We believe it’s time to begin to margin requirements. I know it is hard Seventy percent of it is used by vehi- wring this speculation out of the fu- to do, but we ought to do that. When cles. We have a lot to do. tures markets and stop this insidious we see this kind of speculation dam- After 32 years, we finally mandated rise in oil prices. aging our country by driving up oil an increase of 10 miles per gallon in 10 While we need to move beyond oil, prices and driving up gasoline prices, years on a range of vehicles. We also right now we still need oil. There is no we ought to do something about it. need to produce more. I and three oth- question about that. We need to find Second, we are now putting oil un- ers in this Chamber got the law more, and we need to use less, to the derground right now. We are taking changed to allow us to go into lease 181 extent we can. That means more pro- sweet light crude oil off the Gulf of in the Gulf of Mexico and finally duction and more conservation. In the Mexico and sticking it underground in produce more oil and gas. Frankly, we meantime, when markets do not work something called the Strategic Petro- ought to open up more of the Gulf of and people are doing things that have leum Reserve. I think it is fine to have Mexico. That is the greatest potential no common sense at all, such as put- the Strategic Petroleum Reserve if we reserve on the Outer Continental Shelf. ting oil underground when oil is $120 a run into trouble. It is nice to have an I and three others introduced the legis- barrel, then this Congress has a respon- oil reserve. Yet, that reserve is 97 per- lation and got it passed and opened up sibility to act. We need to get things cent full. Still, this administration is lease 181. If you look at the Gulf of straight. Let’s set things right; let’s taking up to 70,000 barrels a day, every Mexico, California, and Alaska, and the stand up here on the side of the Amer- single day, and sticking it under- East Coast, the greatest potential re- ican consumer and on the side of Amer- ground. serves are in the Gulf of Mexico. ican businesses who need this energy. They say it doesn’t affect the price. We need to conserve more and One final point: In yesterday’s The Of course, it affects the price. We had produce more. We need greater effi- Wall Street Journal, they wrote one of testimony before the Energy Com- ciency for all we use, and we especially those editorials that must make those mittee that because it is a much more need to move into renewables. folks grin like Cheshire cats as they sit valuable subset of oil, called sweet I understand we have to do all of there with their gray suits on, behind light crude, that it has as much as a 10- that. At the moment and in the short horn-rimmed glasses, deciding what to percent impact on the price of oil and run, we have to take specific steps that write next in the Wall Street Journal gasoline. So, of course, it affects the will put downward pressure on prices. about the Senate. Did you see what price. John Maynard Keynes said, ‘‘In the those folks did in the Senate—DORGAN, I think it is nuts for this country to long we are all dead.’’ That is an econo- SCHUMER, and others? What they did is be taking $124 barrel of oil and saying mist talking. We can talk about the said we should put pressure on the let’s stick that underground and save long run here, but let’s also talk about Saudis because the Saudis want to buy it for a rainy day. I tell you what, it is the short run right now. precision weapons for their own secu- a rainy day these days when you have What can we do to address something rity from us. We should say that maybe to pay this price at the pump. It is a that most Americans understand is a they need to be producing more oil. Of rainy day these days when you see very serious problem? The issue is course, the Wall Street Journal had an four, five airlines go belly up because price of gasoline? I am just saying this, apoplectic seizure over that. they cannot afford the fuel. It is a and there are those who disagree with Here are the points. The Saudis are rainy day these days when truckers say me. Look at the commodities market producing 800,000 barrels a day less that we have to park the truck because and look at this orgy of speculation. than they did 2 years ago. It is not lost we can’t afford the fuel. An entire in- This is a bubble. Wouldn’t it be nice if on them what this is doing to price. It dustry is at risk. someone had looked at that bubble as is not lost on them, or it should not be, The fact is, we have to do something it built with respect to home mort- what this is doing to our country. They about it. I mentioned two things, both gages and home prices? We have seen a are pumping 800,000 barrels a day less of which are tangible and real and both lot of bubbles. We have seen the tech than they did 2 years ago and then they of which are causing this increase, at bubble. We have seen the bubble in say to this administration we wish to least a significant part, in my judg- home prices. Every bubble bursts. This buy sophisticated weapons from the ment, in the increase in the ramp-up of one will. But in the meantime, how United States because we have our the price of oil and gasoline. many additional casualties will we see strategic military concerns in our re- The President believes that there is on the side of the road? Look at what’s gion. Maybe we say to the Saudis: The not much anybody can do in the near happening with American families, United States has strategic concerns in term. This is not a time to wring our American business, American indus- our country as well. Why are you

VerDate Mar 15 2010 10:41 Dec 08, 2010 Jkt 069102 PO 00000 Frm 00019 Fmt 0686 Sfmt 0634 E:\BR08\S08MY8.000 S08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD May 8, 2008 CONGRESSIONAL RECORD—SENATE, Vol. 154, Pt. 6 8109 pumping 800,000 barrels a day less when have testified in the Senate that it But what Great River understands— you could be putting more oil on the could impact as much as 10 percent of and what that wind turbine symbol- world market? Partnerships work both the price of oil and gasoline. izes—is that clean, alternative energy ways. We know it would impact the price. represents a huge opportunity for our I am very concerned about arming Some say 70,000 barrels is not very country. the Middle East. I am going to speak much given what is used in a day. It is Great River is not alone among util- about that at some point later. But our true, 70,000 barrels is not all that much, ity companies that can see the green point to the Saudis and the point in but this is sweet light crude which is future before us. Xcel Energy, based in the Middle East was simple. If you are very different. We had an economist the Twin Cities and in Colorado, al- pumping 800,000 barrels a day less per named Dr. Verleger testify before the ready gets more than 10 percent of its day and then demand weapons from the Energy Committee and make that very power from wind. It has pledged to gen- U.S. without reciprocating then it’s point. erate 30 percent of its electricity from not going to work. This is a more important point. renewable sources by 2025 and reduce That is a long statement to say it is There are plenty of Members of the its carbon emissions by more than 20 time for us to act. Senator REID, Sen- Senate who have now joined on this. percent over the next 12 years. In fact, ator KLOBUCHAR, other Members and I I was just informed the markup Xcel was supportive of our state legis- have decided we are not going to sit starting at 2 this afternoon has been lature which put in place one of the here like potted plants. When some- canceled. This is where I was going to most aggressive renewable standards in thing is happening in the futures mar- offer this amendment, so the amend- the country. ket and when something is happening ment I expect to be able to offer will Xcel’s CEO, Dick Kelly, recently said to take oil off the supply to put it in now wait until next week. We will get that Xcel intends ‘‘to push it to the the SPR, then we have a responsibility this done. We cannot sit around and max. But it would be nice to have a to act. I intend to be a significant part allow things to happen. We have to policy at the federal level, a national of that. make things happen, good things hap- policy, so we all know what the rules If we have the markup in the Senate pen for this country and for the econ- are.’’ Appropriations Committee this after- omy. As we prepare to debate the land- I yield the floor. mark climate-change legislation that noon, I intend to offer a couple amend- The PRESIDING OFFICER. The Sen- will come before us in a few weeks, I ments at that appropriations markup. ator from Minnesota. Unfortunately, I understand it may Ms. KLOBUCHAR. Mr. President, I hope we keep these two examples in well be canceled this afternoon. ask unanimous consent to speak as in mind. Ms. KLOBUCHAR. Will the Senator morning business. Because here is what they show us: yield for a question? The PRESIDING OFFICER. Without Global climate change represents a Mr. DORGAN. I am happy to yield. objection, it is so ordered. world of challenges. But it also rep- Ms. KLOBUCHAR. I thank Senator RENEWABLE ENERGY resents a universe of opportunities—for DORGAN for his leadership in this area. Ms. KLOBUCHAR. Mr. President, I American business to develop new He was ahead of this. Before the crisis am going to speak on another topic products and technologies, for con- got to the pocketbooks of Americans, which is somewhat related to Israel’s sumers to save money on their energy he was predicting what has happened. 60th anniversary. It is about energy se- bills, for America to achieve greater He has been proactive about this. curity and climate change and the po- energy security and independence. But can the Senator talk about the tential economic value to our country. First, there is opportunity for con- strategic reserve, the petroleum re- The way it is related to Israel is this. sumers. serve? I know there is some bipartisan As we look at the fact that we spend The National Academy of Sciences support for doing this, is that correct, $600,000 a minute on foreign oil, much has estimated that American motorists for stopping putting our oil there? of that money going to countries that were able to cut their gasoline con- Mr. DORGAN. It is the case. I have we might not want to be doing business sumption by almost 15 percent annu- introduced legislation here in the Sen- with if we had a choice, Israel, like our ally as a result of the last fuel-econ- ate. Fifty-one Democratic Senators, in- country, is very interested in devel- omy standards that Congress enacted cluding Senator OBAMA and Senator oping alternative energy. If we can cut in 1975—standards that also reduced CLINTON, signed a letter to the Presi- our dependence on foreign oil, we will the emission of greenhouse gases. The dent saying stop sticking oil under- enhance our own security as well as new CAFE standards that we adopted ground for the rest of 2008. Also, a cou- Israel’s security. in December will not only further slow ple of weeks ago our Republican col- Last winter I visited the new head- the emission of greenhouse gases—but league, Senator HUTCHISON, led on a quarters of Great River Energy, one of they will also save the average con- letter to the White House saying, yes, the biggest electric co-ops in Min- sumer as much as $1,000 a year at the we agree. We ought to stop sticking oil nesota, to talk about renewable en- gas pump. underground at this time. There were ergy. We are developing the technology to 15 Republicans who sent that letter. Great River is building a new energy- take these efficiencies even further and Further, Senator MCCAIN said it was efficient office complex in the suburb they make savings at the pump even nuts to stick oil in the SPR while on of Maple Grove, MN. But what I re- greater. The opportunities lie not only the campaign trail. When you add that member best about that day is the in producing cheaper and renewable up, that is 67 people in the Senate. huge wind turbine that towers over the sources of fuel, including cellulosic That is a veto-proof majority. building, and the way its blades were ethanol, the next generation of ethanol Ms. KLOBUCHAR. How much is it ex- rotating in the January winds. This is but in making our vehicles more effi- pected to save? Is there an immediate literally in the middle of a suburban cient. Increased efficiency is perhaps impact we might expect in savings per shopping mall. our greatest opportunity to stretch a gallon? It might seem odd that a company family’s energy dollar—$4-a-gallon Mr. DORGAN. There are several would put up a wind turbine in the sub- stretches a lot further when it will views on that, but we know it is a lot urbs of Minneapolis—in fact, it has be- take your car 50 miles instead of 25. more than zero like the Administration come a landmark for the commuters The next generation of hybrid cars, as assumes. We don’t know exactly what who drive past each morning and well as the development of cars pow- the savings would be. We do know this: evening. ered by other renewable sources such If today 70,000 barrels, especially the It might seem even more odd that an as electricity or hydrogen, open a new sweet light crude—which is the most electric utility would erect that sym- world of opportunity for the American valuable subset of oil—were put back bol of green energy in front of its new consumer; an opportunity for innova- into this marketplace, then people headquarters. tive American companies to be at the

VerDate Mar 15 2010 10:41 Dec 08, 2010 Jkt 069102 PO 00000 Frm 00020 Fmt 0686 Sfmt 0634 E:\BR08\S08MY8.000 S08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD 8110 CONGRESSIONAL RECORD—SENATE, Vol. 154, Pt. 6 May 8, 2008 forefront; an opportunity to reduce our through the debate. The first was an wide, including lightbulbs, water heat- environmental impact while reducing overview, and the second one was about ers, kitchen appliances, room-insula- our dependence on foreign oil. leadership and the need to push this tion materials, and standby power. But Then there is electricity. If every country forward, to be a world leader here is what is interesting. The report American household replaced just one on this climate change issue and on warned that market forces alone, even light bulb with a compact fluorescent technology. Today, we are talking with higher energy prices, would not be bulb, the country would save $600 mil- about the possibilities of new jobs for sufficient to make the most of these lion in annual energy costs, the nation this country, for our country as a energy-efficient technologies. What is would save enough energy to light whole. required is leadership from Wash- more than 3 million homes for a year— This is also an opportunity to create ington, leadership from this Chamber, and we would prevent greenhouse gas an energy-secure future, to free our leadership from the White House, a new pollution equivalent to the emissions country from its dependence on foreign national strategy to wean the country of more than 800,000 cars, oil. We spend literally $41 million every from fossil fuels, to reduce our emis- There is also opportunity for busi- hour on imported oil, and much of the sions of greenhouse gases, and to set ness. money simply goes back to countries the stage for this new energy economy. The Safeway grocery chain decided that are not our friends. This is the heart of the climate recently to install solar panels on 23 of The Council on Foreign Relations re- change legislation that will come be- its supermarkets to provide energy for cently studied this question, and they fore us in the next few weeks: a strat- heating, cooling and electricity. said: egy to cap and reduce greenhouse gas They estimate that they will cut America’s dependence on imported energy emissions, then use a cap-and-trade their electricity costs by 20 percent increases its strategic vulnerability and con- system so that the private sector and that they will remove 12.6 million strains its ability to pursue foreign policy achieves these reductions in the most pounds of carbon emissions every year. and national security objectives. The lack of efficient way possible. The market is General Electric, one of the biggest sustained attention to energy issues is un- ready, but it needs leadership from us. corporations in the world, has moved dercutting U.S. foreign policy and U.S. na- tional security. Last year, Minnesota’s own Tom aggressively into what it calls ‘‘green Friedman had a cover story in the New But the report also concluded that a products’’ such as energy-efficient ap- York Times Magazine, ‘‘The Power of determined conservation effort could: pliances and components for wind tur- Green.’’ It should be required reading bines. Its sales of green products have Unleash remarkable forces for innovation in this country. Entrepreneurs are seeking for anyone who cares not only about doubled since 2005 to $12 billion, and the future of our environment but also the company aims for $20 billion of new ideas for products and services such as our economic future and our future na- green products sales by 2010. This is our batteries, advanced oil and gas exploration tional security. ‘‘building a fridge to the next cen- and production techniques and biofuels. By reducing our emissions of green- In the article, Tom Friedman asks: tury.’’ How do our kids compete in a flatter In my home State, the State of Min- house gases through conservation and world? How do they thrive in a warmer nesota, in the town of Starbuck, there new technology, we can reduce our use world? How do they survive in a more is a small company called Solar Skies. of imported oil and leave our country dangerous world? There are just 10 employees at Solar in a stronger international position. This is not only wishful thinking. It The answer is, in making the most of Skies, but those 10 people decided to the economic and technological oppor- take a risk, to leave their jobs, and to has worked before. Conservation initia- tunities to reduce our dependence on go to work for a place that makes solar tives enacted after the first OPEC oil fossil fuels, and the greenhouse gas pol- panels. Those employees are devoted to embargo reduced the oil intensity of lution that comes from it, we do bet- the idea that we can create a new en- our economy, saving our country the equivalent of 15 million barrels of oil ter. ergy future for all of us. They believe Friedman said that clean energy per day. Today, a comprehensive policy in their work and are now reaping the technology is going to be the next to reduce greenhouse gas emissions, in- benefits of the opportunity created by great global industry. He went on to cluding higher fuel standards for cars this new energy economy. When I vis- propose the Green New Deal, one in and trucks, development of clean alter- ited them, they actually had me jump which the Government’s role is not native sources of energy, and better en- up and down on the solar panels to funding projects, as in the original New ergy efficiency standards for buildings, show that they could withstand hail Deal, but seeding basic research, pro- can do this. damage; I am sure they would welcome viding loan guarantees where needed, the Presiding Officer from the great Look at the Chevy Volt. Two years from now, the Chevy Volt will be avail- and setting standards and incentives State of Montana to do that as well. and taxes that will spawn all kinds of Clearly, the people at Solar Skies are able for purchase. You can plug your car in, you go 30 miles, and then it new technologies. not the only ones to understand the op- We are trying to do that right now transitions over to fuel. In other words, portunity. If you look at the leading with the wind tax credit, the renewable if you are driving through Montana or indicator of American investment, ven- tax credit, for geothermal and for solar Minnesota and it is 10 below zero, you ture capital, you will find that it and other kinds of renewable energy. I are done with your 30 miles, and it is reached $2.9 billion of investments in believe this is not all about cutting not going to stop, it transitions over to green technologies last year, up 78 per- back or hunkering down, it is about fuel, and hopefully that will be alter- cent from a year earlier. seizing opportunity. Clean technology is not only the fast- native fuel. In his words: est growing portion of the venture cap- We can cut our oil consumption by as much as 35 percent by 2030—more than It’s about creating a new cornucopia of ital market, it is now the third largest abundance for the next generation by invent- category, behind only biotech and com- offsetting the oil we import from OPEC ing a whole new industry. It’s about getting puter software. today—just by putting in place these our best brains out of hedge funds and into So today we have to ask ourselves, higher fuel economy standards for cars innovations that will not only give us the Does the United States want to be a and developing clean alternative clean-power industrial assets to preserve our leader in creating the new green tech- sources of energy and better energy ef- American dream, but also give us the tech- nologies and the new green industries ficiency standards for our buildings. nologies that billions of others need to real- of the future or are we going to sit A study last year by the McKinsey ize their own dreams without destroying the Global Institute concluded that pro- planet. back and watch the opportunities pass It is about making America safer by break- us by? I am determined that we will be jected electricity consumption in ing our addiction to a fuel that is powering a leader. American homes in 2020 can be reduced regimes deeply hostile to our values. And, fi- As you know, this is my third speech by more than one-third if high-effi- nally, it is about making America the global on climate change every week up ciency measures were adopted nation- environmental leader, instead of a laggard.

VerDate Mar 15 2010 10:41 Dec 08, 2010 Jkt 069102 PO 00000 Frm 00021 Fmt 0686 Sfmt 0634 E:\BR08\S08MY8.000 S08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD May 8, 2008 CONGRESSIONAL RECORD—SENATE, Vol. 154, Pt. 6 8111 Oponents of the Lieberman-Warner pumps, CAT scans, radiation-blocking Mr. BROWN. Mr. President, I ask climate change bill say we cannot do sunglasses, GPS devices, and the little unanimous consent that the order for this because it will somehow cripple chocolate space sticks my family the quorum call be rescinded. our economy. I say we cannot afford would take when we went on camping The PRESIDING OFFICER. Without not to enact climate change legislation trips in the 1970s. That all came out be- objection, it is so ordered. because global warming will cripple cause we had a President who said we Mr. BROWN. Mr. President, I ask our economy. have a national goal, we are all part of unanimous consent to speak as in A recent economic study commis- the same Nation, and we are going to morning business for up to 10 minutes. sioned by the Pew Center on Global reach the goal. We can do the same The PRESIDING OFFICER. Without Climate Change concludes that, under thing with climate change and energy objection, it is so ordered. at least one scenario, higher tempera- independence. Mr. BROWN. I thank the Presiding tures could cut more than $100 billion Today, it is not a Russian satellite Officer and the Parliamentarian. off American economic output over the streaming across our skies that should TRADE next century, largely because of dam- galvanize our Nation into action. It is Mr. President, for the last year, 15 age to agriculture, forestry, and com- the multiplying smokestacks in China, months, 16 months, or so, as I have mercial fishing. it is the receding glaciers in Greenland traveled throughout my home State of Now, look at this. The temperature and Antarctica, and it is the rapidly Ohio, I have held 95 or so roundtables in the last 100 years is up 1 degree. rising global temperatures, and it is with small business owners, entre- That does not sound like much until being leapfrogged by countries like preneurs, workers, community leaders, you realize it has gone up only 5 de- Brazil that are now fuel independent family farmers, educators, and every- grees since the height of the ice age. because their Government put in place where I go I hear variations of the Our EPA, using data, well-founded sci- a policy for alternative biofuels. same story—about plants that have entific data, projects that tempera- But just as sputnik sparked a new closed and left for Mexico or China, and tures in the next century will go up 3 age of prosperity and opportunity, workers, often in their fifties and six- to 8 degrees. these trends can lead to opportunities ties, who have few alternatives. So this idea that we can lose $100 bil- for the strengthening of our economy Manufacturing has been devastated lion off American economic output and renewing our leadership in the over the past 5 years. Ohio has lost up- over the next century is not some far- world. In doing so, we will create a bet- wards of 200,000 manufacturing jobs flung idea, it is based on scientific re- ter economy for the next generation by since 2001, and this administration has search. Unless we can confront this developing whole new industries, which been largely indifferent. problem and confront it now, those will not only help us preserve our One of these roundtables was held in costs will simply go higher and higher. American leadership in the world but Tiffin, OH, a small manufacturing city We will also miss the opportunity for will also help to deploy technologies of about 20,000 people, an hour or so new jobs, for new products and tech- billions of others need to realize their from Toledo. A company well known, nologies, new consumer savings, and a own dreams without destroying the American Standard, a company that more responsible climate change pol- planet. makes plumbing equipment, was icy. It is a big challenge. But meeting I believe we have the responsibility bought out by an investment banking challenges is what our country does to confront a grave threat to our envi- firm from Boston in November. In De- best. Just look at history. ronment and our health. I believe we cember, they notified the workers they When the space race began with the have the opportunity to do a great were going to shut down the plant and launch of sputnik in October 1957, service to the people of this country. I move its production elsewhere. American citizens listened with indig- believe that before us now we have the A couple hundred workers lost their nation and fear as the first manmade opportunity to make our economy jobs, many of them lost big chunks of satellite, a Soviet satellite, beeped its stronger and more efficient. But it is their pension, and some of them lost way around the Earth. Yet it inspired rare that we have the opportunity to their health care. Yet the investors our Nation and its universities to make accomplish all three at once, to accom- who came in and bought American a historic investment in math and plish so many good things in one bold Standard did, of course, very well. science education. Within a decade, our stroke. This rare opportunity will Today, Ohio and its neighbors feel country tripled the number of science come before us in a few weeks when we this problem of plant shutdowns, what and engineering Ph.D.s—tripled them. take up the landmark Lieberman-War- it means not just to the workers and In 1961, President Kennedy issued a ner bill to address the challenge of their families, but what it means to challenge to our Nation: Put a man on global climate change. We must seize the communities as it relates to police the Moon by the end of the decade. We that opportunity. protection and fire protection and answered the call. On July 20, 1969, Mr. President, I ask unanimous con- teachers, as these communities are what seemed impossible became reality sent that at 2 p.m. today, the Senate badly hurt, particularly smaller cities, when Neil Armstrong took that giant resume the DeMint amendment No. and they simply cannot afford to hire leap for mankind. 4710, as modified, and that there be 20 as many police and firemen and teach- But the space program was not only minutes of debate prior to a vote with ers. a success because we put a man on the respect to the amendment, with 15 Ohio and its neighbors feel this prob- Moon before the Soviets, it also minutes under the control of Senator lem most acutely, but it is the Nation’s spurred countless other innovations in DEMINT and 5 minutes under the con- problem. Our economy cannot prosper industry. I love saying this in front of trol of Senator DODD or his designee; unless we make and sell goods as well our pages because I think they were that no amendment be in order to the as services. Yet for the past several not born when this happened. To them, amendment prior to the vote, and that years, much of our Nation’s greatest this is commonplace, but back then we upon the use or yielding back of time, engineering prowess has not gone to did not have these things. This is what the Senate proceed to vote in relation Toledo or Dayton or Youngstown but, it has spurred. It spurred industries to the amendment. instead, to Wall Street. and innovations such as weather sat- The PRESIDING OFFICER. Without Unfortunately, traditional manufac- ellites, solar technology, digital wrist- objection, it is so ordered. turing has declined as a share of our watches, ultrasound machines, laser Ms. KLOBUCHAR. I yield the floor, economy, while the manufacture of fi- surgery, infrared medical thermom- and I suggest the absence of a quorum. nancial products has become increas- eters, programmable pacemakers, sat- The PRESIDING OFFICER. The ingly important. ellite TV broadcasts, high-density bat- clerk will call the roll. When I was elected to Congress in teries, high-speed long distance tele- The bill clerk proceeded to call the 1992, our trade deficit was $38 billion— phone service, automatic insulin roll. $38 billion a decade and a half ago.

VerDate Mar 15 2010 10:41 Dec 08, 2010 Jkt 069102 PO 00000 Frm 00022 Fmt 0686 Sfmt 0634 E:\BR08\S08MY8.000 S08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD 8112 CONGRESSIONAL RECORD—SENATE, Vol. 154, Pt. 6 May 8, 2008 Today, it exceeds $800 billion. With oil protections, let’s be fair. Yes, to be kids of those workers do not get to go reaching $121 per barrel, and perhaps sure, I want to protect workers. I want to school. higher soon, the trade deficit will like- to protect communities such as Tiffin, Fair trade products mean that farm- ly only increase in the years ahead. OH. I want to protect Sandusky and ers in developing nations earn two to Leading up to the Ohio Presidential protect Lorain and protect Springfield three times more for their products, primary in March, the media focused and protect Zanesville. I want to make and those children, as I said, can get an on NAFTA, the North American Free sure those communities are not dev- education. Trade Agreement. In Ohio, when we astated by these trade agreements that Fair trade products mean workers on talk about NAFTA, we mean our over- have all kinds of protections for the flower farms across Latin America will all trade policy, be it with Mexico and largest corporate interests but very lit- be free from poisonous pesticides that Canada, or China, or Central America. tle for the environment, even less for cause death and birth defects. But the media, of course, hears only workers, and even less still to protect Fair trade products mean that work- the word ‘‘protectionism.’’ When you our food supply and our toy supply for ers in developing nations will earn think about it, that is a pretty inter- our children. more and be able to buy more from esting choice of words. On the one side We need to recast this debate. Those us—the whole point of trade. That you have proponents of free trade, of us who want to change the rules are means, obviously, increased exports for while on the other side you have what not protectionists, in spite of what U.S. businesses. many papers label as ‘‘protectionists.’’ every elitist newspaper from the New Fair trade means trade—and more of Those of us in favor of fair trade are, York Times to the Los Angeles Times it—but with a very different set of indeed, trying to protect what we be- and everything in between likes to say. rules, not this kind of protectionism to protect the drug companies and the oil lieve is important. We would like to Those of us who want to enforce trade industry and the insurance industry protect the labor standards our coun- laws and defend against bumping Chi- and the financial services, but trade try has fought so hard to establish over nese steel products are not protection- agreements with a different set of rules many decades. We would like to help ists. Those who want safe ingredients that help lift up people, both in the de- our trading partners, the developing in pharmaceuticals we import are not veloping world and in this country. world, to improve their labor stand- protectionists. Those who want to Proponents of the same failed trade ards. We would like to protect con- make sure our children’s toys coming policies of the last 15 years need to sumers in this country from defective from China—after our toy companies stop selling the trade deal with Colom- and even dangerous products. We would outsource jobs, push the Chinese sub- bia, for example, as a path to a strong- like to protect our children from toys contractors to cut costs. They cut er economy. covered with lead paint and our hos- costs by putting lead-based paint on NAFTA sent 19 million more Mexi- pital patients from tainted blood prod- toys because it is cheaper, it is easier cans below the poverty line. Today, ucts. We would like to protect the abil- to apply, it is shinier, it dries faster. there are 19 million more Mexicans liv- ity of our manufacturers to compete Yet then these products, these toys ing below the poverty line than in 1993, against foreign companies without hav- come into the United States, and the since NAFTA. CAFTA has failed—the ing to overcome trade barriers such as Bush administration has weakened Central American Free Trade Agree- currency manipulation. consumer protection laws and cut the ment—to create the thriving middle So, yes, there are things I would like number of inspectors so, because of class in Central America that pro- to protect. But so-called free traders this trade policy, this protectionist, ponents promised. are interested in protecting their inter- protect-industry-at-all-costs trade pol- The Colombia Free Trade Agreement, ests, as well. They would like to pro- icy, we have these tainted toys enter- as written, will produce the same re- tect their beef from imports. They ing the bedrooms of too many of our sults: more poverty abroad, more lost would like to protect pharmaceutical children. U.S. jobs, more small businesses in this companies, as they do. They would like Trade is not just about exchanging country closing up shop. to protect financial services. In fact, goods between countries. Trade, when The first President Bush said each trade agreements of recent years basi- done right, is about lifting workers in billion dollars—listen to this—each bil- cally are chock full of protections— the United States and lifting workers lion dollars of our trade surplus or def- protections for the financial service in- abroad out of poverty. It is about cre- icit translates into 13,000 jobs. A bil- dustries, protections for the pharma- ating new industry. It is about creating lion-dollar trade surplus creates 13,000 ceutical industry, protections for big new business. It is about creating new jobs. A billion-dollar trade deficit costs oil. jobs. It is about ensuring strong and 13,000 jobs. That is what the first Presi- In fact, NAFTA—what I hold in my thriving economies for all parties in- dent Bush said. That was back when hand is not the actual NAFTA trade volved. the trade deficit was $20 billion, $30 bil- agreement but NAFTA was about this Fair trade products—for example, lion, $40 billion. Again, think about size. NAFTA contained hundreds of coffee, tea, bananas, flowers—products that: 13,000 jobs for a billion-dollar pages of protections—protections in once relegated to specialty shelves in trade deficit or surplus. areas that go way beyond tariffs on health food stores have now found their Today, the trade deficit exceeds $800 goods. It is similar with the Colombia way into mainstream America. billion. Just do the math. The cost in trade agreement; it is also about this Costco and McDonalds have begun to jobs of this enormous increase in our size. If they were free-trade agree- promote fair trade. That is fair trade trade deficit is staggering. ments, you could have written them on where workers share in some of the It is not surprising that voters in my about this many pages: five, six pages. profits they produce for their employ- State see bad trade deals as a major All you would need is a tariff sched- ers. They know it means quality prod- factor in the destruction of our manu- ule—a schedule of tariffs we were going ucts and good business sense at home. facturing base. They know our econ- to reduce or eliminate. But, instead, In the coffee fields of Nicaragua, fair omy and they know their interests are NAFTA and the Colombia Free Trade trade products mean a bright future for undermined by that exploding trade Agreement and these others are this tens of thousands of young girls—girls deficit. They know Ohio’s problems are big. Do you know why? who often would not have been able to Colorado’s problems and Montana’s It is not just the tariff schedules. go to school, but they are able to be- problems and Massachusetts’ problems. They also have protections for the drug cause their parents—coffee farmers in They know for the past three decades industries, protections for the banks, the case of Nicaragua—are making an the historical link between rising pro- protections for the oil industry, protec- income that gives them enough, some- ductivity and rising wages has been tions for all kinds of corporate inter- times more than $1 a pound, as opposed severed. ests in every one of these trade agree- to coffee that is not fair trade where For most of my life—well, half of my ments. That is why when we talk about maybe they get only half that. The life; the first 25 or 30 years of my life—

VerDate Mar 15 2010 10:41 Dec 08, 2010 Jkt 069102 PO 00000 Frm 00023 Fmt 0686 Sfmt 0634 E:\BR08\S08MY8.000 S08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD May 8, 2008 CONGRESSIONAL RECORD—SENATE, Vol. 154, Pt. 6 8113 in this country, when workers were Mr. GREGG. Mr. President, I ask Operations Subcommittee which is the more productive, their wages went up. unanimous consent that the order for committee that deals with foreign rela- If I had a chart, you could see that. We the quorum call be rescinded. tions, with the State Department, and could map productivity, and we could The PRESIDING OFFICER. Without with funding foreign activities. There map wages. In this country, for decades objection, it is so ordered. are some very important issues which and decades and decades, this created SUPPLEMENTAL APPROPRIATIONS need to be addressed in this bill that the middle class. This is what made us Mr. GREGG. Mr. President, I rise to are not addressed. This bill has a sig- a successful economy and a successful speak briefly—not about the bill that nificant amount of money in it that democratic capitalist country—that is pending but about a bill that is will flow through the State Depart- productivity and wages would almost somewhere in one of the hallways ment which deals specifically with be parallel. around here, which is the supplemental Iraq, with Afghanistan, and to some ex- Today, particularly in the last dec- that is necessary in order to fund our tent with other issues such as Mexico. ade, that connection has absolutely troops in the field. That bill was sup- The first amendment I would have of- been severed. That has been the prob- posed to be marked up today in the Ap- fered would have been language to cor- lem in many ways with our economy. propriations Committee, but, regret- rect what is an inconceivable bureau- Wages have been flat, profits have been tably, for reasons which are not totally cratic snafu, in my opinion. That is the up, executive salaries have exploded, clear to me but which are reasonably fact that Nelson Mandela—certainly and the middle class has struggled apparent—which is that the House has one of the greatest leaders of the 20th mightily. not yet gotten its procedures in order— century, who epitomized the movement Our country has entered a period the bill was not marked up, the mark- for freedom and for equality in Africa where income inequality is at the high- up was canceled. It was supposed to but really for the world generally—is est level in 70 years. Now is the time to start at 2 o’clock. not allowed in the United States unless be asking the right questions. It is I certainly hope we will mark up this he gets a special waiver from the Sec- time to end the name calling and have bill. It is very important this bill be retary of State which allows him to a real debate about trade. We are at a subject to regular order. It is a very come into the United States because of critical juncture in our Nation’s his- significant bill, obviously, because it the fact that he was a member of the tory. It serves both sides of the trade involves funding for our troops in the African National Congress and is a debate to remember that U.S. trade field. It is significant also because a lot member of the African National Con- policy is a tool. It is not a fairy god- of other matters which are extraneous gress, having been the head of South mother. It should not be used to tem- to the issue of fighting the war and giv- Africa as that party rules there; and porarily pump up well-connected indus- ing our troops the resources they need that party, due to the history of that tries—as trade policy often is; hence, have been added to it on the House party, has been caught in the bureau- all the protections—nor should it be side, and even more, as it appears, cratic framework of our laws and is used to tamp down competitive forces. maybe even being added on the Senate designated as a potential terrorist or- Our trade policy must promote com- side. Thus, the Senate ought to have ganization, which is really ridiculous petition, build on the progress our Na- the right to work its will on the bill in on its face. The fact that Nelson Mandela cannot tion has made, and promote our Na- the regular order, which includes a come into the United States because tion’s economic and strategic objec- committee hearing where the various the organization he led, which deliv- tives rather than flouting them. issues are aired and amendments can ered freedom and equality in South Af- Ultimately, it will be ingenuity and be made. Then when it gets to the rica, has gotten this designation due to sweat equity—we know that—that en- floor, it should also be subject to its prior activity, it would be like say- ables our country to thrive in the glob- amendments so the minority, espe- ing the head of the Likud Party, which al marketplace. Like every country, we cially, can have some input on the bill. a number of Prime Ministers of Israel will have to work harder and smarter Otherwise, the minority gets written come from, because it at one time was to win every contract and every sale. out of the process, which is not con- an activist organization confronting But it is the role of governments to en- structive to the institution, and it cer- British rule in Palestine at the time, sure the rules for that contest are fair tainly means we would have to defend the head of the Likud Party would not and that the interests of everyone—not our rights and probably oppose the bill be allowed in the United States but just those we protect in our trade on those procedural grounds that we would have to receive special exemp- agreements—to ensure that everyone have an obligation—that we as a mi- tion. It makes no sense. has a stake and everyone is served by nority basically have the sacred right So this language, which the Sec- our trade policy. of making a decision as to when retary of State totally supports and Our Government has not done that. amendments are to be offered or at the Secretary of State is equally out- Our trade deficit has ballooned, our least what amendments should be raged by, would have to be changed. So manufacturing sector is faltering, and voted on. working with the State Department, real wages are falling. The last thing Relative to a major piece of legisla- we have this language together, and we we need is more business as usual. No tion such as this, we as the minority will go over it. more NAFTAs, no more CAFTAs, no should have the right to amend it. If I understand at 2 o’clock we go into more Colombia trade agreements. Busi- we decide not to amend it, that is our debate on the DeMint amendment, and ness as usual has not worked. The sta- choice, obviously. But parts of this bill I will be happy to yield the floor as tus quo is not working. Again, 151⁄2 clearly need to be subject to amend- soon as somebody arrives and wishes to years ago, the trade deficit was $38 bil- ment, and the minority has a right to debate. But I ask unanimous consent lion; today, it is $800 billion. be heard on that in the Senate, espe- to be able to continue until such indi- We need to decide what our economic cially because that is the essence of the vidual arrives. goals will be and how we achieve them. institution. The minority has the abil- The PRESIDING OFFICER. Without If we do not, we will wake up to find we ity to participate in the process objection, it is so ordered. have left a sorry legacy to our Nation, through the amendment process and Mr. GREGG. The second amendment to our communities, and to our chil- through the filibuster process. I would have offered would address the dren. So I wish to speak to some of the issue of the war on terror and our in- Mr. President, I yield the floor and amendments I would have offered had volvement with Iraq relative to the suggest the absence of a quorum. we met today which I happen to think State of Jordan, which unfortunately The PRESIDING OFFICER (Mr. are very appropriate to this bill and has found itself incurring dramatic SALAZAR). The clerk will call the roll. which are in the area of jurisdiction for costs as a result of the overflow of the The legislative clerk proceeded to which I have primary responsibility. I events in Iraq. Massive amounts of ref- call the roll. am the ranking member on the Foreign ugees are coming into Jordan. It has

VerDate Mar 15 2010 10:41 Dec 08, 2010 Jkt 069102 PO 00000 Frm 00024 Fmt 0686 Sfmt 0634 E:\BR08\S08MY8.000 S08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD 8114 CONGRESSIONAL RECORD—SENATE, Vol. 154, Pt. 6 May 8, 2008 put an extraordinary burden on that these flood maps. In other words, there The PRESIDING OFFICER. Without country, a tremendous ally and friend were many properties purchased years objection, it is so ordered. of the United States. ago when people did not know they The Senator from South Carolina. So I believe we have an obligation as were purchasing a home in a flood area. Mr. DEMINT. Mr. President, in a mo- a nation—since we created this prob- For that reason, we basically grand- ment I will ask unanimous consent to lem for Jordan in many ways by the fathered these homes in and allowed withdraw my amendment, but I wish to activity in Iraq—to support Jordan as them lower rates in the flood insurance have a little discussion on the floor it tries to address the issues of the ref- program than those who bought homes with the chairman and ranking mem- ugees. We cannot help them with the after we had designated those flood ber because for the most part, we agree physical activity of the refugees there, areas. on a lot of the principles in the bill, but we can give them resources. I was The bill addresses some of those and they would like the latitude to going to increase funding to Jordan to properties by phasing out the subsidies work some of this out in conference. accomplish that. I know Senator of nonprimary residences—those that My goal is to have a more sustain- INOUYE is also very interested in this are rental properties, second homes, able, fairer program. The idea is not to issue. and even those with severe repetitive raise the price of current premium pay- In addition, money being spent by losses. We take about 475,000 properties ers or to raise the price of real estate. the State Department in Iraq on behalf that were pre-FIRM, as we call it, or I want to ask my colleagues if they of reconstruction should be signifi- preflood map, and phase those out. would consider some of the principles cantly limited; but more important There are 700,000 permanent residences of bringing all policies eventually into than that, any new money we spend for we do not address in the bill. some actuarial equity. reconstruction through State Depart- The purpose of my amendment is to Mr. DODD. Mr. President, if my col- ment accounts should be matched one- bring all the properties, basically, into league will yield, he raises a very good to-one by the Government of Iraq. I the same plan, and not to force some to point. In fact, I had a discussion with find it inconceivable for a government pay higher premiums so we can give Senator DORGAN on a similar issue, but that runs a $30 billion or $40 billion subsidies to these 700,000 homes. My the same point of an equity interest in- surplus, on the issue of oil revenues, bill doesn’t affect the rates or the sub- volving the cost of premiums where not be asked to pony up or at least sidies of any current property owner. you have a very well-built levee and match what the American taxpayers My amendment does address new own- should the premium be the same as one are spending there relative to resources ers, if those properties are sold after with a 50-year-old levee—that is a le- to promote reconstruction in Iraq. So I this bill passes. In other words, we con- gitimate point, it seems to me. was going to offer that amendment. tinue the subsidies of current property We talked earlier with Senator I see the Senator from South Caro- owners, except for those already ad- VITTER about costs and values. We dis- lina is here. I understand this time is dressed in the bill. But if those prop- agree with him on that issue, but he correctly his. At this point, I will yield erties are sold, clearly, the new owner makes a case, as the Senator from the floor. First, I also intended to offer would know they are buying in a flood South Carolina does, that we need to an amendment in markup today which zone, so the rationale to continue sub- strike this balance well so we are not would have put a consular office in sidies up to 65 percent does not exist. locking in permanent costs, and not I remind my colleagues that if we Tibet. I think it is critical to have a also falsely contributing to a rise in allow inequities to continue, where consular office there as the Tibetan the cost of real estate in a time when some are getting subsidies and some people deal with the situation occur- we are dealing with oversupply and are not, then some residents—and one ring there relative to the Chinese Gov- trying to move properties. might be sitting next to another—are ernment crackdown. I am sympathetic with what my col- going to have a higher property value At this point, I yield the floor. league is trying to achieve. There is an because it will get lower flood insur- AMENDMENT NO 4710 equity interest he has identified that I . ance rates indefinitely, no matter how think has legitimacy. The question is, The PRESIDING OFFICER. Under many times it is sold. the previous order, there will now be 20 My amendment, again, I think would How do we satisfy that in a actuarially minutes of debate prior to a vote in re- improve the sustainability of the pro- sound program? lation to amendment No. 4170, offered gram. I encourage the ranking member I commend him for the idea. I am by the Senator from South Carolina, to consider this. I know there have grateful to him for withdrawing the Mr. DEMINT. been agreements not to add or support amendment. It gives us a chance to The Senator from South Carolina is any amendments. But I think this cap- work on it and examine it in a way recognized. tures a lot of the intent of the whole that will hopefully satisfy him. I can- Mr. DEMINT. Mr. President, I wish to bill to make the program sustainable not promise him this, obviously, be- talk about my amendment that will be and fairer, and actually my amend- cause the Senator from Alabama and I voted on in about 15 or 20 minutes. It is ment would return about $550 million have to deal with the House. I come amendment No. 4710. It is an amend- in additional premium revenues to the with an open mind to the equity issue ment to the National Flood Insurance plan over the next 10 years. So this is, he raises with his amendment. The PRESIDING OFFICER. The Sen- Program bill we are considering today. again, designed to make the program ator from Alabama. The whole purpose of the flood insur- fairer. ance bill is to improve the program, I encourage my colleagues to look at Mr. SHELBY. Mr. President, I com- make it more actuarially sound, make this amendment. It is not a partisan mend the Senator from South Carolina it more financially sustainable over amendment in any way. It will make for bringing up his amendment. I think many years. Obviously, we have had the program better and fairer and it it is something we should consider in huge problems with the program. Yet will bring everybody into the same sta- conference. Senator DODD had a col- it is very important to people all tus once properties are sold. loquy about it on the side on the floor around the country, particularly those With that, I will reserve the remain- a few minutes ago. in coastal areas. der of my time and yield the floor. At the end of the day, what we are in- One of the goals of this reform bill is I suggest the absence of a quorum. terested in is a more actuarially sound to make the rates fairer and to phase The PRESIDING OFFICER. The flood insurance program, one that will out a number of the subsidies that we clerk will call the roll. make more sense after a lot of mapping have allowed under the current pro- The legislative clerk proceeded to goes on around the country that will gram. call the roll. broaden the program and not perpet- The current program allows up to a Mr. DEMINT. Mr. President, I ask uate subsidy over and over for four or 65-percent subsidy on properties that unanimous consent that the order for five sales or four or five generations were purchased before we developed the quorum call be rescinded. where property is sold.

VerDate Mar 15 2010 10:41 Dec 08, 2010 Jkt 069102 PO 00000 Frm 00025 Fmt 0686 Sfmt 0634 E:\BR08\S08MY8.000 S08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD May 8, 2008 CONGRESSIONAL RECORD—SENATE, Vol. 154, Pt. 6 8115 The Senator from South Carolina is rial Center, which I have also visited, like this one in Kalma are dependent on the right track. I assure him I want where 250,000 Rwandans are buried in on us, the entire international commu- to pursue this in conference. mass graves. President Bush said he nity, for the basics—food, water, and AMENDMENT NO. 4710 WITHDRAWN hoped the world would ‘‘once and for shelter. It is nothing short of a human- Mr. DEMINT. Mr. President, I thank all’’ work to halt the genocide in itarian catastrophe. the chairman and the ranking member. Darfur. The U.N. Security Council voted last I trust their judgment to work this President Bush will soon be leaving summer in favor of a historic 26,000- issue out in conference. I think the bill office—less than a year from now. I member U.N.-African Union joint has made a lot of progress. fear that unless his administration peacekeeping force. Last summer, they Mr. President, I ask unanimous con- acts, and acts quickly, we will once voted for it. That brought a glimmer of sent to withdraw my amendment. again fail to stop a genocide in its trag- hope across the world that finally The PRESIDING OFFICER. Without ic march. If we want to send a message there was going to be a global response objection, it is so ordered. The amend- to the world that the United States to this terrible situation. ment is withdrawn. will not turn a blind eye to genocide, Today, almost a year later, only a Mr. DEMINT. Mr. President, I yield now is the time to act in Darfur. third of those peacekeepers have been the floor and suggest the absence of a Violence began in Darfur 5 years ago. deployed—a third. Only a third of this quorum. Since that time, I have come to the peacekeeping force is on the ground The PRESIDING OFFICER. The floor many times to talk about it. while the Sudanese Government con- clerk will call the roll. In 2004, the House of Representatives tinues to thumb its nose at the inter- The assistant legislative clerk pro- unanimously adopted a resolution call- national community and its forces con- ceeded to call the roll. ing on President Bush to call the atroc- tinue to attack villages in Darfur. Hu- Mr. DURBIN. Mr. President, I ask ities in Darfur by their rightful name: manitarian and U.N. relief workers unanimous consent that the order for a genocide. The resolution also urged face ongoing violence and harassment. the quorum call be rescinded. This photo is of a grieving mother The PRESIDING OFFICER. Without the President to consider multilat- whose children were killed in Darfur. objection, it is so ordered. eral—even unilateral—intervention. Mr. DURBIN. Mr. President, I ask That resolution passed nearly 4 years Hers is one of the thousands—hundreds unanimous consent to speak as in ago, in July 2004—4 years ago. of thousands of tragic stories. She said morning business. A few months later, Secretary of her three children had been burned The PRESIDING OFFICER. Without State Colin Powell said: alive in this region’s violence. Just the objection, it is so ordered. [G]enocide has been committed in Darfur other day, Sudanese forces were re- and that the government of Sudan and the DARFUR ported to have bombed a primary Mr. DURBIN. Mr. President, I rise Janjaweed bear responsibility and the geno- school in the north Darfur village of cide may still be occurring. today to mark the anniversary of one Shegeg Karo, killing at least seven lit- global tragedy and to call attention to In June 2005, President Bush said he tle children. another, a tragedy that is occurring agreed with Secretary of State Pow- After so many years, after so much even at this moment. ell’s determination that what was hap- violence and human suffering, after so Fourteen years ago this week, the pening in Darfur was in fact a geno- many calls for action, what is holding world stood by as 800,000 Rwandans cide. up the deployment of peacekeepers? were brutally murdered, largely along Two years later, President Bush It may be hard to believe, but one ethnic lines, in only 100 days. Despite spoke at the Holocaust Museum here in significant problem is a shortage of early warning signs and pleas for great- Washington and said that ‘‘genocide is helicopters—hard to imagine, a short- er international attention, we did little the only word for what is happening in age of helicopters, as the killing, more as a nation than watch as this act Darfur.’’ He went on to say ‘‘ . . . we looting, pillaging, raping, and displace- of genocide was allowed to continue. have a moral obligation to stop it.’’ ment continues. This tragic genocide Canadian GEN Romeo Dallaire at the Many things have been said by many has been raging for 5 years while we time was commander of a small U.N. influential people over the years, but have just stood by and watched. Yet peacekeeping force in Rwanda when little action has taken place. Five the world’s most powerful nations can- the genocide began. He desperately years after this declaration of geno- not manage to dig up a handful of heli- tried to get the United Nations to ap- cide, where do we stand? What have we copters. How can that be? Are all our prove a more robust force to end the done? As many as 400,000 residents of helicopters tied up in Iraq and Afghani- killings. Despite his efforts, the Secu- Darfur have been killed, others bru- stan? Are they all in the shop? Is there rity Council voted instead to cut back tally raped and tortured, entire vil- truly not one NATO ally that will the United Nations’ force. Nearly 2,500 lages torched, creating a refugee crisis spare a few helicopters? How about troops were replaced with 450 poorly that has forced more than 2 million asking the Russians? They are already trained and poorly equipped soldiers. Darfuris to flee their homes. helping in south Sudan and Chad. The We all know the tragic result. Today This photo is almost surreal. As Russian Ambassador visited my office the world looks back in shame at the often described, people who have flown recently and told me he is open to ex- inaction in Rwanda. We all failed. over the Darfur region say it looks as if ploring helping Darfur. It is hard to In 1998, President Clinton visited people have put cigarettes out—the imagine that the United States would Rwanda and spoke to those who lost types of burns that you see. The burns, be asking other countries to be sup- loved ones in those horrible times. of course, represent huts in villages plying helicopters, but at the risk of President Clinton said: that have been destroyed. This is a allowing this genocide to continue, we We in the United States and the world part of Sudan after the Sudanese Gov- ought to do that. community did not do as much as we could ernment and allied militia forces re- This tragedy is of historic propor- have and should have done to try to limit cently burned a village. tion, and it is our chance to step in and what occurred in Rwanda in 1994. Hundreds of thousands of women and show the world we really care. But President Clinton’s decision to visit children live in refugee camps in what it takes is Presidential leader- Rwanda was an honorable one. It was Darfur and Chad. I don’t think this ship—not in 6 months, not in a year, the right choice. His words were inspir- photo does justice to the camp, but but now. ing in their honesty and accuracy, but what appear to be tiny white dots are, I know some of my colleagues in the his words were also an important re- in fact, small tents, a sea of small Senate, ones on the floor here—Senator minder that the world cannot allow tents. There are 90,000 people who live BIDEN has raised this issue personally such a tragedy to occur again. in the Kalma refugee camp in Darfur— with President Bush. Quite simply, I President Bush visited Rwanda in no grass, no trees, 10 reported rapes want to put this in the most simple January and toured the Kigali Memo- every single day. The people in camps terms because I said it directly to the

VerDate Mar 15 2010 10:41 Dec 08, 2010 Jkt 069102 PO 00000 Frm 00026 Fmt 0686 Sfmt 0634 E:\BR08\S08MY8.000 S08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD 8116 CONGRESSIONAL RECORD—SENATE, Vol. 154, Pt. 6 May 8, 2008 President himself and to Secretary of Mr. CRAIG. Madam President, I ask volved in that. My colleagues have State Condoleezza Rice: If you are not unanimous consent that the order for heard us talk about NGNP which, of going to do anything before you leave the quorum call be rescinded. course, is a nuclear global energy part- office to stop the genocide in Darfur, The PRESIDING OFFICER. Without nership. Once again, Areva is a part of then spend a few minutes writing your objection, it is so ordered. that. speech so that a year or two from now, Mr. CRAIG. Madam President, let me Over the last year, I, my staff, and when you visit that terrible place, you also ask unanimous consent that I be the Idaho congressional delegation can say: We could have done more; I allowed to speak as in morning busi- have worked with Areva. Because they wish we would have. ness. showed interest in siting in Idaho or That is what it has come down to. The PRESIDING OFFICER. Without Washington or Ohio or New Mexico or This administration and Congress will objection, it is so ordered. Texas, we began to work with them to either act soon or, sadly, this genocide Mr. CRAIG. Madam President, I show them what Idaho had to offer, not will have occurred on our watch. thank the chairman because of the ac- only in a relationship with our na- A few years ago, President Clinton tivity we are involved in on the floor tional lab but a phenomenally talented faced the reality of his failure to act in with the legislation that he is shep- workforce that is capable of doing the Rwanda. He called it ‘‘my great, great herding at this moment. kind of work they need done. We regret in international affairs.’’ Presi- NUCLEAR ENERGY worked very closely with the office of dent Bush, this is your chance. Either Mr. CRAIG. Madam President, the Gov. Butch Otter. As a result of those do something or face a similar script reason I am speaking at this moment relationships, we began to work with and a similar speech in years to come, on the floor is that an event happened the Idaho legislature to provide an eco- expressing your regret that you, on this week in Bonneville County, ID, in nomic incentives package for this kind your watch, did not stop the genocide southeastern Idaho, that I think is sig- of development. We also worked with in Darfur. nificant not only to this Nation but ul- the Idaho Department of Commerce We cannot allow ourselves to have to timately to the world. A global nuclear and Industry, with the city of Idaho look back years from now to say that service company selected that area of Falls, ID, which has always had a very happened. We have a moral responsi- our country in my State to site a $2 positive working relationship with the National Nuclear Laboratory that is bility as a leader in the world to speak billion uranium enrichment facility on located just miles from that city. out and act to save these people. a 400-acre farm west of Idaho Falls on Those are the kinds of partnerships the I yield the floor. Mr. President, I sug- Highway 20, a location that is very State of Idaho, the City of Idaho Falls, gest the absence of a quorum. near the birthplace of global nuclear the Governor, the Idaho legislature, The PRESIDING OFFICER (Mr. NEL- power and the nuclear industry. In 1951, and the Idaho congressional delegation SON of Nebraska). The clerk will call the first light bulb was lit by nuclear were able to put together that finally the roll. power in Arco, ID. Of course, while The assistant legislative clerk pro- that is a little known historical fact, brought Areva to recognize the tremen- dous opportunity that rests in siting a ceeded to call the roll. the actual reactor itself is now a na- world-class facility such as this in our Mr. ENSIGN. Madam President, I ask tional historic location, so designated unanimous consent that the order for State. by the late President Lyndon Johnson I mentioned a moment ago and got the quorum call be rescinded. a good number of years ago. Since that unanimous consent that Colin Jones be The PRESIDING OFFICER (Ms. time forward, over 50 prototypes of nu- allowed on the floor if he chose. Colin KLOBUCHAR). Without objection, it is so clear reactors have been designed at is a fellow from the Idaho National Lab ordered. the Idaho Nuclear Laboratory and our and he worked in a very close relation- AMENDMENT NO. 4734 WITHDRAWN first nuclear plant for a submarine. In ship with this company to make sure Mr. ENSIGN. Madam President, I ask fact, I often laughingly say that out in they had all the answers when they unanimous consent that the Ensign a big bathtub in the middle of the high needed them to make this happen. amendment be withdrawn. deserts of Idaho is a nuclear sub and Now, why is all this significant? The PRESIDING OFFICER. Without that many who train to operate our nu- Right now, we are talking about cli- objection, it is so ordered. clear Navy trained in Idaho. It was be- mate change. We are talking about try- Mr. ENSIGN. Madam President, I cause of that significance and the rela- ing to rebuild an industry in our coun- suggest the absence of a quorum. tionship that Areva, this global com- try and for the world that we nearly The PRESIDING OFFICER. The pany, could have with our national lab- lost, and that is the nuclear industry. clerk will call the roll. oratory facilities that they sited this For 20 years, this country, for some The bill clerk proceeded to call the nuclear service company there and reason, grew very fearful of the idea roll. their enrichment plant. that we might advance generation of Mr. REID. Madam President, I ask Areva, the company, will employ, at electricity by new nuclear plants, and unanimous consent that the order for a peak during construction, nearly we literally stopped. In so stopping it, the quorum call be rescinded. 1,000 workers over an 8-year period. we nearly lost the industry itself and The PRESIDING OFFICER. Without When operational, the plant will em- the ability of the industry to build new objection, it is so ordered. ploy some 250 full-time workers, with a nuclear reactors, tied with generating Mr. REID. Madam President, before total annual salary of approximately facilities for electrical purposes. Along my friend leaves the floor, I express my $15 million. The plant will provide over came the growing concern of climate appreciation to my colleague Senator $5 billion to the local economy of change and the emission of greenhouse ENSIGN. This is an issue that needs southeastern Idaho over the next 30 gases and other environmental con- more work. We have spoken to the two years. cerns that caused us, in many in- managers of the bill. They are going to The enrichment plant could be the stances, to stop producing energy in try to help us. This is an issue impor- first of many nuclear partnerships that the traditional ways we had produced tant to Nevada and we think other Areva will have in the United States it. places. But I wanted to express my ap- and with Idaho. The next generation Nearly 60 percent of the energy in preciation to Senator ENSIGN, who did nuclear plant being designed at the this country is produced by coal-fired most of the work on this issue. Idaho lab right now allows and puts generation facilities. Many of those Madam President, I suggest the ab- Areva into an alliance relationship. today are emitters of CO2, and there sence of a quorum. UniStar, which some who track the nu- are some who believe it is the con- The PRESIDING OFFICER. The clear industry know about, is looking centration of CO2 in the Earth’s atmos- clerk will call the roll. at an opportunity in Idaho, and Areva phere that may be causing an increased The bill clerk proceeded to call the and Constellation and other major en- or an accelerated rate of warming of roll. ergy companies of the world are in- our globe.

VerDate Mar 15 2010 10:41 Dec 08, 2010 Jkt 069102 PO 00000 Frm 00027 Fmt 0686 Sfmt 0634 E:\BR08\S08MY8.000 S08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD May 8, 2008 CONGRESSIONAL RECORD—SENATE, Vol. 154, Pt. 6 8117 While we are trying to make those have done to accomplish this. I com- the Administrator (including an offer to re- changes, the rest of the world rushes pliment them all and wanted them to locate), including an offer of mitigation as- headlong. In fact, China is a perfect ex- be a part of the CONGRESSIONAL sistance— ‘‘(A) following a major disaster, as defined ample of bringing at least one new RECORD. in section 102 of the Robert T. Stafford Dis- coal-fired plant on line per week to I yield the floor. aster Relief and Emergency Assistance Act supply its growing energy and eco- Mr. DODD. Madam President, I ask (42 U.S.C. 5122); or nomic needs. We had always been criti- unanimous consent that there be 4 ‘‘(B) in connection with— cized for being the larger emitter of minutes of debate prior to a vote in re- ‘‘(i) a repetitive loss property; or greenhouse gas because we were 25 per- lation to Durbin amendment No. 4715, ‘‘(ii) a severe repetitive loss property, as cent of the world economy. Now, as modified; that upon the use or yield- that term is defined under section 1361A.’’. China, a country that we didn’t think ing back of the time, the Senate pro- AMENDMENT NO. 4727 would become the larger emitter for ceed to vote in relation to the Durbin (Purpose: To impose a civil penalty for non- several years, this last June measured amendment, with no amendment in compliance with certain reporting require- as the largest greenhouse gas-polluting order to the amendment prior to the ments) Nation in the world. vote. On page 50, between lines 3 and 4, insert My point is quite simple. The need The PRESIDING OFFICER. Without the following: (4) FAILURE TO COMPLY.—A property and for new environmental and clean en- objection, it is so ordered. casualty insurance company that is author- ergy technology today is absolutely AMENDMENTS (NOS. 4724; 4725; 4727; 4728, AS MODI- ized by the Director to participate in the critical, and building the infrastruc- FIED; 4730; 4733, AS MODIFIED; 4735; 4736; 4711; Write Your Own program which fails to com- ture that can supply us with abundant AND 4706, AS MODIFIED FURTHER, TO AMEND- ply with the reporting requirement under energy is even more important. MENT NO. 4707) this subsection or the requirement under If our country is going to continue to Mr. DODD. Madam President, I ask section 62.23(j)(1) of title 44, Code of Federal grow, it has to have an abundant sup- unanimous consent that the managers’ Regulations (relating to biennial audit of the ply of all sources of energy. We have amendment at the desk be agreed to, flood insurance financial statements) shall and the motion to reconsider be laid be subject to a civil penalty in an amount seen what happened just in the last equal to $1,000 per day for each day that the several months as we have watched upon the table, with no intervening ac- company remains in noncompliance with ei- prices of gas at the pump go up to the tion or debate. ther such requirement. level they are today, the shudder that The PRESIDING OFFICER. Without AMENDMENT NO. 4728, AS MODIFIED has gone out from the consuming pub- objection, it is so ordered. (Purpose: To require clear and comprehen- lic, and the political reaction in Wash- The amendments were agreed to, as sible disclosure of conditions, exclusions, ington as we chase ourselves in circles follows: and other limitations pertaining to flood trying to find an excuse to blame some- AMENDMENT NO. 4724 insurance coverage) body for the inaction of the Congress (Purpose: To study alternative approaches to At the end of title I, add the following: over the last 20 years in the area of ensure the future of the National Flood In- SEC. 133. POLICY DISCLOSURES. production and refinement and the surance Program by requiring greater effi- (a) IN GENERAL.—Notwithstanding any overall development of energy itself. ciency and financial accountability) other provision of law, in addition to any other disclosures that may be required, each The reason Areva’s decision to site a At the appropriate place, insert the fol- lowing: policy under the National Flood Insurance facility not just in Idaho but in this Program shall state all conditions, exclu- country—a uranium enrichment SEC. lll. FEASIBILITY STUDY ON PRIVATE RE- sions, and other limitations pertaining to INSURANCE. plant—is a process that is key toward coverage under the subject policy, regardless Not later than 1 year after the date of en- of the underlying insurance product, in plain building the fuel to supply a nuclear actment of this Act, the Comptroller General English, in boldface type, and in a font size reactor because that one technology of the United States shall conduct and sub- that is available today beyond wind, that is twice the size of the text of the body mit a report to Congress on— of the policy. beyond solar, to supply clean energy to (1) the feasibility of requiring the Director, (b) VIOLATIONS.—Any person that violates the market is nuclear. While Sun is as part of carrying out the responsibilities of the requirements of this section shall be sub- intermittent and solar is intermittent, the Director under the National Flood Insur- ject to a fine of not more than $50K at the nuclear reactors supply a strong base ance Program, to purchase private reinsur- discretion of Director. ance or retrocessional coverage, in addition load of electricity to the American AMENDMENT NO. 4730 to any such reinsurance coverage required grid. under section 1335 of the National Flood In- (Purpose: To provide 2 additional members While we struggle with the tech- surance Act of 1968 (42 U.S.C. 4055), to under- to the Technical Mapping Advisory Council) nologies for clean coal, while we look lying primary private insurers for losses On page 25, line 11, strike ‘‘; and’’ and in- to build other technologies, the one we arising due to flood insurance coverage pro- sert a semicolon. can build today in a very demanding vided by such insurers; On page 25, line 14, strike the period and (2) the feasibility of repealing the reinsur- insert a semicolon. energy market is nuclear. Yet in a nu- On page 25, between lines 14 and 15, insert ance requirement under such section 1335, clear conference in Chicago just this the following: and requiring the Director, as part of car- week Excelon and other companies (M) a representative of a State agency that rying out the responsibilities of the Director has entered into a cooperating technical that are major utilities said because of under the National Flood Insurance Pro- partnership with the Director and has dem- this whole new demand the price of gram, to purchase private reinsurance or onstrated the capability to produce flood in- building a nuclear reactor has doubled retrocessional coverage to underlying pri- surance rate maps; and from maybe $4 billion per single plant mary private insurers for losses arising due (N) a representative of a local government to flood insurance coverage provided by such to now $8 billion or $9 billion. agency that has entered into a cooperating insurer; and This is the bottom line: The cost of technical partnership with the Director and (3) the estimated total savings to the tax- energy is going to continue to go up has demonstrated the capability to produce payer of taking each such action described in until we bring online the technologies flood insurance rate maps. paragraph (1) or (2). and the infrastructure to supply those AMENDMENT NO. 4733, AS MODIFIED AMENDMENT NO. 4725 technologies to continue to build an On page 34, between lines 14 and 15, insert abundant energy supply for our coun- (Purpose: To deny premium subsidies to the following: try. So that is why I came to the floor homeowners who refuse to accept an offer (d) COMMUNICATION AND OUTREACH.— today to talk about what got an- of Federal assistance to alter or relocate (1) IN GENERAL.—The Director shall— their property in an effort to minimize fu- nounced in Idaho this Tuesday, and (A) work to enhance communication and ture flood damages and costs) outreach to States, local communities, and that was a world-class, $2 billion ura- On page 8, line 13, strike ‘‘and’’. property owners about the effects of— nium enrichment plant by the Areva On page 8, line 16, strike ‘‘policy.’’.’’ and (i) any potential changes to National Flood company and International Utilities. insert the following: ‘‘policy; and Insurance Program rate maps that may re- I am proud of my State and all of the ‘‘(3) any prospective insured who refuses to sult from the mapping program required people in my State for the work they accept any offer for mitigation assistance by under this section; and

VerDate Mar 15 2010 10:41 Dec 08, 2010 Jkt 069102 PO 00000 Frm 00028 Fmt 0686 Sfmt 0634 E:\BR08\S08MY8.000 S08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD 8118 CONGRESSIONAL RECORD—SENATE, Vol. 154, Pt. 6 May 8, 2008 (ii) that any such changes may have on (Amendment 4711 is printed in the ‘‘(1) assist insureds under the national flood insurance purchase requirements; and RECORD of Wednesday, May 7, 2008.) flood insurance program in resolving prob- (B) engage with local communities to en- lems with the Federal Emergency Manage- AMENDMENT NO. 4706, AS FURTHER MODIFIED hance communication and outreach to the ment Agency relating to such program; Strike section 131 and insert the following: residents of such communities on the mat- ‘‘(2) identify areas in which such insureds ters described under subparagraph (A). SEC. 131. FLOOD INSURANCE ADVOCATE. have problems in dealings with the Federal Chapter II of the National Flood Insurance (2) REQUIRED ACTIVITIES.—The communica- Emergency Management Agency relating to Act of 1968 is amended by inserting after sec- tion and outreach activities required under such program; tion 1330 (42 U.S.C. 4041) the following new paragraph (1) shall include— ‘‘(3) propose changes in the administrative section: (A) notifying property owners when their practices of the Federal Emergency Manage- properties become included in, or when they ‘‘SEC. 1330A. OFFICE OF THE FLOOD INSURANCE ment Agency to mitigate problems identified ADVOCATE. are excluded from, an area having special under paragraph (2); ‘‘(a) ESTABLISHMENT OF POSITION.— flood hazards and the effect of such inclusion ‘‘(4) identify potential legislative, adminis- ‘‘(1) IN GENERAL.—There shall be in the or exclusion on the applicability of the man- Federal Emergency Management Agency an trative, or regulatory changes which may be datory flood insurance purchase requirement Office of the Flood Insurance Advocate appropriate to mitigate such problems; under section 102 of the Flood Disaster Pro- which shall be headed by the National Flood ‘‘(5) conduct, supervise, and coordinate— tection Act of 1973 (42 U.S.C. 4012a) to such Insurance Advocate. The National Flood In- ‘‘(A) systematic and random audits and in- properties; surance Advocate shall— vestigations of insurance companies and as- (B) educating property owners regarding ‘‘(A) to the extent amounts are provided sociated entities that sell or offer policies the flood risk and reduction of this risk in pursuant to subsection (n), be compensated under the National Flood Insurance Pro- their community, including the continued at the same rate as the highest rate of basic gram, to determine whether such insurance flood risks to areas that are no longer sub- pay established for the Senior Executive companies or associated entities are allo- ject to the flood insurance mandatory pur- Service under section 5382 of title 5, United cating only flood losses under such insurance chase requirement; States Code, or, if the Director so deter- policies to the National Flood Insurance Pro- (C) educating property owners regarding mines, at a rate fixed under section 9503 of gram; the benefits and costs of maintaining or ac- such title; ‘‘(B) audits and investigations to deter- quiring flood insurance, including, where ap- ‘‘(B) be appointed by the Director without mine if an insurance company or associated plicable, lower-cost preferred risk policies regard to political affiliation; entity described under subparagraph (A) is under the National Flood Insurance Act of ‘‘(C) report to and be under the general su- negotiating on behalf of the National Flood 1968 (42 U.S.C. 4011 et seq.) for such prop- pervision of the Director, but shall not re- Insurance Program with third parties in erties and the contents of such properties; port to, or be subject to supervision by, any good faith; (D) educating property owners about flood other officer of the Federal Emergency Man- ‘‘(6) conduct, supervise, and coordinate in- map revisions and the process available such agement Agency; and vestigations into the operations of the na- owners to appeal proposed changes in flood ‘‘(D) consult with the Assistant Adminis- tional flood insurance program for the pur- elevations through their community; and trator for Mitigation or any successor there- pose of— (E) encouraging property owners to main- to, but shall not report to, or be subject to ‘‘(A) promoting economy and efficiency in tain or acquire flood insurance coverage. the general supervision by, the Assistant Ad- the administration of such program; AMENDMENT NO. 4735 ministrator for Mitigation or any successor ‘‘(B) preventing and detecting fraud and abuse in the program; and (Purpose: To modify the project for flood thereto. ‘‘(C) identifying, and referring to the At- control, Big Sioux River and Skunk Creek, ‘‘(2) QUALIFICATIONS.—An individual ap- torney General for prosecution, any partici- Sioux Falls, South Dakota) pointed under paragraph (1)(B) shall have a background in customer service, or experi- pant in such fraud or abuse; At the end, add the following: ence representing insureds, as well as experi- ‘‘(7) identify and investigate conflicts of TITLE III—MISCELLANEOUS ence in investigations or audits. interest that undermine the economy and ef- SEC. 301. BIG SIOUX RIVER AND SKUNK CREEK, ‘‘(3) RESTRICTION ON EMPLOYMENT.—An in- ficiency of the national flood insurance pro- SIOUX FALLS, SOUTH DAKOTA. dividual may be appointed as the National gram; and The project for flood control, Big Sioux Flood Insurance Advocate only if such indi- ‘‘(c) AUTHORITY OF THE NATIONAL FLOOD IN- River and Skunk Creek, Sioux Falls, South vidual was not an officer or employee of the SURANCE ADVOCATE.—The National Flood In- Dakota, authorized by section 101(a)(28) of Federal Emergency Management Agency surance Advocate may— the Water Resources Development Act of with duties relating to the national flood in- ‘‘(1) have access to all records, reports, au- 1996 (110 Stat. 3666), is modified to authorize surance program during the 2-year period dits, reviews, documents, papers, rec- the Secretary to reimburse the non-Federal ending with such appointment and such indi- ommendations, or other material available interest for funds advanced by the non-Fed- vidual agrees not to accept any employment to the Director which relate to administra- eral interest for the Federal share of the with the Federal Emergency Management tion or operation of the national flood insur- project, only if additional Federal funds are Agency for at least 2 years after ceasing to ance program with respect to which the Na- appropriated for that purpose. be the National Flood Insurance Advocate. tional Flood Insurance Advocate has respon- sibilities under this section; including infor- AMENDMENT NO. 4736 Service as an employee of the National Flood Insurance Advocate shall not be taken mation submitted pursuant to Section 128 of (Purpose: To ensure that the purchase price into account in applying this paragraph. this Act; of flood insurance polices required to be ‘‘(4) STAFF.—To the extent amounts are ‘‘(2) undertake such investigations and re- purchased in areas of residual risk accu- provided pursuant to subsection (n), the Na- ports relating to the administration or oper- rately reflects the level of flood protection tional Flood Insurance Advocate may em- ation of the national flood insurance pro- provided by any levee, dam, or other man- ploy such personnel as may be necessary to gram as are, in the judgment of the National made structure in such area) carry out the duties of the Office. Flood Insurance Advocate, necessary or de- On page 10, between lines 16 and 17, insert ‘‘(5) INDEPENDENCE.—The Director shall not sirable; the following: prevent or prohibit the National Flood Insur- ‘‘(3) request such information or assistance (3) ACCURATE PRICING.—In carrying out the ance Advocate from initiating, carrying out, as may be necessary for carrying out the du- mandatory purchase requirement under or completing any audit or investigation, or ties and responsibilities provided by this sec- paragraph (1), the Director shall ensure that from issuing any subpoena or summons dur- tion from any Federal, State, or local gov- the price of flood insurance policies in areas ing the course of any audit or investigation. ernmental agency or unit thereof; of residual risk accurately reflects the level ‘‘(6) REMOVAL.—The President and the Di- ‘‘(4) request the production of information, of flood protection provided by any levee, rector shall have the power to remove, dis- documents, reports, answers, records (includ- dam, or other the man-made structure in charge, or dismiss the National Flood Insur- ing phone records), accounts, papers, emails, such area. ance Advocate. Not later than 15 days after hard drives, backup tapes, software, audio or On page 31, after line 14 add: the removal, discharge, or dismissal of the visual aides, and any other data and docu- ‘‘(v) The level of protection provided by Advocate, the President or the Director shall mentary evidence necessary in the perform- man-made structures.’’ report to the Committee on Banking of the ance of the functions assigned to the Na- On page 10, after line 16 insert: Senate and the Committee on Financial tional Flood Insurance Advocate by this sec- (d)—upon decertification of any levee, Services of the House of Representatives on tion; dam, or man-made structure under the juris- the basis for such removal, discharge, or dis- ‘‘(5) request the testimony of any person in diction of the Army Corps of Engineers, the missal. the employ of any insurance company or as- Corps shall immediately provide notice to ‘‘(b) FUNCTIONS OF OFFICE.—It shall be the sociated entity participating in the National the Director of the National Flood Insurance function of the Office of the Flood Insurance Flood Insurance Program, described under program. Advocate to— subsection (b)(5)(A), or any successor to such

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company or entity, including any member of tional flood insurance program and respon- ‘‘(f) COMPLIANCE WITH GAO STANDARDS.—In the board of such company or entity, any siveness of the Federal Emergency Manage- carrying out the responsibilities established trustee of such company or entity, any part- ment Agency with respect to such initia- under this section, the National Flood Insur- ner in such company or entity, or any agent tives; ance Advocate shall— or representative of such company or entity; ‘‘(ii) describe the nature of recommenda- ‘‘(1) comply with standards established by ‘‘(6) select, appoint, and employ such offi- tions made to the Director under subsection the Comptroller General of the United States cers and employees as may be necessary for (i); for audits of Federal establishments, organi- carrying out the functions, powers, and du- ‘‘(iii) contain a summary of the most seri- zations, programs, activities, and functions; ties of the Office subject to the provisions of ous problems encountered by such insureds, ‘‘(2) establish guidelines for determining title 5, United States Code, governing ap- including a description of the nature of such when it shall be appropriate to use non-Fed- pointments in the competitive service, and problems; eral auditors; the provisions of chapter 51 and subchapter ‘‘(iv) contain an inventory of any items de- ‘‘(3) take appropriate steps to assure that III of chapter 53 of such title relating to clas- scribed in clauses (i), (ii), and (iii) for which any work performed by non-Federal auditors sification and General Schedule pay rates; action has been taken and the result of such complies with the standards established by ‘‘(7) obtain services as authorized by sec- action; the Comptroller General as described in tion 3109 of title 5, United States Code, at ‘‘(v) contain an inventory of any items de- paragraph (1); and daily rates not to exceed the equivalent rate scribed in clauses (i), (ii), and (iii) for which ‘‘(4) take the necessary steps to minimize prescribed for the rate of basic pay for a po- action remains to be completed and the pe- the publication of proprietary and trade se- sition at level IV of the Executive Schedule; riod during which each item has remained on crets information. and such inventory; ‘‘(g) PERSONNEL ACTIONS.— ‘‘(8) to the extent and in such amounts as ‘‘(vi) contain an inventory of any items de- ‘‘(1) IN GENERAL.—The National Flood In- may be provided in advance by appropria- scribed in clauses (i), (ii), and (iii) for which surance Advocate shall have the responsi- tions Acts, enter into contracts and other ar- no action has been taken, the period during bility and authority to— rangements for audits, studies, analyses, and which each item has remained on such inven- ‘‘(A) appoint regional flood insurance advo- other services with public agencies and with tory and the reasons for the inaction; cates in a manner that will provide appro- priate coverage based upon regional flood in- private persons, and to make such payments ‘‘(vii) identify any Flood Insurance Assist- surance program participation; and as may be necessary to carry out the provi- ance Recommendation which was not re- ‘‘(B) hire, evaluate, and take personnel ac- sions of this section. sponded to by the Director in a timely man- tions (including dismissal) with respect to ‘‘(d) ADDITIONAL DUTIES OF THE NFIA.—The ner or was not followed, as specified under any employee of any regional office of a National Flood Insurance Advocate shall— subsection (i); flood insurance advocate described in sub- ‘‘(1) monitor the coverage and geographic ‘‘(viii) contain recommendations for such paragraph (A). allocation of regional offices of flood insur- administrative and legislative action as may ‘‘(2) CONSULTATION.—The National Flood ance advocates; be appropriate to resolve problems encoun- Insurance Advocate may consult with the ‘‘(2) develop guidance to be distributed to tered by such insureds; ‘‘(ix) identify areas of the law or regula- appropriate supervisory personnel of the all Federal Emergency Management Agency Federal Emergency Management Agency in officers and employees having duties with re- tions relating to the national flood insurance program that impose significant compliance carrying out the National Flood Insurance spect to the national flood insurance pro- burdens on such insureds or the Federal Advocate’s responsibilities under this sub- gram, outlining the criteria for referral of Emergency Management Agency, including section. inquiries by insureds under such program to specific recommendations for remedying ‘‘(h) OPERATION OF REGIONAL OFFICES.— regional offices of flood insurance advocates; these problems; ‘‘(1) IN GENERAL.—Each regional flood in- ‘‘(3) ensure that the local telephone num- ‘‘(x) identify the most litigated issues for surance advocate appointed pursuant to sub- ber for each regional office of the flood in- each category of such insureds, including section (d)— surance advocate is published and available recommendations for mitigating such dis- ‘‘(A) shall report to the National Flood In- to such insureds served by the office; and putes; surance Advocate or delegate thereof; ‘‘(4) establish temporary State or local of- ‘‘(xi) identify ways to promote the econ- ‘‘(B) may consult with the appropriate su- fices where necessary to meet the needs of omy, efficiency, and effectiveness in the ad- pervisory personnel of the Federal Emer- qualified insureds following a flood event. ministration of the national flood insurance gency Management Agency regarding the ‘‘(e) OTHER RESPONSIBILITIES.— program; daily operation of the regional office of the ‘‘(1) ADDITIONAL REQUIREMENTS RELATING ‘‘(xii) identify fraud and abuse in the na- flood insurance advocate; TO CERTAIN AUDITS.—Prior to conducting any tional flood insurance program; and ‘‘(C) shall, at the initial meeting with any audit or investigation relating to the alloca- ‘‘(xiii) include such other information as insured under the national flood insurance tion of flood losses under subsection the National Flood Insurance Advocate may program seeking the assistance of a regional (b)(5)(A), the National Flood Insurance Advo- deem advisable. office of the flood insurance advocate, notify cate may— ‘‘(B) DIRECT SUBMISSION OF REPORT.—Each such insured that the flood insurance advo- ‘‘(A) consult with appropriate subject-mat- report required under this paragraph shall be cate offices operate independently of any ter experts to identify the data necessary to provided directly to the committees identi- other Federal Emergency Management determine whether flood claims paid by in- fied in subparagraph (A) without any prior Agency office and report directly to Congress surance companies or associated entities on review or comment from the Director, the through the National Flood Insurance Advo- behalf the national flood insurance program Secretary of Homeland Security, or any cate; and reflect damages caused by flooding; other officer or employee of the Federal ‘‘(D) may, at the flood insurance advo- ‘‘(B) collect or compile the data identified Emergency Management Agency or the De- cate’s discretion, not disclose to the Director in subparagraph (A), utilizing existing data partment of Homeland Security, or the Of- contact with, or information provided by, sources to the maximum extent practicable; fice of Management and Budget. such insured. and ‘‘(3) INFORMATION AND ASSISTANCE FROM ‘‘(2) MAINTENANCE OF INDEPENDENT COMMU- ‘‘(C) establish policies, procedures, and OTHER AGENCIES.— NICATIONS.—Each regional office of the flood guidelines for application of such data in all ‘‘(A) IN GENERAL.—Upon request of the Na- insurance advocate shall maintain a separate audits and investigations authorized under tional Flood Insurance Advocate for infor- phone, facsimile, and other electronic com- this section. mation or assistance under this section, the munication access. ‘‘(2) ANNUAL REPORTS.— head of any Federal agency shall, insofar as ‘‘(i) FLOOD INSURANCE ASSISTANCE REC- ‘‘(A) ACTIVITIES.—Not later than December is practicable and not in contravention of OMMENDATIONS.— 31 of each calendar year, the National Flood any statutory restriction or regulation of ‘‘(1) AUTHORITY TO ISSUE.—Upon applica- Insurance Advocate shall report to the Com- the Federal agency from which the informa- tion filed by a qualified insured with the Of- mittee on Banking, Housing, and Urban Af- tion is requested, furnish to the National fice of the Flood Insurance Advocate (in such fairs of the Senate and the Committee on Fi- Flood Insurance Advocate, or to an author- form, manner, and at such time as the Direc- nancial Services of the House of Representa- ized designee of the National Flood Insur- tor shall by regulation prescribe), the Na- tives on the activities of the Office of the ance Advocate, such information or assist- tional Flood Insurance Advocate may issue a Flood Insurance Advocate during the fiscal ance. Flood Insurance Assistance Recommenda- year ending during such calendar year. Any ‘‘(B) REFUSAL TO COMPLY.—Whenever infor- tion, if the Advocate finds that the qualified such report shall contain a full and sub- mation or assistance requested under this insured is suffering a significant hardship, stantive analysis of such activities, in addi- subsection is, in the judgment of the Na- such as a significant delay in resolving tion to statistical information, and shall— tional Flood Insurance Advocate, unreason- claims where the insured is incurring signifi- ‘‘(i) identify the initiatives the Office of ably refused or not provided, the National cant costs as a result of such delay, or where the Flood Insurance Advocate has taken on Flood Insurance Advocate shall report the the insured is at risk of adverse action, in- improving services for insureds under the na- circumstances to the Director without delay. cluding the loss of property, as a result of

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the manner in which the flood insurance ‘‘(m) DEFINITIONS.—For purposes of this AMENDMENT NO. 4715 laws are being administered by the Director. subsection: Mr. DURBIN. It is my understanding ‘‘(2) TERMS OF A FLOOD INSURANCE ASSIST- ‘‘(1) ASSOCIATED ENTITY.—The term ‘associ- that amendment No. 4715 is now pend- ANCE RECOMMENDATION.—The terms of a ated entity’ means any person, corporation, ing. Flood Insurance Assistance Recommenda- or other legal entity that contracts with the tion may recommend to the Director that Director or an insurance company to provide The PRESIDING OFFICER. The Sen- the Director, within a specified time period, adjustment services, benefits calculation ator is correct. cease any action, take any action as per- services, claims services, processing services, Mr. DURBIN. And I have 2 minutes to mitted by law, or refrain from taking any ac- or record keeping services in connection speak? tion, including the payment of claims, with with standard flood insurance policies made The PRESIDING OFFICER. Yes. respect to the qualified insured under any available under the national flood insurance Mr. DURBIN. Madam President, if I other provision of law which is specifically program. could say briefly, if you are in the described by the National Flood Insurance ‘‘(2) INSURANCE COMPANY.—The term ‘insur- Advocate in such recommendation. ance company’ refers to any property and process of remapping, for flooding pur- ‘‘(3) DIRECTOR RESPONSE.—Not later than 15 casualty insurance company that is author- poses, a watershed area, this amend- days after the receipt of any Flood Insurance ized by the Director to participate in the ment says that until you have com- Assistance Recommendation under this sub- Write Your Own program under the national pleted both sides of the river—and in section, the Director shall respond in writing flood insurance program. my case both Illinois and Missouri— as to— ‘‘(3) NATIONAL FLOOD INSURANCE ADVO- you don’t increase flood insurance ‘‘(A) whether such recommendation was CATE.—The term ‘National Flood Insurance rates for one side of the river. So the followed; Advocate’ includes any designee of the Na- ‘‘(B) why such recommendation was or was tional Flood Insurance Advocate. entire watershed has to be mapped and not followed; and ‘‘(4) QUALIFIED INSURED.—The term ‘quali- completed before any new rates apply. ‘‘(C) what, if any, additional actions were fied insured’ means an insured under cov- This will not disadvantage either side taken by the Director to prevent the hard- erage provided under the national flood in- of the river. It says they will all be an- ship indicated in such recommendation. surance program under this title. nounced at the same time. ‘‘(4) RESPONSIBILITIES OF DIRECTOR.—The ‘‘(n) FUNDING.—Pursuant to section I yield the floor. Director shall establish procedures requiring 1310(a)(8), the Director may use amounts The PRESIDING OFFICER. Who a formal response consistent with the re- from the National Flood Insurance Fund to yields time? quirements of paragraph (3) to all rec- fund the activities of the Office of the Flood Mr. DODD. Madam President, I think ommendations submitted to the Director by Advocate in each of fiscal years 2009 through the National Flood Insurance Advocate 2014, except that the amount so used in each we are prepared to vote on the Durbin under this subsection. such fiscal year may not exceed $5,000,000 amendment. ‘‘(j) REPORTING OF POTENTIAL CRIMINAL and shall remain available until expended. The PRESIDING OFFICER. All time VIOLATIONS.—In carrying out the duties and Notwithstanding any other provision of this is yielded back. responsibilities established under this sec- title, amounts made available pursuant to Mr. DURBIN. Madam President, I ask tion, the National Flood Insurance Advocate this subsection shall not be subject to offset- for the yeas and nays. shall report expeditiously to the Attorney ting collections through premium rates for The PRESIDING OFFICER. Is there a General whenever the National Flood Insur- flood insurance coverage under this title.’’. ance Advocate has reasonable grounds to be- sufficient second? There is a sufficient lieve there has been a violation of Federal Mr. DODD. Madam President, I ask second. criminal law. unanimous consent that no further The question is on agreeing to the ‘‘(k) COORDINATION.— amendments be in order except as pro- amendment, as modified, of the Sen- ‘‘(1) WITH OTHER FEDERAL AGENCIES.—In vided in the previous agreement with ator from Illinois. carrying out the duties and responsibilities respect to the McConnell and Reid The clerk will call the roll. established under this section, the National amendments; that the previous order The legislative clerk called the roll. Flood Insurance Advocate— with respect to rollcall votes on Mon- ‘‘(A) shall give particular regard to the ac- Mr. DURBIN. I announce that the tivities of the Inspector General of the De- day, May 12, be modified to reflect that Senator from California (Mrs. BOXER), partment of Homeland Security with a view the previously ordered votes occur on the Senator from New York (Mrs. CLIN- toward avoiding duplication and insuring ef- Tuesday, May 13, after the Senate con- TON), the Senator from Illinois (Mr. fective coordination and cooperation; and venes and following the opening se- OBAMA), the Senator from Washington ‘‘(B) may participate, upon request of the quence of events, there be 60 minutes of (Mrs. MURRAY), and the Senator from Inspector General of the Department of debate equally divided and controlled Homeland Security, in any audit or inves- Nevada (Mr. REID) are necessarily ab- between the leaders, or their designees, sent. tigation conducted by the Inspector General. prior to the commencement of the ‘‘(2) WITH STATE REGULATORS.—In carrying Mr. KYL. The following Senators are out any investigation or audit under this votes ordered under a previous order; necessarily absent: the Senator from section, the National Flood Insurance Advo- that prior to each vote there be 2 min- Nevada (Mr. ENSIGN), the Senator from cate shall coordinate its activities and ef- utes of debate equally divided and con- Arizona (Mr. MCCAIN), and the Senator forts with any State insurance authority trolled in the usual form; that after the from Virginia (Mr. WARNER). that is concurrently undertaking a similar first vote in the sequence, each suc- The PRESIDING OFFICER. Are there or related investigation or audit. ceeding vote be limited to 10 minutes ‘‘(3) AVOIDANCE OF REDUNDANCIES IN THE any other Senators in the chamber de- in duration; that other provisions of siring to vote? RESOLUTION OF PROBLEMS.—In providing any the previous order remain in effect; assistance to a policyholder pursuant to The result was announced—yeas 68, paragraphs (1) and (2) of subsection (b), the provided further that if cloture is in- nays 24, as follows: voked on the motion to proceed to H.R. National Flood Insurance Advocate shall [Rollcall Vote No. 122 Leg.] consult with the Director to eliminate, 980, then all postcloture time be yield- avoid, or reduce any redundancies in actions ed back, the motion to proceed be YEAS—68 that may arise as a result of the actions of agreed to, and the motion to reconsider Akaka Corker Kennedy the National Flood Insurance Advocate and be laid upon the table. Alexander Cornyn Kerry the claims appeals process described under Baucus Craig Klobuchar The PRESIDING OFFICER. Without Bayh Dodd Kohl section 62.20 of title 44, Code of Federal Reg- objection, it is so ordered. Bennett Domenici Landrieu ulations. Biden Dorgan Lautenberg ‘‘(l) AUTHORITY OF THE DIRECTOR TO LEVY Mr. DODD. Madam President, after Bingaman Durbin Leahy PENALTIES.—The Director and the Advocate the vote on the Durbin amendment, Bond Feinstein Levin shall establish procedures to take appro- there will be no further votes today, no Brown Graham Lieberman priate action against an insurance company, session on Friday, and no votes on Byrd Grassley Lincoln including monetary penalties and removal or Cantwell Gregg Martinez Monday. Let me turn to the Senator Cardin Harkin McCaskill suspension from the program, when a com- from Illinois. Casey Hatch McConnell pany refuses to cooperate with an investiga- Chambliss Inouye Menendez tion or audit under this section or where a The PRESIDING OFFICER. The Sen- Coleman Isakson Mikulski finding has been made of improper conduct. ator from Illinois is recognized. Conrad Johnson Murkowski

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But among a handful of State and local of- Sanders Stabenow Wyden the 2005 hurricane season, which ficials nationwide who realized that Schumer Stevens brought Hurricanes Katrina, Rita, and mere digitization alone isn’t enough, NAYS—24 Wilma, created a need on an entirely and they contributed their own time Allard Collins Inhofe new scale, a scale that not only over- and data to update the content, as Barrasso Crapo Kyl whelmed the program but exposed seri- well. Those maps will all be completed Brownback DeMint Lugar Bunning Dole Reed ous flaws in its design. over the next 5 years. I am proud of my Burr Enzi Roberts To pay out the estimated $19 billion State’s emergency management offi- Carper Feingold Sununu in NFIP claims, the program had to cials for showing that initiative, and I Coburn Hagel Thune borrow almost $18 billion from the U.S. Cochran Hutchison Vitter am glad that this bill makes sub- Treasury. Government-subsidized pre- stantive improvement to flood plain NOT VOTING—8 miums for certain policyholders, out- maps the norm rather than the excep- Boxer McCain Reid dated flood insurance rate maps, and tion. Clinton Murray Warner other program weaknesses undermined One of the biggest lessons we Mary- Ensign Obama NFIP’s ability to meet the demands landers learned in the wake of Hurri- The amendment (No. 4715), as modi- created in the 2005 season. Those flaws cane Isabel in 2003 was that people fied, was agreed to. have also created false incentives over didn’t have good information about Mr. DURBIN. Madam President, I the years, encouraging developers and flood insurance. Some people who move to reconsider the vote. homeowners to build and then rebuild should have had insurance didn’t. Some Mr. LEVIN. I move to lay that mo- in flood-prone and environmentally who had it didn’t understand it, had tion on the table. sensitive areas. too little coverage, or too much cov- The motion to lay on the table was With the 2008 hurricane season less erage. agreed to. than a month away, we have to fix the S. 2284 will improve consumer edu- Mr. CARDIN. Madam President, I program’s flaws and put it back on cation. It takes steps to ensure that all rise to speak today in favor of S. 2284, sound financial footing. S. 2284 does homeowners at high risk of flood dam- legislation that would reform and mod- just that, and I want to applaud Sen- age participate in the program and ernize the National Flood Insurance ators DODD and SHELBY and my other that more homeowners know about the Program, NFIP. Congress created NFIP colleagues on the Senate Banking flood risks to their property and about in 1968 in the wake of a series of ter- Committee for their excellent work. the insurance options available to rible hurricanes, the worst of which First and foremost, S. 2284 restores them. It requires every person who was Hurricane Betsy, a storm that dev- the program’s solvency by forgiving buys a home in an area of elevated astated New Orleans in 1965. After ob- FEMA’s debt to the Treasury. FEMA flood risk to learn about that risk at serving the ad hoc nature of disaster isn’t able to repay it; the interest alone their settlement and be given an oppor- relief efforts, all of which came at tax- is approximately $900 million annually, tunity to purchase insurance. It places payer expense, Congress saw an urgent equal to almost 40 percent of annual the burden on lenders to make sure all need for a better way to handle the premium income. In order to keep people who need to have insurance ac- risks and losses associated with flood rates affordable, we have to accept that tually get it. It would provide grant damage. loss and turn our attention to improv- money to communities to conduct edu- NFIP, which is administered by the ing the program so it is better able to cational and outreach activities to en- Federal Emergency Management Agen- pay claims in the future. courage people to purchase flood insur- cy, FEMA, provided insurance to indi- S. 2284 takes several steps to make ance and learn what steps they can viduals living in flood-prone areas who sure that the program’s revenues will take to mitigate against flood damage. weren’t able to get private insurance. be sufficient to meet those future Last but not least, S. 2284 creates an But it did much more. It required map- needs. The legislation moves several Office of the Flood Insurance Advocate ping to identify areas at risk for flood- types of homeowners, who previously to assist policyholders with any prob- ing and community floodplain mitiga- received subsidized rates, toward pre- lems they have with their NFIP claims. tion and management measures to help miums that match their actual risk of Rates that reflect risk, better flood prevent flood damage in the future. flooding. It expands the categories of plain maps, more expansive participa- The program has been important in people who need to buy flood insurance tion, and better information: these my State of Maryland. According to to better reflect the categories of peo- changes will make the program self- the 2005 report of the Maryland Emer- ple actually at high risk. It includes sufficient once again. But even more gency Management Agency, Maryland provisions to encourage more home- important, by providing homeowners, is the third most vulnerable State in owners, even those outside the highest communities, developers, and emer- the Nation to flooding. More than 12 risk areas, to buy insurance. gency management and planning offi- percent of land is designated under S. 2284 takes steps to ensure we know cials with accurate information about NFIP as a special flood hazard area. An who is at high risk. It authorizes more flood risk and its associated costs, S. estimated 68,000 Maryland homes and money for FEMA to update and digitize 2284 reverses some of the program’s buildings are located within the flood the Nation’s flood hazard maps. Most false incentives to build and live in dis- plain, representing nearly $8 billion in FEMA maps contain 30-year old data. aster-prone areas. assessed value. Nearly 64,000 Maryland- Think of that. How many of us live in When hurricane season starts this ers held NFIP policies as of February houses or even neighborhoods that year, it will bring greater risk to many 2007, and in the hurricane seasons from were built in the last 30 years? Home- States, Maryland included. An April 2002 to 2006, a span that included Hurri- owners and officials can’t make good 2007 Intergovernmental Panel on Cli- cane Isabel, insured flood losses in decisions about risk and development mate Change report found that global Maryland totaled approximately $177 based on such woefully outdated infor- warming will result in more flooding million. mation. through more intense hurricanes, re- The program appeared to work well At present, FEMA’s map moderniza- duced snow pack, and sea level rise. We for many years. The revenues brought tion program updates old maps by put- are experiencing those changes today in through insurance premiums cov- ting them in digital form without in Maryland. ered payments made to individuals in changing any of the information. So if We have over 4,000 miles of coastline, the wake of flooding disasters. Today, you live in a house or on a street that more than the State of California, and the NFIP has been reported to save only came into existence in the past 30 historic tide-gauge records show sea

VerDate Mar 15 2010 10:41 Dec 08, 2010 Jkt 069102 PO 00000 Frm 00032 Fmt 0686 Sfmt 0634 E:\BR08\S08MY8.001 S08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD 8122 CONGRESSIONAL RECORD—SENATE, Vol. 154, Pt. 6 May 8, 2008 levels have risen one foot within Mary- little common sense into the energy than 50 percent of our Nation’s elec- land’s coastal waters over the last cen- debate. I want us to take a realistic tricity and we have enough of it to last tury. Due in part to naturally occur- look at how we get there from here. us for more than 225 maybe 500 years. ring regional land subsidence, Mary- The ‘‘there’’ is an America that pro- Coal is what is going to pave the way land is currently experiencing sea level duces more clean, renewable energy to a completely renewable energy fu- rise at a rate nearly double the world- than we can possibly consume. The ture. But its not going to be the coal wide average. Thirteen charted islands ‘‘here’’ and now is an America that is you are picturing in your head right and large expanses of those critical largely dependent on foreign govern- now. It’s not going to be the black tidal wetlands in the Chesapeake Bay ments for the energy we need, the en- lump that Santa gives to ill-behaved have already disappeared. ergy we can’t do without—the energy kids on his list. It’s not the dirty, These changes make us more vulner- that is the lifeblood of our economy; dusty coal of Dickens’ Victorian Lon- able to storm surges. Allstate Insur- the energy that makes our way of life don. No, what I am talking about is ance, one of our largest insurers, an- possible. Where we find ourselves now plentiful clean coal that we use our in- nounced this past year that it would is the hole that the failed planning of genuity and our resources to turn into stop writing new homeowners’ policies the past and realistic ideology has put green coal. in coastal areas of my State. The rea- us in. We have got to get out. We have You are worried about climate son they won’t give insurance to home- got to get out for the sake of our chil- change and support the use of clean- owners in coastal areas is because they dren and for the sake of Americans who burning natural gas. Good. Then you say a warmer Atlantic Ocean will lead are struggling to pay their bills today. should support the projects underway to more and stronger hurricanes hit- For the most part, we can all agree right now that will convert coal into ting the Northeast. on where we want to go. We want more that natural gas or carbon sequestra- It is critical that we shore up the Na- clean energy. We want to import less tion of 50 percent of the carbon from tional Insurance Flood Program so foreign oil. We want improved energy coal, which makes coal just as ‘‘clean’’ that it is ready to support Marylanders efficiency. We can also agree that as natural gas. We are developing tech- and all Americans in times of need. S. where we are is not acceptable. Its the nology to efficiently and cost-effec- 2284 does that without increasing in- road we travel, the pathway we take to tively convert coal into low carbon, centives to build in disaster-prone a better future that we have been argu- low sulfur diesel, and to convert coal areas or destroy environmentally sen- ing about for decades. The arguments I into low carbon gasoline so we can can- sitive areas. That is a tough line to have seen over the past dozen years or cel those trips to Saudi Arabia where navigate, but this bill does it well. I am more center not on economic health of we have our hands out begging them to proud to offer my support. our Nation but on environmental increase production of oil. Look, to- f health. OK. That is fine with me. We morrow we are not going to be able to can talk about hydrogen fuel cells, MORNING BUSINESS jump into our hover car that is pow- solar panels and wind turbines and we ered by common household trash. We Mr. DURBIN. Madam President, I ask should. All these energy sources and need to develop what we have right unanimous consent that the Senate many other renewables are going to be now alongside the fuels of the future. enter into a period for morning busi- a part of the solution, but overnight, Instead of running from coal, we should ness, with Senators allowed to speak they cannot replace the fuel sources we invest in its abundance, in its power for up to 10 minutes each. use today. The technology is not there. and its potential. Instead of running The PRESIDING OFFICER. Without The infrastructure is not there, and the from coal, America needs to run on objection, it is so ordered. will of the American people to switch coal, green coal. The Senator from Wyoming is recog- to different, more expensive fuel George Washington Carver is one of nized. sources is not there. It is one thing to my heroes for what he did with the f say, yes, let’s go green, but it’s another peanut. He found over 300 ways that thing to pull the green out of your wal- ENERGY SECURITY American farmers could use the pea- let to pay for it. Technology takes nut, including as soap, facial cream, Mr. ENZI. Madam President, I re- time to commercialize. Infrastructure cently returned from a trip around Wy- shampoo and even ink. What we need takes time to build and the attitudes now is a George Washington Carver of oming. The focus of my trip was the and willingness of many Americans to need for change in our health care sys- coal—and I believe several are out embrace a new energy market, a mar- there right now ready to invent. They tem. I have spoken about that issue on ket that could be more expensive, will the floor of the Senate on a number of just need a little bit more encourage- take time to occur. ment instead of the ‘‘can’t do’’ attitude occasions, and while improving our Na- What do we do until we get there? that I hear from some opponents of tion’s health care system is essential, What do we do with the energy sources coal. here today to speak on another issue of we have now? We make them better. great importance to my constituents. We use them more efficiently. We Over the next few months, as we de- That issue relates to our Nation’s en- make them clean. We make them bate energy issues in the Senate, I will ergy security. We have debated meas- green. And what is America’s most be talking with my colleagues about ures to tax one type of energy to pro- readily accessible energy source that the need to develop the energy sources vide tax incentives for other industries. we already have the infrastructure in we will use in the future, some of We have debated, without success, the place to use? What is the 800-pound go- which must be cleaner, more efficient idea of opening up more of America to rilla in the room that unfortunately so versions of the energy sources we use energy production and the Senate will many of our political leaders are ignor- today. We need all the energy we can eventually take up legislation related ing or worse yet, persecuting? It’s coal. get to power America, and I look for- to climate change. When you turn on your computer, ward to working on that solution. As we have had those debates, we when you flick that light switch or I have been paying attention to what have seen gas prices rise to record lev- turn on the television, it’s probably China is doing. They have figured out els. We have passed a ‘‘renewable fuels powered by coal. Most of the energy we that the future power of the world is in mandate’’ that looks less encouraging use to recycle the aluminum cans you energy, and they are buying it up any- with every new study that is released, put in the special bin on the curb, the where they can. They are even buying and we have sent more and more glass, the metal, the plastic, well it U.S. coal. money to countries that do not support comes from coal. And if you had an But I wish to speak today in a little our ideals of freedom and democracy. electric car now and wanted to plug it more detail on an issue that is affect- Because of that, it is my intention in to recharge, that energy would like- ing everyone in the Nation, and that here today to inject a little reality, a ly come from coal. Coal supplies more issue is the rising price of gasoline and

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The rising prices are dis- process for permitting a refinery more comes a couple of energy packages side proportionately affecting my constitu- reasonable. by side that we are going to be voting ents in Wyoming, who are oftentimes The bill addresses the need to fairly on. forced to drive long distances to get to compensate States that allow for en- It is very interesting that in one of and from work, and then all over the ergy production to occur on their lands those energy packages, that being of- country I am hearing from truckers, by repealing a provision to withhold 2 fered by the Senator from New Mexico, usually small company truckers who percent of the revenue States receive Mr. DOMENICI, it will have a provision have a fixed contract to deliver a prod- to pay for ‘‘administrative costs.’’ This for drilling in the Outer Continental uct and no fuel escalation clause. I ex- provision is particularly harmful to Shelf. Now, we have gone through this pect, from a financial literacy situa- Wyoming and must be repealed imme- drill about drilling several times, the tion, that they have learned something diately. The Federal Government’s ac- last of which, I want to remind the about that, but they are still tied into tions toward the Sates regarding min- Senate, when the pro drilling for oil those and they are going broke doing eral royalties are the actions of a bully forces wanted an additional 2 million what they agreed to do because of the and a thief. I am standing up to this acres in the Gulf of Mexico, which cost of fuel. They are visiting with all bully. I hope my colleagues will join would go east in the eastern Gulf of of us. me. Your State could be bullied next. Mexico headed straight toward Tampa, The Senate needs to take up action, Don’t forget that. FL, we worked out something that and there is an amendment before us This bill also addresses our Nation’s would satisfy all of the parties; that that will help all Americans. need to find alternatives to oil by pro- they would not have 2 million acres but With Americans hurting, we need to moting coal to diesel fuel. Coal is our they would have 8 million acres—8 mil- do something—anything to reduce gas- Nation’s most abundant energy source lion acres, not 2 million acres. But it oline prices. But, instead of working on and can be made into low sulfur diesel would be further to the south, not to solutions for one of the single most im- through a process that has been in ex- the east and, therefore, would not portant issues confronting the Amer- istence for years. We need to build coal harm the interests of Florida or the ican people, the majority sticks its fin- to diesel plants in the United States in U.S. military. gers in its ears and loudly sings cam- order to increase our energy security I remind my colleagues that the U.S. paign rhetoric chorus and verse. Last and this bill has provisions to promote military’s largest testing and training week, as oil shot up above $115 per bar- this important and much needed pol- area in the world is almost the entire rel, we held one vote. We did not vote icy. Gulf of Mexico off of Florida. It is the on Tuesday, Wednesday, Thursday or Any one of provisions I have men- pilot training for the new F–22 out of Friday. This week, we were out of ses- tioned will help our Nation’s energy Tindale Air Force Base in Panama sion on Monday. This is not the way we situation and we need to act now. If City. They have to have wide areas should legislate when Americans can- the majority doesn’t like every part of with which to do dog fighting, not at not afford to fill up their tanks. We it, that is fine. Let’s get in there and submach but at 1.5 mach, and the turn- need to do something about energy and pass the parts we can agree on. Let’s ing radius at 1.5 mach is extraordinary. we need to do it now. change the parts we can’t agree on. When are you doing this with live fire I am proud to be a cosponsor of the Let’s throw some of the parts out. I exercises, you can imagine that you do Domestic Energy Production Act of was working on an 80 percent rule, fig- not want anything down there on the 2008 that was recently introduced by uring we can usually agree on 80 per- surface of the water. By the way, that Senator DOMENICI. The legislation in- cent of anything and if we concentrate is also why all of the new F–35s, the cludes a number of important provi- on the 80 percent, we can get it done new joint strike fighter pilot training, sions that will have a positive effect on and leave the other 20 percent to the when that fighter is developed, will our Nation’s energy situation. Some pundits. But we need to get out there also be in that area. provisions are designed to help hard and pass the parts we agree on. We It is also the reason the Navy now working consumers today. Other provi- need to get something done. sends its squadrons down to the Key sions have a long term impact that will There will be plenty of credit to go West Naval Air Station at Boca Chica, make it so that we are not as depend- around. Congress cannot sit back and because when they lift off the runway ent on oil barons in the Middle East do nothing as American pocketbooks at Boca Chica, in 2 minutes they are and foreign dictators to get our energy. are bleeding. Right now, the credit for over restricted air space where they There are a number of good provi- that has to go to the majority. can do their pilot training. But it is sions in this bill that will make a dif- I hope all my colleagues join me in also the area where we are testing ference. The bill allows for the develop- supporting the Domestic Energy Pro- some of our most sophisticated weap- ment of domestic energy sources that duction Act of 2008, even though we do ons systems, many of which are with are currently off limits. A major rea- not get to vote on it tomorrow and we live ordnance, and you simply cannot son we are seeing high prices is the don’t get to vote on it Monday. We are have oil rigs down there on the surface lack of domestic energy supplies in the not going to get to vote on it until of the water where you are doing all of face of growing energy demands. It al- Tuesday. But we ought to be making this in furtherance of the training and lows for responsible energy production some difference by Tuesday. the testing in order to have the best in the Outer Continental Shelf and for Like I say, we can revise it, we can military in the world. limited, environmentally safe energy change it, we can throw parts out, but Yet it is coming back. It is coming production in the Arctic National Wild- we have got to do something. America back again. Now this time it is a little life Refuge. Allowing for this produc- is complaining about the price of gas. I easier for us because we etched it into tion will help us to lessen our imports understand that. I look forward to see- law as to that additional lease area for of energy. What we produce in the ing everyone next week to make a dif- drilling in the Gulf, and you have got United States we do not have to send ference for America. to change the law. Until the last time, money to other countries for. I yield the floor. it had always been under a Presidential The bill addresses the need to build The PRESIDING OFFICER. The Sen- moratorium. So it will be more dif- new refineries. There is not enough re- ator from Florida is recognized. ficult for them to have to change this. fining capacity in the United States to OFFSHORE DRILLING But I bring this up because the atti- handle the demand that we have. Yet Mr. NELSON of Florida. Madam tude is tunnel vision about drill, drill, our policies are so onerous that there President, next Tuesday—not Monday drill. has not been a new refinery built in the but Tuesday—we are going to have a That is not how we are going to solve United States in more than 30 years. series of votes and ultimately get to the problem. I mean, are we not going This needs to change, and the only way the final vote on the flood insurance to wake up with $120 per barrel oil it will change is if we act to make the bill. And miraculously, out of the air prices and, who knows, with the tight

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world oil market, if it is not going to average of 43 miles per gallon. Why (The remarks of Mr. WYDEN are keep going up? cannot America summon the political printed in today’s RECORD under And why is it at $120? We have had will to say we are going to do some- ‘‘Morning Business.’’) testimony here in the Senate from oil thing different than what we have been Mr. WYDEN. I yield the floor and executives who say the typical supply- doing in the past, and we are going to suggest the absence of a quorum. demand on the world market ought to try to wean ourselves from dependence The PRESIDING OFFICER. The have the price of oil at $55 per barrel. on foreign oil which makes up 60 per- clerk will call the roll. If that testimony is accurate, why the cent of our daily consumption. If we The assistant legislative clerk pro- difference then between $55 and $120? had the political will, we could do it. ceeded to call the roll. I think part of the answer to that And, of course, if we had the political Ms. MURKOWSKI. I ask unanimous question is, you look at history. You will, we could not only do the miles per consent that the order for the quorum see these spikes whenever there is an gallon, we would put the money into call be rescinded. unsettling condition in the world. You the research and development to ulti- The PRESIDING OFFICER. Without saw that in the early 1970s in the oil mately get to cellulosic ethanol so we objection, it is so ordered. embargo. You saw that again in the would not be making ethanol from f late 1970s with the Iranian capture of what we need to eat, and instead we LAW OF THE SEA TREATY the American Embassy people and would be making it from fiber, from holding them hostage. You saw it again that which we throw away. If we sum- Ms. MURKOWSKI. Madam President, at the beginning of the 1990s with the mon the political will, we would get se- many of us have come to the floor, cer- first gulf war, when Saddam Hussein rious about conservation measures and tainly this past week—all this year— had moved on Kuwait. You have seen it renewable fuels such as wind and solar, talking about increasing energy prices. again in this decade with the Iraq situ- all the more than we are now. We There has been a lot of commentary ation, and you see it now with the jit- would get serious about a major R&D about whom to blame. What do we do, ters about what is happening in the effort and pouring the money into it in how do we reduce the price of oil, how Middle East. order to start developing the engine of do we address the predicament we are You see it also in the unsettling rela- the future that does not depend on any in as a nation that is so very heavily tionship we now have with the Presi- kind of petrol, such as hydrogen, or dependent on energy for our economic dent of Venezuela, Hugo Chavez, who perfecting these batteries so we can strength? I have certainly done my bombastically keeps threatening to cut have an all-electric vehicle. That is share of talking about the need to in- off oil. Now, that is a hollow promise what we would be doing if we sum- crease domestic production of oil and because we have the refineries that moned the political will. At the end of gas, particularly in the State of Alas- have to process his grade of crude. But the day, that is what we are going to ka. We believe we have great opportu- over time he could change. Neverthe- have to do. It is going to have to be the nities up there and can be doing more less, it unsettles the markets. new President who does it. to address it. What we haven’t had an By the way, we get 14 percent of our On this subject I will close by saying, opportunity to bring up in the debate oil daily, our daily consumption of oil, America has a historical tendency to is the potential for a vast reservoir of from Venezuela. drag its feet until we are abruptly energy that is available to the United You see it also with regard to Nige- shoved up against the wall and we have States in the Arctic, in the far north, ria. Mark my word. Nigeria is an acci- to do something, and you see this and the fact that we could lose out to dent waiting to happen with regard to throughout our two centuries of his- other nations if we are not more the 12 percent of our daily consumption tory. proactive in asserting our claims to of oil that comes from Nigeria. And al- There was at a time, for example, these resources. ready the battery, the thievery, the during the Korean war, the Soviets had I have been on the floor many times kidnappings, all of that being done by the high ground. Their MiGs could fly talking about the Arctic Coastal Plain criminal thugs, that is one threat. But higher than our jets. Again in 1958 they and the potential in ANWR. We believe I recall for the Senate the fact that in had the high ground, because they put there is anywhere between 10 to 16 bil- northern Nigeria, al-Qaida is ascend- up the first satellite, Sputnik. Again in lion barrels of economically recover- ing. So that is certainly one reason for 1961 they had the high ground, when able oil, the largest remaining onshore the difference between what some peo- they put up Yuri Gagarin, the first petroleum field in North America. But ple have testified that the supply and human to orbit the Earth. even further to the north, beyond demand would have oil at $55, and in- We did not even have a vehicle that ANWR, off the coast of Alaska and be- stead it is at $120. was powerful enough until 10 months yond, this is where we believe an But there is another reason. That is later when we put John Glenn in that unquantifiable amount of resource may the speculation on oil futures and bid- flimsy Atlas that had a 20-percent lie. It is estimated that the Arctic may ding the price up that gets us to this chance of failure, and finally got up. hold 25 percent of the entire world’s point. Again, they had the high ground undiscovered oil and gas resources. It Now, I am giving all of this back- when they rendezvoused, the first time is enormous. That number is based on ground to say, well, what do we do? Is in space, with two spacecraft. They a 2000 assessment by the U.S. Geologi- the answer the tunnel vision or myopic beat us to that. But then America sum- cal Survey. In that survey, they only vision of drill, drill, drill, or do we do moned the political will when the looked at a few of the Arctic basins. what we know we have to do? And the President said: We are going to the There is going to be a more detailed question is, where is most of our oil Moon in 9 years and return. And we survey that will be out. The survey is consumed? It is in transportation. did. And we have the high ground now. currently underway. The projection is Where in transportation is most of the Now it is another complete subject— that the amount of 25 percent could be oil consumed? It is in our personal ve- I will not get into it—about how we lower—that, in fact, the amount of oil hicles. could be losing that high ground with and gas in the Arctic region could go So why do we not get serious, as we NASA, because NASA is not getting significantly higher. had our first inkling that we are, by enough resources for all of the things it What is the problem with this situa- having more conservation with greater is trying to do and, therefore, it is not tion? The fact is, we believe the poten- miles per gallon? We passed in this going to have a chance to achieve and tial in the Arctic under the ice may be Senate 35 miles per gallon phased in all keep that high ground if we do not. But enormous, but we have no legal claim the way out until 2015. I will save that one for next week. as a nation to most of this oil or gas, In Japan today, they are running I yield the floor. unless the United States becomes a around in their cars at 50 miles per gal- The PRESIDING OFFICER. The Sen- party to the convention on the law of lon. In Europe today, they have got an ator from Oregon is recognized. the sea. I can tell you, if we are not

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It was re- claim—and, therefore, the United have a joint submission by France, Ire- ported favorably out of the committee States’s claim—to an area that would land, Spain, and the United Kingdom on October 31 of last year by a com- be potentially on this side of the Cana- that came about in 2006. Norway sub- mittee vote of 17 to 4. dian border and coming down through mitted their claim—that is going out For those who are not familiar with the Chukchi Sea, clearly overlapping this far, as shown on the map—in 2006. the Law of the Sea Treaty, it allows, where the Russians have submitted France has submitted a claim last among other things, coastal states to that they would have the potential for year, as well as Mexico. exert sovereign rights to all living and a claim. On April 21 of this year, the Commis- nonliving resources within its exclu- So you need to kind of appreciate the sion on the Limits of the Continental sive economic zone out to 200 nautical dynamics you have here. We have map- Shelf confirmed that Australia’s claim miles from its shores. Essentially, it is ping that indicates the U.S. conti- to an additional 2.5 million square kil- the Outer Continental Shelf. But, in nental shelf could extend out dramati- ometers of continental shelf beyond its addition, a nation can exert claim to cally. When you talk about a mass, an existing exclusive economic zone was an extended Outer Continental Shelf if area the size of the State of California, valid and has moved forward to allow it can show that its continental shelf you would say that is hugely signifi- for that extended claim. extends beyond the 200-mile limit. cant to us as a nation in terms of our Now, Australia’s claim, again, was So last year, the Coast Guard Cutter potential for additional resource. submitted in 2004. So the Commission Healy went up north beyond Alaska, up Now, I have shown you the lines on on the Limits of the Continental Shelf into the Arctic Ocean, to do a mapping this map. There are some who object to is actually moving on these submis- of the ocean floor there, to determine ratification of the Law of the Sea Trea- sions. The claim Australia made—and, where the extent of that continental ty and express concerns about sov- again, Australia is an island nation, so ereignty. But for those who are con- shelf may extend. they clearly have a great deal they can cerned about sovereignty, I would sug- Behind me I have a map or chart of say lies off their continental shelf area, gest that if we are not party to the the Arctic Ocean that was mapped by but 2.5 million square kilometers of Convention on the Law of the Sea, the Coast Guard Cutter Healy during continental shelf has now been added there is a good chance Russia’s claim this last season of exploration. What to their jurisdiction. This is an area to the Arctic—which I have shown you, the expedition showed us was that the approximately five times the State of following this yellow line, which is sub- United States could potentially lay France. Now, for those of us who are stantial; it is about 45 percent of the claim to an area about the size of the thinking a little bit closer to home, Arctic Ocean—could be recognized cut- State of California as part of our ex- that is three times the size of the State ting into what we believe to be our ex- tended continental shelf. But we can- tended continental shelf. of Texas. So, again, the jurisdiction not do that without being a party to Now, let’s talk a little bit about the that has been extended to the nation of the Convention on the Law of the Sea. potential for the resources up there. It Australia, because of their claim to ad- So to make it a little more real to is estimated the area that Russia ditional Outer Continental Shelf areas, the situation—and I know it is difficult claims as its Arctic Ocean shelf—so is significant. to see the map—but what you have this area in through here, as shown on Martin Ferguson, who is Australia’s here is Alaska. It is upside down, but the map—could hold 580 billion barrels Minister for Resources and Energy, Alaska is at the top of the world, so we of oil equivalent. And 90 billion of noted that the Commission’s findings felt it should be located at this angle. those barrels could be in the Chukchi ‘‘demonstrates that Australia’s effec- Here is the State of Alaska, the Cana- Sea and the East Siberian Sea, so close tive engagement in law of the sea mat- dian border, all of Canada, Greenland, in to the State of Alaska. That is 90 ters delivers results.’’ Norway, and then Russia up through billion barrels of oil we have the poten- Now, I mentioned nine submissions here. The red dotted line indicates the tial to stake a claim to as well, but that have been submitted for extended limits of the permanent ice that you only, again, if we are party to the Con- continental shelf claims. All of these have. So much of what you see in the vention on the Law of the Sea. have been made since December of 2001, lighter area is continental shelf. Now, some would take a look at this including Russia’s claim to half the What you have with this line—that map and say: Well, Russia is not going Arctic and the resources it holds. We kind of follows in a very jagged way to be able to get that. We all saw the see that Australia’s claims have been Russia—this is Russia’s continental cover of Time magazine last year when accepted. I believe it is only a matter shelf claim. So they are essentially Russia took a little submarine down of time before other claims are accept- laying claim to this area from the and basically planted a flag on the bot- ed as well. Chukchi Sea, the East Siberian Sea, tom of the seabed, staking claim. It got I believe—I believe very strongly—it and down through here. people’s attention. I think folks looked is in the best interests of the United Norway has its extended continental at that and said: Well, they don’t have States to be able to submit our claims. shelf claim. Here is Norway. They have any claim to that ocean seabed. On We have the mapping. We can establish made a claim that their Outer Conti- what do they base that? So you look at the extension of the shelf, again, to a nental Shelf should allow them access this map and say: There is no reason considerable area—the size of the State to the resources up to this green line. Russia has any greater claim to 45 per- of California. I believe it is incumbent Well, what we have here with the yel- cent of the Arctic Ocean anymore than upon us to assert our authority in this low line is the Russian extended conti- the United States or Canada, so it is area and to have a seat at the table in nental shelf area. So through their not going to happen. determining the validity of the claims mapping, or their determination, they But for those who would doubt Rus- of the other nations. believe—the Russians believe—they sia might have success with their If we think Russia should not be able could potentially lay claim to all of claim, I would ask you to look at what to extend their jurisdiction out—as this area in to the coast of Russia. has happened. Right now, you have a they have requested, with this pretty Where it gets a little complicated is handful—probably, seven or eight—dif- impressive yellow line—to 45 percent of looking at the coastline of Alaska, rec- ferent nations that have submitted to the Arctic Ocean, we want to be able to ognizing that we have claim to 200 the Commission on the Limits of the sit at the table and say why we believe miles off the coast of Alaska, but with Continental Shelf their requests for ex- they should not have the ability to the mapping the Coast Guard Cutter tended continental shelf claim. make that claim. Well, if we are not a

VerDate Mar 15 2010 10:41 Dec 08, 2010 Jkt 069102 PO 00000 Frm 00036 Fmt 0686 Sfmt 0634 E:\BR08\S08MY8.001 S08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD 8126 CONGRESSIONAL RECORD—SENATE, Vol. 154, Pt. 6 May 8, 2008 party to the treaty, we are not sitting ernment is to make freedom work for ance products. They can shop on line, at the table, and we cannot contest the everyone, and that includes people hav- by mail, over the phone, or in consulta- validity of the claims of other nations. ing the freedom to own their own tion with an insurance agent in their We have the opportunity to stake a health insurance. We believe when peo- hometown. claim to an area of the seabed that we ple do not work for a company that of- Specifically, the bill would let insur- believe—we believe very strongly— fers health insurance, they should have ers licensed in one State sell to indi- likely contains billions of barrels of guaranteed access to affordable health viduals in the other 49 States. Most oil. We have the research to dem- insurance policies that they can take people are surprised that you can’t do onstrate that the seabed is part of our from job to job. I am encouraged that that now because in every other prod- extended continental shelf. But we can- Senator MCCAIN is on the side of free- uct category we can buy products not not claim ownership of these resources dom of choice and individual ownership only in every State but all over the without being a party to the Conven- of plans. world. But with health insurance, we tion on the Law of the Sea. We know if we are going to make in- have taken a different tact, a tact that There are plenty of other reasons dividual plans work, we need to address has made health insurance much more why we should ratify this treaty— the high cost of insurance. We know expensive because we allow a few insur- whether it is to ensure that our Navy that is the biggest impediment to get- ance companies to monopolize the mar- has the ability to freely navigate in ting coverage when that coverage is ket in 50 individual States. international waters; or to provide our not offered through an employer. In What we need is a national market maritime industries with the legal cer- fact, nearly two-thirds of the uninsured for health insurance. Consumers will tainty they need to carry out their ac- are the working poor, and they cite the no longer be limited to picking only tivities. high cost of insurance as the primary those policies that meet their State I believe, again, very strongly, the barrier to accessing health coverage. regulations and mandated benefits. In- ratification of the convention is a We can talk about the uninsured, and stead, they can examine the wide array must. But I think we need to recognize we can talk about the high cost of in- of insurance policies qualified in one that as we are kind of sitting back on surance, but we need to address the State and offered for sale in multiple this at this point in time, other na- real causes of the high cost of insur- States. This way, consumers can tions are moving forward. They are ance. We know if we look at the poli- choose a policy that best suits their making their claims to greater areas of cies, if we talk to those who offer the needs and their budget without regard the ocean and to its seabed. I do not policies—the insurance companies—we to State boundaries. It makes a lot of think we should be left behind as a na- know that mandates, government man- common sense. Individuals looking for tion and lose out on significant poten- dates on those policies have a lot to do basic health insurance coverage can tial energy reserves at a time when we with the high cost of insurance. opt for a policy with a few benefits all know that energy is at an incredible States have passed more than 1,900 they need, and such a policy will be premium. benefit mandates requiring insurance more affordable. I will make the same statement I companies to cover everything from On the other hand, consumers who made in committee when we had the wigs to infertility treatments to have an interest in a particular benefit discussion on the Convention on the acupuncturists to massage therapists. such as infertility treatments will be Law of the Sea. I urge my colleagues to These may all be legitimate needs, but able to purchase a policy that includes support ratification of the Convention they are not legitimate mandates on that benefit. Equally important, it cre- on the Law of the Sea and urge the insurance policies. When people are ates incentives for insurance compa- Senate leadership to bring the treaty looking for a policy that meets their nies to offer innovative and customized to the floor for a vote. With that, I needs that they can afford, we cannot insurance products, and it will reduce yield the floor. continue as governments—both State the number of Americans who have The PRESIDING OFFICER (Mr. and Federal—to mandate that every sought but have been unable to afford WHITEHOUSE). The Senator from South policy cover every possible problem insurance coverage. Carolina is recognized. when individuals do not need those I am thrilled that Senator JOHN f mandates to buy the policies they MCCAIN has made this legislation one want. These mandates increase the of the cornerstones of his health insur- HEALTH CARE OPTIONS cost of health insurance. According to ance platform because health insur- Mr. DEMINT. Mr. President, we have the Congressional Budget Office, for ance coverage should not be dictated many important issues in front of us. every 1 percent increase in the cost of by State or Federal legislators. Fami- We have been talking a lot about en- health insurance, 300,000 people lose lies sitting around their kitchen tables ergy this week, including the high cost their coverage. should decide what their health insur- of gasoline and problems with ethanol A few States are getting the message ance plan should cover. I believe Sen- mandates and potential problems with that mandates make health insurance ator MCCAIN’s plan to address the gross the cost of electricity. As we look at more expensive. There are at least 10 health care inequity in the Tax Code ways to reduce pollution, certainly en- States that provide for mandate-lite and to harness the power of the mar- ergy is important. We have also been policies which allow individuals to pur- ketplace through the interstate com- dealing with flood insurance. There is chase a policy with fewer mandates and petition of insurance products, through no shortage of issues. But we know as so are more tailored to their individual that, Americans will be able to find af- we talk to our constituents around the needs and financial situation. There fordable health insurance that offers country that at the top of their list of are now at least 30 States that require more choice and better coverage. We priorities is health insurance and a mandate’s cost to be assessed before know this is true. health care and the ability to afford it is implemented. These States are As we talk to insurance companies, if the policies that are out there. getting the message. Mandates are they were allowed to offer products for We have differences of opinion in the pricing individuals out of the insurance all 50 States under one set of regula- Senate as to how to deal with the unin- market. tions, or under 50 if they choose, if they sured in our country today. There is I have introduced legislation that ad- are able to have a larger pool of mem- one philosophy that believes the gov- dresses these growing problems. In De- bers, they can spread the risk and ernment needs to be more involved; we cember, Congressman JOHN SHADEGG of lower the rates. need to expand government control of Arizona joined me in introducing the The Health Care Choice Act is a com- health care. There is another philos- Health Care Choice Act. This legisla- monsense way to let freedom work for ophy of which I am a part which be- tion is important because it will allow every American, to let the free enter- lieves that our job in the Senate and in consumers to shop for health insurance prise system work in health insurance the Congress and in the Federal Gov- the same way they do for other insur- as it does in almost every other area of

VerDate Mar 15 2010 10:41 Dec 08, 2010 Jkt 069102 PO 00000 Frm 00037 Fmt 0686 Sfmt 0634 E:\BR08\S08MY8.001 S08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD May 8, 2008 CONGRESSIONAL RECORD—SENATE, Vol. 154, Pt. 6 8127 our lives. I encourage my colleagues to been stirred by the shocking images of about this Saturday’s referendum is a consider the Health Care Choice Act suffering and loss that have come from farce. The process leading up to it has and to move away from this idea that Burma. Last week’s cyclone was one of been marked by oppressive measures more government control, more gov- the most devastating in memory. The that, of course, are not typically asso- ernment mandates is actually going to damage to Burma’s infrastructure, to ciated with free and open political de- help us get more Americans insured. its cities and towns and villages, is bate. It’s a crime, for instance, to criti- I thank the Chair, and I yield the staggering. cize the document. floor. The human toll won’t be known for The substance of the constitution is The PRESIDING OFFICER. The Sen- weeks. As many as 100,000 are thought also profoundly antidemocratic. It pro- ator from Minnesota. to be dead. Thousands more are unac- hibits Aung San Suu Kyi, the leader of (The remarks of Mr. COLEMAN are counted for and injured. And those who the party that won Burma’s last free printed in today’s RECORD under survived face grave challenges. By all and democratic election, from holding ‘‘Morning Business.’’) accounts, potable water and food are high office. Former political prisoners Mr. COLEMAN. Mr. President, I yield scarce, increasing the threat of disease. and activists could find themselves un- the floor. And shelter is hard to find. able to run for Parliament. And the (The remarks of Mr. BOND are printed This kind of suffering tests our pow- Burmese military would control key in today’s RECORD under ‘‘Morning ers of comprehension. But the extent of ministries and hold a quarter of the Business.’’) the damage, combined with the already seats in the national legislature. The PRESIDING OFFICER. The Sen- primitive economic conditions imposed This is not a constitution. This is a ator from Missouri is recognized. by the Burmese regime and the re- fig leaf to place over the junta’s op- Mr. BOND. Mr. President, I yield the gime’s sluggish response to the storm, pressive rule. floor. means this suffering will be far greater The people of Burma are already suf- f than it otherwise might have been and fering from the tragedy of a terrible NOTICE OF PROPOSED will last far longer than it otherwise natural disaster. Now they are being RULEMAKING would. forced to participate in a farce. Last We have heard reports that little or week’s cyclone revealed more than na- Mr. BYRD. Mr. President, I ask unan- no notice was given to the people about ture’s power and life’s fragility. It re- imous consent that the attached from the severity of the storm. And while vealed, once again, the inhumanity of the Office of Compliance be printed in the U.S. and other donors have ex- Burmese junta—not only in its dis- the RECORD today pursuant to section pressed a clear willingness to assist, regard for the people suffering from the 304(b)(1) of the Congressional Account- the Burmese regime has continued to storm, but also in its callous insistence ability Act of 1995 (2 U.S.C. 1384(b)(1)). resist allowing outside donors, such as that, in the midst of so much suffering, There being no objection, the mate- the U.S., in. a sham constitutional referendum vali- rial was ordered to be printed in the The U.S. has repeatedly dem- dating its authority go forward. RECORD, as follows: onstrated its willingness to help the This is a time of great sadness in U.S. CONGRESS, victims of natural disasters. Our gen- Burma. It is also a time of renewed OFFICE OF COMPLIANCE, erous response to the 2004; tsunami is a outrage at the oppressive regime that Washington, DC, April 16, 2008. tribute to generosity and compassion controls it. On occasion, the leaders of Hon. ROBERT C. BYRD President Pro Tempore, U.S. Senate, Hart Office of Americans, as was our response to such regimes reveal their warped minds Building, Washington, DC. the flooding of Bangladesh in the early to the world. This is such a time. It’s DEAR SENATOR BYRD: Section 304(b)(l) of 1990s. We responded generously to the my hope the world will take notice. the Congressional Accountability Act of 1995 1990 earthquake in the Philippines, an Mr. SMITH. Mr. President, I rise (CAA), 2 U.S.C. 1384(b)(l), requires that, with act of kindness that was met with deep today to address the terrible toll taken regard to the initial proposal of substantive gratitude. The U.S. has helped this re- by the recent cyclone in Burma. regulations under the CAA, the Board ‘‘shall gion of the world again and again, and It is unimaginable to me that the publish a general notice of proposed rule- people of Burma, already struggling making’’ and ‘‘shall transmit such notice to now we stand willing to help the people the Speaker of the House of Representatives of Burma. under the weight of tyranny, could be and the President Pro Tempore of the Senate Precious time has been, and con- expected to bear further hardship. The for publication in the Congressional Record tinues to be, wasted. Why? Because daily trudge for existence faced by the on the first day on which both Houses are in rather than focusing on preparations Burmese is heart-wrenching; and yet session following such transmittal.’’ for the storm, the political leaders in now their suffering has increased. On The Board of Directors of the Office of Burma were focused on a sham con- Saturday, May 3, their country was Compliance is transmitting herewith the en- stitutional referendum scheduled for struck by a horrible cyclone, an unfor- closed Notice of Proposed Rulemaking. The tunately common occurrence in South- Board requests that the accompanying No- this Saturday. While all of the energies tice be published in both the House and Sen- of government were needed to prepare east Asia. U.S. diplomats estimate the ate versions of the Congressional Record on for relief efforts, the regime was think- death toll from this storm could be as the first day on which both Houses are in ing of solidifying its control over the high as 100,000, victims of a 120 mph session following receipt of this transmittal. country. Its only concession to the wind and a storm surge that has oblit- Any inquiries regarding the accompanying critics—as the extent of the dead, the erated entire villages. The United Na- Notice should be addressed to Tamara E. missing, and the injured became tions estimates that hundreds of thou- Chrisler, Executive Director of the Office of known—was an agreement to postpone sands of people have been left without Compliance, 110 2nd Street, S.E., Room LA– 200, Washington, D.C. 20540; 202–724–9250, TDD the referendum in certain parts of the basic necessities such as food, potable 202–426–1912, [email protected]. country. water, and shelter. Sincerely, This is not the first time the Bur- The Burmese military regime has SUSAN S. ROBFOGEL, mese regime has put the political risks compounded this crisis through polit- Chair, Board of Directors. of letting in outsiders over urgent hu- ical repression, economic mismanage- (Editor’s note: The notice of Pro- manitarian needs. In 2004, the same ment, and xenophobia. But the tragedy posed Rulemaking is printed in the junta rejected foreign aid after the tsu- of Burma’s government cannot and RECORD dated April 21, 2008, at page nami. The only difference this time is should not blind us to the human suf- 6422) that the devastation to Burma and the fering inflicted by this most recent dis- f Burmese people is on a much larger aster. The international community scale. must take immediate steps to alleviate BURMA If Saturday’s referendum were legiti- some of the worst deprivations of this Mr. MCCONNELL. Mr. President, in mate, its timing would be merely irre- humanitarian crisis. To this end, I am these last days our sympathies have sponsible and crass. Yet everything proud and humbled that two of our own

VerDate Mar 15 2010 10:41 Dec 08, 2010 Jkt 069102 PO 00000 Frm 00038 Fmt 0686 Sfmt 0634 E:\BR08\S08MY8.001 S08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD 8128 CONGRESSIONAL RECORD—SENATE, Vol. 154, Pt. 6 May 8, 2008 Oregon institutions are leading the ef- fathers, who served in World War II, nally grateful for all that he gave. He fort in bringing comfort to the af- and his father Ron, who was in the Air has honored the United States, and the flicted. Northwest Medical Teams and Force during the Vietnam war. United States will always honor him. Mercy Corps are closely engaged in col- In the Marines, Glen quickly became SPECIALIST RONALD J. TUCKER lecting humanitarian donations and co- a leader among those he served. He was Mr. President, I also rise today to operating with local partners to help a member of Combat Logistics Bat- honor the life and service of Army Spe- the survivors in Burma. I urge the gov- talion-1, Combat Logistics Regiment-1, cialist Ronald J. Tucker, of Fountain, ernment in Burma to accept the for- 1st Marine Logistics Group, out of CO. Specialist Tucker was killed in eign assistance offered by these groups Camp Pendleton. He rose rapidly to the Baghdad last week, at the age of 21, and others around the world. rank of sergeant and, as with every- when a bomb exploded near his patrol. I know I speak for all Oregonians— thing he did, earned recognition and He was assigned to 1st Battalion, 22nd and indeed all Americans—when I say awards for the quality of his service. Infantry Regiment, 4th Infantry Divi- that our hearts go out to the survivors He served with his wife Sgt Melissa sion, out of Fort Hood, TX. of this storm. We stand ready to help, Martinez, whom he met while training Specialist Tucker grew up in the and I sincerely thank all those who are at Camp Pendleton. When Glen was Pikes Peak region of Colorado and was donating their time and resources to killed, they were both in Al Anbar a graduate of Fountain-Fort Carson help those stricken by this terrible dis- province, as part of an effort to keep High School. He was a hard-working, aster. the lid on the violence that once made smart, good-humored young man with the area among the most dangerous in f hopes of serving his country. In school, Iraq. he devoted himself to his studies, but HONORING OUR ARMED FORCES It is hard to measure all that in- shared laughs and jokes with friends SERGEANT GLEN E. MARTINEZ spired Sergeant Martinez’s service. He and teachers. Mr. SALAZAR. Mr. President, I rise had a deep-rooted pride for his country today to honor the life of Marine Sgt and his community. He sensed an obli- Ronald joined the Army just a few Glen Martinez and to share my deep gation to offer his talents to a cause days after his 2005 graduation from sadness at the loss of one of our Na- greater than his own. And he was de- high school. He trained to be a tion’s finest young men. Sergeant Mar- termined to rise to every challenge mortarman and, in 2006, was assigned tinez was on his second tour in Iraq, presented. to Fort Hood. He deployed earlier this working to restore peace and security He shared what so many of our na- year and was serving as an indirect fire to Al Anbar province, when a roadside tion’s great servicemembers and great infantryman in a unit that was work- bomb tore through his vehicle, killing leaders share—the sense, as President ing to calm the violence that has esca- him and three other marines. He was 31 Woodrow Wilson described it, that ‘‘the lated in Baghdad over the last several years old.7 fortunes of a nation are confided to weeks. Specialist Tucker worked tire- Our thoughts and prayers are with us.’’ lessly, courageously, and professionally Sergeant Martinez’s wife Melissa, his As World War I raged in Europe, to help bring calm to streets teeming parents Ron and Carol, his sister Lori, President Wilson told the 1916 class at with ethnic violence and to allow the and her children Alexis and Spencer, Annapolis that meeting this ‘‘special Iraqi people to hope again. his grandparents Isaac and Viola Mar- obligation’’ is perilous and difficult, Specialist Tucker followed in the tinez and Willard and Norma Martin, but it also carries the highest reward: footsteps of so many American soldiers and all his friends and family. My the honor and affection of their fellow who have honored their country with heart also goes out to the community citizens. their service, and who General Douglas of Monte Vista, CO, a small town in the ‘‘You are going to live your lives MacArthur regaled in a 1962 address to San Luis Valley not far from my fam- under the most stimulating compulsion West Point soldiers for their selfless ily’s ranch. The close-knit community, that any man can feel,’’ President Wil- sacrifices and for their unflinching de- where everyone is a neighbor, has lost son told the graduates, ‘‘the sense, not votion to the protection of our Nation. a favorite son. of private duty merely, but of public ‘‘Duty, honor, country,’’ MacArthur There was nothing, it seemed, that duty also. And then if you perform that told the young soldiers, ‘‘Those three Glen Martinez couldn’t do. In high duty, there is a reward awaiting you hallowed words reverently dictate what school, he was a top student, a gifted which is superior to any other reward you ought to be, what you can be, what musician, and a star athlete. He was in the world. That is the affectionate you will be.’’ the quarterback of the Monte Vista remembrance of your fellow men— These three words have been the football team, competed for the State their honor, their affection. No man creed of generation after generation of championship in wrestling, and led his could wish for more than that or find American soldiers. They help us under- baseball team. With college scholarship anything higher than that to strive stand the courage and fortitude of men offers to choose from in all three for.... I wish you Godspeed, and re- like Ronald Tucker, who deployed sports, Glen accepted an academic and mind you that yours is the honor of the thousands of miles from his family, baseball scholarship at Ottawa Univer- United States.’’ lived in constant peril, and shouldered sity in Ottawa, KS. He graduated with Sergeant Martinez answered the call the responsibility for keeping other a degree in mathematics in 2000, but of his country with the dignity and soldiers safe while securing a brighter continued his studies at Westwood Col- honor President Woodrow Wilson future for Iraqi citizens. lege and then at the University of Colo- extolled. Loved and respected by those Duty, honor, country. ‘‘The code rado, in Boulder, where he took up a with whom he served, his optimism and which those words perpetuate,’’ said master’s program in land surveying. leadership could lift and inspire even in General MacArthur, ‘‘embraces the At each step, Glen earned honors, the most difficult circumstances. He highest moral law and will stand the awards, and the admiration of those he was an irrepressible spirit and an ex- test of any ethics or philosophies ever met. He is remembered for his con- traordinary professional. promulgated for the things that are tagious smile, boundless energy, and a Sgt Glen Martinez’s achievements in right and its restraints are from the heart committed to service. In 2004, life are matched only by the depth of things that are wrong. The soldier, while living in Boulder, Glen deter- his sacrifice—and the void he leaves be- above all other men, is required to mined he had an obligation to serve his hind. To Glen’s family and friends, I practice the greatest act of religious country, and that he could contribute know no words that can ease the pain training—sacrifice . . . However hard most by enlisting in the Marines. By you feel. I hope that in time you will the incidents of war may be, the soldier donning the uniform, he joined a proud find consolation in your pride in Glen’s who is called upon to offer and to give family tradition of service and followed service and in the knowledge that his his life for his country is the noblest in the footsteps of both his grand- country and his community are eter- development of mankind.’’

VerDate Mar 15 2010 10:41 Dec 08, 2010 Jkt 069102 PO 00000 Frm 00039 Fmt 0686 Sfmt 0634 E:\BR08\S08MY8.001 S08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD May 8, 2008 CONGRESSIONAL RECORD—SENATE, Vol. 154, Pt. 6 8129 Specialist Ronald Tucker embodied WILD SKY WILDERNESS ACT Ekstrom, Doug Scott, Bill Arthur, this creed: He donned the soldier’s uni- Mrs. MURRAY. Mr. President, I rise Doug Walker, Nalani Askov, Dave form at his first opportunity, he brave- to celebrate a tremendous and hard- Sommers, Jennifer Stephens, and Cyn- ly entered the battlefield, and he of- fought victory. Today, a week after thia Wilkerson; as well as Shannon fered and gave his life in service to his this Congress approved it overwhelm- Harps and Karen Fant, whose memo- country. His is a debt we cannot repay. ingly, President Bush signed the public ries will live on through Wild Sky. To Ronald’s mother Susan, his step- lands bill that includes my Wild Sky And last but not least, I would like to father David, and to all his family and Wilderness Act. And I couldn’t be more thank the staff members who have also friends, I know no words that can ease thrilled. put their hearts and souls into this the pain you are feeling. I hope that in The path to creating the first wilder- bill: John Engber, Karen Waters, Doug time, however, the joy Ronald brought ness in Washington State in more than Clapp, Jaime Shimek, Jeff Bjornstad, to all who knew him and your pride in 20 years has been long and sometimes Evan Schatz, Alex Glass, Pete his service will provide comfort and rocky. But with the President’s signa- Weissman, Matt McAlvanah, Rick consolation. His country will always ture today, we have finally reached the Desimone, Rachelle Hein, Christy honor his sacrifice. top. Let me tell you, Mr. President, it Gullion, Carrie Desmond, Jennifer feels great! Talhelm, Rita Beal, Shawn Bills, Jill f This wilderness designation means McKinnie, Christian Gunter, Louis that over 106,000 acres of rolling hills, Lauter, Michael Dabbs, Kim Johnston, rushing rivers, and low-elevation forest Brandon Hall, Amanda Mahnke, Charla THE MATTHEW SHEPARD ACT OF in the Mt. Baker-Snoqualmie National Neuman, Abby Levenshus, Tracy 2007 Forest will be preserved for genera- Nagelbush, Amit Ronen, and Joel Mr. SMITH. Mr. President, I rise tions to enjoy. The bill has been the re- Merkel. today to speak about the need for hate sult of years of hard work by literally Those of us who live in the Northwest crimes legislation. Each Congress, Sen- dozens of people in my home State of are truly blessed to live so close to ator KENNEDY and I introduce hate Washington who have been as pas- such breathtaking natural beauty. The crimes legislation that would strength- sionate and excited about this bill as I people of Washington State have a en and add new categories to current have been. I could not be more proud of great respect for our amazing natural hate crimes law, sending a signal that their hard work and enthusiasm. Even heritage and millions of people spend violence of any kind is unacceptable in when progress seemed impossible, they their weekends hiking, camping, hunt- our society. Likewise, each Congress I never lost sight of their goal. They al- ing, fishing, and rock-climbing in our have come to the floor to highlight a ways believed that preserving this in- many parks and wild lands. separate violent crime that has oc- credible land was possible. And this The Wild Sky area is already a pop- curred in our country. beautiful new wilderness is their re- ular destination being enjoyed by hun- ward. dreds of people from across western On the night of April 4, 2008, a 17- When I spoke on the floor after the year-old Black man was traveling by Washington. And today’s wilderness Wild Sky bill passed this body, I prom- designation means that their children bus from Wilmington, DE, to New Cas- ised to return once it was signed and tle, DE, when three White men engaged and their grandchildren will be able to thank the many people who have enjoy the land just as they do. him in a physical altercation. David worked so hard with me over the years and Lloyd Walker, 27 and 23 years old Today’s designation is a gift to to make the Wild Sky Wilderness a re- young families, lifelong outdoor enthu- respectively, were identified by wit- ality. So I want to begin by thanking nesses and arrested, but their accom- siasts, and everyone in between. And I Congressman RICK LARSEN. Nine years plice, known only as ‘‘Ritchie,’’ is still am so glad to see this proposal over the have passed since the first maps pro- finish line. Now I can’t wait to lace up at large. According to police, the three posing this wilderness were unfurled at men began to argue with the young my tennis shoes and take those first a meeting in my Seattle office. I have steps into the Wild Sky Wilderness! man when he complained that they been working with Congressman were bumping into him. When the 17- f LARSEN in the House for more than 7 year-old man got off the bus, the three years on the legislation. And I couldn’t ADDITIONAL STATEMENTS men followed and attacked him, have asked for a better partner. yelling racial slurs and threatening to I would like to thank Chairman TRIBUTE TO MARGARET AITKEN kill him. Police say David Walker BINGAMAN and his staff—especially stabbed the teen five times in the back, David Brooks and Bob Simon—for their ∑ Mr. BIDEN. Mr. President, Mark puncturing one of his lungs and inflict- help and unwavering support of Wild Twain once said: ‘‘20 years from now ing more stab wounds on his forearm. Sky throughout the years. I would like you will be more disappointed by the The three men fled the scene imme- to thank Senator MARIA CANTWELL and things that you didn’t do, than by the diately after the stabbing. Both David Congressman JAY INSLEE for their things you did do.’’ Well, Mr. Twain and Lloyd Walker were charged with work in steering Wild Sky through had not met Margaret Aitken, the first-degree assault, possession of a their committees. And thank you to all woman I wish to acknowledge today. deadly weapon during a felony, felony of the cosponsors from the Washington Margaret is the youngest of eight hate crime, and conspiracy. delegation. children—a born negotiator, advocate, I believe that the Government’s first Above all, I want to thank all of the and spirited woman who has dedicated duty is to defend its citizens, to defend people in Washington State who her professional career to excellence in them against the harms that come out worked tirelessly to turn their vision public service. She has served the peo- of hate. Federal laws intended to pro- into legislation and—finally into law. ple of Delaware and the U.S. Senate tect individuals from heinous and vio- The following individuals have spent with distinction. lent crimes motivated by hate are woe- countless hours to make the Wild Sky She began her career in the Senate as fully inadequate. This legislation Wilderness Area a reality: Mike Town, a press secretary on my staff at the would better equip the Government to Tom Uniack, Larry Romans, Mark young age of 27. She came to us with fulfill its most important obligation by Lawler, Harry Romberg, Norm Winn, impeccable credentials from the coun- providing the resources necessary to Don Parks, Charlie Raines, Jon Owen, ty executive’s team and the Depart- adequately investigate and prosecute John Leary, Michael Carroll, Rick ment of Education. Her work ethic and violent crimes. I believe that by pass- McGuire, Bill and Sue Cross, Bob Hub- energy are surpassed only by her keen ing this legislation and changing cur- bard, Conway Leovy, Mark Heckert, wit and disarming use of humor. rent law, we can change hearts and Kem Hunter, Aaron Reardon, Peter Margaret’s sense of justice is embed- minds as well. Jackson, Michelle Ackerman, Jennifer ded in her character—a byproduct of

VerDate Mar 15 2010 10:41 Dec 08, 2010 Jkt 069102 PO 00000 Frm 00040 Fmt 0686 Sfmt 0634 E:\BR08\S08MY8.001 S08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD 8130 CONGRESSIONAL RECORD—SENATE, Vol. 154, Pt. 6 May 8, 2008 her strong faith and commitment to TRIBUTE TO CHIEF MASTER vious all-division record by more than family. Her professional constituency SERGEANT GLENN FREEMAN 600 yards. was well served by her 15 years in the ∑ Mr. HAGEL. Mr. President, today I It is not the only NCAA record set by public domain. However, Margaret re- wish to praise CMSgt Glenn Freeman, this native son from North Platte, NE. cently decided that there was one con- U.S. Air Force, Retired, of Omaha, who During the 2006 season, Danny set the stituency that needed her most of all. was honored on April 26 by the Na- single-season record for rushing for all In August, she and her husband Chris tional Guard Association of Nebraska NCAA divisions as he rushed for 2,756 became the proud parents of Ronan with the Distinguished Service Award. yards on 344 carries. He became the William Haggerty, and Margaret is now Chief Freeman has worked in my first player in NCAA history to ever a full-time mom. Omaha office as senior aide for mili- rush for more than 2,700 yards in a sea- She understood the wisdom and the tary and veterans affairs, assisting son. sentiment in Mark Twain’s words and servicemembers and their families, for Danny Woodhead also ranks second so—she will not be disappointed in the past 11 years. He is receiving the in the Nation in career all-purpose hindsight. Margaret, a wordsmith her- award in recognition of his dedicated yardage, with 9,479 yards. His 109 career self, also took George Bernard Shaw to service to the Nebraska National touchdowns tie the NCAA record, and heart: ‘‘Perhaps the greatest social Guard. his 654 career points rank him second. service that can be rendered by anyone Glenn has served the State of Ne- For his outstanding football achieve- to this country and to mankind is to braska and our country in a manner ments, Danny Woodhead was awarded bring up a family.’’ that deserves high recognition and our the Harlon Hill Trophy for the second And so I say to you Margaret—bring deepest respect. He is a friend and has year in a row. Similar to the Heisman, up that family—in the image and like- been invaluable to my office. Over the the Harlon Hill Trophy is given annu- ness of the best hopes and expectations last 11 years, Glenn has helped thou- ally to the college football player of for a better world. Thank you for your sands of Nebraska’s military families the year in NCAA Division II. service, goodness, loyalty, honor, and with casework and veterans issues. The State of Nebraska has a storied courage. You are a force unto yourself, Glenn is an American role model. college football tradition; but no one and you are very appreciated.∑ Chief Freeman, originally from has ever witnessed a running back f Washington, DC, served in the Air compile the prodigious statistics that Danny Woodhead, a math education TRIBUTE TO VALORIA LOVELAND Force for 30 years, retiring in 1985. His decorations include the Bronze Star major, did during his career with the ∑ Ms. CANTWELL. Mr. President, Medal, three Meritorious Service Med- Eagles. Although he played for a small today I wish to recognize Valoria als, four Air Force Commendation med- college in a rural state, his abilities Loveland, who recently stepped down als, and the Air Force Outstanding caught the attention of the sporting from her position as the director of the Unit Award with Combat V, Valor—De- world. Washington State Department of Agri- vice. Chief Freeman served tours in The people of Nebraska are proud of culture. Ms. Loveland has worked in Vietnam, Thailand, Guam, Newfound- Danny Woodhead and his remarkable Washington State and local govern- land, Korea, Japan, and the Republic of achievements, and we look forward to ments for the past 44 years, and she has the Philippines. watching him pursue his dreams in recently retired to some well-deserved Prior to joining my staff, Chief Free- football and beyond.∑ relaxation in her home of Pasco, WA. man was hospital service coordinator f Ms. Loveland’s career in government for disabled American veterans. As a began at the Franklin County Court- senior aide to me, he continues to work MESSAGES FROM THE PRESIDENT house, where she worked before and closely with veterans service organiza- Messages from the President of the while she was the county’s treasurer. tions while assisting veterans and mili- United States were communicated to In 1992, she was elected to the State tary families across Nebraska. the Senate by Mrs. Neiman, one of his senate, where she swiftly rose to be- Chief Freeman has served as presi- secretaries. come the chair of the Ways and Means dent of the Omaha Chapter Freedoms f Committee, and the most powerful Foundation at Valley Forge, a non- woman in the Washington State Legis- profit organization which seeks to pre- EXECUTIVE MESSAGES REFERRED lature. After 8 years in the senate, and serve American ideals and principles As in executive session the Presiding a brief 2-year break from government, by helping students become responsible Officer laid before the Senate messages Valoria was appointed director of the and active citizens. He has additionally from the President of the United Washington State Department of Agri- served on the Omaha Civil Rights Advi- States submitting sundry nominations culture, where she served for the last 6 sory Committee and as chairman of the which were referred to the appropriate years. In her time as director, Wash- Douglas County Republican Party and committees. (The nominations received ington’s agricultural exports have the Republican Forum. He delivers col- today are printed at the end of the Sen- risen to record highs, in large part, lege lectures across Nebraska as a rec- ate proceedings.) thanks to her leadership. Her multiple ognized scholar on the American polit- trips to China, Japan, and Mexico have ical process and the U.S. Constitution.∑ f extended numerous opportunities to f MESSAGES FROM THE HOUSE Washington State growers, and I thank her for working towards opening those IN RECOGNITION OF DANNY WOODHEAD markets. ENROLLED BILL SIGNED Throughout her career, Valoria ∑ Mr. NELSON of Nebraska. Mr. Presi- Loveland has been known for her abil- dent, today I pay tribute to a young At 9:33 a.m., a message from the ity to get things done and solve prob- Nebraskan who recently became a House of Representatives, delivered by lems. Never one to shy away from member of the New York Jets, after Mrs. Cole, one of its reading clerks, an- tough issues, her straightforward man- completing a remarkable 4-year run nounced that the Speaker has signed ner and tireless work ethic have earned into the National Collegiate Athletic the following enrolled bill: her the respect of many. Association, NCAA, record books as H.R. 3522. An act to ratify a conveyance of Ms. Loveland’s leadership will be the all-time leading rusher at any level a portion of the Jicarilla Apache Reservation sorely missed in Washington State, to Rio Arriba County, State of New Mexico, of college football. pursuant to the settlement of litigation be- which has benefitted greatly from her Danny Woodhead, a senior tailback tween the Jicarilla Apache Nation and Rio years of service. I wish her well, and for Chadron State College in Nebraska, Arriba County, State of New Mexico, to au- thank her for her dedication to the completed his college football career thorize issuance of a patent for said lands, State of Washington.∑ with 7,962 yards rushing to top the pre- and to change the exterior boundary of the

VerDate Mar 15 2010 10:41 Dec 08, 2010 Jkt 069102 PO 00000 Frm 00041 Fmt 0686 Sfmt 0634 E:\BR08\S08MY8.001 S08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD May 8, 2008 CONGRESSIONAL RECORD—SENATE, Vol. 154, Pt. 6 8131 Jicarilla Apache Reservation accordingly, By Mr. INOUYE, from the Committee on By Mr. ROCKEFELLER: and for other purposes. Commerce, Science, and Transportation, S. 2996. An original bill to authorize appro- The enrolled bill was subsequently without amendment: priations for fiscal year 2009 for intelligence signed by the President pro tempore S.J. Res. 28. A joint resolution dis- and intelligence-related activities of the approving the rule submitted by the Federal United States Government, the Community (Mr. BYRD). Communications Commission with respect Management Account, and the Central Intel- f to broadcast media ownership (Rept. No. 110– ligence Agency Retirement and Disability 334). System, and for other purposes; from the Se- ENROLLED BILL SIGNED By Mr. LEAHY, from the Committee on lect Committee on Intelligence; placed on The President pro tempore (Mr. the Judiciary, without amendment and with the calendar. BYRD) announced that on today, May 8, a preamble: By Mr. LAUTENBERG (for himself, 2008, he had signed the following en- S. Res. 537. A resolution commemorating Mr. STEVENS, and Mr. SMITH): and acknowledging the dedication and sac- S. 2997. A bill to reauthorize the Maritime rolled bill, which was previously signed rifice made by the men and women who have Administration, and for other purposes; to by the Speaker of the House: lost their lives while serving as law enforce- the Committee on Commerce, Science, and H.R. 5919. An act to make technical correc- ment officers. Transportation. tions regarding the Newborn Screening By Mr. NELSON of Florida (for him- f Saves Lives Act of 2007. self, Ms. SNOWE, Mr. KERRY, and Mr. EXECUTIVE REPORTS OF MARTINEZ): At 12:55 p.m., a message from the COMMITTEES S. 2998. A bill to require accurate and rea- House of Representatives, delivered by sonable disclosure of the terms and condi- Mrs. Cole, one of its reading clerks, an- The following executive reports of tions of prepaid telephone calling cards and nounced that the House has passed the nominations were submitted: services, and for other purposes; to the Com- following bill, in which it requests the By Mr. LIEBERMAN for the Committee on mittee on Commerce, Science, and Transpor- tation. concurrence of the Senate: Homeland Security and Governmental Af- fairs. By Mr. BROWN (for himself, Mr. SPEC- H.R. 5937. An act to facilitate the preserva- *Alejandro Modesto Sanchez, of Florida, to TER, and Mr. WHITEHOUSE): tion of certain affordable housing dwelling be a Member of the Federal Retirement S. 2999. A bill to amend the Public Health units. Thrift Investment Board for a term expiring Service Act, the Employee Retirement In- The message also announced that October 11, 2010. come Security Act of 1974, and the Internal pursuant to section 1853(a) of the Im- *Gordon James Whiting, of New York, to Revenue Code of 1986 to require group and in- plementing Recommendations of the be a Member of the Federal Retirement dividual health insurance coverage and Thrift Investment Board for a term expiring group health plans to provide coverage for 9/11 Commission Act of 2007 (Public individuals participating in approved cancer Law 110–53), and the order of the House September 25, 2010. *Andrew Saul, of New York, to be a Mem- clinical trials; to the Committee on Health, of January 4,2007, the Speaker appoints ber of the Federal Retirement Thrift Invest- Education, Labor, and Pensions. the following members on the part of ment Board for a term expiring September By Mr. AKAKA (for himself and Mr. the House of Representatives to the 25, 2008. INOUYE): Commission on the Prevention of *Andrew Saul, of New York, to be a Mem- S. 3000. A bill to amend title 38, United Weapons of Mass Destruction Prolifera- ber of the Federal Retirement Thrift Invest- States Code, to include Federally recognized tion and Terrorism: Mr. Timothy J. ment Board for a term expiring September tribal organizations in certain grant pro- 25, 2012. grams of the Department of Veterans Affairs Roemer of Great Falls, Virginia, and for the several States and territories, and for Ms. Wendy R. Sherman of Bethesda, *Nanci E. Langley, of Virginia, to be a Commissioner of the Postal Regulatory other purposes; to the Committee on Vet- Maryland. Commission for a term expiring November erans’ Affairs. f 22, 2012. f MEASURES REFERRED *Nomination was reported with rec- SUBMISSION OF CONCURRENT AND ommendation that it be confirmed subject to SENATE RESOLUTIONS The following bill was read the first the nominee’s commitment to respond to re- and the second times by unanimous quests to appear and testify before any duly The following concurrent resolutions consent, and referred as indicated: constituted committee of the Senate. and Senate resolutions were read, and H.R. 5937. An act to facilitate the preserva- f referred (or acted upon), as indicated: tion of certain affordable housing dwelling By Mr. ENZI (for himself, Mr. NELSON units; to the Committee on Banking, Hous- INTRODUCTION OF BILLS AND of Florida, Mr. WICKER, and Mr. NEL- ing, and Urban Affairs. JOINT RESOLUTIONS SON of Nebraska): f The following bills and joint resolu- S. Res. 555. A resolution recognizing the tions were introduced, read the first 100th anniversary of the founding of the Con- MEASURES PLACED ON THE gressional Club; to the Committee on the Ju- and second times by unanimous con- CALENDAR diciary. sent, and referred as indicated: By Ms. LANDRIEU (for herself, Mr. AL- The following bill was read the sec- By Ms. KLOBUCHAR (for herself, Mr. EXANDER, Mr. LIEBERMAN, Mr. BURR, ond time, and placed on the calendar: ENZI, Mr. HARKIN, and Mr. DURBIN): Mr. VITTER, Mr. GREGG, Mr. SUNUNU, S. 2991. A bill to provide energy price relief S. 2993. A bill to amend the Public Health Mr. ALLARD, Mr. ISAKSON, and Mr. and hold oil companies and other entities ac- Service Act to facilitate emergency medical CARPER): countable for their actions with regard to services personnel training and certification S. Res. 556. A resolution congratulating high energy prices, and for other purposes. curriculums for military veterans; to the charter schools and their students, parents, Committee on Health, Education, Labor, and teachers, and administrators across the f Pensions. United States for their ongoing contribu- REPORTS OF COMMITTEES By Mr. LEVIN (for himself, Mr. tions to education, and for other purposes; VOINOVICH, Ms. STABENOW, Mr. considered and agreed to. The following reports of committees OBAMA, Mr. BROWN, Mrs. CLINTON, By Mr. LAUTENBERG (for himself, were submitted: Mr. SCHUMER, and Ms. KLOBUCHAR): Mrs. HUTCHISON, Mr. BAUCUS, Mr. By Mr. ROCKEFELLER, from the Select S. 2994. A bill to amend the Federal Water BIDEN, Mr. CARPER, Mrs. CLINTON, Committee on Intelligence, without amend- Pollution Control Act to provide for the re- Mr. DORGAN, Mr. DURBIN, Mr. KERRY, ment: mediation of sediment contamination in Mr. MENENDEZ, Mr. SCHUMER, Mr. S. 2996. An original bill to authorize appro- areas of concern; to the Committee on Envi- WHITEHOUSE, Mr. WYDEN, Mr. DOMEN- priations for fiscal year 2009 for intelligence ronment and Public Works. ICI, Ms. SNOWE, Mr. CRAPO, Mr. COCH- and intelligence-related activities of the By Mr. LEVIN (for himself and Mrs. RAN, Mr. SPECTER, Mr. LIEBERMAN, United States Government, the Community FEINSTEIN): Mr. BAYH, and Mr. BROWN): Management Account, and the Central Intel- S. 2995. A bill to amend the Commodity Ex- S. Res. 557. A resolution supporting the ligence Agency Retirement and Disability change Act to enhance oil trading trans- goals and ideals of National Train Day; to System, and for other purposes (Rept. No. parency; to the Committee on Agriculture, the Committee on Commerce, Science, and 110–333). Nutrition, and Forestry. Transportation.

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ADDITIONAL COSPONSORS S. 2161 (Mr. CARDIN) was added as a cosponsor SAKSON S. 394 At the request of Mr. I , the of S. 2511, a bill to amend the grant name of the Senator from Kansas (Mr. At the request of Mr. AKAKA, the program for law enforcement armor names of the Senator from Washington ROBERTS) was added as a cosponsor of vests to provide for a waiver of or re- S. 2161, a bill to ensure and foster con- (Mrs. MURRAY) and the Senator from duction in the matching funds require- tinued patient safety and quality of Washington (Ms. CANTWELL) were ment in the case of fiscal hardship. added as cosponsors of S. 394, a bill to care by making the antitrust laws S. 2523 apply to negotiations between groups amend the Humane Methods of Live- At the request of Mr. KERRY, the of independent pharmacies and health stock Slaughter Act of 1958 to ensure name of the Senator from Pennsyl- plans and health insurance issuers (in- the humane slaughter of non- vania (Mr. CASEY) was added as a co- cluding health plans under parts C and ambulatory livestock, and for other sponsor of S. 2523, a bill to establish D of the Medicare Program) in the purposes. the National Affordable Housing Trust same manner as such laws apply to Fund in the Treasury of the United S. 573 protected activities under the National States to provide for the construction, At the request of Ms. STABENOW, the Labor Relations Act. rehabilitation, and preservation of de- name of the Senator from Massachu- S. 2173 cent, safe, and affordable housing for setts (Mr. KERRY) was added as a co- At the request of Mr. HARKIN, the low-income families. sponsor of S. 573, a bill to amend the names of the Senator from Montana Federal Food, Drug, and Cosmetic Act S. 2544 (Mr. TESTER), the Senator from and the Public Health Service Act to At the request of Mr. KENNEDY, the Vermont (Mr. SANDERS) and the Sen- improve the prevention, diagnosis, and name of the Senator from Vermont ator from Indiana (Mr. BAYH) were (Mr. SANDERS) was added as a cospon- treatment of heart disease, stroke, and added as cosponsors of S. 2173, a bill to sor of S. 2544, a bill to provide for a other cardiovascular diseases in amend the Elementary and Secondary program of temporary extended unem- women. Education Act of 1965 to improve ployment compensation. S. 717 standards for physical education. S. 2559 At the request of Mr. AKAKA, the S. 2182 At the request of Mr. DODD, the name name of the Senator from Missouri At the request of Mr. REED, the name of the Senator from Louisiana (Mr. (Mrs. MCCASKILL) was added as a co- of the Senator from Vermont (Mr. VITTER) was added as a cosponsor of S. sponsor of S. 717, a bill to repeal title SANDERS) was added as a cosponsor of 2559, a bill to amend title II of the So- II of the REAL ID Act of 2005, to re- S. 2182, a bill to amend the Public cial Security Act to increase the level store section 7212 of the Intelligence Health Service Act with respect to of earnings under which no individual Reform and Terrorism Prevention Act mental health services. who is blind is determined to have of 2004, which provides States addi- S. 2227 demonstrated an ability to engage in tional regulatory flexibility and fund- At the request of Mr. OBAMA, the substantial gainful activity for pur- ing authorization to more rapidly name of the Senator from Vermont poses of determining disability. produce tamper- and counterfeit-resist- (Mr. SANDERS) was added as a cospon- S. 2565 ant driver’s licenses, and to protect sor of S. 2227, a bill to provide grants to At the request of Mr. BIDEN, the privacy and civil liberties by providing States to ensure that all students in name of the Senator from Alaska (Mr. interested stakeholders on a negotiated the middle grades are taught an aca- STEVENS) was added as a cosponsor of rulemaking with guidance to achieve demically rigorous curriculum with ef- S. 2565, a bill to establish an awards improved 21st century licenses to im- fective supports so that students com- mechanism to honor exceptional acts prove national security. plete the middle grades prepared for of bravery in the line of duty by Fed- S. 911 success in high school and postsec- eral law enforcement officers. EED At the request of Mr. R , the name ondary endeavors, to improve State S. 2756 of the Senator from Alabama (Mr. SES- and district policies and programs re- At the request of Mr. BIDEN, the SIONS) was added as a cosponsor of S. lating to the academic achievement of name of the Senator from Minnesota 911, a bill to amend the Public Health students in the middle grades, to de- (Mr. COLEMAN) was added as a cospon- Service Act to advance medical re- velop and implement effective middle sor of S. 2756, a bill to amend the Na- search and treatments into pediatric school models for struggling students, tional Child Protection Act of 1993 to cancers, ensure patients and families and for other purposes. establish a permanent background have access to the current treatments S. 2433 check system. and information regarding pediatric At the request of Mr. OBAMA, the S. 2874 cancers, establish a population-based name of the Senator from Ohio (Mr. At the request of Mrs. FEINSTEIN, the national childhood cancer database, BROWN) was added as a cosponsor of S. name of the Senator from Alaska (Mr. and promote public awareness of pedi- 2433, a bill to require the President to STEVENS) was added as a cosponsor of atric cancers. develop and implement a comprehen- S. 2874, a bill to amend titles 5, 10, 37, S. 1067 sive strategy to further the United and 38, United States Code, to ensure At the request of Mr. OBAMA, the States foreign policy objective of pro- the fair treatment of a member of the name of the Senator from Michigan moting the reduction of global poverty, Armed Forces who is discharged from (Mr. LEVIN) was added as a cosponsor of the elimination of extreme global pov- the Armed Forces, at the request of the S. 1067, a bill to require Federal agen- erty, and the achievement of the Mil- member, pursuant to the Department cies to support health impact assess- lennium Development Goal of reducing of Defense policy permitting the early ments and take other actions to im- by one-half the proportion of people discharge of a member who is the only prove health and the environmental worldwide, between 1990 and 2015, who surviving child in a family in which the quality of communities, and for other live on less than $1 per day. father or mother, or one or more sib- purposes. S. 2479 lings, served in the Armed Forces and, S. 1963 At the request of Mr. BROWN, the because of hazards incident to such At the request of Mr. ROCKEFELLER, name of the Senator from North Caro- service, was killed, died as a result of the name of the Senator from Montana lina (Mrs. DOLE) was added as a cospon- wounds, accident, or disease, is in a (Mr. TESTER) was added as a cosponsor sor of S. 2479, a bill to catalyze change captured or missing in action status, or of S. 1963, a bill to amend the Internal in the care and treatment of diabetes is permanently disabled, and for other Revenue Code of 1986 to allow bonds in the United States. purposes. guaranteed by the Federal home loan S. 2511 S. 2884 banks to be treated as tax exempt At the request of Mr. LEAHY, the At the request of Ms. COLLINS, the bonds. name of the Senator from Maryland name of the Senator from Tennessee

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(Mr. ALEXANDER) was added as a co- STATEMENTS ON INTRODUCED Commission, State Attorneys General, sponsor of S. 2884, a bill to amend the BILLS AND JOINT RESOLUTIONS and State consumer protection advo- Internal Revenue Code of 1986 to pro- By Mr. NELSON of Florida (for cates the ability to sue the fraudsters vide incentives to improve America’s himself, Ms. SNOWE, Mr. KERRY, who violate these requirements in Fed- eral court. In addition, the law ex- research competitiveness, and for other and Mr. MARTINEZ:) purposes. S. 2998. A bill to require accurate and pressly preserves additional state con- sumer protection requirements—such S. 2938 reasonable disclosure of the terms and conditions of prepaid telephone calling as state utility commission certifi- At the request of Mr. GRAHAM, the cation or bonding requirements. name of the Senator from Idaho (Mr. cards and services, and for other pur- poses; to the Committee on Commerce, I invite my colleagues to join with CRAIG) was added as a cosponsor of S. Science, and Transportation. Senators SNOWE, KERRY, MARTINEZ and 2938, a bill to amend titles 10 and 38, Mr. NELSON of Florida. Mr. Presi- myself in supporting the Prepaid Call- United States Code, to improve edu- dent, prepaid telephone calling cards ing Card Consumer Protection Act of cational assistance for members of the are used by many Americans to stay in 2008. We should waste no time in ensur- Armed Forces and veterans in order to touch with loved ones around the coun- ing that military servicemembers, sen- enhance recruitment and retention for try and throughout the world. Unfortu- iors, immigrants and other Americans the Armed Forces, and for other pur- nately, some providers and distributors using these prepaid telephone calling poses. of these cards are scamming con- cards are protected from bad actors in S. 2942 sumers—by imposing undisclosed junk the marketplace. fees, charging exorbitant rates, and Mr. President, I ask unanimous con- At the request of Mr. CARDIN, the sent that the text of the bill be printed names of the Senator from Oregon (Mr. selling cards that expire shortly after consumers start using them. in the RECORD. SMITH), the Senator from Oregon (Mr. Over the past couple of years, a num- There being no objection, the text of WYDEN) and the Senator from Min- ber of State Attorneys General and the the bill was ordered to be printed in nesota (Ms. KLOBUCHAR) were added as Federal Trade Commission have opened the RECORD, as follows: cosponsors of S. 2942, a bill to authorize investigations and found that a number S. 2998 funding for the National Advocacy Cen- of providers and distributors are engag- Be it enacted by the Senate and House of Rep- ter. ing in unfair and deceptive business resentatives of the United States of America in S. 2979 practices. These practices include Congress assembled, charging customers for calls where SECTION 1. SHORT TITLE. At the request of Mr. KERRY, the This Act may be cited as the ‘‘Prepaid names of the Senator from Delaware they receive busy signals, imposing weekly ‘‘maintenance fees’’ that may Calling Card Consumer Protection Act of (Mr. BIDEN) and the Senator from 2008’’. take away up to 20 percent of the Michigan (Mr. LEVIN) were added as co- SEC. 2. DEFINITIONS. sponsors of S. 2979, a bill to exempt the card’s overall value, and billing for In this Act: African National Congress from treat- calls in 3-minute increments. (1) COMMISSION.—The term ‘‘Commission’’ As a result of these investigations, ment as a terrorist organization, and means the Federal Trade Commission. some companies have been fined or for other purposes. (2) FEES.— have entered into consent decrees for- (A) IN GENERAL.—The term ‘‘fees’’ means S. 2991 bidding them from engaging in some all charges, fees, taxes, or surcharges, in- At the request of Mr. KOHL, his name deceptive practices. In addition, some cluding connection, hang-up, service, was added as a cosponsor of S. 2991, a states—including Florida—have im- payphone, and maintenance charges, which posed certain regulatory requirements may be applicable to the use of a prepaid bill to provide energy price relief and telephone calling card or a prepaid telephone hold oil companies and other entities on prepaid calling card providers and calling service used by a consumer for calls accountable for their actions with re- distributors. To date, however, neither originating within the United States. gard to high energy prices, and for the Federal Communications Commis- (B) EXCLUSION.—The term ‘‘fees’’ does not other purposes. sion nor the Federal Trade Commission include the applicable per unit or per minute has taken any action to impose up- rate for the particular destination called by S. RES. 537 front nationwide consumer protection a consumer. At the request of Mr. LEAHY, the requirements on this industry. This (3) INTERNATIONAL PREFERRED DESTINA- names of the Senator from California lack of Federal standards allows many TION.—The term ‘‘international preferred (Mrs. FEINSTEIN), the Senator from of these unscrupulous operators to destination’’ means a specific international destination named on a prepaid telephone New York (Mr. SCHUMER), the Senator move from State to State, and create calling card or on the packaging material ac- from Utah (Mr. HATCH), the Senator new ‘‘shell companies’’ to escape con- companying a prepaid telephone calling from Delaware (Mr. BIDEN), the Sen- sumer protection regulations. This is card. ator from Maryland (Mr. CARDIN), the wrong, and I think we need to fix this (4) PREPAID TELEPHONE CALLING CARD.— Senator from Rhode Island (Mr. situation. (A) IN GENERAL.—The terms ‘‘prepaid tele- WHITEHOUSE), the Senator from Mon- That is why I rise today to introduce phone calling card’’ and ‘‘card’’ mean any tana (Mr. BAUCUS) and the Senator the Prepaid Calling Card Consumer right of use purchased in advance for a sum from California (Mrs. BOXER) were Protection Act of 2008. certain linked to an access number and au- added as cosponsors of S. Res. 537, a The Prepaid Calling Card Consumer thorization code that enables a consumer to use a prepaid telephone calling service. Such resolution commemorating and ac- Protection Act of 2008 requires the Fed- eral Trade Commission to draft com- rights of use may be embodied on a card or knowledging the dedication and sac- other physical object or may be purchased by rifice made by the men and women who prehensive rules requiring all prepaid an electronic or telephonic means through have lost their lives while serving as telephone calling card providers and which the purchaser obtains access numbers law enforcement officers. distributors to disclose the rates and and authorization codes that are not phys- fees associated with their calling cards ically located on a card or other physical ob- AMENDMENT NO. 4718 upfront, at the point of sale. It also re- ject. At the request of Mrs. FEINSTEIN, the quires providers who market their (B) EXCLUSION.—The terms ‘‘prepaid tele- name of the Senator from Louisiana cards in languages other than English phone calling card’’ and ‘‘card’’ do not in- (Ms. LANDRIEU) was added as a cospon- to disclose rates and fees in that lan- clude cards or other rights of use that pro- sor of amendment No. 4718 intended to guage as well. Furthermore, the legis- vide access to— be proposed to S. 2284, an original bill (i) a telecommunications service with re- lation requires providers to honor the spect to which the card or other rights of use to amend the National Flood Insurance cards for at least a year after the time and the telecommunications service are pro- Act of 1968, to restore the financial sol- the card is first used. vided for free or at no additional charge as a vency of the flood insurance fund, and To enforce these disclosure require- promotional item accompanying a product for other purposes. ments, the bill gives the Federal Trade or service purchased by a consumer; or

VerDate Mar 15 2010 10:41 Dec 08, 2010 Jkt 069102 PO 00000 Frm 00044 Fmt 0686 Sfmt 0634 E:\BR08\S08MY8.001 S08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD 8134 CONGRESSIONAL RECORD—SENATE, Vol. 154, Pt. 6 May 8, 2008 (ii) a wireless telecommunications service (3) The applicable per minute rates for all telephone calling card any fee or other account with a wireless service provider that individual international destinations served amount for use of the prepaid telephone call- the purchaser has a preexisting relationship by such card or service. ing service, except— with or establishes a carrier-customer rela- (4) That the rates described in paragraph (A) the per minute rate or value for each tionship with via the purchase of a prepaid (3) may be obtained through the prepaid tele- particular destination called by the con- wireless telecommunications service handset phone calling card provider’s toll-free cus- sumer; and package. tomer service number or Internet website. (B) fees that are disclosed as required by (5) PREPAID TELEPHONE CALLING CARD DIS- (5) All terms and conditions pertaining to regulations prescribed under section 3. TRIBUTOR.— the use of such card or service, including the (2) MINUTES AND RATES AS PROMOTED AND (A) IN GENERAL.—The term ‘‘prepaid tele- following: ADVERTISED.—With respect to a prepaid tele- phone calling card distributor’’ means any (A) The maximum amount and frequency phone calling card for a service of the pre- entity, corporation, company, association, of all fees. paid telephone calling service provider, to firm, partnership, or person that purchases (B) Applicable policies relating to refund, provide fewer minutes than the number of prepaid telephone calling cards or services recharge, decrement, and expiration. minutes promoted or advertised, or to charge from a prepaid telephone calling card dis- (C) Limitations, if any, on the use or pe- a higher per minute rate to a specific des- tributor or prepaid telephone calling service riod of time for which the displayed, pro- tination than the per minute rate to that provider and sells, resells, issues, or distrib- moted, or advertised minutes or rates will be specific destination promoted or advertised, utes prepaid telephone calling cards for a fee available to the customer. on— to 1 or more distributors of such cards or to (6) The name and address of such service (A) the prepaid telephone calling card; 1 or more retail sellers of such cards. provider. (B) any point-of-sale material relating to (B) EXCLUSION.—The term ‘‘prepaid tele- (7) A toll-free telephone number to contact the card; or phone calling card distributor’’ does not in- the customer service department of such (C) other advertising related to the card or clude any retail merchants or sellers of pre- service provider and the hours of service of service. paid telephone calling cards exclusively en- such customer service department. (3) MINUTES ANNOUNCED, PROMOTED, AND AD- gaged in point-of-sale transactions with end- (b) CLEAR AND CONSPICUOUS DISCLOSURE OF VERTISED THROUGH VOICE PROMPTS.—To pro- user customers. REQUIRED INFORMATION AND LANGUAGE RE- vide fewer minutes than the number of min- (6) PREPAID TELEPHONE CALLING SERVICE.— QUIREMENTS.—The regulations prescribed utes announced, promoted, or advertised (A) IN GENERAL.—The terms ‘‘prepaid tele- under subsection (a) shall include require- through any voice prompt given by the pre- phone calling service’’ and ‘‘service’’ mean ments as follows: paid telephone calling service provider to a any telecommunications service, paid for in (1) CARDS.—In the case of a prepaid tele- consumer at the time the consumer places a advance by a consumer, that allows a con- phone calling card, the disclosures described call to a dialed destination with a prepaid sumer to originate voice telephone calls in subsection (a) (other than paragraph (3) of telephone calling card or service. through a local, long distance, or toll-free such subsection) shall be printed in plain (4) EXPIRATION.—Unless a different expira- access number and authorization code, English in a clear and conspicuous location tion date is clearly disclosed pursuant to the whether manually or electronically dialed. on each prepaid telephone calling card or the disclosure requirements of regulations pre- (B) EXCLUSION.—The terms ‘‘prepaid tele- packaging of such card so that such disclo- scribed under section 3, to provide, sell, re- phone calling service’’ and ‘‘service’’ do not sures are plainly visible to a consumer at the sell, issue, or distribute a prepaid telephone include any service that provides access to a point of sale. calling card or service that expires— wireless telecommunications service account (2) ONLINE SERVICES.—In the case of a pre- (A) before the date that is 1 year after the wherein the purchaser has a preexisting rela- paid telephone calling service that con- date on which such card or service is first tionship with the wireless service provider or sumers access and purchase via the Internet, used; or establishes a carrier-customer relationship the disclosures described in subsection (a) (B) in the case of a prepaid telephone call- via the purchase of a prepaid wireless tele- (other than paragraph (4) of such subsection) ing card or service that permits a consumer communications service handset package. shall be displayed in plain English in a clear to purchase additional usage minutes or add (7) PREPAID TELEPHONE CALLING SERVICE and conspicuous location on the Internet site additional value to the card or service, be- PROVIDER.—The term ‘‘prepaid telephone from which the consumer purchases such fore the date that is 1 year after the date on calling service provider’’ means any entity, service. which the consumer last purchased addi- corporation, company, association, firm, (3) ADVERTISING AND OTHER PROMOTIONAL tional usage minutes or added additional partnership, or person providing prepaid MATERIAL.—The disclosures described in sub- value to the card or service. telephone calling service to the public using section (a) (other than paragraph (3) of such (5) CHARGES FOR UNCONNECTED CALLS.—To its own, or a resold, telecommunications net- subsection) shall be printed on any adver- assess any fee or charge for any unconnected work or voice over Internet technology. tising for the prepaid telephone calling card telephone call. For purposes of this para- (8) WIRELESS TELECOMMUNICATIONS SERV- or service, including on any signs for display graph, a telephone call shall not be consid- ICE.—The term ‘‘wireless telecommuni- by retail merchants, any promotional ered connected if the person placing the call cations service’’ has the meaning given the emails, any Internet site used to promote receives a busy signal or if the call is unan- term ‘‘commercial mobile service’’ in section such card or service, and on any other pro- swered. 332(d) of the Communications Act of 1934 (47 motional material. (b) PREPAID TELEPHONE CALLING CARD DIS- U.S.C. 332(d)). (4) LANGUAGES OTHER THAN ENGLISH.—If a TRIBUTOR.—It shall be unlawful for any pre- language other than English is predomi- paid telephone calling card distributor to do SEC. 3. REQUIRED DISCLOSURES OF PREPAID nantly used on a prepaid telephone calling any of the following: TELEPHONE CALLING CARDS OR SERVICES. card or its packaging, or in the point-of-sale (1) UNDISCLOSED FEES AND CHARGES.—To as- advertising, Internet advertising, or pro- sess or deduct from the balance of a prepaid (a) RULEMAKING.—Not later than 180 days motional material of a prepaid telephone telephone calling card any fee or other after the date of the enactment of this Act, calling card or prepaid telephone calling amount for use of the prepaid telephone call- the Commission shall prescribe regulations service, than the disclosures required by the ing service, except— that require every prepaid telephone calling regulations prescribed under subsection (a) (A) the per minute rate or value for each service provider and prepaid telephone call- shall be disclosed in that language on such particular destination called by the con- ing card distributor to disclose, with respect card, packaging, advertisement, or pro- sumer; and to the terms and conditions of a prepaid tele- motional material in the same manner as if (B) fees that are disclosed as required by phone calling card or service provided, sold, English were used. regulations prescribed under section 3. resold, issued, or distributed by such service (c) ADDITIONAL REGULATIONS.—The Com- (2) MINUTES AS PROMOTED AND ADVER- provider or distributor, as the case may be, mission may, in accordance with section 553 TISED.—To sell, resell, issue, or distribute the following: of title 5, United States Code, prescribe such any prepaid telephone calling card that the (1)(A) The number of calling units or min- other regulations as the Commission deter- distributor knows provides fewer minutes utes of domestic interstate calls provided by mines are necessary to protect consumers of than the number of minutes promoted or ad- such card or service at the time of purchase; prepaid telephone calling cards and services. vertised, or a higher per minute rate to a or SEC. 4. UNLAWFUL CONDUCT RELATED TO PRE- specific destination than the per minute rate (B) the dollar value of such card or service PAID TELEPHONE CALLING CARDS. to that specific destination promoted or ad- and the domestic interstate rate per minute (a) PREPAID TELEPHONE CALLING SERVICE vertised, on— provided by such card or service at the time PROVIDER.—It shall be unlawful for any pre- (A) the prepaid telephone calling card; of purchase. paid telephone calling service provider to do (B) any point of sale material relating to (2) The applicable calling unit or per any of the following: the card; or minute rates for all international preferred (1) UNDISCLOSED FEES AND CHARGES.—To as- (C) other advertising relating to the card destinations served by such card or service. sess or deduct from the balance of a prepaid or service.

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(3) MINUTES ANNOUNCED, PROMOTED, OR AD- (ii) a copy of the complaint for the action. of a State is not inconsistent with this Act VERTISED THROUGH VOICE PROMPTS.—To sell, (B) EXEMPTION.— or a regulation prescribed under this Act if resell, issue, or distribute a prepaid tele- (i) IN GENERAL.—Subparagraph (A) shall such provision provides equal or greater pro- phone calling card that such distributor not apply to the filing of an action under tection to consumers than what is provided knows provides fewer minutes than the num- paragraph (1) if the attorney general of a under this Act or the regulations prescribed ber of minutes announced, promoted, or ad- State, a State utility commission, or an au- under this Act. vertised through any voice prompt given to a thorized State consumer protection agency consumer at the time the consumer places a filing such action determines that it is not By Mr. AKAKA (for himself and call to a dialed destination with the prepaid feasible to provide the notice described in Mr. INOUYE): telephone calling card or service. subparagraph (A) before the filing of the ac- S. 3000. A bill to amend title 38, (4) EXPIRATION.—Unless a different expira- tion. United States Code, to include Feder- tion date is clearly disclosed pursuant to the (ii) NOTIFICATION.—In an action described ally recognized tribal organizations in disclosure requirements of regulations pre- in clause (i), the attorney general of a State, certain grant programs of the Depart- scribed under section 3, to provide, sell, re- a State utility commission, or an authorized ment of Veterans Affairs for the sev- sell, issue, or distribute a prepaid telephone State consumer protection agency shall pro- eral States and territories, and for calling card that expires— vide notice and a copy of the complaint to (A) before the date that is 1 year after the the Commission at the time the action is other purposes; to the Committee on date on which such card or service is first filed. Veterans’ Affairs. used; or (b) INTERVENTION BY FEDERAL TRADE COM- Mr. AKAKA. Mr. President, today I (B) in the case of a prepaid telephone call- MISSION.— proudly introduce, along with my good ing card or service that permits a consumer (1) IN GENERAL.—Upon receiving notice friend and colleague, the senior Sen- to purchase additional usage minutes or add under subsection (a)(2), the Commission may ator from Hawaii, Senator DANIEL additional value to the card or service, be- intervene in the action that is the subject of INOUYE, the Native American Veterans fore the date that is 1 year after the date on such notice. Access Act. This measure would pro- which the consumer last purchased addi- (2) EFFECT OF INTERVENTION.—If the Com- vide equitable veterans’ services to Na- mission intervenes in an action under sub- tional usage minutes or added additional tive Americans by allowing tribal gov- value to the card or service. section (a), the Commission may— (c) LIABILITY.—A prepaid telephone calling (A) be heard with respect to any matter ernments to apply for veterans’ pro- service provider or a prepaid telephone call- that arises in that action; and gram grants currently limited to ing card distributor may not avoid liability (B) file a petition for appeal. States, and in some cases, even U.S. under this section by stating that the dis- (c) CONSTRUCTION.—Nothing in this Act Territories. played, announced, promoted, or advertised may be construed to prevent an attorney Native veterans have a long history minutes, or the per minute rate to a specific general of a State, a State utility commis- of honorable and extraordinary service destination, are subject to fees or charges, or sion, or an authorized State consumer pro- in our national defense. From the by utilizing other disclaimers or limitations. tection agency from exercising the powers American Indians who served alongside conferred on the attorney general, a State SEC. 5. ENFORCEMENT BY THE FEDERAL TRADE General George Washington, to Nainoa COMMISSION. utility commission, or an authorized State Hoe, a Native Hawaiian soldier who (a) UNFAIR AND DECEPTIVE ACT OR PRAC- consumer protection agency by the laws of TICE.—Notwithstanding any other provision that State— was killed on patrol in Iraq while car- of law, a violation of a regulation prescribed (1) to conduct investigations; rying the battle flag his father held in under section 3 or the commission of an un- (2) to administer oaths or affirmations; Vietnam, native veterans have served lawful act proscribed under section 4 shall be (3) to compel the attendance of witnesses bravely and honorably. treated as a violation of a rule defining an or the production of documentary and other Unfortunately, too often our Nation’s unfair or deceptive act or practice prescribed evidence; track record in serving native veterans under section 18(a)(1)(B) of the Federal Trade (4) to enforce any State consumer protec- does not match their service. Espe- Commission Act (15 U.S.C. 57a(a)(1)(B)). tion laws of general applicability; or cially in the case of native veterans (b) AUTHORITY OF THE COMMISSION.—The (5) to establish or utilize existing adminis- Commission shall enforce this Act in the trative procedures to enforce the provisions who return to their ancestral home- same manner and by the same means as of the law of such State. lands, reservation communities, or though all applicable terms and provisions of (d) VENUE; SERVICE OF PROCESS.— tribal villages, many native veterans the Federal Trade Commission Act were in- (1) VENUE.—Any action brought under sub- are geographically and culturally dis- corporated into and made a part of this Act. section (a) may be brought in the district connected from the services provided (c) RULEMAKING AUTHORITY.—The Commis- court of the United States that meets appli- by State and Federal veterans’ pro- sion may prescribe regulations to carry out cable requirements relating to venue under grams. this Act. section 1391 of title 28, United States Code. Part of the problem is that veterans’ SEC. 6. STATE ENFORCEMENT. (2) SERVICE OF PROCESS.—In an action programs are not always designed with (a) IN GENERAL.— brought under subsection (a), process may be served in any district in which the defend- native veterans in mind. For example, (1) CIVIL ACTIONS.—In any case in which the while the Department of Veterans Af- attorney general of a State, a State utility ant— commission, or other authorized State con- (A) is an inhabitant; or fairs and Department of Labor operate sumer protection agency has reason to be- (B) may be found. several exemplary veterans’ grant pro- lieve that an interest of the residents of that SEC. 7. APPLICATION. grams for State governments, most of State has been or is threatened or adversely The regulations prescribed under section 3 these programs are not open to tribal affected by the engagement of any person in and the provisions of section 4 shall apply to governments. The bill I am introducing a practice that is prohibited under this Act, any prepaid telephone calling card issued or today would address this issue, by giv- the State, as parens patriae, may bring a placed into the stream of commerce, and to ing tribal governments access to many civil action on behalf of the residents of that any advertisement, promotion, point-of-sale of these important programs. State in a district court of the United States material or voice prompt regarding a prepaid telephone calling service that is created or First, my bill would provide access to of appropriate jurisdiction, or any other VA’s two nursing home grants, which court of competent jurisdiction— disseminated 90 days after the date on which (A) to enjoin that practice; the regulations are prescribed under section help local governments construct vet- (B) to enforce compliance with this Act; 3(a). erans’ nursing homes and pay for nurs- (C) to obtain damage, restitution, or other SEC. 8. PREEMPTION. ing home care, adult day care, domi- compensation on behalf of residents of the Nothing in this Act shall affect the author- ciliary care, and hospital care. It is im- State; or ity of any State to establish or continue in portant that tribal governments be in- (D) to obtain such other relief as the court effect a provision of the law of a State relat- cluded in these grants, given the ex- may consider to be appropriate. ing to regulation of prepaid calling cards, pected rise in the number of older na- (2) NOTICE TO FEDERAL TRADE COMMISSION.— prepaid calling card distributors, prepaid tive veterans. The U.S. Census projects (A) IN GENERAL.—Before filing an action calling services, or prepaid calling service under paragraph (1), the attorney general of providers, except to the extent that such that while the overall number of older a State, a State utility commission, or an provision of law is inconsistent with the pro- veterans will decrease by 10 percent by authorized State consumer protection agen- visions of this Act or a regulation prescribed 2020, during that same period the num- cy shall provide to the Commission— under this Act, and then only to the extent ber of older native veterans will in- (i) written notice of the action; and of such inconsistency. A provision of the law crease by 60 percent. This expected

VerDate Mar 15 2010 10:41 Dec 08, 2010 Jkt 069102 PO 00000 Frm 00046 Fmt 0686 Sfmt 0634 E:\BR08\S08MY8.001 S08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD 8136 CONGRESSIONAL RECORD—SENATE, Vol. 154, Pt. 6 May 8, 2008 boom in older native veterans makes it (1) IN GENERAL.—Chapter 81 of such title is overcome the opposition of Representative important that we give tribal govern- further amended— John Sharp Williams of Mississippi, who op- ments the same opportunities we al- (A) in section 8131, by adding at the end the posed all women’s organizations; ready provide State governments to following new paragraph: Whereas, when Representative Williams ‘‘(5) The term ‘tribal organization’ has the was called out of the chamber by Mrs. Wil- care for their elder veterans. meaning given such term in section 3764(4) of liams, the good-mannered representative My bill would also give the Secretary this title.’’; obliged and withdrew his opposition and re- of Labor discretion to include tribal (B) in section 8132, by inserting ‘‘and tribal quest for a recorded vote, saying, ‘‘upon this governments in Veterans Employment organizations’’ after ‘‘the several States’’; particular bill there will not be a roll call, and Training programs and grants. and because it would cause a great deal of domes- Veterans’ employment services are (C) by inserting after section 8133 the fol- tic unhappiness in Washington if there much needed among native veterans, lowing new section: were’’; and in Indian Country. Census data in- ‘‘§ 8133A. Tribal organizations Whereas the first Congressional Clubhouse was at 1432 K Street Northwest in Wash- dicates that American Indian and Alas- ‘‘(a) The Secretary may make grants to ington, District of Columbia, and opened on tribal organizations under this subchapter in ka Native veterans are twice as likely December 11, 1908, with a reception for Presi- order to carry out the purposes of this sub- as other veterans to be unemployed. dent-elect and Mrs. William Taft; chapter. For those veterans living on-reserva- Whereas, after Mrs. John B. Henderson of ‘‘(b) Grants to tribal organizations under tion, the labor market is shamefully Missouri donated land on the corner of New this section shall be made in the same man- Hampshire Avenue and U Street Northwest, dismal: a recently published report ner, and under the same conditions, as the cornerstone of the current Clubhouse from the Bureau of Indian Affairs grants made to the several States under the was laid at that location on May 21, 1914; found on-reservation unemployment to provisions of this subchapter, subject to such Whereas that Clubhouse was built by be 49 percent. That unemployment rate exceptions as the Secretary shall prescribe George Totten in the Beaux Arts style and is for purposes of this subchapter to take into is twice as high as national unemploy- listed on the National Register of Historic account the unique circumstances of tribal ment was during the worst year of the Places; organizations.’’. Great Depression. Surely it is not too Whereas the mortgage on the Clubhouse (2) CLERICAL AMENDMENT.—The table of much to ask that tribal governments was paid for by the sales of the Club’s cook- sections at the beginning of chapter 81 of book and the mortgage document was burned in these circumstances be considered such title is amended by inserting after the by Mrs. Bess Truman in a silver bowl on the for the veterans’ employment programs item relating to section 8133 the following 40th anniversary of the Club’s founding; States and U.S. Territories already new item: have access to. Whereas the Congressional Club has re- ‘‘8133A. Tribal organizations.’’. mained a good neighbor on the U Street cor- I ask my colleagues to join me in (c) JOB COUNSELING, TRAINING AND PLACE- ridor for more than 90 years, encouraging the supporting these measures, as we work MENT SERVICES FOR VETERANS.—Section 4101 revitalization of the area during a time of so- towards parity in access and benefits of such title is amended— cioeconomic challenges and leading the way for Native American veterans. (1) in paragraph (6), by inserting ‘‘tribal or- in upkeep and maintenance of historic prop- Mr. President, I ask unanimous con- ganizations,’’ after ‘‘to the extent deter- erty; sent that the text of the bill be printed mined necessary and feasible,’’; and Whereas the Congressional Club honors in the the RECORD. (2) by adding at the end the following new and supports the people in its neighborhood There being no objection, the text of paragraph: by inviting the local police and fire depart- the bill was ordered to be placed in the ‘‘(9) The term ‘tribal organization’ has the ments to the Clubhouse for lunch and deliv- meaning given such term in section 3764(4) of ering trays of Member-made cookies and RECORD, as follows: this title.’’. candies to them during the holidays, by S. 3000 f hosting an annual Senior Citizens Apprecia- Be it enacted by the Senate and House of Rep- tion Day luncheon for residents of a neigh- resentatives of the United States of America in SUBMITTED RESOLUTIONS borhood nursing home, and by hosting an an- Congress assembled, nual holiday brunch for neighborhood chil- SECTION 1. SHORT TITLE. dren each December that includes a festive This Act may be cited as the ‘‘Native SENATE RESOLUTION 555—RECOG- meal, gifts, and a visit from Santa Claus; American Veterans Access Act of 2008’’. NIZING THE 100TH ANNIVERSARY Whereas the Congressional Club has hosted SEC. 2. INCLUSION OF FEDERALLY RECOGNIZED OF THE FOUNDING OF THE CON- the annual First Lady’s Luncheon every TRIBAL ORGANIZATIONS IN CER- GRESSIONAL CLUB. spring since 1912 and annually donates tens TAIN GRANT PROGRAMS OF THE DE- of thousands of dollars to charities in the PARTMENT OF VETERANS AFFAIRS Mr. ENZI (for himself, Mr. NELSON of name of the First Lady; FOR THE STATES AND TERRITORIES. Whereas, among its many charitable re- (a) TREATMENT OF TRIBAL ORGANIZATION Florida, Mr. WICKER, and Mr. NELSON cipients, the Congressional Club has chosen HEALTH FACILITIES AS STATE HOMES.—Sec- of Nebraska) submitted the following tion 8138 of title 38, United States Code, is resolution; which was referred to the mentoring programs, United National Indian amended— Committee on the Judiciary: Tribal Youth, literacy programs, the White House library, youth dance troupes, domes- (1) by redesignating subsection (e) as sub- S. RES. 555 section (f); and tic shelters, and child care centers; Whereas the Congressional Club was orga- (2) by inserting after subsection (d) the fol- Whereas the Congressional Club members, nized in 1908 by 25 women who were influen- lowing new subsection (e): upon the suggestion of Mrs. Eleanor Roo- ‘‘(e)(1) A health facility (or certain beds in tial in Washington’s official life and who sevelt, have been encouraged to become dis- a health facility) of a tribal organization is wanted to establish a nonsectarian and non- cussion leaders on national security in their treatable as a State home under subsection political group that would promote friend- home States, from the trials of World War II (a) in accordance with the provisions of that ship and cordiality in public life; to the threats of terrorism; subsection. Whereas those women founded the Club to Whereas the Congressional Club extends ‘‘(2) Except as provided in paragraph (3), bring the wives of Members of Congress to- the hand of friendship and goodwill globally the provisions of this section shall apply to gether in a hospitable and compatible envi- by hosting an annual diplomatic reception to a health facility (or certain beds in such fa- ronment in the Nation’s Capital; entertain the spouses of ambassadors to the cility) treated as a State home under sub- Whereas the Congressional Club was offi- United States; section (a) by reason of this subsection to cially established in 1908 by a unanimous Whereas the Congressional Club is solely the same extent as health facilities (or beds) vote in both the Senate and the House of supported by membership dues and the sale treated as a State home under subsection (a). Representatives and is the only club in the of cookbooks and has never received any ‘‘(3) Subsection (f) shall not apply to the world to be founded by an Act of Congress; Federal funding; treatment of health facilities (or certain Whereas the Act entitled ‘‘An Act to incor- Whereas the 14 editions of the Congres- beds in such facilities) of tribal organiza- porate the Congressional Club’’ (35 Stat. 476, sional Club cookbook, first published in 1928, tions as a State home under subsection (a). chapter 226) was signed by President Theo- reflect the life and times of the United ‘‘(4) In this subsection, the term ‘tribal or- dore Roosevelt on May 30, 1908; States with recipes and signatures of Mem- ganization’ has the meaning given such term Whereas the Congressional Club’s founding bers of Congress, First Ladies, Ambassadors, in section 3764(4) of this title.’’. was secured by womanly wiles and feminine and members of the Club; (b) STATE HOME FACILITIES FOR DOMI- determination in the enactment of that Act Whereas the Congressional Club member- CILIARY, NURSING, AND OTHER CARE.— unanimously on May 28, 1908, in order to ship has expanded to include spouses and

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daughters of Representatives, Senators, Su- S. RES. 556 long celebration in communities throughout preme Court Justices, and Cabinet members; Whereas charter schools deliver high-qual- the United States. Whereas 7 members of the Congressional ity education and challenge all students to f Club have become First Lady: Mrs. Florence reach their potential; Harding, Mrs. Lou Hoover, Mrs. Bess Tru- Whereas charter schools provide thousands SENATE RESOLUTION 557—SUP- man, Mrs. Jacqueline Kennedy, Mrs. Patricia of families with diverse and innovative edu- PORTING THE GOALS AND Nixon, Mrs. Betty Ford, and Mrs. Barbara cational options for their children; IDEALS OF NATIONAL TRAIN Bush; Whereas charter schools are public schools Whereas several members of the Congres- authorized by a designated public entity that DAY sional Club have been elected to Congress, are responding to the needs of our commu- Mr. LAUTENBERG (for himself, Mrs. including Mrs. Jo Ann Emerson, Mrs. Lois nities, families, and students and promoting HUTCHISON, Mr. BAUCUS, Mr. BIDEN, Mr. Capps, and Mrs. Mary Bono, and former the principles of quality, choice, and innova- CARPER, Mrs. CLINTON, Mr. DORGAN, presidents of the Congressional Club Mrs. tion; Mr. DURBIN, Mr. KERRY, Mr. MENENDEZ, Lindy Boggs and Mrs. Doris Matsui; Whereas, in exchange for the flexibility Whereas leading figures in politics, the and autonomy given to charter schools, they Mr. SCHUMER, Mr. WHITEHOUSE, Mr. arts, and the media have visited the Club- are held accountable by their sponsors for WYDEN, Mr. DOMENICI, Ms. SNOWE, Mr. house throughout the past 100 years; improving student achievement and for their CRAPO, Mr. COCHRAN, Mr. SPECTER, Mr. Whereas the Congressional Club is home to financial and other operations; LIEBERMAN, Mr. BAYH, and Mr. BROWN) the First Lady’s gown display, a museum Whereas 40 States and the District of Co- submitted the following resolution; with replica inaugural and ball gowns of the lumbia have passed laws authorizing charter which was referred to the Committee First Ladies from Mrs. Mary Todd Lincoln to schools; on Commerce, Science, and Transpor- Mrs. Laura Bush; Whereas more than 4,300 charter schools tation: Whereas the Congressional Club is charged are now operating in 40 States and the Dis- with receiving the Presidential couple, hon- trict of Columbia, serving more than 1,200,000 S. RES. 557 oring the Vice President and spouse, the students; Whereas, on May 10, 1869, the ‘‘golden Speaker of the House of Representatives and Whereas, over the last 14 years, Congress spike’’ was driven into the final tie at Prom- spouse, and the Chief Justice and spouse, and has provided over $2,237,256,000 in support to ontory Summit, Utah, to join the Central providing the orientation for spouses of new the charter school movement through facili- Pacific and the Union Pacific Railroads, Members of Congress; and ties financing assistance and grants for plan- ceremonially completing the first trans- Whereas the Congressional Club will cele- ning, startup, implementation, and dissemi- continental railroad and therefore con- brate its 100th anniversary with festivities nation; necting both coasts of the United States; and ceremonies during 2008 that include the Whereas many charter schools improve Whereas, in highly populated regions, Am- ringing of the official bells of the United their students’ achievement and stimulate trak trains and infrastructure carry com- States Congress, a Founder’s Day program, a improvement in traditional public schools; muters to and from work in congested met- birthday cake at the First Lady’s Luncheon, Whereas charter schools must meet the ropolitan areas providing a reliable rail op- an anniversary postage stamp and cancella- student achievement accountability require- tion, reducing congestion on roads and in the tion stamp, a 100-year pin and pendant de- ments under the Elementary and Secondary skies; signed by former president Lois Breaux, and Education Act of 1965 in the same manner as Whereas, for many rural Americans, Am- invitations to President and Mrs. Bush, traditional public schools, and often set trak represents the only major intercity Speaker and Mr. Pelosi, and Chief Justice higher and additional individual goals to en- transportation link to the rest of the coun- and Mrs. Roberts to visit and celebrate 100 sure that they are of high quality and truly try; years of public service, civility, and growth accountable to the public; Whereas passenger rail provides a more en- at the Congressional Club: Now, therefore, be Whereas charter schools give parents new ergy-efficient form of transportation com- it freedom to choose their public schools, rou- pared to autos or air travel; Resolved, That the Senate— tinely measure parental satisfaction levels, Whereas passenger railroads emit only 0.2 (1) recognizes the 100th anniversary of the and must prove their ongoing success to par- percent of the travel industry’s total green- founding of the Congressional Club; ents, policymakers, and their communities; house gases; (2) acknowledges the contributions of po- Whereas over 50 percent of charter schools Whereas Amtrak annually provides inter- litical spouses to public life in the United report having a waiting list, and the total city passenger rail travel to over 25,000,000 States and around the world through the number of students on all such waiting lists Americans residing in 46 States; Congressional Club for the past 100 years; is enough to fill over 1,100 average-sized Whereas an increasing number of people (3) honors the past and present member- charter schools; are using trains for travel purposes beyond ship of the Congressional Club; and Whereas charter schools nationwide serve commuting to and from work; (4) encourages the people of the United a higher percentage of low-income and mi- Whereas our railroad stations are a source States— nority students than the traditional public of civic pride, a gateway to our communities, (A) to strive for greater friendship, civil- school system; and a tool for economic growth; and ity, and generosity in order to heighten pub- Whereas charter schools have enjoyed Whereas Amtrak has designated May 10, lic service, elevate the culture, and enrich broad bipartisan support from the President, 2008, as National Train Day to celebrate the humanity; and Congress, State Governors and legislatures, way trains connect people and places: Now, (B) to seek opportunities to give finan- educators, and parents across the United therefore, be it cially and to volunteer to assist charitable States; and Resolved, That the Senate supports the organizations in their own communities. Whereas the 9th annual National Charter goals and ideals of National Train Day, as Schools Week, to be held May 5 through May designated by Amtrak. 9, 2008, is an event sponsored by charter f f schools and grassroots charter school organi- zations across the United States to recognize SENATE RESOLUTION 556—CON- AMENDMENTS SUBMITTED AND the significant impacts, achievements, and PROPOSED GRATULATING CHARTER innovations of charter schools: Now, there- SCHOOLS AND THEIR STUDENTS, fore, be it SA 4733. Mr. MENENDEZ (for himself, Mr. PARENTS, TEACHERS, AND AD- Resolved, That the Senate— LAUTENBERG, Mr. SCHUMER, Mr. NELSON of MINISTRATORS ACROSS THE (1) acknowledges and commends charter Florida, and Mrs. CLINTON) submitted an UNITED STATES FOR THEIR ON- schools and their students, parents, teachers, amendment intended to be proposed to GOING CONTRIBUTIONS TO EDU- and administrators across the United States amendment SA 4707 proposed by Mr. DODD for their ongoing contributions to education, (for himself and Mr. SHELBY) to the bill S. CATION, AND FOR OTHER PUR- especially their impressive results closing 2284, to amend the National Flood Insurance POSES. America’s persistent achievement gap, and Act of 1968, to restore the financial solvency Ms. LANDRIEU (for herself, Mr. AL- improving and strengthening our public of the flood insurance fund, and for other EXANDER, Mr. LIEBERMAN, Mr. BURR, school system. purposes. (2) supports the ideas and goals of the 9th SA 4734. Mr. ENSIGN (for himself and Mr. Mr. VITTER, Mr. GREGG, Mr. SUNUNU, annual National Charter Schools Week; and REID) proposed an amendment to amendment LLARD SAKSON AR Mr. A , Mr. I , and Mr. C - (3) encourages the people of the United SA 4707 proposed by Mr. DODD (for himself PER) submitted the following resolu- States to conduct appropriate programs, and Mr. SHELBY) to the bill S. 2284, supra. tion; which was considered and agreed ceremonies, and activities to demonstrate SA 4735. Mr. THUNE (for himself and Mr. to: support for charter schools during this week JOHNSON) submitted an amendment intended

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to be proposed to amendment SA 4707 pro- On page 34, between lines 14 and 15, insert (2) SOURCE OF FUNDS.—The Director shall posed by Mr. DODD (for himself and Mr. the following: compensate each injured party for damages SHELBY) to the bill S. 2284, supra. (d) COMMUNICATION AND OUTREACH.— resulting from the Fernley flood from the SA 4736. Mr. DODD (for himself and Mr. (1) IN GENERAL.—The Director shall— permanent judgment appropriation under SHELBY) submitted an amendment intended (A) work to enhance communication and section 1304 of title 31, United States Code. to be proposed to amendment SA 4707 pro- outreach to States, local communities, and (c) INSURANCE AND OTHER BENEFITS.—The posed by Mr. DODD (for himself and Mr. property owners about the effects of— Director shall reduce the amount to be paid SHELBY) to the bill S. 2284, supra. (i) any potential changes to National Flood to an injured party relating to the Fernley SA 4737. Mr. REID (for himself, Mr. DOR- Insurance Program rate maps that may re- flood by an amount that is equal to the total GAN, Mr. BINGAMAN, Mrs. BOXER, Mr. LEVIN, sult from the mapping program required of insurance benefits (excluding life insur- Ms. STABENOW, Mr. LEAHY, Mr. SCHUMER, Mr. under this section; and ance benefits) or other payments or settle- BROWN, Mr. SANDERS, Mr. DURBIN, Mr. (ii) that any such changes may have on ments of any nature relating to the Fernley KERRY, Mr. MENENDEZ, Ms. LANDRIEU, Mr. flood insurance purchase requirements; and flood that were paid, or will be paid, to that CARPER, Mr. INOUYE, Mr. LAUTENBERG, Mr. (B) engage with local communities to en- injured party. SALAZAR, Mr. REED, and Mr. HARKIN) sub- hance communication and outreach to the (d) ACCEPTANCE OF AWARD.—The accept- mitted an amendment intended to be pro- residents of such communities on the mat- ance by a injured party of any payment posed by him to the bill S. 2284, supra; which ters described under subparagraph (A). under this section shall (excluding claims re- was ordered to lie on the table. (2) REQUIRED ACTIVITIES.—The communica- lating to life insurance benefits)— SA 4738. Ms. STABENOW (for herself and tion and outreach activities required under (1) be final and conclusive as to any claim Mr. LEVIN) submitted an amendment in- paragraph (1) shall include— of that injured party relating to damages tended to be proposed to amendment SA 4707 (A) notifying property owners when their suffered because of the Fernley flood; and proposed by Mr. DODD (for himself and Mr. properties become included in, or when they (2) constitute a complete and full release of SHELBY) to the bill S. 2284, supra; which was are excluded from, an area having special all claims of that injured party relating to ordered to lie on the table. flood hazards and the effect of such inclusion the Fernley flood against the United States, SA 4739. Mr. BAUCUS submitted an amend- or exclusion on the applicability of the man- the State of Nevada, Lyon County, Nevada, ment intended to be proposed by him to the datory flood insurance purchase requirement the City of Fernley, Nevada, and the Truck- bill S. 2284, supra; which was ordered to lie under section 102 of the Flood Disaster Pro- ee-Carson Irrigation District. (e) REGULATIONS.—Not later than 90 days on the table. tection Act of 1973 (42 U.S.C. 4012a) to such after the date of enactment of this Act, the SA 4740. Mr. BAUCUS submitted an amend- properties; Director shall promulgate and publish in the ment intended to be proposed by him to the (B) educating property owners regarding Federal Register interim final regulations to bill S. 2284, supra; which was ordered to lie the flood risk and reduction of this risk in carry out this section. on the table. their community, including the continued SA 4741. Mr. BAUCUS submitted an amend- flood risks to areas that are no longer sub- SA 4735. Mr. THUNE (for himself and ment intended to be proposed by him to the ject to the flood insurance mandatory pur- Mr. JOHNSON) submitted an amendment bill S. 2284, supra; which was ordered to lie chase requirement; on the table. (C) educating property owners regarding intended to be proposed to amendment SA 4742. Mr. BAUCUS submitted an amend- the benefits and costs of maintaining or ac- SA 4707 proposed by Mr. DODD (for him- ment intended to be proposed by him to the quiring flood insurance, including, where ap- self and Mr. SHELBY) to the bill S. 2284, bill S. 2284, supra; which was ordered to lie plicable, lower-cost preferred risk policies to amend the National Flood Insurance on the table. under the National Flood Insurance Act of Act of 1968, to restore the financial sol- SA 4743. Mr. BAUCUS submitted an amend- 1968 (42 U.S.C. 4011 et seq.) for such prop- vency of the flood insurance fund, and ment intended to be proposed by him to the erties and the contents of such properties; for other purposes; as follows: (D) educating property owners about flood bill S. 2284, supra; which was ordered to lie At the end, add the following: on the table. map revisions and the process available such SA 4744. Mr. BAUCUS submitted an amend- owners to appeal proposed changes in flood TITLE III—MISCELLANEOUS ment intended to be proposed by him to the elevations through their community; and SEC. 301. BIG SIOUX RIVER AND SKUNK CREEK, bill S. 2284, supra; which was ordered to lie (E) encouraging property owners to main- SIOUX FALLS, SOUTH DAKOTA. on the table. tain or acquire flood insurance coverage. The project for flood control, Big Sioux SA 4745. Mr. BAUCUS submitted an amend- On page 34, line 15, strike ‘‘(d)’’ and insert River and Skunk Creek, Sioux Falls, South ment intended to be proposed by him to the ‘‘(e)’’. Dakota, authorized by section 101(a)(28) of bill S. 2284, supra; which was ordered to lie the Water Resources Development Act of 1996 (110 Stat. 3666), is modified to authorize on the table. SA 4734. Mr. ENSIGN (for himself the Secretary to reimburse the non-Federal SA 4746. Mr. BAUCUS submitted an amend- and Mr. REID) proposed an amendment interest for funds advanced by the non-Fed- ment intended to be proposed by him to the to amendment SA 4707 proposed by Mr. eral interest for the Federal share of the bill S. 2284, supra; which was ordered to lie DODD (for himself and Mr. SHELBY) to project, only if additional Federal funds are on the table. the bill S. 2284, to amend the National appropriated for that purpose. SA 4747. Mr. BAUCUS submitted an amend- Flood Insurance Act of 1968, to restore ment intended to be proposed by him to the the financial solvency of the flood in- SA 4736. Mr. DODD (for himself and bill S. 2284, supra; which was ordered to lie Mr. SHELBY) submitted an amendment on the table. surance fund, and for other purposes; SA 4748. Mr. BAUCUS submitted an amend- as follows: intended to be proposed to amendment ment intended to be proposed by him to the At the appropriate place, insert the fol- SA 4707 proposed by Mr. DODD (for him- bill S. 2284, supra; which was ordered to lie lowing: self and Mr. SHELBY) to the bill S. 2284, on the table. SEC. ll. FERNLEY FLOOD COMPENSATION. to amend the National Flood Insurance SA 4749. Mr. BAUCUS submitted an amend- (a) DEFINITIONS.—In this section: Act of 1968, to restore the financial sol- ment intended to be proposed by him to the (1) COVERED PERSON.—The term ‘‘covered vency of the flood insurance fund, and bill S. 2284, supra; which was ordered to lie person’’ means a United States citizen, an for other purposes; as follows: on the table. alien lawfully admitted for permanent resi- On page 10, between lines 16 and 17, insert dence, the City of Fernley, Lyon County, a f the following: person that is not an individual, or a school (3) ACCURATE PRICING.—In carrying out the TEXT OF AMENDMENTS district. mandatory purchase requirement under (2) FERNLEY FLOOD.—The term ‘‘Fernley SA 4733. Mr. MENENDEZ (for him- paragraph (1), the Director shall ensure that flood’’ means the breach of the Truckee Irri- the price of flood insurance policies in areas self, Mr. LAUTENBERG, Mr. SCHUMER, gation Canal on January 5, 2008, and subse- of residual risk accurately reflects the level Mr. NELSON of Florida, and Mrs. CLIN- quent flooding of the City of Fernley, Ne- of flood protection provided by any levee, TON) submitted an amendment in- vada. dam, or other the man-made structure in tended to be proposed to amendment (3) INJURED PARTY.—The term ‘‘injured such area. SA 4707 proposed by Mr. DODD (for him- party’’ means a covered person that suffered On page 31, after line 14 add: damages resulting from the Fernley flood. self and Mr. SHELBY) to the bill S. 2284, ‘‘(v) The level of protection provided by (b) COMPENSATION AND SOURCE OF FUNDS.— to amend the National Flood Insurance man-made structures.’’ (1) COMPENSATION.—Each injured party On page 10, after line 16, insert: Act of 1968, to restore the financial sol- shall be eligible to receive from the United (d)—upon decertification of any levee, vency of the flood insurance fund, and States compensation for damages suffered as dam, or man-made structure under the juris- for other purposes; as follows: a result of the Fernley flood. diction of the Army Corps of Engineers, the

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Mr. REID (for himself, Mr. provide flood protection. to restore the financial solvency of the DORGAN, Mr. BINGAMAN, Mrs. BOXER, (2) NO COST TO CITY.—The study required flood insuance fund, and for other pur- Mr. LEVIN, Ms. STABENOW, Mr. LEAHY, under paragraph (1) shall be conducted at no poses; which was ordered to lie on the Mr. SCHUMER, Mr. BROWN, Mr. SAND- cost to the City of Grand Rapids. (3) TERMS OF ANALYSIS.—In making the de- table; as follows: ERS, Mr. DURBIN, Mr. KERRY, Mr. termination required under paragraph (1), MENENDEZ, Ms. LANDRIEU, Mr. CARPER, At the appropriate place, insert the fol- the Director and the Corps of Engineers lowing: Mr. INOUYE, Mr. LAUTENBERG, Mr. shall— SEC. ll. AIRLINE MERGERS. SALAZAR, Mr. REED, and Mr. HARKIN) (A) use the best and most appropriate geo- In reviewing the proposed merger of North- submitted an amendment intended to logic, hydrologic, climate data, and flood west Airlines and Delta Air Lines announced modeling available; be proposed by him to the bill S. 2284, April 14, 2008, the Assistant Attorney Gen- (B) fully analyze and identify— to amend the National Flood Insurance eral in charge of the Antitrust Division of (i) the overall risk of failure of the Grand Act of 1968, to restore the financial sol- the Department of Justice shall consider River Floodwall to the City of Grand Rapids; vency of the flood insurance fund, and whether Northwest Airlines or Delta Air (ii) the existing flood protection measures Lines would be able to continue business op- for other purposes; which was ordered provided by such Floodwall; and erations if such proposed merger does not to lie on the table; as follows: (iii) the risk remaining to the City of occur. At the appropriate place, insert the fol- Grand Rapids after consideration of the ex- lowing: isting flood protection measures provided by SA 4742. Mr. BAUCUS submitted an SEC. ll. SUSPENSION OF PETROLEUM ACQUISI- such Floodwall; and TION FOR STRATEGIC PETROLEUM (C) assign a realistic cost to taking meas- amendment intended to be proposed by RESERVE. ures to insure against the remaining risk him to the bill S. 2284, to amend the (a) IN GENERAL.—Except as provided in identified under subparagraph (B). National Flood Insurance Act of 1968, subsection (b) and notwithstanding any (4) NO UPDATE OF FLOODMAPS UNTIL STUDY to restore the financial solvency of the other provision of law, during the period be- COMPLETED.—During the period beginning on flood insuance fund, and for other pur- ginning on the date of enactment of this Act the date of the enactment of this Act and poses; which was ordered to lie on the and ending on December 31, 2008— ending on the date on which the study re- table; as follows: (1) the Secretary of the Interior shall sus- quired under paragraph (1) is completed, the pend acquisition of petroleum for the Stra- Director may not issue any updated flood in- At the end of title VII, insert the fol- tegic Petroleum Reserve through the roy- surance rate maps for the City of Grand Rap- lowing: alty-in-kind program; and ids. SEC. ll. STUDY OF THE IMPACT THAT AIRLINE (2) the Secretary of Energy shall suspend MERGERS HAVE HAD ON RURAL acquisition of petroleum for the Strategic SA 4739. Mr. BAUCUS submitted an AREAS. Petroleum Reserve through any other acqui- amendment intended to be proposed by (a) IN GENERAL.—The Attorney General sition method. him to the bill S. 2284, to amend the shall conduct a study on the impact that air- (b) RESUMPTION.—Not earlier than 30 days National Flood Insurance Act of 1968; line mergers have had on rural areas since after the date on which the President noti- deregulation of the airline industry in 1978. to restore the financial solvency of the fies Congress that the President has deter- (b) REPORT.—Not later than 90 days after mined that the weighted average price of pe- flood insurance fund, and for other pur- the date of enactment of this Act, the Attor- troleum in the United States for the most re- poses; which was ordered to lie on the ney General shall submit the findings from cent 90-day period is $75 or less per barrel— table; as follows: the study required by subsection (a) to Con- (1) the Secretary of the Interior may re- At the appropriate place, insert the fol- gress. sume acquisition of petroleum for the Stra- lowing: (c) DEFINITION.—In this section, the term tegic Petroleum Reserve through the roy- SEC. ll. AIRLINE MERGERS. ‘‘rural areas’’ means areas having fewer than alty-in-kind program; and In reviewing the proposed merger of North- 50,000 residents. (2) the Secretary of Energy may resume ac- west Airlines and Delta Air Lines announced quisition of petroleum for the Strategic Pe- April 14, 2008, the Assistant Attorney Gen- SA 4743. Mr. BAUCUS submitted an troleum Reserve through any other acquisi- eral in charge of the Antitrust Division of amendment intended to be proposed by tion method. the Department of Justice shall consider any him to the bill S. 2284, to amend the (c) EXISTING CONTRACTS.—In the case of potential adverse effects on competition in National Flood Insurance Act of 1968, any oil scheduled to be delivered to the Stra- urban and rural areas with fewer than 200,000 tegic Petroleum Reserve pursuant to a con- residents. to restore the financial solvency of the tract entered into by the Secretary of En- flood insuance fund, and for other pur- ergy prior to, and in effect on, the date of en- SA 4740. Mr. BAUCUS submitted an poses; which was ordered to lie on the actment of this Act, the Secretary shall, to amendment intended to be proposed by table; as follows: the maximum extent practicable, negotiate him to the bill S. 2284, to amend the At the appropriate place, insert the fol- a deferral of the delivery of the oil for a pe- National Flood Insurance Act of 1968, lowing: riod of not less than 1 year, in accordance to restore the financial solvency of the SEC. ll. AIRLINE MERGERS. with procedures of the Department of Energy flood insurance fund, and for other pur- The Comptroller General of the United in effect on the date of enactment of this Act poses; which was ordered to lie on the States shall conduct a study of, and submit for deferrals of oil. table; as follows: a report to Congress regarding, the effect of the proposed merger of Northwest Airlines SA 4738. Ms. STABENOW (for himself At the appropriate place, insert the fol- lowing: and Delta Air Lines announced April 14, 2008, and Mr. LEVIN) submitted an amend- on— ment intended to be proposed to SEC. lll. STUDY ON EXISTING CODE-SHARING AGREEMENTS AND PROPOSED (1) the compensation of executives of such amendment SA 4707 proposed by Mr. MERGER BETWEEN DELTA AIR companies; and DODD (for himself and Mr. SHELBY) to LINES AND NORTHWEST AIRLINES. (2) the liabilities of the employee pension the bill S. 2284, to amend the National The Secretary of Transportation shall con- benefit plans of such companies relating to Flood Insurance Act of 1968, to restore duct a study on the proposed merger between employees that are not executive-level em- the financial solvency of the flood in- Delta Air Lines and Northwest Airlines to ployees. assess whether, because of existing code- surance fund, and for other purposes; sharing agreements between Northwest Air- SA 4744. Mr. BAUCUS submitted an which was ordered to lie on the table; lines, Air France, and KLM Royal Dutch Air- amendment intended to be proposed by as follows: lines— him to the bill S. 2284, to amend the On page 72, after line 19, insert the fol- (1) such merger would provide greater ac- National Flood Insurance Act of 1968, lowing: cess to United States air transportation (e) STUDY ON GRAND RIVER FLOODWALL.— markets by Air France and KLM Royal to restore the financial solvency of the (1) IN GENERAL.—The Director and the Dutch Airlines; and flood insurance fund, and for other pur- Corps of Engineers, in conjunction with the (2) such increased access would be in the poses; which was ordered to lie on the City of Grand Rapids, shall conduct a study United States public interest. table; as follows:

VerDate Mar 15 2010 10:41 Dec 08, 2010 Jkt 069102 PO 00000 Frm 00050 Fmt 0686 Sfmt 0634 E:\BR08\S08MY8.001 S08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD 8140 CONGRESSIONAL RECORD—SENATE, Vol. 154, Pt. 6 May 8, 2008 At the appropriate place, insert the fol- (2) to determine whether permitting such room SD–366 of the Dirksen Senate Of- lowing: merger would violate any trade agreement fice Building. SEC. ll. AIRLINE MERGERS. with respect to which the United States is a The purpose of the hearing is to re- (a) IN GENERAL.—For any covered airline party. ceive testimony regarding off-highway merger, the waiting period described in sec- vehicle management on public lands. tion 7A(b)(1) of the Clayton Act (15 U.S.C. SA 4747. Mr. BAUCUS submitted an 18a(b)(1)) for that covered airline merger amendment intended to be proposed by Because of the limited time available shall expire on the latter of— him to the bill S. 2284, to amend the for the hearing, witnesses may testify (1) the date that is 1 year after the date of National Flood Insurance Act of 1968, by invitation only. However, those enactment of this Act; or to restore the financial solvency of the wishing to submit written testimony (2) the date that such waiting period other- for the hearing record should send it to wise expires under section 7A(b)(1) of the flood insurance fund, and for other pur- poses; which was ordered to lie on the the Committee on Energy and Natural Clayton Act (15 U.S.C. 18a(b)(1)) (including Resources, United States Senate, such later date as may be set under sub- table; as follows: Washington, DC 20510–6150, or by e-mail section (e)(2) or (g)(2) of such section). At the end of title VII, insert the fol- _ (b) DEFINITION OF COVERED AIRLINE MERG- lowing: to rachel [email protected] .gov. ER.—In this section, the term ‘‘covered air- SEC. ll. STUDY OF THE IMPACT THAT AIRLINE line merger’’ means any acquisition of vot- MERGERS HAVE HAD ON RURAL For further information, please con- ing securities or assets of a person in the air AREAS. tact Rachel Pasternack at (202) 224–0883 transport services industry— (a) IN GENERAL.—The Attorney General or Scott Miller at 202–224–5488. (1) relating to which— shall conduct a study on the impact that air- COMMITTEE ON INDIAN AFFAIRS (A) a notice is filed pursuant to the rules line mergers have had on rural areas since under section 7A(d)(1) of the Clayton Act (15 deregulation of the airline industry in 1978. Mr. DORGAN. Mr. President, I would U.S.C. 18a(d)(1)) during the 1-year period be- (b) REPORT.—Not later than 90 days after like to announce that the Committee ginning on the date of enactment of this Act; the date of enactment of this Act, the Attor- onIndian Affairs will meet on Tuesday, or ney General shall submit the findings from May 13, at 2:30 p.m. in room 562 of the (B) the waiting period described in section the study required by subsection (a) to Con- Dirksen Senate Office Building to con- 7A(b)(1) of the Clayton Act (15 U.S.C. gress. duct an oversight hearing on ‘‘the suc- 18a(b)(1)) has not expired on the date of en- (c) DEFINITION.—In this section, the term cesses and shortfalls of Title IV of the actment of this Act; and ‘‘rural areas’’ means areas having fewer than Indian Self-Determination and Edu- (2) that the Assistant Attorney General in 50,000 residents. charge of the Antitrust Division of the De- cation Assistance Act: Twenty Years of partment of Justice determines is likely to SA 4748. Mr. BAUCUS submitted an Self-Governance’’. result in layoffs in, or reductions in air amendment intended to be proposed by Those wishing additional information transport services to, rural areas. him to the bill S. 2284, to amend the may contact the Indian AffairsCommittee at 224–2251. SA 4745. Mr. BAUCUS submitted an National Flood Insurance Act of 1968, to restore the financial solvency of the amendment intended to be proposed by f him to the bill S. 2284, to amend the flood insurance fund, and for other pur- poses; which was ordered to lie on the National Flood Insurance Act of 1968, AUTHORITY FOR COMMITTEES TO table; as follows: to restore the financial solvency of the MEET flood insurance fund, and for other pur- At the end of title VII, insert the fol- poses; which was ordered to lie on the lowing: COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION table; as follows: SEC. ll. ACTION BY STATE ATTORNEYS GEN- ERAL AGAINST DELTA AND NORTH- Mr. DODD. Mr. President, I ask unan- At the end of title VII, insert the fol- WEST MERGER. lowing: imous consent that the Committee on Congress encourages the Attorney General Commerce, Science, and Transpor- SEC. ll. STUDY OF THE IMPACT THAT AIRLINE of any State adversely impacted by the pro- MERGERS HAVE HAD ON NEW COM- tation be authorized to meet during posed Delta and Northwest merger to bring MERCIAL AIRLINE ENTRIES INTO the session of the Senate on Thursday, RURAL MARKETS. an action under the Clayton Act to enjoin the merger or recover any appropriate dam- May 8, 2008, at 2:30 p.m., in room 253 of (a) IN GENERAL.—The Attorney General the Russell Senate Office Building. shall conduct a study on the impact that air- ages. line mergers have had on new commercial The PRESIDING OFFICER. Without airline entries into rural markets. SA 4749. Mr. BAUCUS submitted an objection, it is so ordered. (b) REPORT.—Not later than 90 days after amendment intended to be proposed by COMMITTEE ON ENVIRONMENT AND PUBLIC the date of enactment of this Act, the Attor- him to the bill S. 2284, to amend the WORKS ney General shall submit the findings from National Flood Insurance Act of 1968, Mr. DODD. Mr. President, I ask unan- the study required by subsection (a) to Con- to restore the financial solvency of the imous consent that the Committee on gress. flood insurance fund, and for other pur- Environment and Public Works be au- SA 4746. Mr. BAUCUS submitted an poses; which was ordered to lie on the thorized to meet during the session of amendment intended to be proposed by table; as follows: the Senate on Thursday, May 8, 2008 at him to the bill S. 2284, to amend the At the appropriate place, insert the fol- 10 a.m. in room 406 of the Dirksen Sen- National Flood Insurance Act of 1968, lowing: ate Office Building to hold a hearing to restore the financial solvency of the SEC. ll. AIRLINE MERGERS. entitled, ‘‘Goods Movement on our Na- flood insurance fund, and for other pur- The Comptroller General of the United tion’s Highways.’’ poses; which was ordered to lie on the States shall conduct a study of, and submit The PRESIDING OFFICER. Without table; as follows: a report regarding, whether the proposed objection, it is so ordered. merger of Northwest Airlines and Delta Air At the appropriate place, insert the fol- Lines announced April 14, 2008, will harm air COMMITTEE ON FINANCE lowing: transport services in rural areas. Mr. DODD. Mr. President, I ask unan- SEC. lll. STUDY ON IMPACT OF PROPOSED f imous consent that the Committee on MERGER BETWEEN DELTA AIR Finance be authorized to meet during LINES AND NORTHWEST AIRLINES NOTICES OF HEARINGS ON AIR TRANSPORTATION MARKET the session of the Senate on Thursday, IN EUROPE. COMMITTEE ON ENERGY AND NATURAL May 8, 2008, at 10 a.m., in 215 Dirksen The Secretary of Transportation shall con- RESOURCES Senate Office Building, to conduct a duct a study on the proposed merger between Mr. BINGAMAN. Mr. President, I hearing entitled ‘‘More Work, Less Re- Delta Air Lines and Northwest Airlines— would like to announce for the infor- sources: Social Security Field Offices (1) to estimate, if such merger were com- pleted, what share of the air transportation mation of the Senate and the public Struggle to Deliver Service to the Pub- market in Europe such merged entity would that an oversight hearing has been lic’’. have, taking into consideration the Open scheduled. The hearing will be held on The PRESIDING OFFICER. Without Skies Initiative; and Thursday, June 5, 2008, at 9:30 a.m., in objection, it is so ordered.

VerDate Mar 15 2010 10:41 Dec 08, 2010 Jkt 069102 PO 00000 Frm 00051 Fmt 0686 Sfmt 0634 E:\BR08\S08MY8.001 S08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD May 8, 2008 CONGRESSIONAL RECORD—SENATE, Vol. 154, Pt. 6 8141 COMMITTEE ON HEALTH, EDUCATION, LABOR, COMMEMORATING THE DEDICA- State capitals, and in the Nation’s Cap- AND PENSIONS TION AND SACRIFICE OF LAW ital, with the opportunity to honor and Mr. DODD. Mr. President, I ask unan- ENFORCEMENT OFFICERS reflect on the extraordinary service imous consent that the Committee on Ms. KLOBUCHAR. Mr. President, I and sacrifice given year after year by Health, Education, Labor, and Pen- ask unanimous consent that the Sen- those members of our police forces. sions be authorized to meet, during the ate proceed to the immediate consider- More than 20,000 peace officers are ex- session of the Senate, to conduct a ation of Calendar No. 729, S. Res. 537. hearing entitled ‘‘Cancer: Challenges pected to gather in Washington in the The PRESIDING OFFICER. The days leading up to May 15, to join with and Opportunities in the 21st Century’’ clerk will report. the families of their fallen comrades. It on Thursday, May 8, 2008. The hearing The assistant legislative clerk read will commence at 9 a.m. in room 216 of as follows: is right that the Senate show its re- the Hart Senate Office Building. A resolution (S. Res. 537) commemorating spect on this occasion, and I thank all The PRESIDING OFFICER. Without and acknowledging the dedication and sac- Senators for joining me in honoring objection, it is so ordered. rifice made by the men and women who have their service and their memory by ap- COMMITTEE ON HOMELAND SECURITY AND lost their lives while serving as law enforce- proving this bipartisan resolution. GOVERNMENTAL AFFAIRS ment officers. Ms. KLOBUCHAR. Mr. President, I Mr. DODD. Mr. President, I ask unan- There being no objection, the Senate ask unanimous consent that the reso- imous consent that the Committee on proceeded to consider the resolution. Homeland Security and Governmental Mr. LEAHY. Mr. President, today the lution be agreed to, the preamble be Affairs be authorized to meet during Senate Judiciary Committee unani- agreed to, the motions to reconsider be the session of the Senate on Thursday, mously reported S. Res. 537 to the Sen- laid upon the table, with no inter- May 8, 2008, to conduct a hearing. ate floor. In recognition of those offi- vening action or debate, and that any The PRESIDING OFFICER. Without cers who lost their lives in 2007, the full statements relating to the resolution objection, it is so ordered. Senate has now passed this resolution. be printed in the RECORD. COMMITTEE ON THE JUDICIARY I thank Senators SPECTER, KENNEDY, The PRESIDING OFFICER. Without DURBIN, KOHL, FEINSTEIN, SCHUMER, Mr. DODD. Mr. President, I ask unan- objection, it is so ordered. imous consent that the Senate Com- HATCH, WHITEHOUSE, BIDEN, CARDIN, The resolution (S. Res. 537) was mittee on the Judiciary be authorized and BAUCUS for joining me in spon- to meet during the session of the Sen- soring this resolution. And I thank the agreed to. ate, to conduct an executive business full Senate for showing its strong sup- The preamble was agreed to. meeting on Thursday, May 8, 2008, at 10 port and appreciation of America’s law enforcement officers by unanimously The resolution, with its preamble, a.m. in room SD–226 of the Dirksen reads as follows: Senate Office Building. passing this resolution. It is something The PRESIDING OFFICER. Without in which we can all take pride. S. RES. 537 objection, it is so ordered. Last year, in 2007, 181 law enforce- Whereas the well-being of all citizens of ment officers died while serving in the SELECT COMMITTEE ON INTELLIGENCE the United States is preserved and enhanced line of duty. That is a regrettable and Mr. DODD. Mr. President, I ask unan- as a direct result of the vigilance and dedica- significant increase from just 1 year tion of law enforcement personnel; imous consent that the Select Com- earlier. Tragically, it is the most line- Whereas more than 900,000 men and mittee on Intelligence be authorized to of-duty deaths since 2001 and the losses women, at great risk to their personal safe- meet during the session of the Senate from September 11 of that year. The ty, presently serve their fellow citizens as on May 8, 2008, at 2:30 p.m. to hold a magnitude of this loss should remove guardians of the peace; closed hearing on intelligence matters. Whereas peace officers are on the front any doubts in Congress that it is nec- lines in protecting the schools and school- The PRESIDING OFFICER. Without essary to give these men and women objection, it is so ordered. children of the United States; everything they need to stay safe, and Whereas 181 peace officers across the SUBCOMMITTEE ON OVERSIGHT OF GOVERNMENT to do their jobs as effectively as they United States were killed in the line of duty MANAGEMENT, THE FEDERAL WORKFORCE AND can. during 2007, tragically the highest yearly THE DISTRICT OF COLUMBIA Currently, more than 900,000 men and total since 2001; Mr. DODD. Mr. President, I ask unan- women who guard our communities do Whereas Congress should strongly support imous consent that the Committee on so at great risk. Since the first re- initiatives to reduce violent crime and to in- Homeland Security and Governmental corded police death in 1792, there have crease the factors that contribute to the Affairs Subcommittee on Oversight of safety of law enforcement officers, includ- been more than 18,200 law enforcement ing— Government Management, the Federal officers who have made the ultimate Workforce, and the District of Colum- (1) better equipment and increased use sacrifice. There is lots of talk about of bullet-resistant vests; bia be authorized to meet during the the war on crime. Our law enforcement (2) improved training; and session of the Senate on Thursday, officers are all too often the casualties (3) advanced emergency medical care; May 8, 2008, at 10 a.m. to conduct a in that effort, and the officers who lost Whereas, every 2 days on average, 1 out of hearing entitled, ‘‘From Candidates to their lives in 2007 are a stark reminder every 16 peace officers is assaulted, 1 out of Change Makers: Recruiting and Hiring that we must not let up in our support every 56 peace officers is injured, and 1 out of the Next Generation of Federal Em- every 5,500 peace officers is killed in the line of those who work day-in and day-out of duty somewhere in the United States; and ployees.’’ in the service of their communities and THE PRESIDING OFFICER. Without Whereas, on May 15, 2008, more than 20,000 fellow citizens. peace officers are expected to gather in objection, it is so ordered. I also take this opportunity to recog- Washington, District of Columbia, to join nize that the names of 358 fallen offi- with the families of their recently fallen f cers will be added to the National Law comrades to honor those comrades and all Enforcement Officers Memorial on May others who went before them: Now, there- PRIVILEGES OF THE FLOOR 13 during a candlelight vigil that will fore, be it Mr. CRAIG. Madam President, I ask be held in their honor. These are offi- Resolved, That the Senate— unanimous consent that Colin Jones, a cers from the past and present whose (1) recognizes May 15, 2008, as ‘‘Peace Of- congressional fellow in my office from memory will be preserved at the me- ficers Memorial Day’’, in honor of the Fed- the Idaho National Laboratory, have eral, State, and local law enforcement offi- morial, ensuring that their bravery and cers that have been killed or disabled in the floor privileges during the duration of sacrifice will not be forgotten. line of duty; and my comments. National Peace Officers Memorial (2) calls on the people of the United The PRESIDING OFFICER. Without Day provides the people of the United States to observe that day with appropriate objection, it is so ordered. States, in their communities, in their ceremonies, appreciation, and respect.

VerDate Mar 15 2010 10:41 Dec 08, 2010 Jkt 069102 PO 00000 Frm 00052 Fmt 0686 Sfmt 0634 E:\BR08\S08MY8.001 S08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD 8142 CONGRESSIONAL RECORD—SENATE, Vol. 154, Pt. 6 May 8, 2008 CONGRATULATING CHARTER Public Charter School Dashboard in- nority students than the traditional public SCHOOLS FOR THEIR ONGOING cluded a national opinion poll that school system; CONTRIBUTIONS TO EDUCATION found that more than three out of four Whereas charter schools have enjoyed voters favor giving parents more op- broad bipartisan support from the President, Ms. KLOBUCHAR. Mr. President, I Congress, State Governors and legislatures, ask unanimous consent that the Sen- tions when choosing a public school for educators, and parents across the United ate proceed to the consideration of S. their children. States; and Res. 556, which was submitted earlier As we celebrate National Charter Whereas the 9th annual National Charter Schools Week with this resolution, it is today by Senator LANDRIEU. Schools Week, to be held May 5 through May The PRESIDING OFFICER. The my sincere hope that Congress will 9, 2008, is an event sponsored by charter clerk will report. commit to supporting the growth of schools and grassroots charter school organi- charter schools as critical tools for zations across the United States to recognize The assistant legislative clerk read the significant impacts, achievements, and as follows: closing the achievement gap. Ms. KLOBUCHAR. Mr. President, I innovations of charter schools: Now, there- A resolution (S. Res. 556) congratulating ask unanimous consent that the reso- fore, be it charter schools and their students, parents, lution be agreed to, the preamble be Resolved, That the Senate— teachers, and administrators across the (1) acknowledges and commends charter United States for their ongoing contribu- agreed to, the motions to reconsider be schools and their students, parents, teachers, tions to education, and for other purposes. laid upon the table, with no inter- and administrators across the United States There being no objection, the Senate vening action or debate, and that any for their ongoing contributions to education, proceeded to consider the resolution. statements relating to the resolution especially their impressive results closing Ms. LANDRIEU. Mr. President, I am be printed in the RECORD. America’s persistent achievement gap, and pleased today to rise in honor of Na- The PRESIDING OFFICER. Without improving and strengthening our public school system. tional Charter School week. The role of objection, it is so ordered. The resolution (S. Res. 556) was (2) supports the ideas and goals of the 9th charter schools has become increas- annual National Charter Schools Week; and ingly important as these institutions agreed to. The preamble was agreed to. (3) encourages the people of the United have become one of the fastest-growing The resolution, with its preamble, States to conduct appropriate programs, ceremonies, and activities to demonstrate innovative forces in education policy. reads as follows: In the past 4 years, 1,600 new charter support for charter schools during this week S. RES. 556 schools opened and 500,000 additional long celebration in communities throughout public school students chose to enroll Whereas charter schools deliver high-qual- the United States. ity education and challenge all students to f in charter schools. In the fall of 2007, reach their potential; 350 new public charter schools opened Whereas charter schools provide thousands EXECUTIVE SESSION and an additional 115,000 public school of families with diverse and innovative edu- students enrolled in these schools. Na- cational options for their children; tionwide in 40 States and Washington, Whereas charter schools are public schools NOMINATION DISCHARGED DC, over 4,300 public charter schools authorized by a designated public entity that enroll more than 1.2 million public are responding to the needs of our commu- Ms. KLOBUCHAR. Mr. President, I school students. nities, families, and students and promoting ask unanimous consent that the Sen- the principles of quality, choice, and innova- As many of you know, I have been a ate proceed to executive session and tion; that the Foreign Relations Committee longtime advocate of charter schools, Whereas, in exchange for the flexibility which not only help to better educate then be discharged of the nomination and autonomy given to charter schools, they of William J. Burns to be an Under Sec- students, but can also help to build are held accountable by their sponsors for stronger, more prosperous cities. As in- improving student achievement and for their retary of State and that the Senate cubators of innovation in education, financial and other operations; then proceed to the nomination; that public charter schools are an indispen- Whereas 40 States and the District of Co- the nomination be confirmed; that the sable component of our Nation’s edu- lumbia have passed laws authorizing charter motion to reconsider be laid upon the schools; cational landscape. table; that no further motions be in Whereas more than 4,300 charter schools order; that the President be imme- Back home in New Orleans, in the are now operating in 40 States and the Dis- aftermath of the catastrophic devasta- diately notified of the Senate’s action; trict of Columbia, serving more than 1,200,000 and that the Senate then return to leg- tion from Hurricanes Katrina and Rita students; came an opportunity to recreate a pub- Whereas, over the last 14 years, Congress islative session. lic school system through bold innova- has provided over $2,237,256,000 in support to The PRESIDING OFFICER. Without tion and community involvement. The the charter school movement through facili- objection, it is so ordered. educational entrepreneurship of public ties financing assistance and grants for plan- The nomination considered and con- charter schools has been integral to ning, startup, implementation, and dissemi- firmed is as follows: nation; DEPARTMENT OF STATE the city’s recovery. They are inspiring Whereas many charter schools improve positive changes throughout the sys- their students’ achievement and stimulate William J. Burns, of the District of Colum- tem, as other schools work to cultivate improvement in traditional public schools; bia, a Career Member of the Senior Foreign the same benefits. Our hope is that all Whereas charter schools must meet the Service, Class of Career Minister, to be an public schools in New Orleans will student achievement accountability require- Under Secretary of State (Political Affairs). enjoy the same entrepreneurship, inde- ments under the Elementary and Secondary f Education Act of 1965 in the same manner as pendence, and community involvement LEGISLATIVE SESSION that the public charter schools have traditional public schools, and often set higher and additional individual goals to en- fostered. The PRESIDING OFFICER. Under sure that they are of high quality and truly the previous order, the Senate will now Public charter schools were the first accountable to the public; schools to open after the storm and Whereas charter schools give parents new return to legislative session. they have since thrived. Today more freedom to choose their public schools, rou- f than 57 percent of the city’s public tinely measure parental satisfaction levels, school students attend public charter and must prove their ongoing success to par- ORDERS FOR MONDAY, MAY 12, schools, and more than half of our pub- ents, policymakers, and their communities; 2008 lic schools are independently char- Whereas over 50 percent of charter schools Ms. KLOBUCHAR. Mr. President, I report having a waiting list, and the total ask unanimous consent that when the tered, the highest percentage in the number of students on all such waiting lists country. is enough to fill over 1,100 average-sized Senate completes its business today, it Moreover, public charter schools are charter schools; stand adjourned until 2 p.m. Monday, gaining momentum and support around Whereas charter schools nationwide serve May 12; that following the prayer and the Nation. The recently released 2008 a higher percentage of low-income and mi- the pledge, the Journal of proceedings

VerDate Mar 15 2010 10:41 Dec 08, 2010 Jkt 069102 PO 00000 Frm 00053 Fmt 0686 Sfmt 0634 E:\BR08\S08MY8.001 S08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD May 8, 2008 CONGRESSIONAL RECORD—SENATE, Vol. 154, Pt. 6 8143 be approved to date, the morning hour sent that it stand adjourned under the MASSIMO D. FEDERICO JOSEPH S. JONES be deemed expired, the time for the two previous order. LEAH K. KERNAN leaders be reserved for their use later There being no objection, the Senate, CAROLINE K. MANS JOSHUA D. MITCHELL in the day, and there then be a period at 5:42 p.m., adjourned until Monday, BENJAMIN N. PALMER for the transaction of morning busi- May 12, 2008, at 2 p.m. ERIN S. SEEFELDT CHRISTOPHER L. TRACY ness, with Senators permitted to speak f for up to 10 minutes each. f The PRESIDING OFFICER. Without NOMINATIONS objection, it is so ordered. Executive nominations received by DISCHARGED NOMINATION f the Senate: The Senate Committee on Foreign PROGRAM THE JUDICIARY Relations was discharged from further Ms. KLOBUCHAR. Mr. President, as GLEN E. CONRAD, OF VIRGINIA, TO BE UNITED STATES consideration of the following nomina- CIRCUIT JUDGE FOR THE FOURTH CIRCUIT, VICE H. tion and the nomination was con- under a previous order, the time until EMORY WIDENER, JR., RETIRED. firmed: 5:30 p.m. Monday will be equally di- ELECTION ASSISTANCE COMMISSION WILLIAM J. BURNS, OF THE DISTRICT OF COLUMBIA, A vided and controlled between the two DONETTA DAVIDSON, OF COLORADO, TO BE A MEMBER CAREER MEMBER OF THE SENIOR FOREIGN SERVICE, OF THE ELECTION ASSISTANCE COMMISSION FOR A leaders or their designees. As pre- CLASS OF CAREER MINISTER, TO BE AN UNDER SEC- TERM EXPIRING DECEMBER 12, 2011. (REAPPOINTMENT) RETARY OF STATE (POLITICAL AFFAIRS). viously announced, there will be no ROSEMARY E. RODRIGUEZ, OF COLORADO, TO BE A rollcall votes Monday. Senators should MEMBER OF THE ELECTION ASSISTANCE COMMISSION FOR A TERM EXPIRING DECEMBER 12, 2011. (REAPPOINT- f expect a series of votes to begin as MENT) early as 11 a.m. Tuesday. IN THE ARMY CONFIRMATION f THE FOLLOWING NAMED INDIVIDUALS FOR REGULAR Executive nomination confirmed by APPOINTMENT TO THE GRADE INDICATED IN THE ADJOURNMENT UNTIL MONDAY, UNITED STATES ARMY MEDICAL CORPS UNDER TITLE 10, the Senate Thursday, May 8, 2008: U.S.C., SECTIONS 531 AND 3064: MAY 12, 2008, AT 2 P.M. DEPARTMENT OF STATE To be major Ms. KLOBUCHAR. Mr. President, if WILLIAM J. BURNS, OF THE DISTRICT OF COLUMBIA, A there is no further business to come be- BRIAN M. BOLDT CAREER MEMBER OF THE SENIOR FOREIGN SERVICE, STEVEN H. CRAIG CLASS OF CAREER MINISTER, TO BE AN UNDER SEC- fore the Senate, I ask unanimous con- LYNDAL R. EMERSON RETARY OF STATE (POLITICAL AFFAIRS).

VerDate Mar 15 2010 10:41 Dec 08, 2010 Jkt 069102 PO 00000 Frm 00054 Fmt 0686 Sfmt 9801 E:\BR08\S08MY8.001 S08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD 8144 CONGRESSIONAL RECORD—HOUSE, Vol. 154, Pt. 6 May 8, 2008 HOUSE OF REPRESENTATIVES—Thursday, May 8, 2008

The House met at 10 a.m. and was I pledge allegiance to the Flag of the HAPPY BIRTHDAY, HARRY S called to order by the Speaker pro tem- United States of America, and to the Repub- TRUMAN pore (Mr. MCNULTY). lic for which it stands, one nation under God, indivisible, with liberty and justice for all. (Mr. CARNAHAN asked and was f given permission to address the House f for 1 minute and to revise and extend DESIGNATION OF THE SPEAKER MESSAGE FROM THE SENATE his remarks.) PRO TEMPORE A message from the Senate by Ms. Mr. CARNAHAN. Mr. Speaker, in re- The SPEAKER pro tempore laid be- Curtis, one of its clerks, announced membrance of President Truman’s fore the House the following commu- that the Senate has agreed to without birthday today, I want to share a nication from the Speaker: amendment a concurrent resolution of speech my grandfather, Representative WASHINGTON, DC, the House of the following title: A.S.J. Carnahan, made on this floor May 8, 2008. H. Con. Res. 308. Concurrent resolution au- over half a century ago in April 1945 I hereby appoint the Honorable MICHAEL R. thorizing the use of the Capitol Grounds for after Truman assumed the Presidency: MCNULTY to act as Speaker pro tempore on the National Peace Officers’ Memorial Serv- ‘‘Mr. Speaker, my own native State, this day. ice. Missouri, bows with the Nation and the NANCY PELOSI, Speaker of the House of Representatives. The message also announced that the world in sorrow at the loss of the late Senate has agreed to concurrent reso- President Roosevelt. As we bow in the f lutions of the following titles in which presence of divine providence and have PRAYER the concurrence of the House is re- committed a national leader to the quested: ages, we must carry on. New hands The Chaplain, the Reverend Daniel P. S. Con. Res. 72. Concurrent Resolution sup- must take up the task of national lead- Coughlin, offered the following prayer: porting the goals and ideals of the Inter- ership. Missouri is honored to present God of the ages and Lord of all. national Year of Sanitation. to the Nation and the world the new Here in America You find a Nation S. Con. Res. 81. Concurrent Resolution sup- American leader, President Harry S that is fully modern yet guided by an- porting the goals and ideals of National Truman. cient and eternal truths. The United Women’s Health Week. ‘‘Born and reared on a Missouri farm, States is a very innovative, creative, The message also announced that the elected county judge, sent to the U.S. and dynamic country and among the Senate agrees to the amendment of the Senate, selected by President Roo- most religious on Earth. Here, faith House to the bill (S. 2929) ‘‘An Act to sevelt as a running mate, elected vice and reason were part of our foundation temporarily extend the programs under president and now President of the and coexist in harmony to this very the Higher Education Act of 1965.’’. United States, it’s typically Missou- day. This is not only one of America’s The message also announced that rian and typically American. What greatest strengths; it is one of the rea- pursuant to Public Law 110–53, the could more truly represent the Amer- sons our land remains a beacon of hope Chair, on behalf of the Vice President, ican tradition and spirit than from and opportunity for millions across the appoints the following individuals to farm boy to President? world. serve as members of the commission on ‘‘This is the first time my beloved Lord, may America’s quest for free- the Prevention of Weapons of Mass De- State of Missouri has furnished a Presi- dom continue to be guided by the con- struction Proliferation and Terrorism: dent. We are happy it is Harry Truman. viction that the principles governing Graham Allison of Massachusetts. His honesty, ability, frankness, experi- political and social life are intimately Richard Verma of Maryland. ence, and humility fit him for the very linked to a moral order based on the The message also announced that heavy tasks which lie ahead. He is dominion of God the Creator who cre- pursuant to Public Law 110–53, the equal to the occasion.’’ ated all women and men equal and en- Chair, on behalf of the Vice President, dowed with inalienable rights grounded appoints the following individual to f in the laws of nature and nature’s God. serve as a member and Chairman of the CONGRATULATING TROOPER This vision, Lord, gives us the power to Commission on the Prevention of ROBERT ‘‘BOBBY’’ HAYSLIP Weapons of Mass Destruction Prolifera- act giving You glory now and forever. (Mrs. SCHMIDT asked and was given Amen. tion and Terrorism: The Honorable BOB GRAHAM of Flor- permission to address the House for 1 f ida. minute and to revise and extend her re- THE JOURNAL The message also announced that marks.) pursuant to Public Law 110–53, the Mrs. SCHMIDT. Mr. Speaker, I rise The SPEAKER pro tempore. The Chair, on behalf of the Vice President, today to congratulate Trooper Robert Chair has examined the Journal of the appoints the following individuals to ‘‘Bobby’’ Hayslip of West Union, Ohio, last day’s proceedings and announces serve as members of the Commission for being awarded the Ohio State High- to the House his approval thereof. on the Prevention of Weapons of Mass way Patrol’s Trooper of the Year Pursuant to clause 1, rule I, the Jour- Destruction Proliferation and Ter- Award. nal stands approved. rorism: Trooper Bobby Hayslip was commis- f Robin Cleveland of Virginia. sioned a State Trooper only 6 years ago James Talent of Missouri. as part of the 138th academy class and PLEDGE OF ALLEGIANCE f has quickly risen to the top. Bobby’s The SPEAKER pro tempore. Will the District Commander, Captain Daniel gentleman from Missouri (Mr. ANNOUNCEMENT BY THE SPEAKER Kolcum, best describes him as being CARNAHAN) come forward and lead the PRO TEMPORE hardworking and aggressive but also House in the Pledge of Allegiance. The SPEAKER pro tempore. The compassionate and professional. Mr. CARNAHAN led the Pledge of Al- Chair will entertain up to five 1-minute Trooper Hayslip is known for being a legiance as follows: speeches on each side of the aisle. leader in making both enforcement and

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

VerDate Mar 15 2010 15:08 Nov 08, 2010 Jkt 069102 PO 00000 Frm 00001 Fmt 0688 Sfmt 0634 E:\BR08\H08MY8.000 H08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD May 8, 2008 CONGRESSIONAL RECORD—HOUSE, Vol. 154, Pt. 6 8145 non-enforcement contacts; he is con- Chestnut. He headed to the majority the legislation. The earmark was not stantly working to keep Ohioans safe leader’s office and wounded Officer in either the House or Senate version. through investigations, assisting mo- Douglas McMillan and tourist Angela Now, one would think that the dis- torists, and getting drunk and im- Dickerson. His shooting stopped after covery of an immaculate earmark paired drivers off Ohio’s roads. The he murdered John Gibson, who lit- would prompt an immediate congres- dedication of Trooper Hayslip does not erally gave his life for a Member of sional investigation. Instead, we wait- end after his shift. It continues in his Congress. ed 2 years and then authorized the Jus- free time as a volunteer working with In these hallowed halls, we have por- tice Department to look into it. local juvenile traffic offenders and at- traits and statues of great Americans Mr. Speaker, we owe this great insti- risk high school students. that have lived before us, but the spirit tution far better than we’re giving it, Mr. Speaker, I am very thankful that of duty, sacrifice, and honor is still from bridges to nowhere to teapot mu- the best trooper in the State of Ohio is alive and on display daily by those seums, to immaculate earmarks that patrolling Ohio’s Second Congressional Capitol Police who serve us so well. we don’t even pass, let alone scrutinize. District. They carry on the tradition of Chest- We can do far better than this. Congratulations, Bobby, and contin- nut, McMillan, and Gibson, those noble f ued success in years to come. three that stood in the line of fire for THE 60TH ANNIVERSARY OF THE f the rest of us. FOUNDING OF ISRAEL And that’s just the way it is. WHY ARE WE STILL IN IRAQ? (Mr. BARROW asked and was given f (Mr. KUCINICH asked and was given permission to address the House for 1 permission to address the House for 1 HONORING STAFF SERGEANT minute.) minute and to revise and extend his re- MICHAEL BROUSSARD Mr. BARROW. Mr. Speaker, in 6 days, on May 14, we observe the 60th anniver- marks.) (Mr. MCNERNEY asked and was Mr. KUCINICH. Mr. Speaker, with given permission to address the House sary of the declaration of the independ- this House on the threshold of granting for 1 minute.) ence of the State of Israel. That’s also the 60th anniversary, I’m proud to say, the President $183 billion to continue Mr. MCNERNEY. Today it gives me the war in Iraq long past his term, it’s great pleasure to rise in honor of Staff of the day that the administration of President Harry Truman recognized an appropriate time to ask why are we Sergeant Michael Broussard of Contra the State of Israel as a free and inde- still in Iraq, especially since the Demo- Costa County’s own Brentwood, Cali- pendent state. cratic leadership promised the Amer- fornia, for winning the 25th Best Rang- Throughout the past 60 years, the re- ican people, 2 years ago, that if they er Competition, one of the Army’s ath- lationship between the United States voted Democrat, we’d move to end the letic achievements. and Israel has been based on a shared war. Why are we still in Iraq? Held at Fort Benning, Georgia, the commitment to democratic values. Why are we still in Iraq? Iraq had competition tests a Ranger’s physical Also, for the past 60 years Israel has nothing to do with 9/11, with al Qaeda’s and mental toughness and self-dis- stood on the front lines in confronting role in 9/11. Iraq didn’t have weapons of cipline. Of the 28 participants, only 16 those who would use terror against ci- mass destruction. Why have we lost were able to complete the grueling 3- vilian populations as a means of bring- 4,000 of our finest troops? Why have we day athletic competition, which fea- ing about political change. seen tens of thousands of Americans in- tures some of the best athletes in the Throughout that time, the United jured? Why have we seen over a million world. States has stood for the political inde- innocent Iraqis killed? Despite this honor, I believe Staff pendence and the physical security of The war is based on lies. The Bible Sergeant Broussard’s greatest achieve- the State of Israel. But we usually find says, you shall know the truth and the ment is that he repeatedly served this ourselves as being in the rear echelons truth shall set you free. We need to Nation with distinction by completing as standing behind Israel more than start telling the truth here on this two deployments to Iraq and two de- standing beside Israel. But not any floor about the war in Iraq. And we ployments to Afghanistan. more. need to end the war, end the occupa- Mr. Speaker, Sergeant Broussard is a Ever since 9/11, we in the United tion, close the bases, bring our troops true American hero and an example of States have come to realize that we’re home. Why are we still in Iraq? the commitment, dedication, and capa- members of the same club, that we, This is a wake-up call for the Amer- bility of our men and women in uni- too, stand on the front lines alongside ican people. This is a wake-up call for form on and off the battlefield. Israel in an ongoing war on terror. We the Congress. This is a wake-up call to f not only belong to the same philo- stand for the truth. THE PRACTICE OF EARMARKS IS sophical society, we’re also serving in f OUT OF CONTROL the same outfit. THE NOBLE THREE As we congratulate Israel on its 60th (Mr. FLAKE asked and was given birthday, we look forward to the day (Mr. POE asked and was given per- permission to address the House for 1 when each of us will be able to devote mission to address the House for 1 minute.) less of our national treasures to the minute.) Mr. FLAKE. Mr. Speaker, many of us vital work of survival and national de- Mr. POE. Mr. Speaker, America’s in this body have realized for quite a fense and be able, instead, to devote lawmen are the last strand of wire in while that the practice of earmarking more of our national treasures to more the fence between the law and the out- is out of control. When we herald the profitable enterprises. laws. They are all that stands between fact that we had a mere 12,000 ear- On behalf of my fellow Georgians, I chaos and civilization, between the marks last year, as opposed to only congratulate Israel on this milestone, barbarians and the people, and between 15,000 a couple of years ago, we know and I pledge my best efforts to making what is good and what is evil. that something is wrong. the next 60 years of our relationship to- As we honor these lawmen, I give But the exercise we went through gether years of peace and prosperity. special attention to the Capitol Police last week was perhaps the best indica- f Officers. These officers are on duty 24 tion we had yet that we still have a hours a day in the halls, on the roof, long way to go. We authorized the Jus- STOP HOLDING THE VOTE ON H.R. and in the shadows of this Capitol dili- tice Department to investigate the ori- 3058 HOSTAGE gently protecting this shrine of democ- gin of an immaculate earmark, an ear- (Mr. WALDEN of Oregon asked and racy. mark that wasn’t in either the House was given permission to address the Ten years ago, a madman entered the or Senate version of the bill, that only House for 1 minute and to revise and Capitol, shot and killed Officer Jacob showed up when the President signed extend his remarks.)

VerDate Mar 15 2010 15:08 Nov 08, 2010 Jkt 069102 PO 00000 Frm 00002 Fmt 0688 Sfmt 0634 E:\BR08\H08MY8.000 H08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD 8146 CONGRESSIONAL RECORD—HOUSE, Vol. 154, Pt. 6 May 8, 2008 Mr. WALDEN of Oregon. Mr. Speak- should be some sort of help. I don’t Wednesday, May 7, 2008, a request for a er, by refusing to renew the county know what, but with all the intelligent recorded vote on amendment No. 7 payments program, Congress has bro- people in Washington, it seems they printed in House Report 110–621 by the ken its pledge to rural areas all across could come up with some kind of plan gentleman from Pennsylvania (Mr. this country like Lake County, Oregon, for people like these so they don’t lose ALTMIRE) had been postponed. where Federal land covers 61 percent of all they have made.’’ Pursuant to clause 6 of rule XVIII, the county. That was Jonell Stinnett, one voice proceedings will now resume on those Lake County has had to cut its road from Kentucky’s Third District. amendments printed in House Report department from 42 people to 14, the f 110–621 on which further proceedings equipment is aging and overworked, it were postponed, in the following order: GAS PRICES needs maintenance on the roads that’s Amendment No. 4 by Mr. HENSARLING being deferred. In this winter’s record (Mrs. CAPITO asked and was given of Texas. snowfall, or near-record, Lake County permission to address the House for 1 Amendment No. 7 by Mr. ALTMIRE of had to call in the Oregon Air National minute and to revise and extend her re- Pennsylvania. Guard to come in and help plow the marks.) The Chair will reduce to 5 minutes streets so the safety vehicles could get Mrs. CAPITO. Madam Speaker, I rise the time for any electronic vote after through this county that’s larger than today because high gas prices are plac- the first vote in this series. ing an increasingly heavy burden on the States of Connecticut and Dela- AMENDMENT NO. 4 OFFERED BY MR. HENSARLING ware combined. Now they will be forced everyone, including my fellow West The Acting CHAIRMAN. The unfin- to let paved roads revert to gravel. Virginians. As gas prices continue to ished business is the demand for a re- H.R. 3058 would solve this problem spike, we deserve a sound energy policy corded vote on the amendment offered and would help keep the roads open in that creates new domestic sources of by the gentleman from Texas (Mr. energy, increases supply and puts Lake County and schools open HENSARLING) on which further pro- throughout the west. Yet H.R. 3058 is downward pressure on gas prices. ceedings were postponed and on which I’ve supported anti-gouging legisla- still held hostage on the Union Cal- the noes prevailed by voice vote. tion and called on the President to halt endar. It’s been approved by the com- The Clerk will redesignate the shipments to the Strategic Petroleum mittees of this House. It has been held amendment. Reserve, which could increase supply hostage since January 15. This is day The text of the amendment is as fol- and possibly save as much as 24 cents 114. lows: All we’re asking is that the majority from the price of a gallon of gas. We’ve also increased fuel economy Amendment No. 4 offered by Mr. schedule it for a vote on this House HENSARLING: standards to make each gallon stretch floor. Let us vote on secure rural Page 2, line 10, strike ‘‘and grant’’. a little further. Yet West Virginians schools and roads just to vote. That’s Page 3, line 1, strike ‘‘and grants’’. deserve a more comprehensive, long- all. Let’s keep the commitment of the Page 3, line 10, strike ‘‘AND GRANTS’’. term solution that provides real sta- Page 3, line 13, strike ‘‘make grants under Federal Government for 100 years to bility and actually leads to the cre- section 5(a) to qualified States and’’. these rural communities where Federal ation of new energy. Page 3, lines 18 and 19, strike ‘‘make a land makes up the bulk of their coun- From clean coal to oil exploration grant under this Act only to a State, and ties. and drilling to our desperate need for may’’. I call on the Democrat leadership, Page 4, line 25, strike ‘‘grant and’’. new refineries to expanded natural gas Page 5, line 3, strike ‘‘grant and’’. day 114 held hostage, H.R. 3058, bring it exploration, we have a wide range of up for a vote. Page 5, line 7, strike ‘‘grant or’’. options and ways to make a difference. Page 6, line 8, strike ‘‘grant and’’. f Unfortunately, many of my colleagues Page 6, lines 21 and 22, strike ‘‘grant amounts, and for’’. b 1015 on the other side of the aisle have stood in the way of a truly comprehen- Page 7, line 1, strike ‘‘grant or’’. JONELL STINNETT sive energy policy. Strike line 22 on page 8 and all that follows It’s time that Congress stop the rhet- through page 9, line 2. (Mr. YARMUTH asked and was given Page 9, line 9, strike ‘‘GRANT AMOUNTS permission to address the House for 1 oric and work for real solutions. AND’’. minute.) f Page 9, line 11, strike ‘‘grant amount or’’. Page 9, lines 12 and 13, strike ‘‘foreclosure Mr. YARMUTH. Mr. Speaker, I rise NEIGHBORHOOD STABILIZATION to tell the story of Jonell Stinnett grant share’’. ACT OF 2008 Page 9, line 13, strike ‘‘or’’. from my district in Fairdale, Ken- The SPEAKER pro tempore (Ms. Page 9, lines 13 and 14, strike ‘‘, respec- tucky. Here are her words: SOLIS). Pursuant to House Resolution tively,’’. ‘‘My story is about my brother and 1174 and rule XVIII, the Chair declares Page 9, line 20, strike ‘‘grant amount or’’. Page 9, line 22, strike ‘‘foreclosure grant his wife who died last September. the House in the Committee of the Carol, my sister-in-law, had colon can- share or’’. Whole House on the state of the Union Page 9, line 23, strike ‘‘, respectively,’’ and cer for over 7 years. She took chemo for the further consideration of the for the last 5 years of her life. ‘‘the grant amount or’’. bill, H.R. 5818. Page 9, line 25, strike ‘‘foreclosure grant ‘‘My brother had a heart attack 2 share or’’. years after she was diagnosed. A week b 1018 Page 10, line 1, strike ‘‘, respectively,’’. after his heart surgery, he had a mas- IN THE COMMITTEE OF THE WHOLE Page 10, line 2, strike ‘‘grant amounts or’’. sive stroke which paralyzed his right Accordingly, the House resolved Page 10, line 6, strike ‘‘grant amounts or’’. side, and then he got a diabetic ulcer itself into the Committee of the Whole Page 10, line 9, strike ‘‘grant amount or’’. on his foot and finally had to have his Page 10, line 11, strike ‘‘grant amount or’’. House on the state of the Union for the Page 10, line 13, strike ‘‘foreclosure grant leg amputated. further consideration of the bill (H.R. share or’’. ‘‘Needless to say, their medical bills 5818) to authorize the Secretary of Page 10, line 14, strike ‘‘, respectively’’. were massive. They lost everything Housing and Urban Development to Page 10, line 16, strike ‘‘grant or’’. they had worked for their whole life. I make loans to States to acquire fore- Page 10, line 18, strike ‘‘or grants’’. take care of him now, and he needed to closed housing and to make grants to Strike line 23 on page 10 and all that fol- file bankruptcy. He needs a ramp to get States for related costs, with Mr. lows through page 11, line 10. out his front door, a safe way to take a Page 12, line 3, strike ‘‘grant and’’. MCNULTY (Acting Chairman) in the Page 12, strike lines 5 through 7. shower, but there is no help anywhere. chair. Page 12, line 14, strike ‘‘grant amounts ‘‘I believe as an American citizen The Clerk read the title of the bill. and’’. who has worked, paid taxes, and served The Acting CHAIRMAN. When the Page 12, lines 17 and 18, strike ‘‘such grant his country in the Armed Forces, there Committee of the Whole rose on amounts and’’.

VerDate Mar 15 2010 15:08 Nov 08, 2010 Jkt 069102 PO 00000 Frm 00003 Fmt 0688 Sfmt 0634 E:\BR08\H08MY8.000 H08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD May 8, 2008 CONGRESSIONAL RECORD—HOUSE, Vol. 154, Pt. 6 8147 Page 12, line 19, strike ‘‘grant amounts Kirk Myrick Schmidt Sestak Tanner Walz (MN) and’’. Kline (MN) Neugebauer Sensenbrenner Shea-Porter Tauscher Wasserman Page 12, line 20, strike ‘‘, respectively,’’. Knollenberg Nunes Sessions Sherman Taylor Schultz Kuhl (NY) Paul Shadegg Shuler Thompson (CA) Waters Page 13, line 8, strike ‘‘grant amounts LaHood Pearce Sires Thompson (MS) Watson and’’. Shays Lamborn Pence Shimkus Skelton Tierney Watt Page 13, lines 11 and 12, strike ‘‘grant Lampson Peterson (PA) Shuster Slaughter Towns Waxman amounts and’’. Latham Petri Simpson Smith (WA) Tsongas Weiner Snyder Turner Welch (VT) Page 13, line 13, strike ‘‘grant amounts LaTourette Pickering Smith (NE) Solis Udall (CO) Wexler and’’. Latta Pitts Smith (NJ) Speier Udall (NM) Wilson (OH) Page 13, line 14, strike ‘‘, respectively,’’. Lewis (CA) Platts Smith (TX) Lewis (KY) Poe Spratt Van Hollen Woolsey Souder Page 14, lines 1 and 2, strike ‘‘grant and’’. Linder Porter Stark Vela´ zquez Wu Stearns Page 14, line 5, strike ‘‘grant and’’. LoBiondo Price (GA) Stupak Visclosky Wynn Sullivan Page 14, line 8, strike ‘‘grant and’’. Lucas Pryce (OH) Sutton Walsh (NY) Yarmuth Tancredo Page 14, line 12, strike ‘‘grant amounts Lungren, Daniel Putnam NOT VOTING—29 and’’. E. Radanovich Terry Thornberry Page 14, line 17, strike ‘‘grant amounts Mack Ramstad Arcuri Cooper McIntyre Tiahrt Barrow Costa Melancon and’’. Manzullo Regula Marchant Rehberg Tiberi Bean Cramer Moore (KS) Page 17, strike lines 21 through 25. McCarthy (CA) Reichert Upton Bishop (GA) Cubin Pomeroy Strike line 18 on page 19 and all that fol- McCaul (TX) Renzi Walberg Boren Giffords Richardson lows through page 21, line 24. McCotter Reynolds Walden (OR) Campbell (CA) Goode Rush Page 22, line 2, strike ‘‘grant or’’. McCrery Rogers (AL) Wamp Carney Hill Schiff Strike line 12 on page 22 and all that fol- McHugh Rogers (KY) Weldon (FL) Chandler Loebsack Space Clay Mahoney (FL) McKeon Rogers (MI) Weller Young (AK) lows through page 24, line 4. Cohen McHenry Page 24, line 6, strike ‘‘grant or’’. McMorris Rohrabacher Westmoreland Rodgers Roskam Page 24, lines 7 and 8, strike ‘‘grant and’’. Whitfield (KY) b 1045 Mica Royce Wilson (NM) Page 24, line 23, strike ‘‘or grant’’. Miller (FL) Ruppersberger Wilson (SC) Messrs. SERRANO, JOHNSON of Page 24, line 25, strike ‘‘or grant’’. Miller (MI) Ryan (WI) Wittman (VA) Georgia, FARR, GORDON of Tennessee Page 27, line 13, strike ‘‘grant or’’. Miller, Gary Sali Wolf and Ms. SPEIER, Ms. ROS-LEHTINEN, Page 27, line 19, strike ‘‘or grant’’. Moran (KS) Saxton Young (FL) Ms. SLAUGHTER and Mrs. Page 28, lines 12 and 13, strike ‘‘receives a Musgrave Scalise grant under this Act or’’. GILLIBRAND changed their vote from NOES—219 Page 28, lines 15 and 16, strike ‘‘obligation ‘‘aye’’ to ‘‘no.’’ of such grant amounts and’’. Abercrombie Engel Lynch So the amendment was rejected. Page 28, line 20, strike ‘‘obligate all such Ackerman Eshoo Maloney (NY) The result of the vote was announced grant amounts and’’. Allen Etheridge Markey as above recorded. Altmire Faleomavaega Marshall Page 28, lines 24 and 25, strike ‘‘outlay all Andrews Farr Matheson Stated for: such grant amounts and’’. Baca Fattah Matsui Mr. POMEROY. Mr. Chairman, on May 8, Page 30, line 3, strike ‘‘a grant or’’ and in- Baird Filner McCarthy (NY) 2008, I missed rollcall vote No. 295. Had I sert ‘‘an’’. Baldwin Fortun˜ o McCollum (MN) been present, I would have voted in the fol- Becerra Foster McDermott Page 30, line 13, strike ‘‘grant or’’. lowing manner: Rollcall No. 295, ‘‘yea.’’ Page 30, lines 14 and 15, strike ‘‘grant or’’. Berkley Frank (MA) McGovern Berman Gillibrand McNerney Mr. MCINTYRE. Mr. Chairman, on rollcall Page 30, line 19, strike ‘‘grant or’’. Berry Gonzalez McNulty No. 295, had I been present, I would have Page 35, strike lines 8 through 10. Bishop (NY) Gordon Meek (FL) voted ‘‘no.’’ Page 35, line 21, strike ‘‘$7,500,000,000’’ and Blumenauer Green, Al Meeks (NY) insert ‘‘$15,000,000,000’’. Bordallo Green, Gene Michaud Mr. SCHIFF. Mr. Chairman, on rollcall No. Boswell Grijalva Miller (NC) 295, had I been present, I would have voted RECORDED VOTE Boucher Gutierrez Miller, George ‘‘no.’’ The Acting CHAIRMAN. A recorded Boyd (FL) Hall (NY) Mitchell Mr. WESTMORELAND. Mr. Chair- vote has been demanded. Boyda (KS) Hare Mollohan Brady (PA) Harman Moore (WI) man, parliamentary inquiry. A recorded vote was ordered. Braley (IA) Hastings (FL) Moran (VA) The Acting CHAIRMAN. The gen- The vote was taken by electronic de- Brown, Corrine Herseth Sandlin Murphy (CT) tleman may state his inquiry. vice, and there were—ayes 190, noes 219, Butterfield Higgins Murphy, Patrick Mr. WESTMORELAND. Mr. Chair- Capps Hinchey Murphy, Tim man, in light of the conversation that not voting 29, as follows: Capuano Hinojosa Murtha [Roll No. 295] Cardoza Hirono Nadler the majority leader and the minority Carnahan Hodes Napolitano AYES—190 leader had last night as far as leaving Carson Holden Neal (MA) votes open, and I believe the majority Aderholt Cantor Franks (AZ) Castor Holt Norton Akin Capito Frelinghuysen Cazayoux Honda Oberstar leader said the vote would be for 15 Alexander Carter Gallegly Christensen Hooley Obey minutes, and then a 2-minute courtesy Bachmann Castle Garrett (NJ) Clarke Hoyer Olver period, could you tell me the tally of Bachus Chabot Gerlach Cleaver Inslee Ortiz the vote at the end of the 15 minutes Barrett (SC) Coble Gilchrest Clyburn Israel Pallone Bartlett (MD) Cole (OK) Gingrey Conyers Jackson (IL) Pascrell and the 2-minute courtesy period? Barton (TX) Conaway Gohmert Costello Jackson-Lee Pastor The Acting CHAIRMAN. The gen- Biggert Crenshaw Goodlatte Courtney (TX) Payne tleman has not stated a parliamentary Bilbray Culberson Granger Crowley Jefferson Perlmutter Bilirakis Davis (KY) Graves Cuellar Johnson (GA) Peterson (MN) inquiry. Bishop (UT) Davis, David Hall (TX) Cummings Johnson, E. B. Price (NC) POINT OF ORDER Blackburn Davis, Tom Hastings (WA) Davis (AL) Jones (OH) Rahall Mr. WESTMORELAND. Mr. Chair- Blunt Deal (GA) Hayes Davis (CA) Kagen Rangel man, I make a point of order under Boehner Dent Heller Davis (IL) Kanjorski Reyes Bonner Doolittle Hensarling Davis, Lincoln Kaptur Rodriguez clause 2(a) of rule XX that the vote Bono Mack Drake Herger DeFazio Kennedy Ros-Lehtinen just ended was held open for the sole Boozman Dreier Hobson DeGette Kildee Ross purpose of reversing the outcome. Boustany Duncan Hoekstra Delahunt Kilpatrick Rothman The Acting CHAIRMAN. The Chair Brady (TX) Ehlers Hulshof DeLauro Kind Roybal-Allard Broun (GA) Emerson Hunter Diaz-Balart, L. Klein (FL) Ryan (OH) has considered whether the new sen- Brown (SC) English (PA) Inglis (SC) Diaz-Balart, M. Kucinich Salazar tence in clause 2(a) of rule XX should Brown-Waite, Everett Issa Dicks Langevin Sa´ nchez, Linda be enforceable in real time. Ginny Fallin Johnson (IL) Dingell Larsen (WA) T. Buchanan Feeney Johnson, Sam Doggett Larson (CT) Sanchez, Loretta The black letter of the rule is not Burgess Ferguson Jones (NC) Donnelly Lee Sarbanes dispositive. It uses the mandatory Burton (IN) Flake Jordan Doyle Levin Schakowsky ‘‘shall.’’ It might just as well say Buyer Forbes Keller Edwards Lewis (GA) Schwartz ‘‘should,’’ inasmuch as it is setting a Calvert Fortenberry King (IA) Ellison Lipinski Scott (GA) Camp (MI) Fossella King (NY) Ellsworth Lofgren, Zoe Scott (VA) standard of behavior for presiding offi- Cannon Foxx Kingston Emanuel Lowey Serrano cers. For this reason the Chair thinks

VerDate Mar 15 2010 15:08 Nov 08, 2010 Jkt 069102 PO 00000 Frm 00004 Fmt 0688 Sfmt 0634 E:\BR08\H08MY8.000 H08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD 8148 CONGRESSIONAL RECORD—HOUSE, Vol. 154, Pt. 6 May 8, 2008 it more sensible to enforce the rule on The Chair understands that the dis- Higgins McDermott Schwartz collateral bases, as by a question of the play board initially said ‘‘appealing the Hill McGovern Scott (GA) Hinchey McIntyre Scott (VA) privileges of the House. ruling of the Chair,’’ which was incor- Hinojosa McNerney Serrano A set of ‘‘whereas’’ clauses in the pre- rect. So for the information of all Hirono McNulty Sestak amble of a resolution could allege the Members of the House, in case of any Hodes Meek (FL) Shea-Porter facts and circumstances tending to in- Holden Meeks (NY) Sherman misapprehension, the question is on Holt Melancon dicate a violation more coherently Shuler sustaining the ruling of the Chair, not Honda Michaud Sires than they could be articulated in argu- on whether an appeal shall take place. Hooley Miller (NC) Skelton Hoyer Mitchell ment on a point of order or in debate Mr. LINDER. I ask unanimous con- Slaughter Inslee Mollohan Smith (WA) on an appeal. The resolving clause of a sent that the vote be restarted. Israel Moore (KS) Snyder resolution could propose a fitting rem- Mr. SCOTT of Virginia. I object. Jackson (IL) Moore (WI) Solis edy, rather than requiring the instant Jackson-Lee Moran (VA) Mr. LINDER. I ask unanimous con- Space selection of a remedy in the face of (TX) Murphy (CT) sent that we vacate this vote. Jefferson Murphy, Patrick Speier competing demands for vitiation of the The Acting CHAIRMAN. Objection is Johnson (GA) Murtha Spratt putative result, reversal of the puta- heard. Johnson (IL) Nadler Stark Stupak tive result, or admonishment of the Mr. LINDER. So moved. Johnson, E. B. Napolitano presiding officer. Jones (NC) Neal (MA) Sutton The Acting CHAIRMAN. Such a mo- Jones (OH) Norton Tanner The Chair finds that the new sen- tion is not in order. Kagen Oberstar Tauscher tence in clause 2(a) of rule XX does not Voting will resume. All Members are Kanjorski Obey Taylor Kaptur Thompson (CA) establish a point of order having an im- advised that the question is on sus- Olver mediate procedural remedy. Rather Kennedy Ortiz Thompson (MS) taining the ruling of the Chair. Ade- Kildee Pallone than contemplating a ruling from the Tierney quate time will remain for any Member Kilpatrick Pascrell Towns Chair in real time, the language should who wishes to verify his or her vote. Kind Pastor Tsongas Klein (FL) Payne be understood to establish a standard Mr. LINDER. Mr. Chairman, I ask Udall (CO) of behavior for presiding officers that Kucinich Perlmutter Udall (NM) unanimous consent again that we va- LaHood Peterson (MN) might be enforced on collateral bases. Van Hollen cate the vote. Lampson Pomeroy Vela´ zquez Mr. WESTMORELAND. Mr. Chair- Langevin Price (NC) Visclosky The Acting CHAIRMAN. Is there ob- Larsen (WA) Rahall man, with that I appeal the ruling of Walz (MN) Larson (CT) Rangel jection? The Chair hears none. Wasserman the Chair. Lee Reyes As soon as the Clerk is prepared, the Schultz Mr. FRANK of Massachusetts. Mr. Levin Rodriguez Waters Chairman, I move to lay the appeal on pending vote will be vacated and the Lewis (GA) Ross Watson the table. Chair will put the question anew. Lipinski Rothman The question before the House is, Lofgren, Zoe Roybal-Allard Watt The Acting CHAIRMAN. The motion Lowey Ruppersberger Waxman to lay on the table is not in order in Shall the decision of the Chair stand as Lynch Ryan (OH) Weiner the Committee of the Whole. the judgment of the Committee? Mahoney (FL) Salazar Welch (VT) The question is, Shall the decision of The question was taken; and the Act- Maloney (NY) Sa´ nchez, Linda Wexler ing Chairman announced that the ayes Markey T. Wilson (OH) the Chair stand as the judgment of the Marshall Sanchez, Loretta Woolsey Committee? appeared to have it. Matheson Sarbanes Wynn The question was taken; and the Act- RECORDED VOTE Matsui Schakowsky Yarmuth ing Chairman announced that the noes Mr. WALDEN of Oregon. Mr. Chair- McCollum (MN) Schiff Young (FL) appeared to have it. man, I demand a recorded vote. NOES—182 Mr. FRANK of Massachusetts. Mr. A recorded vote was ordered. Chairman, I demand a recorded vote. Aderholt Deal (GA) Keller The Acting CHAIRMAN. This 15- Akin Dent King (IA) A recorded vote was ordered. minute vote will be followed by a 5- Alexander Diaz-Balart, L. King (NY) The Acting CHAIRMAN. This 15- minute vote. Bachmann Diaz-Balart, M. Kingston minute vote on sustaining the ruling of Barrett (SC) Doolittle Kirk The vote was taken by electronic de- the Chair will be followed by a 5- Bartlett (MD) Drake Kline (MN) vice, and there were—ayes 235, noes 182, Barton (TX) Dreier Knollenberg minute vote. answered ‘‘present’’ 6, not voting 15, as Biggert Duncan Kuhl (NY) Mr. LINDER (during the vote). Mr. Bilbray Ehlers Lamborn Chairman, I was standing right by the follows: Bilirakis Emerson Latham gentleman who made the motion. The [Roll No. 296] Bishop (UT) English (PA) Latta Blackburn Everett Lewis (CA) motion was to appeal the ruling of the AYES—235 Blunt Fallin Lewis (KY) Chair. Abercrombie Carnahan Doggett Bonner Feeney Linder Who changed the motion to sus- Ackerman Carney Donnelly Bono Mack Ferguson LoBiondo taining it? Allen Carson Doyle Boozman Flake Lucas Altmire Castor Edwards Boustany Forbes Mack The Acting CHAIRMAN. The Chair Andrews Cazayoux Ellison Brady (TX) Fortenberry Manzullo would advise the gentleman from Geor- Arcuri Chandler Ellsworth Broun (GA) Fortun˜ o Marchant gia that the Chair put the question cor- Baca Christensen Emanuel Brown (SC) Fossella McCarthy (CA) Baird Clarke Engel Brown-Waite, Foxx McCaul (TX) rectly, that it is whether the ruling of Baldwin Clay Eshoo Ginny Franks (AZ) McCotter the Chair shall stand. Barrow Cleaver Etheridge Buchanan Frelinghuysen McCrery Mr. LINDER. That wasn’t the mo- Bean Clyburn Faleomavaega Burgess Gallegly McHenry tion. The motion was to appeal the rul- Becerra Conyers Farr Burton (IN) Garrett (NJ) McHugh Berkley Cooper Fattah Buyer Gerlach McKeon ing of the Chair. Berman Costa Filner Calvert Gingrey McMorris The Acting CHAIRMAN. The ques- Berry Costello Foster Camp (MI) Gohmert Rodgers tion that the Chair properly put was Bishop (GA) Courtney Frank (MA) Cannon Goodlatte Mica whether the ruling of the Chair shall be Bishop (NY) Cramer Giffords Cantor Granger Miller (FL) Blumenauer Crowley Gillibrand Capito Graves Miller (MI) sustained. Boren Cuellar Gonzalez Carter Hall (TX) Miller, Gary Mr. LINDER. Would you tell me who Boswell Cummings Goode Castle Hastings (WA) Moran (KS) changed the ruling from ‘‘appeal’’ to Boucher Davis (AL) Gordon Chabot Hayes Murphy, Tim ‘‘sustain’’? Boyd (FL) Davis (CA) Green, Al Coble Heller Musgrave Boyda (KS) Davis (IL) Green, Gene Cole (OK) Hensarling Myrick The Acting CHAIRMAN. The Chair Brady (PA) Davis, Lincoln Grijalva Conaway Herger Neugebauer would advise the gentleman from Geor- Braley (IA) DeFazio Gutierrez Crenshaw Hobson Nunes gia the question on appeal is, as always Brown, Corrine DeGette Hall (NY) Cubin Hoekstra Pearce in the Committee of the Whole, ‘‘Shall Butterfield Delahunt Hare Culberson Inglis (SC) Peterson (PA) Capps DeLauro Harman Davis (KY) Issa Petri the decision of the Chair stand as the Capuano Dicks Hastings (FL) Davis, David Johnson, Sam Pitts judgment of the Committee?’’ Cardoza Dingell Herseth Sandlin Davis, Tom Jordan Poe

VerDate Mar 15 2010 15:08 Nov 08, 2010 Jkt 069102 PO 00000 Frm 00005 Fmt 0688 Sfmt 0634 E:\BR08\H08MY8.000 H08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD May 8, 2008 CONGRESSIONAL RECORD—HOUSE, Vol. 154, Pt. 6 8149 Porter Saxton Tiahrt Bilbray Everett Linder Ruppersberger Smith (TX) Visclosky Price (GA) Scalise Tiberi Bilirakis Faleomavaega Lipinski Ryan (OH) Smith (WA) Walberg Pryce (OH) Schmidt Turner Bishop (GA) Fallin LoBiondo Ryan (WI) Snyder Walden (OR) Putnam Sensenbrenner Upton Bishop (NY) Fattah Lofgren, Zoe Salazar Souder Walsh (NY) Radanovich Sessions Walberg Bishop (UT) Feeney Lowey Sali Space Walz (MN) Ramstad Shadegg Walden (OR) Blackburn Ferguson Lucas Sarbanes Speier Wamp Regula Shays Walsh (NY) Blumenauer Flake Lungren, Daniel Saxton Spratt Wasserman Rehberg Shimkus Wamp Blunt Forbes E. Scalise Stearns Schultz Reichert Shuster Boehner Fortenberry Lynch Schiff Stupak Weldon (FL) Waters Renzi Simpson Bonner Fortun˜ o Mack Schmidt Sullivan Weller Watson Reynolds Smith (NE) Bono Mack Fossella Mahoney (FL) Schwartz Tancredo Westmoreland Watt Rogers (AL) Smith (NJ) Boozman Foster Maloney (NY) Scott (GA) Tanner Waxman Rogers (KY) Smith (TX) Whitfield (KY) Boren Foxx Manzullo Scott (VA) Tauscher Weiner Rogers (MI) Souder Wilson (NM) Boswell Frank (MA) Marchant Sensenbrenner Taylor Weldon (FL) Ros-Lehtinen Stearns Wilson (SC) Boucher Franks (AZ) Markey Sessions Terry Weller Roskam Sullivan Wittman (VA) Boustany Frelinghuysen Marshall Sestak Thompson (CA) Royce Tancredo Wolf Boyd (FL) Gallegly Matheson Shadegg Thompson (MS) Westmoreland Ryan (WI) Terry Young (AK) Boyda (KS) Garrett (NJ) Matsui Shays Thornberry Wexler Sali Thornberry Brady (PA) Gerlach McCarthy (CA) Shea-Porter Tiahrt Whitfield (KY) Brady (TX) Giffords McCaul (TX) Sherman Tiberi Wilson (NM) ANSWERED ‘‘PRESENT’’—6 Braley (IA) Gilchrest McCollum (MN) Shimkus Tierney Wilson (OH) Gilchrest Lungren, Daniel Rohrabacher Broun (GA) Gillibrand McCotter Shuler Towns Wilson (SC) Hulshof E. Brown (SC) Gingrey McHenry Shuster Tsongas Wittman (VA) LaTourette Pence Brown, Corrine Gohmert McHugh Simpson Turner Wolf Brown-Waite, Goode McIntyre Sires Udall (CO) Wu NOT VOTING—15 Ginny Goodlatte McKeon Skelton Udall (NM) Wynn Bachus Hunter Pickering Buchanan Gordon McMorris Slaughter Upton Yarmuth Boehner Loebsack Platts Burgess Granger Rodgers Smith (NE) Van Hollen Young (AK) Bordallo McCarthy (NY) Richardson Burton (IN) Graves McNerney Smith (NJ) Vela´ zquez Young (FL) Butterfield Green, Al McNulty Campbell (CA) Miller, George Rush NOES—33 Cohen Paul Wu Buyer Green, Gene Meek (FL) Calvert Hall (NY) Meeks (NY) Baca Hirono Ros-Lehtinen b 1121 Camp (MI) Hall (TX) Melancon Baldwin Honda Sa´ nchez, Linda Cannon Hare Mica Clarke Johnson (GA) T. Mr. ISSA changed his vote from Cantor Harman Michaud Crowley Kucinich Sanchez, Loretta ‘‘aye’’ to ‘‘no.’’ Capito Hastings (FL) Miller (FL) Diaz-Balart, L. Lee Schakowsky Capps Hastings (WA) Miller (MI) Diaz-Balart, M. McDermott Serrano So the decision of the Chair stands as Capuano Hayes Miller (NC) Ellison McGovern Solis the judgment of the Committee. Cardoza Heller Miller, Gary Farr Moore (WI) Stark Carnahan Hensarling Mitchell Filner Moran (VA) The result of the vote was announced Sutton Carney Herger Mollohan Gonzalez Napolitano as above recorded. Woolsey Carson Herseth Sandlin Moore (KS) Grijalva Olver AMENDMENT NO. 7 OFFERED BY MR. ALTMIRE Carter Higgins Moran (KS) Gutierrez Pastor The Acting CHAIRMAN. The unfin- Castle Hill Murphy (CT) NOT VOTING—14 ished business is the demand for a re- Castor Hinchey Murphy, Patrick Cazayoux Hinojosa Murphy, Tim Baird Jackson-Lee Miller, George corded vote on the amendment offered Chabot Hobson Murtha Bordallo (TX) Pickering by the gentleman from Pennsylvania Chandler Hodes Musgrave Campbell (CA) Loebsack Richardson (Mr. ALTMIRE) on which further pro- Christensen Hoekstra Myrick Cohen McCarthy (NY) Rush Clay Holden Nadler Cummings McCrery Welch (VT) ceedings were postponed and on which Cleaver Holt Neal (MA) the ayes prevailed by voice vote. Clyburn Hooley Neugebauer ANNOUNCEMENT BY THE ACTING CHAIRMAN The Clerk will redesignate the Coble Hoyer Norton The Acting CHAIRMAN (during the Cole (OK) Hulshof Nunes amendment. Conaway Hunter Oberstar vote). Members have less than 1 minute The text of the amendment is as fol- Conyers Inglis (SC) Obey remaining to vote. lows: Cooper Inslee Ortiz Costa Israel Pallone b 1130 Amendment No. 7 offered by Mr. ALTMIRE: Costello Issa Pascrell Mr. ELLISON changed his vote from Page 36, after line 2, insert the following Courtney Jackson (IL) Paul new section: Cramer Jefferson Payne ‘‘aye’’ to ‘‘no.’’ SEC. 15. INELIGIBLITY OF ILLEGAL ALIENS FOR Crenshaw Johnson (IL) Pearce So the amendment was agreed to. ASSISTANCE. Cubin Johnson, E. B. Pence The result of the vote was announced Aliens who are not lawfully present in the Cuellar Johnson, Sam Perlmutter Culberson Jones (NC) Peterson (MN) as above recorded. United States shall be ineligible for financial Davis (AL) Jones (OH) Peterson (PA) PERSONAL EXPLANATION assistance under this Act, as provided and Davis (CA) Jordan Petri Mr. MCCARTHY of New York. Mr. Chair- defined by section 214 of the Housing and Davis (IL) Kagen Pitts Community Development Act of 1980 (42 Davis (KY) Kanjorski Platts man, earlier today I was questioning witnesses U.S.C. 1436a). Nothing in this Act shall be Davis, David Kaptur Poe on the arts and humanities as Chairwoman of construed to alter the restrictions or defini- Davis, Lincoln Keller Pomeroy the Healthy Families and Communities Sub- tions in such section 214. Davis, Tom Kennedy Porter Deal (GA) Kildee Price (GA) committee of the Education and Labor Com- Page 36, line 3, strike ‘‘15’’ and insert ‘‘16’’. DeFazio Kilpatrick Price (NC) mittee. I missed two votes. I would like the RECORDED VOTE DeGette Kind Pryce (OH) RECORD to reflect how I would have voted had Delahunt King (IA) Putnam I been able to get to the floor in time. The Acting CHAIRMAN. A recorded DeLauro King (NY) Radanovich vote has been demanded. Dent Kingston Rahall Rollcall No. 296 on sustaining the ruling of A recorded vote was ordered. Dicks Kirk Ramstad the chair, I would have voted ‘‘aye.’’ Dingell Klein (FL) Rangel Rollcall No. 297 on the Altmire amendment The Acting CHAIRMAN. This will be Doggett Kline (MN) Regula a 5-minute vote. Donnelly Knollenberg Rehberg to H.R. 5818, I would have voted ‘‘aye.’’ The vote was taken by electronic de- Doolittle Kuhl (NY) Reichert PERSONAL EXPLANATION vice, and there were—ayes 391, noes 33, Doyle LaHood Renzi Ms. BORDALLO. Mr. Chairman, I was un- Drake Lamborn Reyes not voting 14, as follows: Dreier Lampson Reynolds avoidable detained in a meeting earlier today, [Roll No. 297] Duncan Langevin Rodriguez May 8, 2008, in the other body regarding leg- Edwards Larsen (WA) Rogers (AL) islation I have sponsored, and, therefore, was AYES—391 Ehlers Larson (CT) Rogers (KY) Abercrombie Andrews Barton (TX) Ellsworth Latham Rogers (MI) absent from the Chamber when rollcall votes Ackerman Arcuri Bean Emanuel LaTourette Rohrabacher 296 and 297 were taken. Had I been present Aderholt Bachmann Becerra Emerson Latta Roskam for these two votes taken in the Committee of Akin Bachus Berkley Engel Levin Ross the Whole House on the state of the Union, I Alexander Barrett (SC) Berman English (PA) Lewis (CA) Rothman Allen Barrow Berry Eshoo Lewis (GA) Roybal-Allard would have voted as follows: ‘‘aye’’ to sustain Altmire Bartlett (MD) Biggert Etheridge Lewis (KY) Royce the ruling of the Chair (rollcall vote 296) and

VerDate Mar 15 2010 15:08 Nov 08, 2010 Jkt 069102 PO 00000 Frm 00006 Fmt 0688 Sfmt 9920 E:\BR08\H08MY8.000 H08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD 8150 CONGRESSIONAL RECORD—HOUSE, Vol. 154, Pt. 6 May 8, 2008 ‘‘aye’’ on the amendment offered by Mr. land, but there are concentrations in commu- and Urban Development, for States to buy ALTMIRE of Pennsylvania to H.R. 5818 (rollcall nities in my district where the real estate mar- and, rehabilitate foreclosed and vacated hous- vote 297). ket has completely collapsed. ing properties in order to resell or rent them Mr. DINGELL. Mr. Chairman, this legislation I support this housing package because it out. represents a fair, commonsense solution that will greatly assist my constituents in Cleveland While I have some reservations about the will give assistance to communities struggling as well as thousands of Americans across the balance in this bill between loans and grants, to deal with the problem of vacant homes, country by helping families stay in their homes I think the potential threat to the value of help stabilize the housing market, and help while they repay their mortgage debt. This leg- American homes and the safety of our com- low income families obtain a home they can islation will also help avoid the decreased munities justifies the overall cost. Studies have afford and be proud of. property values and increased crime rates that shown that home foreclosures adversely affect The Neighborhood Stabilization Act will often come with concentrations of foreclosed the value of other homes in the same neigh- make available to communities throughout the and abandoned properties. borhood, and the rate of home foreclosures in Nation $15 billion in new zero interest loans I wish to thank Chairman RANGEL and Rank- a neighborhood directly corresponds to a and grants for the purchase and rehabilitation ing Member MCCRERY as well as Chairman spike in crime in that neighborhood. In many of foreclosed properties. State and local gov- FRANK and Subcommittee Chair WATERS for cases, foreclosed and vacated homes have ernments have been hit hard by the fore- their work on these important pieces of legisla- become the dens of vagrants, drug addicts closure crisis not only because they have tion. I am extremely pleased that sections of and drug dealers. been stuck with the bill for maintaining and se- H.R. 1043, the Community Restoration and H.R. 5818 attempts to reduce the likelihood of these problems by helping States buy and curing vacant homes, but also because they Revitalization Act, a piece of legislation I have refurbish foreclosed and vacated housing face decreased property tax revenues. Not introduced for the past two Congresses, was properties to make them an appealing choice only are these properties off the tax rolls, but incorporated into the housing legislation before for qualified families to buy or rent. In addition, empty houses drive down the value of other us today. this legislation includes provisions to protect homes in the neighborhood which further de- This bill simplifies the Federal Historic Re- against housing speculator abuse by requiring creases tax revenues. habilitation Tax Credit, ‘‘Rehab Credit’’ thereby that homes purchased and refurbished by a Just as important, this bill will get these making it easier to utilize the credit for revital- State be resold to families whose income does homes occupied by families who truly need izing our nation’s older neighborhoods, har- not exceed 140 percent of the area median in- them. A priority will be given to low income nessing greater housing potential in underuti- come. This bill offers further targeted assist- families, families who have lost a home lized historic and older buildings, and focusing ance for those Americans who need it most by through foreclosure, as well as first respond- more private sector investment in smaller, requiring that half of the bill’s grant money be ers, veterans, public school teachers, and ‘‘main street’’ oriented commercial structures. dedicated to housing families at or below 50 homeless persons. The language in the bill that explicitly refers percent area median income. This measure will bring almost $600 million to the ‘‘historic nature’’ of development Finally, H.R. 5818 will direct funds to the in assistance to the State of Michigan at a projects is important because, for the first States with the greatest need. Under this bill, time when it is badly needed. Michigan has time, it directs state housing agencies to cre- each State’s loan and grant authority would be been particularly hard hit by the President’s ate a priority within their qualified allocation based on the State’s percentage of nationwide misguided economic policies, most especially plans for historic properties that can be con- foreclosures reported during the previous four his failure to address the foreclosure crisis. I verted to affordable housing through the use calendar quarters. This is a significant point sincerely hope that the President, who ap- of both the Low-Income Housing Tax Credit for my home State of Colorado, which has proved a $30 billion bailout for the investment and the Federal historic tax credit. consistently ranked among the top 10 States bank Bear Steams, will see to it to sign and Additionally, the bill simplifies the rules for in percentage of foreclosures. implement this bill which will provide much nonprofit and government agencies who spon- Mr. Chairman, this bill is a good measure needed assistance to State and local govern- sor or rent space in historic tax credit projects that deserves our support. As I previously stat- ments. and significantly lowers the cost of these ed, the benefits of this legislation outweigh my Mrs. JONES of Ohio. Mr. Chairman, I rise transactions. concerns over its cost, and I urge my col- today in support of this housing package be- In addition to simplifying the Rehab Tax leagues to join me in supporting it. cause it is imperative that Congress take ac- Credit, the bill would also facilitate coordina- The Acting CHAIRMAN. The ques- tion to assist homeowners struggling today. tion of the credit with the Low-Income Housing tion is on the committee amendment The epidemic of home losses in this country is Tax Credit by exempting both credits from the in the nature of a substitute, as amend- severe, with the impact not only causing harm restrictions of the AMT rules. ed. to the families who lose their homes, but also Since its inception, the rehab credit has The committee amendment in the affecting nearby homeowners who suffer been responsible for 133 residential and com- nature of a substitute, as amended, was drops in their property values and commu- mercial projects in the city of Cleveland, agreed to. The Acting CHAIRMAN. Under the nities who suffer the impact of lower tax reve- leveraging about $760 million of private invest- rule, the Committee rises. nues. ment. Because of the credit, downtown Cleve- Accordingly, the Committee rose; Nationally, the number of seriously delin- land and neighborhoods like the Warehouse and the Speaker pro tempore (Mr. quent loans and new foreclosures in January District, the Gateway District, and East Fourth WEINER) having assumed the chair, Mr. and February of this year was over 2.1 million, Street are being revitalized—pumping more in- MCNULTY, Acting Chairman of the an increase of 8 percent over the previous vestment into the region and revenue to the Committee of the Whole House on the quarter and a 55 percent increase from a year city and State. This legislation is crucial to fur- state of the Union, reported that that earlier. thering the economic development of Cleve- Committee, having had under consider- The housing crisis has severely impacted land and the State of Ohio. ation the bill (H.R. 5818) to authorize my congressional district, particularly the city My hope is that as we move forward we the Secretary of Housing and Urban of Cleveland, Ohio. Cleveland’s weak housing shall have the other important parts of H.R. Development to make loans to States market coupled with a housing over-supply 1043 enacted, as well as further simplification to acquire foreclosed housing and to has created a large number of foreclosures and clarification of the regulations regarding make grants to States for related and abandoned properties. As of December nonprofit and government use of historic build- costs, pursuant to House Resolution 2007, the number of properties in Cleveland ings rehabilitated with the help of the Federal 1174, reported the bill back to the identified as abandoned, nuisance properties historic tax credit. House with an amendment adopted by was 8,588. According to the Cleveland Depart- I urge my colleagues to support the pas- the Committee of the Whole. ment of Community Development, the esti- sage of this housing package. The SPEAKER pro tempore. Under mated number of homes entering the tax fore- Mr. UDALL of Colorado. Mr. Chairman, I the rule, the previous question is or- closure pool in 2008 was 1,000—with 900 rise in support of H.R. 5818, the Neighbor- dered. homes within this pool requiring public demoli- hood Stabilization Act of 2008. This bill would Is a separate vote demanded on any tion. These abandoned and foreclosed prop- provide $15 billion in loans and grants, admin- amendment to the amendment re- erties exist in every neighborhood in Cleve- istered by the U.S. Department of Housing ported from the Committee of the

VerDate Mar 15 2010 15:08 Nov 08, 2010 Jkt 069102 PO 00000 Frm 00007 Fmt 0688 Sfmt 0634 E:\BR08\H08MY8.000 H08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD May 8, 2008 CONGRESSIONAL RECORD—HOUSE, Vol. 154, Pt. 6 8151 Whole? If not, the question is on the dividual has been convicted under Federal or safety officers such as firemen and po- amendment. State law of a drug-dealing offense, a sex of- lice with a preference in purchasing The amendment was agreed to. fense, or mortgage fraud. homes made available under this bill. The SPEAKER pro tempore. The The SPEAKER pro tempore. The gen- The chairman of the committee quite question is on the engrossment and tleman from Arizona is recognized for 5 appropriately accepted that amend- third reading of the bill. minutes. ment. But we can do better than that. The bill was ordered to be engrossed Mr. SHADEGG. Mr. Speaker, this This motion to recommit takes that and read a third time, and was read the legislation is flawed in many respects. concept one step further. It provides third time. It provides $7.5 billion in loans to cit- that disabled American veterans are to MOTION TO RECOMMIT OFFERED BY MR. ies, States, and nonprofits to buy fore- be accorded an even higher preference SHADEGG closed homes from mortgage lenders in acquiring homes under this legisla- Mr. SHADEGG. Mr. Speaker, I have a who made bad loans. That will not help tion. motion at the desk. people avoid foreclosures. In addition, Mr. Speaker, every Member in this The SPEAKER pro tempore. Is the it provides $7.5 billion in grants to re- body is aware tragically that American gentleman opposed to the bill? habilitate those homes. As such, it is a soldiers are returning with horrific Mr. SHADEGG. I am in its present giveaway to the mortgage industry wounds. Like many of you, I have been form. that made bad loans. to Landstuhl Hospital in Germany and The SPEAKER pro tempore. The Nonetheless, Mr. Speaker, this mo- visited our fighting men and women. I Clerk will report the motion to recom- tion to recommit is a genuine attempt have been to Walter Reed Army Hos- mit. to improve this bill. If the majority in- pital and visited them. It is wonderful The Clerk read as follows: sists on going down this path, the least that we can save their lives, but this we can do is to give those who have Mr. Shadegg moves to recommit the bill motion to recommit recognizes and re- H.R. 5818 to the Committee on Financial served our Nation the highest priority wards their sacrifices. It provides that Services with instructions to report the in receiving housing assistance under disabled veterans, seeking to purchase same back to the House promptly in the this legislation, and to make sure that a home made available under this leg- form to which it may be perfected at the those who have preyed upon our soci- islation, must be given first preference. time of this motion with the following ety as criminals are not helped by the Mr. Speaker, these are commonsense amendments: legislation. changes to this bill that will improve Page 6, line 3, before ‘‘provide’’ insert In its present form, the bill allows it, and I urge my colleagues to adopt ‘‘subject to any preferences as may be spe- homes acquired and rehabilitated with cifically set forth in this subsection with re- them by passing this motion to recom- spect to amounts for housing rehabilitation taxpayer money to be purchased by mit. and to the preferences required under the convicted drug dealers, convicted sex I yield back the balance of my time. last two paragraphs of this subsection,’’. offenders, and people who have been Mr. FRANK of Massachusetts. Mr. Page 6, line 15, strike ‘‘for veterans,’’. convicted of mortgage fraud. Speaker, I rise to speak in opposition Page 6, strike ‘‘or providing’’ in line 18 and Last night our colleague, Mr. to the motion to recommit. all that follows through ‘‘located’’ in line 20 ALTMIRE, offered an amendment that The SPEAKER pro tempore. The gen- and insert the following: ‘‘except that pref- prohibits homes made available for tleman is recognized for 5 minutes. erences established pursuant to this para- sale under this bill, acquired and reha- Mr. FRANK of Massachusetts. Mr. graph shall be subordinate to any pref- erences as may be specifically set forth in bilitated with taxpayer dollars, from Speaker, I hope we are here seriously this subsection with respect to amounts for being sold to illegal immigrants. That to legislate. The effect of adopting this housing rehabilitation and to the preferences was a good amendment and I am glad will be to make it much less likely required under the last two paragraphs of to see that the House just now over- that veterans will get the preference. this subsection’’. whelmingly adopted it. Now I understand the frustration of Page 6, line 24, strike ‘‘and’’. In advocating for his amendment, Members on the other side. The gen- Page 7, line 5, strike the period and insert Mr. ALTMIRE said that homes made tleman from Michigan (Mr. MCCOTTER) a semicolon. available through this bill should be offered an amendment yesterday, not- Page 7, after line 5, insert the following: (14) subject only to any preferences as may available only to law abiding U.S. citi- withstanding any other preferences, be specifically set forth in this subsection zens. first priority to veterans, members of with respect to amounts for housing reha- My colleagues, Mr. ALTMIRE is right. the Armed Forces on active duty, bilitation and to the last paragraph of this This motion to recommit brings the members of the National Guard or subsection and notwithstanding any other same commonsense to this bill that Armed Forces reserves, school teachers preferences established or authorized by this Mr. ALTMIRE’s amendment did. It sim- and emergency responders. That is now subsection, provide priority preference, in ply says that homes made available in the bill. That is part of the bill. use of amounts from grants or loans under under the bill cannot be sold to drug The gentleman phrased his motion as this Act, for providing housing for veterans ‘‘promptly.’’ Now we have already seen and for teachers or workforce (including law dealers, sex offenders, or people con- enforcement officers, firefighters, and other victed of mortgage fraud. the kind of delay tactics that the mi- first responders) who are employed by the I ask my colleagues, imagine how nority has been prone to use. Send this city or locality in which the housing is lo- you would feel if your taxes were taken back to committee, and you are very cated; and under this legislation and used by the unlikely to get it back on the floor in (15) provide that in carrying out any other government to purchase foreclosed a way in which we can pass it. So last provision of this subsection that provides homes, then to rehabilitate a fore- night we adopted preference for vet- preference, in the use of amounts from closed home in your neighborhood, and erans. Today, in the guise of redoing grants or loans under this Act (or any por- then if that house was put on the mar- what we have already done, a motion is tion of such amounts), for providing housing for veterans and other classes, highest pref- ket and sold by the government to a offered that will keep veterans from erence shall be provided for providing hous- convicted drug dealer, a convicted sex benefiting from that preference be- ing for disabled veterans, and then pref- offender, or person guilty of fraud in cause the bill won’t go anywhere. erence shall be given to providing housing the mortgage industry who contributed The gentleman was honest. He began for other veterans and such other classes; to the very housing turmoil we are now by saying he doesn’t like this bill. And and faced with. You would be outraged, and since a head-on assault will not pass— Page 27, after line 16, insert the following: you should be. We cannot let that hap- no, I will not yield. I will explain why (k) LIMITATION ON RESIDENCY.—No indi- pen under this legislation. I won’t yield. I won’t yield because I vidual may purchase or lease any qualified foreclosed housing that was acquired using The second provision of the motion have consistently, when I was chairing any amounts provided under a grant or loan to recommit corrects another defect in the committee, been open to amend- under this Act, or any dwelling unit in any the bill. Yesterday an amendment was ments. I have yielded. But when at the such qualified foreclosed housing, if such in- offered to provide veterans and public last minute with zero notice something

VerDate Mar 15 2010 15:08 Nov 08, 2010 Jkt 069102 PO 00000 Frm 00008 Fmt 0688 Sfmt 0634 E:\BR08\H08MY8.000 H08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD 8152 CONGRESSIONAL RECORD—HOUSE, Vol. 154, Pt. 6 May 8, 2008 is drafted with no chance to discuss it, cause people didn’t like the wording on Mr. WESTMORELAND. Parliamen- and they use their full 5 minutes, of the board, you tell me if you think we tary inquiry, Mr. Speaker. course I won’t give up the small are going to get serious legislative ef- The SPEAKER pro tempore. The gen- amount of time we have. It is already forts. tleman from Georgia will state his par- inadequate to discuss this. b 1145 liamentary inquiry. So this will prevent the veterans Mr. WESTMORELAND. Mr. Speaker, from getting the preferences they al- So, yeah, I want veterans preferences isn’t it true if you have 218 votes you ready have. You have seen what can in the bill. Going forward, we can ad- can do just about anything you want to happen with these delays. We have dress this. But Members who are wor- in this House? preference for veterans in this bill. ried about some kind of ad long before The SPEAKER pro tempore. The gen- Now let me say procedurally, if this your election, the sensible parts of this tleman has not stated a proper par- had said ‘‘forthwith,’’ I would have will be embodied in the bill. You will liamentary inquiry. have a chance to vote to protect been less concerned about it. But there Without objection, the previous ques- against mortgage fraud, et cetera. But is also this: during the markup of this tion is ordered on the motion to recom- vote for this today. bill, we accepted nine Republican mit. And as the gentleman from Arizona amendments. Yesterday we accepted There was no objection. made clear, he doesn’t like the bill. several Republican amendments. If I The SPEAKER pro tempore. The was seriously interested in helping the And I understand the problem the President has. The administration question is on the motion to recommit. people who are to be the beneficiaries, The question was taken; and the I would have offered an amendment at can’t decide whether it wants to sign or veto. There are internal debates, so Speaker pro tempore announced that the Rules Committee, and we would the noes appeared to have it. have accepted it. I would not have it falls to our Republican colleagues to waited to say ‘‘promptly’’ so that I save this President from having to RECORDED VOTE would have used the disabled veterans make the decision. Mr. SHADEGG. Mr. Speaker, I de- as a way to kill the bill. I urge my colleagues not to fall for mand a recorded vote. Similarly, with regard to mortgage that partisan ploy. Vote down this ef- A recorded vote was ordered. fraud—and by the way, this is through fort to delay, and perhaps delay indefi- The SPEAKER pro tempore. Pursu- the cities. If you think that the cities nitely this bill. We will, going forward, ant to clause 8 and clause 9 of rule XX, are going to give out money to rapists, take the good parts of it and incor- this 15-minute vote on the motion to worry about it. porate it. Had they been substantially recommit will be followed by 5-minute I would be prepared, if this would offered seriously before, they would votes on passage of the bill, and motion have been put forward in an orderly have been adopted. to suspend the rules on H.R. 4279. way so we could vet it and not have un- Please, let’s not fall for a partisan The vote was taken by electronic de- intended consequences as we did with ploy and kill a good bill. vice, and there were—ayes 210, noes 216, the last recommit on a bill from our PARLIAMENTARY INQUIRIES not voting 7, as follows: committee, we could have accepted it. Mr. WESTMORELAND. Parliamen- [Roll No. 298] As we go forward, and let me say fur- tary inquiry. AYES—210 ther in conference with the Senate, The SPEAKER pro tempore (Mr. Aderholt Deal (GA) Issa yes, I think we ought to make it ex- WEINER). State your parliamentary in- Akin Dent Johnson (IL) plicit that people with mortgage fraud quiry. Alexander Diaz-Balart, L. Johnson, Sam don’t get it, as well as certain kinds of Mr. WESTMORELAND. Mr. Speaker, Bachmann Diaz-Balart, M. Jordan Bachus Donnelly Keller sex offenders. Yes, I think we can do isn’t it true that if this motion passed, Barrett (SC) Doolittle King (IA) these things, and we will do them going that it would be referred back to the Barrow Drake King (NY) forward. committee from whence it came, and Bartlett (MD) Dreier Kingston But to take it now with a ‘‘prompt- Barton (TX) Duncan Kirk that it could be reported back the next Biggert Ehlers Kline (MN) ly,’’ designed to kill the bill, and it will legislative day? Bilbray Ellsworth Knollenberg in fact undo, take back the veterans’ The SPEAKER pro tempore. As the Bilirakis Emerson Kuhl (NY) preferences we gave yesterday, and to Chair reaffirmed on November 15, 2007, Bishop (UT) English (PA) LaHood Blackburn Everett Lamborn use disabled veterans and to use con- at some subsequent time, the com- Blunt Fallin Lampson cern for the law as a cover to kill a bill mittee could meet and report the bill Boehner Feeney Latham for which the votes do not exist to kill back to the House. Bonner Ferguson LaTourette it is the wrong way to go. Mr. FRANK of Massachusetts. Mr. Bono Mack Flake Latta Boozman Forbes Lewis (CA) We have amended this bill. Nine Speaker, parliamentary inquiry. Boustany Fortenberry Lewis (KY) amendments were accepted in com- The SPEAKER pro tempore. The gen- Brady (TX) Fossella Linder mittee. None of these were offered. Had tleman will state his parliamentary in- Broun (GA) Foxx LoBiondo Brown (SC) Franks (AZ) Lucas they been, they would have substan- quiry. Brown-Waite, Frelinghuysen Lungren, Daniel tially been accepted, and they can be Mr. FRANK of Massachusetts. The Ginny Gallegly E. accepted going forward. But you have committee and the House are con- Buchanan Garrett (NJ) Mack seen, my colleagues, what has gone on strained by a number of rules that Burgess Gerlach Manzullo Burton (IN) Giffords Marchant here. Send this back to committee, we cause substantial numbers of days to Buyer Gilchrest Marshall have to go back to committee. We have elapse. Does this motion, if it passes, in Calvert Gillibrand McCarthy (CA) rules to deal with. You have a crowded any way empower us to forget those Camp (MI) Gingrey McCaul (TX) Cannon Gohmert McCotter agenda in the committee. You will not rules of the House which require a cer- Cantor Goode McCrery see this bill again probably for weeks, tain number of days in committee, cer- Capito Goodlatte McHenry and we will again have these tactics. tain number of layovers, an announce- Carney Granger McHugh The gentleman from Georgia is going ment of a markup, a delay before the Carter Graves McIntyre Castle Hall (TX) McKeon to raise the point that it can come out bill is reported, the Rules Committee, Cazayoux Hastings (WA) McMorris the next day. It cannot. The rules of et cetera? Does this motion in any way Chabot Hayes Rodgers the House do not allow it. And anyone reduce any of those timetables? Coble Heller McNerney Cole (OK) Hensarling Mica who thinks you are going to get unani- The SPEAKER pro tempore. As the Conaway Herger Miller (FL) mous consent from this group to waive Chair stated on November 15, 2007, an Crenshaw Hill Miller (MI) four and five rules is not paying atten- order of recommital does not nec- Cubin Hobson Miller, Gary tion. After we just had two votes on an essarily waive any rules, but the Chair Culberson Hoekstra Mitchell Davis (KY) Hulshof Moran (KS) appeal of a ruling, a frivolous appeal, cannot render an advisory opinion on Davis, David Hunter Murphy, Patrick and we get an appeal of the appeal be- what points of order might lie. Davis, Tom Inglis (SC) Murphy, Tim

VerDate Mar 15 2010 15:08 Nov 08, 2010 Jkt 069102 PO 00000 Frm 00009 Fmt 0688 Sfmt 0634 E:\BR08\H08MY8.000 H08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD May 8, 2008 CONGRESSIONAL RECORD—HOUSE, Vol. 154, Pt. 6 8153 Musgrave Rogers (AL) Stearns Waxman Wexler Wu Moore (KS) Roybal-Allard Tanner Myrick Rogers (KY) Sullivan Weiner Wilson (OH) Wynn Moore (WI) Ruppersberger Tauscher Neugebauer Rogers (MI) Tancredo Welch (VT) Woolsey Yarmuth Moran (VA) Ryan (OH) Taylor Nunes Rohrabacher Terry Murphy (CT) Salazar NOT VOTING—7 Thompson (CA) Pearce Ros-Lehtinen Thornberry Murphy, Patrick Sa´ nchez, Linda Thompson (MS) Pence Roskam Tiahrt Campbell (CA) Jones (NC) Rush Murtha T. Tierney Peterson (PA) Royce Tiberi Cohen Loebsack Nadler Sanchez, Loretta Towns Petri Ryan (WI) Turner Gutierrez Richardson Napolitano Sarbanes Tsongas Pickering Sali Upton Neal (MA) Schakowsky ANNOUNCEMENT BY THE SPEAKER PRO TEMPORE Turner Pitts Saxton Walberg Oberstar Schiff Udall (CO) Schwartz Platts Scalise Walden (OR) The SPEAKER pro tempore (during Obey Udall (NM) Poe Schmidt Walsh (NY) Olver Scott (GA) the vote). Members have 2 minutes re- Van Hollen Porter Sensenbrenner Wamp Ortiz Scott (VA) Vela´ zquez Price (GA) Sessions Weldon (FL) maining to cast their votes. Pallone Serrano Visclosky Pryce (OH) Shadegg Weller Pascrell Sestak Walsh (NY) Putnam Shays Westmoreland b 1206 Pastor Shays Walz (MN) Radanovich Shimkus Whitfield (KY) Payne Shea-Porter Wasserman Ramstad Shuster Wilson (NM) Messrs. KINGSTON and PICKERING Perlmutter Sherman Schultz Regula Simpson Wilson (SC) changed their vote from ‘‘no’’ to ‘‘aye.’’ Peterson (MN) Shuler Waters Rehberg Smith (NE) Wittman (VA) So the motion to recommit was re- Pomeroy Sires Reichert Smith (NJ) Wolf Porter Skelton Watson Renzi Smith (TX) Young (AK) jected. Price (NC) Slaughter Watt Reynolds Souder Young (FL) The result of the vote was announced Pryce (OH) Smith (WA) Waxman as above recorded. Rahall Snyder Weiner NOES—216 The SPEAKER pro tempore. The Ramstad Solis Welch (VT) Rangel Space Wexler Abercrombie Gordon Napolitano question is on the passage of the bill. Reyes Speier Wilson (OH) Ackerman Green, Al Neal (MA) The question was taken; and the Rodriguez Spratt Woolsey Allen Green, Gene Oberstar Ros-Lehtinen Stark Wu Altmire Grijalva Obey Speaker pro tempore announced that the ayes appeared to have it. Ross Stupak Wynn Andrews Hall (NY) Olver Rothman Sutton Yarmuth Arcuri Hare Ortiz RECORDED VOTE Baca Harman Pallone NOES—188 Baird Hastings (FL) Pascrell Mr. HENSARLING. Mr. Speaker, I Baldwin Herseth Sandlin Pastor demand a recorded vote. Aderholt Foxx Miller (MI) Bean Higgins Paul A recorded vote was ordered. Akin Franks (AZ) Miller, Gary Becerra Hinchey Payne The SPEAKER pro tempore. This Alexander Frelinghuysen Moran (KS) Berkley Hinojosa Perlmutter Bachmann Gallegly Murphy, Tim Berman Hirono Peterson (MN) will be a 5-minute vote. Bachus Garrett (NJ) Musgrave Berry Hodes Pomeroy The vote was taken by electronic de- Barrett (SC) Gerlach Myrick Bishop (GA) Holden Price (NC) vice, and there were—ayes 239, noes 188, Bartlett (MD) Gillibrand Neugebauer Bishop (NY) Holt Rahall Barton (TX) Gingrey not voting 6, as follows: Nunes Blumenauer Honda Rangel Biggert Gohmert Paul Boren Hooley Reyes [Roll No. 299] Bilbray Goode Pearce Boswell Hoyer Rodriguez Bilirakis Goodlatte AYES—239 Pence Boucher Inslee Ross Bishop (UT) Granger Peterson (PA) Boyd (FL) Israel Rothman Abercrombie Davis (CA) Israel Blackburn Graves Petri Boyda (KS) Jackson (IL) Roybal-Allard Ackerman Davis (IL) Jackson (IL) Blunt Hall (TX) Pickering Brady (PA) Jackson-Lee Ruppersberger Allen Davis, Lincoln Jackson-Lee Boehner Hastings (WA) Pitts Braley (IA) (TX) Ryan (OH) Altmire DeFazio (TX) Bonner Hayes Platts Brown, Corrine Jefferson Salazar Andrews DeGette Jefferson Bono Mack Heller Poe ´ Butterfield Johnson (GA) Sanchez, Linda Arcuri Delahunt Johnson (GA) Boozman Hensarling Price (GA) Capps Johnson, E. B. T. Baca DeLauro Johnson, E. B. Boustany Herger Putnam Capuano Jones (OH) Sanchez, Loretta Baird Diaz-Balart, L. Jones (OH) Brady (TX) Hobson Radanovich Cardoza Kagen Baldwin Diaz-Balart, M. Kagen Broun (GA) Hoekstra Sarbanes Regula Carnahan Kanjorski Schakowsky Barrow Dicks Kanjorski Brown (SC) Hulshof Rehberg Carson Kaptur Schiff Bean Dingell Kaptur Brown-Waite, Hunter Reichert Castor Kennedy Schwartz Becerra Doggett Kennedy Ginny Inglis (SC) Renzi Chandler Kildee Scott (GA) Berkley Donnelly Kildee Buchanan Issa Reynolds Clarke Kilpatrick Scott (VA) Berman Doyle Kilpatrick Burgess Johnson (IL) Rogers (AL) Clay Kind Serrano Berry Edwards Kind Burton (IN) Johnson, Sam Rogers (KY) Cleaver Klein (FL) Sestak Bishop (GA) Ellison Klein (FL) Buyer Jones (NC) Rogers (MI) Clyburn Kucinich Shea-Porter Bishop (NY) Ellsworth Kucinich Calvert Jordan Rohrabacher Conyers Langevin Sherman Blumenauer Emanuel Lampson Camp (MI) Keller Roskam Cooper Larsen (WA) Shuler Boren Engel Langevin Cannon King (IA) Royce Costa Larson (CT) Sires Boswell Eshoo Larsen (WA) Cantor King (NY) Costello Lee Skelton Boucher Etheridge Larson (CT) Capito Kingston Ryan (WI) Courtney Levin Slaughter Boyd (FL) Farr LaTourette Carter Kirk Sali Cramer Lewis (GA) Smith (WA) Boyda (KS) Fattah Lee Castle Kline (MN) Saxton Crowley Lipinski Snyder Brady (PA) Filner Levin Chabot Knollenberg Scalise Cuellar Lofgren, Zoe Solis Braley (IA) Foster Lewis (GA) Coble Kuhl (NY) Schmidt Cummings Lowey Space Brown, Corrine Frank (MA) Lipinski Cole (OK) LaHood Sensenbrenner Davis (AL) Lynch Speier Butterfield Giffords Lofgren, Zoe Conaway Lamborn Sessions Davis (CA) Mahoney (FL) Spratt Capps Gilchrest Lowey Crenshaw Latham Shadegg Davis (IL) Maloney (NY) Stark Capuano Gonzalez Lynch Cubin Latta Shimkus Davis, Lincoln Markey Stupak Cardoza Gordon Mahoney (FL) Culberson Lewis (CA) Shuster DeFazio Matheson Sutton Carnahan Green, Al Maloney (NY) Davis (KY) Lewis (KY) Simpson DeGette Matsui Tanner Carney Green, Gene Markey Davis, David Linder Smith (NE) Delahunt McCarthy (NY) Tauscher Carson Grijalva Marshall Davis, Tom LoBiondo Smith (NJ) DeLauro McCollum (MN) Taylor Castor Hall (NY) Matheson Deal (GA) Lucas Smith (TX) Dicks McDermott Thompson (CA) Cazayoux Hare Matsui Dent Lungren, Daniel Souder Dingell McGovern Thompson (MS) Chandler Harman McCarthy (NY) Doolittle E. Stearns Doggett McNulty Tierney Clarke Hastings (FL) McCollum (MN) Drake Mack Sullivan Doyle Meek (FL) Towns Clay Herseth Sandlin McDermott Dreier Manzullo Tancredo Edwards Meeks (NY) Tsongas Cleaver Higgins McGovern Duncan Marchant Terry Ellison Melancon Udall (CO) Clyburn Hill McIntyre Ehlers McCarthy (CA) Thornberry Emanuel Michaud Udall (NM) Conyers Hinchey McNerney Emerson McCaul (TX) Tiahrt Engel Miller (NC) Van Hollen Cooper Hinojosa McNulty English (PA) McCotter Tiberi Eshoo Miller, George Vela´ zquez Costa Hirono Meek (FL) Everett McCrery Upton Etheridge Mollohan Visclosky Costello Hodes Meeks (NY) Fallin McHenry Walberg Farr Moore (KS) Walz (MN) Courtney Holden Melancon Feeney McHugh Walden (OR) Fattah Moore (WI) Wasserman Cramer Holt Michaud Ferguson McKeon Wamp Filner Moran (VA) Schultz Crowley Honda Miller (NC) Flake McMorris Weldon (FL) Foster Murphy (CT) Waters Cuellar Hooley Miller, George Forbes Rodgers Weller Frank (MA) Murtha Watson Cummings Hoyer Mitchell Fortenberry Mica Westmoreland Gonzalez Nadler Watt Davis (AL) Inslee Mollohan Fossella Miller (FL) Whitfield (KY)

VerDate Mar 15 2010 15:08 Nov 08, 2010 Jkt 069102 PO 00000 Frm 00010 Fmt 0688 Sfmt 0634 E:\BR08\H08MY8.000 H08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD 8154 CONGRESSIONAL RECORD—HOUSE, Vol. 154, Pt. 6 May 8, 2008 Wilson (NM) Wittman (VA) Young (AK) DeFazio Kaptur Perlmutter Udall (NM) Wasserman Whitfield (KY) Wilson (SC) Wolf Young (FL) DeGette Keller Peterson (MN) Upton Schultz Wilson (NM) Delahunt Kennedy Peterson (PA) Van Hollen Waters Wilson (OH) NOT VOTING—6 DeLauro Kildee Petri Vela´ zquez Watson Wilson (SC) Campbell (CA) Gutierrez Richardson Dent Kilpatrick Pickering Visclosky Watt Wittman (VA) Cohen Loebsack Rush Diaz-Balart, L. Kind Pitts Walberg Waxman Wolf Diaz-Balart, M. King (IA) Platts Walden (OR) Weiner Woolsey ANNOUNCEMENT BY THE SPEAKER PRO TEMPORE Dicks King (NY) Pomeroy Walsh (NY) Welch (VT) Wu Dingell Kingston Porter Weldon (FL) Wynn The SPEAKER pro tempore (during Walz (MN) Doggett Kirk Price (GA) Weller Yarmuth Wamp the vote). Members are reminded there Donnelly Klein (FL) Price (NC) Wexler Young (FL) are 2 minutes remaining on this vote. Doyle Kline (MN) Pryce (OH) Drake Knollenberg Putnam NOES—11 b 1216 Dreier Kuhl (NY) Radanovich Boucher Kucinich Poe Edwards LaHood Rahall Doolittle Lofgren, Zoe Westmoreland Mr. KIRK changed his vote from Ehlers Lamborn Ramstad Duncan Moore (WI) Young (AK) ‘‘aye’’ to ‘‘no.’’ Ellison Lampson Rangel Flake Paul So the bill was passed. Ellsworth Langevin Regula Emanuel Larsen (WA) Rehberg NOT VOTING—12 The result of the vote was announced Emerson Larson (CT) Reichert Bachus Gilchrest Loebsack as above recorded. Engel Latham Renzi Campbell (CA) Gutierrez Lynch A motion to reconsider was laid on English (PA) LaTourette Reyes Capito Hastings (WA) Richardson Eshoo Latta Reynolds Cohen Herger Rush the table. Etheridge Lee Rodriguez Everett Levin Rogers (AL) ANNOUNCEMENT BY THE SPEAKER PRO TEMPORE f Fallin Lewis (CA) Rogers (KY) The SPEAKER pro tempore (during Farr Lewis (GA) Rogers (MI) PRIORITIZING RESOURCES AND Fattah Lewis (KY) Rohrabacher the vote). Members are reminded they ORGANIZATION FOR INTELLEC- Feeney Linder Ros-Lehtinen have 2 minutes remaining on this vote. TUAL PROPERTY ACT OF 2008 Ferguson Lipinski Roskam Filner LoBiondo Ross b 1222 The SPEAKER pro tempore. The un- Forbes Lowey Rothman So (two-thirds being in the affirma- finished business is the question on Fortenberry Lucas Roybal-Allard Fossella Lungren, Daniel Royce tive) the rules were suspended and the suspending the rules and passing the Foster E. Ruppersberger bill, as amended, was passed. bill, H.R. 4279, as amended. Foxx Mack Ryan (OH) The result of the vote was announced The Clerk read the title of the bill. Frank (MA) Mahoney (FL) Ryan (WI) Franks (AZ) Maloney (NY) Salazar as above recorded. The SPEAKER pro tempore. The Frelinghuysen Manzullo Sali A motion to reconsider was laid on question is on the motion offered by Gallegly Marchant Sa´ nchez, Linda the table. Garrett (NJ) Markey T. the gentleman from Michigan (Mr. f CONYERS) that the House suspend the Gerlach Marshall Sanchez, Loretta Giffords Matheson Sarbanes ANNOUNCEMENT BY THE SPEAKER rules and pass the bill, H.R. 4279, as Gillibrand Matsui Saxton amended. Gingrey McCarthy (CA) Scalise PRO TEMPORE The question was taken; and the Gohmert McCarthy (NY) Schakowsky The SPEAKER pro tempore (Mr. Gonzalez McCaul (TX) Schiff Speaker pro tempore announced that Goode McCollum (MN) Schmidt HOLDEN). Pursuant to clause 8 of rule the ayes appeared to have it. Goodlatte McCotter Schwartz XX, proceedings will resume on mo- RECORDED VOTE Gordon McCrery Scott (GA) tions to suspend the rules previously Granger McDermott Scott (VA) postponed. Mr. HINOJOSA. Mr. Speaker, I de- Graves McGovern Sensenbrenner mand a recorded vote. Green, Al McHenry Serrano Votes will be taken in the following A recorded vote was ordered. Green, Gene McHugh Sessions order: Grijalva McIntyre Sestak H. Res. 1086, de novo; The SPEAKER pro tempore. This Hall (NY) McKeon Shadegg will be a 5-minute vote. Hall (TX) McMorris Shays H.R. 5690, de novo; The vote was taken by electronic de- Hare Rodgers Shea-Porter H.R. 1512, de novo; vice, and there were—ayes 410, noes 11, Harman McNerney Sherman H.R. 5512, de novo. Hastings (FL) McNulty Shimkus not voting 12, as follows: Hayes Meek (FL) Shuler f [Roll No. 300] Heller Meeks (NY) Shuster NATIONAL NURSES WEEK Hensarling Melancon Simpson AYES—410 Herseth Sandlin Mica Sires The SPEAKER pro tempore. The un- Abercrombie Bonner Castle Higgins Michaud Skelton finished business is the question on Ackerman Bono Mack Castor Hill Miller (FL) Slaughter Aderholt Boozman Cazayoux Hinchey Miller (MI) Smith (NE) suspending the rules and agreeing to Akin Boren Chabot Hinojosa Miller (NC) Smith (NJ) the resolution, H. Res. 1086. Alexander Boswell Chandler Hirono Miller, Gary Smith (TX) The Clerk read the title of the resolu- Allen Boustany Clarke Hobson Miller, George Smith (WA) tion. Altmire Boyd (FL) Clay Hodes Mitchell Snyder Andrews Boyda (KS) Cleaver Hoekstra Mollohan Solis The SPEAKER pro tempore. The Arcuri Brady (PA) Clyburn Holden Moore (KS) Souder question is on the motion offered by Baca Brady (TX) Coble Holt Moran (KS) Space the gentleman from Texas (Mr. GENE Bachmann Braley (IA) Cole (OK) Honda Moran (VA) Speier Baird Broun (GA) Conaway Hooley Murphy (CT) Spratt GREEN) that the House suspend the Baldwin Brown (SC) Conyers Hoyer Murphy, Patrick Stark rules and agree to the resolution, H. Barrett (SC) Brown, Corrine Cooper Hulshof Murphy, Tim Stearns Res. 1086. Barrow Brown-Waite, Costa Hunter Murtha Stupak The question was taken; and (two- Bartlett (MD) Ginny Costello Inglis (SC) Musgrave Sullivan Barton (TX) Buchanan Courtney Inslee Myrick Sutton thirds being in the affirmative) the Bean Burgess Cramer Israel Nadler Tancredo rules were suspended and the resolu- Becerra Burton (IN) Crenshaw Issa Napolitano Tanner tion was agreed to. Berkley Butterfield Crowley Jackson (IL) Neal (MA) Tauscher Berman Buyer Cubin Jackson-Lee Neugebauer Taylor A motion to reconsider was laid on Berry Calvert Cuellar (TX) Nunes Terry the table. Biggert Camp (MI) Culberson Jefferson Oberstar Thompson (CA) f Bilbray Cannon Cummings Johnson (GA) Obey Thompson (MS) Bilirakis Cantor Davis (AL) Johnson (IL) Olver Thornberry AFRICAN NATIONAL CONGRESS Bishop (GA) Capps Davis (CA) Johnson, E. B. Ortiz Tiahrt EXEMPTION Bishop (NY) Capuano Davis (IL) Johnson, Sam Pallone Tiberi Bishop (UT) Cardoza Davis (KY) Jones (NC) Pascrell Tierney The SPEAKER pro tempore. The un- Blackburn Carnahan Davis, David Jones (OH) Pastor Towns finished business is the question on Blumenauer Carney Davis, Lincoln Jordan Payne Tsongas Blunt Carson Davis, Tom Kagen Pearce Turner suspending the rules and passing the Boehner Carter Deal (GA) Kanjorski Pence Udall (CO) bill, H.R. 5690, as amended.

VerDate Mar 15 2010 15:08 Nov 08, 2010 Jkt 069102 PO 00000 Frm 00011 Fmt 0688 Sfmt 0634 E:\BR08\H08MY8.000 H08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD May 8, 2008 CONGRESSIONAL RECORD—HOUSE, Vol. 154, Pt. 6 8155 The Clerk read the title of the bill. FORECLOSURE PREVENTION ACT Sec. 147. Technical corrections. The SPEAKER pro tempore. The OF 2008 Sec. 148. Revision of underwriting criteria. question is on the motion offered by Sec. 149. Prohibition against kickbacks and un- Mr. FRANK of Massachusetts. Mr. earned fees. the gentleman from Michigan (Mr. Speaker, pursuant to House Resolution Sec. 150. Leasehold requirements. CONYERS) that the House suspend the 1175, I call up the bill (H.R. 3221) mov- TITLE II—MORTGAGE FORECLOSURE rules and pass the bill, H.R. 5690, as ing the United States toward greater PROTECTIONS FOR SERVICEMEMBERS amended. energy independence and security, de- Sec. 201. Temporary increase in maximum loan The question was taken; and (two- veloping innovative new technologies, guaranty amount for certain thirds being in the affirmative) the reducing carbon emissions, creating housing loans guaranteed by the rules were suspended and the bill, as green jobs, protecting consumers, in- Secretary of Veterans Affairs. amended, was passed. creasing clean renewable energy pro- Sec. 202. Counseling on mortgage foreclosures The title was amended so as to read: duction, and modernizing our energy for members of the Armed Forces ‘‘A bill to remove the African National returning from service abroad. infrastructure, with the Senate amend- Sec. 203. Enhancement of protections for Congress from treatment as a terrorist ments thereto, and ask for its imme- organization for certain acts or events, servicemembers relating to mort- diate consideration in the House. gages and mortgage foreclosures. provide relief for certain members of The Clerk read the title of the bill. the African National Congress regard- TITLE III—EMERGENCY ASSISTANCE FOR The SPEAKER pro tempore. The THE REDEVELOPMENT OF ABANDONED ing admissibility, and for other pur- Clerk will designate the Senate amend- AND FORECLOSED HOMES poses.’’. ments. Sec. 301. Emergency assistance for the redevel- A motion to reconsider was laid on The text of the Senate amendments opment of abandoned and fore- the table. is as follows: closed homes. f Senate amendments: Sec. 302. Nationwide distribution of resources. Strike out all after the enacting clause and Sec. 303. Limitation on use of funds with re- PROVIDING FOR COMPENSATION insert: spect to eminent domain. Sec. 304. Limitation on distribution of funds. TO STATES INCARCERATING UN- SECTION 1. SHORT TITLE; TABLE OF CONTENTS. Sec. 305. Counseling intermediaries. DOCUMENTED ALIENS (a) SHORT TITLE.—This Act may be cited as the ‘‘Foreclosure Prevention Act of 2008’’. TITLE IV—HOUSING COUNSELING The SPEAKER pro tempore. The un- RESOURCES finished business is the question on (b) TABLE OF CONTENTS.—The table of con- tents for this Act is as follows: Sec. 401. Housing counseling resources. suspending the rules and passing the Sec. 402. Credit counseling. bill, H.R. 1512. Sec. 1. Short title; table of contents. TITLE I—FHA MODERNIZATION ACT OF TITLE V—MORTGAGE DISCLOSURE The Clerk read the title of the bill. IMPROVEMENT ACT The SPEAKER pro tempore. The 2008 Sec. 101. Short title. Sec. 501. Short title. question is on the motion offered by Sec. 502. Enhanced mortgage loan disclosures. the gentlewoman from California (Ms. Subtitle A—Building American Homeownership Sec. 503. Community Development Investment LINDA T. SA´ NCHEZ) that the House sus- Sec. 111. Short title. Authority for depository institu- pend the rules and pass the bill, H.R. Sec. 112. Maximum principal loan obligation. tions. 1512. Sec. 113. Cash investment requirement and pro- Sec. 504. Federal Home loan bank refinancing hibition of seller-funded down- authority for certain residential The question was taken; and (two- payment assistance. thirds being in the affirmative) the mortgage loans. Sec. 114. Mortgage insurance premiums. TITLE VI—TAX-RELATED PROVISIONS rules were suspended and the bill was Sec. 115. Rehabilitation loans. passed. Sec. 116. Discretionary action. Sec. 601. Election for 4-year carryback of cer- A motion to reconsider was laid on Sec. 117. Insurance of condominiums. tain net operating losses and tem- porary suspension of 90 percent the table. Sec. 118. Mutual Mortgage Insurance Fund. Sec. 119. Hawaiian home lands and Indian res- AMT limit. f ervations. Sec. 602. Modifications on use of qualified mort- Sec. 120. Conforming and technical amend- gage bonds; temporary increased COIN MODERNIZATION AND ments. volume cap for certain housing TAXPAYER SAVINGS ACT OF 2008 Sec. 121. Insurance of mortgages. bonds. Sec. 603. Credit for certain home purchases. The SPEAKER pro tempore. The un- Sec. 122. Home equity conversion mortgages. Sec. 123. Energy efficient mortgages program. Sec. 604. Additional standard deduction for real finished business is the question on property taxes for nonitemizers. suspending the rules and passing the Sec. 124. Pilot program for automated process for borrowers without sufficient Sec. 605. Election to accelerate AMT and R and bill, H.R. 5512, as amended. credit history. D credits in lieu of bonus depre- The Clerk read the title of the bill. Sec. 125. Homeownership preservation. ciation. The SPEAKER pro tempore. The Sec. 126. Use of FHA savings for improvements Sec. 606. Use of amended income tax returns to question is on the motion offered by in FHA technologies, procedures, take into account receipt of cer- the gentleman from Illinois (Mr. processes, program performance, tain hurricane-related casualty loss grants by disallowing pre- GUTIERREZ) that the House suspend the staffing, and salaries. Sec. 127. Post-purchase housing counseling eli- viously taken casualty loss deduc- rules and pass the bill, H.R. 5512, as tions. amended. gibility improvements. Sec. 128. Pre-purchase homeownership coun- Sec. 607. Waiver of deadline on construction of The question was taken; and (two- seling demonstration. GO Zone property eligible for thirds being in the affirmative) the Sec. 129. Fraud prevention. bonus depreciation. rules were suspended and the bill, as Sec. 130. Limitation on mortgage insurance pre- Sec. 608. Temporary tax relief for Kiowa Coun- amended, was passed. mium increases. ty, Kansas and surrounding area. The title was amended so as to read: Sec. 131. Savings provision. TITLE VII—EMERGENCY DESIGNATION ‘‘A bill to reduce the costs of producing Sec. 132. Implementation. Sec. 701. Emergency designation. 1-cent and 5-cent coins, provide author- Sec. 133. Moratorium on implementation of risk- TITLE VIII—REIT INVESTMENT ity to the Secretary of the Treasury to based premiums. DIVERSIFICATION AND EMPOWERMENT perform research and development on Subtitle B—Manufactured Housing Loan Sec. 801. Short title; amendment of 1986 Code. Modernization new metallic content for circulating Subtitle A—Taxable REIT Subsidiaries Sec. 141. Short title. coins, and to require biennial reports Sec. 811. Conforming taxable REIT subsidiary Sec. 142. Purposes. to Congress on circulating coin produc- asset test. Sec. 143. Exception to limitation on financial tion costs and possible alternative me- institution portfolio. Subtitle B—Dealer Sales tallic content.’’. Sec. 144. Insurance benefits. Sec. 821. Holding period under safe harbor. A motion to reconsider was laid on Sec. 145. Maximum loan limits. Sec. 822. Determining value of sales under safe the table. Sec. 146. Insurance premiums. harbor.

VerDate Mar 15 2010 15:08 Nov 08, 2010 Jkt 069102 PO 00000 Frm 00012 Fmt 0688 Sfmt 6343 E:\BR08\H08MY8.000 H08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD 8156 CONGRESSIONAL RECORD—HOUSE, Vol. 154, Pt. 6 May 8, 2008 Subtitle C—Health Care REITs SEC. 112. MAXIMUM PRINCIPAL LOAN OBLIGA- ‘‘(ii) the sum of the principal obligation of the Sec. 831. Conformity for health care facilities. TION. mortgage and the obligation secured by such (a) IN GENERAL.—Paragraph (2) of section lien may not exceed 100 percent of the appraised Subtitle D—Effective Dates and Sunset 203(b)(2) of the National Housing Act (12 U.S.C. value of the property. Sec. 841. Effective dates and sunset. 1709(b)(2)) is amended— ‘‘(C) PROHIBITED SOURCES.—In no case shall TITLE IX—VETERANS HOUSING MATTERS (1) by amending subparagraphs (A) and (B) to the funds required by subparagraph (A) consist, Sec. 901. Home improvements and structural al- read as follows: in whole or in part, of funds provided by any of ‘‘(A) not to exceed the lesser of— terations for totally disabled mem- the following parties before, during, or after ‘‘(i) in the case of a 1-family residence, 110 bers of the Armed Forces before closing of the property sale: percent of the median 1-family house price in discharge or release from the ‘‘(i) The seller or any other person or entity the area, as determined by the Secretary; and in Armed Forces. that financially benefits from the transaction. the case of a 2-, 3-, or 4-family residence, the Sec. 902. Eligibility for specially adapted hous- ‘‘(ii) Any third party or entity that is reim- percentage of such median price that bears the ing benefits and assistance for bursed, directly or indirectly, by any of the par- same ratio to such median price as the dollar members of the Armed Forces with ties described in clause (i).’’. amount limitation in effect for 2007 under sec- service-connected disabilities and SEC. 114. MORTGAGE INSURANCE PREMIUMS. tion 305(a)(2) of the Federal Home Loan Mort- individuals residing outside the Section 203(c)(2) of the National Housing Act gage Corporation Act (12 U.S.C. 1454(a)(2)) for a United States. (12 U.S.C. 1709(c)(2)) is amended— 2-, 3-, or 4-family residence, respectively, bears Sec. 903. Specially adapted housing assistance (1) in the matter preceding subparagraph (A), to the dollar amount limitation in effect for 2007 for individuals with severe burn by striking ‘‘or of the General Insurance Fund’’ under such section for a 1-family residence; or and all that follows through ‘‘section 234(c),,’’; injuries. ‘‘(ii) 132 percent of the dollar amount limita- and Sec. 904. Extension of assistance for individuals tion in effect for 2007 under such section (2) in subparagraph (A)— residing temporarily in housing 305(a)(2) for a residence of the applicable size (A) by striking ‘‘2.25 percent’’ and inserting owned by a family member. (without regard to any authority to increase Sec. 905. Increase in specially adapted housing ‘‘3 percent’’; and such limitations with respect to properties lo- (B) by striking ‘‘2.0 percent’’ and inserting benefits for disabled veterans. cated in Alaska, Guam, Hawaii, or the Virgin Sec. 906. Report on specially adapted housing ‘‘2.75 percent’’. Islands), except that each such maximum dollar for disabled individuals. SEC. 115. REHABILITATION LOANS. amount shall be adjusted effective January 1 of Sec. 907. Report on specially adapted housing each year beginning with 2009, by adding to or Subsection (k) of section 203 of the National assistance for individuals who re- subtracting from each such amount (as it may Housing Act (12 U.S.C. 1709(k)) is amended— side in housing owned by a family (1) in paragraph (1), by striking ‘‘on’’ and all have been previously adjusted) a percentage member on permanent basis. that follows through ‘‘1978’’; and thereof equal to the percentage increase or de- Sec. 908. Definition of annual income for pur- (2) in paragraph (5)— crease, during the most recently completed 12- poses of section 8 and other public (A) by striking ‘‘General Insurance Fund’’ the month or 4-quarter period ending before the time housing programs. first place it appears and inserting ‘‘Mutual of determining such annual adjustment, in an Sec. 909. Payment of transportation of baggage Mortgage Insurance Fund’’; and housing price index developed or selected by the and household effects for members (B) in the second sentence, by striking the Secretary for purposes of adjustments under this of the Armed Forces who relocate comma and all that follows through ‘‘General clause; due to foreclosure of leased hous- Insurance Fund’’. except that the dollar amount limitation in ef- ing. SEC. 116. DISCRETIONARY ACTION. fect under this subparagraph for any size resi- The National Housing Act is amended— TITLE X—CLEAN ENERGY TAX STIMULUS dence for any area may not be less than the (1) in subsection (e) of section 202 (12 U.S.C. Sec. 1001. Short title; etc. greater of: (I) the dollar amount limitation in ef- 1708(e))— fect under this section for the area on October Subtitle A—Extension of Clean Energy (A) in paragraph (3)(B), by striking ‘‘section 21, 1998; or (II) 65 percent of the dollar amount Production Incentives 202(e) of the National Housing Act’’ and insert- limitation in effect for 2007 under such section Sec. 1011. Extension and modification of renew- ing ‘‘this subsection’’; and able energy production tax credit. 305(a)(2) for a residence of the applicable size, (B) by redesignating such subsection as sub- Sec. 1012. Extension and modification of solar as such limitation is adjusted by any subsequent section (f); energy and fuel cell investment percentage adjustments determined under clause (2) by striking paragraph (4) of section 203(s) tax credit. (ii) of this subparagraph; and (12 U.S.C. 1709(s)(4)) and inserting the following ‘‘(B) not to exceed 100 percent of the ap- Sec. 1013. Extension and modification of resi- new paragraph: praised value of the property.’’; and dential energy efficient property ‘‘(4) the Secretary of Agriculture;’’; and (2) in the matter following subparagraph (B), credit. (3) by transferring subsection (s) of section 203 by striking the second sentence (relating to a Sec. 1014. Extension and modification of credit (as amended by paragraph (2) of this section) to definition of ‘‘average closing cost’’) and all for clean renewable energy bonds. section 202, inserting such subsection after sub- that follows through ‘‘section 3103A(d) of title Sec. 1015. Extension of special rule to implement section (d) of section 202, and redesignating 38, United States Code.’’. FERC restructuring policy. such subsection as subsection (e). (b) EFFECTIVE DATE.—The amendments made Subtitle B—Extension of Incentives to Improve by subsection (a) shall take effect upon the expi- SEC. 117. INSURANCE OF CONDOMINIUMS. Energy Efficiency ration of the date described in section 202(a) of (a) IN GENERAL.—Section 234 of the National Sec. 1021. Extension and modification of credit the Economic Stimulus Act of 2008 (Public Law Housing Act (12 U.S.C. 1715y) is amended— for energy efficiency improve- 110–185). (1) in subsection (c), in the first sentence— ments to existing homes. SEC. 113. CASH INVESTMENT REQUIREMENT AND (A) by striking ‘‘and’’ before ‘‘(2)’’; and Sec. 1022. Extension and modification of tax PROHIBITION OF SELLER-FUNDED (B) by inserting before the period at the end credit for energy efficient new DOWNPAYMENT ASSISTANCE. the following: ‘‘, and (3) the project has a blan- homes. Paragraph 9 of section 203(b) of the National ket mortgage insured by the Secretary under Sec. 1023. Extension and modification of energy Housing Act (12 U.S.C. 1709(b)(9)) is amended to subsection (d)’’; and efficient commercial buildings de- read as follows: (2) in subsection (g), by striking ‘‘, except duction. ‘‘(9) CASH INVESTMENT REQUIREMENT.— that’’ and all that follows and inserting a pe- Sec. 1024. Modification and extension of energy ‘‘(A) IN GENERAL.—A mortgage insured under riod. efficient appliance credit for ap- this section shall be executed by a mortgagor (b) DEFINITION OF MORTGAGE.—Section 201(a) pliances produced after 2007. who shall have paid, in cash, on account of the of the National Housing Act (12 U.S.C. 1707(a)) property an amount equal to not less than 3.5 is amended— TITLE XI—SENSE OF THE SENATE percent of the appraised value of the property or (1) before ‘‘a first mortgage’’ insert ‘‘(A)’’; Sec. 1101. Sense of the Senate. such larger amount as the Secretary may deter- (2) by striking ‘‘or on a leasehold (1)’’ and in- TITLE I—FHA MODERNIZATION ACT OF mine. serting ‘‘(B) a first mortgage on a leasehold on 2008 ‘‘(B) FAMILY MEMBERS.—For purposes of this real estate (i)’’; SEC. 101. SHORT TITLE. paragraph, the Secretary shall consider as cash (3) by striking ‘‘or (2)’’ and inserting ‘‘, or This title may be cited as the ‘‘FHA Mod- or its equivalent any amounts borrowed from a (ii)’’; and ernization Act of 2008’’. family member (as such term is defined in sec- (4) by inserting before the semicolon the fol- tion 201), subject only to the requirements that, lowing: ‘‘, or (C) a first mortgage given to secure Subtitle A—Building American in any case in which the repayment of such bor- the unpaid purchase price of a fee interest in, or Homeownership rowed amounts is secured by a lien against the long-term leasehold interest in, real estate con- SEC. 111. SHORT TITLE. property, that— sisting of a one-family unit in a multifamily This subtitle may be cited as the ‘‘Building ‘‘(i) such lien shall be subordinate to the mort- project, including a project in which the dwell- American Homeownership Act of 2008’’. gage; and ing units are attached, or are manufactured

VerDate Mar 15 2010 15:08 Nov 08, 2010 Jkt 069102 PO 00000 Frm 00013 Fmt 0688 Sfmt 6333 E:\BR08\H08MY8.000 H08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD May 8, 2008 CONGRESSIONAL RECORD—HOUSE, Vol. 154, Pt. 6 8157 housing units, semi-detached, or detached, and The first quarterly report under this paragraph (5) Section 222 (12 U.S.C. 1715m). an undivided interest in the common areas and shall be submitted on the last day of the first (6) Section 237 (12 U.S.C. 1715z–2). facilities which serve the project’’. quarter of fiscal year 2008, or on the last day of (7) Section 245 (12 U.S.C. 1715z–10). (c) DEFINITION OF REAL ESTATE.—Section 201 the first full calendar quarter following the en- (b) DEFINITION OF AREA.—Section 203(u)(2)(A) of the National Housing Act (12 U.S.C. 1707) is actment of the Building American Homeowner- of the National Housing Act (12 U.S.C. amended by adding at the end the following ship Act of 2008, whichever is later. 1709(u)(2)(A)) is amended by striking ‘‘shall’’ new subsection: ‘‘(6) ADJUSTMENT OF PREMIUMS.—If, pursuant and all that follows and inserting ‘‘means a ‘‘(g) The term ‘real estate’ means land and all to the independent actuarial study of the Fund metropolitan statistical area as established by natural resources and structures permanently required under paragraph (4), the Secretary de- the Office of Management and Budget;’’. affixed to the land, including residential build- termines that the Fund is not meeting the oper- (c) DEFINITION OF STATE.—Section 201(d) of ings and stationary manufactured housing. The ational goals established under paragraph (7) or the National Housing Act (12 U.S.C. 1707(d)) is Secretary may not require, for treatment of any there is a substantial probability that the Fund amended by striking ‘‘the Trust Territory of the land or other property as real estate for pur- will not maintain its established target subsidy Pacific Islands’’ and inserting ‘‘the Common- poses of this title, that such land or property be rate, the Secretary may either make pro- wealth of the Northern Mariana Islands’’. treated as real estate for purposes of State tax- grammatic adjustments under this title as nec- SEC. 121. INSURANCE OF MORTGAGES. ation.’’. essary to reduce the risk to the Fund, or make Subsection (n)(2) of section 203 of the National SEC. 118. MUTUAL MORTGAGE INSURANCE FUND. appropriate premium adjustments. Housing Act (12 U.S.C. 1709(n)(2)) is amended— (a) IN GENERAL.—Subsection (a) of section 202 ‘‘(7) OPERATIONAL GOALS.—The operational (1) in subparagraph (A), by inserting ‘‘or sub- of the National Housing Act (12 U.S.C. 1708(a)) goals for the Fund are— ordinate mortgage or’’ before ‘‘lien given’’; and is amended to read as follows: ‘‘(A) to minimize the default risk to the Fund (2) in subparagraph (C), by inserting ‘‘or sub- ‘‘(a) MUTUAL MORTGAGE INSURANCE FUND.— and to homeowners by among other actions in- ordinate mortgage or’’ before ‘‘lien’’. ‘‘(1) ESTABLISHMENT.—Subject to the provi- stituting fraud prevention quality control sions of the Federal Credit Reform Act of 1990, SEC. 122. HOME EQUITY CONVERSION MORT- screening not later than 18 months after the GAGES. there is hereby created a Mutual Mortgage In- date of enactment of the Building American (a) IN GENERAL.—Section 255 of the National surance Fund (in this title referred to as the Homeownership Act of 2008; and Housing Act (12 U.S.C. 1715z–20) is amended— ‘Fund’), which shall be used by the Secretary to ‘‘(B) to meet the housing needs of the bor- (1) in subsection (b)(2), insert ‘‘ ‘real estate,’ ’’ carry out the provisions of this title with respect rowers that the single family mortgage insur- after ‘‘ ‘mortgagor’,’’; to mortgages insured under section 203. The Sec- ance program under this title is designed to (2) by amending subsection (d)(1) to read as retary may enter into commitments to guar- serve.’’. follows: antee, and may guarantee, such insured mort- (b) OBLIGATIONS OF FUND.—The National ‘‘(1) have been originated by a mortgagee ap- gages. Housing Act is amended as follows: proved by the Secretary;’’; ‘‘(2) LIMIT ON LOAN GUARANTEES.—The au- (1) HOMEOWNERSHIP VOUCHER PROGRAM MORT- (3) by amending subsection (d)(2)(B) to read thority of the Secretary to enter into commit- GAGES.—In section 203(v) (12 U.S.C. 1709(v))— as follows: ments to guarantee such insured mortgages (A) by striking ‘‘Notwithstanding section 202 ‘‘(B) has received adequate counseling, as shall be effective for any fiscal year only to the of this title, the’’ and inserting ‘‘The’’; and provided in subsection (f), by an independent extent that the aggregate original principal loan (B) by striking ‘‘General Insurance Fund’’ the third party that is not, either directly or indi- amount under such mortgages, any part of first place such term appears and all that fol- rectly, associated with or compensated by a which is guaranteed, does not exceed the lows through the end of the subsection and in- party involved in— amount specified in appropriations Acts for serting ‘‘Mutual Mortgage Insurance Fund.’’. ‘‘(i) originating or servicing the mortgage; such fiscal year. (2) HOME EQUITY CONVERSION MORTGAGES.— ‘‘(ii) funding the loan underlying the mort- ‘‘(3) FIDUCIARY RESPONSIBILITY.—The Sec- Section 255(i)(2)(A) of the National Housing Act gage; or retary has a responsibility to ensure that the (12 U.S.C. 1715z–20(i)(2)(A)) is amended by strik- Mutual Mortgage Insurance Fund remains fi- ‘‘(iii) the sale of annuities, investments, long- ing ‘‘General Insurance Fund’’ and inserting term care insurance, or any other type of finan- nancially sound. ‘‘Mutual Mortgage Insurance Fund’’. ‘‘(4) ANNUAL INDEPENDENT ACTUARIAL cial or insurance product;’’; (c) CONFORMING AMENDMENTS.—The National (4) in subsection (f)— STUDY.—The Secretary shall provide for an Housing Act is amended— independent actuarial study of the Fund to be (A) by striking ‘‘(f) INFORMATION SERVICES (1) in section 205 (12 U.S.C. 1711), by striking FOR MORTGAGORS.—’’ and inserting ‘‘(f) COUN- conducted annually, which shall analyze the fi- subsections (g) and (h); and nancial position of the Fund. The Secretary SELING SERVICES AND INFORMATION FOR MORT- (2) in section 519(e) (12 U.S.C. 1735c(e)), by GAGORS.—’’; and shall submit a report annually to the Congress striking ‘‘203(b)’’ and all that follows through describing the results of such study and assess- (B) by amending the matter preceding para- ‘‘203(i)’’ and inserting ‘‘203, except as deter- graph (1) to read as follows: ‘‘The Secretary ing the financial status of the Fund. The report mined by the Secretary’’. shall recommend adjustments to underwriting shall provide or cause to be provided adequate standards, program participation, or premiums, SEC. 119. HAWAIIAN HOME LANDS AND INDIAN counseling for the mortgagor, as described in RESERVATIONS. if necessary, to ensure that the Fund remains fi- subsection (d)(2)(B). Such counseling shall be (a) HAWAIIAN HOME LANDS.—Section 247(c) of nancially sound. The report shall also include provided by counselors that meet qualification the National Housing Act (12 U.S.C. 1715z–12(c)) an evaluation of the quality control procedures standards and follow uniform counseling proto- is amended— and accuracy of information utilized in the cols. The qualification standards and coun- (1) by striking ‘‘General Insurance Fund es- process of underwriting loans guaranteed by the seling protocols shall be established by the Sec- tablished in section 519’’ and inserting ‘‘Mutual Fund. Such evaluation shall include a review of retary within 12 months of the date of enact- Mortgage Insurance Fund’’; and the risk characteristics of loans based not only ment of the Reverse Mortgage Proceeds Protec- (2) in the second sentence, by striking ‘‘(1) all on borrower information and performance, but tion Act. The protocols shall require a qualified references’’ and all that follows through ‘‘and on risks associated with loans originated or counselor to discuss with each mortgagor infor- (2)’’. funded by various entities or financial institu- mation which shall include—’’ (b) INDIAN RESERVATIONS.—Section 248(f) of tions. (5) in subsection (g), by striking ‘‘established the National Housing Act (12 U.S.C. 1715z–13(f)) ‘‘(5) QUARTERLY REPORTS.—During each fiscal under section 203(b)(2)’’ and all that follows is amended— year, the Secretary shall submit a report to the through ‘‘located’’ and inserting ‘‘limitation es- (1) by striking ‘‘General Insurance Fund’’ the Congress for each calendar quarter, which shall tablished under section 305(a)(2) of the Federal first place it appears through ‘‘519’’ and insert- specify for mortgages that are obligations of the Home Loan Mortgage Corporation Act for a 1- ing ‘‘Mutual Mortgage Insurance Fund’’; and Fund— family residence’’; ‘‘(A) the cumulative volume of loan guarantee (2) in the second sentence, by striking ‘‘(1) all (6) in subsection (i)(1)(C), by striking ‘‘limita- commitments that have been made during such references’’ and all that follows through ‘‘and tions’’ and inserting ‘‘limitation’’; fiscal year through the end of the quarter for (2)’’. (7) by striking subsection (l); which the report is submitted; SEC. 120. CONFORMING AND TECHNICAL AMEND- (8) by redesignating subsection (m) as sub- ‘‘(B) the types of loans insured, categorized by MENTS. section (l); risk; (a) REPEALS.—The following provisions of the (9) by amending subsection (l), as so redesig- ‘‘(C) any significant changes between actual National Housing Act are repealed: nated, to read as follows: and projected claim and prepayment activity; (1) Subsection (i) of section 203 (12 U.S.C. ‘‘(l) FUNDING FOR COUNSELING.—The Sec- ‘‘(D) projected versus actual loss rates; and 1709(i)). retary may use a portion of the mortgage insur- ‘‘(E) updated projections of the annual sub- (2) Subsection (o) of section 203 (12 U.S.C. ance premiums collected under the program sidy rates to ensure that increases in risk to the 1709(o)). under this section to adequately fund the coun- Fund are identified and mitigated by adjust- (3) Subsection (p) of section 203 (12 U.S.C. seling and disclosure activities required under ments to underwriting standards, program par- 1709(p)). subsection (f), including counseling for those ticipation, or premiums, and the financial (4) Subsection (q) of section 203 (12 U.S.C. homeowners who elect not to take out a home soundness of the Fund is maintained. 1709(q)). equity conversion mortgage, provided that the

VerDate Mar 15 2010 15:08 Nov 08, 2010 Jkt 069102 PO 00000 Frm 00014 Fmt 0688 Sfmt 6333 E:\BR08\H08MY8.000 H08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD 8158 CONGRESSIONAL RECORD—HOUSE, Vol. 154, Pt. 6 May 8, 2008 use of such funds is based upon accepted actu- 1715z–20), as amended by the preceding provi- SEC. 124. PILOT PROGRAM FOR AUTOMATED arial principles.’’; and sions of this section, is further amended by add- PROCESS FOR BORROWERS WITH- (10) by adding at the end the following new ing at the end the following new subsection: OUT SUFFICIENT CREDIT HISTORY. subsection: ‘‘(r) LIMITATION ON ORIGINATION FEES.—The (a) ESTABLISHMENT.—Title II of the National ‘‘(m) AUTHORITY TO INSURE HOME PURCHASE Secretary shall establish limits on the origina- Housing Act (12 U.S.C. 1707 et seq.) is amended MORTGAGE.— tion fee that may be charged to a mortgagor by adding at the end the following new section: ‘‘(1) IN GENERAL.—Notwithstanding any other under a mortgage insured under this section, ‘‘SEC. 257. PILOT PROGRAM FOR AUTOMATED provision of this section, the Secretary may in- which limitations shall— PROCESS FOR BORROWERS WITH- sure, upon application by a mortgagee, a home ‘‘(1) equal 1.5 percent of the maximum claim OUT SUFFICIENT CREDIT HISTORY. equity conversion mortgage upon such terms amount of the mortgage unless adjusted there- ‘‘(a) ESTABLISHMENT.—The Secretary shall and conditions as the Secretary may prescribe, after on the basis of— carry out a pilot program to establish, and make when the home equity conversion mortgage will ‘‘(A) the costs to the mortgagor; and available to mortgagees, an automated process be used to purchase a 1- to 4-family dwelling ‘‘(B) the impact of such fees on the reverse for providing alternative credit rating informa- unit, one unit of which the mortgagor will oc- mortgage market; tion for mortgagors and prospective mortgagors cupy as a primary residence, and to provide for ‘‘(2) be subject to a minimum allowable under mortgages on 1- to 4-family residences to any future payments to the mortgagor, based on amount; be insured under this title who have insufficient available equity, as authorized under subsection ‘‘(3) provide that the origination fee may be credit histories for determining their credit- (d)(9). fully financed with the mortgage; worthiness. Such alternative credit rating infor- ‘‘(2) LIMITATION ON PRINCIPAL OBLIGATION.—A ‘‘(4) include any fees paid to correspondent mation may include rent, utilities, and insur- home equity conversion mortgage insured pursu- mortgagees approved by the Secretary; and ance payment histories, and such other informa- ant to paragraph (1) shall involve a principal ‘‘(5) have the same effective date as subsection tion as the Secretary considers appropriate. obligation that does not exceed the dollar (m)(2) regarding the limitation on principal obli- ‘‘(b) SCOPE.—The Secretary may carry out the amount limitation determined under section gation.’’. pilot program under this section on a limited 305(a)(2) of the Federal Home Loan Mortgage (d) STUDY REGARDING PROGRAM COSTS AND basis or scope, and may consider limiting the Corporation Act for a 1-family residence. CREDIT AVAILABILITY.— program to first-time homebuyers. ‘‘(n) REQUIREMENTS ON MORTGAGE ORIGINA- (1) IN GENERAL.—The Comptroller General of ‘‘(c) LIMITATION.—In any fiscal year, the ag- TORS.— the United States shall conduct a study regard- gregate number of mortgages insured pursuant ‘‘(1) IN GENERAL.—The mortgagee and any ing the costs and availability of credit under the to the automated process established under this other party that participates in the origination home equity conversion mortgages for elderly section may not exceed 5 percent of the aggre- of a mortgage to be insured under this section homeowners program under section 255 of the gate number of mortgages for 1- to 4-family resi- shall— National Housing Act (12 U.S.C. 1715z–20) (in dences insured by the Secretary under this title ‘‘(A) not participate in, be associated with, or this subsection referred to as the ‘‘program’’). during the preceding fiscal year. employ any party that participates in or is asso- (2) PURPOSE.—The purpose of the study re- ‘‘(d) SUNSET.—After the expiration of the 5- ciated with any other financial or insurance ac- quired under paragraph (1) is to help Congress year period beginning on the date of the enact- tivity; or analyze and determine the effects of limiting the ment of the Building American Homeownership ‘‘(B) demonstrate to the Secretary that the amounts of the costs or fees under the program Act of 2008, the Secretary may not enter into mortgagee or other party maintains, or will from the amounts charged under the program as any new commitment to insure any mortgage, or maintain, firewalls and other safeguards de- of the date of the enactment of this title. newly insure any mortgage, pursuant to the signed to ensure that— (3) CONTENT OF REPORT.—The study required automated process established under this sec- ‘‘(i) individuals participating in the origina- under paragraph (1) should focus on— tion.’’. tion of the mortgage shall have no involvement (A) the cost to mortgagors of participating in (b) GAO REPORT.—Not later than the expira- with, or incentive to provide the mortgagor the program; tion of the two-year period beginning on the with, any other financial or insurance product; (B) the financial soundness of the program; date of the enactment of this subtitle, the Comp- and (C) the availability of credit under the pro- troller General of the United States shall submit ‘‘(ii) the mortgagor shall not be required, di- gram; and to the Congress a report identifying the number rectly or indirectly, as a condition of obtaining (D) the costs to elderly homeowners partici- of additional mortgagors served using the auto- a mortgage under this section, to purchase any pating in the program, including— mated process established pursuant to section other financial or insurance product. (i) mortgage insurance premiums charged 257 of the National Housing Act (as added by ‘‘(2) APPROVAL OF OTHER PARTIES.—All par- under the program; the amendment made by subsection (a) of this ties that participate in the origination of a mort- (ii) up-front fees charged under the program; section) and the impact of such process and the gage to be insured under this section shall be and insurance of mortgages pursuant to such process approved by the Secretary. (iii) margin rates charged under the program. on the safety and soundness of the insurance ‘‘(o) PROHIBITION AGAINST REQUIREMENTS TO (4) TIMING OF REPORT.—Not later than 12 funds under the National Housing Act of which PURCHASE ADDITIONAL PRODUCTS.—The mort- months after the date of the enactment of this such mortgages are obligations. gagee or any other party shall not be required title, the Comptroller General shall submit a re- SEC. 125. HOMEOWNERSHIP PRESERVATION. by the mortgagor or any other party to purchase port to the Committee on Banking, Housing, The Secretary of Housing and Urban Develop- an insurance, annuity, or other additional and Urban Affairs of the Senate and the Com- ment and the Commissioner of the Federal product as a requirement or condition of eligi- mittee on Financial Services of the House of Housing Administration, in consultation with bility for a mortgage authorized under sub- Representatives setting forth the results and industry, the Neighborhood Reinvestment Cor- section (c). conclusions of the study required under para- poration, and other entities involved in fore- ‘‘(p) STUDY TO DETERMINE CONSUMER PRO- graph (1). closure prevention activities, shall— TECTIONS AND UNDERWRITING STANDARDS.—The SEC. 123. ENERGY EFFICIENT MORTGAGES PRO- (1) develop and implement a plan to improve Secretary shall conduct a study to examine and GRAM. the Federal Housing Administration’s loss miti- determine appropriate consumer protections and Section 106(a)(2) of the Energy Policy Act of gation process; and underwriting standards to ensure that the pur- 1992 (42 U.S.C. 12712 note) is amended— (2) report such plan to the Committee on chase of products referred to in subsection (o) is (1) by amending subparagraph (C) to read as Banking, Housing, and Urban Affairs of the appropriate for the consumer. In conducting follows: Senate and the Committee on Financial Services such study, the Secretary shall consult with ‘‘(C) COSTS OF IMPROVEMENTS.—The cost of of the House of Representatives. consumer advocates (including recognized ex- cost-effective energy efficiency improvements SEC. 126. USE OF FHA SAVINGS FOR IMPROVE- perts in consumer protection), industry rep- shall not exceed the greater of— MENTS IN FHA TECHNOLOGIES, PRO- resentatives, representatives of counseling orga- ‘‘(i) 5 percent of the property value (not to ex- CEDURES, PROCESSES, PROGRAM nizations, and other interested parties.’’. ceed 5 percent of the limit established under sec- PERFORMANCE, STAFFING, AND SAL- (b) MORTGAGES FOR COOPERATIVES.—Sub- tion 203(b)(2)(A)) of the National Housing Act ARIES. section (b) of section 255 of the National Hous- (12 U.S.C. 1709(b)(2)(A); or (a) AUTHORIZATION OF APPROPRIATIONS.— ing Act (12 U.S.C. 1715z–20(b)) is amended— ‘‘(ii) 2 percent of the limit established under There is authorized to be appropriated for each (1) in paragraph (4)— section 203(b)(2)(B) of such Act.’’; and of fiscal years 2009 through 2013, $25,000,000, (A) by inserting ‘‘a first or subordinate mort- (2) by adding at the end the following: from negative credit subsidy for the mortgage in- gage or lien’’ before ‘‘on all stock’’; ‘‘(D) LIMITATION.—In any fiscal year, the ag- surance programs under title II of the National (B) by inserting ‘‘unit’’ after ‘‘dwelling’’; and gregate number of mortgages insured pursuant Housing Act, to the Secretary of Housing and (C) by inserting ‘‘a first mortgage or first lien’’ to this section may not exceed 5 percent of the Urban Development for increasing funding for before ‘‘on a leasehold’’; and aggregate number of mortgages for 1- to 4-family the purpose of improving technology, processes, (2) in paragraph (5), by inserting ‘‘a first or residences insured by the Secretary of Housing program performance, eliminating fraud, and subordinate lien on’’ before ‘‘all stock’’. and Urban Development under title II of the for providing appropriate staffing in connection (c) LIMITATION ON ORIGINATION FEES.—Sec- National Housing Act (12 U.S.C. 1707 et seq.) with the mortgage insurance programs under tion 255 of the National Housing Act (12 U.S.C. during the preceding fiscal year.’’. title II of the National Housing Act.

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(b) CERTIFICATION.—The authorization under such date of enactment, the Secretary of Hous- (A) notifies the Committee on Banking, Hous- subsection (a) shall not be effective for a fiscal ing and Urban Development shall establish and ing, and Urban Affairs of the Senate and the year unless the Secretary of Housing and Urban conduct a demonstration program to test the ef- Committee on Financial Services of the House of Development has, by rulemaking in accordance fectiveness of alternative forms of pre-purchase Representatives of such increase; and with section 553 of title 5, United States Code homeownership counseling for eligible home- (B) publishes notice of such increase in the (notwithstanding subsections (a)(2), (b)(B), and buyers. Federal Register. (d)(3) of such section), made a determination (b) FORMS OF COUNSELING.—The Secretary of (b) WAIVER.—The Secretary of Housing and that— Housing and Urban Development shall provide Urban Development may waive the 30-day no- (1) premiums being, or to be, charged during to eligible homebuyers pre-purchase homeowner- tice requirement under subsection (a)(2), if the such fiscal year for mortgage insurance under ship counseling under this section in the form Secretary determines that waiting 30-days before title II of the National Housing Act are estab- of— increasing premiums would cause substantial lished at the minimum amount sufficient to— (1) telephone counseling; damage to the solvency of multifamily housing (A) comply with the requirements of section (2) individualized in-person counseling; programs under the National Housing Act. 205(f) of such Act (relating to required capital (3) web-based counseling; SEC. 131. SAVINGS PROVISION. (4) counseling classes; or ratio for the Mutual Mortgage Insurance Any mortgage insured under title II of the Na- (5) any other form or type of counseling that Fund); and tional Housing Act before the date of enactment the Secretary may, in his discretion, determine (B) ensure the safety and soundness of the of this subtitle shall continue to be governed by appropriate. other mortgage insurance funds under such Act; the laws, regulations, orders, and terms and (c) SIZE OF PROGRAM.—The Secretary shall and make available the pre-purchase homeownership conditions to which it was subject on the day (2) any negative credit subsidy for such fiscal counseling described in subsection (b) to not before the date of the enactment of this subtitle. year resulting from such mortgage insurance more than 3,000 eligible homebuyers in any SEC. 132. IMPLEMENTATION. programs adequately ensures the efficient deliv- given year. The Secretary of Housing and Urban Develop- ery and availability of such programs. (d) INCENTIVE TO PARTICIPATE.—The Sec- ment shall by notice establish any additional re- (c) STUDY AND REPORT.—The Secretary of retary of Housing and Urban Development may quirements that may be necessary to imme- Housing and Urban Development shall conduct provide incentives to eligible homebuyers to par- diately carry out the provisions of this subtitle. a study to obtain recommendations from partici- ticipate in the demonstration program estab- The notice shall take effect upon issuance. pants in the private residential (both single fam- lished under subsection (a). Such incentives may SEC. 133. MORATORIUM ON IMPLEMENTATION OF ily and multifamily) mortgage lending business include the reduction of any insurance premium RISK-BASED PREMIUMS. and the secondary market for such mortgages on charges owed by the eligible homebuyer to the For the 12-month period beginning on the date how best to update and upgrade processes and Secretary. of enactment of this title, the Secretary of Hous- technologies for the mortgage insurance pro- (e) ELIGIBLE HOMEBUYER DEFINED.—For pur- ing and Urban Development shall not enact, grams under title II of the National Housing Act poses of this section an ‘‘eligible homebuyer’’ execute, or take any action to make effective the so that the procedures for originating, insuring, means a first-time homebuyer who has been ap- planned implementation of risk-based premiums, and servicing of such mortgages conform with proved for a home loan with a loan-to-value which are designed for mortgage lenders to offer those customarily used by secondary market ratio between 97 percent and 98.5 percent. borrowers an FHA-insured product that pro- purchasers of residential mortgage loans. Not (f) REPORT TO CONGRESS.—The Secretary of vides a range of mortgage insurance premium later than the expiration of the 12-month period Housing and Urban Development shall report to pricing, based on the risk the insurance contract beginning on the date of the enactment of this the Committee on Banking, Housing, and Urban represents, as such planned implementation was title, the Secretary shall submit a report to the Affairs of the Senate and the Committee on Fi- set forth in the Notice published in the Federal Congress describing the progress made and to be nancial Services of the House of Representa- Register on September 20, 2007 (Vol. 72, No. 182, made toward updating and upgrading such tive— Page 53872). processes and technology, and providing appro- (1) on an annual basis, on the progress and priate staffing for such mortgage insurance pro- Subtitle B—Manufactured Housing Loan results of the demonstration program established Modernization grams. under subsection (a); and SEC. 127. POST-PURCHASE HOUSING COUN- (2) for the period beginning on the date of en- SEC. 141. SHORT TITLE. SELING ELIGIBILITY IMPROVE- actment of this title and ending on the date that This subtitle may be cited as the ‘‘FHA Manu- MENTS. is 5 years after such date of enactment, on the factured Housing Loan Modernization Act of Section 106(c)(4) of the Housing and Urban payment history and delinquency rates of eligi- 2008’’. Development Act of 1968 (12 U.S.C. 1701x(c)(4)) ble homebuyers who participated in the dem- SEC. 142. PURPOSES. is amended: onstration program. The purposes of this subtitle are— (1) in subparagraph (C)— SEC. 129. FRAUD PREVENTION. (1) to provide adequate funding for FHA-in- (A) in clause (i), by striking ‘‘; or’’ and insert- Section 1014 of title 18, United States Code, is sured manufactured housing loans for low- and ing a semicolon; amended in the first sentence— moderate-income homebuyers during all eco- (B) in clause (ii), by striking the period at the (1) by inserting ‘‘the Federal Housing Admin- nomic cycles in the manufactured housing in- end and inserting a semicolon; and istration’’ before ‘‘the Farm Credit Administra- dustry; (C) by adding at the end the following: tion’’; and (2) to modernize the FHA title I insurance ‘‘(iii) a significant reduction in the income of (2) by striking ‘‘commitment, or loan’’ and in- program for manufactured housing loans to en- the household due to divorce or death; or serting ‘‘commitment, loan, or insurance agree- hance participation by Ginnie Mae and the pri- ‘‘(iv) a significant increase in basic expenses ment or application for insurance or a guar- vate lending markets; and of the homeowner or an immediate family mem- antee’’. (3) to adjust the low loan limits for title I ber of the homeowner (including the spouse, SEC. 130. LIMITATION ON MORTGAGE INSURANCE manufactured home loan insurance to reflect child, or parent for whom the homeowner pro- PREMIUM INCREASES. the increase in costs since such limits were last vides substantial care or financial assistance) (a) IN GENERAL.—Notwithstanding any other increased in 1992 and to index the limits to in- due to— provision of law, including any provision of this flation. ‘‘(I) an unexpected or significant increase in title and any amendment made by this title— SEC. 143. EXCEPTION TO LIMITATION ON FINAN- medical expenses; (1) for the period beginning on the date of the CIAL INSTITUTION PORTFOLIO. ‘‘(II) a divorce; enactment of this title and ending on October 1, The second sentence of section 2(a) of the Na- ‘‘(III) unexpected and significant damage to 2009, the premiums charged for mortgage insur- tional Housing Act (12 U.S.C. 1703(a)) is amend- the property, the repair of which will not be ance under multifamily housing programs under ed— covered by private or public insurance; or the National Housing Act may not be increased (1) by striking ‘‘In no case’’ and inserting ‘‘(IV) a large property-tax increase; or’’; above the premium amounts in effect under such ‘‘Other than in connection with a manufactured (2) by striking the matter that follows sub- program on October 1, 2006, unless the Secretary home or a lot on which to place such a home (or paragraph (C); and of Housing and Urban Development determines both), in no case’’; and (3) by adding at the end the following: that, absent such increase, insurance of addi- (2) by striking ‘‘: Provided, That with’’ and ‘‘(D) the Secretary of Housing and Urban De- tional mortgages under such program would, inserting ‘‘. With’’. velopment determines that the annual income of under the Federal Credit Reform Act of 1990, re- SEC. 144. INSURANCE BENEFITS. the homeowner is no greater than the annual quire the appropriation of new budget authority (a) IN GENERAL.—Subsection (b) of section 2 of income established by the Secretary as being of to cover the costs (as such term is defined in sec- the National Housing Act (12 U.S.C. 1703(b)), is low- or moderate-income.’’. tion 502 of the Federal Credit Reform Act of 1990 amended by adding at the end the following SEC. 128. PRE-PURCHASE HOMEOWNERSHIP (2 U.S.C. 661a) of such insurance; and new paragraph: COUNSELING DEMONSTRATION. (2) a premium increase pursuant to paragraph ‘‘(8) INSURANCE BENEFITS FOR MANUFACTURED (a) ESTABLISHMENT OF PROGRAM.—For the pe- (1) may be made only if not less than 30 days HOUSING LOANS.—Any contract of insurance riod beginning on the date of enactment of this prior to such increase taking effect, the Sec- with respect to loans, advances of credit, or pur- title and ending on the date that is 3 years after retary of Housing and Urban Development— chases in connection with a manufactured home

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(or both) for a financial institution that is exe- purchased in an amount not exceeding 1.0 per- (a) IN GENERAL.—Subsection (b) of section 2 of cuted under this title after the date of the enact- cent of the remaining insured principal balance the National Housing Act (12 U.S.C. 1703(b)), as ment of the FHA Manufactured Housing Loan (excluding the portion of the remaining balance amended by the preceding provisions of this Modernization Act of 2008 by the Secretary shall attributable to the premium collected under sub- title, is further amended by adding at the end be conclusive evidence of the eligibility of such paragraph (A) and without taking into account the following new paragraph: financial institution for insurance, and the va- delinquent payments or prepayments). ‘‘(10) FINANCIAL SOUNDNESS OF MANUFAC- lidity of any contract of insurance so executed ‘‘(C) Premium charges under this paragraph TURED HOUSING PROGRAM.—The Secretary shall shall be incontestable in the hands of the bearer shall be established in amounts that are suffi- establish such underwriting criteria for loans from the date of the execution of such contract, cient, but do not exceed the minimum amounts and advances of credit in connection with a except for fraud or misrepresentation on the necessary, to maintain a negative credit subsidy manufactured home or a lot on which to place part of such institution.’’. for the program under this section for insurance a manufactured home (or both), including such (b) APPLICABILITY.—The amendment made by of loans, advances of credit, or purchases in loans and advances represented by obligations subsection (a) shall only apply to loans that are connection with a manufactured home or a lot purchased by financial institutions, as may be registered or endorsed for insurance after the on which to place such a home (or both), as de- necessary to ensure that the program under this date of the enactment of this title. termined based upon risk to the Federal Govern- title for insurance for financial institutions SEC. 145. MAXIMUM LOAN LIMITS. ment under existing underwriting requirements. against losses from such loans, advances of (a) DOLLAR AMOUNTS.—Paragraph (1) of sec- ‘‘(D) The Secretary may increase the limita- credit, and purchases is financially sound.’’. tion 2(b) of the National Housing Act (12 U.S.C. tions on premium payments to percentages (b) TIMING.—Not later than the expiration of 1703(b)(1)) is amended— above those set forth in subparagraphs (A) and the 6-month period beginning on the date of the (1) in clause (ii) of subparagraph (A), by strik- (B), but only if necessary, and not in excess of enactment of this title, the Secretary of Housing ing ‘‘$17,500’’ and inserting ‘‘$25,090’’; the minimum increase necessary, to maintain a and Urban Development shall revise the existing (2) in subparagraph (C) by striking ‘‘$48,600’’ negative credit subsidy as described in subpara- underwriting criteria for the program referred to and inserting ‘‘$69,678’’; graph (C).’’. in paragraph (10) of section 2(b) of the National (3) in subparagraph (D) by striking ‘‘$64,800’’ SEC. 147. TECHNICAL CORRECTIONS. Housing Act (as added by subsection (a) of this and inserting ‘‘$92,904’’; (a) DATES.—Subsection (a) of section 2 of the section) in accordance with the requirements of (4) in subparagraph (E) by striking ‘‘$16,200’’ National Housing Act (12 U.S.C. 1703(a)) is such paragraph. and inserting ‘‘$23,226’’; and amended— SEC. 149. PROHIBITION AGAINST KICKBACKS AND (5) by realigning subparagraphs (C), (D), and (1) by striking ‘‘on and after July 1, 1939,’’ UNEARNED FEES. (E) 2 ems to the left so that the left margins of each place such term appears; and Title I of the National Housing Act is amend- such subparagraphs are aligned with the mar- (2) by striking ‘‘made after the effective date ed by adding at the end of section 9 the fol- gins of subparagraphs (A) and (B). of the Housing Act of 1954’’. lowing new section: (b) ANNUAL INDEXING.—Subsection (b) of sec- (b) AUTHORITY OF SECRETARY.—Subsection (c) ‘‘SEC. 10. PROHIBITION AGAINST KICKBACKS AND tion 2 of the National Housing Act (12 U.S.C. of section 2 of the National Housing Act (12 UNEARNED FEES. 1703(b)), as amended by the preceding provisions U.S.C. 1703(c)) is amended to read as follows: ‘‘(a) IN GENERAL.—Except as provided in sub- of this title, is further amended by adding at the ‘‘(c) HANDLING AND DISPOSAL OF PROPERTY.— section (b), the provisions of sections 3, 8, 16, 17, end the following new paragraph: ‘‘(1) AUTHORITY OF SECRETARY.—Notwith- 18, and 19 of the Real Estate Settlement Proce- ‘‘(9) ANNUAL INDEXING OF MANUFACTURED standing any other provision of law, the Sec- dures Act of 1974 (12 U.S.C. 2601 et seq.) shall HOUSING LOANS.—The Secretary shall develop a retary may— apply to each sale of a manufactured home fi- method of indexing in order to annually adjust ‘‘(A) deal with, complete, rent, renovate, mod- nanced with an FHA-insured loan or extension the loan limits established in subparagraphs ernize, insure, or assign or sell at public or pri- of credit, as well as to services rendered in con- (A)(ii), (C), (D), and (E) of this subsection. Such vate sale, or otherwise dispose of, for cash or nection with such transactions. index shall be based on the manufactured hous- credit in the Secretary’s discretion, and upon ‘‘(b) AUTHORITY OF THE SECRETARY.—The Sec- ing price data collected by the United States such terms and conditions and for such consid- retary is authorized to determine the manner Census Bureau. The Secretary shall establish eration as the Secretary shall determine to be and extent to which the provisions of sections 3, such index no later than 1 year after the date of reasonable, any real or personal property con- 8, 16, 17, 18, and 19 of the Real Estate Settlement the enactment of the FHA Manufactured Hous- veyed to or otherwise acquired by the Secretary, Procedures Act of 1974 (12 U.S.C. 2601 et seq.) ing Loan Modernization Act of 2008.’’ in connection with the payment of insurance may reasonably be applied to the transactions (c) TECHNICAL AND CONFORMING CHANGES.— heretofore or hereafter granted under this title, described in subsection (a), and to grant such Paragraph (1) of section 2(b) of the National including any evidence of debt, contract, claim, exemptions as may be necessary to achieve the Housing Act (12 U.S.C. 1703(b)(1)) is amended— personal property, or security assigned to or purposes of this section. (1) by striking ‘‘No’’ and inserting ‘‘Except as held by him in connection with the payment of ‘‘(c) DEFINITIONS.—For purposes of this sec- provided in the last sentence of this paragraph, insurance heretofore or hereafter granted under tion— no’’; and this section; and ‘‘(1) the term ‘federally related mortgage loan’ (2) by adding after and below subparagraph ‘‘(B) pursue to final collection, by way of as used in sections 3, 8, 16, 17, 18, and 19 of the (G) the following: compromise or otherwise, all claims assigned to Real Estate Settlement Procedures Act of 1974 ‘‘The Secretary shall, by regulation, annually or held by the Secretary and all legal or equi- (12 U.S.C. 2601 et seq.) shall include an FHA-in- increase the dollar amount limitations in sub- table rights accruing to the Secretary in connec- sured loan or extension of credit made to a bor- paragraphs (A)(ii), (C), (D), and (E) (as such tion with the payment of such insurance, in- rower for the purpose of purchasing a manufac- limitations may have been previously adjusted cluding unpaid insurance premiums owed in tured home that the borrower intends to occupy under this sentence) in accordance with the connection with insurance made available by as a personal residence; and index established pursuant to paragraph (9).’’. this title. ‘‘(2) the term ‘real estate settlement service’ as SEC. 146. INSURANCE PREMIUMS. ‘‘(2) ADVERTISEMENTS FOR PROPOSALS.—Sec- used in sections 3, 8, 16, 17, 18, and 19 of the Subsection (f) of section 2 of the National tion 3709 of the Revised Statutes shall not be Real Estate Settlement Procedures Act of 1974 Housing Act (12 U.S.C. 1703(f)) is amended— construed to apply to any contract of hazard in- (12 U.S.C. 2601 et seq.) shall include any service (1) by inserting ‘‘(1) PREMIUM CHARGES.—’’ surance or to any purchase or contract for serv- rendered in connection with a loan or extension after ‘‘(f)’’; and ices or supplies on account of such property if of credit insured by the Federal Housing Admin- (2) by adding at the end the following new the amount thereof does not exceed $25,000. istration for the purchase of a manufactured paragraph: ‘‘(3) DELEGATION OF AUTHORITY.—The power home. ‘‘(2) MANUFACTURED HOME LOANS.—Notwith- to convey and to execute in the name of the Sec- ‘‘(d) UNFAIR AND DECEPTIVE PRACTICES.—In standing paragraph (1), in the case of a loan, retary, deeds of conveyance, deeds of release, connection with the purchase of a manufac- advance of credit, or purchase in connection assignments and satisfactions of mortgages, and tured home financed with a loan or extension of with a manufactured home or a lot on which to any other written instrument relating to real or credit insured by the Federal Housing Adminis- place such a home (or both), the premium personal property or any interest therein here- tration under this title, the Secretary shall pro- charge for the insurance granted under this sec- tofore or hereafter acquired by the Secretary hibit acts or practices in connection with loans tion shall be paid by the borrower under the pursuant to the provisions of this title may be or extensions of credit that the Secretary finds loan or advance of credit, as follows: exercised by an officer appointed by the Sec- to be unfair, deceptive, or otherwise not in the ‘‘(A) At the time of the making of the loan, retary without the execution of any express del- interests of the borrower.’’. advance of credit, or purchase, a single premium egation of power or power of attorney. Nothing SEC. 150. LEASEHOLD REQUIREMENTS. payment in an amount not to exceed 2.25 per- in this subsection shall be construed to prevent Subsection (b) of section 2 of the National cent of the amount of the original insured prin- the Secretary from delegating such power by Housing Act (12 U.S.C. 1703(b)), as amended by cipal obligation. order or by power of attorney, in the Secretary’s the preceding provisions of this title, is further ‘‘(B) In addition to the premium under sub- discretion, to any officer or agent the Secretary amended by adding at the end the following paragraph (A), annual premium payments dur- may appoint.’’. new paragraph:

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‘‘(11) LEASEHOLD REQUIREMENTS.—No insur- Civil Relief Act (50 U.S.C. App. 533) is amended (C) the number and percentage of homes in ance shall be granted under this section to any by striking ‘‘90 days’’ and inserting ‘‘9 months’’. default or delinquency in each State or unit of such financial institution with respect to any (2) EXTENSION OF STAY OF PROCEEDINGS PE- general local government. obligation representing any such loan, advance RIOD.—Subsection (b) of such section is amended (4) DISTRIBUTION.—Amounts appropriated or of credit, or purchase by it, made for the pur- by striking ‘‘90 days’’ and inserting ‘‘9 months’’. otherwise made available under this section poses of financing a manufactured home which (b) TREATMENT OF MORTGAGES AS OBLIGA- shall be distributed according to the funding is intended to be situated in a manufactured TIONS SUBJECT TO INTEREST RATE LIMITATION.— formula established by the Secretary under home community pursuant to a lease, unless Section 207 of the Servicemembers Civil Relief paragraph (1) not later than 30 days after the such lease— Act (50 U.S.C. App. 527) is amended— establishment of such formula. ‘‘(A) expires not less than 3 years after the (1) in subsection (a)(1), by striking ‘‘in excess (c) USE OF FUNDS.— origination date of the obligation; of 6 percent’’ the second place it appears and all (1) IN GENERAL.—Any State or unit of general ‘‘(B) is renewable upon the expiration of the that follows and inserting ‘‘in excess of 6 per- local government that receives amounts pursu- original 3 year term by successive 1 year terms; cent— ant to this section shall, not later than 18 and ‘‘(A) during the period of military service and months after the receipt of such amounts, use ‘‘(C) requires the lessor to provide the lessee one year thereafter, in the case of an obligation such amounts to purchase and redevelop aban- written notice of termination of the lease not or liability consisting of a mortgage, trust deed, doned and foreclosed homes and residential less than 180 days prior to the expiration of the or other security in the nature of a mortgage; or properties. current lease term in the event the lessee is re- ‘‘(B) during the period of military service, in (2) PRIORITY.—Any State or unit of general quired to move due to the closing of the manu- the case of any other obligation or liability.’’; local government that receives amounts pursu- factured home community, and further provides and ant to this section shall in distributing such that failure to provide such notice to the mort- (2) by striking subsection (d) and inserting the amounts give priority emphasis and consider- gagor in a timely manner will cause the lease following new subsection: ation to those metropolitan areas, metropolitan term, at its expiration, to automatically renew ‘‘(d) DEFINITIONS.—In this section: cities, urban areas, rural areas, low- and mod- for an additional 1 year term.’’. ‘‘(1) INTEREST.—The term ‘interest’ includes erate-income areas, and other areas with the TITLE II—MORTGAGE FORECLOSURE service charges, renewal charges, fees, or any greatest need, including those— PROTECTIONS FOR SERVICEMEMBERS other charges (except bona fide insurance) with (A) with the greatest percentage of home fore- respect to an obligation or liability. SEC. 201. TEMPORARY INCREASE IN MAXIMUM closures; ‘‘(2) OBLIGATION OR LIABILITY.—The term ‘ob- LOAN GUARANTY AMOUNT FOR CER- (B) with the highest percentage of homes fi- TAIN HOUSING LOANS GUARANTEED ligation or liability’ includes an obligation or li- nanced by a subprime mortgage related loan; BY THE SECRETARY OF VETERANS ability consisting of a mortgage, trust deed, or and AFFAIRS. other security in the nature of a mortgage.’’. (C) identified by the State or unit of general Notwithstanding subparagraph (C) of section (c) EFFECTIVE DATE; SUNSET.— local government as likely to face a significant 3703(a)(1) of title 38, United States Code, for (1) EFFECTIVE DATE.—The amendment made rise in the rate of home foreclosures. purposes of any loan described in subparagraph by subsection (a) shall take effect on the date of (3) ELIGIBLE USES.—Amounts made available (A)(i)(IV) of such section that is originated dur- the enactment of this Act. under this section may be used to— ing the period beginning on the date of the en- (2) SUNSET.—The amendments made by sub- (A) establish financing mechanisms for pur- actment of this Act and ending on December 31, section (a) shall expire on December 31, 2010. Ef- chase and redevelopment of foreclosed upon 2008, the term ‘‘maximum guaranty amount’’ fective January 1, 2011, the provisions of sub- homes and residential properties, including such shall mean an amount equal to 25 percent of the sections (b) and (c) of section 303 of the mechanisms as soft-seconds, loan loss reserves, higher of— Servicemembers Civil Relief Act, as in effect on and shared-equity loans for low- and moderate- (1) the limitation determined under section the day before the date of the enactment of this income homebuyers; 305(a)(2) of the Federal Home Loan Mortgage Act, are hereby revived. (B) purchase and rehabilitate homes and resi- Corporation Act (12 U.S.C. 1454(a)(2)) for the TITLE III—EMERGENCY ASSISTANCE FOR dential properties that have been abandoned or calendar year in which the loan is originated THE REDEVELOPMENT OF ABANDONED foreclosed upon, in order to sell, rent, or rede- for a single-family residence; or AND FORECLOSED HOMES velop such homes and properties; (2) 125 percent of the area median price for a SEC. 301. EMERGENCY ASSISTANCE FOR THE RE- (C) establish land banks for homes that have single-family residence, but in no case to exceed DEVELOPMENT OF ABANDONED AND been foreclosed upon; and 175 percent of the limitation determined under FORECLOSED HOMES. (D) demolish blighted structures. such section 305(a)(2) for the calendar year in (a) DIRECT APPROPRIATIONS.—There are ap- (d) LIMITATIONS.— which the loan is originated for a single-family propriated out of any money in the Treasury (1) ON PURCHASES.—Any purchase of a fore- residence. not otherwise appropriated for the fiscal year closed upon home or residential property under SEC. 202. COUNSELING ON MORTGAGE FORE- 2008, $4,000,000,000, to remain available until ex- this section shall be at a discount from the cur- CLOSURES FOR MEMBERS OF THE pended, for assistance to States and units of rent market appraised value of the home or ARMED FORCES RETURNING FROM general local government (as such terms are de- property, taking into account its current condi- SERVICE ABROAD. fined in section 102 of the Housing and Commu- tion, and such discount shall ensure that pur- (a) IN GENERAL.—The Secretary of Defense nity Development Act of 1974 (42 U.S.C. 5302)) chasers are paying below-market value for the shall develop and implement a program to ad- for the redevelopment of abandoned and fore- home or property. vise members of the Armed Forces (including closed upon homes and residential properties. (2) SALE OF HOMES.—If an abandoned or fore- members of the National Guard and Reserve) (b) ALLOCATION OF APPROPRIATED closed upon home or residential property is pur- who are returning from service on active duty AMOUNTS.— chased, redeveloped, or otherwise sold to an in- abroad (including service in Operation Iraqi (1) IN GENERAL.—The amounts appropriated dividual as a primary residence, then such sale Freedom and Operation Enduring Freedom) on or otherwise made available to States and units shall be in an amount equal to or less than the actions to be taken by such members to prevent of general local government under this section cost to acquire and redevelop or rehabilitate or forestall mortgage foreclosures. shall be allocated based on a funding formula such home or property up to a decent, safe, and (b) ELEMENTS.—The program required by sub- established by the Secretary of Housing and habitable condition. section (a) shall include the following: Urban Development (in this title referred to as (3) REINVESTMENT OF PROFITS.— (1) Credit counseling. (A) PROFITS FROM SALES, RENTALS, AND REDE- (2) Home mortgage counseling. the ‘‘Secretary’’). (3) Such other counseling and information as (2) FORMULA TO BE DEVISED SWIFTLY.—The VELOPMENT.— the Secretary considers appropriate for purposes funding formula required under paragraph (1) (i) 5-YEAR REINVESTMENT PERIOD.—During the of the program. shall be established not later than 60 days after 5-year period following the date of enactment of (c) TIMING OF PROVISION OF COUNSELING.— the date of enactment of this section. this Act, any revenue generated from the sale, Counseling and other information under the (3) CRITERIA.—The funding formula required rental, redevelopment, rehabilitation, or any program required by subsection (a) shall be pro- under paragraph (1) shall ensure that any other eligible use that is in excess of the cost to vided to a member of the Armed Forces covered amounts appropriated or otherwise made avail- acquire and redevelop (including reasonable de- by the program as soon as practicable after the able under this section are allocated to States velopment fees) or rehabilitate an abandoned or return of the member from service as described and units of general local government with the foreclosed upon home or residential property in subsection (a). greatest need, as such need is determined in the shall be provided to and used by the State or SEC. 203. ENHANCEMENT OF PROTECTIONS FOR discretion of the Secretary based on— unit of general local government in accordance SERVICEMEMBERS RELATING TO (A) the number and percentage of home fore- with, and in furtherance of, the intent and pro- MORTGAGES AND MORTGAGE FORE- closures in each State or unit of general local visions of this section. CLOSURES. government; (ii) DEPOSITS IN THE TREASURY.— (a) EXTENSION OF PERIOD OF PROTECTIONS (B) the number and percentage of homes fi- (I) PROFITS.—Upon the expiration of the 5- AGAINST MORTGAGE FORECLOSURES.— nanced by a subprime mortgage related loan in year period set forth under clause (i), any rev- (1) EXTENSION OF PROTECTION PERIOD.—Sub- each State or unit of general local government; enue generated from the sale, rental, redevelop- section (c) of section 303 of the Servicemembers and ment, rehabilitation, or any other eligible use

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NATIONWIDE DISTRIBUTION OF RE- the Treasury not otherwise appropriated for the neous receipts, unless the Secretary approves a SOURCES. fiscal year 2008, for an additional amount for request to use the funds for purposes under this Notwithstanding any other provision of this the ‘‘Neighborhood Reinvestment Corporation— Act. Act or the amendments made by this Act, each Payment to the Neighborhood Reinvestment (II) OTHER AMOUNTS.—Upon the expiration of State shall receive not less than 0.5 percent of Corporation’’ $100,000,000, to remain available the 5-year period set forth under clause (i), any funds made available under section 301 (relating until September 30, 2008, for foreclosure mitiga- other revenue not described under subclause (I) to emergency assistance for the redevelopment of tion activities under the terms and conditions generated from the sale, rental, redevelopment, abandoned and foreclosed homes). contained in the second undesignated para- rehabilitation, or any other eligible use of an graph (beginning with the phrase ‘‘For an addi- abandoned or foreclosed upon home or residen- SEC. 303. LIMITATION ON USE OF FUNDS WITH RESPECT TO EMINENT DOMAIN. tional amount’’) under the heading ‘‘Neighbor- tial property shall be deposited in the Treasury hood Reinvestment Corporation—Payment to of the United States as miscellaneous receipts. No State or unit of general local government the Neighborhood Reinvestment Corporation’’ of (B) OTHER REVENUES.—Any revenue generated may use any amounts received pursuant to sec- Public Law 110–161. tion 301 to fund any project that seeks to use under subparagraphs (A), (C) or (D) of sub- SEC. 402. CREDIT COUNSELING. the power of eminent domain, unless eminent section (c)(3) shall be provided to and used by (a) IN GENERAL.—Entities approved by the domain is employed only for a public use: Pro- the State or unit of general local government in Neighborhood Reinvestment Corporation or the vided, That for purposes of this section, public accordance with, and in furtherance of, the in- Secretary and State housing finance entities re- use shall not be construed to include economic tent and provisions of this section. ceiving funds under this title shall work to iden- development that primarily benefits private enti- (e) RULES OF CONSTRUCTION.— tify and coordinate with non-profit organiza- ties. (1) IN GENERAL.—Except as otherwise provided tions operating national or statewide toll-free by this section, amounts appropriated, revenues SEC. 304. LIMITATION ON DISTRIBUTION OF foreclosure prevention hotlines, including those generated, or amounts otherwise made available FUNDS. that— to States and units of general local government (a) IN GENERAL.—None of the funds made (1) serve as a consumer referral source and under this section shall be treated as though available under this title or title IV shall be dis- data repository for borrowers experiencing some such funds were community development block tributed to— form of delinquency or foreclosure; grant funds under title I of the Housing and (1) an organization which has been indicted (2) connect callers with local housing coun- Community Development Act of 1974 (42 U.S.C. for a violation under Federal law relating to an seling agencies approved by the Neighborhood 5301 et seq.). election for Federal office; or Reinvestment Corporation or the Secretary to (2) NO MATCH.—No matching funds shall be assist with working out a positive resolution to required in order for a State or unit of general (2) an organization which employs applicable individuals. their mortgage delinquency or foreclosure; or local government to receive any amounts under (3) facilitate or offer free assistance to help (b) APPLICABLE INDIVIDUALS DEFINED.—In this section. homeowners to understand their options, nego- this section, the term ‘‘applicable individual’’ (f) AUTHORITY TO SPECIFY ALTERNATIVE RE- tiate solutions, and find the best resolution for means an individual who— QUIREMENTS.— their particular circumstances. (1) is— (1) IN GENERAL.—In administering any TITLE V—MORTGAGE DISCLOSURE amounts appropriated or otherwise made avail- (A) employed by the organization in a perma- IMPROVEMENT ACT able under this section, the Secretary may speci- nent or temporary capacity; SEC. 501. SHORT TITLE. fy alternative requirements to any provision (B) contracted or retained by the organiza- This title may be cited as the ‘‘Mortgage Dis- under title I of the Housing and Community De- tion; or closure Improvement Act of 2008’’. velopment Act of 1974 (except for those related (C) acting on behalf of, or with the express or SEC. 502. ENHANCED MORTGAGE LOAN DISCLO- to fair housing, nondiscrimination, labor stand- apparent authority of, the organization; and ards, and the environment) in accordance with SURES. (2) has been indicted for a violation under the terms of this section and for the sole purpose (a) TRUTH IN LENDING ACT DISCLOSURES.— Federal law relating to an election for Federal of expediting the use of such funds. Section 128(b)(2) of the Truth in Lending Act (15 office. (2) NOTICE.—The Secretary shall provide writ- U.S.C. 1638(b)(2)) is amended— ten notice of its intent to exercise the authority SEC. 305. COUNSELING INTERMEDIARIES. (1) by inserting ‘‘(A)’’ before ‘‘In the’’; (2) by striking ‘‘a residential mortgage trans- to specify alternative requirements under para- Notwithstanding any other provision of this action, as defined in section 103(w)’’ and insert- graph (1) to the Committee on Banking, Housing Act, the amount appropriated under section ing ‘‘any extension of credit that is secured by and Urban Affairs of the Senate and the Com- 301(a) of this Act shall be $3,920,000,000 and the the dwelling of a consumer’’; mittee on Financial Services of the House of amount appropriated under section 401 of this (3) by striking ‘‘before the credit is extended, Representatives not later than 10 business days Act shall be $180,000,000: Provided, That of or’’; before such exercise of authority is to occur. amounts appropriated under such section 401 (4) by inserting ‘‘, which shall be at least 7 (3) LOW AND MODERATE INCOME REQUIRE- $30,000,000 shall be used by the Neighborhood business days before consummation of the trans- MENT.— Reinvestment Corporation (referred to in this action’’ after ‘‘written application’’; (A) IN GENERAL.—Notwithstanding the au- section as the ‘‘NRC’’) to make grants to coun- (5) by striking ‘‘, whichever is earlier’’; and thority of the Secretary under paragraph (1)— seling intermediaries approved by the Depart- (6) by striking ‘‘If the’’ and all that follows (i) all of the funds appropriated or otherwise ment of Housing and Urban Development or the through the end of the paragraph and inserting made available under this section shall be used NRC to hire attorneys to assist homeowners who the following: with respect to individuals and families whose have legal issues directly related to the home- ‘‘(B) In the case of an extension of credit that income does not exceed 120 percent of area me- owner’s foreclosure, delinquency or short sale. is secured by the dwelling of a consumer, the dian income; and Such attorneys shall be capable of assisting disclosures provided under subparagraph (A), (ii) not less than 25 percent of the funds ap- homeowners of owner-occupied homes with shall be in addition to the other disclosures re- propriated or otherwise made available under mortgages in default, in danger of default, or quired by subsection (a), and shall— this section shall be used for the purchase and subject to or at risk of foreclosure and who have ‘‘(i) state in conspicuous type size and format, redevelopment of abandoned or foreclosed upon legal issues that cannot be handled by coun- the following: ‘You are not required to complete homes or residential properties that will be used selors already employed by such intermediaries: this agreement merely because you have received to house individuals or families whose incomes Provided, That of the amounts provided for in these disclosures or signed a loan application.’; do not exceed 50 percent of area median income. the prior provisos the NRC shall give priority and (B) RECURRENT REQUIREMENT.—The Secretary consideration to counseling intermediaries and ‘‘(ii) be provided in the form of final disclo- shall, by rule or order, ensure, to the maximum legal organizations that (1) provide legal assist- sures at the time of consummation of the trans- extent practicable and for the longest feasible ance in the 100 metropolitan statistical areas (as action, in the form and manner prescribed by term, that the sale, rental, or redevelopment of defined by the Director of the Office of Manage- this section. abandoned and foreclosed upon homes and resi- ment and Budget) with the highest home fore- ‘‘(C) In the case of an extension of credit that dential properties under this section remain af- closure rates, and (2) have the capacity to begin is secured by the dwelling of a consumer, under fordable to individuals or families described in using the financial assistance within 90 days which the annual rate of interest is variable, or subparagraph (A). after receipt of the assistance: Provided further, with respect to which the regular payments may (g) PERIODIC AUDITS.—In consultation with That no funds provided under this Act shall be otherwise be variable, in addition to the other the Secretary of Housing and Urban Develop- used to provide, obtain, or arrange on behalf of disclosures required by subsection (a), the dis- ment, the Comptroller General of the United a homeowner, legal representation involving or closures provided under this subsection shall do States shall conduct periodic audits to ensure for the purposes of civil litigation. the following:

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‘‘(i) Label the payment schedule as follows: (2) VARIABLE INTEREST RATES.—Subparagraph ‘‘(3) ADDITIONAL ADJUSTMENTS.—For purposes ‘Payment Schedule: Payments Will Vary Based (C) of section 128(b)(2) of the Truth in Lending of paragraph (1)(A), in the case of an eligible on Interest Rate Changes’. Act (15 U.S.C. 1638(b)(2)(C)), as added by sub- taxpayer (within the meaning of section ‘‘(ii) State in conspicuous type size and format section (a) of this section, shall become effective 168(k)(4)), the amount described in subclause (I) examples of adjustments to the regular required on the earlier of— of paragraph (1)(A)(ii) shall be increased by the payment on the extension of credit based on the (A) the compliance date established by the amount of the net operating loss deduction al- change in the interest rates specified by the con- Board for such purpose, by regulation; or lowable for the taxable year under section 172 tract for such extension of credit. Among the ex- (B) 30 months after the date of enactment of attributable to the sum of— amples required to be provided under this clause this Act. ‘‘(A) carrybacks of net operating losses from is an example that reflects the maximum pay- SEC. 503. COMMUNITY DEVELOPMENT INVEST- taxable years ending during 2008 and 2009, and ment amount of the regular required payments MENT AUTHORITY FOR DEPOSITORY ‘‘(B) carryovers of net operating losses to tax- on the extension of credit, based on the max- INSTITUTIONS. able years ending during 2008 or 2009.’’. imum interest rate allowed under the contract, (a) DEPOSITORY INSTITUTION COMMUNITY DE- (B) CONFORMING AMENDMENT.—Subclause (I) in accordance with the rules of the Board. Prior VELOPMENT INVESTMENTS.— of section 56(d)(1)(A)(i) of such Code is amended to issuing any rules pursuant to this clause, the (1) NATIONAL BANKS.—The first sentence of by inserting ‘‘amount of such’’ before ‘‘deduc- Board shall conduct consumer testing to deter- the paragraph designated as the ‘‘Eleventh’’ of tion described in clause (ii)(I)’’. mine the appropriate format for providing the section 5136 of the Revised Statutes of the (3) EFFECTIVE DATES.— disclosures required under this subparagraph to United States (12 U.S.C. 24) (as amended by sec- (A) NET OPERATING LOSSES.—The amendments consumers so that such disclosures can be easily tion 305(a) of the Financial Services Regulatory made by paragraph (1) shall apply to net oper- understood. Relief Act of 2006) is amended by striking ‘‘pro- ating losses arising in taxable years ending in ‘‘(D) In any case in which the disclosure motes the public welfare by benefitting pri- 2008 or 2009. (B) SUSPENSION OF AMT LIMITATION.—The statement under subparagraph (A) contains an marily’’ and inserting ‘‘is designed primarily to amendments made by paragraph (2) shall apply annual percentage rate of interest that is no promote the public welfare, including the wel- to taxable years ending after December 31, 1997. longer accurate, as determined under section fare of’’. (4) ANTI-ABUSE RULES.—The Secretary of 107(c), the creditor shall furnish an additional, (2) STATE MEMBER BANKS.—The first sentence Treasury or the Secretary’s designee shall pre- corrected statement to the borrower, not later of the 23rd paragraph of section 9 of the Federal scribe such rules as are necessary to prevent the than 3 business days before the date of con- Reserve Act (12 U.S.C. 338a) is amended by abuse of the purposes of the amendments made summation of the transaction. striking ‘‘promotes the public welfare by benefit- by this subsection, including anti-stuffing rules, ‘‘(E) The consumer shall receive the disclo- ting primarily’’ and inserting ‘‘is designed pri- anti-churning rules (including rules relating to sures required under this paragraph before pay- marily to promote the public welfare, including sale-leasebacks), and rules similar to the rules ing any fee to the creditor or other person in the welfare of’’. under section 1091 of the Internal Revenue Code connection with the consumer’s application for SEC. 504. FEDERAL HOME LOAN BANK REFI- an extension of credit that is secured by the of 1986 relating to losses from wash sales. NANCING AUTHORITY FOR CERTAIN (b) ELECTION AMONG STIMULUS INCENTIVES.— dwelling of a consumer. If the disclosures are RESIDENTIAL MORTGAGE LOANS. (1) IN GENERAL.— mailed to the consumer, the consumer is consid- Section 10(j)(2) of the Federal Home Loan (A) BONUS DEPRECIATION.—Section 168(k) of ered to have received them 3 business days after Bank Act (12 U.S.C. 1430(j)(2) is amended— the Internal Revenue Code of 1986 (relating to they are mailed. A creditor or other person may (1) in subparagraph (A), by striking ‘‘or’’ at special allowance for certain property acquired impose a fee for obtaining the consumer’s credit the end; after December 31, 2007, and before January 1, report before the consumer has received the dis- (2) in subparagraph (B), by striking the period 2009), as amended by the Economic Stimulus Act closures under this paragraph, provided the fee at the end and inserting ‘‘; or’’; and of 2008, is amended— is bona fide and reasonable in amount. (3) by adding at the end the following: (i) in paragraph (1), by inserting ‘‘placed in ‘‘(F) WAIVER OF TIMELINESS OF DISCLO- ‘‘(C) during the 2-year period beginning on service by an eligible taxpayer’’ after ‘‘any SURES.—To expedite consummation of a trans- the date of enactment of this subparagraph, re- qualified property’’, and action, if the consumer determines that the ex- finance loans that are secured by a first mort- (ii) by adding at the end the following new tension of credit is needed to meet a bona fide gage on a primary residence of any family hav- paragraph: personal financial emergency, the consumer may ing an income at or below 80 percent of the me- ‘‘(4) ELIGIBLE TAXPAYER.— waive or modify the timing requirements for dis- dian income for the area.’’. ‘‘(A) IN GENERAL.—At such time and in such closures under subparagraph (A), provided TITLE VI—TAX-RELATED PROVISIONS manner as the Secretary shall prescribe, each that— taxpayer may elect to be an eligible taxpayer ‘‘(i) the term ‘bona fide personal emergency’ SEC. 601. ELECTION FOR 4-YEAR CARRYBACK OF with respect to 1 (and only 1) of the following: may be further defined in regulations issued by CERTAIN NET OPERATING LOSSES AND TEMPORARY SUSPENSION OF 90 ‘‘(i) This subsection and section 179(b)(7). the Board; PERCENT AMT LIMIT. ‘‘(ii) The application of section ‘‘(ii) the consumer provides to the creditor a 56(d)(1)(A)(ii)(I) and section 172(b)(1)(H)(ii) in (a) IN GENERAL.— dated, written statement describing the emer- (1) 4-YEAR CARRYBACK OF CERTAIN LOSSES.— connection with net operating losses relating to gency and specifically waiving or modifying Subparagraph (H) of section 172(b)(1) of the In- taxable years ending during 2008 and 2009. those timing requirements, which statement ‘‘(B) ELIGIBLE TAXPAYER.—For purposes of ternal Revenue Code of 1986 (relating to years to shall bear the signature of all consumers enti- each of the provisions described in subpara- which loss may be carried) is amended to read tled to receive the disclosures required by this graph (A), a taxpayer shall only be treated as as follows: paragraph; and an eligible taxpayer with respect to the provi- ‘‘(H) ADDITIONAL CARRYBACK OF CERTAIN ‘‘(iii) the creditor provides to the consumers at sion with respect to which the taxpayer made LOSSES.— or before the time of such waiver or modifica- the election under subparagraph (A). ‘‘(i) TAXABLE YEARS ENDING DURING 2001 AND tion, the final disclosures required by paragraph ‘‘(C) ELECTION IRREVOCABLE.—An election 2002.—In the case of a net operating loss for any (1). under subparagraph (A) may not be revoked ex- taxable year ending during 2001 or 2002, sub- ‘‘(G) The requirements of subparagraphs (B), cept with the consent of the Secretary.’’. paragraph (A)(i) shall be applied by sub- (C), (D) and (E) shall not apply to extensions of (B) EFFECTIVE DATE.—The amendments made credit relating to plans described in section stituting ‘5’ for ‘2’ and subparagraph (F) shall by this paragraph shall take effect as if in- 101(53D) of title 11, United States Code.’’. not apply. cluded in section 103 of the Economic Stimulus ‘‘(ii) TAXABLE YEARS ENDING DURING 2008 AND (b) CIVIL LIABILITY.—Section 130(a) of the Act of 2008. Truth in Lending Act (15 U.S.C. 1640(a)) is 2009.—In the case of a net operating loss with re- (2) ELECTION FOR INCREASED EXPENSING.— amended— spect to any eligible taxpayer (within the mean- (A) IN GENERAL.—Paragraph (7) of section (1) in paragraph (2)(A)(iii), by striking ‘‘not ing of section 168(k)(4)) for any taxable year 179(b) of the Internal Revenue Code of 1986 (re- less than $200 or greater than $2,000’’ and in- ending during 2008 or 2009— lating to limitations), as added by the Economic serting ‘‘not less than $400 or greater than ‘‘(I) subparagraph (A)(i) shall be applied by Stimulus Act of 2008, is amended to read as fol- $4,000’’; and substituting ‘4’ for ‘2’, lows: (2) in the penultimate sentence of the undesig- ‘‘(II) subparagraph (E)(ii) shall be applied by ‘‘(7) SPECIAL RULE FOR ELIGIBLE TAXPAYERS IN nated matter following paragraph (4)— substituting ‘3’ for ‘2’, and 2008.—In the case of any taxable year of any eli- (A) by inserting ‘‘or section 128(b)(2)(C)(ii),’’ ‘‘(III) subparagraph (F) shall not apply.’’. gible taxpayer (within the meaning of section after ‘‘128(a),’’; and (2) TEMPORARY SUSPENSION OF 90 PERCENT 168(k)(4)) beginning in 2008— (B) by inserting ‘‘or section 128(b)(2)(C)(ii)’’ LIMIT ON CERTAIN NOL CARRYBACKS AND ‘‘(A) the dollar limitation under paragraph (1) before the period. CARRYOVERS.— shall be $250,000, (c) EFFECTIVE DATES.— (A) IN GENERAL.—Section 56(d) of the Internal ‘‘(B) the dollar limitation under paragraph (2) (1) GENERAL DISCLOSURES.—Except as pro- Revenue Code of 1986 (relating to definition of shall be $800,000, and vided in paragraph (2), the amendments made alternative tax net operating loss deduction) is ‘‘(C) the amounts described in subparagraphs by subsection (a) shall become effective 12 amended by adding at the end the following (A) and (B) shall not be adjusted under para- months after the date of enactment of this Act. new paragraph: graph (5).’’.

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(B) EFFECTIVE DATE.—The amendment made ‘‘(i) IN GENERAL.—Any amount of the State ‘‘(2) ALLOCATION OF CREDIT AMOUNT.—The by this paragraph shall take effect as if in- ceiling for any State which is attributable to an amount of the credit allowed under paragraph cluded in section 102 of the Economic Stimulus increase under this paragraph shall be allocated (1) shall be equally divided among the 2 taxable Act of 2008. solely for one or more qualified purposes. years beginning with the taxable year in which SEC. 602. MODIFICATIONS ON USE OF QUALIFIED ‘‘(ii) QUALIFIED PURPOSE.—For purposes of the purchase of the qualified principal residence MORTGAGE BONDS; TEMPORARY IN- this paragraph, the term ‘qualified purpose’ is made. CREASED VOLUME CAP FOR CER- means— ‘‘(b) LIMITATIONS.— TAIN HOUSING BONDS. ‘‘(I) the issuance of exempt facility bonds used ‘‘(1) DATE OF PURCHASE.—The credit allowed (a) USE OF QUALIFIED MORTGAGE BONDS PRO- solely to provide qualified residential rental under subsection (a) shall be allowed only with CEEDS FOR SUBPRIME REFINANCING LOANS.—Sec- projects, or respect to purchases made— tion 143(k) of the Internal Revenue Code of 1986 ‘‘(II) a qualified mortgage issue (determined ‘‘(A) after the date of the enactment of this (relating to other definitions and special rules) by substituting ‘12-month period’ for ‘42-month section, and is amended by adding at the end the following period’ each place it appears in section ‘‘(B) before the date that is 12 months after new paragraph: 143(a)(2)(D)(i)).’’. such date. ‘‘(12) SPECIAL RULES FOR SUBPRIME (2) CARRYFORWARD OF UNUSED LIMITATIONS.— ‘‘(2) LIMITATION BASED ON AMOUNT OF TAX.— REFINANCINGS.— Subsection (f) of section 146 of such Code (relat- In the case of a taxable year to which section ‘‘(A) IN GENERAL.—Notwithstanding the re- ing to elective carryforward of unused limitation 26(a)(2) does not apply, the credit allowed under quirements of subsection (i)(1), the proceeds of a for specified purpose) is amended by adding at subsection (a) for any taxable year shall not ex- qualified mortgage issue may be used to refi- the end the following new paragraph: ceed the excess of— nance a mortgage on a residence which was ‘‘(6) SPECIAL RULES FOR INCREASED VOLUME ‘‘(A) the sum of the regular tax liability (as originally financed by the mortgagor through a CAP UNDER SUBSECTION (d)(5).— defined in section 26(b)) plus the tax imposed by qualified subprime loan. ‘‘(A) IN GENERAL.—No amount which is attrib- section 55, over ‘‘(B) SPECIAL RULES.—In applying this para- utable to the increase under subsection (d)(5) ‘‘(B) the sum of the credits allowable under graph to any case in which the proceeds of a may be used— this subpart (other than this section and section qualified mortgage issue are used for any refi- ‘‘(i) for a carryforward purpose other than a 23) for the taxable year. nancing described in subparagraph (A)— qualified purpose (as defined in subsection ‘‘(3) ONE-TIME ONLY.— ‘‘(i) subsection (a)(2)(D)(i) (relating to pro- (d)(5)), and ‘‘(A) IN GENERAL.—If a credit is allowed under ceeds must be used within 42 months of date of ‘‘(ii) to issue any bond after calendar year this section in the case of any individual (and issuance) shall be applied by substituting ‘12- 2010. such individual’s spouse, if married) with re- month period’ for ‘42-month period’ each place ‘‘(B) ORDERING RULES.—For purposes of sub- spect to the purchase of any qualified principal it appears, paragraph (A), any carryforward of an issuing residence, no credit shall be allowed under this ‘‘(ii) subsection (d) (relating to 3-year require- authority’s volume cap for calendar year 2008 section in any taxable year with respect to the ment) shall not apply, and shall be treated as attributable to such increase purchase of any other qualified principal resi- ‘‘(iii) subsection (e) (relating to purchase price to the extent of such increase.’’. dence by such individual or a spouse of such in- requirement) shall be applied by using the mar- (c) ALTERNATIVE MINIMUM TAX EXEMPTION dividual. ket value of the residence at the time of refi- FOR QUALIFIED MORTGAGE BONDS, QUALIFIED ‘‘(B) JOINT PURCHASE.—In the case of a pur- nancing in lieu of the acquisition cost. VETERANS’ MORTGAGE BONDS, AND BONDS FOR chase of a qualified principal residence by 2 or ‘‘(C) QUALIFIED SUBPRIME LOAN.—The term QUALIFIED RESIDENTIAL RENTAL PROJECTS.— more unmarried individuals or by 2 married in- ‘qualified subprime loan’ means an adjustable (1) IN GENERAL.—Clause (ii) of section dividuals filing separately, no credit shall be al- rate single-family residential mortgage loan 57(a)(5)(C) of the Internal Revenue Code of 1986 lowed under this section if a credit under this originated after December 31, 2001, and before (relating to specified private activity bonds) is section has been allowed to any of such individ- January 1, 2008, that the bond issuer determines amended by striking ‘‘shall not include’’ and all uals in any taxable year with respect to the pur- would be reasonably likely to cause financial that follows and inserting ‘‘shall not include— chase of any other qualified principal residence. hardship to the borrower if not refinanced. ‘‘(I) any qualified 501(c)(3) bond (as defined ‘‘(c) QUALIFIED PRINCIPAL RESIDENCE.—For ‘‘(D) TERMINATION.—This paragraph shall not in section 145), or purposes of this section— apply to any bonds issued after December 31, ‘‘(II) any qualified mortgage bond (as defined ‘‘(1) IN GENERAL.—The term ‘qualified prin- 2010.’’. in section 143(a)), any qualified veterans’ mort- cipal residence’ means an eligible single-family (b) INCREASED VOLUME CAP FOR CERTAIN gage bond (as defined in section 143(b)), or any residence that is purchased to be the principal BONDS.— exempt facility bond (as defined in section residence of the purchaser. (1) IN GENERAL.—Subsection (d) of section 146 142(a)) issued as part of an issue 95 percent or ‘‘(2) ELIGIBLE SINGLE-FAMILY RESIDENCE.— of the Internal Revenue Code of 1986 (relating to more of the net proceeds of which are to be used ‘‘(A) IN GENERAL.—The term ‘eligible single- State ceiling) is amended by adding at the end to provide qualified residential rental projects family residence’ means a single-family struc- the following new paragraph: (as defined in section 142(d)), but only if such ture that is a residence— ‘‘(i) upon which foreclosure has been filed ‘‘(5) INCREASE AND SET ASIDE FOR HOUSING bond is issued after the date of the enactment of pursuant to the laws of the State in which the BONDS FOR 2008.— this subclause and before January 1, 2011. residence is located, and ‘‘(A) INCREASE FOR 2008.—In the case of cal- Subclause (II) shall not apply to a refunding ‘‘(ii) which— endar year 2008, the State ceiling for each State bond unless such subclause applied to the re- ‘‘(I) is a new previously unoccupied residence shall be increased by an amount equal to the funded bond (or in the case of a series of for which a building permit was issued and con- greater of— refundings, the original bond).’’. struction began on or before September 1, 2007, ‘‘(i) $10,000,000,000 multiplied by a fraction— (2) CONFORMING AMENDMENT.—The heading or ‘‘(I) the numerator of which is the population for section 57(a)(5)(C)(ii) of such Code is amend- ‘‘(II) was occupied as a principal residence by of such State, and ed by striking ‘‘QUALIFIED 501(c)(3) BONDS’’ and the mortgagor for at least 1 year prior to the ‘‘(II) the denominator of which is the total inserting ‘‘CERTAIN BONDS’’. foreclosure filing. population of all States, or (d) EFFECTIVE DATE.—The amendments made ‘‘(B) CERTIFICATION.—In the case of an eligi- ‘‘(ii) the amount determined under subpara- by this section shall apply to bonds issued after ble single-family residence described in subpara- graph (B). the date of the enactment of this Act. graph (A)(ii)(I), no credit shall be allowed under INIMUM AMOUNT.—The amount deter- ‘‘(B) M SEC. 603. CREDIT FOR CERTAIN HOME PUR- this section unless the purchaser submits a cer- mined under this subparagraph is— CHASES. tification by the seller of such residence that ‘‘(i) in the case of a State (other than a pos- (a) ALLOWANCE OF CREDIT.—Subpart A of such residence meets the requirements of such session), $90,300,606, and part IV of subchapter A of chapter 1 of the In- subparagraph. ‘‘(ii) in the case of a possession of the United ternal Revenue Code of 1986 (relating to non- ‘‘(3) PRINCIPAL RESIDENCE.—The term ‘prin- States with a population less than the least pop- refundable personal credits) is amended by in- cipal residence’ has the same meaning as when ulous State (other than a possession), the prod- serting after section 25D the following new sec- used in section 121. uct of— tion: ‘‘(d) DENIAL OF DOUBLE BENEFIT.—No credit ‘‘(I) a fraction the numerator of which is ‘‘SEC. 25E. CREDIT FOR CERTAIN HOME PUR- shall be allowed under this section for any pur- $90,300,606 and the denominator of which is CHASES. chase for which a credit is allowed under sec- population of the least populous State (other ‘‘(a) ALLOWANCE OF CREDIT.— tion 1400C. than a possession), and ‘‘(1) IN GENERAL.—In the case of an individual ‘‘(e) RECAPTURE IN THE CASE OF CERTAIN DIS- ‘‘(II) the population of such possession. who is a purchaser of a qualified principal resi- POSITIONS.—In the event that a taxpayer— In the case of any possession of the United dence during the taxable year, there shall be al- ‘‘(1) disposes of the qualified principal resi- States not described in clause (ii), the amount lowed as a credit against the tax imposed by this dence with respect to which a credit is allowed determined under this subparagraph shall be chapter an amount equal to so much of the pur- under subsection (a), or zero. chase price of the residence as does not exceed ‘‘(2) fails to occupy such residence as the tax- ‘‘(C) SET ASIDE.— $7,000. payer’s principal residence,

VerDate Mar 15 2010 15:08 Nov 08, 2010 Jkt 069102 PO 00000 Frm 00021 Fmt 0688 Sfmt 6333 E:\BR08\H08MY8.000 H08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD May 8, 2008 CONGRESSIONAL RECORD—HOUSE, Vol. 154, Pt. 6 8165 at any time within 24 months after the date on SEC. 604. ADDITIONAL STANDARD DEDUCTION paragraph (A) and clauses (i) and (ii) of sub- which the taxpayer purchased such residence, FOR REAL PROPERTY TAXES FOR paragraph (E) thereof, then the remaining portion of the credit allowed NONITEMIZERS. ‘‘(II) only adjusted basis attributable to man- under subsection (a) shall be disallowed in the (a) IN GENERAL.—Section 63(c)(1) of the Inter- ufacture, construction, or production after taxable year during which such disposition oc- nal Revenue Code of 1986 (defining standard de- March 31, 2008, and before January 1, 2009, curred or in which the taxpayer failed to occupy duction) is amended by striking ‘‘and’’ at the shall be taken into account under subparagraph the residence as a principal residence, and in end of subparagraph (A), by striking the period (B)(ii) thereof, and any subsequent taxable year in which the re- at the end of subparagraph (B) and inserting ‘‘, ‘‘(III) in the case of property which is a pas- maining portion of the credit would, but for this and’’, and by adding at the end the following senger aircraft, the written binding contract subsection, have been allowed. new subparagraph: limitation under subparagraph (A)(iii)(I) thereof ‘‘(C) in the case of any taxable year beginning ‘‘(f) SPECIAL RULES.— shall not apply. in 2008, the real property tax deduction.’’. ‘‘(1) JOINT PURCHASE.— ‘‘(iii) MAXIMUM AMOUNT.—The bonus depre- (b) DEFINITION.—Section 63(c) of the Internal ciation amount for any applicable taxable year ‘‘(A) MARRIED INDIVIDUALS FILING SEPA- Revenue Code of 1986 is amended by adding at RATELY.—In the case of 2 married individuals shall not exceed the applicable limitation under the end the following new paragraph: clause (iv), reduced (but not below zero) by the filing separately, subsection (a) shall be applied ‘‘(8) REAL PROPERTY TAX DEDUCTION.— bonus depreciation amount for any preceding to each such individual by substituting ‘$3,500’ ‘‘(A) IN GENERAL.—For purposes of paragraph taxable year. for ‘$7,000’ in paragraph (1) thereof. (1), the real property tax deduction is so much ‘‘(iv) APPLICABLE LIMITATION.—For purposes ‘‘(B) UNMARRIED INDIVIDUALS.—If 2 or more of the amount of the eligible State and local real of clause (iii), the term ‘applicable limitation’ individuals who are not married purchase a property taxes paid or accrued by the taxpayer means, with respect to any eligible taxpayer, the qualified principal residence, the amount of the during the taxable year which do not exceed lesser of— credit allowed under subsection (a) shall be allo- $500 ($1,000 in the case of a joint return). ‘‘(I) $40,000,000, or cated among such individuals in such manner ‘‘(B) ELIGIBLE STATE AND LOCAL REAL PROP- ‘‘(II) 10 percent of the sum of the amounts de- as the Secretary may prescribe, except that the ERTY TAXES.—For purposes of subparagraph termined with respect to the eligible taxpayer total amount of the credits allowed to all such (A), the term ‘eligible State and local real prop- under clauses (ii) and (iii) of subparagraph (D). individuals shall not exceed $7,000. erty taxes’ means State and local real property ‘‘(v) AGGREGATION RULE.—All corporations ‘‘(2) PURCHASE; PURCHASE PRICE.—Rules simi- taxes (within the meaning of section 164), but which are treated as a single employer under lar to the rules of paragraphs (2) and (3) of sec- only if the rate of tax for all residential real section 52(a) shall be treated as 1 taxpayer for tion 1400C(e) (as in effect on the date of the en- property taxes in the jurisdiction has not been purposes of applying the limitation under this actment of this section) shall apply for purposes increased at any time after April 2, 2008, and be- subparagraph and determining the applicable of this section. fore January 1, 2009.’’. limitation under clause (iv). ‘‘(3) REPORTING REQUIREMENT.—Rules similar (c) EFFECTIVE DATE.—The amendments made ‘‘(D) ALLOCATION OF BONUS DEPRECIATION to the rules of section 1400C(f) (as so in effect) by this section shall apply to taxable years be- AMOUNTS.— shall apply for purposes of this section. ginning after December 31, 2007. ‘‘(i) IN GENERAL.—Subject to clauses (ii) and ‘‘(g) BASIS ADJUSTMENT.—For purposes of this SEC. 605. ELECTION TO ACCELERATE AMT AND R (iii), the taxpayer shall, at such time and in subtitle, if a credit is allowed under this section AND D CREDITS IN LIEU OF BONUS such manner as the Secretary may prescribe, with respect to the purchase of any residence, DEPRECIATION. specify the portion (if any) of the bonus depre- the basis of such residence shall be reduced by (a) IN GENERAL.—Section 168(k), as amended ciation amount which is to be allocated to each the amount of the credit so allowed.’’. by this Act, is amended by adding at the end the of the limitations described in subparagraph (b) CONFORMING AMENDMENTS.— following new paragraph: ‘‘(5) ELECTION TO ACCELERATE AMT AND R AND (B). (1) Section 24(b)(3)(B) of the Internal Revenue ‘‘(ii) BUSINESS CREDIT LIMITATION.—The por- Code of 1986 is amended by striking ‘‘and 25B’’ D CREDITS IN LIEU OF BONUS DEPRECIATION.— ‘‘(A) IN GENERAL.—If a corporation which is tion of the bonus depreciation amount allocated and inserting ‘‘, 25B, and 25E’’. an eligible taxpayer (within the meaning of to the limitation described in subparagraph (2) Section 25(e)(1)(C)(ii) of such Code is paragraph (4)) for purposes of this subsection (B)(i) shall not exceed an amount equal to the amended by inserting ‘‘25E,’’ after ‘‘25D,’’. elects to have this paragraph apply— portion of the credit allowable under section 38 (3) Section 25B(g)(2) of such Code is amended ‘‘(i) no additional depreciation shall be al- for the taxable year which is allocable to busi- by striking ‘‘section 23’’ and inserting ‘‘sections lowed under paragraph (1) for any qualified ness credit carryforwards to such taxable year 23 and 25E’’. property placed in service during any taxable which are— (4) Section 25D(c)(2) of such Code is amended year to which paragraph (1) would otherwise ‘‘(I) from taxable years beginning before Janu- by striking ‘‘and 25B’’ and inserting ‘‘25B, and apply, and ary 1, 2006, and 25E’’. ‘‘(ii) the limitations described in subparagraph ‘‘(II) properly allocable (determined under the (5) Section 26(a)(1) of such Code is amended (B) for such taxable year shall be increased by rules of section 38(d)) to the research credit de- by striking ‘‘and 25B’’ and inserting ‘‘25B, and an aggregate amount not in excess of the bonus termined under section 41(a). 25E’’. depreciation amount for such taxable year. ‘‘(iii) ALTERNATIVE MINIMUM TAX CREDIT LIMI- (6) Section 904(i) of such Code is amended by ‘‘(B) LIMITATIONS TO BE INCREASED.—The lim- TATION.—The portion of the bonus depreciation striking ‘‘and 25B’’ and inserting ‘‘25B, and itations described in this subparagraph are— amount allocated to the limitation described in 25E’’. ‘‘(i) the limitation under section 38(c), and subparagraph (B)(ii) shall not exceed an (7) Subsection (a) of section 1016 of such Code ‘‘(ii) the limitation under section 53(c). amount equal to the portion of the minimum tax is amended by striking ‘‘and’’ at the end of ‘‘(C) BONUS DEPRECIATION AMOUNT.—For pur- credit allowable under section 53 for the taxable paragraph (36), by striking the period at the end poses of this paragraph— year which is allocable to the adjusted minimum of paragraph (37) and inserting ‘‘, and’’, and by ‘‘(i) IN GENERAL.—The bonus depreciation tax imposed for taxable years beginning before adding at the end the following new paragraph: amount for any applicable taxable year is an January 1, 2006. ‘‘(38) to the extent provided in section amount equal to the product of 20 percent and ‘‘(E) CREDIT REFUNDABLE.—Any aggregate in- 25E(g).’’. the excess (if any) of— creases in the credits allowed under section 38 or (8) Section 1400C(d)(2) of such Code is amend- ‘‘(I) the aggregate amount of depreciation 53 by reason of this paragraph shall, for pur- ed by striking ‘‘and 25D’’ and inserting ‘‘25D, which would be determined under this section poses of this title, be treated as a credit allowed and 25E’’. for property placed in service during the taxable to the taxpayer under subpart C of part IV of (c) CLERICAL AMENDMENT.—The table of sec- year if no election under this paragraph were subchapter A. tions for subpart A of part IV of subchapter A made, over ‘‘(F) OTHER RULES.— of chapter 1 of the Internal Revenue Code of ‘‘(II) the aggregate amount of depreciation al- ‘‘(i) ELECTION.—Any election under this para- 1986 is amended by inserting after the item relat- lowable under this section for property placed in graph (including any allocation under subpara- ing to section 25D the following new item: service during the taxable year. graph (D)) may be revoked only with the con- In the case of property which is a passenger air- sent of the Secretary. ‘‘Sec. 25E. Credit for certain home purchases.’’. craft, the amount determined under subclause ‘‘(ii) DEDUCTION ALLOWED IN COMPUTING MIN- (d) EFFECTIVE DATE.—The amendments made (I) shall be calculated without regard to the IMUM TAX.—Notwithstanding this paragraph, by this section shall apply to purchases in tax- written binding contract limitation under para- paragraph (2)(G) shall apply with respect to the able years ending after the date of the enact- graph (2)(A)(iii)(I). deduction computed under this section (after ment of this Act. ‘‘(ii) ELIGIBLE QUALIFIED PROPERTY.—For application of this paragraph) with respect to (e) APPLICATION OF EGTRRA SUNSET.—The purposes of clause (i), the term ‘eligible qualified property placed in service during any applicable amendment made by subsection (b)(1) shall be property’ means qualified property under para- taxable year.’’. subject to title IX of the Economic Growth and graph (2), except that in applying paragraph (2) (b) EFFECTIVE DATE.—The amendments made Tax Relief Reconciliation Act of 2001 in the for purposes of this clause— by this section shall apply to property placed in same manner as the provisions of such Act to ‘‘(I) ‘March 31, 2008’ shall be substituted for service after December 31, 2007, in taxable years which such amendment relates. ‘December 31, 2007’ each place it appears in sub- ending after such date.

VerDate Mar 15 2010 15:08 Nov 08, 2010 Jkt 069102 PO 00000 Frm 00022 Fmt 0688 Sfmt 6333 E:\BR08\H08MY8.000 H08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD 8166 CONGRESSIONAL RECORD—HOUSE, Vol. 154, Pt. 6 May 8, 2008 SEC. 606. USE OF AMENDED INCOME TAX RE- of the May 4, 2007, storms and tornados’’ for gust 25, 2005, and before January 1, 2007’’ in TURNS TO TAKE INTO ACCOUNT RE- ‘‘on or after August 25, 2005, by reason of Hurri- subsection (a)(4)(A)(i), CEIPT OF CERTAIN HURRICANE-RE- cane Katrina’’. (C) by substituting ‘‘qualified storm distribu- LATED CASUALTY LOSS GRANTS BY (3) EMPLOYEE RETENTION CREDIT FOR EMPLOY- tion’’ for ‘‘qualified Katrina distribution’’ each DISALLOWING PREVIOUSLY TAKEN CASUALTY LOSS DEDUCTIONS. ERS AFFECTED BY MAY 4 STORMS AND TOR- place it appears, (a) IN GENERAL.—Notwithstanding any other NADOS.—Section 1400R(a) of the Internal Rev- (D) by substituting ‘‘after November 4, 2006, provision of the Internal Revenue Code of 1986, enue Code of 1986— and before May 5, 2007’’ for ‘‘after February 28, if a taxpayer claims a deduction for any taxable (A) by substituting ‘‘May 4, 2007’’ for ‘‘August 2005, and before August 29, 2005’’ in subsection year with respect to a casualty loss to a per- 28, 2005’’ each place it appears, (b)(2)(B)(ii), sonal residence (within the meaning of section (B) by substituting ‘‘January 1, 2008’’ for (E) by substituting ‘‘beginning on May 4, 121 of such Code) resulting from Hurricane ‘‘January 1, 2006’’ both places it appears, and 2007, and ending on November 5, 2007’’ for ‘‘be- Katrina, Hurricane Rita, or Hurricane Wilma (C) only with respect to eligible employers who ginning on August 25, 2005, and ending on Feb- and in a subsequent taxable year receives a employed an average of not more than 200 em- ruary 28, 2006’’ in subsection (b)(3)(A), grant under Public Law 109–148, 109–234, or 110– ployees on business days during the taxable (F) by substituting ‘‘qualified storm indi- 116 as reimbursement for such loss, such tax- year before May 4, 2007. vidual’’ for ‘‘qualified Hurricane Katrina indi- payer may elect to file an amended income tax (4) SPECIAL ALLOWANCE FOR CERTAIN PROP- vidual’’ each place it appears, return for the taxable year in which such de- ERTY ACQUIRED ON OR AFTER MAY 5, 2007.—Sec- (G) by substituting ‘‘December 31, 2007’’ for duction was allowed and disallow such deduc- tion 1400N(d) of such Code— ‘‘December 31, 2006’’ in subsection (c)(2)(A), tion. If elected, such amended return must be (A) by substituting ‘‘qualified Recovery As- (H) by substituting ‘‘beginning on June 4, filed not later than the due date for filing the sistance property’’ for ‘‘qualified Gulf Oppor- 2007, and ending on December 31, 2007’’ for ‘‘be- tax return for the taxable year in which the tax- tunity Zone property’’ each place it appears, ginning on September 24, 2005, and ending on payer receives such reimbursement or the date (B) by substituting ‘‘May 5, 2007’’ for ‘‘August December 31, 2006’’ in subsection (c)(4)(A)(i), that is 4 months after the date of the enactment 28, 2005’’ each place it appears, (I) by substituting ‘‘May 4, 2007’’ for ‘‘August of this Act, whichever is later. Any increase in (C) by substituting ‘‘December 31, 2008’’ for 25, 2005’’ in subsection (c)(4)(A)(ii), and Federal income tax resulting from such dis- ‘‘December 31, 2007’’ in paragraph (2)(A)(v), (J) by substituting ‘‘January 1, 2008’’ for allowance if such amended return is filed— (D) by substituting ‘‘December 31, 2009’’ for ‘‘January 1, 2007’’ in subsection (d)(2)(A)(ii). (1) shall be subject to interest on the under- ‘‘December 31, 2008’’ in paragraph (2)(A)(v), (b) EMERGENCY DESIGNATION.—For purposes paid tax for one year at the underpayment rate (E) by substituting ‘‘May 4, 2007’’ for ‘‘August of Senate enforcement, all provisions of this sec- determined under section 6621(a)(2) of such 27, 2005’’ in paragraph (3)(A), tion are designated as emergency requirements Code; and (F) by substituting ‘‘January 1, 2009’’ for and necessary to meet emergency needs pursu- (2) shall not be subject to any penalty under ‘‘January 1, 2008’’ in paragraph (3)(B), and ant to section 204 of S. Con. Res. 21 (110th Con- such Code. (G) determined without regard to paragraph gress), the concurrent resolution on the budget (b) EMERGENCY DESIGNATION.—For purposes (6) thereof. for fiscal year 2008. of Senate enforcement, all provisions of this sec- (5) INCREASE IN EXPENSING UNDER SECTION TITLE VII—EMERGENCY DESIGNATION 179.—Section 1400N(e) of such Code, by sub- tion are designated as emergency requirements SEC. 701. EMERGENCY DESIGNATION. stituting ‘‘qualified section 179 Recovery Assist- and necessary to meet emergency needs pursu- For purposes of Senate enforcement, all provi- ance property’’ for ‘‘qualified section 179 Gulf ant to section 204 of S. Con. Res. 21 (110th Con- sions of this Act are designated as emergency re- Opportunity Zone property’’ each place it ap- gress), the concurrent resolution on the budget quirements and necessary to meet emergency pears. for fiscal year 2008. needs pursuant to section 204 of S. Con. Res. 21 (6) EXPENSING FOR CERTAIN DEMOLITION AND SEC. 607. WAIVER OF DEADLINE ON CONSTRUC- (110th Congress), the concurrent resolution on CLEAN-UP COSTS.—Section 1400N(f) of such TION OF GO ZONE PROPERTY ELIGI- the budget for fiscal year 2008. BLE FOR BONUS DEPRECIATION. Code— TITLE VIII—REIT INVESTMENT (a) IN GENERAL.—Subparagraph (B) of section (A) by substituting ‘‘qualified Recovery As- 1400N(d)(3) of the Internal Revenue Code of 1986 sistance clean-up cost’’ for ‘‘qualified Gulf Op- DIVERSIFICATION AND EMPOWERMENT is amended to read as follows: portunity Zone clean-up cost’’ each place it ap- SEC. 801. SHORT TITLE; AMENDMENT OF 1986 ‘‘(B) without regard to ‘and before January 1, pears, and CODE. 2009’ in clause (i) thereof,’’. (B) by substituting ‘‘beginning on May 4, (a) SHORT TITLE.—This title may be cited as (b) EFFECTIVE DATE.—The amendment made 2007, and ending on December 31, 2009’’ for ‘‘be- the ‘‘REIT Investment Diversification and Em- by this section shall apply to property placed in ginning on August 28, 2005, and ending on De- powerment Act of 2008’’. service after December 31, 2007. cember 31, 2007’’ in paragraph (2) thereof. (b) AMENDMENT OF 1986 CODE.—Except as oth- (c) EMERGENCY DESIGNATION.—For purposes (7) TREATMENT OF PUBLIC UTILITY PROPERTY erwise expressly provided, whenever in this title of Senate enforcement, all provisions of this sec- DISASTER LOSSES.—Section 1400N(o) of such an amendment or repeal is expressed in terms of tion are designated as emergency requirements Code. an amendment to, or repeal of, a section or and necessary to meet emergency needs pursu- (8) TREATMENT OF NET OPERATING LOSSES AT- other provision, the reference shall be consid- ant to section 204 of S. Con. Res. 21 (110th Con- TRIBUTABLE TO STORM LOSSES.—Section 1400N(k) ered to be made to a section or other provision gress), the concurrent resolution on the budget of such Code— of the Internal Revenue Code of 1986. for fiscal year 2008. (A) by substituting ‘‘qualified Recovery As- Subtitle A—Taxable REIT Subsidiaries sistance loss’’ for ‘‘qualified Gulf Opportunity SEC. 608. TEMPORARY TAX RELIEF FOR KIOWA SEC. 811. CONFORMING TAXABLE REIT SUB- COUNTY, KANSAS AND SUR- Zone loss’’ each place it appears, SIDIARY ASSET TEST. ROUNDING AREA. (B) by substituting ‘‘after May 3, 2007, and Section 856(c)(4)(B)(ii) is amended by striking (a) IN GENERAL.—The following provisions of before on January 1, 2010’’ for ‘‘after August 27, ‘‘20 percent’’ and inserting ‘‘25 percent’’. or relating to the Internal Revenue Code of 1986 2005, and before January 1, 2008’’ each place it shall apply, in addition to the areas described in appears, Subtitle B—Dealer Sales such provisions, to an area with respect to (C) by substituting ‘‘May 4, 2007’’ for ‘‘August SEC. 821. HOLDING PERIOD UNDER SAFE HAR- which a major disaster has been declared by the 28, 2005’’ in paragraph (2)(B)(ii)(I) thereof, BOR. President under section 401 of the Robert T. (D) by substituting ‘‘qualified Recovery As- Section 857(b)(6) (relating to income from pro- Stafford Disaster Relief and Emergency Assist- sistance property’’ for ‘‘qualified Gulf Oppor- hibited transactions) is amended— ance Act (FEMA–1699–DR, as in effect on the tunity Zone property’’ in paragraph (2)(B)(iv) (1) by striking ‘‘4 years’’ in subparagraphs date of the enactment of this Act) by reason of thereof, and (C)(i), (C)(iv), and (D)(i) and inserting ‘‘2 severe storms and tornados beginning on May 4, (E) by substituting ‘‘qualified Recovery Assist- years’’, 2007, and determined by the President to war- ance casualty loss’’ for ‘‘qualified Gulf Oppor- (2) by striking ‘‘4-year period’’ in subpara- rant individual or individual and public assist- tunity Zone casualty loss’’ each place it ap- graphs (C)(ii), (D)(ii), and (D)(iii) and inserting ance from the Federal Government under such pears. ‘‘2-year period’’, and Act with respect to damages attributed to such (9) TREATMENT OF REPRESENTATIONS REGARD- (3) by striking ‘‘real estate asset’’and all that storms and tornados: ING INCOME ELIGIBILITY FOR PURPOSES OF QUALI- follows through ‘‘if’’ in the matter preceding (1) SUSPENSION OF CERTAIN LIMITATIONS ON FIED RENTAL PROJECT REQUIREMENTS.—Section clause (i) of subparagraphs (C) and (D), respec- PERSONAL CASUALTY LOSSES.—Section 1400N(n) of such Code. tively, and inserting ‘‘real estate asset (as de- 1400S(b)(1) of the Internal Revenue Code of (10) SPECIAL RULES FOR USE OF RETIREMENT fined in section 856(c)(5)(B)) and which is de- 1986, by substituting ‘‘May 4, 2007’’ for ‘‘August FUNDS.—Section 1400Q of such Code— scribed in section 1221(a)(1) if’’. 25, 2005’’. (A) by substituting ‘‘qualified Recovery As- SEC. 822. DETERMINING VALUE OF SALES UNDER (2) EXTENSION OF REPLACEMENT PERIOD FOR sistance distribution’’ for ‘‘qualified hurricane SAFE HARBOR. NONRECOGNITION OF GAIN.—Section 405 of the distribution’’ each place it appears, Section 857(b)(6) is amended— Katrina Emergency Tax Relief Act of 2005, by (B) by substituting ‘‘on or after May 4, 2007, (1) by striking the semicolon at the end of sub- substituting ‘‘on or after May 4, 2007, by reason and before January 1, 2009’’ for ‘‘on or after Au- paragraph (C)(iii) and inserting ‘‘, or (III) the

VerDate Mar 15 2010 15:08 Nov 08, 2010 Jkt 069102 PO 00000 Frm 00023 Fmt 0688 Sfmt 6333 E:\BR08\H08MY8.001 H08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD May 8, 2008 CONGRESSIONAL RECORD—HOUSE, Vol. 154, Pt. 6 8167 fair market value of property (other than sales ‘‘(iii) The real estate investment trust receives SEC. 902. ELIGIBILITY FOR SPECIALLY ADAPTED of foreclosure property or sales to which section income from such person with respect to another HOUSING BENEFITS AND ASSIST- 1033 applies) sold during the taxable year does property that is attributable to a lease of such ANCE FOR MEMBERS OF THE ARMED not exceed 10 percent of the fair market value of FORCES WITH SERVICE-CONNECTED other property to such person that was in effect DISABILITIES AND INDIVIDUALS RE- all of the assets of the trust as of the beginning as of the later of— SIDING OUTSIDE THE UNITED of the taxable year;’’, and ‘‘(I) January 1, 1999, or STATES. (2) by adding ‘‘or’’ at the end of subclause (II) ‘‘(II) the earliest date that any taxable REIT (a) ELIGIBILITY.—Chapter 21 of title 38, of subparagraph (D)(iv) and by adding at the subsidiary of such trust entered into a manage- United States Code, is amended by inserting end of such subparagraph the following new ment agreement or other similar service contract after section 2101 the following new section: subclause: with such person with respect to such qualified ‘‘§ 2101A. Eligibility for benefits and assist- ‘‘(III) the fair market value of property (other lodging facility or qualified health care prop- ance: members of the Armed Forces with than sales of foreclosure property or sales to erty.’’. service-connected disabilities; individuals which section 1033 applies) sold during the tax- (c) TAXABLE REIT SUBSIDIARIES.—The last residing outside the United States able year does not exceed 10 percent of the fair sentence of section 856(l)(3) is amended— market value of all of the assets of the trust as ‘‘(a) MEMBERS WITH SERVICE-CONNECTED DIS- of the beginning of the taxable year,’’. (1) by inserting ‘‘or a health care facility’’ ABILITIES.—(1) The Secretary may provide as- after ‘‘a lodging facility’’, and sistance under this chapter to a member of the Subtitle C—Health Care REITs (2) by inserting ‘‘or health care facility’’ after Armed Forces serving on active duty who is suf- SEC. 831. CONFORMITY FOR HEALTH CARE FA- ‘‘such lodging facility’’. fering from a disability that meets applicable CILITIES. Subtitle D—Effective Dates and Sunset criteria for benefits under this chapter if the dis- (a) RELATED PARTY RENTALS.—Subparagraph ability is incurred or aggravated in line of duty (B) of section 856(d)(8) (relating to special rule SEC. 841 EFFECTIVE DATES AND SUNSET. in the active military, naval, or air service. Such for taxable REIT subsidiaries) is amended to (a) IN GENERAL.—Except as otherwise pro- assistance shall be provided to the same extent read as follows: vided in this section, the amendments made by as assistance is provided under this chapter to ‘‘(B) EXCEPTION FOR CERTAIN LODGING FACILI- this title shall apply to taxable years beginning veterans eligible for assistance under this chap- TIES AND HEALTH CARE PROPERTY.—The require- after the date of the enactment of this Act. ter and subject to the same requirements as vet- ments of this subparagraph are met with respect (b) REIT INCOME TESTS.— erans under this chapter. to an interest in real property which is a quali- (1) The amendment made by section 801(a) ‘‘(2) For purposes of this chapter, any ref- fied lodging facility (as defined in paragraph and (b) shall apply to gains and items of income erence to a veteran or eligible individual shall be (9)(D)) or a qualified health care property (as recognized after the date of the enactment of treated as a reference to a member of the Armed defined in subsection (e)(6)(D)(i)) leased by the this Act. Forces described in subsection (a) who is simi- trust to a taxable REIT subsidiary of the trust (2) The amendment made by section 801(c) larly situated to the veteran or other eligible in- if the property is operated on behalf of such dividual so referred to. subsidiary by a person who is an eligible inde- shall apply to transactions entered into after the date of the enactment of this Act. ‘‘(b) BENEFITS AND ASSISTANCE FOR INDIVID- pendent contractor. For purposes of this section, UALS RESIDING OUTSIDE THE UNITED STATES.— (3) The amendment made by section 801(d) a taxable REIT subsidiary is not considered to (1) Subject to paragraph (2), the Secretary may, shall apply after the date of the enactment of be operating or managing a qualified health at the Secretary’s discretion, provide benefits this Act. care property or qualified lodging facility solely and assistance under this chapter (other than (c) CONFORMING FOREIGN CURRENCY REVI- because it— benefits under section 2106 of this title) to any SIONS.— ‘‘(i) directly or indirectly possesses a license, individual otherwise eligible for such benefits permit, or similar instrument enabling it to do (1) The amendment made by section 803(a) and assistance who resides outside the United so, or shall apply to gains recognized after the date of States. ‘‘(ii) employs individuals working at such the enactment of this Act. ‘‘(2) The Secretary may provide benefits and property or facility located outside the United (2) The amendment made by section 803(b) assistance to an individual under paragraph (1) States, but only if an eligible independent con- shall apply to gains and deductions recognized only if— tractor is responsible for the daily supervision after the date of the enactment of this Act. ‘‘(A) the country or political subdivision in and direction of such individuals on behalf of (d) DEALER SALES.—The amendments made by which the housing or residence involved is or the taxable REIT subsidiary pursuant to a man- subtitle C shall apply to sales made after the will be located permits the individual to have or agement agreement or similar service contract.’’. date of the enactment of this Act. acquire a beneficial property interest (as deter- (b) ELIGIBLE INDEPENDENT CONTRACTOR.— (e) SUNSET.—All amendments made by this mined by the Secretary) in such housing or resi- Subparagraphs (A) and (B) of section 856(d)(9) title shall not apply to taxable years beginning dence; and (relating to eligible independent contractor) are after the date which is 5 years after the date of ‘‘(B) the individual has or will acquire a bene- amended to read as follows: the enactment of this Act. The Internal Revenue ficial property interest (as so determined) in ‘‘(A) IN GENERAL.—The term ‘eligible inde- Code of 1986 shall be applied and administered such housing or residence. pendent contractor’ means, with respect to any to taxable years described in the preceding sen- ‘‘(c) REGULATIONS.—Benefits and assistance qualified lodging facility or qualified health tence as if the amendments so described had under this chapter by reason of this section care property (as defined in subsection never been enacted. shall be provided in accordance with such regu- (e)(6)(D)(i)), any independent contractor if, at lations as the Secretary may prescribe.’’. TITLE IX—VETERANS HOUSING MATTERS the time such contractor enters into a manage- (b) CONFORMING AMENDMENTS.— ment agreement or other similar service contract SEC. 901. HOME IMPROVEMENTS AND STRUC- (1) REPEAL OF SUPERSEDED AUTHORITY.—Sec- with the taxable REIT subsidiary to operate TURAL ALTERATIONS FOR TOTALLY tion 2101 of such title is amended— such qualified lodging facility or qualified DISABLED MEMBERS OF THE ARMED (A) by striking subsection (c); and health care property, such contractor (or any FORCES BEFORE DISCHARGE OR RE- (B) by redesignating subsection (d) as sub- LEASE FROM THE ARMED FORCES. related person) is actively engaged in the trade section (c). or business of operating qualified lodging facili- Section 1717 of title 38, United States Code, is (2) LIMITATIONS ON ASSISTANCE.—Section 2102 ties or qualified health care properties, respec- amended by adding at the end the following of such title is amended— tively, for any person who is not a related per- new subsection: (A) in subsection (a)— (i) by striking ‘‘veteran’’ each place it appears son with respect to the real estate investment ‘‘(d)(1) In the case of a member of the Armed Forces who, as determined by the Secretary, has and inserting ‘‘individual’’; and trust or the taxable REIT subsidiary. (ii) in paragraph (3), by striking ‘‘veteran’s’’ ‘‘(B) SPECIAL RULES.—Solely for purposes of a disability permanent in nature incurred or ag- gravated in the line of duty in the active mili- and inserting ‘‘individual’s’’; this paragraph and paragraph (8)(B), a person (B) in subsection (b)(1), by striking ‘‘a vet- shall not fail to be treated as an independent tary, naval, or air service, the Secretary may furnish improvements and structural alterations eran’’ and inserting ‘‘an individual’’; contractor with respect to any qualified lodging (C) in subsection (c)— for such member for such disability or as other- facility or qualified health care property (as so (i) by striking ‘‘a veteran’’ and inserting ‘‘an wise described in subsection (a)(2) while such defined) by reason of the following: individual’’; and ‘‘(i) The taxable REIT subsidiary bears the ex- member is hospitalized or receiving outpatient (ii) by striking ‘‘the veteran’’ each place it ap- penses for the operation of such qualified lodg- medical care, services, or treatment for such dis- pears and inserting ‘‘the individual’’; and ing facility or qualified health care property ability if the Secretary determines that such (D) in subsection (d), by striking ‘‘a veteran’’ pursuant to the management agreement or other member is likely to be discharged or released each place it appears and inserting ‘‘an indi- similar service contract. from the Armed Forces for such disability. vidual’’. ‘‘(ii) The taxable REIT subsidiary receives the ‘‘(2) The furnishing of improvements and al- (3) ASSISTANCE FOR INDIVIDUALS TEMPORARILY revenues from the operation of such qualified terations under paragraph (1) in connection RESIDING IN HOUSING OF FAMILY MEMBER.—Sec- lodging facility or qualified health care prop- with the furnishing of medical services described tion 2102A of such title is amended— erty, net of expenses for such operation and fees in subparagraph (A) or (B) of subsection (a)(2) (A) by striking ‘‘veteran’’ each place it ap- payable to the operator pursuant to such agree- shall be subject to the limitation specified in the pears (other than in subsection (b)) and insert- ment or contract. applicable subparagraph.’’. ing ‘‘individual’’;

VerDate Mar 15 2010 15:08 Nov 08, 2010 Jkt 069102 PO 00000 Frm 00024 Fmt 0688 Sfmt 6333 E:\BR08\H08MY8.001 H08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD 8168 CONGRESSIONAL RECORD—HOUSE, Vol. 154, Pt. 6 May 8, 2008 (B) in subsection (a), by striking ‘‘veteran’s’’ (2) in subsection (b)(2)— (2) other disabled individuals eligible for spe- each place it appears and inserting ‘‘individ- (A) by striking ‘‘either’’ and inserting ‘‘any’’; cially adapted housing under chapter 21 of such ual’s’’; and and title by reason of section 2101A of such title (as (C) in subsection (b), by striking ‘‘a veteran’’ (B) by adding at the end the following new added by section 902(a) of this Act) who have each place it appears and inserting ‘‘an indi- subparagraph: disabilities that are not described in such sub- vidual’’. ‘‘(C) The disability is due to a severe burn in- sections. jury (as so determined).’’. (4) FURNISHING OF PLANS AND SPECIFICA- SEC. 907. REPORT ON SPECIALLY ADAPTED HOUS- TIONS.—Section 2103 of such title is amended by SEC. 904. EXTENSION OF ASSISTANCE FOR INDI- ING ASSISTANCE FOR INDIVIDUALS striking ‘‘veterans’’ both places it appears and VIDUALS RESIDING TEMPORARILY WHO RESIDE IN HOUSING OWNED BY inserting ‘‘individuals’’. IN HOUSING OWNED BY A FAMILY A FAMILY MEMBER ON PERMANENT MEMBER. (5) CONSTRUCTION OF BENEFITS.—Section 2104 BASIS. Section 2102A(e) of title 38, United States of such title is amended— Not later than December 31, 2008, the Sec- Code, is amended by striking ‘‘after the end of (A) in subsection (a), by striking ‘‘veteran’’ retary of Veterans Affairs shall submit to the the five-year period that begins on the date of each place it appears and inserting ‘‘indi- Committee on Veterans’ Affairs of the Senate the enactment of the Veterans’ Housing Oppor- vidual’’; and and the Committee on Veterans’ Affairs of the (B) in subsection (b)— tunity and Benefits Improvement Act of 2006’’ House of Representatives a report on the advis- (i) in the first sentence, by striking ‘‘A vet- and inserting ‘‘after December 31, 2011’’. ability of providing assistance under section eran’’ and inserting ‘‘An individual’’; SEC. 905. INCREASE IN SPECIALLY ADAPTED 2102A of title 38, United States Code, to veterans (ii) in the second sentence, by striking ‘‘a vet- HOUSING BENEFITS FOR DISABLED described in subsection (a) of such section, and VETERANS. eran’’ and inserting ‘‘an individual’’; and to members of the Armed Forces covered by such (a) IN GENERAL.—Section 2102 of title 38, (iii) by striking ‘‘such veteran’’ each place it section 2102A by reason of section 2101A of title United States Code, is amended— 38, United States Code (as added by section appears and inserting ‘‘such individual’’. (1) in subsection (b)(2), by striking ‘‘$10,000’’ 902(a) of this Act), who reside with family mem- (6) VETERANS’ MORTGAGE LIFE INSURANCE.— and inserting ‘‘$12,000’’; Section 2106 of such title is amended— (2) in subsection (d)— bers on a permanent basis. (A) in subsection (a)— (A) in paragraph (1), by striking ‘‘$50,000’’ SEC. 908. DEFINITION OF ANNUAL INCOME FOR (i) by striking ‘‘any eligible veteran’’ and in- and inserting ‘‘$60,000’’; and PURPOSES OF SECTION 8 AND serting ‘‘any eligible individual’’; and (B) in paragraph (2), by striking ‘‘$10,000’’ OTHER PUBLIC HOUSING PRO- (ii) by striking ‘‘the veterans’ ’’ and inserting and inserting ‘‘$12,000’’; and GRAMS. ‘‘the individual’s’’; (3) by adding at the end the following new Section 3(b)(4) of the United States Housing (B) in subsection (b), by striking ‘‘an eligible subsection: Act of 1937 (42 U.S.C. 1437a(3)(b)(4)) is amended veteran’’ and inserting ‘‘an eligible individual’’; ‘‘(e)(1) Effective on October 1 of each year (be- by inserting ‘‘or any deferred Department of (C) in subsection (e), by striking ‘‘an eligible ginning in 2009), the Secretary shall increase the Veterans Affairs disability benefits that are re- veteran’’ and inserting ‘‘an individual’’; amounts described in subsection (b)(2) and para- ceived in a lump sum amount or in prospective (D) in subsection (h), by striking ‘‘each vet- graphs (1) and (2) of subsection (d) in accord- monthly amounts’’ before ‘‘may not be consid- eran’’ and inserting ‘‘each individual’’; ance with this subsection. ered’’. (E) in subsection (i), by striking ‘‘the vet- ‘‘(2) The increase in amounts under para- SEC. 909. PAYMENT OF TRANSPORTATION OF eran’s’’ each place it appears and inserting ‘‘the graph (1) to take effect on October 1 of a year BAGGAGE AND HOUSEHOLD EF- individual’s’’; shall be by an amount of such amounts equal to FECTS FOR MEMBERS OF THE (F) by striking ‘‘the veteran’’ each place it ap- the percentage by which— ARMED FORCES WHO RELOCATE DUE pears and inserting ‘‘the individual’’; and ‘‘(A) the residential home cost-of-construction TO FORECLOSURE OF LEASED HOUS- ING. (G) by striking ‘‘a veteran’’ each place it ap- index for the preceding calendar year, exceeds pears and inserting ‘‘an individual’’. ‘‘(B) the residential home cost-of-construction Section 406 of title 37, United States Code, is (7) HEADING AMENDMENTS.—(A) The heading index for the year preceding the year described amended— of section 2101 of such title is amended to read in subparagraph (A). (1) by redesignating subsections (k) and (l) as as follows: ‘‘(3) The Secretary shall establish a residential subsections (l) and (m), respectively; and home cost-of-construction index for the purposes (2) by inserting after subsection (j) the fol- ‘‘§ 2101. Acquisition and adaptation of hous- lowing new subsection (k): ing: eligible veterans’’. of this subsection. The index shall reflect a uni- form, national average change in the cost of res- ‘‘(k) A member of the armed forces who relo- (B) The heading of section 2102A of such title idential home construction, determined on a cal- cates from leased or rental housing by reason of is amended to read as follows: endar year basis. The Secretary may use an the foreclosure of such housing is entitled to ‘‘§ 2102A. Assistance for individuals residing index developed in the private sector that the transportation of baggage and household effects temporarily in housing owned by a family Secretary determines is appropriate for purposes under subsection (b)(1) in the same manner, and member’’. of this subsection.’’. subject to the same conditions and limitations, (8) CLERICAL AMENDMENTS.—The table of sec- (b) EFFECTIVE DATE.—The amendments made as similarly circumstanced members entitled to tions at the beginning of chapter 21 of such title by this section shall take effect on July 1, 2008, transportation of baggage and household effects is amended— and shall apply with respect to payments made under that subsection.’’. (A) by striking the item relating to section in accordance with section 2102 of title 38, TITLE X—CLEAN ENERGY TAX STIMULUS 2101 and inserting the following new item: United States Code, on or after that date. SEC. 1001. SHORT TITLE; ETC. ‘‘2101. Acquisition and adaptation of housing: SEC. 906. REPORT ON SPECIALLY ADAPTED HOUS- (a) SHORT TITLE.—This title may be cited as eligible veterans.’’; ING FOR DISABLED INDIVIDUALS. the ‘‘Clean Energy Tax Stimulus Act of 2008’’. (B) by inserting after the item relating to sec- (a) IN GENERAL.—Not later than December 31, (b) AMENDMENT OF 1986 CODE.—Except as oth- tion 2101, as so amended, the following new 2008, the Secretary of Veterans Affairs shall erwise expressly provided, whenever in this title item: submit to the Committee on Veterans’ Affairs of an amendment or repeal is expressed in terms of the Senate and the Committee on Veterans’ Af- ‘‘2101A. Eligibility for benefits and assistance: an amendment to, or repeal of, a section or fairs of the House of Representatives a report members of the Armed Forces with other provision, the reference shall be consid- that contains an assessment of the adequacy of service-connected disabilities; in- ered to be made to a section or other provision the authorities available to the Secretary under dividuals residing outside the of the Internal Revenue Code of 1986. law to assist eligible disabled individuals in ac- United States.’’; quiring— Subtitle A—Extension of Clean Energy and (1) suitable housing units with special fixtures Production Incentives (C) by striking the item relating to section or movable facilities required for their disabil- SEC. 1011. EXTENSION AND MODIFICATION OF 2102A and inserting the following new item: ities, and necessary land therefor; RENEWABLE ENERGY PRODUCTION ‘‘2102A. Assistance for individuals residing tem- (2) such adaptations to their residences as are TAX CREDIT. porarily in housing owned by a reasonably necessary because of their disabil- (a) EXTENSION OF CREDIT.—Each of the fol- family member.’’. ities; and lowing provisions of section 45(d) (relating to SEC. 903. SPECIALLY ADAPTED HOUSING ASSIST- (3) residences already adapted with special qualified facilities) is amended by striking ‘‘Jan- ANCE FOR INDIVIDUALS WITH SE- features determined by the Secretary to be rea- uary 1, 2009’’ and inserting ‘‘January 1, 2010’’: VERE BURN INJURIES. sonably necessary as a result of their disabil- (1) Paragraph (1). Section 2101 of title 38, United States Code, is ities. (2) Clauses (i) and (ii) of paragraph (2)(A). amended— (b) FOCUS ON PARTICULAR DISABILITIES.—The (3) Clauses (i)(I) and (ii) of paragraph (3)(A). (1) in subsection (a)(2), by adding at the end report required by subsection (a) shall set forth (4) Paragraph (4). the following new subparagraph: a specific assessment of the needs of— (5) Paragraph (5). ‘‘(E) The disability is due to a severe burn in- (1) veterans who have disabilities that are not (6) Paragraph (6). jury (as determined pursuant to regulations pre- described in subsections (a)(2) and (b)(2) of sec- (7) Paragraph (7). scribed by the Secretary).’’; and tion 2101 of title 38, United States Code; and (8) Paragraph (8).

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(9) Subparagraphs (A) and (B) of paragraph to electricity produced and sold before, on, or (1) IN GENERAL.—Section 25D(b)(1) (relating to (9). after December 31, 2007. maximum credit) is amended by striking sub- (b) PRODUCTION CREDIT FOR ELECTRICITY SEC. 1012. EXTENSION AND MODIFICATION OF paragraph (A) and by redesignating subpara- PRODUCED FROM MARINE RENEWABLES.— SOLAR ENERGY AND FUEL CELL IN- graphs (B) and (C) as subparagraphs (A) and (1) IN GENERAL.—Paragraph (1) of section VESTMENT TAX CREDIT. (B), respectively. 45(c) (relating to resources) is amended by strik- (a) EXTENSION OF CREDIT.— (2) CONFORMING AMENDMENTS.—Section ing ‘‘and’’ at the end of subparagraph (G), by (1) SOLAR ENERGY PROPERTY.—Paragraphs 25D(e)(4) is amended— striking the period at the end of subparagraph (2)(A)(i)(II) and (3)(A)(ii) of section 48(a) (relat- (A) by striking clause (i) in subparagraph (A), (H) and inserting ‘‘, and’’, and by adding at the ing to energy credit) are each amended by strik- (B) by redesignating clauses (ii) and (iii) in end the following new subparagraph: ing ‘‘January 1, 2009’’ and inserting ‘‘January subparagraph (A) as clauses (i) and (ii), respec- ‘‘(I) marine and hydrokinetic renewable en- 1, 2017’’. tively, and ergy.’’. (2) FUEL CELL PROPERTY.—Subparagraph (E) (C) by striking ‘‘, (2),’’ in subparagraph (C). (2) MARINE RENEWABLES.—Subsection (c) of of section 48(c)(1) (relating to qualified fuel cell (c) CREDIT ALLOWED AGAINST ALTERNATIVE section 45 is amended by adding at the end the property) is amended by striking ‘‘December 31, MINIMUM TAX.— following new paragraph: 2008’’ and inserting ‘‘December 31, 2017’’. (1) IN GENERAL.—Subsection (c) of section 25D ‘‘(10) MARINE AND HYDROKINETIC RENEWABLE (3) QUALIFIED MICROTURBINE PROPERTY.— is amended to read as follows: ENERGY.— Subparagraph (E) of section 48(c)(2) (relating to ‘‘(c) LIMITATION BASED ON AMOUNT OF TAX; ‘‘(A) IN GENERAL.—The term ‘marine and qualified microturbine property) is amended by CARRYFORWARD OF UNUSED CREDIT.— hydrokinetic renewable energy’ means energy striking ‘‘December 31, 2008’’ and inserting ‘‘De- ‘‘(1) LIMITATION BASED ON AMOUNT OF TAX.— derived from— cember 31, 2017’’. In the case of a taxable year to which section ‘‘(i) waves, tides, and currents in oceans, estu- (b) ALLOWANCE OF ENERGY CREDIT AGAINST 26(a)(2) does not apply, the credit allowed under aries, and tidal areas, ALTERNATIVE MINIMUM TAX.—Subparagraph subsection (a) for the taxable year shall not ex- ‘‘(ii) free flowing water in rivers, lakes, and (B) of section 38(c)(4) (relating to specified cred- ceed the excess of— streams, its) is amended by striking ‘‘and’’ at the end of ‘‘(A) the sum of the regular tax liability (as ‘‘(iii) free flowing water in an irrigation sys- clause (iii), by striking the period at the end of defined in section 26(b)) plus the tax imposed by tem, canal, or other man-made channel, includ- clause (iv) and inserting ‘‘, and’’, and by adding section 55, over ‘‘(B) the sum of the credits allowable under ing projects that utilize nonmechanical struc- at the end the following new clause: this subpart (other than this section) and sec- tures to accelerate the flow of water for electric ‘‘(v) the credit determined under section 46 to tion 27 for the taxable year. power production purposes, or the extent that such credit is attributable to the ‘‘(2) CARRYFORWARD OF UNUSED CREDIT.— ‘‘(iv) differentials in ocean temperature (ocean energy credit determined under section 48.’’. ‘‘(A) RULE FOR YEARS IN WHICH ALL PERSONAL thermal energy conversion). (c) REPEAL OF DOLLAR PER KILOWATT LIMITA- CREDITS ALLOWED AGAINST REGULAR AND ALTER- ‘‘(B) EXCEPTIONS.—Such term shall not in- TION FOR FUEL CELL PROPERTY.— NATIVE MINIMUM TAX.—In the case of a taxable clude any energy which is derived from any (1) IN GENERAL.—Section 48(c)(1) (relating to year to which section 26(a)(2) applies, if the source which utilizes a dam, diversionary struc- qualified fuel cell), as amended by subsection credit allowable under subsection (a) exceeds ture (except as provided in subparagraph (a)(2), is amended by striking subparagraph (B) the limitation imposed by section 26(a)(2) for (A)(iii)), or impoundment for electric power pro- and by redesignating subparagraphs (C), (D), such taxable year reduced by the sum of the duction purposes.’’. and (E) as subparagraphs (B), (C), and (D), re- credits allowable under this subpart (other than (3) DEFINITION OF FACILITY.—Subsection (d) of spectively. this section), such excess shall be carried to the section 45 is amended by adding at the end the (2) CONFORMING AMENDMENT.—Section succeeding taxable year and added to the credit following new paragraph: 48(a)(1) is amended by striking ‘‘paragraphs allowable under subsection (a) for such suc- ‘‘(11) MARINE AND HYDROKINETIC RENEWABLE (1)(B) and (2)(B) of subsection (c)’’ and insert- ceeding taxable year. ENERGY FACILITIES.—In the case of a facility ing ‘‘subsection (c)(2)(B)’’. ‘‘(B) RULE FOR OTHER YEARS.—In the case of producing electricity from marine and (d) PUBLIC ELECTRIC UTILITY PROPERTY a taxable year to which section 26(a)(2) does not hydrokinetic renewable energy, the term ‘quali- TAKEN INTO ACCOUNT.— apply, if the credit allowable under subsection fied facility’ means any facility owned by the (1) IN GENERAL.—Paragraph (3) of section (a) exceeds the limitation imposed by paragraph taxpayer— 48(a) is amended by striking the second sentence (1) for such taxable year, such excess shall be ‘‘(A) which has a nameplate capacity rating thereof. carried to the succeeding taxable year and of at least 150 kilowatts, and (2) CONFORMING AMENDMENTS.— added to the credit allowable under subsection ‘‘(B) which is originally placed in service on (A) Paragraph (1) of section 48(c), as amended (a) for such succeeding taxable year.’’. or after the date of the enactment of this para- by this section, is amended by striking subpara- (2) CONFORMING AMENDMENTS.— graph and before January 1, 2010.’’. graph (C) and redesignating subparagraph (D) (A) Section 23(b)(4)(B) is amended by inserting (4) CREDIT RATE.—Subparagraph (A) of sec- as subparagraph (C). ‘‘and section 25D’’ after ‘‘this section’’. tion 45(b)(4) is amended by striking ‘‘or (9)’’ and (B) Paragraph (2) of section 48(c), as amended (B) Section 24(b)(3)(B) is amended by striking inserting ‘‘(9), or (11)’’. by subsection (a)(3), is amended by striking sub- ‘‘and 25B’’ and inserting ‘‘, 25B, and 25D’’. (5) COORDINATION WITH SMALL IRRIGATION paragraph (D) and redesignating subparagraph (C) Section 25B(g)(2) is amended by striking POWER.—Paragraph (5) of section 45(d), as (E) as subparagraph (D). ‘‘section 23’’ and inserting ‘‘sections 23 and amended by subsection (a), is amended by strik- (e) EFFECTIVE DATES.— 25D’’. ing ‘‘January 1, 2010’’ and inserting ‘‘the date (1) EXTENSION.—The amendments made by (D) Section 26(a)(1) is amended by striking of the enactment of paragraph (11)’’. subsection (a) shall take effect on the date of ‘‘and 25B’’ and inserting ‘‘25B, and 25D’’. (c) SALES OF ELECTRICITY TO REGULATED PUB- the enactment of this Act. (d) EFFECTIVE DATE.— LIC UTILITIES TREATED AS SALES TO UNRELATED (2) ALLOWANCE AGAINST ALTERNATIVE MIN- (1) IN GENERAL.—The amendments made by PERSONS.—Section 45(e)(4) (relating to related IMUM TAX.—The amendments made by sub- this section shall apply to taxable years begin- persons) is amended by adding at the end the section (b) shall apply to credits determined ning after December 31, 2007. following new sentence: ‘‘A taxpayer shall be under section 46 of the Internal Revenue Code (2) APPLICATION OF EGTRRA SUNSET.—The treated as selling electricity to an unrelated per- of 1986 in taxable years beginning after the date amendments made by subparagraphs (A) and son if such electricity is sold to a regulated pub- of the enactment of this Act and to carrybacks (B) of subsection (c)(2) shall be subject to title lic utility (as defined in section 7701(a)(33).’’. of such credits. IX of the Economic Growth and Tax Relief Rec- (d) TRASH FACILITY CLARIFICATION.—Para- (3) FUEL CELL PROPERTY AND PUBLIC ELECTRIC onciliation Act of 2001 in the same manner as graph (7) of section 45(d) is amended— UTILITY PROPERTY.—The amendments made by the provisions of such Act to which such amend- (1) by striking ‘‘facility which burns’’ and in- subsections (c) and (d) shall apply to periods ments relate. serting ‘‘facility (other than a facility described after the date of the enactment of this Act, in SEC. 1014. EXTENSION AND MODIFICATION OF in paragraph (6)) which uses’’, and taxable years ending after such date, under CREDIT FOR CLEAN RENEWABLE EN- (2) by striking ‘‘COMBUSTION’’. rules similar to the rules of section 48(m) of the ERGY BONDS. (e) EFFECTIVE DATES.— Internal Revenue Code of 1986 (as in effect on (a) EXTENSION.—Section 54(m) (relating to ter- (1) EXTENSION.—The amendments made by the day before the date of the enactment of the mination) is amended by striking ‘‘December 31, subsection (a) shall apply to property originally Revenue Reconciliation Act of 1990). 2008’’ and inserting ‘‘December 31, 2009’’. placed in service after December 31, 2008. SEC. 1013. EXTENSION AND MODIFICATION OF (b) INCREASE IN NATIONAL LIMITATION.—Sec- (2) MODIFICATIONS.—The amendments made RESIDENTIAL ENERGY EFFICIENT tion 54(f) (relating to limitation on amount of by subsections (b) and (c) shall apply to elec- PROPERTY CREDIT. bonds designated) is amended— tricity produced and sold after the date of the (a) EXTENSION.—Section 25D(g) (relating to (1) by inserting ‘‘, and for the period begin- enactment of this Act, in taxable years ending termination) is amended by striking ‘‘December ning after the date of the enactment of the after such date. 31, 2008’’ and inserting ‘‘December 31, 2009’’. Clean Energy Tax Stimulus Act of 2008 and end- (3) TRASH FACILITY CLARIFICATION.—The (b) NO DOLLAR LIMITATION FOR CREDIT FOR ing before January 1, 2010, $400,000,000’’ after amendments made by subsection (d) shall apply SOLAR ELECTRIC PROPERTY.— ‘‘$1,200,000,000’’ in paragraph (1),

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(2) by striking ‘‘$750,000,000 of the’’ in para- ‘‘(6) BIOMASS FUEL.—The term ‘biomass fuel’ (b) ADJUSTMENT OF MAXIMUM DEDUCTION graph (2) and inserting ‘‘$750,000,000 of the means any plant-derived fuel available on a re- AMOUNT.— $1,200,000,000’’, and newable or recurring basis, including agricul- (1) IN GENERAL.—Subparagraph (A) of section (3) by striking ‘‘bodies’’ in paragraph (2) and tural crops and trees, wood and wood waste and 179D(b)(1) (relating to maximum amount of de- inserting ‘‘bodies, and except that the Secretary residues (including wood pellets), plants (in- duction) is amended by striking ‘‘$1.80’’ and in- may not allocate more than 1⁄3 of the $400,000,000 cluding aquatic plants), grasses, residues, and serting ‘‘$2.25’’. national clean renewable energy bond limitation fibers.’’. (2) PARTIAL ALLOWANCE.—Paragraph (1) of to finance qualified projects of qualified bor- (c) MODIFICATIONS OF STANDARDS FOR EN- section 179D(d) is amended— rowers which are public power providers nor ERGY-EFFICIENT BUILDING PROPERTY.— (A) by striking ‘‘$.60’’ and inserting ‘‘$0.75’’, more than 1⁄3 of such limitation to finance quali- (1) ELECTRIC HEAT PUMPS.—Subparagraph (B) and fied projects of qualified borrowers which are of section 25C(d)(3) is amended to read as fol- (B) by striking ‘‘$1.80’’ and inserting ‘‘$2.25’’. mutual or cooperative electric companies de- lows: (c) EFFECTIVE DATE.—The amendments made scribed in section 501(c)(12) or section ‘‘(A) an electric heat pump which achieves the by this section shall apply to property placed in 1381(a)(2)(C)’’. highest efficiency tier established by the Consor- service after the date of the enactment of this (c) PUBLIC POWER PROVIDERS DEFINED.—Sec- tium for Energy Efficiency, as in effect on Janu- Act. tion 54(j) is amended— ary 1, 2008.’’. SEC. 1024. MODIFICATION AND EXTENSION OF (1) by adding at the end the following new (2) CENTRAL AIR CONDITIONERS.—Section ENERGY EFFICIENT APPLIANCE paragraph: 25C(d)(3)(D) is amended by striking ‘‘2006’’ and CREDIT FOR APPLIANCES PRO- DUCED AFTER 2007. ‘‘(6) PUBLIC POWER PROVIDER.—The term inserting ‘‘2008’’. ‘public power provider’ means a State utility (3) WATER HEATERS.—Subparagraph (E) of (a) IN GENERAL.—Subsection (b) of section with a service obligation, as such terms are de- section 25C(d) is amended to read as follows: 45M (relating to applicable amount) is amended fined in section 217 of the Federal Power Act (as ‘‘(E) a natural gas, propane, or oil water to read as follows: in effect on the date of the enactment of this heater which has either an energy factor of at ‘‘(b) APPLICABLE AMOUNT.—For purposes of paragraph).’’, and least 0.80 or a thermal efficiency of at least 90 subsection (a)— ‘‘(1) DISHWASHERS.—The applicable amount (2) by inserting ‘‘; PUBLIC POWER PROVIDER’’ percent.’’. before the period at the end of the heading. (4) OIL FURNACES AND HOT WATER BOILERS.— is— ‘‘(A) $45 in the case of a dishwasher which is (d) TECHNICAL AMENDMENT.—The third sen- Paragraph (4) of section 25C(d) is amended to tence of section 54(e)(2) is amended by striking read as follows: manufactured in calendar year 2008 or 2009 and ‘‘subsection (l)(6)’’ and inserting ‘‘subsection ‘‘(4) QUALIFIED NATURAL GAS, PROPANE, AND which uses no more than 324 kilowatt hours per (l)(5)’’. OIL FURNACES AND HOT WATER BOILERS.— year and 5.8 gallons per cycle, and ‘‘(B) $75 in the case of a dishwasher which is (e) EFFECTIVE DATE.—The amendments made ‘‘(A) QUALIFIED NATURAL GAS FURNACE.—The manufactured in calendar year 2008, 2009, or by this section shall apply to bonds issued after term ‘qualified natural gas furnace’ means any 2010 and which uses no more than 307 kilowatt the date of the enactment of this Act. natural gas furnace which achieves an annual fuel utilization efficiency rate of not less than hours per year and 5.0 gallons per cycle (5.5 gal- SEC. 1015. EXTENSION OF SPECIAL RULE TO IM- lons per cycle for dishwashers designed for PLEMENT FERC RESTRUCTURING 95. POLICY. ‘‘(B) QUALIFIED NATURAL GAS HOT WATER greater than 12 place settings). BOILER.—The term ‘qualified natural gas hot ‘‘(2) CLOTHES WASHERS.—The applicable (a) QUALIFYING ELECTRIC TRANSMISSION water boiler’ means any natural gas hot water amount is— TRANSACTION.— ‘‘(A) $75 in the case of a residential top-load- (1) IN GENERAL.—Section 451(i)(3) (defining boiler which achieves an annual fuel utilization ing clothes washer manufactured in calendar qualifying electric transmission transaction) is efficiency rate of not less than 90. year 2008 which meets or exceeds a 1.72 modified amended by striking ‘‘January 1, 2008’’ and in- ‘‘(C) QUALIFIED PROPANE FURNACE.—The term energy factor and does not exceed a 8.0 water serting ‘‘January 1, 2010’’. ‘qualified propane furnace’ means any propane furnace which achieves an annual fuel utiliza- consumption factor, (2) EFFECTIVE DATE.—The amendment made ‘‘(B) $125 in the case of a residential top-load- by this subsection shall apply to transactions tion efficiency rate of not less than 95. ‘‘(D) QUALIFIED PROPANE HOT WATER BOIL- ing clothes washer manufactured in calendar after December 31, 2007. ER.—The term ‘qualified propane hot water boil- year 2008 or 2009 which meets or exceeds a 1.8 (b) INDEPENDENT TRANSMISSION COMPANY.— er’ means any propane hot water boiler which modified energy factor and does not exceed a 7.5 (1) IN GENERAL.—Section 451(i)(4)(B)(ii) (de- water consumption factor, fining independent transmission company) is achieves an annual fuel utilization efficiency ‘‘(C) $150 in the case of a residential or com- amended by striking ‘‘December 31, 2007’’ and rate of not less than 90. ‘‘(E) QUALIFIED OIL FURNACES.—The term mercial clothes washer manufactured in cal- inserting ‘‘the date which is 2 years after the ‘qualified oil furnace’ means any oil furnace endar year 2008, 2009, or 2010 which meets or ex- date of such transaction’’. which achieves an annual fuel utilization effi- ceeds 2.0 modified energy factor and does not (2) EFFECTIVE DATE.—The amendment made ciency rate of not less than 90. exceed a 6.0 water consumption factor, and by this subsection shall take effect as if included ‘‘(F) QUALIFIED OIL HOT WATER BOILER.—The ‘‘(D) $250 in the case of a residential or com- in the amendments made by section 909 of the term ‘qualified oil hot water boiler’ means any mercial clothes washer manufactured in cal- American Jobs Creation Act of 2004. oil hot water boiler which achieves an annual endar year 2008, 2009, or 2010 which meets or ex- Subtitle B—Extension of Incentives to Improve fuel utilization efficiency rate of not less than ceeds 2.2 modified energy factor and does not Energy Efficiency 90.’’. exceed a 4.5 water consumption factor. SEC. 1021. EXTENSION AND MODIFICATION OF (d) EFFECTIVE DATE.—The amendments made ‘‘(3) REFRIGERATORS.—The applicable amount CREDIT FOR ENERGY EFFICIENCY this section shall apply to expenditures made is— IMPROVEMENTS TO EXISTING after December 31, 2007. ‘‘(A) $50 in the case of a refrigerator which is HOMES. SEC. 1022. EXTENSION AND MODIFICATION OF manufactured in calendar year 2008, and con- (a) EXTENSION OF CREDIT.—Section 25C(g) (re- TAX CREDIT FOR ENERGY EFFICIENT sumes at least 20 percent but not more than 22.9 lating to termination) is amended by striking NEW HOMES. percent less kilowatt hours per year than the ‘‘December 31, 2007’’ and inserting ‘‘December (a) EXTENSION OF CREDIT.—Subsection (g) of 2001 energy conservation standards, 31, 2009’’. section 45L (relating to termination) is amended ‘‘(B) $75 in the case of a refrigerator which is (b) QUALIFIED BIOMASS FUEL PROPERTY.— by striking ‘‘December 31, 2008’’ and inserting manufactured in calendar year 2008 or 2009, and (1) IN GENERAL.—Section 25C(d)(3) is amend- ‘‘December 31, 2010’’. consumes at least 23 percent but no more than ed— (b) ALLOWANCE FOR CONTRACTOR’S PERSONAL 24.9 percent less kilowatt hours per year than (A) by striking ‘‘and’’ at the end of subpara- RESIDENCE.—Subparagraph (B) of section the 2001 energy conservation standards, graph (D), 45L(a)(1) is amended to read as follows: ‘‘(C) $100 in the case of a refrigerator which is (B) by striking the period at the end of sub- ‘‘(B)(i) acquired by a person from such eligible manufactured in calendar year 2008, 2009, or paragraph (E) and inserting ‘‘, and’’, and contractor and used by any person as a resi- 2010, and consumes at least 25 percent but not (C) by adding at the end the following new dence during the taxable year, or more than 29.9 percent less kilowatt hours per subparagraph: ‘‘(ii) used by such eligible contractor as a resi- year than the 2001 energy conservation stand- ‘‘(F) a stove which uses the burning of bio- dence during the taxable year.’’. ards, and mass fuel to heat a dwelling unit located in the (c) EFFECTIVE DATE.—The amendments made ‘‘(D) $200 in the case of a refrigerator manu- United States and used as a residence by the by this section shall apply to homes acquired factured in calendar year 2008, 2009, or 2010 and taxpayer, or to heat water for use in such a after December 31, 2008. which consumes at least 30 percent less energy dwelling unit, and which has a thermal effi- SEC. 1023. EXTENSION AND MODIFICATION OF than the 2001 energy conservation standards.’’. ciency rating of at least 75 percent.’’. ENERGY EFFICIENT COMMERCIAL (b) ELIGIBLE PRODUCTION.— (2) BIOMASS FUEL.—Section 25C(d) (relating to BUILDINGS DEDUCTION. (1) SIMILAR TREATMENT FOR ALL APPLI- residential energy property expenditures) is (a) EXTENSION.—Section 179D(h) (relating to ANCES.—Subsection (c) of section 45M (relating amended by adding at the end the following termination) is amended by striking ‘‘December to eligible production) is amended— new paragraph: 31, 2008’’ and inserting ‘‘December 31, 2009’’. (A) by striking paragraph (2),

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(B) by striking ‘‘(1) IN GENERAL’’ and all that (5) GALLONS PER CYCLE; WATER CONSUMPTION Sec. 116. GAO study of the effect of tight- follows through ‘‘the eligible’’ and inserting FACTOR.—Section 45M(f) (relating to defini- ening credit markets in com- ‘‘The eligible’’, and tions), as amended by paragraph (3), is amended munities affected by the (C) by moving the text of such subsection in by adding at the end the following: subprime mortgage foreclosure line with the subsection heading and redesig- ‘‘(9) GALLONS PER CYCLE.—The term ‘gallons crises and predatory lending on nating subparagraphs (A) and (B) as para- per cycle’ means, with respect to a dishwasher, prospective first-time home- graphs (1) and (2), respectively. the amount of water, expressed in gallons, re- buyers seeking mortgages. (2) MODIFICATION OF BASE PERIOD.—Para- quired to complete a normal cycle of a dish- Subtitle B—Office of Housing Counseling graph (2) of section 45M(c), as amended by washer. Sec. 131. Short title. paragraph (1) of this section, is amended by ‘‘(10) WATER CONSUMPTION FACTOR.—The term Sec. 132. Establishment of Office of Housing striking ‘‘3-calendar year’’ and inserting ‘‘2-cal- ‘water consumption factor’ means, with respect Counseling. endar year’’. to a clothes washer, the quotient of the total Sec. 133. Counseling procedures. (c) TYPES OF ENERGY EFFICIENT APPLI- weighted per-cycle water consumption divided Sec. 134. Grants for housing counseling as- ANCES.—Subsection (d) of section 45M (defining by the cubic foot (or liter) capacity of the sistance. types of energy efficient appliances) is amended clothes washer.’’. Sec. 135. Requirements to use HUD-certified to read as follows: (f) EFFECTIVE DATE.—The amendments made counselors under HUD pro- ‘‘(d) TYPES OF ENERGY EFFICIENT APPLI- by this section shall apply to appliances pro- grams. ANCE.—For purposes of this section, the types of duced after December 31, 2007. Sec. 136. Study of defaults and foreclosures. energy efficient appliances are— TITLE XI—SENSE OF THE SENATE Sec. 137. Definitions for counseling-related ‘‘(1) dishwashers described in subsection programs. SEC. 1101. SENSE OF THE SENATE. (b)(1), Sec. 138. Updating and simplification of ‘‘(2) clothes washers described in subsection It is the sense of the Senate that in imple- mortgage information booklet. (b)(2), and menting or carrying out any provision of this Subtitle C—Combating Mortgage Fraud ‘‘(3) refrigerators described in subsection Act, or any amendment made by this Act, the (b)(3).’’. Senate supports a policy of noninterference re- Sec. 151. Authorization of appropriations to (d) AGGREGATE CREDIT AMOUNT ALLOWED.— garding local government requirements that the combat mortgage fraud. (1) INCREASE IN LIMIT.—Paragraph (1) of sec- holder of a foreclosed property maintain that TITLE II—FHA REFORM AND MANUFAC- tion 45M(e) (relating to aggregate credit amount property. TURED HOUSING LOAN INSURANCE allowed) is amended to read as follows: Amend the title so as to read: ‘‘An Act to MODERNIZATION ‘‘(1) AGGREGATE CREDIT AMOUNT ALLOWED.— provide needed housing reform and for other Subtitle A—FHA Reform purposes.’’. The aggregate amount of credit allowed under Sec. 201. Short title. subsection (a) with respect to a taxpayer for any MOTION OFFERED BY MR. FRANK OF Sec. 202. Findings and purposes. taxable year shall not exceed $75,000,000 reduced MASSACHUSETTS Sec. 203. Maximum principal loan obliga- by the amount of the credit allowed under sub- Mr. FRANK of Massachusetts. Mr. tion. section (a) to the taxpayer (or any predecessor) Sec. 204. Extension of mortgage term. for all prior taxable years beginning after De- Speaker, I have a motion at the desk. The SPEAKER pro tempore. The Sec. 205. Downpayment simplification. cember 31, 2007.’’. Sec. 206. Mortgage insurance premiums for (2) EXCEPTION FOR CERTAIN REFRIGERATOR Clerk will designate the motion. qualified homeownership assist- AND CLOTHES WASHERS.—Paragraph (2) of sec- The text of the motion is as follows: ance entities and higher-risk tion 45M(e) is amended to read as follows: Motion offered by Mr. FRANK of Massachu- borrowers. ‘‘(2) AMOUNT ALLOWED FOR CERTAIN REFRIG- setts: Sec. 207. Risk-based mortgage insurance ERATORS AND CLOTHES WASHERS.—Refrigerators Mr. Frank of Massachusetts moves that premiums. described in subsection (b)(3)(D) and clothes the House concur in the Senate amendment Sec. 208. Payment incentives for higher-risk washers described in subsection (b)(2)(D) shall to the text of H.R. 3221 with each of the three borrowers. not be taken into account under paragraph amendments printed in the report of the Sec. 209. Protections for higher-risk bor- (1).’’. Committee on Rules accompanying House rowers. (e) QUALIFIED ENERGY EFFICIENT APPLI- Resolution 1175. Sec. 210. Refinancing mortgages. ANCES.— Sec. 211. Annual reports on new programs (1) IN GENERAL.—Paragraph (1) of section The text of House amendment No. 1 and loss mitigation. 45M(f) (defining qualified energy efficient appli- to the Senate amendment is as follows: Sec. 212. Insurance for single family homes ance) is amended to read as follows: In the matter proposed to be inserted by with licensed child care facili- ‘‘(1) QUALIFIED ENERGY EFFICIENT APPLI- the amendment of the Senate to the text of ties. ANCE.—The term ‘qualified energy efficient ap- the bill, strike section 1 and all that follows Sec. 213. Rehabilitation loans. pliance’ means— through the end of title V and insert the fol- Sec. 214. Discretionary action. ‘‘(A) any dishwasher described in subsection lowing: Sec. 215. Insurance of condominiums and (b)(1), SEC. 1. SHORT TITLE AND TABLE OF CONTENTS. manufactured housing. ‘‘(B) any clothes washer described in sub- (a) SHORT TITLE.—This Act may be cited as Sec. 216. Mutual Mortgage Insurance Fund. section (b)(2), and the ‘‘American Housing Rescue and Fore- Sec. 217. Hawaiian home lands and Indian ‘‘(C) any refrigerator described in subsection closure Prevention Act of 2008’’. reservations. (b)(3).’’. Sec. 218. Conforming and technical amend- (b) TABLE OF CONTENTS.—The table of con- (2) CLOTHES WASHER.—Section 45M(f)(3) (de- tents for this Act is as follows: ments. fining clothes washer) is amended by inserting Sec. 219. Home equity conversion mortgages. ‘‘commercial’’ before ‘‘residential’’ the second Sec. 1. Short title and table of contents. Sec. 220. Study on participation of mortgage place it appears. TITLE I—FHA HOUSING STABILIZATION brokers and correspondent (3) TOP-LOADING CLOTHES WASHER.—Sub- AND HOMEOWNERSHIP RETENTION lenders. section (f) of section 45M (relating to defini- Sec. 101. Short title. Sec. 221. Conforming loan limit in disaster tions) is amended by redesignating paragraphs areas. Subtitle A—Homeownership Retention (4), (5), (6), and (7) as paragraphs (5), (6), (7), Sec. 222. Failure to pay amounts from es- and (8), respectively, and by inserting after Sec. 111. Purposes. crow accounts for single family paragraph (3) the following new paragraph: Sec. 112. Insurance of homeownership reten- mortgages. ‘‘(4) TOP-LOADING CLOTHES WASHER.—The tion mortgages. Sec. 223. Acceptable identification for FHA term ‘top-loading clothes washer’ means a Sec. 113. Study of Auction or Bulk Refi- mortgagors. clothes washer which has the clothes container nance Program. Sec. 224. Pilot program for automated proc- compartment access located on the top of the Sec. 114. Temporary increase in maximum ess for borrowers without suffi- machine and which operates on a vertical loan guaranty amount for cer- cient credit history. axis.’’. tain housing loans guaranteed Sec. 225. Sense of Congress regarding tech- (4) REPLACEMENT OF ENERGY FACTOR.—Sec- by Secretary of Veterans Af- nology for financial systems. tion 45M(f)(6), as redesignated by paragraph fairs. Sec. 226. Clarification of disposition of cer- (3), is amended to read as follows: Sec. 115. Study of possible accounting revi- tain properties. ‘‘(6) MODIFIED ENERGY FACTOR.—The term sions relating to property at Sec. 227. Valuation of multifamily prop- ‘modified energy factor’ means the modified en- risk of foreclosure and the erties in noncompetitive sales ergy factor established by the Department of availability of credit for refi- by HUD to states and localities. Energy for compliance with the Federal energy nancing home mortgages at Sec. 228. Limitation on mortgage insurance conservation standard.’’. risk of foreclosure. premium increases.

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Sec. 229. Civil money penalties for improp- CHAPTER 3—PROMPT CORRECTIVE ACTION Sec. 397. Transfer and rights of employees of erly influencing appraisals. Sec. 345. Capital classifications. Department of Housing and Sec. 230. Mortgage insurance premium re- Sec. 346. Supervisory actions applicable to Urban Development. funds. undercapitalized regulated enti- Sec. 398. Transfer of appropriations, prop- Sec. 231. Savings provision. ties. erty, and facilities. Sec. 232. Implementation. Sec. 347. Supervisory actions applicable to TITLE IV—EMERGENCY MORTGAGE Subtitle B—FHA Manufactured Housing significantly undercapitalized LOAN MODIFICATION Loan Insurance Modernization regulated entities. Sec. 401. Short title. Sec. 251. Short title. Sec. 348. Authority over critically under- Sec. 402. Safe harbor for qualified loan modi- Sec. 252. Findings and purposes. capitalized regulated entities. fications or workout plans for Sec. 253. Exception to limitation on finan- Sec. 349. Conforming amendments. certain residential mortgage cial institution portfolio. CHAPTER 4—ENFORCEMENT ACTIONS loans. Sec. 254. Insurance benefits. Sec. 351. Cease-and-desist proceedings. TITLE V—OTHER HOUSING PROVISIONS Sec. 255. Maximum loan limits. Sec. 352. Temporary cease-and-desist pro- Sec. 256. Insurance premiums. Sec. 501. Depository Institution Community ceedings. Development Investments En- Sec. 257. Technical corrections. Sec. 353. Prejudgment attachment. hancement . Sec. 258. Revision of underwriting criteria. Sec. 354. Enforcement and jurisdiction. Sec. 502. Preservation of certain affordable Sec. 259. Requirement of social security ac- Sec. 355. Civil money penalties. count number for assistance. Sec. 356. Removal and prohibition authority. housing dwelling units. Sec. 260. GAO study of mitigation of tornado Sec. 357. Criminal penalty. Sec. 503. Eligibility of certain projects for risks to manufactured homes. Sec. 358. Subpoena authority. enhanced voucher assistance. Sec. 504. Transfer of certain rental assist- TITLE III—REFORM OF GOVERNMENT- Sec. 359. Conforming amendments. ance contracts. SPONSORED ENTITIES FOR HOUSING CHAPTER 5—GENERAL PROVISIONS Sec. 505. Protection against discriminatory FINANCE Sec. 361. Boards of enterprises. treatment. Sec. 301. Short title. Sec. 362. Report on portfolio operations, TITLE I—FHA HOUSING STABILIZATION Sec. 302. Definitions. safety and soundness, and mis- AND HOMEOWNERSHIP RETENTION Subtitle A—Reform of Regulation of sion of enterprises. Enterprises and Federal Home Loan Banks Sec. 363. Conforming and technical amend- SEC. 101. SHORT TITLE. ments. This title may be cited as the ‘‘FHA Hous- CHAPTER 1—IMPROVEMENT OF SAFETY AND Sec. 364. Study of alternative secondary ing Stabilization and Homeownership Reten- SOUNDNESS market systems. tion Act of 2008’’. Sec. 311. Establishment of the Federal Hous- Sec. 365. Effective date. Subtitle A—Homeownership Retention ing Finance Agency. Subtitle B—Federal Home Loan Banks Sec. 312. Duties and authorities of Director. SEC. 111. PURPOSES. Sec. 313. Federal Housing Enterprise Board. Sec. 371. Definitions. The purposes of this subtitle are— Sec. 314. Authority to require reports by Sec. 372. Directors. (1) to create an FHA program, which is vol- regulated entities. Sec. 373. Federal Housing Finance Agency untary on the part of borrowers and existing Sec. 315. Disclosure of income and chari- oversight of Federal Home mortgage loan holders, including both exist- table contributions by enter- Loan Banks. ing senior mortgage loan holders and exist- prises. Sec. 374. Joint activities of Banks. ing subordinate mortgage loan holders, to in- Sec. 316. Assessments. Sec. 375. Sharing of information between sure refinance loans for substantial numbers Sec. 317. Examiners and accountants. Federal Home Loan Banks. of borrowers at risk of foreclosure, at levels Sec. 318. Prohibition and withholding of ex- Sec. 376. Reorganization of Banks and vol- which are reasonably likely to be sustainable ecutive compensation. untary merger. through enhanced affordability of debt serv- Sec. 319. Reviews of regulated entities. Sec. 377. Securities and Exchange Commis- ice; Sec. 320. Inclusion of minorities and women; sion disclosure. (2) to provide flexible underwriting for diversity in Agency workforce. Sec. 378. Community financial institution FHA-insured loans under such a program to Sec. 321. Regulations and orders. members. provide refinancing opportunities under fis- Sec. 322. Non-waiver of privileges. Sec. 379. Technical and conforming amend- cally responsible terms, including higher Sec. 323. Risk-based capital requirements. ments. fees commensurate with higher risk levels, a Sec. 324. Minimum and critical capital lev- Sec. 380. Study of affordable housing pro- seasoning requirement for higher debt to in- els. gram use for long-term care fa- come loans, and additional program controls Sec. 325. Review of and authority over enter- cilities. to limit and control risk; prise assets and liabilities. Sec. 381. Effective date. (3) to bar speculators and second home Sec. 326. Corporate governance of enter- Subtitle C—Transfer of Functions, Per- owners from participation in such program; prises. sonnel, and Property of Office of Federal (4) to require existing mortgage loan hold- Sec. 327. Required registration under Securi- Housing Enterprise Oversight, Federal ers to take substantial loan writedowns in ties Exchange Act of 1934. Housing Finance Board, and Department of exchange for having the Federal Government Sec. 328. Liaison with Financial Institutions Housing and Urban Development and the borrower assume the ongoing risk of Examination Council. CHAPTER 1—OFFICE OF FEDERAL HOUSING the refinanced loan; Sec. 329. Guarantee fee study. ENTERPRISE OVERSIGHT (5) to set a loan-to-value limit on such Sec. 330. Conforming amendments. Sec. 385. Abolishment of OFHEO. loans that provides the FHA with an equity CHAPTER 2—IMPROVEMENT OF MISSION Sec. 386. Continuation and coordination of buffer against potential loan losses, provides SUPERVISION certain regulations. protections against the risk of future home Sec. 331. Transfer of product approval and Sec. 387. Transfer and rights of employees of price declines, and creates incentives for bor- housing goal oversight. OFHEO. rowers to maintain payments on the loan; Sec. 332. Review of enterprise products. Sec. 388. Transfer of property and facilities. (6) to protect the FHA against losses which may exceed normal FHA loss levels by estab- Sec. 333. Conforming loan limits. CHAPTER 2—FEDERAL HOUSING FINANCE lishing higher fee levels, including an exit Sec. 334. Annual housing report regarding BOARD regulated entities. fee and profit sharing during the first five Sec. 391. Abolishment of the Federal Hous- Sec. 335. Annual reports by regulated enti- years of the loan, with such higher fee levels ing Finance Board. ties on affordable housing effectively being funded through the re- Sec. 392. Continuation and coordination of stock. quired lender writedown; certain regulations. Sec. 336. Mortgagor identification require- (7) to provide a fair level of incentives for Sec. 393. Transfer and rights of employees of ments for mortgages of regu- junior lien holders to provide the necessary the Federal Housing Finance lated entities. releases of their lien interests, in order to Board. Sec. 337. Revision of housing goals. meet program requirements that all out- Sec. 394. Transfer of property and facilities. Sec. 338. Duty to serve underserved markets. standing liens must be extinguished, and Sec. 339. Monitoring and enforcing compli- CHAPTER 3—DEPARTMENT OF HOUSING AND thereby permit the refinancing to be com- ance with housing goals. URBAN DEVELOPMENT pleted; Sec. 340. Affordable Housing Fund. Sec. 395. Termination of enterprise-related (8) to enhance the administrative capacity Sec. 341. Consistency with mission. functions. of the FHA to carry out its expanded role Sec. 342. Enforcement. Sec. 396. Continuation and coordination of under the program through establishment of Sec. 343. Conforming amendments. certain regulations. an Oversight Board which adds expertise

VerDate Mar 15 2010 15:08 Nov 08, 2010 Jkt 069102 PO 00000 Frm 00029 Fmt 0688 Sfmt 0634 E:\BR08\H08MY8.001 H08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD May 8, 2008 CONGRESSIONAL RECORD—HOUSE, Vol. 154, Pt. 6 8173 from the Federal Reserve and the Depart- mortgage being insured under this section not apply to mortgages insured under this ment of the Treasury, through additional meets the requirements of this section, as es- section. funding to contract out for the provision of tablished by the Oversight Board, and of sec- ‘‘(5) REQUIRED WAIVER OF PREPAYMENT PEN- any needed expertise in designing program tion 203, except as modified by this section. ALTIES AND FEES.—All penalties for prepay- requirements and oversight, and through ad- ‘‘(2) ESTABLISHMENT AND IMPLEMENTATION ment of the existing mortgage or mortgages, ditional funding to increase FHA personnel OF PROGRAM REQUIREMENTS.—The Oversight and all fees and penalties related to default resources as needed to handle the increased Board shall establish program requirements or delinquency on all existing mortgages or loan volume resulting from the program; and standards under this section and the mortgages, shall be waived or forgiven. (9) to sunset the program when it is no Secretary shall implement such require- ‘‘(6) REQUIRED LOAN REDUCTION.— longer needed; and ments and standards. The Oversight Board ‘‘(A) REDUCTION OF INDEBTEDNESS UNDER (10) to study the need for and efficacy of an and the Secretary may establish and imple- EXISTING SENIOR MORTGAGE.—The amount of auction or bulk refinancing mechanism to ment any requirements or standards through indebtedness on the existing mortgage or facilitate more expeditious refinancing of interim guidance and mortgagee letters. mortgages on the residence shall have been larger volumes of existing mortgages that ‘‘(c) REQUIREMENTS.—To be eligible for in- substantially reduced by such percentage as are at risk for foreclosure into FHA-insured surance under this section, a mortgage shall the Oversight Board may require, and such mortgages. comply with all of the following require- reduction shall be at least sufficient to— SEC. 112. INSURANCE OF HOMEOWNERSHIP RE- ments: ‘‘(i) provide for the refinancing of such ex- TENTION MORTGAGES. ‘‘(1) OWNER-OCCUPIED PRINCIPAL RESIDENCE isting mortgage or mortgages in an amount (a) MORTGAGE INSURANCE PROGRAM.—Title REQUIREMENT.—The residence securing the not greater than 90 percent of the current ap- II of the National Housing Act (12 U.S.C. 1707 mortgage insured under this section shall be praised value of the property involved; et seq.) is amended by adding at the end the occupied by the mortgagor as the principal ‘‘(ii) pay the full amount of the single pre- following new section: residence of the mortgagor and the mort- mium to be collected pursuant to subsection ‘‘SEC. 257. INSURANCE OF HOMEOWNERSHIP RE- gagor shall provide a certification to the (e)(1) (which shall be an amount equal to 3.0 TENTION MORTGAGES. originator of the mortgage that such resi- percent of the amount of the original insured ‘‘(a) OVERSIGHT BOARD.— dence securing the mortgage insured under principal obligation of the mortgage insured ‘‘(1) ESTABLISHMENT.—There is hereby es- this section is the only residence in which under this section and which shall serve as tablished the Refinance Program Oversight the mortgagor has any present ownership in- an additional reserve to cover possible loan Board (in this section referred to as the terest. With regard to such certification, the losses); and ‘Oversight Board’). Oversight Board may create exceptions for ‘‘(iii) pay the full amount of the loan origi- ‘‘(2) MEMBERSHIP.—The Oversight Board mortgagors who have only a partial owner- nation fee and any other closing costs, not to shall consist of the following members or ship interest in a residence other than the exceed 2.0 percent of the amount of the origi- their designees: residence securing the mortgage insured nal insured principal obligation of the mort- ‘‘(A) The Secretary of the Treasury. under this section. gage insured under this section. ‘‘(B) The Secretary of Housing and Urban ‘‘(2) LACK OF CAPACITY TO PAY EXISTING ‘‘(B) EXTINGUISHMENT OF DEBT BY REFI- Development. MORTGAGE OR MORTGAGES.— NANCING.— ‘‘(C) The Chairman of the Board of Gov- ‘‘(A) BORROWER CERTIFICATION.— ‘‘(i) REQUIRED AGREEMENT.—All existing ernors of the Federal Reserve System. ‘‘(i) The mortgagor shall provide a certifi- holders of mortgage liens on the property se- ‘‘(3) NO ADDITIONAL COMPENSATION.—Mem- cation to the originator of the mortgage that curing the mortgage to be insured under this bers of the Oversight Board shall receive no the mortgagor— section shall agree to accept the proceeds of additional pay by reason of service on the ‘‘(I) has not intentionally defaulted on the the insured loan as payment in full of all in- Oversight Board. existing mortgage or mortgages; and debtedness under all existing mortgages, and ‘‘(4) RESPONSIBILITIES.—The Oversight ‘‘(II) has not knowingly, or willfully and all encumbrances related to such mortgages Board shall be responsible for establishing with actual knowledge furnished material shall be removed. The Oversight Board may program and oversight requirements for the information known to be false for the pur- take such actions as the Oversight Board program under this section, which shall in- pose of obtaining the existing mortgage or considers necessary or appropriate to facili- clude— mortgages. tate coordination and agreement between ‘‘(A) detailed program requirements under ‘‘(ii) The mortgagor shall agree in writing the holders of the existing senior mortgage subsection (c); that the mortgagor shall be liable to repay and any existing subordinate mortgages, ‘‘(B) flexible underwriting criteria under the FHA any direct financial benefit taking into consideration the subordinate subsection (d); achieved from the reduction of indebtedness lien status of such subordinate mortgages, to ‘‘(C) a mortgage premium structure under on the existing mortgage or mortgages on comply with the requirement under this sub- subsection (e); the residence refinanced under this section paragraph. ‘‘(D) a reasonable fee and rate limitation derived from misrepresentations made in the ‘‘(ii) TREATMENT OF MULTIPLE MORTGAGE under subsection (f); certifications and documentation required LIENS.—In addition to clause (i), the Over- ‘‘(E) enhancement of FHA capacity under under this subparagraph, subject to the dis- sight Board shall adopt one of the following subsection (i), including oversight of such ac- cretion of the Oversight Board. approaches for all mortgages or such classes tivities and personnel as may be contracted ‘‘(B) CURRENT BORROWER DEBT-TO-INCOME of mortgages as the Oversight Board may de- for as provided therein; RATIO.—As of March 1, 2008, the mortgagor termine and may, from time to time, recon- ‘‘(F) monitoring of underwriting risk under shall have had a ratio of mortgage debt to sider: subsection (j); and income, taking into consideration all exist- ‘‘(I) FIXED PRICE.—As a requirement for ‘‘(G) such additional requirements as may ing mortgages at such time, greater than 35 participating in this program, all existing be necessary and appropriate to oversee and percent. lien holders will agree to not provide any implement the program. ‘‘(C) LOSS MITIGATION RESPONSIBILITIES.— payment to subordinate lien holders other ‘‘(5) USE OF RESOURCES.—In carrying out its This section may not be construed to alter than such payment in accordance with a for- functions under this section, the Oversight or in any way affect the responsibilities of mula established by the Oversight Board as Board may utilize, with their consent and to any party (including the mortgage servicer) set forth in clause (iii); except that the Over- the extent practical, the personnel, services, to engage in any or all loan modification or sight Board may establish a short period and facilities of the Department of the other loss mitigation strategies to maximize within which first and subordinate lien hold- Treasury, the Department of Housing and value to investors as established by any ap- ers may negotiate to extinguish all subordi- Urban Development, the Board of Governors plicable contract. nate liens for compensation that may be dif- of the Federal Reserve System, the Federal ‘‘(3) ELIGIBILITY OF MORTGAGES BY DATE OF ferent from the amount determined under Reserve Banks, and other Federal agencies, ORIGINATION.—The existing senior mortgage such formula set forth in clause (iii). with or without reimbursement therefore. shall have been originated on or before De- ‘‘(II) SHARED EQUITY.—The Oversight Board ‘‘(b) AUTHORITY.— cember 31, 2007. may require the mortgagor under a mort- ‘‘(1) IN GENERAL.—The Secretary shall, sub- ‘‘(4) MAXIMUM LOAN-TO-VALUE RATIO FOR gage insured under this section to agree to ject only to the absence of qualified requests NEW LOANS.—The mortgage being insured share a portion of any future equity in the for insurance under this section and to the under this section shall involve a principal mortgaged property with holders of existing limitations under subsection (h) of this sec- obligation (including such initial service subordinate mortgages, in accordance with a tion and section 531(a), make commitments charges, appraisal, inspection, and other fees formula for such shared equity established to insure and insure any mortgage covering as the Secretary shall approve and including by the Oversight Board as set forth in clause a 1- to 4-family residence that is made for the mortgage insurance premium paid pursu- (iii), except that payments of such shared eq- the purpose of paying or prepaying out- ant to subsection (e)(1)) in an amount not to uity may be made only after the Secretary standing obligations under an existing mort- exceed 90 percent of the current appraised recovers all amounts owed to the Secretary gage or mortgages on the residence if the value of the property. Section 203(d) shall with respect to such mortgage pursuant to

VerDate Mar 15 2010 15:08 Nov 08, 2010 Jkt 069102 PO 00000 Frm 00030 Fmt 0688 Sfmt 0634 E:\BR08\H08MY8.001 H08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD 8174 CONGRESSIONAL RECORD—HOUSE, Vol. 154, Pt. 6 May 8, 2008 the program under this section (including ‘‘(i) 3 percent of the amount of the original subsection (n) of the program under this sec- amounts owed pursuant to paragraph (8)). insured principal obligation of the mortgage tion. ‘‘(iii) FORMULA.—In determining a formula (or the entire amount of the net proceeds de- ‘‘(12) INELIGIBILITY FOR FRAUD CONVIC- for determining any payments to subordi- scribed in subparagraph (C) if such net pro- TION.—The mortgagor shall not have been nate lien holders pursuant to subclauses (I) ceeds are less than 3 percent of the amount convicted under Federal or State law for and (II) of clause (ii), and in any reconsider- of the original insured principal obligation mortgage fraud during the 7-year period end- ation of such formula as the Oversight Board of the mortgage); or ing upon the insurance of the mortgage may from time to time undertake, the Over- ‘‘(ii) a percentage of the portion of the net under this section. sight Board shall take into consideration the proceeds available for profit-sharing, as de- ‘‘(13) LENDER REVIEW.—The mortgagee current market value of such liens. In no scribed in subparagraph (E), which shall be— under the mortgage shall conduct an elec- case may a formula provide for the payment ‘‘(I) in the case of any refinancing, sale, or tronic database search of the mortgagor’s of more than 1 percent of the current ap- disposition occurring during the first year of criminal history to determine if the mort- praised value of the mortgaged property to a the term of the mortgage, 100 percent of such gagor has had a conviction described in para- subordinate lien holder if the outstanding net proceeds; graph (12). The mortgagee may charge the balance owed to more senior lien holders is ‘‘(II) in the case of any refinancing, sale, or mortgagor a reasonable fee for the actual equal to or exceeds such current appraised disposition occurring during the second year cost of the search not to exceed a maximum value. of the term of the mortgage, 80 percent; rate established by the Oversight Board. The ‘‘(iv) VOLUNTARY PROGRAM.—This section ‘‘(III) in the case of any refinancing, sale, Oversight Board may provide clarification, if may not be construed to require any holder or disposition occurring during the third needed, to help mortgagees identify any dif- of any existing mortgage to participate in year of the term of the mortgage, 60 percent; ferences among the States in how they re- the program under this section generally, or and port mortgage fraud convictions. The Over- with respect to any particular loan. ‘‘(IV) in the case of any refinancing, sale, sight Board shall establish procedures suffi- ‘‘(v) SOURCE OF PAYMENTS FOR SUBORDINATE or disposition occurring during the fourth cient to allow the mortgagor to challenge a LOANS.—Any amounts paid to holders of any year of the term of the mortgage or at any mortgagee’s determination with respect to existing subordinate mortgages in connec- time thereafter, 50 percent; paragraph (12) (including to correct inac- tion with the origination and insurance of a except that such percentage of proceeds shall curacies resulting from theft of the mortga- mortgage under this section shall derive be reduced by all fees the Secretary has col- gor’s identity or personally identifiable in- only from— lected for the mortgage prior to such refi- formation). ‘‘(I) the holder of the existing senior mort- nancing, sale, or disposition. ‘‘(14) APPRAISALS.—Any appraisal con- gage; or ‘‘(E) NET PROCEEDS AVAILABLE FOR PROFIT- ducted in connection with a mortgage in- ‘‘(II) in the case only of the shared equity sured under this section shall— SHARING.—With respect to any mortgage in- approach under clause (ii)(II), the mortgagor sured under this section, the net proceeds ‘‘(A) be based on the current value of the under the mortgage insured under this sec- available for purposes of subparagraph (D)(ii) property; tion shall be any proceeds resulting from the sale, ‘‘(B) be conducted in accordance with title ‘‘(7) REQUIRED REDUCTION OF DEBT SERV- refinancing, or other disposition of the resi- XI of the Financial Institutions Reform, Re- ICE.—The debt service payments due under covery, and Enforcement Act of 1989 (12 dence securing the mortgage that remain the mortgage insured under this section U.S.C. 3331 et seq.); after deducting the original insured prin- shall be in an amount that is substantially ‘‘(C) be completed by an appraiser who cipal obligation of the mortgage. In the case reduced from the debt service payments due meets the competency requirements of the of a refinance, non-arms length transaction, under the existing mortgage or mortgages, Uniform Standards of Professional Appraisal or such other transaction as the Oversight which reduction may be achieved through a Practice; Board shall determine, the proceeds shall be reduction of indebtedness, a reduction in the ‘‘(D) be wholly consistent with the ap- based on the current appraised value at the interest rate being paid, or an extension of praisal standards, practices, and procedures time of the refinance or transaction. the term of the mortgage, or any combina- under section 202(e) of this Act that apply to ‘‘(F) AUTHORITY TO PROHIBIT NEW SECOND tion thereof. all loans insured under this Act; and LIENS.—The Oversight Board shall prohibit ‘‘(8) FINANCIAL RECOVERY TO FEDERAL GOV- ‘‘(E) comply with the requirements of sub- borrowers from granting a new second lien ERNMENT THROUGH EXIT PREMIUM.— section (g) of this section (relating to ap- on the mortgaged property during the first ‘‘(A) SUBORDINATE LIEN.—The mortgage praisal independence). five years of the term of the mortgage in- shall provide that the Secretary shall retain ‘‘(15) STATEMENT OF LOAN TERMS.— sured under this section, except as the Over- a lien on the residence involved, which shall ‘‘(A) REQUIREMENT.—The mortgagor shall be subordinate to the mortgage insured sight Board determines to be necessary to have been provided by the mortgagee, not under this section but senior to all other ensure the appropriate maintenance of the later than three days before closing for the mortgages on the residence that may exist mortgaged property. mortgage, a form described in subparagraph at any time, and which shall secure the re- ‘‘(9) DOCUMENTATION AND VERIFICATION OF (B) appropriately and accurately completed payment of the amount due under subpara- INCOME.—In complying with the FHA under- by the mortgagee. graph (D). writing requirements under the program ‘‘(B) FORM.—The form described in this ‘‘(B) NO INTEREST OR PAYMENT DURING under this section, the mortgagee shall docu- subparagraph shall be a single page, written MORTGAGE.—The amount secured by the lien ment and verify the income of the mortgagor disclosure regarding the mortgage loan to be retained by the Secretary pursuant to sub- or non-filing status by procuring (A) an in- insured under this section that, when com- paragraph (A) shall not bear interest and come tax return transcript of the income tax pleted by the mortgagee, sets forth, in ac- shall not be repayable to the Secretary ex- returns of the mortgagor, or (B) a copy of cordance with such requirements as the Sec- cept as provided in subparagraph (D) of this the income tax returns for the Internal Rev- retary shall by regulation establish a best paragraph. enue Service, for the two most recent years possible estimate of— ‘‘(C) NET PROCEEDS AVAILABLE FOR EXIT for which the filing deadline for such years ‘‘(i) the total loan amount under the mort- PREMIUM.—Upon the sale, refinancing, or has passed and by any other method, in ac- gage; other disposition of the residence securing a cordance with procedures and standards that ‘‘(ii) the loan-to-value ratio for the mort- mortgage insured under this section, any the Oversight Board shall establish. gage; proceeds resulting from such disposition that ‘‘(10) FIXED RATE MORTGAGE.—The mort- ‘‘(iii) the final maturity date for the mort- remain after deducting the remaining in- gage insured under this section shall bear in- gage; sured principal balance of the mortgage in- terest at a single rate that is fixed for the ‘‘(iv) the amount of any prepayment fee to sured under this section shall be available to entire term of the mortgage. be charged if the mortgage is paid in full be- meet the obligation under subparagraph (D). ‘‘(11) MAXIMUM LOAN AMOUNT.—Notwith- fore the final maturity date for the mort- In the case of a refinance, non-arms length standing section 203(b)(2), the mortgage gage, including the percentages of any net transaction, or such other transaction as the being insured under this section shall in- proceeds to be received by the Secretary pur- Oversight Board shall determine, the pro- volve a principal obligation in an amount suant to paragraph (8)(D)(ii); ceeds shall be based on the current appraised that does not exceed the limitation (for a ‘‘(v) the amount of the exit premium under value at the time of the refinance or trans- property of the applicable size) on the the mortgage pursuant to subsection (e)(3); action. amount of the principal obligation that ‘‘(vi) the interest rate under the mortgage ‘‘(D) EXIT PREMIUM.—Upon any refinancing would be allowable under the terms of sec- expressed as an annual percentage rate, and of the mortgage insured under this section or tion 202(a) of the Economic Stimulus Act of the amount of the monthly payment due any sale or disposition of the residence se- 2008 if the mortgage were insured pursuant under such rate; curing the mortgage, the Secretary shall, to such section. The limitation on the ‘‘(vii) the fully indexed rate of interest subject to the availability of sufficient net amount of the principal obligation allowable under the mortgage expressed as an annual proceeds described in subparagraph (C), re- under such Act shall apply for the purposes percentage rate and the amount of the ceive the greater of— of this section until the termination under monthly payment due under such rate;

VerDate Mar 15 2010 15:08 Nov 08, 2010 Jkt 069102 PO 00000 Frm 00031 Fmt 0688 Sfmt 0634 E:\BR08\H08MY8.001 H08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD May 8, 2008 CONGRESSIONAL RECORD—HOUSE, Vol. 154, Pt. 6 8175 ‘‘(viii) the monthly household income of writer of the insured loan to provide such cipal obligation of all mortgages insured the borrower upon which the mortgage is representations and warranties as the Over- under this section may not exceed based; sight Board considers necessary or appro- $300,000,000,000. ‘‘(ix) the amount of the monthly payment priate for the Secretary to enforce compli- ‘‘(i) ENHANCEMENT OF FHA CAPACITY.— due under the mortgage, and the amount of ance with all underwriting and appraisal Under the direction of the Oversight Board, such initial monthly payment plus monthly standards of the program. the Secretary shall take such actions as may amounts due for taxes and insurance on the ‘‘(e) PREMIUMS.—For each mortgage in- be necessary to— property for which the mortgage is made, sured under this section, the Oversight ‘‘(1) contract for the establishment of un- both expressed as a percentage of the month- Board shall establish and the Secretary shall derwriting criteria, automated underwriting ly household income of the borrower; and collect— systems, pricing standards, and other factors ‘‘(x) the aggregate amount of settlement ‘‘(1) at the time of insurance, a single pre- relating to eligibility for mortgages insured charges for all settlement services provided mium payment in an amount equal to 3.0 under this section; in connection with the mortgage, the percent of the amount of the original insured ‘‘(2) contract for independent quality re- amount of such charges that are included in principal obligation of the mortgage, which views of underwriting, including appraisal the principal amount and the amount of such shall be paid from the proceeds of the mort- reviews and fraud detection, of mortgages in- charges the borrower must pay at closing, gage being insured under this section, sured under this section or pools of such the aggregate amount of mortgagee’s fees through the reduction of the amount of in- mortgages; and connection with the mortgage, and the ag- debtedness on the existing senior mortgage ‘‘(3) increase personnel of the Department gregate amount of other fees or required required under subsection (c)(6)(A); as necessary to process or monitor the proc- payments in connection with the mortgage. ‘‘(2) in addition to the premium under essing of mortgages insured under this sec- ‘‘(d) FLEXIBLE UNDERWRITING CRITERIA.— paragraph (1), annual premium payments in tion. ‘‘(1) IN GENERAL.—The Oversight Board an amount equal to 1.50 percent of the re- ‘‘(j) MONITORING OF UNDERWRITING RISK.— shall establish, and the Secretary acting on maining insured principal balance of the ‘‘(1) MONITORING OF DESIGNATED UNDER- behalf of the Oversight Board shall imple- mortgage; and WRITERS.—The Oversight Board and the Sec- ment, underwriting standards for mortgages ‘‘(3) an exit premium in the amount deter- retary shall monitor independent quality re- insured under this section that— mined under subsection (c)(8), but which views as established pursuant to subsection ‘‘(A) ensure that each mortgagor under a shall not be less than 3.0 percent of the origi- (i)(2) to— mortgage insured under this section has a nal insured principal obligation of the mort- ‘‘(A) determine compliance of designated reasonable expectation of repaying the mort- gage, subject only to the availability of suf- underwriters with underwriting standards; gage, taking into consideration the mortga- ficient net proceeds from sale, refinancing, ‘‘(B) determine rates of delinquency, gor’s income, assets, liabilities, payment his- or other disposition of the property, as deter- claims rates, and loss rates of designated un- tory, and other applicable criteria, but which mined in subsection (c)(8). derwriters; and shall not result in a denial of insurance sole- ‘‘(f) ORIGINATION FEES AND MORTGAGE ‘‘(C) terminate eligibility of designated un- ly on the basis of the mortgagor’s current RATE.—The Oversight Board shall establish derwriters that do not meet minimum per- FICO or other credit scores, or any delin- and the Secretary shall implement a reason- formance standards as the Oversight Board quency or default by the mortgagor under able limitation on origination fees for mort- may establish and the Secretary imple- the existing mortgage or mortgages, or any gages insured under this section and shall es- ments. case filed under title 11, United States Code, tablish procedures to ensure that interest ‘‘(2) REPORTS BY OVERSIGHT BOARD.—The by the mortgagor; and rates on such mortgages shall be commensu- Oversight Board shall submit monthly re- ‘‘(B) subject to the provisions of subpara- rate with market rate interest rates on such ports to the Congress identifying the graph (A), permit a total debt-to-income types of loans. progress of the program for mortgage insur- ratio of up to 43 percent. ‘‘(g) APPRAISAL INDEPENDENCE.— ance under this section, which shall contain ‘‘(2) EXCEPTION.— ‘‘(1) PROHIBITIONS ON INTERESTED PARTIES the following information for each month: ‘‘(A) IN GENERAL.—Subject to the under- IN A REAL ESTATE TRANSACTION.—No mort- ‘‘(A) The number of new mortgages insured writing standards established under para- gage lender, mortgage broker, mortgage under this section, including the location of graph (1)(A) and any additional requirements banker, real estate broker, appraisal man- the properties subject to such mortgages by that the Oversight Board considers appro- agement company, employee of an appraisal census tract. priate, the Oversight Board shall permit a management company, nor any other person ‘‘(B) The aggregate principal obligation of total debt-to-income ratio of more than 43 with an interest in a real estate transaction new mortgages insured under this section. percent, but not more than 50 percent, if the involving an appraisal in connection with a ‘‘(C) The average amount by which the in- mortgagor has made, on a timely basis be- mortgage insured under this section shall debtedness on existing mortgages is reduced fore the endorsement of the mortgage in- improperly influence, or attempt to improp- in accordance with subsection (c)(6). sured under this section, not less than six erly influence, through coercion, extortion, ‘‘(D) The average amount by which the months of payments in an amount not less collusion, compensation, instruction, induce- debt service payments on existing mortgages than the amount of the monthly payment ment, intimidation, non-payment for serv- is reduced in accordance with subsection due under the mortgage to be insured under ices rendered, or bribery, the development, (c)(7). this section. The holder of the existing sen- reporting, result, or review of a real estate ‘‘(E) The amount of premiums collected for ior mortgage shall exercise forbearance with appraisal sought in connection with the insurance of mortgages under this section. respect to such mortgage during the period mortgage. ‘‘(F) The claim and loss rates for mort- in which such payments are made. ‘‘(2) EXCEPTIONS.—The requirements of gages insured under this section. ‘‘(B) COMPUTATION OF DEBT-TO-INCOME paragraph (1) shall not be construed as pro- ‘‘(G) The race, ethnicity, gender, and in- RATIO.— In computing the mortgagor’s total hibiting a mortgage lender, mortgage come of the mortgagors, aggregated by geo- debt-to-income ratio for purposes of mort- broker, mortgage banker, real estate broker, graphical areas at least as specific as census gage qualification under the underwriting appraisal management company, employee tracts, except where necessary to protect standards established pursuant to this sec- of an appraisal management company, or privacy of the borrower. tion— any other person with an interest in a real ‘‘(H) Any other information that the Over- ‘‘(i) if the mortgagor is a debtor in a case estate transaction from asking an appraiser sight Board considers appropriate. under chapter 13 of title 11, United States to provide 1 or more of the following serv- ‘‘(3) REPORT BY INSPECTOR GENERAL.—The Code, payments on recurring debts other ices: Inspector General of the Department of than housing expenses shall be based on the ‘‘(A) Consider additional, appropriate prop- Housing and Urban Development shall con- amounts being paid on such debts under the erty information, including the consider- duct an annual audit of the program for mortgagor’s confirmed plan under such chap- ation of additional comparable properties to mortgage insurance under this section to de- ter; and make or support an appraisal. termine compliance with this section and ‘‘(ii) if the mortgagor is a debtor in a case ‘‘(B) Provide further detail, substantiation, program rules. under chapter 7 of title 11, United States or explanation for the appraiser’s value con- ‘‘(k) GNMA COMMITMENT AUTHORITY.— Code, recurring debts that are to be dis- clusion. ‘‘(1) GUARANTEES.—The Secretary shall charged in that case shall not be considered. ‘‘(C) Correct errors in the appraisal report. take such actions as may be necessary to en- ‘‘(3) AUTHORITY.—The Oversight Board may ‘‘(3) CIVIL MONETARY PENALTIES.—The Sec- sure that securities based on and backed by alter the ratios under this subsection for a retary may impose a civil money penalty for a trust or pool composed of mortgages in- particular class of borrowers subject to such any knowing and material violation of para- sured under this section are available to be requirements as the Board determines is nec- graph (1) under the same terms and condi- guaranteed by the Government National essary and appropriate to fulfill the purposes tions as are authorized in section 536(a) of Mortgage Association as to the timely pay- of this Act. this Act. ment of principal and interest. ‘‘(4) REPRESENTATIONS AND WARRANTIES.— ‘‘(h) LIMITATION ON AGGREGATE INSURANCE ‘‘(2) GUARANTEE AUTHORITY.—To carry out The Oversight Board shall require the under- AUTHORITY.—The aggregate original prin- the purposes of section 306 of the National

VerDate Mar 15 2010 15:08 Nov 08, 2010 Jkt 069102 PO 00000 Frm 00032 Fmt 0688 Sfmt 0634 E:\BR08\H08MY8.001 H08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD 8176 CONGRESSIONAL RECORD—HOUSE, Vol. 154, Pt. 6 May 8, 2008 Housing Act (12 U.S.C. 1721), the Government ‘‘(C) $35,000,000 of the funds made available who are eligible under this section for insur- National Mortgage Association may enter pursuant to this paragraph shall be used by ance of refinancing mortgages, and in mak- into new commitments to issue guarantees the Neighborhood Reinvestment Corporation ing funds reserved under this subparagraph of securities based on or backed by mort- (referred to in this subparagraph as the available for such purpose, the Secretary gages insured under this section, not exceed- ‘NRC’) to make grants to State and local shall give preference to assistance for pro- ing $300,000,000,000. The amount of authority legal organizations or attorneys that have grams that have a proven history of out- provided under the preceding sentence to demonstrated legal experience in home fore- reach within minority communities; and enter into new commitments to issue guar- closure or eviction law to provide legal as- ‘‘(2) $150,000,000 for costs of activities under antees is in addition to any amount of au- sistance related to home ownership preserva- subsection (i). thority to make new commitments to issue tion, home foreclosure prevention, and ten- ‘‘(p) AUDIT AND REPORT BY INSPECTOR GEN- guarantees that is provided to the Associa- ancy associated with home foreclosure or to ERAL.— tion under any other provision of law. counseling intermediaries that have been ap- ‘‘(1) AUDIT.—The Inspector General of the ‘‘(l) SPECIAL RISK INSURANCE FUND.—The proved by the Department of Housing and Department of Housing and Urban Develop- insurance of each mortgage under this sec- Urban Development for the purpose of mak- ment shall conduct an audit of the program tion shall be the obligation of the Special ing such grants or contracting for such legal for loss mitigation counseling funded with Risk Insurance Fund established by section assistance; of the amount provided under amounts made available under subsection 238. this subparagraph, at least 60 percent shall (o)(1) to determine compliance with such ‘‘(m) DEFINITIONS.—For purposes of this be allocated for legal assistance to low-in- subsection. section, the following definitions shall apply: come homeowners or tenants; such attorneys ‘‘(2) REPORTS TO CONGRESS.—Not later than ‘‘(1) EXISTING MORTGAGE.—The term ‘exist- shall be capable of assisting homeowners in March 30, 2009, and every calendar quarter ing mortgage’ means, with respect to a mort- owner-occupied homes or tenants who live in thereafter, the Inspector General shall sub- gage insured under this section, a mortgage homes with mortgages in default, in danger mit to the appropriate committees of the that is to be extinguished, and paid or pre- of default, or subject to or at risk of fore- Congress a report summarizing the activities paid, from the proceeds of the mortgage in- closure or eviction and who have legal issues of the Inspector General and the Neighbor- sured under this section. that cannot be handled by counselors em- hood Reinvestment Corporation during the ‘‘(2) EXISTING SENIOR MORTGAGE.—The term 120-day period ending on the date of such re- ‘existing senior mortgage’ means, with re- ployed by NRC intermediaries; in using the port. Each report shall include, for the pe- spect to a mortgage insured under this sec- amount made available under this subpara- tion, the existing mortgage that has superior graph, the NRC shall give priority consider- riod covered by such report, a detailed state- priority. ation to State and local legal organizations ment of all obligations, expenditures, and and attorneys that (i) provide legal assist- revenues associated with paragraphs (1) and ‘‘(3) EXISTING SUBORDINATE MORTGAGE.— The term ‘existing subordinate mortgage’ ance in the 100 metropolitan statistical areas (2) of subsection (o), including— means, with respect to a mortgage insured (as defined by the Director of the Office of ‘‘(A) obligations and expenditures of appro- under this section, an existing mortgage Management and Budget) with the highest priated funds; that has subordinate priority to the existing home foreclosure rates, and (ii) have the ca- ‘‘(B) the number of homeowners eligible in senior mortgage. pacity to begin using the financial assistance such program; ‘‘(n) SUNSET.— within 90 days after receipt of the assistance; ‘‘(C) the number of homeowners partici- ‘‘(1) IN GENERAL.—Except as provided in as a condition of the receipt of a grant under pating in such program; paragraph (2), the authority of the Secretary this subparagraph, the grantee shall submit ‘‘(D) the status of homeowners within such to make any new commitment to insure any to NRC information relating to the demo- program; mortgage under this section shall terminate graphic characteristics of the assisted home- ‘‘(E) the number of homeowners who have upon the expiration of the 2-year period be- owners or tenants, the dollar amount and rejected assistance from the Neighborhood ginning on the date of the enactment of the terms of the relevant mortgages and the out- Reinvestment Corporation; and FHA Housing Stabilization and Homeowner- come of legal proceedings related to the fore- ‘‘(F) information on participating coun- ship Retention Act of 2008. closure or eviction proceedings, including seling services.’’. ‘‘(2) EXTENSIONS.—The Oversight Board the resolutions thereof; except that no funds (b) SPECIAL RISK INSURANCE FUND.—Sec- may, not more than four times, extend the under this subparagraph shall be used for tion 238 of the National Housing Act (12 authority to enter into new commitments to class action litigation; U.S.C. 1715z–3) is amended— insure mortgages under this section beyond ‘‘(D) $20,000,000 of the funds made available (1) in subsection (a)(1), by striking ‘‘or 243’’ the date specified in paragraph (1), except pursuant to this paragraph shall be used for each place such term appears and inserting that each such extension shall— such counseling for veterans recently return- ‘‘243, or 257’’; and ‘‘(A) be effective only if, before the pro- ing from active duty in the Armed Forces; (2) in subsection (b), by striking ‘‘and 243’’ gram terminates pursuant to paragraph (1) ‘‘(E) the NRC shall give priority consider- each place such term appears and inserting or any previous extension pursuant to this ation for funding with amounts made avail- ‘‘243, and 257’’. paragraph, the Oversight Board— able pursuant to this paragraph, except for (c) FHA REVERSE MORTGAGE PROGRAM.— ‘‘(i) certifies the need for such extension in funds made available under subparagraphs Section 255(g) of the National Housing Act writing to the Congress; and (B), (C), and (D), to entities that have an ef- (12 U.S.C. 1715z–20(g)) is amended by striking ‘‘(ii) causes notice of such extension to be fective plan in place for making contact, in- the first sentence. published in the Federal Register no later cluding personal contact, with defaulted SEC. 113. STUDY OF AUCTION OR BULK REFI- than the beginning of the 3-month period mortgagors, and such a plan may include use NANCE PROGRAM. that ends upon the scheduled termination of third parties (including both for-profit and (a) STUDY.—The Board of Governors of the date of the program; and not-for-profit entities) to make personal con- Federal Reserve System (in this section re- ‘‘(B) be for a period of not more than 6 tact with defaulted mortgagors, or visits to ferred to as the ‘‘Board of Governors’’), in months. such mortgagors, or both; consultation with other members of the ‘‘(o) AUTHORIZATIONS OF APPROPRIATIONS.— ‘‘(F) except with respect to funds reserved Oversight Board established by section 257(a) There is authorized to be appropriated for under subparagraphs (B), (C), and (D), the of the National Housing Act (as added by the each of fiscal years 2008 and 2009— NRC shall give priority consideration for amendment made by section 112(a) of this ‘‘(1) $230,000,000 for providing counseling re- funding with amounts made available pursu- title), shall conduct a study of the need for garding loss mitigation for mortgagors with ant to this paragraph to entities that have a and efficacy of an auction or bulk refi- 1- to 4-family residences, including deter- written plan that has been implemented for nancing mechanism to facilitate refinancing mining eligibility for the program under this providing in-person counseling and for mak- of existing residential mortgages that are at section, with grants to be administered ing contact, including personal contact, with risk for foreclosure into mortgages insured through the Neighborhood Reinvestment defaulted mortgagors, for the purpose of pro- under the mortgage insurance program Corporation, except that— viding counseling or providing information under title II of the National Housing Act. ‘‘(A) funds shall be targeted to States and about available counseling, both (i) prior to The study shall identify and examine various communities based on their levels of fore- commencement of any foreclosure pro- options for mechanisms under which lenders closures and delinquencies in 2007 and 2008; ceedings, and (ii) in the event effective in and servicers of such mortgages may make ‘‘(B) not less than 15 percent of the funds person or phone contact has not been made bids for forward commitments for such in- made available pursuant to this paragraph with such defaulted mortgagors prior there- surance in an expedited manner. shall be provided to counseling organizations to, then prior to the conclusion of the fore- (b) CONTENT.— that target counseling services regarding closure process; and (1) ANALYSIS.—The study required under loss mitigation to minority and low-income ‘‘(G) not less than 2 percent of the funds subsection (a) shall analyze— homeowners or provide such services in made available pursuant to this paragraph (A) the feasibility of establishing a mecha- neighborhoods with high concentrations of shall be used only for identifying and noti- nism that would facilitate the more rapid re- minority and low-income homeowners; fying borrowers under existing mortgages financing of borrowers at risk of foreclosure

VerDate Mar 15 2010 15:08 Nov 08, 2010 Jkt 069102 PO 00000 Frm 00033 Fmt 0688 Sfmt 0634 E:\BR08\H08MY8.001 H08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD May 8, 2008 CONGRESSIONAL RECORD—HOUSE, Vol. 154, Pt. 6 8177 into performing mortgages insured under the Board of Governors of the Federal Re- by the Secretary. Such position shall be a title II of the National Housing Act; serve System, shall conduct a study on fair career-reserved position in the Senior Execu- (B) whether such a mechanism would pro- value accounting standards applicable to fi- tive Service. vide an effective and efficient mechanism to nancial institutions, including depository in- ‘‘(3) FUNCTIONS.— reduce foreclosures on qualified existing stitutions, with respect to their residential ‘‘(A) IN GENERAL.—The Director shall have mortgages; mortgages that are at risk of foreclosure and ultimate responsibility within the Depart- (C) whether the use of an auction or bulk mortgage-backed securities involving such ment, except for the Secretary, for all activi- refinance program is necessary to stabilize mortgages, the effects of such accounting ties and matters relating to homeownership the housing market and reduce the impact of standards on a financial institution’s bal- counseling and rental housing counseling, in- turmoil in that market on the economy of ance sheet and capacity to provide refi- cluding— the United States; nancing to residential mortgagors that are ‘‘(i) research, grant administration, public (D) whether there are other mechanisms or at risk of foreclosure and to residential outreach, and policy development relating to authority that would be useful to reduce mortgagors during periods of market value such counseling; and foreclosure; and declines and increased foreclosures, and the ‘‘(ii) establishment, coordination, and ad- (E) and any other factors that the Board of advisability and feasibility of modifications ministration of all regulations, require- Governors considers relevant. of such standards during periods of market ments, standards, and performance measures (2) DETERMINATIONS.—To the extent that fluctuation in order to maintain the ability under programs and laws administered by the Board of Governors finds that a facility of the institution to continue to carry mort- the Department that relate to housing coun- of the type described in paragraph (1) is fea- gages on residential property at risk of fore- seling, homeownership counseling (including sible and useful, the study shall— closure and assure the availability of credit maintenance of homes), mortgage-related (A) determine and identify any additional to refinance at-risk residential mortgages. counseling (including home equity conver- authority or resources needed to establish (b) REPORT REQUIRED.—The Securities and sion mortgages and credit protection options and operate such a mechanism; Exchange Commission shall submit a report to avoid foreclosure), and rental housing (B) determine whether there is a need for to the Congress before the end of the 90-day counseling, including the requirements, additional authority with respect to the loan period beginning on the date of the enact- standards, and performance measures relat- underwriting criteria included in the amend- ment of this Act containing the findings and ing to housing counseling. ment made by section 112(a) of this title or determinations of the Commission with re- ‘‘(B) SPECIFIC FUNCTIONS.—The Director with respect to eligibility of participating spect to the study conducted under sub- shall carry out the functions assigned to the borrowers, lenders, or holders of liens; section (a) and such administrative and leg- Director and the Office under this section (C) determine whether such underwriting islative recommendations as the Commission and any other provisions of law. Such func- criteria should be established on the basis of may determine to be appropriate. tions shall include establishing rules nec- individual loans, in the aggregate, or other- essary for— SEC. 116. GAO STUDY OF THE EFFECT OF TIGHT- ‘‘(i) the counseling procedures under sec- wise to facilitate the goal of refinancing bor- ENING CREDIT MARKETS IN COMMU- rowers at risk of foreclosure into viable NITIES AFFECTED BY THE tion 106(g)(1) of the Housing and Urban De- loans insured under the National Housing SUBPRIME MORTGAGE FORE- velopment Act of 1968 (12 U.S.C. 1701x(h)(1)); Act. CLOSURE CRISES AND PREDATORY ‘‘(ii) carrying out all other functions of the (c) REPORT.—Not later than the expiration LENDING ON PROSPECTIVE FIRST- Secretary under section 106(g) of the Housing of the 60-day period beginning on the date of TIME HOMEBUYERS SEEKING MORT- and Urban Development Act of 1968, includ- the enactment of this Act, the Board of Gov- GAGES. ing the establishment, operation, and publi- ernors shall submit a report regarding the The Comptroller General of the United cation of the availability of the toll-free results of the study conducted under this States shall conduct a study to analyze the telephone number under paragraph (2) of section to the Committee on Financial Serv- effects of tightening credit markets on pro- such section; ices of the House of Representatives and the spective first-time home buyers who reside ‘‘(iii) carrying out section 5 of the Real Es- Committee on Banking, Housing, and Urban in selected communities that have been most tate Settlement Procedures Act of 1974 (12 Affairs of the Senate. The report shall in- detrimentally affected by both the current U.S.C. 2604) for home buying information clude a detailed description of the analysis subprime mortgage foreclosure crisis and booklets prepared pursuant to such section; required under subsection (b)(1) and of the predatory mortgage lending. Such study ‘‘(iv) carrying out the certification pro- determinations made pursuant to subsection shall also analyze the adequacy of financial gram under section 106(e) of the Housing and (b)(2), and shall include any other findings literacy outreach efforts by agencies of the Urban Development Act of 1968 (12 U.S.C. and recommendations of the Board of Gov- Federal Government tasked with imple- 1701x(e)); ernors pursuant to the study, including iden- menting financial literacy education in such ‘‘(v) carrying out the assistance program tifying various options for mechanisms de- communities and shall assess whether the under section 106(a)(4) of the Housing and scribed in subsection (a). current funding levels for such efforts are at Urban Development Act of 1968, including SEC. 114. TEMPORARY INCREASE IN MAXIMUM sufficient levels to reduce the levels of criteria for selection of applications to re- LOAN GUARANTY AMOUNT FOR CER- subprime mortgage delinquencies and fore- ceive assistance; TAIN HOUSING LOANS GUARANTEED closures and to increase the level of financial ‘‘(vi) carrying out any functions regarding BY SECRETARY OF VETERANS AF- literacy in the selected communities so as to abusive, deceptive, or unscrupulous lending FAIRS. minimize the incidences of predatory mort- practices relating to residential mortgage Notwithstanding subparagraph (C) of sec- gage lending. Not later than the expiration loans that the Secretary considers appro- tion 3703(a)(1) of title 38, United States Code, priate, which shall include conducting the for purposes of any loan described in sub- of the 6-month period beginning on the date study under section 136 of the Expand and paragraph (A)(i)(IV) of such section that is of the enactment of this Act, the Comp- Preserve Home Ownership Through Coun- originated during the period beginning on troller General shall submit a report to the seling Act; the date of the enactment of this Act and Congress setting forth the results of the ending on December 31, 2008, the term ‘‘max- study and including recommendations re- ‘‘(vii) providing for operation of the advi- imum guaranty amount’’ shall mean an garding such funding levels. sory committee established under paragraph amount equal to 25 percent of the higher of— Subtitle B—Office of Housing Counseling (4) of this subsection; ‘‘(viii) collaborating with community- (1) the limitation determined under section SEC. 131. SHORT TITLE. 305(a)(2) of the Federal Home Loan Mortgage based organizations with expertise in the This subtitle may be cited as the ‘‘Expand field of housing counseling; and Corporation Act (12 U.S.C. 1454(a)(2)) for the and Preserve Home Ownership Through ‘‘(ix) providing for the building of capacity calendar year in which the loan is originated Counseling Act’’. to provide housing counseling services in for a single-family residence; or SEC. 132. ESTABLISHMENT OF OFFICE OF HOUS- areas that lack sufficient services. (2) 125 percent of the area median price for ING COUNSELING. ‘‘(4) ADVISORY COMMITTEE.— a single-family residence, but in no case to Section 4 of the Department of Housing ‘‘(A) IN GENERAL.—The Secretary shall ap- exceed 175 percent of the limitation deter- and Urban Development Act (42 U.S.C. 3533) point an advisory committee to provide ad- mined under such section 305(a)(2) for the is amended by adding at the end the fol- vice regarding the carrying out of the func- calendar year in which the loan is originated lowing new subsection: tions of the Director. for a single-family residence. ‘‘(g) OFFICE OF HOUSING COUNSELING.— ‘‘(B) MEMBERS.—Such advisory committee SEC. 115. STUDY OF POSSIBLE ACCOUNTING RE- ‘‘(1) ESTABLISHMENT.—There is established, shall consist of not more than 12 individuals, VISIONS RELATING TO PROPERTY in the Office of the Secretary, the Office of and the membership of the committee shall AT RISK OF FORECLOSURE AND THE AVAILABILITY OF CREDIT FOR REFI- Housing Counseling. equally represent all aspects of the mortgage NANCING HOME MORTGAGES AT ‘‘(2) DIRECTOR.—There is established the and real estate industry, including con- RISK OF FORECLOSURE. position of Director of Housing Counseling. sumers. (a) STUDY REQUIRED.—The Securities and The Director shall be the head of the Office ‘‘(C) TERMS.—Except as provided in sub- Exchange Commission, in consultation with of Housing Counseling and shall be appointed paragraph (D), each member of the advisory

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committee shall be appointed for a term of 3 ‘‘(v) this section and section 101(e) of the ‘‘(3) MORTGAGE SOFTWARE SYSTEMS.— years. Members may be reappointed at the Housing and Urban Development Act of 1968 ‘‘(A) CERTIFICATION.—The Secretary shall discretion of the Secretary. (12 U.S.C. 1701x, 1701w(e)); provide for the certification of various com- ‘‘(D) TERMS OF INITIAL APPOINTEES.—As ‘‘(vi) section 220(d)(2)(G) of the Low-Income puter software programs for consumers to designated by the Secretary at the time of Housing Preservation and Resident Home- use in evaluating different residential mort- appointment, of the members first appointed ownership Act of 1990 (12 U.S.C. 4110(d)(2)(G)); gage loan proposals. The Secretary shall re- to the advisory committee, 4 shall be ap- ‘‘(vii) sections 422(b)(6), 423(b)(7), 424(c)(4), quire, for such certification, that the mort- pointed for a term of 1 year and 4 shall be ap- 442(b)(6), and 443(b)(6) of the Cranston-Gon- gage software systems take into account— pointed for a term of 2 years. zalez National Affordable Housing Act (42 ‘‘(i) the consumer’s financial situation and ‘‘(E) PROHIBITION OF PAY; TRAVEL EX- U.S.C. 12872(b)(6), 12873(b)(7), 12874(c)(4), the cost of maintaining a home, including in- PENSES.—Members of the advisory com- 12892(b)(6), and 12893(b)(6)); surance, taxes, and utilities; mittee shall serve without pay, but shall re- ‘‘(viii) section 491(b)(1)(F)(iii) of the ‘‘(ii) the amount of time the consumer ex- ceive travel expenses, including per diem in McKinney-Vento Homeless Assistance Act pects to remain in the home or expected lieu of subsistence, in accordance with appli- (42 U.S.C. 11408(b)(1)(F)(iii)); time to maturity of the loan; cable provisions under subchapter I of chap- ‘‘(ix) sections 202(3) and 810(b)(2)(A) of the ‘‘(iii) such other factors as the Secretary ter 57 of title 5, United States Code. Native American Housing and Self-Deter- considers appropriate to assist the consumer ‘‘(F) ADVISORY ROLE ONLY.—The advisory mination Act of 1996 (25 U.S.C. 4132(3), in evaluating whether to pay points, to lock committee shall have no role in reviewing or 4229(b)(2)(A)); in an interest rate, to select an adjustable or awarding housing counseling grants. ‘‘(x) in the National Housing Act— fixed rate loan, to select a conventional or ‘‘(5) SCOPE OF HOMEOWNERSHIP COUN- ‘‘(I) in section 203 (12 U.S.C. 1709), the pe- government-insured or guaranteed loan and SELING.—In carrying out the responsibilities nultimate undesignated paragraph of para- to make other choices during the loan appli- of the Director, the Director shall ensure graph (2) of subsection (b), subsection cation process. that homeownership counseling provided by, (c)(2)(A), and subsection (r)(4); If the Secretary determines that available in connection with, or pursuant to any func- ‘‘(II) subsections (a) and (c)(3) of section 237 existing software is inadequate to assist con- tion, activity, or program of the Department (12 U.S.C. 1715z–2); and sumers during the residential mortgage loan addresses the entire process of homeowner- ‘‘(III) subsections (d)(2)(B) and (m)(1) of application process, the Secretary shall ar- ship, including the decision to purchase a section 255 (12 U.S.C. 1715z–20); range for the development by private sector home, the selection and purchase of a home, ‘‘(xi) section 502(h)(4)(B) of the Housing Act software companies of new mortgage soft- issues arising during or affecting the period of 1949 (42 U.S.C. 1472(h)(4)(B)); and ware systems that meet the Secretary’s of ownership of a home (including refi- ‘‘(xii) section 508 of the Housing and Urban specifications. nancing, default and foreclosure, and other Development Act of 1970 (12 U.S.C. 1701z–7). ‘‘(B) USE AND INITIAL AVAILABILITY.—Such financial decisions), and the sale or other ‘‘(C) RENTAL HOUSING COUNSELING.—For certified computer software programs shall disposition of a home.’’. purposes of this subsection, the term ‘rental be used to supplement, not replace, housing SEC. 133. COUNSELING PROCEDURES. housing counseling’ means counseling re- counseling. The Secretary shall provide that (a) IN GENERAL.—Section 106 of the Hous- lated to rental of residential property, which such programs are initially used only in con- ing and Urban Development Act of 1968 (12 may include counseling regarding future nection with the assistance of housing coun- U.S.C. 1701x) is amended by adding at the end homeownership opportunities and providing selors certified pursuant to subsection (e). the following new subsection: referrals for renters and prospective renters ‘‘(C) AVAILABILITY.—After a period of ini- ‘‘(g) PROCEDURES AND ACTIVITIES.— to entities providing counseling and shall in- tial availability under subparagraph (B) as ‘‘(1) COUNSELING PROCEDURES.— clude counseling related to such topics that the Secretary considers appropriate, the Sec- ‘‘(A) IN GENERAL.—The Secretary shall es- is provided pursuant to— retary shall take reasonable steps to make tablish, coordinate, and monitor the admin- ‘‘(i) section 105(a)(20) of the Housing and mortgage software systems certified pursu- istration by the Department of Housing and Community Development Act of 1974 (42 ant to this paragraph widely available Urban Development of the counseling proce- U.S.C. 5305(a)(20)); through the Internet and at public locations, dures for homeownership counseling and ‘‘(ii) in the United States Housing Act of including public libraries, senior-citizen cen- rental housing counseling provided in con- 1937— ters, public housing sites, offices of public nection with any program of the Depart- ‘‘(I) section 9(e) (42 U.S.C. 1437g(e)); housing agencies that administer rental ment, including all requirements, standards, ‘‘(II) section 18(a)(4)(D) (42 U.S.C. housing assistance vouchers, and housing and performance measures that relate to 1437p(a)(4)(D)); counseling centers. homeownership and rental housing coun- ‘‘(III) section 23(c)(4) (42 U.S.C. 1437u(c)(4)); ‘‘(4) NATIONAL PUBLIC SERVICE MULTIMEDIA seling. ‘‘(IV) section 32(e)(4) (42 U.S.C. 1437z– CAMPAIGNS TO PROMOTE HOUSING COUN- ‘‘(B) HOMEOWNERSHIP COUNSELING.—For 4(e)(4)); SELING.— purposes of this subsection and as used in ‘‘(V) section 33(d)(2)(B) (42 U.S.C. 1437z– ‘‘(A) IN GENERAL.—The Director of Housing the provisions referred to in this subpara- 5(d)(2)(B)); and Counseling shall develop, implement, and graph, the term ‘homeownership counseling’ ‘‘(VI) section 302(b)(6) (42 U.S.C. 1437aaa– conduct national public service multimedia means counseling related to homeownership 1(b)(6)); campaigns designed to make persons facing and residential mortgage loans. Such term ‘‘(iii) section 233(b)(2) of the Cranston-Gon- mortgage foreclosure, persons considering a includes counseling related to homeowner- zalez National Affordable Housing Act (42 subprime mortgage loan to purchase a home, ship and residential mortgage loans that is U.S.C. 12773(b)(2)); elderly persons, persons who face language provided pursuant to— ‘‘(iv) section 106 of the Housing and Urban barriers, low-income persons, and other po- ‘‘(i) section 105(a)(20) of the Housing and Development Act of 1968 (12 U.S.C. 1701x); tentially vulnerable consumers aware that it Community Development Act of 1974 (42 ‘‘(v) section 422(b)(6) of the Cranston-Gon- is advisable, before seeking or maintaining a U.S.C. 5305(a)(20)); zalez National Affordable Housing Act (42 residential mortgage loan, to obtain home- ‘‘(ii) in the United States Housing Act of U.S.C. 12872(b)(6)); ownership counseling from an unbiased and 1937— ‘‘(vi) section 491(b)(1)(F)(iii) of the McKin- reliable sources and that such homeowner- ‘‘(I) section 9(e) (42 U.S.C. 1437g(e)); ney-Vento Homeless Assistance Act (42 ship counseling is available, including ‘‘(II) section 8(y)(1)(D) (42 U.S.C. U.S.C. 11408(b)(1)(F)(iii)); through programs sponsored by the Sec- 1437f(y)(1)(D)); ‘‘(vii) sections 202(3) and 810(b)(2)(A) of the retary of Housing and Urban Development. ‘‘(III) section 18(a)(4)(D) (42 U.S.C. Native American Housing and Self-Deter- ‘‘(B) CONTACT INFORMATION.—Each segment 1437p(a)(4)(D)); mination Act of 1996 (25 U.S.C. 4132(3), of the multimedia campaign under subpara- ‘‘(IV) section 23(c)(4) (42 U.S.C. 1437u(c)(4)); 4229(b)(2)(A)); and graph (A) shall publicize the toll-free tele- ‘‘(V) section 32(e)(4) (42 U.S.C. 1437z–4(e)(4)); ‘‘(viii) the rental assistance program under phone number and web site of the Depart- ‘‘(VI) section 33(d)(2)(B) (42 U.S.C. 1437z– section 8 of the United States Housing Act of ment of Housing and Urban Development 5(d)(2)(B)); 1937 (42 U.S.C. 1437f). through which persons seeking housing ‘‘(VII) sections 302(b)(6) and 303(b)(7) (42 ‘‘(2) STANDARDS FOR MATERIALS.—The Sec- counseling can locate a housing counseling U.S.C. 1437aaa–1(b)(6), 1437aaa–2(b)(7)); and retary, in conjunction with the advisory agency in their State that is certified by the ‘‘(VIII) section 304(c)(4) (42 U.S.C. 1437aaa– committee established under subsection Secretary of Housing and Urban Develop- 3(c)(4)); (g)(4) of the Department of Housing and ment and can provide advice on buying a ‘‘(iii) section 302(a)(4) of the American Urban Development Act, shall establish home, renting, defaults, foreclosures, credit Homeownership and Economic Opportunity standards for materials and forms to be used, issues, and reverse mortgages. Act of 2000 (42 U.S.C. 1437f note); as appropriate, by organizations providing ‘‘(C) AUTHORIZATION OF APPROPRIATIONS.— ‘‘(iv) sections 233(b)(2) and 258(b) of the homeownership counseling services, includ- There are authorized to be appropriated to Cranston-Gonzalez National Affordable ing any recipients of assistance pursuant to the Secretary, not to exceed $3,000,000 for fis- Housing Act (42 U.S.C. 12773(b)(2), 12808(b)); subsection (a)(4). cal years 2008, 2009, and 2010, for the develop,

VerDate Mar 15 2010 15:08 Nov 08, 2010 Jkt 069102 PO 00000 Frm 00035 Fmt 0688 Sfmt 0634 E:\BR08\H08MY8.001 H08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD May 8, 2008 CONGRESSIONAL RECORD—HOUSE, Vol. 154, Pt. 6 8179 implement, and conduct of national public the organization provides such counseling, means any city, county, parish, town, town- service multimedia campaigns under this has been certified by the Secretary under ship, borough, village, or other general pur- paragraph. this subsection as competent to provide such pose political subdivision of a State.’’. ‘‘(5) EDUCATION PROGRAMS.—The Secretary counseling.’’; SEC. 138. UPDATING AND SIMPLIFICATION OF shall provide advice and technical assistance (2) in paragraph (2)— MORTGAGE INFORMATION BOOK- to States, units of general local government, (A) by inserting ‘‘and for certifying organi- LET. and nonprofit organizations regarding the es- zations’’ before the period at the end of the Section 5 of the Real Estate Settlement tablishment and operation of, including as- first sentence; and Procedures Act of 1974 (12 U.S.C. 2604) is sistance with the development of content (B) in the second sentence by striking ‘‘for amended— and materials for, educational programs to certification’’ and inserting ‘‘, for certifi- (1) in the section heading, by striking inform and educate consumers, particularly cation of an organization, that each indi- ‘‘SPECIAL’’ and inserting ‘‘HOME BUYING’’; those most vulnerable with respect to resi- vidual through which the organization pro- (2) by striking subsections (a) and (b) and dential mortgage loans (such as elderly per- vides counseling shall demonstrate, and, for inserting the following new subsections: sons, persons facing language barriers, low- certification of an individual,’’; ‘‘(a) PREPARATION AND DISTRIBUTION.—The income persons, and other potentially vul- (3) in paragraph (3), by inserting ‘‘organiza- Secretary shall prepare, at least once every nerable consumers), regarding home mort- tions and’’ before ‘‘individuals’’; 5 years, a booklet to help consumers apply- gages, mortgage refinancing, home equity (4) by redesignating paragraph (3) as para- ing for federally related mortgage loans to loans, and home repair loans.’’. graph (5); and understand the nature and costs of real es- (b) CONFORMING AMENDMENTS TO GRANT (5) by inserting after paragraph (2) the fol- tate settlement services. The Secretary shall PROGRAM FOR HOMEOWNERSHIP COUNSELING lowing new paragraphs: prepare the booklet in various languages and ORGANIZATIONS.—Section 106(c)(5)(A)(ii) of ‘‘(3) REQUIREMENT UNDER HUD PROGRAMS.— cultural styles, as the Secretary determines the Housing and Urban Development Act of Any homeownership counseling or rental to be appropriate, so that the booklet is un- 1968 (12 U.S.C. 1701x(c)(5)(A)(ii)) is amended— housing counseling (as such terms are de- derstandable and accessible to homebuyers (1) in subclause (III), by striking ‘‘and’’ at fined in subsection (g)(1)) required under, or of different ethnic and cultural backgrounds. the end; provided in connection with, any program The Secretary shall distribute such booklets (2) in subclause (IV) by striking the period administered by the Department of Housing to all lenders that make federally related at the end and inserting ‘‘; and’’; and and Urban Development shall be provided mortgage loans. The Secretary shall also dis- (3) by inserting after subclause (IV) the fol- only by organizations or counselors certified tribute to such lenders lists, organized by lo- lowing new subclause: by the Secretary under this subsection as cation, of homeownership counselors cer- ‘‘(V) notify the housing or mortgage appli- competent to provide such counseling. tified under section 106(e) of the Housing and cant of the availability of mortgage software ‘‘(4) OUTREACH.—The Secretary shall take Urban Development Act of 1968 (12 U.S.C. systems provided pursuant to subsection such actions as the Secretary considers ap- 1701x(e)) for use in complying with the re- (g)(3).’’. propriate to ensure that individuals and or- quirement under subsection (c) of this sec- SEC. 134. GRANTS FOR HOUSING COUNSELING ganizations providing homeownership or tion. ASSISTANCE. rental housing counseling are aware of the ‘‘(b) CONTENTS.—Each booklet shall be in Section 106(a) of the Housing and Urban certification requirements and standards of such form and detail as the Secretary shall Development Act of 1968 (12 U.S.C. this subsection and of the training and cer- prescribe and, in addition to such other in- 1701x(a)(3)) is amended by adding at the end tification programs under subsection (f).’’. formation as the Secretary may provide, the following new paragraph: SEC. 136. STUDY OF DEFAULTS AND FORE- shall include in plain and understandable ‘‘(4) HOMEOWNERSHIP AND RENTAL COUN- CLOSURES. language the following information: SELING ASSISTANCE.— The Secretary of Housing and Urban Devel- ‘‘(1) A description and explanation of the ‘‘(A) IN GENERAL.—The Secretary shall opment shall conduct an extensive study of nature and purpose of the costs incident to a make financial assistance available under the root causes of default and foreclosure of real estate settlement or a federally related this paragraph to States, units of general home loans, using as much empirical data as mortgage loan. The description and expla- local governments, and nonprofit organiza- are available. The study shall also examine nation shall provide general information tions providing homeownership or rental the role of escrow accounts in helping prime about the mortgage process as well as spe- counseling (as such terms are defined in sub- and nonprime borrowers to avoid defaults cific information concerning, at a min- section (g)(1)). and foreclosures. Not later than 12 months imum— ‘‘(B) QUALIFIED ENTITIES.—The Secretary after the date of the enactment of this Act, ‘‘(A) balloon payments; shall establish standards and guidelines for the Secretary shall submit to the Congress a ‘‘(B) prepayment penalties; and eligibility of organizations (including gov- preliminary report regarding the study. Not ‘‘(C) the trade-off between closing costs ernmental and nonprofit organizations) to later than 24 months after such date of en- and the interest rate over the life of the receive assistance under this paragraph. actment, the Secretary shall submit a final loan. ‘‘(C) DISTRIBUTION.—Assistance made avail- report regarding the results of the study, ‘‘(2) An explanation and sample of the uni- able under this paragraph shall be distrib- which shall include any recommended legis- form settlement statement required by sec- uted in a manner that encourages efficient lation relating to the study, and rec- tion 4. and successful counseling programs. ommendations for best practices and for a ‘‘(3) A list and explanation of lending prac- ‘‘(D) AUTHORIZATION OF APPROPRIATIONS.— process to identify populations that need tices, including those prohibited by the There are authorized to be appropriated counseling the most. Truth in Lending Act or other applicable $45,000,000 for each of fiscal years 2008 SEC. 137. DEFINITIONS FOR COUNSELING-RE- Federal law, and of other unfair practices through 2011 for— LATED PROGRAMS. and unreasonable or unnecessary charges to ‘‘(i) the operations of the Office of Housing Section 106 of the Housing and Urban De- be avoided by the prospective buyer with re- Counseling of the Department of Housing velopment Act of 1968 (12 U.S.C. 1701x), as spect to a real estate settlement. and Urban Development; amended by the preceding provisions of this ‘‘(4) A list and explanation of questions a ‘‘(ii) the responsibilities of the Secretary subtitle, is further amended by adding at the consumer obtaining a federally related mort- under paragraphs (2) through (5) of sub- end the following new subsection: gage loan should ask regarding the loan, in- section (g); and ‘‘(h) DEFINITIONS.—For purposes of this sec- cluding whether the consumer will have the ‘‘(iii) assistance pursuant to this paragraph tion: ability to repay the loan, whether the con- for entities providing homeownership and ‘‘(1) NONPROFIT ORGANIZATION.—The term sumer sufficiently shopped for the loan, rental counseling.’’. ‘nonprofit organization’ has the meaning whether the loan terms include prepayment SEC. 135. REQUIREMENTS TO USE HUD-CER- given such term in section 104(5) of the Cran- penalties or balloon payments, and whether TIFIED COUNSELORS UNDER HUD ston-Gonzalez National Affordable Housing the loan will benefit the borrower. PROGRAMS. Act (42 U.S.C. 12704(5)), except that subpara- ‘‘(5) An explanation of the right of rescis- Section 106(e) of the Housing and Urban graph (D) of such section shall not apply for sion as to certain transactions provided by Development Act of 1968 (12 U.S.C. 1701x(e)) purposes of this section. sections 125 and 129 of the Truth in Lending is amended— ‘‘(2) STATE.—The term ‘State’ means each Act. (1) by striking paragraph (1) and inserting of the several States, the Commonwealth of ‘‘(6) A brief explanation of the nature of a the following new paragraph: Puerto Rico, the District of Columbia, the variable rate mortgage and a reference to ‘‘(1) REQUIREMENT FOR ASSISTANCE.—An or- Commonwealth of the Northern Mariana Is- the booklet entitled ‘Consumer Handbook on ganization may not receive assistance for lands, Guam, the Virgin Islands, American Adjustable Rate Mortgages’, published by counseling activities under subsection Samoa, the Trust Territories of the Pacific, the Board of Governors of the Federal Re- (a)(1)(iii), (a)(2), (a)(4), (c), or (d) of this sec- or any other possession of the United States. serve System pursuant to section 226.19(b)(1) tion, or under section 101(e), unless the orga- ‘‘(3) UNIT OF GENERAL LOCAL GOVERNMENT.— of title 12, Code of Federal Regulations, or to nization, or the individuals through which The term ‘unit of general local government’ any suitable substitute of such booklet that

VerDate Mar 15 2010 15:08 Nov 08, 2010 Jkt 069102 PO 00000 Frm 00036 Fmt 0688 Sfmt 0634 E:\BR08\H08MY8.001 H08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD 8180 CONGRESSIONAL RECORD—HOUSE, Vol. 154, Pt. 6 May 8, 2008 such Board of Governors may subsequently SEC. 202. FINDINGS AND PURPOSES. on October 21, 1998; or (II) 65 percent of the adopt pursuant to such section. (a) FINDINGS.—The Congress finds that— dollar amount limitation determined under ‘‘(7) A brief explanation of the nature of a (1) one of the primary missions of the Fed- such section 305(a)(2) for a residence of the home equity line of credit and a reference to eral Housing Administration (FHA) single applicable size; and except that, if the Sec- the pamphlet required to be provided under family mortgage insurance program is to retary determines that market conditions section 127A of the Truth in Lending Act. reach borrowers who are underserved, or not warrant such an increase, the Secretary ‘‘(8) Information about homeownership served, by the existing conventional mort- may, for such period as the Secretary con- counseling services made available pursuant gage marketplace; siders appropriate, increase the maximum to section 106(a)(4) of the Housing and Urban (2) the FHA program has a long history of dollar amount limitation determined pursu- Development Act of 1968 (12 U.S.C. innovation, which includes pioneering the 30- ant to the preceding provisions of this sub- 1701x(a)(4)), a recommendation that the con- year self-amortizing mortgage and a safe-to- paragraph with respect to any particular size sumer use such services, and notification seniors reverse mortgage product, both of or sizes of residences, or with respect to resi- that a list of certified providers of homeown- which were once thought too risky to private dences located in any particular area or ership counseling in the area, and their con- lenders; areas, to an amount that does not exceed the tact information, is available. (3) the FHA single family mortgage insur- maximum dollar amount then otherwise in ‘‘(9) An explanation of the nature and pur- ance program traditionally has been a major effect pursuant to the preceding provisions pose of escrow accounts when used in con- provider of mortgage insurance for home of this subparagraph for such size residence, nection with loans secured by residential purchases; or for such area (if applicable), by not more real estate and the requirements under sec- (4) the FHA mortgage insurance premium than $100,000; and’’. tion 10 of this Act regarding such accounts. structure, as well as FHA’s product offer- (b) TREATMENT OF TEMPORARY LOAN LIMIT ‘‘(10) An explanation of the choices avail- ings, should be revised to reflect FHA’s en- INCREASE.—Subsection (a) and the amend- able to buyers of residential real estate in se- hanced ability to determine risk at the loan ment made by such subsection may not be lecting persons to provide necessary services level and to allow FHA to better respond to construed to in any way affect the effective- incidental to a real estate settlement. changes in the mortgage market; ness of section 202 of the Economic Stimulus ‘‘(11) An explanation of a consumer’s re- (5) during past recessions, including the Act of 2008 (Public Law 110-185; 122 Stat. 620). oil-patch downturns in the mid-1980s, FHA sponsibilities, liabilities, and obligations in SEC. 204. EXTENSION OF MORTGAGE TERM. a mortgage transaction. remained a viable credit enhancer and was Paragraph (3) of section 203(b) of the Na- ‘‘(12) An explanation of the nature and pur- therefore instrumental in preventing a more tional Housing Act (12 U.S.C. 1709(b)(3)) is pose of real estate appraisals, including the catastrophic collapse in housing markets amended— difference between an appraisal and a home and a greater loss of homeowner equity; and (1) by striking ‘‘thirty-five years’’ and in- inspection. (6) as housing price appreciation slows and serting ‘‘forty years’’; and ‘‘(13) Notice that the Office of Housing of interest rates rise, many homeowners and (2) by striking ‘‘(or thirty years if such the Department of Housing and Urban Devel- prospective homebuyers will need the less- mortgage is not approved for insurance prior opment has made publicly available a bro- expensive, safer financing alternative that to construction)’’. chure regarding loan fraud and a World Wide FHA mortgage insurance provides. Web address and toll-free telephone number (b) PURPOSES.—The purposes of this sub- SEC. 205. DOWNPAYMENT SIMPLIFICATION. for obtaining the brochure. title are— Section 203(b) of the National Housing Act The booklet prepared pursuant to this sec- (1) to provide flexibility to FHA to allow (12 U.S.C. 1709(b)) is amended— tion shall take into consideration differences for the insurance of housing loans for low- (1) in paragraph (2)— in real estate settlement procedures that and moderate-income homebuyers during all (A) by striking subparagraph (B) and in- may exist among the several States and ter- economic cycles in the mortgage market; serting the following new subparagraph: ritories of the United States and among sep- (2) to modernize the FHA single family ‘‘(B) not to exceed an amount equal to the arate political subdivisions within the same mortgage insurance program by making it sum of— State and territory.’’; more reflective of enhancements to loan- ‘‘(i) the amount of the mortgage premium (3) in subsection (c), by inserting at the level risk assessments and changes to the paid at the time the mortgage is insured; and end the following new sentence: ‘‘Each lend- mortgage market; and ‘‘(ii) 97.75 percent of the appraised value of er shall also include with the booklet a rea- (3) to adjust the loan limits for the single the property.’’; sonably complete or updated list of home- family mortgage insurance program to re- (B) in the matter after and below subpara- ownership counselors who are certified pur- flect rising house prices and the increased graph (B), by striking the second sentence suant to section 106(e) of the Housing and costs associated with new construction. (relating to a definition of ‘‘average closing Urban Development Act of 1968 (12 U.S.C. SEC. 203. MAXIMUM PRINCIPAL LOAN OBLIGA- cost’’) and all that follows through ‘‘title 38, 1701x(e)) and located in the area of the lend- TION. United States Code.’’; and er.’’; and (a) IN GENERAL.—Section 203(b)(2) of the (C) by striking the last undesignated para- (4) in subsection (d), by inserting after the National Housing Act (12 U.S.C. 1709(b)(2)(A)) graph (relating to counseling with respect to period at the end of the first sentence the is amended by striking subparagraph (A) and the responsibilities and financial manage- following: ‘‘The lender shall provide the inserting the following new subparagraph: ment involved in homeownership); and HUD-issued booklet in the version that is ‘‘(A) not to exceed the lesser of— (2) in paragraph (9)— most appropriate for the person receiving ‘‘(i) in the case of a 1-family residence, 125 (A) by striking the paragraph designation it.’’. percent of the median 1-family house price in and all that follows through ‘‘Provided fur- the area, as determined by the Secretary; Subtitle C—Combating Mortgage Fraud ther, That for’’ and inserting the following: and in the case of a 2-, 3-, or 4-family resi- ‘‘(9) Be executed by a mortgagor who shall SEC. 151. AUTHORIZATION OF APPROPRIATIONS dence, the percentage of such median price have paid on account of the property, in cash TO COMBAT MORTGAGE FRAUD. that bears the same ratio to such median or its equivalent, at least 3 percent of the For fiscal years 2008, 2009, 2010, 2011, and price as the dollar amount limitation deter- 2012, there are authorized to be appropriated Secretary’s estimate of the cost of acquisi- mined under section 305(a)(2) of the Federal tion (excluding the mortgage insurance pre- to the Attorney General a total of— Home Loan Mortgage Corporation Act (12 (1) $31,250,000 to support the employment of mium paid at the time the mortgage is in- U.S.C. 1454(a)(2)) for a 2-, 3-, or 4-family resi- sured). For’’; and 30 additional agents of the Federal Bureau of dence, respectively, bears to the dollar Investigation and 2 additional dedicated (B) by inserting after the period at the end amount limitation determined under such the following: ‘‘For purposes of this para- prosecutors at the Department of Justice to section for a 1-family residence; or coordinate prosecution of mortgage fraud ef- graph, the Secretary shall consider as cash ‘‘(ii) 175 percent of the dollar amount limi- or its equivalent any amounts gifted by a forts with the offices of the United States tation determined under such section Attorneys; and family member (as such term is defined in 305(a)(2)(A) for a residence of the applicable section 201), the mortgagor’s employer or (2) $750,000 to support the operations of size (without regard to any authority to in- interagency task forces of the Federal Bu- labor union, or a qualified homeownership crease such limitations with respect to prop- assistance entity, but only if there is no obli- reau of Investigation in the areas with the 15 erties located in Alaska, Guam, Hawaii, or highest concentrations of mortgage fraud. gation on the part of the mortgagor to repay the Virgin Islands and without regard to the the gift: For purposes of the preceding sen- TITLE II—FHA REFORM AND MANUFAC- high-cost area limitation under such section tence, the term ‘qualified homeownership as- TURED HOUSING LOAN INSURANCE 305(a)(2)(B)); sistance entity’ means any governmental MODERNIZATION except that the dollar amount limitation in agency or charity that has a program to pro- Subtitle A—FHA Reform effect under this subparagraph for any size vide homeownership assistance to low- and SEC. 201. SHORT TITLE. residence for any area may not be less than moderate-income families or first-time home This subtitle may be cited as the ‘‘Expand- the greater of: (I) the dollar amount limita- buyers, or any private nonprofit organiza- ing American Homeownership Act of 2008’’. tion in effect under this section for the area tion that has such a program and evidences

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sufficient fiscal soundness to protect the fis- ‘‘(B) ESTABLISHMENT AND ALTERATION OF tive under this subparagraph applies, if, dur- cal integrity of the Mutual Mortgage Insur- PREMIUM STRUCTURE.—A premium structure ing the period referred to in clause (i) or (ii) ance Fund by maintaining a minimum net shall be established or changed under sub- of subparagraph (A), as applicable, all mort- worth of $4,000,000 of acceptable assets.’’. paragraph (A) only by providing notice to gage insurance premiums for such mortgage SEC. 206. MORTGAGE INSURANCE PREMIUMS FOR mortgagees and to the Congress, at least 30 have been paid on a timely basis, upon the QUALIFIED HOMEOWNERSHIP AS- days before the premium structure is estab- expiration of such period the Secretary SISTANCE ENTITIES AND HIGHER- lished or changed. shall— RISK BORROWERS. ‘‘(C) ANNUAL REPORT REGARDING PRE- ‘‘(i) reduce the amount of the annual pre- Paragraph (2) of section 203(c) of the Na- MIUMS.—The Secretary shall submit a report mium payments otherwise due thereafter tional Housing Act (12 U.S.C. 1709(c)(2)) is to the Congress annually setting forth the under such mortgage to an amount that does amended— rate structures and rates established and al- not exceed the amount of the annual pre- (1) in subparagraph (A), in the matter pre- tered pursuant to this paragraph during the mium payable at the time of insurance of the ceding subparagraph (A), by striking the preceding 12-month period and describing mortgage on a mortgage of the same product first comma after ‘‘section 234(c)’’; how such rates were determined. type having the same terms, but for which (2) in subparagraph (A), by inserting after ‘‘(5) CONSIDERATIONS FOR PREMIUM STRUC- the mortgagor has a credit score equivalent the period at the end of the second sentence TURE.—When establishing premiums for to a FICO score of 560 or more; and the following: ‘‘In the case of a mortgage for mortgages referred to in paragraph (2)(C), es- ‘‘(ii) refund to the mortgagor, upon pay- which any amounts gifted by a qualified tablishing premiums pursuant to paragraph ment in full of the obligation of the mort- homeownership assistance entity (as such (3), establishing a premium structure under gage, any amount by which the single pre- term is defined in paragraph (9) of subsection paragraph (4), and when changing such a pre- mium payment for such mortgage collected (b)) that is a private nonprofit organization mium structure, the Secretary shall consider at the time of insurance exceeded the the following: are treated as cash or its equivalent for pur- amount of the single premium payment ‘‘(A) The effect of the proposed premiums poses of meeting the 3 percent requirement chargeable under paragraph (2)(A) at the or structure on the Secretary’s ability to under such paragraph, the premium payment time of insurance for a mortgage of the same meet the operational goals of the Mutual under this subparagraph shall not exceed 3.0 product type having the same terms, but for Mortgage Insurance Fund as provided in sec- percent of the amount of the original insured which the mortgagor has a credit score tion 202(a). principal obligation of the mortgage.’’; and equivalent to a FICO score of 560 or more.’’. (3) by adding at the end the following new ‘‘(B) Underwriting variables. subparagraph: ‘‘(C) The extent to which new pricing under SEC. 209. PROTECTIONS FOR HIGHER-RISK BOR- the proposed premiums or structure has po- ROWERS. ‘‘(C) HIGHER-RISK BORROWERS.—The Sec- tential for acceptance in the private market. retary shall establish underwriting stand- Section 203(b) of the National Housing Act ‘‘(D) The administrative capability of the ards that provide for insurance under this (12 U.S.C. 1709(b)) is amended by adding at Secretary to administer the proposed pre- section of mortgages described in the matter miums or structure. the end the following new paragraph: in this paragraph preceding subparagraph (A) ‘‘(E) The effect of the proposed premiums ‘‘(10) PROTECTIONS FOR HIGHER-RISK BOR- for which the mortgagor has a credit score or structure on the Secretary’s ability to ROWERS.—Except as otherwise specifically equivalent to a FICO score of less than 560, maintain the availability of mortgage credit provided in this paragraph, in the case of any and may insure, and make commitments to and provide stability to mortgage markets. mortgage referred to in paragraph (2)(C) of insure, such mortgages. Such underwriting ‘‘(6) AUTHORITY TO BASE PREMIUM PRICES ON subsection (c), the following requirements standards shall include establishing and col- PRODUCT RISK.— shall apply: lecting premium payments that comply with ‘‘(A) AUTHORITY.—In establishing premium ‘‘(A) DISCLOSURES.— the requirements of this paragraph, except rates under paragraphs (2), (3), and (4), the ‘‘(i) REQUIRED DISCLOSURES.—In addition to that notwithstanding subparagraph (A), the Secretary may provide for variations in such any disclosures that are otherwise required single premium payment collected at the rates according to the credit risk associated by law or by the Secretary for single family time of insurance may be established in an with the type of mortgage product that is mortgages, the mortgagee shall disclose to amount that does not exceed 3.0 percent of being insured under this title, which may in- the mortgagor the following information: the amount of the original insured principal clude providing that premium rates differ be- ‘‘(I) AT APPLICATION.—At the time of appli- obligation of the mortgage.’’. tween fixed-rate mortgages and adjustable- cation for the loan involved in the mortgage, SEC. 207. RISK-BASED MORTGAGE INSURANCE rate mortgages insured pursuant to section a list of counseling agencies, approved by the PREMIUMS. 251, between mortgages insured pursuant to Secretary, in the area of the applicant. Section 203(c) of the National Housing Act section 203(b) and mortgages for condomin- ‘‘(II) AT EXECUTION.—At the time of enter- (12 U.S.C. 1709(c)), as amended by the pre- iums insured pursuant to section 234, and be- ing into the mortgage— ceding provisions of this subtitle, is further tween such other products as the Secretary ‘‘(aa) the terms of the mandatory 5-year amended by adding at the end the following considers appropriate. payment incentive required under subsection new paragraphs: ‘‘(B) LIMITATION.—Subparagraph (A) may (c)(7)(A)(ii); and ‘‘(4) FLEXIBLE RISK-BASED PREMIUMS.—In not be construed to authorize the Secretary ‘‘(bb) a statement that the mortgagor has the case of a mortgage referred to in para- to establish, for any mortgage product, any a right under contract to loss mitigation. graph (2)(C) or a mortgage described in the mortgage insurance premium rate that does ‘‘(III) OTHER INFORMATION.—Any other ad- third sentence of subparagraph (A) of para- not comply with the requirements and limi- ditional information that the Secretary de- graph (2) (relating to mortgages for which tations under paragraphs (2) through (5).’’. termines is appropriate to ensure that the amounts are gifted by a nonprofit qualified SEC. 208. PAYMENT INCENTIVES FOR HIGHER- mortgagor has received timely and accurate homeownership assistance entity), for which RISK BORROWERS. information about the program under para- the loan application is received by the mort- Section 203(c) of the National Housing Act graph (2)(C) of subsection (c). gagee on or after the date of the enactment (12 U.S.C. 1709(c)), as amended by the pre- ‘‘(ii) PENALTIES FOR FAILURE TO PROVIDE of the Expanding American Homeownership ceding provisions of this subtitle, is further REQUIRED DISCLOSURES.—The Secretary may Act of 2008: amended by adding at the end the following establish and impose appropriate penalties ‘‘(A) IN GENERAL.—The Secretary may es- new paragraph: for failure of a mortgagee to provide any dis- tablish a mortgage insurance premium struc- ‘‘(7) PAYMENT INCENTIVES.— closure required under clause (i). ture involving a single premium payment ‘‘(A) AUTHORITY.—With respect to mort- ‘‘(iii) NO PRIVATE RIGHT OF ACTION.—This collected prior to the insurance of the mort- gages referred to in paragraph (2)(C): subparagraph shall not create any private gage or annual payments (which may be col- ‘‘(i) DISCRETIONARY 3-YEAR PAYMENT INCEN- right of action on behalf of the mortgagor. lected on a periodic basis), or both, subject TIVE.—The Secretary may provide, in the ‘‘(B) COUNSELING.— to the requirements of subparagraph (B) and discretion of the Secretary, that the pay- ‘‘(i) REQUIREMENT.—The Secretary shall re- paragraph (5). Under such structure, the rate ment incentive under subparagraph (B) shall quire that the mortgagor shall have received of premiums for such a mortgage may vary apply upon the expiration of the 3-year pe- counseling that complies with the require- according to the credit risk associated with riod beginning upon the time of insurance of ments of this subparagraph. the mortgage and the rate of any annual pre- such a mortgage. ‘‘(ii) TERMS OF COUNSELING.—Counseling mium for such a mortgage may vary during ‘‘(ii) MANDATORY 5-YEAR PAYMENT INCEN- under this subparagraph shall be provided— the mortgage term as long as the basis for TIVE.—The Secretary shall provide that the ‘‘(I) prior to closing for the loan involved determining the variable rate is established payment incentive under subparagraph (B) in the mortgage; before the execution of the mortgage. The applies upon the expiration of the 5-year pe- ‘‘(II) by a third party (other than the mort- Secretary may change a premium structure riod beginning upon the time of insurance of gagee) who is approved by the Secretary, established under this subclause but only to such a mortgage. with respect to the responsibilities and fi- the extent that such change is not applied to ‘‘(B) PAYMENT INCENTIVE.—In the case of nancial management involved in homeown- any mortgage already executed. any mortgage to which the payment incen- ership;

VerDate Mar 15 2010 15:08 Nov 08, 2010 Jkt 069102 PO 00000 Frm 00038 Fmt 0688 Sfmt 0634 E:\BR08\H08MY8.001 H08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD 8182 CONGRESSIONAL RECORD—HOUSE, Vol. 154, Pt. 6 May 8, 2008

‘‘(III) on an individual basis to the mort- ‘‘(l) REFINANCING MORTGAGES.— SEC. 213. REHABILITATION LOANS. gagor by a representative of the approved ‘‘(1) ESTABLISHMENT OF UNDERWRITING Subsection (k) of section 203 of the Na- third-party counseling entity; and STANDARDS.—The Secretary shall establish tional Housing Act (12 U.S.C. 1709(k)) is ‘‘(IV) in person, to the maximum extent underwriting standards that provide for in- amended— possible. surance under this title of mortgage loans, (1) in paragraph (1), by striking ‘‘on’’ and ‘‘(iii) 2- AND 3-FAMILY RESIDENCES.—In the and take actions to facilitate the avail- all that follows through ‘‘1978’’; and case of a mortgage involving a 2- or 3-family ability of mortgage loans insured under this (2) in paragraph (5)— residence, counseling under this subpara- title, for qualified borrowers that are made (A) by striking ‘‘General Insurance Fund’’ graph shall include (in addition to the infor- for the purpose of paying or prepaying out- the first place it appears and inserting ‘‘Mu- mation required under clause (iii)) informa- standing obligations under existing mort- tual Mortgage Insurance Fund’’; and tion regarding real estate property manage- gages for borrowers that— (B) in the second sentence, by striking the ment. ‘‘(A) have existing mortgages with adverse comma and all that follows through ‘‘Gen- ‘‘(C) NOTICE OF FORECLOSURE PREVENTION terms or rates, or eral Insurance Fund’’. COUNSELING AVAILABILITY.— ‘‘(B) do not have access to mortgages at SEC. 214. DISCRETIONARY ACTION. ‘‘(i) WRITTEN AGREEMENT.—To be eligible reasonable rates and terms for such The National Housing Act is amended— for insurance under this subsection, the refinancings due to adverse market condi- (1) in subsection (e) of section 202 (12 U.S.C. mortgagee shall provide the mortgagor, at tions. 1708(e))— the time of the execution of the mortgage, a ‘‘(2) INSURANCE OF MORTGAGES TO BOR- (A) in paragraph (3)(B), by striking ‘‘sec- written agreement which shall be signed by ROWERS IN DEFAULT OR AT RISK OF DEFAULT.— tion 202(e) of the National Housing Act’’ and the mortgagor and under which the mort- In facilitating insurance for such mortgages, inserting ‘‘this subsection’’; and gagee shall provide notice described in the Secretary may insure mortgages to bor- (B) by redesignating such subsection as clause (ii) to a housing counseling entity rowers who are, currently in default or at subsection (f); that has agreed to provide the notice and imminent risk of being in default, but only if (2) by striking paragraph (4) of section counseling required under clause (iii) and is such loans meet reasonable underwriting 203(s) (12 U.S.C. 1709(s)(4)) and inserting the approved by the Secretary. standards established by the Secretary.’’. following new paragraph: ‘‘(ii) NOTICE TO COUNSELING AGENCY.—The SEC. 211. ANNUAL REPORTS ON NEW PROGRAMS ‘‘(4) the Secretary of Agriculture;’’; and notice described in this clause, with respect AND LOSS MITIGATION. (3) by transferring subsection (s) of section to a mortgage, is notice, provided at the ear- Section 540(b)(2) of the National Housing 203 (as amended by paragraph (2) of this sec- liest time practicable after the mortgagor Act (12 U.S.C. 1735f–18(b)(2)) is amended, by tion) to section 202, inserting such sub- becomes 60 days delinquent with respect to adding at the end the following new subpara- section after subsection (d) of section 202, any payment due under the mortgage, that graphs: and redesignating such subsection as sub- the mortgagor is so delinquent and of how to ‘‘(C) The rates of default and foreclosure section (e). contact the mortgagor. Such notice may for the applicable collection period for mort- only be provided once with respect to each SEC. 215. INSURANCE OF CONDOMINIUMS AND gages insured pursuant to the program for MANUFACTURED HOUSING. delinquency period for a mortgage. mortgage insurance under paragraph (2)(C) of (a) IN GENERAL.—Section 234 of the Na- ‘‘(iii) NOTICE TO MORTGAGOR.—Upon notice section 203(c). from a mortgagee that a mortgagor is 60 tional Housing Act (12 U.S.C. 1715y) is ‘‘(D) Actions taken by the Secretary dur- days delinquent with respect to payments amended— ing the applicable collection period with re- due under the mortgage, the housing coun- (1) in subsection (c)— seling entity shall at the earliest time prac- spect to loss mitigation on mortgages in- (A) in the first sentence— ticable notify the mortgagor of such delin- sured pursuant to section 203.’’. (i) by striking ‘‘and’’ before ‘‘(2)’’; and quency, that the entity makes available SEC. 212. INSURANCE FOR SINGLE FAMILY (ii) by inserting before the period at the foreclosure prevention counseling that may HOMES WITH LICENSED CHILD CARE end the following: ‘‘, and (3) the project has FACILITIES. assist the mortgagor in resolving the delin- a blanket mortgage insured by the Secretary quency, and of how to contact the entity to (a) DEFINITION OF CHILD CARE FACILITY.— under subsection (d)’’; and arrange for such counseling. Section 201 of the National Housing Act (12 (B) in clause (B) of the third sentence, by U.S.C. 1707) is amended by adding at the end ‘‘(iv) ABILITY TO CURE.—Failure to provide striking ‘‘thirty-five years’’ and inserting the written agreement required under clause the following new subsection: ‘‘forty years’’; and (i) may be corrected by sending such agree- ‘‘(g) The term ‘child care facility’ means a (2) in subsection (g), by striking ‘‘, except ment to the mortgagor not later than the facility that— that’’ and all that follows and inserting a pe- earliest time practicable after the mortgagor ‘‘(A) has as its purpose the care of children riod. first becomes 60 days delinquent with respect who are less than 12 years of age; and (b) DEFINITION OF MORTGAGE.—Section to payments due under the mortgage. Insur- ‘‘(B) is licensed or regulated by the State 201(a) of the National Housing Act (12 U.S.C. ance provided under this subsection may not in which it is located (or, if there is no State 1707(a)) is amended— be terminated and penalties for such failure law providing for such licensing and regula- (1) before ‘‘ a first mortgage’’ insert ‘‘(A)’’; may not be prospectively or retroactively tion by the State, by the municipality or (2) by striking ‘‘or on a leasehold (1)’’ and imposed if such failure is corrected in ac- other political subdivision in which the facil- inserting ‘‘(B) a first mortgage on a lease- cordance with this clause. ity is located). hold on real estate (i)’’; ‘‘(v) PENALTIES FOR FAILURE TO PROVIDE Such term does not include facilities for (3) by striking ‘‘or (2)’’ and inserting ‘‘, or AGREEMENT.—The Secretary may establish school-age children primarily for use during (ii)’’; and and impose appropriate penalties for failure normal school hours.’’. (4) by inserting before the semicolon the of a mortgagee to provide the written agree- (b) INCREASE IN MAXIMUM MORTGAGE following: ‘‘, or (C) a first mortgage given to ment required under clause (i). AMOUNT LIMITATION.—Paragraph (2) of sec- secure the unpaid purchase price of a fee in- ‘‘(vi) LIMITATION ON LIABILITY OF MORT- tion 203(b) of the National Housing Act (12 terest in, or long-term leasehold interest in, GAGEE.—A mortgagee shall not incur any li- U.S.C. 1709(b)(2)), as amended by the pre- real estate consisting of a one-family unit in ability or penalties for any failure of a hous- ceding provisions of this subtitle, is further a multifamily project, including a project in ing counseling entity to provide notice under amended by adding at end the following new which the dwelling units are attached, or are clause (iii). undesignated paragraph: manufactured housing units, semi-detached, ‘‘(vii) NO PRIVATE RIGHT OF ACTION.—This ‘‘Notwithstanding any other provision of or detached, and an undivided interest in the subparagraph shall not create any private this paragraph, the amount that may be in- common areas and facilities which serve the right of action on behalf of the mortgagor. sured under this section may be increased by project’’. ‘‘(viii) DELINQUENCY PERIOD.—For purposes up to 25 percent if such increase is necessary (c) DEFINITION OF REAL ESTATE.—Section of this subparagraph, the term ‘delinquency to account for the increased cost of the resi- 201 of the National Housing Act (12 U.S.C. period’ means, with respect to a mortgage, a dence due to an increased need of space in 1707), as amended by the preceding provisions period that begins upon the mortgagor be- the residence for locating and operating a of this subtitle, is further amended by adding coming delinquent with respect to payments child care facility (as such term is defined in at the end the following new subsection: due under the mortgage and ends upon the section 201) within the residence, but only if ‘‘(h) The term ‘real estate’ means land and first subsequent occurrence of such pay- a valid license or certificate of compliance all natural resources and structures perma- ments under the mortgage becoming current with regulations described in section nently affixed to the land, including residen- or the property subject to the mortgage 201(g)(2) has been issued for such facility as tial buildings and stationary manufactured being foreclosed or otherwise disposed of.’’. of the date of the execution of the mortgage, housing. The Secretary may not require, for SEC. 210. REFINANCING MORTGAGES. and only if such increase in the amount in- treatment of any land or other property as Section 203 of the National Housing Act (12 sured is proportional to the amount of space real estate for purposes of this title, that U.S.C. 1709) is amended by inserting after of such residence that will be used for such such land or property be treated as real es- subsection (k) the following new subsection: facility.’’. tate for purposes of State taxation.’’.

VerDate Mar 15 2010 15:08 Nov 08, 2010 Jkt 069102 PO 00000 Frm 00039 Fmt 0688 Sfmt 0634 E:\BR08\H08MY8.001 H08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD May 8, 2008 CONGRESSIONAL RECORD—HOUSE, Vol. 154, Pt. 6 8183 SEC. 216. MUTUAL MORTGAGE INSURANCE FUND. ‘‘(A) to charge borrowers under loans that Commonwealth of the Northern Mariana Is- (a) IN GENERAL.—Subsection (a) of section are obligations of the Fund an appropriate lands’’. 202 of the National Housing Act (12 U.S.C. premium for the risk that such loans pose to SEC. 219. HOME EQUITY CONVERSION MORT- 1708(a)) is amended to read as follows: the Fund; GAGES. ‘‘(a) MUTUAL MORTGAGE INSURANCE FUND.— ‘‘(B) to minimize the default risk to the (a) IN GENERAL.—Section 255 of the Na- ‘‘(1) ESTABLISHMENT.—Subject to the provi- Fund and to homeowners; tional Housing Act (12 U.S.C. 1715z–20) is sions of the Federal Credit Reform Act of ‘‘(C) to curtail the impact of adverse selec- amended— 1990, there is hereby created a Mutual Mort- tion on the Fund; and (1) in subsection (b)(2), insert ‘‘ ‘real es- gage Insurance Fund (in this title referred to ‘‘(D) to meet the housing needs of the bor- tate,’ ’’ after ‘‘ ‘mortgagor’,’’; as the ‘Fund’), which shall be used by the rowers that the single family mortgage in- (2) in subsection (b)(4), by striking sub- Secretary to carry out the provisions of this surance program under this title is designed paragraph (B) and inserting the following title with respect to mortgages insured to serve.’’. new subparagraph: under section 203. The Secretary may enter (b) OBLIGATIONS OF FUND.—The National ‘‘(B) under a lease that has a term that into commitments to guarantee, and may Housing Act is amended as follows: ends no earlier than the minimum number of guarantee, such insured mortgages. (1) HOMEOWNERSHIP VOUCHER PROGRAM years, as specified by the Secretary, beyond ‘‘(2) LIMIT ON LOAN GUARANTEES.—The au- MORTGAGES.—In section 203(v) (12 U.S.C. the actuarial life expectancy of the mort- thority of the Secretary to enter into com- 1709(v))— gagor or comortgagor, whichever is the later mitments to guarantee such insured mort- (A) by striking ‘‘Notwithstanding section date.’’. gages shall be effective for any fiscal year 202 of this title, the’’ and inserting ‘‘The’’; (3) in the second sentence of subsection (g), only to the extent that the aggregate origi- and by striking ‘‘the maximum dollar amount es- nal principal loan amount under such mort- (B) by striking ‘‘General Insurance Fund’’ tablished under section 203(b)(2)’’ and all gages, any part of which is guaranteed, does the first place such term appears and all that that follows through ‘‘located’’ and inserting not exceed the amount specified in appro- follows and inserting ‘‘Mutual Mortgage In- ‘‘132 percent of the dollar amount limitation priations Acts for such fiscal year. surance Fund.’’. determined under section 305(a)(2)(A) of the ‘‘(3) FIDUCIARY RESPONSIBILITY.—The Sec- (2) HOME EQUITY CONVERSION MORTGAGES.— Federal Home Loan Mortgage Corporation retary has a responsibility to ensure that the Section 255(i)(2)(A) of the National Housing Act for a 1-family residence (without regard Mutual Mortgage Insurance Fund remains fi- Act (12 U.S.C. 1715z–20(i)(2)(A)) is amended by to any authority to increase such limita- nancially sound. striking ‘‘General Insurance Fund’’ and in- tions with respect to properties located in ‘‘(4) ANNUAL INDEPENDENT ACTUARIAL serting ‘‘Mutual Mortgage Insurance Fund’’. Alaska, Guam, Hawaii, or the Virgin Islands STUDY.—The Secretary shall provide for an (c) CONFORMING AMENDMENTS.—The Na- and without regard to the high-cost area independent actuarial study of the Fund to tional Housing Act is amended— limitation under such section 305(a)(2)(B))’’; be conducted annually, which shall analyze (1) in section 205 (12 U.S.C. 1711), by strik- (4) in subsection (i)(1)(C), by striking ‘‘lim- the financial position of the Fund. The Sec- ing subsections (g) and (h); and itations’’ and inserting ‘‘limitation’’; and retary shall submit a report annually to the (2) in section 519(e) (12 U.S.C. 1735c(e)), by (5) by adding at the end the following new Congress describing the results of such study striking ‘‘203(b)’’ and all that follows subsection: and assessing the financial status of the through ‘‘203(i)’’ and inserting ‘‘203, except as ‘‘(o) AUTHORITY TO INSURE HOME PURCHASE Fund. The report shall recommend adjust- determined by the Secretary’’. MORTGAGES.— ments to underwriting standards, program SEC. 217. HAWAIIAN HOME LANDS AND INDIAN ‘‘(1) IN GENERAL.—Notwithstanding any participation, or premiums, if necessary, to RESERVATIONS. other provision in this section, the Secretary ensure that the Fund remains financially (a) HAWAIIAN HOME LANDS.—Section 247(c) may insure, upon application by a mort- sound. of the National Housing Act (12 U.S.C. 1715z– gagee, a home equity conversion mortgage ‘‘(5) QUARTERLY REPORTS.—During each fis- 12) is amended— upon such terms and conditions as the Sec- cal year, the Secretary shall submit a report (1) by striking ‘‘General Insurance Fund retary may prescribe, when the primary pur- to the Congress for each quarter, which shall established in section 519’’ and inserting pose of the home equity conversion mortgage specify for mortgages that are obligations of ‘‘Mutual Mortgage Insurance Fund’’; and is to enable an elderly mortgagor to pur- the Fund— (2) in the second sentence, by striking ‘‘(1) chase a 1- to 4-family dwelling in which the ‘‘(A) the cumulative volume of loan guar- all references’’ and all that follows through mortgagor will occupy or occupies one of the antee commitments that have been made ‘‘and (2)’’. units. during such fiscal year through the end of (b) INDIAN RESERVATIONS.—Section 248(f) of ‘‘(2) LIMITATION ON PRINCIPAL OBLIGATION.— the quarter for which the report is sub- the National Housing Act (12 U.S.C. 1715z–13) A home equity conversion mortgage insured mitted; is amended— pursuant to paragraph (1) shall involve a ‘‘(B) the types of loans insured, categorized (1) by striking ‘‘General Insurance Fund’’ principal obligation that does not exceed the by risk; the first place it appears and all that follows limitation under subsection (g) of this sec- ‘‘(C) any significant changes between ac- through ‘‘519’’ and inserting ‘‘Mutual Mort- tion on the maximum amount of the benefits tual and projected claim and prepayment ac- gage Insurance Fund’’; and of insurance under this section.’’. tivity; (2) in the second sentence, by striking ‘‘(1) (b) MORTGAGES FOR COOPERATIVES.—Sub- ‘‘(D) projected versus actual loss rates; and all references’’ and all that follows through section (b) of section 255 of the National ‘‘(E) updated projections of the annual sub- ‘‘and (2)’’. Housing Act (12 U.S.C. 1715z–20(b)) is amend- sidy rates to ensure that increases in risk to SEC. 218. CONFORMING AND TECHNICAL AMEND- ed— the Fund are identified and mitigated by ad- MENTS. (1) in paragraph (4)— justments to underwriting standards, pro- (a) REPEALS.—The following provisions of (A) by inserting ‘‘a first or subordinate gram participation, or premiums, and the fi- the National Housing Act are repealed: mortgage or lien’’ before ‘‘on all stock’’; nancial soundness of the Fund is maintained. (1) Subsection (i) of section 203 (12 U.S.C. (B) by inserting ‘‘unit’’ after ‘‘dwelling’’; The first quarterly report under this para- 1709(i)). and graph shall be submitted on the last day of (2) Subsection (o) of section 203 (12 U.S.C. (C) by inserting ‘‘a first mortgage or first the first quarter of fiscal year 2008, or upon 1709(o)). lien’’ before ‘‘on a leasehold’’; and the expiration of the 90-day period beginning (3) Subsection (p) of section 203 (12 U.S.C. (2) in paragraph (5), by inserting ‘‘a first or on the date of the enactment of the Expand- 1709(p)). subordinate lien on’’ before ‘‘all stock’’. ing American Homeownership Act of 2008, (4) Subsection (q) of section 203 (12 U.S.C. (c) PROHIBITION ON REQUIRED PURCHASE OF whichever is later. 1709(q)). AN ANNUITY.—Section 255 of the National ‘‘(6) ADJUSTMENT OF PREMIUMS.—If, pursu- (5) Section 222 (12 U.S.C. 1715m). Housing Act of 1937 (12 U.S.C. 1715z–20) is ant to the independent actuarial study of the (6) Section 237 (12 U.S.C. 1715z–2). amended— Fund required under paragraph (5), the Sec- (7) Section 245 (12 U.S.C. 1715z–10). (1) by striking subparagraph (B) of sub- retary determines that the Fund is not meet- (b) DEFINITION OF AREA.—Section section (d)(2) and inserting the following new ing the operational goals established under 203(u)(2)(A) of the National Housing Act (12 subparagraph: paragraph (8) or there is a substantial prob- U.S.C. 1709(u)(2)(A)) is amended by striking ‘‘(B) has received adequate counseling by a ability that the Fund will not maintain its ‘‘shall’’ and all that follows and inserting third party (other than a reverse mortgage established target subsidy rate, the Sec- ‘‘means a metropolitan statistical area as es- lender, servicer or investor, or an entity en- retary may either make programmatic ad- tablished by the Office of Management and gaged in the sale of annuities, investments, justments under section 203 as necessary to Budget;’’. long-term care insurance, or any other type reduce the risk to the Fund, or make appro- (c) DEFINITION OF STATE.—Section 201(d) of of financial or insurance product) as pro- priate premium adjustments. the National Housing Act (12 U.S.C. 1707(d)) vided in subsection (f);’’; ‘‘(7) OPERATIONAL GOALS.—The operational is amended by striking ‘‘the Trust Territory (2) by striking the first sentence of sub- goals for the Fund are— of the Pacific Islands’’ and inserting ‘‘the section (f) and inserting the following new

VerDate Mar 15 2010 15:08 Nov 08, 2010 Jkt 069102 PO 00000 Frm 00040 Fmt 0688 Sfmt 0634 E:\BR08\H08MY8.001 H08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD 8184 CONGRESSIONAL RECORD—HOUSE, Vol. 154, Pt. 6 May 8, 2008 sentence: ‘‘The Secretary shall provide or mortgages to analyze and determine the ef- the date of the enactment of this Act, the cause to be provided and paid for by entities fects of reducing the amounts of such pre- Comptroller General shall submit a report to other than a reverse mortgage lender, miums from the amounts charged as of the the Congress and the Secretary of Housing servicer or investor, or an entity engaged in date of the enactment of this Act on: (1) and Urban Development setting forth the re- the sale of annuities, investments, long-term costs to mortgagors; and (2) the financial sults and conclusions of the study conducted care insurance, or any other type of financial soundness of the program. Not later than the pursuant to subsection (a). or insurance product the information re- expiration of the 12-month period beginning (c) HUD REPORT.—Not later than the expi- quired in subsection (d)(2)(B).’’; and on the date of the enactment of this Act, the ration of the 18-month period beginning upon (3) by striking subsections (l) and (m) and Secretary shall submit a report to the Con- the date of the enactment of this Act, the inserting the following new subsection: gress setting forth the results and conclu- Secretary of Housing and Urban Develop- ‘‘(l) REGULATIONS TO PROTECT ELDERLY sions of the study. ment may submit a report to the Congress HOMEOWNERS.— (f) PURCHASE AUTHORITY OF FANNIE MAE making recommendations regarding any ‘‘(1) IN GENERAL.—Not later than 6 months AND FREDDIE MAC.— changes in requirements for participation of after the date of the enactment of the Ex- (1) FANNIE MAE.—Section 302(b) of the Fed- mortgage brokers and correspondent lenders panding American Homeownership Act of eral National Mortgage Association Charter in the mortgage insurance programs under 2008, the Secretary shall, in consultation Act (12 U.S.C. 1717(b)) is amended by adding the National Housing Act arising from a re- with other relevant Federal departments and at the end the following: view of the study conducted pursuant to sub- ‘‘(7) The corporation is authorized to pur- agencies, prescribe regulations to help pro- section (a). tect elderly homeowners from the marketing chase, service, sell, lend on the security of, and otherwise deal in any mortgage insured SEC. 221. CONFORMING LOAN LIMIT IN DISASTER of financial and insurance products not in AREAS. the interest of such homeowners, including under section 255 of the National Housing the marketing or sale of an annuity as a con- Act (12 U.S.C. 1715z–20), notwithstanding the Section 203(h) of the National Housing Act dition of obtaining any home equity conver- limitations under paragraph (2) on the max- (12 U.S.C. 1709) is amended— sion mortgage. imum original principal obligations of mort- (1) by inserting after ‘‘property’’ the fol- gages.’’. ‘‘(2) CONSULTATION.—In developing the reg- lowing: ‘‘plus any initial service charges, ap- REDDIE MAC.—Section 305(a) of the ulations required under paragraph (1), the (2) F praisal, inspection and other fees in connec- Federal Home Loan Mortgage Corporation Secretary shall consult with consumer advo- tion with the mortgage as approved by the Act (12 U.S.C. 1454(a)) is amended by adding cates (including recognized experts in con- Secretary,’’; at the end the following: sumer protection), industry representatives, (2) by striking the second sentence (as ‘‘(6) The Corporation is authorized to pur- representatives of counseling organizations, added by chapter 7 of the Emergency Supple- chase, service, sell, lend on the security of, and other interested parties.’’. mental Appropriations Act of 1994 (Public and otherwise deal in any mortgage insured Law 103–211; 108 Stat. 12)); and (d) LIMITATION ON ORIGINATION FEES.—Sec- under section 255 of the National Housing tion 255 of the National Housing Act (12 (3) by adding at the end the following new Act (12 U.S.C. 1715z–20), notwithstanding the sentence: ‘‘In any case in which the single U.S.C. 1715z–20), as amended by the preceding limitations under paragraph (2) on the max- provisions of this section, is further amend- family residence to be insured under this imum original principal obligations of mort- subsection is within a jurisdiction in which ed— gages.’’. (1) by redesignating subsections (k), (l), the President has declared a major disaster SEC. 220. STUDY ON PARTICIPATION OF MORT- to have occurred, the Secretary is author- and (m) as subsections (l), (m), and (n), re- GAGE BROKERS AND COR- spectively; and ized, for a temporary period not to exceed 36 RESPONDENT LENDERS. months from the date of such Presidential (2) by inserting after subsection (j) the fol- (a) STUDY.—The Comptroller General of declaration, to enter into agreements to in- lowing new subsection: the United States shall conduct a study, sure a mortgage which involves a principal ‘‘(k) LIMITATION ON ORIGINATION FEES.— which shall be completed not later than the obligation of up to 100 percent of the dollar The Secretary shall establish limits on the expiration of the 12-month period beginning limitation determined under section 305(a)(2) origination fee that may be charged to a on the date of the enactment of this Act, of the Federal Home Loan Mortgage Cor- mortgagor under a mortgage insured under which shall analyze and determine— poration Act for a single family residence, this section, which limitations shall— (1) the extent to which the financial audit and not in excess of 100 percent of the ap- ‘‘(1) be equal to 2.0 percent of the max- and net worth requirements impede partici- praised value of the property plus any initial imum claim amount of the mortgage up to a pation by mortgage brokers and cor- service charges, appraisal, inspection and maximum claim amount of $200,000 plus 1 respondent lenders in the mortgage insur- other fees in connection with the mortgage percent of any portion of the maximum ance programs under the National Housing as approved by the Secretary.’’. claim amount that is greater than $200,000, Act, as measured by the number and value of unless adjusted thereafter on the basis of an such insured mortgages, disaggregated by SEC. 222. FAILURE TO PAY AMOUNTS FROM ES- analysis of (A) costs to mortgagors, and (B) the States in which the properties subject to CROW ACCOUNTS FOR SINGLE FAM- the impact on the reverse mortgage market; such mortgages are located; ILY MORTGAGES. ‘‘(2) be subject to a minimum allowable (2) the extent and effectiveness of the fi- (a) PENALTIES.—Section 536 of the National amount; nancial audit and net worth requirements in Housing Act (12 U.S.C. 1735f–14) is amended— ‘‘(3) provide that the origination fee may protecting the Mutual Mortgage Insurance (1) in subsection (a)(1), by inserting be fully financed with the mortgage; Fund; ‘‘servicers (including escrow account ‘‘(4) include any fees paid to correspondent (3) the extent and effectiveness of the su- servicers),’’ after ‘‘appraisers,’’; mortgagees approved by the Secretary or to pervision and quality control enforcement, (2) in subsection (b)(1)— mortgage brokers; by the Secretary, of mortgagees in the FHA (A) in the matter preceding subparagraph ‘‘(5) apply beginning upon the date that the program, separate from the financial audit (A), by inserting ‘‘or other participant re- maximum dollar amount limitation on the and net worth requirements for participa- ferred to in subsection (a),’’ after ‘‘lender,’’; benefits of insurance under this section is tion, in protecting the Mutual Mortgage In- and first increased pursuant to the amendments surance Fund; (B) by inserting at the end the following made by section 219(a)(3) of the Expanding (4) the extent to which allowing a mort- new subparagraphs: American Homeownership Act of 2008; and gage broker to secure a surety bond in lieu of ‘‘(K) In the case of a mortgage for a 1- to ‘‘(6) be subject to a maximum origination the financial audit and net worth require- 4-family residence insured under title II that fee of $6,000, except that such maximum ments would increase participation by mort- requires the mortgagor to make payments to limit shall be adjusted in accordance with gage brokers and correspondent lenders in the mortgagee or other servicer of the mort- the annual percentage increase in the Con- the mortgage insurance programs under the gage for deposit into an escrow account for sumer Price Index of the Bureau of Labor National Housing Act; the purpose of assuring payment of taxes, in- Statistics of the Department of Labor in in- (5) the extent to which allowing a mort- surance premiums, and other charges with crements of $500 only when the percentage gage broker to secure a surety bond in lieu of respect to the property, failure on the part of increase in such index, when applied to the the financial audit and net worth require- the servicer to make any such payment from maximum origination fee, produce dollar in- ments would protect the Mutual Mortgage the escrow account by the deadline to avoid creases that exceed $500.’’. Insurance Fund; and a penalty with respect to such payment pro- (e) STUDY REGARDING MORTGAGE INSURANCE (6) the potential impact of such changes on vided for in the mortgage, unless the servicer PREMIUMS.—The Secretary of Housing and the costs incurred by the Secretary of Hous- was not provided notice of such deadline. Urban Development shall conduct a study re- ing and Urban Development in administering ‘‘(L) In the case of any failure to make any garding mortgage insurance premiums the mortgage insurance programs under such payment as described in subparagraph (K), charged under the program under section 255 Act. submitting any information to a consumer of the National Housing Act (12 U.S.C. 1715z– (b) GAO REPORT.—Not later than the expi- reporting agency (as such term is defined in 20) for insurance of home equity conversion ration of the 12-month period beginning on section 603(f) of the Fair Credit Reporting

VerDate Mar 15 2010 15:08 Nov 08, 2010 Jkt 069102 PO 00000 Frm 00041 Fmt 0688 Sfmt 0634 E:\BR08\H08MY8.001 H08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD May 8, 2008 CONGRESSIONAL RECORD—HOUSE, Vol. 154, Pt. 6 8185 Act (15 U.S.C. 1681a(f))) regarding such fail- tive mortgagors under mortgages on 1- to 4- in extending homeownership opportunities ure that is adverse to the credit rating or in- family residences to be insured under this to higher credit risk or lower-income fami- terest of the mortgagor.’’; and title who have insufficient credit histories lies, in a sound manner. (3) in subsection (c)(3), by adding at the for determining their creditworthiness. Such (5) The Mutual Mortgage Insurance Fund end the following: ‘‘In the case of any failure alternative credit rating information may operates without cost to the taxpayers and to make a payment described in subsection include rent, utilities, and insurance pay- generates revenues for the Federal Govern- (b)(1)(K) for which the servicer fails to reim- ment histories, and such other information ment. burse the mortgagor (A) before the expira- as the Secretary considers appropriate. (b) SENSE OF CONGRESS.—It is the sense of tion of the 60-day period beginning on the ‘‘(b) SCOPE.—The Secretary may carry out the Congress that— deadline to avoid a penalty with respect to the pilot program under this section on a (1) the Secretary of Housing and Urban De- such payment, in the sum of the amount not limited basis or scope, and may consider lim- velopment should use a portion of the funds paid from the escrow account by such dead- iting the program— received from premiums paid for FHA single line and the amount of any penalties accru- ‘‘(1) to first-time homebuyers; or family housing mortgage insurance that are ing to the mortgagor that are attributable to ‘‘(2) metropolitan statistical areas signifi- in excess of the amounts paid out in claims such failure, or (B) in the amount of any at- cantly impacted by subprime lending. to substantially increase the funding for torneys fees incurred by the mortgagor and ‘‘(c) LIMITATION.—In any fiscal year, the technology used in such FHA program; attributable to such failure, the Secretary aggregate number of mortgages insured pur- (2) the goal of this investment should be to shall increase the amount of the penalty suant to the automated process established bring the technology used in such FHA pro- under subsection (a) for any such failure to under this section may not exceed 5 percent gram to the level and sophistication of the reimburse, unless the Secretary determines of the aggregate number of mortgages for 1- technology used in the conventional mort- there are mitigating circumstances.’’. to 4-family residences insured by the Sec- gage lending market, or to exceed such level; (b) PROHIBITION ON SUBMISSION OF INFORMA- retary under this title during the preceding and TION BY HUD.—Title II of the National Hous- fiscal year. (3) the Secretary of Housing and Urban De- ing Act (12 U.S.C. 1707 et seq.) is amended by ‘‘(d) SUNSET.—After the expiration of the 5- velopment should report to the Congress not adding at the end the following new section: year period beginning on the date of the en- later than 180 days after the date of the en- ‘‘SEC. 257. PROHIBITION REGARDING FAILURE actment of the Expanding American Home- actment of this Act regarding the progress ON PART OF SERVICER TO MAKE ES- ownership Act of 2008, the Secretary may not the Department is making toward such goal CROW PAYMENTS. enter into any new commitment to insure and if progress is not sufficient, the re- ‘‘In the case of any failure to make any any mortgage, or newly insure any mort- sources needed to make greater progress. payment as described in section 536(b)(1)(K), gage, pursuant to the automated process es- SEC. 226. CLARIFICATION OF DISPOSITION OF the Secretary may not submit any informa- tablished under this section.’’. CERTAIN PROPERTIES. tion to a consumer reporting agency (as such (b) GAO REPORT.—Not later than the expi- Notwithstanding any other provision of term is defined in section 603(f) of the Fair ration of the 4-year period beginning on the law, subtitle A of title II of the Deficit Re- Credit Reporting Act (15 U.S.C. 1681a(f))) re- date that the Secretary of Housing and duction Act of 2005 (12 U.S.C. 1701z–11 note) garding such failure that is adverse to the Urban Development first insures any mort- and the amendments made by such title credit rating or interest of the mortgagor.’’. gage pursuant to the automated process es- shall not apply to any transaction regarding SEC. 223. ACCEPTABLE IDENTIFICATION FOR FHA tablished under pilot program under section a multifamily real property for which— MORTGAGORS. 258 of the National Housing Act (as added by (1) the Secretary of Housing and Urban De- (a) IN GENERAL.—Title II of the National the amendment made by subsection (a) of velopment has received, before the date of Housing Act is amended by inserting after this section), the Comptroller General of the the enactment of such Act, written expres- section 209 (12 U.S.C. 1715) the following new United States shall submit to the Congress a sions of interest in purchasing the property section: report identifying the number of additional from both a city government and the hous- ‘‘SEC. 210. FORMS OF ACCEPTABLE IDENTIFICA- mortgagors served using such automated ing commission of such city; TION. process and the impact of such process and (2) after such receipt, the Secretary ac- ‘‘The Secretary may not insure a mortgage the insurance of mortgages pursuant to such quires title to the property at a foreclosure under any provision of this title unless the process on the safety and soundness of the sale; and mortgagor under the mortgage provides per- insurance funds under the National Housing (3) such city government and housing com- sonal identification in one of the following Act of which such mortgages are obligations. mission have resolved a previous disagree- forms: SEC. 225. SENSE OF CONGRESS REGARDING ment with respect to the disposition of the ‘‘(1) A valid social security number verified TECHNOLOGY FOR FINANCIAL SYS- property. in accordance with paragraph 3-1 C of chap- TEMS. SEC. 227. VALUATION OF MULTIFAMILY PROP- ter 3 of HUD Handbook 4155.1 REV-5. (a) CONGRESSIONAL FINDINGS.—The Con- ERTIES IN NONCOMPETITIVE SALES ‘‘(2) A driver’s license or identification gress finds the following: BY HUD TO STATES AND LOCAL- card issued by a State in the case of a State (1) The Government Accountability Office ITIES. that is in compliance with title II of the has cited the FHA single family housing Subtitle A of title II of the Deficit Reduc- REAL ID Act of 2005 (title II of division B of mortgage insurance program as a ‘‘high- tion Act of 2005 (Public Law 109–171; 120 Stat. Public Law 109–13; 49 U.S.C. 30301 note). risk’’ program, with a primary reason being 7) is amended by adding at the end the fol- ‘‘(3) A passport issued by the United States non-integrated and out-dated financial man- lowing new section: or a foreign government. agement systems. ‘‘SEC. 2004. VALUATION OF MULTIFAMILY PROP- ‘‘(4) A photo identification card issued by (2) The ‘‘Audit of the Federal Housing Ad- ERTIES IN NONCOMPETITIVE SALES the Secretary of Homeland Security (acting ministration’s Financial Statements for Fis- BY HUD TO STATES AND LOCAL- through the Director of the United States cal Years 2004 and 2003’’, conducted by the In- ITIES. Citizenship and Immigration Services).’’. spector General of the Department of Hous- ‘‘ ‘Notwithstanding any other provision of (b) EFFECTIVE DATE.—The requirements of ing and Urban Development reported as a law, in determining the market value of any section 210 of the National Housing Act (as material weakness that ‘‘HUD/FHA’s auto- multifamily real property or multifamily added by subsection (a) of this section) shall mated data processing [ADP] system envi- loan for any noncompetitive sale to a State take effect 6 months after the date of the en- ronment must be enhanced to more effec- or local government entity occurring during actment of this Act. tively support FHA’s business and budget fiscal year 2008, the Secretary shall consider, SEC. 224. PILOT PROGRAM FOR AUTOMATED processes’’. but not be limited to, industry standard ap- PROCESS FOR BORROWERS WITH- (3) Existing technology systems for the praisal practices, including the cost of re- OUT SUFFICIENT CREDIT HISTORY. FHA program have not been updated to meet pairs needed to bring the property at least to (a) ESTABLISHMENT.—Title II of the Na- the latest standards of the Mortgage Indus- minimum State and local code standards and tional Housing Act (12 U.S.C. 1707 et seq.), as try Standards Maintenance Organization and of maintaining the existing affordability re- amended by the preceding provisions of this have numerous deficiencies that lenders strictions imposed by the Secretary on the subtitle, is further amended by adding at the have outlined. multifamily real property or multifamily end the following new section: (4) Improvements to technology used in the loan.’.’’. ‘‘SEC. 258. PILOT PROGRAM FOR AUTOMATED FHA program will— SEC. 228. LIMITATION ON MORTGAGE INSURANCE PROCESS FOR BORROWERS WITH- (A) allow the FHA program to improve the PREMIUM INCREASES. OUT SUFFICIENT CREDIT HISTORY. management of the FHA portfolio, garner Notwithstanding any other provision of ‘‘(a) ESTABLISHMENT.—The Secretary shall greater efficiencies in its operations, and law, including any provision of this subtitle carry out a pilot program to establish, and lower costs across the program; and any amendment made by this subtitle— make available to mortgagees, an automated (B) result in efficiencies and lower costs (1) the premiums charged for mortgage in- process for providing alternative credit rat- for lenders participating in the program, al- surance under any program under the Na- ing information for mortgagors and prospec- lowing them to better use the FHA products tional Housing Act may not be increased

VerDate Mar 15 2010 15:08 Nov 08, 2010 Jkt 069102 PO 00000 Frm 00042 Fmt 0688 Sfmt 0634 E:\BR08\H08MY8.001 H08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD 8186 CONGRESSIONAL RECORD—HOUSE, Vol. 154, Pt. 6 May 8, 2008 above the premium amounts in effect under requirements that may be necessary to im- nancial institution that is executed under such program on October 1, 2006, unless the mediately carry out the provisions of this this title after the date of the enactment of Secretary of Housing and Urban Develop- subtitle. The notice shall take effect upon the by the Secretary shall be conclusive evi- ment determines that, absent such increase, issuance. dence of the eligibility of such financial in- insurance of additional mortgages under Subtitle B—FHA Manufactured Housing Loan stitution for insurance, and the validity of such program would, under the Federal Cred- Insurance Modernization any contract of insurance so executed shall it Reform Act of 1990, require the appropria- be incontestable in the hands of the bearer SECTION 251. SHORT TITLE. tion of new budget authority to cover the from the date of the execution of such con- This subtitle may be cited as the ‘‘FHA costs (as such term is defined in section 502 tract, except for fraud or misrepresentation Manufactured Housing Loan Modernization of the Federal Credit Reform Act of 1990 (2 on the part of such institution.’’. Act of 2008’’. U.S.C. 661a) of such insurance; and (b) APPLICABILITY.—The amendment made (2) a premium increase pursuant to para- SEC. 252. FINDINGS AND PURPOSES. by subsection (a) shall only apply to loans graph (1) may be made only by rule making (a) FINDINGS.—The Congress finds that— that are registered or endorsed for insurance in accordance with the procedures under sec- (1) manufactured housing plays a vital role after the date of the enactment of this Act. tion 553 of title 5, United States Code (not- in providing housing for low- and moderate- SEC. 255. MAXIMUM LOAN LIMITS. withstanding subsections (a)(2), (b)(B), and income families in the United States; (a) DOLLAR AMOUNTS.—Paragraph (1) of (d)(3) of such section). (2) the FHA title I insurance program for section 2(b) of the National Housing Act (12 SEC. 229. CIVIL MONEY PENALTIES FOR IMPROP- manufactured home loans traditionally has U.S.C. 1703(b)(1)) is amended— ERLY INFLUENCING APPRAISALS. been a major provider of mortgage insurance (1) in clause (ii) of subparagraph (A), by Paragraph (2) of section 536(b) of the Na- for home-only transactions; striking ‘‘$17,500’’ and inserting ‘‘$25,090’’; tional Housing Act (12 U.S.C. 1735f–14(b)(2)) is (3) the manufactured housing market is in (2) in subparagraph (C) by striking amended— the midst of a prolonged downturn which has ‘‘$48,600’’ and inserting ‘‘$69,678’’; (1) in subparagraph (B), by striking ‘‘or’’ at resulted in a severe contraction of tradi- (3) in subparagraph (D) by striking the end; tional sources of private lending for manu- ‘‘$64,800’’ and inserting ‘‘$92,904’’; (2) in subparagraph (C), by striking the pe- factured home purchases; (4) in subparagraph (E) by striking riod at the end and inserting ‘‘; or’’; and (4) during past downturns the FHA title I ‘‘$16,200’’ and inserting ‘‘$23,226’’; and (3) by adding at the end the following new insurance program for manufactured homes (5) by realigning subparagraphs (C), (D), subparagraph: has filled the lending void by providing sta- and (E) 2 ems to the left so that the left mar- ‘‘(D) in the case of an insured mortgage bility until the private markets could re- gins of such subparagraphs are aligned with under title II for a 1- to 4-family residence, cover; the margins of subparagraphs (A) and (B). compensating, instructing, inducing, coerc- (5) in 1992, during the manufactured hous- (b) ANNUAL INDEXING.—Subsection (b) of ing, or intimidating any person who con- ing industry’s last major recession, over section 2 of the National Housing Act (12 ducts an appraisal of the property in connec- 30,000 manufactured home loans were insured U.S.C. 1703(b)), as amended by the preceding tion with such mortgage, or attempting to under title I; provisions of this subtitle, is further amend- compensate, instruct, induce, coerce, or in- (6) in 2006, fewer than 1,500 manufactured ed by adding at the end the following new timidate such a person, for the purpose of housing loans were insured under title I; paragraph: causing the appraised value assigned to the (7) the loan limits for title I manufactured ‘‘(9) ANNUAL INDEXING OF MANUFACTURED property under the appraisal to be based on housing loans have not been adjusted for in- HOUSING LOANS.—The Secretary shall develop any other factor other than the independent flation since 1992; and a method of indexing in order to annually judgment of such person exercised in accord- (8) these problems with the title I program adjust the loan limits established in subpara- ance with applicable professional stand- have resulted in an atrophied market for graphs (A)(ii), (C), (D), and (E) of this sub- ards.’’. manufactured housing loans, leaving Amer- section. Such index shall be based on the manufactured housing price data collected SEC. 230. MORTGAGE INSURANCE PREMIUM RE- ican families who have the most difficulty FUNDS. achieving homeownership without adequate by the United States Census Bureau. The (a) AUTHORITY.—The Secretary of Housing financing options for home-only manufac- Secretary shall establish such index no later and Urban Development shall, to the extent tured home purchases. than one year after the date of the enact- that amounts are made available pursuant to (b) PURPOSES.—The purposes of this sub- ment of the FHA Manufactured Housing subsection (c), provide refunds of unearned title are— Loan Modernization Act of 2008.’’. (c) TECHNICAL AND CONFORMING CHANGES.— premium charges paid, at the time of insur- (1) to provide adequate funding for FHA-in- Paragraph (1) of section 2(b) of the National ance, for mortgage insurance under title II of sured manufactured housing loans for low- Housing Act (12 U.S.C. 1703(b)(1)) is amend- the National Housing Act (12 U.S.C. 1707 et and moderate-income homebuyers during all ed— seq.) to or on behalf of mortgagors under economic cycles in the manufactured hous- (1) by striking ‘‘No’’ and inserting ‘‘Except mortgages described in subsection (b). ing industry; as provided in the last sentence of this para- (b) ELIGIBLE MORTGAGES.—A mortgage de- (2) to modernize the FHA title I insurance graph, no’’; and scribed in this section is a mortgage on a program for manufactured housing loans to (2) by adding after and below subparagraph one- to four-family dwelling that— enhance participation by Ginnie Mae and the (G) the following: (1) was insured under title II of the Na- private lending markets; and tional Housing Act (12 U.S.C. 1707 et seq.); (3) to adjust the low loan limits for title I ‘‘The Secretary shall, by regulation, annu- (2) is otherwise eligible, under the last sen- manufactured home loan insurance to reflect ally increase the dollar amount limitations tence of subparagraph (A) of section 203(c)(2) the increase in costs since such limits were in subparagraphs (A)(ii), (C), (D), and (E) (as of such Act (12 U.S.C. 1709(c)(2)(A)), for a re- last increased in 1992 and to index the limits such limitations may have been previously fund of all unearned premium charges paid to inflation. adjusted under this sentence) in accordance with the index established pursuant to para- on the mortgage pursuant to such subpara- SEC. 253. EXCEPTION TO LIMITATION ON FINAN- graph (9).’’. graph, except that the mortgage— CIAL INSTITUTION PORTFOLIO. (A) was closed before December 8, 2004; and The second sentence of section 2(a) of the SEC. 256. INSURANCE PREMIUMS. (B) was endorsed on or after such date. National Housing Act (12 U.S.C. 1703(a)) is Subsection (f) of section 2 of the National (c) AUTHORIZATION OF APPROPRIATIONS.— amended— Housing Act (12 U.S.C. 1703(f)) is amended— There is authorized to be appropriated for (1) by striking ‘‘In no case’’ and inserting (1) by inserting ‘‘(1) PREMIUM CHARGES.—’’ each fiscal year such sums as may be nec- ‘‘Other than in connection with a manufac- after ‘‘(f)’’; and essary to provide refunds of unearned mort- tured home or a lot on which to place such (2) by adding at the end the following new gage insurance premiums pursuant to this a home (or both), in no case’’; and paragraph: ‘‘(2) MANUFACTURED HOME LOANS.—Not- section. (2) by striking ‘‘: Provided, That with’’ and withstanding paragraph (1), in the case of a inserting ‘‘. With’’. SEC. 231. SAVINGS PROVISION. loan, advance of credit, or purchase in con- Any mortgage insured under title II of the SEC. 254. INSURANCE BENEFITS. nection with a manufactured home or a lot National Housing Act before the date of en- (a) IN GENERAL.—Subsection (b) of section on which to place such a home (or both), the actment of this Act shall continue to be gov- 2 of the National Housing Act (12 U.S.C. premium charge for the insurance granted erned by the laws, regulations, orders, and 1703(b)), is amended by adding at the end the under this section shall be paid by the bor- terms and conditions to which it was subject following new paragraph: rower under the loan or advance of credit, as on the day before the date of the enactment ‘‘(8) INSURANCE BENEFITS FOR MANUFAC- follows: of this Act. TURED HOUSING LOANS.—Any contract of in- ‘‘(A) At the time of the making of the loan, SEC. 232. IMPLEMENTATION. surance with respect to loans, advances of advance of credit, or purchase, a single pre- Except as provided in section 223(b), the credit, or purchases in connection with a mium payment in an amount not to exceed Secretary of Housing and Urban Develop- manufactured home or a lot on which to 2.25 percent of the amount of the original in- ment shall by notice establish any additional place a manufactured home (or both) for a fi- sured principal obligation.

VerDate Mar 15 2010 15:08 Nov 08, 2010 Jkt 069102 PO 00000 Frm 00043 Fmt 0688 Sfmt 0634 E:\BR08\H08MY8.001 H08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD May 8, 2008 CONGRESSIONAL RECORD—HOUSE, Vol. 154, Pt. 6 8187 ‘‘(B) In addition to the premium under sub- visions of this title may be exercised by an (1) in paragraph (7), by striking ‘‘an enter- paragraph (A), annual premium payments officer appointed by the Secretary without prise’’ and inserting ‘‘a regulated entity’’; during the term of the loan, advance, or obli- the execution of any express delegation of (2) by striking ‘‘the enterprise’’ each place gation purchased in an amount not exceed- power or power of attorney. Nothing in this such term appears (except in paragraphs (4) ing 1.0 percent of the remaining insured prin- subsection shall be construed to prevent the and (18)) and inserting ‘‘the regulated enti- cipal balance (excluding the portion of the Secretary from delegating such power by ty’’; remaining balance attributable to the pre- order or by power of attorney, in the Sec- (3) in paragraph (5), by striking ‘‘Office of mium collected under subparagraph (A) and retary’s discretion, to any officer or agent Federal Housing Enterprise Oversight of the without taking into account delinquent pay- the Secretary may appoint.’’. Department of Housing and Urban Develop- ments or prepayments). SEC. 258. REVISION OF UNDERWRITING CRI- ment’’ and inserting ‘‘Federal Housing Fi- ‘‘(C) Premium charges under this para- TERIA. nance Agency’’; graph shall be established in amounts that (a) IN GENERAL.—Subsection (b) of section (4) in each of paragraphs (8), (9), (10), and are sufficient, but do not exceed the min- 2 of the National Housing Act (12 U.S.C. (19), by striking ‘‘Secretary’’ each place that imum amounts necessary, to maintain a neg- 1703(b)), as amended by the preceding provi- term appears and inserting ‘‘Director’’; ative credit subsidy for the program under sions of this subtitle, is further amended by (5) in paragraph (13), by inserting ‘‘, with this section for insurance of loans, advances adding at the end the following new para- respect to an enterprise,’’ after ‘‘means’’; of credit, or purchases in connection with a graph: (6) by redesignating paragraphs (16) manufactured home or a lot on which to ‘‘(10) FINANCIAL SOUNDNESS OF MANUFAC- through (19) as paragraphs (20) through (23), place such a home (or both), as determined TURED HOUSING PROGRAM.—The Secretary respectively; based upon risk to the Federal Government shall establish such underwriting criteria for (7) by striking paragraphs (14) and (15) and loans and advances of credit in connection under existing underwriting requirements. inserting the following new paragraphs: with a manufactured home or a lot on which ‘‘(D) The Secretary may increase the limi- ‘‘(18) REGULATED ENTITY.—The term ‘regu- to place a manufactured home (or both), in- tations on premium payments to percentages lated entity’ means— cluding such loans and advances represented above those set forth in subparagraphs (A) ‘‘(A) the Federal National Mortgage Asso- by obligations purchased by financial insti- and (B), but only if necessary, and not in ex- ciation and any affiliate thereof; tutions, as may be necessary to ensure that cess of the minimum increase necessary, to ‘‘(B) the Federal Home Loan Mortgage Cor- the program under this title for insurance maintain a negative credit subsidy as de- poration and any affiliate thereof; and for financial institutions against losses from scribed in subparagraph (C).’’. ‘‘(C) each Federal home loan bank. such loans, advances of credit, and purchases SEC. 257. TECHNICAL CORRECTIONS. ‘‘(19) REGULATED ENTITY-AFFILIATED is financially sound.’’. (a) DATES.—Subsection (a) of section 2 of PARTY.—The term ‘regulated entity-affili- the National Housing Act (12 U.S.C. 1703(a)) (b) TIMING.—Not later than the expiration of the 6-month period beginning on the date ated party’ means— is amended— ‘‘(A) any director, officer, employee, or (1) by striking ‘‘on and after July 1, 1939,’’ of the enactment of this Act, the Secretary of Housing and Urban Development shall re- agent for, a regulated entity, or controlling each place such term appears; and vise the existing underwriting criteria for shareholder of an enterprise; (2) by striking ‘‘made after the effective the program referred to in paragraph (10) of ‘‘(B) any shareholder, affiliate, consultant, date of the Housing Act of 1954’’. section 2(b) of the National Housing Act (as or joint venture partner of a regulated enti- (b) AUTHORITY OF SECRETARY.—Subsection added by subsection (a) of this section) in ac- ty, and any other person, as determined by (c) of section 2 of the National Housing Act cordance with the requirements of such para- the Director (by regulation or on a case-by- (12 U.S.C. 1703(c)) is amended to read as fol- graph. case basis) that participates in the conduct lows: SEC. 259. REQUIREMENT OF SOCIAL SECURITY of the affairs of a regulated entity, except ‘‘(c) HANDLING AND DISPOSAL OF PROP- ACCOUNT NUMBER FOR ASSIST- that a shareholder of a regulated entity shall ERTY.— ANCE. not be considered to have participated in the ‘‘(1) AUTHORITY OF SECRETARY.—Notwith- Section 2 of the National Housing Act (12 affairs of that regulated entity solely by rea- standing any other provision of law, the Sec- U.S.C. 1703) is amended by adding at the end son of being a member or customer of the retary may— the following new subsection: regulated entity; ‘‘(A) deal with, complete, rent, renovate, ‘‘(j) REQUIREMENT OF SOCIAL SECURITY AC- ‘‘(C) any independent contractor for a reg- modernize, insure, or assign or sell at public COUNT NUMBER FOR FINANCING.—No insurance ulated entity (including any attorney, ap- or private sale, or otherwise dispose of, for shall be granted under this section with re- praiser, or accountant), if— cash or credit in the Secretary’s discretion, spect to any obligation representing any ‘‘(i) the independent contractor knowingly and upon such terms and conditions and for loan, advance of credit, or purchase by a fi- or recklessly participates in— such consideration as the Secretary shall de- nancial institution unless the borrower to ‘‘(I) any violation of any law or regulation; termine to be reasonable, any real or per- which the loan or advance of credit was ‘‘(II) any breach of fiduciary duty; or sonal property conveyed to or otherwise ac- made has a valid social security number.’’. ‘‘(III) any unsafe or unsound practice; and quired by the Secretary, in connection with SEC. 260. GAO STUDY OF MITIGATION OF TOR- the payment of insurance heretofore or here- NADO RISKS TO MANUFACTURED ‘‘(ii) such violation, breach, or practice after granted under this title, including any HOMES. caused, or is likely to cause, more than a evidence of debt, contract, claim, personal The Comptroller General of the United minimal financial loss to, or a significant property, or security assigned to or held by States shall assess how the Secretary of adverse effect on, the regulated entity; and him in connection with the payment of in- Housing and Urban Development utilizes the ‘‘(D) any not-for-profit corporation that re- surance heretofore or hereafter granted FHA manufactured housing loan insurance ceives its principal funding, on an ongoing under this section; and program under title I of the National Hous- basis, from any regulated entity.’’. ‘‘(B) pursue to final collection, by way of ing Act, the community development block (8) by redesignating paragraphs (8) through compromise or otherwise, all claims assigned grant program under title I of the Housing (13) as paragraphs (12) through (17), respec- to or held by the Secretary and all legal or and Community Development Act of 1974, tively; and equitable rights accruing to the Secretary in and other programs and resources available (9) by inserting after paragraph (7) the fol- connection with the payment of such insur- to the Secretary to mitigate the risks to lowing new paragraph: ance, including unpaid insurance premiums manufactured housing residents and commu- ‘‘(11) FEDERAL HOME LOAN BANK.—The term owed in connection with insurance made nities resulting from tornados. The Comp- ‘Federal home loan bank’ means a bank es- available by this title. troller General shall submit to the Congress tablished under the authority of the Federal ‘‘(2) ADVERTISEMENTS FOR PROPOSALS.— a report on the conclusions and rec- Home Loan Bank Act.’’; Section 3709 of the Revised Statutes shall ommendations of the assessment conducted (10) by redesignating paragraphs (2) not be construed to apply to any contract of pursuant to this section not later than the through (7) as paragraphs (5) through (10), re- hazard insurance or to any purchase or con- expiration of the 12-month period beginning spectively; and tract for services or supplies on account of on the date of the enactment of this Act. (11) by inserting after paragraph (1) the fol- such property if the amount thereof does not TITLE III—REFORM OF GOVERNMENT- lowing new paragraphs: exceed $25,000. SPONSORED ENTITIES FOR HOUSING FI- ‘‘(2) AGENCY.—The term ‘Agency’ means ‘‘(3) DELEGATION OF AUTHORITY.—The power NANCE the Federal Housing Finance Agency. to convey and to execute in the name of the SEC. 301. SHORT TITLE. ‘‘(3) AUTHORIZING STATUTES.—The term ‘au- Secretary, deeds of conveyance, deeds of re- This title may be cited as the ‘‘Federal thorizing statutes’ means— lease, assignments and satisfactions of mort- Housing Finance Reform Act of 2008’’. ‘‘(A) the Federal National Mortgage Asso- gages, and any other written instrument re- SEC. 302. DEFINITIONS. ciation Charter Act; lating to real or personal property or any in- Section 1303 of the Housing and Commu- ‘‘(B) the Federal Home Loan Mortgage Cor- terest therein heretofore or hereafter ac- nity Development Act of 1992 (12 U.S.C. 4502) poration Act; and quired by the Secretary pursuant to the pro- is amended— ‘‘(C) the Federal Home Loan Bank Act.

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‘‘(4) BOARD.—The term ‘Board’ means the Urban Development shall serve as the Direc- SEC. 312. DUTIES AND AUTHORITIES OF DIREC- Federal Housing Enterprise Board estab- tor until a successor has been appointed TOR. lished under section 1313B.’’. under paragraph (1). (a) IN GENERAL.—The Housing and Commu- Subtitle A—Reform of Regulation of ‘‘(c) DEPUTY DIRECTOR OF THE DIVISION OF nity Development Act of 1992 (12 U.S.C. 4513) Enterprises and Federal Home Loan Banks ENTERPRISE REGULATION.— is amended by striking section 1313 and in- ‘‘(1) IN GENERAL.—The Agency shall have a serting the following new sections: CHAPTER 1—IMPROVEMENT OF SAFETY Deputy Director of the Division of Enter- ‘‘SEC. 1313. DUTIES AND AUTHORITIES OF DIREC- AND SOUNDNESS prise Regulation, who shall be appointed by TOR. SEC. 311. ESTABLISHMENT OF THE FEDERAL the Director from among individuals who are ‘‘(a) DUTIES.— HOUSING FINANCE AGENCY. citizens of the United States, and have a ‘‘(1) PRINCIPAL DUTIES.—The principal du- (a) IN GENERAL.—The Housing and Commu- demonstrated understanding of financial ties of the Director shall be— nity Development Act of 1992 (12 U.S.C. 4501 management or oversight and of mortgage ‘‘(A) to oversee the operations of each reg- et seq.) is amended by striking sections 1311 securities markets and housing finance. ulated entity and any joint office of the Fed- and 1312 and inserting the following: ‘‘(2) FUNCTIONS.—The Deputy Director of eral Home Loan Banks; and ‘‘SEC. 1311. ESTABLISHMENT OF THE FEDERAL the Division of Enterprise Regulation shall ‘‘(B) to ensure that— HOUSING FINANCE AGENCY. have such functions, powers, and duties with ‘‘(i) each regulated entity operates in a ‘‘(a) ESTABLISHMENT.—There is established respect to the oversight of the enterprises as safe and sound manner, including mainte- the Federal Housing Finance Agency, which the Director shall prescribe. nance of adequate capital and internal con- shall be an independent agency of the Fed- ‘‘(d) DEPUTY DIRECTOR OF THE DIVISION OF trols; eral Government. FEDERAL HOME LOAN BANK REGULATION.— ‘‘(ii) the operations and activities of each ‘‘(b) GENERAL SUPERVISORY AND REGU- ‘‘(1) IN GENERAL.—The Agency shall have a regulated entity foster liquid, efficient, com- LATORY AUTHORITY.— Deputy Director of the Division of Federal petitive, and resilient national housing fi- ‘‘(1) IN GENERAL.—Each regulated entity Home Loan Bank Regulation, who shall be nance markets that minimize the cost of shall, to the extent provided in this title, be appointed by the Director from among indi- housing finance (including activities relating subject to the supervision and regulation of viduals who are citizens of the United to mortgages on housing for low- and the Agency. States, have a demonstrated understanding moderate- income families involving a rea- ‘‘(2) AUTHORITY OVER FANNIE MAE, FREDDIE of financial management or oversight and of sonable economic return that may be less MAC, AND FEDERAL HOME LOAN BANKS.—The the Federal Home Loan Bank System and than the return earned on other activities); Director of the Federal Housing Finance housing finance. ‘‘(iii) each regulated entity complies with Agency shall have general supervisory and ‘‘(2) FUNCTIONS.—The Deputy Director of this title and the rules, regulations, guide- regulatory authority over each regulated en- the Division of Federal Home Loan Bank lines, and orders issued under this title and tity and shall exercise such general regu- Regulation shall have such functions, pow- the authorizing statutes; and latory and supervisory authority, including ers, and duties with respect to the oversight ‘‘(iv) each regulated entity carries out its such duties and authorities set forth under of the Federal home loan banks as the Direc- statutory mission only through activities section 1313 of this Act, to ensure that the tor shall prescribe. that are consistent with this title and the purposes of this Act, the authorizing stat- ‘‘(e) DEPUTY DIRECTOR FOR HOUSING.— authorizing statutes. utes, and any other applicable law are car- ‘‘(1) IN GENERAL.—The Agency shall have a ‘‘(2) SCOPE OF AUTHORITY.—The authority ried out. The Director shall have the same Deputy Director for Housing, who shall be of the Director shall include the authority— supervisory and regulatory authority over appointed by the Director from among indi- ‘‘(A) to review and, if warranted based on any joint office of the Federal home loan viduals who are citizens of the United the principal duties described in paragraph banks, including the Office of Finance of the States, and have a demonstrated under- (1), reject any acquisition or transfer of a Federal Home Loan Banks, as the Director standing of the housing markets and housing controlling interest in an enterprise; and has over the individual Federal home loan finance and of community and economic de- ‘‘(B) to exercise such incidental powers as banks. velopment. may be necessary or appropriate to fulfill ‘‘(c) SAVINGS PROVISION.—The authority of ‘‘(2) FUNCTIONS.—The Deputy Director for the duties and responsibilities of the Direc- the Director to take actions under subtitles Housing shall have such functions, powers, tor in the supervision and regulation of each B and C shall not in any way limit the gen- and duties with respect to the oversight of regulated entity. eral supervisory and regulatory authority the housing mission and goals of the enter- ‘‘(b) DELEGATION OF AUTHORITY.—The Di- granted to the Director. prises, and with respect to oversight of the rector may delegate to officers or employees ‘‘SEC. 1312. DIRECTOR. housing finance and community and eco- of the Agency, including each of the Deputy ‘‘(a) ESTABLISHMENT OF POSITION.—There is nomic development mission of the Federal Directors, any of the functions, powers, or established the position of the Director of home loan banks, as the Director shall pre- duties of the Director, as the Director con- the Federal Housing Finance Agency, who scribe. siders appropriate. ‘‘(f) LIMITATIONS.—The Director and each shall be the head of the Agency. ‘‘(c) LITIGATION AUTHORITY.— of the Deputy Directors may not— ‘‘(b) APPOINTMENT; TERM.— ‘‘(1) IN GENERAL.—In enforcing any provi- ‘‘(1) have any direct or indirect financial ‘‘(1) APPOINTMENT.—The Director shall be sion of this title, any regulation or order interest in any regulated entity or regulated appointed by the President, by and with the prescribed under this title, or any other pro- entity-affiliated party; advice and consent of the Senate, from vision of law, rule, regulation, or order, or in ‘‘(2) hold any office, position, or employ- among individuals who are citizens of the any other action, suit, or proceeding to ment in any regulated entity or regulated United States, have a demonstrated under- which the Director is a party or in which the entity-affiliated party; or standing of financial management or over- Director is interested, and in the administra- ‘‘(3) have served as an executive officer or sight, and have a demonstrated under- tion of conservatorships and receiverships, director of any regulated entity, or regulated standing of capital markets, including the the Director may act in the Director’s own entity-affiliated party, at any time during mortgage securities markets and housing fi- name and through the Director’s own attor- the 3-year period ending on the date of ap- nance. neys, or request that the Attorney General pointment of such individual as Director or ‘‘(2) TERM AND REMOVAL.—The Director of the United States act on behalf of the Di- Deputy Director. shall be appointed for a term of 5 years and rector. ‘‘(g) OMBUDSMAN.—The Director shall es- may be removed by the President only for tablish the position of the Ombudsman in ‘‘(2) CONSULTATION WITH ATTORNEY GEN- cause. the Agency. The Director shall provide that ERAL.—The Director shall provide notice to, ‘‘(3) VACANCY.—A vacancy in the position the Ombudsman will consider complaints and consult with, the Attorney General of of Director that occurs before the expiration and appeals from any regulated entity and the United States before taking an action of the term for which a Director was ap- any person that has a business relationship under paragraph (1) of this subsection or pointed shall be filled in the manner estab- with a regulated entity and shall specify the under section 1344(a), 1345(d), 1348(c), 1372(e), lished under paragraph (1), and the Director duties and authority of the Ombudsman.’’. 1375(a), 1376(d), or 1379D(c), except that, if the appointed to fill such vacancy shall be ap- (b) APPOINTMENT OF DIRECTOR.—Notwith- Director determines that any delay caused pointed only for the remainder of such term. standing any other provision of law or of this by such prior notice and consultation may ‘‘(4) SERVICE AFTER END OF TERM.—An indi- title, the President may, any time after the adversely affect the safety and soundness re- vidual may serve as the Director after the date of the enactment of this Act, appoint an sponsibilities of the Director under this title, expiration of the term for which appointed individual to serve as the Director of the the Director shall notify the Attorney Gen- until a successor has been appointed. Federal Housing Finance Agency, as such of- eral as soon as reasonably possible after tak- ‘‘(5) TRANSITIONAL PROVISION.—Notwith- fice is established by the amendment made ing such action. standing paragraphs (1) and (2), the Director by subsection (a). This subsection shall take ‘‘(3) SUBJECT TO SUIT.—Except as otherwise of the Office of Federal Housing Enterprise effect on the date of the enactment of this provided by law, the Director shall be sub- Oversight of the Department of Housing and Act. ject to suit (other than suits on claims for

VerDate Mar 15 2010 15:08 Nov 08, 2010 Jkt 069102 PO 00000 Frm 00045 Fmt 0688 Sfmt 0634 E:\BR08\H08MY8.001 H08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD May 8, 2008 CONGRESSIONAL RECORD—HOUSE, Vol. 154, Pt. 6 8189 money damages) by a regulated entity or di- undercapitalized, the plan may be a part of ‘‘SEC. 1313B. FEDERAL HOUSING ENTERPRISE rector or officer thereof with respect to any the capital restoration plan for the regulated BOARD. matter under this title or any other applica- entity under section 1369C. ‘‘(a) IN GENERAL.—There is established the ble provision of law, rule, order, or regula- ‘‘(C) DEADLINES FOR SUBMISSION AND RE- Federal Housing Enterprise Board, which tion under this title, in the United States VIEW.—The Director shall by regulation es- shall advise the Director with respect to district court for the judicial district in tablish deadlines that— overall strategies and policies in carrying which the regulated entity has its principal ‘‘(i) provide the regulated entities with out the duties of the Director under this place of business, or in the United States reasonable time to submit plans required title. District Court for the District of Columbia, under subparagraph (A), and generally re- ‘‘(b) LIMITATIONS.—The Board may not ex- and the Director may be served with process quire a regulated entity to submit a plan not ercise any executive authority, and the Di- in the manner prescribed by the Federal later than 30 days after the Director deter- rector may not delegate to the Board any of Rules of Civil Procedure. mines that the entity fails to meet any the functions, powers, or duties of the Direc- ‘‘SEC. 1313A. PRUDENTIAL MANAGEMENT AND OP- standard established under subsection (a); tor. and ERATIONS STANDARDS. ‘‘(c) COMPOSITION.—The Board shall be ‘‘(a) STANDARDS.—The Director shall estab- ‘‘(ii) require the Director to act on plans comprised of 3 members, of whom— lish standards, by regulation, guideline, or expeditiously, and generally not later than ‘‘(1) one member shall be the Secretary of 30 days after the plan is submitted. order, for each regulated entity relating to— the Treasury; ‘‘(2) REQUIRED ORDER UPON FAILURE TO SUB- ‘‘(1) adequacy of internal controls and in- ‘‘(2) one member shall be the Secretary of MIT OR IMPLEMENT PLAN.—If a regulated enti- formation systems, including information Housing and Urban Development; and ty fails to submit an acceptable plan within security and privacy policies and practices, ‘‘(3) one member shall be the Director, who the time allowed under paragraph (1)(C), or taking into account the nature and scale of shall serve as the Chairperson of the Board. business operations; fails in any material respect to implement a plan accepted by the Director, the following ‘‘(d) MEETINGS.— ‘‘(2) independence and adequacy of internal ‘‘(1) IN GENERAL.—The Board shall meet audit systems; shall apply: ‘‘(A) REQUIRED CORRECTION OF DEFI- upon notice by the Director, but in no event ‘‘(3) management of credit and shall the Board meet less frequently than counterparty risk, including systems to CIENCY.—The Director shall, by order, re- quire the regulated entity to correct the de- once every 3 months. identify concentrations of credit risk and ‘‘(2) SPECIAL MEETINGS.—Either the Sec- prudential limits to restrict exposure of the ficiency. ‘‘(B) OTHER AUTHORITY.—The Director may, retary of the Treasury or the Secretary of regulated entity to a single counterparty or Housing and Urban Development may, upon groups of related counterparties; by order, take one or more of the following actions until the deficiency is corrected: giving written notice to the Director, require ‘‘(4) management of interest rate risk ex- a special meeting of the Board. posure; ‘‘(i) Prohibit the regulated entity from per- mitting its average total assets (as such ‘‘(e) TESTIMONY.—On an annual basis, the ‘‘(5) management of market risk, including term is defined in section 1316(b)) during any Board shall testify before Congress regard- standards that provide for systems that ac- calendar quarter to exceed its average total ing— curately measure, monitor, and control mar- assets during the preceding calendar quarter, ‘‘(1) the safety and soundness of the regu- ket risks and, as warranted, that establish or restrict the rate at which the average lated entities; limitations on market risk; total assets of the entity may increase from ‘‘(2) any material deficiencies in the con- ‘‘(6) adequacy and maintenance of liquidity one calendar quarter to another. duct of the operations of the regulated enti- and reserves; ‘‘(ii) Require the regulated entity— ties; ‘‘(7) management of any asset and invest- ‘‘(I) in the case of an enterprise, to in- ‘‘(3) the overall operational status of the ment portfolio; crease its ratio of core capital to assets. regulated entities; ‘‘(8) investments and acquisitions by a reg- ‘‘(II) in the case of a Federal home loan ‘‘(4) an evaluation of the performance of ulated entity, to ensure that they are con- bank, to increase its ratio of total capital (as the regulated entities in carrying out their sistent with the purposes of this Act and the such term is defined in section 6(a)(5) of the respective missions; authorizing statutes; Federal Home Loan Bank Act (12 U.S.C. ‘‘(5) operations, resources, and performance ‘‘(9) maintenance of adequate records, in 1426(a)(5)) to assets. of the Agency; and accordance with consistent accounting poli- ‘‘(iii) Require the regulated entity to take ‘‘(6) such other matters relating to the cies and practices that enable the Director any other action that the Director deter- Agency and its fulfillment of its mission, as to evaluate the financial condition of the mines will better carry out the purposes of the Board determines appropriate.’’. regulated entity; this section than any of the actions de- ‘‘(10) issuance of subordinated debt by that (b) ANNUAL REPORT OF THE DIRECTOR.—Sec- scribed in this subparagraph. particular regulated entity, as the Director tion 1319B(a) of the Housing and Community ‘‘(3) MANDATORY RESTRICTIONS.—In com- considers necessary; Development Act of 1992 (12 U.S.C. 4521 (a)) is plying with paragraph (2), the Director shall ‘‘(11) overall risk management processes, amended— take one or more of the actions described in including adequacy of oversight by senior (1) in paragraph (3), by striking ‘‘and’’ at clauses (i) through (iii) of paragraph (2)(B) management and the board of directors and the end; and if— of processes and policies to identify, meas- (2) by striking paragraph (4) and inserting ‘‘(A) the Director determines that the reg- ure, monitor, and control material risks, in- the following new paragraphs: ulated entity fails to meet any standard pre- cluding reputational risks, and for adequate, ‘‘(4) an assessment of the Board or any of scribed under subsection (a); well-tested business resumption plans for all its members with respect to— ‘‘(B) the regulated entity has not corrected major systems with remote site facilities to ‘‘(A) the safety and soundness of the regu- the deficiency; and protect against disruptive events; and lated entities; ‘‘(C) during the 18-month period before the ‘‘(12) such other operational and manage- ‘‘(B) any material deficiencies in the con- date on which the regulated entity first ment standards as the Director determines duct of the operations of the regulated enti- failed to meet the standard, the entity un- to be appropriate. ties; derwent extraordinary growth, as defined by ‘‘(C) the overall operational status of the ‘‘(b) FAILURE TO MEET STANDARDS.— the Director. regulated entities; and ‘‘(1) PLAN REQUIREMENT.— ‘‘(c) OTHER ENFORCEMENT AUTHORITY NOT ‘‘(D) an evaluation of the performance of ‘‘(A) IN GENERAL.—If the Director deter- AFFECTED.—The authority of the Director mines that a regulated entity fails to meet the regulated entities in carrying out their under this section is in addition to any other missions; any standard established under subsection authority of the Director.’’. (a)— ‘‘(5) operations, resources, and performance (b) INDEPENDENCE IN CONGRESSIONAL TESTI- of the Agency; ‘‘(i) if such standard is established by regu- MONY AND RECOMMENDATIONS.—Section 111 of lation, the Director shall require the regu- ‘‘(6) a description of the demographic Public Law 93–495 (12 U.S.C. 250) is amended makeup of the workforce of the Agency and lated entity to submit an acceptable plan to by striking ‘‘the Federal Housing Finance the Director within the time allowed under the actions taken pursuant to section Board’’ and inserting ‘‘the Director of the 1319A(b) to provide for diversity in the work- subparagraph (C); and Federal Housing Finance Agency’’. ‘‘(ii) if such standard is established by force; and SEC. 313. FEDERAL HOUSING ENTERPRISE ‘‘(7) such other matters relating to the guideline, the Director may require the regu- BOARD. Agency and its fulfillment of its mission.’’. lated entity to submit a plan described in (a) IN GENERAL.—Title XIII of the Housing clause (i). and Community Development Act of 1992 (12 SEC. 314. AUTHORITY TO REQUIRE REPORTS BY ‘‘(B) CONTENTS.—Any plan required under U.S.C. 4501 et seq.) is amended by inserting REGULATED ENTITIES. subparagraph (A) shall specify the actions after section 1313A, as added by the pre- Section 1314 of the Housing and Commu- that the regulated entity will take to correct ceding provisions of this title, the following nity Development Act of 1992 (12 U.S.C. 4514) the deficiency. If the regulated entity is new section: is amended—

VerDate Mar 15 2010 15:08 Nov 08, 2010 Jkt 069102 PO 00000 Frm 00046 Fmt 0688 Sfmt 0634 E:\BR08\H08MY8.001 H08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD 8190 CONGRESSIONAL RECORD—HOUSE, Vol. 154, Pt. 6 May 8, 2008 (1) in the section heading, by striking ‘‘EN- ignated by the Director, containing the fol- (A) in the subsection heading, by striking TERPRISES’’ and inserting ‘‘REGULATED lowing information: ‘‘ENTERPRISES’’ and inserting ‘‘REGULATED ENTITIES’’; ‘‘(A) TOTAL VALUE.—The total value of con- ENTITIES’’; (2) in subsection (a)— tributions made by the enterprise to non- (B) by realigning paragraph (2) two ems (A) in the subsection heading, by striking profit organizations during its previous fis- from the left margin, so as to align the left ‘‘SPECIAL REPORTS AND REPORTS OF FINAN- cal year. margin of such paragraph with the left mar- CIAL CONDITION’’ and inserting ‘‘REGULAR AND ‘‘(B) SUBSTANTIAL CONTRIBUTIONS.—If the gins of paragraph (1); SPECIAL REPORTS’’; value of contributions made by the enter- (C) in paragraph (1)— (B) in paragraph (1)— prise to any nonprofit organization during (i) by striking ‘‘Each enterprise’’ and in- (i) in the paragraph heading, by striking its previous fiscal year exceeds the des- serting ‘‘Each regulated entity’’; ‘‘FINANCIAL CONDITION’’ and inserting ‘‘REG- ignated amount, the name of that organiza- (ii) by striking ‘‘each enterprise’’ and in- ULAR REPORTS’’; and tion and the value of contributions. serting ‘‘each regulated entity’’; and (ii) by striking ‘‘reports of financial condi- ‘‘(C) SUBSTANTIAL CONTRIBUTIONS TO IN- (iii) by striking ‘‘both enterprises’’ and in- tion and operations’’ and inserting ‘‘regular SIDER-AFFILIATED CHARITIES.—Identification serting ‘‘all of the regulated entities’’; and reports on the condition (including financial of each contribution whose value exceeds the (D) in paragraph (3)— condition), management, activities, or oper- designated amount that were made by the (i) in subparagraph (B), by striking ‘‘sub- ations of the regulated entity, as the Direc- enterprise during the enterprise’s previous paragraph (A)’’ and inserting ‘‘clause (i)’’; tor considers appropriate’’; and fiscal year to any nonprofit organization of (ii) by redesignating subparagraphs (A), (C) in paragraph (2), after ‘‘submit special which a director, officer, or controlling per- (B), and (C) as clauses (i), (ii) and (ii), respec- reports’’ insert ‘‘on any of the topics speci- son of the enterprise, or a spouse thereof, tively, and realigning such clauses, as so re- fied in paragraph (1) or such other topics’’; was a director or trustee, the name of such designated, so as to be indented 6 ems from and nonprofit organization, and the value of the the left margin; (3) by adding at the end the following new contribution. (iii) by striking the matter that precedes subsection: ‘‘(2) DEFINITIONS.—For purposes of this sub- clause (i), as so redesignated, and inserting ‘‘(c) REPORTS OF FRAUDULENT FINANCIAL section— the following: TRANSACTIONS.— ‘‘(A) the term ‘designated amount’ means ‘‘(3) DEFINITION OF TOTAL ASSETS.—For pur- ‘‘(1) REQUIREMENT TO REPORT.—The Direc- such amount as may be designated by the Di- poses of this section, the term ‘total assets’ tor shall require a regulated entity to sub- rector by regulation, consistent with the means as follows: mit to the Director a timely report upon dis- public interest and the protection of inves- ‘‘(A) ENTERPRISES.—With respect to an en- covery by the regulated entity that it has tors for purposes of this subsection; and terprise, the sum of—’’; and purchased or sold a fraudulent loan or finan- ‘‘(B) the Director may, by such regulations (iv) by adding at the end the following new cial instrument or suspects a possible fraud as the Director deems necessary or appro- subparagraph: relating to a purchase or sale of any loan or priate in the public interest, define the ‘‘(B) FEDERAL HOME LOAN BANKS.—With re- financial instrument. The Director shall re- terms officer and controlling person. spect to a Federal home loan bank, the total assets of the Bank, as determined by the Di- quire the regulated entities to establish and ‘‘(3) PUBLIC AVAILABILITY.—The Director rector in accordance with generally accepted maintain procedures designed to discover shall make the information submitted pursu- accounting principles.’’; any such transactions. ant to this subsection publicly available. (3) by striking subsection (c) and inserting ‘‘(2) PROTECTION FROM LIABILITY FOR RE- ‘‘(e) DISCLOSURE OF INCOME.—Each enter- the following new subsection: PORTS.— prise shall include, in each annual report ‘‘(c) INCREASED COSTS OF REGULATION.— ‘‘(A) IN GENERAL.—If a regulated entity filed under section 13 of the Securities Ex- ‘‘(1) INCREASE FOR INADEQUATE CAPITALIZA- makes a report pursuant to paragraph (1), or change Act of 1934 (15 U.S.C. 78m), the in- TION.—The semiannual payments made pur- a regulated entity-affiliated party makes, or come reported by the issuer to the Internal suant to subsection (b) by any regulated en- requires another to make, such a report, and Revenue Service for the most recent taxable tity that is not classified (for purposes of such report is made in a good faith effort to year. Such income shall— subtitle B) as adequately capitalized may be comply with the requirements of paragraph ‘‘(1) be presented in a prominent location increased, as necessary, in the discretion of (1), such regulated entity or regulated enti- in each such report and in a manner that the Director to pay additional estimated ty-affiliated party shall not be liable to any permits a ready comparison of such income costs of regulation of the regulated entity. person under any law or regulation of the to income otherwise required to be included ‘‘(2) ADJUSTMENT FOR ENFORCEMENT ACTIVI- United States, any constitution, law, or reg- in such reports under regulations issued TIES.—The Director may adjust the amounts ulation of any State or political subdivision under such section; and of any semiannual payments for an assess- of any State, or under any contract or other ‘‘(2) be submitted to the Securities and Ex- ment under subsection (a) that are to be paid legally enforceable agreement (including any change Commission in a form and manner pursuant to subsection (b) by a regulated en- arbitration agreement), for such report or suitable for entry into the EDGAR system of tity, as necessary in the discretion of the Di- for any failure to provide notice of such re- such Commission for public availability rector, to ensure that the costs of enforce- port to the person who is the subject of such under such system.’’. ment activities under this Act for a regu- report or any other person identified in the SEC. 316. ASSESSMENTS. lated entity are borne only by such regulated report. entity. Section 1316 of the Housing and Commu- ‘‘(B) RULE OF CONSTRUCTION.—Subpara- ‘‘(3) ADDITIONAL ASSESSMENT FOR DEFI- graph (A) shall not be construed as cre- nity Development Act of 1992 (12 U.S.C. 4516) CIENCIES.—If at any time, as a result of in- ating— is amended— creased costs of regulation of a regulated en- ‘‘(i) any inference that the term ‘person’, (1) by striking subsection (a) and inserting tity that is not classified (for purposes of as used in such subparagraph, may be con- the following new subsection: subtitle B) as adequately capitalized or as strued more broadly than its ordinary usage ‘‘(a) ANNUAL ASSESSMENTS.—The Director the result of supervisory or enforcement ac- so as to include any government or agency of shall establish and collect from the regu- tivities under this Act for a regulated entity, government; or lated entities annual assessments in an the amount available from any semiannual ‘‘(ii) any immunity against, or otherwise amount not exceeding the amount sufficient payment made by such regulated entity pur- affecting, any civil or criminal action to provide for reasonable costs and expenses suant to subsection (b) is insufficient to brought by any government or agency of of the Agency, including— cover the costs of the Agency with respect to government to enforce any constitution, law, ‘‘(1) the expenses of any examinations such entity, the Director may make and col- or regulation of such government or agen- under section 1317 of this Act and under sec- lect from such regulated entity an imme- cy.’’. tion 20 of the Federal Home Loan Bank Act; diate assessment to cover the amount of SEC. 315. DISCLOSURE OF INCOME AND CHARI- ‘‘(2) the expenses of obtaining any reviews such deficiency for the semiannual period. If, TABLE CONTRIBUTIONS BY ENTER- and credit assessments under section 1319; at the end of any semiannual period during PRISES. ‘‘(3) such amounts in excess of actual ex- which such an assessment is made, any Section 1314 of the Housing and Commu- penses for any given year as deemed nec- amount remains from such assessment, such nity Development Act of 1992 (12 U.S.C. 4514), essary by the Director to maintain a work- remaining amount shall be deducted from as amended by the preceding provisions of ing capital fund in accordance with sub- the assessment for such regulated entity for this title, is further amended by adding at section (e); and the following semiannual period.’’; the end the following new subsections: ‘‘(4) the wind up of the affairs of the Office (4) in subsection (d), by striking ‘‘If’’ and ‘‘(d) DISCLOSURE OF CHARITABLE CONTRIBU- of Federal Housing Enterprise Oversight and inserting ‘‘Except with respect to amounts TIONS BY ENTERPRISES.— the Federal Housing Finance Board under collected pursuant to subsection (a)(3), if’’; ‘‘(1) REQUIRED DISCLOSURE.—The Director subtitle C of the Federal Housing Finance and shall, by regulation, require each enterprise Reform Act of 2008.’’; (5) by striking subsections (e) through (g) to submit a report annually, in a format des- (2) in subsection (b)— and inserting the following new subsections:

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‘‘(e) WORKING CAPITAL FUND.—At the end of ment of income and expenses; and a state- of title 41, United States Code, professional each year for which an assessment under this ment of sources and application of funds. services of firms and organizations of cer- section is made, the Director shall remit to ‘‘(3) FINANCIAL MANAGEMENT SYSTEMS.—The tified public accountants for temporary peri- each regulated entity any amount of assess- Agency shall implement and maintain finan- ods or for special purposes. Upon the request ment collected from such regulated entity cial management systems that comply sub- of the Comptroller General, the Director of that is attributable to subsection (a)(3) and stantially with Federal financial manage- the Agency shall transfer to the Government is in excess of the amount the Director ment systems requirements, applicable Fed- Accountability Office from funds available, deems necessary to maintain a working cap- eral accounting standards, and that uses a the amount requested by the Comptroller ital fund. general ledger system that accounts for ac- General to cover the full costs of any audit ‘‘(f) TREATMENT OF ASSESSMENTS.— tivity at the transaction level. and report conducted by the Comptroller ‘‘(1) DEPOSIT.—Amounts received by the ‘‘(4) ASSERTION OF INTERNAL CONTROLS.— General. The Comptroller General shall cred- Director from assessments under this section The Director shall provide to the Comp- it funds transferred to the account estab- may be deposited by the Director in the troller General an assertion as to the effec- lished for salaries and expenses of the Gov- manner provided in section 5234 of the Re- tiveness of the internal controls that apply ernment Accountability Office, and such vised Statutes (12 U.S.C. 192) for monies de- to financial reporting by the Agency, using amount shall be available upon receipt and posited by the Comptroller of the Currency. the standards established in section 3512(c) of without fiscal year limitation to cover the ‘‘(2) NOT GOVERNMENT FUNDS.—The title 31, United States Code. full costs of the audit and report.’’. amounts received by the Director from any ‘‘(5) RULE OF CONSTRUCTION.—This sub- SEC. 317. EXAMINERS AND ACCOUNTANTS. assessment under this section shall not be section may not be construed as implying (a) EXAMINATIONS.—Section 1317 of the construed to be Government or public funds any obligation on the part of the Director to Housing and Community Development Act of or appropriated money. consult with or obtain the consent or ap- 1992 (12 U.S.C. 4517) is amended— ‘‘(3) NO APPORTIONMENT OF FUNDS.—Not- proval of the Director of the Office of Man- (1) in subsection (a), by adding after the pe- withstanding any other provision of law, the agement and Budget with respect to any re- riod at the end the following: ‘‘Each exam- amounts received by the Director from any ports, plans, forecasts, or other information ination under this subsection of a regulated assessment under this section shall not be referred to in paragraph (1) or any jurisdic- entity shall include a review of the proce- subject to apportionment for the purpose of tion or oversight over the affairs or oper- dures required to be established and main- chapter 15 of title 31, United States Code, or ations of the Agency. tained by the regulated entity pursuant to under any other authority. ‘‘(h) AUDIT OF AGENCY.— section 1314(c) (relating to fraudulent finan- ‘‘(4) USE OF FUNDS.—The Director may use ‘‘(1) IN GENERAL.—The Comptroller General cial transactions) and the report regarding any amounts received by the Director from shall annually audit the financial trans- each such examination shall describe any assessments under this section for compensa- actions of the Agency in accordance with the problems with such procedures maintained tion of the Director and other employees of U.S. generally accepted government auditing by the regulated entity.’’; the Agency and for all other expenses of the standards as may be prescribed by the Comp- (2) in subsection (b)— Director and the Agency. troller General of the United States. The (A) by inserting ‘‘of a regulated entity’’ ‘‘(5) AVAILABILITY OF OVERSIGHT FUND audit shall be conducted at the place or after ‘‘under this section’’; and AMOUNTS.—Notwithstanding any other provi- places where accounts of the Agency are nor- (B) by striking ‘‘to determine the condi- sion of law, any amounts remaining in the mally kept. The representatives of the Gov- tion of an enterprise for the purpose of en- Federal Housing Enterprises Oversight Fund ernment Accountability Office shall have ac- suring its financial safety and soundness’’ established under this section (as in effect cess to the personnel and to all books, ac- and inserting ‘‘or appropriate’’; and before the effective date under section 365 of counts, documents, papers, records (includ- (3) in subsection (c)— the Federal Housing Finance Reform Act of ing electronic records), reports, files, and all (A) in the second sentence, by inserting 2008), and any amounts remaining from as- other papers, automated data, things, or ‘‘to conduct examinations under this sec- sessments on the Federal Home Loan banks property belonging to or under the control of tion’’ before the period; and pursuant to section 18(b) of the Federal or used or employed by the Agency per- (B) in the third sentence, by striking Home Loan Bank Act (12 U.S.C. 1438(b)), taining to its financial transactions and nec- ‘‘from amounts available in the Federal shall, upon such effective date, be treated for essary to facilitate the audit, and such rep- Housing Enterprises Oversight Fund’’. purposes of this subsection as amounts re- resentatives shall be afforded full facilities (b) ENHANCED AUTHORITY TO HIRE EXAM- ceived from assessments under this section. for verifying transactions with the balances INERS AND ACCOUNTANTS.—Section 1317 of the ‘‘(6) TREASURY INVESTMENTS.— or securities held by depositories, fiscal Housing and Community Development Act of ‘‘(A) AUTHORITY.—The Director may re- agents, and custodians. All such books, ac- 1992 (12 U.S.C. 4517) is amended by adding at quest the Secretary of the Treasury to invest counts, documents, records, reports, files, the end the following new subsection: such portions of amount received by the Di- papers, and property of the Agency shall re- ‘‘(g) APPOINTMENT OF ACCOUNTANTS, ECONO- rector from assessments paid under this sec- main in possession and custody of the Agen- MISTS, SPECIALISTS, AND EXAMINERS.— tion that, in the Director’s discretion, are cy. The Comptroller General may obtain and ‘‘(1) APPLICABILITY.—This section applies not required to meet the current working duplicate any such books, accounts, docu- with respect to any position of examiner, ac- needs of the Agency. ments, records, working papers, automated countant, specialist in financial markets, ‘‘(B) GOVERNMENT OBLIGATIONS.—Pursuant data and files, or other information relevant specialist in information technology, and to a request under subparagraph (A), the to such audit without cost to the Comp- economist at the Agency, with respect to su- Secretary of the Treasury shall invest such troller General and the Comptroller Gen- pervision and regulation of the regulated en- amounts in government obligations guaran- eral’s right of access to such information tities, that is in the competitive service. teed as to principal and interest by the shall be enforceable pursuant to section ‘‘(2) APPOINTMENT AUTHORITY.—The Direc- United States with maturities suitable to 716(c) of title 31, United States Code. tor may appoint candidates to any position the needs of Agency and bearing interest at ‘‘(2) REPORT.—The Comptroller General described in paragraph (1)— a rate determined by the Secretary of the shall submit to the Congress a report of each ‘‘(A) in accordance with the statutes, rules, Treasury taking into consideration current annual audit conducted under this sub- and regulations governing appointments in market yields on outstanding marketable section. The report to the Congress shall set the excepted service; and obligations of the United States of com- forth the scope of the audit and shall include ‘‘(B) notwithstanding any statutes, rules, parable maturity. the statement of assets and liabilities and and regulations governing appointments in ‘‘(g) BUDGET AND FINANCIAL MANAGE- surplus or deficit, the statement of income the competitive service. MENT.— and expenses, the statement of sources and ‘‘(3) RULE OF CONSTRUCTION.—The appoint- ‘‘(1) FINANCIAL OPERATING PLANS AND FORE- application of funds, and such comments and ment of a candidate to a position under the CASTS.—The Director shall provide to the Di- information as may be deemed necessary to authority of this subsection shall not be con- rector of the Office of Management and inform Congress of the financial operations sidered to cause such position to be con- Budget copies of the Director’s financial op- and condition of the Agency, together with verted from the competitive service to the erating plans and forecasts as prepared by such recommendations with respect thereto excepted service.’’. the Director in the ordinary course of the as the Comptroller General may deem advis- (c) REPEAL.—Section 20 of the Federal Agency’s operations, and copies of the quar- able. A copy of each report shall be furnished Home Loan Bank Act (12 U.S.C. 1440) is terly reports of the Agency’s financial condi- to the President and to the Agency at the amended— tion and results of operations as prepared by time submitted to the Congress. (1) by striking the section heading and in- the Director in the ordinary course of the ‘‘(3) ASSISTANCE AND COSTS.—For the pur- serting the following: ‘‘EXAMINATIONS AND Agency’s operations. pose of conducting an audit under this sub- GAO AUDITS’’; ‘‘(2) FINANCIAL STATEMENTS.—The Agency section, the Comptroller General may, in the (2) in the third sentence, by striking ‘‘the shall prepare annually a statement of assets discretion of the Comptroller General, em- Board and’’ each place such term appears; and liabilities and surplus or deficit; a state- ploy by contract, without regard to section 5 and

VerDate Mar 15 2010 15:08 Nov 08, 2010 Jkt 069102 PO 00000 Frm 00048 Fmt 0688 Sfmt 0634 E:\BR08\H08MY8.002 H08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD 8192 CONGRESSIONAL RECORD—HOUSE, Vol. 154, Pt. 6 May 8, 2008 (3) by striking the first two sentences and being reviewed under section 1318 of the Fed- that require the services of investment bank- inserting the following: ‘‘The Federal home eral Housing Enterprises Financial Safety ing, asset management entities, broker-deal- loan banks shall be subject to examinations and Soundness Act of 1992 (12 U.S.C. 4518).’’. ers, financial services entities, underwriters, by the Director to the extent provided in sec- SEC. 319. REVIEWS OF REGULATED ENTITIES. accountants, investment consultants, and tion 1317 of the Federal Housing Enterprises Section 1319 of the Housing and Commu- providers of legal services. Financial Safety and Soundness Act of 1992 nity Development Act of 1992 (12 U.S.C. 4519) ‘‘(d) INCLUSION IN ANNUAL REPORTS.—Each (12 U.S.C. 4517).’’. is amended— regulated entity shall include, in the annual SEC. 318. PROHIBITION AND WITHHOLDING OF (1) by striking the section designation and report submitted by the entity to the Direc- EXECUTIVE COMPENSATION. heading and inserting the following: tor pursuant to section 309(k) of the Federal (a) IN GENERAL.—Section 1318 of the Hous- ‘‘SEC. 1319. REVIEWS OF REGULATED ENTITIES.’’; National Mortgage Association Charter Act ing and Community Development Act of 1992 and (12 U.S.C. 1723a(k)), section 307(c) of the Fed- (12 U.S.C. 4518) is amended— (2) by striking ‘‘is a nationally recognized’’ eral Home Loan Mortgage Corporation Act (1) in the section heading, by striking ‘‘OF and all that follows through ‘‘1934’’ and in- (12 U.S.C. 1456(c)), and section 20 of the Fed- EXCESSIVE’’ and inserting ‘‘AND WITH- serting the following: ‘‘the Director con- eral Home Loan Bank Act (12 U.S.C. 1440), as HOLDING OF EXECUTIVE’’; siders appropriate, including an entity that applicable, detailed information describing (2) by redesignating subsection (b) as sub- is registered under section 15 of the Securi- the actions taken by the entity pursuant to section (d); and ties Exchange Act of 1934 (15 U.S.C. 78a) as a this section, which shall include a statement (3) by inserting after subsection (a) the fol- nationally registered statistical rating orga- of the total amounts paid by the entity to lowing new subsections: nization’’. third party contractors since the last such ‘‘(b) FACTORS.—In making any determina- SEC. 320. INCLUSION OF MINORITIES AND report and the percentage of such amounts tion under subsection (a), the Director may WOMEN; DIVERSITY IN AGENCY paid to businesses described in subsection (b) take into consideration any factors the Di- WORKFORCE. of this section.’’; and rector considers relevant, including any Section 1319A of the Housing and Commu- (5) by adding at the end the following new wrongdoing on the part of the executive offi- nity Development Act of 1992 (12 U.S.C. 4520) subsection: cer, and such wrongdoing shall include any is amended— ‘‘(f) DIVERSITY IN AGENCY WORKFORCE.— fraudulent act or omission, breach of trust (1) in the section heading, by striking The Agency shall take affirmative steps to or fiduciary duty, violation of law, rule, reg- ‘‘EQUAL OPPORTUNITY IN SOLICITATION seek diversity in its workforce at all levels ulation, order, or written agreement, and in- OF CONTRACTS’’ and inserting ‘‘MINORITY of the agency consistent with the demo- sider abuse with respect to the regulated en- AND WOMEN INCLUSION; DIVERSITY RE- graphic diversity of the United States, which tity. The approval of an agreement or con- QUIREMENTS’’; shall include— tract pursuant to section 309(d)(3)(B) of the (2) in subsection (a), by striking ‘‘(a) IN ‘‘(1) heavily recruiting at historically Federal National Mortgage Association GENERAL.—Each enterprise’’ and inserting Black colleges and universities, Hispanic- Charter Act (12 U.S.C. 1723a(d)(3)(B)) or sec- ‘‘(e) OUTREACH.—Each regulated entity’’; and serving institutions, women’s colleges, and tion 303(h)(2) of the Federal Home Loan (3) by striking subsection (b); colleges that typically serve majority minor- Mortgage Corporation Act (12 U.S.C. (4) by inserting before subsection (e), as so ity populations; 1452(h)(2)) shall not preclude the Director redesignated by paragraph (2) of this section, ‘‘(2) sponsoring and recruiting at job fairs from making any subsequent determination the following new subsections: in urban communities, and placing employ- under subsection (a). ‘‘(a) OFFICE OF MINORITY AND WOMEN INCLU- ment advertisements in newspapers and ‘‘(c) WITHHOLDING OF COMPENSATION.—In SION.—Each regulated entity shall establish magazines oriented toward women and peo- carrying out subsection (a), the Director an Office of Minority and Women Inclusion, ple of color; may require a regulated entity to withhold or designate an office of the entity, that ‘‘(3) partnering with organizations that are any payment, transfer, or disbursement of shall be responsible for carrying out this sec- focused on developing opportunities for mi- compensation to an executive officer, or to tion and all matters of the entity relating to norities and women to place talented young place such compensation in an escrow ac- diversity in management, employment, and minorities and women in industry intern- count, during the review of the reasonable- business activities in accordance with such ships, summer employment, and full-time ness and comparability of compensation.’’. standards and requirements as the Director positions; and (b) CONFORMING AMENDMENTS.— shall establish. ‘‘(4) where feasible, partnering with inner- (1) FANNIE MAE.—Section 309(d) of the Fed- ‘‘(b) INCLUSION IN ALL LEVELS OF BUSINESS city high schools, girls’ high schools, and eral National Mortgage Association Charter ACTIVITIES.—Each regulated entity shall de- high schools with majority minority popu- Act (12 U.S.C. 1723a(d)) is amended by adding velop and implement standards and proce- lations to establish or enhance financial lit- at the end the following new paragraph: dures to ensure, to the maximum extent pos- eracy programs and provide mentoring.’’. ‘‘(4) Notwithstanding any other provision sible, the inclusion and utilization of minori- SEC. 321. REGULATIONS AND ORDERS. of this section, the corporation shall not ties (as such term is defined in section 1204(c) Section 1319G of the Housing and Commu- transfer, disburse, or pay compensation to of the Financial Institutions Reform, Recov- nity Development Act of 1992 (12 U.S.C. 4526) any executive officer, or enter into an agree- ery, and Enforcement Act of 1989 (12 U.S.C. is amended— ment with such executive officer, without 1811 note)) and women, and minority- and (1) by striking subsection (a) and inserting the approval of the Director, for matters women-owned businesses (as such terms are the following new subsection: being reviewed under section 1318 of the Fed- defined in section 21A(r)(4) of the Federal ‘‘(a) AUTHORITY.—The Director shall issue eral Housing Enterprises Financial Safety Home Loan Bank Act (12 U.S.C. 1441a(r)(4)) any regulations, guidelines, and orders nec- and Soundness Act of 1992 (12 U.S.C. 4518).’’. (including financial institutions, investment essary to carry out the duties of the Director (2) FREDDIE MAC.—Section 303(h) of the banking firms, mortgage banking firms, under this title and each of the authorizing Federal Home Loan Mortgage Corporation asset management firms, broker-dealers, fi- statutes to ensure that the purposes of this Act (12 U.S.C. 1452(h)) is amended by adding nancial services firms, underwriters, ac- title and such statutes are accomplished.’’; at the end the following new paragraph: countants, brokers, investment consultants, (2) in subsection (b), by inserting ‘‘, this ‘‘(4) Notwithstanding any other provision and providers of legal services) in all busi- title, or any of the authorizing statutes’’ of this section, the Corporation shall not ness and activities of the regulated entity at after ‘‘under this section’’; and transfer, disburse, or pay compensation to all levels, including in procurement, insur- (3) by striking subsection (c). any executive officer, or enter into an agree- ance, and all types of contracts (including ment with such executive officer, without contracts for the issuance or guarantee of SEC. 322. NON-WAIVER OF PRIVILEGES. the approval of the Director, for matters any debt, equity, or mortgage-related securi- Part 1 of subtitle A of title XIII of the being reviewed under section 1318 of the Fed- ties, the management of its mortgage and se- Housing and Community Development Act of eral Housing Enterprises Financial Safety curities portfolios, the making of its equity 1992 (12 U.S.C. 4511) is amended by adding at and Soundness Act of 1992 (12 U.S.C. 4518).’’. investments, the purchase, sale and servicing the end the following new section: (3) FEDERAL HOME LOAN BANKS.—Section 7 of single- and multi-family mortgage loans, ‘‘SEC. 1319H. PRIVILEGES NOT AFFECTED BY DIS- of the Federal Home Loan Bank Act (12 and the implementation of its affordable CLOSURE. U.S.C. 1427) is amended by adding at the end housing program and initiatives). The proc- ‘‘(a) IN GENERAL.—The submission by any the following new subsection: esses established by each regulated entity person of any information to the Agency for ‘‘(l) WITHHOLDING OF COMPENSATION.—Not- for review and evaluation for contract pro- any purpose in the course of any supervisory withstanding any other provision of this sec- posals and to hire service providers shall in- or regulatory process of the Agency shall not tion, a Federal home loan bank shall not clude a component that gives consideration be construed as waiving, destroying, or oth- transfer, disburse, or pay compensation to to the diversity of the applicant. erwise affecting any privilege such person any executive officer, or enter into an agree- ‘‘(c) APPLICABILITY.—This section shall may claim with respect to such information ment with such executive officer, without apply to all contracts of a regulated entity under Federal or State law as to any person the approval of the Director, for matters for services of any kind, including services or entity other than the Agency.

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‘‘(b) RULE OF CONSTRUCTION.—No provision ‘‘(c) ESTABLISHMENT OF REVISED MINIMUM flect the difference in operations between of subsection (a) may be construed as imply- CAPITAL LEVELS.—Notwithstanding sub- the banks and the enterprises.’’. ing or establishing that— sections (a) and (b) and notwithstanding the (2) REGULATIONS.—Not later than the expi- ‘‘(1) any person waives any privilege appli- capital classifications of the regulated enti- ration of the 180-day period beginning on the cable to information that is submitted or ties, the Director may, by regulations issued effective date under section 365, the Director transferred under any circumstance to which under section 1319G, establish a minimum of the Federal Housing Finance Agency shall subsection (a) does not apply; or capital level for the enterprises, for the Fed- issue regulations pursuant to section 1363(b) ‘‘(2) any person would waive any privilege eral home loan banks, or for both the enter- of the Housing and Community Development applicable to any information by submitting prises and the banks, that is higher than the Act of 1992 (as added by paragraph (1) of this the information to the Agency, but for this level specified in subsection (a) for the enter- subsection) establishing the critical capital subsection.’’. prises or the level specified in subsection (b) level under such section. SEC. 323. RISK-BASED CAPITAL REQUIREMENTS. for the Federal home loan banks, to the ex- SEC. 325. REVIEW OF AND AUTHORITY OVER EN- (a) IN GENERAL.—Section 1361 of the Hous- tent needed to ensure that the regulated en- TERPRISE ASSETS AND LIABILITIES. ing and Community Development Act of 1992 tities operate in a safe and sound manner. (a) IN GENERAL.—Subtitle B of title XIII of (12 U.S.C. 4611) is amended to read as follows: ‘‘(d) AUTHORITY TO REQUIRE TEMPORARY IN- the Housing and Community Development ‘‘SEC. 1361. RISK-BASED CAPITAL LEVELS FOR CREASE.—Notwithstanding subsections (a) Act of 1992 (12 U.S.C. 4611 et seq.) is amend- REGULATED ENTITIES. and (b) and any minimum capital level es- ed— ‘‘(a) IN GENERAL.— tablished pursuant to subsection (c), the Di- (1) by striking the subtitle designation and ‘‘(1) ENTERPRISES.—The Director shall, by rector may, by order, increase the minimum heading and inserting the following: regulation, establish risk-based capital re- capital level for a regulated entity on a tem- ‘‘Subtitle B—Required Capital Levels for Reg- quirements for the enterprises to ensure that porary basis for such period as the Director ulated Entities, Special Enforcement Pow- the enterprises operate in a safe and sound may provide if the Director— ers, and Reviews of Assets and Liabilities’’; manner, maintaining sufficient capital and ‘‘(1) makes any determination specified in and reserves to support the risks that arise in subparagraphs (A) through (C) of section (2) by adding at the end the following new the operations and management of the enter- 1364(c)(1); section: prises. ‘‘(2) determines that the regulated entity ‘‘SEC. 1369E. REVIEWS OF ENTERPRISE ASSETS EDERAL HOME LOAN BANKS ‘‘(2) F .—The Di- has violated any of the prudential standards AND LIABILITIES. rector shall establish risk-based capital established pursuant to section 1313A and, as ‘‘(a) IN GENERAL.—The Director shall, by standards under section 6 of the Federal a result of such violation, determines that regulation, establish standards by which the Home Loan Bank Act for the Federal home an unsafe and unsound condition exists; or portfolio holdings, or rate of growth of the loan banks. ‘‘(3) determines that an unsafe and un- portfolio holdings, of the enterprises will be ‘‘(b) CONFIDENTIALITY OF INFORMATION.— sound condition exists, except that a tem- deemed to be consistent with the mission Any person that receives any book, record, porary increase in minimum capital imposed and the safe and sound operations of the en- or information from the Director or a regu- on a regulated entity pursuant to this para- terprises. In developing such standards, the lated entity to enable the risk-based capital graph shall not remain in place for a period requirements established under this section Director shall consider— of more than 6 months unless the Director ‘‘(1) the size or growth of the mortgage to be applied shall— makes a renewed determination of the exist- ‘‘(1) maintain the confidentiality of the market; ence of an unsafe and unsound condition. ‘‘(2) the need for the portfolio in maintain- book, record, or information in a manner ‘‘(e) AUTHORITY TO ESTABLISH ADDITIONAL that is generally consistent with the level of ing liquidity or stability of the secondary CAPITAL AND RESERVE REQUIREMENTS FOR mortgage market (including the market for confidentiality established for the material PARTICULAR PROGRAMS.—The Director may, by the Director or the regulated entity; and the mortgage-backed securities the enter- at any time by order or regulation, establish prises issue); ‘‘(2) be exempt from section 552 of title 5, such capital or reserve requirements with re- United States Code, with respect to the ‘‘(3) the need for an inventory of mortgages spect to any program or activity of a regu- in connection with securitizations; book, record, or information. lated entity as the Director considers appro- ‘‘(c) NO LIMITATION.—Nothing in this sec- ‘‘(4) the need for the portfolio to directly priate to ensure that the regulated entity tion shall limit the authority of the Director support the affordable housing mission of the operates in a safe and sound manner, with to require other reports or undertakings, or enterprises; sufficient capital and reserves to support the take other action, in furtherance of the re- ‘‘(5) the liquidity needs of the enterprises; risks that arise in the operations and man- sponsibilities of the Director under this ‘‘(6) any potential risks posed to the enter- Act.’’. agement of the regulated entity. prises by the nature of the portfolio hold- (b) FEDERAL HOME LOAN BANKS RISK-BASED ‘‘(f) PERIODIC REVIEW.—The Director shall ings; and CAPITAL.—Section 6(a)(3) of the Federal periodically review the amount of core cap- ‘‘(7) any additional factors that the Direc- Home Loan Bank Act (12 U.S.C. 1426(a)(3)) is ital maintained by the enterprises, the tor determines to be necessary to carry out amended— amount of capital retained by the Federal the purpose under the first sentence of this (1) by striking subparagraph (A) and in- home loan banks, and the minimum capital subsection to establish standards for assess- serting the following new subparagraph: levels established for such regulated entities ing whether the portfolio holdings are con- ‘‘(A) RISK-BASED CAPITAL STANDARDS.—The pursuant to this section. The Director shall sistent with the mission and safe and sound Director shall, by regulation, establish risk- rescind any temporary minimum capital operations of the enterprises. based capital standards for the Federal home level increase if the Director determines ‘‘(b) TEMPORARY ADJUSTMENTS.—The Direc- loan banks to ensure that the Federal home that the circumstances or facts justifying tor may, by order, make temporary adjust- loan banks operate in a safe and sound man- the temporary increase are no longer ments to the established standards for an en- ner, with sufficient permanent capital and present.’’. terprise or both enterprises, such as during reserves to support the risks that arise in (b) CRITICAL CAPITAL LEVELS.— times of economic distress or market disrup- the operations and management of the Fed- (1) IN GENERAL.—Section 1363 of the Hous- tion. eral home loans banks.’’; and ing and Community Development Act of 1992 ‘‘(c) AUTHORITY TO REQUIRE DISPOSITION OR (2) in subparagraph (B), by striking (12 U.S.C. 4613) is amended— ACQUISITION.—The Director shall monitor ‘‘(A)(ii)’’ and inserting ‘‘(A)’’. (A) by striking ‘‘For’’ and inserting ‘‘(a) the portfolio of each enterprise. Pursuant to SEC. 324. MINIMUM AND CRITICAL CAPITAL LEV- ENTERPRISES.—FOR’’; and subsection (a) and notwithstanding the cap- ELS. (B) by adding at the end the following new ital classifications of the enterprises, the Di- (a) MINIMUM CAPITAL LEVEL.—Section 1362 subsection: rector may, by order, require an enterprise, of the Housing and Community Development ‘‘(b) FEDERAL HOME LOAN BANKS.— under such terms and conditions as the Di- Act of 1992 (12 U.S.C. 4612) is amended— ‘‘(1) IN GENERAL.—For purposes of this sub- rector determines to be appropriate, to dis- (1) in subsection (a), by striking ‘‘IN GEN- title, the critical capital level for each Fed- pose of or acquire any asset, if the Director ERAL’’ and inserting ‘‘ENTERPRISES’’; and eral home loan bank shall be such amount of determines that such action is consistent (2) by striking subsection (b) and inserting capital as the Director shall, by regulation with the purposes of this Act or any of the the following new subsections: require. authorizing statutes.’’. ‘‘(b) FEDERAL HOME LOAN BANKS.—For pur- ‘‘(2) CONSIDERATION OF OTHER CRITICAL CAP- (b) REGULATIONS.—Not later than the expi- poses of this subtitle, the minimum capital ITAL LEVELS.—In establishing the critical ration of the 180-day period beginning on the level for each Federal home loan bank shall capital level under paragraph (1) for the Fed- effective date under section 365, the Director be the minimum capital required to be main- eral home loan banks, the Director shall of the Federal Housing Finance Agency shall tained to comply with the leverage require- take due consideration of the critical capital issue regulations pursuant to section ment for the bank established under section level established under subsection (a) for the 1369E(a) of the Housing and Community De- 6(a)(2) of the Federal Home Loan Bank Act enterprises, with such modifications as the velopment Act of 1992 (as added by sub- (12 U.S.C. 1426(a)(2)). Director determines to be appropriate to re- section (a) of this section) establishing the

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portfolio holdings standards under such sec- management, operational stability and legal ‘‘(g) CERTIFICATION OF DISCLOSURES.—The tion. and regulatory compliance as well; and chief executive officer and the chief financial SEC. 326. CORPORATE GOVERNANCE OF ENTER- ‘‘(E) shall be undertaken in a manner that officer of an enterprise shall review each PRISES. complies with applicable laws, rules, and quarterly report and annual report issued by The Housing and Community Development regulations. the enterprise and such reports shall include Act of 1992 is amended by inserting before ‘‘(2) REIMBURSEMENT.—If an enterprise is certifications by such officers as required by section 1323 (12 U.S.C. 4543) the following new required to prepare an accounting restate- section 302 of the Sarbanes-Oxley Act of 2002 section: ment due to the material noncompliance of (15 U.S.C. 7241). ‘‘SEC. 1322A. CORPORATE GOVERNANCE OF EN- the enterprise, as a result of misconduct, ‘‘(h) CHANGE OF AUDIT PARTNER.—An enter- TERPRISES. with any financial reporting requirement prise may not accept audit services from an ‘‘(a) BOARD OF DIRECTORS.— under the securities laws, the chief executive external auditing firm if the lead or coordi- ‘‘(1) INDEPENDENCE.—A majority of seated officer and chief financial officer of the en- nating audit partner who has primary re- members of the board of directors of each en- terprise shall reimburse the enterprise as sponsibility for the external audit of the en- terprise shall be independent board mem- provided under section 304 of the Sarbanes- terprise, or the external audit partner who bers, as defined under rules set forth by the Oxley Act of 2002 (15 U.S.C. 7243). This provi- has responsibility for reviewing the external New York Stock Exchange, as such rules sion does not otherwise limit the authority audit has performed audit services for the may be amended from time to time. of the Agency to employ remedies available enterprise in each of the five previous fiscal ‘‘(2) FREQUENCY OF MEETINGS.—To carry to it under its enforcement authorities. years. out its obligations and duties under applica- ‘‘(d) CODE OF CONDUCT AND ETHICS.— ‘‘(i) COMPLIANCE PROGRAM.— ble laws, rules, regulations, and guidelines, ‘‘(1) IN GENERAL.—An enterprise shall es- ‘‘(1) REQUIREMENT.—Each enterprise shall the board of directors of an enterprise shall tablish and administer a written code of con- establish and maintain a compliance pro- meet at least eight times a year and not less duct and ethics that is reasonably designed gram that is reasonably designed to assure than once a calendar quarter. to assure the ability of board members, exec- that the enterprise complies with applicable ‘‘(3) NON-MANAGEMENT BOARD MEMBER utive officers, and employees of the enter- laws, rules, regulations, and internal con- MEETINGS.—The non-management directors prise to discharge their duties and respon- trols. of an enterprise shall meet at regularly sibilities, on behalf of the enterprise, in an ‘‘(2) COMPLIANCE OFFICER.—The compliance scheduled executive sessions without man- objective and impartial manner, and that in- program of an enterprise shall be headed by agement participation. cludes standards required under section 406 a compliance officer, however styled, who re- ‘‘(4) QUORUM; PROHIBITION ON PROXIES.—For of the Sarbanes-Oxley Act of 2002 (15 U.S.C. ports directly to the chief executive officer the transaction of business, a quorum of the 7264) and other applicable laws, rules, and of the enterprise. The compliance officer board of directors of an enterprise shall be at regulations. shall report regularly to the board of direc- least a majority of the seated board of direc- ‘‘(2) REVIEW.—Not less than once every tors or an appropriate committee of the tors and a board member may not vote by three years, an enterprise shall review the board of directors on compliance with and proxy. adequacy of its code of conduct and ethics the adequacy of current compliance policies ‘‘(5) INFORMATION.—The management of an for consistency with practices appropriate to and procedures of the enterprise, and shall enterprise shall provide a board member of the enterprise and make any appropriate re- recommend any adjustments to such policies the enterprise with such adequate and appro- visions to such code. and procedures that the compliance officer priate information that a reasonable board ‘‘(e) CONDUCT AND RESPONSIBILITIES OF considers necessary and appropriate. member would find important to the fulfill- BOARD OF DIRECTORS.—The board of directors ‘‘(j) RISK MANAGEMENT PROGRAM.— ment of his or her fiduciary duties and obli- of an enterprise shall be responsible for di- ‘‘(1) REQUIREMENT.—Each enterprise shall gations. recting the conduct and affairs of the enter- establish and maintain a risk management ‘‘(6) ANNUAL REVIEW.—At least annually, prise in furtherance of the safe and sound op- program that is reasonably designed to man- the board of directors of each enterprise eration of the enterprise and shall remain age the risks of the operations of the enter- shall review, with appropriate professional reasonably informed of the condition, activi- prise. assistance, the requirements of laws, rules, ties, and operations of the enterprise. The re- ‘‘(2) RISK MANAGEMENT OFFICER.—The risk regulations, and guidelines that are applica- sponsibilities of the board of directors shall management program of an enterprise shall ble to its activities and duties. include having in place adequate policies and be headed by a risk management officer, ‘‘(b) COMMITTEES OF BOARDS OF DIREC- procedures to assure its oversight of, among however styled, who reports directly to the TORS.— other matters, the following: chief executive officer of the enterprise. The ‘‘(1) FREQUENCY OF MEETINGS.—Any com- ‘‘(1) Corporate strategy, major plans of ac- risk management officer shall report regu- mittee of the board of directors of an enter- tion, risk policy, programs for legal and reg- larly to the board of directors or an appro- prise shall meet with sufficient frequency to ulatory compliance and corporate perform- priate committee of the board of directors on carry out its obligations and duties under ance, including prudent plans for growth and compliance with and the adequacy of current applicable laws, rules, regulations, and allocation of adequate resources to manage risk management policies and procedures of guidelines. operations risk. the enterprise, and shall recommend any ad- ‘‘(2) REQUIRED COMMITTEES.—Each enter- ‘‘(2) Hiring and retention of qualified exec- justments to such policies and procedures prise shall provide for the establishment, utive officers and succession planning for that the risk management officer considers however styled, of the following committees such executive officers. necessary and appropriate. of the board of directors: ‘‘(3) Compensation programs of the enter- ‘‘(k) COMPLIANCE WITH OTHER LAWS.— ‘‘(A) Audit committee. prise. ‘‘(1) DEREGISTERED OR UNREGISTERED COM- ‘‘(B) Compensation committee. ‘‘(4) Integrity of accounting and financial MON STOCK.—If an enterprise deregisters or ‘‘(C) Nominating/corporate governance reporting systems of the enterprise, includ- has not registered its common stock with committee. ing independent audits and systems of inter- the Securities and Exchange Commission Such committees shall be in compliance nal control. under the Securities Exchange Act of 1934, with the charter, independence, composition, ‘‘(5) Process and adequacy of reporting, dis- the enterprise shall comply or continue to expertise, duties, responsibilities, and other closures, and communications to share- comply with sections 10A(m) and 13(k) of the requirements set forth under section 10A(m) holders, investors, and potential investors. Securities Exchange Act of 1934 (15 U.S.C. of the Securities Exchange Act of 1934 (15 ‘‘(6) Extensions of credit to board members 78j–1(m), 78m(k)) and sections 302, 304, and U.S.C. 78j–1(m)), with respect to the audit and executive officers. 406 of the Sarbanes-Oxley Act of 2002 (15 committee, and under rules issued by the ‘‘(7) Responsiveness of executive officers in U.S.C. 7241, 7243, 7264), subject to such re- New York Stock Exchange, as such rules providing accurate and timely reports to quirements as provided by subsection (l) of may be amended from time to time. Federal regulators and in addressing the su- this section. ‘‘(c) COMPENSATION.— pervisory concerns of Federal regulators in a ‘‘(2) REGISTERED COMMON STOCK.—An enter- ‘‘(1) IN GENERAL.—The compensation of timely and appropriate manner. prise that has its common stock registered board members, executive officers, and em- ‘‘(f) PROHIBITION OF EXTENSIONS OF CRED- with the Securities and Exchange Commis- ployees of an enterprise— IT.—An enterprise may not directly or indi- sion shall maintain such registered status, ‘‘(A) shall not be in excess of that which is rectly, including through any subsidiary, ex- unless it provides 60 days prior written no- reasonable and appropriate; tend or maintain credit, arrange for the ex- tice to the Director stating its intent to ‘‘(B) shall be commensurate with the du- tension of credit, or renew an extension of deregister and its understanding that it will ties and responsibilities of such persons; credit, in the form of a personal loan to or remain subject to the requirements of the ‘‘(C) shall be consistent with the long-term for any board member or executive officer of sections of the Securities Exchange Act of goals of the enterprise; the enterprise, as provided by section 13(k) of 1934 and the Sarbanes-Oxley Act of 2002, sub- ‘‘(D) shall not focus solely on earnings per- the Securities Exchange Act of 1934 (15 ject to such requirements as provided by sub- formance, but shall take into account risk U.S.C. 78m(k)). section (l) of this section.

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‘‘(l) OTHER MATTERS.—The Director may (3) the total costs incurred by the enter- (C) section 309(k)(1); and from time to time establish standards, by prises for providing guarantees; (2) in section 309— regulation, order, or guideline, regarding (4) the average guarantee fee charged by (A) in subsections (d)(3)(A) and (n)(1), by such other corporate governance matters of the enterprises; striking ‘‘Banking, Finance and Urban Af- the enterprises as the Director considers ap- (5) an analysis of how and why the guar- fairs’’ each place such term appears and in- propriate. antee fees charged differ from such fees serting ‘‘Financial Services’’; and ‘‘(m) MODIFICATION OF STANDARDS.—In con- charged during the previous year; (B) in subsection (m)— nection with standards of Federal or State (6) a breakdown of the revenue and costs (i) in paragraph (1), by striking ‘‘Sec- law (including the Revised Model Corpora- associated with providing guarantees, based retary’’ the second place such term appears tion Act) or New York Stock Exchange rules on product type and risk classifications; and and inserting ‘‘Director’’; that are made applicable to an enterprise by (7) other relevant information on guar- (ii) in paragraph (2), by striking ‘‘Sec- section 1710.10 of the Director’s rules (12 CFR antee fees with other participants in the retary’’ the second place such term appears 1710.10) and by subsections (a), (b), (g), (i), (j), mortgage and securitization business. and inserting ‘‘Director’’; and and (k) of this section, the Director, in the (d) PROTECTION OF INFORMATION.—Nothing (iii) by striking ‘‘Secretary’’ each other Director’s sole discretion, may modify the in this section may be construed to require place such term appears and inserting ‘‘Di- standards contained in this section or in part or authorize the Director of the Federal rector of the Federal Housing Finance Agen- 1710 of the Director’s rules (12 CFR Part 1710) Housing Finance Agency, in connection with cy’’; and in accordance with section 553 of title 5, the study mandated by this section, to dis- (C) in subsection (n), by striking ‘‘Sec- United States Code, and upon written notice close information of the enterprises or other retary’’ each place such term appears and in- to the enterprise.’’. organization that is confidential or propri- serting ‘‘Director of the Federal Housing Fi- SEC. 327. REQUIRED REGISTRATION UNDER SE- etary. nance Agency’’. CURITIES EXCHANGE ACT OF 1934. (e) EFFECTIVE DATE.—This section shall (c) AMENDMENTS TO FREDDIE MAC ACT.— The Housing and Community Development take effect on the date of the enactment of The Federal Home Loan Mortgage Corpora- Act of 1992 is amended by adding after sec- this Act. tion Act is amended— tion 1322A, as added by the preceding provi- SEC. 330. CONFORMING AMENDMENTS. (1) by striking ‘‘Director of the Office of sions of this title, the following new section: (a) 1992 ACT.—Part 1 of subtitle A of title Federal Housing Enterprise Oversight of the ‘‘SEC. 1322B. REQUIRED REGISTRATION UNDER XIII of the Housing and Community Develop- Department of Housing and Urban Develop- SECURITIES EXCHANGE ACT OF 1934. ment Act of 1992 (12 U.S.C. 4511 et seq.), as ment’’ each place such term appears, and in- ‘‘(a) IN GENERAL.—Each regulated entity amended by the preceding provisions of this serting ‘‘Director of the Federal Housing Fi- shall register at least one class of the capital title, is further amended— nance Agency’’, in— stock of such regulated entity, and maintain (1) by striking ‘‘an enterprise’’ each place (A) section 303(b)(2) (12 U.S.C. 1452(b)(2)); such registration with the Securities and Ex- such term appears in such part (except in (B) section 303(h)(2) (12 U.S.C. 1452(h)(2)); change Commission, under the Securities sections 1313(a)(2)(A), 1313A(b)(2)(B)(ii)(I), and Exchange Act of 1934. and 1316(b)(3)) and inserting ‘‘a regulated en- (C) section 307(c)(1) (12 U.S.C. 1456(c)(1)); ‘‘(b) ENTERPRISES.—Each enterprise shall tity’’; (2) in sections 303(h)(1) and 307(f)(1) (12 comply with sections 14 and 16 of the Securi- (2) by striking ‘‘the enterprise’’ each place U.S.C. 1452(h)(1), 1456(f)(1)), by striking ties Exchange Act of 1934.’’. such term appears in such part (except in ‘‘Banking, Finance and Urban Affairs’’ each SEC. 328. LIAISON WITH FINANCIAL INSTITU- section 1316(b)(3)) and inserting ‘‘the regu- place such term appears and inserting ‘‘Fi- TIONS EXAMINATION COUNCIL. lated entity’’; nancial Services’’; Section 1007 of the Federal Financial Insti- (3) by striking ‘‘the enterprises’’ each place (3) in section 306(i) (12 U.S.C. 1455(i))— tutions Examination Council Act of 1978 (12 such term appears in such part (except in (A) by striking ‘‘1316(c)’’ and inserting U.S.C. 3306) is amended— sections 1312(c)(2), and 1312(e)(2)) and insert- ‘‘306(c)’’; and (1) in the section heading, by inserting ing ‘‘the regulated entities’’; (B) by striking ‘‘section 106’’ and inserting after ‘‘STATE’’ the following: ‘‘AND FEDERAL (4) by striking ‘‘each enterprise’’ each ‘‘section 1316’’; and HOUSING FINANCE AGENCY’’; and place such term appears in such part and in- (4) in section 307 (12 U.S.C. 1456))— (2) by inserting after ‘‘financial institu- serting ‘‘each regulated entity’’; (A) in subsection (e)— tions’’ the following: ‘‘, and one representa- (5) by striking ‘‘Office’’ each place such (i) in paragraph (1), by striking ‘‘Sec- tive of the Federal Housing Finance Agen- term appears in such part (except in sections retary’’ the second place such term appears cy,’’. 1311(b)(2), 1312(b)(5), 1315(b), and 1316(a)(4), and inserting ‘‘Director’’; SEC. 329. GUARANTEE FEE STUDY. (g), and (h), 1317(c), and 1319A(a)) and insert- (ii) in paragraph (2), by striking ‘‘Sec- (a) IN GENERAL.—The Director of the Fed- ing ‘‘Agency’’; retary’’ the second place such term appears eral Housing Finance Agency, in consulta- (6) in section 1315 (12 U.S.C. 4515)— and inserting ‘‘Director’’; and tion with the heads of the federal banking (A) in subsection (a)— (iii) by striking ‘‘Secretary’’ each other agencies, shall, not later than 18 months (i) in the subsection heading, by striking place such term appears and inserting ‘‘Di- after the date of the enactment of this Act, ‘‘OFFICE PERSONNEL’’ and inserting ‘‘IN GEN- rector of the Federal Housing Finance Agen- submit to the Congress a study concerning ERAL’’; and cy’’; and the pricing, transparency and reporting of (ii) by striking ‘‘The’’ and inserting ‘‘Sub- (B) in subsection (f), by striking ‘‘Sec- the Federal National Mortgage Association, ject to subtitle C of the Federal Housing Fi- retary’’ each place such term appears and in- the Federal Home Loan Mortgage Corpora- nance Reform Act of 2008, the’’; serting ‘‘Director of the Federal Housing Fi- tion, and the Federal home loan banks with (B) by striking subsections (d) and (f); and nance Agency’’. regard to guarantee fees and concerning (C) by redesignating subsection (e) as sub- analogous practices, transparency and re- section (d); CHAPTER 2—IMPROVEMENT OF MISSION porting requirements (including advances (7) in section 1319B (12 U.S.C. 4521), by SUPERVISION pricing practices by the Federal Home Loan striking ‘‘Committee on Banking, Finance SEC. 331. TRANSFER OF PRODUCT APPROVAL Banks) of other participants in the business and Urban Affairs’’ each place such term ap- AND HOUSING GOAL OVERSIGHT. of mortgage purchases and securitization. pears and inserting ‘‘Committee on Finan- Part 2 of subtitle A of title XIII of the (b) FACTORS.—The study required by this cial Services’’; and Housing and Community Development Act of section shall examine various factors such as (8) in section 1319F (12 U.S.C. 4525), striking 1992 (12 U.S.C. 4541 et seq.) is amended— credit risk, counterparty risk consider- all that follows ‘‘United States Code’’ and in- (1) by striking the designation and heading ations, economic value considerations, and serting ‘‘, the Agency shall be considered an for the part and inserting the following: volume considerations used by the regulated agency responsible for the regulation or su- ‘‘PART 2—PRODUCT APPROVAL BY DIREC- entities (as such term is defined in section pervision of financial institutions.’’. TOR, CORPORATE GOVERNANCE, AND 1303 of the Housing and Community Develop- (b) AMENDMENTS TO FANNIE MAE CHARTER ESTABLISHMENT OF HOUSING GOALS’’; ment Act of 1992) included in the study in ACT.—The Federal National Mortgage Asso- and setting the amount of fees they charge. ciation Charter Act (12 U.S.C. 1716 et seq.) is (2) by striking sections 1321 and 1322. (c) CONTENTS OF REPORT.—The report re- amended— SEC. 332. REVIEW OF ENTERPRISE PRODUCTS. quired under subsection (a) shall identify and (1) by striking ‘‘Director of the Office of (a) IN GENERAL.—Part 2 of subtitle A of analyze— Federal Housing Enterprise Oversight of the title XIII of the Housing and Community De- (1) the factors used by each enterprise (as Department of Housing and Urban Develop- velopment Act of 1992 is amended by insert- such term is defined in section 1303 of the ment’’ each place such term appears, and in- ing before section 1323 (12 U.S.C. 4543) the fol- Housing and Community Development Act of serting ‘‘Director of the Federal Housing Fi- lowing new section: 1992) in determining the amount of the guar- nance Agency’’, in— ‘‘SEC. 1321. PRIOR APPROVAL AUTHORITY FOR antee fees it charges; (A) section 303(c)(2) (12 U.S.C. 1718(c)(2)); PRODUCTS OF ENTERPRISES. (2) the total revenue the enterprises earn (B) section 309(d)(3)(B) (12 U.S.C. ‘‘(a) IN GENERAL.—The Director shall re- from guarantee fees; 1723a(d)(3)(B)); and quire each enterprise to obtain the approval

VerDate Mar 15 2010 15:08 Nov 08, 2010 Jkt 069102 PO 00000 Frm 00052 Fmt 0688 Sfmt 0634 E:\BR08\H08MY8.002 H08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD 8196 CONGRESSIONAL RECORD—HOUSE, Vol. 154, Pt. 6 May 8, 2008 of the Director for any product of the enter- proval of the product pursuant to subsection (3) in the 4th sentence, by striking ‘‘the prise before initially offering the product. (c). Resolution Trust Corporation,’’; ‘‘(b) STANDARD FOR APPROVAL.—In consid- ‘‘(e) CONDITIONAL APPROVAL.—The Director (4) by striking the 7th and 8th sentences ering any request for approval of a product may conditionally approve the offering of and inserting the following new sentences: pursuant to subsection (a), the Director shall any product by an enterprise, and may estab- ‘‘For 2008, such limitations shall not exceed make a determination that— lish terms, conditions, or limitations with $417,000 for a mortgage secured by a single- ‘‘(1) in the case of a product of the Federal respect to such product with which the en- family residence, $533,850 for a mortgage se- National Mortgage Association, the Director terprise must comply in order to offer such cured by a 2-family residence, $645,300 for a determines that the product is authorized product. mortgage secured by a 3-family residence, under paragraph (2), (3), (4), or (5) of section ‘‘(f) DEFINITION OF PRODUCT.—For purposes and $801,950 for a mortgage secured by a 4- 302(b) or section 304 of the Federal National of this section, the term ‘product’ does not family residence, except that such maximum Mortgage Association Charter Act, (12 U.S.C. include— limitations shall be adjusted effective Janu- 1717(b), 1719); ‘‘(1) the automated loan underwriting sys- ary 1 of each year beginning with 2009, sub- ‘‘(2) in the case of a product of the Federal tem of an enterprise in existence as of the ject to the limitations in this paragraph. Home Loan Mortgage Corporation, the Di- date of the enactment of the Federal Hous- Each adjustment shall be made by adding to rector determines that the product is au- ing Finance Reform Act of 2008, including or subtracting from each such amount (as it thorized under paragraph (1), (4), or (5) of any upgrade to the technology, operating may have been previously adjusted) a per- section 305(a) of the Federal Home Loan system, or software to operate the under- centage thereof equal to the percentage in- Mortgage Corporation Act (12 U.S.C. 1454(a)); writing system; or crease or decrease, during the most recent ‘‘(3) the product is in the public interest; ‘‘(2) any modification to the mortgage 12-month or four-quarter period ending be- ‘‘(4) the product is consistent with the terms and conditions or mortgage under- fore the time of determining such annual ad- safety and soundness of the enterprise or the writing criteria relating to the mortgages justment, in the housing price index main- mortgage finance system; and that are purchased or guaranteed by an en- tained by the Director of the Federal Hous- ‘‘(5) the product does not materially impair terprise: Provided, That such modifications ing Finance Agency (pursuant to section 1322 the efficiency of the mortgage finance sys- do not alter the underlying transaction so as of the Housing and Community Development tem. to include services or financing, other than Act of 1992 (12 U.S.C. 4541)).’’. ‘‘(c) PROCEDURE FOR APPROVAL.— residential mortgage financing, or create (5) by inserting ‘‘(A)’’ after ‘‘(2)’’; and ‘‘(1) SUBMISSION OF REQUEST.—An enter- significant new exposure to risk for the en- prise shall submit to the Director a written (6) by adding at the end the following new terprise or the holder of the mortgage. request for approval of a product that de- subparagraph: ‘‘(g) NO LIMITATION.—Nothing in this sec- scribes the product in such form as pre- ‘‘(B)(i) Notwithstanding subparagraph (A), tion shall be deemed to restrict— scribed by order or regulation of the Direc- ‘‘(1) the safety and soundness authority of for mortgages originated on or after January tor. the Director over all new and existing prod- 1, 2009, the limitation on the maximum origi- ‘‘(2) REQUEST FOR PUBLIC COMMENT.—Imme- ucts or activities; or nal principal obligation of a mortgage that diately upon receipt of a request for approval ‘‘(2) the authority of the Director to review may be purchased by the corporation shall of a product, as required under paragraph (1), all new and existing products or activities to be the higher of— the Director shall publish notice of such re- determine that such products or activities ‘‘(I) the limitation determined under sub- quest and of the period for public comment are consistent with the statutory mission of paragraph (A) for a residence of the applica- pursuant to paragraph (3) regarding the ble size; or product, and a description of the product the enterprise.’’. (b) CONFORMING AMENDMENTS.— ‘‘(II) 125 percent of the area median price proposed by the request. The Director shall (1) FANNIE MAE.—Section 302(b)(6) of the for a residence of the applicable size, but in give interested parties the opportunity to re- no case to exceed 175 percent of the limita- spond in writing to the proposed product. Federal National Mortgage Association Charter Act (12 U.S.C. 1717(b)(6)) is amend- tion determined under subparagraph (A) for ‘‘(3) PUBLIC COMMENT PERIOD.—During the a residence of the applicable size. 30-day period beginning on the date of publi- ed— cation pursuant to paragraph (2) of a request (A) by striking ‘‘implement any new pro- ‘‘(ii) The areas and area median prices used for approval of a product, the Director shall gram’’ and inserting ‘‘initially offer any for purposes of the determination under this receive public comments regarding the pro- product’’; subparagraph shall be the areas and area me- posed product. (B) by striking ‘‘section 1303’’ and inserting dian prices used by the Secretary of Housing ‘‘section 1321(f)’’; and ‘‘(4) OFFERING OF PRODUCT.— and Urban Development in determining the (C) by striking ‘‘before obtaining the ap- ‘‘(A) IN GENERAL.—Not later than 30 days applicable limits under section 203(b)(2) of proval of the Secretary under section 1322’’ after the close of the public comment period the National Housing Act (12 U.S.C. and inserting ‘‘except in accordance with described in paragraph (3), the Director shall 1709(b)(2)). A mortgage that is eligible for section 1321’’. approve or deny the product, specifying the purchase by the corporation at the time the (2) FREDDIE MAC.—Section 305(c) of the grounds for such decision in writing. mortgage is originated under this subpara- ‘‘(B) FAILURE TO ACT.—If the Director fails Federal Home Loan Mortgage Corporation Act (12 U.S.C. 1454(c)) is amended— graph shall be eligible for such purchase for to act within the 30-day period described in the duration of the term of the mortgage.’’. subparagraph (A), the enterprise may offer (A) by striking ‘‘implement any new pro- the product. gram’’ and inserting ‘‘initially offer any (b) FREDDIE MAC.—Section 305(a)(2) of the ‘‘(d) EXPEDITED REVIEW.— product’’; Federal Home Loan Mortgage Corporation ‘‘(1) DETERMINATION AND NOTICE.—If an en- (B) by striking ‘‘section 1303’’ and inserting Act (12 U.S.C. 1454(a)(2)) is amended— terprise determines that any new activity, ‘‘section 1321(f)’’; and (1) in the first sentence, by redesignating service, undertaking, or offering is not a (C) by striking ‘‘before obtaining the ap- clause (A) through (C) as clauses (i) through product, as defined in subsection (f), the en- proval of the Secretary under section 1322’’ (iii), respectively; terprise shall provide written notice to the and inserting ‘‘except in accordance with (2) in the second sentence, by striking Director prior to the commencement of such section 1321’’. ‘‘clause (A)’’ and inserting ‘‘clause (i)’’; activity, service, undertaking, or offering. (3) 1992 ACT.—Section 1303 of the Housing (3) in the third sentence by striking ‘‘the ‘‘(2) DIRECTOR DETERMINATION OF APPLICA- and Community Development Act of 1992 (12 Resolution Trust Corporation’’; BLE PROCEDURE.—Immediately upon receipt U.S.C. 4502), as amended by the preceding (4) by striking the 6th and 7th sentence and of any notice pursuant to paragraph (1), the provisions of this title, is further amended— inserting the following new sentences: ‘‘For Director shall make a determination under (A) by striking paragraph (17) (relating to 2008, such limitations shall not exceed paragraph (3). the definition of ‘‘new program’’); and $417,000 for a mortgage secured by a single- ‘‘(3) DETERMINATION AND TREATMENT AS (B) by redesignating paragraphs (18) family residence, $533,850 for a mortgage se- PRODUCT.—If the Director determines that through (23) as paragraphs (17) through (22), cured by a 2-family residence, $645,300 for a any new activity, service, undertaking, or of- respectively. mortgage secured by a 3-family residence, fering consists of, relates to, or involves a SEC. 333. CONFORMING LOAN LIMITS. and $801,950 for a mortgage secured by a 4- product— (a) FANNIE MAE.—Section 302(b)(2) of the family residence, except that such maximum ‘‘(A) the Director shall notify the enter- Federal National Mortgage Association limitations shall be adjusted effective Janu- prise of the determination; Charter Act (12 U.S.C. 1717(b)(2)) is amend- ary 1 of each year beginning with 2009, sub- ‘‘(B) the new activity, service, under- ed— ject to the limitations in this paragraph. taking, or offering described in the notice (1) in the second sentence, by redesignating Each adjustment shall be made by adding to under paragraph (1) shall be considered a clause (A) through (C) as clauses (i) through or subtracting from each such amount (as it product for purposes of this section; and (iii), respectively; may have been previously adjusted) a per- ‘‘(C) the enterprise shall withdraw its re- (2) in the third sentence, by striking centage thereof equal to the percentage in- quest or submit a written request for ap- ‘‘clause (A)’’ and inserting ‘‘clause (i)’’; crease or decrease, during the most recent

VerDate Mar 15 2010 15:08 Nov 08, 2010 Jkt 069102 PO 00000 Frm 00053 Fmt 0688 Sfmt 0634 E:\BR08\H08MY8.002 H08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD May 8, 2008 CONGRESSIONAL RECORD—HOUSE, Vol. 154, Pt. 6 8197 12-month or four-quarter period ending be- ment to such methodology is adopted in final pand the community investment program fore the time of determining such annual ad- form by the Director. and affordable housing program of the bank justment, in the housing price index main- ‘‘(3) REPORT.—Within 30 days of the com- established under subsections (i) and (j) of tained by the Director of the Federal Hous- pletion of any audit conducted under this section 10 of the Federal Home Loan Bank ing Finance Agency (pursuant to section 1322 subsection, the Comptroller General shall Act; of the Housing and Community Development submit a report detailing the results and ‘‘(5) examine the primary and secondary Act of 1992 (12 U.S.C. 4541)).’’; conclusions of the audit to the Director, the multifamily housing mortgage markets and (5) by inserting ‘‘(A)’’ after ‘‘(2)’’; and Committee on Financial Services of the describe— (6) by adding at the end the following new House of Representatives, and the Com- ‘‘(A) the availability and liquidity of mort- subparagraph: mittee on Banking, Housing, and Urban Af- gage credit; ‘‘(B)(i) Notwithstanding subparagraph (A), fairs of the Senate.’’. ‘‘(B) the status of efforts to provide stand- for mortgages originated on or after January (d) SENSE OF CONGRESS.—It is the sense of ard credit terms and underwriting guidelines 1, 2009, the limitation on the maximum origi- the Congress that the securitization of mort- for multifamily housing and to securitize nal principal obligation of a mortgage that gages by the Federal National Mortgage As- such mortgage products; and may be purchased by the Corporation shall sociation and the Federal Home Loan Mort- ‘‘(C) any factors inhibiting such standard- be the higher of— gage Corporation plays an important role in ization and securitization; ‘‘(I) the limitation determined under sub- providing liquidity to the United States ‘‘(6) examine actions each regulated entity paragraph (A) for a residence of the applica- housing markets. Therefore, the Congress has undertaken and could undertake to pro- ble size; or encourages the Federal National Mortgage mote and expand opportunities for first-time ‘‘(II) 125 percent of the area median price Association and the Federal Home Loan homebuyers, including the use of alternative for a residence of the applicable size, but in Mortgage Corporation to securitize mort- credit scoring; no case to exceed 175 percent of the limita- gages acquired under the increased con- ‘‘(7) describe any actions taken under sec- tion determined under subparagraph (A) for forming loan limits established by the tion 1325(5) with respect to originators found a residence of the applicable size. amendments made by this section, to the ex- to violate fair lending procedures; ‘‘(ii) The areas and area median prices used tent that such securitizations can be effected ‘‘(8) discuss and analyze existing condi- for purposes of the determination under this in a timely and efficient manner that does tions and trends, including conditions and subparagraph shall be the areas and area me- not impose additional costs for mortgages trends relating to pricing, in the housing dian prices used by the Secretary of Housing originated, purchased, or securitized under markets and mortgage markets; and and Urban Development in determining the the existing limits or interfere with the goal ‘‘(9) identify the extent to which each en- applicable limits under section 203(b)(2) of of adding liquidity to the market. terprise is involved in mortgage purchases (e) EFFECTIVE DATE.—The amendments the National Housing Act (12 U.S.C. and secondary market activities involving made by this section shall take effect on, 1709(b)(2)). A mortgage that is eligible for subprime loans (as identified in accordance and shall apply beginning on, January 1, purchase by the Corporation at the time the 2009. with the regulations issued pursuant to sec- mortgage is originated under this subpara- tion 334(b) of the Federal Housing Finance graph shall be eligible for such purchase for SEC. 334. ANNUAL HOUSING REPORT REGARDING REGULATED ENTITIES. Reform Act of 2008) and compare the charac- the duration of the term of the mortgage.’’. (a) IN GENERAL.—The Housing and Commu- teristics of subprime loans purchased and (c) HOUSING PRICE INDEX.—Subpart A of nity Development Act of 1992 is amended by securitized by the enterprises to other loans part 2 of subtitle A of title XIII of the Hous- striking section 1324 (12 U.S.C. 4544) and in- purchased and securitized by the enterprises. ing and Community Development Act of 1992 serting the following new section: ‘‘(c) DATA COLLECTION AND REPORTING.— (as amended by the preceding provisions of ‘‘(1) IN GENERAL.—To assist the Director in this title) is amended by inserting after sec- ‘‘SEC. 1324. ANNUAL HOUSING REPORT REGARD- ING REGULATED ENTITIES. analyzing the matters described in sub- tion 1321 (as added by the preceding provi- ‘‘(a) IN GENERAL.—After reviewing and ana- section (b) and establishing the methodology sions of this title) the following new section: lyzing the reports submitted under section described in section 1322, the Director shall ‘‘SEC. 1322. HOUSING PRICE INDEX. 309(n) of the Federal National Mortgage As- conduct, on a monthly basis, a survey of ‘‘(a) IN GENERAL.—The Director shall es- sociation Charter Act, section 307(f) of the mortgage markets in accordance with this tablish and maintain a method of assessing Federal Home Loan Mortgage Corporation subsection. the national average 1-family house price for Act, and section 10(j)(11) of the Federal Home ‘‘(2) DATA POINTS.—Each monthly survey use for adjusting the conforming loan limita- Loan Bank Act (12 U.S.C. 1430(j)(11)), the Di- conducted by the Director under paragraph tions of the enterprises. In establishing such rector shall submit a report, not later than (1) shall collect data on— method, the Director shall take into consid- October 30 of each year, to the Committee on ‘‘(A) the characteristics of individual eration the monthly survey of all major Financial Services of the House of Rep- mortgages that are eligible for purchase by lenders conducted by the Federal Housing resentatives and the Committee on Banking, the enterprises and the characteristics of in- Finance Agency to determine the national Housing, and Urban Affairs of the Senate, on dividual mortgages that are not eligible for average 1-family house price, the House the activities of each regulated entity. purchase by the enterprises including, in Price Index maintained by the Office of Fed- ‘‘(b) CONTENTS.—The report shall— both cases, information concerning— eral Housing Enterprise Oversight of the De- ‘‘(1) discuss the extent to which— ‘‘(i) the price of the house that secures the partment of Housing and Urban Development ‘‘(A) each enterprise is achieving the an- mortgage; before the effective date under section 365 of nual housing goals established under subpart ‘‘(ii) the loan-to-value ratio of the mort- the Federal Housing Finance Reform Act of B of this part; gage, which shall reflect any secondary liens 2008, any appropriate house price indexes of ‘‘(B) each enterprise is complying with sec- on the relevant property; the Bureau of the Census of the Department tion 1337; ‘‘(iii) the terms of the mortgage; of Commerce, and any other indexes or meas- ‘‘(C) each Federal home loan bank is com- ‘‘(iv) the creditworthiness of the borrower ures that the Director considers appropriate. plying with section 10(j) of the Federal Home or borrowers; and ‘‘(b) GAO AUDIT.— Loan Bank Act; and ‘‘(v) whether the mortgage, in the case of a ‘‘(1) IN GENERAL.—At such times as are re- ‘‘(D) each regulated entity is achieving the conforming mortgage, was purchased by an quired under paragraph (2), the Comptroller purposes of the regulated entity established enterprise; and General of the United States shall conduct by law; ‘‘(B) such other matters as the Director de- an audit of the methodology established by ‘‘(2) aggregate and analyze relevant data termines to be appropriate. the Director under subsection (a) to deter- on income to assess the compliance by each ‘‘(3) PUBLIC AVAILABILITY.—The Director mine whether the methodology established is enterprise with the housing goals established shall make any data collected by the Direc- an accurate and appropriate means of meas- under subpart B; tor in connection with the conduct of a uring changes to the national average 1-fam- ‘‘(3) aggregate and analyze data on income, monthly survey available to the public in a ily house price. race, and gender by census tract and other timely manner, provided that the Director ‘‘(2) TIMING.—An audit referred to in para- relevant classifications, and compare such may modify the data released to the public graph (1) shall be conducted and completed data with larger demographic, housing, and to ensure that the data is not released in an not later than the expiration of the 180-day economic trends; identifiable form. period that begins upon each of the following ‘‘(4) examine actions that— ‘‘(4) DEFINITION.—For purposes of this sub- dates: ‘‘(A) each enterprise has undertaken or section, the term ‘identifiable form’ means ‘‘(A) ESTABLISHMENT.—The date upon could undertake to promote and expand the any representation of information that per- which such methodology is initially estab- annual goals established under subpart B and mits the identity of a borrower to which the lished under subsection (a) in final form by the purposes of the enterprise established by information relates to be reasonably inferred the Director. law; and by either direct or indirect means.’’. ‘‘(B) MODIFICATION OR AMENDMENT.—Each ‘‘(B) each Federal home loan bank has (b) STANDARDS FOR SUBPRIME LOANS.—The date upon which any modification or amend- taken or could undertake to promote and ex- Director shall, not later than one year after

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MORTGAGOR IDENTIFICATION RE- gins after the effective date under section 365 lations issued under section 1316G of the QUIREMENTS FOR MORTGAGES OF of the Federal Housing Finance Reform Act Housing and Community Development Act of REGULATED ENTITIES. of 2008 and each year thereafter, annual 1992, establish standards by which mortgages ‘‘(a) LIMITATION.—The Director shall by housing goals, with respect to the mortgage purchased and mortgages purchased and regulation establish standards, and shall en- purchases by the enterprises, as follows: securitized shall be characterized as force compliance with such standards, that— ‘‘(1) SINGLE FAMILY HOUSING GOALS.—Three subprime for the purpose of, and only for the ‘‘(1) prohibit the enterprises from the pur- single-family housing goals under section purpose of, complying with the reporting re- chase, service, holding, selling, lending on 1332. quirement under section 1324(b)(9) of such the security of, or otherwise dealing with ‘‘(2) MULTIFAMILY SPECIAL AFFORDABLE Act. any mortgage on a one- to four-family resi- HOUSING GOALS.—A multifamily special af- dence that will be used as the principal resi- fordable housing goal under section 1333. SEC. 335. ANNUAL REPORTS BY REGULATED EN- dence of the mortgagor that does not meet TITIES ON AFFORDABLE HOUSING ‘‘(b) ELIMINATING INTEREST RATE DISPARI- STOCK. the requirements under subsection (b); and TIES.— ‘‘(2) prohibit the Federal home loan banks The Housing and Community Development ‘‘(1) IN GENERAL.—Upon request by the Di- from providing any advances to a member Act of 1992 is amended by inserting after sec- rector, an enterprise shall provide to the Di- for use in financing, and from accepting as tion 1328 (12 U.S.C. 4548) the following new rector, in a form determined by the Director, collateral for any advance to a member, any section: data the Director may review to determine mortgage on a one- to four-family residence whether there exist disparities in interest ‘‘SEC. 1329. ANNUAL REPORTS ON AFFORDABLE that will be used as the principal residence of rates charged on mortgages to borrowers HOUSING STOCK. the mortgagor that does not meet the re- who are minorities as compared with com- ‘‘(a) IN GENERAL.—To obtain information quirements under subsection (b). parable mortgages to borrowers of similar helpful in applying the formula under sec- ‘‘(b) IDENTIFICATION REQUIREMENTS.—The creditworthiness who are not minorities. tion 1337(c)(2) for the affordable housing pro- requirements under this subsection with re- ‘‘(2) REMEDIAL ACTIONS UPON PRELIMINARY gram under such section and for other appro- spect to a mortgage are that the mortgagor FINDING.—Upon a preliminary finding by the priate uses, the regulated entities shall con- have, at the time of settlement on the mort- Director that a pattern of disparities in in- duct, or provide for the conducting of, a gage, a Social Security account number.’’. terest rates with respect to any lender or study on an annual basis to determine the (b) FANNIE MAE.—Section 304 of the Fed- lenders exists pursuant to the data provided levels of affordable housing inventory, and eral National Mortgage Association Charter by an enterprise in paragraph (1), the Direc- the changes in such levels, in communities Act (12 U.S.C. 1719) is amended by adding at tor shall— throughout the United States. the end the following new subsection: ‘‘(A) refer the preliminary finding to the ‘‘(b) CONTENTS.—The annual study under ‘‘(g) PROHIBITION REGARDING MORTGAGOR appropriate regulatory or enforcement agen- this section shall determine, for the United IDENTIFICATION REQUIREMENT.—Nothing in cy for further review; States, each State, and each community this Act may be construed to authorize the ‘‘(B) require the enterprise to submit addi- within each State— corporation to purchase, service, hold, sell, tional data with respect to any lender or ‘‘(1) the level of affordable housing inven- lend on the security of, or otherwise deal lenders, as appropriate and to the extent tory, including affordable rental dwelling with any mortgage that the corporation is practicable, to the Director who shall submit units and affordable homeownership dwelling prohibited from so dealing with under the any such additional data to the regulatory units; standards issued under section 1330 of the or enforcement agency for appropriate ac- ‘‘(2) any changes to the level of such inven- Housing and Community Development Act of tion; and tory during the 12-month period of the study 1992 by the Director of the Federal Housing ‘‘(C) require the enterprise to undertake under this section, including— Finance Agency.’’. remedial actions, as appropriate, pursuant to ‘‘(A) any additions to such inventory, (c) FREDDIE MAC.—Section 305 of the Fed- section 1325(5) (12 U.S.C. 4545(5)). disaggregated by the category of such addi- eral Home Loan Mortgage Corporation Act ‘‘(3) ANNUAL REPORT TO CONGRESS.—The Di- tions (including new construction or housing (12 U.S.C. 1454) is amended by adding at the rector shall submit to the Committee on Fi- conversion); end the following new subsection: nancial Services of the House of Representa- ‘‘(B) any subtractions from such inventory, ‘‘(d) PROHIBITION REGARDING MORTGAGOR tives and the Committee on Banking, Hous- disaggregated by the category of such sub- IDENTIFICATION REQUIREMENTS.—Nothing in ing, and Urban Affairs of the Senate a report tractions (including abandonment, demoli- this Act may be construed to authorize the describing the actions taken, and being tion, or upgrade to market-rate housing); Corporation to purchase, service, hold, sell, taken, by the Director to carry out this sub- ‘‘(C) the number of new affordable dwelling lend on the security of, or otherwise deal section. No such report shall identify any units placed in service; and with any mortgage that the Corporation is lender or lenders who have not been found to ‘‘(D) the number of affordable housing prohibited from so dealing with under the have engaged in discriminatory lending prac- dwelling units withdrawn from service; standards issued under section 1330 of the tices pursuant to a final adjudication on the ‘‘(3) the types of financing used to build Housing and Community Development Act of record, and after opportunity for an adminis- any dwelling units added to such inventory 1992 by the Director of the Federal Housing trative hearing, in accordance with sub- level and the period during which such units Finance Agency.’’. chapter II of chapter 5 of title 5, United are required to remain affordable; (d) FEDERAL HOME LOAN BANKS.—Section States Code. ‘‘(4) any excess demand for affordable hous- 10(a) of the Federal Home Loan Bank Act (12 ‘‘(4) PROTECTION OF IDENTITY OF INDIVID- ing, including the number of households on U.S.C. 1430(a)) is amended— UALS.—In carrying out this subsection, the rental housing waiting lists and the tenure (1) by redesignating paragraph (6) as para- Director shall ensure that no property-re- of the wait on such lists; and graph (7); and lated or financial information that would en- ‘‘(5) such other information as the Director (2) by inserting after paragraph (5) the fol- able a borrower to be identified shall be may require. lowing new paragraph: made public. ‘‘(c) REPORT.—For each annual study con- ‘‘(6) PROHIBITION REGARDING MORTGAGOR ‘‘(c) TIMING.—The Director shall establish ducted pursuant to this section, the regu- IDENTIFICATION REQUIREMENTS.—Nothing in an annual deadline by which the Director lated entities shall submit to the Congress, this Act may be construed to authorize a shall establish the annual housing goals and make publicly available, a report setting Federal Home Loan Bank to provide any ad- under this subpart for each year, taking into forth the findings of the study. vance to a member for use in financing, or consideration the need for the enterprises to ‘‘(d) REGULATIONS AND TIMING.—The Direc- accept as collateral for an advance under reasonably and sufficiently plan their oper- tor shall, by regulation, establish require- this section, any mortgage that a Bank is ations and activities in advance, including ments for the studies and reports under this prohibited from so accepting under the operations and activities necessary to meet section, including deadlines for the submis- standards issued under section 1330 of the such annual goals. Housing and Community Development Act of sion of such annual reports and standards for ‘‘SEC. 1332. SINGLE-FAMILY HOUSING GOALS. 1992 by the Director of the Federal Housing determining affordable housing.’’. ‘‘(a) IN GENERAL.—The Director shall es- Finance Agency.’’. SEC. 336. MORTGAGOR IDENTIFICATION RE- tablish annual goals for the purchase by each QUIREMENTS FOR MORTGAGES OF SEC. 337. REVISION OF HOUSING GOALS. enterprise of conventional, conforming, sin- REGULATED ENTITIES. (a) HOUSING GOALS.—The Housing and gle-family, purchase money mortgages fi- (a) IN GENERAL.—Subpart A of part 2 of Community Development Act of 1992 is nancing owner-occupied and rental housing subtitle A of title XIII of the Housing and amended by striking sections 1331 through for each of the following categories of fami- Community Development Act of 1992 (12 1334 (12 U.S.C. 4561–4) and inserting the fol- lies: U.S.C. 4541 et seq.), as amended by the pre- lowing new sections: ‘‘(1) Low-income families. ceding provisions of this title, is further ‘‘SEC. 1331. ESTABLISHMENT OF HOUSING GOALS. ‘‘(2) Families that reside in low-income amended by adding at the end the following ‘‘(a) IN GENERAL.—The Director shall es- areas. new section: tablish, effective for the first year that be- ‘‘(3) Very low-income families.

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‘‘(b) REFINANCE SUBGOAL.— ‘‘(vi) The need to maintain the sound fi- ‘‘(B) the performance and effort of the en- ‘‘(1) IN GENERAL.—The Director shall estab- nancial condition of the enterprises. terprise in making mortgage credit available lish a separate subgoal within each goal ‘‘(3) HMDA INFORMATION.—The Director for multifamily housing in previous years; under subsection (a)(1) for the purchase by shall annually obtain information submitted ‘‘(C) the size of the multifamily mortgage each enterprise of mortgages for low-income in compliance with the Home Mortgage Dis- market; families on single family housing given to closure Act of 1975 regarding conventional, ‘‘(D) the ability of the enterprise to lead pay off or prepay an existing loan secured by conforming, single-family, owner-occupied or the industry in making mortgage credit the same property. The Director shall, for rental, as applicable, purchase money mort- available, especially for underserved mar- each year, determine whether each enter- gages originated and purchased for the pre- kets, such as for small multifamily projects prise has complied with the subgoal under vious year. of 5 to 50 units, multifamily properties in this subsection in the same manner provided ‘‘(4) CONFORMING MORTGAGES.—In deter- need of rehabilitation, and multifamily prop- under this section for determining compli- mining whether a mortgage is a conforming erties located in rural areas; and ance with the housing goals. mortgage for purposes of this paragraph, the ‘‘(E) the need to maintain the sound finan- ‘‘(2) ENFORCEMENT.—For purposes of sec- Director shall consider the original principal cial condition of the enterprise. tion 1336, the subgoal established under para- balance of the mortgage loan to be the prin- ‘‘(b) UNITS FINANCED BY HOUSING FINANCE graph (1) of this subsection shall be consid- cipal balance as reported in the information AGENCY BONDS.—The Director shall give ered to be a housing goal established under referred to in paragraph (3), as rounded to credit toward the achievement of the multi- this section. Such subgoal shall not be en- the nearest thousand dollars. family special affordable housing goal under forceable under any other provision of this ‘‘(e) NOTICE OF DETERMINATION AND ENTER- this section (for purposes of section 1336) to title (including subpart C of this part) other PRISE COMMENT.— dwelling units in multifamily housing that than section 1336 or under any provision of ‘‘(1) NOTICE.—Within 30 days of making a otherwise qualifies under such goal and that the Federal National Mortgage Association determination under subsection (c) regarding is financed by tax-exempt or taxable bonds Charter Act or the Federal Home Loan Mort- a compliance of an enterprise for a year with issued by a State or local housing finance gage Corporation Act. a housing goal established under this section agency, but only if such bonds— ‘‘(c) DETERMINATION OF COMPLIANCE.—The and before any public disclosure thereof, the ‘‘(1) are secured by a guarantee of the en- Director shall determine, for each year that Director shall provide notice of the deter- terprise; or the housing goals under this section are in mination to the enterprise, which shall in- ‘‘(2) are not investment grade and are pur- effect pursuant to section 1331(a), whether clude an analysis and comparison, by the Di- chased by the enterprise. each enterprise has complied with the single- rector, of the performance of the enterprise ‘‘(c) USE OF TENANT INCOME OR RENT.—The family housing goals established under this for the year and the targets for the year Director shall monitor the performance of section for such year. An enterprise shall be under subsection (d). each enterprise in meeting the goals estab- considered to be in compliance with such a ‘‘(2) COMMENT PERIOD.—The Director shall lished under this section and shall evaluate goal for a year only if, for each of the types provide each enterprise an opportunity to such performance (for purposes of section of families described in subsection (a), the comment on the determination during the 1336) based on— percentage of the number of conventional, 30-day period beginning upon receipt by the conforming, single-family, owner-occupied or ‘‘(1) the income of the prospective or ac- enterprise of the notice. tual tenants of the property, where such data rental, as applicable, purchase money mort- ‘‘(f) USE OF BORROWER INCOME.—In moni- gages purchased by each enterprise in such are available; or toring the performance of each enterprise ‘‘(2) where the data referred to in para- year that serve such families, meets or ex- pursuant to the housing goals under this sec- graph (1) are not available, rent levels af- ceeds the target for the year for such type of tion and evaluating such performance (for fordable to low-income and very low-income family that is established under subsection purposes of section 1336), the Director shall families. (d). consider a mortgagor’s income to be such in- ‘‘(d) ANNUAL TARGETS.— come at the time of origination of the mort- A rent level shall be considered to be afford- ‘‘(1) IN GENERAL.—Except as provided in gage. able for purposes of this subsection for an in- paragraph (2), for each of the types of fami- ‘‘(g) CONSIDERATION OF UNITS IN SINGLE- come category referred to in this subsection lies described in subsection (a), the target FAMILY RENTAL HOUSING.—In establishing if it does not exceed 30 percent of the max- under this subsection for a year shall be the any goal under this subpart, the Director imum income level of such income category, average percentage, for the three years that may take into consideration the number of with appropriate adjustments for unit size as most recently precede such year and for housing units financed by any mortgage on measured by the number of bedrooms. which information under the Home Mortgage single-family rental housing purchased by an ‘‘(d) DETERMINATION OF COMPLIANCE.—The Disclosure Act of 1975 is publicly available, enterprise. Director shall, for each year that the hous- of the number of conventional, conforming, ‘‘SEC. 1333. MULTIFAMILY SPECIAL AFFORDABLE ing goal under this section is in effect pursu- single-family, owner-occupied or rental, as HOUSING GOAL. ant to section 1331(a), determine whether applicable, purchase money mortgages origi- ‘‘(a) ESTABLISHMENT.— each enterprise has complied with such goal nated in such year that serves such type of ‘‘(1) IN GENERAL.—The Director shall estab- and the additional requirements under sub- family, as determined by the Director using lish, by regulation, an annual goal for the section (a)(2). the information obtained and determined purchase by each enterprise of each of the ‘‘SEC. 1334. DISCRETIONARY ADJUSTMENT OF pursuant to paragraphs (3) and (4). following types of mortgages on multifamily HOUSING GOALS. ‘‘(2) AUTHORITY TO INCREASE TARGETS.— housing: ‘‘(a) AUTHORITY.—An enterprise may peti- ‘‘(A) IN GENERAL.—The Director may, for ‘‘(A) Mortgages that finance dwelling units tion the Director in writing at any time dur- any year, establish by regulation, for any or for low-income families. ing a year to reduce the level of any goal for all of the types of families described in sub- ‘‘(B) Mortgages that finance dwelling units such year established pursuant to this sub- section (a), percentage targets that are high- for very low-income families. part. er than the percentages for such year deter- ‘‘(C) Mortgages that finance dwelling units ‘‘(b) STANDARD FOR REDUCTION.—The Direc- mined pursuant to paragraph (1), to reflect assisted by the low-income housing tax cred- tor may reduce the level for a goal pursuant expected changes in market performance re- it under section 42 of the Internal Revenue to such a petition only if— lated to such information under the Home Code of 1986. ‘‘(1) market and economic conditions or Mortgage Disclosure Act of 1975. ‘‘(2) ADDITIONAL REQUIREMENTS FOR SMALL- the financial condition of the enterprise re- ‘‘(B) FACTORS.—In establishing any targets ER PROJECTS.—The Director shall establish, quire such action; or pursuant to subparagraph (A), the Director within the goal under this section, addi- ‘‘(2) efforts to meet the goal would result shall consider the following factors: tional requirements for the purchase by each in the constraint of liquidity, over-invest- ‘‘(i) National housing needs. enterprise of mortgages described in para- ment in certain market segments, or other ‘‘(ii) Economic, housing, and demographic graph (1) for multifamily housing projects of consequences contrary to the intent of this conditions. a smaller or limited size, which may be subpart, or section 301(3) of the Federal Na- ‘‘(iii) The performance and effort of the en- based on the number of dwelling units in the tional Mortgage Association Charter Act (12 terprises toward achieving the housing goals project or the amount of the mortgage, or U.S.C. 1716(3)) or section 301(3) of the Federal under this section in previous years. both, and shall include multifamily housing Home Loan Mortgage Corporation Act (12 ‘‘(iv) The size of the conventional mort- projects of such smaller sizes as are typical U.S.C. 1451 note), as applicable. gage market serving each of the types of among such projects that serve rural areas. ‘‘(c) DETERMINATION.—The Director shall families described in subsection (a) relative ‘‘(3) FACTORS.—In establishing the goal make a determination regarding any pro- to the size of the overall conventional mort- under this section relating to mortgages on posed reduction within 30 days of receipt of gage market. multifamily housing for an enterprise for a the petition regarding the reduction. The Di- ‘‘(v) The ability of the enterprise to lead year, the Director shall consider— rector may extend such period for a single the industry in making mortgage credit ‘‘(A) national multifamily mortgage credit additional 15-day period, but only if the Di- available. needs; rector requests additional information from

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the enterprise. A denial by the Director to SEC. 338. DUTY TO SERVE UNDERSERVED MAR- ‘‘(C) RURAL AND OTHER UNDERSERVED MAR- reduce the level of any goal under this sec- KETS. KETS.—The enterprise shall lead the industry tion may be appealed to the United States (a) ESTABLISHMENT AND EVALUATION OF in developing loan products and flexible un- PERFORMANCE.—Section 1335 of the Housing District Court for the District of Columbia derwriting guidelines to facilitate a sec- and Community Development Act of 1992 (12 ondary market for mortgages on housing for or the United States district court in the ju- U.S.C. 4565) is amended— risdiction in which the headquarters of an very low-, low-, and moderate-income fami- (1) in the section heading, by inserting lies in rural areas, and for mortgages for enterprise is located.’’. ‘‘DUTY TO SERVE UNDERSERVED MAR- housing for any other underserved market ’’ before ‘‘ ’’; (b) CONFORMING AMENDMENTS.—The Hous- KETS AND OTHER for very low-, low-, and moderate-income (2) by striking subsection (b); ing and Community Development Act of 1992 families that the Secretary identifies as (3) in subsection (a)— lacking adequate credit through conven- is amended— (A) in the matter preceding paragraph (1), tional lending sources. Such underserved (1) in section 1335(a) (12 U.S.C. 4565(a)), in by inserting ‘‘and to carry out the duty the matter preceding paragraph (1), by strik- under subsection (a) of this section’’ before markets may be identified by borrower type, ing ‘‘low- and moderate-income housing ‘‘, each enterprise shall’’; market segment, or geographic area.’’; and goal’’ and all that follows through ‘‘section (B) in paragraph (3), by inserting ‘‘and’’ (5) by adding at the end the following new 1334’’ and inserting ‘‘housing goals estab- after the semicolon at the end; subsection: lished under this subpart’’; and (C) in paragraph (4), by striking ‘‘; and’’ ‘‘(c) EVALUATION AND REPORTING OF COM- (2) in section 1336(a)(1) (12 U.S.C. 4566(a)(1)), and inserting a period; PLIANCE.— by striking ‘‘sections 1332, 1333, and 1334,’’ (D) by striking paragraph (5); and ‘‘(1) IN GENERAL.—Not later than 6 months and inserting ‘‘this subpart’’. (E) by redesignating such subsection as after the effective date under section 365 of (c) DEFINITIONS.—Section 1303 of the Hous- subsection (b); the Federal Housing Finance Reform Act of ing and Community Development Act of 1992 (4) by inserting before subsection (b) (as so 2008, the Director shall establish a manner (12 U.S.C. 4502), as amended by the preceding redesignated by paragraph (3)(E) of this sub- for evaluating whether, and the extent to section) the following new subsection: provisions of this title, is further amended— which, the enterprises have complied with ‘‘(a) DUTY TO SERVE UNDERSERVED MAR- the duty under subsection (a) to serve under- (1) in paragraph (22) (relating to the defini- KETS.— served markets and for rating the extent of tion of ‘‘very low-income’’), by striking ‘‘60 ‘‘(1) DUTY.—In accordance with the purpose such compliance. Using such method, the Di- percent’’ each place such term appears and of the enterprises under section 301(3) of the rector shall, for each year, evaluate such inserting ‘‘50 percent’’; Federal National Mortgage Association compliance and rate the performance of each (2) by redesignating paragraphs (19) Charter Act (12 U.S.C. 1716) and section through (22) as paragraphs (23) through (26), 301(b)(3) of the Federal Home Loan Mortgage enterprise as to extent of compliance. The respectively; Corporation Act (12 U.S.C. 1451 note) to un- Director shall include such evaluation and (3) by inserting after paragraph (18) the fol- dertake activities relating to mortgages on rating for each enterprise for a year in the lowing new paragraph: housing for very low-, low-, and moderate-in- report for that year submitted pursuant to ‘‘(22) RURAL AREA.—The term ‘rural area’ come families involving a reasonable eco- section 1319B(a). has the meaning given such term in section nomic return that may be less than the re- ‘‘(2) SEPARATE EVALUATIONS.—In deter- 520 of the Housing Act of 1949 (42 U.S.C. 1490), turn earned on other activities, each enter- mining whether an enterprise has complied except that such term includes micropolitan prise shall have the duty to increase the li- with the duty referred to in paragraph (1), areas and tribal trust lands.’’. quidity of mortgage investments and im- the Director shall separately evaluate (4) by redesignating paragraphs (13) prove the distribution of investment capital whether the enterprise has complied with through (18) as paragraphs (16) through (21), available for mortgage financing for under- such duty with respect to each of the under- respectively; served markets. served markets identified in subsection (a), (5) by inserting after paragraph (12) the fol- ‘‘(2) UNDERSERVED MARKETS.—To meet its taking into consideration— lowing new paragraph: duty under paragraph (1), each enterprise ‘‘(A) the development of loan products and ‘‘(15) LOW-INCOME AREA.—The term ‘low in- shall comply with the following require- more flexible underwriting guidelines; come area’ means a census tract or block ments with respect to the following under- ‘‘(B) the extent of outreach to qualified numbering area in which the median income served markets: loan sellers in each of such underserved mar- does not exceed 80 percent of the median in- ‘‘(A) MANUFACTURED HOUSING.—The enter- kets; and come for the area in which such census tract prise shall lead the industry in developing ‘‘(C) the volume of loans purchased in each or block numbering area is located, and, for loan products and flexible underwriting of such underserved markets. the purposes of section 1332(a)(2), shall in- guidelines to facilitate a secondary market ‘‘(3) MANUFACTURED HOUSING MARKET.—In clude families having incomes not greater for mortgages on manufactured homes for determining whether an enterprise has com- than 100 percent of the area median income very low-, low-, and moderate-income fami- plied with the duty under subparagraph (A) who reside in minority census tracts.’’; lies. of subsection (a)(2), the Director may con- (6) by redesignating paragraphs (11) and ‘‘(B) AFFORDABLE HOUSING PRESERVATION.— sider loans secured by both real and personal (12) as paragraphs (13) and (14), respectively; The enterprise shall lead the industry in de- property.’’. (7) by inserting after paragraph (10) the fol- veloping loan products and flexible under- (b) ENFORCEMENT.—Subsection (a) of sec- lowing new paragraph: writing guidelines to facilitate a secondary ‘‘(12) EXTREMELY LOW-INCOME.—The term market to preserve housing affordable to tion 1336 of the Housing and Community De- ‘extremely low-income’ means— very low-, low-, and moderate-income fami- velopment Act of 1992 (12 U.S.C. 4566(a)) is ‘‘(A) in the case of owner-occupied units, lies, including housing projects subsidized amended— income not in excess of 30 percent of the area under— (1) in paragraph (1), by inserting ‘‘and with median income; and ‘‘(i) the project-based and tenant-based the duty under section 1335(a) of each enter- ‘‘(B) in the case of rental units, income not rental assistance programs under section 8 of prise with respect to underserved markets,’’ in excess of 30 percent of the area median in- the United States Housing Act of 1937; before ‘‘as provided in this section’’; and come, with adjustments for smaller and larg- ‘‘(ii) the program under section 236 of the (2) by adding at the end of such subsection, er families, as determined by the Sec- National Housing Act; as amended by the preceding provisions of retary.’’; ‘‘(iii) the below-market interest rate mort- this subtitle, the following new paragraph: (8) by redesignating paragraphs (7) through gage program under section 221(d)(4) of the ‘‘(4) ENFORCEMENT OF DUTY TO PROVIDE (10) as paragraphs (8) through (11), respec- National Housing Act; MORTGAGE CREDIT TO UNDERSERVED MAR- tively; and ‘‘(iv) the supportive housing for the elderly KETS.—The duty under section 1335(a) of each (9) by inserting after paragraph (6) the fol- program under section 202 of the Housing enterprise to serve underserved markets (as lowing new paragraph: Act of 1959; determined in accordance with section ‘‘(7) CONFORMING MORTGAGE.—The term ‘‘(v) the supportive housing program for 1335(c)) shall be enforceable under this sec- ‘conforming mortgage’ means, with respect persons with disabilities under section 811 of tion to the same extent and under the same to an enterprise, a conventional mortgage the Cranston-Gonzalez National Affordable provisions that the housing goals established having an original principal obligation that Housing Act; under this subpart are enforceable. Such does not exceed the dollar limitation, in ef- ‘‘(vi) the programs under title IV of the duty shall not be enforceable under any fect at the time of such origination, under, McKinney-Vento Homeless Assistance Act other provision of this title (including sub- as applicable— (42 U.S.C. 11361 et seq.), but only permanent part C of this part) other than this section or ‘‘(A) section 302(b)(2) of the Federal Na- supportive housing projects subsidized under under any provision of the Federal National tional Mortgage Association Charter Act; or such programs; and Mortgage Association Charter Act or the ‘‘(B) section 305(a)(2) of the Federal Home ‘‘(vii) the rural rental housing program Federal Home Loan Mortgage Corporation Loan Mortgage Corporation Act.’’. under section 515 of the Housing Act of 1949. Act.’’.

VerDate Mar 15 2010 15:08 Nov 08, 2010 Jkt 069102 PO 00000 Frm 00057 Fmt 0688 Sfmt 0634 E:\BR08\H08MY8.002 H08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD May 8, 2008 CONGRESSIONAL RECORD—HOUSE, Vol. 154, Pt. 6 8201 SEC. 339. MONITORING AND ENFORCING COMPLI- substantial probability that an enterprise economic distress pursuant to section 143(j) ANCE WITH HOUSING GOALS. will fail, or has actually failed, to meet any of the Internal Revenue Code of 1986 (26 (a) ADDITIONAL CREDIT FOR CERTAIN MORT- housing goal under this subpart and that the U.S.C. 143(j)); GAGES.—Section 1336(a) of the Housing and achievement of the housing goal was or is ‘‘(3) to increase and preserve the supply of Community Development Act of 1992 (12 feasible, the Director may require that the rental and owner-occupied housing for ex- U.S.C. 4566(a)) is amended— enterprise submit a housing plan under this tremely low- and very low-income families; (1) in paragraph (2), by inserting ‘‘, except subsection. If the Director makes such a ‘‘(4) to increase investment in public infra- as provided in paragraph (4),’’ after ‘‘which’’; finding and the enterprise refuses to submit structure development in connection with and such a plan, submits an unacceptable plan, housing assisted under this section; and (2) by adding at the end the following new fails to comply with the plan or the Director ‘‘(5) to leverage investments from other paragraph: finds that the enterprise has failed to meet sources in affordable housing and in public ‘‘(5) ADDITIONAL CREDIT.—The Director any housing goal under this subpart, in addi- infrastructure development in connection shall assign more than 125 percent credit to- tion to requiring an enterprise to submit a with housing assisted under this section. ward achievement, under this section, of the housing plan, the Director may issue a cease ‘‘(b) ALLOCATION OF AMOUNTS BY ENTER- housing goals for mortgage purchase activi- and desist order in accordance with section PRISES.— ties of the enterprises that comply with the 1341, impose civil money penalties in accord- ‘‘(1) IN GENERAL.—In accordance with regu- requirements of such goals and support— ance with section 1345, or order other rem- lations issued by the Director under sub- ‘‘(A) housing that meets energy efficiency edies as set forth in paragraph (7) of this sub- section (m) and subject to paragraph (2) of or other environmental standards that are section.’’; this subsection and subsection (i)(5), each en- established by a Federal, State, or local gov- (B) in paragraph (2)— terprise shall allocate to the affordable hous- ernmental authority with respect to the geo- (i) by striking ‘‘CONTENTS.—Each housing ing fund established under subsection (a), in graphic area where the housing is located or plan’’ and inserting ‘‘HOUSING PLAN.—If the each of the years 2008 through 2012, an are otherwise widely recognized; or Director requires a housing plan under this amount equal to 1.2 basis points for each dol- ‘‘(B) housing that includes a licensed section, such a plan’’; and lar of the average total mortgage portfolio of childcare center. (ii) in subparagraph (B), by inserting ‘‘and the enterprise during the preceding year. The availability of additional credit under this paragraph shall not be used to increase changes in its operations’’ after ‘‘improve- ‘‘(2) SUSPENSION OF CONTRIBUTIONS.—The any housing goal, subgoal, or target estab- ments’’; Director shall temporarily suspend the allo- lished under this subpart.’’. (C) in paragraph (3)— cation under paragraph (1) by an enterprise (b) MONITORING AND ENFORCEMENT.—Sec- (i) by inserting ‘‘comply with any remedial to the affordable housing fund upon a finding tion 1336 of the Housing and Community De- action or’’ before ‘‘submit a housing plan’’; by the Director that such allocations— velopment Act of 1992 (12 U.S.C. 4566) is and ‘‘(A) are contributing, or would contribute, amended— (ii) by striking ‘‘under subsection (b)(3) to the financial instability of the enterprise; (1) in subsection (b)— that a housing plan is required’’; ‘‘(B) are causing, or would cause, the enter- (A) in the subsection heading, by inserting (D) in paragraph (4), by striking the first prise to be classified as undercapitalized; or ‘‘PRELIMINARY’’ before ‘‘DETERMINATION’’; two sentences and inserting the following: ‘‘(C) are preventing, or would prevent, the (B) by striking paragraph (1) and inserting ‘‘The Director shall review each submission enterprise from successfully completing a the following new paragraph: by an enterprise, including a housing plan capital restoration plan under section 1369C. ‘‘(1) NOTICE.—If the Director preliminarily submitted under this subsection, and not ‘‘(3) 5-YEAR SUNSET AND REPORT.— determines that an enterprise has failed, or later than 30 days after submission, approve ‘‘(A) SUNSET.—The enterprises shall not be that there is a substantial probability that or disapprove the plan or other action. The required to make allocations to the afford- an enterprise will fail, to meet any housing Director may extend the period for approval able housing fund in 2012 or in any year goal established under this subpart, the Di- or disapproval for a single additional 30-day thereafter. rector shall provide written notice to the en- period if the Director determines such exten- ‘‘(B) REPORT ON PROGRAM CONTINUANCE.— terprise of such a preliminary determina- sion necessary.’’; and Not later than June 30, 2011, the Director tion, the reasons for such determination, and (E) by adding at the end the following new shall submit to the Committee on Financial the information on which the Director based paragraph: Services of the House of Representatives and the determination.’’; ‘‘(7) ADDITIONAL REMEDIES FOR FAILURE TO the Committee on Banking, Housing, and (C) in paragraph (2)— MEET GOALS.—In addition to ordering a hous- Urban Affairs of the Senate a report making (i) in subparagraph (A), by inserting ‘‘fi- ing plan under this section, issuing cease and recommendations on whether the program nally’’ before ‘‘determining’’; desist orders under section 1341, and ordering under this section, including the require- (ii) by striking subparagraphs (B) and (C) civil money penalties under section 1345, the ment for the enterprises to make allocations and inserting the following new subpara- Director may seek other actions when an en- to the affordable housing fund, should be ex- graph: terprise fails to meet a goal, and exercise ap- tended and on any modifications for the pro- ‘‘(B) EXTENSION OR SHORTENING OF PE- propriate enforcement authority available to gram. RIOD.—The Director may— the Director under this Act to prohibit the ‘‘(4) PROHIBITION OF PASS-THROUGH OF COST ‘‘(i) extend the period under subparagraph enterprise from initially offering any prod- OF ALLOCATIONS.—The Director shall, by reg- (A) for good cause for not more than 30 addi- uct (as such term is defined in section 1321(f)) ulation, prohibit each enterprise from re- tional days; and or engaging in any new activities, services, directing such costs, through increased ‘‘(ii) shorten the period under subpara- undertakings, and offerings and to order the charges or fees, or decreased premiums, or in graph (A) for good cause.’’; and enterprise to suspend products and activi- any other manner, to the originators of (iii) by redesignating subparagraph (D) as ties, services, undertakings, and offerings mortgages purchased or securitized by the subparagraph (C); and pending its achievement of the goal.’’. enterprise. (D) in paragraph (3)— SEC. 340. AFFORDABLE HOUSING FUND. ‘‘(c) AFFORDABLE HOUSING NEEDS FOR- (i) in subparagraph (A), by striking ‘‘deter- (a) IN GENERAL.—The Housing and Commu- MULAS.— mine’’ and inserting ‘‘issue a final deter- nity Development Act of 1992 is amended by ‘‘(1) ALLOCATION FOR 2008.— mination of’’; striking sections 1337 and 1338 (12 U.S.C. 4562 ‘‘(A) ALLOCATION PERCENTAGES FOR LOU- (ii) in subparagraph (B), by inserting note) and inserting the following new sec- ISIANA AND MISSISSIPPI.—For purposes of sub- ‘‘final’’ before ‘‘determinations’’; and tion: section (d)(1)(A), the allocation percentages (iii) in subparagraph (C)— ‘‘SEC. 1337. AFFORDABLE HOUSING FUND. for 2008 for the grantees under this section (I) by striking ‘‘Committee on Banking, Fi- ‘‘(a) ESTABLISHMENT AND PURPOSE.—The for such year shall be as follows: nance and Urban Affairs’’ and inserting Director, in consultation with the Secretary ‘‘(i) The allocation percentage for the Lou- ‘‘Committee on Financial Services’’; and of Housing and Urban Development, shall es- isiana Housing Finance Agency shall be 75 (II) by inserting ‘‘final’’ before ‘‘determina- tablish and manage an affordable housing percent. tion’’ each place such term appears; and fund in accordance with this section, which ‘‘(ii) The allocation percentage for the Mis- (2) in subsection (c)— shall be funded with amounts allocated by sissippi Development Authority shall be 25 (A) by striking the subsection designation the enterprises under subsection (b). The percent. and heading and all that follows through the purpose of the affordable housing fund shall ‘‘(B) USE IN DISASTER AREAS.—Affordable end of paragraph (1) and inserting the fol- be to provide formula grants to grantees for housing grant amounts for 2008 shall be used lowing: use— only as provided in subsection (g) only for ‘‘(c) CEASE AND DESIST ORDERS, CIVIL ‘‘(1) to increase homeownership for ex- such eligible activities in areas that were MONEY PENALTIES, AND REMEDIES INCLUDING tremely low-and very low-income families; subject to a declaration by the President of HOUSING PLANS.— ‘‘(2) to increase investment in housing in a major disaster or emergency under the ‘‘(1) REQUIREMENT.—If the Director finds, low-income areas, and areas designated as Robert T. Stafford Disaster Relief and Emer- pursuant to subsection (b), that there is a qualified census tracts or an area of chronic gency Assistance Act (42 U.S.C. 5121 et seq.)

VerDate Mar 15 2010 15:08 Nov 08, 2010 Jkt 069102 PO 00000 Frm 00058 Fmt 0688 Sfmt 0634 E:\BR08\H08MY8.002 H08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD 8202 CONGRESSIONAL RECORD—HOUSE, Vol. 154, Pt. 6 May 8, 2008 in connection with Hurricane Katrina or to the affordable housing fund for such year garding the plan, consider any public com- Rita of 2005. and any recaptured amounts available pursu- ments received, and make the completed ‘‘(2) ALLOCATION FORMULA FOR OTHER ant to subsection (i)(4), less any amounts plan available to the public. YEARS.—The Secretary of Housing and Urban used pursuant to subsection (i)(1). ‘‘(3) CONTENTS.—An allocation plan of a Development shall, by regulation, establish a ‘‘(2) NOTICE.—In each year referred to in grantee shall set forth the requirements for formula to allocate, among the States (as subsection (b)(1), not later than 60 days after eligible recipients under subsection (h) to such term is defined in section 1303) and fed- the date that the Director determines the apply to the grantee to receive assistance erally recognized Indian tribes, the amounts amounts described in paragraph (1) to be from affordable housing fund grant amounts, provided by the enterprises in each year re- available for affordable housing fund grants including a requirement that each such ap- ferred to subsection (b)(1), other than 2008, to to grantees in such year, the Director shall plication include— the affordable housing fund established cause to be published in the Federal Register ‘‘(A) a description of the eligible activities under this section. The formula shall be a notice that such amounts shall be so avail- to be conducted using such assistance; and based on the following factors, with respect able. ‘‘(B) a certification by the eligible recipi- to each State and tribe: ‘‘(3) GRANT AMOUNT.— ent applying for such assistance that any ‘‘(A) The ratio of the population of the ‘‘(A) IN GENERAL.—For each year referred housing units assisted with such assistance State or federally recognized Indian tribe to to in subsection (b)(1), the Director shall will comply with the requirements under the aggregate population of all the States make a grant from amounts in the affordable this section. and tribes. housing fund to each grantee in an amount ‘‘(f) SELECTION OF ACTIVITIES FUNDED USING ‘‘(B) The percentage of families in the that is, except as provided in subparagraph AFFORDABLE HOUSING FUND GRANT State or federally recognized Indian tribe (B), equal to the formula amount under this AMOUNTS.—Affordable housing fund grant that pay more than 50 percent of their an- section for the grantee. A grantee may des- amounts of a grantee may be used, or com- nual income for housing costs. ignate a State housing finance agency, hous- mitted for use, only for activities that— ‘‘(C) The percentage of persons in the State ing and community development entity, ‘‘(1) are eligible under subsection (g) for or federally recognized Indian tribe that are tribally designated housing entity (as such such use; members of extremely low- or very low-in- term is defined in section 4 of the Native ‘‘(2) comply with the applicable allocation come families. American Housing Assistance and Self-De- plan under subsection (e) of the grantee; and ‘‘(D) The cost of developing or carrying out termination Act of 1997 (25 U.S.C. 4103)) or ‘‘(3) are selected for funding by the grantee rehabilitation of housing in the State or for other qualified instrumentality of the grant- in accordance with the process and criteria the federally recognized Indian tribe. ee to receive such grant amounts. for such selection established pursuant to ‘‘(E) The percentage of families in the ‘‘(B) REDUCTION FOR FAILURE TO OBTAIN RE- subsection (m)(2)(C). State or federally recognized Indian tribe TURN OF MISUSED FUNDS.—If in any year a ‘‘(g) ELIGIBLE ACTIVITIES.—Affordable that live in substandard housing. grantee fails to obtain reimbursement or re- housing fund grant amounts of a grantee ‘‘(F) The percentage of housing stock in turn of the full amount required under sub- shall be eligible for use, or for commitment the State or for the federally recognized In- section (j)(1)(B) to be reimbursed or returned for use, only for assistance for— dian tribe that is extremely old housing. to the grantee during such year— ‘‘(1) the production, preservation, and re- ‘‘(G) Any other factors that the Secretary ‘‘(i) except as provided in clause (ii)— habilitation of rental housing, including determines to be appropriate. ‘‘(I) the amount of the grant for the grant- housing under the programs identified in sec- ‘‘(3) FAILURE TO ESTABLISH.—If, in any year ee for the succeeding year, as determined tion 1335(a)(2)(B), except that such grant referred to in subsection (b)(1), other than pursuant to subparagraph (A), shall be re- amounts may be used for the benefit only of 2008, the regulations establishing the for- duced by the amount by which such amounts extremely low- and very low-income fami- mula required under paragraph (2) of this required to be reimbursed or returned exceed lies; subsection have not been issued by the date the amount actually reimbursed or returned; ‘‘(2) the production, preservation, and re- that the Director determines the amounts and habilitation of housing for homeownership, described in subsection (d)(1) to be available ‘‘(II) the amount of the grant for the suc- including such forms as downpayment assist- for affordable housing fund grants in such ceeding year for each other grantee whose ance, closing cost assistance, and assistance year, for purposes of such year any amounts grant is not reduced pursuant to subclause for interest-rate buy-downs, that— for a State (as such term is defined in sec- (I) shall be increased by the amount deter- ‘‘(A) is available for purchase only for use tion 1303 of this Act) that would otherwise be mined by applying the formula established as a principal residence by families that determined under subsection (d) by applying pursuant to subsection (c)(2) to the total qualify both as— the formula established pursuant to para- amount of all reductions for all grantees for ‘‘(i) extremely low- and very-low income graph (2) of this subsection shall be deter- such year pursuant to subclause (I); or families at the times described in subpara- mined instead by applying, for such State, ‘‘(ii) in any case in which such failure to graphs (A) through (C) of section 215(b)(2) of the percentage that is equal to the percent- obtain reimbursement or return occurs dur- the Cranston-Gonzalez National Affordable age of the total amounts made available for ing a year immediately preceding a year in Housing Act (42 U.S.C. 12745(b)(2)); and such year for allocation under subtitle A of which grants under this subsection will not ‘‘(ii) first-time homebuyers, as such term title II of the Cranston-Gonzalez National be made, the grantee shall pay to the Direc- is defined in section 104 of the Cranston-Gon- Affordable Housing Act (42 U.S.C. 12741 et tor for reallocation among the other grant- zalez National Affordable Housing Act (42 seq.) that are allocated in such year, pursu- ees an amount equal to the amount of the re- U.S.C. 12704), except that any reference in ant to such subtitle, to such State (including duction for the grantee that would otherwise such section to assistance under title II of any insular area or unit of general local gov- apply under clause (i)(I). such Act shall for purposes of this section be ernment, as such terms are defined in sec- ‘‘(e) GRANTEE ALLOCATION PLANS.— considered to refer to assistance from afford- tion 104 of such Act (42 U.S.C. 12704), that is ‘‘(1) IN GENERAL.—For each year that a able housing fund grant amounts; treated as a State under section 1303 of this grantee receives affordable housing fund ‘‘(B) has an initial purchase price that Act) and to participating jurisdictions and grant amounts, the grantee shall establish meets the requirements of section 215(b)(1) of other eligible entities within such State. an allocation plan in accordance with this the Cranston-Gonzalez National Affordable ‘‘(d) ALLOCATION OF FORMULA AMOUNT; subsection, which shall be a plan for the dis- Housing Act; GRANTS.— tribution of such grant amounts of the ‘‘(C) is subject to the same resale restric- ‘‘(1) FORMULA AMOUNT.—For each year re- grantee for such year that— tions established under section 215(b)(3) of ferred to in subsection (b)(1), the Director ‘‘(A) is based on priority housing needs, as the Cranston-Gonzalez National Affordable shall determine the formula amount under determined by the grantee in accordance Housing Act and applicable to the partici- this section for each grantee, which shall be with the regulations established under sub- pating jurisdiction that is the State in which the amount determined for such grantee— section (m)(2)(C); such housing is located; and ‘‘(A) for 2008, by applying the allocation ‘‘(B) complies with subsection (f); and ‘‘(D) is made available for purchase only percentages under subparagraph (A) of sub- ‘‘(C) includes performance goals, bench- by, or in the case of assistance under this section (c)(1) to the sum of the total marks, and timetables for the grantee for paragraph, is made available only to, home- amounts allocated by the enterprises to the the production, preservation, and rehabilita- buyers who have, before purchase— affordable housing fund for such year, less tion of affordable rental and homeownership ‘‘(i) completed a program of counseling any amounts used pursuant to subsection housing with such grant amounts that com- with respect to the responsibilities and fi- (i)(1); and ply with the requirements established by the nancial management involved in homeown- ‘‘(B) for any other year referred to in sub- Director pursuant to subsection (m)(2)(F). ership that is approved by the Director; ex- section (b)(1) (other than 2008), by applying ‘‘(2) ESTABLISHMENT.—In establishing an cept that the Director may, at the request of the formula established pursuant to para- allocation plan, a grantee shall notify the a State, waive the requirements of this sub- graph (2) of subsection (c) to the sum of the public of the establishment of the plan, pro- paragraph with respect to a geographic area total amounts allocated by the enterprises vide an opportunity for public comments re- or areas within the State if: (I) the travel

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time or distance involved in providing coun- ‘‘(3) MAXIMUM AMOUNT FOR PUBLIC INFRA- ‘‘(I) A social security card accompanied by seling with respect to such area or areas, as STRUCTURE DEVELOPMENT ACTIVITIES IN CON- a photo identification card issued by the otherwise required under this subparagraph, NECTION WITH AFFORDABLE HOUSING ACTIVI- Federal Government or a State Government; on an in-person basis is excessive or the cost TIES.—Of the aggregate amount of affordable or of such travel is prohibitive; and (II) the housing fund grant amounts provided in each ‘‘(II) A driver’s license or identification State provides alternative forms of coun- year to a grantee, not more than 12.5 percent card issued by a State in the case of a State seling for such area or areas, which may in- may be used for activities under paragraph that is in compliance with title II of the clude interactive telephone counseling, on- (3) of subsection (g). REAL ID Act of 2005 (title II of division B of line counseling, interactive video counseling, ‘‘(4) DEADLINE FOR COMMITMENT OR USE.— Public Law 109–13; 49 U.S.C. 30301 note). and interactive home study counseling and a Any affordable housing fund grant amounts ‘‘(ii) PASSPORT.—A passport issued by the program of financial literacy and education of a grantee shall be used or committed for United States or a foreign government. to promote an understanding of consumer, use within two years of the date of that such ‘‘(iii) USCIS PHOTO IDENTIFICATION CARD.— economic, and personal finance issues and grant amounts are made available to the A photo identification card issued by the concepts, including saving for retirement, grantee. The Director shall recapture into Secretary of Homeland Security (acting managing credit, long-term care, and estate the affordable housing fund any such through the Director of the United States planning and education on predatory lend- amounts not so used or committed for use Citizenship and Immigration Services). ing, identity theft, and financial abuse and allocate such amounts under subsection ‘‘(B) REGULATIONS.—The Director shall, by schemes relating to homeownership that is (d)(1) in the first year after such recapture. regulation, require that each grantee and re- approved by the Director, except that enti- ‘‘(5) USE OF RETURNS.—The Director shall, cipient take such actions as the Director ties providing such counseling shall not dis- by regulation provide that any return on a considers necessary to ensure compliance criminate against any particular form of loan or other investment of any affordable with the requirements of subparagraph (A). housing; and housing fund grant amounts of a grantee ‘‘(ii) demonstrated, in accordance with reg- shall be treated, for purposes of availability ‘‘(j) ACCOUNTABILITY OF RECIPIENTS AND ulations as the Director shall issue setting to and use by the grantee, as affordable GRANTEES.— forth requirements for sufficient evidence, housing fund grant amounts. ‘‘(1) RECIPIENTS.— that they are lawfully present in the United ‘‘(6) PROHIBITED USES.—The Director ‘‘(A) TRACKING OF FUNDS.—The Director States; and shall— shall— ‘‘(3) public infrastructure development ac- ‘‘(A) by regulation, set forth prohibited ‘‘(i) require each grantee to develop and tivities in connection with housing activities uses of affordable housing fund grant maintain a system to ensure that each re- funded under paragraph (1) or (2). amounts, which shall include use for— cipient of assistance from affordable housing ‘‘(h) ELIGIBLE RECIPIENTS.—Affordable ‘‘(i) political activities; fund grant amounts of the grantee uses such housing fund grant amounts of a grantee ‘‘(ii) advocacy; amounts in accordance with this section, the may be provided only to a recipient that is ‘‘(iii) lobbying, whether directly or regulations issued under this section, and an organization, agency, or other entity (in- through other parties; any requirements or conditions under which cluding a for-profit entity, a nonprofit enti- ‘‘(iv) counseling services; such amounts were provided; and ty, and a faith-based organization) that— ‘‘(v) travel expenses; and ‘‘(ii) establish minimum requirements for ‘‘(1) has demonstrated experience and ca- ‘‘(vi) preparing or providing advice on tax agreements, between the grantee and recipi- pacity to conduct an eligible activity under returns; ents, regarding assistance from the afford- (g), as evidenced by its ability to— ‘‘(B) by regulation, provide that, except as able housing fund grant amounts of the ‘‘(A) own, construct or rehabilitate, man- provided in subparagraph (C), affordable grantee, which shall include— age, and operate an affordable multifamily housing fund grant amounts of a grantee ‘‘(I) appropriate continuing financial and rental housing development; may not be used for administrative, out- project reporting, record retention, and ‘‘(B) design, construct or rehabilitate, and reach, or other costs of— audit requirements for the duration of the market affordable housing for homeowner- ‘‘(i) the grantee; or grant to the recipient to ensure compliance ship; ‘‘(ii) any recipient of such grant amounts; with the limitations and requirements of ‘‘(C) provide forms of assistance, such as and this section and the regulations under this downpayments, closing costs, or interest- ‘‘(C) by regulation, limit the amount of section; and rate buy-downs, for purchasers; or any affordable housing fund grant amounts ‘‘(II) any other requirements that the Di- ‘‘(D) construct related public infrastruc- of the grantee for a year that may be used rector determines are necessary to ensure ture development activities in connection for administrative costs of the grantee of appropriate grant administration and com- with such housing activities; carrying out the program required under this pliance. ‘‘(2) demonstrates the ability and financial section to a percentage of such grant ‘‘(B) MISUSE OF FUNDS.— capacity to undertake, comply, and manage amounts of the grantee for such year, which ‘‘(i) REIMBURSEMENT REQUIREMENT.—If any the eligible activity; may not exceed 10 percent. recipient of assistance from affordable hous- ‘‘(3) demonstrates its familiarly with the ‘‘(7) PROHIBITION OF CONSIDERATION OF USE ing fund grant amounts of a grantee is deter- requirements of any other Federal, State or FOR MEETING HOUSING GOALS OR DUTY TO mined, in accordance with clause (ii), to local housing program that will be used in SERVE.—In determining compliance with the have used any such amounts in a manner conjunction with such grant amounts to en- housing goals under this subpart and the that is materially in violation of this sec- sure compliance with all applicable require- duty to serve underserved markets under tion, the regulations issued under this sec- ments and regulations of such programs; and section 1335, the Director may not consider tion, or any requirements or conditions ‘‘(4) makes such assurances to the grantee any affordable housing fund grant amounts under which such amounts were provided, as the Director shall, by regulation, require used under this section for eligible activities the grantee shall require that, within 12 to ensure that the recipient will comply with under subsection (g). The Director shall give months after the determination of such mis- the requirements of this section during the credit toward the achievement of such hous- use, the recipient shall reimburse the grant- entire period that begins upon selection of ing goals and such duty to serve underserved ee for such misused amounts and return to the recipient to receive such grant amounts markets to purchases by the enterprises of the grantee any amounts from the affordable and ending upon the conclusion of all activi- mortgages for housing that receives funding housing fund grant amounts of the grantee ties under subsection (g) that are engaged in from affordable housing fund grant amounts, that remain unused or uncommitted for use. by the recipient and funded with such grant but only to the extent that such purchases The remedies under this clause are in addi- amounts. by the enterprises are funded other than tion to any other remedies that may be ‘‘(i) LIMITATIONS ON USE.— with such grant amounts. available under law. ‘‘(1) REQUIRED AMOUNT FOR REFCORP.—Of ‘‘(8) ACCEPTABLE IDENTIFICATION REQUIRE- ‘‘(ii) DETERMINATION.—A determination is the aggregate amount allocated pursuant to MENT FOR OCCUPANCY OR ASSISTANCE.— made in accordance with this clause if the subsection (b) in each year to the affordable ‘‘(A) IN GENERAL.—Any assistance provided determination is— housing fund, 25 percent shall be used as pro- with any affordable housing grant amounts ‘‘(I) made by the Director; or vided in section 21B(f)(2)(E) of the Federal may not be made available to, or on behalf ‘‘(II)(aa) made by the grantee; Home Loan Bank Act (12 U.S.C. of, any individual or household unless the in- ‘‘(bb) the grantee provides notification of 1441b(f)(2)(E)). dividual provides, or, in the case of a house- the determination to the Director for review, ‘‘(2) REQUIRED AMOUNT FOR HOMEOWNERSHIP hold, all adult members of the household in the discretion of the Director, of the de- ACTIVITIES.—Of the aggregate amount of af- provide, personal identification in one of the termination; and fordable housing fund grant amounts pro- following forms: ‘‘(cc) the Director does not subsequently vided in each year to a grantee, not less than ‘‘(i) SOCIAL SECURITY CARD WITH PHOTO reverse the determination. 10 percent shall be used for activities under IDENTIFICATION CARD OR REAL ID ACT IDENTI- ‘‘(2) GRANTEES.— paragraph (2) of subsection (g). FICATION.— ‘‘(A) REPORT.—

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‘‘(i) IN GENERAL.—The Director shall re- such term includes any family that resides other than under this title for use only for quire each grantee receiving affordable hous- in a rural area that has an income that does grants to provide affordable rental housing ing fund grant amounts for a year to submit not exceed the poverty line (as such term is and affordable homeownership opportunities, a report, for such year, to the Director defined in section 673(2) of the Omnibus and the subsequent year is a year referred to that— Budget Reconciliation Act of 1981 (42 U.S.C. in subsection (b)(1), the Director shall in ‘‘(I) describes the activities funded under 9902(2)), including any revision required by such subsequent year and any remaining this section during such year with the af- such section) applicable to a family of the years referred to in subsection (b)(1) transfer fordable housing fund grant amounts of the size involved. to such affordable housing trust fund the ag- grantee; and ‘‘(m) REGULATIONS.— gregate amount allocated pursuant to sub- ‘‘(II) the manner in which the grantee com- ‘‘(1) IN GENERAL.—The Director, in con- section (b) in such year to the affordable plied during such year with the allocation sultation with the Secretary of Housing and housing fund under this section, less any plan established pursuant to subsection (e) Urban Development, shall issue regulations amounts used pursuant to subsection (i)(1). for the grantee. to carry out this section. For such subsequent and remaining years, ‘‘(ii) PUBLIC AVAILABILITY.—The Director ‘‘(2) REQUIRED CONTENTS.—The regulations the provisions of subsections (c) and (d) shall shall make such reports pursuant to this issued under this subsection shall include— not apply. Notwithstanding any other provi- subparagraph publicly available. ‘‘(A) a requirement that the Director en- sion of law, assistance provided using ‘‘(B) MISUSE OF FUNDS.—If the Director de- sure that the program of each grantee for amounts transferred to such affordable hous- termines, after reasonable notice and oppor- use of affordable housing fund grant amounts ing trust fund pursuant to this subsection tunity for hearing, that a grantee has failed of the grantee is audited not less than annu- may not be used for any of the activities to comply substantially with any provision ally to ensure compliance with this section; specified in clauses (i) through (vi) of sub- of this section and until the Director is sat- ‘‘(B) authority for the Director to audit, section (i)(6). Nothing in this subsection isfied that there is no longer any such failure provide for an audit, or otherwise verify a shall be construed to alter the terms and to comply, the Director shall— grantee’s activities, to ensure compliance conditions of the affordable housing fund ‘‘(i) reduce the amount of assistance under with this section; under this section or to extend the life of this section to the grantee by an amount ‘‘(C) requirements for a process for applica- such fund. equal to the amount affordable housing fund tion to, and selection by, each grantee for ‘‘(p) FUNDING ACCOUNTABILITY AND TRANS- grant amounts which were not used in ac- activities meeting the grantee’s priority PARENCY.—Any grant under this section to a cordance with this section; housing needs to be funded with affordable grantee from the affordable housing fund es- tablished under subsection (a), any assist- ‘‘(ii) require the grantee to repay the Di- housing fund grant amounts of the grantee, ance provided to a recipient by a grantee rector an amount equal to the amount of the which shall provide for priority in funding to from affordable housing fund grant amounts, amount affordable housing fund grant be based upon— and any grant, award, or other assistance amounts which were not used in accordance ‘‘(i) greatest impact; from an affordable housing trust fund re- with this section; ‘‘(ii) geographic diversity; ferred to in subsection (o) shall be considered ‘‘(iii) limit the availability of assistance ‘‘(iii) ability to obligate amounts and un- a Federal award for purposes of the Federal under this section to the grantee to activi- dertake activities so funded in a timely man- Funding Accountability and Transparency ties or recipients not affected by such failure ner; Act of 2006 (31 U.S.C. 6101 note). Upon the re- to comply; or ‘‘(iv) in the case of rental housing projects quest of the Director of the Office of Manage- ‘‘(iv) terminate any assistance under this under subsection (g)(1), the extent to which ment and Budget, the Director of the Federal section to the grantee. rents for units in the project funded are af- Housing Finance Agency shall obtain and ‘‘(k) CAPITAL REQUIREMENTS.—The utiliza- fordable, especially for extremely low-in- provide such information regarding any such tion or commitment of amounts from the af- come families; grants, assistance, and awards as the Direc- fordable housing fund shall not be subject to ‘‘(v) in the case of rental housing projects tor of the Office of Management and Budget the risk-based capital requirements estab- under subsection (g)(1), the extent of the du- considers necessary to comply with the re- lished pursuant to section 1361(a). ration for which such rents will remain af- quirements of such Act, as applicable pursu- ‘‘(l) DEFINITIONS.—For purposes of this sec- fordable; ant to the preceding sentence.’’. tion, the following definitions shall apply: ‘‘(vi) the extent to which the application (b) TIMELY ESTABLISHMENT OF AFFORDABLE ‘‘(1) AFFORDABLE HOUSING FUND GRANT makes use of other funding sources; and HOUSING NEEDS FORMULA.— AMOUNTS.—The term ‘affordable housing fund ‘‘(vii) the merits of an applicant’s proposed (1) IN GENERAL.—The Secretary of Housing grant amounts’ means amounts from the af- eligible activity; and Urban Development shall, not later than fordable housing fund established under sub- ‘‘(D) requirements to ensure that amounts the effective date under section 365 of this section (a) that are provided to a grantee provided to a grantee from the affordable title, issue the regulations establishing the pursuant to subsection (d)(3). housing fund that are used for rental housing affordable housing needs formulas in accord- ‘‘(2) GRANTEE.—The term ‘grantee’ means— under subsection (g)(1) are used only for the ance with the provisions of section 1337(c)(2) ‘‘(A) with respect to 2008, the Louisiana benefit of extremely low- and very-low in- of the Housing and Community Development Housing Finance Agency and the Mississippi come families; Act of 1992, as such section is amended by Development Authority; and ‘‘(E) limitations on public infrastructure subsection (a) of this section. ‘‘(B) with respect to the years referred to development activities that are eligible pur- (2) EFFECTIVE DATE.—This subsection shall in subsection (b)(1), other than 2008, each suant to subsection (g)(3) for funding with af- take effect on the date of the enactment of State (as such term is defined in section 1303) fordable housing fund grant amounts and re- this Act. and each federally recognized Indian tribe. quirements for the connection between such (c) REFCORP PAYMENTS.—Section 21B(f)(2) ‘‘(3) RECIPIENT.—The term ‘recipient’ activities and housing activities funded of the Federal Home Loan Bank Act (12 means an entity meeting the requirements under paragraph (1) or (2) of subsection (g); U.S.C. 1441b(f)(2)) is amended— under subsection (h) that receives assistance and (1) in subparagraph (E), by striking ‘‘and from a grantee from affordable housing fund ‘‘(F) requirements and standards for estab- (D)’’ and inserting ‘‘(D), and (E)’’; grant amounts of the grantee. lishment, by grantees (including the grant- (2) by redesignating subparagraph (E) as ‘‘(4) TOTAL MORTGAGE PORTFOLIO.—The ees for 2008 pursuant to subsection (l)(2)(A)), subparagraph (F); and term ‘total mortgage portfolio’ means, with of performance goals, benchmarks, and time- (3) by inserting after subparagraph (D) the respect to a year, the sum, for all mortgages tables for the production, preservation, and following new subparagraph: outstanding during that year in any form, rehabilitation of affordable rental and home- ‘‘(E) PAYMENTS BY FANNIE MAE AND FREDDIE including whole loans, mortgage-backed se- ownership housing with affordable housing MAC.—To the extent that the amounts avail- curities, participation certificates, or other fund grant amounts. able pursuant to subparagraphs (A), (B), (C), structured securities backed by mortgages, ‘‘(n) ENFORCEMENT OF REQUIREMENTS ON and (D) are insufficient to cover the amount of the dollar amount of the unpaid out- ENTERPRISE.—Compliance by the enterprises of interest payments, each enterprise (as standing principal balances under such mort- with the requirements under this section such term is defined in section 1303 of the gages. Such term includes all such mort- shall be enforceable under subpart C. Any Housing and Community Development Act of gages or securitized obligations, whether re- reference in such subpart to this part or to 1992 (42 U.S.C. 4502)) shall transfer to the tained in portfolio, or sold in any form. The an order, rule, or regulation under this part Funding Corporation in each calendar year Director is authorized to promulgate rules specifically includes this section and any the amounts allocated for use under this sub- further defining such term as necessary to order, rule, or regulation under this section. paragraph pursuant to section 1337(i)(1) of implement this section and to address mar- ‘‘(o) AFFORDABLE HOUSING TRUST FUND.—If, such Act.’’. ket developments. after the enactment of the Federal Housing (d) GAO REPORT.—The Comptroller Gen- ‘‘(5) VERY-LOW INCOME FAMILY.—The term Finance Reform Act of 2008, in any year, eral shall conduct a study to determine the ‘very low-income family’ has the meaning there is enacted any provision of Federal law effects that the affordable housing fund es- given such term in section 1303, except that establishing an affordable housing trust fund tablished under section 1337 of the Housing

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Not later than the expiration of subsection (a) and inserting the following (2) by inserting ‘‘or request that the Attor- the 12-month period beginning on the date of new subsection: ney General of the United States bring such the enactment of this Act, the Comptroller ‘‘(a) ENFORCEMENT.—The Director may, in an action,’’ after ‘‘District of Columbia,’’. General shall submit a report to the Con- the discretion of the Director, apply to the (e) CONFORMING AMENDMENT.—The heading gress setting forth the results and conclu- United States District Court for the District for subpart C of part 2 of subtitle A of title sions of such study. This subsection shall of Columbia, or the United States district XIII of the Housing and Community Develop- take effect on the date of the enactment of court within the jurisdiction of which the ment Act of 1992 is amended to read as fol- lows: this Act. headquarters of the enterprise is located, for SEC. 341. CONSISTENCY WITH MISSION. the enforcement of any effective and out- ‘‘Subpart C—Enforcement’’. Subpart B of part 2 of subtitle A of title standing notice or order issued under section SEC. 343. CONFORMING AMENDMENTS. XIII of the Housing and Community Develop- 1341 or 1345, or request that the Attorney Part 2 of subtitle A of title XIII of the ment Act of 1992 (12 U.S.C. 4561 et seq.) is General of the United States bring such an Housing and Community Development Act of amended by adding after section 1337, as action. Such court shall have jurisdiction 1992 (12 U.S.C. 4541 et seq.) is amended— added by the preceding provisions of this and power to order and require compliance (1) by striking ‘‘Secretary’’ each place such title, the following new section: with such notice or order.’’. term appears in such part and inserting ‘‘Di- ‘‘SEC. 1338. CONSISTENCY WITH MISSION. (c) CIVIL MONEY PENALTIES.—Section 1345 rector’’; ‘‘This subpart may not be construed to au- of the Housing and Community Development (2) in the section heading for section 1323 thorize an enterprise to engage in any pro- Act of 1992 (12 U.S.C. 4585) is amended— (12 U.S.C. 4543), by inserting ‘‘of enterprises’’ gram or activity that contravenes or is in- (1) by striking subsections (a) and (b) and before the period at the end; consistent with the Federal National Mort- inserting the following new subsections: (3) by striking section 1327 (12 U.S.C. 4547); gage Association Charter Act or the Federal ‘‘(a) AUTHORITY.—The Director may impose (4) by striking section 1328 (12 U.S.C. 4548); Home Loan Mortgage Corporation Act.’’. a civil money penalty, in accordance with (5) by redesignating section 1329 (as amend- SEC. 342. ENFORCEMENT. the provisions of this section, on any enter- ed by section 335) as section 1327; (a) CEASE-AND-DESIST PROCEEDINGS.—Sec- prise that has failed to— (6) in sections 1345(c)(1)(A), 1346(a), and tion 1341 of the Housing and Community De- ‘‘(1) meet any housing goal established 1346(b) (12 U.S.C. 4585(c)(1)(A), 4586(a), and velopment Act of 1992 (12 U.S.C. 4581) is under subpart B, following a written notice 4586(b)), by striking ‘‘Secretary’s’’ each place amended— and determination of such failure in accord- such term appears and inserting ‘‘Direc- (1) by striking subsection (a) and inserting ance with section 1336(b); tor’s’’; and the following new subsection: ‘‘(2) submit a report under section 1314, fol- (7) by striking section 1349 (12 U.S.C. 4589). ‘‘(a) GROUNDS FOR ISSUANCE.—The Director lowing a notice of such failure, an oppor- CHAPTER 3—PROMPT CORRECTIVE may issue and serve a notice of charges tunity for comment by the enterprise, and a ACTION under this section upon an enterprise if the final determination by the Director; SEC. 345. CAPITAL CLASSIFICATIONS. Director determines— ‘‘(3) submit the information required under (a) IN GENERAL.—Section 1364 of the Hous- ‘‘(1) the enterprise has failed to meet any subsection (m) or (n) of section 309 of the ing and Community Development Act of 1992 housing goal established under subpart B, Federal National Mortgage Association (12 U.S.C. 4614) is amended— following a written notice and determination Charter Act, or subsection (e) or (f) of sec- (1) in the heading for subsection (a), by of such failure in accordance with section tion 307 of the Federal Home Loan Mortgage striking ‘‘IN GENERAL’’ and inserting ‘‘EN- 1336; Corporation Act; TERPRISES’’. ‘‘(2) the enterprise has failed to submit a ‘‘(4) comply with any provision of this part (2) in subsection (c)— report under section 1314, following a notice or any order, rule or regulation under this (A) by striking ‘‘subsection (b)’’ and insert- of such failure, an opportunity for comment part; ing ‘‘subsection (c)’’; by the enterprise, and a final determination ‘‘(5) submit a housing plan pursuant to sec- (B) by striking ‘‘enterprises’’ and inserting by the Director; tion 1336(c) within the required period; or ‘‘regulated entities’’; and ‘‘(3) the enterprise has failed to submit the ‘‘(6) comply with a housing plan for the en- (C) by striking the last sentence; information required under subsection (m) or terprise under section 1336(c). (3) by redesignating subsections (c) (as so (n) of section 309 of the Federal National ‘‘(b) AMOUNT OF PENALTY.—The amount of amended by paragraph (2) of this subsection) Mortgage Association Charter Act, or sub- the penalty, as determined by the Director, and (d) as subsections (d) and (f), respec- section (e) or (f) of section 307 of the Federal may not exceed— tively; Home Loan Mortgage Corporation Act; ‘‘(1) for any failure described in paragraph (4) by striking subsection (b) and inserting ‘‘(4) the enterprise has violated any provi- (1), (5), or (6) of subsection (a), $50,000 for the following new subsections: sion of this part or any order, rule or regula- each day that the failure occurs; and ‘‘(b) FEDERAL HOME LOAN BANKS.— tion under this part; ‘‘(2) for any failure described in paragraph ‘‘(1) ESTABLISHMENT AND CRITERIA.—For ‘‘(5) the enterprise has failed to submit a (2), (3), or (4) of subsection (a), $20,000 for purposes of this subtitle, the Director shall, housing plan that complies with section each day that the failure occurs.’’; by regulation— 1336(c) within the applicable period; or (2) in subsection (c)— ‘‘(A) establish the capital classifications ‘‘(6) the enterprise has failed to comply (A) in paragraph (1)— specified under paragraph (2) for the Federal with a housing plan under section 1336(c).’’; (i) in subparagraph (A), by inserting ‘‘and’’ home loan banks; (2) in subsection (b)(2), by striking ‘‘requir- after the semicolon at the end; ‘‘(B) establish criteria for each such capital ing the enterprise to’’ and all that follows (ii) in subparagraph (B), by striking ‘‘; classification based on the amount and types through the end of the paragraph and insert- and’’ and inserting a period; and of capital held by a bank and the risk-based, ing the following: ‘‘requiring the enterprise (iii) by striking subparagraph (C); and minimum, and critical capital levels for the to— (B) in paragraph (2), by inserting after the banks and taking due consideration of the ‘‘(A) comply with the goal or goals; period at the end the following: ‘‘In deter- capital classifications established under sub- ‘‘(B) submit a report under section 1314; mining the penalty under subsection (a)(1), section (a) for the enterprises, with such ‘‘(C) comply with any provision this part the Director shall give consideration to the modifications as the Director determines to or any order, rule or regulation under such length of time the enterprise should reason- be appropriate to reflect the difference in op- part; ably take to achieve the goal.’’; erations between the banks and the enter- ‘‘(D) submit a housing plan in compliance (3) in the first sentence of subsection (d)— prises; and with section 1336(c); (A) by striking ‘‘request the Attorney Gen- ‘‘(C) shall classify the Federal home loan ‘‘(E) comply with a housing plan submitted eral of the United States to’’ and inserting ‘‘, banks according to such capital classifica- under section 1336(c); or in the discretion of the Director,’’; and tions.

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‘‘(2) CLASSIFICATIONS.—The capital classi- (B) by inserting before paragraph (2), as so (C) by redesignating paragraphs (5) and (6) fications specified under this paragraph are— redesignated by subparagraph (A) of this as paragraphs (6) and (7), respectively; ‘‘(A) adequately capitalized; paragraph, the following paragraph: (D) by inserting after paragraph (4) the fol- ‘‘(B) undercapitalized; ‘‘(1) REQUIRED MONITORING.—The Director lowing new paragraph: ‘‘(C) significantly undercapitalized; and shall— ‘‘(5) IMPROVEMENT OF MANAGEMENT.—Take ‘‘(D) critically undercapitalized. ‘‘(A) closely monitor the condition of any one or more of the following actions: ‘‘(c) DISCRETIONARY CLASSIFICATION.— regulated entity that is classified as under- ‘‘(A) NEW ELECTION OF BOARD.—Order a new ‘‘(1) GROUNDS FOR RECLASSIFICATION.—The capitalized; election for the board of directors of the reg- Director may reclassify a regulated entity ‘‘(B) closely monitor compliance with the ulated entity. under paragraph (2) if— capital restoration plan, restrictions, and re- ‘‘(B) DISMISSAL OF DIRECTORS OR EXECUTIVE ‘‘(A) at any time, the Director determines quirements imposed under this section; and OFFICERS.—Require the regulated entity to in writing that the regulated entity is engag- ‘‘(C) periodically review the plan, restric- dismiss from office any director or executive ing in conduct that could result in a rapid tions, and requirements applicable to the officer who had held office for more than 180 depletion of core or total capital or, in the undercapitalized regulated entity to deter- days immediately before the entity became case of an enterprise, that the value of the mine whether the plan, restrictions, and re- undercapitalized. Dismissal under this sub- property subject to mortgages held or quirements are achieving the purpose of this paragraph shall not be construed to be a re- securitized by the enterprise has decreased section.’’; and moval pursuant to the Director’s enforce- significantly; (C) by inserting at the end the following ment powers provided in section 1377. ‘‘(B) after notice and an opportunity for new paragraphs: ‘‘(C) EMPLOY QUALIFIED EXECUTIVE OFFI- hearing, the Director determines that the ‘‘(4) RESTRICTION OF ASSET GROWTH.—A reg- CERS.—Require the regulated entity to em- regulated entity is in an unsafe or unsound ulated entity that is classified as under- ploy qualified executive officers (who, if the condition; or capitalized shall not permit its average total Director so specifies, shall be subject to ap- ‘‘(C) pursuant to section 1371(b), the Direc- assets (as such term is defined in section proval by the Director).’’; and tor deems the regulated entity to be engag- 1316(b) during any calendar quarter to exceed (E) by inserting at the end the following ing in an unsafe or unsound practice. its average total assets during the preceding new paragraph: ‘‘(2) RECLASSIFICATION.—In addition to any calendar quarter unless— ‘‘(8) OTHER ACTION.—Require the regulated other action authorized under this title, in- ‘‘(A) the Director has accepted the capital entity to take any other action that the Di- cluding the reclassification of a regulated restoration plan of the regulated entity; rector determines will better carry out the entity for any reason not specified in this ‘‘(B) any increase in total assets is con- purpose of this section than any of the ac- subsection, if the Director takes any action sistent with the plan; and tions specified in this paragraph.’’; described in paragraph (1) the Director may ‘‘(C) the ratio of total capital to assets for (4) by redesignating subsection (c) as sub- classify a regulated entity— the regulated entity increases during the section (d); and ‘‘(A) as undercapitalized, if the regulated calendar quarter at a rate sufficient to en- (5) by inserting after subsection (b) the fol- entity is otherwise classified as adequately able the entity to become adequately cap- lowing new subsection: ‘‘(c) RESTRICTION ON COMPENSATION OF EX- capitalized; italized within a reasonable time. ECUTIVE OFFICERS.—A regulated entity that RIOR APPROVAL OF ACQUISITIONS, NEW ‘‘(B) as significantly undercapitalized, if ‘‘(5) P is classified as significantly undercapitalized the regulated entity is otherwise classified PRODUCTS, AND NEW ACTIVITIES.—A regulated may not, without prior written approval by as undercapitalized; and entity that is classified as undercapitalized the Director— ‘‘(C) as critically undercapitalized, if the shall not, directly or indirectly, acquire any ‘‘(1) pay any bonus to any executive offi- regulated entity is otherwise classified as interest in any entity or initially offer any cer; or significantly undercapitalized.’’; and new product (as such term is defined in sec- ‘‘(2) provide compensation to any executive (5) by inserting after subsection (d) (as so tion 1321(f)) or engage in any new activity, officer at a rate exceeding that officer’s av- redesignated by paragraph (3) of this sub- service, undertaking, or offering unless— erage rate of compensation (excluding bo- section), the following new subsection: ‘‘(A) the Director has accepted the capital nuses, stock options, and profit sharing) dur- ‘‘(e) RESTRICTION ON CAPITAL DISTRIBU- restoration plan of the regulated entity, the ing the 12 calendar months preceding the cal- TIONS.— entity is implementing the plan, and the Di- endar month in which the regulated entity ‘‘(1) IN GENERAL.—A regulated entity shall rector determines that the proposed action is became undercapitalized.’’. make no capital distribution if, after making consistent with and will further the achieve- SEC. 348. AUTHORITY OVER CRITICALLY UNDER- the distribution, the regulated entity would ment of the plan; or CAPITALIZED REGULATED ENTITIES. be undercapitalized. ‘‘(B) the Director determines that the pro- (a) IN GENERAL.—Section 1367 of the Hous- ‘‘(2) EXCEPTION.—Notwithstanding para- posed action will further the purpose of this ing and Community Development Act of 1992 graph (1), the Director may permit a regu- section.’’; (12 U.S.C. 4617) is amended to read as follows: lated entity, to the extent appropriate or ap- (3) in the subsection heading for subsection ‘‘SEC. 1367. AUTHORITY OVER CRITICALLY plicable, to repurchase, redeem, retire, or (b), by striking ‘‘FROM UNDERCAPITALIZED TO UNDERCAPITALIZED REGULATED otherwise acquire shares or ownership inter- SIGNIFICANTLY UNDERCAPITALIZED’’; and ENTITIES. ests if the repurchase, redemption, retire- (4) by striking subsection (c) and inserting ‘‘(a) APPOINTMENT OF AGENCY AS CONSER- ment, or other acquisition— the following new subsection: VATOR OR RECEIVER.— ‘‘(A) is made in connection with the ‘‘(c) OTHER DISCRETIONARY SAFEGUARDS.— ‘‘(1) IN GENERAL.—Notwithstanding any issuance of additional shares or obligations The Director may take, with respect to a other provision of Federal or State law, if of the regulated entity in at least an equiva- regulated entity that is classified as under- any of the grounds under paragraph (3) exist, lent amount; and capitalized, any of the actions authorized to at the discretion of the Director, the Direc- ‘‘(B) will reduce the financial obligations be taken under section 1366 with respect to a tor may establish a conservatorship or re- of the regulated entity or otherwise improve regulated entity that is classified as signifi- ceivership, as appropriate, for the purpose of the financial condition of the entity.’’. cantly undercapitalized, if the Director de- reorganizing, rehabilitating, or winding up (b) REGULATIONS.—Not later than the expi- termines that such actions are necessary to the affairs of a regulated entity. ration of the 180-day period beginning on the carry out the purpose of this subtitle.’’. ‘‘(2) APPOINTMENT.—In any conservatorship effective date under section 365, the Director SEC. 347. SUPERVISORY ACTIONS APPLICABLE or receivership established under this sec- of the Federal Housing Finance Agency shall TO SIGNIFICANTLY UNDERCAPITAL- tion, the Director shall appoint the Agency issue regulations to carry out section 1364(b) IZED REGULATED ENTITIES. as conservator or receiver. of the Housing and Community Development Section 1366 of the Housing and Commu- ‘‘(3) GROUNDS FOR APPOINTMENT.—The Act of 1992 (as added by paragraph (4) of this nity Development Act of 1992 (12 U.S.C. 4616) grounds for appointing a conservator or re- subsection), relating to capital classifica- is amended— ceiver for a regulated entity are as follows: tions for the Federal home loan banks. (1) in the section heading, by striking ‘‘en- ‘‘(A) ASSETS INSUFFICIENT FOR OBLIGA- SEC. 346. SUPERVISORY ACTIONS APPLICABLE terprises’’ and inserting ‘‘regulated entities’’; TIONS.—The assets of the regulated entity TO UNDERCAPITALIZED REGULATED (2) in subsection (a)(2)(A), by striking ‘‘en- are less than the obligations of the regulated ENTITIES. terprise’’ the last place such term appears; entity to its creditors and others. Section 1365 of the Housing and Commu- (3) in subsection (b)— ‘‘(B) SUBSTANTIAL DISSIPATION.—Substan- nity Development Act of 1992 (12 U.S.C. 4615) (A) in the subsection heading, by striking tial dissipation of assets or earnings due to— is amended— ‘‘DISCRETIONARY SUPERVISORY ACTIONS’’ and ‘‘(i) any violation of any provision of Fed- (1) in the section heading, by striking ‘‘en- inserting ‘‘SPECIFIC ACTIONS’’. eral or State law; or terprises’’ and inserting ‘‘regulated entities’’; (B) in the matter preceding paragraph (1), ‘‘(ii) any unsafe or unsound practice. (2) in subsection (a)— by striking ‘‘may, at any time, take any’’ ‘‘(C) UNSAFE OR UNSOUND CONDITION.—An (A) by redesignating paragraphs (1) and (2) and inserting ‘‘shall carry out this section unsafe or unsound condition to transact as paragraphs (2) and (3), respectively; by taking, at any time, one or more’’; business.

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‘‘(D) CEASE-AND-DESIST ORDERS.—Any will- ‘‘(i) not later than 30 calendar days after ‘‘(C) FUNCTIONS OF OFFICERS, DIRECTORS, ful violation of a cease-and-desist order that the regulated entity initially becomes criti- AND SHAREHOLDERS OF A REGULATED ENTITY.— has become final. cally undercapitalized; and The Agency may, by regulation or order, ‘‘(E) CONCEALMENT.—Any concealment of ‘‘(ii) at least once during each succeeding provide for the exercise of any function by the books, papers, records, or assets of the 30-calendar day period. any stockholder, director, or officer of any regulated entity, or any refusal to submit ‘‘(C) DETERMINATION NOT REQUIRED IF RE- regulated entity for which the Agency has the books, papers, records, or affairs of the CEIVERSHIP ALREADY IN PLACE.—Subpara- been named conservator or receiver. regulated entity, for inspection to any exam- graph (B) shall not apply with respect to a ‘‘(D) POWERS AS CONSERVATOR.—The Agen- iner or to any lawful agent of the Director. regulated entity in any period during which cy may, as conservator, take such action as ‘‘(F) INABILITY TO MEET OBLIGATIONS.—The the Agency serves as receiver for the regu- may be— regulated entity is likely to be unable to pay lated entity. ‘‘(i) necessary to put the regulated entity its obligations or meet the demands of its ‘‘(D) RECEIVERSHIP TERMINATES CON- in a sound and solvent condition; and creditors in the normal course of business. SERVATORSHIP.—The appointment under this ‘‘(ii) appropriate to carry on the business ‘‘(G) LOSSES.—The regulated entity has in- section of the Agency as receiver of a regu- of the regulated entity and preserve and con- curred or is likely to incur losses that will lated entity shall immediately terminate serve the assets and property of the regu- deplete all or substantially all of its capital, any conservatorship established under this lated entity, including, if two or more Fed- and there is no reasonable prospect for the title for the regulated entity. eral home loan banks have been placed in regulated entity to become adequately cap- ‘‘(5) JUDICIAL REVIEW.— conservatorship contemporaneously, merg- italized (as defined in section 1364(a)(1)). ‘‘(A) IN GENERAL.—If the Agency is ap- ing two or more such banks into a single ‘‘(H) VIOLATIONS OF LAW.—Any violation of pointed conservator or receiver under this Federal home loan bank. any law or regulation, or any unsafe or un- section, the regulated entity may, within 30 ‘‘(E) ADDITIONAL POWERS AS RECEIVER.—The sound practice or condition that is likely days of such appointment, bring an action in Agency may, as receiver, place the regulated to— the United States District Court for the judi- entity in liquidation and proceed to realize ‘‘(i) cause insolvency or substantial dis- cial district in which the principal place of upon the assets of the regulated entity, hav- sipation of assets or earnings; or business of such regulated entity is located, ing due regard to the conditions of the hous- ‘‘(ii) weaken the condition of the regulated or in the United States District Court for the ing finance market. entity. District of Columbia, for an order requiring ‘‘(F) ORGANIZATION OF NEW REGULATED EN- ‘‘(I) CONSENT.—The regulated entity, by the Agency to remove itself as conservator TITIES.—The Agency may, as receiver, orga- resolution of its board of directors or its or receiver. nize a successor regulated entity that will shareholders or members, consents to the ap- ‘‘(B) REVIEW.—Upon the filing of an action operate pursuant to subsection (i). pointment. under subparagraph (A), the court shall, ‘‘(G) TRANSFER OF ASSETS AND LIABIL- upon the merits, dismiss such action or di- ITIES.—The Agency may, as conservator or ‘‘(J) UNDERCAPITALIZATION.—The regulated entity is undercapitalized or significantly rect the Agency to remove itself as such con- receiver, transfer any asset or liability of the undercapitalized (as defined in section servator or receiver. regulated entity in default without any ap- 1364(a)(3) or in regulations issued pursuant to ‘‘(6) DIRECTORS NOT LIABLE FOR ACQUIESCING proval, assignment, or consent with respect IN APPOINTMENT OF CONSERVATOR OR RE- to such transfer. Any Federal home loan section 1364(b), as applicable), and— CEIVER.—The members of the board of direc- bank may, with the approval of the Agency, ‘‘(i) has no reasonable prospect of becom- tors of a regulated entity shall not be liable acquire the assets of any Bank in con- ing adequately capitalized; to the shareholders or creditors of the regu- servatorship or receivership, and assume the ‘‘(ii) fails to become adequately capital- lated entity for acquiescing in or consenting liabilities of such Bank. ized, as required by— in good faith to the appointment of the ‘‘(H) PAYMENT OF VALID OBLIGATIONS.—The ‘‘(I) section 1365(a)(1) with respect to an Agency as conservator or receiver for that Agency, as conservator or receiver, shall, to undercapitalized regulated entity; or regulated entity. the extent of proceeds realized from the per- ‘‘(II) section 1366(a)(1) with respect to a sig- ‘‘(7) AGENCY NOT SUBJECT TO ANY OTHER formance of contracts or sale of the assets of nificantly undercapitalized regulated entity; FEDERAL AGENCY.—When acting as conser- a regulated entity, pay all valid obligations ‘‘(iii) fails to submit a capital restoration vator or receiver, the Agency shall not be of the regulated entity in accordance with plan acceptable to the Agency within the subject to the direction or supervision of any the prescriptions and limitations of this sec- time prescribed under section 1369C; or other agency of the United States or any tion. ‘‘(iv) materially fails to implement a cap- State in the exercise of the rights, powers, ‘‘(I) SUBPOENA AUTHORITY.— ital restoration plan submitted and accepted and privileges of the Agency. ‘‘(i) IN GENERAL.— under section 1369C. ‘‘(b) POWERS AND DUTIES OF THE AGENCY AS ‘‘(I) IN GENERAL.—The Agency may, as con- ‘‘(K) CRITICAL UNDERCAPITALIZATION.—The CONSERVATOR OR RECEIVER.— servator or receiver, and for purposes of car- regulated entity is critically undercapital- ‘‘(1) RULEMAKING AUTHORITY OF THE AGEN- rying out any power, authority, or duty with ized, as defined in section 1364(a)(4) or in reg- CY.—The Agency may prescribe such regula- respect to a regulated entity (including de- ulations issued pursuant to section 1364(b), tions as the Agency determines to be appro- termining any claim against the regulated as applicable. priate regarding the conduct of entity and determining and realizing upon ‘‘(L) MONEY LAUNDERING.—The Attorney conservatorships or receiverships. any asset of any person in the course of col- General notifies the Director in writing that ‘‘(2) GENERAL POWERS.— lecting money due the regulated entity), ex- the regulated entity has been found guilty of ‘‘(A) SUCCESSOR TO REGULATED ENTITY.— ercise any power established under section a criminal offense under section 1956 or 1957 The Agency shall, as conservator or receiver, 1348. of title 18, United States Code, or section and by operation of law, immediately suc- ‘‘(II) APPLICABILITY OF LAW.—The provi- 5322 or 5324 of title 31, United States Code. ceed to— sions of section 1348 shall apply with respect ‘‘(4) MANDATORY RECEIVERSHIP.— ‘‘(i) all rights, titles, powers, and privileges to the exercise of any power exercised under ‘‘(A) IN GENERAL.—The Director shall ap- of the regulated entity, and of any stock- this subparagraph in the same manner as point the Agency as receiver for a regulated holder, officer, or director of such regulated such provisions apply under that section. entity if the Director determines, in writing, entity with respect to the regulated entity ‘‘(ii) AUTHORITY OF DIRECTOR.—A subpoena that— and the assets of the regulated entity; and or subpoena duces tecum may be issued ‘‘(i) the assets of the regulated entity are, ‘‘(ii) title to the books, records, and assets under clause (i) only by, or with the written and during the preceding 30 calendar days of any other legal custodian of such regu- approval of, the Director, or the designee of have been, less than the obligations of the lated entity. the Director. regulated entity to its creditors and others; ‘‘(B) OPERATE THE REGULATED ENTITY.—The ‘‘(iii) RULE OF CONSTRUCTION.—This sub- or Agency may, as conservator or receiver— section shall not be construed to limit any ‘‘(ii) the regulated entity is not, and during ‘‘(i) take over the assets of and operate the rights that the Agency, in any capacity, the preceding 30 calendar days has not been, regulated entity with all the powers of the might otherwise have under section 1317 or generally paying the debts of the regulated shareholders, the directors, and the officers 1379D. entity (other than debts that are the subject of the regulated entity and conduct all busi- ‘‘(J) CONTRACTING FOR SERVICES.—The of a bona fide dispute) as such debts become ness of the regulated entity; Agency may, as conservator or receiver, pro- due. ‘‘(ii) collect all obligations and money due vide by contract for the carrying out of any ‘‘(B) PERIODIC DETERMINATION REQUIRED FOR the regulated entity; of its functions, activities, actions, or duties CRITICALLY UNDER CAPITALIZED REGULATED ‘‘(iii) perform all functions of the regulated as conservator or receiver. ENTITY.—If a regulated entity is critically entity in the name of the regulated entity ‘‘(K) INCIDENTAL POWERS.—The Agency undercapitalized, the Director shall make a which are consistent with the appointment may, as conservator or receiver— determination, in writing, as to whether the as conservator or receiver; and ‘‘(i) exercise all powers and authorities regulated entity meets the criteria specified ‘‘(iv) preserve and conserve the assets and specifically granted to conservators or re- in clause (i) or (ii) of subparagraph (A)— property of such regulated entity. ceivers, respectively, under this section, and

VerDate Mar 15 2010 15:08 Nov 08, 2010 Jkt 069102 PO 00000 Frm 00064 Fmt 0688 Sfmt 0634 E:\BR08\H08MY8.002 H08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD 8208 CONGRESSIONAL RECORD—HOUSE, Vol. 154, Pt. 6 May 8, 2008 such incidental powers as shall be necessary graph (3)(C), which is proved to the satisfac- tinue an action commenced before the ap- to carry out such powers; and tion of the receiver. pointment of the receiver). ‘‘(ii) take any action authorized by this ‘‘(C) DISALLOWANCE OF CLAIMS FILED AFTER ‘‘(7) REVIEW OF CLAIMS.— section, which the Agency determines is in END OF FILING PERIOD.—Claims filed after the ‘‘(A) OTHER REVIEW PROCEDURES.— the best interests of the regulated entity or date specified in the notice published under ‘‘(i) IN GENERAL.—The Agency shall estab- the Agency. paragraph (3)(B)(i), or the date specified lish such alternative dispute resolution proc- ‘‘(3) AUTHORITY OF RECEIVER TO DETERMINE under paragraph (3)(C), shall be disallowed esses as may be appropriate for the resolu- CLAIMS.— and such disallowance shall be final. tion of claims filed under paragraph (5)(A)(i). ‘‘(A) IN GENERAL.—The Agency may, as re- ‘‘(D) AUTHORITY TO DISALLOW CLAIMS.— ‘‘(ii) CRITERIA.—In establishing alternative ceiver, determine claims in accordance with ‘‘(i) IN GENERAL.—The receiver may dis- dispute resolution processes, the Agency the requirements of this subsection and any allow any portion of any claim by a creditor shall strive for procedures which are expedi- regulations prescribed under paragraph (4). or claim of security, preference, or priority tious, fair, independent, and low cost. ‘‘(B) NOTICE REQUIREMENTS.—The receiver, which is not proved to the satisfaction of the ‘‘(iii) VOLUNTARY BINDING OR NONBINDING in any case involving the liquidation or receiver. PROCEDURES.—The Agency may establish winding up of the affairs of a closed regu- ‘‘(ii) PAYMENTS TO LESS THAN FULLY SE- both binding and nonbinding processes, lated entity, shall— CURED CREDITORS.—In the case of a claim of which may be conducted by any government ‘‘(i) promptly publish a notice to the credi- a creditor against a regulated entity which or private party. All parties, including the tors of the regulated entity to present their is secured by any property or other asset of claimant and the Agency, must agree to the claims, together with proof, to the receiver such regulated entity, the receiver— use of the process in a particular case. by a date specified in the notice which shall ‘‘(I) may treat the portion of such claim ‘‘(B) CONSIDERATION OF INCENTIVES.—The be not less than 90 days after the publication which exceeds an amount equal to the fair Agency shall seek to develop incentives for of such notice; and market value of such property or other asset claimants to participate in the alternative ‘‘(ii) republish such notice approximately 1 as an unsecured claim against the regulated dispute resolution process. month and 2 months, respectively, after the entity; and ‘‘(8) EXPEDITED DETERMINATION OF publication under clause (i). ‘‘(II) may not make any payment with re- CLAIMS.— ‘‘(C) MAILING REQUIRED.—The receiver shall spect to such unsecured portion of the claim ‘‘(A) ESTABLISHMENT REQUIRED.—The Agen- mail a notice similar to the notice published other than in connection with the disposi- cy shall establish a procedure for expedited under subparagraph (B)(i) at the time of such tion of all claims of unsecured creditors of relief outside of the routine claims process publication to any creditor shown on the the regulated entity. established under paragraph (5) for claimants books of the regulated entity— ‘‘(iii) EXCEPTIONS.—No provision of this who— ‘‘(i) at the last address of the creditor ap- paragraph shall apply with respect to any ex- ‘‘(i) allege the existence of legally valid pearing in such books; or tension of credit from any Federal Reserve and enforceable or perfected security inter- ‘‘(ii) upon discovery of the name and ad- Bank, Federal home loan bank, or the Treas- ests in assets of any regulated entity for dress of a claimant not appearing on the ury of the United States. which the Agency has been appointed re- ceiver; and books of the regulated entity within 30 days ‘‘(E) NO JUDICIAL REVIEW OF DETERMINATION ‘‘(ii) allege that irreparable injury will after the discovery of such name and ad- PURSUANT TO SUBPARAGRAPH (d).—No court occur if the routine claims procedure is fol- dress. may review the determination of the Agency lowed. ‘‘(4) RULEMAKING AUTHORITY RELATING TO under subparagraph (D) to disallow a claim. ‘‘(B) DETERMINATION PERIOD.—Before the DETERMINATION OF CLAIMS.—Subject to sub- This subparagraph shall not affect the au- end of the 90-day period beginning on the section (c), the Director may prescribe regu- thority of a claimant to obtain de novo judi- date any claim is filed in accordance with lations regarding the allowance or disallow- cial review of a claim pursuant to paragraph the procedures established under subpara- ance of claims by the receiver and providing (6). graph (A), the Director shall— for administrative determination of claims ‘‘(F) LEGAL EFFECT OF FILING.— ‘‘(i) determine— and review of such determination. ‘‘(i) STATUTE OF LIMITATION TOLLED.—For ‘‘(I) whether to allow or disallow such ROCEDURES FOR DETERMINATION OF purposes of any applicable statute of limita- ‘‘(5) P claim; or CLAIMS.— tions, the filing of a claim with the receiver ‘‘(II) whether such claim should be deter- ‘‘(A) DETERMINATION PERIOD.— shall constitute a commencement of an ac- mined pursuant to the procedures estab- ‘‘(i) IN GENERAL.—Before the end of the 180- tion. lished under paragraph (5); and day period beginning on the date on which ‘‘(ii) NO PREJUDICE TO OTHER ACTIONS.—Sub- ‘‘(ii) notify the claimant of the determina- any claim against a regulated entity is filed ject to paragraph (10), the filing of a claim tion, and if the claim is disallowed, provide with the Agency as receiver, the Agency with the receiver shall not prejudice any a statement of each reason for the disallow- shall determine whether to allow or disallow right of the claimant to continue any action ance and the procedure for obtaining agency the claim and shall notify the claimant of which was filed before the date of the ap- review or judicial determination. any determination with respect to such pointment of the receiver, subject to the de- ‘‘(C) PERIOD FOR FILING OR RENEWING claim. termination of claims by the receiver. SUIT.—Any claimant who files a request for ‘‘(ii) EXTENSION OF TIME.—The period de- ‘‘(6) PROVISION FOR JUDICIAL DETERMINATION expedited relief shall be permitted to file a scribed in clause (i) may be extended by a OF CLAIMS.— suit, or to continue a suit filed before the ap- written agreement between the claimant and ‘‘(A) IN GENERAL.—The claimant may file pointment of the receiver, seeking a deter- the Agency. suit on a claim (or continue an action com- mination of the rights of the claimant with ‘‘(iii) MAILING OF NOTICE SUFFICIENT.—The menced before the appointment of the re- respect to such security interest after the notification requirements of clause (i) shall ceiver) in the district or territorial court of earlier of— be deemed to be satisfied if the notice of any the United States for the district within ‘‘(i) the end of the 90-day period beginning determination with respect to any claim is which the principal place of business of the on the date of the filing of a request for expe- mailed to the last address of the claimant regulated entity is located or the United dited relief; or which appears— States District Court for the District of Co- ‘‘(ii) the date the Agency denies the claim. ‘‘(I) on the books of the regulated entity; lumbia (and such court shall have jurisdic- ‘‘(D) STATUTE OF LIMITATIONS.—If an action ‘‘(II) in the claim filed by the claimant; or tion to hear such claim), before the end of described under subparagraph (C) is not filed, ‘‘(III) in documents submitted in proof of the 60-day period beginning on the earlier or the motion to renew a previously filed the claim. of— suit is not made, before the end of the 30-day ‘‘(iv) CONTENTS OF NOTICE OF DISALLOW- ‘‘(i) the end of the period described in para- period beginning on the date on which such ANCE.—If any claim filed under clause (i) is graph (5)(A)(i) with respect to any claim action or motion may be filed under subpara- disallowed, the notice to the claimant shall against a regulated entity for which the graph (B), the claim shall be deemed to be contain— Agency is receiver; or disallowed as of the end of such period (other ‘‘(I) a statement of each reason for the dis- ‘‘(ii) the date of any notice of disallowance than any portion of such claim which was al- allowance; and of such claim pursuant to paragraph (5)(A)(i). lowed by the receiver), such disallowance ‘‘(II) the procedures available for obtaining ‘‘(B) STATUTE OF LIMITATIONS.—A claim shall be final, and the claimant shall have no agency review of the determination to dis- shall be deemed to be disallowed (other than further rights or remedies with respect to allow the claim or judicial determination of any portion of such claim which was allowed such claim. the claim. by the receiver), and such disallowance shall ‘‘(E) LEGAL EFFECT OF FILING.— ‘‘(B) ALLOWANCE OF PROVEN CLAIM.—The re- be final, and the claimant shall have no fur- ‘‘(i) STATUTE OF LIMITATION TOLLED.—For ceiver shall allow any claim received on or ther rights or remedies with respect to such purposes of any applicable statute of limita- before the date specified in the notice pub- claim, if the claimant fails, before the end of tions, the filing of a claim with the receiver lished under paragraph (3)(B)(i), or the date the 60-day period described under subpara- shall constitute a commencement of an ac- specified in the notice required under para- graph (A), to file suit on such claim (or con- tion.

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‘‘(ii) NO PREJUDICE TO OTHER ACTIONS.—Sub- ‘‘(ii) not be required to post any bond in accounting and reporting practices and pro- ject to paragraph (10), the filing of a claim order to pursue such remedies. cedures established by the Agency, maintain with the receiver shall not prejudice any ‘‘(C) NO ATTACHMENT OR EXECUTION.—No at- a full accounting of each conservatorship right of the claimant to continue any action tachment or execution may issue by any and receivership or other disposition of a that was filed before the appointment of the court upon assets in the possession of the re- regulated entity in default. receiver, subject to the determination of ceiver. ‘‘(B) ANNUAL ACCOUNTING OR REPORT.—With claims by the receiver. ‘‘(D) LIMITATION ON JUDICIAL REVIEW.—Ex- respect to each conservatorship or receiver- ‘‘(9) PAYMENT OF CLAIMS.— cept as otherwise provided in this sub- ship, the Agency shall make an annual ac- ‘‘(A) IN GENERAL.—The receiver may, in the section, no court shall have jurisdiction counting or report available to the Board, discretion of the receiver, and to the extent over— the Comptroller General of the United funds are available from the assets of the ‘‘(i) any claim or action for payment from, States, the Committee on Banking, Housing, regulated entity, pay creditor claims, in or any action seeking a determination of and Urban Affairs of the Senate, and the such manner and amounts as are authorized rights with respect to, the assets of any reg- Committee on Financial Services of the under this section, which are— ulated entity for which the Agency has been House of Representatives. ‘‘(i) allowed by the receiver; appointed receiver; or ‘‘(C) AVAILABILITY OF REPORTS.—Any re- ‘‘(ii) approved by the Agency pursuant to a ‘‘(ii) any claim relating to any act or omis- port prepared under subparagraph (B) shall final determination pursuant to paragraph sion of such regulated entity or the Agency be made available by the Agency upon re- (7) or (8); or as receiver. quest to any shareholder of a regulated enti- ‘‘(iii) determined by the final judgment of ‘‘(E) DISPOSITION OF ASSETS.—In exercising ty or any member of the public. any court of competent jurisdiction. any right, power, privilege, or authority as ‘‘(D) RECORDKEEPING REQUIREMENT.—After ‘‘(B) AGREEMENTS AGAINST THE INTEREST OF conservator or receiver in connection with the end of the 6-year period beginning on the THE AGENCY.—No agreement that tends to di- any sale or disposition of assets of a regu- date that the conservatorship or receivership minish or defeat the interest of the Agency lated entity for which the Agency has been is terminated by the Director, the Agency in any asset acquired by the Agency as re- appointed conservator or receiver, the Agen- may destroy any records of such regulated ceiver under this section shall be valid cy shall conduct its operations in a manner entity which the Agency, in the discretion of against the Agency unless such agreement is which maintains stability in the housing fi- the Agency, determines to be unnecessary in writing, and executed by an authorized of- nance markets and, to the extent consistent unless directed not to do so by a court of ficial of the regulated entity, except that with that goal— competent jurisdiction or governmental such requirements for qualified financial ‘‘(i) maximizes the net present value re- agency, or prohibited by law. contracts shall be applied in a manner con- turn from the sale or disposition of such as- ‘‘(15) FRAUDULENT TRANSFERS.— sets; sistent with reasonable business trading ‘‘(A) IN GENERAL.—The Agency, as conser- practices in the financial contracts market. ‘‘(ii) minimizes the amount of any loss re- vator or receiver, may avoid a transfer of alized in the resolution of cases; and ‘‘(C) PAYMENT OF DIVIDENDS ON CLAIMS.— any interest of a regulated entity-affiliated The receiver may, in the sole discretion of ‘‘(iii) ensures adequate competition and party, or any person who the conservator or the receiver, pay from the assets of the regu- fair and consistent treatment of offerors. receiver determines is a debtor of the regu- TATUTE OF LIMITATIONS FOR ACTIONS lated entity dividends on proved claims at ‘‘(12) S lated entity, in property, or any obligation BROUGHT BY CONSERVATOR OR RECEIVER.— any time, and no liability shall attach to the incurred by such party or person, that was ‘‘(A) IN GENERAL.—Notwithstanding any Agency, by reason of any such payment, for made within 5 years of the date on which the provision of any contract, the applicable failure to pay dividends to a claimant whose Agency was appointed conservator or re- statute of limitations with regard to any ac- claim is not proved at the time of any such ceiver, if such party or person voluntarily or tion brought by the Agency as conservator payment. involuntarily made such transfer or incurred or receiver shall be— ‘‘(D) RULEMAKING AUTHORITY OF THE DIREC- such liability with the intent to hinder, ‘‘(i) in the case of any contract claim, the TOR.—The Director may prescribe such rules, delay, or defraud the regulated entity, the longer of— including definitions of terms, as the Direc- Agency, the conservator, or receiver. ‘‘(I) the 6-year period beginning on the date tor deems appropriate to establish a single IGHT OF RECOVERY.—To the extent a the claim accrues; or ‘‘(B) R uniform interest rate for, or to make pay- ‘‘(II) the period applicable under State law; transfer is avoided under subparagraph (A), ments of post-insolvency interest to credi- and the conservator or receiver may recover, for tors holding proven claims against the re- ‘‘(ii) in the case of any tort claim, the the benefit of the regulated entity, the prop- ceivership estates of regulated entities fol- longer of— erty transferred, or, if a court so orders, the lowing satisfaction by the receiver of the ‘‘(I) the 3-year period beginning on the date value of such property (at the time of such principal amount of all creditor claims. the claim accrues; or transfer) from— ‘‘(10) SUSPENSION OF LEGAL ACTIONS.— ‘‘(II) the period applicable under State law. ‘‘(i) the initial transferee of such transfer ‘‘(A) IN GENERAL.—After the appointment ‘‘(B) DETERMINATION OF THE DATE ON WHICH or the regulated entity-affiliated party or of a conservator or receiver for a regulated A CLAIM ACCRUES.—For purposes of subpara- person for whose benefit such transfer was entity, the conservator or receiver may, in graph (A), the date on which the statute of made; or any judicial action or proceeding to which limitations begins to run on any claim de- ‘‘(ii) any immediate or mediate transferee such regulated entity is or becomes a party, scribed in such subparagraph shall be the of any such initial transferee. request a stay for a period not to exceed— later of— ‘‘(C) RIGHTS OF TRANSFEREE OR OBLIGEE.— ‘‘(i) 45 days, in the case of any conservator; ‘‘(i) the date of the appointment of the The conservator or receiver may not recover and Agency as conservator or receiver; or under subparagraph (B) from— ‘‘(ii) 90 days, in the case of any receiver. ‘‘(ii) the date on which the cause of action ‘‘(i) any transferee that takes for value, in- ‘‘(B) GRANT OF STAY BY ALL COURTS RE- accrues. cluding satisfaction or securing of a present QUIRED.—Upon receipt of a request by any ‘‘(13) REVIVAL OF EXPIRED STATE CAUSES OF or antecedent debt, in good faith; or conservator or receiver under subparagraph ACTION.— ‘‘(ii) any immediate or mediate good faith (A) for a stay of any judicial action or pro- ‘‘(A) IN GENERAL.—In the case of any tort transferee of such transferee. ceeding in any court with jurisdiction of claim described under subparagraph (B) for ‘‘(D) RIGHTS UNDER THIS PARAGRAPH.—The such action or proceeding, the court shall which the statute of limitations applicable rights under this paragraph of the conser- grant such stay as to all parties. under State law with respect to such claim vator or receiver described under subpara- ‘‘(11) ADDITIONAL RIGHTS AND DUTIES.— has expired not more than 5 years before the graph (A) shall be superior to any rights of a ‘‘(A) PRIOR FINAL ADJUDICATION.—The appointment of the Agency as conservator or trustee or any other party (other than any Agency shall abide by any final unappealable receiver, the Agency may bring an action as party which is a Federal agency) under title judgment of any court of competent jurisdic- conservator or receiver on such claim with- 11, United States Code. tion which was rendered before the appoint- out regard to the expiration of the statute of ‘‘(16) ATTACHMENT OF ASSETS AND OTHER IN- ment of the Agency as conservator or re- limitation applicable under State law. JUNCTIVE RELIEF.—Subject to paragraph (17), ceiver. ‘‘(B) CLAIMS DESCRIBED.—A tort claim re- any court of competent jurisdiction may, at ‘‘(B) RIGHTS AND REMEDIES OF CONSERVATOR ferred to under subparagraph (A) is a claim the request of the conservator or receiver, OR RECEIVER.—In the event of any appealable arising from fraud, intentional misconduct issue an order in accordance with Rule 65 of judgment, the Agency as conservator or re- resulting in unjust enrichment, or inten- the Federal Rules of Civil Procedure, includ- ceiver shall— tional misconduct resulting in substantial ing an order placing the assets of any person ‘‘(i) have all the rights and remedies avail- loss to the regulated entity. designated by the Agency or such conser- able to the regulated entity (before the ap- ‘‘(14) ACCOUNTING AND RECORDKEEPING RE- vator under the control of the court, and ap- pointment of such conservator or receiver) QUIREMENTS.— pointing a trustee to hold such assets. and the Agency, including removal to Fed- ‘‘(A) IN GENERAL.—The Agency as conser- ‘‘(17) STANDARDS OF PROOF.—Rule 65 of the eral court and all appellate rights; and vator or receiver shall, consistent with the Federal Rules of Civil Procedure shall apply

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with respect to any proceeding under para- long as all creditors similarly situated re- ‘‘(B) PAYMENTS OF RENT.—Notwithstanding graph (16) without regard to the requirement ceive not less than the amount provided subparagraph (A), the lessor under a lease to of such rule that the applicant show that the under subsection (e)(2). which that subparagraph applies shall— injury, loss, or damage is irreparable and im- ‘‘(3) DEFINITION.—The term ‘administrative ‘‘(i) be entitled to the contractual rent ac- mediate. expenses of the receiver’ shall include the ac- cruing before the later of the date— ‘‘(18) TREATMENT OF CLAIMS ARISING FROM tual, necessary costs and expenses incurred ‘‘(I) the notice of disaffirmance or repudi- BREACH OF CONTRACTS EXECUTED BY THE RE- by the receiver in preserving the assets of ation is mailed; or CEIVER OR CONSERVATOR.— the regulated entity or liquidating or other- ‘‘(II) the disaffirmance or repudiation be- ‘‘(A) IN GENERAL.—Notwithstanding any wise resolving the affairs of the regulated en- comes effective, unless the lessor is in de- other provision of this subsection, any final tity. Such expenses shall include obligations fault or breach of the terms of the lease; and unappealable judgment for monetary that are incurred by the receiver after ap- ‘‘(ii) have no claim for damages under any damages entered against a receiver or con- pointment as receiver that the Director de- acceleration clause or other penalty provi- servator for the breach of an agreement exe- termines are necessary and appropriate to sion in the lease; and cuted or approved in writing by such receiver facilitate the smooth and orderly liquidation ‘‘(iii) have a claim for any unpaid rent, or conservator after the date of its appoint- or other resolution of the regulated entity. subject to all appropriate offsets and de- ment, shall be paid as an administrative ex- ‘‘(d) PROVISIONS RELATING TO CONTRACTS fenses, due as of the date of the appointment, pense of the receiver or conservator. ENTERED INTO BEFORE APPOINTMENT OF CON- which shall be paid in accordance with this ‘‘(B) NO LIMITATION OF POWER.—Nothing in SERVATOR OR RECEIVER.— subsection and subsection (e). this paragraph shall be construed to limit ‘‘(1) AUTHORITY TO REPUDIATE CONTRACTS.— ‘‘(5) LEASES UNDER WHICH THE REGULATED the power of a receiver or conservator to ex- In addition to any other rights a conservator ENTITY IS THE LESSOR.— ercise any rights under contract or law, in- or receiver may have, the conservator or re- ‘‘(A) IN GENERAL.—If the conservator or re- cluding to terminate, breach, cancel, or oth- ceiver for any regulated entity may dis- ceiver repudiates an unexpired written lease erwise discontinue such agreement. affirm or repudiate any contract or lease— of real property of the regulated entity ‘‘(19) GENERAL EXCEPTIONS.— ‘‘(A) to which such regulated entity is a under which the regulated entity is the les- ‘‘(A) LIMITATIONS.—The rights of a conser- party; sor and the lessee is not, as of the date of vator or receiver appointed under this sec- ‘‘(B) the performance of which the conser- such repudiation, in default, the lessee under tion shall be subject to the limitations on vator or receiver, in its sole discretion, de- such lease may either— the powers of a receiver under sections 402 termines to be burdensome; and ‘‘(i) treat the lease as terminated by such through 407 of the Federal Deposit Insurance ‘‘(C) the disaffirmance or repudiation of repudiation; or Corporation Improvement Act of 1991 (12 which the conservator or receiver deter- ‘‘(ii) remain in possession of the leasehold U.S.C. 4402 through 4407). mines, in its sole discretion, will promote interest for the balance of the term of the ‘‘(B) MORTGAGES HELD IN TRUST.— the orderly administration of the affairs of lease, unless the lessee defaults under the ‘‘(i) IN GENERAL.—Any mortgage, pool of the regulated entity. terms of the lease after the date of such re- mortgages, or interest in a pool of mort- ‘‘(2) TIMING OF REPUDIATION.—The conser- pudiation. gages, held in trust, custodial, or agency ca- vator or receiver shall determine whether or ‘‘(B) PROVISIONS APPLICABLE TO LESSEE RE- pacity by a regulated entity for the benefit not to exercise the rights of repudiation MAINING IN POSSESSION.—If any lessee under a of persons other than the regulated entity under this subsection within a reasonable pe- lease described under subparagraph (A) re- shall not be available to satisfy the claims of riod following such appointment. mains in possession of a leasehold interest creditors generally. ‘‘(3) CLAIMS FOR DAMAGES FOR REPUDI- under clause (ii) of such subparagraph— ‘‘(ii) HOLDING OF MORTGAGES.—Any mort- ATION.— ‘‘(i) the lessee— gage, pool of mortgages, or interest in a pool ‘‘(A) IN GENERAL.—Except as otherwise pro- ‘‘(I) shall continue to pay the contractual of mortgages, described under clause (i) shall vided under subparagraph (C) and paragraphs rent pursuant to the terms of the lease after be held by the conservator or receiver ap- (4), (5), and (6), the liability of the conser- the date of the repudiation of such lease; and pointed under this section for the beneficial vator or receiver for the disaffirmance or re- ‘‘(II) may offset against any rent payment owners of such mortgage, pool of mortgages, pudiation of any contract pursuant to para- which accrues after the date of the repudi- or interest in a pool of mortgages in accord- graph (1) shall be— ation of the lease, and any damages which ance with the terms of the agreement cre- ‘‘(i) limited to actual direct compensatory accrue after such date due to the non- ating such trust, custodial, or other agency damages; and performance of any obligation of the regu- arrangement. ‘‘(ii) determined as of— lated entity under the lease after such date; ‘‘(iii) LIABILITY OF RECEIVER.—The liability ‘‘(I) the date of the appointment of the and of a receiver appointed under this section for conservator or receiver; or ‘‘(ii) the conservator or receiver shall not damages shall, in the case of any contingent ‘‘(II) in the case of any contract or agree- be liable to the lessee for any damages aris- or unliquidated claim relating to the mort- ment referred to in paragraph (8), the date of ing after such date as a result of the repudi- gages held in trust, be estimated in accord- the disaffirmance or repudiation of such con- ation other than the amount of any offset al- ance set forth in the regulations of the Di- tract or agreement. lowed under clause (i)(II). rector. ‘‘(B) NO LIABILITY FOR OTHER DAMAGES.— ‘‘(6) CONTRACTS FOR THE SALE OF REAL ‘‘(c) PRIORITY OF EXPENSES AND UNSECURED For purposes of subparagraph (A), the term PROPERTY.— CLAIMS.— ‘actual direct compensatory damages’ shall ‘‘(A) IN GENERAL.—If the conservator or re- ‘‘(1) IN GENERAL.—Unsecured claims not include— ceiver repudiates any contract for the sale of against a regulated entity, or a receiver, ‘‘(i) punitive or exemplary damages; real property and the purchaser of such real that are proven to the satisfaction of the re- ‘‘(ii) damages for lost profits or oppor- property under such contract is in posses- ceiver shall have priority in the following tunity; or sion, and is not, as of the date of such repudi- order: ‘‘(iii) damages for pain and suffering. ation, in default, such purchaser may ei- ‘‘(A) Administrative expenses of the re- ‘‘(C) MEASURE OF DAMAGES FOR REPUDI- ther— ceiver. ATION OF FINANCIAL CONTRACTS.—In the case ‘‘(i) treat the contract as terminated by ‘‘(B) Any other general or senior liability of any qualified financial contract or agree- such repudiation; or of the regulated entity and claims of other ment to which paragraph (8) applies, com- ‘‘(ii) remain in possession of such real Federal home loan banks arising from their pensatory damages shall be— property. payment obligations (including joint and ‘‘(i) deemed to include normal and reason- ‘‘(B) PROVISIONS APPLICABLE TO PURCHASER several payment obligations). able costs of cover or other reasonable meas- REMAINING IN POSSESSION.—If any purchaser ‘‘(C) Any obligation subordinated to gen- ures of damages utilized in the industries for of real property under any contract de- eral creditors. such contract and agreement claims; and scribed under subparagraph (A) remains in ‘‘(D) Any obligation to shareholders or ‘‘(ii) paid in accordance with this sub- possession of such property under clause (ii) members arising as a result of their status as section and subsection (e), except as other- of such subparagraph— shareholder or members. wise specifically provided in this section. ‘‘(i) the purchaser— ‘‘(2) CREDITORS SIMILARLY SITUATED.—All ‘‘(4) LEASES UNDER WHICH THE REGULATED ‘‘(I) shall continue to make all payments creditors that are similarly situated under ENTITY IS THE LESSEE.— due under the contract after the date of the paragraph (1) shall be treated in a similar ‘‘(A) IN GENERAL.—If the conservator or re- repudiation of the contract; and manner, except that the Agency may make ceiver disaffirms or repudiates a lease under ‘‘(II) may offset against any such payments such other payments to creditors necessary which the regulated entity was the lessee, any damages which accrue after such date to maximize the present value return from the conservator or receiver shall not be lia- due to the nonperformance (after such date) the sale or disposition or such regulated en- ble for any damages (other than damages de- of any obligation of the regulated entity tity’s assets or to minimize the amount of termined under subparagraph (B)) for the under the contract; and any loss realized in the resolution of cases so disaffirmance or repudiation of such lease. ‘‘(ii) the conservator or receiver shall—

VerDate Mar 15 2010 15:08 Nov 08, 2010 Jkt 069102 PO 00000 Frm 00067 Fmt 0688 Sfmt 0634 E:\BR08\H08MY8.002 H08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD May 8, 2008 CONGRESSIONAL RECORD—HOUSE, Vol. 154, Pt. 6 8211 ‘‘(I) not be liable to the purchaser for any transfer obligation arising under or in con- ‘‘(VI) means any other agreement or trans- damages arising after such date as a result of nection with 1 or more contracts and agree- action that is similar to any agreement or the repudiation other than the amount of ments described in clause (i), including any transaction referred to in this clause; any offset allowed under clause (i)(II); master agreement for such contracts or ‘‘(VII) means any combination of the ‘‘(II) deliver title to the purchaser in ac- agreements. agreements or transactions referred to in cordance with the provisions of the contract; ‘‘(B) APPLICABILITY OF OTHER PROVISIONS.— this clause; and Paragraph (10) of subsection (b) shall apply ‘‘(VIII) means any option to enter into any ‘‘(III) have no obligation under the con- in the case of any judicial action or pro- agreement or transaction referred to in this tract other than the performance required ceeding brought against any receiver re- clause; under subclause (II). ferred to under subparagraph (A), or the reg- ‘‘(IX) means a master agreement that pro- ‘‘(C) ASSIGNMENT AND SALE ALLOWED.— ulated entity for which such receiver was ap- vides for an agreement or transaction re- ‘‘(i) IN GENERAL.—No provision of this para- pointed, by any party to a contract or agree- ferred to in subclause (I), (III), (IV), (V), (VI), graph shall be construed as limiting the ment described under subparagraph (A)(i) (VII), or (VIII), together with all supple- right of the conservator or receiver to assign with such regulated entity. ments to any such master agreement, with- the contract described under subparagraph ‘‘(C) CERTAIN TRANSFERS NOT AVOIDABLE.— out regard to whether the master agreement (A), and sell the property subject to the con- ‘‘(i) IN GENERAL.—Notwithstanding para- provides for an agreement or transaction tract and the provisions of this paragraph. graph (11) or any other Federal or State laws that is not a securities contract under this ‘‘(ii) NO LIABILITY AFTER ASSIGNMENT AND relating to the avoidance of preferential or clause, except that the master agreement SALE.—If an assignment and sale described fraudulent transfers, the Agency, whether shall be considered to be a securities con- under clause (i) is consummated, the conser- acting as such or as conservator or receiver tract under this clause only with respect to vator or receiver shall have no further liabil- of a regulated entity, may not avoid any each agreement or transaction under the ity under the contract described under sub- transfer of money or other property in con- master agreement that is referred to in sub- paragraph (A), or with respect to the real nection with any qualified financial contract clause (I), (III), (IV), (V), (VI), (VII), or property which was the subject of such con- with a regulated entity. (VIII); and tract. ‘‘(ii) EXCEPTION FOR CERTAIN TRANSFERS.— ‘‘(X) means any security agreement or ar- ‘‘(7) PROVISIONS APPLICABLE TO SERVICE Clause (i) shall not apply to any transfer of rangement or other credit enhancement re- CONTRACTS.— money or other property in connection with lated to any agreement or transaction re- ‘‘(A) SERVICES PERFORMED BEFORE APPOINT- any qualified financial contract with a regu- ferred to in this clause, including any guar- MENT.—In the case of any contract for serv- lated entity if the Agency determines that antee or reimbursement obligation in con- ices between any person and any regulated the transferee had actual intent to hinder, nection with any agreement or transaction entity for which the Agency has been ap- delay, or defraud such regulated entity, the referred to in this clause. pointed conservator or receiver, any claim of creditors of such regulated entity, or any ‘‘(iii) COMMODITY CONTRACT.—The term such person for services performed before the conservator or receiver appointed for such ‘commodity contract’ means— appointment of the conservator or the re- regulated entity. ‘‘(I) with respect to a futures commission ceiver shall be— ‘‘(D) CERTAIN CONTRACTS AND AGREEMENTS merchant, a contract for the purchase or sale ‘‘(i) a claim to be paid in accordance with DEFINED.—In this subsection: of a commodity for future delivery on, or subsections (b) and (e); and ‘‘(i) QUALIFIED FINANCIAL CONTRACT.—The subject to the rules of, a contract market or ‘‘(ii) deemed to have arisen as of the date term ‘qualified financial contract’ means board of trade; the conservator or receiver was appointed. any securities contract, commodity con- ‘‘(II) with respect to a foreign futures com- ‘‘(B) SERVICES PERFORMED AFTER APPOINT- tract, forward contract, repurchase agree- mission merchant, a foreign future; MENT AND PRIOR TO REPUDIATION.—If, in the ment, swap agreement, and any similar ‘‘(III) with respect to a leverage trans- case of any contract for services described agreement that the Agency determines by action merchant, a leverage transaction; under subparagraph (A), the conservator or regulation, resolution, or order to be a quali- ‘‘(IV) with respect to a clearing organiza- receiver accepts performance by the other fied financial contract for purposes of this tion, a contract for the purchase or sale of a person before the conservator or receiver paragraph. commodity for future delivery on, or subject makes any determination to exercise the ‘‘(ii) SECURITIES CONTRACT.—The term ‘se- to the rules of, a contract market or board of right of repudiation of such contract under curities contract’— trade that is cleared by such clearing organi- this section— ‘‘(I) means a contract for the purchase, zation, or commodity option traded on, or ‘‘(i) the other party shall be paid under the sale, or loan of a security, a certificate of de- subject to the rules of, a contract market or terms of the contract for the services per- posit, a mortgage loan, or any interest in a board of trade that is cleared by such clear- formed; and mortgage loan, a group or index of securi- ing organization; ‘‘(ii) the amount of such payment shall be ties, certificates of deposit, or mortgage ‘‘(V) with respect to a commodity options treated as an administrative expense of the loans or interests therein (including any in- dealer, a commodity option; conservatorship or receivership. terest therein or based on the value thereof) ‘‘(VI) any other agreement or transaction ‘‘(C) ACCEPTANCE OF PERFORMANCE NO BAR or any option on any of the foregoing, in- that is similar to any agreement or trans- TO SUBSEQUENT REPUDIATION.—The accept- cluding any option to purchase or sell any action referred to in this clause; ance by any conservator or receiver of serv- such security, certificate of deposit, mort- ‘‘(VII) any combination of the agreements ices referred to under subparagraph (B) in gage loan, interest, group or index, or op- or transactions referred to in this clause; connection with a contract described in such tion, and including any repurchase or reverse ‘‘(VIII) any option to enter into any agree- subparagraph shall not affect the right of the repurchase transaction on any such security, ment or transaction referred to in this conservator or receiver to repudiate such certificate of deposit, mortgage loan, inter- clause; contract under this section at any time after est, group or index, or option; ‘‘(IX) a master agreement that provides for such performance. ‘‘(II) does not include any purchase, sale, an agreement or transaction referred to in ‘‘(8) CERTAIN QUALIFIED FINANCIAL CON- or repurchase obligation under a participa- subclause (I), (II), (III), (IV), (V), (VI), (VII), TRACTS.— tion in a commercial mortgage loan unless or (VIII), together with all supplements to ‘‘(A) RIGHTS OF PARTIES TO CONTRACTS.— the Agency determines by regulation, resolu- any such master agreement, without regard Subject to paragraphs (9) and (10) and not- tion, or order to include any such agreement to whether the master agreement provides withstanding any other provision of this Act, within the meaning of such term; for an agreement or transaction that is not any other Federal law, or the law of any ‘‘(III) means any option entered into on a a commodity contract under this clause, ex- State, no person shall be stayed or prohib- national securities exchange relating to for- cept that the master agreement shall be con- ited from exercising— eign currencies; sidered to be a commodity contract under ‘‘(i) any right such person has to cause the ‘‘(IV) means the guarantee by or to any se- this clause only with respect to each agree- termination, liquidation, or acceleration of curities clearing agency of any settlement of ment or transaction under the master agree- any qualified financial contract with a regu- cash, securities, certificates of deposit, ment that is referred to in subclause (I), (II), lated entity that arises upon the appoint- mortgage loans or interests therein, group or (III), (IV), (V), (VI), (VII), or (VIII); or ment of the Agency as receiver for such reg- index of securities, certificates of deposit, or ‘‘(X) any security agreement or arrange- ulated entity at any time after such appoint- mortgage loans or interests therein (includ- ment or other credit enhancement related to ment; ing any interest therein or based on the any agreement or transaction referred to in ‘‘(ii) any right under any security agree- value thereof) or option on any of the fore- this clause, including any guarantee or reim- ment or arrangement or other credit en- going, including any option to purchase or bursement obligation in connection with any hancement relating to one or more qualified sell any such security, certificate of deposit, agreement or transaction referred to in this financial contracts described in clause (i); or mortgage loan, interest, group or index, or clause. ‘‘(iii) any right to offset or net out any ter- option; ‘‘(iv) FORWARD CONTRACT.—The term ‘for- mination value, payment amount, or other ‘‘(V) means any margin loan; ward contract’ means—

VerDate Mar 15 2010 15:08 Nov 08, 2010 Jkt 069102 PO 00000 Frm 00068 Fmt 0688 Sfmt 0634 E:\BR08\H08MY8.002 H08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD 8212 CONGRESSIONAL RECORD—HOUSE, Vol. 154, Pt. 6 May 8, 2008 ‘‘(I) a contract (other than a commodity er the master agreement provides for an any agreements or transactions referred to contract) for the purchase, sale, or transfer agreement or transaction that is not a repur- in subclause (I), (II), (III), (IV), or (V), in- of a commodity or any similar good, article, chase agreement under this clause, except cluding any guarantee or reimbursement ob- service, right, or interest which is presently that the master agreement shall be consid- ligation in connection with any agreement or in the future becomes the subject of deal- ered to be a repurchase agreement under this or transaction referred to in any such sub- ing in the forward contract trade, or product subclause only with respect to each agree- clause. or byproduct thereof, with a maturity date ment or transaction under the master agree- Such term is applicable for purposes of this more than 2 days after the date the contract ment that is referred to in subclause (I), subsection only and shall not be construed or is entered into, including, a repurchase (III), or (IV); and applied so as to challenge or affect the char- transaction, reverse repurchase transaction, ‘‘(VI) means any security agreement or ar- acterization, definition, or treatment of any consignment, lease, swap, hedge transaction, rangement or other credit enhancement re- swap agreement under any other statute, deposit, loan, option, allocated transaction, lated to any agreement or transaction re- regulation, or rule, including the Securities unallocated transaction, or any other simi- ferred to in subclause (I), (III), (IV), or (V), Act of 1933, the Securities Exchange Act of lar agreement; including any guarantee or reimbursement 1934, the Public Utility Holding Company ‘‘(II) any combination of agreements or obligation in connection with any agreement Act of 1935, the Trust Indenture Act of 1939, transactions referred to in subclauses (I) and or transaction referred to in any such sub- the Investment Company Act of 1940, the In- (III); clause. vestment Advisers Act of 1940, the Securities ‘‘(III) any option to enter into any agree- For purposes of this clause, the term ‘quali- Investor Protection Act of 1970, the Com- ment or transaction referred to in subclause fied foreign government security’ means a modity Exchange Act, the Gramm-Leach- (I) or (II); security that is a direct obligation of, or Bliley Act, and the Legal Certainty for Bank ‘‘(IV) a master agreement that provides for that is fully guaranteed by, the central gov- Products Act of 2000. an agreement or transaction referred to in ernment of a member of the Organization for ‘‘(vii) TREATMENT OF MASTER AGREEMENT subclauses (I), (II), or (III), together with all Economic Cooperation and Development (as AS ONE AGREEMENT.—Any master agreement supplements to any such master agreement, determined by regulation or order adopted for any contract or agreement described in without regard to whether the master agree- by the appropriate Federal banking author- any preceding clause of this subparagraph ment provides for an agreement or trans- ity). (or any master agreement for such master action that is not a forward contract under ‘‘(vi) SWAP AGREEMENT.—The term ‘swap agreement or agreements), together with all this clause, except that the master agree- agreement’ means— supplements to such master agreement, shall ment shall be considered to be a forward con- ‘‘(I) any agreement, including the terms be treated as a single agreement and a single tract under this clause only with respect to and conditions incorporated by reference in qualified financial contract. If a master each agreement or transaction under the any such agreement, which is an interest agreement contains provisions relating to master agreement that is referred to in sub- rate swap, option, future, or forward agree- agreements or transactions that are not clause (I), (II), or (III); or ment, including a rate floor, rate cap, rate themselves qualified financial contracts, the ‘‘(V) any security agreement or arrange- collar, cross-currency rate swap, and basis master agreement shall be deemed to be a ment or other credit enhancement related to swap; a spot, same day-tomorrow, tomorrow- qualified financial contract only with re- any agreement or transaction referred to in next, forward, or other foreign exchange or spect to those transactions that are them- subclause (I), (II), (III), or (IV), including any precious metals agreement; a currency swap, selves qualified financial contracts. guarantee or reimbursement obligation in option, future, or forward agreement; an eq- ‘‘(viii) TRANSFER.—The term ‘transfer’ connection with any agreement or trans- uity index or equity swap, option, future, or means every mode, direct or indirect, abso- action referred to in any such subclause. forward agreement; a debt index or debt lute or conditional, voluntary or involun- ‘‘(v) REPURCHASE AGREEMENT.—The term swap, option, future, or forward agreement; a tary, of disposing of or parting with property ‘repurchase agreement’ (which definition total return, credit spread or credit swap, op- or with an interest in property, including re- also applies to a reverse repurchase agree- tion, future, or forward agreement; a com- tention of title as a security interest and ment)— modity index or commodity swap, option, fu- foreclosure of the regulated entity’s equity ‘‘(I) means an agreement, including related ture, or forward agreement; or a weather of redemption. terms, which provides for the transfer of one swap, weather derivative, or weather option; ‘‘(E) CERTAIN PROTECTIONS IN EVENT OF AP- or more certificates of deposit, mortgage-re- ‘‘(II) any agreement or transaction that is POINTMENT OF CONSERVATOR.—Notwith- lated securities (as such term is defined in similar to any other agreement or trans- standing any other provision of this Act the Securities Exchange Act of 1934), mort- action referred to in this clause and that is (other than paragraph (13) of this sub- gage loans, interests in mortgage-related se- of a type that has been, is presently, or in section), any other Federal law, or the law of curities or mortgage loans, eligible bankers’ the future becomes, the subject of recurrent any State, no person shall be stayed or pro- acceptances, qualified foreign government dealings in the swap markets (including hibited from exercising— securities or securities that are direct obli- terms and conditions incorporated by ref- ‘‘(i) any right such person has to cause the gations of, or that are fully guaranteed by, erence in such agreement) and that is a for- termination, liquidation, or acceleration of the United States or any agency of the ward, swap, future, or option on one or more any qualified financial contract with a regu- United States against the transfer of funds rates, currencies, commodities, equity secu- lated entity in a conservatorship based upon by the transferee of such certificates of de- rities or other equity instruments, debt secu- a default under such financial contract posit, eligible bankers’ acceptances, securi- rities or other debt instruments, quan- which is enforceable under applicable non- ties, mortgage loans, or interests with a si- titative measures associated with an occur- insolvency law; multaneous agreement by such transferee to rence, extent of an occurrence, or contin- ‘‘(ii) any right under any security agree- transfer to the transferor thereof certificates gency associated with a financial, commer- ment or arrangement or other credit en- of deposit, eligible bankers’ acceptances, se- cial, or economic consequence, or economic hancement relating to one or more such curities, mortgage loans, or interests as de- or financial indices or measures of economic qualified financial contracts; or scribed above, at a date certain not later or financial risk or value; ‘‘(iii) any right to offset or net out any ter- than 1 year after such transfers or on de- ‘‘(III) any combination of agreements or mination values, payment amounts, or other mand, against the transfer of funds, or any transactions referred to in this clause; transfer obligations arising under or in con- other similar agreement; ‘‘(IV) any option to enter into any agree- nection with such qualified financial con- ‘‘(II) does not include any repurchase obli- ment or transaction referred to in this tracts. gation under a participation in a commercial clause; ‘‘(F) CLARIFICATION.—No provision of law mortgage loan unless the Agency determines ‘‘(V) a master agreement that provides for shall be construed as limiting the right or by regulation, resolution, or order to include an agreement or transaction referred to in power of the Agency, or authorizing any any such participation within the meaning subclause (I), (II), (III), or (IV), together with court or agency to limit or delay, in any of such term; all supplements to any such master agree- manner, the right or power of the Agency to ‘‘(III) means any combination of agree- ment, without regard to whether the master transfer any qualified financial contract in ments or transactions referred to in sub- agreement contains an agreement or trans- accordance with paragraphs (9) and (10) of clauses (I) and (IV); action that is not a swap agreement under this subsection or to disaffirm or repudiate ‘‘(IV) means any option to enter into any this clause, except that the master agree- any such contract in accordance with sub- agreement or transaction referred to in sub- ment shall be considered to be a swap agree- section (d)(1) of this section. clause (I) or (III); ment under this clause only with respect to ‘‘(G) WALKAWAY CLAUSES NOT EFFECTIVE.— ‘‘(V) means a master agreement that pro- each agreement or transaction under the ‘‘(i) IN GENERAL.—Notwithstanding the pro- vides for an agreement or transaction re- master agreement that is referred to in sub- visions of subparagraphs (A) and (E), and sec- ferred to in subclause (I), (III), or (IV), to- clause (I), (II), (III), or (IV); and tions 403 and 404 of the Federal Deposit In- gether with all supplements to any such ‘‘(VI) any security agreement or arrange- surance Corporation Improvement Act of master agreement, without regard to wheth- ment or other credit enhancement related to 1991, no walkaway clause shall be enforceable

VerDate Mar 15 2010 15:08 Nov 08, 2010 Jkt 069102 PO 00000 Frm 00069 Fmt 0688 Sfmt 0634 E:\BR08\H08MY8.002 H08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD May 8, 2008 CONGRESSIONAL RECORD—HOUSE, Vol. 154, Pt. 6 8213 in a qualified financial contract of a regu- Federal Deposit Insurance Corporation Im- ‘‘(II) not apply to the rights of parties to lated entity in default. provement Act of 1991, solely by reason of or any qualified financial contracts under sub- ‘‘(ii) WALKAWAY CLAUSE DEFINED.—For pur- incidental to the appointment of a conser- section (d)(8); and poses of this subparagraph, the term vator for the regulated entity (or the insol- ‘‘(III) not be construed as permitting the ‘walkaway clause’ means a provision in a vency or financial condition of the regulated conservator or receiver to fail to comply qualified financial contract that, after cal- entity for which the conservator has been with otherwise enforceable provisions of culation of a value of a party’s position or an appointed). such contracts. amount due to or from 1 of the parties in ac- ‘‘(iii) NOTICE.—For purposes of this para- ‘‘(14) SAVINGS CLAUSE.—The meanings of cordance with its terms upon termination, graph, the Agency as receiver or conservator terms used in this subsection are applicable liquidation, or acceleration of the qualified of a regulated entity shall be deemed to have for purposes of this subsection only, and financial contract, either does not create a notified a person who is a party to a quali- shall not be construed or applied so as to payment obligation of a party or extin- fied financial contract with such regulated challenge or affect the characterization, def- guishes a payment obligation of a party in entity if the Agency has taken steps reason- inition, or treatment of any similar terms whole or in part solely because of such par- ably calculated to provide notice to such per- under any other statute, regulation, or rule, ty’s status as a nondefaulting party. son by the time specified in subparagraph including the Gramm-Leach-Bliley Act, the ‘‘(9) TRANSFER OF QUALIFIED FINANCIAL CON- (A). Legal Certainty for Bank Products Act of TRACTS.—In making any transfer of assets or ‘‘(C) BUSINESS DAY DEFINED.—For purposes 2000, the securities laws (as that term is de- liabilities of a regulated entity in default of this paragraph, the term ‘business day’ fined in section 3(a)(47) of the Securities Ex- which includes any qualified financial con- means any day other than any Saturday, change Act of 1934), and the Commodity Ex- tract, the conservator or receiver for such Sunday, or any day on which either the New change Act. regulated entity shall either— York Stock Exchange or the Federal Reserve ‘‘(15) EXCEPTION FOR FEDERAL RESERVE AND ‘‘(A) transfer to 1 person— Bank of New York is closed. FEDERAL HOME LOAN BANKS.—No provision of ‘‘(i) all qualified financial contracts be- ‘‘(11) DISAFFIRMANCE OR REPUDIATION OF this subsection shall apply with respect to— tween any person (or any affiliate of such QUALIFIED FINANCIAL CONTRACTS.—In exer- ‘‘(A) any extension of credit from any Fed- person) and the regulated entity in default; cising the rights of disaffirmance or repudi- eral home loan bank or Federal Reserve ‘‘(ii) all claims of such person (or any affil- ation of a conservator or receiver with re- Bank to any regulated entity; or iate of such person) against such regulated spect to any qualified financial contract to ‘‘(B) any security interest in the assets of entity under any such contract (other than which a regulated entity is a party, the con- the regulated entity securing any such ex- any claim which, under the terms of any servator or receiver for such institution tension of credit. such contract, is subordinated to the claims shall either— ‘‘(e) VALUATION OF CLAIMS IN DEFAULT.— of general unsecured creditors of such regu- ‘‘(A) disaffirm or repudiate all qualified fi- ‘‘(1) IN GENERAL.—Notwithstanding any lated entity); nancial contracts between— other provision of Federal law or the law of ‘‘(iii) all claims of such regulated entity ‘‘(i) any person or any affiliate of such per- any State, and regardless of the method against such person (or any affiliate of such son; and which the Agency determines to utilize with person) under any such contract; and ‘‘(ii) the regulated entity in default; or respect to a regulated entity in default or in ‘‘(iv) all property securing or any other ‘‘(B) disaffirm or repudiate none of the danger of default, including transactions au- credit enhancement for any contract de- qualified financial contracts referred to in thorized under subsection (i), this subsection scribed in clause (i) or any claim described in subparagraph (A) (with respect to such per- shall govern the rights of the creditors of clause (ii) or (iii) under any such contract; or son or any affiliate of such person). such regulated entity. ‘‘(12) CERTAIN SECURITY INTERESTS NOT ‘‘(B) transfer none of the financial con- ‘‘(2) MAXIMUM LIABILITY.—The maximum tracts, claims, or property referred to under AVOIDABLE.—No provision of this subsection liability of the Agency, acting as receiver or subparagraph (A) (with respect to such per- shall be construed as permitting the avoid- in any other capacity, to any person having ance of any legally enforceable or perfected son and any affiliate of such person). a claim against the receiver or the regulated security interest in any of the assets of any ‘‘(10) NOTIFICATION OF TRANSFER.— entity for which such receiver is appointed regulated entity, except where such an inter- ‘‘(A) IN GENERAL.—If— shall equal the lesser of— est is taken in contemplation of the insol- ‘‘(i) the conservator or receiver for a regu- ‘‘(A) the amount such claimant would have vency of the regulated entity, or with the in- lated entity in default makes any transfer of received if the Agency had liquidated the as- tent to hinder, delay, or defraud the regu- the assets and liabilities of such regulated sets and liabilities of such regulated entity lated entity or the creditors of such regu- entity, and without exercising the authority of the lated entity. ‘‘(ii) the transfer includes any qualified fi- Agency under subsection (i) of this section; ‘‘(13) AUTHORITY TO ENFORCE CONTRACTS.— nancial contract, or ‘‘(A) IN GENERAL.—Notwithstanding any the conservator or receiver shall notify any provision of a contract providing for termi- ‘‘(B) the amount of proceeds realized from person who is a party to any such contract of nation, default, acceleration, or exercise of the performance of contracts or sale of the such transfer by 5:00 p.m. (eastern time) on rights upon, or solely by reason of, insol- assets of the regulated entity. ‘‘(f) LIMITATION ON COURT ACTION.—Except the business day following the date of the ap- vency or the appointment of a conservator or as provided in this section or at the request pointment of the receiver in the case of a re- receiver, the conservator or receiver may en- of the Director, no court may take any ac- ceivership, or the business day following force any contract or regulated entity bond tion to restrain or affect the exercise of pow- such transfer in the case of a conservator- entered into by the regulated entity. ers or functions of the Agency as a conser- ship. ‘‘(B) CERTAIN RIGHTS NOT AFFECTED.—No ‘‘(B) CERTAIN RIGHTS NOT ENFORCEABLE.— provision of this paragraph may be construed vator or a receiver. ‘‘(g) LIABILITY OF DIRECTORS AND OFFI- ‘‘(i) RECEIVERSHIP.—A person who is a as impairing or affecting any right of the CERS.— party to a qualified financial contract with a conservator or receiver to enforce or recover ‘‘(1) IN GENERAL.—A director or officer of a regulated entity may not exercise any right under a director’s or officer’s liability insur- regulated entity may be held personally lia- that such person has to terminate, liquidate, ance contract or surety bond under other ap- ble for monetary damages in any civil action or net such contract under paragraph (8)(A) plicable law. by, on behalf of, or at the request or direc- of this subsection or section 403 or 404 of the ‘‘(C) CONSENT REQUIREMENT.— tion of the Agency, which action is pros- Federal Deposit Insurance Corporation Im- ‘‘(i) IN GENERAL.—Except as otherwise pro- provement Act of 1991, solely by reason of or vided under this section, no person may exer- ecuted wholly or partially for the benefit of incidental to the appointment of a receiver cise any right or power to terminate, accel- the Agency— for the regulated entity (or the insolvency or erate, or declare a default under any con- ‘‘(A) acting as conservator or receiver of financial condition of the regulated entity tract to which a regulated entity is a party, such regulated entity, or for which the receiver has been appointed)— or to obtain possession of or exercise control ‘‘(B) acting based upon a suit, claim, or ‘‘(I) until 5:00 p.m. (eastern time) on the over any property of the regulated entity, or cause of action purchased from, assigned by, business day following the date of the ap- affect any contractual rights of the regu- or otherwise conveyed by such receiver or pointment of the receiver; or lated entity, without the consent of the con- conservator, ‘‘(II) after the person has received notice servator or receiver, as appropriate, for a pe- for gross negligence, including any similar that the contract has been transferred pursu- riod of— conduct or conduct that demonstrates a ant to paragraph (9)(A). ‘‘(I) 45 days after the date of appointment greater disregard of a duty of care (than ‘‘(ii) CONSERVATORSHIP.—A person who is a of a conservator; or gross negligence) including intentional party to a qualified financial contract with a ‘‘(II) 90 days after the date of appointment tortious conduct, as such terms are defined regulated entity may not exercise any right of a receiver. and determined under applicable State law. that such person has to terminate, liquidate, ‘‘(ii) EXCEPTIONS.—This paragraph shall— ‘‘(2) NO LIMITATION.—Nothing in this para- or net such contract under paragraph (8)(E) ‘‘(I) not apply to a director’s or officer’s li- graph shall impair or affect any right of the of this subsection or section 403 or 404 of the ability insurance contract; Agency under other applicable law.

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‘‘(h) DAMAGES.—In any proceeding related ‘‘(A) IN GENERAL.—Subject to subparagraph ‘‘(A) IN GENERAL.—The limited-life regu- to any claim against a director, officer, em- (B), unless Congress authorizes the sale of lated entity may obtain unsecured credit and ployee, agent, attorney, accountant, ap- the capital stock of the limited-life regu- incur unsecured debt in the ordinary course praiser, or any other party employed by or lated entity, not later than 2 years after the of business. providing services to a regulated entity, re- date of its organization, the Agency shall ‘‘(B) INABILITY TO OBTAIN CREDIT.—If the coverable damages determined to result from wind up the affairs of the limited-life regu- limited-life regulated entity is unable to ob- the improvident or otherwise improper use lated entity. tain unsecured credit the Director may au- or investment of any assets of the regulated ‘‘(B) EXTENSION.—The Director may, in the thorize the obtaining of credit or the incur- entity shall include principal losses and ap- discretion of the Director, extend the status ring of debt— propriate interest. of the limited-life regulated entity for 3 ad- ‘‘(i) with priority over any or all adminis- ‘‘(i) LIMITED-LIFE REGULATED ENTITIES.— ditional 1-year periods. trative expenses; ‘‘(1) ORGANIZATION.— ‘‘(7) TRANSFER OF ASSETS AND LIABILITIES.— ‘‘(ii) secured by a lien on property that is ‘‘(A) PURPOSE.—If a regulated entity is in ‘‘(A) IN GENERAL.— not otherwise subject to a lien; or default, or if the Agency anticipates that a ‘‘(i) TRANSFER OF ASSETS AND LIABILITIES.— ‘‘(iii) secured by a junior lien on property regulated entity will default, the Agency The Agency, as receiver, may transfer any that is subject to a lien. assets and liabilities of a regulated entity in may organize a limited-life regulated entity ‘‘(C) LIMITATIONS.— default, or in danger of default, to the lim- with those powers and attributes of the regu- ‘‘(i) IN GENERAL.—The Director, after no- lated entity in default or in danger of default ited-life regulated entity in accordance with tice and a hearing, may authorize the ob- paragraph (1). that the Director determines necessary, sub- taining of credit or the incurring of debt se- ‘‘(ii) SUBSEQUENT TRANSFERS.—At any time ject to the provisions of this subsection. The cured by a senior or equal lien on property after a charter is transferred to a limited-life Director shall grant a temporary charter to that is subject to a lien (other than mort- regulated entity, the Agency, as receiver, the limited-life regulated entity, and the gages that collateralize the mortgage-backed may transfer any assets and liabilities of limited-life regulated entity shall operate securities issued or guaranteed by the regu- such regulated entity in default, or in danger subject to that charter. lated entity) only if— ‘‘(B) AUTHORITIES.—Upon the creation of a in default, as the Agency may, in its discre- tion, determine to be appropriate in accord- ‘‘(I) the limited-life regulated entity is un- limited-life regulated entity under subpara- able to obtain such credit otherwise; and graph (A), the limited-life regulated entity ance with paragraph (1). ‘‘(iii) EFFECTIVE WITHOUT APPROVAL.—The ‘‘(II) there is adequate protection of the in- may— terest of the holder of the lien on the prop- ‘‘(i) assume such liabilities of the regu- transfer of any assets or liabilities of a regu- lated entity in default, or in danger of de- erty which such senior or equal lien is pro- lated entity that is in default or in danger of posed to be granted. default as the Agency may, in its discretion, fault, transferred to a limited-life regulated entity shall be effective without any further ‘‘(ii) BURDEN OF PROOF.—In any hearing determine to be appropriate, provided that under this subsection, the Director has the the liabilities assumed shall not exceed the approval under Federal or State law, assign- ment, or consent with respect thereto. burden of proof on the issue of adequate pro- amount of assets of the limited-life regu- tection. lated entity; ‘‘(8) PROCEEDS.—To the extent that avail- able proceeds from the limited-life regulated ‘‘(D) EFFECT ON DEBTS AND LIENS.—The re- ‘‘(ii) purchase such assets of the regulated entity exceed amounts required to pay obli- versal or modification on appeal of an au- entity that is in default, or in danger of de- gations, such proceeds may be paid to the thorization under this paragraph to obtain fault, as the Agency may, in its discretion, regulated entity in default, or in danger of credit or incur debt, or of a grant under this determine to be appropriate; and default. section of a priority or a lien, does not affect ‘‘(iii) perform any other temporary func- ‘‘(9) POWERS.— the validity of any debt so incurred, or any tion which the Agency may, in its discretion, ‘‘(A) IN GENERAL.—Each limited-life regu- priority or lien so granted, to an entity that prescribe in accordance with this section. lated entity created under this subsection extended such credit in good faith, whether ‘‘(2) CHARTER.— shall have all corporate powers of, and be or not such entity knew of the pendency of ‘‘(A) CONDITIONS.—The Agency may grant a subject to the same provisions of law as, the the appeal, unless such authorization and temporary charter if the Agency determines regulated entity in default or in danger of the incurring of such debt, or the granting of that the continued operation of the regu- default to which it relates, except that— such priority or lien, were stayed pending lated entity in default or in danger of default ‘‘(i) the Agency may— appeal. is in the best interest of the national econ- ‘‘(I) remove the directors of a limited-life omy and the housing markets. ‘‘(11) ISSUANCE OF PREFERRED DEBT.—A lim- regulated entity; and ited-life regulated entity may, subject to the ‘‘(B) TREATMENT AS BEING IN DEFAULT FOR ‘‘(II) fix the compensation of members of approval of the Director and subject to such CERTAIN PURPOSES.—A limited-life regulated the board of directors and senior manage- entity shall be treated as a regulated entity terms and conditions as the Director may ment, as determined by the Agency in its prescribe, issue notes, bonds, or other debt in default at such times and for such pur- discretion, of a limited-life regulated entity; poses as the Agency may, in its discretion, obligations of a class to which all other debt ‘‘(ii) the Agency may indemnify the rep- obligations of the limited-life regulated enti- determine. resentatives for purposes of paragraph (1)(B), ‘‘(C) MANAGEMENT.—A limited-life regu- ty shall be subordinate in right and pay- and the directors, officers, employees, and ment. lated entity, upon the granting of its char- agents of a limited-life regulated entity on ‘‘(12) NO FEDERAL STATUS.— ter, shall be under the management of a such terms as the Agency determines to be ‘‘(A) AGENCY STATUS.—A limited-life regu- board of directors consisting of not fewer appropriate; and lated entity is not an agency, establishment, than 5 nor more than 10 members appointed ‘‘(iii) the board of directors of a limited- or instrumentality of the United States. by the Agency. life regulated entity— ‘‘(B) EMPLOYEE STATUS.—Representatives ‘‘(D) BYLAWS.—The board of directors of a ‘‘(I) shall elect a chairperson who may also for purposes of paragraph (1)(B), interim di- limited-life regulated entity shall adopt such serve in the position of chief executive offi- bylaws as may be approved by the Agency. cer, except that such person shall not serve rectors, directors, officers, employees, or ‘‘(3) CAPITAL STOCK.—No capital stock need either as chairperson or as chief executive agents of a limited-life regulated entity are be paid into a limited-life regulated entity officer without the prior approval of the not, solely by virtue of service in any such by the Agency. Agency; and capacity, officers or employees of the United ‘‘(4) INVESTMENTS.—Funds of a limited-life ‘‘(II) may appoint a chief executive officer States. Any employee of the Agency or of regulated entity shall be kept on hand in who is not also the chairperson, except that any Federal instrumentality who serves at cash, invested in obligations of the United such person shall not serve as chief executive the request of the Agency as a representative States or obligations guaranteed as to prin- officer without the prior approval of the for purposes of paragraph (1)(B), interim di- cipal and interest by the United States, or Agency. rector, director, officer, employee, or agent deposited with the Agency, or any Federal ‘‘(B) STAY OF JUDICIAL ACTION.—Any judi- of a limited-life regulated entity shall not— Reserve bank. cial action to which a limited-life regulated ‘‘(i) solely by virtue of service in any such ‘‘(5) EXEMPT STATUS.—Notwithstanding entity becomes a party by virtue of its ac- capacity lose any existing status as an offi- any other provision of Federal or State law, quisition of any assets or assumption of any cer or employee of the United States for pur- the limited-life regulated entity, its fran- liabilities of a regulated entity in default poses of title 5, United States Code, or any chise, property, and income shall be exempt shall be stayed from further proceedings for other provision of law; or from all taxation now or hereafter imposed a period of up to 45 days at the request of the ‘‘(ii) receive any salary or benefits for serv- by the United States, by any territory, de- limited-life regulated entity. Such period ice in any such capacity with respect to a pendency, or possession thereof, or by any may be modified upon the consent of all par- limited-life regulated entity in addition to State, county, municipality, or local taxing ties. such salary or benefits as are obtained authority. ‘‘(10) OBTAINING OF CREDIT AND INCURRING through employment with the Agency or ‘‘(6) WINDING UP.— OF DEBT.— such Federal instrumentality.

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‘‘(13) ADDITIONAL POWERS.—In addition to (1) in sections 1365 (12 U.S.C. 4615) through rector may (if the deficiency is not cor- any other powers granted under this sub- 1369D (12 U.S.C. 4623), but not including sec- rected) deem the regulated entity to be en- section, a limited-life regulated entity tion 1367 (12 U.S.C. 4617) as amended by sec- gaging in an unsafe or unsound practice for may— tion 349 of this title— purposes of this subsection.’’; ‘‘(A) extend a maturity date or change in (A) by striking ‘‘An enterprise’’ each place (2) in subsection (c)(2), by striking ‘‘enter- an interest rate or other term of outstanding such term appears and inserting ‘‘A regu- prise, executive officer, or director’’ and in- securities; lated entity’’; serting ‘‘regulated entity or regulated enti- ‘‘(B) issue securities of the limited-life reg- (B) by striking ‘‘an enterprise’’ each place ty-affiliated party’’; and ulated entity, for cash, for property, for ex- such term appears and inserting ‘‘a regulated (3) in subsection (d)— isting securities, or in exchange for claims or entity’’; and (A) in the matter preceding paragraph (1), interests, or for any other appropriate pur- (C) by striking ‘‘the enterprise’’ each place by striking ‘‘enterprise, executive officer, or poses; and such term appears and inserting ‘‘the regu- director’’ and inserting ‘‘regulated entity or ‘‘(C) take any other action not incon- lated entity’’; regulated entity-affiliated party’’; sistent with this section. (2) in section 1366 (12 U.S.C. 4616)— (B) in paragraph (1)— ‘‘(j) OTHER EXEMPTIONS.—When acting as a (A) in subsection (b)(7), by striking ‘‘sec- (i) by striking ‘‘an executive officer or a di- receiver, the following provisions shall apply tion 1369 (excluding subsection (a)(1) and rector’’ and inserting ‘‘a regulated entity af- with respect to the Agency: (2))’’ and inserting ‘‘section 1367’’; and filiated party’’; and ‘‘(1) EXEMPTION FROM TAXATION.—The (B) in subsection (d), by striking ‘‘the en- (ii) by inserting ‘‘(including reimburse- Agency, including its franchise, its capital, terprises’’ and inserting ‘‘the regulated enti- ment of compensation under section 1318)’’ reserves, and surplus, and its income, shall ties’’; after ‘‘reimbursement’’; be exempt from all taxation imposed by any (3) in section 1368(d) (12 U.S.C. 4618(d)), by (C) in paragraph (6), by striking ‘‘and’’ at State, country, municipality, or local taxing striking ‘‘Committee on Banking, Finance the end; authority, except that any real property of and Urban Affairs’’ and inserting ‘‘Com- (D) by redesignating paragraph (7) as para- the Agency shall be subject to State, terri- mittee on Financial Services’’; graph (8); and torial, county, municipal, or local taxation (4) in section 1369C (12 U.S.C. 4622)— (E) by inserting after paragraph (6) the fol- to the same extent according to its value as (A) in subsection (a)(4), by striking ‘‘ac- lowing new paragraph: other real property is taxed, except that, tivities (including existing and new pro- ‘‘(7) to effect an attachment on a regulated notwithstanding the failure of any person to grams)’’ and inserting ‘‘activities, services, entity or regulated entity-affiliated party challenge an assessment under State law of undertakings, and offerings (including exist- subject to an order under this section or sec- the value of such property, and the tax ing and new products (as such term is de- tion 1372; and’’. thereon, shall be determined as of the period fined in section 1321(f))’’; and SEC. 352. TEMPORARY CEASE-AND-DESIST PRO- for which such tax is imposed. (B) in subsection (c), by striking ‘‘any en- CEEDINGS. ‘‘(2) EXEMPTION FROM ATTACHMENT AND terprise’’ and inserting ‘‘any regulated enti- Section 1372 of the Housing and Commu- LIENS.—No property of the Agency shall be ty’’; and nity Development Act of 1992 (12 U.S.C. 4632) subject to levy, attachment, garnishment, (5) in subsections (a) and (d) of section is amended— foreclosure, or sale without the consent of 1369D, by striking ‘‘section 1366 or 1367 or ac- (1) by striking subsection (a) and inserting the Agency, nor shall any involuntary lien tion under section 1369)’’ each place such the following new subsection: attach to the property of the Agency. phrase appears and inserting ‘‘section 1367)’’. ‘‘(a) GROUNDS FOR ISSUANCE.—Whenever the Director determines that the violation or ‘‘(3) EXEMPTION FROM PENALTIES AND CHAPTER 4—ENFORCEMENT ACTIONS FINES.—The Agency shall not be liable for threatened violation or the unsafe or un- SEC. 351. CEASE-AND-DESIST PROCEEDINGS. any amounts in the nature of penalties or sound practice or practices specified in the Section 1371 of the Housing and Commu- fines, including those arising from the fail- notice of charges served upon the regulated nity Development Act of 1992 (12 U.S.C. 4631) ure of any person to pay any real property, entity or any regulated entity-affiliated is amended— personal property, probate, or recording tax party pursuant to section 1371(a), or the con- (1) by striking subsections (a) and (b) and or any recording or filing fees when due. tinuation thereof, is likely to cause insol- inserting the following new subsections: ‘‘(k) PROHIBITION OF CHARTER REVOCA- vency or significant dissipation of assets or ‘‘(a) ISSUANCE FOR UNSAFE OR UNSOUND TION.—In no case may a receiver appointed earnings of the regulated entity, or is likely PRACTICES AND VIOLATIONS OF RULES OR pursuant to this section revoke, annul, or to weaken the condition of the regulated en- LAWS.—If, in the opinion of the Director, a terminate the charter of a regulated entity. tity prior to the completion of the pro- regulated entity or any regulated entity-af- ‘‘(l) PRESERVATION OF BANKRUPTCY LAW .— ceedings conducted pursuant to sections 1371 Nothing in this Act shall be construed to filiated party is engaging or has engaged, or and 1373, the Director may issue a temporary modify, impair, or supersede the operation of the Director has reasonable cause to believe order requiring the regulated entity or such any provision of title 11 of the United States that the regulated entity or any regulated party to cease and desist from any such vio- Code, or the operation of any provision of entity-affiliated party is about to engage, in lation or practice and to take affirmative ac- title 28 of such Code that relates to cases an unsafe or unsound practice in conducting tion to prevent or remedy such insolvency, under such title 11, except as otherwise pro- the business of the regulated entity or is vio- dissipation, condition, or prejudice pending vided in section 1367(b) of this Act and except lating or has violated, or the Director has completion of such proceedings. Such order that a regulated entity may not be a debtor reasonable cause to believe that the regu- may include any requirement authorized under such title 11.’’. lated entity or any regulated entity-affili- under section 1371(d).’’; (b) CONFORMING AMENDMENTS.— ated party is about to violate, a law, rule, or (2) in subsection (b), by striking ‘‘enter- (1) HOUSING AND COMMUNITY DEVELOPMENT regulation, or any condition imposed in writ- prise, executive officer, or director’’ and in- ACT OF 1992.—Subtitle B of title XIII of the ing by the Director in connection with the serting ‘‘regulated entity or regulated enti- Housing and Community Development Act of granting of any application or other request ty-affiliated party’’; 1992 is amended by striking sections 1369 (12 by the regulated entity or any written agree- (3) in subsection (d)— U.S.C. 4619), 1369A (12 U.S.C. 4620), and 1369B ment entered into with the Director, the Di- (A) by striking ‘‘An enterprise, executive (12 U.S.C. 4621). rector may issue and serve upon the regu- officer, or director’’ and inserting ‘‘A regu- (2) FEDERAL HOME LOAN BANKS.—Section 25 lated entity or such party a notice of charges lated entity or regulated entity-affiliated of the Federal Home Loan Bank Act (12 in respect thereof. The Director may not, party’’; and U.S.C. 1445) is amended to read as follows: pursuant to this section, enforce compliance (B) by striking ‘‘the enterprise, executive ‘‘SEC. 25. SUCCESSION OF FEDERAL HOME LOAN with any housing goal established under sub- officer, or director’’ and inserting ‘‘the regu- BANKS. part B of part 2 of subtitle A of this title, lated entity or regulated entity-affiliated ‘‘Each Federal Home Loan Bank shall have with section 1336 or 1337 of this title, with party’’; and succession until it is voluntarily merged subsection (m) or (n) of section 309 of the (4) by striking subsection (e) and in insert- with another Bank under this Act, or until it Federal National Mortgage Association ing the following new subsection: is merged, reorganized, rehabilitated, liq- Charter Act (12 U.S.C. 1723a(m), (n)), with ‘‘(e) ENFORCEMENT.—In the case of viola- uidated, or otherwise wound up by the Direc- subsection (e) or (f) of section 307 of the Fed- tion or threatened violation of, or failure to tor in accordance with the provisions of sec- eral Home Loan Mortgage Corporation Act obey, a temporary cease-and-desist order tion 1367 of the Housing and Community De- (12 U.S.C. 1456(e), (f)), or with paragraph (5) issued pursuant to this section, the Director velopment Act of 1992, or by further Act of of section 10(j) of the Federal Home Loan may apply to the United States District Congress.’’. Bank Act (12 U.S.C. 1430(j)). Court for the District of Columbia or the SEC. 349. CONFORMING AMENDMENTS. ‘‘(b) ISSUANCE FOR UNSATISFACTORY RAT- United States district court within the juris- Title XIII of the Housing and Community ING.—If a regulated entity receives, in its diction of which the headquarters of the reg- Development Act of 1992, as amended by the most recent report of examination, a less- ulated entity is located, for an injunction to preceding provisions of this title, is further than-satisfactory rating for asset quality, enforce such order, and, if the court deter- amended— management, earnings, or liquidity, the Di- mines that there has been such violation or

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PREJUDGMENT ATTACHMENT. ‘‘(B) in the case of any regulated entity, ‘‘(1) FIRST TIER.—Any regulated entity $2,000,000.’’; The Housing and Community Development which, or any regulated entity-affiliated Act of 1992 is amended by inserting after sec- (3) in subsection (c)(1)(B), by striking ‘‘en- party who— tion 1375 (12 U.S.C. 4635) the following new terprise, executive officer, or director’’ and ‘‘(A) violates any provision of this title, section: inserting ‘‘regulated entity or regulated en- any provision of any of the authorizing stat- tity-affiliated party’’; ‘‘SEC. 1375A. PREJUDGMENT ATTACHMENT. utes, or any order, condition, rule, or regula- ‘‘(a) IN GENERAL.—In any action brought (4) in subsection (d), by striking the first tion under any such title or statute, except pursuant to this title, or in actions brought sentence and inserting the following: ‘‘If a that the Director may not, pursuant to this in aid of, or to enforce an order in, any ad- regulated entity or regulated entity-affili- section, enforce compliance with any hous- ministrative or other civil action for money ated party fails to comply with an order of damages, restitution, or civil money pen- ing goal established under subpart B of part the Director imposing a civil money penalty alties brought pursuant to this title, the 2 of subtitle A of this title, with section 1336 under this section, after the order is no court may, upon application of the Director or 1337 of this title, with subsection (m) or longer subject to review as provided under or Attorney General, as applicable, issue a (n) of section 309 of the Federal National subsection (c)(1) and section 1374, the Direc- restraining order that— Mortgage Association Charter Act (12 U.S.C. tor may, in the discretion of the Director, ‘‘(1) prohibits any person subject to the 1723a(m), (n)), with subsection (e) or (f) of bring an action in the United States District proceeding from withdrawing, transferring, section 307 of the Federal Home Loan Mort- Court for the District of Columbia, or the removing, dissipating, or disposing of any gage Corporation Act (12 U.S.C. 1456(e), (f)), United States district court within the juris- funds, assets or other property; and or with paragraph (5) or (12) of section 10(j) diction of which the headquarters of the reg- ‘‘(2) appoints a person on a temporary basis of the Federal Home Loan Bank Act; ulated entity is located, to obtain a mone- to administer the restraining order. ‘‘(B) violates any final or temporary order tary judgment against the regulated entity ‘‘(b) STANDARD.— or notice issued pursuant to this title; or regulated entity affiliated party and such ‘‘(1) SHOWING.—Rule 65 of the Federal Rules ‘‘(C) violates any condition imposed in other relief as may be available, or request of Civil Procedure shall apply with respect to writing by the Director in connection with that the Attorney General of the United any proceeding under subsection (a) without the grant of any application or other request States bring such an action.’’; and regard to the requirement of such rule that by such regulated entity; or (5) in subsection (g), by striking ‘‘sub- the applicant show that the injury, loss, or ‘‘(D) violates any written agreement be- section (b)(3)’’ and inserting ‘‘this section, damage is irreparable and immediate. tween the regulated entity and the Director, unless authorized by the Director by rule, ‘‘(2) STATE PROCEEDING.—If, in the case of shall forfeit and pay a civil money penalty of regulation, or order’’. any proceeding in a State court, the court not more than $10,000 for each day during SEC. 356. REMOVAL AND PROHIBITION AUTHOR- determines that rules of civil procedure which such violation continues. ITY. available under the laws of such State pro- ‘‘(2) SECOND TIER.—Notwithstanding para- (a) IN GENERAL.—Subtitle C of title XIII of vide substantially similar protections to a graph (1)— the Housing and Community Development party’s right to due process as Rule 65 (as ‘‘(A) if a regulated entity, or a regulated Act of 1992 is amended— modified with respect to such proceeding by entity-affiliated party— (1) by redesignating sections 1377, 1378, paragraph (1)), the relief sought under sub- ‘‘(i) commits any violation described in 1379, 1379A, and 1379B (12 U.S.C. 4637–41) as section (a) may be requested under the laws any subparagraph of paragraph (1); sections 1379, 1379A, 1379B, 1379C, and 1379D, of such State.’’. ‘‘(ii) recklessly engages in an unsafe or un- respectively; and SEC. 354. ENFORCEMENT AND JURISDICTION. sound practice in conducting the affairs of (2) by inserting after section 1376 (12 U.S.C. Section 1375 of the Housing and Commu- such regulated entity; or 4636) the following new section: nity Development Act of 1992 (12 U.S.C. 4635) ‘‘(iii) breaches any fiduciary duty; and ‘‘SEC. 1377. REMOVAL AND PROHIBITION AU- is amended— ‘‘(B) the violation, practice, or breach— THORITY. (1) by striking subsection (a) and inserting ‘‘(i) is part of a pattern of misconduct; ‘‘(a) AUTHORITY TO ISSUE ORDER.—When- the following new subsection: ‘‘(ii) causes or is likely to cause more than ever the Director determines that— ‘‘(a) ENFORCEMENT.—The Director may, in a minimal loss to such regulated entity; or ‘‘(1) any regulated entity-affiliated party the discretion of the Director, apply to the ‘‘(iii) results in pecuniary gain or other has, directly or indirectly— United States District Court for the District benefit to such party, ‘‘(A) violated— of Columbia, or the United States district the regulated entity or regulated entity-af- ‘‘(i) any law or regulation; court within the jurisdiction of which the filiated party shall forfeit and pay a civil ‘‘(ii) any cease-and-desist order which has headquarters of the regulated entity is lo- penalty of not more than $50,000 for each day become final; cated, for the enforcement of any effective during which such violation, practice, or ‘‘(iii) any condition imposed in writing by and outstanding notice or order issued under breach continues. the Director in connection with the grant of this subtitle or subtitle B, or request that any application or other request by such reg- ‘‘(3) THIRD TIER.—Notwithstanding para- the Attorney General of the United States graphs (1) and (2), any regulated entity ulated entity; or bring such an action. Such court shall have which, or any regulated entity-affiliated ‘‘(iv) any written agreement between such jurisdiction and power to order and require regulated entity and the Director; party who— compliance with such notice or order.’’; and ‘‘(B) engaged or participated in any unsafe ‘‘(A) knowingly— (2) in subsection (b), by striking ‘‘or 1376’’ or unsound practice in connection with any ‘‘(i) commits any violation or engages in and inserting ‘‘1376, or 1377’’. regulated entity; or any conduct described in any subparagraph SEC. 355. CIVIL MONEY PENALTIES. ‘‘(C) committed or engaged in any act, of paragraph (1); Section 1376 of the Housing and Commu- omission, or practice which constitutes a ‘‘(ii) engages in any unsafe or unsound nity Development Act of 1992 (12 U.S.C. 4636) breach of such party’s fiduciary duty; practice in conducting the affairs of such is amended— ‘‘(2) by reason of the violation, practice, or regulated entity; or (1) in subsection (a)— breach described in any subparagraph of ‘‘(iii) breaches any fiduciary duty; and (A) in the matter preceding paragraph (1), paragraph (1)— ‘‘(B) knowingly or recklessly causes a sub- by striking ‘‘, or any executive officer or di- ‘‘(A) such regulated entity has suffered or rector’’ and inserting ‘‘or any regulated-enti- stantial loss to such regulated entity or a will probably suffer financial loss or other ty affiliated party’’; and substantial pecuniary gain or other benefit damage; or (B) in paragraph (1)— to such party by reason of such violation, ‘‘(B) such party has received financial gain (i) by striking ‘‘the Federal National Mort- practice, or breach, or other benefit by reason of such violation, gage Association Charter Act, the Federal shall forfeit and pay a civil penalty in an practice, or breach; and Home Loan Mortgage Corporation Act’’ and amount not to exceed the applicable max- ‘‘(3) such violation, practice, or breach— inserting ‘‘any provision of any of the au- imum amount determined under paragraph ‘‘(A) involves personal dishonesty on the thorizing statutes’’; (4) for each day during which such violation, part of such party; or (ii) by striking ‘‘or Act’’ and inserting ‘‘or practice, or breach continues. ‘‘(B) demonstrates willful or continuing statute’’; ‘‘(4) MAXIMUM AMOUNTS OF PENALTIES FOR disregard by such party for the safety or (iii) by striking ‘‘or subsection’’ and insert- ANY VIOLATION DESCRIBED IN PARAGRAPH (3).— soundness of such regulated entity, the Di- ing ‘‘, subsection’’; and The maximum daily amount of any civil pen- rector may serve upon such party a written (iv) by inserting ‘‘, or paragraph (5) or (12) alty which may be assessed pursuant to notice of the Director’s intention to remove of section 10(j) of the Federal Home Loan paragraph (3) for any violation, practice, or such party from office or to prohibit any fur- Bank Act’’ before the semicolon at the end; breach described in such paragraph is— ther participation by such party, in any

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manner, in the conduct of the affairs of any ‘‘(d) PROHIBITION OF CERTAIN SPECIFIC AC- in any manner in the conduct of the affairs regulated entity. TIVITIES.—Any person subject to an order of any regulated entity; and ‘‘(b) SUSPENSION ORDER.— issued under this section shall not— ‘‘(ii) prohibit the regulated entity from re- ‘‘(1) SUSPENSION OR PROHIBITION AUTHOR- ‘‘(1) participate in any manner in the con- leasing to or on behalf of the regulated enti- ITY.—If the Director serves written notice duct of the affairs of any regulated entity; ty-affiliated party any compensation or under subsection (a) to any regulated entity- ‘‘(2) solicit, procure, transfer, attempt to other payment of money or other thing of affiliated party of the Director’s intention to transfer, vote, or attempt to vote any proxy, current or potential value in connection issue an order under such subsection, the Di- consent, or authorization with respect to with the period of any such suspension or rector may— any voting rights in any regulated entity; with any resignation, removal, retirement, ‘‘(A) suspend such party from office or pro- ‘‘(3) violate any voting agreement pre- or other termination of employment or of- hibit such party from further participation viously approved by the Director; or fice of the party. in any manner in the conduct of the affairs ‘‘(4) vote for a director, or serve or act as ‘‘(B) PROVISIONS APPLICABLE TO NOTICE.— of the regulated entity, if the Director— a regulated entity-affiliated party. ‘‘(i) COPY.—A copy of any notice under ‘‘(i) determines that such action is nec- ‘‘(e) INDUSTRY-WIDE PROHIBITION.— paragraph (1)(A) shall also be served upon essary for the protection of the regulated en- ‘‘(1) IN GENERAL.—Except as provided in the regulated entity. tity; and paragraph (2), any person who, pursuant to ‘‘(ii) EFFECTIVE PERIOD.—A suspension or ‘‘(ii) serves such party with written notice an order issued under this section, has been prohibition under subparagraph (A) shall re- of the suspension order; and removed or suspended from office in a regu- main in effect until the information, indict- ‘‘(B) prohibit the regulated entity from re- lated entity or prohibited from participating ment, or complaint referred to in such sub- leasing to or on behalf of the regulated enti- in the conduct of the affairs of a regulated paragraph is finally disposed of or until ter- ty-affiliated party any compensation or entity may not, while such order is in effect, minated by the Director. other payment of money or other thing of continue or commence to hold any office in, ‘‘(2) REMOVAL OR PROHIBITION.— current or potential value in connection or participate in any manner in the conduct ‘‘(A) IN GENERAL.—If a judgment of convic- with any resignation, removal, retirement, of the affairs of, any regulated entity. tion or an agreement to enter a pretrial di- or other termination of employment or of- ‘‘(2) EXCEPTION IF DIRECTOR PROVIDES WRIT- version or other similar program is entered fice of the party. TEN CONSENT.—If, on or after the date an against a regulated entity-affiliated party in ‘‘(2) EFFECTIVE PERIOD.—Any suspension order is issued under this section which re- connection with a crime described in para- order issued under this subsection— moves or suspends from office any regulated graph (1)(A), at such time as such judgment ‘‘(A) shall become effective upon service; entity-affiliated party or prohibits such is not subject to further appellate review, and party from participating in the conduct of the Director may, if continued service or ‘‘(B) unless a court issues a stay of such the affairs of a regulated entity, such party participation by such party may pose a order under subsection (g) of this section, receives the written consent of the Director, threat to the regulated entity or impair pub- shall remain in effect and enforceable until— the order shall, to the extent of such con- lic confidence in the regulated entity, issue ‘‘(i) the date the Director dismisses the sent, cease to apply to such party with re- and serve upon such party an order that— charges contained in the notice served under spect to the regulated entity described in the ‘‘(i) removes such party from office or pro- subsection (a) with respect to such party; or written consent. If the Director grants such hibits such party from further participation in any manner in the conduct of the affairs ‘‘(ii) the effective date of an order issued a written consent, it shall publicly disclose of the regulated entity without the prior by the Director to such party under sub- such consent. written consent of the Director; and section (a). ‘‘(3) VIOLATION OF PARAGRAPH (1) TREATED ‘‘(ii) prohibits the regulated entity from ‘‘(3) COPY OF ORDER.—If the Director issues AS VIOLATION OF ORDER.—Any violation of releasing to or on behalf of the regulated en- a suspension order under this subsection to paragraph (1) by any person who is subject to tity-affiliated party any compensation or any regulated entity-affiliated party, the Di- an order described in such subsection shall other payment of money or other thing of rector shall serve a copy of such order on be treated as a violation of the order. current or potential value in connection any regulated entity with which such party ‘‘(f) APPLICABILITY.—This section shall with the termination of employment or of- is affiliated at the time such order is issued. only apply to a person who is an individual, fice of the party. ‘‘(c) NOTICE, HEARING, AND ORDER.—A no- unless the Director specifically finds that it ‘‘(B) PROVISIONS APPLICABLE TO ORDER.— tice of intention to remove a regulated enti- should apply to a corporation, firm, or other ‘‘(i) COPY.—A copy of any order under para- ty-affiliated party from office or to prohibit business enterprise. ‘‘(g) STAY OF SUSPENSION AND PROHIBITION graph (2)(A) shall also be served upon the such party from participating in the conduct OF REGULATED ENTITY-AFFILIATED PARTY.— regulated entity, whereupon the regulated of the affairs of a regulated entity shall con- Within 10 days after any regulated entity-af- entity-affiliated party who is subject to the tain a statement of the facts constituting filiated party has been suspended from office order (if a director or an officer) shall cease grounds for such action, and shall fix a time and/or prohibited from participation in the to be a director or officer of such regulated and place at which a hearing will be held on conduct of the affairs of a regulated entity entity. such action. Such hearing shall be fixed for under this section, such party may apply to ‘‘(ii) EFFECT OF ACQUITTAL.—A finding of a date not earlier than 30 days nor later than the United States District Court for the Dis- not guilty or other disposition of the charge 60 days after the date of service of such no- trict of Columbia, or the United States dis- shall not preclude the Director from insti- tice, unless an earlier or a later date is set trict court for the judicial district in which tuting proceedings after such finding or dis- by the Director at the request of (1) such the headquarters of the regulated entity is position to remove such party from office or party, and for good cause shown, or (2) the located, for a stay of such suspension and/or to prohibit further participation in regulated Attorney General of the United States. Un- prohibition and any prohibition under sub- entity affairs, and to prohibit compensation less such party shall appear at the hearing in section (b)(1)(B) pending the completion of or other payment of money or other thing of person or by a duly authorized representa- the administrative proceedings pursuant to current or potential value in connection tive, such party shall be deemed to have con- the notice served upon such party under this with any resignation, removal, retirement, sented to the issuance of an order of such re- section, and such court shall have jurisdic- or other termination of employment or of- moval or prohibition. In the event of such tion to stay such suspension and/or prohibi- fice of the party, pursuant to subsections (a), consent, or if upon the record made at any tion. (d), or (e) of this section. such hearing the Director shall find that any ‘‘(h) SUSPENSION OR REMOVAL OF REGU- ‘‘(iii) EFFECTIVE PERIOD.—Any notice of of the grounds specified in such notice have LATED ENTITY-AFFILIATED PARTY CHARGED suspension or order of removal issued under been established, the Director may issue WITH FELONY.— this subsection shall remain effective and such orders of suspension or removal from ‘‘(1) SUSPENSION OR PROHIBITION.— outstanding until the completion of any office, or prohibition from participation in ‘‘(A) IN GENERAL.—Whenever any regulated hearing or appeal authorized under para- the conduct of the affairs of the regulated entity-affiliated party is charged in any in- graph (4) unless terminated by the Director. entity, as it may deem appropriate, together formation, indictment, or complaint, with ‘‘(3) AUTHORITY OF REMAINING BOARD MEM- with an order prohibiting compensation de- the commission of or participation in a BERS.—If at any time, because of the suspen- scribed in subsection (b)(1)(B). Any such crime involving dishonesty or breach of trust sion of one or more directors pursuant to order shall become effective at the expira- which is punishable by imprisonment for a this section, there shall be on the board of tion of 30 days after service upon such regu- term exceeding one year under State or Fed- directors of a regulated entity less than a lated entity and such party (except in the eral law, the Director may, if continued serv- quorum of directors not so suspended, all case of an order issued upon consent, which ice or participation by such party may pose powers and functions vested in or exercisable shall become effective at the time specified a threat to the regulated entity or impair by such board shall vest in and be exer- therein). Such order shall remain effective public confidence in the regulated entity, by cisable by the director or directors on the and enforceable except to such extent as it is written notice served upon such party— board not so suspended, until such time as stayed, modified, terminated, or set aside by ‘‘(i) suspend such party from office or pro- there shall be a quorum of the board of direc- action of the Director or a reviewing court. hibit such party from further participation tors. In the event all of the directors of a

VerDate Mar 15 2010 15:08 Nov 08, 2010 Jkt 069102 PO 00000 Frm 00074 Fmt 0688 Sfmt 0634 E:\BR08\H08MY8.003 H08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD 8218 CONGRESSIONAL RECORD—HOUSE, Vol. 154, Pt. 6 May 8, 2008 regulated entity are suspended pursuant to regulated entity-affiliated party concerned, (2) by inserting ‘‘or request that the Attor- this section, the Director shall appoint per- or an order issued under subsection (h) of ney General of the United States bring such sons to serve temporarily as directors in this section) by the filing in the United an action,’’ after ‘‘District of Columbia,’’; their place and stead pending the termi- States Court of Appeals for the District of and nation of such suspensions, or until such Columbia Circuit or court of appeals of the (3) by striking ‘‘or may, under the direc- time as those who have been suspended cease United States for the circuit in which the tion and control of the Attorney General, to be directors of the regulated entity and headquarters of the regulated entity is lo- bring such an action’’. their respective successors take office. cated, within 30 days after the date of service SEC. 359. CONFORMING AMENDMENTS. ‘‘(4) HEARING REGARDING CONTINUED PAR- of such order, a written petition praying Subtitle C of title XIII of the Housing and TICIPATION.—Within 30 days from service of that the order of the Director be modified, Community Development Act of 1992 (12 any notice of suspension or order of removal terminated, or set aside. A copy of such peti- U.S.C. 4631 et seq.), as amended by the pre- issued pursuant to paragraph (1) or (2) of this tion shall be forthwith transmitted by the ceding provisions of this title, is amended— subsection, the regulated entity-affiliated clerk of the court to the Director, and there- (1) in section 1372(c)(1) (12 U.S.C. 4632(c)), party concerned may request in writing an upon the Director shall file in the court the by striking ‘‘that enterprise’’ and inserting opportunity to appear before the Director to record in the proceeding, as provided in sec- ‘‘that regulated entity’’; show that the continued service to or par- tion 2112 of title 28, United States Code. (2) in section 1379 (12 U.S.C. 4637), as so re- ticipation in the conduct of the affairs of the Upon the filing of such petition, such court designated by section 356(a)(1) of this title— regulated entity by such party does not, or is shall have jurisdiction, which upon the filing (A) by inserting ‘‘, or of a regulated entity- not likely to, pose a threat to the interests of the record shall (except as provided in the affiliated party,’’ before ‘‘shall not affect’’; of the regulated entity or threaten to impair last sentence of paragraph (1)) be exclusive, and public confidence in the regulated entity. to affirm, modify, terminate, or set aside, in (B) by striking ‘‘such director or executive Upon receipt of any such request, the Direc- whole or in part, the order of the Director. officer’’ each place such term appears and in- tor shall fix a time (not more than 30 days Review of such proceedings shall be had as serting ‘‘such director, executive officer, or after receipt of such request, unless extended provided in chapter 7 of title 5, United States regulated entity-affiliated party’’; at the request of such party) and place at Code. The judgment and decree of the court (3) in section 1379A (12 U.S.C. 4638), as so which such party may appear, personally or shall be final, except that the same shall be redesignated by section 356(a)(1) of this title, through counsel, before one or more mem- subject to review by the Supreme Court upon by inserting ‘‘or against a regulated entity- bers of the Director or designated employees certiorari, as provided in section 1254 of title affiliated party,’’ before ‘‘or impair’’; of the Director to submit written materials 28, United States Code. (4) by striking ‘‘An enterprise’’ each place (or, at the discretion of the Director, oral ‘‘(3) PROCEEDINGS NOT TREATED AS STAY.— such term appears in such subtitle and in- testimony) and oral argument. Within 60 The commencement of proceedings for judi- serting ‘‘A regulated entity’’; days of such hearing, the Director shall no- cial review under paragraph (2) shall not, un- (5) by striking ‘‘an enterprise’’ each place tify such party whether the suspension or less specifically ordered by the court, oper- such term appears in such subtitle and in- prohibition from participation in any man- ate as a stay of any order issued by the Di- serting ‘‘a regulated entity’’; ner in the conduct of the affairs of the regu- rector.’’. (6) by striking ‘‘the enterprise’’ each place lated entity will be continued, terminated, (b) CONFORMING AMENDMENTS.— such term appears in such subtitle and in- or otherwise modified, or whether the order (1) 1992 ACT.—Section 1317(f) of the Housing serting ‘‘the regulated entity’’; and removing such party from office or prohib- and Community Development Act of 1992 (12 (7) by striking ‘‘any enterprise’’ each place iting such party from further participation U.S.C. 4517(f)) is amended by striking ‘‘sec- such term appears in such subtitle and in- in any manner in the conduct of the affairs tion 1379B’’ and inserting ‘‘section 1379D’’. serting ‘‘any regulated entity’’. of the regulated entity, and prohibiting com- (2) FANNIE MAE CHARTER ACT.—The second CHAPTER 5—GENERAL PROVISIONS pensation in connection with termination sentence of subsection (b) of section 308 of SEC. 361. BOARDS OF ENTERPRISES. will be rescinded or otherwise modified. Such the Federal National Mortgage Association (a) FANNIE MAE.— notification shall contain a statement of the Charter Act (12 U.S.C. 1723(b)) is amended by (1) IN GENERAL.—Section 308(b) of the Fed- basis for the Director’s decision, if adverse to striking ‘‘The’’ and inserting ‘‘Except to the eral National Mortgage Association Charter such party. The Director is authorized to extent that action under section 1377 of the Act (12 U.S.C. 1723(b)) is amended— prescribe such rules as may be necessary to Housing and Community Development Act of (A) in the first sentence, by striking effectuate the purposes of this subsection. 1992 temporarily results in a lesser number, ‘‘eighteen persons, five of whom shall be ap- ‘‘(i) HEARINGS AND JUDICIAL REVIEW.— the’’. pointed annually by the President of the ‘‘(1) VENUE AND PROCEDURE.—Any hearing (3) FREDDIE MAC ACT.—The second sentence United States, and the remainder of whom’’ provided for in this section shall be held in of subparagraph (A) of section 303(a)(2) of the and inserting ‘‘13 persons, or such other the District of Columbia or in the Federal ju- Federal Home Loan Mortgage Corporation number that the Director determines appro- dicial district in which the headquarters of Act (12 U.S.C. 1452(a)(2)(A)) is amended by priate, who’’; the regulated entity is located, unless the striking ‘‘The’’ and inserting ‘‘Except to the (B) in the second sentence, by striking ‘‘ap- party afforded the hearing consents to an- extent that action under section 1377 of the pointed by the President’’; other place, and shall be conducted in ac- Housing and Community Development Act of (C) in the third sentence— cordance with the provisions of chapter 5 of 1992 temporarily results in a lesser number, (i) by striking ‘‘appointed or’’; and title 5, United States Code. After such hear- the’’. (ii) by striking ‘‘, except that any such ap- ing, and within 90 days after the Director has SEC. 357. CRIMINAL PENALTY. pointed member may be removed from office notified the parties that the case has been Subtitle C of title XIII of the Housing and by the President for good cause’’; submitted to it for final decision, it shall Community Development Act of 1992 (12 (D) in the fourth sentence, by striking render its decision (which shall include find- U.S.C. 4631 et seq.) is amended by inserting ‘‘elective’’; and ings of fact upon which its decision is predi- after section 1377 (as added by the preceding (E) by striking the fifth sentence. cated) and shall issue and serve upon each provisions of this title) the following new (2) TRANSITIONAL PROVISION.—The amend- party to the proceeding an order or orders section: ments made by paragraph (1) shall not apply consistent with the provisions of this sec- ‘‘SEC. 1378. CRIMINAL PENALTY. to any appointed position of the board of di- tion. Judicial review of any such order shall ‘‘Whoever, being subject to an order in ef- rectors of the Federal National Mortgage As- be exclusively as provided in this subsection. fect under section 1377, without the prior sociation until the expiration of the annual Unless a petition for review is timely filed in written approval of the Director, knowingly term for such position during which the ef- a court of appeals of the United States, as participates, directly or indirectly, in any fective date under section 365 occurs. provided in paragraph (2), and thereafter manner (including by engaging in an activity (b) FREDDIE MAC.— until the record in the proceeding has been specifically prohibited in such an order) in (1) IN GENERAL.—Section 303(a)(2) of the filed as so provided, the Director may at any the conduct of the affairs of any regulated Federal Home Loan Mortgage Corporation time, upon such notice and in such manner entity shall be fined not more than $1,000,000, Act (12 U.S.C. 1452(a)(2)) is amended— as it shall deem proper, modify, terminate, imprisoned for not more than 5 years, or (A) in subparagraph (A)— or set aside any such order. Upon such filing both.’’. (i) in the first sentence, by striking ‘‘18 of the record, the Director may modify, ter- SEC. 358. SUBPOENA AUTHORITY. persons, 5 of whom shall be appointed annu- minate, or set aside any such order with per- Section 1379D(c) of the Housing and Com- ally by the President of the United States mission of the court. munity Development Act of 1992 (12 U.S.C. and the remainder of whom’’ and inserting ‘‘(2) REVIEW OF ORDER.—Any party to any 4641(c)), as so redesignated by section ‘‘13 persons, or such other number as the Di- proceeding under paragraph (1) may obtain a 356(a)(1) of this title, is further amended— rector determines appropriate, who’’; and review of any order served pursuant to para- (1) by striking ‘‘request the Attorney Gen- (ii) in the second sentence, by striking ‘‘ap- graph (1) (other than an order issued with eral of the United States to’’ and inserting ‘‘, pointed by the President of the United the consent of the regulated entity or the in the discretion of the Director,’’; States’’;

VerDate Mar 15 2010 15:08 Nov 08, 2010 Jkt 069102 PO 00000 Frm 00075 Fmt 0688 Sfmt 0634 E:\BR08\H08MY8.003 H08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD May 8, 2008 CONGRESSIONAL RECORD—HOUSE, Vol. 154, Pt. 6 8219 (B) in subparagraph (B)— ‘‘Director of the Federal Housing Finance tional Mortgage Association and the Federal (i) by striking ‘‘such or’’; and Agency.’’. Home Loan Mortgage Corporation should be (ii) by striking ‘‘, except that any ap- (2) EXCLUSION FROM SENIOR EXECUTIVE taxed or otherwise assessed a monetary pointed member may be removed from office SERVICE.—Section 3132(a)(1)(D) of title 5, price; and by the President for good cause’’; and United States Code, is amended— (D) such other alternatives as the Director (C) in subparagraph (C)— (A) by striking ‘‘the Federal Housing Fi- considers appropriate; (i) by striking the first sentence; and nance Board,’’; and (2) examine all of the issues involved in (ii) by striking ‘‘elective’’. (B) by striking ‘‘the Office of Federal Hous- making the transition to a completely pri- (2) TRANSITIONAL PROVISION.—The amend- ing Enterprise Oversight of the Department vate secondary mortgage market system; ments made by paragraph (1) shall not apply of Housing and Urban Development’’ and in- (3) examine the technological advance- to any appointed position of the board of di- serting ‘‘the Federal Housing Finance Agen- ments the private sector has made in pro- rectors of the Federal Home Loan Mortgage cy’’. viding liquidity in the secondary mortgage Corporation until the expiration of the an- (f) INSPECTOR GENERAL ACT OF 1978.—Sec- market and how such advancements have af- nual term for such position during which the tion 8G(a)(2) of the Inspector General Act of fected liquidity in the secondary mortgage effective date under section 365 occurs. 1978 (5 U.S.C. App.) is amended by striking market; and SEC. 362. REPORT ON PORTFOLIO OPERATIONS, ‘‘Federal Housing Finance Board’’ and in- (4) examine how taxpayers would be im- SAFETY AND SOUNDNESS, AND MIS- serting ‘‘Federal Housing Finance Agency’’. pacted by each alternative system, including SION OF ENTERPRISES. (g) FEDERAL DEPOSIT INSURANCE ACT.—Sec- the complete privatization of the Federal Not later than the expiration of the 12- tion 11(t)(2)(A) of the Federal Deposit Insur- National Mortgage Association and the Fed- month period beginning on the effective date ance Act (12 U.S.C.1821(t)(2)(A)) is amended eral Home Loan Mortgage Corporation. under section 365, the Director of the Federal by adding at the end the following new (c) REPORT.—The Director of the Federal Housing Finance Agency shall submit a re- clause: Housing Finance Agency shall submit a re- port to the Congress which shall include— ‘‘(vii) The Federal Housing Finance Agen- port to the Congress on the study not later (1) a description of the portfolio holdings of cy.’’. than the expiration of the 24-month period the enterprises (as such term is defined in (h) 1997 EMERGENCY SUPPLEMENTAL APPRO- beginning on the effective date under section section 1303 of the Housing and Community PRIATIONS ACT.—Section 10001 of the 1997 365. Development Act of 1992 (12 U.S.C. 4502) in Emergency Supplemental Appropriations SEC. 365. EFFECTIVE DATE. mortgages (including whole loans and mort- Act for Recovery From Natural Disasters, Except as specifically provided otherwise gage-backed securities), non-mortgages, and and for Overseas Peacekeeping Efforts, In- in this subtitle, this subtitle shall take ef- other assets; cluding Those In Bosnia (42 U.S.C. 3548) is fect on and the amendments made by this (2) a description of the risk implications amended— subtitle shall take effect on, and shall apply for the enterprises of such holdings and the (1) by striking ‘‘the Government National beginning on, the expiration of the 6-month consequent risk management undertaken by Mortgage Association, and the Office of Fed- period beginning on the date of the enact- the enterprises (including the use of deriva- eral Housing Enterprise Oversight’’ and in- ment of this Act. tives for hedging purposes), compared with serting ‘‘and the Government National Mort- Subtitle B—Federal Home Loan Banks off-balance sheet liabilities of the enter- gage Association’’; and prises (including mortgage-backed securities (2) by striking ‘‘, the Government National SEC. 371. DEFINITIONS. guaranteed by the enterprises); Mortgage Association, or the Office of Fed- Section 2 of the Federal Home Loan Bank (3) an analysis of portfolio holdings for eral Housing Enterprise Oversight’’ and in- Act (12 U.S.C. 1422) is amended— safety and soundness purposes; serting ‘‘or the Government National Mort- (1) by striking paragraphs (1), (10), and (11); (4) an assessment of whether portfolio gage Association’’. (2) by redesignating paragraphs (2) through holdings fulfill the mission purposes of the (i) NATIONAL HOMEOWNERSHIP TRUST ACT.— (9) as paragraphs (1) through (8), respec- enterprises under the Federal National Mort- Section 302(b)(4) of the Cranston-Gonzalez tively; gage Association Charter Act and the Fed- National Affordable Housing Act (42 U.S.C. (3) by redesignating paragraphs (12) and eral Home Loan Mortgage Corporation Act; 12851(b)(4)) is amended by striking ‘‘the (13) as paragraphs (9) and (10), respectively; and chairperson of the Federal Housing Finance and (5) an analysis of the potential systemic Board’’ and inserting ‘‘the Director of the (4) by adding at the end the following: risk implications for the enterprises, the Federal Housing Finance Agency’’. ‘‘(11) DIRECTOR.—The term ‘Director’ housing and capital markets, and the finan- SEC. 364. STUDY OF ALTERNATIVE SECONDARY means the Director of the Federal Housing cial system of portfolio holdings, and wheth- MARKET SYSTEMS. Finance Agency. er such holdings should be limited or reduced (a) IN GENERAL.—The Director of the Fed- ‘‘(12) AGENCY.—The term ‘Agency’ means over time. eral Housing Finance Agency, in consulta- the Federal Housing Finance Agency.’’. SEC. 363. CONFORMING AND TECHNICAL AMEND- tion with the Board of Governors of the Fed- SEC. 372. DIRECTORS. MENTS. eral Reserve System, the Secretary of the (a) ELECTION.—Section 7 of the Federal (a) 1992 ACT.—Title XIII of the Housing and Treasury, and the Secretary of Housing and Home Loan Bank Act (12 U.S.C. 1427) is Community Development Act of 1992 is Urban Development, shall conduct a com- amended— amended by striking section 1383 (12 U.S.C. prehensive study of the effects on financial (1) by striking subsection (a) and inserting 1451 note). and housing finance markets of alternatives the following: (b) TITLE 18, UNITED STATES CODE.—Sec- to the current secondary market system for ‘‘(a) NUMBER; ELECTION; QUALIFICATIONS; tion 1905 of title 18, United States Code, is housing finance, taking into consideration CONFLICTS OF INTEREST.— amended by striking ‘‘Office of Federal changes in the structure of financial and ‘‘(1) IN GENERAL.—The management of each Housing Enterprise Oversight’’ and inserting Federal Home Loan Bank shall be vested in ‘‘Federal Housing Finance Agency’’. housing finance markets and institutions (c) FLOOD DISASTER PROTECTION ACT OF since the creation of the Federal National a board of 13 directors, or such other number 1973.—Section 102(f)(3)(A) of the Flood Dis- Mortgage Association and the Federal Home as the Director determines appropriate, each aster Protection Act of 1973 (42 U.S.C. Loan Mortgage Corporation. of whom shall be a citizen of the United 4012a(f)(3)(A)) is amended by striking ‘‘Direc- (b) CONTENTS.—The study under this sec- States. All directors of a Bank who are not tor of the Office of Federal Housing Enter- tion shall— independent directors pursuant to paragraph prise Oversight of the Department of Hous- (1) include, among the alternatives to the (3) shall be elected by the members. ing and Urban Development’’ and inserting current secondary market system analyzed— ‘‘(2) MEMBER DIRECTORS.—A majority of the ‘‘Director of the Federal Housing Finance (A) repeal of the chartering Acts for the directors of each Bank shall be officers or di- Agency’’. Federal National Mortgage Association and rectors of a member of such Bank that is lo- (d) DEPARTMENT OF HOUSING AND URBAN the Federal Home Loan Mortgage Corpora- cated in the district in which such Bank is DEVELOPMENT ACT.—Section 5 of the Depart- tion; located. ment of Housing and Urban Development Act (B) establishing bank-like mechanisms for ‘‘(3) INDEPENDENT DIRECTORS.—At least (42 U.S.C. 3534) is amended by striking sub- granting new charters for limited purposed two-fifths of the directors of each Bank shall section (d). mortgage securitization entities; be independent directors, who shall be ap- (e) TITLE 5, UNITED STATES CODE.— (C) permitting the Director of the Federal pointed by the Director of the Federal Hous- (1) DIRECTOR’S PAY RATE.—Section 5313 of Housing Finance Agency to grant new char- ing Finance Agency from a list of individuals title 5, United States Code, is amended by ters for limited purpose mortgage recommended by the Federal Housing Enter- striking the item relating to the Director of securitization entities, which shall include prise Board. The Federal Housing Enterprise the Office of Federal Housing Enterprise analyzing the terms on which such charters Board may recommend individuals who are Oversight, Department of Housing and Urban should be granted, including whether such identified by the Board’s own independent Development and inserting the following new charters should be sold, or whether such process or included on a list of individuals item: charters and the charters for the Federal Na- recommended by the board of directors of

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the Bank involved, which shall be submitted (1) IN GENERAL.—Section 7(d) of the Federal (2) in section 6 (12 U.S.C. 1426(b)(1))— to the Federal Housing Enterprise Board by Home Loan Bank Act (12 U.S.C. 1427(d)) is (A) in subsection (b)(1), in the matter pre- such board of directors. The number of indi- amended— ceding subparagraph (A), by striking ‘‘Fi- viduals on any such list submitted by a (A) in the first sentence, by striking ‘‘3 nance Board approval’’ and inserting ‘‘ap- Bank’s board of directors shall be equal to at years’’ and inserting ‘‘4 years’’; and proval by the Director’’; and least two times the number of independent (B) in the second sentence— (B) in each of subsections (c)(4)(B) and directorships to be filled. All independent di- (i) by striking ‘‘Federal Home Loan Bank (d)(2), by striking ‘‘Finance Board regula- rectors appointed shall meet the following System Modernization Act of 1999’’ and in- tions’’ each place that term appears and in- criteria: serting ‘‘Federal Housing Finance Reform serting ‘‘regulations of the Director’’; ‘‘(A) IN GENERAL.—Each independent direc- Act of 2008’’; and (3) in section 8 (12 U.S.C. 1428), in the sec- tor shall be a bona fide resident of the dis- (ii) by striking ‘‘1/3’’ and inserting ‘‘1/4’’. tion heading, by striking ‘‘BY THE BOARD’’; trict in which such Bank is located. (2) SAVINGS PROVISION.—The amendments (4) in section 10(b) (12 U.S.C. 1430(b)), by ‘‘(B) PUBLIC INTEREST DIRECTORS.—At least made by paragraph (1) shall not apply to the striking ‘‘by formal resolution’’; 2 of the independent directors under this term of office of any director of a Federal (5) in section 10 (12 U.S.C. 1430), by adding paragraph of each Bank shall be representa- home loan bank who is serving as of the ef- at the end the following new subsection: tives chosen from organizations with more fective date of this subtitle under section ‘‘(k) MONITORING AND ENFORCING COMPLI- than a 2-year history of representing con- 381, including any director elected to fill a ANCE WITH AFFORDABLE HOUSING AND COMMU- sumer or community interests on banking vacancy in any such office. NITY INVESTMENT PROGRAM REQUIREMENTS.— services, credit needs, housing, community (c) CONTINUED SERVICE OF INDEPENDENT DI- The requirements under subsection (i) and (j) development, economic development, or fi- RECTORS AFTER EXPIRATION OF TERM.—Sec- that the Banks establish Community Invest- nancial consumer protections. tion 7(f)(2) of the Federal Home Loan Bank ment and Affordable Housing Programs, re- ‘‘(C) OTHER DIRECTORS.— Act (12 U.S.C. 1427(f)(2)) is amended— spectively, and contribute to the Affordable ‘‘(i) QUALIFICATIONS.—Each independent di- (1) in the second sentence, by striking ‘‘or Housing Program, shall be enforceable by rector that is not a public interest director the term of such office expires, whichever oc- the Director with respect to the Banks in the under subparagraph (B) shall have dem- curs first’’; same manner and to the same extent as the onstrated knowledge of, or experience in, fi- (2) by adding at the end the following new housing goals under subpart B of part 2 of nancial management, auditing and account- sentence: ‘‘An independent Bank director subtitle A of title XIII of the Housing and ing, risk management practices, derivatives, may continue to serve as a director after the Community Development Act of 1992 (12 project development, or organizational man- expiration of the term of such director until U.S.C. 4561 et seq.) are enforceable under sec- agement, or such other knowledge or exper- a successor is appointed.’’; tion 1336 of such Act with respect to the Fed- tise as the Director may provide by regula- (3) in the paragraph heading, by striking eral National Mortgage Association and the tion. ‘‘APPOINTED’’ and inserting ‘‘INDEPENDENT’’; Federal Home Loan Mortgage Corporation.’’; ‘‘(ii) CONSULTATION WITH BANKS.—In ap- and (6) in section 11 (12 U.S.C. 1431)— pointing other directors to serve on the (4) by striking ‘‘appointive’’ each place (A) in subsection (b)— board of a Federal home loan bank, the Di- such term appears and inserting ‘‘inde- (i) in the first sentence— rector of the Federal Housing Finance Agen- pendent’’. (I) by striking ‘‘The Board’’ and inserting cy may consult with each Federal home loan (d) CONFORMING AMENDMENTS.—Section ‘‘The Office of Finance, as agent for the bank about the knowledge, skills, and exper- 7(f)(3) of the Federal Home Loan Bank Act Banks,’’; and tise needed to assist the board in better ful- (12 U.S.C. 1427(f)(3)) is amended— (II) by striking ‘‘the Board’’ and inserting filling its responsibilities. (1) in the paragraph heading, by striking ‘‘such Office’’; and ‘‘(D) CONFLICTS OF INTEREST.—Notwith- ‘‘ELECTED’’ and inserting ‘‘MEMBER’’; and (ii) in the second and fourth sentences, by standing subsection (f)(2), an independent di- (2) by striking ‘‘elective’’ each place such striking ‘‘the Board’’ each place such term rector under this paragraph of a Bank may term appears in the first and third sentences appears and inserting ‘‘the Office of Fi- not, during such director’s term of office, and inserting ‘‘member’’. nance’’; serve as an officer of any Federal Home Loan (e) COMPENSATION.—Subsection (i) of sec- (B) in subsection (c)— tion 7 of the Federal Home Loan Bank Act Bank or as a director or officer of any mem- (i) by striking ‘‘the Board’’ the first place (12 U.S.C. 1427(i)) is amended to read as fol- ber of a Bank. such term appears and inserting ‘‘the Office lows: ‘‘(E) COMMUNITY DEMOGRAPHICS.—In ap- of Finance, as agent for the Banks,’’; and ‘‘(i) DIRECTORS’ COMPENSATION.— pointing independent directors of a Bank (ii) by striking ‘‘the Board’’ the second ‘‘(1) IN GENERAL.—Each Federal home loan pursuant to this paragraph, the Director bank may pay the directors on the board of place such term appears and inserting ‘‘such shall take into consideration the demo- directors for the bank reasonable and appro- Office’’; and graphic makeup of the community most priate compensation for the time required of (C) in subsection (f)— served by the Affordable Housing Program of such directors, and reasonable and appro- (i) by striking the two commas after ‘‘per- the Bank pursuant to section 10(j).’’; priate expenses incurred by such directors, mit’’ and inserting ‘‘or’’; and (2) in the first sentence of subsection (b), in connection with service on the board of di- (ii) by striking the comma after ‘‘require’’; by striking ‘‘elective directorship’’ and in- rectors, in accordance with resolutions (7) in section 15 (12 U.S.C. 1435), by insert- serting ‘‘member directorship established adopted by the board of directors and subject ing ‘‘or the Director’’ after ‘‘the Board’’; pursuant to subsection (a)(2)’’; to the approval of the Director. (8) in section 18 (12 U.S.C. 1438), by striking (3) in subsection (c)— subsection (b); ‘‘(2) ANNUAL REPORT BY THE BOARD.—The (A) by striking ‘‘elective’’ each place such Director shall include, in the annual report (9) in section 21 (12 U.S.C. 1441)— term appears and inserting ‘‘member’’, ex- submitted to the Congress pursuant to sec- (A) in subsection (b)— cept— tion 1319B of the Federal Housing Enter- (i) in paragraph (5), by striking ‘‘Chair- (i) in the second sentence, the second place prises Financial Safety and Soundness Act of person of the Federal Housing Finance such term appears; and 1992, information regarding the compensa- Board’’ and inserting ‘‘Director’’; and (ii) each place such term appears in the tion and expenses paid by the Federal home (ii) in the heading for paragraph (8), by fifth sentence; loan banks to the directors on the boards of striking ‘‘FEDERAL HOUSING FINANCE BOARD’’ (B) in the first sentence, by inserting after directors of the banks.’’. and inserting ‘‘DIRECTOR’’; and ‘‘less than one’’ the following: ‘‘or two, as de- (f) TRANSITION RULE.—Any member of the (B) in subsection (i), in the heading for termined by the board of directors of the ap- board of directors of a Federal Home Loan paragraph (2), by striking ‘‘FEDERAL HOUSING propriate Federal home loan bank,’’; and Bank serving as of the effective date under FINANCE BOARD’’ and inserting ‘‘DIRECTOR’’; (C) in the second sentence— section 381 may continue to serve as a mem- (10) in section 23 (12 U.S.C. 1443), by strik- (i) by inserting ‘‘(A) except as provided in ber of such board of directors for the remain- ing ‘‘Board of Directors of the Federal Hous- clause (B) of this sentence,’’ before ‘‘if at any der of the term of such office as provided in ing Finance Board’’ and inserting ‘‘Direc- time’’; and section 7 of the Federal Home Loan Bank tor’’; (ii) by inserting before the period at the Act, as in effect before such effective date. (11) by striking ‘‘the Board’’ each place end the following: ‘‘, and (B) clause (A) of SEC. 373. FEDERAL HOUSING FINANCE AGENCY such term appears in such Act (except in sec- this sentence shall not apply to the director- OVERSIGHT OF FEDERAL HOME tion 15 (12 U.S.C. 1435), section 21(f)(2) (12 ships of any Federal home loan bank result- LOAN BANKS. U.S.C. 1441(f)(2)), subsections (a), (k)(2)(B)(i), ing from the merger of any two or more such The Federal Home Loan Bank Act (12 and (n)(6)(C)(ii) of section 21A (12 U.S.C. banks’’; and U.S.C. 1421 et seq.), other than in provisions 1441a), subsections (f)(2)(C), and (k)(7)(B)(ii) (4) by striking ‘‘elective’’ each place such of that Act added or amended otherwise by of section 21B (12 U.S.C. 1441b), and the first term appears (except in subsections (c), (e), this title, is amended— two places such term appears in section 22 and (f)). (1) by striking sections 2A and 2B (12 U.S.C. (12 U.S.C. 1442)) and inserting ‘‘the Direc- (b) TERMS.— 1422a, 1422b); tor’’;

VerDate Mar 15 2010 15:08 Nov 08, 2010 Jkt 069102 PO 00000 Frm 00077 Fmt 0688 Sfmt 0634 E:\BR08\H08MY8.003 H08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD May 8, 2008 CONGRESSIONAL RECORD—HOUSE, Vol. 154, Pt. 6 8221 (12) by striking ‘‘The Board’’ each place SEC. 377. SECURITIES AND EXCHANGE COMMIS- Bank Act (12 U.S.C. 1422(10)), as so redesig- such term appears in such Act (except in sec- SION DISCLOSURE. nated by section 371(3) of this title, is amend- tions 7(e) (12 U.S.C. 1427(e)), and 11(b) (12 (a) IN GENERAL.—The Federal Home Loan ed by striking ‘‘$500,000,000’’ each place such U.S.C. 1431(b)) and inserting ‘‘The Director’’; Banks shall be exempt from compliance term appears and inserting ‘‘$1,000,000,000’’. (13) by striking ‘‘the Board’s’’ each place with— (b) USE OF ADVANCES FOR COMMUNITY DE- such term appears in such Act and inserting (1) sections 13(e), 14(a), 14(c), and 17A of the VELOPMENT ACTIVITIES.—Section 10(a) of the ‘‘the Director’s’’; Securities Exchange Act of 1934 and related Federal Home Loan Bank Act (12 U.S.C. (14) by striking ‘‘The Board’s’’ each place Commission regulations; and 1430(a)) is amended— such term appears in such Act and inserting (2) section 15 of that Act and related Secu- (1) in paragraph (2)(B)— ‘‘The Director’s’’; rities and Exchange Commission regulations (A) by striking ‘‘and’’; and (15) by striking ‘‘the Finance Board’’ each with respect to transactions in capital stock (B) by inserting ‘‘, and community develop- place such term appears in such Act and in- of the Banks. ment activities’’ before the period at the (b) MEMBER EXEMPTION.—The members of serting ‘‘the Director’’; end; the Federal Home Loan Banks shall be ex- (16) by striking ‘‘Federal Housing Finance (2) in paragraph (3)(E), by inserting ‘‘or empt from compliance with sections 13(d), Board’’ each place such term appears and in- community development activities’’ after 13(f), 13(g), 14(d), and 16 of the Securities Ex- serting ‘‘Director’’; change Act of 1934 and related Securities and ‘‘agriculture,’’; and (17) in section 11(i) (12 U.S.C. 1431(i), by Exchange Commission regulations with re- (3) in paragraph (6)— striking ‘‘the Chairperson of’’; and spect to their ownership of, or transactions (A) by striking ‘‘and’’; and (18) in section 21(e)(9) (12 U.S.C. 1441(e)(9)), in, capital stock of the Federal Home Loan (B) by inserting ‘‘, and ‘community devel- by striking ‘‘Chairperson of the’’. Banks. opment activities’ ’’ before ‘‘shall’’. SEC. 374. JOINT ACTIVITIES OF BANKS. (c) EXEMPTED AND GOVERNMENT SECURI- SEC. 379. TECHNICAL AND CONFORMING AMEND- MENTS. Section 11 of the Federal Home Loan Bank TIES.— Act (12 U.S.C. 1431) is amended by adding at (1) CAPITAL STOCK.—The capital stock (a) RIGHT TO FINANCIAL PRIVACY ACT OF the end the following new subsection: issued by each of the Federal Home Loan 1978.—Section 1113(o) of the Right to Finan- Banks under section 6 of the Federal Home cial Privacy Act of 1978 (12 U.S.C. 3413(o)) is ‘‘(l) JOINT ACTIVITIES.—Subject to the regu- Loan Bank Act are— amended— lation of the Director, any two or more Fed- (A) exempted securities within the mean- (1) by striking ‘‘Federal Housing Finance eral Home Loan Banks may establish a joint ing of section 3(a)(2) of the Securities Act of Board’’ and inserting ‘‘Federal Housing Fi- office for the purpose of performing func- 1933; and nance Agency’’; and tions for, or providing services to, the Banks (B) ‘‘exempted securities’’ within the (2) by striking ‘‘Federal Housing Finance on a common or collective basis, or may re- meaning of section 3(a)(12)(A) of the Securi- Board’s’’ and inserting ‘‘Federal Housing Fi- quire that the Office of Finance perform such ties Exchange Act of 1934. nance Agency’s’’. functions or services, but only if the Banks (2) OTHER OBLIGATIONS.—The debentures, (b) RIEGLE COMMUNITY DEVELOPMENT AND are otherwise authorized to perform such bonds, and other obligations issued under REGULATORY IMPROVEMENT ACT OF 1994.— functions or services individually.’’. section 11 of the Federal Home Loan Bank Section 117(e) of the Riegle Community De- SEC. 375. SHARING OF INFORMATION BETWEEN Act are— velopment and Regulatory Improvement Act FEDERAL HOME LOAN BANKS. (A) exempted securities within the mean- of 1994 (12 U.S.C. 4716(e)) is amended by strik- (a) IN GENERAL.—The Federal Home Loan ing of section 3(a)(2) of the Securities Act of ing ‘‘Federal Housing Finance Board’’ and Bank Act is amended by inserting after sec- 1933; inserting ‘‘Federal Housing Finance Agen- tion 20 (12 U.S.C. 1440) the following new sec- (B) ‘‘government securities’’ within the cy’’. tion: meaning of section 3(a)(42) of the Securities (c) TITLE 18, UNITED STATES CODE.—Title ‘‘SEC. 20A. SHARING OF INFORMATION BETWEEN Exchange Act of 1934; 18, United States Code, is amended by strik- FEDERAL HOME LOAN BANKS. (C) excluded from the definition of ‘‘gov- ing ‘‘Federal Housing Finance Board’’ each ernment securities broker’’ within section ‘‘(a) REGULATORY AUTHORITY.—The Direc- place such term appears in each of sections tor shall prescribe such regulations as may 3(a)(43) of the Securities Exchange Act of 212, 657, 1006, 1014, and inserting ‘‘Federal be necessary to ensure that each Federal 1934; Housing Finance Agency’’. Home Loan Bank has access to information (D) excluded from the definition of ‘‘gov- (d) MAHRA ACT OF 1997.—Section 517(b)(4) that the Bank needs to determine the nature ernment securities dealer’’ within section of the Multifamily Assisted Housing Reform and extent of its joint and several liability. 3(a)(44) of the Securities Exchange Act of and Affordability Act of 1997 (42 U.S.C. 1437f 1934; and note) is amended by striking ‘‘Federal Hous- ‘‘(b) NO WAIVER OF PRIVILEGE.—The Direc- (E) ‘‘government securities’’ within the tor shall not be deemed to have waived any ing Finance Board’’ and inserting ‘‘Federal meaning of section 2(a)(16) of the Investment privilege applicable to any information con- Housing Finance Agency’’. Company Act of 1940. (e) TITLE 44, UNITED STATES CODE.—Section cerning a Federal Home Loan Bank by trans- (d) EXEMPTION FROM REPORTING REQUIRE- ferring, or permitting the transfer of, that 3502(5) of title 44, United States Code, is MENTS.—The Federal Home Loan Banks shall amended by striking ‘‘Federal Housing Fi- information to any other Federal Home Loan be exempt from periodic reporting require- Bank for the purpose of enabling the recipi- nance Board’’ and inserting ‘‘Federal Hous- ments pertaining to— ing Finance Agency’’. ent to evaluate the nature and extent of its (1) the disclosure of related party trans- joint and several liability.’’. (f) ACCESS TO LOCAL TV ACT OF 2000.—Sec- actions that occur in the ordinary course of tion 1004(d)(2)(D)(iii) of the Launching Our (b) REGULATIONS.—The regulations re- business of the Banks with their members; Communities’ Access to Local Television quired under the amendment made by sub- and Act of 2000 (47 U.S.C. 1103(d)(2)(D)(iii)) is section (a) shall be issued in final form not (2) the disclosure of unregistered sales of amended by striking ‘‘Office of Federal later than 6 months after the effective date equity securities. Housing Enterprise Oversight, the Federal under section 381 of this title. (e) TENDER OFFERS.—The Securities and Housing Finance Board’’ and inserting ‘‘Fed- Exchange Commission’s rules relating to SEC. 376. REORGANIZATION OF BANKS AND VOL- eral Housing Finance Agency’’. tender offers shall not apply in connection UNTARY MERGER. (g) SARBANES-OXLEY ACT OF 2002.—Section with transactions in capital stock of the Section 26 of the Federal Home Loan Bank 105(b)(5)(B)(ii)(II) of the Sarbanes-Oxley Act Federal Home Loan Banks. Act (12 U.S.C. 1446) is amended— of 2002 (15 U.S.C. 7215(B)(5)(b)(ii)(II)) is (f) REGULATIONS.—In issuing any final reg- (1) by inserting ‘‘(a) REORGANIZATION.—’’ ulations to implement provisions of this sec- amended by inserting ‘‘and the Director of before ‘‘Whenever’’; and tion, the Securities and Exchange Commis- the Federal Housing Finance Agency’’ after (2) by striking ‘‘liquidated or’’ each place sion shall consider the distinctive character- ‘‘Commission,’’. such phrase appears; istics of the Federal Home Loan Banks when SEC. 380. STUDY OF AFFORDABLE HOUSING PRO- (3) by striking ‘‘liquidation or’’; and evaluating the accounting treatment with GRAM USE FOR LONG-TERM CARE (4) by adding at the end the following new respect to the payment to Resolution Fund- FACILITIES. subsection: ing Corporation, the role of the combined fi- The Comptroller General shall conduct a ‘‘(b) VOLUNTARY MERGERS.—Any two or nancial statements of the twelve Banks, the study of the use of affordable housing pro- more Banks may, with the approval of the accounting classification of redeemable cap- grams of the Federal home loan banks under Director, and the approval of the boards of ital stock, and the accounting treatment re- section 10(j) of the Federal Home Loan Bank directors of the Banks involved, merge. The lated to the joint and several nature of the Act to determine how and the extent to Director shall promulgate regulations estab- obligations of the Banks. which such programs are used to assist long- lishing the conditions and procedures for the SEC. 378. COMMUNITY FINANCIAL INSTITUTION term care facilities for low- and moderate-in- consideration and approval of any such vol- MEMBERS. come individuals, and the effectiveness and untary merger, including the procedures for (a) TOTAL ASSET REQUIREMENT.—Paragraph adequacy of such assistance in meeting the Bank member approval.’’. (10) of section 2 of the Federal Home Loan needs of affected communities. The study

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shall examine the applicability of such use before the expiration of the period under sub- (1) IN GENERAL.—In the case of employees to the affordable housing fund required to be section (a) in connection with functions that occupying positions in the excepted service, established by the Director of the Federal are transferred to the Director of the Federal any appointment authority established pur- Housing Finance Agency pursuant to the Housing Finance Agency shall— suant to law or regulations of the Office of amendment made by section 340 of this title. (A) continue to provide such services, on a Personnel Management for filling such posi- The Comptroller General shall submit a re- reimbursable basis, until the transfer of such tions shall be transferred, subject to para- port to the Director of the Federal Housing functions is complete; and graph (2). Finance Agency and the Congress regarding (B) consult with any such agency to co- (2) DECLINE OF TRANSFER.—The Director of the results of the study not later than the ordinate and facilitate a prompt and reason- the Federal Housing Finance Agency may expiration of the 1-year period beginning on able transition. decline a transfer of authority under para- the date of the enactment of this Act. This (e) SAVINGS PROVISIONS.— graph (1) (and the employees appointed pur- section shall take effect on the date of the (1) EXISTING RIGHTS, DUTIES, AND OBLIGA- suant thereto) to the extent that such au- enactment of this Act. TIONS NOT AFFECTED.—Subsection (a) shall thority relates to positions excepted from SEC. 381. EFFECTIVE DATE. not affect the validity of any right, duty, or the competitive service because of their con- Except as specifically provided otherwise obligation of the United States, the Director fidential, policy-making, policy-deter- in this subtitle, this subtitle shall take ef- of the Office of Federal Housing Enterprise mining, or policy-advocating character. fect on and the amendments made by this Oversight, or any other person, which— (d) REORGANIZATION.—If the Director of the subtitle shall take effect on, and shall apply (A) arises under or pursuant to the title Federal Housing Finance Agency deter- beginning on, the expiration of the 6-month XIII of the Housing and Community Develop- mines, after the end of the 1-year period be- period beginning on the date of the enact- ment Act of 1992, the Federal National Mort- ginning on the date of the abolishment under ment of this Act. gage Association Charter Act, the Federal section 385(a), that a reorganization of the Home Loan Mortgage Corporation Act, or combined work force is required, that reor- Subtitle C—Transfer of Functions, Personnel, any other provision of law applicable with ganization shall be deemed a major reorga- and Property of Office of Federal Housing respect to such Office; and nization for purposes of affording affected Enterprise Oversight, Federal Housing Fi- (B) existed on the day before the abolish- employees retirement under section nance Board, and Department of Housing ment under subsection (a) of this section. 8336(d)(2) or 8414(b)(1)(B) of title 5, United and Urban Development (2) CONTINUATION OF SUITS.—No action or States Code. CHAPTER 1—OFFICE OF FEDERAL other proceeding commenced by or against (e) EMPLOYEE BENEFIT PROGRAMS.—Any HOUSING ENTERPRISE OVERSIGHT the Director of the Office of Federal Housing employee of the Office of Federal Housing Enterprise Oversight accepting employment SEC. 385. ABOLISHMENT OF OFHEO. Enterprise Oversight in connection with with the Director of the Federal Housing Fi- (a) IN GENERAL.—Effective at the end of functions that are transferred to the Direc- nance Agency as a result of a transfer under the 6-month period beginning on the date of tor of the Federal Housing Finance Agency shall abate by reason of the enactment of subsection (a) may retain for 12 months after the enactment of this Act, the Office of Fed- the date such transfer occurs membership in eral Housing Enterprise Oversight of the De- this title, except that the Director of the Federal Housing Finance Agency shall be any employee benefit program of the Federal partment of Housing and Urban Development Housing Finance Agency or the Office of substituted for the Director of the Office of and the positions of the Director and Deputy Federal Housing Enterprise Oversight, as ap- Federal Housing Enterprise Oversight as a Director of such Office are abolished. plicable, including insurance, to which such party to any such action or proceeding. (b) DISPOSITION OF AFFAIRS.—During the 6- employee belongs on the date of the abolish- month period beginning on the date of the SEC. 386. CONTINUATION AND COORDINATION OF ment under section 385(a) if— CERTAIN REGULATIONS. enactment of this Act, the Director of the (1) the employee does not elect to give up Office of Federal Housing Enterprise Over- All regulations, orders, determinations, and resolutions that— the benefit or membership in the program; sight shall, for the purpose of winding up the and affairs of the Office of Federal Housing En- (1) were issued, made, prescribed, or al- lowed to become effective by— (2) the benefit or program is continued by terprise Oversight and in addition to car- the Director of the Federal Housing Finance rying out its other responsibilities under (A) the Office of Federal Housing Enter- prise Oversight; or Agency, law— The difference in the costs between the bene- (B) a court of competent jurisdiction and (1) manage the employees of such Office fits which would have been provided by such that relate to functions transferred by this and provide for the payment of the com- agency and those provided by this section chapter; and pensation and benefits of any such employee shall be paid by the Director of the Federal (2) are in effect on the date of the abolish- which accrue before the effective date of the Housing Finance Agency. If any employee ment under section 385(a) of this title, shall transfer of such employee pursuant to sec- elects to give up membership in a health in- remain in effect according to the terms of tion 387; and surance program or the health insurance (2) may take any other action necessary such regulations, orders, determinations, program is not continued by such Director, for the purpose of winding up the affairs of and resolutions, and shall be enforceable by the employee shall be permitted to select an the Office. or against the Director of the Federal Hous- alternate Federal health insurance program (c) STATUS OF EMPLOYEES BEFORE TRANS- ing Finance Agency until modified, termi- within 30 days of such election or notice, FER.—The amendments made by subtitle A nated, set aside, or superseded in accordance without regard to any other regularly sched- and the abolishment of the Office of Federal with applicable law by such Director, as the uled open season. case may be, any court of competent juris- Housing Enterprise Oversight under sub- SEC. 388. TRANSFER OF PROPERTY AND FACILI- section (a) of this section may not be con- diction, or operation of law. TIES. strued to affect the status of any employee SEC. 387. TRANSFER AND RIGHTS OF EMPLOYEES Upon the abolishment under section 385(a), of such Office as employees of an agency of OF OFHEO. all property of the Office of Federal Housing the United States for purposes of any other (a) TRANSFER.—Each employee of the Of- Enterprise Oversight shall transfer to the Di- provision of law before the effective date of fice of Federal Housing Enterprise Oversight rector of the Federal Housing Finance Agen- the transfer of any such employee pursuant shall be transferred to the Federal Housing cy. to section 387. Finance Agency for employment no later than the date of the abolishment under sec- CHAPTER 2—FEDERAL HOUSING FINANCE (d) USE OF PROPERTY AND SERVICES.— tion 385(a) of this title and such transfer BOARD (1) PROPERTY.—The Director of the Federal shall be deemed a transfer of function for SEC. 391. ABOLISHMENT OF THE FEDERAL HOUS- Housing Finance Agency may use the prop- purposes of section 3503 of title 5, United ING FINANCE BOARD. erty of the Office of Federal Housing Enter- States Code. (a) IN GENERAL.—Effective at the end of prise Oversight to perform functions which (b) GUARANTEED POSITIONS.—Each em- the 6-month period beginning on the date of have been transferred to the Director of the ployee transferred under subsection (a) shall enactment of this Act, the Federal Housing Federal Housing Finance Agency for such be guaranteed a position with the same sta- Finance Board (in this subtitle referred to as time as is reasonable to facilitate the or- tus, tenure, grade, and pay as that held on the ‘‘Board’’) is abolished. derly transfer of functions transferred pursu- the day immediately preceding the transfer. (b) DISPOSITION OF AFFAIRS.—During the 6- ant to any other provision of this title or Each such employee holding a permanent po- month period beginning on the date of enact- any amendment made by this title to any sition shall not be involuntarily separated or ment of this Act, the Board, for the purpose other provision of law. reduced in grade or compensation for 12 of winding up the affairs of the Board and in (2) AGENCY SERVICES.—Any agency, depart- months after the date of transfer, except for addition to carrying out its other respon- ment, or other instrumentality of the United cause or, if the employee is a temporary em- sibilities under law— States, and any successor to any such agen- ployee, separated in accordance with the (1) shall manage the employees of such cy, department, or instrumentality, which terms of the appointment. Board and provide for the payment of the was providing supporting services to the Of- (c) APPOINTMENT AUTHORITY FOR EXCEPTED compensation and benefits of any such em- fice of Federal Housing Enterprise Oversight SERVICE EMPLOYEES.— ployee which accrue before the effective date

VerDate Mar 15 2010 15:08 Nov 08, 2010 Jkt 069102 PO 00000 Frm 00079 Fmt 0688 Sfmt 0634 E:\BR08\H08MY8.003 H08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD May 8, 2008 CONGRESSIONAL RECORD—HOUSE, Vol. 154, Pt. 6 8223 of the transfer of such employee under sec- (2) is in effect on the effective date of the be permitted to select an alternate Federal tion 393; and abolishment under section 391(a). health insurance program within 30 days (2) may take any other action necessary SEC. 393. TRANSFER AND RIGHTS OF EMPLOYEES after such election or notice, without regard for the purpose of winding up the affairs of OF THE FEDERAL HOUSING FI- to any other regularly scheduled open sea- the Board. NANCE BOARD. son. (c) STATUS OF EMPLOYEES BEFORE TRANS- (a) TRANSFER.—Each employee of the SEC. 394. TRANSFER OF PROPERTY AND FACILI- FER.—The amendments made by subtitles A Board shall be transferred to the Federal TIES. and B and the abolishment of the Board Housing Finance Agency for employment not Upon the effective date of the abolishment under subsection (a) may not be construed to later than the effective date of the abolish- under section 391(a), all property of the affect the status of any employee of such ment under section 391(a), and such transfer Board shall transfer to the Director of the Board as employees of an agency of the shall be deemed a transfer of function for Federal Housing Finance Agency. United States for purposes of any other pro- purposes of section 3503 of title 5, United CHAPTER 3—DEPARTMENT OF HOUSING vision of law before the effective date of the States Code. AND URBAN DEVELOPMENT transfer of any such employee under section (b) GUARANTEED POSITIONS.—Each em- SEC. 395. TERMINATION OF ENTERPRISE-RE- 393. ployee transferred under subsection (a) shall LATED FUNCTIONS. (d) USE OF PROPERTY AND SERVICES.— be guaranteed a position with the same sta- (a) TERMINATION DATE.—For purposes of (1) PROPERTY.—The Director of the Federal tus, tenure, grade, and pay as that held on this chapter, the term ‘‘termination date’’ Housing Finance Agency may use the prop- the day immediately preceding the transfer. means the date that occurs 6 months after erty of the Board to perform functions which Each such employee holding a permanent po- the date of the enactment of this Act. have been transferred to the Director of the sition shall not be involuntarily separated or (b) DETERMINATION OF TRANSFERRED FUNC- Federal Housing Finance Agency for such reduced in grade or compensation for 12 TIONS AND EMPLOYEES.— time as is reasonable to facilitate the or- months after the date of transfer, except for (1) IN GENERAL.—Not later than the expira- derly transfer of functions transferred under cause or, if the employee is a temporary em- tion of the 3-month period beginning on the any other provision of this title or any ployee, separated in accordance with the date of the enactment of this Act, the Sec- amendment made by this title to any other terms of the appointment. retary, in consultation with the Director of provision of law. (c) APPOINTMENT AUTHORITY FOR EXCEPTED the Office of Federal Housing Enterprise (2) AGENCY SERVICES.—Any agency, depart- AND SENIOR EXECUTIVE SERVICE EMPLOY- Oversight, shall determine— ment, or other instrumentality of the United EES.— (A) the functions, duties, and activities of States, and any successor to any such agen- (1) IN GENERAL.—In the case of employees the Secretary of Housing and Urban Develop- cy, department, or instrumentality, which occupying positions in the excepted service ment regarding oversight or regulation of was providing supporting services to the or the Senior Executive Service, any ap- the enterprises under or pursuant to the au- Board before the expiration of the period pointment authority established under law thorizing statutes, title XIII of the Housing under subsection (a) in connection with func- or by regulations of the Office of Personnel and Community Development Act of 1992, tions that are transferred to the Director of Management for filling such positions shall and any other provisions of law, as in effect the Federal Housing Finance Agency shall— be transferred, subject to paragraph (2). before the date of the enactment of this Act, (A) continue to provide such services, on a (2) DECLINE OF TRANSFER.—The Director of but not including any such functions, duties, reimbursable basis, until the transfer of such the Federal Housing Finance Agency may and activities of the Director of the Office of functions is complete; and decline a transfer of authority under para- Federal Housing Enterprise Oversight of the (B) consult with any such agency to co- graph (1) to the extent that such authority Department of Housing and Urban Develop- ordinate and facilitate a prompt and reason- relates to positions excepted from the com- ment and such Office; and able transition. petitive service because of their confidential, (B) the employees of the Department of (e) SAVINGS PROVISIONS.— policymaking, policy-determining, or policy- Housing and Urban Development necessary (1) EXISTING RIGHTS, DUTIES, AND OBLIGA- advocating character, and noncareer posi- to perform such functions, duties, and activi- TIONS NOT AFFECTED.—Subsection (a) shall tions in the Senior Executive Service (within ties. not affect the validity of any right, duty, or the meaning of section 3132(a)(7) of title 5, (2) ENTERPRISE-RELATED FUNCTIONS.—For obligation of the United States, a member of United States Code). purposes of this chapter, the term ‘‘enter- the Board, or any other person, which— (d) REORGANIZATION.—If the Director of the prise-related functions of the Department’’ (A) arises under the Federal Home Loan Federal Housing Finance Agency deter- means the functions, duties, and activities of Bank Act or any other provision of law ap- mines, after the end of the 1-year period be- the Department of Housing and Urban Devel- plicable with respect to such Board; and ginning on the effective date of the abolish- opment determined under paragraph (1)(A). (B) existed on the day before the effective ment under section 391(a), that a reorganiza- (3) ENTERPRISE-RELATED EMPLOYEES.—For date of the abolishment under subsection (a). tion of the combined workforce is required, purposes of this chapter, the term ‘‘enter- (2) CONTINUATION OF SUITS.—No action or that reorganization shall be deemed a major prise-related employees of the Department’’ other proceeding commenced by or against reorganization for purposes of affording af- means the employees of the Department of the Board in connection with functions that fected employees retirement under section Housing and Urban Development determined are transferred to the Director of the Federal 8336(d)(2) or 8414(b)(1)(B) of title 5, United under paragraph (1)(B). Housing Finance Agency shall abate by rea- States Code. (c) DISPOSITION OF AFFAIRS.—During the 6- son of the enactment of this title, except (e) EMPLOYEE BENEFIT PROGRAMS.— month period beginning on the date of enact- that the Director of the Federal Housing Fi- (1) IN GENERAL.—Any employee of the ment of this Act, the Secretary of Housing nance Agency shall be substituted for the Board accepting employment with the Fed- and Urban Development (in this subtitle re- Board or any member thereof as a party to eral Housing Finance Agency as a result of a ferred to as the ‘‘Secretary’’), for the purpose any such action or proceeding. transfer under subsection (a) may retain for of winding up the affairs of the Secretary re- SEC. 392. CONTINUATION AND COORDINATION OF 12 months after the date on which such garding the enterprise-related functions of CERTAIN REGULATIONS. transfer occurs membership in any employee the Department of Housing and Urban Devel- (a) IN GENERAL.—All regulations, orders, benefit program of the Federal Housing Fi- opment (in this subtitle referred to as the determinations, and resolutions described nance Agency or the Board, as applicable, in- ‘‘Department’’) and in addition to carrying under subsection (b) shall remain in effect cluding insurance, to which such employee out the Secretary’s other responsibilities according to the terms of such regulations, belongs on the effective date of the abolish- under law regarding such functions— orders, determinations, and resolutions, and ment under section 391(a) if— (1) shall manage the enterprise-related em- shall be enforceable by or against the Direc- (A) the employee does not elect to give up ployees of the Department and provide for tor of the Federal Housing Finance Agency the benefit or membership in the program; the payment of the compensation and bene- until modified, terminated, set aside, or su- and fits of any such employee which accrue be- perseded in accordance with applicable law (B) the benefit or program is continued by fore the effective date of the transfer of any by such Director, any court of competent ju- the Director of the Federal Housing Finance such employee under section 397; and risdiction, or operation of law. Agency. (2) may take any other action necessary (b) APPLICABILITY.—A regulation, order, (2) COST DIFFERENTIAL.—The difference in for the purpose of winding up the enterprise- determination, or resolution is described the costs between the benefits which would related functions of the Department. under this subsection if it— have been provided by the Board and those (d) STATUS OF EMPLOYEES BEFORE TRANS- (1) was issued, made, prescribed, or allowed provided by this section shall be paid by the FER.—The amendments made by subtitles A to become effective by— Director of the Federal Housing Finance and B and the termination of the enterprise- (A) the Board; or Agency. If any employee elects to give up related functions of the Department under (B) a court of competent jurisdiction and membership in a health insurance program subsection (b) may not be construed to affect relates to functions transferred by this chap- or the health insurance program is not con- the status of any employee of the Depart- ter; and tinued by such Director, the employee shall ment as employees of an agency of the

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United States for purposes of any other pro- (1) IN GENERAL.—Except as provided in (A) the employee does not elect to give up vision of law before the effective date of the paragraph (2), each enterprise-related em- the benefit or membership in the program; transfer of any such employee under section ployee of the Department shall be trans- and 397. ferred to the Federal Housing Finance Agen- (B) the benefit or program is continued by (e) USE OF PROPERTY AND SERVICES.— cy for employment not later than the termi- the Director of the Federal Housing Finance (1) PROPERTY.—The Director of the Federal nation date under section 395(a) and such Agency. Housing Finance Agency may use the prop- transfer shall be deemed a transfer of func- (2) COST DIFFERENTIAL.—The difference in erty of the Secretary to perform functions tion for purposes of section 3503 of title 5, the costs between the benefits which would which have been transferred to the Director United States Code. have been provided by the Department and of the Federal Housing Finance Agency for (2) AUTHORITY TO DECLINE.—An enterprise- those provided by this section shall be paid such time as is reasonable to facilitate the related employee of the Department may, in by the Director of the Federal Housing Fi- orderly transfer of functions transferred the discretion of the employee, decline nance Agency. If any employee elects to give under any other provision of this title or any transfer under paragraph (1) to a position in up membership in a health insurance pro- amendment made by this title to any other the Federal Housing Finance Agency and gram or the health insurance program is not provision of law. shall be guaranteed a position in the Depart- continued by such Director, the employee (2) AGENCY SERVICES.—Any agency, depart- ment with the same status, tenure, grade, shall be permitted to select an alternate ment, or other instrumentality of the United and pay as that held on the day immediately Federal health insurance program within 30 States, and any successor to any such agen- preceding the date that such declination was days after such election or notice, without cy, department, or instrumentality, which made. Each such employee holding a perma- regard to any other regularly scheduled open was providing supporting services to the Sec- nent position shall not be involuntarily sepa- season. retary regarding enterprise-related functions rated or reduced in grade or compensation SEC. 398. TRANSFER OF APPROPRIATIONS, PROP- of the Department before the termination for 12 months after the date that the transfer ERTY, AND FACILITIES. date under subsection (a) in connection with would otherwise have occurred, except for Upon the termination date under section such functions that are transferred to the cause or, if the employee is a temporary em- 395(a), all assets, liabilities, contracts, prop- Director of the Federal Housing Finance ployee, separated in accordance with the erty, records, and unexpended balances of ap- Agency shall— terms of the appointment. propriations, authorizations, allocations, (A) continue to provide such services, on a (b) GUARANTEED POSITIONS.—Each enter- and other funds employed, held, used, arising reimbursable basis, until the transfer of such prise-related employee of the Department from, available to, or to be made available to functions is complete; and transferred under subsection (a) shall be the Department in connection with enter- (B) consult with any such agency to co- guaranteed a position with the same status, prise-related functions of the Department ordinate and facilitate a prompt and reason- tenure, grade, and pay as that held on the shall transfer to the Director of the Federal able transition. day immediately preceding the transfer. Housing Finance Agency. Unexpended funds (f) SAVINGS PROVISIONS.— Each such employee holding a permanent po- transferred by this section shall be used only (1) EXISTING RIGHTS, DUTIES, AND OBLIGA- sition shall not be involuntarily separated or for the purposes for which the funds were TIONS NOT AFFECTED.—Subsection (a) shall reduced in grade or compensation for 12 originally authorized and appropriated. not affect the validity of any right, duty, or months after the date of transfer, except for TITLE IV—EMERGENCY MORTGAGE LOAN obligation of the United States, the Sec- cause or, if the employee is a temporary em- MODIFICATION retary, or any other person, which— ployee, separated in accordance with the SEC. 401. SHORT TITLE. (A) arises under the authorizing statutes, terms of the appointment. This title may be cited as the ‘‘Emergency title XIII of the Housing and Community De- (c) APPOINTMENT AUTHORITY FOR EXCEPTED Mortgage Loan Modification Act of 2008’’. velopment Act of 1992, or any other provision AND SENIOR EXECUTIVE SERVICE EMPLOY- SEC. 402. SAFE HARBOR FOR QUALIFIED LOAN of law applicable with respect to the Sec- EES.— MODIFICATIONS OR WORKOUT retary, in connection with the enterprise-re- (1) IN GENERAL.—In the case of employees PLANS FOR CERTAIN RESIDENTIAL lated functions of the Department; and occupying positions in the excepted service MORTGAGE LOANS. (B) existed on the day before the termi- or the Senior Executive Service, any ap- (a) STANDARD FOR LOAN MODIFICATIONS OR nation date under subsection (a). pointment authority established under law WORKOUT PLANS.—Absent contractual provi- (2) CONTINUATION OF SUITS.—No action or or by regulations of the Office of Personnel sions to the contrary— other proceeding commenced by or against Management for filling such positions shall (1) the duty to maximize, or to not ad- the Secretary in connection with the enter- be transferred, subject to paragraph (2). versely affect, the recovery of total proceeds prise-related functions of the Department from pooled residential mortgage loans is (2) DECLINE OF TRANSFER.—The Director of shall abate by reason of the enactment of the Federal Housing Finance Agency may owed by a servicer of such pooled loans to this title, except that the Director of the decline a transfer of authority under para- the securitization vehicle for the benefit of Federal Housing Finance Agency shall be graph (1) (and the employees appointed pur- all investors and holders of beneficial inter- substituted for the Secretary or any member suant thereto) to the extent that such au- ests in the pooled loans, in the aggregate, thereof as a party to any such action or pro- thority relates to positions excepted from and not to any individual party or group of ceeding. the competitive service because of their con- parties; and SEC. 396. CONTINUATION AND COORDINATION OF fidential, policymaking, policy-determining, (2) a servicer of pooled residential mort- CERTAIN REGULATIONS. or policy-advocating character, and non- gage loans shall be deemed to be acting on (a) IN GENERAL.—All regulations, orders, career positions in the Senior Executive behalf of the securitization vehicle in the and determinations described in subsection Service (within the meaning of section best interest of all investors and holders of (b) shall remain in effect according to the 3132(a)(7) of title 5, United States Code). beneficial interests in the pooled loans, in terms of such regulations, orders, determina- the aggregate, if for a loan that is in pay- tions, and resolutions, and shall be enforce- (d) REORGANIZATION.—If the Director of the ment default under the loan agreement or able by or against the Director of the Fed- Federal Housing Finance Agency deter- for which payment default is imminent or eral Housing Finance Agency until modified, mines, after the end of the 1-year period be- reasonably foreseeable, the loan servicer terminated, set aside, or superseded in ac- ginning on the termination date under sec- makes or causes to be made reasonable and cordance with applicable law by such Direc- tion 395(a), that a reorganization of the com- documented efforts to implement a modifica- tor, any court of competent jurisdiction, or bined workforce is required, that reorganiza- tion or workout plan or, if such efforts are operation of law. tion shall be deemed a major reorganization unsuccessful or such plan would be infeasi- (b) APPLICABILITY.—A regulation, order, or for purposes of affording affected employees ble, engages or causes to engage in other loss determination is described under this sub- retirement under section 8336(d)(2) or mitigation, including accepting a short pay- section if it— 8414(b)(1)(B) of title 5, United States Code. ment or partial discharge of principal, or (1) was issued, made, prescribed, or allowed (e) EMPLOYEE BENEFIT PROGRAMS.— agreeing to a short sale of the property, to to become effective by— (1) IN GENERAL.—Any enterprise-related the extent that the servicer reasonably be- (A) the Secretary; or employee of the Department accepting em- lieves the modification or workout plan or (B) a court of competent jurisdiction and ployment with the Federal Housing Finance other mitigation actions will maximize the that relate to the enterprise-related func- Agency as a result of a transfer under sub- net present value to be realized on the loan tions of the Department; and section (a) may retain for 12 months after over that which would be realized through (2) is in effect on the termination date the date on which such transfer occurs mem- foreclosure. under section 395(a). bership in any employee benefit program of (b) SAFE HARBOR.—Absent contractual pro- SEC. 397. TRANSFER AND RIGHTS OF EMPLOYEES the Federal Housing Finance Agency or the visions to the contrary, a servicer of a resi- OF DEPARTMENT OF HOUSING AND Department, as applicable, including insur- dential mortgage loan that acts or causes to URBAN DEVELOPMENT. ance, to which such employee belongs on the act in a manner consistent with the duty set (a) TRANSFER.— termination date under section 395(a) if— forth in subsection (a), shall not be liable for

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entering into a qualified loan modification (b) INVESTMENTS BY FEDERAL SAVINGS AS- Secretary of Housing and Urban Develop- or workout plan, to— SOCIATIONS AUTHORIZED TO PROMOTE THE ment may, at the request of the owner of the (1) any person, based on that person’s own- PUBLIC WELFARE.— multifamily housing project to which Sec- ership of a residential mortgage loan or any (1) IN GENERAL.—Section 5(c)(3) of the tion 8 Project Number NY 913 VO 0018 and interest in a pool of residential mortgage Home Owners’ Loan Act (12 U.S.C. 1464(c)) is RAP Contract Number 012035NIRAP are sub- loans or in securities that distribute pay- amended by adding at the end the following ject, convert such contracts to a contract for ments out of the principal, interest and new subparagraph: project-based rental assistance under section other payments in loans on the pool; ‘‘(D) DIRECT INVESTMENTS TO PROMOTE THE 8 of the United States Housing Act of 1937 (42 (2) any person who is obligated to make PUBLIC WELFARE.— U.S.C. 1437f). payments pursuant to a derivatives instru- ‘‘(i) IN GENERAL.—A Federal savings asso- (b) INITIAL RENEWAL.— ment determined in reference to any interest ciation may make investments, directly or (1) ELIGIBILITY.—At the request of the referred to in paragraph (1); or indirectly, each of which is designed pri- owner made no later than 90 days prior to a (3) any person that insures any loan or any marily to promote the public welfare, includ- conversion, the Secretary may, to the extent interest referred to in paragraph (1) under ing the welfare of low- and moderate-income sufficient amounts are made available in ap- any law or regulation of the United States or communities or families through the provi- propriation Acts and notwithstanding any any law or regulation of any State or polit- sion of housing, services, and jobs. other law, treat the contemplated resulting ical subdivision of any State. ‘‘(ii) DIRECT INVESTMENTS OR ACQUISITION contract as if such contract were eligible for (c) RULE OF CONSTRUCTION.—No provision OF INTEREST IN OTHER COMPANIES.—Invest- initial renewal under section 524(a) of the of this section shall be construed as limiting ments under clause (i) may be made directly the ability of a servicer to enter into loan Multifamily Assisted Housing Reform and or by purchasing interests in an entity pri- Affordability Act of 1997 (42 U.S.C. 1437f modifications or workout plans other than marily engaged in making such investments. qualified loan modification or workout note). ‘‘(iii) PROHIBITION ON UNLIMITED LIABIL- plans. (2) REQUEST.—A request by the owner pur- ITY.—No investment may be made under this (d) DEFINITIONS.—For purposes of this sec- suant to paragraph (1) shall be upon such tion, the following definitions shall apply: subparagraph which would subject a Federal terms and conditions as the Secretary may savings association to unlimited liability to (1) QUALIFIED LOAN MODIFICATION OR WORK- require. any person. OUT PLAN.—The term ‘‘qualified loan modi- (c) RESULTING CONTRACT.—The resulting fication or workout plan’’ means a modifica- ‘‘(iv) SINGLE INVESTMENT LIMITATION TO BE contract shall— tion or plan that— ESTABLISHED BY DIRECTOR.—Subject to (1) be subject to section 524(a) of MAHRA (A) is scheduled to remain in place until clauses (v) and (vi), the Director shall estab- (42 U.S.C. 1437f note); the borrower sells or refinances the property, lish, by order or regulation, limits on— (2) be considered for all purposes a contract or for at least 5 years from the date of adop- ‘‘(I) the amount any savings association that has been renewed under section 524(a) of tion of the plan, whichever is sooner; may invest in any 1 project; and MAHRA (42 U.S.C. 1437f note) for a term not (B) does not provide for a repayment sched- ‘‘(II) the aggregate amount of investment to exceed 20 years; ule that results in an increase in the out- of any savings association under this sub- (3) be subsequently renewable at the re- standing principal balance of the loan, in- paragraph. quest of the owner, under any renewal option cluding by deferred or unpaid interest, fees, ‘‘(v) FLEXIBLE AGGREGATE INVESTMENT LIMI- for which the project is eligible under or other charges; and TATION.—The aggregate amount of invest- MAHRA (42 U.S.C. 1437f note); (C) does not require the borrower to pay ments of any savings association under this (4) contain provisions limiting distribu- additional points and fees. subparagraph may not exceed an amount tions, as the Secretary determines appro- (2) RESIDENTIAL MORTGAGE LOAN DEFINED.— equal to the sum of 5 percent of the savings priate, not to exceed 10 percent of the initial The term ‘‘residential mortgage loan’’ means association’s capital stock actually paid in investment of the owner; a loan that is secured by a lien on an owner- and unimpaired and 5 percent of the savings (5) be subject to the availability of suffi- occupied residential dwelling. association’s unimpaired surplus, unless— cient amounts in appropriation Acts; and (3) SECURITIZATION VEHICLE.—The term ‘‘(I) the Director determines that the sav- (6) be subject to such other terms and con- ‘‘securitization vehicle’’ means a trust, cor- ings association is adequately capitalized; ditions as the Secretary considers appro- poration, partnership, limited liability enti- and priate. ty, special purpose entity, or other structure ‘‘(II) the Director determines, by order, (d) INCOME TARGETING.—The owner shall be that— that the aggregate amount of investments in deemed to be in compliance with all income- (A) is the issuer, or is created by the a higher amount than the limit under this targeting requirements under the United issuer, of mortgage pass-through certifi- clause will pose no significant risk to the af- States Housing Act of 1937 by serving low-in- cates, participation certificates, mortgage- fected deposit insurance fund. come families, as such term is defined in the backed securities, or other similar securities ‘‘(vi) MAXIMUM AGGREGATE INVESTMENT section 3(b)(2) of such Act (42 U.S.C. backed by a pool of assets that includes resi- LIMITATION.—Notwithstanding clause (v), the 1437a(b)(2)). dential mortgage loans; and aggregate amount of investments of any sav- (B) holds such loans. ings association under this subparagraph (e) TENANT ELIGIBILITY.—Notwithstanding (e) EFFECTIVE PERIOD.—This section shall may not exceed an amount equal to the sum any other provision of law, each family re- apply only with respect to qualified loan of 15 percent of the savings association’s cap- siding in an assisted dwelling unit on the modification or workout plans initiated ital stock actually paid in and unimpaired date of the conversion under this section, prior to January 1, 2011. and 15 percent of the savings association’s subject to the resulting contract under sub- TITLE V—OTHER HOUSING PROVISIONS unimpaired surplus. section (a), shall be considered to meet the applicable requirements for income eligi- SEC. 501. DEPOSITORY INSTITUTION COMMUNITY ‘‘(vii) INVESTMENTS NOT SUBJECT TO OTHER DEVELOPMENT INVESTMENTS EN- LIMITATION ON QUALITY OF INVESTMENTS.—No bility and occupancy. HANCEMENT . obligation a Federal savings association ac- (f) DEFINITIONS.—As used in this section— (a) TECHNICAL CORRECTIONS.— quires or retains under this subparagraph (1) the term ‘‘assisted dwelling unit’’ (1) NATIONAL BANKS.—The first sentence of shall be taken into account for purposes of means the dwelling units that, on the date of the paragraph designated as the ‘‘Eleventh’’ the limitation contained in section 28(d) of the conversion under this section, were sub- of section 5136 of the Revised Statutes of the the Federal Deposit Insurance Act on the ac- ject to Section 8 Project Number NY 913 VO United States (12 U.S.C. 24) (as amended by quisition and retention of any corporate debt 0018 or RAP Contract Number 012035NIRAP; section 305(a) of the Financial Services Reg- security not of investment grade. (2) the term ‘‘conversion’’ means the ac- ulatory Relief Act of 2006) is amended by ‘‘(viii) APPLICABILITY OF STANDARDS TO tion under which Section 8 Project Number striking ‘‘promotes the public welfare by EACH INVESTMENT.—The standards and limi- NY 913 VO 0018 and RAP Contract Number benefitting primarily’’ and inserting ‘‘is de- tations of this subparagraph shall apply to 012035NIRAP become a contract for project- signed primarily to promote the public wel- each investment under this subparagraph based rental assistance under section 8 of the fare, including the welfare of’’. made by a savings association directly and United States Housing Act of 1937 (42 U.S.C. (2) STATE MEMBER BANKS.—The first sen- by its subsidiaries.’’. 1437f) pursuant to subsection (a); tence of the 23rd undesignated paragraph of (2) TECHNICAL AND CONFORMING AMEND- (3) the term ‘‘MAHRA’’ means the Multi- section 9 of the Federal Reserve Act (12 MENTS.—Section 5(c)(3)(A) of the Home Own- family Assisted Housing Reform and Afford- U.S.C. 338a) (as amended by section 305(b) of ers’ Loan Act (12 U.S.C. 1464(c)(3)(A)) is ability Act of 1997 (42 U.S.C. 1437f note); the Financial Services Regulatory Relief Act amended to read as follows: (4) the term ‘‘owner’’ means Starrett City of 2006) is amended by striking ‘‘promotes ‘‘(A) øRepealed¿’’. Associates or any successor owner of the the public welfare by benefitting primarily’’ SEC. 502. PRESERVATION OF CERTAIN AFFORD- multifamily housing project to which Sec- and inserting ‘‘is designed primarily to pro- ABLE HOUSING DWELLING UNITS. tion 8 Project Number NY 913 VO 0018 and mote the public welfare, including the wel- (a) CONVERSION OF HUD CONTRACTS.—Not- RAP Contract Number 012035NIRAP are sub- fare of’’. withstanding any other provision of law, the ject;

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(5) the term ‘‘resulting contract’’ means (c) RETENTION OF SAME NUMBER OF UNITS ing, the appropriate percentage prescribed by the new contract after a conversion of Sec- AND AMOUNT OF ASSISTANCE.—Any transfer the Secretary for the earlier of— tion 8 Project Number NY 913 VO 0018 and pursuant to subsection (a) shall result in— ‘‘(A) the month in which such building is RAP Contract Number 012035NIRAP to a con- (1) a total number of dwelling units (in- placed in service, or tract for project-based rental assistance cluding units retained by the owners and ‘‘(B) at the election of the taxpayer— under section 8 of the United States Housing units transferred) covered by assistance de- ‘‘(i) the month in which the taxpayer and Act of 1937 (42 U.S.C. 1437f) pursuant to sub- scribed in subsection (b)(1) after the transfer the housing credit agency enter into an section (a); and remaining the same as such number assisted agreement with respect to such building (6) the term ‘‘Secretary’’ means the Sec- before the transfer, with such increases or (which is binding on such agency, the tax- retary of Housing and Urban Development. decreases in unit sizes as may be contained payer, and all successors in interest) as to SEC. 503. ELIGIBILITY OF CERTAIN PROJECTS in a plan approved by a local planning or de- the housing credit dollar amount to be allo- FOR ENHANCED VOUCHER ASSIST- velopment commission or department; and cated to such building, or ANCE. (2) no reduction in the total amount of the ‘‘(ii) in the case of any building to which Notwithstanding any other provision of housing assistance payments under con- subsection (h)(4)(B) applies, the month in law— tracts described in subsection (b)(1). which the tax-exempt obligations are issued. (1) the property known as The Heritage SEC. 505. PROTECTION AGAINST DISCRIMINA- A month may be elected under clause (ii) Apartments (FHA No. 023-44804), in Malden, TORY TREATMENT. only if the election is made not later than Massachusetts, shall be considered eligible Section 525 of title 11, the United States the 5th day after the close of such month. low-income housing for purposes of the eligi- Code, is amended by adding at the end the Such an election, once made, shall be irrev- following: bility of residents of the property for en- ocable. ‘‘(d) A governmental unit that operates a hanced voucher assistance under section 8(t) ‘‘(2) METHOD OF PRESCRIBING PERCENT- mortgage loan program, including a loan of the United States Housing Act of 1937 (42 AGES.— guarantee or subsidy program, may not deny U.S.C. 1437f(t)), pursuant to paragraph (2)(A) ‘‘(A) IN GENERAL.—For purposes of para- the benefits of such program to a disabled of section 223(f) of the Low-Income Housing graph (1), the percentages prescribed by the veteran (as defined in section 3741(1) of title Preservation and Resident Homeownership Secretary for any month shall be— 38) because he or she is or has been a debtor Act of 1990 (12 U.S.C. 4113(f)(2)(A)); ‘‘(i) in the case of any building which is not under this title, has been insolvent before (2) such residents shall receive enhanced federally subsidized for the taxable year, the the commencement of a case under this title rental housing vouchers upon the prepay- greater of— or during the pendency of the case but before ment of the mortgage loan for the property ‘‘(I) the average percentage determined being granted or denied a discharge, or has under section 236 of the National Housing under subclause (II) for months in the pre- not paid a debt that is dischargeable in the Act (12 U.S.C. 1715z–1); and ceding calendar year, or case under this title.’’. (3) the Secretary shall approve such pre- ‘‘(II) the percentage which will yield over a In the matter proposed to be inserted by payment and subsequent transfer of the 10-year period amounts of credit under sub- the amendment of the Senate to the text of property without any further condition, ex- section (a) which have a present value equal the bill, strike titles VII, IX, and XI. cept that the property shall be restricted for to 70 percent of the qualified basis of such occupancy, until the original maturity date The text of House amendment No. 2 building, and of the prepaid mortgage loan, only by fami- to the Senate amendment is as follows: ‘‘(ii) in the case of any other building, the lies with incomes not exceeding 80 percent of In the matter proposed to be inserted by percentage which will yield over a 10-year the adjusted median income for the area in the Senate amendment to H.R. 3221, strike period amounts of credit under subsection (a) which the property is located, as published titles VI (relating to tax-related provisions), which have a present value equal to 30 per- by the Secretary. VIII (relating to REIT investment diver- cent of the qualified basis of such building. Amounts for the enhanced vouchers pursu- sification and empowerment), and X (relat- ‘‘(B) METHOD OF DISCOUNTING.—The present ant to this section shall be provided under ing to clean energy tax stimulus) and add at value under subparagraph (A) shall be deter- amounts appropriated for tenant-based rent- the end the following new title (and conform mined— al assistance otherwise authorized under sec- the table of contents accordingly): ‘‘(i) as of the last day of the 1st year of the tion 8(t) of the United States Housing Act of TITLE VII—REVENUE AND OTHER 10-year period referred to in subparagraph 1937. PROVISIONS (A), ‘‘(ii) by using a discount rate equal to 72 SEC. 504. TRANSFER OF CERTAIN RENTAL AS- SEC. 700. AMENDMENT OF 1986 CODE. SISTANCE CONTRACTS. percent of the average of the annual Federal Except as otherwise expressly provided, (a) TRANSFER.—Subject to subsection (c) mid-term rate and the annual Federal long- whenever in this title an amendment or re- term rate applicable under section 1274(d)(1) and notwithstanding any other provision of peal is expressed in terms of an amendment law, the Secretary of Housing and Urban De- to the month applicable under subparagraph to, or repeal of, a section or other provision, (A) and compounded annually, and velopment shall, at the request of the owner, the reference shall be considered to be made transfer or authorize the transfer, of the con- ‘‘(iii) by assuming that the credit allow- to a section or other provision of the Inter- able under this section for any year is re- tracts, restrictions, and debt described in nal Revenue Code of 1986. subsection (b)— ceived on the last day of such year. Subtitle A—Housing Tax Incentives (1) on the housing that is owned or man- ‘‘(3) CROSS REFERENCES.— aged by Community Properties of Ohio Man- PART 1—MULTI-FAMILY HOUSING ‘‘(A) For treatment of certain rehabilita- agement Services LLC or an affiliate of Ohio Subpart A—Low-Income Housing Tax Credit tion expenditures as separate buildings, see Capital Corporation for Housing and located subsection (e). SEC. 701. TEMPORARY INCREASE IN VOLUME CAP ‘‘(B) For determination of applicable per- in Franklin County, Ohio, to other prop- FOR LOW-INCOME HOUSING TAX erties located in Franklin County, Ohio; and CREDIT. centage for increases in qualified basis after (2) on the housing that is owned or man- Paragraph (3) of section 42(h) is amended the 1st year of the credit period, see sub- aged by The Model Group, Inc., and located by adding at the end the following new sub- section (f)(3). in Hamilton County, Ohio, to other prop- paragraph: ‘‘(C) For authority of housing credit agen- erties located in Hamilton County, Ohio. ‘‘(I) INCREASE IN STATE HOUSING CREDIT cy to limit applicable percentage and quali- fied basis which may be taken into account (b) CONTRACTS, RESTRICTIONS, AND DEBT CEILING FOR 2008 AND 2009.—In the case of cal- under this section with respect to any build- COVERED.—The contracts, restrictions, and endar years 2008 and 2009, the dollar amount ing, see subsection (h)(7).’’. debt described in this subsection are as fol- in effect under subparagraph (C)(ii)(I) for (2) CONFORMING AMENDMENTS.— lows: such calendar year (after any increase under (A) Subparagraph (B) of section 42(e)(3) is (1) All or a portion of a project-based rent- subparagraph (H)) shall be increased by amended by striking ‘‘subsection al assistance housing assistance payments $0.20.’’. (b)(2)(B)(ii)’’ and inserting ‘‘subsection contract under section 8 of the United States SEC. 702. DETERMINATION OF CREDIT RATE. (b)(2)(A)(ii)’’. Housing Act of 1937 (42 U.S.C. 1437f). (a) ELIMINATION OF DISTINCTION BETWEEN (B) Subparagraph (A) of section 42(i)(2) is (2) Existing Federal use restrictions, in- NEW AND EXISTING BUILDINGS; MINIMUM amended by striking ‘‘new building’’ and in- cluding without limitation use agreements, CREDIT RATE FOR NON-FEDERALLY SUBSIDIZED serting ‘‘building’’. regulatory agreements, and accommodation BUILDINGS.— agreements. (1) IN GENERAL.—Subsection (b) section 42 (b) MODIFICATIONS TO DEFINITION OF FEDER- (3) Any subordinate debt held by the Sec- is amended to read as follows: ALLY SUBSIDIZED BUILDING.— retary or assigned and any mortgages secur- ‘‘(b) APPLICABLE PERCENTAGE.—For pur- (1) IN GENERAL.—Subparagraph (A) of sec- ing such debt, all related loan and security poses of this section— tion 42(i)(2) is amended by striking ‘‘, or any documentation and obligations, and reserve ‘‘(1) IN GENERAL.—The term ‘applicable per- below market Federal loan,’’. and escrow balances. centage’ means, with respect to any build- (2) CONFORMING AMENDMENTS.—

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(A) Subparagraph (B) of section 42(i)(2) is (c) INCREASE IN ALLOWABLE COMMUNITY ‘‘(B) STATUTE OF LIMITATIONS.—If a build- amended— SERVICE FACILITY SPACE FOR SMALL ing (or an interest therein) is disposed of (i) by striking ‘‘BALANCE OF LOAN OR’’ in PROJECTS.—Clause (ii) of section 42(d)(4)(C) during any taxable year and there is any re- the heading thereof, (relating to limitation) is amended by strik- duction in the qualified basis of such build- (ii) by striking ‘‘loan or’’ in the matter ing ‘‘10 percent of the eligible basis of the ing which results in an increase in tax under preceding clause (i), and qualified low-income housing project of this subsection for such taxable or any sub- (iii) by striking ‘‘subsection (d)—’’ and all which it is a part. For purposes of’’ and in- sequent taxable year, then— that follows and inserting ‘‘subsection (d) serting ‘‘the sum of— ‘‘(i) the statutory period for the assess- the proceeds of such obligation.’’. ‘‘(I) 15 percent of so much of the eligible ment of any deficiency with respect to such (B) Subparagraph (C) of section 42(i)(2) is basis of the qualified low-income housing increase in tax shall not expire before the ex- amended— project of which it is a part as does not ex- piration of 3 years from the date the Sec- (i) by striking ‘‘or below market Federal ceed $5,000,000, plus retary is notified by the taxpayer (in such loan’’ in the matter preceding clause (i), ‘‘(II) 10 percent of so much of the eligible manner as the Secretary may prescribe) of (ii) in clause (i)— basis of such project as is not taken into ac- such reduction in qualified basis, and (I) by striking ‘‘or loan (when issued or count under subclause (I). ‘‘(ii) such deficiency may be assessed be- made)’’ and inserting ‘‘(when issued)’’, and For purposes of’’. fore the expiration of such 3-year period not- (II) by striking ‘‘the proceeds of such obli- (d) CLARIFICATION OF TREATMENT OF FED- withstanding the provisions of any other law gation or loan’’ and inserting ‘‘the proceeds ERAL GRANTS.—Subparagraph (A) of section or rule of law which would otherwise prevent of such obligation’’, and 42(d)(5) is amended to read as follows: such assessment.’’. (iii) by striking ‘‘, and such loan is repaid,’’ ‘‘(A) FEDERAL GRANTS NOT TAKEN INTO AC- (d) ENERGY EFFICIENCY AND HISTORIC NA- in clause (ii). COUNT IN DETERMINING ELIGIBLE BASIS.—The TURE TAKEN INTO ACCOUNT IN MAKING ALLO- (C) Paragraph (2) of section 42(i) is amend- eligible basis of a building shall not include CATIONS.—Subparagraph (C) of section ed by striking subparagraphs (D) and (E). any costs financed with the proceeds of a 42(m)(1) (relating to plans for allocation of (c) EFFECTIVE DATE.—The amendments Federally funded grant.’’. credit among projects) is amended by strik- made by this subsection shall apply to build- (e) SIMPLIFICATION OF RELATED PARTY ing ‘‘and’’ at the end of clause (vii), by strik- ings placed in service after the date of the RULES.—Clause (iii) of section 42(d)(2)(D), be- ing the period at the end of clause (viii) and enactment of this Act. fore redesignation under subsection (f)(2), is inserting a comma, and by adding at the end the following new clauses: SEC. 703. MODIFICATIONS TO DEFINITION OF ELI- amended— GIBLE BASIS. (1) by striking all that precedes subclause ‘‘(ix) the energy efficiency of the project, (a) INCREASE IN CREDIT FOR CERTAIN STATE (II), and DESIGNATED BUILDINGS.—Subparagraph (C) of (2) by redesignating subclause (II) as clause ‘‘(x) the historic nature of the project.’’. section 42(d)(5) (relating to increase in credit (iii) and moving such clause two ems to the (e) CONTINUED ELIGIBILITY FOR STUDENTS WHO RECEIVED FOSTER CARE ASSISTANCE.— for buildings in high cost areas), before re- left, and Clause (i) of section 42(i)(3)(D) is amended by designation under subsection (f), is amended (3) by striking the last sentence thereof. striking ‘‘or’’ at the end of subclause (I), by by adding at the end the following new (f) REPEAL OF DEADWOOD.— redesignating subclause (II) as subclause clause: (1) Clause (ii) of section 42(d)(2)(B) is (III), and by inserting after subclause (I) the UILDINGS DESIGNATED BY STATE HOUS- amended by striking ‘‘the later of—’’ and all ‘‘(v) B following new subclause: ING CREDIT AGENCY.—Any building which is that follows and inserting ‘‘the date the ‘‘(II) a student who was previously under designated by the State housing credit agen- building was last placed in service,’’. the care and placement responsibility of the cy as requiring the increase in credit under (2) Subparagraph (D) of section 42(d)(2) is State agency responsible for administering a this subparagraph in order for such building amended by striking clause (i) and by redes- plan under part B or part E of title IV of the to be financially feasible as part of a quali- ignating clauses (ii) and (iii) as clauses (i) Social Security Act, or’’. and (ii), respectively. fied low-income housing project shall be (f) TREATMENT OF RURAL PROJECTS.—Sec- treated for purposes of this subparagraph as (3) Paragraph (5) of section 42(d) is amend- tion 42(i) (relating to definitions and special located in a difficult development area which ed by striking subparagraph (B) and by re- rules) is amended by adding at the end the is designated for purposes of this subpara- designating subparagraph (C) as subpara- following new paragraph: graph. The preceding sentence shall not graph (B). ‘‘(8) TREATMENT OF RURAL PROJECTS.—For (g) EFFECTIVE DATE.—The amendments apply to any building if paragraph (1) of sub- purposes of this section, in the case of any made by this subsection shall apply to build- section (h) does not apply to any portion of project for residential rental property lo- ings placed in service after the date of the the eligible basis of such building by reason cated in a rural area (as defined in section enactment of this Act. of paragraph (4) of such subsection.’’. 520 of the Housing Act of 1949), any income (b) MODIFICATION TO REHABILITATION RE- SEC. 704. OTHER SIMPLIFICATION AND REFORM limitation measured by reference to area QUIREMENTS.— OF LOW-INCOME HOUSING TAX IN- CENTIVES. median gross income shall be measured by (1) IN GENERAL.—Clause (ii) of section reference to the greater of area median gross 42(e)(3)(A) is amended— (a) REPEAL PROHIBITION ON MODERATE RE- HABILITATION ASSISTANCE.—Paragraph (2) of income or national non-metropolitan median (A) by striking ‘‘10 percent’’ in subclause income. The preceding sentence shall not (I) and inserting ‘‘20 percent’’, and section 42(c) (defining qualified low-income building) is amended by striking the flush apply with respect to any building if para- (B) by striking ‘‘$3,000’’ in subclause (II) graph (1) of section 42(h) does not apply by and inserting ‘‘$6,000’’. sentence at the end. (b) MODIFICATION OF TIME LIMIT FOR INCUR- reason of paragraph (4) thereof to any por- (2) INFLATION ADJUSTMENT.—Paragraph (3) RING 10 PERCENT OF PROJECT’S COST.—Clause tion of the credit determined under this sec- of section 42(e) is amended by adding at the (ii) of section 42(h)(1)(E) is amended by strik- tion with respect to such building.’’. end the following new subparagraph: ing ‘‘(as of the later of the date which is 6 (g) EFFECTIVE DATE.— ‘‘(D) INFLATION ADJUSTMENT.—In the case months after the date that the allocation (1) IN GENERAL.—Except as otherwise pro- of any expenditures which are treated under was made or the close of the calendar year in vided in this subsection, the amendments paragraph (4) as placed in service during any which the allocation is made)’’ and inserting made by this section shall apply to buildings calendar year after 2009, the $6,000 amount in ‘‘(as of the date which is 1 year after the date placed in service after the date of the enact- subparagraph (A)(ii)(II) shall be increased by that the allocation was made)’’. ment of this Act. an amount equal to— (c) REPEAL OF BONDING REQUIREMENT ON (2) REPEAL OF BONDING REQUIREMENT ON ‘‘(i) such dollar amount, multiplied by DISPOSITION OF BUILDING.—Paragraph (6) of DISPOSITION OF BUILDING.—The amendment ‘‘(ii) the cost-of-living adjustment deter- section 42(j) (relating to no recapture on dis- made by subsection (c) shall apply to— mined under section 1(f)(3) for such calendar position of building (or interest therein) (A) interests in buildings disposed after the year by substituting ‘calendar year 2008’ for where bond posted) is amended to read as fol- date of the enactment of this Act, and ‘calendar year 1992’ in subparagraph (B) lows: (B) interests in buildings disposed of on or thereof. ‘‘(6) NO RECAPTURE ON DISPOSITION OF before such date if— Any increase under the preceding sentence BUILDING WHICH CONTINUES IN QUALIFIED (i) it is reasonably expected that such which is not a multiple of $100 shall be USE.— building will continue to be operated as a rounded to the nearest multiple of $100.’’. ‘‘(A) IN GENERAL.—The increase in tax qualified low-income building (within the (3) CONFORMING AMENDMENT.—Subclause under this subsection shall not apply solely meaning of section 42 of the Internal Rev- (II) of section 42(f)(5)(B)(ii) is amended by by reason of the disposition of a building (or enue Code of 1986) for the remaining compli- striking ‘‘if subsection (e)(3)(A)(ii)(II)’’ and an interest therein) if it is reasonably ex- ance period (within the meaning of such sec- all that follows and inserting ‘‘if the dollar pected that such building will continue to be tion) with respect to such building, and amount in effect under subsection operated as a qualified low-income building (ii) the taxpayer elects the application of (e)(3)(A)(ii)(II) were two-thirds of such for the remaining compliance period with re- this subparagraph with respect to such dis- amount.’’. spect to such building. position.

VerDate Mar 15 2010 15:08 Nov 08, 2010 Jkt 069102 PO 00000 Frm 00084 Fmt 0688 Sfmt 0634 E:\BR08\H08MY8.003 H08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD 8228 CONGRESSIONAL RECORD—HOUSE, Vol. 154, Pt. 6 May 8, 2008 Notwithstanding the preceding sentence, the rules) is amended by adding at the end the SEC. 710. EXCEPTION TO ANNUAL CURRENT IN- amendments made by subsection (c) shall following new subparagraph: COME DETERMINATION REQUIRE- not apply to any disposition after the date 5 ‘‘(C) STUDENTS.—Rules similar to the rules MENT WHERE DETERMINATION NOT years after the date of the enactment of this of 42(i)(3)(D) shall apply for purposes of this RELEVANT. Act. subsection.’’. (a) IN GENERAL.—Subparagraph (A) of sec- (3) ENERGY EFFICIENCY AND HISTORIC NA- (c) SINGLE-ROOM OCCUPANCY UNITS.—Para- tion 142(d)(3) is amended by adding at the TURE TAKEN INTO ACCOUNT IN MAKING ALLOCA- graph (2) of section 142(d) (relating to defini- end the following new sentence: ‘‘The pre- TIONS.—The amendments made by subsection tions and special rules), as amended by sub- ceding sentence shall not apply with respect (d) shall apply to allocations made after De- section (b), is further amended by adding at to any project for any year if during such cember 31, 2008. the end the following new subparagraph: year no residential unit in the project is oc- (4) CONTINUED ELIGIBILITY FOR STUDENTS ‘‘(D) SINGLE-ROOM OCCUPANCY UNITS.—A cupied by a new resident whose income ex- WHO RECEIVED FOSTER CARE ASSISTANCE.—The unit shall not fail to be treated as a residen- ceeds the applicable income limit.’’. amendments made by subsection (e) shall tial unit merely because such unit is a sin- (b) EFFECTIVE DATE.—The amendment apply to determinations made after the date gle-room occupancy unit (within the mean- made by this section shall apply to years of the enactment of this Act. ing of section 42).’’. ending after the date of the enactment of (5) TREATMENT OF RURAL PROJECTS.—The (d) EFFECTIVE DATE.—The amendments this Act. amendment made by subsection (f) shall made by this section shall apply to deter- PART 2—SINGLE FAMILY HOUSING apply to determinations made after the date minations of the status of qualified residen- SEC. 712. FIRST-TIME HOMEBUYER CREDIT. of the enactment of this Act. tial rental projects for periods beginning after the date of the enactment of this Act, (a) IN GENERAL.—Subpart C of part IV of Subpart B—Modifications to Tax-Exempt subchapter A of chapter 1 is amended by re- Housing Bond Rules with respect to bonds issued before, on, or after such date. designating section 36 as section 37 and by SEC. 706. RECYCLING OF TAX-EXEMPT DEBT FOR inserting after section 35 the following new Subpart C—Reforms Related to the Low-In- FINANCING RESIDENTIAL RENTAL section: PROJECTS. come Housing Credit and Tax-Exempt (a) IN GENERAL.—Subsection (i) of section Housing Bonds ‘‘SEC. 36. FIRST-TIME HOMEBUYER CREDIT. 146 (relating to treatment of refunding SEC. 709. HOLD HARMLESS FOR REDUCTIONS IN ‘‘(a) ALLOWANCE OF CREDIT.—In the case of issues) is amended by adding at the end the AREA MEDIAN GROSS INCOME. an individual who is a first-time homebuyer following new paragraph: (a) IN GENERAL.—Paragraph (2) of section of a principal residence in the United States ‘‘(6) TREATMENT OF CERTAIN RESIDENTIAL 142(d), as amended by section 707, is further during a taxable year, there shall be allowed RENTAL PROJECT BONDS AS REFUNDING BONDS amended by adding at the end the following as a credit against the tax imposed by this IRRESPECTIVE OF OBLIGOR.— new subparagraph: subtitle for such taxable year an amount ‘‘(A) IN GENERAL.—If, during the 6-month ‘‘(E) HOLD HARMLESS FOR REDUCTIONS IN equal to 10 percent of the purchase price of period beginning on the date of a repayment AREA MEDIAN GROSS INCOME.— the residence. of a loan financed by an issue 95 percent or ‘‘(i) IN GENERAL.—Any determination of ‘‘(b) LIMITATIONS.— more of the net proceeds of which are used to area median gross income under subpara- ‘‘(1) DOLLAR LIMITATION.— provide projects described in section 142(d), graph (B) with respect to any project for any ‘‘(A) IN GENERAL.—Except as otherwise pro- such repayment is used to provide a new loan calendar year after 2008 shall not be less vided in this paragraph, the credit allowed for any project so described, any bond which than the area median gross income deter- under subsection (a) shall not exceed $7,500. is issued to refinance such issue shall be mined under such subparagraph with respect ‘‘(B) MARRIED INDIVIDUALS FILING SEPA- treated as a refunding issue to the extent the to such project for the calendar year pre- RATELY.—In the case of a married individual principal amount of such refunding issue ceding the calendar year for which such de- filing a separate return, subparagraph (A) does not exceed the principal amount of the termination is made. shall be applied by substituting ‘$3,750’ for bonds refunded. ‘‘(ii) SPECIAL RULE FOR CERTAIN CENSUS ‘$7,500’. ‘‘(B) LIMITATIONS.—Subparagraph (A) shall CHANGES.—In the case of a HUD hold harm- ‘‘(C) OTHER INDIVIDUALS.—If two or more apply to only one refunding of the original less impacted project, the area median gross individuals who are not married purchase a issue and only if— income with respect to such project for any principal residence, the amount of the credit ‘‘(i) the refunding issue is issued not later calendar year after 2008 (hereafter in this allowed under subsection (a) shall be allo- than 4 years after the date on which the clause referred to as the current calendar cated among such individuals in such man- original issue was issued, year) shall be the greater of the amount de- ner as the Secretary may prescribe, except ‘‘(ii) the latest maturity date of any bond termined without regard to this clause or that the total amount of the credits allowed of the refunding issue is not later than 34 the sum of— to all such individuals shall not exceed years after the date on which the refunded ‘‘(I) the area median gross income deter- $7,500. bond was issued, and mined under the HUD hold harmless policy ‘‘(2) LIMITATION BASED ON MODIFIED AD- ‘‘(iii) the refunding issue is approved in ac- with respect to such project for calendar JUSTED GROSS INCOME.— cordance with section 147(f) before the year 2008, plus ‘‘(A) IN GENERAL.—The amount allowable issuance of the refunding issue.’’. ‘‘(II) any increase in the area median gross as a credit under subsection (a) (determined (b) LOW-INCOME HOUSING CREDIT.—Clause income determined under subparagraph (B) without regard to this paragraph) for the (ii) of section 42(h)(4)(A) is amended by in- (determined without regard to the HUD hold taxable year shall be reduced (but not below serting ‘‘or such financing is refunded as de- harmless policy and this subparagraph) with zero) by the amount which bears the same scribed in section 146(i)(6)’’ before the period respect to such project for the current cal- ratio to the amount which is so allowable at the end. endar year over the area median gross in- as— (c) EFFECTIVE DATE.—The amendments come (as so determined) with respect to such ‘‘(i) the excess (if any) of— made by this section shall apply to repay- project for calendar year 2008. ‘‘(I) the taxpayer’s modified adjusted gross ments of loans received after the date of the ‘‘(iii) HUD HOLD HARMLESS POLICY.—The income for such taxable year, over enactment of this Act. term ‘HUD hold harmless policy’ means the ‘‘(II) $70,000 ($140,000 in the case of a joint SEC. 707. COORDINATION OF CERTAIN RULES AP- regulations under which a policy similar to return), bears to PLICABLE TO LOW-INCOME HOUS- ‘‘(ii) $20,000. ING CREDIT AND QUALIFIED RESI- the rules of clause (i) applied to prevent a DENTIAL RENTAL PROJECT EXEMPT change in the method of determining area ‘‘(B) MODIFIED ADJUSTED GROSS INCOME.— FACILITY BONDS. median gross income from resulting in a re- For purposes of subparagraph (A), the term (a) DETERMINATION OF NEXT AVAILABLE duction in the area median gross income de- ‘modified adjusted gross income’ means the UNIT.—Paragraph (3) of section 142(d) (relat- termined with respect to certain projects in adjusted gross income of the taxpayer for the ing to current income determinations) is calendar years 2007 and 2008. taxable year increased by any amount ex- amended by adding at the end the following ‘‘(iv) HUD HOLD HARMLESS IMPACTED cluded from gross income under section 911, new subparagraph: PROJECT.—The term ‘HUD hold harmless im- 931, or 933. ‘‘(C) EXCEPTION FOR PROJECTS WITH RESPECT pacted project’ means any project with re- ‘‘(c) DEFINITIONS.—For purposes of this sec- TO WHICH AFFORDABLE HOUSING CREDIT IS AL- spect to which area median gross income was tion— LOWED.—In the case of a project with respect determined under subparagraph (B) for cal- ‘‘(1) FIRST-TIME HOMEBUYER.—The term to which credit is allowed under section 42, endar year 2007 or 2008 if such determination ‘first-time homebuyer’ means any individual the second sentence of subparagraph (B) would have been less but for the HUD hold if such individual (and if married, such indi- shall be applied by substituting ‘building harmless policy.’’. vidual’s spouse) had no present ownership in- (within the meaning of section 42)’ for (b) EFFECTIVE DATE.—The amendment terest in a principal residence during the 3- ‘project’.’’. made by this section shall apply to deter- year period ending on the date of the pur- (b) STUDENTS.—Paragraph (2) of section minations of area median gross income for chase of the principal residence to which this 142(d) (relating to definitions and special calendar years after 2008. section applies.

VerDate Mar 15 2010 15:08 Nov 08, 2010 Jkt 069102 PO 00000 Frm 00085 Fmt 0688 Sfmt 0634 E:\BR08\H08MY8.003 H08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD May 8, 2008 CONGRESSIONAL RECORD—HOUSE, Vol. 154, Pt. 6 8229

‘‘(2) PRINCIPAL RESIDENCE.—The term ‘prin- ‘‘(3) LIMITATION BASED ON GAIN.—In the SEC. 713. ADDITIONAL STANDARD DEDUCTION cipal residence’ has the same meaning as case of the sale of the principal residence to FOR REAL PROPERTY TAXES FOR when used in section 121. a person who is not related to the taxpayer, NONITEMIZERS. ‘‘(3) PURCHASE.— the increase in tax determined under para- (a) IN GENERAL.—Section 63(c)(1) (defining ‘‘(A) IN GENERAL.—The term ‘purchase’ graph (2) shall not exceed the amount of gain standard deduction) is amended by striking means any acquisition, but only if— (if any) on such sale. Solely for purposes of ‘‘and’’ at the end of subparagraph (A), by ‘‘(i) the property is not acquired from a the preceding sentence, the adjusted basis of striking the period at the end of subpara- person related to the person acquiring it, and such residence shall be reduced by the graph (B) and inserting ‘‘, and’’, and by add- ‘‘(ii) the basis of the property in the hands amount of the credit allowed under sub- ing at the end the following new subpara- of the person acquiring it is not deter- section (a) to the extent not previously re- graph: ‘‘(C) in the case of any taxable year begin- mined— captured under paragraph (1). ning in 2008, the real property tax deduc- ‘‘(I) in whole or in part by reference to the ‘‘(4) EXCEPTIONS.— tion.’’. adjusted basis of such property in the hands ‘‘(A) DEATH OF TAXPAYER.—Paragraphs (1) of the person from whom acquired, or (b) DEFINITION.—Section 63(c) is amended and (2) shall not apply to any taxable year by adding at the end the following new para- ‘‘(II) under section 1014(a) (relating to ending after the date of the taxpayer’s death. property acquired from a decedent). graph: ‘‘(B) INVOLUNTARY CONVERSION.—Paragraph ‘‘(B) CONSTRUCTION.—A residence which is ‘‘(7) REAL PROPERTY TAX DEDUCTION.—For (2) shall not apply in the case of a residence purposes of paragraph (1), the real property constructed by the taxpayer shall be treated which is compulsorily or involuntarily con- as purchased by the taxpayer on the date the tax deduction is the lesser of— verted (within the meaning of section taxpayer first occupies such residence. ‘‘(A) the amount allowable as a deduction 1033(a)) if the taxpayer acquires a new prin- ‘‘(4) PURCHASE PRICE.—The term ‘purchase under this chapter for State and local taxes cipal residence during the 2-year period be- price’ means the adjusted basis of the prin- described in section 164(a)(1), or ginning on the date of the disposition or ces- cipal residence on the date such residence is ‘‘(B) $350 ($700 in the case of a joint return). sation referred to in paragraph (2). Para- purchased. graph (2) shall apply to such new principal Any taxes taken into account under section ‘‘(5) RELATED PERSONS.—A person shall be 62(a) shall not be taken into account under residence during the recapture period in the treated as related to another person if the this paragraph.’’. same manner as if such new principal resi- relationship between such persons would re- (c) EFFECTIVE DATE.—The amendments dence were the converted residence. sult in the disallowance of losses under sec- made by this section shall apply to taxable ‘‘(C) TRANSFERS BETWEEN SPOUSES OR INCI- tion 267 or 707(b) (but, in applying section years beginning after December 31, 2007. DENT TO DIVORCE.—In the case of a transfer of 267(b) and (c) for purposes of this section, PART 3—GENERAL PROVISIONS paragraph (4) of section 267(c) shall be treat- a residence to which section 1041(a) applies— ed as providing that the family of an indi- ‘‘(i) paragraph (2) shall not apply to such SEC. 715. TEMPORARY LIBERALIZATION OF TAX- EXEMPT HOUSING BOND RULES. vidual shall include only his spouse, ances- transfer, and (a) TEMPORARY INCREASE IN VOLUME CAP.— tors, and lineal descendants). ‘‘(ii) in the case of taxable years ending (1) IN GENERAL.—Subsection (d) of section ‘‘(d) EXCEPTIONS.—No credit under sub- after such transfer, paragraphs (1) and (2) section (a) shall be allowed to any taxpayer shall apply to the transferee in the same 146 is amended by adding at the end the fol- for any taxable year with respect to the pur- manner as if such transferee were the trans- lowing new paragraph: chase of a residence if— feror (and shall not apply to the transferor). ‘‘(5) INCREASE AND SET ASIDE FOR HOUSING BONDS FOR 2008.— ‘‘(1) a credit under section 1400C (relating ‘‘(5) JOINT RETURNS.—In the case of a credit to first-time homebuyer in the District of allowed under subsection (a) with respect to ‘‘(A) INCREASE FOR 2008.—In the case of cal- Columbia) is allowable to the taxpayer (or a joint return, half of such credit shall be endar year 2008, the State ceiling for each the taxpayer’s spouse) for such taxable year treated as having been allowed to each indi- State shall be increased by an amount equal to $10,000,000,000 multiplied by a fraction— or any prior taxable year, vidual filing such return for purposes of this ‘‘(i) the numerator of which is the popu- ‘‘(2) the residence is financed by the pro- subsection. lation of such State, and ceeds of a qualified mortgage issue the inter- ‘‘(6) RECAPTURE PERIOD.—For purposes of ‘‘(ii) the denominator of which is the total est on which is exempt from tax under sec- this subsection, the term ‘recapture period’ population of all States. tion 103, means the 15 taxable years beginning with ‘‘(B) SET ASIDE.— ‘‘(3) the taxpayer is a nonresident alien, or the second taxable year following the tax- ‘‘(i) IN GENERAL.—Any amount of the State ‘‘(4) the taxpayer disposes of such residence able year in which the purchase of the prin- ceiling for any State which is attributable to (or such residence ceases to be the principal cipal residence for which a credit is allowed an increase under this paragraph shall be al- residence of the taxpayer (and, if married, under subsection (a) was made. the taxpayer’s spouse)) before the close of located solely for one or more qualified hous- such taxable year. ‘‘(g) APPLICATION OF SECTION.—This section ing issues. ‘‘(e) REPORTING.—If the Secretary requires shall only apply to a principal residence pur- ‘‘(ii) QUALIFIED HOUSING ISSUE.—For pur- information reporting under section 6045 by chased by the taxpayer on or after April 9, poses of this paragraph, the term ‘qualified a person described in subsection (e)(2) there- 2008, and before April 1, 2009.’’. housing issue’ means— of to verify the eligibility of taxpayers for ‘‘(I) an issue described in section 142(a)(7) (b) CONFORMING AMENDMENTS.— the credit allowable by this section, the ex- (relating to qualified residential rental (1) Section 26(b)(2) is amended by striking ception provided by section 6045(e) shall not projects), or ‘‘and’’ at the end of subparagraph (U), by apply. ‘‘(II) a qualified mortgage issue (deter- striking the period and inserting ‘‘, and’’ and ‘‘(f) RECAPTURE OF CREDIT.— mined by substituting ‘12-month period’ for the end of subparagraph (V), and by inserting ‘‘(1) IN GENERAL.—Except as otherwise pro- ‘42-month period’ each place it appears in vided in this subsection, if a credit under after subparagraph (V) the following new section 143(a)(2)(D)(i)).’’. subparagraph: subsection (a) is allowed to a taxpayer, the (2) CARRYFORWARD OF UNUSED LIMITA- ‘‘(W) section 36(f) (relating to recapture of tax imposed by this chapter shall be in- TIONS.—Subsection (f) of section 146 is homebuyer credit).’’. creased by 62⁄3 percent of the amount of such amended by adding at the end the following credit for each taxable year in the recapture (2) Section 6211(b)(4)(A) is amended by new paragraph: striking ‘‘34,’’ and all that follows through period. ‘‘(6) SPECIAL RULES FOR INCREASED VOLUME ‘‘6428’’ and inserting ‘‘34, 35, 36, 53(e), and ‘‘(2) ACCELERATION OF RECAPTURE.—If a tax- CAP UNDER SUBSECTION (d)(5).—No amount payer disposes of the principal residence 6428’’. which is attributable to the increase under with respect to which a credit was allowed (3) Section 1324(b)(2) of title 31, United subsection (d)(5) may be used— under subsection (a) (or such residence States Code, is amended by inserting ‘‘, 36,’’ ‘‘(A) for any issue other than a qualified ceases to be the principal residence of the after ‘‘section 35’’. housing issue (as defined in subsection taxpayer (and, if married, the taxpayer’s (4) The table of sections for subpart C of (d)(5)), or spouse)) before the end of the recapture pe- part IV of subchapter A of chapter 1 is ‘‘(B) to issue any bond after calendar year riod— amended by redesignating the item relating 2010.’’. ‘‘(A) the tax imposed by this chapter for to section 36 as an item relating to section 37 (b) TEMPORARY RULE FOR USE OF QUALIFIED the taxable year of such disposition or ces- and by inserting before such item the fol- MORTGAGE BONDS PROCEEDS FOR SUBPRIME sation, shall be increased by the excess of lowing new item: REFINANCING LOANS.— the amount of the credit allowed over the ‘‘Sec. 36. First-time homebuyer credit.’’. (1) IN GENERAL.—Section 143(k) (relating to amounts of tax imposed by paragraph (1) for other definitions and special rules) is amend- preceding taxable years, and (c) EFFECTIVE DATE.—The amendments ed by adding at the end the following new ‘‘(B) paragraph (1) shall not apply with re- made by this section shall apply to resi- paragraph: spect to such credit for such taxable year or dences purchased on or after April 9, 2008, in ‘‘(12) SPECIAL RULES FOR SUBPRIME any subsequent taxable year. taxable years ending on or after such date. REFINANCINGS.—

VerDate Mar 15 2010 15:08 Nov 08, 2010 Jkt 069102 PO 00000 Frm 00086 Fmt 0688 Sfmt 0634 E:\BR08\H08MY8.003 H08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD 8230 CONGRESSIONAL RECORD—HOUSE, Vol. 154, Pt. 6 May 8, 2008

‘‘(A) IN GENERAL.—Notwithstanding the re- (c) ALLOWANCE OF REHABILITATION CREDIT penalty of perjury, that the qualified sub- quirements of subsection (i)(1), the proceeds AGAINST ALTERNATIVE MINIMUM TAX.—Sub- stitute has such affidavit in his possession. of a qualified mortgage issue may be used to paragraph (B) of section 38(c)(4), as amended ‘‘(B) REGULATIONS.—The Secretary shall refinance a mortgage on a residence which by subsection (b), is amended by striking prescribe such regulations as may be nec- was originally financed by the mortgagor ‘‘and’’ at the end of clause (iv), by redesig- essary or appropriate to carry out this para- through a qualified subprime loan. nating clause (v) as clause (vi), and by in- graph.’’. ‘‘(B) SPECIAL RULES.—In applying subpara- serting after clause (iv) the following new (b) QUALIFIED SUBSTITUTE.—Subsection (f) graph (A) to any refinancing— clause: of section 1445 (relating to definitions) is ‘‘(i) subsection (a)(2)(D)(i) shall be applied ‘‘(v) the credit determined under section 47 amended by adding at the end the following by substituting ‘12-month period’ for ‘42- to the extent attributable to qualified reha- new paragraph: month period’ each place it appears, bilitation expenditures properly taken into ‘‘(6) QUALIFIED SUBSTITUTE.—The term ‘‘(ii) subsection (d) (relating to 3-year re- account for periods after December 31, 2007, ‘qualified substitute’ means, with respect to quirement) shall not apply, and and’’. a disposition of a United States real property ‘‘(iii) subsection (e) (relating to purchase (d) EFFECTIVE DATE.— interest— price requirement) shall be applied by using (1) HOUSING BONDS.—The amendments ‘‘(A) the person (including any attorney or the market value of the residence at the made by subsection (a) shall apply to bonds title company) responsible for closing the time of refinancing in lieu of the acquisition issued after the date of the enactment of this transaction, other than the transferor’s cost. Act. agent, and ‘‘(C) QUALIFIED SUBPRIME LOAN.—The term (2) LOW INCOME HOUSING CREDIT.—The ‘‘(B) the transferee’s agent.’’. ‘qualified subprime loan’ means an adjust- amendments made by subsection (b) shall (c) EXEMPTION NOT TO APPLY IF KNOWL- able rate single-family residential mortgage apply to credits determined under section 42 EDGE OR NOTICE THAT AFFIDAVIT OR STATE- loan made after December 31, 2001, and before of the Internal Revenue Code of 1986 to the MENT IS FALSE.— January 1, 2008, that the bond issuer deter- extent attributable to buildings placed in (1) IN GENERAL.—Paragraph (7) of section mines would be reasonably likely to cause fi- service after December 31, 2007. 1445(b) (relating to special rules for para- nancial hardship to the borrower if not refi- (3) REHABILITATION CREDIT.—The amend- graphs (2) and (3)) is amended to read as fol- nanced. ments made by subsection (c) shall apply to lows: ‘‘(D) TERMINATION.—This paragraph shall credits determined under section 47 of the In- ‘‘(7) SPECIAL RULES FOR PARAGRAPHS (2), (3), not apply to any bonds issued after Decem- ternal Revenue Code of 1986 to the extent at- AND (9).—Paragraph (2), (3), or (9) (as the case ber 31, 2010.’’. tributable to qualified rehabilitation expend- may be) shall not apply to any disposition— (c) EFFECTIVE DATE.—The amendments itures properly taken into account for peri- ‘‘(A) if— made by this section shall apply to bonds ods after December 31, 2007. ‘‘(i) the transferee or qualified substitute has actual knowledge that the affidavit re- issued after the date of the enactment of this SEC. 717. BONDS GUARANTEED BY FEDERAL Act. HOME LOAN BANKS ELIGIBLE FOR ferred to in such paragraph, or the statement referred to in paragraph (9)(A)(ii), is false, or SEC. 716. REPEAL OF ALTERNATIVE MINIMUM TREATMENT AS TAX-EXEMPT BONDS. TAX LIMITATIONS ON TAX-EXEMPT (a) IN GENERAL.—Subparagraph (A) of sec- ‘‘(ii) the transferee or qualified substitute HOUSING BONDS, LOW-INCOME tion 149(b)(3) (relating to exceptions for cer- receives a notice (as described in subsection HOUSING TAX CREDIT, AND REHA- tain insurance programs) is amended by (d)) from a transferor’s agent, transferee’s BILITATION CREDIT. striking ‘‘or’’ at the end of clause (ii), by agent, or qualified substitute that such affi- (a) TAX-EXEMPT INTEREST ON CERTAIN striking the period at the end of clause (iii) davit or statement is false, or HOUSING BONDS EXEMPTED FROM ALTER- and inserting ‘‘, or’’ and by adding at the end ‘‘(B) if the Secretary by regulations re- NATIVE MINIMUM TAX.— the following new clause: quires the transferee or qualified substitute (1) IN GENERAL.—Subparagraph (C) of sec- ‘‘(iv) any guarantee by a Federal home to furnish a copy of such affidavit or state- tion 57(a)(5) (relating to specified private ac- loan bank made in connection with the origi- ment to the Secretary and the transferee or tivity bonds) is amended by redesignating nal issuance of a bond during the period be- qualified substitute fails to furnish a copy of clauses (iii) and (iv) as clauses (iv) and (v), ginning on the date of the enactment of this such affidavit or statement to the Secretary respectively, and by inserting after clause Act and ending on December 31, 2010 (or a re- at such time and in such manner as required (ii) the following new clause: newal or extension of a guarantee so by such regulations.’’. ‘‘(iii) EXCEPTION FOR CERTAIN HOUSING made).’’. (2) LIABILITY.— BONDS.—For purposes of clause (i), the term (b) SAFETY AND SOUNDNESS REQUIRE- (A) NOTICE.—Paragraph (1) of section ‘private activity bond’ shall not include any MENTS.—Paragraph (3) of section 149(b) is 1445(d) (relating to notice of false affidavit; bond issued after the date of the enactment amended by adding at the end the following foreign corporations) is amended to read as of this clause if such bond is— new subparagraph: follows: ‘‘(I) an exempt facility bond issued as part ‘‘(E) SAFETY AND SOUNDNESS REQUIREMENTS ‘‘(1) NOTICE OF FALSE AFFIDAVIT; FOREIGN of an issue 95 percent or more of the net pro- FOR FEDERAL HOME LOAN BANKS.—Clause (iv) CORPORATIONS.—If— ceeds of which are to be used to provide of subparagraph (A) shall not apply to any ‘‘(A) the transferor furnishes the transferee qualified residential rental projects (as de- guarantee by a Federal home loan bank un- or qualified substitute an affidavit described fined in section 142(d)), less such bank meets safety and soundness in paragraph (2) of subsection (b) or a domes- ‘‘(II) a qualified mortgage bond (as defined collateral requirements for such guarantees tic corporation furnishes the transferee an in section 143(a)), or which are at least as stringent as such re- affidavit described in paragraph (3) of sub- ‘‘(III) a qualified veterans’ mortgage bond quirements which apply under regulations section (b), and (as defined in section 143(b)). applicable to such guarantees by Federal ‘‘(B) in the case of— The preceding sentence shall not apply to home loan banks as in effect on April 9, ‘‘(i) any transferor’s agent— any refunding bond unless such preceding 2008.’’. ‘‘(I) such agent has actual knowledge that sentence applied to the refunded bond (or in (c) EFFECTIVE DATE.—The amendments such affidavit is false, or the case of a series of refundings, the origi- made by this section shall apply to guaran- ‘‘(II) in the case of an affidavit described in nal bond).’’. tees made after the date of the enactment of subsection (b)(2) furnished by a corporation, (2) NO ADJUSTMENT TO ADJUSTED CURRENT this Act. such corporation is a foreign corporation, or ‘‘(ii) any transferee’s agent or qualified EARNINGS.—Subparagraph (B) of section SEC. 718. MODIFICATION OF RULES PERTAINING 56(g)(4) is amended by adding at the end the TO FIRPTA NONFOREIGN AFFIDA- substitute, such agent or substitute has ac- following new clause: VITS. tual knowledge that such affidavit is false, ‘‘(iii) TAX EXEMPT INTEREST ON CERTAIN (a) IN GENERAL.—Subsection (b) of section such agent or qualified substitute shall so HOUSING BONDS.—Clause (i) shall not apply in 1445 (relating to exemptions) is amended by notify the transferee at such time and in the case of any interest on a bond to which adding at the end the following: such manner as the Secretary shall require section 57(a)(5)(C)(iii) applies.’’. ‘‘(9) ALTERNATIVE PROCEDURE FOR FUR- by regulations.’’. (b) ALLOWANCE OF LOW-INCOME HOUSING NISHING NONFOREIGN AFFIDAVIT.—For pur- (B) FAILURE TO FURNISH NOTICE.—Para- CREDIT AGAINST ALTERNATIVE MINIMUM poses of paragraphs (2) and (7)— graph (2) of section 1445(d) (relating to fail- TAX.—Subparagraph (B) of section 38(c)(4) ‘‘(A) IN GENERAL.—Paragraph (2) shall be ure to furnish notice) is amended to read as (relating to specified credits) is amended by treated as applying to a transaction if, in follows: redesignating clauses (ii) through (iv) as connection with a disposition of a United ‘‘(2) FAILURE TO FURNISH NOTICE.— clauses (iii) through (v) and inserting after States real property interest— ‘‘(A) IN GENERAL.—If any transferor’s clause (i) the following new clause: ‘‘(i) the affidavit specified in paragraph (2) agent, transferee’s agent, or qualified sub- ‘‘(ii) the credit determined under section 42 is furnished to a qualified substitute, and stitute is required by paragraph (1) to fur- to the extent attributable to buildings ‘‘(ii) the qualified substitute furnishes a nish notice, but fails to furnish such notice placed in service after December 31, 2007,’’. statement to the transferee stating, under at such time or times and in such manner as

VerDate Mar 15 2010 15:08 Nov 08, 2010 Jkt 069102 PO 00000 Frm 00087 Fmt 0688 Sfmt 0634 E:\BR08\H08MY8.003 H08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD May 8, 2008 CONGRESSIONAL RECORD—HOUSE, Vol. 154, Pt. 6 8231 may be required by regulations, such agent ‘‘(i) subsection (c)(3) (without regard to ‘‘(i) gain (including any foreign currency or substitute shall have the same duty to de- subparagraph (J) thereof) for the taxable gain, as defined in section 988(b)(1)) from the duct and withhold that the transferee would year, and sale or other disposition of foreclosure prop- have had if such agent or substitute had ‘‘(ii) subsection (c)(4)(A) at the close of erty described in section 1221(a)(1) and the complied with paragraph (1). each quarter that the real estate investment gross income for the taxable year derived ‘‘(B) LIABILITY LIMITED TO AMOUNT OF COM- trust has directly or indirectly held the from foreclosure property (as defined in sec- PENSATION.—An agent’s or substitute’s liabil- qualified business unit, and tion 856(e)), but only to the extent such gross ity under subparagraph (A) shall be limited ‘‘(C) any other foreign currency gains as income is not described in (or, in the case of to the amount of compensation the agent or determined by the Secretary. foreign currency gain, not attributable to substitute derives from the transaction.’’. ‘‘(2) PASSIVE FOREIGN EXCHANGE GAINS.— gross income described in) section 856(c)(3) (C) CONFORMING AMENDMENT.—The heading For purposes of subsection (c)(2)(I), the term other than subparagraph (F) thereof, over’’. for section 1445(d) is amended by striking ‘passive foreign exchange gains’ means— (b) NET INCOME FROM PROHIBITED TRANS- ‘‘OR TRANSFEREE’S AGENTS’’ and inserting ‘‘, ‘‘(A) real estate foreign exchange gains, ACTIONS.—Clause (i) of section 857(b)(6)(B) is TRANSFEREE’S AGENTS, OR QUALIFIED SUB- ‘‘(B) foreign currency gains (as defined in amended to read as follows: STITUTES’’. section 988(b)(1)) which are not described in ‘‘(i) the term ‘net income derived from pro- (d) EFFECTIVE DATE.—The amendments subparagraph (A) and which are attributable hibited transactions’ means the excess of the made by this section shall apply to disposi- to any item described in subsection (c)(2) gain (including any foreign currency gain, as tions of United States real property interests (other than in subparagraph (I) thereof), and defined in section 988(b)(1)) from prohibited after the date of the enactment of this Act. ‘‘(C) any other foreign currency gains as transactions over the deductions (including SEC. 719. MODIFICATION OF DEFINITION OF TAX- determined by the Secretary.’’. any foreign currency loss, as defined in sec- EXEMPT USE PROPERTY FOR PUR- (c) ADDITION TO REIT HEDGING RULE.—Sub- tion 988(b)(2)) allowed by this chapter which POSES OF THE REHABILITATION paragraph (G) of section 856(c)(5) is amended are directly connected with prohibited trans- CREDIT. to read as follows: actions;’’. (a) IN GENERAL.—Subclause (I) of section ‘‘(G) TREATMENT OF CERTAIN HEDGING IN- PART 2—TAXABLE REIT SUBSIDIARIES 47(c)(2)(B)(v) is amended by striking ‘‘section STRUMENTS.—Except to the extent as deter- 168(h)’’ and inserting ‘‘section 168(h), except SEC. 725. CONFORMING TAXABLE REIT SUB- mined by the Secretary— SIDIARY ASSET TEST. that ‘50 percent’ shall be substituted for ‘35 ‘‘(i) any income of a real estate investment percent’ in paragraph (1)(B)(iii) thereof’’. Section 856(c)(4)(B)(ii) is amended by strik- trust from a hedging transaction (as defined ing ‘‘20 percent’’ and inserting ‘‘25 percent’’. (b) EFFECTIVE DATE.—The amendments in clause (ii) or (iii) of section 1221(b)(2)(A)) made by this section shall apply to expendi- which is clearly identified pursuant to sec- PART 3—DEALER SALES tures properly taken into account for periods tion 1221(a)(7), including gain from the sale SEC. 727. HOLDING PERIOD UNDER SAFE HAR- after December 31, 2007. or disposition of such a transaction, shall BOR. Subtitle B—Reforms Related to Real Estate not constitute gross income under para- Section 857(b)(6) (relating to income from Investment Trusts graphs (2) and (3) to the extent that the prohibited transactions) is amended— PART 1—FOREIGN CURRENCY AND OTHER transaction hedges any indebtedness in- (1) by striking ‘‘4 years’’ in subparagraphs QUALIFIED ACTIVITIES curred or to be incurred by the trust to ac- (C)(i), (C)(iv), and (D)(i) and inserting ‘‘2 years’’, SEC. 721. REVISIONS TO REIT INCOME TESTS. quire or carry real estate assets, and (2) by striking ‘‘4-year period’’ in subpara- (a) ADDITION OF PERMISSIBLE INCOME CAT- ‘‘(ii) any income of a real estate invest- graphs (C)(ii), (D)(ii), and (D)(iii) and insert- EGORIES.—Section 856(c) (relating to limita- ment trust from a transaction entered into ing ‘‘2-year period’’, and tions) is amended— by the trust primarily to manage risk of cur- (3) by striking ‘‘real estate asset’’and all (1) by striking ‘‘and’’ at the end of para- rency fluctuations with respect to any item that follows through ‘‘if’’ in the matter pre- graph (2)(G) and by inserting after paragraph described in paragraph (2) or (3), including ceding clause (i) of subparagraphs (C) and (2)(H) the following new subparagraphs: gain from the termination of such a trans- (D), respectively, and inserting ‘‘real estate ‘‘(I) passive foreign exchange gains; and action, shall not constitute gross income asset (as defined in section 856(c)(5)(B)) and ‘‘(J) any other item of income or gain as under paragraphs (2) and (3), but only if such which is described in section 1221(a)(1) if’’. determined by the Secretary;’’, and transaction is clearly identified as such be- (2) by striking ‘‘and’’ at the end of para- fore the close of the day on which it was ac- SEC. 728. DETERMINING VALUE OF SALES UNDER SAFE HARBOR. graphs (3)(H) and (3)(I) and by inserting after quired, originated, or entered into (or such Section 857(b)(6) is amended— paragraph (3)(I) the following new subpara- other time as the Secretary may pre- (1) by striking the semicolon at the end of graphs: scribe).’’. subparagraph (C)(iii) and inserting ‘‘, or (III) ‘‘(J) real estate foreign exchange gains; (d) AUTHORITY TO EXCLUDE ITEMS OF IN- the fair market value of property (other than and COME FROM REIT INCOME TESTS.—Section sales of foreclosure property or sales to ‘‘(K) any other item of income or gain as 856(c)(5) is amended by adding at the end the which section 1033 applies) sold during the determined by the Secretary; and’’. following new subparagraph: taxable year does not exceed 10 percent of (b) RULES REGARDING FOREIGN CURRENCY ‘‘(H) SECRETARIAL AUTHORITY TO EXCLUDE the fair market value of all of the assets of TRANSACTIONS.—Section 856 (defining real es- OTHER ITEMS OF INCOME.—The Secretary is tate investment trust) is amended by adding authorized to determine whether any item of the trust as of the beginning of the taxable at the end the following new subsection: income or gain which does not otherwise year;’’, and ‘‘(n) RULES REGARDING FOREIGN CURRENCY qualify under paragraph (2) or (3) may be (2) by adding ‘‘or’’ at the end of subclause TRANSACTIONS.—With respect to any taxable considered as not constituting gross income (II) of subparagraph (D)(iv) and by adding at year— solely for purposes of this part.’’. the end of such subparagraph the following ‘‘(1) REAL ESTATE FOREIGN EXCHANGE SEC. 722. REVISIONS TO REIT ASSET TESTS. new subclause: ‘‘(III) the fair market value of property GAINS.—For purposes of subsection (c)(3)(J), (a) CLARIFICATION OF VALUATION TEST.— the term ‘real estate foreign exchange gains’ The first sentence in the matter following (other than sales of foreclosure property or means— section 856(c)(4)(B)(iii)(III) is amended by in- sales to which section 1033 applies) sold dur- ‘‘(A) foreign currency gains (as defined in serting ‘‘(including a discrepancy caused ing the taxable year does not exceed 10 per- section 988(b)(1)) which are attributable to— solely by the change in the foreign currency cent of the fair market value of all of the as- ‘‘(i) any item described in subsection (c)(3) exchange rate used to value a foreign asset)’’ sets of the trust as of the beginning of the (other than in subparagraph (J) thereof), after ‘‘such requirements’’. taxable year,’’. ‘‘(ii) the acquisition or ownership of obliga- (b) CLARIFICATION OF PERMISSIBLE ASSET PART 4—HEALTH CARE REITS tions secured by mortgages on real property CATEGORY.—Section 856(c)(5), as amended by SEC. 730. CONFORMITY FOR HEALTH CARE FA- or on interests in real property (other than section 721(d), is amended by adding at the CILITIES. foreign currency gains attributable to any end the following new subparagraph: (a) RELATED PARTY RENTALS.—Subpara- item described in clause (i)), or ‘‘(I) CASH.—The term ‘cash’ includes for- graph (B) of section 856(d)(8) (relating to spe- ‘‘(iii) becoming or being the obligor under eign currency if the real estate investment cial rule for taxable REIT subsidiaries) is obligations secured by mortgages on real trust or its qualified business unit (as de- amended to read as follows: property or on interests in real property fined in section 989) uses such foreign cur- ‘‘(B) EXCEPTION FOR CERTAIN LODGING FA- (other than foreign currency gains attrib- rency as its functional currency (as defined CILITIES AND HEALTH CARE PROPERTY.—The utable to any item described in clause (i)), in section 985(b)).’’. requirements of this subparagraph are met ‘‘(B) gains described in section 987 attrib- SEC. 723. CONFORMING FOREIGN CURRENCY RE- with respect to an interest in real property utable to a qualified business unit (as defined VISIONS. which is a qualified lodging facility or a by section 989) of the real estate investment (a) NET INCOME FROM FORECLOSURE PROP- qualified health care property (as defined in trust, but only if such qualified business unit ERTY.—Clause (i) of section 857(b)(4)(B) is subsection (e)(6)(D)(i)) leased by the trust to meets the requirements under— amended to read as follows: a taxable REIT subsidiary of the trust if the

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property is operated on behalf of such sub- (c) CONFORMING FOREIGN CURRENCY REVI- ‘‘(iii) any commodity, or contract or deriv- sidiary by a person who is an eligible inde- SIONS.— ative with respect to such commodity, if the pendent contractor. For purposes of this sec- (1) The amendment made by section 723(a) Secretary determines that adjusted basis re- tion, a taxable REIT subsidiary is not con- shall apply to gains recognized after the date porting is appropriate for purposes of this sidered to be operating or managing a quali- of the enactment of this Act. subsection, and fied health care property or qualified lodging (2) The amendment made by section 723(b) ‘‘(iv) any other financial instrument with facility solely because it directly or indi- shall apply to gains and deductions recog- respect to which the Secretary determines rectly possesses a license, permit or similar nized after the date of the enactment of this that adjusted basis reporting is appropriate instrument enabling it to do so.’’. Act. for purposes of this subsection. (b) ELIGIBLE INDEPENDENT CONTRACTOR.— (d) DEALER SALES.—The amendments made ‘‘(C) APPLICABLE DATE.—The term ‘applica- Subparagraphs (A) and (B) of section 856(d)(9) by part 3 shall apply to sales made after the ble date’ means— (relating to eligible independent contractor) date of the enactment of this Act. ‘‘(i) January 1, 2010, in the case of any spec- are amended to read as follows: Subtitle C—Revenue Provisions ified security which is stock in a corporation ‘‘(A) IN GENERAL.—The term ‘eligible inde- (other than any stock described in clause SEC. 741. BROKER REPORTING OF CUSTOMER’S pendent contractor’ means, with respect to BASIS IN SECURITIES TRANS- (ii)), any qualified lodging facility or qualified ACTIONS. ‘‘(ii) January 1, 2011, in the case of any health care property (as defined in sub- (a) IN GENERAL.— stock for which an average basis method is section (e)(6)(D)(i)), any independent con- (1) BROKER REPORTING FOR SECURITIES permissible under section 1012, and tractor if, at the time such contractor enters TRANSACTIONS.—Section 6045 (relating to re- ‘‘(iii) January 1, 2012, or such later date de- into a management agreement or other simi- turns of brokers) is amended by adding at termined by the Secretary in the case of any lar service contract with the taxable REIT the end the following new subsection: other specified security. subsidiary to operate such qualified lodging ‘‘(g) ADDITIONAL INFORMATION REQUIRED IN ‘‘(4) TREATMENT OF S CORPORATIONS.—In facility or qualified health care property, THE CASE OF SECURITIES TRANSACTIONS, the case of the sale of a covered security ac- such contractor (or any related person) is ac- ETC.— quired by an S corporation (other than a fi- tively engaged in the trade or business of op- ‘‘(1) IN GENERAL.—If a broker is otherwise nancial institution) after December 31, 2011, erating qualified lodging facilities or quali- required to make a return under subsection such S corporation shall be treated in the fied health care properties, respectively, for (a) with respect to the gross proceeds of the same manner as a partnership for purposes of any person who is not a related person with sale of a covered security, the broker shall this section. respect to the real estate investment trust include in such return the information de- ‘‘(5) SPECIAL RULES FOR SHORT SALES.—In or the taxable REIT subsidiary. scribed in paragraph (2). the case of a short sale, reporting under this section shall be made for the year in which ‘‘(B) SPECIAL RULES.—Solely for purposes ‘‘(2) ADDITIONAL INFORMATION REQUIRED.— such sale is closed.’’. of this paragraph and paragraph (8)(B), a per- ‘‘(A) IN GENERAL.—The information re- son shall not fail to be treated as an inde- quired under paragraph (1) to be shown on a (2) BROKER INFORMATION REQUIRED WITH RE- pendent contractor with respect to any return with respect to a covered security of SPECT TO OPTIONS.—Section 6045, as amended qualified lodging facility or qualified health a customer shall include the customer’s ad- by subsection (a), is amended by adding at the end the following new subsection: care property (as so defined) by reason of the justed basis in such security and whether ‘‘(h) APPLICATION TO OPTIONS ON SECURI- following: any gain or loss with respect to such secu- TIES.— ‘‘(i) The taxable REIT subsidiary bears the rity is long-term or short-term (within the ‘‘(1) EXERCISE OF OPTION.—For purposes of expenses for the operation of such qualified meaning of section 1222). this section, if a covered security is acquired lodging facility or qualified health care prop- ‘‘(B) DETERMINATION OF ADJUSTED BASIS.— or disposed of pursuant to the exercise of an erty pursuant to the management agreement For purposes of subparagraph (A)— option that was granted or acquired in the or other similar service contract. ‘‘(i) IN GENERAL.—The customer’s adjusted same account as the covered security, the ‘‘(ii) The taxable REIT subsidiary receives basis shall be determined— amount received with respect to the grant or the revenues from the operation of such ‘‘(I) in the case of any security (other than paid with respect to the acquisition of such qualified lodging facility or qualified health any stock for which an average basis method option shall be treated as an adjustment to care property, net of expenses for such oper- is permissible under section 1012), in accord- gross proceeds or as an adjustment to basis, ation and fees payable to the operator pursu- ance with the first-in first-out method unless as the case may be. ant to such agreement or contract. the customer notifies the broker by means of ‘‘(2) LAPSE OR CLOSING TRANSACTION.—In ‘‘(iii) The real estate investment trust re- making an adequate identification of the the case of the lapse (or closing transaction ceives income from such person with respect stock sold or transferred, and (as defined in section 1234(b)(2)(A))) of an op- to another property that is attributable to a ‘‘(II) in the case of any stock for which an tion on a specified security or the exercise of lease of such other property to such person average basis method is permissible under a cash-settled option on a specified security, that was in effect as of the later of— section 1012, in accordance with the broker’s reporting under subsections (a) and (g) with ‘‘(I) January 1, 1999, or default method unless the customer notifies respect to such option shall be made for the ‘‘(II) the earliest date that any taxable the broker that he elects another acceptable calendar year which includes the date of REIT subsidiary of such trust entered into a method under section 1012 with respect to such lapse, closing transaction, or exercise. management agreement or other similar the account in which such stock is held. ‘‘(3) PROSPECTIVE APPLICATION.—Para- service contract with such person with re- ‘‘(ii) EXCEPTION FOR WASH SALES.—Except graphs (1) and (2) shall not apply to any op- spect to such qualified lodging facility or as otherwise provided by the Secretary, the tion which is granted or acquired before Jan- qualified health care property.’’. customer’s adjusted basis shall be deter- uary 1, 2012. AXABLE EIT UBSIDIARIES (c) T R S .—The last mined without regard to section 1091 (relat- ‘‘(4) DEFINITIONS.—For purposes of this sub- sentence of section 856(l)(3) is amended— ing to loss from wash sales of stock or secu- section, the terms ‘covered security’ and (1) by inserting ‘‘or a health care facility’’ rities) unless the transactions occur in the ‘specified security’ shall have the meanings after ‘‘a lodging facility’’, and same account with respect to identical secu- given such terms in subsection (g)(3).’’. (2) by inserting ‘‘or health care facility’’ rities. (3) EXTENSION OF PERIOD FOR STATEMENTS after ‘‘such lodging facility’’. ‘‘(3) COVERED SECURITY.—For purposes of SENT TO CUSTOMERS.— PART 5—EFFECTIVE DATES this subsection— (A) IN GENERAL.—Subsection (b) of section SEC. 732. EFFECTIVE DATES. ‘‘(A) IN GENERAL.—The term ‘covered secu- 6045 is amended by striking ‘‘January 31’’ (a) IN GENERAL.—Except as otherwise pro- rity’ means any specified security acquired and inserting ‘‘February 15’’. vided in this section, the amendments made on or after the applicable date if such secu- (B) STATEMENTS RELATED TO SUBSTITUTE by this subtitle shall apply to taxable years rity— PAYMENTS.—Subsection (d) of section 6045 is beginning after the date of the enactment of ‘‘(i) was acquired through a transaction in amended— this Act. the account in which such security is held, (i) by striking ‘‘at such time and’’, and (b) REIT INCOME TESTS.— or (ii) by inserting after ‘‘other item.’’ the (1) The amendment made by section 721(a) ‘‘(ii) was transferred to such account from following new sentence: ‘‘The written state- and (b) shall apply to gains and items of in- an account in which such security was a cov- ment required under the preceding sentence come recognized after the date of the enact- ered security, but only if the broker received shall be furnished on or before February 15 of ment of this Act. a statement under section 6045A with respect the year following the calendar year in (2) The amendment made by section 721(c) to the transfer. which the payment was made.’’. shall apply to transactions entered into after ‘‘(B) SPECIFIED SECURITY.—The term ‘speci- (C) OTHER STATEMENTS.—Subsection (b) of the date of the enactment of this Act. fied security’ means— section 6045 is amended by adding at the end (3) The amendment made by section 721(d) ‘‘(i) any share of stock in a corporation, the following: ‘‘In the case of a consolidated shall apply after the date of the enactment ‘‘(ii) any note, bond, debenture, or other reporting statement (as defined in regula- of this Act. evidence of indebtedness, tions) with respect to any account, any

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statement which would otherwise be re- ‘‘(3) SEPARATE ACCOUNTS; ELECTION FOR ‘‘(2) the quantitative effect on the basis of quired to be furnished on or before January TREATMENT AS SINGLE ACCOUNT.—Rules simi- such specified security resulting from such 31 of a calendar year with respect to any lar to the rules of subsection (c)(2) shall action, and item reportable to the taxpayer shall instead apply for purposes of this subsection. ‘‘(3) such other information as the Sec- be required to be furnished on or before Feb- ‘‘(4) DIVIDEND REINVESTMENT PLAN.—For retary may prescribe. ruary 15 of such calendar year if furnished purposes of this subsection— ‘‘(b) TIME FOR FILING RETURN.—Any return with such consolidated reporting state- ‘‘(A) IN GENERAL.—The term ‘dividend rein- required by subsection (a) shall be filed not ment.’’. vestment plan’ means any arrangement later than the earlier of— (b) DETERMINATION OF BASIS OF CERTAIN under which dividends on any stock are rein- ‘‘(1) 45 days after the date of the action de- SECURITIES ON ACCOUNT BY ACCOUNT OR AVER- vested in stock identical to the stock with scribed in subsection (a), or AGE BASIS METHOD.—Section 1012 (relating to respect to which the dividends are paid. ‘‘(2) January 15 of the year following the basis of property–cost) is amended— ‘‘(B) INITIAL STOCK ACQUISITION TREATED AS calendar year during which such action oc- (1) by striking ‘‘The basis of property’’ and ACQUIRED IN CONNECTION WITH PLAN.—Stock curred. inserting the following: shall be treated as acquired in connection ‘‘(c) STATEMENTS TO BE FURNISHED TO ‘‘(a) IN GENERAL.—The basis of property’’, with a dividend reinvestment plan if such HOLDERS OF SPECIFIED SECURITIES OR THEIR (2) by striking ‘‘The cost of real property’’ stock is acquired pursuant to such plan or if NOMINEES.—According to the forms or regu- and inserting the following: the dividends paid on such stock are subject lations prescribed by the Secretary, every ‘‘(b) SPECIAL RULE FOR APPORTIONED REAL to such plan.’’. person required to make a return under sub- ESTATE TAXES.—The cost of real property’’, (c) INFORMATION BY TRANSFERORS TO AID section (a) with respect to a specified secu- and BROKERS.— rity shall furnish to the nominee with re- (3) by adding at the end the following new (1) IN GENERAL.—Subpart B of part III of spect to the specified security (or certificate subsections: subchapter A of chapter 61 is amended by in- holder if there is no nominee) a written ‘‘(c) DETERMINATIONS BY ACCOUNT.— serting after section 6045 the following new statement showing— ‘‘(1) IN GENERAL.—In the case of the sale, exchange, or other disposition of a specified section: ‘‘(1) the name, address, and phone number security on or after the applicable date, the ‘‘SEC. 6045A. INFORMATION REQUIRED IN CON- of the information contact of the person re- conventions prescribed by regulations under NECTION WITH TRANSFERS OF COV- quired to make such return, ERED SECURITIES TO BROKERS. this section shall be applied on an account ‘‘(2) the information required to be shown ‘‘(a) FURNISHING OF INFORMATION.—Every by account basis. on such return with respect to such security, applicable person which transfers to a broker and ‘‘(2) APPLICATION TO OPEN-END FUNDS.— (as defined in section 6045(c)(1)) a security ‘‘(A) IN GENERAL.—Except as provided in ‘‘(3) such other information as the Sec- which is a covered security (as defined in retary may prescribe. subparagraph (B), any stock in an open-end section 6045(g)(3)) in the hands of such appli- The written statement required under the fund acquired before January 1, 2011, shall be cable person shall furnish to such broker a treated as a separate account from any such written statement in such manner and set- preceding sentence shall be furnished to the stock acquired on or after such date. ting forth such information as the Secretary holder on or before January 15 of the year ‘‘(B) ELECTION BY OPEN-END FUND FOR may by regulations prescribe for purposes of following the calendar year during which the TREATMENT AS SINGLE ACCOUNT.—If an open- enabling such broker to meet the require- action described in subsection (a) occurred. PECIFIED SECURITY.—For purposes of end fund elects to have this subparagraph ments of section 6045(g). ‘‘(d) S apply with respect to one or more of its ‘‘(b) APPLICABLE PERSON.—For purposes of this section, the term ‘specified security’ has stockholders— subsection (a), the term ‘applicable person’ the meaning given such term by section ‘‘(i) subparagraph (A) shall not apply with means— 6045(g)(3)(B). No return shall be required respect to any stock in such fund held by ‘‘(1) any broker (as defined in section under this section with respect to actions de- such stockholders, and 6045(c)(1)), and scribed in subsection (a) with respect to a ‘‘(ii) all stock in such fund which is held by ‘‘(2) any other person as provided by the specified security which occur before the ap- such stockholders shall be treated as covered Secretary in regulations. plicable date (as defined in section securities described in section 6045(g)(3) ‘‘(c) TIME FOR FURNISHING STATEMENT.— 6045(g)(3)(C)) with respect to such security. without regard to the date of the acquisition Except as otherwise provided by the Sec- ‘‘(e) PUBLIC REPORTING IN LIEU OF RE- of such stock. retary, any statement required by subsection TURN.—The Secretary may waive the re- A rule similar to the rule of the preceding (a) shall be furnished not later than 15 days quirements under subsections (a) and (c) sentence shall apply with respect to a broker after the date of the transfer described in with respect to a specified security, if the holding stock in an open-end fund as a nomi- such subsection.’’. person required to make the return under nee. (2) ASSESSABLE PENALTIES.—Paragraph (2) subsection (a) makes publicly available, in ‘‘(3) DEFINITIONS.—For purposes of this sec- of section 6724(d) (defining payee statement) such form and manner as the Secretary de- tion— is amended by redesignating subparagraphs termines necessary to carry out the purposes ‘‘(A) OPEN-END FUND.—The term ‘open-end (I) through (CC) as subparagraphs (J) of this section— fund’ means a regulated investment com- through (DD), respectively, and by inserting ‘‘(1) the name, address, phone number, and pany (as defined in section 851) which is of- after subparagraph (H) the following new email address of the information contact of fering for sale or has outstanding any re- subparagraph: such person, and deemable security of which it is the issuer. ‘‘(I) section 6045A (relating to information ‘‘(2) the information described in para- Any stock which is traded on an established required in connection with transfers of cov- graphs (1), (2), and (3) of subsection (a).’’. securities exchange shall not be treated as ered securities to brokers),’’. (2) ASSESSABLE PENALTIES.— stock in an open-end fund. (3) CLERICAL AMENDMENT.—The table of (A) Subparagraph (B) of section 6724(d)(1) ‘‘(B) SPECIFIED SECURITY; APPLICABLE sections for subpart B of part III of sub- of such Code (defining information return) is DATE.—The terms ‘specified security’ and chapter A of chapter 61 is amended by insert- amended by redesignating clause (iv) and ‘applicable date’ shall have the meaning ing after the item relating to section 6045 the each of the clauses which follow as clauses given such terms in section 6045(g). following new item: (v) through (xxii), respectively, and by in- ‘‘(d) AVERAGE BASIS FOR STOCK ACQUIRED ‘‘Sec. 6045A. Information required in connec- serting after clause (iii) the following new PURSUANT TO A DIVIDEND REINVESTMENT tion with transfers of covered clause: PLAN.— securities to brokers.’’. ‘‘(iv) section 6045B(a) (relating to returns ‘‘(1) IN GENERAL.—In the case of any stock (d) ADDITIONAL ISSUER INFORMATION TO AID relating to actions affecting basis of speci- acquired after December 31, 2010, in connec- BROKERS.— fied securities),’’. tion with a dividend reinvestment plan, the (1) IN GENERAL.—Subpart B of part III of (B) Paragraph (2) of section 6724(d) of such basis of such stock while held as part of such subchapter A of chapter 61, as amended by Code (defining payee statement), as amended plan shall be determined using one of the subsection (b), is amended by inserting after by subsection (c)(2), is amended by redesig- methods which may be used for determining section 6045A the following new section: nating subparagraphs (J) through (DD) as the basis of stock in an open-end fund. ‘‘SEC. 6045B. RETURNS RELATING TO ACTIONS subparagraphs (K) through (EE), respec- ‘‘(2) TREATMENT AFTER TRANSFER.—In the AFFECTING BASIS OF SPECIFIED SE- tively, and by inserting after subparagraph case of the transfer to another account of CURITIES. (I) the following new subparagraph: stock to which paragraph (1) applies, such ‘‘(a) IN GENERAL.—According to the forms ‘‘(J) subsections (c) and (e) of section 6045B stock shall have a cost basis in such other or regulations prescribed by the Secretary, (relating to returns relating to actions af- account equal to its basis in the dividend re- any issuer of a specified security shall make fecting basis of specified securities),’’. investment plan immediately before such a return setting forth— (3) CLERICAL AMENDMENT.—The table of transfer (properly adjusted for any fees or ‘‘(1) a description of any organizational ac- sections for subpart B of part III of sub- other charges taken into account in connec- tion which affects the basis of such specified chapter A of chapter 61 of such Code, as tion with such transfer). security of such issuer, amended by subsection (b)(3), is amended by

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inserting after the item relating to section bonds, involving the preservation or rehabili- ‘‘(A) IN GENERAL.—The Secretary shall 6045A the following new item: tation of the project. take actions to facilitate timely approval of ‘‘Sec. 6045B. Returns relating to actions af- (3) CHANGES.—The administrative and pro- requests to transfer ownership or control, for fecting basis of specified securi- cedural changes referred to in paragraph (1) the purpose of rehabilitation or preservation, ties.’’. shall include all actions necessary to carry of multifamily housing projects for which as- (e) EFFECTIVE DATE.— out paragraph (1), which may include— sistance is provided by the Secretary of Agri- (1) IN GENERAL.—Except as otherwise pro- (A) improving the efficiency of approval culture in conjunction with any low-income vided in this subsection, the amendments procedures; housing tax credits under section 42 of the made by this section shall take effect on (B) simplifying approval requirements, Internal Revenue Code of 1986 or tax-exempt January 1, 2010. (C) establishing time deadlines or target housing bonds. (2) EXTENSION OF PERIOD FOR STATEMENTS deadlines for required approvals; ‘‘(B) CONSULTATION.—The Secretary of Ag- SENT TO CUSTOMERS.—The amendments made (D) modifying division of approval author- riculture shall consult with the Commis- by subsection (a)(3) shall apply to state- ity between field and national offices; sioner of the Internal Revenue Service and ments required to be furnished after Decem- (E) improving outreach to project sponsors take such actions as are appropriate in con- ber 31, 2008. regarding information that is required to be junction with such consultation to simplify SEC. 742. DELAY IN APPLICATION OF WORLD- submitted for such approvals; the coordination of rules, regulations, forms WIDE ALLOCATION OF INTEREST. (F) requesting additional funding for in- (including applications forms for project (a) IN GENERAL.—Paragraphs (5)(D) and (6) creasing staff, if necessary; and transfers), and approval requirements multi- of section 864(f) are each amended by strik- (G) any other actions which would expedite family housing projects for which assistance ing ‘‘December 31, 2008’’ and inserting ‘‘De- approvals. is provided by the Secretary of Agriculture cember 31, 2009’’. Any such changes shall be made in a manner in conjunction with any low-income housing (b) TRANSITIONAL RULE.—Subsection (f) of that provides for full compliance with any tax credits under section 42 of the Internal section 864 is amended by adding at the end existing requirements under law or regula- Revenue Code of 1986 or tax-exempt housing the following new paragraph: tion that are designed to protect families re- bonds. ‘‘(7) TRANSITION.—In the case of the first ceiving public and assisted housing assist- ‘‘(C) EXISTING REQUIREMENTS.—Any actions taxable year to which this subsection ap- ance, including income targeting, rent, and taken pursuant to this paragraph shall be plies, the increase (if any) in the amount of fair housing provisions, and shall also com- taken in a manner that provides for full the interest expense allocable to sources ply with requirements regarding environ- compliance with any existing requirements within the United States by reason of the ap- mental review and protection and wages paid under law or regulation that are designed to plication of this subsection shall be 78 per- to laborers. protect families receiving Federal housing cent of the amount of such increase deter- (b) CONSULTATION.—The Secretary shall assistance, including income targeting, rent, mined without regard to this paragraph.’’. consult with the Commissioner of the Inter- and fair housing provisions, and shall also (c) EFFECTIVE DATE.—The amendments nal Revenue Service and take such actions comply with requirements regarding envi- made by this section shall apply to taxable as are appropriate in conjunction with such ronmental review and protection and wages years beginning after December 31, 2008. consultation to simplify the coordination of paid to laborers. SEC. 743. TIME FOR PAYMENT OF CORPORATE ES- rules, regulations, forms, and approval re- ‘‘(D) RECOMMENDATIONS.—In implementing TIMATED TAXES. quirements for multifamily housing projects the changes required under this paragraph, (a) REPEAL OF ADJUSTMENT FOR 2012.—Sub- projects for which assistance is provided by the Secretary shall solicit recommendations paragraph (B) of section 401(1) of the Tax In- such Department in conjunction with any regarding such changes from project owners crease Prevention and Reconciliation Act of low-income housing tax credits under section and sponsors, investors and stakeholders in 2005 is amended by striking the percentage 42 of the Internal Revenue Code of 1986 or housing tax credits, State and local housing contained therein and inserting ‘‘100 per- tax-exempt housing bonds. finance agencies, tenant advocates, and cent’’. (c) RECOMMENDATIONS.—In implementing other stakeholders in such projects.’’. (b) MODIFICATION OF ADJUSTMENT FOR the changes required under this section, the SEC. 754. USE OF FHA LOANS WITH HOUSING TAX 2013.—The percentage under subparagraph Secretary shall solicit recommendations re- CREDITS. (C) of section 401(1) of the Tax Increase Pre- garding such changes from project owners (a) SUBSIDY LAYERING REQUIREMENTS.— vention and Reconciliation Act of 2005 in ef- and sponsors, investors and stakeholders in housing tax credits, State and local housing Subsection (d) of section 102 of the Depart- fect on the date of the enactment of this Act ment of Housing and Urban Development Re- is increased by 13 percentage points. finance agencies, public housing agencies, tenant advocates, and other stakeholders in form Act of 1989 (42 U.S.C. 3545(d)) is amend- Subtitle D—Coordination of Federal Housing such projects. ed— Programs and Tax Incentives for Housing (d) REPORT.—Not later than the expiration (1) in the first sentence, by inserting after SEC. 751. SHORT TITLE. of the 9-month period beginning on the date ‘‘assistance within the jurisdiction of the De- This subtitle may be cited as the ‘‘Housing of the enactment of this Act, the Secretary partment’’ the following: ‘‘, as such term is Tax Credit Coordination Act of 2008’’. shall submit a report to the Committee on defined in subsection (m), except that for SEC. 752. APPROVALS BY DEPARTMENT OF HOUS- Financial Services of the House of Rep- purposes of this subsection such term shall ING AND URBAN DEVELOPMENT. resentatives and the Committee on Banking, not include any mortgage insurance provided (a) ADMINISTRATIVE AND PROCEDURAL Housing, and Urban Affairs of the Senate pursuant to title II of the National Housing CHANGES.— that— Act (12 U.S.C. 1707 et seq.)’’; and (1) IN GENERAL.—The Secretary of Housing (1) identifies the actions taken by the Sec- (2) in the second sentence, by inserting and Urban Development (in this section re- retary to comply with this section; ‘‘such’’ before ‘‘assistance’’. ferred to as the ‘‘Secretary’’) shall, not later (2) includes information regarding any re- (b) COST CERTIFICATION.—Section 227 of Na- than the expiration of the 6-month period be- sulting improvements in the expedited ap- tional Housing Act (12 U.S.C. 1715r) is ginning upon after the date of the enactment proval for multifamily housing projects; amended— of this Act, implement administrative and (3) identifies recommendations made pur- (1) in the matter preceding paragraph (a) procedural changes to expedite approval of suant to subsection (c); (relating to a definition of ‘‘new or rehabili- multifamily housing projects under the ju- (4) identifies actions taken by the Sec- tated multifamily housing’’)— risdiction of the Department of Housing and retary to implement the provisions in the (A) in the first sentence— Urban Development that meet the require- amendments made by sections 4 and 5 of this (i) by striking ‘‘Notwithstanding’’ and in- ments of the Secretary for such approvals. Act; and serting ‘‘Except as provided in subsection (b) (2) PROJECTS.—The multifamily housing (5) makes recommendations for any legis- and notwithstanding’’; and projects referred to in paragraph (1) shall in- lative changes that are needed to facilitate (ii) by redesignating clauses (a) and (b) as clude— prompt approval of assistance for such clauses (A) and (B), respectively; and (A) projects for which assistance is pro- projects. (B) by striking ‘‘As used in this section—’’; vided by such Department in conjunction SEC. 753. PROJECT APPROVALS BY RURAL HOUS- (2) in paragraph (c) (relating to a definition with any low-income housing tax credits ING SERVICE. of ‘‘actual cost’’)— under section 42 of the Internal Revenue Section 515(h) of the Housing Act of 1949 (42 (A) in clause (i), by redesignating clauses Code of 1986 or tax-exempt housing bonds; U.S.C. 1485) is amended— (1) and (2) as clauses (I) and (II), respectively; and (1) by inserting ‘‘(1) CONDITION.—’’ after and (B) existing public housing projects and as- ‘‘(h)’’; and (B) in clause (ii), by redesignating clauses sisted housing projects, for which approval of (2) by adding at the end the following new (1) and (2) as clauses (I) and (II), respectively; the Secretary is necessary for transactions, paragraphs: (3) by redesignating paragraphs (a), (b), and in conjunction with any such low-income ‘‘(2) ACTIONS TO EXPEDITE PROJECT APPROV- (c) as paragraphs (1), (2), and (3), respec- housing tax credits or tax-exempt housing ALS.— tively;

VerDate Mar 15 2010 15:08 Nov 08, 2010 Jkt 069102 PO 00000 Frm 00091 Fmt 0688 Sfmt 0634 E:\BR08\H08MY8.003 H08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD May 8, 2008 CONGRESSIONAL RECORD—HOUSE, Vol. 154, Pt. 6 8235 (4) by inserting before paragraph (1) (as so Revenue Code of 1986. The Secretary shall sistance payments contract covering the redesignated by paragraph (3) of this sub- issue instructions for implementing the pilot unit’’; and section) the following: program under this subsection not later than (F) by adding at the end the following new ‘‘(b) EXEMPTION FOR CERTAIN PROJECTS AS- the expiration of the 180-day period begin- subparagraphs: SISTED WITH LOW-INCOME HOUSING TAX CRED- ning upon the date of the enactment of the ‘‘(L) USE IN COOPERATIVE HOUSING AND ELE- IT.—In the case of any mortgage insured Housing Tax Credit Coordination Act of 2008. VATOR BUILDINGS.—A public housing agency under any provision of this title that is exe- ‘‘(2) REQUIREMENTS.—Such pilot program may enter into a housing assistance pay- cuted in connection with the construction, shall provide for— ments contract under this paragraph with rehabilitation, purchase, or refinancing of a ‘‘(A) the Secretary to appoint designated respect to— multifamily housing project for which eq- underwriters, who shall be responsible for re- ‘‘(i) dwelling units in cooperative housing; uity provided through any low-income hous- viewing such mortgage insurance applica- and ing tax credit pursuant to Section 42 of the tions and making determinations regarding ‘‘(ii) notwithstanding subsection (c), dwell- Internal Revenue Code of 1986 (26 U.S.C. 42), the eligibility of such applications for such ing units in a high-rise elevator project, in- if the Secretary determines at the time of mortgage insurance in lieu of the processing cluding such a project that is occupied by issuance of the firm commitment for insur- functions regarding such applications that families with children, without review and ance that the ratio of the loan proceeds to are otherwise performed by other employees approval of the contract by the Secretary. the actual cost of the project is less than 80 of the Department of Housing and Urban De- ‘‘(M) REVIEWS.— percent, subsection (a) of this section shall velopment; ‘‘(i) SUBSIDY LAYERING.—A subsidy layering not apply. ‘‘(B) submission of applications for such review in accordance with section 102(d) of ‘‘(c) DEFINITIONS.—For purposes of this sec- mortgage insurance by mortgagees who have the Department of Housing and Urban Devel- tion, the following definitions shall apply:’’; previously been expressly approved by the opment Reform Act of 1989 (42 U.S.C. 3545(d)) and Secretary; and shall not be required for assistance under (5) by inserting ‘‘(a) REQUIREMENT.—’’ after ‘‘(C) determinations regarding the eligi- this paragraph in the case of a housing as- ‘‘227.’’. bility of such applications for such mortgage sistance payments contract for an existing (c) OTHER PROVISIONS REGARDING TREAT- insurance to be made by the chief under- structure, or if a subsidy layering review has MENT OF MORTGAGES COVERING TAX CREDIT writer pursuant to requirements prescribed been conducted by the applicable State or PROJECTS.—Title II of the National Housing by the Secretary, which shall include requir- local agency. Act is amended by inserting after section 227 ing submission of reports regarding applica- ‘‘(ii) ENVIRONMENTAL REVIEW.—A public (12 U.S.C. 1715r) the following new section: tions of proposed mortgagees by third-party housing agency shall not be required to un- ‘‘SEC. 228. TREATMENT OF MORTGAGES COV- entities expressly approved by the chief un- dertake any environmental review before en- ERING TAX CREDIT PROJECTS. derwriter.’’. tering into a housing assistance payments ‘‘(a) DEFINITION.—For purposes of this sec- SEC. 755. OTHER HUD PROGRAMS. contract under this paragraph for an existing tion, the term ‘insured mortgage covering a (a) SECTION 8 ASSISTANCE.— structure, except to the extent such a review tax credit project’ means a mortgage insured (1) PHA PROJECT-BASED ASSISTANCE.—Sec- is otherwise required by law or regulation.’’. under any provision of this title that is exe- tion 8(o)(13) of the United States Housing (2) VOUCHER PROGRAM RENT REASONABLE- cuted in connection with the construction, Act of 1937 (42 U.S.C. 1437f(o)(13)) is amend- NESS.—Section 8(o)(10) of the United States rehabilitation, purchase, or refinancing of a ed— Housing Act of 1937 (42 U.S.C. 1437f(o)(10)) is multifamily housing project for which eq- (A) in subparagraph (D)(i)— amended by adding at the end the following uity provided through any low-income hous- (i) by striking ‘‘building’’ and inserting new subparagraph; ing tax credit pursuant to section 42 of the ‘‘project’’; and ‘‘(F) TAX CREDIT PROJECTS.—In the case of Internal Revenue Code of 1986 (26 U.S.C. 42). (ii) by adding at the end the following: a dwelling unit receiving tax credits pursu- ‘‘(b) ACCEPTANCE OF LETTERS OF CREDIT.— ‘‘For purposes of this subparagraph, the term ant to section 42 of the Internal Revenue In the case of an insured mortgage covering ‘project’ means a single building, multiple Code of 1986 or for which assistance is pro- a tax credit project, the Secretary may not contiguous buildings, or multiple buildings vided under subtitle A of title II of the Cran- require the escrowing of equity provided by on contiguous parcels of land.’’; ston Gonzalez National Affordable Housing the sale of any low-income housing tax cred- (B) in the first sentence of subparagraph Act of 1990, for which a housing assistance its for the project pursuant to Section 42 of (F), by striking ‘‘10 years’’ and inserting ‘‘15 contract not subject to paragraph (13) of this the Internal Revenue Code of 1986, or any years’’; subsection is established, rent reasonable- other form of security, such as a letter of (C) In subparagraph (G)— ness shall be determined as otherwise pro- credit. (i) by inserting after the period at the end vided by this paragraph, except that— ‘‘(c) ASSET MANAGEMENT REQUIREMENTS.— of the first sentence the following: ‘‘Such ‘‘(i) comparison with rent for units in the In the case of an insured mortgage covering contract may, at the election of the public private, unassisted local market shall not be a tax credit project for which project the ap- housing agency and the owner of the struc- required if the rent is equal to or less than plicable tax credit allocating agency is caus- ture, specify that such contract shall be ex- the rent for other comparable units receiving ing to be performed periodic inspections in tended for renewal terms of up to 15 years such tax credits or assistance in the project compliance with the requirements of section each, if the agency makes the determination that are not occupied by families assisted 42 of the Internal Revenue Code of 1986, such required by this subparagraph and the owner with tenant-based assistance under this sub- project shall be exempt from requirements is in compliance with the terms of the con- section; and imposed by the Secretary regarding periodic tract.’’; and ‘‘(ii) the rent shall not be considered rea- inspections of the property by the mort- (ii) by adding at the end the following: ‘‘A sonable for purposes of this paragraph if it gagee. To the extent that other compliance public housing agency may agree to enter exceeds the greater of— monitoring is being performed with respect into such a contract at the time it enters ‘‘(I) the rents charged for other comparable to such a project by such an allocating agen- into the initial agreement for a housing as- units receiving such tax credits or assistance cy pursuant to such section 42, the Secretary sistance payment contract or at any time in the project that are not occupied by fami- shall, to the extent that the Secretary deter- thereafter that is before the expiration of lies assisted with tenant-based assistance mines such monitoring is sufficient to ensure the housing assistance payment contract.’’; under this subsection; and compliance with any requirements estab- (D) in subparagraph (H), by inserting be- ‘‘(II) the payment standard established by lished by the Secretary, accept such agency’s fore the period at the end of the first sen- the public housing agency for a unit of the evidence of compliance for purposes of deter- tence the following: ‘‘, except that in the size involved.’’. mining compliance with the Secretary’s re- case of a contract unit that has been allo- (b) SECTION 202 HOUSING FOR ELDERLY PER- quirements. cated low-income housing tax credits and for SONS.—Subsection (f) of section 202 of the ‘‘(d) STREAMLINED PROCESSING PILOT PRO- which the rent limitation pursuant to such Housing Act of 1959 (12 U.S.C. 1701q(f)) is GRAM.— section 42 is less than the amount that would amended— ‘‘(1) IN GENERAL.—The Secretary shall es- otherwise be permitted under this subpara- tablish a pilot program to demonstrate the graph, the rent for such unit may, in the sole (1) by striking ‘‘SELECTION CRITERIA.—’’ effectiveness of streamlining the review discretion of a public housing agency, be es- and inserting ‘‘INITIAL SELECTION CRITERIA process, which shall include all applications tablished at the higher section 8 rent, sub- AND PROCESSING.—(1) SELECTION CRITERIA.— for mortgage insurance under any provision ject only to paragraph (10)(A)’’; ’’; of this title for mortgages executed in con- (E) in subparagraph (I)(i), by inserting be- (2) by redesignating paragraphs (1) through nection with the construction, rehabilita- fore the semicolon the following: ‘‘, except (7) as subparagraphs (A) through (G), respec- tion, purchase, or refinancing of a multi- that the contract may provide that the max- tively; and family housing project for which equity pro- imum rent permitted for a dwelling unit (3) by adding at the end the following new vided through any low-income housing tax shall not be less than the initial rent for the paragraph: credit pursuant to section 42 of the Internal dwelling unit under the initial housing as- ‘‘(2) DELEGATED PROCESSING.—

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OR SEIZURE OF PROPERTY OWNED under subsection (c)(1) and sources other 11405a(a)) is amended by inserting before the BY SERVICEMEMBERS DURING ONE- than this section, within 30 days of award of period at the end the following: ‘‘; except YEAR PERIOD FOLLOWING PERIOD the capital advance, the Secretary shall del- that, in the case of any project for which eq- OF MILITARY SERVICE. egate review and processing of such projects uity is provided through any low-income (a) LIMITATION.—Section 303(c) of the to a State or local housing agency that— housing tax credit pursuant to section 42 of Servicemembers Civil Relief Act is amended ‘‘(i) is in geographic proximity to the prop- the Internal Revenue Code of 1986 (26 U.S.C. by striking ‘‘90 days’’ and inserting ‘‘one erty; 42), if an expenditure of such amount for year’’. ‘‘(ii) has demonstrated experience in and each unit (including the prorated share of (b) EFFECTIVE DATE.—The amendment capacity for underwriting multifamily hous- such work) is required to make the structure made by subsection (a) shall apply with re- ing loans that provide housing and sup- decent, safe, and sanitary, and the owner spect to any sale, foreclosure, or seizure of portive services; agrees to reach initial closing on permanent property on or after the date of the enact- ‘‘(iii) may or may not be providing low-in- financing from such other sources within ment of this Act. come housing tax credits in combination two years and agrees to carry out the reha- SEC. 762. PROVISION OF FINANCIAL DISCLOSURE with the capital advance under this section, bilitation with resources other than assist- TO SERVICEMEMBERS WHO DE- and ance under this subtitle within 60 months of FAULT ON CERTAIN OBLIGATIONS. ‘‘(iv) agrees to issue a firm commitment notification of grant approval, the contract (a) PROVISION OF DISCLOSURE REQUIRED.— within 12 months of delegation. shall be for a term of 10 years (except that Section 303 of the Servicemembers Civil Re- ‘‘(B) The Secretary shall retain the author- such period may be extended by up to 1 year lief Act (50 U.S.C. App. 533) is amended by ity to process capital advances in cases in by the Secretary, which extension shall be adding at the end the following new sub- which no State or local housing agency has granted unless the Secretary determines section: applied to provide delegated processing pur- that the sponsor is primarily responsible for ‘‘(e) PROVISION OF FINANCIAL DISCLOSURE.— suant to this paragraph or no such agency the failure to meet such deadline)’’. In the case of a servicemember who defaults has entered into an agreement with the Sec- on an obligation described in subsection (a) (d) DATA COLLECTION ON TENANTS OF HOUS- retary to serve as a delegated processing for two consecutive months, the mortgagor ING TAX CREDIT PROJECTS.—Title I of the agency. or loan servicer of the obligation shall pro- United States Housing Act of 1937 (42 U.S.C. ‘‘(C) An agency to which review and proc- vide to the servicemember a written finan- 1437 et seq.) is amended by adding at the end essing is delegated pursuant to subparagraph cial disclosure describing the (A) may assess a reasonable fee which shall the following new section: servicemember’s liability with respect to the be included in the capital advance amounts ‘‘SEC. 36. COLLECTION OF INFORMATION ON TEN- obligation for the period during which a sale, and may recommend project rental assist- ANTS IN TAX CREDIT PROJECTS. foreclosure, or seizure of the property is not ance amounts in excess of those initially valid under subsection (c).’’. ‘‘(a) IN GENERAL.—Each State agency ad- awarded by the Secretary. The Secretary (b) EFFECTIVE DATE.—Subsection (e) of sec- ministering tax credits under section 42 of shall develop a schedule for reasonable fees tion 303 of the Servicemembers Civil Relief under this subparagraph to be paid to dele- the Internal Revenue Code of 1986 (26 U.S.C. Act (50 U.S.C. App. 533), as added by sub- gated processing agencies, which shall take 42) shall furnish to the Secretary of Housing section (a), shall apply with respect to a into consideration any other fees to be paid and Urban Development, not less than annu- servicemember who defaults on an obligation to the agency for other funding provided to ally, information concerning the race, eth- on or after the date of the enactment of this the project by the agency, including bonds, nicity, family composition, age, income, use Act. of rental assistance under section 8(o) of the tax credits, and other gap funding. The text of House amendment No. 3 United States Housing Act of 1937 or other ‘‘(D) Under such delegated system, the Sec- to the Senate amendment is as follows: retary shall retain the authority to approve similar assistance, disability status, and rents and development costs and to execute monthly rental payments of households re- At the end of the matter proposed to be in- a capital advance within 60 days of receipt of siding in each property receiving such cred- serted by the amendment of the Senate to the commitment from the State or local its through such agency. Such State agen- the text of the bill, add the following new agency. The Secretary shall provide to such cies shall, to the extent feasible, collect such section: agency and the project sponsor, in writing, information through existing reporting proc- SEC. ll. RULE OF CONSTRUCTION. the reasons for any reduction in capital ad- esses and in a manner that minimizes bur- (a) IN GENERAL.—No provision of this Act, vance amounts or project rental assistance dens on property owners. In the case of any the Home Owners’ Loan Act, or title LXII of and such reductions shall be subject to ap- household that continues to reside in the the Revised Statutes of the United States peal.’’. same dwelling unit, information provided by (commonly referred to as the ‘‘National (c) MCKINNEY-VENTO ACT HOMELESS AS- the household in a previous year may be used Bank Act’’) may be construed as preempting SISTANCE UNDER SHELTER PLUS CARE PRO- if the information is of a category that is not the application, to any entity, of any State GRAM.— subject to change or if information for the law regulating the foreclosure of residential (1) TERM OF CONTRACTS WITH OWNER OR LES- current year is not readily available to the real property in that State or the treatment SOR.—Part I of subtitle F of the McKinney- owner of the property. of foreclosed property. Vento Homeless Assistance Act is amended— (b) NO NEGATIVE IMPLICATION.—This sec- (A) by redesignating sections 462 and 463 (42 ‘‘(b) STANDARDS.—The Secretary shall es- tion shall not be construed as affecting in U.S.C. 11403g, 11403h) as sections 463 and 464, tablish standards and definitions for the in- any way the applicability of any other type respectively; formation collected under subsection (a), of State law to any Federal depository insti- (B) by striking ‘‘section 463’’ each place provide States with technical assistance in tution (as defined in section 3(c)(4) of the such term appears in sections 471, 476, 481, establishing systems to compile and submit Federal Deposit Insurance Act) or to any 486, and 488 (42 U.S.C. 11404, 11405, 11406, 11407, such information, and, in coordination with agent or subsidiary of any such depository and 11407b) and inserting ‘‘section 464’’; and other Federal agencies administering hous- institution. (C) by inserting after section 461 (42 U.S.C. ing programs, establish procedures to mini- The SPEAKER pro tempore. Pursu- 11403f) the following new section: mize duplicative reporting requirements for ant to House Resolution 1175, debate ‘‘SEC. 462. TERM OF CONTRACT WITH OWNER OR properties assisted under multiple housing LESSOR. programs. shall not exceed 3 hours, with 2 hours ‘‘An applicant under this subtitle may equally divided and controlled by the ‘‘(c) PUBLIC AVAILABILITY.—The Secretary chairman and ranking minority mem- enter into a contract with the owner or les- shall, not less than annually, compile and sor of a property that receives rental assist- make publicly available the information sub- ber of the Committee on Financial ance under this subtitle having a term of not mitted to the Secretary pursuant to sub- Services, and 1 hour equally divided more than 15 years, subject to the avail- section (a). and controlled by the chairman and ability of sufficient funds provided in appro- ranking minority member of the Com- ‘‘(d) AUTHORIZATION OF APPROPRIATIONS.— priation Acts for the purpose of renewing ex- mittee on Ways and Means. piring contracts for assistance payments. There is authorized to be appropriated for Such contract may, at the election of the ap- the cost of activities required under sub- The gentleman from Massachusetts plicant and owner or lessor, specify that sections (b) and (c) $2,500,000 for fiscal year (Mr. FRANK) and the gentleman from such contract shall be extended for renewal 2009 and $900,000 for each of fiscal years 2010 Alabama (Mr. BACHUS) each will con- terms of not more than 15 years each, sub- through 2013.’’. trol 1 hour; and the gentleman from

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Massachusetts (Mr. NEAL) and the gen- ghanistan and/or in Iraq, that a serv- suggested by the President, is certainly tleman from Louisiana (Mr. MCCRERY) icemember who is doing all that’s worth doing. And although I have some each will control 30 minutes. asked of him or her every day would reservations about the design of the The Chair recognizes the gentleman find themselves facing mortgage fore- first-time homebuyer’s tax credit, the from Massachusetts (Mr. NEAL). closure because of their military serv- recapture provision, if we include it, Mr. NEAL of Massachusetts. Mr. ice. makes it more like a no-interest loan Speaker, I yield myself such time as I As chairman of the Select Revenue and not really a tax credit. might consume. Measures Subcommittee, again I stand Still, I share the hope of the sponsors Mr. Speaker, I want to begin by in strong support of the legislation that this provision will help induce thanking Mr. FRANK. In the 30 years that’s before us today. It includes a some home purchases this year and that I’ve known him, I’ve yet to meet number of improvements to the afford- stabilize the market. We desire that be- anybody who has done a better job of able housing program. cause we recognize that potential mastering the most arcane detail of Our subcommittee considered these homebuyers right now are reading the complicated housing policy. In fact, in provisions last summer. And at the headlines every day, they’re waiting on some measure, we’re here today be- urging of housing officials, developers, the sidelines to get to the bottom of cause of the energy that he’s brought and advocates for low-income families, the market. Well, as prices keep fall- to the task at hand. they have all been included in the ing, more people who might think Mr. Speaker, I also rise today in sup- Ways and Means amendment that we about buying a home decide to keep port of this housing assistance tax consider today. I urge its adoption. waiting, and so that creates a self-per- package which has been reported by Mr. Speaker, I reserve the balance of petuating cycle of declining home the Ways and Means Committee. I my time. prices. Maybe, just maybe, this tax want to thank Chairman RANGEL for Mr. MCCRERY. Mr. Speaker, I yield credit could induce some of those wait- his leadership on this very important myself so much time as I may con- ing on the sidelines to go ahead, jump national issue. sume. in and buy a home. That’s our desire. I There is little doubt that the sagging Mr. Speaker, it is with regret that I think it could have been better, as I housing industry, now at historic lows, rise to urge my colleagues to vote say, designed as a pure tax credit with has been a drag on our national econ- against the tax amendment to this bill. no recapture provision, but still, I omy. This legislation would stimulate Let me be clear, however, in stating think it’s better than nothing. I understand the concern raised by that industry and help families who that my opposition to this section is some that an artificial temporary have been caught up in this struggling not the result of a disagreement with floor, so to speak, will not restore long- economy. my friend, Mr. NEAL, or with the chair- term stability to the housing market This legislation provides tax credits man of the committee, Mr. RANGEL. We and could even result in further price for first-time homebuyers, and it were able to work together so that the declines when the temporary benefit boosts credits for construction of af- housing bill reported by the Ways and lapses. But on balance, I think this fordable housing. It allows families to Means Committee enjoyed bipartisan provision holds some hope of helping us deduct property taxes who couldn’t do support. to reverse this slide in housing prices, so before. And while that package contains many provisions that do make sense, I or at least stop it for a while and give b 1230 think the House should have had the it a chance to recover. At the same time, there are elements It increases mortgage revenue bonds opportunity to consider at least one al- of this package that, frankly, I would and it allows the States to refinance ternative. Unfortunately, the proce- prefer not be in here. Given the nature troubled subprime loans. dural straitjacket imposed by the ma- of the housing crisis, I think the House This assistance is targeted to those jority for consideration of the housing should follow the Senate’s lead and who need it most. It will also help bill today is something that I simply waive PAYGO, for example. I think bring economic stability to our com- cannot ignore. For that reason, I will this is an emergency. We shouldn’t be munities. And these provisions are rev- be voting against this amendment. responding to this emergency situation enue neutral, I emphasize ‘‘revenue We all understand the severity of the with tax increases. neutral,’’ using a provision from the housing crisis. Housing starts declined And there are specific items in here President’s own budget to pay for to 680,000 in March of 2008, the lowest that if it were up to me might not have much of the cost. level since January of 1991. Since hit- made the cut. But democracy is about Mr. Speaker, this bill has been en- ting a peak in early 2006, housing starts compromise, and the bill produced by dorsed by the Home Builders, the Real- have dropped by 62 percent. There is the Ways and Means Committee was 1 tors and State Housing Administra- currently a 9 ⁄2 month supply of unsold something that I supported and would tors. It passed with the support of 12 homes, more than double the 10-year like to vote for again here on the Republican members of the Ways and average. With those facts in mind, it is House floor today. But the decision Means Committee, including my friend not surprising that home prices are made by the majority leadership to de- and the distinguished ranking member, falling, and the contraction in the resi- bate this legislation as an amendment Mr. MCCRERY. It is broadly supported, dential real estate market is an anchor to a Senate-passed bill deprives the it’s bipartisan in nature, and I am around our economy. House of the chance to consider ways proud to bring it to this House today. The Tax Code didn’t get us into this to improve it, even to the extent of de- There are but two changes to our mess, and there is only so much the nying the minority a motion to recom- amendment. One is a package of tech- Tax Code can do to get us out. The mit. nical improvements from the Financial package approved by the Committee on Now, I recognize that tax bills tradi- Services Committee to better coordi- Ways and Means contains many well- tionally come to the floor under re- nate the various housing tax and HUD designed improvements, including im- strictive rules, and I support that. But programs. The other is—and I hope provements to make the low-income as I documented in a letter last year to that everybody will listen to this sug- housing tax credit more efficient. I the distinguished chairwoman of the gestion—a provision approved by the also think allowing those credits to be Rules Committee, in years when Re- Veterans Affairs Committee to extend claimed against both the regular tax publicans were in the majority, on one from 90 days to 1 year the protection and the AMT is a step in the right di- tax bill after another the Republican against foreclosure for servicemembers rection. majority offered the Democratic mi- returning from active duty. I can’t The language expanding the Mort- nority not only a motion to recommit, imagine that there is a voice in this gage Revenue Bond program and allow- but a substitute. body who would not be supportive of ing proceeds of the bonds to be used to Mr. Speaker, at this time, I would that initiative, the idea that in Af- refinance existing home mortgages, as like to insert the text of that letter to

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In With that, I would like to yield 2 Chairwoman LOUISE MCINTOSH SLAUGHTER, many of these cases, the amendment was ei- minutes to the gentleman from Michi- Committee on Rules, House of Representatives, ther non-germane to the underlying bill, was gan (Mr. LEVIN). The Capitol, Washington, DC. not an actual substitute amendment, or was Mr. LEVIN. I rise in strong support. Ranking Member DAVID DREIER, not compliant with the Budget Act. There has been some bipartisanship Committee on Rules, House of Representatives, I have submitted an amendment in the na- Longworth Building, Washington, DC. that has motored this legislation, and I ture of a substitute to H. R. 2776. According hope it won’t break down today. DEAR CHAIRWOMAN SLAUGHTER AND RANK- to the Joint Committee on Taxation, the ING MEMBER DREIER: This week the House is amendment complies with Clause 10 of House The crisis in housing needs the atten- expected to consider H.R. 2776, the ‘‘Renew- Rule 21, otherwise known as the ‘‘paygo tion and the support of everybody. It able Energy and Energy Conservation Act of rule.’’ In addition, through consultations needs much more than tea and sym- 2007.’’ This will be the first tax bill, reported with the Office of the Parliamentarian, I am pathy, it needs legislation. Recently I by the Ways and Means Committee, to be assured that the amendment is germane to met with mayors and managers from considered under a rule in the 110th Con- H.R. 2776. To my knowledge, it would violate the 12th District, in Macomb County gress. As you are aware, the House has a long no rules of the House. history of supporting rules for tax bills and southeast Oakland. And they all I hope that the Committee will make in talked about the plight of the home- which make in order an amendment in the order my amendment as part of the consider- nature of a substitute. Numerous examples, ation of H.R. 2776. Please do not hesitate to owner, the plight of the communities dating back to the 104th Congress, include: contact me if you have any questions. when houses are shut down. We have to 1. Death Tax Repeal Permanency Act of With kindest regards, I am act. And I pay tribute, all of us should, 2005; Sincerely yours, to the Committee on Financial Serv- 2. Tax Increase Prevention and Reconcili- JIM MCCRERY, ices. ation Act of 2005; Ranking Member. And let me say just a word about the 3. Charitable Giving Act of 2003; 4. Death Tax Repeal Permanency Act of At the same time, I recognize that it tax provisions. They would provide 2003; is not uncommon to resolve differences credit to first-time homebuyers. Essen- 5. Social Security Protection Act of 2003; between the House and the Senate by tial. It would improve access to low-in- 6. Pension Security Act of 2003; sending amendments back and forth come housing. Essential. It would 7. Tax Administration Good Government across the Capitol. That’s what’s being allow families to deduct property taxes Act; done today. But what makes today’s through the standard deduction. It’s a 8. A bill to extend permanently the mar- procedure so unusual, and to some of good experiment. It should have been riage penalty relief provided under the Eco- nomic Growth and Tax Relief Reconciliation us so frustrating, is that this House done earlier. And it also would allow Act of 2001; never had a chance to work its will on Federal home loan banks to help re- 9. Middle-Class Alternative Minimum Tax housing legislation. This is not a hous- lieve pressure on credit markets. Relief Act of 2004: ing bill that went to the Senate, was I read the Statement of Administra- 10. A bill to permanently extend the ten amended, and then sent back to us. tive Policy that said it was risky and it percent individual income tax bracket; This was an energy bill for heaven’s was an expansion of the purpose of the 11. Child Credit Preservation and Expan- sake. It was gutted in the Senate, re- banks, and I think it’s incorrect in sion Act of 2004; 12. Economic Growth and Tax Relief Act of placed with housing provisions, sent both respects. So I just want to close 2001; back to us, and that is what has cre- with the sense of urgency that I think 13. Marriage Penalty and Family Tax Re- ated this unusual opportunity for the all of us feel. Mr. Bernanke said that if lief Act of 2001; majority to deny the minority even a markets were simply allowed to follow 14. Care Act of 2002; motion to recommit, and it’s wrong. their own course, it could ‘‘destabilize 15. Death Tax Elimination Act of 2001; So Mr. Speaker, I think that action communities, reduce the property val- 16. Economic Growth and Tax Relief Rec- reflects poorly on this House. It’s a ues of nearby homes and lower munic- onciliation Act of 2001; 17. Permanent Death Tax Repeal Act of trampling of the rights of all of our ipal tax revenues.’’ 2002; Members, not just the minority. And I, What more do we need to impel us to 18. Job Creation and Worker Assistance therefore, plan to vote against all of act than the flight of families, the Act of 2002; these amendments and urge my col- plight of communities, and the plight 19. Pension Security Act of 2002; leagues to do the same until we can get of municipalities? Let’s vote on a bi- 20. The WORK Act of 2002; a fair hearing, a fair rule governing the partisan bill. Let’s vote for this bill. 21. Retirement Savings Security Act of debate of these very important mat- Mr. REYNOLDS. Mr. Speaker, it is 2002; ters. now my pleasure to yield 3 minutes to 22. Marriage Tax Penalty Relief Act of 2000; With that, Mr. Speaker, I reserve the the distinguished senior member of the 23. Death Tax Elimination Act of 2000; balance of my time. Republican side of Ways and Means, 24. Retirement Security and Savings Act of Mr. Speaker, I ask unanimous con- WALLY HERGER of California. 2000; sent at this time to allow the gen- Mr. HERGER. Mr. Speaker, I’m trou- 25. Foster Care Independence Act of 1999; tleman from New York (Mr. REY- bled by the housing catch-all bill be- 26. Financial Freedom Act of 1999; NOLDS), a member of the Ways and fore the House of Representatives 27. Fathers Count Act of 1999; Means Committee, to control the re- today from a commonsense, pro-Amer- 28. Marriage Tax Relief Reconciliation Act mainder of time. ican taxpayer position. of 2000; 29. Social Security Benefits Tax Relief Act The SPEAKER pro tempore. Is there The bill would enable the already of 2000; objection to the request of the gen- troubled FHA to take on an additional 30. Education Savings and School Excel- tleman from Louisiana? $300 million in distressed mortgage li- lence Act of 1998; There was no objection. abilities, loans that have a good chance 31. Taxpayer Relief Act of 1998; Mr. NEAL of Massachusetts. Mr. of going into default. This effectively 32. Job Creation and Wage Enhancement Speaker, I do offer some acknowledge- transfers risk from those holding bad Act of 1995; ment of the constraints that we find loans to those taxpayers who made 33. A bill to permanently extend the deduc- ourselves within today on the House prudent decisions in the first place. tion for the health insurance costs of self- employed individuals, and for other pur- floor, and I think there’s some accu- More than nine out of 10 mortgage poses; racy as to what Mr. MCCRERY had to holders make payments on time. They 34. Tax Fairness and Deficit Reduction Act say. However, there is another very im- would now be on the hook for the bad of 1995; and, portant point, and that is, that the mortgage debt, as will renters saving

VerDate Mar 15 2010 15:08 Nov 08, 2010 Jkt 069102 PO 00000 Frm 00095 Fmt 0688 Sfmt 0634 E:\BR08\H08MY8.004 H08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD May 8, 2008 CONGRESSIONAL RECORD—HOUSE, Vol. 154, Pt. 6 8239 for a first-time home and those who benefit that is equivalent to an inter- tional funds to help at-risk borrowers own their own homes outright. This est-free loan of $7,000 towards the pur- refinance their subprime loans, access bill sends the signal that there are no chase of their first home. It will also mortgages at fair rates, and enable real consequences for poor lending or allow existing homeowners who claim families to meet their financial obliga- borrowing practices, and encourages the standard deduction to an addi- tions and stay in their homes. This more of the same behavior that led us tional standard deduction for property provision will work hand in hand with here in the first place. taxes, up to $700 for a married couple the Federal Housing Agency reforms Further, to offset some of the tax filing jointly. that have come out of Chairman giveaways in the bill, the Democrat When we first addressed this issue in FRANK’s committee and will allow majority proposes billions of dollars in the Ways and Means Committee, the States to play a role in addressing the what amounts to a retroactive tax in- National Association of Realtors found needs of their local communities. crease on American employers with op- that our legislation would generate As Federal Reserve Chairman Ben erations in foreign markets. What our about 1 million sales—— Bernanke put it, ‘‘ . . . doing what we economy really needs is tax policies The SPEAKER pro tempore. The gen- can to avoid preventable foreclosures is that foster greater, not less, competi- tleman’s time has expired. not just in the interest of lenders and tiveness for the U.S. employers. Mr. NEAL of Massachusetts. Mr. borrowers, it is in everyone’s interest.’’ Finally, it is truly disappointing that Speaker, I yield the gentleman an addi- It is in everyone’s interest that we the Democrat majority has chosen to tional 30 seconds. overcome this crisis in the housing bring this bill up in a lock down, Mr. PASCRELL. The National Asso- unamendable manner. I urge my col- market, that we work to stabilize the ciation of Realtors found that our leg- economy, and we work to maintain and leagues to reject this measure. islation would generate about 1 million Mr. NEAL of Massachusetts. Mr. build our competitive edge in the glob- sales to first-time homebuyers and al economy. The proposal before us is a Speaker, I would remind the audience, stimulate nearly $130 billion in in- including the Members that are on the comprehensive approach to this chal- creased economic activity. You tell me lenge, and I hope that it will be sup- floor, that this procedure was fully vet- that that’s not worth it in this econ- ted in the Ways and Means Committee. ported by all. omy. Mr. REYNOLDS. Mr. Speaker, I yield It passed 35–5. That means we picked Studies have shown that this will myself such time as I may consume. up 12 members of the minority who help reduce housing inventory by supported this legislation. 900,000 homes, which will, in turn, sta- Mr. Speaker, as the debate continues With that, I would like to yield 2 bilize prices. from the Ways and Means portion of minutes to my friend, the distin- This is a wise and necessary course the housing bill, I believe the ranking guished gentleman from New Jersey to take. Because of this we also salute member has set very clear remarks on (Mr. PASCRELL). where many of us find ourselves with Chairman RANGEL’s leadership. I hope Mr. PASCRELL. Mr. Speaker, you all my colleagues will enthusiastically this debate today. can’t have it both ways. You can’t say support this proposal. It’s good for Chairman RANGEL and Ranking Mem- that this is an emergency and we’ve America. ber MCCRERY have a superb working re- got to get something done, and then in Mr. REYNOLDS. Mr. Speaker, I re- lationship, and they have set the tenor the other breath say let’s go through serve the balance of my time. of what has been hard work on both the technical procedures. They’re con- Mr. NEAL of Massachusetts. Mr. sides of the aisle and bipartisan com- tradictory. Speaker, at this time I would like to promise and consensus to craft some This bill was vetted. And housing in- yield to the gentlewoman from Penn- good legislation that has passed this ventories in our communities continue sylvania (Ms. SCHWARTZ) for 2 minutes. body and has become law. And as I to increase and home prices continue Ms. SCHWARTZ. Mr. Speaker, I want manage this portion for the minority to decline. We need to incentivize to thank Chairman RANGEL and Chair- and look across to my colleague from Americans to reenter the housing mar- man FRANK for acting so swiftly and Massachusetts, he and I also share in ket. It affects so much of our economy. wisely to stem the tide of foreclosures commonsense solutions to strengthen I think this amendment, this bill takes and address the sagging home values America and to resolve some of the giant leaps towards accomplishing this that are hurting families and commu- problems and challenges that are there. goal. I applaud Mr. RANGEL for his ef- nities across our Nation. And this bill is not an exception to forts and the 12 Members from the dis- By addressing a whole range of that. We worked at the spirit of re- tinguished opposition who joined. issues, from the continuing foreclosure quest of both the Chair and ranking There is an array of good work here, member to reach compromise and con- but in particular I’m heartened that in- crisis to the new and existing homes that are sitting vacant and further de- sensus to improve the Ways and Means cluded within is a tax benefit for most jurisdiction on housing. first-time homebuyers. This is a truly pressing the housing market, this And I look at it with sadness in two meaningful incentive, and one that will package represents a significant step parts. One, as a realtor who looks at pull out a large swath of people from toward stabilizing the economy and re- the industry, knowing across the coun- the sidelines and back into the market, storing consumer confidence. try that we face challenges, and the having a ripple effect throughout the I am very proud of the portion of this statistics that Ranking Member rest of the economy. After all, without package that came through the Com- MCCRERY outlined, 680,000 fewer starts, bold action to spur housing market ac- mittee on Ways and Means, particu- a reduction in high percentages of what tivity, inventories across the country larly a timely, targeted, and well-de- the industry is about, seeing what the may continue to grow, placing down- signed first-time homebuyers credit; a drag has been on our country’s growth. ward pressure on home prices and wip- new Federal tax deduction to help fam- And we need to work through good, ing out equity that so many Americans ilies meet rising State property taxes; solid solutions that need a hearing have worked so hard to build. and expansion of the ability of cities and States to raise capital for infra- process that involve the Congress, par- b 1245 structure improvements by partnering ticularly this body, in a debate of solu- We don’t want more homes to be in with the Federal Home Loan Banks. tion. that situation. We prove nothing. In particular, I am pleased that the And when we look at the entire com- There is a place for the Federal Gov- package includes a provision that I plexity of this bill, not only as a Ways ernment, therefore, in this terrible sit- championed, along with my Republican and Means member, not only as some- uation that has occurred and developed colleague JON PORTER, which would en- one who understands the housing over the last year. able State housing finance agencies to world, but also as a former member of This bill, when passed, will allow raise capital through tax-exempt mort- the Rules Committee, I know that the middle class families to receive a tax gage revenue bonds and use these addi- Members of this body were trampled on

VerDate Mar 15 2010 15:08 Nov 08, 2010 Jkt 069102 PO 00000 Frm 00096 Fmt 0688 Sfmt 0634 E:\BR08\H08MY8.004 H08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD 8240 CONGRESSIONAL RECORD—HOUSE, Vol. 154, Pt. 6 May 8, 2008 based on the decision of taking an en- economy and rapid growth in my dis- If you bought a home that is too big ergy bill and making the housing pro- trict of Las Vegas combined to make for you, that you couldn’t afford from visions, one of the challenges of the the city appear immune to economic the get-go, or you were betting that country today, short-circuited as an downturn. This foreclosure crisis has property values would go up in your re- amendment to circumvent debate, shown that this is no longer the case. gion, that’s tough. amendments, recommittals, and sub- Nevada has had the highest statewide If you lent money without income or stitutes that would be afforded the mi- foreclosure rate for well over a year. means of those who were borrowing it, nority in any other instance. The surge in foreclosures has led to or you preyed, you preyed on people And as I look at this and the frustra- huge inventories of unsold homes. This, who didn’t know better and then tion I heard in the ranking member’s in turn, has led to massive layoffs of churned their loan repeatedly, that’s message of what is being trampled on the construction industry and other tough. If you purchased securities on rights of the minority to make pres- housing-related fields. Nevada, which without determining if the loans un- entations, quite frankly, maybe some has been a land of economic oppor- derlying them were sound, that is your majority Members on amendments, re- tunity, the fastest-growing State in problem. That is not the taxpayers’, committal, and substitute, I find it dis- the Nation, now has an unemployment that is not your next-door neighbor’s turbing that this is the beginning of rate of 5.8 percent, which is, I’m sorry problem. strong trends of kind of a less than rea- to say, well above the national aver- We do have a role in Congress and it sonable approach to advance legisla- age. is this, to address this issue: One, we tion through this body. This amendment takes several steps should make sure that there is avail- And in the final thoughts, as we look that will help both current and pro- able, affordable credit for creditworthy at the predicament we’re in on proce- spective homeowners as well as in- borrowers. We need to make sure that dural processes here and maybe the crease affordable housing opportuni- we prevent this from occurring again. fact that we could have made this bill ties. Current homeowners will be And we need to punish, aggressively even better, I must share with my col- helped by the creation of a standard de- punish, the bad actors who have in- leagues that there is a clear veto mes- duction for property taxes, which will fected our entire American economy. sage on this legislation as it leaves the lower Federal taxes for taxpayers who The proposal we have before us today House and it will unlikely be the solu- don’t itemize and by freeing up funds is well intentioned, clearly. I think Re- publicans and Democrats agree on the tion of the land. to refinance certain subprime loans. need to help where we can. It is well in- So with that, Mr. Speaker, I reserve The tax credit for first-time home- tentioned. It is not particularly effec- the balance of my time. buyers creates a great incentive to get tive. I have my doubts that it will help Mr. NEAL of Massachusetts. Mr. families into properties that are cur- much at all. It is too little, too slow, Speaker, just briefly in reference to my rently sitting vacant due to foreclosure too unfocused. It is, as you would friend Mr. REYNOLDS’ comments, the or that have been sitting on the mar- imagine, a typical Washington reac- constraints that we are operating on ket for long periods of time due to ex- tion. today, as he criticizes them, are en- cess unsold inventory. The bill also For example, a provision to allow tirely legitimate; but they are institu- takes steps to increase affordable rent- States to have more authority for low tional problems, as opposed to just the al housing, another critical need in Las income housing. Nothing wrong with will of the majority. Vegas. that. In fact, we need more of that. I was asking a Member of the minor- I’m hopeful that the combined efforts That housing likely, knowing the proc- ity last evening, ‘‘Is it possible to be an of this amendment and other provi- ess that works here, in the State of aggrieved Member of the majority?’’ In sions of the package will be to allevi- Texas and others, it will probably be 3 these instances I think you can be an ate the current housing crisis and help years before anyone moves into hous- aggrieved Member of the majority. turn our Nation’s economy around. I ing of that caliber. Way too late for But I want to emphasize a very im- proudly support the intent and the sub- this problem. portant point: This legislation received stance of this legislation. I urge adop- The property tax deduction for sen- overwhelming support from the minor- tion. iors who don’t itemize, you always ity in the committee, and I think based And I must say I think it’s insulting want to help people with their property upon news accounts this morning that to the American people when they hear taxes. But is a retired person really there was some conflict in two major that there are Members on the other going to take $350 and buy a new home dailies as to whether or not the admin- side of the aisle that support the bill, or buy a foreclosed home in their istration would, in fact, veto this legis- support the intent, but are voting neighborhood? Not likely. lation, but I can’t overstate enough against it because they didn’t get a Even the tax credit for first-time this simple point: There was ample op- procedural motion to vote on. homebuyers, a part that, I think, the portunity for the minority to partici- Let’s do what’s best for the American philosophy of which I really like. But pate in the debate at the Ways and people and stop this ridiculous infight- this no-interest loan is structured so Means Committee; and, in fact, they ing that nobody out there cares about. low, $7,500, it won’t allow them to buy succeeded in amending the legislation They care about staying in their a home. There are not many $75,000 that has come to the floor today, and homes. They care about protecting homes on the market. If it’s only a 5 every voice was heard. their families. And, quite frankly, they percent down payment, there are, Mr. Speaker, with that I would like don’t give a hoot whether somebody truthfully, not very many $150,000 to yield 3 minutes to the distinguished has a motion to recommit to vote on. homes that are in the areas of America gentlewoman from Nevada (Ms. BERK- Mr. REYNOLDS. Mr. Speaker, I that actually have massive fore- LEY). would like to yield 5 minutes to the closures. Those tend to be either in the Ms. BERKLEY. I thank the gen- gentleman from Texas (Mr. BRADY), a depressed areas or in the high-value tleman from Massachusetts for yield- distinguished member of the Ways and States where a lot of people did bet on ing. And I would like to particularly Means Committee and a leading expert rising property values. thank Chairman RANGEL and Chairman on this issue. FRANK for their extraordinary efforts Mr. BRADY of Texas. Thank you, Mr. b 1300 on behalf of the American people. REYNOLDS, for your leadership on our So I like the philosophy of it. I don’t Mr. Speaker, this amendment and economic issues here in Congress. think it will help much. Thankfully it the overall housing package we are Mr. Speaker, a principle that is be- won’t hurt. It won’t hurt. There are considering today will help millions of fore us today is that Congress should good things in this bill. The FHA mod- Americans and significantly improve not be bailing out speculators, lenders, ernization and the reform of Fannie the economic situation in my State of or investors who have behaved irre- Mae and Freddie Mac I think are ex- Nevada. In recent years the vibrant sponsibly. actly appropriate.

VerDate Mar 15 2010 15:08 Nov 08, 2010 Jkt 069102 PO 00000 Frm 00097 Fmt 0688 Sfmt 0634 E:\BR08\H08MY8.004 H08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD May 8, 2008 CONGRESSIONAL RECORD—HOUSE, Vol. 154, Pt. 6 8241 But if our goal is to make sure we two things that are good and one thing looking. It is straightforward. It is an have available credit for creditworthy that is very good in its absence. The up to $10,000 tax credit for a purchaser borrowers, I think this bill is a poor al- two things that are good are one, it ad- of a home, not a foreclosed home only ternative to the Hope Alliance, which dresses very specifically, in a practical or a new build only or anything like is moving faster and more effectively way, the housing crisis that has been that. Just if they want to buy a new today and covering more than 90 per- brought on by the subprime foreclosure home or a home they would be eligible. cent of those who have mortgages and debacle. I realize that there was at least a could have problems, or has already What it does is it shares the oppor- weak attempt to something like that worked with 1.4 million families who tunity of relief and it shares the pain in the amendment that is before us need help moving them into new loans of getting the relief so that we can end now. We have got a $7,500 tax credit. or moderating the loan they have up at the end of the day with several But when you look at the eligibility today. And they are doing that without hundred thousand American families and the fact that, yes, it is a refund- taxpayers underwriting any potential still in their homes, lenders having able tax credit that you have to pay loss. That is, I think, the approach that been able to mitigate their loss, home- back, it turns out to be rather useless works best and is already proven to owners being able to keep a roof over in trying to stimulate the housing work. their head, and the American taxpayer market. This is really a faux or phan- I will finish with this. I have said not being left on the hook. tom tax credit. So I don’t think that that there is nothing patently offensive It does it by recognizing we have to can be used to help stimulate our econ- in the amendment from Ways and use existing institutions to accomplish omy or the housing market to get us Means. In fact, again, I think it is well that. It does it by acknowledging that out of the housing depression here. intentioned. But in the underlying bill it has to be voluntary. A lender will be And one of the issues that we’re talk- by Chairman FRANK, there is some- in this program only when they make ing about here today is the devaluation thing that is especially offensive. the practical business decision that it of our homes because of the housing de- I come from Texas. Our region was is a better route than foreclosure. A pression and that what we’re going to destroyed in Hurricane Rita, a hurri- borrower is going to be able to make do is make up the difference of a home cane that was stronger than Hurricane that same change and has to be able to that has been devalued that goes into— Katrina. We lost 70,000 homes that were demonstrate an ability to pay at the The SPEAKER pro tempore. The damaged or destroyed. We lost more new current appraisal value of that time of the gentleman has expired. than $1 billion of our timber industry, property. And in the process of doing Mr. REYNOLDS. I yield 1 additional our main crop. We still have 10 percent that, it means that we use the guar- minute to the gentleman from Ne- of our families who haven’t moved anty of the taxpayer, but in all likeli- braska. back to southeast Texas because they hood, according to the CBO score, not Mr. TERRY. What we are going to do don’t have housing. Yet in Chairman the money of the taxpayer. is spend $300 billion to try and get us to FRANK’s underlying bill, he creates an So it is a practical solution to a very right size that by bailing these folks affordable housing fund and dedicates severe problem that could only have out. That’s just going to prolong the $500 million to Louisiana and Mis- been brought to this House for consid- problem according to the economists. sissippi to help rebuild housing in eration with the extraordinary co- Two points there: If that is all that those areas. And yet for the same hur- operation of both sides in the Ways and we are really going to do here, we are ricane, and Hurricane Rita, in the com- Means Committee, the Financial Serv- not going to turn the tide of the de- munities that actually took in the ices Committee, and the help of high valuation of our homes. The only way Katrina families as they fled that hur- administration officials who had sig- to do that is to increase demand over- ricane, and then those same families nificant input along the way. all, which increasing your tax credit have their own roofs torn off in south- And it would be very unfortunate if will do, not the phantom one that is east Texas, this bill says, ‘‘Drop dead. the procedural debates that we are hav- here. Forget it. We are going to help those ing about process, made at the leader- The other way is when you look at who are on this side of the hurricane.’’ the market and the availability of The SPEAKER pro tempore. The ship level, derail what is a practical ap- credit, especially for lower income peo- time of the gentleman has expired. proach to solving a very serious prob- Mr. REYNOLDS. I yield the gen- lem. What this bill isn’t, and I con- ple, I think we are doing the right tleman an additional 30 seconds. gratulate the Members on both sides as thing here by increasing the cap or the Mr. BRADY of Texas. But to those well, it is not a blame game about who limit on credits for low-income hous- who not only took in those of Katrina, caused this. That is for another day. ing. But there is also market-available to those communities that opened Mr. REYNOLDS. Mr. Speaker, it is tools that are out there. I have had their hearts, their churches and their now my privilege to yield 2 minutes to people come to my office and present homes and have their own community the gentleman from Nebraska (Mr. these market, nongovernment bailout destroyed, this government and this TERRY). programs, not programs but options, Congress is saying, ‘‘Forget it. We are Mr. TERRY. Mr. Speaker, I appre- where they use a 501(c)(3) entity where going to divide this hurricane along ciate the opportunity to come down you can put the life insurance in and State lines. You can drop dead. No help and speak. cover the costs, reduce the house, and for you in housing. No help for you in Certainly in every one of our dis- I thank you for the opportunity. apartments. No help for you, period. tricts, the housing crunch or crisis af- Mr. NEAL of Massachusetts. Mr. None. Zero for the victims of Hurricane fects everyday people. And we have to Speaker, I must tell you I swore to my- Rita in Texas.’’ look at the best way to resolve this. self I was going to resist what I’m This Congress ought to be ashamed of And I think what we have today is about to say until I heard the term itself. kind of a best-intentions type of bill. ‘‘bailout.’’ The minute I heard the term Mr. NEAL of Massachusetts. Mr. But I don’t think it’s really getting to ‘‘bailout,’’ I thought to myself the Speaker, I would like at this time to the heart of the matter. When I have speed with which the Federal Reserve yield to the gentleman from Vermont talked to several economists that spe- Board and the Treasury came to the via Springfield, Massachusetts, one of cialize in the real estate markets, all aid of Bear Stearns in a 48-hour period. the most distinguished families in have told me that when you’re looking And to use that same example of mak- Springfield, my friend, Mr. WELCH, for back and trying to remedy or bail out ing it an analogy here is striking. 2 minutes. what has occurred, that you are really With that, I would like to reserve the Mr. WELCH of Vermont. Thank you, not going to fix the problems or stimu- balance of my time. Mr. Chairman. late the housing industry. Mr. REYNOLDS. Mr. Speaker, first, I Mr. Speaker, I rise in strong support So I have developed, with several of guess I will ask the gentleman if he has of this legislation. The legislation does my colleagues, a bill that is forward any other speakers. I am prepared to

VerDate Mar 15 2010 15:08 Nov 08, 2010 Jkt 069102 PO 00000 Frm 00098 Fmt 0688 Sfmt 0634 E:\BR08\H08MY8.004 H08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD 8242 CONGRESSIONAL RECORD—HOUSE, Vol. 154, Pt. 6 May 8, 2008 close and yield back the balance of my lift the spirits of the gentleman from a couple of weeks ago, urgently asked time. New York, my friend, Mr. REYNOLDS. the Congress to send him several pieces With that, Mr. Speaker, I think, In fact, I think what is sad is that of legislation, three in particular. One again, for our colleagues it is impor- you are leaving us, that you’re retir- is embodied in the part of the bill that tant to understand some of what has ing. And I was searching hard to figure came out of the Ways and Means Com- happened that the minority feels that out the meaning of that acronym, mittee. their rights have been trampled in based upon the fact that the Ways and Two, in fact, had previously passed what has been a very unusual decision Means Committee took this legislation the House from our committee, the bill on a major piece of legislation, hous- up, and I want to reiterate, for the reforming the government sponsored ing. It is certainly a significant piece fourth time today, 12 of the 17 Repub- enterprises—and that came out of our of legislation because the Rules Com- licans on the committee voted for the committee and on the floor in a form mittee granted 3 hours of debate by very bill that they are now all saying that the administration mostly liked— various jurisdictions. So it certainly they are going to oppose. Forgive me. and the bill to modernize the FHA. sends a signal to all observers that this That is sad. How can you come to the In fact, the Senate then acted on the is serious. It warrants debate. And it is floor and argue against the proposal bill to modernize the FHA. We went now before the House. that you voted for in the committee into conference, we ran into some dif- But I want to remind my colleagues when you agree with just about every ficulty. Not a formal conference, but a that this is not a bill that has gone reg- part of the bill? ular order. There is a Senate bill that conversation. What we have done be- is energy that has come over to the b 1315 cause, as we know, the Senate is in a House. And we have now amended it That’s what’s before us here. We have situation where procedurally it’s often entirely with a housing amendment. heard these arguments, and they have harder for them to act, so we are act- And so this is an amendment to an ex- all said, we support most of what’s in ing on the basis of a Senate bill. isting Senate bill to circumvent all of the bill, but they are prepared because We are readopting today two of the the regular order process that the of an institutional constraint with the pieces we already adopted, reforms of House enjoys and has had speakers of Senate to vote against the legislation Fannie Mae and Freddie Mac and the both parties affirm this should be the that they favor. FHA modernization. I think it ought to action of how we debate great issues of In my home State of Massachusetts, be noted that in both cases they are a the day. it’s sixth in the Nation in foreclosure recognition by the President that the This body is really infamous for acro- activity. In Springfield, the largest private sector needs to be able to co- nyms. So today I call this the SSAD community in my district, 300 homes operate with public or quasi-public en- Amendment, or the Sorry Sick Amend- have been foreclosed this year and over tities to get the job done. Those who ment Decision. It is sad because the bi- 2,000 mortgages will reset to higher in- take the philosophy that the market partisan work that was done in the terest rates by the end of next year. alone is sufficient unto itself, and that Ways and Means Committee outlined In response to the worsening housing public sector intervention will do more by many from the Ways and Means crisis, Massachusetts this month initi- harm than good clearly have been repu- Committee is not being worked ated a new law that extends the fore- diated. through a process so that bipartisan- closure moratorium from 30 to 90 days. The FHA is a government agency. ship and the ability to have the entire Other States are taking similar action, Fannie Mae and Freddie Mac are gov- body debate its work that came from but, like Massachusetts, they need help ernment creations with both public and committee. from Congress. private aspects. It is clear that we need It is sad that the bipartisan work was Reports seem to suggest that the both of them if we are to get out of this trampled in the Rules Committee by housing slide won’t turn around until current crisis in mortgage lending and this decision to slickly move around 2010. These tax provisions we are con- be able to go forward in a healthy way. the mechanism of regular order in our sidering today for families and commu- There is one new element today. House. It is sad that there is no sub- nities will help turn it around, I hope, That is a bill that our committee voted stitute. It is sad that there is no re- much sooner. It certainly will help our on last week and the week before. We committal. It is sad that what makes economy and markets in general. had a markup. It was suggested to us in it a procedure so unusual and so frus- The President’s housing proposals many ways by some of the regulators. trating is the House never had a chance really haven’t worked. It’s time for the In its essential form it was endorsed to work its will on housing legislation. Congress to act. We are often accused last Monday by the Chairman of the In fact, as I said, the housing bill sent of having a short memory, but I think Federal Reserve, and we worked closely back to the House by the Senate was all Members in this chamber remember with his staff. The administration had an energy bill. When it first passed the the recent government-backed bailout an objection to one major piece of an House, it had nothing to do with hous- of Bear Stearns, yes, the bailout of auction mechanism. That’s the longer ing. And it is sad that a procedural that mom-and-pop operation called part of the bill. What it says is that straitjacket has been used in order to Bear Stearns. If we can, with great ur- holders of loans, not the lenders, be- garner the type of votes that the ma- gency and enthusiasm, come to the aid cause the lenders have unfortunately jority wants to put before the House of Wall Street, we have no excuse not long since been able to sell off their today. to help the people who reside on Main Finally, it is just plain sad that the loans in many cases—and that’s part of Street. the problem—if the holders of loans bipartisan work of the Ways and Means I hope that my colleagues will sup- will write down the amount due them Committee is joined up by the Rules port this legislation, and I ask unani- in the principal, and if they get to a Committee with the Frank housing mous consent to yield the remainder of point below the current value of the bill, because it has been clear that sen- my time to the gentleman from Massa- home, in many cases these homes have ior advisers to the White House will chusetts (Mr. FRANK). recommend the President veto the The SPEAKER pro tempore. Is there lost value from when they were first work of the Ways and Means Com- objection to the request of the gen- mortgaged, and the borrower can be mittee. tleman from Massachusetts? reasonably expected to repay it, we So as we debate one of the significant There was no objection. will broaden the right of the FHA to issues that many feel should be debated Mr. FRANK of Massachusetts. Mr. make a case-by-case determination, in the House, it is a sad day how we Speaker, I will claim the remaining provide a guarantee so that can then be have approached to do it. time on behalf of the Financial Serv- financed and resold to the secondary I yield back the balance of my time. ices Committee. market. Mr. NEAL of Massachusetts. Mr. Mr. Speaker, this is a composite It’s entirely voluntary on the part of Speaker, let me see what I can do to package. The President some time ago, the lender. The lender will retain the

VerDate Mar 15 2010 15:08 Nov 08, 2010 Jkt 069102 PO 00000 Frm 00099 Fmt 0688 Sfmt 0634 E:\BR08\H08MY8.004 H08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD May 8, 2008 CONGRESSIONAL RECORD—HOUSE, Vol. 154, Pt. 6 8243 right to foreclose. In many cases we be- have said in a letter to me in the to the distinguished ranking member lieve that it will pay the lender not to House, that they wanted to question of the House Financial Services Com- foreclose. this. mittee, Mr. BACHUS. In fact, we have legislation in this I would note, by the way, we talked Mr. BACHUS. Mr. Speaker, I rise in package sponsored by the gentleman about this, I have looked at the letter strong opposition to this Democratic from Delaware (Mr. CASTLE) and the that was sent to me. I looked again at omnibus housing bill, and also I rise in gentleman from Pennsylvania (Mr. the letter, and in no case does it say strong opposition to the procedure KANJORSKI) that will ensure servicers they were opposed to it. People raised under which it comes to the floor today who are willing to write down the questions. Maybe that’s an easy way to under a contorted rule, which is de- amounts, that they will not be sued if kind of cover your bases, but my point signed to do one thing and one thing they write down those amounts to a is not so much those who wrote the let- only, and that’s allow no Republican reasonable level. We think that is very ter, it’s the administration. amendments, allow no input, allow no helpful. Again, it’s voluntary. The administration says they’re open debate of different provisions with We do believe that knowing if you going to veto this bill, that it’s a bail- any ability to modify those provisions. write this down to a reasonable level, out. It is $2.4 billion versus $30 billion Mr. Speaker, I submit for the RECORD accepting your loss, you will be able at Bear Stearns. page 24 of a promise that the Demo- then to at least get some guarantee of Now, I believe that Secretary cratic majority made to the American that to help stabilize the situation. But Paulson and Chairman Bernanke have people. It’s a statement of the Speaker people should understand, there is not been doing the best they can in this of the House in their document ‘‘A New $1 of taxpayer money going to writing situation. I am not critical of what Direction for America.’’ down that loan. The holders of the they have done. Chairman Bernanke REGULAR ORDER FOR LEGISLATION loans have to write it down. has been consistent and thinks this is Bills should be developed following full Secondly, the borrower can then go also a reasonable thing to do. hearings and open subcommittee and com- to the FHA if the borrower can pay the The President, of course, appointed mittee markups, with appropriate referrals new loan, but there is no taxpayer Secretary Paulson and Chairman to other committees. Members should have money that will go to help pay off that Bernanke, and for the administration at least 24 hours to examine a bill prior to that supported and facilitated the $30 consideration at the subcommittee level. loan. The taxpayer exposure comes in billion for Bear Stearns which went to Bills should generally come to the floor the fact that there are FHA guaran- lenders, went to investors and some of under a procedure that allows open, full, and tees. If someone gets an FHA guar- fair debate consisting of a full amendment them were speculators—to then object antee and subsequently fails to make process that grants the Minority the right to when it’s homeowners seems to me to the payments, his or her house is for- offer its alternatives, including a substitute. be entirely the reverse of the reality of feited to the FHA. Members should have at least 24 hours to We will lose some money on this, we the situation. examine bill and conference report text prior Again, I want to stress, I was asked to floor consideration. Rules governing floor believe. The Congressional Budget Of- by 17 Republicans if the committee debate must be reported before 10 p.m. for a fice estimates that half a million fore- would have a hearing. My answer was bill to be considered the following day. closures will be averted by this pro- yes, the committee will have a hearing Floor votes should be completed within 15 gram, that would otherwise have taken minutes, with the customary 2-minute ex- after we have dealt with the current place, at a cost to the taxpayers of $2.4 tension to accommodate Members’ ability to subprime crisis—and that will be soon, billion. That means $4,800 for every reach the House Chamber to cast their votes. that was our priority—and a hearing foreclosure averted. No vote shall be held open in order to manip- not simply to say what did you do, be- ulate the outcome. We are told, well, this is a bailout, cause we cannot compel them to undo House-Senate conference committees and I want to follow on what my col- it—to look at what they did in the should hold regular meetings (at least week- league from Massachusetts said. We Bear Stearns thing in the context of ly) of all conference committee Members. All have seen one bailout this year over in- duly-appointed conferees should be informed figuring out how we are best able to di- vestors and speculators. It came when of the schedule of conference committee ac- minish the likelihood that it will the Federal Reserve, actively urged on tivities in a timely manner and given ample recur. opportunity for input and debate as decisions by the Treasury, bailed out for $30 bil- But we are in a recession, and a lion potentially—we don’t know what are made toward final bill language. major cause of that recession is the The Suspension Calendar should be re- the losses will be—but $30 billion is at subprime crisis. We do not see any al- stricted to non-controversial legislation, risk of what will ultimately be public ternatives to this bill to trying to work with minority-authored legislation sched- money, to lenders, to speculators and on that. uled in relation to the party ratio in the investors, people who were partners at Yes, we had Hope Now, and then we House. Bear Stearns. had FHA Secure. The administration In this document, the Democratic Now there may have been some con- had several policies. They have been majority promised to the American fusion yesterday. I tried to avoid it. I closer, in many ways, to us. The dif- people in what was called a Congress am not critical that we are doing that. ferences are not as great as they once working for all America, they made I am critical of the lack of sensible reg- were. this promise: ‘‘Bills should generally ulation that led them to be in that po- But the fundamental here is this, come to the floor under a procedure sition. I think we do have to examine foreclosures are causing, have caused that allows open, full, and fair debate it, and I want to examine it from the and are causing serious economic prob- consisting of a full amendment process standpoint of what we can do that will lems. Diminishing the number of fore- that grants the Minority a right to make it less likely that we will be con- closures is in the interest—not simply offer its alternatives, including a sub- fronted with that kind of choice, either of those who will avert foreclosure— stitute.’’ provide those funds or see serious fur- but of people in the neighborhood of Well, that’s not what we have here ther economic debilitation. the cities in which they are located and today. Instead, we have what we are But for the administration that engi- the whole economy. That’s why we are calling the American Housing Rescue neered $30 billion of bailout for the in- going forward with this bill. and Foreclosure Prevention Act of 2008, vestors and others who did business Mr. Speaker, I reserve the balance of but, in fact, it started out as a bill here with Bear Stearns to say that this $2.4 my time. in the House and passed the House as a billion cost according to CBO that will Mr. NEUGEBAUER. Mr. Speaker, I bill to move the United States towards avert 500,000 foreclosures is unaccept- claim time in opposition. greater energy independence and secu- able as a bailout is as intellectually The SPEAKER pro tempore. The gen- rity. Absolutely none of that bill re- and morally and economically incon- tleman from Texas is recognized. mains, it’s a total sham. sistent a policy as we have ever seen. It Mr. NEUGEBAUER. Mr. Speaker, I Through some, I suppose, back room, is true, and some of the Republicans yield so much time as he may consume front room, side room, smoke-filled

VerDate Mar 15 2010 15:08 Nov 08, 2010 Jkt 069102 PO 00000 Frm 00100 Fmt 0688 Sfmt 0634 E:\BR08\H08MY8.004 H08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD 8244 CONGRESSIONAL RECORD—HOUSE, Vol. 154, Pt. 6 May 8, 2008 room, who knows, but the Democratic there is agreement in this House, and have to start paying. And the vast ma- leadership, we, the American people we could have agreed today and almost jority of Americans who find them- really don’t know—but at some point unanimously passed a FHA reform bill selves struggling with mortgage pay- they decided to take every bit of that which all Members of this body say will ments, struggling with high gas prices, bill out. The only thing that remains of go a long ways toward solving the struggling with high food prices, are that bill, actually, is the resolution problems of Americans stressed by low- now going to assume responsibility for that brings this bill to the floor. ering housing prices and their mort- ill-advised financial decisions and It refers to this bill and the resolu- gage obligations. We could have done misjudgments of other people. Good tion that brings it to the floor. The res- that. But in the Senate there has been and decent people who have absolutely olution says, upon adoption of this res- no movement. We won’t do that today done nothing wrong, don’t have a bad olution it shall be in order to take because if we start taking those con- mortgage, don’t have a problem with from the Speaker’s table the bill (H.R. crete steps, it will diminish the major- their mortgage, are going to be trapped 3221) moving the United States towards ity’s opportunity to take what is a bad in this dragnet. greater energy independence and secu- situation and adopt and create a tre- Now is it necessary to involve the 110 rity, developing innovative new tech- mendously expensive new omnibus million American families that aren’t nologies, reducing carbon emissions, housing bill. behind on their mortgages? I say, no. creating green jobs, increasing clean, GSE reform, we would have liked to No. In fact, the Federal Government renewable energy production. That’s have seen that joined with FHA. It is has already extended almost a trillion all gone. But that’s still in the RECORD. in this bill, and it is offered kind of as dollars in guarantees of liquidity. They That’s still the resolution. a candy or a carrot: take the GSE re- have brought onto their books, the form which you want, take the FHA re- b 1330 Federal Reserve, almost a half a tril- form which you want and we have all lion dollars worth of these questionable Mr. Speaker, the procedure outlined passed, and in doing that, you will have loans and questionable securities back- here indeed stifles the democratic proc- to take a new $300 billion housing pro- ing these loans. And the American peo- ess. It corrupts the democratic process. gram. At a time when we are running a ple could be on a hook for that. Despite ‘‘A New Direction for Amer- deficit, that makes no sense to most That is why my companion on the Fi- ica,’’ despite a specific promise not to Americans, most of us on this side of nancial Services Committee and 17 of do this, we have a process that not only the aisle. Most of all what I do oppose us on the Republican side wrote the allows no Republican amendments, no is our inability to strike from the over- chairman and said we need to take a substitutes, it does not allow even a all package this new $300 billion gov- close look. We need to urgently look at vote on final passage of this entire bill. ernment subsidy that I believe is fun- the Federal Government extending its There will be no vote on final passage. damentally unfair and likely to do guarantees and assuming securities There will be a vote on each of the more harm than good. and investments that maybe have no three amendments that go to make up Mr. Speaker, let me explain, and in market value, just to pump liquidity this package, but as the resolution doing so I do not want to minimize the into the market. clearly says, it is sort of self-executing, seriousness of the distress many of our Now what we have agreed to in the a motion that the House concur in the citizens are experiencing. When we past and we continue to agree with and Senate amendment to the title, the so- talk about distress, we sometimes we would have liked to have said let’s called renewable energy bill, shall be focus on those who are behind on their go further with this, is the Hope Now considered as adopted. There won’t mortgage payments. But, Mr. Speaker, program. The 1.4 million Americans, even be a vote on that. Now that is let me assure you there are millions of those who come closest to making pretty innovative. That is pretty un- other Americans who are making their their mortgage payments, they are be- usual. mortgage payments; but, nonetheless, hind or in default but they were close, But above all, as strange and as con- they are under an equal stress or a and they had an ability to, with adjust- torted and convoluted as this is, it is a great stress themselves. ments to their mortgage agreements, corruption of the democratic process. Last night the gentleman from could make those payments, 1.4 million It is a corruption of our democratic Vermont said what we want to do with American families have been helped by system, and it is a sad day for this this bill is we want to spread the pain Hope Now. And we think that more House. from those million or 2 million Ameri- will be helped. It is not the Members of this House cans who are behind on their mortgage, The FHA Secure program, almost who are being denied the full amend- we want to spread that pain to all 180,000 families have been helped by ment process, it is Americans, those Americans. We want to spread that that program, at some Federal expense. Americans we on this side of the aisle pain to those 34 million Americans who Before we create a massive new gov- represent. They, as are we, are being are renting their homes. We want them ernment program and put billions of shut out of the process. to take part of that yoke upon them. additional taxpayer dollars at risk, we Now, Mr. Speaker, if we had been al- We want those who are making their need to think long and hard about ask- lowed, and we were not allowed to offer mortgage payments on time, we want ing other Americans to assume this a substitute, if we had been allowed to them to adopt some of this liability burden. offer an amendment, one of our first and assume some of this liability. We Lenders and securitizers wanted no substitutes would have contained some want those 25 million American fami- part of government regulation or inter- of the things that the Democratic al- lies who have paid off their mortgages, ference when house prices were soar- ternative has. It is a Democrat alter- many of them elderly citizens, we want ing, and they made extraordinary prof- native, but there is no alternative, nor them to assume some of this pain. We its. Speculators made millions of dol- was one allowed, so I am not sure that want them as taxpayers to assume lars. Lenders made millions of dollars. we ought to use the word ‘‘alter- some of these liabilities. Investors on Wall Street bought high- native.’’ Alternative without an alter- In other words, 110 million American risk SIVs, securitized investment vehi- native is maybe what we should call it. families who are making their mort- cles, and they made millions of dollars. But it has FHA reform in it. When we gage payments on time, who are rent- Sometimes we read where the heads of said we would have liked to have of- ing or who have paid off their mort- those hedge funds, private equity fered a stand-alone amendment or of- gages, they are being drug into this funds, and investment banks were paid fered legislation to do that, the chair- process and are being made liable and a billion dollars in profits. They all man says that has already passed the are on the hook now for these bad made a lot of money. But now that the House. Certainly it has; so did the re- loans. They have been reading about it, loans that they eagerly made are going newable energy bill. But it didn’t pass and now they are going to be respon- bad, this bill offers a mechanism to off- the Senate. We would like, because sible for them. Now they are going to load their problem loans onto the

VerDate Mar 15 2010 15:08 Nov 08, 2010 Jkt 069102 PO 00000 Frm 00101 Fmt 0688 Sfmt 0634 E:\BR08\H08MY8.004 H08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD May 8, 2008 CONGRESSIONAL RECORD—HOUSE, Vol. 154, Pt. 6 8245 American taxpayers. That is unfair. It very tough financial position. If I have were on the floor today discussing an is wrong. learned anything over the past year, it energy future for America. Because participation in the plan is is how intricate our financial and eco- It’s now my distinct pleasure to yield voluntary, no investor will part with a nomic markets are woven. 5 minutes to the distinguished ranking mortgage if they think it has a reason- As members of the Financial Serv- member of the Housing Subcommittee, able chance of performing. The incen- ices Committee, we have been pre- Mrs. BIGGERT from Illinois. tives are designed to ensure that the sented and have debated dozens of pro- Mrs. BIGGERT. I would say that all I taxpayer loses. Investors will place the posals and ideas to combat this hous- can find in the Congressional Budget worst mortgages they have into the ing crisis before us. Many of them were Office cost estimate is that it’s $2.7 bil- program. In fact, that is exactly what sound, good ideas worth pursuing. lion and not $2.4 billion over 2008 to they are going to do. They are going to In the months leading up to today, 2013, as far as the CBO estimate that off-load the worst of their loans. If going around my district I came to sev- Chairman FRANK was talking about. there is any chance of people paying, eral conclusions, but one is that Con- You know, Congress has yet to sub- they won’t put these loans into this gress cannot accept the status quo. I mit a single bill to the President that pool. They will take those loans where have been patient. I believe in the mar- might begin to address this crisis in people are way behind or have no abil- ket working itself out, but that just the housing market, and here we are ity to pay and they will put them into doesn’t seem to be happening. At a again debating controversial new hous- a program that will be financed by time when our dollar is devalued, not ing legislation, instead of passing com- FHA-guaranteed loans. We all know only is the price of petroleum products, mon-sense housing reform that could when those loans go bad, who pays. It the gas everyone fills up with over $1.70 start helping homeowners. is not the lenders, it is not the bor- more than it was a year ago, we also And I feel like I woke up one morn- rowers, it is not the investors, it is not have very high food prices. People are ing, we just had a markup on the Hous- the speculators, it is the people we all finding it hard to make those pay- ing bill, and suddenly, I couldn’t even represent. ments. find the number of it, H.R. 3221, and it Given the substantial risk these And the beauty of this, it has to be a suddenly was a different bill with a lot loans present, no lender would refi- homeowner who is being helped out, of different provisions in it. Some were nance them without the FHA guar- not a speculator, not a flipper. the same and some weren’t. I have to antee. That is what was said on the While Chairman FRANK’s proposal say this reminds me of the SCHIP bill floor. They are not going to refinance isn’t perfect, I do think it is one that that we debated, which kind of came these with a Federal Government guar- Members should take a very close look over here the same way from the Sen- antee. There is a reason for that. They at and compare it to what is happening ate. I don’t think it’s going to be the anticipate a default. in their districts. It is a voluntary, same result, but I just can’t understand The result is the taxpayers of this participatory program. No one is forced that process. country, 110 million American families And I do appreciate Chairman that acted responsibly during the run- to play. FRANK’s inclusion of FHA and GSE re- 1345 up in housing prices will be left to bear b form, as well as the funding for housing the cost of cleaning up after irrespon- This is not the silver bullet, by any counseling and mortgage fraud in the sible lenders, investors and specu- means. Homeowners, lenders and inves- bill that we’re considering today. But lators. That’s just not fair. tors will make sacrifices under this. these are much needed reforms that For all of those reasons, Mr. Speaker, But I’m also concerned about hearing could increase the liquidity in the I oppose this housing package and I ex- from constituents who try to work housing market and provide consumers press my disappointment that the Re- with their lenders, but their lenders with an alternative to the bad publican Party, the minority, that won’t call them back. I’m tired of driv- many representatives here were shut subprime loans, and help to restore ing through the Fifth Congressional out of the process, denied any oppor- consumer confidence, which is so im- District and seeing many houses va- tunity to address the bill’s many defi- portant. cant because of foreclosure. No one But attaching these things to a tax- ciencies through the amendment proc- wins when a house in the neighborhood ess or through the motion to recom- payer-funded bailout will not get them is foreclosed, absolutely no one, be- mit. any closer to the President’s desk. And Mr. FRANK of Massachusetts. Mr. cause it brings down the value of those make no mistake. This is a bailout. It Speaker, before I yield to the gentle- properties. would place U.S. taxpayers on the hook woman from Florida for 3 minutes, I No, Mr. Chairman, we cannot stick for the $300 billion guarantee, but that would like to note the use of the figure with the status quo. That’s sticking includes the riskiest mortgage debt on $300 billion is not a hopeful sign about our policy-making heads in the sand. the market. And it does this by allow- a rational debate. Three hundred bil- By providing lenders an incentive to ing speculators, borrowers who have lion is the total value of the mortgages write down mortgages, modernizing overstated assets, who have cheated that could be insured. It would cost FHA, improving GSE oversight and in- and knew that they couldn’t make the $300 billion only if nobody made any cluding tax incentives, I believe we can payments, and those who invested irre- payments ever, and when the property help Americans get back into the mar- sponsibly, to pawn off their financial was taken by the Federal Government, ket and help the housing market to liabilities on U.S. taxpayers. This is a none of it had any value. CBO gave us survive. liability. a score of $2.4 billion. So we can debate The bill isn’t perfect, and certainly, And instead of serving distressed this, but I would hope we can debate it neither was the process that this bill homeowners, the bill requires that the with real numbers. The CBO score for comes to the floor. And I’m sure that lenders, not the homeowners, to make the mortgage part is $2.4 billion. Ev- Chairman FRANK agrees that the proc- the decision to place the mortgage in erybody knows that $300 billion is not ess is murky, at best. But I do believe the program. Since the lenders are the remotely what is at risk. that what we have before us will pro- ones that would like to get rid of their I yield now 3 minutes to the gentle- vide relief to Americans, and I urge bad loans and put those on the, be woman from Florida (Ms. GINNY Members to support it. guaranteed by the Federal Govern- BROWN-WAITE). Mr. NEUGEBAUER. Mr. Speaker, the ment, the taxpayers, the taxpayers will Ms. GINNY BROWN-WAITE of Flor- distinguished ranking member of the be bailing out the banks, the investors ida. I thank the gentleman for yield- Financial Services Committee men- on their most unwise lending decisions. ing, and I thank him for clarifying the tioned that this is a shell. Maybe it’s a Even more disturbing is that the true potential cost of this bill. shell game. I’m not sure. But for en- bailout is partially funded on the backs Mr. Speaker, today we have to face ergy bill being the underlying bill, I of seniors through changes to FHA re- the fact that many Americans are in a think the American people wish we verse mortgage program.

VerDate Mar 15 2010 15:08 Nov 08, 2010 Jkt 069102 PO 00000 Frm 00102 Fmt 0688 Sfmt 0634 E:\BR08\H08MY8.004 H08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD 8246 CONGRESSIONAL RECORD—HOUSE, Vol. 154, Pt. 6 May 8, 2008 Mr. Speaker, we shouldn’t be asking for worthy borrowers who genuinely And I know that this amendment is an American taxpayers to pay for the mis- want to pay off their loans, but we attempt to try to clarify that. In fact, takes of those who over estimated need to do it without wasting tax- I think it confounds it, and my concern their income on mortgage applications, payers’ dollars. about the unanimous consent request or scam artists that inflated appraisals I think we have an alternative bill is that it doesn’t make it clear still. So and flipped properties. Nor should they that would solve these problems. And I have significant concerns about the pay for homeowners who chose to live many were supported by both Repub- amendment. beyond their means, using inflated licans and Democrats. It’s a common- I’m happy to yield to my friend from home equity loans to buy a new plasma sense plan that doesn’t spend money Ohio for any clarification that he TV, a swimming pool or a fancy car. It and, in fact, has been scored by CBO to might offer. is not fair to those who saved and in- actually reduce the deficit by $25 mil- Mr. LATOURETTE. If the gentleman vested responsibly. lion. Coupled with Mr. TERRY’s tax would yield to me on his reservation, I The majority of Americans are work- credit for owner-occupied homebuyers, would make this observation to the ing hard to make ends meet. Ninety- it will jump-start the flailing housing gentleman and to the House. This three percent of our mortgage holders market and get our economy back on amendment that Mr. MILLER and I are making their payments on time. track. crafted, obviously, one of the things Fifty-one out of 55 million Americans That’s why I urge my colleagues to that vexes, and it doesn’t matter with a mortgage are making their vote against the bill before us today whether it’s financial services or any- mortgage payments on time. and consider the alternative, if we had thing else, one of the things that con- Twenty-five million Americans own the opportunity to have an alternative. tinues to vex and cause tension be- their own homes and have no mort- Mr. FRANK of Massachusetts. I yield tween the Federal Government and the gage. Thirty-four million Americans myself first 45 seconds to say that on States is this whole issue of preemp- are prudently renting because they the scoring, $2.4 billion was the CBO tion. aren’t ready to own a home. These score for the mortgage part. They did So when Mr. MILLER came to me with hardworking Americans should not be say a total of $2.7 billion. The other the original amendment, we began to forced to foot the bill for the bad deci- $300 million is attributable to an hear some concerns. And quite frankly, sions of a few who gambled that their amendment offered by the gentle- the concerns were are you opening the home values would never stop rising. woman from Illinois on mortgage. So door to a Maryland-type situation, They don’t think that’s fair, and I the gentlewoman from Illinois is cor- where they can pass a State law that don’t think so either. rect. It is $2.7 billion. That includes the says that nobody can foreclose on prop- I understand that many of my col- $300 million she added to the bill with erty for 5 years, 10 years, 15 years. And leagues are looking at the economic ef- her amendment, and the $2.4 million in clearly, although I happen to think fects of the housing bubble and saying mortgages. that that kind of abrogation of prop- to themselves, ‘‘We must act, we must Mrs. BIGGERT. Will the gentleman erty rights is an unconstitutional exer- do something. ‘‘But we shouldn’t do yield? I thank you for putting that $300 cise of legislative authority, I under- something if it’s not right. Congress million. stood the concerns. can help struggling borrowers and pro- Mr. FRANK of Massachusetts. Yes, And so I will tell the gentleman on mote economic growth without bur- the gentlewoman is correct. dening the taxpayers with inappro- Now I would yield to the gentleman his reservation that we sought the ad- priate spending. from Ohio for a unanimous consent re- vice of the OCC and the OTS and re- And that’s why I join with Financial quest. ceived a list of things that are already preempted. And as I think the gen- Services Ranking Member BACHUS to REQUEST FOR PERMISSION TO MODIFY tleman has accurately stated, the man- offer an alternative plan that helps AMENDMENT NO. 3 ner, the process in which foreclosures homeowners in a responsible way. It Mr. LATOURETTE. Mr. Speaker, I have happened have always been the does include the FHA reform. This ask unanimous consent that the purview of the States. And then the could solve this problem right away. amendment that I have offered with boarding up of properties or the main- Our substitute funds housing for coun- Mr. MILLER of North Carolina be modi- tenance of properties that are fore- seling, other reforms to GSEs that’s so fied and amended, and I will describe closed. important, without a so-called trust that—but then I know the Clerk has to fund or slush fund. report it—just by adding 2 words, on And so it is my attempt through this And there’s nothing in the Democrat line 7, after the word ‘‘foreclosure’’ unanimous consent request, I think, alternative that would prevent a simi- adding the word ‘‘process,’’ and on the from all Members, and I think Mem- lar housing crisis like this in the fu- next line, after the words ‘‘foreclosed bers on both sides of the aisle have ture. Though improved, disclosure property,’’ add the word ‘‘mainte- some concerns about this. This wasn’t lender registration higher price is nance.’’ limited to Republican Members. There standard. The SPEAKER pro tempore. The were some Democratic members that The SPEAKER pro tempore. The Clerk will report the modification. had concerns as well. The OCC has indi- time of the gentlewoman from Illinois The Clerk read as follows: cated to us that this answers that con- cern. It doesn’t deprive them of their has expired. Modification of amendment No. 3 printed Mr. NEUGEBAUER. I yield the gen- in House Report 110–622: authority under the National Bank tlewoman an additional minute. Insert ‘‘process’’ after ‘‘foreclosure’’ and Act. Some of the banking institutions Mrs. BIGGERT. Our Republican al- strike ‘‘treatment’’ and insert ‘‘mainte- that were originally concerned about ternative would do more than put an nance’’. the amendment have indicated the that expensive Band-Aid on the housing The SPEAKER pro tempore. Is there this is language that they can live market. It begins to address the under- objection to the request of the gen- with. lying causes of the subprime mess. It tleman from Ohio? And just as a Republican Member of will ensure that borrowers have access Mr. PRICE of Georgia. Mr. Speaker, the House, I would say to the gen- to legitimate loans; that they under- reserving the right to object, I appre- tleman from Georgia, under his res- stand the terms of their loan, and that ciate my colleague on the committee ervation, that this is typically the they are taking a loan that they can for attempting to clarify an issue point in our debates where our distin- afford based on the actual value of the which is, I think, significantly prob- guished chairman of the Financial house. lematic. Services Committee skewers us as Re- We need to bring transparency and The issue of defining foreclosure publicans for being for States’ rights integrity to the homebuying process, time, and length, the particulars have on some days and being against States’ and we need to expand access to credit always been the purview of the States. rights on other days. It was my goal to

VerDate Mar 15 2010 15:08 Nov 08, 2010 Jkt 069102 PO 00000 Frm 00103 Fmt 0688 Sfmt 0634 E:\BR08\H08MY8.004 H08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD May 8, 2008 CONGRESSIONAL RECORD—HOUSE, Vol. 154, Pt. 6 8247 make sure that States’ rights were pre- the bill. But constructive isn’t always legal procedure. It is all process. So served on those things that they’ve al- the order of the day. saying ‘‘foreclosure process’’ appears, ways had the opportunity to regulate, So let me make this announcement on its face, to be redundant. and not impinge upon those, but also which I have also, in anticipation that However, the concern has been that recognizing that not all the best ideas there might be such an objection, al- States would add to the same section in terms of how to proceed on process though I had spoken to the ranking of their State ordinances, their State or maintenance necessarily emanate member and he told me he thought we statutes, other provisions that have from this Chamber. should go forward. It was my under- nothing to do with foreclosure proce- I thank the gentleman for yielding standing the gentleman from Ohio had dures, that have to do something to on his reservation. talked to the leadership on the Repub- make other provisions; and yet there Mr. PRICE of Georgia. Reclaiming lican side. They thought it should go would be the argument that all of my time, I appreciate those comments forward. So here is where we are. We those now are exempt, immune from and I would agree. I think that all of will vote on the Miller-LaTourette any argument of preemption. That is us, many of us in the House, many cer- amendment. I will guarantee to the certainly not what we intend, and I tainly on this side of the aisle, want to Members that when this goes forward lend my assurance to that of Mr. retain the States’ prerogative in the in any discussions we have with the FRANK that I will work to make sure area of foreclosure. And I would sug- Senate, we will accept this language, that the language that Mr. gest to the gentleman that his com- the Miller-LaTourette language, or if LATOURETTE just presented be the lan- ment about that, and the discussion someone comes up with a better idea, guage in the final bill. that’s gone on on the unanimous con- any other language that would be mu- Mr. NEUGEBAUER. Mr. Speaker, at sent request and the language therein, tually agreed upon by the gentleman this time it is my pleasure to yield 3 is something that ‘‘they can live with.’’ from Ohio and the gentleman from minutes to the gentleman from Florida And I would suggest, Mr. Speaker, North Carolina, the two bipartisan (Mr. FEENEY). Mr. FEENEY. Mr. Speaker, I thank that this probably should have been sponsors. my friend from Texas, and I would say dealt with in committee, and it might So while we don’t get the unanimous that people in my district, there are have been able to be clarified to a consent agreement, because some peo- some people who are hurting right much greater degree. My concern re- ple would rather there not be a resolu- about now as there are around the mains. tion over an objection, let me an- country. There are some people, in- Mr. FRANK of Massachusetts. Mr. nounce what may be a first, and I’m deed, who are homeowners in very bad not always the most technologically Speaker, I don’t know what the par- shape. Some, for example, were duped updated person; I don’t have a lot of liamentary status is. Has the gen- or lied to by people that loaned them the devices, but I do want to maybe be tleman objected or not? money. Some, a few, have lost their the pioneer of the virtual unanimous The SPEAKER pro tempore. Does the jobs. Some bought homes at the high of consent agreement. In good faith the gentleman from Georgia continue to the housing market, say $150,000, now gentleman from North Carolina and object? to find that their house is more like the gentleman from Ohio want to Mr. PRICE of Georgia. Yes, unless $120,000 or $100,000. And we all feel very amend this, they were denied unani- anybody else would like time on my sympathetic for those people. reservation, I will object. mous consent, but I am prepared to act But I don’t feel too terribly bad for The SPEAKER pro tempore. Objec- as if the body, and I have no question speculators that went in search of ways tion is heard. that it would have been adopted had we to get higher returns and take higher had a chance to vote on it, that it be b 1400 risks as an exchange, and that’s who is incorporated. And as we go forward, we getting bailed out today. I also don’t Mr. FRANK of Massachusetts. Mr. can guarantee Members that this lan- have complete sympathy when it Speaker, I regret that, but sometimes guage, if this bill is included, this will comes to using taxpayer money to re- people would rather see things not im- be included; and I can report that all of imburse people that, for example, put proved so they can then complain that the stakeholders, the community advo- zero money down. They didn’t buy that they weren’t improved. Fortunately in cacy groups, the banks, and the public home. They bought an option to buy this case, we are not constrained. officials at the State and local level be- the home. People that bought into a 3- The gentleman from North Carolina lieve that with the language that was percent teaser rate knowing that if the and the gentleman from Ohio said it worked out by the gentleman from interest rate went to 7 percent, they had not come to our attention fully Ohio and the gentleman from North would never be able to stay in that until after the committee markup. Carolina with the Comptroller of the home. People that used no documenta- What happened was that they came for- Currency, it will be fine. tion to demonstrate that they ever had ward with this amendment, and we So I wish we had got unanimous con- the chance to repay. They moved into heard some concerns from the Comp- sent, but I want to assure Members a home with an option to continue buy- troller of the Currency, as the gen- that in this process going forward, our ing it. They didn’t make the type of tleman from Ohio has said, and from failure to get real unanimous consent, commitment that most homeowners do bankers. as opposed to virtual unanimous con- to put 10 or 20 or 30 percent down and We then talked to the gentleman sent, will make no difference whatso- to make sure that they have a mort- from Ohio and the gentleman from ever. gage and a loan that they can pay North Carolina (Mr. MILLER), talked to On this point, let me yield 3 minutes under virtually any circumstance ex- the American Bankers Association, the to the gentleman from North Carolina cept for a disaster. Community Bankers Association, the to complete this conversation. Who does this bill help? Well, The Mortgage Bankers, the OCC, various of Mr. MILLER of North Carolina. Mr. Wall Street Journal made it very clear the advocacy groups, the State Attor- Speaker, I want to add my assurance to who this bill helps. This bill is a bail- neys General, the National Council of that of Mr. FRANK, as if anyone would out from American taxpayers of specu- State Legislators, and they came to an need that, but I think that this clari- lators and imprudent borrowers. Less agreement that adding these words fication really does not change the in- than 1 percent of borrowers whose would make this something that would tent of the statute. On its face, going homes, under this bill, would be eligi- work. from foreclosure to foreclosure process ble when all is said and done to be Now, the obvious thing in a construc- is redundant. Foreclosure is a process. helped. tive way would have been with the It is a legal procedure. It is a legal pro- I come today to speak on behalf of agreement of all of the stakeholders cedure by which real property given as the forgotten man. And that includes and the conversations among Members security for the payment of a debt is some 50 percent of Americans that ei- on both sides to be incorporated into seized and sold to pay the debt. It is a ther own their home or are renting.

VerDate Mar 15 2010 15:08 Nov 08, 2010 Jkt 069102 PO 00000 Frm 00104 Fmt 0688 Sfmt 0634 E:\BR08\H08MY8.004 H08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD 8248 CONGRESSIONAL RECORD—HOUSE, Vol. 154, Pt. 6 May 8, 2008 Every one of them watching today omy, to say nothing of what it does to Street and borrowers, some who may needs to know that they are bailing affected families and their commu- be innocent victims and some who may out irresponsible speculators and lend- nities. be guilty, is not the answer, and using ers and they will pay the price of this Preventing foreclosures for our vet- taxpayers’ money to do it is simply an bill. I come here to speak for the 90- erans will benefit all communities, and insult. plus, 95 percent of homeowners that are more importantly, by providing addi- Number one, we ought to have the making their payments on time, that tional counseling, resources to vet- facts before we actually take on a took out responsible loans. They need erans, it will enhance their ability to major piece of legislation. The Amer- to know that they are bailing out irre- make sound financial decisions during ican people need to know. Over half of sponsible speculators and people that these challenging times. Our soldiers America rents their homes or owns went in search of higher profits. need our help now, and toward that their home outright. Of those who have Investors who take advantage of this end, I’m pleased that the Foreclosure an active mortgage, 95 percent are program are basically getting a guar- Prevention Act would also assist re- making their mortgage payments on anteed gift from the government: 85 turning soldiers to avoid foreclosure by time. You have roughly 2 percent who percent of a loan that they know is not lengthening the time a lender must are in foreclosure. So now we’re being likely to perform. We are bailing out wait before starting the foreclosure asked essentially for 98 percent of people that will cherry-pick the very process from 3 months to 1 year fol- America to bail out 2 percent of Amer- worst loans in their portfolio. lowing a soldier’s return from military ica. Who is here speaking on behalf of the service. Now listen. On the investors’ side, forgotten man? Who is here speaking This act is not a handout. It is a hand these are a big bunch of boys and girls on behalf of 99 percent of Americans up. And I urge my colleagues to sup- on Wall Street who made decisions that did not behave irresponsibly, that port passage of this very important about what they should invest in. We did not behave foolishly, that ulti- legislation. know from the Financial Crimes En- mately will pay the price for this bill? Mr. NEUGEBAUER. Mr. Speaker, at forcement Network that mortgage Well, some of us in the minority are this time it is my pleasure to yield 5 fraud has been rampant: 1,400 percent here speaking on behalf of the forgot- minutes to my colleague and friend increase over the last 6 years; 42 per- ten man, which is 99 percent of Amer- from the great State of Texas (Mr. cent increase last year alone, with the ica. HENSARLING). majority of the fraud being borrowers And I would leave you with this: Mr. HENSARLING. I thank the gen- who lied about their income, about Chairman FRANK and the CBO and oth- tleman for yielding. their assets, about their occupancy; ers can estimate how much this bill I first come here somewhat amused and yet we have a bill to help them will cost these forgotten men and at the lecture that some of us received out. women, 99 percent of Americans who from the majority leader last evening Let’s hear from some of the people were not irresponsible who will pay the on abuse of process. I hear many of my who are being called upon to do the price. The answer is we don’t know. We colleagues on the other side of the aisle bailout. I often ask people who reside don’t have a crystal ball. If property say that we have a housing crisis and in the Fifth Congressional District of prices around the country take off by that this is one of the single most im- Texas that I have the honor of rep- another 50 percent and go up, there will portant bills to come to this floor in resenting what they think about legis- be no cost. If they go down by 30 per- this Congress. And yet here we are, as lation coming to the House floor. And cent, the cost will be closer to $3 bil- the minority, not being allowed any I hear from people like the Sadler fam- lion. amendments, not being allowed a sub- ily in Mesquite, Texas, and they write: Mr. FRANK of Massachusetts. Mr. stitute, not being allowed a motion to ‘‘Congressman, 3 years ago my hus- Speaker, I yield 2 minutes to Mr. recommit, not even being allowed to band and I faced the loss of our home KAGEN of Wisconsin. have an up-or-down vote on the bill. due to a decrease in the sales income. Mr. KAGEN. Mr. Speaker, I rise in And we’re accused of an abusive proc- We cut our expenses as much as pos- strong support of the Foreclosure Pre- ess? vention Act on which would address to- But enough of that. sible, but it was simply no longer af- day’s crisis in the housing market and Let’s look at the substance of this. fordable. We made the decision to put help many American families work out There is a great challenge in our hous- the home on the market before we their financing to avoid foreclosure, al- ing markets. There is no doubt about faced foreclosure. though it comes a little bit too late for it. And there are innocent people who ‘‘I am adamantly opposed to my tax the gentleman I talked to in Green Bay have suffered, and they deserve to be dollars going toward bailing anyone an hour ago who will be losing his helped. But this is the wrong plan. out of a mortgage crisis. If we didn’t home. What we need to do, Mr. Speaker, is, have to give up so much of our income As we are all aware, foreclosure rates number one, we have to have better to the government for taxes, we could have risen, Housing prices are declin- disclosure so that people understand have continued to afford our home.’’ ing, and too many families nationwide, the economic obligations they’re un- And what is the answer of the Demo- including many veterans who served us dertaking. We need to enforce the laws crat majority? Well, to the Sadler fam- with bravery, honor, and courage in that we have on the books. Mortgage ily in Mesquite, we’re going to increase Iraq and Afghanistan are overwhelmed fraud has been rampant on both the your taxes an extra $3,000 a year. with their monthly mortgage pay- borrowers’ side and on the lenders’ Mr. Speaker, I heard from Sergeant ments, many having fallen into the side. First Class Kenneth Adams of trap, the adjustable-rate mortgage We need to prevent the automatic Frankston, Texas. He writes: trap. tax increase that has been included in ‘‘Congressman, the mortgage crisis For these reasons, I commend Chair- the majority’s budget that’s going to Congress is trying to fix is an insult. man FRANK for graciously including a impose a $3,000-a-year on the average My house went unpainted until I could provision I offered that would provide American family tax increase phased return from serving in Iraq. I’m a Ser- funding in fiscal years 2008 and 2009 for in over the next 3 years. We need to do geant First Class in the United States grants to be administered to the Neigh- something about the skyrocketing cost Army with over 20 years active and re- borhood Reinvestment Corporation for of gasoline and food that has occurred serve service. Some day I would like to mortgage foreclosure and credit coun- on the watch of the majority. They’ve use my VA house-buying benefits, but seling for veterans recently returning been in charge of the economic policies what a fool I was to earn those type of from active duty. The mounting mort- of this country for almost 18 months. benefits when all I had to do was be ir- gage delinquencies and defaults pose a The shrinking American paycheck is responsible, overspend, and have the serious economic threat to our econ- our challenge. A huge bailout of Wall government bail me out.’’

VerDate Mar 15 2010 15:08 Nov 08, 2010 Jkt 069102 PO 00000 Frm 00105 Fmt 0688 Sfmt 0634 E:\BR08\H08MY8.004 H08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD May 8, 2008 CONGRESSIONAL RECORD—HOUSE, Vol. 154, Pt. 6 8249 b 1415 tous legislation would jump-start the market for assist individuals and families who might oth- That’s the answer that the Democrat mortgages by establishing a true market value erwise be living on the streets; and offer real majority brings to the floor, and it is for the securities backed by these loans. housing solutions for individuals with HIV/ an insult to 98 percent of Americans H.R. 3221 responds directly to the current AIDS. who did it right. housing crisis facing this country, while pro- While HUD is working to help Americans, Mr. Speaker, we should reject this viding the tools to prevent a repeat of these we must all do our part. legislation. problems. We need to pass H.R. 3221, and we need Mr. FRANK of Massachusetts. Mr. This is preeminently the time to speak the to continue to push in a bipartisan manner, Speaker, I yield 2 minutes to the gen- truth, the whole truth, frankly and boldly. Nor legislation that will ease gas and energy costs, tlewoman from Texas (Ms. JACKSON- need we shrink from honestly facing condi- the rising costs of food, and the ever-rising LEE). tions in our country today. This great Nation cost of health care. Ms. JACKSON-LEE of Texas. Mr. will endure as it has endured, will revive and We are spending billions of dollars on the Speaker, in 2007, Texas ranked fourth will prosper. As President Franklin Delano war in Iraq. I support our troops but I am dis- behind California, Florida and Illinois Roosevelt stated in 1933, ‘‘the only thing we mayed at how our support for a war that in pre-foreclosures. We’re reminded of have to fear is fear itself—nameless, unrea- needs to become less military and more diplo- Franklin Delano Roosevelt who said we soning, unjustified terror which paralyzes matic in nature, has disrupted our ability to have nothing to fear but fear itself. We needed efforts to convert retreat into ad- take care of things at home. certainly have to face fear and to be vance.’’ We must do just that. We must move CONCLUSION able to respond to this collapse in forward and that is exactly what H.R. 3221 Thank you Mr. Speaker for your leadership mortgages and our economic markets, seeks to do. in this area, I urge my colleagues to support by resolve and not fear. This legislation will begin to repair, not bail American families by supporting, H.R. 3221. And so this is not a bailout. It’s a out the economy, restoring confidence in the Mr. FEENEY. Mr. Speaker, I move I helping hand. It’s what Franklin Dela- markets, limiting the damage to families and be able to claim Mr. NEUGEBAUER’s no Roosevelt did to restore this coun- neighborhoods, and rejuvenating the commu- time in his temporary absence. try, and it worked. We survived. nities with new affordable housing. Ironically, The SPEAKER pro tempore (Mr. And so this tells us that we can sur- we celebrate the bailouts of yesteryear, when ROSS). The gentleman is recognized. vive, providing $10 billion in low-in- we believed that the power of the federal gov- Mr. FEENEY. Mr. Speaker, I yield 6 come tax credits for low-income home- ernment was needed to get the country out of minutes to a champion of the working owners and to also build rental prop- the Depression. family, Mr. GARRETT from New Jersey. erties. We also give a $7,500 tax credit Were the banking reform laws, emergency Mr. GARRETT of New Jersey. I for first time home buyers and a $700 relief programs, work relief programs, and ag- thank the gentleman. tax credit for those who are paying ricultural programs, the Social Security Act, I rise today to voice my opposition to property taxes. and programs to aid tenant farmers and mi- the underlying bill, as well as the un- And it does fix the GSEs. It does pro- grant workers—were these bailouts? Many of derlying unfairness that’s contained in vide an opportunity to get us out of the New Deal programs under President Roo- it. But before I speak about Title I, this mortgage foreclosure hold, but it sevelt were considered bailouts at that time. which does contain the opportunity to does it in the right way. It’s not scan- And yet, these programs brought our country use taxpayers’ dollars to insure up to dalous. It’s not illegal. It allows us to out of the Depression, rejuvenated our econ- $300 billion worth of new mortgages to be able to have the mortgage owner omy, and gave hope as we sought to deal bail out the Nation’s banking industry sell it back to FHA at a lower price; with the War overseas. and homeowners, those who made irre- the lower mortgage is then backed by TEXAS sponsible decisions, I want to briefly FHA, and it isn’t a gimmick. It’s not a In 2007, Texas ranked fourth behind Cali- discuss other parts of the bill. flipover. Any profit made by the home- fornia, Florida, and Illinois in pre-foreclosures. The chairman has been routinely owner comes back to the government if Last year, Texas held the top seat for active criticizing the administration for fail- the property is later sold. foreclosures. ing to do anything, he says, to address And we protect our disabled veterans, H.R. 3221 helps homeowners and only the current housing problems facing those who have fallen upon hard times. homeowners, not speculators or lenders. We the Nation, but you know, this admin- They can still be in the program even cannot continue to stand by as things get istration has been calling for the last if they are in bankruptcy. worse. Texas reported 13,829 properties en- couple of years for FHA reform and Mr. Speaker, this bill responds to the tering some stage of foreclosure in April, a new regulations for the GSEs. How- homeless and the helpless. What it does 16% increase from the previous month and ever, the new Democrat majority in say is those who are living from hand- the most foreclosure filings reported by any the House and the Senate has been un- to-hand, who are living in their par- state. The state documented the Nation’s third able to pass these important measures. ents’ homes, who have been thrown out highest state combined foreclosure rate—one You know, when you think about it, of their home, who have been thrown foreclosure filing for every 582 households. who knows how many people we could out because they’re in rental property, Many homeowners in my district are worried have already helped to stay in their this is a fix and the life and the spirit about missing their next house payment or homes and keep out of foreclosure if of what America is all about. their next home equity mortgage, or their inter- the Democrat leadership would have We don’t believe in giving a fish. We est rate going up. These families are under only forged an agreement already and believe in giving a fishing rod. This is stress and in constant fear of losing their passed those previous bills. an even-handed, balanced way between homes. It is unfortunate that due to the re- the House and the Senate to provide While this bill should not be the last word in fusal of the distinguished chairman and tax relief but also to be able to provide housing legislation, it is a great beginning. others in the majority to temporarily the construct and the infrastructure to This bill coupled with H.R. 5818, the Neighbor- forego some of their pet projects, such get our houses back together, along hood Stabilization Act, provides a good start- as the housing slush fund for ACORN with our stabilization bill that says ing point in providing Americans with relief. and La Raza and others, that these two we’re going to buy back foreclosed TEXAS AND WHAT HUD IS DOING important reforms have been held up homes and give them to people who In March, the Department of Housing and now for the last year-and-a-half. need them. Urban Development (HUD), announced the And now, with this new housing om- Is there anything wrong with Amer- Texas State Program and the cities of Hous- nibus bill before us, the chairman has ica rising to be higher angels and help- ton and New Braunfels will receive a total of once again refused to compromise, I ing our fellow brothers and sisters? $234,868,077 to support community develop- say, in good faith with the administra- Mr. Speaker, I rise in support of H.R. 3221, ment and produce more affordable housing. tion or the minority side and has in- the ‘‘American Housing Rescue and Fore- HUD’s annual funding will also provide down- cluded such pet projects once again. closure Prevention Act of 2008’’. This momen- payment assistance to first-time home buyers; And as an indication of the majority’s

VerDate Mar 15 2010 15:08 Nov 08, 2010 Jkt 069102 PO 00000 Frm 00106 Fmt 0688 Sfmt 0634 E:\BR08\H08MY8.004 H08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD 8250 CONGRESSIONAL RECORD—HOUSE, Vol. 154, Pt. 6 May 8, 2008 unwillingness to substantively com- ing by, struggling just to get enough reform and GSE reform and this Con- promise, the administration has issued money from every paycheck to pay- gress wouldn’t get it. Well, he misread a veto threat to this bill. check to afford their mortgage and, I the newspaper. Bryan Montgomery, the Over the last 6 months, the adminis- say, attain their 10 percent equity over head of the FHA, was quoted yesterday tration and HUD have been working on 3 years? Now, again, with this bill, as saying, if Congress had done what I a program, the FHA Secure. It’s to try we’re just giving that equity away to wanted in 2006, this wouldn’t have hap- to help American families who are in people who didn’t save, didn’t decide pened. It was the Republicans who were the right house but maybe not in the they would live within their means. in power in 2006. It was under the Re- right mortgage to stay in the house. Some say the reason this provision is publicans that GSE reform and FHA And this program has recently been ex- needed is that it will encourage people reform were frustrated. panded upon and has to date helped to stay in the houses. I believe, quite When we took power as the Demo- thousands of Americans to be able to frankly, the possibility of being kicked cratic majority, last year this Finan- stay in their homes. out of your house is incentive enough cial Services Committee and this But now our distinguished chairman to try to stay in your house. I don’t House passed both of those in forms and Democrat leadership are proposing have a problem with trying to help peo- very close to what the administration a plan that is really financially risky. ple, and this side of the aisle is trying wanted. In fact, the holdup on the GSE, It rewards irresponsible behavior and it to do it as well, to stay in their homes, and I know the gentleman thinks the mandates a loosing of FHA under- but I do have a problem with facili- notion of building affordable rental writing standards, and this is impor- tating arrangements in which they are housing with public help is, as he calls tant, that would put taxpayers on the given a 10 percent equity in their home it, a slush fund, and I think it’s that hook. with a mortgage that is insured by the lack of sympathy for affordable hous- So, when the chairman put together Federal Government, and that means ing that was one of the contributing what I say is an ill-conceived plan, he the American taxpayer. factors to getting people into homes noted originally that it would help up Our distinguished chairman was they couldn’t have owned. to 2 million homeowners. Well, unfor- quoted in the paper the other day, ‘‘We But the fact is that we sent the GSE tunately when CBO scored the bill, have done as much as possible to re- bill over to the Senate last year with a they determined it would only help spond responsibly with the public pol- very large majority in favor, and the 500,000, and that’s the same amount icy.’’ Senate hasn’t acted, partly because the they have oft criticized the administra- However, the legislation before us com- ranking Republican on the Senate com- tion plan is projected to help. So you’ll pletely disregards borrowers’ payment his- mittee hasn’t wanted to act. I know tories and credit scores when considering eli- excuse me if I find it a little hypo- the administration has been trying to gibility for this program. Borrowers could have critical here that those who believe persuade him to act. that the administration’s plan isn’t missed the majority of their monthly payments So the notion that the affordable over the life of the loan, yet these borrowers going to provide adequate help to housing trust fund, that’s slush fund would still be eligible for a government-backed struggling homeowners but that this for the gentleman from New Jersey, mortgage—and taxpayers would be on the new plan, which is forecasted to help housing for lower income people, for el- hook. An amendment was offered during the the exact same number of people, is derly people, for disabled people, that’s committee process to rectify this and it was somehow the perfect cure-all. slush fund, well, it was not that that soundly defeated by the Democrat majority Now, the bill before us for consider- held it up. It was the refusal appar- ation goes much further than this. This party. I have also heard a number of members on ently of the ranking member to act on bill actually pays people to stay in the other side of the aisle mention today their it. their houses. It would give every home- concerns about the Federal Reserve bailing So this is an example of the inac- owner who was in trouble and partici- out Bear Stearns to the tune of $29 billion. curate descriptions you’re getting. pates in this program a 10 percent eq- However, none of the members complaining Mr. GARRETT of New Jersey. Would uity stake in their home. Normally, de- or any democrats for that matter choose to the gentleman yield? pending on the specifics of your loan, it sign onto any of three letters I and a number Mr. FRANK of Massachusetts. I could take you or I 3 or 4 years for a of my Republican colleagues sent to Chairman yield. homeowner to make enough payments Mr. GARRETT of New Jersey. Just FRANK, Secretary Paulson, and Chairman for you to get a 10 percent equity Bernanke noting our strong concern. for one question. With regard to your stake. Now under this bill, we’re just For the last 17 months that the Democrat initial comment with regard to the going to give those people who are hav- majority has been in charge, the Administra- FHA reform and the GSE reform, my ing trouble making their payments. tion has been asking for a number of housing comment saying that it hasn’t been You know, I know things are bad in the reforms from Congress, none of which have done, isn’t it true that we’re 17 months mortgage markets right now, but are been delivered. Now, they want to say the Ad- into the year under Democrat leader- things so bad that we actually have to ministration has idly sat by and watched as ship? Have those bills passed this pay people to stay in the houses? the housing turmoil has continued to increase, House and have those bills made it to Where is the fairness in that pro- while it is actually the Democrat congress that the President’s desk? posal? The distinguished chairman ac- has yet to pass significant housing reforms Mr. FRANK of Massachusetts. No, knowledged during the committee con- that could have provided the Administration but the gentleman very inaccurately sideration that maybe this bill isn’t with the much needed tools to begin easing us blamed the Democrats. He forgot, fair in that sense. What about the per- out of this housing downturn. Bryan Montgomery said in 2006, the son who has been patiently sitting on The Chairman states that this a grand com- Republicans did it. the sidelines over the last several promise between the different groups involved I think one ought to be more accu- years, saving up, waiting for these in the discussion, but the only compromise I rate and less partisan in a description unsustainable high housing prices to can see is the one between he and his party, of reality. The fact is that those were come down to reality, come down to the big banks who made unsound loans, and defeated under the Republicans when earth? They’ve been paying their rent the special interests and trial lawyers that he was on the committee. Then, the every month, building up no equity stand to benefit. Democrats did pass them. whatsoever. What about those people? Mr. FRANK of Massachusetts. Mr. And as to the GSE bill, he said it was We’re now rewarding someone else who Speaker, first I wondered how I’d fill 2 the slush fund. I really like that has undertaken an irresponsible loan hours, but I could do that just respond- phrase, ‘‘slush fund.’’ That’s affordable and bought something, frankly, they ing to the inaccuracies we’ve just housing for people, for lower income just couldn’t afford. heard. Let me pick a couple. people. He said that’s what’s holding What about the person who took out The gentleman from New Jersey said up the GSE bill. That is not remotely a loan 3 years ago and he’s been scrap- that the administration wanted FHA true. The GSE bill was sent by us to

VerDate Mar 15 2010 15:08 Nov 08, 2010 Jkt 069102 PO 00000 Frm 00107 Fmt 0688 Sfmt 0634 E:\BR08\H08MY8.004 H08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD May 8, 2008 CONGRESSIONAL RECORD—HOUSE, Vol. 154, Pt. 6 8251 the Senate. They haven’t taken it up. will fall out of the middle class and home ownership has risen to record By the way, the affordable housing into poverty. levels. And how did we do that? Well, trust fund was in the Senate com- The policy failures that caused this we did it with the marketplace. mittee version when the Republicans problem, that led to this crisis, were in One of the things about this bill that were in power under the current rank- Washington, but State and local gov- bothers me is that we leave people with ing member when he was chairman. So ernment are having to deal with the the understanding that if their house that is just inaccurate. consequences. goes down, the government will come It is true they have been held up in Property rights, contracts and fore- in and make up the difference. We can’t the Senate as they were held up under closure proceedings are all matters of do that. People buy stocks, people buy the Republican leadership as well. We State law, not Federal law. The laws bonds, people buy other assets. They go are closer to passing them. I am con- vary from State to State, but every up, they go down. But it’s not the role fident that they are going to get passed State’s foreclosure law includes protec- of the Federal Government to create a fairly soon. We did finally get to some tions for the borrowers whose homes profit opportunity for people. are being seized and sold to pay the conversation on the FHA. One of the things that we know is mortgage. My objection was that the gentleman that, as the ranking member, I think, acted as if the world was created in b 1430 pointed out, is that we have 110 million January of 2007 and the Democrats re- State laws have notice requirements. people that are already meeting their fused to pass the bill, neglecting to They provide reasonable time for the own housing needs. Some of them are note that the head of the FHA himself families who are losing their homes to having problems, yes, they are, and put the blame much earlier when the find someplace else to live and to we’re sorry about that. We know about Republicans were in power. move; they limit the costs that they be 51 million people in America have I now yield 3 minutes to the gen- charged to homeowners; they allow mortgages. And a lot of those folks are tleman from North Carolina (Mr. MIL- homeowners to cure defaults in some taking second jobs and doing things to LER). circumstances. Many States limit or make sure that they meet their rental Mr. MILLER of North Carolina. Mr. prohibit deficiency judgments if the payments and meet their housing pay- Speaker, I wish to address specifically sale of the home is not enough to pay ments. And you look at the fact that the amendment that Mr. LATOURETTE off the debt, and on and on. And several 94, 95 percent of those people are mak- and I have offered. States, not surprisingly, are now con- ing those payments, not only are they Mr. Speaker, the worst of the fore- sidering additional laws to protect bor- making them in full, but they’re mak- closure crisis is yet to come. Mr. rowers who are losing their homes to ing them on time. FRANK just corrected incorrect factual foreclosure. What we can’t let the Federal Gov- assertions. Let me correct one as well. Recently, there has been some sug- ernment be is the piggy bank when Mr. FEENEY said a few minutes ago or gestion, some hint in the press and things don’t go exactly the way we gave the example of a 3 percent teaser elsewhere that if State and local gov- planned. I would like to go back over rate. Mr. Speaker, the typical initial ernments start getting underfoot, if my 30 years in the real estate business rate for the mortgages that are causing they start making a nuisance of them- and wish the Federal Government this problem was 81⁄2 percent, which is selves, the lending industry will argue could have been my piggy bank when I already well above the conventional that some of the especially annoying bought property that didn’t go in the prime rate. State laws, State foreclosure pro- right direction. Some of it went down, According to The Wall Street Jour- ceedings cannot be applied to mortgage nal, 55 percent of the people who got some of it went up. But what I do know holders or mortgage services that are is that it is important that the Federal those loans qualified for prime loans. affiliated with national banks or Their trust was betrayed. And the typ- Government not get into the business trusts. of trying to manipulate markets. ical adjustment after just 2 or 3 years There is no Federal foreclosure law, Markets are very efficient. In fact, was a 30 to 50 percent higher monthly but they argue that State foreclosure they’re a lot more powerful than the mortgage payment. Seventy percent proceedings could be preempted by Federal Government. I know everybody had prepayment penalties so people Federal laws that govern national here feels like they may be a powerful couldn’t get out and would have to pay banks and trusts. This amendment person and part of a powerful govern- when they got out, when they refi- clarifies that State laws and local ordi- ment, but quite honestly, these free nanced out of a loan they could not nances on foreclosure and foreclosed markets are much more powerful than possibly afford and the lender never in- properties are not preempted by Fed- the Federal Government and they’re tended they would afford because they eral law. required they come back and refinance Mr. NEUGEBAUER. Mr. Speaker, I much more efficient and they’re much again. yield myself 3 minutes. better able to deliver a housing market It’s not surprising that 3 million Mr. Speaker, I’ve spent nearly three that the American people can sustain homeowners with subprime loans are decades in the housing business. And and count on. expected to enter foreclosure pro- over those three decades the housing And so that’s one of the reasons that ceedings in the next couple of years market has gone up and the housing I rise in opposition to this bill today is, and 2 million of them will likely lose market has had its soft moments, and as I look across America—and I wish their homes. Another 40 million home- one of the soft moments we’re experi- you could have been at a town hall owners will see the value of their encing today. I liken it to the fact that meeting with me the other day where homes decline when other homes in the housing market has a cold. And people weren’t asking about mort- their neighborhood are foreclosed, and when you go to the doctor and you talk gages, Mr. Speaker, they were asking they will lose $200 billion in their home to the doctor about a cold, what does when is this Congress going to finally property values. he usually tell you? He says, you know, do something about getting a com- Credit Suisse now estimates that you’re going to have to let it run its prehensive energy strategy for Amer- there is another wave of foreclosures course. And quite honestly, over the ica? When are we going to open up the coming after this one as even more ex- years as these housing downturns have ability to drill in these other areas? otic, innovative mortgages go into de- happened, that exactly what we’ve had And when are we going to be able to fault. Credit Suisse estimates that in to do is let these markets run their come up with more nuclear power the next 5 years 12.7 percent of home- course. And what we do know is that plants? owners with mortgages are expected to when they run their course, that they Mr. Speaker, the American people lose their homes to foreclosure. come back a lot stronger. don’t want to make their neighbor’s Mr. Speaker, when those families We have just come off an unprece- payment when they’re having a hard lose their home to foreclosure most dented run in housing where the rise in time making their own.

VerDate Mar 15 2010 15:08 Nov 08, 2010 Jkt 069102 PO 00000 Frm 00108 Fmt 0688 Sfmt 0634 E:\BR08\H08MY8.004 H08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD 8252 CONGRESSIONAL RECORD—HOUSE, Vol. 154, Pt. 6 May 8, 2008 Mr. FRANK of Massachusetts. I yield Now, the other point I wanted to investments that did not quite turn out 3 minutes to a very hardworking mem- make is I have a copy in my hands here as planned. ber of the committee, the gentleman of the Congressional Budget Office co- Mr. Speaker, I offered an amendment from Georgia (Mr. SCOTT). assessment. Let’s put to bed once and in the Financial Services Committee Mr. SCOTT of Georgia. You know, for all, this is not $300 billion of the that is representative of my concerns. I’m wondering whether the Repub- taxpayers’ money. The taxpayers’ The amendment was not adopted, and licans are looking at the same America money that’s going to this, as clearly it was very simple. It was to strike the I’m looking at, and that the American as put out in this estimate, is $1.7 bil- section of the bill that prohibits FHA people are feeling. Between 7,000 and lion just to run the program, another from denying borrowers entry into the 8,000 American families file for fore- $300 million for administrative support, new FHA program solely on the basis closure every day. While we were up and the counseling of $400,000. And then of the mortgagor’s current FICO or here debating this bill the last day and Mrs. BIGGERT’s own program for coun- other credit scores, or any delinquency today over 15,000 American families seling of $300 million. That’s $2.7 mil- or default by the mortgagor. In South have filed for foreclosure. We have a lion of the taxpayers’ money. Carolina talk, Mr. Speaker, this crisis. Let’s do facts right. That’s why we amendment would have given the FHA Now, I want to deal with three points need to pass this bill, Mr. Speaker. Let the opportunity to use individual here right quick in my 3 minutes. The us stop fooling around and give the pieces of information on their own that first one is this: I think it is wrong as American people some relief. reveal the risk of borrowers defaulting. wrong can be for the other side to con- Mr. NEUGEBAUER. Mr. Speaker, I In offering the amendment, I wanted to tinually blame this crisis on the backs yield 3 minutes to the distinguished allow the FHA to protect the American of the American family. gentleman from South Carolina, a taxpayer by giving them every tool Let me read here for a moment from member of the House Financial Serv- available. this morning’s Hill newspaper, and I ices Committee, Mr. BARRETT. I understand the motivations of this hope that you all will read this as well, Mr. BARRETT of South Carolina. section of the bill to try to include as this article by J. Morton Davis of the Mr. Speaker, I rise to oppose this bill, many people as possible in the program Harvard Business School, an econo- which I think is unhelpful for the hous- meant to help them. And I understand mist. He tells you what the cause of ing market and unfair to the American it would be nice if we could help all of this is and who is to blame. taxpayer. these borrowers, but some may have Because mortgage originators them- Like many of my colleagues, I’m con- very bad credit scores that reflect irre- selves were not taking any of the risk cerned that this program will only dis- sponsible borrowing behavior. It’s not of holding this paper and were being tort housing prices, causing problems fair to the American taxpayer to insure well paid by providing mortgages to in the future by forcing the taxpayer to the loans of the riskiest borrowers who Wall Street banks that were packaging foot the bill. may not be able to pay their mortgages them, they became more aggressive, I have no doubt that some of the no matter what the terms of the loan. less demanding of the conditions tradi- lending practices in the beginning of Without a doubt, it’s never easy to tionally required upon them. The mort- the decade, Mr. Speaker, were irrespon- hear the stories of hardworking indi- gage brokers and bankers introduced a sible, and that the government should viduals and families losing their whole series of new criteria that made take certain steps to help the market homes, but I do not believe that more it easier to obtain a mortgage, they in- right itself and to prevent these prob- government intervention is the solu- troduced nothing down, no equity tion to our problems. And we should lems from recurring in the future. At mortgage, interest-only mortgage, no not allow the American taxpayers to the same time, I’m a firm believer in income, no job requirement as suffi- become the insurance policy for the fi- the power of the free market, and I be- cient basis to receive the mortgage. nancial decisions that did not turn out lieve that the housing market fun- That’s why we’re in the condition that as planned or for temporary market damentally reflects the laws of supply we’re in, not on the backs of the poor downturns. We should not punish those and demand. American family. hardworking and responsible American I’m always wary of government He goes on to say that ‘‘the changes taxpayers for the mistakes of a few. intervention in the markets and con- in lending practices actually trans- For these reasons, and others, I oppose cerned about unintended consequences. formed what were solid, safe, secure this legislation and ask my colleagues I fear that in our rush to help, we are mortgage loans into instruments that to do the same. were inferior even to the subprime overlooking the basic realities about Mr. FRANK of Massachusetts. Mr. mortgages. The cause of this can be today’s housing market and about the Speaker, I yield 4 minutes to the gen- cost of government spending. traced to the simple fact that the pro- tleman from California (Mr. GARY G. I think we can all agree that govern- viders of these mortgages did not end MILLER). up holding the paper and thus were far ment programs cost money, and this Mr. GARY G. MILLER of California. less concerned about the quality of the program has the potential to cost a Mr. Speaker, I rise in support of this loan.’’ Because nobody bothered to tremendous amount of money. And bill. look at or take issue with the enor- that money comes from the taxpayer, A lot of people are losing their home mously changed quality of these under- Mr. Speaker. Because, in reality, like in this country. In fact, in California, lying mortgages, not the Federal Re- the laws of supply and demand, deci- 500 families or more lose their home serve, they didn’t look at it, not the sions have consequences, and money every day. And that not only hurts Securities and Exchange Commission, has to come from somewhere. It’s not them, but the neighbors around them. not the rating agencies, not even we fair to ask my constituents from South Because of foreclosure, their home here in Congress, who surely should Carolina, who work hard and spend value drops weekly. have been more responsible and ac- wisely and pay, in my opinion, too I don’t support government bailouts. countable, and not the many Wall much tax money, to carry the burden I consider this bill we’re dealing with Street banks that were coining the for others’ financial mistakes. here far from a government bailout. If money, just as they did. The whole While I believe that people in need you look at the situation people are in world is now suffering the pain, the deserve our understanding and our today, people are suffering from outsized losses and the damage to its help, I trust in the ability of the free shrinking paychecks, other things go banking systems and economies. market to correct itself. And I think wrong in their life. But this loan is the Ladies and gentlemen of this Con- Americans know how best to spend most expensive FHA loan you will get. gress, it is not the American home- their money and should be trusted to Normally, a person can go to get an owner who is the cause of this, he is make their own financial decisions. I FHA loan, put 3 percent down, and the the victim, and it’s our responsibility also think that lenders have a responsi- government will basically be guaran- to provide the response for it. bility to live with the consequences of teeing 97 percent financing. Under this

VerDate Mar 15 2010 15:08 Nov 08, 2010 Jkt 069102 PO 00000 Frm 00109 Fmt 0688 Sfmt 0634 E:\BR08\H08MY8.004 H08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD May 8, 2008 CONGRESSIONAL RECORD—HOUSE, Vol. 154, Pt. 6 8253 loan, the lender has to be willing to we can’t trust the Secretary of Treas- would be on the hook. Americans don’t take 85 percent of current market ury, the Secretary of HUD and the believe that’s fair. value. Let me explain that so it makes Chairman of the Federal Reserve Board There has also been discussion about it understandable to most people. to come up with criteria based on in- the voluntary nature of this program. Let’s say you bought a house for come, assets, liability, payment his- However, Federal Reserve Board Gov- $580,000. The first trustee gets $5,000, tory, other criteria, debt-to-income ernor Randall Krozner said in our com- but current market value is $400,000 for ratio. If we can’t trust those three indi- mittee, ‘‘If Congress decides to move that house. The people are upside viduals to come up with a reasonable down this road, then it should carefully down, they can’t make the payment, it criteria under which this loan is made, consider the steps that should be taken is going into foreclosure. The lender I think we’re in trouble in this coun- to mitigate moral hazard, avoid ad- has an opportunity to allow another try. verse selection, and ensure that the fi- lender to buy them out with an FHA The problem some people have is nancial interests of the taxpayer are loan guarantee, and they’re willing to FHA exists. FHA loans are made today, adequately safeguarded.’’ take $340,000 for a loan they have that and FHA is guaranteeing, through in- But if you listen to the chairman, the market today is $400,000, and the surance premiums, these loans. Now, a this program isn’t so voluntary. At new loan against that house will be normal FHA insured premium costs a that same hearing, the chairman said, $360,000. Now, that sounds really good. borrower .55 percent per year, about ‘‘If we were to get this approach adopt- And we say the person is going to make half a percent. Under this new pro- ed but we don’t get much of a vol- a lot of money, it’s a bailout. But this gram, they have to pay 1.5 percent per untary buy into this, then I have to say is really more like a joint venture. And year to FHA to underwrite this guar- the response will probably be more reg- I don’t think CBO even scores this por- antee. That’s far from a giveaway. I ulation than people might like to see.’’ He went on in an article quoted yes- tion. If you sell the home the first can’t see anything in this FHA loan terday here in Washington to say, year, we either get 3 percent of the that’s a giveaway. ‘‘Meanwhile Chairman FRANK has loan amount or 100 percent of the prof- I rise in strong support of this bill. it on the home, whichever is greater. If warned the mortgage industry that if b 1445 it doesn’t support something like this they sell the second year, we either get plan this year, it could be in for far 3 percent, or 80 percent of the profit, Mr. NEUGEBAUER. Mr. Speaker, more regulation next year.’’ And that whichever is greater. The third year, 60 now it is my honor to recognize for 3 article went on: ‘‘If after this we con- percent. And if you hold it for 30 years minutes the distinguished gentleman tinue to get very little participation by and you sell that home, FHA gets 50 from Georgia (Mr. PRICE), who is also a servicers, I can guarantee you that the percent of the profit on that home. member of the Financial Services Com- servicer industry will look very dif- Now, I don’t know how most people mittee. ferent . . . If after everything we do in look at it, but that’s the worst FHA Mr. PRICE of Georgia. I thank the this cooperative way falls short, then loan you can get. It’s not a bailout, but gentleman for yielding. you are going to see legislation that it’s enabling a person who’s losing There’s a general sense, Mr. Speaker, puts some very real restrictions on the their home and a lender who says, well, that it’s this bill or nothing, and that certainly isn’t true. In fact, much has role of servicers.’’ if I foreclose it on $400,000, I might get All of a sudden, Mr. Speaker, this $380,000, $390,000. And what does that do been done. As has been talked about, the FHA Secure program has created program doesn’t sound so voluntary. It to a neighborhood? That home that seems to me that the chairman’s com- originally sold for $580,000, now the greater flexibility, helping hundreds of thousands stay in their homes. The ments will exacerbate the moral hazard market value for that home in that that the Federal Reserve Governor neighborhood is now $380,000, $390,000 or Hope Now program has already helped 1.4 million individuals stay in their warned us against. $400,000. In addition to the incentives, the home, getting borrowers and lenders This is more like a refi. It doesn’t im- chairman provides in his legislation for together. Loan limits have been in- pact the value of the homes in the com- holders of mortgages, and they are real creased, FHA, Fannie Mae, Freddie munity. It basically helps a person get and enticing. We have actual threats of Mac. The Federal Reserve has lowered in position where they can retain own- harmful regulation if they don’t sign interest rates. So the notion that the ership of their hone. And they’re not up dutifully for this program. That’s Federal Government has been unre- going to make a windfall profit for it. not voluntary. I would like to thank the chairman sponsive or slow to move is disingen- The SPEAKER pro tempore. The gen- for introducing language in this bill uous and is repeated as fact solely as tleman’s time has expired. that I worked on for 5 years, and that’s an excuse for the Democrats to con- Mr. NEUGEBAUER. Mr. Speaker, I raising conforming home limits in tinue outbidding each other on how yield the gentleman an additional 15 high-cost areas. Basically, Freddie and much taxpayer funding they can spend seconds. Fannie and FHA, in high-cost areas, or bail out imprudent borrowers who Mr. PRICE of Georgia. I thank the you can borrow a maximum of a either bought too much house or lend- gentleman. $730,000 loan from them today. The big- ers who were gladly willing to give I would suggest, Mr. Speaker, that gest problem we’ve had in the market- them the money. So much has been these threats do no favors to the Amer- place in recent years is people have done to date. ican taxpayers across our country. The been forced into jumbo loans. If you We have also heard the chairman and chairman is ensuring that we will get look at a GSE loan, that’s Freddie and others say that it’s unlikely that this full and active participation in this Fannie, compared to a jumbo loan will cost $300 billion, that it will only program, populated by the riskiest of today, you can generally save about 100 be $2.4 or $2.7 billion. Well, then why loans with enormous redefault rates basis points in interest rates. That’s a doesn’t the bill say that? It doesn’t, and cost to the American taxpayer of huge amount of payment a person can Mr. Speaker, because the taxpayer will up to $300 billion. Mr. Speaker, that’s save each year, enable a person to be be on the hook for risky loans and the irresponsible and it’s unwise. able to put away money in the future number may significantly rise, and Mr. FRANK of Massachusetts. Mr. for house payments if times get tough that’s because this bailout plan irre- Speaker, I yield 3 minutes to the gen- and basically own their own home. sponsibly disregards borrowers’ pay- tleman from North Carolina (Mr. Some people have said they don’t ment history and credit scores. Bor- WATT), member of our full committee. trust the Refinance Program Oversight rowers could have missed the majority Mr. WATT. Mr. Speaker, I was listen- Board because they don’t have any idea of their monthly payments over the ing to this debate, and the only thing I what the Board is going to implement life of the loan; yet those borrowers could be reminded of was a few years as far as criteria to qualify for this would still be eligible for a govern- ago when I had a very, very serious po- loan. I have a problem believing that ment-backed mortgage, and taxpayers litical campaign mounted against me

VerDate Mar 15 2010 15:08 Nov 08, 2010 Jkt 069102 PO 00000 Frm 00110 Fmt 0688 Sfmt 0634 E:\BR08\H08MY8.004 H08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD 8254 CONGRESSIONAL RECORD—HOUSE, Vol. 154, Pt. 6 May 8, 2008 and that had about $800,000 spent on the 98 percent. That means that 110 of my friends on the other side of the television ads telling people how ter- million households are meeting their aisle have expressed opposition to this rible I was, and at the end of the cam- obligations. This legislation under con- legislation. I think it’s telling that paign, my mother finally called me and sideration today would require that Federal Reserve Chairman Bernanke said, ‘‘Are you really that bad?’’ those 110 million families bail out the has expressed his support for the bill. I don’t recognize the bill that’s being lenders on Wall Street. And I will tell Mr. Speaker, the President and some described here on the floor. Title II and you it’s simply a case of robbing Peter of my Republican colleagues have title III we have overwhelmingly to pay Paul. called this plan a bailout. Clearly, the passed previously. Title V was over- We are sending the message to finan- party that claims to represent big busi- whelmingly passed out of the Financial cial institutions and Wall Street inves- ness doesn’t understand business. Services Committee. And all of the rep- tors that when those investors make This plan requires current mortgage resentations that are made about title poor choices and take ill-advised risks holders who choose to participate, not I seem to me to be just outrageously that the Federal Government will step taxpayers, to realize the loss of at least overstated. in and bail them out. That’s a bad deci- 15 percent. And by putting homeowners Like FHA is going to assume all of sion. In fact, this is a $300 billion tax- in mortgages with rates and payments this responsibility. This is a bailout. payer bailout that will cost the Amer- that we know they can afford, we are This is a voluntary program. FHA is ican taxpayer $5,000 for every fore- minimizing the risk of future defaults. not out soliciting any of these loans. closed loan that is dumped into the And by doing so, we are injecting con- They will evaluate the credit worthi- program. And make no mistake about fidence and liquidity back into credit ness of everyone who comes to them. it. They will be dumped into the pro- markets, thereby taking an important Like this will cost $300 billion. gram. And it’s not the homeowners step to ensure the economy has the There’s no way this program will who will control this. It will be the capital to begin digging ourselves out cost $300 billion unless every single lenders and servicers who will decide to of this recession. For anyone who calls this a bailout person who gets involved in it defaults take advantage of this for their own of risky investors, I would invite them and we get nothing out of a foreclosure personal advantage, the servicers and to come to my district and meet some or reclaiming of the property. the lenders. Like this is going to benefit specu- The one thing that we know for sure of the thousands of families who are in foreclosure. These are families with lators. is that those lenders and servicers are dreams and hopes. They, like everyone The bill explicitly says that this is only going to submit those loans that in this room, were trying as best they limited to homeowners, not people who they don’t believe will pay. The Amer- could to live the American Dream of have been speculators. I don’t know ican taxpayer will instead be punished. homeownership. These are not frauds what else we could say on that. The Ultimately, the real losers are the and cheats. They are firefighters and language is absolutely explicit that American taxpayers who are left to teachers who were forced into the only homeowners qualify for this pro- guarantee the loans that nobody else subprime mortgage market in order to gram. wants. Or maybe like the most outrageous realize their dream. Mr. Speaker, in the past couple of The only moral hazard before us one that I’ve heard today: Well, the months, I received several calls, let- today would be our failure to act. If we market will take care of this. ters, conversations I have had with my are to protect our economy, our fami- Well, the market is how we got here constituents, talking about the strug- lies, and the American Dream of home- in the first place. If the market had gles that they are making in order to ownership, pass this amendment today. been taking care of this, we wouldn’t pay their mortgage. They don’t want Mr. NEUGEBAUER. Mr. Speaker, it be in this crisis. We wouldn’t be having to have to pay somebody else’s mort- is my honor to introduce another dis- the problem that we are trying to gage. They are struggling enough to tinguished member of the Financial solve. And so this notion that the mar- make their ends meet with high gas Services Committee, the gentleman ket is somehow going to overnight cor- prices, the rising cost of health care. from Illinois (Mr. ROSKAM), and I yield rect itself and we will solve this prob- And I’m not advocating that we do to him 3 minutes. lem solely through market forces just nothing. In fact, I have been working Mr. ROSKAM. I thank the gentleman doesn’t make a lot of sense to me. But, very hard in my district with fore- for yielding. again, my mother started to question closure prevention seminars, working Mr. Speaker, have I ever told you after a while, after people said it over with the Hope Now alliance, which has about my dog, Max? I don’t think I and over and over again. Maybe my helped 1.4 million homeowners stay out have. Let me just take a minute and colleagues think if they say it enough, of foreclosure, keep their homes. tell you about Max. that this is terrible, they will convince These are the things that Congress Like a lot of us who are fathers of somebody. should be doing, is helping individuals younger children, I have four children, Mr. NEUGEBAUER. Mr. Speaker, it get through this crisis. We shouldn’t who approached me, Mr. Speaker, and is now my honor to introduce another have a massive bailout of lenders on begged me and begged me and begged member of the Financial Services Com- Wall Street. We shouldn’t bail out the me to get them a dog. And for years I mittee, the gentleman from North servicers. They took ill-advised risks, was able to avoid eye contact and was Carolina (Mr. MCHENRY), for 3 minutes. and as such, the losses should be car- able to keep an animal out of my Mr. MCHENRY. Mr. Speaker, there ried by them, not by my constituents house. But, finally, in a moment of are many good and decent people who who are paying on time. weakness, I said yes. are in financial distress right now Let’s oppose this legislation and do And a friend of mine, Mr. Speaker, across this country. Some with mort- what’s reasonable and right for the realized what was happening, and he gages they can’t afford. Some made taxpayer. pulled me aside and he said, ‘‘Look, if poor financial decisions. Some were Mr. FRANK of Massachusetts. Mr. you’re going to get a dog, realize this: victims of fraud. Some were simply Speaker, I yield 2 minutes to a very You get what you pet.’’ You get what speculators acting on their instincts. hardworking member of the committee you pet. So if a dog comes in and it’s But the reality is that most bor- who contributed to this bill, the gen- disobedient and you pet that dog and rowers are paying on time. They are tleman from Florida (Mr. MAHONEY). give it all kinds of affirmation, then making their mortgages; 92 percent of Mr. MAHONEY of Florida. Mr. guess what. It’s going to keep being borrowers are paying on time across Speaker, I rise today in strong support disobedient. And not being very wise, this country; 6 percent are late but not of the American Housing Rescue and we started to do that, and so now we’ve yet in foreclosure, and 2 percent are ac- Foreclosure Prevention Act. got a slightly out-of-control dog. tually in foreclosure. This bill is di- I must say that I’m extremely dis- Now, why do I mention Max? We’re rected to the 2 percent on the backs of appointed that the President and many on the verge of doing that same type of

VerDate Mar 15 2010 15:08 Nov 08, 2010 Jkt 069102 PO 00000 Frm 00111 Fmt 0688 Sfmt 0634 E:\BR08\H08MY8.004 H08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD May 8, 2008 CONGRESSIONAL RECORD—HOUSE, Vol. 154, Pt. 6 8255 conduct exactly to people who have Stearns. It was outrageous, putting the There is little question that after an fundamentally made some bad deci- taxpayers’ money—Mr. FLAKE says he historic housing boom in the first half sions. Let’s take the borrowers aside, did. Thirty billion dollars. We just of this decade we now are faced with a and I realize the chairman has worked talked about $2.5 billion for literally housing crisis. Foreclosures soared to hard, but let’s take the borrowers aside tens of thousands, hundreds of thou- an all-time high in the last quarter of and just put them in a different cat- sands, perhaps as many as 1 million 2007. According to Mortgage Bankers egory because what we’re going to be people. There is a crisis, and they have Association, more than 1.2 million doing today, in addition to helping bor- asked us to respond. properties received foreclosure notices rowers, is really bailing out lenders. I want to congratulate the chairman in 2007, up 75 percent from 2006. And 1 And I don’t think that’s an over- of our committee. I want to thank the in 33 homeowners is projected to be in characterization. I don’t think that’s ranking member of the committee. I foreclosure over the next 2 years. So an unfair way of looking at this. We want to thank all the members of the much for a great economy. are being told that lenders who were in committee for giving this their atten- This legislation, in short, will expand this, who are great advocates of the tion and trying to come up with a solu- the FHA program so that borrowers in free market when they’re making tion that works. Was this a partisan, danger of losing their homes can refi- money, they love the free market when divisive solution? Absolutely not. The nance into lower-cost, government-in- they’re making money, and now all of Secretary of the Treasury has said that sured mortgages that they can afford a sudden, they are coming to the Fed- this is a product that merits serious to repay. eral taxpayer and saying this has got- consideration. I’ve heard so much talk about a fam- For a time, I thought he was for it. I ten a little bit more complicated than ily-friendly Congress. Family values. am not sure now. There seems to be we thought, and now we want the tax- Caring about children. What can be some internal division within the ad- payers to come in and take care of this more family friendly than keeping from here out. It’s voluntary on the ministration. Mr. Bernanke, the head of the Federal Reserve, former chair- families in their homes? I think not part of the lenders, and think about too many things. how voluntary that would be. What a man of the Council of Economic Advis- But to be clear, this bill will mini- great invitation. These lenders go and ers, said that this is a good thing to do. mize taxpayer exposure. In fact, the they say here’s our pile of bad debt. So, Mr. Speaker, today through this Congressional Budget Office estimates Let’s take a haircut, 85 percent of the comprehensive landmark legislation, that the cost of putting homeowners value, shove that off to the FHA, which the American Housing Rescue and is pretty ill equipped, I might add, to Foreclosure Prevention Act, this House into affordable loans under the bill take on this obligation—let’s shove is going to act not to pet dogs but to would be not $30 billion, not $20 billion, that off to the taxpayer, and instead of help people. This House will take deci- not $10 billion, but a total of $2.7 bil- getting our heads chopped off as lend- sive action to keep hundreds of thou- lion. A few days in Iraq. A few days in ers, we’re just going to get a haircut. sands of families at risk of foreclosure Iraq. Not a month. A few days in Iraq. I think we can do a lot better, I in their homes and will help stabilize Contrary to the rhetoric coming from think, over a period of time. the housing markets across the Nation some, this bill is not a bailout for irre- that have been wracked by an unprece- sponsible lenders or borrowers. Only b 1500 dented drop in home values over the primary residences are eligible. Inves- There is a great willingness, Mr. last 2 years. tors and lenders must take significant Speaker, on this side of the aisle to try Make no mistake: The slumping losses, as they should. The owner of the and work creatively and to try and housing market has had negative, rip- old mortgage can only receive 85 per- work substantively on solutions. But I pling effects throughout our economy. cent of the current value of the home. think as we reflect back on this, in the It is not just people in houses that are And in return for an FHA guarantee chairman’s own words, it is going to having problems, but the subprime cri- on the mortgage, borrowers must share cost $5,000 for every defaulted mort- sis has affected our entire country and with the government any profit from gage that is assumed by the FHA, the availability of credit. And thus it is the resale of a refinanced home. The times a half million. That gets us to imperative that we take responsible, government will only have liability if the $2.5 billion figure that makes many reasonable steps such as this to the borrower defaults and the amount of us cringe. strengthen our weak economy and ulti- recovered in foreclosure is below the And I don’t think that those types of mately benefit not just those who are outstanding debt still owed. numbers should be allocated to lenders at risk of losing their homes, but every Furthermore, this legislation in- and bailing out lenders who made bad American. cludes tax provisions to expand refi- decisions. As Federal Reserve Chairman Ben nancing opportunities and to spur Mr. FRANK of Massachusetts. I yield Bernanke pointed out in a speech on home buying. 1 minute to the majority leader, the Monday, Monday, just a few days ago, It increases the VA home loan limit gentleman from Maryland. at Columbia University, ‘‘High rates of for high-cost housing areas, which we Mr. HOYER. I thank the gentleman delinquency and foreclosure can have for yielding. substantial spillover effects on the passed before, enabling veterans to This is not about petting dogs. This housing market, the financial markets, have more homeownership opportuni- is about people who are hurting. This is and the broader economy.’’ ties. We are having people come home trying to reach out to people who have And the answer is, don’t pet your from Iraq. We are going to be talking been savaged in many ways by this dog. It was bad behavior. Leave him about that. They may have lost their economy and the policies that have led alone. Or punish him. What we want to home because they went to Iraq and to an economy where average working do is help people do the right thing. they couldn’t keep their home. This incomes are down $1,000 and where gas- He continued: ‘‘Therefore, doing what helps them get back in a home. oline prices have exploded over 200 per- we can to avoid preventable fore- And it includes FHA modernization cent from $1.46 to $3.56. I would remind closures is not just in the interests of provisions that have already passed you that under the Clinton administra- lenders and borrowers, it’s in this House, as well as GSE reforms tion they went from $1.06 to $1.46, 5 everybody’s interest.’’ Those are such as strengthening the regulation of cents a year during the 8 years of the Bernanke’s words. Not Chairman Fannie Mae and Freddie Mac and rais- Clinton administration. They are going FRANK’s. Not mine. ing their loan limits to increase liquid- up 5 cents a week during this adminis- Mr. Speaker, that is precisely what ity in the mortgage market. tration. this legislation, the product of hard Chairman FRANK has talked to Sec- People are stretched. work by Chairman BARNEY FRANK and retary Paulson about that. I have I didn’t hear people come to this so many others, is designed to do: talked to Secretary Paulson about floor and say $30 billion for Bear Avoid preventable foreclosures. that. I am sure many of you on your

VerDate Mar 15 2010 15:08 Nov 08, 2010 Jkt 069102 PO 00000 Frm 00112 Fmt 0688 Sfmt 0634 E:\BR08\H08MY8.004 H08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD 8256 CONGRESSIONAL RECORD—HOUSE, Vol. 154, Pt. 6 May 8, 2008 side of the aisle have talked to Sec- Let’s be real here. The purpose of we know this engenders prejudice when retary Paulson about that. He thinks this legislation is to insulate political people see in some cases people are dis- this is absolutely essential. parties from risk. That is what we are abled. So it was there for that reason, I urge my colleagues on both sides of doing here. If we felt such a need to in- to protect people, to make sure that the aisle, let’s mitigate the effects of tervene here, we ought to remember we, the Federal Government, would the bursting of the housing bubble. what we did last September when I be- not, in any way, be discriminating Let’s prevent hundreds of thousands, lieve, if I remember right, we encour- against them and maybe therefore set and perhaps up to 1 million people, aged FHA to give no-money-down a good example for everybody else. from foreclosure and allow American loans. Why is it that we think that we Ms. BEAN. Mr. Chairman, there have families to stay in their homes through are so prescient here about what is been reports suggesting that this provi- this responsible legislation. going to happen? sion could be used as a placeholder for Let’s stabilize our housing market We can’t outguess the market. We a broader expansion of the Federal and help millions and millions of shouldn’t try to. We simply will delay bankruptcy laws. Can you clarify that homeowners who are not at risk of the bottom and delay and increase the this language will not be expanded in foreclosure, but whose neighbors are at dislocations that will occur when its conference to include a broader re- risk for foreclosure, and if they are politicians decide to allocate resources write of the Nation’s bankruptcy laws foreclosed upon, will see their home and capital rather than the markets. or to be used in conference for any values deteriorate. So the assistance is Mr. FRANK of Massachusetts. Mr. other redrafting of language encom- not just to those at risk of foreclosure, Speaker, I yield myself 30 seconds to passed under title 11 of the U.S. Code but to all those who are in commu- respond to the gentleman from Texas. other than this specific provision? Mr. FRANK of Massachusetts. If the nities where homes are at risk. He says, why isn’t the $2.7 written gentlewoman will yield, absolutely I Let’s pass this comprehensive, bipar- into the bill? It is, in effect, because it can guaranty that. I should be clear. I tisan legislation today and work to get is subject to appropriation, and no am cosponsor of the bill that would money will be spent until that is pro- it to the President’s desk without have provided a bankruptcy avenue for vided. The $300 billion is the number of delay. I am hopeful that the President primary residences. That is a separate will see fit to sign it. Vote ‘‘yes.’’ Vote mortgages that could be insured, up to issue as far as I am concerned. No, this ‘‘yes’’ on the American Housing Rescue that. We needed to put that number particular provision will not be a vehi- and Foreclosure Prevention Act of 2008. there before CBO could tell us how cle for that. Vote ‘‘yes’’ for the families of America. much it would cost. And written into The SPEAKER pro tempore. The Mr. HENSARLING. I yield myself 30 this bill before it becomes law and be- time of the gentlewoman from Illinois seconds. comes operational will be that $2.7 bil- has expired. As the distinguished majority leader lion figure. That is the way the process Mr. FRANK of Massachusetts. I yield said, this is about people hurting. He works. You get a CBO score, and then the gentlewoman 30 additional seconds. should know. Since his Democrat ma- you pay for it. 1515 jority came into office almost 18 I now yield 2 minutes to the gentle- b months ago, we know that we have a woman from Illinois, a very diligent I guarantee this provision will only $3,000 per family tax increase that has member of our committee. be what it is. If anybody wants to move been approved, gasoline at almost $4 a Ms. BEAN. Mr. Speaker, I rise to en- elsewhere, I might support that. But gallon, milk over $4 a gallon. Yes. This gage in a colloquy with the chairman entirely separate from this, this will is about people hurting, particularly of the Committee on Financial Serv- not be a vehicle. the 98 percent that rent, that have paid ices. In fact, I think it would be dishonor- off their mortgages and whose mort- Mr. Chairman, section 505 of title V able for anyone. We have had too many gages are current. of this legislation contains language examples of people trying to use vet- And if this bill is only going to cost pertaining to the treatment of disabled erans, and particularly disabled vet- the taxpayers $2.7 billion, why do we veterans in the bankruptcy code. erans, as a political stick to achieve see $300 billion written in the bill? Every Member of the House supports other objectives. I would find that to With that, I am happy to yield 2 min- ensuring that no disabled veteran is be an absolutely outrageous procedure, utes to the gentleman from Arizona, discriminated against for obtaining and I can guarantee you it will not happen. JEFF FLAKE. federally supported housing loans or Ms. BEAN. I thank the chairman for Mr. FLAKE. I thank the gentleman subsidies. the clarification. I would also like to for yielding. Mr. Chairman, can you clarify for me commend your leadership on producing The gentleman from Massachusetts why this provision was included in the a balanced bipartisan bill and allowing knows the respect I have for his knowl- bill, and why we need to protect dis- me to work with you during the com- edge of free market economics. He abled veterans from discrimination in mittee markup. often scolds us on this side of the aisle this legislation? The SPEAKER pro tempore. The when our rhetoric doesn’t match our Mr. FRANK of Massachusetts. If the time of the gentlewoman from Illinois actions. And he is often justified in gentlewoman will yield, I know some- has again expired. doing so. I have heard him quote Adam times conspiracy theories rattle Mr. FRANK of Massachusetts. Mr. Smith and Milton Friedman with the around this place. The reason we put in Speaker, I yield the gentlelady from Il- best of them. the legislation to protect disabled vet- linois an additional 30 seconds. That is why I was baffled to see this erans who had bankruptcy from being Ms. BEAN. Contrary to the earlier bill come to the floor from his com- excluded from this program is to pro- comments from our colleague in Texas, mittee, a bill that violates the same tect veterans, disabled veterans who I want to specifically acknowledge the principles that he has chastened us for have been in bankruptcy from being in inclusion of my amendment to disallow not recognizing. He was right then. this program. There were people who participation in this program to any- And he is inconsistent and wrong suggested that the sensitivity people one who had misstated their incomes today. would have in bankruptcy could be a on their original loan or been convicted This bill has ‘‘moral hazard’’ written problem. Now I will point out, by the of mortgage fraud. all over it. We know that a party insu- way, that thanks to some very good On the whole, this legislation will lated from risk behaves differently amendments by the gentleman from help stabilize the housing market and than a party that is fully exposed to Georgia (Mr. MARSHALL) who has dealt economy while not creating any uncer- risk. The truth is here we are insu- with this problem in a more general tainty in legal contracts by reducing lating home buyers and home owners way, and he is a bankruptcy expert— risks to lenders who keep qualified bor- from risk. And we will simply prolong from the law side not the subject side. rowers in their homes instead of fore- the housing crisis by doing so. But we thought with disabled veterans, closing.

VerDate Mar 15 2010 15:08 Nov 08, 2010 Jkt 069102 PO 00000 Frm 00113 Fmt 0688 Sfmt 0634 E:\BR08\H08MY8.004 H08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD May 8, 2008 CONGRESSIONAL RECORD—HOUSE, Vol. 154, Pt. 6 8257 Mr. HENSARLING. Mr. Speaker, Where was the argument about Bear However, since these increases are may I inquire how much time is re- Stearns that was never brought to the only temporary, it is clear that making maining on each side. floor? I have heard about a letter that them permanent will have beneficial The SPEAKER pro tempore. The gen- has been circulated. Why didn’t you effects for the housing market. I intro- tleman from Texas has 61⁄2 minutes re- bring the argument to the floor? Let’s duced the Homeowner Opportunity Act maining. The gentleman from Massa- talk about the Bear facts, the Bear to permanently raise the loan limits, chusetts has 261⁄2 minutes remaining. Stearns facts. Bear Stearns got $29 bil- and I am pleased that today’s legisla- Mr. HENSARLING. Mr. Speaker, I lion in a bailout and a $13 billion loan. tion includes my bill. wish to reserve the balance of my time. So if you really talk about the Bear I want to thank Chairman FRANK for Mr. FRANK of Massachusetts. Mr. facts, the Bear Stearns facts, you are all of his support and assistance. This Speaker, I yield 2 minutes to the gen- talking about $42 billion. We live in a change will benefit my constituents tleman from Georgia (Mr. MARSHALL). world where it is not enough for things and the entire country. Mr. MARSHALL. Thank you, Mr. to be right, they must look right. Mr. NEUGEBAUER. Mr. Speaker, I Chairman. It doesn’t look right for this country continue to reserve. Mr. Speaker, I had originally planned to continually bail out major corpora- Mr. FRANK of Massachusetts. Mr. to talk about something else alto- tions. When the American people, little Speaker, I yield 2 minutes to a very ac- gether, but it’s the nature of the de- people as we sometimes call them tive member of the committee, the bate that causes me to simply say I do here—they are big in my heart—but gentleman from Colorado (Mr. view this as a bailout of sorts, but it’s the little person needs some help, we PERLMUTTER). Mr. PERLMUTTER. I just want to not a bailout for the borrowers, it’s not don’t find it within our hearts and our thank you and the committee for a bailout for the lenders. power to help them. If you understand the bill, you under- We have the ability to make a dif- bringing a very focused piece of legisla- stand that actually the deals that the ference in the lives of people today. tion to the House floor. Mr. Speaker, to my friends from borrowers get are not particularly This is why I am encouraging my col- Texas, who have heard stories that this good. The deals that the lenders get are leagues to vote for this bill. is a bailout, this is no bailout. This is not particularly good. Mr. HENSARLING. Mr. Speaker, I about Strasbourg, Colorado, where This is intended, if it works, as a continue to reserve. there have been foreclosures around a bailout generally for all those innocent Mr. FRANK of Massachusetts. Mr. neighborhood, and one person trying to homeowners and taxpayers who have Speaker, I yield 2 minutes to the gen- sell their property can no longer do been dragged into this mess in part, be- tleman who helped put this bill to- that because the value of their house is cause of our failure to regulate pre- gether, the gentleman from California less than their mortgage. They are in- viously, in part because of the incom- (Mr. MCNERNEY). nocent. They didn’t deserve this. petence, virtually, the pitiful perform- Mr. MCNERNEY. Mr. Speaker, I rep- Secondly in Edgewater, Colorado, ance the of the rating agencies. resent Stockton, California, which un- where the lender, the appraiser and the As a result, an awful lot of people, fortunately has the highest foreclosure building owner got into cahoots, and a and our economy, are being hurt. I rates in the country. Many families in young couple buys a condominium, and view, this personally, as a bailout for northern California have lost their now the properties around them are the economy, with an incidental effect homes and the foreclosures have lead foreclosed. They are going to lose this of avoiding foreclosures in individual to personal hardships, community in- property. They need assistance. They cases—and that’s nice. It’s nice to help stability and national economic risk. are innocent. They deserve some help people out—but I am not voting for When my constituents asked me from this government. this thing because it’s helping individ- what Congress was doing to fix the Same thing in Commerce City, Colo- uals out and happens to help a few economy, I told them we are pushing to rado. I heard all of these stories last lenders out. It’s not a bailout for those create family-wage jobs and put money night on a telephone town hall meeting folks. In my view it’s a bailout for the back in people’s pockets. Today we are while we were debating the Neighbor- entire economy and all of these people building on these efforts by considering hood Stabilization Act. That’s what that have been dragged into it. legislation that will provide fiscally re- this bill is about. It’s about the com- Mr. HENSARLING. Mr. Speaker, I re- sponsible options for families strug- munity as a whole. serve the balance of my time. gling to stay in their homes. Mr. MARSHALL from Georgia under- Mr. FRANK of Massachusetts. I yield Last December I hosted a workshop stands what this bill is about. It’s 3 minutes to the gentleman from Texas for foreclosures in Stockton with my about looking after our neighborhoods (Mr. AL GREEN), a very active member colleague, DENNIS CARDOZA, to provide and protecting our neighborhoods and of our committee. housing counseling to local families. averting 500,000 foreclosures across this Mr. AL GREEN of Texas. I thank the While we expected the turnout to be country. chairman for the time, and I thank the high, participants started lining up 2 Our neighborhoods, our cities, our chairman for his tireless efforts to hours early and, ultimately, more than towns are going to pay for this if the bring this to the floor. I question this 500 people showed up. Federal Government doesn’t assist in moral hazard argument. I heard heart-breaking stories from some fashion. This is a nationwide I question it because I have to ask my constituents, and this is just one problem. The Nation has to stand up. myself, where was the moral hazard single illustration of why today’s legis- We have to deal with this. This bill when we bailed out Penn Central? Penn lation is so important. One of the big- does it in so many ways, and I just ap- Central got more than laissez faire. gest challenges facing the housing mar- preciated coming to the floor. Penn Central got more than market ket is in the high-cost States, like Vote ‘‘yes’’ on this bill. forces. Penn Central got $7 billion in a California, that housing programs have Mr. NEUGEBAUER. Mr. Speaker, I bailout. not kept pace with the times. Unreal- continue to reserve my time. Where was the moral hazard when we istically low limits for Fannie Mae, Mr. FRANK of Massachusetts. Mr. bailed out Lockheed Martin, $250 mil- Freddie Mac and FHA mean people liv- Speaker, I now yield 2 minutes to the lion? Franklin National Bank, $1.7 bil- ing in the high-cost States have not chairwoman of the Housing Sub- lion bailout. For the good of the coun- fully benefited from these programs. committee, who makes her second ap- try, we bailed out Chrysler at the tune The economic stimulus package, pearance today, having carried through of $1.5 billion; Continental Illinois, $4.5 temporary loan limit increase to passage of a very important bill earlier billion; Farm Credit System, $4.5 bil- $730,000, raising the loan limit, injects today, the gentlewoman from Cali- lion; First Republic Bank, $1 billion. liquidity into the mortgage market to fornia (Ms. WATERS). Major airlines got $5 billion, the steel provide access to credit and opens new Ms. WATERS. I would first like to companies got $7 billion. opportunities for refinancing. thank our chairman, BARNEY FRANK,

VerDate Mar 15 2010 15:08 Nov 08, 2010 Jkt 069102 PO 00000 Frm 00114 Fmt 0688 Sfmt 0634 E:\BR08\H08MY8.004 H08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD 8258 CONGRESSIONAL RECORD—HOUSE, Vol. 154, Pt. 6 May 8, 2008 for the leadership that he has provided define and protect against predatory Third, and most importantly, this is on dealing with a serious problem in lending practices. I have seen interest not just about the homeowner or the America. I would like to thank the rates and loan products that seem too mortgage lender, this is about all of us. Members once more for the support good to be true. What we have seen is not just harming that they gave me on the Neighborhood Unfortunately, we have seen they the housing and manufacturing indus- Stabilization Act that we passed today. were too good to be true. There are tries, it has seeped over into the bond That, coupled with what is being done many components of this bill, which I market for municipal bonds and even now, will go a long way to providing think are excellent. Enacting those re- for education to where, because of the real assistance to our cities, to our forms now would have a huge impact exposure of bond insurers, we cannot counties, to our States and to our citi- on the housing market and be helpful have bonds that are being given in zens. to American families. these categories. So, therefore, I think I know that it has been said over and My concerns with today’s package in- very highly of this bill. over again today that people are suf- clude the establishment of a new, af- I think this bill is done in the right fering, that there are people who got fordable housing fund and a $300 billion way. It is providing relief to actual, into these loans that did not under- Federal loan guarantee program. A real people, those living in homes, not stand what a no-doc loan, a no interest lender with troubled loans could con- speculators. Second, it steps over and rate loan was, an ARM that was going tact those homeowners, offer a feder- it doesn’t give any bailout to lenders. to reset within 6 months, 1 year or 2 ally backed loan and refinance at a It says you must write down your loans years, and that the mortgage would loss. and you must pay into a reserve fund double, triple or quadruple. But now he has moved that loan from and do closing costs. They are innocent, hardworking a complete loss to 85 percent current Most importantly, it has the govern- Americans out there every day who value that will be guaranteed by the ment reaping the rewards when the simply want to live the American Federal Government. He now has no houses inevitably go back up in value. Dream. Many of them were steered into reason to work with that borrower. I think this is great for the economy. these loans because there was this big, Neighbor A bought at the height of the Mr. Speaker, I would ask one thing market. He struggles but pays. Neigh- to consider as we go forward. I am big housing bubble. We had these local initiators of loans bor B negotiates 85 percent of current taken by incentivizing people to come through our banks and our mortgage value, a huge impact on the value of forward. And as someone on the other side said, incentivizing them even by brokers who discovered that they could surrounding properties. This is a voluntary program. Can’t being exposed to more risk. The CBO package them, they could securitize we develop incentives for the private said that out of the 2.8 million fore- them, they would be invested in Wall sector and not obligate the American closures expected to occur if nothing Street, and the Wall Street people in- taxpayers with $300 billion in loan happens between now and 2013, about vested mightily in them, and now the guarantees? There are several things 500,000 loans will be refinanced. services have them all. The only thing that are currently making a difference. CBO believes that many original and sec- that the services can do is foreclose on The FHA Secure loan program, HOPE ondary lenders will be reluctant to participate. these properties. NOW, an alliance to prevent fore- This is a problem that must be addressed. Well, we can do something about it. I closure through outreach to delinquent To be most effective, I believe that there must don’t know why we have to argue and borrowers. Fannie Mae is currently be greater incentives for the original lien hold- fight about whether or not we can help working on a streamlined short-sale ers—who take the haircut up front—to have the American people. They sent us here program to allow the sale of properties the option to share in some portion of potential to look after their best interests. that are overmortgaged. profits on resale. I don’t understand why anybody can For those lenders willing to take a bigger call this a bailout when, in fact, no- b 1530 piece of the risk upfront (beyond the 85 per- body has said anything about the bail- The fact is, one out of two people cent of current market value limit in the bill), out of the almost $30 billion for Bear never contact their lender for help. there should be added incentive to participate Stearns. If we can help Wall Street, we Both the administration and the pri- in the upside potential. certainly can help the people who vote vate sector need to explain what is Overall, I support this bill because it ad- for us every day and who sent us here. available. Neither has done a good job. dresses many of the issues that need to be We help people all over this Nation in Mr. FRANK of Massachusetts. Mr. solved quickly. But I believe that more needs different ways. Some people are con- Speaker, I yield 2 minutes to the gen- to be done to provide proper incentives to en- fronted with a hurricane, or a flood or tleman from Pennsylvania (Mr. sure that lenders, who will play a critical role an earthquake. American citizens ex- SESTAK). in the economic and housing recovery, will pect us to be there for the citizens Mr. SESTAK. Mr. Speaker, much has fully participate, and I am prepared to work when we are needed in different ways. been said about how we got into this with the Chairman and House leadership for This is a different way. situation, although someone said it an appropriate resolution. I ask everyone to support the bill. best, I thought: too little oversight, Mr. NEUGEBAUER. Mr. Speaker, I Mr. NEUGEBAUER. Mr. Speaker, it’s too much greed, too little under- continue to reserve. my honor now to yield 2 minutes to the standing. Mr. FRANK of Massachusetts. Mr. gentlewoman from Virginia (Mrs. But there are several things we do Speaker, I yield 2 minutes to the gen- DRAKE), who has an extensive amount understand. There is no single cause tleman from Texas (Mr. HINOJOSA). of experience in the housing industry for why we got into this housing crisis, Mr. HINOJOSA. Mr. Speaker, I rise and brings great expertise to this proc- so there is no single solution. today in strong support of the under- ess. But second, we must act now. This lying bill, H.R. 3221, the American Mrs. DRAKE. Mr. Speaker, housing is March, there was a 57 percent increase Housing Rescue and Foreclosure Pre- a very complex issue. We are talking in the number of defaults than the pre- vention Act of 2008, and in particular about a person’s home, real people with vious March a year ago. And of all of H.R. 5830, the FHA Housing Stabiliza- a real problem. Prior to Congress I was the adjustable rate mortgages that will tion and Homeownership Retention Act a realtor for over 20 years. be reset this year to a higher interest of 2008, which is part of this housing I have worked with many families to rate, 80 percent are the subprime cat- rescue package. help them realize their dream of home- egory. Those subprime categories are I am proud to be a cosponsor of H.R. ownership. I have served as chairman at a delinquency twice that of a fixed 5830. I believe that it is a well-balanced of the Virginia Housing Study Commis- rate. In short, even before the interest measure that will go a long way to- sion. I have seen good markets and bad rates go up, we have so many people wards turning around the housing cri- and many changes to the mortgage in- who are already in trouble with their sis and address the issues that have re- dustry. I have struggled with how to loans. sulted in a nationwide economic crisis.

VerDate Mar 15 2010 15:08 Nov 08, 2010 Jkt 069102 PO 00000 Frm 00115 Fmt 0688 Sfmt 0634 E:\BR08\H08MY8.004 H08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD May 8, 2008 CONGRESSIONAL RECORD—HOUSE, Vol. 154, Pt. 6 8259 Mr. Speaker, I am especially pleased sharing the pain. By requiring that Mrs. BLACKBURN. Mr. Speaker, I with title II of the bill which estab- people who are working in order to be heard from one of my constituents who lishes a long-needed Office of Housing eligible for this program are paying at said they felt like this bill was not Counseling within the Department of least 35 percent of their income in really about rescuing homeowners, Housing and Urban Development. I order to be eligible, we are exercising they felt like it was another attempt commend Chairman FRANK and Rank- responsibility. at wealth redistribution. They felt that ing Member WATERS for including it in What this debate is really about is a the risk and the costs that are borne their bill. matter of values. The values being ex- and should be borne by irresponsible I sincerely appreciate the fact that pounded on the other side of this de- lenders, investors, and borrowers are community-based organizations with bate are absolutely astounding, and going to end up being transferred to expertise in the field of housing coun- nothing illustrates it better than a the Federal Government and thereby seling will be given a voice in the de- movie I love, ‘‘It’s a Wonderful Life.’’ to the American taxpayer once again. velopment of such policies. I am George Bailey was the hero of that And this time, it is to the tune of $300 pleased that the bill provides for the movie, and he was dealing with a hard- billion. building of capacity to provide housing hearted old man named Mr. Potter. Mr. What the bill does is the good actors, counseling services in areas that lack Potter said to George Bailey as he was the 92 percent of all mortgage holders sufficient services such as large parts trying to save American households, who are paying their mortgage on of my district in the Rio Grande Valley ‘‘Have you put any real pressure on time, they are going to end up being and in rural America in general. these people to pay their mortgages?’’ liable for the irresponsible actions of Moreover, I applaud Chairman FRANK And George Bailey relied, ‘‘Times are lenders and speculators. The way my and Congresswoman WATERS for in- bad, Mr. Potter. A lot of these people constituencies see it, this is a risky cluding in the bill the authorization of are out of work.’’ business. This Congress should not $3 million for public service announce- ‘‘Then foreclose.’’ send a message that it is acceptable to ments as part of the act’s national pub- George Bailey answers, ‘‘I can’t do give up on an obligation because you’re lic service multimedia campaign. This that. These families have children.’’ going to have a government buyout or ‘‘Not my children,’’ said Mr. Potter. campaign will help persons facing Well, what we hear from the other a bailout and you are going to be able mortgage foreclosure, elderly persons, side is: not my children, these folks are to cut your personal losses. Last week I did a seminar in my dis- persons who face language barriers, irresponsible, throw them out. and low-income persons. We clearly have the upper hand in trict. I worked with some government I want to take this opportunity to this debate. and private sector initiatives such as thank them for increasing the avail- Mr. NEUGEBAUER. Mr. Speaker, I Hope Now, working to help home- ability, affordability, and quality of continue to reserve. owners weather the storm, to get the housing in rural America. And I believe Mr. FRANK of Massachusetts. Mr. information to them that they needed. this bill will do more of the same. Speaker, I yield 1 minute to the gentle- Mr. Speaker, that is what we should Mr. Speaker, I believe the product woman from California (Ms. LEE). be doing, educating homeowners on the Chairman FRANK and Congresswoman Ms. LEE. Mr. Speaker, let me thank options at their disposal, as opposed to WATERS have brought to the floor will Chairman FRANK and Chairwoman WA- passing measures that reward reckless- result in more homeowners remaining TERS for bringing this badly needed leg- ness and provide a safety net for irre- in their homes and help stabilize the islation to the floor today. Millions of sponsibility. Congress does not need to housing market. I strongly urge my families in America are seeing their bail out the housing market, it needs colleagues to vote in favor of this bill. dream of homeownership turning into a to encourage a kick start. I hope that Mr. NEUGEBAUER. Mr. Speaker, nightmare. Foreclosure rates have my colleagues will join me and that to- may I inquire as to the time remain- reached crisis levels. In California and gether we will vote this bill down. ing. in many parts of my district, too many Mr. FRANK of Massachusetts. I yield The SPEAKER pro tempore. The gen- families are facing devastation, and en- 2 minutes to another very active mem- tleman from Texas has 41⁄2 minutes re- tire neighborhoods are on the brink of ber of our committee who has been maining. The gentleman from Massa- collapse. very active on the loan issue, the gen- chusetts has 131⁄2 minutes. Homeownership has been the primary tleman from California (Mr. SHERMAN). Mr. NEUGEBAUER. Mr. Speaker, I means that most Americans have to Mr. SHERMAN. Mr. Speaker, the continue to reserve. accumulate any kind of wealth, to send facts are these: Homeowners have Mr. FRANK of Massachusetts. Mr. their kids to college, to start a small signed mortgages where they can’t af- Speaker, I yield 2 minutes to the gen- business, or to do whatever they want ford to make the payments, especially tleman from Oregon (Mr. WU). to do to be part of the American as they are adjusted upwards. We need Mr. WU. Mr. Speaker, last year 1.5 dream. to write-down the principal amount to million American households entered I want to thank Chairman FRANK for something that these good homeowners foreclosure, and this year the number including language in this legislation can afford. But we are told ‘‘don’t bail of American families in danger of los- which I introduced with Senator out the lenders.’’ ing their homes could be as high as 2 MCCASKILL to address the Reverse There are two ways to write-down million. These foreclosures could re- Mortgage Proceeds Protection Act the principal amount of a loan: an in- duce overall economic activity by $166 which protects seniors from losing voluntary way through the bankruptcy billion this year as the effects of the their homes. court, and we had a bill before this mortgage crisis spill over into other We are beginning to see some of the House which authorized the bank- sectors of the economy. same abuses in the advertising and ruptcy court in very limited cir- In my State of Oregon, the fore- high-pressure sales of reverse mort- cumstances, very tailored, to write- closure rate among subprime borrowers gages as we saw in the subprime mort- down the balance of the loan. Don’t increased by 28 percent in the fourth gage crisis. These provisions will en- bail out the lender, just tell the lender quarter of 2007. Over 5,000 Oregon fami- sure that vulnerable seniors are fully they have to take less. That bill is not lies are currently in foreclosure, more informed of hidden costs and pitfalls of going to pass. It is opposed by Repub- than half of whom hold subprime mort- reverse mortgages before they sign. licans in the Senate. gages. Mr. NEUGEBAUER. Mr. Speaker, it The second way is a voluntary way. But this debate is not about facts and is my honor to introduce the gentle- You make a fair offer to the lender statistics. If it were, it would be over woman from Tennessee (Mrs. that, if they will write-down the prin- by now. By requiring that the holders BLACKBURN) who is also on the Com- cipal amount, then they will get a of debt take a haircut down to 85 per- mittee on Financial Services, and I guarantee of that lesser amount from cent of current market value, we are yield 2 minutes to her. the government—so at least they will

VerDate Mar 15 2010 15:08 Nov 08, 2010 Jkt 069102 PO 00000 Frm 00116 Fmt 0688 Sfmt 0634 E:\BR08\H08MY8.004 H08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD 8260 CONGRESSIONAL RECORD—HOUSE, Vol. 154, Pt. 6 May 8, 2008 get paid something. Now we are told to Mr. FRANK of Massachusetts. I in- This is a bad bill. I encourage Mem- vote against this bill because it bails tend to close with our remaining time bers to vote against this bill. I’m sorry. out lenders. as our last speaker. We can’t vote against it. Vote against Some are giving hypocrisy a bad Mr. NEUGEBAUER. Mr. Speaker, I the amendments. name. rise in strong opposition to this bill. I Mr. FRANK of Massachusetts. How If you are going to help homeowners, think we have had a good discussion much time is there remaining, Mr. you have to write-down the balance of here today. Unfortunately, it was a dis- Speaker? the loan. And people come to this floor cussion only and there was not oppor- The SPEAKER pro tempore (Mr. and they say well, we can’t do it the tunity for our side, or really any other JACKSON of Illinois). The gentleman voluntary way, and we can’t do it the Members to participate in this process from Massachusetts has 81⁄2 minutes re- involuntary way; but just as soon as we of offering amendments that could maining. find some other way, they will be have most likely made this a better happy to bail out homeowners. piece of legislation. Mr. FRANK of Massachusetts. Mr. The fact is they have voted against There are several reasons I oppose Speaker, I understand the complaints using the bankruptcy court to write- this bill. Number one is the flawed about the process. Remember, though, down the principal amount and not process. In my tenure in Congress, I that several of the bills being reen- give the lenders anything. And now have never had a major piece of legisla- acted today have already been fully de- they are saying when we make a fair tion like this where I am not even bated and amended on the floor. There offer to the lenders to do the same going to get an opportunity to cast my is one that was not subject to the nor- thing, we are bailing out the lenders. vote. I know people who are watching mal—and I’m a general defender of the I have a lot of ‘‘respect’’ for anybody this process are wondering, you mean normal—process. It’s the FHA rescue who can come to this floor and just say we have been talking all day about this bill. they don’t want to help these home- important piece of legislation that the And I will say, in this case, I think it owners at all. That’s an honest posi- other side says is very important to is fair to ask Members to vote for it up tion. But to say you are against the the American people, yet their Member or down. It is a very interrelated piece voluntary and involuntary, that’s of Congress is not going to get a vote of legislation. It tries to balance cost wrong. on this process. It is a flawed process. and incentive. It would be easy to put Mr. FRANK of Massachusetts. I have We brought an energy bill over, it out of whack. And in this one case I one request for a unanimous consent, stripped all of the energy provisions think it is fair to say you can vote it and then I’m going to close, so I would out of it, and we are putting housing up or you can vote it down. Members yield to the gentlewoman from New into an energy bill. I still don’t under- will have a chance to vote on it. While York for a UC. stand the mechanics of that, and it’s in the form of an amendment, if Mrs. MALONEY of New York. I maybe someone later on can explain that amendment is defeated, it dies. thank the gentleman for yielding to me that to me. I also want to address the issue of the and for his extraordinary leadership on This is also about not saddling the amendment offered by the gentleman this extremely important housing American people who are already from North Carolina and the gen- stimulus package. It is good for the struggling to make their own house tleman from Ohio regarding preemp- country and good for my constituents payments, to make their own rental tion, because there may be some confu- in New York City. I strongly support payments, to pay the highest gasoline sion. it. prices in the history of this country, I personally spoke, today, with rep- Mr. Speaker, I rise in strong support for this and the highest electricity costs and resentatives of the banking organiza- Housing Stimulus Package. natural gas costs, it is about saddling tions, the American Bankers Associa- It is good for our country and it is good for them now with the payments for their tion, the Independent Community my constituents in New York. neighbor. Bankers, and the Mortgage Bankers. We all know we are facing a housing crisis. What the 110 million people who are They took the position that if we were Foreclosures are at record highs, wages are doing the best they can and want the able to adopt the language offered by stagnant and the markets continue to be vola- United States Congress to do is to the gentleman from Ohio, they would tile. leave them alone and really start ad- find this a bill that they would accept This housing package will help restore order dressing the major issues that are im- and would not seek to defeat. and provide the roadmap forward. portant to the American people. Because of an objection, we weren’t In addition to the $300 billion voluntary pro- 1545 able to do this, so technically, yes, gram that would permit FHA to provide up to b they had previously said they were op- $300 billion in new guarantees to help refi- It’s about not rewarding bad behav- posed to it in that form. They have nance at-risk borrowers into viable mortgages, ior. We have some lenders, and we have also said, after we outlined the proce- we are doing a number of things to help the some borrowers that went out and bet dure that was followed by the gen- mortgage market. that the housing market was going to tleman from Ohio (Mr. LATOURETTE), We are making permanent the current FHA go up. It didn’t go up, and, in fact, un- the gentleman from North Carolina and GSE loan limits we passed as part of our fortunately, in some places, it went (Mr. MILLER) and myself, that it is now first stimulus package. down. And now people are faced with a acceptable; that is, while we were Without this limit, the FHA limit in New York negative equity or a smaller equity in blocked by an objection from adopting City would drop from $729,750 to $362,000 their home. And we are sympathetic to the actual language, the language that and the Fannie Mae/Freddie Mac limit would that. was agreed to by them, by the Attor- drop from $729,000 to $417,000. As I said earlier, I’ve been in the real This bill modernizes the reverse mortgage estate business for a very long time. neys General, by the State bank super- provision administered by FHA, allowing co- I’ve seen the markets go up. I’ve seen visors, by advocacy groups, will be the ops to be included for the first time. the markets go down. And sometimes language that’s in the bill. So let there We are preserving affordable FHA-insured it causes a situation where people don’t be no doubt about that. There is no foreclosed multifamily projects. Including lan- have as much equity. substantive objection to what will hap- guage important to New York City. But what you have to understand is a pen. This bill includes an amendment I offered lot of people went into this process Now, let me talk about the bill. I that will provide for higher loan limits on with no equity. And now this bill says, guess I want to, not damn my bill homes that include a licensed child care facil- you know what? We’ve got a deal for today with faint praise, but support it. ity. you, because now we’re going to help It comes from the economists. This bill is needed. It helps our communities create equity in your house by putting Now, the gentleman from Arizona and I urge its adoption. your neighbors at risk. (Mr. FLAKE), for whom I have a great

VerDate Mar 15 2010 15:08 Nov 08, 2010 Jkt 069102 PO 00000 Frm 00117 Fmt 0688 Sfmt 0634 E:\BR08\H08MY8.004 H08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD May 8, 2008 CONGRESSIONAL RECORD—HOUSE, Vol. 154, Pt. 6 8261 deal of respect, a man of very high in- my Republican colleagues didn’t do it, rivatives. And the problem is that we tellectual integrity, he chided me be- but many of my Republican colleagues need to restrain some of their instincts cause I have taken a free market posi- did. We voted for a bill to regulate and let the market function again. And tion, but not here. And I’ll respond this subprime mortgages going forward. it simply will not happen if you simply way. We’re not simply relying on people’s let it go. I have opposed systemic interven- bad experience. We have put some re- Here’s what we say. And, by the way, tions in the market. I think it is gen- strictions on that. I supported Hope Now when it came erally unwise for us to enact legisla- I believe this is pro-market. The mar- out. But Hope Now had a flaw. It was tion which, in an ongoing way, dis- kets now are in trouble because a lot of based on the notion—Members don’t places the market. But that’s not what people who were very smart bought even pay attention to this—it was we do here. There is a part of the re- things they shouldn’t have bought, in- based on the notion that the problem ality of the market that is called mar- cluding subprime mortgages. And hav- was when the mortgage reset to a high- ket failure. People have won Nobel ing bought things they shouldn’t have er rate under adjustable rate mort- Prizes, Joe Stiglitz, for work about bought, they now don’t want to buy gages, that would be the problem. That market failure. Clearly there has been things they should buy. hasn’t been the problem. market failure with regard to mort- We all know the little story about The problem has been people who owe gages. The market failure was the the child who touches the hot stove, more than the loan is worth. Some of breaking of the lender-borrower rela- and having touched a hot stove and them were irresponsible in the first tionship and the substitution of being burned, won’t go near the stove. place. Some of them made the mistake securitization without appropriate We have investors today who, having that almost everybody else made of not countervailing incentives. touched the hot stove, are staying foreseeing the depth of the drop in This bill today is no ongoing inter- away from the refrigerator, the sink house prices. So Hope Now has been vention in the market. It is time lim- and the shower because they have been overtaken by events. ited, and limited in specifics to a sub- so badly burned. set of mortgages. It seeks to undo, to If we do not adopt appropriate re- We here are responding to reality in some extent, to mitigate a market fail- sponses to this market failure, we will a way that is pro-market and mini- ure. It will leave the market, I believe, not cure it, and the lag in investments mizes the outlay. I hope the bill is stronger going forward. will continue. passed. So I accept the gentleman from Ari- We are working through the market Mr. VAN HOLLEN. Mr. Speaker, I rise in zona’s reminding me that I should stay here. It is voluntary that a lender says support of the second amendment to the true to free market principles. This bill we’re going to cut it down. People say, American Housing Rescue and Foreclosure is true to free market principles. well, they’ll dump all their bad loans. Prevention Act of 2008. And let me quote one of the leading Have the Republicans who say that, be- Today, one quarter of subprime adjustable- advocates of free market principles in cause many Republicans are with us, so rate mortgages are delinquent by 90 days or the English-speaking world, the Econo- little confidence in the FHA? more. As a consequence, during 2007, fore- mist, called to my attention by the Nothing in this bill coerces the FHA closure proceedings were initiated on about staff of the Financial Services Com- to accept a single loan that it finds un- 1.5 million U.S. homes. The Federal Reserve mittee, which has done enormously likely to be repaid. And CBO accepts has projected that the rate of foreclosures will good work in substantively putting that, because they say of 500,000 loans grow even higher in 2008. this bill together, and in listening to that they expect to be accepted, the We know that many of these foreclosures me talk about it in various ways. And failure rate will be, average out to are unavoidable. There are cases where in- I appreciate both aspects of that. $4,800 per loan. Do you really think if vestors choose foreclosure because a prop- Here’s what the Economist said: the loan failed it would only cost us erty’s value has depreciated significantly, or a ‘‘The plan is hardly a bailout,’’ talking $4,800? borrower’s personal circumstances have about this bill. This is a current Econo- That figure, that $2.4 billion is CBO changed. And, many times, as has recently mist. ‘‘Lenders would have to write saying that there won’t be many fail- become alarmingly prevalent, a borrower was down their loans to 85 percent of the ures because of the criteria that are in put into a loan inappropriate for their cir- current value of a house.’’ By the way, this bill. cumstances. But, if a foreclosure is prevent- under FHA Security Administration’s And people have said, what about the able, and the borrower wants to stay in the plan, they can get a 100 percent loan people who paid their mortgages? Well, home, the economic argument for trying to put in. They can get somebody who’s if they live in a neighborhood where avolid foreclosure is strong. there is foreclosure, they’re getting defaulted and get them a 100 percent Foreclosures impose high legal and admin- hurt. If they live in a city where the loan. We require an 85 percent istrative costs. Foreclosures can destabilize property tax revenues are going down, writedown to the value. communities, reduce area property values and ‘‘Borrowers would pay a fee for the they’re getting hurt. And if they live in lower municipal tax revenues. And, at the na- insurance and give up a share of any America, they are in the midst of a re- tional level, foreclosures add to the stock of later price rise to the government.’’ By cession in which we are losing jobs homes for sale, increasing downward pressure the way, they would also be barred for when we should be gaining them, in on home prices, which affects the broader 5 years from taking out a second mort- which real wages have been pulled economy. gage. So the borrowers under this, if down, and the single biggest cause of there was an increase in equity, would this recession is the subprime crisis In the past, mortgage defaults were usually have to share much of it with the Gov- and its reverberations. triggered by a borrower’s life event, such as ernment, and the earlier in the process This is a rare case of a micro- the loss of a job, serious illness or injury, or in which they sold out, the more the economic factor causing a macro- divorce. But the widespread decline in home Government would get. That’s not the economic problem. And the market got prices we are witnessing today is a relatively bailout that people have described. us into this. And we don’t say junk the new phenomenon and lenders, servicers and People worry about moral hazard. I market. And I know people who have policymakers will have to develop new strate- would assure people, no borrower who said, oh, the market’s way too smart. gies to meet this new challenge. goes through this process will say at And people have said to me, you know, To be effective, our approach must closely the end of it, ‘‘Boy, that was fun. some smart people don’t agree with target the borrowers at the highest risk of fore- Where do I buy a ticket to get back on this proposal. Well, I agree with that. closure while avoiding programs that give bor- Space Mountain?’’ They will be de- But I also have to note that no dumb rowers, who can make their payments, an in- terred. people got America into this problem. centive to default. But we’re not relying solely on this. You had to be really smart to under- The American Housing Rescue and Fore- Two-thirds plus of this House, many of stand collateralized debt obligation de- closure Prevention Act will address these

VerDate Mar 15 2010 15:08 Nov 08, 2010 Jkt 069102 PO 00000 Frm 00118 Fmt 0688 Sfmt 9920 E:\BR08\H08MY8.004 H08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD 8262 CONGRESSIONAL RECORD—HOUSE, Vol. 154, Pt. 6 May 8, 2008 problems. The bill’s second amendment con- the staff of the Financial Services Committee ing to the housing and economic crisis and I tains several housing-related tax provisions re- have been instrumental in these efforts, which urge all my colleagues to pass the Housing cently reported by the Ways and Means Com- are designed to clarify Congressional intent re- Rescue Package today. mittee as part of the Housing Assistance Tax garding certain properties that entered the De- Mr. ETHERIDGE. Mr. Speaker, I rise in sup- Act. partment of Housing and Urban Development, port of H.R. 3221, American Housing Rescue The amendment creates a refundable tax HUD, property disposition process prior to the and Foreclosure Prevention Act of 2008, and credit of up to $7,500 for first-time home- enactment of the Deficit Reduction Act, DRA, amendments to the bill. This bill is a critical buyers that would serve as an interest-free but where the initial proposed disposition was step towards stabilizing our housing market, loan, and provides an additional standard de- delayed. and providing assistance to thousands of duction in 2008 of up to $350 for individuals While I believe that Parkview is already sub- Americans facing foreclosure. and $700 for couples for state and local prop- ject to the grandfathering provision of the There are grave problems facing our current erty taxes. It authorizes an additional $10 bil- DRA, this provision clarifies that such prop- housing market and economy. Decreasing lion in taxexempt bonds that would be used to erties should be considered ‘‘pre-DRA’’ prop- home values and lack of available credit are refinance subprime loans, finance the con- erties, and that HUD should proceed with its damaging the market, and skyrocketing mort- struction of low-income rental housing, and prior disposition contracts as to those prop- gages have led thousands of families to face support loans to first-time homebuyers. erties. This provision is one of many that was the frightening prospect of foreclosure. In my To assist our men and women in uniform, included in legislation that passed the House state of North Carolina alone, PEW Charity many of whom have put themselves in harms last year, and is now being included in this bill Trusts and the Center for Responsible Lend- way in service to their country, the amend- as part of a comprehensive housing package. ing estimate there will be 53,254 foreclosures ment adds provisions from a measure ap- This legislation is of the utmost importance to in 2008 and 2009. Not only does foreclosure proved by the Veterans Affairs Committee that the Congress, and it is my hope and expecta- strike at the heart of these families’ financial extends to one year, from 90 days, the period tion that it will soon be enacted into law. stability, but unfortunately the damage spreads following active duty service during which Mr. DONNELLY. Mr. Speaker, I rise in across all of our communities. The same study service members are protected from fore- strong support of H.R. 3221, The Foreclosure shows that over 330,000 homes in North closures. Prevention Act of 2008 and the package on Carolina will be devalued by the spillover im- This amendment will fully offset the cost of the floor today that will provide much-needed pact of the foreclosures, and North Carolina its tax provisions in two ways. First, by raising relief to homeowners at risk of foreclosure stands to lose over $860 million in property $8 billion through FY 2018 by requiring bro- across the country. values. kers to report their customer’s basis in securi- The collapse of the mortgage market that However, H.R. 3221 is a comprehensive ties transactions, and second, by raising $3.2 has unraveled over the last year has not only package that can provide relief to these fami- billion through FY 2018 by delaying, until impacted homebuyers who entered into non- lies and our communities in a variety of ways. 2010, new rules allocating interest expenses traditional mortgage products that they now Provisions in this bill reform and modernize between foreign and domestic sources. find they are unable to repay, but has also re- the Federal Housing Administration (FHA) as Mr. Speaker, I am proud to stand today in verberated throughout the economy. We must well as government sponsored entities Fannie support of the second amendment to The act with necessary urgency and pass the Mae and Freddie Mac. These programs allow American Housing Rescue and Foreclosure package before us today. for stability in the housing market and by My home State of Indiana has been signifi- Prevention Act of 2008 and I urge my col- strengthening their loan limits and regulations, cantly impacted by this foreclosure crisis, leagues to join me. they can serve as a safer alternative to the which is contributing to an ongoing economic Mr. DINGELL. Mr. Speaker, this legislation riskier subprime loans we have recently seen. downturn. Our State has lost 27,000 jobs in represents a fair, common sense solution that The American Housing Rescue and Fore- the manufacturing industry since 2000. Addi- will allow homeowners to stay in their homes closure Prevention Act of 2008 also includes a tionally, in 2007, 53,000 Indiana homes re- and help stabilize the housing market. I would tax benefit for first-time homebuyers as well as ceived foreclosure notices. This number is up an additional credit on property taxes for exist- like to extend my gratitude to Chairman FRANK 74 percent from the number of notices in ing homeowners who claim the standard de- for his hard work on this legislation, which will 2005. That means that 53,000 families in my duction. These measures will help revive the be of critical importance in Michigan, where State+ may be forced to move out of their housing market and get our sluggish economy there are thousands of homeowners in danger homes, pull their children out of school and moving in the right direction. of foreclosure. I am especially pleased that find another place to live. Mr. Speaker, many This bill also creates a voluntary FHA initia- this bill includes legislation which I cospon- of these people are not reckless speculators, tive that provides mortgage refinancing assist- sored that would provide up to $300 billion in but rather hard-working families struggling to ance to allow families to stay in their homes new loan guarantees to help refinance at-risk make ends meet. while also strengthening the housing market. borrowers into viable mortgages. In addition, This package allows lenders, investors and This voluntary plan would require lenders to this legislation includes important provisions homeowners to voluntarily sit down at a table write-down some of the existing mortgage in that expand homeownership opportunities for and work out a plan to rescue mortgages that order to qualify for FHA backing, and would veterans, seniors, and first-time homebuyers. may be on the verge of foreclosure. It takes a require borrowers to return portions of any fu- This legislation will help both homeowners responsible approach to provide rescue assist- ture profits on the house to the government in and lenders, but this is no bailout. Lenders ance to those who most need it without en- order to prevent foreclosure. It is important to who participate will have to take a loss, but couraging irresponsible behavior. note that under H.R. 3221, only owner-occu- their losses under this program will be far less Mr. Speaker, I am also glad to see that this pied homes facing foreclosure can qualify for than if these properties go into foreclosure. legislation includes a bill I introduced to raise this mortgage assistance, and speculators, in- Borrowers who realize a profit when they sell loan limits on FHA Title I-insured manufac- vestors, and second-homeowners are not eli- their home must return some of that profit to tured home loans which have not been ad- gible. This provision represents a compromise the government. The United States provided justed since 1992, allowing more people to by all participating parties and can keep peo- similar leadership during the New Deal using enter into a mortgage that they can afford on ple in their homes and improve surrounding a program run by the Home Owners’ Loan a high-quality affordable home. communities. Corporation, HOLC. Much like the HOLC, this Also, this comprehensive package includes I support the passage of H.R. 3221, Amer- program stands to save millions of homes a number of tax incentives to help prospective ican Housing Rescue and Foreclosure Preven- from foreclosure at a minimum cost to the tax- and current homeowners. It provides a $7,500 tion Act of 2008, and I urge my colleagues to payers. tax credit to eligible families to put towards join me. I would especially like to thank Chairman their downpayment on their first home. Exist- Mr. UDALL of Colorado. Mr. Speaker, I rise FRANK for his assistance in securing passage ing homeowners who do not itemize their tax in support of this legislation. of a provision important to the residents of returns for 2008 would be eligible to deduct up In most circumstances, I consider it counter- Parkview Apartments in Ypsilanti, Michigan. I to $700 for property tax relief at a time they productive and not in the best interest of the have been working for four years now to try to need it most. American people for the Federal Government facilitate the transfer of this property to Ypsi- Mr. Speaker, I want to thank Chairman to intervene in the free market process. How- lanti Housing Authority. Chairman FRANK and FRANK for his continued leadership in respond- ever, in certain exceptional times, I believe it

VerDate Mar 15 2010 15:08 Nov 08, 2010 Jkt 069102 PO 00000 Frm 00119 Fmt 0688 Sfmt 9920 E:\BR08\H08MY8.004 H08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD May 8, 2008 CONGRESSIONAL RECORD—HOUSE, Vol. 154, Pt. 6 8263 is the duty of the Federal Government to act well as other Administration officials, had In order to ensure borrowers would be for the greater good of our Nation. And I think worked with Chairman FRANK to shape provi- aware of the important FHA refinancing oppor- we are experiencing such an exceptional mo- sions of this legislation, so this change of tunity under Chairman FRANK’s bill, H.R. 5830, ment in American history. heart is doubly regrettable. I hope that the I introduced an amendment in the Financial The provisions of this legislative package President will change his mind and sign this Services Committee which stated that no less will help stabilize the downward trend in the needed legislation when it reaches his desk. than 2 percent of funds available for coun- housing industry and overall economy, and This legislation has been carefully crafted to seling in the bill would be targeted towards no- prevent that trend from spiraling out of control. safeguard against fraud, corporate giveaways tification to individuals who are eligible to refi- The danger is real. Just last month, the Pew and speculator abuse. And as concerned as I nance their mortgage under the bill’s provi- Charitable Trusts released a study that fore- was that the Federal Reserve had to devote sions. cast one in 25 homeowners in my home state $29 billion to prevent the collapse of invest- Further, we know that African American of Colorado will be in foreclosure within the ment bank Bear Stearns, I am equally con- mortgage consumers were 3.7 times more next two years if Congress does not act now cerned about the Federal Government taking likely than white borrowers to receive to curb this impending disaster. The national action to rescue the housing market. However, subprime loans and Latinos were 2.3 times forecast of homeowners in foreclosure within without the stability that the Fed provided the more likely. In order to help those dispropor- the next two years—one in 33—is only slightly investment banking industry, experts tell us tionately affected by these high-cost loans, my less discouraging. If we stand by and do noth- that the bottom may well have fallen out of our amendment further instructed the Secretary to ing, as some have suggested, the damage to economy. And it appears the same is true for give preference to organizations that have a the overall American economy could be dev- our housing market—without the stability this proven track record for outreach within minor- astating. legislation will help provide, it may not have ity communities in allocating these notification First and foremost, this bill will help Amer- the chance to correct itself and, eventually, re- resources. I am pleased the amendment re- ican families at risk of foreclosure to stay in bound. Main Street deserves the same atten- ceived bipartisan support and was incor- their homes by allowing the Federal Housing tion as Wall Street. porated into this crucial piece of legislation. Administration (FHA) to guarantee qualified re- For these reasons, Mr. Speaker, I urge my I believe H.R. 3221 is the right approach to financed loans. To do so, however, home- colleagues to join me in supporting all three this complex housing crisis. I thank Chairman owners and their lenders must agree to sac- components of this legislation. FRANK and Chairman RANGEL for their hard rifice. Lenders could recover no more than 85 Mr. LANGEVIN. Mr. Speaker, I rise in strong and thoughtful work on this bill and I look for- percent of a property’s current value, but could support of the American Housing Rescue and ward to seeing this legislation move forward. avoid the potentially greater losses associated Foreclosure Prevention Act, which will help cit- Mr. BACA. Mr. Speaker, I rise to support with unloading a foreclosed property. Mean- ies and towns, but most importantly, individ- this bipartisan housing stimulus package. while, participating homeowners could remain uals and families that have been adversely im- The foreclosure crisis is hurting communities in their home, but must repay the Federal pacted by the foreclosure crisis. all across the Nation, and my district has been Government a percentage of the value of the In my home state of Rhode Island, this especially impacted: 4,523 families in my dis- home if they sell or refinance again. problem is particularly acute. Foreclosures trict have already lost their homes this year. The bill provides much needed measures to have increased by 20 percent in the last few Over 11,000 families in San Bernardino Coun- modernize the FHA, allowing expanded oppor- months, and it is our most vulnerable commu- ty are currently in default. And the San tunities for families to secure affordable loans nities that have been disproportionately af- Bernardino-Riverside area in the Inland Em- without having to turn to subprime lenders. fected. pire, ranked #2 nationwide in foreclosure fil- The legislation also increases the Veterans Last weekend I teamed with Rhode Island ings this year. Administration home loan guarantee limit, al- Housing—a nonprofit organization dedicated Everyone pays when there are foreclosures! lowing our veterans to receive the dignified to keeping housing affordable—to hold a work- Crime increases, home values decline, homeownership opportunities they deserve for shop for those facing foreclosure. While we schools are affected, and cities run deficits honoring us with their service; reforms Gov- helped many local families, it is time for the which impacts revenues for local police, fire, ernment Sponsored Enterprises through Federal Government to do its part on a na- and social services. strengthened regulation, while raising GSE tional scale. H.R. 5818, the Neighborhood Stabilization loan limits for homes in high-cost areas; and I commend Chairman FRANK and Chairman Act which passed today, will help stabilize encourages mortgage servicers to readjust at- RANGEL for their leadership in bringing this communities harmed by empty homes closed risk mortgages by removing the threat of law- critical measure to the floor. I urge my col- by foreclosure. It will provide loans and grants suit. leagues to support this bill. to States to buy and rehabilitate these prop- This legislation would help remove some of Mr. CARSON of Indiana. Mr. Speaker, I rise erties and restore home values in neighbor- the excess housing inventory by offering a re- today in strong support of H.R. 3221, the hoods. fundable tax credit for first-time homebuyers. It American Housing Rescue and Foreclosure The broader housing package is also impor- would also provide additional mortgage rev- Prevention Act of 2008. This package is a tant for many reasons: FHA Stabilization will enue bonds for states to refinance subprime comprehensive response to the current hous- allow lenders to refinance mortgages with loans, and help prevent soldiers from being ing crisis that has left many honest, hard- FHA-insured loans to keep families in their unfairly penalized for their service by providing working Americans in financial distress. homes. FHA Modernization increases FHA more time to get their finances in order when H.R. 3221 is especially important to Hoo- loan limits permanently to help high cost hous- they return from service before a lender could siers who have struggled as our state consist- ing areas like the Inland Empire. The $7,500 start foreclosure. ently ranks among the top ten for foreclosures Tax Credit for Homebuyers will help first-time A final important piece of this legislation nationally. The district I represent, which in- homebuyers purchasing their first home. Low- would simply protect the right of States and cludes most of the City of Indianapolis, cur- income Housing Credit Reform modernizes cities to regulate their own foreclosure proc- rently has around 17,000 foreclosed properties the credit to increase affordable housing in un- ess. Some have argued that national banks and around 7,200 in the preforeclosure phase. derserved neighborhoods. The increase in and financial institutions should be exempt My constituents need the assistance available Mortgage Revenue Bonds will allow states to from these rules. I, however, believe it is the in this bill urgently. issue more bonds for housing and use the right of States and cities to have their own re- This package includes key legislation such proceeds to refinance subprime mortgages. quirements and enforce their own rules as Government Sponsored Enterprise reform, Finally, my amendment to the financial serv- throughout the foreclosure process. Federal Housing Administration modernization, ices committee bill, H.R. 5830, will promote in- Mr. Speaker, I was very disappointed to the Housing Assistance Tax Act and H.R. person housing counseling to reach home- learn of the Bush Administration’s threat to 5830, a critical bill reported out of the Finan- owners in default. This is more effective than veto this legislation, because I believe that it cial Services Committee last week that will sending a letter in the mail and will help pre- is important for us to act now to provide relief help borrowers at risk of foreclosure refinance vent many foreclosures. to America’s stressed homeowners. It is my into more stable loans. These bills will not only I urge my colleagues to support this housing understanding that Federal Reserve Chairman help borrowers now, but strengthen the mort- stimulus package. This is the right thing to do Bernanke and Treasury Secretary Paulson, as gage lending market moving forward. and will keep people in their homes.

VerDate Mar 15 2010 15:08 Nov 08, 2010 Jkt 069102 PO 00000 Frm 00120 Fmt 0688 Sfmt 9920 E:\BR08\H08MY8.004 H08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD 8264 CONGRESSIONAL RECORD—HOUSE, Vol. 154, Pt. 6 May 8, 2008 Mr. GEORGE MILLER of California. Mr. For too long, too many disadvantaged and With median home prices in Santa Barbara Speaker, I rise in strong support of this legisla- vulnerable Americans have been forgotten, ig- County alone declining almost 30 percent in tion to help homeowners and families affected nored or under-served when it came time to the past year alone, it is undoubtedly in the by the housing crisis. provide economic assistance. best interests of lenders to participate in this This past year has been one of the most dif- For the first time in a long time we have leg- program. ficult ever for middle class and low-income islation that recognizes and addresses the Lastly, the Neighborhood Stabilization Act homeowners because of the collapse of the unique housing needs and circumstances of establishes a loan and grant program for the credit markets, the weak economy, and high the working poor, and other vulnerable Ameri- purchase and rehabilitation of foreclosed energy prices. It is clear to all that what began cans. homes. as a housing crisis has become a crisis for the We provide States and cities with incentives Just this week one of my hometown news- entire economy and the entire country. to ensure that low-income housing options re- papers, the Ventura County Star, reported on The housing crisis put a strain on our bank- main available to those who need it most. the negative impact that foreclosed homes ing system, and that has sent shock waves We increase the allocation of Federal low- have on communities. throughout the credit markets, for cars, for stu- income housing tax credits and expand the Lower home values, increased crime, and dent loans, and for all consumers. American authority of States to issue tax-exempt bonds safety hazards are just a few of the con- families in all walks of life are feeling the eco- to help finance affordable housing. sequences that can result from foreclosure. nomic strain. Section 103 includes language to ensure This bill prevents neighborhood decline by Millions of families across the Nation have that Federal assistance that helps vulnerable providing targeted assistance to state and lost or are at risk of losing their homes. Fore- populations, like the elderly, the sick, and vet- local governments. closures in my congressional district, Solano erans, does not reduce the value of the Fed- Mr. Speaker, American families need help, County and Contra Costa County, are among eral low-income housing tax credits used to fi- and that is exactly what is provided by the the highest in the country. People are looking nance affordable rental housing. housing bills on the floor today. to Congress for help. Section 104 allows for consideration of I urge my colleagues to support these bills, It is critical that we stabilize the housing whether an affordable housing development and I urge the President to work together with market and reduce the number of homes employs technology and practices to improve Congress in addressing the needs of the hard- going into foreclosure. its energy efficiency, when Federal low-income working families in America who want to keep The bill we are considering today is urgently housing tax credits are allocated to affordable their homes. needed. It is designed to responsibly rescue housing developments. Mr. MARKEY. Mr. Speaker, I rise today in those who are facing foreclosure. It responds Section 104 also clarifies that students who support of H.R. 3221, the American Housing directly to the current crisis, but it also estab- were formerly in foster care are not precluded Rescue and Foreclosure Prevention Act of lishes a system to try to prevent a similar cri- from renting affordable housing financed by 2008. sis in the future. Federal low-income housing tax credits. This vital legislation comes at a time of This bill will provide mortgage refinancing This legislation touches the lives of real record-breaking gas prices, double digit in- assistance to keep families from losing their Americans who have been left behind or out- creases in food prices and a weakening econ- homes, protect neighboring home values, and right forgotten for too long. omy. On top of all these struggles, Americans I urge my colleagues to support the legisla- help stabilize the housing market. The federal now face a crisis at home and in their commu- tion. government will step in to insure $300 billion nities in the form of rising property fore- If we fail to meet the needs of vulnerable in new mortgages. closures. In some parts of the country, neigh- Americans, then we will fail to live up to our This legislation will allow FHA to insure borhoods are littered with ‘‘for sale’’ signs, and responsibility of governing on behalf of all peo- more affordable fixed rate loans for borrowers many families are struggling to keep up with ple. their mortgage payments. The legislation we who are facing financial troubles. It will mod- Mrs. CAPPS. Mr. Speaker, I rise today in are debating on this floor today will empower ernize the FHA and reform the GSEs while strong support of H.R. 5818, the Neighbor- communities to respond to the current home providing crucial liquidity to our mortgage mar- hood Stabilization Act, and H.R. 3221, the mortgage crisis, prevent further lending kets now, and will also strengthen regulation American Housing Rescue and Foreclosure abuses and increase federal oversight of the and oversight for the future. Prevention Act. The mortgage collapse has sent These bills come at a critical time for Amer- mortgage industry. H.R. 3221 expands the Federal Housing Ad- shockwaves through our entire economy and it ica—and especially for my constituents on the ministration’s role in preventing foreclosures is clear that stabilizing the housing market is Central and South Coasts of California. That is by expanding refinancing loan guarantees for a critical step in strengthening our economy. why I am extremely disappointed that the at-risk homeowners. Today, families are facing I am appalled that President Bush refuses President has threatened to veto them both. to help American homeowners despite being They include much-needed reforms of the variable interest rates, hidden fees, early pay- perfectly willing to rescue Bear Stearns just a Federal Housing Administration, Fannie Mae, ment penalties, but with enactment of the few months ago. It is reckless for the White and Freddie Mac, and usher these agencies Foreclosure Prevent Act, the government will House to threaten to veto this housing pack- into the 21st century. be there to provide relief and counseling. It age that will make it easier for those in trouble But they also accomplish three tasks that also increases oversight to ensure regulators to keep their homes and will help stabilize our are vital to the housing market and economy have the tools to prevent the next crisis. It ex- economy. of the Central and South Coasts. pands housing counseling and consumer pro- I urge the President to support this bill. First, the American Housing Rescue and tections. The bill also establishes an afford- With this legislation, we can begin to repair Foreclosure Prevention Act makes permanent able housing trust fund to provide assistance the economy, restore confidence in the mar- the temporary loan limit increases contained in for low income households. The bill even kets, limit the damage to families and neigh- the Economic Stimulus Act of 2008. makes it harder to foreclose on the homes of borhoods, and help build new affordable hous- Mr. Speaker, I cannot stress enough how our returning troops from Iraq and Afghani- ing. This bill is good for hard working Amer- vital this provision is for my district. stan. ican families. We owe it to them to get it done. Median home prices in Ventura, Santa Bar- This bill also contains important language to Mr. MCDERMOTT. Mr. Speaker, we’re here bara, and San Luis Obispo Counties are well my district and my hometown of Malden, Mas- today to take a stand on behalf of low-income above the national average, and our families sachusetts. The tenants of the Heritage Apart- and vulnerable Americans who have been left are truly struggling to obtain affordable hous- ments face an uncertain future, with an HUD out, shut out, dropped out or forced out of any ing. affordability contract expiring soon. The ten- chance at decent, affordable housing because Second, this bill will stem foreclosures by ants are facing possible displacement once an of the predatory economic policies of this Ad- creating a voluntary mortgage refinancing pro- outstanding HUD mortgage is fully paid in a ministration. gram that allows families to stay in their few years. The development is also in need of Under the leadership of Ways and Means homes. major renovations and upgrades that simply Chairman CHARLES RANGEL, we have bipar- Under this program, the Federal Housing cannot be delayed. Unfortunately HUD is fail- tisan legislation before us today that finally re- Administration has the authority to refinance ing to ensure that the development remains sponds to the needs of the American people. up to $300 billion in imperiled mortgages. affordable and livable by placing burdensome

VerDate Mar 15 2010 15:08 Nov 08, 2010 Jkt 069102 PO 00000 Frm 00121 Fmt 0688 Sfmt 9920 E:\BR08\H08MY8.004 H08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD May 8, 2008 CONGRESSIONAL RECORD—HOUSE, Vol. 154, Pt. 6 8265 restrictions on prepayment of the outstanding At the end of last year, home foreclosure and for all New Jerseyans who have been at mortgage and subsequent transfer to a new rates rose to the highest level in 20 years. risk of losing their homes. owner who is willing to finance the renova- Every day more than 7,000 people file for H.R. 3221 and the companion bill that the tions. foreclosure, and it is predicted that predatory House of Representatives will be considering, Language in this bill would allow income-eli- lending practices and sub prime mortgages H.R. 5818, the Neighborhood Stabilization Act gible residents to qualify for enhanced housing will cause one in every thirty-three home- are a bold step towards addressing the mort- vouchers following the prepayment of the HUD owners to foreclose on their mortgages in the gage crisis and the resulting economic down- mortgage and the property transfer and directs next 2 years. turn, and I urge my colleagues to support HUD to approve such actions. I want to thank This is not an issue that is merely affecting them. the Chairman of the Financial Services Com- those who have defaulted on their mortgages Mr. KANJORSKI. Mr. Speaker, I rise in sup- mittee (Mr. FRANK) for his assistance in ensur- and their lenders; it is having a ripple effect port of the amendments to H.R. 3221, the ing that this important provision is included in throughout the economy. It has resulted in a American Housing Rescue and Foreclosure this housing bill. nationwide decrease in housing prices of 12.4 Prevention Act of 2008, which the House is Today, with this legislation, we are taking percent, and 10 percent of Americans now considering today. This urgently needed legis- steps to revitalize our communities for a better owe more money on their mortgages than lation makes a number of surgical reforms to tomorrow. I strongly urge this House to vote to their homes are worth. It has caused a de- help address the problems we are currently approve this bill. crease in consumer confidence and cor- facing in our Nation’s housing markets. Mr. SKELTON. Mr. Speaker, over the past responding decrease in consumer spending. It In particular, I am pleased that one of the months, economic conditions in our country has contributed to a steep increase in job amendments that we will consider today con- have soured. Particularly troublesome to our losses in housing related industries such as tains H.R. 5579, the Emergency Mortgage Nation’s economic engine are skyrocketing Loan Modification Act of 2008. I have worked home foreclosures and loan delinquency rates, manufacturing, construction and related indus- tries. These job losses combined with the loss with the gentleman from Delaware (Mr. CAS- which have risen over 85 percent in the past TLE) to refine his original proposal and intro- year. of consumer confidence could reduce eco- nomic activity by over 150 billion dollars in duce a new bill. We also held a productive Foreclosures and delinquencies are harmful hearing on H.R. 5579 before the House Finan- to borrowers and lenders, but they also stifle 2008. This is a crisis, and it is time, it is past time, cial Services Capital Markets Subcommittee economic growth, shake consumer con- and made a number of revisions to the bill be- fidence, and lower home values for those who that the Federal Government step in and help those that are suffering. H.R. 3221 would pro- fore bringing it to the floor today. live near foreclosed properties. During the hearings on H.R. 5579 and vide mortgage refinancing assistance to keep While borrowers in our country must cer- throughout its legislative development, I have families in their homes, protect neighboring tainly bear a great deal of responsibility when been clear about the intended goals of this home values, and help stabilize the housing it comes to financial planning, the government legislation: to provide servicers a safe harbor market. It would expand the Federal Housing can and must carefully examine the impact of from investor lawsuits. Servicers, in turn, Administration to help borrowers who are at soaring mortgage foreclosures on the whole would have to meet prescribed duties and risk of losing their homes to refinance into U.S. economy and also thoroughly review reg- enter into a ‘‘qualified loan modification’’ or lower-cost government-insured mortgages that ulatory oversight with respect to the mortgage ‘‘workout plan’’ which the legislation defines. It they can afford to repay. H.R. 3221 ensures business. is my firm belief that with such an arrange- I have been pleased that the House has that this will be done responsibly, by requiring ment in place, servicers will more readily as- been active in addressing the mortgage crisis, lenders and mortgage investors to take signifi- sist troubled homeowners and will have more voting last year to strengthen consumer pro- cant losses in order to participate in this pro- tools at their disposal to prevent defaults and tections against risky loans and to overhaul gram and by requiring borrowers to share a foreclosures. the Federal Housing Administration (FHA), portion of any resale of a refinanced home Moreover, I would like to be clear about Freddie Mac, and Fannie Mae, among other with the government. what the bill does not intend. H.R. 5579 does things. Under the leadership of Financial Serv- H.R. 3221 also provides 11 billion dollars in not intend to create a statutory preference for ices Committee Chairman BARNEY FRANK, the tax incentives to help Americans purchase a loss mitigation activities generally, nor does it House is again poised to pass critical, market- first home or hold onto the ones that they al- limit the ability of servicers to pursue the full driven housing legislation designed to reduce ready have. This includes tax credits to first- scope of available options. In drafting this leg- foreclosures, to help families avoid foreclosure time homebuyers, an additional 10 billion dol- islation we sought to create a bill that honors in the future, and to alleviate the negative im- lars in mortgage revenue bonds for states, the terms of existing contracts while at the pacts of foreclosures on property values and and improves access to low-income housing. the national economy. same time recognizing that foreclosure is not It also includes a provision that I wrote to in the best interests of the investor or bor- I am pleased to support this legislation, allow homeowners who currently do not which would create a new voluntary program rower. itemize their Federal tax returns to take an ad- In closing, Mr. Speaker, Americans have within FHA that would offer lenders an alter- ditional standard deduction for the state and native to foreclosure. This approach, which is been hit hard both by the current housing cri- local property taxes that they pay. The Tem- sis and by the broader credit crunch. We can driven by the lenders’ desire to save costs as- porary Tax Relief Act creates an additional sociated with foreclosing on property, forces delay action no longer. I therefore urge my standard deduction of $350 for single filers the lender, the borrower, and the government colleagues to support H.R. 3221, and espe- and $700 for joint filers for state and local real to all make sacrifices to ensure families have cially the incorporated language from H.R. property taxes paid or accrued. This legislation the ability to stay in their homes. While some 5579. will complement efforts that have already been have criticized this initiative as a government Mrs. DRAKE. Mr. Speaker, first, I would like bailout of those who have made poor financial implemented on the state and federal level to to thank Chairman FRANK, Ranking Member choices, in my view, it represents an innova- help address the housing crisis. BACHUS and the Committee for their hard I am proud that several organizations in my tive, market-driven way to shore up the hous- work. They have presented a thoughtful and ing market and the overall economy. home state of New Jersey have stepped in to creative proposal. The measure would also create a $7,500 provide services and assistance to New Housing is a very complex issue—it is also tax incentive for first time home buyers and Jerseyans who are at risk of losing their a very emotional one. We aren’t just talking other important tax incentives while simulta- homes. One of the shining examples of this is about abstract concepts, we are talking about neously modernizing the FHA, Freddie Mac, Legal Services of New Jersey. LSNJ created a person’s home. We’re talking about real and Fannie Mae and increasing the loan limit the Anti-Predatory Lending Project 5 years people with a real problem. for FHA and Veterans’ Administration loans. ago to provide legal services to borrowers vic- Prior to Congress I was a Realtor for over I am hopeful that the Senate will act quickly timized by predatory lenders. LSNJ’s hard- 20 years. I have worked with many families to on this well written bill and that it will be working lawyers have helped almost 500 fami- help them realize their dream of home owner- signed into law by the President. lies who were facing foreclosure receive legal ship. I have also served as chairman of the Mr. HOLT. Mr. Speaker, I rise today in sup- assistance. I would like to commend LSNJ for Virginia Housing Study Commission. Housing port of H.R. 3221, the Foreclosure Prevention the work that they have done on behalf of the is an important issue for me and something I Act. residents of my central New Jersey district feel very strongly about.

VerDate Mar 15 2010 15:08 Nov 08, 2010 Jkt 069102 PO 00000 Frm 00122 Fmt 0688 Sfmt 9920 E:\BR08\H08MY8.004 H08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD 8266 CONGRESSIONAL RECORD—HOUSE, Vol. 154, Pt. 6 May 8, 2008 I have seen good markets and bad. I have Furthermore, there are several things al- enactment of the Deficit Reduction Act (DRA) witnessed many changes to the mortgage ready in the works. FHA secure is a new FHA but where the initial proposed disposition was market. I have struggled with how to define product allowing homeowners to refinance delayed. and protect against predatory lending prac- their resetting Adjustable Rate Mortgages. So While I believe that Parkview is already sub- tices. I have seen interest rates and loan prod- far, there are 3 times the refinances this year ject to the grandfathering provision of the ucts that seemed too good to be true—unfor- as in previous years. HOPE NOW is an alli- DRA, this provision clarifies that such prop- tunately, we have seen that in fact, many were ance between counselors, services, investors erties should be considered ‘‘pre-DRA’’ prop- too good to be true. I rise today to share my that is working to prevent foreclosure through erties, and that HUD should proceed with its observations and concerns about the bill be- outreach to delinquent borrowers. The pro- prior disposition contracts as to those prop- fore us. gram provides counseling and loan work outs erties. This provision is one of many that was There are many components of this bill based on buyers’ ability to pay. From July 07 included in legislation that passed the House which I think are excellent and fully support. through March 08 1.4m avoided foreclosures last year, and is now being included in this bill First Federal Housing Administration mod- through these efforts. Also, Fannie Mae is cur- as part of a comprehensive housing package. ernization is long overdue. FHA must be rently working on a streamlined short sale pro- This legislation is of the utmost importance to streamlined and made more efficient. Govern- gram to allow the sale of property that is over- the Congress, and it is my hope and expecta- ment Sponsored Enterprise regulatory reform mortgaged. tion that it will soon be enacted into law. would also help stabilize the housing market. Both the administration and the private sec- Ms. ROYBAL-ALLARD. Mr. Speaker, I rise I support an amendment to be offered today tor need to do a much better job at explaining in strong support of the American Housing that will create a first time home buyer tax what is currently available. Neither has done a Rescue and Foreclosure Prevention Act, and I credit for low- to mid-income buyers. This good job of explaining to the public these thank Chairman FRANK and Chairwoman WA- would increase the number of buyers in the available options. As such, I can understand TERS for bringing this important legislation to market—increasing demand now for an over- Chairman FRANK’s frustration and desire to the House floor. supply of homes. The bill also increases fund- take action. Mr. Speaker, we are all painfully aware of ing for foreclosure counselors and financial Again I thank the committee for their work the fact that communities across the Nation education. I also appreciate the additional and I would encourage us to institute the re- are being devastated by the current housing funding for law enforcement to prevent mort- forms in this package that I highlighted. How- crisis. The reforms in this legislation will help gage fraud, and that Department of Veterans’ ever, I firmly believe we should take caution many homeowners stay in their homes and Affairs loan limits are raised, and the en- and allow ongoing efforts to work before we prevent a similar situation from happening hanced appraisal standards and appraisal decide to go down the path of obligating again. independence. American taxpayers for $300B in loan guaran- The problems caused by subprime and ad- These are all well thought out, very impor- tees. justable-rate mortgages are particularly acute tant reforms that will help American families Mr. DINGELL. Mr. Speaker, this legislation in California, which has the second highest and the marketplace. represents a fair, common sense solution that foreclosure rate in the Nation. One in every 78 However, my concerns with today’s package will allow homeowners to stay in their homes, include the establishment of a new affordable families is now facing foreclosure in my State. and help stabilize the housing market. I would housing fund to create new grants that can be This legislation makes many important reforms like to extend my gratitude to Chairman FRANK directed to organizations that work specifically to address the current crisis, and I would like on housing issues. The bill does contain a for his hard work on this legislation, which will to highlight two provisions which I believe are provision that will prohibit the use of these be of critical importance in Michigan, where particularly critical for Californians. grant funds for political activities, the fact is are there are thousands of homeowners in First, the measure will expand the FHA pro- that many of the possible recipients engage in danger of foreclosure. I am especially pleased gram so that homeowners at risk of facing partisan political activities and therefore should that this bill includes legislation which I co- foreclosure can refinance into viable mort- not receive funding to offset their costs. It is sponsored that would provide up to $300 bil- gages that are government-backed. Many of important to remember that money is fungible, lion in new loan guarantees to help refinance my constituents are facing ballooning pay- so that if a group cannot use these grants at-risk borrowers into viable mortgages. In ad- ments on their mortgages which now far ex- specifically for political activities, it could cer- dition, this legislation includes important provi- ceed the actual value of their homes. This tainly have more money freed up for political sions that expand homeownership opportuni- measure will give them the opportunity to get activities because of the injection of new ties for veterans, seniors, and first-time home- their finances back on track and keep their grants funding. buyers. homes. I am also concerned about a $300 billion This legislation will help both homeowners Second, and perhaps most helpful to ad- federal loan guarantee. There are two impor- and lenders, but this is no bailout. Lenders dressing the crisis in my home State, the leg- tant issues with this provision that I foresee. who participate will have to take a loss, but islation makes permanent the FHA loan limit One, a lender with troubled loans could con- their losses under this program will be far less and GSE conforming loan limits temporarily in- tact those homeowners and offer a federally than if these properties go into foreclosure. creased by the Economic Stimulus Act. The backed loan—and refinance at a loss but now Borrowers who realize a profit when they sell previous GSE conforming loan limit of he has moved that loan from a potential total their home must return some of that profit to $417,000 and the FHA-insurable loan limit of loss to 85 percent current value—and will be the government. The United States provided $362,000 simply were not high enough to be guaranteed by federal government should it similar leadership during the New Deal using effective for high cost regions such as Cali- foreclose. He now has no reason to work with a program run by the Home Owners’ Loan fornia, where the average cost of a home that borrower should the borrower still face Corporation (HOLC). Much like the HOLC, this greatly exceeds the national average. foreclosure. Two, this program has a huge im- program stands to save millions of homes GSE and FHA backing of mortgages are pact on neighborhoods. Consider neighbor A from foreclosure at a minimum cost to the tax- key to ensuring access to affordable mort- who bought at the height of the market. This payers. gages for many home buyers and home- person struggles month to month but manages I would especially like to thank Chairman owners. Permanently increasing loan limits is to pay his mortgage on time. Neighbor 8 and FRANK for his assistance in securing passage perhaps the single most important thing we their lender agree to take advantage of the of a provision important to the residents of can do to ensure that Californians can benefit new program and negotiates their mortgage to Parkview Apartments in Ypsilanti, Michigan. I from congressional efforts to address the 85 percent current value. Not only is fairness have been working for 4 years now to try to mortgage crisis and have access to affordable, between the two neighbors and issue, but the facilitate the transfer of this property to Ypsi- fixed-rate mortgages. new reduction in value can have a huge im- lanti Housing Authority. Chairman FRANK and I urge my colleagues to do the right thing pact on the value of surrounding properties. the staff of the Financial Services Committee and vote in support of this legislation so that While I understand this is a voluntary pro- have been instrumental in these efforts, which we can help our neighbors keep their homes gram. My question is why can we not develop are designed to clarify Congressional intent re- and begin to revitalize our communities. incentives for the private sector to do this and garding certain properties that entered the De- Ms. VELA´ ZQUEZ. Mr. Speaker, let me first not obligate the American taxpayers with partment of Housing and Urban Development commend Chairman FRANK and Chairman $300B in loan guarantees? (HUD) property disposition process prior to the RANGEL for their leadership in moving the

VerDate Mar 15 2010 15:08 Nov 08, 2010 Jkt 069102 PO 00000 Frm 00123 Fmt 0688 Sfmt 9920 E:\BR08\H08MY8.004 H08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD May 8, 2008 CONGRESSIONAL RECORD—HOUSE, Vol. 154, Pt. 6 8267 American Housing Rescue and Foreclosure danger of losing their home can refinance into [Roll No. 301] Prevention Act of 2008 forward. This is an in- lower-cost government-insured mortgages YEAS—266 telligent and measured piece that addresses they can afford to repay. This voluntary pro- Abercrombie Graves Nadler the devastating effects of the mortgage crisis. gram is not a bailout as mortgage investors Ackerman Green, Al Napolitano For years, Washington was asleep at the must take significant losses by reducing the Allen Green, Gene Neal (MA) switch. But now, this Congress is addressing loan principal. This bill also strengthens regu- Altmire Grijalva Oberstar and preventing foreclosures. lation of Fannie Mae and Freddie Mac, raises Andrews Hall (NY) Obey Arcuri Hall (TX) Olver Nearly 650,000 foreclosure filings were the GSE loan limit, and increases homeowner- Baca Hare Ortiz issued in the first quarter of 2008, which rep- ship opportunities for our veterans. To in- Baird Harman Pallone resents 1 of every 194 households. Every day crease investment and confidence in the real Baldwin Hastings (FL) Pascrell that goes by without action means more fami- estate market, this bill also includes tax provi- Barrow Hayes Pastor sions to aid potential homebuyers. I am Bean Heller Payne lies are at risk of losing their homes. Becerra Herseth Sandlin Perlmutter This crisis—like so many other components pleased to be able to cast a vote for this legis- Berkley Higgins Peterson (MN) of the current recession—hit low-income and lation to help play a part to keep families in Berman Hill Pomeroy minority neighborhoods the hardest. Each their homes. Berry Hinchey Porter The U.S. House has also taken action to Bishop (GA) Hinojosa Price (NC) home lost to foreclosure affects entire neigh- Bishop (NY) Hirono Pryce (OH) borhoods. Chairwoman WATERS’ bill H.R. help our communities deal with the cost of Blumenauer Hodes Rahall 5818—of which I am an original cosponsor— foreclosure. The Neighborhood Stabilization Boren Holden Ramstad allows homeowners to fight back. Act (H.R. 5818), of which I am a cosponsor, Boswell Holt Rangel I want to particularly highlight a provision I focuses on the communities that have been hit Boucher Honda Reichert Boyd (FL) Hooley Rodriguez pushed to get added to this fine legislation. hardest by foreclosures as many foreclosed Boyda (KS) Hoyer Rogers (MI) Many homeowners ended up in foreclosure homes are currently vacant creating neighbor- Brady (PA) Inslee Ros-Lehtinen because they didn’t get sound mortgage ad- hood blight and bringing down property val- Braley (IA) Israel Ross vice. They need someone on their side—we ues. This bill will establish a $15 billion HUD Brown, Corrine Jackson (IL) Rothman grant providing state and localities with the Brown-Waite, Jackson-Lee Roybal-Allard all know the bank will be well represented. I Ginny (TX) Ruppersberger am proud to have worked with Chairman funds to purchase, rent, or rehabilitate of va- Buchanan Jefferson Ryan (OH) FRANK and several of my Financial Services cant foreclosed homes with the goal of occu- Butterfield Johnson (GA) Salazar Committee colleagues to ensure that low-in- pying them as soon as possible. Capito Johnson, E. B. Sa´ nchez, Linda These housing measures are an important Capps Jones (NC) T. come homeowners and veterans in high fore- Capuano Jones (OH) Sanchez, Loretta closure areas have access to professional step to help families facing foreclosure keep Cardoza Kagen Sarbanes counseling. Many distressed homeowners their homes, help other families avoid fore- Carnahan Kanjorski Schakowsky need sound advice now more than at any closures in the future, and help communities Carney Kaptur Schiff harmed by empty homes in the foreclosure Carson Keller Schwartz other time in their lives. Our legislation pro- Castle Kennedy Scott (GA) vides the help they need. process. The dream of homeownership has Castor Kildee Scott (VA) When a family loses a home to foreclosure, become a nightmare for too many people in Cazayoux Kilpatrick Serrano they lose more than four walls and a roof— our community. We need this legislation will Chandler Kind Sestak help rebuild our neighborhoods and our econ- Clarke King (NY) Shays they lose their economic stability. The housing Clay Kirk Shea-Porter package we are debating not only addresses omy. Cleaver Klein (FL) Sherman immediate needs but is a solid strategy for H.R. 3221 is an important step in address- Clyburn Knollenberg Shuler preventing a future housing downturn. ing the crisis in the housing market to help Conyers Kucinich Sires Cooper LaHood Skelton I urge a ‘‘yes’’ vote on the American Hous- families, communities and our economy. I urge my colleagues to support this legislation and Costa Lampson Slaughter ing Rescue and Foreclosure Prevention Act. Costello Langevin Smith (NJ) Ms. MCCOLLUM of Minnesota. Mr. Speak- move our housing policy in a new direction. Courtney Larson (CT) Smith (WA) er, I rise today in strong support of the Amer- The SPEAKER pro tempore. All time Cramer LaTourette Snyder ican Housing Rescue and Foreclosure Preven- for debate has expired. Crowley Lee Solis Pursuant to House Resolution 1175, Cuellar Levin Souder tion Act (H.R. 3221) and to Chairman FRANK the previous question is ordered. Cummings Lewis (GA) Space and Speaker PELOSI for their quick action to Davis (AL) Lipinski Speier The question of adoption of the mo- Davis (CA) Loebsack Spratt help American families. tion is divided among the three House The United States is facing a housing crisis. Davis (IL) Lofgren, Zoe Stark amendments. Davis, Lincoln Lowey Stupak Nationally, between 7,000 and 8,000 people a The first portion of the divided ques- DeFazio Lynch Sutton day are filing for foreclosure, and estimates tion is: Will the House concur in the DeGette Mahoney (FL) Tauscher Delahunt Maloney (NY) Taylor show that over 28,000 Minnesotans will lose amendment of the Senate with House their homes to foreclosure in 2008. Fore- DeLauro Markey Thompson (CA) amendment No. 1 printed in House Re- Dent Marshall Thompson (MS) closures hurt our families, neighborhoods, and port 110–622? Diaz-Balart, L. Matheson Tierney communities. I saw the impact of the fore- The question was taken; and the Diaz-Balart, M. Matsui Towns closure crisis firsthand when I recently visited Dicks McCarthy (NY) Tsongas Speaker pro tempore announced that Dingell McCollum (MN) Turner the East Side neighborhoods in St. Paul who the ayes appeared to have it. Doggett McCotter Udall (CO) are hit hard by this crisis. Foreclosures result Mr. NEUGEBAUER. Mr. Speaker, on Donnelly McDermott Udall (NM) in reduced property values for neighbors and that I demand the yeas and nays. Doyle McGovern Upton lost tax revenue for states and local govern- The yeas and nays were ordered. Edwards McHugh Van Hollen Ehlers McIntyre Vela´ zquez ments, as well as contribute to criminal activ- The SPEAKER pro tempore. Pursu- Ellison McNerney Visclosky ity. The high rate of foreclosure also has a ant to clause 8 and clause 9 of rule XX, Ellsworth McNulty Walsh (NY) substantial spillover effect on financial markets this 15-minute vote on concurring in Emanuel Meek (FL) Walz (MN) and the broader economy through the loss of the Senate amendment with amend- Engel Meeks (NY) Wasserman English (PA) Melancon Schultz jobs. ment No. 1 will be followed by 5-minute Eshoo Michaud Waters Congress has a role in protecting families votes on concurring in the Senate Etheridge Miller (NC) Watson and neighborhoods from an expansion of this amendment with amendment No. 2, Farr Miller, Gary Watt crisis, which is why I support the Foreclosure concurring in the Senate amendment Fattah Miller, George Waxman Prevention Act (H.R. 3221). H.R. 3221 is Con- Filner Mitchell Weiner with amendment No. 3, adopting the Foster Mollohan Welch (VT) gress’ most comprehensive response yet to motion to instruct offered by Mr. Frank (MA) Moore (KS) Wexler address housing affordability and the rising FLAKE, and adopting the motion to in- Gerlach Moore (WI) Wilson (OH) numbers of foreclosures. This legislation will struct offered by Mr. CANTOR. Giffords Moran (VA) Woolsey help troubled borrowers avoid foreclosure The vote was taken by electronic de- Gilchrest Murphy (CT) Wu Gillibrand Murphy, Patrick Wynn while minimizing taxpayer exposure. It ex- vice, and there were—yeas 266, nays Gonzalez Murphy, Tim Yarmuth pands the FHA program so that borrowers in 154, not voting 13, as follows: Gordon Murtha Young (FL)

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NAYS—154 RECORDED VOTE Roskam Smith (NJ) Walsh (NY) Ross Smith (WA) Walz (MN) Akin Fossella Neugebauer Mr. RANGEL. Mr. Speaker, I demand Rothman Snyder Wamp Alexander Foxx Nunes a recorded vote. Roybal-Allard Solis Wasserman Bachmann Franks (AZ) Paul Ruppersberger Souder Schultz Bachus Frelinghuysen Pearce A recorded vote was ordered. Ryan (OH) Space Barrett (SC) Gallegly Pence The SPEAKER pro tempore. This is a Waters Salazar Speier Bartlett (MD) Garrett (NJ) Peterson (PA) Watson 5-minute vote. Sa´ nchez, Linda Spratt Barton (TX) Gingrey Petri Watt T. Stark Biggert Gohmert Pickering The vote was taken by electronic de- Waxman Sanchez, Loretta Stupak Bilbray Goode Pitts vice, and there were—ayes 322, noes 94, Weiner Sarbanes Sutton Bilirakis Goodlatte Platts Welch (VT) not voting 17, as follows: Schakowsky Tauscher Bishop (UT) Granger Poe Weldon (FL) Schiff Taylor Blackburn Hastings (WA) Price (GA) [Roll No. 302] Weller Schwartz Terry Blunt Hensarling Putnam Westmoreland AYES—322 Scott (GA) Thompson (CA) Boehner Herger Radanovich Wexler Abercrombie Doyle Lampson Scott (VA) Thompson (MS) Bonner Hobson Regula Ackerman Drake Langevin Serrano Tiahrt Whitfield (KY) Bono Mack Hoekstra Rehberg Allen Dreier Larson (CT) Sestak Tierney Wilson (NM) Boozman Hulshof Rogers (AL) Altmire Duncan Latham Shays Towns Wilson (OH) Boustany Hunter Rogers (KY) Andrews Edwards LaTourette Shea-Porter Tsongas Wilson (SC) Brady (TX) Inglis (SC) Rohrabacher Arcuri Ehlers Lee Sherman Turner Wittman (VA) Broun (GA) Issa Roskam Baca Ellison Levin Shimkus Udall (CO) Wolf Brown (SC) Johnson (IL) Royce Baird Ellsworth Lewis (CA) Shuler Udall (NM) Woolsey Burgess Johnson, Sam Ryan (WI) Baldwin Emanuel Lewis (GA) Shuster Upton Wu Burton (IN) Jordan Sali Barrow Emerson Lewis (KY) Simpson Van Hollen Wynn Buyer King (IA) Saxton Barton (TX) Engel Linder Sires Vela´ zquez Yarmuth Calvert Kingston Scalise Bean English (PA) Lipinski Skelton Visclosky Young (AK) Camp (MI) Kline (MN) Schmidt Becerra Eshoo LoBiondo Slaughter Walberg Young (FL) Cannon Kuhl (NY) Sensenbrenner Berkley Etheridge Loebsack Cantor Lamborn Sessions Berman Farr Lofgren, Zoe NOES—94 Carter Latham Shadegg Berry Fattah Lowey Akin Flake Mica Chabot Latta Shimkus Bilbray Filner Lynch Alexander Foxx Miller (FL) Coble Lewis (CA) Shuster Bilirakis Forbes Mahoney (FL) Bachmann Franks (AZ) Myrick Cole (OK) Lewis (KY) Simpson Bishop (GA) Fortenberry Maloney (NY) Bachus Frelinghuysen Conaway Linder Smith (NE) Neugebauer Bishop (NY) Fossella Markey Barrett (SC) Gallegly Crenshaw LoBiondo Smith (TX) Paul Blumenauer Foster Marshall Bartlett (MD) Garrett (NJ) Cubin Lucas Stearns Pearce Bono Mack Frank (MA) Matheson Biggert Gingrey Culberson Lungren, Daniel Sullivan Pence Boozman Gerlach Matsui Bishop (UT) Gohmert Davis (KY) E. Terry Pitts Boren Giffords McCarthy (CA) Blackburn Granger Davis, David Mack Thornberry Poe Boswell Gilchrest McCarthy (NY) Blunt Hastings (WA) Davis, Tom Manzullo Tiahrt Price (GA) Boucher Gillibrand McCollum (MN) Boehner Hensarling Deal (GA) Marchant Tiberi Pryce (OH) Boyd (FL) Gonzalez McCotter Bonner Herger Doolittle McCarthy (CA) Walberg Putnam Boyda (KS) Goode McDermott Boustany Hobson Drake McCaul (TX) Walden (OR) Radanovich Brady (PA) Goodlatte McGovern Brady (TX) Inglis (SC) Dreier McCrery Wamp Rogers (AL) Braley (IA) Gordon McHugh Broun (GA) Issa Duncan McHenry Weldon (FL) Rogers (KY) Brown, Corrine Graves McIntyre Brown (SC) Johnson (IL) Emerson McKeon Weller Brown-Waite, Green, Al McKeon Buyer Jordan Rohrabacher Everett McMorris Westmoreland Ginny Green, Gene McNerney Calvert King (IA) Royce Fallin Rodgers Whitfield (KY) Buchanan Grijalva McNulty Cantor Kirk Ryan (WI) Feeney Mica Wilson (NM) Burgess Hall (NY) Meek (FL) Carter Kline (MN) Sali Ferguson Miller (FL) Wilson (SC) Burton (IN) Hall (TX) Meeks (NY) Coble Kuhl (NY) Saxton Flake Miller (MI) Wittman (VA) Butterfield Hare Melancon Cole (OK) Lamborn Scalise Forbes Moran (KS) Wolf Camp (MI) Harman Michaud Conaway Latta Schmidt Fortenberry Myrick Young (AK) Capito Hastings (FL) Miller (MI) Crenshaw Lucas Sensenbrenner NOT VOTING—13 Capps Hayes Miller (NC) Cubin Lungren, Daniel Sessions Capuano Heller Miller, Gary Culberson E. Shadegg Aderholt Musgrave Rush Cardoza Herseth Sandlin Miller, George Davis (KY) Mack Smith (NE) Campbell (CA) Renzi Tancredo Carnahan Higgins Mitchell Doolittle Manzullo Smith (TX) Cohen Reyes Tanner Carney Hill Mollohan Everett Marchant Stearns Gutierrez Reynolds Carson Hinchey Moore (KS) Fallin McCaul (TX) Sullivan Larsen (WA) Richardson Castle Hinojosa Moran (KS) Feeney McCrery Thornberry Castor Hirono Moran (VA) Ferguson McHenry Tiberi ANNOUNCEMENT BY THE SPEAKER PRO TEMPORE Cazayoux Hodes Murphy (CT) The SPEAKER pro tempore (during Chabot Hoekstra Murphy, Patrick NOT VOTING—17 the vote). Let me advise Members that Chandler Holden Murphy, Tim Aderholt McMorris Reynolds Clarke Holt Murtha Campbell (CA) Rodgers Richardson there are approximately 2 minutes re- Clay Honda Nadler Cannon Moore (WI) Rush maining in this vote. Cleaver Hooley Napolitano Cohen Musgrave Tancredo Clyburn Hoyer Neal (MA) Gutierrez Nunes Tanner Conyers Hulshof Oberstar Larsen (WA) Renzi Walden (OR) b 1619 Cooper Hunter Obey Costa Inslee Olver ANNOUNCEMENT BY THE SPEAKER PRO TEMPORE Messrs. TURNER, WALSH of New Costello Israel Ortiz The SPEAKER pro tempore (during York and HALL of Texas changed their Courtney Jackson (IL) Pallone the vote). There are 2 minutes remain- vote from ‘‘nay’’ to ‘‘yea.’’ Cramer Jackson-Lee Pascrell ing in this vote. So the first portion of the divided Crowley (TX) Pastor Cuellar Jefferson Payne b 1627 question was adopted. Cummings Johnson (GA) Perlmutter The result of the vote was announced Davis (AL) Johnson, E. B. Peterson (MN) Mr. SHAYS changed his vote from as above recorded. Davis (CA) Johnson, Sam Peterson (PA) ‘‘no’’ to ‘‘aye.’’ Davis (IL) Jones (NC) Petri A motion to reconsider was laid on So the second portion of the divided Davis, David Jones (OH) Pickering question was adopted. the table. Davis, Lincoln Kagen Platts The result of the vote was announced The SPEAKER pro tempore. The Davis, Tom Kanjorski Pomeroy Deal (GA) Kaptur Porter as above recorded. Chair will now put the question on the DeFazio Keller Price (NC) A motion to reconsider was laid on second portion of the divided question. DeGette Kennedy Rahall the table. The question is: Will the House con- Delahunt Kildee Ramstad The SPEAKER pro tempore. The cur in the amendment of the Senate DeLauro Kilpatrick Rangel Dent Kind Regula Chair will now put the question on the with House amendment No. 2 printed in Diaz-Balart, L. King (NY) Rehberg third portion of the divided question. House Report 110–622? Diaz-Balart, M. Kingston Reichert The question is: Will the House con- The question was taken; and the Dicks Klein (FL) Reyes cur in the amendment of the Senate Dingell Knollenberg Rodriguez Speaker pro tempore announced that Doggett Kucinich Rogers (MI) with House amendment No. 3 printed in the ayes appeared to have it. Donnelly LaHood Ros-Lehtinen House Report 110–622?

VerDate Mar 15 2010 15:08 Nov 08, 2010 Jkt 069102 PO 00000 Frm 00125 Fmt 0688 Sfmt 0634 E:\BR08\H08MY8.004 H08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD May 8, 2008 CONGRESSIONAL RECORD—HOUSE, Vol. 154, Pt. 6 8269 The question was taken; and the Tauscher Upton Waxman MOTION TO INSTRUCT CONFEREES Speaker pro tempore announced that Taylor Van Hollen Weiner ON H.R. 2419, FOOD AND ENERGY Thompson (CA) Vela´ zquez Welch (VT) the ayes appeared to have it. Thompson (MS) Visclosky Wexler SECURITY ACT OF 2007 RECORDED VOTE Tierney Walsh (NY) Wilson (OH) Towns Walz (MN) The SPEAKER pro tempore. The un- Mr. PRICE of Georgia. Mr. Speaker, I Woolsey finished business is the vote on the mo- Tsongas Wasserman Wu demand a recorded vote. Turner Schultz Wynn tion to instruct on H.R. 2419 offered by Udall (CO) Watson A recorded vote was ordered. Yarmuth the gentleman from Arizona (Mr. Udall (NM) Watt The SPEAKER pro tempore. This FLAKE) on which the yeas and nays will be a 5-minute vote. NOES—160 were ordered. The vote was taken by electronic de- Akin Frelinghuysen Myrick The Clerk will redesignate the mo- vice, and there were—ayes 256, noes 160, Alexander Gallegly Neugebauer tion. Altmire Garrett (NJ) Pearce not voting 17, as follows: Bachmann Gingrey Pence The Clerk redesignated the motion. [Roll No. 303] Bachus Gohmert Petri The SPEAKER pro tempore. The AYES—256 Barrett (SC) Goode Pickering question is on the motion to instruct. Barton (TX) Goodlatte Pitts Abercrombie Farr McIntyre Biggert Granger Poe This will be a 5-minute vote. Ackerman Fattah McNerney Bilbray Graves Price (GA) The vote was taken by electronic de- Allen Filner McNulty Bilirakis Hall (TX) Pryce (OH) vice, and there were—yeas 128, nays Andrews Fortenberry Meek (FL) Blackburn Hastings (WA) Putnam 274, not voting 31, as follows: Arcuri Foster Meeks (NY) Blunt Heller Radanovich Baca Frank (MA) Melancon Boehner Hensarling Ramstad [Roll No. 304] Baird Gerlach Michaud Bonner Herger Regula YEAS—128 Baldwin Giffords Miller (MI) Bono Mack Hobson Rehberg Barrow Gilchrest Miller (NC) Boozman Hoekstra Reichert Akin Gingrey Petri Bartlett (MD) Gillibrand Miller, George Boustany Hulshof Rogers (AL) Alexander Harman Pitts Bean Gonzalez Mitchell Brady (TX) Hunter Rogers (KY) Bachmann Hastings (WA) Price (GA) Becerra Gordon Mollohan Broun (GA) Inglis (SC) Rogers (MI) Bartlett (MD) Hensarling Pryce (OH) Berkley Green, Al Moore (KS) Brown (SC) Issa Rohrabacher Bean Herger Radanovich Berman Green, Gene Moore (WI) Buchanan Johnson, Sam Roskam Biggert Hobson Ramstad Berry Grijalva Moran (VA) Burgess Jones (NC) Royce Bilbray Hoekstra Reichert Bishop (GA) Hall (NY) Murphy (CT) Burton (IN) Jordan Ryan (WI) Blackburn Holt Rogers (KY) Bishop (NY) Hare Murphy, Patrick Buyer Keller Sali Blumenauer Hunter Rogers (MI) Bishop (UT) Harman Murphy, Tim Calvert King (IA) Saxton Blunt Inglis (SC) Rohrabacher Blumenauer Hastings (FL) Murtha Camp (MI) Kingston Scalise Boehner Issa Roskam Boren Hayes Nadler Cantor Kirk Schmidt Boustany Johnson, Sam Rothman Boswell Herseth Sandlin Napolitano Capito Kline (MN) Sensenbrenner Brady (TX) Jordan Royce Boucher Higgins Neal (MA) Carter Knollenberg Sessions Broun (GA) Keller Ruppersberger Boyd (FL) Hill Oberstar Chabot Kuhl (NY) Shadegg Burgess Kind Ryan (WI) Boyda (KS) Hinchey Obey Coble LaHood Shimkus Camp (MI) Kingston Sali Brady (PA) Hinojosa Olver Conaway Lamborn Shuster Cantor Kirk Scalise Braley (IA) Hirono Ortiz Crenshaw Latham Simpson Capuano Kline (MN) Schmidt Brown, Corrine Hodes Pallone Cubin Latta Smith (NE) Chabot Knollenberg Sensenbrenner Brown-Waite, Holden Pascrell Culberson Lewis (CA) Smith (TX) Chandler Lamborn Sestak Ginny Holt Pastor Davis (KY) Lewis (KY) Souder Coble Latham Shadegg Butterfield Honda Paul Davis, David Linder Stearns Cooper Latta Shays Capps Hooley Payne Davis, Tom Lungren, Daniel Sullivan Crenshaw Linder Smith (NJ) Capuano Hoyer Perlmutter Deal (GA) E. Terry Culberson Mack Smith (WA) Cardoza Inslee Peterson (MN) Diaz-Balart, L. Mack Thornberry Davis, David Manzullo Souder Carnahan Israel Peterson (PA) Diaz-Balart, M. Manzullo Tiahrt Davis, Tom McCotter Stark Carney Jackson (IL) Platts Drake Marchant Tiberi Deal (GA) McCrery Stearns Carson Jackson-Lee Pomeroy Dreier McCarthy (CA) Walberg Dent McDermott Tiahrt Castle (TX) Porter Duncan McCaul (TX) Wamp Doggett McGovern Tiberi Castor Jefferson Price (NC) Emerson McCotter Weldon (FL) Doolittle McHenry Tierney Cazayoux Johnson (GA) Rahall English (PA) McCrery Weller Drake McMorris Upton Chandler Johnson (IL) Rangel Everett McHenry Westmoreland Dreier Rodgers Walberg Clarke Johnson, E. B. Reyes Feeney McKeon Whitfield (KY) Duncan Mica Wamp Clay Jones (OH) Rodriguez Ferguson McMorris Wilson (NM) English (PA) Michaud Waxman Cleaver Kagen Ros-Lehtinen Flake Rodgers Wilson (SC) Feeney Miller (FL) Weller Cole (OK) Kanjorski Ross Forbes Mica Wittman (VA) Ferguson Moore (WI) Westmoreland Conyers Kaptur Rothman Fossella Miller (FL) Wolf Flake Moran (KS) Wilson (NM) Cooper Kennedy Roybal-Allard Foxx Miller, Gary Young (AK) Forbes Murphy (CT) Wilson (SC) Costa Kildee Ruppersberger Franks (AZ) Moran (KS) Young (FL) Fossella Myrick Wittman (VA) Costello Kilpatrick Ryan (OH) Foxx Obey Wolf Courtney Kind Salazar NOT VOTING—17 Franks (AZ) Paul Wynn Cramer King (NY) Sa´ nchez, Linda Aderholt Larsen (WA) Rush Frelinghuysen Payne Young (AK) Crowley Klein (FL) T. Campbell (CA) Musgrave Tancredo Garrett (NJ) Pence Young (FL) Cuellar Kucinich Sanchez, Loretta Cannon Nunes Tanner NAYS—274 Cummings Lampson Sarbanes Clyburn Renzi Walden (OR) Abercrombie Davis (AL) Langevin Schakowsky Cohen Reynolds Waters Boyda (KS) Conaway Davis (CA) Larson (CT) Schiff Gutierrez Richardson Allen Brady (PA) Costa Davis (IL) LaTourette Schwartz Altmire Brown, Corrine Costello Davis, Lincoln Lee Scott (GA) ANNOUNCEMENT BY THE SPEAKER PRO TEMPORE Andrews Brown-Waite, Courtney DeFazio Levin Scott (VA) The SPEAKER pro tempore (during Arcuri Ginny Cramer DeGette Lewis (GA) Serrano Baca Buchanan Crowley Delahunt Lipinski Sestak the vote). Members are advised there is Baldwin Burton (IN) Cubin DeLauro LoBiondo Shays 1 minute remaining in this vote. Barrett (SC) Butterfield Cuellar Dent Loebsack Shea-Porter Barrow Buyer Cummings Dicks Lofgren, Zoe Sherman b 1633 Becerra Capito Davis (AL) Dingell Lowey Shuler So the third portion of the divided Berkley Capps Davis (CA) Doggett Lucas Sires Berman Cardoza Davis (IL) Donnelly Lynch Skelton question was adopted. Berry Carnahan Davis (KY) Doolittle Mahoney (FL) Slaughter The result of the vote was announced Bilirakis Carney Davis, Lincoln Doyle Maloney (NY) Smith (NJ) as above recorded. Bishop (GA) Carson DeGette Edwards Markey Smith (WA) A motion to reconsider was laid on Bishop (NY) Carter Delahunt Ehlers Marshall Snyder Bishop (UT) Castle DeLauro Ellison Matheson Solis the table. Bonner Castor Diaz-Balart, L. Ellsworth Matsui Space The SPEAKER pro tempore. Pursu- Bono Mack Cazayoux Diaz-Balart, M. Emanuel McCarthy (NY) Speier ant to section 2 of House Resolution Boozman Clarke Dicks Engel McCollum (MN) Spratt 1175, the motion that the House concur Boren Clay Dingell Eshoo McDermott Stark Boswell Cleaver Donnelly Etheridge McGovern Stupak in the Senate amendment to the title Boucher Clyburn Doyle Fallin McHugh Sutton is adopted. Boyd (FL) Cole (OK) Edwards

VerDate Mar 15 2010 15:08 Nov 08, 2010 Jkt 069102 PO 00000 Frm 00126 Fmt 0688 Sfmt 0634 E:\BR08\H08MY8.004 H08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD 8270 CONGRESSIONAL RECORD—HOUSE, Vol. 154, Pt. 6 May 8, 2008 Ehlers LaHood Rangel The result of the vote was announced Whitfield (KY) Wittman (VA) Young (FL) Ellison Lampson Regula Wilson (NM) Wolf Ellsworth Langevin Rehberg as above recorded. Wilson (SC) Young (AK) Emanuel Larsen (WA) Reyes A motion to reconsider was laid on Emerson Larson (CT) Rodriguez the table. NAYS—222 Engel LaTourette Rogers (AL) Stated against: Abercrombie Grijalva Oberstar Eshoo Lee Ros-Lehtinen Allen Hall (NY) Olver Etheridge Levin Ross Mr. FILNER. Mr. Speaker, on rollcall 304, I Altmire Hare Ortiz Everett Lewis (CA) Roybal-Allard was unable to vote because of pressing busi- Andrews Harman Pallone Fallin Lewis (GA) Ryan (OH) ness with my constituents in my home district. Arcuri Hastings (FL) Pastor Farr Lewis (KY) Salazar Baca Herseth Sandlin Perlmutter Fattah Lipinski Sa´ nchez, Linda Had I been present, I would have voted ‘‘no.’’ Barrow Higgins Peterson (MN) Fortenberry LoBiondo T. f Bean Hill Pomeroy Foster Loebsack Sanchez, Loretta Becerra Hinchey Price (NC) Frank (MA) Lofgren, Zoe Sarbanes MOTION TO INSTRUCT CONFEREES Berkley Hinojosa Rahall Gallegly Lowey Saxton Berman Hirono Rangel Gerlach Lucas Schakowsky ON H.R. 2419, FOOD AND ENERGY Berry Hodes Rehberg Giffords Lungren, Daniel Schiff SECURITY ACT OF 2007 Bishop (GA) Holden Reichert Gilchrest E. Schwartz Bishop (NY) Holt Reyes Gillibrand Lynch Scott (GA) The SPEAKER pro tempore. The un- Blumenauer Honda Rodriguez Gohmert Mahoney (FL) Scott (VA) finished business is the vote on the mo- Boren Hooley Rogers (AL) Gonzalez Maloney (NY) Serrano tion to instruct on H.R. 2419 offered by Boswell Hoyer Ross Goode Marchant Sessions Boucher Inslee Rothman Goodlatte Markey Shea-Porter the gentleman from Virginia (Mr. CAN- Boyd (FL) Israel Roybal-Allard Gordon Marshall Sherman TOR) on which the yeas and nays were Boyda (KS) Jackson (IL) Ruppersberger Granger Matsui Shimkus ordered. Brady (PA) Jackson-Lee Ryan (OH) Graves McCarthy (CA) Shuler The Clerk will redesignate the mo- Brown, Corrine (TX) Salazar Green, Al McCarthy (NY) Shuster Butterfield Johnson (GA) Sa´ nchez, Linda Green, Gene McCaul (TX) Simpson tion. Camp (MI) Johnson (IL) T. Grijalva McCollum (MN) Sires The Clerk redesignated the motion. Capps Johnson, E. B. Sanchez, Loretta Hall (NY) McHugh Skelton The SPEAKER pro tempore. The Cardoza Jones (OH) Sarbanes Hall (TX) McIntyre Slaughter Carnahan Kagen Schakowsky Hare McNerney Smith (NE) question is on the motion to instruct. Carney Kanjorski Schiff Hastings (FL) McNulty Smith (TX) This will be a 5-minute vote. Carson Kennedy Schwartz Hayes Meek (FL) Snyder The vote was taken by electronic de- Castor Kildee Scott (GA) Heller Meeks (NY) Solis vice, and there were—yeas 169, nays Cazayoux Kilpatrick Scott (VA) Herseth Sandlin Melancon Space Chandler Kirk Serrano Higgins Miller (MI) Speier 222, not voting 42, as follows: Clarke Klein (FL) Sestak Hill Miller (NC) Spratt [Roll No. 305] Clay Kucinich Shays Hinchey Miller, George Stupak Cleaver LaHood Shea-Porter Hinojosa Mitchell Sutton YEAS—169 Clyburn Lampson Simpson Hirono Mollohan Tauscher Akin Forbes McHugh Conyers Langevin Sires Hodes Moore (KS) Taylor Alexander Fortenberry McMorris Cooper Larsen (WA) Skelton Holden Moran (VA) Terry Bachmann Fossella Rodgers Costa Lee Slaughter Honda Murphy, Patrick Thompson (CA) Baldwin Foxx Mica Costello Levin Smith (NJ) Hooley Murphy, Tim Thompson (MS) Barrett (SC) Franks (AZ) Miller (FL) Courtney Lewis (GA) Smith (WA) Hoyer Murtha Thornberry Bartlett (MD) Gallegly Moore (WI) Cramer Lipinski Snyder Hulshof Nadler Towns Biggert Garrett (NJ) Moran (KS) Crowley LoBiondo Solis Inslee Napolitano Tsongas Bilbray Gerlach Murphy, Tim Cuellar Loebsack Space Israel Neal (MA) Turner Bilirakis Gingrey Myrick Cummings Lofgren, Zoe Speier Jackson (IL) Neugebauer Udall (CO) Bishop (UT) Gohmert Neugebauer Davis (AL) Lowey Spratt Jackson-Lee Oberstar Udall (NM) Blackburn Goode Obey Davis (CA) Lynch Stupak (TX) Olver Van Hollen Blunt Goodlatte Pearce Davis (IL) Mahoney (FL) Sutton Johnson (GA) Ortiz Vela´ zquez Boehner Granger Pence DeGette Maloney (NY) Tauscher Johnson (IL) Pallone Visclosky Bonner Graves Peterson (PA) Delahunt Markey Taylor Johnson, E. B. Pascrell Walsh (NY) Bono Mack Hall (TX) Petri DeLauro Marshall Thompson (CA) Jones (NC) Pastor Walz (MN) Boozman Hastings (WA) Pitts Dicks Matsui Thompson (MS) Jones (OH) Pearce Wasserman Boustany Hayes Platts Dingell McCarthy (NY) Tierney Kagen Perlmutter Schultz Brady (TX) Heller Poe Donnelly McCollum (MN) Towns Kanjorski Peterson (MN) Watson Broun (GA) Hensarling Porter Doyle McDermott Tsongas Kaptur Peterson (PA) Watt Brown-Waite, Herger Price (GA) Edwards McGovern Udall (CO) Kennedy Pickering Weiner Ginny Hobson Pryce (OH) Ellison McIntyre Udall (NM) Kildee Platts Welch (VT) Buchanan Hoekstra Putnam Ellsworth McNerney Van Hollen Kilpatrick Poe Weldon (FL) Burgess Hulshof Radanovich Emanuel McNulty Vela´ zquez King (IA) Pomeroy Wexler Burton (IN) Hunter Ramstad Engel Meek (FL) Visclosky King (NY) Porter Whitfield (KY) Buyer Inglis (SC) Regula Eshoo Meeks (NY) Walsh (NY) Klein (FL) Price (NC) Wilson (OH) Cantor Issa Rogers (KY) Etheridge Melancon Walz (MN) Kucinich Putnam Woolsey Capito Johnson, Sam Rogers (MI) Fallin Michaud Wasserman Kuhl (NY) Rahall Yarmuth Carter Jones (NC) Rohrabacher Farr Miller (MI) Schultz Castle Jordan Ros-Lehtinen Fattah Miller (NC) Watson NOT VOTING—31 Chabot Keller Roskam Foster Miller, George Watt Coble Kind Royce Ackerman Conyers Reynolds Frank (MA) Mitchell Weiner Cole (OK) King (IA) Ryan (WI) Aderholt DeFazio Richardson Frelinghuysen Mollohan Welch (VT) Conaway King (NY) Sali Bachus Filner Rush Giffords Moore (KS) Weldon (FL) Crenshaw Kingston Saxton Baird Gutierrez Sullivan Gilchrest Moran (VA) Weller Cubin Kline (MN) Scalise Barton (TX) Jefferson Tancredo Gillibrand Murphy (CT) Wexler Culberson Knollenberg Schmidt Braley (IA) Matheson Tanner Gonzalez Murphy, Patrick Wilson (OH) Davis (KY) Kuhl (NY) Sensenbrenner Brown (SC) McKeon Walden (OR) Gordon Murtha Woolsey Davis, David Lamborn Sessions Calvert Miller, Gary Waters Green, Al Napolitano Wynn Campbell (CA) Musgrave Davis, Tom Larson (CT) Sherman Wu Green, Gene Neal (MA) Yarmuth Cannon Nunes Deal (GA) Latham Shimkus Cohen Renzi Dent LaTourette Shuster Diaz-Balart, L. Latta Smith (NE) NOT VOTING—42 ANNOUNCEMENT BY THE SPEAKER PRO TEMPORE Diaz-Balart, M. Lewis (CA) Smith (TX) Ackerman DeFazio Paul The SPEAKER pro tempore (during Doggett Lewis (KY) Souder Aderholt Filner Payne the vote). Members are advised that 1 Doolittle Linder Stark Bachus Gutierrez Pickering Drake Lucas Stearns Baird Jefferson Renzi minute remains in this vote. Dreier Lungren, Daniel Terry Barton (TX) Kaptur Reynolds Duncan E. Thornberry Braley (IA) Manzullo Richardson b 1639 Ehlers Mack Tiahrt Brown (SC) Matheson Rush Emerson Marchant Tiberi Calvert McKeon Shadegg English (PA) McCarthy (CA) Turner Campbell (CA) Miller, Gary Mr. LEVIN changed his vote from Shuler Everett McCaul (TX) Upton Cannon Musgrave ‘‘yea’’ to ‘‘nay.’’ Sullivan Feeney McCotter Walberg Capuano Nadler So the motion to instruct was re- Ferguson McCrery Wamp Cohen Nunes jected. Flake McHenry Westmoreland Davis, Lincoln Pascrell

VerDate Mar 15 2010 15:08 Nov 08, 2010 Jkt 069102 PO 00000 Frm 00127 Fmt 0688 Sfmt 0634 E:\BR08\H08MY8.004 H08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD May 8, 2008 CONGRESSIONAL RECORD—HOUSE, Vol. 154, Pt. 6 8271 Tancredo Walden (OR) Waxman tive business, with votes postponed the supplemental. I wonder where we Tanner Waters Wu until 6:30 p.m. On Wednesday and are on that topic of PAYGO as it re- ANNOUNCEMENT BY THE SPEAKER PRO TEMPORE Thursday, the House will meet at 10 lates to those two issues. The SPEAKER pro tempore (during a.m. for legislative business. On Friday Is that a decided issue yet, and how the vote). There are 2 minutes remain- no votes are expected at this time. would you expect that it may be de- ing in this vote. We will consider several bills under cided? suspension of the rules. A final list of Mr. HOYER. First, let me say that I b 1646 suspension bills will be announced, as don’t believe that the PAYGO, under Mr. SHERMAN changed his vote is the custom, by the close of business the proposal that has been made, ap- from ‘‘nay’’ to ‘‘yea.’’ tomorrow. We expect to consider the plies to the GI Bill, to the Webb bill, or So the motion to instruct was re- Iraq/Afghanistan supplemental appro- to whatever bill there might be. STEPH- jected. priations bill. In addition, we also hope ANIE HERSETH SANDLIN has a bill as The result of the vote was announced to consider the farm bill conference re- well. Mr. MITCHELL has worked very as above recorded. port. And it is possible, if the budget hard on his bill. But however that A motion to reconsider was laid on conference were completed, that we might be considered, we believe that the table. might consider that as well. technically it does not need a waiver of Stated against: Mr. BLUNT. I thank my friend for PAYGO. But, clearly, the unemploy- Mr. FILNER. Mr. Speaker, on rollcall 305, I that information. ment insurance, which would be con- was unable to vote because of pressing busi- Is it likely on the two conference re- sidered as an emergency, as was the ness with my constituents in my home district. ports you mentioned that the farm bill stimulus for stimulating the economy, Had I been present, I would have voted ‘‘no.’’ conference report will come before the would be dealt with as an emergency. f budget conference report? Mr. BLUNT. I was fortunate enough Mr. HOYER. It’s likely that that will to have a meeting with Secretary PERSONAL EXPLANATION happen. I can’t assert that, but I think Gates this week, and he, of course, en- Mr. GUTIERREZ. Mr. Speaker, I was un- it’s likely. courages us to get this supplemental avoidably absent from this Chamber today. As you know, the farm bill has been done quickly because, otherwise, they Had I been present, I would have voted ‘‘yea’’ up to agreement and then back. I un- immediately get into trying to transfer on rollcall votes 299, 300, 301, 302 and 303 derstand it is now agreed to and that funds around and things that may be and ‘‘no’’ on rollcall votes 298, 304 and 305. Mr. PETERSON would like to bring it to available but do create huge manage- f the floor, assuming that the agreement ment problems. I do hope we can get holds, on Wednesday. So I think it’s this done before the Memorial Day COMMUNICATION FROM THE HON- likely. break, as you suggested we would. ORABLE JOHN A. BOEHNER, RE- Mr. BLUNT. I am told if we went to Mr. HOYER. Will my friend yield? PUBLICAN LEADER the new budget, there might be some Mr. BLUNT. I yield. The SPEAKER pro tempore (Mr. additional PAYGO items, but the cur- Mr. HOYER. We were trying to get it KLEIN of Florida) laid before the House rent budget makes that farm bill more done quickly this week. There were the following communication from the workable. So I think that might be the some delays, as I recall, in the process. Honorable John A. Boehner, Repub- case. That was not the only reason, as the lican Leader: Mr. HOYER. If the gentleman will gentleman has observed. But we hope CONGRESS OF THE UNITED STATES, yield, I see the chairman on the floor. to get it done quickly. HOUSE OF REPRESENTATIVES, The chairman and I have discussed Mr. BLUNT. You mentioned the Washington, DC, May 8, 2008. that issue, and that’s why I indicate other alternatives to the so-called Hon. NANCY PELOSI that it is likely. Mr. PETERSON has Webb bill, and the Herseth Sandlin bill Speaker, U.S. Capitol, worked extraordinarily hard, along that is cosponsored by Mr. BOOZMAN on Washington, DC. with a lot of others. But because he’s this side, I’m told by our Members and DEAR SPEAKER PELOSI: Pursuant to Section on the floor, I want to commend Chair- frankly some people from the Pentagon 1853(a) of the Implementing Recommenda- tions of the 9/11 Commission Act of 2007 (P.L. man PETERSON for the work that he has that it has some real merit over the 110–53), I am pleased to appoint Mr. Henry put in on this. It’s been a very rough other bill. Since we don’t have any op- Sokolski of Arlington, Virginia and Mr. Ste- conference and a very rough agree- tions in that bill, at least the bill we phen Rademaker of McLean, Virginia to the ment. But he and Mr. LATOURETTE were talking about this week, no op- Commission on the Prevention of Weapons of have worked closely together, and I tions to bring alternatives to the floor, Mass Destruction Proliferation and Ter- congratulate them both. I would hope that we could look at all rorism. Mr. BLUNT. That’s right. Mr. GOOD- of the alternatives in that part that Both Mr. Sokolski and Mr. Rademaker LATTE and Mr. PETERSON have talked benefit our servicemen and women and have expressed interest in serving in this ca- pacity and I am pleased to fulfill their re- to both of us a lot about this bill, and be sure we’re bringing the best alter- quests. I think it’s coming to some conclusion native the House has available to it to Sincerely, now. the floor next week. JOHN A. BOEHNER, Mr. HOYER. I said Mr. LATOURETTE. Mr. HOYER. I appreciate the gentle- Republican Leader. I’m sure he’s worked hard, too, but Mr. man’s comments. f GOODLATTE is the ranking member. I will say that Congresswoman Mr. BLUNT. Mr. LATOURETTE was HERSETH SANDLIN has worked very LEGISLATIVE PROGRAM probably working on the Coast Guard hard on that. I’m sure Mr. BOOZMAN has (Mr. BLUNT asked and was given issues in the farm bill. as well. The committee has addressed permission to address the House for 1 I would like to ask the gentleman on that bill. It’s a good bill. It’s not as ex- minute.) the supplemental, I noticed in a num- tensive, as you know, as the Webb bill, Mr. BLUNT. Mr. Speaker, I yield to ber of printed reports that one of the which has also been worked on pretty my friend from Maryland, the majority reasons we didn’t get to the supple- hard by former Secretary of the Navy leader, to tell us about next week’s mental was that the Blue Dogs were WEBB, JIM WEBB, the Senator from Vir- scheduled bills. claiming some credit that the PAYGO ginia. Both bills obviously seek to Mr. HOYER. I thank the Republican issue, which you and I actually dis- make sure that our warriors who come whip for yielding. cussed last week, was a problem. At back, those who have defended freedom On Monday the House will meet in that time you thought that we might in Iraq and Afghanistan, that when pro forma session at 2 p.m. On Tuesday be able to waive PAYGO for both the they come back, we invest in their edu- the House will meet at 12:30 p.m. for GI portion of the supplemental and the cation so they, in turn, can grow our morning hour and at 2 p.m. for legisla- unemployment insurance portion of economy and our country and do what

VerDate Mar 15 2010 15:08 Nov 08, 2010 Jkt 069102 PO 00000 Frm 00128 Fmt 0688 Sfmt 0634 E:\BR08\H08MY8.004 H08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD 8272 CONGRESSIONAL RECORD—HOUSE, Vol. 154, Pt. 6 May 8, 2008 the veterans of World War II did. But cising, as I understand, its jurisdiction ing up our own reserve and reduce de- we’re looking at those and they’re under the legislation that we passed to mand. Economists tell us that would under discussion. look at prices. have a positive effect on bringing Mr. BLUNT. I thank the gentleman In addition, we have numerous hear- prices down as well. for that. ings scheduled. We’ve had some this Mr. BLUNT. Based on the increase in When you look at the anticipated week, next week, and the week after prices, if in fact that would have the spending and the scoring on those bills, looking at various different aspects of same impact as a gas tax holiday, both of them add so many new things this. Clearly, our consuming public, maybe we should do both. I suspect to the benefit area that there’s very whether they be commercial, which are there would be substantial support on little money spent in the first year. probably having the most critical prob- the floor to do both. And since it takes that long to really lem because that’s their livelihood, as The only other item I am going to get the new system up and running, I well as those of us who are not driving mention today is the Colombia Free would just suggest again that the clos- for commercial sake but for important Trade Agreement. It was 1 year ago to- er we are to a system that the military sake, to get to school, to get to work, morrow that the House, the Senate and can be supportive of, both individuals to get to hospitals, to do all those the administration made an agreement in the military and the institutions, I things, we are very cognizant, as I on trade. That was about a year after think all of us want to take a step for- know all of us are, of the strain that is the Colombia Free Trade Agreement ward on those things that relate to being put on the consumers of our had been negotiated. We have not servicemen and women and particu- country. passed that agreement yet and don’t larly those servicemen and women that have any schedule on the floor. I would b 1700 may have been left out of past benefits hope that we will continue work to get for those who served. That would relate Not only are they seeing an economic the Colombia Free Trade Agreement most directly to the National Guard downturn, but at the same time that and the other trade agreements but and the reserves who are called up they are having reduced capacity to particularly the Colombia agreement maybe for multiple periods of time but purchase things critical to them, gaso- to the floor and do that in the spirit of never for a long enough period of time line and home heating oil are going up the agreement that the Speaker and at one consecutive time of full-time almost every week 5 to 10 cents. And so administration and Senate negotiators service to qualify for past benefits. We we are addressing that. We met with announced a year ago. want to do that, but certainly we want all the chairmen who reported out the I would yield. Mr. HOYER. I thank the gentleman to do that in the very best way, par- energy bill last year and asked them to address this issue short term, medium for yielding. ticularly when you look at how long it I want to say that both the Speaker takes to retool the way that these ben- term and long term. Mr. BLUNT. I thank the gentleman and I believe that the administration, efits are made available for that to in reaching an agreement that you happen. Since it appears at this point for that. I would like to find something to do refer to, made a positive step in terms that we’d have no alternative to bring, of incorporating within trade agree- that would have this impact as we get in this case, a better House alternative ments a consideration of workers’ into this driving season. I know that to the floor, I hope we are putting the rights and environmental concerns so Mr. RYAN introduced a bill today that right set of building blocks together to that our manufacturers and our job would take the money that otherwise really build a better future for those producers in the United States had a would have been used for earmarks on who serve and are willing to put their fair, more level playing field in which both sides of the aisle and use that to lives at risk and their other activities to compete and that our workers were offset the loss of revenue to the high- on hold for us. competing with workers who had the way trust fund of a gas tax holiday. Mr. HOYER. Will the gentleman right to organize and were getting de- That would be one of the things that yield? cent wages. Mr. BLUNT. I would. we could do in the next 2 weeks that The Colombia agreement, as you Mr. HOYER. I thank the gentleman should have immediate impact at the know, was not sent down here after for yielding and certainly agree with pump by Memorial Day if we did it be- agreement between the administration the sentiments he has just expressed, fore that Memorial Day break. But if and the House leadership. The response which is why, of course, we want to see we could do something to reduce gas was to simply not take it off the agen- this move forward quickly in the sup- prices, that would be a major thing. da but take the time limit during plemental. But the alternatives that Mr. HOYER. Will the gentleman which we might consider that. That the gentleman has expressed are being yield on that? was an interim step which did not, as looked at. Mr. BLUNT. I would yield. the Speaker has pointed out, take Co- Mr. BLUNT. I’m also wondering, as Mr. HOYER. One of the things I know lombia off the agenda. It simply didn’t we approach the Memorial Day recess I am personally for, and I think the put it on the agenda for immediate and we have had this series now of days Speaker is for that, as well, and we consideration. But that is still on the of the highest gasoline prices ever, will have urged the administration to take agenda. It is still available, a force, and there be any legislation on the floor to action, is not purchase additional oil it is still under discussion. reduce the price of gasoline as we go for the Strategic Petroleum Reserve at Mr. BLUNT. I hope we can get it into Memorial Day and the other sum- this time. I would be opposed to taking done. mer driving seasons? oil out of the reserve. But if we stop f Mr. HOYER. We certainly, as you purchasing oil for a period of time, re- know, passed a number of pieces of leg- duce our demand as we fill the SPR, ADJOURNMENT TO MONDAY, MAY islation which have attempted to look not only will we reduce demand, econo- 12, 2008 at a number of different issues. One, of mists tell us that would have an effect Mr. HOYER. Mr. Speaker, I ask course, was the manipulation by the on price, perhaps about the same as the unanimous consent that when the OPEC nations to artificially inflate gasoline tax holiday that you refer to. House adjourns today, it adjourn to prices. The other thing we have looked There are a number of pieces of legis- meet at 2 p.m. on Monday next, and at is price gouging at the pump. We lation. Mr. WELCH has a bill. Mr. further, that when the House adjourns passed that. The other item we looked LAMPSON has a bill. And many, many on that day, it adjourn to meet at 12:30 at, of course, was the energy bill itself. other Members have a bill. The admin- p.m. on Tuesday, May 13, for morning- And the other was we asked the FTC to istration, we believe, can do this on its hour debate. look at manipulation. We wrote to the own. We think that would be good pol- The SPEAKER pro tempore. Is there FTC about 3 weeks ago. The FTC gave icy while we have this crisis to stop objection to the request of the gen- attention to our letter and is now exer- filling up, not reducing, but to stop fill- tleman from Maryland?

VerDate Mar 15 2010 15:08 Nov 08, 2010 Jkt 069102 PO 00000 Frm 00129 Fmt 0688 Sfmt 0634 E:\BR08\H08MY8.004 H08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD May 8, 2008 CONGRESSIONAL RECORD—HOUSE, Vol. 154, Pt. 6 8273 There was no objection. of things. And as the majority leader mittee. And we are trying to work f indicated a short time ago, we are through all of these. looking for some long-term strategies. The farm bill conference is all but AUTHORIZING THE CLERK TO What this instruction to the con- done. Over the last few weeks, I have MAKE CORRECTIONS IN EN- ferees does is it takes, in essence, a been saying we need to dot our I’s and GROSSMENT OF H.R. 5818, NEIGH- piece of legislation, a bipartisan piece cross our T’s. The I’s are dotted and we BORHOOD STABILIZATION ACT of legislation that the Energy Sub- are crossing our T’s. So even though I OF 2008 committee held hearings on earlier agree that the argument that my Mr. FRANK of Massachusetts. Mr. this week, a bill offered by the friend is making on the problems of Speaker, I ask unanimous consent that gentlelady, STEPHANIE HERSETH H.R. 6 are correct and on target, we the Clerk be authorized to make tech- SANDLIN, which is bipartisan, and it ex- cannot do it on this farm bill. The hour nical corrections in the engrossment of pands the definition of renewable fuel is too late. So I would oppose my good H.R. 5818 and amendments to H.R. 3221, and biomass to include wood removed friend’s amendment at this time. to include corrections in spelling, as byproducts from National Forest I reserve the balance of my time. punctuation, section numbering and System land or any organic matter Mr. UPTON. Madam Speaker, I have cross-referencing, and the insertion of that is available on a renewable basis no further speakers. I am prepared to appropriate headings. from non-Federal land, including re- close if the gentleman yields back his The SPEAKER pro tempore. Is there newable plant material which includes time. objection to the request of the gen- feed grain, other agricultural commod- Mr. HOLDEN. Again, the argument tleman from Massachusetts? ities, other plants and trees, waste ma- that my friend makes is credible. But There was no objection. terial, including crop residue, et at this time, we just cannot accept it. cetera, food and yard waste. And it The conference is all but over. And I f would instruct the conferees to include would oppose my friend’s motion. MOTION TO INSTRUCT CONFEREES this on the farm bill. I yield back the balance of my time. ON H.R. 2419, FOOD AND ENERGY Of course, the farm bill is a bill that Mr. UPTON. Madam Speaker, I just SECURITY ACT OF 2007 is moving along. The farm legislation might say in closing as a member of is a bill that is going to be on the the Energy and Commerce Committee, Mr. UPTON. Mr. Speaker, I have a President’s desk we hope in the not too we had what I thought was a very fa- motion at the desk. distant future. So this is a bill that is vorable hearing earlier this week. I The SPEAKER pro tempore. The going to move. would like to think this is a vehicle we Clerk will report the motion. Why not take a piece of bipartisan can move this legislation on very The Clerk read as follows: legislation that deals with alternative quickly rather than resort to the nor- Mr. Upton moves that the managers on the fuels like ethanol, expand that, and ac- mal process, particularly as we look part of the House at the conference on the tually get it to the President’s desk so long term. We can do this in the short disagreeing votes of the two Houses on the Senate amendment to the bill H.R. 2419 (an we can do it right away rather than term. It makes a lot of sense. Act to provide for the continuation of agri- wait for more hearings, markups and I would urge a ‘‘yes’’ vote on the mo- cultural programs through fiscal year 2012) dealing with the Senate? Who knows tion to instruct the conferees to in- be instructed to recede to the provisions pro- what happens over there. We can actu- clude this in the farm bill. posed to be added to Section 9001 of the Farm ally get this thing done and then ad- Madam Speaker, I yield back the bal- Security and Rural Investment Act of 2002 in dress part of the needs that we have in ance of my time. the form of a definition of ‘‘Renewable Bio- this country to expand our alternative The SPEAKER pro tempore (Ms. mass.’’ fuel base. CLARKE). Without objection, the pre- Mr. UPTON (during the reading). Mr. So I would like to think that we vious question is ordered on the motion Speaker, I ask unanimous consent that could adopt this. I know that there is to instruct. the motion be considered as read. quite a bit of support on it based on the There was no objection. The SPEAKER pro tempore. Is there hearing that we held earlier this week. The SPEAKER pro tempore. The objection to the request of the gen- Madam Speaker, I would reserve the question is on the motion to instruct. tleman from Michigan? balance of my time. The question was taken; and the There was no objection. Mr. HOLDEN. Madam Speaker, I Speaker pro tempore announced that The SPEAKER pro tempore. Pursu- yield myself such time as I may con- the noes appeared to have it. ant to the rule, the gentleman from sume. Mr. UPTON. Madam Speaker, on that Michigan (Mr. UPTON) and the gen- Madam Speaker, it appears that my I demand the yeas and nays. tleman from Pennsylvania (Mr. friend from Michigan’s motion is to in- The yeas and nays were ordered. HOLDEN) will be recognized for 30 min- struct the House to recede to the Sen- The SPEAKER pro tempore. Pursu- utes each. ate’s definition of renewable biomass. ant to clause 8 of rule XX, further pro- The Chair recognizes the gentleman The House conferees have receded to ceedings on this question will be post- from Michigan. the Senate on their definition of renew- poned. Mr. UPTON. Mr. Speaker, I will say I able biomass. That definition of renew- f know that the hour is late. Many of us able biomass that is included in the MOTION TO INSTRUCT CONFEREES are trying to get home for the week- farm bill applies only to farm bill pro- ON H.R. 2419, FOOD AND ENERGY end, and there is business after me. So grams. This definition does not apply SECURITY ACT OF 2007 I don’t at all intend to take too much to H.R. 6. of my 30 minutes that I have. But let The farm bill conferees report does Mr. SHIMKUS. Madam Speaker, I me yield myself as much time as I may not amend H.R. 6, that despite the fact have a motion to instruct at the desk. consume now. that several members of the Agri- The SPEAKER pro tempore. The Mr. Speaker, we are woefully unpre- culture Committee, including myself, Clerk will report the motion. pared to meet our energy needs for the are supporting efforts to amend the The Clerk read as follows: next 30 years. Some estimates say that shortcomings we see in that bill. And I Mr. Shimkus moves that the managers on our needs in this country are going to say to my friend from Michigan that I the part of the House at the conference on increase as much as 50 percent by the am going to have to oppose this motion the disagreeing votes of the two Houses on year 2030. So we are going to have to do to instruct at this time. And I agree the Senate amendment to the bill H.R. 2419 (an Act to provide for the continuation of ag- a much better job on not only looking with your position on this. But yet you ricultural programs through fiscal year 2012) at alternative forms of energy, we are know there are multijurisdictional be instructed to recede to the provisions con- also going to need to do much more on concerns that have to be addressed tained in section 9021 of the Senate amend- conservation, nuclear and a whole host with the Energy and Commerce Com- ment (relating to the E 85 Fuel Program).

VerDate Mar 15 2010 15:08 Nov 08, 2010 Jkt 069102 PO 00000 Frm 00130 Fmt 0688 Sfmt 0634 E:\BR08\H08MY8.005 H08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD 8274 CONGRESSIONAL RECORD—HOUSE, Vol. 154, Pt. 6 May 8, 2008 The SPEAKER pro tempore. Pursu- potash rose from $173 to $252. We can gas. Off-limits for crude oil. Let’s open ant to the rule, the gentleman from Il- just go on. It’s a huge, huge increase. up these areas. The environmentalists linois (Mr. SHIMKUS) and the gentleman Now we don’t want to come down to will say, oh, no, we can’t do that. One from Colorado (Mr. SALAZAR) will be the floor without bringing alternatives of our major areas for crude oil and recognized for 30 minutes each. and solutions. What’s the solution? The natural gas is the gulf. The Chair recognizes the gentleman solution is more supply. Guess what happened here? Katrina, from Illinois. Look at what’s happened. It’s not big storm, devastated New Orleans. A Mr. SHIMKUS. Madam Speaker, I disputable. Under this majority, crude major oil spill in the gulf? No, no yield myself such time as I may con- oil has gone from $58 a barrel to $123. I major oil spill. sume. come down almost every day. This We can do it cleanly, we can do it ef- Madam Speaker, as many people who price has not gone down. This price ficiently, we can bring more supply to have observed the House floor over the continues to go up. the market. You want to know how to past month, I have continuously come We have had promises made by Dem- lower prices for the farmers? Lower en- down to address the high cost of energy ocrat leadership. In 2006, I quoted them ergy prices. and the importance of bringing the before, Speaker PELOSI saying, ‘‘We But what’s our policy here? Can we supply issue to this debate. have a plan to drive down energy drill in ANWR? One of the things that we have been costs.’’ Majority Leader HOYER who ‘‘Forget it.’’ successful with, which is now under at- just spoke: ‘‘We have a plan to bring What about offshore? tack, it was once a success story, was down energy costs.’’ JIM CLYBURN: ‘‘We ‘‘Are you crazy?’’ E–85, ethanol and the entire debate of have a plan to drive down energy Clean coal? bringing more supply to this debate. costs.’’ ‘‘Out of the question.’’ This motion to instruct highlights The reality is, energy costs have Nuclear power? the importance of E–85 fueling stations gone up, not down, $58 a barrel to $123. ‘‘You’re just joking.’’ and developing that. For example, in What has that done for us at the pump? Well, what are we going to do about my home State of Illinois, I am very When the Democrat majority took the high price of energy? When you fortunate. We have 171 E–85 fueling sta- over, the price for a gallon of gasoline have no plan, you plan to fail. My tions. In my congressional district, I was $2.33 on average. What is it today, farmers, who are getting accused for can go all throughout my 30 counties on average, $3.66. high prices, have high prices because and fuel up with my flex-fuel vehicle Put in climate change tax, 50 cents, we have high energy costs, and we have E–85. $4.16 is what we would be paying today high energy costs because we won’t get with climate change. That’s not a plan. to supply. b 1715 In fact, it’s a plan to fail. If you don’t That’s why we want ethanol to suc- There are States in the Union that have a plan, you plan to fail, and that’s ceed. That’s the only thing we have cannot. An example, Maine, we the difficulty of our farmers getting done to bring more supply to this de- couldn’t get any information on. Rhode into the field. Diesel costs have dou- bate. Island has zero, Vermont has zero, bled, rising the price. Ethanol gets If we don’t address the high input Delaware has one, where other States, blamed. Ethanol gets blamed because cost, what’s going to happen is this like Minnesota, has 346. energy costs to get the corn out of the fuel-food debate is going to go crazy. I One of the issues of more supply is fields has gone up. You want corn was at the hearing. Guess what, there also more supply locations. When we prices down? We have got to lower this. is a call to roll back the ethanol renew- move to new fuels, as other people talk We have got to get back to the day of able fuel standard. about, if we move to a hydrogen econ- $58 a barrel crude oil. We can’t get Now, that really helps our energy omy, we are going to need hydrogen- there with no plan. We can’t get there independence, doesn’t it? fueling stations, and that’s all part of by every week saying we have got a Madam Speaker, I reserve the bal- the importance. plan, and there is no plan. ance of my time. This motion to instruct says let’s do There is a plan. We have brought Mr. SALAZAR. Madam Speaker, what the Senate did on the farm bill, them onto the floor numerous times. well, it appears that the gentleman’s and let’s talk about developing an E–85 What can we do? One is use our great motion to instruct will direct the infrastructure around this country so natural resources on coal in this coun- House conferees to accept the provision we can help decrease our reliance on try, 250 years worth of coal to be used of the Senate version of the farm bill. imported crude oil. Why? Because ev- using coal-to-liquid technology. Get The Senate farm bill contains a pro- erything we talk about on this floor re- coal from our underground, build a vision, section 9021, that would have volves around energy and the high cost coal-to-liquid refinery, pipe it, in this created a grant program to install E–85 of energy, especially for the producers case, to an Air Force base, pipe it to a pumps. The Energy and Commerce of our food. commercial airline. We have lost all Committee, who are also conferees in For example, manufacturer inputs these airline jobs because of high costs. the farm bill energy title, indicate that have increased 14 percent in 2008 on top This is what we do. had this plan is duplicative of section of a 12 percent increase last year. Guess what you can make: Diesel 244 that was included in H.R. 6, the En- That’s inputs to grow our food. Corn fuel. Diesel fuel. What is the farmers’ ergy Independence and Security Act of fertilizer costs $140 per acre for 2008, major input? Diesel fuel, because that’s 2007. We tried to avoid this duplication compared to $115 price in 2007, con- what goes in the tractors when you of programs between the farm bill and trasted to $63 per acre from 2001–2005. have got to plant the corn. That’s what the energy bill that was passed last What is driving up high farmers’ goes in the tractor when you have got year. input costs? No additional supply. A to harvest the corn or the beans, and While I agree with the gentleman lot of fertilizers are affected, all buy diesel fuel has cost. Truckers are going that ethanol is a very vital part of our natural gas. As we continue to restrict on strike. Independent truckers are energy independence program, we still our ability to go after more supply, we going on strike. have to make sure that we continue to push up the input costs, which drives A lot of these independent truckers move forward and that we do not derail up the price for food and this whole de- are hauling the beans, hauling the corn this current farm bill that we are pres- bate. to the elevator. Without a plan to ently working on. It is my under- I can go through all the huge in- lower cost of energy, you plan to fail. standing that my colleagues in the creases that our farmers have had to Coal-to-liquid is a solution. conference committee for the food con- do. DAP, prices rose from $252 per ton What is another solution? See all this servation and energy act have already in January, 2007, to $752 gulf price. red area? We don’t have Alaska on come to an agreement that is already Urea rose from $272 to $415, muriate of there. Off-limits. Off-limits for natural to be reported.

VerDate Mar 15 2010 15:08 Nov 08, 2010 Jkt 069102 PO 00000 Frm 00131 Fmt 0688 Sfmt 0634 E:\BR08\H08MY8.005 H08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD May 8, 2008 CONGRESSIONAL RECORD—HOUSE, Vol. 154, Pt. 6 8275 Nonetheless the chairman reminds Oh, please, don’t put a drilling rig, not take over 7 years to get the permits. us, all Members, that all motions to in- a platform out in the water. Oh, my Folks, we have to help our people. struct are really out of order because goodness, you get beyond 30 miles, no- They are crying out, and we need to do the conference committee report is body can see it from the beach. something now. ready to be filed. I know that adopting But what we found in the Texas coast Mr. SALAZAR. Madam Speaker, I this motion would obviously delay pas- is, despite all the naysayers saying it just wanted to remind the members on sage of the farm bill. was going to kill off the fish, what’s the other side of the aisle that the Fu- With that, Madam Speaker, I reserve happened, if you want to go fishing and ture Gen project which was actually on the balance of my time. really go where the fish are, they go track to be built in Illinois was actu- Mr. SHIMKUS. Madam Speaker, I around the platforms because they ally pulled from being built because of would like to recognize my colleague have become wonderful artificial reefs. its costly forecast. from Texas (Mr. GOHMERT) for 5 min- Man and environment can work to- So I would remind our Members on utes. gether to help each other. The Outer the other side of the aisle that coal is Mr. GOHMERT. Madam Speaker, this Continental Shelf, we may have the a very large part of our energy inde- is such a critical issue. You know, highest second supply of natural gas in pendent America formula; however, we have to do it in a clean way to make there are so many important things the world, some think we might even sure that we use clean coal-burning facing this country, whether it’s the have the most, but we have put it off- technology. However, that technology war on terror, the importance of FISA. limits and won’t go after it. But when you talk to people at home, has not been perfected yet. We have lost so many wonderful Mr. SHIMKUS. Would the gentleman it’s getting desperate. It is getting very union jobs because of the price of nat- yield since you mentioned Future Gen desperate, and they need help on the ural gas. I lost several hundred jobs out which is in central Illinois? price of gasoline. They need help on the of my district when a paper mill closed Mr. SALAZAR. I will yield. price of diesel fuel. because it ran on natural gas, and we Mr. SHIMKUS. I appreciate your What are we doing? We are hearing were paying the highest price in the yielding. people say, oh, we couldn’t possibly world because we wouldn’t utilize what I was one of the few Members who ac- drill ANWR. I am from Texas. Texas, we have. tually talked to the President reg- Oklahoma, Louisiana, we have got My friend has pointed out coal. We istering my disgust, frustration and States where we are doing everything are the Saudi Arabia of coal, according anger. I will say it is now up to my we can to pump up all the energy we to a lot of experts, and yet we put it friends on your side of the aisle, both can to help the rest of the country. off-limits. President Carter put a huge in the House and on the other side of We need some help. We have got all amount of our coal off-limits. We are the Capitol to help move on a strategy of these other resources, and they are the only advanced nation that takes to keep Future Gen on track. being put off-limits. They are being our greatest resources of energy and We have a strategy. We are working kept off-limits, and we have heard from puts them off-limits. in a bipartisan manner. Coal is critical some on the other side, well, drilling Nuclear. Now I am not one to advo- to our national security, low cost fuel. doesn’t really bring down the price of cate mimicking France over anything, I am begging the legislative leaders on fuel. but they have about got it down on nu- your side, which they can do by putting You know what? We are told from clear. We could follow their example Future Gen legislation on must-pass some of the experts, 20, 30 percent is and provide so much energy. Refin- legislation, funding it, and Future Gen speculation. These speculators are eries, the bills we keep passing out of can stay alive. But I am not in the ma- smart. They see that every bill that’s this Congress, out of this committee I jority now. I am glad you mentioned it, come out of this House for the last 16 am on, it makes it harder to open re- and I call upon your side to make it so. months does not provide any answers fineries. That makes the price go up. Mr. SALAZAR. I agree with the gen- to getting us more energy any time Speculators see that. tleman. I agree this is something that soon. If we had an announcement today, we have to move forward on, and it can be done in a bipartisan fashion, making Talk about ANWR. Now, it was point- tomorrow, from Speaker PELOSI and sure our environment is taken care of. ed out yesterday in our Resources Leader REID that, by golly, next week We also have to employ other nations Committee that really this area that is we’re going to drill ANWR, we’re going as well. In China, they are building a proposed for drilling is not part of to drill Outer Continental Shelf, we’re coal-fired plant once a week, that’s ANWR. It was a section set aside by going to start supplying more of our Jimmy Carter to make sure that we what I hear. Maybe even more. So we energy needs until we can bring all have to do it in a worldwide fashion had an area that we could develop. these alternatives on line, that 20 to 30 Now we are told that perhaps once a type of legislation that would actually percent would go down. create that clean coal burning tech- year caribou may come through this I would be willing to bet you that we area of ANWR, and, oh, my goodness, if nology. would lose a dollar off the price of gas- Madam Speaker, I reserve the bal- we put a drilling rig out there, it may oline within a week’s time because the ance of my time. destroy our caribou. We heard the same speculators would say, whoa, they are Mr. SHIMKUS. Madam Speaker, may thing back some years back, that if we really serious about providing their I inquire how much time I have re- put a pipeline through some of this own energy needs. maining? area up north it was going to kill off We had a report last week, that it The SPEAKER pro tempore. The gen- the last 27 head of caribou. turns out a lot of the experts believe tleman has 16 minutes. You know what happened? The pipe- that we may be able to get three to five Mr. SHIMKUS. I yield the gentleman line went in, that oil is warm going times the amount of oil left in the en- from Tennessee (Mr. WAMP) 10 minutes. through that pipeline, and what hap- tire Middle East from our shale in Mr. WAMP. Madam Speaker, the re- pened is it makes the caribou amorous. Utah, Colorado, and Wyoming, three to ality of 2008 is that the nexus between Now when caribou want to go on a five times. They are saying there are national security, energy, and the envi- date, they invite each other to go over maybe 900 billion barrels of oil left in ronment is the most important public to the pipeline. We are up to 30,000 head the Middle East, maybe a trillion, and policy issue that we face in this coun- of caribou now because of what the we may get 3 to 5 trillion barrels recov- try. The nexus has a lot of different an- warm pipe has done for the good of the erable from shale in areas so much of gles to it, but these three issues to- caribou community, so it’s going well. which is off-limits. gether is the greatest policy challenge We are told we can’t drill the Outer that we face. Continental Shelf. About 97 of our b 1730 The farm bill is now in a sense an en- coastlines are unavailable. We heard In some cases they say, well, we’ll ergy bill. The national security chal- the same thing in Texas years back. give you an 8-year lease, but it will lenges that we face are indeed tied to

VerDate Mar 15 2010 15:08 Nov 08, 2010 Jkt 069102 PO 00000 Frm 00132 Fmt 0688 Sfmt 0634 E:\BR08\H08MY8.005 H08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD 8276 CONGRESSIONAL RECORD—HOUSE, Vol. 154, Pt. 6 May 8, 2008 the cost of oil. Unfortunately, these the cost is prohibitive today, we can’t warming, anybody in this place who are the realities of what we face today. pay $300,000 for a car, so we can’t have says they are for cleaning up the air Tomorrow in Oak Ridge, Tennessee, hydrogen fuel cell cars yet, but that globally and making progress on zero at the Oak Ridge National Laboratory technology is out there. And maybe it emissions and carbon sequestration which is one of the lead laboratories in will work. and reducing the carbon footprint and our country on alternative fuels, But I will tell you what will work they are not for nuclear, they are kid- biofuels, research, mostly looking at right now in the marketplace is elec- ding themselves because it has got to cellulosic ethanol research and how to tric cars, and they are coming quick. be a part of the portfolio given the ca- best bring that about, tomorrow at Plug-in hybrids, GM and Toyota, the pacity demands of today and tomor- that laboratory my senior Senator, year after next, will be commercially row. Senator LAMAR ALEXANDER, will lay viable at a price point such that con- And if we are going to plug our cars out a Manhattan Project style ap- sumers will use them. So fuels are im- in, capacity has to increase on energy. proach to energy. portant, but technology is going to de- It is an all-of-the-above strategy. I don’t want to preempt what he is velop. Transportation is two-thirds of Just today in the House, Congress- saying there tomorrow, but he is joined our oil consumption, and we have to man STEVE BUYER, with me as an origi- tomorrow by Congressman BART GOR- move quickly there because this is nal co-sponsor, introduced the Main DON, a Democrat from our State who very, very painful. Street U.S.A. Energy Security Act. It happens to be the chairman of the But here is the technology oppor- opens the Outer Continental Shelf to Science and Technology Committee tunity for the United States of Amer- responsible energy production. It al- here in the House on a Manhattan- ica, and I call this the in-tech agenda. lows energy development within the style approach because of this nexus, How did the budget get balanced for 4 ANWR. It streamlines the refinery per- because there is a lot of clamor about years here? I was here. I think SHIMKUS mitting process assisting new refin- global warming and because people are was here. Four years ago, LEE TERRY eries to be built in the United States looking to our country to take some was here. For 4 years in a row it got for the first time in 30 years. It sup- leadership, and the President of the balanced, not by cutting spending. We ports the development of coal-to-liquid United States has said we do need to did slow the growth of spending below plants. It supports the building of more lead. I believe this is an opportunity inflation for 4 years which was very ad- nuclear plants. It provides a 3-year pro- for us. mirable because that hadn’t been done duction tax credit extension for wind, But I will tell you what my position in 40 years. But what we did do is we biomass, geothermal, and many of the is on energy, and this is after 8 years as had such a robust, export-driven U.S. renewable investments. It invests in re- the Republican co-chairman of the Re- economy that revenues surpassed ex- search and development programs for newable Energy and Energy Efficiency penses. That’s how the budget got bal- the energy needs of tomorrow. Caucus in the House of Representa- anced. You say, What are you doing intro- Now what drove the revenues up? tives, which is over half of the House, ducing that today? Well, that is just a Well, guess what, we led in an area of package of things that we are reintro- it is about 60 percent Democratic mem- the economy, and it boomed with our ducing again that we voted on in this bers and 40 percent Republican mem- leadership, called the information House over and over and over and over bers. I have chaired it for 8 years with world. Bill Gates and people like him again in the last 14 years because I MARK UDALL. I am the chairman of so led the world that if you wanted the counted, and it is dozens and dozens of that, but my position on energy is an best in software and computers, for a times that we have had these votes, all-of-the-above position. It has to be long period of time they were from this and the people who were for more ca- an all-of-the-above position. We cannot country. I grew up when you didn’t pacity lost. On the floor of this House, pick winners and losers. They did that want to drive an American-made car. on the floor of the Senate, we lost. in California and the lights went out. You didn’t want to have an American- Bill Clinton vetoed the bill to open You can’t pick winners and losers, not made television; for a while it had to up oil production in Alaska. I’m not when we have the capacity challenges be Japanese. Cars had to be German. picking on him. Maybe that is what that we have today. And we do have ca- Things changed. We led in the informa- people wanted then, but they sure pacity challenges everywhere. tion world, and revenues surpassed ex- don’t now. Why are we not responding? At $122 a barrel, this is a supply-and- penses. Why is our head buried in the sand? We demand problem. If the people who Guess what can happen early in the have to have an all-of-the-above policy don’t like us around the world that 21st century if we get off our tails: we to compete. And we can balance the produce oil would increase the supply, can lead in energy technologies. We budget again. It is good for us. The the price would go down. Or if the de- can solve the world’s problem by being world sees us reducing our carbon foot- mand would reduce by conservation proactive and not even beat a retreat print, leading with new energy tech- and not so much growth in India and on climate change. I don’t want to nologies and solving the world’s prob- China, the price would go down. But argue about how much man contrib- lems. this is a supply-and-demand problem. utes to climate change because, frank- We sat on the couch from 1973 to 2008. We have to have an all-of-the-above so- ly, the science is not clear on that. But Since the oil embargoes of 1973, we sat lution. it is an opportunity for us because if on the couch as Americans and didn’t Let me talk about a few things be- we provide these technology solutions make the changes we needed to make. cause transportation is the big driver, to the world, the budget will get bal- And now we are in a mess. A $122 a bar- and gasoline is the most painful thing anced again with a robust manufac- rel mess. But we sat on the couch. for the average consumer. I would sug- turing-driven U.S. economy. Part of an Guess what happens when you sit on gest to you today, and Members say all of the above. the couch and you don’t exercise and this a lot, but I know a lot about this, We should provide the nuclear solu- you don’t get ready; that’s where we alternative fuels are only a bridge to tions to the world and not be afraid of are. We have to change. the future. They are not the end all. it because, like the speaker said, in You cannot vote against energy ca- That is not where we are going to end France and Great Britain and the pacity in any segment of our economy up in terms of transportation. Netherlands and other countries, nu- or energy production without ending We have such quick development in clear is very much a part of their port- up either the lights go out or the price ion lithium batteries that the people in folio because they have a balanced is too high, access is not there, and the auto industry will tell you that we portfolio, because they know they need people are hurting. That’s where we are will be plugging in our automobiles to do these things in order to reduce today. It is an all-of-the-above strat- very, very soon at a cost-competitive their emissions. egy. price point, not like the hydrogen fuel While we are going to vigorously de- Let me close on this note. I am a con- cell which is a 25-year proposal because bate next year this issue of global servative, and conservation is a good

VerDate Mar 15 2010 15:08 Nov 08, 2010 Jkt 069102 PO 00000 Frm 00133 Fmt 0688 Sfmt 0634 E:\BR08\H08MY8.005 H08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD May 8, 2008 CONGRESSIONAL RECORD—HOUSE, Vol. 154, Pt. 6 8277 thing. People can begin to reduce de- new one installed and drive away in a on the other side of the aisle for many mand by conserving, and consumers matter of minutes rather than waiting of his comments. I understand that can join us. We need to do better, and for it to be charged up. this is a very important issue here in so does the consumer in this country. b 1745 America today moving America for- Use less, be sensitive to lights, drive ward towards an energy independent less, move to smaller vehicles; demand All these options are available, and America. goes down and price goes down. We I’m here to say they’re available today. Madam Speaker, however, it is my I would also dispute, however, the as- need to do that, and it is not wimpish understanding that my colleagues on sertion that nuclear power is non-emit- to propose that. It is a good, solid, pro- the conference committee for the Food ting, that nuclear power is clean. First American thing. Let’s be more effi- Conservation and Energy Act have al- of all, nuclear power does give off cient, let’s move to alternatives. But ready come to an agreement that is greenhouse gas emissions because, in I’m saying an all-of-the-above strategy. ready to be reported. We have a title, the process of mining and milling and Don’t say we can do all of this with re- which is the energy title of the farm transporting nuclear fuel, there are newables. It is not there to meet to- bill, which directly deals with agricul- fossil fuels burned. morrow’s demand. We have to have all There are, in my very district, in tural issues and renewable energy and of the above. Some things are long fact, strontium, nydium, tritium, cellulosic-based ethanol. As a matter of fact, the energy title term and I know that, but right now we among other cancer-causing radio- creates a $1.01 per gallon cellulosic eth- have to respond. This takes a balanced active particles being released into the anol tax credit to 2010. It also has in approach. groundwater and even under normal $1.01 per gallon is based on a 56 cents I thank Members from both sides who operations, into the air. have that attitude, and I look forward And lastly, of course, the spent fuel per gallon tax credit, producers credit, to tomorrow at the Oak Ridge National has to be transported, again using fos- and it has a 45 cents per gallon blend- Laboratory. sil fuels, to a repository, which may be ers credit. The total tax benefit is $400 Mr. SALAZAR. Madam Speaker, I Yucca Mountain whenever that hap- million. commend the gentleman for his leader- pens to be opened. And as the gentleman knows, we are ship in the Renewable Energy Caucus In the meanwhile, every nuclear currently in a budgetary strain. We and his efforts to try and develop fu- plant and every nuclear shipment is a have PAYGO rules which we must ture products that come from renew- potential terrorist target. We know abide by. I think that adopting this able energies. that Mohammad Atta wrote, for in- motion would delay the passage of the Madam Speaker, I would like to yield stance, in the papers that were found farm bill. And the chairman reminds 5 minutes to my good friend from New after 9/11, about canvassing New York all Members that motions to instruct York (Mr. HALL). City, flying on commercial airliners, are basically out of order at this time, Mr. HALL of New York. Madam and that he took notes about a nuclear being that my colleagues in the con- Speaker, I thank the gentleman and I plant that he flew over as a potential ference committee have come up with thank my friend from across the aisle target that we believe to be Indian an agreement and they are ready to re- for his comments on conservation and Point. port this. the sharing of the same root between So I would remind those on both Madam Speaker, I yield back the bal- conservatism and conservation. Per- sides of the aisle that our diplomatic ance of my time. haps he would be willing to tell our stance around the world has been one Mr. SHIMKUS. Madam Speaker, I Vice President who said a few years of trying to stop other countries from want to commend my colleague from ago that conservation may be a per- taking a ‘‘peaceful nuclear program Colorado. I’m an aggie. I don’t serve on sonal virtue, but it is no way to build and turning it into a military nuclear the committee. And the agricultural a national energy policy, that he is program.’’ It’s a very gray area and a sector is one of the few sectors that we wrong. I am pleased to hear Members blurry line once one learns how to en- have increased supply. So I do this of this body on both sides of the aisle rich fuel. It’s only a matter of how far with all due respect. voicing that opinion, that conservation one enriches that fuel. My concern is that when we efficiency in effect has to be part of our So there are some things that we disincentivize the E85 fuel stations, the national energy policy. agree about. I totally agree that we cellulosic debate, which is the next I also was happy to hear his com- need a moon shot technology revolu- bridge to get us to the RFS standard ments on electric cars. In Israel, which tion. We need to put all the resources that we passed in December, we can’t I visited last August, and which I of this country that we can behind this, get there without RFS, without cellu- would like to wish a happy 60th birth- and that American ingenuity can solve losic. And we’re sending a bad signal day to, Israel is leading the way on not these problems. when we have States without any fuel- just solar energy in which they are col- But speaking as one who’s burning 20 ing stations and we have States that laborating with a California company percent biodiesel in my home heating do. And so that’s what brings me down. on a huge solar photovoltaic project oil, who’s getting 1,500 kilowatt hours a And I’m glad my colleague from New which will provide today, this is not month from wind power, who’s driving York talked about nuclear power. The some distant time in the future, today an American-made hybrid today that former head of Greenpeace now sup- will provide enough electricity for gets 33 miles per gallon, and an SUV ports nuclear power. The former head 400,000 homes. Solel, Inc., is the Israeli with 4-wheel drive, not a little tin can, of Greenpeace now supports nuclear company and Pacific Gas and Electric but actually a pretty sizeable vehicle, I power. is the partner here in the United think these technologies are available Coal generating electricity is 50 per- States. Not only are they a leader in if they’re given the proper incentives, cent of our electricity generation in photovoltaic solar electric power, but tax breaks and subsidies today, and if this country. 50 percent. Nuclear’s 20. they are pioneering in Israel, as we we lead the way in government with Our demand’s going to increase 30 per- could be in this country, electric cars preferential purchasing and the deci- cent in the next 20 years. that travel from one station to another sion-making that we make as the pow- Texas tried wind power. They had and instead of charging the battery, erful government that we are. brownouts. ZACK WAMP is right. We they just switch it. They are working So I’m happy to be a part of this ex- need more supply. This is what China’s on a battery that will be interchange- citing time in our energy history. doing. China is building 40 nuclear able between all cars. So one can drive Mr. SHIMKUS. Madam Speaker, I plants in the next 15 years, not one. We up to the gas station which will now be would like to save my time to close, so haven’t done one in 30. China’s going to an electric station or whatever fuel one I would reserve the balance of my time. build 40. moves toward, remove the old battery Mr. SALAZAR. Madam Speaker, I China’s invested $24 billion in large that is run down, immediately get a would also like to thank my colleague scale coal liquification technology.

VerDate Mar 15 2010 15:08 Nov 08, 2010 Jkt 069102 PO 00000 Frm 00134 Fmt 0688 Sfmt 0634 E:\BR08\H08MY8.005 H08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD 8278 CONGRESSIONAL RECORD—HOUSE, Vol. 154, Pt. 6 May 8, 2008 China is rapidly expanding its refining the corn, they’re in a tractor. When sent to waive the reading of the mo- capacity. One of the reasons we com- they harvest the corn or the beans, tion. pete is because we had low cost power. they’re in a tractor. It’s run by diesel The SPEAKER pro tempore. Is there We don’t have low cost power anymore. fuel. objection to the request of the gen- Those days aren’t here. Renewable There’s an attack on ethanol today. I tleman from Nebraska? fuels aren’t going to fill the gap that was in committee today, I mean, 2 days There was no objection. we have. ago, let’s stop the RFS. It’s the only The SPEAKER pro tempore. Pursu- So we have to do, as Zach said, all of thing that we have. And why is it ant to the rule, the gentleman from the above. In a column, Robert Sam- under attack? Because input cost to Nebraska (Mr. TERRY) and the gen- uelson said, what to do about oil? The production of commodity grain has tleman from Colorado (Mr. SALAZAR) first thing, start drilling. It’s the easi- gone up because we can’t get low price will be recognized for 30 minutes each. est, quickest thing we can do. Unless diesel fuel. The Chair recognizes the gentleman you want to put up with this. Unless When we harvest the corn we take it from Nebraska. you want more, and, you know, you’re to a grain elevator. We do that with a Mr. TERRY. Madam Speaker, I rise a rural farm boy in Colorado. big diesel truck, a big tractor trailer. today with my motion to instruct to I try to remind people here that in We have independent truckers striking. make sure that we keep a tax credit rural America we like big trucks. We They drove around here a couple of that the Senate has in its version of have to have working trucks. We can’t weeks ago, big signs. We can’t afford the farm bill for cellulosic energy and haul a horse trailer with an electric en- the high cost of diesel. the blending. It’s a dollar tax credit, gine, with a four-cylinder engine. It And we know costs get passed on. and that’s important that we have the won’t go anywhere. We need powerful What’s some Democrats’ response? Oh, higher number because cellulosic en- trucks. We need trailers. We need we’ve got a great idea. Let’s tax the en- ergy or cellulosic ethanol, I think, is working trucks. ergy companies more. where we are going to move to for our That’s fossil fuels. That’s diesel. We My challenge is, when have we ever midterm energy strategy in this coun- can’t pay these gas prices anymore. raised a tax that’s lowered the price to try, and that we really are at the very And we’re going to. Don’t get me on a consumer? And I’ve challenged peo- embryonic stages of its development, climate change. All I want is trans- ple; give me one example where we as I’m going to show here in a few min- parency. raised the tax and costs went down. No utes, and that because we are at the be- If we’re going to tax the American one’s challenged me. And I’m sure peo- ginning stages of cellulosic energy, public they need to know they’re going ple will look at that. taking it literally from the research to pay 50 cents more a gallon. And my Another thing is let’s demand that laboratories to the experimental mar- charts are way over. the people we’re reliant on, pump more ket, trying to produce it more than at Why can’t we go here? Why? Why crude oil. Oh, that helps us not become 1 gallon at a time, that we will need to, can’t we access these areas to get nat- reliant on imported cried oil. Let’s de- more heavily subsidize these beginning ural gas? Anhydrous ammonia, the mand that the people who are pro- processes. Number 1 commodity input, natural viding us oil pump more. That’s why b 1800 gas. I’m so frustrated with this. I hope you And what has your majority done? understand. We need to lower prices. Now, I’m going to build our argu- You put areas off-limits. We’ve got The SPEAKER pro tempore. Without ment here of why I feel that cellulosic areas in your State in the last year we objection, the previous question is or- energy or cellulosic ethanol is impor- put off-limits. We didn’t bring on more dered on the motion to instruct. tant and why we need the $1 credit supply. There was no objection. versus the lower number that was in Great solution. China’s doing it, tak- The SPEAKER pro tempore. The the House version to get to our ulti- ing coal, gasifying it. When you gasify question is on the motion to instruct. mate goal here, which is energy inde- it you can burn electricity. You can The question was taken; and the pendence. capture the carbon. It’s a clean way to Speaker pro tempore announced that And by the way, I define ‘‘energy do it. We can’t do it. the noes appeared to have it. independence’’ as not relying on OPEC For every dollar increase in a barrel Mr. SHIMKUS. Madam Speaker, on countries. We will need to use the nat- of crude oil, do you know how much that I demand the yeas and nays. ural gas and oil from Canada, and we the taxpayers have to pay to fund the The yeas and nays were ordered. will need to, for a variety of reasons, Air Force? 60 million additional dol- The SPEAKER pro tempore. Pursu- use the oil from Mexico; but wouldn’t lars. Our Air Force is the number one ant to clause 8 of rule XX, further pro- it be great if we were in a position that jet fuel user in the world. They’re beg- ceedings on this question will be post- we didn’t have to use the oil that’s pro- ging for help. It’s crazy. poned. duced by countries that don’t like us, We are relying on imported crude oil. f that really hinders, as the gentleman from Tennessee, ZACH WAMP, men- Our national security depends on avia- MOTION TO INSTRUCT CONFEREES tioned. Our foreign policy, we have to tion fuel, and we are constrained by ON H.R. 2419, FOOD AND ENERGY counsel, we have to do things for coun- imported crude oil. Don’t you think SECURITY ACT OF 2007 it’d be better to use our known natural tries that really are trying to harm us resources to help our Air Force to fly Mr. TERRY. Madam Speaker, I have economically, like Venezuela is right our planes? a motion to instruct at the desk. now. Coast Guard authorization bill, $1 in- The SPEAKER pro tempore. The Now, the bottom line here, the bot- crease. $1 dollar increase in Coast Clerk will report the motion. tom line here is that every citizen of Guard authorization diesel added $24 The Clerk read as follows: the United States is paying higher million to the cost of the Coast Guard Mr. Terry moves that the managers on the prices at the pump. They are paying to protect our border. part of the House at the conference on the more of their family budget to get to disagreeing votes of the two Houses on the and from work, to and from the gro- Mr. SALAZAR. Will the gentleman Senate amendment to the bill H.R. 2419 (an yield? Act to provide for the continuation of agri- cery store, and they’re upset and right- Mr. SHIMKUS. Yes, sir. cultural programs through fiscal year 2012) fully so. So I am asked frequently, Mr. SALAZAR. I just wanted to ask be instructed to recede to the provisions con- what is the plan. Well, the problem is the gentleman, what does this have to tained in section 12312 subtitle C of title XII there really isn’t a cohesive plan. We do with the farm bill? of the Senate amendment (relating to a cel- do know that it is an issue of supply Mr. SHIMKUS. These are input costs. lulosic biofuel production tax credit). and demand. You know the diesel price has doubled. Mr. TERRY (during the reading). Now, we’ve nibbled at the edges in an I mean, my farmers, when they plant Madam Speaker, I ask unanimous con- earlier bill this year that was signed by

VerDate Mar 15 2010 15:08 Nov 08, 2010 Jkt 069102 PO 00000 Frm 00135 Fmt 0688 Sfmt 0634 E:\BR08\H08MY8.005 H08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD May 8, 2008 CONGRESSIONAL RECORD—HOUSE, Vol. 154, Pt. 6 8279 the President in December on the de- costs so I’m actually paying more. Where are we, and I’m getting back mand part. We did things to help Well, that’s not true, but we’re not to my friend from Colorado to why we incent electric cars, hybrids, battery hearing about it in our media. need the higher, the $1, the higher technology; and probably the key com- The reality is that today, because of amount for the blending credit. ponent or foundation of that demand ethanol being blended into gasoline and USDA and Department of Energy are bill or lowering demand of oil was in- that major difference of what you partnering together—it’s nice to see creasing the fuel efficiency of cars and would pay at the pump, it would be as two of our agencies actually working light trucks. That was called the Hill- much as 40 cents more, maybe 60 cents together—to open up several cellulosic Terry bill. So I was one of the co-au- more, according to that information. ethanol plants over the next 2 years. thors of that bill, and we got that in So actually the consumer is saving They will produce a small amount, there. And that will increase fuel effi- around $305 to as much as $420 a year maybe 10 million gallons to start with, ciency by 40 percent, in stages, to 2020, because of ethanol. but if we can’t use this product in the where I really see that we’re going to Now, every study that I have seen market and blend it, because we all end up earlier meeting those goals be- has shown that the direct impact of know this is first generation so it’s cause of battery technology and eth- ethanol, that part of the corn crop going to be expensive. It’s going to be anol. that’s diverted from feed or shipped to about $5.50 a gallon to produce this We already have some vehicles out on be manufactured into food, impacts with the first-generation technology. the road today using ethanol blends as about 5 cents on a box of cereal. Every They will get it down to $3, but if we high as 85 percent that are hybrid. So study that I have seen from Texas can’t get past this first generation you’re combining ethanol, lowering the A&M, the government, University of stage, we’re never going to get to sec- amount of oil that we have to use and Nebraska has said it is about 3 percent ond, third, fourth generation. So we refine, and battery technologies at on grain-related foods. 3 percent. But need that higher level of subsidy or lower speeds: for example, the Ford Es- yet you’re saving 15 to 20 percent at blending credit to make sure that the cape. the pump, and it is helping you in to- product that comes out of the new cel- Now, let me broach into an area here day’s world. lulosic ethanol plants is being used that I think is important for people to Now, let’s talk about cellulosic. Cel- within the market. understand because our midterm strat- lulosic is where you take a biofeed Now, my expectation is while maybe egy, at least as I envision it, is going to stock, it can be just about any living, 2 to 3 years from now we’re producing involve ethanol. And for some reason, growing thing, and you use an extra maybe 50 million, that’s a drop in the ethanol has been blamed for every ill step in the process to take this and barrel, by the way, 50 million gallons; I that has occurred globally. There has break down the gluten, kind of the glue really think that with this type of a been severe droughts that have affected that holds the cells together, that blending credit that we can then dou- rice crops, and yet I read in U.S. papers holds the sugars; and when we are able ble and triple and quadruple and maybe that that’s caused by ethanol. It’s baf- to dissolve those, then you can extract tenfold that 5 to 10 years later. And fling how they make this connection, that and create ethanol. then we couple that with hybrid and and it’s wrong; but yet it seems like Now this type of ethanol, by the way, electric technology, and man, I really ethanol is causing more problems, as has a higher Btu rating and has more am optimistic about the future of our related by the media, than President energy involved in it. So actually this country. Bush is. Maybe President Bush is ethanol goes further for us. Now, the gentleman from Colorado, I happy that ethanol is pushing him off What type of products can we use? have one speaker that would like to the front page. I don’t know. Well, you can use things like say a few things. Do you want to take All I know is most of what you’re switchgrass. You can use wood pulp. some time right now or let us finish up reading about ethanol is completely You can use sweet sorghum. You can and you can have some time and I will bogus. And even people in the Corn use anything as long as it’s a living, take 1 minute for close? Husker State are now starting to tell growing organism. You don’t have to I yield to the gentleman from Colo- me, We can’t rely on ethanol. We’re use food. So that’s why it’s important. rado. learning that this is bad, because I am Now, I’m going to say that ethanol is Mr. SALAZAR. I appreciate the gen- paying more at the grocery store. My here to stay, but I do believe ethanol, tleman. eggs are more expensive because of eth- based on corn, is going to hit a ceiling; Let me just say I agree with you on anol. Huh? Well, okay. Maybe some of and so cellulosic, if we can then use everything that you have said to this the grain-related foods have been im- these types of bioproducts and create point. Ethanol is being blamed for the pacted by ethanol. more energy or liquid fuel, then that is high cost of food prices. But what the I want to show you a few charts here. more that we can displace. And we will news media forgets to tell you is that And by the way, these studies are done need a complete national energy strat- we’ve had the shortest wheat crop on by the government. They’ve been re- egy, and that’s why I was curious when record worldwide for many, many ported in The Wall Street Journal and ZACH WAMP came up here and talked years. They also forget to tell you that other major business magazines. about LAMAR ALEXANDER announcing because this country continues to bor- First of all, the problem with the his energy plan using one of our biolabs row money from China, the value of higher prices at the grocery store in that’s doing work on the cellulosic the dollar continues to go down, and so total is because of increased energy area. And I think their focus in that developing countries, like China and costs. The price per barrel of oil closed lab has been on switchgrass and wood India, can now afford American food short of a $124 today. It’s grown dra- pulp. And so that will be interesting. products. So it creates a larger de- matically, and ethanol is actually But the beauty of cellulosic is not mand. helping with those energy costs. Every only that it gets us much closer to en- The Congressional Research Service report that I have seen, and we will use ergy independence but that every re- issued a report that shows that be- this chart, has shown that we would be gion of the country has something to tween 40 and 50 percent of the price of paying much more at the pump today offer, whether it is wood in the north- food at the grocery store is dependent, if it were not for the ethanol that we’re east or northwest, or algae; directly dependent on the cost of trans- blending. switchgrass, and even in my State you portation. I agree with you on that. Here is a chart that shows today’s av- can go from switchgrass in the Mis- You also talked about the issue of erage price at the pump of $3.65. That souri Valley area where I live to corn holding the $1 tax credit, which the would be $4.20 at the pump today if we to sweet sorghum out in the dry parts Senate has approved. It is my under- didn’t have the ethanol to blend. because sweet sorghum grows stalks 12 standing that the Conference Com- Now, you’re saying, well, that’s great feet tall and requires less than 12 mittee has agreed upon that. As a mat- but, you know, it’s driving up the food inches of rain. ter of fact, what has been created is

VerDate Mar 15 2010 15:08 Nov 08, 2010 Jkt 069102 PO 00000 Frm 00136 Fmt 0688 Sfmt 0634 E:\BR08\H08MY8.005 H08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD 8280 CONGRESSIONAL RECORD—HOUSE, Vol. 154, Pt. 6 May 8, 2008 $1.01 per gallon cellulosic ethanol tax And it’s 653 days after Democrat the outer continental shelf, such as credit through 2010. The $1.01 per gallon Whip JIM CLYBURN said, ‘‘House Demo- creating other resources, such as cellu- is based on the 56-cents-per-gallon pro- crats have a plan to help curb rising losic ethanol, would be providing us ducer’s credit, and then the 45-cents- gas prices.’’ what we need. per-gallon blender’s credit. This should All of these statements were made in And I also agree, again, with Rep- incentivise people to start or compa- 2006 when the Democrats were making resentative WAMP that energy inde- nies to start producing ethanol from statements to fool the American people pendence means to me we are not going cellulosic material. on what they could do to make things to be dependent on OPEC countries. We I believe that the Nation is capable of different. don’t want to be dependent on people producing a sustainable supply of Well, they got elected. They’re now who hate us. We don’t want to help fuel about 1.3 billion tons of biomass per in leadership and what do we have? the terrorists. One of the things that year. As you know, across the Western Blaming. We’re looking for this secret we’re doing is providing money for the States of America, many trees have plan that they have. They’ve never terrorists to fight us, and we don’t need died because of the bark beetle prob- brought it forward, and we’re still to be doing that. lems. This is biomass that we can actu- waiting for it, months, years after they We do need to conserve. We do need ally utilize to produce alcohol to fuel promised it, 2 years actually after to use every resource available to us in our vehicles. Speaker PELOSI promised that they had this country, and it is time that the b 1815 a plan to do this. Democrats exert some leadership in We have all the quotes on this and this area instead of blaming George I believe that the 1 billion tons of the dates. Again, April 2006, October Bush and blaming others for the prob- biomass would be sufficient to probably 2005, July 2006 are the dates, but what lem that we’re facing. They absolutely displace 30 percent of our country’s they’ve done is they’ve raised taxes refuse to take charge of what’s hap- present petroleum consumption. So I do agree with the gentleman. four times since they’ve been in office pening here. Mr. TERRY. Thank you. I do appre- on energy in this country, and what I heard today on a radio program ciate those comments. It’s good to they do then is blame the President. that there is a theory that they want know that that is what is in the report. Most people know, I think, that the to make the American people as miser- Many of us have not been able to see President can’t pass laws. All the able as they possibly can because the report language yet to know what’s President can do is sign them or veto President Bush is still our President, in or what’s not. So I appreciate you them. It is our responsibility to do and they are so good at blaming him letting me know that’s in there. something about the way this country for things rather than accepting re- At this time, I would like to yield to is operated in terms of laws. We oper- sponsibility for their own actions. I the gentlelady from North Carolina ate under the rule of law, and it’s no think that has to be one of the most (Ms. FOXX). coincidence that article I of the Con- cynical things that anybody could pos- Ms. FOXX. Madam Speaker, I thank stitution is about the Congress and sibly be doing in this country. It’s our my colleague for yielding, and I really about our responsibilities, but the responsibility here to do everything appreciate the good work that was Democratic leadership has failed mis- that we can to help the American peo- done by my colleague from Tennessee, erably in dealing with those respon- ple, not do everything that we can to ZACH WAMP, and my colleague from Il- sibilities. make them miserable. linois, JOHN SHIMKUS, on this issue of I also agree with Congressman WAMP I want to give you a quote from In- what do we do about energy independ- that this is a national security issue, vestors Business Daily from April 29, ence, what do we do about ethanol, and that in addition to providing addi- 2008. The title of the article is ‘‘Con- what do we do about the alternatives tional supplies of energy, we must do gress vs. You,’’ and one of the quotes, that we have. conservation and we must be more effi- ‘‘The current Congress, led on the And I think it’s important that we cient. I don’t think anybody on our House side by a Speaker who promised continue to point out the problems side of the aisle disagrees with that. a ‘common sense plan’ to cut energy that we’re facing in this country on However, we have to do something to prices 2 years ago, has shown itself to achieving energy independence and to increase the supply. be incompetent and irresponsible.’’ point out that we are dealing with ba- We are dealing with a short-term and Again, we have quote after quote sically a do-nothing Congress in terms mid-term and long-term issue, and part after quote from business journals and of this issue. We are not dealing with of the problem that we’re dealing with from responsible people to show us that this issue now, and I share the concern is the fact that in 1995 President Clin- the problems that we’re facing now are that my colleague from Nebraska Mr. ton vetoed the bill that would have al- not based in our situation with the war TERRY expressed about how every- lowed us to drill in ANWR. We have but is based in the incompetence and thing’s being blamed on ethanol and radical environmentalists who basi- the do-nothing of this Congress. George Bush. cally believe, if all the human beings in And again, let me point out, Presi- The Congress likes to blame George the world were to disappear, the world dent Clinton vetoed H.R. 2491, the Bal- Bush for everything, thinking that’s would be a better place because we’re anced Budget Act of 1995, which would the mood of the American people, and the ones to blame for all of the prob- have allowed environmentally respon- the leadership thinks it can deflect any lems that we have in this country and sible exploration for an estimated 10.4 responsibility for the problem that in the world. billion barrels of oil in a tiny sliver of we’re seeing now. I don’t believe that. I believe the ANWR. Senate Democrats have twice But I want to point out that right good Lord gave us the resources that blocked energy exploration in ANWR now gasoline is $3.64 a gallon on aver- we need and the brains to use those re- via the Energy Policy Acts of 2003 and age. That’s 56 percent higher than sources and extract them. We should be 2005. They have voted ‘‘no’’ on the when Speaker PELOSI was sworn in, and drilling in ANWR. I’ve been to ANWR, American-Made Energy and Good Jobs it is 745 days after she promised this: I’ve been to Alaska, I’ve seen what hap- Act which would open ANWR to explo- ‘‘Democrats have a commonsense plan pens there. The people who are opposed ration, over and over again. They’ve to help bring down skyrocketing gas to drilling there won’t even go to Alas- said no to new refineries. They’ve said prices.’’ And that was when gas was ka to see the situation there. I think no to the Energy Policy Act. As others just about $2 a gallon, not $3.64. that’s terribly, terribly shortsighted. have pointed out, they’ve said no use It’s also 948 days after Majority We could have started doing that to using coal. They’ve said no to using Leader STENY HOYER said, ‘‘Democrats many years ago, and we wouldn’t be in nuclear. Everything they’ve done is say believe that we can do more for the this situation that we’re in now be- no, while Republicans have repeatedly American people who are struggling to cause that, along with other things said yes. Yes to Americans who drive deal with high gas prices.’’ that we could do, such as drilling in to work and school. Yes to gasoline

VerDate Mar 15 2010 15:08 Nov 08, 2010 Jkt 069102 PO 00000 Frm 00137 Fmt 0688 Sfmt 0634 E:\BR08\H08MY8.005 H08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD May 8, 2008 CONGRESSIONAL RECORD—HOUSE, Vol. 154, Pt. 6 8281 prices that Americans can afford. Yes today, and my friends, it’s just going today in America, almost 4,000 more defense- to American oil. Yes to American com- to keep going up. And we need a plan less unborn children were killed by abortion on mon sense in the rules, and yes to an to make sure that we protect our econ- demand. That’s just today, Madam Speaker. American future of abundant, afford- omy and your budget. That’s more than the number of innocent lives able energy that working people can af- We know that we can’t continue to lost on September 11 in this country, only it ford to buy. pay these type of prices at the pump. happens every day. I don’t think the Democrats are We know that what we’re experiencing It has now been exactly 12,890 days since going to be able to continue to fool the with our inflation at the grocery store the tragedy called Roe v. Wade was first American people that someone else is is about 80 percent related to those handed down. Since then, the very foundation responsible for the problem that we’re high costs of energy. of this Nation has been stained by the blood now facing. They’re squarely respon- We have a solution before us with of almost 50 million of its own children. Some sible. They continue to say no, Repub- ethanol, corn-based ethanol. Again, of them, Madam Speaker, died and screamed licans continue to say yes, and I think just in a summary here, the ethanol as they did so, but because it was amniotic the American people are going to un- that is blended into the gasoline today fluid passing over the vocal cords instead of derstand that in the short-term and in is actually making it cheaper. That’s air, no one could hear them. the long-term. allowing you to save more. You’re not And all of them had at least four things in Mr. SALAZAR. Madam Speaker, may going to be spending as much on gaso- common. First, they were each just little ba- I inquire how much time either side line if it were not for the blend of eth- bies who had done nothing wrong to anyone, has? anol in it. and each one of them died a nameless and The SPEAKER pro tempore (Ms. lonely death. And each one of their mothers, b 1830 HIRONO). The gentleman from Colorado whether she realizes it or not, will never be has 30 minutes remaining. The gen- The argument that food has in- quite the same. And all the gifts that these tleman from Nebraska has 31⁄2 minutes creased because of ethanol is not accu- children might have brought to humanity are remaining. rate. In fact, these are just several of now lost forever. Yet even in the glare of such Mr. SALAZAR. Is the gentleman pre- the publications that have gone on tragedy, this generation still clings to a blind, pared to close? record, Wall Street Journal, CNN, have invincible ignorance while history repeats itself Mr. TERRY. I have closed, and I will all said that it’s a fallacy that food and our own silent genocide mercilessly anni- probably use my 31⁄2 minutes for clos- prices are going up because of ethanol. hilates the most helpless of all victims, those ing. So net, it’s helping our citizens, but yet unborn. Mr. SALAZAR. Madam Speaker, the future isn’t with corn-based eth- Madam Speaker, perhaps it’s time for those today I couldn’t agree more with many anol, it’s with cellulosic. Cellulosic is of us in this Chamber to remind ourselves of of the comments that my friend from going to supplement this ethanol. And why we are really all here. Thomas Jefferson Nebraska has made. He comes from its potential is immense. said, ‘‘The care of human life and its happi- farming country like I do. We under- So I’m proud to learn from the gen- ness and not its destruction is the chief and stand the value of the fuel that goes tleman from Colorado that the dollar only object of good government.’’ The phrase into your tractors and the value of the producers credit—I think I called it in the 14th amendment capsulizes our entire fuel that goes into your pick-up trucks blenders credit a couple of times dur- Constitution, it says, ‘‘No State shall deprive to run a farming operation. ing the statement—but that 101 pro- any person of life, liberty or property without I believe that ethanol is a temporary ducers credit, coupled with the blend- due process of law.’’ Madam Speaker, pro- fix to our energy independence in ing credit, is what’s going to lift cellu- tecting the lives of our innocent citizens and America. We need to start looking at losic ethanol for us into the market their constitutional rights is why we are all new technologies such as cellulosic- and make it a viable way that we can here. based technology. We understand that secure our independence from the The bedrock foundation of this Republic is relying on corn-based ethanol is only a OPEC producers. the clarion declaration of the self-evident truth short-term solution. Knowing that that is in the farm bill that all human beings are created equal and Everything that I believe that my conference report, I feel comfortable, endowed by their Creator with the unalienable colleague has in his motion has been then, not instructing the farm con- rights of life, liberty and the pursuit of happi- addressed in what the conference com- ference, especially since there is no ness. Every conflict and battle our Nation has mittee has brought forward, the higher more conference. ever faced can be traced to our commitment $1 per gallon cellulosic ethanol tax I ask unanimous consent to withdraw to this core, self-evident truth. credit. I think that these are provi- my motion to instruct. It has made us the beacon of hope for the sions that Mr. TERRY’s motion has. The SPEAKER pro tempore. Without entire world. Madam Speaker, it is who we I only have one concern, Madam objection, the motion is withdrawn. are. And yet today another day has passed, Speaker, is that if we were to adopt There was no objection. and we in this body have failed again to honor this motion, I believe that it could po- f that foundational commitment. We have failed tentially delay the passage of the farm our sworn oath and our God-given responsi- bill, and so I would ask my colleague, SPECIAL ORDERS bility as we broke faith with nearly 4,000 more Mr. TERRY from Nebraska, to consider The SPEAKER pro tempore. Under innocent American babies who died today withdrawing his motion. the Speaker’s announced policy of Jan- without the protection we should have given Mr. TERRY. Would the gentleman uary 18, 2007, and under a previous them. yield? order of the House, the following Mem- Madam Speaker, let me conclude in the Mr. SALAZAR. Yes. bers will be recognized for 5 minutes hope that perhaps someone new who heard Mr. TERRY. I plan to mouth those each. this Sunset Memorial tonight will finally em- words at the end of my ending com- f brace the truth that abortion really does kill lit- ments. tle babies; that it hurts mothers in ways that Mr. SALAZAR. I would thank the SUNSET MEMORIAL we can never express; and that 12,890 days gentleman, and with that, Madam The SPEAKER pro tempore. Under a spent killing nearly 50 million unborn children Speaker, I yield back the balance of previous order of the House, the gen- in America is enough; and that the America my time. tleman from Arizona (Mr. Franks) is that rejected human slavery and marched into Mr. TERRY. Madam Speaker, I recognized for 5 minutes. Europe to arrest the Nazi Holocaust is still thank the gentleman from Colorado. Mr. FRANKS of Arizona. Madam Speaker, I courageous and compassionate enough to In closing, what we’re faced with is stand once again before this House with yet find a better way for mothers and their unborn restricted supply, ever increasing de- another Sunset Memorial. babies than abortion on demand. mand on oil products, on oil and gaso- It is May 8, 2008, in the land of the free and So tonight, Madam Speaker, may we each line, $124, just shy of $124 per barrel the home of the brave, and before the sun set remind ourselves that our own days in this

VerDate Mar 15 2010 15:08 Nov 08, 2010 Jkt 069102 PO 00000 Frm 00138 Fmt 0688 Sfmt 9920 E:\BR08\H08MY8.005 H08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD 8282 CONGRESSIONAL RECORD—HOUSE, Vol. 154, Pt. 6 May 8, 2008 sunshine of life are also numbered and that all us it was necessary in order to protect Putin or his so-called successor, and we too soon each one of us will walk from these ourselves from weapons of mass de- don’t think that we should have to ac- Chambers for the very last time. struction, weapons that did not exist. commodate anybody we don’t like. The And if it should be that this Congress is al- But just because we are able to sac- fact is that sometimes you do have to lowed to convene on yet another day to come, rifice treasure and lives to protect our- do business with people you don’t like may that be the day when we finally hear the selves from a nuclear program that did if you want to carry out a reasonable, cries of innocent unborn children. May that be not exist does not mean that we can prioritized foreign policy. Our politi- the day when we find the humanity, the cour- sacrifice our national ego and our bu- cians tell us that we are at war. Well, age, and the will to embrace together our reaucratic imperatives to focus on real the last truly great wartime leader of human and our constitutional duty to protect threats that do exist. the United States was President Roo- these, the least of our tiny, little American Now, in addition to these long-stand- sevelt, and he did business with Putin’s brothers and sisters from this murderous ing institutional and psychological most venal predecessor. scourge upon our Nation called abortion on barriers to prioritization, at present we Now, this reflexive, anti-Russian at- demand. face three practical barriers that also titude grew up in large part because of It is May 8, 2008, 12,890 days since Roe prevent us from focusing on the na- the individuals who are making our versus Wade first stained the foundation of tional threats that we should really foreign policy decisions today. These this Nation with the blood of its own children, focus on, that we should give our pri- are people who spent their lives plan- this in the land of the free and the home of the ority to. The first of these is our ning and studying and writing their brave. unhealthy fixation on Iraq. This fixa- theses on how to surround and defeat f tion began with President Bush. It now the Soviet Union. Old habits die hard, afflicts us all. but yesterday’s priorities should not U.S. FOREIGN POLICY Now, we are told that morally we dictate tomorrow’s priorities. The SPEAKER pro tempore. Under must stay in Iraq because we ‘‘broke Now, Putin has given us much to be the Speaker’s announced policy of Jan- it,’’ but we are told this by the same angry about, but let us take a look at uary 18, 2007, the gentleman from Cali- people who rightfully point out that whether this new Cold War, at worst, fornia (Mr. SHERMAN) is recognized for whatever shape Iraq is in today and or very cold peace, at best, started 60 minutes as the designee of the ma- whatever shape we leave it in is still with Moscow or started in Washington. jority leader. superior to where it was under Saddam. Now, one issue that has faced us Mr. SHERMAN. Madam Speaker, I Remember, Saddam killed hundreds throughout foreign policy is the doc- thank the leadership for allocating 1 and hundreds of thousands of Iraqis trinal battle between the doctrines of hour to me of floor time. through his policies. We’re told we self-determination and territorial in- As a senior member of the Foreign must stay in Iraq because we risk a hu- tegrity. Self-determination, the right Affairs Committee and as Chair of the manitarian problem if we leave, while of a group of people within a country Subcommittee on Terrorism and Non- at the same time this Nation ignores to split up, split off, and form their proliferation, I will take the next hour actual humanitarian holocausts that own country; territorial integrity, the to focus on our foreign policy and to are going on in places like Somalia, right of a nation to continue to have see whether it is focused correctly on Chad and Congo. Those humanitarian and to possess and to control its terri- the threats that face us in the first holocausts don’t count because CNN tory. quarter of the 21st century. Then, if isn’t there. And CNN isn’t there be- In fact, the two great wars fought on time permits, I will discuss an issue— cause our troops aren’t there. So our American soil were on opposite sides of some would say a threat—that will face troops must stay in Iraq because CNN this doctrinal distinction. Our first us in the second and third quarters of is in Iraq, and CNN is in Iraq because great war on our own soil was our war the 21st century. our troops are in Iraq. So we must stay for self-determination, our war for Madam Speaker, I believe that our there because we are there. This is no independence. The second great war foreign policy has been adrift since the way to prioritize our foreign policy. was the war to protect our territorial end of the Cold War because we have We are told that if we leave Iraq, ter- integrity from those who sought south- been unable and unwilling to prioritize. rorists could meet there and plot ern independence. So we have been on Our national case of ADD forces us to against us. Imagine how big a national both sides of this doctrinal divide. We focus on whatever international objec- ego we must have to think that we face this same divide now, territorial tive flits across our consciousness. could possibly deprive our enemies of a integrity versus self-determination. We have an enormous national ego conference room. The fact is that ter- Let us examine eight places in the which causes us to believe that we can rorists can and do plot against us in general neighborhood of Russia where simultaneously and successfully pursue Somalia, in Yemen, in countless other this doctrinal conflict has come up. all our objectives, and that we can de- places, but of course these don’t count You see, we are for self-determination feat evil everywhere we choose to no- because CNN isn’t there. Remember, of Kosovo just as we were for the self- tice it. As a Nation, we punish politi- however, that 9/11 was plotted in an determination of the Slovenes and the cians and pundits who dare to deflate apartment building in Hamburg, Ger- Croats, which led to the split up of our enormous national ego. many, which makes you wonder why Yugoslavia, and we were for the self-de- Our bureaucracy opposes any effort we are staying in Iraq to make sure termination of the various republics to prioritize our objectives because that terrorists don’t have a place to that made up the Soviet Union. Four that effort conflicts with the bureau- plot against us. So our fixation with times that we were for self-determina- cratic imperative to please every one Iraq prevents us from prioritizing our tion—Kosovo, Slovenia, Croatia, and of its bureaus. Imagine having to go to foreign policy, prioritizing the need to the Soviet Union itself. the Moldova desk in the State Depart- protect Americans from nuclear at- But we are against self-determina- ment and say that Moldova’s sov- tack. But that is just one of the obsta- tion and instead for territorial integ- ereignty over its Transdniestra region cles we face. rity in at least four areas also close to cannot be a major national priority. The second obstacle we face is an Russia. We are against self-determina- The State Department is pretty much unhealthy fixation on our reflexive, un- tion of the Transdniestra region of on autopilot, with each of its bureaus thinking and implacable anti-Russian Moldova. We are against self-deter- focusing on the bureau’s function, the attitude. Now, I don’t mind being anti- mination for the northern part of bureau’s priority, with no one setting Russian. I do mind being implacably, Kosovo that would like to self-deter- overall national priorities. unthinkingly, and reflexively anti-Rus- mine itself out of Kosovo and rejoin As a Nation, we have sacrificed 4,000 sian. Now, part of this stems from our Serbia. And we are against self-deter- of our finest, and untold treasure. We great national hubris. Our foreign pol- mination for two regions of the Repub- did so in Iraq because our leaders told icy establishment doesn’t like Mr. lic of Georgia, Abkhazia and South

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In all eight of these conflicts, Now, think back to 9/11. We had the this floor about how to make our bor- Russia had a strong interest. In most of sympathy of the whole world. People ders more secure and deal with the these conflicts, we had virtually no in- were ready to follow our leadership. issue of illegal immigration. To date, terest. Who amongst our constituents People demonstrated in favor of Amer- our efforts have increased the fee talks to us about Abkhazia or South ica in places where they had not dem- charged by the so-called coyotes to Ossetia? Yet every time, in all eight in- onstrated in favor of America before or smuggle an illegal immigrant into the stances, we took a very strong and de- since. But then what did we do? We ig- United States up from $1,000 to $1,500. termined anti-Russian position. nored Kyoto. We invaded Iraq. We dis- This may have a substantial impact on We also have a conflict with Russia dained the International Court of Jus- those people who aspire to work in the over the proposal to build a missile de- tice. We built Guantanamo. We angered United States for minimum wage. But fense system in the Czech Republic and our friends and our allies with unilat- whether the cost of bringing in some- in Poland. eral approaches on the wrong set of thing the size of a person is $1,000 or $10,000 or $100,000 is not going to matter b 1845 issues. Today, who would say that the United States has the support or the much to the Iran Revolutionary Guard Russia believes that we are rushing sympathy of the world? We need to Corps. We are not going to have bor- to install these installations to create prioritize. The real threat is nuclear ders so secure that a truly sophisti- anti-Russian facts on the ground in weapons in the wrong hands. cated terrorist group or intelligence Eastern Europe. Our position is that Now, I am going to avoid using the agency will not be able to bring a bomb those missile defenses will protect Eu- term ‘‘weapons of mass destruction’’ across our borders. Keep in mind we rope from a possible Iranian nuclear- because that has been a phony and mis- have 300 million legal border crossings tipped missile. But the Europeans don’t leading term. It puts nuclear weapons every year. We have zero patrol offi- particularly want our missile defense in the same category as chemical or bi- cers, zero on the entire border between system. We have to bribe the Czechs ological weapons. Only nuclear weap- Alaska and Canada. Between Canada and the Poles to let us put them there. ons could kill millions of Americans. and the lower 48, we have roughly one The Germans and the French would Now, I don’t want this speech to be security official every 30 or 40 miles, just as soon we not build them. too depressing. We are vulnerable. We and that person is only working 8 hours Why are we taking this aggressively are institutionally and psychologically a day. So smuggling a nuclear weapon anti-Russian position? One would say unable to focus on how to reduce our will not be difficult for any adversary that the goal is to protect Europe from vulnerability. But we are still far safer sophisticated enough to get its hands Iranian nuclear weapons. But wait a than we have been at other times in on a nuclear weapon in the first place. minute. We have not even tried to bar- our history. In the 1960s we faced a far Not only is smuggling easier, it gives gain with Russia, to seek their help in greater threat. At that time we faced the perpetrator plausible deniability. If preventing Iran from getting the nu- the risk of thousands of Soviet nuclear you send an intercontinental ballistic clear weapons in the first place. Per- weapons, 10 megatons or more each. missile into the United States, we will haps in return for not building a mis- Now we face less than one five-hun- know where it came from. On the other sile defense system, we could achieve dredth the arsenal of the Soviet Union hand, if you smuggle one here, you can greater cooperation from Moscow in in terms of number and less than one always deny that you did it or leave stopping Iran’s nuclear program. But five-hundredth in terms of the strength some plausible deniability, and deter- we are unwilling to prioritize. We have of each nuclear device. So we are far rence will be undermined, and, as is ob- as a priority creating anti-Russian safer now than we were when we, as vious, interception is made irrelevant facts on ground in the Czech Republic baby boomers, as elementary school if weapons are smuggled into the and Poland; and, accordingly, we can- students, were ducking under our desks United States. not sacrifice the opportunity to build in air raid drills in order to learn how Now, I know that the great dictators missile defense systems in those coun- to protect ourselves from a massive So- really want an intercontinental bal- tries just to get Moscow’s critical help viet nuclear attack. listic missile. It’s the Viagra of ty- in preventing Iran from developing nu- Now, let us say that we could over- rants. But as a practical matter, our clear weapons. come our obstacles to a rational, enemies will determine that smuggling I could give you a number of other prioritized foreign policy. What would a nuclear weapon makes more sense for examples. Let me just focus on one, be our response to the nuclear threat them. It provides them with plausible and that is the recent commercial dis- that we face? There are four possible deniability to deter deterrence. It putes between Ukraine and Russia. In responses to a nuclear threat: Preven- makes irrelevant all of our missile de- those disputes we have told these two tion, deterrence, interception, and sur- fenses. The other problem with deter- groups of former Communists of these vival. I will deal briefly with the last rence is that Iran may not be formerly Communist countries that it three of these and then focus on the deterrable, and I will get to that in just is wrong to sell goods, in this case, nat- first, prevention. And by ‘‘prevention’’ a few minutes. ural gas, for its fair market value. We I mean preventing the wrong people So I have dealt with deterrence and have told former Communists that cap- from getting the most powerful weap- interception. Let us turn to survival, italism is wrong. Why? Because cap- ons. civil defense. This is a subject you are italism would allow Russia to get more Now, deterrence and interception are, not allowed to talk about on the House for its natural gas, and our tendency to I think, false hopes because they miss floor or anywhere else in polite society. be reflexively anti-Russian exceeds our the mark on the delivery system that The First Amendment protects many tendency to support capitalism. So we is most likely to be used by those who kinds of speech but not talking about face a second practical block to wish us harm. For 20 and 30 years, we civil defense because you have to turn prioritizing our foreign policy, and have talked on this floor about Star to Americans and say your government that is our instinctively anti-Russian Wars or national missile defense, how may not be able to protect you from attitude. we’re going to hit a bullet with a bullet nuclear attack. We may be in a cir- But we also face a third block to in outer space. Maybe someday it will cumstance where we can reduce casual- prioritization, which is our failure to work. But missile defense can be ren- ties from 200,000 down to 100,000. Our

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But if a nuclear weapon the to prioritize our need to eliminate but you put us for the first time since size of the one tested by North Korea North Korea’s nuclear weapons pro- the end of the Cold War eyeball to eye- went off at the White House, about 2 gram over the psychological need of ball with a hostile and aggressive nu- miles away, the people in this room neocons to dream of invading North clear power. You are going to end up would survive, but none of us would Korea. Instead, we need maximum car- with a Cuban missile crisis every week, know what to do or where to turn for rots for the North Korean regime if or at least several a year. Whether it is information. Should we shelter in they will verifiably and permanently IEDs smuggled from Iran into Iraq or place? Should we flee, and if so, in get rid of their entire nuclear program. whether it is Iranian gunboats chal- what direction? We need a system to We also need maximum sticks. We lenging American ships in the Persian tell Americans what to do. And we don’t have many sticks. China has the Gulf, Iran will provoke us and will test have to take Americans into our con- sticks. North Korea is utterly depend- us. We will go eyeball to eyeball with a fidence and tell them that this is a real ent on Chinese aid, and yet we have regime considerably less sane than the threat, that we are working to reduce failed to use linkage. In all our discus- regime presided over by Khrushchev. the threat, and that we are working to sions with China, we have told them Now even if we survive dozens of con- prepare for the threat. that our attitudes toward trade and frontations with a hostile nuclear Iran, Now, I know that survival is some- their currency manipulation will not there may come a day, and we pray for thing that we dealt with in the 1960s be affected by their attitudes on non- this day, when the Iranian Government when we did those bomb drills I was proliferation. We are a nation that has will see itself about to be overthrown. talking about. What might have been lost 4,000 lives to protect us from Do you think those mullahs are going absurd when we did it is now laughed Saddam’s nuclear program that did not to imitate the Soviet Communists, at when it would be useful because in exist, but we are unwilling to link our shrug their shoulders and walk off the the 1960s, had we been hit by our adver- policy on currency values to China’s world stage? Gorbachev wrote a book sary, it might well have been a thou- behavior with regard to weapons, not and went on a speaking tour. Do you sand 10-megaton weapons. No one could weapons of mass destruction, but the think that is what is going to happen? have received medical care. There real important ones, the nuclear weap- No. If these extremists in Tehran feel would be no relief into the city from ons. that they are about to be overthrown, outside the city. The living would envy Our State Department opposes link- among their options will be to use the dead. age because they find it more conven- their nuclear weapons against Israel in In contrast, Iran might develop one ient to just deal with one issue at a an effort to regain popularity on the or two 15-kiloton weapons, 1 to 2 per- time in separate bureaus, in separate streets of Tehran or to use their weap- cent the size of the weapons of the So- boxes. We need to link China’s policies ons on the United States figuring if viet Union, less than 1 percent of the toward proliferation with our policies they are going to go out, they might as number. We would be able to bring in on issues important to China. well go out with a bang. medical care from outside. We should Now I know that there was that NIE, b 1900 talk about it. We should plan for it. that National Intelligence Estimate, But I know that no politician or pundit Now let’s turn to Iran. Iran is more released late last year that was delib- is allowed to do so; so I will stop and dangerous than North Korea because it erately designed to be misread. It said instead shift to a discussion of preven- is ambitious. It is already responsible that Iran had abandoned its nuclear tion, keeping nuclear weapons out of for terrorist attacks as far away as weaponization program. But if you the worst hands. Buenos Aires, which is as far as you read that report carefully, and I am Now, I know that we should prevent can get from Tehran. It seeks to re- not talking about the classified the worst regimes and organizations make the Muslim world and then the version, which I wouldn’t talk about from obtaining nuclear weapons. How entire world. An Iran with nuclear here, but just the two-page unclassified do we do that? Maximum carrots, max- weapons is truly dangerous. version, if you read it carefully, if you imum sticks, maximum focus. We need Let’s go through all the different read the footnote, you realize that the to prioritize. We need to maximize our ways it imperils the United States. real bottom line in that report is that options. And, finally, maximum link- First, an Iran with nuclear weapons Iran is well on target to have a nuclear age, by which I mean connecting our means that you can say goodbye to the weapon by the middle of next decade. objective of deterring a nuclear Iran or nonproliferation regime which has re- You see, the key difficulty in pro- a nuclear North Korea with objectives stricted the number of nuclear states ducing a nuclear weapon is to get your that are important to other countries, since 1945. The Gulf Cooperation Coun- hands on the fissile material. And the not only North Korea and Iran them- cil or Saudi Arabia acting individually NIE says that Iran will likely have selves but Russia and China. will certainly develop nuclear weapons that fissile material by the middle of Let’s first look at North Korea. I if Iran does. Egypt will not be far be- next decade. Now the easier part of think North Korea is less important hind. And once nuclear weapons be- building a nuclear weapon is to take than Iran because North Korea is not come popular for medium-sized coun- that fissile material and do the engi- ambitious. It wishes only to survive tries and countries that do not face ex- neering work to turn it into a weapon. and to oppress its people in its own ter- istential threats to their existence, This is called ‘‘weaponization.’’ The ritory. What we need in order to deal once nuclear weapons become some- NIE, this big national intelligence re- with North Korea is the carrot of offer- thing that every country the size of port which got headlines around the ing a nonaggression pact, a treaty in Egypt has, how do you say no to Nige- world, says that for at least a while, which we would agree not to invade ria or Brazil? Iran seems to have stopped its North Korea. Not only would we lose the non- weaponization program. But what does That’s what the North Koreans have proliferation regime, but what affect that mean? The weaponization pro- asked for. If the North Koreans are would it have on Iran’s policies? Imag- gram could be completed in just a year, going to get rid of their nuclear weap- ine terrorism with impunity. Iran is al- year and a half. There is no reason for ons, you would think at a minimum ready rated by our State Department Iran to build the cart if they are still they would want a promise from the as the number one state sponsor of ter- breeding the horse. All they have to do United States that we’re never going to rorism. Imagine what happens if Iran is continue to create the fissile mate- invade. Believe it or not, the American has nuclear weapons. It puts us in a po- rial and then restart their

VerDate Mar 15 2010 15:08 Nov 08, 2010 Jkt 069102 PO 00000 Frm 00141 Fmt 0688 Sfmt 0634 E:\BR08\H08MY8.005 H08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD May 8, 2008 CONGRESSIONAL RECORD—HOUSE, Vol. 154, Pt. 6 8285 weaponization program even a year or options off the table. In fact, the more because we have been unwilling to in- two from now and they will be well on reasonable Iranian leaders will tell convenience international corporations target to have a nuclear weapon by the their colleagues that one of the reasons even in that slight way. middle of next decade. to give up the nuclear program is that We also announced rather recently So how do we know that they are de- in the end, it may be destroyed by an that we would put the Iranian Revolu- veloping the fissile material tech- American bombing raid before it bears tionary Guard Corps on the terrorist nology? Because this is the one thing fruit. So you strengthen the hand of list. And for a few hours, people said the whole world agrees on. The cen- the realists in Tehran if you leave all what does that mean? Does that mean trifuges are turning at Natanz. Iran options on the table. that if Mercedes chooses to sell trucks says so. And they brought in the IAEA But now let’s focus on those non- to the Iranian Revolutionary Guard to look at it, and the IAEA says so. lethal options. We have got to get a Corps that the United States might And Bush says so. Iran’s enemies and message through to the Iranian elites shut down Mercedes operations in the Iran’s friends say so. And we have seen and the Iranian people. And that mes- United States? Two hours later, the the pictures. Iran is creating the tech- sage is very simple. You face total eco- Treasury issued a press release saying nology to enrich uranium and create nomic and diplomatic isolation unless they had no intention of pursuing sec- that fissile material. you verifiably and permanently give up ondary sanctions. What that means is Of course, Iran says it is all about your nuclear weapons program. Well, that every European company is free to generating peaceful electricity. Wait a we have the broadcasting resources to do business with the Iranian Revolu- minute. Iran, as we know, creates an get this message through. Radio Farda tionary Guard Corps any way they awful lot of petroleum. As a byproduct is broadcasting into Iran right now. want without facing any consequences of pumping petroleum, you often get Why can’t we get this message in the United States. natural gas. Iran has no way to export through? Because I can’t lie that well So what should we be doing? The that natural gas. That natural gas is a in Farsi. The real facts are that Iran good news and the bad news is that we useless byproduct. Iran flares the nat- faces nothing close to economic or dip- have a lot of tools in our economic ural gas. Iran flares enough natural gas lomatic isolation if it continues its nu- toolbox. The good news is we have got to generate more electricity than you clear program. They face only the tools in the toolbox. The bad news is could generate at ten Bushehr-style re- tiniest sanctions, and they can do busi- we have known of this threat for a dec- actors. Well, if you have free flared ness as usual with the entire world. ade, and we have left our tools in the natural gas, that is by far the cheapest So what do we do to create the re- toolbox, except for, you know, a little way to generate electricity. But Iran ality so that we can truthfully tell the screwdriver we have used to have the isn’t interested so much in generating Iranian people and Iranian elites that slightest possible effect. electricity. They are interested in pur- they must give up their nuclear pro- b 1915 suing their nuclear program to create gram or they face economic and diplo- the fissile material which is the most matic isolation? Well, before I go for- The first thing we should do is follow essential element of creating a nuclear ward, when we talk about the Iranian the law. We should enforce the Iran weapon. So Iran is developing the economy, we must recognize that spe- Sanctions Act. Now, the Iran Sanctions fissile material needed for a bomb. cial debt of gratitude we owe to Iran’s Act was formerly known as the Iran- Now there are those who say that our mullahs whose mismanagement, cor- Libya Sanctions Act. response should be a military response. ruption and oppression have made We used the sanctions against Libya, They point out that Saddam Hussein’s Tehran vulnerable to economic pres- we forced Qaddafi to change his behav- real nuclear program was destroyed by sure even in a $130-a-barrel world. So ior, he gave up his nuclear program, we Israel in 1981. Saddam put it all in one what do we do? dropped Libya from the act, we re- place, above ground, easy to see. Syria What have we done? First on the eco- named the act, and we resumed our made a similar mistake. They put their nomic side, and then on the diplomatic policy of never applying it against whole program, or the essential ele- side. Now there was great fanfare on Iran. ments of that program, all in one October 21 of last year when we an- Since 1998, despite overwhelming evi- place, above ground. They tried to nounced big sanctions on Iran until dence, we haven’t taken the first step make it a little bit more difficult to you realized there was virtually noth- we are supposed to take under the Iran see. And if news reports are to be cred- ing there. The first part of that sanc- Sanctions Act, but what are we sup- ited, that program was destroyed late tion was to ban four Iranian banks. We posed to do? The purpose of the act is last year by an Israeli bombing effort. had banned some of them earlier, to deter companies from investing $20 The Iranians are not nearly so in- bringing to a total of four the number million or more in the Iran oil sector. competent. Their program is dispersed. of Iranian banks that were not allowed The first step in that is for us to take It is underground. And it is hidden to execute transactions with the New note of which companies have invested from our intelligence assets. A mili- York branch of the United States Fed- $20 million in the Iran oil sector, and tary strike would not destroy their eral Reserve. That means large dollar that triggers the act. At that point, the whole program. It would set them back transactions, including oil sales, will President is supposed to impose sanc- a few years. It would also cause a num- either have to be executed through tions on that firm or at least name ber of problems. But even if you believe other Iranian banks or through non- them and shame them and then waive that a military strike is a good idea, Iranian banks or priced in euros rather the sanctions. Minimum compliance we ought to first exhaust our nonlethal than dollars. The most this could pos- with the law requires the President to alternatives if for nothing else than sibly do is to cut maybe one-tenth of 1 at least name the companies that we out of a decent respect for the opinion percent of Iran’s oil revenue at very know are investing $20 million or more of the world. worst. And that is if many of the Euro- in the Iran oil sector. I will talk about those nonlethal al- pean banks really hit them with huge What has actually happened? The ternatives in a second. But I want to fees. State Department, the Administration, respond to those who take the other The fact is that there are plenty of refuses to open its copy of the Wall approach and say, well, shouldn’t we banking channels. Iran can easily shift, Street Journal on any day in which pass a law here in Congress to prohibit and has shifted, to selling its oil for there is an announcement of an addi- any bombing of Iran’s nuclear facili- dollars. Instead it sells for Euros. And tional significant investment in the ties? That is, I think, a mistake. I call there are many ways that they can do Iran oil sector. it Ambien for Ahmadinejad. It would dollar transactions if they want to. We I had to turn to CRS, the Congres- help him sleep better. have not taken the step of even ban- sional Research Service, to give me a There is no reason for us to tell the ning all Iranian banks from doing busi- chart of all of the large investments Iranians that we have taken any of our ness with the Federal Reserve Board being made in the Iran oil sector. We

VerDate Mar 15 2010 15:08 Nov 08, 2010 Jkt 069102 PO 00000 Frm 00142 Fmt 0688 Sfmt 0634 E:\BR08\H08MY8.005 H08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD 8286 CONGRESSIONAL RECORD—HOUSE, Vol. 154, Pt. 6 May 8, 2008 have got not just one chart, we have what it is for them to cut the ribbon on turn, and you can’t think of national got another chart. But if you ask the a water project and say we have given interest when you do so.’’ State Department to name even one this to you. That’s enough to help Now, get this, because my colleagues company that is investing, they will them stay in power just a little bit. have seen how the Administration has say we refuse to speak. Why? Because But imagine how much more meaning- been opposed to frivolous lawsuits and they don’t even want to acknowledge ful it is when they say the whole world, any lawsuit they claim is frivolous, that the investment is being made. the World Bank, has sent us this they have been against lawsuits on ev- That would trigger the act. money. This is proof that the United erything except one thing, they are in This is like hiring a police officer States can do nothing to hurt us. This favor of frivolous lawsuits against who disagrees with the law, a narcotics is proof that the whole world is on our State governments who choose to di- officer who just walks around and ev- side about developing nuclear weapons. vest, against private pension plans that erybody is using whatever drugs, and The World Bank loans to Iran are choose to divest. Why? Because their this officer does nothing—what good is harmful not just from an economic per- hatred of trial lawyers is exceeded by to pass the law if the Executive Branch spective, they are harmful to us from a their hatred of investors who would try refuses to apply it? political perspective as well. We should to influence the very companies in Now, we have a bill that has passed change our laws dealing with Federal which they have made an investment. this House, it’s stymied by Republicans procurement, State procurement and It is absolutely shameful for us to in the Senate, it is opposed by the Ad- Federal corporate assistance to achieve make it more difficult for good Ameri- ministration, it’s called the Iran one thing. We should turn to any cor- cans to push the companies that they Counter-Proliferation Act. What does poration seeking a big contract with partially own into doing the right this legislation do? The legislation the Federal Government or seeking the thing. We should go further. strengthens the Iran Sanctions Act, it assistance of any of our programs de- Later this month, I will introduce imposes a total embargo on imports to signed to help business, whether it be legislation to change our tax code so the United States of Iran’s goods. the Export-Import Bank or a whole that those who are divesting from com- Believe it or not, we import from host of other programs. panies doing business in those bad Iran. We don’t import oil, we only im- We should ask the other question, areas, as I have identified, or those port the stuff they don’t need and they does your corporation or any of its af- areas we would like to discourage with would have trouble selling anywhere filiates invest in the Iran oil sector, regard to Iran, we will say, if you sell else, caviar and carpets, et cetera. loan money to the Iranian government, your stock in such a company, and re- The bill we would pass through this sell munitions to the Iranian govern- invest the proceeds in a company that House would at least turn to Iran and ment? Imagine the effect this will have is clean, then you should get a carry- say well you can’t sell those goods here if we make it clear that if you are a over basis. We are not going to use that in the United States, which would have Nebraska corporation owned by an as a taxable event, because divestiture a significant impact on some of the Italian corporation, and the Italian should be encouraged, not taxed. We most powerful families and clans in corporation is investing in the oil sec- need to turn to all the corporations in Iran, particularly those that play a de- tor of Iran, that means we are not the world and say do not invest in the cisive role in their government. going to give you the contract, we will Iran oil sector, do not lend money to The Iran Counter-Proliferation Act give it to somebody else. that government, do not sell the muni- would also end the obscene practice of A number of States have tried to do tions, otherwise, we will encourage our U.S. oil companies doing business with this, and they have been threatened by companies, we will encourage our in- Iran through their foreign subsidiaries. the Federal Government. We have vestors, we will encourage our pension So far that bill remains bottled up, in passed through this House, and it has plans, we will encourage our individual large part because the Administration made it through the Foreign Relations investors to stop investing in your opposes it. The same Administration Committee in the Senate, a bill dealing company. We will not give aid to any of that refuses to enforce the existing with OPIC, the most unfortunately ti- your subsidiaries, and we will not law. tled Federal agency, the Overseas Pri- make them eligible for Federal con- What about the World Bank? The vate Investment Corporation, and said tracts. This will provide real pressure World Bank has lent some $1.36 billion that if you want the assistance of this on the Iranian government. to Iran since Iran began its nuclear agency, you have to certify that nei- But that’s just the economic toolbox. weapons program. Some $700 million of ther your corporation nor any of its af- We also have the diplomatic toolbox as that hasn’t been disbursed yet, but the filiates are engaging in those wrongful well. It is even more powerful, it is United States has done nothing to pre- transactions with the Iranian govern- even less used. We have never offered vent those loans from being authorized ment. Clearly, we should not be giving Russia anything in return for real co- or the funds disbursed, except one assistance to those who are aiding operation on the issue of Iran’s nuclear thing. Iran’s nuclear program or aiding the program. We have not provided linkage The Administration cast a token Iranian government in one of the key between issues Russia cares about and vote at the World Bank knowing they pressure point areas, munitions, in- what we care about, which ought to be would be outvoted, and they only did vestment in the oil sector, loans to the preventing Iran from developing nu- that because it was required by law. At government. clear weapons. least they followed the law. They are Now we have the issue of divestiture. We have made it clear to Russia that willing to follow the law when it’s ut- We need to encourage private investors what we do with regard to Chechnya, terly inconsequential. and government pension plans and pri- Abkhazia, Moldova, Estonia or any- To date, the Secretary of the Treas- vate pension plans to sell their stock in thing else is not linked to what Russia ury has refused to even call any of his corporations that are engaging in those does with regard to Iran. counterparts in European capitals to transactions with the Iranian govern- Likewise, we have made it clear to urge them to withdraw their support ment, investments in the oil sector, China that what we do with regard to for these World Bank loans. loans to the government, sale of muni- Taiwan or currency manipulation or Now, why are these World Bank loans tions. trade will have nothing to do with so important? Because we know what A number of States, especially the what China does in the U.N. or else- it takes to stay in power. One of the State of Florida, my own State of Cali- where with regard to Iran’s nuclear things it takes is delivering projects to fornia, have decided to divest from program. people, bringing home the bacon, if you such companies. But when they do so, If we could get Russia and China to will. Now, I know it’s not kosher, it’s they face frivolous lawsuits, lawsuits support us at the U.N., then instead of not Halal, but it is what Iranian politi- from people saying, ‘‘oh, you have to stupid little sanctions designed to fool cians around the world do. Imagine invest for the maximum possible re- people around the world, we could get

VerDate Mar 15 2010 15:08 Nov 08, 2010 Jkt 069102 PO 00000 Frm 00143 Fmt 0688 Sfmt 0634 E:\BR08\H08MY8.005 H08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD May 8, 2008 CONGRESSIONAL RECORD—HOUSE, Vol. 154, Pt. 6 8287 real U.N. sanctions. What would that Then I turned to the U.S. News part sailable. Anybody who looked at the mean? Imagine a U.N. ban on sending of the Wall Street Journal and what do evidence would have to conclude that refined oil products into Iran. Now, you know, above the fold there were there was a reasonable, indeed prob- Iran has plenty of petroleum, but they two more headlines, ‘‘Bush Prods Law- ably a high probability that we would don’t have the refinery capacity. They makers on Economy and Energy be here today with oil at over $100 a import nearly half of the gasoline they Prices,’’ and ‘‘GOP Senators Urge Halt barrel. burn. to Oil Reserve.’’ This all started in 1956 on March 8 If the United Nations would prohibit Then I noted the three papers that when an oil geologist from the Shell every country in the world from send- are kind of inside the Beltway papers: Oil Company gave a speech that I think ing them that refined petroleum, you Roll Call, ‘‘Alexander Eyes Energy may shortly be recognized as the most would have an immediate impact on Agenda’’; The Hill, ‘‘Politics At the important speech given in the last cen- the streets of Tehran. You would be Pump’’; and Politico had ‘‘Gas Prices tury. He gave that speech in San Anto- able then to turn to the Iranian people, Fuel Effort to Jam the GOP.’’ nio, Texas, to an audience of people in- to turn to the Iranian elites and say So every one of these seven papers terested in oil. What he told them was that you, indeed, face economic and that were on my doorstep that morning at that time absolutely audacious and diplomatic isolation unless you aban- had headlines talking about energy. incredible. He told them in just 14 don your nuclear weapons program. Now I noted just a few days before that years the United States is going to We need to prioritize. We need to link there was a New York Times op-ed reach its maximum oil production and what is important to us to what is im- piece by Thomas Friedman. This is no matter what you do, after that the portant to others. We need to use all what he says about energy. Here is production of oil will decrease year by the tools in our toolbox, and we need to what is scary. Our problem is so much year. use them immediately. Otherwise, we worse than you think. We have no en- At that time the United States was will not achieve the level of security ergy strategy. If you are going to use the largest producer of oil in the world, from nuclear attack that the American tax policy to shape energy strategy, the largest consumer of oil in the people deserve. then you want to raise taxes on the world, and I think the largest exporter I am not saying that we can make things that you want to discourage— of oil in the world. So this was abso- America invulnerable, but I am saying gasoline consumption and gas-guzzling lutely audacious to suggest that the that it is our duty here in the Federal cars—and you want to lower taxes on king of oil in just 14 short years would Government and as foreign policy- the things you want to encourage—new reach its maximum ability to produce makers to do everything we can to renewable energy technologies. We are oil. achieve that objective. doing just the opposite, he says. He was a pariah for a number of I have concluded. I did mention that The gas holiday proposal is a perfect years, and then in 1970, when right on I would perhaps talk about threats example of what energy expert Peter schedule as this chart shows, when that face us in the second and third Schwartz of Global Business Network right on schedule the United States quarters of the 21st century. I will describes as the true American energy reached its maximum oil production, leave that to another speech. I yield policy today, and I quote, ‘‘Maximize he became a legend in his own time. He back. demand, minimize supply, and buy the made his prediction in 1956. You see f rest from the people who hate us how much oil we were producing then. In 1970 we were producing a lot more b 1930 most.’’ This is not an energy policy. This is oil. And right on schedule, just as he PEAK OIL money laundering, he says. We borrow predicted, the United States after that The SPEAKER pro tempore (Mr. money from China and ship it to Saudi produced less and less oil each year, in MAHONEY of Florida). Under the Speak- Arabia and take a little cut for our- spite of several things, Mr. Speaker. In er’s announced policy of January 18, selves as it goes through our gas tanks. spite of finding a lot of oil in Alaska. 2007, the gentleman from Maryland No, no, no, we will just get the money And notice just a little blip down the (Mr. BARTLETT) is recognized for 60 by taxing Big Oil. Even if you could do slide of what is called Hubbert’s peak minutes as the designee of the minor- that, what a terrible way to spend pre- as a result of this enormous find in ity leader. cious tax dollars, he says. Alaska. I have been to Prudhoe Bay, a Mr. BARTLETT of Maryland. Mr. For almost a year now, Congress has 4-foot pipeline through which for a Speaker, several days ago I came into been bickering over whether and how number of years a full 25 percent of all the office early and I found at my door to renew the investment tax credit to our domestic production flowed. And the usual package of newspapers and I stimulate investment in solar energy then a big find some years later in the opened them up and was placing them and the production of tax credit to en- Gulf of Mexico. I remember the hype out on the table, and I noticed the courage investment in wind energy. over that find. You see the yellow headlines. And this is every paper that And a little later I will go over this bill there, just a blip in the slide down the was at my door that morning. There that has already passed the Senate, other side of Hubbert’s peak. were four newspapers and there were and we have introduced it in the House So not only did we find a lot of oil three inside-the-Beltway newspapers now. that M. King Hubbert had not included intended primarily for those interested The Democrats wanted the wind and in his prediction, his prediction in- in the Congress. I want to go through solar credits to be paid for by taking cluded only the lower 48 States, in the headlines in every one of those pa- away tax credits from the oil industry. spite of this large find of oil in Alaska pers. President Bush said he would veto and the large find of oil in the Gulf of Here is the Baltimore Sun, and they that. Neither side would back down. Mexico, and in spite of increasing had two headlines above the fold both Stalemate, he says. amounts of natural gas liquids, we related to energy, ‘‘Demand Eats Sup- I first came to this floor to talk today produce about half of the oil that ply,’’ and ‘‘Energy Bill Aids Payouts on about this subject more than 3 years we did in 1970. Rise.’’ ago. It was, I believe, the 14th day of Another thing that we have done, we Then I went to the Washington March in 2005. I noted then that we have drilled more oil wells than all of Times and there was a headline, ‘‘Bush have known, we had known at that the rest of the world put together. In Lays Gas Blame on Congress.’’ time for 25 years that we would be fac- spite of doing that, in spite of ever-bet- And then I went to the Wall Street ing this crisis. Now it is 28 years. We ter techniques for finding oil, computer Journal and the Wall Street Journal have known for 28 years that we would modeling and 3–D seismic, in spite of headline was ‘‘Grain Companies’ Prof- be facing this crisis. I will present the ever-better techniques for getting the its Soar as Global Food Crisis evidence for that in just a moment, and oil, enhanced oil recovery, nothing we Mounts.’’ I think the evidence is absolutely unas- have done has proved M. King Hubbert

VerDate Mar 15 2010 15:08 Nov 08, 2010 Jkt 069102 PO 00000 Frm 00144 Fmt 0688 Sfmt 0634 E:\BR08\H08MY8.005 H08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD 8288 CONGRESSIONAL RECORD—HOUSE, Vol. 154, Pt. 6 May 8, 2008 a liar. He said we would peak in oil pro- production and an increasing demand, efficient now than we were then. Look duction in 1970, and we did. And we the supply/demand mechanism which at the slope of this curve as compared have been sliding down the other side controls the pricing of almost every- to the slope of this curve. And we’re of Hubbert’s peak ever since. thing in our world, caused an increase getting even more and more efficient. In 1979 he predicted using the same in the price of oil. Now, it would be This is an exponential rise. And it analytical techniques which aren’t all well off the top of our chart here. We’re would be off the top of the chart. that hard to understand. He noted that now at $123, $124 a barrel. That’s well As a matter of fact, there was a stun- in an individual oil field, that the pro- off the top of the chart here. As far as ning statistic during the Carter years. duction of the field increased and in- I know, these lines are extending out Every decade the world used as much creased and increased until it reached a flat. There is no increase in oil produc- oil as it had used in all of previous his- maximum which was when about half tion. tory. Now, that’s stunning, because the oil was exhausted. After that, the The next chart, this chart shows the what that says is that when you used last half which reasonably would be discoveries of oil through the years, half of it, only 10 years will remain. more difficult to get, was more dif- and it shows the use of oil through the We’re very much better off. ficult to get and production was slow- years. Now, if you had only one chart By the way, oil’s not going to run out er. And so he rationalized that if he that you could look at, this chart, I in 10 years or 20 or 30. We have another could add up all of the little oil fields think, conveys more information than 150 years of oil, gas and coal, but at in the United States and make a good any other. And even without M. King ever decreasing amounts, ever more prediction as to how many more we Hubbert’s predictions, I think that you difficult to find, ever more expensive. would find, he could have one big bell would conclude that we’re probably When we talk about peak oil and the curve which is basically the shape of going to max out in oil production energy crisis, that does not mean we’re that curve, and he could then predict about now. Because look what we have running out of oil. What that means is when the United States would reach its here. we’re running out of our ability to maximum oil production. He was right We have discoveries back through the produce oil as fast as we would like to on target. 1940s and the 1950s, and boy did we dis- use it. Using that same technique, he pre- cover it in the 1960s and the 1970s, and Well, what will the future look like? dicted that the world would be peaking then another surge around the 1980s. Now, I said if you had only this chart in oil production about now. Now I say But down, down, down since then. And to look at you could make some really that we have known this for 28 years. I that’s in spite of ever better tech- educated guesses about what the future say that because by 1980 it was very ob- nologies for discovering oil, ever more is going to look like, because you can- vious that M. King Hubbert was right interest in discovering oil. It’s been not pump what you have not found. about the United States. We were al- down, down, down. And unless you think that there’s ready well over the peak and sliding Now, obviously, if you add up all of going to be some startling new discov- down the other side of what is called these bars, you will know the total eries in the future, it’s been down, Hubbert’s peak. What did we do? We amount of oil that we have discovered. down, down, for 30 years. Unless you have done as a world, as a country, ab- That is frequently done by simply think there’s going to be some star- solutely nothing to prepare for the in- drawing a smooth curve over those tling new discoveries in the future, evitability that M. King Hubbert would bars. That tells you that the area these are the reserves that we have to probably be right about the world be- under the curve represents the total fill in the volume here about what this cause he was right about the United volume. I say that because there’s an- chart suggests we might find. States. other curve here which is very impor- Now, it won’t be smooth like that. It Now as the next chart shows, the two tant, and that is the consumption will be up and down, but it might be entities which track oil production and curve. reasonably that kind of a slope. consumption, and it is essentially the Notice that early on in the 1960s, boy, So I think that even without the pre- same thing, very little oil is stored in in the 1970s, we were finding enor- dictions of M. King Hubbert, just look- the world compared to the amount that mously more oil than we were using. ing at this oil chart, it would be very we use, that is the EIA, the Energy In- So every year we had bigger and bigger easy to conclude that we probably, formation Administration, a part of reserves behind us that we could rely very soon, if not now, would have our Department of Defense, and the on. And then about 1980, when the dis- reached the maximum production of IEA, the International Energy Associa- covery of oil was down, and we were oil. tion, both of those track very well the using more and more oil, ever since The next chart looks at some of the production of oil. And you can see they about 1980, we have been using more oil geopolitical consequences of this. This have the production of oil about flat than we found. Well, we could do that is the world according to oil. This is for the last 3 years. because we had extra back here that we what the geography of the world would Now when I first came here, and I hadn’t used. So we simply could borrow look like if the size of the country was think that was 43 times ago, I think from this and pump it here and fill that related to how much oil it had. Some this is the 44th time I have been to the volume with it. really interesting things here. floor, when I was here in 2005, oil was I want to point out something about Saudi Arabia dominates the land- about $50 a barrel, a little over $50 a this curve which is really very inter- scape. They should. They have 22 per- barrel. Using the predictions of M. esting. You notice how steep the curve cent of all the known reserves of oil in King Hubbert, I with some confidence is here. This is up through the Carter all the world. And notice, their near have been saying now for these 43 years. Now, had we continued on that neighbors, Iraq, Kuwait, Iran, second, times, 44 times including tonight, that trajectory, we would now be well off third and fourth. United Arab Emir- we were going to get here, that the the top of this chart. ates. You almost have to have a magni- world was going to reach maximum oil The oil price spike hikes of the 1970s, fying glass to find them on the map, production. and the recession that occurred then, and there they are. Look how huge notice the little dip there, were really they are in terms of the amount of oil b 1945 blessings in disguise. There’s an old they have. And then Northern Africa. And we ought to have been preparing saying that it’s an ill wind that blows Here we are, the United States. The for this. And since we hadn’t been pre- no good. yellow means that we’re a big user of paring in the past, we ought to start I lived through all of those gas lines, oil. Our small size means we don’t have preparing for this with some realistic even, odd, the end of your license plate, much. And notice the people from measures. the day you could fill up your tank. whom we get most of our oil. Canada is Notice what happened to the price of But look what happened as a result our Number 1 supplier. They have oil. Of course, when you have a static of that wake up call. Boy, are we more much less oil than we. But they don’t

VerDate Mar 15 2010 15:08 Nov 08, 2010 Jkt 069102 PO 00000 Frm 00145 Fmt 0688 Sfmt 0634 E:\BR08\H08MY8.005 H08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD May 8, 2008 CONGRESSIONAL RECORD—HOUSE, Vol. 154, Pt. 6 8289 have very many people so they can ship it won’t flow. And if they do is just blue water navy. They launched many oil to us. right they can get the oil to flow in times, I don’t know the exact number, Mexico, until about a month ago, was large amounts, and they may get for maybe 10, submarines last year. We our Number 2 supplier. But their larg- quite a number of years, 1.2 million launched one. est oil field, which is the second largest barrels a day. But that’s kind of iffy. Now, their submarines aren’t ours oil field in the world, Cantoral, is now But even if they get that and get it yet, but I would note that they are in steep decline, about 8, 10 percent a on-line, it will barely maintain their graduating six times as many engi- year. Now our Number 2 supplier is present oil production. It will not in- neers as we graduate, and about half of Saudi Arabia. crease their oil production. our engineers are Chinese students. Mexico. But notice that Mexico and The next chart speaks again to this I was stunned the other day when I Canada together have little more oil geopolitical situation. This is the chart learned that in our patent office more than we have. And we have only 2 per- which shows who is buying oil where in than 60 percent of the applications for cent of the known reserves in the the world. And you see these symbols a new patent come from Asia. world. Maybe they have 3 percent. for Russia. Here they tried to buy They are very aggressively building a Maybe all three of us together here UniCal in our country. They have blue water navy. Might the day come have 4, 5, 6 percent of the oil in the bought a lot of the production from that they would say well, gee, I’m world. That’s all. Canada, South America, the Middle sorry, guys, but we have 1.3 billion peo- Even more alarming, notice the size East, Northern Africa. You see their ple, the oil is ours and we can’t share of China and India. Here they are. 1.3 symbol all over the map. it. billion people and 1.1 billion people, Why are they buying oil? Today it Today there’s no alternative, the way more than a third of the world’s popu- doesn’t make any difference who owns the marketplace works but that you’re lation, and they have less oil than the the oil. The person who comes, the going to share your oil. United States has. country, the company that comes with The next chart, and I’ve already men- When you go to China, and I did with the dollars buys the oil. It doesn’t tioned some of these numbers. We have 8 other Members of Congress about 16 make a bit of difference. only 2 percent of the world’s reserves of months ago, and they begin their dis- We own only 2 percent of the oil in oil. By the way, these numbers encour- cussion of energy by talking about the world, and we use 25 percent of the aged 30 of our prominent leaders, Jim post-oil. So China knows that they oil in the world because we come with Woolsey and McFarland and Boyden have to transition. our dollars and we buy the oil from Gray and 27 others, several retired 4– The next chart is kind of a bar chart those who have it for sale. Star admirals and generals to write a which shows the same thing, pretty So why would China be buying oil? letter to the President saying, Mr. much, that we saw in that chart. If you You can’t get inside their head, but President, the fact that we have only 2 take the 10 largest owners of oil in the you can make some prognostications percent of the world’s reserves of oil, world, 98 percent of all that oil belongs from what you see. You go to China, by and we use 25 percent of the world’s oil to countries rather than companies. the way, and they talk about post-oil. and import almost two-thirds of what Saudi Aramco, National Iranian, Iraqi There will be a post-oil world. It’s not we use is really a totally unacceptable National Oil, Kuwait Petroleum Com- forever. It is finite. It will run out. And national security risk. pany and so forth. Only 2 percent by China is talking about post-oil. b 2000 Lukoil, that’s a big Russian oil com- But while we still have some oil, they pany. have a policy, a 5-point plan, and ev- We’ve got to do something about Now, if you look at the 10 producers erybody knows it over there, all of that. That little 2 percent we have, by of oil, 78 percent of the first 10 pro- their leaders know it, not just the peo- the way, from that we produce 8 per- ducers of oil, all that oil comes from ple in energy and oil and coal know it. cent of the world’s oil. So we’re good at countries, not companies, again, these Everybody over there talked to us pumping oil. nationally owned oil companies. And about the 5-point plan. As I mentioned earlier, we have only 22 percent comes from the big Number 1 is conservation. That’s drilled more oil wells than all the rest three. where whatever country, and this is of the world put together. So it is not There’s obviously a lot of angst over where it’s got to begin. We have now surprising that we’re pumping down the high price of oil, and people are run out of time. We have run out of ex- our oil reserves four times faster than looking around for who to blame. And cess energy. We can buy some time and the rest of the world. We have a bit less there are a lot of people who blame the free up some energy if we have an ag- than 5 percent than the world’s popu- big oil companies. They’re gouging us. gressive program in conservation. lation, and we use 25 percent of the There are a lot of people who blame Number 2 and Number 3 were alter- worlds’ oil. the OPEC countries, and many of them natives, and as many of those as you I’m going to next look at some of the are here; because they say they’re can from your own country. things that I personally have been holding back on oil to drive the prices Number 4 may surprise you. Be kind doing and some of the things that Con- up. Probably neither one of those to the environment. They know they’re gress has been doing, and then I am things are true. There is pretty good awful polluters, but they have 900 mil- going to recognize my very good friend, evidence that OPEC is pumping oil lion people in rural areas that, through ZACH WAMP from Tennessee, who has about as fast as it can pump oil. the miracle of communications, know come with us to share some of this Russia, not a part of OPEC, but a big the benefits of industrialization. And I time with us. producer, noted several weeks ago that think they see their empire unraveling Mr. WAMP. I thank the gentleman they had reached their maximum oil the way the Soviet empire unraveled if for yielding, and I want to thank Mr. production. they cannot meet the demands of these BARTLETT for this lesson. I should say Saudi Arabia, just last week admit- people. Dr. BARTLETT. It is rare that a person ted to maximizing out on oil produc- So why are they buying all the oil? has been in Congress for as long as you tion. They’re trying to bring a new At the same time they’re buying this, have. I first met you, Congressman field on-line, the Kuras field. It’s a very oh by the way, they’re not just buying BARTLETT, when you and I were run- technical field. It may get 1.2 million oil; they’re buying good will. Would ning for Congress in the 1992 cycle. I barrels a day. That’s a lot. But they you like a soccer stadium? Is it hos- did not prevail, and you did, so you got may get nothing. They’ve spent bil- pitals you need, roads? So in addition a 2-year jump on me here. lions of dollars drilling wells. They’re to buying the oil they’re buying good- And I’ve been here on the floor in the going to have to flood the field with will. past when we talked about this chal- seawater under pressure because that At the same time that they’re doing lenge, and my only regret tonight is oil is so tightly held in the rocks that this, they are aggressively building a that all of the Members of the House

VerDate Mar 15 2010 15:08 Nov 08, 2010 Jkt 069102 PO 00000 Frm 00146 Fmt 0688 Sfmt 0634 E:\BR08\H08MY8.005 H08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD 8290 CONGRESSIONAL RECORD—HOUSE, Vol. 154, Pt. 6 May 8, 2008 were not here to hear again your com- But I want to zero in, because you for the marketplace. That may be 15 to prehensive explanation of some of have rightly talked about these issues 25 years from now. these problems and the solutions and of conservation, efficiency, new tech- And there is a silver lining in the the realities, and that everyone in our nologies, renewables; and I want to cloud. You talked, Dr. BARTLETT, about country could not understand as well highlight a few because I said earlier the silver lining during the Carter as you understand the realities of what tonight on the floor, I’m a conserv- years, that it caused us to blunt the we are seeing today. ative. I think conservatives should pro- sharp increase in consumption. The sil- I want to begin elementally by say- mote conservation. That’s a logical ver lining today with these price points ing that the nexus between energy and thing to say and to do. And that should is that technologies are rapidly being national security and our environment be first and foremost, and it is not deployed because the marketplace is the most important policy challenge wimpish, as I said earlier, for us to pro- knows there’s opportunity there. of our time. And all of the conflicts of mote conservation. It’s smart. It re- And we were with the President of the world have some relation to those duces demand and lowers price. That’s the United States yesterday discussing three challenges. There’s obviously re- what we have to see. And it should be this, and he talked about that specifi- ligious undertones and whatnot, but led by the top, and it should be a grass- cally that you’re seeing the most rapid those have been around forever. These roots call for us to be as efficient as movement towards alternative trans- challenges now all kind of collide. possible in all aspects of our life, portation systems and technologies That’s this nexus that I am talking frankly. that we’ve seen in the modern era be- about. We have sat on the couch for a gen- cause people cannot afford gasoline On the national security front, you eration knowing these problems ex- today, and therefore, alternatives will mentioned Thomas Friedman’s col- isted, and we haven’t acted, and there’s hit the marketplace faster. And surely umn, and there is one quote in it that plenty of blame to go around. I don’t we could have done better in the past, I wanted to point out where he says, want to come to the floor and blame but we’ve got to find these solutions so ‘‘ ‘There are 23 countries in the world everybody. There’s a lot of that that we’re going to have some kind of elec- that derive at least 60 percent of their goes on. Frankly, that’s one reason tricity. Now that brings all of the energy exports from oil and gas and not a sin- people tune out Washington so much is problems together when you’re talking gle one is a real democracy. Russia, there’s too much of a blame game about electric cars because two-thirds Venezuela, Iran, and Nigeria are the going on here. American people want of the oil consumption’s in the trans- poster children’ for this trend where these problems solved, but I really be- portation sector, and we’ve got some leaders grab the oil tap to ensconce lieve we should look at these incredible capacity problems in the electricity themselves in power.’’ technologies that we have. sector, and we are not bringing on nu- That makes this peak oil challenge a So let’s talk a little bit about trans- clear plants at anywhere near the rate critical national security problem for portation because there’s a Farm Bill of European countries because we’re the United States of America. coming. There’s a lot of talk about al- still caught in this Three Mile Island When I talk about the environment, ternative fuels. one of the most important issues now I believe in the south that cellulosic time warp of safety and security. And as we face the next Congress and the ethanol will be part of the solution, but the waste stream is such here that you can’t permit a place to bury it, like next administration after this fall’s it’s a bridge, in my view. Even at best, Yucca Mountain, in a timely manner. election will be the American response it’s a bridge to the future. It’s not the So we need to look at the proposition to this global warming challenge. And permanent solution. The fuel mix could that they do in France of recycling the I would argue this: We can’t deny the certainly be improved, and cellulosic spent fuel back into energy. Reprocess- problem. We can’t bury our head in the ethanol doesn’t destroy our agriculture ing spent fuel. It’s a closed-fuel cycle. sand from the problem. We should not and our food capabilities and pricing We can do that. We should look at ignore it, but we better be very careful like corn-based ethanol does, so that that. And we should bring nuclear up. that we don’t over-regulate our free so- obviously has been a net loser for the But I want to throw a new tech- ciety as we respond to it. environment; it has been a net loser for nology into the electricity production The world needs to see us proactively agriculture; it has been a net loser eco- which could very well help us on trans- addressing this problem, but I would nomically in some ways. portation as we move towards battery- say the best way we can do it is deploy But cellulosic ethanol, say powered cars if they’re cost effective. the technologies, use the innovation, switchgrass that you don’t eat, it could See, I believe the market will deter- parlay and capitalize on our free-enter- actually be productive in creating an mine which ones come first and which prise system to solve these problems alternative fuel. But that’s a bridge to one consumers will buy and which ones for the world, much in the same way the future because if you ask the auto- hit the price points quickest, and that the information revolution in the motive industry leaders, they will tell that’s where people, I think, will buy. last 30 years in this country was led by you that in a couple of years, the price So I think if electric cars or the plug- the United States of America and the points on plug-in hybrids will be such in hybrid is the first one there at likes of Microsoft; and in doing so, a that Toyota and General Motors in 2010 $25,000, $35,000 for a new car, that’s robust U.S. economy erupted that led will have a cost-competitive plug-in where consumers will go. But where is to a balanced budget in this modern hybrid. the electricity going to come from if era that was unprecedented where reve- So the vehicles of the future are we do this? We don’t have the capacity nues actually surpassed expenses. going to run probably for a while on right now to meet today’s demand So we see energy and the environ- some form of electricity, some kind of based on commerce and industry, let ment and national security all come a battery, an ion lithium battery. The alone new transportation systems that together. technologies are developing very need electricity. Now, earlier tonight I talked about quickly. Imagine plugging your car in And we are the most abundant source an all-of-the-above approach that I pro- in your garage overnight and having it of coal. We’re the Saudi Arabia of coal mote that we should promote because charged where you can take it 400 for the world. But we have got to, if the capacity needs, both from transpor- miles before recharging it and getting we’re going to take this leadership po- tation and fuels and electricity are so an equivalent horsepower of 260 to 280 sition on climate change and not bury great, even today but even more so in horsepower. People would be excited our head in the sand, we’ve got to have the future, the capacity needs are so about that if they could afford it. clean coal technology, we’ve got to great with this demand that we have to Right now the price point on a hydro- have carbon capture. We’ve got to in- not, in my view, leave anything off the gen fuel cell car is not cost effective. vest there. We’ve got to still use coal, table but have an all-of-the-above solu- It’s a couple hundred thousand dollars but it’s also a finite resource, which tion. at best, which obviously is not ready you have identified.

VerDate Mar 15 2010 15:08 Nov 08, 2010 Jkt 069102 PO 00000 Frm 00147 Fmt 0688 Sfmt 0634 E:\BR08\H08MY8.005 H08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD May 8, 2008 CONGRESSIONAL RECORD—HOUSE, Vol. 154, Pt. 6 8291 Let me tell you about a new tech- The problem with them having an in- sion of the energy efficient commercial nology that’s really got potential. It dustrial revolution in 2008 is they’re al- buildings deduction; modification and comes out of the Silicon Valley and the most one-fourth of the world’s popu- extension of the energy efficient appli- Tennessee Valley, interestingly lation, and if they have an industrial ance credit. enough, where I live. We’re in a part- revolution without environmental re- So it’s a broad-based bill. It has nership with them. We have built a sta- sponsibility at the same time the rest passed the Senate by 88–8. It has 43 co- tionary solid oxide fuel cell system. It of the world is being called on to re- sponsors in the Senate. We have 35 looks like the HVAC unit in your duce carbon and their carbon footprint, original cosponsors in the House and home. We now have a 100 kilowatt sys- it’s a regulatory burden to the indus- two more have been added to that tem, meaning it generates 100 kilo- trialized world and it lets these devel- today. watts of electricity, and it runs off of oping nations, including China, off This bill has gotten a lot of support one feedstock going in but no trans- without those regulations. from the community out there. The mission system. So unlike the elec- That levelizes the world at our ex- Christian Science Monitor has an arti- tricity that comes to your house, it is pense. That’s a dangerous notion. cle on it supporting the bill. ‘‘Big Oil’s not connected on a grid somewhere to So back to the nexus. This is critical. Friends in the Senate’’ is an editorial a power source. It’s a standalone sys- You’re taking excellent leadership. I by New York Times on this subject, tem for electricity production, but you want to thank you for that, and I want and here I have a list and I want to just do have to have a feedstock going in. to thank you for the time tonight. mention a few of those because it’s so But this unit runs off of the feed- Mr. BARTLETT of Maryland. Thank important. It notes how broad the sup- stock as natural gas, can run off eth- you very much for your observations. port is for this bill. anol, it can run off of solar, it can run We’re doing a number of things in the Here are letters from the National off of a variety of renewable sources; Congress. It would have been a whole Association of Manufacturers, the but it has to have a feedstock as you lot better if we were doing them 25, 28 United States Chamber of Commerce, know—are you a physicist? years ago, by the way, because what the Retail Industry Leaders Associa- Mr. BARTLETT of Maryland. Physi- we’re doing in the Congress will not be tion. And then I have here a letter ologist. adequate to meet the challenge. But signed by more than three pages of Mr. WAMP. Physiologist. As you it’s a start. It’s what we can do. double column organizations, more know it has to have a feedstock, but it I have a book here that came across than three pages, double column, and has tremendous potential. my desk: ‘‘A Very Unpleasant Truth let me just mention a few of them. And just recently here in the House, . . . Peak Oil Production and Its Global American Council on Renewable En- I have promoted, and much to his cred- Consequences’’ by two very ergy, Alliance to Save Energy, Alter- it, Dan Beard, the chief operating offi- credentialed authors, both Ph.Ds from native Fuels Renewable Energies Coun- cer of the House, has been and viewed one of our large oil companies. And cil, American Council for an Energy Ef- these systems as has the chairwoman they say in this book, The first and ficient Economy, American Solar En- of the Legislative Branch Appropria- most important thing that needs to be ergy Society, American Wind Energy tions Subcommittee, DEBBIE done is to educate and convince the Association, the Audubon Society, WASSERMAN SCHULTZ, been in consulta- public that a problem even exists; and Babcock and Brown, Bloom Energy, tion with us about the notion that in that’s what I have been trying to do for Business Council for Sustainable En- just a couple of years, we could take an more than 3 years now. The public ergy, California Energy Commission, entire House office building in Wash- must accept, they say, that the current Center for Energy and Environmental ington, D.C. and take it off of the fos- system based on cheap oil is not sus- Sustainability at James Madison Uni- sil-fired powerhouse here on Capitol tainable and cannot be kept intact re- versity. Constellation Energy, well- Hill, take it off of that coal powerhouse gardless of what politicians promise. known locally. They provide much and put it on a solid oxide stationary electricity for the Baltimore area. The b 2015 fuel cell to demonstrate to the country Dow Chemical Company, Duke Energy, that emissionless, completely Let me mention quickly four things Earthjustice, Edison Electric Institute. emissionless, not nuclear, but through that I’m personally involved with and And so you notice the broad, broad a new technology called a stationary personally doing. spectrum of support for this bill from a solid oxide fuel cell, you could com- We have a new bill just introduced lot of those who are concerned about pletely power and cool and heat and last evening. It is a companion bill to the environment and those who are cool the water in a huge House office S. 2821 that has enormous support that concerned about the simple fact that building or a 100,000 square foot com- I will mention very briefly. Our bill is we have got to have more energy. mercial center with this new tech- H.R. 5984. Environmental Defense Fund, Exelon nology. Tremendous. In one of his columns last week, New Corporation, GE Energy, Geothermal You would think every utility in the York Times’ Thomas Friedman decried Energy Association. Greenpeace? The country would be interested in that be- the stalemate that has so far prevented Home Depot, Honeywell, Idaho Rural cause there is no transmission grid. It the extension of renewable energy tax Council, John Deere Renewables, JP makes us more terrorist-proof because credits that would otherwise expire Morgan, League of Conservation Vot- you can’t shut down the transmission this year. I noted that in some opening ers, Lowe’s Companies, Michigan Alli- grid because everybody’s got their own comments this evening, and this was ance of Cooperatives. National Associa- electricity source. And if transpor- one of the things that inspired us to tion of Home Builders, a very conserv- tation is moving towards electricity, it pick up this Senate bill and to file it in ative organization to which I belonged has tremendous potential. the House. in another life. National Association of I would just say that your energy ef- This bill does several things: Exten- State Energy Officials, National Elec- ficiency, renewable energy, conserva- sion and modification of the renewable trical Manufacturers Association. tion programs should be at the fore- energy production tax credit; extension I’m reading, by the way, about one- front followed by a real understanding and modification of the solar energy tenth of all of those who have signed that we have capacity needs in this and fuel cell investment tax credit; on. country. I, too, was in China in Janu- clean renewable energy bonds; exten- National Wildlife Federation, Nat- ary. I have a great concern because sion of the special rule to implement ural Resources Defense Council, North- what I heard and saw in China about FERC restructuring policy; extension east Public Power Association. their attitudes towards the environ- and modification of the credit for en- Oh, my, more pages, one-and-a-half ment is that this is indeed their indus- ergy efficiency improvements to exist- more pages. I won’t bother reading trial revolution and they’re entitled to ing homes; extension of the tax credit those, but it’s the same kinds of broad, it. for energy efficient new homes; exten- broad spectrum.

VerDate Mar 15 2010 15:08 Nov 08, 2010 Jkt 069102 PO 00000 Frm 00148 Fmt 0688 Sfmt 0634 E:\BR08\H08MY8.005 H08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD 8292 CONGRESSIONAL RECORD—HOUSE, Vol. 154, Pt. 6 May 8, 2008 Like Suntech, I’ll mention Suntech, nology. This industry is small but it is corn for ethanol, every bit of it, and second largest solar cell manufacturing really growing. The report is called Re- discounted it for fossil fuel input, company in the world. Six years ago it newable Energy and Energy Efficiency: which is huge, at least 80 percent—and didn’t exist. I was privileged to have Economic Drivers for the 21st Century. you’re just kidding yourself if you’re lunch with the young Chinese man who It’s available for free. You can burning fossil fuel in another form and started it just 6 years ago, and now, it’s download it at www.ases.org. pretending that you’re displacing gaso- number two in all of the world. Solar power grew worldwide by an line. If we used all of our corn for eth- Another thing that I am doing per- average of 18 percent between 1980 and anol, discounted it for fossil fuel input, sonally, we are having a SMART Green 2000. It’s accelerated dramatically in it would displace 2.4 percent of our gas- Showcase in conjunction with the recent years, growing by close to 50 oline. They noted that if you tuned up SMART Organization. This will be on percent annually since 2002. In spite of your car and put air in the tires you July 18 in Frederick, Maryland, and that dramatic growth, it still produces could save as much gas. we’re going to showcase there a num- a tiny, tiny percentage of our elec- Well, now there’s a backlash over ber of smart energy solutions for many tricity. That’s because we get elec- corn ethanol. A U.N. official said that of the problems that homeowners and tricity production in huge, huge what we had done was a crime against small businesses have. It has its own amounts, primarily from coal, 50 per- humanity. There are other factors in- Web site, cent in our country, and from nuclear volved. One of the major ones is the www.smartgreenconference.com. So power and hydro power. Those are the very high cost of oil as energy, but cer- you can find more information on it three largest sources of energy for coal. tainly, our diversion of corn to ethanol there. From a significantly larger base, is one of the factors that has increased I have a bill, the Self-Powered Farm wind power has also been growing rap- the cost of food around the world. And Energy Bill. We’re going to give a prize idly. U.S. wind power capacity surged I was shocked at how quickly these to the first farm that can demonstrate 45 percent in 2007. So lots of new jobs food shortages developed, and just a that they’re capable of independence are being created. We need to create couple of weeks ago, you remember from off-site sources of energy, fuel, more. reading about food riots in a number of I want to spend the remaining time, and raw materials; a community re- the countries in the world. source for food and energy. They will and it won’t be very long, looking at There is a new bubble that I think have food and energy left over to pro- the alternatives that we have and what will break, and that is the cellulosic vide for the community or raw mate- reasonable expectations should be. And ethanol bubble. We will get something I need to come back, and we’ll spend a rials for food. It minimizes or elimi- from cellulosic ethanol. full hour just looking at reasonable ex- nates ongoing operating expenditures Oh, the National Academy of pectations. Sciences has also looked at soybeans to off-site entities for fossil fuel-de- I’d like to point to two expectations for soy diesel, and they said that if we rived energy; employs sustainable that did not turn out to be reasonable. use all of our soybeans for soy diesel, farming practices for long-term soil It kind of represented the irrational no soybean oil for our cooking, no soy fertility; and produces at least two exuberance that Alan Greenspan spoke protein for feeding our cattle and so times as much energy, including fuel or about in the market. raw materials for fuel, as it consumes. The first of these was hydrogen, not forth, if we use it all for soy diesel, it Now, if we can’t do this, we’re in hydrogen from renewables as the chart would displace 2.9 percent of our diesel. trouble. If our farms can’t be energy indicates here but hydrogen from any Now, I’m going to make an observa- independent, and I think they can, and source. Remember, we were going to tion, just an intuitive observation, the we have a prize for that farm that will have a hydrogen economy? The Presi- kind of thing that I think a rational get there first. dent mentioned this in his State of the person might conclude. We grow our The next chart speaks to the fourth Union. I think we spent $1.5 billion on corn and our soybeans on our best land. thing that I’m personally involved in. it. You don’t hear anybody talk about It’s level, it’s fertile. We dump all sorts This is the DRIVE Act. The Depend- hydrogen today, and that’s because I of fertilizers and herbicides and insec- ence Reduction through Innovation in think we’ve finally figured out that hy- ticides on it to nurse out these huge, Vehicles and Energy is what DRIVE drogen is not an energy source. It is huge yields of corn, 250-bushels per stands for. The purpose of the bill is to simply a way to carry energy from one acre. achieve liquid fuel independence place to another place. Now, we are going to get this cellu- through alternative energy sources. There is no hydrogen out there free losic ethanol from our wasteland. It’s Some of the key points include incen- for the having. You have got to not good for growing corn or soybeans tives for the auto industry to produce produce it by using more energy than or wheat or any of these things. And flexible fuel, hybrid and electric vehi- you will get out of hydrogen. That is just intuitively, I wonder how much cles; the conversion of gas stations to the immutable second law of thermo- more energy we could get from our fuel stations, where consumers can dynamics. If you can repeal that law, wasteland, which isn’t good for grow- plug into an electric car to fill up on you can repeal the law of gravity, and ing any of these crops, and we’re going ethanol; as well as tax credits for then we have a whole different world, to get it without fertilizer, how much Americans who buy flexible fuel cars. don’t we? So hydrogen is rarely, rarely energy can we get from that It costs so little, maybe less than mentioned now because that bubble sustainably? Well, we can get a lot the $100 to build a flex-fuel car. Every car broke. first year and the second year by sim- in Brazil is flex-fuel. They could be, I Another bubble that broke very re- ply going in and in effect raping the think should be in our country, and we cently was the corn ethanol bubble. soil, taking off all the organic mate- have a bill, H.R. 670, on flex-fuel vehi- High, high hopes were held out for corn rial. cles, incenting the industry to move to ethanol, very unrealistic expectations. But to at least some measure and in flex-fuel vehicles. When we have the I did some computations with Dr. John some soils to a very large measure, this new fuels we’ll be ready for it. If we Darnell, the most broadly knowledge- year’s weeds and grasses grow because haven’t done that, there will only be a able scientist that I know and I’m priv- last year’s weeds and grasses died and small percentage of the cars that could ileged to have on my staff. We did some are fertilizing them. It’s a recycling of use the new fuels. back-of-the-envelope computations the nutrients that is really, really ap- In addition to these things, I’m work- several years ago and convinced our- parent in a tropical rain forest. If you ing with my colleague, Democratic selves that ethanol from corn could take the tropical rain forest vegetation Congressman MARK UDALL from Colo- never make any meaningful contribu- away in many places, you leave what’s rado, to distribute a new report about tion to freeing us from our need for oil. called laterite soils which grow very green collar jobs from energy effi- The National Academy of Sciences little because all of the nutrients were ciency and renewable energy tech- has now said that if we use all of our in circulation, in growth, death, decay,

VerDate Mar 15 2010 15:08 Nov 08, 2010 Jkt 069102 PO 00000 Frm 00149 Fmt 0688 Sfmt 0634 E:\BR08\H08MY8.005 H08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD May 8, 2008 CONGRESSIONAL RECORD—HOUSE, Vol. 154, Pt. 6 8293 rebirth and growing again. It’s all recy- huge amounts that people expect that cludes freedom to hold opinions with- cling. we will get from that. So I look for- out interference and to seek, receive, So we’re going to get some energy ward to coming back and talking for and impart information and ideas from cellulosic ethanol, but it is not a another hour about realistic expecta- through any media and regardless of silver bullet. It will not solve our prob- tions: What can we realistically get any frontiers.’’ It may not be as ele- lem. from these renewable sources? gant as our first amendment, but its ef- Here I have a look at all of the dif- f fect and its desire and goal are the ferent places from which we might get same. WORLD PRESS FREEDOM DAY energy, and I’m going to put the last For Americans, this day should spur chart up now because our time is just The SPEAKER pro tempore. Under us to consider the role that journalists about out. I want to come back and I the Speaker’s announced policy of Jan- play in our society and to ponder what want to spend the full hour talking uary 18, 2007, the gentleman from Cali- our Nation would be like if this corner- about realistic expectations from tar fornia (Mr. SCHIFF) is recognized for 60 stone of liberty were to be curtailed. sands, more potential oil than all the minutes. Many Americans take the concept of a oil in the world. Oil shales, again, in Mr. SCHIFF. Mr. Speaker, last Sat- free press for granted and don’t realize our country, more potential oil than urday, May 3, was World Press Free- that an unfettered press is vital to all of the oil deposits in the world. dom Day. Two years ago, in conjunc- America’s national security and to our tion with World Press Freedom Day, b 2030 democracy here at home. Congressman MIKE PENCE, Senator Freedom of the press is so central to How much can we realistically expect CHRIS DODD, Senator DICK LUGAR and I our democracy that the Framers en- to get from them? I’ll make a very established the Congressional Caucus shrined it in the very first amendment quick observation. We are very much for Freedom of the Press. Since then, to our Constitution. Thomas Jefferson like the young couple that has gotten a this bipartisan, bicameral caucus has so valued the principle of press freedom big inheritance from their grand- sought to highlight the importance of that he said, given the choice between parents and they’re living lavishly. free expression around the world. The a free government or a free press, he Eighty-five percent of the money they caucus is a forum where Members of would choose a free press. He said, spend comes from their grandparents’ Congress can work to combat and con- ‘‘The basis of our governments being inheritance and only 15 percent from demn media censorship and the perse- the opinion of the people, the very first what they earn. And it’s going to run cution of journalists worldwide. object should be to keep that right; and out before they die, so obviously Our caucus works to send a strong were it left to me to decide whether we they’ve got to do something, they’ve message that Congress will defend should have a government without got to earn more or spend less. democratic values and human rights newspapers or newspaper without a That’s precisely where we are. wherever they’re threatened. We work government, I should not hesitate a Eighty-five percent of all of the energy to highlight abuses of press freedom moment to prefer the latter.’’ we use comes from fossil fuels. It will and foster reforms in support of press Journalists have jealously guarded run out. It is not forever. And so this 15 freedom around the world. We have their rights and American courts have, percent is going to have to grow. And hosted panel discussions with press in the main, carved out broad protec- about half of that is nuclear, the rest freedom experts, journalists and vic- tions for the press. In the United of it is a broad spectrum of potential tims of press freedom crimes. We have States, the press operates almost as a renewables here. That’s going to have written to the leaders of countries fourth branch of government, the to grow. which jail journalists, impose censor- Fourth Estate, independent of the By the way, I think that this is an ship, and allow harassment, attacks other three, and positioned as an agent enormously exciting challenge. I am and threats to occur with impunity. of the free people. excited about this. America is the most And we’ve spoken out here on the Winston Churchill agreed with the creative, innovative society in the House floor and in the media to call for idea that a free press was almost an- world. With proper understanding and reforms in countries that seek to cen- other independent branch of govern- proper leadership, we really can do sor freedom of speech and expression. ment saying, ‘‘A free press is the miracles. We put a man on the moon in The caucus enjoys the support of a unsleeping guardian of every other less than a decade. wide range of organizations, including right that free men prize; it is the most I think we need a program that has a Reporters Without Borders, Freedom dangerous foe of tyranny. Under dicta- total commitment of World War II. I House, the Committee to Protect Jour- torship the press is bound to languish, lived through that war, I know what it nalists, the National Endowment for and the loudspeaker and the film to be- was. Daylight savings time, victory Democracy’s Center for International come more important. But where free guard, nobody told you you had to do Media Assistance, as well as the leg- institutions are indigenous to the soil it, that’s just what you did because you endary Walter Cronkite. and men have the habit of liberty, the were a patriotic American. World Press Freedom Day was first press will continue to be the Fourth We need the technology focus of put- designated by the United Nations Edu- Estate, the vigilant guardian of the ting a man on the moon—and many of cational, Scientific and Cultural Orga- rights of the ordinary citizen.’’ us remember that exciting decade—and nization in 1993 as an occasion to pay From the pioneering work of journal- we need the urgency of the Manhattan tribute to repressed journalists and to ists during the Civil War, to the Project. I think once again America reflect upon the role of the media in ‘‘muckrakers’’ who were committed to has become a major manufacturing and general in advancing fundamental exposing the social, economic and po- exporting country, manufacturing and human rights as codified in inter- litical ills of industrial life in the early exporting to the rest of the world the national law, regional conventions, and 20th century, to the work of the Wash- technologies for sustainable renew- national constitutions. In keeping with ington Post reporters Bob Woodward ables. that tradition, we have hosted a Spe- and Carl Bernstein in uncovering the Mr. Speaker, I think this is a chal- cial Order hour in honor of World Press Watergate scandal a year later, jour- lenging opportunity, but it will not be Freedom Day each year since the in- nalists have performed a crucial role as easy. And we have very unrealistic ex- ception of the caucus. watchdogs of American freedom. pectations about what we can get from The Universal Declaration of Human But in order for the press to do its many of these things. Two of the bub- Rights, which is a foundation of the work properly, it must be free, and bles have already broken. I will predict postwar human rights movement, guar- journalists must be able to do their the next bubble that will break is the antees freedom of expression in article work without fear of retribution. Infor- cellulosic ethanol bubble. We will get 19. ‘‘Everyone has the right to freedom mation is power, which is precisely something from that; it will not be the of opinion and expression; this right in- why many governments attempt to

VerDate Mar 15 2010 15:08 Nov 08, 2010 Jkt 069102 PO 00000 Frm 00150 Fmt 0688 Sfmt 0634 E:\BR08\H08MY8.005 H08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD 8294 CONGRESSIONAL RECORD—HOUSE, Vol. 154, Pt. 6 May 8, 2008 control the press to suppress opposi- denied access to information because epidemics that the Chinese government tion and preempt dissent. their governments don’t want them to wants to have the ability to hide. Far too often, the reporters and edi- have that access. These are just a few of the examples tors who demand reform, account- It’s also important to note that even that I’ve chosen to highlight China to- ability and greater transparency find as the world continues to globalize, night. themselves at risk. The censorship, in- tragically press freedom continues to China is an enormously important timidation, imprisonment, and murder slip. This was the sixth consecutive country. China has emerged in a big of these journalists are not only crimes year that Freedom House’s index way on the world stage. And China is a against these individuals, they also im- showed a reduction in global press free- country of immense promise. It is im- pact those who are denied access to dom, a worrisome trend. portant both to the Chinese Govern- their ideas and information. As I mentioned, this is the third Spe- ment and to the Chinese people, as well Freedom of expression and a free cial Order hour we have held in rec- as to the rest of the world, that we help press is not just a cornerstone of de- ognition of World Press Freedom Day. to promote press freedom in our largest mocracy, it has also proven to play an The first year we launched our caucus, neighbor in the world, and one that important role in economic and social we outlined the intention of our caucus will take a position of increasing im- development. James Wolfensohn, and press freedom abuses around the portance in the years to come. former President of the World Bank, entire world. Last year, we decided has long argued that ‘‘a free press is that each year we would focus on a par- b 2045 not a luxury, it is at the core of equi- ticular hot spot and highlight a single table development.’’ country where press freedom rights are Before I continue, I want to thank all The media exposes corruption, helps particularly limited. the press freedom advocacy organiza- build a public consensus to bring about Last year, we focused on Russia. We tions that helped provide this informa- change, and facilitates the trans- profiled 18 journalists murdered in Rus- tion for tonight’s discussion: The Com- mission of innovative ideas and valu- sia during the administration of out- mittee to Protect Journalists, Report- able information that empowers people going President Vladimir Putin. All of ers Without Borders, the National En- to share and shape their own destinies. these journalists were believed to be dowment For Democracy, and Freedom There is an emerging consensus among killed due to their work. Most of these House have all been chronicling press development institutions that a skilled murders remain unsolved to this day. freedom abuses in China, and much of and a viable media sector is a society’s Tonight, I will focus on the lack of what I will share with you tonight is a most promising tool for motivating press freedom in China leading up to product of these groups’ research, in- government reform and poverty reduc- the 2008 Summer Olympic games in vestigation, and reporting. I want to tion. Beijing this August. I have chosen to thank them not just for their efforts in Regrettably, censorship, intimida- highlight press freedom in China for a helping us here tonight but, more im- tion, imprisonment, and even murder number of reasons, including its failure portantly, for all of their work to de- of journalists are far too common in to implement promised press freedom fend journalists and journalism around countries all around the world. The reforms before the Olympics, its incar- the world. And I also want to take a map to my right provides a visual rep- ceration of more journalists than any moment to thank Sean Oblack of my resentation of press freedom rights by other country, its lack of independent staff for all of his effort and leadership country. This map was provided by media, and its censorship of the Inter- in helping to put this caucus together Freedom House, which releases an an- net, all of which I will be discussing to- and the presentation tonight. nual index called Freedom of the Press: night. During the Olympic bidding process, A Global Survey of Media Independ- As the world’s most populous coun- as international opposition grew to re- ence. The countries that are high- try, China denies more citizens access warding the Olympics to China, the lighted in green are listed as having a to a free press than any other country. Chinese Government promised to ‘‘free’’ press. The countries in yellow It is also tied for 181st place out of 195 strengthen human rights in China. represent countries that are ‘‘partly countries in press freedom rights in This included a commitment to press free.’’ And the countries colored purple Freedom House’s survey. To give you a freedom. In the days leading up to the are countries they describe as ‘‘not bit of perspective, China ranks between Olympic vote, Wang Wei, Secretary free’’ in terms of press freedom rights. Syria and Iran in the survey. And Rus- General of the Beijing Olympic Bidding And as you can see, in addition to prob- sia, which as I just mentioned lost 18 Committee, said, ‘‘We will give the lems here, we have vast expanses in Af- journalists, murdered journalists, dur- media complete freedom to report rica, in Asia, in the Middle East, and in ing one president’s administration, when they come to China.’’ South Asia. that country is ranked ahead of China Regrettably, though, China has not To break it down a little more, when on the survey. delivered ‘‘complete freedom’’ to its taking population into account, 42 per- As I speak here tonight, the Chinese own reporters. In September, 2007 Teng cent of the world’s people live in coun- Government limits more than 1 billion Biao and Hu Jia, two of China’s most tries that have a press that is ‘‘not people’s access to an open Internet and celebrated human rights activists, in free.’’ Forty percent of the world’s pop- an independent media, despite the fact an open letter to the international ulation live in countries that have only that article 35 of the Chinese Constitu- community, detailed China’s failure to a ‘‘partly free’’ press. That is exhibited tion guarantees freedom of speech, as- live up to its Olympic commitments, here in yellow. And in green we see sembly, association and publication. including press freedom. Teng and Hu that only 18 percent of the world’s citi- Unfortunately, other articles in its wrote: zens enjoy a ‘‘free press.’’ Quite re- Constitution subordinate these rights ‘‘As of this writing, 35 Chinese jour- markable; 18 percent ‘‘free,’’ 42 percent to what is called the ‘‘national inter- nalists and 51 writers are still in pris- ‘‘not free,’’ and the additional 40 per- est.’’ This allows the ruling communist on. Over 90 percent were arrested or cent only ‘‘partly free.’’ party to maintain direct control over tried after Bejing’s successful bid for More than 80 percent of the world’s the news media through the Central the Olympics in July of 2001. For exam- people, therefore, are denied full access Propaganda Department, the CPD. ple, Dr. Xu Zerong, a scholar from Ox- to information. This is not for eco- The Chinese Government has even ford University who researched the Ko- nomic reasons, as you might expect, proposed fines for domestic and foreign rean War, was sentenced to 13 years’ such as printing costs, lack of Internet news organizations that report ‘‘sudden imprisonment for ‘illegally providing connections or illiteracy, all of which events,’’ such as protests, disease out- information abroad.’ Qingshuijun, are problems in their own right. breaks, or national disasters without Huang Jinqiu, a freelance writer, was Eighty-two percent of the world’s pop- government authorization. Some of sentenced to a 12-year term of impris- ulation, 82 percent of the world is being these are public health emergencies, onment for his online publications.

VerDate Mar 15 2010 15:08 Nov 08, 2010 Jkt 069102 PO 00000 Frm 00151 Fmt 0688 Sfmt 0634 E:\BR08\H08MY8.005 H08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD May 8, 2008 CONGRESSIONAL RECORD—HOUSE, Vol. 154, Pt. 6 8295 Some writers and dissidents are prohib- ing anything sensitive and warned him is not unique around the world for this ited from going abroad; others from re- and his family of possible legal action problem. turning to China.’’ if he did not. Sipa Press photographer According to the Committee to Pro- Due to this letter, due to this letter, Natalie Behring described to Human tect Journalists, as of December 1, 2007, Hu Jia now sits in jail. I will be Rights Watch the obstacles foreign re- 127 journalists were in prison around profiling his case later in the hour. porters face in finding a cooperative the world as a consequence of their Human Rights Watch reports that source: ‘‘In light of the new rules, the work. Of these more than 80 were being Chinese journalists remain closely ob- Chinese Government can’t stop us from held by only five countries, however: served by state security agencies to en- talking to anyone; so they intimidate China, Cuba, Eritrea, Azerbaijan, and sure that their reporting reflects the the subjects of our reporting rather Burma. official government position. The gov- than intimidating the reporters.’’ This statistic only includes journal- ernment’s Publicity Department heav- In the fall of last year, I, along with ists that the Committee to Protect ily influences the weekly editorial con- my Congressional Caucus For Freedom Journalists can account for and that tent for print, radio, and television of the Press co-Chair MIKE PENCE, CPJ has confirmed are being jailed. It platforms by preventing the reporting wrote a letter to Liu Qin, president of does not include another alarming cat- of sensitive topics that fall under the the Beijing Organizing Committee of egory that the organization tracks, and vague metric of issues affecting ‘‘social the Olympic games, expressing our that is journalists who have either dis- stability.’’ Journalists that stray from deep disappointment in the govern- appeared or have been abducted by the government line, as Teng and Hu ment’s failure to live up to the prom- nonstate entities, including criminal noted, face imprisonment, travel re- ises that it made before the Olympic groups and gangs, rebels, and militant strictions, or are effectively deported. vote in 2001. The letter expressed our groups. Foreign correspondents do not expe- frustration that Chinese journalists CPJ’s research has found that nearly rience ‘‘complete freedom’’ either when face imprisonment for reporting stories 17 percent of journalists jailed world- reporting in China. On January 1, 2007, unfavorable to the state, are forced to wide in 2007 were held without any pub- the Chinese Government introduced a toe the government line, and the ever- licly disclosed charge. Many for temporary measure that was intended increasing restrictions on accessible months, some for years, and some in to increase foreign reporters’ freedom material on the Internet. secret locations. The majority of journalists being im- in China before, during, and after the In the past the Olympic games have prisoned are being held on spurious Olympic games. This measure was set helped establish freedoms in countries antistate allegations such as subver- to expire in October, 2008. While some struggling to emerge from authori- sion or divulging state secrets or act- foreign correspondents have experi- tarian rule. Most notably, the 1988 ing against some undefined national in- enced increased journalistic freedom summer Olympics in Seoul, Korea terests. CPJ has found out that about since the measure went into effect, played a critical role in helping to 57 percent of journalists in their survey most have not. bring democracy to that country. It’s are jailed under these charges, and of A Foreign Correspondents Club in my hope that China begins to live up to those many are being held, regrettably, China’s survey showed that 40 percent its promise of complete freedom for by the Chinese Government. of foreign correspondents have experi- journalists, that it will cease the har- These statistics demonstrate that enced harassment, detention, or an of- assment and imprisonment of journal- China is not the only offender in this ficial warning during the news gath- ists, and allow the Chinese people to practice but clearly one of the worst. ering in Beijing and other areas. experience the full communicative and As we have stated, we have set aside One foreign reporter in China that economic powers of the Internet and this time tonight to highlight China. Human Rights Watch interviewed expe- that the games will usher in a newer, But while we are on the subject of rienced harassment and had difficulty freer era in Chinese public life. jailing journalists nationwide, I would renewing her work visa after covering I’m now going to spend a few minutes like to take a brief moment to discuss political dissidents and the highly pub- talking about one of the extreme meas- one particular case in Eritrea that was licized murder of Chinese journalist ures that governments take to censor brought to my attention by a con- Lan Chengzhang. She told Human the media, and that is arrest and de- stituent of mine who works with Am- Rights Watch, ‘‘I know the stories we tention. Unfortunately, it’s become nesty International Group 22 in Pasa- have done have angered the Chinese commonplace for some governments to dena. Government, and my visa renewal silence journalists simply by jailing Eritrea is a country of only 4.6 mil- problems began after,’’ after those re- them. And, regrettably, there is no big- lion people; yet it imprisons the third- ports. ger offender in this regard than China. most journalists of any country: 14. Other foreign correspondents have And, again, this is one of the main rea- What’s worse, the Government of Eri- been detained for legal reporting ac- sons we have chosen to highlight China trea will not even confirm whether the tivities. The New York Times Shang- here tonight. journalists in its custody are alive or hai-based correspondent David Before I discus China’s imprisonment dead, and it also holds the most jour- Barboza, his Chinese assistant, and a of journalists, I would like to give a nalists in secret locations. photographer were detained for more brief overview of this problem around One such journalist being held in a than 10 hours by staff at a factory in the world. And in fairness and in com- secret location in Eritrea is Seyoum Guangdong province while doing a pleteness, while we are focusing on Tsehaye, a freelance reporter. His ar- story about toxic lead paint discovered China because of the magnitude of the rest and jailing was believed to be part in the factory’s exports to the United problem there and because of the prom- of the government’s crackdown to States. Barboza was eventually let go ises that were made in advance of the eliminate political dissent ahead of after writing a statement explaining Olympics, it’s important to recognize elections scheduled for December of the reason for his factory visit and this is by no means a problem confined 2001, which were later cancelled. He stating that he hadn’t obtained permis- to China. Tragically, as we’ve seen in was arrested on the street in Sep- sion to take the photographs. the diagrams we had up earlier, press tember of that year, the first day of a At particular risk are the assistants freedom is very limited in many places major round-up and imprisonment of and sources of foreign reporters as around the world and under great as- reformers in Eritrea. There are con- they’re helping on stories that domes- sault in many places around the world. cerns about his health, but the govern- tic reporters cannot cover. One local So China is not unique in this respect. ment has refused to provide details assistant of a foreign press cor- It is unique in its size. It’s unique in about his well-being. He has never been respondent was told by security agents some of the technological instruments allowed a family visit or a lawyer. He that it was his responsibility to notify it has used to effectuate censorship in has never been charged or appeared be- the agents if the reporter was uncover- this era of Internet journalism, but it fore any court. Last year Reporters

VerDate Mar 15 2010 15:08 Nov 08, 2010 Jkt 069102 PO 00000 Frm 00152 Fmt 0688 Sfmt 0634 E:\BR08\H08MY8.005 H08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD 8296 CONGRESSIONAL RECORD—HOUSE, Vol. 154, Pt. 6 May 8, 2008 Without Borders honored him as their are in, but Reporters Without Borders Zheng Yichun is another illustration ‘‘2007 Journalist of the Year.’’ And to- reports that journalists in jail in China of the problem in China. He was sen- night we take a moment to think frequently experience the harshest of tenced to 7 years in prison followed by about Seyoum Tsehaye, freelance re- conditions. They are placed in over- 3 years of deprivation of political porter in Eritrea, held in custody in a crowded cells, subjected to forced labor rights for writing a series of editorials secret location since September of 2001. and regularly beaten by their guards that directly criticized the Communist So it’s clear this is a problem not and fellow prisoners. This ill treatment party and its control of the media. only associated with China. It is also is at its worst in the first weeks in cus- Li Changqing, a journalist for the clear there are more cases of impris- tody when police try to extract confes- Fuzhou Daily, was sentenced to 3 years oned journalists around the world than sions. Many of the charges weighed in prison for ‘‘spreading false and we have time to discuss tonight or, for against journalists in China are alarmist information’’ when he re- that matter, over the course of a great trumped up. For Americans, these ported about a 2004 dengue fever out- many nights. charges are pretty unimaginable. To break. It’s important, though, to cast a give you some perspective on why some In May 2006, Internet writer Yang spotlight tonight on China because of of the journalists are sitting in jail Tongyan was sentenced to 12 years in the significant role it plays on the right now, I am going to briefly men- prison for posting articles on overseas international stage. It’s one thing to tion a few of their cases. Web sites in which he simply called for talk about Eritrea and the role it These cases are examples of journal- the release of Chinese dissidents. plays; it’s another to talk about one of ists being jailed for what we in the the world’s superpowers with all of its West would consider responsible jour- In July 2006, Li Yuanlong, a reporter promise, with all of its future, and with nalism. I wouldn’t even get into some for the Bijie Daily, was sentenced to 2 a current policy extremely inhibiting of the other journalism we see here, as years in prison after he posted essays of a free press. well the rest of the world, but for laud- on foreign Web sites in which he dis- In addition to hosting the summer’s able journalism, for journalism we cussed the harsh living conditions of Olympic games, China’s the world most would applaud in this country, these peasants in the Guizhou province. populous nation, permanent member of journalists are being jailed. Zhang Yu Huafeng, I believe we have Yu’s the United Nations Security Council, Jianhong, for example, the former edi- picture right here to my immediate and as I mentioned, an emerging super- tor of the now closed news website Ae- right, was the deputy editor and gen- power. Rightly or wrongly, many coun- gean Sea, was arrested in 2006 and eral manager of the Nanfang Dushi tries look to China to set an example charged with ‘‘inciting subversion’’ for Bao, Southern Metropolitan News. He that others can follow. In this case posting an essay criticizing China’s was detained less than a month after that is a great concern to the well- human rights record and the poor the newspaper reported a suspected being of global citizenry. treatment of journalists, ironically SARS case in Guangzhou, the first case As I mentioned here tonight, China ahead of the Olympic games. since the epidemic died out in July promised the world community to im- Lawyer Yan Maodong, who also calls 2003. Thankfully, Mr. Huafeng was re- prove press freedom in advance of the himself Guo Feixiong, and his picture leased earlier this year when his sen- Olympics. For 9 years, however, it has is here as well in the upper right-hand tence was reduced. held the distinction of being the corner, was arrested in September of Zi Beijia, of Beijing TV, was sen- world’s largest jailer of journalists. 2006 because of his critical writings and tenced by the Beijing Number 2 Inter- As the Internet continues to grow human rights activism. He was offi- mediate Court to a year in prison for and more and more people around the cially accused of selling a book using a the unusual crime of ‘‘infringing on the world have access to the Internet, more false publishing reference, but he says reputation of a commodity.’’ That is people are getting their news online. the book’s content was what the gov- really quite remarkable. Zi’s arrest Nowhere is this truer than in China. ernment objected to. But imagine came amid widespread international This is a fact that the Chinese Govern- being jailed since September of 2006 on reports about food and product safety ment has not overlooked. And that is the charges of using a false publishing defects in China. After the arrest, CPJ why 18 of the 29 jailed journalists reference. research found that domestic news re- According to the New York Times, worked online, according to CPJ. Re- ports about consumer safety were no- Guo had repeatedly called on China’s porters Without Borders lists China as ticeably tamer. jailing an additional 50 ‘‘cyber-dis- Communist party leadership to liber- Imagine in this country if you could sidents.’’ alize the political system. His wife and jail a journalist for infringing on the China’s list includes imprisoned supporters in the international human reputation of a commodity, for taking Internet journalist Shi Tao, an award- rights community have said that Guo issue with the safety of a child’s toy, winning journalist who is serving a 10- has been tortured in custody and that lead paint, the safety of a train or an year sentence for e-mailing details of a the police coerced him to confess to a air bag. Imagine if you could be jailed government propaganda directive to an nonpolitical crime. He was sentenced for that. And you can imagine the situ- overseas Web site. We’ll talk more to 5 years in prison in November of 2007 ation that occurs in present day China. about Shi Tao later tonight. for ‘‘illegal commercial activity.’’ But the list of China’s unenviable The New York Times has also re- Wu Lihong, an environmental activ- distinctions when it comes to press ported that a Tibetan scholar, Dolma ist, was jailed after criticizing the on- freedom and the jailing of journalists Kyab, Dolma’s picture is here to my far going polluting of Lake Taihu, the includes one other significant fact: right, has been jailed since 2005 after country’s third biggest lake and a CPA lists China as having the longest- writing an unapproved history of Tibet. major source of drinking water in the serving journalists in jail. Chen Renjie Reporters Without Borders reports eastern province of Jiangsu. He also de- and Lin Youping were jailed in China that Dolma was sentenced to 10 years nounced the uncontrolled dumping of in July, 1983, for publishing a pamphlet in prison at a secret trial on September industrial waste by privatized city- titled Ziyou Bao Freedom Report. 16, 2005, by the Lhasa People’s Inter- owned firms. After being hounded by mediate Court for ‘‘endangering state police and local organizations, he was b 2100 security’’ and for alleging spying. He arrested in April 2007 and thrown in And their co-defendant, Chen Biling managed to smuggle a letter out of jail, accused of demanding money from was executed. We will profile these prison in September 2005 to the U.N. the firms. He was tortured during in- journalists later tonight as well. Human Rights Commission saying he terrogations and not allowed any de- Journalists in China are also held in had been jailed for writing about de- fense witnesses at his trial. He was sen- appalling conditions. Prison is never mocracy, freedom and the situation in tenced to 3 years in prison for theft and pleasant no matter what country you Tibet. extortion.

VerDate Mar 15 2010 15:08 Nov 08, 2010 Jkt 069102 PO 00000 Frm 00153 Fmt 0688 Sfmt 0634 E:\BR08\H08MY8.005 H08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD May 8, 2008 CONGRESSIONAL RECORD—HOUSE, Vol. 154, Pt. 6 8297 And again, it is hard to imagine what journalists, Eritrean journalists, Cuban Earlier this year, the Paris City it would be like in this country if re- journalists, and all other journalists Council named Hu an honorary citizen porting about contamination of drink- around the world who have risked their of Paris. This title was bestowed on Hu ing water or dumping of toxics into a safety and freedom to spread valuable for his work as an activist on behalf of lake would end you up in prison for a information around their countries and human rights, free expression, the en- matter of years without any ability to around the world, information that we vironment, and HIV/AIDS sufferers. present the defense. And unfortu- benefit from. Other people to have been declared nately, that is the situation that Wu The concept of censorship of the honorary citizens of Paris include In- Lihong found himself in. media can be so strange to us here in grid Betancourt, a Colombian politi- An outbreak of disease, government America that we often don’t realize cian with French citizenship currently corruption, public safety concerns, to that journalism can cost one his or her a hostage of FARC guerillas, and Bur- me these are stories that the press freedom or even their life, as we have mese opposition leader Aung San Suu should be reporting. Indeed, in terms of seen in Russia and indeed in China. So Kyi. the interests of the Chinese people, let’s go to some of these profiles. Next I would like to profile Shi Tao. these are stories the Chinese people I would like to start the profiles to- The Chinese Government often uses need to know. These are the stories night with the leading activist named vaguely worded laws to detain journal- that the public has the right to know Hu Jia who called for greater attention ists, dissidents and others in the peace- about, and the press has an obligation to human rights around the Olympics ful exercise of their right of free ex- to report. Articles like these were ex- and was arrested on January 30 of this pression, including those arrested for actly what the framers of our Constitu- year according to Human Rights the legitimate use of the Internet. This tion had in mind when they drafted the Watch. Press Freedom—and Hu is pic- is despite the fact that the right to First Amendment. This is exactly what tured to my right—and human rights freedom of expression is protected in Thomas Jefferson said and had in mind organizations are concerned that Hu is China’s constitution. when he said that ‘‘no government being prosecuted simply for exercising One of the many unfortunate exam- ought to be without censors,’’ in his his rights to freedom of opinion and ex- ples of this practice is the continued case he was meaning critics, ‘‘and pression. At issue is an open letter that imprisonment of Shi Tao—his photo- where the press is free, no one ever he co-authored calling for the inter- graph exhibited here—a journalist and will.’’ national community to look beyond poet imprisoned solely for exercising The Chinese Government is not cen- the veneer put in place in Beijing for his right to freedom of expression and soring the press out of national secu- the Olympics and to seriously examine his right to seek, receive and impart rity concerns, but instead to shield the extent to which China had fulfilled information. itself from what a free press might un- the promises it made to improve Shi, the former editorial director at cover about corruption, inefficiency, human rights in advance of the games. the Changsha-based newspaper Dangdai human rights abuses, environmental Three months after publication of Shang Bao, was detained near his home issues, health problems or any other af- this letter, Hu was arrested at his in Taiyuan in the Shanxi province. In flictions that might accompany au- home. On April 3, 2008, he was sen- April 2004, Mr. Tao sent an e-mail from thoritarian rule. tenced to 3 years’ imprisonment for his Yahoo account to a U.S.-based pro- China’s censorship and intimidation ‘‘incitement to subvert state power,’’ a democracy website in which he summa- of media are not limited to Chinese charge regularly leveled against activ- rized a government order directing journalists. Freedom House has also ists and dissidents. media organizations in China to down- highlighted the convictions of two Chi- Reporters Without Borders has re- play the upcoming 15th anniversary of nese journalists working for the Bei- ported that Chinese authorities have the Tiananmen crackdown. jing bureau of the New York Times and prevented Hu from appealing his sen- In the anonymous e-mail sent several Ching Cheong, a correspondent for tence. One of his lawyers, Li Fangping, months before his arrest, Shi tran- Singapore’s Straits Times in China. was refused permission to see him 10 scribed his notes from the local propa- Their convictions may have been in- days after the sentence was handed ganda department instructions to the tended to intimidate foreign cor- down. The authorities said he was un- newspaper which included directives on respondents and newspapers. According dergoing a ‘‘medical examination’’ coverage of the Falun Gong and the up- to Reporters Sans Frontieres, there prior to entering prison. He was again coming 15th anniversary of the mili- were at least 25 incidents of arrests, refused permission to see him on a tary crackdown on demonstrators at threats or assaults against members of later date on the grounds that the Tiananmen Square. The official Xinhua the foreign press in 2006 alone. deadline for filing the appeal had al- News Agency reported that the Na- So not only is the government in ready expired. tional Administration for the Protec- China jailing journalists to keep infor- According to Reporters Without Bor- tion of State Secrets later certified the mation from its own people, but it is ders, Li wanted to give him official contents of the e-mail as classified, also seeking to censor information to documents related to his appeal which later certified them as classified. the rest of the world. he urgently needed for him to sign. But With this understanding of how and the guards refused without giving any b 2115 why the Chinese Government has reason. Hu has not been allowed to On the basis of this e-mail, police ar- sought to jail journalists, I think it is take any telephone calls, and his fam- rested Shi 6 months later in November important now to profile some of the ily is very worried about the state of of 2004, charging him with ‘‘illegally most egregious cases. The reporters in- his health. The plight of Hu has been providing state secrets to foreign enti- volved here are true profiles in cour- recognized by leaders around the world. ties,’’ as if Chinese efforts to downplay age. These journalists knew the con- Earlier this year, it was reported then or fail to report on Tiananmen were sequences of their writings in advance when our Secretary of State, somehow a state secret. On April 27, of their publication. And yet these Chi- Condoleezza Rice, met with President 2005 the Changsha Intermediate Peo- nese journalists believe so strongly Hu Jintao and Prime Minister Wen ple’s Court found Shi guilty and sen- that all citizens deserve access to in- Jiabao in Beijing, she raised human tenced him to a 10-year prison term in formation, that they are willing to put rights issues and voiced concern about June. their freedom on the line to better in- the situation of political prisoners of In June, the Hunan Province High form the public. These journalists Hu and Shi Tao, whom I will speak People’s Court rejected his appeal ought to be commended for their work, about next. The following day, Chinese without granting a hearing. Court doc- not jailed. And that is what we are foreign ministry spokesman Liu uments in the case revealed that Yahoo doing here tonight. We are saying Jianchao insisted that Hu was being had supplied information to Chinese ‘‘thank you’’ to all the brave Chinese detained legally. authorities that helped them identify

VerDate Mar 15 2010 15:08 Nov 08, 2010 Jkt 069102 PO 00000 Frm 00154 Fmt 0688 Sfmt 0634 E:\BR08\H08MY8.005 H08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD 8298 CONGRESSIONAL RECORD—HOUSE, Vol. 154, Pt. 6 May 8, 2008 Shi as the sender of the e-mail. In No- entitled Ziyou Bao (Freedom Report). because of its prominence China sets vember of 2005 CPJ honored Shi with They distributed 300 copies of the pam- an example, for good or for bad, in this its annual Internation Press Freedom phlet in the southern Chinese City of case, regrettably, for ill. Due to tech- Award for his courage and defending Fuzhou, Fujian province, in September, nological advancements and the efforts the ideals of free expression. 1982. of overseas activists, the Chinese gov- On June 4, 2007 the 18th anniversary The following July, they were ar- ernment attempt to suppress informa- of Tiananmen Square, Shi received an rested and accused of making contact tion has become more difficult, but additional honor, the Golden Pen of with Taiwanese spy groups and pub- that has not stopped the government’s Freedom Award. The award is the an- lishing a counterrevolutionary pam- efforts to censor online information. nual press freedom prize from the phlet. According to government official Many have referred to Internet re- World Association of Newspapers, records of the case, the men used strictions in China as the ‘‘Great Fire- which is based in Paris and is the glob- ‘‘propaganda and incitement to encour- wall of China.’’ The government em- al organization for the newspaper in- age the overthrow of the people’s ploys extensive surveillance and fil- dustry. It has awarded the Golden Pen democratic dictatorship and the social- tering systems to prevent Internet annually since 1961. ist system.’’ users from accessing material that the Shi also was presented with PEN New In August, 1983, Chen was sentenced government considers obscene, harmful England’s Vasyl Stus Award in 2006. to life in prison and Lin was sentenced to national unity or politically subver- The award is presented to a writer who to death with reprieve. Chen Biling was sive. has been persecuted for the peaceful sentenced to death and later executed. In May of 2007 Reporters Without expression of his or her views and Their case is so old, and with the Borders launched a Web site in Chi- whose courage in the face of censorship lack of an independent and open media, nese, and it was blocked within hours and oppression has been exemplary. we have had a hard time finding out of going live. Additionally, all IP ad- This award is named after the poet, more information about Chen Renjie dresses linked to a Web site deemed un- Vasyl Stus, who became a leading voice and Lin. However, I would be remiss if desirable are blocked without warning. of his generation and who was also the I did not pay special attention to high- As the web has become a new forum last Ukranian writer to die in the So- light these two reporters who have en- to distribute information, the Chinese viet Gulag. Unfortunately, all of these dured more time in jail, due to their ef- government continues to create new awards are presented in absentia due to fort to share information, than any laws to suppress the free flow of infor- Mr. Shi’s continued incarceration. His other journalist today. mation on the Internet. In the 5 years The last topic I want to focus on to- mother accepted the Golden Pen of after China first allowed private Inter- night is Internet censorship. According Freedom award from WAN on his be- net accounts in 1995, it has issued more half in June of last year. to Freedom House, China is the world’s than 60 sets of regulations to tighten At the awards ceremony she ex- second largest population of Internet its control of online content. pressed what the award meant to both users after the United States, with an These regulations continue today. In her and her son when she stated, ‘‘In estimated 210 million people online, or 2005 the government introduced new China, he was taken as a criminal, but just under 16 percent of the country’s regulations that bar Web sites from today WAN, made up of over 100 news- population. distributing information that violates paper organizations, awards him the However, access to China, to the Golden Pen of Freedom. It is not only Internet in China, is not the same as Chinese constitutional provisions, en- an honor but also a huge comfort to access to the Internet here in America. dangers national security, encourages Shi Tao. Freedom House’s 2008 press freedom illegal strikes or promotes unrecog- ‘‘It proves that my son is indeed in- survey reported that last year in China nized religious groups. In March of 2007 nocent. He has only done what a coura- was marked by additional Internet re- the Ministry of Culture and the Min- geous journalist should do. That is why strictions, as well as the jailing of istry of Information Industries banned he has got the support and the sym- more online journalists and bloggers. the opening of new Internet cafes, pathy from his colleagues all over the According to their findings in 2007, at 113,000 were in existence at the time. world who uphold justice. least nine additional journalists and Many times Internet censorship is ‘‘Here and now, I am able to stand on online writers were detained during the used as a political tool. Internet cen- the stage on behalf of my son.’’ year for information they had pub- sorship in China increased prior to and What an arduous journey it has been lished on the Internet, particularly on during the 17th Party Congress in Octo- to tell you the truth. I can’t believe it U.S.-based independent Chinese news ber of last year, during which the party is true, and even the best human lan- Web sites. In China, Web sites that leadership for the next 5 years was en- guage in the world cannot express the have not established or not been estab- dorsed. Between April and September, gratitude from the mother and son. lished by an official news outlet such access to over 18,000 Web sites was It’s good to know that awards like as a newspaper or broadcaster are for- blocked. these help provide at least a little com- bidden from gathering or editing their The Committee to Protect Journal- fort for journalists like Shi. But, more own news or commentary. ists reported that in September of 2007, importantly, these awards should raise Legally, they can only reproduce ma- security agencies in several regions or- awareness surrounding press freedom terial that has passed through sensors dered Internet data centers, which host abuses around the world. Mr. Shi is at approved media organizations. As we large numbers of Web sites and blogs, clearly deserving of all these accolades. have mentioned tonight, all media in to suspend their service, or disable The Chinese people and citizens around China are government controlled. interactive features such as bulletin the world are thankful for his dedica- China is not the only country to boards and comment sections during tion to true journalism. manage public opinion by controlling the Congress’ meeting. Next I am going to speak about two the Internet. As of 2007, CPJ had docu- In an apparent effort to overcome dif- dedicated Chinese journalists who have mented Internet censorship in 22 coun- ficulties monitoring audio-visual con- been detained longer than any journal- tries worldwide, but China was first to tent with automated filtering tech- ists in the world today, Chen Renjie launch a comprehensive program to nology, the government issued a regu- and Lin Youping. Twenty-four years censor online speech and to monitor e- lation requiring Web sites with audio after their imprisonment in the early mail and text messaging. Its censorship visual context to apply for permits. I days of China’s economic reform, Chen program is so expansive and tech- guess that would pretty well put Renjie and Lin Youping have been in nically sophisticated that countries YouTube and other like Web sites out prison longer than any journalists in such as Vietnam, Zimbabwe, and Thai- of business. CPJ’s worldwide census. land have adopted its practices. The regulation, which affects ap- The two men, along with Chen This gets back to what I have re- proximately 60,000 sites in China, also Biling, wrote and published a pamphlet ferred to earlier tonight, the fact that banned audio-visual content deemed to

VerDate Mar 15 2010 15:08 Nov 08, 2010 Jkt 069102 PO 00000 Frm 00155 Fmt 0688 Sfmt 0634 E:\BR08\H08MY8.005 H08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD May 8, 2008 CONGRESSIONAL RECORD—HOUSE, Vol. 154, Pt. 6 8299 fall into vaguely defined categories portunity to move forward and make ADJOURNMENT such as opposing the principles of the progress, and we are disappointed that Mr. SCHIFF. Mr. Speaker, I move People’s Republic of China constitu- we have not seen that progress that the that the House do now adjourn. tion, harming national unity, contrib- Chinese government representative The motion was agreed to; accord- uting to ethnic divisions or disrupting would make, and, yet, we push forward. ingly (at 9 o’clock and 28 minutes social harmony. Tonight we think about those jour- p.m.), under its previous order, the So if there were entrepreneurs who nalists, some held longer than any oth- House adjourned until Monday, May 12, wanted to start a Chinese version of ers in China, and we urge the Chinese 2008, at 2 p.m. YouTube, unless they register, unless government to step forward to recog- f YouTube registers, that would be pro- nize the benefits to China itself of a hibited. Indeed the content on those free press and free media, to free jour- OATH FOR ACCESS TO CLASSIFIED sites would be strictly scrutinized by nalists who are imprisoned for doing INFORMATION the Chinese government. According to work important to the Chinese people. Under clause 13 of rule XXIII, the fol- Freedom House, in some instances re- We hope that these efforts will be un- lowing Members executed the oath for strictions were imposed on a local dertaken soon, that some of the jour- access to classified information: level, after bloggers supported a pro- nalists that we profiled here tonight Neil Abercrombie, Gary L. Ackerman, Rob- test against construction of a chemical will be released back into the warmth ert B. Aderholt, W. Todd Akin, Rodney Alex- factory. of their own families and their own ander, Thomas H. Allen, Jason Altmire, Rob- ert E. Andrews, Michael A. Arcuri, Joe Baca, Near the southern City of Xiamen, homes, whether they are in China or the local government adopted meas- Michele Bachmann, Spencer Bachus, Brian Eritrea or in Cuba or in so many parts Baird, Richard H. Baker, Tammy Baldwin, J. ures requiring Internet users to provide of the world. That is our fond hope and their real names when posting material Gresham Barrett, John Barrow, Roscoe G. desire and the raison d’etre of our cau- Bartlett, Joe Barton, Melissa L. Bean, Xa- on more than 100,000 Web sites reg- cus on freedom of the press. vier Becerra, Shelley Berkley, Howard L. istered in the city. The Chinese govern- Berman, Marion Berry, Judy Biggert, Brian f ment demands that individual service P. Bilbray, Gus M. Bilirakis, Rob Bishop, providers monitor content. These pro- LEAVE OF ABSENCE Sanford D. Bishop, Jr., Timothy H. Bishop, viders filter searches, block Web sites, Marsha Blackburn, Earl Blumenauer, Roy By unanimous consent, leave of ab- Blunt, John A. Boehner, Jo Bonner, Mary delete content and monitor e-mail traf- sence was granted to: fic. Bono, John Boozman, Madeleine Z. Bordallo, Mr. COHEN (at the request of Mr. The Chinese language search engines Dan Boren, Leonard L. Boswell, Rick Bou- HOYER) for today on account of attend- cher, Charles W. Boustany, Jr., Allen Boyd, of many U.S. firms filter search results ing funeral. Nancy E. Boyda, Kevin Brady, Robert A. and restrict access to information Ms. MCCOLLUM of Minnesota (at the Brady, Bruce L. Braley, Paul C. Broun, about topics deemed sensitive by the Corrine Brown, Henry E. Brown, Jr., Ginny request of Mr. HOYER) for today from government. These include searches Brown-Waite, Vern Buchanan, Michael C. such as Falun Gong, Tibetan independ- 12:15 p.m. to 2:30 p.m. Burgess, Dan Burton, G.K. Butterfield, Steve ence, and human rights. Mr. CAMPBELL of California (at the Buyer, U.S. filters have to adopt certain re- request of Mr. BOEHNER) for today on Ken Calvert, Dave Camp, John Campbell, strictions. U.S. sites, like YouTube and account of illness. Chris Cannon, Eric Cantor, Shelley Moore Capito, Lois Capps, Michael E. Capuano, f others, are subject to the same scru- Dennis A. Cardoza, Russ Carnahan, Chris- tiny. In 2007, more than 20 companies, SPECIAL ORDERS GRANTED topher P. Carney, Andre´ Carson, Julia Car- some American, were forced to sign a son, John R. Carter, Michael N. Castle, self-disciplined pact which forces them By unanimous consent, permission to Kathy Castor, Donald J. Cazayoux, Jr., Steve to censor the content to blogs they address the House, following the legis- Chabot, Ben Chandler, Donna M. host in China as bloggers to provide lative program and any special orders Christensen, Yvette D. Clarke, Wm. Lacy their real identity and to delete post- heretofore entered, was granted to: Clay, Emanuel Cleaver, James E. Clyburn, ings considered illegal and unhealthy. (The following Members (at the re- Howard Coble, Steve Cohen, Tom Cole, K. Despite all this discouraging news quest of Mr. SHERMAN) to revise and ex- Michael Conaway, John Conyers, Jr., Jim tend their remarks and include extra- Cooper, Jim Costa, Jerry F. Costello, Joe there is a silver lining, though, the Courtney, Robert E. (Bud) Cramer, Jr., government’s efforts are not foolproof. neous material:) Ander Crenshaw, Joseph Crowley, Barbara Brave and determined bloggers contin- Ms. WOOLSEY, for 5 minutes, today. Cubin, Henry Cuellar, John Abney ually pop up, change addresses, hide be- Mr. GENE GREEN of Texas, for 5 min- Culberson, Elijah E. Cummings, Artur Davis, hind proxy servers, and use a range of utes, today. Danny K. Davis, David Davis, Geoff Davis, Jo tactics to side-step government censor- Mr. DEFAZIO, for 5 minutes, today. Ann Davis, Lincoln Davis, Susan A. Davis, ship and spread good information to Mr. RYAN of Ohio, for 5 minutes, Tom Davis, Nathan Deal, Peter A. DeFazio, the Chinese public. today. Diana DeGette, William D. Delahunt, Rosa L. DeLauro, Charles W. Dent, Lincoln Diaz- But it’s our hope that these bloggers (The following Members (at the re- Balart, and our journalists someday will not quest of Mr. TERRY) to revise and ex- Mario Diaz-Balart, Norman D. Dicks, John have to use these extreme measures. tend their remarks and include extra- D. Dingell, Lloyd Doggett, Joe Donnelly, We would like to see China reconsider neous material:) John T. Doolittle, Michael F. Doyle, Thelma its regulation and censorship of the Mr. POE, for 5 minutes, May 15. D. Drake, David Dreier, John J. Duncan, Jr., media. As we mentioned at the outset Mr. JONES of North Carolina, for 5 Chet Edwards, Vernon J. Ehlers, Keith tonight, press freedom provides a valu- minutes, May 15. Ellison, Brad Ellsworth, Rahm Emanuel, Jo Ann Emerson, Eliot L. Engel, Phil English, able, economic and social benefit that Mr. KELLER of Florida, for 5 minutes, Anna G. Eshoo, Bob Etheridge, Terry Ever- is in China’s best interest to ensure May 14. ett, Eni F.H. Faleomavaega, Mary Fallin, free and independent media. Mr. GOHMERT, for 5 minutes, May 14. Sam Farr, Chaka Fattah, Tom Feeney, Mike We in this country have a great ad- f Ferguson, Bob Filner, Jeff Flake, J. Randy miration for the Chinese people. They Forbes, Jeff Fortenberry, Luis G. Fortun˜ o, are extraordinarily talented, gifted, re- SENATE BILL REFERRED Vito Fossella, Bill Foster, Virginia Foxx, sourceful people with a great future A bill of the Senate of the following Barney Frank, Trent Franks, Rodney P. ahead of them. It’s our sincere view title was taken from the Speaker’s Frelinghuysen, Elton Gallegly, Scott Gar- that we do no service to our relation- rett, Jim Gerlach, Gabrielle Giffords, Wayne table and, under the rule, referred as T. Gilchrest, Kirsten E. Gillibrand, Paul E. ship with China not to encourage in follows: Gillmor, Phil Gingrey, Louie Gohmert, the most forceful way freedom of the S. Con. Res. 72. Concurrent resolution sup- Charles A. Gonzalez, Virgil H. Goode, Jr., press in that country. porting the goals and ideals of the Inter- Bob Goodlatte, Bart Gordon, Kay Granger, We hope, many of us, that the Olym- national Year of Sanitation, the Committee Sam Graves, Al Green, Gene Green, Rau´ l M. pic Games would give China that op- on Foreign Affairs. Grijalva, Luis V. Gutierrez, John J. Hall,

VerDate Mar 15 2010 15:08 Nov 08, 2010 Jkt 069102 PO 00000 Frm 00156 Fmt 0688 Sfmt 0634 E:\BR08\H08MY8.005 H08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD 8300 CONGRESSIONAL RECORD—HOUSE, Vol. 154, Pt. 6 May 8, 2008 Ralph M. Hall, Phil Hare, Jane Harman, J. Wilkins Myrick, Jerrold Nadler, Grace F. Timothy J. Walz, Zach Wamp, Debbie Dennis Hastert, Alcee L. Hastings, Doc Napolitano, Richard E. Neal, Randy Wasserman Schultz, Maxine Waters, Diane Hastings, Robin Hayes, Dean Heller, Jeb Neugebauer, Eleanor Holmes Norton, Charlie E. Watson, Melvin L. Watt, Henry A. Wax- Hensarling, Wally Herger, Stephanie Norwood, Devin Nunes, James L. Oberstar, man, Anthony D. Weiner, Peter Welch, Dave Herseth, Brian Higgins, Baron P. Hill, Mau- David R. Obey, John W. Olver, Solomon P. Weldon, Jerry Weller, Lynn A. Westmore- rice D. Hinchey, Ruben Hinojosa, Mazie K. Ortiz, Frank Pallone, Jr., Bill Pascrell, Jr., land, Robert Wexler, Ed Whitfield, Roger F. Hirono, David L. Hobson, Paul W. Hodes, Ed Pastor, Ron Paul, Donald M. Payne, Wicker, Charles A. Wilson, Heather Wilson, Peter Hoekstra, Tim Holden, Rush D. Holt, Stevan Pearce, Nancy Pelosi, Mike Pence, Joe Wilson, Robert J. Wittman, Frank R. Michael M. Honda, Darlene Hooley, Steny H. Ed Perlmutter, Collin C. Peterson, John E. Wolf, Lynn C. Woolsey, David Wu, Albert Hoyer, Kenny C. Hulshof, Duncan Hunter, Peterson, Thomas E. Petri, Charles W. Russell Wynn, John A. Yarmuth, C.W. Bill Bob Inglis, Jay Inslee, Steve Israel, Darrell ‘‘Chip’’ Pickering, Joseph R. Pitts, Todd Young, Don Young. E. Issa, Jesse L. Jackson, Jr., Sheila Jack- Russell Platts, Ted Poe, Earl Pomeroy, Jon son-Lee, William J. Jefferson, Bobby Jindal, C. Porter, David E. Price, Tom Price, Debo- f Eddie Bernice Johnson, Henry C. ‘‘Hank’’ rah Pryce, Adam H. Putnam, George Radan- Johnson, Jr., Sam Johnson, Timothy V. ovich, NOTICE OF PROPOSED Johnson, Stephanie Tubbs Jones, Walter B. Nick J. Rahall II, Jim Ramstad, Charles B. RULEMAKING Jones, Jim Jordan, Steve Kagen, Paul E. Rangel, Ralph Regula, Dennis R. Rehberg, Kanjorski, Marcy Kaptur, Ric Keller, Pat- David G. Reichert, Rick Renzi, Silvestre U.S. CONGRESS, rick J. Kennedy, Dale E. Kildee, Carolyn C. Reyes, Thomas M. Reynolds, Laura Richard- OFFICE OF COMPLIANCE, Kilpatrick, Ron Kind, Peter T. King, Steve son, Ciro D. Rodriguez, Harold Rogers, Mike Washington, DC, April 16, 2008. King, Jack Kingston, Mark Steven Kirk, Ron Rogers (AL), Mike Rogers (MI), Dana Rohr- Hon. NANCY PELOSI, Klein, John Kline, Joe Knollenberg, abacher, Peter J. Roskam, Ileana Ros- Speaker, House of Representatives, John R. ‘‘Randy’’ Kuhl, Jr., Ray LaHood, Lehtinen, Mike Ross, Steven R. Rothman, Washington, DC. Doug Lamborn, Nick Lampson, James R. Lucille Roybal-Allard, Edward R. Royce, DEAR MADAM SPEAKER: Section 304(b)(1) of Langevin, Tom Lantos, Rick Larsen, John B. C.A. Dutch Ruppersberger, Bobby L. Rush, the Congressional Accountability Act of 1995 Larson, Tom Latham, Steven C. LaTourette, Paul Ryan, Tim Ryan, John T. Salazar, Bill (CAA), 2 U.S.C. 1384(b)(1), requires that, with Robert E. Latta, Barbara Lee, Sander M. Sali, Linda T. Sa´ nchez, Loretta Sanchez, regard to the initial proposal of substantive Levin, Jerry Lewis, John Lewis, Ron Lewis, John P. Sarbanes, Jim Saxton, Steve regulations under the CAA, the Board ‘‘shall John Linder, Daniel Lipinski, Frank A. Scalise, Janice D. Schakowsky, Adam B. publish a general notice of proposed rule- LoBiondo, David Loebsack, Zoe Lofgren, Schiff, Jean Schmidt, Allyson Y. Schwartz, making’’ and ‘‘shall transmit such notice to Nita M. Lowey, Frank D. Lucas, Daniel E. David Scott, Robert C. ‘‘Bobby’’ Scott, F. the Speaker of the House of Representatives Lungren, Stephen F. Lynch, Carolyn McCar- James Sensenbrenner, Jr., Jose´ E. Serrano, and the President Pro Tempore of the Senate thy, Kevin McCarthy, Michael T. McCaul, Pete Sessions, Joe Sestak, John B. Shadegg, for publication in the Congressional Record Betty McCollum, Thaddeus G. McCotter, Jim Christopher Shays, Carol Shea-Porter, Brad on the first day on which both Houses are in McCrery, James P. McGovern, Patrick T. Sherman, John Shimkus, Heath Shuler, Bill session following such transmittal.’’ McHenry, John M. McHugh, Mike McIntyre, Shuster, The Board of Directors of the Office of Howard P. ‘‘Buck’’ McKeon, Cathy McMorris Michael K. Simpson, Albio Sires, Ike Skel- Compliance is transmitting herewith the en- Rodgers, Jerry McNerney, Michael R. ton, Louise McIntosh Slaughter, Adam closed Notice of Proposed Rulemaking. The McNulty, Connie Mack, Tim Mahoney, Caro- Smith, Adrian Smith, Christopher H. Smith, Board requests that the accompanying No- lyn B. Maloney, Donald A. Manzullo, Kenny Lamar Smith, Vic Snyder, Hilda L. Solis, tice be published in both the House and Sen- Marchant, Edward J. Markey, Jim Marshall, Mark E. Souder, Zachary T. Space, John M. ate versions of the Congressional Record on Jim Matheson, Doris O. Matsui, Martin T. Spratt, Jr., Jackie Speier, Cliff Stearns, Bart the first day on which both Houses are in Meehan, Kendrick B. Meek, Gregory W. Stupak, John Sullivan, Betty Sutton, Thom- session following receipt of this transmittal. Meeks, as G. Tancredo, John S. Tanner, Ellen O. Any inquiries regarding the accompanying Charlie Melancon, John L. Mica, Michael Tauscher, Gene Taylor, Lee Terry, Bennie G. Notice should be addressed to Tamara E. H. Michaud, Juanita Millender-McDonald, Thompson, Mike Thompson, Mac Thorn- Chrisler, Executive Director of the Office of Brad Miller, Candice S. Miller, Gary G. Mil- berry, Todd Tiahrt, Patrick J. Tiberi, John Compliance, 110 2nd Street, SE., Room LA– ler, Jeff Miller, Harry E. Mitchell, Alan B. F. Tierney, Edolphus Towns, Niki Tsongas, 200, Washington, DC 20540; 202–724–9250, TDD Mollohan, Dennis Moore, Gwen Moore, Michael R. Turner, Mark Udall, Tom Udall, 202–426–1912, [email protected]. James P. Moran, Jerry Moran, Christopher Fred Upton, Chris Van Hollen, Sincerely, S. Murphy, Patrick J. Murphy, Tim Murphy, Nydia M. Vela´ zquez, Peter J. Visclosky, SUSAN S. ROBFOGEL, John P. Murtha, Marilyn N. Musgrave, Sue Tim Walberg, Greg Walden, James T. Walsh, Chair, Board of Directors.

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VerDate Mar 15 2010 15:08 Nov 08, 2010 Jkt 069102 PO 00000 Frm 00219 Fmt 0688 Sfmt 0634 E:\BR08\H08MY8.005 H08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD Insert offset folio D64 here EH08MY08.062 May 8, 2008 CONGRESSIONAL RECORD—HOUSE, Vol. 154, Pt. 6 8363 EXECUTIVE COMMUNICATIONS, for the District of Columbia, transmitting 6497. A letter from the Chairman, National ETC. the Agency’s Fiscal Year 2007 annual report Endowment for the Arts, transmitting the prepared in accordance with Section 203 of Endowment’s report for Fiscal Year 2007, in Under clause 8 of rule XII, executive the Notification and Federal Employee Anti- accordance with Title II of the Notification communications were taken from the discrimination and Retaliation Act of 2002, and Federal Employee Antidiscrimination Speaker’s table and referred as follows: Pub. L. 107-174; to the Committee on Over- and Retaliation Act of 2002; to the Com- 6474. A letter from the Director, Regu- sight and Government Reform. mittee on Oversight and Government Re- latory Management Division, Environmental 6484. A letter from the Director, Office of form. Protection Agency, transmitting the Agen- Economic Impact and Diversity, Department 6498. A letter from the Commissioner, So- cy’s final rule — 1-Methylcyclopropene; of Energy, transmitting the Department’s cial Security Administration, transmitting Amendment to an Exemption from the Re- annual report for Fiscal Year 2007, prepared notification of the details of a public-private quirement of a Tolerance [EPA-HQ-OPP- in accordance with Section 203 of the Notifi- competition to be initiated by the Adminis- 2007-0433; FRL-8357-5] received April 8, 2008, cation and Federal Employee Antidiscrimi- tration, pursuant to Public Law 110-81, sec- pursuant to 5 U.S.C. 801(a)(1)(A); to the Com- nation and Retaliation Act of 2002 (No FEAR tion 327; to the Committee on Oversight and mittee on Agriculture. Act), Public Law 107-174; to the Committee Government Reform. 6475. A letter from the Secretary of the on Oversight and Government Reform. 6499. A letter from the Assistant Adminis- Army, Department of Defense, transmitting 6485. A letter from the White House Liai- trator, Bureau for Legislative and Public Af- notification that the Average Procurement son, Department of Health and Human Serv- fairs, U.S. Agency for International Develop- Unit Cost (APUC) metric for the Javelin Ad- ices, transmitting a report pursuant to the ment, transmitting a report pursuant to the vanced Anti-Tank Missile has exceeded the Federal Vacancies Reform Act of 1998; to the Federal Vacancies Reform Act of 1998; to the 15 percent significant cost growth threshold, Committee on Oversight and Government Committee on Oversight and Government pursuant to 10 U.S.C. 2433; to the Committee Reform. Reform. on Armed Services. 6486. A letter from the White House Liai- 6500. A communication from the President 6476. A letter from the Acting General son, Department of Health and Human Serv- of the United States, transmitting an Agree- Counsel, Department of Defense, transmit- ices, transmitting a report pursuant to the ment between the United States of America ting a copy of legislative proposals as part of Federal Vacancies Reform Act of 1998; to the and the Czech Republic on Social Security, the National Defense Authorization Bill for Committee on Oversight and Government with a principal agreement and an adminis- Fiscal Year 2009; to the Committee on Armed Reform. trative arrangement, both signed in Prague Services. 6487. A letter from the White House Liai- on September 7, 2007, pursuant to 42 U.S.C. 6477. A letter from the Comptroller, De- son, Department of Health and Human Serv- 433(e)(1); (H. Doc. No. 110–110); to the Com- partment of Defense, transmitting the De- ices, transmitting a report pursuant to the mittee on Ways and Means and ordered to be partment’s quarterly report as of March 31, Federal Vacancies Reform Act of 1998; to the printed. 2008, entitled, ‘‘Acceptance of contributions Committee on Oversight and Government 6501. A letter from the Chair of the Board for defense programs, projects and activities; Reform. of Directors, Office of Compliance, transmit- Defense Cooperation Account,’’ pursuant to 6488. A letter from the White House Liai- ting notice of proposed procedural rule- 10 U.S.C. 2608; to the Committee on Armed son, Department of Justice, transmitting a making regulations under Section 304(b)(1) of Services. report pursuant to the Federal Vacancies Re- the Congressional Accountability Act of 1995 6478. A letter from the Director, Regu- form Act of 1998; to the Committee on Over- for publication in the Congressional Record, latory Management Division, Environmental sight and Government Reform. pursuant to 2 U.S.C. 1384(b)(1); jointly to the Protection Agency, transmitting the Agen- 6489. A letter from the Chairman, U.S. Pa- Committees on Education and Labor and cy’s final rule — Approval and Promulgation role Commission, Department of Justice, House Administration. of Implementation Plans; State of Iowa transmitting a copy of the annual report in [EPA-R07-OAR-2008-0241; FRL-8533-1] re- f compliance with the Government in the Sun- ceived April 8, 2008, pursuant to 5 U.S.C. shine Act for the calendar year 2007, pursu- REPORTS OF COMMITTEES ON 801(a)(1)(A); to the Committee on Energy and ant to 5 U.S.C. 552b(j); to the Committee on Commerce. PUBLIC BILLS AND RESOLUTIONS Oversight and Government Reform. 6479. A letter from the Director, Regu- Under clause 2 of rule XIII, reports of latory Management Division, Environmental 6490. A letter from the Attorney Advisor, Department of Transportation, transmitting committees were delivered to the clerk Protection Agency, transmitting the Agen- for printing and reference to the proper cy’s final rule — Standards of Performance a report pursuant to the Federal Vacancies for Petroleum Refineries [EPA-HQ-OAR-2007- Reform Act of 1998; to the Committee on calendar, as follows: 0011; FRL-8563-2] (RIN: 2060-AN72) received Oversight and Government Reform. Mr. GEORGE MILLER of California: Com- April 31, 2008, pursuant to 5 U.S.C. 6491. A letter from the White House Liai- mittee on Education and Labor. H.R. 3021. A 801(a)(1)(A); to the Committee on Energy and son, Department of the Treasury, transmit- bill to direct the Secretary of Education to Commerce. ting a report pursuant to the Federal Vacan- make grants and low-interest loans to local 6480. A letter from the Director, Regu- cies Reform Act of 1998; to the Committee on educational agencies for the construction, latory Management Division, Environmental Oversight and Government Reform. modernization, or repair of public kinder- Protection Agency, transmitting the Agen- 6492. A letter from the White House Liai- garten, elementary, and secondary edu- cy’s final rule — Approval and Promulgation son, Department of the Treasury, transmit- cational facilities, and for other purposes; of Air Quality Implementation Plans; Con- ting a report pursuant to the Federal Vacan- with an amendment (Rept. 110–623). Referred necticut; Interstate Transport of Pollution cies Reform Act of 1998; to the Committee on to the Committee of the Whole House on the [EPA-R01-OAR-2007-0452; A-1-FRL-8562-9] re- Oversight and Government Reform. State of the Union. ceived April 31, 2008, pursuant to 5 U.S.C. 6493. A letter from the White House Liai- Mr. WAXMAN: Committee on Oversight 801(a)(1)(A); to the Committee on Energy and son, Department of the Treasury, transmit- and Government Reform. H.R. 5781. A bill to Commerce. ting a report pursuant to the Federal Vacan- provide that 8 of the 12 weeks of parental 6481. A letter from the Director, Regu- cies Reform Act of 1998; to the Committee on leave made available to a Federal employee latory Management Division, Environmental Oversight and Government Reform. shall be paid leave, and for other purposes; Protection Agency, transmitting the Agen- 6494. A letter from the White House Liai- with an amendment (Rept. 110–624 Pt. 1). Or- cy’s final rule — Approval and Promulgation son, Department of the Treasury, transmit- dered to be printed. of Air Quality Implementation Plans; West ting a report pursuant to the Federal Vacan- Mr. WAXMAN: Committee on Oversight Virginia: Transportation Conformity Re- cies Reform Act of 1998; to the Committee on and Government Reform. H.R. 752. A bill to quirement [EPA-R03-OAR-2007-1146; FRL- Oversight and Government Reform. direct Federal agencies to donate excess and 8561-2] received April 31, 2008, pursuant to 5 6495. A letter from the White House Liai- surplus Federal electronic equipment, in- U.S.C. 801(a)(1)(A); to the Committee on En- son, Department of the Treasury, transmit- cluding computers, computer components, ergy and Commerce. ting a report pursuant to the Federal Vacan- printers, and fax machines, to qualifying 6482. A letter from the District of Columbia cies Reform Act of 1998; to the Committee on small towns, counties, schools, nonprofit or- Auditor, Office of the District of Columbia Oversight and Government Reform. ganizations, and libraries; with an amend- Auditor, transmitting a report entitled, 6496. A letter from the Chairperson, Na- ment (Rept. 110–625). Referred to the Com- ‘‘Performance Measurement System Needs tional Council on Disability, transmitting mittee of the Whole House on the State of Long-Term Stability and Commitment to the Council’s Annual Performance Report to the Union. Maximize Effectiveness,’’ pursuant to D.C. the President and Congress Fiscal Year 2007, DISCHARGE OF COMMITTEE Code section 47-117(d); to the Committee on as required by the Government Performance Oversight and Government Reform. and Results Act, pursuant to 31 U.S.C. 1116; Pursuant to clause 2 or rule XII the 6483. A letter from the Director, Court to the Committee on Oversight and Govern- Committee on House Administration Services and Offender Supervision Agency ment Reform. discharged from further consideration.

VerDate Mar 15 2010 15:08 Nov 08, 2010 Jkt 069102 PO 00000 Frm 00220 Fmt 0688 Sfmt 0634 E:\BR08\H08MY8.005 H08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD 8364 CONGRESSIONAL RECORD—HOUSE, Vol. 154, Pt. 6 May 8, 2008 H.R. 5781 referred to the Committee of BRADY of Pennsylvania, Mrs. CAPPS, Mr. FILNER, Mr. RAHALL, Mr. BOS- the Whole on the State of the Union. Mr. CLAY, Mr. CLEAVER, Mr. COHEN, WELL, Ms. EDDIE BERNICE JOHNSON of Mr. CONYERS, Mr. CUMMINGS, Mr. Texas, Mr. TAYLOR, Mr. WALZ of Min- f DAVIS of Illinois, Mr. DEFAZIO, Mr. nesota, Mr. CARNEY, Ms. HIRONO, Mr. PUBLIC BILLS AND RESOLUTIONS DELAHUNT, Mr. DOYLE, Mr. ELLISON, HIGGINS, Mr. BISHOP of New York, Under clause 2 of rule XII, public Mr. FARR, Mr. FATTAH, Mr. FILNER, Mr. CARNAHAN, Mr. LARSEN of Wash- Mr. FRANK of Massachusetts, Mr. ington, Mr. MICHAUD, Ms. MATSUI, bills and resolutions were introduced GRIJALVA, Mr. GUTIERREZ, Mr. HARE, Mr. HALL of New York, Mr. COHEN, and severally referred, as follows: Mr. HASTINGS of Florida, Mr. HIN- Mr. MCNERNEY, Mr. ALTMIRE, Mr. By Mr. JONES of North Carolina: CHEY, Ms. HIRONO, Mr. HONDA, Mr. CAPUANO, Mr. HOLDEN, and Mr. H.R. 5993. A bill to promote congressional JACKSON of Illinois, Ms. EDDIE BER- KAGEN): and public awareness, understanding, and po- NICE JOHNSON of Texas, Mr. KAN- H.R. 6003. A bill to reauthorize Amtrak, litical accountability of presidential signing JORSKI, Ms. KAPTUR, Mr. KENNEDY, and for other purposes; to the Committee on statements; to the Committee on the Judici- Mr. KILDEE, Ms. KILPATRICK, Mr. Transportation and Infrastructure. ary. LARSON of Connecticut, Ms. LEE, Mr. By Mr. OBERSTAR (for himself, Mr. By Mr. CONYERS (for himself and Ms. LEWIS of Georgia, Mr. LIPINSKI, Mrs. MICA, Ms. CORRINE BROWN of Florida, ZOE LOFGREN of California): LOWEY, Mr. MCDERMOTT, Mr. MCGOV- and Mr. SHUSTER): H.R. 5994. A bill to amend the Clayton Act ERN, Mr. MCNULTY, Mr. GEORGE MIL- H.R. 6004. A bill to provide for the financ- with respect to competitive and nondiscrim- LER of California, Ms. MOORE of Wis- ing of high-speed rail infrastructure, and for inatory access to the Internet; to the Com- consin, Mr. NADLER, Mrs. other purposes; to the Committee on Trans- mittee on the Judiciary. NAPOLITANO, Mr. OLVER, Mr. PAYNE, portation and Infrastructure, and in addition By Mr. RYAN of Wisconsin (for him- Mr. RAHALL, Mr. ROTHMAN, Mr. RYAN to the Committee on Ways and Means, for a self, Mr. BOEHNER, Mr. BLUNT, Mr. of Ohio, Ms. LINDA T. SA´ NCHEZ of period to be subsequently determined by the CANTOR, Mr. PUTNAM, Mr. California, Ms. SCHAKOWSKY, Mr. Speaker, in each case for consideration of HENSARLING, Mr. SENSENBRENNER, SCOTT of Virginia, Mr. SERRANO, Mr. such provisions as fall within the jurisdic- Mr. FLAKE, Mr. PENCE, Mrs. SHERMAN, Ms. SLAUGHTER, Mr. tion of the committee concerned. BLACKBURN, Mr. CAMPBELL of Cali- STARK, Mr. STUPAK, Ms. SUTTON, Mr. By Mr. BECERRA (for himself, Mr. fornia, Mr. JORDAN, Mr. BROUN of TIERNEY, Mr. TOWNS, Ms. WATSON, NUNES, Mr. RANGEL, Mr. Georgia, and Mr. MCCOTTER): Mr. WAXMAN, Mr. WEXLER, Ms. WOOL- BLUMENAUER, Mr. HONDA, and Mr. H.R. 5995. A bill to amend the Internal Rev- SEY, Mr. YARMUTH, and Ms. ROYBAL- COLE of Oklahoma): enue Code of 1986 to suspend the highway H.R. 6005. A bill to amend the Internal Rev- ALLARD): fuels taxes, to provide for a Joint Committee H.R. 6000. A bill to amend the Internal Rev- enue Code to provide for the treatment of In- on Earmark Reform, and to prohibit ear- dian tribal governments as State govern- enue Code of 1986 to impose a windfall profit marking for the remainder of the 110th Con- ments for the purposes of the Public Charity- tax on oil and natural gas (and products gress; to the Committee on Ways and Means, Private Foundation Classification; to the thereof) and to allow an income tax credit and in addition to the Committees on Rules, Committee on Ways and Means. for purchases of fuel-efficient passenger vehi- and the Budget, for a period to be subse- By Ms. BORDALLO (for herself, Mr. cles, and to allow grants for mass transit; to quently determined by the Speaker, in each ABERCROMBIE, and Mr. HAYES): the Committee on Ways and Means, and in case for consideration of such provisions as H.R. 6006. A bill to amend title 10, United addition to the Committee on Transpor- fall within the jurisdiction of the committee States Code, to authorize the Secretary of a concerned. tation and Infrastructure, for a period to be military department, and the Secretary of subsequently determined by the Speaker, in By Mr. MCCOTTER: Defense with respect to the Defense Agen- H.R. 5996. A bill to amend the Internal Rev- each case for consideration of such provi- cies, to participate in conservation banking enue Code of 1986 to allow a deduction for tu- sions as fall within the jurisdiction of the programs and in-lieu-fee mitigation pro- toring expenses for elementary and sec- committee concerned. grams; to the Committee on Armed Services. ondary school students; to the Committee on By Mr. BUYER (for himself, Mr. COLE By Ms. BORDALLO: Ways and Means. of Oklahoma, Mr. GRAVES, Mr. PICK- H.R. 6007. A bill to authorize the Secretary By Mr. BARROW: ERING, Mr. HAYES, Mr. SHIMKUS, Mr. of Transportation to establish a Port of H.R. 5997. A bill to amend title 49, United PENCE, Mr. BURTON of Indiana, Mr. Guam Improvement Enterprise Program, and States Code, to require a motor carrier, KLINE of Minnesota, Mrs. BLACKBURN, for other purposes; to the Committee on broker, or freight forwarder that collects a Mr. WAMP, Mr. YOUNG of Alaska, Mr. Armed Services, and in addition to the Com- fuel surcharge to pay an amount equal to the HOEKSTRA, Mr. SHUSTER, Mr. mittee on Transportation and Infrastruc- surcharge to the person that bears the cost MCHENRY, Mr. BARRETT of South ture, for a period to be subsequently deter- of the fuel, and for other purposes; to the Carolina, Mr. SOUDER, and Mr. SHAD- mined by the Speaker, in each case for con- Committee on Transportation and Infra- EGG): sideration of such provisions as fall within structure. H.R. 6001. A bill to rebalance the United the jurisdiction of the committee concerned. By Mr. PALLONE (for himself, Ms. States energy portfolio, to increase and uti- By Mr. BROUN of Georgia (for himself, SHEA-PORTER, Mr. ALTMIRE, Ms. lize the Nation’s domestic energy resources Mr. AKIN, Mr. BARTLETT of Maryland, BALDWIN, Mr. BRALEY of Iowa, Mrs. and supply, to strengthen energy security Mrs. MYRICK, and Mr. ISSA): CAPPS, Mr. COURTNEY, Ms. DEGETTE, and independence, and for other purposes; to H.R. 6008. A bill to amend the Illegal Immi- Ms. DELAURO, Mr. DINGELL, Mr. the Committee on Natural Resources, and in gration Reform and Immigrant Responsi- DOYLE, Mr. ELLISON, Mr. ENGEL, Ms. addition to the Committees on Energy and bility Act of 1996 to make permanent the E- ESHOO, Mr. GENE GREEN of Texas, Ms. Commerce, Ways and Means, Armed Serv- Verify program, and for other purposes; to HARMAN, Mr. HODES, Ms. HOOLEY, Mr. ices, and Science and Technology, for a pe- the Committee on the Judiciary, and in addi- INSLEE, Mr. LARSON of Connecticut, riod to be subsequently determined by the tion to the Committee on Education and Mr. MARKEY, Mr. MURPHY of Con- Speaker, in each case for consideration of Labor, for a period to be subsequently deter- necticut, Mr. PATRICK MURPHY of such provisions as fall within the jurisdic- mined by the Speaker, in each case for con- Pennsylvania, Mr. RANGEL, Mr. RUSH, tion of the committee concerned. sideration of such provisions as fall within Ms. SCHAKOWSKY, Ms. SOLIS, Mr. By Mr. GARY G. MILLER of California the jurisdiction of the committee concerned. STARK, Mr. STUPAK, Mr. TOWNS, Mr. (for himself, Mr. DREIER, Mr. By Mr. ENGLISH of Pennsylvania (for WALZ of Minnesota, Mr. WAXMAN, and MCKEON, Mrs. NAPOLITANO, and Ms. himself and Mr. ALEXANDER): Mr. WELCH of Vermont): SOLIS): H.R. 6009. A bill to leverage market forces H.R. 5998. A bill to nullify any effective- H.R. 6002. A bill to amend title 23, United to bring greater efficiency and capacity to ness of the August 17, 2007, State health offi- States Code, to prohibit the collection of domestic refineries, to bring new sources of cial letter issued by the Centers for Medicare certain tolls on existing high occupancy ve- domestic energy to market, and for other & Medicaid Services; to the Committee on hicles; to the Committee on Transportation purposes; to the Committee on Natural Re- Energy and Commerce. and Infrastructure. sources, and in addition to the Committees By Ms. HIRONO (for herself, Mr. ABER- By Mr. OBERSTAR (for himself, Mr. on Energy and Commerce, the Judiciary, CROMBIE, and Ms. ROS-LEHTINEN): MICA, Ms. CORRINE BROWN of Florida, Ways and Means, and Foreign Affairs, for a H.R. 5999. A bill to authorize appropria- Mr. SHUSTER, Mr. NADLER, Mr. period to be subsequently determined by the tions for the National Tropical Botanical COSTELLO, Mr. LIPINSKI, Mr. SIRES, Speaker, in each case for consideration of Garden, and for other purposes; to the Com- Mr. DEFAZIO, Mr. CUMMINGS, Mrs. such provisions as fall within the jurisdic- mittee on the Judiciary. NAPOLITANO, Ms. NORTON, Mrs. tion of the committee concerned. By Mr. KUCINICH (for himself, Mr. TAUSCHER, Mr. ARCURI, Mr. SPACE, By Mr. GONZALEZ (for himself and ABERCROMBIE, Mr. BERMAN, Mr. Mr. SALAZAR, Mr. BRALEY of Iowa, Mr. RODRIGUEZ):

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H.R. 6010. A bill to require the Secretary of Committee on the Judiciary, and in addition By Mr. MCDERMOTT (for himself and Defense to establish a National Trauma In- to the Committee on Education and Labor, Mr. PORTER): stitute Research Program; to the Committee for a period to be subsequently determined H. Res. 1185. A resolution expressing the on Armed Services. by the Speaker, in each case for consider- sense of the House of Representatives that By Ms. HERSETH SANDLIN (for her- ation of such provisions as fall within the ju- Congress should recognize the important self and Mr. MORAN of Kansas): risdiction of the committee concerned. contributions of Americans who serve as fos- H.R. 6011. A bill to amend the Public By Ms. ZOE LOFGREN of California ter parents and, in doing so, unselfishly open Health Service Act to facilitate emergency (for herself, Mr. THORNBERRY, Mr. their homes and family lives to children in medical services personnel training and cer- CONYERS, Mr. PENCE, Ms. LORETTA need; to the Committee on Ways and Means. tification curriculums for military veterans; SANCHEZ of California, Mr. TURNER, By Mr. SENSENBRENNER: to the Committee on Energy and Commerce. and Mr. REYES): H. Res. 1186. A resolution prohibiting the By Mr. ISRAEL: H.R. 6020. A bill to amend the Immigration use of funds in a Members’ Representational H.R. 6012. A bill to require the Comptroller and Nationality Act to protect the well- Allowance for the long-term lease of a vehi- General to conduct a study of the consolida- being of soldiers and their families, and for cle; to the Committee on House Administra- tion of the refiners, importers, producers, other purposes; to the Committee on the Ju- tion. and wholesalers of gasoline with the sellers diciary. f of such gasoline at retail; to the Committee By Mr. BROUN of Georgia: on Energy and Commerce. H.J. Res. 82. A joint resolution proposing ADDITIONAL SPONSORS By Mr. MELANCON (for himself, Mr. an amendment to the Constitution of the Under clause 7 of rule XII, sponsors MCCRERY, Mr. ALEXANDER, Mr. United States allowing castration after con- BOUSTANY, and Mr. JEFFERSON): viction for the rape of a child under 16 years were added to public bills and resolu- H.R. 6013. A bill to provide for disaster as- of age; to the Committee on the Judiciary. tions as follows: sistance for power transmission and distribu- By Mr. BROUN of Georgia: H.R. 154: Mr. SMITH of New Jersey. tion facilities, and for other purposes; to the H.J. Res. 83. A joint resolution proposing H.R. 241: Mr. INGLIS of South Carolina. Committee on Transportation and Infra- an amendment to the Constitution of the H.R. 552: Mr. BLUMENAUER, Mr. KILDEE, and structure. United States providing that the Constitu- Mr. BACHUS. By Mrs. SCHMIDT: tion does not preclude a penalty of death, in- H.R. 594: Mr. PLATTS. H.R. 6014. A bill to amend the Internal Rev- cluding when it is imposed for the rape of a H.R. 741: Mrs. CAPPS. enue Code of 1986 to allow a credit against child under 16 years of age; to the Committee H.R. 752: Mr. BLUMENAUER. tax for birthmothers whose children are on the Judiciary. H.R. 768: Mr. GARRETT of New Jersey. adopted; to the Committee on Ways and By Mr. ALEXANDER: H.R. 784: Mr. KUHL of New York. Means. H. Con. Res. 346. Concurrent resolution ex- H.R. 864: Mr. COHEN. By Mr. SESSIONS (for himself, Mr. pressing the sense of Congress that American H.R. 1022: Mr. PATRICK MURPHY of Pennsyl- FEENEY, and Mrs. BLACKBURN): oil companies should build additional refin- vania. H.R. 6015. A bill to require hospitals and ing capacity on existing refinery campuses; H.R. 1023: Ms. MCCOLLUM of Minnesota and ambulatory surgical centers to disclose to the Committee on Energy and Commerce. Mr. JEFFERSON. charge-related information and to provide By Mr. BACA: H.R. 1032: Ms. BORDALLO, Ms. HIRONO, Mr. price protection for treatments not covered H. Con. Res. 347. Concurrent resolution ex- NADLER, and Mr. TOWNS. by insurance as conditions for receiving pro- pressing the sense of Congress that the Sec- H.R. 1093: Mr. GINGREY. tection from charge-related legal actions; to retary of the Department of Health and H.R. 1142: Ms. HIRONO and Mr. NADLER. the Committee on the Judiciary, and in addi- Human Services, through the Centers for H.R. 1190: Mr. PAYNE. tion to the Committee on Energy and Com- Disease Control and Prevention and the Food H.R. 1194: Mr. ENGLISH of Pennsylvania and merce, for a period to be subsequently deter- and Drug Administration, should take action Mr. CARNAHAN. mined by the Speaker, in each case for con- to educate the public on the importance of H.R. 1222: Mr. SHULER. sideration of such provisions as fall within adequate iodine intake; to the Committee on H.R. 1223: Mr. SHULER. the jurisdiction of the committee concerned. Energy and Commerce. H.R. 1343: Mr. HULSHOF. By Mr. STUPAK: By Mr. CROWLEY (for himself, Mr. H.R. 1353: Mr. BAIRD. H.R. 6016. A bill to amend title 39, United FALEOMAVAEGA, Mr. SCHIFF, Mr. H.R. 1363: Mr. ANDREWS. States Code, to require post offices to have TOWNS, Mr. HOLT, Mr. DAVIS of Illi- H.R. 1379: Mr. STARK. running water and sanitation facilities and nois, Mr. GRIJALVA, Mr. OLVER, Mr. H.R. 1386: Mr. RUSH. prohibiting the closure of post offices based KING of New York, Mr. PITTS, Mr. H.R. 1540: Mr. LOEBSACK. on a lack of running water and sanitation fa- MCGOVERN, Mr. SMITH of New Jersey, H.R. 1552: Mr. INSLEE, Mr. KENNEDY, Mr. cilities; to the Committee on Oversight and Mr. MANZULLO, Mr. MCDERMOTT, Mrs. DAVIS of Illinois, Mr. LOEBSACK, and Ms. Government Reform. MCCARTHY of New York, Mr. HIN- NORTON. By Mr. STUPAK (for himself and Mrs. CHEY, Mr. SESTAK, Mr. HONDA, Ms. H.R. 1576: Mr. KNOLLENBERG. MILLER of Michigan): ROS-LEHTINEN, Mr. BERMAN, Mr. H.R. 1610: Ms. CASTOR, Mr. ARCURI, Mr. H.R. 6017. A bill to ameliorate the effects BLUMENAUER, Ms. MCCOLLUM of Min- MCCARTHY of California, and Mr. OBERSTAR. of harmful algal blooms in the Great Lakes nesota, and Mr. SOUDER): H.R. 1738: Mr. PLATTS. by reducing phosphorus inputs, and for other H. Res. 1181. A resolution expressing condo- H.R. 1869: Mr. POE. purposes; to the Committee on Transpor- lences and sympathy to the people of Burma H.R. 1919: Mr. RYAN of Ohio and Mr. WATT. tation and Infrastructure, and in addition to for the grave loss of life and vast destruction H.R. 2050: Mr. CARSON. the Committees on Energy and Commerce, caused by Cyclone Nargis; to the Committee H.R. 2073: Mr. FATTAH. and Natural Resources, for a period to be on Foreign Affairs. H.R. 2125: Ms. MOORE of Wisconsin. subsequently determined by the Speaker, in By Mr. FILNER: H.R. 2164: Ms. EDDIE BERNICE JOHNSON of each case for consideration of such provi- H. Res. 1182. A resolution expressing the Texas. sions as fall within the jurisdiction of the sense of the House of Representatives that H.R. 2165: Mr. ROTHMAN. committee concerned. American flags flown on Federal Govern- H.R. 2188: Mr. MEEKs of New York, Ms. By Ms. TSONGAS (for herself, Mr. ment buildings and on Federal property be NORTON, Ms. CLARKE, and Mr. GORDON. HAYES, Mr. BOOZMAN, Ms. HERSETH made in the United States; to the Committee H.R. 2221: Mr. ISRAEL and Mr. BISHOP of SANDLIN, Mr. MILLER of Florida, Ms. on the Judiciary. New York. BORDALLO, Mr. BRADY of Pennsyl- By Mr. JONES of North Carolina (for H.R. 2231: Mr. BONNER. vania, and Mr. MCGOVERN): himself and Mr. ROHRABACHER): H.R. 2244: Mr. VAN HOLLEN. H.R. 6018. A bill to amend title 10, United H. Res. 1183. A resolution amending the H.R. 2268: Mr. KUCINICH, Mr. AL GREEN of States Code, to increase loan repayment lim- Rules of the House of Representatives to ob- Texas, Mrs. LOWEY, Mrs. DAVIS of California, its for health professionals serving in the serve a moment of silence in the House on Ms. ROYBAL-ALLARD Mr. FILNER, Mr. YOUNG Armed Forces; to the Committee on Armed the first legislative day of each month for of Alaska, Mr. LEWIS of California, Mr. COO- Services. those killed or wounded in United States en- PER, Mr. CONAWAY, Mr. FALEOMAVAEGA, Mr. By Mr. UDALL of New Mexico: gagements in Iraq or Afghanistan; to the BISHOP of New York, Mr. COLE of Oklahoma, H.R. 6019. A bill to amend the Energy Em- Committee on Rules. Mr. HOLT, Ms. EDDIE BERNICE JOHNSON of ployees Occupational Illness Compensation By Mr. KING of New York: Texas, Mr. KENNEDY, Mr. LAMBORN, Mr. POE, Program Act of 2000 to grant Special Expo- H. Res. 1184. A resolution supporting the Mr. SHULER, Mr. SPACE, Mr. ROHRABACHER, sure Cohort designation to a specific group goals and ideals of the Knights of Pythias; to Mr. MCINTYRE, and Mr. HINOJOSA. of individuals from a Department of Energy the Committee on Oversight and Govern- H.R. 2303: Mr. HALL of Texas, Mr. REY- facility in Los Alamos, New Mexico; to the ment Reform. NOLDS, and Mrs. MILLER of Michigan.

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H.R. 2332: Mr. TIAHRT, Mr. KLEIN of Flor- H.R. 4449: Ms. ROS-LEHTINEN. H.R. 5841: Mr. GONZALEZ and Mr. ida, Mrs. MUSGRAVE, Mrs. MILLER of Michi- H.R. 4453: Mr. DAVIS of Illinois. CARNAHAN. gan, Mr. HELLER, Mr. SAM JOHNSON of Texas, H.R. 4900: Mr. MARIO DIAZ-BALART of Flor- H.R. 5846: Mr. CARTER. and Mr. RAMSTAD. ida, Mr. BARTON of Texas, Mr. GORDON, Mr. H.R. 5854: Ms. GINNY BROWN-WAITE of Flor- H.R. 2370: Mr. HINCHEY and Mr. WALBERG. RYAN of Wisconsin, and Mr. CHANDLER. ida. H.R. 2371: Mr. SIMPSON, Mr. GENE GREEN of H.R. 4926: Mr. MARSHALL, Ms. SCHAKOWSKY, H.R. 5857: Mr. FRELINGHUYSEN. Texas, and Mr. INSLEE. Mr. PERLMUTTER, Ms. SHEA-PORTER, Ms. LEE, H.R. 5878: Mr. GRIJALVA. H.R. 2380: Mr. SALI. Mr. REGULA, and Mr. ELLISON. H.R. 5881: Mr. STARK. H.R. 2481: Mr. PLATTS. H.R. 5129: Mr. LOEBSACK. H.R. 5886: Mr. KING of New York. H. R. 2485: Ms. SPEIER. H.R. 5136: Mrs. MALONEY of New York. H.R. 5898: Mr. ALTMIRE, Mrs. BONO MACK, H. R. 2507: Mr. GERLACH. H.R. 5174: Mr. MARKEY. Mr. SHAYS, and Mr. WHITFIELD of Kentucky. H. R. 2572: Mr. CUMMINGS. H.R. 5180: Mrs. CAPPS. H.R. 5907: Mr. DENT. H.R. 2659: Mr. KAGEN. H.R. 5223: Ms. HIRONO and Mr. H.R. 5944: Ms. GRANGER, Mr. LEWIS of Cali- H.R. 2784: Mr. DREIER. BLUMENAUER. fornia, and Mr. SOUDER. H.R. 2827: Mr. POE. H.R. 5244: Ms. GIFFORDS and Mr. WATT. H.R. 5958: Mr. AL GREEN of Texas. H.R. 2851: Mr. MURTHA, Mr. GINGREY, and H.R. 5315: Mr. MICHAUD. H.R. 5960: Mr. WOLF. Mr. CONYERS. H.R. 5352: Mr. EMANUEL. H.R. 5971: Mr. GINGREY, Mr. SOUDER, Mr. H.R. 2897: Mr. BLUMENAUER. H.R. 5442: Mr. BLUMENAUER. PLATTS, Mr. LATTA, Mr. HERGER, and Mr. H.R. 2914: Mr. WALBERG, Ms. BERKLEY, and H.R. 5446: Mr. YARMUTH. BILBRAY. Mr. BRALEY of Iowa. H.R. 5448: Ms. HIRONO and Mr. STARK. H.R. 5974: Mr. BONNER, Mr. FRELINGHUYSEN, H.R. 2933: Mr. ARCURI. H.R. 5465: Mr. WU and Mr. WALZ of Min- and Mr. DANIEL E. LUNGREN of California. H.R. 2991: Mr. CONYERS, Mr. WILSON of nesota. H.R. 5976: Mr. WALSH of New York, Mr. Ohio, Mr. SHULER, Mr. RAMSTAD, and Mr. H.R. 5466: Mrs. JONES of Ohio. HINCHEY, and Ms. SUTTON. PENCE. H.R. 5496: Mr. LINCOLN DIAZ-BALART of H.R. 5977: Mr. HOLDEN. H.R. 3021: Ms. LORETTA SANCHEZ of Cali- Florida. H.R. 5983: Ms. JACKSON-LEE of Texas. fornia, Ms. LEE, Mr. MCNERNEY, Mr. H.R. 5506: Mr. FERGUSON, Mr. GARRETT of H.R. 5984: Mr. SOUDER, Mr. FORBES, and Mr. CUMMINGS, Mr. WALZ of Minnesota, Mr. New Jersey, Mr. SAXTON, Mr. ANDREWS, Mr. SHADEGG. SCOTT of Georgia, Ms. TSONGAS, Mr. SMITH of New Jersey, Mr. PALLONE, Mr. H.J. Res. 1: Mr. BROUN of Georgia. FORTUNˆ O, Mr. WYNN, Ms. WASSERMAN ROTHMAN, Mr. PAYNE, Mr. FRELINGHUYSEN, H.J. Res. 7: Mr. BROUN of Georgia. SCHULTZ, Mr. LANGEVIN, Mr. BOYD of Florida, and Mr. HOLT. H.J. Res. 39: Mr. FOSTER. and Mr. WILSON of Ohio. H.R. 5515: Mr. ALEXANDER. H. Con. Res. 2: Mr. MCGOVERN, Mr. CROW- H.R. 3022: Ms. LEE and Mr. TOWNS. H.R. 5534: Mr. PLATTS and Ms. BALDWIN. LEY, Mr. NADLER, Mr. MEEK of Florida, Ms. H.R. 3089: Mr. GINGREY and Mr. WOLF. H.R. 5535: Mr. BOSWELL, Mr. MCDERMOTT, HARMAN, Mr. INSLEE, Mrs. MCCARTHY of New H.R. 3151: Mr. YOUNG of Alaska and Mr. Mr. LEWIS of Georgia, Mr. CAPUANO, Mr. York, Mr. CLAY, Ms. CLARKE, Mr. TOWNS, Mr. BILBRAY. MORAN of Virginia, and Mr. KENNEDY. THOMPSON of Mississippi, Mr. JOHNSON of H.R. 3202: Mr. FALEOMAVAEGA. H.R. 5547: Mr. COURTNEY and Mr. WELCH of Georgia, Mr. CLYBURN, Ms. EDDIE BERNICE H.R. 3232: Mr. PAYNE, Mr. Foster, and Mr. Vermont. JOHNSON of Texas, Mr. JACKSON of Illinois, KUHL of New York. H.R. 5549: Mr. TOWNS. Mr. WATT, Mr. SCOTT of Virginia, Mr. HOLT, H.R. 3326: Mr. BLUMENAUER and Mr. H.R. 5568: Mr. BILBRAY. Ms. KILPATRICK, Mr. CARSON, Ms. MOORE of FATTAH. H.R. 5603: Mr. SIMPSON. Wisconsin, Ms. WATSON, Mr. ELLISON, Mr. H.R. 3334: Mr. ALEXANDER, Mr. DICKS, Mr. H. R. 5604: Mr. SNYDER. CUMMINGS, Mr. CLEAVER, Mr. BISHOP of Geor- SCOTT of Virginia, and Mr. WALBERG. H.R. 5629: Ms. LORETTA SANCHEZ of Cali- gia, Ms. NORTON, Mrs. NAPOLITANO, Mr. H.R. 3374: Mr. BOUCHER. fornia. GRIJALVA, Mr. KIND, Mr. KILDEE, Mr. MAR- H. R. 3397: Ms. WATERS, Ms. WATSON, Ms. H.R. 5632: Mr. TERRY and Mr. MARKEY. KEY, Mr. BISHOP of Utah, and Mr. RAHALL. SLAUGHTER, Ms. EDDIE BERNICE JOHNSON of H.R. 5636: Mr. GRIJALVA. H. Con. Res. 40: Mr. PETERSON of Pennsyl- Texas, Mr. WATT, Mr. BUTTERFIELD, Mr. H.R. 5646: Mr. HELLER and Mr. WHITFIELD vania and Mr. SALI. JACKSON of Illinois, Mr. CLAY, Mr. MEEKs of of Kentucky. H. Con. Res. 46: Mr. FILNER. New York, Mr. DAVIS of Illinois, Mr. THOMP- H.R. 5647: Mr. ALEXANDER. H. Con. Res. 244: Mr. MARIO DIAZ-BALART of SON of Mississippi, Mr. CARSON, Mr. BRALEY H.R. 5656: Mrs. MCMORRIS RODGERS. Florida, Mr. REYNOLDS, and Mr. OLVER. of Iowa, Ms. LINDA T. SA´ NCHEZ of California, H.R. 5669: Mr. CHANDLER, Mr. NADLER, and H. Con. Res. 296: Mr. SMITH of New Jersey, Mr. CRAMER, Mr. HALL of New York, Mr. AN- Mr. RUSH. Mr. FORBES, Mr. HAYES, Mr. BILIRAKIS, Mr. DREWS, Mr. BAIRD, Mr. PRICE of North Caro- H.R. 5673: Mrs. BONO MACK. MORAN of Kansas, Mr. AKIN, and Mr. PEARCE. lina, and Ms. WOOLSEY. H.R. 5684: Mr. BROWN of South Carolina and H. Con. Res. 299: Mr. TANNER and Mr. POR- H.R. 3404: Mr. SARBANES. Ms. EDDIE BERNICE JOHNSON of Texas. TER. H.R. 3430: Mr. SHAYS. H.R. 5695: Mr. YOUNG of Alaska. H. Con. Res. 305: Ms. MCCOLLUM of Min- H.R. 3533: Mr. FATTAH. H.R. 5699: Mr. CULBERSON. nesota, Mr. FRANK of Massachusetts, and Mr. H.R. 3544: Ms. ESHOO. H.R. 5702: Mr. LEWIS of Georgia and Mr. PASTOR. H.R. 3622: Mr. REHBERG. KIND. H. Con. Res. 331: Ms. EDDIE BERNICE JOHN- H.R. 3642: Mr. WU H.R. 5714: Mr. HENSARLING, Mr. FARR, Mr. SON of Texas and Ms. GINNY BROWN-WAITE of H.R. 3652: Ms. SCHAKOWSKY. CARNAHAN, Mrs. MCCARTHY of New York, Ms. Florida. H.R. 3750: Mr. FATTAH. MCCOLLUM of Minnesota, Mr. MITCHELL, Mr. H. Con. Res. 336: Mr. LIPINSKI, Mr. DON- H.R. 3765: Mr. ABERCROMBIE. WESTMORELAND, Mr. SCOTT of Georgia, Mr. NELLY, Ms. MATSUI, Mr. LOBIONDO, Mr. H.R. 3817: Mr. SPACE. DOGGETT, Mr. FORTUN˜ O, Mr. DELAHUNT, and ENGEL, Mr. PETERSON of Minnesota, Mr. H.R. 3818: Mr. CAMP of Michigan. Mr. BISHOP of Utah. ROSS, Ms. SCHWARTZ, Mr. MICHAUD, Mr. PAT- H.R. 3822: Ms. EDDIE BERNICE JOHNSON of H.R. 5716: Ms. CORRINE BROWN of Florida RICK MURPHY of Pennsylvania, Mr. BRALEY of Texas. and Mr. ABERCROMBIE. Iowa, and Mr. UDALL of Colorado. H.R. 4008: Mr. MCNERNEY. H.R. 5721: Mr. SNYDER. H. Con. Res. 337: Mrs. LOWEY. H.R. 4026: Mr. THOMPSON of Mississippi and H.R. 5731: Mr. BILBRAY and Mr. CALVERT. H. Con. Res. 338: Mrs. JONES of Ohio. Mr. GRIJALVA. H.R. 5737: Mr. KUHL of New York and Ms. H. Res. 111: Ms. TSONGAS. H.R. 4061: Mr. CARNAHAN. FALLIN. H. Res. 282: Mr. MARSHALL. H.R. 4102: Mr. CONYERS. H.R. 5740: Mr. WHITFIELD of Kentucky, Mr. H. Res. 353: Mr. ALTMIRE. H.R. 4109: Mr. MCDERMOTT. BROWN of South Carolina, Mr. CUMMINGS, and H. Res. 373: Mr. HONDA. H.R. 4138: Mr. FILNER. Mr. RAHALL. H. Res. 415: Mrs. TAUSCHER and Mr. ORTIZ. H.R. 4173: Mr. ELLISON, Mr. RUPPERSBER- H.R. 5774: Mr. BERMAN, Ms. ZOE LOFGREN of H. Res. 653: Mr. CONYERS. GER, and Mr. BLUMENAUER. California, and Mr. HONDA. H. Res. 795: Mr. WOLF. H.R. 4188: Mr. GRIJALVA. H.R. 5788: Mrs. TAUSCHER and Mr. FARR. H. Res. 896: Mr. ALLEN, Mr. ANDREWS, Mr. H.R. 4204: Mr. MITCHELL, Mr. CONYERS, and H.R. 5793: Mr. ISSA, Mr. GERLACH, Mr. GENE ARCURI, Mr. BAIRD, Ms. BEAN, Mr. BERMAN, Mr. BLUMENAUER. GREEN of Texas, Mr. PLATTS, and Mr. SES- Mr. BERRY, Mr. BISHOP of Georgia, Mr. H.R. 4206: Mr. OLVER. SIONS. BOREN, Mr. BOSWELL, Ms. CORRINE BROWN of H.R. 4236: Mr. MCNERNEY, and Mr. UDALL of H.R. 5802: Mr. FATTAH, Mr. MEEK of Flor- Florida, Ms. CLARKE, Mr. CLEAVER, Mr. CLY- Colorado. ida, and Mr. BRADY of Pennsylvania. BURN, Mr. CONYERS, Mr. COOPER, Mr. COSTA, H.R. 4321: Mr. BOSWELL, Mr. MARKEY, Mr. H.R. 5825: Mr. GARRETT of New Jersey. Mr. CRAMER, Mr. CROWLEY, Mr. CUELLAR, Mr. SHAYS, and Mr. FEENEY. H.R. 5831: Mr. TAYLOR. DAVIS of Alabama, Ms. DEGETTE, Ms. H.R. 4344: Mr. SHAYS. H.R. 5833: Mr. FARR. DELAURO, Mr. DICKS, Mr. DONNELLY, Mr.

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HONORING VIETNAM HUMAN tion that I have just introduced that expresses million members in approximately 8,400 Posts RIGHTS DAY AND COMMENDING the sense of the Congress that all American worldwide. THE UNITED STATES COMMIS- flags flown over Federal Government buildings Post 1074 is led by Post Commander An- SION ON INTERNATIONAL RELI- and on federal property should be made in the drew Duncan, and continues to make a dif- GIOUS FREEDOM FOR AGAIN United States. ference in our community, including maintain- RECOMMENDING THAT VIETNAM The U.S. Census bureau estimates that ing the beautiful War Memorial Statue located BE DESIGNATED A COUNTRY OF $5.3 million worth of American flags were im- at Second Avenue and Fayette Street in PARTICULAR CONCERN IN THEIR ported from other countries in 2006, mostly Conshohocken, PA. The VFW proudly notes RECENT ANNUAL REPORT from China. Even though U.S. law requires that its members and its auxiliary contribute every flag be labeled with its ‘‘country of ori- more than 13 million hours of volunteerism in HON. ZOE LOFGREN gin,’’ the figure of foreign-made American flags our area each year. OF CALIFORNIA has steadily grown over the past few years. Madam Speaker, I ask that my colleagues IN THE HOUSE OF REPRESENTATIVES This is an absolute shame! join me today in praising the honorable work, The American flag is much more than our Thursday, May 8, 2008 dedication and service of the men and women national symbol. It embodies our courage, lib- in VFW Post 1074. They continue to improve Ms. ZOE LOFGREN of California. Madam erty, and justice. The flag reminds us each our local communities through their volunteer Speaker, I rise in honor of Vietnam Human and every day of the blood that was shed so efforts, and show why members of the United Rights Day and to commend the United States that we may enjoy our freedoms. So as we States armed services are not only the best Commission on International Religious Free- proudly fly the Stars and Stripes, we must be on the battlefield, but also when they return dom for again recommending that Vietnam be sure that they are homespun in the United home. designated a Country of Particular Concern States! f (CPC) in their recent annual report. So as we approach the few months where The State Department removed this des- we celebrate Memorial Day, Flag Day, and TRIBUTE TO CARL MONTANTE, ignation in November 2006, and since then, Independence Day, I invite my colleagues and THE CANISIUS COLLEGE 2008 DIS- human rights conditions in Vietnam have fellow patriots to join with me in honoring our TINGUISHED CITIZEN AWARD RE- steadily deteriorated. According to the Com- American flag every day! Please join me in CIPIENT mission, ‘‘removing the CPC designation sus- supporting H. Res. 1182 pended the diplomatic framework that had led f HON. BRIAN HIGGINS to a productive bilateral engagement on reli- OF NEW YORK gious freedom and other human rights con- HONORING THE 75TH ANNIVER- IN THE HOUSE OF REPRESENTATIVES cerns and therefore removed the potential in- SARY OF VETERANS OF FOR- centives and leverage needed to urge the Vi- EIGN WARS POST 1074 Thursday, May 8, 2008 etnamese government to continue to improve Mr. HIGGINS. Madam Speaker, I rise today its human rights record.’’ HON. JIM GERLACH to congratulate Carl Montante on receiving the Since the removal of CPC status and Viet- OF PENNSYLVANIA Canisius College 2008 Distinguished Citizen nam’s subsequent accession to the World IN THE HOUSE OF REPRESENTATIVES Award. Carl will be honored at the Canisius Trade Organization, the Vietnamese Govern- Thursday, May 8, 2008 College Board of Regents Scholarship Ball on ment has continued to detain and imprison Mr. GERLACH. Madam Speaker, I rise Saturday, May 10, 2008. Carl is a brilliant ex- those whose only crimes were speaking out today to pay tribute and offer congratulations ample of commitment and devotion to one’s against the government or exercising their to Veterans of Foreign Wars Post 1074, lo- community and fellowman. freedom of religion. In addition to violating Arti- cated in Conshohocken, Pennsylvania for A devoted Western New York native, Carl cle 69 of the Constitution of Vietnam, which celebrating their 75th anniversary this year. and his four siblings were born and raised in guarantees the ‘‘freedom of opinion and They will be acknowledging this great mile- Buffalo, NY where he continues to give back speech, freedom of the press, the right to be stone on May 10, 2008 at a banquet to be to his community. He attended Canisius Col- informed and the right to assemble, form as- held at the Spring Mill Firehouse. The Post lege and, in 1967, he earned his law degree sociations and hold demonstrations in accord- has a proud tradition of public service and vol- from the University of Buffalo Law School. ance with the provisions of the law,’’ these de- unteerism and represents all the great works After practicing law in Buffalo, Carl founded tentions are in violation of the Universal Dec- that our Nation’s VFWs perform each year. the Uniland Development Company in 1974. laration of Human Rights and the International I am sure each of us in the House of Rep- As President and Managing Director of Covenant on Civil and Political Rights. resentatives has had the privilege to meet with Uniland, he oversees the company’s oper- The Commission has recommended CPC constituents who are members of local VFWs, ations and property developments in Buffalo- status for Vietnam every year since 2001. It is or perhaps fortunate to visit a local Post. The Rochester corridor. time for the State Department to heed this ad- VFW traces its roots back to 1899 when vet- Carl is involved in several organizations in vice and redesignate Vietnam as a Country of erans of the Spanish-American and the Phil- his community including the Holy Angels Particular Concern. ippine Insurrection founded local organizations Academy, The BISON Scholarship Fund, and f to secure rights and benefits for their service. the Foundation of the Diocese of Buffalo. He INTRODUCTION OF THE AMERICAN Their work soon shifted to not only helping the is former Chairman of the Buffalo Phil- FLAGS SHOULD BE MADE IN THE brave men and women who served their coun- harmonic Orchestra Annual Fund and National USA RESOLUTION try, but local neighbors and communities who Multiple Sclerosis Society, and serves on the also needed their help. Boards of the Buffalo Niagara Enterprise, the HON. BOB FILNER As their inspiring mission states: ‘‘Honor the Buffalo Niagara Partnership, and Catholic dead by helping the living.’’ VFWs support Health System. OF CALIFORNIA Perhaps most notable is Carl’s service and IN THE HOUSE OF REPRESENTATIVES countless activities, through veterans’ service, community service, national security and a contribution to his alma mater, Canisius Col- Thursday, May 8, 2008 strong national defense. lege. Carl has served in numerous leadership Mr. FILNER. Madam Speaker and col- Today, the Veterans of Foreign Wars of the capacities including as chair of the Canisius leagues, I rise today to speak about a resolu- United States, with its Auxiliaries, includes 2.3 College Board of Trustees from 1997–2001.

● This ‘‘bullet’’ symbol identifies statements or insertions which are not spoken by a Member of the Senate on the floor. Matter set in this typeface indicates words inserted or appended, rather than spoken, by a Member of the House on the floor.

VerDate Mar 15 2010 07:34 Nov 09, 2010 Jkt 069102 PO 00000 Frm 00001 Fmt 0689 Sfmt 9920 E:\BR08\E08MY8.000 E08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD May 8, 2008 EXTENSIONS OF REMARKS, Vol. 154, Pt. 6 8369 Carl and his wife, Carol Ann, recently com- The injured football player was tended to by their contributions to the Southern Nevada mitted $5.1 million to the college for the devel- Jaquette and Johnston, who decided that his community, and for their recognition by the opment of an interdisciplinary science center. abdominal pain was serious enough to call for SBA as the 2008 Home-Based Business of The Montante family’s donation is the largest an ambulance. It turned out that the injured the Year. in the Canisius’ history. I applaud his desire to player was suffering from a ruptured gall blad- give back to his community and believe his der, which would have caused blood poisoning f contributions to education and science will and possibly death if left untreated. Were it have a great impact on the future of Western not for Jaquette and Johnson’s accurate initial TRIBUTE TO THE DON BOSCO New York. examination and determination, it is unlikely WRESTLING TEAM Madam Speaker, I am proud to congratulate that his injury would have been treated in Carl J. Montante for this great honor and ap- time. plaud him for his service and dedication to the The quick thinking and calm demeanor dis- HON. BRUCE L. BRALEY Western New York community. I wish Carl and played by these two athletic trainers serves as OF IOWA his family the best in the years to come. a wonderful example to all those who care for f others. I commend Sue Wilson and Brian IN THE HOUSE OF REPRESENTATIVES Jaquette for their outstanding professional RECOGNIZING THE MULTIPLE Thursday, May 8, 2008 work and dedication to the young athletes they SCLEROSIS SOCIETY AND THEIR serve. I am honored to represent each of them Mr. BRALEY of Iowa. Madam Speaker, I NOBLE CAUSE in the United States Congress, and I wish rise today to recognize the outstanding results them the best in their careers. achieved by the Don Bosco wrestling team at HON. MICHAEL C. BURGESS f the Iowa State Wrestling Tournament in Des OF TEXAS Moines this past winter. IN THE HOUSE OF REPRESENTATIVES PAYING TRIBUTE TO ROBERT AND JUDY ALVAREZ Don Bosco rolled to its third straight Class Thursday, May 8, 2008 1A title with a stunning 81 point win over New Mr. BURGESS. Madam Speaker, every London/WMU. This win set a new class record hour in the United States someone new is di- HON. JON C. PORTER with 175.5 points. Also celebrating his third agnosed with Multiple Sclerosis. It is a lasting OF NEVADA straight win was Bart Reiter, a junior, who be- disease which attacks the central nervous sys- IN THE HOUSE OF REPRESENTATIVES came a three-time state champion and joins tem, and can be extremely disabling. This Thursday, May 8, 2008 only 13 other three-time winners this decade. week the National Multiple Sclerosis Society is Mr. PORTER. Madam Speaker, it is my dis- I congratulate Don Bosco for winning the in town to promote awareness of people living tinct pleasure to rise today to honor Mr. and Iowa Class 1A state championship. The last with MS—approximately 400,000 Americans Mrs. Robert and Judy Alvarez by entering their team to win three in a row was Lisbon from and 2.5 million people worldwide. names in the CONGRESSIONAL RECORD, the of- 1988–1990. Many Americans know a person living with ficial record of the proceedings and debates of multiple sclerosis, a mother or father, a son or Madam Speaker, I am extremely proud of the United States Congress since 1873. Today the accomplishments of the Don Bosco wres- daughter, another family member or friend, or I honor Mr. and Mrs. Alvarez for being award- maybe even a colleague. For me, it was a tling team, both on and off the mat, and I am ed with the Small Business Administration’s proud to serve them in Congress. member of my staff. This brave and strong (SBA) 2008 Home-Based Business of the woman inspired me to get more involved in Year, sponsored by the SBA’s Nevada District f the battle to live in a world free of multiple Office. sclerosis. RJ Communications Concepts, LLC was es- As a medical doctor prior to coming to Con- HONOR POLICE OFFICERS tablished by Bob and Judy Alvarez in 1995. gress, I’m working to find sensible solutions The company began as a home based busi- for the health care challenges that Americans ness and represents a culmination of the cou- face. As the co-chair of the newly formed Con- HON. LAMAR SMITH ple’s combined 60-plus years of work within gressional Multiple Sclerosis Caucus, I intend OF TEXAS the telecommunications industry. Their experi- to bring the needs of those individuals into the ence, hard work, and dedication quickly re- IN THE HOUSE OF REPRESENTATIVES larger discussion of quality health care. sulted in the company expanding beyond the Madam Speaker, we must work together to walls of the Alvarez’s home. Thursday, May 8, 2008 improve access to quality health services, to Today, the company covers a wide range of break down barriers, and to make MS thera- Mr. SMITH of Texas. In a few days, thou- services. The distribution of electronic compo- pies more affordable. I ask other Members of sands of police officers from around the coun- nents and testing equipment comprises over the House to join me in this noble cause. We try will travel to Washington, DC for National half of the company’s business. The company must always remember that behind every sta- Police Week. also provides services for multiple fields, in- tistic is the face of a family member or friend. cluding information technology supplies, con- This occasion provides Congress with the We have a shared responsibility to offer help sulting, training equipment and business provi- opportunity to honor those who have given and hope. There is no better time than now to sions. their lives to protect our families, constituents, begin offering it. In addition to the professional accomplish- and communities. f ments, Bob and Judy have been good com- In my district, ‘‘The Memorial Wall’’ stands TRIBUTE TO BRIAN JAQUETTE munity partners to a variety of local non-profit in the San Antonio Police Academy’s court- AND SUE WILSON organizations in Southern Nevada. Through yard and lists the names of those forty-eight their company, Bob and Judy helped organiza- officers who have sacrificed their lives while HON. TOM LATHAM tions including the North Las Vegas Boys and fighting to keep San Antonio’s neighborhoods OF IOWA Girls Club, the Nathan Adelson Hospice and safe and crime-free for our children. the Sunrise Children’s Foundation, among oth- IN THE HOUSE OF REPRESENTATIVES We can honor their legacies and the lives of ers. According to Judy Alvarez, ‘‘We feel a Thursday, May 8, 2008 other police officers by bringing legislation to level of social responsibility . . . Even if you’re the floor that will help Federal, State and local Mr. LATHAM. Madam Speaker, I rise today small you can still do something.’’ Additionally, law enforcement officials combat crime. to recognize high school athletic trainers Brian as a former member of the U.S. Air Force, Jaquette of Fort Dodge High School and Sue Bob and his wife, Judy has also provided as- For example, the bill Congressman FORBES Wilson of Johnston High School, for their sistance to Nellis Air Force Base. and I introduced, H.R. 3156, the ‘‘Violent quick thinking in treating a football player who Madam Speaker, I am proud to honor Mr. Crime Control Act of 2007,’’ would do just that. suffered serious internal injuries during a foot- and Mrs. Robert and Judy Alvarez for their ac- Why is the Democratic leadership in Con- ball game last fall. complishments as small business owners, gress stalling crime legislation?

VerDate Mar 15 2010 07:34 Nov 09, 2010 Jkt 069102 PO 00000 Frm 00002 Fmt 0689 Sfmt 9920 E:\BR08\E08MY8.000 E08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD 8370 EXTENSIONS OF REMARKS, Vol. 154, Pt. 6 May 8, 2008 KEEP STARRETT CITY Had I voted, I would have voted ‘‘yes’’ on the excellence of the program. President and AFFORDABLE rollcall No. 294. CEO A.R. Sullivan has assembled an award f winning faculty, including program director HON. ANTHONY D. WEINER Chef Tom Hickey, a Culinary Olympics medal PASS A CLEAN AND HONEST winner who has overseen culinary operations OF NEW YORK SUPPLEMENTAL IN THE HOUSE OF REPRESENTATIVES for presidential inaugurations; catering depart- ment chair chef Kimberly Jones, who has de- Thursday, May 8, 2008 HON. JOE WILSON veloped nationally renowned recipes and ca- Mr. WEINER. Madam Speaker, I rise to dis- OF SOUTH CAROLINA tered some of the world’s highest profile cuss the need for additional affordable hous- IN THE HOUSE OF REPRESENTATIVES events; chef John Castro, our local celebrity ing across the nation. Financial planners sug- Thursday, May 8, 2008 chef who bested the competition on the TV gest that families devote 30 percent of their in- Food Network’s Throw Down with Bobby Flay come to paying for housing costs. But for Mr. WILSON of South Carolina. Madam and has been featured on the Travel Channel; many families across the country such a rule Speaker, American men and women are on and baking and pastry department chef, the of thumb sounds more like a pipe dream. Ac- the front lines of the Global War on Terrorism nationally ranked Derek Spendlove, who won cording to the 2006 American Community Sur- defeating our enemies abroad so we do not a gold medal in the 1988 Culinary Olympics. vey, twenty-five percent of renters across the have to face them here at home. Unfortu- That faculty and leadership has helped Sulli- nation spend more than 50 percent of their in- nately, at home, Democrats are threatening to van’s Culinary Competition team win 291 med- come on rent. Nationwide, there are 9 million push through an emergency war supplemental als, including Southeast Regional Pastry Chef extremely low-income households but only 6 spending bill, without committee consideration, of the Year in 2008 and Southeast Regional million units renting at affordable prices, leav- that includes unrelated spending. Champions in 2001, 2004 and 2005. The ing a shortage of 3 million affordable housing Funding for our troops should be priority school was the first culinary school in America units. number one. However, it is not the time nor to be invited to cook at New York’s prestigious In my hometown of New York City, 28 per- the place to add additional spending on top of James Beard House. cent of renters are paying more than half of what our military has requested in an effort to The alumni list of four-star chefs has the their income for rent. Keeping the Starrett City push it through on the coattails of our bravest length of a school celebrating its centennial. development in Brooklyn affordable is critical. and brightest. If the majority wishes to in- Still for all that has been accomplished Starrett City is the Nation’s largest govern- crease spending on other programs unrelated through NCHS in a quarter century, the prom- ment-subsidized rental housing complex. It to the Global War on Terrorism, then they ise for the future is equally bright. The pro- was designed in the 1970s as a subsidized, should bring those requests up under regular gram now builds on a proud tradition where middle-class co-operative under New York order—not hidden in an emergency troop students and alumni never cease to exceed State’s Mitchell-Lama program. It is home to funding bill. our highest expectations. 12,000 residents in nearly 6,000 housing units. As Chairman of the Joint Chiefs of Staff, I urge my colleagues to join me in com- Most of the residents of Starrett City live on Admiral Mike Mullen has made it clear, this mending Sullivan University’s National Center annual gross incomes of about $20,000 to supplement spending bill is vital to our secu- for Hospitality Studies on the last twenty five $40,000 and the average subsidized rent is rity. Without passage of the supplemental, our years of distinction and to wish the center the $200–$400. soldiers will stop getting their paychecks and best as it continues to satisfy our taste for ex- I, along with my colleague from New York, our ability to equip our troops will be under- cellence in the years to come. Representative EDOLPHUS TOWNS, requested mined. f that the House Financial Services Sub- In conclusion, God bless our troops, and we committee on Housing and Community Oppor- will never forget September 11th. CONGRATULATING NANCY tunity hold a field hearing in New York City fol- f BRINKER, WHITE HOUSE CHIEF lowing an attempt to sell Starrett City that OF PROTOCOL, ON HER BEING IN HONOR OF 25TH ANNIVERSARY jeopardized the complex’s affordability. The NAMED ONE OF THE 100 MOST OF SULLIVAN’S NATIONAL CEN- hearing was held in July 2007 and inves- INFLUENTIAL PEOPLE IN THE TER FOR HOSPITALITY STUDIES tigated the impact of affordable housing sales WORLD on housing costs in New York City. Mr. TOWNS’ legislation before the House HON. JOHN A. YARMUTH HON. RAY LaHOOD today will allow owners and the Department of OF KENTUCKY OF ILLINOIS Housing and Urban Development to convert IN THE HOUSE OF REPRESENTATIVES IN THE HOUSE OF REPRESENTATIVES the current subsidy contracts that are in place Thursday, May 8, 2008 Thursday, May 8, 2008 at Starrett City into a new, 20-year Section 8 contract. This will ensure that a new owner Mr. YARMUTH. Madam Speaker, I rise in Mr. LAHOOD. Madam Speaker, I rise today can secure the long-term financing necessary honor of the twenty-fifth anniversary of Sul- to congratulate Nancy Brinker for the recogni- to keep Starrett City affordable and its tenants livan University’s National Center for Hospi- tion she has received from Time Magazine as in their homes. tality Studies, in Louisville, Kentucky. one of the 100 Most Influential People in the Without this legislation, Starrett City’s own- Nearly four thousand students have grad- World. ers would likely opt out of their Section 8 con- uated from NCHS and gone on to impact the Nancy grew up in my hometown of Peoria, tract and convert Starrett City to market-rate culinary, travel, and hospitality fields. The im- Illinois, and all of us are extremely proud of housing, further contributing to the lack of af- pact of Sullivan’s exceptional program can be her many accomplishments in diplomacy and fordable housing in New York City. felt throughout the nation, from Las Vegas to in the health care arena. I thank my colleague, Mr. TOWNS and sup- New Orleans and many lucky cities in be- As White House Chief of Protocol and pre- port his legislation. tween, but nowhere—I am pleased to say— viously as President Bush’s Ambassador to f has NCHS and its alumni had a greater influ- the Republic of Hungary, Nancy has fostered ence than in my hometown of Louisville. meaningful, positive relationships for the PERSONAL EXPLANATION On any given weekend night, there are over United States around the world and advanced 600 Sullivan students working in our commu- a broad range of U.S. security and economic HON. RON KLEIN nity’s hotels and restaurants. Alumni include interests. OF FLORIDA many of our city’s finest chefs and res- But Peorians know her best for her role as IN THE HOUSE OF REPRESENTATIVES taurateurs, who have helped ensure that founder of the Susan G. Komen Race for the Derby week, when our town becomes the na- Cure after promising her sister, Susan, that Thursday, May 8, 2008 tion’s top tourist destination, visitors will leave she would fight to end breast cancer forever. Mr. KLEIN of Florida. Madam Speaker, I raving about more than just horse races. Named after Susan, who died from breast was unavoidably detained on Wednesday, But while I certainly recommend it, one does cancer in 1980, the foundation is now recog- May 7, 2008. not need to come to Louisville to recognize nized as the Nation’s leading catalyst in the

VerDate Mar 15 2010 07:34 Nov 09, 2010 Jkt 069102 PO 00000 Frm 00003 Fmt 0689 Sfmt 9920 E:\BR08\E08MY8.000 E08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD May 8, 2008 EXTENSIONS OF REMARKS, Vol. 154, Pt. 6 8371 fight against breast cancer. It all began with a LAWRENCE SUMMERS EXPLAINS And because I can think of no more important race in Dallas, followed by one in Peoria, and WHY ‘‘A STRATEGY TO PROMOTE contribution to the debate about economic pol- now there are over 112 races with over a mil- HEALTHY GLOBALISATION MUST icy in America, I ask that Secretary Summers’ lion participants. Research is the key to finding RELY ON STRENGTHING EF- very important essay be printed here. a cure for this disease, and with the financial FORTS TO REDUCE INEQUALITY [From the Financial Times, May 5, 2008] AND INSECURITY’’ A STRATEGY TO PROMOTE HEALTHY assistance of the Susan G. Komen Founda- GLOBALISATION tion, much progress has been made. The suc- (By Lawrence Summers) cess of this foundation and its mission is HON. BARNEY FRANK OF MASSACHUSETTS Last week, in this column, I argued that known throughout the world. making the case that trade agreements im- IN THE HOUSE OF REPRESENTATIVES In the words of Cokie Roberts’ tribute in the prove economic welfare might no longer be Thursday, May 8, 2008 sufficient to maintain political support for Times article, ‘‘When Nancy Brinker meets up economic internationalism in the U.S. and with her sister, Susan G. Komen, on the other Mr. FRANK of Massachusetts. Madam other countries. Instead, I suggested that op- Speaker, it has been common for those who side of the pearly gates, she will be able to position to trade agreements, and economic support increased trade without any accom- internationalism more generally, reflected a say, ‘‘I did what you asked.’’ And, in the proc- panying policies to address the impact on for- growing recognition by workers that what is ess, she will have helped millions who suffer eign and domestic workers to dismiss argu- good for the global economy and its business from this dreaded disease. ments for such policies as mere protectionism, champions was not necessarily good for lacking any economic justification. them, and that there were reasonable f grounds for this belief. In the Financial Times, Monday May 5th, The most important reason for doubting one of the leading economists in the country, that an increasingly successful, integrated MACOMB COUNTY SCHOOLS EARN former Treasury Secretary Lawrence Sum- global economy will benefit U.S. workers BLUE RIBBON STATUS mers, refutes this effort to dismiss our con- (and those in other industrial countries) is cerns. As former Secretary Summers says, the weakening of the link between the suc- some of the ‘‘opposition to trade agreements cess of a nation’s workers and the success of HON. CANDICE S. MILLER both its trading partners and its companies. and economic internationalism more generally, This phenomenon was first emphasised years OF MICHIGAN reflect a growing recognition by workers that ago by Robert Reich, the former U.S. labour what is good for the global economy and its secretary. The normal argument is that a IN THE HOUSE OF REPRESENTATIVES business champions was not necessarily good more rapidly growing global economy bene- fits workers and companies in an individual Thursday, May 8, 2008 for them, and that there were reasonable grounds for this belief.’’ country by expanding the market for ex- Lawrence Summers has been and is a ports. This is a valid consideration. But it is Mrs. MILLER of Michigan. Madam Speaker, also true that the success of other countries, this week the Michigan Board of Education strong supporter of increased trade. But unlike and greater global integration, places more designated five schools across the entire State many others who have stuck with a far less competitive pressure on an individual econ- as Blue Ribbon Exemplary Schools. You might sophisticated analysis, ignoring contemporary omy. Workers are likely disproportionately reality, Secretary Summers explains why the to bear the brunt of this pressure. ask why this is significant. Well, I will tell you current globalized economy means that trade Part of the reason why U.S. workers (or why. can have a negative impact on some workers those in Europe and Japan) enjoy high wages is that they are more highly skilled than The Blue Ribbon is the most prestigious in higher wage countries. As he notes, ‘‘in an most workers in the developing world. Yet education award in the state and it distin- open economy, where investments in innova- they also earn higher wages because they guishes schools for their excellence in leader- tion, brands, a strong corporate culture or can be more productive—their effort is com- ship, teaching, curriculum, student achieve- even in certain kinds of equipment can be plemented by capital, broadly defined to in- clude equipment, managerial expertise, cor- ment, parent involvement and community sup- combined with labour from anywhere in the world, workers no longer have the same stake porate culture, infrastructure and the capac- port. ity, for innovation. In a closed economy any- in productive investment by companies as it Well, I am proud to inform you that 2 of thing that promotes investment in produc- becomes easier for corporations to combine tive capital necessarily raises workers’ these schools reside in the 10th Congres- their capital with lower priced labour over- wages. In a closed economy, corporations sional District. seas.... Moreover businesses can use the have a huge stake in the quality of the na- Powell Middle School Bulldogs in Romeo threat of relocating as a lever to extract con- tional workforce and infrastructure. cessions.... Inevitably the cost of these The situation is very different in an open and Malow Junior High Mustangs in Shelby economy where investments in innovation, concessions is borne by labour.’’ Township rightfully earned this prestigious dis- brands, a strong corporate culture or even in Madam Speaker, the economic explanation tinction. The Bulldogs and Mustangs under certain kinds of equipment can be combined given by Secretary Summers is not meant by with labour from anywhere in the world. went a rigorous examination process which him as an argument against trade, but rather Workers no longer have the same stake in even included on sitevisits from state edu- as an argument for accompanying continued productive investment by companies as it cation officials. expansion of trade with appropriate public poli- becomes easier for corporations to combine cies that deal with some of these effects, and their capital with lower priced labour over- Under the leadership of Principal Jeffrey seas. Companies, in turn, come to have less LaPerriere, Powell became the first school in recognize that while trade has overall bene- of a stake in the quality of the workforce the Rome Community School District to re- ficial effects for the economy, the distribution and infrastructure in their home country of the costs and benefits are far from uniform. ceive this honor. On the other hand, Malow when they can produce anywhere. Moreover And the New York Times for Tuesday, May businesses can use the threat of relocating as Principal Robert Hock continued Utica Com- 6th, illustrates the economic reality that gives a lever to extract concessions regarding tax munity School District’s strong Blue Ribbon rise to the political opposition to increased policy, regulations and specific subsidies. In- tradition by becoming the 22nd school to get trade and internationalization that Secretary evitably the cost of these concessions is the award. borne by labour. Summers notes—as the Times article of that The public policy response of withdrawing I commend all the teachers, parents and date noted, ‘‘In inflation adjusted terms . . . from the global economy, or reducing the students for their steadfast commitment and weekly wages have slipped by 1.3 percent pace of integration, is ultimately untenable. dedication to achieve such a remarkable ac- since late 2006.’’ It would generate resentment abroad on a Madam Speaker, I strongly urge leaders in dangerous scale, hurt the economy as other complishment! This is a great day for all the business community and others who countries retaliated, and make us less com- Macomb County schools so congratulations on would like to see further progress towards petitive as companies in rival countries con- a job well done! tinue to integrate their production lines internationalization to read and understand with developing countries. As Bill Clinton Secretary Summers’ economic analysis, and said in his first major international eco- the very thoughtful public policy recommenda- nomic speech as president, ‘‘the United tions he includes that stem from this analysis. States must compete not retreat’’.

VerDate Mar 15 2010 07:34 Nov 09, 2010 Jkt 069102 PO 00000 Frm 00004 Fmt 0689 Sfmt 0634 E:\BR08\E08MY8.000 E08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD 8372 EXTENSIONS OF REMARKS, Vol. 154, Pt. 6 May 8, 2008 The domestic component of a strategy to throughout the South Bay, and I am not alone and are either monopolies or duopolies in promote healthy globalisation must rely on in expressing enormous gratitude for all he most areas of the country, have proposed to strengthening efforts to reduce inequality has done. give favored treatment to some Internet con- and insecurity. The international component Ed received nine medals on his tours of must focus on the interests of working peo- tent and disfavored treatment to other content. ple in all countries, in addition to the cur- duty in Korea, including a Purple Heart and Under these proposed business models, what rent emphasis on the priorities of global-cor- the Bronze Star with a ‘‘V’’ for valor. With the treatment you get will be determined by how porations. same strength of character that got him those much you pay or, potentially, whether the First, the U.S. should take the lead in pro- medals, he has fought on behalf of all vet- Internet service provider approves of the con- moting global co-operation in the inter- erans. tent or whether the provider has a financial in- national tax arena. There has been a race to Locally, Ed’s contributions have been invalu- terest at stake. Under these regimes, many of the bottom in the taxation of corporate in- able. In his post at the State Employment De- the innovations and ideas that we have en- come as nations lower their rates to entice velopment Department’s Torrance office, he business to issue more debt and invest in joyed on the Internet may never have oc- their jurisdictions. Closely related is the has worked to make sure area veterans find curred. We would never have had a Google problem of tax havens that seek to lure the work and dignity they deserve. search engine or YouTube videos if ‘‘pay to wealthy citizens with promises that they can Perhaps his most notable and lasting initia- play’’ had been our national policy. To be avoid paying taxes altogether on large parts tive is the ‘‘Visit a Vet’’ program, which pro- sure, if we go in this direction, it will stifle both of their fortunes. It might be inevitable that motes visits with veterans at VA hospitals to future technological innovation and free globalisation leads to some increases in in- let them know they are not forgotten and speech. equality; it is not necessary that it also com- thank them for their service. We should all Rather than attempt regulation of the indus- promise the possibility of progressive tax- heed his call of ‘‘let us not just think of our try, we believe an antitrust remedy is the most ation. Second, an increased focus of international veterans on holidays but do it all year long.’’ appropriate way to deal with the problem. The economic diplomacy should be to prevent Ed Foster is a tireless advocate for veterans antitrust laws exist to correct distortions of the harmful regulatory competition. In many everywhere, and a wonderfully dedicated man. free market, where monopolies or cartels have areas it is appropriate that regulations differ He represents, to me, what it means to serve cornered the market, and competition is not between countries in response to local cir- one’s country for a lifetime. Ed retires this being allowed to work. The antitrust laws can cumstances. But there is a reason why pro- month at the young age of 76. On behalf of help maintain a free and open Internet. gressives in the early part of the 20th cen- the entire community, I say thank you, on be- The ‘‘Internet Freedom and Nondiscrimina- tury sought to have the federal government half of a grateful nation. tion Act of 2008’’ amends the Clayton Act to take over many kinds of regulatory responsi- bility. They were concerned that competi- f require that broadband service providers inter- connect with the facilities of other network pro- tion for business across states, and their ease INTRODUCTION OF THE ‘‘INTER- of being able to move, would lead to a race viders on a reasonable and nondiscriminatory to the bottom. Financial regulation is only NET FREEDOM AND NON- basis. It also requires them to operate their one example of where the mantra of needing DISCRIMINATION ACT OF 2008’’ network in a reasonable and nondiscriminatory to be ‘‘internationally competitive’’ has been manner so that all content, applications and invoked too often as a reason to cut back on HON. JOHN CONYERS, JR. services are treated the same and have an regulation. There has not been enough seri- OF MICHIGAN equal opportunity to reach consumers. The bill ous consideration of the alternative—global co-operation to raise standards. While labour IN THE HOUSE OF REPRESENTATIVES expressly preserves the ability of broadband standards arguments have at times been in- Thursday, May 8, 2008 service providers to manage their network, so voked as a cover for protectionism, and this long as it is done in a nondiscriminatory man- must be avoided, it is entirely appropriate Mr. CONYERS. Madam Speaker, today I ner, and the bill allows the operators to give that U.S. policymakers seek to ensure that am introducing the ‘‘Internet Freedom and priority to emergency communications and greater global integration does not become Nondiscrimination Act of 2008,’’ legislation that take reasonable and nondiscriminatory meas- an excuse for eroding labour rights. establishes an antitrust remedy for anti- ures to prevent violations of the law. To benefit the interests of U.S. citizens competitive and discriminatory practices by Americans have come to expect the Internet and command broadpolitical support, US broadband service providers. I am joined by international economic policy will need to to be open to everyone and everything. The Representative LOFGREN. focus on the issues in which the largest num- Internet was designed without gatekeepers for ber of Americans have the greatest stake. A Over the last ten years, the Internet has new content and services and without central- decoupling of the interests of businesses and gone from its infancy through a period of ex- ized control. If we allow companies with mo- nations may be inevitable; a decoupling of ponential growth. Today, it is estimated that nopoly or duopoly power to control how the international economic policies and the in- over 1.3 billion people use the Internet—that is Internet operates, start-up companies might terests of American workers is not. almost 20 percent of the world’s population. In never be able to offer their products, network f the last 7 years alone, the worldwide use of providers could have the power to choose the Internet has jumped 265 percent. what content is available, and the artists and EDWARD EARNEST FOSTER: The Internet has become the dominant thinkers of our time could find their speech FIERCE ADVOCATE FOR VET- venue for the expression of ideas and public censored. ERANS discourse. From social networking to get-out- f the-vote drives, the Internet is now a leading HON. JANE HARMAN tool for speech and action. Web sites like CONGRATULATING NURSE TONI OF CALIFORNIA Facebook, MySpace, LinkedIn, and Monster HADDOX IN THE HOUSE OF REPRESENTATIVES have changed the way people of all ages con- nect socially and professionally. Political can- Thursday, May 8, 2008 HON. MICHAEL C. BURGESS didates raise more money online with each OF TEXAS Ms. HARMAN. Madam Speaker, rep- election cycle. Newspaper Web sites and IN THE HOUSE OF REPRESENTATIVES resenting the 36th district of California since independent blogs have revolutionized the 1992 has given me the opportunity to meet ways in which news and media are dissemi- Thursday, May 8, 2008 many veterans and learn their stories. One nated and consumed. And the Internet has Mr. BURGESS. Madam Speaker, I rise special veteran and friend, Ed Foster, has an opened up new performance venues to today to honor Toni Haddox, of Denton, incredible story—one I would like to share with emerging artists and entertainers. In these and Texas. Ms. Haddox has been recognized as my colleagues on the eve of his retirement many other ways, the technological innovation one of the Great 100 Nurses of 2008 by the from the Torrance Job Service Office. in communication made possible by the Inter- Dallas-Fort Worth Nurse Executives and Dis- Edward Earnest Foster enlisted in the Army net has made it among the most powerful out- tricts Three and Four of the Texas Nurses As- at age 19, and served as a medic in the Ko- lets for creativity and free speech. sociation. rean war. As a medic, soldier and veteran, he However, some of the Internet Service Pro- Ms. Haddox is a nurse at the Denton Re- has touched the lives of countless individuals. viders, which control 96 percent of the resi- gional Medical Center, which serves Denton, He has advanced the cause of veteran’s rights dential market for high-speed Internet access, Wise, Cooke and Montague Counties. She is

VerDate Mar 15 2010 07:34 Nov 09, 2010 Jkt 069102 PO 00000 Frm 00005 Fmt 0689 Sfmt 9920 E:\BR08\E08MY8.000 E08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD May 8, 2008 EXTENSIONS OF REMARKS, Vol. 154, Pt. 6 8373 a perfect example of Denton Regional’s mis- PAYING TRIBUTE TO JACKIE suppliers, corporate supporters, and local vol- sion in the community: she is a caring, com- DELANEY unteers. passionate person who exhibits passion, John Gonsalves started Homes for Our knowledge, and commitment to her patients HON. JON C. PORTER Troops in 2004 after watching a news report and colleagues on a daily basis. OF NEVADA of a severely injured servicemember who had returned from Iraq. He thought to himself, Each year this recognition is bestowed on IN THE HOUSE OF REPRESENTATIVES ‘‘What happens to our severely injured vet- nurses who embody excellence in the science Thursday, May 8, 2008 and art of nursing. The chosen honorees be- erans once they return?’’ Mr. Gonsalves long to an array of professional organizations Mr. PORTER. Madam Speaker, it is my dis- searched for an organization where he could and work in a wide variety of clinical special- tinct pleasure to rise today to honor Jackie donate his building expertise for a few weeks, ties. This is the 18th consecutive year that the DeLaney by entering her name in the CON- but when he found out that none existed, he Texas Nurses Association, Districts Three and GRESSIONAL RECORD, the official record of the quit his contractor job and started Homes for Four, and the Dallas-Fort Worth Nurse Execu- proceedings and debates of the United States Our Troops. Since its founding, Homes for Our tives have recognized area nurses for their Congress since 1873. Today I pay tribute to Troops has provided 25 veterans and their compassion and dedication. The recipients will Jackie DeLaney, President and CEO of Sun families with homes suited to meet the phys- be honored at a gala event on Monday, May West Bank, for her small-business achieve- ical challenges they face after returning with 12, 2008. ments throughout the Las Vegas community. life-altering injuries. As the only female bank president and CEO The continued efforts of Homes for Our Madam Speaker, it is with great pride that I in Nevada, Jackie DeLaney is credited with Troops has gained national recognition. In stand here today to recognize Toni Haddox. It establishing the Sun West Bank in 1998 with fact, the American Institute of Philanthropy has is an outstanding honor to represent both Ms. one of the largest capital investments of any named them as one of their Top-Rated Char- Haddox and her fellow nurses in the 26th Dis- bank in the state. She established a board of ities of 2007. They have the honor of being trict of Texas. Her constant vigilance and skill directors and filed and received approval on one of only five veterans charities included in has made North Texas a better place, and her all necessary regulatory applications. Sun the top-rated category. This honor not only allegiance to her craft is nothing less than re- West Bank is the only local bank owned by displays the breadth of their efforts, but also markable. I sincerely thank her for her service Nevada business professionals. The full-serv- the speed and efficiency of their delivery. to our community. ice bank offers a full array of business prod- Madam Speaker, I salute Homes for Our ucts and services including SBA and small Troops for their tireless efforts on behalf of our f business commercial loans as well as expan- courageous men and women in the armed services. Theirs is a shining example of the al- TRIBUTE TO TIANNA SULLIVAN sion financing. Sun West also works with the Nevada Small Business Development Center truism that embodies the American spirit. and other agencies to help entrepreneurs and f HON. TOM LATHAM prospective business owners examine how to HONORING THE LOUISIANA assess their business models and understand HONORAIR VETERANS OF IOWA the market. IN THE HOUSE OF REPRESENTATIVES Jackie’s role at Sun West has shown a great level of devotion to the community and HON. CHARLES W. BOUSTANY, JR. Thursday, May 8, 2008 has been recognized by a number of commu- OF LOUISIANA IN THE HOUSE OF REPRESENTATIVES Mr. LATHAM. Madam Speaker, I rise today nity organizations for their charitable work. to recognize Osage High School senior Tianna Sun West has also achieved national recogni- Thursday, May 8, 2008 Sullivan for helping to save the life of an elder- tion for its dedication to America’s Promise, Mr. BOUSTANY. Madam Speaker, I rise ly woman who had wandered away from a which strives to improve the health and well today to recognize and honor a very special health care center. being of America’s youth. The bank has also group from South Louisiana. In the early morning of January 20, 2008, raised funds for organizations including the On May 10, 2008, a group of 97 veterans Tianna was driving home in 14 degrees below Boys & Girls Clubs of Las Vegas, Big Brothers and their guardians will fly to Washington with zero weather and came upon 88-year-old Mar- Big Sisters of Nevada, the Shade Tree Shel- a very special program. Louisiana HonorAir is guerite Miller. Marguerite was barefoot and ter, and Classroom on Wheels. providing the opportunity for these veterans Madam Speaker, I am proud to honor Jack- clothed only in a hospital gown. Although from my home State of Louisiana to visit ie DeLaney and would like to recognize her Tianna was scared, she knew that Marguerite Washington, DC, on a chartered flight free of contributions to small businesses throughout needed help immediately. Tianna attempted to charge. During their visit, they will visit Arling- the Las Vegas community. I would also like to get Marguerite in her car, but she was so cold ton National Cemetery and the World War II congratulate her on receiving the Financial and stiff that she could only clutch to Tianna Memorial. For many, this will be their first and Services Champion of the Year for the 2008 for warmth. Tianna dialed 911 and stayed with only opportunity to see these sights dedicated Small Business Awards. Marguerite until Osage police officer Brian to the great service they have provided for our Wright arrived. Marguerite’s body temperature f Nation. had dropped to 90 degrees, and they had a RECOGNIZING HOMES FOR OUR Today I ask my colleagues to join me in difficult time getting her in the police car due TROOPS honoring these great Americans and thanking to her stiffness from the cold. An ambulance them for their unselfish service. then came and took Marguerite to Mitchell f County Regional Hospital. Later, she was HON. JOE KNOLLENBERG OF MICHIGAN MOURNING THE PASSING OF taken to the Iowa City hospital burn center to RONALD D. BROWN treat her frostbite injuries. IN THE HOUSE OF REPRESENTATIVES Tianna’s heroic actions and quick thinking Thursday, May 8, 2008 HON. JOHN LEWIS set an example for us all. Tianna’s courage Mr. KNOLLENBERG. Madam Speaker, I OF GEORGIA goes above and beyond what is asked of us rise today to recognize Home for Our Troops IN THE HOUSE OF REPRESENTATIVES as citizens of this country, and her willingness as it holds its fifth annual event in my district to help a stranger in need illustrates the com- in Troy, Michigan, on May 10, 2008. Thursday, May 8, 2008 passion of Iowans; willing to do whatever it Homes for Our Troops is a nonprofit organi- Mr. LEWIS of Georgia. Madam Speaker, on takes for the safety of our fellow citizens. For zation that provides specially adapted homes Monday, the city of Atlanta lost one of its most this I know my colleagues in the United States for our severely injured servicemembers. The influential residents and a pillar of the commu- Congress join me in offering Tianna our con- organization is able to provide assistance at nity, Ronald Brown. gratulations and thanks. I am extremely hon- no cost to the veterans that they serve Ron Brown was the head of Atlanta Life Fi- ored to represent Tianna in Congress, and I through a growing network of monetary con- nancial Group, a company that is a historic in- wish her all the best in her future endeavors. tributions, donations from building contractors, stitution. The 103-year-old company was

VerDate Mar 15 2010 07:34 Nov 09, 2010 Jkt 069102 PO 00000 Frm 00006 Fmt 0689 Sfmt 9920 E:\BR08\E08MY8.000 E08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD 8374 EXTENSIONS OF REMARKS, Vol. 154, Pt. 6 May 8, 2008 founded by a former slave by the name of GCC has been successful in nurturing local our Nation safe from the many threats we Alonzo Herndon and is the oldest and largest talent to contribute to our island’s economy. have faced and continue to face today. Many black-owned, privately held insurance com- GCC maintains membership in the pres- of the men and women who have worked pany in the country. Ron was a major factor tigious educational organizations of the Amer- there, and continue to work there, are patriots, in Atlanta Life’s success. ican Association of Community and Junior doing some of the Nation’s most important Ron Brown expanded the company’s scope Colleges, the Pacific Post-Secondary Edu- work while hidden from the spotlight. from strictly an insurance business to diversi- cational Council, the Western Association of Tragically, many of these workers, unbe- fying into three divisions: Atlanta Life Insur- Schools and Colleges, and the League of In- knownst to them, were exposed to cancer- ance Co., Atlanta Life Investment Advisors novation for Community Colleges. Accredita- causing doses of radiation during their em- and Jackson Securities. Atlanta Life Financial tion has been awarded by the Accrediting ployment. It has been a long, hard struggle for possesses $16 billion in policies and manages Commission for Community and Junior Col- many of these employees to get compensation $1 billion in assets. While achieving great leges and by the Western Association of from the Federal Government, and many of business success, Ron advocated that compa- Schools and Colleges since 1979. Additionally, them have passed away from the diseases nies have not only a responsibility to make a under the United States Vocational Education they contracted in service to their country. profit but to also get involved within its com- Act of 1946, 1963, and subsequent amend- One of these heroes was New Mexico State munity. Ron servw on corporate and civic ments, GCC has served as the State Board of Representative Ray Ruiz. Representative Ruiz boards. He was a big believer of providing op- Control for vocational education for Guam. was a LANL employee diagnosed with cancer portunities to children, sharing business expe- GCC has been a consistent leader in the re- as a result of his work for the lab. Tomorrow, riences with them and meeting with student gion for education. True to its mission to pro- May 9, marks the 4 year anniversary of his groups at the company headquarters. vide students with training for life-long learn- passing. From the time of his diagnosis to the Ron Brown accomplished much in his life. ing, GCC offers opportunities for specialized time of his passing, Representative Ruiz Through the many fruits of his labors from a learning through programs such as English as worked tirelessly for a Special Exposure Co- life that was cut too short, Ron’s impact will a Second Language, Adult Basic Education, hort (SEC) designation for LANL to ensure live on. With his passing, Atlanta has lost a General Education Development (GED) prepa- that the workers diagnosed with cancer did not figure of good and of progress. ration and testing, and an Adult High School have to face the same impossible burden of proof as he did—to convince the government f Diploma. During this 30th anniversary, I join the peo- that their work was responsible for their ill- RECOGNIZING THE 30TH ANNIVER- ple of Guam in recognizing the foresight and ness. Following his passing, Representative Ruiz’s SARY OF THE GUAM COMMUNITY vision of GCC’s past presidents: Dr. wife, Harriet, not only was elected to fill her COLLEGE Herominiano delos Santos, John T. Cruz. Jose husband’s seat in the State Legislature, but Ramos, Peter Nelson, Dr. Stanley B. Malkin, carried on the work to secure SEC designation and Dr. John C. Salas. We also recognize the HON. MADELEINE Z. BORDALLO for the workers at LANL. While there was an OF GUAM current and past chairs of the Board of Trust- initial, narrow SEC approved to cover a very ees: Gina Y. Ramos, Juan Tenorio, Charles IN THE HOUSE OF REPRESENTATIVES small class of workers at the lab, the Ruiz’s Thursday, May 8, 2008 Spero, Dr. Antonio Yamashita, Dr. John C. work, and the work of many others, came as Salas, Richard Tennessen, Jose Munoz, close to realization as it had to date when on Ms. BORDALLO. Madam Speaker, I rise Atanacio T. Diaz, Greg Perez, and Adolpho today to recognize the achievements of the July 22, 2007 a much broader SEC designa- Sgambelluri. The vision of these individuals tion for LANL became effective. Guam Community College (GCC) and to con- has culminated today into the leadership of gratulate the institution on the occasion of its The SEC covers hundreds of workers and president Mary Ann Y. Okada, vice president their survivors diagnosed with radiogenic can- 30th anniversary. The Guam Community Col- of academic affairs John R. Rider, Ed.D., and cers who worked at the lab from March 15, lege, established in November 1977 by Guam vice president of administrative services John 1943 through December 31, 1975. While this Public Law 14–77, became our premier institu- C. Camacho. was an incredibly important development, and tion for vocational, skilled trade and technical With the commitment, dedication, and lead- one that was long overdue, there are many education when it assumed the programs and ership of Guam Community College’s officers, workers who should be included in this SEC, missions of its predecessor, the Trade and board of trustees, faculty, and students, GCC but are not. Technical High School and the Vocational has become a symbol of the possibilities that I know one worker, Madam Speaker, who High School of the Guam Department of Edu- exist within our island and our region. The col- suffers from radiogenic cancer, but just falls a cation. lege blends the talent and expertise of our few months short of the recently enacted SEC GCC’s leadership at both secondary and government agencies, businesses and indus- because he does not meet the requirements post-secondary levels is realized through its tries, community groups, and technical training for number of days worked through 1975. Ex- offering of over 50 courses of study in voca- establishments on Guam. These valuable and tend the SEC further, however, and he would tional programs, adult and continuing edu- strategic partnerships have increased trade certainly qualify for compensation. cation, community education, and short-term and technical capabilities in the community This is particularly troubling considering specialized training. Designed to target stu- leading to greater opportunities and success NIOSH has already conceded that doses can- dent populations within the Asia-Pacific Rim for its students and our islands. not be reconstructed for workers through and the Micronesia region, GCC courses pre- On behalf of the people of Guam, I would 1975, but there are employees such as the pare students through job development and like to recognize the 30 years of education one I just referred to who are denied com- training based on community needs and trade and community service of the Guam Commu- pensation because of the cutoff date. NIOSH demands. nity College. I commend and congratulate can no more reconstruct doses for employees The small communities within the region, them on this milestone anniversary. of the lab in January 1976 than they can for and the distance from mainland learning insti- f employees of the lab in December of 1975. tutions, are contributing factors to the GCC’s Yet post-1975 claimants are forced to undergo mission. With a diverse offering in curriculum INTRODUCTION OF THE RAY RUIZ dose reconstruction during a period for which and training programs, the college caters to SPECIAL EXPOSURE COHORT ACT NIOSH concedes information is not available. these communities by offering ease of access That is why today I am introducing the Ray to higher education. The main college cam- HON. TOM UDALL Ruiz Special Exposure Cohort Act to both pus, located in Mangilao, Guam, accommo- OF NEW MEXICO honor the late Representative Ruiz, and to dates a population of 2,000 students. Off-cam- IN THE HOUSE OF REPRESENTATIVES also help fully realize his and his wife’s work pus and satellite options allow for distance to provide compensation to all employees who learning, and on-campus courses equip stu- Thursday, May 8, 2008 contracted illnesses from radiation exposure at dents with expert and on-the-job training Mr. UDALL of New Mexico. Madam Speak- LANL. This legislation would expand the cur- through partnerships with Guam businesses, er, I have the honor of representing the Los rent LANL SEC to cover claimants at the lab organizations, and government entities. Alamos National Laboratory, which, throughout up to the present so that any worker diag- Through internships and apprenticeships, its history, has played a critical role in keeping nosed with the illnesses stipulated under the

VerDate Mar 15 2010 07:34 Nov 09, 2010 Jkt 069102 PO 00000 Frm 00007 Fmt 0689 Sfmt 9920 E:\BR08\E08MY8.000 E08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD May 8, 2008 EXTENSIONS OF REMARKS, Vol. 154, Pt. 6 8375 current SEC and who meets a required 250 COMMEMORATING DUANE Fame. Just last month, Duane received the aggregated work days at LANL are covered. MUNFORT HILL OF UKIAH, CALI- prestigious National NeighborWorks Associa- The important national security work being FORNIA FOR HIS OUTSTANDING tion’s 2008 Lifetime Achievement award conducted at the lab did not stop on Decem- CONTRIBUTIONS TO AFFORD- Madam Speaker, Duane Hill has earned the ber 31, 1975, and sadly, neither did the harm- ABLE HOUSING respect of his colleagues and community. Through visionary leadership, technical exper- ful exposures to radiation that has caused tise and quiet persuasion, Duane Hill has in- many of these cancers. Post-1975 claimants HON. MIKE THOMPSON vented, built and sustained the community de- have done the same work and been diag- OF CALIFORNIA IN THE HOUSE OF REPRESENTATIVES velopment movement in rural Northern Cali- nosed with the same illnesses. These fornia. For these reasons and for the lasting radiogenic cancers are not constrained by cal- Thursday, May 8, 2008 impact RCHDC continues to have in rural endar years, and nor should be the com- Mr. THOMPSON of California. Madam Northern California, it is appropriate that we pensation to employees and their families. Speaker, I rise today to honor Duane Hill, af- honor Duane Munfort Hill. fordable housing trailblazer and friend, upon Madam Speaker, claimants and their fami- f his retirement after 33 years as founder and lies have made great strides in achieving executive director of Rural Community Hous- NATIONAL CHILDCARE PROVIDER some small measure of justice from the Fed- ing Development Corporation. Based in Ukiah, APPRECIATION DAY eral Government. There are many, however, Mendocino County, RCHDC is Northern Cali- who continue to fight the battle not only with fornia’s largest rural nonprofit housing devel- HON. BARBARA CUBIN their illnesses, but with the government simul- opment organization. OF WYOMING taneously. The EEOICPA program was de- Duane Hill recognized the overwhelming IN THE HOUSE OF REPRESENTATIVES signed to put the burden of proof on the gov- need for affordable housing in rural areas Thursday, May 8, 2008 ernment, not on the claimant. Unfortunately, when cities were receiving substantial housing that has not been the way the program is op- subsidies and few resources were being dis- Mrs. CUBIN. Madam Speaker, I rise to rec- erating. The SEC designation for LANL was tributed in rural areas. He assembled a board ognize May 9th 2008 as National Childcare of influential volunteers and embarked on a Provider Appreciation Day. Started in 1996 by an important step towards rectifying this situa- campaign of community awareness and public a group of volunteers, this is an occasion to tion, but the Ray Ruiz Special Exposure Co- education that led to the incorporation of the recognize the tireless efforts of providers who hort Act will help provide much deserved com- Rural Communities Housing Development care for the children of working parents. pensation to the many other cold war heroes Corporation in 1975. Today, I join a chorus of state and local gov- who have tragically fallen through the cracks. Under Duane Hill’s leadership, RCHDC ernment proclamations, business and commu- I urge my colleagues to support this legisla- grew from its original $500 investment and nity events and the personal acknowledgment tion. staff of two to its current $3.3 million operating of providers by the parents themselves. budget with assets worth more than $200 mil- It takes a special kind of person to work in f lion. The agency has built 19 developments the childcare field, which is so critical to qual- from the ground up that together provide 528 ity family life and the early childhood develop- TRIBUTE TO WAPSIE VALLEY affordable rental apartments. By purchasing ment of millions of Americans. Our Nation’s WARRIORS nine large housing developments, RCHDC childcare providers are all too often unsung also preserved 400 units of rental housing that heroes, making the recognition of National were in danger of conversion to market-rate. Child Provider Appreciation by this body that HON. BRUCE L. BRALEY The agency has provided first-time home- much more important. buyers with more than 350 self-help homes in Childcare is also an important component of OF IOWA 30 subdivisions scattered throughout rural our Nation’s economy. The National Child IN THE HOUSE OF REPRESENTATIVES Northern California, and has 126 more in de- Care Association has estimated that there are velopment. RCHDC now manages 1,000 af- nearly 2.8 million childcare providers in the Thursday, May 8, 2008 fordable housing units and serves between United States and that nearly 12 million under 1500 and 2000 people annually. The agency age 5 are in their care. Moreover, healthy fam- Mr. BRALEY of Iowa. Madam Speaker, I also has $30 million worth of future projects in ilies contribute immeasurably to healthy work- rise today to recognize the outstanding results the pipeline. In 2008, RCHDC will complete places. achieved by the Wapsie Valley Warriors foot- rehabilitation of 144 new units in Del Norte Many regions in my home State of Wyoming ball team at the State Football Tournament in County, one of the most underserved areas of are experiencing population increases due to Cedar Falls this past fall. the State, as well as an additional 50 units in growth in the energy sector of our economy. Falling short in last year’s championship Humboldt County. In Kelseyville, RCHDC’s Like other aspects of Wyoming’s infrastruc- game, the Warriors were determined to not let new farm worker housing will not only provide ture, Wyoming’s childcare community is being agricultural workers with a suitable place to challenged by this growth and the increased history repeat itself once again. The top live, but will also help to ensure the viability of demand for childcare services. I am proud to ranked Warriors (13–0) would not disappoint, agriculture as an economic, employment and recognize Wyoming’s childcare providers for pushing to a 22–14 win over the Lawton- cultural resource for Lake County. their valuable contribution to Wyoming’s com- Bronson Eagles. For twelve Warrior seniors, it Duane’s steadfast resolve to see projects munities in this time of transition. didn’t get much better than that. through to completion, coupled with his un- With that, I commend our Nation’s childcare I congratulate the Warriors for winning the canny ability to build consensus and marshal providers and invite my colleagues to do the Iowa class A state championship. This hard both human and financial resources has cre- same on National Childcare Provider Appre- ated an inventory of affordable housing stock fought journey to the championship title gives ciation Day. that has served as both a home and a spring- Wapsie its fourth state title in history and its f board to upward mobility for thousands of low- first since 1997. It is especially rewarding with income rural Californians. COMMENDING AMTRAK ON the added pressure of a number one ranking He is on the forefront of campaigns for NATIONAL TRAIN DAY from the season’s outset. housing bonds and community development Madam Speaker, I am extremely proud of funding. He built his own ‘‘self-help’’ home and HON. JAMES L. OBERSTAR the accomplishments of the Warrior football started a program for RCHDC employees to OF MINNESOTA team, both on and off the field, and I am do the same. Under Duane Hill’s leadership, IN THE HOUSE OF REPRESENTATIVES RCHDC has become nationally recognized as proud to serve them in Congress. an innovator in rural housing development. Thursday, May 8, 2008 The California Housing Consortium inducted Mr. OBERSTAR. Madam Speaker, I rise RCHDC into the Affordable Housing Hall of today to highlight the importance of passenger

VerDate Mar 15 2010 07:34 Nov 09, 2010 Jkt 069102 PO 00000 Frm 00008 Fmt 0689 Sfmt 9920 E:\BR08\E08MY8.000 E08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD 8376 EXTENSIONS OF REMARKS, Vol. 154, Pt. 6 May 8, 2008 rail in the United States and express my sup- America needs to look toward Amtrak as we often shares his expertise by giving personal port for Amtrak in conjunction with National address our growing transportation needs. The consultation to various organizations and busi- Train Day on May 10th, 2008. Department of Transportation describes the nesses. Shaundell also works closely with the National Train Day marks the 139th anniver- problem of congestion on our highways and in Urban Chamber of Commerce and the North sary of the ‘‘golden spike’’ being driven into the air as ‘‘chronic.’’ Amtrak removes almost Las Vegas Chamber of Commerce, playing a the ground at Promontory Summit, Utah, in eight million cars from the road annually. Air- vital role in advocating for small businesses. 1869. The ‘‘golden spike’’ bound the last tie ports are experiencing significant delays too, Madam Speaker, I am proud to honor connecting the last rail that united the Central with more than 400,000 flights departing or ar- Shaundell Newsome and would like to recog- Pacific Railroad with the Union Pacific Rail- riving late in 2006. Amtrak eases air conges- nize his small-business accomplishments with- road, connecting the United States by rail from tion by eliminating the need for 50,000 fully in the Las Vegas community. I would also like coast to coast. loaded airplanes each year. to congratulate him on receiving the Minority The transcontinental railroad was born Amtrak is also a substantially more environ- Small Business Champion of the Year for the thanks to the support of President Abraham mentally friendly mode of transportation than 2008 Small Business Awards. Lincoln. He, along with Civil War leaders, envi- automobiles or airplanes. According to the f sioned and planned the creation of the rail- World Resources Institute, rail transportation TRIBUTE TO DR. TAHIRA HIRA road. Not only did the completion of the rail- produces 57 percent less carbon emissions road result in the ability to deliver goods and than airplanes, and 40 percent less carbon people across the country, it ultimately bound emissions than cars. HON. TOM LATHAM the east with the west, further unifying the Madam Speaker, I lend my strong support OF IOWA IN THE HOUSE OF REPRESENTATIVES country as the divide between the North and to the commemoration of National Train Day the South was beginning to mend. on May 10, 2008, and encourage all of my Thursday, May 8, 2008 The transcontinental railroad was the first of colleagues to use this excellent opportunity to Mr. LATHAM. Madam Speaker, I rise today its kind. It was an engineering marvel com- reflect on the benefits that Amtrak and intercity to recognize Dr. Tahira Hira’s appointment to pleted with great precision and speed. The passenger rail provide to our Nation. President George W. Bush’s Advisory Council railroad was an engineering wonder and it set f on Financial Literacy. the example for how transcontinental railroads On January 22, 2008, President Bush es- would be built across Canada and Russia PAYING TRIBUTE TO SHAUNDELL tablished the new Advisory Council on Finan- some 20 to 25 years later. NEWSOME cial Literacy, chaired by Charles Schwab. Dr. Completion of the transcontinental railroad Hira is one of only 16 members appointed by created a new sense of wonder and enthu- HON. JON C. PORTER President Bush. The Council’s purpose is to siasm for discovery and entrepreneurship OF NEVADA help keep America competitive and assist the across the country. It set the stage for a great IN THE HOUSE OF REPRESENTATIVES American people in understanding and ad- migration of businessmen, created a new fron- dressing financial matters. The Council will Thursday, May 8, 2008 tier for those seeking a new way of life, en- work with the public and private sectors to abled faster movement of people and goods, Mr. PORTER. Madam Speaker, it is my dis- help increase financial education in schools as and provided the country with a great oppor- tinct pleasure to rise today to honor Shaundell well as for adults in the workplace. tunity to expand the economy. Newsome by entering his name in the CON- Dr. Hira came to Iowa State University in Today, we are witnessing a rebirth of pas- GRESSIONAL RECORD, the official record of the 1980. She is the executive assistant to the senger rail in America. In the same way that proceedings and debates of the United States university president and a professor of per- the transcontinental railroad was critical to our Congress since 1873. Today I pay tribute to sonal finance and consumer economics. Dr. Nation in the late 19th century, a strong na- Shaundell Newsome, President and CEO of Hira has been teaching and conducting re- tional passenger rail system is vital today. In Newsome Marketing Enterprises, for his role search in family financial management, con- order to strengthen intercity passenger rail in in promoting excellence in small business sumer credit, gambling, and consumer bank- this country, today I have introduced the ‘‘Pas- throughout the Las Vegas community. ruptcy since 1976. She has published approxi- senger Rail Investment and Improvement Act At the age of 14, Shaundell began his love mately 100 articles and book chapters and of 2008’’. for marketing while he was attending the High given approximately 200 national and inter- The National Railroad Passenger Corpora- School of Graphic Communication Arts. While national presentations in her field. Dr. Hira has tion, more commonly known as Amtrak, oper- he served 10 years in the United States Air also received various awards for her work and ates a nationwide rail network, serving more Force, he greatly enhanced his communication serves on several national committees and than 500 destinations in 46 States over 21,000 skills by becoming the Morale Welfare and boards. miles of routes, with nearly 19,000 employees. Recreations Coordinator for his squadron. Fol- Dr. Hira’s list of awards and accomplish- Amtrak recently marked the beginning of its lowing his service in the military, Shaundell ments represents the valuable resource she 38th year of operation. Our passenger rail joined Station Casinos’ Marketing Department, has provided to Iowa State University and fi- service has come a long way since its begin- where he helped to successfully launch the nancial education in America. She certainly nings in 1971, and has faced many challenges company’s popular Boarding Pass Rewards has earned her position on the President’s Ad- since, but continues to grow stronger with Program. He then went on to serve as the visory Council, and I know she will excel in each passing year. Despite uneven Federal in- marketing director at Sante Fe Station. Look- her special advisory role. vestment over the years, Amtrak has per- ing for a way to focus his attention on pro- I commend Dr. Tahira Hira for her long- severed, achieving many successes in im- viding practical yet ‘‘outside the box’’ mar- standing dedication and diligence to her pro- proved operating efficiency, increased rider- keting solutions for small businesses, fession and for her efforts to improve our Na- ship, and higher revenue. Shaundell founded Newsome Marketing Enter- tion’s financial literacy. I consider it an honor In fact, in FY 2007, Amtrak set a new rider- prises in 2006. to represent Dr. Hira in the U.S. Congress, ship record for the fifth year in a row, exceed- While working to continue his newly estab- and I wish her the best while serving on the ing 25.8 million passengers. At the same time, lished marketing firm, Shaundell was often President’s Council and in her future work. Amtrak increased ticket revenues by 11 per- recognized for his efforts to create profes- f cent to more than $1.5 billion, a figure that in- sional opportunities for others, particularly in CONGRATULATING NURSE SUSAN creased for the third straight year. These suc- the minority-business community. As a board COBB cesses are being enjoyed across Amtrak’s en- member for the 100 Black Men of Las Vegas, tire network. In FY 2007, Amtrak held 56 per- he focused on creating new economic devel- cent of the air/rail market between New York opment opportunities for the non-profit organi- HON. MICHAEL C. BURGESS OF TEXAS and Washington and 41 percent of the market zation. He also worked with Valley Center Op- IN THE HOUSE OF REPRESENTATIVES share between New York and Boston. This portunity Zone (VCOZ) to assist small minority shows that where Amtrak is provided the re- businesses within the enterprise zone by pre- Thursday, May 8, 2008 sources to succeed, it provides a trip-time senting workshops, including his well-known Mr. BURGESS. Madam Speaker, I rise competitive alternative to air and car. ‘‘Marketers Anonymous—A 12 Step Plan’’. He today to recognize Susan Cobb of Lewisville,

VerDate Mar 15 2010 07:34 Nov 09, 2010 Jkt 069102 PO 00000 Frm 00009 Fmt 0689 Sfmt 9920 E:\BR08\E08MY8.000 E08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD May 8, 2008 EXTENSIONS OF REMARKS, Vol. 154, Pt. 6 8377 Texas. Ms. Cobb has been named one of the uate with loan payments as far as the eye can Senate, these bills do not provide irrespon- Great 100 Nurses of 2008 by the Texas see. In an increasingly competitive society, sible and unnecessary tax breaks to home- Nurses Association, Districts Three and Four, higher education is a necessity. Paying for builders, nor do they include a tax incentive to and the Dallas-Fort Worth Nurse Executives. and completing a higher education degree purchase foreclosed properties that would like- She is a nurse at the Medical Center of must be a realistic possibility for everyone. ly increase the number of foreclosures. Lewisville. The great community colleges in Kansas, in I urge all my colleagues to support both bills The Medical Center’s mission is to consist- particular Highland Community College, make before us today, and vote for policies that will ently provide high quality health services, in- that a reality for many students. stem the tide of foreclosures and provide real formation and education in an environment Highland Community College has made a help to struggling families. If the Federal Gov- that is compassionate, professional, and re- commitment to providing a low-cost, high- ernment can provide a handout to Wall Street, sponsive to its patients, physicians, and asso- value education. With their leadership, we’ll we can certainly offer a hand up to families. ciates. Ms. Cobb is an excellent embodiment move closer to the day when every Kansas f of this which her passion and commitment student who wants to attend college can afford demonstrate. to do so and can receive a high quality edu- TRIBUTE TO PARTICIPANTS IN 2008 Each year this recognition is bestowed on cation that fits their needs as an individual. WE THE PEOPLE NATIONAL nurses who embody excellence in the science Highland Community College has served FINALS and art of nursing. The chosen honorees be- the State of Kansas and served it well. These long to an array of professional organizations words are a mere token of gratitude and can- HON. DENNIS MOORE and work in a wide variety of clinical special- not begin to repay the debt that we as Kan- OF KANSAS ties. This is the 18th consecutive year that the sans owe members of the Highland commu- IN THE HOUSE OF REPRESENTATIVES nity. Today, I congratulate Highland Commu- Texas Nurses Association, Districts Three and Thursday, May 8, 2008 Four, and the Dallas-Fort Worth Nurse Execu- nity College on 150 years of success. tives have recognized area nurses for their f Mr. MOORE of Kansas. Madam Speaker, compassion and dedication. The recipients will from May 3–5, 2008, more than 1,200 stu- SUPPORTING SOLUTIONS TO THE dents from across the country visited Wash- be honored at a gala event on Monday, May HOUSING CRISIS 12, 2008. ington, DC, to take part in the national finals Madam Speaker, I am honored to stand of We the People: The Citizen and the Con- today and recognize Susan Cobb. She pro- HON. FORTNEY PETE STARK stitution, the most extensive educational pro- vides an invaluable service to North Texas OF CALIFORNIA gram in the country developed to educate IN THE HOUSE OF REPRESENTATIVES each and every day, and I join the community young people about the U.S. Constitution and in thanking her for her devotion to saving Thursday, May 8, 2008 Bill of Rights. Administered by the Center for lives. It is a privilege to represent Susan, and Mr. STARK. Madam Speaker, I rise today to Civic Education, the We the People program all our fine nurses, in the 26th District of support two important pieces of legislation that is funded by the U.S. Department of Education Texas. will both keep families in their homes, and in- by act of Congress. f crease the supply of affordable housing. I am proud to announce that a group of out- After years of lax regulatory oversight driven standing students from St. Thomas Aquinas CONGRATULATING HIGHLAND by the discredited ideology of the Bush admin- High School in Overland Park, Kansas, COMMUNITY COLLEGE ON ITS istration and a rubber-stamp Republican Con- through their knowledge of the U.S. Constitu- 150TH ANNIVERSARY gress, our Nation is faced with a housing cri- tion, won the statewide competition, earning sis. Sub-prime loans, once the darlings of Wall the chance to come to our Nation’s capital and HON. NANCY E. BOYDA Street, are now adjusting upward and millions compete at the national level. OF KANSAS of families have lost their homes or are facing While in Washington, the students partici- IN THE HOUSE OF REPRESENTATIVES foreclosure. In just the first 3 months of 2008, pated in a three-day academic competition that simulates a congressional hearing in Thursday, May 8, 2008 over 113,000 foreclosure notices have gone out to families in California. President Bush which they ‘‘testify’’ before a panel of judges. Mrs. BOYDA of Kansas. Madam Speaker, I has responded by providing a $30 billion bail- Students demonstrate their knowledge and un- rise today to congratulate Highland Commu- out to Bear-Stearns, a major cause of the derstanding of constitutional principles as they nity College on 150 years of educating the mess in the first place. Today, the Democratic- evaluate, take, and defend positions on rel- good people of the state of Kansas. Chartered led Congress is proposing a real solution that evant historical and contemporary issues. It is in 1858, Highland Community College was the will assist real families, and all the President important to note that independent studies of first college in Kansas, and it has overcome has offered is a veto threat. the We the People program indicate that many adversities to remain prosperous and re- I support both the Neighborhood Stabiliza- alumni of this nationally-acclaimed program spected to this day. Highland Community Col- tion Act (H.R. 5818) and the Foreclosure Pre- display a greater political tolerance and com- lege offers a wonderful and necessary service vention Act (H.R. 3221). Together, they offer a mitment to the principles and values of the to students who are trying to make more out comprehensive approach that will protect fami- Constitution and Bill of Rights than do stu- of their lives. lies, stabilize home prices, and expand afford- dents using traditional textbooks and ap- Community colleges play an important and able housing options around the Nation. proaches. With various reports and surveys distinctive role in the American education sys- This legislation will allow homeowners that reveal the lack of civic knowledge and en- tem—they provide a world class education trapped in untenable mortgages to refinance gagement, I am pleased to support such an that is affordable and provides flexibility. High- into FHA-backed mortgages. Lenders and bor- outstanding program that continues to produce land Community College facilitates programs rowers must each take responsibility by low- enlightened and responsible citizens. for many non-traditional students all over the ering the outstanding principal, and dem- Madam Speaker, the names of these out- state of Kansas through its outreach program. onstrating an ability to repay, respectively. Re- standing students from St. Thomas Aquinas It offers many night and weekend classes to quiring borrowers to provide a portion of re- High School are: those students whose lives can not be built sale profits to the government further lessens Hillary Bourquin, Rosemarie Boyles, Annie around the typical student’s schedule. A de- taxpayer exposure. The legislation also pro- Clark, Michelle Coombs, Alexander Davidson, gree from Highland Community College will vides loans and grants to states to acquire Blair Donahue, Maria Dudley, Jillian Falbre, take any student far in life, and for some, it foreclosed properties and turn them into af- Lauren Hannifan, Lisa Hartung, Sarah Her- will be the push they needed to pursue addi- fordable units for both sale and rent. Finally, mes, Veronica Holton, Erin Jolley, Emily tional degrees. this bill includes tax provisions aimed at as- Majerie, Arica Maurer, Kirsten Milliard, The- In Kansas, we believe that college should sisting first-time homebuyers, easing the bur- resa Nelson, Angela Nigro, Daniel Obermeier, open doors, not close them, and that edu- den of property tax bills, and expanding fi- Courtney Pigott, Rose Reynolds, Amanda cation should create opportunities, not debt. nancing of low-income housing projects. Schnieders, Jonathan Shoulta, Emily Stone, Sadly, instead of graduating with hope for their Just as important is what this legislation David Sullivan, Bryan Thelen, Brittany future, many of today’s college students grad- does not do. Unlike the bill passed by the Wilderson, and Jerry Wohletz.

VerDate Mar 15 2010 07:34 Nov 09, 2010 Jkt 069102 PO 00000 Frm 00010 Fmt 0689 Sfmt 9920 E:\BR08\E08MY8.000 E08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD 8378 EXTENSIONS OF REMARKS, Vol. 154, Pt. 6 May 8, 2008 I also wish to commend the teachers of the the name of her father-in-law, Edward A. Rath, dependents. After 6 years of service, half of class, Tim Lillis and Amy Person, who are re- Erie County’s first-ever chief executive. Her the benefit may be transferred and after 12 sponsible for preparing these young constitu- son, Edward A. Rath III, is the third generation years of service 100 percent may be trans- tional experts for the statewide competition of family public servants, a member of the Erie ferred to a spouse or dependent children. and national finals. Also worthy of special rec- County Legislature, elected to a seat once Allow servicemembers to use up to $6,000 ognition is Lynn Stanley, the State coordinator, held by his mother. per year of G.I. Bill education benefits to repay and Ken Thomas, the district coordinator, who Despite all her achievements in public life, I Federal student loans. are among those responsible for implementing know from my long friendship with the Rath Create a matching program to help more the We the People program in my State. family that Mary Lou’s greatest accomplish- veterans graduate debt-free. Up to an addi- I congratulate these students on their ex- ment is her loving family, her children Allison, tional $3,000 per year could be paid by the ceptional achievements at the We the People Melinda, and Ed, and her eight grandchildren. Department of Veterans Affairs in return. national finals. She is very deserving of the honor she will Allow access to Montgomery G.I. Bill bene- f receive from the YWCA on May 10th, 2008 for fits for service academy graduates and Senior her contributions to Batavia and Genesee Reserve Officers’ Training Corps officers who TRIBUTE TO STATE SENATOR County. continue serving. MARY LOU RATH Madam Speaker, in recognition of her tre- Build on existing educational benefits pro- mendous service of more than 30 years, for gram to ensure rapid implementation with HON. THOMAS M. REYNOLDS her leadership, dedication and lasting legacy minimal additional administrative costs. OF NEW YORK she leaves, I ask this Honorable Body to join On behalf of the over 30 million veterans in IN THE HOUSE OF REPRESENTATIVES me in honoring my friend and colleague, New the United States who stand to benefit, I am York State Senator Mary Lou Rath, in grateful very excited to introduce this legislation. While Thursday, May 8, 2008 appreciation for her distinguished career and we can never fully repay the service and sac- Mr. REYNOLDS. Madam Speaker, it is with devoted service to the people of Western New rifice so many brave Americans have made great pride that I rise today to honor a re- York. and continue to make on behalf of our nation, spected and dedicated legislator, a valued ed- f we must ensure they receive access to the ucator and community leader, and close con- kind of benefits they deserve. THE ENHANCEMENT OF RECRUIT- fidante and dear friend who, for more than f three decades, has dedicated her life and MENT, RETENTION, AND READ- service to her neighbors in Western New York. JUSTMENT THROUGH EDUCATION IN RECOGNITION OF LIEUTENANT State Senator Mary Lou Rath is one of the ACT OF 2008 COLONEL GARRY W. MCCLENDON most respected legislators in our area—proof that elected service is a noble calling. Mary HON. ADAM H. PUTNAM HON. MIKE ROGERS Lou has always been the voice of reason, and OF FLORIDA OF ALABAMA proved time and time again that her only IN THE HOUSE OF REPRESENTATIVES IN THE HOUSE OF REPRESENTATIVES agenda was to serve and fight for the people Thursday, May 8, 2008 Thursday, May 8, 2008 of Western New York. Mr. PUTNAM. Madam Speaker, we are for- Mr. ROGERS of Alabama. Madam Speaker, After spending 30 years in public service, ever indebted to the brave soldiers, sailors, I respectfully ask the attention of the House Mary Lou announced recently that she will re- airmen, and marines of our Armed Forces who today to pay recognition to LTC Garry tire from the New York State Senate. She have fought and continue to fight for our free- McClendon. Lieutenant Colonel McClendon surely be missed, leaving behind a legacy of dom. Though we can never truly repay the has served our Nation in the Army for 25 fighting for quality health care, serving as a debt we owe them, we have a solemn duty to years and as commanding officer for the An- champion for women across New York State, honor their service with more than mere niston Defense Munitions Center and Holston and taking on issues big and small that made words. Army Ammunition Plant since June 2006. a real difference in the lives of those she rep- One important benefit for veterans is the Mr. McClendon’s distinguished career began resented. Montgomery G.I. Bill, which provides funding in 1983 as an Ammunition Stock Control and Mary Lou was first elected to public office in for education and training to veterans after Accounting Specialist. Subsequent assign- 1977 as an Erie County Legislator and earned their service. Since its inception, the Mont- ments with the Army included tours of duty in both the support of her constituents and the gomery G.I. Bill has helped millions of service Southwest Asia, Fort Bragg, NC, Germany, trust of her colleagues, who elevated her to members. But, Mr. Speaker, it’s long past the Fort Lee, Virginia, and Camp Able Sentry in the post of Republican Leader. In 1994, she time when we should modernize this important Macedonia. became the first woman ever to serve the 61 law. On behalf of us all, I would like to thank st District in the New York State Senate. In Today, with my colleagues, I introduced The Lieutenant Colonel McClendon for his 25 the State Senate, Mary Lou earned a reputa- Enhancement of Recruitment, Retention, and years of service to the United States, and wish tion as a hard working and compassionate Readjustment Through Education Act of 2008. him all the best in his next endeavors. representative. This legislation enhances the existing G.I. Bill f Mary Lou also earned a statewide reputa- by improving education benefits for tion for her efforts to reform Medicaid and cur- servicemembers, veterans, and members of RISING ABOVE THE GATHERING tail the sky-rocketing costs of health care. Ad- the Guard and Reserve. The legislation will STORM: TWO YEARS LATER ditionally, she worked hard to advance her help more military personnel attend college smart growth initiatives, end domestic violence debt free, and allow them to transfer their edu- HON. FRANK R. WOLF and ensure that all children have a quality cation benefits to their spouse or children. It OF VIRGINIA education. also bolsters recruitment and retention efforts, IN THE HOUSE OF REPRESENTATIVES In 1997, Mary Lou was inducted in the encouraging servicemembers to continue their Thursday, May 8, 2008 Western New York Women’s Hall of Fame, a military careers in support ofthe all-volunteer fitting tribute for a woman who has been such force of today. Specifically this legislation Mr. WOLF. Madam Speaker, I rise today to a positive role model and inspiration to women would: share a speech I gave to the National Acad- across New York. Not only did Mary Lou have Provide an immediate increase in education emies’ convocation on April 29, 2008 on the a distinguished professional career, but along benefits for active duty personnel to $1500 a second anniversary of the release of the with her husband, the late Supreme Court month, and to improve retention, those bene- ‘‘Gathering Storm.’’ I was honored to have had Justice Edward A. Rath, Jr., raised a wonder- fits increase to $2000 a month after 12 or the opportunity to address some of our na- ful family in whom she instilled the values of more years of service. tion’s top business, academic, and scientific public service. Significantly increase benefits for members leaders at the convocation. The name Rath not only invokes the best in of the National Guard and Reserves. As you may recall, the report painted a very public service, it is, in a word, iconic in our Provide transferability, allowing service bleak picture of our Nation’s high-tech work- community. The County Office building bears members to transfer their education benefits to force, innovation, and global competitiveness.

VerDate Mar 15 2010 07:34 Nov 09, 2010 Jkt 069102 PO 00000 Frm 00011 Fmt 0689 Sfmt 9920 E:\BR08\E08MY8.000 E08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD May 8, 2008 EXTENSIONS OF REMARKS, Vol. 154, Pt. 6 8379 It prompted swift congressional action to au- form the most basic mathematical computa- themselves into thinking that we have a thorize new funding and resources to bolster tions. long-term plan to bring our finances into our science and high-tech workforce, culmi- I worry that half of the money we made order. nating with the enactment of the America available for grants for college students in The long-term has arrived. The next Presi- STEM fields is going unused. dent will have to address this. COMPETES Act last fall. I worry that our edge in aerospace research It reminds me of the refrain from song- However, I am concerned that we still have is in danger. Our historic prominence in writer Paul Simon’s ‘‘The Boxer’’: ‘‘Man much work to do to secure our economic fu- automobiles and electronics manufacturing hears what he wants to hear and disregards ture in this global marketplace. And we will has long since eroded; we cannot afford to the rest.’’ That could describe Congress’s and never be competitive if we cannot get the Fed- lose our aerospace leadership. Wall Street’s reaction, or lack thereof, to eral Government’s finances in order and begin I worry about losing competitiveness with the financial crisis staring America square to reduce our dependency on foreign debt. China—they may even beat us back to the in the face. Madam Speaker, my address as prepared moon. We can’t afford to put off reform anymore. to the ‘‘Gathering Storm’’ convocation follows: I worry about the country my children and With every year that Congress prolongs grandchildren will live in if we fail to deal making the difficult decisions to deal with Thank you for the opportunity to address this gathering. As the fourth of five ‘‘con- with this. this runaway mandatory spending—the por- gressional perspectives’’ on the program this But you don’t need me to rattle off any tion of the federal budget available to fund morning, I’m reminded of the old Congress- more statistics. The real experts will help discretionary programs decreases. man Mo Udall quote: ‘‘Everything has been put these trends and developments in con- And just so we’re clear: nearly every said but not everyone has said it.’’ text later today. science, technology, research, manufac- First, I want to thank you all for your ef- Instead, I’d like to talk about a different, turing, and competitiveness program we dis- forts. I am pleased that so many of our na- yet inextricably linked, issue that is further cuss here today is funded through discre- tion’s science, business, and government undermining our competitiveness. To turn tionary dollars. leaders have once again gathered to discuss Udall’s phrase, I would like to talk about In 1962, mandatory spending—Social Secu- this most pressing of issues challenging the something that hasn’t been said, in hopes rity, Medicare, Medicaid, and debt interest United States. that everyone will say it. payments—comprised less than one-third of Perhaps the greatest success of the ‘‘Gath- While we are working hard to stave off the the federal budget. Today it’s doubled to ering Storm’’ report thus far is the tremen- ‘‘Gathering Storm,’’ we are losing sight of over two-thirds of the budget. dous awareness and urgency it has raised the tsunami right off our coasts—a tsunami The Office of Management and Budget among the American people. of debt. Former Comptroller General David projects that in less than 5 years, non-de- It was only a few years ago, in 2005, that Walker calls this tsunami powerful enough fense discretionary spending will fall to less Rep. Vernon Ehlers, Rep. Sherwood Boehlert, to ‘‘swamp our ship of state.’’ than 15 percent of the federal budget. And and I went to the White House to urge the This is particularly relevant as we consider the competitiveness programs we’re working administration to make this a priority. the state of our nation’s competitiveness. If so hard for are but a small fraction of that. With the support of the councils of Na- we can’t pay for our current obligations, how Because mandatory programs get funded tional Academies of Science and Engineer- can we begin to afford the resources we will first, we will have to fight harder for fewer ing, we announced a national summit on need to compete globally in the twentyfirst dollars to fund this important initiative. science, technology, engineering, and manu- century? Without mandatory spending reform, we facturing at the Department of Commerce These two efforts go hand-in-hand. simply won’t be able to fund the necessary which helped lead to the creation of the America is $9 trillion deep in federal debt, increases in competitiveness programs with- Committee on Prospering in the Global and the Government Accountability Office out significant cuts in other discretionary Economy of the 21st Century. has estimated $54.3 trillion in unfunded programs. I want to thank Norm Augustine and the promised benefits if we don’t change our cur- Clearly, this is a pressing economic issue, other members of the committee who helped rent course. That’s trillions, with a ‘‘T’’. as the first baby boomer has just signed up educate me to the critical importance of this The Social Security and Medicare Trustees for promised Social Security benefits and as I served as Chairman of the Appropria- reports issued last month only reinforce the our nation’s longterm IOUs are coming due. tions Subcommittee funding these programs. dire condition of our fiscal health. Both re- Just recently, Moody’s Investment Service I appreciate President Bush for laying out ports make very clear that we must address indicated that the U.S. triple-A bond rating the American Competitiveness Agenda in his these tremendous shortfalls very soon. will be at risk by 2018. Standard and Poor’s 2006 State of the Union and his support for The U.S. dollar is dropping like a rock—it Investment Service indicated that it may be more funding this year. lost 15 percent against the Euro last year. as early as 2012; and if present trends con- Congress followed suit and adopted many Gasoline reached $120 per barrel this week. tinue would plummet to junk-bond status by recommendations from the ‘‘Gathering What will happen when the well runs dry 2025. Storm’’ report into the America COMPETES and we no longer have money for the vital What will that mean to our economy? Act which was signed into law last year. technology programs that we’re discussing Should the U.S. lose its AAA rating in a I appreciate the leadership of Science Com- today? few years, the cost of borrowing for both the mittee Chairman Bart Gordon and Ranking How will we remain competitive when Treasury and for U.S. private businesses Member Ralph Hall in the House, as well as there is no money to fund science and math would significantly increase. It would also Sen. Lamar Alexander in the Senate for see- education initiatives? Our children can’t increase the likelihood of a devastating cap- ing this bill through. compete in the global marketplace if we ital flight. This is a very real risk to our eco- It is rare in Washington that good ideas can’t provide U.S. students with a first-class nomic growth and global competitiveness. move so far, so fast. And it is in many ways education. Again, this debt has very real implications. a testament to the people in this room who How will we remain competitive when More than $2.6 billion a day is needed to fund tirelessly worked to educate Congress, the there is no money to fund medical research? our budget shortfall, which has left nearly 40 Administration, business community, and Without discretionary funding to develop percent of our domestic economy in foreign the American people. There is so much more work to be done. We cutting-edge technology, advance research, hands. have been successful in raising public aware- and perform clinical trials, we will not be These IOU’s are held by foreign countries— ness of these issues, but we have barely able to make critical strides toward cures for with significant shares held by non-demo- begun to turn the page in meeting our work- cancer, Alzheimer’s, autism, and other dev- cratic countries like China and Saudi Ara- force and innovation demands. astating diseases. bia. We should care that countries that do I worry that we still graduate half the How will we remain competitive when not share our democratic values have grow- number of physicists that we did in 1956—be- there is no money to fund our infrastruc- ing leverage over the U.S. fore Sputnik spurred our last ‘‘great awak- ture? Borrowing hundreds of billions of dollars ening’’ in science and engineering. How will we remain competitive when on the Chinese and Saudi credit cards puts I worry that one-third to half of those we there is no money to pay for the National not only our future economy, but also our graduate with science and engineering de- Science Foundation and NASA? America will national security at serious risk. grees are foreign students; and most of them no longer be able to provide leadership and Ironically, the Chinese will be some of our will return to their home countries rather inspiration to the rest of the world. greatest economic and technology competi- than applying their skills in the U.S. These bleak scenarios only scratch the sur- tors in the twenty-first century. How well I worry that U.S. patents are down and our face of how concerned we should be about will we be able to compete when we depend companies are spending more on tort legisla- America’s future. These are the realities we on their credit to fund our programs? They tion than on research and development. face. have become our banker. I worry that tests still show that one-third Sadly, much of this falls on deaf ears in This is also a moral issue. Last month, of U.S. students lack the competency to per- Washington. So many bright people delude Pete Peterson penned an editorial that ran

VerDate Mar 15 2010 07:34 Nov 09, 2010 Jkt 069102 PO 00000 Frm 00012 Fmt 0689 Sfmt 0634 E:\BR08\E08MY8.000 E08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD 8380 EXTENSIONS OF REMARKS, Vol. 154, Pt. 6 May 8, 2008 in Newsweek. He ends by quoting Dietrich And the media needs to do a better job cov- Amanda, who is currently a sophomore at Bonhoeffer, the German pastor who was in- ering it. We should insist on a presidential Liberty Home School, also received the Billy strumental in the resistance movement debate devoted to these issues. Mitchell Award and served as Color Guard against Nazism. Bonhoeffer said, ‘‘The ulti- I am confident that, with your support, we mate test of a moral society is the kind of will succeed and it may well lead to a renais- Commander in the North Central Region world it leaves to its children.’’ sance in America—a renaissance in innova- Cadet Competition last year for the Des I can’t help but wonder what sort of future tion, education, and economic development. Moines Metro Cadet Squadron. today’s partisan Washington is leaving to f The Cadet of the Year award honors our children and grandchildren. Amanda’s dedication and commitment during Fortunately, we still have options—if we PAYING TRIBUTE TO STEPHANIE her participation in the Civil Air Patrol’s Cadet act soon. TAVARES Programs. The Iowa Wing of the Civil Air Pa- I am truly impressed by the bipartisan and trol, which is the official auxiliary of the U.S. broad ranging coalition that the ‘‘Gathering Storm’’ report has assembled in its cause. I HON. JON C. PORTER Air Force, is a nonprofit organization with believe we can replicate this success in ad- OF NEVADA more than 390 officers and cadets in Iowa. dressing entitlement reform, tax policy, and IN THE HOUSE OF REPRESENTATIVES The Civil Air Patrol’s Cadet Programs provide fiscal solvency. We need to replicate the Thursday, May 8, 2008 youth opportunities to reach their full potential ‘‘Gathering Storm’’ effort to deal with the as they study four subject areas: aerospace Mr. PORTER. Madam Speaker, it is my dis- issue of our debt. education, physical training, leadership, and tinct pleasure to rise today to honor Stephanie For the past year, Congressman Jim Coo- moral and ethical values. Tavares by entering her name in the CON- per, a Democrat from Tennessee, and I have I know that my colleagues in the U.S. Con- been working closely together on the Cooper- GRESSIONAL RECORD, the official record of the gress join me in commending Cadet Lieuten- Wolf SAFE Commission Act. It has since proceedings and debates of the United States ant Amanda Veen for her leadership and dedi- garnered over 80 bipartisan cosponsors, in- Congress since 1873. Today I pay tribute to cation to representing the Iowa Civil Air Patrol. cluding Republican leadership in the House Stephanie Tavares, reporter for In Business I consider it an honor to represent Amanda as well as the chairs of the Democratic Blue Las Vegas for her achievements in reporting Dog Coalition. and her family in Congress, and I wish her the on various small business legal issues within The Heritage Foundation, Brookings Insti- best in her future endeavors. tution, Concord Coalition, and former Comp- the Southern Nevada community. Stephanie grew up in a small town that did troller General David Walker helped us draft f this and it is supported by David Broder and not have access to many big-city newspapers, David Brooks. but while she was still in high school, she COMMENDING THE HARD WORK OF Modeled after the base-closing process, the strongly identified with a local television news OUR NATION’S NURSES ON THIS, bill would create a bipartisan 16-member anchor inspiring her to pursue a career in jour- NATIONAL NURSES WEEK commission to review entitlement spending, nalism. tax policy, debt, and all other federal spend- She worked as a news clerk for her college ing. HON. CHARLES B. RANGEL newspaper, which helped to launch her love The Commission will look beyond the Belt- OF NEW YORK for writing, editing, and the news. For the past way for solutions, holding at least 12 town IN THE HOUSE OF REPRESENTATIVES meetings—one in each of the nation’s Fed- three years, Stephanie has reported on small eral Reserve districts—over the span of 12 business issues for In Business Las Vegas. Thursday, May 8, 2008 months in order to hear directly from the She is credited with not only covering busi- Mr. RANGEL. Madam Speaker, I rise today American people. ness issues, but with being an advocate for Everything must be on the table—includ- to applaud the incredible efforts our nurses small business as well, learning different per- pour into their grueling workdays, carrying out ing tax policy. spectives, policies, and the needs of the small If anyone has another viable plan to ad- their duties to the great benefit of this coun- dress our entitlement tsunami, we are anx- business community. She also reports on utili- try’s health and medical care system. To- ious to hear it. But it has to be able to pass. ties and environmental issues for the maga- gether, nurses represent the largest share of Doing nothing is not acceptable. zine. health care professionals in the field, boasting And just like the base-closing process, the In addition to her professional work, Steph- numbers eclipsing 2,500,000—but that’s be- SAFE Commission Act would require and up- anie donates much of her time and talent to coming increasingly not enough. Facing a or-down vote on the Commission’s proposal— several professional and community organiza- ensuring that Congress finally considered a shortage that demands a million new nurses tions. She is involved with the National Asso- by 2016, the current crop of professionals comprehensive solution to this great chal- ciation of Business Journalists, the National lenge. have shouldered, and will continue to shoul- So far, Rep. Cooper and I have reached out Association of Hispanic Journalists, and the der, the extra work and hours of properly car- to every Member of Congress, the President International Studies Association. Additionally, ing for our elderly and infirmed. For this, and and his potential successors, Fortune 500 she recently served on a panel of the 2007 so much more, nurses deserve a generous leaders, small business owners, think tanks, Women of Color Conference. On the local helping of our gratitude and the highest of rev- thought leaders, and the religious commu- level, Stephanie is a supporter of Adoption Ex- erence, not just this next week dubbed ‘‘Na- nity. change, Henderson Libraries, and Henderson tional Nurses Week,’’ but all year round. And today I’m reaching out to you—our Parks and Recreation. science, technology, engineering, manufac- We can show them that we care by paying Madam Speaker, I am proud to honor tribute to those nurses serving in Iraq and Af- turing and workforce development leaders. Stephanie Tavares for her achievements in I ask for your support in this endeavor so ghanistan—by bringing them and our heroic that it may put us back on track financially, journalism for small businesses within the Las troops home after a job well done. We can just as the ‘‘Gathering Storm’’ report Vegas community. I would also like to con- show them that we care by outfitting them with spurred us to fix our nation’s education and gratulate her on receiving the Small Business a health care system that is affordable, uni- competitiveness programs. Journalist of the Year at the 2008 Small Busi- versal, and driven less by profits and more by William Wilberforce, who, in his first ness Awards. compassion and humanitarianism. We can speech in the British Parliament in 1789 de- f scribing the evils of the slave trade, con- show them that we care by investing in the re- cluded by telling his colleagues, TRIBUTE TO AMANDA VEEN search, techniques, and technologies that ‘‘Having heard all this you may choose to promise to one day cure age-old, debilitating look the other way, but you can never again HON. TOM LATHAM diseases that plague millions—and not play say that you did not know.’’ politics when our citizens’ livelihoods are at OF IOWA Not one of us can say we do not know stake. IN THE HOUSE OF REPRESENTATIVES about the nation’s long-term financial out- The Harlem Hospital Center serves my dis- look. Thursday, May 8, 2008 We know, and it’s on our watch to fix. trict as a powerful force for social progress, This must also be a part of this year’s pres- Mr. LATHAM. Madam Speaker, I rise today catering to the community’s health needs and idential debate. We need to make the next to recognize Cadet Lieutenant Amanda Veen training the next generation’s minority and fe- president understand that entitlement re- of Perry, Iowa for being named Cadet of the male physicians. The nurses there fight the form. Year by the Iowa Wing of the Civil Air Patrol. good fight, day in and day out, not often

VerDate Mar 15 2010 07:34 Nov 09, 2010 Jkt 069102 PO 00000 Frm 00013 Fmt 0689 Sfmt 9920 E:\BR08\E08MY8.000 E08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD May 8, 2008 EXTENSIONS OF REMARKS, Vol. 154, Pt. 6 8381 enough rewarded with the credit that they de- hope that his trial will be handled in a fair RECOGNIZING NU HIGH SCHOOL serve. I am honored to praise their achieve- manner, unlike that of Father Ly, who was BOYS BASKETBALL TEAM ments—and those of their colleagues all gagged, unable to speak at his own defense, across America—this week. and sentenced to 8 years in prison. HON. BRUCE L. BRALEY f So today I join the Vietnamese community OF IOWA in commemorating Vietnam Human Rights IN THE HOUSE OF REPRESENTATIVES VIETNAM HUMAN RIGHTS ACT 2007 Day and urging support for the continuing ad- vocacy efforts that are fighting for the most Thursday, May 8, 2008 HON. LORETTA SANCHEZ basic freedoms that we in the U.S. enjoy— Mr. BRALEY of Iowa. Madam Speaker, I OF CALIFORNIA freedom of speech, freedom of the press, free- rise today to recognize the outstanding results IN THE HOUSE OF REPRESENTATIVES dom of assembly, freedom of religion. These achieved by the NU High School Boys Basket- Thursday, May 8, 2008 freedoms do not exist in Vietnam. ball team at the Iowa State Boys Basketball I will continue working with my colleagues in tournament in Des Moines this past winter. Ms. LORETTA SANCHEZ of California. the Congressional Caucus on Vietnam and the The last quarter would see five lead Madam Speaker, as you may know, I have the Congressional Human Rights Caucus to ad- changes with the last lead change coming with privilege of representing the Vietnamese com- vance human rights for the people of Vietnam. two minutes left in the game. Travis Ellerbroek munity in Orange County—one of the largest And as a cosponsor of H.R. 3096, the Viet- hit an NBA range three-pointer to take the outside of Vietnam. nam Human Rights Act of 2007, I will continue lead for the final time and win the class 1A Human rights is an important issue to me to advocate for its passage with my col- State boys basketball title. and my Vietnamese constituents. Today, I leagues in the Senate. I am pleased that Sen- I congratulate the Panthers for winning the want to highlight the importance of continuing ator BARBARA BOXER held a hearing on this Iowa Class 1A State championship. This excit- to work for freedom and democracy in Viet- legislation last March. ing victory is the first for Coach Paul Elser nam, and to commend the advocates that are It is my hope that H.R. 3096 will be brought who wrapped up his first season with the Pan- committed to this cause. to the Senate floor for a vote. This would be thers. This year marks the 14th anniversary of the a clear message that Congress wants to see Madam Speaker, I am extremely proud of House-Senate Joint Resolution designating the Government of Vietnam get serious about the accomplishments of the Panther boys bas- May 11th as Vietnam Human Rights Day. As improving human rights conditions ketball team, both on and off court, and I am we prepare to observe Vietnam Human Rights proud to serve them in Congress. Day, it is clear that the struggle is far from f f over. Human rights violations in Vietnam have CONGRESSIONAL TRIBUTE HON- 85TH JUBILEE OF THE AZER- only gotten worse since Vietnam was granted ORING THE SAN ANTONIO FIRE BAIJANI PRESIDENT HEYDAR Permanent Normal Trade Relations (PNTR) DEPARTMENT ALIYEV status, removed from the State Department’s list of Countries of Particular Concern, added HON. CHARLES A. GONZALEZ HON. VIRGINIA FOXX to the World Trade Organization (WTO) and OF TEXAS OF NORTH CAROLINA allowed to be a non-permanent member of the IN THE HOUSE OF REPRESENTATIVES IN THE HOUSE OF REPRESENTATIVES United Nations Security Council. In my eyes, these policies, endorsed by the Thursday, May 8, 2008 Thursday, May 8, 2008 Bush Administration, have been rewards for a Mr. GONZALEZ. Madam Speaker, I rise Ms. FOXX. Madam Speaker, on May 10, we government that has made no real effort to im- today to commend Fire Chief Charles N. Hood commemorate the 85th Jubilee of the late Az- prove its human rights record. and the brave men and women of the San An- erbaijani President Heydar Aliyev. Heydar The Government of Vietnam claimed that it tonio Fire Department. On Tuesday, May 7th, Aliyev was a strong leader at a critical time. had improved its human rights record, and a four-alarm fire swept through the historic When political strife and economic uncertainty that it would continue to make progress on the Main Building at Our Lady of the Lake Univer- engulfed the region, he emerged in 1993 as issue of human rights. However, their record sity in San Antonio, Texas. President of the Republic of Azerbaijan. speaks for itself. Our Lady of the Lake University was found- He steered his country through regional The Government of Vietnam has harassed, ed in 1895 and was the first San Antonio insti- power struggles and global changes. He nego- arrested and sentenced democracy advocates tution of higher education to receive regional tiated a cease-fire in the war with Armenia. He many of whom were not afforded a trial. That accreditation. A beacon of hope and oppor- deepened Azerbaijan’s relationship with the list includes: Father Nguyen Van Ly, Nguyen tunity, Our Lady of the Lake has provided United States, Turkey, Israel, as well as coun- Phong, Nguyen Binh Thanh, Nguyen Bac countless minority and underprivileged stu- tries in Western Europe. He also cultivated the Truyen, and Nguyen Van Dai, lawyer—just to dents the means to a higher education. nation’s relations with multilateral organiza- name a few. But the list doesn’t stop there. In their valiant efforts to fight this destructive tions such as the United Nations, NATO, the Since 2006 the Government of Vietnam has fire, San Antonio Fire Department firefighters Council of Europe, and the OSCE. He detained six American citizens—all falsely ac- went from room to room in the 100 year-old oversaw economic reforms that opened the cused and harassed. One of those cases in- main building, ensuring that students, faculty door for foreign investment. cludes Dr. Nguyen Quoc Quan who has been and staff were safely evacuated. Because of In September 1994, the ‘‘Contract of the incarcerated in Vietnam since November for their courageous efforts, not one life was lost Century’’ was signed between American and promoting peace and non-violence. and amazingly there were no serious injuries Western companies and Azerbaijan. The Con- Since his detainment in Vietnam, I have reported. While the fire was ripping through tract was designed to allow Azerbaijan to de- called for his immediate release and authored the third and fourth floors, firefighters worked velop its energy resources in order to diversify letters to both Secretary Rice and Vietnamese quickly to save the University’s mainframe Western energy supplies. The two early oil Prime Minister Nguyen Tan Dung urging his computer and important records so that these pipelines were from Azerbaijan through Russia safe return to the United States. I have met items were not damaged by the thousands of to the port of Novorossiysk on the Black Sea with his wife Mai Huong and have seen the gallons of water being used to fight the fire. and from Azerbaijan through Georgia to anguish this injustice has caused their fam- More than 100 firefighters fought late into Supsa. But his real dream was the Baku- ily—a family that has not been able to commu- the night and were on hand to make sure that Tbilisi-Ceyhan pipeline, which, despite strong nicate with their loved one since last year. the Our Lady of the Lake University commu- opposition, was supported by both the Clinton Dr. Nguyen Quan now awaits a trial sched- nity was safe. I ask my colleagues to join me and Bush Administrations, and is now pump- uled for May 13 along with fellow democracy in commending the efforts of the San Antonio ing one million barrels of oil a day. activists: Mr. Nguyen The Vu and Mr. Somsak Fire Department and offering support for the President Heydar Aliyev always valued his Khunmi. I call on the Government of Vietnam entire Our Lady of the Lake University com- country’s relations with the United States. The to afford Dr. Quan and the other democracy munity as they recover from this devastating United States was one of the first countries to advocates a fair and just trial. It is my greatest fire. recognize Azerbaijan’s independence. His goal

VerDate Mar 15 2010 07:34 Nov 09, 2010 Jkt 069102 PO 00000 Frm 00014 Fmt 0689 Sfmt 9920 E:\BR08\E08MY8.000 E08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD 8382 EXTENSIONS OF REMARKS, Vol. 154, Pt. 6 May 8, 2008 was to elevate relations to a strategic level, hikers safely. Their health was immediately PERSONAL EXPLANATION and we can say that he has been successful. checked and they were found to be in good After we experienced the worst terrorist at- condition despite being dehydrated and cold. If HON. WALTER B. JONES tack on United States soil on September 11, it were not for the actions of Lt. Scaggs and OF NORTH CAROLINA President Heydar Aliyev was one of the first in the rest of the rescue team, the two lost IN THE HOUSE OF REPRESENTATIVES the world to offer the unconditional support of teachers would not have likely survived an- Thursday, May 8, 2008 his country in the fight against terrorism. Soon other night in the harsh conditions. Mr. JONES of North Carolina. Madam after, Azerbaijan had troops in Afghanistan Lt. Scaggs and all members of America’s Speaker, I was in my district voting in the and was the first country with a predominantly Armed Forces deserve appreciation and re- North Carolina primary election and I missed Muslim population to send troops to Iraq. spect from those they defend. That’s why I am rollcall votes on May 5th, 6th and 7th. I ask President Aliyev was instrumental in shap- proud to stand before you today to honor Lt. that the RECORD show that had I been ing Azerbaijan’s Western-leaning policies and Evan Scaggs from Sulphur, Oklahoma and present: relationship building practices. Azerbaijan thank him for his bravery and his servIce. joined NATO’s Partnership for Peace Program For rollcall No. 240—To suspend the rules and agree to H. Res. 952—I would have voted in 1994. It is also a 2001 charter member of f the GUAM Organization for Democracy and ‘‘yes’’; For rollcall No. 241—To table the motion to Economic Development which works to pro- TRIBUTE TO TERRY DEVORE mote democratic values, ensure stable devel- reconsider H. Res. 952—I would have voted opment, enhance international and regional ‘‘no’’; security, and step up European integration. HON. MARILYN N. MUSGRAVE For rollcall No. 242—To suspend the rules Azerbaijan has consistently integrated into the and agree to H. Res. 1011, as amended—I Euro-Atlantic security architecture, further OF COLORADO would have voted ‘‘yes’’; For rollcall No. 243—To table the motion to deepening U.S.-Azerbaijani military to military IN THE HOUSE OF REPRESENTATIVES cooperation. reconsider H. Res. 1011—I would have voted Following his passing in 2003, Azerbaijan Thursday, May 8, 2008 ‘‘no’’; For rollcall No. 244—Motion to adjourn—I has continued its course first established by Mrs. MUSGRAVE. Madam Speaker, I rise President Heydar Aliyev toward the greater would have voted ‘‘no’’; today to pay tribute to the heroism and self For rollcall No. 245—Motion to adjourn—I democratic and economic development. Due sacrifice of Olney Springs Fire Chief Terry would have voted ‘‘yes’’; to his efforts and the will and character of the DeVore, 31, who died in the line of duty on For rollcall No. 246—Motion to adjourn—I people of Azerbaijan, there is no doubt about Tuesday, April 15, 2008, while driving to the would have voted ‘‘no’’; the viability of this nation or about its capability scene of a brush fire threatening his commu- For rollcall No. 247—Motion to instruct con- as an effective leader in the region. nity. ferees on H. R. 2419—I would have voted The United States looks forward to fur- When Terry heard the distress call Tuesday ‘‘yes’’; thering its partnership with Azerbaijan in the For rollcall No. 248—To table the motion to region and on global issues of mutual con- afternoon from nearby Ordway, Colorado, he jumped in his fire engine with fellow volunteer reconsider the vote on the motion to instruct cern. conferees on H.R. 2419—I would have voted f fireman John Schwartz to try to help. A mas- sive wild fire was burning across the prairie ‘‘no’’; RECOGNIZING THE ACCOMPLISH- and the smoke was so thick that Terry and For rollcall No. 249—To suspend the rules MENTS OF LT. EVAN SCAGGS John could not see the bridge burned out in and pass H.R. 3658—I would have voted front of them. Terry’s father Bruce, a fire de- ‘‘yes’’; For rollcall No. 250—To table the motion to partment volunteer for 36 years, was right be- HON. TOM COLE reconsider H.R. 3658—I would have voted hind them when he noticed their taillights dis- OF OKLAHOMA ‘‘no’’; appear. Bruce and the other firefighters IN THE HOUSE OF REPRESENTATIVES For rollcall No. 251—To suspend the rules stopped and tried to fight the inferno in front and agree to H. Con. Res. 317, as amend- Thursday, May 8, 2008 of them, but it was a hopeless fight. ed—I would have voted ‘‘yes’’; Mr. COLE of Oklahoma. Madam Speaker, it Terry first started helping his father at the For rollcall No. 252—To table the motion to is my privilege today to rise in recognition of fire department when he was 13. He loved his reconsider H. Con. Res. 317—I would have an outstanding young naval aviator from my town and he loved helping people. Although voted ‘‘no’’; district, Lt. Evan Scaggs of Sulphur, Okla- he grew up in Olney Springs, he left for a time For rollcall No. 253—To suspend the rules homa. As a dedicated member of the U.S. to work at Rocky Mountain Steel Mills in and agree to H. Res. 1109, as amended—I Navy, Lt. Scaggs was an integral part of one Pueblo, Colorado, before returning home to would have voted ‘‘yes’’; of the highest elevation rescue missions ever work for the Crowley Correctional Facility. He For rollcall No. 254—To table the motion to to occur in Iraq. Honored by his hometown then moved to the Arkansas Valley Correc- reconsider H. Res. 1109—I would have voted newspaper, the Sulphur Times-Democrat, I felt tional Facility where he became a sergeant. ‘‘no’’; that his story was so compelling and his com- Terry also volunteered at the Olney Springs For rollcall No. 255—Motion to adjourn—I mitment so sincere, that telling his story before Fire Department that serves the town’s 350 would have voted ‘‘yes’’; you today would be but one small way of hon- residents and served as Fire Chief for the past For rollcall No. 256—To suspend the rules oring such an outstanding young man. year. and pass S. 2929, as amended—I would have Madam Speaker, when a group of American Terry left behind wife Jennifer, four children voted ‘‘yes’’; schoolteachers with Teachers Without Borders For rollcall No. 257—To table the motion to between the ages of 4 and 10, Ryan, Breann, disappeared from a hiking trip, Lt. Scaggs, a reconsider S. 2929—I would have voted ‘‘no’’; Katy, and Jeremiah, and his parents Bruce 64th ERQS pilot, was called in as the flight For rollcall No. 258—Motion to instruct con- and Deborah DeVore. ‘‘He was never afraid of lead for the rescue. He and the rest of the ferees on H.R. 2419—I would have voted anything; there was no sense of fear,’’ his crew prepared themselves in just 2 hours to ‘‘no’’; mother Deborah told a newspaper. ‘‘He loved go in search of the hikers. Traveling to the as- For rollcall No. 259—To table the motion to helping people. He was always making jokes, sumed location of the hikers, approximately reconsider the vote on the motion to instruct pulling pranks on people. He just loved life.’’ 120 miles north of Balad Air Base, the rescue conferees on H.R. 2419—I would have voted crew was able to locate the hikers on the side Madam Speaker, I am honored to represent ‘‘no’’; of a mountain sitting at an 80 degree angle. Terry and other men and women who sacrifice For rollcall No. 260—Motion to adjourn—I The teachers were stranded at an altitude of so much to care for their communities. I urge would have voted ‘‘yes’’; 4,700 feet where they were surrounded by my colleagues to join me in mourning the loss For rollcall No. 261—Motion to adjourn—I treacherous terrain. Using careful maneu- of a great American and in expressing heart- would have voted ‘‘yes’’; vering, the helicopter was able to fly close felt gratitude and sincere appreciation for the For rollcall No. 262—Motion to adjourn—I enough to allow the rescuers to retrieve the service of Terry DeVore. would have voted ‘‘yes’’;

VerDate Mar 15 2010 07:34 Nov 09, 2010 Jkt 069102 PO 00000 Frm 00015 Fmt 0689 Sfmt 9920 E:\BR08\E08MY8.000 E08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD May 8, 2008 EXTENSIONS OF REMARKS, Vol. 154, Pt. 6 8383 For rollcall No. 263—To suspend the rules Angeles. Assemblywoman Bass’s leadership named the National Tropical Botanical Garden and agree to H. Res. 1168—I would have skills were recognized early on, as she was in 1988 through an Act of Congress. The pur- voted ‘‘yes’’; selected in her first term to the influential posi- poses of the garden as set forth in the 1964 For rollcall No. 264—To table the motion to tion of Assembly Majority Whip. In her second charter was to: establish, develop, operate reconsider H. Res. 1168—I would have voted term, Assemblywoman Bass was elevated to and maintain an education and scientific cen- ‘‘no’’; the powerful post of Assembly Majority Lead- ter with libraries, herbaria, laboratories and For rollcall No. 265—To suspend the rules er. During her first two terms in the State As- museums appropriate and necessary for en- and agree to H. Res. 1155—I would have sembly, Speaker-elect Bass had 17 of her bills couraging and conducting research in basic voted ‘‘yes’’; signed into law by Governor Schwarzenegger and applied tropical botany; foster and encour- For rollcall No. 266—To table the motion to on issues ranging from foster care reform to age fundamental research with respect to trop- reconsider H. Res. 1155—I would have voted children’s health insurance. ical plant life and to encourage research and ‘‘no’’; Before entering elected office, Speaker-elect study of the uses of tropical flora in agri- For rollcall No. 267—Motion to adjourn—I Bass founded and ran the Community Coali- culture, forestry, horticulture, medicine and would have voted ‘‘yes’’; tion, a community based nonprofit organization other sciences; disseminate through publica- For rollcall No. 268—To approve the jour- in South Los Angeles. As Executive Director, tions and other media the knowledge acquired nal—I would have voted ‘‘no.’’ she built the Community Coalition into an im- at the gardens relative to basic and applied f portant social justice organization that empow- tropical botany; collect and cultivate tropical ered residents and helped clean up neighbor- flora of every nature and origin and to pre- ON THE BIRTH OF COOPER hoods ravaged by the crack cocaine epidemic. serve for the people of the United States spe- ADDISON TAYLOR Today, the organization is considered a model cies of tropical plant life threatened with ex- of community engagement throughout the tinction; and provide a beneficial facility that HON. JOE WILSON country. will contribute to the education, instruction, OF SOUTH CAROLINA Speaker-elect Bass grew up in the Venice/ and recreation of the people of the United IN THE HOUSE OF REPRESENTATIVES Fairfax area of Los Angeles, California. She is States. the daughter of DeWitt and Wilhelmina Bass. Thursday, May 8, 2008 Although its charter does not include author- Her father worked as a mail carrier and her ization of appropriations, the National Tropical Mr. WILSON of South Carolina. Madam mother was a full-time stay-at-home mom who Botanical Garden has endeavored, with nota- Speaker, I am happy to congratulate my long- raised four children. Speaker-elect Bass is a ble success, to live up to the goals set forth time friend and former law partner Heath Pres- graduate of Hamilton High School, received in its charter. Its work has been almost exclu- ton Taylor and his wife Julie Hartley Taylor of her Bachelor of Arts degree in Health sively supported by private donations from in- Sandy Run, South Carolina, on the birth of Sciences from Cal State Dominguez Hills and dividuals and foundations. Operating support their new baby boy. Cooper Addison Taylor has a Physician Assistant Certificate from the of nearly $100 million has been provided was born on April 17, 2008, weighing 6 University of Southern California School of through donations in the 43 years of the Gar- pounds and 5 ounces. Addison is an old fam- Medicine. den’s existence; assets valued at $50 million, ily name. Cooper joins an older brother, An- Within a matter of a few short years, Speak- including endowments, trusts, land, buildings, drew Preston Taylor. He has been born into a er-elect Bass went from being a community and rare books are owned by the Garden. loving home where he will be raised by par- organizer to an elected official, and beginning During its 43 years, the Garden has received ents who are devoted to his well-being and next week, will be one of the most influential less than $5 million in federal grants and con- bright future. legislative leaders in the largest State in the tracts. The National Tropical Botanical Garden I am so excited for this new addition to the country. Her rapid ascension is a testament to files an audit report with the Senate each year Taylor family. I want to congratulate Cooper’s not only her leadership skills, but also to her by an independent auditing firm in accordance grandparents George Preston Taylor and Judy dedication to the people that she serves. with the terms of its Congressional Charter. Wilkes Taylor of Sandy Run, South Carolina, On behalf of all 34 members of the Cali- The National Tropical Botanical Garden and Forrest Andrew Hartley, III, and Barbara fornia Democratic Congressional Delegation, I manages five tropical botanical gardens and Bickford Hartley of Atlanta, Georgia. Great congratulate Speaker-elect Bass on her his- three preserves, which comprise 1,800 acres. grandmother is Gladys Taylor of Sandy Run, toric election and look forward to working with Four of the gardens and the three preserves South Carolina. Among the happy aunts and the new Assembly Speaker as we move for- are in Hawaii’s second Congressional District, uncles are my former law partner Henry H. ward together to address the issues facing the which I represent. One of the gardens is lo- Taylor and his wife Molly D. Taylor of West State of California. Columbia, South Carolina. cated in Congresswoman ROS-LEHTINEN’s dis- f trict in Florida. More than a collection of beau- f INTRODUCTING A BILL TO AU- tiful and rare plants, the National Tropical Bo- RECOGNIZING CALIFORNIA ASSEM- THORIZE APPROPRIATIONS FOR tanical Garden also has important research BLY SPEAKER-ELECT KAREN THE NATIONAL TROPICAL BO- and educational facilities. These include the BASS TANICAL GARDEN Loy McCandless Marks Botanical Library, the largest and most important botanical/horti- HON. ZOE LOFGREN HON. MAZIE K. HIRONO cultural library collection in Hawaii, and a major regional herbarium used by scientists OF CALIFORNIA OF HAWAII throughout the world. IN THE HOUSE OF REPRESENTATIVES IN THE HOUSE OF REPRESENTATIVES The Garden conducts world-class, state-of- Thursday, May 8, 2008 Thursday, May 8, 2008 the-art tropical biodiversity research and con- Ms. ZOE LOFGREN of California. Madam Ms. HIRONO. Madam Speaker, I rise today servation, which distinguishes it from display- Speaker, as chair of the California Democratic to introduce a bill authorizing appropriations oriented gardens and parks in the United Congressional Delegation, I rise today to rec- for the National Tropical Botanical Garden. States and abroad. The Garden has extensive ognize a historic milestone in California his- This is a companion to S. 2220, which was in- national and international alliances with botan- tory. Next week, on Tuesday, May 13, 2008, troduced by Senator DANIEL K. AKAKA and co- ical gardens, universities, and research cen- the Honorable Karen Bass will be seated as sponsored by Senators DANIEL K. INOUYE, BILL ters. It has a visiting scientist program and the California’s first African American woman NELSON, and MEL MARTINEZ. S. 2220 was ap- library is used by a wide array of scientists, in- Speaker of the State Assembly. I would also proved by the Senate Energy and Natural Re- cluding federal researchers. However, these point out, Madam Speaker, that this is the first sources Committee on April 10, 2008. I am facilities badly need to be updated. The Gar- time that an African American woman has joined in introducing this bill by Congressman den has a plan to construct a new Botanical held this post in any State. NEIL ABERCROMBIE of Hawaii and Congress- Research Center. Such a Center would bring Speaker-elect Bass was first elected to the woman ILEANA ROS-LEHTINEN of Florida. the Garden’s significant botanical, research, State Assembly in 2004 to represent the 47th The Pacific Tropical Botanical Garden was and rare book libraries and its unique and im- Assembly District which covers parts of Los chartered by Congress in 1964; it was re- portant herbarium collections together under

VerDate Mar 15 2010 07:34 Nov 09, 2010 Jkt 069102 PO 00000 Frm 00016 Fmt 0689 Sfmt 9920 E:\BR08\E08MY8.000 E08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD 8384 EXTENSIONS OF REMARKS, Vol. 154, Pt. 6 May 8, 2008 one roof, along with research laboratories, of- parents, John Archie and Louise Graham, in ington, DC, and Philmore was awarded one of fices, and dedicated space for students and Laurinburg, North Carolina. He attended the highest monetary awards in the history of visiting researchers. Laurinburg and Lincoln Heights High Schools the Nuclear Engineering Department’s incen- The Garden’s research focuses on field re- and was a well-rounded student with a 3.9 tive awards program for outstanding perform- search, including discovering new species; grade point average. He was president of his ance in upgrading the training program. documenting and conserving ecosystems, en- class from eighth grade through the comple- Philmore continued his work in the commu- dangered species, and cultural knowledge; tion of high school, was captain of the football nity by establishing a new chapter of the and addressing invasive species and restora- team, played basketball and was principal for Omega Psi Phi Fraternity in Vallejo. In 1966, tion ecology issues. Its scientists are involved a day. he started the Continentals of Omega Boys in a number of international science programs Philmore’s father died when he was age 4 Club with six boys; it has grown to more than focused primarily on the Pacific Islands. and his siblings and he missed the first 6 500 members and is now called the Continen- Some 90 percent of all biodiversity exists in weeks of school to pick cotton and help their tals of Omega Boys & Girls Club, Inc. The or- the tropics. Hawaii, the only U.S. State in the mother buy food and clothing for school. His ganization is considered one of the top boys tropics, is home to more endangered plants hatred of picking cotton inspired him to do well and girls clubs in the country. The club has and animals than any other State. This is due in school because their mother would remind produced a number of doctors, lawyers, busi- to the high percentage of unique, endemic them that their choice was either go to school nessmen, educators, engineers, skilled work- species that evolved because of Hawaii’s geo- or continue to pick cotton. ers, and many other outstanding citizens. Aca- graphic isolation and their susceptibility to the Philmore graduated from Tennessee State demics is the major focus of the club and impacts of aggressive nonnative species and University with bachelor of science degrees in more than 70 percent of the membership diseases. However, over the past 30 years, mechanical and metallurgical engineering in achieve school honor rolls each year. More the National Tropical Botanical Garden has re- May of 1962. He has done graduate studies in than 200 members have attended colleges discovered some two dozen species that were material science at UCLA and UC Berkeley. and trade schools across the country and thought to be extinct and discovered 30 new He was commissioned as an officer in the Philmore and members have received more species previously unknown to science. Many United States Air Force through the Univer- than 63 awards for outstanding community of the species that the Garden is working to sity’s ROTC program. While in the Air Force, contributions during the club’s existence. preserve and protect hold promise for the fu- he served as a project engineer for the Titan When he retired from Mare Island Naval Ship- ture development of drugs to cure diseases. Intercontinental Ballistic Missile Program at yard, Philmore devoted himself completely to The Garden’s research teams conduct Norton Air Force Base, San Bernardino, Cali- the club, growing it into the valuable asset it ethnobotanical research to study and docu- fornia, from 1962–1965. During his tour of is today. ment how indigenous people used plants. duty here, he worked in the Materials Engi- Through the years Philmore was nominated Ethnobotanical fieldwork is augmented by lab- neering Department and developed a number for a multitude of awards and is the proud re- oratory studies using state-of-the-art tech- of material specifications for missile compo- cipient of the NAACP Outstanding Citizen of nology to determine a plant’s molecular com- nents. He received a Superior Accomplish- the Year, Good Neighbor Award, Salute to position and medicinal properties. This re- ment Award for completing a record number of America Lifetime Merit Award, Profile of Excel- search has yielded potential new anti-HIV projects updating the Titan and Atlas Missile lence Award, Martin Luther King, Jr., Humani- medication and provided clues to the genesis programs. tarian Award, ‘‘Who’s Who’’ among Black of ALS and Parkinson’s disease. Philmore also worked in the community Americans, Outstanding Young Men of Amer- While the National Tropical Botanical Gar- while at Norton Air Force Base. In 1964, he ica and several selections as Omega Man of den has achieved much over the past four spearheaded the project to establish a new the year and Citizen of the Year for the decades, there is so much work that is need- chapter of the Omega Psi Phi Fraternity, Inc., Omega Psi Phi Fraternity, Inc. ed. Although the primary support for the Gar- Pi Rho Chapter, in San Bernardino, California. Philmore has always been active with den will always be private funding, it is fitting The chapter offered scholarships and social- Friendship Baptist Church in Vallejo, where he that we have an opportunity to appropriate economic programs to the community under served 10 years as superintendent of Sunday funds to support this institution in achieving its his leadership. He was selected as ‘‘Chapter Church School and has taught Sunday School Congressional Charter. Our bill authorizes an- and District Omega man of the Year.’’ for 37 years, including his years in high nual appropriations up to $500,000 for oper- Philmore received an honorable discharge school. ation and maintenance expenses. The 2008 from the U.S. Air Force in August 1965 and He was married to the late Jamella Nelson budget for the Garden is $9 million, 95 percent accepted a position with Mare Island Naval Graham and they have two children, daughter, of which will be provided from private sources. Shipyard in Vallejo, California, in October Deidre LeNore Graham and son, Montoya I invite all of my colleagues to come to Ha- 1965, where he directed the Foam Salvage Reed, both graduates of Tennessee State Uni- waii or Florida to visit the National Tropical Vessels Research and Development Program. versity. Deidre obtained degrees in English Botanical Garden and to observe firsthand the He received a Superior Accomplishment and criminal justice and Montoya’ earned a BS important conservation and research activities Award for developing an economical method degree in biology and has done graduate taking place. I urge my colleagues to join me of testing the flotation material in the labora- study at TSU in animal science. in supporting this bill. tory rather than the costly ocean testing. Madam Speaker, because of Mr. Graham’s f In 1972, Philmore was promoted to tech- devotion to his family, his community, and his A TRIBUTE TO PHILMORE nical support branch head of the Nuclear In- country, I am delighted to have this oppor- GRAHAM spection Division of Mare Island Nuclear Sub- tunity to recognize his tireless efforts and ask marine Overhaul Program. He received a third all Members of the House to join me in wish- HON. GEORGE MILLER Superior Accomplishment Award for Out- ing him well. standing Supervision of Training, Technical f OF CALIFORNIA Support and Records of Naval Nuclear Work. IN THE HOUSE OF REPRESENTATIVES From 1979 to 1983, Graham worked as an in- RECOGNIZING GERRY CUSHMAN Thursday, May 8, 2008 ternal auditor for the Nuclear Reactor Division Mr. GEORGE MILLER of California. Madam of the Nuclear Engineering Department and HON. THOMAS H. ALLEN Speaker, I rise today and invite my colleagues was assigned as the Director of Training for OF MAINE to join me in honoring Philmore Graham, of the department and supervised the training of IN THE HOUSE OF REPRESENTATIVES Vallejo, California, for his many years of serv- some 250 engineers and technicians. In 1986, Thursday, May 8, 2008 ice to our Nation and our community. Mr. he was promoted to Supervisor, Nuclear Engi- Graham has provided remarkable leadership neer and became the first and only African Mr. ALLEN. Madam Speaker, it is my dis- to our young people during his lifetime, espe- American supervisor in the Nuclear Engineer- tinct pleasure to recognize the hard work and cially by founding and then expanding the ing Department’s history of Mare Island Naval achievements of Gerry Cushman, a fisherman Continentals of Omega Boys and Girls Club. Shipyard. During his administration, the De- from Maine who recently won the prestigious Philmore Graham, the ninth of ten siblings, partment received the highest grades to date Golden V—Notch award from the Maine was born August 29, 1938, to now deceased on written exams during an audit from Wash- Lobstermen’s Association, an association of

VerDate Mar 15 2010 07:34 Nov 09, 2010 Jkt 069102 PO 00000 Frm 00017 Fmt 0689 Sfmt 9920 E:\BR08\E08MY8.000 E08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD May 8, 2008 EXTENSIONS OF REMARKS, Vol. 154, Pt. 6 8385 more than 1,200 lobstermen from Eastport to Norconian Resort Supreme—a 700-acre mas- Over the weekend of May 9, 10, and 11, Kittery. This award recognizes a fisherman terpiece that opened to worldwide acclaim on 2008, Norconians will remember their past and who has gone above and beyond the call of February 2, 1929, complete with 60-acre man- celebrate a truly unique Southern California duty to help preserve the lobster industry. made lake, magnificent golf course, Lake Ca- Equestrian lifestyle. It is an honor to represent Gerry won this award not just for his effort to sino, hotel, spa, separate chauffeurs’ quarters the town of Norco in Congress and I congratu- protect and preserve the lobster industry but and the only Southern California AAU Quali- late the town and residents on 85 years of for his steadfast dedication to the entire Maine fying outdoor pool until the 1932 Olympic service to their country and community. commercial fishing industry. games. Hollywood flocked to the resort and f Gerry Cushman serves on the Board of Di- stars such as Clark Gable, Norma Shearer, rectors of the Maine Lobstermen’s Associa- Buster Keaton and Joan Crawford were reg- LTG MICHAEL HAMEL: HONORING tion, is a member of the Zone D Lobster ular visitors at what may well have been the A LIFETIME OF SERVICE Council, and sits on the State’s Lobster Advi- finest resort of its kind on the west coast. sory Council. He also works with the Port MGM and Fox Studios held company picnics HON. JANE HARMAN Clyde Fishermen’s Co-op and the Port Clyde on the site as did Disney Studios who held a OF CALIFORNIA Draggermen’s Co-op: a joint working group to famous party in 1938 to commemorate the IN THE HOUSE OF REPRESENTATIVES preserve the fishing community of Port Clyde. success of ‘‘Snow White and the Seven Thursday, May 8, 2008 Gerry has championed the lobster industry Dwarfs’’. Ms. HARMAN. Madam Speaker, the Space both on the water and on the dock. He helped On May 20, 1928, the lavish swimming and and Missile System Center, SMC, at L.A. Air to secure a $340,000 grant from the Land for diving pools opened to greet the 1928 USA Force Base plays the critical role in the de- Maine’s Future Fund to facilitate building and Men and Women’s Olympic Swimming and sign, production, and launch of our country’s expanding a fishing pier in Port Clyde for Diving Team. Swimmer Cecily Cuhna high- most sophisticated military satellites. Located lobstermen and groundfishermen as well as lighted the day with setting a world record. If in El Segundo, CA, in the center of my con- two bait companies. The grant is part of a a swimmer or diver participated in the 1928, gressional district, SMC has enjoyed 58 con- larger initiative to protect working waterfront 1932 or 1936 Olympics those athletes com- secutive successful launches. Employing spaces along Maine’s coast. Working water- peted, trained or exhibited at the Norconian 6,500 military and civilian personnel nationally, fronts are rapidly disappearing in the State of Resort. with a whopping $10 billion annual budget— Maine and these resources are crucial to pre- Many more memorable events and activities SMC is a major economic driver in southern serve both fisheries and communities. occurred in the coming years and in the most California. I have had the privilege of meeting Gerry unlikely of places: the poultry town of Norco. The importance of SMC to our national se- and seeing first hand his dedication to ensur- On December 8, 1941, the depression-weary curity cannot be overstated either. In my many ing that future generations of Maine fishermen resort became one of the preeminent naval terms in Congress, I’ve always worked closely will have both lobsters to harvest, and a place hospitals in the Nation and at its peak in 1945 with the SMC commander, who is much more to land their catch. I admire Gerry and the serviced 5,000 wounded, sick and battle- than a mission manager. LTG Mike Hamel, men and women who work tirelessly to make weary sailors and marines. The first patients the present commander, retires in July, and I certain that the fishing industry and the com- were casualties of the infamous Pearl Harbor attack and recuperated in the exquisite hotel rise to honor his extraordinary service. munities they support are preserved for future Mike and I have often talked about Amer- rooms. The Naval Hospital quickly set the generations. I echo Gerry’s words that ‘‘what ica’s strategy for space. Framing a new, na- standard in a number of areas which included we leave for the next generation is important.’’ tionally integrated space policy—one bringing the treatment of polio, use of penicillin to con- Small fishing communities across the country together the civil, military, and commercial quer malaria and tuberculosis, and the devel- are beginning to take a leading role in the sectors—is a common goal of ours. I applaud opment of prosthetics and occupational ther- management of the fishery resources on him for his visionary leadership on this issue— which they all depend, and Gerry Cushman is apy. Norco was also the birthplace of wheelchair and look forward to more conversations about one of the leaders in this effort. I would like to getting it right. once again thank Gerry for his hard work and basketball on the wheels of the fabulous ‘‘Roll- ing Devils.’’ The stars, who once were guests Mike Hamel has served his country with dis- I wish him the best in all his future endeavors. tinction for 36 years, since receiving his com- f of the former Norconian Resort, turned out ‘‘for the boys’’; Gary Cooper, Abbott and mission as second lieutenant from the U.S. Air TRIBUTE TO THE CITY OF Costello, The Three Stooges, Marlene Force Academy in 1972. In the course of 16 NORCO’S 85TH BIRTHDAY Dietrich, Jack Benny, Bob Hope and dozens assignments, he rose to the rank of lieutenant of other stars entertained wounded heroes general, which he attained on June 1, 2005. The change of command ceremony occurs from battles in the Pacific. Eleanor Roosevelt HON. KEN CALVERT May 15, a date Congress is in session. was also a visitor, as was Helen Keller, and OF CALIFORNIA Though I will miss the transfer of command to ball club owner Bill Veeck, a wounded marine, IN THE HOUSE OF REPRESENTATIVES the very able GEN John Sheridan, I look for- guided his Cleveland Indians to a World Se- ward to partnering with him and to welcoming Thursday, May 8, 2008 ries Championship from a hospital bed in a tanned and relaxed Mike Hamel to Wash- Mr. CALVERT. Madam Speaker, I rise today Norco. to honor and pay tribute to an exceptional Norco citizens rallied behind the war effort ington after he and his wife, Linda, complete town in my congressional district. The town of with record bond sales and patriotism on their drive across the country. Thanks, Mike, on behalf of a grateful Nation. Norco, California, was dedicated on May 13, many occasions raising thousands of dollars 1923. Founded by a dynamic entrepreneur, more than cities ten times larger in size and f Rex B. Clark, and funded by his wife Grace population. After World War II and Korea, TRIBUTE TO WAVERLY-SHELL Scripps Clark, daughter of powerful news- Norco once again became an agricultural pow- ROCK WRESTLING TEAM paper mogul James Scripps. This 15-square- erhouse, but, with the closing of the Naval mile community of Norco began as a Cali- Hospital in 1957, the entire area went into an HON. BRUCE L. BRALEY economic tailspin. However, in 1963 a long fornia agricultural powerhouse and today is OF IOWA known as ‘‘Horse Town U.S.A.’’ Clark’s origi- forgotten real estate agent scrawled the words IN THE HOUSE OF REPRESENTATIVES nal concept was to develop a community of ‘‘Horse Property for Sale’’ on a piece of white ‘‘go-getters’’ whereby a man could live and butcher paper and very quickly Norco became Thursday, May 8, 2008 feed his family off the land. With a town motto the home to horse lovers. Incorporated in De- Mr. BRALEY of Iowa. Madam Speaker, I of ‘‘Acres of Neighbors,’’ the dream was wildly cember of 1964 to protect its ‘‘rural lifestyle,’’ rise today to recognize the outstanding results successful as Norco brand tomatoes, grapes, Norco is home to a community fiercely de- achieved by the Waverly-Shell Rock wrestling berries, lettuce, chickens, and other produce voted to the equestrian lifestyle with large team at the Iowa State Wrestling Tournament were sent all over the United States. properties, extensive open space and a horse in Des Moines this past winter. A chance discovery of hot mineral water in trail on every street—120 miles of horse trails Waverly-Shell Rock took all the drama out 1926 led Rex Clark to yet another dream: The to be exact. of the Class 3A team finals by winning the

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Madam Speaker, I rise today today to honor Mary Alice Williams, of North 200-point mark in a State meet. to acknowledge the 90th birthday of Helen G. Richland Hills, Texas. The Texas Nurses As- I congratulate Waverly-Shell Rock for win- Jacob, an inspirational woman who fought for sociation, Districts Three and Four, and the ning the Iowa Class 3A State championship. our country in WW II and who continues to Dallas-Fort Worth Nurse Executives have rec- Waverly-Shell Rock’s last title came in 2005. fight on behalf of her fellow veterans every ognized Ms. Williams as one of the Great 100 Nurses of 2008. Ms. Williams works as a Madam Speaker, I am extremely proud of day. Helen is a brilliant example of commit- ment and devotion to one’s community and nurse at the North Hills Hospital. the accomplishments of the Waverly-Shell fellow man. Nurses are often the initial and most fre- Rock wrestling team, both on and off the mat, The daughter of Frank and Ellen Cooley, quent individuals who come in contact with pa- and I am proud to serve them in Congress. Helen was born on May 16, 1918 in Buffalo, tients. They serve as greeters, encyclopedias New York where she and her siblings resided of patient histories, comforters, and above all f on Crescent Avenue. Helen attended St. healers. Mary Alice exhibits all these excellent qualities on a daily basis. CONGRATULATING MEDGAR Mark’s School and Mount St. Joseph’s High School. Each year this recognition is bestowed on EVERS COLLEGE, CUNY nurses who embody excellence in the science Helen, against her mother’s wishes, joined and art of nursing. The chosen honorees be- the army in 1942 and was assigned to the long to an array of professional organizations HON. CHARLES B. RANGEL 29th Traffic Regiment Division. Landing in and work in a wide variety of clinical special- Paris six days after the liberation, Helen per- OF NEW YORK ties. This is the 18th consecutive year that the formed tasks critical to moving troops through- Texas Nurses Association, Districts Three and IN THE HOUSE OF REPRESENTATIVES out Europe. Four, and the Dallas-Fort Worth Nurse Execu- Upon her return to Buffalo, Helen was de- Thursday, May 8, 2008 tives have recognized area nurses for their nied membership in both the Veterans of For- compassion and dedication. The recipients will Mr. RANGEL. Madam Speaker, I rise today eign Wars and the American Legion. In what be honored at a gala event on Monday, May has become her trademark, Helen pioneered to congratulate Medgar Evers College of the 12, 2008. and founded the Ereico Women’s Post #1586. City University of New York on its newly an- Madam Speaker, it is a privilege to stand nounced initiative to implement two new bach- In 1984, Helen began volunteering as the today and congratulate Mary Alice Williams. Women’s Veteran Coordinator, amassing She is a fine representative of the North elor degree programs. more than 12,000 hours of dedicated service. Texas nursing community. Her work is an ex- Medgar Evers College has long possessed In 1996, the Helen G. Jacob Wellness Clinic cellent contribution to the patients of North an unparalleled reputation in the field of adult opened in the VA Medical Center in Buffalo, Hills Hospital and I am proud to serve her in education. The college provides its students New York in recognition of her tireless advo- the 26th District of Texas. Ms. Williams has with a unique experience, which combines cacy for quality services within the VA West- exhibited great skill in the field of nursing, and academic excellence in nearly 100 areas of ern NY Healthcare System. By Helen’s exam- truly deserves this great honor. I join the entire study with real-world experience. This unique ple and lifelong work, we are also reminded of North Texas community in thanking her for the combination has lead to the continued suc- the obligation to keep the promises made by apparent commitment to her fellow citizens. cess of its students. As a result, the State our government to our veterans. f Justifiably and deservedly, Helen has been Board of Regents and the City University of PAYING TRIBUTE TO CAROLYN honored over the years. These awards include New York accreditation committee approved STEPHENS American Legion’s Legionnaire of the Year; the allocation of money to fund two new bach- The Found Women Award from Women Focus elor degree programs: the Bachelor of Arts in of Western New York; Buffalo Ambassador HON. JON C. PORTER– Religion Studies and the Bachelor of Science from the Greater Buffalo Convention and Visi- OF NEVADA in Social Work. The new programs are ex- tors Bureau; Award of Excellence from Every IN THE HOUSE OF REPRESENTATIVES pected to attract a record number of new stu- Women’s Opportunity Center; the United Way Thursday, May 8, 2008 dents to the college for the next academic and J.C. Penny’s Golden Rule Award; and the Mr. PORTER. Madam Speaker, it is my dis- year and ensure a steady stream of students Susan B. Anthony Award. tinct pleasure to rise today to honor Carolyn for the foreseeable future. Medgar Evans Col- Helen continues to respond to calls for serv- Stephens by entering her name in the CON- lege provides students with the flexibility to se- ice including my request that she serve on the GRESSIONAL RECORD, the official record of the lect their course of study and schedule their military academy review panel for the appli- proceedings and debates of the United States classes around commitments such as a job, cants in the 27th District. She remains an ac- Congress since 1873. Today I pay tribute to thereby providing those adults who might not tive member of over 20 different organizations. Carolyn Stephens, Managing Partner for otherwise have the opportunity with the Helen is also a Eucharistic Minister at St. Jerolyn Enterprises, for her achievements in chance to return to school. Education is the Mark’s Church. small business throughout the Las Vegas key to escaping the grasp of poverty that Her two children, Patricia and Bill, and community. plagues so many Americans. Medgar Evers grandchildren, Tom, Michelle, Christine, Eric, Carolyn Stephens moved to Las Vegas after College is taking profound steps to ensure that Adam, and Kevin, will join with the family of receiving her Bachelor’s Degree from the Uni- those in need have access to higher edu- veterans and friends on May 9th at the Troop versity of Georgia. She used her experience to I Hamlin House to celebrate Helen’s 90 years cation. acquire a job as Director for the Health Care of life, love, and laughter. Division of Manpower Temporary Services. It is my sincere hope that other Colleges Helen is a friend to all and a fighter for vet- After this, Carolyn established a business of and Universities across the nation will join erans. Madam Speaker, I rise to congratulate her own called Information Products, Inc., Medgar Evers College in providing opportunity Helen G. Jacob on the occasion of her 90th which supplied computer and copy paper to for the working poor to enhance their edu- birthday and to thank her for her service and local businesses. Gerald (Jerry), Carolyn’s cation and qualify for better paid employment. continuing commitment to our country. husband and business partner, has supported

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Madam Speaker, I rise today delegate to the 1995 White House Conference IN THE HOUSE OF REPRESENTATIVES to honor Mr. Horace Fincher, the mayor of the on Small Business. city of Lytle, in recognition of his exemplary Discovering the need to connect other local Thursday, May 8, 2008 leadership in the growth of the city during his tenure, which ends on May 12, 2008. woman business owners, Carolyn published Mr. YOUNG of Florida. Madam Speaker, Horace Fincher served as Mayor of the City the Women’s Yellow Pages of Southern Ne- with their voices of angels, the Little Home- of Lytle for 14 years after having served on vada from 1993 to 1995. Carolyn has worked town Soldiers of St. Petersburg, Florida bring the Lytle City Council for 6 years. During his tirelessly to champion the advancement of the greatest of comfort and joy to the families tenure, Mayor Fincher worked to increase the women in business. For her work and dedica- of our men and women in uniform who have tax base for taxpayers in Lytle by bringing in tion, she has received numerous awards and deployed around the world to protect our free- businesses such as H–E–B, Sonic Drive-In, achievements including being the first recipient dom. of the Las Vegas Chamber of Commerce Cir- McDonald’s, Bill Miller Bar-B-Q, Camino Real This unique group of children ranging in age Mental Health & Mental Retardation (MHMR) cle of Excellence Award. She was also hon- from 3 to 16, was founded in 2003 by Elaine ored with the American Red Cross Clara Bar- Center, Hurley Funeral Home, and Tri-County Hopkins to speak in a special way to the Dialysis Center. He also has endeavored in ton Medal of Excellence, the American Heart youngest family members of our deployed Association Heart of Gold, and the Soroptimist bringing consecutive grant proposals to the servicemembers. Through patriotic songs, dra- Alamo Area Council of Governments International Women Helping Women Award. matic plays, cards and letters, and personal Moreover, the Small Business Administration (AACOG), which is a voluntary association of appearances locally and nationally they pro- local governments and organizations in twelve has recognized her with the SBA’s Women vide immeasurable support to children and Business Advocate Award. counties that serves its members through adults alike. They visit Veterans Hospitals and planning, information, and coordination activi- Madam Speaker, I am proud to honor Caro- Nursing Centers and sing at the funerals of ties. lyn Stephens and would like to recognize her fallen servicemembers. Having been with them Mayor Fincher truly led by example and it is accomplishments within the Las Vegas com- on a number of these occasions, I can tell you to his credit that the city of Lytle has seen an munity. I would also like to congratulate her on that their words and songs of hope and en- improvement in its business capital, and a re- receiving recognition as the Women in Busi- couragement are most appreciated. newal of infrastructure projects. The city is a ness Champion of the Year for the 2008 Small The Little Hometown Soldiers have per- truly better place because of the dedication Business Awards. formed on national television, they have trav- that Mayor Fincher has shown in his public eled to Washington to perform at the Armed service. f Forces Retirement Home, and they sang for Madam Speaker, I am honored to have this our returning troops as part of Operation time to recognize Mayor Horace Fincher, and TRIBUTE TO JOAN SCHWADE Home Front at MacDill Air Force Base in I thank you for this time. Tampa. f HON. TOM LATHAM Madam Speaker, Elaine Hopkins has done IN RECOGNITION OF SAC- a remarkable job with these children who are RAMENTO’S CHILD SAFETY AD- OF IOWA this generation’s young patriots. Even at their VOCATES IN THE HOUSE OF REPRESENTATIVES early ages, they understand the shared sac- rifice of our troops and their families and they Thursday, May 8, 2008 understand the true cost of freedom having at- HON. DORIS O. MATSUI tended the funerals of many of our heroes. OF CALIFORNIA Mr. LATHAM. Madam Speaker, I rise today IN THE HOUSE OF REPRESENTATIVES On Memorial Day weekend, they will per- to recognize Joan Schwade for reaching a form a special concert entitled ‘‘I Believe I Can Thursday, May 8, 2008 noteworthy milestone of 40 years’ service as a Fly’’ as a tribute to the children and families of meter reader in the community of Protivin, Ms. MATSUI. Madam Speaker, I rise today our fallen servicemembers. The event at 3 pm Iowa. to recognize many of Sacramento’s out- on Sunday, May 25, 2008 at The Paladium standing individuals and businesses as mem- As a meter reader in a small town, Joan Theatre in St. Petersburg, Florida is free and bers of the Sacramento community gather at gets a fascinating perspective of the commu- open to the public. the Child Abuse Prevention Center’s annual nity and has a great opportunity to regularly Madam Speaker, I wish all my colleagues Inspirations luncheon. The men and women meet with townspeople. When she started her could be with me that day to hear the words being honored this afternoon are dedicated to job in 1968, all of the 177 meters in town were of support and encouragement these children the prevention of child abuse and well-being of located on the inside of homes. Times bring to families who have suffered the great- Sacramento’s children and families. I ask all changed and today meters are located outside est of loses. The Little Hometown Soldiers are my colleagues to join me in honoring these the homes, so readers like Joan are able to comprised of Camry Moody, Jermaine Lewis, fine Sacramentans. make it through their routes more efficiently. Sherice Johnson, RoShaun Dudley, RaShard David Ballard and the Children’s Receiving At the age of 76, Joan continues to enjoy the Dudley, Nehemiah Sonnylal, Johnathan Home of Sacramento are receiving the com- exercise and opportunity to talk with local resi- Rosario, Isabelle Rosario, Tamaira Char- munity service provider award. The Children’s dents. It is reported that she could do without lemagne, Griffin Ford, Sajon Ford, Nykko Receiving Home of Sacramento is a shelter the dogs and winter weather, but she plans to Ford, Phoenix Ford, Keanu Ford, Mariangela for abused and neglected children in Sac- continue her work as long as she is able to Vasquez, Jissel Vasquez, Marcos Vasquez, ramento County. The only shelter of its kind, perform it. Amanda Puyot, Darquell Pierre, Andrea the Children’s Receiving Home serves over I know that my colleagues in the United Young, Prentazia Crawford, Shandra Gordon, 1,800 children each year. I would like to com- States Congress join me in commending Joan Erica McCallister, Destine Wilson, Sydney mend them on their ability to help these chil- Schwade for her service and dedication to the Peterman, Iyonna Holloway, Jamesia Hollo- dren in their time of need. David is being hon- Protivin community as a meter reader. I con- way, and Gisselle Zayas. They are one of our ored for his contributions to a variety of cam- sider it an honor to represent her in Congress, area’s and our Nation’s greatest treasures and paigns that have secured funding to help im- and I wish her all the best in her future en- I would ask you to join me in saying thank you prove and expand the facilities and make deavors. to them for sharing their gift of love and music. changes in the care children receive there. In

VerDate Mar 15 2010 07:34 Nov 09, 2010 Jkt 069102 PO 00000 Frm 00020 Fmt 0689 Sfmt 9920 E:\BR08\E08MY8.000 E08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD 8388 EXTENSIONS OF REMARKS, Vol. 154, Pt. 6 May 8, 2008 addition to his dedication to the Children’s Re- Louisiana HonorAir to salute them, the coura- Linda’s respect and admiration for these WWII ceiving Home of Sacramento, Mr. Ballard has geous men and women who stood to protect heroes, and her wish to thank them for their served on the Children’s Coalition’s board, the America. sacrifice, is evident in her commitment to this human services planning council, the family This weekend 97 veterans from Southwest project. And, Sallie, with a soft British accent, support collaborative executive committee and Louisiana will make the three hour flight to our is repaying a 70-year debt to the brave Amer- the child welfare redesign steering committee. Nation’s capital. In Washington, D.C., the ican soldiers she remembers stationed around The hearts and hands award is being pre- group will tour the WWII Memorial, Korean her Boumemouth, England home as a 12- sented to Anthony Pico for his work with our Memorial and Vietnam Memorial and attend a year-old in 1939. foster care system. Mr. Pico was raised in fos- wreath-laying ceremony at the Tomb of the T.D., Linda and Sallie each exemplify patri- ter homes and at 15 he began working with Unknown Soldier at Arlington National Ceme- otism and service to our great nation as they other youth in the California Youth Connection tery. For many veterans in the group, it is their honor those of the ‘‘greatest generation.’’ One and the Y.O.U.T.H. Training Programs. He first time to tour the WWII Memorial because man, who accompanied his father-in-law on a has worked with the American Bar Associa- of its recent construction. Then, as quickly as Louisiana HonorAir flight last year, expressed tion, Casey Family Programs, Pitzer College, they came, the group will return to a hero’s the profound affect this extraordinary expres- the California Institute for Mental Health, the welcome in Lafayette, Louisiana where family sion of kindness has on those who served so John Burton Foundation for Children Without and friends will gather to show their apprecia- heroically. Homes, and has held positions with the San tion one more time. He said, ‘‘one of the most memorable mo- Francisco Youth Commission—Mayoral Ap- Having met many of these groups in Wash- ments was when we were waiting for our bus pointee Commission and the Blue Ribbon ington, I continue to be awestruck by the reac- to pick us up at the WWII Memorial. As usual, Commission on Children in Foster Care. For tions of these men and women who stood up T.D. was walking around, joking and talking to his dedication to improving our foster care to tyranny in Europe and Asia. Many rarely the Vets as he smoked a cigar. My father-in- system, Mr. Pico was the 2005, 2006, and talk about their service, instead, looking to law took a deep breath and commented on 2007 recipient of the Youth Leadership Award happier times. However, in the company of how well it smelled. It was then that T.D. un- from the City and County of San Francisco others who nobly served, they are able to selfishly offered him a cigar and a light. Well, and is now being honored by his Sacramento frankly discuss their experiences, share tearful Mr. Trahan thought he had won the lottery. partners. stories and remember comrades missing or T.D. gave him a cigar and light and stood This year, the Board of Directors Award killed in action. there talking to him, making him feel like the goes to a coalition of health care providers Since 2007, more than 800 Louisiana vet- most important person in the world.’’ and agencies in Sacramento for launching erans participated in the HonorAir program. Its Unfortunately, shortly after his flight, the California’s first Shaken Baby Syndrome Pre- success is a testament to one man’s vision— man’s father-in-law passed away. His story vention Program (SBS). The Sacramento T.D. Smith. To demonstrate his appreciation to emphasizes the importance of honoring these County Departments of Health and Human our veterans, T.D., a local radio host, started veterans before it is too late. Services, Child Protective Services, and Public the program in January 2007 after learning of Today, I ask my colleagues to join me in re- Health Nursing in conjunction with Catholic a similar effort in North Carolina. Smith began membering the brave men and women who Healthcare West-Mercy, Sutter Medical Cen- gathering sponsors and raising money needed defended America and in commending Lou- ter, Sacramento, the DC Davis Medical Center to pay for the flights, buses and tours. isiana HonorAir, T.D. Smith, Linda Dautreuil, and the Child Abuse Prevention Center have Corporal Earl Flatt, of Broussard, Louisiana, and Sallie Varrelman who convey our appre- championed this important cause. This pro- a combat veteran of Iwo Jima, said, ‘‘My faith ciation in such a remarkable way. gram is modeled after a program in New York in America was increased once again by the f which has greatly reduced incidents of SBS by enthusiasm of the people of Acadiana, who TRIBUTE IN HONOR OF NATIONAL 50 percent in that State. With this program embraced this project and made it all pos- TEACHER APPRECIATION WEEK hospitals will provide educational materials to sible.’’ Corporal Flatt was on the first HonorAir new parents on the dangers of shaking their flight, and he remembered being at the WWII Memorial as one of the most rewarding days HON. MICHAEL K. SIMPSON babies and the prevention techniques that par- OF IDAHO of his life. Referring to T.D., he said, ‘‘Mere ents can use to avoid this heartbreaking form IN THE HOUSE OF REPRESENTATIVES of child abuse. These organizations have words cannot express my appreciation for T.D. come together to reduce the incidence of SBS Smith. His enthusiasm, work habits and patri- Thursday, May 8, 2008 and most importantly protect our children. otism is never exhausted. He would have Mr. SIMPSON. Madam Speaker, in recogni- Madam Speaker, I am honored to recognize been a hell of a Marine.’’ tion of National Teacher Appreciation week, I these individuals and businesses for their ex- T.D.’s leadership and commitment to this rise today to pay tribute to teachers across the traordinary work on behalf of children and project and our veterans is extraordinary. His country. It is always appropriate to thank those families in the Sacramento area, and I would humble demeanor further highlights the con- who devote their lives to the education of our like to thank the Child Abuse Prevention Cen- tributions of the veterans, many whom are Nation’s children, but Teacher Appreciation ter for their dedication to our children’s safety. strangers before the flight, and belies the typ- Week gives us a special opportunity to remind On behalf of the people of Sacramento and ical boisterous on-air radio personality many educators that we support what they do and the Fifth Congressional District of California, I would expect. T.D. ensures the HonorAir pro- want to partner with them in the important ask all my colleagues to join me in honoring gram never fails to remember its mission of work of preparing today’s children to be tomor- their unwavering commitment to Sacramento’s ‘‘celebrating Louisiana’s own—their courage, row’s leaders. youth. their valor, their sacrifice in WWII.’’ Every day, educators inspire, teach, and f In addition to T.D.’s vision, the success make a difference in our lives. Teaching is a ofthe program depends on a myriad of fund- challenging and rewarding job, and those who HONORING LOUISIANA HONORAIR raising and logistics. This program is truly a choose to undertake it deserve our respect AND T.D. SMITH, LINDA broad community effort, and volunteers and gratitude. It should be a priority for Con- DAUTREUIL AND SALLIE throughout the Acadiana area who help raise gress to ensure that teachers have the tools VARRELMAN funds, serve on the board of directors, and act they need to make a difference in the lives of as guardians on each flight, should all be their students, and I am pleased that my col- HON. CHARLES W. BOUSTANY, JR. commended for their tireless efforts. However, leagues recently joined me in expressing their OF LOUISIANA Linda Dautreuil and her mother Sallie full support for America’s educators by unani- IN THE HOUSE OF REPRESENTATIVES Varrelman each stepped forward to pilot the mously passing resolutions in recognition of efforts of others. Ensuring each veteran re- National Teacher Appreciation week. Thursday, May 8, 2008 ceived attention to their specific details, this I am grateful for the positive impact that my Mr. BOUSTANY. Madam Speaker, I rise mother-daughter team serve each flight partici- teachers have had on my life, and I appreciate today to pay honor to America’s World War II pant with care. They plan, organize, and im- the work and dedication of our Nation’s edu- veterans. These veterans represent the best plement each flight guaranteeing the experi- cators in teaching the future business leaders, of our country, and I am grateful to work with ence of a lifetime for these worthy veterans. farmers, and citizens of our country.

VerDate Mar 15 2010 07:34 Nov 09, 2010 Jkt 069102 PO 00000 Frm 00021 Fmt 0689 Sfmt 9920 E:\BR08\E08MY8.000 E08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD May 8, 2008 EXTENSIONS OF REMARKS, Vol. 154, Pt. 6 8389 THE PASSENGER RAIL INVEST- ternatives to our congested highways and next 50 years, recommends that the United MENT AND IMPROVEMENT ACT skies. To alleviate this congestion and States establish a high-speed rail network that OF 2008 AND THE RAIL INFRA- strengthen our energy security, we need to in- spans the entire country. The bill authorizes STRUCTURE DEVELOPMENT AND vest in intercity passenger rail. Amtrak re- $1.75 billion ($350 million per year) for grants EXPANSION ACT FOR THE 21ST moves almost eight million cars from the road to States and/or Amtrak to finance the con- CENTURY annually and eliminates the need for 50,000 struction and equipment for 11 authorized fully loaded, passenger airplanes each year. Other countries already make an annual high-speed rail corridors. The Federal share of HON. JAMES L. OBERSTAR the grants is up to 80 percent. The Secretary OF MINNESOTA commitment to intercity passenger rail. In of Transportation would also award these IN THE HOUSE OF REPRESENTATIVES 2003 alone, France invested $10.6 billion in its rail system; Germany invested $12.4 billion; grants on a competitive basis. Thursday, May 8, 2008 and the United Kingdom invested $7.8 billion. Many of Amtrak’s service routes outside the Mr. OBERSTAR. Madam Speaker, together Outside of Europe, Japan invests about $2 bil- Northeast Corridor suffer from poor service re- with Ranking Member MICA, Subcommittee lion annually to its Shinkansen and China has liability and on-time performance because of Chairwoman BROWN, Subcommittee Ranking launched a plan to spend a total of $162 bil- freight traffic congestion. This congestion pre- Member SHUSTER, and more than 30 other lion from 2006 through 2010 to expand its rail- Members of the Committee on Transportation way system. vents Amtrak from retaining and attracting new and Infrastructure, I am pleased to introduce These investments have paid off: passenger ridership, and increases Amtrak’s operating the ‘‘Passenger Rail Investment and Improve- rail accounts for 32 percent of Japan’s trans- costs. The Department of Transportation In- ment Act of 2008’’ and the ‘‘Rail Infrastructure portation market; the Eurostar, the high-speed spector General recently reported that if Am- Development and Expansion Act for the 21 st passenger train operator between Britain and trak achieved an 85 percent on-time perform- Century’’, or RIDE–21. mainland Europe, recently reported a 21.3 ance outside the Northeast Corridor in fiscal We are introducing these bills between two percent rise in passengers to 2.17 million be- year 2006, it would have saved Amtrak $136.6 significant milestones in railroad history. One tween January and March 2008, compared million, or almost one-third of its operating week ago today, Amtrak marked the beginning with the same period last year, with a 25 per- budget. Amtrak is required by law to have pre- of its 38th year of operation on May 1. This cent increase in ticket revenues. Indeed, you ferred access on freight corridors; however, Saturday, May 10th is National Train Day, can hardly purchase a plane ticket from Lon- freight railroads do not always comply with marking the 139th anniversary of the ‘‘golden don to Brussels or London to Paris because spike’’ being driven into the ground at Prom- rail service is faster and easier than air serv- Amtrak’s access rights. The bill addresses this ontory Summit, Utah, in 1869. The ‘‘golden ice. problem by providing congestion grants to Am- spike’’ bound the last tie connecting the last H.R. ——, the Passenger Rail Investment trak and the States for high-priority rail cor- rail that united the Central Pacific Railroad and Improvement Act of 2008 authorizes more ridors in order to reduce congestion and facili- with the Union Pacific Railroad, completing the than $14.4 billion for Amtrak capital and oper- tate ridership growth. transcontinental railroad. ating grants, state intercity passenger grants, Federal support of Amtrak was cut dras- These two milestones represent two dif- and high-speed rail over the next five years. tically in fiscal years 2000 and 2001, forcing ferent conceptions of passenger rail. The The bill authorizes $6.7 billion (an average of transcontinental railroad was born thanks to $1.34 billion per year) to Amtrak for capital Amtrak to assume a large amount of debt to the support of President Abraham Lincoln. He, grants and $3.0 billion (an average of $606 stay in operation. Amtrak has aggressively tar- along with Civil War leaders, envisioned and million per year) for operating grants. Past in- geted this debt, paying down $600 million from planned the creation of the railroad. Not only consistent Federal support has hampered Am- fiscal years 2002 through 2007. Our bill helps did the completion of the railroad result in the trak’s ability to replace catenaries, passenger Amtrak to take further steps to reduce its debt, ability to deliver goods and people across the cars, bridges, ties, and other equipment nec- authorizing $345 million each year for debt country, it ultimately bound the east with the essary for Amtrak to provide service. These service through FY 2013. This funding will west, further unifying the country as the divide capital grants will help Amtrak bring the North- allow Amtrak to focus its resources on improv- between the North and the South was begin- east Corridor to a State of Good Repair, pro- ing existing services and making additional ning to mend. At the time, the transcontinental cure new rolling stock, rehabilitate existing capital and operational improvements. railroad brought a new sense of wonder and bridges, as well as make additional capital im- enthusiasm for discovery and entrepreneur- provements and maintenance over its entire Finally, no Federal guidelines currently exist ship across the country. network. In addition, the operating grants au- to mediate disputes between commuter rail In contrast, the formation of National Rail- thorized under the bill will help Amtrak pay providers and freight railroads over use of road Passenger Corporation, more commonly salaries, health costs, overtime pay, fuel costs, freight rail tracks or rights-of-way, nor is there known as Amtrak, occurred at a time of wan- facilities, and train maintenance and oper- a standard forum for negotiating commuter rail ing support of intercity passenger rail. Amtrak ations. These operating grants will also ensure operating agreements. The bill establishes a was created after the freight railroads begged that Amtrak can meet its obligations under its forum at the STB to help complete stalled Congress to let them get out of the passenger recently negotiated labor contract. commuter rail negotiations, helping our rail rail business because it was not profitable. In an effort to encourage the development network operate as efficiently as possible. Indeed, Amtrak inherited decrepit stations of new and improved intercity passenger rail and terminals, passenger cars that offered services, the bill creates a new State Capital The Committee is also introducing, dated amenities, and equipment prone to fail- Grant program for intercity passenger rail cap- H.R.ll, the ‘‘Rail Infrastructure Development ure. ital projects, based on the New Starts transit and Expansion Act for the 21st ‘‘Century’’, au- Thirty-seven years after the launch of Am- capital program administered by the Federal thorizing $12 billion of tax-credit bonds and trak, America is on the threshold of a ‘‘renais- Transit Administration. The bill provides $2.5 $12 billion of tax-exempt bonds for high-speed sance’’ for intercity passenger rail that ap- billion ($500 million per year) for grants to rail corridors over the next 10 years. This leg- proaches the enthusiasm of the completion of States to pay for the capital costs of facilities islation will be referred to the Committee on the transcontinental railroad. Last year, Amtrak and equipment necessary to provide new or Ways and Means and I look forward to work- set a ridership record for the fifth year in a improved intercity passenger rail. The Federal row, exceeding 25.8 million passengers. Its share of the grants is up to 80 percent. The ing with Chairman RANGEL and Ranking Mem- ticket revenues rose 11 percent to more than Secretary of Transportation would award these ber MCCRERY on this important initiative. $1.5 billion, the third straight year of revenue grants on a competitive basis for projects Amtrak and high-speed rail are essential to growth. This record of achievement is even based on economic performance, expected create the world’s preeminent national trans- more impressive considering that for the past ridership, and other factors. portation network. eight years Amtrak has contended with an Ad- The National Surface Transportation Policy ministration committed to its bankruptcy. and Revenue Study Commission, established I look forward to working with Members of Indeed, these achievements are occurring to develop a national transportation vision to the Committee and the House to pass these when there is a greater need than ever for al- address surface transportation needs for the important bills.

VerDate Mar 15 2010 07:34 Nov 09, 2010 Jkt 069102 PO 00000 Frm 00022 Fmt 0689 Sfmt 9920 E:\BR08\E08MY8.000 E08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD 8390 EXTENSIONS OF REMARKS, Vol. 154, Pt. 6 May 8, 2008 SUPPORTING COMMEMORATION OF Israel. As the Middle East’s only democratic leagues and fellow citizens to celebrate Moth- ISRAEL’S 60TH ANNIVERSARY country, Israel is an important example for er’s Day. other countries in the region. It has free elec- f tions, a free press, and protection of minority HON. JOHN J. HALL PAYING TRIBUTE TO JERRY OF NEW YORK rights. It is a strong and vibrant democracy GUEDERIAN IN THE HOUSE OF REPRESENTATIVES and a trusted friend. Thursday, May 8, 2008 Maintaining a democratic society has not been easy. Israel has endured neighbors that HON. JON C. PORTER Mr. HALL of New York. Madam Speaker, I have attempted to wipe it off of the map, and OF NEVADA am pleased that I have the opportunity to rise it continues to face threats from terrorist orga- IN THE HOUSE OF REPRESENTATIVES today in strong support and commemoration of nizations which oppose Israel’s existence and Thursday, May 8, 2008 the 60th anniversary of Israel. It is an honor to seek to disrupt any possibility of a peaceful be able to speak on behalf of a country born coexistence for all people. Mr. PORTER. Madam Speaker, it is my dis- in the aftermath of tragedy, erected against Even today as Israel seeks security within tinct pleasure to rise today to honor Mr. Jerry formidable odds, and yet has prevailed to be- its borders and peace with its neighbors, rad- Guederian by entering his name in the CON- come a beacon of hope and an example of ical extremists attack its citizens with daily GRESSIONAL RECORD, the official record of the the prevailing strength of liberty and freedom. rocket barrages. It is crucially important that proceedings and debates of the United States Israel was not simply established, it was we stand by our friend and ally, now and in Congress since 1873. Today I honor Mr. built. It was built through the toil, strife and re- the future. Guederian, the 2008 Nevada Micro-Enterprise solve of the Jewish people and upon the It is important to note that support for Israel Small Business Person of the Year. premise of hope—hope that even in the wake is an issue that Democrats and Republicans As a young child, Jerry had a passion for of the ashes of the holocaust, goodness can here in Congress consistently work on in a bi- shoes. His passion led him to his studies at prevail. And indeed, as we commemorate partisan manner. Our willingness to work to- the Ars Sutoria Institute in Milan, Italy, where Israel’s 60th birthday, we can see that good- gether sends a strong message internationally he graduated with a bachelor’s degree in shoe ness has prevailed. that the United States is committed to our design. Armed with skills, determination, and In many ways, the path of Israel has mim- friend and partner, Israel. talent, Jerry came to the United States from icked that of the United States. It is in no way Madam Speaker, it is truly an honor to Switzerland and opened his first Shoe Lab in perfect and makes its fair share of mistakes. stand by Israel and I know my colleagues join Los Angeles, California in 1989. His success- However, it is part of the same experiment of me in expressing Mazel Tov to all Israelis for ful shoe repair business led him to franchising democracy, and built upon the notion of a a remarkable 60 years and wish Israel and its his stores throughout Southern California. In state becoming a light unto other nations. In people a safe and secure future. 1995, his passion for the business eventually our century, the partnership between Israel f brought him to Las Vegas, Nevada. and the United States has conjoined to thwart Jerry’s business success centers around his the existence of terrorism, advance the fron- IN HONOR OF MOTHER’S DAY philosophy of having the best craftsmanship tiers of human knowledge, and make an indel- and customer service. Customers are often in- ible contribution to the human condition. HON. AL GREEN vited to watch Jerry’s well trained cobblers re- Madam Speaker, I encourage my col- OF TEXAS pair their shoes, bag, or luggage through a leagues to foster the United States’ alliance IN THE HOUSE OF REPRESENTATIVES Shoe Lab ‘viewing window’. and friendship with this great nation to join me Nominees for the Macro-Enterprise Award Thursday, May 8, 2008 in wishing Israel a very happy 60th anniver- are judged by an independent panel of small sary. Mr. AL GREEN of Texas. Madam Speaker, business leaders on a variety of criteria includ- f I wish to honor our Nation’s mothers this ing staying power, employee growth, sales in- IN HONOR OF ISRAEL’S 60TH Mother’s Day because they embody the defini- creases, innovations of service, and contribu- ANNIVERSARY tion of strength, courage and compassion. tions to community-oriented projects. Mr. Mothers are the backbone of American values Guederian and Shoe Lab excelled in every HON. ALLYSON Y. SCHWARTZ and vitality and I ask that my colleagues honor category. the mothers of our Nation on Sunday, May 11, Madam Speaker, I am proud to honor Mr. OF PENNSYLVANIA 2008. Jerry Guederian and his outstanding accom- IN THE HOUSE OF REPRESENTATIVES The history of celebrating Mother’s Day plishments in the Southern Nevada business Thursday, May 8, 2008 began when Anna Jarvis of West Virginia de- community and his recent achievement of Ms. SCHWARTZ. Madam Speaker, I rise sired to honor the life of her deceased mother, being named Nevada’s 2008 Micro-enterprise today to recognize the 60th anniversary of Anna Reeves Jarvis. In 1908, Jarvis’ church Small Business Person of the Year. Yom Ha’atzmaut—Israel’s Independence Day, honored her mother as the first Mother’s Day f to congratulate the Israeli people on their sig- Celebration and then, in 1910, the governor of nificant accomplishment, and to celebrate the West Virginia, William Glasscock, wrote the HONORING THE ACHIEVEMENTS OF strong U.S.-Israel relationship. first Mother’s Day Proclamation, which encour- CHARLIE SCOTT As the daughter of a Holocaust survivor, I aged families to celebrate Mother’s Day. Anna very much appreciate the important role that Jarvis moved beyond her home State and HON. DAVID SCOTT Israel plays in the world for the Jewish people. urged the Federal Government to establish a OF GEORGIA On May 14, 1948, the State of Israel was cre- national day to celebrate Mother’s Day. Even- IN THE HOUSE OF REPRESENTATIVES ated providing a new homeland and safe tually the Sixty-Third Congress passed H.J. Thursday, May 8, 2008 haven for those who most recently had sur- Res. 263. This resolution designated the sec- vived the Holocaust and for Jews before and ond Sunday in May as Mother’s Day. The next Mr. SCOTT of Georgia. Madam Speaker, I since who had been scattered throughout the day President Woodrow Wilson signed a Pres- rise to day to acknowledge racing pioneer world after a millennia of conflict, discrimina- idential Proclamation directing the Nation to Charlie Scott, and to express support for his tion, and persecution. display flags on government buildings and admission into the Georgia Automobile Racing I am proud that the United States was one homes to show America’s love and dedication Hall of Fame Association. of the first countries to recognize Israel. for mothers. Born in Crawford, Georgia, Charlie Scott Today, the U.S.-Israel relationship continues Mother’s Day is a time for Americans na- was the first African-American to drive in an to be strong. And I pledge to work with our tionwide to show affection and respect for the officially sanctioned National Association for trusted ally to pursue a stable and peaceful everyday heroines we call mothers, aunts, Stock Car Auto Racing (NASCAR) event, Middle East, which assures safety and secu- great aunts, grandmothers and great grand- debuting at the Daytona Beach Grand Na- rity for the State of Israel. mothers—women of courage and strength that tional in 1956. As reported by NASCAR.com In the quest for peace in the Middle East, carry our country by raising children and uplift- earlier this year, ‘‘[Charlie] drove a Kiekhaefer the United States has no stronger partner than ing our families. On May 11th, I urge my col- Chrysler. When the checkered flag waved,

VerDate Mar 15 2010 07:34 Nov 09, 2010 Jkt 069102 PO 00000 Frm 00023 Fmt 0689 Sfmt 9920 E:\BR08\E08MY8.000 E08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD May 8, 2008 EXTENSIONS OF REMARKS, Vol. 154, Pt. 6 8391 Scott found himself in 19th place, earning $75 the breakthrough of induced pluripotent stem with devastating diseases for which there are for his efforts.’’ This outing—at Daytona, cells, iPS, which are believed to have the no good treatments and for which there is no where NASCAR was born—was a same qualities. There is no greater promise cure. As Dr. Elias Zerhouni, Director of the groundbreaking effort and no doubt inspired for better treatments and potential cures than National Institutes of Health, stated in Senate countless future NASCAR drivers and fans. there is with a strong Federal investment in testimony in March 2007: ‘‘It is clear today that His illustrious career included races all over ethical forms of medical research of all kinds. American science will be better served and the country in motorcycles and other auto- American scientists should be leading the the nation would be better served if we let our mobiles. He loyally supported the sport world. scientists have access to more cell lines.’’ We throughout his lifetime, and deserves recogni- iPS is a major scientific breakthrough, how- must work to remove the barriers to Federal tion for helping to break the color barrier in ever many have said the viruses and genes funding for embryonic stem cell research. automobile racing. used in the process to create the embryonic- f In closing, Madam Speaker, I want to recog- like state of the human skin cells can cause nize the achievements of Mr. Scott and ex- cancer. If the cancer factor cannot be elimi- WELCOMING HONOR AIR press my gratitude for his courageous efforts nated, and only further research will tell, iPS to make racing an inclusive sport from the cells may be better suited for learning more HON. HEATH SHULER very beginning. about cancer, for example, or for improving OF NORTH CAROLINA f pharmaceutical drugs. So, if it is the case that IN THE HOUSE OF REPRESENTATIVES iPS cells might prove better for some uses Thursday, May 8, 2008 STEM CELL SCIENCE: THE FOUN- and embryonic stem cells better for others, Mr. SHULER. Madam Speaker, I rise to wel- DATION OF FUTURE CURES how could we abandon one for the other? HEARING IN THE SUBCOMMITTEE It is apparent that with the availability of new come World War II veterans from Western ON HEALTH, COMMITTEE ON EN- stem cell lines, the ability of medical research- North Carolina to Washington, DC. I am hon- ERGY AND COMMERCE ers to alleviate the suffering of millions will be ored to have these members of the Greatest bolstered. The United States should support Generation here in Washington to visit the Na- HON. MICHAEL N. CASTLE comprehensive stem cell research of all kinds, tional World War II Memorial and the Tomb of instead of tying the hands of researchers and the Unknowns at Arlington National Cemetery. OF DELAWARE Honor Air of Henderson and Buncombe asking patients with some of the most debili- IN THE HOUSE OF REPRESENTATIVES counties provides free trips for World War II tating diseases to wait even longer. Federal Thursday, May 8, 2008 Veterans to ensure that they have an oppor- policy must be updated to reflect science ad- tunity to see the memorial which honors their Mr. CASTLE. Madam Speaker, I have been vancements. deeply involved in working to expand the Fed- Moving forward, I believe we need to look service to our nation, and to commemorate eral policy on stem cell research over the last for ways to strengthen the ethical framework their fallen comrades. I would like to offer my several years with my friend DIANA DEGETTE, which guides all forms of regenerative medi- sincere gratitude to the dedicated volunteers and I am encouraged to see the House En- cine. Policies should be in place to allow sci- of Honor Air in all of its locations across the ergy and Commerce Committee hold its first entists to pursue fundamental science in- country for making these trips possible. The National World War II Memorial was hearing on the subject of stem cell policy and quires. It will also be essential that Congress opened to the public in May of 2004, and has the foundation for future cures. I look forward work with the National Institutes of Health to since been visited by millions of people from to hearing from the expert witnesses testifying ensure that any change in policy can be im- around the world. Built to honor the 16 million today, everyone from Dr. Elias Zerhouni, Di- plemented with ease. When Congress votes to Soldiers, Sailors, Marines, Airmen, Coast rector of the National Institutes of Health, lead- expand the Federal policy or when the next Guardsmen, and Merchant Mariners who ing scientists, Dr. George Daley of Children’s Administration changes the policy, which I am served our Nation during World War II, the Hospital Boston, and Dr. John Gearhart of confident will happen, we must have the ca- National World War II Memorial serves as a Johns Hopkins University, and Weyman John- pacity to move forward quickly to expand the reminder of their sacrifice and service to the son, Jr. who chairs the National Multiple Scle- Stem Cell Registry to include the many lines American people. I am thankful that we have rosis Society, about the ever important field of derived post August 9, 2001, and to supply finally found a permanent memorial here in the regenerative medicine. There have been a new Federal grants. couple of very exciting developments in the We simply must pursue all avenues of Nation’s capital to honor their service. On behalf of the residents of North Caro- field recently, underscoring the critical role of science that show promise for advancing lina’s 11th District and all Americans, I offer the United States’ scientific community and human health—and the role of the Federal our deepest appreciation to these visitors for the need for even more coordinated Federal Government in carrying this out is paramount. their service, their sacrifice, and their presence research. For more than a century, the National Insti- here today. These men and women represent Announcements from scientists about re- tutes of Health has promoted cooperation the bravery and benevolence of America— moving single cells from embryos to develop among the scientists who receive Federal re- past, present, and future. embryonic stem cell lines, and using human search dollars, and has made knowledge Madam Speaker, I ask that my colleagues skin cells in ways that offer similar promise as sharing a priority. While state-funded stem cell join me in honoring and welcoming these dis- embryonic stem cells, underscores the impor- initiatives are important, without the support of tinguished veterans from Western North Caro- tance of pursuing all avenues of science that Federal Government there remains a void. lina to the Capital of our grateful Nation. could advance human health. In just 10 short years since Dr. James The recent discoveries are significant, but Thompson announced the first embryonic f we must remember that important scientific stem cell line, we have made great strides. HONORING SAMUEL H. HOWARD advances do not always translate to medical Without the Federal funding restriction, who ON THE OCCASION OF HIS SIXTY- advances. It is for this reason that I believe, knows where we would be today. Nearly NINTH BIRTHDAY and scientists agree, it would be irresponsible three-quarters of Americans from all walks of to abandon embryonic stem cell research, life support embryonic stem cell research, as HON. JIM COOPER which continues to show the most immediate does the majority in Congress who support ex- OF TENNESSEE promise. panding the Federal stem cell policy to allow IN THE HOUSE OF REPRESENTATIVES My passion for advancing and expanding re- for funding and oversight of embryonic stem search on stem cells comes from years of cell research and who voted for the Stem Cell Thursday, May 8, 2008 meeting with those who are suffering from dia- Research Enhancement Act, which with great Mr. COOPER. Madam Speaker, I rise today betes, Alzheimer’s, cancer, heart disease, Par- disappointment was vetoed twice by President to honor the 69th birthday of Samuel H. How- kinson’s and their loved ones—and from the Bush. ard, a man who has made an indelible impact many scientists I have had met over the years I cannot stress enough the promise of stem on the health of Americans and whose life is who have hailed the promise of the cell research of all kinds for alleviating the suf- an inspiration to us all. pluripotency, that is the ability to become any fering of the 100 million American patients and During his more than 40-year career, Sam cell in the body, of embryonic stem cells, and so many more around the globe who are living has served as a White House fellow, been a

VerDate Mar 15 2010 07:34 Nov 09, 2010 Jkt 069102 PO 00000 Frm 00024 Fmt 0689 Sfmt 9920 E:\BR08\E08MY8.000 E08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD 8392 EXTENSIONS OF REMARKS, Vol. 154, Pt. 6 May 8, 2008 leader at colleges and health care organiza- There are about 1.5 million Texas children vidual has to wait five months before receiving tions, and founded and led several corpora- in households earning less than 200 percent SSDI benefits. Third, after receiving SSDI ben- tions charting a course to improve health care of the federal poverty level and 750,000 to efits an individual has to wait two more years for all Americans. 850,000 of them are eligible for Medicaid or before they can receive Medicare coverage. A proud graduate of Oklahoma State Uni- SCHIP coverage. Three fourths are not en- More than 26 percent of individuals with sig- versity, Sam also holds a master’s degree rolled in either program, meaning there are nificant disabilities have no health insurance from the prestigious Stanford University. He 200,000 to 300,000 kids in Texas who are eli- during this two-year wait. Before becoming has received multiple awards for his business gible but not enrolled in SCHIP. disabled, most of these people worked full acumen, including being inducted by his alma Tragically, the state doesn’t even use the all time and paid into Medicare like everyone mater into the Oklahoma State University the funds the federal government has provided else. School of Business Hall of Fame. Sam was for our children who are going without basic Now, when they need help the most, they twice awarded the Federation of American care. Eventually the money—more than $850 are required to wait without coverage. This bill Hospitals President’s Achievement Award. million in the last seven years—goes to other would phase out the two-year wait over 10 In 1994, Sam received the Nashville states or back to the Federal government. years and completely eliminate the waiting pe- NAACP Branch Image Award for Lifetime Bipartisan majorities in both houses of Con- riod for people with life-threatening conditions. Achievement. His life has shown how much gress have supported an expansion of SCHIP Finally, I strongly support restoring funding one can achieve when grounded by faith, fam- that would help solve some of Texas’s prob- for the Healthy Community Access Program, ily, and fortitude. lems twice over the last year. Sadly, President which in my community has helped enroll an Madam Speaker, in Tennessee we are for- Bush vetoed our efforts both times, but we will additional 250,000 individuals in Medicaid and tunate to have Sam Howard as a pillar of our not give up until our children have the health CHIP, while also directing the uninsured away community, and I am privileged to call him my care they need. from the ERs and toward an appropriate friend. Today, on his birthday, I rise to salute In the meantime, we have opened other health care home. him, express my gratitude for his service to his fronts in the battle to improve the quality of fellow man and wish him warm blessings for health care in our country. The Health Centers To address this issue, I introduced the Com- many years to come. Happy Birthday, Sam. Renewal Act was introduced last year and ap- munity Coalitions for Access and Quality Im- provement Act, H.R. 3561. This legislation f proved by the Subcommittee on Health on April 23, and will go to the full committee would provide grants to community health ac- COVERING THE UNINSURED soon. cess coalitions to implement best practices Health centers represent our Nation’s larg- proven to reduce health care costs, achieve HON. GENE GREEN est primary health care system and serve as better health outcomes and improve access to health care for uninsured and low-income OF TEXAS a medical home to more than 15 million Amer- Americans. IN THE HOUSE OF REPRESENTATIVES icans, most of whom are uninsured or have low incomes. Congress should enact legislation to provide Thursday, May 8, 2008 By providing people who are medically un- all Americans with health insurance. Ideally, Mr. GENE GREEN of Texas. Madam derserved with primary and preventive health no child, no disabled worker, and no unin- Speaker, I rise today to discuss the issue of care, the health centers reduce the need for sured woman would suffer from a lack of ade- the uninsured in recognition of National Unin- expensive specialty care in hospitals and quate health care. As we work toward that sured Week in our country. emergency rooms. The Health Centers Re- goal, Congress should take every opportunity In recent years the cost of health care has newal Act will allow health centers to nearly to put in place policies that provide as many grown wildly. Those who can afford private or double the number of individuals they can people as possible with quality, affordable employer-based health insurance are fortu- serve. health insurance. nate. Unfortunately, 47 million Americans lack The Community Mental Health Services Im- health insurance, including nine million chil- provement Act, which was introduced in Janu- f dren—and in Texas one out of every four indi- ary, will improve medical care for often-ne- viduals is without health insurance. glected mental health patients. Community HONORING ELKS NATIONAL YOUTH We need a national health care plan, but mental health organizations serve more than WEEK until we make it a national priority, Congress six million adults and children across the will continue to make incremental steps. country. HON. LOIS CAPPS That’s why Congress has worked so hard to Many of these people are Medicaid bene- OF CALIFORNIA include more children under the State Chil- ficiaries, children in foster care, the destitute, dren’s Health Insurance Program (SCHIP) and homeless and uninsured. Unfortunately, com- IN THE HOUSE OF REPRESENTATIVES I have introduced the Health Centers Renewal munity mental health centers have been Thursday, May 8, 2008 Act (H.R. 1343), the Community Mental Health chronically underfunded for many years and Services Act (H.R. 5167) and the Ending the struggle to meet the basic health needs of the Mrs. CAPPS. Madam Speaker, I rise today Medicare Disability Waiting Period Act (H.R. people they serve. on behalf of the Santa Maria Elks Club to 154). This bill will allow mental health care pro- honor the first week of May as Elks National Ten years ago Congress created the SCHIP viders to recruit medical primary care doctors Youth Week in tribute to our junior citizens to help provide health insurance for children of to care for patients with serious mental illness. and to honor them for their achievement and low-income workers. These are hard-working Patients with mental illnesses die on average contributions to their community, State and families whose jobs don’t offer employer-spon- 25 years earlier than the average American, Nation. sored health insurance, or whose dependant demonstrating the criticality of the need for Youth Week is designed to guide, inspire coverage for children is unaffordable. better health care. and encourage our youth to serve their com- Nationwide there are approximately 9 million The Ending the Medicare Disability Waiting munity and help prepare them for the duties uninsured children. Alarmingly, more than 1.5 Period Act was introduced last year would and opportunities of citizenship. Across the million of those children live in Texas. Our close a loophole that allows more than a mil- country, our Nation’s young people are be- state had significant barriers against the en- lion people with disabilities to go without med- coming active citizens and learning the impor- rollment of new children in SCHIP, and even ical care for extended periods of time. tance of civic involvement. I firmly believe in has policies that have kicked kids out of the When Medicare expanded in 1972 to in- encouraging the sense of community dem- program. clude individuals with significant disabilities, onstrated by these ambitious and engaged As a result, Texas SCHIP enrollment has Congress stipulated that they had to first re- young people. dropped from about half a million in 2003 to ceive Social Security Disability Insurance As a mother and a grandmother, I am 350,000 in 2007. While children are (SSDI) for two years before becoming eligible amazed by the strength of character I see in unceremoniously removed from SCHIP, the for Medicare, resulting in a three step process. junior citizens. I commend the goals and number of uninsured continues to grow in our First, the Social Security Administration has ideals of the Santa Maria Elks Club and am state. to determine SSDI approval. Second, an indi- proud to honor America’s future leaders today.

VerDate Mar 15 2010 07:34 Nov 09, 2010 Jkt 069102 PO 00000 Frm 00025 Fmt 0689 Sfmt 9920 E:\BR08\E08MY8.000 E08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD May 8, 2008 EXTENSIONS OF REMARKS, Vol. 154, Pt. 6 8393 H. RES. 49, TO ESTABLISH NA- Issues, Sports Venue, and Legislative Com- TROOPS NEED YOU TIONAL LETTER CARRIERS AP- mittees. He is currently serving as Mayor Pro PRECIATION DAY Tempore, and is responsible for the unprece- HON. JOE WILSON dented fiscal growth of the City of Laredo for OF SOUTH CAROLINA HON. BETTY McCOLLUM the last 6 years through his work on landmark IN THE HOUSE OF REPRESENTATIVES ordinances and legacy projects. Councilman OF MINNESOTA Thursday, May 8, 2008 IN THE HOUSE OF REPRESENTATIVES Belmares also has admirably served the com- munity of Laredo, Texas, through his civic Mr. WILSON of South Carolina. Madam Thursday, May 8, 2008 work with the March of Dimes, Muscular Dys- Speaker, throughout our history, Americans Ms. MCCOLLUM of Minnesota. Madam trophy, and the American Cancer Society. He have risen up to help our troops win wars— Speaker, I rise today in strong support of H. enjoys coaching the Gateway Girls Softball from merchants and storekeepers in the Revo- Res. 49, a resolution that establishes National League, and the Boys and Girls Club flag foot- lutionary War to Rosie the Riveter in World Letter Carriers Appreciation Day. ball. War II. Today, that tradition continues, as av- Letter carriers are vital to the United States Councilman Belmares is a truly deserving erage citizens directly support our troops in economy and help keep families and friends in recipient of the Liberty Bell Award, which is Iraq and in Afghanistan. touch with one another. They provide mail given out annually by the Laredo-Webb Coun- A non-profit charity called Troops Need You service 6 days a week, in good and bad ty Bar Association to those who have dem- delivers resources our troops need—from weather, to more than 144 million households. onstrated exemplary community service, and medical supplies and equipment to school The United States Postal Service employs contributed to good governance in the commu- supplies and water purification systems, more than 705,000 letter carriers who deliver nity. Troops Need You was founded by a military more than 43 tons of mail each year. This Madam Speaker, I am honored to have had man himself, Major Eric Egland, an intel- averages to approximately 2,300 letters, this time to recognize the dedication of Coun- ligence officer and former counter-terrorism cards, magazines, and circulars per carrier per cilman Belmares to the City of Laredo, and I operative who has served around the world, day. thank you for this time. including in Afghanistan and Iraq. He knows In addition, I would like to specifically honor what it takes to win. Perry Bennet Schmitt, who has delivered mail f Troops Need You has already mobilized to my District Office since I was first elected over one thousand Americans, and is based PAYING TRIBUTE TO HARVEY to Congress in 2000. My staff and I look for- on innovations so effective that they earned ALLEN ward to his daily visits where he brightens our not only a partnership with General David day with jokes and stories. Perry has served Petraeus but even praise from the President the people of Saint Paul as a letter carrier for HON. JON C. PORTER of the United States himself. 28 years and has delivered mail on his current OF NEVADA We are at a critical point in Iraq, defeating route for over twenty. It takes him six hours to IN THE HOUSE OF REPRESENTATIVES the terrorists to deny them a safe haven to at- deliver mail each day to over 350 stops. Perry Thursday, May 8, 2008 tack American families and our allies. Success is a designated letter carrier trainer and during requires more Americans to rise up and help his time with the Post Office has trained over Mr. PORTER. Madam Speaker, it is my dis- our troops succeed. A great way to do that is a hundred carriers. He is also an active mem- tinct pleasure to rise today to honor my friend through Troops Need You. Harvey Allen by entering his name in the CON- ber of Local 28 of the National Association of f Letter Carriers, which represents over 1,000 GRESSIONAL RECORD, the official record of the members. proceedings and debates of the United States TRIBUTE TO JOHN SCHWARTZ I want to thank Perry and all letter carriers Congress since 1873. Today I pay tribute to for their dedication and urge my colleagues to Harvey Allen for his service as an educator in HON. MARILYN N. MUSGRAVE support this resolution. the Nevada higher education system for over OF COLORADO thirty years. f IN THE HOUSE OF REPRESENTATIVES Harvey served as a full time professor of HONORING COUNCILMAN GENE Broadcasting, English, Journalism, Speech, Thursday, May 8, 2008 BELMARES Acting, and Theater at the Community College Mrs. MUSGRAVE. Madam Speaker, I rise of Southern Nevada for 30 years before retir- today to pay tribute to the heroism and self HON. HENRY CUELLAR ing at age 75. His dedication to higher edu- sacrifice of firefighter John Schwartz, 38, who OF TEXAS cation stretched beyond the classroom as he died in the line of duty on Tuesday, April 15, IN THE HOUSE OF REPRESENTATIVES directed the first student produced play at 2008, while driving to the scene of a brush fire CCSN, served as faculty advisor for the col- threatening a nearby community. Thursday, May 8, 2008 lege newspaper, served as a Faculty Senate When John heard the distress call Tuesday Mr. CUELLAR. Madam Speaker, I rise today Member, and established an internship pro- afternoon from nearby Ordway, Colorado, he to honor Councilman Gene Belmares, who will gram for Broadcasting and Journalism stu- jumped in his fire engine with Fire Chief Terry be presented with the Liberty Bell Award by dents. During this time, Harvey also served as DeVore to try to help. A massive wild fire was the Laredo-Webb County Bar Association on a visiting professor at the University of Nevada burning across the prairie and the smoke was May 9, 2008. Las Vegas. Harvey’s own education includes so thick that John and Terry could not see the Gene Belmares is the son of a decorated earning four degrees from Modesto Jr. Col- bridge burned out in front of them. Terry’s fa- WorId War II veteran, Ignacio Belmares, and lege, San Diego State University, and the Uni- ther Bruce, a fire department volunteer, was Elvira Belmares. He grew up in Laredo, versity of Nevada, Las Vegas. right behind them when he noticed their tail Texas, and attended United High School and In addition to his work in higher education, lights disappear. Bruce and the other fire- Laredo Junior College. Gene utilized his mar- Harvey has been influential within the broad- fighters stopped and tried to fight the inferno keting skills to great effect in his work with casting community. In 2007, Harvey was in- in front of them, but it was a hopeless fight. some of South Texas’s most prestigious com- ducted into the Nevada Broadcasters Hall of John and Terry were good friends and panies such as Thomas Petroleum, Fame citing his many professional accomplish- worked together at the Arkansas Valley Cor- Arguindegui Oil, and WestWind Homes. Gene ments which included hosting numerous radio rectional Facility and John had recently joined is now enjoying his work with the marketing talk shows and writing for several Las Vegas Olney Springs’ volunteer fire department. and sales team at the famous La Posada publications. John’s father told a newspaper that John Hotel, one of the oldest hotels in South Texas Madam Speaker, I am proud to honor the joined the department because he liked the that is leading the revitalization of downtown life of Harvey Allen. His dedication to enriching idea of doing something for the community. Laredo. lives through education and broadcasting has John attended Centennial High School in Councilman Belmares was elected to the touched countless Nevadans. I applaud his ef- Pueblo, Colorado, and served in the U.S. Air Laredo City Council in 2002, and is seated on forts and wish him the best in his future en- Force for 4 years before returning to the the Metropolitan Planning Organization, Water deavors. Fowler area. John raised horses, cattle, and

VerDate Mar 15 2010 07:34 Nov 09, 2010 Jkt 069102 PO 00000 Frm 00026 Fmt 0689 Sfmt 9920 E:\BR08\E08MY8.000 E08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD 8394 EXTENSIONS OF REMARKS, Vol. 154, Pt. 6 May 8, 2008 goats on a small ranch and he loved to hunt laureate program at the Lehman college for a nology, biotechnology, and biomedical health and shoot with his sons, ages 4 to 15, John, mere 2 years. In a time when there is a 6 year science programs; Introduced the Open Court Wyatt, Wesley, and Cody. wait list to attend nursing college, the creation reading program; and Continually produced John left behind his four boys, as well as his of this program serves a model to produce students who outperform their Kansas and US parents John and Toni Schwartz. more qualified nurses in an attempt to allevi- peers on standardized tests, including the Madam Speaker, I am honored to represent ate the nursing shortage. AUA also hopes to ACT and the SAT. For several years, Shaw- John and other men and women who sacrifice provide students with scholarships, in order to nee Mission produces about 20 percent of the so much to care for their communities. I urge allow those people from lower-income families Kansas National Merit finalists, despite having my colleagues to join me in mourning the loss to pursue higher education. only 6 percent of the state’s population. of a great American and in expressing heart- It is my sincere hope that other Colleges Although a talented administrator, Dr. felt gratitude and sincere appreciation for the and Universities around the world will join the Kaplan has made it a point to substitute teach service of John Schwartz. American University of Antigua & Barbuda in in every building throughout the school year. f providing feasible alternatives to the nursing Perhaps because of this, her teachers and ad- shortage, while simultaneously allowing mi- ministrators know how much she cares, and RECOGNIZING WAPSIE VALLEY norities and people from lower income families understands their difficulties and joys at the WARRIORS VOLLEYBALL TEAM to further their education. classroom level. Educators today face new f challenges, with increasing numbers of chil- HON. BRUCE L. BRALEY dren who do not speak English at home and TRIBUTE TO SHAWNEE MISSION OF IOWA with problems of school funding and federal SCHOOL DISTRICT SUPER- IN THE HOUSE OF REPRESENTATIVES education programs. Despite it all, this district INTENDENT Thursday, May 8, 2008 has continued to succeed. Madam Speaker, thank you for allowing me Mr. BRALEY of Iowa. Madam Speaker, I HON. DENNIS MOORE the time to pay tribute to an outstanding edu- rise today to recognize the outstanding results OF KANSAS cator who I am proud to call a friend, Dr. Mar- achieved by the Wapsie Valley Warriors IN THE HOUSE OF REPRESENTATIVES jorie Kaplan. volleyball team at the State volleyball tour- f nament in Cedar Rapids this past fall. Thursday, May 8, 2008 Wapsie Valley and Holy Trinity were tied at Mr. MOORE of Kansas. Madam Speaker, I RECOGNIZING DULUTH CENTRAL two games apiece going into the final match. rise today to acknowledge Dr. Marjorie HIGH SCHOOL FOR PARTICIPA- With the game tied at 12, Wapsie Valley got Kaplan, Superintendent of the Shawnee Mis- TION IN THE 2008 WE THE PEO- a big hit from Carly Wehling and a tip by sion School District, who is retiring at the end PLE NATIONAL FINALS Eryca Hingtgen to get a match point at 14–12. of this school year, after 16 years of extraor- Holy Trinity fought off the match point with a dinary leadership for her district, and for the HON. JAMES L. OBERSTAR spike, but Wehling finished out the game with greater Kansas City area. OF MINNESOTA her 13th and final kill of the match. Dr. Kaplan came to Shawnee Mission in IN THE HOUSE OF REPRESENTATIVES The third ranked Wapsie Valley (39–1) won 1992 after a distinguished career in Arizona. Thursday, May 8, 2008 the first two games and withstood a Holy Trin- She is returning to the Phoenix area where ity comeback to earn a 27–25, 26–24, 22–25, she will be close to her children and grand- Mr. OBERSTAR. Madam Speaker, from 20–25, 15–13 victory and their second straight children. May 3–5, 2008, more than 1200 students from Class 1A State volleyball championship. I con- My congressional district is blessed with across the country visited Washington, D.C. to gratulate the Warriors on their hard fought vic- some of the best schools in the country. I take part in the National Finals of We the Peo- tory. know many Members of Congress feel that ple: The Citizen and the Constitution, one of Madam Speaker, I am extremely proud of way, but I know this is the case. Where I live, the most extensive educational programs in the accomplishments of the Warrior volleyball among many outstanding school districts, the country developed to educate young peo- team, both on and off the court, and I am Shawnee Mission schools remain the gold ple about the U.S. Constitution and Bill of proud to serve them in Congress. standard in our area. During her tenure, Dr. Rights. Administered by the Center for Civic f Kaplan has reinforced this perception and con- Education, the We the People program is tinually raised this standard. funded by the U.S. Department of Education CONGRATULATING AMERICAN UNI- I have come to admire and respect Dr. by act of Congress. It is important to note that VERSITY OF ANTIGUA & BAR- Kaplan, who has never been shy about giving results of independent studies of this nation- BUDA me very good advice on education issues and ally acclaimed program have shown that We legislation. I know how much good schools the People students have gained a greater po- HON. CHARLES B. RANGEL mean to my constituents, so I have always litical tolerance and attained an excellent un- OF NEW YORK heeded her expertise and guidance. derstanding of the Constitution and Bill of IN THE HOUSE OF REPRESENTATIVES The Shawnee Mission district includes older Rights. With many reports and surveys indi- suburban areas and is surrounded by newer, cating the lack of civic knowledge and civic Thursday, May 8, 2008 fast growing areas. Under Dr. Kaplan’s leader- participation, I am pleased to support such a Mr. RANGEL. Madam Speaker, I rise today ship, and thanks to confidence in the district, superb program that is producing an enlight- to congratulate American University of Antigua Shawnee Mission patrons have passed a se- ened and engaged citizenry. & Barbuda on its newly announced initiative ries of school bond issues which allowed the I am proud to announce that the state of establishing a school that will address the district to renew its building stock, while com- Minnesota was represented by a class from nursing shortage occurring in the United bining some elementary school populations. Duluth Central High School at this prestigious States and abroad. During the past 16 years, Dr. Kaplan and national event. These outstanding students, The American University of Antigua & Bar- Shawnee Mission schools have: through their knowledge of the U.S. Constitu- buda aims to create a nursing school that pro- Brought rigorous International Baccalaureate tion, won their statewide competition and vides Caribbean nationals with a place to pur- programming to area high school students earned the chance to come to our nation’s sue higher education in the healthcare indus- since 1996, and greatly increased advanced capital and compete at the national level. The try as well as an alternative location of study placement classes; Strengthened the district’s names of these outstanding students from Du- for international students. Through its’ historic Center for International Studies and further de- luth Central High School are: Leanna Albert- affiliation with CUNY’s Lehman College, AUA veloped the languages offered through the son, Sharlene Balik, Krista Benko, Gregory hopes to improve the medical standards of program; Transformed career and technical Bongey, John Brakke, Whitney Buck, Jessica care throughout the Caribbean. The program education courses and programs with award Churchill, Kylie Dalager, Alissa EIke, Chad allows AUA students who have completed winning programs in culinary arts, commercial Erlemeier, Zack Filipovich, Jordan Foschi, their Associates Degree in Nursing with the baking, graphic design, multimedia, and com- Nicholas Foucault, Robert Gitar, Daniel option to transition directly into the bacca- puter training; Brought in engineering tech- Gunderson, Matthew Harold, Elizabeth

VerDate Mar 15 2010 07:34 Nov 09, 2010 Jkt 069102 PO 00000 Frm 00027 Fmt 0689 Sfmt 9920 E:\BR08\E08MY8.001 E08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD May 8, 2008 EXTENSIONS OF REMARKS, Vol. 154, Pt. 6 8395 Hauschildt, Garth Heikkinen, Amy Hietala, made it out to be. Last year, the court ap- Las Vegas community. I would also like to Grace Larsen, Joseph Makynen, Marina proved 2,370 warrants seeking wiretaps of congratulate him on receiving the Small Busi- McCuskey, Jason Michalicek, Hannah Olson, people in this country believed to be in con- ness Person of the Year at the 2008 Small tact with international terrorist organiza- Liza Pierre, Jessica Primozich, Molly Prudden, tions. Business Awards. Matthew Roberts, Eric Stokes, and Joseph The court denied just three warrant appli- f Von Rueden. cations and partially denied another; 86 TRIBUTE TO MIKE KEEFE While in Washington, the students partici- times the court asked the government to pated in a three-day academic competition amend its applications before granting ap- that simulates a congressional hearing in proval. The year before, the court denied HON. TOM LATHAM which they ‘‘testified’’ before a panel of judges. only one application and that just partially. OF IOWA Students demonstrated their knowledge and This hardly sounds like an onerous approval IN THE HOUSE OF REPRESENTATIVES process. understanding of constitutional principles as Since the number of warrants being sought Thursday, May 8, 2008 they evaluated, took, and defended positions has more than doubled since 9/11, it also Mr. LATHAM. Madam Speaker, I rise to rec- on relevant historical and contemporary sounds as if the court is having no problem ognize the retirement of Mike Keefe from the issues. keeping up with the workload. The suspicion State of Iowa Fire Marshall’s Office, and to ex- I also wish to commend the teacher of the here is that the Bush administration simply press my appreciation for his dedication and class, Ethan Fisher, who was responsible for doesn’t want any checks on its eaves- commitment for the past 32 years for the safe- preparing these young constitutional experts dropping powers. And in seeking a rewrite of the surveillance law, the administration did ty of Iowans. for the National Finals. Also worthy of special After receiving a business administration de- recognition is Jennifer Bloom, the state coordi- in fact seek to greatly expand its powers to wiretap without warrants. gree in 1975, Mike began volunteering for the nator, who is responsible for implementing the The great number of warrants granted, Decorah, Iowa fire department. While on the We the People program in the great state of compared to just three denied, indicates that job, the fire department was called to a fire at Minnesota. the spy court is no great impediment to na- the church he attended and where his mother I applaud the exceptional achievements of tional security. worked as a secretary. He rescued his mother these students. f by helping her out a window. The fire officials f PAYING TRIBUTE TO JADE asked Mike to assist in their investigation, and FISA COURT IS DOING ITS JOB ANDERSON afterwards Mike was encouraged to apply for a position with the Iowa Fire Marshall’s Office. HON. MARK UDALL He was offered and accepted a job in 1976 HON. JON C. PORTER with the office as an investigator. Over the OF COLORADO OF NEVADA years Mike has investigated nearly 3,000 fires, IN THE HOUSE OF REPRESENTATIVES IN THE HOUSE OF REPRESENTATIVES providing reliable and dedicated service to Thursday, May 8, 2008 Thursday, May 8, 2008 many Iowans. Mr. UDALL of Colorado. Madam Speaker, Mr. PORTER. Madam Speaker, it is my dis- I know that my colleagues in the United as Congress has debated how to update the tinct pleasure to rise today to honor Jade An- States Congress join me in commending Mike Keefe for his service to the State Fire Mar- Foreign Intelligence Surveillance Act, FISA, derson by entering his name in the CONGRES- shall’s Office and the people of Iowa. I con- some have said that law is completely out- SIONAL RECORD, the official record of the pro- dated. ceedings and debates of the United States sider it an honor to represent Mike in Con- I support revisions to reflect changes in Congress since 1873. Today I pay tribute to gress and I wish him and his wife, Susan, a technology since FISA was enacted, but I Jade Anderson, owner and CEO of Capstone long, happy and healthy retirement. think it is important to recognize that the basic Brokerage, Inc., for his small-business f law is sound and does not prevent the Gov- achievements throughout the Las Vegas com- LYNN FIELDS—COMMUNITY ernment from acting to protect Americans. munity. SERVANT FOR EDUCATION That point was well put in a recent editorial Jade Anderson is a graduate from the Uni- in the Rocky Mountain News, noting that the versity of Nevada, Las Vegas with a degree in HON. TED POE Justice Department has reported that in 2007 Business Administration. He began Capstone OF TEXAS the special FISA court approved some 2,370 Brokerage Inc. shortly after graduation, first as IN THE HOUSE OF REPRESENTATIVES warrants authorizing surveillance of people in a part-time venture for about five years. He the United States believed to be in contact shifted gears in 2002 deciding to put all of his Thursday, May 8, 2008 with international terrorist organizations while energy into growing his company. His com- Mr. POE. Madam Speaker, the Humble ISD denying only 3 requests for such warrants. pany also serves as a connection to other board of trustees will say farewell to a dedi- This led the newspaper to conclude that successful entrepreneurs and business minds cated public servant on May 13, 2008 when ‘‘The great number of warrants granted, com- around the globe. In addition to running Cap- my friend Mrs. Lynn Fields retires after serving pared to just three denied, indicates that the stone, Jade is a member of the Las Vegas 14 years as a board member. spy court is no great impediment to national Chapter of the Entrepreneurs Organization I met Lynn when she was a reporter for the security’’ and, with regard to the Bush admin- (EO). Through this organization, he has been Baytown Sun back in the 1980s and I was a istration’s proposals to rewrite FISA, ‘‘The sus- able to apply to the Massachusetts Institute of Texas Judge. Since those days, Lynn Fields picion here is that the Bush administration Technology’s (MIT) Entrepreneurs Masters has served as the voice of a mother and com- simply doesn’t want any checks on its eaves- Program where he meets annually for one munity volunteer on the Humble ISD school dropping powers.’’ week with other CEOs and entrepreneurs and board who always looked out for the best in- I think that is a pretty accurate appraisal. listens to business leaders and professors terests of our children. She faithfully carried For the information of our colleagues, here speak on issues related to running their own the torch of public service passed to her from is the full text of the editorial: businesses her father-in-law, Jack Fields Sr., who pre- [From the Rocky Mountain News, May 2, Today, Jade is also focused on making cer- viously served the district as board member 2008] tain that his company gives back to the com- for 21 years. SPY COURT KEEPING UP WITH WIRETAP munity. He gives a large portion of time to Over the years, she worked hard at improv- REQUESTS Olive Crest, a nonprofit organization that sup- ing services for students in both educational The Bush administration has been assert- ports the prevention and treatment of child and social areas. She initiated the district’s ing the right to wiretap without seeking a abuse. He also serves on the Board of Direc- pursuit of a Spanish immersion program at warrant from a special court set up for that tors of Olive Crest and assists with fundraising two Humble elementary schools. She led the purpose under the 30-year-old Foreign Intel- ligence Surveillance Act. and volunteer efforts. district with efforts to reduce alcohol and drug However, a Justice Department report on Madam Speaker, I am proud to honor Jade use among children with programs such as the court’s wiretap approvals suggests it is Anderson and would like to recognize his ‘‘Common Ground,’’ which resulted in in- not quite the hurdle the administration small-business accomplishments within the creased awareness of the dangers of binge

VerDate Mar 15 2010 07:34 Nov 09, 2010 Jkt 069102 PO 00000 Frm 00028 Fmt 0689 Sfmt 9920 E:\BR08\E08MY8.001 E08MY8 erowe on DSK5CLS3C1PROD with BOUND RECORD 8396 EXTENSIONS OF REMARKS, Vol. 154, Pt. 6 May 8, 2008 drinking and the importance of students’ mak- our district, Lynn always kept the discussion Jack Fields has been a long-time friend of ing responsible decisions in social situations. focused on what’s best for children.’’ mine, and he is extremely proud of Lynn’s ac- Many of her friends and colleagues have Lynn Fields has also experienced many complishments as well. ‘‘My wife has given of spoken kind words in describing her dedica- wonderful personal moments in her 14-year herself, unselfishly, for the students of our tion to public service. ‘‘Lynn’s heart is as big tenure as school board member including the area,’’ he said. ‘‘She has led in the areas of as the state of Texas,’’ said Dave Martin, opportunity to hand two of her children their character, alcohol and drug education, and President of the Humble ISD Board of Trust- high school diplomas at their graduation. She Spanish immersion for those students wishing ees. ‘‘We could always count on Lynn’s guid- also watched with pride when the board of to become bilingual. She is an outstanding ance to lead us down the direction and path trustees named an elementary school after her woman, mother and wife. Our area and my that put the morality and ethical issues of our late father-in-law Jack Fields Sr. students first.’’ family are benefited by her years of service. Lynn Fields and Humble ISD Super- In addition to her efforts in the school dis- She is the model for those who serve in their intendent, Dr. Guy Sconzo, have hosted a trict, she is also an active community leader in communities. I could not be more proud of monthly cable access show called ‘‘Your several organizations. Lynn is a member of her. I am honored to be her husband. I love Schools,’’ which spotlights people and pro- Humble Area First Baptist Church. She is a her very much.’’ Light Keeper member of Mothers Against grams within the district. She received the It is an honor today to recognize the great Drunk Driving and serves as MADD Southeast School Bell Award for outstanding media cov- contributions that Lynn Fields has made to Texas Regional Council Chair. She has been erage of educational news for the program by Humble ISD and the community. Madam a long-time advocate for women and children. the Texas Retired Teachers Association. Speaker, we thank Lynn, for her years of serv- ‘‘Lynn is frankly just one of the kindest, most Lynn started the Bay Area Women’s Center in ice, principled leadership and dedication to our caring servant leaders I have ever met,’’ said Baytown in 1981. With the help of her hus- Dr. Sconzo about working with Lynn. ‘‘Through band, former Congressman Jack Fields, they children. I wish her the best of luck in her fu- literally every very difficult budget development raised funds to help open ‘‘The Door,’’ a shel- ture endeavors. crisis and challenging growth issues that face ter for battered women in the Humble area. And that’s just the way it is.

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