Congressional Record United States Th of America PROCEEDINGS and DEBATES of the 105 CONGRESS, SECOND SESSION

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

Vol. 144 WASHINGTON, SATURDAY, OCTOBER 10, 1998 No. 142 Senate (Legislative day of Friday, October 2, 1998)

The Senate met at 12 noon, on the ex- Dear God, help us to put into action distinguished for diligence. Make this a piration of the recess, and was called to what we believe. We believe in You as ‘‘do it now’’ quality of day in which we order by the President pro tempore sovereign of this Nation. Strengthen live life to the fullest. (Mr. THURMOND). our wills to seek to do Your will. Our motto is, ‘‘In God we trust.’’ Help us to We affirm Your presence, we accept Your love, we rejoice in Your goodness, PRAYER trust You in the specific decisions that must be made. we receive Your guidance, and we The Chaplain, Dr. Lloyd John We believe You have called us here to praise Your holy name. Amen. Ogilvie, offered the following prayer: serve. Help us to be servant leaders,

N O T I C E If the 105th Congress adjourns sine die on or before October 12, 1998, a final issue of the Congressional Record for the 105th Congress will be published on October 28, 1998, in order to permit Members to revise and extend their remarks. All material for insertion must be signed by the Member and delivered to the respective offices of the Official Reporters of Debates (Room HT–60 or ST–41 of the Capitol), Monday through Friday, between the hours of 10:00 a.m. and 3:00 p.m. through October 27. The final issue will be dated October 28, 1998, and will be delivered on Thursday, October 29. If the 105th Congress does not adjourn until a later date in 1998, the final issue will be printed at a date to be announced. None of the material printed in the final issue of the Congressional Record may contain subject matter, or relate to any event that occurred after the sine die date. Senators’ statements should also be submitted electronically, either on a disk to accompany the signed statement, or by e-mail to the Official Reporters of Debates at ‘‘Records@Reporters’’. Members of the House of Representatives’ statements may also be submitted electronically on a disk to accompany the signed statement and delivered to the Official Reporter’s office in room HT–60. Members of Congress desiring to purchase reprints of material submitted for inclusion in the Congressional Record may do so by contacting the Congressional Printing Management Division, at the Government Printing Office, on 512–0224, between the hours of 8:00 a.m. and 4:00 p.m. daily. By order of the Joint Committee on Printing. JOHN W. WARNER, Chairman.

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VerDate Mar 15 2010 00:42 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00001 Fmt 4624 Sfmt 8633 E:\1998SENATE\S10OC8.REC S10OC8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S12272 CONGRESSIONAL RECORD — SENATE October 10, 1998 RECOGNITION OF THE MAJORITY motions to reconsider be laid upon the The following named officer for appoint- LEADER table; that the President be imme- ment in the United States Army to the grade indicated while assigned to a position of im- The PRESIDING OFFICER (Mr. diately notified of the Senate’s action; and that the Senate then return to leg- portance and responsibility under title 10, HAGEL). The Senate majority leader is U.S.C., section 601: recognized. islative session. The PRESIDING OFFICER. Without To be lieutenant general f objection, it is so ordered. Maj. Gen. Michael L. Dodson, 0000 SCHEDULE The nominations considered and con- The following named officer for appoint- Mr. LOTT. Mr. President, this morn- firmed, en bloc, are as follows: ment in the United States Army to the grade IN THE AIR FORCE indicated while assigned to a position of im- ing, the Senate will be in a period for portance and responsibility under title 10, The following Air National Guard of the morning business until 12:30 p.m. Fol- U.S.C., section 601: United States officers for appointment in the lowing morning business, the Senate To be lieutenant general can be expected to consider any legisla- Reserve of the Air Force, to the grades indicated under title 10, U.S.C., section 12203: Maj. Gen. Randall L. Rigby, Jr., 0000 tive or Executive Calendar items To be brigadier general cleared for action, although I don’t ex- The following named officers for appoint- Col. James C. Burdick, 0000 ment in the Reserves of the Army to the pect any items to be cleared today. grades indicated under title 10, U.S.C., sec- Votes are not anticipated during Sat- The following Air National Guard of the United States officer for appointment in the tion 12203: urday’s session of the Senate, and it is Reserve of the Air Force, to the grade indi- To be major general expected that the Senate will not be in cated under title 10, U.S.C., section 12203: Brig. Gen. Jerald N. Albrecht, 0000 on Sunday, but we will be in Monday To be major general Brig. Gen. Wesley A. Beal, 0000 afternoon at a time we will discuss Brig. Gen. Walter R. Ernst, II, 0000 Brig. Gen. William N. Kiefer, 0000 with the Democratic leadership. Brig. Gen. Bruce W. MacLane, 0000 Brig. Gen. William B. Raines, Jr., 0000 During Friday’s session, the Senate Brig. Gen. Paul A. Pochmara, 0000 Brig. Gen. John L. Scott, 0000 passed a continuing resolution allow- Brig. Gen. Mason C. Whitney, 0000 Brig. Gen. Richard O. Wightman, Jr., 0000 ing Government to operate until mid- To be brigadier general To be brigadier general night Monday. So it will be anticipated Col. John H. Bubar, 0000 Col. Anthony D. DiCorleto, 0000 that by Monday afternoon, we will Col. Verna D. Fairchild, 0000 Col. Gerald D. Griffin, 0000 have agreement on an omnibus appro- Col. Robert I. Gruber, 0000 Col. Timothy M. Haake, 0000 priations bill or we need to consider Col. Michael J. Haugen, 0000 Col. Joseph C. Joyce, 0000 another short-term continuing resolu- Col. Walter L. Hodgen, 0000 Col. Carlos D. Pair, 0000 tion. Col. Larry V. Lunt, 0000 Col. Paul D. Patrick, 0000 Negotiations are ongoing at this time Col. William J. Lutz, 0000 Col. George W. Petty, Jr., 0000 Col. Stanley L. Pruett, 0000 Col. George W.S. Read, 0000 with regard to a number of issues, in- Col. William K. Richardson, 0000 Col. John W. Weiss, 0000 cluding the tax extender issue, a num- Col. Ravindraa F. Shah, 0000 IN THE NAVY ber of authorizations and appropria- Col. Harry A. Sieben, Jr., 0000 The following named officer for appoint- tions issues, all of which could end up Col. Edward N. Stevens, 0000 ment in the United States Naval Reserve to Col. Merle S. Thomas, 0000 in the omnibus appropriations bill. Of the grade indicated under title 10, U.S.C., Col. Steven W. Thu, 0000 course, there is a possibility on Mon- section 12203: Col. Frank E. Tobel, 0000 day, or at some point, some of the bills To be rear admiral (lower half) that are being discussed in connection IN THE ARMY Capt. Marianne B. Drew, 0000 with the omnibus appropriations bill The following named officer for appoint- might move separately. One example is ment in the United States Army to the grade The following named officer for appointment in the United States Navy to the grade the Treasury-Postal Service conference indicated under title 10, U.S.C., section 624: To be brigadier general indicated while assigned to a position of im- report. If we can get an agreement in portance and responsibility under title 10, Col. Harry A. Curry, 0000 the omnibus bill on some of the issues U.S.C., section 601: involved in that bill, that became con- The following named officer for appointment in the United States Army to the grade To be vice admiral troversial, if we get that worked out, Rear Adm. Scott A. Fry, 0000 we can move the bill freestanding, but indicated while assigned to a position of importance and responsibility under title 10, The following named officer for appoint- all of that is in the process of being dis- U.S.C., section 601: ment in the United States Navy to the grade cussed right now. To be lieutenant general indicated while assigned to a position of im- We will update our colleagues as Maj. Gen. Michael A. Canavan, 0000 portance and responsibility under title 10, progress is being made. I think that U.S.C., section 601: The following named officer for appoint- progress is occurring. A lot of negotia- ment in the Reserve of the Army to the To be vice admiral tions are going on this morning and grade indicated under title 10, U.S.C., section Vice Adm. Patricia A. Tracey, 0000 will continue throughout the after- 12203: NOMINATIONS PLACED ON THE SECRETARY’S noon. We have had meetings between To be brigadier general DESK the congressional leadership and the Col. John M. Schuster, 0000 IN THE ARMY, MARINE CORPS, NAVY White House this morning. We expect The following named officer for appoint- Army nominations beginning Michael C. to meet again at 5 o’clock this after- ment in the United States Army to the grade Aaron, and ending Richard G *Zoller, which noon to get an assessment of where we indicated while serving as the Director, Na- nominations were received by the Senate and are. We are getting Senators and House tional Imagery and Mapping Agency des- appeared in the Congressional Record of Sep- ignated as a position of importance and re- Members, Democrats and Republicans, tember 30, 1998. sponsibility under title 10, U.S.C., section 441 involved in all those negotiations. Army nominations beginning Matthew L. and 601: f Kambic, and ending James G. Pierce, which To be lieutenant general nominations were received by the Senate and EXECUTIVE SESSION Maj. Gen. James C. King, 0000 appeared in the Congressional Record of Sep- The following named officer for appoint- tember 30, 1998. ment in the United States Army to the grade Marine Corps nomination of Jeffrey M. EXECUTIVE CALENDAR indicated while assigned to a position of im- Dunn, which was received by the Senate and Mr. LOTT. Mr. President, I ask unan- portance and responsibility under title 10, appeared in the Congressional Record of Sep- imous consent that the Senate proceed U.S.C., section 601: tember 29, 1998. to executive session to consider the fol- To be lieutenant general Navy nomination of Michael C. Gard, which was received by the Senate and ap- lowing nominations on the Executive Maj. Gen. Edwin P. Smith, 0000 peared in the Congressional Record of Sep- Calendar: Nos. 872 through 885 and all The following named officer for appoint- tember 11, 1998. nominations on the Secretary’s desk in ment in the United States Army to the grade Navy nomination of Thomas E. Katana, the Army, Marine Corps and Navy. indicated under title 10, U.S.C., section 624: which was received by the Senate and ap- I further ask unanimous consent that To be major general peared in the Congressional Record of Sep- the nominations be confirmed; that the Brig. Gen. Anthony R. Jones, 0000 tember 16, 1998.

VerDate Mar 15 2010 00:42 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00002 Fmt 4624 Sfmt 0634 E:\1998SENATE\S10OC8.REC S10OC8 mmaher on DSKCGSP4G1 with SOCIALSECURITY October 10, 1998 CONGRESSIONAL RECORD — SENATE S12273 LEGISLATIVE SESSION word, and I find it very hard to work Mr. THURMOND addressed the Chair. The PRESIDING OFFICER. Under with people who I don’t have that same The PRESIDING OFFICER. The Sen- the previous order, the Senate will now feeling about. ator from South Carolina. return to legislative session. When it comes to education, I will Mr. THURMOND. Mr. President, I stand aside to nobody, especially a want to commend the able majority f bunch of people who went to private leader for his remarks on just what he ORDERS FOR MONDAY, OCTOBER schools and then holler and scream said. Are the local people going to con- 12, 1998 about what ought to happen in public trol education or the people in Wash- schools. I went to public schools from Mr. LOTT. Mr. President, I ask unan- ington going to control it? I am in the first grade right through college. I imous consent that when the Senate thorough, thorough agreement with went to Duck Hill Elementary and Gre- completes its business today, it stand the able majority leader in what he has nada Elementary and Pascagoula Jun- in recess until 2 p.m. on Monday, Octo- had to say. ior High School. My wife went to pub- ber 12. I further ask unanimous consent f lic schools. My children went to public that the time for the two leaders be re- schools. ORDER FOR RECESS served. I believe and care about education Mr. LOTT. Mr. President, if there is The PRESIDING OFFICER. Without and public schools. I worked for the no further business to come before the objection, it is so ordered. University of Mississippi. My mother Senate, I ask the Senate stand in re- Mr. LOTT. Mr. President, I further was a former schoolteacher. She taught cess under the previous order. ask unanimous consent that there then school for 19 years. I withhold that for one second. be a period for the transaction of morn- For the President to get up down Mr. CHAFEE addressed the Chair. ing business until 3 p.m.—that will be there and demagog this issue about The PRESIDING OFFICER. The Sen- on Monday—with Senators permitted how he is not getting his principles in ator from Rhode Island. to speak for up to 5 minutes each. education is very hard for me to ac- (The remarks of Mr. CHAFEE per- The PRESIDING OFFICER. Without cept, Mr. President. What he wants is a taining to the introduction of S. 2617 objection, it is so ordered. Federal education program. He wants are located in today’s RECORD under f it dictated from Washington. He wants ‘‘Statements on Introduced Bills and PROGRAM it run by Washington bureaucrats, and Joint Resolutions.’’) he wants it his way. Mr. LOTT. Mr. President, if there is Mr. LOTT. Mr. President, we will I don’t have faith in Washington bu- no further business to come before the come in at 2 p.m., unless there is some reaucrats. When the money comes to Senate, I ask the Senate stand in re- need to change it on Monday. We will Washington and it trickles down cess under the previous order. be in a period for morning business through the Atlanta bureaucracy and The PRESIDING OFFICER. The until 3 p.m., and the Senate will then trickles down to the Jackson bureauc- question is on the motion. proceed to any legislative or Executive racy, by the time it gets to the teach- All those in favor—— Calendar items that may be cleared for ers and the kids, half of it is gone. And Mr. DORGAN. I object. action, and particularly when we do they are told, you must spend it this The PRESIDING OFFICER. This is get to the final day, it is my hope and way or that way, when it may not be not a unanimous consent. my expectation that some conference the way it is needed. The question is on the motion. reports or some bills that may be avail- I have faith in local school adminis- Mr. DORGAN. I suggest the absence able can be cleared for action. I know trators, local teachers, parents, and, of a quorum. there is a possibility of that being yes, the children, to make the deci- The PRESIDING OFFICER. The available, and also nominations still sions about what is needed for reading, clerk will call the roll. continue to be a possibility, although what is needed in remedial math, what The legislative clerk proceeded to all of that depends on how the negotia- is needed to fight the drug problem. call the roll. tions go. We can’t be tied up trying to And so that is the basic difference for Mr. FRIST. Mr. President, I ask work through nominations and con- the American people. I ask you, who do unanimous consent that the order for ference reports while also being in- you trust on education? The local offi- the quorum call be rescinded. volved in negotiations on the omnibus cials, the local school officials, the par- The PRESIDING OFFICER. Without bill. Senators will be advised of the ents, or Washington bureaucrats? That objection, it is so ordered. voting situation as long as possible, is the choice. Mr. FRIST. Mr. President, I rise to hopefully 24 hours in advance of any re- President Clinton and his bureau- speak in morning business. corded vote. crats, the liberals in Washington, they The PRESIDING OFFICER. If the f want to run education and manipulate Senator from Tennessee would suspend, education from Washington, DC. The there is a motion to recess pending. EDUCATION Republicans say we should return the Mr. LOTT. Mr. President, I ask unan- Mr. LOTT. Mr. President, let me just money to the local level. If the schools imous consent to withdraw the motion say briefly, Mr. President, on the edu- want to use it for reading, fine. If they to recess. cation issue, it is very difficult to deal want to use it for extra teachers, great. The PRESIDING OFFICER. Without with these negotiations fairly and hon- If they want to use it for more school objection, it is so ordered. estly and productively when you have construction, that is their choice. If The Senator from Tennessee. the President and the Democratic lead- they want to use it for a drug-free f ership coming out and bashing nego- school program, great; do that. tiators on issues like education. It also That is the difference. Who do you REGARDING THE makes it difficult, when you have that trust? Local officials or national offi- MEDICARE+CHOICE PROGRAM happen, to be able to work with people cials? Who do you trust on education? Mr. FRIST. Mr. President, the with whom you disagree philosophi- The son of a schoolteacher and people Medicare+Choice program was created cally, although you try to work in good who went to public education, or pam- as part of the Balanced Budget Act of faith, but also it begins to diminish re- pered people who went to private 1997 to provide Medicare beneficiaries spect and trust. schools and then stand on their mounts with high quality, cost effective op- That is one of the biggest problems and look down their noses and tell us tions, in addition to the continuing op- we have right now. It is so difficult to what ought to happen in public edu- tion of traditional fee-for-service Medi- maintain a sufficient level of trust to cation? care. When fully implemented, be able to get your work done. I think I have about had it on this issue, and Medicare+Choice will provide seniors most people who know me—Senators I am sending a warning to the Presi- with one stop shopping for health care; on both sides of the aisle—know that is dent of the United States: I am not including hospital and physician cov- very important to me. I strive to be going to tolerate a whole lot more erage, prescription drugs, and even pre- trustworthy myself and to keep my demagoguery on this subject. ventive benefits, at a savings.

VerDate Mar 15 2010 00:42 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00003 Fmt 4624 Sfmt 0634 E:\1998SENATE\S10OC8.REC S10OC8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S12274 CONGRESSIONAL RECORD — SENATE October 10, 1998 This change in Medicare is monu- out the Federal government and health they agree to submit large amounts of mental. It is dramatic. And it is essen- care industry. There are many pro- data, pay for extensive education cam- tial to preserving and strengthening found questions provoked by this an- paigns for their enrollees, participate Medicare for our seniors and individ- nouncement. Why are insurance com- in government sponsored health fairs, uals with disabilities. This change panies, hospital systems, and physi- and keep up with all the regulatory breeds challenges—some that can be cians who once applauded the rules and regulations. Mayo Clinic esti- predicted but many which cannot. The Medicare+Choice program, now seem- mates that the rules governing their potential for these challenges to hurt ingly hesitant to participate? Are the participation in Medicare are spelled and harm is very real. The senior, so pullouts the beginning of a trend which out in 586 pages of law and accom- relieved to finally find a health plan will ultimately undermine the panied by 111,088 pages of regulation, that covers the cost of his prescription Medicare+Choice program, which was drugs because of Medicare+Choice, specifically designed to restore Medi- guidance, and supporting documents. hears this week that he might not have care’s fiscal health and give seniors We in government should listen to this that plan—or that coverage next year. more options? To what extent are in- call for simplification, streamlining Who to call? What to do? We as a gov- surance companies and health plans the regulatory burden, demanding ac- ernment must respond. This Adminis- over-reacting to natural ‘‘growing countability without trying to micro- tration must move decisively to re- pains’’ associated with the implemen- manage. spond and to mend flaws in the system. tation of new policies? What actions, if The Health Care Financing Adminis- We on the National Bipartisan Com- any, should HCFA and Congress take in tration (HCFA), the government agen- mission on the Future of Medicare are response to what President Clinton cy in charge of Medicare, is surpris- working hard to address ways to characterized as HMO’s breaking ingly optimistic and upbeat about the strengthen the security provided by ‘‘their commitment to Medicare bene- Medicare. And the red flags raised by long term feasibility of ficiaries?’’ The President now vows to Medicare+Choice. They urge skeptics the announcements this week under- initiate ‘‘abandonment’’ legislation to to remember that the program is in its score the importance of this work. No punish those plans leaving and prevent infancy. They point to data on Medi- longer can we be satisfied with an out- a further exodus, but will he only suc- care HMO participation, which after a dated, 30 year old bureaucracy as the ceed in discouraging new Medicare par- best way to care for our nation’s sen- ticipating contracts? How can we avoid rocky start in the mid 1980s, now iors. A typical 65 year old senior who a short-sighted political response and boasts one in six Medicare bene- retires moves from a private sector create realistic incentives to provide ficiaries. They anticipate increased en- health care system—with a variety of seamless continuous coverage across rollment as more Medicare recipients quality, low cost options, including geographic boundaries? How can we have a greater understanding of their prescription drug coverage, and out-of- more adequately risk adjust payments options and of how the opportunity to pocket protections—to a more limited, to encourage health plans to accept, have a plan that meets specific needs antiquated government program, with- rather than avoid the most seriously meaning better care with greater secu- out any limits on how much you are re- ill? How can we incentivize health rity, not less. To date, full scale edu- quired to pay and no drug coverage. By plans, who have little experience in cational efforts have only occurred in updating Medicare, we not only ensure caring for the chronically ill, to de- five states. The beneficiary education its continued existence past the cur- velop systems that appropriately ad- program, which includes a booklet and rent bankruptcy date 10 years from dress the very unique and specific hotline campaign, is slated for nation- now, but we provide continuity of care, needs of the older population? wide expansion by August, 1999. Most limited out of pocket expenses, and a The insurance industry is responding seniors are still unaware of their op- mechanism for improving quality of defensively to charges that they have tions in their regions. Many associate care that you the patient receive. ‘‘abandoned beneficiaries.’’ They con- expanded choice with insecurity. Only As of October 8, forty-three of the tend that in many regions Medicare’s education will change this. And that is current health care plans participating payments to HMOs fall far short of a government responsibility. in Medicare announced their intention even covering the cost of care for bene- not to renew their Medicare contracts ficiaries. Furthermore, they argue at HCFA also takes issue with the in 1999. Another 52 plans are reducing the very time a fledgling market struc- HMOs’ assertion that it is underpaying service areas. The net result is that ture most needs flexibility, the Admin- managed care plans. They cite evidence 414,292 beneficiaries in 371 counties face istration has instead placed such rigid obtained by the Physician Payment the daunting task of securing alter- bureaucratic burdens that their hands Review Commission in 1997 that Medi- native coverage provided by Medicare are tied and they have no choice but to care has been paying $2 billion a year by January 1, 1999. Although this rep- opt out of certain regions. Some be- too much to managed care plans. This resents a small number of total bene- lieve the recent pullouts may simply observation led to HCFA’s September ficiaries, about one percent, those who reflect an effort on the part of insur- decision to reject the insurance compa- have relied on their health plan to ance companies to bide time in the nies’ proposal to resubmit their cost bridge the traditional gap between hopes that Congress will eventually projections, to obtain additional reim- Medicare and Medigap now must either ease requirements and make further bursement. HCFA did not intend to find another HMO (which means progress with plan payments. raise reimbursement levels, and feared switching doctors in many cases), or Seeing what has happened to their that such an opportunity would allow move back to traditional fee-for-serv- HMO competitors, provider-sponsored plans to hike beneficiary premiums ice Medicare which frequently means plans, or PSO’s, have also been wary of and decrease benefits. In addition, more personal expense. Should these Medicare+Choice contracts. Their un- HCFA points to reluctance on the part individuals choose the traditional easiness over the Administration’s of HMOs to pay their fair share of mar- Medicare option, they will probably treatment of new participants, how- keting and education costs. But, de- also scramble to find a supplementary ever, is secondary to their concern that spite HCFA’s point that, in the aggre- Medigap policy, with likely higher pre- private sector plans may boycott their gate, they overpay HMOs, the agency miums than their original Medigap pol- facilities, viewing them as competing governing Medicare may not be ade- icy and perhaps fewer benefits. 10% of insurers, rather than providers. PSOs quately considering the fact that with- the disadvantaged beneficiaries live in face an uphill battle with state regu- areas where no alternative Medicare latory agencies. They fear that other in that average there may well be plans HMO plans are offered. However, tradi- insurers will use them as a ‘‘dumping with a disproportionate number of tional Medicare remains an option for ground’’ for the expensive, chronically older and sicker beneficiaries who are every beneficiary, and by law, seniors ill cases many insurers are tempted to indeed underpaid. We must be com- may return to that program. avoid. mitted to fair and just payment to In addition to the serious dilemmas Both HMOs and PSOs complain loud- these plans for the service we are ask- this disruption has caused for those ly about the high administrative costs ing them to deliver. Because of the seniors, the extent to which HMOs inherent in new Medicare contracts. By tendency, at the federal level, to look pulled out sent shock waves through- participating with the government, at

VerDate Mar 15 2010 00:42 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00004 Fmt 4624 Sfmt 0634 E:\1998SENATE\S10OC8.REC S10OC8 mmaher on DSKCGSP4G1 with SOCIALSECURITY October 10, 1998 CONGRESSIONAL RECORD — SENATE S12275 averages, rather than individuals, and ficiaries, we can assure that the in dealing with education. One is to im- the reality of where people live, we Medicare+Choice program will reach prove and invest in the infrastructure must commit to address reasonable its full potential of better and more se- of our schools. I have spoken on the compensation in greater detail. The re- cure care for seniors and individuals floor a good number of times about the ality is: the reimbursement system for with disabilities. condition of some of the schools in this health care plans is surprisingly dis- Also embedded within my remarks is country. I won’t go into that at great associated with the actual costs of de- a challenge to the Congress. Although length, but let me just describe a cou- livering care. We must invest today in we just passed, last year, the Balanced ple of them. designing and implementing a real- Budget Act that stretched the solvency At the Cannon Ball Elementary istic, scientifically based reimburse- of Medicare until 2008, it is clear that School in Cannon Ball, ND, most of the ment structure. the Congress must promptly revisit children going to that school are In- A key component of the Balanced Medicare once the National Bipartisan dian children. There are about 150 stu- Budget Act was the move toward eq- Commission on the Future of Medicare dents who must share only two bath- uity in payment across the country. files its report by March 1, 1999. The rooms and one water fountain. Part of Many HMOs were counting on receiv- dynamics of American health care, and the school has been condemned. Some ing additional funds, following review the rapid changes in care for the na- of those students spend time in a room by HCFA on the vast geographic dis- tion’s seniors, will not allow for main- down in the older part of the school parities in payment. However, HCFA tenance of the status quo for the next that can only be used during certain decided to postpone this adjustment decade. It is my hope that the current days of the week because the stench of until 2000, based on inadequate funds focus on Medicare+Choice serves as a leaking sewer gas frequently fills that following an across-the-board 2% up- catalyst for renewed discussion on the room with noxious fumes that requires date. Thus, the so-called ‘‘blended future of Medicare once we have the it to be evacuated. rates’’ will not be applied until 2000. Medicare Commission’s recommenda- They can’t connect that school to the HCFA plans to incorporate risk adjust- tions in hand. We will be remiss in our Internet because the wiring in that 90- ment in 2000 to reduce selective enroll- responsibility if we do not again next year-old facility will not support tech- ment by plans and reduce total over- year continue our efforts to insure the nology. The young children who go payments to managed care plans. solvency and improve the quality of through those schoolroom doors are HCFA has also recognized the adjust- the Medicare program—for our seniors, not getting the best of what this coun- ments necessary in implementing new our parents and grandparents, today— try has to offer. And that school dis- plans, and has thus allowed leeway and for all Americans—including our trict simply does not have the funds on with quality improvement plans. There children—tomorrow. its own to repair that school or build a are some who feel that recent develop- Mr. LOTT. Mr. President, I suggest new one. ments could have been avoided if HCFA the absence of a quorum. I challenge anyone in this Congress acted more rapidly and more respon- The PRESIDING OFFICER. The to go into that school building and say sibly in carrying out Congress’ man- clerk will call the roll. no to young Rosie in third grade who date. Congressman Bilirakis, chairman The legislative clerk proceeded to asked me, ‘‘Mr. Senator, can you buy of the House Commerce Subcommittee call the roll. us a new school?’’ I would challenge on Health and the Environment, stated Mr. DORGAN. Mr. President, I ask anyone to go into that school, and de- that federal health officials were unanimous consent that the order for cide whether that is the kind of school ‘‘guided by a rigid bureaucratic men- the quorum call be rescinded. you want your children to go to. Can tality which led to ossification rather Mr. GRAMS. I object. you say that your children are entering than modernization of the Medicare The PRESIDING OFFICER. Objec- a classroom that you are proud of? I program.’’ tion is heard. don’t think so. The decision of so many managed Mr. DORGAN. Mr. President, I ask That school district doesn’t have the care plans to withdraw and downsize unanimous consent that the order for capacity to repair that school on its their Medicare contracts raises a red the quorum call be rescinded. own. It has a very small tax base that flag. We must first resolve the imme- The PRESIDING OFFICER. Is there will not support a bonding initiative diate coverage disruptions facing many objection? for building a new school. There are of our elderly, and then we—this Con- Without objection, it is so ordered. Mr. DORGAN. Mr. President, I ask schools like that—the Cannon Ball Ele- gress, this President, HCFA, the insur- unanimous consent to speak for 15 min- mentary School, or the Ojibwa Indian ance industry and seniors—must pledge utes as in morning business. School on the Turtle Mountain Res- to work together to make this program The PRESIDING OFFICER. Without ervation—all over this country, and we a success. Not only in the short term, objection, it is so ordered. ought to do something about it. We can but with an eye to the future. To sur- do something about it we enacted a vive, Medicare must change. Medicare f number of proposals on school con- needs the flexibility to respond to the EDUCATION AND THE FEDERAL struction. That ought to be a priority changing health care environment, not GOVERNMENT for this Senate. So, too, ought this only for our generation, but for our Mr. DORGAN. Mr. President, I would Senate have as its priority trying to children and grandchildren. Now is the like to respond briefly to the com- help State and local governments and time for commitment and compassion, ments made by the majority leader school districts reduce class size. It rather than overreaction or pre- earlier this morning on the subject of makes a difference. maturely concluding failure of changes education. I have two children in public schools, made to date. Knee jerk reactions, I have great respect for our Senate in grade school. One goes to school in a rather than thoughtfully moving to majority leader. He and I agree on trailer, a portable classroom. The other solve the problems, will only wreak some things and disagree on others, is in a class with 28 or 29 students. And further havoc on this evolving pro- but I always have great respect for his it has almost always been that way. gram. A commitment to education, and opinion. But on the issue of schools and Would it be better if they were in a more rational, responsive administra- what kind of, if any, involvement the schools with class sizes of 15, 16 or 18 tive and oversight structure must be Federal Government shall have on this students? Of course, it would. Does a pursued to meet future needs in Medi- issue, I think we have a very substan- teacher have more time to devote to care and the care of our seniors. On a tial disagreement. each student with smaller classrooms? positive note, there are 48 pending ap- State and local governments, espe- Of course. Of course. Can we do some- plications of private plans wishing to cially local school boards, will always thing about that? Only if this U.S. Sen- enter the Medicare Market; 25 plans run our school system, and that is how ate determines that education is a pri- have requested to expand their current it should be. I don’t suggest, and would ority. Only if we decide to do some- service areas. By working with HCFA, never suggest, that we change that. thing about it. I am not suggesting the insurance industry, hospitals, However, there are some things that that we decide that we ought to run health care providers, and bene- we can and should aspire to as a nation the local school systems; that is not

VerDate Mar 15 2010 00:42 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00005 Fmt 4624 Sfmt 0634 E:\1998SENATE\S10OC8.REC S10OC8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S12276 CONGRESSIONAL RECORD — SENATE October 10, 1998 the case at all. But we should decide and to be independent where they are care beneficiaries who need home that we as a nation have the capability most comfortable, rather than having health care will not get it. and the will to modernize and help con- to go into more costly hospitals or I have cosponsored a bill introduced struct the kind of schools that all of us nursing homes. by Senator COLLINS and others, the would be proud to send our children to. But at this time, we have in our Medicare Home Health Equity Act, f country a very serious financing prob- that would make the home health pay- lem with home health care that is jeop- ment system more fair to the histori- NEED FOR URGENT ACTION ON ardizing this Medicare benefit. Before cally efficient providers, and reduce HOME HEALTH CARE we end this session of the Congress, we the incentive for dropping sick pa- Mr. DORGAN. Mr. President, as we need to do something to address it. I tients. reach the conclusion of this 105th Con- would like to describe just for a mo- Let me emphasize again that the pur- gress, I note that there are a good ment what that problem is. pose is to make the home health care many issues yet to be discussed and re- Congress, last year, passed the Bal- system more fair to the historically ef- solved. I wanted to come to the floor to anced Budget Act, something I sup- ficient home health care providers. talk about one issue that is very im- ported. This legislation made a lot of There have been dozens of bills intro- portant, the issue of home health care. changes to Medicare and to the home duced to solve the problem, and to date It is vitally important that Congress health care program. Some of those more than two-thirds of the Senate take action on this issue before ad- changes were warranted because the from both political parties have co- journing. home health care program had mush- sponsored one or more of these bills, or I am very familiar with home health roomed, and we had to constrain the have gone on record in support of ef- care. This is not theory to me. It is not rate of growth of home health care forts to address the problem. an issue that I just read about and only spending, which had more than tripled With nearly 70 Senators cosponsoring understand from books and manuals in the early 1990s. or supporting legislation of this type, I and rules and regulations. But Congress went too far and, in my think we ought to, before Monday One snowing Wednesday evening in judgment, made a mistake in the way evening or whenever we adjourn, fix January a number of years ago, my it implemented what is called the in- this home health care payment system. mother was killed in a tragic man- terim payment system, which is now I know my colleagues on the Senate slaughter incident in North Dakota. having a devastating impact on home Finance Committee have been working She had gone to the hospital to visit a health care agencies and Medicare to develop legislation that will at least friend and on her drive home, four beneficiaries. The current interim pay- deal with the most pressing problems blocks from home, a drunk driver going ment system penalizes the very home in this interim payment system and to 80 to 100 miles an hour and being health care agencies that have oper- tide the home health agencies over chased by the police hit her and killed ated most efficiently in the past, and it until permanent changes can be imple- her instantly. locks in the payment inequities that mented. During this same period, my father currently exist. The result is that 1,100 One of the challenges they face is to was having significant health prob- home health agencies nationwide have do this in a fiscally responsible way lems, and as so often is the case, my closed their doors. that will not harm other areas of Medi- mother was providing the bulk of his Unfortunately, the very Medicare care. care at home in Bismarck, ND. I will beneficiaries who are being harmed the It is also important, I think, not to perhaps never forget the moment of most by this interim payment system be asking older Americans, especially having to wake my father up and tell that is so unfair are those Americans those who have reached the age of de- him that my mother had lost her life. who need home health care the most. clining income, to shoulder the cost for In addition to the shock of losing our That is because, under this interim this change through a new copayment mother, my family understood that we payment system, more than 80 percent on home health services. were also going to have to struggle to of home health agencies will be paid a I know that the Congress can meet make sure my father got the care he capped amount called the ‘‘per-bene- this challenge if it decides this is a pri- needed. In the days ahead, we began ficiary limit.’’ ority between now and perhaps Monday talking about what we could do to help In my home State, the average per- evening. Congress must, in my judg- my father in his fragile state of health. beneficiary limit is $2,247, not nearly ment, begin to select the right prior- One of the things we discovered was enough to cover the cost of care needed ities. that there is in this country a system by the sickest and the most frail of We seem to be at loggerheads here in of home health care. Through this sys- Medicare beneficiaries. negotiations between the House and tem, skilled health care providers will The home health care folks have a the Senate, the Congress and the Presi- come into the home on a routine basis Hobson’s choice. They can close their dent, Democrats and Republicans. Be- to help to meet the health care needs doors, or they can start a kind of cher- tween now and when we complete the of those who desperately need it. ry-picking with respect to those who final omnibus spending bill, we must My family used the home health care need home health care service. In other make choices about what our priorities system and the services of wonderful words, they can choose to serve only are, what is more important, and what nurses and others who worked in home the less ill or less sick Medicare bene- is less important. health to care for my father. It allowed ficiaries whom they know will not ex- I ask that we decide that dealing us to keep my father out of a nursing ceed the per-beneficiary cap. with the home health care payment home and in the home that he had I am told cherry-picking is not yet system is more important. That it be lived in for so many years with my occurring in my home State. But I am one of the priorities. mother. afraid it is only a matter of time before This is something we can do. It is not Was that important? Yes. It was very home health agencies have no choice something that is terribly difficult. It important and made life much, much and begin to do that. is simply a choice that we will make— better for him. And it occurred because I don’t believe it was Congress’ inten- Democrats, Republicans, liberals, con- we have a home health care system tion to cause efficient home health servatives, all of us deciding together that could provide the routine health agencies to close or to stop caring for how we spend limited resources on care needed to allow my father to con- sicker patients, and I think it is imper- nearly unlimited wants in this coun- tinue to live at home. My father is ative that this Congress solve this try. gone now, but I still remember how im- problem. Mr. President, I know others wish to portant that home health care was and In the negotiations on the budget, I speak, and I would say to the majority still is to millions of families all across hope very much that will happen. If we leader that this will be an interesting this country. wait until next year, it is going to be couple of days. He, I am sure, will have Home health care is a wonderful too late. Hundreds of agencies will a significant challenge working with Medicare benefit because it allows probably not be there and a good many all of us to try to figure out what the older Americans to remain at home of the sickest and the most frail health priorities will be in the closing hours of

VerDate Mar 15 2010 00:42 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00006 Fmt 4624 Sfmt 0634 E:\1998SENATE\S10OC8.REC S10OC8 mmaher on DSKCGSP4G1 with SOCIALSECURITY October 10, 1998 CONGRESSIONAL RECORD — SENATE S12277 this session. It is my fervent hope that The PRESIDING OFFICER. Is that very modest recommendation. We have one of those priorities will be to ad- the Senator’s request? not embraced that recommendation at dress the interim payment system in Mr. LOTT. No. the present time. The urging of the home health care. Mr. KENNEDY. And a happy birth- President of the United States is that Mr. President, I yield the floor. day to you. before we move out from this Congress, The PRESIDING OFFICER. The ma- Mr. LOTT. I amend that request to we ought to be about the business of jority leader is recognized. include 15 minutes for Senator KEN- addressing that particular education f NEDY on Monday morning, also. need. Education is of prime importance The PRESIDING OFFICER. Without to every family in this country. It is of UNANIMOUS CONSENT objection, it is so ordered. AGREEMENT essential importance to every young Mr. LOTT. I yield the floor. person in this Nation, and it is a mat- Mr. KENNEDY. I thank the majority Mr. LOTT. Mr. President, I ask unan- ter of enormous importance in terms of leader. imous consent that the previous unani- our country being able to compete in a mous consent agreement with respect The PRESIDING OFFICER. The Sen- ator from Massachusetts. global economy. to morning business on Monday, Octo- So the urgency of these proposals— ber 12, be amended so that 30 minutes Mr. KENNEDY. I hope my friend, our majority leader, had a joyous and one is to have a reduced class size and are under the control of Senator Bob the second is to be able to modernize KERREY, 15 minutes under the control happy birthday. Mr. LOTT. Thank you very much. our classrooms—is enormously impor- of Senator FORD, and the remaining 15 Mr. KENNEDY. Maybe it is spilling tant. If we look over the amount of re- minutes under the control of Senator over to today. But we wish to thank sources we devote to education in the LOTT, or my designee. budget of this country, we will find The PRESIDING OFFICER. Without him. f that it is only about 2 percent. It is objection, it is so ordered. only 2 percent of our national budget. f FUNDING EDUCATION This is the 1998 Federal budget, and EXTENSION OF MORNING Mr. KENNEDY. Mr. President, I ap- you can see from this pie chart the al- BUSINESS preciate the opportunity to speak on locations of resources. The area of edu- Mr. LOTT. Mr. President, I ask unan- the Senate floor this afternoon about cation is only 2 percent. If you ask peo- imous consent that morning business matters which I am very hopeful can be ple what percent of a dollar they be- be extended until 3 p.m., with Senators addressed and will be addressed and I lieve goes to education, I think most permitted to speak for up to 10 minutes think should be addressed in the re- Americans would think 10 or 12 per- each for debate only with no motions maining hours before the Congress ac- cent, or 10 or 12 cents should be going in order, and at 3 p.m. the Senate auto- tually recesses. And this is in the area to education. If you ask what they be- matically stand in recess under the of education and what we are going to lieve they would like to be the number, previous order. do finally in trying to meet the respon- it would be even higher. I further ask that during morning sibilities that we have to assure a We are only talking about 2 percent. business the following Senators be rec- smaller class size for the 53 million So the real question is, in a time now when our appropriators and nego- ognized: Senator John KERRY for 15 Americans who will be attending and tiators are meeting to have final reso- minutes, Senator DASCHLE for 30 min- are attending schools across this coun- lution on what will be a $1.7 billion utes, Senator KENNEDY for 20 minutes, try, which means an expansion in budget, will we be able to find the re- Senator ENZI, Senator KEMPTHORNE, terms of the total number of teachers. I am very hopeful that in the ulti- sources to provide for the reduced class Senator GRAMS for 20 minutes, and mate and final budget agreement there size for K through 3—$1 billion for fis- Senator DOMENICI for 20 minutes. The PRESIDING OFFICER. Without will be an agreement on the President’s cal 1999, $7 billion over the next 5 objection, it is so ordered. recommendation of 100,000 teachers years—to see a dramatic reduction in Mr. DORGAN. Mr. President, reserv- over the period of the next 5 years, and the number of students per class in K ing the right to object, and I shall not that we will also embrace the very, through 3, that is what we are trying object, I would like to inquire of the very important and, I think, essential to do, and to modernize our school Senator from Mississippi, is that the school modernization program which buildings all across this country. only morning business leadership effectively would provide about $22 bil- Those are two priorities. I must say I would intend to have on Monday? I lion in interest-free bonds to local strongly agree with the President, with would like to have 15 minutes in morn- communities all over this country in Senator DASCHLE, and with Leader ing business on Monday as well. order to modernize their schools. GEPHARDT who said we should not leave Mr. LOTT. I think we will be able to What we have seen now is a rather this city until we respond in a positive extend that. It was just we had specific dramatic change in the demography way to make sure those requirements requests. Senator Bob KERREY was and the growth in the total number of are fulfilled, because there is nothing here. He needs 30 minutes on intel- children who are going into the school that is more important than meeting ligence. We had thought we would have systems all across this country, and at the needs of the children of this coun- at least an hour just in general, but we the same time you have seen a contin- try. are getting specific requests. I am sure ued deterioration in many of the school Finally, Mr. President, I think this is we will extend it. On Monday, hope- buildings across the country. That is important to do for a number of rea- fully, we will be able to do some busi- certainly true in my State, which has sons. Every day that children go into ness and, hopefully, even do the omni- many of the oldest school buildings in the school systems of this country, bus appropriations bill. But there is no the country, but it is also true in many they go into dilapidated schools, they need to limit it just to that. We will of the other States across this country, go into old schools, they go to class- extend it. and even in a number of the rural com- rooms with windows broken or with Mr. DORGAN. Would the Senator be munities. poor heating or poor air-conditioning willing to add me for 15 minutes on As a matter of fact, the General Ac- in the course of the early fall and the Monday? counting Office did a study in terms of late spring and early summer in many Mr. LOTT. I certainly will. I ask what would be necessary in our coun- other parts of the country, or where unanimous consent that Senator DOR- try in order to make sure that we are the pipes are leaking, or where some GAN have 15 minutes in morning busi- going to have good classrooms for the schools are actually closed in the win- ness as well on Monday, October 12. students, and it was estimated to be tertime because of the failure of the Mr. KENNEDY. Mr. President, would $110 billion. That is what the need is heating system, we are sending a very the Senator be kind enough to make a according to a nonpartisan evaluation powerful message to those children. similar request on my behalf? of what the conditions are in our On the one hand, we as parents are Mr. LOTT. Why don’t I just ask for 15 school buildings across the country. saying that education counts, that we minutes every morning for Senator Therefore, the recommendation the believe it ought to be a priority, that KENNEDY for the remainder of the year. President has made for $122 billion is a we think the future of this Nation is

VerDate Mar 15 2010 00:42 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00007 Fmt 4624 Sfmt 0634 E:\1998SENATE\S10OC8.REC S10OC8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S12278 CONGRESSIONAL RECORD — SENATE October 10, 1998 our children and we ought to be about and will again—to talk about the I ask unanimous consent the names the business of looking out for the in- progress that has been made in aca- of these Minnesota organizations be terests of these children to make sure demic achievement in a number of printed in the RECORD. they are going to have a well-qualified communities when they have seen the There being no objection, the list was teacher in every classroom in this significant reduction in the number of ordered to be printed in the RECORD, as country. That ought to be our hope, students per teacher that has taken follows: that ought to be our challenge, and place in communities and States across Advocates For Family Peace. that is what we are working for. And this country. The evidence is over- African American Family Services. that ought to be an effort made in the whelming that it has an enormously Aitkin County Advocates Against Domes- local community. It ought to be an ef- important positive impact. tic Abuse. fort made at the State level. But we So let’s get about doing what we Alexandra House. know works, and that is to increase the Anishinable Circle of Peace. should not say we are going to abandon Anne Pierce Rogers Home. our national interest by saying we are number of teachers that we need in our Asian Women United of Minnesota. not going to interfere if there are inad- schools. Even with the expansion of the B. Robert Lewis Intervention Project. equate capabilities, or an inability, number of students in our schools, let B. Robert Lewis House Shelter. which is too often the case, to help and us increase the number of teachers, and Battered Women’s Legal Advocacy Project. assist local communities, particularly let us enhance the quality of those Big Stone County Outreach. when so many local communities such teachers to make sure we are going to Bois Forte Battered Women’s Program. have good, qualified teachers in every Breaking Free. as we have seen in the recent times in Brian Coyle Community Center. Chicago and many other commu- classroom. Let’s make sure the number Brown County Victim Services. nities—my own city of Boston—are of students in those classrooms will be Casa de Esperanza. making this extraordinary effort to en- such that the teacher is going to be Cass County Family Safety Network. hance the academic achievement for able to identify and spend some mo- Center for Family Crisis. the children of this country and in ments with each child in that class- Chisago County Victim’s Assistance Pro- those communities. room. That is the hope and desire of gram. We ought to be able to say we will be the teachers who have committed Citizen’s Council Victim Services. Committee Against Domestic Abuse. a partner with you, we are willing to be themselves to excellence, to trying to Community University Health Care Cen- a partner with the local community, enhance that academic achievement ter. we are willing be a partner with the and accomplishment. Let’s be a partner Cornerstone Advocacy Services. State, and we are going to be a partner with the local communities and the Crime Victims Resource Center. in helping to modernize our facilities. States that are embarking on that ef- Division of Indian Work. Otherwise, the promise that we are fort. Domestic Violence Abuse Advocates of going to convince this next generation Let us, as we are going through the Wabasha County. that we are serious about their edu- final days now—let’s not leave town. Domestic Abuse Intervention Project. Domestic Abuse Project. cation is going to be a hollow one. No Let’s not say we will take whatever is Domestic Abuse Project of Goodhue Coun- child will go into a classroom and see served up to us in the budget. Let us ty. that it is in a deteriorated condition say education is important. We can go Eastside Neighborhood Service. and then be exposed to other areas about the business of trying to make a Family Help Center. where everything is bright and shiny difference in the classrooms and in the Family Safety Network. and new because of greater expendi- quality of the people who will be in Family Services. tures and not say, ‘‘What is really im- those classrooms. Let us resolve that Family Violence Intervention Project. Family Violence Network. portant? What do our parents really we will do that before we leave this Family Violence Program. think is important? Where they are town. That is, I think, an important re- Fillmore Family Resources, Inc. spending the money is what is bright sponsibility that we have. We should Fond du Lac Reservation Business Com- and shiny and new.’’ not fail our children. mittee. When we are not expending the re- Mr. President, I yield the floor. Forest Lake Area New Beginnings. sources in the classrooms, we send a The PRESIDING OFFICER (Mr. ROB- Freeborn County Victim’s Crisis Center. very powerful message—it may be a ERTS). The Senator from Minnesota. Friends Against Abuse. subtle message but it is a powerful Gay and Lesbian Community Action Coun- f cil. one—that we are not prepared as a na- DOMESTIC VIOLENCE AWARENESS Gender Violence Institute. tion to do what needs to be done to up- MONTH Grand Portage Reservation ‘‘Wil Dooka grade the classrooms in this country. Wada’’. I hope in the remaining hours of this Mr. GRAMS. Mr. President, I rise Grant County Outreach. process, as our leaders, our appropri- today to recognize the work of domes- Hands of Hope Resource Center. ators and leaders, members of those tic violence shelters and centers in my Hands of Hope. committees, get together to work out home state of Minnesota. As my col- Harriet Tubman Center, Inc. the final budget, as we are starting leagues may know, October is recog- Harriet Tubman Pilot City Outreach Pro- nized as ‘‘National Domestic Violence gram. over for the next year, that the edu- Headwaters Intervention Center, Inc. cation budget is going to have the pri- Awareness Month.’’ This is a time to Health Start. ority that every American family strengthen our resolve to end domestic Health System Minnesota AdvoCare. wants it to have, and that is priority violence and sexual assault. More im- Hennepin County Legal Advocacy Project. No. 1. I hope when we come to that No. portantly, it is also a time to remem- Hill Home. 1 we are going to say, ‘‘The size of our ber those who have suffered and died as Home Free Domestic Assault Intervention classes is of enormous importance and a result of these terrible crimes. Project. consequence in terms of the ability of I am very concerned about the num- Home Free Shelter—Missions, Inc. ber of domestic violence incidents in Houston County Mediation & Victims the teacher to relate to the children.’’ Services. We have just heard an eloquent state- our society. Americans should not have Houston County Women’s Resource. ment to that effect from some wonder- to live in fear of being abused by any- Lakes Crisis Center. ful teachers from the State of South one, let alone a family member. Leech Lake Family Violence Prevention/ Dakota, as well as from Missouri, talk- In my view, community-based domes- Intervention Program. ing about the relationship between the tic violence shelters and centers should LeSeuer/Sibley Violence Project. teacher and the student and how it is be commended for their support for Listening Ear Crisis Center. enhanced to such an extraordinary de- victims of physical, emotional, and Lyon County Violence Intervention sexual abuse. Their efforts to provide Project. gree when we have smaller class sizes. McLeod Alliance for Victims of Domestic It ought to be self-evident and it ought shelter, counseling, and assistance to Violence, Inc. to be intuitive. It is, in fact, true. battered women and children have Methodist Hospital AdvoCare Program. I am not taking the time this morn- helped families and communities es- Midway Family Service and Abuse Center. ing—although I have at other times cape domestic violence. Migrant Health Service.

VerDate Mar 15 2010 00:42 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00008 Fmt 4624 Sfmt 0634 E:\1998SENATE\S10OC8.REC S10OC8 mmaher on DSKCGSP4G1 with SOCIALSECURITY October 10, 1998 CONGRESSIONAL RECORD — SENATE S12279 Mille Lacs Women’s Project. Black, Indian, Hispanic & Asian Women In Mr. President, Minnesotans will have Minneapolis Intervention Project. Action. the opportunity this month to partici- Mujeres Unidas/Los Ninos. BrotherPeace. pate in a variety of National Domestic North Memorial Women’s Center. Minnesota Coalition for Battered Women. North Shore Horizons Women’s Resource Minnesota Indian Women’s Resource Cen- Violence Awareness Month initiatives. Center. ter. Throughout October, citizens will raise Northwoods Coalition for Battered Women. Mr. President, we should also note public awareness through candlelight OtterTail County Crisis Center. that this year marks the fourth anni- vigils, rallies, and marches throughout PEARL: Battered Women’s Resource Cen- versary of the Violence Against Women our communities. ter. Act. Through increased sentences, One of the more creative programs Phyllis Wheatley Community Center. grants to State governments for pre- will be an art exhibit honoring 30 Min- Pillsbury Neighborhood Services. neapolis public high school students Pope County Outreach PRIDE (Women vention programs and other services, Used In Prostitution). and the new national domestic abuse who are finalists in the ‘‘Speak Up’’ do- Project P.E.A.C.E. hotline, the Violence Against Women mestic violence awareness poster con- Ramsey Intervention Project. Act has contributed significantly to- test. Range Women’s Advocates. ward protecting individuals from sex- This initiative, co-sponsored by the Rape and Abuse Crisis Center. ual offenses and domestic abuse. I am Harriet Tubman Center and Intermedia Refuge. proud to have supported this landmark Arts in Minneapolis, will encourage Refuge East. legislation as a member of the House of students to increase public awareness Refuge North. and prevention of family violence. The Region IV Council on Domestic Violence. Representatives during the 103rd Con- Rivers of Hope—Buffalo. gress. competition will award scholarships to Rivers of Hope—Elk River. Since the passage of the Violence twelve individuals who present various Safe Journey. Against Women Act, funding provided domestic violence themes in their art- SAFE, Inc. for these programs has led to the fur- work. St. Cloud Intervention Project. ther development of policies to prevent Next fall, these works will be part of St. Paul Intervention Project. and respond to domestic abuse inci- the Annual Domestic Violence Art ex- Sheller House/Woodland Centers. hibit in the Russell Senate Office Sojourner Project. dents. This includes specialized domes- Sojourner Project intervention. tic violence court advocates who ob- Building sponsored by my colleague, Southern Minnesota Crisis Support Center. tain protection orders, in conjunction Senator Paul WELLSTONE. Southern Valley Alliance for Battered with greater support to enhance the I am certain many Members of Con- Women. ability of prosecutors and law enforce- gress will visit this exhibit to admire Southern Valley Intervention Project. ment to punish those who commit the important contributions of these Southwest Crisis Center. these crimes. young Minnesotans toward raising the Stevens County Outreach. Despite these important achieve- consciousness of our communities Traverse County Outreach. about the issue of domestic abuse. Tuning Point for Victims of Domestic ments, the number of siblings, spouses, Abuse. and children subjected to domestic Domestic violence is not an insur- Unity/Waite House. abuse remains too high. Regrettably, mountable problem facing our society. Victim’s Crisis Center. most victims of domestic violence are We must work together to curb this Violence Intervention Project (CADA). women. problem that crosses over economical, Violence Intervention Project—Ada. According to the Minnesota Coalition cultural, and political boundaries. Violence Intervention Project—Crookston. for Battered Women, 210 Minnesota Through the efforts of community Violence Intervention Project—Hallock. women died from domestic abuse be- groups, families, and law enforcement, Violence Intervention Project—Rouseau. Americans can take meaningful steps Violence Intervention Project—Thief River tween 1988 and 1997. Sadly, this loss of Falls. life underscores the importance of in- toward eradicating the presence of this Waseca Area Violence Intervention creasing public awareness regarding crime in their daily lives. Project. domestic violence and the community- f Washington County Intervention Services. based organizations that are working Wilkin County Outreach. PRINCIPLE, COURAGE, AND TAX to prevent others from falling victim CUTS W.I.N.D.O.W. to this violence. Wilder Community Assistance Program. Mr. President, domestic abuse is not Mr. GRAMS. Mr. President, I want to Wilder Domestic Abuse Program. take the remaining part of my time Winona Domestic Assault Intervention limited to the privacy of households. In Project. many places of businesses, battered in- this morning to talk about a subject I Woman House. dividuals are subjected to emotional have worked on for the 6 years I have Woman House advocates at St. Cloud hos- abuse in the form of threatening phone been in Congress, and that is trying to pital. calls and harassment. raise the awareness of the issue of WomanKind (Fairview Ridges). Fortunately, companies have begun taxes in this country, that we are now WomanKind (Fairview Southdale). to recognize that employees who are taxed at an all-time high, and that WomanKind (Fairview University). subject to domestic violence at home Americans need and deserve some form WomanSafe. of tax relief. Women Alive Crisis Center ‘‘Equay Be Mah are more likely to be absent from work De See Win’’ and less productive at their jobs. So, Mr. President, I wanted to take Women of Nations Eagles’ Nest Shelter. In fact, a recent survey of corporate time to rise today to express my dis- Women of Nallons Community Advocacy senior executives by Roper Starch appointment over the Senate’s failure Project. Worldwide on behalf of Liz Claiborne, to fulfill its obligations to the tax- Women’s Advocates. Inc. found that: Fifty-seven percent of payers to consider and to pass any kind Women’s Center, Inc. those surveyed believe that domestic of tax relief bill this year. Women’s Center of Mid-Minnesota. violence is a major problem in society; Fiscally, socially, morally, this is a Women’s Coalition. tremendous mistake, and I believe my Women’s Resource Center of Steele Coun- thirty-three percent feel that domestic ty. abuse had a negative impact on their colleagues are wrong. I am equally dis- Women’s Resource Center. bottom lines; and four out of ten execu- appointed at President Clinton’s WRAP of Cottonwood County. tives surveyed were personally aware threats to veto this important legisla- WRAP of Lincoln County. of employees and other individuals af- tion had it passed. It is the same case WRAP of Redwood Co. fected by domestic violence. as last year when, in the State of Vir- Women’s Shelter. I commend efforts by private sector ginia, when then-candidate for Gov- Women’s Shelter intervention Project. employers who have responded to this ernor Gilmore was pledging a tax cut of Womenspace. problem by establishing Employee As- his own. The President said at that Yellow Medicine Women’s Center. African American Family Service. sistance Programs and other services time that Virginians would be ‘‘self- Battered Women’s Programs. that will safely protect employees who ish’’ to vote for tax relief. This year he Battered Women’s Justice Project. have become domestic violence vic- says ‘‘to squander money on a tax Battered Women’s Legal Advocacy Project. tims. cut’’—again, that is how President

VerDate Mar 15 2010 00:42 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00009 Fmt 4624 Sfmt 0634 E:\1998SENATE\S10OC8.REC S10OC8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S12280 CONGRESSIONAL RECORD — SENATE October 10, 1998 Clinton is describing our attempt this Government is still in the red. There- The Republican Party, on the other year to let working Americans keep fore, they oppose using the unified hand, believes Government should be more of their money—‘‘to squander budget surplus for any kind of tax re- limited only to that amount needed for money on a tax cut.’’ lief. necessary services, and this is, indeed, Unfortunately, there is a pattern Mr. President, they are right on the a choice between two futures: a choice here, and apparently neither President facts, but I believe they are dead wrong between small Government or big Gov- Clinton nor the rest of Washington has about the conclusion. Washington’s big ernment, a choice between fiscal dis- changed their mind. Both want as spenders are the ones who have ex- cipline or irresponsibility, a choice be- much money as they can get from the hausted every penny of the Social Se- tween individual freedom or servitude taxpayers, so they can spend it the way curity surplus. They have already ex- to a bigger Government, responsibility they think is best. hausted every penny of the Social Se- or dependency, long-term economic According to Webster’s Dictionary, curity surplus on other Government prosperity for the Nation or some the definition of ‘‘squander’’ is ‘‘to programs. They have wish lists. The short-term benefits for the special in- spend extravagantly or foolishly.’’ I taxpayers shouldn’t be denied relief terest groups and the politicians who say to President Clinton that I am from a stifling tax burden just because feed them. shocked that you actually believe tax- Washington has managed to juggle the Mr. President, that is exactly why payers squander their salaries in this Nation’s bank accounts. the American taxpayers ushered in an way and that only Washington can I urge my colleagues to review the era of Republican congressional leader- spend the money wisely. With such CBO’s ‘‘August Economic and Budget ship in 1994, a new majority that highly placed disregard for the fiscal Outlook,’’ which shows precisely where pledged to provide fiscal discipline, in- abilities of the American people, I be- revenues will come from in the next 10 dividual freedom, personal responsi- lieve it is no wonder that Washington years. The data shows that the greatest bility, and prosperity for all people. Unfortunately, Congress has so far has been unwilling to give the tax- share of the projected budget surplus delivered on only a small portion of payers more control over their own comes directly from income taxes paid that pledge, blocked by the competing dollars. by the taxpayers, not the FICA taxes. Let me focus first this morning, Mr. In 1998, individual income, corporate, forces of tax-and-spend versus tax re- President, on the budget surplus. In a and estate taxes make up nearly 80 per- lief and personal empowerment. The recent series of high-profile celebra- cent of total tax revenue growth, while choice I spoke of a moment ago has become blurred as both parties fight in a tions, folks here in Washington could the share of FICA tax is about 20 per- misguided effort to purchase some hardly wait to rush to the cameras to cent. General tax revenues are ex- measure of the people’s trust. claim credit for the $70 billion budget pected to grow by $723 billion, or 60 percent, over the next 10 years. They think you can run out and with surplus, watching them slap their own their own money buy the trust of the backs with their hands. Politicians What I am saying, Mr. President, is that the taxpayers generated the sur- American people. But in doing so, Con- have been humming happy ditties all gress has allowed annual Federal around this town while approving big- plus, outside the money earmarked for Social Security, and the Government spending to increase from $1.5 trillion ticket spending items right and left. in 1994 to $1.73 trillion today. In fact, Meanwhile, those same politicians pon- has no right to absorb it. It is only moral and fair to return at least a part Federal spending has never been high- tificate about preserving the surplus to of it to the taxpayers. er. During the same period, the na- ‘‘save Social Security first.’’ If we don’t return at least a portion tional debt has grown from $4.9 trillion The truth is, the White House didn’t of the surplus to the taxpayers, and do to $5.7 trillion, an $810 billion increase generate this surplus, nor did the U.S. it soon, Washington is going to spend in our national debt. House or the Senate. The politicians it, leaving nothing then for tax relief Mr. President, take a look at the cur- have no rightful claim to the surplus. for the vitally important task of actu- rent debate over the supplemental Washington should not be allowed to ally trying to preserve and save Social spending to be included in the omnibus sit around and dream up ways to spend Security. Such spending will only en- appropriations bill. A week ago, we even more money because a surplus has large the Government, and if the Gov- were hearing encouraging words that arrived. Working Americans are re- ernment is enlarged today, it will much of this would be offset by cuts in sponsible for propelling our economy make it even more expensive to sup- other programs. Now, as we careen to- forward and generating this budget port it in the future. ward adjournment, it appears there surplus, and they deserve to get it back Mr. President, the situation we find will be as much as $20 billion in emer- as tax relief. There should be no de- ourselves in today reflects two very gency spending—out of the surplus, of bate. Taxpayers have overpaid, and, fundamentally different principles of course—and the report this morning is like any other time a person overpays government: Are we going to embrace that there could be even more as we for anything, they ought to get it back. tax cuts for working Americans, or are work and maybe have to give in to the If you go into a store and pay too much we going to embrace more spending for administration demands for more for an item, you expect to get the social engineering? money to be spent in order to avoid a change back. But somehow in Wash- I am proud to serve here as a member Government shutdown. ington, if you overpay, that is just too of the Republican Party—a party Mr. President, despite a $70 billion bad, Washington wants to pocket your which, since its creation, has firmly budget surplus, total taxation is at an money. held that a person owns himself, a per- all-time high. The tax relief Congress The surplus is the product of the re- son owns his labor, and a person owns enacted last year does not go nearly far cent revenue surge—a surge, I believe, the fruits of his labor. We believe the enough. I am proud we had the courage generated directly by increased produc- pursuit of individual and States rights to enact the $500 per-child tax credit, tivity and increased individual income and a restricted role for the Federal which I authored in 1993, but when our tax payments, including the payment Government create economic growth tax bill overall returns to the tax- of capital gains taxes as investors took and prosperity. payers only one cent for every dollar advantage of the lower capital gains The two parties have traditionally they send to Washington—especially rate—again, proving that reducing the offered a marked choice—a choice be- now, during a time of surpluses—I be- tax rates can actually increase reve- tween the Democratic Party belief that lieve we have failed them miserably. nues, because the economy will grow. people should work for the Government Working Americans see their earn- Very little of the surplus comes from or our vision of a Government that ings taxed, and then re-taxed repeat- policy changes, however, related to def- works for the people. One party be- edly. Washington taxes their income icit reduction. lieves that it has a right to spend every when they first earn it. It is then sub- On the other hand, there are others penny that it can take from working ject to excise taxes when they spend it. in this Chamber who claim there is no Americans—again echoing the Presi- And their savings and investments are surplus, that if we subtract the dollars dent’s words that people are ‘‘selfish’’ also taxed. And when they die, the Washington has routinely raided from to want to cut taxes or to ‘‘squander Government is the first to put their the Social Security trust fund, the money on a tax cut.’’ hands into the estate.

VerDate Mar 15 2010 00:42 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00010 Fmt 4624 Sfmt 0634 E:\1998SENATE\S10OC8.REC S10OC8 mmaher on DSKCGSP4G1 with SOCIALSECURITY October 10, 1998 CONGRESSIONAL RECORD — SENATE S12281 Farmers and small business owners relief, Washington is always reluctant further tax relief. Some States, such as cannot easily pass their businesses on to act. Missouri and Florida, even have con- to their families because the huge es- Oh, they say it is easy to give an stitutional or statutory requirements tate and gift taxes still exist. The gov- election year tax cut. That is impos- to return to taxpayers any revenues ernment imposes a 43 percent tax on all sible around here. It is hard to get a that exceed income growth. American couples simply because they tax cut. It is easy to spend; it is very The States have proved that if gov- are married. Even seniors—retired peo- hard to give tax relief. Congress even ernment performs only legitimate and ple in our country, our senior citi- goes so far as to compel tax cut advo- necessary functions, and does so with- zens—they have their earned benefits cates to pay for any tax relief via out waste, it can leave much more taxed. Washington’s PAYGO rule. That is a money in the pockets of the people. If the 105th Congress was supposed to rule that requires increasing taxes on And it is the people who can best spend be about cutting taxes and forever re- some or lowering entitlement benefits their money, whether it is for their forming the tax system—and I believe in order to cut tax relief to others. children’s health care, saving for a col- that was our mandate—the 105th Con- Nothing is more ridiculous than the re- lege education, giving more to their gress did not complete the job. quirement of the PAYGO rule. We must church and charities, or just helping to Our progress has fizzled not because repeal it so we can do the job of shrink- set something aside for their retire- our efforts have lost the support of the ing the size of the Government and let ment. people—in fact, two thirds of the Amer- working families keep more of the Now, Mr. President, back to the ques- ican people supported tax relief during money, the money they earn in order tion of the budget surplus and who the 1996 elections, and broad tax relief to spend it on their priorities—not should spend this money—the Govern- still enjoys overwhelming support Washington priorities. ment or the workers who earned it? today—but because some in Congress One major reason for the failure of In conclusion, Washington’s tax and have lost their backbones. They have this year’s tax relief bill is that Wash- spending policies have systematically lost the courage to make a stand on ington’s spin doctors took full advan- ignored our children’s future and se- principle and not abandon their moral tage of Americans’ anxiety about So- verely undermined the basic functions compass at the first sign of resistance. cial Security. ‘‘Save Social Security of the family. We must abandon those In too many instances, this Congress first’’ is just another Washington lie. policies and help restore the family to has become a willing collaborator of Mark my word, Mr. President, Social an economic position capable of ful- President Clinton’s tax-and-spend poli- Security crisis or not, Washington has filling its vital responsibilities. In an- cies. We have helped to build a bigger, spent, and will continue to spend, sur- swer to my own question, we must pro- more expensive government, and in plus dollars whenever it can for its pet vide American families with meaning- doing so have abandoned our promise programs. ful tax relief, allowing them to keep of tax relief for working Americans. Since 1983, Washington has raided more of their hard-earned money. Mr. President, each time Congress more than $700 billion from the trust It is their money. Let us give it back. makes a promise to the taxpayers—and funds for non-Social Security pro- Thank you very much, Mr. President. then deserts them—Congress comforts grams, and Congress approved that I yield the floor. itself by saying it would come back spending every time. In the next 5 Mr. ENZI addressed the Chair. next year and enact an even larger tax years, the Federal Government will The PRESIDING OFFICER. The dis- cut. This is self-deceiving at best. raid another $600 billion from the So- tinguished Senator from Wyoming is If we do not take a stand today, what cial Security trust funds. Those politi- recognized. is going to happen to make us more cians who insist on using the surplus f courageous a year from now? Besides, for Social Security have voted for each year we wait, the Government most, if not all, of those spending bills, ORDER FOR RECORD TO REMAIN takes an ever-greater bite of the earn- and so it is those politicians who in the OPEN FOR INTRODUCTION OF A ings of working Americans and the last 15 years have stripped the trust BILL Government gets bigger and becomes funds of any surplus. Mr. ENZI. Mr. President, I ask unani- harder to trim in the future. Mr. President, despite the rhetoric mous consent that the Senators from Another point I would like to make, about saving Social Security, few have Mexico, Mr. DOMENICI and Mr. BINGA- Mr. President, is that a tax cut is not come up with a concrete plan to save MAN, have until 6 p.m. tonight to file spending. Only in convoluted book- it. The problem is that by law, the So- the Valles Caldera Preservation Act for keeping practices of Washington would cial Security surplus has to be put into purposes of introducing the bill. we consider a cut in tax rates to be Treasury securities. That means Wash- The PRESIDING OFFICER. Is there spending. The reason is simple: first, it ington can legally use the money to objection? is the taxpayers’ money that supports fund its favorite non-Social Security Hearing none, without objection, it is and keeps the Government running; programs, rendering these ‘‘assets’’ lit- so ordered. second, tax relief not only ensures a tle more than Treasury IOUs. Unless f healthy and strong economy, but also we change the law, Washington will OSHA LEGISLATION DURING THE generates more revenues for the Gov- continue to abuse Social Security until 105TH CONGRESS ernment. it goes broke. In a recent study, economists at the I agree that reforming Social Secu- Mr. ENZI. Mr. President, I can think Institute for Policy Innovation con- rity to ensure its solvency is vitally of few issues that are more important cluded that the House-passed tax relief important. Any projected budget sur- to the average American than the safe- bill of $80 billion—an unforgivably plus should be used partly for that pur- ty and health of our Nation’s workers. moderate tax relief measure, in my pose. In fact, I have introduced a bill to During the last 2 years, Congress view—would add an additional $300 bil- just do that. Yet, I believe strongly stepped up to the plate and confronted lion to our GDP and create more than that the surplus alone will not save So- this important issue head-on. The end 135,000 jobs. This economic growth cial Security and therefore funda- result was three separate bills becom- would in turn generate about $80 bil- mental reform is needed to change it ing law that amended the Occupational lion in additional revenues to the Fed- from a pay-as-you-go system to a fully Safety and Health Act of 1970. Until eral Government. funded one. this year, in 28 years, the act was Mr. President, when it comes to fed- Mr. President, the States offer us an amended one time—in 1990—and that eral spending, Washington rarely asks excellent model of how we should use was to increase fines. The American how the American taxpayers can afford the budget surplus. In recent years, workplace has changed quite a bit over to give up more of their income to the many Governors have cut taxes and the last three decades and I’m pleased government, and how such excessive shrunk the size of their governments, that Congress in now changing, too. spending will affect a working family’s and in the process have turned budget During the first session of the 105th budget and finances. Equally upsetting deficits into surpluses. They are now Congress, I introduced a comprehensive is the fact that when it comes to tax using those surpluses to provide even piece of legislation with the support of

VerDate Mar 15 2010 00:42 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00011 Fmt 4624 Sfmt 0634 E:\1998SENATE\S10OC8.REC S10OC8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S12282 CONGRESSIONAL RECORD — SENATE October 10, 1998 Senator GREGG and FRIST and 20 other SAFE Act was crafted to strike that Despite the Senate’s inability to Senate cosponsors, entitled the Safety balance. complete its consideration of the SAFE Advancement for Employees Act or In addition to establishing OSHA Act, legislative successes were still SAFE Act. At the same time, my good qualified third party consultations, the abundant. Last June, I was pleased to friend, JIM TALENT, introduced similar SAFE Act included additional vol- have had the opportunity to pass two legislation in the House which received untary and technical compliance ini- bills in the Senate that were authored strong, bipartisan support—a rarity for tiatives to assist employers in deeming by Representative BALLENGER. One was such a polarized issue. their worksites ‘‘safe’’ for their em- the Occupational Safety and Health It is important to understand that ployees. I firmly believe that it is this Administration Compliance Assistance both the Senate and House versions did approach that will ultimately bring a Authorization Act, and the other was not attempt to reinvent OSHA’s wheel, greater number of workplaces into H.R. 2877, which eliminated the imposi- just change its tires. Treading water compliance with existing law and help tion of quotas in the context of OSHA’s for 27 years, OSHA has never seriously prevent more workers from being in- enforcement activities. Both bills are attempted to encourage employers and jured or killed on the job. now law and have already been imple- employees in their efforts to create The SAFE Act would ensure that fed- mented by OSHA. safe and healthful workplaces. Instead, eral occupational safety and health Following the same lines as the OSHA chose to operate according to a standards are based on sound, scientific SAFE Act, these two bills were written command and control mentality. This data that all vested parties can live to increase the joint cooperation of approach has lead to burdensome and with. By injecting independent sci- employees, employers, and OSHA in often incomprehensible regulations entific peer review into the rule-mak- the effort to ensure safe and healthful which do not relate to worker safety ing process, future regulations would working conditions. It will never be and health and are, quite often, only reflect greater clarity and simplicity— productive to threaten employers with sporadically enforced. helping businesses to better understand fines for non-compliance when millions The AFL–CIO publically acknowl- what they are required to do. I also be- of safety conscious employers don’t edges that with only 2,450 State and lieve that scientific peer review will know how they are supposed to com- Federal inspectors regulating 6.2 mil- help speed up the implementation proc- ply. Nor is it effective to burden em- lion American worksites, an employer ess for OSHA’s rules by eliminating ployers with more compliance mate- can expect to see an inspector once conflicts of interest. Under the present rials than they can possibly digest or every 167 years. In addition to this system, draft rules can idle in the proc- understand, many of which have no ap- enormous time lapse, the sheer diver- ess for more than 15 years, because no plication to their business. To achieve sity of safety and health concerns one agrees on the rule’s scientific va- a new, cooperative approach, the vast stemming from restaurants to funeral lidity. At the same time, annual fund- majority of employers who are con- homes across America prohibits an in- ing continues to be channeled toward cerned about worker safety and health spector from fully understanding each research at the expense of the tax- must have compliance assistance pro- worker’s needs and concerns. payer. That must change. grams made more accessible to them OSHA seems more concerned about Last October, we marked up the and more related to their actual oper- collecting fines each year than it is SAFE Act in the Senate Committee on ation. Passage of H.R. 2864 was a good, about improving worker safety. OSHA Labor and Human Resources and favor- first step in providing employers just proposes over $140 million in fines to be ably reported the bill out of com- that. paid by the regulated public each mittee. In the following months, I con- H.R. 2877 eliminated enforcement year—over $100 million of that total tinued to work with Senators KEN- quotas for OSHA compliance inspec- gets assessed. Even more troubling is NEDY, DODD, WELLSTONE, and REED—as tors. This bill prohibits OSHA from es- that OSHA’s existing voluntary and co- well as with Assistant Secretary of tablishing a specific number of cita- operative compliance programs impact Labor, Charles Jeffress, to find com- tions issued, or the amount of penalties a mere fraction of worksites and con- mon ground that would result in a bill collected. I believe that inspectors sume only a small share of the agen- that would pass the House and Senate must not face institutional pressure to cy’s annual budget. Despite OSHA’s and be signed by the President into issue citations or collect fines, but claim that it is ‘‘putting a lot of re- law. A number of good suggestions rather they should work to identify po- sources into compliance assistance and were made to improve the bill, but re- tential hazards and assist the employer partnership initiatives,’’ only 22 per- maining differences and the lack of in abating them. OSHA’s success must cent of OSHA’s 1997 fiscal appropria- floor time quickly became an insur- depend upon whether the nation’s tion was spent on federal and state mountable obstacle. workforce is safer and healthier, and plan compliance assistance. It is dif- I was pleased to have the opportunity not upon meeting or surpassing goals ficult for anyone to say that current to testify at a hearing chaired by for inspections, citations, or penalties. initiatives are having an impact on the Chairman TALENT in the House Small In July, both the Senate Committee number of workplace fatalities and in- Business Committee. As the House au- on Labor and Human Resources and juries when OSHA spends so little of its thor of the SAFE Act, Representative full Senate unanimously passed S. 2112, annual funds on preventive measures. TALENT understood the importance of the Postal Employees Safety Enhance- It is important to point out that the third party consultations. He invited ment Act. The bill was written to bring SAFE Act would not have dismantled specialists in occupational safety and the Postal Service and its more than OSHA’s enforcement capabilities. It health to share their candid opinions of 800,000 employees under the full juris- was that approach that kept Congress the bill. Having witnessed the testi- diction of OSHA. Government must from amending the 1970 statute for so mony firsthand, I was pleased that play by its own rules. Although all fed- long. Enforcement alone, though, will safety and health professionals—those eral agencies must comply with the never ensure the safety of our nation’s who have the most education, training, 1970 Occupational Safety and Health workplaces and the health of our work- and field experience in abating occupa- statute, they are not required to pay ing population. By encouraging em- tional hazards—embraced this bill so penalties issued to them by OSHA. The ployers to seek individualized compli- enthusiastically. lack of any enforcement tool renders ance assistance from OSHA qualified In both Chambers, the SAFE Act compliance requirements for the public third party consultants, the SAFE Act gained considerable momentum after sector ineffective at best. would ensure that more American its introduction. The bill stuck to a My first look at this issue occurred workplaces are in compliance with ex- theme—advancing safety and health in when Yellowstone National Park was isting law while allowing OSHA to con- the workplace. Maintaining this spirit cited by OSHA last February for 600 centrate its enforcement resources on of cooperation, it is my intention to violations—92 of them serious. One of those worksites that truly need imme- promote this theme well into the 106th those serious violations was the park’s diate attention. America would be bet- Congress. Until each of the SAFE Act’s failure to report an employee’s death ter served by an OSHA that manages provisions become law, this debate is to OSHA. In fact, Yellowstone posted its resources more wisely and the far from over. five employee deaths in the past three

VerDate Mar 15 2010 00:42 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00012 Fmt 4624 Sfmt 0634 E:\1998SENATE\S10OC8.REC S10OC8 mmaher on DSKCGSP4G1 with SOCIALSECURITY October 10, 1998 CONGRESSIONAL RECORD — SENATE S12283 and one-half years. Although there are Congress completes its work this year. loss of confidence in western states these and other serious problems noted I fully intent to press forward—well would have been devastating. In this in the park’s safety and health record, into the 106th Congress. More hearings time when Congress is working to offer overall federal injury, illness, lost on this important issue are necessary. a $4–7 billion aid package to provide work-time, fatality and workers’s com- We need a bipartisan effort—making certainty for crop farmers, I am pensation rates show the United States headway in every area we can reach pleased that we have been able to reach Postal Service leading the pack in al- agreement. We need to dedicate some agreement to provide some certainty most every category. time to reaching that agreement. This for people in the oil patch—and we did Postal workers injuries and illnesses will not happen by accident! Good leg- it without spending a single federal represent 42 percent of the govern- islation will ultimately be achieved dime. ment’s lost-time cases. From 1992 to and increased compliance will undoubt- The 1998 Circuit Court decision has 1997, the Postal Service paid an annual edly result if we simply remain com- clouded all existing lease and royalty average of $505 million in workers’ mitted to it. agreements for production of gas out of compensation costs and its annual con- I want to conclude my remarks by coal where the ownership of the oil and tribution accounted for almost on- thanking members and staff for mak- gas estate differs from ownership of the third of the federal program’s $1.8 bil- ing occupational safety and health coal estate. This uncertainty jeopard- lion price tag. These alarming statis- such a successful issue during the last izes the expected income of all royalty tics made my decision to slowly bring two years. I want to first thank my owners and the planned investment and the federal government into compli- House colleague and friend JIM TAL- development of all existing lessees. ance rather easy. ENT. His impressive knowledge of labor The legislation we passed yesterday In 1982, the Postal Service became law, complemented by his labor coun- addresses that problem faced by owners fiscally self-sufficient—depending en- sel, Jennifer Woodbury, helped bring and lessees by preserving the policy tirely on market-driven revenues rath- the SAFE Act to the attention of all status quo for valid contracts in effect er than taxpayer dollars. They should House members. I look forward to work on or before the date of enactment. The be congratulated for that. Today, the on many more bills with JIM TALENT in legislation applies only to leases and United States Postal Service handles the coming years. I would also like to contracts for ‘‘coalbed methane’’ pro- over 43 percent of the world’s mail—de- thank Congressmen BALLENGER, duction out of federally-owned coal. It livering more mail in one week than GREENWOOD, and MCHUGH and their does not apply to leases and contracts Federal Express and the United Parcel staff. They, too, should be com- for gas production out of coal that has Service combined deliver in an entire plimented for their efforts. Senators been conveyed, restored, or transferred year. With annual profits that exceed GREGG, FRIST, and JEFFORDS also de- to a third party, including to a feder- $1.5 billion, if the Postal Service were a serve tremendous thanks. Their staffs ally recognized Indian tribe. private company, it would be the 9th spent many hours considering OSHA It is important to note that many largest business in the United States legislation. Finally, I want to thank older leases and contracts for gas pro- and 29th in the entire world. my Democratic colleagues on the Sen- duction on coal lands were negotiated Realistically speaking, the Postal ate Labor Committee. Senator KEN- prior to ‘‘coalbed methane’’ becoming a Service is hardly a federal agency. It’s NEDY was especially considerate in lis- term of art. It is, therefore, necessary better characterized as a self-suffi- tening to my concerns and I want to to clarify that we do not mean to ex- cient, quasi-government entity. It is extend my appreciation to him and his clude those valid leases and contracts the only federal agency where its em- staff. I am confident that this relation- that convey rights to explore for, ex- ployees can collectively bargain under ship will pick up next year where it left tract and sell ‘‘natural gas’’ from appli- the 1935 National Labor Relations Act. off. cable lands simply because they do not include the term ‘‘coalbed methane.’’ It’s the only federal agency that posts f annual profits exceeding $1.5 billion. In That is a possible ambiguity that arose fact, the Postal Service exhibits al- PASSAGE OF COALBED METHANE very late in the process, after the time most every characteristic of a private LEGISLATION when we could have reasonably per- business, yet it never had to fully com- Mr. ENZI. Mr. President, I want to fected the bill, but it is important to ply with federal occupational safety take a minute before the Senate ad- note because before this year, ‘‘coalbed and health law—until now. Last journs to thank a few Members who methane’’ has been considered in the month, Representative GREENWOOD, au- have been very helpful on an issue of field, to be part of the gas estate. We thor of the House bill, took the initia- critical importance to my state. chose the term ‘‘coalbed methane’’ be- tive to pass the Postal Employees Safe- Yesterday evening, the Senate adopt- cause using the term ‘‘natural gas from ty Enhancement Act in the House and ed by unanimous consent, S. 2500, a bill the coalbed,’’ left uncertainty about sent it on to the President. to preserve the sanctity of existing the gas rights in light of the 10th Cir- Since the bill’s enactment, I learned leases and contracts for production of cuit ruling. The Department of Interior that OSHA and the National Park methane gas from coal beds. An affirm- suggested we use ‘‘coalbed methane’’ so Service, have entered into safety pact. ative U.S. Government policy has been as to be very clear regardless of wheth- I commend both agencies for this com- the legal basis for these contracts for er the Courts rule ‘‘coalbed methane’’ mitment to workplace safety and nearly eighteen years and it was the to be part of the coal estate or part of health. It is my understanding that intent of this bill to preserve the exist- the natural gas estate in the future. other federal agencies could do the ing rights of all the parties in light of While the bill has yet to be com- same. I hope that such agreements legal uncertainties cast by a July 20, pleted in the House, I want to thank with OSHA represent a way to intro- 1998, 10th Circuit Court of Appeals deci- some of the members who have helped duce third party consultations as a sion. us craft legislation that addresses what means of bringing a greater number of On September 18, I introduced the we intended to cover. Without any of federal worksites into compliance. bill to protect these people, with my them, we would not have been able to The enactment of S. 2112 and the pre- colleagues, Senator JEFF BINGAMAN of go forward. Because of very limited vious two bills marks the first signifi- New Mexico and Senator CRAIG THOMAS time, we had to expedite the process, cant step toward modernizing the na- of Wyoming. The affected people live and we could not have done it without tion’s 28 year-old occupational safety all across America, but most of the ac- an enormous amount of help. Senator and health law. I believe that these in- tual lands are in the western states, CAMPBELL, and his Indian Affairs Com- cremental accomplishment were primarily New Mexico, Utah, Colorado, mittee staff, were supportive in work- achieved because this Congress is com- Wyoming, and Montana. ing out the provisions covering the mitted to improving conditions for The circumstances faced by interest tribes. Senator MURKOWSKI, and his En- America’s workers. We have a long owners would be severe. Personal and ergy Committee staff, were very help- road ahead of us and that road, so far, corporate bankruptcies would have led ful in working out the details of the had been too slow to save American to local bank insolvencies and the mul- bill and moving it through that Com- lives. This debate will not end when tiplying effect on unemployment and mittee. Senator BUMPERS, and his com-

VerDate Mar 15 2010 00:42 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00013 Fmt 4624 Sfmt 0634 E:\1998SENATE\S10OC8.REC S10OC8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S12284 CONGRESSIONAL RECORD — SENATE October 10, 1998 mittee staff, were very cooperative and session of the 106th—from Federal row Wilson, a university president at provided many helpful suggestions. Communications Commission reau- Princeton before reaching the White The Department of Interior Solici- thorization, to international satellite House, counselled, ‘‘When you have tor’s office provided good counsel and privatization, to transition to digital, read the Bible, you will know it is the worked with us through the process. to competition issues, to Internet pri- word of God, because you will have And the people out in the field, the vacy and content. found in it the key to your own heart, coal companies, who have valid con- Speaking of the Internet, let me take your own happiness and your own cerns about their existing and future this opportunity to mention my deep duty.’’ leases to main federal coal, were great admiration for the contributions made Here in the Senate, as in the House of to work with. Nothing in this bill by retiring Senator DAN COATS in this Representatives, there are several should be construed to limit their abil- area. Although not a member of the small Bible study groups. Members of ity to mine federal coal under valid Commerce Committee, he has tire- all faiths regularly come together, leases, nor should anything be con- lessly advocated against the Internet away from the public spotlight, to strued to expand their liabilities to becoming a dirty book for our children, learn from one another and seek inspi- coalbed methane owners covered by the while responsibly taking into account ration from sacred Scripture. bill. The gas producers and land owners first amendment concerns. I have the For my part, I find in those sessions really came together and proposed rea- utmost respect for his efforts, and will both enlightenment and challenge. For sonable solutions to solve the prob- truly miss his wisdom and his counsel. any time we read the Bible with an lems. Without their cooperative effort, Mr. President, I appreciate the con- open heart, we may find ourselves fall- this bill would not have happened. tributions of each of my subcommittee ing short, in some way, of the standard So again, my appreciation goes out colleagues this Congress, and look for- it sets for us and the promise it offers to all the people who helped us remove ward to working with them next year us. the possibility of devastating situa- in tackling some tough issues and ush- In that way, reading the Bible can be tion—extensive private property ering in a truly new era of communica- like a spiritual work-out. And if, in the takings, retroactive liabilities, and tions. process, we feel the spiritual equiva- mountains of combative litigation. On f lent of a few sore muscles, we can re- behalf of thousands of Wyomingites, member the saying, ‘‘No pain, no NATIONAL BIBLE WEEK thank you. gain.’’ And the gain that Scripture of- Mr. President, I yield the floor. Mr. LOTT. Mr. President, one of our fers lasts a lifetime—and even longer. f country’s most important observances For that reason, it is especially ap- is National Bible Week sponsored by propriate that Thanksgiving Day ROLE OF THE SENATE SUB- the National Bible Association. This comes during National Bible Week, for COMMITTEE ON COMMUNICA- year, as in the past, it will be observed the Bible itself is something for which TIONS by houses of worship and individuals of we should give thanks, on that day and Mr. LOTT. Mr. President, I want to all faiths during the week in which every day. take this time to recognize the impor- Thanksgiving Day falls. That will be f tant role and work of the Senate’s Sub- from Sunday, November 22 through committee on Communications this Sunday, November 29. TITLE BRANDING LEGISLATION Congress and emphasize the challenges It is my great and underserved honor Mr. CAMPBELL. Today I express my that lie ahead. to be this year’s congressional co-chair appreciation to the majority leader, The communications world encom- of that observance. In that capacity, I Senator FORD, Senator GORTON, and passes so many areas that personally would like to recommend to all my col- Senator MCCAIN for their hard work touch the lives of practically every leagues, and to the American people, and efforts on S. 852, the National Sal- person in America—from the telephone that, in this season of strife and divi- vage Motor Vehicle Consumer Protec- to the television to the computer. The sion we look to National Bible Week as tion Act. I believe S. 852 will deter ways we interact is a fitting reflection an opportunity to join together in automobile theft and protect con- of the fast times in which we live and prayerful reflection. sumers by providing them with notice the constant evolution of technologies. The German poet Heinrich Heine of severely damaged vehicles. I would Traditional systems are changing. Op- called the Bible ‘‘that great medicine like to emphasize one provision con- tions are expanding. Companies con- chest of humanity,’’ the greatest cure tained in the bill. It is my under- tinue to shift gears and take the nec- for the worst ills of mankind. And he standing that the process of reducing essary risks to bring fruition of the observed how—during the great fire salvage and nonrepairable vehicles to landmark 1996 Telecommunications that destroyed the Second Temple of parts cannot begin before receipt of a Act to the marketplace and to con- ancient Israel—the Jewish people salvage title, nonrepairable vehicle sumers. rushed to save, not the gold and silver certificate, or other appropriate owner- Enacting policies to encourage, and vessels of sacrifice, not the bejeweled ship documentation under state law. If not hinder, such activity is Congress’ breastplate of the High Priest, but a vehicle could be dismantled prior to challenge. Mr. President, I believe the their Scriptures. For the Word of God the receipt of the appropriate owner- members of this subcommittee are was the greatest treasure they had. ship documents, then the parts from a ready and willing to embrace that chal- It remains our greatest treasure severely damaged vehicle could skirt lenge. today. The lessons it teaches, and the the titling system which this bill has I want to express my sincere grati- morality it commands, are the founda- put in place to deter automobile theft. tude to my colleague and friend, Sen- tion on which a free people build self- Is my understanding correct? ator CONRAD BURNS of Montana, for his government. In that sense, the Bible is Mr. LOTT. Yes, that is correct. A ve- yeoman’s work as chairman of the sub- the charter of our liberties. Daniel hicle that would qualify as a nonrepair- committee during the course of this Webster put it this way: ‘‘If we abide able or as salvage vehicle cannot be Congress. His guidance has been instru- by the principles taught by the Bible, taken apart for its parts before appro- mental in bringing focus to the many our country will go on prospering.’’ priate ownership documentation has issues that merit attention. His inclu- That has never been a partisan senti- been received for that vehicle. sive and enthusiastic approach has en- ment, and neither should it be so Mr. President, I appreciate that the gaged all who work with him, and I ap- today. Two great political rivals of the Senator from Colorado has taken the preciate that. early twentieth century, both of whom time to address this important issue. Mr. President, many contentious pol- achieved the Presidency and attained f icy areas were considered by the sub- world leadership, agreed on this one committee during the 105th, and con- point. MEDICARE HOME HEALTH FAIR sensus proved elusive. I am confident, Teddy Roosevelt said, ‘‘A thorough PAYMENT ACT OF 1998 though, that the stage has been set for knowledge of the Bible is worth more Mr. HATCH. Mr. President, as we several productive debates in the first than a college education.’’ And Wood- begin to wrap-up the 105th Congress,

VerDate Mar 15 2010 00:42 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00014 Fmt 4624 Sfmt 0634 E:\1998SENATE\S10OC8.REC S10OC8 mmaher on DSKCGSP4G1 with SOCIALSECURITY October 10, 1998 CONGRESSIONAL RECORD — SENATE S12285 there remains one essential item of have been raised about severe equity home health businesses. One of my con- business which I strongly believe war- issues in the payment limit levels. stituents, Mr. Marty Hoelscher, CEO of rants Senate action before we adjourn For instance, wide disparities exist in Superior Home Care in Salt Lake City for the year. reimbursement levels ranging from $760 testified at the hearing. He stated: Over the past year, numerous con- to $53,000 on average per beneficiary. The IPS provides a flat payment to agen- cerns have been raised by home health The payment limits are further exacer- cies for each patient, regardless of the care agency officials and Medicare bated by a major distinction in the amount of care the patient medically re- beneficiaries over the new Medicare payment rules between the so-called quires. What happens to the really sick pa- ″ tients? What happens to the agencies who payment system established in the Bal- ‘‘new’’ verses ‘‘old agencies. don’t turn their backs on them? In Utah, the anced Budget Act of 1997. The impact of the IPS has caused patients of the 18 free standing agencies As a strong home health care advo- comparable home health agencies pro- which have recently ceased operations are cate in the Senate for virtually my en- viding comparable home health serv- filling our emergency rooms, intensive care tire career, I am well aware of the im- ices to receive very different reim- units, nursing homes or morgues. portance home health care is for Medi- bursement payments. The payment I have been working concertedly with care beneficiaries with acute needs limit issues are further exacerbated by my Senate colleagues to resolve these such as recovering from joint replace- the imposition of a 15% across the problems. For example, in July, I ments and chronic conditions such as board cut in payment rates which is joined with 20 of my colleagues in the heart failure. scheduled to take effect in October Senate on July 16, 1998 to cosponsor S. Utahns have consistently told me 1999. 2323, the ‘‘Home Health Access Preser- they prefer to receive care in their According to a September 1998 report vation Act of 1998.’’ homes rather than in institutional set- from the General Accounting Office, at This legislation was designed to al- tings such as hospitals and nursing least 12 home health agencies in my leviate the problems created by the homes. state of Utah have been forced to close IPS, and specifically, to address the In fact, patients actually do better in their doors since the implementation problems associated with the high their recovery while at home than in a of the IPS. costs of caring for the sickest patients nursing home or hospital. And, clearly, This leaves just 75 agencies to serve and those who need care on a long term the costs associated with home care the entire estimated home health care basis. are far less than what is charged in an population of 22,000 home health bene- After Senator GRASSLEY introduced institutional setting. ficiaries throughout my state. S. 2323, it became evident that the As a member of the Finance Com- And, I note for my colleagues who budget neutrality provision—which ne- mittee, which has jurisdiction over the have not had the pleasure of visiting cessitated that S. 2323 incur no new Medicare program, I am also well Utah, with its spectacular vistas and spending—was requiring us to reallo- aware of the impending financial crisis magnificent mountains, essentially is a cate resources in a way that disadvan- Medicare was facing last year. Home rural state with population centers far taged some home health providers in health care was the fastest growing apart. order to assist others. component in Medicare. So if you live in Panguitch or Vernal, Many members expressed concerns Between 1989 and 1996, Medicare and your home health agency closes its that because of the problems inherent spending for home health services rose doors, you will be very lucky if there is in such a reallocation, we should just from $2.5 billion to $16.8 billion. Con- any other service option available. repeal the IPS totally. I was extremely currently, according to the GAO, the Home health care is particularly sympathetic to those concerns, but un- number of home health agencies grew vital in improving efforts to deliver fortunately, the Congressional Budget from 5,700 in 1989 to more than 10,000 in health care in rural areas where qual- Office advised us that such a repeal was 1997. ity, long term care has been deficient very costly; in fact, it was so costly Indeed, home health care spending for too long. that a total repeal was clearly out of threatened to consume more and more As my colleagues recall last year, question if we are to maintain the bal- of the limited Medicare dollars. there was no disagreement on the need anced budget which is so important to Last year, Congress was faced with to move to the PPS. The home health our country. I am pleased that as a result of sev- an extraordinary and daunting task— care industry was supportive of the eral months work by the Chairman and namely, the financial survival of the new system—and remains supportive to ranking minority member of the Fi- Medicare program. this day. nance Committee, Senator ROTH and No less than President Clinton’s own The problem is with moving to the Senator MOYNIHAN along with those of advisors who serve as his appointed PPS from the current cost-based pay- us on the committee have developed Trustees for the Medicare Trust Fund ment system. Data which was not this bipartisan proposal which is sup- warned Congress that absent imme- available to accurately develop the ported by the home health industry. diate action Medicare Part A would be PPS would be needed before such a sys- The legislation we are introducing insolvent by the year 2001. tem could be put into place. today, while not a perfect measure, is a Clearly something had to be done. Accordingly, the IPS was proposed as responsible bill that will improve prob- The status quo was unacceptable. a mechanism to provide HCFA was the lems inherent in the current law and To control the rapid cost growth in necessary baseline information to de- which will work to the benefit of thou- all components of Medicare, Congress velop the PPS. sands of Americans who rely on very passed the Balanced Budget Act of 1997, As we now know, the IPS has re- valuable home health care services. or the BBA, which required the Health sulted in new cost limits causing many Under this legislation, several steps Care Financing Administration home health agencies to close and re- will be taken to improve the IPS. (HCFA), the agency responsible for ad- sulted in beneficiaries, particularly First, the bill will reduce the ex- ministering the Medicare program, to those with high-cost needs, to have dif- treme variations in payment limits ap- implement a Prospective Payment Sys- ficulty in obtaining care. plicable to old agencies within states tem that sets fixed, predetermined pay- I am especially mindful of the situa- and across state lines. ments for home health services. tion in my state of Utah where many of The bill also provides for a reduction Until that system could be developed my constituents have talked to me in the payment level differences be- and implemented, agencies would be about the problem. tween ‘‘old’’ and ‘‘new’’ agencies. Such paid through an Interim Payment Sys- I have met with officials from Utah’s provider distinctions exist nowhere tem, or IPS, which imposes limits on home health agencies from around the else in the Medicare system and con- agencies’ cost-based payments. These state as well as with beneficiaries who tribute to the arbitrary nature of the limits were designed to provide incen- depend on the services performed by payment system for health care serv- tives to control per visit costs and the these agencies. ices. number and mix of visits for each user. Moreover, the Senate Small Business Moreover, the bill delays for one year Since the implementation of the IPS Committee held a hearing on July 15, the 15% across the board cut in pay- on October 1, 1997, numerous concerns 1998 on the impact of the IPS on small ment limits for all agencies that was to

VerDate Mar 15 2010 00:42 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00015 Fmt 4624 Sfmt 0634 E:\1998SENATE\S10OC8.REC S10OC8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S12286 CONGRESSIONAL RECORD — SENATE October 10, 1998 take effect in October 1999. Home IRAQ Last month, press reports suggested health agencies in my state tell me Mr. KERRY. Mr. President, there are that administration officials had se- this is perhaps the most significant and two subjects that I wish to bring to my cretly tried to quash aggressive U.N. important feature of the bill. colleagues’ attention this afternoon. inspections at various times over the The bill further directs the Health First, I want to talk about an issue of last year, most recently in August, in Care Financing Administration to take enormous international consequence— order to avoid a confrontation with all feasible steps necessary to minimize the situation with respect to Iraq. For Iraq—this despite repeatedly demand- the delay in the implementation of the the last 2 months, as we know, Saddam ing the unconditional, unfettered ac- PPS. Specifically, HCFA will be re- Hussein has been testing, yet again, cesses that I referred to earlier for the quired to accelerate data collection ef- the full measure of the international inspection teams. Scott Ritter, the forts necessary to develop the case-mix community’s resolve to force Iraq to longest serving American inspector in system which is at the heart of the eliminate its weapons of mass destruc- UNSCOM, charged at the time that the PPS model. tion. That has been the fundamental administration had intervened at least Mr. President, I am pleased to add goal of our policy toward Iraq since the six or seven times since last November my name as an original cosponsor to end of the gulf war and is reflected in when Iraq tried to thwart UNSCOM’s this vitally needed legislation. the U.N. agreements reached in the work by refusing to allow Ritter and As we are all too painfully aware, our aftermath of the war. other Americans to participate on the budget rules require that any legisla- Two months ago, on August 5, Sad- teams, in an effort to delay or postpone tion such as this which proposes ‘‘new’’ dam Hussein, formally adopting a rec- or cancel certain UNSCOM operations Medicare spending be accompanied by ommendation that had been made by out of fear of confrontation with Iraq. a reduction in spending to offset the the Iraqi parliament 2 days earlier, an- Those were serious charges. We held costs. nounced that Iraq would no longer per- an open hearing, a joint hearing be- While I understand the need to main- mit U.N. weapons inspectors to con- tween the Armed Services Committee tain budget neutrality, I am concerned duct random searches in defiance of its and Foreign Relations Committee on these charges. There were some protes- about the offsets in the Roth bill, but I obligations under those U.N. resolu- tations to the contrary by the adminis- am pleased Senator ROTH has agreed to tions that were adopted at the end of tration and a subsequent effort to en- consider other offsets in order to ad- the war, and also in violation, I might sure that the Security Council would dress my concerns. We cannot move add, of its agreement last February maintain the sanctions against Iraq, forward without an offset since the with U.N. Secretary General Kofi but, frankly, nothing more. Congressional Budget Office has scored Annan, to give UNSCOM teams, accompanied by diplomatic overseers, uncon- In explaining his reasons for resign- the bill at a cost of $1 billion. ing, Scott Ritter stated that the policy With the assurance that I now have ditional access to all sites where UNSCOM believed that Iraq may be shift in the Security Council supported received from the Chairman of the Fi- ‘‘at least implicitly’’ by the United nance Committee, I am lending my stockpiling weapons or agents to make those weapons. States, away from an aggressive in- support to this important bill. spections policy is a surrender to Iraqi Our overriding objective at this late Let’s understand very clearly that ever since the end of the war, it has leadership that makes a ‘‘farce’’ of the time with only hours left in the 105th been the clear, declared, accepted, and commission’s efforts to prove that Iraq Congress is to get this bill passed by implemented policy of the United is still concealing its chemical, biologi- the Senate and into conference with States of America and its allies to pre- cal, and nuclear weapons programs. the House. vent Saddam Hussein from building Administration officials have cat- I am pleased that the House approved weapons of mass destruction. And as egorically rejected the notion that U.S. its version of the legislation just mo- part of that agreed-upon policy, we policy has shifted, either in terms of ments ago, and while the House legisla- were to be permitted unlimited, unfet- our willingness to use force or support tion is not the measure I would want, tered, unconditional, immediate access for UNSCOM. They have also disputed its passage does move us substantially to the sites that we needed to inspect Ritter’s charges of repeated U.S. ef- closer toward enactment of a final bill in order to be able to make that policy forts to limit UNSCOM’s work. Writing prior to adjournment. real. in the New York Times on August 17, I can assure my constituents in Utah Iraq’s defiance and the low-key— Secretary Albright stated that the ad- who depend on home health care serv- some would say weak—response of the ministration has ‘‘ruled nothing out, ices that I will continue to pursue leg- United States and the United Nations including the use of force’’ in deter- islative resolution of these financing initially went unnoticed, in part be- mining how to respond to Iraqi actions, issues to preserve the home health care cause of other events, including the and that supporting UNSCOM is ‘‘at benefit for all Medicare beneficiaries. dual bombings of our embassies in the heart of U.S. efforts to prevent And finally, let me also assure the Kenya and Tanzania, as well as the ob- Saddam Hussein from threatening his dedicated and hard working people of vious fascination with domestic events neighborhood.’’ While acknowledging Utah who provide home health care that have dominated the headlines now that she did consult with UNSCOM’s services that I will continue to work for so many months. Those events, Chairman, Richard Butler, after Iraq with them to bring some logic to the frankly, have continued to obscure the suspended inspections last month, she new Medicare payment system. reality of what is happening in Iraq; argued that he ‘‘came to his own con- I especially want to thank Marty and, accordingly, the reality of the po- clusion that it was wiser to keep the Hoelscher, Steve Hansen, Grant tential threat to the region—a region focus on Iraq’s open defiance of the Se- Howarth, Vaughn McDonald, Dee where, obviously, the United States, curity Council.’’ Attempting to proceed Bangerter and the many others in for 50 years or more, has invested enor- with the inspections, in her view, Utah, especially the Utah Association mous amounts of our diplomatic and would have ‘‘allowed some in the Secu- of Home Health Agencies, for their even our domestic energy. rity Council to muddy the waters by counsel and leadership over the past Press reports of the administration’s claiming again that UNSCOM had pro- year in working on this very complex efforts to intervene in, or at minimum, voked Iraq,’’ whereas, not proceeding issue. to influence UNSCOM’s inspection would give us a ‘‘free hand to use other Mr. KERRY addressed the Chair. process and the resignation of Amer- means’’ if Iraq does not ‘‘resume co- The PRESIDING OFFICER. The Sen- ican UNSCOM inspector, Scott Ritter, operation’’ with the Security Council. ator from Massachusetts is recognized. focused the spotlight briefly on our At that time, she also stressed the im- Mr. KERRY. Mr. President, I ask Iraqi policy and raised some serious portance of maintaining the com- unanimous consent that I be permitted and troubling questions about our ef- prehensive sanctions in place to deny to proceed in morning business for such forts to eliminate Iraq’s weapons of Saddam Hussein the ability to rearm time as I may consume. mass destruction. The principal ques- Iraq and thus threaten his neighbors. The PRESIDING OFFICER. Is there tion raised was a very simple one: Are I appreciate the Secretary’s efforts to objection? those efforts still intact, or has our set the record straight. But, Mr. Presi- Without objection, it is so ordered. policy changed? dent, I have to say, in all candor, that

VerDate Mar 15 2010 00:42 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00016 Fmt 4624 Sfmt 0634 E:\1998SENATE\S10OC8.REC S10OC8 mmaher on DSKCGSP4G1 with SOCIALSECURITY October 10, 1998 CONGRESSIONAL RECORD — SENATE S12287 I don’t think that her op-ed or subse- to make a concerted effort to downplay other hand, have steadfastly insisted quent statements by the administra- the offense to avoid confrontation at that sanctions remain in place until he tion have put to rest legitimate ques- all costs, even if it means implicit and complies. These differences over how to tions —legitimate questions or con- even explicit backing down on our stat- deal with Iraq reflect the fact that cerns about what our policy is and ed position as well as that of the Secu- there is a superficial consensus, at where it is headed—not just our policy rity Council. That stated position is best, among the Perm 5 on the degree alone, I might add, but the policy of clear: That Iraq must provide the U.N. to which Iraq poses a threat and the the United Nations itself, and the pol- inspectors with unconditional and un- priority to be placed on dismantling icy of our allies in Europe. fettered access to all sites. Iraq’s weapons capability. For the Secretary Albright may well be cor- The fact of the matter is, in my judg- United States and Britain, an Iraq rect in arguing that this course helps ment, the U.S. response and that of the equipped with nuclear, chemical or bio- Security Council to Saddam Hussein’s keep the focus on Iraq’s defiance. It logical weapons under the leadership of latest provocations are different in may well do that. But it is also true Saddam Hussein is a threat that al- tone and substance from responses to that the U.N.-imposed limits on most goes without description, al- earlier Iraqi provocations. UNSCOM operations, especially if they Three times in the last 11 months are at the behest of the United States, though our current activities seem to Saddam Hussein has launched increas- work completely to Saddam Hussein’s call into question whether or not one ingly bolder challenges to UNSCOM’s advantage. needs to be reminded of some of that authority and work. In November, he They raise questions of the most seri- description. Both of these countries refused to allow American inspectors ous nature about the preparedness of have demonstrated a willingness to ex- to participate on the teams. Although the international community to keep pend men, material and money to curb that crisis ultimately was resolved its own commitment to force Iraq to that threat. through Russian intervention, the destroy its weapons of mass destruc- France, on the other hand, has long United States and Britain were leading tion, and the much larger question of established economic and political re- the effort to push the Security Council our overall proliferation commitment lationships within the Arab world, and to respond strongly. In subsequent itself. They undermine the credibility has had a different approach. Russia weeks, Saddam Hussein refused to of the United States and the United also has a working relationship with grant UNSCOM access to Presidential Nations position that Iraq comply with Iraq, and China, whose commitment to the Security Council’s demands to pro- palaces and other sensitive cites, nuclear nonproliferation has been less vide unconditional and unfettered ac- kicked out the team that was led by than stellar, has a very different cal- Scott Ritter, charging at the time that cess to those inspectors. And, obvi- culus that comes into play. Iraq may he was a CIA spy, and threatened to ously, every single one of our col- be a threat and nonproliferation may expel all inspectors unless sanctions leagues ought to be deeply concerned be the obvious, most desirable goal, but were removed by mid-May. about the fact that by keeping the in- By February, the United States had spectors out of the very places that whether any of these countries are lean armada of forces positioned in the Saddam Hussein wants to prevent them gitimately prepared to sacrifice other gulf, and administration officials from from entering, they substantially interests to bring Iraq to heel remains our President on down had declared our weaken UNSCOM’s ability to make any questionable today, and is precisely intention to use military force if nec- accurate determination of Iraq’s nu- part of the calculus that Saddam Hus- essary to reduce Iraq’s capacity to clear, chemical or biological weapons sein has used as he tweaks the Security manufacture, stockpile or reconstitute inventory or capability. And in so Council and the international commu- its weapons of mass destruction, or to doing, they open the door for Iraq’s al- nity simultaneously. threaten its neighbors. lies on the Security Council to waffle Given the difference of views within Ultimately diplomacy succeeded on the question of sanctions. the Security Council, and no doubt the again. In a sense, it succeeded again. It I recognize that the Security Council fears of our Arab allies, who are the po- averted the immediate crisis. One can recently voted to keep the sanctions in tential targets of Iraqi aggression, it is certainly raise serious questions about place and to suspend the sanctions re- really not surprising, or shouldn’t be to how effective it was with respect to the view process. But, Mr. President, not- any of us, that the administration has longer-term choices we face. But cer- withstanding that, the less than max- privately tried to influence the inspec- tainly in the short term, Secretary imum level of international concern General Kofi Annan successfully struck and focus on the underlying fact that tion process in a way that might avoid an agreement with Iraq to provide no inspections take place, the continu- confrontation while other efforts were UNSCOM inspectors, accompanied by ation of Iraq’s weapons of mass de- being made to forge a consensus. But diplomatic representatives, full and struction program, and the fact that now we have to make a judgment about unfettered access to all sites. There is Saddam Hussein is in complete con- the failure to reinstate the inspection little doubt that this agreement would travention of his own agreements and process and ask ourselves whether or not have been concluded successfully of the U.N. requirements—that con- not that will destroy the original without the Security Council’s strong tinues to be the real crisis. And Sad- ‘‘box’’ that the administration has de- calls for Iraqi compliance combined dam Hussein continues to refuse to fined as so essential to carrying out with the specter of the potential use of comply. our policy. American force. Since the end of the gulf war, the Is it possible that there is a sufficient Saddam’s latest provocation, how- international community has sought to lack of consensus and a lack of will ever, Mr. President, strikes at the isolate and weaken Iraq through a dual that will permit Saddam Hussein to ex- heart of our policy, and at the capacity policy of sanctions and weapons inspec- ploit the differences among the mem- of UNSCOM to do its job effectively. As tions. Or, as one administration official bers of the Security Council and to cre- long as the U.N. inspectors are pre- said, to put him in a ‘‘box.’’ In order to ate a sufficient level of sanctions fa- vented, as they are, from undertaking get the sanctions relief, Iraq has to tigue that we would in fact move fur- random no-notice inspections, they eliminate its weapons of mass destruc- ther away from the policy we origi- will never be able to confirm the fun- tion and submit to inspections. But it nally had? damentals of our policy. They will has become painfully apparent over the never be able to confirm what weapons last 11 months that there are deep divi- To the extent that his efforts are suc- Iraq still has or what it is doing to sions within the Security Council par- cessful, we will find ourselves increas- maintain its capability to produce ticularly among the Permanent 5 mem- ingly isolated within the Security weapons of mass destruction. bers over how to deal with Saddam Council. In fact, it is already clear that Yet, when confronted with what may Hussein’s aggressive efforts to break some of our allies in the Security be the most serious challenge to out of the box. Council are very open to the Iraqi idea UNSCOM to date, the administration’s Russia, France and China have con- of a comprehensive review of its per- response, and that of our allies and the sistently been more sympathetic to formance in dismantling all of its nu- United Nations, has been to assidu- Iraq’s call for sanctions relief than the clear, biological, and chemical weap- ously avoid brandishing the sword and United States and Britain. We, on the ons—a review which Iraq hopes will

VerDate Mar 15 2010 00:42 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00017 Fmt 4624 Sfmt 0634 E:\1998SENATE\S10OC8.REC S10OC8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S12288 CONGRESSIONAL RECORD — SENATE October 10, 1998 lead to a lifting of some if not all of the our key allies simply don’t place the The fact is, Mr. President, over these sanctions. same priority on proliferation as we do. last months there has been precious I think the question needs to be The proliferation of weapons, be they little to prevent Saddam Hussein from asked as to how long we can sustain conventional or of mass destruction, developing that capacity without the our insistence on the maintenance of remains one of the most significant inspectors there and without the un- sanctions if support for sanctions con- issues on the international agenda. Ob- wavering determination of the United tinues to erode within the Security viously, solutions won’t come easily. Nations to hold him accountable. So Council. If it is indeed true that sup- But I am convinced that in the case of the question still stands, What is our port is eroding—and there are great in- Iraq, our failure would set the inter- policy and what are we prepared to do dicators that, given the current lack of national community’s nonprolifera- about it? confrontation, it is true—then the tions efforts back enormously. Mr. President, I had asked to speak question remains, How will our origi- Our allies need to understand that also on another topic for a moment. I nal policy be affected or in fact is our the ramifications of letting Saddam see my colleague from New Mexico is original policy still in place? Hussein out of the box that we put him here. Let me ask him what his inten- In April, Secretary Albright stated in with respect to inspections would be tions might be now and maybe we can that, ‘‘It took a threat of force to per- serious and far-reaching. So I believe work out an agreement. suade Saddam Hussein to let the U.N. we need to keep the pressure on them Mr. DOMENICI. Mr. President, I am inspectors back in. We must maintain to stand firm, to stand firm with us, on the list for 20 minutes, and I have a that threat if the inspectors are to do and unless we reassert our leadership 2:30 beginning on the budget process their jobs.’’ and insist that Iraq allow those inspec- working with the White House on some That was the policy in April. Wheth- tors to do their job, we will have de- offsets. How much longer did the Sen- er the administration is still prepared stroyed a number of years of our effort ator need? to use force to compel Iraqi compliance in ways, Mr. President, that we will re- Mr. KERRY. Mr. President, under is now an enormous question. The Sec- gret in our policy for the long haul. those circumstances, I know that the retary says it is, but the recent revela- I would point out also that there are chairman needs to get to those talks. I tions raise questions about that. experts on Iraq, those in the inspec- was going to speak for a longer period In addition, it seems to me that there tions team, those at the U.N. and else- of time. What I will do is just proceed are clear questions about whether or where in our international community, for another 5 minutes, to summarize not the international community at who are very clear that Saddam Hus- my thoughts, if it is agreeable. this point in time is as committed as it sein’s first objective is not to lift the The PRESIDING OFFICER. Without was previously to the question of keep- sanctions. His first objective is to keep objection, it is so ordered. Iraq’s weapons of mass destruction pro- ing Iraq from developing that capacity f to rob its neighbors of tranquility gram—that will come ahead of all else. The situation is really far more seri- THE EDUCATION CRISIS through its unilateral development of a ous than the United Nations, the Con- secret weapon program. Mr. KERRY. Mr. President, we ap- gress or the administration have made In May, India and Pakistan, despite pear to be, obviously, stuck on the clear to the American people or dem- all of our exhortations, conducted nu- issue of education in the Senate as in onstrated through the level of diplo- clear tests. In August, U.S. intelligence the country. We have been talking macy and focus that is currently being reports indicated that North Korea is about the crisis for a long time now. placed on this issue. It is not simply building a secret underground nuclear The fact is that there isn’t a commu- about eliminating Saddam Hussein’s facility, and last month North Korea nity in the country that isn’t strug- capacity to threaten his neighbors. It tested a new 1,250-mile-range ballistic gling with its public school system. is about eliminating Iraq’s weapons of missile which landed in the Sea of Vouchers gain in popularity notwith- mass destruction—chemical, biologi- standing the fact that they are only Japan. Each and every one of these cal, and nuclear. Failure to achieve events raises the ante on international going to solve the problem for a few of this goal will have a profound impact, our kids. And the truth is that too proliferation efforts and should cause I believe, on our efforts with respect to many of our schools have a diminished the Senate and the Congress as a whole our other nonproliferation efforts in- tax base and an inability through the and the administration, in my judg- cluding completion of our talks with property tax to be able to do what they ment, to place far greater emphasis Russia and the ultimate ratification of need to do. and energy on this subject. the START II treaty by the Duma. We also know that too many of our If the United States and the United In recent conversations that I had students are graduating from high Nations retreat in any way on Iraq, if with Chairman Butler, he confirmed we are prepared to accept something that Saddam Hussein has only this one school and given a degree by a prin- less than their full compliance with the goal—keeping his weapons of mass de- cipal even though principals in this international inspection requirement struction capability—and he further country know that too many of those that has been in place now for 7 years, stated with clarity that Iraq is well out kids can’t even read or write properly. it will be difficult to understand how of compliance with U.N. resolutions re- Of 2.6 million kids who graduated from we will have advanced the cause of pro- quiring it to eliminate those weapons high school a year and a half ago, fewer liferation in any of those other areas and submit to inspections and out of than a third graduated with a pro- that I just mentioned. compliance with the agreement that he ficient reading level. One-third were Mr. President, over the years, a con- signed up to in February with Kofi below basic reading, one third were at sensus has developed within the inter- Annan. basic reading level, and only 100,000 of national community that the produc- Mr. President, I believe there are a them had a world-class reading level. tion and use of weapons of mass de- number of things we could do, a num- Thirty percent of our kids need reme- struction has to be halted. We and oth- ber of things both in covert as well as dial reading, writing, and arithmetic in ers worked hard to develop arms con- overt fashion. There is more policy en- the first days when they go to college. trol regimes toward that end, but obvi- ergy that ought to be placed on this ef- The truth is, we also have a crisis of ously Saddam Hussein’s goal is to do fort, and I believe that, as I have set teachers and their availability in our otherwise. Iraq and North Korea and forth in my comments, it is critical for school system. We need some 2 million others have made it clear that they are us to engage in that effort, to hold him new teachers in the course of the next still trying, secretly and otherwise, to accountable. 10 years. We will need to hire 60 per- develop those weapons. In February, when we had an armada cent of them in the course of the next The international consensus on the positioned in the gulf, President Clin- 5 years. This year alone, 61,000 new need to curb the production and use of ton said that ‘‘one way or the other, we teachers went into our school systems. weapons of mass destruction is wide- are determined to deny Iraq the capac- But the fact is, we are not able to draw spread, but it is far from unanimous, ity to develop weapons of mass destruc- from the best universities, the best col- and, as the divisions within the Secu- tion and the missiles to deliver them. leges, and the best students because we rity Council over Iraq indicate, some of That is our bottom line.’’ barely pay enough for subsistence as

VerDate Mar 15 2010 00:42 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00018 Fmt 4624 Sfmt 0634 E:\1998SENATE\S10OC8.REC S10OC8 mmaher on DSKCGSP4G1 with SOCIALSECURITY October 10, 1998 CONGRESSIONAL RECORD — SENATE S12289 starting salary and because too many How is it that you can have a pro- ance models and teach students to the high- kids come out of college today with fessor in a college who would not be est standards (58 percent of school districts loan payments due and with other op- able, on a long-term basis—yes, maybe are below either the national or their state median). Although money alone will not portunities that draw them away from on a provisional basis—but on a long- solve the problems in poor school districts, it the prospect of teaching. term basis to teach in the public school is impossible to solve without adequate re- We really do have a major set of system? We need to provide choice and sources. Rather than piecemeal, fragmented choices in front of us about our edu- competition within the public school approaches to reform, the Comprehensive cation system. There is a great strug- system. We need to have account- School Reform program is intended to foster gle here in Washington. A lot of people ability in those systems in ways that coherent schoolwide improvements that argue the Federal Government has no parents and children and the commu- cover virtually all aspects of a school’s oper- role whatsoever, there is nothing the ations. nity as a whole will be more involved To ensure that the vast majority of school Federal Government can do with re- in the life and breadth of that school. districts could engage in comprehensive spect to this. After all, only 7 percent I am going to be introducing legisla- school reform, Title I of the Elementary and of the budget comes from the Federal tion together with some Republican Secondary Education Act (ESEA) should also Government, and as we all know, it is colleagues later in the year. I will be be fully funded. Title I is the primary federal a cherished notion in America that putting it in now as an outline, for pur- help for local districts to provide assistance schools are run locally. And that is the to poor students in basic math and reading poses of the Record. I look forward, I skills. Title I currently provides help to way we want it. I agree with that. hope in the next Congress, to our op- There is nothing in what I propose that local school districts for additional staff and portunity to engage in a stronger and resources for reading and math, curriculum would suggest the Federal Government more lively debate about real solutions improvements, smaller classes, and training ought to increase its relationship. In to the crisis of education in America. poor students’ parents to help their children fact, it can decrease it. But we have to I yield the floor and ask unanimous learn to read and do math. However, Title I acknowledge the reality that there are consent the outline be printed in the only reaches two-thirds of poor students be- too many communities that simply cause of inadequate funding. Since 90 percent RECORD. cannot do it on their own. There is a of school districts receive at least some Title There being no objection, the outline whole new set of relationships that I funds, fully funding Title I and allowing was ordered to printed in the RECORD, need to be created in our education school districts to use these additional funds as follows: system between teachers and the prin- for comprehensive reforms would give cipals, the school boards and the layers A PLAN TO EDUCATE AMERICA’S CHILDREN schools the ability to implement comprehen- (By Senator John F. Kerry) sive reforms so that all students reach the of bureaucracy that have been created highest academic standards. for all of these years. TITLE I—VOLUNTARY STATE REFORM INCENTIVE Most poor school districts lack the re- So I suggest we ought to undo the bu- GRANTS sources to meet the vital educational needs reaucracy, think differently, think out If education reform is to succeed in Amer- of all of their students. A well-crafted proof the box and not be locked into a tra- ica’s public schools, we must demand noth- gram with the federal and state governments ditional debate between Democrats and ing less than comprehensive reform effort. working in close cooperation with one an- Republicans, conservatives and lib- The best public school districts are simulta- other could make major strides in closing erals. We ought to look at a way that neously embracing a host of approaches to these gaps and improving student performance. we can take the best practices, what educating our children; high standards and accountability, sufficient resources, small Comprehensive school reform will help works best in a parochial school, in a class sizes, quality teachers, motivated stu- raise student achievement by assisting pub- private school—or in a wonderful pub- dents, effective principals, and engaged par- lic schools across the country to implement lic school. The truth is, there are some ents and community leaders. We must not be effective, comprehensive school reforms that incredible public schools in this coun- half-hearted in our efforts to make reform are based on proven, research-based models. try where teaching is going on and kids feasible for every school in this country. We No new federal bureaucracy would be estab- are going on to the best colleges in the cannot address only one challenge in edu- lished—the program would be implemented at the state level. Furthermore, no funds country. When you go to those schools, cation and ignore the rest. We must make available the tools for real comprehensive could be used to increase the school bureauc- you will invariably find a principal, racy. School districts would implement a above all, who is energized, respected, reform so that every aspect of public education functions better and every element of comprehensive school reform program and evaluate and measure results achieved. creative, visionary; who has the re- our system is stronger. Schools would also provide high-quality and spect of the community, who is able to So let us now turn to a bold answer: Let’s continuous teacher and staff professional de- move the school into new curricula, make every public school in this country es- velopment and training, have measurable into a new relationship with the school sentially a charter school within the public goals for student performance and bench- school system. Let’s give every school the board, into a new relationship with the marks for meeting those goals, provide for chance to quickly and easily put in place the students and with the teachers and meaningful involvement of parents and the they have worked out their own hybrid best of what works in any other school—pri- local community in planning and imple- relationships with the teachers’ unions vate, parochial or public—with decentralized menting school improvement, and identify and with the layers of bureaucracy. control, site-based management, parental how other available federal, state, local, or engagement, and real accountability. private resources will be utilized to coordi- They have liberated themselves in Several schools across the country have many ways from what stifles creativity nate services to support and sustain the devised ways to accomplish this by raising school reform effort. in too many of our schools. In essence, standards to improve student achievement, The funding for the program would move they have become a charter school lowering class size, improving on-going edu- towards the goal of providing every school within the public school system. cation for teachers, and reducing unneces- district in the country enough funds to im- I believe what we ought to strive to sary middle-level bureaucracy. Numerous plement a high quality, performance-based do is to allow every school within the high-performance school designs have also model of comprehensive school reform at a public school system to effectively be- been created such as the Modern Red School- cost of $4,270. This would mean providing come a charter school within the pub- house program, the Success for All program, enough funds to bring every district up to lic school system, allow those schools and the New American Schools program. The the state or the national median, whichever results of extensive evaluations of these pro- to be able to have principals who run is higher (it is estimated that $30 billion an- grams have shown that these designs are nually would be needed to bring the per-pupil the school on a local basis, hiring successful in raising student achievement. expenditure of every school district up to the teachers from any walk of life, being Studies show that these many of these suc- national or state average). To move towards responsible for the quality of that cessful programs cost less than the national this goal, the federal government would pro- teaching. It does not make sense in median of basic education revenues per pupil vide funds and states would match this America that someone who can teach for K–12 school districts. If we brought all money (states would provide 10 to 20 percent at a college might not be allowed to schools up to the spending level of the na- with poorer states providing a smaller teach in a high school or in a sec- tional median, all schools could finance match). To receive these funds, states would these high-performance school designs. ondary or elementary school simply behave to provide a minimum spending effort Therefore, we should raise spending to the based on state and local school spending rel- cause they have not gone through the state or the national median, whichever is ative to the state’s per capita income. Fund- structure of the education system that higher, thereby allowing every school dis- ing would be $250 million in FY99, $500 mil- is now licensed to provide teachers in trict to finance and implement comprehen- lion in FY2000, $750 million in FY2001, $1 bil- most of our communities. sive reform based on proven high-perform- lion in FY2002, and $4 billion in FY2002.

VerDate Mar 15 2010 00:42 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00019 Fmt 4624 Sfmt 0634 E:\1998SENATE\S10OC8.REC S10OC8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S12290 CONGRESSIONAL RECORD — SENATE October 10, 1998 Fully fund Title I so almost all school dis- for troubled students, not to change discipli- percent of the total funds would be used by tricts would receive some funds to imple- nary actions against disabled students. the Secretary of Education to create a na- ment comprehensive school reform (90 per- Add a new title to the Elementary and Sec- tional hotline for potential teachers to recent of all local school districts receive Title ondary Education Act (ESEA) to establish a ceive information on a career in teaching. I funds). Funding would be $200 million in competitive state grant program for school TITLE VI—TEACHER QUALITY ENHANCEMENT FY99, $400 million in FY2000, $600 million in districts to establish ‘‘Second Chance’’ pro- GRANTS FY2001, $1 billion in FY2002, and $4 billion in grams. To receive the funds school districts We need to provide on-going education in FY2002. must enact district-wide discipline codes teaching skills and academic content knowl- TITLE II—ENSURE THAT CHILDREN BEGIN which use clear language with specific exam- edge, establish or expand alternative routes SCHOOL READY TO LEARN ples of behaviors that will result in discipli- to state certification, and establish or ex- nary action and have every student and par- Recent scientific evidence conclusively pand mentoring programs for prospective ent sign the code. Additionally, schools may demonstrates that enhancing children’s teachers by veteran teachers (according to use the funds to promote effective classroom physical, social, emotional, and intellectual the National Commission on Teaching and management; provide training for school development will result in tremendous bene- America’s Future, beginning teachers who staff and administrators in enforcement of fits. Many local communities across the have had the continuous support of a skilled the code; implement programs to modify stu- country have developed successful early mentor are more likely to stay in the profes- dent behavior including hiring school coun- childhood efforts and with additional re- sion). selors; and establish high quality alternative sources could expand and enhance opportuni- Establish Teacher Quality Enhancement placements for chronically disruptive and ties for young children. We must enhance Grants, a competitive grant awarded to violent students that include a continuum of private, local, and state early successful sup- states to improve teaching. The grants alternatives from meeting with behavior port programs for young children by pro- would have a matching requirement and management specialists, to short-term in- viding resources to expand and/or initiate must be used to institute state-level reforms school crisis centers, to medium duration in- successful efforts for at-risk children from to ensure that current and future teachers school suspension rooms, to off-campus al- birth to age six. possess the necessary teaching skills and Provide funds to States to make grants to ternatives. Funding would be $100 million per academic content knowledge in the subject local early childhood development year and distributed to states through the areas they are assigned to teach. In addition, collaboratives. States would fund parent Title I formula. establish Teacher Training Partnership education and home visting classes and have TITLE V—TEACHER RECRUITMENT AND ON-GOING Grants, designed to encourage reform at the great flexibility to decide whether to also EDUCATION INCENTIVE GRANT local level to improve teacher training. One support quality child care, helping schools Approximately 61,000 first-time teachers of the uses of these funds would be for states stay open later for early childhood develop- begin in our nation’s public schools each to establish, expand, or improve alternative ment activities, or health services for young year. Since the average starting salary for routes to state certification for highly quali- children. Communities would be required to teachers is a little more than $21,000 per fied individuals from other occupations such document their unmet needs and how they year, we need to raise their compensation to as business executives and recent college would use the funds to improve outcomes for attract a larger group of qualified people graduates with records of academic distinc- young childen so they begin school ready to into the teaching profession. Since the aver- tion. Another use would be to mentor pro- learn. Funding would be $100 million in FY99, age student loan debt of students graduating spective teachers by veteran teachers. Pro- $200 million in FY2000, $300 million in college who borrowed money for college is vide $100 million per year for these new FY2001, $400 million in FY2002, and $1 billion $9,068, the most effective way to provide fed- teachers training programs so that states in FY2002. eral assistance to states to raise teachers’ can improve teacher quality, establish or expand alternative routes to state certification TITLE III—EXCELLENT PRINCIPALS CHALLENGE salaries is to provide loan forgiveness. In ad- for new teachers, and mentor new teachers GRANT dition, scholarships ought to be available to the most talented high school students in by veteran teachers. Principals face long hours, high stress, and every state in return for a commitment to TITLE VII—INVEST IN COMMUNITY-BASED too little pay. To overcome these obstacles, teach in our public schools (North Carolina SCHOOLS AND COMMUNITY SERVICE principals in successful schools must have ef- has successfully recruited future teachers fective leadership skills. However, too few As many as five million children are home from within public high schools with the lure principals get the training they need in man- alone after school each week. Most juvenile of college scholarships). agement skills to ensure their school pro- involvement in crime—either committing States would be given funds to provide vides an excellent education for every child. crime or becoming victims themselves—oc- poor school districts the ability to raise Attracting, training, and retaining excellent curs between 3 p.m. and 8 p.m. Children who teacher salaries to attract and retain the principals is essential to helping every local attend quality after-school programs, how- best teachers. Funding would be provided school district become world class. ever, tend to do better in school, get along through the Title I ‘‘targeted grant’’ formula Establish a grant program to states to pro- better with their peers, and are less likely to (the minimum threshold would be 20% poor vide funds to local school districts to attract engage in delinquent behavior. Expansion of children or 20,000 poor children). Funding and to provide professional development for both school-based and community-based would be $500 million for FY 99, $500 million elementary and secondary school principals. after school programs will provide safe de- in FY 2000, $1 billion in FY 2001, $1 billion in Activities would include developing manage- velopmentally appropriate environments for FY 2002, and $2 billion in FY 2003. Addition- ment and business skills, knowledge of effec- children and help communities reduce the ally, full-time state certified public school tive instructional skills and practices, learn- incidents of juvenile delinquency and crime. teachers who teach in low-income areas or ing about educational technology, etc. Fund- In addition, many states and localities such who teach in areas with teacher shortages ing would be $20 million per year. States and as Maryland and the Chicago public school such as math, science, and special needs local school districts would contribute 25 system require high school students to per- would have 20 percent of their student loans percent of the total although poor school dis- form community service to receive a high forgiven after two years of teaching, an addi- tricts would be exempt from the match. school diploma. The real world experience tional 20 percent after three years, an addi- helps prepare students for work and instills TITLE IV—ESTABLISH ‘‘SECONE CHANCE’’ tional 30 percent after four years, and the re- a sense of civic duty. SCHOOLS FOR TROUBLED STUDENTS maining 30 percent after five years. The pro- Expand the 21st Century Learning Centers Parents, students, and educators know gram would be funded at $50 million each Act by providing $400 million each fiscal year that serious school reform cannot succeed year. Finally, an additional $10 million to help communities provide after-school without an orderly and safe learning envi- would be provided as grants to states that care. Grantees will be required to offer ex- ronment. The few students who are unwilling wish to provide signing bonuses for first- panded learning opportunities for children or unable to comply with discipline codes time teachers who teach in low-income areas and youth in the community. Funds could be and make learning impossible for the other or areas with teacher shortages. used by school districts to provide: literacy students need behavior management pro- Provide $10 million in grants for states to programs; integrated education, health, so- grams and high quality alternative place- establish a program to provide college schol- cial service, recreational or cultural pro- ments. Suspending or expelling chronically arships to the top 20 percent of SAT achiev- grams; summer and weekend school pro- disruptive or violent students is not effective ers or grade point average in each state’s grams; nutrition and health programs; ex- in the long run since these students will fall high school graduating class in return for a panded library services, telecommunications behind in school and may cause additional commitment to become a state certified and technology education programs; services trouble since they are frequently com- teacher for five years. States would con- for individuals with disabilities, job skills pletely. unsupervised; these students need al- tribute 20 percent of the funds for the schol- assistance; mentoring; academic assistance; ternative placements that provide super- arships. Five percent of the total funds could and drug, alcohol, and gang prevention ac- vision, remediation of behavior and mainte- be used by local school districts to hire staff tivities. nance of academic progress. Although some to recruit at the top liberal arts, education, Provide $10 million in grants to states that may resist this program for fear that it will and technical colleges (districts would be en- have established or chose to establish a be used to isolate disabled students, the pur- couraged to establish a central regional re- state-wide or a district-wide program that pose is to provide additional interventions cruiting office to pool their resources). One requires high school students to preform

VerDate Mar 15 2010 00:42 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00020 Fmt 4624 Sfmt 0634 E:\1998SENATE\S10OC8.REC S10OC8 mmaher on DSKCGSP4G1 with SOCIALSECURITY October 10, 1998 CONGRESSIONAL RECORD — SENATE S12291 community service to receive a high school had a more legitimate right to speak podium on down here to the first step diploma. States would determine what con- now than I, and I appreciate his per- into the well, is going to get a deserved stitutes community service, the number of mitting me to proceed. rest when you leave. That aisle and the hours required, and whether to exempt some carpet there is going to take a new low-income students who hold full-time jobs f breath and say there is nobody walking while attending school full-time. The grants SENATOR DALE BUMPERS would be matched dollar for dollar with half up and down on top of us, because Dale of the match coming from the state and local Mr. DOMENICI. First let me talk for BUMPERS is not walking, walking the education agencies and half coming from the a moment, since he is present on the floor there as he delivers his eloquent private sector. floor, of Senator BUMPERS, the senior speeches on the Senate floor. I only say TITLE VIII—EXPAND THE NATIONAL BOARD Senator from Arkansas. Let me use a that by way of the great respect we CERTIFICATION PROGRAM FOR TEACHERS couple of minutes of my time to say a have for the way you talk to us, and The National Board for Professional few words about him before I proceed talk to the American people. I am very Teaching Standards, which is headed by Gov. to talk about the budget and a few pleased that you used that little 30 feet Jim Hunt, established rigorous standards other matters. of carpet and hall as your place to talk. and assessments for certifying accomplished First, I want to say to Senator BUMP- Mr. BUMPERS. Thank you, Senator. teaching. To pass the exam and be certified, ERS, I don’t think he needs me to re- f teachers must demonstrate their knowledge peat again what I have said in com- and skills through a series of performance- ADDRESSING PRESIDENT CLINTON based assessments which include teaching mittee. He is going to be missed. He portfolios, student work samples, videotapes has been a real credit to this place Mr. DOMENICI. Mr. President, I and rigorous analyses of their classroom called the U.S. Senate. I have never want to talk about three or four teaching and student learning. Additionally, known him to behave, act, or in any things. I am going to try my very, very teachers must take written tests of their way conduct himself as to demean this best to be factual. I am concerned that subject-matter knowledge and their under- place. He has held it in respect, and here, in these waning days, considering standing of how to teach those subjects to that makes it a better place when we the situation that exists on Pennsyl- their students. The National Board certifi- do that. vania Avenue, that the President finds cation is offered to teachers on a voluntary But I also want to remind the Sen- basis and complements but does not replace himself in a very supercharged polit- state licensing. The National Commission on ate, since it has not been stated here ical environment. I don’t think I had to Teaching for America’s Future called for a on the floor as I know of, that in the say that. I think everybody knows goal of 105,000 board certified teachers by the energy and water appropriations bill it that. But I want to suggest that yester- year 2006 (since the exam began recently, was my privilege, at the behest of some day afternoon, or whatever time of day only about 2,000 teachers are currently board of Dale BUMPERS’ good friends here in it was that the President had a quickly certified). Since the exam costs $2,000, many the Senate, with the help of his staff called press conference to talk about teachers are currently unable to afford it. and others, to include a resolution hon- the Congress of the United States and Provide $189 million over five years so that states have enough money to provide a 90% oring him for his diligent and hard what we have and haven’t done, and subsidy for the National Board certification work on behalf of the public domain in particularly to say that we aren’t tak- of 105,000 teachers across the country. the United States—the forest lands, ing care of his education programs, and TITLE IX—HELP COMMUNITIES TO MODERNIZE the wilderness, the parks. In that bill, unless we do, he is going to keep us AMERICA’S SCHOOLS the resolution says we want him to be here. More than 14 million children in America known for as long as there is an Arkan- Normally, when I say ‘‘Mr. Presi- attend schools in need of extensive repair or sas. Thus, we took eight wilderness dent,’’ I am addressing the Chair, be- replacement. According to a comprehensive areas that are in his State that he had cause that is what we are supposed to survey by the General Accounting Office a lot to do with, and for name purposes do. If we care to address anyone here, (GAO) requested by Senator Moseley-Braun, we made all of them part of one wilder- we do it through ‘‘Mr. President.’’ Senator Kerry and others, the repair backlog ness called the Dale Bumpers Wilder- Permit me to address the Mr. Presi- totals $112 billion. Researchers at George- ness Area. dent on Pennsylvania Avenue, Presi- town University found that the performance of students assigned to schools in poor condi- That is now 91,000 acres in total that dent Bill Clinton. tion fall by 10.9 percentage points below will bear your name. I know many President Clinton, you have been those in buildings in excellent condition. other things could be done to indicate known to have a fantastic memory. As To help rebuild, modernize, and build over our esteem for you, but many of us a matter of fact, I think you acknowl- 5,000 public schools, provide federal tax cred- thought that this might just be one edged that at one point recently, al- its to school districts to pay interest on that would strike you as quite appro- though, as with many of us who grow nearly $22 billion in bonds at a cost of $5 bil- priate. And we hope so. It is now the older, you did indicate that with the lion over five years. law of the land. The President signed it passage of time and the pressure of TITLE X—ENCOURAGE PUBLIC SCHOOL CHOICE about 22 hours ago. Thus, I am here many things to do, that that great Many public schools have implemented saying it in your presence. memory fails every now and then. public school choice programs where stu- I thank you personally on behalf of Now, Mr. President—Bill Clinton—I dents may enroll at any public school in the our side of the aisle for everything you am suggesting that maybe your mem- public school system. In contrast to vouchers for private schools, public school choice have done. ory failed you when you gave that increases options for students but does not Mr. BUMPERS. Mr. President, if the speech yesterday. So let me tell you use public funds to finance private schools Senator will yield just a moment for what I remember about your education which remain entirely unaccountable to tax- me to say: I want that to be my legacy, programs that you claim we have not payers. Senator. You couldn’t have done any- funded. Provide $20 million annually in grants to thing that would please me more. I I want everybody to know that on states that choose to implement public have had a few accolades in my 24 many things regarding budgets and school choice programs. School districts years in the Senate. I have had several programs, you can look to the budget could spend the funds on transportation and other services to implement a successful things named after me. But I can tell that the President sends up here to see public school choice program. Up to 10 per- you that what you did in that Energy what it asks for and what we are giving cent of the funds may be spent by a school and Water Committee gives me unbe- him. This is the budget for the year we district to improve low performing school lievable satisfaction. The reason I are now appropriating, which started districts that lose students due to the public sponsored that legislation and fought technically on October 1. Here it is. school choice program. so hard for it several years ago is be- I had occasion, shortly after it was The PRESIDING OFFICER (Mr. cause I wanted my children and my issued, to have the education parts of ENZI). Under the previous order, the grandchildren to know what my values this reviewed. I remember coming to Chair recognizes the Senator from New were. I was trying to save something the floor of the U.S. Senate to say to Mexico for up to 20 minutes. for them. the President, which OMB agreed to, Mr. DOMENICI. Mr. President, I I thank you very much. ‘‘Mr. President, the official score- thank Senator SESSIONS from Alabama. Mr. DOMENICI. Then, might I say to keeper and official evaluator of budg- He was here ahead of me and, frankly, Senator BUMPERS, that aisle, from your ets for the U.S. Congress says that

VerDate Mar 15 2010 00:42 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00021 Fmt 4624 Sfmt 0634 E:\1998SENATE\S10OC8.REC S10OC8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S12292 CONGRESSIONAL RECORD — SENATE October 10, 1998 your request for money for two edu- dent intends to pay for them. All right? Social Security card played. How? ‘‘No cation programs—interest reduction so That is the first point I would like to tax cuts out of the surplus because it that schools can afford buildings they make today. jeopardizes Social Security.’’ That is need and so-called 100,000 teachers so Second point: There has been a lot of the typical every 2-year issue. It is we can lower the classroom ratio— discussion this morning on the floor of raised again. those two programs were found by the the Senate by some Senators about Let me suggest to Mr. President, Bill official budget analysts to not properly this issue of a Patients’ Bill of Rights. Clinton, you know, Mr. President, that have been placed in this budget. What I think the country understands, but we are about, in the next 72 hours, to they said is, they break the budget just so it won’t be left unaddressed pass a very big appropriations bill. that you just signed, Mr. President.’’ here this morning, let me again refresh Maybe Pennsylvania Avenue does not Point No. 1. our collective memories. With every- know this, but here is the best esti- Point No. 2: If they are so impor- thing that we have to do, we took 31⁄2 mate I have. We are about to spend— tant—and I am not denying that the weeks to debate the Patients’ Bill of spend; not tax, spend—$18 billion of the President feels they are, and maybe Rights on the floor of the Senate. surplus that was supposed to be saved many Senators feel they are—do you The minority can say we didn’t let it for Social Security. Got it? The same know what the President did in asking pass, but, Mr. President, the majority pot that the President says, ‘‘Don’t us to pay for them? He didn’t provide can say, they didn’t let it pass. They touch it. It’s for Social Security,’’ we the money to pay for them. He did not. had a bill; we had a bill. We had more are about to spend $18 billion of it for It is not in this budget. He said, ‘‘When than 50 votes; they did not. They kept so-called ‘‘emergencies.’’ And I will get you pass the cigarette tax, I would like our bill from passing which had more to that in a moment. you to use some of it for education.’’ than sufficient votes. So I ask, who is Friends here in the Senate and those Let me just say, that sort of says to to blame for a bill not passing? Again, listening, you cannot have it both me, ‘‘I couldn’t find room in the budget I want to be practical, I can’t say it is ways. You cannot say to Republicans, for these things that I am telling you all their fault, the minority’s fault, but ‘‘You can’t use the surplus to give back are very important. So if we get a ciga- clearly it is certainly not all the Re- to the American people in taxes, even rette tax, we’ll pay for them.’’ publicans’ fault. if it’s a tiny amount, but you can spend What was the really big issue be- Do you know what happened? After the surplus for bigger Government.’’ tween the two parties? And I leave this weeks of debate, we didn’t get a ciga- You know, it just does not wash. Both rette tax. one to the American people. The principal issue that divided us was the law- are diminishing, to some extent, the Mr. President, what I know is that surplus of $1.6 trillion that we expect the appropriators in the U.S. Senate, in yers of the United States. They support the minority heavily—not all of them, in the next decade. the bill that takes care of education— I do not think it will be that much. not all of them, but those who litigate. so there will be no misunderstanding, In fact, the year we are in right now is What did they want in the bill that we in this regular budget you asked for supposed to have an $80 billion surplus. $31.4 billion for education. Look at the didn’t want in the bill? We didn’t want a new right to go to court to sue man- I think it will be $20 billion off because appropriations bill, Mr. President. Ask of economics. And then we will spend OMB, your official people who look at aged care entities, HMOs. We left the right to sue the doctors and the profes- $18–, $20 billion of it that we did not it. See how much the Senate gave you sionals, but we didn’t want to create a plan to spend. Then we will have some- for education funding for the year you new right to sue the HMOs in courts of thing for defense next year that we are complaining about. Interesting, law for damages. need, and there will probably be none $31.4 billion—exactly what you asked We, on this side, for the most part— left for tax cuts. That is what it looks for. Now, Mr. President, you tell the not unanimously, but for the most like. American people you are going to keep part—have adopted a sense about So I want to just talk about one of us here until we do this, as if we are health care, and it says lawyers and the emergencies. the ones to blame for it not being lawsuits don’t deliver health care; law- I ask unanimous consent for 2 addi- done—that is, those two programs. yers and lawsuits make health care tional minutes. I am living in a different world, or cost more. We could not see why, if the The PRESIDING OFFICER. Without the President’s memory has failed him, minority and the President think it is objection, it is so ordered. because do you understand, I say to my such an enormous new status and set of Mr. DOMENICI. One of the ‘‘emer- fellow Senators, that the President is rights that we should adopt—and we gencies’’ is a real emergency. That is asking for that money now for these tend to agree—why would the minority to help agriculture in the United two programs—and for many Senators that didn’t have the votes to pass here States. But let me suggest, to help ag- it is doubtful whether that is the way but we had the votes to pass ours—why riculture in the United States, we sent to help education, but, nonetheless, would they deny a bill’s passage based the President a bill. We had $4 billion let’s just follow it. He is now saying he upon, they want lawyers back in the in the emergency funding for the farm- is going to keep us here until we do it. loop and we don’t want lawyers back in ers of the United States. But guess what. He knows, his helpers the loop? I leave it to those listening When the President of the United know, that he has to find programs and those who will look at the RECORD. States asked us for emergency money— within the Government to cut, which See if I am correct that that was the which he knew people like Senator are called offsets, in order to pay for biggest stumbling block, and see DOMENICI would start adding up to see those two programs. He knows that, be- whether the President and the minor- how much more you are spending of cause this budget says he didn’t have ity caused the Patients’ Bill of Rights the surplus than the Republicans room for it in here. He was making bill to fail or not. planned to use in tax cuts—the Presi- room through a cigarette tax that Those are two points, and I want to dent asked for $2.3 billion for agri- never happened. make a third. culture. We gave him $4 billion. As of right now, 2:25 p.m., I am not Mr. President, in the election past, But in the meantime, a distinguished aware that the President has sub- two things worked for the President. Senator on the minority side, whom I mitted a means to pay for those pro- He is probably the best public relations have great respect for, the minority grams. I am not aware that the Presi- President we have ever had. Two things leader, Senator DASCHLE, introduced a dent has told us how to pay for them if worked for him as certain—as certain— bill saying, ‘‘We want $7.2 billion as an we wanted to adopt them. All I am ask- as when you write a name in ink on a emergency for agriculture. And we ing is that we depoliticize a few of piece of paper with indelible ink; it will want to wipe out the new law which is these issues, or at least state the facts be there. And those two things that he only 18 months old called Freedom to correctly. We do not deserve blame for has used over and over—you need not Farm because we currently have an not including two programs, which, I think; they will pop into your mind— emergency’’—$7.2 billion. The Presi- repeat, are not paid for in this budget, Social Security and education. Right? dent asked for $2.3 billion. Now we get when as of today, 11 days into the fis- What we have seen, I say to my a communication from the President cal year, we don’t know how the Presi- friend from Alabama, we have seen the that says, ‘‘I asked you for $2.3 billion,

VerDate Mar 15 2010 00:42 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00022 Fmt 4624 Sfmt 0634 E:\1998SENATE\S10OC8.REC S10OC8 mmaher on DSKCGSP4G1 with SOCIALSECURITY October 10, 1998 CONGRESSIONAL RECORD — SENATE S12293 but essentially I want DASCHLE’s bill, NEDY as my seatmate these many Then he told my brother and me that too.’’ Now, believe it or not, we sent years, and before him Senator GORE— if Franklin Roosevelt could become him a bill with $4 billion. He vetoed it both truly outstanding men. President and couldn’t even walk, and said, ‘‘Now you’ve got to give me In order to deliver a speech such as I there was no reason why my brother what Senator DASCHLE’s bill has.’’ am about to deliver, Mr. President, I do and I, with strong minds and bodies, Mr. President, we have had the best not think there is anything wrong with couldn’t become President, too. I never people in this body working on agri- listing some of the defining moments took my eye off that goal until many, culture who put this emergency pack- in my life, because this speech is really many years later. age together. And believe me, the $4 more for the benefit of my children and In the following year, my father was billion package would make the Amer- grandchildren than it is for my col- president of the Arkansas Retail Hard- ican agriculture whole. There would be leagues or the people of America. ware Association. They gave our fam- no net loss of income to the agriculture First of all, I was blessed by my par- ily $300 to go to Los Angeles to the na- community. They know it. The experts ents. I remind my brother from time to tional convention. I can remember the know it. But because it is an election time that everybody was not so lucky big party at the Biltmore Hotel in Los year, and because of the turmoil that in choosing their parents as he and I Angeles in 1937. I had never stepped on exists that I have alluded to earlier in were. And that really is the reason that a carpet before in my life, and the Bilt- my conversation with the Senate here, I stand here as one of 1,843 men and more was filled with thick carpet. We the President now holds agriculture women ever to serve in the U.S. Sen- just loved it. We didn’t stay at the programs hostage. If we do not do it his ate. We were taught when we were chil- Biltmore. We were staying at the $2-a- way, we will close down the Depart- dren that when we died we were ‘‘going night cabin. to Franklin Roosevelt’’. And the rea- ment of Agriculture. Frankly, if we But the night of the big party, every- son we were taught that is because we body was in tuxedos and long dresses, did, it would be the President’s—it were very poor. Most people do not re- except my parents. And all the children would be on his shoulders, not ours. alize that the South, from 1865 until were dressed in tuxedos, too, even in But you know, it will get worked out. about the time Franklin Roosevelt be- that Depression year of 1937. But I can I just thought everybody ought to came President, was still living almost remember my brother and I had on know how these things work. as a conquered nation. National politi- long pants and white shirts, no tie, no Now, should it matter? We have cians paid very little attention to the coat. We were terribly embarrassed. worked for 20 years to get a balanced South. My father sensed that, and so the next budget and a balanced budget agree- In our household, we were poor dur- day he told us that he knew we were ment. The result has been nothing but ing the Great Depression. And I might embarrassed but he reminded us that good news for America. Almost every- say, the Great Depression is certainly the most important thing was that we body that even touched the issue lays one of the most important defining mo- were clean, our clothes were clean, our claim to having done it all, including ments of my life. But it was during the bodies were clean, and the kind of the President who claims the entire Great Depression that Franklin Roo- clothes you wore really were not all economic well-being of the country is sevelt began to provide all kinds of that important. He made it OK. because he is President. He can do things for people in the South that When I was 15 years old, I had a high that. That is fine. they had previously thought unthink- school English and literature teacher The truth of the matter is, there are able. named Miss Doll. Every member of the plenty—plenty—who deserve credit, in- We didn’t have indoor plumbing. We U.S. Senate has been influenced by a cluding the Federal Reserve, including didn’t have running water. We didn’t college professor or high school teach- Republicans in the Senate, Democrats have paved streets. We didn’t have er, maybe a preacher or somebody else. in the Senate, the same in the House. much of anything. The people in our She was my influence. But it really started happening, in community died of typhoid fever in the I remember my mother, who had a terms of restraining the budget, when summertime because the outhouse was tendency—not to denigrate my moth- both bodies became Republican. And just a few steps away from the well er—to not build our self-esteem. My fa- we can go back and trace that. That is from which we drew our drinking ther was working against that, trying when we fixed welfare to save money, water. Then Franklin Roosevelt began to teach us self-esteem, not ego, but es- that is when we changed Medicaid to to provide immunizations for children teem. save big dollars, and on and on. against smallpox and typhoid. It was We were reading Beowulf in English, Let’s go home, let’s wrap this up in free. We got those shots at school. a great piece of literature. We would the next few days, but let’s remember We had then what we called hobos or read a paragraph and discuss it. One the facts. And let’s not let this tramps; today we call them homeless time it came my time to read. I started superheavy, politically charged envi- people. My mother always saved a few reading, and all of a sudden—I read ronment color things such that we are scraps after breakfast knowing that about 2 pages and Miss Doll still hadn’t going to take that surplus we take so some tramp was going to knock on the stopped me—I looked up and she was much pride in, and find out in 3 or 4 back door and ask for food. That was standing there. She looked at me and months that there is only 25, 30, 40 per- back before welfare came into exist- she looked at the class and she said, cent of it left, even though we were ence. So we were very poor. ‘‘Doesn’t he read beautifully?’’ told, ‘‘You’re going to really use it up I remember when I was 12 years old ‘‘Doesn’t he have a nice voice?’’ And if you cut taxes.’’ What happened? We my father heard that Franklin Roo- she said, ‘‘And wouldn’t it be tragic if did not cut taxes, and it got used up. sevelt was coming to Arkansas. He was he didn’t use that talent.’’ At first I Interesting. a great believer in America and the po- thought she was making fun of me, but I yield the floor. litical system and public service. He she did more for my self-esteem in 10 Mr. BUMPERS addressed the Chair. wanted my brother and me to see seconds than anybody, except my fa- The PRESIDING OFFICER. The Franklin Roosevelt. So we drove over a ther, ever did. Some of my political de- Chair recognizes the Senator from Ar- gravel road 20 miles to Booneville, AR, tractors think she overdid it. kansas. and when the train on the Rock Island And then just out of high school, but f line pulled in, Franklin Roosevelt only after 6 months at the University came out on the back platform, obvi- of Arkansas, I went into the Marine FAREWELL SPEECH ously being held up by a couple of Se- Corps. World War II was raging. It was Mr. BUMPERS. Mr. President, I rise cret Service men. I tugged on my fa- a terrifying time. I fully expected to be this afternoon to speak, for what may ther’s arm and I said, ‘‘Dad, what’s killed in that war. The Marines were be the last time, on the floor of the wrong with him?’’ He said, ‘‘I will tell taking terrible casualties in the South Senate. It is a very bittersweet time you later.’’ On the way home, he told Pacific. Happily, I survived that. The for me, after 24 years, most of which us that Franklin Roosevelt had con- best part of it was when I got home have been spent at this very desk. I tracted polio when he was 37 years old, there was a caring, generous, compas- might say at this moment that I have he couldn’t walk, and he carried 12 sionate Federal Government, waiting been blessed by having Senator KEN- pounds of steel braces on his legs. with the GI bill.

VerDate Mar 15 2010 00:42 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00023 Fmt 4624 Sfmt 0634 E:\1998SENATE\S10OC8.REC S10OC8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S12294 CONGRESSIONAL RECORD — SENATE October 10, 1998 While my father would have stolen to that you have to confront, you think conceived by the mind of man? Or does make sure we had a good education, about this: Get the best advice you can it simply make me stronger politically my brother went to Harvard Law get on both sides of the issue, make up because it satisfies the political whims School and I went to the University of your mind which one is right, and then of the moment? Or does it simply keep Arkansas and later Northwestern Uni- you do it. That is all the people of the the political money supply flowing? versity Law School—both expensive State expect of you—to do what you Speaking of courageous votes, I voted schools my father could never afford. I think is right.’’ for the Panama Canal Treaties in 1978 studied political science and law. The So when I drove off the mansion and, in all fairness, in 1980, had I had a reason I did that is because my father grounds 4 years later, coming to the strong opponent, I would not be stand- wanted me to go into public service. He Senate, as I told my Democratic col- ing here right now. I lucked out. But I wanted me and my brother to be politi- leagues the other night, most of whom can tell you, people were absolutely cians. He may be the last man who ever know this, I came here with the full in- livid about my vote on the Panama lived who encouraged his sons to go tention of running for President. I had Canal Treaties—a fabricated political into politics. a very successful 4 years as Governor. I issue. I ask the American people and In my first year in law school, he and thought the world was my oyster and I my colleagues, who today has been in- my mother were killed in a car wreck. fully intended, as I say, to run. The convenienced by the Panama Canal They were tragically killed by a drunk- reason I didn’t run is because after I Treaties? Is this country any weaker? en driver. Neither of them had ever had had been here for a year, I realized that The truth is that it is stronger. Our re- a drink in their life. That is what made this whole apparatus was much more lationship with Panama is much it so bizarre. The big disappointment of complex than I thought it was. stronger. It was the Quemoy and Matsu my life was that my father didn’t live I told my children, if I had three lives issue of 1978. to see me Governor or Senator. to live, at the end of the last one, I Incidentally, Henry Bellmon of Okla- The next defining moment of my life would look back prior to 10 years at homa voted against the Panama Canal is when our children were born—first the end of it and realize how dumb I Treaties and made a minute-and-a-half Brent, then Bill and then Brooke. was. I was so smart when I graduated speech in doing it, while the rest of us The next defining moment was when from high school, I could hardly bear were pontificating for hours trying to I was practicing law in a little town of it. When I got out of law school, the justify our positions. He announced he 1,200 people and decided to run for Gov- problem was compounded. When I would not run again because, coming ernor. The day I filed, a poll was taken drove off the mansion grounds, I was from the conservative State of Okla- statewide. It was the last day of the fil- quite sure I was ready to be king of the homa, he knew he didn’t have a prayer ing deadline. I found that of the eight world. of being reelected, so hot was that Democrats in the primary, I had 1-per- The other night I told Senator SAR- issue. cent name recognition. It was probably BANES I really regret that I have not When I voted against Ronald Rea- the most foolhardy thing I had ever been as effective a legislator as I gan’s prayer in school amendment—the done in my life. But I was trying to should have been. He said, ‘‘Everybody only southern Senator to do so, my op- keep faith with my father, and I be- feels that way.’’ What I was really say- ponent tried to take advantage of it. lieve strongly in our country and I being, I suppose, is I wish I had known But the American people and the peo- lieve in public service. then what I know now. In my dying ple of my State—once you explained The next defining moment in my life breath I will look back and think what was involved to them, where the was shortly after I was elected Gov- about, really, how I was not as smart school prayers would be written or ernor I got an invitation to go to Kan- this Saturday afternoon as I thought I adopted by the school board and re- sas City to speak at a Truman Day din- was. That is what a living, learning ex- quired saying in the schools—came to ner. I told them I couldn’t go, the legis- perience is. understand the perils of the amend- lature was in session. I just assumed So I chose not to run for President. ment. I always tell youngsters, and col- those legislators would screw the dome By the time I felt that I was qualified lege groups particularly, when you off the capital if I left town. They came to be President, I decided that it de- think about that, you tell me which back and said, ‘‘If you will agree to do manded a price that I was not willing country that has an official state reli- this, we will let you spend an hour with to pay. Not to be purely apocalyptic gion you want to live in. President and Mrs. Truman,’’ and that about our future, because I am not, I Mr. President, one of the greatest was more than I could resist. So I went must say, in all candor, partisanship moments of my life was when I was and spent that hour with President has reached a point in this country, Governor and a man came into my of- Truman and he asked me how I liked and the demands for political money fice wanting me to talk to the highway being Governor. I said, ‘‘I don’t like it, have become so great—two very insid- department about a late penalty they it’s a real pressure cooker. I am just a ious things—that good men and women were going to assess him for being 60 country lawyer. This is all new to me are opting out of public service, and days late in completing a highway job. and the press is driving me crazy.’’ not to enter public service. Money is To shorten the story, I said, ‘‘If I do I was telling him what a terrible job corrupting the political process and it this for you, how do I explain to the being Governor of Arkansas was, and it threatens our very democracy. next guy who walks in the door why I suddenly dawned on me I was talking Since I announced that I would not can’t do it for him? I don’t want to to a man who had to make the decision run last year, I confess to you, Mr. start down that road.’’ After a long to drop the atomic bomb that ended President and colleagues, that I have conversation, when he started to walk World War II. And so I shut up. And voted in ways that I would not have if out after I told him I could not, under then he told me, as I left, ‘‘Son, while I were running. I think of the few times any circumstances, comply with the re- you are looking at the ceiling every when I would have had to worry about quest, he said, ‘‘Governor, that’s the night in the Governor’s mansion, won- what kind of a 30-second spot that vote reason I voted for you.’’ dering what you are going to do, re- would generate. This institution is a great place. It is member one thing: The people elected I have cast my share of courageous supposed to be the deliberative body. you to do what you think is right and votes since I have been here, as Harry The Founding Fathers intended the that is all they expect out of you. They Truman admonished me to do. I have lower House, the House of Representa- have busy lives. So, remember, always always tried to use simple tests as to tives, to be the House of the people. tell people the truth; they can handle how I voted; How would my children They expected this place to be the de- it.’’ and grandchildren judge me? Did it liberative body. It is a curious thing— That didn’t sound like very profound make me stronger or the Nation and the minority leader here knows advice to me at the time. But indeed it stronger? Did it do any irreversible this—every amendment, every bill that was. I have thought about it every day damage to the environment? Is it fair comes up, we immediately start trying of my life since then. to the less fortunate among us? Does it to figure out, how stringently can we Secondly, he said, ‘‘When you are de- comport with the thrust of our Con- limit the debate on this issue? There bating in your own mind the issues stitution, the greatest document ever are times when that is fully justified,

VerDate Mar 15 2010 00:42 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00024 Fmt 4624 Sfmt 0634 E:\1998SENATE\S10OC8.REC S10OC8 mmaher on DSKCGSP4G1 with SOCIALSECURITY October 10, 1998 CONGRESSIONAL RECORD — SENATE S12295 and there are times when only if you diseases in this country. She went to sion. My father said it long before fully air something do the Senate see President Carter when he first Bobby Kennedy did. It is a noble call- Members really come here well enough came to power. She said, ‘‘I tell you ing. And the minute it becomes what informed to vote on it. something you can do that will have a so many people think it is, who do you We are still the oldest democracy on lasting effect on the health of this Na- think suffers? All of us do. So I want to Earth. We are still living under the old- tion, and it will help you a lot when inspire this oncoming generation, as est Constitution on Earth, and without you run again.’’ He put Joe Califano at my father did me, to get involved in men and women of goodwill being will- her disposal. And today she and the political process and public service. ing to offer themselves for service, Rosalynn Carter have an organization You have a duty and a responsibility. there is absolutely no assurance that called ‘‘Every Child By Two.’’ She is So, to the U.S. Senate, to all of my that will always be. Thomas Jefferson still going at it—peace and children. colleagues, God bless and Godspeed. said, ‘‘The price of liberty is eternal I have three beautiful children, and I yield the floor. vigilance.’’ He was not just talking six beautiful, healthy grandchildren. I Mr. LAUTENBERG addressed the about military vigilance. We are still have been blessed with exceptional Chair. woefully inadequate in this country in staff members, most of whom are more The PRESIDING OFFICER (Mr. the field of education. If I were the than staff members. They are very THOMAS). The Senator from New Jer- President of the United States and I good friends. I have been blessed with sey. were looking at a $70 billion surplus, I the support of the people of my State f would make sure the first thing we did in winning almost every election by 60 SENATOR DALE BUMPERS was to pass a bill that said no child in percent or more of the vote. I was this Nation shall be deprived of a col- much more liberal than my constitu- Mr. LAUTENBERG. Mr. President, lege education for lack of money. Look ents. I like to believe that they re- this is one of those moments that one at all the statistics where we rank spected me because they knew what I feels a bit overwhelmed—to follow among the developed nations in edu- stood for is what I believed instead of DALE BUMPERS in a discourse that he cation. And look at the state of health what was politically expedient at any gives here on the floor. This is a task care. It is good for those who can afford given time. But, for whatever reason, I that I never liked—to get on the floor it. And 45 million who have no health will always be grateful to them. after DALE BUMPERS moved us with his insurance and no health care do the Our State does not deserve to have oratory and described his feelings for best they can. been torn apart for the past 6 years. I this institution and our responsibility. Mr. President, I have been richly know so many innocent people who But there is another reason that I am blessed in my life, as I said, mostly by have been destroyed, financially and really feeling uneasy; that is, the pros- devoted parents, and good Methodist mentally, by a criminal justice system pect that this place will be without Sunday school teaching. My mother gone awry. You would have to go back DALE’S voice, without his wit, his wanted me to be a Methodist preacher to the Salem witchcraft trials to find humor, but more importantly, his com- and my father wanted me to be a poli- anything comparable. mitment to the people of this country. tician. Think about growing up with I do not, nor does any Senator, con- I want you to know, DALE, what a that pressure. I am personally blessed done the President’s conduct. Call it sacrifice I make today. I decided to with a great family. If I died tomorrow, whatever you want—reprehensible, in- stay here rather than to go to a budget the people of Arkansas would take note defensible, unconscionable. Call it any- conference down the hall trying to of it, and there would be headlines in thing you want. But most of us take wrestle with the issues of the day. So I all of the papers in the State. But if pride in President Clinton’s Presi- sacrificed that time just so I could Betty died tomorrow the people of our dency. And the American people are stand on this floor to hear your ter- State would grieve. She has founded still saying they like him. But com- minal speech. That is devotion and two organizations. pletely aside from that, as I say, I weep friendship, I assume. When Ronald Reagan announced to sometimes for the unfair treatment to I have to say that one could see the this country that we might just fire my State, and so many innocent people position that DALE has earned over the one across the Soviet Union’s bow to in it. years, because people were as generous get their attention, he terrified her. I have been blessed by unbelievable and as warm and as friendly from the She and a group of congressional wives friendships of colleagues. Those friend- other side of the aisle. That doesn’t met around my kitchen table for about ships will probably wane. It is almost mean that we always agree, and it 6 months. Finally, I came home one impossible to maintain a relationship doesn’t mean that we always share a night, and she said, ‘‘We are forming an with a colleague once you leave here. similar direction for our country. organization. And we feel so strongly That is really tragic. But I am real- But DALE has succeeded in winning about it that we are going to put istic. And I know that is what it will friends, in making sure that we never ‘peace’ in the name. We are going to be. I know we will have a difficult time forgot about who it is we are here to call it Peace Links’’. Ultimately, she having the same kind of relationship, if serve. We could make lots of jokes, but had almost 250 congressional wives any at all. But I want them to know one never wants to compete with conscripted into that organization. that I value their friendship. I value DALE’s humor. I think about the only I told her ‘‘you are going to get your my service with them. I have served close match was with DALE BUMPERS husband beat.’’ We are from a conserv- with some truly great men and women. and Alan Simpson. That was a good ative State. People in Arkansas believe And, as Senator BYRD likes to say, only team. The jokes were always better in a strong defense. People across this 1,843 men and women have ever been so when we were off the floor somehow. Nation believe in a strong defense. She privileged to serve in this body. But beyond the wit, beyond the humor, said, ‘‘You men are going to get my I am already nostalgic about this beyond the jokes was always this in- children killed.’’ Chamber—24 years in this Chamber, credible pursuit of what is right for our She had already spent all of her pub- the Cloakroom, the hearing rooms, the country and what is right for our peo- lic life, from the time I was Governor Capitol itself. For 24 years, the first 20 ple. until this day trying to immunize all of of which I went home almost every I have submitted a written statement the children in this country. And I am weekend and came back on Sunday without the kind of eloquence I wish I not going to go through all of the suc- night, I never failed, as we flew by the could have borrowed from DALE. He cesses that she has had, which have Washington Monument, to get goose was right, he was accurate when he been staggering. bumps. And I hope I never do. So, col- said his impression of his IQ was over- The Western Hemisphere is free of leagues, I thank you for being my blown. All of us agree with that. polio. Africa will be free of polio by the friend. To the people of my State, I We know DALE well. We love him. We year 2002. Asia will be free of polio by thank you for allowing me to serve love to tease him a little bit. There the year 2004. And measles is next. here. were very few times on this floor when I tell you, she deserves a lot of credit I want to teach, in order to teach DALE could not get attention from oth- for the virtual elimination of childhood children that politics is a noble profes- ers, and it wasn’t just the volume; it

VerDate Mar 15 2010 00:42 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00025 Fmt 4624 Sfmt 0634 E:\1998SENATE\S10OC8.REC S10OC8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S12296 CONGRESSIONAL RECORD — SENATE October 10, 1998 was the substance of his mission that it then. He worked. He tried to survive for Arkansas, just a model person all we all paid attention to. They kid him with his family during the lean and the way around. On the way home, about stretching the cord that holds tough years, ashamed that he had to DALE commented to Betty about what our microphones, but everybody was resort to a job with the WPA. I will a wonderful introduction that was. anxious to hear what DALE had to say never forget how discouraged he was They got home; Betty brought the dic- or read what was in the RECORD. when he came home, but, he said, he tionary to DALE, sitting now in his own So I just wanted to have a chance to needed the job; he had to feed his fam- study, and read to him the word say how pleased I am for the oppor- ily. My father died at the age of 43, ‘‘model,’’ as it is defined in Webster’s. tunity to be here at the last speech after a year of illness with cancer. I There it is defined as ‘‘a small replica Senator DALE BUMPERS was going to had already enlisted in the Army. He of the real thing.’’ make in this Chamber. It has been an disintegrated in front of our eyes, leav- Senator BUMPERS is a model in the honor to serve with DALE as well as to ing not only an empty house but an truest sense of the word. In many reserve with people such as JOHN GLENN. empty wallet. My mother had to work. spects I call him my model, for how he JOHN GLENN is one of the finest people I had to send home my allotment to speaks, for what he stands for, for how who, it is fair to say, has ever left this help pay the bills that were accumu- he interacts with his colleagues, for Earth. But we are going to see JOHN lated during that period of time. how he represents his State, for all of GLENN at the end of the month and wit- But we both got here because we the courageous positions he has taken. ness his heroic and incredible mission were encouraged by things that oc- I don’t know how you do better than into the sky. JOHN GLENN was with me curred in our families, messages that that. I don’t know who it was who once when I was sworn into the Senate. We were sent by our parents, mine perhaps said, ‘‘If we are to see farther into the happened to be in Colorado on a vaca- less articulate than the one I heard future, we must stand on the shoulders tion just 16 years ago, and he stood DALE BUMPERS describe. But we are of giants.’’ DALE BUMPERS is a giant. while I found a magistrate to swear me here because they were able to give us And it is upon his shoulders that we in because there was an opportunity that opportunity and we are here behave stood many, many, many times to based on the resignation of the then- cause we want to serve, to do some- see into the future, as I have seen. He appointed Senator. thing, to give something back as a re- persuades us, he cajoles us, he humors At the same time we are saying good- sult of having that opportunity. us, he always enlightens us. bye to WENDELL FORD. WENDELL is To Senator DALE BUMPERS and the As I heard Senator DOMENICI, the sen- someone who you could fight with, get others, we say farewell. This place will ior Senator from New Mexico, say ear- your blood pressure up, more often be a lesser place without your pres- lier: ‘‘He does it in a way that is not in than not you would lose the argument ence, but because of your presence this fashion perhaps, not in keeping with and lose the debate. But WENDELL place will continue to gain strength what the normal rules of the body FORD got things done. And I want to and to do what we have to do for the are.’’ The normal rules are, you are tell you, if I had to be served by a Sen- future. Rest assured that America will supposed to stay at your desk. Not Sen- ator, I would want that Senator to be strong. It will be different forces and ator BUMPERS. Senator BUMPERS has have the same concern about my State different faces, but the work will con- the longest cord in Senate history. I and my well-being and my family and tinue to be done here. joked the other night, when we finally my future as did WENDELL FORD. He Mr. President, I yield the floor. see Senator BUMPERS depart, we are never let an opportunity go by without The PRESIDING OFFICER. If the going to cut up his cord and give 10 feet defending his people and the State of Senator will suspend for just a minute, to every Senator and save 10 more for Kentucky. Although we disagreed on I am going to stretch the prerogatives the next. He goes up and down that lots of occasions, I always walked away of the Chair to say I came over to talk aisle. with a high degree of affection and re- about Senator BUMPERS, whom I have Since, as we are prone to do in this spect for WENDELL FORD. gotten to know recently. We worked on body, we name things after our col- So when I listen to DALE BUMPERS park bills. I know no one more com- leagues—I happen to be fortunate summarize his life, I think about where mitted nor more easy to work with and enough to reside in the Byrd suite—I we are, because too often the argu- who keeps his word any better. am going to start referring to that as ments here overtake the purpose of our I am sorry to say that, but I needed the Bumpers corridor. And I am point- functioning. But DALE BUMPERS, Sen- to. ing, for the record, to my left. For any- ator DALE BUMPERS reminds us that The Senator from South Dakota. body who has served with DALE, I don’t the mission is almost a holy one and Mr. DASCHLE. Mr. President, I don’t have to point at all. We all know what that we have to step back and take a think anyone could say it any better the Bumpers corridor is. deep breath and get down to the busi- than that, and I appreciate the Pre- So it is a bittersweet moment. We ness of the American people. siding Officer’s comments. They are recognize the time comes for all of us I wish to thank the Democratic lead- certainly well spoken and very appro- to depart, to say goodbye. As others er for giving me these few minutes. I priate. I join my colleague from New have noted, and I am sure more will also wanted to take an opportunity to Jersey in expressing feelings that are note before the end of the session, we say so long to Senator DAN COATS. DAN very hard to express in public. Senator say goodbye not only to our dear, won- COATS was a formidable opponent for BUMPERS and I have some things in derful friend DALE, but to his wife me when New Jersey persisted in send- common. I am not as eloquent as he is, Betty as well. There is no question, as ing its trash out to Indiana where it but I feel at times such as this prob- we all know, he over-married. There is was welcomed by the communities that ably as emotional. no question who the real force in the had the certified landfills and all that. I love his sense of humor. I have used family is. There is no question who the But DAN COATS didn’t object when New more Bumpers material in my public visionary and the giant is. As Senator Jersey sent its All-American football career than anybody else in this Cham- Bumpers so capably noted, there is no players to Notre Dame or to the Uni- ber. I don’t think this is his story, but question who is beloved in the State of versity of Indiana. But serving with I might as well start with it. There was Arkansas. We will miss Betty Bumpers DAN also has been a privilege. a time when Senator BUMPERS was at a and her vision and her humor and all of Mr. President, I wrap up just by say- dinner. We all go to these banquets her contributions. ing that DALE BUMPERS, if you listened over and over and over. We all drag our I asked my staff to put some to his words, arrived here encouraged wives along. And they are so good to thoughts together and I really want to by a father who saw the value of Gov- come with us so often. Betty was at share some of them because I think, for ernment service, and it is an inter- this particular dinner with Senator the record and for our colleagues and esting and touching explanation of BUMPERS, sitting, as she always does, for those who may be watching, it is what it is that provided his motiva- at his side supportive and smiling. important to remember who it was we tion. My father also motivated me to The emcee introduced Senator BUMP- just have heard from. engage in whatever enterprise I could ERS as one who is a model legislator, a We heard from a Marine. We heard to serve the public. But he didn’t know model politician, a model spokesperson from a man who volunteered to serve

VerDate Mar 15 2010 00:42 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00026 Fmt 4624 Sfmt 0634 E:\1998SENATE\S10OC8.REC S10OC8 mmaher on DSKCGSP4G1 with SOCIALSECURITY October 10, 1998 CONGRESSIONAL RECORD — SENATE S12297 during World War II. We heard from a vious attack on the Constitution . . . matter of fact, article I of the Con- person who grew up in a small town, [this] erosion of the only document stitution says: Charleston, AR—I don’t have a clue that stands between the people and All legislative Powers herein granted shall where it is—where he worked as a tyranny.’’ be vested in a Congress of the United smalltown lawyer and taught Sunday This past July, shortly before States.... school. He may not have been a Meth- launching the last of his annual at- Not in the executive branch, in the odist preacher, but he was a Sunday tempts to kill the international space Congress, in the people’s body. school teacher. He told us about his de- station, Senator BUMPERS told a re- It also says under article I, section 9: cision, in 1970, to run for Governor. porter that he expected to lose again No money shall be drawn from the Treas- What he did not say is that he was one but he would try anyway because he ury, but in Consequence of Appropriations of eight candidates vying for the Demo- thought it was the right thing to do. made by law. cratic nomination. He did indicate that Then he added, ‘‘I probably lost as Again, made by Congress. I think polls taken at the start of the race many battles as anybody who ever some people in the administration gave him a 1-percent approval rating. served in the U.S. Senate.’’ think that they are Congress now, that I want to tell my friend as he pre- That is half of what it is right now. He they can write appropriations bills. pares to end his Senate career, if you sold a herd of Angus cattle for $95,000 That is not constitutional. The Presi- did in fact lose more battles than to finance his TV ad campaign. You dent has his constitutional authority, someone else who may have served couldn’t get that much for Angus cat- and if he wants to veto appropriations here, it is only because you chose tle today. bills, he has a right to do so. Let him He finished the primary in second tougher and more important battles. exercise that right. He doesn’t have a place, behind someone whose name we Even more than the outcome of your right to write appropriations bills. all know, Orville Faubus, whose race- battles, you have earned your place in For some reason, some people have baiting brand of politics still domi- history for the dignity and the courage gotten this idea that the administra- nated much of Arkansas Democratic and the eloquence with which you have tion is an equal partner. They are an politics. He beat Orville Faubus in a waged those battles. equal branch of Government, but we runoff and went on to beat the incum- I remember, having just arrived—I have different functions in Govern- bent Republican, Governor Winthrop was elected in 1986, sworn in in 1987—by ment. The executive branch can submit Rockefeller, in a general election by a the end of the year, in 1987, I had al- a budget, they can confer, they can margin of 2 to 1. ready decided who my man for Presi- consult, but Congress passes the appro- After being elected Governor, DALE dent was. I remember the conversation priations bills, and we need to do so. BUMPERS was asked by Tom Wicker, as if it took place yesterday. I was re- Now we have the President making then a reporter for the New York minded again, as our colleague spoke ever-extending demands: ‘‘Well, I’m Times, to explain how a man would on the Senate floor, about his ambi- not going to sign that bill if you don’t come from obscurity to beat two living tion. That was the ambition for many spend so much money.’’ Fine. Very legends. He answered simply, ‘‘I tried of us as well. He would have been the good. He vetoed the Agriculture De- to appeal to the best in people in my same kind of outstanding President partment appropriations bill because campaign.’’ And that is what he has that he has been the outstanding Gov- he said we didn’t spend enough money done his entire public career; he has ernor and Senator we know today. and didn’t spend enough money under appealed to the best of people. That was not to be. But in the eyes of the guise of emergency agriculture as- As Governor, he worked aggressively all of us, DALE BUMPERS will always sistance. and successfully to modernize the stand as the giant we knew, as the re- State government. He put a tremen- spected legislator we trust, and as the He requested $2.3 billion for emer- dous emphasis on improving education friend we love. gency assistance. We appropriated $4.2 and expanding health services. Then, in I yield the floor. billion, and he vetoed it and said, ‘‘We 1973, with 1 year remaining in his term, Mr. NICKLES addressed the Chair. want to spend $7 billion.’’ In a period of he made the decision to challenge an- The PRESIDING OFFICER. The Sen- a couple of weeks, he more than dou- other living legend, William J. Ful- ator from Oklahoma. bled his demands. He has a right to bright, for the Democratic nomination Mr. NICKLES. Mr. President, I ask veto the bill; fine. He doesn’t have a for the U.S. Senate. Senator Fulbright unanimous consent to speak as in right to write the bill. was, at that time, a 30-year incumbent morning business. Many people in his administration, Senator. It probably did not come as The PRESIDING OFFICER. Without maybe the President himself, seem to any surprise to people in Arkansas, but objection, it is so ordered. think, ‘‘We are going to write the bill; it must have to the Nation, because Mr. NICKLES. Mr. President, I com- we’re just not going to sign it; if they when all the votes were counted, DALE pliment my colleagues on their fine re- don’t give us more money, we are going won that race too, 2 to 1. marks about our colleague, Senator to shut down the Government.’’ Fine, In the Senate, there is not a col- BUMPERS. I already made a speech com- he can shut down the Government. league in this Chamber who has not plimenting him for his service to the I stated to the press, and I will state been affected by his eloquence and his Senate. I noticed my speech had sev- it again, this Congress will pass as reasoning on everything from arms eral things in common with the speech many continuing resolutions as nec- control to the environment. He has of Senator DASCHLE. I alluded to the essary, and it may last all year. We been a champion for rural America. He fact of Senator BUMPERS’ sense of may be operating under continuing res- has been a consistent advocate for fis- humor, which all of us have enjoyed, olutions all year long. I personally cal discipline. In the 1980s he voted Democrats and Republicans, and I also don’t have any desire, any intention of against the tax cuts, arguing that they referred to the fact that he had the funding all of the Presidential requests would explode the Federal deficit. In longest microphone cord in the Senate. that are coming down the pike, for the 1990s he took the tough votes need- He has used it extensively, and we have which, all of a sudden, he is making deed to eliminate those deficits. all enjoyed that as well. mands. I hope that our colleagues will He has been a tireless defender of the f support me in that effort. U.S. Constitution and the separation of I am not in that big a hurry to get powers it guarantees. He did not men- BUDGET NEGOTIATIONS out of town. I heard the President al- tion this, but he should have. In 1982 he Mr. NICKLES. Mr. President, I want lude to that in a very partisan state- was the only Senator from the Deep to make several comments concerning ment that he made yesterday with South to vote against a proposal strip- some of the negotiations that are going Members of Congress: ‘‘We need to keep ping the Federal courts of their right forward. I remind my colleagues in the Congress in.’’ Mr. President, we will to order school busing. He said at the Congress that the Constitution gives stay in. We will pass resolutions con- time, while he opposed the use of bus- the Congress, not the President, the tinuing Government operations at 1998 ing to achieve racial balance, he op- authority and the responsibility to ap- levels, this year’s levels. We will pass posed even more ‘‘this sinister and de- propriate money, to pass bills. As a that as long as necessary.

VerDate Mar 15 2010 00:42 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00027 Fmt 4624 Sfmt 0634 E:\1998SENATE\S10OC8.REC S10OC8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S12298 CONGRESSIONAL RECORD — SENATE October 10, 1998 We passed one for a week. We passed Sure enough, they had a bunch of col- istration does not trust local school one for 3 days. We may have to pass an- leagues go over in some show of sup- boards, local teachers, parents, Gov- other one. We may have to pass it for port on the last day of the session. ernors to be making that decision. the balance of this year, maybe into Bingo. He wants to mandate it from Wash- next year, whatever is necessary. But I If they wanted to pass a Patients’ ington, DC. This is a new demand. do not intend on being held hostage. Bill of Rights, they should have said Guess what? We have had votes on The President said, ‘‘Well, give me ‘‘Yea, we agree, we will pass them, find these issues. He did not win. The Presi- more money; I want to spend the sur- out where the votes are.’’ The Demo- dent’s program did not win. We had plus, whether it be for education, crats would never agree to a unani- two or three votes earlier this year. He whether it be for Head Start.’’ He has a mous consent request to pass Patients’ did not win on the school building pro- whole laundry list. He calls them in- Bill of Rights. gram; did not win on the 100,000 new vestments, but, frankly, they are a lot They are the ones who killed the bill. teachers. But yet this is a new demand, of new social spending. I don’t have When the President said, ‘‘. . . we saw that he is going to try to get it, he is any desire to spend that money. partisanship defeat progress . . .’’ he not going to sign the bill unless we I am quite happy and willing to stay forgot to say the Democrats wouldn’t fund it. here all year, all year next year, if nec- agree to a process to pass the bill, I am going to tell you right now, at essary, but I don’t want us to succumb which we offered in June and several least as far as this Senator is con- to his demands. I have no intention of times in July. He forgot to mention cerned—and maybe I do not control the succumbing to his demands. I am, that. It kind of bothers me because, conferences—but I do not have any in- frankly, bothered by the fact that at again, he says, ‘‘We want bipartisan- tention to ever fund those programs. I this stage in time, the President is ship,’’ and he makes a partisan state- think decisions on hiring teachers and really ratcheting up the partisan rhet- ment on a national radio address. building school buildings should be oric. Frankly, that is not the right I have also heard the President state, made in the local school districts, by thing to do if he wants to work to- ‘‘We can’t have a tax cut because we’re the local school boards, by the parent/ gether. going to reserve every dime of the sur- teacher associations, by the Gov- It is interesting, the President made plus to protect Social Security.’’ All ernors—not by those of us in Congress a very nice bipartisan speech saying, the while—he knows it and we know or, frankly, by some bureaucrat in the ‘‘Yes, I compliment the Congress, they it—he has his staff members running Department of Education. worked together and we passed the around the Congress saying, ‘‘We want So maybe we will be here for a long International Religious Freedom Act.’’ more money and we want to declare ev- time. Again, the President has the I was involved with that. We worked erything an emergency so it won’t right to veto the bill. Fine. Let him with the administration. We did do bi- count on the budget, so it won’t be part veto the bill. Maybe we will be oper- partisan work. It took bipartisan work. of the budget agreement’’ that he ating on continuing resolutions for the But you don’t get that kind of coopera- adopted and agreed to in 1997. ‘‘We rest of the year. If that is what hap- tion on the budget when you have the want more money.’’ pens, that is what happens. I will, President making all kinds of partisan The totals are right in the $18 billion, again, repeat that we will pass enough statements. I will give you an example. $20 billion-plus range. ‘‘We want more continuing resolutions as necessary to In his radio address given to the Na- money for a lot of things and, oh, yes, keep Government open. tion today, the President said: it is all off budget; it doesn’t count; it’s Maybe we will have to pass one every This week, unfortunately, we saw partisan- an emergency.’’ What a great game. day. Maybe we will have to pass one ship defeat progress, as 51 Republican Sen- Again, I remind my colleagues that every week. Maybe we will have to pass ators joined together to kill the HMO Pa- the Congress is responsible for passing one every month. But we are not going tients’ Bill of Rights. appropriations bills, and we need to to shut Government down. We are not One, I just disagree with that. The pass them. If he vetoes them, fine, he going to demand anything. We will majority of Republican Senators—as a can shut down the Government. We can pass the continuing resolutions to keep matter of fact, unanimous Republican pass continuing resolutions, and we Government operating at fiscal year Senators—said, ‘‘We are willing to pass can do that as much as necessary. 1998 levels as long as necessary. We will a Patients’ Bill of Rights,’’ not defeat The President in his weekly radio ad- stay here. We are happy to stay next one. ‘‘We are willing to pass one.’’ dress said: week. We are happy to stay the fol- We made that offer to our colleagues Our Nation needs 100,000 new, highly quali- lowing week. We are happy to stay all on the Democratic side. We made it fied teachers to reduce class size in early year, if that is necessary. But I hope, several times in June and several times grades. and I believe, we are not going to suc- in July. We said we were willing to He said, ‘‘We need more teachers, cumb to this last-minute politicization pass this bill. As a matter of fact, we more buildings.’’ of, ‘‘We want more money. Let’s spend wanted to pass it before the August The President said: the surplus.’’ break. We made unanimous consent re- So again today, I call on Congress to help I have even heard, in the President’s quests and said, ‘‘We will pass either communities build or modernize 5,000 schools radio or in his speech yesterday— your bill or our bill. You have the best with targeted tax credits. ‘‘We’ve got the first balanced budget in bill that you can put together. You Mr. President, I want more money 29 years. Our economy is prosperous. worked on yours for months; we for education. I want a lot better edu- This budget is purely a simple test of worked on our bill for months. Let’s cation, but I really don’t want the whether or not, after 9 months of doing vote, let’s pass it, let’s go to conference President of the United States or some nothing, we’re going to do the right with the House.’’ bureaucrat in the Department of Edu- thing about our children’s future.’’ But, no, the Democrats wouldn’t cation deciding which school in Okla- ‘‘We want more money’’ is basically agree with it. The Democrats kept us homa gets a new teacher or which what he is saying. I also heard him say from passing a Patients’ Bill of Rights. building in Oklahoma is going to be re- we should save the surplus for Social You don’t pass a bill this complicated built or which classroom is going to be Security. Now he is talking about new the last day of the session. Senator modernized or updated. investments. In his speech yesterday, DASCHLE offered some amendment and Why should we have that decision he said we need new investments for said, ‘‘Oh, let’s run this through.’’ That made in Washington, DC? Why should everything I have mentioned, but he was nothing but for show. Federal bureaucrats be involved? also runs through a whole list of other Yet we even find an e-mail from the Maybe our schools in Oklahoma need new spending, social spending, that he House Democrat events coordinator more teachers or maybe they need new is trying to crowd through in the last that said, ‘‘Hey, let’s put on a real buildings or maybe they need new com- minute. show; let’s have everybody get to- puters. Why don’t we trust Oklaho- I do not have any intentions of suc- gether; Senator DASCHLE can orches- mans to make that decision? Why don’t cumbing to these demands. I hope my trate this; we will have a bunch of col- we trust the parents and the teachers colleagues will not. I just say this, leagues.’’ and the school boards? No, this admin- with all respect, how the President

VerDate Mar 15 2010 00:42 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00028 Fmt 4624 Sfmt 0634 E:\1998SENATE\S10OC8.REC S10OC8 mmaher on DSKCGSP4G1 with SOCIALSECURITY October 10, 1998 CONGRESSIONAL RECORD — SENATE S12299 could demagog that we cannot have a TRIBUTE TO UNITED STATES national leader in protecting the tax cut because of the Social Security SENATOR DALE BUMPERS health of children. In fact, along with surplus and then in the next minute, Mr. BYRD. Mr. President, in the bus- his wife, Betty, Senator BUMPERS has propose to spend the so-called surplus tling commotion of the ending days of long promoted childhood immuniza- on all these investments is beyond me. the 105th Congress, members are pre- tions, known safeguards in protecting I just have no intention whatsoever of occupied with efforts to enact sought the health of millions of children. going along with that. after objectives important to their con- As the ranking Democrat on the Sen- I think we should abide by the budg- stituents. We are busy tying up loose ate Appropriations Subcommittee on et. I do not think we should squander ends, putting the finishing touches on Agriculture, formerly the Chairman, the surplus with new Federal spending. projects, and looking forward to going DALE BUMPERS has represented the Some of us were interested in tax cuts home to our constituents and to a rural heart of America. He has fought because we knew that if we did not break in the hectic schedule of the for policies to help rural families, in- allow taxpayers to keep their money, United States Senate. Regrettably, as cluding securing funding for basic in- that Congress and/or the administra- this session of Congress adjourns, we frastructure projects that provide tion would say, ‘‘Well, let’s have more are also faced with the difficult task of water and sewer facilities to small spending.’’ There is a real propensity saying goodbye to colleagues who have towns throughout the nation. I person- around the place to spend money. chosen to follow a new path in life. ally wish to thank Senator BUMPERS I just hope that our colleagues will As I reflect on my years in Congress for being a leading advocate for fund- resist that temptation. I hope that and on my association with its many ing on these vital projects, and I share they will resist these new overtures by members and their various personal- his concern for the millions of Ameri- the administration that seems to think ities, their goals and, yes, sometimes, cans who do not have access to a clean, they should be an equal body with Con- their eccentricities, I am reminded of ample supply of drinking water. gress in writing appropriations bills. I some very important milestones in his- Senator BUMPERS has further made a think we should have legitimate nego- tory made possible by these fine Amer- significant mark on efforts to protect tiations but, frankly, that does not icans. I am reminded of my good for- family farmers. In particular, we owe make people equal partners. tune to have been associated with men our gratitude to DALE BUMPERS for his We have equal branches of Govern- and women representing the American efforts to initiate programs to help ment with divisions of powers. Again, people from all walks of life and from young Americans become this nation’s the Constitution says that Congress all corners of the United States. next generation of family farmers, a shall write the laws and Congress shall In my reflections, I have thanked my dwindling breed at risk of extinction. appropriate the money. We need to get Creator for allowing me to serve my In honor of his service to rural Amer- on with our business and do that, send country with such fine men and ica, I am proud that this Congress, in the appropriations bills to the Presi- women, and I am, indeed, sorrowful at the Fiscal Year 1999 Agriculture Appro- dent. If he vetoes them, fine, then let’s the upcoming loss of some of the finest priations Bill, is formally paying trib- pass a continuing resolution to keep men I have ever known. ute to his work by designating an Agri- Government open. I pay tribute today to an exceptional cultural Research Service facility as United States Senator, a man with the Dale BUMPERS National Rice Re- f whom it has been my honor to serve search Center. This action follows the TRIBUTE TO SENATOR WENDELL and to have been associated with—a recognition by the people of Arkansas FORD man of unusual conviction, passion, in dedicating the Dale Bumpers College and resolve. He has been called the last of Agricultural, Food, and Life Mr. NICKLES. Mr. President, I have Southern liberal, and he is proud of it. Sciences at the University of Arkansas. given accolades to a couple of my col- He often quotes from ‘‘To Kill a Mock- Senator BUMPERS’ noteworthy record leagues for their service in the Senate, ing Bird.’’ He is THE commanding foe also extends to many other constitu- including Senator BUMPERS. I see Sen- against the space station. encies. Through his ranking member- ator FORD is on the floor. I have had The above discourse clearly ref- ship on the Senate Small Business the pleasure of serving with Senator erences the actions of only one man— Committee, he has fought to help self- FORD for 18 years on the Energy Com- Senator DALE BUMPERS, Democrat employed people obtain health care. He mittee. We worked together on a lot of from Arkansas. He is the United States has also been an advocate of funding things. And, in my opinion, some of the Senator responsible for ‘‘right-turn-on- for rural hospitals; for Medicaid; for most significant legislation that passed red,’’ his first legislative victory and the Women, Infants and Children feed- Congress, in my tenure, we have one for which, I am told, he received ing program. The list goes on and on. worked together on. devilish teasing from a colleague who DALE BUMPERS’ legislative skills and One was the Natural Gas Deregula- warned that ‘‘many people might want record are clear. He is a modern hero to tion Act that President Bush signed to drive straight!’’ the underdog. But there is yet another after about 6 years of negotiations and I will miss my friend, who is retiring side of the Senator from Arkansas that hard work, but probably one of the following twenty-four years of service. deserves recognition—the DALE BUMP- most difficult pieces of legislation that He leaves a legacy that has made a dif- ERS who is a husband, a father, and a we have passed. ference, not only to the people of Ar- grandfather. Married to Betty Lou And if you go back on the history of kansas, but to all Americans. His tire- Flanagen, DALE’s ‘‘Secretary of natural gas regulation and deregula- less efforts to end federal policies that Peace,’’ for 49 years, he is devoted to tion, it was a very, very difficult task. he believes give away resources that his marriage and his family. DALE and It was a pleasure for me to work with belong to the taxpayer will long be re- Betty have three children and six Senator FORD in that respect. We membered by certain mining and grandchildren, and DALE often speaks worked together on other issues as ranching interests out West. And more affectionately of his family and of well. than a few NASA space station con- their influence on his consideration of I compliment him for his 24 years of tractors will continue to run when legislative issues. Yes, Senator DALE service in the Senate. Anyone that they hear his name! Contractors who BUMPERS of Arkansas has a personal spends almost a quarter of a century of worked on the now-terminated Super- record of which he can be proud. service in the Senate, I think, is to be conducting Super Collider can only It is with regret that I bid farewell to complimented. I compliment him for wish that Senator BUMPERS had chosen my friend and colleague, who is now his leadership and for his representa- to retire earlier. departing the United States Senate. I tion of the people of Kentucky. Again, While many a press story covered his believe that the Senate has deeply ben- it was a pleasure and honor for me to crusades against alleged lost causes, efited from the work of U.S. Senator serve with him. I compliment him and Senator DALE BUMPERS is a man that DALE BUMPERS. As I say my farewell to wish him every best wish as he returns leaves this Senate with a triumphant DALE BUMPERS, I want him to know to his State of Kentucky. record for the American people. In par- that when the 106th Congress convenes, I yield the floor. ticular, Senator BUMPERS has been a I will remember his thoughtful recital

VerDate Mar 15 2010 00:42 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00029 Fmt 4624 Sfmt 0634 E:\1998SENATE\S10OC8.REC S10OC8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S12300 CONGRESSIONAL RECORD — SENATE October 10, 1998 of the fictional Atticus Finch in ‘‘To Mr. President, Senator BUMPERS is, ing point in his life. When he was a Kill a Mocking Bird,’’ ‘‘For God’s sake, more than most, a true advocate for sophomore, Miss Doll Means told him, do your duty.’’ the citizens of the United States. I after he had read a page of ‘‘Beowulf″ f know of no better person who embraces that he had a nice voice and he read issues with the passion and intellect beautifully. That one statement, from TRIBUTE TO JOHN GLENN that he demonstrates. His oratory an English teacher in a town of 1,000 Mr. LAUTENBERG. Mr. President, I skills are well-known and rarely people, did more for his self-esteem rise today to bid farewell to an Amer- matched. DALE is a true champion of than anybody, except, he said, his fa- ican hero, a great Senator and a won- the public’s interests, and particularly ther. Not only does he indeed have a derful friend—Senator JOHN GLENN. when that clashes with special inter- nice voice and he reads beautifully, he Senator GLENN is retiring after serving ests. is among the best orators this Senate the people of Ohio for four terms. Throughout his decades of public has ever seen. But his service to our country did not service, as Governor of Arkansas and Mr. President, earlier this year dur- begin in the Senate, nor will it end United States Senator, Senator BUMP- ing the Appropriations Committee here. Senator GLENN served in the Ma- ERS has carried with him a strong, passed an amendment naming a vac- rine Corps during World War II and unyielding belief in a few basic ideas, cine center at NIH after DALE and fought in combat in the South Pacific. ideas that have driven him in his tire- Betty Bumpers. For almost 30 years, He also fought with valor in the Ko- less efforts to make our country—and the two of them have worked tirelessly rean conflict and ended up flying 149 the world—a better place. on a crusade to vaccinate all children— missions in both wars. He has received Senator BUMPERS believes in ensur- and because of their efforts and others, numerous honors including six Distin- ing equal opportunities for all, includ- we have made great progress toward guished Flying Cross and the Air Medal ing the poor and indigent. He believes that goal. with 18 clusters. in providing high quality, comprehen- Mr. President, when the Senior Sen- He later became a test pilot and set sive education and health care. He be- ator from Arkansas leaves this body in a transcontinental speed record in 1957 lieves in the sanctity of our Constitu- a few weeks, there will be a noticeable for this first flight to average super- tion. He believes in the value of the void. We will lose a tireless champion sonic speed from Los Angeles to New arts and humanities in developing for the underserved; a champion for the York. In 1959, he was selected to be one human creativity and a national cul- public’s interest; a champion for re- of seven astronauts in the space pro- ture. He believes in the importance of sponsible spending, not wasteful spend- gram. Three years later, he made his- environmental conservation and pre- ing; and a champion for equal oppor- tory as the first American to orbit the serving our natural resources. He be- tunity, for our environment, and for earth, completing a 5 hour, three orbit lieves in eliminating needless cor- the arts and humanities. Senator flight. BUMPERS has our respect, and he has His heroism inspired me and all of porate subsidies and reducing wasteful defense spending. And he believes in the people’s respect. We will miss him. the American people. He received the Mr. President, I wish my friend and the need to slow the growing gap be- Space Congressional Medal of Honor his wife Betty, their children and tween the rich and the poor. for his service. grandchildren the very best for the fu- Senator BUMPERS has never shied After 23 years in military service, he ture. away from taking on the powerful spe- retired in 1965 and went into the pri- f vate sector. Despite his outstanding cial interests, year after year, even service to his country, it was not when he knows the odds are stacked TRIBUTE TO WENDELL H. FORD against him and he is often dis- enough for JOHN GLENN. He ran for the Mr. LAUTENBERG. Mr. President I Senate in 1974 and is now completing appointed with the results. But he has rise today to pay tribute to our es- his 24th year. kept on trying. teemed colleague from Kentucky, the We have all been witnesses to his elo- Despite his fame, Senator GLENN was Minority Whip, Senator WENDELL H. quent and powerful discourses on a a workhorse, not a showhorse in the FORD. I wish him well. All of us know Senate. He took on complicated issues number of subjects. Every one of his that we have not heard the last from like nuclear proliferation, troop readi- presentations before us and before the this dedicated and effective public ness, government ethics, civil service country have been grounded in per- servant. reform and campaign finance reform. sonal experience and intellectual His retirement from the Senate will He did his work with great diligence strength. When Senator BUMPERS end a formal career of public service to and thoroughness, with his eye on ac- speaks, we know that he speaks from the Commonwealth of Kentucky and complishment not partisanship. his heart. the United States which has lasted If you add his 23 years of military Mr. President, in 1995, the Senate de- over three decades. After first serving service to his 24 years of Service to the bated an amendment that would re- in the Kentucky Senate, he was elected people of Ohio, that is 47 years of dedi- quire zero tolerance for youth who had Lieutenant Governor in 1967 and then cation to our nation. any amount of alcohol in their blood. Governor of Kentucky in 1971. In 1974, But even this is not enough for JOHN Senator BUMPERS revealed his personal he was elected to serve in the United GLENN. On October 29th of this year, he story about his parents and their friend States Senate. will return to space on a shuttle mis- who were killed by a drunk driver Mr. President, in the history of this sion. He will be the oldest person ever while returning from their small farm, body, few Senators have protected the to travel in space but even then his just across the Arkansas River. Sen- interests of his or her state as doggedly journey will not be over. ator BUMPERS was in law school at the as WENDELL FORD. He will continue to represent the time, far away in Chicago. Whether the issue was aviation, to- best of the American spirit and be an DALE, more than most, has the power bacco, telecommunications or farm informal ambassador for scientific ex- to sway with his words. That amend- legislation, Senator FORD has always ploration. ment was swiftly adopted. put the people of Kentucky first. And I wish him, his wife Annie, his chil- Mr. President, also three years ago, even though we have disagreed on a dren and grandchildren the very best the Senate was considering an amend- key issue or two, I know that he is for the future. ment to add funds to the National En- guided by what he believes is best for f dowment for the Humanities. Now, the the people of his state. NEH is a small agency that can, and As the senior Senator from Kentucky RETIREMENT OF DALE BUMPERS does, often come under the budget put it himself: ‘‘If it ain’t good for Ken- Mr. LAUTENBERG. Mr. President, I knife as an insignificant agency. Not to tucky, it ain’t good for WENDELL rise to pay tribute to an extraordinary Senator BUMPERS. Senator BUMPERS FORD.’’ person, a respected and honorable man, took to the Senate floor, and told all of And the people of Kentucky have a true friend, and one whom I am truly us about his high school English teach- shown their deep appreciation to Sen- saddened to see leave the Senate—Sen- er, Miss Doll Means. He touched us ator FORD in return. In 1992, he re- ator DALE BUMPERS. with a personal story that was a turn- ceived the largest number of votes ever

VerDate Mar 15 2010 00:42 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00030 Fmt 4624 Sfmt 0634 E:\1998SENATE\S10OC8.REC S10OC8 mmaher on DSKCGSP4G1 with SOCIALSECURITY October 10, 1998 CONGRESSIONAL RECORD — SENATE S12301 recorded by a candidate for elected of- we share the belief that all children year, I appreciated his insight and sup- fice in the Commonwealth. can succeed if we lend a helping hand. port of my amendment to the Depart- In March of this year, he became the Senator COATS also became a leading ment of Defense Authorization bill to longest serving United States Senator expert in the Senate on military issues require separate training units for from Kentucky in history. as a member of the Armed Services male and female recruits during basic Mr. President, although New Jersey Committee. He also worked hard on training. and Kentucky are very different states, education and poverty legislation as a And, of course, there have been the Senator FORD and I share many things member of the Senate Labor and issues on which we have not seen eye- in common. First of all, our vintage— Human Resources Committee. to-eye. I distinctly remember tangling we were born in the same year. We Mr. President, during Senator COATS’ this year on the Senate floor over Con- both fought for our country in World tenure in the Senate, we did have dis- stitutional issues relating to the de- War II. We both ran businesses before agreements over policy issues. One en- ployment of troops in Bosnia and we entered public life. vironmental issue consistently put the Herzegovina. And, on the balanced These common experiences helped State of Indiana at odds with the State budget amendment and the line item make WENDELL FORD an instant friend of New Jersey. We always had a vig- veto, we have been on opposite sides of and mentor to me when I arrived in the orous debate when this issue came to the coin as well. Yet, Senator COATS al- Senate. His extensive knowledge and the floor. Despite our differences, he ways carries himself well, dem- public service experience has made him showed me great respect and courtesy onstrating the utmost respect for his an invaluable asset to our caucus’ lead- during these deliberations. I left these colleagues on both sides of the aisle. ership. debates with a great respect for his en- For this, I hold him in high regard. And he has been quite a leader, now ergy and determination to help his Perhaps, Senator COATS’ greatest as Minority Whip, first as Chairman state. contribution to the United States Sen- and then Ranking Member of the Rules Mr. President, I wish Senator COATS, ate has been as a member of the Labor Committee, and in prior years, the his wife Marcia, and their children and and Human Resources Committee. His Chairman of the Democratic Senato- grandchildren the very best for the fu- dedication to strengthening families rial Campaign Committee. ture. began long before his political career. Mr. President, Senator FORD has left I yield the floor. He is a longstanding member of Big a formidable legacy to the nation as a f Brothers/Big Sisters of America, and whole, in addition to his legendary sta- was recently elected national president A GOOD SENATOR DEPARTS tus in Kentucky. He was the chief of that organization. His service in the sponsor of the National Voter Registra- Mr. BYRD. Mr. President, first ap- House included serving as a leading tion Act, also known as the ‘‘motor pointed to the United States Senate in member of the Select Committee on voter’’ law. 1989 by Governor Robert Orr to succeed Children, Youth, and Families. On ap- This law helps ensure that more of Vice President Dan Quayle, Senator pointment to the Senate, he became our citizens are officially registered to COATS subsequently won reelection and Ranking Member of the Subcommittee participate in our democracy. He was has served this body during these past on Children and Families, where he has also instrumental in the enactment of nine years with knowledge, skill, and a served as Chairman since 1995. He has the Family and Medical Leave Act, the true dedication to his Senatorial du- been the author of the ‘‘Project for Age Discrimination in Employment ties. As he departs this great institu- American Renewal’’ to revive civil so- Act Amendments of 1986, and many tion to pursue future endeavors, we bid ciety and America’s character-forming other landmark aviation and energy him farewell and best wishes. institutions, and he is a passionate ad- laws. Prior to joining the United States vocate for school choice, unpaid leave The Senior Senator from Kentucky Senate, Senator COATS made his mark for family and medical emergencies, will be greatly missed here in the in several arenas. In his early years, he and prayer in schools. United States Senate. We will miss his served as a staff sergeant in the U.S. Most recently, Senator COATS shep- leadership, his experience and also his Army, experience he drew on as a mem- herded legislation through Congress to great wit. But our personal loss will be ber of the Armed Services Committee. reauthorize the Head Start and Low In- the Commonwealth of Kentucky’s gain. With a passion for law and politics, he come Home Energy Assistance pro- I wish him, his wife Jean, their chil- worked full-time as a legal intern gram. In appreciation of his efforts and dren and grandchildren Godspeed as he while attending the Indiana University compassion for our nation’s children returns to Owensboro. School of Law at night and serving as and families, it was only fitting that f Associate Editor of the Law Review. this piece of legislation was named in Later, in an effort to gain business ex- TRIBUTE TO SENATOR DAN COATS his honor. The Coats Human Service perience, he switched tunes from bar- Reauthorization Act is but just one ex- Mr. LAUTENBERG. Mr. President, I rister to become a vice president for an ample of his fine work here in the rise today to pay tribute to the distin- Indiana life insurance company, all be- United States Senate. guished Senator from Indiana, DAN fore embarking on his legislative ca- In speaking of his ‘‘Project for Amer- COATS. While he has only been in the reer in the House of Representatives, ican Renewal,’’ he says, ‘‘The goal of Senate ten years, he has made an im- where he was elected in 1980 to rep- public policy should be to revive the in- portant contribution. One example is resent Indiana’s Fourth District. stitutions of civil society that build the work he put into developing the During his tenure in the Senate, Sen- character. Arguably, it is the erosion historic, bipartisan Family and Med- ator COATS has served on three power- of those institutions—the family, com- ical Leave Act. ful and influential Senate Commit- munity organizations, and private and Mr. President, believe it or not, even tees—Armed Services, Intelligence, and religious charities—that has led to the though I am a Democrat from the Labor and Human Resources, and has most severe pathologies we now suf- Northeast and Senator COATS is a Re- crafted sound education, health care, fer.’’ I commend Senator COATS for his publican from the Midwest, we have and national security policy for the na- tireless efforts in behalf of these funda- worked together on legislation. Sen- tion. I have had the pleasure of work- mental institutions, and, as he departs ator COATS has consistently fought to ing with Senator COATS on the Armed this body, I wish him well. improve the lives of our nation’s chil- Services Committee, where he has Mr. BURNS addressed the Chair. dren. This commitment led him to join served on the Personnel, Readiness, The PRESIDING OFFICER. The Sen- me in support of the Juvenile Men- and the Airland Forces Subcommit- ator from Montana. toring Program—otherwise know as tees. There have been a variety of na- Mr. BURNS. Mr. President, I under- JUMP. This program supports men- tional defense issues on which we have stand we are under an order that the toring programs across the country, in- concurred, always keeping in mind the Senate go into recess. cluding Big Brothers and Big Sisters. best interests of our national security The PRESIDING OFFICER. Yes. We We have fought together for funding and the importance of a strong and were going to go into recess at 3 and reauthorizing the program because well equipped line of defense. Just this o’clock. However——

VerDate Mar 15 2010 00:42 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00031 Fmt 4624 Sfmt 0634 E:\1998SENATE\S10OC8.REC S10OC8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S12302 CONGRESSIONAL RECORD — SENATE October 10, 1998 Mr. BURNS. I ask unanimous consent 1989. Our routes were a little different, Montana for his kind remarks. I under- that I be able to make some remarks but yet almost the same—he coming stand Montana a little bit. My moth- about our departing colleagues at this from the House of Representatives and er’s brother married a lady from Mon- time. me coming from local government. tana and she persuaded him to move The PRESIDING OFFICER. Without He is a living example of a person there. So I have been to Montana on objection, it is so ordered. dedicated to public service. But it many occasions and have enjoyed the f never affected his solid core values. He friendship, the rugged mountains, the has not changed one iota since I first pristine areas and the big blue sky. I TRIBUTE TO FIVE SENATORS met him back in 1989. have enjoyed it very much—and the LEAVING THE SENATE: SEN- The other principal is on the floor trout are not bad when you catch them ATORS DIRK KEMPTHORNE, today. It is WENDELL FORD of Ken- and have a shore dinner. I understand JOHN GLENN, DAN COATS, WEN- tucky. I was fortunate to serve on two Montana and I can understand why you DELL FORD, AND DALE BUMP- of the most fascinating and hard-work- love it. I can understand why anything ERS ing committees in the U.S. Senate with we might copy from you would make Mr. BURNS. Mr. President, five Sen- Senator FORD: The Commerce Com- our State a little bit better. ators will move on at the closing of mittee and the Energy Committee. I say to my friend from Montana, I this session of the 105th Congress. And Those committees, folks, touch every thank him for his kind remarks. I they are Senators that have, with the life in America every day. thank him for his friendship. I thank exception of one, been here ever since I We flip on our lights at home or in him for his ability to sit down and talk joined this body back in 1989. our businesses. We pick up the tele- things through where we might move DIRK KEMPTHORNE from Idaho was phone, listen to our radio, watch our forward and help the country and talk elected after I was. And now after one televisions, move ourselves from point about those things we couldn’t agree term he has elected to go back to his A to point B, no matter what the mode upon at a later date. I thank him for home State of Idaho. —whether it is auto, train or plane. his friendship. Yes, all of the great scientific advances It seems like it becomes more and f more difficult, as time goes by, to at- this country has made, and research tract men and women to public service, and the improvement of everyday life SENATE BUSINESS and especially to public service when and, yes, even our venture into space Mr. FORD. Mr. President, a few mo- there are elections. comes under the auspices of the Com- ments ago the distinguished assistant He brought a certain quality to this merce, Science and Transportation Republican leader was on the floor Senate. On his work on the Environ- Committee and the Energy Committee. chastising the President, chastising ment and Public Works Committee, he Those two committees play such a Democrats, chastising people that were was sensitive to the environment and major role in the everyday workings of trying to be helpful or influential, and all the public infrastructure that we America. I heard him say more than once, ‘‘Get enjoy across this country. It just WENDELL FORD was one great cham- on with our business.’’ seemed to fit, because he had come pion and one of the true principals in Mr. President, this is October 10th here after being the mayor of Boise, ID. formulating policies that we enjoy and the budget for next year should And his very first objective was to today. He played a major role in each have been completed April 15 of this tackle this business of unfunded man- and every one of them. year. April, May, June, July, August, Again, it was my good fortune to dates. He took that issue on and pro- September, October—we still don’t work with Senator BUMPERS on two vided the leadership, and finally we have a budget. We are running on last committees: The Small Business Com- passed a law that unfunded mandates year’s budget. Somehow or another, mittee and the Energy Committee. must be adhered to whenever we tell this train hasn’t been running as effi- There is no one in this body that has local government, State government been more true to his deeply held be- ciently and as effectively as some that it is going to take some of your think it should. liefs than Senator BUMPERS. Our views If you haven’t had a budget, it makes money to comply with the laws as did not always mesh—and that is true passed by the Federal Government. it difficult to set the levels for next with Senator FORD. It was their wis- year’s spending. We are already into He, like me, had come out of local dom and the way they dealt with their government. He knew the stresses and fellow Senators that we worked our the next fiscal year by 10 days and we the pains of city councilmen and may- way through difficult issues and hard only had one appropriations bill on the ors and county commissioners every times with a sense of humor. I always President’s desk. The distinguished Senator from time they struggle with their budget in say if you come from Arkansas you order to provide the services for their have to have a pretty good sense of Oklahoma says let’s get on with our people, when it comes to schools and humor. My roots go back to Missouri; I business; then he says that the Presi- roads and public safety—all the de- know we had to develop humor very dent should not be involved in negotia- mands that we enjoy down to our early. Nonetheless, it was the integrity tions. Mr. President, I have been neighborhoods. and the honesty that allowed us to set- around here 24 years. I have never gone We shall miss him in this body. tle our differences, even though we through any negotiations involved To my friend, JOHN GLENN of Ohio, were 180 degrees off plumb. with the White House that they didn’t who has already made his mark in his- I think I have taken from them much call me. I have gone to the White tory that shall live forever, he has left more than I have given back to them. House to talk with President Reagan; I his tracks in this body. And not many This body has gained more than it can have gone to the White House to talk know—and maybe not even him—but I repay. This Nation is a better Nation with President Bush in order to try to was a lowly corporal in the U.S. Marine for all of them serving in the U.S. Sen- find a way to be helpful, and they were Corps when he was flying in the Marine ate. trying to find a way to persuade me to Corps. So my memory of JOHN GLENN In our country we don’t say goodbye, be helpful. I don’t see anything wrong goes back more than 40 years to El we just say so long. But we say so long with that. And I don’t believe the Toro Marine Corps Air Station in to these Senators from our everyday President wants to veto bills. That is Santa Anna, CA. activities on the floor of the U.S. Sen- one reason that everybody agreed to As he goes into space again at the ate. I am sure our trails will cross the group—if that is a good term, or end of this month, we wish him God- many times in the future. Should they the Members of the group—so they speed. He gave this country pride as he not, I will be the most disappointed of might be able to work out bills that lifted off and became the first Amer- all. can be signed. I don’t see anything ican to orbit the Earth. And he carried I yield the floor. wrong with the administration playing with him all of the wishes of the Amer- The PRESIDING OFFICER. The Sen- a part in what they believe is the prop- ican people. ator from Kentucky. er course. To DAN COATS of Indiana, a class- Mr. FORD. Mr. President, let me We talk about a budget. Going back mate, we came to this body together in thank my distinguished friend from to 1993, there wasn’t a Republican that

VerDate Mar 15 2010 00:42 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00032 Fmt 4624 Sfmt 0634 E:\1998SENATE\S10OC8.REC S10OC8 mmaher on DSKCGSP4G1 with SOCIALSECURITY October 10, 1998 CONGRESSIONAL RECORD — SENATE S12303 voted for President Clinton’s budget at noon. We will be here Monday. That is Kentucky returned to his home state that time. I wonder how those now who a holiday. They set a sine die date of and launched a successful insurance are saying we have a great surplus can October 9, and we don’t even have the business. But it was the call of public be breaking their arm patting them- appropriations bills done. So let’s not service, the chance to reach out and selves on the back for that great vote be too harsh on the administration for help all of his fellow Kentuckians, that that they didn’t cast in 1993. wanting to try to get it done. meant the most to this young execu- The President has every right to be I regret that I am here. I wish all 13 tive. part of the negotiations. I wanted to appropriations bills had been on the And, so, in 1964, WENDELL FORD began say to my colleague who had to leave, President’s desk and signed before Oc- what was to become a successful polit- what is wrong with wanting more for tober 1, which begins the fiscal year. I ical career by winning election to the education? What is wrong with wanting remember how hard Senator ROBERT Kentucky State Senate. Two years to improve our school system? What is BYRD, when he was chairman of the Ap- later, in 1966, he successfully ran for wrong with having smaller classes? propriations Committee, worked to be the position of Lieutenant Governor, What is wrong with having more teach- sure that all 13 of the appropriations and, in 1970, against all odds, he be- ers? I don’t see anything wrong. bills were on the President’s desk by came Kentucky’s Governor, a position What is wrong with seeing that every September 30. And they were. That is from which he served with distinction child that leaves the third grade can what we are supposed to do. Those are as the chairman of the National Demo- read? What is wrong with that? The the rules. cratic Governors Caucus. 21st century will be full of technology So, Mr. President, I hope that over Mr. President, despite his selfless and we have to have educated children. the weekend we can find some way that service within his state, it is, of course, So what is wrong with trying to im- those who are responsible for the ap- the near quarter-century he has spent prove education in this country? Public propriations bills can bring them to- here in the United States Senate that education teaches 90 percent of all of gether, that they will find a way that has earned WENDELL FORD the admira- our children. It has to be the best edu- we can say we have worked together, tion, the respect, and the undying af- cational system we can give them. We that we have used Henry Clay’s advice fection of his colleagues. And, having need to be able to improve education and we have compromised. Henry Clay been elected to four terms in the Sen- ate, it is obvious that the good people all across this country. said, ‘‘Compromise is negotiated hurt.’’ of Kentucky also understand and ap- How in the world can the Senator Negotiated hurt. Clay said, ‘‘You have preciate the skill, the dedication, and from Oklahoma say that the Federal to give up something and it hurts, and the flawless integrity that WENDELL Government will appoint their teach- I have to give up something and it FORD brings to his work. He serves ers? We give money to the States. The hurts. Once we agree, then I am willing Kentucky and the Nation with a wit States, then, make the selection. The to sign a social contract.’’ and candor that are as timely and as States, then, set the criteria. The Clay was saying he was willing to refreshing as a cool Kentucky breeze States, then, have the vacancy. The support legislation to move the coun- on a hot summer day. States do that. I have never known a try forward and on another day we will In fact, in 1992, he began a string of Federal Government to hire a teacher argue the things we had to give up. So historical achievements when he re- in my State. I have been Governor. I that is what we are all about here —the ceived the largest number of votes ever understand writing a budget. I under- Henry Clay era of compromise, and the recorded by a candidate for elected of- stand what we do. I still understand it. ability to sign a social contract and fice in the state of Kentucky. On No- But I don’t believe the Federal Edu- move forward in the best interest of vember 14, 1996, WENDELL FORD broke cation Department hires teachers in this country. I hope that we can see the Alben Barlkey’s record for the longest my State or any State. So we are not light at the end of the tunnel by the consecutive service in the United telling them who to hire and who not end of the week. I hope to be here to States Senate as a Senator from the to hire. cast a vote in favor of a compromise Commonwealth, while becoming the That is just a straw man, or what- and agreement that will make this overall longest serving Senator from ever, to try to say we don’t want Big country a better country. It is my last Kentucky in March of this year. Brother involved. We sure want Big one, Mr. President. I would like to see Mr. President, such milestones are Brother’s money, we sure want Big as good a piece of legislation in all not just proud, personal moments, al- Brother to pay it, but we don’t want areas passed, so that when we look though they are that. Rather, they them to have anything to do with any back on this session, we will have said speak to the immense respect, and the kind of guidelines. we did a good job. tremendous trust that the citizens of So, when we come out on the floor I yield the floor. Kentucky have for their distinguished and chastise the President and the ad- f senior Senator. Of course, to those of ministration for wanting to work out us who know WENDELL FORD, such re- pieces of legislation, you talk to the A GOOD SENATOR RETURNS TO THE HILLS OF HOME spect and trust are not unfounded. farmers in the Midwest, talk to farm- As a Member of this body, Senator ers in my State; they have had a tough Mr. BYRD. Mr. President, over the FORD has become a recognized leader in several years. Sure, it may have been next few days, as the Senate concludes such diverse areas as aviation, federal less a year ago than it is now and times its legislative business, one of the fin- campaign finance reform, and energy. have changed. We have had a bad sum- est individuals it has been my privilege He has, through dedication and hard mer. We have had real problems. So to know will bring to a close yet an- work, shaped such important legisla- why not help our farmers? other chapter in what has been, by any tion as the National Voter Registra- So, Mr. President, I suggest to those measure, an extraordinary public serv- tion Act, the Federal Aviation Admin- who want to come to the floor and have ice career. When that time comes— istration Authorization Act of 1994, the press conferences saying that the ad- when the senior Senator from the Com- Family and Medical Leave Act, the Na- ministration ought to stay out of our monwealth of Kentucky walks out of tional Energy Security Act of 1992, and business and we will pass the legisla- this chamber for the last time as a the Energy Security Act of 1977. tion, well, where is it? Where is the leg- United States Senator—this institu- The commitment shown by our col- islation? What have we passed? The Pa- tion, and all who serve in it, will feel a league from Kentucky in working on tients’ Bill of Rights? No; that was great and lasting loss. these and other profound and troubling killed yesterday. Education? No. Where When WENDELL FORD came to this problems that face this Nation is em- are the bills they were supposed to body on December 28, 1974, thus becom- blematic of the devoted public servant pass? ‘‘Let us get on with our busi- ing the 1,685th individual to have that WENDELL FORD has shown himself ness,’’ the Senator from Oklahoma served in the Senate, he did so not as a to be. There will be few who will match said. Well, let’s get on with our busi- political neophyte but as an accom- the accomplishments of our friend; few ness. plished entrepreneur and a dedicated who will bring to this body a deeper Here we are on Saturday, and we are and seasoned public servant. Following passion; and few who will legislate with lucky we are not in on Sunday after- service in World War II, our friend from greater skill.

VerDate Mar 15 2010 00:42 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00033 Fmt 4624 Sfmt 0634 E:\1998SENATE\S10OC8.REC S10OC8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S12304 CONGRESSIONAL RECORD — SENATE October 10, 1998 Mr. President, as he prepares to leave JOHN GLENN. Whenever any of the as- Seiber Ward, Orrie Sinclair, Mark the Senate, I offer my sincere gratitude tronauts—the original seven—would Snider, Glen Tait, Jim Tate, Kelly to Senator WENDELL FORD for his pro- blast off into space, my mother would Teske. fessionalism, for his friendship, for his get all the boys up so we could watch Salle Uberuaga, Jennifer Wallace, leadership, for his candor, and for his them. I remember when JOHN GLENN Brian Whitlock, Suzanne Bacon, Becky many years of dedicated service to our blasted off into space. Again, the idea Bale, Stan Clark, Tom Dayley, Tyler Nation. I would also like to express my that somehow a kid would end up here Dougherty, Carolyn Durant, George admiration, and that of my wife, Erma, and would serve with JOHN GLENN is Enneking. to WENDELL’s gracious and dedicated just something I never could dream of Buzz Fawcett, Margo Gaetz, Erin wife, Jean. Few know, of course, of the at the time. In fact, JOHN GLENN be- Givens, Jim Grant, Wendy Guisto, Jen- tremendous sacrifices made by our came a partner in our efforts to stop nifer Hayes, Al Henderson, Heather spouses. But those of us who serve in unfunded Federal mandates. You could Irby, Steve Judy, Jeff Loveng. this body understand the price paid by not ask for a better partner. Brian McCormack, Darrell these selfless, silent partners. None has Speaking of partners, he could not McRoberts, Peter Moloney, Scott done so with greater dignity, or with have a better partner than Annie. I had Muchow, Dan Ramirez, Dixie Richard- more grace, than has Jean Ford. the great joy of traveling with them son, Stephanie Schisler, Carrie Stach, And, so, I say to my friend from the approximately a year ago when we Gary Smith, Michael Stinson, Sally Commonwealth of Kentucky, I have went to Asia. That is when you get to Taniguchi, Julie Tensen, Mitchell treasured the time we have worked to- know these people as couples. I remem- Toryanski, Brian Waidmann, Vaughn gether, and I wish him good luck and ber that we happened to be flying over Ward. God’s speed. He is coming home. an ocean when it was the Marine Corps’ That is a lot of staff. But over 6 Weep no more, my lady, birthday. On the airplane we had a years, some of those have come and Oh! weep no more to-day! cake and brought it out, to the surprise gone. We will sing one song for the Old Kentucky of JOHN GLENN. But you could see the I have also received valuable assist- Home, emotion in his eyes. I know the Pre- ance from interns who have worked in For the old Kentucky Home far away. siding Officer is a former U.S. Marine, my state and Washington offices. I ask ‘‘My Old Kentucky Home,’’ Stephen Collins so he knows what we are talking about. unanimous consent that the following Foster, 1826–1864. DAN COATS. There is no more genuine list of interns for the past six years be Mr. KEMPTHORNE addressed the a person than DAN—not only in the printed in the RECORD. Chair. Senate but on the face of the Earth. He There being no objection, the list was The PRESIDING OFFICER. The Sen- is a man of great sincerity, a man who ordered to be printed in the RECORD, as ator from Idaho. can articulate his position so ex- follows: f tremely well. He is a man who, when INTERNS TRIBUTE TO DEPARTING SEN- you look into his eyes, you know he is Angie Adams, Tara Anderson, Jennifer ATORS AND SENATOR listening to you and he is going to do Beck, Matthew Blackburn, Emily Burton, KEMPTHORNE’S STAFF right by you and by the people of his Emilie Caron, Michelle Crapo, Matt Free- State of Indiana, and he has done right man, Amy Hall, Rick Hansen. Mr. KEMPTHORNE. Mr. President, I by the people of the United States. He Michelle Hyde, Paul Jackson, Beth Ann appreciate you presiding as you do in is a man who has great faith, a man to Kerrick, Heather Lauer, Jennifer Ludders, such a class fashion. I would like to whom I think a number of us have Karen Marchant, Kendal McDevitt, Jan Nielsen, Bryan James Palmer, Tracy make a few comments here. I have been looked for guidance. touched and impressed by the fact of Pellechi. When you look at the Senate through Tyler Prout, James Rolig, Dallas Scholes, colleagues coming to the floor and pay- the eyes of a camera, you see just one Robin Staker, Meghan Sullivan, Omar ing tribute to those Members who are dimension. But on the floor of the Sen- Valverde, Franciose Whitlock, James Wil- departing. I have listened because, as ate we are just people. A lot of times liams, Curt Wozniak, Tim Young. one of those Members who are depart- we don’t get home to our wives and Kim Albers, Chris Bailey, Kevin Belew, ing, I know personally how much it kids and sometimes to the ball games David Booth, Matt Campbell, Stephen means to hear those kind comments or back-to-school nights. There are Cataldo, Pandi Ellison, Andrew Grutkowski, that are made. Chad Hansen, Sarah Heckel. times when some of the issues don’t go Laura Hyneman, Michael Jordan, Lisa Senator FORD, who just spoke, is as we would like, and it gets tough. At Lance, Keith Lonergan, Lori Manzaneres, leaving after a very illustrious career. these times, we hurt. There are people Wade Miller, Kate Montgomery, Rocky I remember when the Republican Party like DAN COATS to whom you can turn, Owens, Kurt Pipal, Alan Poff. took over the majority 4 years ago and who has said, ‘‘Buddy, I have been Nichole Reinke, Don Schanz, Nathan Si- I was new to the position of Presiding there and I am with you now.’’ So, erra, Jacob Steele, David Thomas, Curtis Officer, it was not unusual for WEN- again, he is an outstanding individual. Wheeler, Brian Williams, Angie Willie, DELL FORD, who knows many of the Also, Mr. President, I have been real- Darryl Wrights. ropes around here, to come and pull me ly fortunate with the quality of the Mr. KEMPTHORNE. Mr. President, aside and give me a few of the tips of staff I have had here in the U.S. Senate this will probably be the last time offi- how I could be effective as a Presiding during the 6 years I have been here. As cially on this floor as a U.S. Senator Officer. I think probably one of the I have listened so many times to the that I look at the faces of these people highest tributes you can pay to an in- Senate clerk call the roll of those Sen- that you and I have worked with—the dividual is the fact that you see their ators, they have answered that roll. I clerks, and Parliamentarians, the staff. family and the success they have had. would like to just acknowledge this It is family. The young pages that we I remember when WENDELL FORD’s roll of those staff members whom I see here with that sparkle in their eye grandson, Clay, was a page here. I have had. This is probably the first and and the enthusiasm that they have for think Clay is probably one of the great- only time their names will be called in this process—it is fun to talk to you est tributes paid to a grandfather. this august Chamber: and to see your sense of enthusiasm for DALE BUMPERS, often mentioned here Cindy Agidius, Marcia Bain, Jeremy this. As I said, you are going to have a on the floor about his great sense of Chou, Camy Mills Cox, Laurette Da- sense of the U.S. Senate like few citi- humor, is an outstanding gentlemen. vies, Michelle Dunn, Becky English, zens, because you have been here, you He is someone whom I remember before Gretchen Estess, Ryan Fitzgerald, have experienced it, and you have been I ever became involved in politics. I Lance Giles. up close in person. watched him as a Governor of Arkan- Charles Grant, Ernie Guerra, Julie But to those of you that I see now as sas and thought, there is a man who Harwood, Laura Hyneman, Meg Hunt, I look to the desk, those who have sat has great integrity, someone you can Catherine Josling, Ann Klee, Amy in your places that I have worked with look up to. And then to have the oppor- Manwaring, John McGee, Liz Mitchell. through these years, I thank you. tunity to serve with him has been a Heather Muchow, Jay Parkinson, America is well served by you, by your great honor. Phil Reberger, Rachel Riggs, Shawna professionalism and your dedication.

VerDate Mar 15 2010 00:42 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00034 Fmt 4624 Sfmt 0634 E:\1998SENATE\S10OC8.REC S10OC8 mmaher on DSKCGSP4G1 with SOCIALSECURITY October 10, 1998 CONGRESSIONAL RECORD — SENATE S12305 So I thank you. I thank the Cloak- with amendments, in which it requests Committee on Banking, Housing, and Urban room again; all of the family; the staff, the concurrence of the Senate: Affairs. EC–7414. A communication from the Gen- from the police officers and the waiters S. 2375. An act to amend the Securities Ex- eral Counsel of the Department of Housing change Act of 1934 and the Foreign Corrupt and waitresses, and the folks who make and Urban Development, transmitting, pur- Practices Act of 1977, to strengthen prohibi- this place work; the Senate Chaplain; suant to law, the report of a rule entitled tions on international bribery and other cor- and, Mr. President, again I thank you ‘‘Ginnie Mae MBS Program: Book Entry Se- rupt practices, and for other purposes. for your courtesy, and I bid you fare- curities’’ (Docket FR–4332–I–01) received on well. ENROLLED JOINT RESOLUTION SIGNED October 8, 1998; to the Committee on Bank- I yield the floor. A message from the House of Rep- ing, Housing, and Urban Affairs. The PRESIDING OFFICER. Thank resentatives, delivered by one of its EC–7415. A communication from the Assist- you, Senator. The people of Idaho and reading clerks announced that the ant Secretary for Export Administration, the people of the country are very Speaker has signed the following en- Department of Commerce, transmitting, pursuant to law, the report of a rule entitled proud of your service. We wish you rolled Joint Resolution: ‘‘Clarification of Reporting Requirements well. H.J. Res. 131. Joint resolution waiving cer- Under the Wassenaar Arrangement’’ f tain enrolling requirements for the remain- (RIN0694–AB724) received on October 8, 1998; der of the One Hundred Fifth Congress with to the Committee on Banking, Housing, and MESSAGES FROM THE HOUSE respect to any bill or joint resolution mak- Urban Affairs. At 12:30 p.m., a message from the ing general or continuing appropriations for EC–7416. A communication from the Assist- House of Representatives, delivered by fiscal year 1999. ant Secretary for Export Administration, Mr. Hanrahan, one of its reading The enrolled joint resolution was Department of Commerce, transmitting, pur- clerks, announced that pursuant to the signed subsequently by the President suant to law, the report of a rule entitled ‘‘Request for Comments on Effects of For- pro tempore (Mr. THURMOND). provisions of section 703 of the Social eign Policy-Based Export Controls’’ (Docket Security Act (42 U.S.C. 903) as amended f 980922243–8243–01) received on October 8, 1998; by section 103 of Public Law 103–296, EXECUTIVE AND OTHER to the Committee on Banking, Housing, and the Speaker reappoints Ms. Jo Anne COMMUNICATIONS Urban Affairs. Barnhart of Virginia as a member from EC–7417. A communication from the Execu- private life on the part of the House to The following communications were tive Director of the Air Force Sergeants As- the Security Advisory Board to fill the laid before the Senate, together with sociation, transmitting, pursuant to law, the existing vacancy thereon. accompanying papers, reports, and doc- Association’s annual report and audit for fis- uments, which were referred as indi- cal year 1998; to the Committee on the Judi- The message also announced that the ciary. House has agreed to the following con- cated: EC–7418. A communication from the Chair- current resolution, in which it requests EC–7407. A communication from the Assist- person of the United States Commission on the concurrence of the Senate: ant Secretary for Employment and Training, Civil Rights, transmitting, pursuant to law, H. Con. Res. 214. Concurrent resolution rec- Department of Labor, transmitting, pursu- a report entitled ‘‘Helping State and Local ognizing the contributions of the cities of ant to law, the report of a rule entitled Governments Comply with the ADA’’; to the Bristol, Tennessee, and Bristol, Virginia, and ‘‘General Administration Letter No. 8–98’’ re- Committee on the Judiciary. their people on the origins and development ceived on October 6, 1998; to the Committee EC–7419. A communication from the Chair- of Country Music, and for other purposes. on Finance. person of the United States Commission on EC–7408. A communication from the Execu- The message further announced that Civil Rights, transmitting, pursuant to law, tive Director of the Committee for Purchase a report entitled ‘‘Helping Employers Com- the House has passed the following From People Who Are Blind or Severely Dis- ply with the ADA’’; to the Committee on the bills, in which it requests the concur- abled, transmitting, pursuant to law, a no- Judiciary. rence of the Senate: tice of additions and deletions to the Com- EC–7420. A communication from the Sec- H.R. 2560. An act to authorize the Presi- mittee’s Procurement List dated September retary of the Treasury, transmitting, pursu- dent to award gold medals to Jean Brown 28, 1998; to the Committee on Governmental ant to law, the audit of the Telecommuni- Trickey, Carlotta Walls LaNier, Melba Affairs. cations Development Fund; to the Com- Patillo Beals, Terrence Roberts, Gloria Ray EC–7409. A communication from the Direc- mittee on Commerce, Science, and Transpor- Karlmark, Thelma Mothershed Wair, Ernest tor of the Office of Personnel Management, tation. Green, Elizabeth Eckford, and Jefferson transmitting, pursuant to law, the report of EC–7421. A communication from the Asso- Thomas, commonly referred to collectively a rule entitled ‘‘Performance Ratings’’ ciate Managing Director for Performance as the ‘‘Little Rock Nine,’’ and for other pur- (RIN3206–AH77) received on October 6, 1998; Evaluation and Records Management, Fed- poses. to the Committee on Governmental Affairs. eral Communications Commission, transmit- H.R. 4516. An act to designate the United EC–7410. A communication from the Direc- ting, pursuant to law, the report of a rule en- States Postal Service building located at tor of the Office of Rulemaking Coordina- titled ‘‘Development of Competition and Di- 11550 Livingston Road, in Oxon Hill, Mary- tion, Department of Energy, transmitting, versity in Video Programming Distribution land, as the ‘‘Jacob Joseph Chestnut Post Of- pursuant to law, the report of a rule entitled and Carriage’’ (Docket 97–248) received on fice Building.’’ ‘‘Price Competitive Sale of Strategic Petro- October 8, 1998; to the Committee on Com- The message also announced that the leum Reserve Petroleum; Standard Sales merce, Science, and Transportation. Provision’’ (RIN1901–AA81) received on Octo- EC–7422. A communication from the Asso- House has passed the following bills, ber 8, 1998; to the Committee on Energy and ciate Managing Director for Performance without amendment: Natural Resources. Evaluation and Records Management, Fed- S. 2094. An act to amend the Fish and Wild- EC–7411. A communication from the Direc- eral Communications Commission, transmit- life Improvement Act of 1978 to enable the tor of the Office of Rulemaking Coordina- ting, pursuant to law, the report of a rule en- Secretary of the Interior to more effectively tion, Department of Energy, transmitting, titled ‘‘U.S. Coast Guard Vessel Traffic Serv- use the proceeds of sales of certain items. pursuant to law, the report of a rule entitled ices (VTS) Systems in New Orleans, Lou- S. 2193. An act to implement the provisions ‘‘Personnel Assurance Program’’ (RIN1992– isiana’’ (DA 98–1935) received on October 8, of the Trademark Law Treaty. AA14) received on October 8, 1998; to the 1998; to the Committee on Commerce, S. 2235. An act to amend part Q of the Om- Committee on Energy and Natural Re- Science, and Transportation. nibus Crime Control and Safe Streets Act of sources. EC–7423. A communication from the Direc- 1968 to encourage the use of school resource EC–7412. A communication from the Direc- tor of Executive Budgeting and Assistance officers. tor of the Office of Rulemaking Coordina- Management, Department of Commerce, S. 2505. An act to direct the Secretary of tion, Department of Energy, transmitting, transmitting, pursuant to law, the report of the Interior to convey title to the Tunnison pursuant to law, the report of a rule regard- a rule entitled ‘‘Audit Requirements for Lab Hagerman Field Station in Gooding ing energy conservation standards for elec- State and Local Governments; Audit Re- County, Idaho, to the University of Idaho. tric cooking products (RIN1904–AA84) requirements for Institutions of Higher Edu- The message further announced that ceived on October 8, 1998; to the Committee cation and Other Non-Profit Organizations’’ the House has passed the following bill, on Energy and Natural Resources. (RIN0605–AA12) received on October 8, 1998; with an amendment, in which it re- EC–7413. A communication from the Chief to the Committee on Commerce, Science, quests the concurrence of the Senate: Counsel of the Office of Foreign Assets Con- and Transportation. trol, Department of the Treasury, transmit- EC–7424. A communication from the Acting S. 191. An act to throttle criminal use of ting, pursuant to law, the report of a rule en- Director of the Office of Sustainable Fish- guns. titled ‘‘Federal Republic of Yugoslavia (Ser- eries, National Oceanic and Atmospheric Ad- The message also announced that the bia and Montenegro) Kosovo Sanctions Regu- ministration, Department of Commerce, House has passed the following bill, lations’’ received on October 8, 1998; to the transmitting, pursuant to law, the report of

VerDate Mar 15 2010 00:42 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00035 Fmt 4624 Sfmt 0634 E:\1998SENATE\S10OC8.REC S10OC8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S12306 CONGRESSIONAL RECORD — SENATE October 10, 1998 a rule entitled ‘‘Atlantic Tuna Fisheries; At- Japanese F–15 aircraft (DTC 131–98); to the EC–7447. A communication from the Direc- lantic Bluefin Tuna’’ (I.D. 092298C) received Committee on Foreign Relations. tor of the Office of Regulatory Management on October 8, 1998; to the Committee on Com- EC–7437. A communication from the Assist- and Information, Environmental Protection merce, Science, and Transportation. ant Secretary for Legislative Affairs, De- Agency, transmitting, pursuant to law, the EC–7425. A communication from the Assist- partment of State, transmitting, pursuant to report of a rule entitled ‘‘Cyromazine; Exten- ant Secretary for Legislative Affairs, De- law, notice of a proposed license for the mansion of Tolerance for Emergency Exemp- partment of State, transmitting, pursuant to ufacture of F100–PW–229/–229A engine parts tions’’ (FRL6037–1) received on October 8, law, notice of a proposed license for the ex- in Norway (DTC 132–98); to the Committee on 1998; to the Committee on Environment and port of remote sensing satellite technical Foreign Relations. Public Works. data to Greece (DTC 69–98); to the Com- EC–7438. A communication from the Assist- EC–7448. A communication from the Direc- mittee on Foreign Relations. ant Secretary for Legislative Affairs, De- tor of the Office of Regulatory Management EC–7426. A communication from the Assist- partment of State, transmitting, pursuant to and Information, Environmental Protection ant Secretary for Legislative Affairs, De- law, notice of a proposed transfer of three Agency, transmitting, pursuant to law, the partment of State, transmitting, pursuant to Hercules C–130E aircraft from the United report of a rule entitled ‘‘Hexythiazox; Pes- law, notice of a proposed license for the man- Kingdom to the Government of Sri Lanka ticide Tolerances’’ (FRL6035–2) received on ufacture of circuit card assemblies for the (RSAT 4–98); to the Committee on Foreign October 8, 1998; to the Committee on Envi- T16–B Monolithic Ring Laser Gyro Inertial Relations. ronment and Public Works. Navigation System in Mexico (DTC 96–98); to EC–7439. A communication from the Assist- EC–7449. A communication from the Direc- the Committee on Foreign Relations. ant Legal Adviser for Treaty Affairs, Depart- tor of the Office of Regulatory Management EC–7427. A communication from the Assist- ment of State, transmitting, pursuant to and Information, Environmental Protection ant Secretary for Legislative Affairs, De- law, the texts of international agreements Agency, transmitting, pursuant to law, the partment of State, transmitting, pursuant to other than treaties entered into by the report of a rule entitled ‘‘Mancozeb; Pes- law, notice of a proposed license for the man- United States (98–150 to 98–154); to the Com- ticide Tolerances for Emergency Exemp- ufacture of FLYER R–12D lightweight mili- mittee on Foreign Relations. tions’’ (FRL6029–5) received on October 8, EC–7440. A communication from the Assist- tary vehicles in Singapore (DTC 104–98); to 1998; to the Committee on Environment and ant Secretary for Legislative Affairs, De- the Committee on Foreign Relations. Public Works. EC–7428. A communication from the Assist- partment of State, transmitting, pursuant to EC–7450. A communication from the Direc- ant Secretary for Legislative Affairs, De- law, certification for fiscal year 1999 that no tor of the Office of Regulatory Management United Nations Agency or affiliate promotes partment of State, transmitting, pursuant to and Information, Environmental Protection or condones the legalization of pedophilia; to law, notice of a proposed license for the man- Agency, transmitting, pursuant to law, the the Committee on Foreign Relations. report of a rule entitled ‘‘Paraquat; Exten- ufacture of certain PATRIOT System compo- EC–7441. A communication from the Assist- nents in Japan (DTC 106–98); to the Com- ant Secretary for Legislative Affairs, De- sion of Tolerance for Emergency Exemp- mittee on Foreign Relations. partment of State, transmitting, pursuant to tions’’ (FRL6032–5) received on October 8, EC–7429. A communication from the Assist- law, notice of an emergency transfer of AN/ 1998; to the Committee on Environment and ant Secretary for Legislative Affairs, De- ALQ–131 electronic counter-measure pods to Public Works. EC–7451. A communication from the Direc- partment of State, transmitting, pursuant to the Government of Norway; to the Com- tor of the Office of Regulatory Management law, notice of a proposed license for the man- mittee on Foreign Relations. ufacture of fire control radar accelerometers EC–7442. A communication from the Direc- and Information, Environmental Protection for end use on United Kingdom AH–64 Apache tor of the Office of Regulatory Management Agency, transmitting, pursuant to law, the helicopters (DTC 108–98); to the Committee and Information, Environmental Protection report of a rule entitled ‘‘Tebuconazole; Ex- on Foreign Relations. Agency, transmitting, pursuant to law, the tension of Tolerances for Emergency Exemp- EC–7430. A communication from the Assist- report of a rule entitled ‘‘Approval and Pro- tions’’ (FRL6034–7) received on October 2, ant Secretary for Legislative Affairs, De- mulgation of Air Quality Implementation 1998; to the Committee on Environment and partment of State, transmitting, pursuant to Plans; Maryland; Withdrawal of Final Rule’’ Public Works. law, notice of a proposed transfer of tech- (FRL6174–3) received on October 8, 1998; to EC–7452. A communication from the Direc- nical data and assistance to Spain relative to the Committee on Environment and Public tor of the Office of Regulatory Management F100 AEGIS frigates (DTC 115–98); to the Works. and Information, Environmental Protection Committee on Foreign Relations. EC–7443. A communication from the Direc- Agency, transmitting, pursuant to law, the EC–7431. A communication from the Assist- tor of the Office of Regulatory Management report of a rule entitled ‘‘Maleic Hydrazide; ant Secretary for Legislative Affairs, De- and Information, Environmental Protection Extension of Tolerances for Emergency Ex- partment of State, transmitting, pursuant to Agency, transmitting, pursuant to law, the emptions’’ (FRL6034–8) received on October 2, law, notice of a proposed license for the man- report of a rule entitled ‘‘Approval and Pro- 1998; to the Committee on Environment and ufacture of F–15 electrohydraulic flight con- mulgation of Air Quality Implementation Public Works. trol systems in Japan (DTC 117–98); to the Plans; Pennsylvania; Approval of VOC and EC–7453. A communication from the Direc- tor of the Office of Regulatory Management Committee on Foreign Relations. NOX RACT Determinations for Individual EC–7432. A communication from the Assist- Sources’’ (FRL6166–1) received on October 8, and Information, Environmental Protection ant Secretary for Legislative Affairs, De- 1998; to the Committee on Environment and Agency, transmitting, pursuant to law, the partment of State, transmitting, pursuant to Public Works. report of a rule entitled ‘‘Approval and Pro- law, notice of a proposed license for the up- EC–7444. A communication from the Direc- mulgation of Implementation Plans Georgia: grading of Japanese F–15 Aircraft (DTC 120– tor of the Office of Regulatory Management Approval of Revisions to the Georgia State 98); to the Committee on Foreign Relations. and Information, Environmental Protection Implementation Plan’’ (FRL6170–8) received EC–7433. A communication from the Assist- Agency, transmitting, pursuant to law, the on October 2, 1998; to the Committee on En- ant Secretary for Legislative Affairs, De- report of a rule entitled ‘‘Approval and Pro- vironment and Public Works. partment of State, transmitting, pursuant to mulgation of Implementation Plans; Min- EC–7454. A communication from the Direc- law, notice of a proposed license for the ex- nesota’’ (FRL6162–1) received on October 8, tor of the Office of Regulatory Management port of air surveillance systems to Algeria 1998; to the Committee on Environment and and Information, Environmental Protection (DTC 124–98); to the Committee on Foreign Public Works. Agency, transmitting, pursuant to law, the Relations. EC–7445. A communication from the Direc- report of a rule entitled ‘‘Approval and Pro- EC–7434. A communication from the Assist- tor of the Office of Regulatory Management mulgation of Air Quality Implementation ant Secretary for Legislative Affairs, De- and Information, Environmental Protection Plans; Maine; Source Surveillance Regula- partment of State, transmitting, pursuant to Agency, transmitting, pursuant to law, the tion’’ (FRL6172–8) received on October 2, 1998; law, notice of a proposed license for the man- report of a rule entitled ‘‘Approval and Pro- to the Committee on Environment and Pub- ufacture of avionics in support of the U.S. mulgation of Implementation Plans Ten- lic Works. Air Force T–38 Avionics Upgrade Program in nessee: Approval of Revisions to the Nash- EC–7455. A communication from the Direc- Israel (DTC 126–98); to the Committee on ville/Davidson County Portion of the Ten- tor of the Office of Regulatory Management Foreign Relations. nessee SIP Regarding Control of Volatile Or- and Information, Environmental Protection EC–7435. A communication from the Assist- ganic Compounds’’ (FRL6169–6) received on Agency, transmitting, pursuant to law, the ant Secretary for Legislative Affairs, De- October 8, 1998; to the Committee on Envi- report of a rule entitled ‘‘Finding of Signifi- partment of State, transmitting, pursuant to ronment and Public Works. cant Contribution and Rulemaking for Cer- law, notice of a proposed license for the ex- EC–7446. A communication from the Direc- tain States in the Ozone Transport Assess- port of MK 41 Vertical Launch Systems to tor of the Office of Regulatory Management ment Group Region for Purposes of Reducing Japan (DTC 127–98); to the Committee on and Information, Environmental Protection Regional Transport of Ozone’’ (FRL6171–2) Foreign Relations. Agency, transmitting, pursuant to law, the received on October 5, 1998; to the Committee EC–7436. A communication from the Assist- report of a rule entitled ‘‘Approval and Pro- on Environment and Public Works. ant Secretary for Legislative Affairs, De- mulgation of State Plans for Designated Fa- EC–7456. A communication from the Sec- partment of State, transmitting, pursuant to cilities and Pollutants: Alabama’’ (FRL6168– retary of the Interior, transmitting, pursu- law, notice of a proposed license for the man- 4) received on October 8, 1998; to the Com- ant to law, the Department’s report on oper- ufacture of F100–PW–100 engines for use in mittee on Environment and Public Works. ations of the Glen Canyon Dam for Water

VerDate Mar 15 2010 00:42 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00036 Fmt 4624 Sfmt 0634 E:\1998SENATE\S10OC8.REC S10OC8 mmaher on DSKCGSP4G1 with SOCIALSECURITY October 10, 1998 CONGRESSIONAL RECORD — SENATE S12307 Year 1997 and 1998; to the Committee on En- ices to Medicare beneficiaries; to the Com- By Mr. MURKOWSKI, from the Committee ergy and Natural Resources. mittee on Finance. on Energy and Natural Resources: EC–7457. A communication from the Sec- EC–7468. A communication from the Acting Report to accompany the bill (S. 2086) to retary of Energy, transmitting, pursuant to Assistant Attorney General, Department of revise the boundaries of the George Wash- law, the Department’s report entitled ‘‘Re- Justice, transmitting, a draft of proposed ington Birthplace National Monument (Rept. port on Alternative System for Availability legislation entitled ‘‘The Fugitive Apprehen- No. 105–403). of Funds’’; to the Committee on Energy and sion Act’’; to the Committee on the Judici- By Mr. MURKOWSKI, from the Committee Natural Resources. ary. on Energy and Natural Resources: EC–7458. A communication from the Sec- EC–7469. A communication from the Assist- Report to accompany the bill (S. 2240) to retary of Health and Human Services, trans- ant Secretary for Legislative Affairs, De- establish the Adams National Historical mitting, pursuant to law, the Department’s partment of State, transmitting, pursuant to Park in the Commonwealth of Massachu- report on completed projects funded under law, notice of a proposed license for the pro- setts, and for other purposes (Rept. No. 105– the Community Services Block Grant Act for duction of Air-to-Air Stinger launchers and 404). fiscal years 1991 through 1994; to the Com- related equipment in Turkey (DTC 88-98) re- By Mr. MURKOWSKI, from the Committee mittee on Labor and Human Resources. ceived on October 9, 1998; to the Committee on Energy and Natural Resources: EC–7459. A communication from the Assist- on Foreign Relations. Report to accompany the bill (S. 2246) to ant Secretary for Mine Safety and Health, EC–7470. A communication from the Assist- amend the Act which established the Fred- Department of Labor, transmitting, pursuant Secretary for Legislative Affairs, De- erick Law Olmsted National Historic Site, in ant to law, the report of a rule entitled ‘‘Ex- partment of State, transmitting, pursuant to the Commonwealth of Massachusetts, by perienced Miner and Supervisor Training’’ law, notice of a proposed license for the man- modifying the boundary and for other pur- (RIN1219–AB13) received on October 9, 1998; ufacture of M582A1 artillery shell fuses for poses (Rept. No. 105–405). to the Committee on Labor and Human Re- export to Greece (DTC 91-98) received on Oc- By Mr. MURKOWSKI, from the Committee sources. tober 9, 1998; to the Committee on Foreign on Energy and Natural Resources: EC–7460. A communication from the Ad- Relations. Report to accompany the bill (S. 2307) EC–7471. A communication from the Assist- ministrator of the Agricultural Marketing making appropriations for the Department ant Secretary for Legislative Affairs, De- Service, Department of Agriculture, trans- of Transportation and related agencies for partment of State, transmitting, pursuant to mitting, pursuant to law, the report of a rule the fiscal year ending September 30, 1999, and law, notice of a proposed license for the man- regarding a clarification of reporting re- for other purposes (Rept. No. 105–406). ufacture of certain military computer sys- quirements under the Potato Research and By Mr. MURKOWSKI, from the Committee tems in Canada (DTC 103-98) received on Oc- Promotion Plan (Docket FV–96–703FR) re- on Energy and Natural Resources: tober 9, 1998; to the Committee on Foreign ceived on October 9, 1998; to the Committee Report to accompany the bill (S. 2468) to on Agriculture, Nutrition, and Forestry. Relations. EC–7472. A communication from the Assist- designate the Biscayne National Park visitor EC–7461. A communication from the Direc- center as the Dante Fascell Visitor Center at tor of the Office of Sustainable Fisheries, ant Secretary for Legislative Affairs, De- partment of State, transmitting, pursuant to Biscayne National Park (Rept. No. 105–407). National Oceanic and Atmospheric Adminis- By Mr. MURKOWSKI, from the Committee tration, Department of Commerce, transmit- law, notice of a proposed license for the export of technical data to Japan for the de- on Energy and Natural Resources: ting, pursuant to law, the report of a rule en- Report to accompany the bill (S. 2500) to titled ‘‘Fisheries of the Exclusive Economic sign and manufacture of a cryogenic upper stage launch vehicle engine (DTC 116-98) re- protect the sanctity of contracts and leases Zone Off Alaska; Pollock in Statistical Area entered into by surface patent holders with 630 in the Gulf of Alaska’’ (I.D. 092598A) received on October 9, 1998; to the Committee on Foreign Relations. respect to coalbed methane gas (Rept. No. ceived on October 9, 1998; to the Committee 105–408). on Commerce, Science, and Transportation. EC–7473. A communication from the Assist- EC–7462. A communication from the Dep- ant Secretary for Legislative Affairs, De- f uty Assistant Administrator for Fisheries, partment of State, transmitting, pursuant to National Oceanic and Atmospheric Adminis- law, notice of a proposed license for the ex- EXECUTIVE REPORT OF tration, Department of Commerce, transmit- port of technical assistance to Singapore for COMMITTEE ting, pursuant to law, the report of a rule en- maintanece of the T-55-L-714A engine on certain CH-47 Chinook helicopters (DTC 129-98) The following executive report of titled ‘‘Atlantic Sea Scallop Fishery; Exten- committee was submitted: sion of Interim Final Rule Implementing received on October 9, 1998; to the Committee Area Closure’’ (RIN0648–AK68) received on on Foreign Relations. By Mr. CAMPBELL, from the Committee October 9, 1998; to the Committee on Com- EC–7474. A communication from the Assist- on Indian Affairs: merce, Science, and Transportation. ant Secretary for Legislative Affairs, De- D. Bambi Kraus, of the District of Colum- EC–7463. A communication from the Direc- partment of State, transmitting, pursuant to bia, to be a Member of the Board of Trustees tor of the Office of Regulatory Management law, notice of a proposed license for the man- of the Institute of American Indian and Alas- and Information, Environmental Protection ufacture of the Longbow Hellfire Missile ka Native Culture and Arts Development for Agency, transmitting, pursuant to law, the Control Interface Group for use in the United a term expiring May 19, 2004. report of a rule regarding pesticide toler- Kingdom AH-64D Apache Program (DTC 137- (The above nomination was reported 98) received on October 9, 1998; to the Com- ances for residues of a certain potatoe fun- with the recommendation that she be gicide (FRL6036–7) received on October 8, mittee on Foreign Relations. EC–7475. A communication from the Assist- confirmed, subject to the nominee’s 1998; to the Committee on Environment and commitment to respond to requests to Public Works. ant Secretary for Legislative Affairs, De- EC–7464. A communication from the Direc- partment of State, transmitting, pursuant to appear and testify before any duly con- tor of the Office of Regulatory Management law, notice of a proposed license for the man- stituted committee of the Senate.) and Information, Environmental Protection ufacture of transmissions for the K95 How- Treaty Doc. 105–1(A) Amended Mines Agency, transmitting, pursuant to law, the itzer and the K1A1 Main Battle Tank in Protocol (Exec. Rept. 105–21). report of a rule entitled ‘‘Hexythiazox; Pes- South Korea (DTC 138-98) received on Octo- ber 9, 1998; to the Committee on Foreign Re- TEXT OF THE COMMITTEE-RECOMMENDED ticide Tolerances for Emergency Exemp- RESOLUTION OF ADVICE AND CONSENT tions’’ (FRL6030–3) received on October 8, lations. EC–7476. A communication from the Assist- 1998; to the Committee on Environment and Resolved (two-thirds of the Senators present ant Secretary for Legislative Affairs, De- Public Works. concurring therein), EC–7465. A communication from the Ad- partment of State, transmitting, pursuant to SECTION 1. SENATE ADVICE AND CONSENT SUB- ministrator of the General Services Adminis- law, notice of a proposed license for the man- JECT TO A RESERVATION, UNDER- tration, transmitting, pursuant to law, a ufacture of TOW 2 missile warheads in Swit- STANDINGS, AND CONDITIONS. prospectus proposing the lease of space to zerland (DTC 142-98) received on October 9, The Senate advises and consents to the house the Uniformed Division of the U.S. Se- 1998; to the Committee on Foreign Relations. ratification of the Amended Mines Protocol EC–7477. A communication from the Assist- cret Service; to the Committee on Environ- (as defined in section 5 of this resolution), ant Secretary for Legislative Affairs, De- ment and Public Works. subject to the reservation in section 2, the EC–7466. A communication from the In- partment of State, transmitting, pursuant to understandings in section 3, and the condi- spector General of the Department of De- law, notice of a proposed license for the ex- tions in section 4. fense, transmitting, pursuant to law, the De- port Model 139A Verticle Launch ASROC SEC. 2. RESERVATION. partment’s report on Superfund Financial Missiles to Japan (DTC 143-98) received on The Senate’s advice and consent to the Transactions for fiscal year 1997; to the Com- October 9, 1998; to the Committee on Foreign ratification of the Amended Mines Protocol mittee on Environment and Public Works. Relations. is subject to the reservation, which shall be EC–7467. A communication from the Sec- f included in the United States instrument of retary of Health and Human Services, trans- REPORTS OF COMMITTEES ratification and shall be binding upon the mitting, pursuant to law, the Department’s President, that the United States reserves report on the effectiveness of providing dis- The following reports of committees the right to use other devices (as defined in ease prevention and health promotion serv- were submitted: Article 2(5) of the Amended Mines Protocol)

VerDate Mar 15 2010 00:42 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00037 Fmt 4624 Sfmt 0634 E:\1998SENATE\S10OC8.REC S10OC8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S12308 CONGRESSIONAL RECORD — SENATE October 10, 1998 to destroy any stock of food or drink that is Amended Mines Protocol may be construed fense has undertaken a substantial program judged likely to be used by an enemy mili- as restricting or affecting in any way non-le- to develop improved mine detection and tary force, if due precautions are taken for thal weapon technology that is designed to clearing technology and has shared this im- the safety of the civilian population. temporarily disable, stun, signal the pres- proved technology with the international SEC. 3. UNDERSTANDINGS. ence of a person, or operate in any other community. The Senate’s advice and consent to the fashion, but not to cause permanent inca- (iii) EXPANSION OF UNITED STATES HUMANI- ratification of the Amended Mines Protocol pacity. TARIAN DEMINING PROGRAMS.—The Depart- is subject to the following understandings, (8) INTERNATIONAL TRIBUNAL JURISDIC- ment of Defense and the Department of which shall be included in the United States TION.—The United States understands that State have significantly expanded their hu- instrument of ratification and shall be bind- the provisions of Article 14 of the Amended manitarian demining programs to train and ing upon the President: Mines Protocol relating to penal sanctions assist the personnel of other countries in de- (1) UNITED STATES COMPLIANCE.—The refer to measures by the authorities of veloping effective demining programs. United States understands that— States Parties to the Protocol and do not au- (B) INTERNATIONAL SUPPORT FOR DEMINING (A) any decision by any military com- thorize the trial of any person before an INITIATIVES.—The Senate urges the inter- mander, military personnel, or any other international criminal tribunal. The United national community to join the United person responsible for planning, authorizing, States shall not recognize the jurisdiction of States in providing significant financial and or executing military action shall only be any international tribunal to prosecute a technical assistance to humanitarian judged on the basis of that person’s assess- United States citizen for a violation of the demining programs, thereby making a con- ment of the information reasonably avail- Protocol or the Convention on Conventional crete and effective contribution to the effort able to the person at the time the person Weapons. to reduce the grave problem posed by the in- planned, authorized, or executed the action (9) TECHNICAL COOPERATION AND ASSIST- discriminate use of non-self-destructing under review, and shall not be judged on the ANCE.—The United States understands that— landmines. basis of information that comes to light (A) no provision of the Protocol may be (4) LIMITATION ON THE SCALE OF ASSESS- after the action under review was taken; and construed as affecting the discretion of the MENT.— (B) Article 14 of the Amended Mines Pro- United States to refuse assistance or to re- (A) LIMITATION ON ASSESSMENT FOR COST OF tocol (insofar as it relates to penal sanc- strict or deny permission for the export of IMPLEMENTATION.—Notwithstanding any pro- tions) shall apply only in a situation in equipment, material, or scientific or techno- vision of the Amended Mines Protocol, and which an individual— logical information for any reason; and subject to the requirements of subparagraphs (i) knew, or should have known, that his (B) the Amended Mines Protocol may not (B) and (C), the portion of the United States action was prohibited under the Amended be used as a pretext for the transfer of weap- annual assessed contribution for activities Mines Protocol; ons technology or the provision of assistance associated with any conference held pursu- (ii) intended to kill or cause serious injury to the military mining or military counter- ant to Article 13 of the Amended Mines Pro- to a civilian; and mining capabilities of a State Party to the tocol may not exceed $1,000,000. (iii) knew or should have known, that the Protocol. (B) RECALCULATION OF LIMITATION.— person he intended to kill or cause serious SEC. 4. CONDITIONS. (i) IN GENERAL.—On January 1, 2000, and at injury was a civilian. The Senate’s advice and consent to the 3-year intervals thereafter, the Adminis- (2) EFFECTIVE EXCLUSION.—The United ratification of the Amended Mines Protocol trator of General Services shall prescribe an States understands that, for the purposes of is subject to the following conditions, which amount that shall apply in lieu of the Article 5(6)(b) of the Amended Mines Pro- shall be binding upon the President: amount specified in subparagraph (A) and tocol, the maintenance of observation over (1) PURSUIT DETERRENT MUNITION.— that shall be determined by adjusting the avenues of approach where mines subject to (A) UNDERSTANDING.—The Senate under- last amount applicable under that subpara- this paragraph are deployed constitutes one stands that nothing in the Amended Mines graph to reflect the percentage increase by acceptable form of monitoring to ensure the Protocol restricts the possession or use of which the Consumer Price Index for the pre- effective exclusion of civilians. the Pursuit Deterrent Munition, which is in ceding calendar year exceeds the Consumer (3) HISTORIC MONUMENTS.—The United compliance with the provisions in the Tech- Price Index for the calendar year three years States understands that Article 7(1)(i) of the nical Annex and which constitutes an essen- previously. Amended Mines Protocol refers only to a tial military capability for the United States (ii) CONSUMER PRICE INDEX DEFINED.—In limited class of objects that, because of their Armed Forces. this subparagraph, the term ‘‘Consumer clearly recognizable characteristics and be- (B) CERTIFICATION.—Prior to deposit of the Price Index’’ means the last Consumer Price cause of their widely recognized importance, United States instrument of ratification, the Index for all-urban consumers published by constitute a part of the cultural or spiritual President shall certify to the Committee on the Department of Labor. heritage of peoples. Armed Services and the Committee on For- (C) ADDITIONAL CONTRIBUTIONS REQUIRING (4) LEGITIMATE MILITARY OBJECTIVES.—The eign Relations of the Senate and to the CONGRESSIONAL APPROVAL.— United States understands that an area of Speaker of the House of Representatives that (i) AUTHORITY.—Notwithstanding subpara- land itself can be a legitimate military ob- the Pursuit Deterrent Munition shall con- graph (A), the President may furnish addi- jective for the purpose of the use of land- tinue to remain available for use by the tional contributions for activities associated mines, if its neutralization or denial, in the United States Armed Forces at least until with any conference held pursuant to Article circumstances applicable at the time, offers January 1, 2003, unless an effective alter- 13 of the Amended Mines Protocol which a military advantage. native to the munition becomes available. would otherwise be prohibited under sub- (5) PEACE TREATIES.—The United States (C) EFFECTIVE ALTERNATIVE DEFINED.—For paragraph (A) if— understands that the allocation of respon- purposes of subparagraph (B), the term ‘‘ef- (I) the President determines and certifies sibilities for landmines in Article 5(2)(b) of fective alternative’’ does not mean a tactic in writing to the appropriate committees of the Amended Mines Protocol does not pre- or operational concept in and of itself. Congress that the failure to make such conclude agreement, in connection with peace (2) EXPORT MORATORIUM.—The Senate— tributions would seriously affect the na- treaties or similar arrangements, to allocate (A) recognizes the expressed intention of tional interest of the United States; and responsibilities under that Article in a man- the President to negotiate a moratorium on (II) Congress enacts a joint resolution ap- ner that respects the essential spirit and the export of anti-personnel mines; and proving the certification of the President purpose of the Article. (B) urges the President to negotiate a uni- under subclause (I). (6) BOOBY-TRAPS AND OTHER DEVICES.—For versal ban on the transfer of those mines (ii) STATEMENT OF REASONS.—Any certifi- the purposes of the Amended Mines Protocol, that does not include any restriction on any cation made under clause (i) shall be accom- the United States understands that— mine that is primarily designed to be ex- panied by a detailed statement setting forth (A) the prohibition contained in Article ploded by the presence, proximity, or con- the specific reasons therefor and the specific 7(2) of the Amended Mines Protocol does not tact of a vehicle, as opposed to a person and activities associated with any conference preclude the expedient adaptation or adapta- that is equipped with an anti-handling de- held pursuant to Article 13 of the Amended tion in advance of other objects for use as vice, as defined in the Amended Mines Pro- Mines Protocol to which the additional con- booby-traps or other devices; tocol, or a tilt rod or magnetic influence sen- tributions would be applied. (B) a trip-wired hand grenade shall be con- sor, such mine not being considered an anti- (5) UNITED STATES AUTHORITY FOR TECH- sidered a ‘‘booby-trap’’ under Article 2(4) of personnel mine despite being so equipped. NICAL COOPERATION AND ASSISTANCE.—Not- the Amended Mines Protocol and shall not (3) HUMANITARIAN DEMINING ASSISTANCE.— withstanding any provision of the Amended be considered a ‘‘mine’’ or an ‘‘anti-per- (A) FINDINGS.—The Senate makes the fol- Mines Protocol, no funds may be drawn from sonnel mine’’ under Article 2(1) or Article lowing findings: the Treasury of the United States for any 2(3), respectively; and (i) UNITED STATES EFFORTS.—The United payment or assistance (including the trans- (C) none of the provisions of the Amended States contributes more than any other fer of in-kind items) under Article 11 or Arti- Mines Protocol, including Article 2(5), ap- country to the worldwide humanitarian cle 13(3)(d) of the Amended Mines Protocol plies to hand grenades other than trip-wired demining effort, having expended more than without statutory authorization and appro- hand grenades. $153,000,000 on such efforts since 1993. priation by United States law. (7) NON-LETHAL CAPABILITIES.—The United (ii) DEVELOPMENT OF DETECTION AND CLEAR- (6) FUTURE NEGOTIATION OF WITHDRAWAL States understands that nothing in the ING TECHNOLOGY.—The Department of De- CLAUSE.—It is the sense of the Senate that,

VerDate Mar 15 2010 00:42 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00038 Fmt 4624 Sfmt 0634 E:\1998SENATE\S10OC8.REC S10OC8 mmaher on DSKCGSP4G1 with SOCIALSECURITY October 10, 1998 CONGRESSIONAL RECORD — SENATE S12309 in negotiations on any treaty containing an 1988, and condition (8) of the resolution of from damage resulting from violations of arms control provision, United States nego- ratification of the CFE Flank Document, ap- that Act, and for other purposes; to the Com- tiators should not agree to any provision proved by the Senate on May 14, 1997. mittee on Environment and Public Works. that would have the effect of inhibiting the (14) PRIMACY OF THE UNITED STATES CON- By Mr. DOMENICI (for himself and Mr. United States from withdrawing from the STITUTION.—Nothing in the Amended Mines BINGAMAN): arms control provisions of that treaty in a Protocol requires or authorizes the enact- S. 2621. A bill to authorize the acquisition timely fashion in the event that the supreme ment of legislation, or the taking of any of the Valles Caldera currently managed by national interests of the United States have other action, by the United States that is the Baca Land and Cattle Company, to pro- been jeopardized. prohibited by the Constitution of the United vide for an effective land and wildlife man- (7) PROHIBITION ON DE FACTO IMPLEMENTA- States, as interpreted by the United States. agement program for this resource within TION OF THE OTTAWA CONVENTION.—Prior to SEC. 5. DEFINITIONS. the Department of Agriculture through the the deposit of the United States instrument As used in this resolution: private sector, and for other purposes; to the of ratification, the President shall certify to (1) AMENDED MINES PROTOCOL OR PRO- Committee on Energy and Natural Re- Congress that— TOCOL.—The terms ‘‘Amended Mines Pro- sources. (A) the President will not limit the consid- tocol’’ and ‘‘Protocol’’ mean the Amended By Mr. ROTH (for himself, Mr. MOY- eration of alternatives to United States anti- Protocol on Prohibitions or Restrictions on NIHAN, Mr. CHAFEE, Mr. BAUCUS, Mr. personnel mines or mixed anti-tank systems the Use of Mines, Booby-Traps and Other De- GRASSLEY, Mr. ROCKEFELLER, Mr. solely to those that comply with with the vices, together with its Technical Annex, as HATCH, Mr. BREAUX, Mr. D’AMATO, Ottawa Convention; and adopted at Geneva on May 3, 1996 (contained Mr. CONRAD, Mr. MURKOWSKI, Mr. (B) in pursuit of alternatives to United in Senate Treaty Document 105-1). GRAHAM, Mr. JEFFORDS, Ms. States anti-personnel mines, or mixed anti- (2) CFE FLANK DOCUMENT.—The term ‘‘CFE MOSELEY-BRAUN, Mr. MACK, Mr. tank systems, the United States shall seek Flank Document’’ means the Document BRYAN, and Mr. KERREY): to identify, adapt, modify, or otherwise de- Agreed Among the States Parties to the S. 2622. A bill to amend the Internal Rev- velop only those technologies that— Treaty on Conventional Armed Forces in Eu- enue Code of 1986 to extend certain expiring (i) are intended to provide military effec- rope (CFE) of November 19, 1990, done at Vi- provisions, and for other purposes; to the tiveness equivalent to that provided by the enna on May 31, 1996 (Treaty Document 105– Committee on Finance. relevant anti-personnel mine, or mixed anti- 5). By Mr. THOMPSON (for himself, Mr. tank system; and (3) CONVENTION ON CONVENTIONAL WEAP- LIEBERMAN, Mr. BROWNBACK, Mr. (ii) would be affordable. ONS.—The term ‘‘Convention on Conven- ROTH, and Mr. STEVENS): (8) CERTIFICATION WITH REGARD TO INTER- tional Weapons’’ means the Convention on S. 2623. A bill to increase the efficiency and NATIONAL TRIBUNALS.—Prior to the deposit of effectiveness of the Federal Government, and the United States instrument of ratification, Prohibitions or Restriction on the Use of Certain Conventional Weapons Which May for other purposes; to the Committee on the President shall certify to Congress that Governmental Affairs. with respect to the Amended Mines Protocol, be Deemed to be Excessively Injurious or to Have Indiscriminate Effects, done at Geneva By Mr. DOMENICI: the Convention on Conventional Weapons, or S. 2624. A bill to establish a program for any future protocol or amendment thereto, on October 10, 1980 (Senate Treaty Document 103–25). training residents of low-income rural areas that the United States shall not recognize for, and employing the residents in, new tele- the jurisdiction of any international tribunal (4) OTTAWA CONVENTION.—The term ‘‘Ot- tawa Convention’’ means the Convention on communications industry jobs located in the over the United States or any of its citizens. rural areas, and for other purposes; to the (9) TACTICS AND OPERATIONAL CONCEPTS.—It the Prohibition of the Use, Production, Committee on Labor and Human Resources. is the sense of the Senate that development, Stockpiling, and Transfer of Anti-Personnel adaptation, or modification of an existing or Mines and on Their Destruction, opened for f new tactic or operational concept, in and of signature at Ottawa December 3–4, 1997 and at the United Nations Headquarters begin- STATEMENTS ON INTRODUCED itself, is unlikely to constitute an acceptable BILLS AND JOINT RESOLUTIONS alternative to anti-personnel mines or mixed ning December 5, 1997. anti-tank systems. (5) UNITED STATES INSTRUMENT OF RATIFICA- By Mr. CHAFEE (for himself, Mr. (10) FINDING REGARDING THE INTERNATIONAL TION.—The term ‘‘United States instrument MACK, and Mr. LIEBERMAN): HUMANITARIAN CRISIS.—The Senate finds of ratification’’ means the instrument of S. 2617. A bill to amend the Clean Air that— ratification of the United States of the Amended Mines Protocol. Act to authorize the President to enter (A) the grave international humanitarian into agreements to provide regulatory crisis associated with anti-personnel mines f has been created by the indiscriminate use of credit for voluntary early action to mines that do not meet or exceed the speci- INTRODUCTION OF BILLS AND mitigate greenhouse gas emissions; to fications on detectability, self-destruction, JOINT RESOLUTIONS the Committee on Environment and and self-deactivation contained in the Tech- The following bills and joint resolu- Public Works. nical Annex to the Amended Mines Protocol; tions were introduced, read the first CREDIT FOR EARLY ACTION ACT OF 1998 and (B) United States mines that do meet such and second time by unanimous con- Mr. CHAFEE. Mr. President, I am specifications have not contributed to this sent, and referred as indicated: proud to join with Senators MACK and problem. By Mr. CHAFEE (for himself, Mr. LIEBERMAN today to introduce the (11) APPROVAL OF MODIFICATIONS.—The Sen- MACK, and Mr. LIEBERMAN): Credit for Early Action Act of 1998. ate reaffirms the principle that any amend- S. 2617. A bill to amend the Clean Air Act This bipartisan legislation is designed ment or modification to the Amended Mines to authorize the President to enter into to encourage voluntary, meaningful, Protocol other than an amendment or modi- agreements to provide regulatory credit for and early efforts by industry to reduce fication solely of a minor technical or ad- voluntary early action to mitigate green- their emissions of greenhouse gases. ministrative nature shall enter into force house gas emissions; to the Committee on with respect to the United States only pur- Environment and Public Works. This is a bill to address the threat of suant to the treaty-making power of the By Mr. MCCAIN: global climate change. President, by and with the advice and con- S. 2618. A bill to require certain multilat- Before I get into the details of this sent of the Senate, as set forth in Article II, eral development banks and other lending in- legislative proposal, let me spend a few section 2, clause 2 of the Constitution of the stitutions to implement independent third- moments discussing the science of cli- United States. party procurement monitoring, and for other mate change. (12) FURTHER ARMS REDUCTIONS OBLIGA- purposes; to the Committee on Foreign Rela- Human influence on the global cli- TIONS.—The Senate declares its intention to tions. mate in an extraordinarily complex consider for approval an international agree- By Mr. DASCHLE: ment that would obligate the United States S. 2619. A bill to amend title 38, United matter that has undergone more than a to reduce or limit the Armed Forces or ar- States Code, to improve access of veterans to century of research. Indeed, in an 1896 maments of the United States in a militarily emergency medical care in non-Department lecture delivered to the Stockholm significant manner only pursuant to the of Veterans Affairs medical facilities; to the Physics Society by the Nobel Prize- treaty-making power as set forth in Article Committee on Veterans Affairs. winning chemist, Svante Arrhenius, it II, section 2, clause 2 of the Constitution of By Mr. ROBB: was predicted that large increases in the United States. S. 2620. A bill to amend the Federal Water carbon dioxide (CO2) would result in a (13) TREATY INTERPRETATION.—The Senate Pollution Control Act to establish a Na- corresponding warming of the globe. affirms the applicability to all treaties of tional Clean Water Trust Fund and to au- the constitutionally-based principles of trea- thorize the Administrator of the Environ- Professor Arrhenius was the first to ty interpretation set forth in condition (1) of mental Protection Agency to use amounts in predict that large increases in CO2 the resolution of ratification of the INF the Fund to carry out projects to promote would result in a warming of the globe. Treaty, approved by the Senate on May 27, the recovery of waters of the United States What have the world’s scientists told

VerDate Mar 15 2010 00:42 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00039 Fmt 4624 Sfmt 0634 E:\1998SENATE\S10OC8.REC S10OC8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S12310 CONGRESSIONAL RECORD — SENATE October 10, 1998 us at different intervals over the last climate scientists concluded, for the plicable within the United States. The one hundred years, since Mr. Arrhenius first time, that man is influencing the credits would be usable beginning in identified the warming effects of CO2? global climate system. That conclu- the first five-year budget period (2008– In 1924, a U.S. physicist speculated sion, while controversial in some quar- 2012) under the Kyoto Protocol, if the that industrial activity would double ters, was endorsed unanimously by the Kyoto Protocol is ratified. If the Pro- atmospheric CO2 in five hundred years, governments of the ninety-six coun- tocol is not ratified, and we end up around the year 2424. Current projec- tries involved in the panel’s efforts. with a domestic program to regulate or tions, however, call for a doubling Are these forecasted outcomes a cer- otherwise control greenhouse gas emis- sometime before 2050—some four hun- tainty? They are not. The predictions sions, the credits would be usable in dred years earlier than predicted just of climate change are indeed based on that program. seventy years ago! numerous variables. Although sci- This sort of approach makes sense for In 1957, scientists from the Scripps entists are improving the state of their a wide variety of reasons. Encouraging Institute of Oceanography reported for knowledge at a rapid pace, we still early reductions can begin to slow the the first time that much of the CO2 have a lot to learn about the role of the rate of buildup of greenhouse gases in emitted into the atmosphere is not ab- sun, clouds and oceans, for example. the atmosphere, helping to minimize sorbed by the oceans as some had ar- The question is, will we ever have ab- the potential environmental risks of gued, leaving significant amounts in solute certainty? Will we ever be able continued warming. Given the lon- the atmosphere. They are said to have to eliminate all of the variables? The gevity of many climate gases, which called carbon dioxide emissions ‘‘a overwhelming majority of independent, continue to trap heat in the atmos- large-scale geophysical experiment’’ peer-reviewed scientific studies indi- phere for a century or more, it just with the Earth’s climate. cate that we do not have such a luxury. makes sense to encourage practical ac- In 1967, the first reliable computer By the time we finally attain absolute tions now. simulation calculated that global aver- certainty, it would likely take cen- By guaranteeing companies credit for age temperatures may increase by turies to reverse atmospheric damage voluntary early reductions, the bill more than four degrees Fahrenheit and oceanic warming. would allow companies to protect when atmospheric CO2 levels are double Mr. President, I am not alone in this themselves against the potential for that of preindustrial times. In 1985, a thinking. There are an increasing num- steep reduction requirements or exces- conference sponsored by the United Na- ber of business leaders in our country sive costs in the future. For companies tions Environment Program (UNEP), who have arrived at the same conclu- that want to reduce their greenhouse the World Meteorological Organization sion that we need to act swiftly. gas emissions, providing credit for ac- (WMO), and the International Council In a ‘‘dear colleague’’ letter sent out tion now adds years to any potential of Scientific Unions forged a consensus this week under my signature, I re- compliance schedule, allowing compa- of the international scientific commu- peated a remarkable statement issued nies to spread costs over broader time nity on the issue of climate change. by an impressive group of companies periods. A focus on early reductions The conference report warned that that have joined with the newly estab- can help stimulate the American some future warming appears inevi- lished Pew Center on Climate Change. search for strategies an technologies table due to past emissions, regardless American Electric Power, Boeing, BP that are needed worldwide. Develop- of future actions, and recommended America, Enron, Lockheed Martin, 3M, ment of such strategies and tech- consideration of a global treaty to ad- Sun, United Technologies, Toyota, nologies can improve American com- dress climate change. Weyerhaeuser, and several others said In 1987, an ice core from Antarctica, petitiveness in the $300 billion dollar that, ‘‘we accept the views of most sci- analyzed by French and Russian sci- global environmental marketplace. entists that enough is known about the This ‘‘credit’’ program may also entists, revealed an extremely close science and environmental impacts of make the greenhouse gas reductions correlation between CO2 and temperature going back more than one hundred climate change for us to take actions achieved before regulations are in thousand years. In 1990, an appeal to address its consequences.’’ place financially valuable to the com- The legislation to be introduced signed by forty-nine Novel prize win- panies who make such reductions. today by Senator MACK, Senator LIE- ners and seven hundred members of the Given the likely inclusion of market BERMAN and I proposes an exciting National Academy of Science stated, based approaches to any eventual do- ‘‘There is broad agreement within the framework that would appropriately mestic regulatory requirements, simi- scientific community that amplifi- recognize real and immediate action to lar to the successful acid rain program cation of the Earth’s natural green- combat climate change. While the cli- of the 1990 Clean Air Act, credit earned house effect by the buildup of various mate debate will indeed continue over could be traded or sold to help other gases introduced by human activity the next few years, we strongly believe companies manage their own reduction has the potential to produce dramatic that there is a voluntary, incentive- efforts. changes in climate . . . only by taking based approach which can be imple- Under a ‘‘no credit’’ approach, the action now can be ensure that future mented now. Congressional approval of status quo, it is more likely that early generations will not be put at risk.’’ this approach, which the three of us reduction companies will be penalized Also in 1990, seven hundred and forty- and others will work for early next if greenhouse gas reductions are ulti- seven participants from one hundred year, will provide the certainty nec- mately required, because their com- sixteen countries took part in the Sec- essary to encourage companies to move petitors who wait to reduce will get ond world Climate Conference. The forward with practical, near-term credit for later reductions. Such a ‘‘no conference statement reported that, emission reductions. credit’’ approach could even create per- ‘‘. . . if the increase of greenhouse gas Specifically, this legislation would verse incentives to delay investments concentrations is not limited, the pre- provide a mechanism by which the until emissions reductions would be dicted climate change would place President can enter into binding green- credited. stresses on natural and social systems house gas reduction agreements with In anticipation of a potential global unprecedented in the past ten thousand entities operating in the United States. emissions market, decisions re being years.’’ Once executed, these agreements will made now by entrepreneurial compa- Finally, Mr. President, in 1995, the provide credits for voluntary green- nies and countries. For example, Rus- Intergovernmental Panel on Climate house gas reductions effected by those sia and Japan have already concluded a Change, representing the consensus of entities before 2008, or whenever we trade of greenhouse gas emission cred- climate scientists worldwide, con- might have an imposition of any do- its. Private companies such as Niagara- cluded that ‘‘. . . the balance of evi- mestic or international emission re- Mohawk and Canada-based Suncor are dence suggests that there is a discern- duction requirements. moving forward with cross-boundary ible human influence on global cli- Importantly, this program is de- trades. Aggressive global energy com- mate.’’ signed to work within the framework panies, such as British Petroleum, This last development is significant, of whatever greenhouse gas control re- AEP, and PacifiCorp are already imple- because the overwhelming majority of quirement may eventually become ap- menting agreements in Central and

VerDate Mar 15 2010 00:42 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00040 Fmt 4624 Sfmt 0634 E:\1998SENATE\S10OC8.REC S10OC8 mmaher on DSKCGSP4G1 with SOCIALSECURITY October 10, 1998 CONGRESSIONAL RECORD — SENATE S12311 South America—sequestering carbon both, are enormous. And the con- ∑ Mr. LIEBERMAN. Mr. President, I and developing credits against emis- sequences of actions targeted at chang- am delighted to join today with my sions—by protecting rain forests. ing our patterns of energy use can be colleagues Senator CHAFEE, the chair- Mr. President, America can and dramatic. man of the Environment and Public should reward companies that take But uncertainty cuts two ways, and Works Committee, and Senator MACK such positive steps to position them- the possibility always exists that some in introducing this legislation. It will selves, and the US, for the environ- of these projections about impacts provide credit, under any future green- mental and economic future. could be more right than wrong. Per- house gas reduction systems we may On the international side, passage by haps then it makes sense to provide adopt, to companies who act now to re- the U.S. Congress of a program to help some appropriate encouragement, so duce their emissions of greenhouse stimulate early action will be clear ex- that those who want to invest in im- gases. This is a voluntary, market- ample of American leadership and re- proved efficiency, those who want to based approach which is a win-win situ- sponsibility. Developing countries cur- find ways to make cars and factories ation for both American businesses and rently argue that nations such as the and power production cleaner, those the environment. Enactment of this United States, with huge advantages in companies can receive some encourage- legislation will provide the certainty quality of life and dramatically higher ment, not based on government fiat or necessary to encourage companies to per capita emissions of green house handout, but based on getting credit move forward with emission reductions gases, should take a leadership role in for their own initiative and actions. now. I’m particularly pleased that the the reduction of greenhouse gas emis- The environmental result will likely be legislation grows out of principles de- sions. And they argue that developing some lessening of the potential prob- veloped in a dialog between the Envi- countries should not be asked to take lems associated with possible global ronmental Defense Fund and a number steps until the U.S. begins to move for- warming, and that just makes sense. of major industries. ward. This bill can work directly to There is, of course, another uncer- The point of this legislation is sim- change that situation, therefore re- tainty that gives me pause as well, and ple. Many companies want to move for- moving a barrier to essential devel- that serves as another strong reason ward now to reduce their greenhouse oping country progress. for my interest in this bill. It is clear gas emissions. They don’t want to wait There it is, Mr. President. We are to me today that there is no desire on until legislation requires them to here today because we believe that cli- the part of this Congress to legislate make these reductions. For some com- mate change presents a serious threat. requirements on carbon dioxide or any panies reducing greenhouse gases We believe it makes sense to get start- of the other ‘‘greenhouse gases.’’ I makes good economic sense because ed now. And, as many leading Amer- think that is the correct position. adopting cost-effective solutions can ican companies do, we believe that But we cannot know today what actually save them money by improv- there are sensible, fair and voluntary some future Congress, perhaps a decade ing the efficiency of their operations. methods to get on the right track. away, might decide to do. Perhaps the Companies recognize if they reduce We encourage our colleagues to use science will become more compelling. their greenhouse gas emissions now the time between now and next Janu- Perhaps the majority will shift back to they will be able to add years to any ary to review this legislation carefully. a more regulatory minded party. Per- potential compliance schedule, allow- We are open to suggestions. Most im- haps a future Senate will decide to rating companies to spread their costs portantly, we are looking for others to ify the Kyoto Protocol. Perhaps a fu- over broader time periods. Acting now join us in this effort. ture administration and a future ma- can help U.S. companies protect them- ∑ Ms. MACK. Mr. President, as an jority will combine to put a regulatory selves against the potential for signifi- original cosponsor of the Credit for structure in place that will require cant reductions that may be required Early Action Act, I rise to congratu- substantial reductions of these gases. in the future. This bill ensures they late Senator CHAFEE on its introduc- And while we may oppose such action will be credited in future reduction tion, as well as the other original co- today, we cannot know the outcome of proposals for action now. sponsor, Senator LIEBERMAN, and to this future debate. Early action by U.S. companies will make several points about the bill. Given this regulatory uncertainty, I also have an enormous benefit for the The purpose of the act is simple. It is think a compelling argument can be environment. Early reductions can to encourage and reward voluntary ac- made to provide protection for compa- begin to slow the rate of buildup of tions which businesses may take to re- nies today, so that they are protected greenhouse gases in the atmosphere, duce emissions of ‘‘greenhouse gases’’ against the possibility of future re- helping to minimize the environmental such as carbon dioxide. It would not requirements. What this bill will do is risks of continued global warming. quire actions, but it would provide en- just that. By allowing companies to Given that once emitted, many climate couragement in the form of credit, earn credit for actions that they take change gases continue to trap head for credit that could be used by companies over the next few years, the bill will a century or more in the atmosphere, to manage future regulatory require- make sure that if a regulator comes to it just makes sense to encourage prac- ments, or in a market-based approach, see them in the future, they can say, ‘‘I tical action now. traded or sold to other companies as already did my part.’’ Companies can Climate change is neither an abstrac- they worked to meet their own obliga- make decisions based on their own best tion nor the object of a science fiction tions. interest, they can work to improve effi- writer’s imagination. It is real and af- Given the uncertainty that surrounds ciency and reduce waste. And if this fects us all. More than 2,500 of the the discussion of greenhouse gases and bill becomes law, they can get credit world’s best scientific and technical ex- global warming, I can understand why for those actions against any future perts have linked the increase of green- some may question the need for such a regulatory controls on greenhouse house gases to at least some of the in- bill. As one who is not convinced that gases. That seems like a good idea to crease in sea level, temperature and we understand this issue well enough, I me. rainfall experienced worldwide in this can understand that question. In fact, In closing Mr. President, I again century. Last year was the warmest it is precisely because of the uncer- want to congratulate Senator CHAFEE, year on record, and 9 of the last 11 tainty that I think such a bill makes along with our other original co-spon- years were among the warmest ever re- sense. sor Senator LIEBERMAN, for this corded. Of course there is a great deal of un- thoughtful, balanced approach to the The point of this legislation is to pro- certainty surrounding such possible re- uncertainty presented by the climate vide an incentive for companies that sults, and frankly, as I said, I am not change issue. I am proud to be an origi- want to make voluntary early reduc- convinced that we know enough yet. nal cosponsor of this bill, and I want to tion in emissions of greenhouse gases The complexities and uncertainties as- urge my colleagues to take a good look by guaranteeing that these companies sociated with trying to understand the at this approach so that we can begin will receive credit, once binding re- vast interactions of our climate, our to move forward in earnest in the next quirements begin, for voluntary reduc- atmosphere and our human impact on Congress.∑ tions they have made before 2008. These

VerDate Mar 15 2010 00:42 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00041 Fmt 4624 Sfmt 0634 E:\1998SENATE\S10OC8.REC S10OC8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S12312 CONGRESSIONAL RECORD — SENATE October 10, 1998 credits will enable US companies to nations are ill-advised to ignore cor- purpose, foreign economic aid yields add years to any potential compliance ruption and wrongdoing in neighboring short and long term benefits to U.S. schedule for reductions, allowing them countries. businesses. Direct foreign aid assists to spread costs over broader time peri- The U.S. is a vital part of the global developing nations to develop their in- ods. These credits may also be finan- economy. We cannot afford to look the frastructure. A developed infrastruc- cially valuable to companies who make other way when we see bribery and cor- ture is vital to creating and sustaining the reductions. Credits earned likely ruption running rampant in other a modern dynamic economy. Robust could be traded or sold to help other countries. Bribery and corruption new economies create new markets for companies manage their own reduction abroad undermine the U.S. goals of U.S. businesses to export their goods requirements. A focus on early reduc- promoting democracy and account- and services. Exports are key to the tions can also help stimulate the ability, fostering economic develop- U.S. role in the constantly expanding search for and use of new, innovative ment and trade liberalization, and and increasingly competitive global strategies and technologies that are achieving a level playing field through- economy. Emerging economies of needed to help companies both in this out the world for American businesses. today become our trading partners of country and worldwide meet their re- Developing nations desperately need tomorrow. However, foreign economic duction requirements in a cost-effec- foreign economic assistance to break assistance will only promote economic tive manner. Development of such the devastating cycle of poverty and development if it is used for its in- strategies and technologies can im- dependence. tended purpose, and not to line the prove American competitiveness in the The United States is increasingly pockets of foreign bureaucrats and more than $300 billion global environ- called upon to lead multilateral assist- their well-connected political allies. mental marketplace. ance efforts through its participation The current laws and procedures de- I’m pleased that this legislation in various lending institutions. How- signed to detect and deter corruption builds on section 1605(b) of the Energy ever, it is critical that we take steps to after the fact are inadequate and mean- Policy Act which allowed companies to ensure that the American taxpayer dol- ingless. This bill seeks to ensure that voluntarily record their emissions in lars are being used appropriately. The U.S. taxpayers’ hard-earned dollars greenhouse gas emissions, which I Fair Competition in Foreign Commerce contributed to international projects worked hard to include in the Energy Act of 1998 is designed to decrease the are used appropriately, by detecting Policy Act. stifling effects of bribery and corrup- and eliminating bribery and corruption Mr. President, the debate about cli- tion in international development con- before they can taint the integrity of mate change is too often vested—and I tracts. The Act will achieve this objec- these vital international projects. Past believe wrongly so—in false choices be- tive by mandating that multilateral experience illustrates that it is ineffec- tween scientific findings, common lending institutions require that native to attempt to reverse waste, fraud, sense, business investments and envi- tions receiving U.S. economic assist- and abuse in large scale foreign infra- ronmental awareness. The approach of ance subject their international devel- structure projects, once the abuse has this bill again demonstrates that these opment projects to independent third- already begun. Therefore, it is vital to are not mutually exclusive choices, but party procurement monitoring, and detect the abuses before they occur. highly compatible goals.∑ other substantive procurement re- The Fair Competition in Foreign forms. By Mr. MCCAIN. By decreasing bribery and corruption Commerce Act of 1998 requires the S. 2618. a bill to require certain mul- in international development procure- United States Government, through its tilateral development banks and other ments, this legislation will (1) enable participation in the multilateral lend- leading institutions to implement inde- U.S. businesses to become more coming institutions and in its disburse- pendent third party procurement moni- petitive when bidding against foreign ment of non-humanitarian foreign as- toring, and for other purposes; to the firms which secure government con- sistance funds, to: (1) require the re- Committee on Foreign Relations. tracts through bribery and corruption; cipient international financial institu- THE FAIR COMPETITION IN FOREIGN COMMERCE (2) encourage additional direct invest- tion to adopt an anti-corruption plan ACT OF 1998 ment to developing nations, thus in- that requires the aid recipient to use ∑ Mr. MCCAIN. Mr. President, I am creasing their economic growth, and (3) independent third-party procurement proud to introduce the Fair Competi- increase opportunities for U.S. busi- monitoring services, at each stage of tion in Foreign Commerce Act of 1998, nesses to export to these nations as the procurement process, to ensure to address the serious problem of their economies expand and mature. openness and transparency in govern- waste, fraud and abuse, resulting from Multilateral lending efforts are only ment procurements, and (2) to require bribery and corruption in international effective in spurring economic develop- the recipient nation to institute spe- development projects. This legislation ment if the funds are used to further cific strategies for minimizing corrup- will set conditions for U.S. funding the intended development projects. The tion and maximizing transparency in through multilateral development American taxpayers make substantial procurements at each stage of the pro- banks. These conditions will require contributions to the International curement process. the country receiving aid to adopt sub- Bank for Reconstruction and Develop- If these criteria are not met, the leg- stantive procurement reforms, and ment, the International Development islation directs the Secretary of the independent third-party procurement Association, the International Finance Treasury to instruct the United States monitoring of their international de- Corporation, the Inter-American De- Executive Directors of the various velopment projects. velopment Bank, the International International Development Banks to During the cold war, banks and gov- Monetary Fund, the Asian Develop- use the voice and vote of the United ernments often looked the other way ment Bank, the Inter-American Invest- States to oppose the lending institu- as pro-western leaders in developing ment Corporation, the North American tion from providing the funds to the countries treated national treasuries Development Bank, and the African nations requesting economic aid which as their personal treasure troves. Infor- Development Fund. These contribu- do not satisfy the procurement reforms mation technologies and the resulting tions provide significant funding for criteria. This Act has two important global economy have transformed the major international development exceptions. First, it does not apply to world in which we live into a smaller projects. Unfortunately, these inter- assistance to meet urgent humani- and smaller community. For example, national development projects are tarian needs such as providing food, economic turmoil in Indonesia hits often plagued by fraud and corruption, medicine, disaster, and refugee relief. home on Wall Street. Allegations of waste and inefficiency, and other mis- Second, it also permits the President misconduct in the White House nega- use of funding. to waive the funding restrictions with tively impact Wall Street, which This inefficient use of valuable tax- respect to a particular country if mak- causes capital flight to other nation’s payer dollars is bad for the U.S. and ing such funds available is important stock exchanges. In today’s increas- the nation receiving the economic as- to the national security interest of the ingly interdependent global economy, sistance. When used for its intended United States.

VerDate Mar 15 2010 00:42 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00042 Fmt 4624 Sfmt 0634 E:\1998SENATE\S10OC8.REC S10OC8 mmaher on DSKCGSP4G1 with SOCIALSECURITY October 10, 1998 CONGRESSIONAL RECORD — SENATE S12313 Independent third-party procurement nomic expansion. We can ill afford to efforts in the United Nations, the Orga- monitoring is a system where an inde- allow any artificial impediments to our nization of American States, and the pendent third-party conducts a pro- ability to export. Bribery and corrup- Organization for Economic Coopera- gram to eliminate bias, to promote tion, significantly hinder American tion and Development (‘‘OECD’’). The transparency and open competition, businesses’ ability to compete for lu- U.S. was the first country to enact leg- and to minimize fraud and corruption, crative overseas government contracts. islation (the Foreign Corrupt Practices waste and inefficiency and other mis- American businesses are simply not Act) to prohibit its nationals and cor- use of funds in international procure- competitive when bidding against for- porations from bribing foreign public ments. The system does this through eign firms that have bribed govern- officials in international and business an independent evaluation of the tech- ment officials to secure overseas gov- transactions. nical, financial, economic and legal as- ernment contracts. Greater openness However, we must do more. Our cur- pects of each stage of a procurement, and fairness in government procure- rent efforts must expand. The FCPA from the development and issuance of ment will greatly enhance opportuni- prevents U.S. nationals and corpora- technical specifications, bidding docu- ties to compete in the rapidly expand- tions from bribing foreign officials. It ments, evaluation reports and contract ing global economy. Exports equate to does nothing to prevent foreign nation- preparation, to the delivery of goods jobs. Jobs equate to more money in als and corporations from bribing for- and services. This monitoring will take hard-working Americans’ pockets. eign officials to obtain foreign con- place throughout the entire term of the More money in Americans’ pockets tracts. Valuable taxpayer resources are international development project. means more money for Americans to often diverted or squandered because of Mr. President, this system has save and invest in their futures. corrupt officials or the use of non- worked for other governments. Pro- Bribery and corruption also harm the transparent specifications, contract re- curement reforms and third-party pro- country receiving the aid because brib- quirements and the like in inter- curement monitoring resulted in the ery and corruption often inflate the national procurements for goods and governments of Kenya, Uganda, Colom- cost of international development services. Such corrupt practices also bia, and Guatemala experiencing sig- projects. For example, state sponsor- minimize competition and prevent the nificant cost savings in recent procure- ship of massive infrastructure projects recipient nation or agency from receiv- ments. For instance, the Government that are deliberately beyond the re- ing the full value of the goods and serv- of Guatemala experienced an overall quired specification needed to meet the ices for which it bargained. In addition, savings of 48% when it adopted a third- objective is a common example of despite the importance of international party procurement monitoring system, and other procurement reform meas- waste, fraud, and abuse inherent in cor- markets to U.S. goods and services pro- ures, in a recent procurement of phar- rupt procurement practices. Here, the viders, many U.S. companies refuse to maceuticals. cost of corruption is not the amount of participate in international procure- Independent third-party procurement the bribe itself, but the inefficient use ments that may be corrupt. monitoring is effective because it mon- of resources the bribes encourage. This legislation is designed to pro- itors each stage of the procurement Bribery and corruption have short vide a mechanism to ensure, to the ex- process during and prior to each stage’s and long term negative effects upon tent possible, the integrity of the U.S. completion, as opposed to following the nation receiving aid. The short contribution to the multilateral lend- completion of a particular stage of the term effect is that bribery and corrup- ing institutions and other non-humani- procurement process. Independent tion drive up the cost of the infrastruc- tarian U.S. foreign aid. Corrupt inter- third-party procurement monitoring ture project. Companies are forced to national procurements, often funded by also improves transparency and open- increase prices to cover the cost of these multilateral banks, weaken ness in the procurement process. In- bribes they are forced to pay. A 2% democratic institutions and undermine creased transparency helps to minimize bribe on a contract is said to raise the very opportunities that multilat- fraud and corruption, waste and ineffi- costs by 15%. The aggregate or long eral lending institutions were founded ciency, and other misuse of funding, term effect of this type of corruption is to promote. This bill will encourage and promotes competition, thereby that, over time, tax revenues will have and support the development of trans- strengthening international trade and to be raised or diverted from other parent government procurement capac- foreign commerce. more deserving projects to fund the ex- ity, which is vital for emerging democ- Mr. President, bribery and corruption cesses in these projects. Higher taxes racies constructing a government pro- have many victims. Bribery and cor- and the inefficient use of resources curement infrastructure that can sus- ruption hamper vital U.S. interests. both hinder growth. tain market economies in the devel- Both harm consumers, taxpayers, and The World Bank and the IMF both oping world. honest traders who lose contracts, pro- recognize the link between bribery and Mr. President, I am committed to duction, and profits because they corruption, and decreased economic combating the waste, fraud and abuse refuse to offer bribes to secure foreign growth. Recent studies also indicate resulting from bribery and corruption contracts. Bribery and corruption have that high levels of corruption are asso- in international development projects. become a serious problem. A World ciated with low levels of investment Procurement reforms and independent Bank survey of 3,600 firms in 69 coun- and growth. These studies illustrate procurement monitoring are key to po- tries showed 40% of businesses paying that corruption discourages direct in- licing complicated international pro- bribes. More startling is that Germany vestment, which results in decreased curements, which are often plagued by still permits its companies to take a economic growth. Furthermore, cor- corruption, inefficiency and other tax deduction for bribes. A recent com- ruption lessens the effectiveness of in- problems. These problems thwart the ment by Commerce Secretary Daley dustrial policies and encourages busi- economic development purpose of mul- sums up the serious impact of bribery nesses to operate in the unofficial sec- tilateral assistance and make it more and corruption upon American busi- tor in violation of tax and regulatory difficult for U.S. companies to compete nesses ability to compete for foreign laws. Most important, corruption be- for valuable large-scale international contracts: gins a cycle where corruption breeds development projects. Since mid-1994, foreign firms have used more corruption and discourages legiti- Mr. President, on behalf of the mil- bribery to win approximately 180 commercial mate investment. In short, bribery and lions of Americans who will benefit contracts valued at nearly $80 billion. We es- corruption create ‘‘lose lose’’ situation from increased opportunities for U.S. timate that over the past year, American businesses to participate in the global companies have lost at least 50 of these con- for the U.S. and developing nations. tracts, valued at $15 billion. And since many The U.S. recognizes the damaging ef- economy, and the billions of people in of these contracts were for groundbreaking fects bribery and corruption have at developing nations throughout the projects—the kind that produces exports for home and abroad. The U.S. continues world who are desperate for economic years to come—the ultimate cost could be to combat foreign corruption, waste, assistance, I urge my colleagues to sup- much higher.’’ and abuse on many fronts: from prohib- port this legislation and demonstrate Exports will continue to play an in- iting U.S. firms from bribing foreign their continued commitment to the or- creasing role in our continued eco- officials, to leading the anti-corruption derly evolution of the global economy

VerDate Mar 15 2010 00:42 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00043 Fmt 4624 Sfmt 0634 E:\1998SENATE\S10OC8.REC S10OC8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S12314 CONGRESSIONAL RECORD — SENATE October 10, 1998 and the efficient use of American eco- in international procurement through inde- the President determines with such respect nomic assistance. pendent evaluation of the technical, finan- to such country that making funds available Mr. President, I ask unanimous con- cial, economic, and legal aspects of the pro- is important to the national security inter- sent that the text of the bill be printed curement process. est of the United States. Any such deter- (3) INDEPENDENT.—The term ‘‘independent’’ mination shall cease to be effective 6 months in the RECORD. means that the person monitoring the pro- after being made unless the President deter- There being no objection, the bill was curement process does not render any paid mines that its continuation is important to ordered to be printed in the RECORD, as services to private industry and is neither the national security interest of the United follows: owned or controlled by any government or States. S. 2618 government agency. (b) OTHER EXCEPTIONS.—Section 4 shall not Be it enacted by the Senate and House of Rep- (4) EACH STAGE OF PROCUREMENT.—The apply with respect to assistance to— resentatives of the United States of America in term ‘‘each stage of procurement’’ means the (1) meet urgent humanitarian needs (in- Congress assembled, development and issuance of technical speci- cluding providing food, medicine, disaster, fications, bidding documents, evaluation re- and refugee relief); SECTION 1. SHORT TITLE. ports, contract preparation, and the delivery (2) facilitate democratic political reform This Act may be cited as the ‘‘Fair Com- of goods and services. and rule of law activities; petition in Foreign Commerce Act’’. (5) MULTILATERAL DEVELOPMENT BANKS AND (3) create private sector and nongovern- SEC. 2. FINDINGS AND STATEMENT OF PURPOSE. OTHER LENDING INSTITUTIONS.—The term mental organizations that are independent of (a) FINDINGS.—Congress finds that— ‘‘multilateral development banks and other government control; and (1) The United States makes substantial lending institutions’’ means the Inter- (4) facilitate development of a free market contributions and provides significant fund- national Bank for Reconstruction and Devel- economic system.∑ ing for major international development opment, the International Development As- projects through the International Bank for sociation, the International Finance Cor- By Mr. DASCHLE: Reconstruction and Development, the Inter- poration, the Inter-American Development S. 2619. A bill to amend title 38, national Development Association, the Bank, the International Monetary Fund, the United States Code, to improve access International Finance Corporation, the Asian Development Bank, the Inter-Amer- Inter-American Development Bank, the of veterans to emergency medical care ican Investment Corporation, the North in non-Department of Veterans Affairs International Monetary Fund, the Asian De- American Development Bank, and the Afri- velopment Bank, the Inter-American Invest- can Development Fund. medical facilities; to the Committee on ment Corporation, the North American De- SEC. 4. REQUIREMENTS FOR FAIR COMPETITION Veterans’ Affairs. velopment Bank, the African Development IN FOREIGN COMMERCE. THE VETERANS’ ACCESS TO EMERGENCY HEALTH Fund, and other multilateral lending institu- (a) IN GENERAL.—Not later than 180 days CARE ACT OF 1998 tions. after the date of enactment of this Act, the Mr. DASCHLE. Mr. President, as we (2) These international development Secretary of the Treasury shall transmit to near the end of the 105th Congress, I projects are often plagued with fraud, cor- the President and to appropriate committees ruption, waste, inefficiency, and misuse of of Congress a strategic plan for requiring the would again like to voice my frustra- funding. use of independent third-party procurement tion about the fact that the United (3) Fraud, corruption, waste, inefficiency, monitoring and other international procure- States Senate failed to consider and misuse, and abuse are major impediments to ment reforms relating to the United States pass important legislation this year competition in foreign commerce throughout participation in multilateral development that could have greatly benefited the the world. banks and other lending institutions. American people. Unfortunately, the (4) Identifying these impediments after (b) STRATEGIC PLAN.—The strategic plan highway leading to adjournment is lit- they occur is inadequate and meaningless. shall include an instruction by the Secretary (5) Detection of impediments before they of the Treasury to the United States Execu- tered with legislation that should have occur helps to ensure that valuable United tive Director of each multilateral develop- been considered, passed and enacted States resources contributed to important ment bank and lending institution to use the long ago, including efforts to prevent international development projects are used voice and vote of the United States to oppose teen smoking, modernize our public appropriately. the use of funds appropriated or made avail- schools, and increase the minimum (6) Independent third-party procurement able by the United States for any non-hu- wage. monitoring is an important tool for detect- manitarian assistance, until— I am particularly disappointed that (1) the recipient international financial in- ing and preventing such impediments. my colleagues on the other side of the (7) Third-party procurement monitoring stitution has adopted an anticorruption plan includes evaluations of each stage of the pro- that requires the use of independent third- aisle prevented the United States Sen- curement process and assures the openness party procurement monitoring services and ate from considering managed care re- and transparency of the process. ensures openness and transparency in gov- form legislation. Yesterday, Senate Re- (8) Improving transparency and openness ernment procurement; and publicans even prevented us from pro- in the procurement process helps to mini- (2) the recipient country institutes specific ceeding to their own HMO reform bill. mize fraud, corruption, waste, inefficiency, strategies for minimizing corruption and Time and again, the American people and other misuse of funding, and promotes maximizing transparency in each stage of have said they want a comprehensive, the procurement process. competition, thereby strengthening inter- enforceable Patients’ Bill of Rights. national trade and foreign commerce. (c) ANNUAL REPORTS.—Not later than June Toward that goal, several of my Demo- (b) PURPOSE.—The purpose of this Act is to 29th of each year, the Secretary of the Treas- build on the excellent progress associated ury shall report to Congress on the progress cratic colleagues and I introduced the with the Organization on Economic Develop- in implementing procurement reforms made Patients’ Bill of Rights Act of 1998. ment and Cooperation Agreement on Bribery by each multilateral development bank and That legislation addressed a growing and Corruption, by requiring the use of inde- lending institution and each country that re- concern among the American people pendent third-party procurement monitoring ceived assistance from a multilateral development bank or lending institution during about the quality of care delivered by as part of the United States participation in health maintenance organizations. De- multilateral development banks and other the preceding year. (d) RESTRICTIONS ON ASSISTANCE.—Notwith- spite enormous public support for HMO lending institutions and in the disbursement standing any other provision of law, no funds of nonhumanitarian foreign assistance funds. reform, Democratic efforts to consider appropriated or made available for non- the Patients’ Bill of Rights were sty- SEC. 3. DEFINITIONS. humanitarian foreign assistance programs, mied at every turn. (a) DEFINITIONS.—In this Act: including the activities of the Agency for For months, it has been my intention (1) APPROPRIATE COMMITTEES.—The term International Development, may be ex- ‘‘appropriate committees’’ means the Com- pended for those programs unless the recipi- to offer an amendment to the HMO re- mittee on Commerce, Science, and Tech- ent country, multilateral development bank form legislation regarding a serious de- nology of the Senate and the Committee on or lending institution has demonstrated ficiency in veterans’ access to emer- Commerce of the House of Representatives. that— gency health care. I was prepared to do (2) INDEPENDENT THIRD-PARTY PROCUREMENT (1) procurement practices are open, trans- so yesterday. Since the Senate was MONITORING.—The term ‘‘independent third- parent, and free of corruption, fraud, ineffi- again precluded from debating man- party procurement monitoring’’ means a ciency, and other misuse, and aged care reform, however, I would like (2) independent third-party procurement program to— to call attention to this matter before (A) eliminate bias, monitoring has been adopted and is being (B) promote transparency and open com- used by the recipient. the 105th Congress adjourns by intro- petition, and SEC. 5. EXCEPTIONS. ducing the Veterans’ Access to Emer- (C) minimize fraud, corruption, waste, inef- (a) NATIONAL SECURITY INTEREST.—Section gency Health Care Act of 1998 as a sep- ficiency, and other misuse of funds, 4 shall not apply with respect to a country if arate bill. I hope my colleagues will

VerDate Mar 15 2010 00:42 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00044 Fmt 4624 Sfmt 0634 E:\1998SENATE\S10OC8.REC S10OC8 mmaher on DSKCGSP4G1 with SOCIALSECURITY October 10, 1998 CONGRESSIONAL RECORD — SENATE S12315 support this legislation when I intro- in Custer because he was suffering work with my colleagues on both sides duce it again in the 106th Congress, chest pains. He was monitored for sev- of the aisle to ensure that veterans re- when I am confident the United States eral hours before a doctor at the hos- ceive the health care they deserve. Senate will finally have the oppor- pital called the VA Medical Center in Mr. President, I ask unanimous con- tunity to consider meaningful HMO re- Hot Springs and indicated that Edward sent that the text of the bill be printed form legislation. was in need of emergency services. Al- in the RECORD. The problem addressed in this bill though Edward asked repeatedly to be There being no objection, the bill was stems from the fact that veterans who taken to a VA facility, he was trans- ordered to be printed in the RECORD, as rely on the Department of Veterans Af- ported by ambulance to Rapid City Re- follows: fairs (VA) for health care often do not gional Hospital, where he underwent a S. 2619 receive reimbursement for emergency cardiac catheterization and coronary Be it enacted by the Senate and House of Rep- medical care they receive at non-VA artery bypass grafting. Because the resentatives of the United States of America in facilities. According to the VA, vet- emergency did not meet the criteria I Congress assembled, SECTION 1. SHORT TITLE. erans may only be reimbursed by the mentioned previously, the VA did not This Act may be cited as the ‘‘Veterans’ VA for emergency care at a non-VA fa- reimburse Edward for the care he re- Access to Emergency Care Act of 1998’’. cility that was not pre-authorized if all ceived at Rapid City Regional. His SEC. 2. DEPARTMENT OF VETERANS AFFAIRS EN- of the following criteria are met: medical bills totaled more than $50,000. ROLLMENT SYSTEM DECLARED TO First, care must have been rendered On May 17, 1997, John Lind suffered a BE A HEALTH CARE PLAN. for a medical emergency of such nature heart attack while he was at work. Section 1705 of title 38, United States Code, that any delay would have been life- John is a Vietnam veteran exposed to is amended by adding at the end the following new subsection: threatening; second, the VA or other Agent Orange who served his country ‘‘(d) The enrollment system under sub- federal facilities must not have been for 14 years until he was discharged in section (a) is a health care plan, and the vet- feasibly available; and, third, the treat- 1981. John lives in Rapid City, South erans enrolled in that system are enrollees ment must have been rendered for a Dakota, and he points out that he and participants in a health care plan.’’. service-connected disability, a condi- would have asked to be taken to the SEC. 3. EMERGENCY HEALTH CARE IN NON-DE- PARTMENT OF VETERANS AFFAIRS tion associated with a service-con- VA Medical Center in Fort Meade for FACILITIES FOR ENROLLED VET- nected disability, or for any disability care, but he was semi-unconscious, and ERANS. of a veteran who has a 100-percent serv- emergency medical personnel trans- (a) CONTRACT CARE.—Section 1703(a)(3) of ice-connected disability. ported him to Rapid City Regional. title 38, United States Code, is amended by Many veterans who receive emer- After 4 days in the non-VA facility, inserting ‘‘who is enrolled under section 1705 gency health care at non-VA facilities John incurred nearly $20,000 in medical of this title or who is’’ after ‘‘health of a vet- are able to meet the first two criteria. eran’’. bills. Although he filed a claim with (b) DEFINITION OF MEDICAL SERVICES.—Sec- Unless they are 100-percent disabled, the VA for reimbursement, he was tion 1701(6) of such title is amended— however, they generally fail to meet turned down because the emergency (1) by striking out ‘‘and’’ at the end of sub- the third criterion because they have was not related to his service-con- paragraph (A); suffered heart attacks or other medical nected disability. (2) by striking out the period at the end of emergencies that were unrelated to Just over one month later, Delmer subparagraph (B) and inserting in lieu there- their service-connected disabilities. Paulson, a veteran from Quinn, South of ‘‘; and’’; and Considering the enormous costs associ- Dakota, suffered a heart attack on (3) by inserting after subparagraph (B) the following new subparagraph: ated with emergency health care, cur- June 26, 1997. Since he had no other ‘‘(C) emergency care, or reimbursement for rent law has been financially and emo- health care insurance, he asked to be such care, as described in sections 1703(a)(3) tionally devastating to countless vet- taken to the VA Medical Center in and 1728(a)(2)(E) of this title.’’. erans with limited income and no other Fort Meade. Again, despite his request, (c) REIMBURSEMENT OF EXPENSES FOR health insurance. The bottom line is the emergency medical personnel EMERGENCY CARE.—Section 1728(a)(2) of such that veterans are forced to pay for transported him to Rapid City Re- title is amended— emergency care out of their own pock- gional. Even though Delmer was there (1) by striking out ‘‘or’’ before ‘‘(D)’’; and (2) by inserting before the semicolon at the ets until they can be stabilized and for just over a day before being trans- end the following: ‘‘, or (E) for any medical transferred to VA facilities. ferred to Fort Meade, he was charged emergency which poses a serious threat to During medical emergencies, vet- with almost a $20,000 medical bill. the life or health of a veteran enrolled under erans often do not have a say about Again, the VA refused to reimburse section 1705 of this title’’. whether they should be taken to a VA Delmer for the unauthorized medical (d) PAYMENT PRIORITY.—Section 1705 of or non-VA medical center. Even when care because the emergency did not such title, as amended by section 2, is fur- they specifically ask to be taken to a meet VA criteria. ther amended by adding at the end the following new subsection: VA facility, emergency medical per- The Veterans’ Access to Emergency ‘‘(e) The Secretary shall require in a con- sonnel often transport them to a near- Health Care Act of 1998, which I am in- tract under section 1703(a)(3) of this title, by hospital instead because it is the troducing today, would address this se- and as a condition of payment under section closest facility. In many emergencies, rious problem. It would authorize the 1728(a)(2) of this title, that payment by the that is the only sound medical decision VA to reimburse veterans enrolled in Secretary for treatment under such con- to make. It is simply unfair to penalize the VA health care system for the cost tract, or under such section, of a veteran en- veterans for receiving emergency med- of emergency care or services received rolled under this section shall be made only after any payment that may be made with ical care at non-VA facilities. Veterans in non-VA facilities when there is ‘‘a respect to such treatment under part A or were asked to make enormous sac- serious threat to the life or health of a part B of the Medicare program and after rifices for this county, and we should veteran.’’ Rep. LANE EVANS has intro- any payment that may be made with respect not turn our backs on them during duced identical legislation in House of to such treatment by a third-party insurance their time of need. Representatives. provider.’’. There should be no misunder- Although I am extremely dis- (e) EFFECTIVE DATE.—The amendments standing. This is a widespread problem appointed that the United States Sen- made by this section shall apply with respect ate did not debate meaningful managed to care or services provided on or after the that affects countless veterans in date of the enactment of this Act. South Dakota and throughout the care reform legislation this year, I am country. I would like to cite just three hopeful the American people will con- By Mr. ROBB: examples of veterans being denied re- tinue to urge their elected representa- S. 2620. A bill to amend the Federal imbursement for emergency care at tives to pass a comprehensive, enforce- Water Pollution Control Act to estab- non-VA facilities in western South Da- able Patients’ Bill of Rights early next lish a National Clean Water Trust kota. year. I am equally hopeful that any Fund and to authorize the Adminis- The first involves Edward Sanders, meaningful HMO reform legislation trator of the Environmental Protection who is a World War II veteran from will address this serious deficiency in Agency to use amounts in the Fund to Custer, South Dakota. On March 6, veterans’ access to emergency health carry out projects to promote the re- 1994, Edward was taken to the hospital care. I look forward to continuing to covery of waters of the United States

VerDate Mar 15 2010 00:42 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00045 Fmt 4624 Sfmt 0634 E:\1998SENATE\S10OC8.REC S10OC8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S12316 CONGRESSIONAL RECORD — SENATE October 10, 1998 from damage resulting from violations mental projects as part of settlements available, as provided in appropriations Acts, of that act, and for other purposes; to related to violations of the Clean to the Administrator to carry out projects to the Committee on Environment and Water Act and/or other legislation. The restore and recover waters of the United Public Works. bill also provides court discretion over States from damage resulting from violations of this Act that are subject to enforce- NATIONAL CLEAN WATER TRUST FUND ACT OF civil penalties from Clean Water Act ment actions under this section and similar 1998 violations to be used to carry out miti- damage resulting from the discharge of pol- ∑ Mr. ROBB. Mr. President, today I in- gation and restoration projects. With lutants into the waters of the United States. troduce a bill that will help clean up this legislation, we can avoid another ‘‘(5) SELECTION OF PROJECTS.— and restore our nation’s waters. This predicament like the one faced in Vir- ‘‘(A) PRIORITY.—In selecting projects to bill, the National Clean Water Trust ginia. carry out under this subsection, the Admin- Fund Act of 1998, creates a trust fund Mr. President, it only makes sense istrator shall give priority to a project to from fines, penalties and other monies that fines occurring from violations of promote the recovery of waters of the United collected through enforcement of the the Clean Water Act be used to clean States from damage described in paragraph Clean Water Act. The money deposited (4), if an enforcement action conducted pur- up and restore the waters that were suant to this section or section 505(a)(1) with into the National Clean Water Trust damaged. This bill provides a real op- respect to the violation, or another violation Fund would be used to address the pol- portunity to improve the quality of our of this Act in the same administrative region lution problems that initiated those nation’s waters. of the Environmental Protection Agency as enforcement actions. I recognize that no action can be the violation, resulted in amounts being de- Last year, a highly publicized case in taken on this legislation this session. I posited in the general fund of the Treasury. Virginia illustrated the need for this introduce it today in order to give my ‘‘(B) CONSULTATION WITH STATES.—In se- legislation. On August 8, 1997, U.S. Dis- colleagues, the Administration and lecting projects to carry out under this section, the Administrator shall consult with trict Court Judge Rebecca Smith others an opportunity to examine the issued a $12.6 million judgement, the States in which the Administrator is consid- ideas contained in the legislation. I ering carrying out a project. largest fine ever levied for violations of will introduce this legislation early in ‘‘(C) ALLOCATION OF AMOUNTS.—In deter- the Clean Water Act, against the next Congress and hope we can in- mining an amount to allocate to carry out a Smithfield Foods, Isle of Wright Coun- clude it in the reauthorization of the project to restore and recover waters of the ty, Virginia, for polluting the James Clean Water Act when it is taken up United States from damage described in River. The Judge wrote in her opinion next year. paragraph (4), the Administrator shall, in that the civil penalty imposed on Mr. President, I ask unanimous con- the case of a priority project described in Smithfield should be directed toward sent that the full text of the bill be subparagraph (A), take into account the the restoration of the Pagan and James total amount deposited in the general fund printed in the RECORD. of the Treasury as a result of enforcement Rivers, tributaries of the Chesapeake There being no objection, the bill was actions conducted with respect to the viola- Bay. Unfortunately, due to current fed- ordered to be printed in the RECORD, as tion pursuant to this section or section eral budget laws, the court had no dis- follows: 505(a)(1). cretion over the damages, and the fine S. 2620 ‘‘(6) IMPLEMENTATION.—The Administrator was deposited into the Treasury’s gen- Be it enacted by the Senate and House of Rep- may carry out a project under this sub- eral fund, defeating the very spirit of resentatives of the United States of America in section directly or by making grants to, or the Clean Water Act. Congress assembled, entering into contracts with, another Fed- eral agency, a State agency, a political sub- Today, there is no guarantee that SECTION 1. SHORT TITLE. fines or other money levied against This Act may be cited as the ‘‘National division of a State, or any other public or Clean Water Trust Fund Act of 1998’’. private entity. parties who violate provisions in the ‘‘(7) REPORT TO CONGRESS.—Not later than 1 Clean Water Act will be used to correct SEC. 2. NATIONAL CLEAN WATER TRUST FUND. year after the date of the enactment of this Section 309 of the Federal Water Pollution water problems. Instead, some, if not subsection, and every 2 years thereafter, the Control Act (33 U.S.C. 1319) is amended by all, of the money is directed into the Administrator shall submit to Congress a re- adding at the end the following: port on implementation of this subsection.’’. general fund of the U.S. Treasury with ‘‘(h) NATIONAL CLEAN WATER TRUST no provision that it be used to improve FUND.— SEC. 3. USE OF CIVIL PENALTIES FOR MITIGA- TION PROJECTS. the quality of our water. While the En- ‘‘(1) ESTABLISHMENT.—There is established vironmental Protection Agency’s en- in the Treasury a National Clean Water (a) IN GENERAL.—Section 309(d) of the Fed- forcement activities are extracting Trust Fund (referred to in this subsection as eral Water Pollution Control Act (33 U.S.C. the ‘Fund’) consisting of amounts trans- 1319(d)) is amended by inserting after the large sums of money from industry and second sentence the following: ‘‘The court others through enforcement of the ferred to the Fund under paragraph (2) and amounts credited to the Fund under para- may order that a civil penalty be used for Clean Water Act, we ignore the funda- graph (3). carrying out mitigation, restoration, or mental issue of how to pay for clean up ‘‘(2) TRANSFER OF AMOUNTS.—For fiscal other projects that are consistent with the and restoration of pollution problems year 1998, and each fiscal year thereafter, the purposes of this Act and that enhance public for which the penalties were levied. To Secretary of the Treasury shall transfer to health or the environment.’’. ensure the successful implementation the Fund an amount determined by the Sec- (b) CONFORMING AMENDMENT.—Section of the Clean Water Act, we should put retary to be equal to the total amount depos- 505(a) of the Federal Water Pollution Control ited in the general fund of the Treasury in Act (33 U.S.C. 1365(a)) is amended in the last these enforcement funds to work and sentence by inserting before the period at actually clean up our nation’s waters. the preceding fiscal year from fines, penalties, and other funds obtained through en- the end of the following: ‘‘, including order- This legislation will establish a Na- forcement actions conducted pursuant to ing the use of a civil penalty for carrying out tional Clean Water Trust Fund within this section and section 505(a)(1), including mitigation, restoration, or other projects in the U.S. Treasury to earmark fines, any amounts obtained under consent decrees accordance with section 309(d)’’.∑ penalties, and other funds, including and excluding any amounts ordered to be consent decrees, obtained through en- used to carry out mitigation projects under By Mr. DOMENICI (for himself forcement of the Clean Water Act that this section or section 505(a). and Mr. BINGAMAN): would otherwise be placed into the ‘‘(3) INVESTMENT OF AMOUNTS.— S. 2621. A bill to authorize the acqui- Treasury’s general fund. Within the ‘‘(A) IN GENERAL.—The Secretary of the sition of the Valles Caldera currently Treasury shall invest in interest-bearing ob- provisions of the bill, the EPA Admin- managed by the Baca Land and Cattle ligations of the United States such portion Company, to provide for an effective istrator would be authorized, with di- of the Fund as is not, in the Secretary’s rect consultation from the states, to judgment, required to meet current with- land and wildlife management program prioritize and carry out projects to re- drawals. for this resource within the Depart- store and recover waters of the United ‘‘(B) ADMINISTRATION.—The obligations ment of Agriculture through the pri- States using the funds collected from shall be acquired and sold and interest on, vate sector, and for purposes; to the violations of the Clean Water Act. This and the proceeds from the sale or redemption Committee on Energy and Natural Re- of, the obligations shall be credited to the sources. legislation, however, would not pre- Fund in accordance with section 9602 of the empt citizen suits or in any way pre- Internal Revenue Code of 1986. THE VALLES CALDERA PRESERVATION ACT clude EPA’s authority to undertake ‘‘(4) USE OF AMOUNTS FOR REMEDIAL Mr. DOMENICI. Mr. President, the and complete supplemental environ- PROJECTS.—Amounts in the Fund shall be Valles Caldera in Northern New Mexico

VerDate Mar 15 2010 00:42 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00046 Fmt 4624 Sfmt 0634 E:\1998SENATE\S10OC8.REC S10OC8 mmaher on DSKCGSP4G1 with SOCIALSECURITY October 10, 1998 CONGRESSIONAL RECORD — SENATE S12317 is a place you visit for a day, and long was an example of sterling stewardship gress in 1860. Since that time, the prop- to return to for a life time. It is nature of a piece of property, this is it. erty has remained virtually intact as a at its most extraordinary—an almost The legislation introduced today cer- single, large, tract of land. perfectly round bowl formed by a col- tainly cannot pass this year: unfortu- Historical evidence in the form of old lapsed volcano. It is a place with roll- nately, time has run out for the 105th logging camps and other artifacts, and ing meadows, crystal-clear streams, Congress, but many concerns and ideas a review of the history of territorial roaming elk, Ponderosa pines and about federal purchase of the property New Mexico clearly show the impor- quaking Aspen trees, and Golden ea- will be discussed at hearings upon re- tance of this land over many genera- gles. This legislation guarantees that introduction in the 106th Congress. tions for the rearing of domesticated this very special place will be there for While there is consenus that this prop- livestock, and as a timber supply for future generations to visit and remem- erty should be acquired, we do not yet local inhabitants. Several film sets ber. know the cost of the property. The have been left standing on the prop- I am very proud to be introducing Baca Ranch is estimated to be worth erty, representing a significant part of legislation that will authorize the Sec- approximately $100 to $125 million, but the history of the American film indus- retary of the Interior to acquire a truly the appraisal has not yet been given to try and its depiction of the American unique 95,000 acre ‘‘working ranch’’ in the Forest Service or made public. West. New Mexico, known alternatively as Therefore, the exact cost of acquisition The careful husbandry of the Ranch the Baca Ranch, the Valle Grande, and has yet to be determined. by the Dunigan family, the current the Valles Caldera. Independently, but This is the largest purchase of public owners, including selective harvesting as importantly, this legislation also land by the Forest Service in at least of timber, limited grazing and hunting, addresses longstanding problems en- 25 years, therefore, it is imperative and the use of proscribed fire, have pre- countered by Federal land managers in that careful consideration is given to served a mix of healthy range and tim- disposing of surplus federal property not only the purchase, but to the man- ber land with significant species diver- and the acquisition of private agement of the property as well. sity providing a model for sustainable inholdings within federal management In past years, federal land manage- land development and use. The Ranch’s areas. ment agencies have been criticized for natural beauty and abundant re- The former provides a unique solu- their stewardship of public lands. I find sources, and its proximity to large mu- tion to the management of a unique it ironic that many of the groups who nicipal populations could provide nu- property, while the latter builds on ex- wish to bring this ranch into govern- merous recreational opportunities for isting laws and provides resources dedi- ment ownership are the same groups hiking, fishing, camping, cross-country cated to the consolidation of federal who, in recent years, have initiated re- skiing, and hunting. agency land holdings. lentless litigation against the Forest Mr. President, the Baca Location is a In north-central New Mexico there is Service and BLM alleging poor man- unique working ranch. It is not a wil- a truly unique working ranch on an agement of federal lands. However, di- derness area, as in the words of the historic Mexican land grant known as verse interests have come together to Wilderness Act, ‘‘untrammeled by man, Baca Location No. 1. The Ranch is cur- reach agreement on the trust manage- where man is a visitor who does not re- rently owned and managed by the Baca ment of the Ranch, and Congressman main.’’ Man has been there for many Land and Cattle Company, and it com- REDMOND and I have worked hard in generations, and will remain for many prises most of a collapsed, extinct vol- both Houses of Congress to obtain to come. Similarly, it is not a resource cano known as the Valles Caldera. This funding for purchase. Any funding at that could be run well as a national ranch also contains innumerable sig- this point should be viewed as earnest park. This ranch can best be protected nificant cultural, historic, rec- money, and will be subject to this au- for future generations by continuing reational, ecological, and productive thorization and agreement on the fair its operation as a working asset resources. market value for the property. through a unique management struc- The bill I introduce today is the re- The parties have really worked hard ture. This legislation provides unique sult of months of negotiation with the in framing this legislation, and there management under a trust that may Administration, Senator BINGAMAN, are still a few issues we would like to allow for its eventual operation to be- and Congressman REDMOND. We have work out. Not the least of which income financially self-sustaining. incorporated ideas from groups inter- cludes the interest expressed by the Mr. President, recent indication by ested in the acquisition of the truly Santa Clara Pueblo in purchasing land the current owners of the Baca Loca- unique Baca Ranch. Many Americans, outside the Caldera, but contains the tion that they wish to sell the ranch especially New Mexicans have ex- headwaters of the Santa Clara Creek. has created an opportunity for us to pressed a desire for the federal govern- Negotiations between the Pueblo, the acquire it into public ownership and ment to purchase the Ranch. After Administration, the current owners of allow for appropriate public access and months of research and consideration, I the property, and the congressional enjoyment of these lands for the first met with President Clinton on Air delegation on how to resolve this issue time since 1860. Because of the ranch’s Force One while we were both return- was not completed prior to today’s in- unique character, however, I am not in- ing to Washington from New Mexico to troduction. However, all parties are interested in having it managed under discuss the possibility of this land ac- terested in continuing discussion re- the usual federal authorities, as is typ- quisition. Because the nature of the garding a potential Santa Clara pur- ical of the Forest Service, Bureau of property requires a unique operational chase of property adjacent to their Land Management, or the National program for appropriate development pueblo. I also note that Congressman Park Service. Under the current state and preservation, I approached him REDMOND has expressed specific inter- of affairs on our public lands, Forest with an innovative trust structure for est in addressing other Native Amer- Service and BLM management is con- the management of the Baca Ranch. ican issues regarding the Ranch acqui- stantly hounded by litigation initiated This trust would manage the ranch sition. by some of the same groups that wish with appropriate public input and gov- I have visited the Baca Ranch, and I to bring this ranch into government ernmental oversight. I indicated that I can tell you that it is one beautiful ownership. I do not want to take this was not interested in having the ranch piece of property. The Valles Caldera is property, put it in that situation, and managed under current federal agency one of the world’s largest resurgent then claim we have done a great thing. practices. The President expressed en- lava domes with potential geothermal This legislation represents an oppor- thusiasm for making this concept a re- activity. The depression from a hugh tunity to experiment with a different ality, and we agreed on a Statement of volcanic eruption over a million years kind of public land management Principles to govern the acquisition of ago is more than a half-mile deep and scheme. Burdensome regulations, and the Baca Ranch at the end of July. fifteen miles across at its widest point. litigation resulting therefrom, have This unique working ranch has been The land was originally granted to the brought federal land management prac- well maintained and preserved by the heirs of Don Luis Maria Cabeza de Vaca tices rapidly towards gridlock. The current owners. In fact, if ever there under a settlement enacted by Con- Valles Caldera National Preserve will

VerDate Mar 15 2010 00:42 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00047 Fmt 4624 Sfmt 0634 E:\1998SENATE\S10OC8.REC S10OC8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S12318 CONGRESSIONAL RECORD — SENATE October 10, 1998 serve as a model to explore alternative federal land. Instead, I feel this legisla- to exchange or sell lands out of Federal means of federal management and will tion independently addresses the acqui- ownership. Through its public process provide the American people with op- sition of this unique property for pub- for land use planning, when the agency portunities to enjoy the Valles Caldera lic use and enjoyment, while solving has determined that certain lands and its many resources for generations current land management problems. would be more useful to the public to come. Currently, New Mexico has approxi- under private or local governmental This trust idea, based on similar leg- mately one-third of its land in public control, it is already authorized to dis- islation for federal management of the ownership or management. I agree that pose of these lands, either by sale or Presidio in San Francisco, sets in mo- these public lands are an important exchange. tion a truly unique management natural resource that require our most The sale or exchange of this land scheme befitting this truly unique thoughtful management. which I have often referred to as ‘‘sur- place. I am willing to take a chance on In order to conserve our existing Na- plus,’’ would be beneficial to local com- an innovative approach because I be- tional treasures for future use and en- munities, adjoining land owners, and lieve that the current quagmire of fed- joyment, we must devise, with the con- BLM land mangers, alike. First, it eral land management simply does not currence of other members of Congress would allow for the reconfiguration of do justice to this very special place. and the President, a definite plan and land ownership patterns to better fa- The unique nature of the Valles timetable to dispose of surplus land cilitate resource management. Second, Caldera, and its resources, requires a through sale or exchange into private it would contribute to administrative unique management program, dedi- ownership. efficiency within federal land manage- cated to appropriate development and Title II of this legislation addresses ment units, by allowing for better allo- preservation under the principle of the the orderly disposition of surplus fed- cation of fiscal and human resources highest and best use of the ranch in the eral property on a state by state basis. within the agency. Finally, in certain interest of the public. It also addresses the problem of what is locations, the sale of public land which Mr. President, title I of this legisla- known as ‘‘inholdings’’ within federally has been identified for disposal is the tion provides the framework necessary managed areas. There are currently best way for the public to realize a fair to fulfil that objective. It authorizes more than 45 million acres of privately value for this land. the acquisition of the Baca ranch by owned lands trapped within the bound- The problem, Mr. President, is that the appropriate Federal agency. At the aries of Federal land management an orderly process for the efficient dis- same time, it establishes a govern- units, including national parks, na- position of lands identified for disposal ment-owned corporation, called the tional forests, national monuments, does not currently exist. This legisla- Valles Caldera Trust, whose sole re- national wildlife refuges, and wilder- tion addresses that problem by direct- sponsibility is to ensure that the ranch ness areas. The location of these ing the BLM to fulfil all legal require- is managed in a manner that will pre- tracts, referred to as inholdings, makes ments for the transfer of these lands serve its current unique character, and the exercise of private property rights out of Federal ownership, and pro- provide enumerable opportunities for difficult for the land owner. In addi- viding a dedicated source of funding the American people to enjoy its splen- tion, management of the public lands is generated from the sale of these lands dor. Most importantly to me, however, made more cumbersome for the federal to continue this process. the legislation will allow for the land managers. Additionally, this legislation author- ranch’s continued operation as a work- In many cases, inholders have been izes the use of the proceeds generated ing asset for the people of north-cen- waiting generations for the federal gov- from these lands to purchase tral New Mexico, without further draw- ernment to set aside funding and inholdings from willing sellers. This ing on the thinly-stretched resources of prioritize the acquisition of their prop- will enhance the ability of the Federal the Federal land management agen- erty. With rapidly growing public de- land management agencies to work co- cies. mand for the use of public lands, it is operatively with private land owners, I am looking forward to hearings on increasingly difficult for federal man- and with State and local governments, this legislation next year, and know agers to address problems created by to consolidate the ownership of public that the legislative process shall en- the existence of inholdings in many and private land in a manner that lighten us further as to the complex areas. would allow for better overall resource nature of the Ranch. I, personally, am This legislation directs the Depart- management. greatly looking forward to seeing an ment of the Interior and the Depart- Mr. President, I want to make it value estimate of the land prior to au- ment of Agriculture to survey clear that this program will in no way thorization. While valued between $37 inholdings existing within Federal land detract from other programs with simi- and $55 million in 1980, I have heard management units, and to establish a lar purposes. The bill clearly states that the Baca ranch is currently esti- priority for their acquisition, on a will- that proceeds generated from the dis- mated to be worth approximately $100 ing seller basis, in the order of those posal of public land, and dedicated to to $125 million. I do not know how such which have existed as inholdings for the acquisition of inholdings, will sup- inflation will affect the likelihood of the longest time to those most re- plement, and not replace, funds appro- the location’s federal acquisition. I do cently being incorporated into the Fed- priated for that purpose through the know that we have waited patiently for eral unit. Land and Water Conservation Fund. In many months for a promised appraisal Closely related to the problem cre- addition, the bill states that the Bu- from the current owners, but an ap- ated by inholdings within Federal land reau of Land Management should rely praisal has not yet been complete nor management units, is the abundance of on non-Federal entities to conduct ap- have any other offers to purchase the public domain land which the Bureau praisals and other research required for land been made. Therefore, the exact of Land Management (BLM) has deter- the sale or exchange of these lands, al- cost of acquisition has yet to be determined it no longer needs to fulfil its lowing for the least disruption of exist- mined. Before we commit large sums of mission. Under the Federal Land Pol- ing land and resource management pro- federal taxpayer dollars to purchase icy and Management Act of 1976 grams. new property, it seems prudent to pro- (FLPMA), the BLM has identified an Mr. President, this bill has been a vide a solution for the orderly disposal estimated four to six million acres of long time in the making. For over a of surplus federal property and to meet public domain lands for disposal, and year, now, I have been working with our current obligations to those who the agency anticipates that additional and talking to knowledgeable people, hold lands within federal properties. public land will be similarly identified, both inside and outside of the current I would like to emphasize that while with public input and consultation administration, to develop many of the both portions of this bill are important with State and local governments as ideas embodied in this bill. In recent to federal land management, both in required by law. weeks, my staff and I have worked New Mexico and nationwide, my inten- Mr. President, let me simply clarify closely with the administration on this tion is not to tie federal acquisition of that point—the BLM already has au- legislation. I feel comfortable in stat- the Baca upon disposition of surplus thority under an existing law, FLPMA, ing that by working together, we have

VerDate Mar 15 2010 00:42 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00048 Fmt 4624 Sfmt 0634 E:\1998SENATE\S10OC8.REC S10OC8 mmaher on DSKCGSP4G1 with SOCIALSECURITY October 10, 1998 CONGRESSIONAL RECORD — SENATE S12319 reached agreement in principle on the (5) the careful husbandry of the Baca ranch mittee on Energy and Natural Resources of best way to proceed with these very by the Dunigan family, the current owners, the United States Senate and the Committee important issues involving the man- including selective timbering, limited graz- on Resources of the House of Representa- agement of public land resources, ing and hunting, and the use of prescribed tives. fire, have preserved a mix of healthy range (4) FINANCIALLY SELF-SUSTAINING.—The namely; the acquisition and unique and timber land with significant species di- term ‘‘financially self-sustaining’’ means management plan for the Baca ranch in versity, thereby serving as a model for sus- management and operating expenditures New Mexico, and just as importantly, tainable land development and use; equal to or less than proceeds derived from the disposition of surplus public lands (6) the Baca ranch’s natural beauty and fees and other receipts for resource use and in combination with a program to ad- abundant resources, and its proximity to development and interest on invested funds. dress problems associated with large municipal populations, could provide Management and operating expenditures inholdings within our Federal land numerous recreational opportunities for hik- shall include Trustee expenses, salaries and ing, fishing, camping, cross-country skiing, management units. benefits of staff, administrative and oper- and hunting; ating expenses, improvements to and main- Mr. President, I have committed to (7) the Forest Service documented the sce- tenance of lands and facilities of the Pre- the administration to continue to work nic and natural values of the Baca ranch in serve, and other similar expenses. Funds ap- with them on three or four areas of its 1993 study entitled ‘‘Report on the Study propriated to the Trust by Congress, either this bill, where concerns remain. I have of the Baca Location No. 1, Santa Fe Na- directly or through the Secretary, for the full confidence, however, that we can tional Forest, New Mexico,’’ as directed by purposes of this title shall not be considered. address these issues through the legis- Public Law 101–556; (5) PRESERVE.—The term ‘‘Preserve’’ lative process in the next Congress. For (8) the Baca ranch can be protected for cur- means the Valles Caldera National Preserve rent and future generations by continued op- example, the need for additional roads, established under section 105. eration as a working ranch under a unique (6) SECRETARY.—Except where otherwise parking, visitor facilities, and water management regime which would protect the provided, the term ‘‘Secretary’’ means the and mineral rights are also important land and resource values of the property and Secretary of Agriculture. issues that must be resolved. However, surrounding ecosystem while allowing and (7) TRUST.—The term ‘‘Trust’’ means the we are very luck to have the pleasure providing for the ranch to eventually become Valles Caldera Trust established under sec- of a bipartisan, administration ap- financially self-sustaining; tion 106(a). (9) the current owners have indicated that proved, legislative concept from which SEC. 104. ACQUISITION OF LANDS. they wish to sell the Baca ranch, creating an (a) ACQUISITION OF BACA RANCH.— to work. opportunity for federal acquisition and pub- (1) IN GENERAL.—In accordance with the The Senate Energy and Natural Re- lic access and enjoyment of these lands; Act of June 15, 1926 (16 U.S.C. 471a), the Sec- sources Committee will schedule hear- (10) certain features on the Baca ranch retary is authorized to acquire all or part of ings to address the many issues regard- have historical and religious significance to the rights, title and interests in and to ap- Native Americans which can be preserved ing Federal purchase of the Baca proximately 94,812 acres of the Baca ranch, and protected through federal acquisition of Ranch early in the 106th Congress. comprising the lands, facilities, and struc- Hopefully, by that time, an appraisal the property; (11) the unique nature of the Valles Caldera tures referred to as the Baca Location No. 1, will be available for review. Congress and the potential uses of its resources with and generally depicted on a plat entitled has tried to resolve the difficult chal- different resulting impacts warrants a man- ‘‘Independent Resurvey of the Baca Location lenges in acquiring this property be- agement regime uniquely capable of devel- No. 1,’’ made by L.A. Osterhoudt, W.V. Hall fore, and failed; cooperation among the oping an operational program for appro- and Charles W. Devendorf, U.S. Cadastral parties may bring success this time priate preservation and development of the Engineers, June 30, 1920—August 24, 1921, under special instructions for Group No. 107 around. I believe that in the end, we land and resources of the Baca ranch in the interest of the public; dated February 12, 1920, in New Mexico. will be able to stand together and tell (2) SOURCE OF FUNDS.—The acquisition pur- the American people that we truly (12) an experimental management regime should be provided by the establishment of a suant to paragraph (1) may be made by pur- have accomplished two great and inno- Trust capable of using new methods of public chase through appropriated or donated vative things with this legislation. land management that may prove to be cost- funds, by exchange, by contribution, or by Mr. President, I ask unanimous con- effective and environmentally sensitive; and donation of land. Funds appropriated to the sent that the text of the bill and State- (13) the Secretary may promote more effi- Secretary and the Secretary of the Interior ment of Principles be printed in the cient management of the Valles Caldera and from the Land and Water Conservation Fund shall be available for this purpose. RECORD. the watershed of the Santa Clara Creek through the assignment of purchase rights of (3) BASIS OF SALE.—The acquisition pursu- There being no objection, the mate- ant to paragraph (1) shall be based on ap- rial was ordered to be printed in the such watershed to the Pueblo of Santa Clara. (b) PURPOSES.—The purposes of this title praisal done in conformity with the Uniform RECORD, as follows: are— Appraisal Standards for Federal Land Acquisi- S. 2621 (1) to authorize Federal acquisition of the tions and— Be it enacted by the Senate and House of Rep- Baca ranch; (A) in the case of purchase, such purchase resentatives of the United States of America in (2) to protect and preserve for future gen- shall be on a willing seller basis for no more Congress assembled, erations the scenic and natural values of the than the fair market value of the land or in- Baca ranch, associated rivers and eco- terests therein acquired; and TITLE I—VALLES CALDERA NATIONAL systems, and archaeological and cultural re- (B) in the case of exchange, such exchange PRESERVE AND TRUST sources; shall be for lands, or interests therein, of SECTION 101. SHORT TITLE. (3) to provide opportunities for public equal value, in conformity with the existing This title may be cited as the ‘‘Valles recreation; exchange authorities of the Secretary. Caldera Preservation Act’’. (4) to establish a demonstration area for an (4) DEED.—The conveyance of the offered SEC. 102. FINDINGS AND PURPOSES. experimental management regime adapted lands to the United States under this sub- (a) FINDINGS.—Congress finds that— to this unique property which incorporates section shall be by general warranty or other (1) the Baca ranch, owned and managed by elements of public and private administra- deed acceptable to the Secretary and in con- the Baca Land and Cattle Company, com- tion in order to promote long term financial formity with applicable title standards of prises most of the Valles Caldera in central sustainability consistent with the other pur- the Attorney General. New Mexico, and constitutes a unique land poses enumerated in this subsection; and (b) ADDITION OF LAND TO BANDELIER NA- mass, with significant scientific, cultural, (5) to provide for sustained yield manage- TIONAL MONUMENT.— historic, recreational, ecological, wildlife, ment of Baca ranch for timber production (1) IN GENERAL.—Upon acquisition of the fisheries, and productive values; and domesticated livestock grazing insofar Baca ranch pursuant to subsection (a), the (2) the Valles Caldera is a large resurgent as is consistent with the other purposes stat- Secretary of the Interior shall assume ad- lava dome with potential geothermal activ- ed herein. ministrative jurisdiction over the approxi- ity; SEC. 103. DEFINITIONS. mately 845 acres of the land acquired within (3) the land comprising the Baca ranch was In this title: the Upper Alamo watershed as depicted on originally granted to the heirs of Don Luis (1) BACA RANCH.—The term ‘‘Baca ranch’’ the Forest Service map entitled ‘‘Proposed Maria Cabeza de Vaca in 1860; means the lands and facilities described in Boundary Expansion Map Bandelier National (4) historical evidence in the form of old section 104(a). Monument’’ dated October, 1998. logging camps, and other artifacts, and the (2) BOARD OF TRUSTEES.—The terms ‘‘Board (2) MANAGEMENT.—Upon assumption of ad- history of territorial New Mexico indicate of Trustees’’ and ‘‘Board’’ mean the Board of ministrative jurisdiction pursuant to para- the importance of this land over many gen- Trustees as described in section 107. graph (1), the Secretary of the Interior shall erations for domesticated livestock produc- (3) COMMITTEES OF CONGRESS.—The term manage the added land as a part of Bandelier tion and timber supply; ‘‘Committees of Congress’’ means the Com- National Monument, the boundaries of which

VerDate Mar 15 2010 00:42 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00049 Fmt 4624 Sfmt 0634 E:\1998SENATE\S10OC8.REC S10OC8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S12320 CONGRESSIONAL RECORD — SENATE October 10, 1998 are hereby adjusted to encompass such addi- Valles Caldera National Preserve as a unit of of an executive director and such other offi- tion. The Secretary of the Interior is author- the National Forest System which shall in- cers and employees as it deems necessary ized to utilize funds appropriated for the Na- clude all Federal lands and interest in land without regard to the provisions of title 5, tional Park Service to acquire on a willing acquired pursuant to subsection 104(a), ex- United States Code, governing appointments seller basis, the Elk Meadows subdivision cept those lands and interests in land admin- in the competitive service, and may pay within such boundary adjustment. istered by the Secretary of the Interior pur- them without regard to the provisions of (c) PLAT AND MAPS.— suant to section 104(b)(1), and shall be man- chapter 51, and subchapter III of chapter 53, (1) PLAT AND MAPS PREVAILS.—In case of aged in accordance with the purposes and re- title 5, United States Code, relating to clas- any conflict between the plat referred to in quirements of this title. sification and General Schedule pay rates. subsection (a)(1) and the map referred to in (b) PURPOSES.—The purposes for which the No employee of the Trust shall be paid at a subsection (b)(1) and the acreages provided Preserve is established are to protect and rate in excess of that paid the Supervisor of in such subsections, the plat or map shall preserve the scenic, geologic, watershed, the Santa Fe National Forest or the Super- prevail. fish, wildlife, historic, cultural, and rec- intendent of the Bandelier National Monu- (2) MINOR CORRECTIONS.—The Secretary and reational values of the Preserve, and to pro- ment, whichever is greater. the Secretary of the Interior may make vide for multiple use and sustained yield of (2) FEDERAL EMPLOYEES.— minor corrections in the boundaries of the renewable resources within the Preserve, (A) IN GENERAL.—Except as provided in this Upper Alamo watershed as depicted on the consistent with this title. title, employees of the Trust shall be Federal map referred to in subsection (b)(1). (c) MANAGEMENT AUTHORITY.—Except for employees as defined by title 5, United (3) BOUNDARY MODIFICATION.—Upon the con- the powers of the Secretary enumerated in States Code, and shall be subject to all veyance of any lands to any entity other this title, the Preserve shall be managed by rights and obligations applicable thereto. than the Secretary, the boundary of the Pre- the Valles Caldera Trust established by sec- (B) USE OF FOREST SERVICE EMPLOYEES serve shall be modified to exclude such tion 106. UPON ESTABLISHMENT OF THE TRUST.—For the lands. (d) ELIGIBILITY FOR PAYMENT IN LIEU OF two year period from the date of the estab- (4) FINAL MAPS.—Within 180 days of the TAXES.—Lands acquired by the United States lishment of the Trust, and upon the request date of acquisition of the Baca ranch pursu- pursuant to section 104(a) shall constitute of the Trust, the Secretary may provide, on ant to subsection (a), the Secretary and the entitlement lands for purposes of the Pay- a nonreimbursable basis, Forest Service per- Secretary of the Interior shall prepare and ment in Lieu of Taxes Act (31 U.S.C. 6901– sonnel and technical expertise as necessary submit to the Committees of Congress a final 6904). or desirable to assist in the implementation map to the Valles Caldera National Preserve (e) WITHDRAWALS.— of this title. Thereafter, Forest Service em- and a final map of Bandelier National Monu- (1) IN GENERAL.—Upon acquisition of all in- ployees may be provided to the Trust as pro- ment, respectively. terests in minerals within the boundaries of vided in paragraph (C). (5) PUBLIC AVAILABILITY.—The plat and the Baca ranch pursuant to section 104(e), (C) USE OF OTHER FEDERAL EMPLOYEES.—At maps referred to in the subsection shall be subject to valid existing rights, the lands the request of the Trust, the employees of kept and made available for public inspec- comprising the Preserve shall be withdrawn any Federal agency may be provided for im- tion in the offices of the Chief, Forest Serv- from disposition under all laws pertaining to plementation of this title. Such employees ice, and Director, National Park Service, in mineral leasing, including geothermal leas- detailed to the Trust for more than 30 days Washington, D.C., and Supervisor, Santa Fe ing. shall be provided on a reimbursable basis. National Forest, and Superintendent, Ban- (2) MATERIALS FOR ROADS AND FACILITIES.— (e) GOVERNMENT CORPORATION.— delier National Monument, in the State of Nothing in this title shall preclude the Sec- (1) IN GENERAL.—The Trust shall be a Gov- New Mexico. retary, prior to assumption of management ernment Corporation subject to chapter 91 of (d) WATERSHED MANAGEMENT STUDY.—The authority by the Trust, and the Trust there- title 31, United States Code (commonly re- Secretary, acting through the Forest Serv- after, from allowing the utilization of com- ferred to as the Government Corporation ice, in cooperation with the Secretary of the mon varieties of mineral materials such as Control Act). Financial statements of the Interior, acting through the National Park sand, stone and gravel as necessary for con- Trust shall be audited annually in accord- Service, shall— struction and maintenance of roads and fa- ance with section 9105 of title 31 of the (1) develop a study of management alter- cilities within the Preserve. United States Code. natives which may— (f) FISH AND GAME.—Nothing in this title (2) REPORTS.—The Trust shall submit, but (A) provide more coordinated land manage- shall be construed as affecting the respon- not later than January 15 of each year, to ment within the area known as the Lower sibilities of the State of New Mexico with re- the Secretary and the Committees of Con- Alamo watershed; spect to fish and wildlife, including the regu- gress a comprehensive and detailed report of (B) allow for improved management of elk lation of hunting, fishing and trapping with- its operations, activities, and accomplish- and other wildlife populations ranging be- in the Preserve, except that the Trust may, ments for the prior year. The report shall tween the Santa Fe National Forest and the in consultation with the Secretary and the also include a section that describes the Bandelier National Monument; and State of New Mexico, designate zones where, Trust’s goals for the current year. (C) include a proposed boundary adjust- and establish periods when no hunting, fish- (f) TAXES.—The Trust and all properties ment between the Santa Fe National Forest ing or trapping shall be permitted for rea- administered by the Trust shall be exempt and the Bandelier National Monument to fa- sons of public safety, administration, the from all taxes and special assessments of cilitate the objectives under subparagraphs protection of nongame species and their every kind by the State of New Mexico, and (A) and (B); and habitats, or public use and enjoyment. its political subdivisions including the Coun- (2) submit the study to the Committees of SEC. 106. THE VALLES CALDERA TRUST. ties of Sandoval and Rio Arriba. Congress within 120 days of the boundary ad- (a) ESTABLISHMENT.—There is hereby es- (g) DONATIONS.—The Trust may solicit and justment pursuant to subsection (b)(2). tablished a wholly owned government cor- accept donations of funds, property, supplies, (e) OUTSTANDING MINERAL INTERESTS.—The poration known as the Valles Caldera Trust or services from individuals, foundations, acquisition of the Baca ranch by the Sec- which is empowered to conduct business in corporations and other private or public en- retary shall be subject to all outstanding the State of New Mexico and elsewhere in tities for the purposes of carrying out its du- valid existing mineral interests. The Sec- the United States in furtherance of its cor- ties. The Secretary, prior to assumption of retary is authorized and directed to nego- porate purposes. management authority by the Trust, and the tiate with the owners of any fractional inter- (b) CORPORATE PURPOSES.—The purposes of Trust thereafter, may accept donations from est in the subsurface estate for the acquisi- the Trust are— such entities notwithstanding that such do- tion of such fractional interest on a willing (1) to provide management and administra- nors may conduct business with the Depart- seller basis for their appraised fair market tive services for the Preserve; ment of Agriculture or any other Depart- value. Any such interests acquired within (2) to establish and implement management or agency of the United States. the boundaries of the Upper Alamo water- ment policies which will best achieve the (h) PROCEEDS.— shed, as referred to in subsection (b)(1), shall purposes and requirements of this title; (1) IN GENERAL.—Notwithstanding section be administered by the Secretary of the Inte- (3) to receive and collect funds from pri- 1341 of title 31 of the United States Code, all rior as part of Bandelier National Monu- vate and public sources and to make disposi- monies received by the Trust shall be re- ment. tions in support of the management and ad- tained by the Trust, and such monies shall (f) BOUNDARIES OF THE BACA RANCH.—For ministration of the Preserve; and be available, without further appropriation, purposes of section 7 of the Land and Water (4) to cooperate with Federal, State, and for the administration, preservation, res- Conservation Fund Act of 1965 (16 U.S.C. local governmental units, and with Indian toration, operation and maintenance, im- 4601–9), the boundaries of the Baca ranch tribes and Pueblos, to further the purposes provement, repair and related expenses in- shall be treated as if they were National For- for which the Preserve was established. curred with respect to properties under its est boundaries existing as of January 1, 1965. (c) NECESSARY POWERS.—The Trust shall management jurisdiction. SEC. 105. THE VALLES CALDERA NATIONAL PRE- have all necessary and proper powers for the (2) FUND.—There is hereby established in SERVE. exercise of the authorities vested in it. the Treasury of the United States a special (a) ESTABLISHMENT.—Upon the date of ac- (d) STAFF.— interest bearing fund entitled ‘‘Valles quisition of the Baca ranch pursuant to sec- (1) IN GENERAL.—The Trust is authorized to Caldera Fund’’ which shall be available, tion 104(a) there is hereby established the appoint and fix the compensation and duties without further appropriation, to the Trust

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for any purpose consistent with the purposes (2) VACANCIES.—Any vacancy among the leases, contracts and other arrangements of this title. At the option of the Trust, the appointed trustees shall be filled in the same with any person, firm, association, organiza- Secretary of the Treasury shall invest excess manner in which the original appointment tion, corporation on governmental entity, monies of the Trust in such account, which was made, and any trustee appointed to fill including without limitation, entities of shall bear interest at rates determined by a vacancy shall serve for the remainder of Federal, State and local governments, and the Secretary of the Treasury taking into that term for which his or her predecessor consultation with Indian tribes and pueblos, consideration the current average market was appointed. as are necessary and appropriate to carry yield on outstanding marketable obligations (3) LIMITATIONS.—No appointed trustee out its authorized activities or fulfill the of the United States of comparable maturity. may serve more than 8 years in consecutive purposes of this title. Any such agreements (i) SUITS.—The Trust may sue and be sued terms. may be entered into without regard to sec- in its own name to the same extent as the (d) QUORUM.—A majority of trustees shall tion 321 of the Act of June 30, 1932 (40 U.S.C. Federal Government. For purposes of such constitute a quorum of the Board for the 303b). suits, the residence of the Trust shall be the conduct of business. (2) PROCEDURES.—The trust shall establish State of New Mexico. The Trust shall be rep- (e) ORGANIZATION AND COMPENSATION.— procedures for entering into lease agree- resented by the Attorney General in any liti- (1) IN GENERAL.—The Board shall organize ments and other agreements for the use and gation arising out of the activities of the itself in such a manner as it deems most ap- occupancy of facilities of the Preserve. The Trust, except that the Trust may retain pri- propriate to effectively carry out the activi- procedures shall ensure reasonable competi- vate attorneys to provide advice and counsel. ties of the Trust. tion, and set guidelines for determining rea- (j) BYLAWS.—The Trust shall adopt nec- (2) COMPENSATION OF TRUSTEES.—Trustees sonable fees, terms, and conditions for such essary bylaws to govern its activities. shall serve without pay, but may be reim- agreements. (k) INSURANCE AND BOND.—The Trust shall bursed from the funds of the Trust for the ac- (3) LIMITATIONS.—The Trust may not dis- require that all holders of leases from, or tual and necessary travel and subsistence ex- pose of to any real property in, or convey parties in contract with, the Trust that are penses incurred by them in the performance any water rights appurtenant to the Pre- authorized to occupy, use, or develop prop- of their duties. serve. The Trust may not convey any ease- erties under the management jurisdiction of (3) CHAIR.—Trustees shall select a chair ment, or enter into any contract, lease or the Trust procure proper insurance against from the membership of the Board. other agreement related to use and occu- any loss in connection with such properties, (f) LIABILITY OF TRUSTEES.—Appointed pancy of property within the Preserve for a or activities authorized in such lease or con- trustees shall not be considered Federal em- period greater than 10 years. Any such ease- tract, as is reasonable and customary. ployees by virtue of their membership on the ment, contract, or lease or other agreement SEC. 107. BOARD OF TRUSTEES. Board, except for purposes of the Federal shall provide that, upon termination of the Trust, such easement, contract, lease or (a) IN GENERAL.—The Trust shall be gov- Tort Claims Act, the Ethics in Government erned by a 7 member Board of trustees con- Act, and the provisions of Chapter 11 of title agreement is terminate. (4) APPLICATION OF PROCUREMENT LAWS.— sisting of the following: 18, United States Code. (A) IN GENERAL.—Notwithstanding any (1) VOTING TRUSTEES.—The voting Trustees (g) MEETINGS.— other provision of law, Federal laws and reg- shall be— (1) LOCATION AND TIMING OF MEETINGS.—The ulations governing procurement by Federal (A) the Supervisor of the Santa Fe Na- Board shall meet in sessions open to the pub- agencies shall not apply to the Trust, with tional Forest, United States Forest Service; lic at least three times per year in New Mex- the exception of laws and regulations relate (B) the Superintendent of the Bandelier ico. Upon a majority vote made in open ses- to Federal government contracts governing National Monument, National Park Service; sion, and a public statement of the reasons health and safety requirements, wage rates, and therefore, the Board may close any other and civil rights. (C) 7 individuals, appointed by the Presi- meetings to the public: Provided, That any (B) PROCEDURES.—The Trust, in consulta- dent, in consultation with the Congressional final decision of the Board to adopt or amend tion with the Administrator of Federal Pro- delegation from the State of New Mexico. the comprehensive management program curement Policy, Office of Management and The 7 individuals shall have specific exper- pursuant to section 108(d) or to approve any Budget, shall establish and adopt procedures tise or represent an organization or govern- activity related to the management of the applicable to the Trust’s procurement of ment entity as follows— land or resources of the Preserve shall be goods and services, including the award of (i) one trustee shall have expertise in all made in open public session. contracts on the basis of contractor quali- aspects of domesticated livestock manage- (2) PUBLIC INFORMATION—In addition to fications, price, commercially reasonable ment, production and marketing, including other requirements of applicable law, the buying practices, and reasonable competi- range management and livestock business Board shall establish procedures for pro- tion. management; viding appropriate public information and (d) MANAGEMENT PROGRAM.—Within two (ii) one trustee shall have expertise in the opportunities for public comment regarding the management of the Preserve. years after assumption of management re- management of game and non-game wildlife sponsibilities for the Preserve, the Trust SEC. 108. RESOURCE MANAGEMENT. and fish populations, including hunting, fish- shall develop a comprehensive program for ing and other recreational activities; (a) ASSUMPTION OF MANAGEMENT.—The the management of lands, resources, and fa- (iii) one trustee shall have expertise in the Trust shall assume all authority provided by cilities within the Preserve. Such program sustainable management of forest lands for the title to manage the Preserve upon a de- shall provide for— commodity and non-commodity purposes; termination by the Secretary, which to the (1) operation of the Preserve as a working (iv) one trustee shall be active in a non- maximum extent practicable shall be made ranch, consistent with paragraphs (2) profit conservation organization concerned within 60 days after the appointment of the through (4); with the activities of the Forest Service; Board, that— (2) the protection and preservation of the (v) one trustee shall have expertise in fi- (1) the Board is duly appointed, and able to scenic, geologic, watershed, fish, wildlife, nancial management, budgeting and pro- conduct business; and historic, cultural and recreational values of graming; (2) provision has been made for essential the Preserve; (vi) one trustee shall have expertise in the management services. (3) multiple use and sustained yield, as de- cultural and natural history of the region; (b) MANAGEMENT RESPONSIBILITIES.—Upon fined under the Multiple-Use Sustained Yield and assumption of management of the Preserve Act of 1960 (16 U.S.C. 531), of renewable re- (vii) one trustee shall be active in State or pursuant to subsection (a), the Trust shall sources within the Preserve; local government in New Mexico, with exper- manage the land and resources of the Pre- (4) public use of and access to the Preserve tise in the customs of the local area. serve and the use thereof including, but not for recreation; (2) QUALIFICATIONS.—Of the trustees ap- limited to such activities as— (5) preparation of an annual budget with pointed by the President— (1) administration of the operations of the the goal of achieving a financially self-sus- (A) none shall be employees of the Federal Preserve; taining operation within 15 full fiscal years Government; and (2) preservation and development of the after the date of acquisition of the Baca (B) at least five shall be residents of the land and resources of the Preserve; ranch pursuant to section 104(a); and State of New Mexico. (3) interpretation of the Preserve and its (6) optimizing the generation of income (b) INITIAL APPOINTMENTS.—The President history for the public; based on existing market conditions, but shall make the initial appointments to the (4) management of public use and occu- without unreasonably diminishing the long- Board of Trustees within 90 days after acqui- pancy of the Preserve; and term scenic and natural values of the area, sition of the Baca ranch pursuant to section (5) maintenance, rehabilitation, repair and or diminishing the multiple use, sustained 104(a). improvement of property within the Pre- yield capability of the land. (c) TERMS.— serve. (e) PUBLIC USE AND RECREATION.— (1) IN GENERAL.—Appointed trustees shall (c) AUTHORITIES.— (1) IN GENERAL.—The Trust shall give thor- each serve a term of 4 years, except that of (1) IN GENERAL.—The Trust shall develop ough consideration to the provision of pro- the trustees first appointed, 4 shall serve for programs and activities at the Preserve, and vide appropriate opportunities for public use a term of 4 years, and 3 shall serve for a term shall have the authority to negotiate di- and recreation that are consistent with the of 2 years. rectly and enter into such agreements, other purposes under section 105(b). The

VerDate Mar 15 2010 00:42 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00051 Fmt 4624 Sfmt 0634 E:\1998SENATE\S10OC8.REC S10OC8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S12322 CONGRESSIONAL RECORD — SENATE October 10, 1998 Trust is expressly authorized to construct Act of 1976, of over 5–10 years duration, in co- stating the reasons for such recommenda- and upgrade roads and bridges, and provide operation with the Trust, including, but not tion. other facilities for activities including, but limited to, road and utility rights-of-way, (c) EFFECT OF TERMINATION.—In the event not limited to camping and picnicking, hik- and communication sites; of termination of the Trust, the Secretary ing, cross country skiing, and snowmobiling. (2) issue orders pursuant to and enforce shall assume all management and adminis- Roads, trails, bridges, and recreational fa- prohibitions generally applicable on other trative functions over the Preserve, and it cilities constructed within the Preserve shall units of the National Forest System, in co- shall thereafter be managed as a part of the meet public safety standards applicable to operation with the Trust; Santa Fe National Forest, subject to all laws units of the National Forest System and the (3) exercise the authorities of the Sec- applicable to the National Forest System. State of New Mexico. retary under the Wild and Scenic Rivers Act (d) ASSETS.—In the event of termination of (2) FEES.—Notwithstanding any other pro- (16 U.S.C. 1278, et seq.) and the Federal the Trust, all assets of the Trust shall be vision of law, the Trust is authorized to as- Power Act (16 U..S.C. 797, et seq.), in co- used to satisfy any outstanding liabilities, sess reasonable fees for admission to, and the operation with the Trust; and any funds remaining shall be transferred use and occupancy of, the Preserve: Provided, (4) acquire the mineral rights referred to in to the Secretary for use, without further ap- That admission fees and any fees assessed for section 104(e); propriation, for the management of the Pre- recreational activities shall be implemented (5) provide law enforcement and fire sup- serve. only after public notice and a period of not pression services pursuant to section 108(h); (e) VALLES CALDERA FUND.—In the event of less than 60 days for public comment. (6) at the request of the Trust, exchange or termination, the Secretary shall assume the (3) PUBLIC ACCESS.—Upon the acquisition of otherwise dispose of land or interests in land powers of the Trust over funds pursuant to the Baca ranch pursuant to section 104(a), within the Preserve; section 106(h), and the Valles Caldera Fund and after an interim planning period of no (7) in consultation with the Trust, refer shall not terminate. Any balances remaining more than two years, the public shall have civil and criminal cases pertaining to the in the fund shall be available to the Sec- reasonable access to the Preserve for recre- Preserve to the Department of Justice for retary, without further appropriation, for ation purposes. The Secretary, prior to as- prosecution; any purpose consistent with the purposes of sumption of management of the Preserve by (8) retain title to and control over fossils this title. the Trust, and the Trust thereafter, may rea- and archaeological artifacts found with the SEC. 111. LIMITATIONS ON FUNDING. sonably limit the number and types of rec- Preserve; (a) AUTHORZATION OF APPROPRIATIONS.— reational admissions to the Preserve, or any (9) at the request of the Trust, construct There is hereby authorized to be appro- part thereof, based on the capability of the and operate a visitors’ center in or near the priated to the Secretary and the Trust such land, resources, and facilities. The use of res- Preserve, subject to the availability of ap- funds as are necessary for them to carry out ervation or lottery systems is expressly au- propriated funds; the purposes of this title for each of the 15 thorized to implement this paragraph. (10) conduct the assessment of the Trust’s full fiscal years after the date of acquisition (f) APPLICABLE LAWS.— performance, and, if the Secretary deter- of the Baca ranch pursuant to section 104(a). (1) IN GENERAL.—The Trust shall admin- mines it necessary, recommend to Congress (b) SCHEDULE OF APPROPRIATIONS.—Within ister the Preserve in conformity with this the termination of the Trust, pursuant to two years after the first meeting of the title and all laws pertaining to the National section 110(b)(2); and Board, the Trust shall submit to Congress a Forest System, except the Forest and Range- (11) conduct such other activities for which plan which includes a schedule of annual de- land Renewable Resources Planning Act of express authorization is provided to the Sec- creasing federally appropriated funds that 1974, as amended (16 U.S.C. 1600 et seq.). retary by this title. will achieve, at a minimum, the financially (2) ENVIRONMENTAL LAWS.—The Trust shall (b) SECRETARIAL AUTHORITY.—the Sec- self-sustained operation of the Trust within be deemed a federal agency for the purposes retary retains the authority to suspend any 15 full fiscal years after the date of acquisi- of compliance with federal environmental decision of the Board with respect to the tion of the Baca ranch pursuant to section laws. management of the Preserve if he finds that 104(a). (3) CRIMINAL LAWS.—All criminal laws re- the decision is clearly inconsistent with this (c) ANNUAL BUDGET REQUEST.—The Sec- lating to Federal property shall apply to the title. Such authority shall only be exercised retary shall provide necessary assistance, in- same extent as on adjacent units of the Na- personally by the Secretary, and may not be cluding detailees as necessary, to the Trust tional Forest System. delegated. Any exercise of this authority in the formulation and submission of the an- (4) REPORTS ON APPLICABLE RULES AND REG- shall be in writing to the Board, and notifi- nual budget request for the administration, ULATIONS.—The Trust may submit to the cation of the decision shall be given to the operation, and maintenance of the Preserve. Secretary and the Committees of Congress a Committees of Congress. Any suspended de- SEC. 112. GENERAL ACCOUNTING OFFICE STUDY. compilation of applicable rules and regula- cision shall be referred back to the Board for (a) INITIAL STUDY.—Three years after the tions which in the view of the Trust are in- reconsideration. assumption of management by the Trust, the appropriate, incompatible with this title, or (c) ACCESS.—The Secretary shall at all General Accounting Office shall conduct an unduly burdensome. times have access to the Preserve for admin- interim study of the activities of the Trust (5) CONSULTATION WITH TRIBES AND PUEB- istrative purposes. and shall report the results of the study to LOS.—The Trust is authorized and directed to SEC. 110. TERMINATION OF THE TRUST. the Committees of Congress. The study shall include, but shall not be limited to, details cooperate and consult with Indian tribes and (a) IN GENERAL.—The Valles Caldera Trust pueblos on management policies and prac- shall terminate at the end of the twentieth of programs and activities operated by the tices for the Preserve which may affect full fiscal year following acquisition of the Trust and whether it met its obligations them. The Trust is authorized to make lands Baca ranch pursuant to section 104(a). under this title. (b) SECOND STUDY.—Seven years after the available within the Preserve for religious (b) RECOMMENDATIONS.— assumption of management by the Trust, the and cultural uses by Native Americans and, (1) BOARD.— in so doing, may set aside places and times (A) If after the fourteenth full fiscal years General Accounting Office shall conduct a of exclusive use consistent with the Amer- from the date of acquisition of the Baca study of the activities of the Trust and shall ican Indian Religious Freedom Act (42 U.S.C. ranch pursuant to section 104(a), the Board report the results of the study to the Com- 1996 (note)) and other applicable statutes. believes the Trust has met the goals and ob- mittees of Congress. The study shall provide (6) NO ADMINISTRATIVE APPEAL.—The ad- jectives of the comprehensive management an assessment of any failure to meet obliga- ministrative appeals regulations of the Sec- program under section 108(d), but has not be- tions that may be identified under sub- retary shall not apply to activities of the come financially self-sufficent, the Board section (a), and further evaluation on the Trust and decisions of the Board. may submit to the Committees of Congress, ability of the Trust to meet its obligations (g) LAW ENFORCEMENT AND FIRE SUPPRES- a recommendation for authorization of ap- under this title. SION.—The Secretary shall provide law en- propriations beyond that provided under this TITLE II—ACQUISITION OF INHOLDINGS forcement services under a cooperative title. AND DISPOSAL OF SURPLUS LAND agreement with the Trust to the extent gen- (B) During the eighteenth full fiscal year SEC. 201. SHORT TITLE. erally authorized in other units of the Na- from the date of acquisition of the Baca This title may be cited as the ‘‘Acquisition tional Forest System. At the request of the ranch pursuant to section 104(a), the Board of Inholdings and Disposal of Surplus Lands Trust, the Secretary may provide fire sup- shall submit to the Secretary its rec- Facilitation Act’’. pression services: Provided, That the Trust ommendation that the Trust be either ex- SEC. 202. FINDINGS. shall reimburse the Secretary for salaries tended or terminated including the reasons Congress finds that— and expenses of fire suppression personnel, for such recommendation. (1) many private individuals own land commensurate with services provided. (2) SECRETARY.—Within 120 days after re- within the boundaries of Federal land man- SEC. 109. AUTHORITIES OF THE SECRETARY. ceipt of the recommendation of the Board agement units and wish to sell this land to (a) IN GENERAL.—Notwithstanding the as- under paragraph (1)(B), the Secretary shall the Federal government; sumption by the Trust of management au- submit to the Committees of Congress the (2) these lands lie within national parks, thority, the Secretary is authorized to— Board’s recommendation on extension or ter- national forests, national monuments, Bu- (1) issue any rights-of-way, as defined in mination along with the recommendation of reau of Land Management special areas, and the Federal Land Policy and Management the Secretary with respect to the same and national wildlife refuges;

VerDate Mar 15 2010 00:42 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00052 Fmt 4624 Sfmt 0634 E:\1998SENATE\S10OC8.REC S10OC8 mmaher on DSKCGSP4G1 with SOCIALSECURITY October 10, 1998 CONGRESSIONAL RECORD — SENATE S12323 (3) in many cases, inholders on these lands under the National Trails System Act, as establish a program, utilizing funds avail- and the Federal government would mutually amended (16 U.S.C. 1241 et seq.). able under section 207, to complete apprais- benefit by acquiring on a priority basis these (2) INHOLDING.—The term ‘‘inholding’’ als and other legal requirements for the sale lands; means any right, title, or interest, held by a or exchange of land identified for disposal (4) Federal land management agencies are non-Federal entity, in or to a tract of land under approved land use plans maintained facing increased workloads from rapidly which lies within the boundary of a Feder- under section 202 of the Federal Land Policy growing public demand for the use of public ally designated area; the term ‘‘inholding’’ and Management Act of 1976 (43 U.S.C. 1712) lands, making it difficult for federal man- does not include lands or interests in lands and in effect on the date of enactment of this agers to address problems created by the ex- for which clear title has not been established title. istence of inholdings in many areas; (except where waved by the Federal govern- (b) SALE OF PUBLIC LAND.—The sale of pub- (5) through land use planning under the ment), rights-of-way (including railroad lic land so identified shall be conducted in Federal Land Policy and Management Act of rights-of-way), and existing easements; and accordance with section 203 and section 209 (3) PUBLIC LAND.—The term ‘‘public land’’ 1976 the Bureau of Land Management has of the Federal Land Policy and Management means public lands as defined in section 103 identified certain public lands for disposal; Act of 1976 (43 U.S.C. 1713, 1719). It is the in- of the Federal Land Policy and Management (6) the Bureau of Land Management has tent of Congress that the exceptions to com- Act of 1976 (43 U.S.C. 1702). authority under the Federal Land Policy and petitive bidding requirements under section Management Act of 1976 to exchange or sell SEC. 204. IDENTIFICATION OF INHOLDINGS WITH- 203(f) of the Federal Land Policy and Man- IN FEDERALLY DESIGNATED AREAS. lands identified for disposal under its land agement Act of 1976 (43 U.S.C. 1713(f) apply (a) MULTI-AGENCY EVALUATION TEAM.— use planning; (1) IN GENERAL.—Jointly, the Secretary of under this title, where the Secretary of the (7) a more expeditious process for disposi- the Interior and the Secretary of Agriculture Interior determines it necessary and proper. tion of public lands identified for disposal (the Secretaries) shall establish a multi- (c) REPORT IN PUBLIC LAND STATISTICS.— would benefit the public interest; agency evaluation team composed of agency The Secretary shall provide in the annual (8) the sale or exchange of land identified personnel to conduct a program to identify, publication of Public Land Statistics, a re- for disposal would— by state, inholdings within Federally des- port of activities related to the program es- (A) allow for the reconfiguration of land ignated areas and establish the dates upon tablished under this section. ownership patterns to better facilitate re- which the lands or interests therein became (d) TERMINATION OF PROGRAM.—The pro- source management; inholdings. Inholdings shall be identified gram established by this section shall termi- (B) contribute to administrative efficiency using the means set forth under subsection nate ten years from the date of enactment of within the federal land management unit; (d). Inholdings shall be deemed established this title. and as of the latter of— SEC. 206. DISTRIBUTION OF RECEIPTS. (C) allow for increased effectiveness of the (A) the date the Federal land was with- Notwithstanding any other Act, except allocation of fiscal and human resources drawn from the public domain, or established that specifically providing for a proportion within the agency; or designated for special management, of the proceeds to be distributed to any trust (9) in certain locations, the sale of public whichever is earlier; or funds of any States, gross proceeds generated land which has been identified for disposal is (B) the date on which the inholding was ac- by the sale or exchange of public land under the best way for the public to receive a fair quired by the current owner. this title shall be deposited in a separate ac- market value for the land; (2) PUBLIC NOTICE.—The Secretaries shall count in the Treasury of the United States (10) using proceeds generated from the dis- provide notice to the public in the Federal to be known as the ‘‘Federal Land Disposal Register (and through other such means as posal of public land to purchase inholdings Account’’, for use as provided under section the Secretaries may determine to be appro- from willing sellers would enhance the abil- 207. ity of the Federal land management agencies priate) of a program of identification of inholdings within Federally designated areas SEC. 207. FEDERAL LAND DISPOSAL ACCOUNT. to work cooperatively with private land own- (a) IN GENERAL.—Amounts in the Federal ers, and State and local governments and by which any owner who wants to sell such an inholding to the United States shall pro- Land Disposal Account shall be available to promote consolidation of the ownership of vide to the Secretaries such information re- the Secretary of the Interior and the Sec- public and private land in a manner that garding that inholding as is required by the retary of Agriculture, without further act of would allow for better overall resource man- notice. appropriation, to carry out this title. agement; (b) COMPOSITION OF THE EVALUATION (b) USE OF THE FEDERAL LAND DISPOSAL (11) proceeds generated from the disposal TEAM.—The team shall be composed of em- ACCOUNT.—Funds deposited in the Federal of public land may be properly dedicated to ployees of the National Park Service, the Land Disposal Account may be expended as the acquisition of inholdings; and Fish and Wildlife Service, the Bureau of follows— (12) to allow for the least disruption of ex- Land Management, the Department of Agri- (1) except as authorized under paragraph isting land and resource management pro- culture, Forest Service, and other agencies (7), proceeds from the disposal of lands under grams, the Bureau of Land Management may as appropriate. this title shall be used to purchase use non-Federal entities to prepare appraisal (c) TIMING.—The Secretaries shall establish inholdings contained within Federal des- documents for agency review and approval in the Evaluation Team within 90 days after ignated areas; accordance with the applicable appraisal the enactment of this title. (2) acquisition priority shall be given to standards. (d) DUTIES OF THE EVALUATION TEAM.—The those lands which have existed as inholdings SEC. 203. DEFINITIONS. team shall be charged with the identification for the longest period of time, except that In this title: of inholdings within Federally designated the Secretaries may develop criteria for pri- areas, by state, and by the date upon which (1) FEDERALLY DESIGNATED AREAS.—The ority of acquisition considering the fol- the lands or interests therein became term ‘‘Federally designated areas’’ means lowing additional factors— inholdings. Inholdings will be identified land in Alaska and the eleven contiguous (A) limits in size or cost in order to maxi- Western States as defined in section 103(o) of using— (1) the list of inholdings identified by own- mize the utilization of funds among eligible the Federal Land Policy and Management ers pursuant to subsection (a)(2); and inholdings; and Act (43 U.S.C. 1702(o)) that on the date of en- (2) tracts of land identified through exist- (B) other relevant factors including, but actment of this title was within the bound- ing agency planning processes. not limited to, the condition of title and the ary of— (e) REPORT.—The Secretaries shall submit existence of hazardous substances; (A) a unit of the National Park System; a report to the Committee on Energy and (3) acquisition of any inholding under this (B) National Monuments, Areas of Critical Natural Resources and the Committee on section shall be on a willing seller basis con- Environmental Concern, National Conserva- Appropriations of the Senate, and the Com- tingent upon the conveyance of title accept- tion Areas, National Riparian Conservation mittee on Resources and the Committee on able to the appropriate Secretary utilizing Areas, Research Natural Areas, Outstanding Appropriations of the House of Representa- title standards of the Attorney General; Natural Areas, and National Natural Land- tives on the status of their evaluations with- (4) all proceeds, including interest, from marks managed by the Bureau of Land Man- in one year after the enactment of this title, the disposal of lands under section 205 shall agement. and at the end of each 180 days increment be expended within the state in which they (C) National Recreation Areas, National thereafter until such time as reasonable ef- were generated until a reasonable effort has Scenic Areas, National Monuments, National forts to identify inholdings have been made been made to acquire all inholdings identi- Volcanic Areas, and other areas within the or the program established in section 205 ter- fied by the evaluation team pursuant to sec- National Forest System designated for spe- minates. tion 204 within that state; cial management by an Act of Congress; (f) FUNDING.—Funding to carry out this (5) upon the acquisition of all inholdings (D) a unit of the National Wildlife Refuge section shall be taken from operating funds under paragraph (4), proceeds may be ex- System; and of the agencies involved and shall be reim- pended in other states, and a priority shall (E) a wilderness area designated under the bursed from the account established under be established in order of those states having Wilderness Act of 1964, as amended (16 U.S.C. section 206. the greatest inventory of unacquired 1131 et seq.); an area designated under the SEC. 205. DISPOSAL OF SURPLUS PUBLIC LAND. inholdings as of the beginning of the fiscal Wild and Scenic Rivers Act, as amended (16 (a) IN GENERAL.—The Secretary of the In- year in which the excess proceeds become U.S.C. 1271 et seq.); and an area designated terior (in this section, the ‘‘Secretary’’) shall available;

VerDate Mar 15 2010 00:42 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00053 Fmt 4624 Sfmt 0634 E:\1998SENATE\S10OC8.REC S10OC8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S12324 CONGRESSIONAL RECORD — SENATE October 10, 1998 (6) the acquisition of inholdings under this (2) Provide for innovative management by HAM, Mr. JEFFORDS, Ms. section shall be at fair market value; a Trust, being a wholly owned government MOSELEY-BRAUN, Mr. MACK, Mr. (7) an amount not to exceed 20 percent of corporation comprised of individuals, (ap- BRYAN, and Mr. KERREY): the funds in the Federal Land Disposal Ac- pointed by the President with New Mexican S. 2622. A bill to amend the Internal count shall be used for administrative and input), with appropriate and varied expertise Revenue Code of 1986 to extend certain other expenses necessary to carry out the relevant to the unique management issues. land disposal program under section 205; These individuals will administer the oper- expiring provisions, and for other pur- (c) CONTAMINATED SITES AND SITES DIF- ation, maintenance, management, and use of poses; to the Committee on Finance. FICULT AND UNECONOMIC TO MANAGE.—Funds the ranch, based on appropriate public input THE TAX RELIEF EXTENSION ACT OF 1998 in the account established by section 206 and with governmental oversight; Mr. ROTH. Mr. President, I rise to in- shall not be used to purchase or lands or in- (3) Provide management principles includ- troduce the ‘‘Tax Relief Extension Act terests in lands which, as determined by the ing protection of the unique values of the of 1998’’. I am pleased to have as my agency, contain hazardous substances or are property in all of the areas listed above, and principal cosponsor my distinguished otherwise contaminated, or which, because demonstration of sustainable land use in- of their location or other characteristics, cluding recreational opportunities, selective friend and Ranking Member of the Fi- would be difficult or uneconomic to manage timbering, limited grazing and hunting, and nance Committee, DANIEL PATRICK as Federal land. the use of appropriate range and silvicul- MOYNIHAN. Fifteen Finance Committee (d) INVESTMENT OF PRINCIPAL.—Funds de- tural management with significant species Members have joined Senator MOY- posited as principal in the Federal Land Dis- diversity. Management shall be in further- NIHAN and myself on this bill. posal Account shall earn interest in the ance of these goals and provide for the even- Before I discuss the Finance Com- amount determined by the Secretary of the tual financial self-sufficiency of the oper- mittee bill, I’d like to comment on the Treasury based on the current average mar- ation without violating other management ket yield on outstanding marketable obliga- House bill. goals; Chairman ARCHER and I attempted to tions of the United States of comparable ma- (4) Provide an opportunity for the Trust, turities. should it not achieve financial self-suffi- negotiate a bill that would address ex- (e) LAND AND WATER CONSERVATION FUND ciency by its ninth year of operation, to con- piring tax and trade provisions. ACT.—Funds made available under this sec- tinue operating upon agreement between Chairman ARCHER and I had many tion shall be supplemental to any funds ap- Congress and the President, after showing discussions and made a lot of progress propriated under the Land and Water Con- rationale for not attaining a financially self- in trying to resolve differences on ex- servation Fund Act (16 U.S.C. 460l–4 through sufficient operation; and tenders, but we were unable to reach 460l–6a, 460l–7 through 460l–10, 460l–10a–d, 460l– (5) Provide for an initial appropriation in agreement. Let me say the House bill 11). an amount necessary for management of the has many worthwhile proposals that (f) TERMINATION.—On termination of the property. program under section 205— The parties further agree to work together we in the Senate should support. (1) the Federal Land Disposal Account to make available the $20 million appro- Mr. President, we find ourselves in a shall be terminated; and priated in the 1998 Land and Water Conserva- difficult situation. Although the House (2) any remaining balance in such account tion Fund, the $20 million in FY99 requested bill has many good proposals, it is un- shall become available for appropriation by the President for use to purchase the likely the House bill will move by under section 3 of the Land and Water Con- Baca ranch, and additional funds necessary unanimous consent in the Senate in its servation Fund Act (16 U.S.C. 460l–6). to complete the purchase following an ac- present form. We will not be able to ob- SEC. 208. SPECIAL PROVISIONS. ceptable and reasonable appraisal and agree- tain unanimous consent because the (a) IN GENERAL.—Nothing in this title shall ment on price between buyer and seller. be construed as an exemption from any ex- House resisted negotiations on expiring II. INHOLDER RELIEF AND SURPLUS LAND isting limitation on the acquisition of lands provisions important to Members of DISPOSAL of interests therein under any Federal law. the Senate. Millions of acres of private land lie within (b) SANTINI-BURTON ACT.—The provisions I remain hopeful that the House and of this title shall not apply to lands eligible the boundaries of Federal land management Senate can reach agreement on an ex- for sale pursuant to the Santini-Burton Act units. BLM currently has authority to exchange or sell lands identified for disposal in tenders bill. I believe the Finance Com- (94 Stat. 3381). mittee is taking a step today that can (c) EXCHANGES.—Nothing in this title shall its planning process. Using proceeds gen- be construed as precluding, pre-empting, or erated from the disposal of these public lands lead us to that agreement. limiting the authority to exchange lands to purchase inholdings in federally des- Mr. President, this bill is the product under the Federal Land Policy and Manage- ignated areas from willing sellers would sup- of a Finance Committee meeting yes- ment Act of 1976 (43 U.S.C. 1701 et seq.), or plement funds appropriated under the Land terday. At that meeting, a bi-partisan the Federal Land Exchange Facilitation Act and Water Conservation Fund. Legislation to majority of the committee agreed on a of 1988 (site). address these interrelated land management package to address expiring tax and (d) RIGHT OR BENEFIT.—This title is in- problems will— (1) Establish a program to conduct apprais- trade provisions—the so-called extend- tended to provide direction regarding Fed- ers. This bill is meant to be offered as eral land management. Nothing herein is in- als and other legal requirements for the dis- tended to, or shall create a right or benefit, posal of public land identified in existing a substitute to H.R. 4738, the House ex- substantive or procedural, enforceable at law BLM management plans as surplus; tender bill. or in equity by a party against the United (2) Establish a special account for the re- We expect to consider the House bill States, its agencies, its officers, or any other ceipts generated from the disposal of these together with the Finance Committee person. lands, available to the Secretaries to acquire bill shortly. inholdings without further appropriation, This Finance Committee bill follows STATEMENT OF PRINCIPLES provided— The acquisition will be from willing sell- three principles: I. BACA RANCH ers, with priority given to lands existing as All non-controversial expiring provisions The Baca ranch in New Mexico is a unique inholdings for the longest time; are covered; land area, with significant scientific, cul- Proceeds from the sale of surplus lands No policy changes are made to the extend- tural, historic, recreational, ecological, and must be spent within the state in which they ers—only date changes; and production values. Management of this were generated until all available inholdings The package is fully offset. working ranch by the current owners has in- are purchased; The purpose of this bill is to leave cluded limited grazing, hunting, and timber The proceeds in the special account are to tax policy on the expiring provisions harvesting, and it depicts a model for sus- supplement, not supplant, appropriations to settled until the next Congress. At that tainable land development and use. It is our the Land and Water Conservation Fund; and intention to continue to follow this model. time, hopefully, we will be considering An appropriate amount of the proceeds will a major tax cut bill. When we are con- The unique nature of the Baca ranch re- be used to conduct appraisal and other ad- quires a unique program for appropriate ministrative steps necessary to complete the sidering that tax cut bill next year, we preservation, operation and maintenance of sale of surplus lands; and will be able to address the policy and the ranch. (3) Terminates the land disposal program long-term period of the various provi- Legislation to authorize the Federal acqui- and account after ten years. sions. sition and establish a unique management By Mr. ROTH (for himself, Mr. This bill is necessarily narrow. There framework will: MOYNIHAN, Mr. CHAFEE, Mr. are no Member provisions in this bill, (1) Provide for federal acquisition of the Baca Ranch property by the U.S. Forest BAUCUS, Mr. GRASSLEY, Mr. including some I am interested in. In Service, assuming agreement with the cur- ROCKEFELLER, Mr. HATCH, Mr. order to expedite this bill, the Finance rent owners on a fair price based on an objec- BREAUX, Mr. D’AMATO, Mr. CON- Committee Members on this bill agreed tive appraisal; RAD, Mr. MURKOWSKI, Mr. GRA- to forego Member issues.

VerDate Mar 15 2010 00:42 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00054 Fmt 4624 Sfmt 0634 E:\1998SENATE\S10OC8.REC S10OC8 mmaher on DSKCGSP4G1 with SOCIALSECURITY October 10, 1998 CONGRESSIONAL RECORD — SENATE S12325 This bill extends several important There being no objection, the mate- (C) by striking ‘‘24 months’’ and inserting provisions in the tax and trade areas, rial was ordered to be printed in the ‘‘36 months’’. including: RECORD, as follows: (2) TECHNICAL AMENDMENT.—Subparagraph (D) of section 45C(b)(1) is amended by strik- The research and development tax credit; S. 2622 ing ‘‘June 30, 1998’’ and inserting ‘‘June 30, The work opportunity tax credit; Be it enacted by the Senate and House of Rep- 1999’’. The welfare to work tax credit; resentatives of the United States of America in (b) EFFECTIVE DATE.—The amendments The full deductibility of contributions of Congress assembled, made by this section shall apply to amounts appreciated stock to private foundations; SECTION 1. SHORT TITLE; AMENDMENT OF 1986 paid or incurred after June 30, 1998. The active financing exception to Subpart CODE; TABLE OF CONTENTS. F for financial services operations overseas; SEC. 102. WORK OPPORTUNITY CREDIT. (a) SHORT TITLE.—This Act may be cited as (a) TEMPORARY EXTENSION.—Subparagraph The tax information reporting access for the ‘‘Tax Relief Extension Act of 1998’’. the Department of Education for the Federal (B) of section 51(c)(4) (relating to termi- (b) AMENDMENT OF 1986 CODE.—Except as nation) is amended by striking ‘‘June 30, student aid programs; otherwise expressly provided, whenever in The Generalized System of Preferences 1998’’ and inserting ‘‘June 30, 1999’’. this Act an amendment or repeal is ex- (b) EFFECTIVE DATE.—The amendment (‘‘GSP’’); and pressed in terms of an amendment to, or re- The trade adjustment assistance (‘‘TAA’’) made by this section shall apply to individ- peal of, a section or other provision, the ref- program. uals who begin work for the employer after erence shall be considered to be made to a June 30, 1998. In addition to extenders, the Finance section or other provision of the Internal SEC. 103. WELFARE-TO-WORK CREDIT. Committee bill speeds up the full de- Revenue Code of 1986. Subsection (f) of section 51A (relating to ductibility of health insurance deduc- (c) TABLE OF CONTENTS.— termination) is amended by striking ‘‘April tion for self-employed persons. This Sec. 1. Short title; amendment of 1986 Code; 30, 1999’’ and inserting ‘‘June 30, 1999’’. bill also addresses time sensitive farm- table of contents. SEC. 104. CONTRIBUTIONS OF STOCK TO PRIVATE related issues. TITLE I—EXTENSION OF EXPIRING FOUNDATIONS. The final provision in this bill would PROVISIONS (a) IN GENERAL.—Subparagraph (D)(ii) of correct an upcoming problem for mil- Subtitle A—Tax Provisions section 170(e)(5) is amended by striking ‘‘June 30, 1998’’ and inserting ‘‘June 30, 1999’’. lions of middle income taxpayers. The Sec. 101. Research credit. (b) EFFECTIVE DATE.—The amendment Sec. 102. Work opportunity credit. Taxpayer Relief Act of 1997 included made by this section shall apply to contribu- Sec. 103. Welfare-to-work credit. tax relief for America’s working fami- tions made after June 30, 1998. lies in the form of the $500 per child tax Sec. 104. Contributions of stock to private foundations. SEC. 105. SUBPART F EXEMPTION FOR ACTIVE FI- NANCING INCOME. credit and the Hope Scholarship tax Sec. 105. Subpart F exemption for active fi- (a) IN GENERAL.—Paragraph (9) of section credit, and other benefits. Taxpayers nancing income. 954(h) (relating to application) is amended to will expect to see these benefits when Sec. 106. Credit for producing fuel from a read as follows: they file their returns on April 15th. nonconventional source. ‘‘(9) APPLICATION.—This subsection shall What some of these families will find Sec. 107. Disclosure of return information on apply to— income contingent student is that the tax relief they expected will ‘‘(A)(i) the first full taxable year of a for- loans. not materialize because of the alter- eign corporation beginning after December native minimum tax (‘‘AMT’’). That is, Subtitle B—Trade Provisions 31, 1997, and before January 1, 1999, and the these tax credits do not count against Sec. 111. Extension of duty-free treatment taxable year of such corporation imme- the alternative minimum tax. The under General System of Pref- diately following such taxable year, or final provision in the Finance Com- erences. ‘‘(ii) if a foreign corporation has no such mittee bill would provide that benefits Sec. 112. Trade adjustment assistance. first full taxable year, the first taxable year such as the $500 per child tax credit TITLE II—OTHER TAX PROVISIONS of such corporation beginning after Decem- ber 31, 1998, and before January 1, 2000, and would count against the alternative Sec. 201. 100-percent deduction for health insurance costs of self-employed ‘‘(B) taxable years of United States share- minimum tax. holders of a foreign corporation with or This point deserves emphasis. We can individuals. Sec. 202. Production flexibility contract within which the corporation’s taxable years correct this problem for millions of payments. described in subparagraph (A) end.’’ taxpayers in this bill. As Chairman of Sec. 203. Income averaging for farmers made (b) CONFORMING AMENDMENT.—Section the Finance Committee, I consider it permanent. 1175(c) of the Taxpayer Relief Act of 1997 is my responsibility to simplify the tax Sec. 204. Nonrefundable personal credits repealed. code whenever possible. This last provi- fully allowed against regular SEC. 106. CREDIT FOR PRODUCING FUEL FROM A tax liability during 1998. NONCONVENTIONAL SOURCE. sion provides us with that opportunity. (a) IN GENERAL.—Section 29(g)(1)(A) is I am pleased the Members of the Fi- TITLE III—REVENUE OFFSET amended by striking ‘‘July 1, 1998’’ and in- nance Committee back me in this ef- Sec. 301. Treatment of certain deductible serting ‘‘July 1, 1999’’. fort. liquidating distributions of reg- (b) EFFECTIVE DATE.—The amendment Finally, I’d like return to the Sen- ulated investment companies made by this section shall apply to facilities ate’s procedures, schedule, and the and real estate investment placed in service after June 30, 1998. prospects for extender legislation. trusts. SEC. 107. DISCLOSURE OF RETURN INFORMA- TITLE IV—TECHNICAL CORRECTIONS TION ON INCOME CONTINGENT STU- It is important to recognize that the DENT LOANS. Sec. 401. Definitions; coordination with House and Senate are very different Subparagraph (D) of section 6103(l)(13) (re- other titles. bodies governed by starkly different lating to disclosure of return information to Sec. 402. Amendments related to Internal carry out income contingent repayment of rules and traditions. Unlike the House, Revenue Service Restructuring student loans) is amended by striking ‘‘Sep- the Senate Rules and schedule do not and Reform Act of 1998. tember 30, 1998’’ and inserting ‘‘September allow us to move this bill at this point Sec. 403. Amendments related to Taxpayer 30, 2004’’. in any other way than by unanimous Relief Act of 1997. consent. If we are to address these tax Sec. 404. Amendments related to Tax Re- Subtitle B—Extension of Expired Trade and trade provisions, we will need the form Act of 1984. Provisions cooperation of every Senator. Sec. 405. Other amendments. SEC. 111. EXTENSION OF DUTY-FREE TREATMENT If we can get every Senator’s co- Sec. 406. Amendments related to Uruguay UNDER GENERAL SYSTEM OF PREF- Round Agreements Act. ERENCES. operation, and resolve our differences (a) IN GENERAL.—Section 505 of the Trade with the House, I believe we can deliver TITLE I—EXTENSION OF EXPIRING PROVISIONS Act of 1974 (19 U.S.C. 2465) is amended by an extenders bill the President will striking ‘‘June 30, 1998’’ and inserting ‘‘De- sign. Subtitle A—Tax Provisions cember 31, 1999’’. I urge my colleagues to support this SEC. 101. RESEARCH CREDIT. (b) EFFECTIVE DATE.— Finance Committee bill. (a) TEMPORARY EXTENSION.— (1) IN GENERAL.—The amendments made by Mr. President, I ask unanimous con- (1) IN GENERAL.—Paragraph (1) of section this section apply to articles entered on or 41(h) (relating to termination) is amended— after October 1, 1998. sent that the text of the bill, a section- (A) by striking ‘‘June 30, 1998’’ and insert- (2) RETROACTIVE APPLICATION FOR CERTAIN by-section analysis, and revenue table ing ‘‘June 30, 1999’’, LIQUIDATIONS AND RELIQUIDATIONS.— of the legislation, be printed in the (B) by striking ‘‘24-month’’ and inserting (A) GENERAL RULE.—Notwithstanding sec- RECORD. ‘‘36-month’’, and tion 514 of the Tariff Act of 1930 or any other

VerDate Mar 15 2010 00:42 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00055 Fmt 4624 Sfmt 0634 E:\1998SENATE\S10OC8.REC S10OC8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S12326 CONGRESSIONAL RECORD — SENATE October 10, 1998 provision of law and subject to paragraph (3), SEC. 203. INCOME AVERAGING FOR FARMERS ‘‘Subparagraph (C) shall not apply to any any article that was entered— MADE PERMANENT. qualified revocable trust (as defined in sec- (i) after June 30, 1998, and Subsection (c) of section 933 of the Tax- tion 645(b)(1)) with respect to liability for tax (ii) before October 1, 1998, and payer Relief Act of 1997 is amended by strik- for any taxable year ending after the date of to which duty-free treatment under title V ing ‘‘, and before January 1, 2001’’. the decedent’s death and before the applica- of the Trade Act of 1974 would have applied SEC. 204. NONREFUNDABLE PERSONAL CREDITS ble date (as defined in section 645(b)(2)).’’. if the entry had been made on June 30, 1998, FULLY ALLOWED AGAINST REGULAR (c) AMENDMENTS RELATED TO SECTION 3201 TAX LIABILITY DURING 1998. shall be liquidated or reliquidated as free of OF 1998 ACT.— (a) IN GENERAL.—Subsection (a) of section duty, and the Secretary of the Treasury (1) Section 7421(a) of the 1986 Code is 26 is amended by adding at the end the fol- shall refund any duty paid with respect to amended by striking ‘‘6015(d)’’ and inserting lowing flush sentence: such entry. ‘‘6015(e)’’. (B) LIMITATIONS ON REFUNDS.—No refund ‘‘For purposes of paragraph (2), the tax- (2) Subparagraph (A) of section 6015(e)(3) is shall be made pursuant to this paragraph be- payer’s tentative minimum tax for any tax- amended by striking ‘‘of this section’’ and fore October 1, 1998. able year beginning during 1998 shall be inserting ‘‘of subsection (b) or (f)’’. (C) ENTRY.—As used in this paragraph, the treated as being zero.’’ (d) AMENDMENT RELATED TO SECTION 3301 (b) CONFORMING AMENDMENT.—Section term ‘‘entry’’ includes a withdrawal from OF 1998 ACT.—Paragraph (2) of section 3301(c) warehouse for consumption. 24(d)(2) is amended by striking ‘‘The credit’’ of the 1998 Act is amended by striking ‘‘The (3) REQUESTS.—Liquidation or reliquida- and ‘‘For taxable years beginning after De- amendments’’ and inserting ‘‘Subject to any tion may be made under paragraph (2) with cember 31, 1998, the credit’’. applicable statute of limitation not having (c) EFFECTIVE DATE.—The amendments respect to an entry only if a request therefor expired with regard to either a tax under- made by this section shall apply to taxable is filed with the Customs Service, within 180 payment or a tax overpayment, the amend- years beginning after December 31, 1997. days after the date of enactment of this Act, ments’’. that contains sufficient information to en- TITLE III—REVENUE OFFSET (e) AMENDMENT RELATED TO SECTION 3401 able the Customs Service— SEC. 301. TREATMENT OF CERTAIN DEDUCTIBLE OF 1998 ACT.—Section 3401(c) of the 1998 Act (A) to locate the entry; or LIQUIDATING DISTRIBUTIONS OF is amended— (B) to reconstruct the entry if it cannot be REGULATED INVESTMENT COMPA- (1) in paragraph (1), by striking ‘‘7443(b)’’ located. NIES AND REAL ESTATE INVEST- MENT TRUSTS. and inserting ‘‘7443A(b)’’; and SEC. 112. TRADE ADJUSTMENT ASSISTANCE. (2) in paragraph (2), by striking ‘‘7443(c)’’ (a) IN GENERAL.—Section 332 (relating to (a) AUTHORIZATION OF APPROPRIATIONS.— complete liquidations of subsidiaries) is and inserting ‘‘7443A(c)’’. (1) IN GENERAL.—Section 245 of the Trade amended by adding at the end the following (f) AMENDMENT RELATED TO SECTION 3433 OF Act of 1974 (19 U.S.C. 2317) is amended— new subsection: 1998 ACT.—Section 7421(a) of the 1986 Code is (A) in subsection (a), by striking ‘‘1993, ‘‘(c) DEDUCTIBLE LIQUIDATING DISTRIBU- amended by inserting ‘‘6331(i),’’ after 1994, 1995, 1996, 1997, and 1998,’’ and inserting TIONS OF REGULATED INVESTMENT COMPANIES ‘‘6246(b),’’. ‘‘1998 and 1999,’’; and AND REAL ESTATE INVESTMENT TRUSTS.—If a (g) AMENDMENT RELATED TO SECTION 3467 (B) in subsection (b), by striking ‘‘1994, corporation receives a distribution from a OF 1998 ACT.—The subsection (d) of section 1995, 1996, 1997, and 1998,’’ and inserting ‘‘1998 regulated investment company or a real es- 6159 of the 1986 Code relating to cross ref- and 1999,’’. tate investment trust which is considered erence is redesignated as subsection (e). (2) ASSISTANCE FOR FIRMS.—Section 256(b) under subsection (b) as being in complete liq- (h) AMENDMENT RELATED TO SECTION 3708 of the Trade Act of 1974 (19 U.S.C. 2346(b)) is uidation of such company or trust, then, not- OF 1998 ACT.—Subparagraph (A) of section amended by striking ‘‘1993, 1994, 1995, 1996, withstanding any other provision of this 6103(p)(3) of the 1986 Code is amended by in- 1997, and’’ and inserting ‘‘, and 1999,’’ after chapter, such corporation shall recognize serting ‘‘(f)(5),’’ after ‘‘(c), (e),’’. ‘‘1998’’. and treat as a dividend from such company (i) AMENDMENTS RELATED TO SECTION 5001 (b) TERMINATION.—Section 285(c) of the or trust an amount equal to the deduction OF 1998 ACT.— Trade Act of 1974 (19 U.S.C. 2271 note pre- for dividends paid allowable to such com- (1) Subparagraph (B) of section 1(h)(13) of ceding) is amended— pany or trust by reason of such distribu- the 1986 Code is amended by striking ‘‘para- (1) in paragraph (1), by striking ‘‘Sep- tion.’’ graph (7)(A)’’ and inserting ‘‘paragraph tember 30, 1998’’ and inserting ‘‘June 30, (b) CONFORMING AMENDMENTS.— (7)(A)(i)’’. 1999’’; and (1) The material preceding paragraph (1) of (2)(A) Subparagraphs (A)(i)(II), (A)(ii)(II), (2) in paragraph (2)(A), by striking ‘‘the section 332(b) is amended by striking ‘‘sub- and (B)(ii) of section 1(h)(13) of the 1986 Code day that is’’ and all that follows through ‘‘ef- section (a)’’ and inserting ‘‘this section’’. shall not apply to any distribution after De- fective’’ and inserting ‘‘June 30, 1999’’. (2) Paragraph (1) of section 334(b) is amend- cember 31, 1997, by a regulated investment TITLE II—OTHER TAX PROVISIONS ed by striking ‘‘section 332(a)’’ and inserting company or a real estate investment trust SEC. 201. 100-PERCENT DEDUCTION FOR HEALTH ‘‘section 332’’. with respect to— INSURANCE COSTS OF SELF-EM- (c) EFFECTIVE DATE.—The amendments (i) gains and losses recognized directly by PLOYED INDIVIDUALS. made by this section shall apply to distribu- such company or trust, and (a) IN GENERAL.—Subparagraph (B) of sections after May 21, 1998. (ii) amounts properly taken into account tion 162(l)(1) (relating to special rules for TITLE IV—TECHNICAL CORRECTIONS by such company or trust by reason of hold- health insurance costs of self-employed indi- ing (directly or indirectly) an interest in an- viduals) is amended to read as follows: SEC. 401. DEFINITIONS; COORDINATION WITH OTHER TITLES. other such company or trust to the extent ‘‘(B) APPLICABLE PERCENTAGE.—For pur- that such subparagraphs did not apply to poses of subparagraph (A), the applicable (a) DEFINITIONS.—For purposes of this title— such other company or trust with respect to percentage shall be— such amounts. ‘‘(i) 45 percent for taxable years beginning (1) 1986 CODE.—The term ‘‘1986 Code’’ means the Internal Revenue Code of 1986. (B) Subparagraph (A) shall not apply to in 1999 and 2000, any distribution which is treated under sec- ‘‘(ii) 70 percent for taxable years beginning (2) 1998 ACT.—The term ‘‘1998 Act’’ means the Internal Revenue Service Restructuring tion 852(b)(7) or 857(b)(8) of the 1986 Code as in 2001, and received on December 31, 1997. ‘‘(iii) 100 percent for taxable years begin- and Reform Act of 1998 (Public Law 105–206). (3) 1997 ACT.—The term ‘‘1997 Act’’ means (C) For purposes of subparagraph (A), any ning after December 31, 2001.’’ amount which is includible in gross income (b) EFFECTIVE DATE.—The amendment the Taxpayer Relief Act of 1997 (Public Law of its shareholders under section 852(b)(3)(D) made by this section shall apply to taxable 105–34). or 857(b)(3)(D) of the 1986 Code after Decem- years beginning after December 31, 1998. (b) COORDINATION WITH OTHER TITLES.—For purposes of applying the amendments made ber 31, 1997, shall be treated as distributed SEC. 202. PRODUCTION FLEXIBILITY CONTRACT after such date. PAYMENTS. by any title of this Act other than this title, (D)(i) For purposes of subparagraph (A), in (a) IN GENERAL.—The options under para- the provisions of this title shall be treated as graphs (2) and (3) of section 112(d) of the Fed- having been enacted immediately before the the case of a qualified partnership with re- eral Agriculture Improvement and Reform provisions of such other titles. spect to which a regulated investment com- Act of 1996 (7 U.S.C. 7212(d) (2) and (3)), as in SEC. 402. AMENDMENTS RELATED TO INTERNAL pany meets the holding requirement of effect on the date of the enactment of this REVENUE SERVICE RESTRUC- clause (iii)— Act, shall be disregarded in determining the TURING AND REFORM ACT OF 1998. (I) the subparagraphs referred to in sub- taxable year for which any payment under a (a) AMENDMENT RELATED TO SECTION 1101 paragraph (A) shall not apply to gains and production flexibility contract under sub- OF 1998 ACT.—Paragraph (5) of section 6103(h) losses recognized directly by such partner- title B of title I of such Act (as so in effect) of the 1986 Code, as added by section 1101(b) ship for purposes of determining such com- is properly includible in gross income for of the 1998 Act, is redesignated as paragraph pany’s distributive share of such gains and purposes of the Internal Revenue Code of (6). losses, and 1986. (b) AMENDMENT RELATED TO SECTION 3001 (II) such company’s distributive share of (b) EFFECTIVE DATE.—Subsection (a) shall OF 1998 ACT.—Paragraph (2) of section 7491(a) such gains and losses (as so determined) apply to taxable years ending after Decem- of the 1986 Code is amended by adding at the shall be treated as recognized directly by ber 31, 1995. end the following flush sentence: such company.

VerDate Mar 15 2010 00:42 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00056 Fmt 4624 Sfmt 0634 E:\1998SENATE\S10OC8.REC S10OC8 mmaher on DSKCGSP4G1 with SOCIALSECURITY October 10, 1998 CONGRESSIONAL RECORD — SENATE S12327 The preceding sentence shall apply only if spect to amounts properly taken into action 1.1502-75(d)(5) of the Treasury Regula- the qualified partnership provides the com- count by such trust during 1997, paragraphs tions shall apply with respect to any organi- pany with written documentation of such (5)(A)(i)(I), (5)(A)(ii)(I), and (13)(A) of section zation described in section 1042(b) of the 1997 distributive share as so determined. 1(h) of the 1986 Code (as in effect for taxable Act. (ii) For purposes of clause (i), the term years ending on December 31, 1997) shall not (h) AMENDMENT RELATED TO SECTION 1082 ‘‘qualified partnership’’ means, with respect apply. OF 1997 ACT.—Subparagraph (F) of section to a regulated investment company, any (c) AMENDMENT RELATED TO SECTION 506 OF 172(b)(1) of the 1986 Code is amended by add- partnership if— 1997 ACT.—Section 2001(f)(2) of the 1986 Code ing at the end the following new clause: (I) the partnership is an investment com- is amended by adding at the end the fol- ‘‘(iv) COORDINATION WITH PARAGRAPH (2).— pany registered under the Investment Com- lowing: For purposes of applying paragraph (2), an el- pany Act of 1940, ‘‘For purposes of subparagraph (A), the value igible loss for any taxable year shall be (II) the regulated investment company is of an item shall be treated as shown on a re- treated in a manner similar to the manner in permitted to invest in such partnership by turn if the item is disclosed in the return, or which a specified liability loss is treated.’’ reason of section 12(d)(1)(E) of such Act or an in a statement attached to the return, in a (i) AMENDMENT RELATED TO SECTION 1084 OF exemptive order of the Securities and Ex- manner adequate to apprise the Secretary of 1997 ACT.—Paragraph (3) of section 264(f) of change Commission under such section, and the nature of such item.’’. the 1986 Code is amended by adding at the (III) the regulated investment company (d) AMENDMENTS RELATED TO SECTION 904 end the following flush sentence: and the partnership have the same taxable OF 1997 ACT.— ‘‘If the amount described in subparagraph year. (1) Paragraph (1) of section 9510(c) of the (A) with respect to any policy or contract (iii) A regulated investment company 1986 Code is amended to read as follows: does not reasonably approximate its actual meets the holding requirement of this clause ‘‘(1) IN GENERAL.—Amounts in the Vaccine value, the amount taken into account under with respect to a qualified partnership if (as Injury Compensation Trust Fund shall be subparagraph (A) shall be the greater of the of January 1, 1998)— available, as provided in appropriation Acts, amount of the insurance company liability (I) the value of the interests of the regu- only for— or the insurance company reserve with related investment company in such partner- ‘‘(A) the payment of compensation under spect to such policy or contract (as deter- ship is 35 percent or more of the value of subtitle 2 of title XXI of the Public Health mined for purposes of the annual statement such company’s total assets, or Service Act (as in effect on August 5, 1997) approved by the National Association of In- (II) the value of the interests of the regu- for vaccine-related injury or death with re- surance Commissioners) or shall be such lated investment company in such partner- spect to any vaccine— other amount as is determined by the Sec- ship and all other qualified partnerships is 90 ‘‘(i) which is administered after September retary.’’ percent or more of the value of such com- 30, 1988, and (j) AMENDMENT RELATED TO SECTION 1175 OF pany’s total assets. ‘‘(ii) which is a taxable vaccine (as defined 1997 ACT.—Subparagraph (C) of section (3) Paragraph (13) of section 1(h) of the 1986 in section 4132(a)(1)) at the time compensa- 954(e)(2) of the 1986 Code is amended by strik- Code is amended by adding at the end the tion is paid under such subtitle 2, or ing ‘‘subsection (h)(8)’’ and inserting ‘‘sub- following new subparagraph: ‘‘(B) the payment of all expenses of admin- section (h)(9)’’. ‘‘(D) CHARITABLE REMAINDER TRUSTS.—Sub- istration (but not in excess of $9,500,000 for (k) AMENDMENT RELATED TO SECTION 1205 paragraphs (A) and (B)(ii) shall not apply to any fiscal year) incurred by the Federal Gov- OF 1997 ACT.—Paragraph (2) of section 6311(d) any capital gain distribution made by a trust ernment in administering such subtitle.’’. of the 1986 Code is amended by striking described in section 664.’’ (2) Section 9510(b) of the 1986 Code is ‘‘under such contracts’’ in the last sentence (j) AMENDMENT RELATED TO SECTION 7004 OF amended by adding at the end the following and inserting ‘‘under any such contract for 1998 ACT.—Clause (i) of section 408A(c)(3)(C) new paragraph: the use of credit, debit, or charge cards for of the 1986 Code, as amended by section 7004 ‘‘(3) LIMITATION ON TRANSFERS TO VACCINE the payment of taxes imposed by subtitle of the 1998 Act, is amended by striking the INJURY COMPENSATION TRUST FUND.—No A’’. period at the end of subclause (II) and insert- amount may be appropriated to the Vaccine (l) EFFECTIVE DATE.—The amendments ing ‘‘, and’’. Injury Compensation Trust Fund on and made by this section shall take effect as if (k) EFFECTIVE DATE.—The amendments after the date of any expenditure from the included in the provisions of the 1997 Act to made by this section shall take effect as if Trust Fund which is not permitted by this which they relate. included in the provisions of the 1998 Act to section. The determination of whether an ex- SEC. 404. AMENDMENTS RELATED TO TAX RE- which they relate. penditure is so permitted shall be made with- FORM ACT OF 1984. SEC. 403. AMENDMENTS RELATED TO TAXPAYER out regard to— (a) IN GENERAL.—Subparagraph (C) of sec- RELIEF ACT OF 1997. ‘‘(A) any provision of law which is not con- tion 172(d)(4) of the 1986 Code is amended to (a) AMENDMENTS RELATED TO SECTION 202 tained or referenced in this title or in a rev- read as follows: OF 1997 ACT.— enue Act, and ‘‘(C) any deduction for casualty or theft (1) Paragraph (2) of section 163(h) of the ‘‘(B) whether such provision of law is a losses allowable under paragraph (2) or (3) of 1986 Code is amended by striking ‘‘and’’ at subsequently enacted provision or directly or section 165(c) shall be treated as attributable the end of subparagraph (D), by striking the indirectly seeks to waive the application of to the trade or business; and’’. period at the end of subparagraph (E) and in- this paragraph.’’. (b) CONFORMING AMENDMENTS.— serting ‘‘, and’’, and by adding at the end the (e) AMENDMENTS RELATED TO SECTION 915 (1) Paragraph (3) of section 67(b) of the 1986 following new subparagraph: OF 1997 ACT.— Code is amended by striking ‘‘for losses de- ‘‘(F) any interest allowable as a deduction (1) Section 915 of the 1997 Act is amended— scribed in subsection (c)(3) or (d) of section under section 221 (relating to interest on (A) in subsection (b), by inserting ‘‘or 1998’’ 165’’ and inserting ‘‘for casualty or theft educational loans).’’ after ‘‘1997’’, and losses described in paragraph (2) or (3) of sec- (2)(A) Subparagraph (C) of section 221(b)(2) (B) by amending subsection (d) to read as tion 165(c) or for losses described in section of the 1986 Code is amended— follows: 165(d)’’. (i) by striking ‘‘135, 137,’’ in clause (i), ‘‘(d) EFFECTIVE DATE.—This section shall (2) Paragraph (3) of section 68(c) of the 1986 (ii) by inserting ‘‘135, 137,’’ after ‘‘sections apply to taxable years ending with or within Code is amended by striking ‘‘for losses de- 86,’’ in clause (ii), and calendar year 1997.’’. scribed in subsection (c)(3) or (d) of section (iii) by striking the last sentence. (2) Paragraph (2) of section 6404(h) of the 165’’ and inserting ‘‘for casualty or theft (B) Sections 86(b)(2)(A), 135(c)(4)(A), and 1986 Code is amended by inserting ‘‘Robert T. losses described in paragraph (2) or (3) of sec- 219(g)(3)(A)(ii) of the 1986 Code are each Stafford’’ before ‘‘Disaster’’. tion 165(c) or for losses described in section amended by inserting ‘‘221,’’ after ‘‘137,’’. (f) AMENDMENTS RELATED TO SECTION 1012 165(d)’’. (C) Subparagraph (A) of section 137(b)(3) of OF 1997 ACT.— (3) Paragraph (1) of section 873(b) is amend- the 1986 Code is amended by inserting ‘‘221,’’ (1) Paragraph (2) of section 351(c) of the ed to read as follows: before ‘‘911,’’. 1986 Code, as amended by section 6010(c) of ‘‘(1) LOSSES.—The deduction allowed by (D) Clause (iii) of section 469(i)(3)(E) of the the 1998 Act, is amended by inserting ‘‘, or section 165 for casualty or theft losses de- 1986 Code is amended to read as follows: the fact that the corporation whose stock scribed in paragraph (2) or (3) of section ‘‘(iii) the amounts allowable as a deduction was distributed issues additional stock,’’ 165(c), but only if the loss is of property lo- under sections 219 and 221, and’’. after ‘‘dispose of part or all of the distrib- cated within the United States.’’ (3) The last sentence of section 221(e)(1) of uted stock’’. (c) EFFECTIVE DATES.— the 1986 Code is amended by inserting before (2) Clause (ii) of section 368(a)(2)(H) of the (1) The amendments made by subsections the period ‘‘or to any person by reason of a 1986 Code, as amended by section 6010(c) of (a) and (b)(3) shall apply to taxable years be- loan under any qualified employer plan (as the 1998 Act, is amended by inserting ‘‘, or ginning after December 31, 1983. defined in section 72(p)(4)) or under any con- the fact that the corporation whose stock (2) The amendment made by subsection tract referred to in section 72(p)(5)’’. was distributed issues additional stock,’’ (b)(1) shall apply to taxable years beginning (b) PROVISION RELATED TO SECTION 311 OF after ‘‘dispose of part or all of the distrib- after December 31, 1986. 1997 ACT.—In the case of any capital gain dis- uted stock’’. (3) The amendment made by subsection tribution made after 1997 by a trust to which (g) PROVISION RELATED TO SECTION 1042 OF (b)(2) shall apply to taxable years beginning section 664 of the 1986 Code applies with re- 1997 ACT.—Rules similar to the rules of sec- after December 31, 1990.

VerDate Mar 15 2010 00:42 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00057 Fmt 4624 Sfmt 0634 E:\1998SENATE\S10OC8.REC S10OC8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S12328 CONGRESSIONAL RECORD — SENATE October 10, 1998

SEC. 405. OTHER AMENDMENTS. GENERAL FUND.—Section 201(g) of such Act which a taxpayer’s qualified research ex- (a) AMENDMENTS RELATED TO SECTION 6103 (42 U.S.C. 401(g)) is amended— penditures for a taxable year exceeded its OF 1986 CODE.— (1) by inserting before the period in para- base amount for that year. The research tax (1) Subsection (j) of section 6103 of the 1986 graph (1)(A)(ii) the following: ‘‘and the func- credit expired and generally does not apply Code is amended by adding at the end the tions of the Social Security Administration to amounts paid or incurred after June 30, following new paragraph: in connection with the withholding of taxes 1998. ‘‘(5) DEPARTMENT OF AGRICULTURE.—Upon from benefits, as described in section 207(c), A 20-percent research tax credit also ap- request in writing by the Secretary of Agri- pursuant to requests by persons entitled to plied to the excess of (1) 100 percent of cor- culture, the Secretary shall furnish such re- such benefits or such persons’ representative porate cash expenditures (including grants turns, or return information reflected there- payee’’; or contributions) paid for basic research con- on, as the Secretary may prescribe by regu- (2) by inserting before the period at the end ducted by universities (and certain nonprofit lation to officers and employees of the De- of paragraph (1)(A) the following: ‘‘and the scientific research organizations) over (2) the partment of Agriculture whose official du- functions of the Social Security Administra- sum of (a) the greater of two minimum basic ties require access to such returns or infor- tion in connection with the withholding of research floors plus (b) an amount reflecting mation for the purpose of, but only to the ex- taxes from benefits, as described in section any decrease in nonresearch giving to uni- tent necessary in, structuring, preparing, 207(c), pursuant to requests by persons enti- versities by the corporation as compared to and conducting the census of agriculture tled to such benefits or such persons’ rep- such giving during a fixed-base period, as ad- pursuant to the Census of Agriculture Act of resentative payee’’; justed for inflation. This separate credit 1997 (Public Law 105–113).’’. (3) in paragraph (1)(B)(i)(I), by striking computations is commonly referred to as the (2) Paragraph (4) of section 6103(p) of the ‘‘subparagraph (A)),’’ and inserting ‘‘sub- ‘‘university basic research credit’’ (see sec. 1986 Code is amended by striking ‘‘(j)(1) or paragraph (A)) and the functions of the So- 41(e)). (2)’’ in the material preceding subparagraph cial Security Administration in connection Computation of allowable credit (A) and in subparagraph (F) and inserting with the withholding of taxes from benefits, Except for certain university basic re- ‘‘(j)(1), (2), or (5)’’. as described in section 207(c), pursuant to research payments made by corporations, the (3) The amendments made by this sub- quests by persons entitled to such benefits or research tax credit applies only to the extent section shall apply to requests made on or such persons’ representative payee,’’; that the taxpayer’s qualifed research expend- after the date of the enactment of this Act. (4) in paragraph (1)(C)(iii), by inserting be- itures for current taxable year exceed its (b) AMENDMENT RELATED TO SECTION 9004 fore the period the following: ‘‘and the func- base amount. The base amount for the cur- OF TRANSPORTATION EQUITY ACT FOR THE 21ST tions of the Social Security Administration rent year generally is computed by multi- CENTURY.— in connection with the withholding of taxes plying the taxpayer’s ‘‘fixed-base percent- (1) Paragraph (2) of section 9503(f) of the from benefits, as described in section 207(c), age’’ by the average amount of the tax- 1986 Code is amended to read as follows: pursuant to requests by persons entitled to payer’s gross receipts for the four preceding ‘‘(2) notwithstanding section 9602(b), obli- such benefits or such persons’ representative years. If a taxpayer both incurred qualified gations held by such Fund after September payee’’; research expenditures and had gross receipts 30, 1998, shall be obligations of the United (5) in paragraph (1)(D), by inserting after during each of at least three years from 1984 States which are not interest-bearing.’’ ‘‘section 232’’ the following: ‘‘and the func- through 1988, then its ‘‘fixed-base percent- (2) The amendment made by paragraph (1) tions of the Social Security Administration age’’ is the ratio that its total qualified re- shall take effect on October 1, 1998. in connection with the withholding of taxes search expenditures for the 1984–1988 period (c) AMENDMENT RELATED TO TREASURY AND from benefits as described in section 207(c)’’; bears to its total gross receipts for that pe- GENERAL GOVERNMENT APPROPRIATIONS ACT, and riod (subject to a maximum ratio of .16). All 1999.— (6) in paragraph (4), by inserting after the other taxpayers (so-called ‘‘start-up firms’’) (1) The Treasury and General Government first sentence the following: ‘‘The Board of are assigned a fixed-base percentage of 3 per- Appropriations Act, 1999 is amended by Trustees of such Trust Funds shall prescribe cent. 2 striking section 804 (relating to technical the method of determining the costs which In computing the credit, a taxpayer’s base and clarifying amendments relating to judi- should be borne by the general fund in the amount may not be less than 50 percent of cial retirement program). Treasury of carrying out the functions of the its current-year qualified research expendi- (2) The amendment made by paragraph (1) Social Security Administration in connec- tures. shall take effect as if such section 804 had tion with the withholding of taxes from ben- Alternative incremental research credit regime never been enacted. efits, as described in section 207(c), pursuant Taxpayers are allowed to elect an alter- (d) CLERICAL AMENDMENTS.— to requests by persons entitled to such bene- native incremental research credit regime. If (1) Clause (i) of section 51(d)(6)(B) of the fits or such persons’ representative payee.’’. a taxpayer elects to be subject to this alter- 1986 Code is amended by striking ‘‘rehabilita- (c) EFFECTIVE DATE.—The amendments native regime, the taxpayer is assigned a tion plan’’ and inserting ‘‘plan for employ- made by subsection (b) shall apply to bene- three-tiered fixed-base percentage (that is ment’’. The reference to ‘‘plan for employ- fits paid on or after the first day of the sec- lower than the fixed-base percentage other- ment’’ in such clause shall be treated as in- ond month beginning after the month in wise applicable under present law) and the cluding a reference to the rehabilitation plan which this Act is enacted. credit rate likewise is reduced. Under the al- referred to in such clause as in effect before ternative credit regime, a credit rate of 1.65 the amendment made by the preceding sen- DESCRIPTION OF PROVISIONS IN S. 2622, percent applies to the extent that a tax- tence. THE TAX RELIEF EXTENSION ACT OF 1998 payer’s current-year research expenses ex- (2) Paragraph (3) of section 56(a) of the 1986 ceed a base amount computed by using a Code is amended by striking ‘‘section (Prepared by the Staff of the Joint Committee on Taxation) fixed-base percentage of 1 percent (i.e, the 460(b)(2)’’ and inserting ‘‘section 460(b)(1)’’ base amount equals 1 percent of the tax- INTRODUCTION and by striking ‘‘section 460(b)(4)’’ and in- payer’s average gross receipts for the four serting ‘‘section 460(b)(3)’’. S. 2622, the Tax (Relief) Extension Act of preceding years) but do not exceed a base (3) Paragraph (10) of section 2031(c) of the 1998 (‘‘the Tax Extension Act’’), was intro- amount computed by using a fixed-base per- 1986 Code is amended by striking ‘‘section duced by Senator WILLIAM V. ROTH, JR., Sen- centage of 1.5 percent. A credit rate of 2.2 2033A(e)(3)’’ and inserting ‘‘section ator DANIEL PATRICK MOYNIHAN, and others percent applies to the extent that a tax- 2057(e)(3)’’. on October 10, 1998. payer’s current-year research expenses ex- 1 (4) Subparagraphs (C) and (D) of section This document, prepared by the staff of ceed a base amount computed by using a 6693(a)(2) of the 1986 Code are each amended the Joint Committee on Taxation, describes fixed-base percentage of 1.5 percent but do by striking ‘‘Section’’ and inserting ‘‘sec- the proposals contained in the Tax Extension not exceed a base amount computed by using tion’’. Act. Part I of this document contains the ex- a fixed-base percentage of 2 percent. A credit SEC. 406. AMENDMENTS RELATED TO URUGUAY piring provision proposals, Part II contains rate of 2.75 percent applies to the extent that ROUND AGREEMENTS ACT. other proposals, Part III contains a revenue a taxpayer’s current-year research expenses (a) INAPPLICABILITY OF ASSIGNMENT PROHI- offset proposal, and Part IV contains tax exceed a base amount computed by using a BITION.—Section 207 of the Social Security technical corrections. fixed-base percentage of 2 percent. An elec- Act (42 U.S.C. 407) is amended by adding at TITLE I. EXTENSION OF EXPIRING PROVISIONS tion to be subject to this alternative incre- the end the following new subsection: ‘‘(c) Nothing in this section shall be con- Subtitle A—Tax Provisions mental credit regime may be made for any strued to prohibit withholding taxes from A. EXTENSION OF RESEARCH TAX CREDIT (SEC. taxable year beginning after June 30, 1996, any benefit under this title, if such with- 101 OF THE BILL AND SEC. 41 OF THE CODE) and such an election applies to that taxable year and all subsequent years (in the event holding is done pursuant to a request made Present Law that the credit subsequently is extended by in accordance with section 3402(p)(1) of the General rule Internal Revenue Code of 1986 by the person Congress) unless revoked with the consent of entitled to such benefit or such person’s rep- Section 41 provides for a research tax cred- the Secretary of the Treasury. resentative payee.’’. it equal to 20 percent of the amount by Eligible expenditures (b) PROPER ALLOCATION OF COSTS OF WITH- Qualified research expenditures eligible for HOLDING BETWEEN THE TRUST FUNDS AND THE 1 Footnotes at end of article. the research tax credit consist of: (1) ‘‘in-

VerDate Mar 15 2010 00:42 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00058 Fmt 4624 Sfmt 0634 E:\1998SENATE\S10OC8.REC S10OC8 mmaher on DSKCGSP4G1 with SOCIALSECURITY October 10, 1998 CONGRESSIONAL RECORD — SENATE S12329 house’’ expenses of the taxpayer for wages Effective Date least 18 months (whether or not consecutive) and supplies attributable to qualified re- The extension of the research credit is ef- after the date of enactment of this credit if search; (2) certain time-sharing costs for fective for qualified research expenditures they are hired within 2 years after the date computer use in qualified research; and (3) 65 paid or incurred during the period July 1, that the 18-month total is reached; and (3) percent of amounts paid by the taxpayer for 1998, through June 30, 1999. members of a family who are no longer eligi- qualified conducted on the taxpayer’s behalf ble for family assistance because of either B. EXTENSION OF THE WORK OPPORTUNITY TAX (so-called ‘‘contract research expenses’’). 3 Federal or State time limits, if they are CREDIT (SEC. 102 OF THE BILL AND SEC. 51 OF To be eligible for the credit, the research hired within 2 years after the Federal or must not only satisfy the requirements of THE CODE) State time limits made the family ineligible present-law section 174 but must be under- Present Law for family assistance. taken for the purpose of discovering informa- In general Eligible wages include cash wages paid to tion that is technological in nature, the ap- The work opportunity tax credit an employee plus amounts paid by the em- plication of which is intended to be useful in (‘‘WOTC’’), which expired on June 30, 1998, ployer for the following: (1) educational as- the development of a new or improved busi- was available on an elective basis for em- sistance excludable under a section 127 pro- ness component of the taxpayer, and must ployers hiring individuals from one or more gram (or that would be excludable but for involve a process of experimentation related of eight targeted groups. The credit equals 40 the expiration of sec. 127); (2) health plan to functional aspects, performance, reli- percent (25 percent for employment of 400 coverage for the employee, but not more ability, or quality of a business component. hours or less) of qualified wages. Qualified than the applicable premium defined under Expenditures attributable to research that wages are wages attributable to service ren- section 4980B(f)(4); and (3) dependent care as- is conducted outside the United States do dered by a member of a targeted group dur- sistance excludable under section 129. The welfare to work credit is effective for not enter into the credit computation. In ad- ing the one-year period beginning with the wages paid or incurred to a qualified indi- dition, the credit is not available for re- day the individual began work for the em- vidual who begins work for an employer on search in the social sciences, arts, or human- ployer. For a vocational rehabilitation refer- or after January 1, 1998, and before May 1, ities, nor is it available for research to the ral, however, the period begins on the day 1999. extent funded by any grant, contract, or oth- the individual began work for the employer erwise by another person (or governmental on or after the beginning of the individual’s Description of Proposal entity). vocational rehabilitation plan. The proposal extends the welfare-to-work Relation to deduction The maximum credit per employee if $2,400 credit effective for wages paid or incurred to Deductions allowed to a taxpayer under (40% of the first $6,000 of qualified first-year a qualified individual who begins work for an section 174 (or any other section) are reduced wages). With respect to qualified summer employer on or after May 1, 1999, and before by an amount equal to 100 percent of the tax- youth employees, the maximum credit is July 1, 1999. payer’s research tax credit determined for $1,200 (40% of the first $3,000 of qualified Effective Date the taxable year. Taxpayers may alter- first-year wages). The proposal is effective for wages paid or natively elect to claim a reduced research The employer’s deduction for wages is re- incurred to a qualified individual who begins tax credit amount under section 41 in lieu of duced by the amount of the credit work for an employer on or after May 1, 1999, reducing deductions otherwise allowed (sec. Targeted groups eligible for the credit. and before July 1, 1999. 280C(c)(3)). The eight targeted groups are: (1) families D. EXTEND THE DEDUCTION PROVIDED FOR CON- Description of Proposal eligible to receive benefits under the Tem- TRIBUTIONS OF APPRECIATED STOCK TO PRI- The bill extends the research tax credit for porary Assistance for Needy Families VATE FOUNDATIONS (SEC. 104 OF THE BILL AND 12 months—i.e., generally, for the period (TANF) Program; (2) high-risk youth; (3) SEC. 170(E)(5) OF THE CODE) July 1, 1998, through June 30, 1999. qualified ex-felons; (4) vocational rehabilita- Present Law In extending the credit, the scope of the tion referrals; (5) qualified summer youth In computing taxable income, a taxpayer term ‘‘qualified research’’ is reaffirmed. Sec- employees; (6) qualified veterans; (7) families who itemizes deductions generally is allowed tion 41 targets the credit to research which receiving food stamps; and (8) persons receiv- to deduct the fair market value of property is undertaken for the purpose of discovering ing certain Supplemental Security Income contributed to a charitable organization.4 information which is technological in nature (SSI) benefits. However, in the case of a charitable con- and the application of which is intended to Minimum employment period tribution of short-term gain, inventory, or be useful in the development of a new or im- No credit is allowed for wages paid to em- other ordinary income property, the amount proved business component of the taxpayer. of the deduction generally is limited to the However, eligibility for the credit does not ployees who work less than 120 hours in the first year of employment. taxpayer’s basis in the property. In the case require that the research be successful—i.e., of a charitable contribution of tangible per- the research need not achieve its desired re- Expiration date sonal property, the deduction is limited to sult. Moreover, evolutionary research activi- The credit is effective for wages paid or in- the taxpayer’s basis in such property if the ties intended to improve functionality, per- curred to a qualified individual who began use by the recipient charitable organization formance, reliability, or quality are eligible work for an employer before July 1, 1998. is unrelated to the organization’s tax-exempt for the credit, as are research activities in- Description of Proposal purpose. tended to achieve a result that has already The proposal extends the work opportunity In cases involving contributions to a pri- been achieved by other persons but is not yet vate foundation (other than certain private within the common knowledge (e.g., freely tax credit, for 12 months, through June 30, 1999. operating foundations), the amount of the available to the general public) of the field deduction is limited to the taxpayer’s basis (provided that the research otherwise meets Effective Date in the property. However, under a special the requirements of section 41, including not The proposal is effective for wages paid or rule contained in section 170(e)(5), taxpayers being excluded by subsection (d)(4)). incurred to a qualified individual who begins are allowed a deduction equal to the fair Activities constitute a process of experi- work for any employer on or after July 1, market value of ‘‘qualified appreciated mentation, as required for credit eligibility, 1998, and before July 1, 1999. stock’’ contributed to a private foundation if they involve evaluation of more than one C. EXTENSION OF THE WELFARE-TO-WORK TAX prior to July 1, 1998. Qualified appreciated alternative to achieve a result where the CREDIT (SEC. 103 OF THE BILL AND SEC. 51A OF stock is defined as publicly traded stock means of achieving the result are uncertain THE CODE) which is capital gain property. The fair-mar- at the outset, even if the taxpayer knows at Present Law ket-value deduction for qualified appreciated the outset that it may be technically pos- stock donations applies only to the extent sible to achieve the result. Thus, even The Code provides to employers a tax cred- that total donations made by the donor to though a researcher may know of a par- it on the first $20,000 of eligible wages paid to private foundations of stock in a particular ticular method of achieving an outcome, the qualified long-term family assistance corporation did not exceed 10 percent of the use of the process of experimentation to ef- (AFDC) or its successor program) recipients outstanding stock of that corporation. For fect a new or better method of achieving during the first two years of employment. this purpose, an individual is treated as that outcome may be eligible for the credit The credit is 35 percent of the first $10,000 of making all contributions that were made by (provided that the research otherwise meets eligible wages in the first year of employ- any member of the individual’s family. the requirements of section 41, including not ment and 50 percent of the first $10,000 of eli- Description of Proposal being excluded by subsection (d)(4)). gible wages in the second year of employ- Lastly, the lack of clarity in the interpre- ment. The maximum credit is $8,500 per The proposal extends the special rule con- tation of the distinction between internal- qualified employee. tained in section 170(e)(5) for one year—for use software, the costs of which may be eligi- Qualified long-term family assistance re- contributions of qualified appreciated stock ble for the credit if additional tests are met, cipients are: (1) members of a family that made to private foundations during the pe- and other software has been observed. The has received family assistance for at least 18 riod July 1, 1998, through June 30, 1999. application of the definition of internal-use consecutive months ending on the hiring Effective Date software should fully reflect Congressional date; (2) members of a family that has re- The proposal is effective for contributions intent. ceived family assistance for a total of at of qualified appreciated stock to private

VerDate Mar 15 2010 00:42 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00059 Fmt 4624 Sfmt 0634 E:\1998SENATE\S10OC8.REC S10OC8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S12330 CONGRESSIONAL RECORD — SENATE October 10, 1998 foundations made during the period July 1, In this regard, the income of a corporation termined in accordance with section 1998, through June 30, 1999. engaged in the active conduct of banking or 832(b)(4), and reserves for losses incurred are E. EXCEPTIONS UNDER SUBPART F FOR CERTAIN securities business that is eligible for this determined in accordance with section ACTIVE FINANCING INCOME (SEC. 105 OF THE exception is the income that is treated as 832(b)(5) and 846 of the Code (as well as any BILL AND SECS. 953 AND 954 OF THE CODE) nonpassive under the regulations proposed other rules applicable to a U.S. property and casualty insurance company with respect to Present Law under section 1296(b) (as in effect prior to the enactment of the Taxpayer Relief Act of such amounts). In general 1997). See Prop. Treas. Reg. secs. 1.1296–4 and In the case of a contract regulated in the Under the subpart F rules, certain U.S. 1.1296–6. The Secretary of the Treasury is di- country in which sold as a life insurance or shareholders of a controlled foreign corpora- rected to prescribe regulations applying annuity contract, the following three alter- tion (‘‘CFC’’) are subject to U.S. tax cur- look-through treatment in characterizing for native rules for determining reserves apply. rently on certain income earned by the CFC, this purpose dividends, interest, income Any one of the three rules can be elected whether or not such income is distributed to equivalent to interest, rents and royalties with respect to a particular line of business. the shareholders. The income subject to cur- from related persons. First, reserves for such contracts can be rent inclusion under the subpart F rules in- For purposes of the temporary exception, a determined generally under the rules appli- cludes, among other things, ‘‘foreign per- corporation is considered to be predomi- cable to domestic life insurance companies sonal holding company income’’ and insur- nantly engaged in the active conduct of under subchapter L of the Code, using the ance income. The U.S. 10-percent share- banking, financing, or similar business if it methods there specified, but substituting for holders of a CFC also are subject to current is engaged in the active conduct of a banking the interest rates in Code section 807(d)(2)(B) inclusion with respect to their shares of the or securities business or is a qualified bank an interest rate determined for the country CFC’s foreign base company services income affiliate or qualified securities affiliate. In in which the qualifying insurance company (i.e., income derived from services performed this regard, a corporation is considered to be was created or organized, calculated in the for a related person outside the country in engaged in the active conduct of a banking same manner as the mid-term applicable Federal interest rate (‘‘AFR‘‘) (within the which the CFC is organized). or securities business if the corporation meaning of section 1274(d)). Foreign personal holding company income would be treated as so engaged under the Second, the reserves for such contracts can generally consists of the following: (1) divi- regulations proposed under prior law section be determined using a preliminary term for- dends, interest, royalties, rents and annu- 1296(b) (as in effect prior to the enactment of eign reserve method, except that the interest ities; (2) net gains from the sale or exchange the Taxpayer Relief Act of 1997); qualified rate to be used is the interest rate deter- of (a) property that gives rise to the pre- bank affiliates and qualified securities affili- mined for the country in which the quali- ceding types of income, (b) property that ates are as determined under such proposed fying insurance company was created or or- does not give rise to income, and (c) inter- regulations. See Prop. Treas. Reg. secs. ganized, calculated in the same manner as ests in trusts, partnerships, and REMICs; (3) 1.1296–4 and 1.1296–6. the mid-term AFR. If a qualifying insurance net gains from commodities transactions; (4) Alternatively, a corporation is considered company uses such a preliminary term meth- net gains from foreign currency trans- to be engaged in the active conduct of a od with respect to contracts insuring risks actions; (5) income that is equivalent to in- banking, financing, or similar business if located in the country in which the company terest; (6) income from notional principal more than 70 percent of its gross income is is created or organized, then such method is contracts; and (7) payments in lieu of divi- derived from such business from transactions the method that applies for purposes of this dends. with unrelated persons located within the election. Insurance income subject to current inclu- country under the laws of which the corpora- Third, reserves for such contracts can be sion under the subpart F rules includes any tion is created or organized. For this pur- determined to be equal to the net surrender income of a CFC attributable to the issuing pose, income derived by a qualified business value of the contract (as defined in section or reinsuring of any insurance or annuity unit (‘‘QBU’’) of a corporation from trans- 807(e)(1)(A). contract in connection with risks located in actions with unrelated persons located in the In no event can the reserve for any con- a country other than the CFC’s country of country in which the QBU maintains its tract at any time exceed the foreign state- organization. Subpart F insurance income principal office and conducts substantial ment reserve for the contract, reduced by also includes income attributable to an in- business activity is treated as derived by the any catastrophe or deficiency reserve. This surance contract in connection with risks lo- corporation from transactions with unre- rule applies whether the contract is regu- cated within the CFC’s country of organiza- lated persons located within the country in lated as a property, casualty, health, life in- tion, as the result of an arrangement under which the corporation is created or orga- surance, annuity or any other type of con- which another corporation receives a sub- nized. A person other than a natural person tract. stantially equal amount of consideration for is considered to be located within the coun- A temporary exception from foreign per- insurance of other-country risks. Investment try in which it maintains an office through sonal holding company income also applies income of a CFC that is allocable to any in- which it engages in a trade or business and for income from investment of assets equal surance or annuity contract related to risks by which the transaction is effected. A nat- to: (1) one-third of premiums earned during located outside the CFC’s country of organi- ural person is treated as located within the the taxable year on insurance contracts reg- zation is taxable as subpart F insurance in- country in which such person is physically ulated in the country in which sold as prop- come (Prop. Treas. Reg. sec. 1.953–1(a)). located when such person enters into the erty, casualty, or health insurance con- Temporary exceptions from foreign per- transaction. tracts; and (2) the greater of 10 percent of re- sonal holding company income and foreign Income from the active conduct of an insurance serves, or, in the case of qualifying insurance base company services income apply for sub- business company that is a startup company, $10 mil- part F purposes for certain income that is lion. For this purpose, a startup company is A temporary exception from foreign per- derived in the active conduct of a banking, a company (including any predecessor) that sonal holding company income applies for financing, insurance, or similar business.5 has not been engaged in the active conduct certain investment income of a qualifying These exceptions (described below) are appli- of an insurance business for more than 5 insurance company with respect to risks lo- cable only for taxable years beginning in years. In general, the 5-year period com- cated within the CFC’s country of creation 1998. mences when the foreign company first is en- or organization. These rules differ from the gaged in the active conduct of an insurance Income from the active conduct of a banking, fi- rules of section 953 of the Code, which deter- nancing, or similar business business. If the foreign company was formed mines the subpart F inclusions of a U.S. before being acquired by the U.S. share- A temporary exception from foreign per- shareholder relating to insurance income of holder, the 5-year period commences when sonal holding company income applies to in- a CFC. Such insurance income under section the acquired company first was engaged in come that is derived in the active conduct of 953 generally is computed in accordance with the active conduct of an insurance business. a banking, financing, or similar business by the rules of subchapter L of the Code. In the event of the acquisition of a book of a CFC that is predominantly engaged in the A temporary exception applies for income business from another company through an active conduct of such business. For this (received from a person other than a related assumption or indemnity reinsurance trans- purpose, income derived in the active con- person) from investments made by a quali- action, the 5-year period commences when duct of a banking, financing, or similar busi- fying insurance company of its reserves or 80 the acquiring company first engaged in the ness generally is determined under the prin- percent of its unearned premiums. For this active conduct of an insurance business, ex- ciples applicable in determining financial purpose, in the case of contracts regulated in cept that if more than a substantial part services income for foreign tax credit limita- the country in which sold as property, cas- (e.g., 80 percent) of the business of the ceding tion purposes. However, in the case of a cor- ualty or health insurance contracts, un- company is acquired, then the 5-year period poration that is engaged in the active con- earned premiums and reserves are defined as commences when the ceding company first duct of a banking or securities business, the unearned premiums and reserves for losses engaged in the active conduct of an insur- income that is eligible for this exception is incurred determined using the methods and ance business. Reinsurance transactions determined under the principles applicable interest rates that would be used if the among related persons may not be used to in determining the income which is treated qualifying insurance company were subject multiply the number of 5-year periods. as nonpassive income for purposes of the pas- to tax under subchapter L of the Code. Thus, Under rules prescribed by the Secretary, sive foreign investment company provisions. for this purposed, unearned premiums are de- income is allocated to contracts as follows.

VerDate Mar 15 2010 00:42 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00060 Fmt 4624 Sfmt 0634 E:\1998SENATE\S10OC8.REC S10OC8 mmaher on DSKCGSP4G1 with SOCIALSECURITY October 10, 1998 CONGRESSIONAL RECORD — SENATE S12331 In the case of contracts that are separate ac- through December 31, 2007, by coal or bio- ance (TAA) programs for the purpose of pro- count-type contracts (including variable mass facilities placed in service before July viding assistance to individual workers and contracts not meeting the requirements of 1, 1998, pursuant to a binding written con- firms that are adversely affected by the re- sec. 817), only the income specifically allo- tract in effect before January 1, 1997. duction of barriers to foreign trade. Those cable to such contracts are taken into ac- Description of Proposal programs include— count. In the case of other contracts, income The proposal extends the placed in service (1) The general TAA program for workers not specifically allocable is allocated ratably date, but not the binding contract date, for provides training and income support for among such contracts. facilities producing nonconventional fuels workers adversely affected by import com- A qualifying insurance company is defined from coal and biomass through June 30, 1999. petition. (2) The TAA program for firms provides as any entity which: (1) is regulated as an in- Effective Date surance company under the laws of the coun- technical assistance by qualifying firms. This proposal is effective on the date of entry in which it is incorporated; (2) derived at (3) The third program, the North American actment (i.e., applies to facilities placed in least 50 percent of its net written premiums Free Trade Agreement (‘‘NAFTA’’) program service after June 30, 1998 and before July 1, for workers (established by the North Amer- from the insurance or reinsurance of risks 1999). situated within its country of incorporation; ican Free Trade Agreement Implementation and (3) is engaged in the active conduct of an G. DISCLOSURE OF RETURN INFORMATION TO DE- Act of 1993) provides training and income insurance business and would be subject to PARTMENT OF EDUCATION IN CONNECTION support for workers adversely affected by tax under subchapter L if it were a domestic WITH INCOME CONTINGENT LOANS (SEC. 107 OF trade with or production shifts to Canada THE BILL AND SEC 6103( )(13) OF THE CODE) and/or Mexico. corporation. . l All three TAA programs expired on Sep- The temporary exceptions do not apply to Present Law tember 30, 1998. The TAA program for firms investment income (includable in the income Under section 6103(l)(13) of the Code, the is also subject to annual appropriations. of a U.S. shareholder of a CFC pursuant to Secretary of the Treasury was authorized to sec. 953) allocable to contracts that insure disclose to the Department of Education cer- Description of Proposal related party risks or risks located in a tain return information with respect to any The proposal reauthorizes each of the three country other than the country in which the taxpayer who has received an ‘‘applicable TAA programs through June 30, 1999. qualifying insurance company is created or student loan.’’ An ‘‘applicable student loan’’ Effective Date organized. is any loan made under (1) part D of title IV The proposal is effective on the date of en- of the Higher Education Act of 1965 or (2) Anti-abuse rule actment. parts B or E of title IV of the Higher Edu- TITLE II. OTHER TAX PROVISIONS An anti-abuse rule applies for purposes of cation Act of 1965 which is in default and has these temporary exceptions. For purposes of been assigned to the Department of Edu- A. INCREASE DEDUCTION FOR HEALTH INSUR- applying these exceptions, items with re- cation, if the loan repayment amounts are ANCE EXPENSES OF SELF-EMPLOYED INDIVID- spect to a transaction or series of trans- based in whole or in part on the taxpayer’s UALS (SEC. 201 OF THE BILL AND SEC. 162(L) OF actions are disregarded if one of the prin- income. The Secretary is permitted to dis- THE CODE) cipal purposes of the transaction or trans- close only taxpayer identity information and Present Law actions is to qualify income or gain for these the adjusted gross income of the taxpayer. Under present law, self-employed individ- exceptions, including any change in the The Department of Education may use the uals are entitled to deduct a portion of the method of computing reserves or any other information only to establish the appro- amount paid for health insurance for the transaction or transactions one of the prin- priate income contingent repayment amount self-employed individual and the individual’s cipal purposes of which is the acceleration or for an applicable student loan. spouse and dependents. The deduction for deferral of any item in order to claim the The disclosure authority under section health insurance expenses of self-employed benefits of these exceptions. 6103(l)(13) terminated with respect to re- individuals is not available for any month in Foreign base company services income quests made after September 30, 1998. which the taxpayer is eligible to participate A temporary exception from foreign base Description of Proposal in a subsidized health plan maintained by company services income applies for income The provision reinstates the disclosure au- the employer of the taxpayer or the tax- derived from services performed in connec- thority under section 6103(l)(13) with respect payer’s spouse. The deduction is available in tion with the active conduct of a banking, fi- to requests made after the date of enactment the case of self insurance as well as commer- nancing, insurance or similar business by a and before October 1, 2004. cial insurance. The self-insured plan must in CFC that is predominantly engaged in the Effective Date fact be insurance (e.g., there must be appropriate risk shifting) and not merely a reim- active conduct of such business or is a quali- The disclosure authority under section bursement arrangement. fying insurance company. 6103(l)(13) applies to requests made after the The portion of health insurance expenses date of enactment and before October 1, 2004. Description of Proposal of self-employed individuals that is deduct- The proposal extends for one year the Subtitle B—Trade Provisions ible is 45 percent for taxable years beginning present-law temporary exceptions from for- A. EXTENSION OF THE GENERALIZED SYSTEM OF in 1998 and 1999, 50 percent for taxable years eign personal holding company income and PREFERENCES (SEC. 111 OF THE BILL AND SEC. beginning in 2000 and 2001, 60 percent for tax- foreign base company services income for in- 505 OF THE TRADE ACT OF 1974) able years beginning in 2002, 80 percent for come that is derived in the active conduct of Present Law taxable years beginning in 2003, 2004, and a banking, financing, insurance or similar Title V of the Trade Act of 1974, as amend- 2005, 90 percent for taxable years beginning business. ed, grants authority to the President to pro- in 2006, and 100 percent for taxable years be- Effective Date vide duty-free treatment on imports of cer- ginning in 2007 and thereafter. The proposal applies only to the first full tain articles from beneficiary developing Under present law, employees can exclude taxable year of a foreign corporation begin- countries subject to certain conditions and from income 100 percent of employer-pro- ning in 1998 and to the taxable year of such limitations. To qualify for GSP privileges, vided health insurance. corporation immediately following such first each beneficiary country is subject to var- Description of Proposal full taxable year, and to taxable years of ious mandatory and discretionary eligible The proposal increases the deduction for U.S. shareholders with or within which such criteria. Import sensitive products are ineli- health insurance of self-employed individ- taxable years of such foreign corporation gible for GSP. The GSP program, which is uals to 70 percent for taxable years begin- end. If a foreign corporation does not have designed to promote development through ning in 2001 and to 100 percent for taxable such a first full taxable year beginning in trade rather than traditional aid programs, years beginning in 2002 and thereafter. 1998, the proposal applies only to the first expired after June 30, 1998. Effective Date taxable year of the foreign corporation be- Description of Proposal The proposal is effective for taxable years ginning in 1999, and to taxable years of U.S. The proposal reauthorizes the GSP pro- beginning after December 31, 2000. gram to terminate after December 31, 1999. shareholders with or within which such tax- B. FARM PRODUCTION FLEXIBILITY CONTRACT Refunds are authorized, upon request of the able year of such foreign corporation ends. PAYMENTS (SEC. 202 OF THE BILL) F. EXTEND PLACED IN SERVICE DATE FOR CER- importer, for duties paid between July 1, 1998, and the date of enactment of the bill. Present Law TAIN NONCONVENTIONAL FUELS FACILITIES A taxpayer generally is required to include Effective Date (SEC. 106 OF THE BILL AND SEC. 29 OF THE an item in income no later than the time of CODE) The proposed is effective for duties paid on its actual or constructive receipt, unless Present Law or after July 1, 1998, and before December 31, such amount properly is accounted for in a Under present law, certain fuels produced 1999. different period under the taxpayer’s method from ‘‘nonconventional sources’’ and sold to B. EXTENSION OF THE TRADE ADJUSTMENT AS- of accounting. If a taxpayer has an unre- unrelated parties are eligible for an infla- SISTANCE PROGRAM (SEC. 112 OF THE BILL AND stricted right to demand the payment of an tion-adjusted income tax credit (equal to SEC. 245 OF THE TRADE ACT OF 1974) amount, the taxpayer is in constructive re- $6.10 in 1997) per barrel of oil or British Ther- Present Law ceipt of that amount whether or not the tax- mal Unit barrel oil equivalent. The credit is Title II of the Trade Act of 1974, as amend- payer makes the demand and actually re- available for qualified fuels produced ed, authorizes three trade adjustment assist- ceives the payment.

VerDate Mar 15 2010 00:42 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00061 Fmt 4624 Sfmt 0634 E:\1998SENATE\S10OC8.REC S10OC8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S12332 CONGRESSIONAL RECORD — SENATE October 10, 1998 The Federal Agriculture Improvement and Description of Proposal their shareholders. The deduction for divi- Reform Act of 1996 (the ‘‘FAIR Act’’) pro- The proposal permanently extends the in- dends paid includes amounts distributed in vides for production flexibility contracts become averaging provision for farmers. liquidation which are properly chargeable to tween certain eligible owners and producers earnings and profits, as well as, in the case Effective Date and the Secretary of Agriculture. These con- of a complete liquidation occurring within 24 tracts generally cover crop years from 1996 The proposal is effective for taxable years months after the adoption of a plan of com- through 2002. Annual payments are made beginning after December 31, 2000. plete liquidation, any distribution made pur- under such contracts at specific times during D. PERSONAL CREDITS FULLY ALLOWED AGAINST suant to such plan to the extent of earnings the Federal government’s fiscal year. Sec- REGULAR TAX LIABILITY DURING 1998 (SEC. 204 and profits. Rules that govern the receipt of tion 112(d)(2) of the FAIR Act provides that OF THE BILL AND SEC. 26 OF THE CODE) dividends from RICs and REITs generally one-half of each annual payment is to be Present law provides for certain non- provide for including the amount of the divi- made on either December 15 or January 15 of refundable personal tax credits (i.e., the de- dend in the income of the shareholder receiv- the fiscal year, at the option of the recipi- pendent care credit, the credit for the elderly ing the dividend that was deducted by the ent.6 This option to receive the payment on and disabled, the adoption credit, the child RIC or REIT. Generally, any shareholder re- December 15 potentially results in the con- tax credit, the credit for interest on certain alizing gain from a liquidating distribution structive receipt (and thus potential inclu- home mortgages, the HOPE Scholarship and of a RIC or REIT includes the amount of sion in income) of one-half of the annual Lifetime Learning credits, and the D.C. gain in the shareholder’s income. However, payment at that time, even if the option to homebuyer’s credit). Generally, these credits in the case of a liquidating distribution to a receive the amount on January 15 is elected. are allowed only to the extent that the indi- corporation owning 80-percent of the stock of The remaining one-half of the annual pay- vidual’s regular income tax liability exceeds the distributing corporation, a separate rule ment must be made no later than September the individual’s tentative minimum tax (de- generally provides that the distribution is 30 of the fiscal year. The Emergency Farm termined without regard to the AMT foreign tax-free to the parent corporation. The par- Financial Relief Act of 1998 added section tax credit). ent corporation succeeds to the tax at- 112(d)(3) to the FAIR Act which provides that The tentative minimum tax is an amount tributes, including the adjusted basis of as- all payments for fiscal year 1999 are to be equal to (1) 26 percent of the first $175,000 sets, of the distributing corporation. Under paid at such time or times during fiscal year ($87,500 in the case of a married individual these rules, a liquidating RIC or REIT might 1999 as the recipient may specify. Thus, the filing a separate return) of alternative min- be allowed a deduction for amounts paid to one-half of the annual amount that would imum taxable income (‘‘AMTI’’) in excess of its parent corporation, without a cor- otherwise be required to be paid no later a phased-out exemption amount and (2) 28 responding inclusion in the income of the than September 30, 1999 can be specified for percent of the remaining AMTI. The max- parent corporation, resulting in income payment in calendar year 1998. This poten- imum tax rates on net capital gain used in being subject to no tax. tially results in the constructive receipt (and computing the tentative minimum tax are A RIC or REIT may designate a portion of thus required inclusion in taxable income) of the same as under the regular tax. AMTI is a dividend as a capital gain dividend to the such amounts in calendar year 1998, whether the individual’s taxable income adjusted to extent the RIC or REIT itself has a net cap- or not the amounts actually are received or take account of specified preferences and ad- ital gain, and a RIC may designate a portion the right to their receipt is fixed. justments. The exemption amounts are: (1) of the dividend paid to a corporate share- Description of Proposal $45,000 in the case of married individuals fil- holder as eligible for the 70-percent divi- The time a production flexibility contract ing a joint return and surviving spouses; (2) dends-received deduction to the extent the payment under the FAIR Act properly is in- $33,750 in the case of other unmarried indi- RIC itself received dividends from other cor- cludable in income is determined without re- viduals; and (3) $22,500 in the case of married porations. If certain conditions are satisfied, gard to the options granted by section individuals filing a separate return, estates a RIC also is permitted to pass through to its 112(d)(2) (allowing receipt of one-half of the and trusts. The exemption amounts are shareholders the tax-exempt character of the annual payment on either December 15 or phased out by an amount equal to 25 percent RIC’s net income from tax-exempt obliga- January 15 of the fiscal year) or section of the amount by which the individual’s tions through the payment of ‘‘exempt inter- 112(d)(3) (allowing the acceleration of all AMTI exceeds (1) $150,000 in the case of mar- est dividends,’’ though no deduction is al- payments for fiscal year 1999) of that Act. ried individuals filing a joint return and sur- lowed for such dividends. Effective Date viving spouses, (2) $112,500 in the case of other unmarried individuals, and (3) $75,000 Description of Proposal The proposal is effective for production in the case of married individuals filing sepa- flexibility contract payments made under Any amount which a liquidating RIC or rate returns or an estate or a trust. These the FAIR Act in taxable years ending after REIT may take as a deduction for dividends amounts are not indexed for inflation. December 31, 1995. paid with respect to an otherwise tax-free For families with three or more qualifying liquidating distribution to an 80-percent cor- C. PERMANENT EXTENSION OF INCOME AVER- children, an additional child credit is pro- porate owner is includible in the income of AGING FOR FARMERS (SEC. 203 OF THE BILL vided which may offset the liability for so- the recipient corporation. The includible AND SEC. 1301 OF THE CODE) cial security taxes to the extent that tax li- amount is treated as a dividend received Present Law ability exceeds the amount of the earned in- from the RIC or REIT. The liquidating cor- An individual engaged in a farming busi- come credit. The additional child credit is poration may designate the amount distrib- ness may elect to compute his or her current reduced by the amount of the individual’s uted as a capital gain dividend or, in the case year tax liability by averaging, over the minimum tax liability (i.e., the amount by of a RIC, a dividend eligible for the 70-per- prior three-year period, all or a portion of which the tentative minimum tax exceeds cent dividends received deduction or an ex- the taxable income that is attributable to the regular tax liability). empt interest dividend, to the extent pro- the farming business. Description of Proposal vided by the RIC or REIT provisions of the In general, an individual who makes the The proposal allows the nonrefundable per- Code. election (1) designates all or a portion of his sonal credits to offset the individual’s reg- The provision does not otherwise change or her taxable income attributable to any ular tax in full for taxable years beginning in the tax treatment of the distribution to the farming business from the current year as 1998 (as opposed to only the amount by which parent corporation or to the RIC or REIT. ‘‘elected farm income;’’ 7 (2) allocates one- the regular tax exceeds the tentative min- Thus, for example, the liquidating corpora- third of the elected farm income to each of imum tax, as under present law). tion will not recognize gain (if any) on the the three prior taxable years; and (3) deter- The provision of present law that reduces liquidating distribution and the recipient mines the current year section 1 tax liability the additional child credit by the amount of corporation will hold the assets at a carry- by combining (a) his or her current year sec- an individual’s AMT will not apply for tax- over basis, even where the amount received tion 1 tax liability excluding the elected able years beginning in 1998. is treated as a dividend. farm income allocated to the three prior taxable years, plus (b) the increases in the sec- Effective Date Effective Date tion 1 tax liability for each of the three prior The proposal is effective for taxable years The provision is effective for distributions taxable years caused by including one-third beginning in 1998. on or after May 22, 1998, regardless of when of the elected farm income in each such year. TITLE III. REVENUE OFFSET PROVISION the plan of liquidation was adopted. Any allocation of elected farm income pursu- A. TREATMENT OF CERTAIN DEDUCTIBLE LIQUI- ant to the election applies for purposes of No inference is intended regarding the DATING DISTRIBUTIONS OF REGULATED IN- any election in a subsequent taxable year. treatment of such transactions under VESTMENT COMPANIES AND REAL ESTATE IN- The provision does not apply for employ- present law. VESTMENT TRUSTS (SEC. 301 OF THE BILL AND ment tax purposes, or to an estate or a trust. SECS. 332 AND 334 OF THE CODE) TITLE IV. TAX TECHNICAL CORRECTIONS The provision also does not apply for purposes of the alternative minimum tax. The Present Law Except as otherwise provided, the tech- provision is effective for taxable years begin- Regulated investment companies (‘‘RICs’’) nical corrections contained in the bill gen- ning after December 31, 1997, and before Jan- and real estate investment trusts (‘‘REITs’’) erally are effective as if included in the uary 1, 2001. are allowed a deduction for dividends paid to originally enacted related legislation.

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A. TECHNICAL CORRECTIONS TO THE 1998 ACT payable and allowable for which the net in- The proposal also corrects a cross ref- 1. Burden of proof (sec. 402(b) of the bill, sec. terest rate of zero would apply, and (3) on or erence. before December 31, 1999, the taxpayer asks 3001 of the 1998 Act, and sec. 7491(a)(2)(C) B. TECHNICAL CORRECTIONS TO THE 1997 ACT of the Code) the Secretary to apply the net zero rate. Description of Proposal 1. Treatment of interest on qualified education Present Law loans (sec. 403(a) of the bill, sec. 202 of the The proposal restores language originally The Treasury Secretary has the burden of 1997 Act, and secs. 221 and 163(h) of the included in the Senate amendment that proof in any court proceeding with respect to Code) clarifies that the applicability of the zero a factual issue if the taxpayer introduces net interest rate for periods on or before Present Law credible evidence with respect to any factual July 22, 1998 is subject to any applicable issue relevant to ascertaining the taxpayer’s Present law, as modified by the 1997 Act, statute of limitations not having expired tax liability, provided specified conditions provides that certain individuals who have with regard to either a tax underpayment or paid interest on qualified education loans are satisfied (sec. 7491). One of these condi- overpayment. tions if that corporations, trust, and partner- may claim an above-the-line deduction for ships must meet certain net worth limita- 4. Effective date for elimination of 18-month such interest expense, up to a maximum dol- tions. These net worth limitations do not holding period for capital gains (sec. 402(i) lar amount per year ($1,000 for taxable years apply to individuals or to estates. of the bill, sec. 5001 of the 1998 Act, and sec. beginning in 1998), subject to certain require- 1(h) of the Code) ments (sec. 221). The maximum deduction is Description of Proposal Present Law phased out ratably for individual taxpayers The proposal removes that net worth limi- The 1998 Act repealed the provision in the with modified AGI between $40,000 and $55,000 tation from certain revocable trusts for the 1997 Act providing a maximum 28-percent ($60,000 and $75,000 for joint returns). Present same period of time that the trust would rate for the long-term capital gain attrib- law also provides that in the case of a tax- have been treated as part of the estate had utable to property held more than one year payer other than a corporation, no deduction the trust made the election under section 645 but not more than 18 months. Instead, the is allowed for personal interest (sec. 163(h)). to be treated as part of the estate. 1998 Act treated this gain in the same man- For this purpose, personal interest means 2. Relief for innocent spouses (sec. 402(c) of the ner as gain from property held more than 18 any interest allowable as a deduction, other bill, sec. 3201 of the 1998 Act, and secs. months. The provision in the 1998 Act is ef- than certain types of interest listed in the 6015(e) and 7421(a) of the Code) fective for amounts properly taken into ac- statute. This proposal does not specifically Present Law count after December 31, 1997. For gains provide that otherwise deductible qualified taken into account by a pass-thru entity, education loan interest is not treated as per- A taxpayer who is no longer married to, is such as a partnership, S corporation, trust, sonal interest. separated from, or has been living apart for estate, RCI or REIT, the date that the entity Present law provides that a qualified edu- at least 12 months from the person with properly took the gain into account is the cation loan does not include any indebted- whom he or she originally joined in filing a appropriate date in applying this provision. ness owed to a person who is related (within joint Federal income tax return may elect to Thus, for example, amounts properly taken the meaning of sec. 267(b) or 707(b)) to the limit his or her liability for a deficiency into account by a pass-thru entity after July taxpayer (sec. 221(e)(1)). arising from such joint return to the amount 28, 1997, and before January 1, 1998, with re- of the deficiency that is attributable to Description of Proposal spect to property held more than one year items that are allocable to such electing but not more than 18 months which are in- The proposal clarifies that otherwise de- spouse. The election is limited to deficiency cluded in income on an individual’s 1998 re- ductible qualified education loan interest is situations and only affects the amount of the turn are taken into account in computing 28- not treated as nondeductible personal inter- deficiency for which the electing spouse is percent rate gain. est. liable. Thus, the election cannot be used to Description of Proposal The proposal also clarifies that, for pur- generate a refund, to direct a refund to one poses of section 221, modified AGI is deter- spouse or the other, or to allocate responsi- Under the proposal, in the case of a capital gain dividend made by a RIC or REIT after mined after application of section 135 (relat- bility for payment where a balance due is re- ing to income from certain U.S. savings ported on, but not paid with, a joint return. 1997, no amount will be taken into account in computing the net gain or loss in the 28- bonds) and section 137 (relating to adoption In addition to the election to limit the li- assistance programs). ability for deficiencies, a taxpayer may be percent rate gain category by reason of prop- The proposal also provides that a qualified eligible for innocent spouse relief. Innocent erty being held more than one year but not education loan does not include any indebt- spouse relief allows certain taxpayers who more than 18 months, other than amounts edness owed to any person by reason of a joined in the filing of a joint return to be re- taken into account by the RIC or REIT from loan under any qualified employer plan (as lieved of liability for an understatement of other pass-thru entities (other than in struc- defined in section 72(p)(4)) or under any con- tax that is attributable to items of the other tures, such as a ‘‘master-feeder structure’’, tract purchased under a qualified employer spouse to the extent that the taxpayer did in which the RIC invests a substantial por- plan (as described in sec. 72(p)(5)). not know or have reason to know of the un- tion of its assets in one or more partnerships derstatement. The Secretary is also author- holding portfolio securities and having the 2. Capital gain distributions of charitable re- ized to provide equitable relief in situations same taxable year as the RIC). A similar rule mainder trusts (secs. 402(i)(3) and 403(b) of where, taking into account all of the facts applies to amounts properly taken into ac- the bill, sec. 311 of the 1997 Act and sec. 5001 count by a RIC or REIT by reason of holding, and circumstances, it is inequitable to hold of the 1998 Act, and sec. 1(h) of the Code) directly or indirectly, an interest in another an individual responsible for all or part of RIC or REIT to which the rule in the pre- Present Law any unpaid tax or deficiency arising from a ceding sentence applies. Under present law, the income beneficiary joint return. Under certain circumstances, it For example, if a RIC sold stock held more of a charitable remainder trust (‘‘CRT’’) in- is possible that a refund could be obtained than one year but not more than 18 months cludes the trust’s capital gain in income under this authority. on November 15, 1997, for a gain, and makes when the gains are distributed to the bene- Description of Proposal a capital gain dividend in 1998, the gain is ficiary (sec. 664(b)(2)). Internal Revenue The proposal clarifies that the ability to not taken into account in computing 28-per- Service Notice 98–20 provides guidance with obtain a credit or refund of Federal income cent rate gain for purposes of determining respect to the categorization of long-term tax is limited to situations where the tax- the taxation of the 1998 dividend. (Thus, all gain distributions from a CRT under the cap- payer qualifies for innocent spouse relief or the netting and computations made by the ital gain rules enacted by the 1997 Act. Under where the Secretary exercises his authority RIC need to be redone with respect to all the Notice, long-term capital gains properly to provide equitable relief. post-1997 capital gain dividends, whether or taken into account by the trust before Janu- not dividends of 28-percent rate gain.) If, 3. Interest netting (sec. 402(d) of the bill and sec. ary 1, 1997, are treated as falling in the 20- however, the gain was taken into account by 3301(c)(2) of the 1998 Act) percent group of gain (i.e., gain not in the 28- a RIC by reason of holding an interest in a percent rate gain or unrecaptured sec. 1250 Present Law calendar year 1997 partnership which itself gain). Long-term capital gains properly Fro calendar quarters beginning after July sold the stock, the gain will not be re- taken into account by the trust after Decem- 22, 1998, a net interest rate of zero applies characterized by reason of this proposal (un- ber 31, 1996, and before May 7, 1997, are in- where interest is payable and allowable on less the RIC’s investment in the partnership cluded in 28-percent rate gain. Long-term equivalent amounts of overpayment and un- satisfies the exception for master-feeder capital gains properly taken into account by derpayment of any tax imposed by the Inter- structures). If the gain was taken into ac- the trust after May 6, 1997, are treated as net Revenue Code. In addition, the net inter- count by a RIC by reason of holding an inter- falling into the category which would apply est rate of zero applies to periods on or be- est in a REIT and the gain was excluded if the trust itself were subject to tax. fore July 22, 1998, providing (1) the statute of from 28-percent rate gain by reason of the limitations has not expired with respect to application of this proposal to the REIT, the Description of Proposal either the underpayment or overpayment, (2) gain will be excluded from 28-percent rate The proposal provides that, in the case of the taxpayer identifies the periods of under- gain in determining the tax of the RIC share- a capital gain distribution by a CRT after payment and overpayment where interest is holders. December 31, 1997, with respect to amounts

VerDate Mar 15 2010 00:42 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00063 Fmt 4624 Sfmt 0634 E:\1998SENATE\S10OC8.REC S10OC8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S12334 CONGRESSIONAL RECORD — SENATE October 10, 1998 properly taken into account by the trust taxpayer can challenge a redetermination of Treasury extends the filing date of an indi- during 1997, amounts will not be included in value by the IRS prior to issuance of a final vidual tax return for 1997 for individuals liv- the 28-percent rate gain category solely by notice. In the event the taxpayer and the ing in an area that has been declared a dis- reason of being properly taken into account IRS cannot agree on the value of a gift, the aster area by the President during 1997, no by the trust before May 7, 1997, or by reason 1997 Act provided the U.S. Tax Court with ju- interest shall be charged as a result of the of the property being held not more than 18 risdiction to issue a declaratory judgment on failure of an individual taxpayer to file an months. Thus, for example, gain on the sale the value of a gift (section 7477). A taxpayer individual tax return, or pay the taxes shown of stock by a CRT on February 1, 1997, will who is mailed a final notice may challenge on such return, during the extension. not be taken into account in determining 28- the redetermined value of the gift (as con- The Internal Revenue Service Restruc- percent rate gain where the gain is distrib- tained in the final notice) by filing a motion turing and Reform Act of 1998 (‘‘1998 Act’’) uted after 1997.8 for a declaratory judgment with the U.S. Tax contains a similar rule applicable to all tax- Effective Date Court. The motion must be filed on or before payers for tax years beginning after 1997 for 90 days from the date that the final notice disasters declared after 1997. The status of The proposal applies to taxable years be- was mailed. The statute of limitations is disasters declared in 1998 but that relate to ginning after December 31, 1997. tolled during the pendency of the Tax Court the 1997 tax year is unclear. 3. Gifts may not be revalued for estate tax pur- proceeding. Description of Proposal poses after expiration of statute of limita- Revaluation of gifts for gift tax purposes.— The proposal amends the 1997 Act rule so tions (sec. 403(c) of the bill, sec. 504 of the Similarly, under a rule applicable to the that it is available for disasters declared in 1997 Act, and sec. 2001(f)(2) of the Code) computation of the gift tax (sec. 2504(c)), the 1997 or in 1998 with respect to the 1997 tax value of gifts made in prior years is its value Present Law year. as finally determined if the period of limita- Basic structure of Federal estate and gift 6. Treatment of certain corporate distributions taxes.—The Federal estate and gift taxes are tions for assessment of gift tax on the prior gifts has expired. (sec. 403(f) of the bill, sec. 1012 of the 1997 unified so that a single progressive rate Act, and secs. 351(c) and 368(a)(2)(H) of the Description of Proposal schedule is applied to an individual’s cumu- Code) lative gifts and bequests. The tax on gifts The bill clarifies the rules relating to re- Present Law made in a particular year is computed by de- valuations of prior transfers for computation termining the tax on the sum of the taxable of the estate or gift tax to provide that the The 1997 Act (sec. 1012(a)) requires a dis- gifts made in that year and in all prior years value of a prior transfer cannot be redeter- tributing corporation to recognize corporate and then subtracting the tax on the prior mined after the period of limitations if the level gain on the distribution of stock of a years taxable gifts and the unified credit. transfer was disclosed in a statement at- controlled corporation under section 355 of Similarly, the estate tax is computed by de- tached to the gift tax return, as well as on a the Code if, pursuant to a plan or series of termining the tax on the sum of the taxable gift tax return, in a manner to adequately related transactions, one or more persons ac- estate and prior taxable gifts and then sub- apprise the Treasury Secretary of the nature quire a 50-percent or greater interest (de- tracting the tax on taxable gifts, the unified the transfer, even if there was no gift tax im- fined as 50 percent or more of the voting credit, and certain other credits. posed on that transfer. power or value of the stock) of either the dis- This structure raises two different, but re- 4. Coordinate Vaccine Injury Compensation tributing or controlled corporation (Code lated, issues: (1) what is the period beyond Trust Fund expenditure purposes with list sec. 355(e)). Certain transactions are ex- which additional gift taxes cannot be as- of taxable vaccines (sec. 403(d) of the bill, cepted from the definition of acquisition for sessed or collected—generically referred to sec. 904 of the 1997 Act, and sec. 9510(c) of this purpose. Under the technical corrections as the ‘‘period of limitations’’—and (2) what the Code) included in the Internal Revenue Service Re- structuring and Reform Act of 1998, in the is the period beyond which the amount of Present Law prior transfers cannot be revalued for the case of acquisitions under section A manufacturer’s excise tax is imposed on 355(e)(3)(A)(iv), the acquisition of stock in purpose of determining the amount of tax on certain vaccines routinely recommended for subsequent transfers. the distributing corporation or any con- administration to children (sec. 4131). The trolled corporation is disregarded to the ex- Gift and estate tax period of limitations.— tax is imposed at a rate of $0.75 per dose on Section 6501(a) provides the general rule that tent that the percentage of stock owned di- any listed vaccine component. Taxable vac- rectly or indirectly in such corporation by any tax (including gift and estate tax) must cine components are vaccines against diph- be assessed, or a proceeding begun in a court each person owning stock in such corpora- theria, tetanus, pertussis, measles, mumps, tion immediately before the acquisition does for the collection of such tax without assess- rubella, polio, HIB (haemophilus influenza ment, within three years after the return is not decrease.9 type B), hepatitis B, and varicella (chicken In the case of a 50-percent or more acquisi- filed by the taxpayer. Under section pox). Tax was imposed on vaccines against 6501(e)(2), the period for assessments of gift tion of either the distributing corporation or diphtheria, tetanus, pertussis, measles, the controlled corporation, the amount of or estate tax is increased to six years where mumps, rubella, and polio by the Omnibus there is more than a 25 percent omission in gain recognized is the amount that the dis- Budget Reconciliation Act of 1987. Tax was tributing corporation would have recognized the amount of the total gifts or gross estate imposed on vaccines against HIB, hepatitis disclosed on the gift or estate tax return. had the stock of the controlled corporation B, and varicella by the 1997 Act. been sold for fair market value on the date of Section 6501(c)(9) provides an exception to Amounts equal to net revenues from this these rules under which gift tax may be as- the distribution. No adjustment to the basis excise tax are deposited in the Vaccine In- of the stock or assets of either corporation is sessed, or a proceeding in a court for collec- jury Compensation Trust Fund (‘‘Vaccine tion of gift tax may be begun, at any time allowed by reason of the recognition of the Trust Fund’’) to finance compensation gain.10 unless the gift is disclosed on a gift tax re- awards under the Federal Vaccine Injury turn or a statement attached to a gift tax re- The 1997 Act (as amended by the technical Compensation Program for individuals who corrections contained in the Internal Rev- turn. suffer certain injuries following administra- Revaluation of gifts for estate tax purposes.— enue Service Restructuring and Reform Act tion of the taxable vaccines. Present law proof 1998) also modified certain rules for deter- The value of a gift is its value as finally de- vides that payments from the Vaccine Trust termined under the rules for purposes of demining control immediately after a distribu- Fund may be made only for vaccines eligible tion in the case of certain divisive trans- termining the applicable estate tax bracket under the program as of December 22, 1987 and available unified credit. The value of a actions in which a controlled corporation is (sec. 9510(c)(1)). Thus, payments may not be distributed and the transaction meets the re- gift is finally determined if (1) the value of made for injuries related to the HIB, hepa- the gift is shown on a gift tax return for that quirements of section 355. In such cases, titis B or varicella vaccines. under section 351 and modified section gift and that value is not contested by the Description of Proposal Treasury Secretary before the expiration of 368(a)(2)(H) with respect to reorganizations The proposal provides that payments are the period of limitations on assessment of under section 368(a)(1)(D), the fact that the permitted from the Vaccine Trust Fund for gift tax even where the value of the gift as shareholders of the distributing corporation injuries related to the administration of the shown on the return does not result in any dispose of part or all of the distributed stock HIB, hepatitis B, and varicella vaccines. The gift tax being owned (e.g., through use of the shall not be taken into account. proposal also clarifies that expenditures unified credit), (2) the value is specified by The effective date (Act section 1012(d)(1)) from the Vaccine Trust Fund may occur only the Treasury Secretary pursuant to a final states that the relevant provisions of the as provided in the Code and makes con- notice of redetermination of value (a ‘‘final 1997 Act apply to distributions after April 16, forming amendments. notice’’) within the period of limitations ap- 1997, pursuant to a plan (or series of related plicable to the gift for gift tax purposes (gen- 5. Abatement of interest by reason of Presi- transactions) which involves an acquisition erally, three years) and the taxpayer does dentially declared disaster (sec. 403(e) of the occurring after such date (unless certain not timely contest that value, or (3) the bill, sec. 915 of the 1997 Act, and sec. 6404(h) transition provisions apply). value is determined by a court or pursuant of of the Code) Description of Proposal a settlement agreement between the tax- Present Law The proposal clarifies the ‘‘control imme- payer and the Treasury Secretary under an The Taxpayer Relief Act of 1997 (‘‘1997 diately after’’ requirement of section 351(c) administrative appeals process whereby a Act’’) provided that, if the Secretary of the and section 368(a)(2)(H) in the case of certain

VerDate Mar 15 2010 00:42 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00064 Fmt 4624 Sfmt 0634 E:\1998SENATE\S10OC8.REC S10OC8 mmaher on DSKCGSP4G1 with SOCIALSECURITY October 10, 1998 CONGRESSIONAL RECORD — SENATE S12335 divisive transactions in which a corporation small business. Other special rules apply to may have an unintended impact on Treasury contributes assets to a controlled corpora- real estate investment trusts (REITs) (no contracts for the provision of services unre- tion and then distributes the stock of the carrybacks), specified liability losses (10- lated to the payment of income taxes by controlled corporation in a transaction that year carryback), and excess interest losses commercially acceptable means. meets the requirements of section 355 (or so (no carrybacks). Description of Proposal much of section 356 as related to section 355). Description of Proposal The proposal clarifies that the prohibition In such cases, not only the fact that the The proposal coordinates the use of eligi- on paying any fees or providing any other shareholders of the distributing corporation ble losses with the general rule for NOLs in consideration applies to the use of credit, dispose of part or all of the distributed the same manner as a loss arising from a debit, or charge cards for the payment of in- stock, but also the fact that the corporation specified liability loss. Thus, an eligible loss come taxes. whose stock was distributed issues addi- for any year is treated as a separate net op- tional stock, shall not be taken into ac- C. TECHNICAL CORRECTIONS TO THE 1984 ACT erating loss and is taken into account after count. 1. Casualty loss deduction (sec. 404 of the bill, the remaining portion of the net operating sec. 711(c) of the 1984 Act, and secs. 7. Treatment of affiliated group including for- loss for the taxable year. merly tax-exempt organization (sec. 403(g) of 172(d)(4), 67(b)(3), 68(c)(3), and 873(b) of the 9. Determination of unborrowed policy cash the bill and sec. 1042 of the 1997 Act) Code) value under COLI pro rata interest dis- Present Law Present Law allowance rules (sec. 403(i) of the bill, sec. Present law provides that an organization 1084 of the 1997 Act, and sec. 246(f) of the The Tax Reform Act of 1984 (‘‘1984 Act’’) described in sections 501(c) (3) or (4) of the Code) deleted casualty and theft losses from property connected with a nonbusiness trans- Code is exempt from tax only if no substan- Present Law tial part of its activities consists of pro- action entered into for profit from the list of viding commercial-type insurance. When In the case of a taxpayer other than a nat- losses set forth in section 165(c)(3). This this rule was enacted in 1986, certain treat- ural person, no deduction is allowed for the amendment was made in order to provide ment applied to Blue Cross and Blue Shield portion of the taxpayer’s interest expense that these losses were deductible in full and organizations providing health insurance that is allocable to unborrowed policy cash not subject to the $100 per casualty limita- that were submitted to this rule and that surrender values with respect to any life in- tion or the 10-percent adjusted gross income met certain requirements. Treasury regula- surance policy or annuity or endowment con- floor applicable to personal casualty losses. tions were promulgated providing rules for tract issued after June 8, 1997. Interest ex- However, the amendment inadvertently filing consolidated returns for affiliated pense is allocable to unborrowed policy cash eliminated the deduction for these losses groups including such organizations (Treas. values based on the ratio of (1) the tax- from the computation of the net operating Reg. sec. 1.1502–75(d)(5)). payer’s average unborrowed policy cash val- loss. Also, the Tax Reform Act of 1986 pro- The 1997 act repealed the grandfather rules ues of life insurance policies and annuity and vided that casualty losses described in sec- provided in 1986 (permitting the retention of endowment contracts, issued after June 8, tion 165(c)(3) are not miscellaneous itemized tax-exempt status) that were applicable to 1997, to (2) the sum of (a) in the case of assets deductions subject to the 2-percent adjusted that portion of the business of the Teachers that are life insurance policies or annuity or gross income floor, and the Revenue Rec- Insurance Annuity Association and College endowment contracts, the average onciliation Act of 1990 provided that these Retirement Equities Fund which is attrib- unborrowed policy cash values and (b) in the losses are not treated as itemized deductions utable to pension business and to the portion case of other assets the average adjusted in computing the overall limitation on of the business of Mutual of America which bases for all such other assets of the tax- itemized deductions. The losses of non- is attributable to pension business. The 1997 payer. The unborrowed policy cash values resident aliens are limited to deductions de- Act did not specifically provide rules for fil- means the cash surrender value of the policy scribed in section 165(c)(3). Because of the ing consolidated returns for affiliated groups or contract determined without regard to change made by the 1984 Act, the reference including such organizations. any surrender charge, reduced by the to section 165(c)(3) does not include casualty Present law with respect to consolidated amount of any loan with respect to the pol- and theft losses from nonbusiness trans- returns provides for an election to treat a icy or contract. The cash surrender value is Actions entered into for profit. life insurance company as an includable cor- to be determined without regard to any Description of Proposal other contractual or noncontractual ar- poration, and also provides that a life insur- The proposal provides that all deductions ance company may not be treated as an in- rangement that artificially depresses the unborrowed policy cash value of a contract. for nonbusiness casualty and theft losses are cludable corporation for the 5 taxable years taken into account in computing the net op- immediately preceding the taxable year for Description of Proposal erating loss. Also, these deductions are not which the consolidated return is filed (sec. The proposal clarifies the meaning of treated as miscellaneous itemized deductions 1504(c)(2)). Present law also provides that a ‘‘unborrowed policy cash value’’ under sec- subject to the 2-percent adjusted gross incorporation that is exempt from taxation tion 264(f)(3), with respect to any life insur- come floor, or as itemized deductions subject under Code section 501 is not an includable ance, annuity or endowment contract. The to the overall limitation on itemized deduc- corporation (sec. 1504(b)(1)). technical correction clarifies that under sections, and are allowed to nonresident aliens. Description of Proposal tion 264(f)(3), if the cash surrender value (de- Effective Dates The proposal provides rules for filing con- termined without regard to any surrender The proposal relating to the net operating solidated returns for affiliated groups includ- charges) with respect to any policy or con- loss and the deduction for nonresident aliens ing any organization with respect to which tract does not reasonably approximate its applies to taxable years beginning after De- the grandfather rule under Code section actual value, then the amount taken into ac- cember 31, 1983. 501(m) was repealed by section 1042 of the count for this purpose is the greater of (1) the amount of the insurance company’s li- The proposal relating to miscellaneous 1997 Act. The proposal provides that rules itemized deduction applies taxable years be- similar to the rules of Treasury Regulation ability with respect to the policy or contract, as determined for purposes of he an- ginning after December 31, 1986. section 1.1502–75(d)(5) apply in the case of The proposal relating to the overall limita- nual statement approved by the National As- such an organization. Thus, an affiliated tion on itemized deductions applies to tax- sociation of Insurance Commissioners, (2) group including such an organization may able years beginning after December 31, 1990. make the election described in section the amount of the insurance company’s re- 1504(c)(2) (relating to a 5-year period) with- serve with respect to the policy or contract D. DISCLOSURE OF TAX RETURN INFORMATION TO out regard to whether the organization was for purposes of such annual statement; or THE DEPARTMENT OF AGRICULTURE (SEC. previously exempt from tax under Code sec- such other amount as is determined by the 405(A) OF THE BILL AND SEC. 6103(J) OF THE tion 501. Treasury Secretary. No inference is intended CODE) 8. Treatment of net operating losses arising from that such amounts may not be taken into ac- Present Law certain eligible losses (sec. 403(h) of the bill, count in determining the cash surrender Tax return information generally may not sec. 1082 of the 1997 Act, and sec. value of a policy or contract in such cir- be disclosed, except as specifically provided 172(b)(1)(F) of the Code) cumstances for purposes of any other provi- by statute. Disclosure is permitted to the sion of the Code. Present Law Bureau of the Census for specified purposes, 10. Payment of taxes by commercially acceptable which included the responsibility of struc- The 1997 Act changed the general net oper- means (sec. 403(k) of the bill, sec. 1205 of the turing, conducting, and preparing the census ating loss (‘‘NOL’’) carryback period of a 1997 Act, and sec. 6311 (d)(2) of the Code) of agriculture (sec. 6103(j)(1)). The Census of taxpayer from three years to two years. The Agriculture Act of 1997 (P.L. 105–113) trans- three-year carryback period was retained in Present Law ferred this responsibility from the Bureau of the case of an NOL attributable to an eligi- The Code generally permits the payment of the Census to the Department of Agri- ble loss. An eligible loss is defined as (1) a taxes by commercially acceptable means culture. casualty or theft loss of an individual tax- (such as credit cards) (sec. 6311(d)). The payer, or (2) an NOL attributable to a Presi- Treasury Secretary may not pay any fee or Description of Proposal dentially declared disaster area by a tax- provide any other consideration in connec- The proposal permits the continuation of payer engaged in a farming business or a tion with this provision. This fee prohibition disclosure of tax return information for the

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purpose of structuring, conducting, and pre- G. PERFECTING AMENDMENTS RELATED TO ceipts for any five years selected by the taxpayer paring the census of agriculture by author- WITHHOLDING FROM SOCIAL SECURITY BENE- from its fifth through tenth taxable years after 1993 (sec. 41(c)(3)(B)). izing the Department of Agriculture to re- FITS AND OTHER FEDERAL PAYMENTS (SEC. 406 3 Under a special rule, 75 percent of amounts paid ceive this information. OF THE BILL AND SECS. 201 AND 207 OF THE SO- to a research consortium for qualified research is Effective Date CIAL SECURITY ACT) treated as qualified research expenses eligible for Present Law the research credit (rather than 65 percent under the The proposal is effective on the date of en- The Uruguay Round Agreements Act (P.L. general rule under sec. 41(b)(3) governing contract actment of this technical correction. research expenses) if (1) such research consortium is 103–465) contained a provision requiring that a tax-exempt organization that is described in sec- E. TECHNICAL CORRECTIONS TO THE TRANSPOR- U.S. taxpayers who receive specified Federal tion 501(c)(3) (other than a private foundation) or TATION EQUITY ACT FOR THE 21ST CENTURY payments (including Social Security bene- section 501(c)(6) and is organized and operated pri- (SEC. 405(B) OF THE BILL, SEC. 9004 OF THE ACT, fits) be given the option of requesting that marily to conduct scientific research, and (2) such AND SEC. 9503(F) OF THE CODE) the Federal agency making the payments qualified research is conducted by the consortium Present Law withhold Federal income taxes from the pay- on behalf of the taxpayer and one or more persons ments. not related to the taxpayer. The Transportation Equity Act for the 21st 4 The amount of the deduction allowable for a tax- Century (‘‘Transportation Equity Act’’) (P.L. Description of Proposal able year with respect to a charitable contribution 105–178) extended the Highway Trust Fund Due to a drafting oversight, the Uruguay may be reduced depending on the type of property and accompanying highway excise taxes. The Round Agreements Act included only the contributed, the type of charitable organization to which the property is contributed, and the income of Transportation Equity Act also changed the necessary changes to the Internal Revenue the taxpayer (secs. 170(b) and 170(e)). budgetary treatment of Highway Trust Fund Code (‘‘Code’’) and failed to make certain 5 The President canceled these exceptions in 1997 expenditures, including repeal of a provision conforming changes to the Social Security pursuant to the Line Item Veto Act. On June 25, that balances maintained in the Highway Act (specifically a section that prohibits as- 1998, the U.S. Supreme Court held that the cancella- Trust Fund pending expenditure earn inter- signments of benefits). The proposal amends tion procedures set forth in the Line Item Veto Act est from the General Fund of the Treasury. the Social Security Act anti-assignment sec- are unconstitutional Clinton v. City of New York, 118 tion to allow the Code provisions to be im- S. Ct. 2091 (June 25, 1998). Description of Proposal 6 This rule applies to fiscal years after 1996. For fis- plemented. The proposal also allocates fund- The proposal clarifies that the Secretary of cal year 1996, this payment was to be made not later ing for the Social Security Administration than 30 days after the production flexibility con- the Treasury is not required to invest High- to administer the tax-withholding provi- tract was entered into. way Trust Fund balances in interest-bearing sions. 7 The amount of elected farm income of a taxpayer obligations (because any interest paid to the Effective Date for a taxable year may not exceed the taxable in- Trust Fund by the General Fund would be come attributable to any farming business for the immediately returned to the General Fund). The proposal applies to benefits paid on or year. after the first day of the second month be- 8 The bill contains a similar amendment to section F. REPEAL OF PROVISIONS RELATING TO DIS- ginning after the month of enactment. 1(h)(13), as amended by section 5001 of the 1998 Act, TRICT OF COLUMBIA JUDICIAL RETIREMENT to provide that, for purposes of taxing the recipient FOOTNOTES PROGRAM (SEC. 405(C) OF THE BILL) of a distribution made after 1997 by a CRT, amounts 1 This document may be cited as follows: Joint will not be taken into account in computing 28-per- Present Law Committee on Taxation, Description of Provisions cent rate gain by reason of being properly taken Section 804 of the Treasury and General in S. 2622, the Tax Relief Extension Act of 1998 (JCX– into account before May 7, 1997, or by reason of the Government Appropriations Act, 1999, makes 70–98), October 10, 1998. (References in this document property being held for not more than 18 months. to the ‘‘1997 Act’’ refer to the Taxpayer Relief Act of Thus, no amount distributed by a CRT after 1997 will certain technical and clarifying amendments 1997.) be treated as in the 28-percent category (other than to the Judicial Retirement Program of the 2 A special rule is designed to gradually recompute by reason of the disposition of collectibles or small District of Columbia. Included in these a start-up firm’s fixed-base percentage based on its business stock). amendments were certain amendments that actual research experience. Under this special rule, 9 This exception (as certain other exceptions) does applied for purposes of the Internal Revenue a start-up firm will be assigned a fixed-base percent- not apply if the stock held before the acquisition Code of 1986. age of 3 percent for each of its first five taxable was acquired pursuant to a plan (or series of related years after 1993 in which it incurs qualified research transactions) to acquire a 50-percent or greater in- Description of Proposal expenditures. In the event that the research credit is terest in the distributing or a controlled corpora- Section 804 of the Treasury and General extended beyond the scheduled expiration date, a tion. start-up firm’s fix-based percentage for its sixth 10 The 1997 Act does not limit the otherwise appli- Government Appropriations Act, 1999, is re- through tenth taxable years after 1993 in which it in- cable Treasury regulatory authority under section pealed. curs qualified research expenditures will be a 336(e) of the Code. Nor does it limit the otherwise Effective Date phased-in ratio based on its actual research experi- applicable provisions of section 1367 with respect to ence. For all subsequent taxable years, the tax- the effect on shareholder stock basis of gain recog- The proposal is effective on the date of en- payer’s fixed-based percentage will be its actual nized by an S corporation under this provision. actment. ratio of qualified research expenditures to gross re- ESTIMATED REVENUE EFFECTS OF S. 2626, THE ‘‘TAX RELIEF EXTENSION RELIEF ACT OF 1998’’ [Fiscal years 1999–2007, in millions of dollars]

Provision Effective 1999 2000 2001 2002 2003 2004 2005 2006 2007 1999–02 2003–07 1999–07

I. EXTENSION OF EXPIRING PROVISIONS: Subtitle A. Expiring Tax Provisions: A. Extend the R&E Credit (through 6/30/99) ...... 7/1/98 ...... ¥1,126 ¥505 ¥258 ¥184 ¥94 ¥20 ...... 2,073 ¥114 ¥2,187 B. Extend the Work Opportunity Tax Credit (through 6/30/99) ...... wpoifibwa 6/30/98 ...... ¥191 ¥140 ¥73 ¥29 ¥10 ¥2 ...... ¥434 ¥11 ¥445 C. Extend the Welfare-to-Work Tax Credit (through 6/30/99) ...... wpoifibwa 4/30/99 ...... ¥4 ¥10 ¥7 ¥3 ¥1 ...... ¥24 ¥1 ¥25 D. Extend Contributions of Appreciated Stock to Private Foundations 7/1/98 ...... ¥63 ¥13 ¥4 ...... 80 ...... ¥80 (through 6/30/99). E. 1-Year Extension of Exemption from Subpart F for Active Financing tybi 1999 ...... ¥80 ¥180 ...... ¥260 ...... ¥260 Income. F. Extension of Placed-in-Service Date For Certain Nonconventional DOE ...... ¥7 ¥26 ¥27 ¥38 ¥39 ¥40 ¥41 ¥42 ¥43 ¥109 ¥207 ¥315 Fuels Facilities (though 6/30/99). G. Extension of Tax Information Reporting for Income Contingent Stu- (2) ...... NEGLIGIBLE BUDGET EFFECT dent Loan Program (through 9/30/04) 1. Subtotal of Extension of Expiring Tax Provisions ...... ¥1,471 ¥874 ¥379 ¥254 ¥144 ¥62 ¥41 ¥42 ¥43 ¥2,980 ¥333 ¥3,312

SUBTITLE B. EXPIRING TRADE PROVISIONS: A. Extend the Generalized System of Preferences (through 12/31/99/) 1 dpo/a 7/1/98...... ¥393 ¥84 ...... ¥477 ...... ¥477 B. Extend Trade Adjustment Assistance (through 6/30/99)1 ...... DOE ...... ¥34 ¥15 ¥1 ...... ¥50 ...... ¥50 Subtotal of Extension of Expiring Trade Provisions ...... ¥427 ¥99 ¥1 ¥ ¥ ¥ ¥ ¥ ¥ ¥527 ¥ ¥527

II. OTHER TAX PROVISIONS A. Increase Deduction for Health Insurance Expenses of Self-Employed tyba 12/31/00 ...... ¥163 ¥702 ¥959 ¥637 ¥680 ¥602 ¥257 ¥864 ¥3,134 ¥3,998 Individuals—70% in 2001 and 100% in 2002 and thereafter. B. Production Flexibility Contract Payments to Farmers Not Included in tyea 12/31/95 ...... NEGLIGIBLE BUDGET EFFECT Income Prior to Receipt. C. Permanent Extension of Income Averaging for Farmers ...... tyba 12/31/00 ...... ¥2 ¥21 ¥22 ¥22 ¥23 ¥24 ¥24 ¥23 ¥115 ¥138 D. Treatment of Nonrefundable Personal Credits (child credit, adoption, tybi 1998 ...... ¥474 ...... ¥474 ...... ¥474 credit, HOPE and Lifetime Learning credits, etc.) Under the Alter- native Individual Minimum Tax (for 1998 only). Subtotal of Other Tax Provisions ...... ¥474 ...... ¥165 ¥723 ¥981 ¥659 ¥703 ¥626 ¥281 ¥1,361 ¥3,249 ¥4,610

REVENUE OFFSET PROVISION A. Change the Treatment of Certain Deductible Liquidating Distribu- dma 5/21/98...... 2,425 1,109 723 640 672 705 741 778 817 4,897 3,713 8,610 tions of RICs and REITs.

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Provision Effective 1999 2000 2001 2002 2003 2004 2005 2006 2007 1999–02 2003–07 1999–07

Subtotal of Revenue Offset Provision ...... 2,425 1,109 723 640 672 705 741 778 817 4,897 3,713 8,610 V. TAX TECHNICAL CORRECTIONS PROVISIONS ...... NO REVENUE EFFECT Net total ...... 53 136 178 ¥337 ¥453 ¥16 ¥3 110 493 29 131 161 1 Estimate provided by the Congressional Budget Office. 2 Effective for requests made after the date of enactment and before 10/1/03. NOTES: Details may not add to totals due to rounding. Legend for ‘‘Effective’’ column: dma = distributions made after; DOE = Date of enactment; dpo/a = duties paid on or after; tyba = taxable years beginning after; tybi = taxable years beginning in; tyea = taxable years ending after; wpoifibwa = wages paid or incurred for individuals beginning work after. Prepared by Joint Committee on Taxation.

Mr. MOYNIHAN. Mr. President, I am ∑ Mr. THOMPSON. Mr. President, How can we improve management to pleased to cosponsor, along with our today I am pleased to introduce the maximize productivity, effectiveness esteemed Chairman, Senator ROTH, a Government for the 21st Century Act of and accountability? Senate Finance Committee bill to ex- 1998, a bill to establish a commission to What criteria should we use in deter- tend a package of expired tax provi- bring the structure of our government mining whether a federal activity sions. Unfortunately, dealing with this in line with the needs of our Nation in should be privatized? group of expired tax items has become the next century. This bipartisan legis- Which departments or agencies a routine annual event for the Com- lation is the result of work over several should be eliminated because their mittee and for the Congress. This bill months between myself and Senators functions are obsolete, redundant, or extends universally popular items such GLENN, BROWNBACK, LIEBERMAN, ROTH, better performed by state and local as the credit for increasing research ac- and STEVENS. It has been carefully governments or the private sector? tivities, the Work Opportunity Credit, crafted to address not just what our We all want a federal government and the deduction for gifts of appre- government should look like, but the that is as innovative and responsive as ciated stock to private foundations more fundamental question of what it the government we envision. Our chal- through June of next year. It is my should do. lenge is to determine how to get there. hope that 1999 will be the year that the We all know the old adage, ‘‘form fol- We must start by asking ourselves entire group of ‘‘extenders’’ are finally lows function’’—but in the case of our what the essential functions of govern- made permanent. government, form too often impedes ment will be in the next century, so we We thank Senator ROTH for ensuring function. The federal infrastructure may tailor the scope and structure of that the Finance Committee is heard should enable it to respond to national the executive branch accordingly. on this matter. Our action is a re- needs and the needs of individual citi- Some activities now performed by the minder that the United States Con- federal government may require more gress does not act, on tax bills or any zens quickly, efficiently, and successfully—but years of outmoded bureauc- resources; others will surely require other measures, as a unicameral legis- less. The Commission on Government lature. Indeed, this Finance committee racies, procedures and red tape have impeded the kind of responsible service Restructuring and Reform will give us measure improves in several ways on a blueprint for designing a federal gov- the bill passed by the House Ways and our citizens deserve and expect. The ernment to meet our Nation’s needs Means Committee yesterday: government we have today was de- First, we extend the Trade Assist- signed for a world which has long since now and in the future. I am pleased that Senators LIEBER- ance Program from October 1, 1998 passed into history, a world in which MAN, BROWNBACK, ROTH, and STEVENS through June 30, 1999. This is an impor- personal computers did not exist, two- are joining me in introducing this bill tant program established in the Trade income families were the exception and Expansion Act of 1962 that provides no one had ever heard of a ‘‘sport util- today, and I thank them for the time training and income support for work- ity vehicle’’. In short, it is time to and staff they have devoted to the ef- ers adversely affected by import com- modernize the federal government, and fort. I look forward to working with petition. It is a commitment we have there is no more appropriate time to do them on this important legislation. made to workers, and it ought to be it than on the eve of the next century. I ask unanimous consent that the kept. It seems to me that the federal gov- Government for the 21st Century Act, Second, the bill includes a provision ernment is doing too many things to do along with the brief summary and sec- that prevents the tax benefit of non- them all well. I believe we must re- tion-by-section analysis, be printed in refundable personal credits such as the evaluate the functions of government the RECORD. There being no objection, the mate- $500 per child credit and the adoption to improve government service where rial was ordered to be printed in the credit from being eroded by the Alter- it is needed, redirect resources where it RECORD native Minimum Tax. This was to have is necessary, and get the federal gov- , as follows: been included as part of the Taxpayer ernment out of activities in which it S. 2623 Relief Act of 1997, but was dropped for does not belong. Our Founding Fathers Be it enacted by the Senate and House of Rep- some unknown reason as part of the envisioned a government of defined and resentatives of the United States of America in Congress assembled, final compromise. Without the ‘‘fix’’ limited powers. I can imagine their dis- included in this bill, we will trap many SECTION 1. SHORT TITLE AND PURPOSE. may if they knew the size and scope of (a) SHORT TITLE.—This Act may be cited as unsuspecting taxpayers who sit down the federal government today. We need to prepare their 1998 Federal income the ‘‘Government for the 21st Century Act of to return to the limited government 1998’’. tax returns next spring. that the Founders intended, and the (b) PURPOSE.— I applaud the work of the chairman Commission established in the legisla- (1) IN GENERAL.—The purpose of this Act is and the committee in moving quickly tion we are introducing today is a to reduce the cost and increase the effective- to agree on this bill and, for the great- major step in that direction. ness of the Federal Government by reorga- er good, deferring action on a number nizing departments and agencies, consoli- of very important narrower items until The Government Restructuring and dating redundant activities, streamlining op- next year. Reform Commission established by this erations, and decentralizing service delivery legislation would take a hard look at in a manner that promotes economy, effi- By Mr. THOMPSON (for himself, federal departments, agencies and pro- ciency, and accountability in Government Mr. LIEBERMAN, Mr. BROWN- grams and ask— programs. This Act is intended to result in a BACK, Mr. ROTH, and Mr. STE- Can and should we consolidate these Federal Government that— (A) utilizes a smaller and more effective VENS): agencies and programs to improve the implementation of their statutory mis- workforce; S. 2623. A bill to increase the effi- (B) motivates its workforce by providing a ciency and effectiveness of the Federal sions, eliminate activities not essential better organizational environment; and Government, and for other purposes; to to their statutory missions, and reduce (C) ensures greater access and account- the Committee on Governmental Af- duplication of activities while increas- ability to the public in policy formulation fairs. ing accountability for performance? and service delivery.

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(2) SPECIFIC GOALS.—This Act is intended (2) continuing a function beyond the period basic pay payable for level IV of the Execu- to achieve the following goals for improve- authorized by law for its existence; tive Schedule under section 5315 of title 5, ments in the performance of the Federal (3) authorizing an agency to exercise a United States Code, for each day (including Government by October 1, 2002: function which is not already being per- traveltime) during which the member is en- (A) A restructuring of the cabinet and sub- formed by any agency; gaged in the performance of duties vested in cabinet level agencies. (4) eliminating the enforcement functions the Commission. (B) A substantial reduction in the costs of of an agency, except such functions may be (2) TRAVEL.—Members of the Commission administering Government programs. transferred to another executive department shall receive travel expenses, including per (C) A dramatic and noticeable improve- or independent agency; or diem in lieu of subsistence, in accordance ment in the timely and courteous delivery of (5) adding, deleting, or changing any rule with sections 5702 and 5703 of title 5, United services to the public. of either House of Congress. States Code. (D) Responsiveness and customer-service (d) APPOINTMENT.— (i) DIRECTOR.— levels comparable to those achieved in the (1) MEMBERS.—The Commissioners shall be (1) APPOINTMENT.—The Chairman of the private sector. appointed for the life of the Commission and Commission shall appoint a Director of the SEC. 2. DEFINITIONS. shall be composed of nine members of Commission without regard to section 5311(b) For purposes of this Act, the term— whom— of title 5, United States Code. (1) ‘‘agency’’ includes all Federal depart- (A) three shall be appointed by the Presi- (2) PAY.—The Director shall be paid at the ments, independent agencies, Government- dent of the United States; rate of basic pay payable for level IV of the sponsored enterprises, and Government cor- (B) two shall be appointed by the Speaker Executive Schedule under section 5315 of porations; and of the House of Representatives; title 5, United States Code. (2) ‘‘private sector’’ means any business, (C) one shall be appointed by the minority (j) STAFF.— partnership, association, corporation, edu- Leader of the House of Representatives; (1) APPOINTMENT.—The Director may, with cational institution, nonprofit organization, (D) two shall be appointed by the majority the approval of the Commission, appoint and or individuals. Leader of the Senate; and fix the pay of employees of the Commission SEC. 3. THE COMMISSION. (E) one shall be appointed by the minority without regard to the provisions of title 5, (a) ESTABLISHMENT.—There is established Leader of the Senate. United States Code, governing appointment an independent commission to be known as (2) CONSULTATION REQUIRED.—The Presi- in the competitive service, and any Commis- the Commission on Government Restruc- dent, the Speaker of the House of Represent- sion employee may be paid without regard to turing and Reform (hereafter in this Act re- atives, the minority leader of the House of the provisions of chapter 51 and subchapter ferred to as the ‘‘Commission’’). Representatives, the majority leader of the III of chapter 53 of that title relating to clas- (b) DUTIES.—The Commission shall exam- Senate, and the minority leader of the Sen- sification and General Schedule pay rates, ine and make recommendations to reform ate shall consult among themselves prior to except that a Commission employee may not and restructure the organization and oper- the appointment of the members of the Com- receive pay in excess of the annual rate of ations of the executive branch of the Federal mission in order to achieve, to the maximum basic pay payable for level V of the Execu- Government to improve economy, efficiency, extent possible, fair and equitable represen- tive Schedule under section 5316 of title 5, effectiveness, consistency, and account- tation of various points of view with respect United States Code. ability in Government programs and serv- to the matters to be studied by the Commis- (2) DETAIL.— ices, and shall include and be limited to pro- sion under subsection (b). (A) DETAILS FROM AGENCIES.—Upon request posals to— (3) CHAIRMAN.—At the time the President of the Director, the head of any Federal de- (1) consolidate or reorganize programs, de- nominates individuals for appointment to partment or agency may detail any of the partments, and agencies in order to— the Commission the President shall des- personnel of the department or agency to the (A) improve the effective implementation ignate one such individual who shall serve as Commission to assist the Commission in car- of their statutory missions; Chairman of the Commission. rying out its duties under this Act. (B) eliminate activities not essential to (4) MEMBERSHIP.—A member of the Com- (B) DETAILS FROM CONGRESS.—Upon request the effective implementation of statutory mission may be any citizen of the United of the Director, a Member of Congress or an missions; States who is not an elected or appointed officer who is the head of an office of the (C) reduce the duplication of activities Federal public official, a Federal career civil Senate or House of Representatives may de- among agencies; or servant, or a congressional employee. tail an employee of the office or committee (D) reduce layers of organizational hier- (5) CONFLICT OF INTERESTS.—For purposes of which such Member or officer is the head archy and personnel where appropriate to of the provisions of chapter 11 of part I of to the Commission to assist the Commission improve the effective implementation of title 18, United States Code, a member of the in carrying out its duties under this Act. statutory missions and increase account- Commission (to whom such provisions would (C) REIMBURSEMENT.—Any Federal Govern- ability for performance. not otherwise apply except for this para- ment employee may be detailed to the Com- (2) improve and strengthen management graph) shall be a special Government em- mission with or without reimbursement, and capacity in departments and agencies (in- ployee. such detail shall be without interruption or cluding central management agencies) to (6) DATE OF APPOINTMENTS.—All members loss of civil service status or privilege. maximize productivity, effectiveness, and ac- of the Commission shall be appointed within (k) SUPPORT.— countability; 90 days after the date of enactment of this (1) SUPPORT SERVICES.—The Office of Man- (3) propose criteria for use by the President Act. agement and Budget shall provide support and Congress in evaluating proposals to es- (e) TERMS.—Each member shall serve until services to the Commission. tablish, or to assign a function to, an execu- the termination of the Commission. (2) ASSISTANCE.—The Comptroller General tive entity, including a Government corpora- (f) VACANCIES.—A vacancy on the Commis- of the United States may provide assistance, tion or Government-sponsored enterprise; sion shall be filled in the same manner as including the detailing of employees, to the (4) define the missions, roles, and respon- was the original appointment. Commission in accordance with an agree- sibilities of any new, reorganized, or consoli- (g) MEETINGS.—The Commission shall meet ment entered into with the Commission. dated department or agency proposed by the as necessary to carry out its responsibilities. (l) OTHER AUTHORITY.—The Commission Commission; The Commission may conduct meetings out- may procure by contract, to the extent funds (5) eliminate the departments or agencies side the District of Columbia when nec- are available, the temporary or intermittent whose missions and functions have been de- essary. services of experts or consultants pursuant termined to be— (h) PAY AND TRAVEL EXPENSES.— to section 3109 of title 5, United States Code. (A) obsolete, redundant, or complete; or (1) PAY.— The Commission shall give public notice of (B) more effectively performed by other (A) CHAIRMAN.—Except for an individual any such contract before entering into such units of government (including other Federal who is chairman of the Commission and is contract. departments and agencies and State and otherwise a Federal officer or employee, the (m) APPLICATION OF FEDERAL ADVISORY local governments) or by the private sector; chairman shall be paid at a rate equal to the COMMITTEE ACT.—The Commission shall be and daily equivalent of the minimum annual rate subject to the provisions of the Federal Advi- (6) establish criteria for use by the Presi- of basic pay payable for level III of the Exec- sory Committee Act (5 U.S.C. App.). dent and Congress in evaluating proposals to utive Schedule under section 5314 of title 5, (n) FUNDING.—There are authorized to be privatize, or to contract with the private United States Code, for each day (including appropriated to the Commission $2,500,000 for sector for the performance of, functions cur- traveltime) during which the chairman is en- fiscal year 1999, and $5,000,000 for each of fis- rently administered by the Federal Govern- gaged in the performance of duties vested in cal years 2000 and 2001 to enable the Commis- ment. the Commission. sion to carry out its duties under this Act. (c) LIMITATIONS ON COMMISSION REC- (B) MEMBERS.—Except for the chairman (o) TERMINATION.—The Commission shall OMMENDATIONS.—The Commission’s rec- who shall be paid as provided under subpara- terminate no later than September 30, 2001. ommendations or proposals under this Act graph (A), each member of the Commission SEC. 4. PROCEDURES FOR MAKING REC- may not provide for or have the effect of— who is not a Federal officer or employee OMMENDATIONS. (1) continuing an agency beyond the period shall be paid at a rate equal to the daily (a) PRESIDENTIAL RECOMMENDATIONS.—No authorized by law for its existence; equivalent of the minimum annual rate of later than July 1, 1999, the President may

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submit to the Commission a report making (2) APPROVAL.—If the report is approved, or for failure to comply with requirements of recommendations consistent with the cri- the President shall submit the report to Con- this section are waived. The motion is not teria under section 3 (b) and (c). Such a re- gress for legislative action under section 6. subject to a motion to postpone. A motion to port shall contain a single legislative pro- (3) DISAPPROVAL.—If the President dis- reconsider the vote by which the motion to posal (including legislation proposed to be approves a final report, the President shall proceed is agreed to or disagreed to shall not enacted) to implement those recommenda- report specific issues and objections, includ- be in order. If a motion to proceed to the tions for which legislation is necessary or ing the reasons for any changes rec- consideration of the implementation bill is appropriate. ommended in the report, to the Commission agreed to, the Senate shall immediately pro- (b) IN GENERAL.—No later than December and Congress. ceed to consideration of the implementation 1, 2000, the Commission shall prepare and (4) FINAL REPORT AFTER DISAPPROVAL.—The bill. submit a single preliminary report to the Commission shall consider any issues or ob- (2) DEBATE.—In the Senate, no amendment President and Congress, which shall in- jections raised by the President and may which is not relevant to the bill shall be in clude— modify the report based on such issues and order. A motion to postpone is not in order. (1) a description of the Commission’s find- objections. No later than 30 calendar days A motion to recommit the implementation ings and recommendations, taking into ac- after receipt of the President’s disapproval bill is not in order. A motion to reconsider count any recommendations submitted by under paragraph (3), the Commission shall the vote by which the implementation bill is the President to the Commission under sub- submit the final report (as modified if modi- agreed to or disagreed to is not in order. section (a); and fied) to the President and to Congress. (3) APPEALS FROM CHAIR.—Appeals from the (2) reasons for such recommendations. SEC. 6. CONGRESSIONAL CONSIDERATION OF RE- decisions of the Chair relating to the appli- (c) COMMISSION VOTES.—No legislative pro- FORM PROPOSALS. cation of the rules of the Senate to the proposal or preliminary or final report (includ- (a) DEFINITIONS.—For purposes of this sec- cedure relating to an implementation bill ing a final report after disapproval) may be tion— shall be decided without debate. submitted by the Commission to the Presi- (1) the term ‘‘implementation bill’’ means (d) CONSIDERATION IN THE HOUSE OF REP- dent and Congress without the affirmative only a bill which is introduced as provided RESENTATIVES.— vote of at least 6 members. under subsection (b), and contains the pro- (1) IN GENERAL.—At any time on or after (d) DEPARTMENT AND AGENCY COOPERA- posed legislation included in the final report the fifth calendar day after the date on TION.—All Federal departments, agencies, submitted to the Congress under section 5(d) which each committee of the House of Rep- and divisions and employees of all depart- (1)(B), (2), or (4), without modification; and resentatives to which an implementation bill ments, agencies, and divisions shall cooper- (2) the term ‘‘calendar day’’ means a cal- is referred has reported that bill, or has been ate fully with all requests for information endar day other than one on which either discharged under subsection (b)(3) from fur- from the Commission and shall respond to House is not in session because of an ad- ther consideration of that bill, the Speaker any such requests for information expedi- journment of more than three days to a date may, pursuant to clause 1(b) of rule XXIII, tiously, or no later than 15 calendar days or certain. such other time agreed upon by the request- (b) INTRODUCTION, REFERRAL, AND REPORT declare the House resolved into the Com- ing and requested parties. OR DISCHARGE.— mittee of the Whole House on the State of SEC. 5. PROCEDURE FOR IMPLEMENTATION OF (1) INTRODUCTION.—On the first calendar the Union for the consideration of that bill. REPORTS. day on which both Houses are in session, on All points of order against the bill, the con- (a) PRELIMINARY REPORT AND REVIEW PRO- or immediately following the date on which sideration of the bill, and provisions of the CEDURE.—Any preliminary report submitted a final report is submitted to the Congress bill shall be waived, and the first reading of to the President and Congress under section under section 5(d) (1)(B), (2), or (4), a single the bill shall be dispensed with. After gen- 4(b) shall be made immediately available to implementation bill shall be introduced (by eral debate, which shall be confined to the the public. During the 60-day period begin- request)— bill and which shall not exceed 10 hours, to ning on the date on which the preliminary (A) in the Senate by the Majority Leader be equally divided and controlled by the Ma- report is submitted, the Commission shall of the Senate, for himself and the Minority jority Leader and the Minority Leader, the announce and hold public hearings for the Leader of the Senate, or by Members of the bill shall be considered for amendment by purpose of receiving comments on the re- Senate designated by the Majority Leader title under the five-minute rule and each ports. title shall be considered as having been read. (b) FINAL REPORT.—No later than 6 months and Minority Leader of the Senate; and (B) in the House of Representatives by the (2) AMENDMENTS.—Each amendment shall after the conclusion of the period for public be considered as having been read, shall not hearing under subsection (a), the Commis- Majority Leader of the House of Representa- be subject to a demand for a division of the sion shall prepare and submit a final report tives, for himself and the Minority Leader of question in the House or in the Committee of to the President. Such report shall be made the House of Representatives, or by Members the Whole, and shall be debatable for not to available to the public on the date of submis- of the House of Representatives designated sion to the President. Such report shall in- by the Majority Leader and Minority Leader exceed 30 minutes, equally divided and conclude— of the House of Representatives. trolled by the proponent and a Member op- (1) a description of the Commission’s find- (2) REFERRAL.—The implementation bills posed thereto, except that the time for con- ings and recommendations, including a de- introduced under paragraph (1) shall be re- sideration, including debate and disposition, scription of changes made to the report as a ferred to the appropriate committee of juris- of all amendments to the bill shall not ex- result of public comment on the preliminary diction in the Senate and the appropriate ceed 20 hours. report; committee of jurisdiction in the House of (3) FINAL PASSAGE.—At the conclusion of (2) reasons for such recommendations; and Representatives. A committee to which an the consideration of the bill, the Committee (3) a single legislative proposal (including implementation bill is referred under this shall rise and report the bill to the House legislation proposed to be enacted) to imple- paragraph may report such bill to the respec- with such amendments as may have been ment those recommendations for which leg- tive House with amendments proposed to be agreed to, and the previous question shall be islation is necessary or appropriate. adopted. No such amendment may be pro- considered as ordered on the bill and amend- (c) EXTENSION OF FINAL REPORT.—By af- posed unless such proposed amendment is ments thereto to final passage without inter- firmative vote pursuant to section 4(c), the relevant to such bill. vening motion except one motion to recom- Commission may extend the deadline under (3) REPORT OR DISCHARGE.—If a committee mit. subsection (b) by a period not to exceed 90 to which an implementation bill is referred (e) CONFERENCE.— days. has not reported such bill by the end of the (1) APPOINTMENT OF CONFEREES.—In the (d) REVIEW BY THE PRESIDENT.— 30th calendar day after the date of the intro- Senate, a motion to elect or to authorize the (1) IN GENERAL.— duction of such bill, such committee shall be appointment of conferees by the presiding of- (A) PRESIDENTIAL ACTION.—No later than 30 immediately discharged from further consid- ficer shall not be debatable. calendar days after receipt of a final report eration of such bill, and upon being reported (2) CONFERENCE REPORT.—No later than 20 under subsection (b), the President shall ap- or discharged from the committee, such bill calendar days after the appointment of con- prove or disapprove the report. shall be placed on the appropriate calendar. ferees, the conferees shall report to their re- (B) PRESIDENTIAL INACTION.— (c) SENATE CONSIDERATION.— spective Houses. (i) IN GENERAL.—If the President does not (1) IN GENERAL.—On or after the fifth cal- (f) RULES OF THE SENATE AND HOUSE.—This approve or disapprove the final report within endar day after the date on which an imple- section is enacted by Congress— 30 calendar days in accordance with subpara- mentation bill is placed on the Senate cal- (1) as an exercise of the rulemaking power graph (A), Congress shall consider the report endar under subsection (b)(3), it is in order of the Senate and House of Representatives, in accordance with clause (ii). (even if a previous motion to the same effect respectively, and as such it is deemed a part (ii) SUBMISSION.—Subject to clause (i), the has been disagreed to) for any Senator to of the rules of each House, respectively, but Commission shall submit the final report, make a motion to proceed to the consider- applicable only with respect to the procedure without further modification, to Congress on ation of the implementation bill. The motion to be followed in that House in the case of an the date occurring 31 calendar days after the is not debatable. All points of order against implementation bill described in subsection date on which the Commission submitted the the implementation bill (and against consid- (a), and it supersedes other rules only to the final report to the President under sub- eration of the implementation bill) other extent that it is inconsistent with such section (b). than points of order under Senate Rule 15, 16, rules; and

VerDate Mar 15 2010 00:42 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00069 Fmt 4624 Sfmt 0634 E:\1998SENATE\S10OC8.REC S10OC8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S12340 CONGRESSIONAL RECORD — SENATE October 10, 1998 (2) with full recognition of the constitu- the Commission shall prepare a final report this act and must be transmitted to the tional right of either House to change the and submit it to the President for review and Commission as a single legislative proposal. rules (so far as relating to the procedure of comment. By December 1, 1999, the Commission shall that House) at any time, in the same man- 2. Presidential Review and Comment: The prepare and submit a single preliminary re- ner, and to the same extent as in the case of President has 30 days to approve or dis- port to the President and Congress. That re- any other rule of that House. approve the Commission’s report. The Com- port must include a description of the Com- SEC. 7. IMPLEMENTATION. mission may or may not modify its report mission’s findings and recommendations and (a) RESPONSIBILITY FOR IMPLEMENTATION.— based on the President’s comments, at its the reasons for such recommendations. This The Director of the Office of Management discretion, and shall issue its final report to proposed must be approved by at least 6 and Budget shall have primary responsibility Congress. members of the Commission. 3. Congressional Consideration: The final for implementation of the Commission’s re- This section also provides that all Federal report shall be introduced in both Houses by port and the Act enacted under section 6 (un- departments and agencies must cooperate request and referred to the appropriate com- less such Act provides otherwise). The Direc- fully with all requests for information from mittee(s). After 30 days, the bills may be tor of the Office of Management and Budget Commission. shall notify and provide direction to heads of considered by the full House and Senate, and SECTION 5. PROCEDURES FOR IMPLEMENTATION affected departments, agencies, and pro- are subject to amendment. Implementation: Once legislation effecting OF REPORTS grams. The head of an affected department, the Commission’s recommendations is en- agency, or program shall be responsible for This section provides that any preliminary acted, the Office of Management and Budget implementation and shall proceed with the report submitted to the President and the shall be responsible for implementing it, and recommendations contained in the report as Congress under Section 4 be made available the General Accounting Office shall report to provided under subsection (b). immediately to the public. During the 60-day (b) DEPARTMENTS AND AGENCIES.—After the Congress on the progress of implementation. period after the submission of the prelimi- enactment of an Act under section 6, each af- GOVERNMENT FOR THE 21ST CENTURY ACT OF nary report, the Commission shall hold pub- fected Federal department and agency as a 1998—SECTION BY SECTION ANALYSIS lic hearings to receive comments on the re- part of its annual budget request shall trans- SECTION 1. SHORT TITLE AND PURPOSE port. mit to the appropriate committees of Con- This act may be known as the ‘‘Govern- Six months after the conclusion of the pe- gress its schedule for implementation of the ment for the 21st Century Act of 1998.’’ Its riod for public comments, the Commission provisions of the Act for each fiscal year. In purpose is to reduce the cost and increase shall submit a final report to the President. addition, the report shall contain an esti- the effectiveness of the Executive Branch. It This report shall be made available to the mate of the total expenditures required and achieves this by creating a commission to public, and shall include a description of the the cost savings to be achieved by each ac- propose to Congress and the President a plan Commission’s findings and recommendation, along with the Secretary’s assessment to reorganize departments and agencies, con- tions, the reasons for such recommendations, of the effect of the action. The report shall solidate redundant activities, streamline op- and a single legislative proposal to imple- also include a report of any activities that erations, and decentralize service delivery in ment the recommendations. have been eliminated, consolidated, or trans- a manner that promotes economy, effi- The President shall then approve or dis- ferred to other departments or agencies. ciency, and accountability in government approve the report within 30 days. If he fails (c) GAO OVERSIGHT.—The Comptroller Gen- programs. to act, after 30 days the report is imme- eral shall periodically report to Congress and SECTION 2. DEFINITIONS diately submitted to Congress. If the Presi- the President regarding the accomplishment, This section defines ‘‘agency’’ as all Fed- dent approves the report, he than shall sub- the costs, the timetable, and the effective- eral departments, independent agencies, gov- mit the report to Congress for legislative ac- ness of the implementation of any Act en- ernment-sponsored enterprises and govern- tion under Section 6. acted under section 6. ment corporations, and defines ‘‘private sec- If he disapproves the final report, the SEC. 8. DISTRIBUTION OF ASSETS. tor’’ as any business, partnership, associa- President shall report specific issues and ob- Any proceeds from the sale of assets of any tion, corporation, educational institution, jections, including the reasons for any department or agency resulting from the en- nonprofit or individual. changes recommended in the report, to the actment of an Act under section 6 shall be— SECTION 3. THE COMMISSION Commission and Congress. For 30 days after (1) applied to reduce the Federal deficit; the President disapproves a report, the Com- and This section establishes a commission, known as the Commission on Government mission may consider any issues and objec- (2) deposited in the Treasury and treated tions raised by the President and may mod- as general receipts. Restructuring and Reform, to make recommendations to reform and restructure the ify the report on these issues and objections. After 30 days, the Commission must submit GOVERNMENT FOR THE 21ST CENTURY ACT— executive branch. The Commission shall its final report (as modified if modified) to BRIEF SUMMARY make proposals to consolidate, reorganize or the President and Congress. This legislation will reduce the cost and eliminate executive branch agencies and pro- increase the effectiveness of the Federal gov- grams in order to improve effectiveness, effi- SECTION 6. CONGRESSIONAL CONSIDERATION OF ernment. It achieves this by establishing a ciency, consistency and accountability in REFORM PROPOSALS commission to propose to Congress and the government. The Commission shall also recommend criteria by which to determine After a final report is submitted to the President a plan to bring the structure and Congress, the single implementation bill operations of the Federal government in line which functions of government should be privatized. The Commission may not propose shall be introduced by request in the House with the needs of Americans in the next cen- and Senate by the Majority and Minority tury. to continue agencies or functions beyond their current legal authorization, nor may Leaders in each chamber or their designees. Duties of the Commission: The Commis- This section stipulates that the implemen- sion is authorized under this legislation to: the Commission propose to eliminate enforcement functions of any agencies or tation bill be referred to the appropriate Reorganize Federal departments and agen- committee of jurisdiction in the Senate and cies, eliminate activities not essential to ful- change the rules of either House of Congress. The Commission shall be composed of 9 the appropriate committee of jurisdiction in filling agency missions, streamline govern- members appointed by the President, the the House of Representatives. Each comment operations, and consolidate redundant Majority and Minority Leaders of the Sen- mittee must report the bill to its respective activities. House chamber within 30 days with relevant The Commission would not be authorized ate, and the Speaker and Minority Leader of amendments proposed to be adopted. If a to: Continue any agency or function beyond the House of Representatives. The Commission shall be managed by a Di- committee fails to report such bill within 30 its current authorization, authorize func- rector and shall have a staff, which may in- days, that committees is immediately dis- tions not performed already by the Federal clude detailees. The Office of Management charged from further consideration, and the government, eliminate enforcement func- and Budget shall provide support services bill is placed on the appropriate calendar. tions, and change rules of Congress. Composition of the Commission: The Com- and the Comptroller General may provide as- Section 6(c) outlines procedures for Senate mission shall consist of 9 members appointed sistance to the Commission. floor consideration of legislation imple- This section also authorizes $2.5 million to by the President and the Congressional menting the Commission’s recommendation. be appropriated in fiscal years 1999 and $5 Leadership of both parties. No more than 5 On or after the fifth calendar day after the million for fiscal years 2000 and 2001 for the members can be affiliated with one party. date on which the implementation bill is How the Commission Works: The process Commission to carry out its duties, and placed on the Senate calendar, any Senator established in this legislation is bipartisan, states that the Commission shall terminate may make a privileged motion to consider allows input by the President, and is fully no later than September 30, 2001. the implementation bill. Only relevant open and public. SECTION 4. PROCEDURES FOR MAKING amendments shall be in order, and motions 1. The Commission Report: By July 1, 1999, RECOMMENDATIONS to postpone, recommit, or reconsider the the President may submit his recommenda- By July 1, 1999, the President may submit vote by which the bill is agreed to are not in tions to the Commission. By December 1, his recommendation on government reorga- order. 1999, the Commission shall submit to the nization to the Commission. The President’s Section 6(d) outlines procedures for House President and Congress a preliminary rec- recommendation must be consistent with the floor consideration of legislation imple- ommendations on restructuring the Federal duties and limitations given to the Commis- menting the Commission’s recommenda- Government. After a public comment period, sion in formulating its recommendations by tions.

VerDate Mar 15 2010 00:42 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00070 Fmt 4624 Sfmt 0634 E:\1998SENATE\S10OC8.REC S10OC8 mmaher on DSKCGSP4G1 with SOCIALSECURITY October 10, 1998 CONGRESSIONAL RECORD — SENATE S12341 General debate on the implementation bill is towards the other. Even under a bal- areas. The program will be a win win limited to 10 hours equally divided in the anced budget and a budget surplus, in- proposition for all involved because House, and controlled by the Majority and efficiencies and rising costs remain in employers choosing to participate in Minority Leaders. Amendments shall be con- the Federal government. A balanced the project by bringing jobs to the sidered by title under the five minute rule, and shall be debatable for 30 minutes equally budget and a budget surplus does not rural area will be assured of a highly divided. Debate on all amendments shall not preclude the Federal government from skilled workforce. exceed 20 hours. being accountable to the American The program will provide residents This section further states that within 20 people. The Government for the 21st with intensive services to train them calendar days, conferees shall report to their Century Act would see to it that the for the new jobs in the telecommuni- respective House. Federal government will continue to be cations industry. The intensive serv- SECTION 7. IMPLEMENTATION accountable.∑ ices will include customized training The Office of Management and Budget and appropriate remedial training, sup- shall have primary responsibility for imple- By Mr. DOMENICI: port services and placement of the in- menting the Commission’s report and any S. 2624. A bill to establish a program dividual in one the new jobs created by implementation legislation that is enacted, for training residents of low-income the program. unless otherwise specified in the implemen- rural areas for, and employing the resi- And that is what this bill is about, tation bill. Federal departments and agencies are re- dents in, new telecommunications in- providing people with the tools needed quired to include a schedule for implementa- dustry jobs located in the rural areas, to succeed. With these steps we are em- tion of the provisions of the implementation and for other purposes; to the Com- barking on the road of providing our as a part of their annual budget request. mittee on Labor and Human Resources. rural areas throughout our nation with GAO is given oversight responsibility and THE RURAL EMPLOYMENT IN a vehicle to create jobs. We are cre- is required to report to the Congress and the TELECOMMUNICATIONS INDUSTRY ACT OF 1998 ating opportunities and an environ- President regarding the accomplishment, the ment where our citizens can succeed costs, the timetable, and the effectiveness of Mr. DOMENICI. Mr. President, today, with great pleasure, I introduce ‘‘The and our communities can be vibrant. the implementation process. I ask unanimous consent that the bill SECTION 8. DISTRIBUTION OF ASSETS Rural Employment in Telecommuni- cations Industry Act of 1998.’’ be printed in the RECORD. Any proceeds from the sale of assets of any There being no objection, the bill was department or agency resulting from the im- The introduction of this Bill marks a ordered to be printed in the RECORD, as plementation legislation shall be applied to historic opportunity for rural commu- the Federal deficit and deposited in the nities to create jobs within the tele- follows: Treasury and treated as general receipts.∑ communications industry. The Bill es- S. 2684 ∑ Mr. BROWNBACK. Mr. President, I tablishes a program to train residents Be it enacted by the Senate and House of Rep- of low income rural areas for employ- resentatives of the United States of America in am pleased to join Senator THOMPSON Congress assembled, ment in telecommunications industry in introducing the Government for the SECTION 1. SHORT TITLE. 21st Century Act of 1998. Both majority jobs located in those same rural areas. This Act may be cited as the ‘‘Rural Em- and minority members of the Senate As many of my colleagues know, I ployment in Telecommunications Industry Governmental Affairs Committee have have an initiative called ‘‘rural pay- Act of 1998.’’ been working on this legislation day’’ and I believe this Bill is yet an- SEC. 2. DEFINITIONS. throughout this Congress and have other step in creating jobs for our rural In this Act: come to agreement to introduce this areas. All too often a rural area is (1) DISLOCATED WORKER; LOW-INCOME INDI- important bill. characterized by a high number of low VIDUAL.—The terms ‘‘dislocated worker’’ and income residents and a high unemploy- ‘‘low-income individual’’ have the meanings The Government for the 21st Century given the terms in section 101 of the Work- Act would establish a commission to ment rate. force Investment Act of 1998 (29 U.S.C. 2801). propose to Congress and the President Moreover, our rural areas are often (2) LOW-INCOME RURAL AREA.—The term a plan to reduce the cost and increase dependent upon a small number of em- ‘‘low-income rural area’’ means a county the effectiveness of the Federal govern- ployers or a single industry for employ- that— ment by bringing its structure and opment opportunities. Consequently, (A) has a 1996 population of not less than erations in line with the needs of when there is a plant closing or a 60,000 and not more than 105,000 persons; America in the next century. The com- downturn in the economy or a slow- (B) contains a municipality with a 1996 down in the area’s industry the already population of not less than 35,000 and not mission would consist of nine members more than 50,000 persons; appointed by the President and the present problems are only compounded. (C) has a land area of not less than 5,500 congressional leadership of both par- Mr. President, I would like to take a and not more than 6,100 square miles; ties. moment and talk about New Mexico. (D) has a population density of not less The President may submit his rec- While New Mexico may be the 5th than 10 and not more than 20 persons per ommendations to the Commission by largest state by size with its beautiful square mile; July 1, 1999. By December 1, 1999, the mountains, desert, and Great Plains (E) has a 1996 per capita income that is— Commission shall submit to the Presi- and vibrant cities such as Albuquerque, (i) not less than $16,000 and not more than dent and Congress preliminary rec- Santa Fe, and Las Cruces it is also a $16,500; and (ii) not less than 86 and not more than 88 ommendations on restructuring the very rural state. The Northwest and percent of the statewide per capita income Federal government. After a public Southeast portions of the state are cur- for the State in which the county is located; comment period, the Commission will rently experiencing difficulties as a re- or prepare a final report to the President. sult of the downturn in the oil and gas (F) is a county no part of which is— Legislation based on the final report industry. Additionally, the community (i) within an area designated as a standard would be introduced in both Houses of Roswell has been dealt a blow with metropolitan statistical area by the Director and referred to the appropriate com- the closing of the Levi Straus manufac- of the Office of Management and Budget; or mittee of jurisdiction. The bill would turing plant. (ii) within an area designated as a metro- As I stated before, rural areas that politan statistical area by the Director of be considered by both Houses after 30 the Office of Management and Budget; or days. Once the legislation is signed simply do not have the resources of (G)(i) is experiencing a significant contrac- into law, the Office of Management and more metropolitan areas can be simply tion in the oil and natural gas exploration Budget would be responsible for imple- devastated by a single event or down- and development industry; mentation. turn in the economy. And that Mr. (ii) experienced a plant closing within 1 The Commission would reinforce our President is why I am introducing year before the date of enactment of this Act work to maintain a balanced budget. ‘‘The Rural Employment in Tele- that significantly impacted the county; or Good government must have agencies communications Industry Act of 1998.’’ (iii) is in close proximity to an Indian res- that operate efficiently and effectively The Bill will allow the Secretary of ervation, as determined by the Bureau of In- dian Affairs. within their core mission and within Labor to establish a program to pro- (3) INTENSIVE SERVICES.—The term ‘‘inten- their budget. We have achieved one mote rural employment in the tele- sive services’’ means services described in goal of operating within a balanced communications industry by providing section 134(d)(3) of the Workforce Investment budget but we must continue to work grants to states with low income rural Act of 1998 (29 U.S.C. 2864(d)(3)).

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(4) SECRETARY.—The term ‘‘Secretary’’ (2) an assurance that the project will in- (5) will serve an area significantly im- means the Secretary of Labor. clude a customized training program for the pacted by the contraction of the oil and nat- (5) STATE.—The term ‘‘State’’ means 1 of customer service and supervisory com- ural gas exploration and development indus- the several States. petencies needed in the telecommunications try; SEC. 3. RURAL EMPLOYMENT IN THE TELE- industry jobs to be located in the low-income (6) will serve an area significantly im- COMMUNICATIONS INDUSTRY PRO- rural areas served; pacted by recent plant closings; or GRAM. (3) an assurance that the project will in- (7) is designed to create 1,000 or more new (a) IN GENERAL.—The Secretary shall es- clude appropriate remedial training in such jobs within 2 years of the commencement of tablish a program to promote rural employ- areas as reading, writing, math, and English the training. ment in the telecommunications industry. In as a second language for eligible individuals SEC. 5. AUTHORIZATION OF APPROPRIATIONS. carrying out the program, the Secretary who the entity carrying out the project as- There are authorized to be appropriated shall make grants to States for projects de- sesses and determines need such training; such sums as may be necessary to carry out scribed in subsection (b). (4) includes information describing link- this Act for fiscal years 1999 through 2003. (b) USE OF FUNDS.—A State that receives a ages, including linkages relating to pro- In the RECORD of October 9, 1998, on grant under subsection (a) shall use the viding supportive services for participants in page S12187 the following statement of funds made available through the grant to and graduates of the project, between— Mr. KERREY to accompany his intro- carry out a State telecommunications em- (A) the entity carrying out the project; and ployment and training project. In carrying (B) one-stop operators (as defined in sec- duced bill. S. 2613, was incorrectly at- out the project, the State shall— tion 101 of the Workforce Investment Act of tributed to Mr. KERREY. The perma- (1) train eligible individuals for new tele- 1998), one-stop partners (as defined in section nent RECORD will be corrected to re- communications industry jobs that will be 101 of the Workforce Investment Act of 1998), flect the following: located in low-income rural areas pursuant State workforce investment boards estab- By Mr. KERREY: to arrangements with employers partici- lished under section 111 of such Act, and S. 2613. A bill to accelerate the per- pating in the project, including ensuring local workforce investment boards estab- centage of health insurance costs de- that individuals receive— lished under section 117 of such Act; ductible by self-employed individuals (A) intensive services; (5) information identifying certification (B) customized training and appropriate re- through the use of revenues resulting criteria for individuals who successfully from an estate tax technical correc- medial training described in paragraphs (2) complete the training; and (3) of section 4; and (6) an assurance that employers partici- tion; to the Committee on Finance. (C) appropriate supportive services; and pating in the project will make available HEALTH CARE DEDUCTIBILITY LEGISLATION (2) arrange for the employment of the indi- contributions to the costs of assessing and Mr. KERREY. Mr. President, I have a viduals in the telecommunications industry training participants in the project including very simple proposition for the Senate. jobs. those participants who are not eligible indi- Let’s close an accidental tax loophole (c) ELIGIBLE PARTICIPANTS.—To be eligible viduals described in subparagraph (c) for the to participate in a project described in sub- for the heirs of people who leave es- new telecommunications jobs in an amount section (a), an individual shall be— tates worth more than $17 million and equal to not less than $1 for every $1 of Fed- (1) a resident of a low-income rural area; use the savings to help self-employed eral funds provided under the grant; (2)(A) a low-income individual; (7)(A) an assurance that the project will in- Americans—like the thousands of en- (B) a dislocated worker from the oil and clude an appropriate performance assess- trepreneurs on Nebraska’s farms and natural gas exploration and development in- ment program that will measure— ranches—afford the soaring cost of dustry; (i) the rate of completion of the training health care. (C) an out-of-school youth; by participants in the training; Today I am submitting legislation to (D) an individual with a disability, as de- (ii) the percentage of the participants who accomplish that purpose. fined in section 101 of the Workforce Invest- obtain unsubsidized employment; The facts are very simple. Prior to ment Act of 1998; (iii) the wages of the participants at place- (E) an individual who is receiving, or who 1997, when we passed the 1997 Balanced ment in the employment; and has received within the past year, assistance Budget Agreement, the first $600,000 of (iv) the percentage of the participants re- under the State temporary assistance for an estate was excluded from taxes. The tained in the employment after 6 months of needy families program established under old law gradually phased out this ex- employment; and part A of title IV of the Social Security Act (B) an assurance that the entity carrying clusion once an estate reached $17 mil- (42 U.S.C. 601 et seq.) or other public assist- out the project will annually submit to the lion. The 1997 Act increases the value ance; Secretary the results of the performance as- of an estate not subject to taxes. But a (F) a veteran, as defined in section 101 of sessment program; and drafting error in the 1997 Balanced the Workforce Investment Act of 1998; (8)(A) information explaining how the ac- (G) a displaced homemaker, as defined in Budget Agreement failed to include the tivities carried out through the project are section 101 of the Workforce Investment Act accompanying phase out of the exclu- linked to State economic development ac- of 1998; sion on estates over $17 million. tivities; and (H) an older individual, as defined in sec- Clearly this error needs to be fixed. (B) information describing commitments tion 101 of the Workforce Investment Act of Letting this mistake stand uncorrected from private sector employers to locate new 1998; telecommunications jobs and facilities with- will cost the American taxpayers near- (I) a homeless individual; in the low-income rural areas to be served, ly $900 million over the next ten years. (J) an individual eligible to participate in including commitments to provide any need- To give you an idea of how much this activities carried out under section 166 of the ed upgrade in the telecommunications infra- provision does to benefit the few, con- Workforce Investment Act of 1998; structure. sider that in 1995, the Internal Revenue (K) an individual eligible to participate in (b) ACCEPTANCE OF APPLICATIONS.—The employment and training activities under Service estimates that just 300 tax re- Secretary shall accept applications sub- turns were filed on estates over $20 mil- section 134 of the Workforce Investment Act mitted under subsection (a) not later than 90 of 1998; days after the date of enactment of this Act. lion. (L) a long-term unemployed individual; or (c) EVALUATION OF APPLICATIONS.—The Congress had the opportunity to cor- (M) an individual with multiple barriers to Secretary shall evaluate, and approve or re- rect this error during consideration of employment; and ject, each application submitted under sub- the IRS Reform bill this year. Regret- (3) an individual who has been assessed by section (a) that meets the criteria described tably, the objections of a few to mak- the entity carrying out the project and de- in subsections (a) and (b) not later than 60 ing this right overcame the support of termined to need intensive services. days after submission of the application. the many for doing so. (d) LIMITATION.—The Secretary shall make (d) PRIORITY.—In determining which States the grants to not more than 3 States. receive grants under subsection (a), the Sec- Meanwhile, Mr. President, self-em- SEC. 4. APPLICATION AND STATE PLAN. retary will give priority to a State submit- ployed Americans are struggling to (a) CONTENTS.—To be eligible to receive a ting a State plan describing a project that— cope with the rising cost of health in- grant under this Act, a State shall submit an (1) will serve an area of high unemploy- surance, which they—unlike Americans application to the Secretary of Labor at such ment; employed by others—cannot fully de- time, in such manner, and containing such (2) will serve an area with a significant bi- duct from their taxable income. The information as the Secretary may require, lingual population; face of their struggle is most evident including a State plan that includes— (3) will serve an area with a significant mi- on farms and ranches. In Nebraska, (1) information demonstrating how the nority population, including Native Ameri- project will train and employ eligible indi- cans; producers are facing plunging com- viduals, including individuals described in (4) will serve an area with a high percent- modity prices at the same time they subparagraphs (C) through (M) of section age of youth who have failed to complete face soaring costs of living, especially 3(c)(2); secondary school; for

VerDate Mar 15 2010 00:42 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00072 Fmt 4624 Sfmt 0634 E:\1998SENATE\S10OC8.REC S10OC8 mmaher on DSKCGSP4G1 with SOCIALSECURITY October 10, 1998 CONGRESSIONAL RECORD — SENATE S12343 health insurance. Today they can de- cost agencies, it is an important step Further, the prospective payment sys- duct 40 percent of the cost of their in- in the right direction. In fact, we have tem scheduled to go on-line in October, surance. Under current law, they can- received letters of support from the 1999, will be delayed by several months not fully deduct that cost until 2007. Visiting Nurse Associations of America to one year, because of year 2000 com- So, my proposal is simple. Let’s close and the National Association for puter programming problems, accord- the loophole that everyone admits was Homecare. ing to the Health Care Financing Ad- an accident, and use that money to ac- Let’s remember where we were before ministration. celerate the full deductibility of health the Balanced Budget Act of 1997. Home This legislation takes several steps insurance for the self-employed. It’s a health spending was growing by leaps to improve the Medicare home health clear choice between a loophole that and bounds, cases of fraud and abuse care IPS and addresses the 15% cut. nobody wanted to exist and entre- were common, and the Medicare pro- First, it increases equity by reducing preneurs who—especially those on our gram was headed towards bankruptcy the extreme variations in payment farms and ranches—may not exist in 2003. limits applicable to old agencies within much longer if we don’t get them some Last year, Medicare spent $17 billion states and across states. This is help. for 270 million home health care visits achieved through a budget-neutral While I recognize time is short for so that one out of every ten bene- blend for ‘‘old’’ agencies. passing this bill this year, I urge my ficiaries received care at home from a Second, it increases fairness by re- colleagues to join me in supporting nurse, a physical or occupational ther- ducing the artificial payment limit dif- this legislation and in pursuing this apist, and/or a nurse aide. ferences between ‘‘old’’ and ‘‘new’’ goal next year. Unlike any other Medicare benefit, agencies. Such distinctions are con- tributing to the perception of arbitrari- f the home health benefit has no limits on the number of visits or days of care ness in the home health care system. MEDICARE HOME HEALTH FAIR a beneficiary can receive, beneficiaries And, our proposal does not create addi- PAYMENT ACT OF 1998—S. 2616 pay no deductible, nor do they pay any tional classes of home health agencies, Statements on the bill, S. 2616, intro- co-payments. such as ‘‘new-new’’ agencies subject to duced on October 9, 1998, did not appear Prior to BBA, home health agencies even deeper, arbitrary payment limits in the RECORD. The material follows: were reimbursed on a cost basis for all in the future. Restricting new entrants By Mr. ROTH (for himself, Mr. their costs, as long as they maintained to home health care is an inappropriate MOYNIHAN, Mr. CHAFEE, Mr. average costs below certain limits. barrier to entry in underserved areas— BREAUX, Mr. JEFFORDS, Mr. This payment system gave immense in- both in rural and inner city areas. In DOMENICI, Ms. COLLINS, Mr. centives for home health agencies to the legislation, greater fairness is BAUCUS, Mr. D’AMATO, Mr. increase the volume of services deliv- achieved by eliminating the 2 percent BRYAN, Mr. HATCH, Mr. KERREY, ered to patients, and it attracted many discount applicable to new agencies, Mr. ROCKEFELLER, Mr. NICKLES, new agencies to the program. and raising the per visit limits for all Mr. GRASSLEY, Ms. MOSELEY- From 1989 to 1996, Medicare home agencies from 105 percent to 110 per- BRAUN, and Mr. MURKOWSKI): health payments grew with an average cent of the national median. S. 2616. A bill to amend title XVIII of annual increase of 33 percent, while the Third, the proposal lengthens the the Social Security Act to make revi- number of home health agencies transition period for payment changes sions in the per beneficiary and per swelled from about 5,700 in 1989 to more by providing all agencies a longer tran- visit payment limits on payment for than 10,000 in 1997. sition period in which to adjust to health services under the medicare pro- In response to this rapid cost growth changed payment limits. It creates a gram; to the Committee on Finance. and concerns about program abuses, sustainable fiscal base for the statu- torily mandated prospective payment MEDICARE HOME HEALTH FAIR PAYMENT ACT OF the BBA included a number of changes 1998 to home health care. Congress and the system (PPS) by delaying the sched- Mr. ROTH. Mr. President, I rise to in- Administration supported moving to- uled 15 percent cut and the PPS for one troduce the Medicare Home Health ward a Prospective Payment System year. Fair Payment Act of 1998. (PPS). In order for HCFA to move to a The following is a summary of the This legislation is the product of a PPS, however, a number of computer Medicare Home Health Fair Payment great deal of hard work and analysis. It system changes were necessary with Act of 1998: has bipartisan, bicameral, support. respect to their home health oper- PER BENEFICIARY LIMITS Currently, the bill has 15 cosponsors, ations. The interim payment system 1. ‘‘Old’’ agency: payment is a blended for- and similar legislation was introduced (IPS) was developed to manage reim- mula equal to 50 percent BBA policy + 50 percent (50 percent national mean + 50 percent in the House of Representatives. bursement until the PPS could be im- regional mean); and Staff worked to make sure that the plemented. 2. ‘‘New’’ agency: payment is increased by technical aspects of this bill could be Significant Medicare payment issues 2 percent to equal 100 percent of the national implemented. After technical review for home health care have emerged median, (which continues to be regionally from the Health Care Financing Ad- from our analysis from the impact of adjusted for wages). ministration, it is our understanding the IPS. There are severe equity issues PER VISIT LIMITS that the changes in home health pay- in payment limit levels both across 3. Increase the per visit limits from 105 per- ments could be implemented as in- states and within states. These wide cent to 110 percent of the median. tended. disparities are exacerbated by a major DELAY BOTH THE 15 PERCENT ACROSS-THE- I would like to thank the many Sen- distinction drawn in payment rules be- BOARD CUTS AND THE PPS ators who were very helpful and con- tween so-called ‘‘new’’ versus ‘‘old’’ 4. Delay of the 15 percent across-the-board tributed to the debate of addressing the agencies. ‘‘Old’’ agencies being those cuts in payment limits and the implementa- home health interim payment system. tion of the prospective payments system now that were in existence prior to 1993, scheduled to take effect on October 1, 1999. In particular, I commend Senator COL- and ‘‘New’’ agencies those in existence DESCRIPTION OF OFFSET POLICIES LINS, Senator GRASSLEY, Senator since then. 1. Reduce the home health care annual BREAUX, Senator COCHRAN, and Senator The effects of the current home market basket (MB) in the following man- BOND. All put forward legislative pro- health payment methodology are that ner: for fiscal year 2000 it is MB minus 0.5 posals which we examined closely, and similar agencies providing similar percentage point; for FY 2001 it is MB minus which helped us in our development of services in the same community face 0.5 percentage point; for FY 2002 and FY 2003 the legislation now before us. very different reimbursement limits, it is full MB; and in FY 2004 it is MB plus 1.0 With this budget neutral proposal, leading to highly arbitrary payment percentage point. Savings of $300 million about 82% of all home health agencies differences. over 5 years. in the nation will benefit from im- The payment limit issues will deepen 2. Non-Controversial Revenue Raisers— Revenues of $406 million over 5 years. proved Medicare payments. Although I significantly more in 1999 due to a a. Math Error Procedures—This provision have heard concerns that we do not go scheduled 15% cut in already tight and would clarify the math error procedures that far enough to help some of the lowest severely skewed payment limit levels. the IRS uses.

VerDate Mar 15 2010 00:42 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00073 Fmt 4624 Sfmt 0634 E:\1998SENATE\S10OC8.REC S10OC8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S12344 CONGRESSIONAL RECORD — SENATE October 10, 1998 b. Rotavirus Vaccine—This provision will VNAA strongly supports the delay in the by rates are established in advance. An add an excise tax of 75 cents on a vaccine 15% cut and supports the adjustment to fu- interim payment system (IPS) was also against rotavirus gastroenteritis, a highly ture home health market baskets as a need- established while the Health Care Fi- contagious disease among young children. ed partial offset to the cost of that impor- nancing Administration works to de- c. Modify Net Operating Loss Carryback tant action. Rules—Certain liability losses can be carried VNAA hopes that its support for this offset velop the PPS for home health care back over ten years. This provision would will facilitate quick action by the Senate. If agencies. clarify the types of losses that qualify for there are any questions about our position, The home health care industry is dis- the 10-year carryback. please contact our Washington Representa- satisfied with the IPS. The resulting d. Non-Accrual Based Method—This provi- tive, Randy Fenninger, at 202–833–0007, Ext. concern expressed by many Members of sion would limit the use of the non-accrual 111. Congress prompted us to ask the Gen- experience method of accounting to amounts Thank you for your continued efforts on eral Accounting Office (GAO) to exam- received for the performance of certain pro- behalf of cost effective home health agencies ine the question of beneficiary access fessional services. and their patients. e. Information Reporting—This provision Sincerely, to home care. While the GAO found requires reporting on the cancellation of in- CAROLYN MARKEY, that neither agency closures nor the debtedness by non-bank institutions. President and CEO. interim payment system significantly 3. Budget Pay-Go surplus for remaining affected beneficiary access to care, I offset. NATIONAL ASSOCIATION remain concerned that the potential At the beginning of my statement, I FOR HOME CARE, closure of many more home health recognized my colleagues for their Washington, DC, October 7, 1998. agencies might ultimately affect the leadership on this issue. Now, I would Hon. WILLIAM V. ROTH, Jr., care that beneficiaries receive, particu- like to especially thank the staff in- Chair, Committee on Finance, larly beneficiaries with chronic illness. volved for their hard work and dedica- U.S. Senate, Washington, DC. DEAR SENATOR ROTH: The National Asso- The bill we are introducing today ad- tion to the completion of this bill. This ciation for Home Care (NAHC) is the largest justs the interim payment system to represented a herculean task on their home care organization in the nation, rep- achieve equity and fairness in pay- behalf. In particular, I would like to resenting all types of home health agencies ments to home health agencies. It recognize the principal staff involved and the patients they serve. We have had would reduce extreme variations in who spent many long hours putting the continuing concerns over the past year repayment limits applicable to old agen- details of this package together, they garding the effects of the home health provi- cies within states and across states and are Gioia Brophy and Kathy Means of sions of the Balanced Budget Act of 1997, par- would reduce artificial payment level ticularly by the interim payment system differences between ‘‘old’’ and ‘‘new’’ my staff; Katie Horton and David (IPS). Podoff from Finance Minority staff; We are pleased that you and other mem- agencies. The bill would provide all Louisa Buatti and Scott Harrison of bers of the Senate Finance Committee have agencies a longer transition period in the Medicare Payment Advisory Com- shown the leadership to develop a package of which to adjust to changed payment mission; Tom Bradley and Cyndi IPS refinements that will help to ease some limits. Dudzinski of the Congressional Budget of the most pressing problems of the new Clearly, since the bill may not ad- Office; Jennifer Boulinger and Ira Ber- payment system. We are particularly grate- dress all the concerns raised by Medi- ful for your inclusion of a one-year delay of nie of the Health Care Financing Ad- care beneficiaries and by home health the 15 percent reduction that is currently agencies, we should revisit this issue ministration; John Goetchus of Senate scheduled for October 1, 1999. While there re- Legislative Counsel; and Richard Price main a number of important issues relating next year. A thorough review is needed of the Congressional Research Service. to the IPS that we believe must be addressed to determine whether the funding Mr. President, I ask unanimous con- in the 106th Congress, your proposal will mechanism for home health is suffi- sent that letters of support from the make a meaningful difference in helping cient, fair and appropriate, and wheth- Visiting Nurse Association of America agencies to remain open and to serve Medi- er the benefit is meeting the needs of and the National Association of care beneficiaries throughout the nation. Medicare beneficiaries. Many thanks for all of your efforts. We America’s home health agencies pro- Homecare be printed in the RECORD. look forward to working with you, members There being no objection, the letters vide invaluable services that have of the House of Representatives, and others given many Medicare beneficiaries the were ordered to be printed in the in developing additional relief legislation RECORD, as follows: early next year. ability to stay home while receiving medical care. An adjustment to the in- VISITING NURSE ASSOCIATIONS Sincerely, OF AMERICA, VAL J. HALAMANDARIS, terim payment system and delay in Boston, MA, October 10, 1998. President. further payment reductions will enable Hon. WILLIAM V. ROTH, Jr., home health agencies to survive the Chairman, Committee on Finance, Mr. MOYNIHAN. Mr. President, I am transition into the prospective pay- U.S. Senate, Washington, DC. pleased to join my distinguished Chair- ment system while continuing to pro- DEAR CHAIRMAN ROTH: The Visiting Nurse man, Senator ROTH, and other col- vide essential care for beneficiaries. Associations of America (VNAA) deeply ap- leagues in introducing a bill to im- Mr. GRASSLEY. Mr. President, I am preciates your efforts to craft a solution to prove the home health interim pay- pleased to cosponsor the Medicare the problems caused by the Medicare home ment system. Home Health Fair Payment Act of 1998, health interim payment system for our Prior to the Balanced Budget Act of members and other cost effective home which is a first step toward addressing health agencies. Urgent action is needed be- 1997 (BBA), home health agencies were the crisis in Medicare home health fore Congress adjourns to provide relief to reimbursed on a cost basis for all their care. This is not a perfect bill, but it’s these agencies to assure that they can con- costs, as long as they maintained aver- a good bill, and it is the best we can do tinue to care for their Medicare patients. age costs below certain limits. That at this moment in time. And it’s a good We understand that one barrier to action payment system provided incentives example of the Senate listening to the has been the difficulty in finding acceptable for home health agencies to increase American people. Let’s pass it right funding offsets to the modest Medicare the volume of services delivered to pa- spending required to achieve a workable now. package. We have been advised that the Fi- tients, and it attracted many new The Senate Special Committee on nance Committee is currently considering an agencies to the program. From 1989 to Aging, which I chair, highlighted the adjustment to future home health market 1996, Medicare home health payments problems with the home health Interim baskets that would generate approximately grew at an average annual rate of 33 Payment System (IPS) in a hearing on $300 million in new Medicare savings to off- percent, while the number of home March 31st of this year. For more than set in part the cost of the one year delay in health agencies increased from about six months since that day, I have been the automatic 15% reduction in home health 5,700 in 1989 to more than 10,000 in 1997. working to find a solution to these payments now scheduled for October 1, 1999. In order to constrain the growth in problems, because I believe that it’s Specifically, VNAA understands that this costs and usage of home care, the BBA proposal would reduce the market basket Congress’ responsibility. It’s true that index in 2000 and 2001 by 0.5 percentage point. included provisions that would estab- the IPS legislation was primarily In 2002 and 2003 the full market basket index lish a Prospective Payment System HCFA’s product. And HCFA’s imple- would be used, and in 2004 the market basket (PPS) for home health care, a method mentation of the IPS has been ques- would be increased by one percentage point. of paying health care providers where- tionable in many respects. But even if

VerDate Mar 15 2010 00:42 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00074 Fmt 4624 Sfmt 0634 E:\1998SENATE\S10OC8.REC S10OC8 mmaher on DSKCGSP4G1 with SOCIALSECURITY October 10, 1998 CONGRESSIONAL RECORD — SENATE S12345 HCFA proposed it, there’s no denying Louisiana. Every graph I see on home sive look at the home health benefit. It that Congress passed the IPS. So I have health shows Louisiana off the charts— is imperative that the Congress address argued all year that it is incumbent on Louisiana has the highest per bene- this issue again next year since this Congress to fix what’s wrong with it, ficiary spending in the country; we proposal represents only a temporary this year. have more visits per patient than any fix. But it is an important one. The What’s wrong with the IPS? In short, other state in the country; Louisiana Senate bill: it bases payment on an individual represents 5.2% of all Medicare home (1) Institutes a new blend for old home health agency’s historical costs health visits even though only 2.3% of agencies to increase reimbursements to from Fiscal Year 1994. That means that Medicare beneficiaries live in the state. low-cost agencies and reduce payments if the agency had high costs per patient There are 466 home health agencies in to very high-cost agencies. This will in that year, it can receive relatively Louisiana—we have more home health begin to level the playing field and pre- high payment this year. That would be agencies than McDonalds in the state. pare all providers for prospective pay- fine if HCFA knew that the agency had So I know firsthand that there are ment. While the Senate proposal nar- sicker patients this year, but the sad problems with home health and that rows the discrepancy between old and truth is that HCFA has no idea. So IPS states like Louisiana could afford a renew agencies, I think much more needs has been a windfall for some agencies, duction in the number of agencies. The to be done to restore equity to the pro- but crushing for agencies with low his- problem is that the interim payment gram. torical costs. We have a lot of those in system crafted by Congress and the Ad- (2) Slightly increases payments to so- Iowa, where we still know the value of ministration last year is causing the called ‘‘new’’ agencies, those in busi- a dollar. Many of those hit hardest are wrong agencies to go out of business. ness since 1994. While in Louisiana this the ‘‘little guys,’’ the small businesses It is clear that the IPS has had seri- will only mean about an extra $52 per that are the lifeblood of the program in ous unintended consequences. In Lou- patient per year, it is important to rec- rural areas. isiana and other states, the interim ognize that new agencies need some re- For months, I have worked with a bi- payment system has for the most part lief. partisan group of Finance committee rewarded inefficient providers and (3) Increases the per visit cost limits members, including especially Sen- forced many low-cost, efficient agen- from 105% of the national median to ators BREAUX, BAUCUS, and ROCKE- cies out of the program. For example, 110% of the national median. FELLER, on fixing IPS. In July we in- you could have one agency with a per (4) Most importantly, the Senate pro- troduced the product of those efforts, beneficiary limit of $12,000 competing posal delays the across-the-board 15% the Home Health Access Preservation with another agency down the street reduction that is currently scheduled Act, and that bill clearly influenced with a per beneficiary limit of $4,000. for October 1, 1999. HCFA was origi- the new Finance bill. I thank Chairman What we did with IPS is essentially put nally required to institute a prospec- ROTH and his fine staff for their will- that $4,000 agency at such a competitive payment system for home health ingness to work with us to find a viable tive disadvantage that there is no way agencies by October 1 of next year. Be- approach. In the final months of this it can stay in business. cause of the Y2K problem, HCFA is now session, they have really gone the When we finally move home health to anticipating that it will not have PPS extra mile. prospective payment, it is critical that in place until April 1, 2000. Delaying Now, this bill doesn’t give anyone ev- some low-cost providers be in business the automatic 15% reduction in pay- erything that they want. Senators to treat patients who need home care. ments to home health agencies will en- ROTH and MOYNIHAN rightly focused on The Grassley-Breaux bill that we intro- sure that the agencies aren’t punished creating something that could actually duced several months ago tried to level for HCFA’s inability to implement PPS pass this year, and so the bill is a prod- the playing field by bringing the very in a timely manner. uct of compromise. One of the key fea- high cost providers down while raising The goal of this bill is to fix some of tures is that the bill is paid for, so that the reimbursement for low cost pro- the problems created in the BBA. it will not add another burden onto the viders. This reflects what will happen Again, it is certainly only a first step— already-burdened Medicare Part A under prospective payment when all there is still much more that needs to trust fund. The offsets used are fair providers will essentially be paid the be done and I am hopeful that the 106th ones, and should not be controversial. same amount for treating the same Congress will revisit this issue to en- I am familiar with the bill the House kind of patient. We also eliminated the sure that Medicare beneficiaries con- is voting on today. Should both bills be distinction between old and new pro- tinue to have access to this very im- passed, with all due respect to my viders in an attempt to further level portant benefit. House colleagues, I urge them to recede the playing field. To ensure that high I urge my colleagues to support this to the Senate bill in conference. I have cost patients would still have access to bipartisan measure. It may not be ev- worked on this issue a long time, and I home health, the Grassley-Breaux bill erything everyone wants, but it cer- don’t believe this bill can be improved included an outlier policy so that home tainly is better than doing nothing this upon. health agencies would not turn high year and it provides much-needed tem- Mr. President, this bill will not sat- cost patients away. porary relief to home health agencies isfy everyone. It’s a compromise, and The interim payment reform pro- across the country. in fact, it likely will not fully satisfy posal put forward by Senators ROTH Mr. JEFFORD. Mr. President, today, anyone. But it’s the right thing to do, and MOYNIHAN is an important first I am very pleased to join in intro- because it will help to keep some of our step towards fixing IPS and I applaud ducing the Medicare Home Health Fair good home health providers around for the bipartisan approach the Senate Payment Act, legislation that signifi- another year, so they can make sure used in arriving at this proposal. I cantly improves the interim payment our seniors get home care when they think most members would argue that system to home health agencies estab- need it. much more needs to be done and I lished under the Balanced Budget Act Mr. BREAUX. Mr. President, I rise would agree. I am hearing from many of 1997. Over the past eight months, I today in support of the Medicare Home home health agencies in Louisiana that have been working as hard as I know Health Fair Payment Act of 1998. This this bill will only be of marginal help how to find a solution for the crisis is an issue that I have worked on for to the state but that it is important faced by our home health care agencies several months with Senator GRASSLEY that something get done this year. As in Vermont. Our 13 home health agen- and other Members of the Senate and I is the case with most things we do cies are model agencies that provide am pleased that the Senate has ad- around here, particularly in the waning high-quality, comprehensive home dressed this issue before adjourning. hours of this Congress, getting some- health care with a low price tag. How- I am the first to admit that there is thing is better than getting nothing. I ever, under Medicare’s new interim too much fraud, waste, and abuse in am pleased that there is a bipartisan payment system the payments to the Medicare’s home health benefit and commitment by the Senate Finance agencies are so low that Vermont’s there is probably no other state where Committee to revisit this issue next seniors may be denied access to needed the problem is more pronounced than year and take a much more comprehen- home health services.

VerDate Mar 15 2010 00:42 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00075 Fmt 4624 Sfmt 0634 E:\1998SENATE\S10OC8.REC S10OC8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S12346 CONGRESSIONAL RECORD — SENATE October 10, 1998 Under the legislation, the reimburse- Finance Committee. I would have pre- Moreover, the current per-bene- ment from Medicare to home health ferred the approach taken in my own ficiary limits range from a low of $760 agencies will be increased, and the 15% home health bill, which I introduced for one agency to a high of $53,000 at across-the-board cut scheduled for next last April and which has 29 Senate co- another. As such, the system gives a year will be delayed by one year. Adop- sponsors, because it would have done competitive advantage to high-cost tion of this bill will give the Vermont more to level the playing field and pro- agencies over their lower costs neigh- home health agencies needed financial vide more relief to historically cost-ef- bors, since agencies in a particular re- relief until a new prospective payment fective agencies. However, I understand gion may have dramatically different system is in place. that the chairman faced a difficult reimbursement levels regardless of any For the past seven years, the average task of balancing a number of com- differences among their patient popu- Medicare expenditure for home health peting issues, and the bill we are con- lations. And finally, this system may care in Vermont has been the lowest in sidering today is an important first force low-cost agencies to stop accept- the nation. However, rather than being step that will move the process forward ing patients with more serious health rewarded for this cost-effective pro- and provide a measure of relief to those care needs. gram, Vermont has been penalized by cost-effective agencies in every State Mr. President, I realize that we can- the implementation of the current in- that are currently being penalized by not address every home health issue terim payment system. In June, 1998, the formula used to calculate the per- that has been raised this year. Some Vermont’s home health agencies pro- beneficiary limit. matters will have to carry over to the jected that the statewide impact of the America’s home health agencies pro- next Congress, and I fully intend to current interim payment system was a vide invaluable services that have en- work with my colleagues next year on loss of over $4.5 million in Medicare abled a growing number of our most these items. Nonetheless, there are revenues for the first year. This rep- frail and vulnerable Medicare bene- things we can do this year, and I be- resents a loss of over 11% on an annual ficiaries to avoid hospitals and nursing lieve that it is imperative that Con- base of $40 million statewide. homes and stay just where they want gress act now to begin to address these Vermont is a good example of how to be—in their own homes. However, problems. At least one agency in Maine the health care system can work to critics have long pointed out that has closed because the reimbursement provide for high quality care for Medi- Medicare’s historic cost-based payment levels under this system fell so short of care beneficiaries. Home health agen- for home health care has inherent in- its actual operating costs. Other cost- cies are a critical link in the kind of centives for home care agencies to pro- efficient agencies in my State are lay- health system that extends care over a vide more services, which has driven up ing off staff or declining to accept new continuum of options and settings. costs. patients with more serious health con- New technology and advances in med- Therefore, there was widespread sup- ditions. ical practice hospitals to discharge pa- port for the Balanced Budget Act pro- Which brings us back to the central tients earlier. They give persons suf- vision calling for the implementation and most critical issue—the real losers fering with acute or chronic illness the of a prospective payment system for in this situation are our seniors, since opportunity to receive care and live home care. Until then, home health cuts of this magnitude simply cannot their lives in familiar surroundings. agencies are being paid according to a be sustained without ultimately affect- Time and time again, Vermont’s home new ‘‘interim payment system,’’ which ing patient care. health agencies have proven their unfortunately is critically flawed. Mr. President, once again, I com- value by providing quality, cost-effec- As we are all aware, the Health Care mend the chairman of the Finance tive services to these patients. Yet Financing Administration has diverted Committee for his efforts on this dif- time and again, federal policy seems to considerable resources to solving its ficult issue and urge my colleagues to ensure that their good deeds should go Y2K problem so that there will be no join me in supporting this legislation. punished. slowdown of Medicare payments in Mr. BOND. Mr. President, I thank the The Medicare Home Health Fair Pay- 2000. As a result, implementation of the Senator from Delaware, Mr. ROTH, for ment Act is the product of a great deal prospective payment system for home attempting to bring some resolution to of hard work by the Finance Com- health agencies will be delayed, and the home health crisis before the end of mittee and is carefully designed to ease home health agencies will remain on this session and making much needed the burden of home health care agen- IPS far longer than Congress envi- revisions to the Medicare home health cies in the transitional years prior to sioned when it enacted the Balanced interim payment system (IPS). I fully the introduction of a new prospective Budget Act. This makes it all the more support delaying the automatic 15 per- payment system in 2000. The bill in- imperative that we act now to address cent reduction for one year, raising the cludes several strong policy compo- the problems with a system that effec- cost limits to 110 percent of the me- nents, which promote equity and fair- tively rewards the agencies the have dian, and raising payments for new ness among the agencies nationwide. provided the most visits and spent the agencies. However, I still have serious Under the new prospective payment most Medicare dollars, while it penal- reservations about a blend approach system, Vermont and other cost-effec- izes low-cost, more efficient providers. which reshuffles the deck chairs on the tive agencies can look forward to being Home health agencies in the North- Titanic. It is imperative that we restore rewarded rather than penalized for east are among those that have been access to home health care for medi- their high-quality, low-cost com- particularly hard-hit by the formula cally complex patients, and I look for- prehensive medical care to bene- change. As the Wall Street Journal reward to working with my colleagues to ficiaries. cently observed, ‘‘If New England had address this issue in conference. It is my strong hope, that this bill been just a little greedier, its home At this time my distinguished col- will be adopted by the Senate, sup- health industry would be a lot better league from Mississippi, Mr. COCHRAN, ported by the House, and signed into off now . . . Ironically, . . . [the region] and I would like to engage the able law. I have worked closely with is getting clobbered by the system be- Chair of the Senate Finance Com- Vermont’s 13 home health agencies, cause of its tradition of nonprofit committee, Mr. ROTH, in a discussion about Senator LEAHY and the Governor’s Of- munity service and efficiency. the problems that have resulted from fice in developing a solution to the Moreover, there are wide disparities IPS, and further action that the Senate payment crisis. The signing of this bill in payments and no logic to the vari- must take to complete the work begun will mark a victory for our State, and ance in payment levels. The average this year in this important area. it will also reflect a strong nationwide patient cap in the East South Central Mr. President, there is not a single commitment to high-quality, cost-ef- region is almost $2,500 higher than New Member of the Senate or House of Rep- fective home health agencies such as England’s without any evidence that resentatives who has not become pain- those in Vermont. patients in the southern States are fully aware of the serious problems Ms. COLLINS. Mr. President, I rise in sicker or that nurses and other home that have arisen within the home support of the legislation introduced health personnel in this region cost health program over the last year. by the distinguished chairman of the more. These problems stem from enactment

VerDate Mar 15 2010 00:42 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00076 Fmt 4624 Sfmt 0634 E:\1998SENATE\S10OC8.REC S10OC8 mmaher on DSKCGSP4G1 with SOCIALSECURITY October 10, 1998 CONGRESSIONAL RECORD — SENATE S12347 of a temporary payment system that Clearly the program cannot continue year and cannot possibly figure out was recommended to us by the Health under this scenario and continue to whether its breaking even or going Care Financing Administration. The provide quality services to eligible in- broke. While we do not want home fact is that the so-called interim pay- dividuals. Some of my colleagues may health agencies to abuse the system ment system (IPS) was untested, and, wonder how this all came about. Per- through schemes that allow them to as we have found, made such swift and haps the Senator from Mississippi can circumvent the limits by transferring deep cuts in reimbursements, thereby provide some insight into this. patients, we also do not want to penal- hampering the ability of home care Mr. COCHRAN. Mr. President, I thank ize patients and providers from the ap- providers to serve needy patients and my colleague. In addition to HCFA im- propriate management of home care affecting access to care for some of the posing an untested payment system services. Another issue is the elimi- most frail, oldest, and poorest of our with the home health IPS, the scoring nation of the periodic interim payment seniors and disabled. mechanism used by CBO to estimate methodology scheduled for October, The IPS is the worse case of false savings resulting from IPS included a 1999. That termination date was chosen economy that I’ve ever seen. If the el- 2⁄3 behavioral offset. What this means is to coincide with implementation of derly and disabled cannot get care at that CBO presumed that for every $3 prospective payment system, which we home, it’s clear where they will go for saved under IPS, agencies would find now know, will not be in operation at care. Emergency room costs will rise, some way, through expanding the num- that stage. This Congress should recog- patients will go into more expensive ber of beneficiaries they serve, to make nize the need to continue that system institutionalized care, or patients sim- up $2 of every $3 lost under IPS. What until such time as a Prospective Pay- ply won’t get any care at all. In addi- has become clear, as was indicated by ment System is in place. tion to increasing Medicare costs, the Senator from Missouri, CBO’s be- Mr. COCHRAN. Mr. President, I too am there will be an explosion in Federal havioral assumptions about agencies very concerned about the delay in the and State Medicaid budgets. I believe increasing the number of beneficiaries development and implementation of a the Senator from Mississippi would served have not come to pass. Instead, PPS system. It is the only clear solu- agree that the problems brought about we are seeing a near dismantling of the tion to deal with those complex pa- by IPS are significant. home care program as the result of tients who are having increasing dif- Mr. COCHRAN. Mr. President, the IPS. ficulty in gaining access to home care statements made by the Senator from We have already seen the devastating services. If we cannot have PPS soon, Missouri are, I’m sad to say, quite true. effects of the interim payment system we must find a way to better reimburse Most recent official figures from 29 in my state of Mississippi. While I ap- agencies which care for these high cost state health departments indicate that plaud the Senate for its efforts to re- patients. Home health agencies in Mis- close to 800 agencies have closed in form the interim payment system, we sissippi report to me that this is one of those states. This number represents must commit ourselves to continuing the most important problems that parent agencies; other data from the this work as soon as the Senate recon- must be addressed. At the same time, states indicate that the number of venes. I am particularly concerned that putting together a PPS program will agencies and branches that have closed we must address the problems that will do no good if we destroy the foundation is much higher. We also know that be created by the automatic 15% reduc- of our home health services delivery there are many more agencies on the tion in payment limits which we have system. As the result of IPS, I am told brink of closing if some relief from IPS agreed to delay one year. It took this that home health agencies across the is not provided soon. If the current rate distinguished body that long to reach country will find some time in the mid- of closures continues, we could easily the temporary solutions which we have dle of next year that they have likely see a loss of 2,000 more home health before us today and we cannot put off been over paid by the Medicare pro- agencies by October 1, 1999. deliberations on this additional cut Agency closing are resulting in sig- until the last moment. Prudence dic- gram even though they delivered ap- nificant beneficiary care access prob- tates that we find ways to insure that propriate services to patients at a rea- lems. In fact, a recent GAO study found any additional cuts in reimbursement sonable cost. This Congress must find a that two-thirds of discharge planners not adversely affect efficient providers way to deal with that pending crisis in and more than a third of the aging or- nor burden patients in their access to order to protect those home health ganizations surveyed reported having necessary home care services. agencies that met patient’s needs yet had difficulty obtaining home health Mr. BOND. Thank you for those in- still incurred costs beyond the arbi- care for Medicare patients in the last sights Senator COCHRAN. I fully agree trary limits which were developed year, especially those who need mul- that this must be a priority of the Sen- under IPS. tiple weekly visits over an extended pe- ate to address as soon as possible. Mr. ROTH. Senator BOND and Senator riod of time. Matters will only get There are additional issues which also COCHRAN, I thank you for your leader- worse as agencies become more and need to be addressed at that time, par- ship within the Senate of these crucial more limited in their ability to provide ticularly how to reimburse those agen- issues affecting Medicare beneficiaries needed services. In fact, in testimony cies which serve our nation’s most across the country. Through your as- before the Ways and Means Committee medically complex patients. We have a sistance we hope to ensure that home in August, Ms. Gail Wilensky, former moral obligation to ensure that our na- health care is readily available where head of the Health Care Financing Ad- tion’s seniors and disabled are provided the needs arise. We will continue to ex- ministration, warned that, if the Con- the quality and comfortable care they plore fully those issues which you have gress waits for proof that a crisis is oc- deserve. In addition, we must look at raised. We will also draw on the re- curring in home care before it acts, it provisions which require that the pay- sources of Medpac, HCFA, the GAO, will be too late. She also indicated that ment limits are prorated where a pa- and representatives from home care pa- more money was taken out of home tient is served by more than one agen- tients and providers to determine care than the Congress had expected cy. It is my understanding that the whether more work is required. Home when IPS was designed and then imple- Health Care Financing Administration health care is a crucial part of our mented by HCFA. is not capable of administering this health care system and the elderly and Mr. BOND. Mr. President, I might provision, yet it is having impact on disabled protected by the Medicare pro- add at this time that despite the fact patient’s access to care. The problem gram deserve the attention of this Con- that HCFA is responsible for this dra- centers around the inability of a home gress to insure that we not disrupt this conian system, HCFA has only offered health agency to properly manage its important benefit without a full and technical assistance to address this cri- business when it does not know the ul- accurate understanding of the con- sis. HCFA must beheld accountable for timate payment limitation which it sequences. Once again, I thank Senator this insane and inequitable system and must budget. The home health agency BOND and Senator COCHRAN for the face up to the fact that its system is has no way of knowing whether a pa- guidance that they have offered to this wreaking havoc throughout our coun- tient has received services from an- body in addressing these important try. other home health agency during the issues.

VerDate Mar 15 2010 00:42 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00077 Fmt 4624 Sfmt 0634 E:\1998SENATE\S10OC8.REC S10OC8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S12348 CONGRESSIONAL RECORD — SENATE October 10, 1998 Mr. CONRAD. Mr. President, I want come up with a system that better ad- the needs and requests of my Indiana to comment on the home health pro- dresses the needs of North Dakota constituents are met with friendly and posal that is before us and ask the home health agencies. effective service. They are the front Chairman of the Finance Committee to Mr. CONRAD. I thank the Chairman. line, they are my eyes and ears in Indi- clarify his intentions with regard to With that assurance, I will drop my ob- ana, and without their hard work, it addressing this issue in the next Con- jection and let this legislation move would be impossible for me to serve ef- gress. forward. fectively. The current home health interim f As the distinguished senior Senator payment system isn’t working. Under from Indiana pointed out yesterday, we the current system, those agencies ADDITIONAL COSPONSORS have a rather unique operation back in that abused the system and milked S. 2130 Indiana. The senior Senator and I share Medicare for every possible reimburse- At the request of Mr. GRAMS, the a combined staff. They have served the ment dollar are rewarded with gen- name of the Senator from Montana state well. I would like to take a mo- erous cost limits. However, North Da- (Mr. BURNS) was added as a cosponsor ment now to acknowledge my Indiana kota agencies that did not abuse the of S. 2130, a bill to amend the Internal staff. Kathy Blane, Susan Brouillette, system, that worked hard to keep their Revenue Code of 1986 to provide addi- Sarah Dorste, Mark Doude, James Gar- costs down, are penalized with unreal- tional retirement savings opportunities rett, Amy Gaston, Michelle Mayer, istically low limits. Not only is this for small employers, including self-em- Kevin Paicely, Lane Ralph, Karen terribly unfair, it creates a terrible in- ployed individuals. Seacat, Libby Sims, Cory Shaffer, An- centive for efficient, low-cost agencies SENATE JOINT RESOLUTION 56 gela Weston, Mike Duckworth, Barbara to go out of business and transfer their Keerl, David Graham, Pat McClain, At the request of Mr. GRASSLEY, the employees and their customers to names of the Senator from Oklahoma Phil Shaull, Amy Hany, Tim Sanders, agencies that have ripped off the sys- and Barb Franz. I believe I have in- (Mr. NICKLES) and the Senator from tem. cluded everyone. If I have not, let them This system clearly penalizes North Alabama (Mr. SESSIONS) were added as cosponsors of Senate Joint Resolution know my appreciation. Dakota home health agencies and the As I have said, the distinguished sen- beneficiaries who rely on their serv- 56, a joint resolution expressing the sense of Congress in support of the ex- ior Senator and I have shared staff, and ices. The median per beneficiary cost so many will continue to work for the limit for North Dakota home health isting Federal legal process for determining the safety and efficacy of drugs, citizens of Indiana. Though some will agencies is the second lowest in the go on to other endeavors, that same country—a mere $2150 per year. In fact, including marijuana and other Sched- ule I drugs, for medicinal use. sense of responsibility and public serv- the agency in North Dakota with the ice that has motivated them to date, I SENATE CONCURRENT RESOLUTION 108 highest limit has a cap that is below am sure will drive them to continue to the lowest limit in the state of Mis- At the request of Mr. DORGAN, the play a positive role in the lives of Hoo- sissippi. There is no rational basis for name of the Senator from Minnesota siers for years to come. this sort of inequity. (Mr. WELLSTONE) was added as a co- I thank them and salute them.∑ Unfortunately, the proposal before us sponsor of Senate Concurrent Resolu- today takes only the smallest of steps tion 108, a concurrent resolution recog- f toward correcting this inequity and nizing the 50th anniversary of the Na- TRIBUTE TO JUDGE JAN SMITH leaves in place too many of the current tional Heart, Lung, and Blood Insti- incentives that favor high cost, waste- tute, and for other purposes. ∑ Mr. REID. Mr. President, I rise today ful home health agencies. I do not see f to pay tribute to an outstanding Ne- how I can, in good conscience, go back vadan, my friend and former colleague, to North Dakota home health agencies ADDITIONAL STATEMENTS Judge Jan Smith. At the age of sev- and tell them that we can only lift enty-one, after years of service as Jus- their payments rates 2 or 3 percent tice of the Peace for the Jean-Good TRIBUTE TO INDIANA STAFF when agencies in other parts of the Springs community, Judge Smith will country will continue to have payment ∑ Mr. COATS. Mr. President, I rise retire from the bench next year. I want limits 3 and 4 times as high as theirs. today to pay tribute to a group of peo- to take this opportunity pay tribute to It is not fair. It is not good policy. It is ple that have been of tremendous serv- Jan for her efforts to improve the lives not good enough. For that reason, I ice to me during my tenure as a United of so many Americans, because her ac- will feel constrained to object to this States Senator. That group is my Indi- complishments have helped us all. legislation unless I can be assured by ana staff. I have been fortunate enough to be a the Chairman of the Finance Com- As I have so often said, whatever suc- first hand witness to some of Jan’s in- mittee that there will be an oppor- cess I have achieved during my service credible achievements. I have watched tunity to do better next year. as a Senator is greatly attributable to her rise from legal aide and working Mr. ROTH. Mr. President, I thank the the tireless work of my staff. Their mother in the early nineteen sixties to gentleman from North Dakota for his hours are long, and they toil in relative become one of Nevada’s most influen- comments. He is right; this change is obscurity. However, they do so for the tial judicial officers. only a small step. It does not ‘‘fix’’ the same reason that we as Senator make After toiling away as a legal sec- interim payment system. However, in the sacrifice. They work so hard be- retary for a District Attorney and a the time remaining this year, this is cause they believe in this great nation county judge, Jan became deeply in- the best we can do. It takes an impor- we serve, and the ideals that are woven volved with a variety of grass roots tant step toward making the system into the very fiber of our existence as causes. She was one of the first women more fair, and it reduces the perverse Americans. in the state to be an advocate on behalf incentives in the current system. In ad- So much of our work here in the Sen- of the environment. In the city of Hen- dition, it recognizes that the Prospec- ate focuses on legislative activity. For derson, she canvassed neighborhoods tive Payment System for home health that is the stuff of headlines and news and city hall to prevent industry from will be delayed, so it delays for one stories. However, it is hardly a reflec- inflicting permanent damage to the en- year the 15% cut in payments that is tion of one of the most fundamental re- vironment. As a mother of six, she was currently scheduled to go into effect on sponsibilities of a United States Sen- insightful enough to take action so October 1, 1999. ator, and that is providing caring and that her children could grow up with I want to assure my colleague from responsive service to the citizens of our an ample supply of clean air and water. North Dakota, however, that I fully in- state, the people who’s trust we are Judge Smith was also a champion for tend to revisit the home health issue charged with protecting and serving. the underprivileged. She worked tire- next year. At that time, I pledge to And, Mr. President, it is those people lessly to create opportunities for the work with him and other members of serving in my State and regional of- poor and disadvantage in Nevada. Like the Finance Committee to see if we can fices that work so hard to insure that many of her contemporaries, she

VerDate Mar 15 2010 00:42 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00078 Fmt 4624 Sfmt 0634 E:\1998SENATE\S10OC8.REC S10OC8 mmaher on DSKCGSP4G1 with SOCIALSECURITY October 10, 1998 CONGRESSIONAL RECORD — SENATE S12349 marched on behalf of women and chil- the services provided through the Older ing Japan’s ports. The FMC, under Mr. dren who needed a ‘‘hand-up’’, rather Americans Act. In addition, the organi- Creel’s guidance, met these problems than a donation or handout. zations in Arkansas that have received head-on and he was instrumental in When I served as Nevada’s Lt. Gov- funding through the Act have done an bringing the two governments to the ernor, I began working closely with incredible job in reaching out to our bargaining table. The bilateral agree- Jan when she was chosen to run the seniors. ment that resulted paves the way for Southern Nevada office of then Gov- While the Older Americans Act ex- far-reaching changes that can remove ernor Mike O’Callahan. Savvy and de- pired in 1995, its programs have wide- these unfair barriers to trade. The termined, she made an impression on spread support, which has resulted in progress made to date has occurred in everyone she worked with throughout continued funding. Nonetheless, au- large measure due to the Commission’s those six years. Much of her success on thorization is critical for the long-term firm, results-oriented approach. I urge the job came from her staunch work stability of these programs and for the him to continue to keep the Japanese ethic and strong ties to both her family peace of mind of senior citizens. the honest, and to perform their agreed and the community. McCain bill renews the act, without upon obligations. The people of Nevada were truly for- any changes, for a period of 3 years. Hal Creel also has led the Commis- tunate to have Judge Smith come out Let me say that, as with any reauthor- sion in its efforts to resolve unfavor- of semi retirement to accept an ap- ization, I strongly believe in the need able trading conditions with the Peo- pointment as a Justice of the Peace for for congressional hearings to examine ples Republic of China and Brazil. the Jean-Good Springs district. She the programs contained within the act These trades pose differing problems, single-handedly reorganized the court to ensure that they are working well, but circumstances that nonetheless reso that it eventually became a model of efficiently serving the needs of seniors, strict U.S. companies or render their fairness and efficiency. She has subse- and that any appropriate adjustments business dealings unnecessarily dif- quently been reelected with over- in funding are made. Regrettably, the ficult or simply inefficient. whelming community support. Senate Labor and Human Resource Hal Creel is widely respected by all Judge Smith is one of the unsung he- Committee, on which I serve, has not sectors of the industry as an involved, roes of the American justice system. taken action on any reauthorization knowledgeable Chairman who can be Like many of our nation’s Justice of legislation this year. Until the com- trusted to make impartial decisions the Peace Officers, she does not typi- mittee does so, and as an indication of based on all relevant factors. This has cally preside over big dollar, high my very strong support for the pro- been evidenced by the objective, in- drama cases. However, those like Judge grams contained in the Older American formed decisions he renders in formal Smith are the representatives of our Act, I am cosponsoring the McCain bill. proceedings, his voting record on im- legal system most likely to come in The Older American Act has important agency matters, and the even- contact with everyday Americans. Pro- proved the quality of life for so many handed enforcement program adminis- fessionals like Jan do more to preside of our Nation’s elderly, and it will con- tered by the Commission. As Chairman over basic public safety issues because tinue to provide vital services as the of the FMC, Hal Creel has worked hard they handle the difficult events that aging population grows. I sincerely to curb harmful practices and create are all too common in communities hope that the Senate will act on legis- equitable trading conditions for the en- across the country—drunk driving and lation to reauthorize this important tire industry. He takes a personal domestic violence. Essentially, Jan’s act soon.∑ stake in these matters and works hard career has required her or exercise (At the request of Mr. DASCHLE, the to obtain compliance with the laws judgement and make tough decisions following statement was ordered to be passed by this Congress. But those who that have lasting impact. printed in the RECORD.) willfully violate the law or inten- Judge Jan Smith truly believes in f tionally disregard the Nation’s ocean the law, as a fellow officer of the court shipping policies as contained in the FEDERAL MARITIME COMMISSION and United States Senator, I have re- Shipping Act are dealt with appro- NOMINATIONS lied upon on Judge Smith’s trademark priately. intelligence and honesty, as well as her ∑ Mr. HOLLINGS. Mr. President, I These are turbulent times in the ability to astutely assess the character would like to take a moment to con- liner shipping industry, times that call and behavior of the many Nevadans gratulate two nominees, Mr. Hal Creel for effective and respected leadership who visit her court. and Mr. John Moran, upon their con- from our Nation’s regulatory body. Mr. Much of my admiration for Judge firmation to be Federal Maritime Com- Creel provides that leadership now, and Smith stems from her enduring commissioners. I am certain will continue to do so as mitment to people of the Silver State. Hal Creel, a native of South Carolina the industry enters the new environ- Her values are reflected not only in the and my former Senior Counsel on the ment that will result from the Ocean way she lives her life, but in the many Maritime Subcommittee, has been a Shipping Reform Act of 1998 passed by organizations she has served over the Federal Maritime Commissioner for this body last week. past thirty years. Judge Smith’s life- four years. He has served the last two I am proud of the accomplishments time of achievement is truly an inspi- and a half years as the agency’s Chair- and fine work Hal has done at the ration, and she serves as an incredible man. As Chairman, he has dem- FMC. I am also proud that he is a na- role model for judicial prudence, legal onstrated a wide-ranging knowledge of tive South Carolinian. He certainly has acumen, and personal integrity.∑ the maritime industry and an out- continued the fine tradition and excel- f standing ability to oversee industry ac- lence he has established as a staffer tivities. Our Nation is extremely fortu- and senior counsel for the Senate Com- REAUTHORIZATION OF THE OLDER nate to have such a dedicated indi- merce Committee. His reappointment AMERICANS ACT vidual at the helm of this important is well deserved. ∑ Mr. HUTCHINSON. Mr. President, on government body. I also wish to convey my support for Friday, October 10th, I became a co- Mr. Creel and the Federal Maritime John Moran to become a Commissioner sponsor of legislation introduced by Commission are responsible for over- at the FMC. John also is a former Com- Senator MCCAIN that would reauthor- seeing all international liner shipping merce Committee counsel who served ize the Older Americans Act. This Act, in the U.S.—over $500 billion in trade. all members of that Committee with established in 1965, established a series His efforts in the controversy sur- distinction. John and Hal worked to- of programs to benefit older Ameri- rounding Japan’s restrictive port prac- gether at the Committee on a bipar- cans. Services provided include nutri- tices come immediately to mind. tisan basis, slugging through tough tion, transportation, nursing home The Government of Japan for many issues and serving all of the Members ombudsmanship, and other senior’s years has orchestrated a system that well. rights programs. Needless to say, Ar- impedes open trade, unjustly favors For my Senate colleagues who do not kansas, which has over 200,000 senior Japanese companies, and results in tre- know Mr. Moran, his only fault is that citizens, has benefitted greatly from mendous inefficiencies for anyone serv- he is not from South Carolina. He has

VerDate Mar 15 2010 00:42 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00079 Fmt 4624 Sfmt 0634 E:\1998SENATE\S10OC8.REC S10OC8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S12350 CONGRESSIONAL RECORD — SENATE October 10, 1998 demonstrated his abilities and intellect stage for endless litigation, the Presi- The Republican plan is the right time and time again. He is well suited dent’s bill could dramatically raise the choice for America. It would safeguard to be a Federal Maritime Commis- price of premiums—barring people 48 million people out of the 124 million sioner. Currently, John works rep- from purchasing insurance. The Presi- now covered by the 1974 Employee Re- resenting the American Waterways Op- dent would be well advised to call his tirement Income Security Act or erators, as their Vice President for leg- legislation the ‘‘Patient’s Bill,’’ be- ERISA by requiring that group islative affairs. John also has an out- cause a costly bill is exactly what healthcare plans provide enrollees standing reputation within the mari- Americans would receive. That’s the with: access to emergency medical time and transportation industry sec- bottom line for American families—the care; point-of-service coverage; access tors. cost. We all want quality. There isn’t a to ob-gyn care; access to pediatric care; I congratulate these two deserving member in Congress who doesn’t want continuity of care; and, a ban on pa- individuals, who have been appointed quality. But if Americans are expected tient/doctor ‘‘gag’’ rules. ERISA plans, to the agency which plays such a crit- to pay up to 23 percent higher pre- whether fully-insured or self-insured, ical role in international trade.∑ miums to get it, they’ll most often would also be required to provide en- have to go without insurance. It’s that rollees with information about plans f simple. and providers such as options, restric- THE REPUBLICAN PATIENTS’ BILL I remember the reaction Wyoming tions and descriptions. OF RIGHTS ACT residents had to the 1993 ‘‘Clinton The Republican Patients’ Bill of ∑ Mr. ENZI. Mr. President, I rise to Care’’ plan. I was a State Senator liv- Rights would also allow a patient to speak in strong support of S. 2330, the ing in Gillette, Wyoming at the time. I hold their health plan accountable. The Patients’ Bill of Rights Act. As an recall how the President and First President’s bill, however, would allow a original cosponsor, I’m confident that Lady rode a bus across America—pro- patient to sue their own health plan this legislation is the logical step to moting nationalized healthcare. I also and tie up state courts with litigation ensure Americans accessible and af- remember the detour they took when for months or years. The only people fordable healthcare. they arrived at the Wyoming border. that benefit from this would be trial On January 13, 1998, the Majority Instead of entering my home state, lawyers. The patient, however, would Leader created the Republican Health they chose a more populated route be lucky to get a decision about their Care Task Force to begin pouring the through Colorado. That was an unfor- plan before their ailment advanced or foundation for a comprehensive piece tunate choice. They missed an impor- even took their life. A big settlement of legislation that would enhance the tant healthcare point. Had they driven doesn’t do much good if you got it, be- quality of care without dismantling ac- all 400 miles across southern Wyoming, cause you died while the trial lawyers they would have seen for themselves fiddled with the facts. Folks aren’t in- cess and affordability. For the last why one-size-fits-all legislation doesn’t terested in suing their health plan. seven months, the task force met every work in rural, under-served states. They watch enough court-TV shows to Thursday—and other times as needed— Affordable and accessible care is THE know how expensive that process is and with scores of stakeholders prior to life-line for Wyoming residents. I live how long it takes to get a decision writing this bill. Such thorough steps in a city of 22,000 people. It’s 145 miles made. This isn’t L.A. Law—it’s reality. in writing a bill have clearly paid off. to another town of equal or greater The Republican Patients’ Bill of Rights We now have legislation that would size. Many of my constituents have to avoids all this by incorporating an in- provide patients’ rights and quality drive up to 125 miles one-way just to ternal appeals process that doesn’t ex- healthcare without nationalized, receive basic care. More importantly, ceed 72 hours. If not satisfied, an en- bureaucratized, budget-busting, one- though, is the difficulty we face entic- rollee would be able to access an exter- size-fits-all mandates. ing doctors and practitioners to live nal review by independent medical ex- In 1993, President and Mrs. Clinton and practice medicine in Wyoming. I’m perts. Getting quick decisions saves launched an aggressive campaign to very proud of Wyoming’s health care lives. nationalize the delivery of healthcare professionals. They practice with their The President has repeatedly said under the guise of modest reform. The hearts, not their wallets. that the Republican Patients’ Bill of sales pitch was backed with scores of In a rural, under-served state like Rights should apply to all health insur- anecdotes illustrated from Presidential Wyoming, only three managed care ance plans. Such claims are no dif- podiums across the country. The sto- plans are available and that covers just ferent than those made by the Presi- ries pulled on the heartstrings of all six counties. Once again, this is partly dent back in 1993. He wants national- Americans and were intentionally due to my state’s small population. ized healthcare—plain and simple. aimed at injecting fear and paranoia Managed care plans generally profit There is a reason the Republican bill into all persons covered or not covered from high enrollment, and as a result, only amends ERISA. It’s because the by private health insurance. the majority of plans in Wyoming are 124 million ERISA enrollees are not I am quick to ask my constituents traditional indemnity plans—com- regulated by the states. The states, by interested in the President’s bill to monly known as fee-for-service. Some the way, have been in the business of carefully examine the fine print. It’s no folks might wonder why I am so con- regulating the health insurance indus- surprise to me that most of them al- cerned about the President’s try far longer than Congress or any ready have. The American people healthcare package, especially since President was beating up on managed haven’t forgotten the last time this it’s geared toward managed care. I’m care. Administration tried to slip national- concerned because a number of Wyo- The President wants all regulatory ized healthcare past their noses. Folks ming insurers offer managed care plans decisions about a person’s health insur- in this town may be surprised to learn elsewhere. Any premium hike spurred ance plan to be made from Wash- that the American people aren’t a by mandates in the Presidents’ bill ington—nationalized care. The reason bunch of pinheads. Anyone can put lip- could be distributed across the board— this won’t work is that it fails to take stick on a pig, give it a fancy Holly- causing increases in the fee-for-service into account the unique type of wood title, and hope for an election- premiums in Wyoming. Simply put, my healthcare provided in states like Wyo- year slam dunk. Expecting the public constituents could easily end up paying ming. While serving in the Wyoming to close its eyes and kiss that pig, how- for services they’ll never get! 40 per- Legislature for 10 years, I gained tre- ever, is an entirely different matter. cent of my constituents are self-in- mendous respect for our state insur- The American people understand sured—meaning they pay for their own ance commissioner’s ability to admin- what’s going on here. They know full health insurance out of their own pock- ister quality guidelines and insurance well that higher premiums mean no ets. Expecting my constituents to pay regulations that cater to our state. coverage. Why? Because affordable ac- more poses a clear and potential threat State regulation and understanding is cess to healthcare is an even higher to exclude them from health insurance absolutely, unequivocally essential. I priority than quality. If it isn’t afford- coverage. The urban areas get the firmly believe that decisions which im- able, it doesn’t exist! By issuing one- care—we get the cost. Added cost— pact my constituents’ health insurance size-fits-all mandates and setting the that’s it—that’s all. should continue

VerDate Mar 15 2010 00:42 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00080 Fmt 4624 Sfmt 0634 E:\1998SENATE\S10OC8.REC S10OC8 mmaher on DSKCGSP4G1 with SOCIALSECURITY October 10, 1998 CONGRESSIONAL RECORD — SENATE S12351 to be made in Cheyenne—not Wash- While the President’s bill has been diting Federal assistance to the State ington. pitched as being essential to enhancing of Florida. Congress has an obligation to ensure the quality of care Americans receive, Mr. President, throughout 1998, I such quality services to the 124 million I hope that my colleagues will care- have come to the Senate floor to de- ERISA enrollees whose plans are cur- fully evaluate the impact that any na- scribe the destruction and misery that rently absent these protections. In tionalized, bureaucratized, budget- Florida has experienced as a direct re- doing so, however, the Republican bill busting, one-size-fits-all bill would sult of natural disasters. This year, stays within its jurisdictional bound- have on our nation’s healthcare sys- Florida has been subjected to a series aries and doesn’t trample over states’ tem. As I have encouraged my con- of unprecedented natural disasters. rights. As a result, Americans can gain stituents to read the fine print, I ask Even for a state that is experienced in protections whether they are insured my colleagues to consider how the dealing with such disasters, Floridians under a state, ERISA, or Medicare reg- President’s legislation impacts you and have been tested again and again by ulated plan. I believe that this ap- your home state. Rural states deserve what may be one of the worst years in proach is rational and fair. a voice, too. Only the Republican Pa- Florida meteorological history. In late The Republican Patients’ Bill of tients’ Bill of Rights Act would give January and early February—in the Rights would provide individual rights them that voice.∑ midst of our State’s dry season—sev- with respect to a person’s own, per- f eral Northern Florida counties were sonal health information. Access to deluged by massive floods. Not long personal medical records is a delicate HURRICANE GEORGES AND THE after, parts of Central Florida were matter. Provisions, however, are in- DISASTER MITIGATION ACT OF devastated by thunderstorms and tor- cluded to address inspection and copy- 1998 nadoes that are more typical in the ing of a person’s medical information. ∑ GRAHAM. Mr. President, on Sep- summer months. Beginning in May and Safeguards and enforcement language tember 30th, with my colleagues Sen- ending in late July, a deadly combina- has also been added to guarantee con- ator MACK and Florida Governor tion of intense heat and prolonged fidentiality. In relation to this lan- Lawton Chiles, I participated in a heli- drought sparked more than 2,000 forest guage, group health plans and health copter tour of Florida’s Panhandle, insurance issuers in both the group and fires in Florida’s 67 counties. Finally, where once again, Mother Nature has over the next several weeks, Florida individual market would be prohibited subjected Florida’s citizens to her from collecting or using predictive ge- will begin the long and painful process wrath. After first devastating the Flor- netic information about a patient with of recovery from the widespread dam- ida Keys, Hurricane Georges moved the intention of denying health insur- age that has been caused by Hurricane northward and severely impacted the ance coverage or setting premium Georges. Panhandle, producing rainfall in excess I ask that this September 30 article rates. The Republican plan would establish of 2 feet in some areas. from the Miami Herald—which summa- In the Florida Keys, Georges dam- the Agency for Healthcare Quality Re- rizes Florida’s 6 Presidential disaster aged over 1,500 homes destroying or search. This is not a new federal agen- declarations in more detail—be printed causing major damage to approxi- cy, but rather a new name for the cur- in the RECORD. mately 640 residences. Initial estimates rent Agency for Health Care Policy and The article follows: Research within the Department of indicate that Georges caused over $250 FLORIDA GET FEDERAL AID A RECORD SIX Health and Human Services. This agen- million in insured damage in the Keys, TIMES cy would be modernized to improve and there are millions more in unin- (By Tom Fiedler) healthcare quality throughout Amer- sured damages. Many residents in the For Floridians, this has been a banner year ica. The agency would not mandate a lower Keys have only recently had of hell and high water. President Clinton their power restored, and Federal, said so. national definition of quality, but it Even before Hurricane Georges slapped the would provide information to patients State, local, and voluntary agencies provided food, water, and ice for more Keys unsilly, then dumped tons of fresh rain regarding the quality of care people re- on an already sodden Panhandle, Florida had ceive, allow physicians to compare than a week as the Keys finally established in 1998 a new—although dubi- their quality outcomes with their emerged from this emergency situa- ous—record: recipient of the most presi- peers, and enable employers and indi- tion. dential disaster declarations in a single year. viduals to make prudent purchases Unfortunately—as I was able to view ‘‘It’s been a very hard year,’’ said Joseph Myers, state director of emergency manage- based on quality. firsthand—Georges path of destruction did not end in the Keys. Even in its ment, who on Tuesday was into his seventh The Senate Labor Committee held a straight day of working around the clock number of hearings in relation to wom- weakened state, Georges caused extensive flooding and isolated tornadoes monitoring the latest disaster. ‘‘But that’s en’s health research and prevention. As what we get paid to do.’’ a result, the Republican Patients’ Bill throughout the Panhandle. At least 20 He would be entitled to wonder if that of Rights includes a number of impor- major roads were closed or partially could possibly be pay enough, at least this tant provisions that represent women’s closed, and evacuations continued for year. health. These provisions will clearly days in many low-lying areas. During Like home-run sluggers Mark McGwire and benefit the promotion of basic and clin- my visit to the area, 14 shelters re- Sammy Sosa, Florida established its new mained open, providing safe harbor for record with style, shattering the previous ical research for osteoporosis, breast marks by more than a couple. and ovarian cancer, the effects of aging at least 400 Floridians who had been Since New Year’s Day, which Myers spent and other women’s health issues. forced from their homes. monitoring a chain of tornadoes ripping Finally, the Republican Patients’ As a result of this hurricane, the their way across the central peninsula, caus- Bill of Rights broadens access to cov- President issued an emergency declara- ing at least $24 million in damage to crops erage by removing the 750,000 cap on tion for 33 Florida counties, in order to and homes. President Clinton has declared at medical savings accounts (MSA’s). provide immediate Federal assistance least parts of Florida to be federal disaster MSA’s are a success and should be to protect the lives and property of af- areas six times. fected residents. On September 28, the That topped the previous records of three made available to anyone who wishes in 1992—the year that included the mother of to control their own healthcare costs. President issued a major disaster dec- all disaster declarations. Hurricane An- Moreover, persons who pay for their laration for Monroe County, which au- drew—and 1995, which featured Hurricanes own health insurance could deduct 100 thorizes Federal disaster recovery as- Erin and Opal, both concentrating their fury percent of the costs if the Republican sistance for local governments and on the upper Gulf Coast. plan is enacted. This would have a dra- citizens in the Florida Keys. As of To qualify for a presidential disaster dec- matic impact on folks from Wyoming. today, 16 counties in and around the laration, the amount of damage must be be- These provisions would, without a Panhandle have been added to this dec- yond the ability of state and local government to assist, either because of the doubt, pave the way for quality laration, and I want to acknowledge amounts of money involved or the types of healthcare to millions of Americans the outstanding efforts of both the assistance needed. without dismantling access and afford- President and the Federal Emergency When the president issues a declaration, it ability. Management Agency (FEMA) in expe- makes available federal money to reimburse

VerDate Mar 15 2010 00:42 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00081 Fmt 4624 Sfmt 0634 E:\1998SENATE\S10OC8.REC S10OC8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S12352 CONGRESSIONAL RECORD — SENATE October 10, 1998 the state, and local governments for the im- produce fires, but we thought they would cycle, the legislation places its pri- mediate costs of meeting the emergency— come later.’’ mary emphasis on comprehensive pre- such as in providing police and fire services, June was the driest month in Florida’s his- disaster mitigation. This bill will au- tory. The underbrush became tinder. maintaining shelters or in restoring vital thorize a five-year pre-disaster mitiga- services. On June 6, the anniversary of D-Day, a It also activates several federal programs major fire flared in Flagler County between tion program, funded at $35 million per to aid in a community’s long-term recovery. Daytona Beach and St. Augustine. It raged year, to be administered by Federal That array includes unemployment assist- for 48 days. President Clinton and Vice Presi- Emergency Management Agency, or ance to those whose jobs may have been lost dent Al Gore were among those who came to FEMA. The pre-disaster mitigation or interrupted because of the disaster; mort- inspect the disaster. Fire crews from around program will change the focus of our gage assistance; low-interest loans to help the nation came to fight it. efforts, at all levels of government, to ‘‘We ended up getting a major disaster dec- businesses and farmers get back on their preventative—rather than responsive— feet; money for governments to rebuild high- laration and 15 fire suppression grants to pay ways or restore other services—including re- for the firefighting,’’ the first time Florida actions in planning for disasters. Such placing lost tax revenues from damaged busi- had ever received such compensation, Myers a change in ideology is critical to re- nesses; and money that can be used to avert said. ducing the short- and long-term costs future disasters, such as constructing dikes Florida’s cost of fighting the fires alone hit of natural disasters. It will encourage against floods or beach dunes against hurri- $156 million. both the public and the private sector, canes. ∑ Mr. BUMPERS. Mr. President, my as well as individual citizens, to take VARIETY OF DISASTERS experiences with disasters this year—in responsibility for the threats they face What distinguishes 1998 from previous addition to the unforgettable destruc- by adopting the concept of disaster years is the variety of disasters that has be- tion of Hurricane Andrew in 1992—have mitigation into their everyday lives. fallen the state. Besides hurricanes, which motivated me to re-evaluate the poli- Just like energy conservation, recy- can destroy people and property through cies and programs that are imple- cling, and the widespread use of seat high water and wind, this year’s declarations mented to ease the pain and economic belts, disaster mitigation should behave included several for killer tornadoes, loss caused by disasters. First, we must one for massive flooding and—most dramatic come a concept that all citizens incor- of all—one for infernal fires that raged for recognize that we cannot prevent se- porate into their day-to-day existence. vere weather events. In fact, it seems nearly two months over an area that at one Since 1993, under the leadership of that as we approach the millennium, point stretched nearly from Tallahassee to Director James Lee Witt, FEMA has the Nation is experiencing severe Miami. truly changed its way of doing busi- Missing only were the biblical swarms of weather more frequently—and more in- ness. In the past five years, FEMA has locusts and the medieval bubonic plague. tensely—than ever before. Second, as become more responsive to disaster Myers said his personal disaster calendar our population grows, our coastal and began last Christmas, when he was sum- victims and State and local govern- riverfront communities have greatly moned to the state’s emergency-manage- ments, and has ‘‘reinvented’’ itself by expanded, placing an even higher num- ment headquarters to monitor a winter choosing to focus its energy on miti- ber of citizens at risk from floods and storm exploding out of the Gulf and ham- gating, preparing for, responding to, mering counties in Central Florida. the hurricanes. Finally, expanded require- and recovering from the effects of nat- storm—considered the shock troops of El ments for housing and residential ural hazards. FEMA has already taken Nin˜ o—spun off dozens of tornadoes, washed structures have increased both the an important first step in advocating out hundreds of homes and virtually ruined number and value of property develop- pre-disaster mitigation by establishing tomato and strawberry crops that were rip- ments in high-risk areas. ening. Its cost: about $24 million to tax- ‘‘Project Impact,’’ their new mitiga- Taken together, these facts clearly payers alone, not counting what insurance tion initiative, in local communities demonstrate that we will continue to companies paid to individuals. throughout the nation. I am proud to experience losses from natural disaster. TORNADOES IN MIAMI say that Deerfield Beach, Florida, was Therefore, we must act now to limit Holidays seemed as magnets to these the first community to be chosen as a these inevitable losses through a storms. On Groundhog Day, another winter participant in Project Impact. By au- proactive, nationwide loss prevention storm rumbled out of the Gulf to cut across thorizing the conduct of Project Im- the lower peninsula. This one triggered tor- and mitigation initiative. We cannot pact for five years in this legislation, nadoes in the heart of Miami. continue to respond to repeat disasters we will definitively endorse both the The so-called Groundhog Day storm sav- in the same locations in an endless program and Director Witt’s leader- aged 600 homes in Dade, Broward and Monroe cycle of damage-repair-damage-repair. counties. It left two tugboats parked on ship, and we expect that the initiative It is for these reasons, Mr. President, Sunny Isles Beach and caused $2 million in will produce measurable results in re- that Senator INHOFE and myself intro- damage to the Keys’ lobstering industry. ducing the costs of disaster in the fu- duced the Disaster Mitigation Act of Barely three weeks later, another storm ture. hammered the central part of the state, com- 1998. Our legislation focuses the ener- ing ashore in the Tampa Bay area but gies of Federal, State, and local gov- Mr. President, this legislation is the spreading throughout the peninsula. Myers ernments on disaster mitigation, shift- result of coordination and cooperation said the president was still in the process of ing the Nation’s efforts toward pre- with FEMA, the National Association issuing the disaster declaration for the ventative—rather than responsive—ac- of Emergency Management, the Na- Groundhog Day storm when the bad weather tional League of Cities, representatives hit. tions, in order to prepare our citizens ‘‘So they just added this onto the one they for disasters now and in the future. of the private and voluntary sectors, were already working with,’’ he said. ‘‘The I worked very closely with Senator and numerous other state and local storm kept on coming, and they kept on add- INHOFE to develop this bipartisan legis- governmental organizations. I strongly ing.’’ lation, which has been reported out of believe that this legislation represents The most dramatic were bands of swarm- the Environment and Public Works a historic change in the nation’s efforts ing tornadoes that bracketed Orlando in Committee. This legislation will more to prevent the effects of natural disas- March, flattening communities near Kis- comprehensively and efficiently ad- ters. By taking proactive steps to im- simmee and those east of Sanford. All told, plement mitigation now, we will re- nearly two dozens Floridians were killed in dress the threats we face from disasters those weather disasters. of all types. The bill is composed of two duce the damage, pain, and suffering from disasters in the future that have MOST OF THE STATE titles: Title I seeks to reduce the im- become all too familiar to us from the ‘‘Eventually they got to 56 counties,’’ only pact of disasters by authorizing a ‘‘pre- 11 short of Florida’s 67 counties, Myers said. disaster mitigation’’ program; Title II disasters we have faced in the recent ‘‘They finally stopped adding them on April seeks to streamline the current dis- past. 24.’’ aster assistance programs to save ad- Mr. President, I urge my colleagues The lull in El Nin˜ o’s wind and rain proved ministrative costs, and to simplify to support Senator Inhofe and myself anything but benign, however. With such a these programs for the benefit of by joining with us in our efforts to pro- wet spring, the underbrush in the state’s forests grew at an incredible pace, becoming States, local communities, and indi- tect the citizens of the U.S. from disas- lush and thick. vidual disaster victims. ters now and in the future. I ask the ‘‘Then it just dried up. It didn’t rain,’’ To address the problems associated Senators who have most recently been Myers said. ‘‘We knew that El Nin˜ o would with the damage-repair-damage-repair affected by Hurricane Georges, as well

VerDate Mar 15 2010 00:42 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00082 Fmt 4624 Sfmt 0634 E:\1998SENATE\S10OC8.REC S10OC8 mmaher on DSKCGSP4G1 with SOCIALSECURITY October 10, 1998 CONGRESSIONAL RECORD — SENATE S12353 as the many Senators whose constitu- New York. As the community rep- mother came to the United States with ents have been impacted by cata- resentative and chairperson of the seven other children to attend Paul strophic disasters over the past several Health and Hospital Council of the Mo- Newman’s ‘‘Hole in the Wall’’ camp in years, to support this legislation and hawk Valley from 1987–1992, he lead Connecticut. ensure its passage before the end of that Council toward developing a hos- While in this country, Vova was able this session.∑ pital consolidation plan for four area to receive extensive cancer treatment f hospitals. That succeeded in making and chemotherapy. In November of quality health-care more accessible 1992, his cancer went into remission. NATIONAL OPTICIANS MONTH and affordable to local residents. Since Regrettably, the other children from ∑ Mr. GRAMS. Mr. President, January 1988 he has been a trustee of The Sav- Chornobyl were not as fortunate. They 1999 will be celebrated throughout the ings Bank of Utica. returned to the Ukraine and they died United States as National Opticians I have had the privilege to speak at one by one because of inadequate can- Month. I am pleased to inform my col- three commencements in which Mi- cer treatment. Not a child survived. The air, food, and water in the leagues that one of my constituents, chael Simpson participated—at his Ukraine are still contaminated with Gary R. Aiken of Minnetonka, Min- graduation from Fordham College in radiation and are perilous to those like nesota, is president of the Opticians 1970 when he earned his bachelor’s de- Vova who have a weakened immune Association of America, which is spon- gree, at Syracuse University in 1983 soring the observance. system. upon receipt of his M.B.A., and during Additionally, cancer treatment avail- Nearly all Americans aged 65 or older his tenure as Utica College President. able in the Ukraine is not as sophisti- require some help to see their best and With great admiration and gratitude cated as treatment available in the sixty percent of Americans wear eye- I commend Dr. Simpson for his com- United States. glasses or contact lenses. Opticians, mitment to excellence in education Although Vova completed his chemo- skilled in fitting and dispensing eye- and his service to his fellow citizens of therapy in 1992, he continues to need glasses and contact lenses, provide the New York. I wish him all the best on medical follow-up on a consistent expert assistance we need to make the his sojourn in Paris.∑ basis, including physical examinations, most of our vision. Technology has f lab work and radiological examina- brought us literally thousands of pos- tions to assure early detection and TAIWAN’S NATIONAL DAY sible combinations of eyeglass frames prompt and appropriate therapy in the and lenses and an array of contact ∑ Mr. KERRY. Mr. President, I want to unfortunate event the leukemia recurs. lenses. Dispensing opticians play a piv- take this opportunity to extend my Because of his perilous medical con- otal role in guiding eyewear customers congratulations to President Lee Teng- dition, Vova and his family have done to the combination which exactly fits hui., Vice President Lien Chan and the everything possible to remain in the their need. people of the Republic of China today, United States. Since 1992, they have Through formal education programs, on their National Day. obtained a number of visa extensions, voluntary national certification and Taiwan has continued to prosper eco- and I have helped them with their ef- mandatory licensing in many states, nomically even in the face of the Asian forts. and programs of continuing education, financial crisis. As the world’s four- In March of 1997, the last time the dispensing opticians acquire the skills teenth largest economic entity, Taiwan Malofienkos visas were expiring, I ap- and competence to correctly, effi- plays a significant role in global trade pealed to the INS and the family was ciently and effectively fill eyewear pre- and Asian economies. With its per cap- given what I was told would be final scriptions. At the same time, retail op- ita income of $13,000 US dollars, Tai- one-year extension. ticians are an important part of our wan provides an important market for So we have a family battling for over nation’s small business community and American consumer goods. six years now, to stay in this country. provide the competitive balance which In addition to its economic successes, And why? So that they can save the keeps eyewear affordable for all Ameri- Taiwan has embarked upon a demo- life of their child, Vova. Because of the compelling cir- cans. cratic course resulting in a pluralistic cumstances of their case, I introduced It is a pleasure to acknowledge the society which enjoys basic democratic S. 1460, which was approved unani- important role of dispensing opticians rights and freedoms including freedom mously by the Senate Judiciary Com- as they assist us all in making the of the press and direct elections for the mittee. most of our precious eyesight. I com- president and other officials. After I introduced that bill, Senator mend them for their efforts and con- The people of Taiwan and its leader- ABRAHAM, in his capacity as Chairman gratulate Gary Aiken and the members ship should be very proud of the suc- of the Immigration Subcommittee, re- of the Opticians Association of Amer- cesses that they have achieved. I con- quested a report from the INS and that ∑ ica for their accomplishments. gratulate them on this special day.∑ stayed any further INS proceedings. f PRIVATE RELIEF BILLS But at the end of this Congress they would be subject to deportation. That MICHAEL K. SIMPSON ∑ Mr. LAUTENBERG. Mr. President, I is why I have worked so hard to get ∑ am pleased that key members of the Mr. MOYNIHAN. Mr. President, I rise this bill passed this session of Con- to pay tribute to New York’s Dr. Mi- Senate have agreed to pass all the gress. chael K. Simpson who last year com- pending private relief bills in one pack- This family has endured enough. pleted ten years of service as President age and send it over to the House. They cannot have the threat of depor- of Utica College at Syracuse University I would like to thank the principals tation hanging over their heads. They and is now President of the American who have been involved in this effort, are dealing with enough trauma from University in Paris. Senators HATCH, ABRAHAM, LEAHY and Vova’s cancer. While at Utica, Dr. Simpson taught KENNEDY. This package will include my I wish my colleagues could meet international relations, contemporary bill to help Vova Malofienko. Vova—then they would understand why French politics, international law, the Let me tell you a little about Vova I feel so strongly about this case. He is political economics of multinational Malofienko and his family. Vova was truly a remarkable young man. corporations, macro- and micro- born in Chernigov, Ukraine, just 30 Throughout his battle against can- economics, and American foreign pol- miles from the Chornobyl nuclear reac- cer, he has been an inspiration. He has icy. He has also been a visiting pro- tor. been an honors student at Millburn fessor at the Maxwell School of Citi- In 1986, when he was just two, the re- Middle School, and he is an eloquent zenship at Syracuse University and di- actor exploded and he was exposed to spokesperson for children with cancer. rector of Syracuse’s study center in high levels of radiation. He was diag- He has rallied the community and Strasbourg, France. nosed with leukemia in June 1990, helped bring out the best in everyone. In addition to his broad academic ex- shortly before his sixth birthday. His dedication, grace, and dignity pro- perience, Dr. Simpson has dedicated Through the efforts of the Children of vide an outstanding example, not just himself to the people of Oneida County, Chornobyl Relief Fund, Vova and his to young people, but to all Americans.

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COL. EDWARD N. STEVENS, 0000. THE FOLLOWING NAMED OFFICERS FOR APPOINTMENT Again, I want to thank Senators COL. MERLE S. THOMAS, 0000. IN THE RESERVE OF THE ARMY TO THE GRADES INDI- HATCH, ABRAHAM, LEAHY and KENNEDY COL. STEVEN W. THU, 0000. CATED UNDER TITLE 10, U.S.C., SECTION 12203: COL. FRANK E. TOBEL, 0000. for their diligence. To be major general IN THE ARMY I hope that we will pass this package BRIG. GEN. JERALD N. ALBRECHT, 0000. THE FOLLOWING NAMED OFFICER FOR APPOINTMENT BRIG. GEN. WESLEY A. BEAL, 0000. on Monday and send it to the House IN THE UNITED STATES ARMY TO THE GRADE INDICATED BRIG. GEN. WILLIAM N. KIEFER, 0000. UNDER TITLE 10, U.S.C., SECTION 624: BRIG. GEN. WILLIAM B. RAINES, JR., 0000. and then the President. Then, Vova can BRIG. GEN. JOHN L. SCOTT, 0000. continue his fight in the safety of To be brigadier general BRIG. GEN. RICHARD O. WIGHTMAN, JR., 0000. United States.∑ COL. HARRY A. CURRY, 0000. To be brigadier general f THE FOLLOWING NAMED OFFICER FOR APPOINTMENT COL. ANTONY D. DI CORLETO, 2049. IN THE UNITED STATES ARMY TO THE GRADE INDICATED COL. GERALD D. GRIFFIN, 0000. WHILE ASSIGNED TO A POSITION OF IMPORTANCE AND COL. TIMOTHY M. HAAKE, 0000. RECESS UNTIL 2 P.M. MONDAY, RESPONSIBILITY UNDER TITLE 10, U.S.C., SECTION 601: COL. JOSEPH C. JOYCE, 0000. COL. CARLOS D. PAIR, 0000. OCTOBER 12, 1998 To be lieutenant general COL. PAUL D. PATRICK, 0000. COL. GEORGE W. PETTY, JR., 0000. The PRESIDING OFFICER. Under MAJ. GEN. MICHAEL A. CANAVAN, 0000. COL. GEORGE W. S. READ, 0000. COL. JOHN W. WEISS, 0000. the previous order, the Senate stands THE FOLLOWING NAMED OFFICER FOR APPOINTMENT in recess until Monday at 2 p.m. IN THE RESERVE OF THE ARMY TO THE GRADE INDI- NAVY CATED UNDER TITLE 10, U.S.C., SECTION 12203: Thereupon, at 4:10 p.m., the Senate THE FOLLOWING NAMED OFFICER FOR APPOINTMENT To be brigadier general IN THE UNITED STATES NAVAL RESERVE TO THE GRADE recessed until Monday, October 12, 1998, INDICATED UNDER TITLE 10, U.S.C., SECTION 12203: at 2 p.m. COL. JOHN M. SCHUSTER, 0000. To be rear admiral (lower half) THE FOLLOWING NAMED OFFICER FOR APPOINTMENT f IN THE UNITED STATES ARMY TO THE GRADE INDICATED CAPT. MARIANNE B. DREW, 0000. WHILE SERVING AS THE DIRECTOR, NATIONAL IMAGERY AND MAPPING AGENCY DESIGNATED AS A POSITION OF THE FOLLOWING NAMED OFFICER FOR APPOINTMENT CONFIRMATIONS IMPORTANCE AND RESPONSIBILITY UNDER TITLE 10, IN THE UNITED STATES NAVY TO THE GRADE INDICATED U.S.C., SECTIONS 441 AND 601: WHILE ASSIGNED TO A POSITION OF IMPORTANCE AND Executive nominations confirmed by RESPONSIBILITY UNDER TITLE 10, U.S.C., SECTION 601: the Senate October 10, 1998: To be lieutenant general To be vice admiral IN THE AIR FORCE MAJ. GEN. JAMES C. KING, 0000. REAR ADM. SCOTT A. FRY, 0000. THE FOLLOWING NAMED OFFICER FOR APPOINTMENT THE FOLLOWING NAMED OFFICER FOR APPOINTMENT THE FOLLOWING AIR NATIONAL GUARD OF THE UNITED IN THE UNITED STATES ARMY TO THE GRADE INDICATED STATES OFFICER FOR APPOINTMENT IN THE RESERVE IN THE UNITED STATES NAVY TO THE GRADE INDICATED WHILE ASSIGNED TO A POSITION OF IMPORTANCE AND WHILE ASSIGNED TO A POSITION OF IMPORTANCE AND OF THE AIR FORCE, TO THE GRADE INDICATED UNDER RESPONSIBILITY UNDER TITLE 10, U.S.C., SECTION 601: TITLE 10, U.S.C., SECTION 12203: RESPONSIBILITY UNDER TITLE 10, U.S.C., SECTION 601: To be brigadier general To be lieutenant general To be vice admiral COL. JAMES C. BURDICK, 0000. MAJ. GEN. EDWIN P. SMITH, 0000. VICE ADM. PATRICIA A. TRACEY, 0000. THE FOLLOWING AIR NATIONAL GUARD OF THE UNITED THE FOLLOWING NAMED OFFICER FOR APPOINTMENT IN THE ARMY STATES OFFICERS FOR APPOINTMENT IN THE RESERVE IN THE UNITED STATES ARMY TO THE GRADE INDICATED OF THE AIR FORCE, TO THE GRADES INDICATED UNDER UNDER TITLE 10, U.S.C., SECTION 624: ARMY NOMINATIONS BEGINNING MICHAEL C. AARON, TITLE 10, U.S.C., SECTION 12203: AND ENDING RICHARD G. * ZOLLER, WHICH NOMINATIONS To be major general WERE RECEIVED BY THE SENATE AND APPEARED IN THE To be major general CONGRESSIONAL RECORD ON SEPTEMBER 23, 1998. BRIG. GEN. ANTHONY R. JONES, 0000. ARMY NOMINATIONS BEGINNING MATTHEW L. KAMBIC, BRIG. GEN. WALTER R. ERNST II, 0000. AND ENDING JAMES G. PIERCE, WHICH NOMINATIONS BRIG. GEN. BRUCE W. MAC LANE, 2001. THE FOLLOWING NAMED OFFICER FOR APPOINTMENT WERE RECEIVED BY THE SENATE AND APPEARED IN THE BRIG. GEN. PAUL A. POCHMARA, 0000. IN THE UNITED STATES ARMY TO THE GRADE INDICATED CONGRESSIONAL RECORD ON SEPTEMBER 30, 1998. BRIG. GEN. MASON C. WHITNEY, 0000. WHILE ASSIGNED TO A POSITION OF IMPORTANCE AND RESPONSIBILITY UNDER TITLE 10, U.S.C., SECTION 601: IN THE MARINE CORPS To be brigadier general To be lieutenant general MARINE CORPS NOMINATION OF JEFFREY M. DUNN, COL. JOHN H. BUBAR, 0000. WHICH WAS RECEIVED BY THE SENATE AND APPEARED COL. VERNA D. FAIRCHILD, 0000. MAJ. GEN. MICHAEL L. DODSON, 0000. IN THE CONGRESSIONAL RECORD OF SEPTEMBER 29, 1998. COL. ROBERT I. GRUBER, 0000. COL. MICHAEL J. HAUGEN, 0000. THE FOLLOWING NAMED OFFICER FOR APPOINTMENT IN THE NAVY COL. WALTER L. HODGEN, 0000. IN THE UNITED STATES ARMY TO THE GRADE INDICATED COL. LARRY V. LUNT, 0000. WHILE ASSIGNED TO A POSITION OF IMPORTANCE AND NAVY NOMINATION OF MICHAEL C. GARD, WHICH WAS COL. WILLIAM J. LUTZ, 0000. RESPONSIBILITY UNDER TITLE 10, U.S.C., SECTION 601: RECEIVED BY THE SENATE AND APPEARED IN THE CON- COL. STANLEY L. PRUETT, 0000. GRESSIONAL RECORD OF SEPTEMBER 11, 1998. COL. WILLIAM K. RICHARDSON, 0000. To be lieutenant general NAVY NOMINATION OF THOMAS E. KATANA, WHICH WAS COL. RAVINDRAA F. SHAH, 0000. RECEIVED BY THE SENATE AND APPEARED IN THE COL. HARRY A. SIEBEN, JR., 0000. MAJ. GEN. RANDALL L. RIGBY, JR., 0000. CONGSIONAL RECORD OF SEPTEMBER 16, 1998.

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