E PL UR UM IB N U U S Congressional Record of America PROCEEDINGS AND DEBATES OF THE 106th CONGRESS, SECOND SESSION

Vol. 146 , THURSDAY, DECEMBER 7, 2000 No. 150 Senate (Legislative day of Friday, September 22, 2000)

The Senate met at 9:59 a.m., on the RECOGNITION OF THE ACTING close personal friend, Elmer Rasmuson, expiration of the recess, and was called MAJORITY LEADER who passed away last Saturday at the to order by the President pro tempore The PRESIDING OFFICER. The Sen- age of 91. is a far better place as [Mr. THURMOND]. ator from Alaska. a consequence of his life of public serv- f ice, his achievements in business, and PRAYER his personal philanthropy. The Chaplain, Dr. Lloyd John SCHEDULE Elmer was born in Yakutat, Alaska Ogilvie, offered the following prayer: Mr. MURKOWSKI. Mr. President, I in 1909, not long after the Klondike Gracious God, all through our history know all Members are interested in the gold rush. His life spanned Alaska’s as a nation, You have helped us battle schedule today, and the leader has modern history, history that he had a the enemies of freedom and democracy. asked me to notify all Senators that significant hand in shaping. Elmer served Alaskans in both the Today, on Pearl Harbor Day, we re- the Senate will be in a period of morn- public and private realms. He was a member the fact that the pages of our ing business until 1:45 today. Following morning business, the Senate will re- successful banker who put together history are red with the blood of those Alaska’s first system of statewide who have paid the supreme sacrifice in sume postcloture debate on the bank- ruptcy conference report. Under the branch banking. That wasn’t any easy the just war against tyranny. Those thing to do in a wild, far-flung terri- who survived the wars of the past half previous order, Senator GRASSLEY, Senator HATCH, Senator LEAHY, and tory like Alaska with four time zones, century are all our distinguished living but he succeeded in doing a tremendous heroes and heroines. They carry the Senator WELLSTONE will each have 30 minutes for debate prior to a 3:45 p.m. job with tremendous imagination and honored title of veterans. perseverance. Now, Lord, we dedicate this day to vote on final passage. A vote on a con- tinuing resolution is also expected dur- Along the way, Elmer amassed a per- You. Help us to realize that it is by ing today’s session. Senators will be sonal fortune, which he had, in recent Your permission that we breathe our notified as that vote is scheduled. I years, used to benefit libraries, muse- next breath and by Your grace that we thank my colleagues for their atten- ums, and universities in our State. are privileged to use the gifts of intel- tion. This legacy will live on, as it was lect and judgment You provide. Give Elmer’s wish that his personal fortune f the Senators a perfect blend of humil- continue to benefit Alaska long after ity and hope so they will know that ORDER OF PROCEDURE his death. You have given them all that they The PRESIDING OFFICER. Under Elmer also enjoyed a distinguished have and are and have chosen to bless the previous order, the time until 11 record of public service. He served on them this day. You are our Lord and a.m. is under the control of the Sen- the University of Alaska Board of Re- Saviour. Amen. ator from Washington, Mrs. MURRAY. gents for nearly twenty years; and he Mr. MURKOWSKI. Mr. President, the was the mayor of Anchorage from 1964– f Senator from the State of Washington 1967—including the difficult period of has been kind enough to allow me a few time encompassing the Good Friday PLEDGE OF ALLEGIANCE moments to make a statement on be- Earthquake of 1964 and the rebuilding The Honorable JIM BUNNING, a Sen- half of an outstanding Alaskan who of Alaska’s largest city. ator from the State of Kentucky, led passed away a few days ago. With her Elmer also had a keen interest and the Pledge of Allegiance, as follows: permission, I ask unanimous consent expertise in fisheries issues. He served I pledge allegiance to the Flag of the that she be recognized at the conclu- on the International North Pacific United States of America, and to the Repub- sion of my remarks, and I thank her Fisheries Commission from 1969 to 1984; lic for which it stands, one nation under God, for her graciousness. he served as the first Chairman of the indivisible, with liberty and justice for all. The PRESIDING OFFICER. Without North Pacific Fisheries Management objection, it is so ordered. The Senator Council. He was instrumental in the f from Alaska. creation of the 200-mile fisheries limit, f and in rebuilding the State’s salmon RESERVATION OF LEADER TIME runs after years of federal neglect. The PRESIDING OFFICER (Mr. ELMER RASMUSON Elmer brought this knowledge of BUNNING). Under the previous order, Mr. MURKOWSKI. Mr. President, I fisheries management to the U.S. Arc- the leadership time is reserved. rise to honor a truly great Alaskan, a tic Research Commission, a position

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

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VerDate 06-DEC-2000 01:00 Dec 08, 2000 Jkt 089060 PO 00000 Frm 00001 Fmt 4624 Sfmt 0634 E:\CR\FM\A07DE6.000 pfrm02 PsN: S07PT1 S11664 CONGRESSIONAL RECORD — SENATE December 7, 2000 that President ap- pageant which will be held in early Washingtonians—regardless of party pointed him to fill in 1988. He served in February in Gary, Indiana. Ivette will affiliation—have come up to me with that position with great distinction, to compete for the title of Miss USA with high praise and appreciation for Sen- the benefit of Alaska and the entire other young women from 49 states and ator GORTON’S long service to our Nation. the District of Columbia. state, our country and this proud insti- We will long remember the benefits Upon winning the USA tution. from his legacy of continuing philan- title, Ivette won scholarship and ward- I want to share with my colleagues a thropy. Elmer hired me back in 1959, robe money, a free trip to the national passage from an editorial this week in my first job in banking. I worked for pageant, and other generous prizes, as the Everett Herald. The Herald edi- him as a branch manager at one of the well as her crown and sash. However, torial reads, small offices in Anchorage and later this is not her first time wearing a History will rank Gorton with Senator throughout offices in southeastern crown. In April 1999, Ivette represented Henry M. ‘‘Scoop’’ Jackson and Senator War- Alaska. We remained close friends Alaska as our Cherry Blossom Princess ren G. Magnuson as an extraordinary leader through the 40 years that followed. His for the National Cherry Blossom Fes- in D.C. on behalf of the state. son Ed and his wife Cathy have shared tival here in Washington, DC. Throughout his career in the Senate and many memories and good times with My wife Nancy and I have known state government, Gorton has been a leading both Nancy and me. force in many major efforts to protect the Ivette for many years. We are very environment. Elmer’s commitment to Alaska was proud of her and her accomplishments, evident in many ways. In the private He also has been a consistent, passionate and we know that she will represent advocate for individuals with problems deal- sector, he was willing to take risks, Alaska with poise and distinction. ing with bureaucracy. commit capital to budding enterprises Ivette is a pleasure to be around and a Within the Senate, Gorton has been a in Alaska. In the public realm, he gave great asset to my office staff. grand force for reasoned bipartisanship, of his time and fortune. Just last year, Mr. President, my staff and I want to never afraid to take a strong stand but also Elmer and his wife Mary Louise do- wish Ivette the best of luck when she willing to work graciously and effectively nated $40 million to the Rasmuson with members of the opposition even at the competes in the Miss USA pageant this tensest moments. Foundation so the foundation can pro- coming February, and we again extend vide grants to education and social our congratulations to her on winning Many of our colleagues are well service nonprofit organizations. He her title. aware of SLADE’S history of public also gave another $50 million to the service. As a young man, SLADE GOR- f Anchorage Museum of History which TON moved to Washington state from Elmer helped start. In fact, on his 90th NATURAL GAS almost 50 years ago. birthday he gave away $90 million. He Mr. MURKOWSKI. Mr. President, I He wanted to go West in search of also donated the largest single dona- note that the Energy Committee is new opportunities. And with $300 and a tion to the University of Alaska Mu- contemplating a hearing on Tuesday on one-way ticket on a Greyhound bus, seum in Fairbanks. the spiraling price increases associated SLADE GORTON moved to Washington It is important to add that Elmer with natural gas. We are seeing a situa- State. was generous in many other ways other tion in existence now where we have History has shown that this Midwest than his wealth. He gave his time and terminated trading, for a portion of native fit right into Washington State. effort to civic groups, including the yesterday at least, in natural gas. I am And like so many immigrants to our Boy Scouts. told that natural gas was selling for great State, SLADE GORTON was wel- There is a saying that the true mean- about $2.16 per thousand cubic feet comed and given an opportunity to ing of life is to plant trees under whose make the most of his talents. shade you do not expect to sit. That is about 9 months ago. Last month it was $5.40; $7 last week. Yesterday it hit a From the very beginning, SLADE GOR- the true test of generosity. By that TON went to work on behalf of Wash- measure, Elmer Rasmuson was an ex- high of $8.80. We really have a crisis de- veloping in this country, not only from ington State. First, he married Sally traordinary individual in his gen- Clark from Selah, Washington. That erosity. Alaskans will remember him the standpoint of the adequacy of our natural gas supplies to meet our elec- same year—1958—SLADE went into poli- for generations to come. They, as tics and was elected to the Washington Nancy and I, will miss him greatly. tric generation requirements but home heating as well, inasmuch as 50 percent State House of Representatives where f of the homes in the United States are he rose to serve as the majority leader. IVETTE FERNANDEZ—MISS heated by gas. In 1968, he was elected attorney gen- ALASKA USA 2001 I thank my colleague from Wash- eral of Washington State. On numerous Mr. MURKOWSKI. Mr. President, ington, Senator MURRAY, for the time occasions on several historic cases, congratulations are in order for a she allotted me. I wish the Chair a SLADE represented the people of Wash- ‘‘Royal’’ Alaskan on my staff. Staff As- good day and my good friend from ington before the Supreme Court. sistant Ivette Fernandez was recently Washington as well. Chief Justice Warren Burger once crowned Miss Alaska USA 2001 at the I yield the floor. said that SLADE, ‘‘makes the best argu- state pageant held in Anchorage. Ivette The PRESIDING OFFICER. The Sen- ments before the Supreme Court of any was judged in the interview, swimsuit, ator from Washington is recognized. Attorney General in America.’’ He was and evening gown competitions. Along f also recognized with the prestigious with the title of Miss Alaska USA, Wyman Award given to the out- A TRIBUTE TO SENATOR SLADE standing attorney general in the Ivette also was honored with the Miss GORTON Congeniality title. United States. Born and raised in Fairbanks, Alas- Mrs. MURRAY. Mr. President, as we By this time, SLADE had also become ka, Ivette is the daughter of Antonio all know congressional lame duck ses- a respected leader throughout Wash- and Gloria Fernandez of Fairbanks. sions following an election are a rarity. ington State. She is a graduate of Lathrop High They usually arise when Congress is After three terms as the Washington School in Fairbanks and attended the unable to finish its business in a timely State Attorney General, SLADE GORTON University of Alaska Fairbanks before fashion, and that is true with this year ran for an won a seat in the United transferring to The George Washington as well. States Senate. He was elected three University (GWU) in Washington, DC. But this session affords me and this times to the giv- She graduated with a Bachelor of Arts Congress an opportunity to acknowl- ing him an impressive record of win- degree from GWU in the fall of 1999. edge and pay tribute to the service of ning statewide election six times in Her future plans include attending law an esteemed colleague. Senator SLADE Washington. school and working in International GORTON, the Senior Senator from All of this is offered as a brief history Affairs. Washington state, will be ending his of SLADE’s many years of service. With As the new Miss Alaska USA, Ivette service here after 18 years in the Sen- time, there will certainly be many pub- will represent Alaska in the Miss USA ate. lic tributes to Senator GORTON. But

VerDate 06-DEC-2000 00:03 Dec 08, 2000 Jkt 089060 PO 00000 Frm 00002 Fmt 4624 Sfmt 0634 E:\CR\FM\G07DE6.003 pfrm02 PsN: S07PT1 December 7, 2000 CONGRESSIONAL RECORD — SENATE S11665 what I’d like to focus on now is our half of our constituents. And certainly, to our constituents. We worked to- time together in the United States all of Washington State appreciated his gether to boost the growing biotech Senate and the work we were able to do determined efforts to represent one of sector in our State and the promising together over the last eight years. the great symbols of Washington State. future that companies like Immunex I am sure all of my colleagues share Ask the Bush administration what it and others are building in Washington my own appreciation for the support, was like to do battle with SLADE GOR- State. From securing research dollars guidance, and sacrifices our families TON when he fought his own party to to representing the UW Medical make so that we can serve in the Sen- save the National Endowment for the School, Washington State’s health care ate. Our successes throughout our ca- Arts. needs were well served by the work of reers in public service are shared with Despite Washington, DC’s strong de- Senator GORTON. Here, like in so many our families. We rely on them in so sire to label us all, SLADE was always areas, he had an impact for the better- many ways. open. And when he took on a cause, he ment of our State and our country. He And that is certainly true for SLADE often surprised people. Throughout his was a champion on autism issues and I GORTON. Sally and SLADE have been career in both Washingtons, SLADE de- regularly worked with him to expand partners for all of his years of service. fied labels. health care for children. From Olympia, Washington to Wash- Most recently, Senator GORTON and I Senator GORTON was always known ington, D.C., Sally Gorton has been worked very closely on the issue of for tremendous staff work both in there each and every day. She and pipeline safety. Unfortunately, a trag- Washington, DC and throughout the SLADE have three children and seven edy in Bellingham, Washington State of Washington. He has served as grandchildren, who I know bring im- claimed three young lives and scarred a mentor to literally thousands of pro- mense pride to the Gorton family. forever a community. SLADE was right fessionals. The family tree of Gorton So, as we acknowledge and honor there with me from the very beginning, staffers past and present is a truly im- SLADE GORTON, I want to pay special working to raise the profile of the issue pressive list of Washingtonians. tribute to Sally Gorton and the entire and eventually pass through the Sen- One of Senator GORTON’s greatest and Gorton Family. We’ve all had to endure ate the toughest pipeline safety legis- lasting contributions to our State will some tough things in seeking to rep- lation ever adopted by either body of be the years of public service his resent our States in the Senate. We ac- Congress. Senator GORTON was instru- former staffers will give to Washington cept that politics can sometimes be mental to this effort. Working to- State. rough. gether, we took on some very powerful My staff and I have worked closely Our families—as our biggest defend- interests and extracted some tough with Senator GORTON’s staff. That ers—often take it more personally than compromises. working relationship was always inter- At the Appropriations Committee, we do. And, like all political families, rupted by an annual softball game that Senator GORTON and I teamed up on the Gorton family has been instru- could be as competitive as any Apple numerous instances each and every Cup football game between the Univer- mental to all of SLADE’S many suc- year to advance and protect Washing- cesses. Washington State is proud and sity of Washington and Washington ton’s many interests. From agriculture State University. I am proud to say the appreciative of all that Sally Gorton research programs benefiting apple Murray softball team won its share of has also done. growers and wheat farmers to export Much has been said in Washington games. But so did the Gorton team. promotion programs to land exchanges. State about the differences between And there were a couple of years where Washington was the only State with Senator GORTON himself contributed to Senator GORTON and myself. And while two appropriators. We were fortunate. his team’s wins. It was a friendly ri- SLADE and I have had our differences, More so because SLADE chaired the In- valry but I am sure SLADE will agree, not enough has been said about our terior Subcommittee where Wash- we both really wanted to win that ability to work together on behalf of ington has so many interests. game. Washington State. We worked together to clean up the The Gorton staff is as loyal as any on SLADE GORTON was a champion for Hanford Nuclear Reservation. We were Capitol Hill. And I am sure they will Washington State. When the interests partners in the effort to ease the Puget have an opportunity to thank Senator of Washington State were at stake, we Sound area’s very difficult traffic con- GORTON for all of his personal and pro- were a great team. gestion problems at the Transportation fessional guidance and assistance. I will miss our ability to work to- Subcommittee where we both served. But I am also sure they would want gether on a bipartisan basis, combining Beyond the Appropriations Com- me to say to Senator GORTON that they our strengths, to represent our great mittee, there are so many other issues believed in his work and that they will State. that we worked well together on behalf always be proud to call themselves As my colleagues know, there is also of Washington State. Commercial fish- Gorton staffers. no greater adversary in the United eries is immensely important to our This is certainly a time of change for States Senate than SLADE GORTON. State and we worked closely on the the country and for the Senate. And When Senator GORTON took on an Magnuson-Stevens Act in 1996 and the while Senator GORTON will leave the issue, everyone knew they had better American Fisheries Act in 1998. We re- Senate, we shouldn’t expect to see him prepare for an energetic and spirited cently worked together to pay tribute fade from the public scene. At home, he fight. Senators on both sides of the to a Nisei veteran and Washington will continue to be a respected leader aisle know what a challenge it is to State native William Kenzo Nakamura with perhaps many opportunities ahead take on Senator GORTON. by naming a courthouse after him in to further shape and influence our Most of you didn’t have to take those , Washington. State. fights home to your constituencies like We did work collaboratively on se- And, perhaps his service in Wash- I did. But those differences between lecting Federal judges in a time when ington, DC will continue as well. Senator GORTON and I were rare. And confirming judges was overly partisan. Change may seem uncertain but I am they were never personal or vindictive. We succeeded in getting our judges confident—just as he did almost 50 There were no political vendettas, and through this difficult process by work- years ago on the Greyhound bus—that we were always able to move onto the ing together. Senator GORTON will make the most of next issue of importance to our con- Time and again, we both worked to the new opportunities to come. stituents. help Boeing in its relationships with Senator GORTON, on behalf of all of Ask the Clinton administration and many foreign aircraft customers. Washington State, thank you for mak- the Justice Department what it is like Whether working with USTR or a for- ing Washington State your home. We to take on an issue and differ with eign government, SLADE worked hard have benefited enormously from the SLADE GORTON. He was a champion for for the almost 100,000 Washington decision you made as a young man to Microsoft in its ongoing legal battles State families who work at Boeing and settle in Washington State. Your serv- with the Department of Justice. I re- rely on aircraft sales. ice here in the Senate is one proud part spected his work on behalf of Microsoft Senator GORTON and I also worked of a dedicated and accomplished career and was proud to work with him on be- closely on health care issues important in public service.

VerDate 06-DEC-2000 00:03 Dec 08, 2000 Jkt 089060 PO 00000 Frm 00003 Fmt 4624 Sfmt 0634 E:\CR\FM\A07DE6.001 pfrm02 PsN: S07PT1 S11666 CONGRESSIONAL RECORD — SENATE December 7, 2000 I yield the floor to my colleague Sen- their concerns. As Senator MURRAY has I feel a great emptiness inside at the ator GORDON SMITH from . reminded us, Microsoft knew no great- thought of his departure. But I know, Mr. SMITH of Oregon. I thank Mrs. er champion on the floor of the Senate as he knows, that in democracy you do MURRAY, the Senator from Wash- than SLADE GORTON as he battled for not always get to win, but you always ington, for her kind words on behalf of this State’s great interest in get your say. I hope the day will come, our colleague and friend, Senator Microsoft’s survival and success. So he in a different forum, perhaps, when SLADE GORTON. was both high tech and farmer friendly. SLADE GORTON will have his say again. I am filled with conflicting emotions He was a man for all seasons for the Until then, I pray God’s choicest this morning. It is easy for me to come and for his State of blessings for SLADE and Sally GORTON to the floor of the Senate to sing the Washington. to sustain them in this difficult transi- praises of SLADE GORTON. It is hard for This morning, as I contemplated tion and to help all of us who remain me to contemplate this place without what I could say about him, a passage behind to fill his very considerable him. As Senator MURRAY has detailed of scripture from the New Testament shoe size as a Senator. his history, I won’t repeat it, but I do came to my mind that seemed to be, in I yield the floor. think it is significant that this good my view, the bright way that I see The PRESIDING OFFICER. The Sen- man comes from a family from New SLADE GORTON. After giving the Ser- ator from Washington. England but, like a delicious Wash- mon on the Mount, Jesus said: Mrs. MURRAY. Mr. President, I ask ington apple, he is a product of Wash- Ye are the light of the world. A city that unanimous consent to have printed in ington State. is set on a hill cannot be hid; neither do men the RECORD a number of statements re- SLADE often tells the story of Lewis light a candle and put it under a bushel, but garding Senator GORTON and his distin- and Clark coming down the Columbia on a candlestick, and it giveth light unto all guished service. I want to take par- that are in the house. Let your light so shine River. They approached the Pacific on before men, that they may see your good ticular note of the statement by our the Washington side. The first election works and glorify your Father, which is in colleague, JOE LIEBERMAN, who could that included minorities of African heaven. not be here today. Senator GORTON and American, Indian descent, and female SLADE GORTON’s light is very bright. Senator LIEBERMAN worked on many gender, took place on the shores of I don’t know of a brighter person in the initiatives over the years. I want to what we now know as Washington Senate, a smarter person. I have re- read his statement: State. The decision before the party ferred to him before as the E.F. Hutton Mr. President, I wish to express my great- was whether to stay in Washington or of the Senate: When he would speak, est respect and affection for Slade Gorton of whether to move to Oregon on the we would all listen. I know that is true Washington with whom I have enjoyed work- other side of the river. The vote was to in the Republican Conference. In his ing closely for a number of years. Slade’s life is characterized by his commitment to faith, move to Oregon. SLADE has always halting way, it was worth stopping used that story as an example that the family, service, and law. As he leaves the whatever you were doing to listen to Senate, I want to reminisce about some of voters are not always right. him, because what was said was worth the matters I have been privileged to work I have never shared the same conclu- remembering and to be valued and fol- with Slade Gorton. sion with respect to that story, and I lowed. Over the years, Senator SLADE GORTON has find it humbling to accede to the will So SLADE’S light, in my view, still been a great leader on educational reform, of the majority in elections, as I do burns brightly, and cannot be hid; it striving to raise the performance of our na- now, with the defeat of SLADE GORTON should still be utilized. I cannot predict tion’s elementary and secondary schools and for another term. It is a hard decision, how this Presidential election will turn the quality of education so that all children nevertheless, for me. may reach a high level of academic achieve- out, but I do hope that if it should be ment. The senior Senator for Washington SLADE was also given to say that President Bush, he will see that light and I have worked together on a number of mountains divide and rivers unite. as brightly as I do and utilize SLADE in proposals to improve our educational sys- Truly, the Columbia River is one of the service of our country still because tem. His contributions have led the way for many marvelous things that Wash- our country needs him and he has so better educational accountability and inno- ington and Oregon share together. It is much more yet to give. vation in the years ahead. the thing which has made of Washing- Like SLADE, I have known victory Of great importance to our country are tonians and Oregonians good friends and defeat in running for the Senate. I Slade Gorton’s continued efforts to preserve for so many years. It is, perhaps, the had no greater friend when I first ran and honor American history by calling for stronger history curriculum standards and greatest thing that brought SLADE for the Senate, and by a margin nearly literacy awareness in our colleges and uni- GORTON and me together, a common in- the one by which he has now lost, I also versities. I truly believe such endeavors help terest in being good neighbors, a com- lost. I remember his letter so vividly to unite our nation by demonstrating the mon interest in the values and uses of because he had worked so hard for me. importance of our shared heritage and civic the river for both natural and human It came a few days after my defeat. He culture as Americans. purposes. Oregon has lost a great friend said how no defeat for a Senator’s race One of my most memorable experiences at the end of the service of SLADE GOR- had ever affected him as badly as mine, with Slade was the work we did together after the House impeached President Clin- TON. except the time he had lost once be- Time and again, I would appeal to ton. All of us in the Senate knew that how fore. And it was a hard and bitter we handled the impeachment trial would test SLADE in his powerful position on Ap- thing. But he admonished me to get up us all—both individually and as an institu- propriations to help the people of my and to try again, as he had tried again. tion. We could either fall into intense par- State with appropriations that He admonished me to serve and to not tisanship, miring ourselves and the country mattered to farmers, to fishermen, to hide my light under a bushel because in lengthy and disruptive proceedings that foresters. He was always there, always he needed me, and the farmers, the threatened to leave this institution de- anxious to help, always anxious to pro- fishermen, and the foresters of the meaned and scarred, or we could rise above vide money for salmon restoration and Northwest needed me. I have the feel- partisanship and join together in a way that for things that make the lives of all in preserved this body’s dignity while at the ing they need me more now than ever same time ensuring a full airing of the issues the Pacific Northwest better. with SLADE’S departure. before us. SLADE GORTON was the champion of He also said—and I will never forget Slade took the lead in guiding us to a dig- many things, but I think he was the it—he told me it probably upset his law nified path, formulating a plan that ulti- greatest champion for rural people. He partners in Seattle—that the worst day mately formed the basis of the process the knew that our prosperity, our standard in the Senate is far better than the Senate adopted. Notwithstanding his per- of living, ultimately came from the re- best day in the practice of law, which sonal views, his love for his country and this sponsible use of natural resources. So is another reason he labored so hard to institution led him to put principle above he stood by farmers. He stood by fish- partisanship and to formulate a plan for re- come back and to serve. And it is a solving the impeachment case before it ermen. He stood by those who logged. marvelous privilege to be here, to serve wreaked more havoc on the Senate and the He stood by the miner. He fought for the people you love at home. nation. I was delighted to work on that plan their jobs. He fought for them to have SLADE was right. I now know how he with him, and was impressed again by the a place. But he was not just focused on felt when he wrote that letter because civilized, thoughtful, and nonpartisan way in

VerDate 06-DEC-2000 00:50 Dec 08, 2000 Jkt 089060 PO 00000 Frm 00004 Fmt 4624 Sfmt 0634 E:\CR\FM\A07DE6.002 pfrm02 PsN: S07PT1 December 7, 2000 CONGRESSIONAL RECORD — SENATE S11667 which Slade Gorton proceeded. I truly be- By this time, Slade had also become a re- Most recently, Senator Gorton and I lieve that his leadership was instrumental in spected leader throughout Washington state. worked very closely on the issue of pipeline seeing the Senate through that difficult time After three terms as the Washington state safety. Unfortunately, a tragedy in Bel- with honor. Attorney General, Slade Gorton ran for and lingham, Washington, claimed three young Slade Gorton leaves the Senate with much won a seat in the United States Senate. He lives and scarred a community forever. Slade to be proud of, and much to look forward to. was elected three times to the United States was right there with me from the very begin- For my wife and myself, I send Slade and Senate—giving him an impressive record of ning, working to raise the profile of the issue Sally and their wonderful family love and winning statewide election six times in and eventually to pass through the Senate every good wish for the next great chapter of Washington. the toughest pipeline safety legislation ever their lives. All of this is offered as a brief history of adopted by either body of Congress. Senator I also ask unanimous consent to have Slade’s many years of service. With time, Gorton was instrumental to this effort. there will certainly be many public tributes printed in the RECORD several edi- Working together, we took on some very to Senator Gorton. But what I’d like to focus powerful interests and extracted tough com- torials regarding Senator GORTON’s on now is our time together in the United promises. long service to our State of Wash- States Senate and the work we were able to At the Appropriations Committee, Senator ington. do together over the last eight years. Gorton and I teamed up in numerous in- There being no objection, the mate- I am sure all of my colleagues share my stances each and every year to advance and rial was ordered to be printed in the own appreciation for the support, guidance protect Washington’s many interests from and sacrifices our families make so that we RECORD, as follows: agriculture research programs benefitting can serve in the Senate. We rely on them in apple growers and wheat farmers to export STATEMENT BY SENATOR MURRAY IN TRIBUTE so many ways. Slade is fortunate to have promotion programs and land exchanges. TO SENATOR SLADE GORTON such a supportive family. Sally and Slade Washington was fortunate to be the only Mr. President, congressional lame duck have been partners for all of his years of state whose two senators both served on the sessions following an election are a rarity. service. From Olympia, Washington, to Appropriations Committee. Of course, Slade They usually arise when Congress is unable Washington, D.C., Sally Gorton has been chaired the Interior Subcommittee where to finish its business in a timely fashion and there each and every day. She and Slade Washington has so many interests. We that is true with this year as well. But this have three children and seven grandchildren, worked together to clean up the Hanford Nu- session affords me and this Congress an op- who I know bring immense pride to the Gor- clear Reservation. We were partners in the portunity to acknowledge and pay tribute to ton family. So, as we acknowledge and honor effort to ease the Puget Sound area’s very the service of an esteemed colleague. Sen- Slade Gorton, I want to pay special tribute difficult traffic congestion problems at the ator Slade Gorton, the senior Senator from to Sally Gorton and the entire Gorton fam- Transportation Subcommittee where we Washington state, will be ending his service ily. both served. here after 18 years in the Senate. Much has been said in Washington state Beyond the Appropriations Committee, Washingtonians regardless of party affili- about the differences between Senator Gor- there are so many other issues that we ation have come up to me with high praise ton and myself. While Slade and I have had worked well together on behalf of Wash- and appreciation for Senator Gorton’s long our differences, not enough has been said ington state. Commercial fisheries are im- service to our state, our country and this about our ability to work together on behalf mensely important to our state and we proud institution. I want to share with my of Washington state. He was a champion for worked closely on the Magnuson-Stevens Act Washington state. When the interests of colleagues a passage from an editorial this in 1996 and the American Fisheries Act in Washington state were at stake, we were a week in the Everett Herald. The Herald edi- 1998. We recently worked together to pay great team. I will miss our ability to work torial reads, ‘‘History will rank Gorton with tribute to a Nisei veteran and Washington on a bipartisan basis, combining our Senator Henry M. ‘Scoop’ Jackson and Sen- state native William Kenzo Nakamura by strengths, to represent our great state. ator Warren G. Magnuson as an extraor- naming a courthouse after him in Seattle, dinary leader in D.C. on behalf of the state. As my colleagues know, there is also no greater adversary in the United States Sen- Washington. Throughout his career in the Senate and We worked collaboratively on selecting ate than Slade Gorton. When Senator Gorton state government, Gorton has been a leading Federal judges in a time when confirming took on an issue, everyone knew they had force in many major efforts to protect the judges was overly partisan. We succeeded in better prepare for an energetic and spirited environment. He also has been a consistent, getting our judges through this difficult passionate advocate for individuals with fight. Senators on both sides of the aisle know what a challenge it is to take on Sen- process by working together. problems dealing with bureaucracy. Within Time and again, we both worked to help the Senate, Gorton has been a grand force ator Gorton. Most of you didn’t have to take those Boeing in its relationships with many for- for reasoned bipartisanship, never afraid to fights home to your constituencies like I did. eign aircraft customers. Whether working take a strong stand but also willing to work But those differences between Senator Gor- with USTR or a foreign government, Slade graciously and effectively with members of ton and I were rare. And they were never per- worked hard for the almost 100,000 Wash- the opposition even at the tensest mo- sonal or vindictive. There were no political ington state families who work at Boeing ments.’’ vendettas, and we were always able to move and rely on aircraft sales. Many of our colleagues are well aware of on to the next issue of importance to our Senator Gorton and I also worked closely Slade’s history of public service. As a young constituents. on health care issues important to our con- man, Slade Gorton moved to Washington Ask the Clinton Administration and the stituents. We worked together to boost the state from Chicago almost 50 years ago. He Justice Department what it is like to take growing biotech sector in our state and the want to go West in search of new opportuni- on an issue and differ with Slade Gorton. He promising future that companies like ties. And with $300 and a one-way ticket on was a champion for Microsoft in its ongoing Immunex and others are building in Wash- a Greyhound bus, Slade Gorton moved to legal battles with the Department of Justice. ington state. From securing research dollars Washington state. I respected his work on behalf of Microsoft to representing the UW Medical School, History has shown that this Midwest na- and was proud to work with him on behalf of Washington state’s health care needs were tive fit right into Washington state. Like so our constituents. And certainly, all of Wash- well served by the work of Senator Gorton. many immigrants to our great state, Slade ington state appreciated his determined ef- Here, like in so many areas, he had a signifi- Gorton was welcomed and given an oppor- forts to represent one of the great symbols of cant and positive impact on our state. He tunity to make the most of his talents. Washington state. Ask the Bush Administra- was a champion on autism issues, and I regu- From the very beginning, Slade Gorton tion what it was like to do battle with Slade larly worked with him to expand health care went to work on behalf of Washington state. Gorton when he fought his own party to save for children. First, he married Sally Clark from Selah, the National Endowment for the Arts. Effective leaders attract talented people to Washington. That same year—1958—Slade Slade Gorton also fought for the United their offices and Senator Gorton has always went into politics and was elected to the States Senate. When the Congress was strug- had a very effective staff both in Wash- Washington State House of Representatives. gling through a very partisan impeachment ington, DC, and throughout the State of In the Washington House, Slade rose to serve process, it was Slade Gorton who along with Washington. He has served as a mentor to as the Majority Leader. our colleague Senator Joe Lieberman literally thousands of professionals. The In 1968, he was elected Attorney General of stepped forward with a plan for the Senate. family tree of Gorton staffers past and Washington state. On numerous occasions on Senator Gorton, in this instance as well as in present is a truly impressive list of Washing- several historic cases, Slade represented the many others, had enormous respect for this tonians. One of Senator Gorton’s greatest people of Washington before the Supreme institution. That respect for the institution and lasting contributions to our state will be Court. Chief Justice Warren Burger once said is evident in the respect he enjoys among all the years of public service his former staffers that Slade, ‘‘makes the best arguments be- Senators. will give to Washington state. fore the Supreme Court of any Attorney Despite Washington D.C.’s strong desire to My staff and I have worked closely with General in America.’’ He was also recognized label us all, Slade was always open. When he Senator Gorton’s staff. That working rela- with the prestigious Wyman Award given to took on a cause, he often surprised people. tionship was always interrupted by an an- the outstanding Attorney General in the Throughout his career in both Washingtons, nual softball game that could be as competi- United States. Slade defied labels. tive as any Apple Cup football game between

VerDate 06-DEC-2000 00:50 Dec 08, 2000 Jkt 089060 PO 00000 Frm 00005 Fmt 4624 Sfmt 0634 E:\CR\FM\G07DE6.010 pfrm02 PsN: S07PT1 S11668 CONGRESSIONAL RECORD — SENATE December 7, 2000 the University of Washington and Wash- Among his most loyal backers is a small He learned to say thank you. He admitted ington State University. I am proud to say army of women who have worked for Gorton that some of his votes in his first term were the Murray softball team won its share of at various stages of his career. mistakes and he asked voters for a second games. But so did the Gorton team. And Many have gone on to their own careers in chance. there were a couple of years where Senator public life. They gave it to him. Gorton himself contributed to his team’s Now, facing forced retirement by the nar- That he lost twice shouldn’t be a legacy- wins. It was a friendly rivalry, but I think rowest of voter margins, Gorton, 72, can con- killer. We forget how tough it has been for Slade will tell you, we both really wanted to template a life of ongoing service, possibly Republicans to win the governor’s office or win that game. in a Bush administration, or better yet, as a the two U.S. Senate seats in Washington. The Gorton staff is as loyal as any on Cap- senior statesman in Washington State and In fact, since 1954 only three Republicans itol Hill. I am sure they will have an oppor- the Northwest where his talents are still have—Evans, Gorton and John Spellman. tunity to thank Senator Gorton for all of his welcome and much needed. In that same time period, eight different personal and professional guidance and as- Democrats have won those offices—five men sistance, but I am also sure they would want [From the Tacoma News Tribune, Dec. 5, and three women. me to say to Senator Gorton that they be- 2000] Gorton overcame that handicap with a lieved in his work and that they will always HOLD A PLACE FOR GORTON AMONG STATE’S strategy that has always drawn criticism— be proud to call themselves Gorton staffers. POLITICAL GIANTS he ran against Seattle and exploited the This is certainly a time of change for the (By Peter Callaghan) resentments many have for the state’s big- country and for the Senate. And while Sen- It’s a journalistic must-do. gest city. He was accused of using so-called ator Gorton will leave the Senate, we When a prominent officeholder is defeated, wedge issues that divided the state. shouldn’t expect to see him fade from the we roll out the retrospective articles—obitu- But that in itself is a Seattle-centric cri- public scene. At home, he will continue to be aries for the living. tique. It’s OK—in fact, preferred—to rep- a respected leader with perhaps many oppor- We attempt to place our politicians in per- resent Puget Sound to the detriment of the tunities ahead to further shape and influence spective before we have any. rest of the state. Doing the opposite, how- our state. It’s Slade Gorton’s turn now. The 72-year- ever, is divisive. And perhaps his service in Washington, old U.S. senator’s defeat will become official Cantwell won just five of the state’s 39 D.C., will continue as well. I am confident— Wednesday. counties. But she is defined as a unifier while just as he did almost 50 years ago on the But he was pretty sure when the first Gorton is a divider. Greyhound bus—that Senator Gorton will count of votes was released the day before The campaign is too recent for liberals to make the most of the new opportunities to Thanksgiving when he declared himself view Gorton’s service as anything but a dis- come. ‘‘cautiously pessimistic’’ that a recount aster. Senator Gorton, on behalf of the people of would make a difference. But as time passes, perhaps they’ll be more Washington state, thank you for your many It didn’t. Last Friday the county-by-coun- willing to give him his due and allow him to years of dedicated service. Thank you for ty tally showed that Democrat Maria take his place in state political history with giving your time, your energy, and your wis- Cantwell’s lead actually grew by a few hun- those other giants. dom to people of our state and our country. dred votes. We have benefitted enormously from your So Gorton walked in front of the cameras [From the HeraldNet, Dec. 5, 2000] work and we are grateful for your service. and the newsies to make a very short state- ment. He took no questions. OUR VIEWS— FOLLOWS A GREAT LINE OF SENATORS [From , Dec. 5, 2000] That left others to pass judgment on a ca- With a history of outstanding U.S. sen- GORTON’S NOTEWORTHY PUBLIC CAREER reer in politics that began in 1958. He served 10 years in the state House of Representa- ators, Washington state is about to embark There is no particular joy in bidding fare- tives, 12 as attorney general and 18 in the on what should be a fine new chapter. well to the state’s senior senator, Slade Gor- U.S. Senate. With time, Maria Cantwell ought to be- ton. Longevity is just one of the reasons he come another fine senator for Washington. This page endorsed his opponent, Maria should be considered for the same status as Indeed, the likelihood is that the Democrat Cantwell, and we look forward to the , Dan Evans, Henry Jack- from Edmonds will become an effective, changes in style and policy she can bring to son, Wesley Jones, Julia Butler Hansen and high-profile member of the Senate early on. the job. But we would be remiss if we failed to pay Tom Foley—giants all. It certainly helps Cantwell’s visibility that Impact is another reason. So is presence. tribute in this space to Gorton’s distin- her election appears to have broken the Re- So is the breadth of his legacy. guished public career. He was first elected publican majority and given Democrats a 50– But there’s a much different tone to Gor- state legislator, then attorney general and 50 tie for the next session. ton’s postmortem than for the others. Much has served three terms as Senator. The situation undoubtedly influenced two of the space is devoted not to what he was Legacy is not a notion that comes easily to major networks to interview Cantwell on but to what he wasn’t. Gorton. Late in the campaign, when asked their morning news shows Monday. As He wasn’t wildly popular. He wasn’t able to what was the legacy of his years in public Democrats point out, moreover, the election generate affection among voters. He wasn’t service, he groped for a response. Perhaps of the former high-tech executive gives the one to bring home the bacon in the form of that’s because Gorton’s career was not a country its first senator from the new econ- dams and hospitals and military bases. omy. Even in a Senate that includes a fresh- straight line toward clear goals or major ac- In a phrase, he wasn’t Scoop and Maggie. complishments. man well enough known to have won elec- This presumes, of course, that Gorton tion from without using her last As a legislator he was more pragmatist could have been just like Scoop and Maggie than ideologue. As his Republican party name, Cantwell’s talents should earn her even had he wanted to be. Times had ample notice. moved to the right, Gorton feigned just changed. Gorton was elected in the GOP enough moves in that direction to stay in of- While Cantwell is making a promising landslide that ushered in the Reagan era. entry into the Senate, Washington state cer- fice, moves that prompted criticism on this It was a time of lowered expectations of tainly will miss the presence of longtime page and elsewhere. the federal government. It was a time when Sen. Slade Gorton. Although Gorton would A careful look at the sweep of is career re- the ability to win hundreds of millions of be an excellent choice for a post in a possible veals Gorton’s better impulses. He is cred- federal pork was at an end. ited with helping to save the National En- Heck, Scoop and Maggie wouldn’t be Scoop Bush cabinet, the state has lost the clout he dowment for the Arts and the Forest Legacy and Maggie in times such as those. carried as a senator with 18 years seniority. Program, a crucial source of funds for the But Slade Gorton did manage to build his History will rank Gorton with Sen. Henry Mountains to Sound Greenway project along own legacy as a smart, savvy politician who M. ‘‘Scoop’’ Jackson and Sen. Warren G. I–90. was the go-to guy in the Washington state Magnuson as an extraordinary leader in D.C. Gorton was one of the saner voices in Con- delegation for much of the last two decades. on behalf of the state. Throughout his career gress during the impeachment. He teamed If you want your politicians warm and in the Senate and state government, Gorton with his friend, Democratic Sen. Joseph fuzzy, don’t knock on Gorton’s door. He was has been a leading force in many major ef- Lieberman, to broker a middle-ground solu- of a generation that didn’t believe in public forts to protect the environment. He also has tion that would short-circuit a trial. They displays of affection—especially the phony been a consistent, passionate advocate for were unsuccessful, but the effort is a reveal- kind practiced by some politicians. individuals with problems dealing with bu- ing example of Gorton at work during a his- That he never made an emotional connec- reaucracy. Within the Senate, Gorton has toric time in the nation’s Capitol. tion with voters hurt him in the two close been a grand force for reasoned bipartisan- Gorton’s name is attached to several major elections that he lost in 1986 and 2000. ship, never afraid to take a strong stand but accomplishments from the early years of his But most other times, Washington voters also willing to work graciously and effec- career. Lawyer and longtime civic activist realized we were electing a U.S. senator, not tively with members of the opposition even Jim Ellis credits Gorton with steering a host for a children’s TV show. at the tensest moments. through the state legislature the program Gorton did something few other politicians Gorton’s career was certainly marked by known as Forward Thrust, a package of could—he learned from that earlier defeat tough fights with opponents and a willing- major public works in King County. that he had to listen as well as talk. ness to criticize liberals from the Puget

VerDate 06-DEC-2000 00:03 Dec 08, 2000 Jkt 089060 PO 00000 Frm 00006 Fmt 4624 Sfmt 0634 E:\CR\FM\A07DE6.005 pfrm02 PsN: S07PT1 December 7, 2000 CONGRESSIONAL RECORD — SENATE S11669 Sound region. That divisiveness, in fact, may forth money on an unprecedented basis the basic thinking himself because of have contributed to his defeat by Cantwell. to do what needed to be done, both for the deeply thoughtful nature of his But he helped ensure that the less urban our air traffic control system and for mind and his instinct about not just areas of the state weren’t forgotten. the infrastructure which our Congress legislating but the way he conducted To her credit, Cantwell campaigned to be- come a senator for the entire state. She has and our Nation just blithely ignore— probably all his life. promised, in fact, to visit each of the state’s complaining about noise, complaining I admire very much the fact that he 39 counties every year. That will be a chal- about delays, and then declining to do has been in public life for so long, and lenging but worthwhile task. anything about it. It is not a problem at the age of 72 sought to continue that Cantwell has talked about the need for ac- which fixes itself. public service. He has expressed a deep tion on issues that relate directly to people’s SLADE was, in a sense, kind of a pio- belief in public service. There are many lives, including prescription drugs and con- neer on this issue which in some ways honorable professions, but I think pub- trols on health maintenance organizations. is similar to the IT phenomenon, the lic service is one of the hardest and With her incisive understanding for policy Internet; it burst upon us. But people most honorable of all of them if it is issues, demonstrated in both the state Legis- lature and the U.S. House of Representa- have been rather quick to learn about carried out with serious intent and se- tives, she could help create answers to such the new economy and the Internet and rious purpose. Ambition always accom- difficult questions. rather slow to learn about a problem panies public service, but ambition has Her lack of seniority, though, deprives the which is just as severe and technical to be overruled in the final analysis by state of the significant influence over appro- and just as complex as that one. But this concept of serving the public and priations that Gorton wielded, especially for SLADE, obviously, as is typical of him, of trying to make a better situation for environmental projects. The state, and Cant- never shirked his duty either to his the State one represents and also our well, will have to look to Sen. State or to his country. Nation. to fill as much of the gap as possible. Cantwell returns to politics after making a He has a work ethic. A ‘‘work ethic’’ SLADE is a Senator from the State of fortune with a high-tech company in just simply describes itself, but the way in Washington but also from the United five years. As the careers of Jackson, Magnu- which SLADE GORTON has carried that States of America. He understood that son and Gorton have demonstrated, the out over all the years I have worked and exercised both of those responsibil- length of service is a critical factor in mak- with him is something which has both ities. He argued, I am told, 14 times be- ing a great senator. Cantwell should keep given me joy and a great sense of admi- fore the U.S. Supreme Court when he that in mind as she makes what is likely to ration. I don’t know if there are any was attorney general of his State. That be an impressive entrance into the Senate of cartoons anywhere, but there are a lot says to me that he did not simply, as is the United States. of stories: One always sees Senator the case sometimes, particularly in Mrs. MURRAY. Mr. President, I yield GORTON at his desk—reading. The en- more recent years, jump for the top of- such time as he may need to the Sen- tire Senate can be engulfed in a con- fice or one of the top offices. He worked ator from West Virginia, Mr. ROCKE- flagration of some sort, usually about his way up through the system. I ad- FELLER. something which means absolutely mire that. It shows a determined, a The PRESIDING OFFICER. The Sen- nothing, but SLADE GORTON under- very professional, long-term commit- ator from West Virginia. stands that and so he simply turns to ment to public service at whatever Mr. ROCKEFELLER. Mr. President, I newspapers, journals, things which— level and also respect for the experi- rise today on a personal basis to reflect again, with his very superior intel- ence one develops on the way up as one a little bit about the SLADE GORTON I lect—are increasing his knowledge, in- serves in one’s State and goes on to a have known and worked with over a creasing his perspective and the depth more national forum. number of years now. Even as I wel- of his ability, therefore, to be helpful He is and always will be a superb leg- come Mary Cantwell into the Senate, I to his people, to his country, and to the islator. He has been a superb friend to also am very sorry to see SLADE GOR- Senate. me. We have not spent a lot of time en- TON go—just because of the very ex- He had a very interesting position, gaged in personal discussion, but there traordinary character he brought to too, in the Senate, in that he was a was a constancy in the way our rela- this institution. very close adviser, and may remain so, tionship evolved and then maintained I worked with SLADE very closely on to the majority leader, . He itself which always made me believe I the Commerce Committee. Our juris- did not do that through the power of could trust SLADE GORTON and look to dictions, so to speak, overlapped a good politics. He did not lobby in the way SLADE GORTON for sound advice and deal. Our interests overlapped a good that people often do when they run for sound judgment on virtually any mat- deal. One of the pieces of legislation offices, go around trying to pick up ter. where I thought you saw SLADE work- votes in that way. It was simply the He is firm in his views, and I respect ing at his best, when he was so effec- power of his reasoned, calm intellect, that. We differ often on views, and yet tive in the Senate, was the reauthor- the even temperament of his nature, it is never a personal matter. Again, it ization of the Federal Aviation Agency. and the compelling force of his logic is a truly brilliant, analytical, ordered This was actually a very complicated and the calmness in which all of this mind coming to his conclusions in the piece of legislation. It was one that was evolved and presented itself, which I way he thought best for him and for particularly difficult because the Sen- think—my guess would be—drew Sen- the people he represents. ate as a whole has not bothered to en- ator LOTT to understand that to rely When we talked personally, it was al- gage itself particularly with the whole on SLADE GORTON’s judgment and un- most always about his grandchildren; subject of aviation and the enormity of derstanding and advice would be a very of course, about Sally, his wife, whom the crisis which is facing us and which wise thing to do. I think he married in 1958. He has seven manifests itself in the summer and SLADE GORTON and I did not nec- grandchildren, and when there was tourist season and then is quickly for- essarily have the same voting records, frustration about the Senate dragging gotten as soon as the tourist season is but we often had the same approach to on too long, he would talk about the over and the delays diminish some- issues, not all of which I will discuss joy of being with his grandchildren. He what. One can see, as the industry here, and we have come to differ on talked at length about that. That was grows, it also runs into more severe some of those issues. But I always have another side of SLADE GORTON: SLADE problems, financially and otherwise. had this deep sense of respect for him. GORTON the family person, the tightly SLADE GORTON had an innate under- He never was a typical Senator. He was disciplined mind, and yet underneath a standing of aviation, obviously, be- not a backslapper. Yet when he gave very warm sense of what, in many cause of the State from which he came. his word, you needed to worry no more ways, is an even larger legacy, and that But he was also a master craftsman in because that was it. As they say, his is, what is the nature of one’s family, terms of understanding issues, pro- word was his bond—and it really was. what is the nature of one’s relationship ducing legislation, and then forging a He had always an excellent staff to the members of one’s family. compromise that would lead to a result about him. Yet you always had the I express my respect for him, my af- that, in effect, reauthorized the Fed- feeling that SLADE GORTON made all of fection for him for his constancy of eral Aviation Administration and put the decisions and did, really, most of purpose and for his superbly honed

VerDate 06-DEC-2000 00:50 Dec 08, 2000 Jkt 089060 PO 00000 Frm 00007 Fmt 4624 Sfmt 0634 E:\CR\FM\A07DE6.008 pfrm02 PsN: S07PT1 S11670 CONGRESSIONAL RECORD — SENATE December 7, 2000 skills. His presence in the Senate is yond that. Wherever he touches things, conduct of occurrences of significance and will be always considered unique. either by committee work or by being in the Senate. I am not sure how that He is a unique person, cerebral but ef- called in by our majority leader to dis- will be picked up because much of it fective, highly analytical but deeply ef- cuss issues to advise him, he leaves an occurs in meetings that are not public fective in the internal combat, whether imprint. It is not that he must get his not private meetings but meetings that it be on the Appropriations Committee, way all the time, but essentially he is are just not known because they are in the Budget Committee, the Commerce rather compelling and does succeed the leader’s office or a committee Committee, the Energy Committee, or most of the time by power of persua- room. any of his various committees. He sion to leave his imprint in the Halls of But what I want to say to him is: knows how to fight. He knows how to the Senate, be it in this Chamber, You will be missed because while you achieve what he wants for the people of while we discuss things seriously and have been here, you have been felt. his State. collegially as Republicans or combined People have known you were here. As I said at the beginning, I rise to Republicans and Democrats, or cer- They knew your presence, your intel- express this respect, to express this tainly where small groups of Senators lectual presence, your humanity, your sense of admiration for the nature of meet because they must meet in their loyalty, and, yes, your skill at knowing his abilities as a Senator and his broad leadership roles. He is almost always when things ought to happen. SLADE expanse as a human being. among them. has a real knack for knowing: Well, it I thank the Presiding Officer and From my own standpoint, I have had is about time to spring this. He will be yield the floor. one major commitment, one major there doing that and, sure enough, it The PRESIDING OFFICER. The Sen- user of my time in my work, and that will go unnoticed that he was the one ator from New Mexico. is to understand and make sense of the who got it done. Mr. DOMENICI. Parliamentary in- U.S. budget. While it is not my only Individually, from my standpoint, he quiry: Is it time for the Senator from job, it is one of those the Senate ex- has been at my side every time we have New Mexico to speak about the depar- pects somebody to know a lot about if had major events on the floor that I ture of Senator SLADE GORTON? they are going to come down here and have had to manage. There have been The PRESIDING OFFICER. The time talk about it. I have been privileged to many, they have been long, and they is under the control of the Senator work in that committee since its ori- have been arduous. from Washington. gin, believe it or not. It is a rather new When I had to test them and tried Mrs. MURRAY. Mr. President, I am committee, enforcing a rather new part them on for size with SLADE GORTON, happy to yield to the Senator from of the Senate. We used to have just au- and he said, ‘‘That’s the way to do it,’’ New Mexico whatever time he needs to thorizing and appropriations, and some no one will really know what that has speak about Senator GORTON. 26 years ago we had budgeting. He has meant. Nobody will really understand Mr. DOMENICI. I am very sorry to been on that committee with me how influential saying ‘‘that’s the way ask for that. I thought Senators on our through thick and thin. to do it’’ from SLADE GORDON really is side had control. I am very pleased Everybody should know that we did a in terms of many of us here. Senator MURRAY yielded to me. lot of innovative things in that com- He has a wonderful wife Sally and Mr. President, I come this morning mittee. We rather imaginatively broad- three great, wonderful children. I hope to speak about my friend, SLADE GOR- ened the scope called reconciliation whatever happens in the next few TON, who is leaving the Senate shortly. where we can insist that things get years, since he is so knowledgeable I thought I better do it today because, done without being burdened by fili- about the workings of our Government, as most things around here, when you buster and untold amendments. We not just those items within bills on can get them done you ought to be- have done new and innovative things to which he worked so hard called appro- cause time flies and all of a sudden we set aside money for only one purpose priations, but he knows about many find Senator GORTON is out of the Sen- and it cannot be used for anything else. things in Government, I close by say- ate and we have to speak before he These are all unique and different, ing, many of us raise our hand and say, leaves. Today, I want to take a few along with regular routine things. yes, we are lawyers, and some of us minutes to share with him and his wife It did not take very long, once these know full well we are not lawyers any Sally, whom I hope will have occasion issues were put on the table and dis- longer; we have been away from the to read the RECORD, having served with cussed, for SLADE GORTON to under- profession for years. We are not what him in each of his 18 years in the Sen- stand them and to suggest ways of im- one would call a lawyer’s lawyer. But ate, what he has contributed and who proving them. That is the way he is after all these years in public life, he is. with everything he does. SLADE GORTON could step into the most It will not take me a long time to He does not have to be the kingpin, significant of legal offices in America speak about him, although to tell the but I guarantee you, those who are and and be a great, participating, achieving truth, he probably is more noteworthy who are forced to lead, if he is around modern-day lawyer, even after all these in my life in terms of being a co-Sen- helping them, you can just tell; You years of not being in the legal profes- ator on many things that are very big can see the imprint, the logic, the sion. He must have been a great solic- and important to our Nation than any strength of argument that comes from itor. He appeared before the U.S. Su- other single Senator here. him being directly involved or indi- preme Court on behalf of his State and SLADE GORTON is a quiet man. Even rectly being a helper. made some very interesting law when though he appears on the floor regu- I am not sure in the history of the he was a lawyer for his State, either in larly to discuss things, he is a very Senate how we are going to rate Sen- his attorney general’s office or other- thoughtful person and also a very hard ators over time, but I suggest that wise. worker. SLADE GORTON will certainly be recog- So I want to say to him, whatever it As we sometimes coin phrases, he is nized in some very special way for his is you choose now, Senator GORTON, certainly a workhorse, not a show 18 years because there will be few who and Sally, whatever you choose, I hope horse, and he is a very special and trace this history who may just look you will be around so we can continue unique person because he is also ex- around and say: Who were the leaders? to share with you, an occasional oppor- tremely thoughtful and shares will- Who was the majority leader? Who was tunity to share a meal, an occasional ingly his wonderful ideas, thoughts, the minority leader? Who was this or social event, or, even better, an oppor- and innovations with us, his fellow that in terms of a formal job? And then tunity from time to time to just listen Senators. attribute to them some direct legacy in to you tell us what you think of how it I think everybody knows that while this 18-year span that he served, being is, how you observe it, and, in a way, he shares no official leadership role absent 2 years while he sought election continue to bless us with all those mar- and he works hours on end on a sub- again. velous qualities you bring here. committee called the Subcommittee on But if it is looked at carefully, SLADE You have brought from your State a Appropriations for the Department of GORTON has to come out near the top of degree of pride to the Senate that is Interior, his contributions go well be- the list of influential Senators in the very difficult to replace. Far be it from

VerDate 06-DEC-2000 00:03 Dec 08, 2000 Jkt 089060 PO 00000 Frm 00008 Fmt 4624 Sfmt 0634 E:\CR\FM\G07DE6.013 pfrm02 PsN: S07PT1 December 7, 2000 CONGRESSIONAL RECORD — SENATE S11671 me to judge any other Senator from think every year he has been here he I yield the floor. any other State or even his own State, has received what is known as the The PRESIDING OFFICER. The Sen- but Senator SLADE GORTON will be here Golden Gavel for sitting in the Chair ator from North Dakota is recognized a long time in memory because many for 100 hours, something usually re- for 3 minutes. will know what he thought about the ceived by junior Members of the Sen- Mr. DORGAN. Mr. President, I saw Senate and how he thought about us. ate, but because of his interest in and the Senator from Washington, Mrs. It is hard to say he will not be down intensity and love for and commitment MURRAY, talking about her colleague, here at that seat, arguing with us on to this body, he has enjoyed the oppor- Senator SLADE GORTON. I wanted to important issues. But he will be here tunity to preside. And he has presided come over and say a word about Sen- because I cannot imagine that people extraordinarily well. ator GORTON. who lived and worked with him all He, however, as the Senator from I know people who perhaps watch the these years—I see one here on the New Mexico has mentioned, has been proceedings of the Senate see the tug floor, the distinguished chairman of probably less visible than many Mem- and the pull of debate on public policy the Appropriations Committee, who bers of the Senate but has had much and probably think to themselves, gee, knows about it very well—will ever for- more impact than most of us. His ac- those people don’t get along very well, get him, and we will not let the Senate tions and effectiveness are really in the or maybe those people don’t like each forget. famous back halls and meeting rooms other very much. I thank the Chair and yield the floor. of the Senate. Very few pieces of legis- The fact is, most of us get along well and enjoy each other’s company. SLADE The PRESIDING OFFICER (Mr. AL- lation have moved through this body GORTON is one of those Senators, a Re- LARD). The Senator from Washington. that do not, in some part, have the fin- Mrs. MURRAY. How much time is gerprints of SLADE GORTON on them. publican, someone with whom I have left under my control? He is truly an effective tactician, but severed on the Appropriations and The PRESIDING OFFICER. Three more importantly, he is an effective Commerce Committees. We get along minutes. spokesperson for a philosophy. And he well, like each other, and he has been Mrs. MURRAY. How much time does knows how to move that philosophy extraordinarily helpful to me. He is a the Senator from New Hampshire need? forward within our institution. Senator who always did his homework. Mr. GREGG. I would like to have As a result, he has had a tremendous There are some with whom you visit impact on the legislative activity of about 5 minutes. about the issues, you get kind of a Mrs. MURRAY. Mr. President, I ask this body over the years. I suppose we glassy-eyed stare because you know shouldn’t be surprised at that though. unanimous consent that the Senator that this isn’t an issue on which they The truly great Senators in this body— from New Hampshire have 5 minutes, are connecting with you or haven’t I suggest that maybe one of them is the Senator from North Dakota have 3 studied very much. I didn’t find that —have come from a tra- with SLADE GORTON. He was always minutes, and that any other Senators dition from which SLADE GORTON also prepared and had always done his who wish to bring their statements and comes. He went to school in New homework. And while at times he could have them printed in the RECORD at Hampshire. He went to school at Dart- be a bit frustrating because he took a this point regarding Senator GORTON be mouth, as did the great Daniel Web- position on an issue that you might able to do so. ster. Maybe he learned at Dartmouth have felt was the wrong position, he al- The PRESIDING OFFICER. Is there some of those characteristics which ways had an opportunity to explain it objection? carried both Webster and him forward because he had done his homework. Mr. STEVENS. I temporarily object. so well. Clearly, those characteristics He was a fellow with an independent The PRESIDING OFFICER. Is there are unique and special. We take pride and stubborn streak, somebody who an objection? in New Hampshire in claiming a little was patient and helpful. I enjoyed the Mr. STEVENS. I withdraw my objec- bit of SLADE GORTON for our own. opportunity to serve with him in the tion. As I think of him, I think of a friend, Senate. The PRESIDING OFFICER. Without somebody to whom I could always go He actually was elected to the Senate objection, it is so ordered. talk to get ideas. We talked about his for the first time the same year I was The Senator from New Hampshire is family that he so loved, Sally and his elected to the U.S. House in 1980. We recognized for 5 minutes. children, his grandchildren, his nieces, had an opportunity to be on a panel Mr. GREGG. I thank the Senator nephews. He used to go to hockey discussion way back in 1980 and talked from Washington for the courtesy of league for his niece all the time. She is about our entry into that Congress. recognition. a wonderful hockey player. He is to- One of the things SLADE GORTON told Mr. President, I join with my col- tally committed to his family. me was that he had bicycled across leagues in praising and expressing our It was a pleasure to have the chance North Dakota. I was surprised by that, appreciation for the opportunity to to sit down and talk with him on any but apparently he and his family had work with and know as a colleague in subject, but especially when it came to bicycled all across America. And in this body Senator SLADE GORTON from issues of family and what everybody doing so, they had bicycled across I–94 Washington. I expect to continue to was up to and what everybody was or highway 2 through the State of work with and know Senator SLADE doing. That is the priority for SLADE North Dakota. We had a chance to talk GORTON for many years. But, unfortu- and Sally. At one point, they took a a little about his acquaintance with nately, he will be leaving this body, bike ride across the country, which North Dakota from a bicycle. which is too bad because I consider him must have been an amazing experience, This is not a eulogy. We have a num- to be one of the truly extraordinary the whole family riding across the ber of Members of the Senate who are people I have had a chance to get to country. leaving us, distinguished people who know. He set an example for those of us who have given immense public service to I would describe him as delightful came here after him. As we look this country. I have deep admiration and extraordinary—delightful as a per- around this institution, we often refer and respect for all of them. Because my son, extraordinary as a Senator. He to people: He reminds me of so-and-so, colleague from the State of Wash- brings to this Senate a uniqueness he reminds me of some Senator from ington was talking about her col- which is special. He has a freshness here or some Senator here at some league, Senator GORTON, I wanted to about him, a way of approaching the other date. I must say, I can’t think of come to say that I have enjoyed serv- issues which is always creative and higher praise than if someone were to ing with him. He has been very helpful imaginative. He has true love for this come up to me some day and say: You to me in a range of ways on both the institution. He especially understands know, you remind me a lot of SLADE Commerce Committee and the Appro- its rules and the way it works. GORTON and the way he worked as a priations Committee. I wish him well He is one of the few senior Members Senator. That, to me, would be the as he leaves his service here in the Sen- on our side of the aisle who will sit in highest praise I could receive because I ate. the chair for hours and hours in order consider him to be one of the finest, if I will come to the floor at some point to officiate over the Senate. In fact, I not the finest, Senator I know. to speak about the other Senators who

VerDate 06-DEC-2000 00:57 Dec 08, 2000 Jkt 089060 PO 00000 Frm 00009 Fmt 4624 Sfmt 0634 E:\CR\FM\G07DE6.016 pfrm02 PsN: S07PT1 S11672 CONGRESSIONAL RECORD — SENATE December 7, 2000 have contributed so much and who are terests of the Pacific Northwest. We I have had with the Senator from now leaving the Senate Chamber. are an area that many people do not Washington, SLADE GORTON, in dealing I thank Senator MURRAY for doing understand. It is an area that requires with the problems of the Pacific North- this. She is a remarkable Representa- an enormous amount of personal con- west. tive from her State, as was Senator tact with our constituents in order to I thank the Senate. GORTON. We will now be joined by an- make certain we are on the right The PRESIDING OFFICER. The Sen- other Senator, Ms. CANTWELL, from the track. ator from Montana is recognized. State of Washington, and I look for- Senator GORTON has been to my Mr. BURNS. Mr. President, we find ward to working with her as well. State quite often, along with me and ourselves in a predicament as old The PRESIDING OFFICER. The Sen- my colleague, Senator MURKOWSKI, to friends. Of course, we are this morning ator has used his 3 minutes. Under the try and make certain we are reflecting talking about our friend SLADE GORTON previous order, the time until 12 noon the concerns of our people as we ad- from the State of Washington. In a is under the control of the Senator dress the concerns of the people of the way, we were classmates. We came here from Wyoming, Mr. THOMAS, or his des- State of Washington at the same time. in 1988. Of course, it was not his first ignee. When I came to the Senate, an elder- time here, since he was defeated in 1986 The Senator from Alaska. ly Senator told me that there were two and then came back and won reelection Mr. STEVENS. Mr. President, my types of Senators: the workhorses and in 1988. good friend from Wyoming is here and the show horses. You have to decide We had a lot of things in common— has consented that I might take up to which one you are going to be. not only representing the North- 5 minutes of his time at this time. I It is obvious that an Alaskan has western part of these 48 contiguous ask unanimous consent I be recognized only one choice. We are one-fifth the States. We also have great friendship for that purpose. size of the United States. We have and we served on some of the same The PRESIDING OFFICER. Without more than half the coastline in the committees. I took from him great les- objection, it is so ordered. United States. And we have about the sons about this body and how to rep- Mr. STEVENS. Mr. President, I was same number of people as the smaller resent our constituencies. He and Sally in a meeting with the joint leadership States in the lower 48, in terms of ge- have been friends with Phyllis and me discussing the current problems re- ography, that are much tinier com- for all these many years while he has garding the last appropriations bills pared to our State. been serving in his second and third and was not able to be here during the Senator GORTON, with his back- terms. time set for comments about our good ground, as we heard, coming from the We in Montana have a quality that I friend and my southern neighbor, Sen- east coast originally, very well edu- think will become more and more ad- ator GORTON. cated, very well read, and probably one mired as this country grows and ma- It is with deep sadness that I come to of the most well-read younger Senators tures. We are brutally honest with each join in the comments concerning Sen- in the Senate, has had the problem of other in that part of the world. I spent ator SLADE GORTON. I think he has trying to decide what to do. He, too, my time in business—in the cattle been an exemplary Member of our Sen- decided to become a Senator and is one business and the auction business. Peo- ate and has provided enormous con- whom I would call a workhorse. He has ple will just tell it like it is. If you like tributions to the well-being of the worked doggedly on issues pertaining it, that is fine. If you don’t like it, country in his efforts as a Senator. to his State. His staff is probably one well, that’s the way it is. SLADE GOR- It is and has been a matter of great of the best staffs I have seen work on TON is that kind of a person. He is prob- pride for me to call SLADE and Sally issues pertaining to the Pacific North- ably the most pragmatic of all of our Gorton personal friends. I have visited west. Members with whom I have had an op- with them. We have traveled together When we look at the problems of portunity to serve in this body, and he to other places in the world. It is high- America from the point of view of the is brutally honest. ly necessary for Members of the Senate Senate, we would have to really take I have made speeches before grad- to travel and try to learn firsthand the into account the people Senators rep- uating classes and a lot of other places, problems of other continents, such as resent. The State of Washington has and I am always interested in the way Antarctica, Australia. I remember we given its Senators great flexibility in people treat the history of our country. went to eastern , and we have terms of addressing issues that deal We have revisionists who like to gloss traveled many times into the NATO with the Pacific Northwest and our Na- over some of the warts, the bruises, countries together. It is on those trips tion. There is no question that in his and the bumps this country has en- that we really get to know one another three terms in the Senate, Senator countered in all its history. That is not even better than we do in the Senate in GORTON has been one of the pivotal to say it is not the best country in the Washington. votes in determining the policies of world, but we have historians who tend Of course, my friend and I have been that area. to revise things. able to meet as I have gone through his I know they will be going back to As you know, for those who do not State. Alaskans go through either Washington. And I think we will hear a study history and have little or no in- Utah, , or Washington to get great deal of SLADE GORTON and Sally. stitutional knowledge of our country home from Washington, D.C. Quite They have concerns about the country and the way it was built, one has to re- often, I have spent time in Washington and concerns about our area that are member that we make decisions based State and have visited with SLADE unique. I believe they are going to con- on history and it affects all of us in the GORTON and Sally about the problems tinue to contribute to the solutions to future. I have often said those folks of our area. He has been a fierce pro- the problems that I mentioned before. who tend to revise history also tend to tector of the interests of the State of I am really here to thank him for his tinker with the compass of our Nation, Washington in the Senate. As a west- friendship and for the dignity he has because our decisions are still based on erner, he and I have shared many brought to the office of United States history. SLADE, being the bright and issues and faced the problem of finding Senator. I really believe he showed honest man that he is, understands this solutions to some of these difficulties great compassion as he spent 2 years body and this country so well. He un- that we face in the Pacific Northwest out of the Senate when he was not derstands our history as it truly is, not together. We have worked with our elected after a second term, and he as revisionists would have us believe. friend, Senator MURRAY, on these came back again after 2 years and be- And I hope historians pay him the issues. I think we have had a good came even a greater Senator because of same respect and remember him as the working team together. that. He has been a strong Senator, a great man and great Senator that we We have often, as members of the Pa- thoughtful Senator, a hard-working know today. cific Northwest group in the Senate, Senator, and a great personal friend. As you know, many years ago when had to go head to head with almost I don’t look forward to making state- his family was young and he was a lit- every Member of the Senate and the ments such as this. I certainly don’t tle younger, SLADE took a bicycle trip administration to try to protect the in- look forward to losing the partnership from Olympia, WA, to Boston, MA. I

VerDate 06-DEC-2000 00:57 Dec 08, 2000 Jkt 089060 PO 00000 Frm 00010 Fmt 4624 Sfmt 0634 E:\CR\FM\G07DE6.019 pfrm02 PsN: S07PT1 December 7, 2000 CONGRESSIONAL RECORD — SENATE S11673 said, ‘‘That is a long trip, SLADE.’’ He are advantaged. What is important is Mr. MCCONNELL. Mr. President, said, ‘‘It was. We spent all of it in Mon- the ability to take the information when I think of my dear friend SLADE tana.’’ It is a very long State. In fact, that your lens on the world can see and GORTON, I am reminded of how many of from the Yaak to Alzada, MT, it is fur- put that into a perspective where it has our colleagues are frequently saying: I ther than it is from Chicago to Wash- meaning. That is where wisdom comes wish I were Governor; or, I really ought ington, DC, as the crow flies. in. to be out making some money; or, I am But that tells you something about SLADE GORTON, we would agree by al- really not satisfied being 1 of 100; or, the man, and it also tells you some- most acclamation, is one of the smart- there must be something better I could thing about the family. est Members of the Senate. But he is be doing with my life. Nobody in this body has fought hard- more than that. He is wise. He has the I have heard that from many of our er for property rights, the cornerstone ability to recognize when something is colleagues on both sides of the aisle. I of a free society; fought harder for important and when it should be once asked SLADE GORTON: SLADE, did States’ rights; and for what he offered pushed forward and when it represents you ever think about running for Gov- in education to take the money that a potential consensus; but he has the ernor? And he said: Absolutely not. I flows from what I call ‘‘17 square miles judgment in knowing, in pushing for wouldn’t have that job. He said: I love of logic-free environment’’ to the local the things he is for. In the end, it is the legislative process. communities to let the local commu- seldom good policy and it seldom And no one is better at the legisla- nities decide how to use that money. If makes good public policy to run over tive process than our good friend they need teachers, they could hire people. SLADE GORTON. teachers. If they need bricks and mor- I say to our colleagues, SLADE GOR- I forget which brokerage house it tar, they could build. But the decisions TON is one of the most extraordinary was, but there used to be commercials on how to use those dollars at the local men who has served in the Senate dur- that said, when so and so spoke, every- level should be made at the local level ing my tenure in the Senate. He will be one listened. Whether it was the Re- to fill their needs. Nobody fought hard- missed in the Senate. I believe SLADE publican conference meetings or on er for that. is the kind of person that we grew up those rare occasions when all Members The chairman of the Appropriations as children reading about in history met together, SLADE GORTON was rare- Committee, Mr. STEVENS, a while ago books. I think even in this age of cyni- ly the first one to talk, but when he alluded to the fact that in this body cism about people who serve in public spoke, everyone listened. there are show horses and workhorses. office, SLADE GORTON stands out as ex- SLADE GORTON is one of the great And all of us know that SLADE is a actly the kind of person the founders Senators of the 20th century. He had a workhorse. I will tell you, you couldn’t had in mind when they wrote the Sen- sense of the history of this body. I had hook him wrong, and he worked from ate into the Constitution. I think an opportunity to serve with him re- both sides of the tongue. There will be SLADE GORTON in his record would cently on a committee that Senator some folks who will figure that out and stand up in a comparison to anyone LOTT and Senator DASCHLE appointed some folks who never will. But it is a who has ever served in this body or to select two Senators to be added to quality that every Senator should anyone who has served in any legisla- the portraits just outside the door. For have. tive body ever. about 40 years, we have had five that For those who know and love SLADE I remember his fight to keep Mari- were designated as the five greatest and who have worked with him in ners baseball in Seattle. They could Senators back in the early 1960s or in Washington, it is hard to understand have lost that ball team had it not the mid-1950s. The thought was that we how people back in the other Wash- been for his efforts to save professional would add two more Senators to the ington, a continent away, could not re- baseball in Seattle, because it was im- list. elect SLADE GORTON to the Senate. I portant to him and it was important to SLADE sort of led our side, which con- think it is important to remember the his people. sisted of the majority leader and my- final judgment ultimately comes as He will be missed here. What he self and him, in reaching the conclu- people look in perspective at some- leaves with a lot of us will be used for sion that if we were going to pick body’s service. someone of this century it made a lot many years to come. In my State, our greatest hero, our of sense to pick , We don’t say goodbye to our friends, most beloved citizen, was defeated by who had been chairman of the Foreign we just say so long, because our trails the voters of Texas not once, but twice. Relations Committee and had really will cross later on in our lives. The He was defeated the first time after he made the Truman policy of contain- friendship forged between the Gortons came close to casting the deciding and I will never be forgotten. We will vote, he was on the losing side, on the ment in the development of NATO a bi- miss him, and we wish him well. But Kansas-Nebraska Act which he saw as partisan matter, since there was, in his influence on this body will be felt producing the Civil War. And it did. fact, a Republican Congress right after for years to come. And then as Governor, Sam Houston World War II. SLADE thoughtfully ana- I yield the floor. refused to sign the bill taking Texas lyzed all of the possibilities and rec- The PRESIDING OFFICER. The Sen- out of the Union. So he was rejected by ommended Arthur Vandenberg because ator from Texas. the voters of Texas twice. Yet he is the he thought the single most important Mr. GRAMM. Mr. President, I wanted most honored of our citizens. thing of the second half of the 20th cen- to come over this morning and join my For those who serve in public office, tury was the winning of the cold war. colleagues in talking about our dear it is important to remember that it is Out of all the many things that occur friend and colleague, SLADE GORTON. I not personal; that people change their here, he was able to sort that out and don’t have enough time this morning mind; that people have their own will; come up concisely with what was, in- to list all the things this good man has that people have their own perspective. deed, the biggest challenge of the sec- done for America. It is hard to even In the end, it is good service, it is dedi- ond half of the previous century, the contemplate lifting all of the times he cation, and it is effectiveness on behalf winning of the cold war, and applying has provided critical leadership for the of the people who elect you that makes that to the Senate and coming up with Senate. a great elected public official. an individual on our side of the aisle, The thing that stands out most about I join my colleagues this morning in which was our charge, who would help SLADE is that he is wise. There is a dif- thanking SLADE GORTON for serving. I make that policy bipartisan. And of ference between intellect and wisdom. am confident in the future when names course, it lasted until the Berlin Wall Intellect is, in my opinion, often are listed who belong in the Senate, came down in 1989. That is the kind of overrated. I see intellect as being like names that will be remembered here, thinker SLADE GORTON is. the lens on your camera. The better SLADE GORTON’s name will be on the Out of all the maneuvering that oc- that lens is, the wider your frame can list. curs here, all of which is important, all be on the picture and the finer the de- I yield the floor. of which has an impact on the ultimate tail can be on that picture. So if you The PRESIDING OFFICER. The Sen- outcome, SLADE uniquely could look are blessed to have good intellect, you ator from Kentucky. beyond that and see the big picture and

VerDate 06-DEC-2000 00:57 Dec 08, 2000 Jkt 089060 PO 00000 Frm 00011 Fmt 4624 Sfmt 0634 E:\CR\FM\G07DE6.022 pfrm02 PsN: S07PT1 S11674 CONGRESSIONAL RECORD — SENATE December 7, 2000 sort of bring Members out of our con- Schauder, Lori A. Sharpe, John A. auditor for 2 years. I later served as the tentious decisions in conference about Simmons, Shimon Stein, Tevi D. Troy, attorney general of Missouri after a whatever the particular issue was to Brian Waidmann, Ricky Welborn, and short period of time as an assistant at- see a larger picture of what was not Matt Wylie. torney general in Missouri, and that only in the best interests of our party, The PRESIDING OFFICER. Without was a notable experience. I had the but more importantly, what was in the objection, it is so ordered. wonderful privilege of sharing an office best interests of the country. f with a now Justice of the Supreme He is an extraordinary legislative Court, Clarence Thomas. We were in SERVING THE PEOPLE OF strategist. I know he is going to miss the same room together for 16 months. MISSOURI being in the Senate because he didn’t That is a historic item that I did not think there was a better job somewhere Mr. ASHCROFT. Mr. President, it is understand the history of at the time, else he ought to be doing. Being in the with a sense of deep gratitude that I but I certainly do now. Senate to SLADE was never his second have this opportunity to speak on the I had the chance, after serving 8 choice. It was his first choice. Every Senate floor for one last time before I years as attorney general, of going on one of our colleagues who has been conclude my term in the Senate. There to be Governor of the State of Missouri Governor and come to the Senate says are few compensating factors for the for 8 years. What a marvelous oppor- a Senator who used to be Governor who lame duck session in which we find tunity it was to work with the commu- tells you they like the Senate better ourselves, but one is the opportunity nity, to work with people, to shape our will lie to you about other things. for one who has lost an election to community in a way which was con- That, clearly, was not SLADE’s view. come back and make a few last re- structive and reinforced the things in This was not his second choice. This marks. This sort of makes this like which we believed. was where he wanted to be. home. At home I always have the last This past election obviously was a We are going to miss his friendship. word—‘‘Yes, dear.’’ And to have a last disappointment for me, but I am not He was one of my best friends in the word here is a pleasing thing for me. disappointed in the people of Missouri. Senate and, I would say even if he were Obviously, I am deeply grateful, and, The tragedy of this election, the death not on the floor, which he is, one of the as I think about the opportunity I have of my opponent and his son in a plane two brightest guys in the Senate, the enjoyed to be in the Senate, it is a set crash of unspeakable disaster, was one other one being the Senator from of thoughts that are characterized by that the Missouri community re- Texas from whom we just heard. gratitude. I am grateful to God that we sponded to with two values and virtues But we are not going to lose contact are created as individuals with the ca- that I cherish about our community— with SLADE, many of us. I know there pacity to shape the tomorrows in the value and virtue of compassion. I will be a new challenge for him. He is which we live. If freedom has a defini- want America and Missouri to be a bright and vigorous and committed to tion, it is that—that we can change place of compassion. public service. Someplace, hopefully in things. And, obviously, we want to What a tremendous and wonderful the very near future, there will be an change things for the better. thing it is when people are compas- opportunity for him to continue to America respects that understanding sionate and share the feelings of each make a mark on our wonderful coun- of the creation and how we act as indi- other, and the value of respect, par- try. viduals with a Government that rep- ticularly respect for those who have So we say goodbye to you, SLADE, in resents the people as agents of change, gone on and have been of service. In ex- the Senate, but look forward to con- making decisions about the kind of pressing those values, the people of tinuing our friendship in the years to community we want to have. Any of us Missouri decided they would honor the come. The Senate will certainly be a who has the opportunity to represent deceased Governor by voting in his be- poorer place without your presence. fellow citizens obviously is in a posi- half and in his stead in the election I yield the floor. tion to do great things and to enjoy the rather than voting for me, and I re- Mr. President, I suggest the absence ability to fulfill what God has destined spect them for that and I honor them of a quorum. for us to do, and that is to shape the for that. It is a great community. They The PRESIDING OFFICER. The tomorrows in which we live. are a community to be loved and re- clerk will call the roll. I want to thank the citizens of Mis- spected, and I profoundly love and re- The legislative clerk proceeded to souri first. It is a community that I spect them. call the roll. love and that I respect. Janet and I live I wish well Mrs. CARNAHAN who will Mr. ASHCROFT. Mr. President, I ask in Missouri, obviously because I was succeed me in this seat in the Senate. unanimous consent that the order for raised there, but by our choice. I have I thank her for coming by my office the quorum call be rescinded. had the opportunity to serve the people yesterday. I hope she is treated with The PRESIDING OFFICER. Without of Missouri for 33 years. I began teach- kindness. I told her yesterday that I objection, it is so ordered. ing in Southwest Missouri State Uni- was pleased to see her and have the op- f versity as a way of serving the people portunity to communicate with her, of the State of Missouri. And then, one and I reminded her yesterday that 30 PRIVILEGE OF THE FLOOR of the most important mentors in my days from now she will be my Senator, Mr. ASHCROFT. Mr. President, I ask life, and one of the individuals who per- and I want her to do well. unanimous consent that my entire haps represents what Missouri is and I thank, in addition to Missourians, staff be granted floor privileges for the what Missouri stands for more than my staff. I am delighted the Senate has duration of my remarks. In addition, I any other single individual, the senior agreed to allow them all to be here on ask that Tracie Spingarn, from the Senator of this State, Senator KIT the floor of the Senate during these re- Congressional Special Services office, BOND. marks. When I came to the Senate, my be permitted on the floor for the dura- He accorded me the opportunity to staff and I decided there were values tion of my remarks. The members of serve as the State auditor of Missouri and principles we wanted to honor in my staff are: when he vacated that office upon his everything we did. We wanted those Kris K. Ardizzone, Rachel S. Audi, election as Governor. I had first offered values and principles to transcend cir- David Ayres, Andy A. Beach, Annie E. myself to the people of Missouri to cumstances. We wanted them to be Billings, Cara Bunton, Adam G. serve in the U.S. Congress, and they controlling factors of our conduct. So Ciongoli, Bob Coughlin, Chuck DeFeo, had expressed their profound affection we spent some time together. Mark Grider, Greg P. Harris, Jacob for me, indicating that I should stay in Early in my time in the Senate, I Herschend, Chris Huff, Jessica Hughes, Missouri and not go to the Congress. came to the floor of the Senate and David James, Sally Lee-Kerns, Eliza- KIT BOND, recognizing that, appointed placed in the CONGRESSIONAL RECORD beth Kim, Kelly D. Kolb, Taunya L. me to be the State auditor of Missouri. this statement of service, commit- McLarty, Caleb Overstreet, Smita It began a marvelous set of opportu- ment, and dedication that each mem- Patel, Janet M. Potter, Jim Richard- nities for me for which I am grateful in ber of my staff joined me in formu- son, Susan Richmond, Andrew every respect. I served as the State lating. This one hangs near the desk of

VerDate 06-DEC-2000 01:50 Dec 08, 2000 Jkt 089060 PO 00000 Frm 00012 Fmt 4624 Sfmt 0634 E:\CR\FM\G07DE6.024 pfrm02 PsN: S07PT1 December 7, 2000 CONGRESSIONAL RECORD — SENATE S11675 Annie Billings in my office. I asked has been one that has been a fulfilling souri, KIT BOND, and with others who each staff member to sign this commit- experience, in sum because we have have also been concerned about this ment and then I signed the commit- been able to achieve things that are problem. ment, too, so each one of these items very important, in other respects as a Senator FEINSTEIN’s State of Cali- contains the signature both of the result of the relationships that come fornia, similarly, has been afflicted staff, the real workers of the Senate, with the friendships in the Senate. with the curse of methamphetamines, and the Senator, at least in this case, I have the very pleasing opportunity and she was always helpful in this re- who relied so heavily on their work. to think of myself as a friend of each spect. And we could not have done it I did not want to set the standards Member of the Senate, and I am grate- without Senator HATCH, the chairman for my office absent the staff’s partici- ful for that. I am particularly grateful of the Judiciary Committee, on which I pation because I believed the staff for the leadership that has been kind to have had the privilege of serving. would help me reflect profoundly the me. For Senator LOTT—and, of course, May I digress for just a second to say values of the people of Missouri—and, I have had a lot of fun with Senator I have had the privilege of serving indeed, they did. Each member of my LOTT as a Singing Senator. That has under Chairman HATCH. I respect him staff took the pledge, the pledge that is ruined more than 1 day for other peo- and am grateful for his leadership on contained in this statement of service, ple—but the leader has been kind to me the committee. There are a tough set commitment, and dedication—high in every respect. His demeanor in lead- of circumstances that always involves standards of service. ing this body is one of kindness to us in the tensions of give-and-take, and Our pledge states, and I will read every Member. he has masterfully negotiated the part of it: Senator NICKLES—I had the privilege shoals in that particular arena. We dedicate ourselves to principled public of nominating him as assistant major- Of course, I should mention as well policy. We believe that Americans are en- ity leader, and I respect greatly his JOHN MCCAIN’s leadership on the Com- dowed by their Creator with certain contribution. merce Committee, on which I have had unalienable rights, and among these are life, the privilege of serving, and his gra- liberty and the pursuit of happiness. The I see my friends in the Senate today—Senator GRAMM, Senator ciousness to me and kindness to me power we exercise is granted by Missourians and his direction in a committee which MCCONNELL, in addition, of course, to and the American people; we serve to secure has achieved massive revisions in the their rights. Our commitment is to respect the senior Senator from Missouri about diverse political views and serve all people whose service I have already remarked, kind of liberating renovation which has provided tremendous energy to Amer- by whose consent we govern. and my colleague, Senator SANTORUM, As people of liberty reach for opportunity with whom I have had the opportunity ican industry. The revision in the tele- and achieve greatness, our Nation prospers. to fight for things in which we believe. communications law which we were A government that lives beyond its means able to achieve is a result of excellent and reaches beyond its limits violates our These are all very pleasing items. In particular, I thank Members of the leadership. It has changed the dynam- basic liberties, and the Nation suffers. We ics of the world’s economy, not to men- dedicate ourselves to quality service. Amer- Senate for participating in very impor- ica’s future will be determined by the char- tant legislative achievements that are tion the United States. But I go back to some of the specific acter and productivity of our people. In this a part of what I believe has been impor- legislation. respect, we seek to lead by our example. We tant for me to do while I have been will strive to lead with humility and hon- This year, we enacted legislation to here. provide funding so that the survivors of esty. We will work with energy and spirit. I had the privilege of filing legisla- We will represent the American people with slain law enforcement officers could loyalty and integrity. Our standard of pro- tion to protect the Social Security have the opportunity to get education ductivity is accuracy, courtesy, efficiency, trust fund, called the Social Security and training so that they could in some integrity, validity, and timeliness. We hold lockbox legislation. I believe I was the way begin to undertake an effort on that these principles are a sacred mandate. first to do that in the Senate. Senator their own behalf, which the law en- We take responsibility for these standards. ABRAHAM, Senator DOMENICI, Senator forcement officer, slain in the line of I thank my staff for helping me for- SANTORUM, and I worked awfully hard duty, was otherwise prepared to help mulate that format for our service, and for that concept. It is now part of the them with. I am thankful to Senator I thank them for, in every instance I Senate rules, and it has guided the way SPECTER and Senator COLLINS and Sen- know, pursuing the fulfillment of that in which we have appropriated re- ator BIDEN for working and being so format and formulation for public serv- sources. helpful to me in that respect. ice. It is an honor to serve with indi- The Medicare lockbox passed the Tougher penalties for gun crimes: viduals who are in pursuit of principle, Senate. I am grateful for that oppor- When I put the amendment into Sen- and my staff has been consistent in tunity and was grateful that Senator ator HELMS’ law, which was moving that respect. CONRAD, on the other side, was inter- through this body, for tougher criminal We have literally in the last Congress ested in making sure we put the right penalties for those who use guns in the had over 550,000 constituent contacts framework around the Medicare trust commission of a crime, it could not with our office, to which we have made fund so that it was not raided for other have happened without Senator HELMS’ millions of responses because fre- purposes. measure. Of course, as the chairman of quently we can acknowledge the con- An effort to repeal the Social Secu- the Foreign Relations Committee, on tact and then provide additional serv- rity earnings tax—the test on the So- which I have had the opportunity to ice or otherwise follow up. There have cial Security earnings—which we were serve, I have learned to respect Senator been 110,000 specific cases in which in- able to achieve in April of this year HELMS, his gentlemanly character, and dividuals had dealings with the Federal under the leadership of Chairman his generous and judicious approach to Government, and we were able to fa- ROTH, and signed by the President, I running the committee. cilitate those dealings. So I thank the had the privilege of being the Senate I worked with BILL FRIST on cur- staff. I thank them for their dedication sponsor of that measure. There were tailing weapons in schools and making to principle and for understanding that about 45 Senators who joined together, sure we could provide penalties for working with humility and integrity but there was even overwhelming help those who carried guns into schools or and industry and timeliness is a way of from people on the other side of the maintained guns at schools. It could fulfilling a sacred trust in the people of aisle, such as Senators LANDRIEU, FEIN- not have happened without him. my State. STEIN, BAUCUS, DORGAN, LIEBERMAN, I think of the late Senator Paul I thank the Members of the Senate. and LINCOLN, in addition to members of Coverdell and his efforts on education This is an institution that is unique. this caucus. flexibility, sending resources to the The function of the Senate is a very A big problem in the State of Mis- State. I was thrilled to have the oppor- frustrating one, and real fulfillment souri has been methamphetamines. tunity to work with him and Senator probably is found in the friendships of Over and over again, I have worked to WYDEN and Senator FRIST on that leg- the Senate more than in the function strengthen the law regarding islation. It was very important legisla- of this body. I have to say that this op- methamphetamines, both with my col- tion across the aisle, but it would have portunity for my service in the Senate league, the senior Senator from Mis- an impact across America.

VerDate 06-DEC-2000 00:57 Dec 08, 2000 Jkt 089060 PO 00000 Frm 00013 Fmt 4624 Sfmt 0634 E:\CR\FM\G07DE6.027 pfrm02 PsN: S07PT1 S11676 CONGRESSIONAL RECORD — SENATE December 7, 2000 Then on the legislation to end food committees were doing, he fulfilled his school senior generally likes a dad and medicine embargoes, I think this is responsibilities with fairness, with dig- around. I am not sure I would say he a major step forward for America— nity, with respect, and with the public always wants me around, but there was good foreign policy, good farm policy, interest as the uppermost criteria. I a little bit of a dislocation of the fam- and expresses the values of the people am grateful for that. ily. of this country. Working with Senator Obviously, I do not want to overstate But dislocations are worth our effort. DODD and Senator DORGAN, and on our what it means to have been a Singing Perhaps the most important thing my side, Senator HAGEL and Senator ROB- Senator, but it was a tremendous op- father taught me was that there were ERTS—and Senator WELLSTONE joined portunity to spend time on Tuesday more important things than me, and in that effort—the Senate overwhelm- mornings, before the workday began, the ability to make sacrifices to get ingly worked together to get that done. rehearsing and seeking perfection—elu- good things done is important. When Now that it is a part of the law of this sive perfection—which never attended we understand there are some things country, I think it is a major step in our efforts. But we never lost our faith that are more important than we are, the right direction. for it. we have a willingness to make sac- I was pleased to be able to work with I thank the Singing Senators for al- rifices. I thank my family profoundly— TOM DASCHLE, the minority leader of lowing me to be a part. We did travel my wife Janet, my sons Jay and Andy, the Senate, to make sure that the U.S. over a good bit of the United States my daughter Martha, my son-in-law Trade Representative had a full-time, from one time to another. We raised, I Jim, and my grandson Jimmy. I thank permanent ag ambassador so agricul- think, well over a half million dollars them for being willing to understand tural interests were not neglected for the Alzheimer’s research effort. It that when there are things more im- when negotiations were made regard- is one of those things that otherwise portant than we are, we can sacrifice ing trade. provided a little squirt of WD–40, where those things and recognize in our lives Over and over again, I think of things the friction might otherwise have made our willingness to set aside our per- that happened this last year, such as things less pleasant. It lubricated the sonal agenda for the public good. when HCFA, the Health Care Financing relationships and gave us a great op- It is my hope that if and when I ever Administration, announced new rules portunity. have an opportunity to serve again, I for reimbursing cancer care treat- I have recited a lot of important will be able to serve in accordance with ments. I thought of the millions of peo- things that went into law. I am very those principles, with the values that ple around the country who lived in close to concluding my remarks. I just my staff and I had the privilege of de- rural areas who would find their care want to say this: I do not want anyone veloping, always understanding that curtailed. Senator MACK of Florida to think the law is the most important the public good is an objective well worked with me to make sure we were thing in America. What happens in worth pursuing, not just pursuing but able to begin the process of changing families, in churches and civic organi- well worth sacrificing for, because the law. And the process was so suc- zations, the values people believe in when we sacrifice for each other, we cessful that HCFA changed its rules their hearts, is more important than communicate the most important val- and regulations. Sometimes that is the the laws we write on the books. ues of our culture, that we love and re- way we make progress. I don’t want anyone to ever believe spect one another. There are the big things we have the laws are not important. We do have I thank the Chair for the oppor- done. Some of these are a litany of to have laws that tell us what the base- tunity. I know he has foregone the things that are more incidental. There lines are of our culture and, if you fall time limit on my behalf. I thank each are the things such as welfare reform. below those, we will punish you, what Member of the Senate, this very impor- I think of PHIL GRAMM’s work, Senator the framework is in which we operate. tant body in preserving liberty, for its GRASSLEY’s work, and Senator ROTH’s But no culture ever really achieves courtesy and kindness to me and for work there. This was early during my greatness by everyone just being at the this last opportunity to speak. term. I had the opportunity to craft a baseline. Cultures achieve greatness The PRESIDING OFFICER (Mr. FITZ- provision called charitable choice that not when people just stay out of jail GERALD). Under the previous order, the welcomed nongovernmental agencies but when they soar to their very high- time until 12:30 is under the control of into the process so that we could begin est and best, not when they just ac- the Senator from Florida, Mr. GRAHAM. to remediate the pathology of welfare commodate our threshold of the lowest The Senator from Missouri. in the country, abusive welfare, by and the least. Mr. BOND. Mr. President, might I making sure that we helped all of The greatness of this great Nation is ask the indulgence of my good friend America address this problem, not just to be found in the hearts of the Amer- from Florida to take perhaps 5 min- America’s government. ican people more than in the books of utes. It was a wonderful thing to see its the American Government. But those Mr. GRAHAM. Mr. President, I am broad bipartisan acceptance. It was items of policy and framework that we pleased to yield such time as my col- very pleasing to see in this last Presi- have put there guard the opportunity league and friend from Missouri would dential election that Governor George for greatness that comes from the like and to add my accommodation to W. Bush of Texas made this a point of heart of the American people. So our the service of Senator ASHCROFT and what he would provide in the welfare law and Constitution and the decisions for the remarks he has presented to the arena, as did Vice President GORE. we make are fundamentally important. Senate. I had the privilege of chairing several It has been a great privilege for me to The PRESIDING OFFICER. The Sen- subcommittees. I am grateful for the be involved. ator from Missouri is recognized for 5 opportunity to have done so. In par- I thank one last group of people, and minutes. ticular, with Senator FEINGOLD, I that is my family. If we didn’t believe Mr. BOND. Mr. President, I thank my chaired two subcommittees. I chaired in these very important principles, I former gubernatorial colleague. There the Africa Subcommittee of the For- wouldn’t have had the opportunity to are far too few of us former Governors eign Relations Committee and the Con- ask them to make the sacrifices they in this body, and it was my pleasure to stitution Subcommittee of the Senate have made. My wife Janet has been serve with the Governor from Florida, Judiciary Committee. willing to dislocate her career time who is now the Senator from Florida. I have to say, I have never had a bet- after time when changes in my life It is a very melancholy time for me ter working relationship with any indi- have moved me from one place to an- to rise today to pay my respects and vidual than with Senator FEINGOLD in other. She has taught at Howard Uni- honor and to offer sincerest thanks to that respect. Never did he ask me to do versity in Washington, DC, on the fac- a friend who is probably my closest col- something that I thought was unfair ulty for the last 5 years now. I am league in politics. We have been and that I could not do and that I grateful for that. My son, when I first through a lot together. I lost a couple would not do. In each instance, when I came to the Senate, was still in high races as well as winning some. I can offered him an opportunity to partici- school, and we divided our family for tell you, it is not fun. In fact, it is real- pate in a broad range of what the sub- that year so he could finish. A high ly terrible. I know what it is like.

VerDate 06-DEC-2000 00:57 Dec 08, 2000 Jkt 089060 PO 00000 Frm 00014 Fmt 4624 Sfmt 0634 E:\CR\FM\G07DE6.031 pfrm02 PsN: S07PT1 December 7, 2000 CONGRESSIONAL RECORD — SENATE S11677 After my last loss, a good friend Working together at the staff level, Florida, Mr. GRAHAM, is recognized for came up to me and slapped me on the we had great staff efforts. I express my 30 minutes. shoulder and said: Well, experience is thanks to his staff as well because we Mr. GRAHAM. Mr. President, I yield what you get when you are expecting worked jointly together and managed such time as he would use to my friend to get something else. to do a lot of good. We sincerely appre- and colleague from North Dakota. I don’t know what that proves, but I ciate the service the staff has provided. Mr. DORGAN. Mr. President, let me, have had experience, and I know JOHN We fought the battles. I should note for 1 minute, add my voice to those has had experience. It hasn’t made him for our colleagues who are not soon today who paid tribute to Senator bitter. Every time he has had an expe- going to forget our efforts on behalf of ASHCROFT for his service in the Senate. rience, it has made him better. the Missouri River, we appreciate their As I indicated earlier, some think be- Last night I had the pleasure of join- indulgence. That issue of controlled cause we are engaged in heavy debate ing him for ceremonies at a Christmas flooding on the Missouri River was from time to time that we are not celebration to collect toys for tots in very important to our State, and we friends. Across the aisle, Senator the Marine Corps effort. Now, there fought that battle. We appreciate the ASHCROFT and I worked on a piece of was some singing. And the host who suffering of our fellow Senators. legislation, one which we passed early heard both of us sing sort of gave me a There is no better measure of a man on when he came to the Senate dealing speaking role and gave JOHN the re- than how he handles adversity. It is with Federal funding of physician-as- sponsibility to lead the singing. There something you don’t want to experi- sisted suicide. We worked together, and is no question that I will not try to ence but when you do, how do you it was passed. It is now law. take his place in the Singing Senators. react? Do you get bitter or do you get We worked a great deal for a long pe- That is going to be a loss. better? showed the no- riod of time on lifting sanctions with But there are a lot of other ideas, a bility, the character, and the honor respect to the sale of food and medi- lot of other fond memories that come that has been his trademark through- cine. It is a fight that will continue back to me. When JOHN ASHCROFT fol- out. even after Senator ASHCROFT leaves lowed me in the State auditor’s office, When he conceded the election and the service of the Senate. he continued the effort to clean up the there were those who wished to mount Also, a couple of times, I joined Sen- mess of the State auditor’s office, a legal challenge, he wasn’t going to ator ASHCROFT and the quartet on the something I chided him about fre- stand for it. He would not tolerate it. Republican side with the Singing Sen- quently. He went on to be attorney The people of Missouri had spoken. He ators, along with my colleagues, Sen- general, my second term as Governor. views his job as one of service to the ator DASCHLE and Senator BOXER. I During his first time, I had taken an people of Missouri—not one of using think on one other occasion I joined involuntary hiatus from the Governor’s legal challenges and court challenges Senator ASHCROFT and the quartet. I office. I had one of my experiences. to try to win what the polls had shown. have seen Senator ASHCROFT in action I came back and he was my counsel, I can tell you that as I have traveled in a number of ways. my lawyer, kept me out of trouble for around the State there is one over- My expectation of his public service 4 years. Then he served 8 great years as whelming message Missourians have; is that it is not at an end. I appreciate that is, thank you, JOHN SHCROFT a very effective and farsighted Gov- A . the service he has given to this country Their esteem for you has grown. People ernor of the State of Missouri. I will and to the Senate. I appreciate having shake their heads, and say: Why didn’t not impose on the Senate’s time to go had the opportunity to work with him. he fight? Why didn’t he do something? down the list of accomplishments. I know him to be smart and tough and I said: Look. He wants service to go One of my favorite programs is Par- tenacious on the issues about which he forward. They are very proud of the no- ents as Teachers. This is a wonderful cares deeply. I wish him well. bility he showed. But they are con- early childhood program that has revo- Mr. GRAHAM. Mr. President, my pri- fident, as I am, that new opportunities lutionized early childhood education in mary purpose this morning is to make will be arising for him. They wish him Missouri. We managed to get it on the some remarks relative to my retiring well—with his experience, commit- books and kind of bring it to life. But colleague, CONNIE MACK. But while he ment, and his solid faith. JOHN ASHCROFT was the one who funded is still here, I would like to also ex- There will be many areas where JOHN it, nurtured it, encouraged it, made it press my admiration for Senator ASHCROFT will serve. He has too much flourish to become a national model to offer. And I look forward too—I ASHCROFT. Senator DORGAN talked about some and even an international model. It has admit—with awfully mixed emotions to of the times they worked together. gone to six or seven other countries, seeing him take a new role and new re- Those are always rewarding, and they last time I heard, because it works. sponsibilities. And because of his strong leadership, it On behalf of my fellow citizens of help build relationships. I have had was successful. Missouri, I say thanks for the first 33 some of those times with Senator With his long experience in Missouri, years of service to the State. We are ASHCROFT. I have also had some times it is no surprise that when he came to not finished with you yet. There is a when we disagreed—such as on the Washington he said he was going to lot more to be done, and you are the same issue that Senator DORGAN re- Washington not to bring Washington one to do it. ferred to as the wisdom of our policy ideas back to Missouri but to bring For me personally, I know what you towards Cuba. In those times of dis- Missouri values, views, and good ideas and Janet have gone through. And I am agreement, you also learn something to Washington. He has clearly done very proud of the way you have han- about the character of the person. I that. dled it. Your friendship will always found Senator ASHCROFT to be a person There are many accomplishments we mean a great deal to me, and the who listens to what the other side could cite about his service. He has shared time that we have had together thinks is the proper course. He mentioned a few of them. The meth- in this body is particularly special. wouldn’t necessarily agree with it, but amphetamine problem became a very When they close the service and the he would take it into account and serious problem in Missouri in the benediction at my church in Missouri, would try to use that as the basis of early 1990s. We worked together, he on the minister says: The service is over, finding a broader common ground. the Judiciary Committee, fashioning and now it is time for the work to Those are important qualities which laws. He helped me secure appropria- begin. For JOHN, the service is over for I think our colleague, CONNIE MACK, tions to deal with this scourge. It was now right here. But let the work begin. also represents and which I will discuss a terrible tragedy for too many Missou- JOHN, thank you from the bottom of in a few moments. But I wish to extend rians. His work on behalf of ending the my heart, and very best wishes to you, my best wishes to Senator ASHCROFT food and medicine embargo was just Janet, and your family. who I did not have the opportunity to one more step in opening the markets I thank the Chair. I particularly serve with as a Governor, but I admire that our farmers and, indeed, our en- thank my colleague from Missouri. his service to the State of Missouri and tire world economy needs so they can The PRESIDING OFFICER. Under to America in many ways. I wish him be healthy from the export markets. the previous order, the Senator from well for a happy, rewarding future.

VerDate 06-DEC-2000 00:57 Dec 08, 2000 Jkt 089060 PO 00000 Frm 00015 Fmt 4624 Sfmt 0634 E:\CR\FM\G07DE6.033 pfrm02 PsN: S07PT1 S11678 CONGRESSIONAL RECORD — SENATE December 7, 2000 SENATOR CONNIE MACK not just being invited; he was being in- able to claim a small measure of cred- Mr. GRAHAM. Mr. President, the vited by his step grandfather, a Demo- it, but none more so than Senator Constitution of the United States pro- cratic Senator from Texas, Tom MACK. No Member of this body has vides that each State, regardless of Connally, one of the most prestigious worked harder to build the coalitions other circumstances, will have two Members of this body, particularly in based on understanding of the impor- Members in the Senate. It says nothing the period of World War II. tance of the issue and the opportunity about how those two Senators will get While attending this Democratic which we had as a nation to roll back along. Sometimes they don’t. luncheon at the national convention, the barriers of disease than Senator I think we had a good demonstration young 7-year-old CONNIE stood up and MACK. a few moments ago with the very began yelling ‘‘I’m a Republican; I’m a In the future, when science beats heartfelt comments of Senator BOND to Republican.’’ That behavior, needless cancer, we will look back and thank his colleague, Senator ASHCROFT. They to say, earned him the wrath of his Senator MACK who worked with many are two Senators who have a very step grandfather who threatened to others, particularly Senator ROCKE- close, constructive relationship for the call the police if the display was not FELLER, to allow Medicare payments people of their State. terminated. for clinical cancer trials. These are It is my pleasure and my honor to be Now, despite this highly partisan major achievements and they required able to say the same relationship has launch to CONNIE’s political career, the support and hard work of both par- existed for the last 12 years between Senator MACK and I have been working ties. myself and Senator CONNIE MACK. I am together in the closest manner for It is no secret that this Congress has proud to call CONNIE a friend, and I am what is best for Florida and for the Na- had few such serious legislative accom- proud to have served with him as a col- tion. plishments. How can we enact any in- league. Just a few of the items on which we novative legislation when we can’t There are a number of reasons that both take considerable pride, in our even agree on the future bills such as may have led to this good relation- joint efforts we have battled against the remaining appropriations bills that ship—one of which is that we have a offshore drilling in Florida. We battled we must pass to keep our Government great deal in common. for a highway funding formula that running? We are now 10 weeks beyond We both grew up in a Florida which takes into account States with rapidly the beginning of the fiscal year and was undergoing massive change. When growing populations. As a team, we still have much necessary work to be Senator MACK and I were born in the worked to help rebuild Dade County done. Certainly there is plenty of late 1930s, the State of Florida had a after the devastation of Hurricane An- blame to go around for this overly long population of about 1.5 million. As we drew in 1992. session, and it is hardly a surprise that start the 21st century, Florida has a We are particularly proud of our suc- the American people are tuning out population of over 15 million. That de- cess in filling Federal judicial vacan- while we battle inside the beltway over mographic change has brought a cies, which is a direct result of co- issues that seem to affect no one other floodtide of other economic, cultural, operation of working together to put than ourselves. social, and political changes to our quality judges on the Federal bench, Senator MACK has always said it State. They have affected both Senator not judges of a particular political doesn’t have to be that way. And he MACK and myself as we have seen and party. We interviewed applicants to- has lived up to that creed. He was a participated in those changes. gether. We made joint recommenda- founding member of the Centrist Coali- We went to the same college. We are tions to the Judiciary Committee. We tion when it came together in 1997 to both graduates of the University of cointroduced the nominees to the com- stop the hemorrhaging of annual fiscal Florida, and we share a deep, abiding mittee. And we applauded, together, deficits. interest in that institution. It is my when they were confirmed on the Sen- One of the other areas in which he hope that there will be a very appro- ate floor. I am very pleased in the last should justifiably take great pride is priate tribute to Senator MACK, and 4 years the Senate has confirmed 15 his contribution to bringing America that there will be an institute at our Federal judges from Florida. from an era of accumulated national alma mater which will symbolize and Our close cooperation isn’t limited to debt to one in which we are starting to continue his deep commitment to the just the two of us. Our staffs have pay down the debt. To a lesser degree, work of science and health. worked closely together on issues of we will be asking CONNIE’s grand- Our personal lives have also over- mutual importance. And most re- children to be paying our credit card lapped. We both had the good fortune cently, in fact, the last act of the Con- bills. of marrying substantially above our- gress before it recessed for the election Maybe we have heard too many times selves. Adele, Priscilla, CONNIE, and period, we helped participate in legisla- that nice guys finish last. I submit myself have grown to be not only tion that will forever cement Senator Senator MACK proves that adage to be neighbors living across the street on MACK’s legacy, the restoration of dead wrong. Nice guys, in fact, get re- Capitol Hill but also very close per- America’s Everglades. sults. Those who can’t get along with sonal friends. CONNIE should be justifiably proud of their colleagues get gridlock. And the We are about the same age. We have each one of these and many other ac- American public pays for their pos- now been blessed with a growing num- complishments. But I suggest he would turing. ber of what is one of life’s greatest be most proud of the fact that he There is another danger in the cul- gifts—grandchildren. I believe if you worked hard at, and made it look easy, ture of swagger that has too often ask either of us what our favorite title bipartisanship. CONNIE is a consum- characterized this Congress. That dan- is, it would probably be the title of mate gentleman, a man of unwavering ger is arrogance. Somehow, many grandfather. civility in a body that often yearns for Members have convinced ourselves that But we have also had some dif- more of that quality. This is no small the reason we can’t reach an accommo- ferences. Lest we try to ignore the big matter. dation is not that we haven’t really white elephant in the living room of re- In today’s political world, we shrug tried and not because we are playing lationships between myself and CONNIE; off a notion of being polite, as if it is a politics; instead, the problem is simply indeed CONNIE is a Republican. He is relic from a world that no longer ex- that we are completely, totally, right, very proud and loyal to his party. In ists. But being polite is far more than and the other side is wholly and ut- fact, recently CONNIE told me a story knowing your table manners. Civility, terly wrong. which indicates the risk he was willing collegiality, and respect are the build- Now, clearly that attitude is not con- to take in support of his party. At the ing blocks of political bipartisanship. ducive to getting much done on a bi- early age of seven in what was clearly And bipartisanship, in turn, is the partisan basis. The easy excuse for ar- a foreshadowing of what was to come, foundation of constructive legislation. rogance is that we were elected for our young CONNIE MACK was invited to the When funding for the National Insti- opinion and to change them would be a Democratic National Convention which tutes of Health advances, many Mem- betrayal to our constituents. But Sen- was being held in . He was bers on both sides of the aisle will be ator MACK has found a better way, a

VerDate 06-DEC-2000 00:57 Dec 08, 2000 Jkt 089060 PO 00000 Frm 00016 Fmt 4624 Sfmt 0634 E:\CR\FM\G07DE6.036 pfrm02 PsN: S07PT1 December 7, 2000 CONGRESSIONAL RECORD — SENATE S11679 way that I describe as nonarrogant Lawton Chiles. When the campaign was felt so strongly about Slade’s reelec- self-confidence. That is not an over, we vowed to work together. This tion. He is, and always has been, an oxymoron despite how it may occasion- has been an easy commitment to fulfill oasis of inclusion, encouragement, and ally appear when this room is filled because CONNIE MACK is a fine person, support for women in the workplace. with enough hot air to melt the polar as he is a fine representative of his He is one of those people who know ice cap. Nonarrogant self-confidence is, State. how to encourage, how to mentor, and in fact, a foundation for public service. He is blessed with a sense of humor. how to help women and men reach Nonarrogant self-confidence is the He understands that the business we their full potential. product of sustained and diverse life conduct is serious, but he does not take That certainly has been true in my experiences prior to and during a polit- himself too seriously. He is hard work- own case. Even before I was sworn in as ical career. It is the ability to look be- ing, an always reliable coworker. I a new Senator some 4 years ago, SLADE yond one’s world, to reach out to peo- have walked out of meetings with took me under his wing with advice on ple of different beliefs, different values, pages of notes and reams of paper. everything from choosing my com- different backgrounds. It is not a per- CONNIE generally writes down little. mittee assignments, to selecting my son who wakes up every morning and But when we divide assignments, with- office space, to hiring my staff. He has puts his proverbial finger in the wind out fail he completes his homework, continued to give me invaluable advice to see which way it is blowing and de- generally before I do. He not only re- on a host of issues ranging from what cides what his position will be that members the names of various mem- our policy should be in Colombia and day. It is the quality of having the bers of my staff, he recollects the Kosovo, to how to take a different ap- strength to hold well-grounded opin- schools they went to and the football proach to education spending, to how ions and values, and yet to be open and teams they support. to succeed in a tricky procedural situa- persuadable in the face of new informa- Senator MACK is devoted to his fam- tion. tion and logical arguments. Non- ily. In fact, I have said that CONNIE and SLADE has always been someone to arrogant self-confidence is the ability Priscilla Mack are the living embodi- whom I could turn for advice, for an- to be a leader in your party, but not ment of family values. Adele and I have swers, for good counsel. It has also necessarily a follower of the party line. been honored to call the Macks friends been my pleasure to work with SLADE This is how CONNIE MACK has worked now for well over a decade. We have GORTON on a host of issues such as edu- throughout his tenure in the Congress, compared notes on our children and cation, children’s health care, and the and it is a model to which we should all grandchildren. We have watched our cost of prescription drugs. What I ad- aspire. It could be that confidence con- families grow and grow up. mire most about SLADE is his intellec- vinced CONNIE MACK of the importance For his legislative and personal tually rigorous, challenging, and cre- of playing by the rules which we have qualities, Senator MACK will be sorely ative approach to public policy. He so carelessly shunted aside in this ses- missed. I call on my colleagues, col- simply does not go along with the con- sion of the Congress. CONNIE is a leader leagues from both sides of the aisle, to ventional wisdom; he challenges it, of his party, a key member of the join me in tribute to our friend Senator constantly seeking new ideas and inno- Banking and Finance Committees, and CONNIE MACK, his wife Priscilla, and vative approaches to solve thorny prob- has served as chairman of the Joint the Mack family. lems. Economic Committee. In all of these CONNIE, while they call what you are A perfect example of SLADE’s innova- positions, he has had a respect for the doing retirement, I prefer to think it is tive style was his development of an process of senatorial decisionmaking. more like you are being traded to an- entirely new approach to Federal edu- He has been confident enough to let other team, a practice in which your cation policy, one that recognized that what he believes is right to be in full grandfather participated on a regular local school boards, parents, and teach- view of the American people. basis, or maybe playing another posi- ers know best what their children need. Now, few would argue that the proc- tion. I have no doubt you will continue As the architect of the Straight A’s ess we have is cumbersome and, frank- to work hard for the people of Florida bill, SLADE has been a leader in edu- ly, often dull. We rarely hear of some- and America. We will all be a better cation in the Senate. I was very proud one setting up a VCR or rushing home and especially a healthier nation be- to cosponsor his innovative effort to after work to catch our latest pontifi- cause of your commitment and Pris- bring academic achievement and ac- cations on C–SPAN. But the serious- cilla’s commitment. May your next countability to our public schools. ness of this process has added purpose. step bring you as much personal and SLADE realized that when the Federal Time and public debate are the key in- professional satisfaction as your days Government gives money to local gredients that go into solid, sustain- in the Senate have brought to all of us. schools, it should not come with dic- able public policy. Legislating behind Mr. President, I suggest the absence tates from D.C. on how it should be closed doors is breaking our promise to of a quorum. spent. He understood that it should, the American public, the promise that The PRESIDING OFFICER. The however, come with an expectation of if they, the American people, made the clerk will call the roll. results, and that is why he worked so effort, their voice would be heard and The senior assistant bill clerk pro- hard to give local school boards, par- would influence public policy on Cap- ceeded to call the roll. ents, teachers, and administrators, the itol Hill. The rules of this body rely on Ms. COLLINS. Mr. President, I ask freedom to decide how best to spend keeping promises in an informal way as unanimous consent that the order for Federal money in exchange for holding well as formally. the quorum call be rescinded. them accountable for improving their We must all be able to trust that our The PRESIDING OFFICER. Without schools. He changed the entire focus of colleagues will do as they say and vote objection, it is so ordered. Federal education policy from being fo- as they claim to do. CONNIE MACK is a f cused on paperwork and process, to in- man of his word. He keeps his promise stead being focused on how much our to his colleagues. He keeps his promise SLADE GORTON students were learning, to a focus on to the people of Florida. Ms. COLLINS. Mr. President, I am student achievement and results. CONNIE’s strength of character, his delighted today to join my colleagues SLADE has also been an advocate for respect for this institution, and his in paying tribute to a truly out- children’s health. Not only was he an ability to reach across party lines be- standing United States Senator, and early supporter of the Children’s came apparent to me early in our time that is SLADE GORTON. Health Insurance Program, the S-CHIP together in the Senate. Our service in During SLADE’s recent campaign, I program, but he has also worked for the Senate overlapped with his last had the privilege of going to Seattle to years to increase Federal research dol- term in the House in 1987 and 1988. I got speak at a luncheon organized for him lars toward autism. That hard work is to know CONNIE when he came to the by women who had once worked for about to pay off because his autism bill Senate after the 1988 election, when he him in the Senate and in his capacity was included this year in the omnibus won the seat that had previously been as attorney general. I was not at all children’s health bill which was signed vacated by Senator, later Governor, surprised to see so many women who into law last month. It will direct more

VerDate 06-DEC-2000 02:05 Dec 08, 2000 Jkt 089060 PO 00000 Frm 00017 Fmt 4624 Sfmt 0634 E:\CR\FM\G07DE6.038 pfrm02 PsN: S07PT1 S11680 CONGRESSIONAL RECORD — SENATE December 7, 2000 Federal dollars toward finding a cure Passage of this portion of the bill prove the quality of life for elderly and and treatment for autism. would not have been possible without residents of HUD-assisted properties SLADE GORTON has had an impact on the help of Senators KERRY, EDWARDS, and other eligible people in the neigh- this Senate in so many ways. Whether BAYH, and SHELBY, and their respective borhood. it is serving as a valued mentor to staff, namely Lendell Porterfield and The legislation also includes impor- more junior Senators, such as myself, Josh Stein. I would like to thank all of tant reforms to the manufactured or being the architect of very impor- these individuals for their contribu- housing statute. These reforms provide tant legislation or shepherding appro- tions throughout the process of writ- significant new consumer protections priations bills through an incredibly ing, negotiating, and passing this legis- for owners of manufactured homes. For difficult procedural morass, SLADE has lation. example, the bill creates national min- been front and center in every debate I also want to associate myself with imum installation standards to make in this Senate. the remarks made by Chairman LEACH sure manufactured homes are not just He has not only been a brilliant legis- and Congressman FRANK in the House manufactured correctly—an area that lator; he has also been a wonderful of Representatives on October 24, 2000 has long been under federal control— friend. I will deeply miss serving with regarding the contracting language in but that they are installed properly him, and I appreciate this opportunity this bill. Their colloquy clarified the and perform as advertised to provide today to pay tribute to a man who has intention of this section. high quality, safe, durable, and afford- not only been an outstanding Senator The legislation includes language able housing for their occupants. but a wonderful friend. taken from S. 2733 designed to increase In addition, the new law establishes a I thank the Chair. I yield the floor, the supply of low-income elderly and dispute resolution process which, for and I suggest the absence of a quorum. disabled housing by expanding avail- the first time, will enable a consumer The PRESIDING OFFICER. The able capital for such projects. We allow determine whether a problem with a clerk will call the roll. service providers in federally assisted manufactured home is due to a manu- The senior assistant bill clerk pro- elderly and disabled facilities to in- facturing or installation defect, and ceeded to call the roll. clude eligible residents in the sur- then get the defect corrected. Ms. COLLINS. Mr. President, I ask rounding neighborhood in their pro- Overall, the manufactured housing unanimous consent that the order for grams, expanding their service to the title of this bill will modernize the reg- the quorum call be rescinded. community as a whole. ulatory structure for the industry in a The PRESIDING OFFICER. Without In addition, there are provisions way that gives consumers a full and objection, it is so ordered. which will allow Rural Housing Service equal voice. Such modernization will f to refinance guaranteed loans, reducing help the industry incorporate new costs for low income rural home- AMERICAN HOMEOWNERSHIP AND technologies more quickly, making owners, and a new program to expand ECONOMIC OPPORTUNITY ACT OF this housing more efficient, more at- housing opportunities to Native Hawai- 2000 tractive, safer, and cheaper. Manufac- ians and Native Americans. Both of tured housing can and should be a big- Ms. COLLINS. Mr. President, I ask these changes will make a big dif- ger part of this nation’s effort to ad- unanimous consent that the Senate ference in the lives of low income fami- dress the rising need for affordable proceed to the consideration of H.R. lies. 5640, which is at the desk. Finally, the legislation reauthorizes housing. This legislation will help The PRESIDING OFFICER. The a number of agency reports under the make this a reality. clerk will report the bill by title. jurisdiction of the Banking Committee I also concur with remarks made in The senior assistant bill clerk read as which would otherwise have expired the House of Representatives by Chair- follows: this year. These reports include the man LEACH and Representatives LA- A bill (H.R. 5640) to expand homeownership Federal Reserve’s Semiannual Report FALCE and FRANK in the House on Oc- in the United States, and for other purposes. on Monetary Policy, the Economic Re- tober 24, 2000, regarding the issue of There being no objection, the Senate port of the President, the annual re- contracting out certain monitoring and proceeded to consider the bill. ports of the federal financial regu- oversight functions required by the leg- Mr. SARBANES. Mr. President. I am latory agencies, and a number of other islation. HUD needs to be able to man- pleased to see that we are passing this significant reports in the area of con- age these contracts in a way that al- bipartisan piece of housing legislation sumer protection. These reports are lows them to get the work done. today. While there are provisions that vital to the exercise of the Banking Finally, I thank Senator SHELBY for were not included in the bill, which I Committee’s oversight function, and I his leadership on this issue. Senator thought were worthy of passage, on the am very pleased that the House and the SHELBY deserves great credit for mak- whole, the ‘‘American Homeownership Senate were able to reach agreement ing this legislation possible. He worked and Economic Opportunity Act of 2000’’ on their reauthorization. through every issue and concern raised is a bill that should become law. I I reiterate my approval for the sub- by the various parties to make this day would like to highlight just a few parts stance of this bill. I am glad to see us possible. I also thank Lendell of this legislation that we worked par- pass these portions of different pieces Porterfield from the staff of Senator ticularly hard on over the last two of legislation this session, though I re- SHELBY. Mr. Porterfield was highly years. gret that a low-income housing produc- professional and extremely knowledge- First is the manufactured housing tion program was not included. able. He provided the leadership at a bill, that has been incorporated into Mr. KERRY. Mr. President, there is staff level that enabled this bill to be- this legislation. This bill establishes a much to applaud in the bill we are tak- come law. In addition, Senator ED- national minimum installation stand- ing up today, H.R. 5640, ‘‘The American WARDS and his staff, Josh Stein, were ard for manufactured homes, ensuring Homeownership and Economic Oppor- instrumental in negotiating the final that the home as installed performs as tunity Act.’’ I note that this legisla- compromise. They ensured that the in- advertised. We have created a dispute tion is identical to legislation I have terests of consumers were balanced resolution program, so that owners, cosponsored, S. 3274. with the needs of industry. Likewise, many of whom are lower-income, are Some of the provisions of H.R. 5640 the leadership of Senator SARBANES not mistreated when they are trying to are contained in bipartisan legislation, and his staff helped ensure that this have a defect in their home corrected. S. 2733, which I have introduced with process would continue to be bipartisan This bill also updates the safety stand- my colleagues Senator SANTORUM, Sen- and productive. Senator BAYH also ard setting process for the manufac- ator SARBANES, and others. These are played an important role. I want to tured housing industry, which will designed to increase the stock of af- make a special note of the work of allow new innovations in technology to fordable housing for elderly and dis- Christen Schaefer of the Banking Com- be incorporated into homes more abled Americans by expanding the pool mittee staff, without whose hard work quickly, making them safer, more effi- of available capital. It will also expand and dedication this legislation could cient, and cheaper for homeowners. the availability of services to help im- not become law.

VerDate 11-MAY-2000 01:39 Dec 08, 2000 Jkt 089060 PO 00000 Frm 00018 Fmt 4624 Sfmt 0634 E:\CR\FM\G07DE6.041 pfrm02 PsN: S07PT1 December 7, 2000 CONGRESSIONAL RECORD — SENATE S11681 There are many other solid achieve- The legislation we are considering partment of Housing and Urban Devel- ments in this legislation that will im- today will improve and modernize a va- opment, Federal Deposit Insurance prove housing opportunities for many riety of federal housing programs. The Corporation, Office of the Comptroller Americans. proposed changes to our nation’s hous- of the Currency, Office of Thrift Super- However, as much as there is to wel- ing laws will increase the efficiencies vision, Federal Housing Finance Board, come in this bill, it is as notable for of subsidized housing programs and and National Credit Union Administra- what is missing. Most importantly, provide that a greater number of truly tion. All of these reports are important this bill does not include any of the nu- needy Americans may be assisted at no in helping Congress conduct its con- merous bipartisan proposals, some of greater cost to the American taxpayer. stitutional oversight responsibilities which passed the House with over- I am particularly pleased that this and ensuring that agencies and depart- whelming majorities, that would pro- legislation includes the Manufactured ments are ultimately accountable to vide for the preservation of existing af- Housing Improvement Act—signifying the American taxpayer. fordable housing that is fast being lost; a cooperative product involving input Mr. President, these are but a few of nor does it include any of the bipar- from industry and other interested par- the highlights of the important provi- tisan proposals to facilitate the con- ties that successfully ends a 10-year sions in H.R. 5640. I am grateful to my struction of new affordable housing. In legislative stalemate. The bill modern- colleagues on both sides of the aisle, particular, I very much regret the ex- izes the requirements of the National both in the Senate and the House, in clusion of the National Affordable Manufactured Housing Construction crafting this compromise legislation. Housing Trust Fund legislation that I and Safety Standards Act of 1974, a 26 In particular, I would like to note the introduced with a number of my col- year-old statute in serious need of revi- extensive cooperation of Senators SAR- leagues from both sides of the aisle. Fi- sion. Manufactured housing reform is BANES and KERRY in working out many nally, it does not include some impor- of great importance to the State of of the provisions of this bill. I urge tant provisions that would encourage Texas, which leads the Nation in the adoption of the bill by the Senate. and support homeownership, such as production and sale of manufactured Ms. COLLINS. Mr. President, I ask low downpayment FHA loans for teach- homes. Across America, manufactured unanimous consent that the bill be ers, police officers, and other munic- homes are a significant source of af- read a third time and passed, the mo- ipal employees. fordable housing—representing 25 per- tion to reconsider be laid upon the Everyone who has looked at the issue cent of all new single-family housing table, and that any statements relating of housing with an open mind, or has starts. I also want to give special to the bill be printed in the RECORD. tried to purchase or rent a home, un- The PRESIDING OFFICER. Without thanks to Senator SHELBY, the original derstands that we face an affordable lead sponsor of the manufactured hous- objection, it is so ordered. housing crisis. A recent study issued by The bill (H.R. 5640) was read the third ing bill, who has worked tirelessly over the National Low Income Housing Coa- time and passed. the years for its passage. Without Sen- lition highlights the fact that there is Ms. COLLINS. Mr. President, I sug- no city, county, or state where a min- ator SHELBY’s dedication and persever- gest the absence of a quorum. imum wage job is adequate to enable a ance, the Manufactured Housing Im- The PRESIDING OFFICER. The working person to afford the typical provement Act title of this bill would clerk will call the roll. rent on 2 bedroom home. In tight mar- not be before the Senate for consider- The senior assistant bill clerk pro- kets such as Boston, New York, Den- ation today. ceeded to call the roll. The American Homeownership and ver, Minneapolis-St. Paul, Austin, San Mr. TORRICELLI. Mr. President, I Economic Opportunity Act contains Francisco, and many others around the ask unanimous consent that the order many other significant housing provi- country, affordable housing is out of for the quorum call be rescinded. reach to average working families. sions, including modernization of the The PRESIDING OFFICER. Without The Federal Government has an im- Department of Housing and Urban De- objection, it is so ordered. portant role to play here, and I will be velopment’s, HUD, Section 202 elderly f working very hard in the upcoming housing and Section 811 disabled hous- ing programs; the Department of Agri- TRIBUTE TO DEPARTING Congress to make sure that we pass SENATORS AND NEW SENATORS new legislation, such as my trust fund culture’s rural housing programs; HUD legislation, that will get the Govern- Native American housing programs; Mr. TORRICELLI. Mr. President, in ment back in the business of encour- and the HUD home equity conversion the days and hours that remain in this aging the production of new affordable mortgage program, which allows our session, many of us on each side of our housing. cash-poor but house-rich senior citi- respective aisles will say a great deal I support the legislation before us, zens the opportunity to utilize their about the colleagues we have worked and I hope that my colleagues will join home equity for needed expenses. with and admire from our own political me in the coming Congress to complete This legislation also renews some 45 parties. Indeed, I am no exception. For the effort we have begun here today. reporting requirements of Executive years, the contributions of the MOY- Mr. GRAMM. Mr. President, today Branch and regulatory agencies, in- NIHANs, or the BOB KERREYs, or the the Senate is taking up H.R. 5640, the cluding the report of the Federal Re- DICK BRYANs, or the FRANK LAUTEN- American Homeownership and Eco- serve Board on the conduct of mone- BERGs have been extraordinary in the nomic Opportunity Act, which was tary policy. life of our country and in the workings passed by the House of Representatives H.R. 5640 directs that the Chairman of this Senate. I will join those voices on December 5, 2000. Companion legis- of the Federal Reserve appear before in praising each of them. But at this lation, sponsored by Senator ALLARD the Congress twice annually, once in moment I wish to say a word as well and myself, together with Senators February and again in July, to report about our colleagues from the Repub- SARBANES, SANTORUM, GRAMS, SHELBY, on the Federal Reserve’s activities lican Party who are leaving this insti- CAMPBELL, and KERRY, was introduced with respect to the conduct of mone- tution. on December 5. This legislation is the tary policy and its outlook regarding Having chaired the Democratic Sen- product of bipartisan work and nego- economic developments and prospects atorial Campaign Committee for these tiations in both bodies, and I urge the in the future. This legislation elimi- years, I have known some of these Sen- Senate to pass this bill today. nates the requirement of the Federal ators as friends and colleagues but also As Chairman of the Committee on Reserve to report on many of the out- as adversaries. It is a peculiar and even Banking, Housing and Urban Affairs, I dated economic indicators required in awkward thing in the American polit- have had the privilege of working the past, such as measures of money ical process that with people you like closely with Housing and Transpor- supply that are no longer useful. and admire, you can nevertheless have tation Subcommittee Chairman AL- Among other reports reinstated in philosophical differences; you can have LARD and want to express my apprecia- this legislation are the Annual Eco- a political contest but nevertheless tion for his strong leadership and com- nomic Report of the President and an- deal with them civilly. mend him for the successful steward- nual reports from numerous banking I admire many of these men and rise ship of this legislation. and housing agencies, including the De- today to praise their contributions to

VerDate 11-MAY-2000 01:39 Dec 08, 2000 Jkt 089060 PO 00000 Frm 00019 Fmt 4624 Sfmt 0634 E:\CR\FM\G07DE6.043 pfrm02 PsN: S07PT1 S11682 CONGRESSIONAL RECORD — SENATE December 7, 2000 the Senate and the country; and, as try, to have the Senate act with dis- paying tribute to colleagues on both many other Americans, to thank them tinction, and ultimately—simply the sides of the aisle who for a variety of for their service even though it was my most obvious goal of all—to help ordi- reasons are leaving this institution. responsibility to help wage campaigns nary people in our country who live I think it goes without saying that against them. That is our system. It is sometimes quiet lives, usually content those of us who have been involved in not personal. It is borne only in the to have the Government not be a part putting ourselves in battles for elec- struggle of ideas, the competition of of all that they do but every so often tions understand that it takes some proposals, and the free market of look for help, guidance, or certainly courage and maybe some foolhardiness American politics that have served our the simple need to be able to look upon to put your name on a ballot and sub- country so well. their Government with pride. mit your fate to the neighbors and I would like to say a word about sev- I welcome these individuals to the friends with whom you live. Those eral Members of the Senate who are Senate, and I say farewell for the mo- leaving this institution have done that not of the Democratic Party. ment to those who are leaving. I con- time and again. I respect them. Al- Senator ABRAHAM of Michigan, with gratulate those who won and those who though we disagree on issues and on whom I worked on the Judiciary Com- lost on having done what our Nation is philosophy, we respect them so much mittee, is a respected Member of the dependent upon; that is, people of good for the courage they have shown and institution, a very fine Senator who meaning and integrity going out every for their dedication to public service. has left his mark on the great issues of day saying the things they believe in, One of the most important lessons I law enforcement, who I have come to fighting for the causes they hold dear, ever learned in politics was my first know and admire. and asking the public to render judg- one. I was a college intern on Capitol Senator ROTH of Delaware, who I did ment. Hill working in the office of the U.S. not know well personally but who clev- Senators ABRAHAM, ROTH, ASHCROFT, Senator, Paul Douglas. I had no sooner erly served this institution with dis- GRAMS, and GORTON did just that. Sen- met the man in February than I fell in tinction for a long time, changed many ator MACK did for a long time. Now love with this life and decided to work of our laws and much for the better. Senators ENSIGN and ALLEN have in Government. A few short months Senator ASHCROFT, who as well joined them. later, he lost his election in an effort served with me on the Judiciary Com- We will have a chance in the coming to be reelected to the State of Illinois. mittee, is a gentleman, is a fierce advo- days to welcome each of our Demo- It really came crashing down on me— cate for his point of view, and is a cratic colleagues, as well as thank that a man who served for 18 years, be- skilled man who dealt in a campaign in those who are leaving. cause of the decision of the electorate, extraordinary circumstances, I believe There are few who are finer or served could see his political career come to with considerable distinction. with more distinction than Senator an end that bluntly. Senator GRAMS of Minnesota, I be- . Indeed, in so many ave- A constant reminder in my public life lieve, too, worked hard gaining the re- nues of American life, he has served is the fact that this is a fickle business, spect of his colleagues. our country with distinction. There are and no one can ever take for granted Senator GORTON of Washington probably few who have served here for the next election. But I believe that State, who served his State for so very which it can genuinely be said this is a the men and women who have served long and so ably, I believe, was a tre- better Senate. We are all the better have done so honorably, and I salute mendous Member of this institution. having been in the Senate in his pres- those on both sides who will not be Although he did lose an election and is ence. That is certainly true with Sen- with us in the next Congress. also leaving this institution, he is one ator KERREY. I say on a positive note that we had of my favorite members of the other Senator MOYNIHAN as well contrib- our organizational caucus of the Demo- party. uted to our country in so many dif- cratic Senators a few days ago in the CONNIE MACK, who I served with in ferent endeavors—a giant of the insti- Old Senate Chamber. We had a chance the House of Representatives, is an ex- tution, who in his wake clearly made it for each of the 10 new Democratic Sen- traordinary Senator and a great gen- a better place. There is not a finer or ators to stand and speak for a moment tleman who has made enormous con- more revered Senator. about their feelings concerning their tributions to the Congress and to the But equal in their contributions in elections and service in the Senate. United States. their own way are Senator BRYAN, Sen- One word that was used most fre- People who I have also come to meet ator LAUTENBERG, and Senator ROBB— quently by these new Senators was as adversaries through the electorate all of whom tirelessly worked for our ‘‘humility’’—how humbled they were to process I want to join in welcoming to country and devoted themselves to the be part of this institution. the Senate. They are both fierce advo- Senate. We can all feel the better be- I have always felt that. I think it is cates and great campaigners, who de- cause they were here. such an exceptional responsibility but feated my party in the fields of polit- Thank you for allowing me to share also an exceptional privilege to serve ical contest. these words. I hope when the years pass in this great body. I have believed that Former Congressman ENSIGN, who we can all remember the distinction representing a State as diverse and in- joins us as a Senator from Nevada, will with which they served, but also the teresting as Illinois gives a special be a fine Senator. He is a great advo- grace with which some of our col- meaning. cate for his State, and is an impressive leagues accepted the voters’ judgment The new Senators coming on both individual who I believe will serve with and their defeat. They did so humbly, sides of the aisle will add something to distinction in the Senate. and they did so civilly; and, how some this Chamber, as each new class of Sen- Governor ALLEN, who was engaged in of the victors have also come here ators does. I hope before we begin an- one of the most competitive Senate humbly as well understanding they ticipating the next Congress and what contests in the country, has served have a lot to contribute and a great it might mean, we take care of the with distinction as a Governor, and I deal to learn with the grace of the pub- business of this Congress. believe he will be an extraordinary lic having given them the opportunity. PASSING APPROPRIATIONS BILLS Senator. I yield the floor. Mr. President, we are required by I welcome them to the institution. The PRESIDING OFFICER. The Sen- law, as of each October 1st, to pass Despite an evenly divided Senate, there ator from Illinois. spending bills, appropriations bills for are real differences on fundamental Mr. DURBIN. Mr. President, I ask the function of government. Most Con- issues as to how the Nation should ap- unanimous consent to be recognized in gresses fail to meet the deadline of Oc- proach education and health care, gun morning business. tober 1st. Some miss it by a few days, safety, and the use of the budget sur- The PRESIDING OFFICER. The Sen- some by a few weeks. Sadly, this Con- plus. These issues are real. Our dif- ator is recognized. gress will miss it by a few months. ferences have meaning. Sometimes dif- Mr. DURBIN. Mr. President, I would We still have major spending bills ferences are deep. But our objectives like to associate myself with the re- which have not been passed by this are common; that is, to serve the coun- marks of the Senator from New Jersey, Congress. Frankly, we have run out of

VerDate 11-MAY-2000 01:39 Dec 08, 2000 Jkt 089060 PO 00000 Frm 00020 Fmt 4624 Sfmt 0634 E:\CR\FM\G07DE6.049 pfrm02 PsN: S07PT1 December 7, 2000 CONGRESSIONAL RECORD — SENATE S11683 excuses. It is time to pass those bills In my conversations with hospital CONCLUSION OF MORNING which will continue the functions of administrators and doctors, those who BUSINESS government. The Labor-HHS bill is one are managing nursing homes, those The PRESIDING OFFICER. Morning that deals with education and health who are providing valuable health care business is closed. and labor standards in America. Is services, there is nothing more impor- f there any greater responsibility? How tant to them than getting this done be- can we explain the fact that we still fore we leave. No excuse will do. It was BANKRUPTCY REFORM ACT OF haven’t done it? There is no excuse part of the general tax relief bill that 2000—CONFERENCE REPORT left. We need to pass that legislation was pending before Congress, a con- The PRESIDING OFFICER. Under and do it quickly. troversial bill that involved over $250 the previous order, the Senate will now Secondly, the bill related to the billion in tax relief over the next 10 resume consideration of the conference Commerce, Justice, and State Depart- years. That bill is caught up in con- report to accompany H.R. 2415, which ments not only deals with the adminis- troversy and is going nowhere. The the clerk will report. tration of justice and law enforcement President has said he would have to The legislative clerk read as follows: but the representation of the American veto it. The provision in there relative Conference report to accompany the bill Government overseas, the representa- to Medicare and Medicaid would be lost (H.R. 2415) to enhance security of United tion of American business in an effort in that process. States missions and personnel overseas, to to create new jobs in this country. Yet authorize appropriations for the Department It has been reported in the news- of State for fiscal year 2000, and for other we haven’t passed that legislation. papers, and I think it is probably accu- purposes. I hope we won’t fall on the easy solu- rate, that the leadership has pulled Mr. WELLSTONE. Mr. President, it tion suggested by some that we some- away from that tax bill now and be- how postpone this for months or an- is my understanding that we are now in lieves it cannot pass. But we would debate on the bankruptcy bill; is that other year. That would truly be make a serious mistake if we backed humiliating to this Congress, if it correct? off from our commitment to deal with The PRESIDING OFFICER. That is should fall into that trap. It is better Medicare and Medicaid before we ad- correct. to face four square our responsibility. I journ this Congress. I think there is a Mr. WELLSTONE. I thank the Chair. hope leaders on both sides of the aisle will and there is a way. Mr. President, I yield myself, from and the can come to an I have spoken with the representa- Senator LEAHY’s time, 30 minutes. agreement as quickly as possible. The PRESIDING OFFICER. Without There is one special issue, though, tive from the White House, Mr. Lew, who heads up the Office of Management objection, it is so ordered. that I hope we can address before we Mr. WELLSTONE. I am sorry, I have and Budget, and my colleague and leave. It affects my State and the State my own time. friend, the Speaker of the House DEN- of the Presiding Officer, the State of Il- Mr. President, The proponents of this NIS HASTERT, who understands the im- linois, the question of hospital care and bill argue that people file because they portance of this issue to the State of Il- reimbursement from the Federal Gov- want to get out of their obligations, be- linois. I have talked to my colleagues ernment. More and more, our hospitals cause they’re untrustworthy, because on this floor. We clearly can achieve across Illinois and around the Nation they’re dishonest, because there is no this. In achieving it, we can send back depend on the Medicare and Medicaid stigma in filing for bankruptcy. programs to adequately reimburse a message not only to rural hospitals, But any look at the data tells you them for quality health care which which frankly are facing the ruin of de- otherwise. We know that in the vast American families expect. In an effort clining revenues at a time when they majority of cases it is a drastic step to balance the budget, we made cuts in are trying to keep their doors open, but taken by families in desperate finan- reimbursement under the Medicare also hospitals in the inner cities and cial circumstances and overburdened program. We had hoped to save a little hospitals across America, teaching hos- by debt. The main income earner may over $100 billion over some years. We pitals, and others that rely on these re- have lost his or her job. There may be cut too deeply, and now we know un- imbursements. sudden illness or a terrible accident re- less we reverse that policy, the actual I urge my colleagues, as we consider quiring medical care. savings or cost cutting will be well the next Congress, let’s not forget the Specifically we know that nearly half over $200 billion. remaining agenda of this Congress. It of all debtors report that high medical On its face, it may sound like a good is not enough to pack our bags, wish costs forced them into bankruptcy— reason, that we are reducing the deficit everyone a happy holiday, and head this is an especially serious problem even more, and that is a very valuable home. There are important items still for the elderly. But when you think thing. But the price we are paying is to be resolved. We were elected and about it, a medical crisis can be a dou- too high because in hospital after hos- took an oath of office to resolve this. ble financial whammy for any family. pital, in nursing homes and those agen- No excuse will do at this point. Let us First there are the high costs associ- cies providing home health care serv- pass those pending appropriations bills, ated with treatment of serious health ices, they are inadequately reimbursed make the compromises necessary to do problem. Costs that may not be fully by the Federal Government and they so, and not forget our responsibility covered by insurance, and certainly the are forced to cut back time and again under Medicare and Medicaid across over 30 million Americans without on the services the people have come to the United States to seniors, the dis- health insurance are especially vulner- expect. abled, and the disadvantaged, who rely able. But a serious accident or illness Yesterday we had an interesting in- on those programs for quality health may disable—at least for a time—the formal hearing on the Senate side. I care. primary wage earner in the household. hope it is a portent of good things to I think it can be done. I hope my col- Even if it isn’t the person who draws come. A bipartisan hearing with Sen- leagues join me in making certain we the income, a parent may have to take ator SPECTER, Senator HUTCHISON, as make that effort as we close this ses- significant time to care for a sick or well as Senator COLLINS on the Repub- sion of the Congress. disabled child. Or a son or daughter lican side, joined with Senators KEN- I suggest the absence of a quorum. may need to care for an elderly parent. NEDY, ROCKEFELLER, WELLSTONE, and The PRESIDING OFFICER. The This means a loss in income. It means myself to talk about this issue and to clerk will call the roll. more debt and the inability to pay that say that before Congress adjourns, we debt. need to address what is known as the The legislative clerk proceeded to Are people overwhelmed with med- Balanced Budget Act reform as it re- call the roll. ical debt or sidelined by illness dead- lates to Medicare and Medicaid. I be- Mr. WELLSTONE. Mr. President, I beats? This bill assumes they are. For lieve there is a genuine sentiment on ask unanimous consent that the order example, it would force them into cred- the floor of the Senate, a strong bipar- for the quorum call be rescinded. it counseling before they could file—as tisan Senate, that we do this before we The PRESIDING OFFICER. Without if a serious illness or disability is go home. objection, it is so ordered. something that can be counseled away.

VerDate 11-MAY-2000 01:39 Dec 08, 2000 Jkt 089060 PO 00000 Frm 00021 Fmt 4624 Sfmt 0634 E:\CR\FM\G07DE6.053 pfrm02 PsN: S07PT1 S11684 CONGRESSIONAL RECORD — SENATE December 7, 2000 Women single filers are now the larg- is a difficult demoralizing process, but stand with working families, with sen- est group in bankruptcy, and are one for nearly all who decide to file, it iors, with single women with children, third of all filers. They are also the means the difference between a finan- with African Americans and hispanics. fastest growing. Since 1981, the number cial disaster being temporary or per- But I would say to my colleagues on of women filing alone increased by manent. The repercussions of tearing the floor of the United States Senate more than 700 percent. A woman single that safety net asunder will be tremen- today that this is not a debate about parent has a 500 percent greater likeli- dous, but the authors of the bill remain winners and losers. Because we all lose hood of filing for bankruptcy than the deaf to the chorus of protest and indig- if we erode the middle class in this population generally. Single women nation that is beginning to swell as or- country. We all lose if we take away with children often earn far less than dinary Americans and members of Con- some of the critical underpinnings that single men aside for the difficulties and gress begin to understand that bank- shore up our working families. Sure, in costs of raising children alone. Divorce rupt Americans are much like them- the short run big banks and credit card is also a major factor in bankruptcy. selves—are exactly like themselves— companies may pad their profits, but in Income drops, women, again, are espe- and that they are only one layoff, one the long run our families will be less cially hard hit. They may not have medical bill, one predatory loan away secure, our entrepreneurs will become worked prior to the divorce, and now from joining the ranks. more risk adverse and less entrepre- have custody of the children. For the debtor and his family the neurial. Are single women with children dead- benefit of bankruptcy—despite the em- How so? Well this how a Georgia Con- beats? This bill assumes they are. The barrassment, despite the humiliation gressman described the issue in 1841: new nondischargeability of credit card of acknowledging financial failure—is Many of those who become a victim to the debt will hit hard those women who use obvious, to get out from crushing debt, reverses are among the most high-spirited the cards to tide them over after a di- to be able to once again attempt to live and liberal-minded men of the country—men vorce until their income stabilizes. And within one’s means, to concentrate who build up your cities, sustain your benev- the ‘‘safe harbor’’ in the conference re- one’s income on clear priorities such as olent institutions, open up new avenues to port which proponents argue will shield food, housing and transportation. But trade, and pour into channels before unfilled the tide of capital. low and moderate income debtors from it is also the fundamental principles of the means test will not benefit many a just society to ensure that financial This is still true today. single mothers who need help the most mistakes or unexpected circumstances This isn’t a debate about reducing because it is based on the combined in- do not mean banishment forever from the high number of bankruptcies. No come of the debtor and the debtor’s productive society. way will this legislation do that. In- spouse, even if they are separated, the The ‘‘fresh start’’ that is under at- deed, by rewarding the reckless lending spouse is not filing for bankruptcy, and tack here in the Senate today is noth- that got us here in the first place we the spouse is providing no support for ing less than a critical safety net that will see more consumers overburdened the debtor and her children. In other protects America’s working families. with debt. words, a single mother who is being de- As Sullivan Warren and Westbrook put No, this is a debate about punishing prived of needed support from a well- it in ‘‘The Fragile Middle Class’’: failure. Whether self inflicted or un- controlled and unexpected. This is a de- off spouse is further harmed by this Bankruptcy is a handhold for middle class bill, which will deem the full income of debtors on the way down. These families bate about punishing failure. And if that spouse available to pay debts for have suffered economic dislocation, but the there is one that this country has determination of whether the safe har- ones that file for bankruptcy have not given learned, punishing failure doesn’t bor and means test applies. up. They have not uprooted their families work. You need to correct mistakes, Mr. President, you will hear my col- and drifted from town to town in search of prevent abuse. But you also need to lift leagues talk about high economic work. They have not gone to the under- people up when they’ve stumbled, not growth and low unemployment and ground economy, working for cash and say- beat them down. ing off the books. Instead, these are middle Of course, what the Congress is wonder how so many people could be in class people fighting to stay where they are, circumstances that would require them trying to find a way to cope with their de- poised to do here with this bill is even to file for bankruptcy. Well, the rosy clining economic fortunes. Most have come worse within the context of this Con- statistics mask what has been modest to realize that their incomes will never be gress. This is a Congress that has failed real wage growth at the same time the the same as they once were. As their com- to address skyrocketing drug costs for debt burden on many families has sky- ments show, they realize they can live on seniors, this is a Congress that has rocketed. And it also masks what has $30,000 or $20,000 or even $10,000. But they failed to enact a Patients’ Bill of been real pain in certain industries and cannot do that and meet the obligations that Rights much less give all Americans they ran up while they were making much access to affordable health care. This is certain communities as the economies more. When put to a choice between paying restructure. Even temporary job loss credit card debt and mortgage debt, between a Congress that does not invest in edu- may be enough to overwhelm a family dealing with a dunning notice from Sears cation, that does not invest in afford- that carries significant loans and often and putting groceries on the table, they will able child care. This a Congress that the reality is that a new job may be at go to the bankruptcy courts, declare them- has yet to raise the minimum wage. a lower wage level—making a pre- selves failures, and save their future income But instead, we declare war on Amer- viously manageable debt burden un- for their mortgage and their groceries. ica’s working families with this bill. workable. I say to my colleagues, there may be What is clear is that this bill will be So what does this bill do to keep peo- many different standards that different a death of a thousand cuts for all debt- ple who undergo these wrenching expe- members have for bringing legislation ors regardless of whether the means riences out of bankruptcy? Nothing. to the floor of the United States Sen- test applies. There are numerous provi- Zero. Tough luck. Instead, this con- ate. We come from different back- sions in the bankruptcy reform bill de- ference report just makes the fresh grounds, we come from different states, signed to raise the cost of bankruptcy, start of bankruptcy harder to achieve. we have different philosophies about to delay its protection, to reduce the But this doesn’t change anyone’s cir- the role of government in society. We opportunity for a fresh start. But rath- cumstances, this doesn’t change the have differing priorities. But for God’s er than falling the heaviest on the sup- fact that these folks no longer earn sake, there should be one principle that posed rash of wealthy abusers of the enough to sustain their debt. Mr. Presi- all of us can get behind and that is that code, they will fall hardest on low and dent, there is not one thing in this so we should do no harm here in our work middle income families who des- called bankruptcy reform bill that in America’s working families. perately need the safety net of bank- would promote economic security in That’s what is at stake here. This is ruptcy. working families. a debate about priorities. This is a de- I want to take some time to talk When you push the rhetoric aside, bate about what side you’re on. This is about the effect this bill will have on one thing becomes clear: The bank- a debate about who you stand with. low and middle class debtors. Remem- ruptcy system is a critical safety net Will you stand with the big banks and ber, nearly all debtors who file for for working families in this country. It the credit card companies or will you bankruptcy are not wealthy scofflaws,

VerDate 11-MAY-2000 01:39 Dec 08, 2000 Jkt 089060 PO 00000 Frm 00022 Fmt 4624 Sfmt 0634 E:\CR\FM\A07DE6.010 pfrm02 PsN: S07PT1 December 7, 2000 CONGRESSIONAL RECORD — SENATE S11685 but rather people in desperate eco- bill will be on real life debtors—the making a good faith attempt to apply nomic circumstances who file as a last folks profiled in the Time article. I the means test, which after all created resort to try and rebuild their finances, hope the authors of the bill will come a presumption of abuse. and, in many cases, end harassment by to the floor to debate on these points. Of course, young Annelise Trapp’s their creditors. And in particular I There could be the opportunity for medical problems continue and are want to remind my colleagues of the some real progress on an issue that has only getting worse. Under current law, May 15, 2000 issue of Time magazine yet to be addressed by the bill’s sup- if the Trapps again amass medical and whose cover story on this so-called porters. Specifically, I challenge them other debts they can’t pay, they could bankruptcy reform legislation was en- to come to the floor and explain to seek refuge in chapter 13 where they titled ‘‘Soaked by Congress.’’ their colleagues how making bank- would be required to pay all that they The article, written by reporters Don ruptcy relief harder and much more could afford. Under the new bill, the Bartlett and Jim Steele, is a detailed costly to achieve will benefit working Trapps could not file a chapter 13 case look at the true picture of who files for families. for five years. Even then, their pay- bankruptcy in America. You will find Charles and Lisa Trapp were forced ments would be determined by the IRS it far different from the skewed version into bankruptcy by medical problems. expense standards and they would have being used to justify this legislation. Their daughter’s medical treatment to stay in their plan for 5 years, rather The article carefully documents how left them with medical debts well over than the 3 years required by current low and middle income families—in- $100,000, as well as a number of credit law. The time for filing a new chapter creasingly households headed by single card debts. Because of her daughter’s 7 would also be increased by the bill, women—will be denied the opportunity degenerative condition, Ms. Trapp had from 6 years to 8 years. of a ‘‘fresh start’’ if this punitive legis- to leave her job as a letter carrier Not only does the majority leader lation is enacted. As Brady Williamson, about two months before the bank- want to ram through bankruptcy legis- the Chairman of the National Bank- ruptcy case was filed to manage her lation on the State Department au- ruptcy Review Commission, notes in daughter’s care. Before she left her job, thorization conference report, which he the article, the bankruptcy bill would the family’s annual income was about has literally hijacked for that purpose, condemn many working families to $83,000, or about $6900 per month, so there is no question that this is a sig- ‘‘what essentially is a life term in debt- under the bill, close to that amount, nificantly worse legislation than what or’s prison.’’ about $6200, the average monthly in- passed the Senate. In fact, there is no Now proponents of this legislation come for the previous six months, pretending that this is a bill designed have tried to refute the Time magazine would be deemed to be their current to curb real abuse of the bankruptcy article. Indeed during these final days monthly income, even though their code. of debate you will hear the bill’s sup- gross monthly income at the time of Does this bill take on wealthy debt- porters claim that low and moderate filing was only $4800. Based on this fic- ors who file frivolous claims and shield income debtors will be unaffected by titious deemed income, the Trapps their assets in multi million dollar this legislation. But colleagues, if you would have been presumed to be abus- mansions? No, it guts the cap on the listen carefully to their statements ing the Bankruptcy Code, since their homestead exemption adopted by the you will hear that they only claim that allowed expenses under the IRS guide- Senate. I ask my colleagues who sup- such debtors will not be affected by the lines and secured debt payments port this bill: how can you claim that bill’s means tests. Not only is that amounted to $5339. The difference of this bill is designed to crack down on claim demonstrably false—the means about $850 per month would have been wealthy scoff laws without closing the test and the safe harbor have been deemed available to pay unsecured massive homestead loophole that exists written in a way that will capture debts and was over the $167 per month in five states, and in a bill that falls so many working families who are filing triggering a presumption of abuse. The harshly on the backs of low and mod- for Chapter 7 relief in good faith—but Trapps would have had to submit de- erate income individuals? it ignores the vast majority of this leg- tailed documentation to rebut this pre- I wonder how my colleagues who vote islation which will impose needless sumption, trying to show that their in- for this conference report will explain hurdles and punitive costs on all fami- come should be adjusted downward be- this back home. How will they explain lies who file for bankruptcy regardless cause of special circumstances and that that they supported letting wealthy of their income. Nor does the safe har- there was no reasonable alternative to debtors shield their assets from credi- bor apply to any of these provisions! Ms. Trapp leaving her job. tors at the same time that voted to end You might ask why the Congress has Because their ‘‘current monthly in- the practice under current law of stop- chosen to come down so hard on ordi- come,’’ although fictitious, was over ping eviction proceedings against ten- nary working folk down on their luck. the median income, the family would ants who are behind on rent who file How is it that this bill is so skewed have been subject to motions for for bankruptcy. With one hand we gut against their interests and in favor of ‘‘abuse’’ filed by creditors, who might tenants rights, with the other we shield big banks and credit card companies? argue that Ms. Trapp should not have wealthy homeowners. Maybe that’s because these families left her job, and that the Trapps should Nor does this bill contain another don’t have million-dollar lobbyists rep- have tried to pay their debts in chapter amendment offered by Senator SCHU- resenting them before Congress. They 13. They also would not have been pro- MER and adopted by the Senate that don’t give hundreds of thousands of tected by the safe harbor. The Trapps would prevent violators of the Fair Ac- dollars in soft money to the Demo- would have had to pay their attorney cess to Clinic entrances Act—which cratic and Republican parties. They to defend such motions and if they protects women’s health clinics—from don’t spend their days hanging outside could not have afforded the thousand using the bankruptcy system to walk the Senate chamber waiting to bend a dollars or more that this would have away from their punishment. Again, I Member’s ear. Unfortunately it looks cost, their case would have been dis- thought the sponsors of the measure like the industry got to us first. missed and they would have received wanted to crack down on people who They may have lost a job, they may no bankruptcy relief. If they prevailed game the system. What could be a big- be struggling with a divorce, maybe on the motion, it is very unlikely they ger misuse of the system then to use there are unexpected medical bills. But could recover attorney’s fees from a the bankruptcy code to get out of dam- you know what? They are busy trying creditor who brought the motion, since ages imposed because you committed to turn their lives around. And I think recovery of fees is permitted only if the an act of violence against a women’s it is shameful that at the same time creditor’s motion was frivolous and health clinic? this story is unfolding for a million could not arguably be supported by any And yet the secret conferees on his families across America, Congress is reasonable interpretation of the law (a bill simply walked away. They walked poised to make it harder for them to much weaker standard than the origi- away from the real opportunity to pro- turn it around. Who do we represent? nal Senate bill.) Because the means hibit an abuse that all sides recognize I want to take a few minutes to ex- test is so vague and ambiguous, and exist, but they also walked away from plain exactly what the effects of this creditor could argue that it was simply an opportunity to protect women from

VerDate 06-DEC-2000 02:11 Dec 08, 2000 Jkt 089060 PO 00000 Frm 00023 Fmt 4624 Sfmt 0634 E:\CR\FM\A07DE6.012 pfrm02 PsN: S07PT1 S11686 CONGRESSIONAL RECORD — SENATE December 7, 2000 harassment. They walked away from credit industry has begun to aggres- passes, it’s working families who get the opportunity to protect women from sively court the poor and the vulner- burned. violence. able, bankruptcies have risen. Credit But guess what? It gets even worse, So why shouldn’t people be cynical card companies brazenly dangle lit- because the consumer finance industry about this process? Ever since bank- erally billions of card offers to high isn’t just reckless in its lending habits, ruptcy reform was passed by the Sen- debt families every year. They encour- big name lenders all too often break or ate this bill has gotten less balanced, age card holders to make low payments skirt the law in both marketing and less fair, and more punitive—but only toward their card balances, guaran- collection. for low and moderate income debtors. teeing that a few hundred dollars in For example: So again, I would say to my colleagues, clothing or food will take years to pay In June of this year the Office of the this bill is a question of our priorities. off. The lengths that companies go to Comptroller of the Currency reached a Will we stand with wealthy dead beats keep their customers in debt is ridicu- settlement with Providian Financial or will we take a stand to protect lous. Corporation in which Providian agreed women seeking reproductive health In the interest of full disclosure— to pay at least $300 million to its cus- services from harassment? something that the industry itself isn’t tomers to compensate them for using But unfortunately, these were not very good at—I would like my col- deceptive marketing tactics. Among the only areas where the shadow con- leagues to be aware of what the con- these were baiting customers with ‘‘no ferees beat a retreat from balance and sumer credit industry is practicing annual fees’’ but then charging an an- fairness. even as it preaches the sermon of re- nual fee unless the customer accepted You know, a lot of folks must be sponsible borrowing. After all, debt in- the $156 credit protection program watching the progress of this bank- volves a borrower and a lender; poor (coverage which was itself deceptively ruptcy bill over the course of this year choices or irresponsible behavior by ei- marketed). The company also mis- with awe and envy. Can my colleagues ther party can make the transaction go represented the savings their cus- name one other bill that the leadership sour. tomers would get from transferring ac- has worked so hard and with such de- So how responsible has the industry count balances from another card. termination to move by any and all been? I suppose that it depends on how In 1999, Sears, Roebuck & Co. paid means necessary? Certainly not an in- you look at it. On the one hand, con- $498 million in settlement damages and crease in the minimum wage. Certainly sumer lending is terrifically profitable, $60 million in fines for illegally coerc- not a meaningful prescription drug with high cost credit card lending the ing reaffirmations—agreements with benefit for seniors, certainly not the most profitable of all (except perhaps borrowers to repay debt—from its card- reauthorization of the Elementary and for even higher costs credit like payday holders. But apparently this is just the Secondary Education Act. On many loans). So I guess by the standard of re- cost of doing business: Bankruptcy issues, on most issues, this has been a sponsibility to the bottom line they judges in California, , and New do nothing Congress. But on so-called have done a good job. York have claimed that Sears is still bankruptcy reform, the Senate and On the other hand, if you define re- up to its old strong arm tactics, but is House leadership can’t seem to do sponsibility as promoting fiscal health now using legal loopholes to avoid dis- enough! among families, educating on judicious closure. Now colleagues, Sears is a One can only wonder what we could use of credit, ensuring that borrowers creditor in one third of all personal have accomplished for working fami- do not go beyond their means, then it bankruptcies. And by the way, this leg- lies if the leadership had the same de- is hard to imagine how the financial islation contains provisions that would termination on other issues. Unfortu- services industry could be bigger dead- have protected Sears from paying back nately those other issues did have the beats. any monies that customers were financial services industry behind it. According the Office of the Comp- tricked into paying under these plans. And you have to give them credit—no troller of Currency, the amount of re- This July, North American Capital pun intended—over the past couple of volving credit outstanding—i.e. the Corp., a subsidiary of GE, agreed to pay years they have played the Congress amount of open ended credit (like cred- a $250,000 fine to settle charges brought like a violin. And what do you know, it cards) being extended—increased by the Federal Trade Commission that here we are trying to ram through this seven times during 1980 and 1995. And the company had violated the Fair bankruptcy bill in the 11th hour as the between 1993 and 1997, during the sharp- Debt Collection Practices Act by lying 106th Congress draws to a close. est increases in the bankruptcy filings, to and harassing customers during col- In reading the consumer credit indus- the amount of credit card debt doubled. lections. try’s propaganda one would think the Doesn’t sound like lenders were too In October 1998, the Department of story of bankruptcy in America is one concerned about the high number of Justice brought an antitrust suit of large numbers of irresponsible, high bankruptcies—at least it didn’t stop against VISA and Mastercard, the two income borrowers and their conniving them from pushing high cost credit largest credit card associations, charg- attorney using the law to take advan- like candy. ing them with illegal collusion that re- tage of naive and overly trusting lend- Indeed, what do credit card compa- duced competition and made credit ers. nies do in response to ‘‘danger signals’’ cards more expensive for borrowers. As it turns out, that picture of debt- from a customer that they may be in These are just a few examples, I ors is almost completely inaccurate. over their head. According to ‘‘The could go on and on. At a minimum, The number of bankruptcies has fallen Fragile Middle Class’’ an in depth these illegal and unscrupulous prac- steadily over the past months, charge study of who files for bankruptcy and tices rob honest creditors who play by offs (defaults on credit cards) are down why, the company’s reaction isn’t what the rules of repayment. And the cost to and delinquencies have fallen to the you would think. debtors and other creditors alike are lowest levels since 1995, and now all In other words, those folks who may tremendous. sides agree that nearly all debtors re- have come into your office this year or But other practices are not illegal, sort to bankruptcy not to game the last year talking about how they need- merely unsavory. system but rather as a desperate meas- ed protection from customers who Let me repeat myself in case my col- ure of economic survival. walked away from debts, who thought leagues somehow missed the blatant It also turns out that the innocence Congress should mandate credit coun- hypocrisy of what’s going on here: The of lenders in the admittedly still high seling—to promote responsible money big banks and credit card companies numbers of bankruptcies has also management—as a requirement for are pushing to rig the system so that been—to be charitable—overstated. seeking bankruptcy protection, who ar- you cannot file for bankruptcy unless As high cost debt, credit cards, retail gued that reform of the bankruptcy you perform credit counseling at the charge cards, and financing plans for code is needed because of decline in the same time that they are jeopardizing consumer goods have skyrocketed in stigma of bankruptcy have been pour- the health the credit counseling indus- recent years, so have the number of ing gasoline on the flames the whole try and making it significantly more bankruptcy filings. As the consumer time. Of course, in the end, if this bill costly for debtors.

VerDate 11-MAY-2000 01:39 Dec 08, 2000 Jkt 089060 PO 00000 Frm 00024 Fmt 4624 Sfmt 0634 E:\CR\FM\A07DE6.013 pfrm02 PsN: S07PT1 December 7, 2000 CONGRESSIONAL RECORD — SENATE S11687 That is pretty brazen, but as my col- terrible. The House and Senate Repub- work is likely to become law. Conference re- leagues will hear over and over in this licans have taken a secretly negotiated ports are privileged. Motions to proceed to debate, this isn’t just an industry that bankruptcy bill and stuffed it into the them cannot be debated, and such reports wants to have it both ways, it wants to State Department authorization bill in cannot be amended. So conference commit- have it several different ways. tees are already very powerful. But if con- which not one provision of the original ference committees are permitted to add Of course, these are mild abuses com- bill remains. Of course, State Depart- completely extraneous matters in con- pared to predatory lending. Schemes ment authorization is the last of many ference, that is, if the point of order against such as payday loans, car title pawns, targets. The majority leader has talked such conduct becomes a dead letter, con- and home equity loan scams harm tens about doing this on an appropriations ferees will acquire unprecedented power. of thousands of more Americans on top bill, on a crop insurance bill, on the They will acquire the power to legislate in a of those shaken down by the main- electronic signatures bill, on the Vio- privileged, unreviewable fashion on virtually stream creditors. Such operators often lence Against Women Act. So disparate any subject. They will be able to completely bypass the deliberative process of the Sen- target those on the economic fringe are we to serve the big banks and cred- like the working poor and the recently ate. Mr. President, this is a highly dangerous it card companies that no bill has been situation. It will make all of us less willing bankrupt. They even claim to be per- safe from this controversial baggage. to send bills to conference and leave all of us forming a public service: providing We are again making a mockery of vulnerable to passage of controversial, extra- loans to the uncreditworthy. It just scope of conference. We are abdicating neous legislation any time a bill goes to con- also happens to be obscenely profitable our right to amend legislation. We are ference. I hope the Senate will not go down to overwhelm vulnerable borrowers abdicating our right to debate legisla- this road. Today the narrow issue is the sta- with debt at usurious rates of interest. tion. And for what? Expediency. Con- tus of one corporation under the labor laws. Hey, who said good deeds don’t get re- But tomorrow the issue might be civil venience. rights, States’ rights, health care, education, warded? However, I am not sure that we have Reading this conference report or anything else. It might be a matter much ever been so brazen in the past. Yes we more sweeping than the labor law issue that makes it clear who has the clout in have combined unrelated, extraneous is before us today. Washington. There is not one provision measures into conference reports. Usu- He was absolutely right. We are head- in this bill that holds the consumer ally because the majority wishes to ed down that slippery slope he de- credit industry truly responsible for pass one bill using the popularity of scribed. For the last three years we their lending habits. My colleagues another. Putting it into a conference talk about the message they want to have handled appropriations in this report makes it privileged. Putting manner. We have combined bills, the send to deadbeat debtors, that bank- into a conference report makes it ruptcy will no longer be a ‘‘free ride’’ text is written by a small group of Sen- unamenable. So they piggy back legis- to a clean slate. Well what message ators and Congressmen and these bills lation. Fine. But this may be the first does this bill send to the banks, and have been presented to the Senate as time in the Senate’s history where the the credit card companies? The mes- an up or down proposition. And now majority has hollowed out a piece of sage is clear: make risky loans, dis- we’re doing it with so-called bank- courage savings, promote excess, and legislation in conference—left nothing ruptcy reform. Congress will bail you out by letting behind but the bill number—and in- Conference reports are privileged. It you be more coercive in your collec- serted a completely unrelated measure. is very difficult for a minority in the tions, by putting barriers in between I challenge my colleagues to walk Senate to stop a conference report as your customers and bankruptcy relief, into any high school civics class room they can with other legislation. That is and by ensuring that the debtor will in America and explain this process. why these conference reports are being emerge from bankruptcy with his vas- Explain this new way that a bill be- used in this way, and that is why the salage to you intact. This is in stark comes law. What the majority has es- rules are supposed to restrict their contrast to the numerous punitive pro- sentially done is started down the road scope. visions of the bill aimed at borrowers. toward a virtual tricameral legisla- Last year, Senator DASCHLE at- The record is clear: lenders routinely ture—House, Senate, and conference tempted to reinstate rule 28 on the discourage healthy borrowing prac- committee. But at least the House and Senate floor. He was voted down, and tices, encourage excessive indebtedness the Senate have the power under the he spoke specifically about how we and impose barriers to paying of debt constitution to amend legislation have corrupted the legislative process all in the name of padding their profits. passed by the other house—measures in the Senate: It would be a bitter irony if Congress adopted by the all-powerful conference I wish this had been a one time event. Un- were to reward big banks, credit card committee are not amendable. fortunately, it happens over and over and companies, retailers and other lenders Is bankruptcy reform so important over. It is a complete emasculation of the for their bad behavior, but that exactly that we should weaken the integrity of process that the Founding Fathers had set the Senate itself? It is not. I question up. It has nothing to do with the legislative what passage of bankruptcy reform leg- process. If you were to write a book on how islation would do. whether any legislation is that impor- a bill becomes a law, you would need several I would characterize the debate like tant, but to make such a blatant mock- volumes. In fact, if the consequences were this and make it very simple for my ery of the legislative process on a bill not so profound, some could say that you colleagues. This is fundamentally a ref- that is going to be vetoed anyway? would need a comic book because it is hilar- erendum on Congress’ priorities and That is effectively dead? Just to make ious to look at the lengths we have gone to you simply need to ask yourself: whose a political point? What have we come thwart and undermine and, in an extraor- side am I on? Am I on the side of the to? dinary way, destroy a process that has working families who need a financial This is a game to the majority. The worked so well for 220 years. fresh start because they are overbur- game is how to move legislation So where does it stop? As long as the dened with debt? Am I for preserving through the Senate with as little inter- majority want to avoid debate, as long this critical safety net for the middle ference as possible from actual Sen- as the majority wants to avoid amend- class? Will I stand with the civil rights ators. ments and as long as Senators will go community, and religious community, I remind my colleagues of what Sen- along to get along we will find our- and the women’s community, and con- ator KENNEDY said 4 years ago when selves forced to cast up or down votes sumer groups and the labor unions who the Senate voted to gut rule XXVIII, on legislation—a rubber stamp yes or fight for ordinary Americans and who the Senate rule limiting the scope of no—with no ability to actually legis- oppose this bill? conference which we are violating with late. Or will you stand with the credit this conference report. Speaking very Each Senator who today votes for card companies, and the big banks, and prophetically he said: this conference report should know they may find themselves in the major- the auto lenders who desperately want The rule that a conference committee can- this bill to pad their profits? I hope the not include extraneous matter is central to ity today, they may be OK with letting choice will be clear to colleagues. the way that the Senate conducts its busi- this bill go because they are not of- Let me say a few words about the ness. When we send a bill to conference we do fended by what it contains, but be fore- process on this legislation, which is so knowing that the conference committee’s warned, the day will come when you

VerDate 11-MAY-2000 01:39 Dec 08, 2000 Jkt 089060 PO 00000 Frm 00025 Fmt 4624 Sfmt 0634 E:\CR\FM\A07DE6.015 pfrm02 PsN: S07PT1 S11688 CONGRESSIONAL RECORD — SENATE December 7, 2000 will be on the other side of this tactic. But let me be clear. Chapter 12, the debtor’s spouse, even if they are sepa- Today it is bankruptcy reform, but bankruptcy relief for family farmers, rated. The spouse is not filing for bank- someday you will be the one protesting can be passed separately within a day ruptcy, and the spouse is providing no the inclusion of a provision that you or two. It is not a problem. So no one support for the debtor or children, but believe is outrageous. from any ag State should believe that that spouse’s income is considered. Regardless of the merits of bank- somehow you have to vote for a harsh This piece of legislation does not pro- ruptcy reform, this is a terrible proc- piece of legislation, that targets the vide a whole lot of help to many hard- ess. I would urge my colleagues to vote most vulnerable citizens, that is com- pressed single parents, most of whom no to send a message to the leadership. pletely one sided, that calls for no ac- are women. Send a message that you want your countability from credit card compa- I have heard some of my colleagues rights as Senators back. nies or larger banks, in order to get out here on the floor talking about eco- Finally, I end on this note. I think bankruptcy relief for family farmers. It nomic growth, low unemployment, say- many in this body believe that a soci- is just simply not true. ing: Given this economic performance, ety is judged by its treatment of its The proponents of this bill have ar- how can you have people filing for most vulnerable members. By that gued—they have been pretty explicit bankruptcy? Surely, it must be, again, standard, this is an exceptionally about this—that often the people who that these are people who feel no stig- rough bill in what has been a very are filing for chapter 7 do so because ma. rough Congress. All the consumer they want to get out of their obliga- You know what. This rosy picture groups oppose this bill, 31 organiza- tions, because they are untrustworthy, masks the fact that there is real pain tions devoted to women and children’s because they are dishonest, and be- in certain industries, and there are cer- issues oppose this legislation. cause they sort of feel no stigma in fil- tain communities and certain families There is no doubt in my mind that ing for bankruptcy. under siege. this is a bad bill. It punishes the vul- I would, one more time, like to point This is a news release from the LTV nerable and rewards the big banks and out on the floor of the Senate that Corporation, Hoyt Lakes, MN, which credit card companies for their own about 50 percent of the people who file had previously announced on May 24, poor practices. And this legislation has for chapter 7 do so because of major 2000, its intention to close the local only gotten worse in the sham con- medical bills that have put them mining operation. They were going to ference. under. Quite often, it becomes a double close at the end of the summer. Now Earlier, I used the word ‘‘injustice’’ whammy: Either you not only are they have said, in this release, that to describe this bill—and that is ex- faced with a major medical bill that they are going to cease permanently on actly right. It will be a bitter irony if puts your family under—we have not February 24, 2001. This is some holiday creditors are able to use a crisis—large- done anything to help our families af- gift from this company to—I don’t ly of their own making—to convince ford health care—or, which is the dou- know—1,300 or 1,400 miners. These min- Congress to decrease borrower’s access ble whammy, you cannot work because ers and their families wonder what is to bankruptcy relief. I hope my col- you are the one who is ill, in which going to happen to them. These are the leagues reject this scheme and reject case you lose your income, or it can be kinds of families who all too often find this bill. Mr. President, I will not repeat what a loved one who is faced with a serious themselves in these difficult economic I said yesterday at the beginning of illness or disabling injury and you are circumstances, even with this booming this debate. I will respond to some the one who takes care of them, in economy, and quite often have to file comments that were made on the floor which case, again, you can lose your for chapter 7. dealing with chapter 12. job and your income. Are we going to make the argument Some of my colleagues have talked So I do not really think we ought to that these families are without a sense about chapter 12 farmers’ bankruptcy be viewing families who file chapter 7 of responsibility? Are we going to relief, and they have made the argu- because of major medical bills as dis- make the argument that these families ment that opposition to this bank- honest or untrustworthy. are loafers and they feel no stigma? ruptcy bill has really held up chapter Now the largest single group of those What does this piece of legislation do 12, which is very important for protec- citizens who file for bankruptcy are to help keep people from having to un- tion of family farmers. I point out to women. They are one-third of all the dergo these wrenching experiences that colleagues that it is precisely the oppo- filers. They are the fastest growing force them into bankruptcy? Nothing. site case. group. Since 1981, the number of Zero. Tough luck. The only thing this A year ago when it first became clear women filing alone increased by more piece of legislation does is make it that this bankruptcy bill, for very good than 700 percent. harder for people to file bankruptcy, to reasons, was not going to move for- It is not so surprising that single par- file chapter 7, to rebuild their lives. ward, under the able leadership of Sen- ents—women with children—are among We do not do anything to help on ators and Representatives—Senators the largest or disproportionate number health care costs. We do not do any- such as Senator GRASSLEY—legislation of people who file for bankruptcy. Be- thing in terms of dealing with the un- was introduced and passed which ex- cause, in addition to medical costs, di- fair dumping of steel with a fair trade tended chapter 12 bankruptcy protec- vorce is a major factor in bankruptcy— policy. We do not do anything in terms tion for farmers. Within about 20 days, income drops—women again are espe- of passing an Elementary and Sec- it was signed by the White House and cially hard hit. Many of them have not ondary Education Act. We do not do passed. No problem. worked prior to divorce, and now they anything on affordable housing. We do This past summer, in June, the House have custody of the children and find not raise the minimum wage. We do passed an extension, but for some rea- themselves in very difficult financial not do anything to make these families son the majority leader took no action circumstances. more economically secure. But instead, over here. Then in October, the House Are single women with children dead- what we do is we make it difficult for passed a 1-year extension for chapter 12 beats? All too much of this bill as- people to rebuild their lives. for family farmers. Again, the majority sumes they are. The new This is sham reform. When you push leader took no action over here. nondischargeability of credit card debt the rhetoric aside, one thing becomes This can pass within 24 hours. What will hit hard those women who use the clear: The bankruptcy system is a crit- we have here is a bit of a game going cards to tide them over after divorce ical safety net for many middle-class, on where chapter 12 becomes held hos- until their income stabilizes. The safe working-class, low-income families. It tage to a bankruptcy bill with many harbor in the conference report, which is a difficult, demoralizing process, but harsh features which will be vetoed by proponents argue will shield low- and it is a critical safety net for families. the President and, in my view, either moderate-income debtors from the And we are tearing up that safety net. the veto will be sustained or we will means test, will not benefit many sin- I say to my colleagues, there may be not be here and it will be pocket vetoed gle mothers who need the help the many different standards that different and it will not become law and should most because it is based upon the com- Members have when they bring legisla- not become law. bined income of the debtor and the tion to the floor of the Senate. We

VerDate 11-MAY-2000 01:39 Dec 08, 2000 Jkt 089060 PO 00000 Frm 00026 Fmt 4624 Sfmt 0634 E:\CR\FM\A07DE6.017 pfrm02 PsN: S07PT1 December 7, 2000 CONGRESSIONAL RECORD — SENATE S11689 come from different backgrounds. We Senate passed before. Not only does the played this Congress like a violin. And come from different States. We have majority leader want to ram through what do you know, we are trying to different philosophies about the role of bankruptcy legislation on the State ram through this bankruptcy bill in Government in society. We have dif- Department authorization conference the 11th hour as the 106th Congress ferent priorities. But, for God’s sake, report, which he has literally hijacked comes to a close. there should be one principle that all of for this purpose, there is no question In reading the consumer credit indus- us can get behind, and that is that we that this is a significantly worse piece try’s propaganda, you would think the should do no harm to the most vulner- of legislation—I heard colleagues yes- story of bankruptcy in America is one able people and most vulnerable fami- terday say ‘‘better’’—than passed by of large numbers of irresponsible, high- lies in this country. the Senate. Does this piece of legisla- income borrowers and their conniving I believe strongly—and I have argued tion take on wealthy debtors who file attorneys using the law to take advan- yesterday and today—that that is ex- frivolous claims and shield their assets tage of naive and overly trusting lend- actly what we are doing. That is what in multimillion-dollar mansions? No. It ers. As it turns out, that picture of the is at stake here. This is a debate about guts the cap on the homestead exemp- debtors is almost completely inac- priorities. This is a debate about what tion which was adopted by the Senate. curate. The number of bankruptcies side you are on. This is a debate about It was taken out in conference. has fallen steadily over the past sev- with whom you stand. Will you stand I ask my colleagues who support this eral months. It turns out that the peo- with the big banks and credit card bill, how can you claim that this bill is ple about whom we are talking are vul- companies or will you stand with hard- designed to crack down on wealthy nerable citizens. The major reason is pressed families, with seniors, with sin- scoff laws without closing the massive major medical costs. I have made that gle women with children, with African homestead loophole that exists in five argument. Americans, with Hispanics, with people States? And in a bill that falls so As high-cost debt, credit cards, retail of color, with consumers? harshly on the backs of low- and mod- charge cards and financing plans for What the Congress is poised to do erate-income individuals, you have a consumer goods have skyrocketed in here with this bill is worse within the huge exemption for people who can go recent years, so have the number of context of this Congress because this is buy million-dollar plus mansions. How bankruptcy filings. As the consumer a Congress that has failed to address do you explain that back home? How credit industry has begun to aggres- skyrocketing drug costs for seniors; will you explain that you supported sively court the poor and the vulner- this is a Congress that has failed to letting wealthy debtors shield their as- able, bankruptcies have risen. Credit pass a Patients’ Bill of Rights; this is a sets from creditors at the same time card companies brazenly dangle lit- Congress that has failed to make sure you voted to end the practice under erally billions of credit card offers to that Americans have access to afford- current law of stopping eviction pro- high-debt families every year. There is able health care; this is a Congress ceedings against tenants who were be- no accountability for them. They en- that has failed to invest in education; hind on rent and who filed for bank- courage credit card holders to make this is a Congress that has failed to in- ruptcy? Poor tenants are evicted. low payments toward the card bal- vest in affordable child care; this is a Wealthy people can shield their assets ances, guaranteeing that a few $100 in Congress that has failed to raise the and go buy multimillion-dollar homes. clothing or food will take years to pay minimum wage. But instead, with this On the one hand, we gut tenants’ off. The lengths these companies go to bill we declare war on working fami- rights, while on the other hand we keep their consumers in debt is ridicu- lies. shield wealthy homeowners. That is lous. What is clear is that this piece of leg- what this piece of legislation is about. So in the interest of full disclosure, islation will be a death of a thousand Nor does this bill contain another something that the industry itself is cuts for all debtors regardless of amendment offered by Senator SCHU- not very good at, I would like my col- whether the means test applies. MER and adopted by the Senate that leagues to be aware of what the credit There are numerous provisions in the would prevent violators of the Fair Ac- card industry is practicing even as it bankruptcy reform bill designed to cess to Clinic Entrances Act, which preaches the sermon of responsible bor- raise the cost of bankruptcy, to delay protects women’s health clinics, from rowing. After all, debt involves a bor- its protection, to reduce the oppor- using the bankruptcy system to walk rower and a lender. Poor choice, irre- tunity for a fresh start. But rather away from their punishment. sponsible behavior by either party can than falling heaviest on the supposed Some folks are watching the progress make the transaction go sour. So how rash of wealthy abusers of the Code, of this bill and they are watching the responsible has the industry been? It they will fall hardest on low- and mid- way this bill has developed over the depends upon how you look at it. dle-income families who desperately last year with a considerable amount On the one hand, consumer lending is need this safety net of bankruptcy. of awe and envy. Can my colleagues terrifically profitable, with high-cost I commend to my colleagues, but I name one other bill on which the lead- credit card lending the most profitable will not take a lot of time on it, the ership has worked so hard and with of all, except for perhaps even higher May 15, 2000, issue of Time magazine such determination to move by any cost credit such as payday loans. So I whose cover story on so-called bank- and all means necessary? Certainly not guess by the standard of responsibility ruptcy reform legislation was entitled an increase in the minimum wage; that to the bottom line, this industry is ‘‘Soaked by Congress.’’ I hope they will is not a priority. Certainly not a mean- doing great. read it. ingful prescription drug benefit for sen- On the other hand, if you define re- I will quote from Brady Williamson, iors; that is not a priority. Certainly sponsibility as promoting fiscal health Chairman of the National Bankruptcy not reauthorization of the Elementary among families, educating on judicious Commission. Please remember, 116 law Secondary Education Act. On many use of credit, ensuring that borrowers professors in this country who teach issues, on most issues, there has been do not go beyond their means, then it bankruptcy law, who do their scholar- nothing done in this do-nothing Con- is hard to imagine how the financial ship in this area, have said this bill is gress. But on the so-called bankruptcy services industry could be bigger dead- harsh and one-sided, without balance, reform, the Senate and House leader- beats. and should not pass. ship can’t seem to get enough. One can From studies from the Office of the Brady Williamson, Chairman of the only wonder what we could have ac- Comptroller of Currency, some of the National Bankruptcy Review Commis- complished for working families if the settlements that have been reached sion, notes in the article from Time leadership had the same determination with Providian Financial Corporation, magazine: The bankruptcy bill would on these other issues. Unfortunately, Sears & Roebuck, American Capital condemn many working families to those other issues did not have the fi- Corporation, a subsidiary of GE, the ‘‘what essentially is a life term in debt- nancial services industry behind them. Department of Justice brought an anti- ors’ prison. You have to give them credit, no pun trust suit against Visa and Mastercard. I will talk a little bit about this piece intended. Over the past couple of years, We have example after example after of legislation in relation to what the the financial services industry has example of abuses by this industry but

VerDate 11-MAY-2000 01:39 Dec 08, 2000 Jkt 089060 PO 00000 Frm 00027 Fmt 4624 Sfmt 0634 E:\CR\FM\G07DE6.058 pfrm02 PsN: S07PT1 S11690 CONGRESSIONAL RECORD — SENATE December 7, 2000 not one word in this piece of legislation America that it is immoral and uneth- ple have left with me due to their poor man- that calls for any accountability. ical for people with the ability and the agement and bankruptcy. In case my colleagues miss the bla- means to repay some of their debt to That may be a small business person tant hypocrisy of what is going on go into bankruptcy court and be dis- who, unlike a lot of corporations, can- here, the big banks and credit card charged of that debt. not pass on this $400 per family in addi- companies are pushing to rig the sys- It is particularly wrong when it hurts tional costs for goods and services be- tem so you cannot file for bankruptcy the very same low-income and middle- cause somebody else isn’t paying their unless you perform credit counseling, income people about whom the Senator bills. This person may be so small that at the same time that they are jeopard- from Minnesota talks. They have to they have to absorb those costs un- izing the health of the credit coun- pay $400 more per family per year for fairly and may be putting their own seling industry by pumping credit goods and services. They pay a higher business in jeopardy. cards, by themselves abusing the sys- fee or price because somebody else isn’t Another constituent from Cedar Rap- tem, and hardly making it easier for paying their bills. That is not going to ids: people, only making it more difficult. be absorbed by the business in most Bankruptcy reform will force the Amer- To make it simple for my colleagues, cases; it is going to be passed on to the ican people to become more responsible for this debate is fundamentally a ref- consumer. their actions. Bankruptcy does not seem to erendum on Congress’s priorities. You On the basis of ability to pay, par- carry any degree of shame. It is almost re- simply need to ask yourself again: ticularly for the necessities of life of garded as a right or entitlement. Whose side am I on? food and clothing and things of that If it has become a right or entitle- Are you on the side of working fami- nature, it is going to hurt the low-in- ment, the statistics of the last 6 or 7 lies who need a financially fresh start come people and middle-income people years show an increase of about 700,000 because they are overburdened with of America disproportionately because to 1.4 million. It is an example maybe debt? Fifty percent of bankruptcies are somebody else isn’t paying their bills. of some additional people in America because of major medical bills. Are you There is an understanding at the grass- seeing it as a way to manage their fi- for preserving this critical safety net roots of America that this just isn’t nances. It becomes a financial manage- for the middle class? Will you stand right. That is why this legislation has ment tool for some. with the civil rights community and such overwhelming support. Another constituent from Waverly, the religious community and the wom- I refer to this chart because it has IA: en’s community and consumer groups letters from my constituents. I bet the Many don’t think the business is who loses. and labor unions who fight for ordinary Senators from Minnesota and other We make it too easy now. Americans who oppose this bill or will States are getting letters from their A constituent from Washington, IA: you stand with the credit card compa- constituents saying the same thing. The present bankruptcy laws are a joke. nies and the big banks and the auto We have a letter from a constituent One local man has declared bankruptcy at lenders who desperately want this bill of mine in Des Moines who says: least four times at the expense of suppliers to him. He just laughs at it. to pad their profits? It is insane that such practice has been al- I hope there is a clear choice for Sen- lowed to continue causing higher prices to There is a person who quite obviously ators. consumers. Debtors should be required to figured out the ease of using bank- Mr. President, I reserve the remain- pay their debts. ruptcy as a financial planning tool. der of my time. A constituent from Keokuk, IA: A Cedar Falls constituent: The PRESIDING OFFICER. Who Bankruptcies are out of hand. It is time to It is way too easy to avoid responsibility. yields time? make people responsible for their actions. Do From Indiana, IA: Mr. GRASSLEY. Mr. President, I we need to say this? If one assumes debt, they need to pay it yield myself such time as I might con- In other words, it is unconscionable off. We have got to take responsibility for sume. to that constituent that we would have our purchases. First of all, in response to the Sen- a situation with 1.4 million bank- That reminds me of the President in ator from Minnesota, I was a little bit ruptcies in America, with the number his speeches during his second term, amused at the use of the words ‘‘bla- doubling in 5 or 6 years, at a time when and maybe even at the ending of his tant hypocrisy.’’ I don’t question his we have the best economic growth in first term. He always talked about the use of those words at all. But the fact our Nation. importance of individual responsibility is that this bill passed with 83 Senators Another constituent: and individuals have to be responsible. voting for it. It passed the Senate and We need to make more people responsible As we hopefully present this bill to went to conference. Three-fourths of for their savings while at the same time pro- the President of the United States the members of his caucus voted for tecting those who fall on hard times. I real- today, I want to remind President Clin- this legislation. If there is blatant hy- ize this is a delicate balance. But the way it ton of how often he talked about the pocrisy, it is very bipartisan hypocrisy. is now, there is very little change going this necessity of individual responsibility. Mr. WELLSTONE. Mr. President, route. If he believes that—and I believe he will the Senator yield for a question? This bill is a very delicate balance. does believe it—then signing this bill is Mr. GRASSLEY. I sure will, only for That is why it passed with 83 votes. It very important to fulfill his own state- the purpose of a question. also preserves what this constituent ment that government ought to pro- Mr. WELLSTONE. My understanding said in the letter. She understands that mote individual responsibility. is that the bill passed with the Schu- there are some people who go into debt A constituent from Harlan, IA: mer provision in it, and it also dealt through no fault of their own. And for Too many people use bankruptcy as a way with the homestead exemption. That is the 100-year history of the bankruptcy out. We need to make sure people are held a different bill from the one we are code of the United States, we have rec- accountable for all of their debts. considering right now. Am I not cor- ognized that certain people may be in From Fort Madison: rect? hard times through no fault of their Personal responsibility is a must in our Mr. GRASSLEY. The Senator is cor- own and they are entitled to a fresh country. Sickness or loss of a job is one rect, but his reference was in regard to start. This allows that fresh start. But, thing, but the majority of people just do not the credit card industry—not the Schu- at the same time for those who have pay and spend their money elsewhere know- mer amendment and not the provision the ability to repay, it sends a clear ing they can unload the debt with the help of on homestead. signal to not go into bankruptcy court the courts. The PRESIDING OFFICER. The Sen- because you are not going to get off That is a person who understands the ator from . scot-free anymore. basic principles of bankruptcy: No. 1, Mr. GRASSLEY. Mr. President, sec- Another constituent from Fon- sickness, loss of a job, something be- ond, the interest in this legislation and tanelle, IA, says: yond the control of an individual, there the reason this is such an important People need to be more responsible for ought to be, and there has been for 100 piece of legislation is that there is a lot their debts. As a small business owner, I years under a bankruptcy code, the of understanding at the grassroots of have had to withstand several large bills peo- right for a fresh start.

VerDate 06-DEC-2000 03:21 Dec 08, 2000 Jkt 089060 PO 00000 Frm 00028 Fmt 4624 Sfmt 0634 E:\CR\FM\G07DE6.060 pfrm02 PsN: S07PT1 December 7, 2000 CONGRESSIONAL RECORD — SENATE S11691 The other side of that is whether next couple of hours he will not be suc- on the Iron Range are going to be with- there is an ability to repay. People cessful in what he has been so success- out a job. should pay what they can according to ful doing for the last year and a half, I know the way this bill works. It is the ability to pay the debt. It also rec- not wanting this bill to pass. He has an honest disagreement, but it is a ognizes there are some people, again, been a tough competitor and one I wrong disagreement. If one of these who use this as a financial planning enjoy competing against. But I think families 2 months from now has a tool. he is very much wrong as he ap- major illness—now they are going to One of my constituents I quote is proaches this bill. The evidence is the have trouble paying their mortgage— from Cedar Rapids: wide bipartisan support it has had not do you know what this bill does? This I think people taking bankruptcy should only in this body, but it passed origi- bill doesn’t figure their income in Feb- have to pay the money back. . . . They nally by a veto-proof margin in the ruary, after they have been laid off. should have learned to work for and pay for House of Representatives. This bill figures their average income what they get. I yield the floor. over the prior 6 months, during all the Maybe that statement is not quite as The PRESIDING OFFICER (Mr. times they were gainfully employed. sympathetic to those people who are in VOINOVICH). The Senator from Min- That is not going to work for these bankruptcy through no fault of their nesota. miners, that is not going to work for own. I don’t know for sure. But I am Mr. WELLSTONE. First of all, let me these hard-pressed working families, happy to tell that constituent the prin- say I like my colleague from Iowa so and you had better believe I am going ciple behind this bill, the principle be- much that I will let his comment about to be out here on the Senate floor rais- hind the bankruptcy code of the last the Clinton recession pass and not re- ing Cain in behalf of these Minneso- 100 years, that there is a social policy spond to that. tans. in this country that some people are in I also want to make it clear that my Finally, let me one more time, before debt through no fault of their own and use of the word ‘‘hypocrisy’’ of course my colleague from Vermont takes the they are entitled to a fresh start. She was not aimed at any Senator and cer- floor, remind all Senators, but espe- thought there should never be a bank- tainly not the Senator from Iowa, who cially Democrats: This is the majority ruptcy or nobody should be able to go I actually really love working with leader, I believe, who has made a to bankruptcy court. even though we don’t agree on all poli- mockery of the legislative process. We That is the balance of this legisla- cies. have taken a State Department em- tion. This is a balance that has been I have to say one more time that bassy bill and gutted it. There is not a recognized by the vast majority of this there is a lot of hypocrisy in a piece of word left; there is only a number. In- body with those 83 votes we had for legislation that on the one hand goes stead, you had a bankruptcy bill put original passage. There are things after this percentage and on the other in, completely unrelated—never mind about this legislation I don’t like. hand in conference committee knocks rule XXVIII—without the deliberation, There are some things that even the out an amendment, so that now we without the debate, without the ability Senator from Minnesota said should be have millionaires in a position to be offer an amendment. This is not the tightened up. I won’t go into what able to shield their money and go buy way we legislate. This is the Senate at those are, but I agree with him. multimillion-dollar homes in other its very worst. In legislation, particularly as this States. There may be a different majority 2 legislation is, with varying interests— If that is not hypocrisy, I don’t know years from now. We can do the same some not wanting any and some want- what is. If that doesn’t tell you about thing to the minority. Frankly, it ing a lot more—compromise is the how lopsided a piece of legislation this should not be done by anyone. I cer- name of the game. There hasn’t been a is, I don’t know what does. tainly hope Democrats will vote compromise of basic principle here. I also think it is more than just a lit- against this. The minority leader yes- There may be a compromise of degree, tle hypocritical to have a piece of leg- terday said he is going to vote against and I am not going to give up just be- islation that in the main targets the this bill because, he said, it does not cause this bill passes and it is not as most vulnerable citizens—I have made meet the standard of fairness. And it much in the direction he wants or I that point over and over again—with does not—not on substance and not on happen to agree with him on a couple study after study saying that the high- process, not on the basic standard of of points and perhaps I might move in est percentage would be 12 percent, what the Senate should be about. I that direction in the future. probably 3 percent of the people at hope Senators will vote against this But we have had 20 years without most ‘‘gaming’’ this. piece of legislation. bankruptcy reform. We have gone from People who file for chapter 7 do so be- I yield the floor. 300,000 bankruptcies filed per year in cause they are in difficult cir- The PRESIDING OFFICER. The Sen- the early 1980s to 1.4 per million now, cumstances. Major medical illness puts ator from Vermont. and we have had studies showing it will them under, a divorce, loss of job. Mr. LEAHY. Mr. President, par- go up another 15 percent. These are in But at the same time that we are liamentary inquiry: How much time is good times. What about bad times, if now going to make it virtually impos- available to the Senator from we have a recession in the future? sible for many families who find them- Vermont? There are indications of a Clinton re- selves in difficult economic cir- The PRESIDING OFFICER. The Sen- cession coming on now with the indices cumstances to rebuild their lives, we ator has 29 minutes. turning down and confidence in the don’t have one word to say by way of Mr. LEAHY. I thank the Chair. I like economy turning down and the manu- demanding some accountability for to see him back. I wish we were not facturing sector being in recession. these credit card companies that push still in session, but I suspect the Pre- Maybe we are starting in this adminis- this debt on to people, that send these siding Officer probably had things he tration with a recession. Then if we are cards to our kids, that do all the solici- might have planned to be doing during at 1.4 million when times are good, how tation, that charge exorbitant interest this time, as did my distinguished many hundred thousands more are we rates, that are reckless in their lending friend from Iowa. going to have when we do have bad policies. Not a word. Not a word. My distinguished friend from Iowa times? Could it be these are the people with and I have been here for numerous When we have bad economic times, more clout in the Congress? I fear that lame duck sessions. After 26 years here, high interest rates are not good for the is part of the problem. I have yet to see what good was ever economy. We had testimony from Sec- I say to my colleague from Iowa and accomplished in one of these lame duck retary Summers that bankruptcies will other Senators, it is simply not the sessions. I think the statement made drive up interest rates. case that most of the people who file by my distinguished friend from Min- I appreciate very much my friend for bankruptcy are gaming the system. nesota just now emphasizes the kind of from Minnesota and his strong position Let me give a case study which goes to mischief that sometimes happens in against this bill, even though I dis- why this bill is so profoundly wrong. lame duck sessions, when people want agree with it. Hopefully, in the very LTV is going to shut down. Miners up to leave, yet we have, as in this case, a

VerDate 06-DEC-2000 03:21 Dec 08, 2000 Jkt 089060 PO 00000 Frm 00029 Fmt 4624 Sfmt 0634 E:\CR\FM\G07DE6.072 pfrm02 PsN: S07PT1 S11692 CONGRESSIONAL RECORD — SENATE December 7, 2000 bankruptcy bill that none of the Demo- I am the ranking Democrat currently This is unfortunate, since both crats had a chance, really, to do much on the Senate Judiciary Committee. I Democrats and the administration about. It gets put in—what was it, I was not a conferee of the conference re- have been trying to negotiate in good ask my friend from Minnesota, a bill port. Instead, the Republican leader- faith with the Republicans to achieve on embassies? ship created a sham conference to cre- fair and balanced bankruptcy legisla- Mr. WELLSTONE addressed the ate and file this flawed bankruptcy bill tion. Everyone in this Chamber knows Chair. to make sure the Democrats would not we have to have some bankruptcy re- Mr. LEAHY. I yield on my time. have any say over it. It might be a nice form legislation. But it cannot be one Mr. WELLSTONE. My colleague is exercise. It might look good in fund- sided to any one special interest, it has correct. That is right. Though there is raising letters. But when you have a to be balanced. not a word about that. There is nothing Democratic President, it is obvious we There was not even a meeting of the left except for the bill number. are spending hundreds of thousands of sham conference committee, as far as I Mr. LEAHY. This was not a case dollars of time, effort, and taxpayer can tell. And the House had passed— where there was a concern the embas- money up here to pass something that talk about a CYA; that means ‘‘care- sies were all going bankrupt? The em- is not going to be signed into law. It fully you’re allowed,’’—but, in an effort bassy in London or in Moscow or, heav- may help for the next fundraiser, but it to make sure nobody questions them en forbid, in Dublin, might be in bank- does not help bringing about the kind about this sham process that has ruptcy court in the Southern District of bankruptcy reform we actually need slipped through behind closed doors, of New York? That is not the case? the House passed a 398–1 vote to in- Mr. WELLSTONE. I say to my col- in this country. The Senate had requested a con- league from Vermont that argument struct conferees to insist on a public ference in August 1999 on legislation to has not been made. So far, that argu- meeting of the conference with open enhance security of U.S. missions and ment has not been made. debate. By God, we are for government Mr. LEAHY. I thank my friend from the security of personnel overseas and in the sunshine, 398-to-1. Are we not Minnesota. I appreciate his pointing to authorize appropriations for the virtuous people in the other body? And this out. I just want students who State Department, what the distin- the press releases went out. Of course, might look at this afterward and won- guished Senator from Minnesota was 2 hours later, the sham conference re- der what bankruptcy has to do with just talking about. That did not pro- port was filed, the one that was done embassies to go back and read what the ceed. behind closed doors, not done in the distinguished Senator from Minnesota On October 11, 2000, the House ap- open. But everybody could say: Why, I says, which is, of course, that it has ab- pointed conferees not from the com- voted to have that open, 398–1. solutely nothing to do with embassies. mittee with jurisdiction over any em- The bipartisan informal process that It is a parliamentary trick to get a bassy security issues, but from the produced many improvements to the piece of special interest legislation House Judiciary Committee. Then a Senate-passed bill with respect to its through. few hours later, out of nowhere, the bankruptcy provisions was for nought It is unfortunate this kind of trick leadership filed a conference report in the end. We worked in an informal had to be carried out because the Re- that strikes every aspect of the under- bipartisan conference and made these publican majority could have worked lying legislation on which the two improvements. We dropped the con- with the President, they could have Houses had gone to conference and put troversial nonrelevant amendments on worked with the Democrats, to pass in this wholly unrelated matter with the 3-year minimum wage increase, re- bankruptcy legislation that is more reference to a bankruptcy bill that had gressive tax cuts, mandatory minimum balanced and more fair. We did this 2 or not even passed. It had only been intro- sentences for certain drug offenses, and 3 years ago. I remember Senator duced that day. There was no debate, private school vouchers. GRASSLEY, Senator DURBIN, others, nothing. It is like: Whoops, open the We added a new provision to include worked together and we passed a piece closet door, let the special interests a $6,000 floor in the means test to pro- of bankruptcy legislation that was here out, slam it down, and please pass it. tect low-income debtors. in the Senate. It was strongly backed We Americans are great at telling We added a new provision to take by both Democrats and Republicans. I other countries how to run democ- into account up to 10 percent of the think we passed it by 97 or 98 votes. racies. We each tell them how to run debtor’s administrative expenses in the There was only one vote against it. It elections. I hope in the last couple of means test calculations. was overwhelmingly passed. It shows years those countries that get lectures We added a new provision to allow for what happens when Republicans and from us about how to run their democ- adjustments of up to 5 percent from the Democrats work together. racies have not been watching how IRS standards for reasonable food and Mr. President, I am disappointed that matters have slipped before the U.S. clothing expenses in the means test the majority refuses to work with the Senate. Matters of great consequence calculations to take into account the President and us to pass bankruptcy are slipped before the U.S. Senate with- regional difference in costs. legislation that is better balanced and out any votes, with the hope they will We struck the provision that exempt- more fair. Despite the President’s re- slip through in the dark of night. I ed creditors with small claims from peated attempts to offer reasonable hope those countries, when we tell sanctions against creditors who file compromises for the last six months, them how to run elections, are not abusive motions, and, thus, we made the majority is continuing to push this watching—I don’t know—Presidential all creditors subject to these sanctions unfair and unbalanced bill. It appears elections or anything like that in our for coercive behavior. that the same mistakes that killed a country. We expanded the eligibility for the chance for passage of the bipartisan I look at Canada. I come from the waiver of filing fees to debtors with in- balanced bankruptcy reform 2 years State of Vermont. I think of Canada as come less than 150 percent of the pov- ago, in the last Congress, are being re- that giant to the north. I look at Can- erty line. peated in this Congress. We should ada. The whole country votes with All of these things we did with Demo- work together to finish the work of the paper ballots. Two hours later, they crats and Republicans working to- 106th Congress. Instead, there seems to have them all hand counted with no gether, each side giving some things, be this effort to pass flawed legislation mistakes and the country accepts the each side adding things. We had a bet- that virtually guarantees a Presi- result. I hope we won’t lecture them as ter bill. We even added a new tem- dential veto. we often do. porary bankruptcy judgeship for the I had hoped we would have acted on But I hope we will not tell people this following courts: the District of Dela- the administration’s four letters on the is the way to pass legislation. I hope ware, the Southern District of Georgia, resolution of key issues needed for the we will not tell countries how to do it the Eastern District of North Carolina, President to sign a fair and balanced based on this bill. It is an autocratic, and the District of Puerto Rico. bill, that we could have at least met to behind-closed-doors, undemocratic Finally, we added privacy protections discuss them so we could have a bill process, and it makes a mockery of the for the financial information of debtors the President could sign. legislative process. to protect patient medical records in

VerDate 06-DEC-2000 03:21 Dec 08, 2000 Jkt 089060 PO 00000 Frm 00030 Fmt 4624 Sfmt 0634 E:\CR\FM\G07DE6.074 pfrm02 PsN: S07PT1 December 7, 2000 CONGRESSIONAL RECORD — SENATE S11693 bankruptcy health care businesses, to I am deeply disturbed that some in Con- I mention that also not just because destroy all debtors’ tax returns after 3 gress still object to a reasonable provision I am from Vermont, but when I years of the close of the case, to pro- that would end demonstrated abuse of the checked the Internet file, I found that vide Congress with the authority to bankruptcy system. We cannot tolerate abu- along with this man’s name, my name sive bankruptcy filings to avoid the legal add appropriate privacy safeguards to consequences of violence, vandalism, and was there. I was listed as one of the protect electronic bankruptcy data, harassment used to deny access to legal people who should be shot and killed. I and to add safeguards for the collection health services. An effective approach, such take that a little bit personally, espe- of bankruptcy data. as the one offered by Senator SCHUMER’s cially when the FBI are now looking That was a good bipartisan start with amendment, should be included in the final for a man from my State who is sus- Republicans and Democrats working legislation. pected of shooting and killing one of together. We could have a fair and bal- A few weeks later the President the people whose name was on that list anced final bankruptcy reform bill. It again wrote to congressional leaders to with mine. Dr. Slepian’s name has been was something people on all sides of reiterate his position saying: crossed out. Mine has been left on the the issue were applauding. They were I cannot support a bankruptcy bill that list of those who should be shot and saying: Finally, Republicans and fails to require accountability and responsi- killed. Democrats are working together. bility from those who use violence, van- Frankly, I find it a little bit difficult Do you know what happened? Some dalism, intimidation, and harassment to to think, when these people are sued in the Republican majority found this deny others access to legal health services. for this kind of thing, and judgments was going on and said: We can’t have . . . The final legislation must include an ef- are rendered against them, that they it; we can’t have that balance; it has to fective approach to this problem, such as the one contained in the amendment by Senator can just go into bankruptcy court and be one sided; it has to be our way or no say: See ya. way, and they stopped those meetings. SCHUMER, which passed the Senate by a vote of 80–17. So nobody will think that there is We actually resolved most of the any kind of conflict of interest, I am issues between the two bills. There This is a no-brainer. We already de- bated it and voted on it 80–17. We have not part of any suit against them. I am were two key issues outstanding. We not going to do that. But for those who could have brought it back for a vote. a hard time getting an 80–17 vote here to support the bean soup in the Senate have, they ought to at least get their One was discharge of penalties for vio- settlement or other judgment, win or lence against family planning clinics, cafeteria. Gene Sperling, national economic ad- lose, in the courts. But we should not medical clinics, and the other was a let anybody walk into our Federal problem with wealthy debtors who used viser to the President, in his letter of bankruptcy court—because of a huge overly broad homestead exemptions to September 22, made it clear that Presi- loophole that this Congress does not shield assets from creditors by putting dent Clinton would veto any bank- have the guts to close—and just walk money into multimillion-dollar houses, ruptcy reform legislation that did not end this abuse of bankruptcy law. He home scot-free. declaring bankruptcy, and thumbing It is hypocrisy at the worst, when we their nose at their creditors. said: voted 80–17 in this body to close the Everything I heard told me we could Our society should not tolerate those who loophole, and when all but one Member have reached bipartisan agreement on develop a strategy to first threaten and in- these matters, too. Now this backdoor timidate doctors, health care professionals, of the other body voted to have an open conference report does not adequately or their patients and then turn to the bank- conference on this, that both bodies ig- address either of these two abuses cur- ruptcy courts to avoid legal liability for nored that. That is hypocrisy. It is rently in the bankruptcy system. their actions. I reiterate that the President wrong. The Senate passed the Schumer will not sign any legislation that does not If anybody thinks they do not know contain effective means to ensure account- amendment to prevent the discharge of the reason why some people in this ability and responsibility of perpetrators of country look at the Congress and ask penalties for violence against family clinic violence. planning clinics. This was not a par- what is going on, there is one of your Mr. President, how much time is still tisan vote. It was 80–17. People said, no reasons right there. Maybe we ought to available to the Senator from matter how you feel about abortion, no look at some of the elections this year Vermont? matter how you feel about medical and say: Our people are saying they are The PRESIDING OFFICER. Just matters or family planning, we are not fed up with this. under 13 minutes. going to condone violence against le- In fact, this suspect is still at large, Mr. LEAHY. I thank the Chair. gitimate medical clinics. and with a reward of $1 million for his Does the conference report reflect We should not use the bankruptcy arrest. this? No. There is not a single provi- law to shield purveyors of violence. We You tell me—anybody in this body— sion to end abusive bankruptcy filings should close this loophole. you tell me—anybody who is listening used to avoid the legal consequences of Six defendants in the Nuremberg files to this debate—that somehow it is fair violence, vandalism, and harassment to web site case filed bankruptcy to avoid to let people such as that escape be- deny access to legal health services. As their debts under the law. This web site cause of a loophole that we do not have a result, we could have all kinds of depicted murder weapons with dripping the guts to close in our bankruptcy clinic violence. If you are sued for it, blood and advocated the killing of pro- law. just declare bankruptcy and get away choice physicians and public figures. Clearly, the perpetrators of violence with it. That is wrong. Indeed, as some of these people were and illegal intimidation should not be The administration made it crystal killed, their names were crossed out on able to abuse the bankruptcy laws to clear in four letters to congressional the web site. Why should somebody avoid responsibility for their actions. leaders that an end to this abuse of the who is sued for this kind of violence, Bankruptcy should not be used to current bankruptcy system was needed purveying this kind of violence, be al- avoid the legal consequence of clinic to gain the President’s signature. Four lowed to go to bankruptcy court and violence, harassment, and intimida- times they said they were not going to say, ‘‘See ya, I’m home free’’? tion. allow people to firebomb clinics, harass Dr. Barnett Slepian, who was mur- If we do not want to do something people, assault people, and if they are dered 2 years ago in Buffalo on October against violence, apparently we do not sued, to simply say: We will declare 23, 1998, was on this heinous Internet want to do anything in bankruptcy to bankruptcy. Four times. site. After he was murdered, his name offend those who have multimillion- The OMB Director wrote to was crossed out. dollar estates in the right States. Congressional leaders on May 12, 2000: If I can make a personal note, when In the Senate, we passed, by a vote of The abuses of the bankruptcy system must Dr. Slepian was murdered in upstate 76–22, an amendment to create a be stemmed, including abuse by those who New York because his name was on the $100,000 nationwide cap on any home- would use bankruptcy to avoid penalties for Nuremberg files web site, within days stead exemption. Again, we could say violence against family planning clinics. they determined the chief suspect was we are only concerned about the little The President wrote congressional a man from Vermont. In fact, there is people. We are concerned about people leaders on June 9: now an arrest warrant out for him. paying the debt. All people—we want

VerDate 06-DEC-2000 03:21 Dec 08, 2000 Jkt 089060 PO 00000 Frm 00031 Fmt 4624 Sfmt 0634 E:\CR\FM\G07DE6.076 pfrm02 PsN: S07PT1 S11694 CONGRESSIONAL RECORD — SENATE December 7, 2000 everybody to pay their bills. Whether residence shortly before bankruptcy to trict of Vermont dropped 11 percent they are rich or poor, we want them to take advantage of large State exemp- compared to 1998 and fell an additional pay their bills. We are equal to every- tions to shield assets from their credi- 20 percent so far this year as compared body. tors. But the proposal does not address to last year that is approximately a Of course, that would have elimi- a more fundamental concern: unlim- one-third decrease over the last two nated one of the most flagrant abuses ited homestead exemptions that allow years. in bankruptcy laws—debtors moving to wealthy debtors in some States to con- Clearly, the justification that we expensive homes in a handful of States tinue to live in lavish homes. In light must pass this flawed measure now be- with unlimited exemptions, declaring of how other provisions designed to cause of a bankruptcy crisis rings hol- bankruptcy, and then keeping their stem abuse will affect moderate-in- low given the latest bankruptcy filing millions of dollars in the homes that come debtors, it is unfair to leave this facts across the nation. There is no they have in those States. loophole for the wealthy in place. need to rush a bad bill into law. Senator KOHL, along with Senator A few weeks ago, it appeared the ma- On June 9, 2000, President Clinton SESSIONS, put together an amendment jority was finally beginning to under- wrote to congressional leaders that: I that the Senate overwhelmingly adopt- stand and accept the President’s com- have long made clear my support for ed. I am beginning to see why every- monsense approach by agreeing to a legislation that would encourage re- body voted for it. Some must have got- federal cap on homestead exemptions. sponsibility and reduce abuses of the ten word that it would be gutted as On September 22, Gene Sperling, Na- bankruptcy system on the part of debt- soon as it got off the floor, gutted be- tional Economic Advisor to the Presi- ors and creditors alike. We also must hind closed doors, where nobody votes dent, wrote to Majority Leader LOTT: ensure that a reasonable fresh start is and nobody’s fingerprints are on them. The President appreciates your signifi- available for those who turn to bank- Even to talk about: OK, you want to cant movement on the homestead ruptcy as a last resort when facing di- raise it to $100,000? Raise it to $500,000. issue. We realize that the offer goes vorce, unemployment, illness, and un- Then all of a sudden we find it is gut- against strongly held views of some insured medical expenses. Bankruptcy ted. It is going to build a lot of homes members of your caucus, and we are reform legislation should strike the in Texas and Florida. It is an amazing grateful for the effort. While we had right balance. coincidence those two States are going proposed placing a cap of $250,000 on Unfortunately, this conference report to have the advantage of not having the size of state homestead exemp- fails to strike that right balance. The that provision. If you want to declare tions, we could accept a homestead cap President will and should veto it. bankruptcy, just put your millions of of $500,000, were we to reach agreement The administration has helped to dollars in a house in Texas or Florida, on other issues. make the economy a lot better. We can and under this you are safe. It does not take a rocket scientist to take a moment. Let us wait until next Again, the Administration made it understand that the President would year and pass a good bill. Let us take crystal clear in four letters to congres- veto a bankruptcy conference report care of those problems that are in sional leaders that the President would that did not adequately address the there, but let’s not allow the haters, not sign any bankruptcy reform bill discharge of penalties for violence the crime inciters, the murderers, and that did not end the abuse of unlimited against family planning clinics and the the firebombers to go free. For Pete’s homestead exemptions. In fact, the Re- problem of wealthy debtors who use sake, let’s not let somebody who has publican leadership reached an agree- overly broad homestead exemptions to amassed millions of dollars of assets, ment with Democrats and the Adminis- shield assets from their creditors. Four and even more millions of debt, to say: tration to include a nationwide $500,000 times the Administration wrote to con- I will go buy a house in Texas or Flor- cap on homestead exemptions in bank- gressional leaders about the need to ad- ida because then I can escape my credi- ruptcy, but then the majority changed dress these two areas of bankruptcy tors. its mind. Why? I do not understand abuse. Four times. Mr. President, how much time does why the majority then reverted to a But this conference report fails ade- the Senator from Vermont have re- flawed homestead provision in this con- quately to address either of these two maining? ference report. abuses of the current bankruptcy sys- The PRESIDING OFFICER. Four and As early as May 12, 2000, OMB Direc- tem. one-half minutes. tor Jack Lew made clear the Adminis- Unfortunately, the majority is re- Mr. President, I yield the floor and tration’s position. Director Lew wrote peating the same mistakes that killed reserve the remainder of my time. to Congressional leaders: It is fun- bankruptcy reform in the last Con- Mr. GRASSLEY addressed the Chair. damentally unfair to ask low- and mod- gress. Instead of keeping on the track The PRESIDING OFFICER. The Sen- erate-income debtors to devote future of bipartisan compromise that was ator from Iowa. income to repay the debts that they headed toward enacting a fair and bal- Mr. GRASSLEY. We are waiting for can, while leaving loopholes that allow anced bill, the majority veered off the Senator from Alabama to come and the wealthy to shield income and as- course on behalf of special interests. speak. Before he gets here, I will take sets from their creditors. High or un- The result is an unfair and unbalanced a moment, so I yield myself such time limited homestead exemptions allow bankruptcy conference report. as I might consume. people with expensive homes to avoid Fortunately, bankruptcy filings have The PRESIDING OFFICER. Without their responsibility to repay a signifi- been declining for the last couple of objection, it is so ordered. cant portion of their debts. years. In 1999, the per capita personal Mr. GRASSLEY. I am glad the Sen- On June 9, 2000, the President, him- bankruptcy rate dropped by more than ator from Vermont pointed out the self, wrote to congressional leaders 9 percent. In the 2000 fiscal year, the many compromises that were made to about the need to end abusive home- decline continued. According to the accommodate the President and to ac- stead exemptions in any final bank- Administrative Office of the U.S. commodate Democrats in the Senate. ruptcy reform bill. President Clinton Courts, bankruptcy filings for fiscal He did not say this, but there were also wrote: I am concerned, for example, year 2000 are down 6.8 percent for per- a lot of changes made to accommodate that the final bill may not adequately sonal filings, down 6.6 percent for busi- Republicans. But he pointed out that address the problem of wealthy debtors ness filings and down 9.2 percent for we have two issues on which we dis- who use overly broad homestead ex- chapter 7 filings. Over the last two agree. That is what the Senator from emptions to shield assets from their years, Chapter 7 filings have dropped 15 Vermont said. I do not think that Sen- creditors. percent and personal bankruptcy fil- ators should vote against this bill over Again, a few weeks later on June ings overall have declined by 12 per- two issues which are not central to the 29th, the President reiterated his posi- cent. concept of bankruptcy reform. tion by writing to congressional lead- In my home state of Vermont, the re- I was disappointed, however, in his ers: The proposed limitation on State cent decline in personal bankruptcy fil- comments on the process. He referred homestead exemptions will address, for ings is even more dramatic. In 1999 con- to a very unusual process. I confess the first time, those who move their sumer bankruptcy filings in the Dis- that it was a very unusual process by

VerDate 06-DEC-2000 03:21 Dec 08, 2000 Jkt 089060 PO 00000 Frm 00032 Fmt 4624 Sfmt 0634 E:\CR\FM\G07DE6.078 pfrm02 PsN: S07PT1 December 7, 2000 CONGRESSIONAL RECORD — SENATE S11695 which this bill was conferenced and got sidering the dischargeability of liability in- dedication to accomplishing the impor- to the Senate floor. But I think I heard curred in connection with violence at repro- tant reforms in this bill, and to the him say something about Democrats ductive health clinics by abortion protesters. many other Members of the Senate for not being consulted. There was a 3–3 Our search did not reveal any reported deci- their hard work and cooperation. sions where such liability was discharged I was deeply troubled by a comment ratio on this conference. Normally under the U.S. Bankruptcy Code. there would not be a 3–3 ratio; there The only reported decision identified by made on the floor yesterday by a col- would probably be one more Repub- the search is Buffalo Gyn Womenservices, league from the other side of the aisle lican than Democrat. But because of Inc. v. Behn (In re Behn), 242 B.R. 229 (Bankr. to the effect that this bill was written Senator Coverdell’s death, it ended up W.D.N.Y. 1999). In this case, the bankruptcy by Republicans and is being forced on this conference there were three Re- court held that a debtor’s previously in- upon Senate Democrats. Nothing could publicans and three Democrats. So the curred civil sanctions for violation of a tem- be further from the truth. I am com- porary restraining order (TRO) creating a point is, we would not be here today if pelled to set the record straight on buffer zone outside the premises of an abor- that point. The entire development of it were not for help from Democrats, tion service provider was nondischargeable even in conference. under 11 U.S.C. § 523(a)(6), which excepts this bill has taken place in a bipartisan I only say that because the Senator claims for ‘‘willful and malicious’’ injury. manner. In fact, throughout the entire from Vermont is a friend of mine. He is The court surveyed the extant and somewhat process of consideration of this bill, be- very strongly opposed to this legisla- discrepant standards for finding ‘‘willful and ginning as long ago as the drafting tion. But I thought I ought to point out malicious’’ conduct articulated by three fed- stage, numerous changes suggested by the fact that there are those small, in- eral circuit courts of appeals. It granted the the minority have been made. significant modifications of his com- plaintiff’s motion for summary judgment It is no secret that in the informal and denied the debtor/defendant’s motion to ments that I thought I ought to make. conference process, we worked together retry the matter before the bankruptcy with Senate Democrats. And with rare Whether he would consider those clari- court. Specifically, the court held: fications or not, that is his judgment. ‘‘[W]hen a court of the United States issues exception, the provisions that are con- But I want them on the record for my an injunction or other protective order tell- tained in the final conference product point of view. ing a specific individual what actions will were agreed to and were done with the I also address an issue raised by Sen- cross the line into injury to others, then full bipartisan cooperation and support ator LEAHY. Some have stated that the damages resulting from an intentional viola- of the Senate negotiators. Further- bankruptcy conference report should tion of that order (as is proven either in the more, in an effort to reach a bipartisan bankruptcy court or (so long as there was a agreement and address concerns of the be opposed on the grounds that it does full and fair opportunity to litigate the ques- not contain a provision that would pre- White House, we took issues that were tion of volition and violation) in the issuing important to many of us on the Repub- vent abortion protesters from using court) are ipso facto the result of a ‘willful bankruptcy as a way to get out of pay- and malicious injury.’ ’’—242 B.R. at 238. lican side off the table. For example, I agreed to remove ing debt arising as a result of violence The PRESIDING OFFICER (Mr. L. or intimidation at abortion clinics. from consideration a provision I had CHAFEE). The Senator from Utah. sought which would have prevented On this issue, I draw my Senator’s at- Mr. HATCH. Mr. President, this con- criminal check kiters and counter- tention—in other words, the attention sumer bankruptcy reform legislation is feiters from collecting attorney’s fees of the Senator from Vermont—to a one of the most important legislative in lawsuits that they bring against memo prepared by the nonpartisan efforts to reform the bankruptcy laws Congressional Research Service. debt collectors—I might add, multiple in decades. I thank my distinguished lawsuits that really don’t make sense. This memo—which I will provide to friend and colleague from Iowa for his any Senator who wants to see it, and I Many others in the majority also made hard work on this, of course, the dis- concessions and a good faith effort to will include it in the RECORD—con- tinguished Senator from New Jersey, cludes that not one single abortion pro- resolve differences and move forward and so many others, Senator BIDEN with the long overdue comprehensive tester has ever used bankruptcy in this from Delaware. There are many others way. I repeat, according to the Con- bankruptcy reform. as well. Here on the Senate floor, the asser- gressional Research Service, a truly This is important. Before talking tion was made that not a single organi- nonpartisan resource, no one has ever about the substance of the legislation, zation that advocates for kids sup- used bankruptcy to skip out on debts I personally thank the majority leader ported this bill. I simply cannot allow arising from violence or intimidation who has worked hard and tirelessly to that kind of misrepresentation to at an abortion clinic. keep this legislation on track despite This issue, of course, is a red herring. stand uncorrected. In fact, there is tre- the many obstacles that it has faced— mendous support for this legislation It has been put forth by people who flat I have to say phony obstacles at that. out oppose needed bankruptcy reform from child advocates. Thanks to the majority leaders’s Let me give some illustrations. A let- as a way of defeating this legislation. commitment to moving this legisla- ter from Laura Kadwell, President of There is absolutely no merit to their tion, we now find ourselves in a posi- the National Child Support Enforce- argument. tion to weed out many of the abuses in ment Association, representing over I hope people will see it for what it the bankruptcy system and also to en- is—an empty political ploy. I hope Sen- 60,000 child support professionals across hance consumer protection. America: ators will see through this political I also acknowledge and thank the ploy and support the bankruptcy con- I’m writing to urge you to support the ranking member of the Senate Judici- Bankruptcy Reform Act of 2000. NCSEA is ference report. ary Committee, Senator LEAHY, who committed to ensuring that both parents ful- I ask unanimous consent to print in has worked with me and Senator fill their responsibilities to provide emo- the RECORD the memo from the Con- GRASSLEY and others to reach agree- tional and financial support to their chil- gressional Research Office. ment on many of the bill’s provisions. dren—including honoring legally-owed child There being no objection, the memo Most of all, I commend the original support obligations. The pending legislation was ordered to be printed in the authors of the legislation, Senators will forward this goal significantly. RECORD, as follows: GRASSLEY and TORRICELLI, chairman In a letter from Howard Baldwin, CONGRESSIONAL RESEARCH SERVICE, and ranking minority member of the President of the Western Interstate , Subcommittee on Administrative Over- Child Support Enforcement Council, an Washington, DC, October 26, 2000. sight and the Courts, respectively, for organization comprised of child sup- MEMORANDUM their hard work in crafting this much port professionals from the private and To: Hon. Charles Grassley. needed legislation and for their unre- public sectors west of the Mississippi From: Robin Jeweler, Legislative Attorney, lenting commitment to making the de- River: American Law Division. velopment and passage of this bill a bi- I would like to express our membership’s Subject: Westlaw/LEXIS survey of bank- unqualified support. ruptcy cases under 11 U.S.C. § 523. partisan process. This confirms our phone conversation of As I have mentioned, my praise also The resolution of the California Fam- October 25, 2000. You requested a comprehen- goes to Senator SESSIONS and Senator ily Support Council, consisting of ap- sive online survey of reported decisions con- BIDEN, who have shown unwavering proximately 2,500 persons employed by

VerDate 06-DEC-2000 03:59 Dec 08, 2000 Jkt 089060 PO 00000 Frm 00033 Fmt 4624 Sfmt 0634 E:\CR\FM\G07DE6.081 pfrm02 PsN: S07PT1 S11696 CONGRESSIONAL RECORD — SENATE December 7, 2000 county and State agencies which ad- rent law for women and children. This agreements to protect people from minister the Federal child support pro- chart shows that. It makes the pay- being pressured into onerous agree- gram in California: ment of child support arrears a condi- ments; Now therefore be it resolved that the Cali- tion of plan confirmation. It provides A debtors’ bill of rights to prevent fornia Family Support Council * * * directs better notice and more information for the bankruptcy mills from preying the president of the California Family Sup- easier child support collection. It pro- upon those who are uninformed of their port Council to convey to the California con- vides help in tracking down deadbeats. rights; gressional delegation and to the President It allows for claims against a deadbeat New consumer protections under the its enthusiastic endorsement of the Bank- Truth in Lending Act, such as required ruptcy Reform Bills. parent’s properties. It allows for the payment of child support with interest disclosure regarding minimum month- How about a letter from Betty D. by those with means. And it facilitates ly payments and introductory rates for Montgomery, attorney general of the wage withholding to collect child sup- credit carts; State of Ohio: port from deadbeat parents. It does all Penalties on creditors who refuse to As the chief law enforcement officer for of that. negotiate reasonable payment sched- [Ohio], I stand committed to protecting our I am also happy to say that the con- ules outside of bankruptcy; most vulnerable citizens [and this legisla- ference report prevents deadbeats from Penalties on creditors who fail to tion] will further promote the objectives of properly credit plan payments in bank- our state and national child support enforce- using the automatic stay in bank- ment program and further ensure that those ruptcy to avoid paying their support ruptcy; families in need are protected. obligations. The bankruptcy reform Credit counseling programs to help stops deadbeat parents from abusing avoid the cycle of indebtedness; A vote for this conference report will Protection of educational savings ac- mean a vote to stop letting deadbeat the automatic stay. The conference report prevents dead- counts; and parents use bankruptcy to avoid pay- Equal protection for retirement sav- ing child support. It will mean a vote beats from using bankruptcy’s auto- matic stay to avoiding child support ings in bankruptcy. to stop paying lawyers ahead of chil- You can’t look at this bill and what dren who rely on child support. I have with this legislation. The automatic stay cannot be used it means to people in this country worked with Senator TORRICELLI, the without realizing that this is a step National Association of Attorney Gen- to put a hold on the interception of a deadbeat parent’s tax refund to pay forward. erals, and the National Women’s Law A vote for this legislation is also a support. Center to improve current bankruptcy The automatic stay cannot be used vote for families by preventing wealthy law with respect to child support and to prevent the reporting of overdue people from continuing to abuse the alimony. Currently bankruptcy law is support owed by deadbeat parents to system at the expense of everyone else. Under the current system, people simply not adequate. Frankly, I was any consumer reporting agency. outraged to learn of the many ways The automatic stay cannot be used with high incomes can run up massive deadbeat parents were manipulating to prevent the withholding, suspension, debts and then use bankruptcy to get and abusing the current bankruptcy or restriction of driver’s licenses, pro- out of honoring them. All of us end up system in order to get out of paying fessional and occupational licenses, paying for the unscrupulous who abuse their domestic support obligations. I and recreational licenses when dead- the system. In fact, it has been esti- am proud of the improvements we are beats default on domestic support obli- mated that every American family making in this legislation over current gations. pays $550 a year in a hidden taxes as a law in terms of ensuring that parents And suspending the driver’s license of result of these abusers. This legislation meet their child support and other do- the deadbeat parent can be a very ef- helps eliminate this hidden tax by im- mestic support obligations in bank- fective way of getting them to pay the plementing a means test to make ruptcy. child support they owe. wealthy people who can repay their I have worked tirelessly, as others This is important stuff. It has taken debts honor them. have—those I have mentioned—provi- lot of time to get this done. We will Let me make one thing absolutely sion by provision, both last year and pass this bill. But if the administration clear. The poor are not affected by the this year, to make this conference re- doesn’t accept this bill and it winds up means test. In fact, the legislation pro- port one that dramatically improves vetoing it, it will be a tragedy. vides a safe harbor for those who fall the position of children and ex-spouses These are just a few of the many im- below the median income. So they are who are entitled to domestic support. provements the conference report not subjected to the means test at all. No one who actually looks at what the makes in this area as compared with Again, only those above the median in- conference report says can in good con- current law. come are affected, and the means test science say that this bill is not a tre- I have had a long history of advo- could not deny anyone bankruptcy re- mendous improvement for children and cating for children and families in Con- lief. It just requires those who have the families over current law. gress and throughout my legal career. I means to repay their debts, based on This bill for women and children support a conference report that puts their income, to do so. It is that sim- gives child support first priority sta- child support first in line ahead of the ple. tus, up from seventh in line, meaning lawyer’s fees and that doesn’t let debt- A vote for the conference report also they will be paid ahead of the lawyers, ors who owe child support turn their is a vote to stop allowing a few wealthy if you can imagine that. It is about backs on children when they file for individuals to abuse the homestead ex- time. It makes staying current on child bankruptcy. emption. The conference report tackles support a condition of discharge. It In another provision I authored, the the problem of the homestead exemp- makes debt discharge in bankruptcy conference report protects for the first tion. Although rare, that problem is of- conditional upon full payment of past time in bankruptcy education savings fensive to those of us who work hard to due child support and alimony. It accounts set up by parents and grand- make good on our debts. makes domestic support obligations parents for their children and grand- The conference report reaches a com- automatically nondischargeable with- children. promise which targets the major abuse out the cost of litigation. It prevents All things considered, it is pretty of bankruptcy by those who move to bankruptcy from holding up child cus- simple. A vote for this conference re- States with generous homestead ex- tody, visitation and domestic violence port is a vote for our Nation’s kids. emptions purely in order to file bank- cases. And it helps avoid administra- Just look at the bankruptcy con- ruptcy and keep an expensive home. tive roadblocks to get kids the support sumer provisions. A vote for this con- Although this reform provision does they need. ference report is a vote for consumers. not go as far as some of us would like, It is a very important set of changes, The legislation includes a whole host of without it we are back to business as without which we are going to be abus- new consumer protections that do not usual with no improvement to current ing children in the law. exist under current law, such as: law at all. That is not all. The conference report New disclosure by creditors and more A vote for this conference report is makes more improvements over cur- judicial oversight of reaffirmation of also a vote for families who work to

VerDate 06-DEC-2000 03:21 Dec 08, 2000 Jkt 089060 PO 00000 Frm 00034 Fmt 4624 Sfmt 0634 E:\CR\FM\G07DE6.084 pfrm02 PsN: S07PT1 December 7, 2000 CONGRESSIONAL RECORD — SENATE S11697 save for retirement. I mentioned ear- one of the best legal practitioners in The letter from the professors fur- lier that the conference report contains this whole body. I am very proud of the ther says: my provision to provide equal treat- work the Senator and so many others Credit card claims increasingly will be ex- ment for retirement savings plans in have done on this bill, without which it cepted from discharge and remain a legal ob- bankruptcy. For example, the retire- would have been much tougher for me ligation after bankruptcy. ment savings of teachers and church as chairman of the committee. This The fact is, the bill makes only cred- workers are clearly given the protec- bill has made a true difference in the it card debt incurred by fraud non- tion in bankruptcy as much as every- lives of the children of this country. dischargeable, just like taxes and child one else. They deserve nothing less. If we don’t have this bill put on the support are nondischargeable. Debtors A vote for the conference report is a law books of this country, families, who defraud creditors should not be vote for our country farmers and the children, farmers, consumers, and oth- able to discharge their debts in bank- men and women who work hard every ers are going to be drastically hurt. ruptcy and not pay them. They only day in the face of many challenges. Yes, no bill is absolutely perfect, but ought to be able to discharge the debts Without this reform package, family we have too many people at cross-pur- they lawfully incurred. That is the cur- farmers lose out on the special bank- poses. But we have worked every day rent law. That is the law today. You ruptcy protections they need in chap- this bill has been in existence with our cannot discharge fraudulent debts. In ter 12. colleagues on the other side. That is addition, of course, credit card debt is I urge my colleagues to think for a why we have a number of them who are at the end of the line if you have to pay moment about the children, the con- willing to support this bill, not only anything. It is a non-secured debt. It is sumers, families, and farmers who will willing but enthusiastically do so. the last priority to be paid in the list end up getting hurt if comprehensive We couldn’t have come this far with- of priorities. bankruptcy reform is not enacted this out the work of the distinguished Sen- This letter goes on to say: year. I urge my colleagues to support ator from Alabama. I have great re- Large retailers will have an easier time ob- spect for the Senator and I am grateful taining reaffirmations of debt that legally and cast a vote for them and to support could be discharged. this bankruptcy reform. he is on the floor today. I am grateful That is absolutely false. I was I also urge the President of the the Senator is one of the people who is charged by Senator GRASSLEY to meet United States to sign this bankruptcy helping to make the case for this bill. with Senator REID and the representa- reform into law. There are good people on both sides of Mr. SESSIONS. Mr. President, I the aisle, good people who understand tives from the White House to develop reaffirmation language that would thank Senator HATCH for his leadership these important matters, good people strengthen protections for people who on this bankruptcy bill and for shep- who know that children are a focal were asked to reaffirm debts. herding it through the Judiciary Com- point of much of this bill. I thank the Senator for his question. Frankly, reaffirmations are not all mittee. that bad. Many times, people have I remember distinctly when we first The PRESIDING OFFICER. Who every reason to want to reaffirm their began to discuss the problems of chil- yields time to the Senator from Ala- debts and keep their washing machine, dren, alimony and child support, the bama? Mr. HATCH. I yield such time as he their TV, their furniture, their auto- leadership and the firm position Sen- shall need. mobile they use to get to and from ator HATCH took to guarantee that The PRESIDING OFFICER. The Sen- work. They want to keep it. They reaf- children and alimony payments would ator from Alabama. firm their debt and they do not lose it. have an enhanced position in bank- Mr. SESSIONS. Mr. President, we So we worked out language to which ruptcy, much higher than it had ever have had quoted on the floor a letter the White House agreed. It strengthens been before. That was the goal of Sen- from a group of professors that ex- the protections provided to those debt- ator HATCH, who has worked on this pressed opposition to this bankruptcy ors. It was language agreed-upon in a bill and previous bankruptcy bills and bill. I think we owe it to those who bipartisan way. studied this. quoted from it to treat the letter seri- The letter further says: I am looking at a letter from some ously and analyze item by item the Giving first priority to domestic support professors who don’t seem to get it. complaints they have made and discuss obligations— But the Senator has studied and spon- it on the floor. I must say that after Which is in the bill, giving them first sored the amendment that made some examining the letter carefully, I must priority of payment— of the historic changes. take issue with the professors’ conclu- does not address the problem, and that 95 Is there any doubt in your mind, Sen- sions. I intend to try to go over the percent of bankruptcy cases make no dis- ator, that the children will benefit points that they raise fairly and hon- tributions to any creditors because there are from those child support payments, estly, and to state the situation as I no assets to distribute. and women will have more protections see it. In fact, I think it is quite plain. First, the money is going to the for alimony payments under this bill The professors are wrong and they are bankruptcy court and to lawyers. In that we are about to pass than if the making misleading statements about our rule, children would be above the bill does not pass? it. courts and the lawyers. ‘‘Granting Mr. HATCH. I thank the Senator for For example, the letter from the pro- women and children a first priority his very intelligent question. There is fessors says: permits them to stand first in line to no question that this bill will make Women and children will have to compete collect nothing,’’ the professors say. dramatic changes in bankruptcy laws with powerful creditors to collect their But the fact is, the means test will to the benefit of children, parents, fam- claims after bankruptcy. place above-median-income-deadbeat- ilies, farmers—just name them—in The fact is, the bill makes currently dads into Chapter 13 if they can repay large measure because of the work of exempt assets—that is, homestead, some of their debt—median income for the distinguished Senators, Mr. GRASS- household effects, tools of the trade— a family of four, by the way, is about LEY, Mr. TORRICELLI, and others, in- those kinds of things that normally $45,000. So, to reiterate, deadbeat dads cluding our ranking member Senator today cannot be made to be sold to pay who are above median income, will be LEAHY, and especially the distin- alimony or child support—non-exempt. forced into chapter 13 (instead of being guished Senator from Alabama. Thus, wives and mothers will not have able to file Chapter 7) if they can afford The distinguished Senator from Ala- to compete with anyone before, during, to pay back some of the debts they bama has been here just long enough to or after bankruptcy for these key as- owe—maybe it is 20 percent, maybe it show how effective he is and what a sets. In fact, a mother, for child sup- is 30 percent—but they will be put into perfect job he has done on the Judici- port, can take the home—the home- chapter 13 to pay that. And for 5 years ary Committee. I personally com- stead notwithstanding—of a deadbeat the judge can order them to pay on pliment the Senator. He has played a dad and take other assets that he has those debts what percentage he or she significant and noble role in this bill, that otherwise under current law believes the debtor is financially able as have others, but, in particular, I would be exempt. It is a major step for- to pay and maintain a decent standard consider him one of the best lawyers, ward for the rights of children. of living.

VerDate 06-DEC-2000 03:21 Dec 08, 2000 Jkt 089060 PO 00000 Frm 00035 Fmt 4624 Sfmt 0634 E:\CR\FM\G07DE6.086 pfrm02 PsN: S07PT1 S11698 CONGRESSIONAL RECORD — SENATE December 7, 2000 But what is first? What is first paid There has been a report since early trying to complete this bill. I believe by that deadbeat dad? His alimony and today about the White House, or per- we have a good piece of legislation, and child support. He would be under court- sonnel at the White House, calling I hope the vote will be overwhelming monitored supervision and direction to Democrats who have always supported again today. pay the first fruits of his income di- this bill to vote against it. I am not Mr. HATCH. As chairman of the Sen- rectly in the form of child support and sure I know exactly why the White ate Judiciary Committee, I have a alimony. In effect, you have a bank- House is calling and saying that, but I question for the chairman of the Sub- ruptcy judge helping ensure, for 5 presume it is because they would like committee and principal author of H.R. years, the full payment of child sup- to have fewer folks than the two-thirds 2415. Because we were forced to proceed port and alimony. I believe that is we had on the cloture to override a in an unconventional procedural man- going to be a historic step forward. In veto, if the President would veto this ner with respect to this legislation, can fact, this will place children and bill. I don’t know that the President you provide any guidance for courts women in a higher level than they have would veto it. I know there are a lot of and practitioners on this legislation? ever been before. people at the White House who would Mr. GRASSLEY. Certainly. The fol- The letter further says: like to have him veto it. lowing is what H.R. 2415 does: Under current law, child support and ali- I say to those Democrats who have H.R. 2415 mony share a protected post-bankruptcy po- voted and supported this legislation so BACKGROUND AND NEED FOR THE LEGISLATION sition with only two other recurrent collec- much over the last 3 years, particu- The bankruptcy system is currently in a tors of debt—taxes and student loans. The state of crisis. In recent years, America has bill would allow credit card debt and other larly on that 83–14 vote by which it passed, I hope they will not respond to witnessed a dramatic explosion in the num- consumer credit to share that position, thus ber of bankruptcy filings. According to sta- elbowing aside women trying to collect on that kind of pressure from the White tistics from the Administrative Office of the their own behalf. House. I hope they know CHUCK GRASS- United States Courts, bankruptcies have ex- That is not true. I can understand LEY well enough to know that if I had ploded from 331,000 in 1980 to just under 1.4 why some of our Senators are con- voted for a bill in the Reagan adminis- million in 1999. It is a matter of serious con- cerned about the bill after they read tration or the Bush administration, cern to Congress that the explosion in bank- this letter. It has a bunch of professors’ three or four times, and a President ruptcy comes at a time of unprecedented Reagan or his staff, or a President prosperity, with low unemployment and high names on it. They think it is true—but wages. Unemployment is at an all-time low. it is not true. The fact is, the bill al- Bush or his staff, called me up and Consumer confidence has been high and the lows only consumer debt that was in- asked me to change my mind just to Dow Jones Industrial Average at one point curred by fraud to be nondischargeable, protect the President, if I would do it— rose above the 10,000 mark. Thus, the high which is fundamentally the law today. I would not do it. I hope they would not rate of bankruptcy filings cannot reasonably Even so, only alimony and child sup- do it. be attributed to a slow economy. port claimants will be able to levee on I return the floor to the Senator from This state of crisis has a significant nega- any of these assets. No one else can Alabama. tive impact on the American economy. Ac- cording to the Department of Justice, credi- levee or get ahead of a parent or a child Mr. SESSIONS. I thank the chair- tors lose 3.22 billion dollars annually as a re- to claim these exempt assets. Thus, man. sult of Chapter 7 bankruptcies filed by indi- mothers will not have to compete with Mr. President, what is the time situ- viduals who could repay their debts. Obvi- the IRS, the student loan companies, ation? Are we still set for a vote? ously, the existence of multi-billion dollar credit card companies, or anyone else, The PRESIDING OFFICER. We are losses attributable to high levels of bank- to attach exempt assets after bank- set for a vote at 3:45. The Senator has ruptcy filings is a clarion call for Congress 1 to reform our bankruptcies laws to require ruptcy. 1 ⁄2 minutes remaining. Further, I believe the bill will pro- Mr. SESSIONS. Mr. President, I have bankrupts who could repay some portion of their debts to do so. vide more assets for distribution to at least six or seven more items that I Given the strong performance of the econ- women and children than before, dur- could refer to from the professors’ let- omy, many feel that the recent explosion in ing, and after bankruptcy. Before ter that I believe are based on com- personal bankruptcy filings is at least partly bankruptcy, debtors will receive credit plaints about an early version of the attributable to the decreased moral stigma counseling information which will help bill, matters that are not even in the associated with declaring bankruptcy. See keep fathers on a budget, teach them bill today, and other items that are Testimony of Professor Todd Zywicki, Joint completely distorted in how it affects Hearing of the Subcommittee on Adminis- how to maintain a budget, and out of trative Oversight and the Courts and the bankruptcy and paying their alimony the poor people in America today. Subcommittee on Commercial and Adminis- and child support in the first place. Let me simply say this: We need trative Law, March 11, 1999; Testimony of During bankruptcy, deadbeat dads will bankruptcy reform. We have shown a Tahira Hira, Subcommittee on Administra- be required to pay all past due alimony doubling of bankruptcy filings in the tive Oversight and the Courts Hearing, ‘‘S. and child support and to undergo court last decade. 1301, The Consumer Bankruptcy Reform Act: supervision for up to 5 years under It is time for us to move this bill for- Seeking Fair and Practical Solutions to the chapter 13, as they pay their No. 1 pri- ward to create a body of law that is Consumer Bankruptcy Crisis’’ (March 11, 1998); Testimony of Kenneth R. Crone, Sub- ority, child support claims. less subject to abuse than current law, to close many of the loopholes or at committee on Administrative Oversight and After bankruptcy it is much more the Courts Hearing, ‘‘The Increase in Per- likely that a father who has undergone least partially close them. sonal Bankruptcy and the Crisis in Con- credit counseling, who has been sub- The fact we have not been able to do sumer Credit,’’ (April 11, 1997); Lee Flint, jected to 5 years of court supervision of everything is not a basis to object, in ‘‘Bankruptcy Policy: Toward a Moral Jus- his finances, and where alimony and my view. The perfect is the enemy of tification for Financial Rehabilitation of child support were the he the good. This is a good bill. I would Consumer Debt,’’ 48 Wash. & Lee L. Rev. 515 was required to pay and where he like to see all the homestead exemp- (1991); David Gross and Nicholas Souleses, knows that he cannot shield his ex- tions removed, at least as we agreed ‘‘Explaining the Increase in Bankruptcy and Delinquency: Stigma Versus Risk-Competi- earlier. Senator GRASSLEY supported empt assets from alimony and child tion’’ (Preliminary, 1998); F.H. Buckley and support, will be up to date on all his that. The House would not agree. We Margaret F. Brinig, ‘‘The Bankruptcy Puz- payments if he has gone through that got half the problems of homestead zle,’’ 27 J. Legal Stud. (1998). process—much more so than today. eliminated in this bill. In the view of many in Congress, a de- I see Chairman GRASSLEY is here. I If we do not pass the bill, we will creased moral stigma associated with bank- had a number of matters, but I know he have the current law which has a host ruptcy means that filing for bankruptcy is would like to wrap up at this time. of problems and none of them fixed. no longer viewed as a last resort reserved for Mr. GRASSLEY. No, I do not want to That is where we are. We have a good financially troubled Americans who have no other option but to seek debt forgiveness. As wrap up. I would like to have permis- piece of legislation. Chairman GRASS- Americans become accustomed to high levels sion to interrupt the Senator, and for LEY has done a magnificent job of lis- of consumer bankruptcy, it is only natural him not to lose the right to the floor. tening to everybody and working out that declaring bankruptcy has lost much of I would like to say something for 30 an agreement that is acceptable. Chair- the shame previously associated with it. In- seconds on the bill, if I could. man HATCH has likewise been tough in dividuals who would have struggled to meet

VerDate 06-DEC-2000 03:21 Dec 08, 2000 Jkt 089060 PO 00000 Frm 00036 Fmt 4624 Sfmt 0634 E:\CR\FM\G07DE6.089 pfrm02 PsN: S07PT1 December 7, 2000 CONGRESSIONAL RECORD — SENATE S11699 their financial obligations in the past are fil- mitted the reduction in an attempt to avoid Earner’s Plan, which allowed an individual ing bankruptcy today in record numbers. See payment of creditors or other inappropriate to retain nonexempt assets by proposing a Judge Edith H. Jones and Todd J. Zywicki, intent is not necessary, and a significant plan to pay his or her existing debts from fu- ‘‘It’s Time for Means Testing,’’ 1999 B.Y.U. L. burden is on the debtor to justify the adjust- ture income, after which the wage earner Rev. 177. For example, recent studies suggest ment. would receive a discharge of any unpaid bal- that almost half of filers learned about their On the other hand, if the debtor was a well ances of his debts. See generally, Dvoret, option to file for bankruptcy from friends or paid medical doctor who prior to bankruptcy ‘‘Federal Legislation, Bankruptcy Under the family. See, e.g., Vern McKinley, ‘‘Bal- changed from a demanding private practice Chandler Act: Background,’’ 27 Geo. L.J. 194 looning Bankruptcies: Issuing Blame for the requiring 80 hours a week to a significantly (1938). Explosive Growth,’’ Regulation, Fall 1997, at less well-paid research staff position with The debate over Chapter XIII occurred 38. At the same time, there have been strong regular nine to five hours in order to have years earlier in joint hearings before the expressions of concern from the Federal more time to assist in the care of a seriously House and Senate Judiciary Committees in Trade Commission that attorney advertising disabled child, there would clearly be ‘‘spe- 1932, during the Seventy-Second Congress. is leading consumers to file bankruptcy cial circumstances’’ which justified the ad- By the time it was enacted in 1938, Chapter without being fully informed. justment, the income reduction would be XIII codified informal practices which had It is the strong view of the Congress that reasonable and necessary, and the special re- developed without explicit statutory author- the Bankruptcy Code’s generous, no-ques- lationship of parent and child would clearly ization. In the mid 1930’s in Birmingham, tions-asked policy of providing complete lead to the conclusion that there was no rea- Alabama a former special referee in bank- debt forgiveness under Chapter 7 without se- sonable alternative to the adjustment. ruptcy, Valentine Nesbitt, first developed a rious consideration of a bankrupt’s ability to GENERAL OVERVIEW OF THE CURRENT ‘‘repayment option’’ which was the model for Chapter XIII. See Weinstein, The Bank- repay is deeply flawed and encourages a lack CONSUMER BANKRUPTCY SYSTEM of personal responsibility. ruptcy Law of 1938 (1938). Both H.R. 833 and its Senate counterpart S. Under current law, individuals considering In 1932, Congress conducted hearings on S. 625 proposed amendments to section 707(b) of bankruptcy often proceed under Chapter 7, 3866. Section 75 of this bill would have estab- the Bankruptcy Code to require bankruptcy where the bankrupt will surrender all assets lished a repayment plan for wage earners. judges to dismiss a Chapter 7 case, or con- which do not qualify for an exemption to a Section 75 provided a method for an indebted vert a Chapter 7 case to another chapter if a bankruptcy trustee. The bankruptcy trustee wage earner to come into court without bankrupt has a demonstrable capacity to then sells the bankrupt’s property and dis- being labeled ‘‘a bankrupt,’’ and get the ben- repay his or her debts. HR 2415 maintains the tributes the proceeds to the creditors. Any efit of a court injunction to fend off creditors section 707(b) structure. In general, the deficiency which remains after the sale of while the wage earner arranged to repay his agreement embodied in HR 2415 used S. 625 as these assets is simply erased (or ‘‘dis- pre-bankruptcy debts in installments. Sec- the base for the means test. Like S. 625, a charged’’), and the bankrupt cannot be re- tion 75, with certain modifications, eventu- presumption arises that a Chapter 7 bank- quired to repay debts which have been erased ally became Chapter XIII, enacted in 1938 as rupt should be dismissed from bankruptcy or during bankruptcy. Chapter 7, often referred part of the Chandler Act. converted to another chapter if, after taking to as ‘‘straight bankruptcy,’’ is the oldest Since the 1938 amendments, there have into account secured debts and priority debts and most commonly used type of bankruptcy been several proposals to limit bankruptcy as well as living expenses, the bankrupt can proceeding. relief to those who lack genuine repayment repay over 5 years the lesser of 25 percent or Individuals may also declare bankruptcy capacity. In the 1960s, Congress considered more of his or her general nonpriority unse- under Chapter 13 of the Bankruptcy Code. several such proposals. See H.R. 12784, 88th cured debts (but at least $6,000), or $10,000. Chapter 13 provides for the development of a Cong., 2d Sess. (1964); H.R. 292, 89th Cong., 1st This test requires those with greater debts repayment plan that allows a debtor to Sess. (1965); S. 613, 89th Cong., 1st Sess. (1965); to pay proportionately more than those with repay some portion of his or her debts. At H.R. 1057 & H.R. 5771, 90th Cong., 1st Sess. smaller debts. For example, the cases of the end of the repayment period, the unpaid (1967). Under these proposals, an individual debtors whose unsecured, nonpriority debts portion of debt is erased, and a debtor cannot debtor seeking relief under the liquidation are over $100,000 will be dismissed under the be required to repay the unpaid portion of provisions of the bankruptcy laws would be means test (absent ‘‘special circumstances’’ the discharged debt. Unlike Chapter 7, the denied relief if the court concluded that he discussed later) if their projected ability to purpose of Chapter 13 is to rehabilitate fi- or she could pay substantial amounts of debt pay over 5 years is over $10,000, even though nancially-troubled consumers by using fu- out of future earnings under a Chapter XIII that is considerably less than 25% of their ture earnings to repay debts in exchange for plan. debt. Conversely, the cases of debtors whose a discharge of the unpaid portions of those Importantly, one of these proposals, S. 613, debts in that category are less than $36,000 debts. Two other chapters are also available was introduced by Senator Albert Gore, Sr., will only be dismissed under the means test to individual debtors, but are only rarely the father of the current Vice President. if their projected ability to repay over 5 used by consumers. Chapter 11, usually used When he introduced S. 613, Senator Gore in- years is over $6,000, permitting debtors in by those with significant assets, permits a dicated that Chapter 7 resembled a special this category to remain in chapter 7 even debtor to negotiate a plan of reorganization interest tax loophole, which the wealthy though they have the ability to repay a per- of the debtor’s financial affairs with credi- could use to avoid paying their fair share. centage of their unsecured, nonpriority debts tors, and in some instances force that plan Senator Gore, Sr. also commented on the considerably greater than 25%. The debtor or unwilling creditors. A discharge is avail- moral consequences of a lax bankruptcy sys- can rebut this presumption only by dem- able when the plan is confirmed. Chapter 12 tem: ‘‘I realize that we cannot legislate morals, onstrating ‘‘special circumstances’’ that is available for family farmers. but we, as responsible legislators, must bear would clearly demonstrate that the bank- EARLIER REFORM EFFORTS TO REDUCE the responsibility of writing laws which dis- rupt in fact does not have a meaningful abil- CONSUMER BANKRUPTCY ABUSE courage immorality and encourage morality; ity to repay his or her debts. It is not in- The idea of requiring bankrupts to repay which encourage honesty and discourage tended that the ‘‘special circumstances’’ cat- their debts when they have the ability to do deadbeating; which make the path of the so- egory will be interpreted broadly to allow so is not new. This topic has been the subject cial malingerer and shirker sufficiently un- bankrupts to avoid repayment of financial of many proposed amendments, from the pleasant to persuade him at least to inves- obligations for reasons unrelated to finances, early 1930s to the current Congress. S. 625 is tigate the way of the honest man.’’—Cong. income or expenses. Therefore, the presump- merely an extension of this longstanding ef- Rec. 905, January 19, 1965. tion of abuse may only be rebutted, first on fort to ensure that bankruptcy is reserved Given the current bankruptcy crisis, Sen- a demonstration that the increases in spend- for those truly in need of debt forgiveness. ator Gore’s words from over 30 years ago ing or decreases in income arise directly See Oversight Hearing on Personal Bank- seem prescient. from ‘‘special circumstances’’ and are justi- ruptcy, Committee on the Judiciary, Sub- Following the 1978 amendments, in the fied by those circumstances, second, that committee on Monopolies and Commercial early 1980s, Senator Dole introduced S. 2000 they are reasonable and necessary, and, Law, 97th Cong. 2nd Sess., (1982). during in the 97th Congress. In the House of third, that there is no reasonable alternative The general structure of the present fed- Representatives, Congressman Evans intro- to the expense or income adjustment. For ex- eral Bankruptcy Code is the result of the duced H.R. 4786, which eventually garnered ample, if a loss of income occurred because a Bankruptcy Reform Act of 1978, Pub. L. 95– 269 co-sponsors. Congress did not pass either debtor voluntarily elected to waive a bequest 598. The 1978 Act was the first major over- proposal in the 97th Congress, so these meas- or otherwise reduce income, there would be a haul and attempt to update comprehensively ure were reintroduced in the 98th Congress reasonable alternative to the reduction be- the bankruptcy law since passage of the as H.R. 1169 and S. 445. As a result of these cause the debtor could have not elected, even Chandler Act in 1938. 52 Stat. 840 (1938). Prior efforts, Congress created Section 707(b) of though there may have been good reasons to to the Chandler Act, individuals in serious fi- the Bankruptcy Code in 1984 to allow judges do so. Moreover, the kind of ‘‘special cir- nancial trouble usually had no choice but to to dismiss Chapter 7 cases if granting relief cumstances’’ Congress intended would not be file for ‘‘straight bankruptcy’’ under Chapter would constitute a ‘‘substantial abuse’’ of present to justify the adjustment, nor would VII, a proceeding similar to present Chapter the Bankruptcy Code. Pub. Law 105–165. The it be reasonable and necessary. Therefore, 7 under the Bankruptcy Code. However, the focus of the effort was to require bankrupts the additional adjustment to income would Chandler Act provided small debtors a new, who had the ability to pay a significant per- not be allowed. Proof that the debtor per- alternative procedure, the Chapter XIII Wage centage of their debts ‘‘without difficulty’’

VerDate 06-DEC-2000 03:21 Dec 08, 2000 Jkt 089060 PO 00000 Frm 00037 Fmt 4624 Sfmt 0634 E:\CR\FM\A07DE6.050 pfrm02 PsN: S07PT1 S11700 CONGRESSIONAL RECORD — SENATE December 7, 2000 to proceed under Chapter 13 instead of Chap- tion 102 provides that the debtor’s monthly come and the presumption of abuse applies. ter 7. However, the term ‘‘substantial abuse’’ expenses shall be applicable monthly ex- If the Office of United States Trustee or was not defined and creditors and trustees penses under standards issued by the Inter- bankruptcy administrator determines after were expressly forbidden from presenting nal Revenue Service (‘‘IRS’’) for the area in investigation that such a motion is not war- evidence to a judge that granting relief in a which the debtor resides. The IRS standards ranted because the presumption of abuse can particular case would result in a ‘‘substan- applicable under section 102 are the IRS ‘‘Na- be rebutted, then it must file an explanatory tial abuse.’’ tional Standards,’’ ‘‘Local Standards,’’ and statement with the bankruptcy court detail- Despite Congress’ intent that section 707(b) certain categories of ‘‘Other Necessary Ex- ing why a motion to dismiss or convert is would control inappropriate use of chapter 7 penses’’ which are specifically listed in the not appropriate. If private trustees or credi- by those with ability to pay, that section has Standards. These tors disagree, they can commence a motion not been effective. Although many factors standards are currently used to determine under 707(b). are at work, much of the reason for this inef- appropriate living expenses for taxpayers Importantly, creditors are now explicitly fectiveness has been the ingrained point of who are required to repay delinquent taxes. given the power to bring 707(b) motions be- view that ‘‘honest’’ debtors have a ‘‘right’’ to These standards have been developed by the fore the bankruptcy court, although credi- a chapter 7 discharge even when they have Treasury Department to assist the Depart- tors’ and private trustees’ motions are re- ability to pay. To illustrate, the Fourth Cir- ment in the collection of taxes and, of stricted to cases in which the debtor’s cur- cuit has taken a ‘‘totality of the cir- course, can be revised from time to time, as rent monthly income exceeds the applicable cumstances’’ approach to determining needed. These expense categories allow ex- state median income. Moreover, HR 2415 whether there is substantial abuse. In re penses for housing, food, transportation, and, gives Chapter 7 trustees important new fi- Green, 934 F.2d 568 (4th Cir. 1991)(a ‘‘totality for purposes of the means test, certain speci- nancial incentives for ferreting out bank- of circumstances’’ test is appropriate when fied ‘‘other necessary expenses.’’ rupts who have repayment capacity and pro- deciding section 707(b) cases in which ability In order to provide flexibility in appro- vides for appropriate penalties for bank- to repay can be outweighed by other factors, priate cases of hardship, Section 102 also pro- ruptcy attorneys who recklessly steer indi- like the debtor’s good faith or honesty). vides that in some cases where the presump- viduals with repayment capacity to Chapter Some bankruptcy judges have taken the to- tion applies the debtor may be able to dem- 7 bankruptcy, or file schedules which mis- tality of the circumstances approach sug- onstrate ‘‘special circumstances’’ that ‘‘jus- state income, expenses or assets. HR 2415 gested by In re Green as a justification for ei- tify’’ additional expenses or an adjustment also contains penalties for creditors who file ther ignoring ability to pay completely, or to the debtor’s income for which there is no inappropriate motions under section 707(b). doing so in effect. See In re Adams, 209 B.R. reasonable alternative. In addition, the debt- Thus, contrary to the assertions of some, 874 (Bankr. M.D. Tenn. 1997)(Paine, or must demonstrate that the adjustments there are real and meaningful reasons why J.)(honest debtor with ability to repay can- are reasonable and necessary and there is no creditors will not improperly use their right not be dismissed from chapter 7); In re reasonable alternative to the expense or in- to file 707(b) motions. Braley, 103 B.R. 758 (Bankr. E.D. Va. come adjustment. If the debtor can make The new section 707(b) also provides that in 1989)(Bonney, J.). Other Circuit Courts have this showing, the presumption is rebutted. It addition to the means test, Chapter 7 debt- disagreed and insisted that debtors with abil- is not intended that the ‘‘special cir- ors’ cases may be dismissed if the filing is ity to pay must do so. In re Kelley, 841 F.2d cumstances’’ test will allow the presumption not in good faith or the ‘‘totality of the cir- 908 (9th Cir. 1988); In re Walton, 866 F. 2d 981 of abuse to be rebutted by relying on factors cumstances’’ indicate that granting relief (8th Cir. 1989); United States Trustee v. Harris, other than ability to pay. under Chapter 7 would constitute abuse. No 960 F.2d 74 (8th Cir. 1992); In re Koch, 109 F. 3d The presumption of abuse arises due to a inference should be drawn, however that by 1285 (8th Cir. 1997); In re Lamanna, 153 F. 3d financial calculation assessing a Chapter 7 referencing the ‘‘totality of the cir- 1 (1st Cir. 1998). A few bankruptcy courts debtor’s ability to pay. Thus, the presump- cumstances’’ Congress intended to approve have followed the direction of these Circuit tion of abuse under Section 707(b) may only the result in In re Green, 934 F.2d 568 (4th Cir. Courts, In re Shelley, 231 B.R. 317 (Bankr. D. be rebutted if the debtor shows changes to 1991) or similar cases. Such cases are rejected Neb. 1999)(Minahan, Jr. J.); In re Cox, 2000 expenses or changes to income not otherwise by the means test reforms and the change in Bankr. Lexis 571 (Bankr. N.D. Fla., May 16, accounted for in the means test and that the standard from ‘‘substantial abuse’’ to 2000). meet all of the requirements of the ‘‘special ‘‘abuse’’ in HR 2415. However, situations in It was this evidence which led Congress to circumstances’’ test. Other factors are not which courts dismiss debtors from Chapter 7 conclude that the complete overhaul of sec- relevant. today clearly continue to be grounds for dis- In applying the ‘‘special circumstances’’ tion 707(b) was necessary, with clear, non- missal under HR 2415, including such cases as test, it is important to note that a debtor discretionary requirements imposed on the In re Lamanna, 153 F. 3d 1 (1st Cir. 1998). In who requests a ‘‘special circumstances’’ ad- bankruptcy court to reject the notion that addition, since the standard for dismissal is justment is requesting preferential treat- debtors were entitled to a discharge as a revised to require ‘‘abuse’’ rather than ‘‘sub- ment when compared to other consumers, matter of right without regard to their abil- stantial abuse’’, the courts are clearly given and it is those other consumers who, by pay- ity to pay and to assure that in practice additional discretion to control abusive use ing their debts, must assume the cost of the those with ability to pay would not be enti- of chapter 7 when that is appropriate. debts discharged by the debtors seeking the tled to chapter 7 relief. In the 105th Con- Congress thus intends that the new section preferential treatment. It also is important gress, the House passed HR 3150 and the Sen- 707(b) provide a tightly-focused mechanism to note that, because of the protections es- ate passed S. 1301, two bills which would for identifying bankrupts who have repay- tablished for debtors whose income falls have inserted means-testing in section 707(b). ment capacity and sorting them out of Chap- below the median income level, the pref- A Conference Committee reconciled the two ter 7, as well as dealing with other forms of erential treatment provided under the ‘‘spe- bills and produced a Conference Report (H. abuse. At the same time, the new section cial circumstances’’ standard primarily ben- Rep. 105–794) which passed the House at the 707(b) means test contains procedural safe- efits higher income individuals. end of the 105th Congress but was never guards which ensure that any special finan- As indicated earlier, in order to ensure voted on in the Senate. Senate Report 105– cial circumstances of a debtor will be appro- fairness with respect to the consumers who 253 provides the legislative history of S. 1301. priately considered before he or she is dis- must pay the cost when others discharge House Report 105–540 provides the legislative missed from bankruptcy or converted to an- debts in bankruptcy, it is essential that the History of HR 3150. other chapter. ‘‘special circumstances’’ test establish a sig- THE CURRENT LEGISLATION nificant, meaningful threshold which a debt- ENHANCED CONSUMER PROTECTIONS AND HR 2415 is the culmination of these efforts or must satisfy in order to receive the pref- CREDIT CARD DISCLOSURES and is intended to both remove unequivo- erential treatment. The House/Senate agree- Importantly, HR 2415 retains Title XIX of cally the bankruptcy court’s discretion with ment incorporated in HR 2415 is premised the Senate bill. This title amends the Truth regard to whether a debtor with ability to upon the belief that the relief sought by a in Lending Act (‘‘TILA’’) to require signifi- pay should be dismissed from chapter 7, and debtor who files for bankruptcy is financial cant new minimum payment disclosures in to restrict as much as possible reliance upon in nature and the debtor’s right to obtain connection with open-end credit plans. judicial discretion to determine the debtor’s preferential relief under the ‘‘special cir- Among other things, HR 2415 requires credit ability to pay. Limited judicial discretion re- cumstances’’ provision should be assessed card companies, on the front of each month- mains to deal with the hardship case, but based on financial considerations only. Thus, ly statement, to provide: that discretion is not to be abused by lax en- the agreement is not intended to allow debt- —a statement that making only minimum forcement of the standards in HR 2415. ors to continue expenses unless they clearly payments will increase the interest costs and Section 102 of HR 2415 provides that a demonstrate that they meet the ‘‘special cir- the time it takes to repay the account bal- Chapter 7 case will be presumed to be an cumstances’’ test for such adjustments. ance; ‘‘abuse’’ of Chapter 7 if the debtor has the Under this bankruptcy reform package, the —an example showing the length of time it ability to repay, in a 5–year repayment plan, Office of United States Trustee or bank- would take to repay a specified amount if 25% of the debtor’s nonpriority unsecured ruptcy administrator is required to file a making minimum payments only; and claims (but not less than $6,000), or $10,000, motion to dismiss or convert a Chapter 7 —a toll-free telephone number which card- whichever is less. For purposes of deter- case if the bankrupt’s current monthly in- holders could call to receive additional re- mining the debtor’s repayment ability, sec- come equals or exceeds the state median in- payment information.

VerDate 06-DEC-2000 03:21 Dec 08, 2000 Jkt 089060 PO 00000 Frm 00038 Fmt 4624 Sfmt 0634 E:\CR\FM\A07DE6.052 pfrm02 PsN: S07PT1 December 7, 2000 CONGRESSIONAL RECORD — SENATE S11701 HR 2415 requires the Federal Reserve Board wise be wiped away in bankruptcy. Section audit procedures will restore some integrity to promulgate a table that would set forth 524 of the Bankruptcy Code sets the condi- to the system, since material misstatements information for use by credit card issuers in tions which must be met before such agree- are required to be reported to the appro- responding to cardholders who make inquir- ments will be considered legally binding. The priate authorities. ies through the toll-free telephone number. bankruptcy reform package retains the Sen- ENHANCED PROTECTIONS FOR CHILD SUPPORT Finally, the Federal Reserve Board is au- ate-passed amendments related to the reaf- Balanced bankruptcy reform must protect thorized to study the types of information firmation agreements, with slight changes the status of child support. According to available to consumers regarding factors affecting only credit union debt. some estimates, more than one-third of qualifying potential borrowers for credit, re- HR 2415 also requires the Attorney General bankruptcies involve spousal and child sup- payment requirements, and the consequences to designate prosecutors and investigators to port orders. And in about half of those cases, of default, including information related to enforce current criminal statutes designed to women were creditors trying to collect minimum payments. The study would in- protect debtors in bankruptcy court from de- court-ordered support from their former hus- clude consideration of the extent to which ceptive or coercive collection practices as bands. These support orders are a lifeline for the availability of low minimum payment well as enforcing those same statutes thousands of families struggling to maintain options is a cause of consumers experiencing against debtors in appropriate cases. By self-sufficiency. financial difficulty. committing substantial new resources to HR 2415 contains all of the child support HR 2415 also amends TILA to require cer- fighting abusive creditor and debtor prac- provisions of the Senate-passed version of tain applications or solicitations for credit tices and bankruptcy fraud, it is intended bankruptcy reform (S. 625), including provi- cards that include an introductory rate of that the Department of Justice step up en- sions closing various serious loopholes which less than one year, and all promotional ma- forcement of these under-used statutes. allowed those who owed child support, ali- terials accompanying such an application or The bankruptcy reform package contains a mony and in some instances other marital solicitation, to include the following relat- provision which penalizes creditors who dissolution obligations to use the bank- ing to introductory rates: refuse to negotiate reasonable repayment ruptcy laws to delay and sometimes defeat —use the term ‘‘introductory’’ in imme- schedules outside of bankruptcy. Under this payment of those obligations. HR 2415 also diate proximity to each listing of the intro- provision, the amount that a creditor may contains a new provision which requires ductory rate; and collect in bankruptcy can be reduced if an bankruptcy trustees to notify child support —disclose when the introductory period approved credit counseling agency approved creditors of their right to use state child will end and the annual percentage rate that under the credit counseling provision of HR support enforcement agencies to collect out- will apply at the end of the introductory pe- 2415 for the judicial district in which the standing amounts due. In addition, HR 2415 riod. debtor’s case is pending makes a reasonable permits general creditors to disclose the last In addition, HR 2415 requires a clear and offer of repayment at least 60 days prior to known billing address of a debtor who owes conspicuous disclosure, in a prominent man- declaring bankruptcy and the creditor unrea- child support or alimony to child support ner on or with an application or solicitation, sonably rejects this offer. During Senate claimants. Taken together, these changes of the rate, if any, that will apply if the in- consideration of S. 625, the Department of place child support and alimony claimants in troductory rate is revoked, and a general de- Justice indicated support for promoting al- a far better position under HR 2415 than scription of the circumstances or events that ternative dispute resolution in this way but under current law. would result in such a rate. then suggested that the provision be ‘‘clari- BUSINESS PROVISIONS HR 2415 also requires a credit card issuer to fied’’ in such a way that it will not apply to HR 2415 contains the small business reform clearly and conspicuously provide disclo- governmental creditors. See Letter to The measures from the Senate passed version of sures regarding the key features of the credit Honorable Orrin G. Hatch, Chairman, Com- HR 833. Although business bankruptcy fil- plan, such as interest rate and basic fees, mittee on the Judiciary, April 9, 1999. Thus, ings are low at this time, several changes to with Internet-based credit card applications if the Congress were to accept the sugges- Chapter 11 are warranted. HR 2415 contains and solicitations. These disclosures must be tions of the Department of Justice, non-gov- provisions intended to speed up Chapter 11 readily accessible to consumers in close ernmental creditors would be subject to a for small business debtors, enact rec- proximity to the solicitations and these dis- tougher standard than currently contained ommendations of the United Nations Com- closures must be updated regularly to reflect in the bankruptcy reform package, but the mission on Internal Trade Law regarding the current policies, terms, and fee amounts Internal Revenue Service would be free to transnational bankruptcy and clarify the applicable to the credit card account. HR avoid alternative dispute resolution. Given treatment of tax claims in bankruptcy. 2415 also provides that, if a lender imposes a its history in dealing with taxpayers, it was Importantly, HR 2415 provides new dead- late fee for failing to make payment by the considered inappropriate to create such a lines on tenants under non-residential leases payment due date, the lender must state on special exemption for the Internal Revenue to decide whether to reject or assume leases each periodic statement the payment due Service. date (or, if the card issuer contractually es- under section 365 of the Bankruptcy Code. REDUCING ABUSIVE USES OF THE BANKRUPTCY tablishes a different date, the earliest date Under current law, once a tenant under a CODE on which a late fee may be imposed). The non-residential real property lease has filed lender also must state the amount of the fee As the National Bankruptcy Review Com- for Chapter 11 relief, it has 60 days to decide that will be assessed if payment is received mission correctly noted, many of the worst whether to accept or reject its lease, with ex- after that date. abuses of the bankruptcy system involve in- tensions for cause. Unfortunately, bank- Importantly, HR 2415 amends TILA to pro- dividuals who repeatedly file for bankruptcy ruptcy judges have allowed the exception for vide that an open-end creditor cannot termi- with the sole intention of using the auto- cause to swallow the rule. Today, bank- nate an account prior to its expiration date matic stay (i.e., a court injunction which ruptcy judges routinely extend the time solely because the consumer has not in- arises whenever a bankruptcy case is filed). within which retail debtors must assume or curred finance charges on the account. National Bankruptcy Rev. Comm. Rep., reject the lease for years, including until New disclosures are now required in con- ‘‘Bankruptcy the Next Twenty Years,’’ Octo- confirmation of the plan. Moreover, while nection with consumer credit plans secured ber 20, 1997 vol. 1, at 262. Accordingly, HR these tenant-debtors are supposed to pay by the consumer’s principal dwelling in 2415 contains restrictions on repeat filers and their rent while the proceedings continue, which the extension of credit may exceed the on multiple owners who serially file. It is ex- they do not always do so and bankruptcy fair market value of the dwelling. Under the pected that these changes will dramatically judges have not always compelled them to do amendment, a creditor must disclose at the reduce the number of inappropriate bank- so. time the creditor distributes an application ruptcy filings. Thus, landlords are often left with signifi- to the consumer for such a plan that interest HR 2415 also requires random audits of cant uncertainty since they may have no on the portion of the credit extension that is bankruptcy petitions to verify the accuracy clear indication as to whether a tenant will greater than the fair market value of the of information contained in bankruptcy peti- continue in a lease and the tenant may not dwelling is not tax deductible for federal in- tions, and makes debtor attorney’s respon- be current on post-petition rents. It is hoped come tax purposes. sible to diligently inquire into the accuracy that the provisions contained in the current The Congress also directs that the Federal of the information provided on the schedules. bankruptcy reform agreement will mitigate Reserve Board study the existing protections Many Members of Congress are concerned the unfairness confronting landlords of non- limiting consumer liability for unauthorized that there is little incentive for individuals residential leases. The House bill provided use of debit cards. In addition, the Board is to list all of their assets or fully and accu- that an unexpired lease of nonresidential directed to study the impact that extensions rately disclose their financial affairs, includ- property will be deemed rejected if the trust- of credit to college students have on the rate ing their income and living expenses, when ee has not assumed or rejected it by the ear- of bankruptcy cases filed. they file for bankruptcy. Of course, such lax- lier of the date of confirmation of a plan or In addition to these new credit card disclo- ity fosters an environment in which the a date that is no more than 120 days after the sures, HR 2415 contains several important re- overall financial condition of the bankrupt is date of the order for relief, with an addi- forms which will protect individuals and likely to be inaccurate, with the result that tional 120 days if granted by the court for help them better understand their rights and creditors may receive less than they could cause. The court, under the House bill, could remedies. Reaffirmations occur when a debt- when a bankrupt’s financial affairs are accu- then grant an extension beyond 240 days or agrees to pay a debt which would other- rately disclosed. Accordingly, the random after the date of the order for relief ‘‘only

VerDate 06-DEC-2000 03:21 Dec 08, 2000 Jkt 089060 PO 00000 Frm 00039 Fmt 4624 Sfmt 0634 E:\CR\FM\A07DE6.054 pfrm02 PsN: S07PT1 S11702 CONGRESSIONAL RECORD — SENATE December 7, 2000 upon prior written consent of the lessor.’’ from ‘‘substantial abuse’’ to ‘‘abuse’’ in cap, only projected plan payments which are The Senate bill provided that such a lease order to provide strengthened controls reasonable and necessary should be consid- would be deemed rejected if the trustee has against abusive use of chapter 7. They also ered. Generally, plan payments to pay se- not acted by the earlier of the date of con- replace the presumption against dismissal cured debt should be excluded from projected firmation of a plan or the date which is 120 from chapter 7 with a presumption of dis- plan payments when calculating administra- days after the date of the order for relief. No missal if the debtor has ability to pay as de- tive expenses, unless there is a compelling additional extension is permitted except termined by a new means test. The changes reason for concluding that payment of the ‘‘upon motion of the lessor.’’ Both bills, are intended to broaden rather than limit secured debt would be included in the debt- then, were quite similar, especially in deny- controls on improper use of chapter 7. or’s plan. Although the administrative ex- ing bankruptcy judges discretion in extend- The means test.—Section 102 establishes a penses may be otherwise entitled to priority, ing the deadline for assuming or rejecting a means test enforced by required dismissal it is intended that they be accounted for lease after an absolute period following the from chapter 7. To apply the means test, the under this specific administrative expense order for relief—240 days in the former and debtor must complete revised schedules of provision and not also allowed under the pro- 120 days in the latter. Both the Departments income and expense similar to those now re- vision for priority expenses. of Justice and the Interior favored a 120 day quired, but revised to show net income deter- Actual expenses for private elementary or deadline, with no discretion in the bank- mined in a particular way and a calculation secondary private school tuition not exceed- ruptcy judge. of how much the debtor can afford to pay ing $1,500 per child per year are also deduct- HR 2415 provides that an unexpired non- under the new means test. The means test ible. residential real property lease is deemed re- should for the most part be self-enforcing. It Once the monthly expense allowances are jected if the trustee has not acted by the ear- should be infrequent that a debtor will fill determined, they are then subtracted from lier of the date of confirmation of a plan or out the schedule of income and expenses current total monthly income to obtain the the date which is 120 days after the date of which show that the debtor has ability to debtor’s net monthly income. Net income is the order for relief. The court may extend pay, and still file in chapter 7. Forms should then multiplied by 60. If the result is greater the 120 day period for an additional 90 days, be developed for these revised schedules than the lesser of a threshold amount of (1) prior to the expiration of the 120 day period, which are clear and understandable, and pro- $10,000 or (2) 25% of the nonpriority unse- upon motion of either the trustee or the les- mote accurate and efficient administration cured claims in the debtor’s case but not less sor for cause, for a total of 210 days after the of the means test. The schedules should be than $6,000, there is a presumption that the date of the order for relief. If the court has filed with the debtor’s petition. It is in- debtor’s case must be dismissed from chapter granted such 90 day extension, the court may tended that the anti-fraud provisions of the 7. grant a subsequent extension only upon prior bankruptcy and other laws be applied vigor- written consent of the lessor. This can be in ously by the bankruptcy courts and others This presumption may be rebutted if there the form of (1) a motion of the lessor or (2) whenever fraudulent completion of the are special circumstances that justify ad- a motion of the trustee, provided that the schedules is apparent. justments to income or expenses for which trustee has a prior written consent of the The means test initially focuses upon the there is no reasonable alternative. To claim lessor. Importantly, HR 2415 clearly retains debtor’s net income determined according to such additional expense or income adjust- both bills’ denial of bankruptcy judges’ dis- standards set forth in these sections. The ment, the debtor must itemize, explain and cretion in extending this date: in no cir- debtor’s current monthly income is first de- document why the expense or income adjust- cumstance may the time to assume or reject termined by averaging the debtor’s monthly ment is reasonable and necessary in addition unexpired nonresidential real property leases income for the prior six months and exclud- to meeting the special circumstances test extend beyond the earlier of (1) the time of ing social security or certain war repara- and demonstrates there is no reasonable al- confirmation or (2) 210 days from the time of tions income. Next, the debtor’s monthly ex- ternative to the expenses or income adjust- entry of the order for relief, without the penses are determined. These include month- ment. If it is determined that special cir- prior written consent of the lessor—either in ly expenses as specified under the National cumstances as described do exist, the debtor the form of a lessor’s motion, or in the form Standards and Local Standards issued by the may recalculate income and expenses based of a prior written consent to a trustee’s mo- Internal Revenue Service for the area in on the adjustments and apply the threshold tion, to extend the time. Moreover, a lessor’s which the debtor resides, and the debtor’s ac- to the resulting net income. The presump- written consent to one extension beyond the tual monthly expenses for the categories tion can only be rebutted by demonstrating 210 period does not constitute such consent specified as Other Necessary Expenses under that an expense or income adjustment appro- for a subsequent extension: each such exten- those same standards. The categories speci- priate under the special circumstances test sion beyond 210 days requires the separate fied as Other Necessary Expenses means only causes the debtor’s net income to be below written consent of the lessor. those categories of expense specifically list- the applicable threshold amount. Finally, HR 2415 adds language to Section ed in the Internal Revenue Service Manual An important additional feature of the 365 (f)(1) of the Bankruptcy Code for the pur- at 5323.423(1), (3) and (4). means test is the ‘‘safe harbor.’’ If the debt- pose of assuring that section 365(f) does not It is not intended that additional expenses or’s current monthly income is less than the override any part of Section 365(b). HR 2415 will be deductible except as otherwise speci- appropriate state median income as deter- provides that section 365(f) is not only sub- fied in section 707(b). For example, an addi- mined by current statistical information ject to Section 365(c), but also to Section tional allowance is available if demonstrated supplied by the Bureau of the Census, then 365(b), which is to be given full effect. Con- to be reasonable and necessary up to 5% of only the judge, United States trustee, bank- trary legal interpretations in case law are the monthly allowances for food and cloth- ruptcy administrator, or trustee may bring a overturned. ing categories as specified by the National motion under section 707(b). The safe harbor SECTION BY SECTION EXPLANATION Standards. Moreover, actual monthly ex- provides further limits motions against debt- TITLE I—NEEDS BASED BANKRUPTCY pense allowances are specified for certain ors whose current monthly income is less Sections 101–103: Dismissal for Abuse and the reasonably necessary family violence ex- than the appropriate state median income as Means Test penses and for reasonable and necessary con- determined by current statistical informa- These three sections expand present 707(b) tinued expenses of supporting an elderly, tion supplied by the Bureau of the Census, in of the Bankruptcy Code to require a court to chronically ill or disabled family member. that for such debtors, neither the judge, the dismiss a chapter 7 petition filed by an indi- The debtor’s monthly expenses for priority United States Trustee, the bankruptcy ad- vidual debtor whose debts are primarily con- debts and secured debts (including the aver- ministrator, a private trustee nor a party in sumer debts (or with the debtor’s consent, aged cost of curing arrearages with respect interest can bring a motion to dismiss under convert to another bankruptcy chapter) if to secured debts as permitted in chapter 13) the presumed abuse provisions of the means the debtor’s case meets certain standards. are also deductible. They are determined test. It is expected that the Bureau of the Present law already requires that an indi- based on the average of those expenses over Census will promptly make available state vidual debtor’s case be dismissed if it is a a 60 month period. median income information by family size ‘‘substantial abuse’’ and the debtor’s debts Also allowed are deductions for actual av- for households of 1–4 members based upon in- are primarily consumer debts, but also cre- erage monthly expenses that are entitled to formation it collects. For these purposes, a ates a presumption against dismissal and administrative expense priority under the family or household consists of the debtor prevents anyone other than the court or the Bankruptcy Code, but never more than 10% and the debtor’s dependents, and in a joint United States Trustee from raising the issue. of projected plan payments, as determined case, the debtor’s spouse. The median income There has been concern that present 707(b) is under a schedule to be issued from time to for families larger than 4 persons is deter- not effective to prevent inappropriate use of time as necessary by the Executive Office of mined by taking the monthly median income chapter 7, and in particular debtors who have United States Trustees. This schedule is to for a family of 4 and adding $525 to that fig- ability to repay their debts from using chap- be based on the standing chapter 13 trustee’s ure for each additional family member. ter 7 to obtain a discharge without repaying fee as allowed from time to time in each dis- Under subsection (e) of section 102 of HR creditors what they can afford, needlessly trict and should not include other amounts. 2415, creditors are permitted to report infor- costing consumers who pay their bills in Other fee schedules may be provided for mation concerning a debtor’s failure to sat- higher credit prices. cases when a debtor qualifies for chapter 12 isfy the means test or other abuse to the These sections reorganize present section or would have to use chapter 11 because ex- United States Trustee, bankruptcy adminis- 707(b) to change the standard for dismissal cluded from chapter 13. In applying the 10% trator, case trustee or judge assigned the

VerDate 06-DEC-2000 04:08 Dec 08, 2000 Jkt 089060 PO 00000 Frm 00040 Fmt 4624 Sfmt 0634 E:\CR\FM\A07DE6.055 pfrm02 PsN: S07PT1 December 7, 2000 CONGRESSIONAL RECORD — SENATE S11703 case, and participate with them in the prepa- Administration of the means test.—Several acceptance of the debtor’s word and must be ration and presentation of a motion to dis- important additional provisions assist in the sufficient to verify or disprove any knowl- miss, as in Kornfield v. Schwartz, 164 F. 3d 778 efficient administration of the means test. edge, information or belief which would lead (2d Cir. 1999). Contacts with the judge, how- Enforcement of the means test is in the first a diligent attorney to doubt the accuracy of ever, cannot be ex parte. instance the responsibility of the United the schedules. The bill provides that the Internal Rev- States trustee or bankruptcy administrator Dismissal for abuse.—Dismissal under 707(b) enue Service standards relied upon for the for the district in which the chapter 7 case is is also authorized when there is ‘‘abuse’’. It means test will be studied by the Executive pending. The United States trustee or bank- is intended that by changing the standard Office of United States Trustees, with a re- ruptcy administrator will be involved in de- for dismissal from ‘‘substantial abuse’’ to port to the respective Judiciary Committees termining whether debtors have accurately ‘‘abuse’’, stronger controls will be available of both Houses of Congress within 2 years of disclosed their income and expenses, and in to the courts, the United States trustee or the effective date. preliminarily reviewing debtor’s claims that bankruptcy administrator, private trustees Disposable income test.—This section also ‘‘special circumstances’’ exist which justify and creditors to limit the abusive use of amends section 1325(b)(2) to define disposable adjustments to otherwise allowed monthly chapter 7 based on a wide range of cir- income for cases of debtors with current income and expense amounts. Case trustees, cumstances. The ‘‘bad faith’’ and ‘‘totality of monthly income over median income, using judges and creditors are also entitled to in- the circumstances’’ of the debtor’s situation the same basic concepts, to the extent they vestigate means test issues and raise them is adopted as an appropriate standard. It is are applicable, that are used in applying the by motions to dismiss, or by bringing them intended that all forms of inappropriate and means test. It is intended that there be a to the attention of others involved in the en- abusive debtor use of chapter 7 will be cov- uniform, nationwide standard to determine forcement process. ered by this standard, whether because of the disposable income used in chapter 13 cases, When the debtor’s chapter 7 petition is debtor’s conduct or the debtor’s ability to based upon means test calculations. first filed, the court is to review the debtor’s pay. If a debtor’s case would be dismissed Present law requires that in a chapter 13 income and expense schedule and determine today for ‘‘substantial abuse’’ as in In re plan, all of the debtor’s disposable income be whether this is a case in which the presump- Lamanna, 153 F. 3d 1 (1st Cir. 1998), it is in- used to pay creditors under the plan, but tion in favor of dismissal applies. That will tended that the case should be subject to dis- does not define the term. This section both be determinable on the face of the schedules, missal under H.R. 2415. Cases which have de- requires (1) that all of the debtor’s disposable since debtors are required to do the nec- cided that a debtor’s ability to pay should income be applied to pay unsecured credi- essary calculations of the means test thresh- not be considered when determining abuse, tors, and (2) that for debtors whose current old. If the presumptions arises, the court is or can be outweighed if the debtor is other- monthly income is in excess of the applica- to notify creditors within ten days after the wise acting in good faith, are intended to be ble median income level, their disposable in- case is filed that this is a presumption case. overruled. In dealing with ability to pay Next, the United States trustee or bank- come be determined using basic means test cases which are abusive, the presumption of ruptcy administrator is required to review concepts which define current monthly in- abuse and the safe harbor protecting debtors come (section 101(10A)), and allowable ex- the debtor’s filing to evaluate whether there should be a motion to dismiss filed. The from application of the presumption will not penses (section 707(b)(2)(A)(ii), (iii) and (B)). be relevant. To determine disposable income for those United Sates Trustee or bankruptcy admin- In addition, the standard of abusive con- over the applicable median income level, istrator is to file with the court a statement duct is specifically intended to include con- first, current monthly income as defined in whether the debtor’s case would or would not sideration of whether a chapter 7 filing is HR 2415 is determined. From that amount, be presumed to be an abuse under the means being used without justification to secure re- amounts reasonably necessary to be ex- test of section 707(b) not later than 10 days jection of a personal service contract. pended for the maintenance and support of after the date of the first meeting of credi- the debtor or a dependent of the debtor are tors. Moreover, if the debtor’s current Section 104. Notice of alternatives deducted. The deductions for the expenses of monthly income is over the median income This provision amends Bankruptcy Code providing support and maintenance are to be level and the debtor’s net income is more section 342(b) to expand on the contents of determined in accordance with the standards than the means test threshold, the trustee or the notice which an individual debtor whose of section 707(b)(2)(A) and (B). Thus, the administrator must also either file with the debts are primarily consumer debts must re- debtor is allowed the amounts permitted for court a motion to dismiss, or a statement ceive before filing a bankruptcy petition. food and housing under National Standards why no motion is being filed. However, if the The content and form of the notice is to be and Local Standards issued by the Internal debtor’s gross income is between 100% and prescribed by the United States trustee or Revenue Service. Actual expenses for other 150% of median income, and the debtor’s net bankruptcy administrator for the district in amounts in categories specified as Other income determined in a special short-hand which the petition is filed, and must contain Necessary Expenses are also allowed, just as calculation based on core expenses is under a description of chapters 7, 11, 12 and 13, re- when applying the means test. Expenses for the threshold, the trustee is relieved of any view the benefits and costs of each chapter, secured debts which are paid outside of the obligation to file a motion to dismiss. This the services that are available from a non- plan should be accounted for as required ‘‘mini screen’’ does not change the sub- profit credit counseling agency, and a disclo- under 707(b)(2)(A)(iii), and payments for se- stantive requirements of the means test. Its sure of the debtor’s responsibilities in com- cured debt paid under the plan should be application is limited and is intended only to pleting a petition with respect to the accu- what is provided in the plan as long as it is permit the United States trustee or bank- racy of the schedules and other information not more than the amount permitted under ruptcy administrator to use a short-hand provided. It is intended that this notice will that same provision. Priority debt payments method of calculating the debtor’s income be in an easily understood form, designed to under the plan are not reasonably necessary available to pay creditors. If the short-hand assist debtors in better understanding the al- to be expended and should not be included in calculation of net income indicates that the ternatives for debt adjustment offered by the the calculation, since under this provision, debtor does not meet ability to pay criteria, Bankruptcy Code, the debtor’s responsibil- disposable income is determined for the pur- further administration of the means test is ities in seeking such relief, and as uniform as poses of setting the amount which must be not required. Otherwise, the full means test possible throughout the country. paid to both nonpriority and priority unse- calculation will be made to determine Section 105. Debtor Financial Management cured creditors. The means test only deter- whether dismissal or conversion is appro- Training Test Program priate. In other cases, a similar calculation mines the projected amount available to pay The Executive Office of United States can be made since the short-hand method of nonpriority unsecured creditors. Trustees is directed to develop financial The provision also provides for the adjust- calculation is one stage of the full means management training curricula and mate- ment of the determination of disposable in- test calculation. rials to educate individual debtors in per- come if the debtor has obligations to pay To ensure that debtors and creditors and sonal financial management. The materials child support, foster care payments or dis- their respective counsel do not abuse the are to be developed after consultation with ability payments for a dependent child, and process, they are specifically subjected to experts. The materials are to be tested in 6 for certain continuing charitable contribu- the standards of Bankruptcy Rule 9011 with judicial districts over 18 months. At the end tions as allowed under present law. As with respect to the claims and defenses debtors of the test, a report on the results is to be the means test, adjustments are also per- and creditors and their counsel assert in sec- provided to the Speaker of the House and the mitted to income or expenses based on the tion 707(b) motions. Certain small businesses President pro tem of the Senate. ‘‘special circumstances’’ provisions of the with less than 25 employees are exempted means test. from this requirement. In addition, the accu- Section 106. Credit counseling Once net monthly income is determined, it racy of the schedules the debtor must file Credit counseling is an alternative to fil- is then multiplied by the applicable commit- with the petition, and particularly the state- ing bankruptcy for some debtors. It is in- ment period to determine the total amount ments of assets, debts and income, expenses tended that debtors be fully informed before which the plan must apply over its duration and means test calculations, is enforced by a they file bankruptcy about this less drastic to pay unsecured creditors. If the plan does requirement that debtor’s counsel have no alternative to bankruptcy in all instances, not apply all of disposable income to pay un- knowledge that the schedules are incorrect but particularly when they have only re- secured creditors, the plan is not confirm- after appropriate inquiry. An attorney’s in- ceived information about their alternatives able. quiry is expected to be more than a cursory from petition preparers or attorneys.

VerDate 06-DEC-2000 03:21 Dec 08, 2000 Jkt 089060 PO 00000 Frm 00041 Fmt 4624 Sfmt 0634 E:\CR\FM\A07DE6.057 pfrm02 PsN: S07PT1 S11704 CONGRESSIONAL RECORD — SENATE December 7, 2000 This provision establishes the requirement expenses for these purposes include only the It is intended that a single nationwide form that before individual debtors file for bank- chapter 13 trustee’s fee as allowed in the dis- as set out in the statute will be used for all ruptcy, they must be made aware that credit trict from time to time, and that the sched- reaffirmations in all bankruptcy courts, and counseling services are available. Debtors ules will be revised as necessary to reflect that it will be the only disclosure required in are not required to actually undergo credit changes in that fee. Since the trustee’s fee is the reaffirmation process. It is expected that counseling, but they must be made aware determined as a percentage of payments the nationwide form will assist those who that such alternatives to bankruptcy do made to creditors, the Director may deter- teach budgeting and financial management exist. The case of a debtor must be dismissed mine that the appropriate way to state the in secondary schools, provide credit coun- if it is filed without meeting that require- schedule is by providing percentage amounts seling, or assist those in financial difficulty ment unless the debtor can demonstrate exi- and a method for determining projected plan in educating consumers about the benefits gent circumstances which temporarily ex- payments. These will generally just be unse- and disadvantages of reaffirmations so that cuse satisfying the requirement. It is ex- cured debts unless there is a compelling rea- debtors who do reaffirm will be better in- pected that when courts do not enforce this son to conclude otherwise. formed about what they are doing. The pro- requirement sua sponte, the United States TITLE II—ENHANCED CONSUMER PROTECTIONS vision is also intended to create a nationwide method of processing reaffirmations so that trustee or bankruptcy administrator will Section 201. Promotion of alternate dispute reso- companies who must administer reaffirma- bring the matter to the court’s attention by lution appropriate motion, but any trustee or other tions in several areas are freed from special party in interest could do so. This section permits the court, on motion requirements in particular localities. Concern has been expressed that the bank- of the debtor and after a hearing, to reduce The statutory form, in addition to clearly ruptcy relief debtors obtain under present a claim based in whole on unsecured con- explaining to debtors what they are doing law stops at the discharge, failing to educate sumer debts by not more than 20% if (1) the when they reaffirm, also provides a form debtors about basic budget management so claim was filed by a creditor who unreason- which may be used as the reaffirmation they can avoid financial difficulties in the ably refused to negotiate a reasonable alter- agreement and a form for the debtor’s attor- future. Under this section, individual debtors native repayment system proposed by an ap- ney’s certification when the debtor is rep- will be required to attend a course of in- proved credit counseling agency acting on resented. Debtors must also fill out a Part D struction in personal financial management behalf of the debtor; (2) the debtor’s offer in which they state their ability to pay the approved by the United States trustee or was made at least 60 days before the filing of amount being reaffirmed based upon their in- bankruptcy administrator for the district in the bankruptcy petition and provided for come and expenses, including other re- which the petition is filed. It is intended payment of at least 60% of the debt over the affirmed debts. If debtors cannot complete that the United States trustees and bank- repayment period of the loan, or a reason- the form showing they have ability to pay ruptcy administrators will strongly promote able extension thereof; and (3) no part of the the reaffirmed amount, there is a presump- the development of effective courses, both debt under the alternative repayment sched- tion of undue hardship for a period of 60 through the formal approval process and in- ule is nondischargeable. An approved credit days, and the reaffirmation must be sub- formally. If the debtor fails to attend a re- counseling agency means one approved under mitted for review by the court even when the debtor’s attorney certifies that the reaffir- quired course, the debtor will not be able to the credit counseling provisions of this Act. mation is in the debtor’s best interest. Since obtain a discharge in either chapter 7 or 13. This section applies only to claims which income and expenses for these purposes are Provisions similar to those applicable to are based on debts which are wholly unse- those the debtor will have post-discharge, credit counseling allow the United States cured consumer debts. The provision is also the standards of income and expense under trustee or bankruptcy administrator to ex- carefully drafted so as only to require credi- section 102 of HR 2415 are not relevant. The cuse all filers in a district from the require- tors to negotiate, when reasonable, alter- debtor’s actual post-discharge income and ment if the trustee or administrator finds native repayment systems so long as they expenses as the debtor determines them will that there are not enough providers of the are reasonable. It does not require creditors control. courses in the district. Congress intends that to accept any alternative repayment pro- posal, although it is expected that negotia- Credit unions are permitted to change the this exemption will not be lightly imposed, form to reflect that the debtor may fill out and that the trustee or administrator will tions could result in reasonable alternative plans being adopted. Furthermore, the debt- a simpler Part D when a credit union mem- use every reasonable effort to see that there ber is reaffirming a debt. The credit union are adequate credit counseling and courses of or’s proposal must provide for at least 60% repayment to the creditor. The debtor’s pro- member only needs to indicate that will pay instruction available. the reaffirmed obligation, and there is no Credit counseling agencies and courses of posal should not be considered reasonable if presumption of undue hardship or require- instruction concerning financial manage- it is unlikely the debtor will be able to make the repayments as proposed. ment of review by the judge. ment included in the program must be ap- Creditors and debtors must make good Section 202. Effect of discharge proved by the United States trustee or bank- faith efforts to comply with the require- ruptcy administrator for the district. This A creditor’s willful failure to credit plan ments imposed by this section. However, section sets standards which the United payments in the manner required by the plan there is no intention that errors in com- States trustee or bankruptcy administrator is a violation of the post-discharge injunc- pleting or using the disclosure forms or com- must apply in deciding whether to approve a tion under section 524(a)(2) if the creditor’s plying with the procedural requirements of particular agency or course. Prior to ap- acts to collect and failure to credit payments this section will be construed as a violation proval, the qualifications of the agency or in the manner required by the plan causes when those errors occur in good faith. Under course are to be carefully reviewed by the material injury to the debtor. However, if a present law, violations of the reaffirmation United States trustee or bankruptcy admin- plan has been dismissed, is in default, or the requirements are enforceable only as viola- istrator. It is intended that they will require creditor has not received payments required tions of the post-discharge injunction. En- applicants to provide adequate information under the plan, the failure to credit the pay- forcement of the injunction is an equitable about qualifications and programs for this ments is not a violation of the injunction. proceeding in which the equities are purpose. Agencies and courses will be ini- This provision also clarifies that it is not weighed, courts take into account the good tially approved only for a probationary pe- a violation of the post-discharge injunction faith of the creditor. Under this section, riod of no more than 6 months. After that, for a creditor that holds a claim secured in creditors may accept payments from debtors their qualifications and performance will be whole or in part by real property that is the before and after the filing of a reaffirmation reviewed each year by the United States debtor’s principal residence to take actions agreement, and may accept and retain pay- Trustee or bankruptcy administrator. Re- in the ordinary course of business to seek or ments under a reaffirmation agreement view of the United States trustee or bank- obtain periodic payments associated with a which the creditor believes in good faith to ruptcy administrator’s decision to renew ap- valid security interest in lieu of a mortgage be effective, even though subsequently it is proval for the first full year term after the foreclosure or other enforcement proceeding determined that the reaffirmation agree- probationary period and every 2 years there- not barred by the injunction. Congress in- ment is not in fact effective. For example, if after is available in the United States dis- tends this provision to clarify the law in this the creditor and debtor agree that the debtor trict court at the request of any party in in- area so as to provide a safe harbor for mort- is responsible to file the reaffirmation agree- terest. In addition, at any time the district gage lending, but the existence of this clari- ment, and the debtor does not do so, the court sitting as a bankruptcy court can re- fying provision is not intended to suggest creditor should be able to accept and retain view and disapprove an agency or course of that similar action taken by creditors whose payments from the debtor unless it knew the instruction. debt is not secured or is secured by other debtor had not in fact filed the agreement Section 107. Schedule of reasonable and nec- types of property would be a violation of the with the court. Likewise, if a debtor indi- essary expenses post-discharge injunction. cates that he or she has ability to pay in This provision directs the Director of the Section 203. Discouraging abuse of reaffirmation Part D, a creditor can rely upon that state- Executive Office of United States Trustees to practices ment. Moreover, the requirements of sub- issue schedules of reasonable and necessary This provision amends section 524(c)(2) of section (c)(2) and those added by this section administrative expenses for each judicial dis- the Code to provide a clearly understandable are satisfied if the disclosures required under trict not later than 180 days after enact- disclosure form to explain the debtor’s rights those provisions are given in good faith. For ment. It is intended that the administrative and obligations in the reaffirmation process. the purposes of this section, ‘‘good faith’’ is

VerDate 06-DEC-2000 03:21 Dec 08, 2000 Jkt 089060 PO 00000 Frm 00042 Fmt 4624 Sfmt 0634 E:\CR\FM\A07DE6.059 pfrm02 PsN: S07PT1 December 7, 2000 CONGRESSIONAL RECORD — SENATE S11705 to be broadly construed as honesty in fact There were a number of areas under former Section 211. Definition of domestic support obli- under the circumstances. The narrow stand- law where these goals were not met. Support gation ard of good faith under the Truth in Lending and debts in the nature of support were not To ensure that all debts relating to the Act is not intended. treated uniformly in the Bankruptcy Code or support of a debtor’s spouse, former spouse, The requirements of present law are con- by bankruptcy courts. Conspicuously, debts family or child are given a similar treatment tinued that debtors who do not have counsel owed to the government and based upon the in bankruptcy, section 211 of HR 2415 pro- who will certify that a reaffirmation is in payment of government funds for the main- vides a sweeping definition for the concept of the debtor’s best interest must have the reaf- tenance and support of the children or fam- a ‘‘domestic support obligation.’’ This defini- firmation approved by the court before it can ily of the debtor were not given the advan- tion is intended to clarify the following: be effective. Otherwise, a reaffirmation is ef- tages which the Code affords to debts pay- 1. The domestic support obligation in- fective upon filing the completed and signed able directly to the family of the debtor. cludes interest on that obligation as pro- statutory form and reaffirmation agreement Specifically, support debts assigned or owed vided under applicable nonbankruptcy law. with the court. to the government on the petition date have Thus, if a State provides for prejudgment or The provision also directs that United not been entitled to any priority under sec- postjudgment interest on support, such in- States attorneys in each district will des- tion 507(a), have not been protected from loss terest is included in the definition of a do- ignate a specific person within their offices of their secured status under section mestic support obligation. to address violations of criminal law relating 522(f)(1)(A), and have been recoverable by the 2. To be nondischargeable support, the ob- to bankruptcy crimes when they involve trustee as a preference under section ligation must be owed to or recoverable by a abusive reaffirmations or materially fraudu- 547(c)(7)(A). Conversely, support debts which ‘‘spouse, former spouse, or child of the debt- lent statements on schedules. were not assigned on the petition date were or or such child’s parent, legal guardian, or Subtitle B—Priority Child Support entitled to superior treatment as provided in responsible relative’’ or the debt must be sections 507(a)(7), 522(f)(1)(A), and Bankruptcy law has long recognized the owed to a governmental unit. As distin- 547(c)(7)(A). guished from former law as interpreted by legal and moral importance of the payment Because support debts which are assigned the courts, the debt no longer need be owed of obligations incurred by a debtor for the to a governmental entity when a petition is to the person or entity filing the claim. It support of his or her spouse and children. As filed may become unassigned during the need only be recoverable by such entity. This such, it has striven to avoid having bank- course of a Chapter 12 or 13 bankruptcy plan, definition is meant to preserve present stat- ruptcy become a haven for those who would and vice versa, the disparate treatment of utory or decisional law affecting the avoid such obligations or an inadvertent im- these debts in the Bankruptcy Code makes dischargeability of debts in the nature of pediment for those who wish to comply with little sense. A family which is in need of sup- support owed to attorneys or other persons those obligations. However, the treatment of port after assistance terminates certainly or entities providing assistance to the cred- domestic support in bankruptcy had devel- should not lose the advantages the Code itor spouse and children in a domestic pro- oped somewhat haphazardly over time as gives unassigned support simply because the new issues and concerns have been raised and support was assigned on the petition date. ceeding. Nor is there any remaining require- addressed piecemeal. Moreover, the Code had The contrary was also true. Governmental ment that the debt be assigned to a govern- lagged behind in dealing with the changing entities under former law received the ad- ment or recoverable under Title IV–D of the legal status of payments made to govern- vantages given to the creditor of unassigned Social Security Act for the debt to be ex- mental entities for such obligations, specifi- support when the support became assigned cepted from discharge. The debt need only be cally whether such payments were to be paid during bankruptcy. An overriding purpose of owed to or recoverable by a governmental directly to support the child or family of the Subtitle B is to eliminate substantially such unit. Likewise, the debt does not become dis- debtor, or were to be retained by the govern- distinctions in the treatment of support obli- chargeable simply because the support was ment because the parent or child was receiv- gations. ordered to be paid to the government or a ing public assistance. In addition to the disparate treatment of nonparent. Support ordered to be paid to a Under current nonbankruptcy law the sta- support debts found in the Code, the courts legal guardian or responsible relative is also tus of a support obligation may change rap- also drew distinctions with respect to the not dischargeable. idly as the recipient moves on or off govern- dischargeability of support debts owed to the 3. As under the former law, to be excepted ment assistance even though the underlying government and support debts owed to the from discharge the debt must be ‘‘in the na- responsibility to support the child or family parent or child of the debtor. These distinc- ture of support.’’ Unlike the former law, is unaltered. Thus, there is little reason for tions were often arcane and technical. To il- however, a debt based upon assistance pro- payments of domestic support obligations to lustrate, if the debts were owed to the gov- vided by a governmental unit for the benefit governmental entities not to be treated ernment and based upon the payment of pub- of a spouse, former spouse or child of the equally with payments of such obligations lic assistance, the dischargeability of such debtor, is now specifically included as a debt directly to a parent or child, or for a debtor debts turned on the irrelevant circumstance in the nature of support. This classification to have a lesser duty to satisfy those debts. of when the aid was paid. As a result, judg- applies whether or not the debt incurred by Prior to HR 2415 the principle of favored ment debts for support based upon the pay- the debtor is specifically designated as sup- treatment for all domestic support obliga- ment of public assistance prior to the date a port and whether or not the spouse, former tions had only been partially recognized in petition for on-going support was entered spouse or child has a separate legal right to the Code, and there were a number of areas could be discharged while an arrearage ac- establish a support obligation. in which bankruptcy filings impacted domes- crued under an on-going order could not, 4. Under former law the support debt had tic matters which were not dealt with at all. even when the support debts were based on to made ‘‘in connection with a separation Accordingly, Congress undertook a com- identical criteria. And contributing to a lack agreement, divorce decree, or other order of prehensive review of all aspects of the treat- of uniformity, the decisional law was not a court of record.’’ Therefore, it was argu- ment of domestic support obligations under consistent. Moreover, many debts which able that if the debt had not been reduced to the Code to determine how to create a coher- were incurred by a debtor based upon the re- an agreement, decree or order on the date a ent and consistent structure to deal with sponsibility of a governmental entity to pro- petition for relief was filed, it was not ex- such obligations in bankruptcy. vide for the support and maintenance of a cepted from discharge. The new definition of The following basic principles were em- child, but which debts were never owed to a domestic support obligation specifies to ployed in the support amendments contained the child or family of the debtor directly, the contrary that the debt may be estab- in these provisions: could be discharged. In particular the fol- lished ‘‘or subject to establishment before or 1. Bankruptcy should interfere as little as lowing were found to be dischargeable: debts after an order for relief’’ to qualify as a non- possible with the establishment and collec- incurred for the costs of maintenance of a dischargeable debt. tion of on-going obligations for support, as child in a juvenile detention facility; debts 5. Finally the definition of a domestic sup- allowed in State family law courts. incurred to support a child who was made a port obligation continues to exclude support 2. The Bankruptcy Code should provide a ward of the state; debts for support which which has been assigned to a nongovern- broad and comprehensive definition of sup- had not been reduced to a judgment at the mental entity, unless the assignment is port, which should then receive favored time the bankruptcy petition was filed; and merely made for the purpose of collecting treatment in the bankruptcy process. debts for child support and maintenance re- the debt. This definition codifies existing 3. The bankruptcy process should insure sulting from the placement of the debtor’s case law. the continued payment of on-going support children in shelter care facilities. In all of Having created this definition of a ‘‘domes- and support arrearages with minimal need these situations debtors have the same legal, tic support obligation,’’ HR 2415 uses it in for participation in the process by support equitable, and moral obligations to provide twenty specific places. In so doing, HR 2415 creditors. for the support of their children, but under generally treats support related debts simi- 4. The bankruptcy process should be struc- the peculiarities of former law they could larly, no matter how the debt arose or to tured to allow a debtor to liquidate non- transfer that burden to the taxpayers. The whom the debt is owed. dischargeable debt to the greatest extent domestic support enforcement provisions of Section. 212. Priorities for claims for domestic possible within the context of a bankruptcy HR 2415 is designed to insure compliance support obligations case and emerge from the process with the with those obligations, during and after All domestic support obligation debts are freshest start feasible. bankruptcy. given a first priority. Within that priority

VerDate 06-DEC-2000 03:21 Dec 08, 2000 Jkt 089060 PO 00000 Frm 00043 Fmt 4624 Sfmt 0634 E:\CR\FM\A07DE6.061 pfrm02 PsN: S07PT1 S11706 CONGRESSIONAL RECORD — SENATE December 7, 2000 two categories of support debts are estab- the extent they do not require affirmative out any bankruptcy imposed limitation. The lished. Support debts owed directly to sup- action on the part of a support creditor to purpose of this provision is to allow income port recipients, as of the date of the bank- implement them. Payment of domestic sup- withholding to be implemented or to con- ruptcy petition, are paid prior to debts owed port obligation arrears, in order to receive a tinue after a Chapter 11, 12 or 13 petition is or assigned to the government. Therefore all discharge, is required only to the extent filed, just as it would if a Chapter 7 petition claims filed as priority 1(A) must be paid ‘‘provided for by the plan.’’ Thus, agree- were filed. The income withholding provi- prior to claims filed as priority 1(B). ments made at the time of confirmation to sions were enacted to allow compliance with When, however, such claims are filed by a accept less than full payment or the use of procedures mandated in the Child Support governmental unit and that unit receives ‘‘cram down’’ rights possessed by the debtor Enforcement Program, Social Security Act, payments on the claim, the subsequent ap- may allow the debtor to receive a discharge Title IV–D. Income withholding applies to plication and distribution of moneys are gov- without full payment of all prepetition do- the collection of on-going support and sup- erned not by the claim as it existed on the mestic support obligations. Of course, com- port arrearages. It may be implemented by petition date, but by nonbankruptcy law ap- pletion of such a plan would not discharge court order or through an administrative plicable to such governmental units. Thus, any remaining domestic support obligations, process. receipt of money claimed as a priority 1(A) but would allow the debtor to be relieved 3. Use of other support enforcement tech- debt may be distributed by the government from other debts covered by the general dis- niques are also excepted from the reach of to reimburse itself for the payment of public charge under the relevant chapter. the automatic stay. Under the amendment, assistance if the creditor assigns that debt to 4. HR 2415 allows, but does not require, the the withholding, suspension, or restriction of the government postpetition. Likewise, debtor to include in a plan the payment of drivers’ licenses, professional and occupa- debts which are assigned to the government postpetition interest on a nondischargeable tional licenses, and recreational licenses prepetition and claimed as priority 1(B) debt if the debtor is able to do so after pay- under state law as provided in the Social Se- debts will be distributed directly to the sup- ing other debts. This provision is a departure curity Act is not stayed. Likewise, the auto- port obligee if the debt is no longer assigned from former law which did not allow a claim matic stay does not bar the reporting of as of the date the government received the for interest, unless the claim was secured, overdue support to a consumer reporting funds. even though interest continued to accrue on agency as required by the Social Security Other changes in distribution may also nondischargeable debts. As a result, even if Act. Also excepted from the automatic stay occur. If the trustee pays a governmental en- the debtor provided for full payment of the is the interception of tax refunds as required tity on a claim in one month, and the debtor prepetition support debt, this debtor would by the Social Security Act. Thus, refunds owes but has not paid a support order accru- be left at the end of the plan with a remain- which are payable to the debtor by the State ing in that month, the governmental unit ing debt for interest. Accordingly, while a taxing authorities or the IRS, and even re- may credit the payment to the current debtor will often not have sufficient income funds which the debtor intends to include or month’s obligation, not to the claim. The to make postpetition interest payments, the includes in his or her bankruptcy estate, governmental unit may also credit any pay- debtor may wish, if feasible, to make such may be seized to satisfy support obligations ment received on the claim against newly payments in order to obtain a fresh start at as required or allowed under State and fed- accrued postpetition judgment interest, the completion of the plan. eral law without requiring relief from the rather than against the principal portion of Section 214. Exceptions to automatic stay in do- automatic stay. Finally, under the enforce- the claim. The purpose of these rules relat- mestic support obligation proceedings ment of medical support obligations as man- ing to governmental support claims is to HR 2415 also adds additional exceptions to dated by the Social Security Act is not allow the distribution of money received as the automatic stay. Under section 362(a) var- stayed. support in the same manner it would be dis- ious activities of creditors are stayed once a Section. 215. Nondischargeability of certain tributed if the debtor had not filed a bank- bankruptcy petition has been filed. Under debts for alimony, maintenance, and sup- ruptcy petition. former law there were exceptions to the port Section 213. Requirements to obtain confirma- automatic stay which permitted the estab- This section makes all domestic support tion and discharge in cases involving domes- lishment of paternity, and the establishment obligations non-dischargeable. The most sig- tic support obligations or modification of a support order but they nificant effect of this change is that all debts Section 213 sets up four check points to en- did not deal with a number of other domestic owed to a governmental entity which are de- sure that debtors are complying with their issues. In addition, under former law the rived from payments by the government to domestic support obligations when they have automatic stay did not apply to the collec- meet needs of the debtor’s family for support filed a bankruptcy case under Chapters 11, tion of support so long as it was collected and maintenance are excepted from dis- 12, and 13. from property which was not property of the charge. This change will nullify the holdings 1. A case can be converted or dismissed at bankruptcy estate. Since property of the es- cited in footnotes 2, 4, 5, 6, and 7. By amend- any time if the debtor does not remain cur- tate included debtor’s income in Chapter 12 ing 523(a)(5) and (15), all ‘‘domestic support rent in the payment of an on-going support and 13 cases, at least until confirmation of obligations’’ as broadly defined in new sec- obligation. Under former law the Code did the plan, a support creditor had no way of tion 101(14A) of the Bankruptcy Code are ex- not explicitly require such payments or man- obtaining either on-going support or cepted from discharge. date an early termination of a plan when a prepetition support arrearages, unless the Section 215 also makes nondischargeable debtor was not in compliance with an on- obligor/debtor paid these debts voluntarily all non-support debts incurred in connection going support order, although some courts or the creditor obtained relief from the stay. with a divorce or separation. Previously such used their discretion to dismiss such cases These amendments deal with both issues. debts may have been determined to be non- for ‘‘cause.’’ HR 2415 allows the court to con- They include the following: dischargeable only if the support creditor vert or dismiss a Chapter 12 or 13 plan for 1. The existing exceptions are amended to brought a timely proceeding to determine failure of the debtor to pay postpetition on- refer to the new definition of a domestic sup- the dischargeability of the debt and proved going support. port obligation. Additional language is added not only that the debtor had the ability to 2. To be confirmed a plan must provide for to clarify that certain other family-related pay the debt but that discharging the debt payment of all past due priority claims for matters such as custody, divorce, and domes- would result in a benefit to the creditor domestic support obligations. The Code does, tic violence proceedings may continue to be which outweighed the detriment to the debt- however, provide two exceptions. It allows a pursued without obtaining relief from the or. This provision gives debts resulting from creditor the option of accepting less than automatic stay except to the extent a di- the division of property the same protection full payment under the plan. It also allows a vorce proceeding seeks to deal with the divi- from discharge as support debts. debtor to ‘‘cram down’’ a less than full pay- sion of estate property. Property division ment plan for priority support debts which issues in a divorce are not intended to im- Section. 216. Continued liability of property are assigned to a governmental entity, so pinge on the exclusive jurisdiction of the Section 522(c)(1) of the Code, as amended long as the plan provides for payment of all bankruptcy court over estate assets. by this section, incorporates the new defini- disposable income of the debtor for the max- 2. Section 362(b)(2)(C) is added to provide tion of a domestic support obligation into imum five year period allowed for a plan in for the withholding of income from property the existing provision which subjects other- Chapters 12 and 13. However, since these of the debtor or from property of the estate wise exempt assets to debts for non- debts will not be discharged in any event, for the payment of a domestic support obli- dischargeable taxes and support obligations. the debtor will be given a substantial incen- gation. In this provision Congress has di- This section expands this principle to pre- tive to propose and complete such a plan. vested the bankruptcy court of exclusive ju- empt state law and specifically provides that 3. A plan under Chapters 11, 12, and 13 may risdiction over the bankruptcy estate to the under federal law such exempt property must not be confirmed unless the debtor has re- extent a debtor’s wages are estate property. be made available to satisfy a domestic sup- mained current in the payment of all support Under prior law such withholding would have port obligation, notwithstanding state law first becoming due postpetition. Nor can a been allowed only if it were determined that to the contrary. The purpose of this provi- debtor in a Chapter 12 or 13 case obtain a dis- the debtor’s income was no longer property sion is to nullify the Fifth Circuit en banc charge unless all support becoming due of the estate. This section specifically allows holding in Matter of Davis, 170 F.3d 475 (5th postpetition has been paid. These provisions the use of estate property to pay support Cir. 1999), and to reinstate the holding of the are designed to be self-executing, at least to through the wage withholding process with- original Fifth Circuit panel.

VerDate 06-DEC-2000 03:21 Dec 08, 2000 Jkt 089060 PO 00000 Frm 00044 Fmt 4624 Sfmt 0634 E:\CR\FM\A07DE6.062 pfrm02 PsN: S07PT1 December 7, 2000 CONGRESSIONAL RECORD — SENATE S11707 Section 522(f)(1) allows a debtor to avoid ings plans allowed to be exempt from current Qualified State Tuition Programs are pulled judicial liens on exempt property, but con- income taxation under the Internal Revenue into the bankruptcy estate of the debtor be- tains an exception for liens which secured Code. It provides protection from creditors’ cause of certain rights of the donor. unassigned child support. This section ex- claims for tax-favored retirement plans or Therefore, with certain exceptions, section tends this exception to domestic support ob- arrangements which are not already pro- 225 excludes from a debtor’s bankruptcy es- ligations. Therefore, any judicial lien placed tected from creditors’ claims under current tate funds and earnings on such funds con- on the debtor’s property which secures a sup- law. The section carries no implication that tributed to an account established pursuant port related obligation, whether assigned or the protection from the bankruptcy estate to a qualified state tuition program under not, may not be avoided even though the lien afforded to plans by virtue of section 541 of Section 529 of the Internal Revenue Code of impairs the exemption to which the debtor the Bankruptcy Code as applied in the 1986, as amended (‘‘IRC’’). The funds in these would otherwise have been entitled. Shumate decision, and the line of cases fol- accounts may be used for qualified higher Section 217. Protection of domestic support lowing that decision, or by any provision of education expenses (including tuition, fees, claims against preferential transfer motions the Bankruptcy Code or other state or fed- books, supplies and room and board) of a des- ignated beneficiary of the debtor and cannot Section 547(c)(7) previously barred the eral law that protect plan assets from credi- be transferred to any person other than a trustee from recovering, as a preferential tors, is in anyway reduced. This amendment qualified family member without adverse transfer, bona fide payments of an unas- to the Bankruptcy Code is in accordance federal tax and other consequences. Section signed support obligations. This section ex- with longstanding Congressional policy of 225 would only permit exclusion from the tends this exception to all domestic support conserving and preserving plan assets for use bankruptcy estate funds in qualified state obligations. as retirement security for participants in their retirement years. As such, it is in- tuition programs for a restricted group of Section 218. Disposable income defined tended to be in addition to the protections designated beneficiaries, limited to children This section adds language to the dispos- provided by current law and is not in any and grandchildren (including step-children able income test under chapters 12 and 13. way intended to supplant or supercede pro- and step-grandchildren). The provision rec- The language added to chapter 13 simply re- tections which exist in current law. ognizes that adopted and foster children fall peats language already added by section 102 Section 224 covers plans that have received into this category and that ‘‘step-grand- of this Act. determination letters from the Internal Rev- child’’ is intended to include both the step- Section 219. Collection of child support enue Service as well as plans, such as public child of the debtor’s child as well as the child This section improves the information plans, that have not received such letters of the debtor’s stepchild. This provision makes clear that, subject to available to child support and alimony but are intended to be operated in accord- certain requirements, contributions to these claimants when the person who owes support ance with ERISA and or Internal Revenue accounts are not to be pulled into the debt- or alimony files for bankruptcy. In those Code, as applicable. It also covers plan assets or’s estate for bankruptcy purposes. All con- cases, the chapter 7, 11, 12 or 13 trustee is to in transit such as when they are directly tributions and earnings thereon are thus pro- provide both the support claimant and the transferred by a plan administrator to a plan tected except: (1) contributions made to a State child support collection agency with sponsored by another employer or to an Indi- program less than 365 days before the date of information about the filing, and inform the vidual Retirement Account. The same pro- filing the bankruptcy petition; or (2) con- claimant about the availability of free or tection is provided when the plan assets are tributions in excess of $5000 made to a pro- low cost collection services through the distributed directly to an employee upon ter- gram less than 720 days before filing the State agency. Additionally, when the debtor mination of employment and within 60 days bankruptcy petition. is discharged, the trustee is to notify the of the distribution of the employee transfers Section 225 includes similar provisions ex- claimant and the State agency of the fact of the distributed amount in another qualified tending protection to funds placed in edu- the discharge and certain information about retirement plan or into an Individual Retire- cation individual retirement accounts, as de- the location of the debtor. If a debt has been ment Account. fined in Section 530 of the Internal Revenue determined to be nondischargeable or is re- In addition, the Section provides that if Code. affirmed, the trustee is also to notify the there is an outstanding pension plan loan to claimant and the State agency of the name a participant at the time of bankruptcy fil- Sections 226–229. Debtor’s bill of rights of the creditor affected. Creditors whose ing such loan is not to be discharged or a These four sections, derived from federal names are the subject of a notification are stay issued on any withholdings from the law regulating credit repair agencies, pro- required, when asked, to provide the last wages of the debtor that are being used to vide for new disclosures and restrictions on known address of the debtor. make level repayments of the loan. A stay of practices with which bankruptcy petition the withholding would result in a default and preparers, attorneys and anyone else who Section 220. Nondischargeability of certain edu- under the ERISA rules cause the amount of meets the definition of a debt relief agency cational benefits and loans the unpaid balance to become taxable in- must comply. Congress was concerned that This provision makes certain student loans come. The ensuing tax liability would take debtors who file bankruptcy be better in- offered by non-governmental creditors non- precedence over unsecured creditors’ claims. formed about the nature and scope of bank- dischargeable. A plan loan is actually a special nontaxable ruptcy, the different remedies that are avail- Section 221. Amendment to discourage abusive distribution which the participant is ex- able, and the significance of the step they bankruptcy filings pected to return to the plan. are taking, so that they can both better This provision inserts strong new regula- Under the asset limitation provision of evaluate it, better understand what is going tion of bankruptcy petition preparers. It is this section, the maximum amount exempt to happen, and better protect themselves. It intended that this regulation be strongly en- for bankruptcy purposes in an IRA or Roth/ is also the intent that debtors be better able forced. IRA, other than a simplified employee pen- to negotiate with their attorneys about fees Section 222. Sense of Congress sion under section 408(k) of the Internal Rev- and services provided. For example, provi- enue Code or a simple retirement account sions require that debtors be clearly in- The sense of Congress is expressed that under 408(p) of the Internal Revenue Code, is formed about what services an attorney will States should develop courses on personal fi- limited to $1,000,000, excluding rollover con- provide the debtor and for what fee. nances for use in primary and secondary edu- tributions under 402(c), 402(e)(6), 403(a)(4), Bankruptcy petition preparers must com- cation. Consumer credit has become widely and 403(a)(5) of the Internal Revenue Code, as ply with these provisions as well as those im- available in our economy. Congress considers well as earnings thereon. The $1,000,000 max- posed under the Code and section 221 of HR it to be of the greatest importance that edu- imum amount is subject to adjustment under 2415. cational programs like those sponsored and section 104 of the Code. In addition, the promoted by the Jump Start Coalition of Section 226. Definitions $1,000,000 maximum amount is subject to in- governmental and private entities be encour- This section defines various terms, includ- crease if the interests of justice so require. aged. By educating children when they are ing who is an ‘‘assisted person’’, what is young in the basics of personal financial Section 225. Protection of Education Savings ‘‘bankruptcy assistance’’, and who is a ‘‘debt management, inappropriate use of consumer Section 225 protects certain educational relief agency’’. It is intended that these pro- credit can be reduced, and better ability of savings in the event of bankruptcy. Qualified visions be broadly interpreted since they de- average citizens to manage financial crises State Tuition Programs represent a joint ef- fine the scope of the protections which debt- can be promoted. fort by the federal government and the ors receive under the related provisions. Au- Section 223. Additional amendments states to encourage saving for post-sec- thors, publishers, distributors or sellers of ondary education. Congress has expressed a works subject to copyright protection when This section provides a new 10th priority clear interest in encouraging the post-sec- acting solely as such an author, publisher, under section 507 of the Bankruptcy Code for ondary education of children by permitting distributor or seller are excluded from the claims based on driving while intoxicated individuals to save exclusively to cover the definition. Thus an attorney who writes a under influence of drugs. expenses of higher education through Quali- book on how to file bankruptcy is not a debt Section 224. Protection of retirement savings fied State Tuition Programs on a tax-favored relief agency when promoting or selling the This provision broadens the exemptions for basis. However, Congressional interest in copyrighted book. But when that same attor- retirement savings available under present promoting saving for post-secondary edu- ney represents debtors filing petitions, the law to cover all forms of pensions and sav- cation would be frustrated if accounts in attorney is a debt relief agency because no

VerDate 06-DEC-2000 03:21 Dec 08, 2000 Jkt 089060 PO 00000 Frm 00045 Fmt 4624 Sfmt 0634 E:\CR\FM\A07DE6.064 pfrm02 PsN: S07PT1 S11708 CONGRESSIONAL RECORD — SENATE December 7, 2000 longer acting in the capacity of an author, or can expect. The agency must also instruct cured creditor with respect to the current even if he gives his clients a copy of the the debtor in how to value assets, how to and all subsequent cases to which the auto- book. complete the list of creditors, and how to de- matic stay would otherwise apply if the Section 227. Restrictions on Debt Relief Agen- termine exempt property. Record keeping re- court finds that the filing of a bankruptcy cies quirements are imposed upon the agency to was either part of a scheme to delay, hinder, This section creates a new section 526 of keep copies of the notices required under and defraud creditors by means of transfer- the Code which proscribes certain practices this section for a period of 2 years after de- ring all or part of an interest in real prop- by debt relief agencies and provides for en- livery. It is expected that the Bankruptcy erty without the secured creditor’s consent forcement of violations of this section and Rules will provide model forms of disclosure or court approval, or involved multiple new Code sections 527 and 528. and specify further the time and manner in bankruptcy filings affecting real property. Enforcement is provided for any violations which these disclosures will be made. Once such an order is issued, it can be re- of new Code section 526, 527 or 528. Inten- Section 229. Requirements for debt relief agen- corded by anyone in the real property tional or negligent failures to comply with cies. records affecting the real property involved, any requirements of the three sections per- This section creates a new section 528 of and recording agencies must accept for re- mit the debtor to obtain restitution of any the Code that regulates agencies’ con- cording and record and index any such order fees or charges made by the agency, as well tracting and advertising. The agency is re- so that it will be notice to third parties. as actual damages and reasonable attorneys quired to execute a written contract with Such a recorded order is notice to third par- fees. The same damages are available for in- the assisted person within 5 business days ties for 2 years after recording. The court tentional or negligent disregard of the mate- (but before the petition is filed) of providing can reimpose the automatic stay in a subse- rial requirements of the Bankruptcy Code or any bankruptcy assistance, and provide the quent case after appropriate notice and hear- Rules. Any contract for bankruptcy assist- person with an executed copy. If the agency ing if good cause or changed circumstances ance that does not comply with the material does not execute a contract within that pe- are shown. requirements imposed is void, except that riod of time, it must terminate its relation- In addition, the automatic stay does not the assisted person can enforce it. State at- ship with the assisted person. apply at all to prevent acts to enforce secu- torney generals are also empowered to en- The agency must also disclose in any ad- rity interests in real property if the debtor is force the provisions of these sections, and vertisement that the services or benefits are ineligible for bankruptcy under section the United States District Court are granted with respect to bankruptcy relief. Congress 109(g) or the filing violates a court order in concurrent jurisdiction of any such enforce- is specifically concerned that debtors under- a previous case baring the debtor from re- ment proceeding. The court, the United stand the services they are being offered in- filing. States Trustee or the debtor may also seek volve bankruptcy. This section is intended to injunctive relief or civil penalties against in- Section 304. Debtor retention of personal prop- prevent agencies from describing their serv- tentional violators or those with a clear and erty security ices ambiguously so as to obscure that the consistent pattern or practice of violation of assisted person will be obtaining bankruptcy This provision is intended to prevent ‘‘ride any of these sections. The section also provides that its require- relief. A standard form of disclosure that the through’’ in the situations to which it ap- ments in new sections 527 and 528 do not ex- services are with respect to bankruptcy re- plies. A ‘‘ride through’’ is the debtor’s reten- cuse any person from complying with State lief is set forth in the section. tion of collateral and maintenance of cur- laws unless the State law is inconsistent TITLE III—DISCOURAGING BANKRUPTCY ABUSE rent payment obligations over the creditor’s objection without reaffirming. This section with those sections. Also specifically pre- Section 301. Reinforcement of the fresh start and section 305, taken together, are intended served from preemption are any practice of Present law makes nondischargeable any law requirements under State or federal law to reverse the results of such cases as Capital fee or charge imposed by a court for filing a Communications Fed. Credit Union v. Boodrow, if they conflict with the requirements of sec- case, motion, complaint or appeal or related tions 526, 527 or 528 added to the Code. It is 126 F. 3d 43 (2d Cir. 1997) cert denied, 522 U.S. costs or expenses. This section restricts the 1117 (1998). not expected that any of these new sections provision so that it applies only to matters Under this provision, an individual debtor will impose upon debt relief agencies re- filed by a prisoner. quirements that would force them to violate is not permitted to retain possession of per- applicable unauthorized practice of law re- Section 302. Discouraging bad faith repeat fil- sonal property subject to a security interest strictions. For example, providing the disclo- ings securing the purchase price of that personal sures under section 527 should not be the This section is intended to strongly limit property unless the debtor enters into a reaf- practice of law, since the content of the dis- the practice of using bankruptcy filings and firmation agreement which becomes effec- closure is set by federal law and does not in- the automatic stay that arises under section tive under section 524(c) of the Code, or re- volve giving a debtor advice. For similar rea- 362 to abuse the bankruptcy process. Debtors deems the property under section 722 of the sons, the additional information debt relief who file bankruptcy only once in a one year Code. The debtor is given 45 days after the agencies are required by section 527(c) with period will not be affected. However, upon a first meeting a creditors to take one of those respect to valuation of assets, completion of second filing within one year, the automatic two steps or to relinquish possession of the the list of creditors and exempt property stay will terminate with respect to the debt- personal property to the creditor. If the should not involve giving legal advice. How- or or the debtor’s property on the 30th day debtor fails to complete one of the steps ever, in the event applicable unauthorized after the second filing. The debtor can seek within the prescribed period, the automatic practice rules proscribe non-lawyers from to have the automatic stay continued by fil- stay is terminated with respect to the prop- providing such information, the provision ing a motion and demonstrating that the erty whether it is property of the estate or states that it is only required to the extent second filing is in good faith, but there is a not, and the creditor may take whatever ac- permitted by nonbankruptcy law. presumption that under certain cir- tion as to the property as is permitted by ap- Section 228. Disclosures cumstances the second filing is not in good plicable nonbankruptcy law. Although the faith. automatic stay ends upon the expiration of This section creates new Bankruptcy Code Upon the third or an additional filing with- the 45 day period, a creditor is free to allow section 527 which requires a debt relief agen- in a one year period, the automatic stay does a debtor to retain possession of collateral cy to deliver to an assisted person required not go into effect at all. On motion made and accept continued payments by not tak- disclosures either described or set forth in within 30 days of the third filing, the court ing any actions to collect, since this provi- the section. Within 3 business days after the may order the stay to take effect as to some sion is for the creditor’s benefit. agency first offers to provide bankruptcy as- or all creditors. The party in interest must sistance in a written, face to face, telephone, However, the trustee can bring a motion demonstrate that the third filing is in good internet or similar solicitation or contact, before the end of the 45 day period asserting faith, and there is a presumption that under the agency must provide, the agency must that the property is of consequential value certain circumstances the third filing is not provide a clear and conspicuous written no- or benefit to the estate. If the court finds in good faith. tice which states that the information the that the retention of the property will ben- Clear and convincing evidence must be pre- assisted person provides in the bankruptcy efit creditors significantly, orders appro- sented in order to rebut the presumptions proceeding must be complete, accurate and priate adequate protection of the creditor’s which arise both with respect to the second truthful, assets and liabilities must be com- interest, and orders the debtor to deliver the and third or later filings. pletely and accurately disclosed and assets property to the trustee, the court may ex- Conduct covered by this section may also must be valued and income and expenses tend application of the stay for a further rea- provide an appropriate ground to dismiss a stated after reasonable inquiry, and that in- sonable time to permit the trustee to obtain chapter 7 under section 707(b) as revised by formation provided may be audited. Before the benefit for the estate. HR 2415. the commencement of the case, the agency The section also amends section 722 to must provide the debtor with the notice re- Section 303. Curbing abusive filings make it absolutely clear that the full, com- quired under section 342(b)(1) (as amended by This provision authorizes in rem orders to plete and immediate cash payment of the re- this Act) and an additional disclosure set prevent abusive use of bankruptcy filings. demption amount to the creditor is nec- forth in the section which explains the bank- The bankruptcy court is authorized to order essary for there to be a redemption. Install- ruptcy process and relief and what the debt- that the automatic stay be lifted as to a se- ment redemptions are not permitted.

VerDate 06-DEC-2000 03:21 Dec 08, 2000 Jkt 089060 PO 00000 Frm 00046 Fmt 4624 Sfmt 0634 E:\CR\FM\A07DE6.066 pfrm02 PsN: S07PT1 December 7, 2000 CONGRESSIONAL RECORD — SENATE S11709 Section 305. Relief from the automatic stay section 502 without application of section chapter 13 to chapter 7, the debtor does not when the debtor does not complete intended 506. Thus, if the debt was incurred within 5 retain any benefits of the chapter 13 case surrender of consumer debt collateral years prior to filing and the collateral con- with respect to any secured creditor, unless Like the previous section, this section is sists of a motor vehicle acquired for the per- the full amount of the secured creditor’s also intended to prevent ‘‘ride through’’ with sonal use of the debtor, the value of the col- claim determined under nonbankruptcy law respect to any property the section covers. lateral cannot be reduced to the current fair has been paid in full, and unless a Any personal property of the estate or of the market value and therefore the amount the prebankruptcy default has been fully cured debtor securing a claim or subject to an un- plan must pay under section 1325(5)(B)(ii) prior to conversion. If a debtor converts from expired lease is covered by the section, and over the duration of the plan must be the chapter 13 to another chapter and then con- in certain instances creditors will be pro- amount of the allowed claim under section verts to chapter 7, the courts should impose tected by both this section and the previous 502 rather than the allowed secured claim similar limitations. Second, provision is made to allow a debtor section, in which case the provisions can be under section 506. A similar result applies for any other personal property if the debt was and creditor to arrange for the debtor to as- applied cumulatively. sume a personal property lease rejected or The section provides that the automatic incurred during the one year period pre- not timely assumed by a trustee. On the stay terminates if the debtor fails to timely ceding the filing. Third, terms used in section 1322(b)(2) other hand, in a chapter 11 or 13 proceeding, (1) file a statement of intention covering the if the plan does not provide for assumption which limits cramdown of certain real estate property indicating that the debtor will ei- of the lease, the lease is deemed rejected as mortgages are defined to make clear that a ther redeem the property under section 722 of of the conclusion of the hearing on confirma- debt secured by real estate which is the debt- the Code, reaffirm the debt it secures under tion and the automatic stay automatically or’s principal residence includes any 1 to 4 section 524(c) of the Code, or assume an un- terminates. expired lease under section 365(p) of the Code family structure, including incidental prop- Third, in a chapter 13 proceeding, a debt- (as amended by HR 2415), or (2) take the ac- erty, without regard to whether the struc- or’s plan must provide that the debtor will tion specified in the statement of intention ture is attached to real estate, and includes make monthly payments if there are to be (unless the statement of intention specifies condominium or cooperative units and mo- periodic payments to a personal property se- reaffirmation and the creditor refuses to re- bile or manufactures homes or trailers. Inci- cured creditor or personal property lessor re- affirm on the original contract terms). Al- dental property includes any property com- ceiving distributions under the plan, and though the automatic stay ends upon the ex- monly conveyed with a principal residence in those payments must at least be in an piration of the period for taking action, a the area where it is located. amount sufficient to provide adequate pro- creditor is free to allow a debtor to retain This provision is intended to reject those tection. This provision, however, is not in- possession of collateral and accept continued cases which have allowed cramdown of real tended to lessen any of the other protections payments by not taking any actions to col- estate mortgages on the grounds that the se- of secured creditors or lessors provided in lect, since this provision is for the creditor’s curity property is not a ‘‘principal resi- the Bankruptcy Code. benefit. dence’’ or covers property which is not real In addition, debtors are required to con- However, as with the previous section, the estate, simply because the property included tinue to make payments to creditors holding trustee can bring a motion before the end of multi-family housing, or the mortgage en- claims secured by personal property and to the period set by section 521(a)(2) asserting cumbered incidental property, or covered personal property lessors from 30 days after that the property is of consequential value less traditional forms of housing such as con- the order for relief. These payments are to be or benefit to the estate, and on similar find- dominiums, coops or mobile homes or trail- made directly to the creditor or lessor, and ings, the court may extend application of the ers. the amount of plan payments which the stay for a further reasonable time to permit Section 307. Domiciliary requirements for exemp- debtor must make can be reduced by the the trustee to obtain the benefit for the es- tions amount paid to the creditors or lessors. The tate. debtor must provide an accounting of these This provision limits the state exemptions payments to the chapter 13 trustee. In addition, this section validates certain which debtors can enjoy in bankruptcy when Section 310. Luxury goods clauses which have the effect of placing the they have moved into a state within two debtor in default by reason of the occur- years of filing. If a debtor has lived for 2 or This section provides that certain debts rence, pendency or existence of a proceeding more years in a State immediately prior to are presumed to be nondischargeable under section 523(a)(2)(A) of the Bankruptcy Code. under this title, or the insolvency of the filing, the debtor can use the exemptions al- Under section 523(a)(2)(A), a debt is non- debtor. lowed by the state where the debtor resides dischargeable when it is incurred, among Section 306. Giving secured creditors fair treat- under section 522 of the Code. If the debtor other things, by fraud. For example, fraud ment in chapter 13 has lived in a state for less than 2 years at can occur when a cardholder misrepresents This provision changes the relationship of the time of filing, then the debtor must use his or her intentions by using a credit card secured creditors and debtors in certain situ- the State exemptions of the State where the when the objective facts show that the card- ations arising in chapter 13 proceedings. debtor lived 2 years prior to filing if the holder did not or could not intend to repay. First, in order for a debtor’s plan to be debtor lived there all of the 180 days which This bill provides that if a debtor incurs confirmed, it must provide that a creditor’s precede that 2 year period. If the debtor lived debts to a single creditor aggregating for lien will continue until the earlier of pay- in more than one State during that 180 day purchases on a credit card of more than $250 ment of the underlying debt under nonbank- period, the State exemptions of the State for luxury goods or services within 90 days of ruptcy law or the grant of discharge under where the debtor lived the longest during filing for bankruptcy, such debt is presumed section 1328. Nothing in this provision is in- that period will control. to be nondischargeable. This provision recog- tended to alter other requirements for con- If a debtor has to use a particular State’s nizes that debtors may use open end credit firmation. Thus if a secured debt will not be exemptions, the law of that State also deter- to purchase goods and services necessary for fully paid before the end of the plan, this mines whether the debtor can elect to use the support of the debtor shortly before provision does not authorize a plan to pro- the federal exemptions available under sec- bankruptcy, while identifying presumptively vide that the lien terminate upon discharge. tion 522(d) of the Code. abusive behavior which warrants making the Moreover, the plan must provide that if Section 308. Residency requirement debt nondischargeable such as purchasing a the case is dismissed or converted without Any home equity acquired within the 7 significant amounts of items or services not completion of the plan, the creditor will re- years prior to filing is not exempt if: (1) such necessary for the support of the debtor (i.e. tains the lien to the full extent permitted by equity was attributable to property that the luxury goods and services). nonbankruptcy law. It is intended that any A related provision is included with regard debtor disposed of with the intent to hinder, benefits debtors obtain under a plan as to cash advances. Cash advances under open- delay, or defraud a creditor; and (2) such against their secured creditors will be lost end credit plans aggregating more than $750 property was not an exempt asset. For exam- unless the debtor fully completes the plan. within 70 days of filing for bankruptcy are ple, if a debtor disposes of cash, a non-ex- In the event a debtor’s case is discharged presumed to be nondischargeable. This lan- empt asset, by exchanging that cash for a under the hardship discharge provisions guage is carefully drafted to require the ag- residence with the intention of delaying the without completion of the plan, the credi- gregation of all cash advances within 70 days payment of a creditor, such residence would tor’s lien nonetheless survives unaffected by of filing, even if they involve more than one not be exempt from the bankruptcy estate. the bankruptcy to the extent permitted by creditor. Furthermore, there is no require- It is the intent of Congress that it should be nonbankruptcy law. ment to demonstrate that the cash advances Second, the extent to which claims secured easier to prove intent to hinder or delay were for ‘‘luxury goods’’ since such a require- by purchase money security interests in per- than to prove intent to defraud. ment would be virtually impossible to fulfill sonal property are subject to cramdown to Section 309. Protecting secured creditors in given the difficulty of accounting for cash. fair market value is limited. It is intended chapter 13 cases The behavior itself is sufficient indicia of that cramdown not apply to any collateral This provision adjusts the relationship of abuse. described in this provision during the periods debtors to lessors and secured creditors in Section 311. Automatic stay of time specified, and that the amount of the bankruptcy proceedings. This section provides that the automatic claim which must be paid under the plan be First, it amends section 348(f) to assure stay under section 362 will not apply in sev- the full amount of the claim allowed under that when a debtor converts a case from eral situations in which residential tenants

VerDate 06-DEC-2000 03:21 Dec 08, 2000 Jkt 089060 PO 00000 Frm 00047 Fmt 4624 Sfmt 0634 E:\CR\FM\A07DE6.068 pfrm02 PsN: S07PT1 S11710 CONGRESSIONAL RECORD — SENATE December 7, 2000 file for bankruptcy. First, the automatic for notice by filing a statement to that effect many bankruptcy courts have already estab- stay will not bar the continuation of an evic- with the court, the court and the debtor are lished a general practice of dismissing cases tion action pending when the debtor files for required to use such an address starting five when debtors fail to provide all required in- relief. Second, eviction proceedings com- days after receiving the address. A creditor formation within 15 days of filing, unless menced after filing are not barred by the may file a notice address with the court to good cause for additional time is shown. automatic stay if the lease has terminated be used generally by the court, parties in in- Nothing in this provision is intended to before or after filing of bankruptcy. Third, terest and the debtor to provide notice to the interfere with such requirements. However, the automatic stay also will not bar eviction creditor in all cases under chapters 7 and 13. if an individual debtor after such extensions proceedings based on endangement to prop- In the event a creditor has provided different as the court may grant, has not filed all of erty or person or the use of illegal drugs, or notice addresses by more than one of the per- the information required by section 521(a)(1) to any transfer that is not avoidable under mitted methods, a debtor may use any one of within 45 days of filing a petition, the case is sections 544 or 549 of the Code. them, except that a notice address filed in a automatically dismissed. On request of the Section 312. Extension of period between bank- particular case shall control. debtor made before 45 days after filing, the ruptcy discharges Notices which are not sent to the appro- court may grant up to 45 days additional The period of time which must elapse be- priate address as specified by the creditor time for the debtor to file schedules. Once tween bankruptcies is increased by this pro- are not effective until the notice is brought the time period provided under this section vision. When a chapter 7 proceeding is in- to the creditor’s attention. If the creditor elapses, the court must enter an order of dis- volved, the period is increased from six to has designated an entity to be responsible missal within 5 days of request. eight years. Furthermore, a chapter 13 dis- for receiving notices concerning bankruptcy Section 317. Adequate time to prepare for hear- charge cannot be granted if the debtor re- cases and has established reasonable proce- ing on confirmation of the plan ceived a discharge under any chapter of title dures so that these notices will be delivered A hearing on confirmation of a chapter 13 11 within 5 years of the order for relief in the to such entity, a notice will not be deemed plan must be held between 20 and 45 days chapter 13 case. to have been received by the creditor until it after the first meeting of creditors. If a plan Section 313. Definition of household goods has been received by the designated entity. cannot be confirmed within that period, the Sanctions for violation of the automatic Section 522(f) of title 11 permits a debtor to court should take appropriate action to dis- void a non-purchase money security interest stay under section 362 of the Code or for the miss or convert the case. in certain categories of goods if the property failure to comply with the turnover provi- Section 318. Chapter 13 plans to have a 5-year subject to the security interest is otherwise sions in sections 542 and 543 of the Code may duration in certain cases exempt in the debtor’s case. One of the cat- not be imposed if a creditor has not received If a debtor’s current monthly income is egories is ‘‘household goods’’. This section is proper notice. more than the monthly median income, the intended to clarify what this term means so Tax Return Information.—The section also debtor’s plan must be no shorter than 5 that there can be a nationwide, uniform requires debtors to provide certain tax re- years, unless the debtor proposes and con- standard for what can be included in this turn information. By no later than 7 days be- firms a plan which provides for payment in category, and so that debtors and creditors fore the date first set for the first meeting of full of all creditors within a shorter period. alike can know whether a loan is truly se- creditors, a debtor must provide the trustee, The same rules apply to modifications. without any prior request, the debtor’s tax cured or unsecured. It is expected that the Section 319. Sense of Congress regarding expan- return or transcript, or the case will be dis- additional clarity will assist debtors in ob- sion of rule 9011 of the Federal Rules of missed unless the debtor can show that the taining the lowest price available for this Bankruptcy Procedure type of secured credit. failure to file a return is due to cir- cumstances beyond the control of the debtor. It is the sense of Congress that Rule 9011 Section 314. Debt incurred to pay nondischarge- Such circumstances would include that the should be applied to the schedules and other able debts debtor did not file a return for the period re- documents filed with the court. If a claim arises from payment of a tax to quired, but not that the debtor could not find Section 320. Prompt relief from stay in indi- a governmental unit other than the United the return unless the debtor in addition vidual cases States and the tax that was paid would be showed that a significant, diligent and time- Relief from stay proceedings must be fi- nondischargeable under section 524(a)(1), ly effort had been made to obtain at least nally decided within 60 days after relief is re- then the debt incurred to pay the tax is also the transcript of the return from the Inter- quested, unless the parties agree to the con- nondischargeable. nal Revenue Service and it was not forth- trary, or the court for good cause finds it is Section 315. Notice to creditors coming. A transcript is a computer gen- necessary to do so, but then only for a speci- This section changes the requirements for erated line by line statement of debtor sup- fied period of time. Otherwise, the stay auto- providing notice to creditors and also plied information with respect to a tax re- matically expires as to the requesting cred- changes what information they must provide turn which the Internal Revenue Service will itor. in the schedules or otherwise as part of a provide any tax return filer on request. Section 321. Chapter 11 cases filed by individ- bankruptcy filing. Once such information is provided the uals Notice.—This section is intended to ensure trustee, creditors in chapter 7 and 13 cases This section changes some chapter 11 pro- that creditors receive actual, meaningful, can obtain it by request to the trustee or visions to bring the chapter more closely and timely notice of bankruptcy filings. through the procedure set forth for creditors into conformance with chapter 13 when the In order to ensure proper processing by a to obtain copies of the petition and schedules creditor, debtors will need to include the ac- debtor is an individual. from the court. It is intended that the trust- First, the property of the estate is ex- count number in any required notice to a ee and the court will make arrangements for panded from present law to include all prop- creditor with respect to any debt owed to the tax return information the debtor pro- erty and earnings acquired between the time such creditor. Furthermore, any notice re- vides to be made available to the court to of filing and the closing, dismissal or conver- quired to be given by the debtor to the cred- satisfy creditor requests. Creditors can also sion of the case. Such property is placed itor must be done so at an address specified request the tax return directly, in which under the supervision of the court and is pro- by the creditor. Creditors will be required to case the debtor must provide it directly to tected by the automatic stay. Second, what include the account number and appropriate the creditor or the case will be dismissed, may be included in a plan is expanded to per- address in the last two communications sup- subject to limitations already discussed. mit the debtor to subject future earnings and plied to the debtor within the 90–day period Debtors are also required to provide tax re- income to the plan. Third, the individual prior to filing for bankruptcy. However, if turns with respect to the period after filing, debtor’s plan must provide either that it will any legal requirement impedes the creditor’s or with respect to pre-filing periods if they pay each claim in full or that at least the ability to communicate with the debtor at are filed with the taxing authorities after debtor’s disposable income over the first 5 any point during the 90–day period prior to bankruptcy filing. The Director of the Ad- years of the plan is paid to unsecured credi- filing, the creditor’s burden will be satisfied ministrative Office of United States Courts tors. Fourth, in an individual case, the dis- if the appropriate information was included is to develop procedures for safeguarding pri- charge is not granted until completion of on its last two communications with the vacy of these returns, and to make a report payments under the plan. Provision is made debtor. For purposes of this section, the to Congress no later and one and one half for a hardship discharge. Fifth, modifica- creditor’s communications with the debtor years after enactment on the effectiveness of tions of a plan are subject to the same re- are those which deal specifically with an in- these procedures. quirements as an original plan. dividual debt. ‘‘Communications’’ do not in- Other information. Debtors are required to Section 322. Limitation clude promotional material or other commu- provide certain other information, including The state law homestead exemption is lim- nications that do not pertain specifically to ongoing income and expense information, in ited to a maximum of $100,000 for the home a debtor’s debt to the creditor. certain circumstances. Language in the Bankruptcy Code which equity acquired within the 2 years prior to states that failure to include the specified Section 316. Dismissal for failure to timely file filing. Amounts acquired within the 2-year information in a notice does not invalidate schedules or provide required information period that exceed $100,000, are not exempt the legal effect of such notice is deleted. The Fed. R. Bankr. Pro. already provide from the bankruptcy estate. Amounts of Furthermore, if a creditor in an individual that schedules must be filed within 10 days home equity acquired prior to the 2-year pe- chapter 7 or 13 case has specified an address of filing unless an extension is granted, and riod are not subject to the $100,000 cap, but

VerDate 06-DEC-2000 04:08 Dec 08, 2000 Jkt 089060 PO 00000 Frm 00048 Fmt 4624 Sfmt 0634 E:\CR\FM\A07DE6.069 pfrm02 PsN: S07PT1 December 7, 2000 CONGRESSIONAL RECORD — SENATE S11711 are subject to the relevant state law home- Section 402. Meetings of creditors and equity se- Instead, in the Learningsmith case, the stead exemption. For this purpose, equity ac- curity holders judge allowed the assignment of the lease to quired in a principal residence prior to the 2– This section gives the court the authority, a candle retailer because it offered more year period and rolled over into another for cause, not to convene a meeting of credi- money than an educational store to buy the principal residence after the 2-year period is tors if there is a prepackaged plan of reorga- lease, in contravention of Section 365(b)(3) of not subject to the $100,000 cap, but is subject nization. This would save time and expenses the Code. As a result, the lessor lost control to the relevant state law homestead exemp- in those instances where the court deter- over the nature of its very business, oper- tion. This rollover provision does not apply mines there would be little or no meaningful ating a particular mix of retail stores. If to the sale of a principal residence in one benefit to be derived from a creditors meet- other retailers file for bankruptcy in that state and the purchase of another principal ing. shopping center, the same result can occur. residence in another state. Section 403. Protection of refinance of security The bill remedies this problem by amending Section 323. Excluding employee benefit plan interest Section 365(f)(1) to make clear it operates participant contributions and other prop- This provision alters the preference provi- subject to all provisions of Section 365(b). erty from the estate sions of section 547 of the Bankruptcy Code The legal holding in the Learningsmith case, Amounts which have been withheld from with respect to when a transfer is made for and other cases like it which do not enforce wages of employees for payment as contribu- the purposes of that section. A transfer is Section 365(b), particularly 365(b)(3), are tions to retirement plans or health insurance deemed made at the time it takes effect if it overturned. Thus, this section adds language to Sec- plans, or received from employees for pay- is perfected within 30 days after it takes ef- tion 365(f)(1) for the purpose of assuring that ment over to such plans are not property of fect between the parties. Present law pro- Section 365(f) does not override any part of the estate. It is not intended that this provi- vides only a 10 day period. Section 365(b). The section provides that in sion will affect money which has been paid Section 404. Executory contracts and unexpired addition to being subject to Section 365(c), over and received by the respective plans for leases Section 365(f) is also subject to section 365(b) the purposes the withholding or contribu- HR 2415 cures some abuses in the Bank- which is to be given its full effect. tions have been made. ruptcy Code regarding executory contracts Section 324. Exclusive jurisdiction in matters in- and unexpired leases. HR 2415 amends Sec- Section 405. Creditors and equity security hold- volving bankruptcy professionals tion 365(d)(4) of the Bankruptcy Code. It im- ers committees This section gives the district court exclu- poses a firm, bright line deadline on a retail This section is intended to permit small sive jurisdiction of any property of the debt- debtor’s decision to assume or reject a lease, business interests to obtain representation or as of the commencement of the case, of absent the lessor’s consent. It permits a on creditors’ committees even though no property of the estate, and of all claims that bankruptcy trustee to assume or reject a small business would otherwise be selected involve construction of section 327 (on em- lease on a date which is the earlier of the under the standards for selecting members of ployment of professional persons) or disclo- date of confirmation of a plan or the date creditors’ committees in the present Bank- sure rules under that section. which is 120 days after the date of the order ruptcy Code. Bankruptcy judges are given for relief. A further extension of time may be discretion to increase the size of a creditor’s Section 325. United States Trustee Program fil- granted, within the 120 day period, for an ad- committee to place a small business concern ing fee increase ditional 90 days, for cause, upon motion of on the committee as a fully voting member This section changes the filing fees for the trustee or lessor. Any subsequent exten- if the court determines that the small busi- chapter 7 and 13 cases, and changes the shar- sion can only be granted by the judge upon ness creditor holds claims the aggregate ing percentages with respect to such fees. the prior written consent of the lessor: ei- amount of which is disproportionately large Section 326. Sharing of compensation ther by the lessor’s motion for an extension, in comparison to the annual gross revenue of Section 504 of the Bankruptcy Code re- or by a motion of the trustee, provided that that creditor. Congress intends that this stricts the extent to which those being paid the trustee has the prior written approval of standard be liberally applied in favor of a compensation or reimbusement in a bank- the lessor. This provision is designed to re- small business concern. For example, a claim ruptcy case may share such compensation or move the bankruptcy judges’ discretion to that was more than 5% of the net profit after reimbursement. This section creates an ex- grant extensions of the time for the retail taxes and debt service of the small business ception from those rules to permit bona fide debtor to decide whether to assume or reject concern would be disproportionately large, public service attorney referral programs op- a lease after a maximum possible period of since if the claim is not paid, it would cause erating in accordance with non-Federal law 210 days from the time of entry of the order a 5% reduction in profitability, often the dif- regulating attorney referral services to share of relief. Beyond that maximum period, ference between success and failure for a such compensation or reimbursement. there is no authority in the judge to grant small business. Section 327. Fair valuation of collateral further time unless the lessor has agreed in Section 406. Amendment to section 546 of title 11, writing to the extension. United States Code This section is intended to make clear that HR 2415 also amends Section 365(f)(1) of the Section 407. Amendment to section 330(a) of title when value is determined under title 11, it Bankruptcy Code to make sure that all of 11, United States Code shall be determined based solely upon what the provisions of Section 365(b) are adhered Section 408. Postpetition disclosure and solicita- it would cost the debtor to purchase a re- to and that Section 365(f) does not override tion placement considering the age and condition Section 365(b). Congress made clear, in Sec- of the property, without deductions for other This provision permits post-petition solici- tion 365(b)(1), that the trustee may not as- tation of a prepackaged plan of reorganiza- costs or expenses of any kind. In personal, sume an executory contract or unexpired family or household transactions, replace- tion if both the pre-petition solicitation and lease of the debtor, unless the trustee makes the post-petition solicitation comply with ment value is based upon what a retail mer- adequate assurance of future performance chant would charge for the property, consid- applicable nonbankruptcy law. However, the under the contract or lease. In Section provision only applies when the holder of a ering age and condition at the time value is 365(b)(3), Congress provided that for purposes determined. claim or interest solicited post-petition has of the Bankruptcy Code, ‘‘adequate assur- been solicited pre-petition, thus avoiding dif- Section 328. Defaults based on nonmonetary ob- ance of future performance of a lease of real ferent standards being applicable to pre- and ligations property in a shopping center includes ade- post-petition solicitations. Time is crucial in The requirements of section 365 are altered quate assurance . . . that assumption or as- a prepackaged plan of reorganization in so that certain defaults relating to nonmone- signment of such lease is subject to all the order to minimize the adverse effects of tary obligations of the debtor under an unex- provisions thereof, including (but not lim- bankruptcy on the debtor’s business and fi- pired lease of real property need not be ited to) provisions such as a radius, location, nancial affairs. When it applies, this section cured. Furthermore, such defaults are ex- use, or exclusivity provision. . . .’’ permits avoidance of the time and expense of Regrettably, some bankruptcy judges have cepted from the ordinary rules applying to going through the disclosure statement proc- not followed this Congressional mandate. impaired classes. Technical changes are also ess normally applicable to post-petition so- Under another provision of the Code, Section made to remove certain provisions relating licitations. to 365(f), a number of bankruptcy judges have allowed the assignment of a lease even Section 409. Preferences TITLE IV—GENERAL AND SMALL BUSINESS though terms of the lease are not being fol- The ordinary course of business defense to BANKRUPTCY PROVISIONS lowed. preference recovery is liberalized. As under Subtitle A—General Business Bankruptcy For example, if a shopping center’s lease current law, the debt must be incurred in the Provisions with an educational retailer requires that ordinary course. The payment, however, Section 401. Adequate protection for investors the premises shall be used solely for the pur- under the new provision must only be in the This section creates a definition for a ‘‘se- pose of conducting the retail sale of edu- ordinary course or according to ordinary curities self-regulatory organization’’ and cational items, as the lease provided in the business terms. then provides an exception to the automatic Simon Property Group v. Learningsmith case, A new preference exception is also added in stay for investigations, orders, or delisting then the lessor has a right to maintain this business cases. Aggregate transfers of less activities by such an organization involving mix of retail uses in his shopping centers, than $5,000 are exempted from preference re- the debtor. even if the retailer files for bankruptcy. covery.

VerDate 06-DEC-2000 03:21 Dec 08, 2000 Jkt 089060 PO 00000 Frm 00049 Fmt 4624 Sfmt 0634 E:\CR\FM\A07DE6.071 pfrm02 PsN: S07PT1 S11712 CONGRESSIONAL RECORD — SENATE December 7, 2000 Section 410. Venue of certain proceedings ture income over the period during which in- vides that a separate disclosure statement is Section 411. Period for filing plan under chapter stallment payments must be made before not necessary if the court determines that 11 concluding that the debtor is truly unable to the plan provides adequate information. This new provision is designed to deal with pay in installments. The mere fact that the Fourth, it permits the court to consider at a the time and expense of reorganization cases debtor is experiencing debt difficulty is not, single hearing both the adequacy of the dis- by providing the debtor’s exclusive period to in and of itself, determinative of whether a closure statement and confirmation of the file a plan of reorganization may not be ex- debtor can pay in installments. ‘‘Filing fees’’ plan. tended beyond 18 months after the order for cover any fee which must be paid in order to Section 432. Definition of small business debtor relief in the case. No change is made to cur- file a petition and commence a bankruptcy Sections 101(51C) and (51D) of the Bank- rent law that permits, for cause, either the case under title 11, but not fees for motions ruptcy Code are amended in two significant reduction or the extension of the debtor’s or adversary complaints. respects. First, the debt limit used to define initial 120-day exclusivity period, except Section 419. More complete information regard- a small business debtor is increased from $2.0 that the period may not be extended beyond ing assets of the estate million to $3.0 million. Second, a debtor with the new 18 month maximum. This section directs the Advisory Com- debts within the limit is treated as a small The new provision also provides that, if the mittee on Bankruptcy Rules of the Judicial business debtor whether or not it elects to be debtor files a plan of reorganization within Conference to propose for adoption amended treated as a small business debtor. All of the its applicable exclusivity period, parties in rules and forms directing chapter 11 debtors provisions applicable to small business debt- interest may file a reorganization plan if the to provide information on the value, oper- ors are now mandatory. There are two exclu- debtor’s plan is not accepted by each im- ations and profitability of any closely held sions from the definition: (1) cases in which paired class before 180 days after the order corporation in which the debtor has a sub- the debtor is primarily engaged in passive for relief, as such date may be extended for stantial or controlling interest. This direc- real estate investments; and (2) cases in cause up to a maximum of 20 months from tion is intended to result in changes to the which the court has certified that there is an the order for relief in the case. Bankruptcy Rules and Forms so that parties active and representative committee of unse- The new time periods are maximum peri- in interest will be able to obtain, on the cured creditors. ods that may not be extended by the court. schedules or otherwise on other disclosures Section 433. Standard form disclosure statement They are not, however, minimums. Debtors provided by the debtor full and complete in- and plan will still have to show ‘‘cause’’ to extend the formation about the value of such an inter- Section 433 directs the Advisory Com- initial 120-day and 180-day periods in section est in a closely held corporation. mittee on Bankruptcy Rules of the Judicial 1121 and any extensions granted by the court. Subtitle B—Small Business Bankruptcy Pro- Conference of the United States to propose The establishment of the new so-called ‘‘ex- visions standard forms for plans and disclosure clusivity wall’’ is not intended to change the These provisions effect reforms in chapter statements in small business cases. Under standards under section 1104 for conversion section 1125 as amended, the debtor may use or dismissal. 11 cases. They further two primary goals. First, they are designed to reduce cost and either a form approved by the court in which Section 412. Fees arising from certain ownership delay in chapter 11 cases. Second, they are the case is pending or a form approved by the interests designed to ensure that the extraordinary Rules Committee. The intent of these provi- Section 413. Creditor representation at first protections provided chapter 11 debtors are sions is to encourage experimentation in the meeting of creditors used to further , by lim- use of standard forms. Use of an approved This section permits either a creditor owed iting those protections to cases in which form does not by itself satisfy the disclosure a consumer debt or any representative of there is both a likelihood of successful reor- requirements. The court must determine that creditor to appear at and participate in ganization and in which the debtor fully that the form provides information that is the meeting of creditors in a case under complies with the applicable statutes and adequate in light of the facts of the case. chapter 7 or 13 even if the creditor or rep- rules. Sections 434 and 435. Reporting requirements resentative is not admitted to practice be- These sections achieve these goals through New section 308 of the Bankruptcy Code fore the court or before the local federal or the following means: imposes new reporting requirements on state court, notwithstanding any federal or First, the fast-track plan confirmation small business debtors, and section 435 of the state rule of practice or statutory provision rules for small business cases that were bill calls for the Advisory Committee on barring unauthorized practice of law. It is in- adopted by Congress in 1994 have been Bankruptcy Rules to promulgate uniform tended that this provision will permit non- strengthened. Second, the bill simplifies the national reporting forms. These provisions attorneys to appear at and participate in the process of drafting a plan and disclosure have three chief aims: (1) to assist small meeting of creditors and any related nego- statement to make it easier for the small business debtors in understanding and im- tiations entered into before or after the business debtor to comply with the fast- proving their businesses through the process meeting to facilitate more efficient and eco- track requirements. Third, the debtor is re- of preparing the reports; (2) to provide the nomical participation by creditors in chap- quired to provide additional information persons interested in a case with information ter 7 and 13 bankruptcy proceedings. about post-filing operations, and the Advi- about that case; and (3) to provide a data Section 414. Definition of disinterested person sory Committee on Bankruptcy Rules is di- base for further evaluation of the efficacy of rected to promulgate forms that will sim- This provision deletes the per se exclusion chapter 11 for small businesses. The standard plify such reporting. Fourth, the United of investment bankers and attorneys for in- imposed on the Rules Committee in promul- States trustee is directed to oversee the vestment bankers from being a disinterested gating uniform national forms is to effect a debtor in small business cases. Fifth, the person. Whether an investment banking firm practical balance between: (a) the needs of bankruptcy courts are directed to use case- or an attorney for an investment banker is interested parties for information; (b) ease management conferences and scheduling or- disinterested will depend on an ad hoc appli- and lack of expense in preparation; and (c) ders to reduce cost and delay. Sixth, it is cation of the definition. ‘‘the interest of all parties that the required made easier to appoint an independent trust- reports help the small business debtor to un- Section 415. Factors for compensation of profes- ee or examiner and to convert or dismiss a derstand its financial condition and plan its sional persons chapter 11 case in which the debtor is not future.’’ This section permits consideration in set- playing by the rules or there is little likeli- Section 436. Duties of trustee or debtor in pos- ting compensation of whether the profes- hood of a successful reorganization. Seventh, session in small business cases sional is board certified or otherwise has the bill protects creditors against repeat fil- New section 1116 of the Bankruptcy Code demonstrated skill. ings after a prior chapter 11 case has failed. imposes six types of clear, new duties on Section 416. Appointment of elected trustee Section 431. Flexible rules for disclosure state- small business debtors. The debtor must: (1) This section provides for procedures when ment and plan promptly file with the court the best avail- a trustee is elected, and for handling dis- Under current law, the debtor generally able financial information about the debtor’s putes over election of trustees. files a drafted-from-scratch plan and disclo- business through its most recent financial Section 417. Utility service sure statement, even if the debts and assets statements or federal income tax return; (2) involved are small. This practice is expen- attend through its responsible individual and Section 366 of the Code is amended to per- sive, and imposes an undue burden on the counsel meetings scheduled by the court or mit a utility to refuse to provide service to debtor. Section 1125 of the Bankruptcy Code the United States trustee; (3) timely file the a debtor under certain circumstances unless is amended to streamline the plan confirma- schedules and statements of affairs (with a adequate assurance payments are received. tion process in several ways for small busi- strict limit on extensions) and financial and Section 418. Bankruptcy fees ness debtors. First, it encourages the use of other reports required by law; (4) maintain This provision permits a court to waive fil- standard-form plans and disclosure state- insurance necessary to protect the public ing fees if it finds that a debtor is unable to ments. Second, it directs the court to weigh and the estate; (5) timely pay all administra- pay the fees in installments and that the the cost of providing additional information tive expense tax claims; and (6) allow the debtor’s income is under 150 percent of the against the benefit of such information in United States trustee at reasonable times official poverty line. The court is expected to determining whether a disclosure statement after reasonable notice to inspect the debt- examine carefully the debtor’s projected fu- provides adequate information. Third, it pro- or’s business premises and books and

VerDate 06-DEC-2000 03:21 Dec 08, 2000 Jkt 089060 PO 00000 Frm 00050 Fmt 4624 Sfmt 0634 E:\CR\FM\A07DE6.073 pfrm02 PsN: S07PT1 December 7, 2000 CONGRESSIONAL RECORD — SENATE S11713 records. These provisions are designed to as- a debtor in a chapter 11 case dismissed with- the court would determine whether a party sist the debtor, the courts, and the United in the previous two years; (3) confirmed a seeking a preliminary injunction is likely to States trustee in effectuating expeditious plan in a chapter 11 case within the previous prevail upon the merits. The determination administration of small business cases. They two years; or (4) succeeded to the assets of is a preliminary one regarding the likelihood are based on recommendations of the Na- an entity that was a chapter 11 debtor within of prevailing in the future, not a final deter- tional Bankruptcy Review Commission’s the previous two years. A debtor affected by mination on the merits. The hearing may small business proposal. this provision is not precluded from filing a often be a summary one. The court need not Section 437. Plan filing deadline chapter 11 petition, and is not precluded conduct a miniature confirmation hearing. from seeking protection from creditor ac- The debtor should be required to prove a Section 1121 of the Bankruptcy Code is tion. The protections of section 362(a) do not likelihood that its business is financially amended to require a small business debtor go into effect, however, unless and until the viable enough to pass the feasibility require- to file a plan within 300 days after the peti- debtor makes the required showing regarding ments of section 1129(a)(11), and that it will tion date. This deadline is based on the as- the likelihood of confirming a plan and the be able to pay in full those claims (i.e., se- sumption that the typical small business reasons a second chapter 11 case is nec- cured and priority claims) that must be paid debtor can reasonably file a plan and disclo- essary. The logic of this provision is that in in full in order to confirm a plan. sure statement within 300 days. Any request If the debtor shows that it is likely to each of the four identified circumstances for extension of this deadline is an appro- make a distribution to general unsecured there is sufficient likelihood of abuse to re- priate occasion to require the debtor to jus- creditors and that those creditors have no quire the debtor to make some showing be- tify the continuation of the broad injunctive realistic alternative to debtor’s plan, the fore receiving injunctive relief. The excep- relief the debtor received automatically debtor need not submit additional evidence tion to the automatic stay does not apply to upon the filing of the petition. The amend- that general unsecured creditors will vote to an involuntary petition that is not filed in ment does this by requiring the debtor to accept the plan in order to establish a prima collusion with the debtor or its insiders. show that it is more likely than not that the facie case. The moving party or any other debtor will confirm a plan within a reason- Section 442. Expanded grounds for dismissal, creditor may rebut debtor’s evidence. The able time if the extension is granted. conversion, or appointment of a trustee or debtor does not satisfy its burden of proof examiner Section 438. Plan confirmation deadline when unsecured creditors holding claims suf- Section 1112 of the Bankruptcy Code is ficient to block acceptance by that class This section provides that a plan shall be amended to expand the circumstances in state their intent to vote against the plan confirmed by 175 days after the order for re- which the bankruptcy court may dismiss a and the debtor cannot show a likelihood that lief, unless such time is extended under sec- chapter 11 case, convert the case to another it will be able to confirm a plan notwith- tion 1121(e)(3) of the Code. If a plan is not chapter, or appoint a chapter 11 trustee or standing such rejection. confirmed within the period and the period is examiner. The most salient characteristic of Attention from the debtor and the court to not extended, it is expected that the case chapter 11 is its most problematic—the debt- the economic viability of the debtor’s busi- will be dismissed or converted, as appro- or is protected against all creditor action ness is appropriate in all cases except liqui- priate. automatically upon filing, while remaining dating chapter 11 cases. A debtor with a busi- Section 439. Duties of the United States trustee in control of all its assets. Any non-debtor ness that is not viable should not be allowed In small business cases, there is rarely an seeking comparable injunctive relief must to remain a debtor in possession under chap- active, functioning creditor’s committee. As show a likelihood of prevailing on the merits ter 11, unless it is avowedly using chapter 11 a result, the debtor in possession is generally of the dispute and that the equities weigh in to confirm a liquidating plan promptly. Be- not subject to the creditor supervision con- favor of equitable relief. Under current law, cause the likely-to-confirm-a-plan standard turns on issues of business feasibility as templated when chapter 11 was first enacted. a chapter 11 debtor gets what is perhaps the much as on issues of law, the parties should To fill this void and to provide adequate su- broadest injunction available under Amer- be permitted to introduce evidence from ac- pervision of the debtor, section 586 of the Ju- ican law, without making any showing what- counting and other professionals concerning dicial Code is amended to enlarge the duties soever. Some courts impose a heavy burden the viability of the debtor’s business. The of the United States Trustee in small busi- on any party who, by moving for dismissal of likely-to-confirm-a-plan standard should be ness cases. One of these duties is to conduct the chapter 11 case or appointment of a applied in the same manner when it arises in an initial debtor interview promptly after trustee, seeks to deprive the debtor of that a motion to extend the deadlines provided the order for relief and before the official relief. for in the amendments to section 1121. creditors’ meeting under section 341 of the The amendment to section 1112 is intended All of the provisions of the amended sec- Bankruptcy Code. At this meeting, the to effect a significant change in the burden tion 1112 apply to all chapter 11 cases. This is United States Trustee should investigate the of proof governing motions to dismiss, con- so even though some of the listed examples debtor’s viability, ascertain what the debt- vert, or appoint a chapter 11 trustee or ex- of ‘‘cause’’ for dismissal, conversion, or ap- or’s business plan is, and explain the debtor’s aminer. First, the amendment creates an ex- pointment of a trustee or examiner resemble reporting and other compliance obligations. panded definition of ‘‘cause’’ for such relief. duties that under new sections 308 and 1116 In addition, new section 1116 of the Bank- Each type of cause listed represents a warn- apply only to small business debtors. ruptcy Code authorizes the United States ing sign that the chapter 11 case is not pro- Section 443. Study of operation of title 11, Trustee to visit the business premises of the ceeding properly (e.g., that assets of the es- United States Code, with respect to small debtor and ascertain the status of the books tate are being diminished, that the debtor is businesses and records and timeliness of filing of tax re- not complying with applicable statutes or turns. rules, or that the debtor is not moving Requires the Adminstrator of the Small The amendments to section 586 of the Judi- promptly toward confirmation of a plan of Business Administration, in conjunction cial Code also require the United States reorganization). Second, the amendment cre- with the Attorney General and the Director Trustee in cases where there are grounds for ates a new shifting burden of proof. If a cred- of the Executive Office of United States conversion or dismissal under section 1112 of itor establishes one or more of the specified Trustees and Director of the Administrative the Bankruptcy Code to ‘‘apply promptly to warning signs, the burden shifts to the debt- Office of United States Courts to conduct a study of small business bankruptcies and re- the court for relief.’’ This duty applies in all or to show: (1) that the debtor is likely to port to Congress how Federal bankruptcy chapter 11 cases, not only small business confirm a plan promptly; and (2) if the basis laws may be made more effective with regard cases. for relief is the debtor’s failure to comply to such businesses. Section 440. Scheduling conferences with an applicable statute or rule, that there is a reasonable justification for the lack of Section 444. Payment of interest Section 105(d) of the Bankruptcy Code is compliance, and that the lack of compliance This provision continues present law under amended to provide that bankruptcy judges will be cured within a reasonable time fixed section 362(d)(3) which provides that the are now required to hold status conferences by the court. If the debtor fails to meet its court shall grant relief from stay to a real and enter scheduling orders in chapter 11 burden of proof, the court must convert, dis- estate secured creditor holding security in a cases whenever that would ‘‘further the ex- miss, or appoint a chapter 11 trustee or ex- single asset real estate debtor unless not peditious and economical resolution of the aminer, whichever is in the best interest of later than 90 days after the order for relief case.’’ The change reflects a determination creditors and the estate. In substance, the the debtor has either filed a plan of reorga- that bankruptcy judges should assume re- amended section 1112 adopts a position mid- nization that has a reasonable possibility of sponsibility for reducing cost and delay in way between current chapter 11 law and tra- being confirmed or commences making in- the chapter 11 cases before them, and that ditional injunction practice. The debtor still terest payments. This provision permits the active case management by the trial judge is receives the protection of the automatic stay debtor to make those interest payments a proven means of cost and delay reduction. upon filing, but the debtor will now be re- from rents or other income the debtor holds, Section 441. Serial filers quired to prove up its entitlement to that in- and requires that the interest be at the non- This section creates a new section 362(k) of junction in a wide variety of circumstances. default interest rate under the contract with the Bankruptcy Code that provides that the The bankruptcy court should determine the creditor. filing of a chapter 11 petition does not create whether there is a reasonable possibility Section 445. Priority for administrative expenses an automatic stay if the debtor: (1) is a debt- that the debtor will confirm a plan within a This section amends section 503 of the or in another pending chapter 11 case; (2) was reasonable time in much the same manner Bankruptcy Code to provide that certain

VerDate 06-DEC-2000 03:21 Dec 08, 2000 Jkt 089060 PO 00000 Frm 00051 Fmt 4624 Sfmt 0634 E:\CR\FM\A07DE6.075 pfrm02 PsN: S07PT1 S11714 CONGRESSIONAL RECORD — SENATE December 7, 2000 amounts owed with respect to nonresidential formation that should be contained in these keeping in mind that the data covered is al- real property leases become administrative reports is self-explanatory. The reports must ready of public record. expenses. also be made publicly available for physical It is also the sense of Congress that a sin- TITLE V—MUNICIPAL BANKRUPTCY PROVISIONS inspection (at one or more central filing lo- gle bankruptcy data system should be estab- cations) and by electronic access through the lished that uses a single set of data defini- Section 501. Petition and proceedings related to Internet or other appropriate media. tions and forms to collect such data and that petition Section 603. Audit procedures data for any particular bankruptcy case be This section amends section 921(d) of the This section requires the Attorney General aggregated in such electronic record. Code to clarify that the special rules with re- TITLE VII—BANKRUPTCY TAX PROVISIONS spect to commencement of a case of an unin- to establish procedures for auditing the ac- Section 701. Treatment of certain tax liens corporated tax or special assessment district curacy and completeness of information sup- in that section control over the general rules plied by individual debtors in connection The conference agreement follows the on commencement of voluntary cases under with their bankruptcy cases under chapter 7 House bill. Section 701 makes several amend- section 301 of the Code. As a conforming and chapter 13 of the Bankruptcy Code. The ments to section 724 of the Bankruptcy Code to provide greater protection for holders of change, section 301 is amended to divide it audit must be in accordance with generally ad valorem tax liens on real or personal into two subsections, subsection (a), which accepted auditing standards and performed property of the estate. Many school boards provides that a voluntary case is commenced by independent certified public accountants obtain liens on real property to ensure col- by the filing of a petition, and subsection (b), or independent licensed public accountants. lection of unpaid ad valorem taxes. Often, which provides that the commencement of a However, the Attorney General is given dis- governments are unable to collect despite case is also the order for relief. Section 301 cretion to develop alternative auditing the presence of a lien because, under current as amended will continue to govern the vol- standards not later than two years after the law, these liens may be subordinated to cer- untary cases which it now covers, except date of enactment of H.R. 2415. Should the tain claims against and expenses of the those covered by section 921(d). Attorney General develop alternative audit- ing standards, such standards are expected bankruptcy estate. The conference agree- Section 502. Applicability of other sections to to have integrity and reliability comparable ment would seek to protect the holders of chapter 9 to generally accepted auditing standards. It these tax liens from, among other things, Section 901(a) of the Code, which lists the is intended that the Attorney General in de- erosions of their claims’ status by expenses sections of title 11 which apply to chapter 9 veloping auditing standards, and any others incurred under chapter 11 of the Bankruptcy cases, is amended to include sections 555, 556, who set procedures or practices to be used in Code. 559, 560, 561, and 562. These sections provide the audits or supervise them, will in doing so Under the conference agreement, subordi- an exception to the stay of proceedings to consult with those units in the Department nation of ad valorem tax liens is still pos- allow the liquidation of various types of se- of Justice which enforce against bankruptcy sible under section 724(b). However, the pur- curities contracts. The amendment is nec- fraud and bankruptcy crimes, including the poses are limited to paying for chapter 7 ad- essary to avoid a stay violation or other bankruptcy fraud task force in the Attorney ministrative expenses and priority claims for complications when certain executory con- General’s office and bankruptcy fraud and postpetition ‘‘wages, salaries, and commis- tracts, municipal bonds, for instance, come crime units in the United States Attorneys’ sions’’ and claims for ‘‘contributions to an due and must be redeemed. offices. employee benefit plan.’’ Thus, subordination for the purpose of paying chapter 11 adminis- TITLE VI—BANKRUPTCY DATA The audits are to be performed on ran- trative expenses is not permitted. Also, sec- Section 601. Improved bankruptcy statistics domly selected cases and should include at least 1 out of every 250 cases in each Federal tion 701 requires the chapter 7 trustee to uti- It has been obvious for some time that de- judicial district. Audits are required for lize all other estate assets before the trustee spite the scope and frequency of bankruptcy schedules of income and expenses which re- could resort to section 724 of the code to sub- relief, organized statistics with respect to flect greater than average variances from ordinate liens on personal and real property what occurs during and as a result of the the statistical norm of the district in which of the estate. bankruptcy case are not available. It is the schedules were filed. The aggregate re- In addition, the conference agreement pre- strongly felt that there should be a con- sults of the audits is to be made public and vents a bankruptcy court from determining certed effort by the federal government to is required to include the percentage of the amount or legality of ad valorem tax ob- collect, maintain and disseminate broad in- cases, by district, in which a material ligations if the applicable period for con- formation about the bankruptcy system and misstatement of income, expenditures or as- testing or redetermining the amount of the how it operates. Such information should in- sets is reported. claim under nonbankruptcy law has expired. clude how much debt is discharged in dif- A report of each audit must be filed with This addresses those instances where debtors ferent types of bankruptcy cases, as well as the court and transmitted to the United or trustees use section 505 of the Bankruptcy other information relative to assessing how States trustee. Each report must clearly and Code as a means to have bankruptcy courts well the bankruptcy system is serving both conspicuously specify any material set aside these types of taxes, to the det- debtors in need and the wider group of citi- misstatement of income, expenditures or as- riment of the local communities that depend zens who pay in higher credit prices for the sets. In any case where a material on them for revenue. discharged debt. misstatement of income, expenditures or as- Section 702. Treatment of fuel tax claims This section creates a standardized and sets has been reported, the clerk of the bank- The conference agreement follows the Sen- centralized method for collecting relevant ruptcy court must give all creditors in the ate bill. The agreement simplifies the filing bankruptcy statistics for cases involving pri- case notice of the misstatement(s). Where of claims by states against truckers for un- marily consumer debts filed under chapters appropriate, the matter could be referred to paid fuel taxes by modifying section 501 of 7, 11, and 13. The statistics will be collected the U.S. Attorney for possible criminal pros- the Bankruptcy Code. Rather than requiring by the clerk in each district. The Director of ecution. all states to file a claim for unpaid fuel taxes the Administrative Office of the United Furthermore, the Bankruptcy Code is (as is the case under current law), the des- States Courts will compile the statistics, amended to make it a duty of the debtor to ignated ‘‘base jurisdiction’’ under the Inter- producing a centralized data source. The Di- supply certain information to an auditor. national Fuel Tax Agreement would file a rector will make the statistics available to This section also adds, as grounds for revoca- claim on behalf of all states. This claim the public. Furthermore, by October 31, 2002, tion of a chapter 7 debtor’s discharge, a would be treated as a single claim. the Director will make annual reports to chapter 7 debtor’s failure to satisfactorily Section 703. Notice of request for a determina- Congress which include the statistics as well explain a material misstatement discovered tion of taxes as an analysis of the information. as the result of an audit and the failure to The conference agreement follows the Sen- The Director’s compilation of statistics make available all necessary documents or will be comprehensive. The requirements of ate bill. Under current law, debtors may re- property belonging to the debtor that are re- quest that the government determine admin- the compilation, as outlined in the new sec- quested in connection with such audit. tion 159(c), are self-explanatory. It is in- istrative tax liabilities under section 505(b) Section 604. Sense of Congress regarding avail- of the Bankruptcy Code in order to receive a tended that the information required under ability of bankruptcy data Section 159(c)(3)(H) should also include the discharge of those liabilities. There are no This section expresses the sense of the cases involving sanctions imposed on debt- requirements as to the content or form of Congress that it is a national policy of the or’s counsel under Section 707(b) of the such notice to the government. United States that all data collected by the The conference agreement requires that Bankruptcy Code. bankruptcy clerks in electronic form (to the each bankruptcy court clerk maintain a list- Section 602. Uniform rules for the collection of extent such data related to public records as ing under which government entities may bankruptcy data defined in Section 107 of the Bankruptcy designate their addresses for service of debt- This provision complements Section 601 by Code) should be made available to the public or requests. If a governmental entity does requiring the Attorney General to issue rules in a usable electronic form in bulk, subject not designate an address and provide that requiring the establishment of uniform to appropriate privacy concerns and safe- address to the bankruptcy court clerk, any forms for final reports filed by bankruptcy guards as determined by the Judicial Con- request made under section 505(b) of the trustees and monthly operating reports filed ference of the United States. Those privacy Bankruptcy Code may be served at the ad- by chapter 11 debtors in possession. The in- concerns and safeguards should be developed dress of the appropriate taxing authority of

VerDate 06-DEC-2000 03:21 Dec 08, 2000 Jkt 089060 PO 00000 Frm 00052 Fmt 4624 Sfmt 0634 E:\CR\FM\A07DE6.076 pfrm02 PsN: S07PT1 December 7, 2000 CONGRESSIONAL RECORD — SENATE S11715 that governmental unit. The conference narrower discharge. Under chapter 7, taxes the conference agreement limits the discre- agreement also provides that governmental from a return due within 3 years of the peti- tion of the debtor and the trustee regarding entities may describe where further informa- tion date, taxes assessed within 240 days, or treatment of pre-petition tax claims in chap- tion concerning additional requirements for taxes related to an unfiled return or false re- ter 11 cases. Under current law, non-tax filing such requests may be found. turn are not dischargeable. Chapter 13, on claims are paid out over several years in Section 704. Rate of interest on tax claims the other hand, permits what is known as a equal installments. Tax claims must be paid ‘‘superdischarge,’’ which allows courts to The conference agreement follows the Sen- out over six years from the date of assess- discharge these same tax debts. ment and typically include interest-only ate bill with a modification and a technical The conference agreement repeals the correction. Under current law, there is no payments in the early years and a balloon superdischarge for fraudulent and non-filed payment at the end. uniform rate of interest for payment of tax taxes by amending section 1328(a)(2) of the claims. Bankruptcy courts have used varying The conference agreement modifies section Bankruptcy Code. Fraudulent and non-filer 1129(a)(9) of the Bankruptcy Code by reduc- standards to determine the applicable rate. claims would not receive any special treat- The conference agreement adds section 511 to ing the maximum period of tax payments ment. The conference agreement also repeals from six years from the date of assessment the Bankruptcy Code to simplify the interest the superdischarge for a tax required to be rate calculation. The agreement provides to five years from the entry of the order for collected or withheld and for which the debt- relief and by specifying that payment should that for all tax claims (federal, state, and or is liable in whatever capacity, such as an be made in ‘‘regular installment payments.’’ local), including administrative expense employee’s share of federal payroll and trust The conference agreement modifies the taxes, the interest rate shall be determined fund taxes. However, the conference agree- Senate bill to delete language regarding the in accordance with applicable non-bank- ment leaves the superdischarge in place for interest rate applicable to installment pay- ruptcy law and as of the calendar month in other tax claims. Thus, consistent with the ments in chapter 11 cases. which the plan is confirmed. IRS Restructuring and Reform Act of 1998, The conference agreement modifies the taxpayers who have complied with a reorga- Section 711. Avoidance of statutory liens prohib- Senate bill to clarify that the applicable nization plan—which includes paying taxes— ited non-bankruptcy law interest rate would would continue to receive the superdis- The conference agreement follows the Sen- apply to administrative expense taxes, as charge. ate bill. Under the Bankruptcy Code, trust- well as to all other tax claims. Section 708. No discharge of fraudulent taxes in ees may act to keep assets in the bankruptcy Section 705. Priority of tax claims chapter 11 estate even though a statutory lien exists The conference agreement follows the Sen- The conference agreement follows the Sen- against the asset. The Internal Revenue Code ate bill with a modification and a technical ate bill with a modification. Under current gives special protection to certain pur- correction. Under current law, in section law, the confirmation of a plan of reorga- chasers of securities and motor vehicles not- 507(a)(8) of the Bankruptcy Code, tax claims nization under chapter 11 discharges the withstanding the existence of a filed tax lien. are entitled to a priority if they arise within debtor from all liability. The conference The conference agreement amends section certain time periods. In the case of income agreement would except, in the case of cor- 545(2) of the Bankruptcy Code to prevent taxes, a priority arises, among other times, porations, fraudulent taxes, willfully evaded trustees from using the tax code provision to if the tax return was due within 3 years of taxes, and debts for money or property ob- displace an otherwise valid lien. In other the filing of the bankruptcy petition or if the tained in a false or fraudulent manner from words, trustees could not keep securities or assessment of the tax was made within 240 the broad chapter 11 discharge. Congress be- motor vehicles in the bankruptcy estate if days of the filing of the petition. The 240-day lieves the Bankruptcy Code should not en- they were subject to a lien under the tax period is tolled during the time that an offer courage fraud by allowing the discharge of code provisions. in compromise is pending (plus 30 days). debts incurred through fraud or false rep- The conference agreement prevents the Though the statute is silent, most courts resentation simply because those debts were avoidance of unperfected liens against a have also held that the 3-year and 240-day incurred in a corporate setting. bona fide purchaser, if the purchaser quali- time periods are tolled during the pendency The conference agreement amends the dis- fies as such under section 6323 of the Internal of a previous bankruptcy case. charge provisions of chapter 11 (Bankruptcy Revenue Code or a similar provision of either The conference agreement codifies the rule Code section 1141(d)) to prevent the discharge state or local law. tolling priority periods during a previous of tax or customs duty tax claims resulting Section 712. Payment of taxes in the conduct of from a corporate debtor’s fraudulent tax re- bankruptcy and adds an additional 90 days. business turns. It also prevents the discharge of any The agreement also includes tolling provi- The conference agreement follows the Sen- sions to adjust for the collection due process unpaid tax obligations that resulted from a corporate chapter 11 debtor’s willful evasion ate bill. Bankruptcy laws and statutes-at- rights provided by the IRS Restructuring large generally require trustees and receiv- and Reform Act of 1998. During any period in of applicable tax laws. Further, the con- ference agreement modifies the Senate bill ers to pay business taxes in the ordinary which the government is prohibited from col- to prevent the discharge of any debt for course. Other kinds of administrative ex- lecting a tax as a result of a request by the money, property, services, or credit, ob- penses can be paid only upon motion after a debtor for a hearing and an appeal of any tained by a corporate debtor in a false or court order. Some bankruptcy courts have collection action taken against the debtor, fraudulent manner (applying section 523(a)(2) not permitted debtors to pay post-petition the priority is tolled, plus 90 days. Also, dur- of the Bankruptcy Code to corporate debt- tax liabilities (those accruing after filing a ing any time in which there was a stay of ors). bankruptcy petition) prior to the approval of proceedings in a prior bankruptcy case or a plan for the bankruptcy estate. The con- collection of an income tax was precluded by Section 709. Stay of tax proceedings limited to pre-petition taxes ference agreement amends section 960 of a confirmed bankruptcy plan, the priority is title 28 of the U.S. Code to provide clear au- The conference agreement modifies the tolled, plus 90 days. The conference agree- thority to pay taxes in the ordinary course Senate and House bills. Under current law, ment modifies the Senate bill to apply the of business. The agreement also amends sec- filing a petition for relief under the Bank- priority tolling periods to non-income taxes tion 503(b) of the Bankruptcy Code to require ruptcy Code triggers an automatic stay as well. payment of ad valorem taxes as an allowed which precludes the commencement or con- Section 706. Priority property taxes incurred tinuation of a case in U.S. tax court. This administrative expense tax and eliminates The conference agreement follows the Sen- rule was arguably extended in Halpern v. any requirement to file a request for pay- ate bill, replacing the word ‘‘assessed’’ with Commissioner, 96 T.C. 895 (1991), in which the ment of any administrative expense taxes. ‘‘incurred’’ in the case of real property taxes. tax court ruled that it did not have jurisdic- Section 713. Tardily filed priority tax claims Under current law, many provisions of the tion to hear a case involving a post-petition The conference agreement follows the Sen- Bankruptcy Code are keyed to the word ‘‘as- year. The conferees believe that Halpern ate bill. Under current law, in chapter 7 of sessed.’’ While this word has an accepted went too far. the Bankruptcy Code, tax claims timely filed meaning in the federal system, it is not used In order to address this issue, the con- are entitled to their full statutory priority. in many state and local statutes and has cre- ference agreement specifies that the auto- Late-filed tax claims lose their full statu- ated some confusion. Replacing the word matic stay is limited to an individual debt- tory priority, but are entitled to distribution ‘‘assessed’’ with ‘‘incurred’’ in the case of or’s prepetition taxes (taxes incurred before as unsecured claims provided they are filed real property taxes in section 507(a)(8)(B) of entering bankruptcy). Thus, the automatic before the trustee commences distribution of the Bankruptcy Code eliminates this prob- stay would not apply to cases involving an the estate. The problem is that a claim filed lem. individual debtor’s postpetition taxes. The just before distribution can significantly Section 707. No discharge of fraudulent taxes in agreement allows the bankruptcy court to delay the process of distribution due to certi- chapter 13 determine whether the stay will apply to the fying the validity of the claim and deter- The conference agreement follows the Sen- postpetition tax liabilities of a corporate mining its proper priority. ate bill. Under current law, a debtor’s ability debtor. The conference agreement modifies section to discharge his tax debts varies depending Section 710. Periodic payment of taxes in chap- 726(a)(1) of the Bankruptcy Code to require a on whether the debtor is in chapter 7 (liq- ter 11 cases tax claim to be filed either before the trustee uidation) or chapter 13 (income earner plans The conference agreement follows the Sen- commences distribution or 10 days following of repayment). Chapter 7 contains a much ate bill with a modification. Section 710 of the mailing to creditors of the summary of

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the trustee’s final report, whichever is ear- 11 (business bankruptcy) plan may be sub- TITLE VIII—ANCILLARY AND OTHER CROSS- lier, in order for the claim to be entitled to mitted to creditors and stockholders for a BORDER CASES distribution as an unsecured claim. vote, the proponent of the plan must file a This Title adds a new chapter to the Bank- Section 714. Income tax returns prepared by tax disclosure statement in which holders of ruptcy Code (the ‘‘Code’’) for transactional authorities claims and interests are given ‘‘adequate in- bankruptcy cases. This incorporates the The conference agreement follows the Sen- formation’’ on which they can make a deci- Model Law on Cross-Border Insolvency to en- ate bill. In general, taxpayers cannot be dis- sion as to whether or not to vote in favor of courage cooperation between the United charged from taxes unless a return was filed. the plan. A chapter 11 plan’s tax con- States and foreign countries with respect to Courts have struggled with what constitutes sequences represent an important aspect of transnational insolvency cases. Title IX is filing a return. The tax code authorizes the that plan. intended to provide greater legal certainty Secretary of Treasury to file a return on be- The conference agreement amends section for trade and investment as well as to pro- half of a taxpayer if either (1) the taxpayer 1125(a) of the Bankruptcy Code to require vide for the fair and efficient administration provides information sufficient to complete that a chapter 11 disclosure statement dis- of cross-border insolvencies, which protects a return, or (2) the Secretary can obtain suf- cuss the potential material Federal tax con- the interests of creditors and other inter- ficient information through testimony or sequences of the plan to the debtor and to ested parties, including the debtor. In addi- otherwise to complete a return. holders of claims and interests in the case. tion, it serves to protect and maximize the The conference agreement modifies section Section 718. Setoff of tax refunds value of the debtor’s assets. 523(a) of the Bankruptcy Code to provide The conference agreement follows the Sen- Section 801. Amendment to add Chapter 15 to that a return filed on behalf of a taxpayer ate bill. Under current law, a petition for title 11, United States Code who has provided information sufficient to bankruptcy triggers an automatic stay of Each of the sections of new chapter 15 is complete a return constitutes filing a return the setoff of any debt owing to the debtor discussed in order. (and the debt can be discharged) but that a that arose before the commencement of the return filed on behalf of a taxpayer based on case against any debt owed by the debtor. Section 1501. Purpose and scope of application information the Secretary obtains through This automatic stay precludes setoff of a The chapter introduces into the Bank- testimony or otherwise does not constitute pre-petition tax refund against a pre-petition ruptcy Code the Model Law on Cross-Border filing a return (and the debt cannot be dis- tax obligation unless the bankruptcy court Insolvency (‘‘Model Law’’), which was pro- charged). has approved the setoff. Because the interest mulgated by the United Nations Commission Section 715. Discharge of the estate’s liability and penalties which may continue to accrue on International Trade Law (‘‘UNCITRAL’’) for unpaid taxes are often nondischargeable, the inability to at its Thirtieth Session, May 12–30, 1997. The conference agreement follows the Sen- promptly apply income tax refunds against Cases brought under this chapter are in- ate bill. Under the Bankruptcy Code, a debt- tax claims can cause individual debtors tended to be ancillary to cases brought in a or may request a prompt audit to determine undue hardship. debtor’s home country, unless a full United post-petition tax liabilities. If the govern- The conference agreement amends section States bankruptcy case is brought under an- ment does not make a determination or re- 362(b) of the Bankruptcy Code to allow the other chapter. Even if a full case is brought, quest extension of time to audit, then the setoff to occur unless setoff would not be the court may decide under section 305 to debtor’s determination of taxes will be final. permitted under applicable tax law because stay or dismiss the United States case under Several court cases have held that while this of a pending action to determine the amount the chapter and limit the United States’ role protects the debtor and the trustee, it does or legality of the tax liability. In that cir- to ancillary case under this chapter. If the not necessarily protect the estate. cumstance, the governmental authority may full case is not dismissed, it will be subject The conference agreement modifies section hold the refund pending resolution of the ac- to the provisions of this chapter governing 505(b) of the Bankruptcy Code to clarify that tion. cooperation, communication and coordina- the estate is also protected if the govern- Section 719. Special provisions related to the tion with foreign courts and representatives. ment does not request an audit of the debt- treatment of State and local taxes In any case, an order granting recognition is required as a prerequisite to use the sections or’s tax returns. Therefore, if the govern- The conference agreement follows the Sen- ment does not make a determination of the 301 and 303 by a foreign representative. ate bill, conforming state and local income Section 1501 combines the Preamble to the debtor’s post-petition tax liabilities or re- tax administrative issues to the Internal quest extension of time to audit, then the es- Model Law (subsection (1)) with its article 1 Revenue Code. For example, under federal (subsections (2) and (3)). It largely follows tate’s liability for unpaid taxes will be dis- law, a bankruptcy petitioner filing on March charged. the language of the Model Law and fills in 5 has two tax years—January 1 to March 4, blanks with appropriate United States ref- Section 716. Requirement to file tax returns to and March 5 to December 31. However, under erences. However, it adds in subsection (3) an confirm chapter 13 plans the Bankruptcy Code, state and local tax exclusion of certain natural persons who The conference agreement follows the Sen- years are divided differently—January 1 to may be considered ordinary consumers. Al- ate bill with a modification. Under current March 5, and March 6 to December 31. Sec- though the consumer exclusion is not in the law, a debtor may be entitled to the benefits tion 719 of the conference agreement requires test of the Model Law, the discussions at of chapter 13 (reorganization) even if he is the states to follow the federal convention. UNCITRAL recognized that some such exclu- delinquent in his tax returns. Without access The conference agreement conforms state sion would be necessary in countries like the to tax return information, creditors cannot and local tax administration to the Internal United States where there are special provi- obtain full information about the debtor’s Revenue Code in the following areas: divi- sions for consumer debtors in the insolvency status. Most districts have established proce- sion of tax liabilities and responsibilities be- laws. dures requiring the filing of returns prior to tween the estate and the debtor, tax con- The reference to section 109(e) essentially the initial meeting of creditors. sequences with respect to partnerships and defines ‘‘consumer debtors’’ for purposes of The conference agreement amends section transfers of property, and the taxable period the exclusion by incorporating the debt limi- 1325(a) of the Bankruptcy Code (and adds sec- of a debtor. The conference agreement does tations of that section, but not its require- tion 1308 to the Code) to require a debtor to not conform state and local tax rates to fed- ment or regular income. The exclusion adds be current on the filing of tax returns for the eral tax rates. a requirement that the debtor or debtor cou- four years prior to the filing of a petition in Section 720. Dismissal for failure to timely file ple be citizens or long-term legal residents of order to have a chapter 13 plan confirmed. If tax returns the United States. This ensures that resi- the returns have not been filed by the date The conference agreement follows the Sen- dents of other countries will not be able to on which the meeting of creditors is first ate bill. Under existing law, there is no de- manipulate this exclusion to avoid recogni- scheduled, the trustee may hold open that finitive rule concerning whether a bank- tion of foreign proceedings in their home meeting for a reasonable period of time to ruptcy court should dismiss a bankruptcy countries or elsewhere. allow the debtor to file any unfiled returns. case if the debtor fails to file tax returns The first exclusion in subsection (c) con- The additional period of time may not ex- after entering bankruptcy. The conferees be- stitutes, for the United States, the exclusion tend beyond 120 days after the date of the lieve that it is good policy to require that provided in article 1, subsection (2), of the meeting of the creditors or beyond the date these returns be filed. Model Law. Foreign representatives of for- on which the return is due under the last Thus, the conference agreement amends eign proceedings which are excluded from automatic extension of time for filing. How- section 521 of the Bankruptcy Code to allow the scope of chapter 15 may seek relief from ever, the debtor may also obtain an exten- a taxing authority to request that the court courts other than the bankruptcy court sion of time to file from the court if the dismiss or convert a bankruptcy case if the since the limitations of section 1509(b) (2) debtor demonstrates by a preponderance of debtor fails to file a post-petition tax return and (3) would not apply to them. the evidence that the failure to file was at- or obtain an extension on such a return. The The reference to section 109(b) interpolates tributable to circumstances beyond the debt- conference agreement provides that the into chapter 15 the entities governed by spe- or’s control. debtor would have 90 days from the time of cialized insolvency regimes under United Section 717. Standards for tax disclosure the request to file the return or to obtain an States law which are currently excluded The conference agreement follows the Sen- extension, or the court would be required to from liquidation proceedings under title 11. ate bill. Under current law, before a chapter dismiss or convert the case. Section 1501 contains an exception to the

VerDate 06-DEC-2000 04:22 Dec 08, 2000 Jkt 089060 PO 00000 Frm 00054 Fmt 4624 Sfmt 0634 E:\CR\FM\A07DE6.080 pfrm02 PsN: S07PT1 December 7, 2000 CONGRESSIONAL RECORD — SENATE S11717 section 109(b) exclusions so that foreign pro- part of the core jurisdiction of bankruptcy operation begun under section 304, but is not ceedings of foreign insurance companies are courts when referred to them by the district to be the basis for denying of limiting relief eligible for recognition and relief under court that will rule on the petition is deter- otherwise available under this chapter. The chapter 15 as they had been under section mined pursuant to a revised section 1410 of additional assistance is made conditional 304. However, section 1501(d) has the effect of title 28 governing venue and transfer. upon the court’s consideration of the factors leaving to State regulation any deposit, es- The title ‘‘ancillary’’ in this section and in set forth in the current subsection 304(c) in a crow, trust fund or the like posted by a for- the title of this chapter emphasizes the context of a reasonable balancing of inter- eign insurer under State law. United States’ policy in favor of a general ests following current case law. The ref- Section 1502. Definitions rule that countries other than the home erences to ‘‘estate’’ in section 304 have been ‘‘Debtor’’ is given a special definition for country of the debtor, where a main pro- changed to refer to the debtor’s property, be- this chapter. That definition does not come ceeding would be brought, should usually act cause many foreign systems do not create an from the Model Law but is necessary to through ancillary proceedings, in preference estate in insolvency proceedings or the sort eliminate the need to refer repeatedly to to a system of full bankruptcies (often called recognized under this chapter. Although the ‘‘the same debtor as in the foreign pro- ‘‘secondary’’ proceedings) in each state case law, construing section 304 makes it ceeding.’’ With certain exceptions, the term where assets are found. Under the Model clear that comity is the central consider- ‘‘person’’ used in the Model Law has been re- Law, notwithstanding the recognition of a ation, its physical placement as one of six place with ‘‘entity,’’ which is defined broadly foreign main proceeding, full bankruptcy factors in subsection 304 is misleading, since in section 101(15) to include natural persons cases are permitted in each country (see sec- those factors are essentially elements of the and various legal entities, thus matching the tions 1528 and 1529). In the United States, the grounds for granting comity. Therefore, in intended breadth of the term ‘‘person’’ in the court will have the power to suspend or dis- subsection (2) of this section, comity is Model Law. The exceptions include contexts miss such cases where appropriate under sec- raised to the introductory language to make in which a natural person is intended and tion 305. it clear that it is the central concept to be those in which the Model Law language al- Section 1505. Authorization to act in a foreign addressed. ready refers to both persons and entities country Section 1508. Interpretation other than persons. The definition of ‘‘trust- The language in this section varies from This provision follows conceptually Model ee’’ for this chapter ensures that debtors in the wording of articles 5 of the Model Law as law article 8 and is a standard one in recent possession and debtors, as well as trustees, necessary to comport with United States law UNCITRAL treaties and model laws. Lan- are included in the term. and terminology. The slight alteration to guage changes were made to express the con- The definition of ‘‘within the territorial ju- the language in the last sentence is meant to cepts more clearly in terminology which ac- risdiction of the United States’’ in sub- emphasize that the identification of the cords with that of the bankruptcy laws of section (7) is not taken from the Model Law. trustee or other entity entitled to act is the United States. It has been added because the United States, under United States law, while the scope of Interpretation of this chapter on a uniform like some other countries, assets insolvency actions that may be taken by the trustee or basis will be aided by reference to the Guide jurisdiction over property outside its terri- other entity under foreign law is limited by and the Reports cited therein, which explain torial limits under appropriate cir- the foreign law. the reasons for the terms used and often cite cumstances. Thus a limiting phrase is useful The related amendment to section 586(a)(3) their origins as well. Uniform interpretation where the Model Law and this chapter intend of title 28 makes acting pursuant to author- will also be aided by reference to CLOUT, the to refer only to property within the territory ization under this section an additional UNCITRAL Case Law On Uniform Texts, of the enacting state. In addition, a defini- power of a trustee or debtor in possession. which is a service of UNITRAL. CLOUT re- tion of ‘‘recognition’’ supplements the Model While the Model Law automatically au- ceives reports from national reporters all Law definitions and merely simplifies draft- thorizes an administrator to act abroad, this over the world concerning court decisions in- ing of various other sections of chapter 15. section requires all trustees and debtors to terpreting treaties, model laws, and other Two key definitions of ‘‘foreign pro- obtain court approval before acting abroad. text promulgated by UNCITRAL. Not only ceeding’’ and ‘‘foreign representative,’’ are That requirement is a change from the lan- are these sources persuasive, but they are found in sections 101(23) and (24), which have guage of the Model Law, but one that is important to the crucial goal of uniformity been amended consistent with Model Law ar- purely internal to United States law. of interpretation. To the extent that the ticle 2. Its main purpose is to ensure that the United States courts rely on these sources, The definitions ‘‘establishment,’’ ‘‘foreign court has knowledge and control of possibly their decisions will more likely be regarded court,’’ ‘‘foreign main proceeding,’’ and ‘‘for- expensive activities, but it will have the col- as persuasive elsewhere. eign non-main proceeding,’’ have been taken lateral benefit or providing further assur- Section 1509. Right of direct access from Model Law article 2, with only minor ance to foreign courts that the United States This section implements the purpose of ar- language variations necessary to comport debtor or representative is under judicial au- ticle 9 of the Model Law, enabling a foreign with United States terminology. Addition- thority and supervision. This requirement representative to commence a case under ally, defined terms have been placed in al- means that the first-day orders in reorga- this chapter by filing a petition directly with phabetical order. In order to be recognized as a foreign non- nization cases should include authorization the court without preliminary formalities main proceeding, the debtor must at least to act under this section where appropriate. that may delay or prevent relief. It varies have an establishment in that foreign coun- This section also contemplates the des- the language to fit United States procedural try. ignation of an examiner or other natural per- requirements and it imposes recognition of son to act for the estate in one or more for- the foreign proceeding as a condition to fur- Section 1503. International obligations of the eign countries where appropriate. One in- ther rights and duties of the foreign rep- United States stance might be a case in which the des- resentative. If recognition is granted, the This section is taken exactly from the ignated person had a special expertise rel- foreign representative will have full capacity Model Law with only minor adaptations of evant to that assignment. Another might be under U.S. law (subsection (b)(1)), may re- terminology. where the foreign court would be more com- quest such relief in a state or federal court Although this sections makes an inter- fortable with a designated person than with other than the bankruptcy court (subsection national obligation prevail over chapter 15, an entity like a debtor in possession. Either (b)(2)) and may be granted comity or co- the courts will attempt to read the Model are to be recognized under the Model Law. operation by such non-bankruptcy court Law and the international obligation so as Section 1506. Public policy exception (subsection (b)(3) and (c)). Subsections (b)(2), not to conflict, especially if the inter- (b)(3) and (c) make it clear that chapter 15 is This provision follows the Model Law arti- national obligation addresses a subject mat- intended to be the exclusive door to ancil- cle 5 exactly, is standard in UNCITRAL texts ter less directly related than the Model Law lary assistance to foreign proceedings. The and has been narrowly interpreted on a con- to a case before the court. goal is to concentrate control of these ques- sistent basis in courts around the world. The Section 1504. Commencement of ancillary case tions in one court. That goal is important in word ‘‘manifestly’’ in international usage re- a federal system like that of the United Article 4 of the Model Law is designed for stricts the public policy exemption to the States with many different courts, state and designation of the competent court which most fundamental policies of the United federal, that may have pending actions in- will exercise jurisdiction under the Model States. Law. In United States law, section 1334(a) of volving the debtor or the debtor’s property. title 28 gives exclusive jurisdiction to the Section 1507. Additional assistance This section, therefore, completes for the district courts in a ‘‘case’’ under this title. Subsection (1) follows the language of United States the work of article 4 of the Therefore, since the competent court has Model law article 7. Model Law (‘‘competent court’’) as well as been determined in title 28, this section in- Subsection (2) makes the authority for ad- article 9. stead provides that a petition for recognition ditional relief (beyond that permitted under Although a petition under current section commences a ‘‘case’’, an approach that also sections 1519–1521, below) subject to the con- 304 is the proper method for achieving def- invokes a number of other useful procedural ditions for relief heretofore specified in erence by a United States court to a foreign provisions. United States law under section 304, which is insolvency under present law, some cases in In addition, a new subsection (P) to section repealed. This section is intended to permit state and federal courts under current law 157 of title 28 makes cases under this chapter the further development of international co- have granted comity suspension or dismissal

VerDate 06-DEC-2000 03:36 Dec 08, 2000 Jkt 089060 PO 00000 Frm 00055 Fmt 4624 Sfmt 0634 E:\CR\FM\A07DE6.082 pfrm02 PsN: S07PT1 S11718 CONGRESSIONAL RECORD — SENATE December 7, 2000 of cases involving foreign proceedings with- tors, except as provided in subsection (b) and each element is on the foreign representa- out requiring a section 304 petition or even section 1514. It follows the intent of Model tive, although the court is entitled to shift referring to the requirements of that section. Law article 13, but the language required al- the burden to the extent indicated in section Even if the result is correct in a particular ternation to fit into the Bankruptcy Code. 1516. The word ‘‘proof’’ in subsection (3) has case, the procedure is undesirable, because The law as to priority for foreign claims been changed to ‘‘evidence’’ to make it clear- there is room for abuse of comity. Parties that fit within a class given priority treat- er using United States terminology that the would be free to avoid the requirements of ment under section 507 (for example, foreign ultimate burden is on the foreign representa- this chapter and the expert scrutiny of the employees or spouses) is unsettled. This sec- tive. bankruptcy court by applying directly to a tion permits the continued development of ‘‘Registered office’’ is the term used in the state or federal court unfamiliar with the case law on that subject and its general prin- Model Law to refer to the place of incorpora- statutory requirements. Such an application ciple of national treatment should be an im- tion or the equivalent for an entity that is could be made after denial of a petition portant factor to be considered. At a min- not a natural person. under this chapter. This section con- imum, under this section, foreign claims The presumption that the place of the reg- centrates the recognition and deference must receive the treatment given to general istered office is also the center of the debt- process in one United States court, ensures unsecured claims without priority, unless or’s main interest is included for speed and against abuse, and empowers a court that they are in a class of claims in which domes- convenience of proof where there is not seri- will be fully informed of the current status tic creditors would also be subordinated. ous controversy. of all foreign proceedings involving the debt- The Model Law allows for an exception to Section 1517. Order granting recognition or. the policy of nondiscrimination as to foreign This section closely follows article 17 of Subsection (d) has been added to ensure revenue and other public law claims. Such the Model Law, with a few exceptions. that a foreign representative cannot seek re- claims (such as tax and social security The decision to grant recognition is not de- lief in courts in the United States after being claims) have been denied enforcement in the pendent upon any findings about the nature denied recognition by the court under this United States traditionally, inside and out- of the foreign proceedings of the sort pre- chapter. side of bankruptcy. The Code is silent on this viously mandated by section 304(c). The re- Subsection (c) makes activities in the point, so the rule is purely a matter of tradi- quirements of this section, which incor- United States by a foreign representative tional case law. It also allows the Depart- porates the definitions in section 1502 and subject to applicable United States law, just ment of the Treasury to negotiate reciprocal sections 101(23) and (24), are all that must be as 28 U.S.C. section 959 does for a domestic arrangements with out tax treaty partners fulfilled to attain recognition. trustee in bankruptcy. in this regard, although it does not mandate Reciprocity was specifically suggested as a Subsection (f) provides a limited exception any restriction of the evolution of case law requirement for recognition on more than to the prior recognition requirement so that pending such negotiations. one occasion in the negotiations that re- collection of a claim which is property of the Section 1514. Notification of foreign creditors sulted in the Model Law. It was rejected by debtor, for example an account receivable, concerning a case under title 11. overwhelming consensus each time. The by a foreign representative may proceed This section ensures that foreign creditors United States was one of the leading coun- without commencement of a case or recogni- tries opposing the inclusion of a reciprocity tion under this chapter. receive proper notice of cases in the United States. requirement. In this regard, the Model Law Section 1510. Limited jurisdiction As ‘‘foreign creditor’’ is not defined term, conforms to section 304, which has no such Section 1510, article 10 of the Model Law, is foreign addresses are used as the distin- requirement. modeled on section 306 of the Code. Although guishing factor. The Federal Rules of Bank- The drafters of the Model Law understood the language referring to conditional relief ruptcy Procedure (‘‘Rules’’) should be that only a main proceeding or a non-main in section 306 is not included, the court has amended to conform to the requirements of proceeding meeting the standards of section the power under section 1522 to attach appro- this section, including a special form for ini- 1502 (that is, one brought where the debtor priate conditions to any relief it may grant. tial notice to such creditors. In particular, has an establishment) were entitled to rec- Nevertheless, the authority in section 1522 is the Rules must provide for additional time ognition under this section. The Model Law not intended to permit the imposition of ju- for such creditors to file proofs of claim has been slightly modified to make this risdiction over the foreign representative be- where appropriate and must provide for the point clear by referring to the section 1502 yond the boundaries of the case under this court to make specific orders in that regard definition of main and non-main pro- chapter and any related actions the foreign in proper circumstances. The notice must ceedings, as well as to the general definition representative may take, such as com- specify that secured claims must be asserted, of a foreign proceeding in section 101(23). mencing a case under another chapter of this because in many countries such claims are Naturally, a petition under section 1515 must title. not affected by an insolvency proceeding and show that proceeding is a main or a quali- Section 1511. Commencement of case under need not be filed. Of course, if a foreign cred- fying non-main proceeding in order to win section 301 or 303 itor has made an appropriate request for no- recognition under this section. tice, it will receive notices in every instance Consistent with the position of various This section follows the intent of article 11 civil law representatives in the drafting of of the Model Law, but adds language that where notices would be sent to other credi- tors who have made such requests. the Model Law, recognition creates a status conforms to United States law or that is oth- with the effects set forth in section 1520, so erwise necessary in the United States given Subsection (d) replaces the reference to ‘‘a reasonable time period’’ in Mode Law article those effects are not viewed as orders to be its many bankruptcy court districts and the modified, as are orders granting relief under importance of full information and coordina- 14(3)(a). It makes clear that the Rules, local rules, and court orders must make appro- section 1519 and 1521. Subsection (4) states tion among them. the grounds for modifying or terminating Article 11 does not distinguish between priate adjustments in time periods and bar recognition. On the other hand, the effects of voluntary and involuntary proceedings, but dates so that foreign creditors have a reason- recognition (found in section 1520 and includ- seems to have implicitly assumed an invol- able time within which to receive notice or ing an automatic stay) are subject to modi- untary proceeding. take an action. fication under section 362(d), made applica- Subsection 1(a)(2) goes farther and permits Section 1515. Application for recognition of a ble by section 15320(2), which permits lifting a voluntary filing, with its much simpler re- foreign proceeding the stay of section 1520 for cause. quirements, if the foreign proceeding that This section follows article 15 of the Model Paragraph 1(d) of section 17 of the Model has been recognized is a main proceeding. Law with minor changes. Law has been omitted as an unnecessary re- Section 1512. Participation of a foreign rep- The Rules will require amendment to pro- quirement for United States purposes, be- resentative in a case under this title vide forms for some or all of the documents cause a petition submitted to the wrong This section follows article 12 of the Model mentioned in this section, to make necessary court will be dismissed or transferred under Law with a sight alternation to adjust to additions to Rules 1000 and 20002 to facilitate other provisions of United States law. United States procedural terminology. The appropriate notices of the hearing on the pe- The reference to section 350 refers to the effect of this section is to make the recog- tition for recognition, and to require filing of routine closing of a case that has been com- nized foreign representative a party in inter- lists of creditors and other interested per- pleted and will invoke requirements includ- est in any pending or later commenced sons who should receive notices. Throughout ing a final report from the foreign represent- United States bankruptcy case. the Model Law, the question of notice proce- ative in such form as the Rules may provide Throughout this chapter, the word ‘‘case’’ dure is left to the law of the enacting state. or a court may order. has been substituted for the word ‘‘pro- Section 1516. Presumptions concerning rec- Section 1518. Subsequent information ceeding’’ in the Model Law when referring to ognition This section follows the Model Law, except cases under the United States Bankruptcy This section follows article 16 of the Model to eliminate the word ‘‘same’’ which is ren- Code, to conform to United States usage. Law with minor changes. dered unnecessary by the definition of ‘‘debt- Section 1513. Access of foreign creditors to a Although section 1515 and 1516 are designed or’’ in section 1502 and to provide for a for- case under this title to make recognition as simple and expedient mal document to be filed with the court. This section mandates nondiscriminatory as possible, the court may hear proof on any Judges in several jurisdictions, including or ‘‘national’’ treatment for foreign credi- element stated. The ultimate burden as to the United States, have reported a need for a

VerDate 06-DEC-2000 04:22 Dec 08, 2000 Jkt 089060 PO 00000 Frm 00056 Fmt 4624 Sfmt 0634 E:\CR\FM\A07DE6.084 pfrm02 PsN: S07PT1 December 7, 2000 CONGRESSIONAL RECORD — SENATE S11719 requirement of complete and candid reports eign representative of a foreign main pro- Section 1523. Actions to avoid acts detrimental to the court of all proceedings, worldwide, ceeding an automatic right to operate the to creditors involving the debtor. This section will en- debtor’s business and exercise the power of a This section follows article 23 of the Model sure that such information is provided to the trustee under section 363 and 542, unless the Law, with wording to fit it within procedure court on a timely basis. Any failure to com- court orders otherwise. A foreign representa- under this title. ply with this section will be subject to the tive of a foreign main proceeding may need It confers standing on a recognized foreign sanctions available to the court for viola- to continue a business operation to maintain representative to assert an avoidance action tions of the statue. The section leaves to the value and granting that authority automati- but only in a pending case under another Rules the form of the required notice and re- cally will eliminate the risk of delay. If the chapter of this title. The Model Law is not lated questions of notice to parties in inter- court is uncomfortable about his authority clear about whether it would grant standing est, the time for filing, and the like. in a particular situation it can ‘‘order other- in a recognized foreign proceeding if not full Section 1519. Relief may be granted upon peti- wise’’ as part of the order granting recogni- case were pending. This limitation reflects tion for recognition of a foreign pro- tion. concerns raised by the United States delega- ceeding Two special exceptions to the automatic tion during the UNCITRAL debates that a stay are embodied in subsections (b) and (c). This section generally follows article 19 of single grant of standing to bring avoidance To preserve a claim in certain foreign coun- the Model Law. actions neglects to address very difficult tries, it may be necessary to commence an The bankruptcy court will have jurisdic- choice of law and forum issues. This limited action. Subsection (b) permits the com- tion to grant emergency relief under Rule grant of standing in section 1523 does not mencement of such an action, but would not 7065 pending a hearing on the petition for create or establish any legal right of avoid- allow for its further prosecution. Subsection recognition. This section does not expand or ance nor does it create or imply any legal (c) provides that there is not stay of the reduce the scope of section 105 as determined rules with respect to the choice of applicable commencement of a full United States bank- by cases under section 105 nor does it modify law as to the avoidance of any transfer or ob- ruptcy case. This essentially provides an es- the sweep of sections 555 to 560. Subsection ligation. cape hatch through which any entity, includ- (d) precludes injunctive relief against police The courts will determine the nature and ing the foreign representative, can flee into and regulatory action under section 1519, extent of any such action and what national a full case. The full case, however, will re- leaving section 105 as the only avenue to law may be applied to such action. main subject to subchapter IV and V on co- such relief. Subsection (e) makes clear that operation and coordination of proceedings Section 1524. Intervention by a foreign rep- this section contemplates injunctive relief and to section 305 providing for stay or dis- resentative and that such relief is subject to specific The wording is the same as the Model Law, rules and a body of jurisprudence. Subsection missal. Section 108 of the Bankruptcy Code pro- (f) was added to complement amendments to except for a few clarifying words. vides the tolling protection intended by This section gives the foreign representa- the Code provisions dealing with financial Model Law article 2(3), so no exception is tive whose foreign proceeding has been rec- contracts. necessary as to claims that might be extin- ognized the right to intervene in United Section 1520. Effects of recognition of a for- guished under United States law. States cases, state or federal, where the eign main proceeding Section 1521. Relief that may be granted upon debtor is a party. Recognition begin an act In general, this chapter sets forth all the recognition of a foreign proceeding under federal bankruptcy law, it must take relief that is available as a matter of right This section follows article 21 of the Model effect in state as well as federal courts. This based upon recognition hereunder, although Law, with detailed changes to fit United section does not require substituting the for- additional assistance may be provided under States law. eign representative for the debtor, although section 1507 and this chapter have no effect The exceptions in subsection (a)(7) relate that result may be appropriate in some cir- on any relief currently available under sec- to avoiding powers. The foreign representa- cumstances. tion 105. tive’s status as to such powers is governed by The stay created by article 20 of the Model Section 1525. Cooperation and direct commu- section 1523 below. The avoiding power in law is imported to chapter 15 from existing nication between the court and foreign section 549 and the exceptions to that power provisions of the Code. Subsection (a)(1) courts or foreign representatives are covered by section 1520(a)(2). The wording is almost exactly that of the combines subsections 1(a) and (b) of article The word ‘‘adequately’’ in the Model Law, 20 of the Model Law, because section 362 im- Model Law. articles 21(2) and 22(1), has been changed to The right or courts to communicate with poses the restrictions required by those two ‘‘sufficiently’’ in section 1521(b) and 1522(a) other courts in worldwide insolvency cases is subsections and additional restrictions as to avoid confusion with a very specialized of central importance. This section author- well. legal term in United States bankruptcy, Subsections (a)(2) and (4) apply the Code izes courts to do so. This right must be exer- ‘‘adequate protection.’’ sections that impose the restrictions called Subsection (c) is designed to limit relief to cised, however, with due regard to the rights for by subsection 1(c) of the Model Law. In assets having some direct connection with a of the parties. Guidelines for such commu- both cases, the provisions are broader and non-main proceeding, for example where nications are left to the Rules. more complete than those contemplated by they were part of an operating division in Section 1526. Cooperation and direct commu- the Model Law, but include all the restrains the jurisdiction of the non-main proceeding nication between the trustee and foreign the Model Law provisions would impose. when they were fraudulently conveyed and courts or foreign representatives As the foreign proceeding may or may not then brought to the United States. Sub- create an ‘‘estate’’ similar to that created in This section follows the Model Law almost sections (d), (e) and (f)j are identical to those cases under this title, the restraints are ap- exactly. same subsections of section 1519. The language in Model Law article 26 con- plicable to actions against the debtor under This section does not expand or reduce the section 362(a) and with respect to the prop- cerning the trustee’s function was elimi- scope of relief currently available in ancil- nated as unnecessary because always implied erty of the debtor under the remaining sec- lary cases under sections 105 and 304 nor does tions. The only property covered by this sec- under United States law. The section author- it modify the sweep of section 555 through izes the trustee, including a debtor in posses- tion is property within the territorial juris- 560. diction of the United States as defined in sion, to cooperate with other proceedings. section 1502. To achieve effects on property Section 1522. Protection of creditors and other Subsection (3) is not taken from the Model of the debtor which is not within the terri- interested persons Law but is added so that any examiner ap- torial jurisdiction of the United States, the This section follows article 22 of the Model pointed under this chapter will be designated foreign representative would have to com- Law with changes for United States usage by the United States Trustee and will be mence a case under another chapter of this and references to relevant Code sections. bonded. title. It gives the bankruptcy court broad lati- Section 1527. Forms of cooperation By applying section 361 and 362, subsection tude to mold relief to circumstances, includ- This section follows the Model Law ex- (a) makes applicable the United States ex- ing appropriate responses if it is shown that actly. United States bankruptcy courts have the foreign proceeding is seriously and ceptions and limitation to the restraints im- already engaged in most of the forms of co- unjustifiably injuring United States credi- posed on creditors, debtors, and other in a operation mentioned here, but they now tors. For response to a showing that the con- case under this title, as stated in article 20(2) have explicit statutory authorization for ditions necessary to recognition did not ac- of the Model Law. It also introduces the con- acts like the approval of protocols of the sort tually exist or have ceased to exist, see sec- cept of adequate protection provided in sec- used in cases. tions 362 and 363. tion 1517. Concerning the change of ‘‘ade- These exceptions and limitations include quately’’ in the Model Law to ‘‘sufficiently’’ Section 1528. Commencement of a case under these set forth in section 362(b), (c) and (d). in this section, see section 1521 Subsection title 11 after recognition of a foreign main As one result, the court has the power to ter- (d) is new and simply makes clear that an ex- proceeding minate the stay pursuant to section 362(d), aminer appointed in a case under chapter 15 This section follows the Model Law, with for cause, including a failure of adequate shall be subject to certain duties and bond- specifics of United States law replacing the protection. ing requirements based on those imposed on general clause at the end to cover assets nor- Subsection (a)(2), by its reference to sec- trustees and examiners under other chapters mally included within the jurisdiction of the tion 363 and 552 adds to the powers of a for- of this title. United States courts in bankruptcy cases,

VerDate 06-DEC-2000 03:36 Dec 08, 2000 Jkt 089060 PO 00000 Frm 00057 Fmt 4624 Sfmt 0634 E:\CR\FM\A07DE6.087 pfrm02 PsN: S07PT1 S11720 CONGRESSIONAL RECORD — SENATE December 7, 2000 except where assets are subject to the juris- broadly includes all proceedings involving Section 1002. Debt limit increase diction of another recognized proceeding. debtors in severe financial distress, so long This section amends section 104(b) of title In a full bankruptcy case, the United as those proceedings also meet the other cri- 11, United States Code, providing for annual States bankruptcy court generally has juris- teria of section 101(24). or biannual adjustments of the debt limit for diction over assets outside the United The amendment to section 157(b)(2) of title family farmers beginning with the adjust- States. Here that jurisdiction is limited 28 provides that proceedings under chapter 15 ment to be made on April 1, 2001. where those assets are controlled by another will be core proceedings while other amend- Section 1003. Certain claims owed to govern- recognized proceeding, if it is a main pro- ments to title 28 provide that the United mental units ceeding. States Trustee’s standing extend to cases The court may use section 305 of this title under chapter 15 and that the United States Subsection 1003(a) provides for payment in to dismiss, stay, or limit a case as necessary Trustee’s duties include acting in chapter 15 full of all claims entitled to section 507 pri- to promote cooperation and coordination in cases. ority unless the claim is owed to a govern- a cross-border case. In addition, although the Although the United States will continue mental unit arising from the sale, exchange, jurisdictional limitation applies only to to assert worldwide jurisdiction over prop- or other disposition of any farm asset used in United States bankruptcy cases commenced erty of a domestic or foreign debtor in a full the debtor’s farming operation. In that case, after recognition of a foreign proceeding, the bankruptcy case under chapters 7 and 13 of the claim is treated as an unsecured claim court has ample authority under the next this title, subject to deference to foreign pro- and the underlying debt is treated the same section and section 305 to exercise its discre- ceedings under chapter 15 and section 305, if the debtor receives a discharge or the hold- tion to dismiss, stay, or limit a United the situations different in a case commenced er of a particular claim agrees to a different States case filed after a petition for recogni- under chapter 15. There the United States is treatment of that claim. Subsection 1003(b) tion of a foreign main proceeding has been acting solely in an ancillary position, so ju- amends section 1231(d) of chapter 11, pro- filed but before it has been approved, if rec- risdiction over property is limited to that viding that any governmental unit’’ may ognition is ultimately granted. stated in chapter 15. provide a determination regarding the tax effects of a proposed plan under chapter 12. Section 1529. Coordination of a case under Amendments to section 109 permit recogni- title 11 and a foreign proceeding tion of foreign proceedings involving foreign TITLE XI—HEALTH CARE AND EMPLOYEE This section follows the Model Law almost insurance companies and involving foreign BENEFITS exactly, but subsection (4) adds a reference banks which do not have a branch or agency This title amends the Bankruptcy Code to to section 305 to make it clear the bank- in the United States (as defined in 12 U.S.C. deal with the problems presented when a ruptcy court may continue to use that sec- section 3103). While a foreign bank not sub- health care business, such as a hospital or tion, as under present law, to dismiss or sus- ject to United States regulation will be eligi- nursing home, files for bankruptcy under pend a United States case as part of coordi- ble for chapter 15 as a consequence of the chapters 7, 9 or 11. amendment to section 109, section 303 pro- nation and cooperation with foreign pro- Section 1101. Definitions ceedings. This provision is consistent with hibits the commencement of a full involun- tary case against such a foreign bank unless Section 1101 defines the terms ‘‘health care United States policy to act ancillary to a business,’’ ‘‘patients,’’ and ‘‘patient foreign main proceeding whenever possible. the bank is a debtor in a foreign proceeding. While section 304 is repealed and replace by records,’’ which are added to definitions sec- Section 1530. Coordination of more than one chapter 15, access to the jurisprudence which tion of the Bankruptcy Code (11 U.S.C. ’101). foreign proceeding developed under section 304 is preserved in Section 1102. Disposal of patient records This section follows exactly article 30 of the context of new section 1507. On deciding Section 1102 adds a new section 351 in sub- the Model Law. whether to grant the Additional Assistance chapter III of Chapter 3 of title 11 dealing It ensures that a foreign main proceeding contemplated by section 1507, the Court with the protection and disposal of patient will be given primacy in the United States, must consider the same factors that had records in a health care business bankruptcy consistent with the overall approach of the been imposed by former section 304. situation. United States favoring assistance to foreign The venue provisions for cases ancillary to The Trustee is required to follow certain main proceedings. foreign proceedings have been amended to procedures with respect to general and spe- Section 1531. Presumption of insolvency based provide a hierarchy of choices beginning cific notice to patients and insurance compa- on recognition of a foreign main pro- with principal place of business in the United nies regarding patient records, as well as the ceeding States, if any. If there is no principal place transfer and disposal of such records. These This section follows the Model Law ex- of business in the United States, but there is procedures are intended to protect the pri- actly, inserting a reference to the standard litigation against a debtor, then the district vacy and confidentiality of an individual’s for an involuntary case under this title. in which the litigation is pending would be medical records when they are in the cus- Where an insolvency proceeding has begin the appropriate venue. In any other case, tody of a health care business that has filed in the home country of the debtor, and in the venue must be determined with reference to for bankruptcy relief. the interests of justice and the convenience absence of contrary evidence, the foreign Section 1103. Administrative expenses claim for of the parties. representative should not have to make a costs of closing a health care business TITLE IX—FINANCIAL CONTRACT PROVISIONS new showing that the debtors in the sort of Section 1103 amends section 503(b) of title financial distress requiring a collective judi- This title addresses recently prominent 11, making the actual, necessary costs and cial remedy. The word ‘‘proof’’ here means forms of financial investments which require expenses of closing a health care business, ‘‘presumption.’’ The presumption does not special treatment in the insovlency context. including the cost or expense of disposing of arise for any purpose outside this section. It amends the Federal Deposit Insurance Act patient records and transferring patients to Section 1532. Rule of payment in concurrent to provide treatment financial contracts, another health care facility, an allowable ad- proceeding commodities contracts, securities contracts, ministrative expense. forward contracts, repurchase agreements This section follows the Model Law exactly Section 1104. Appointment of ombudsman to act and swaps. It also amends the Bankruptcy and is very similar to prior section 508(a), as patient advocate which is repealed. The Model Law language Code to provide appropriate treatment for Section 1104 (a) adds a new section 332 in is somewhat clearer and broader than the those types of financial investments. The Se- subchapter II of chapter 3 of title 11, pro- equivalent language of prior section 508(a). curities Investor Protection Act is amended as well to create an exception from the stay viding that the court appoint an ombudsman Section 802. Other amendments to titles 11 and under that Act for certain financial invest- to act as an advocate for patients of health 28, United States Code ment instruments. Finally, the Bankruptcy care facilities that have filed for bank- Other sections of title 11 have been amend- Code is amended to deal with certain special- ruptcy. The ombudsman will monitor the ed to apply relevant provisions in those sec- ized aspects of asset securitization. quality of patient care and report to the tions to chapter 15 and to specify which por- court every 60 days regarding the quality of TITLE X—PROTECTION OF FAMILY FARMERS tions of chapter 15 apply in cases under other that care. If the ombudsman determines that chapters of title 11. Section 1001. Permanent reenactment of chapter patient care is declining significantly or is The key definitions of foreign proceeding 12 otherwise materially compromised, he/she is and foreign representative do not appear in Under subsection 1001(a) chapter 12 (Ad- to immediately notify the court by motion chapter 15, but rather replace the prior defi- justment of Debts of a Family Farmer with or written report, with notice to appropriate nitions of those terms in section 101(23) and Regular Annual Income) is reenacted effec- parties in interest. The ombudsman is to 101(24). The new definitions are nearly iden- tive October 1, 1999. No time limit or termi- treat any information obtained regarding pa- tical to those contained in the Model Law nation date is established for chapter 12 tients as confidential information. The om- but add to the phrase ‘‘under a law relating under this provision. Subsection 1001(b) re- budsman may not review confidential pa- to insolvency’’ the words ‘‘or debt adjust- peals subsection 302(f) of the Bankruptcy, tient records, without the prior approval of ment.’’ This addition emphasizes that the Judges, United States Trustees, and Family the court and under restrictions protecting scope of the Model Law and chapter 15 is not Farmer Bankruptcy Act of 1986, which set a their confidentiality. Section 1104(b) pro- limited to proceedings involving only debt- now outdated termination date of October 1, vides for compensation of an ombudsman ors which are technically insolvent, but 1998 for chapter 12. under section 330(a)(1) of title 11.

VerDate 06-DEC-2000 03:36 Dec 08, 2000 Jkt 089060 PO 00000 Frm 00058 Fmt 4624 Sfmt 0634 E:\CR\FM\A07DE6.089 pfrm02 PsN: S07PT1 December 7, 2000 CONGRESSIONAL RECORD — SENATE S11721 Section 1105. Debtor in possession; duty of trust- regard to chapter 11 plan confirmation re- Judgeship Act pf 1992 are extended until the ee to transfer patients quirements. Third, it amends section 541 of first vacancy resulting from the death, re- Section 1105 amends section 704(a) of title the Bankruptcy Code to provide that any tirement, resignation, or removal occurs: 11, stating that the trustee is to use all rea- property of a bankruptcy estate, where the (A) 8 years or more after November 8, 1993, sonable and best efforts to transfer patients debtor is a nonprofit corporation (as de- in the northern district of Alabama. from a health care facility being closed to scribed in section 501(c)(3) of the Internal (B) 10 years or more after October 28, 1993, another nearby and comparable health care Revenue Code) may be transferred to an enti- in the district of Delaware. facility, which maintains a reasonable qual- ty that is not such a corporation, but only (C) 8 years or more after August 29, 1994, in ity of care. under the same conditions that would apply the district of Puerto Rico. if the debtor was not in bankruptcy. The (D) 8 years or more after June 27, 1994, in Section 1106. Exclusion from program participa- the district of South Carolina. tion not subject to automatic stay amendments made by this section apply to cases pending on the date of enactment of (E) 8 years or more after November 23, 1993, This section permits the Secretary of this Act. A limited exception pertains with in the district of Tennessee. Health and Human Services to exclude the respect to confirmation of a chapter 11 plan. The section also amends section 152(a)(1) of debtor from participation in the medicare title 28 of the United States Code. It adds Section 1223. Protection of valid purchase program or other Federal healthcare pro- that each judge shall be appointed by the money security interests gram without violating the automatic stay. U.S. Court of Appeals for the circuit in Section 1223 amends section 547(c)(3)(B) of TITLE XII—TECHNICAL AMENDMENTS which such a district is located. the Bankruptcy Code extending the applica- Section 1226. Compensating trustees Section 1201. Definitions ble perfection period for a security interest This section makes technical corrections in property acquired by the debtor from 20 This section amends section 326 (Limita- to the definitions of the Bankruptcy Code, days to 30 days after the debtor receives pos- tion on Compensation of Trustee) with a new alters the definitions for ‘‘single asset real session of the property. subsection (e) providing that, in a case where estate’’ and ‘‘transfer’’, and renumbers the a trustee in a chapter 7 case makes a motion Section 1224. Extensions definitions. to dismiss or convert under section 707(b) Section 302(d)(3) of the Bankruptcy, Sections 1202—1212. Miscellaneous technical cor- and such motion is granted, the court shall Judges, U.S. Trustees, and Family Farmer rections allow ‘‘reasonable compensation’’ under sec- Bankruptcy Act of 1986 is amended by strik- tion 330(a) of title 11 for the services and ex- These provisions make technical changes ing out all references to ‘‘or October 1, 2002, penses of the trustee and the trustee’s coun- to the Bankruptcy Code provisions on ad- whichever occurs first’’ and ‘‘October 1, 2003, sel. The compensation covers the reasonable justment of dollar amounts, extensions of or’’ and ‘‘whichever occurs first’’. These costs of preparing and presenting the section time, dismissal, bankruptcy petition pre- changes permanently extend the bankruptcy 707(b) motion and any related appeals. This parers, compensation of professionals, con- administrator program in Alabama and section also adds a new subsection (f) to sec- version, administrative expenses, discharge, North Carolina. tion 326 providing that, subject to the limits discriminatory treatment, and property of Section 1225. Bankruptcy judgeships established in subsection 326(a), the court the estate provisions. This section may be cited as the ‘‘Bank- shall consider the ‘‘results achieved’’ when Section 1213. Preferences ruptcy Judgeship Act of 2000.’’ It authorizes determining a trustee’s compensation. Fi- This provision overrules Levit v. Ingersoll the appointment of additional temporary nally, this section amends subsection 1326(b) Rand Financial Corp. (In re V.N. Deprizio bankruptcy judgeships in the districts that dealing with payments under a chapter 13 Const. Co.), 874 F.2d 1186 (7th Cir. 1989). If a follow: plan. Specifically, a new paragraph (3) is transfer is avoided because it was made dur- (A) One additional bankruptcy judgeship added to subsection 1326(b) establishing a ing the period 90 days–1 year before bank- for the eastern district of California. formula limiting the amount a debtor must ruptcy to a non-insider creditor for the ben- (B) Four additional bankruptcy judgeships pay under a plan to compensate a chapter 7 efit of an insider, the transfer is avoided only for the central district of California. trustee or trustee’s attorney who has been with respect to the insider. It is not avoided (C) One additional bankruptcy judgeship awarded fees in a chapter 7 case, when that with respect to the non-insider creditor, and for the district of Delaware. compensation is allowed under section 326(e). neither the transferred property nor its (D) Two additional bankruptcy judgeships Section 1227. Amendment to section 362 of title value may be recovered from the non-insider for the southern district of Florida. 11, U.S. Code creditor. (E) One additional bankruptcy judgeship Amends section 362(b)(18) to exempt from Sections 1214–1217. Miscellaneous technical cor- for the southern district of Georgia. the automatic stay a special tax or special rections (F) Two additional bankruptcy judgeships assessment on real property (whether or not These sections make technical changes to for the district of Maryland. ad valorem), imposed by a governmental the Bankruptcy Code provisions on (G) One additional bankruptcy judgeship unit, if such special tax or assessment comes postpetition transactions, property of the es- for the eastern district of Michigan. due after the filing of the bankruptcy peti- tate, municipal bankruptcy and railroad line (H) One additional bankruptcy judgeship tion. abandonments. for the southern district of Mississippi. Section 1228. Judicial education (I) One additional bankruptcy judgeship for Section 1219. Discharge under chapter 12 the district of New Jersey. Provides that the Director of the Federal Section 1219 amends section 1228 (which (J) One additional bankruptcy judgeship Judicial Center, in consultation with the Di- deals with discharge under chapter 12) of the for the eastern district of New York. rector of the Executive Office of U.S. Trust- Bankruptcy Code to correct erroneous ref- (K) One additional bankruptcy judgeship ees, shall develop materials and conduct erences. for the northern district of New York. such training as may be useful to the courts Section 1220. Bankruptcy cases and proceedings (L) One additional bankruptcy judgeship in implementing this Act, focusing in par- ticular on the section 707(b) means test and Section 1220 of the of the Act amends sec- for the southern district of New York. reaffirmation. tion 1334(d) of title 28 of the United States (M) One additional bankruptcy judgeship Code to correct erroneous references. for the eastern district of North Carolina. Section 1229. Reclamation Section 1221. Knowing disregard of bankruptcy (N) One additional bankruptcy judgeship Subsection (a) of this section amends sec- law or rule for the eastern district of Pennsylvania. tion 546(c) of title 11, to allow a seller of (O) One additional bankruptcy judgeship goods to reclaim those goods under certain This section amends section 156(a) of title for the middle district of Pennsylvania. circumstances and establishing the proce- 18 of the United States Code, which defined (P) One additional bankruptcy judgeship dures and time limits for doing so. This pro- ‘‘bankruptcy petition preparer’’ and ‘‘docu- for the district of Puerto Rico. vision was amended in 1994 so as to expand ment for filing,’’ by making stylistic changes (Q) One additional bankruptcy judgeship the ability of sellers of goods to reclaim such and by making a correct reference to title 11 for the western district of Tennessee. goods from a trustee by extending the rec- of the United States Code. (R) One additional bankruptcy judgeship lamation demand period from 10 days to 20 Section 1222. Transfers made by nonprofit chari- for the eastern district of Virginia. days. The amendment made by this Act ex- table corporations The section provides that judgeship vacan- tends this period to 45 days, subject to cer- Section 1222 amends section 363(d) of the cies in the above districts resulting from tain limitations and requirements. Under ex- Bankruptcy Code to restrict the right of a death, retirement, resignation, or removal of isting law and this amendment, the rights trustee to use, sell, or lease property owned a bankruptcy judge which occur 5 years or and powers of the trustee under sections by a nonprofit corporation or trust. First, more after the appointment date shall not be 544(a), 545, 547 and 549 are subject to the right the use, sale or lease must be in accordance filled. of a seller of goods that has sold goods to the with applicable nonbankruptcy law and must The section also adds that temporary debtor in the ordinary course of the seller’s not be inconsistent with any relief granted bankruptcy judgeships authorized for the business. under certain specified provisions of section northern district of Alabama, the district of Specifically, under the new subsection 362 of the Bankruptcy Code concerning the Delaware, the district of Puerto Rico, the 546(c)(1), the seller’s rights to reclaim goods applicability of the automatic stay. Second, district of South Carolina, and the eastern which an insolvent debtor received not later the section imposes similar restrictions with district of Tennessee under the Bankruptcy than 45 days after the commencement of the

VerDate 06-DEC-2000 04:22 Dec 08, 2000 Jkt 089060 PO 00000 Frm 00059 Fmt 4624 Sfmt 0634 E:\CR\FM\A07DE6.091 pfrm02 PsN: S07PT1 S11722 CONGRESSIONAL RECORD — SENATE December 7, 2000 case is not subject to certain of the trustee’s tangible personal property (other than secu- crees of district courts under subsection avoiding powers. However, the seller may rities or written or printed evidence of in- 158(a) and of bankruptcy appellate panels not reclaim the goods unless the seller debtedness or title) cannot be treated as under subsection 158(b). In addition, the makes a reclamation demand in writing: (A) property of the bankruptcy estate once the courts of appeals are granted jurisdiction not later than 45 days of the date of receipt statutory redemption period has run and the over appeals from all judgments, decisions, of such goods by the debtor; or (B) not later pawned goods have not been redeemed. Thus, orders, and decrees of the district courts en- than 20 days after the date of commence- pawned personal property is not part of a tered under the new subsection 158(d), to the ment of the case, if the 45–day period expires debtor’s bankruptcy estate, after the time extent such judgment, decision, order, and after commencement of the case. Subsection under the contract for redeeming the prop- decree would be reviewable by the district 546(c)(2) states that a failure to provide no- erty has expired. This codifies what most court under subsection 158(a). An appeal tice in a manner required under paragraph courts have held, and will relieve the courts from a district court or a bankruptcy appel- (1), does not preclude a seller from making a from the burden of having to repeatedly rule late panel shall be taken in the same manner claim under section 503(b)(8). on whether pawn transactions are subject to as civil appeals are generally taken to the As amended, subsection 546(c) contains cer- the automatic stay. courts of appeals from the district courts as tain exceptions to the seller’s reclamation Section 1233. Trustees provided in Rule 4 of the Federal Rules of rights. First, such rights do not apply to Appellate Procedure. The court of appeals, in claims with respect to grain or fish covered This section amends 28 U.S.C. 586(d) to its discretion, may exercise jurisdiction over in subsection 546(d). Second, another excep- allow private trustees, appointed to a panel an appeal from an interlocutory judgment, tion is provided for priority claims of a gov- under subsection 586(a)(1) or appointed under decision, order, or decree to the extent pro- ernmental unit under subsection 507(c) with subsection 586(b), to obtain judicial review vided in paragraph (3) of subsection (e). respect to an erroneous refund or tax credit. when they are terminated or cease to be as- Subsection (b) of section 1237 of this Act, Finally, reclamation claims are also made signed cases. Judicial review shall be avail- merely makes conforming changes sub- subject to the prior rights of holders of secu- able in the United States district court for stituting ‘‘section 158(e)’’ for ‘‘section 158(d)’’ rity interests in such goods or the proceeds the district for which the panel to which the in three sections of the Code. of the sale of such goods. trustee was appointed under subsection Section 1236. Exemptions Subsection (b) of this section, amends sec- 586(a)(1) serves, or the district where a trust- This section corrects a cross reference. tion 503(b) of title 11 to add a new paragraph ee appointed under subsection 586(a) resides. (8) which provides for an administrative ex- The trustee must first exhaust all adminis- TITLE XIII—METHAMPHETAMINE AND OTHER pense allowance for the value of goods re- trative remedies which, if the trustee elects, CONTROLLED SUBSTANCES ceived by the debtor not later than 20 days shall include a hearing on the record. The This title increases the controls on the after filing, if the goods were sold to the final agency decision will be upheld unless it manufacture and sale of certain illegal debtor in the ordinary course of the debtor’s is found unreasonable and without cause drugs. business. based upon the administrative record before TITLE XIV—CONSUMER CREDIT DISCLOSURE Section 1230. Providing requested tax documents the agency. This section also amends 28 Section 1401. Enhanced disclosures under an to the court U.S.C. 586(e) to allow an individual appointed open-ended credit plan Section 315 of HR 2415 amends section 521 under subsection 586(b) to seek judicial re- This section would amend section 127(b) of of the Bankruptcy Code to insert a new sub- view of a final agency decision to deny a the Truth in Lending Act (‘‘TILA’’) to re- section which requires the debtor to provide claim for actual, necessary expenses. Before quire new minimum payment disclosures on certain tax documents. In addition, under seeking judicial review, the individual must monthly billing statements sent to card- Rule 2004 discovery, a debtor can be required exhaust all available administrative rem- holders. Under this section, the front page of to disclose tax returns and other tax infor- edies and the final agency decision will be each monthly billing statement must in- mation in appropriate cases. If a debtor fails upheld unless it is unreasonable and without clude a new minimum payment disclosure. to do so, this provision provides sanctions. cause based on the administrative record. The contents of the disclosure will vary de- Subsection (a) withholds a discharge in a Section 1234. Bankruptcy forms pending upon the level of minimum pay- chapter 7 case where the debtor has failed to This section amends 28 U.S.C. 2075 (Bank- ments required under the applicable credit provide requested tax documents to the plan and whether the creditor is subject to court. Similarly, subsection (b) provides that ruptcy rules) by adding at the end a require- enforcement by the Federal Trade Commis- the court shall not confirm a reorganization ment that a form be prescribed for the state- sion (‘‘FTC’’). It is intended that the Federal plan under chapter 11 or chapter 13 unless ment required under section 707(b)(2)(C) of Reserve Board (‘‘FRB’’) will implement the and until requested tax documents have been title 11 concerning the debtor’s current new disclosures in a manner that will enable filed with the court. For these purposes, fail- monthly income and the calculations that creditors to preprint the disclosures on the ure to provide a tax return to the trustee is determine whether a presumption of abuse billing statements they send to cardholders. considered a refusal to provide it to the arises under section 707(b)(2)(A)(i). The form may provide general rules on the content of Disclosures by federally regulated finan- court. Subsection (c) provides that the bank- cial institutions. Financial institutions that ruptcy court must retain all documents sub- the statement. are subject to enforcement under TILA by a mitted in support of an individual’s bank- Section 1235. Expedited appeals of bankruptcy federal agency other than the FTC must pro- ruptcy claim under chapter 7, 11 or 13 for a cases to courts of appeals vide a minimum payment warning that will period of not more than 3 years after the Subsection (a) of this section strikes the vary depending upon whether the institu- conclusion of the case. In the event of a existing language contained in subsection tion’s credit plan typically requires a min- pending audit or enforcement action, the 158(d) of title 28, United States Code, and re- imum payment that is 4% or less, or more court may extend the time for retention of places it with language establishing an expe- than 4%, of the outstanding balance. If the the documents beyond the 3 year minimum. dited appeals process for judgments, deci- institution’s credit plan requires minimum Section 1231. Encouraging creditworthiness sions, orders, or decrees issued by bank- payments that are 4% or less of the out- Subsection (a) expresses that it is the ruptcy judges. Specifically, it provides that standing balance, the institution will include sense of Congress that: (1) some lenders may where an appeal of a judgment, decision, the following on the front of the monthly offer credit to consumers, without taking all order, or decree of a bankruptcy judge is billing statement. the steps necessary to ensure that consumers filed with the district court, that judgment, ‘‘Minimum Payment Warning: Making have the capacity to repay the resulting decision, order, or decree shall be deemed to only the minimum payment will increase the debts; and (2) the availability of credit may be a judgment, decision, order, or decree of interest you pay and the time it takes to be a factor contributing to consumer insol- (‘‘entered by’’) the district court 31 days repay your balance. For example, making vency. Subsection (b) authorizes the Federal after the appeal is filed with the district only the typical 2% minimum monthly pay- Reserve Board to conduct a study of credit court. This result will occur unless, not later ment on a balance of $1,000 at an interest industry practices with respect to soliciting than 30 days after such an appeal is filed rate of 17% would take 88 months to repay and extending credit. Subsection (c) provides with the district court, the district court: (1) the balance in full. For an estimate of the that, not later than 12 months after the date files its own decision on the appeal; (2) en- time it would take to repay your balance, of enactment of this Act, the Board shall ters an order extending the 30–day period for making only minimum payments, call this make public a report on the findings of its cause upon a motion of a party or on its own toll-free number lll.’’: study of the credit industry. The Board may motion; or (3) all parties to the appeal file a If the financial institution requires a min- then issue regulations that would require ad- written consent that the district court may imum payment of more than 4% of the out- ditional disclosures to consumers and take retain the appeal. An appeal is to be consid- standing balance, the institution would any other action, consistent with its statu- ered filed with the district court on the date make the same minimum payment disclo- tory authority, to encourage responsible the notice of appeal is filed, or on the date a sure with a different repayment example. lending practices and greater personal re- party makes an election under 28 U.S.C. Specifically, in such cases, the institution sponsibility on the part of consumers. 158(c)(1)(B). would indicate that ‘‘[m]aking a typical 5% Section 1232. Property no longer subject to re- This section also adds a new subsection (e) minimum monthly payment on a balance of demption to 28 U.S.C. 158, providing that the courts of $300 at an interest rate of 17% would take 24 This section amends section 541(b) of the appeals have jurisdiction over appeals from months to repay the balance in full.’’ How- Bankruptcy Code to clarify that pawned, all final judgments, decisions, orders, and de- ever, such an institution may elect to use

VerDate 06-DEC-2000 04:22 Dec 08, 2000 Jkt 089060 PO 00000 Frm 00060 Fmt 4624 Sfmt 0634 E:\CR\FM\A07DE6.093 pfrm02 PsN: S07PT1 December 7, 2000 CONGRESSIONAL RECORD — SENATE S11723 the example applicable to plans requiring which provides open-end credit temporary rate. This disclosure does not minimum payments of 4% or less if it choos- accountholders with the actual number of apply to any listing of a temporary rate on es to do so. months that it will take to repay the an envelope or other enclosure in which an Federally regulated financial institutions accountholder’s outstanding balance. In application or solicitation is mailed. also would be required to include in the dis- order to qualify for the exemption in sub- 3. If the annual percentage rate that will closure a toll-free telephone number that the paragraph (J), the creditor would simply in- apply after the expiration of the temporary institution’s open-end credit accountholders clude the following statement on each bill- rate will be a variable rate, the creditor may use to obtain information to be pub- ing statement as provided in new subpara- must disclose the time period in which the lished by the FRB estimating how long it graph (K) (as included in section 1234 of this introductory period will expire and an an- could take to repay a similar outstanding Act): nual percentage rate that was in effect with- balance. The toll-free telephone number may ‘‘Making only the minimum payment will in 60 days before the date of mailing the ap- be operated individually by the institution, increase the interest you pay and the time it plication or solicitation. Like the fixed-rate jointly with other creditors, or by a third takes to repay your balance. For more infor- disclosure, this disclosure must be made party. The toll-free number may connect mation, call this toll-free number: lll.’’ clearly and conspicuously in a prominent lo- accountholders to an automated device that The toll-free number may be operated indi- cation closely proximate to the first listing enables accountholders to obtain informa- vidually by the institution, jointly with of the temporary rate. This disclosure does tion through use of a touch-tone telephone other creditors or by a third party. It is in- not apply to any listing of a temporary rate or similar device, so long as accountholders tended that the toll-free number may con- on an envelope or other enclosure in which without a touch-tone telephone or similar nect accountholders to an automated device an application or solicitation is mailed. device are provided an opportunity to speak that enables them to obtain information 4. If the temporary rate can be revoked for to an individual. The FRB is charged with through the use of a touch-tone telephone or reasons other than the expiration of the in- developing charts or tables showing how long similar device, so long as accountholders troductory period, the creditor must clearly it could take to repay various balances, as- without a touch-tone telephone or similar and conspicuously disclose on or with the ap- suming the limited number of repayment as- device are provided the opportunity to speak plication or solicitation a general descrip- sumptions specified in the bill. It is intended with an individual. tion of the circumstances that may result in that the FRB, in preparing the charts or ta- FRB study. In addition, the FRB has the the revocation of the temporary rate and ei- bles, will use the same methodology as that authority to conduct a study, if it chooses to ther the fixed rate that would apply upon the used in calculating the 88-month and 24- do so, to determine the types of information revocation of the temporary rate, or in the month repayment periods set forth in the available to potential borrowers regarding case of a variable rate program, the rate that disclosures in new paragraphs (11) (A), (B) factors of notifying potential borrowers for was in effect within 60 days before the date and (C) of TILA section 127(b). The FRB credit, repayment requirements, and the of mailing the application or solicitation. Effective date. This section and any regula- charts or tables would be used for responding consequences of default. tions promulgated by the FRB to implement to accountholders who call the toll-free tele- Effective date. New section 127(b)(11) of this section will not take effect until the phone number. TILA and any regulations promulgated by later of: (A) 12 months after the date of en- A special rule is established for depository the FRB to implement section 127(b)(11) will actment of this Act; or (B) 12 months after institutions with total assets not exceeding not take effect until the later of: (A) 18 the publication of final regulations by the $250 million. Under this special rule, such de- months after the date of enactment of this FRB. pository institutions are not required to Act; or (B) 12 months after the publication of comply with the toll-free number provision final regulations by the FRB. Section. 1404. Internet-based credit card solicita- tions described above. Instead, such depository in- Section 1402. Enhanced disclosure for credit ex- stitutions are required to furnish a toll-free tension secured by a dwelling This section requires that the existing number which the FRB shall establish and TILA credit card application and solicitation This section adds a new disclosure that disclosures must be made in connection with maintain itself, or have established and must be made by creditors who make either maintained by a third party, for a period not a solicitation to open a credit card account open-end or closed-end loans to consumers if via the Internet. It also requires that the to exceed 24 months following the effective those loans are secured by the consumer’s date of this Act. Once the FRB (or third new introductory rate disclosures required principal dwelling. This section provides under section 1603 of this Act must be made party) no longer maintains the toll-free tele- that, in connection with credit applications phone number, depository institutions with in connection with Internet solicitations, as and credit advertisements for such loans, the applicable. All disclosures required under total assets not exceeding $250 million shall creditor must disclose to the consumer that continue to be required to furnish a toll-free this section must be made in a clear and con- if the loan exceeds the fair market value of spicuous manner. The disclosures must be telephone number under this Act. the dwelling, the interest on the portion of Disclosures for creditors subject to FTC readily accessible to consumers in close the credit that exceeds the fair market value enforcement under TILA. Creditors subject proximity to the solicitation to open a credit is not tax deductible for federal income tax to FTC enforcement under TILA would be re- card account, and updated regularly to re- purposes and that the consumer may want to quired to include the same minimum pay- flect the current policies, terms, and fee consult a tax advisor for further information ment disclosure as financial institutions who amounts applicable to the credit card ac- regarding the deductibility of interest and require minimum payments in excess of 4% count. It is intended that the disclosures can charges. This section and any regulations of the outstanding balance. However, instead be made by allowing a consumer to use a issued by the FRB to implement this section of including a toll-free telephone number op- ‘‘link’’ or similar method to view the disclo- will not take effect until the later of: (A) 12 erated by the creditor (or third party), those sures. This section and any regulations pro- months after the date of enactment of the subject to FTC enforcement under TILA mulgated by the FRB to implement this sec- Act; or (B) 12 months after publication of the would include a toll-free telephone number tion will not take effect until the later of: final regulations by the FRB. through which accountholders could contact (A) 12 months after the date of enactment of the FTC for an estimate of the time it would Section 1403. Disclosure related to ‘‘introductory this Act; or (B) 12 months after the publica- take to repay the accountholder’s out- rates’’ tion of final regulations by the FRB. standing balance. In responding to This section mandates new disclosures re- Section 1405. disclosures related to late payment accountholder calls made to the toll-free garding introductory rates on open-end cred- deadlines and penalties number, the FTC will use the same repay- it card accounts if those rates will be in ef- This section requires that each monthly ment charts or tables developed by the FRB. fect for less than 1 year (‘‘temporary rates’’). billing statement sent to credit cardholders Additional flexibility. In order to provide This section provides that an application or and other open-end credit borrowers must in- added flexibility in making the new disclo- solicitation to open a credit card account clude a new disclosure if a late payment fee sures, new paragraph (11)(D) allows a cred- which is described in section 127(c)(1) of will be imposed on the borrower for failing to itor to use its own repayment example rath- TILA must comply with the following re- make the minimum payment by the pay- er than those specified in subparagraphs (A), quirements if the account offers a temporary ment due date. In such cases, the monthly (B) or (C) provided that the creditor’s exam- rate: billing statement must clearly and conspicu- ple is based on an interest rate greater than 1. Each time the temporary rate appears in ously state the date that the payment is due 17%. the written materials, the term ‘‘introduc- or, if the card issuer contractually estab- Exemptions from new disclosure require- tory’’ must appear clearly and conspicuously lishes a different date, the earliest date on ments. The new section 127(b)(11) does not in immediate proximity to the rate itself. which (or time period in which) a late pay- apply to charge card accounts provided that 2. If the rate that will apply after the tem- ment fee may be charged and the amount of the primary purpose of such accounts is to porary rate expires will be a fixed rate, the the late payment fee to be imposed if pay- require payment of charges in full each creditor must disclose the time period in ment is made after that date (or time pe- month. which the introductory period will expire riod). This section and any regulations pro- Disclosures for creditors providing actual and the annual percentage rate that will mulgated by the FRB to implement this sec- number of months to repay balance. Under apply after the end of the introductory pe- tion will not take effect until the later of: new section 127(b)(11)(J), a creditor is not riod. This disclosure must be made clearly (A) 12 months after the date of enactment of subject to new sections 127(b) (11)(A) or (B) if and conspicuously in a prominent location this Act; or (B) 12 months after the publica- the creditor maintains a toll-free number closely proximate to the first listing of the tion of final regulations by the FRB.

VerDate 06-DEC-2000 03:36 Dec 08, 2000 Jkt 089060 PO 00000 Frm 00061 Fmt 4624 Sfmt 0634 E:\CR\FM\A07DE6.095 pfrm02 PsN: S07PT1 S11724 CONGRESSIONAL RECORD — SENATE December 7, 2000 Section 1406. Prohibition on certain actions for bipartisan issue. Regrettably, however, The evidence shows that abusive fil- failure to incur finance changes this modest and sensible idea—the idea ings are the exception, not the rule. This section prohibits a creditor under an that we should close the loopholes that The median income of the average open-end consumer credit plan from termi- a small number of people were using to American family filing for a chapter 7 nating an account of a consumer prior to its game the system—has been warped bankruptcy is just above $20,000 per expiration date (e.g., expiration of the card into legislation that goes far beyond in the case of a credit card account) solely year, according to the General Ac- because the consumer has not incurred fi- its original purposes. counting Office. The majority of people nance charges on the account. This provision The process that created this con- who file for bankruptcy are single makes it clear, however, that the creditor ference report was highly partisan and women who are heads of households, el- may terminate the account if it is inactive highly unusual. Its provisions were derly people trying to cope with med- for three or more consecutive months. New drafted by one party meeting in secret, ical costs, again people who have lost section 127(h) of TILA and any regulations with no formal input from members of their jobs, or families whose finances promulgated by the FRB to implement new the Democratic Party. Indeed, no for- have been complicated by divorce. section 127(h) will not take effect until the mal conference was ever held. Instead, For the most part, we are talking later of: (a) 12 months after the date of en- at the last minute the majority found actment of this Act; or (b) 12 months after about working people or elderly people a stalled Department of State author- on fixed incomes, who through no fault the publication of final regulations by the ization bill that was being managed by FRB. of their own have fallen on hard times Senators who were sympathetic to Section 1407. Dual use debit card and need the protection of bankruptcy their version of the bankruptcy bill to help put their lives back together. It This section permits the FRB to conduct a and they performed a legislative bait study of existing consumer protections, in- is also worth noting that last year, the and switch. They deleted every word cluding voluntary industry rules, that limit per capita personal bankruptcy rate from the Department of State bill and the liability for consumers when a con- dropped by more than 9 percent, and then inserted every word of their bank- sumer’s ATM card or debit card is used to ac- again this year the bankruptcy rate cess the consumer’s asset account without ruptcy bill. Now the Senate is being asked to has dropped. the consumer’s authorization. The impact that this legislation vote on a so-called Department of Section. 1408. Study of bankruptcy impact of would have on single-parent households credit extended to dependent students State authorization bill that contains not a word about the Department of is particularly disturbing to me. Single This section directs the FRB to conduct a parents have one of the hardest jobs in study regarding the impact that the exten- State. The Department of State bill is sion of credit to certain students has on the nothing but an empty vessel into which America. Most work all day, cook rate of bankruptcy. Specifically, the study a so-called ‘‘compromise’’ bankruptcy meals, keep house, help their children must examine the bankruptcy impact of ex- bill has been poured. But we have to be with homework, and schedule doctors’ tending credit to consumers who are claimed careful here—the word ‘‘compromise’’ appointments, parent-teacher meet- as a dependent by their parents or others for doesn’t mean what it used to mean, ings, and extracurricular activities. federal tax purposes and who are enrolled what it normally means in the legisla- Life isn’t easy for working single par- within 1 year of successfully completing all tive process. This isn’t a compromise ents and often the financial assistance required secondary education requirements they receive in the form of alimony or on a full-time basis in post-secondary edu- between the two Houses of Congress. cational institutions. The results of the This isn’t a compromise between the child support is critical to keeping study must be reported to Congress within 1 two parties. This compromise bill is their families from falling into pov- year after the date of enactment of the Act. the result of negotiations among like- erty. I believe that the conference re- Section 1409. Clarification of clear and con- minded men and women of the same port before the Senate would frustrate spicuous political party. This is a majority-only the efforts of single-parent families to This section directs the Board, in consulta- bill. There has been no meaningful collect support payments. tion with other federal banking agencies, the compromise at all. I understand that the proponents of National Credit Union Administration and Aside from the procedural problems this bill believe that they have treated the FTC, to promulgate regulations, includ- with how this bill has been handled, I single-parent families fairly. But what ing examples of model disclosures, to provide have deep and serious concerns about I am worried about is the unintended— guidance regarding the meaning of ‘‘clear the substance of this legislation. but perfectly foreseeable—con- and conspicuous’’ as used in sections This legislation will unintentionally sequences of allowing more debts to 127(b)(11)(A), (B) and (C) and 127(c)(6)(A)(ii) and (iii) of TILA as added by this Act. injure honest hard-working Americans survive bankruptcy. who have fallen on hard times through For more than 100 years, the Bank- TITLE XV—GENERAL EFFECTIVE DATE; APPLICATION OF AMENDMENTS no fault of their own. The reason that ruptcy Code has given women and chil- Section 1501. Effective date; application of we have a Bankruptcy Code is because dren an absolute preference over all amendments. life sometimes deals people a bad hand others who have claims on a debtor’s The amendments made by the Act take ef- and we believe that it’s important to estate. Under the well-established rule, fect 180 days after the date of enactment, ex- give people a fresh start—an oppor- if a divorced person files for bank- cept as provided elsewhere in the Act. These tunity to overcome the financial mis- ruptcy, the court doesn’t require that amendments apply only with respect to cases fortunes that have struck them. This person’s ex-spouse or children to com- commenced after the effective date. principle is so fundamental that the pete with creditors for the funds need- Mr. HATCH. Thank you. We are in Constitution expressly lists the estab- ed to pay child support and alimony. agreement on what this legislation lishment of uniform bankruptcy laws Instead, alimony and child support are does. as a congressional responsibility. It taken out of the debtor’s monthly in- Mr. DODD. Mr. President, I rise seems that the Framers understood come first and if there is anything left today to speak about the Bankruptcy that society is better off if we find an over, it is made available to commer- Reform Conference Report that is orderly way to allow people to pay off cial creditors. If there is nothing left being considered by the Senate. Let me their debts to the degree possible, and over, then the commercial or consumer start by noting that there is strong op- then get back on their feet as produc- debts are discharged and the debtor’s position to this bill—in its current tive citizens. Regrettably, that prin- only remaining obligation is to the ex- form—by consumer advocacy groups ciple seems to suffer at the hands of spouse and children. such as the National Women’s Law this conference report. This conference report would change Center, the Association for children for Evidence suggests that the vast ma- the rules. For the first time, it would Enforcement of Support, and the Con- jority of people who file for bankruptcy make credit card and other consumer sumer Federation of America. do so because some financial crisis be- debts essentially nondischargable. So, This conference report is an illustra- yond their control has plunged them while a divorced spouse would still be tion of what happens when a sound idea into debt that they cannot avoid. Peo- obliged to pay alimony and child sup- is submitted to an unsound process. ple file for bankruptcy because they’ve port, his or her other unsecured debts The idea of reforming the Bankruptcy lost their jobs or because a child needs would remain intact. Code to stop obvious abuses was an medical care that is not covered by in- Proponents of this bill say this does idea that had broad support. It was a surance. no harm to divorced spouses and their

VerDate 06-DEC-2000 03:36 Dec 08, 2000 Jkt 089060 PO 00000 Frm 00062 Fmt 4624 Sfmt 0634 E:\CR\FM\A07DE6.097 pfrm02 PsN: S07PT1 December 7, 2000 CONGRESSIONAL RECORD — SENATE S11725 children because ex-spouses are still at restore some balance to our bank- cent of the national median income, the front of the collections line. But ruptcy code is not controversial. who are largely exempted from the there is a huge practical difference be- The legislation before us today does means test. tween being first in line and being the indeed tighten current law. It assures Compared to current law, this legis- only one in line. Under current law, that those who have the ability to lation provides increased protections nonsupport debts are often discharged pay—but only those with the ability to against creditors who try to abuse the and debtors can focus entirely on meet- pay—will have to complete at least a reaffirmation process. This bill also ing their obligations to their children partial repayment plan. This funda- imposes new requirements on credit and ex-spouses. If this conference re- mental change will affect probably card companies to explain to their cus- port becomes law, that will change— fewer than 10 percent of the people who tomers the implications of making debtors will not be able to focus on file for bankruptcy, and only those who minimum payments on their bills their children, they will—as a matter have the demonstrated ability to pay. every month. of law—have to divert limited financial I would bet, that most of our con- And a feature of this legislation that resources to pay back consumer credi- stituents would be surprised to find I think deserves much more emphasis tors. that is not the case today. Today’s is its historic improvement in the I believe that this change will inevi- code makes no clear distinction be- treatment of family support pay- tably lead to conflicts between com- tween those who have the income to ments—child support and alimony. mercial creditors and single parents pay some of their debts and those Compared to current law, there are nu- who are owed support and alimony pay- whose only recourse is to sell off what- merous specific new protections for ments. Sure, they will be first in line, ever assets they have to pay their those who depend on those payments. but single parents will be competing creditors. The bill before us corrects The improvements are so important with large creditors. Creditors, I might that basic flaw. that they have the endorsement of the add, who are well-represented by teams I am convinced that flaw has a lot to National Child Support Enforcement of lawyers. do with the fact that bankruptcy fil- Association, the National District At- I believe that it is a mistake to make ings have been at record levels in re- torneys Association, and the National single parents compete with teams of cent years, in spite of the strongest Association of Attorneys General. lawyers for the money they need to economy we have ever enjoyed. And— These are the people who are actu- feed and clothe and educate their chil- contrary to some of the assertions we ally in the businesses of making sure dren. have heard recently, those filings are that family support payments are I understand the perspective that not going down. After a leveling off, made. One passage from a letter sent to members of the Senate Judiciary Com- says that all debts should be paid—but following interest rate reductions a mittee deserves repeating here, Mr. when debtors simply cannot pay all of couple of years ago that made credit President. Referring to the very real their debts, then I believe that our easier, the latest statistics show a re- advantages which this legislation laws should protect the interests of vival in the record wave of bankruptcy would provide to the women and chil- children and families first. Under this filings in recent months. The problem dren who depend on those support pay- legislation, a child support payment has not gone away—and the growing ments, they say that, and I quote ‘‘de- could very well be reduced in order to evidence of a slowing economy means satisfy an unsecured commercial cred- feat of this legislation based on vague we should expect even more filings in itor. In my view, that change would and unarticulated fears’’ would be the coming months. ‘‘throwing out the baby with the place the well-being of a child at a dis- The fact is, Mr. President, that we advantage and elevate the status of the bathwater.’’ have before us legislation that is the I think this last line from the letter unsecured creditor. result of weeks of debate and amend- Low-income children and families deserves special stress: ‘‘No one who ment here on the Senate floor last will be put at a practical disadvantage has a genuine interest in the collection year. Although we could not convene a by this bill and will ultimately suffer of support should permit such inex- formal conference, further bipartisan greater economic deprivation because plicit and speculative fears to supplant they cannot afford to compete with so- discussions continued this summer, in- the specific and considerable advan- phisticated creditors. cluding the direct participation of the tages which this reform legislation pro- Mr. President, Congress should re- White House. I ask my colleagues to vides to those in need of support.’’ form the Bankruptcy Code, but we need consider how closely the legislation be- Mr. President, I can think of no to do so in a responsible and effective fore us today matches the letter and stronger rebuttal to the arguments we and fair way. In my opinion, this con- the spirit of the bill that had such have heard recently about the supposed ference report—even though it was overwhelming support earlier this effects of this legislation on the women well-intentioned—has not answered year. and children who depend on alimony this call. I also strongly urge the President to and child support. Mr. BIDEN. Mr. President, today we reconsider his threat to veto this legis- Finally, Mr. President, I want to reach a point that has been far too long lation, that contains many provisions briefly address two issues that have in coming: a vote on final passage of that are the product of direct negotia- been raised by the President, and by bankruptcy reform. Just two days ago, tions with his White House. I know opponents of this legislation. I hon- the Senate voted overwhelmingly—67 that important voices in his adminis- estly believe that compared to the to 31—to end debate on this legislation. tration continue to support bank- many substantial victories for Senate I expect the same strong endorse- ruptcy reform, and I hope that he will positions, those two issues fall far ment in today’s vote. heed their advice. short of justifying a change in the For reasons that we are all aware of, We still have a strong safe harbor, to overwhelming support bankruptcy re- it has been a prolonged and com- protect families below the median in- form has received in the last two ses- plicated process that has brought us to come, along with adjustments for addi- sions of Congress. this point today. In one of our very tional expenses that will assure that First, there is the issue of the home- first votes this year, the Senate passed only those with real ability to pay will stead cap. One of the most egregious bankruptcy reform legislation by the be steered from Chapter Seven to Chap- examples of abuse under current law is overwhelming margin of 83 to 14. Simi- ter 13. Senate language, that gives the ability of wealthy individuals, on lar legislation passed the House last judges the discretion to determine the eve of filing for bankruptcy, to year, 313 to 108. I personally believe whether there are special cir- shelter income from legitimate credi- that we should not have waited for leg- cumstances that justify those ex- tors by buying an expensive house in islation that passed both Houses by penses, prevailed over stricter House one of the handful of states that have overwhelming margins, many months language. an unlimited homestead exemption in ago, to finally reach the floor of the Beyond that, the Senate-passed safe bankruptcy. Senate in the last hours of this session. harbor provision has actually been It is one of the most egregious For vast, bipartisan majorities of strengthened, with additional protec- abuses, Mr. President, but it is actu- both houses, the idea that we need to tion for those between 100 and 150 per- ally pretty rare, involving only a very

VerDate 06-DEC-2000 03:36 Dec 08, 2000 Jkt 089060 PO 00000 Frm 00063 Fmt 4624 Sfmt 0634 E:\CR\FM\A07DE6.020 pfrm02 PsN: S07PT1 S11726 CONGRESSIONAL RECORD — SENATE December 7, 2000 few of the millions of bankruptcies penalties she was assessed were not dis- Debtors should not be able to avoid that have been filed in recent years. chargeable. their obligations by funneling money Nevertheless, it is an abuse that should Mr. President, the Congressional Re- into extravagant estates. The Con- be eliminated. Senator KOHL and Sen- search Service, as of October 26, con- ference Report lets this egregious prac- ator SESSIONS have been the leaders in ducted an exhaustive, authoritative tice continue. the Senate on this. They are the reason search which, and I quote: ‘‘did not re- Second, I am proud to be an original why the Senate included a strong pro- veal any reported decisions where such cosponsor of Senator Schumer’s vision—a ‘‘hard cap’’ of $100,000 on the liability was discharged under the U.S. amendment to prevent anti-abortion value of a home that could be exempt Bankruptcy Code.’’ extremists from using bankruptcy laws from creditors in bankruptcy. So the current bankruptcy statute— to avoid paying civil judgements That provision is not in the bill be- and the most recent case law on this against them. The Senate passed the fore us today, Mr. President, but the point—all say that the Schumer Schumer amendment by an over- worst abuse—the last-minute move to Amendment is not needed. That is to whelming 80–17 vote. It protects a shelter assets from creditors—has been take nothing away from the hard work woman’s right to choose and the ongo- eliminated. To be eligible for any and dedication of my friend and col- ing effectiveness of the Freedom of Ac- state’s homestead exemption, a bank- league on the Judiciary Committee, or cess to Clinic Entrances, FACE, Act. ruptcy filer must have lived in that to minimize the frustration and out- The FACE Act has led to successful state for the last two years before fil- rage many Americans feel at the an- criminal and civil judgements against ing. If you buy a home within two nounced attempts to abuse the bank- groups that use intimidation and out- years of filing, your exemption is ruptcy code. It is simply to say that right violence to prevent people from capped at $100,000. That is a huge im- the women who use and who operate obtaining or providing reproductive provement over current law. family planning clinics are not without health services. I am deeply dis- So I say to my colleagues: if you recourse, and not without the full pro- appointed that the Conference Report want to eliminate the worse abuse of tection of the law, under the current has omitted this important provision. the homestead exemption, then you bankruptcy code. Third, I had hoped that the Con- will vote for the conference report be- I repeat, Mr. President: no one has ference Report would work to improve fore us today. escaped liability under the Fair Access the limited consumer credit card pro- That brings us to the last of the to Clinics Entrances Act through an tections in the Senate bill. Unfortu- major issues—one that we have come abuse of the bankruptcy code. No one. nately, the Conference Report has gone to call the Schumer Amendment, be- So, Mr. President, we will vote today the other way—consumer protections cause of the energy and dedication of on a conference report that has a have been deleted. For example, the my friend and colleague from New strong Senate stamp on it, that con- Senate passed an amendment by Sen- York. tains important victories for Senate ator BYRD that would have required We all know of the confrontations— positions, victories that make the bill any credit card solicitation on the sometimes peaceful, sometimes trag- in some ways fairer and more balanced Internet to be accompanied by infor- ically violent—that have occurred in than the version that passed here in mation from the Federal Trade Com- recent years between pro-life and pro- January by an overwhelming vote. mission, FTC, that gives consumers ad- choice groups over access to family While the homestead provision is not vice about selecting and using credit planning clinics. Because of the threat what I hoped it would be, I will vote for cards. The Conference Report dropped to the Constitutional rights of the peo- closing the worst aspects of the home- this provision. ple who run those clinics and their pa- stead loophole in the current code. I Additionally, the Conference Report trons, Congress passed, and President will not let the best be the enemy of deleted an amendment by Senator Clinton signed, the Free Access to Clin- the good. LEVIN that would have made it clear ic Entrances Act in 1993. That law And I will vote for this conference re- that consumers do not owe interest for makes it a crime—punishable by fines port confident that family planning on-time credit card payments. Pres- as well as imprisonment—to block ac- clinics, and the women who need and ently, many credit card solicitations cess to family planning clinics. use them, will continue to enjoy the advise consumers that interest is not Some of those who have been ar- full protection available under current charged on payments made within a rested and prosecuted under that law law. grace period (such as 25 days). How- have brazenly announced that they I urge my colleagues to join me. ever, in the fine print, these agree- plan to file for bankruptcy, to escape Mrs. FEINSTEIN. Mr. President, I ments state that if the entire debt is the consequences of their crimes—spe- support bankruptcy reform, and I voted not paid back, the cardholder is liable cifically, to avoid paying damages. in favor of the Senate bankruptcy bill, for interest on the full amount Some of these individuals have in fact this past February. Simply put, people charged. Say $995 is paid off of a $1,000 filed for bankruptcy. who can afford to repay their debts, credit debt, most people reasonably as- But in no case—in no case that I am should repay their debts. sume that they owe interest on just the aware of, Mr. President, or that the However, I cannot support the unpaid $5. Not so. The credit card com- Congressional Research Service has version of bankruptcy legislation out- pany will charge consumers interest been able to find—has any individual lined in the Conference Report to H.R. retroactively on the full $1,000. This escaped a single dollar’s liability by fil- 2415. The Conference Report has important amendment would have ing for bankruptcy. Not a dollar, not a dropped key provisions from the Sen- brought interest charges in line with dime, not a penny. It hasn’t happened, ate-passed bankruptcy bill, and has consumer expectations. and it won’t happen. The reason is sim- failed to protect consumers against ir- When analyzing legislation, it is ple: current bankruptcy already states responsible creditor practices. Thus, I often telling to review the opinions of that such settlements—for ‘‘willful and intend to vote ‘‘No’’. those groups with no financial stake in malicious’’ conduct—are not discharge- Let me recount my concerns. the outcome. Overwhelmingly, the non- able in bankruptcy. First, the Conference Report lets partisan experts on bankruptcy—the If that were not enough, current case wealthy individuals continue to pur- judges, trustees, and academics—have law supports a very strong reading of chase multimillion dollar homes that expressed serious concerns or opposi- that provision of current law. When are shielded from creditors’ bank- tion to this bankruptcy bill. These or- one clinic demonstrator—who violated ruptcy claims. The Senate bill curbed ganizations include the National Bank- a restraining order—attempted to have this abuse, voting 76–22 to approve the ruptcy Conference, NBC, the National the settlement against her wiped out in Kohl amendment placing a $100,000 na- Conference of Bankruptcy Judges, bankruptcy, her claim was rejected out tionwide cap on homestead exemptions. NCBJ, the National Association of of hand. The violation of a restraining The Conference Report replaced the Chapter 13 Trustees, NACTT, the Na- order setting physical limits around a Kohl amendment with a two-year own- tional Association of Bankruptcy clinic has been ruled to be ‘‘wilful and ership or residency requirement that Trustees, NABT, and law professors malicious’’ under the current code. The wealthy debtors can easily sidestep. from many of our nation’s law schools.

VerDate 06-DEC-2000 04:30 Dec 08, 2000 Jkt 089060 PO 00000 Frm 00064 Fmt 4624 Sfmt 0634 E:\CR\FM\G07DE6.092 pfrm02 PsN: S07PT1 December 7, 2000 CONGRESSIONAL RECORD — SENATE S11727 On October 30, 2000, for example, 91 law around in the bankruptcy numbers. tors. The Conference Report would de- professors wrote to me that the ‘‘bill is However, the current decline came lete the Senate amendment that pro- deeply flawed,’’ and will not achieve about without Congressional interven- vided a firm homestead cap of $100,000 balanced reform. The professors state tion, demonstrating that to some de- and instead allow wealthy debtors to that ‘‘. . . the problems with the bank- gree, free-market forces work to cor- retain expensive homes while filing for ruptcy bill have not been resolved, par- rect any over-use of the bankruptcy bankruptcy, so long as the debtor ticularly those provisions that ad- system. The reason is that lenders and owned the property for two years be- versely affect woman and children.’’ credit card companies, in an effort to fore the bankruptcy filing. Because Congress should also take note that, maximize their profits, can and do re- wealthier debtors would have no dif- after soaring to record levels in the spond to an unexpected increase in per- ficulty tying up their creditors for a mid-1990s, bankruptcy filings declined sonal bankruptcies by curtailing new relatively short period of time, the in recent years. In 1998, bankruptcy fil- lending to consumers who are credit two-year residency requirement would ings totaled 1,442,549. In 1999, bank- risks. However, there are still those have no real effect on debtors moving ruptcy filings totaled 1,319,540 cases, a who will game the system, and we to states with unlimited homestead decline of almost 10 percent from the should narrowly craft legislation to ad- amounts to take advantage of this previous year. dress such abuse. Unfortunately, this loophole. The bill changes nothing, as A final note, Mr. President. When the bill fails to take a balanced approach long as the well-counseled debtor 107th Congress convenes, the Senate to bankruptcy reform. I had hoped that makes his homestead purchase at least will be evenly divided for the first time through a legitimate legislative proc- 24 months before filing. But, the 24- in over a century. If we are to govern, ess we would arrive at a compromise month rule unfairly differentiates be- to conduct the nation’s business, we that would have ended the abuses but tween consumers who are sophisticated have to be able to work across party still provided our most vulnerable citi- enough to plan in advance for home- lines. The bankruptcy Conference Re- zens with adequate protections. This stead protection and which are not. port we are considering this afternoon bill does just the opposite: It harms The whole point of bankruptcy re- is a case study of how not to govern. those who most need bankruptcy pro- form is to create accountability for There was no conference; this report tection and protects those who don’t. both creditors and debtors. The first emerged as the product of negotiations For instance, the bill’s safe harbor will part of that equation is missing en- held exclusively between House and not benefit individuals in most need of tirely in H.R. 2415. At the same time, Senate Republicans. Maybe if they had help. Because the safe harbor is based the bill fails in any way to impose any consulted with the minority, they on the combined income of the debtor restrictions on these industries with could have fashioned a bill the minor- and the debtor’s spouse, many single regard to the way they provide credit ity could support. But they didn’t. mothers who are separated from their to those who can least afford to incur They deliberately excluded us. The re- husbands and who are not receiving a great deal of debt. The bill does not sult is a Conference Report the Presi- child support will not be able to take require important specific disclosures dent has vowed to veto. advantage of the safe harbor provision. on monthly credit card statements Bankruptcy reform requires a bal- In other words, a single mother who is that would show the time it will take anced bill that is fair to both debtors being deprived of needed support from to pay a balance and the cost of the and creditors. This bill doesn’t measure a well-off spouse is further harmed by credit if only minimum payments are up. I intend to vote no on passage of this bill, which will deem the full in- made. This type of disclosure was in- the Conference Report to H.R. 2415. I come of that spouse available to pay cluded in the legislation passed by the hope that Congress will revisit bank- debts for the safe harbor determina- Senate in 1998 and should be part of ruptcy reform in the 107th Congress, tion. Moreover, the bill jeopardizes the any reform bill. The conference report and work in a bipartisan way to ad- post-bankruptcy collection of child also excludes Senate-passed amend- dress known abuses in our bankruptcy support. By creating many new types ments that would have provided credit laws. of nondischargeable debts in favor of Mr. KERRY. Mr. President, I strong- credit card companies, the bill would information in electronic credit card ly believe that reform of our bank- place banks in direct competition with applications over the Internet and pro- ruptcy laws is necessary. During the single parents trying to collect child tections against finance charges being 105th and 106th Congress, I supported support after bankruptcy. In addition, imposed on credit card payments made legislation to reform bankruptcy laws the bill gives creditors new levers to within the creditor-provided grace pe- and end the abuse of the system. How- coerce reaffirmations, in which debtors riod. It also does nothing to discourage ever, I am unable to support the con- must agree to pay back debts that oth- lenders from further increasing the ference report of the Bankruptcy Re- erwise would have been discharged, so debt of consumers who are already form Bill because I believe it is unfair that those debts also will compete with overburdened with debt. and unbalanced, was completed with- child support obligations. Finally, the I am also very disappointed that the out appropriate consideration by the claim of the bill’s sponsors that it conference report does not include an Minority party, and is unfair to many ‘‘puts child support first’’ is an exam- amendment offered by Senator COLLINS working families and single mothers. ple of the worst kind of Washington and myself, which was included in the Sponsors of bankruptcy reform have cynicism. Although the bill moves Senate bill, that would make Chapter justified the legislation by arguing child support claims from seventh to 12 of the Bankruptcy Code, which now that the bill is necessary because we first priority in Chapter 7 cases, the applies to family farmers, applicable are in the midst of a ‘‘bankruptcy cri- provision is virtually meaningless be- for fishermen. I believe that this provi- sis.’’ I am among those who believe cause almost no Chapter 7 cases in- sion would have made bankruptcy a that, too often, bankruptcy is used as volve any distribution of assets to more effective tool to help fishermen an economic tool to avoid responsi- creditors. Few debtors have any assets reorganize effectively and allow them bility for unsound decisions and reck- to distribute to priority unsecured to keep fishing while they do so. less spending. There has been a decline creditors after secured creditors re- Finally, this bill is the result of a in the stigma of filing for bankruptcy, ceive the value of their collateral. conference process that was a sham. In and appropriate changes are necessary Therefore, this change would affect October, the House appointed conferees to ensure that bankruptcy is no longer fewer than 1 percent of cases. On the for the Bankruptcy Reform Act and considered a lifestyle choice. However, other hand, the conference report pro- without holding a conference meeting, I must point out that the current num- tects wealthy debtors by allowing them the Majority filed a conference report bers show that the bankruptcy rate is to use overly broad homestead exemp- striking international security legisla- lower than it was when the bill was tions to shield assets from their credi- tion and replacing it with a reference first introduced. Indeed, if the bank- tors. The homestead exemption has to a bankruptcy reform bill introduced ruptcy reform act had been enacted been used by wealthy individuals to earlier that same day. This makes a into law, the sponsors would undoubt- shelter millions of dollars in expensive mockery of the legislative process and edly now be taking credit for this turn- homes to avoid repaying their credi- demeans the United States Senate. I

VerDate 06-DEC-2000 03:36 Dec 08, 2000 Jkt 089060 PO 00000 Frm 00065 Fmt 4624 Sfmt 0634 E:\CR\FM\G07DE6.048 pfrm02 PsN: S07PT1 S11728 CONGRESSIONAL RECORD — SENATE December 7, 2000 am hopeful that during the 107th Con- by perpetrators of violence against ment would have ensured that per- gress, we can develop bipartisan legis- women. Protecting access to reproduc- petrators of clinic violence, who in- lation that would encourage responsi- tive health clinics and providers is not curred debt as a result of unlawful bility and reduce abuses of the bank- an abortion issue, but a women’s acts, could not discharge that debt in ruptcy system. health and safety issue. bankruptcy proceedings. Mrs. MURRAY. Mr. President, I come Violent anti-choice groups provide I am also concerned that the Senate- to the floor today to express my dis- legal assistance to violent protesters passed proposal to curb debtor abuse by appointment with the Bankruptcy Con- on how to use the Code to protect their closing the homestead loophole was ference Report. I reluctantly will be assets against possible financial liabil- weakened in conference. The home- voting no on the final conference ity. Their criminal debts are simply ex- stead loophole permits debtors in cer- agreement because it fails the fairness cused under the current Code. This tain states to shield luxurious homes, test and because it fails to protect the conference report fails to close that while shedding thousands of dollars of most vulnerable families facing dire fi- loophole. The Schumer amendment was debt in bankruptcy. The Senate passed nancial times. adopted on an 80 to 17 vote, but the an amendment to create a $100,000 na- I have supported bankruptcy reform final conference agreement simply tionwide cap on the homestead exemp- in the past. I continue to support fair dropped this bipartisan anti-violence tion, thus closing the loophole. The and balanced reforms to prohibit the amendment. conference report still allows for such misuse of the bankruptcy code and to We know that this conference report abuse of the system so long as the ex- prohibit individuals from using the will be vetoed and has little or no pensive home was purchased two years code as a shield against honoring their chance of becoming law. The decision in advance of the bankruptcy filing. financial commitments. We need re- to push this through in a partisan man- This provision allows sophisticated form because we all pay for the abuses. ner has jeopardized bankruptcy reform. debtors with the resources to plan Working families struggling with the As a result, working families will suf- ahead for bankruptcy to game the sys- cost of credit deserve reform. Families fer. I am hopeful that with the new tem. trying to save to purchase their first Congress and the need to work in a bi- Furthermore, I am disappointed with home cannot afford the added burden partisan manner we will see real bank- the unusual legislative process the ma- forced on them due to abuse of our ruptcy reform in the next Congress. I jority used to file this conference re- bankruptcy laws. will continue to work for reform that port. The bill before us today, H.R. Unfortunately, the final product pre- is balanced, fair and that protects 2415, was originally introduced as the sented to the Senate is unacceptable. women against violence and intimida- American Embassy Security Act. Last In an attempt to prevent a fair and tion. I want reform, but not at the ex- August, when the Senate passed this open debate, this conference report has pense of women or children. legislation and requested a conference bypassed the normal legislative proc- Mr. President, I hope all of my col- with the House, it dealt with State De- ess, and Senators have been denied the leagues will honor the mandate we all partment and international security opportunity to improve the legislation. received in the election. The American matters. More than a year later, the Clearly this conference report has been people did not give one party or one House appointed conferees, stripped the driven by special interests and not the philosophy a mandate to govern. They international security provisions from interests of working families. It does want a bipartisan Congress that will the bill and replaced them with a not ensure that mothers and children put aside political bickering and spe- version of a bankruptcy reform bill. who depend on child support and ali- cial interest and work to solve the That is the wrong way to legislate. mony payments won’t lose out to big problems facing real people and real Mr. President, I believe that bank- special interests. It does not require families. ruptcy reform could have been resolved any responsible actions by credit card Mr. LEVIN. Mr. President, earlier in in a fair and bipartisan way. Unfortu- companies in educating or informing the year, when the Bankruptcy Reform nately, it was not handled in this way consumers to the cost of debt. bill was before the Senate, I voted in and so I cannot lend my support to the This conference report is vastly dif- favor of the bill. I said at the time that bill. ferent from the bill that passed the ‘‘over the course of debate, the Senate Mr. ROBB. Mr. President, throughout Senate in March. I supported that bill. adopted more than 40 amendments, my career I have been a staunch advo- The conference report before us, how- making this a more reasonable ap- cate for fiscal responsibility, believing ever, will make it impossible for fami- proach to bankruptcy reform.’’ How- that as a government we should make lies to seek bankruptcy protection ever, I also said that ‘‘should this legis- every effort to pay our own way and when they are hit with overwhelming lation come back from conference . . . not leave our debts to our children. financial problems often caused by without the modest amendments we That same principle of fiscal responsi- events beyond their control. In many adopted in the Senate, I will consider bility compelled me to be an early co- cases, families are forced into bank- opposing the bill at that time.’’ sponsor of the bankruptcy reform bill. ruptcy due to unexpected medical bills The bill before us is one I cannot sup- I believe that, whenever possible, indi- caused by a disabling accident or con- port. The negotiators who worked out viduals should take personal responsi- dition. Many women are forced into the differences between the Senate and bility for debts that they incur and pay bankruptcy due to the break up of House passed versions of the bill, de- what they owe. their family and their inability to col- leted or weakened many of the provi- Under our current bankruptcy sys- lect court ordered child support. These sions that were key components of the tem, debtors can be absolved of their families should not be turned away Senate-passed bankruptcy reform bill. debts even when they may have the simply because credit card companies Both of the amendments that I spon- ability to pay. I support bankruptcy re- made reckless decisions in issuing sored were deleted from the final form because I believe that if an indi- credit to individuals unable to manage version of the bill. One of those amend- vidual has the ability to repay their debt or unaware of the costs of man- ments simply required a study to de- debts, they should have an obligation aging debt. termine if credit card companies use to do so. The conference report we’re This conference report also elimi- residences or zip codes to determine considering today adheres to that basic nates the Schumer Clinic Violence credit worthiness. The other amend- principle. Amendment that I cosponsored and ment I sponsored would have prohib- While I have supported bankruptcy that I believe must be part of any re- ited credit card companies from apply- reform throughout this Congress, how- form bill. We cannot allow those who ing interest charges on the paid por- ever, I’m extremely disappointed with use violence or the threat of violence tion of a balance during a so-called how we got to this point in the process. to shield themselves from financial re- grace period. There has been a lot of talk about the sponsibilities by running to bank- Another provision that was deleted need for bipartisanship recently, but ruptcy court. Without the Schumer was Senator SCHUMER’s amendment, there is little evidence of bipartisan- amendment, the Bankruptcy Code will which passed by an enormous margin ship in the process used to develop this continue to be subject to exploitation in the Senate. The Schumer Amend- conference report. In fact, that process

VerDate 06-DEC-2000 03:36 Dec 08, 2000 Jkt 089060 PO 00000 Frm 00066 Fmt 4624 Sfmt 0634 E:\CR\FM\G07DE6.046 pfrm02 PsN: S07PT1 December 7, 2000 CONGRESSIONAL RECORD — SENATE S11729 represents the exact opposite of bipar- have shown unwavering dedication to and (2) that the Attorney General des- tisanship. The minority was locked out accomplishing the important reforms ignate one Assistant U.S. Attorney and of the deliberations completely. in this bill; and the many other mem- one FBI agent in each judicial district In addition, I’m concerned that im- bers of the Senate for their hard work as having primary responsibility for in- portant provisions that I supported and and cooperation. vestigating and prosecuting fraud in which passed overwhelmingly in the The compelling need for this reform bankruptcy. Senate were dropped in conference, is highlighted by the large number of I would like to take a moment to ac- specifically the amendment involving bankruptcy filings we have seen over knowledge a few people who have violence against abortion clinics and the past several years, which are par- worked very hard on this legislation. the amendment involving the home- ticularly troubling because they have On my staff, I particularly would like stead exemption. I continue to support occurred during a time of relative pros- to thank the Committee’s Chief Coun- those provisions, but they were not in perity for our Nation. Mr. President, sel and Staff Director, Manus Cooney, the bill I originally cosponsored. And the bankruptcy system was intended to the counsels who worked diligently on while I had hoped that those provisions provide a ‘‘fresh start’’ for those who this measure, Makan Delrahim, Rene would be included in the final package, truly need it. During the process of de- Augustine and Kyle Sampson, and staff the absence of those provisions doesn’t veloping this legislation, I have re- assistant Katie Stahl. On Senator diminish the basic proposition con- mained committed to preserving a LEAHY’s Committee staff, I want to tained in the underlying bill which bankruptcy system that will allow recognize Minority Chief Counsel caused me to lend my support to the those individuals to emerge from se- Bruce Cohen, along with counsel Ed measure in the first place. vere financial hardship. At the same Pagano. On the Administrative Over- Let me conclude by acknowledging time, I believe that individuals should sight and the Courts Subcommittee, I the help and friendship of many of take personal responsibility for their would like to thank John McMickle those who have called me or my office debts and repay them if they are able and Kolan Davis, counsels to Senator over the last few days urging me to to do so. I believe the complete elimi- GRASSLEY, and Jennifer Leach, counsel change my position on this legislation. nation of debt should be reserved for to Senator TORRICELLI, for their tire- Many of the groups and individuals those who truly cannot repay their less efforts and input. My thanks also who oppose this bill are among those debts, not for those who simply choose goes to Ed Haden and Sean Costello, with whom I most often find common not to repay. counsels to Senator SESSIONS. I also cause and have supported me strongly This bipartisan legislation, authored would like to express my gratitude to over the years. It is particularly pain- by Senators GRASSLEY and TORRICELLI, Senate Legislative Counsel, and in par- ful for me not to be able to oblige them is carefully structured to achieve an ticular I want to recognize Laura in this instance. But I made a decision appropriate balance between the rights Ayoud of that office, whose hard work in May of last year to cosponsor this and responsibilities of both debtors and made this bill a better product. With- legislation, and there have been no creditors. If enacted, it will enable out the dedication and efforts of these major substantive changes between those truly in need of a fresh start to loyal public servants, the important re- then and now that would compel me to get one, and at the same time, reform forms in this legislation would not change my position. So while I regret current law to prevent the system from have been possible. Thank you. having to say ‘‘no’’ to so many of my being abused at the expense of honest, f friends, I cannot in good conscience hard-working Americans. Mr. Presi- UNANIMOUS CONSENT turn my back on a principle which is so dent, again I would like to applaud the AGREEMENT—H.J. RES. 127 fundamental to me—the principle of bipartisan efforts of my colleagues who Mr. GRASSLEY. Mr. President, I personal responsibility. As a result, I have made this a broadly-supported bill have been asked to propound this unan- will maintain the position I have held that removes some of the abuses of the imous consent request which, I have since this bill was introduced and will current bankruptcy system while en- been told, has been approved on both vote for final passage. hancing consumer protections. Mr. HATCH. Mr. President, let me I am particularly proud of the great sides. I ask unanimous consent that imme- begin by saying that H.R. 2415 is one of strides this legislation makes in im- diately following the vote on the pas- the most important legislative efforts proving current law. The legislation in- sage of the bankruptcy legislation, the to reform the bankruptcy laws in dec- cludes my provision to prevent dead- Senate proceed to the consideration of ades. beat parents from using bankruptcy to I would like to express my thanks to avoid paying child support. It includes H.J. Res. 127, the continuing resolu- the people who have worked on this my provision to protect educational tion. I further ask unanimous consent legislation. First, I want to acknowl- savings accounts that parents and that the resolution be read a third time edge the Majority Leader, who has grandparents set up for their children and that the Senate then proceed to a worked diligently to keep this legisla- and grandchildren. And, it includes my vote on passage of the resolution, with tion on its course. Thanks to his com- provision that ensures that the retire- no intervening action or debate. The PRESIDING OFFICER. Without mitment to moving this legislation, we ment savings of teachers and church objection, it is so ordered. are in a position to eliminate the workers are given the same protection abuses in the current bankruptcy sys- in bankruptcy as everyone else. It in- f tem, while at the same time, enhance cludes my provision that prevents vio- BANKRUPTCY REFORM ACT OF consumer protections. lent criminals and drug traffickers 2000—CONFERENCE REPORT—Con- I also want to acknowledge the from taking advantage of bankruptcy tinued Ranking Member of the Senate Judici- at the expense of their victims. Specifi- The PRESIDING OFFICER. The Sen- ary Committee, Senator LEAHY, who cally, when these criminals voluntarily ator from Minnesota. has worked with me to reach agree- file for bankruptcy, my provision pro- Mr. WELLSTONE. Mr. President, ment on many of the bill’s provisions. tects victims by allowing them to how much time do I have remaining? In addition, I want to commend my move for dismissal of the bankruptcy The PRESIDING OFFICER. The Sen- colleagues, Senators GRASSLEY and case. The legislation also includes my ator from Minnesota has 2 minutes re- TORRICELLI, the Chairman and ranking provision that is designed to curb fraud maining. minority member of the Subcommittee in bankruptcy filings by putting in Mr. WELLSTONE. Mr. President, re- on Administrative Oversight and the place new procedures and providing sponding to my friend from Iowa, the Courts, respectively, for their hard new resources to enhance enforcement President has called Senators and for work in crafting this much needed leg- of bankruptcy fraud laws. My provision good reason: This is a piece of legisla- islation, and for their unrelenting com- requires (1) that bankruptcy courts de- tion that has very little balance. mitment to making the development velop procedures for referring sus- I gave the example again of LTV and passage of this bill a bipartisan pected fraud in bankruptcy schedules workers in the iron range of Minnesota process. My thanks also goes to Sen- to the FBI and the U.S. Attorney’s Of- which is going to shut down in Feb- ator SESSIONS and Senator BIDEN, who fice for investigation and prosecution ruary. One month later, there could be

VerDate 06-DEC-2000 03:36 Dec 08, 2000 Jkt 089060 PO 00000 Frm 00067 Fmt 4624 Sfmt 0634 E:\CR\FM\A07DE6.022 pfrm02 PsN: S07PT1 S11730 CONGRESSIONAL RECORD — SENATE December 7, 2000 an illness in a family, a medical bill, Mr. REID. I announce that the Sen- my good friend Senator HATCH, the the worker no longer has a job and can- ator from Louisiana (Ms. LANDRIEU) is Chairman of the Judiciary Committee not pay the mortgage. necessarily absent. for their work on this measure. They Under this piece of legislation, what The PRESIDING OFFICER (Mr. doggedly pursued this passage here would be the income that is calculated? CRAPO). Are there any other Senators today. They showed leadership and we Would it be the income of this family in the Chamber desiring to vote? made some progress. with the head of the household unem- The result was announced—yeas 70, I only wish we could have completed ployed? No. Under this bill, in order to nays 28, as follows: our work on this bill and resolved the see whether this family could file [Rollcall Vote No. 297 Leg.] remaining important issues in a way under chapter 7, you would look over YEAS—70 that I could have supported and the the past 6 months and average out the Abraham Dorgan McCain President could sign. income all the months he or she was Allard Enzi McConnell f working. But they do not have a job. Ashcroft Frist Miller Most of the people file for chapter 7 Bayh Gorton Murkowski ORDER OF BUSINESS Bennett Graham Nickles because of a major medical bill. It is 50 Biden Gramm Robb Mr. LOTT. Mr. President, I know percent. Only about 3 percent game Bingaman Grams Roberts that Senators are interested in the this system. Bond Grassley Roth Breaux Gregg Santorum schedule. Now we have a piece of legislation Brownback Hagel Sessions First, just very briefly, I want to rec- that does not ask the credit card com- Bryan Hatch Shelby ognize the achievement that has just panies to be accountable, does not do Bunning Helms Smith (NH) taken place. A lot of hard work went anything about their egregious prac- Burns Hollings Smith (OR) Byrd Hutchinson Snowe into this bill over a long period of time tices, targets the most vulnerable peo- Campbell Hutchison Specter by, of course, Senator GRASSLEY, Sen- ple, and has very little balance. This Chafee, L. Inhofe Stevens ator HATCH, Senator LEAHY, and Sen- piece of legislation should be defeated. Cleland Jeffords Thomas Cochran Johnson Thompson ator TORRICELLI. But it also took co- That is why the President is opposed to Collins Kerrey Thurmond operation from Senator WELLSTONE. it. That is why labor, civil rights, Conrad Kyl Torricelli Whether he is for it or against it, I women, children, consumer organiza- Craig Lincoln Voinovich think again it showed that when we try tions, all oppose this piece of legisla- Crapo Lott Warner DeWine Lugar we can get a final result which gets tion. I say to my colleagues, it is too Domenici Mack some 70 votes. harsh. It is without balance. I know NAYS—28 I commend all of them. there is a powerful economic constitu- This upcoming vote on the con- ency behind it, but I hope you will vote Akaka Inouye Murray Baucus Kennedy Reed tinuing resolution should be the last against it. Boxer Kerry Reid vote of the week. It will be necessary I yield the floor. Daschle Kohl Rockefeller to pass an additional continuing reso- Dodd Lautenberg Sarbanes The PRESIDING OFFICER. The Sen- lution on Friday. However, we are not ator from New Mexico. Durbin Leahy Schumer Edwards Levin Wellstone aware of any request on the other side Mr. DOMENICI. Mr. President, I rise Feingold Lieberman Wyden of the aisle for a rollcall vote. to congratulate all the Senators who Feinstein Mikulski Harkin Moynihan Tomorrow’s continuing resolution have been working on this issue and, in should carry us over until Monday or particular, the chairman who is stand- ANSWERED ‘‘PRESENT’’—1 Tuesday, and we will make further an- ing here, Senator GRASSLEY, and has Fitzgerald nouncements to update Members as to been here many times. NOT VOTING—1 the schedule for next week. Today, in an extended session, we Landrieu During this time, we will be putting will finally reform the bankruptcy laws the finishing touches on the appropria- The conference report was agreed to. of America. They are very important tions bills and a final determination on Mr. GRASSLEY. Mr. President, I because credit in America, be it from the Medicare adjustments. move to reconsider the vote. banks, from individual lenders, wher- We are working in a bipartisan way Mr. LOTT. I move to lay that motion ever, is really the heartbeat of what and in a bicameral way with the ad- on the table. makes us tick and permits us to give ministration. our citizens material means. Without The motion to lay on the table was agreed to. We hope to be able to finish the busi- credit, things do not work in America. ness for the year and for this Congress Every now and then, we have to fix Mr. GRASSLEY. Mr. President, I before the end of next week. It will the bankruptcy laws so they work in want to thank all of the people who take a lot more work, but we are mak- behalf of not only the debtors but the helped get this bill passed. ing some progress in that direction. creditors of America. That is what we Senator HATCH, Senator SESSIONS, are doing here. I think it will pass Senator TORRICELLI, and Senator BIDEN f have all been very helpful. I thank overwhelmingly. MAKING FURTHER CONTINUING them publicly for their hard work. I My thanks to those who have worked APPROPRIATIONS FOR THE FIS- even want to thank Senator LEAHY. I so hard on it. I cannot claim to be one CAL YEAR 2001 of them. also want to thank the staff who have Again, Senator CHUCK GRASSLEY has been helpful: Makan Delrahim and The PRESIDING OFFICER. Under great persistence, and this is a tribute Renee Augustine of Senator HATCH’s the previous order, the Senate will pro- to him and a good start to his chair- staff; Ed Haden and Brad Harris of Sen- ceed to the consideration of H.J. Res. manship of the Finance Committee. ator SESSION’s staff; Jennifer Leach of 127, which the clerk will report. I yield the floor. Senator TORRICELLI’s staff; Jim Greene The legislative clerk read as follows: Mr. GRASSLEY. I ask for the yeas of Senator BIDEN’s staff; Kolan Davis A joint resolution (H.J. Res. 127) making and nays. and John McMickle of my staff. I also further continuing appropriations for the fis- The PRESIDING OFFICER. Is there a want to thank Ed Pagan and Bruce cal year 2001, and for other purposes. sufficient second? Cohen of Senator LEAHY’s staff. Mr. LOTT. Mr. President, I ask for There appears to be a sufficient sec- I want to emphasize the great the yeas and nays. ond. amount of work and expertise toward The PRESIDING OFFICER. Is there a The hour of 3:45 p.m. having arrived, this successful effort of my Counsel, sufficient second? the question is on agreeing to the con- John McMickle. Without his hard work There is a sufficient second. ference report to accompany H.R. 2415. the bill would not have been the good The question is on passage of the The clerk will call the roll. product and compromise it is. joint resolution. The legislative clerk called the roll. Mr. LEAHY. I congratulate Senator The clerk will call the roll. Mr. FITZGERALD (when his name GRASSLEY, the Chairman of the Admin- The assistant legislative clerk called was called). Present. istrative Oversight Subcommittee and the roll.

VerDate 06-DEC-2000 03:36 Dec 08, 2000 Jkt 089060 PO 00000 Frm 00068 Fmt 4624 Sfmt 0634 E:\CR\FM\G07DE6.094 pfrm02 PsN: S07PT1 December 7, 2000 CONGRESSIONAL RECORD — SENATE S11731 Mr. NICKLES. I announce that the The PRESIDING OFFICER. The mittee on which I sat for 6 years. When Senator from Arizona (Mr. KYL) and clerk will call the roll. I came to the Senate, I met with Sen- the Senator from Pennsylvania (Mr. The assistant legislative clerk pro- ator DOMENICI. At the time, I was se- SPECTER) are necessarily absent. ceeded to call the roll. lected for that committee, and we Mr. REID. I announce that the Sen- Mr. ABRAHAM. Mr. President, I ask talked about our goals and hopes that ator from Louisiana (Ms. LANDRIEU) is unanimous consent that the order for some day we might advance a balanced necessarily absent. the quorum call be rescinded. budget to complete and see the Nation The PRESIDING OFFICER. Are there The PRESIDING OFFICER. Without balance its budget. Many people any other Senators in the Chamber objection, it is so ordered. thought we would never achieve that in who desire to vote? f our lifetime, and yet 3 short years after The result was announced—yeas 96, SERVICE IN THE SENATE I arrived on the committee, and under nays 1, as follows: PETE DOMENICI’s great leadership, that [Rollcall Vote No. 298 Leg.] Mr. ABRAHAM. Mr. President, it is rare in this Chamber for incumbent objective was realized. YEAS—96 I thank the chairman of the Small Senators who have lost on election day Business Committee, KIT BOND, whose Abraham Enzi Mack to still have the privilege of addressing Akaka Feingold McCain friendship has helped me in legislative the Senate again, at least in their ca- Allard Feinstein McConnell battles of recent years. I have only Ashcroft Fitzgerald Mikulski pacity of finishing out their terms. For Baucus Frist Miller me, if there is a silver lining behind been on that committee 2 years, but Bayh Gorton Moynihan his leadership also has been important Bennett Graham Murkowski this extended session of which we are a part, it is because it gives me a chance to my success in the Chamber. Biden Gramm Murray I extend my thanks to all of my col- Bingaman Grams Nickles to thank people—friends, supporters, Bond Grassley Reed staff, colleagues, and others—who have leagues. There are many close friends Boxer Gregg Reid made it possible for me, a grandson of who are part of this Chamber, people Breaux Hagel Robb with whom my family and I have be- Brownback Harkin Roberts immigrants, to serve and succeed here. Bryan Hatch Rockefeller I begin today by making some com- come close in the last 6 years and oth- Bunning Helms Roth ments and thanking people who have ers who have already departed the Burns Hollings Santorum Chamber but with whom we remain Byrd Hutchinson Sarbanes made a difference. Campbell Hutchison Schumer First, I thank my Senate colleagues close. Chafee, L. Inhofe Sessions with whom I have worked over the last Senator CHUCK HAGEL from Nebraska Cleland Inouye Shelby 6 years. I especially express my grati- is here with me today. I especially Cochran Jeffords Smith (NH) thank him for his great friendship and Collins Johnson Smith (OR) tude for the majority leaders under Conrad Kennedy Snowe whom I have served—Senator support. Senators , Craig Kerrey Stevens and Senator TRENT LOTT—for their , JUDD GREGG and Kerry Thomas confidence in me, for making me part DEWINE have also done me the honor of Daschle Kohl Thompson DeWine Lautenberg Thurmond of their circle of key advisers, for their helping me in my legislative efforts as Dodd Levin Torricelli support on both legislative and polit- well as being my friends over these last Domenici Lieberman Voinovich ical matters and, most importantly, for six years, and for that I want to thank Dorgan Lincoln Warner them. And finally for my Republican Durbin Lott Wellstone their friendship. Edwards Lugar Wyden I extend the same heartfelt thanks to colleagues, I want to thank all the the other members of our leadership other members of my freshman class, NAYS—1 teams over the last 6 years: To Senator the folks with whom I came in 1995, Leahy DON NICKLES for whom I served as dep- and who helped so substantially change NOT VOTING—3 uty whip for 4 years; to our conference the direction of this country: Senator Kyl Landrieu Specter chairman, THAD COCHRAN, who served SANTORUM, Senator INHOFE, Senator The joint resolution (H.J. Res. 127) when I first arrived here, and Senator THOMPSON, Senator FRIST, Senator was passed. CONNIE MACK; to our Senate campaign ASHCROFT, Senator KYL, Senator Mr. SESSIONS. Mr. President, I committee chairman, MITCH MCCON- SNOWE, Senator GRAMS, and as I men- move to reconsider the vote, and I NELL, and the late Senator PAUL tioned before, Senator DEWINE. move to lay that motion on the table. COVERDELL; to the Chairman of the Re- I reach across the aisle and thank the The motion to lay on the table was publican Policy Committee Senator many colleagues on the Democratic agreed to. ; to our new Conference side with whom I have worked on so The PRESIDING OFFICER. The Sen- Secretary Senator KAY BAILEY many bipartisan issues in the last 6 ator from Michigan. HUTCHISON, and so many others who years: f have provided me with guidance and To CARL LEVIN, our senior Senator leadership during the time I have been from Michigan with whom I have PRIVILEGE OF THE FLOOR here. worked very closely on many issues of Mr. ABRAHAM. Mr. President, I seek I also take special note of the people importance to our State; unanimous consent to have the mem- with whom I have served as a member To , my ranking mem- bers of my staff be allowed the privi- of their committees: To our Commerce ber on the Senate Immigration Sub- lege of the floor for the brief period of Committee chairman, JOHN MCCAIN, committee which I chaired. We have time that I make some remarks here who has been a great friend and sup- been very successful in passing a num- related to my tenure in the Senate. porter and through whose help I have ber of pieces of legislation through the The staff members are: Adam Condo, been able to pass significant legislation bipartisan cooperation we have David Carney, Meagan Vargas, Tom that came from our Commerce Com- achieved in that subcommittee; Glegola, Vance Poole, Bob Carey, Katja mittee agenda. To JOE LIEBERMAN, who has been the Bullock, Carrie Cabelka, Alex Hageli, I thank our Judiciary Committee lead cosponsor of my American Com- Tyler White, Rachael Bohlander, Kevin chairman, , who helped me munity Renewal Act, and other Kolevar, Joe McMonigle, Katie Packer, get on his committee my very first progrowth initiatives; Cesar Conda, Joe Davis, Margaret Mur- year here and whose support on that To , my partner in so phy, Jessica Moore, Sue Wadel, Majida committee helped me to achieve a many high-technology initiatives; Dandy, Lillian Smith, Julie Teer, Jim number of personal objectives with re- To RUSS FEINGOLD, BOB GRAHAM, and Pitts, Michael Ivanenko, Chase Hutto, spect to legislative goals and who others who have worked closely with Stuart Anderson, Lee Lieberman Otis, worked closely with me and his staff me. and Randa Fahmy Hudome. worked closely with my staff as we I also thank the many friends and The PRESIDING OFFICER. Without fought a number of very important bat- supporters and mentors who have objection, it is so ordered. tles in the Senate. helped me to arrive in the Senate and Mr. ABRAHAM. Mr. President, I sug- I thank my good friend Senator PETE in a lengthy political career in my gest the absence of a quorum. DOMENICI, who chairs the Budget Com- State of Michigan. There are many

VerDate 06-DEC-2000 03:36 Dec 08, 2000 Jkt 089060 PO 00000 Frm 00069 Fmt 4624 Sfmt 0634 E:\CR\FM\A07DE6.027 pfrm02 PsN: S07PT1 S11732 CONGRESSIONAL RECORD — SENATE December 7, 2000 people who are part of that success. It In particular, I would note Greg An- Kathryn Packer, Director of External Af- would be impossible to name all of drews, Joe Cella, Larry Dickerson, fairs; Chris Pavelich, Regional Director; them. I want to single out, though, Sharon Eineman, Tom Frazier, Phil John Petz, Southeast Michigan Director. James L. Pitts, Chief of Staff; Conley four people who played particularly Hedges, Eunice Myles Jeffries, Stuart Poole, Staff Assistant; John Potbury, Re- important roles: Larkins, Renee Meyers, John Petz, gional Director; Tosha Pruden, Caseworker; Former Michigan Senator Bob Griffin Elroy Sailor, Lillian Simon, and Billie Laurine Bink Purpuro, Deputy Chief of Staff; whose campaigns and staffs I worked Wimmer. Lawrence J. Purpuro, Chief of Staff; Elroy on many years ago and a role model for And there are many others who have Sailor, Special Assistant; David Seitz, Mail me in that he was the last Republican served and whose names I ask unani- Room Manager; Dan Senor, Director of Com- Senator from my State and a man mous consent to have printed in the munications; Mary Shiner, Regional Direc- tor; Anthony Shumsky, Regional Director; whose integrity and leadership in the RECORD. Senate were well recognized. He served Alicia Sikkenga, Special Assistant; Lillian There being no objection, the mate- Simon, Staff Assistant; Lillian Smith, Direc- ultimately as whip on the Republican rial was ordered to be printed in the tor of Scheduling; Anthony Spearman-Leach, side. His guidance and friendship from RECORD, as follows: Regional Director; Robert Steiner, Mail the time I was in college has meant a STAFF OF SENATOR (R– Room Manager; Anne Stevens, Special As- great deal to my political success and MICHIGAN) sistant; Matthew Suhr, Special Assistant; Julie Teer, Press Secretary; Amanda Trivax, my personal success as well. Mohammed Abouharb, Staff Assistant; To our great Governor John Engler, Staff Assistant. Stuart Anderson, Director of Immigration Meagan Vargas, Special Assistant; Shawn who has been a political friend and col- Policy and Research; Gregory Andrews, Re- league in Michigan politics since 1971. Vasell, Staff Assistant; Olivia Joyce gional Director; Anthony Antone, Deputy Visperas, Staff Assistant; Sue Wadel, Legal Without his support and help, I would Chief of Staff; Sandra Baxter, Assistant to Advisor; Seth Waxman, Caseworker; Jennifer not have been successful in my cam- the State Chief of Staff; Beverly Betel, Staff Wells, Caseworker; La Tonya Wesley, Special paign for the Senate or other roles I Assistant; Rachel Bohlander, Legislative As- Assistant; Tyler White, Special Assistant; played in Michigan politics. sistant; David Borough, Computer Specialist; Patricia Wierzbicki, Regional Director; To former Congressman Guy Vander Michell Brown, Staff Assistant; Katja Bul- Gregg Willhauck, Legislative Counsel; and Jagt with whom I served as cochair- lock, Office Manager; Carrie Cabelka, Staff Billie Kops Wimmer, State Director. man of the National Republican Con- Assistant; Cheryl Campbell, Regional Direc- Mr. ABRAHAM. Mr. President, I also tor; Robert H. Carey, Legislative Director; gressional Committee in 1991 and 1992 David Carney, Mail Room Manager; Joseph acknowledge that in addition to this when I made my first appearance on Cella, Regional Director; Cesar V. Conda, Ad- great staff—and I do want to thank the legislative side of Washington ministrative Assistant/Legislative Director; them here on the floor publicly for working on Capitol Hill for the first Adam Condo, Systems Administrator; Jon their great performance on my behalf time. Cool, Staff Assistant; Ann H. Coulter, Judici- and the many achievements I am going And especially to a great friend, ary Counsel; Majida Dandy, Executive As- to talk about in a minute that we have former Vice President Dan Quayle on sistant. been able to accomplish—I also note whose staff I served as deputy chief of Anthony Daunt, Staff Assistant; Joe Davis, that none of us would have been able to staff in 1990 and 1991, my first assign- Director of Communications; Nina De get as much done as we did without the Lorenzo, Press Secretary; Larry D. ment in Washington in Government Dickerson, Chief of Staff/Michigan Oper- help of the tremendous staff that service at the Federal level. ations; Joanne Dickow, Legal Advisor; Hope serves us in the Senate as a Chamber: I thank all of those individuals, and Durant, Executive Assistant to the Chief of The people who work the floor, our the others I have not had a chance Staff; Sharon Eineman, Senior Caseworker; pages, the folks who work at the front today to name, for having helped me Paul Erhardt, Special Assistant; Tom here who handle the clerk roles, and get to this role and being effective in Frazier, Regional Director; Bruce Frohnen, the parliamentary roles, and so on. I it. Speech Writer; Renee Gauthier, Caseworker; thank them. There are today on the floor a great Jessica Gavora, Special Advisor; David I thank the people who serve on the number of people who have worked on Glancy, Staff Assistant; Thomas Glegola, leadership staffs of both parties who Special Assistant; Todd Gustafson, Regional my Senate staff. I am proud of them have been great friends and who have and proud to have them with me. They Director; Alex Hageli, Staff Assistant; Mary Harden, Staff Assistant; Phil Hendges, Re- helped us to chart the very com- only reflect a percentage of the many gional Director; Paul Henry, Staff Assistant; plicated parliamentary waters we have folks who served in the State of Michi- Joanna Herman, Special Assistant. to so often navigate, the folks who gan and their country in the context of Melissa Hess, Staff Assistant; Stephen work on the staffs of the committees working on my staff. There are so Hessler, Deputy Press Secretary; Kate Hin- on which I have served that have many. I am going to try to name the ton, Deputy Chief of Staff; David Hoard, Spe- helped us to pass legislation, and to the ones I have listed, but I will submit the cial Assistant; Kevin Holmes, Special Assist- other people who work in the Senate, names of everybody for the RECORD. ant; Kelly Hoskin, Caseworker; Michael J. from the Capitol Police, who help us in Hudome, Special Assistant; Randa Fahmy The people who served on my senior so many ways that go unnoted, to the staff: Tony Antone, Cesar Conda, Kate Hudome, Counselor; F. Chase Hutto, Judici- ary Counsel; Michael Ivahnenko, Staff As- folks in the libraries and the Congres- Hinton, Randa Fahmy Hudome, Joe sistant; Eunice Jeffries, Regional Director; sional Research Service, and in the McMonigle, Katie Packer, Jim Pitts, Kaveri Kalia, Press Assistant; Raymond M. Cloakrooms. Larry Purpuro, Laurie Bink Purpuro, Kethledge, Judiciary Counsel; Elizabeth To all of those people, and others I and Sue Wadel. Kessler, General Counsel; Kevin Kolevar, have probably forgotten, I say thank To those folks who served over the Senior Legislative Assistant; Jack Koller, you because it has really been a very years on my press and communications Systems Administrator; Peter Kulick, Case- enjoyable part of this job to work with staff: Joe Davis, Nina Delorenzo, Steve worker; Kristin La Mendola, Staff Assistant; such nice people, people who give 100 Hessler, Margaret Murphy, Julie Teer, Patricia LaBelle, Regional Director; Bran- percent to this Chamber and to Amer- don L. LaPerriere, Legislative Assistant. Jessica Morris, and Dan Senor. Stuart Larkins, Staff Assistant; Matthew ica, and often without any recognition To a terrific legislative staff, and Latimer, Special Assistant; Joseph P. at all. I hope that we will continue to people who have worked on my sub- McMonigle, Administrative Assistant/Gen- always be served in this body by people committees: Stuart Anderson, Rachel eral Counsel; Eileen McNulty, West Michi- of such great skill and talent. Bohlander, Bob Carey, Ann Coulter, gan Director; Meg Mehan, Special Assistant; Finally, I thank the people of Michi- Chase Hutto, Elizabeth Kessler, Ray Rene Myers, Regional Director; Jennifer gan. They gave me and my family the Kethledge, Kevin Kolevar, Brandi Millerwise, Staff Assistant; Denise Mills, chance to come to Washington to rep- Laperriere, Brian Reardon, Gregg Staff Assistant; Maureen Mitchell, Staff As- resent them in the Senate. Willhauck; and Tyler White. sistant; Sara Moleski, Regional Director; I thank you for what I consider to be To my administrative staff: Katja Jessica Morris, Deputy Press Secretary; the most tremendous honor that any Margaret Murphy, Press Secretary; Tom Bullock, Majida Dandy, Paul Erhardt, Nank, Southeast Michigan Assistant; James American can have bestowed upon Jim Neill, Matt Suhr, and Lillian Patrick Neill, Director of Scheduling; Shawn them by their friends and neighbors in Smith. Neville, Northern West Michigan Regional their State, and for their tremendous To the many people who have worked Director; Na-Rae Ohm, Special Assistant; support throughout my 6 years in the with us who are on our Michigan staff: Lee Liberman Otis, Chief Judiciary Counsel; Senate.

VerDate 06-DEC-2000 04:42 Dec 08, 2000 Jkt 089060 PO 00000 Frm 00070 Fmt 4624 Sfmt 0634 E:\CR\FM\G07DE6.099 pfrm02 PsN: S07PT1 December 7, 2000 CONGRESSIONAL RECORD — SENATE S11733 I am very proud of the accomplish- fenders. Had that bill not passed, the the Republican Party—in my judg- ments I have achieved. I have worked sentences would have been automati- ment, seemed to have lost its way on very hard—I hope in most cases in an cally reduced. immigration. It had strayed from the effective way—to help the people of Later, with my staff, we wrote the inclusive, proimmigration philosophy Michigan, to make sure my constitu- Prison Conditions Litigation Reform of President Ronald Reagan toward the ents have had their voices heard in the Act, which helped reduce prisoner law- more protectionist and nativist views Senate, and to make certain that the suits and return control of our prisons of a vocal minority within the Repub- Federal Government is responsive to from judges back to local authorities. lican ranks. their needs. And just a few months ago, the Presi- In 1997, I helped lead a bipartisan Speaking of accomplishments, al- dent signed into law the Samantha group of Senators—from PHIL GRAMM, though I spent only a relevantly brief Reid Date-Rape Drug Prohibition Act. MIKE DEWINE, and SAM BROWNBACK, to time here in the Senate, I am very Samantha Reid was a Rockwood, MI, RUSS FEINGOLD, JOE LIEBERMAN, PAUL proud of what my staff and I have been teenager who died after drinking a can WELLSTONE, and others—to defeat a able to accomplish for the people of of Mountain Dew she did not know had misguided effort to slash legal immi- Michigan and for the country. been laced with the deadly date rape gration to this country. In 1994, a group of freshmen were drug GHB. Our law amends the Con- I believe, with all of my heart, that elected here. Eleven of us came in to trolled Substances Act by adding GHB America should remain—as President basically create a new majority. In to the list of Schedule 1 controlled sub- Reagan said—the ‘‘Shining City on the 1995, I came to the Senate as part of a stances, which also includes heroin and Hill,’’ welcoming those who play by the historic class of Republican Senators cocaine. rules and who contribute to society. —the class that gave Republicans con- As a member of both the Judiciary I would say, despite the ugly cam- trol of Congress for the first time in and Commerce Committees, I focused paign that was run in my State against decades. I believe we were sent to on a wide range of high-technology me by some of these anti-immigrant Washington to accomplish a very clear issues that I believe are critical to the hate groups, I am absolutely confident agenda: to balance the Federal budget, continued growth and prosperity of that the bipartisan coalition for legal to reduce the tax burden, to reform the this country. immigration that was built in this welfare system, and to make Wash- My American Competitiveness and Chamber will remain strong long after ington more accountable. Workforce Improvement Act increased I have left the Senate. I am proud to say, as I look back on the number of skilled professional I am also proud of what I have been our 6 years, that I believe we have de- visas to help with critical labor short- able to deliver to the people of the livered on those promises. ages, especially in the entrepreneurial State of Michigan on issues important We balanced the budget in 1998—and high-tech sector. to our State. we have kept it balanced every year The law also funds 10,000 new college I am very proud of what I have been since. We have done it this past year scholarships annually for low-income able to do with respect to increasing without using one penny of the Social students for studies in math, engineer- transportation funding; stopping an ef- Security trust fund surplus to get the ing, and computer science, and job fort to move to Washington control of job done. training for unemployed Americans the Great Lakes, and increasing envi- We reformed the welfare system, re- through the Jobs Partnership Act. ronmental funding for the Great Lakes; ducing the welfare rolls by over a I was also the author of two new laws restoring Medicare reimbursements for third. dealing with electronic commerce: the Michigan hospitals; and protecting our We provided parents with a $500-per- Government Paperwork Elimination auto workers’ jobs with respect to child tax credit and investors a cut in Act and the Electronic Signatures and issues that threaten the auto industry. the capital gains tax. Global and National Commerce Act. I intend to continue to fight—per- And we made Congress more account- The first law set forth a timetable for haps not in the elective political arena able by requiring Members to live by Federal agencies to accept electroni- or in public life specifically, but in the same rules and regulations and cally signed and transmitted records whatever roles that I might be able to mandates we impose on the rest of the and forms from businesses and individ- play—for tax and regulatory policies country. uals. The second law ensured that con- that strengthen American competitive- I am proud of those achievements, tracts agreed to over the Internet ness and economic growth, to ensure which I think, of course, are achieve- using digital signatures would have the strong national security, tough laws ments of this body as a whole. same legal validity as contracts agreed against criminals, and to have immi- I am also proud of some of the things to in the paper world using pen and ink gration policy that respects America’s which I have been able to accomplish signatures. great traditions, having schools that during the last 6 years. I am very proud Both of these laws have laid the are second to none, training for 21st- of the fact that, including today, I have groundwork, I think, for continued century jobs, community renewal ef- never missed a single rollcall vote on growth and expansion of electronic forts to empower the poor, and a trans- the floor of the Senate. I have just commerce in the years to come. portation and infrastructure system cast, I think, my 2,002nd consecutive Other laws which I have been in- that makes us prepared to be competi- rollcall vote. volved with—I am especially proud of tive in the 21st century. In my view, voting in the Senate is the passage, this year, of the As I close, I have a few moments the single most important duty that Neotropical Migratory Bird Conserva- upon which I will reflect. When one we can, as Senators, perform on behalf tion Act and the College Scholarship comes to the end of a 6-year period of our constituents. It is what the peo- Fraud Prevention Act; and in the pre- here, there are a lot of memories. It is ple of our States elect us to do. I am vious year, the Child Passenger Protec- probably possible for one to speak long glad I have been here every single day tion Act. into the night about the various things for the people of Michigan to perform I am especially proud of having been one recalls. I do remember being sworn that responsibility. the Senate sponsor of legislation that in here that first day just a few steps in I am also proud of the fact that in a conferred the Congressional Gold front of me by Vice President GORE, fairly short period of time I have been Medal on one of my constituents, Mrs. holding our family Bible and very nerv- able to author 22 pieces of legislation Rosa Parks. ously taking the oath of office because that have been signed into law. I am One area that I spent a great deal of it was such an important moment in proud of that legislative record. time working on in this Chamber, as my life. As a member of the Judiciary Com- many know, is the area of immigra- I remember the first day I sat in the mittee, I took a special interest in drug tion. As a grandson of immigrants, I President’s chair presiding over the and crime issues. My first bill to be- am especially proud of the role that I Senate. I considered it to be quite an come law prevented the U.S. Sen- tried to play in changing the tone of important honor to be given that duty. tencing Commission from reducing the debate over immigration in this Then by the second and third day that prison sentences for crack-cocaine of- Chamber. In the mid-1990s, my party— I performed it, I realized exactly how

VerDate 06-DEC-2000 03:36 Dec 08, 2000 Jkt 089060 PO 00000 Frm 00071 Fmt 4624 Sfmt 0634 E:\CR\FM\G07DE6.100 pfrm02 PsN: S07PT1 S11734 CONGRESSIONAL RECORD — SENATE December 7, 2000 that responsibility was viewed by the in the Senate. I can remember during Mr. HAGEL. Mr. President, I rise to other Members of this Chamber. This the last 6 years from the balanced respond very briefly on behalf of this week I asked once again to have the budget amendment debates, when I Senator, and I think I speak for the en- chance to preside because I wanted to first got here, to the debates over Bos- tire body when I say thank you to Sen- never forget just exactly how meaning- nia and other foreign affairs issues, to ator SPENCE ABRAHAM from Michigan ful it is to serve in this Chamber. the impeachment trial and so on, while for his contributions, his leadership, I remember passing our first bill with we in the Senate obviously have a rep- his effectiveness. regard to sentencing and seeing it utation for being a deliberative body, My grandfather Hagel used to occa- signed into law. I remember standing we also are a body in which the pas- sionally pay the highest compliment to at this desk and casting the very first sions of the country are best reflected an individual when he would say: He is vote on the impeachment trial that we in the debates we have. I hope that will a good man. had in January of 1999 with respect to always be the tradition as well. Well, SPENCE ABRAHAM is a good the impeachment of President Clinton, Indeed, I think the Senate really does man. He will go on to do other very sig- an unbelievably historic moment to reflect democracy at its finest. Over 150 nificant things with his life, with his have been a part. And of course I will years ago, De Tocqueville observed: talent, with his leadership. We will all never forget today, the chance to be I confess that in America I saw more than be well served. It will impact the fu- here with colleagues and staff and America; I saw the image of democracy ture of his children and our children, friends speaking one last time in the itself, with its inclinations, its character, its just as his service in the Senate has Senate. Indeed, it is these moments, prejudices, and its passions, in order to learn made this a better institution and a what we have to fear or hope from its the chance to stand up and to make progress. stronger Nation. one’s case for one’s State, for one’s be- I have been privileged to serve with Some say this America, this image of liefs, that will stay with me probably SPENCE ABRAHAM, be his seatmate here democracy, no longer exists. But I say more than any other. on the Senate floor, and become a good that it does exist, right here in this In closing, I will just make a few friend. Of that friendship and that serv- short observations. First, this institu- great Chamber. I will miss the Senate. I will miss the ice, I am proud. I thank Senator ABRA- tion has been served by great people. institution, and I will miss the people. HAM. All too often we tend to take for grant- Being a Senator has been my dream I yield the floor. ed the truly extraordinary political job. I hope that during my 6 years here Mr. ABRAHAM. Mr. President, I sug- leaders who work here every day. I per- I have contributed in some small way gest the absence of a quorum. sonally consider it a great honor and to the rich history of what has been The PRESIDING OFFICER. The privilege to serve with people who will and forever will be called ‘‘the world’s clerk will call the roll. long be recognized, probably for the en- greatest deliberative body in the The assistant legislative clerk pro- tire history of our country, as giants in world’s greatest democracy.’’ It is a ceeded to call the roll. this Chamber—leaders such as Senator long distance from being the grandson Mr. HAGEL. Mr. President, I ask Bob Dole, our President pro tempore of immigrants to this floor. unanimous consent that the order for , retiring Member I know when my grandparents came the quorum call be rescinded. , and of here, they never dreamt that their The PRESIDING OFFICER. Without course the great Senator from West grandson or anyone in the family objection, it is so ordered. Virginia —two on each would end up as a Member of the U.S. f side of the aisle whose contributions to Senate, but they came to America be- MORNING BUSINESS their Nation and to this Chamber will cause they wanted to live in a place in never be forgotten, and two on each which something such as that could Mr. HAGEL. Mr. President, I ask side of the aisle whose leadership I happen. This is the one country where unanimous consent that the Senate hope all of us will be able to in some something such as that not only can now be in a period of morning business ways emulate in our careers. I know happen in the family of the Abrahams, with Senators speaking for up to 10 there will be others who are serving but in many other families happened minutes each. here and with whom I have served who all the time. It is the greatest thing The PRESIDING OFFICER. Without someday will be looked upon the same about America. I am proud and believe, objection, it is so ordered. way, as history records their accom- as I leave the Chamber, that I have f plishments. helped contribute in my own small way ANNIVERSARY OF PEARL HARBOR The second observation I have is for during these 6 years to making sure DAY those sitting in the gallery, watching that America always remains that and paying attention to the action of country. Mr. THURMOND. Mr. President, I the Senate. Sometimes the media and I thank everyone I have mentioned, rise today in remembrance of those others tend to focus too much on the but I especially thank my family, some who relinquished their lives at the Jap- areas in which we disagree in this of whom are here today, my wife Jane anese attack of Pearl Harbor. As Presi- Chamber. Indeed, we do have our dis- and my daughters Betsy and Julie, dent Franklin Delano Roosevelt said at agreements. That is why we have a without whom none of this would have the time, December 7, 1941, will remain democratic system that gives each side been possible for me. Their support in ‘‘a date which will live in infamy,’’ for an opportunity to fight for their every way and their love and affection it was on this date that the Japanese causes. have made the difference in my life. forces attacked our unsuspecting Na- But as the Presiding Officer knows, As I leave the Senate, I will only say tion. in the committees and usually on the that I hope all Americans will in their The first Japanese assault struck the floor of this Chamber, we work to- own way find a way to appreciate the United States naval base at Pearl Har- gether on a bipartisan basis to get greatness of this democracy. I hope all bor, Hawaii, on the island of Oahu, at things done for the American people. of my colleagues will continue to fight 7:55 a.m. The base was just awakening More often than not, things pass here to make sure that that tradition, that early Sunday morning when the sound unanimously. They do so quietly. They Nation which my grandparents and so of Japanese torpedo planes could be do so by the unanimous-consent agree- many others fought for, so many oth- heard. The American armed forces in ments that don’t get reported very ers strove to come to be part of, will al- the Pacific were caught completely off often. Indeed, much of America’s busi- ways be available to those who seek guard. When a war warning was issued ness is accomplished without rancor freedom and liberty and opportunity two weeks prior, Hawaii was not men- and strife, without divisive debates. At and that that dream will be forever tioned as a possible target. At the the same time, the Founding Fathers part of our great country. time, American authorities thought created the Senate as the saucer to I yield the floor. that the Philippines or Malaysia would cool the passions of the day. The PRESIDING OFFICER (Mr. be a possible area of attack, not the is- I have observed that passion for phi- SMITH of Oregon). The Senator from land of Hawaii. Therefore, Pearl Harbor losophy, at least for ideas, reigns here Nebraska. was not prepared for the onslaught of

VerDate 06-DEC-2000 03:36 Dec 08, 2000 Jkt 089060 PO 00000 Frm 00072 Fmt 4624 Sfmt 0634 E:\CR\FM\G07DE6.103 pfrm02 PsN: S07PT1 December 7, 2000 CONGRESSIONAL RECORD — SENATE S11735 terror that occurred that devastating are to be admired for your service to These constituent service staffers too morning. the community, the Nation, and for often work in the background. They The Japanese attack consisted of 363 being chosen Country Doctor of the don’t attend signing ceremonies. They planes that came in two waves with the Year. I join your family, friends, and don’t meet with celebrities or national second only 45 minutes after the first. colleagues in congratulating you on leaders. They don’t have bills and pho- The United States had concentrated al- this honor. tographs, plaques or certificates on most its entire fleet of 94 vessels, in- f their office walls. Joyce Newton was cluding 8 battleships, at Pearl Harbor, one of these devoted individuals on RETIREMENT OF JOYCE NEWTON and this proximity made an easy target Capitol Hill who labored quietly on be- for the Japanese. Additionally, to pre- Mr. HATCH. Mr. President, at the half of the citizens of America. And, vent against saboteurs, the Army’s end of December, one of my charter she got it done. planes at Oahu were alined wing tip to staff members will be retiring. Joyce There are thousands of citizens in my wing tip on airfields. Therefore, the Newton has been on my staff since I State—seniors, children, service men Japanese were able to easily diminish took office as the Senator from Utah in and women, families, students—who the threat of any American defense. January 1977. may not remember Joyce Newton’s Before noon, when the Japanese attack As a freshman Senator, I was the name. But, they will always remember concluded, 2,403 American servicemen beneficiary of Joyce’s decade of pre- what she did for them. and civilians were killed and an addi- vious experience as a caseworker for We are sorely going to miss Joyce tional 1,178 were wounded. former Representatives Frank Horton Newton on the Hatch staff. And, today December 7, 1941, is the day our land, and John Conlan and as a staffer at the I want to thank her publicly for all of our people, and our spirit were brutally Office of Management and Budget. her dedicated hard work over these last attacked. However, the Japanese forces But, during these last 24 years, Joyce many years and wish her all the best in failed to defeat the patriotism of the has helped countless Utahns with So- a much deserved, well-earned retire- American people and our undying be- cial Security snafus, international ment. lief in our Nation. We were able to adoptions, military transfers, and a f rally around one another with the whole host of other special needs and knowledge and the confidence that problems. Joyce has always been there BOB LOCKWOOD America would prevail, and the great to offer a sympathetic ear or to jump Mr. HATCH. Mr. President, I pay losses we suffered at Pearl Harbor start a slow or reluctant bureaucracy. public tribute to Bob Lockwood, who is would not be in vain. As a veteran of Joyce has been known to come to the finally retiring. I say ‘‘finally’’ because World War II, and a proud American, I office in the wee hours of the morning he has tried to leave at least twice pre- would like to recognize the patriotism, in order to telephone an embassy half- viously, and I successfully prevailed on the bravery, and the extreme sacrifices way around the globe. him to stay. But, this time, it looks as of those who were at Pearl Harbor on She has been known to telephone the if he is really going to do it. December 7, 1941, including our own same Federal caseworker three times Bob came to my staff after a long and Senator DAN INOUYE. These fine men in one day just to make sure a con- distinguished career in the Army, serv- and women are true American heroes, stituent’s application was not buried ing in many capacities, including in and our country forever owes them a under another pile of work resulting in Vietnam and on the Secretary of De- great debt of gratitude. a needless delay or missed deadline. fense staff. Bob has many credentials f She has been known to go to bat for making him unique among military of- constituents even when the grounds for ficers. He is a lawyer, an engineer, and COUNTRY DOCTOR OF THE YEAR their congressional appeals were an economist. He found an organiza- Mr. LOTT. Mr. President, today, I shaky. tion—the U.S. Army—where he could rise to pay tribute to the Country Doc- And, Joyce has been tenacious. She put all of these qualifications to work. tor of the Year, Dr. Howard Clark of has pursued cases as far as she could. If So, when he wanted to establish a sec- Morton, MS. Clark was selected for we were unsuccessful in resolving a ond career in public policy, I benefited this award out of 501 doctors from 41 constituent problem, it was never for from a man who could wear many hats. States by a national physicians asso- lack of trying—it was only for lack of It will probably take three people to ciation. At the young age of 73, Dr. more avenues. replace him. Clark sees an average of 60 patients a I remember the ‘‘Books for Bulgaria’’ Bob had the complex portfolios of de- day, cares for about 20 who are hos- project. How could we get literally fense and trade as well as business liai- pitalized and 110 who reside in the local hundreds of pounds of books to Bul- son. The amazing thing is that he is ex- nursing home. He is a graduate of Mis- garia at little or no cost to be used by pert in all these areas as well as tena- sissippi State University and attended a nonprofit organization for edu- cious and unwilling to let any issue medical school at both the University cational outreach in that distressed slide. There may be a few people at the of Mississippi and Tulane University. country? This was not an easy problem. Pentagon and at USTR who will cheer Clark was among the first doctors Joyce somehow managed to solve it. his retirement if only because Bob will hired when the University of Mis- I remember the young woman from not be around to bug them. On the sissippi Medical Center opened its England who needed specialized sur- other hand, I know firsthand that Bob doors in 1955. He has been in practice in gery to cure a rare condition that pre- is universally respected for his knowl- Morton since 1956. I want to commend vented her from walking. Doctors at edge, his integrity, and his profes- Dr. Clark not only for his service to the University of Utah had pioneered a sionalism. He has big shoes that will be the people of Morton and the sur- new technique not available anywhere hard to fill. rounding areas but also for the service else, but various INS rules needed to be Over the years, he has helped me to he gave this great Nation. When How- sorted out in order for her to come and foster business development in Utah, to ard Clark joined the Armed Forces fol- remain in our country long enough for prepare for the landmark debates we lowing graduation from high school, he recovery and rehabilitation. There is a have had on trade, and to protect our was stationed in the South Pacific. At woman able to walk today because great Hill Air Force Base and other the time, there was a dire need for Joyce got it done. military facilities from ill-advised and medics and he volunteered. This altru- I have always had complete con- politically motivated cuts and clo- istic act sparked the start of a career fidence in Joyce. When she phoned an sures. I will always be grateful for his that has made life better for those agency, she was phoning for me. No yeoman effort on these projects. Utah around him. Dr. Clark’s selflessness Senator or Representative can possibly is better off today for his dedication to spills over into his personal life as well. do this work by himself or herself. It these major issues. He is an active member of the Morton takes dedicated, caring, and competent Bob has also turned into a real community, serving as the local school people to work through the various Utahan during the years he has worked doctor at sporting events, missing only redtape entanglements that often en- for me. Traveling to our State often one game in 43 years. Dr. Clark, you snare our citizens. during the year, he fell in love with

VerDate 06-DEC-2000 03:36 Dec 08, 2000 Jkt 089060 PO 00000 Frm 00073 Fmt 4624 Sfmt 0634 E:\CR\FM\G07DE6.061 pfrm02 PsN: S07PT1 S11736 CONGRESSIONAL RECORD — SENATE December 7, 2000 Utah and the possibilities that abound that these three wonderful people have Law.’’ In a Nation that prides itself in there. At the end of the month, Bob done. I pay personal tribute to them. that equal justice, how can we abide a will go from being my employee to f system where nearly half of the execu- being my constituent. tions are carried out in just one state? I wish him well as he is taking on the VICTIMS OF GUN VIOLENCE Finally, I rise to mark another mile- new challenge of retirement, one for Mr. AKAKA. Mr. President, it has stone. On Tuesday of next week, the which his wife may not be fully pre- been more than a year since the Col- Federal Government is scheduled to re- pared. I know Bob to be successful at umbine tragedy, but still this Repub- enter the grim business of execution. any project he takes on. I know he will lican Congress refuses to act on sen- For nearly 40 years, no one has been drive his wife nuts if he stays home sible gun legislation. executed in the name of the people of very much. But he won’t. He is one of Since Columbine, thousands of Amer- the United States. That is set to these guys who really works hard and icans have been killed by gunfire. Until change next Tuesday. makes every second of his life count. we act, Democrats in the Senate will In light of the demonstrated evidence He is one of my dearest friends, and I read the names of some of those who of regional and racial disparity in the love him. have lost their lives to gun violence in application of this most final punish- f the past year, and we will continue to ment, I call on the President to stay do so every day that the Senate is in that execution. I call on the President DONNA DAY session. to impose a moratorium on Federal Mr. HATCH. I also want to say a In the name of those who died, we executions and establish a blue ribbon word about Donna Day. will continue this fight. Following are commission to examine the fairness of Donna has been on my staff for 15 the names of some of the people who the system of capital punishment in years. She has been a loyal and effi- were killed by gunfire one year ago America. cient staffer, working diligently on today. In September, the Department of data entry. I don’t quite know how we December 7, 1999: Jose Corral, 72, Justice released a report on the federal will fill the hole left in our correspond- Miami-Dade County, FL; George Dean, death penalty system. That report ence management unit when she re- 17, Philadelphia, PA; Kowandius found that whether the federal system tires at the end of the month. Hammett, 22, Miami-Dade County, FL; sends people to death row appears to be If the personnel office at any organi- John Jeter, 24, Philadelphia, PA; Andre related to the federal district in which zation were to write down the at- Derrell Jones, 23, Baltimore, MD; they are prosecuted or the color of tributes of the perfect employee, the Tommy Martin, 38, Oakland, CA; Casey their skin. list would describe Donna Day. She has B. Morgan, 42, Seattle, WA; Karen K. After the Justice Department re- worked tirelessly over these 15 years Morgan, 43, Seattle, WA; Thomas B. leased the report, White House spokes- on my behalf. She is never late, rarely Morgan, 45, Seattle, WA; Adon L. Shel- man Jake Siewert confirmed the Presi- absent, and always pleasant. It seems by, 32, Chicago, IL; Emeric Tahane, 22, dent’s view that ‘‘these numbers are that Donna never has a bad day. We Washington, DC; Heiu Minh Trihn, 22, troubling’’ and that more information have always been able to count on her New Orleans, LA; and Unidentified must be gathered to determine ‘‘more day after day, year after year, to do an Male, 23, Nashville, TN. about how the system works and important job consistently well. And, I We cannot sit back and allow such what’s behind those numbers,’’ includ- don’t believe I have ever heard her senseless gun violence to continue. The ing ‘‘why minorities in some geo- complain about anything—not even the deaths of these people are a reminder graphic districts are disproportionately deluge of letters, cards, faxes, and e- to all of us that we need to enact sen- represented.’’ mails we received during some very sible gun legislation now. We do not yet know why our federal high profile debates. f system produces racially and geo- Frankly, it is hard to imagine walk- graphically lopsided results. We need a ing into our mailroom in January and THE RECORD ON EXECUTIONS systematic review. not seeing her there sorting mail or Mr. FEINGOLD. Mr. President, I rise Many are joining in asking the Presi- working at the computer. with regret to mark another milestone dent for a moratorium on executions. I have been blessed during my Senate in the history of our system of justice. Their ranks include, among so many tenure to have had excellent staff, not This morning’s papers report that yes- others, Lloyd Cutler, the esteemed just in my policy and senior staff posi- terday the state of Texas carried out former adviser to Presidents Carter tions, but in the support roles as well. its 39th execution, the most of any and Clinton; Julian Bond, Chairman of Donna has been such a staffer, and I state since 1862, when the military the NAACP; and the Reverend Joseph will miss her. hanged 39 Native Americans in one day Lowrey, chair of the Black Leadership I want to thank her for her many in Minnesota. This evening, Texas is Forum and President emeritus of the contributions to my office, congratu- scheduled to surpass that record with Southern Christian Leadership Con- late her on a well-deserved retirement, its 40th execution. This is a regrettable ference. and wish her all the best as she moves record. Yes, justice demands that crimes be on to the next chapter in her life. This year, as of yesterday, states in punished. But if we demand justice, we I want her to know how much I ap- America have executed 82 people. We must administer justice fairly. preciate her and her colleague Joyce have reached a sad state of affairs Before we reach the milestone of re- and how much I love and appreciate when this Country executes nearly 100 instituting Federal executions, let us Bob Lockwood. These people have prov- people every year. In 1998, only China pause to evaluate the fairness of our en that government workers work and the Congo executed more people a Nation’s machinery of death. Mr. President, let this be a milestone above and beyond, that they really year than did the United States. that we choose not to reach, next make a difference in all of our lives, And we have reached an inequitable week. God willing, let this be a mile- and that they are part of the reason state of affairs when nearly half of the stone that we choose not to reach, if why many in this country have a qual- executions this year—39 out of the 82 to ever, for some time to come. ity of life they would not otherwise date—were carried out in just one have. state. The state with the next most f I am so grateful to these three people executions this year, Oklahoma, has ADDITIONAL STATEMENTS and for the service they have given to had 11 executions. Southern states our country, to the Senate, to my con- have carried out nearly 9 out of 10 exe- stituents. It has been such a privilege cutions that have taken place this AMBASSADOR DAVID HERMELIN to work with them. I say ‘‘with them.’’ year. ∑ Mr. BIDEN. Mr. President, I rise They never worked for me. They Across the street, the building that today to pay tribute to David B. worked for all of us. They worked with holds the Supreme Court of the United Hermelin, former U.S. Ambassador to me. I don’t think I would be nearly as States has emblazoned across its pedi- Norway, who passed away on November effective had it not been for the work ment the words ‘‘Equal Justice Under 22.

VerDate 06-DEC-2000 03:36 Dec 08, 2000 Jkt 089060 PO 00000 Frm 00074 Fmt 4624 Sfmt 0634 E:\CR\FM\A07DE6.099 pfrm02 PsN: S07PT1 December 7, 2000 CONGRESSIONAL RECORD — SENATE S11737 After a distinguished business and RECOGNITION OF DR. DWIGHT sity in Aberdeen and Cindy is the prin- philanthropic career in his native CRIST NORTHINGTON cipal at Aberdeen Central High School. Michigan, Mr. Hermelin was nominated ∑ Mr. TORRICELLI. Mr. President, I Again, my congratulations to Josh as envoy to Norway by President Clin- rise today to recognize Dr. Dwight Heupel and his family on behalf of the ton in 1997 and confirmed by the Sen- Crist Northington on the occasion of entire state of South Dakota.∑ ate that same year. his 9th Pastoral Anniversary at Cal- Members of this Chamber know that, vary Baptist Church in Red Bank, New f as might be expected with any large Jersey. Dr. Northington is an ex- group, over the years the performance tremely gifted individual, and it is an of our ambassadors, both career dip- TRIBUTE TO VINCENT CANBY honor to recognize this special moment lomats and political appointees, have ∑ Mr. MOYNIHAN. Mr. President, in in his life. varied widely. By any standard, David late October, as many Senators will Dr. Northington has served the citi- Hermelin’s tenure was spectacularly know, Vincent Canby, ‘‘whose lively successful. zens of New Jersey since 1986, when he wit and sophisticated tastes illumi- In the short space of two years, Am- was named Pastor of First Baptist nated film and theater reviews in the bassador Hermelin managed a remark- Church of South Orange. Since that New York Times for more than 35 able feat: strengthening the already time, he has also served as president of years’’ died at age 76. Thinking of an close ties between our ally Norway and Westside Ministerial Alliance and cur- appropriate manner in which the the United States. His diplomatic and rently serves as the Moderator of the might honor personal charm led to unprecedented Seacoast Missionary Baptist Associa- his most honored memory, there came reciprocal visits within three weeks of tion. While having done a great deal for to mind an observation he made in a each other last year—the Norwegian the community of Red Bank, Dr. review of a film based on E.M. Foster’s Prime Minister’s to Washington, and Northington has also served as an in- novel ‘‘Howard’s End.’’ President Clinton’s to Oslo, the first structor at Brookdale Community Col- lege and as a member of the Borough of It’s time for legislation decreeing that no ever visit of an incumbent President to one be allowed to make a screen adaptation Norway, in this case in pursuit of a Red Bank Board of Education. of any quality whatsoever if Ismail Mer- Middle Eastern peace settlement. The needs of our Nation can only be chant, James Ivory and Ruth Prawer But Ambassador Hermelin’s accom- met through the industrious efforts of Jhabvala are available, and if they elect to plishments were not limited to such each individual. The work of Dr. do the job. Trespassers should be prosecuted, highly publicized events. Through be- Northington and others like him is possibly condemned, sentenced to watch hind-the-scenes daily efforts, he was di- vital to the continued prosperity of our ‘‘Adam Bede’’ on ‘‘Masterpiece Theatrer’’ for rectly instrumental in the success of communities and meeting the needs of five to seven years. Lockheed Martin’s bid, as part of a people who live within them. The legislative drafting service had consortium, to sell the Norwegian The citizens of Red Bank are fortu- no difficulty producing legislative lan- Navy five new frigates equipped with nate to have a talented and dedicated guage. I had in mind a joint resolution, the Aegis missile system, a sale worth individual such as Dr. Northington in which is, of course, a statute. However, more than one billion dollars. their community.∑ in view of our oath ‘‘to uphold and de- Ambassador Hermelin was recognized f fend the Constitution of the United for his many contributions by being States,’’ I felt in need of a legal opinion awarded the Royal Norwegian Order of TRIBUTE TO JOSH HEUPEL as to whether there might be constitu- Merit, the highest honor the country ∑ Mr. JOHNSON. Mr. President, I rise tional impediments to such a measure. bestows upon non-Norwegians. today to congratulate Josh Heupel, a I think for example of the ‘‘taking Even after Ambassador Hermelin was native of Aberdeen, South Dakota. All clause’’ of the fourth amendment re- diagnosed with a terminal illness, he of South Dakota, and especially Aber- cently much discussed in learned pa- vigorously played a major role to help deen, is extremely proud of Josh, one of pers associated with the University of others through an international initia- four finalists for the Heisman Trophy. Chicago School of Law. And so I set tive to provide prostheses to victims of The Heisman Trophy is presented an- out to obtain advisory opinions. Alas, I civil conflict, such as in Sierra Leone. had tarried too long. November 7 had On his visit to Oslo in November 1999, nually to the nation’s top collegiate football player. passed. The Presidential election was President Clinton, in speaking of Am- in dispute. All of the constitutional bassador Hermelin, reflected on this Josh is the starting quarterback of the number one ranked and undefeated lawyers in Washington had decamped kind of behavior: ‘‘I don’t know anyone for Florida. who has such a remarkable combina- Oklahoma Sooners, 12–0. Josh has And now, in the closing hours of the tion of energy and commitment to the passed for 3,392 yards and 20 touch- 106th Congress, they are still there. common good.’’ downs this year which makes him one After diagnosis of his terminal ill- of the Heisman favorites. Josh has led This leaves me with no choice but to ness, he and a group of friends donated the Oklahoma Sooners through a very withhold the measure for now. Happily ten million dollars to establish a brain difficult schedule, which included two I am informed that next April we will tumor center at Henry Ford Hospital wins against top ten ranked Kansas witness the premier of The Wandering in Michigan. State and overcame an early 14 point Company’s adaptation of Henry James’ Ambassador Hermelin felt deeply deficit against the then number one ‘‘The Golden Bowl.’’ What a splendid connected to and to Jewish ranked Nebraska Cornhuskers. Josh is way to begin the new millennium. (For causes, raising millions of dollars for preparing for the National Champion- that is what the year 2001 will be, and local Detroit and overseas needs. ship game on January 3, 2001 against our trio are naught if not scrupulous as After the Ambassador’s death, the the Florida State Seminoles. No mat- to details.) Surely a Senator in the U.S. State Department’s Norway desk ter what the outcome is, I know the en- 107th Congress will wish to pursue this officer offered this heartfelt testimony: tire state is very proud of Josh and matter. The glory of three continents ‘‘David Hermelin was the kind of man grateful he has conducted himself in a is yet to be proclaimed in law. who made a friend out of everybody he way that shines greatly on South Da- I regret the inconvenience this may met, and the people who worked for kota. cause viewers of ‘‘Adam Bede,’’ and I him at the embassy regarded him with I would also like to take this oppor- surely would not wish to denigrate an affection that is unmatched by the tunity to congratulate Ken and Cindy ‘‘Masterpiece Theatre,’’ but Vincent feelings I’ve seen for any other ambas- Heupel, Josh’s parents, on Josh’s suc- Canvy was a just and moderate man. sador at any time to any country.’’ cess. As the father of three children And, as is proclaimed on the wall above Ambassador Hermelin is survived by who have participated in extra- the bench of the Chenango County his wife, five children, and eight grand- curricular activities, I can imagine Courthouse in James Ivory’s ancestral children. He will be sorely missed by how proud Ken and Cindy must feel home of Norwich, New York ‘‘Fiat all who knew him, particularly by his today. Ken is currently the Head Foot- Justica Ruat Coelum’’.—Let justice be colleagues in the U.S. Government.∑ ball Coach at Northern State Univer- done though the heavens fall.∑

VerDate 06-DEC-2000 04:28 Dec 08, 2000 Jkt 089060 PO 00000 Frm 00075 Fmt 4624 Sfmt 0634 E:\CR\FM\A07DE6.048 pfrm02 PsN: S07PT1 S11738 CONGRESSIONAL RECORD — SENATE December 7, 2000 IN RECOGNITION OF DR. CHARLES The enrolled resolution was signed Act, Rules and Regulations under the Wool G. ADAMS, HEASTER WHEELER subsequently by the President pro tem- Products Labeling Act’’ (RIN3084–0101, 3084– AND WENDY WAGENHEIM pore (Mr. THURMOND). 0100) received on November 29, 2000; to the Committee on Commerce, Science, and ∑ Mr. LEVIN. Mr. President, I rise f Transportation. today to pay tribute to three out- EXECUTIVE AND OTHER EC–11766. A communication from the Act- standing people from my home state of COMMUNICATIONS ing Director of the Office of Sustainable Michigan. On December 10, 2000, Dr. Fisheries, National Marine Fisheries Serv- Charles G. Adams, Heaster Wheeler and The following communications were ice, Department of Commerce, transmitting, laid before the Senate, together with pursuant to law, the report of a rule entitled Wendy Wagenheim are being recog- ‘‘Closure of the Commercial Fishery for Gulf nized for their outstanding leadership accompanying papers, reports, and doc- uments, which were referred as indi- Group King Mackerel in the Northern Flor- in this year’s ‘‘All Kids First’’ cam- ida West Coast Subzone’’ received on Decem- cated: paign initiative. ber 5, 2000; to the Committee on Commerce, Dr. Charles G. Adams has served as EC–11757. A communication from the Office Science, and Transportation. Pastor of Hartford Memorial Baptist of the Assistant Secretary, Civil Works, De- EC–11767. A communication from the Act- partment of the Army, transmitting, pursu- Church in Detroit, Michigan, since ing Director of the Office of Sustainable ant to law, a report relative to Johnson Fisheries, National Marine Fisheries Serv- 1969, and is one of Detroit’s pre-emi- Creek in the City of Arlington, Texas; to the ice, Department of Commerce, transmitting, nent religious and civil rights leaders. Committee on Environment and Public pursuant to law, the report of a rule entitled Because of his eloquence and command Works. ‘‘Fisheries Off West Coast States and in the of the issues, he is highly sought after EC–11758. A communication from the Dep- Western Pacific; West Coast Salmon Fish- as a speaker on issues of faith and so- uty Associate Administrator, Environmental eries; Inseason Adjustments from the U.S.- cial justice. He served as Co-Chair of Protection Agency, transmitting, pursuant Canada Border to the Oregon-California Bor- the All Kids First initiative, partici- to law, the report of a rule entitled ‘‘Revi- der’’ received on December 5, 2000; to the sions to the California State Implementation Committee on Commerce, Science, and pating in televised debates and helped Plan, Ventura County Air Pollution Control Transportation. to lead the effort among his colleagues District’’ (FRL #6908–1) received on Decem- EC–11768. A communication from the Act- in the religious community and the ber 5, 2000; to the Committee on Environ- ing Director of the Office of Sustainable community at large. Finally, I would ment and Public Works. Fisheries, National Marine Fisheries Serv- like to add a heartfelt ‘‘Happy Birth- EC–11759. A communication from the Dep- ice, Department of Commerce, transmitting, day’’ to Dr. Adams, who will be cele- uty Associate Administrator, Environmental pursuant to law, the report of a rule entitled brating his 64th birthday on December Protection Agency, transmitting, pursuant ‘‘Fisheries Off West Coast States and in the to law, the report of a rule entitled ‘‘Na- Western Pacific; West Coast Salmon Fish- 13, 2000. eries; Inseason Adjustments From House Heaster Wheeler is the Executive Di- tional Emission Standards for Aerospace Manufacturing and Rework Facilities’’ (FRL Rock, OR to Humboldt South Jetty, CA’’ re- rector of the Detroit Branch NAACP, #6913–9) received on December 5, 2000; to the ceived on December 5, 2000; to the Committee the largest NAACP chapter in the Committee on Environment and Public on Commerce, Science, and Transportation. United States. Wendy Wagenheim Works. EC–11769. A communication from the Act- serves as Legislative Director for the EC–11760. A communication from the Dep- ing Assistant Secretary, Pension and Welfare American Civil Liberties Union of uty Associate Administrator, Environmental Benefits Administration, Department of Protection Agency, transmitting, pursuant Labor, transmitting, pursuant to law, the re- Michigan. Their combined experience port of a rule entitled ‘‘Amendments to Sum- in government, community service and to law, the report of a rule entitled ‘‘Ap- proval and Promulgation of Implementation mary Plan Description Regulations’’ public relations was invaluable in the Plans and Designation of Areas for Air Qual- (RIN1210–AA69 and 1210–AA–55) received on All Kids First initiative. Together, Mr. ity Planning Purposes; Ohio’’ (FRL #694–71) November 27, 2000; to the Committee on Wheeler and Ms. Wagenheim partici- received on December 5, 2000; to the Com- Health, Education, Labor, and Pensions. pated in more than 45 debates about mittee on Environment and Public Works. EC–11770. A communication from the Act- Proposal 1 throughout the state of EC–11761. A communication from the Sec- ing Assistant Secretary, Pension and Welfare Benefits Administration, Department of Michigan. Their efforts were instru- retary of the Department of Agriculture, transmitting, pursuant to law, the report of Labor, transmitting, pursuant to law, the re- mental in defeating the proposal and in port of a rule entitled ‘‘Employee Retire- the rule entitled ‘‘National Forest System ensuring that all of Michigan’s public ment Income Security Act of 1974; Rules and Land and Resource Management Planning’’ Regulations for Administration and Enforce- schools will have adequate resources to (RIN0596–AB20) received on November 9, 2000; ment; Claims Procedure’’ (RIN1210–AA61) re- educate our children. to the Committee on Agriculture, Nutrition, ceived on November 27, 2000; to the Com- Mr. President, I hope my colleagues and Forestry. mittee on Health, Education, Labor, and will join me in congratulating Dr. EC–11762. A communication from the Sec- Pensions. Charles Adams, Heaster Wheeler and retary of the Department of Agriculture, EC–11771. A communication from the Di- Wendy Wagenheim as they are honored transmitting, pursuant to law, the corrected rector of the Corporate Policy and Research for their leadership of Michigan’s All report (reference to ec11596) of the rule enti- Department, Pension Benefit Guaranty Cor- Kids First initiative, and in encour- tled ‘‘Non-citizen Eligibility and Certifi- poration, transmitting, pursuant to law, the cation Provisions of the Personal Responsi- aging them to keep fighting on behalf report of a rule entitled ‘‘Benefits Payable in bility and Work Opportunity Reconciliation Terminated Single-Employer Plans; Alloca- of Michigan’s children and to improve Act (PRWORA) of 1996’’ (RIN0584–AC40) re- Michigan’s public schools.∑ tion of Assets in Single-Employer Plans; In- ceived on November 27, 2000; to the Com- terest Assumptions for Valuing and Paying f mittee on Agriculture, Nutrition, and For- Benefits’’ received on November 27, 2000; to estry. MESSAGES FROM THE HOUSE the Committee on Health, Education, Labor, EC–11763. A communication from the Dep- and Pensions. At 3:55 p.m., a message from the uty Associate Administrator, Environmental EC–11772. A communication from the Act- House of Representatives, delivered by Protection Agency, transmitting, pursuant ing Assistant General Counsel for Regula- one of its clerks, announced that the to law, the report of a rule entitled tions, Office of Special Education and Reha- House has passed the following joint ‘‘Fludioxonil; Extension of Tolerance for bilitative Services, Department of Edu- Emergency Exemptions’’ (FRL #6756–6) re- resolution, in which it requests the cation, transmitting, pursuant to law, the ceived on December 5, 2000; to the Committee report of a rule entitled ‘‘Special Demonstra- concurrence of the Senate: on Agriculture, Nutrition, and Forestry. tion Programs’’ (34 CFR Part 373) received on H.J. Res. 127. Joint Resolution making fur- EC–11764. A communication from the Dep- December 5, 2000; to the Committee on ther continuing appropriations for the fiscal uty Associate Administrator, Environmental Health, Education, Labor, and Pensions. year 2001, and for other purposes. Protection Agency, transmitting, pursuant EC–11773. A communication from the Di- ENROLLED BILL SIGNED to law, the report of a rule entitled rector of the Regulations Policy and Man- At 4:39 p.m., a message from the ‘‘Avermectin; Extension of Tolerance for agement Staff, Food and Drug Administra- House of Representatives, delivered by Emergency Exemptions’’ (FRL #6754–5) re- tion, Department of Health and Human Serv- ceived on December 5, 2000; to the Committee ices, transmitting, pursuant to law, the re- one of its clerks, announced that the on Agriculture, Nutrition, and Forestry. port of a rule entitled ‘‘Listing of Color Ad- Speaker has signed the following en- EC–11765. A communication from the Sec- ditives Exempt From Certification; Lumi- rolled joint resolution: retary of the Federal Trade Commission, nescent Zinc Sulfide; Correction’’ (Docket H.J. Res. 127. Joint Resolution making fur- transmitting, pursuant to law, the report of No. 97C–0415) received on December 5, 2000; to ther continuing appropriations for the fiscal a rule entitled ‘‘Rules and Regulations under the Committee on Health, Education, Labor, year 2001, and for other purposes. the Textile Fiber Products Identification and Pensions.

VerDate 06-DEC-2000 03:36 Dec 08, 2000 Jkt 089060 PO 00000 Frm 00076 Fmt 4624 Sfmt 0634 E:\CR\FM\G07DE6.109 pfrm02 PsN: S07PT1 December 7, 2000 CONGRESSIONAL RECORD — SENATE S11739 EC–11774. A communication from the Di- tional Labor Relations Board, transmitting, and second times by unanimous con- rector of the Regulations Policy and Man- pursuant to the Inspector General Act, the sent, and referred as indicated: agement Staff, Food and Drug Administra- semiannual report for the period April 1, 2000 By Mr. DOMENICI (for himself and Mr. tion, Department of Health and Human Serv- through September 30, 2000; to the Com- LUGAR): ices, transmitting, pursuant to law, the re- mittee on Governmental Affairs. S. 3275. A bill to authorize the Secretary of port of a rule entitled ‘‘Indirect Food Addi- EC–11786. A communication from the Chair Energy to guarantee loans to facilitate nu- tives: Paper and Paperboard Component’’ of the Railroad Retirement Board, transmit- clear nonproliferation programs and activi- (Docket No. 99F–1719) received on December ting, pursuant to the Inspector General Act, ties of the Government of the Russian Fed- 5, 2000; to the Committee on Health, Edu- the semiannual report for the period April 1, eration, and for other purposes; to the Com- cation, Labor, and Pensions. 2000 through September 30, 2000; to the Com- mittee on Foreign Relations. EC–11775. A communication from the Di- mittee on Governmental Affairs. rector of the Regulations Policy and Man- EC–11787. A communication from the Cor- f agement Staff, Food and Drug Administra- poration for National Service, transmitting, tion, Department of Health and Human Serv- pursuant to the Inspector General Act, the SUBMISSION OF CONCURRENT AND ices, transmitting, pursuant to law, the re- semiannual report for the period April 1, 2000 SENATE RESOLUTIONS port of a rule entitled ‘‘Secondary Direct through September 30, 2000 as well as a re- The following concurrent resolutions Food Additives Permitted in Food for port on final action; to the Committee on Human Consumption’’ (Docket No. 00F–1332) and Senate resolutions were read, and Governmental Affairs. referred (or acted upon), as indicated: received on December 5, 2000; to the Com- EC–11788. A communication from the Ad- mittee on Health, Education, Labor, and ministrator, General Services Administra- By Mr. DURBIN (for himself and Mr. Pensions. tion, transmitting, pursuant to the Inspector FITZGERALD): EC–11776. A communication from the Di- General Act, the semiannual report; to the S. Res. 385. A resolution congratulating the rector of the Regulations Policy and Man- Committee on Governmental Affairs. Reverend Clay Evans of Chicago, Illinois, on agement Staff, Food and Drug Administra- EC–11789. A communication from the Sec- the occasion of his retirement; considered tion, Department of Health and Human Serv- retary of the Interior, transmitting, pursu- and agreed to. ices, transmitting, pursuant to law, the re- ant to the Inspector General Act, the semi- By Mr. SMITH of New Hampshire (for port of a rule entitled ‘‘Irradiation in the annual report for the period April 1, 2000 himself, Mr. INOUYE, Mr. HELMS, and Production, Processing, and Handling of through September 30, 2000; to the Com- Mr. INHOFE): Food’’ (Docket No. 99F–1912) received on De- mittee on Governmental Affairs. S. Res. 386. A resolution expressing the cember 5, 2000; to the Committee on Health, EC–11790. A communication from the sense of the Senate regarding National Pearl Education, Labor, and Pensions. Chairman of the National Science Board, Harbor Remembrance Day; considered and EC–11777. A communication from the Sec- agreed to. retary of Education, transmitting, pursuant transmitting, pursuant to the Inspector Gen- to law, a report relative to the national advi- eral Act, the semiannual report for the pe- f sory committee on institutional quality and riod April 1, 2000 through September 30, 2000; integrity for fiscal year 2000; to the Com- to the Committee on Governmental Affairs. STATEMENTS ON INTRODUCED mittee on Health, Education, Labor, and EC–11791. A communication from the Di- BILLS AND JOINT RESOLUTIONS Pensions. rector of the Peace Corps, transmitting, pur- Mr. DOMENICI (for himself and EC–11778. A communication from the Sec- suant to the Inspector General Act, the Mr. LUGAR): retary of Education, transmitting, pursuant semiannual report for the period April 1, 2000 to the Inspector General Act, the semiannual through September 30, 2000; to the Com- S. 3275. A bill to authorize the Sec- report; to the Committee on Health, Edu- mittee on Governmental Affairs. retary of Energy to guarantee loans to cation, Labor, and Pensions. EC–11792. A communication from the Act- facilitate nuclear nonproliferation pro- EC–11779. A communication from the As- ing Secretary of Veterans Affairs, transmit- grams and activities of the Govern- sistant Legal Adviser for Treaty Affairs, De- ting, pursuant to the Inspector General Act, ment of the Russian Federation, and partment of State, transmitting, pursuant to the semiannual report for the period April 1, for other purposes; to the Committee law, the report of the texts of international 2000 through September 30, 2000; to the Com- on Foreign Relations. agreements, other than treaties, and back- mittee on Governmental Affairs. ground statements; to the Committee on EC–11793. A communication from the Di- FISSILE MATERIAL LOAN GUARANTEE ACT Foreign Relations. rector of the Workforce Compensation and Mr. DOMENICI. Mr. President, I rise EC–11780. A communication from the As- Performance Service, Office of Personnel to introduce the Fissile Material Loan sistant Secretary (Legal Affairs), Depart- Management, transmitting, pursuant to law, Guarantee Act. This Act is intended to ment of State, transmitting, pursuant to the report of a rule entitled ‘‘Pay Under the law, the report of a rule entitled ‘‘Visas: Im- increase the arsenal of programs that General Schedule; Locality-Based Com- reduce proliferation threats from the migrant Religious Workers’’ (RIN4710–06) re- parability Payments’’ (RIN3206–AJ07) re- ceived on December 7, 2000; to the Committee ceived on December 5, 2000; to the Committee Russian nuclear weapons complex. on Foreign Relations. on Governmental Affairs. This Act presents an unusual option, EC–11781. A communication from the Dep- EC–11794. A communication from the At- which I’ve been discussing with the uty General Counsel, Office of Size Stand- torney-Advisor Federal Register Certifying leadership of some of the world’s larg- ards, Small Business Administration, trans- Officer, Financial Management Service, De- est private banks and lending institu- mitting, pursuant to law, the report of a rule partment of the Treasury, transmitting, pur- tions and with senior officials of the entitled ‘‘Small Business Size Standards; suant to law, the report of a rule entitled Health Care’’ (RIN3245–AE06) received on De- Russian Federation’s Ministry for ‘‘Federal Claims Collection Standards’’ Atomic Energy. I also am aware that cember 5, 2000; to the Committee on Small (RIN1510–AA57 and 1105–AA31) received on Business. November 9, 2000; to the Committee on Fi- discussions between Western lending EC–11782. A communication from the Dep- nance. institutions and the Russian Federa- uty General Counsel, Office of Small Busi- f tion are progressing well and that dis- ness Investment Companies, Small Business cussions with the International Atomic Administration, transmitting, pursuant to NOMINATION DISCHARGED law, the report of a rule entitled ‘‘Small Energy Authority or IAEA have helped Business Investment Companies; ‘Cost of Pursuant to a unanimous consent to clarify their responsibilities. Money’ Limitations’’ (RIN3245–AE49) re- agreement of December 7, 2000, the This Act would enable the imposition ceived on December 5, 2000; to the Committee Committee on Foreign Relations was of international protective safeguards on Small Business. discharged of the following nomina- on new, large stocks of Russian weap- EC–11783. A communication from the tion: ons-ready materials in a way that en- Chairman, Centennial of Flight Commission, ables the Russian Federation to gain in concurrence with the National Aero- DEPARTMENT OF STATE near-term financial resources from the nautics Space Administration Adminis- Richard N. Gardner, of New York, to be an trator, transmitting, pursuant to law, the Alternate Representative of the United same materials. The Act requires that annual report for fiscal year 2000; to the States of America to the Fifty-fifth Session these resources be used in support of Committee on Governmental Affairs. of the General Assembly of the United Na- non-proliferation or energy programs EC–11784. A communication from the Presi- tions. within Russia. It also requires that the dent of the United States, transmitting, pur- f materials used to collateralize these suant to law, a report relative to the alter- loans must remain under international native plan for federal employee locality- INTRODUCTION OF BILLS AND IAEA safeguards forevermore. based comparability payments; to the Com- JOINT RESOLUTIONS mittee on Governmental Affairs. This Act does not replace programs EC–11785. A communication from the The following bills and joint resolu- that currently are in place to ensure Chairman and the General Counsel of the Na- tions were introduced, read the first that weapons-grade materials can

VerDate 06-DEC-2000 04:42 Dec 08, 2000 Jkt 089060 PO 00000 Frm 00077 Fmt 4624 Sfmt 0634 E:\CR\FM\A07DE6.039 pfrm02 PsN: S07PT1 S11740 CONGRESSIONAL RECORD — SENATE December 7, 2000 never be used in weapons in the future. from Indiana (Mr. LUGAR) was added as resolution; which was considered and The Highly Enriched Uranium or HEU a cosponsor of S. Con. Res. 87, a con- agreed to: Agreement is moving toward elimi- current resolution commending the S. RES. 386 nation of 500 tons of Russian weapons- Holy See for making significant con- Whereas on December 7, 1941, the Imperial grade uranium. The Plutonium Dis- tributions to international peace and Japanese Navy and Air Force attacked units position Agreement is similarly work- human rights, and objecting to efforts of the Armed Forces of the United States ing on elimination of 34 tons of Russian to expel the Holy See from the United stationed at Pearl Harbor, Hawaii; weapons-grade plutonium. Nations by removing the Holy See’s Whereas 2,403 members of the Armed The HEU agreement removes mate- Permanent Observer status in the Forces of the United States were killed in rial usable in 20,000 nuclear weapons, United Nations, and for other purposes. the attack on Pearl Harbor; Whereas there are currently more than while the plutonium disposition agree- f 12,000 members of the Pearl Harbor Survivors ment similarly removes material for SENATE RESOLUTION 385—CON- Association; more than 4,000 nuclear weapons. Both Whereas the 60th anniversary of the attack of these agreements enable the transi- GRATULATING THE REVEREND on Pearl Harbor will be on December 7, 2001; tion of Russian materials into commer- CLAY EVANS OF CHICAGO, IL, ON Whereas on August 23, 1994, Public Law cial reactor fuel, which, after use in a THE OCCASION OF HIS RETIRE- 103–308 was enacted, designating December 7 reactor, destroys its ‘‘weapons-grade’’ MENT of each year as National Pearl Harbor Re- attributes. There should be no question Mr. DURBIN (for himself and Mr. membrance Day; Whereas Public Law 103–308, reenacted as that both these agreements remain of FITZGERALD) submitted the following section 129 of title 36, United States Code, re- vital importance to both nations. resolution; which was considered and quests the President to issue a proclamation But estimates are that the Russian agreed to: each year calling on the people of the United Federation has vast stocks of weapons- S. RES. 395 States to observe National Pearl Harbor Re- grade materials in addition to the Whereas Reverend Clay Evans was or- membrance Day with appropriate cere- amounts they’ve already declared as dained as a Baptist minister 50 years ago, in monies and activities, and for all depart- surplus to their weapons needs in these 1950, and founded and served as the Pastor of ments, agencies, and instrumentalities of the earlier agreements. If we can provide the Fellowship Missionary Baptist Church in Federal Government, and interested organi- Chicago, Illinois, for 49 years; zations, groups, and individuals, to fly the additional incentives to Russia to en- flag of the United States at half-staff each courage transition of more of these ma- Whereas Reverend Evans has been happily married to Lutha Mae Hollinshed Evans for December 7 in honor of the individuals who terials into configurations where it is over 50 years, and with her is the proud par- died as a result of their service at Pearl Har- not available for diversion or re-use in ent of five children; bor; weapons, we’ve made another signifi- Whereas Reverend Evans has been respon- Whereas many citizens remain unaware of cant step toward global stability. sible for helping launch the ministerial ca- National Pearl Harbor Remembrance Day; By introducing this Act now, Mr. reers of 93 individuals, including 6 female and President, I’m hoping that this concept ministers; Whereas many Federal offices do not lower their flags to half-staff each December 7: will be carefully reviewed by all inter- Whereas Reverend Evans received Hon- orary Doctorate of Divinity Degrees from Now, therefore, be it ested parties—by the new Administra- Resolved, That the Senate— tion, by lending institutions, and by Arkansas Baptist College and Brewster Theological Clinic and School of Religion; (1) pays tribute to the citizens of the the Russian Federation. My hope is Whereas Reverend Evans has been an ac- United States who died in the attack on that in the next Congress, these inter- tive participant in the Civil Rights Move- Pearl Harbor, Hawaii, on December 7, 1941, ests can come together to enable this ment since 1965; and to the members of the Pearl Harbor Sur- new approach to still further reduce Whereas Reverend Evans is the founding vivors Association; and the proliferation threats from surplus National Board Chairman of Operation (2) urges the President to take more active P.U.S.H. and currently serves as its Chair- steps— weapons materials in the Russian nu- (A) to inform the American public of the clear weapons complex. man Emeritus; Whereas Reverend Evans is Founding existence of National Pearl Harbor Remem- f President of the Broadcast Ministers Alli- brance Day; and (B) to ensure that the flag of the United ADDITIONAL COSPONSORS ance of Chicago, Founding President of the African American Religious Connection, States is flown at half-staff in accordance S. 1915 Trustee Board Chairman of Chicago Baptist with section 129 of title 36, United States At the request of Mr. JEFFORDS, the Institute, and Board member of the National Code. name of the Senator from Washington Baptist Covention, U.S.A., Inc.; f Whereas Reverend Evans is a featured solo- (Mrs. MURRAY) was added as a cospon- NOTICE OF HEARING sor of S. 1915, a bill to enhance the ist on numerous albums of the 250 Voice services provided by the Environ- Choir of Fellowship Missionary Baptist COMMITTEE ON ENERGY AND NATURAL Church and 1996 Stellar Award winner of the RESOURCES mental Protection Agency to small #1 Gospel Album ‘‘I’ve Got a Testimony’’; communities that are attempting to Mr. MURKOWSKI. Mr. President, I Whereas Reverend Evans authored a 1992 would like to announce for the infor- comply with national, State, and local autobiographical book, ‘‘From Plough Han- environmental regulations. dle to Pulpit,’’ which sold thousands of cop- mation of the Senate and the public that an oversight hearing has been S. 3175 ies and was rewritten in 1997; Now, therefore, be it scheduled before the Committee on En- At the request of Mr. CRAIG, the Resolved, That the Senate— ergy and Natural Resources. name of the Senator from Oregon (Mr. (1) congratulates the Reverend Clay Evans The hearing will take place on Tues- WYDEN) was added as a cosponsor of S. on his retirement as Pastor of the Fellow- day, December 12, 2000 at 9:30 a.m. in 3175, a bill to amend the Consolidated ship Missionary Baptist Church; room SD–366 of the Dirksen Senate Of- Farm and Rural Development Act to (2) acknowledges the affection that Rev- fice Building in Washington, D.C. authorize the National Rural Develop- erend Evans’ congregation shares for him; and The title of this hearing is ‘‘Natural ment Partnership, and for other pur- Gas Markets: One Year After the Na- poses. (3) extends its best wishes to Reverend Evans and his family on the occasion of his tional Petroleum Council’s Gas Re- S. 3250 retirement. port.’’ At the request of Mr. BROWNBACK, the f Because of the limited time available name of the Senator from Indiana (Mr. for the hearing, witnesses may testify BAYH) was added as a cosponsor of S. SENATE RESOLUTION 386— by invitation only. However, those 3250, a bill to provide for a United EXPRESING THE SENSE OF THE wishing to submit written testimony States response in the event of a uni- SENATE REGARDING NATIONAL for the hearing record should send two lateral declaration of a Palestinian PEARL HARBOR REMEMBRANCE copies of their testimony to the Com- state. DAY mittee on Energy and Natural Re- S. CON. RES. 87 Mr. SMITH of New Hampshire (for sources, United States Senate, 364 At the request of Mr. SMITH of New himself, Mr. INOUYE, Mr. HELMS, and Dirksen Senate Office Building, Wash- Hampshire, the name of the Senator Mr. INHOFE) submitted the following ington, D.C. 20510–6150.

VerDate 06-DEC-2000 04:42 Dec 08, 2000 Jkt 089060 PO 00000 Frm 00078 Fmt 4624 Sfmt 0634 E:\CR\FM\A07DE6.043 pfrm02 PsN: S07PT1 December 7, 2000 CONGRESSIONAL RECORD — SENATE S11741 For further information, please call Resolved, That the bill from the Senate (S. expertise of the State and/or the services and ex- Trici Heninger or Bryan Hannegan at 1694) entitled ‘‘An Act to direct the Sec- pertise of a private consultant employed under (202) 224–7932. retary of the Interior to conduct a study on contract with the State to conduct the study the reclamation and reuse of water and and prepare the reports described in this section f wastewater in the State of Hawaii’’, do pass if the State requests such an arrangement and if NATIONAL FOREST AND PUBLIC with the following amendments: it can be demonstrated to the satisfaction of the LANDS OF NEVADA ENHANCE- Strike out all after the enacting clause and Secretary that such an arrangement will result insert: MENT ACT OF 1988 AMENDMENTS in the satisfactory completion of the work au- thorized by this section in a timely manner and AND BOUNDARY ADJUSTMENT TITLE I—HAWAII WATER RESOURCES STUDY at a reduced cost. OF THE TOIYABE NATIONAL SEC. 101. SHORT TITLE. (e) AUTHORIZATION OF APPROPRIATIONS.— FOREST This title may be cited as the ‘‘Hawaii Water There are authorized to be appropriated $300,000 Mr. HAGEL. Mr. President, I ask Resources Act of 2000’’. for the Federal share of the activities authorized under this title. that the Chair lay before the Senate a SEC. 102. DEFINITIONS. message from the House of Representa- In this title: SEC. 104. WATER RECLAMATION AND REUSE. tives on the bill (S. 439). (1) SECRETARY.—The term ‘‘Secretary’’ means (a) Section 1602(b) of the Reclamation Waste- water and Groundwater Study and Facilities The PRESIDING OFFICER laid be- the Secretary of the Interior. (2) STATE.—The term ‘‘State’’ means the State Act (43 U.S.C. 390h(b)) is amended by inserting fore the Senate the following message of Hawaii. before the period at the end the following: ‘‘, from the House of Representatives: SEC. 103. HAWAII WATER RESOURCES STUDY. and the State of Hawaii’’. Resolved, That the bill from the Senate (S. (a) IN GENERAL.—The Secretary, acting (b) The Secretary is authorized to use the au- 439) entitled ‘‘An Act to amend the National through the Commissioner of Reclamation and thorities available pursuant to section 1602(b) of Forest and Public Lands of Nevada Enhance- in accordance with the provisions of this title the Reclamation Wastewater and Groundwater ment Act of 1988 to adjust the boundary of and existing legislative authorities as may be Study and Facilities Act (43 U.S.C. 390h(b)) to the Toiyabe National Forest, Nevada’’, do pertinent to the provisions of this title, includ- conduct the relevant portion of the study and pass with the following amendments: ing: the Act of August 23, 1954 (68 Stat. 773, preparation of the reports authorized by this Strike out all after the enacting clause and chapter 838), authorizing the Secretary to inves- title if the use of such authorities is found by insert: tigate the use of irrigation and reclamation re- the Secretary to be appropriate and cost-effec- SECTION 1. ADJUSTMENT OF BOUNDARY OF THE source needs for areas of the islands of Oahu, tive, and provided that the total Federal share TOIYABE NATIONAL FOREST, NE- Hawaii, and Molokai in the State of Hawaii; of costs for the study and reports does not ex- VADA. section 31 of the Hawaii Omnibus Act (43 U.S.C. ceed the amount authorized in section 103. Section 4(a) of the National Forest and Public 422l) authorizing the Secretary to develop rec- TITLE II—DROUGHT RELIEF Lands of Nevada Enhancement Act of 1988 (102 lamation projects in the State under the Act of Stat. 2750) is amended— SEC. 201. DROUGHT RELIEF. August 6, 1956 (70 Stat. 1044, chapter 972; 42 (1) by striking ‘‘Effective’’ and inserting ‘‘(1) (a) RELIEF FOR HAWAII.—Section 104 of the U.S.C. 422a et seq.) (commonly known as the Effective’’; and Reclamation States Emergency Drought Relief (2) by adding at the end the following: ‘‘Small Reclamation Projects Act’’); and the Act of 1991 (43 U.S.C. 2214) is amended— ‘‘(2) Effective on the date of enactment of this amendment made by section 207 of the Hawaiian (1) in subsection (a), by inserting after ‘‘Rec- paragraph, the portion of the land transferred Home Lands Recovery Act (109 Stat. 364; 25 lamation State’’ the following: ‘‘and in the State to the Secretary of Agriculture under paragraph U.S.C. 386a) authorizing the Secretary to assess of Hawaii’’; and (1) situated between the lines marked ‘Old For- charges against Native Hawaiians for reclama- (2) in subsection (c), by striking ‘‘ten years est Boundary’ and ‘Revised National Forest tion cost recovery in the same manner as after the date of enactment of this Act’’ and in- Boundary’ on the map entitled ‘Nevada Inter- charges are assessed against Indians or Indian serting ‘‘on September 30, 2005’’. change ‘‘A’’, Change 1’, and dated September tribes; is authorized and directed to conduct a (b) ASSISTANCE FOR DROUGHT-RELATED PLAN- 16, 1998, is transferred to the Secretary of the study that includes— NING IN RECLAMATION STATES.—Such Act is fur- Interior.’’. (1) a survey of the irrigation and other agri- ther amended by adding at the end of title I the cultural water delivery systems in the State; following: SEC. 2. OVERTIME PAY FOR CERTAIN FIRE- (2) an estimation of the cost of repair and re- FIGHTERS. ‘‘SEC. 105. ASSISTANCE FOR DROUGHT-RELATED habilitation of the irrigation and other agricul- (a) IN GENERAL.—Section 5542(a) of title 5, PLANNING IN RECLAMATION United States Code, is amended by adding at the tural water delivery systems; STATES. (3) an evaluation of options and alternatives end the following: ‘‘(a) IN GENERAL.—The Secretary may provide ‘‘(5) Notwithstanding paragraphs (1) and (2), for future use of the irrigation and other agri- financial assistance in the form of cooperative for an employee of the Department of the Inte- cultural water delivery systems (including alter- agreements in States that are eligible to receive rior or the United States Forest Service in the natives that would improve the use and con- drought assistance under this title to promote Department of Agriculture engaged in emer- servation of water resources and would con- the development of drought contingency plans gency wildland fire suppression activities, the tribute to agricultural diversification, economic under title II. overtime hourly rate of pay is an amount equal development, and improvements to environ- ‘‘(b) REPORT.—Not later than one year after to one and one-half times the hourly rate of mental quality); and the date of the enactment of the Hawaii Water (4) the identification and investigation of op- basic pay of the employee, and all that amount Resources Act of 2000, the Secretary shall submit portunities for recycling, reclamation, and reuse is premium pay.’’. to the Congress a report and recommendations of water and wastewater for agricultural and (b) EFFECTIVE DATE.—The amendments made on the advisability of providing financial assist- by this section shall take effect on the first day nonagricultural purposes. ance for the development of drought contin- (b) REPORTS.— of the first applicable pay period beginning on gency plans in all entities that are eligible to re- (1) IN GENERAL.—Not later than 2 years after ceive assistance under title II.’’. or after the end of the 30-day period beginning appropriation of funds authorized by this title, on the date of the enactment of this Act, and the Secretary shall submit a report that de- TITLE III—CITY OF ROSEVILLE PUMPING shall apply only to funds appropriated after the scribes the findings and recommendations of the PLANT FACILITIES date of the enactment of this Act. study described in subsection (a) to— SEC. 301. CITY OF ROSEVILLE PUMPING PLANT Amend the title so as to read ‘‘An Act to (A) the Committee on Energy and Natural Re- FACILITIES: CREDIT FOR INSTALLA- amend the National Forest and Public Lands sources of the Senate; and TION OF ADDITIONAL PUMPING of Nevada Enhancement Act of 1988 to adjust (B) the Committee on Resources of the House PLANT FACILITIES IN ACCORDANCE the boundary of the Toiyabe National For- of Representatives. WITH AGREEMENT. est, Nevada, and to amend chapter 55 of title (2) ADDITIONAL REPORTS.—The Secretary shall (a) IN GENERAL.—The Secretary shall credit 5, United States Code, to authorize equal submit to the committees described in paragraph an amount up to $1,164,600, the precise amount overtime pay provisions for all Federal em- (1) any additional reports concerning the study to be determined by the Secretary through a cost ployees engaged in wildland fire suppression described in subsection (a) that the Secretary allocation, to the unpaid capital obligation of operations.’’. considers to be necessary. the City of Roseville, California (in this section f (c) COST SHARING.—Costs of conducting the referred to as the ‘‘City’’), as such obligation is study and preparing the reports described in calculated in accordance with applicable Fed- HAWAII WATER RESOURCES ACT subsections (a) and (b) of this section shall be eral reclamation law and Central Valley Project OF 2000 shared between the Secretary and the State. The rate setting policy, in recognition of future ben- Mr. HAGEL. Mr. President, I ask Federal share of the costs of the study and re- efits to be accrued by the United States as a re- that the Chair lay before the Senate a ports shall not exceed 50 percent of the total sult of the City’s purchase and funding of the installation of additional pumping plant facili- message from the House of Representa- cost, and shall be nonreimbursable. The Sec- retary shall enter into a written agreement with ties in accordance with a letter of agreement tives on the bill (S. 1694). the State, describing the arrangements for pay- with the United States numbered 5–07–20–X0331 The PRESIDING OFFICER laid be- ment of the non-Federal share. and dated January 26, 1995. The Secretary shall fore the Senate the following message (d) USE OF OUTSIDE CONTRACTORS.—The Sec- simultaneously add an equivalent amount of from the House of Representatives: retary is authorized to employ the services and costs to the capital costs of the Central Valley

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Project, and such added costs shall be reim- (1) BUREAU.—The term ‘‘Bureau’’ means the amount of costs repaid by the District from the bursed in accordance with reclamation law and Bureau of Reclamation. pooled reimbursable costs of the Central Valley policy. (2) DISTRICT.—The term ‘‘District’’ means the Project until such time as the Project has been (b) EFFECTIVE DATE.—The credit under sub- Foresthill Public Utility District, a political sub- operationally integrated into the water supply section (a) shall take effect upon the date on division of the State of California. of the Central Valley Project. Such excess costs which— (3) PROJECT.—The term ‘‘Project’’ means the may not be included into the pooled reimburs- (1) the City and the Secretary have agreed improvements (and associated interests) author- able costs of the Central Valley Project in the that the installation of the facilities referred to ized in the Foresthill Divide Subunit of the Au- future unless a court of competent jurisdiction in subsection (a) has been completed in accord- burn-Folsom South Unit, Central Valley Project, determines that operation integration is not a ance with the terms and conditions of the letter consisting of— prerequisite to the inclusion of such costs pursu- of agreement referred to in subsection (a); and (A) Sugar Pine Dam; ant to Public Law 89–161. (2) the Secretary has issued a determination (B) the right to impound waters behind the TITLE VI—COLUSA BASIN WATERSHED that such facilities are fully operative as in- dam; INTEGRATED RESOURCES MANAGEMENT tended. (C) the associated conveyance system, holding TITLE IV—CLEAR CREEK DISTRIBUTION reservoir, and treatment plant; SEC. 601. SHORT TITLE. SYSTEM CONVEYANCE (D) water rights; This title may be cited as the ‘‘Colusa Basin Watershed Integrated Resources Management SEC. 401. SHORT TITLE. (E) rights of the Bureau described in the Act’’. This title may be cited as the ‘‘Clear Creek agreement of June 11, 1985, with the Supervisor Distribution System Conveyance Act’’. of Tahoe National Forest, California; and SEC. 602. AUTHORIZATION OF ASSISTANCE. (F) other associated interests owned and held SEC. 402. DEFINITIONS. The Secretary of the Interior (in this title re- by the United States and authorized as part of For purposes of this title: ferred to as the ‘‘Secretary’’), acting within ex- the Auburn-Folsom South Unit under Public (1) SECRETARY.—The term ‘‘Secretary’’ means isting budgetary authority, may provide finan- the Secretary of the Interior. Law 89–161 (79 Stat. 615). cial assistance to the Colusa Basin Drainage (2) DISTRICT.—The term ‘‘District’’ means the (4) SECRETARY.—The term ‘‘Secretary’’ means District, California (in this title referred to as Clear Creek Community Services District, a Cali- the Secretary of the Interior. the ‘‘District’’), for use by the District or by fornia community services district located in (5) WATER SERVICES CONTRACT.—The term local agencies acting pursuant to section 413 of Shasta County, California. ‘‘Water Services Contract’’ means Water Serv- the State of California statute known as the (3) AGREEMENT.—The term ‘‘Agreement’’ ices Contract #14–06–200–3684A, dated February Colusa Basin Drainage Act (California Stats. means Agreement No. 8–07–20–L6975 entitled 13, 1978, between the District and the United 1987, ch. 1399) as in effect on the date of the en- ‘‘Agreement Between the United States and the States. actment of this Act (in this title referred to as Clear Creek Community Services District to SEC. 503. CONVEYANCE OF THE PROJECT. the ‘‘State statute’’), for planning, design, envi- Transfer Title to the Clear Creek Distribution (a) IN GENERAL.—As soon as practicable after ronmental compliance, and construction re- System to the Clear Creek Community Services date of the enactment of this Act and in accord- quired in carrying out eligible projects in the District’’. ance with all applicable law, the Secretary shall Colusa Basin Watershed to— (4) DISTRIBUTION SYSTEM.—The term ‘‘Dis- convey all right, title, and interest in and to the (1)(A) reduce the risk of damage to urban and tribution System’’ means all the right, title, and Project to the District. agricultural areas from flooding or the dis- interest in and to the Clear Creek distribution (b) SALE PRICE.—Except as provided in sub- charge of drainage water or tailwater; system as defined in the Agreement. section (c), on payment by the District to the (B) assist in groundwater recharge efforts to SEC. 403. CONVEYANCE OF DISTRIBUTION SYS- Secretary of $2,772,221— alleviate overdraft and land subsidence; or TEM. (1) the District shall be relieved of all payment (C) construct, restore, or preserve wetland and In consideration of the District accepting the obligations relating to the Project; and riparian habitat; and obligations of the Federal Government for the (2) all debt under the Water Services Contract (2) capture, as an incidental purpose of any of Distribution System, the Secretary shall convey shall be extinguished. the purposes referred to in paragraph (1), sur- the Distribution System to the District pursuant (c) MITIGATION AND RESTORATION PAY- face or stormwater for conservation, conjunctive to the terms and conditions set forth in the MENTS.—The District shall continue to be obli- use, and increased water supplies. Agreement. gated to make payments under section 3407(c) of SEC. 603. PROJECT SELECTION. SEC. 404. RELATIONSHIP TO EXISTING OPER- the Central Valley Project Improvement Act (106 (a) ELIGIBLE PROJECTS.—A project shall be an ATIONS. Stat. 4726) through 2029. eligible project for purposes of section 602 only Nothing in this title shall be construed to au- SEC. 504. RELATIONSHIP TO EXISTING OPER- if it is— thorize the District to construct any new facili- ATIONS. (1) consistent with the plan for flood protec- ties or to expand or otherwise change the use or (a) IN GENERAL.—Nothing in this title signifi- tion and integrated resources management de- operation of the Distribution System from its au- cantly expands or otherwise affects the use or scribed in the document entitled ‘‘Draft Pro- thorized purposes based upon historic and cur- operation of the Project from its current use and grammatic Environmental Impact Statement/En- rent use and operation. Effective upon transfer, operation. vironmental Impact Report and Draft Program if the District proposes to alter the use or oper- (b) RIGHT TO OCCUPY AND FLOOD.—On the Financing Plan, Integrated Resources Manage- ation of the Distribution System, then the Dis- date of the conveyance under section 503, the ment Program for Flood Control in the Colusa trict shall comply with all applicable laws and Chief of the Forest Service shall grant the Dis- Basin’’, dated May 2000; and regulations governing such changes at that trict the right to occupy and flood portions of (2) carried out in accordance with that docu- time. land in Tahoe National Forest, subject to the ment and all environmental documentation re- SEC. 405. RELATIONSHIP TO CERTAIN CONTRACT terms and conditions stated in an agreement be- quirements that apply to the project under the OBLIGATIONS. tween the District and the Supervisor of the laws of the United States and the State of Cali- Conveyance of the Distribution System under Tahoe National Forest. fornia. this title— (c) CHANGES IN USE OR OPERATION.—If the (b) COMPATIBILITY REQUIREMENT.—The Sec- (1) shall not affect any of the provisions of the District changes the use or operation of the retary shall ensure that projects for which as- District’s existing water service contract with Project, the District shall comply with all appli- sistance is provided under this title are not in- the United States (contract number 14–06–200– cable laws (including regulations) governing the consistent with watershed protection and envi- 489–IR3), as it may be amended or supple- change at the time of the change. ronmental restoration efforts being carried out mented; and SEC. 505. FUTURE BENEFITS. under the authority of the Central Valley (2) shall not deprive the District of any exist- On payment of the amount under section Project Improvement Act (Public Law 102–575; ing contractual or statutory entitlement to sub- 503(b)— 106 Stat. 4706 et seq.) or the CALFED Bay-Delta sequent interim renewals of such contract or to (1) the Project shall no longer be a Federal Program. renewal by entering into a long-term water serv- reclamation project or a unit of the Central Val- SEC. 604. COST SHARING. ice contract. ley Project; and (a) NON-FEDERAL SHARE.—The Secretary shall SEC. 406. LIABILITY. (2) the District shall not be entitled to receive require that the District and cooperating non- Effective on the date of conveyance of the any further reclamation benefits. Federal agencies or organizations pay— Distribution System under this title, the United SEC. 506. LIABILITY. (1) 25 percent of the costs associated with con- States shall not be liable under any law for Except as otherwise provided by law, effective struction of any project carried out with assist- damages of any kind arising out of any act, on the date of conveyance under section 503, the ance provided under this title; omission, or occurrence based on its prior own- United States shall not be liable for damages of (2) 100 percent of any operation, maintenance, ership or operation of the conveyed property. any kind arising out of any act, omission, or oc- and replacement and rehabilitation costs with TITLE V—SUGAR PINE DAM AND currence based on its prior ownership or oper- respect to such a project; and RESERVOIR CONVEYANCE ation of the Project. (3) 35 percent of the costs associated with SEC. 501. SHORT TITLE. SEC. 507. COSTS. planning, design, and environmental compliance This title may be cited as the ‘‘Sugar Pine To the extent that costs associated with the activities. Dam and Reservoir Conveyance Act’’. Project are included as a reimbursable cost of (b) PLANNING, DESIGN, AND COMPLIANCE AS- SEC. 502. DEFINITIONS. the Central Valley Project, the Secretary is di- SISTANCE.—Funds appropriated pursuant to this In this title: rected to exclude all costs in excess of the title may be made available to fund 65 percent of

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costs incurred for planning, design, and envi- (A) All right, title, and interest of the United (10) A reservation of 1⁄16 of all gas, oil, metals, ronmental compliance activities by the District States in and to the lands comprising Section 23, and mineral rights retained by the State of Ari- or by local agencies acting pursuant to the State Township 11 South, Range 24 West, G&SRBM, zona. statute, in accordance with agreements with the Lots 1–4, NE1⁄4, N1⁄2 NW1⁄4, excluding lands lo- (11) Such additional terms and conditions as Secretary. cated within the 60-foot border strip, in Yuma the Secretary considers appropriate to protect (c) TREATMENT OF CONTRIBUTIONS.—For pur- County, Arizona. the interests of the United States. poses of this section, the Secretary shall treat (B) All right, title, and interest of the United (c) CONSIDERATION.— the value of lands, interests in lands (including States in and to the lands comprising Section 22, (1) IN GENERAL.—As consideration for the con- rights-of-way and other easements), and nec- Township 11 South, Range 24 West, G&SRBM, veyance under subsection (a), the Greater Yuma essary relocations contributed by the District to East 300 feet of Lot 1, excluding lands located Port Authority shall pay the United States con- a project as a payment by the District of the within the 60-foot border strip, in Yuma County, sideration equal to the fair market value on the costs of the project. Arizona. date of the enactment of this Act of the interest SEC. 605. COSTS NONREIMBURSABLE. (C) All right, title, and interest of the United conveyed. Amounts expended pursuant to this title shall States in and to the lands comprising Section 24, (2) DETERMINATION.—For purposes of para- be considered nonreimbursable for purposes of Township 11 South, Range 24 West, G&SRBM, graph (1), the fair market value of any interest the Act of June 17, 1902 (32 Stat. 388; 43 U.S.C. West 300 feet, excluding lands in the 60-foot bor- in land shall be determined taking into account 371 et seq.), and Acts amendatory thereof and der strip, in Yuma County, Arizona. that the land is undeveloped, that 80 acres is in- (D) All right, title, and interest of the United supplemental thereto. tended to be dedicated to use by the United States in and to the lands comprising the East SEC. 606. AGREEMENTS. States for Federal governmental purposes, and 300 feet of the Southeast Quarter of Section 15, that an additional substantial portion of the Funds appropriated pursuant to this title may Township 11 South, Range 24 West, G&SRBM, be made available to the District or a local agen- land is dedicated to public right-of-way, high- in Yuma County, Arizona. way, and transportation purposes. cy only if the District or local agency, as appli- (E) The right to use lands in the 60-foot bor- (d) USE.—The Greater Yuma Port Authority cable, has entered into a binding agreement der strip excluded under subparagraphs (A), and its successors shall use the interests con- with the Secretary— (B), and (C), for ingress to and egress from the veyed solely for the purpose of the construction (1) under which the District or the local agen- international boundary between the United and operation of an international port of entry cy is required to pay the non-Federal share of States and Mexico. and related activities. the costs of construction required by section (b) DEED COVENANTS AND CONDITIONS.—Any OMPLIANCE WITH LAWS.—Before the date 604(a); and conveyance under subsection (a) shall be subject (e) C (2) governing the funding of planning, design, to the following covenants and conditions: of the conveyance, actions required with respect and compliance activities costs under section (1) A reservation of rights-of-way for ditches to the conveyance under the National Environ- 604(b). and canals constructed or to be constructed by mental Policy Act of 1969 (42 U.S.C. 4321 et SEC. 607. REIMBURSEMENT. the authority of the United States, this reserva- seq.), the Endangered Species Act of 1973 (16 For project work (including work associated tion being of the same character and scope as U.S.C. 1531 et seq.), the National Historic Pres- with studies, planning, design, and construc- that created with respect to certain public lands ervation Act (16 U.S.C. 470 et seq.), and other tion) carried out by the District or by a local by the Act of August 30, 1890 (26 Stat. 391; 43 applicable Federal laws must be completed at no agency acting pursuant to the State statute in U.S.C. 945), as it has been, or may hereafter be cost to the United States. section 602 before the date amounts are provided amended. (f) USE OF 60-FOOT BORDER STRIP.—Any use for the project under this title, the Secretary (2) A leasehold interest in Lot 1, and the west of the 60-foot border strip shall be made in co- shall, subject to amounts being made available 100 feet of Lot 2 in Section 23 for the operation ordination with Federal agencies having au- in advance in appropriations Acts, reimburse of a Cattle Crossing Facility, currently being op- thority with respect to the 60-foot border strip. the District or the local agency, without inter- erated by the Yuma-Sonora Commercial Com- (g) DESCRIPTION OF PROPERTY.—The exact est, an amount equal to the estimated Federal pany, Incorporated. The lease as currently held acreage and legal description of property con- share of the cost of such work under section 604. contains 24.68 acres, more or less. Any renewal veyed under this section, and of any right-of- way that is subject to a right of use conveyed SEC. 608. COOPERATIVE AGREEMENTS. or termination of the lease shall be by the Great- pursuant to subsection (a)(2)(E), shall be deter- (a) IN GENERAL.—The Secretary may enter er Yuma Port Authority. into cooperative agreements and contracts with (3) Reservation by the United States of a 245- mined by a survey satisfactory to the Secretary. the District to assist the Secretary in carrying foot perpetual easement for operation and main- The cost of the survey shall be borne by the out the purposes of this title. tenance of the 242 Lateral Canal and Well Field Greater Yuma Port Authority. (h) DEFINITIONS.— (b) SUBCONTRACTING.—Under such cooperative along the northern boundary of the East 300 agreements and contracts, the Secretary may feet of Section 22, Section 23, and the West 300 (1) 60-FOOT BORDER STRIP.—The term ‘‘60-foot authorize the District to manage and let con- feet of Section 24 as shown on Reclamation border strip’’ means lands in any of the Sections tracts and receive reimbursements, subject to Drawing Nos. 1292–303–3624, 1292–303–3625, and of land referred to in this Act located within 60 amounts being made available in advance in ap- 1292–303–3626. feet of the international boundary between the propriations Acts, for work carried out under (4) A reservation by the United States of all United States and Mexico. (2) GREATER YUMA PORT AUTHORITY.—The such contracts or subcontracts. rights to the ground water in the East 300 feet of Section 15, the East 300 feet of Section 22, term ‘‘Greater Yuma Port Authority’’ means SEC. 609. RELATIONSHIP TO RECLAMATION RE- Trust No. 84–184, Yuma Title & Trust Company, FORM ACT OF 1982. Section 23, and the West 300 feet of Section 24, Activities carried out, and financial assistance and the right to remove, sell, transfer, or ex- an Arizona Corporation, a trust for the benefit provided, under this title shall not be considered change the water to meet the obligations of the of the Cocopah Tribe, a Sovereign Nation, the a supplemental or additional benefit for pur- Treaty of 1944 with the Republic of Mexico, and County of Yuma, Arizona, the City of Somerton, poses of the Reclamation Reform Act of 1982 (96 Minute Order No. 242 for the delivery of salinity and the City of San Luis, Arizona, or such other Stat. 1263; 43 U.S.C. 390aa et seq.). controlled water to Mexico. successor joint powers agency or public purpose (5) A reservation of all rights-of-way and entity as unanimously designated by those gov- SEC. 610. APPROPRIATIONS AUTHORIZED. easements existing or of record in favor of the ernmental units. Within existing budgetary authority and sub- public or third parties. (3) SECRETARY.—The term ‘‘Secretary’’ means ject to the availability of appropriations, the (6) A right-of-way reservation in favor of the the Secretary of the Interior, acting through the Secretary is authorized to expend up to United States and its contractors, and the State Bureau of Reclamation. $25,000,000, plus such additional amount, if any, of Arizona, and its contractors, to utilize a 33- as may be required by reason of changes in costs TITLE VIII—DICKINSON DAM BASCULE foot easement along all section lines to freely GATES SETTLEMENT of services of the types involved in the District’s give ingress to, passage over, and egress from SEC. 801. SHORT TITLE. projects as shown by engineering and other rel- areas in the exercise of official duties of the evant indexes to carry out this title. Sums ap- United States and the State of Arizona. This title may be cited as the ‘‘Dickinson Dam propriated under this section shall remain avail- (7) Reservation of a right-of-way to the Bascule Gates Settlement Act of 2000’’. able until expended. United States for a 100-foot by 100-foot parcel SEC. 802. FINDINGS. TITLE VII—CONVEYANCE TO YUMA PORT for each of the Reclamation monitoring wells, The Congress finds that— AUTHORITY together with unrestricted ingress and egress to (1) in 1980 and 1981, the Bureau of Reclama- SEC. 701. CONVEYANCE OF LANDS TO THE GREAT- both sites. One monitoring well is located in Lot tion constructed the bascule gates on top of the ER YUMA PORT AUTHORITY. 1 of Section 23 just north of the Boundary Re- Dickinson Dam on the Heart River, North Da- (a) AUTHORITY TO CONVEY.— serve and just west of the Cattle Crossing Facil- kota, to provide additional water supply in the (1) IN GENERAL.—The Secretary of the Inte- ity, and the other is located in the southeast reservoir known as Patterson Lake for the city rior, acting through the Bureau of Reclamation, corner of Lot 3 just north of the Boundary Re- of Dickinson, North Dakota, and for additional may, in the 5-year period beginning on the date serve. flood control and other benefits; of the enactment of this Act and in accordance (8) An easement comprising a 50-foot strip (2) the gates had to be significantly modified with the conditions specified in subsection (b) lying North of the 60-foot International Bound- in 1982 because of damage resulting from a large convey to the Greater Yuma Port Authority the ary Reserve for drilling and operation of, and ice block causing excessive pressure on the hy- interests described in paragraph (2). access to, wells. draulic system, causing the system to fail; (2) INTERESTS DESCRIBED.—The interests re- (9) A reservation by the United States of 15⁄16 (3) since 1991, the City has received its water ferred to in paragraph (1) are the following: of all gas, oil, metals, and mineral rights. supply from the Southwest Water Authority,

VerDate 06-DEC-2000 03:36 Dec 08, 2000 Jkt 089060 PO 00000 Frm 00081 Fmt 4624 Sfmt 6333 E:\CR\FM\A07DE6.033 pfrm02 PsN: S07PT1 S11744 CONGRESSIONAL RECORD — SENATE December 7, 2000 which provides much higher quality water from A bill (H.R. 5461) to amend the Magnuson- ministration with tools to address fin- the Southwest Pipeline Project; Stevens Fisheries Conservation and Manage- ning by foreign nations as well. As a (4) the City now receives almost no benefit ment Act to eliminate the wasteful and un- result, the current bill does not con- from the bascule gates because the City does not sportsmanlike practice of shark finning. tain the strong international enforce- require the additional water provided by the There being no objection, the Senate bascule gates for its municipal water supply; ment measures of the Shark Conserva- (5) the City has repaid more than $1,200,000 to proceeded to consider the bill. tion Act. Dr. Andrew Rosenberg of the the United States for the construction of the Mr. HOLLINGS. Mr. President, I rise National Marine Fisheries Service, in bascule gates, and has been working for several to make a few remarks on H.R. 5461, October 1999 testimony before the years to reach an agreement with the Bureau of the Shark Finning Prohibition Act, House warned of the consequences of Reclamation to alter its repayment contract; legislation to begin, and I stress the failing to impose international meas- (6) the City has a longstanding commitment to word begin, to ensure the conservation ures against shark finning: improving the water quality and recreation of sharks, including addressing the . . . even with implementation of new U.S. value of the reservoir and has been working causes and consequences of shark fin- with the United States Geological Survey, the management measures to prohibit shark fin- North Dakota Department of Game and Fish, ning. ning, in all likelihood, foreign-flagged ves- and the North Dakota Department of Health to First, I want to recognize Ms. SNOW, sels will continue shark finning in inter- improve water quality; and our chairman on the Oceans and Fish- national waters. In the absence of strict (7) it is in the public interest to resolve this eries Subcommittee on the Commerce international measures to prohibit shark fin- ning, the anticipated result of new U.S. pro- issue by providing for a single payment to the Committee, and Mr. KERRY, ranking hibitions would be that foreign vessels will United States in lieu of the scheduled annual member of the subcommittee, for put- payments and for the termination of any further develop new shipment routes for shark fins ting shark conservation legislation on through ports outside Hawaii. repayment obligation. the committee agenda this Congress. SEC. 803. DEFINITIONS. The administration’s warning should In this title: My colleagues recognized the substan- be taken seriously. When all the press (1) BASCULE GATES.—The term ‘‘bascule tial danger international fleets pose to releases and headlines have faded from gates’’ means the structure constructed on the sharks around the world, either as a re- memory, there is no doubt that foreign Dam to provide additional water storage capac- sult of direct harvest, high bycatch, or fleets will silently, and happily, con- ity in the Lake. practices such as shark finning. As tinue—or even increase—shark finning, (2) CITY.—The term ‘‘City’’ means the city of with so many of our highly migratory with no adverse repercussions to speak Dickinson, North Dakota. and protected species, we cannot hope (3) DAM.—The term ‘‘Dam’’ means Dickinson of. We sincerely hope that H.R. 5461 Dam on the Heart River, North Dakota. to address these threats solely through will not merely shift shark-finning and (4) LAKE.—The term ‘‘Lake’’ means the res- domestic action. the resulting profits over to foreign na- ervoir known as ‘‘Patterson Lake’’ in the State We are here today because of the tions and international corporations, of North Dakota. growing threats to shark populations, with no net benefit to shark conserva- (5) SECRETARY.—The term ‘‘Secretary’’ means which are particularly vulnerable to tion. The only way to prevent this is by the Secretary of the Interior, acting through the harvest and bycatch mortality. Most Commissioner of the Bureau of Reclamation. applying these rules to everyone. Sim- attention has been focused specifically ply enacting H.R. 5461 without address- SEC. 804. FORGIVENESS OF DEBT. on the practice of shark finning, which (a) IN GENERAL.—The Secretary shall accept a ing shark conservation internationally 1-time payment of $300,000 in lieu of the existing has increased dramatically over the is short-sighted and will not solve the repayment obligations of the City under the Bu- past decade, driven by rising demand problem. In the next Congress, I intend reau of Reclamation Contract No. 9–07–60W0384, for fins in the world market. However, to continue working with my col- dated December 19, 1988, toward which amount there are other threats to shark con- leagues in the Senate, House, and the any payments made by the City to the Secretary servation, including directed shark new administration, whichever admin- on or after June 2, 1998, shall be credited. fisheries and the use of non-selective istration that may turn out to be, to (b) OWNERSHIP.—Title to the Dam and bascule fishing gear, that must be given fur- gates shall remain with the United States. craft a solution that will lead to the (c) COSTS.—(1) The Secretary shall enter into ther attention, both here and abroad. eventual cessation of finning inter- an agreement with the City to allocate respon- In addition, the amount of finning done nationally. sibilities for operation and maintenance costs of by U.S. fishermen pales by comparison Although I do believe that the cur- the bascule gates as provided in this subsection. to the amount of finning done by for- rent bill is not as strong as it should (2) The City shall be responsible for operation eign fleets outside of U.S. waters. The be, I am glad to report it contains a and maintenance costs of the bascule gates, up global shark fin trade involves at least number of provisions from the Senate to a maximum annual cost of $15,000. The Sec- 125 countries, and the demand for retary shall be responsible for all other costs. bill that will lay the foundation for ad- (d) WATER SERVICE CONTRACTS.—The Sec- shark fins and other shark products dressing the international fishing prac- retary may enter into appropriate water service has driven dramatic increases in shark tices that threaten shark conservation contracts if the City or any other person or enti- fishing and shark mortality around the efforts, including the practice of fin- ty seeks to use water from the Lake for munic- world. In 1998, the National Marine ning. H.R. 5461 begins the critical proc- ipal water supply or other purposes. Fisheries Service estimated that 120 ess of collecting the information, in- Amend the title so as to read ‘‘An Act to metric tons of shark fins were landed cluding data on the international direct the Secretary of the Interior to con- in Hawaii that had been caught by for- duct a study on the reclamation and reuse of shark fin trade, that is so lacking at water and wastewater in the State of Hawaii, eign vessels, with a value between the present time by: (1) directing the and for other purposes.’’. $2,376,000 and $2,640,000. That is roughly administration to initiate or continue Mr. HAGEL. Mr. President, I ask four times the amount landed by U.S. discussions with other countries to ban unanimous consent that the Senate vessels in the same year. These figures shark finning; (2) requiring the collec- agree to amendments of the House with include only figures for shark fins that tion of information on trade in shark respect to each of these measures. happen to go through U.S. ports in the fins and directing the Secretary to re- The PRESIDING OFFICER. Without Pacific; the total amount of finning by port the findings to Congress; and (3) objection, it is so ordered. foreign fishermen is undoubtedly much establishing a research program to help f higher. improve shark stock assessments, re- Although I support the legislation duce incidental catch, and better uti- AMENDMENT TO THE MAGNUSON- before us today, I am disappointed that lize sharks captured legally. STEVENS FISHERIES CONSERVA- we were not able to convince House Let me conclude by stating that I TION AND MANAGEMENT ACT Members and others that passage of S. rise in support of this legislation and Mr. HAGEL. Mr. President, I ask 2831, the Shark Conservation Act of urge its adoption, but I cannot help but unanimous consent that the Senate 2000, introduced by Senator KERRY, and think of what we may have been able now proceed to the consideration of supported by our subcommittee mem- to accomplish with passage of Mr. H.R. 5461, which is at the desk. bers, was the best course of action to KERRY’s bill, S. 2831. H.R. 5461 does The PRESIDING OFFICER. The take this year. S. 2831 attempted to ad- take an important first step to end the clerk will report the bill by title. dress threats to shark conservation in practice of finning, but it is only the The assistant legislative clerk read a holistic manner. It looked beyond do- first step—the real work is yet to as follows: mestic finning, and provided the ad- come.

VerDate 06-DEC-2000 03:36 Dec 08, 2000 Jkt 089060 PO 00000 Frm 00082 Fmt 4624 Sfmt 0634 E:\CR\FM\A07DE6.033 pfrm02 PsN: S07PT1 December 7, 2000 CONGRESSIONAL RECORD — SENATE S11745 Mr. KERRY. Mr. President, I rise to ning; (2) established a procedure to cer- The legislative clerk read as follows: make a few remarks in support of H.R. tify whether governments have adopted A resolution (S. Res. 385) congratulating 5461, the Shark Finning Prohibition shark conservation measures; (3) the Reverend Clay Evans of Chicago, Illinois, Act, which will the Senate has passed banned the import of sharks or shark on the occasion of his retirement. today and which will be forwarded to parts from countries that do not meet There being no objection, the Senate President Clinton for his signature. these certification procedures; and (4) proceeded to consider the resolution. H.R. 5461 is identical to a provision I provided technical assistance to for- Mr. HAGEL. I ask unanimous con- authored, along with Senator SNOWE, eign nations in an attempt to promote sent that the resolution be agreed to, in Senate Amendment 4320. That provi- compliance. the preamble be agreed to, the motion sion was then introduced in the House Unfortunately, this comprehensive to reconsider be laid upon the table, by Representative CUNNINGHAM as a proposal was rejected by the House. We and any statements related to the bill stand alone bill and passed the House therefore sought the middle ground of be printed in the RECORD. on October 30, 2000. I want to thank the proposal in H.R. 5461. The legisla- The PRESIDING OFFICER. Without Senators HOLLINGS and SNOWE, who tion we will pass today (1) calls on the objection, it is so ordered. helped move this legislation through Administration to initiate or continue The resolution (S. Res. 385) was the Commerce Committee and the Sen- discussions with other countries to ban agreed to. ate. And, I thank Representative shark finning; (2) requires the collec- The preamble was agreed to. CUNNINGHAM for his work. tion of information on trade in shark The resolution, with its preamble, Shark finning is the practice of fins and directing the Secretary of reads as follows: catching a shark, removing its fins and Commerce to report the findings to S. RES. 385 returning the remainder of the shark Congress; and (3) establishes a research Whereas the Reverend Clay Evans was or- to the sea. It is highly wasteful prac- program to help improve shark stock dained as a Baptist minister 50 years ago, in tice since only a very small portion of assessments, reduce incidental catch, 1950, and founded and served as the Pastor of the shark is consumed and the rest is and better utilize shark captured le- the Fellowship Missionary Baptist Church in dumped back into the sea. The Na- gally. This is a start, but only a start. Chicago, Illinois, for 49 years; tional Marine Fisheries Service al- I hope that my colleagues and the ad- Whereas Reverend Evans has been happily ready prohibits shark finning in the vocacy groups that advocated for this married to Lutha Mae Hollinshed Evans for over 50 years, and with her is the proud par- Atlantic and Gulf of Mexico. This legis- proposal will continue to work for ad- lation would expand that ban into the ent of five children; ditional international conservation Whereas Reverend Evans has been respon- Pacific and create a consistent na- measures. sible for helping launch the ministerial ca- tional policy by amending the Magnu- Finally, my bill would authorize a reers of 93 individuals, including 6 female son-Stevens Fishery Conservation and Western Pacific longline fisheries coop- ministers; Management Act. erative research program to provide in- Whereas Reverend Evans received Hon- Sharks are among the most bio- formation for shark stock assessments, orary Doctorate of Divinity Degrees from logically vulnerable species in the identify fishing gear and practices that Arkansas Baptist College and Brewster ocean. Their slow growth, late matu- prevent or minimize incidental catch Theological Clinic and School of Religion; rity and small number of offspring Whereas Reverend Evans has been an ac- of sharks and ensure maximum survi- tive participant in the Civil Rights Move- leave them exceptionally vulnerable to vorship of released sharks, and provide ment since 1965; over fishing and slow to recover from data on the international shark fin Whereas Reverend Evans is the founding depletion. At the same time, sharks, as trade. National Board Chairman of Operation top predators, are essential to main- Mr. President, the United States is a P.U.S.H. and currently serves as its Chair- taining the balance of life in the sea. global leader in fisheries conservation man Emeritus; While many of our other highly migra- and management. I believe this legisla- Whereas Reverend Evans is Founding tory species such as tunas and sword- tion provides us the opportunity to fur- President of the Broadcast Ministers Alli- fish are subject to rigorous manage- ance of Chicago, Founding President of the ther this role, and take the first step in African American Religious Connection, ment regimes, sharks have largely been addressing an international fisheries Trustee Board Chairman of Chicago Baptist overlooked until recently. By ending management issue. In addition, I be- Institute, and Board member of the National the wasteful practice of finning, we lieve the U.S. should continue to lead Baptist Convention, U.S.A., Inc.; will, I hope, protect shark populations. efforts at the United Nations and inter- Whereas Reverend Evans is a featured solo- However, it is important that the national conventions to achieve coordi- ist on numerous albums of the 250 Voice passage of this legislation is only the nated international management of Choir of Fellowship Missionary Baptist beginning of national efforts to protect sharks, including an international ban Church and 1996 Stellar Award winner of the #1 Gospel Album ‘‘I’ve Got A Testimony’’; sharks and their marine ecosystems. on shark-finning. I look forward to There are other threats to sharks in Whereas Reverend Evans authored a 1992 working with Committee members on autobiographical book, ‘‘From Plough Han- addition to finning in domestic waters. this important legislation. dle to Pulpit,’’ which sold thousands of cop- These include directed fisheries, by- Mr. HAGEL. Mr. President, I ask ies and was rewritten in 1997; Now, therefore, catch and the use of non-selective gear. unanimous consent that the bill be be it And, importantly, we must recognize read the third time and passed, the mo- Resolved, That the Senate— that shark finning takes place in for- tion to reconsider be laid upon the (1) congratulates the Reverend Clay Evans eign and international waters, not just table, and that any statements relating on his retirement as Pastor of the Fellow- ship Missionary Baptist Church; the United States waters. The global to the bill be printed in the RECORD. shark fin trade involves at least 125 (2) acknowledges the affection that Rev- The PRESIDING OFFICER. Without erend Evans’ congregation shares for him; countries, and the demand for shark objection, it is so ordered. and fins and other shark products has driv- The bill (H.R. 5461) was read the third (3) extends its best wishes to Reverend en dramatic increases in shark fishing time and passed. Evans and his family on the occasion of his and shark mortality around the world. f retirement. We must tackle these issues, as well. f I want to note that in the Commerce CONGRATULATING REVEREND Committee we tried to address the CLAY EVANS NATIONAL PEARL HARBOR issue of international shark finning Mr. HAGEL. Mr. President, I ask REMEMBRANCE DAY more aggressively and, I believe, more unanimous consent that the Senate Mr. HAGEL. I ask unanimous con- appropriately. Senator HOLLINGS and I proceed to the immediate consider- sent that the Senate now proceed to introduced S. 2831, the Shark Conserva- ation of S. Res. 385 introduced earlier the immediate consideration of S. Res. tion Act of 2000. This proposal would today by Senators DURBIN and FITZ- 386, submitted earlier by Senator BOB have (1) mandated that the Secretary GERALD. SMITH. of Commerce report to Congress on The PRESIDING OFFICER. The The PRESIDING OFFICER. The progress being made domestically and clerk will report the resolution by clerk will report the resolution by internationally to reduce shark fin- title. title.

VerDate 06-DEC-2000 03:36 Dec 08, 2000 Jkt 089060 PO 00000 Frm 00083 Fmt 4624 Sfmt 0634 E:\CR\FM\G07DE6.111 pfrm02 PsN: S07PT1 S11746 CONGRESSIONAL RECORD — SENATE December 7, 2000 The legislative clerk read as follows: with section 129 of title 36, United States expected to consider a continuing reso- A resolution (S. Res. 386) expressing the Code. lution that would continue funding sense of the Senate regarding National Pearl f through Tuesday, December 12 early Harbor Remembrance Day. ORDERS FOR FRIDAY, DECEMBER tomorrow morning. It is the intention There being no objection, the Senate 8, 2000 of the Senate to pass the continuing proceeded to consider the resolution. resolution by voice vote as soon as it is Mr. HAGEL. I ask unanimous con- Mr. HAGEL. Mr. President, I ask received from the House. Therefore no sent that the resolution be agreed to, unanimous consent that when the Sen- votes are expected prior to Tuesday, the preamble be agreed to, the motion ate completes its business today, it re- December 12, at a time to be deter- to reconsider be laid upon the table, cess until the hour of 10 a.m. on Fri- mined. and any statements related to the reso- day, December 8. I further ask consent f lution be printed in the RECORD. that on Friday, immediately following the prayer, the Journal of proceedings The PRESIDING OFFICER. Without EXECUTIVE SESSION objection, it is so ordered. be approved to date, the time for the The resolution (S. Res. 386) was two leaders be reserved for their use Mr. HAGEL. Mr. President, in execu- agreed to. later in the day, and the Senate then tive session I ask unanimous consent The preamble was agreed to. begin a period of morning business the Foreign Relations Committee be The resolution, with its preamble, until 10:30 a.m., with Senators per- discharged from further consideration reads as follows: mitted to speak for up to 10 minutes of the nomination of Richard N. Gard- S. RES. 386 each with the time equally divided in ner, the Senate immediately proceed to Whereas on December 7, 1941, the Imperial the usual form. his consideration, the nomination be Japanese Navy and Air Force attacked units Mr. REID. Mr. President, reserving confirmed, the motion to reconsider be of the Armed Forces of the United States the right to object, I say to my friend laid upon the table, the President be stationed at Pearl Harbor, Hawaii; from Nebraska, the acting leader, it is immediately notified of the Senate’s Whereas 2,403 members of the Armed my understanding we are going to try action, and the Senate then return to Forces of the United States were killed in to extend the CR until Monday. I hope legislative session. the attack on Pearl Harbor; in the spirit that was felt around here The PRESIDING OFFICER. Without Whereas there are currently more than today, that we were going to try to objection, it is so ordered. 12,000 members of the Pearl Harbor Survivors Association; complete this session’s work sometime The nomination considered and con- Whereas the 60th anniversary of the attack next week, we can continue that. firmed is as follows: on Pearl Harbor will be on December 7, 2001; I do say, just as a warning to every- DEPARTMENT OF STATE Whereas on August 23, 1994, Public Law one, we have been to this point on a Richard N. Gardner, of New York, to be an 103–308 was enacted, designating December 7 number of occasions before with this Alternate Representative of the United of each year as National Pearl Harbor Re- session of Congress. It seems we can States of America to the Fifty-fifth Session membrance Day; never quite get over the goal line. of the General Assembly of the United Na- Whereas Public Law 103-308, reenacted as tions. section 129 of title 36, United States Code, re- I hope all Members, Democrats and quests the President to issue a proclamation Republicans, will do their utmost to f each year calling on the people of the United try to work this out. We have four ap- States to observe National Pearl Harbor Re- propriations bills that are badly need- LEGISLATIVE SESSION membrance Day with appropriate cere- ed. In my opinion—and I think every- The PRESIDING OFFICER. Under monies and activities, and for all depart- one in the minority agrees—it would be ments, agencies, and instrumentalities of the the previous order, the Senate will re- a shame if we were unable to complete sume legislative session. Federal Government, and interested organi- those bills and have to go forward with zations, groups, and individuals, to fly the f flag of the United States at half-staff each a continuing resolution, in effect dumping all that in the lap of the new December 7 in honor of the individuals who RECESS UNTIL 10 A.M. TOMORROW died as a result of their service at Pearl Har- President and new Congress. bor; Of course, I am not going to object to Mr. HAGEL. Mr. President, if there is Whereas many citizens remain unaware of my friend’s unanimous consent re- no further business to come before the National Pearl Harbor Remembrance Day; quest, but I do say we should really try Senate, I now ask unanimous consent and to put our shoulders to the wheel and that the Senate stand in recess under Whereas many Federal offices do not lower push this session over the goal line. the previous order. their flags to half-staff each December 7: Now, therefore, be it Mr. HAGEL. I thank the Senator. I There being no objection, the Senate, Resolved, That the Senate— know that is the intent of the leader- at 5:24 p.m., recessed until Friday, De- (1) pays tribute to the citizens of the ship. cember 8, 2000, at 10 a.m. United States who died in the attack on The PRESIDING OFFICER. Is there f Pearl Harbor, Hawaii, on December 7, 1941, objection? Without objection, it is so and to the members of the Pearl Harbor Sur- ordered. CONFIRMATION vivors Association; and f (2) urges the President to take more active Executive nomination confirmed by steps— PROGRAM the Senate December 7, 2000: (A) to inform the American public of the DEPARTMENT OF STATE existence of National Pearl Harbor Remem- Mr. HAGEL. Mr. President, for the brance Day; and information of all Senators, the Senate RICHARD N. GARDNER, OF NEW YORK, TO BE AN ALTER- will be in a period of morning business NATE REPRESENTATIVE OF THE UNITED STATES OF (B) to ensure that the flag of the United AMERICA TO THE FIFTY-FIFTH SESSION OF THE GEN- States is flown at half-staff in accordance until 10:30 a.m. tomorrow. The House is ERAL ASSEMBLY OF THE UNITED NATIONS.

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