E PL UR UM IB N U U S Congressional Record United States of America PROCEEDINGS AND DEBATES OF THE 107th CONGRESS, FIRST SESSION

Vol. 147 WASHINGTON, THURSDAY, DECEMBER 20, 2001 No. 178 House of Representatives The House met at 10 a.m. of Peace and Light, Lord of Justice. for 1 minute and to revise and extend The Reverend Msgr. Peter J. Vaghi, Amen. his remarks.) Pastor, St. Patrick Catholic Church, f Washington, D.C., offered the following Mr. FERGUSON. Mr. Speaker, I rise prayer: THE JOURNAL today to honor Monsignor Peter Vaghi Almighty God, we call upon You this The SPEAKER. The Chair has exam- for his dedicated service to St. Pat- cold December morning. You are Light ined the Journal of the last day’s pro- rick’s Church here in Washington, D.C. of Lights and Light From Light. You ceedings and announces to the House Monsignor Vaghi was born here in are the Light who pierces the perennial his approval thereof. Washington, D.C., and attended Gon- darkness of our world, the darkness of Pursuant to clause 1, rule I, the Jour- zaga College High School and the Col- our mind and soul, the darkness of a nal stands approved. lege of the Holy Cross, where he was world at war. Because of You, O living f and true God, we live, walk, and have awarded a Fulbright Scholarship to at- our being. You are Emmanuel, God- PLEDGE OF ALLEGIANCE tend the University of Salzburg in Aus- with-us. The SPEAKER. Will the gentle- tria. We pray to You this day that passage woman from North Carolina (Mrs. Returning home to America, he went from the Advent prophet Isaiah: ‘‘Let MYRICK) come forward and lead the on to get his juris doctor at the Univer- justice descend, O heavens, like the House in the Pledge of Allegiance. dew from above, like gentle rain let the Mrs. MYRICK led the Pledge of Alle- sity of Virginia Law School and skies drop it down. Let earth open and giance as follows: worked in Washington, D.C., before he salvation bud forth; let justice also I pledge allegiance to the Flag of the answered a calling to the priesthood spring up.’’ United States of America, and to the Repub- and attended the Gregorian University We pray also for peace. Peace in our lic for which it stands, one nation under God, in Rome, Italy. world begins with peace in our hearts. indivisible, with liberty and justice for all. Monsignor Vaghi was ordained a And peace in our hearts comes from f You, Almighty Father. Draw near to us Catholic priest on June 29, 1985, and and grant us Your peace. INTRODUCTION OF REVEREND designated a ‘‘Prelate of Honor’’ by Encourage us, O Lord, in this holy MONSIGNOR PETER VAGHI Pope John Paul II on November 13, season in all our humble efforts carried (Mr. FERGUSON asked and was 1995. out in Your life-giving name, O Prince given permission to address the House

NOTICE—DECEMBER 20, 2001 A final issue of the Congressional Record for the 107th Congress, 1st Session, will be published on January 3, 2002, in order to permit Members to revise and extend their remarks. All material for insertion must be signed by the Member and delivered to the office of the Official Reporters of Debates, Room 1718 Longworth House Office Building by noon January 3, 2002. The House Office of the Official Reporters will be open in 1718 Longworth House Office Building December 26, 27, 28 and January 2 and 3 between the hours of 9:00 a.m. and 6:00 p.m. The final issue will be dated January 3, 2002, and will be delivered on Friday, January 4, 2002. None of the material printed in the final issue of the Congressional Record may contain subject matter, or relate to any event that occurred after the sine die date. Members of Congress desiring to purchase reprints of material submitted for inclusion in the Congressional Record may do so by contacting the Congressional Printing Management Division, at the Government Printing Office, on 512–0224, between the hours of 8:00 a.m. and 4:00 p.m. daily. By order of the Joint Committee on Printing. MARK DAYTON, Chairman.

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

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VerDate 10-DEC-2001 01:46 Dec 22, 2001 Jkt 099060 PO 00000 Frm 00001 Fmt 7634 Sfmt 8633 E:\CR\FM\A20DE7.000 pfrm02 PsN: H20PT1 H10914 CONGRESSIONAL RECORD — HOUSE December 20, 2001 Mr. Speaker, it is my privilege to patrols, port security, bioterrorism This conference report provides $478 welcome Monsignor Vaghi to this prevention, and the FBI. million to combat chemical and bio- House. He is not only a family friend, Lastly, Mr. Speaker, this bill con- logical attacks against the military but he also gave my wife Maureen and tains our strong support for the people and $404 million for the Nunn-Lugar me the honor of officiating at our wed- of New York by providing another $8.2 nuclear nonproliferation program. It ding in 1996. I thank him for being here billion in disaster assistance, including provides for a significant military pay today. His presence and his blessing on $2 billion in community development raise and for substantial increases in this House and on our work here means block grants. critical readiness accounts; and it so very much to me and to every Mem- Mr. Speaker, we are about to go strengthens research for tomorrow’s ber of this body. home for the holidays and after the weapons and equipment while pro- events of this fall, I cannot think of a viding the weapons and equipment the f better thing to do before we leave town U.S. military needs today. WAIVING POINTS OF ORDER than to provide for our armed forces, Mr. Speaker, I am especially pleased AGAINST CONFERENCE REPORT for our fight against terrorism, and for by the substantial quality-of-life im- ON H.R. 3338, DEPARTMENT OF the victims of September 11. provements funded by this conference DEFENSE APPROPRIATIONS ACT, Mr. Speaker, I reserve the balance of report. It includes funding for a signifi- 2002 my time. cant pay raise of between 5 and 10 per- Mr. FROST. Mr. Speaker, I yield my- cent for every member of the military. Mrs. MYRICK. Mr. Speaker, by direc- self such time as I may consume. tion of the Committee on Rules, I call And to boost critical midlevel per- Mr. Speaker, as we speak, the brave sonnel retention, much of the pay raise up House Resolution 324 and ask for its men and women of the U.S. military immediate consideration. will be directed towards junior officers. are halfway around the world waging It also significantly increases funding The Clerk read the resolution as fol- and winning the war on terrorism. lows: for health benefits for service members Their courage and professionalism are and their families. H. RES. 324 a fitting tribute to the strength and I am also pleased that this con- Resolved, That upon adoption of this reso- unity of the United States of America. ference report continues to fund the lution it shall be in order to consider the Meanwhile, here at home, domestic wide range of weapons programs that conference report to accompany the bill security has become our top priority, ensure our military’s superiority (H.R. 3338) making appropriations for the De- and thanks to the funding priorities in partment of Defense for the fiscal year end- throughout the world. For instance, it this conference report, America will includes more than $2.6 billion for the ing September 30, 2002, and for other pur- now be better prepared to prevent, de- poses. All points of order against the con- initial production of 13 of the F–22 ference report and against its consideration fend against, and recover from any fu- Raptor aircraft, the next-generation are waived. The conference report shall be ture terrorist attacks. air dominance fighter for the Air considered as read. I am very pleased that the conference Force. The conference report also pro- report more closely reflects Demo- The SPEAKER pro tempore (Mr. vides $882 million for research and de- cratic priorities on homeland defense CAMP). The gentlewoman from North velopment for this aircraft. than was provided in the House-passed Carolina (Mrs. MYRICK) is recognized Additionally, Mr. Speaker, the con- bill. Specifically, it provides more for 1 hour. ference report provides $1.5 billion for funding for nuclear, border, port, avia- Mrs. MYRICK. Mr. Speaker, for pur- continued development of the Joint tion and bioterrorism priorities. On poses of debate only, I yield the cus- Strike Fighter, the high-technology bioterrorism alone, Democrats were tomary 30 minutes to the gentleman multirole fighter of the future for the able to secure $2.5 billion, $1 billion Air Force, the Navy, and the Marines. from Texas (Mr. FROST), pending which more than the President requested. I yield myself such time as I may con- It also includes $1.04 billion for pro- While additional funding will be nec- curement of 11 MV–22 Osprey aircraft. sume. During consideration of this res- essary to fully address other domestic olution, all time yielded is for the pur- Mr. Speaker, all of these aircraft are security needs, this conference report important components in our national pose of debate only. is a good start. Mr. Speaker, yesterday, the Com- arsenal, and moving forward on the re- Mr. Speaker, here in Congress, there search and production sends a clear mittee on Rules met and granted a nor- has always been strong bipartisan sup- mal conference report rule for H.R. signal that the United States has no port for America’s armed forces. The intention of relinquishing our air supe- 3338, the Fiscal Year 2002 Department history of this defense appropriations of Defense Appropriations Act. riority. bill reflects that fact. The first duty of the Congress, Mr. The rule waives all points of order Last month, the House Committee on Speaker, is to provide for the national against the conference report and Appropriations reported its original defense and the men and women who against its consideration. In addition, version of H.R. 3338, and the full House protect it. This conference report does the rule provides that the conference passed it by a vote of 406 to 20. I am a great deal to improve military readi- report shall be considered as read. confident that another large bipartisan ness and to improve the quality of life Mr. Speaker, this should not be a majority will pass this conference re- for our men and women in uniform as controversial rule. It is the type of rule port today. That is because Democrats well as their families. It is a good first we grant for every conference report and Republicans are strongly com- step at providing the needed funding to we consider in the House. The gen- mitted to America’s national defense ensure that attacks like those that oc- tleman from Texas (Mr. FROST), who is and to a first-rate military that carries curred on September 11 will never hap- managing this rule for the minority, it out. As the President said yesterday pen again. understands the importance of a strong in addressing House Democrats, secu- Mr. Speaker, I wish we could have national defense, and I am sure I do not rity of the United States is not a par- done more, but Republican leaders in- need to convince him or anyone else tisan issue. sisted that many homeland security that this bill is important, now more Mr. Speaker, this is a good con- priorities wait until next year. I hope than ever before. ference report, and I support it. I would they will allow us to address the re- At a time when we are facing ter- like to commend the gentleman from maining priorities as soon as possible. rorism at home and engaged in combat Florida (Chairman YOUNG); the gen- Mr. Speaker, I urge the adoption of abroad, we need to give our govern- tleman from Wisconsin (Mr. OBEY), the this rule and of this conference report. ment the tools to defend us overseas ranking Democrat; the gentleman from Mr. Speaker, I reserve the balance of and at home. This bill does just that. It California (Chairman LEWIS); and the my time. provides our military with $317 billion gentleman from Pennsylvania (Mr. Mrs. MYRICK. Mr. Speaker, I reserve in much-needed support, including a 4.6 MURTHA), the ranking Democrat on the the balance of my time. percent pay raise; and the supple- subcommittee, for the tremendous job Mr. FROST. Mr. Speaker, I yield 5 mental portion of the bill will bolster they have done to support America’s minutes to the gentleman from Wis- our fight against terrorism by pro- troops and to protect Americans here consin (Mr. OBEY), the ranking member viding much-needed funding for border at home. of the Committee on Appropriations.

VerDate 10-DEC-2001 00:06 Dec 22, 2001 Jkt 099060 PO 00000 Frm 00002 Fmt 7634 Sfmt 0634 E:\CR\FM\K20DE7.001 pfrm02 PsN: H20PT1 December 20, 2001 CONGRESSIONAL RECORD — HOUSE H10915 (Mr. OBEY asked and was given per- After the tragic events of September $407 million, including $208 million for mission to revise and extend his re- 11, on a bipartisan basis the gentleman the FBI so that they will be able to marks, and include extraneous mate- from Florida (Mr. YOUNG) and I tried to modernize their computer system by rial.) put together a list of the actions that this coming summer, rather than hav- Mr. OBEY. Mr. Speaker, there are both sides of the aisle thought were ing to wait until the year 2004. two provisions in this bill which I necessary in order to improve the Right now the FBI has a large num- think are of note. One is a bad provi- homeland security of the United ber of computers that cannot even send sion which is here because of OMB, and States. pictures of potential terrorists to other the other is a good provision in the bill That process was rudely interrupted, FBI terminals because they do not which is here despite OMB. to say the least, by OMB, who informed This country has a serious need to have the adequate computer capacity. us in rather blunt terms that they had This bill fixes that. purchase additional tankers. This bill all the wisdom, that they did not need does that. It meets our national re- The most crucial item of all is keep- to provide any additional funding, and ing weapons of mass destruction away sponsibility in doing so. But because that we could put a ‘‘Wait ’Til Next OMB would prefer to keep a pretty set from terrorists. We wound up with $382 Year’’ sign on our homeland security of books, rather than saving the tax- million in additional funding in this needs. payers money, it will cost us signifi- bill above the amount that was origi- Mr. Speaker, I am pleased to say that cantly more to lease those tankers nally in the House bill. We have $120 than it would to buy them. That is un- despite that resistance, the conferees million of additional funding to secure fortunate, but it was the only choice brought back to this House a bill which nuclear material in the former Soviet the committee was left with because contains crucial items that will in- Union so it does not fall into terrorists’ OMB appears to be more concerned crease the security of this country at hands. home. I want to congratulate Senators with accounting niceties than it is The bill provides $383 million for in- BYRD and STEVENS and the gentleman with fiscal realities or cost realities. creased security for our Nation’s ports And I think people need to understand from Florida (Chairman YOUNG) and the gentleman from California (Chair- and for our border, especially the Cana- that that regretful result is not the dian border. For food safety, it in- fault of the committee. man LEWIS) for helping to see to it that rationality prevailed over stubborn- creases the percentage of imported I would hope that OMB in the future food subject to inspection from the would recognize the need to allow re- ness. As a result, we have $664 million present 1 percent to 10 percent, as we ality to occasionally interfere with in this bill that was not contained in have been asking all along. their philosophical biases. the House bill to protect the country Second, as was indicated by the gen- against bioterrorist attacks; we have It contains a number of other items tleman from Texas (Mr. FROST), we do $50 million more in this bill to provide which I will insert in the record. have $2.8 billion in this bill above the for cockpit security; we have law en- Mr. Speaker, I insert the table in the House bill for homeland security items. forcement additions to the bill of over RECORD at this point. CONFERENCE ADDITIONS TO THE HOUSE BILL FOR DOMESTIC SECURITY [in millions of dollars]

Conference House Conference over House

Protecting Against Bioterrorism Upgrading State & Local Health Departments & Hospitals ...... 593 1,000 407 Expanding CDC Support of State and Local Health Departments ...... 50 100 50 Accelerating Research on Biohazards, Detection and Treatment ...... 100 93 ¥7 Bio Safety Laboratories at NIH and Fort Detrick, MD ...... 0 71 71 Vaccine and Drug stockpiles ...... 1,103 1,105 2 Other Bioterrorism Requirements ...... 110 56 ¥54 Total ...... 1,956 2,425 469 Securing the Mail Procurement of Sanitation Equipment for Postal Service ...... 0 500 500 Airport and Airline Safety Federal Assistance for Mandated Security Upgrades at Airports ...... 0 175 175 Increased Sky Marshals and Sky Marshal Training ...... 288 155 ¥133 Cockpit Door Security & Explosive Detection Equipment ...... 159 209 50 Innovations in Airport Security ...... 90 50 ¥40 Total ...... 537 589 52 Law Enforcement FBI Case Management Computer System (Trilogy) ...... 105 237 132 FBI Data Backup and Warehousing ...... 0 56 56 FBI Cybersecurity, Transportation and Other ...... 434 452 18 Other Justice Department Law Enforcement ...... 106 80 ¥26 Law Enforcement Assistance (Olympics) ...... 17 17 0 Law Enforcement Assistance (National Capital Area) ...... 25 234 209 Federal Law Enforcement Training Center ...... 14 32 18 Secret Service, IRS etc...... 236 236 0 Total ...... 937 1,344 407 Keeping Weapons of Mass Destruction Away from Terrorists Improved Security at 4 DoD Sites Storing Tons of Chemical Weapons ...... 35 35 0 Improved Security for Nuclear Weapons Activities ...... 88 131 43 Improved Security for U.S. commercial/research nuclear reactors (NRC) ...... 0 36 36 Nuclear Non Proliferation Assistance for Russia ...... 0 148 148 Security of Russian Nuclear and Biological Scientists ...... 0 0 0 Nuclear, Chemical and Biological Detection ...... 18 78 60 Improved Security at Nuclear Cleanup Sites ...... 8 8 0 Energy Intelligence ...... 4 4 0 CDC Oversight and Training for Labs Handling Dangerous Pathogens ...... 0 10 10 Improved Security at Fort Detrick, MD ...... 9 9 0 Improved Security at CDC, NIH, FDA and USDA Research Facilities ...... 58 143 85 Total ...... 220 602 382 Immigration, Port and Border Security Additional Customs Agents for Canadian Border and seaports ...... 160 246 86 Machine Readable Visa Machines at All U.S. Consulates ...... 0 0 0 Immigration Inspectors, Border Patrol & Related Equipment ...... 410 450 40 Adequate INS Detention & Admin. Facilities at U.S. Border Crossings ...... 0 100 100 Full Annual Cost of Expanding Coast Guard by 640 positions ...... 145 209 64 Federal Grants for Port Security Assessments and Enhancements ...... 0 93 93 Total ...... 715 1,098 383 Train and Bus Security Federal Grants for Enhancing Security of Rail and Bus Travel ...... 0 100 100 Food and Water Safety Expand FDA Inspections to Cover 10% of All Food Imports ...... 61 97 36

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Conference House Conference over House

Increase in FDA Emergency Operations and Investigations Staff ...... 0 0 0 Assessment and Enhancement of Security for Drinking Water ...... 115 80 ¥35 Total ...... 176 177 1 Security of Government Buildings and Facilities Security Upgrades for Supreme Court and Other Federal Courthouses ...... 32 93 61 Security Upgrades for Federal Buildings and Facilities ...... 182 248 66 Increased Security for Federal Museums, Parks and Monuments ...... 81 81 0 Security Upgrades for National Water Infrastructure ...... 169 169 0 Security Measures for White House and Congress ...... 306 306 0 Security Upgrades for U.S. Military Facilities ...... 105 104 ¥1 Total ...... 875 1,001 126 Security for Schools and Colleges Grants for Assessments and Emergency Response Planning ...... 0 0 0 Other Security Counterterrorism Assistance for State and Local First Responders ...... 400 400 0 Grants for Firefighters ...... 0 210 210

Mr. OBEY. Mr. Speaker, I simply tomary 30 minutes to the gentlewoman PROVIDING FOR CONSIDERATION want to say that I think what this bill from New York (Ms. SLAUGHTER), pend- OF H. RES. 322, APPOINTING DAY demonstrates is that when committees ing which I yield myself such time as I FOR THE CONVENING OF THE are allowed to work in a substantive may consume. During consideration of SECOND SESSION OF THE 107TH way, casting aside ideology or political this resolution, all time yielded is for CONGRESS views, the result is good for the coun- the purpose of debate only. Mr. HASTINGS of Washington. Mr. try, and it is good for this institution, Mr. Speaker, H. Res. 323 is a closed Speaker, by direction of the Com- and I congratulate all of those in- rule providing for the consideration of mittee on Rules, I call up House Reso- volved. H.J. Res. 79, which is a continuing reso- lution 322 and ask for its immediate Mrs. MYRICK. Mr. Speaker, I would lution that makes further appropria- consideration. inquire of the gentleman from Texas The Clerk read the resolution, as fol- tions for fiscal year 2002. (Mr. FROST) if he has any other speak- lows: ers. The rule provides for 1 hour of debate H. RES. 322 Mr. FROST. Mr. Speaker, we have no in the House equally divided and con- Resolved, That upon the adoption of this more speakers. trolled by the Chairman and Ranking resolution it shall be in order to consider in Mr. Speaker, I urge adoption of the Minority Member of the Committee on the House a joint resolution appointing the rule, and I yield back the balance of Appropriations. The rule waives all day for the convening of the second session my time. of the One Hundred Seventh Congress. The points of order against consideration joint resolution shall be considered as read Mrs. MYRICK. Mr. Speaker, I yield and provides for one motion to recom- for amendment. The previous question shall back the balance of my time, and I mit. be considered as ordered on the joint resolu- move the previous question on the res- Mr. Speaker, as we approach the end tion to final passage without intervening olution. motion except: (1) one hour of debate equally of this year’s session, I urge my col- The previous question was ordered. divided and controlled by the Majority Lead- leagues to join me in supporting this The resolution was agreed to. er and the Minority Leader or their des- A motion to reconsider was laid on rule so that we may proceed to consid- ignees; and (2) one motion to recommit. the table. eration on the underlying continuing The SPEAKER pro tempore. The gen- resolution. tleman from Washington (Mr. f Mr. Speaker, I reserve the balance of HASTINGS) is recognized for 1 hour. PROVIDING FOR CONSIDERATION (Mr. HASTINGS of Washington asked my time. OF H.J. RES. 79, FURTHER CON- and was given permission to revise and TINUING APPROPRIATIONS FOR Ms. SLAUGHTER. Mr. Speaker, I extend his remarks.) FISCAL YEAR 2002 yield myself such time as I may con- Mr. HASTINGS of Washington. Mr. sume. Speaker, for the purpose of debate Mr. LINDER. Mr. Speaker, by direc- only, I yield the customary 30 minutes tion of the Committee on Rules, I call Mr. Speaker, this rule makes in order to the gentleman from Texas (Mr. up House Resolution 323 and ask for its the consideration of H.J. Res. 79. H.J. FROST), pending which I yield myself Res. 79 is a continuing resolution immediate consideration. such time as I may consume. During The Clerk read the resolution as fol- which will be in effect from December consideration of this resolution, all lows: 21, 2001, to January 10, 2002. time yielded is for the purpose of de- H. RES. 323 This is a simple housekeeping mat- bate only. Resolved, That upon the adoption of this ter, Mr. Speaker, and merely ensures Mr. Speaker, House Resolution 322 is resolution it shall be in order without inter- that should the Senate be unable to a closed rule providing for consider- vention of any point of order to consider in complete its work, or if the President ation of a joint resolution appointing the House the joint resolution (H.J. Res. 79) has not signed the remaining bills sent the day for the convening of the second making further continuing appropriations session of the 107th Congress. The joint for the fiscal year 2002, and for other pur- to him, the funding will be in place for poses. The joint resolution shall be consid- those departments and agencies. resolution shall be considered as read for amendment. ered as read for amendment. The previous This is a noncontroversial matter, question shall be considered as ordered on The previous question shall be con- the joint resolution to final passage without and I urge adoption of this resolution. sidered as ordered on the joint resolu- intervening motion except: (1) one hour of Mr. Speaker, I yield back the balance tion to final passage without inter- debate on the joint resolution equally di- of my time. vening motion except: (1) 1 hour of de- vided and controlled by the chairman and bate, equally divided and controlled by ranking minority member of the Committee Mr. LINDER. Mr. Speaker, I yield the Majority Leader and the Minority on Appropriations; and (2) one motion to re- back the balance of my time, and I Leader or their designees; and (2) one commit. move the previous question. motion to recommit. The SPEAKER pro tempore. The gen- The previous question was ordered. Mr. Speaker, we had hoped to bring tleman from Georgia (Mr. LINDER) is this resolution to the floor under unan- recognized for 1 hour. The resolution was agreed to. imous consent agreement, but were un- Mr. LINDER. Mr. Speaker, for pur- A motion to reconsider was laid on able to secure such an agreement. Ac- poses of debate only, I yield the cus- the table. cordingly, in the interest of completing

VerDate 10-DEC-2001 00:06 Dec 22, 2001 Jkt 099060 PO 00000 Frm 00004 Fmt 7634 Sfmt 0634 E:\CR\FM\A20DE7.002 pfrm02 PsN: H20PT1 December 20, 2001 CONGRESSIONAL RECORD — HOUSE H10917 the work of the House as expeditiously There was no objection. regarding this bill, but we have heard as possible, I encourage my colleagues f this discussion before. So I am going to to support both this rule and the reso- pass on those formal remarks, and I lution that it makes in order. CONFERENCE REPORT ON H.R. 3338, hope that my colleagues will read DEPARTMENT OF DEFENSE AP- Mr. Speaker, I reserve the balance of about them very carefully in the my time. PROPRIATIONS ACT, 2002 RECORD. But in the meantime, there Mr. FROST. Mr. Speaker, I yield my- Mr. LEWIS of California. Mr. Speak- are a couple of items of business that I self such time as I may consume. er, pursuant to House Resolution 324, I must attend to. Mr. Speaker, this rule makes in order call up the conference report accom- a joint resolution which sets the date panying the bill (H.R. 3338) making ap- First, due to a clerical error, lan- for convening of the second session of propriations for the Department of De- guage was mistakenly omitted from the 107th Congress as January 23, 2002. fense for the fiscal year ending Sep- the Statement of Managers that re- This is a totally noncontroversial rule tember 30, 2002, and for other purposes, lates to the FMTV truck program, a and joint resolution, and I urge adop- and ask for its immediate consider- very important program to some of the tion of both. ation. Members of the House. Mr. Speaker, I yield back the balance The Clerk read the title of the bill. of my time. That language, agreed to by the conferees The SPEAKER pro tempore. Pursu- Mr. HASTINGS of Washington. Mr. but inadvertently not included in the statement ant to House Resolution 324, the con- Speaker, I yield back the balance of of managers, is as follows: ‘‘The conferees un- ference report is considered as having my time, and I move the previous ques- derstand that the Army did not request legisla- tion on the resolution. been read. (For conference report and state- tive authority to extend the current multi-year The previous question was ordered. contract. The conferees direct the Army to act The resolution was agreed to. ment, see proceedings of the House of in the best interest of the Army with respect to A motion to reconsider was laid on Wednesday, December 19, 2001.) the FMTV.’’ the table. The SPEAKER pro tempore. The gen- tleman from California (Mr. LEWIS) and f Secondly, I would ask that on behalf of my- the gentleman from Pennsylvania (Mr. self and Chairman YOUNG, that I be allowed to GENERAL LEAVE MURTHA) each will control 30 minutes. insert in the RECORD at the end of my opening Mr. LEWIS of California. Mr. Speak- The Chair recognizes the gentleman remarks a series of tables summarizing the er, I ask unanimous consent that all from California (Mr. LEWIS). conference agreements, on both the Defense Members may have 5 legislative days Mr. LEWIS of California. Mr. Speak- and Supplemental appropriations bills. within which to revise and extend their er, I yield myself such time as I may remarks on the conference report ac- consume. Finally, let me mention that our companying H.R. 3338, and that I may Mr. Speaker, I would say to my col- former colleague from the Committee include tabular and extraneous mate- leagues and the gentleman from Penn- on Appropriations, Larry Coughlin of rial. sylvania (Mr. MURTHA), my friend, that Pennsylvania, who was a proud Marine The SPEAKER pro tempore. Is there the House has had a long night this by the way, Larry Coughlin was laid to objection to the request of the gen- past night. We have very, very exten- rest at Arlington Cemetery this morn- tleman from California? sive discussions that should take place ing.

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VerDate 10-DEC-2001 02:16 Dec 22, 2001 Jkt 099060 PO 00000 Frm 00015 Fmt 7634 Sfmt 0634 E:\CR\FM\K20DE7.012 pfrm02 PsN: H20PT1 Insert offset folio 20AA/12 here EH20DE01.010 H10928 CONGRESSIONAL RECORD — HOUSE December 20, 2001 Mr. Speaker, I reserve the balance of rent one. The only question then is how do we passenger aircraft, a freighter, a pas- my time. pay to replace these tankers? Again, for the senger/freighter ‘‘combination’’ air- Mr. MURTHA. Mr. Speaker, I yield Air Force the choice is relatively simple. It craft, or as an aerial refueling tanker; myself such time as I may consume. needs 100 aircraft delivered as quickly as pos- and is available to either government Mr. Speaker, I have no requests for sible. The Air Force calculates that phasing or private customers, meets the defini- time. We did the best we could with the out the KC–135 Es on an aggressive schedule tion of a general purpose, commer- little bit of money we had. will save at least $5.9 billion. But the Air cially configured aircraft? Mr. Speaker, I yield back the balance Force’s procurement budget was held flat this Mr. LEWIS of California. Absolutely. of my time. year by the new administration, and for now Mr. DICKS. The gentleman would Mr. LEWIS of California. Mr. Speak- there doesn’t appear to be any help for pro- agree with that assessment? er, I yield such time as he may con- curement in sight. The Air Force bears the re- Mr. LEWIS of California. Of course. sume to the gentleman from Wash- sponsibility of paying not only for the nation’s Of course. ington (Mr. DICKS) for a very brief col- tanker aircraft, but also for all of the nation’s Mr. DICKS. I thank the chairman. loquy. airlift, most of our space assets, and our Air Mr. LEWIS of California. Mr. Speak- (Mr. DICKS asked and was given per- superiority capability. So the right answer is to er, I yield such time as he may con- mission to revise and extend his re- lease tanker aircraft, which allows the Air sume to the chairman of the full com- marks.) Force to spread the cost over up to 10 years, mittee, the gentleman from Florida Mr. DICKS. Mr. Speaker, I would like and buy down the value of these aircraft to the (Mr. YOUNG). to enter into a colloquy with the dis- point where at the end of the lease, the Air (Mr. YOUNG of Florida asked and tinguished gentleman from California Force can easily buy or release these aircraft was given permission to revise and ex- (Mr. LEWIS). for their residual value. This is the same prin- tend his remarks.) Mr. Speaker, I rise in support of this De- ciple on which a car lease operates, an ar- Mr. YOUNG of Florida. Mr. Speaker, fense Appropriations bill. Chairman LEWIS and rangement understood and exercised by mil- this is a very good bill, and I think we Ranking Member MURTHA have done excellent lions of Americans. And the Office of Manage- will pass it expeditiously here this work in balancing very difficult and demanding ment and Budget (OMB) has determined that morning, but I want to remind the priorities. Most of all, I am very pleased that ‘‘the lease price quoted is a very good price.’’ Members that it does include the $20 the conferees agreed to accept a Senate pro- How can the taxpayer be sure that Boeing will billion emergency supplemental, which vision which allows the Air Force to lease new not turn around at the end of the lease and is divided into three basic sections; aircraft to replace the oldest of our KC–135 sell these aircraft to somebody else? Boeing which is national defense, or military, tankers. The issue of replacing the Air Force’s can sell or lease these aircraft only with US homeland defense, and the recovery ef- tanker refueling aircraft is, in fact, very simple government approval under export control fort for after the terrible September 11 despite the cloud of confusion being created laws. attack. by its opponents. In their frenzy to condemn Mr. DICKS. Mr. Speaker, I ask unani- I want to thank the gentleman from what they see as a special deal, they have to- mous consent that the next six lines of Pennsylvania (Mr. MURTHA) for being a tally lost sight of the facts. The truth is this the colloquy be inserted in the record. good partner on the minority side, and provision is a good deal—a good deal for our Mr. LEWIS of California. Absolutely. the gentleman from Wisconsin (Mr. armed forces and a good deal for taxpayers. The SPEAKER pro tempore. The OBEY), who has been a tremendous First, it is important to understand that every Chair advises the gentleman that col- partner as we went through this proc- credible defense and aviation observer agrees loquies may not be inserted in the ess. And, of course, the gentleman from that it is time to replace the aging KC–135–E record. California (Mr. LEWIS) is an out- tanker aircraft fleet with new tankers based on Mr. LEWIS of California. Mr. Speak- standing chairman of the Sub- the 767 aircraft. Both of the large tanker re- er, would the gentleman read this very committee on Defense of the Com- fueling aircraft now in use were built by the brief colloquy to me, and I will try to mittee on Appropriations. Boeing Company—current aircraft are based respond. I am happy to report, Mr. Speaker, on the 707 and DC–10 airliners—and Air Mr. DICKS. Mr. Speaker, I under- that this is the 15th, let me repeat, the Force analyses have shown that the 767 due stand that this bill grants approval for 15th appropriation bill that we have to its size, range, and carrying capacity is the Air Force to enter into a lease for done this year. We have not lumped uniquely suited to this role. The proof of this new tanker aircraft to be delivered as any of them together. Each bill has had is already evident in the commercial market- general purpose aircraft in commercial its own identity. This is something we place. The Italian Government has already configuration. Is that correct? have been striving to do for years, and signed a deal for 767 tankers for its Air Force, Mr. LEWIS of California. Mr. Speak- this year we finally accomplished it. Japan recently did the same, and several er, reclaiming my time, the gentleman Mr. Speaker, today the House is con- other European governments are likely to be is correct. sidering a very important piece of leg- close behind. The 136 KC–135 E model air- Mr. DICKS. Mr. Speaker, it is also islation, our last appropriations bill— craft the Air Force is seeking to replace aver- my understanding that Italy and Japan H.R. 3338, the Defense Appropriations age 43 years of age. They exhibit severe cor- have selected the 767 tanker for their bill for fiscal year 2002. Included in this rosion and structural damage due to age and air forces. Italy intends to buy at least bill is not only critical funding for the spend on average well over a year in depot in four of the tankers, and Japan intends Defense Department and the Intel- an attempt to patch up this damage. The Air to procure at least one. Further, I be- ligence Community, but also an alloca- Force has two choices, either spend billions to lieve that the same tanker configura- tion of the $20 billion in emergency attempt to repair and partially modernize these tion is being offered commercially to supplemental appropriations enacted aircraft, or make the transition to a new air- other countries to meet their in-flight as part of the Emergency Supplemental frame with much greater capability and lower refueling requirements. Is that the gen- Appropriations Act for Recovery from cost of operation. The decision is not hard. tleman’s understanding? and Response to Terrorist Attacks on The Air Force must replace its KC–135 Es the United States. and it must begin its program now. b 1030 I commend Chairman LEWIS, working The war in Afghanistan has shown just how Mr. LEWIS of California. Yes, it is. closely with his partner, the ranking vital our tanker capability is. Navy aircraft fly- Mr. DICKS. Then the gentleman Member of the subcommittee, JACK ing from aircraft carriers are being refueled at would say that a commercial market MURTHA—as well as all of the members least 2 and sometimes 3 or 4 times on each exists for general purpose, commer- of the Defense Appropriations Sub- mission. Bombers from Diego Garcia, and cially configured aerial refueling tank- committee, on the cooperation that even those coming all the way from the United er aircraft? has produced a truly bipartisan De- States, are being refueled, some up to as Mr. LEWIS of California. Yes, very fense portion of this bill that shares much as 6 times on one mission. Simply put, well said. broad-based support. This was not only we could not fight a war in Afghanistan without Mr. DICKS. Would the gentleman because of the way this bill was put to- these tankers, and what we’ve discovered is agree a general purpose aircraft that gether, but because of what it does. It that our current fleet is too old to do the job will meet the general requirements of is a bill which provides strong support for long in high intensity situations like the cur- many customers; that can operate as a for our troops—both in the immediate

VerDate 10-DEC-2001 02:16 Dec 22, 2001 Jkt 099060 PO 00000 Frm 00016 Fmt 7634 Sfmt 0634 E:\CR\FM\K20DE7.013 pfrm02 PsN: H20PT1 December 20, 2001 CONGRESSIONAL RECORD — HOUSE H10929 circumstances they find themselves, as than the request; $209 million for the and most important step, in fulfilling this com- well as the longer term security chal- Coast Guard, $6 million above the mitment is contained in the resolution before lenges confronting our Nation. President’s request; $2.5 billion for us now, H.R. 3338—the Department of De- You may know that the Defense Sub- Public Health and Bioterrorism activi- fense Appropriations Act conference report committee was actually beginning its ties, $1 billion above the request; Avia- and its supplemental appropriations for bio-ter- subcommittee mark-up of this bill on tion security initiatives through the rorism. the very morning of September 11th— Federal Aviation Administration re- As you know, the safety and security of the when our country suffered the horrific ceive $200 million which includes $100 Division of Vector-Borne Infectious Diseases attacks on New York and Washington. million for cockpit door modifications in Fort Collins has been of the utmost impor- As we all know, those attacks have and $65 million for the hiring of addi- tance to me, to Colorado and to the nation. It changed so many, many things—and I tional Sky marshals. An additional is a high complement to the outstanding pro- can report that this Defense Appropria- $108.5 million is provided to the FAA fessional staff and administrators of the Fort tions bill was re-worked by the com- for the purchase and installation of ex- Collins CDC facility to know that they will fi- mittee following the attacks as well as plosive detection systems; $93 million nally be getting a new facility commensurate the onset of our military operations for grants to U.S. seaports for security with the world-class researchers who daily ac- overseas, to reflect the new demands of assessments and enhancements; $745 complish there important mission in the spirit the war on terrorism as well as the million for the Federal Bureau of In- of devoted public service. other challenges we confront around vestigation for a variety of The DVBID employs a number of epi- the world. The bill addresses new counterterrorism efforts, $206 million demiologists, entomologists, molecular biolo- threats of this new century—ranging above the request; $256 million for Leg- gists, laboratory technicians, and behavioral from areas such as Ballistic Missile De- islative branch security and the U.S. scientists along with the other members of fense, to force protection measures for Capitol Police are authorized to hire an their prestigious staff. The DVBID performs our troops in the field, and new equip- additional 195 FTEs; $226 million for critical functions for the country including con- ment and technologies such as aerial Nuclear Nonproliferation, including ducting epidemiological studies to monitor dis- refueling aircraft and unmanned aerial $120 million to secure nuclear mate- ease spread, identification of risk factors asso- vehicles. It also fully funds the Presi- rials at sites in Russia and the Newly ciated with transmission and measuring public dent’s initiatives in the area of mili- Independent States. health impact, studying pathogens and devel- tary pay and quality of life programs— NATIONAL DEFENSE oping new and more effective integrated, com- such as the largest military pay raise The bill provides $3.5 billion for the munity-based prevention and control strate- in 15 years, and more than a 50 percent Department of Defense for increased gies, including vaccine development programs. increase in funding for the medical pro- operational costs, Pentagon recon- The facility deals with such deadly patho- grams supporting our troops and their struction and classified activities. This gens as Lyme disease, Dengue, Hemorrhagic families. And it includes a new title to brings the total for defense spending in Fever, Arboviral Encephalitides, Plague and deal with counter-terrorism—ranging the counter-terror supplemental to Aedes albopictus that can be transmitted from more funding for intelligence, to $17.2 billion. Also provides authority through hosts such as insects, mammals, and providing additional resources in the for agencies to reimburse the National rodents. Clearly, Mr. Speaker, the work done area of so-called ‘‘cyber war’’ (com- Guard. by the DVBID entails life-saving research af- puter network protection) and im- I am asking that we move this impor- fecting not only Colorado and the United proved equipment and research to tant legislation forward so we can get States, but also the entire world. The new fa- counter the threats of chemical and bi- it to the President for his signature. cility initiated by this bill will lend another help- ological weapons. Critical funding for our military during ing hand as the DVBID continues to fight EMERGENCY SUPPLEMENTAL a time of war and for homeland secu- these diseases. With regard to Emergency supple- rity and recovery efforts is at stake. Mr. Speaker, the working conditions at the mental portion of the bill—Division Mr. RYUN of Kansas. Mr. Speaker, I rise existing facility are not conducive to allowing B—I believe we have struck an appro- today in support of our national security. Dur- the doctors and researchers of the DVBID to priate balance between funding to ad- ing most of the last decade, the United States do their jobs as well as they otherwise would dress our homeland security, recovery military has been consistently asked to make be able. As many in this House know, the In- efforts and humanitarian assistance, do with inadequate budgets. By adding more spector General will soon be issuing a report and defense requirements. We expect than $19 billion over the funding made avail- citing approximately $100 million as the pos- that this is only the first bill that will able last year, this bill marks a turn for the sible cost for completing this new facility. Due provide funding to support our war better in defense funding. to the dramatic state of disrepair of the facility Our nation has recently suffered a dev- against terrorism and the needs of this and the more urgent shortcomings in security astating blow from a new and faceless enemy. country to respond and recover from as documented in the report, expediting the Terror was brought to our door on September the attacks of September 11th. construction becomes even more critical. 11th—masterminded by an enemy as devious The conference report before you When the laboratory was first constructed in as he is evasive. today includes $20 billion to address the 1960s, it was only designed to accommo- the immediate requirements. As we witness the day-by-day actions of our military response to Operation Enduring Free- date 50 employees. Through the years, new RECOVERY dom, the importance of our readiness to domi- personnel have been added and now the facil- The bill provides approximately $8.2 nate the conflict is a constant reminder. If we ity contains more than 150 scientists, re- billion to help impacted areas recover expect to control the battlefield, we must be searchers, and other workers. Clearly, the from the terrorist attacks. This brings prepared to fight quickly and with decisive number of people working in this building have the total provided for recovery at $11.2 force. We must allocate enough resources to tested its capacity and created an extremely billion when $3 billion in previously re- support our troops at the highest level of read- cramped working environment. The security leased funds are added. Included is: $2 iness. needs of the facility are well documented in billion for the Community Develop- By appropriating $317.5 billion, H.R. 3338 the IG’s report and are self-explanatory. Be- ment Block Grant for economic recov- will give our fighting forces the funding levels cause of the sensitivity of the report’s rec- ery assistance in New York City; $4.357 needed to succeed in protecting our national ommendations, I will not restate them herein billion for FEMA disaster relief $300 security interests. but will insist the report’s findings receive ex- million in additional transportation I urge my colleagues to vote for this con- pedient attention. assistance and security enhancements, ference report and give our expectional mili- In addition to the confining workspace, the including funds for Amtrak, subways tary personnel the support and equipment they facility’s airflow system has been a chronic and ferries; and $140 million in reim- need to achieve current goals and those of the problem. In most government offices, such a bursement to hospitals impacted by future. ventilation problem would only be a minor in- the terrorist attacks. Mr. SCHAFFER. Mr. Speaker, I commend convenience (my office in the U.S. House of HOMELAND SECURITY the leaders of the House, our colleagues in Representatives suffers from a similar prob- The bill provides approximately $8.3 the Senate and the president and his adminis- lem). However, proper airflow and ventilation billion to improve our homeland de- tration for following through today on a com- become much larger issues when placed with- fense and to assist communities in mitment made to Colorado to construct a new in the context of laboratory conducting re- their emergency preparedness, includ- facility in Fort Collins, Colorado to replace the search on some of the world’s most volatile vi- ing: $399.7 million for the Customs aging Center for Disease Control building ruses. Service for increased border and sea- there which houses the Division of Vector- Mr. Speaker, while I worked hard to make port inspections, $285.5 million more Borne Infectious Diseases (DVBID). The first, sure the new building would be constructed,

VerDate 10-DEC-2001 02:16 Dec 22, 2001 Jkt 099060 PO 00000 Frm 00017 Fmt 7634 Sfmt 9920 E:\CR\FM\A20DE7.004 pfrm02 PsN: H20PT1 H10930 CONGRESSIONAL RECORD — HOUSE December 20, 2001 this was certainly not a one-man effort. The priations Act was signed into law, the Appro- fit to eliminate this statutory requirement. And, Senator from Colorado Mr. ALLARD, and gentle priators have seen a need to make ‘‘technical since it prohibits use of appropriations and lady from Colorado Ms. DEGETTE were instru- corrections’’ to the Act and continue their prac- revenues generated by Amtrak, I would argue mental in helping me elevate the needs of the tice of Revenue Aligned Budget Authority di- that this is legislating on an appropriations bill Fort Collins lab to a state of national concern. version which negatively impacts state formula in violation of the House Rules. In fact, Ms. DEGETTE traveled to Fort Collins funds. The Transportation Appropriations Act Chapter 11 of this conference report is re- and toured the facility with me. Together we diverted roughly $1 billion of RABA (which plete with legislative provisions affecting pro- observed first hand the clear and convincing under TEA 21 is to be distributed proportion- grams under the jurisdiction of the Transpor- conditions of the facility, which fully warrant re- ately to states and among allocated programs) tation and Infrastructure Committee. This prac- placement of the lab. Fort Collins Mayor Ray into a few programs to increase their ear- tice of usurping the jurisdiction of authorizing Martinez also joined me on a separate tour of marking opportunities. One of the programs committees must stop. And it is getting worse the facility. His observations and subsequent which had its share of RABA funds zeroed out with each passing year. Thankfully, we have leadership likewise proved crucial in conveying was the Woodrow Wilson Bridge, which under completed all action on appropriations bills for to this Congress the urgency of this project. TEA 21 should have received $29.9 million in FY 2002, but next year we must not continue The gentlemen from Texas, Mr. DELAY took RABA funds this year. Now, I am no fan of the to proceed down this path. I urge all Members, personal interest in the facility as well and vast amounts of federal highway funds going particularly those on authorizing committees, played the pivotal role in inserting the nec- toward this project, but that is the project’s fair to stand together against this continuing as- essary language to effectuate the facility re- share under TEA 21. H.R. 3338 restores sault on the jurisdiction of the authorizing com- placement into the legislation under our imme- $29.9 million to the Wilson Bridge. But the mittees. Mr. BLUMENAUER. Mr. Speaker, the De- diate consideration. Finally, Mr. Speaker, I Bridge’s good fortune is more bad news for fense Appropriations bill for 2002 (H.R. 3338) thank President George W. Bush whose staff the States. In order to make room for the addi- includes important language to solve a critical helped set this victory in motion. By pledging tional funding for the Bridge, all the States will problem with funding deficiencies in a tech- its word and its honor early on, the White receive another cut from their TEA 21 formula nical assistance program under the Multifamily House has assured me and Colorado that the funds to pay for the $29.5 million. This is on Assisted Housing and Assistance Restruc- new facility will be completed in a speedy and top of the $423 million cut in formula funds as turing Act (MAHRA). The Office of Multifamily timely fashion, and through his representa- a result of the first raid on the States included Housing and Assistance Restructuring tives, the president has given me his commit- in the DOT Appropriations Act. (OHMAR) was charged with the administration ment to place the goal of completion of the Inexplicably, the Appropriators cut RABA of this program, which offers grants to non- Fort Collins facility among his administration’s funds for the National Scenic Byway Program, profit groups for outreach and rehabilitation of highest priorities. a program that seeks to preserve some of the housing. OMHAR mistakenly exceeded an an- Once again the Colorado delegation to this great driving roads across our nation and that nual $10 million restriction in two of the last Congress has proved that working together should receive $3.4 million in RABA funds. four fiscal years. HUD has subsequently fro- across party lines for the greater good of Col- The Appropriators found time to do a little zen all funds for the program. Over 100 non- orado and all our constituents yields produc- more earmarking, though in a less objection- profit and tenant organizations with written, tive results in Congress for America. I am able fashion. Two more projects for Mis- signed contracts have incurred expenses on deeply grateful for the support and assistance sissippi and Washington are included, but the assumption that the contracts would be of my Colorado colleagues. Absent their de- funded from general funds and added to the honored. Even though these organizations voted attention to this important matter, it is $144 million of projects funded in sec. 330 of have completed work according to the terms most likely the new DVBID facility would re- the original DOT Act and then earmarked. of their contracts, they are now forced to lay While unauthorized, we should at least be main an elusive dream. off staff because invoices for reimbursement Mr. Speaker as I have stated, I am proud to thankful that, unlike the Senate bill, the con- have not been paid. The solution included in announce the new DVBID facility to be housed ference report does not fund these two the defense appropriations bill does not re- at Colorado State University. I congratulate projects from the Trust Fund programs that quire the appropriation of new money. Rather, the employees of the facility, especially the di- were the beneficiaries of the raid on the RABA it includes a technical correction to appropriate rector, Dr. Duane Gubler. I applaud the efforts funds from the states and other programs. money that already exists within the HUD of the DVBID and look forward to being at the On December 11, less than 10 days ago, budget. groundbreaking ceremony. the House passed by voice vote H.R. 3441. While I strongly support this technical cor- Mr. PETRI. Mr. Speaker, while we all want This bill, requested by the Administration, cre- rection as a necessary and critical step to en- to support our military, our fight against ter- ates the positions of Under Secretary of sure that 100’s of non-profit organizations rorism, and efforts to rebuild areas affected by Transportation for Policy and Assistant Sec- around the country are properly compensated, the terrorist attacks of September 11, I find I retary for Public Affairs. When the House con- there remains one area of concern. The lan- must once again express my strong objection sidered this bill on the Floor, not one member guage embodies requirements for additional to the continued disregard for existing law and of the Appropriations Committee expressed audits and reviews of the office responsible as the House Rules shown by the Appropriations any concerns. In fact, not one word of opposi- well as other elements of the program. While Committee. While the conference report has tion was uttered on the Floor. And again, it a full and ongoing investigation of the reasons only been available for a few hours, there was passed by voice vote. Yet, section 1107 for OMHAR’s financial errors is absolutely clearly are several objectionable provisions. of this conference report prohibits the use of necessary, these steps can and should be While too numerous to specify all of them, I any funds for these two positions. Why? No taken without further delaying the reimburse- will highlight just a few. explanation is given. ment of non-profit organizations associated When the House considered H.R. 3338 on Section 1102 provides that no appropriated with the program. Any additional requirements November 28, several points of order were funds or revenues generated by Amtrak may for financial reviews and audits should balance made striking provisions that funded certain be used to implement section 204(c)(2) of Am- the need for continued accountability with the aviation and highway spending from the Avia- trak’s current authorization law until Congress need to meet our current and future obliga- tion and Highway Trust Funds. The points of has enacted an Amtrak authorization law. Sec- tions to these important non-profit organiza- order were upheld because language directing tion 204(c)(2) requires Amtrak to prepare a liq- tions. that the funding be from the trust funds was uidation plan within 90 days of the Amtrak Re- I urge my colleagues to work with their local determined to be a violation of the House form Council determining that Amtrak will not non-profit housing organizations to ensure that Rules because this funding from the Trust reach operational self-sufficiency by Decem- any additional requirements posed by this leg- Funds was not authorized. The $40 billion ber, 2002. It also requires the Council to sub- islation do not serve to stymie their efforts to emergency response supplemental passed mit a plan to restructure Amtrak within 90 days provide quality housing in our nation’s commu- after September 11 did not provide for funding of that finding. The Council made such a find- nities. from the Trust Funds. This spending should ing last month. Mr. FRELINGHUYSEN. Mr. Speaker, I rise come from the general fund. Perhaps it is no This prohibition on developing such plans today in support of H.R. 3338, the Fiscal Year surprise to find that this conference report in- will impede Congress’ consideration of the fu- 2002 Defense Appropriations Conference Re- serts the Trust Fund provisions again, in viola- ture of Amtrak. The liquidation and restruc- port and ask unanimous consent to revise and tion of the House Rules. turing plans would help educate Members and extend by remarks. It is shocking that just a few days after the provide vital information during reauthorization As a member of the Defense Subcommittee, FY2002 Department of Transportation Appro- of Amtrak. It is sad that the Appropriators saw let me first thank our Chairman JERRY LEWIS

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and our ranking member, Congressman MUR- ing $30 million to replace our state police ‘‘To say that he was disappointed with the THA, as well as our full Committee Chairman communications system which sat atop the final numbers this year, that would be an ac- BILL YOUNG. World Trade Center and was destroyed in the curate statement,’’ Broadhurst said. Our subcommittee was first scheduled to ‘‘But in no way is the congressman trying attack. And as a result of the destruction of to point any fingers,’’ he said, adding that begin work on this bill on the morning of Sep- the PATH station, thousands of New Jersey Frelinghuysen is telling the Senate ‘‘we have tember 11 at the very hour that terrorists at- commuters are struggling every day to get to to do better.’’ tacked our county, killing thousands of our fel- work. Our commuters need help and this bill Picatinny Arsenal spokesman Pete Row- low Americans and forever changing the provides relief for our commuters by providing land said he was pleased with the congress- course of our nation’s history. $100 million for increased mass transit and man’s efforts. America is now at war and our young men $100 million for increased ferry service. We ‘‘I think that it goes without saying (Frelinghuysen) has displayed a real strong and women in the military have been called on also provide $100 million critical safety im- to defend our citizens and our nation. The support for military installations not only in provements for the tunnels that take millions his district but in the state of New Jersey course of our nation’s history will not be writ- of people to and from Manhattan and New and military services at large,’’ he said. ten by the terrorists but by the bravery and Jersey every day. ‘‘And this is another example of his personal success of our troops now serving on the Finally, let us also be clear that the commit- support, as well as that of the other mem- frontlines of this war against terrorism. And ments we make in this bill to our military do bers of the New Jersey congressional delega- our history will be written, in part, by the ac- not meet every need. As more will be required tion.’’ tions we take here today. of our troops, more will be required of this Picatinny Arsenal covers about 6,500 acres Today, there is no more important task be- Congress. with 1,000 buildings. It employs approxi- fore this Congress than to provide our military Mr. Speaker, as those of us who have mately 3,500 people designing new weapons and munitions for the military. with the tools and resources they need to de- served in the military know only too well, wars fend our citizens and fight for our freedom. are fought by the young. We know, too, that [From the Star Ledger, Dec. 20, 2001] Our military needs to know that this Congress freedom never has, nor will it be this time, MILLIONS EXPECTED FOR AREA’S TRANSIT AND not only supports their mission in theory but in free. At no time in our nation’s history has the SECURITY substance; that we are prepared to take all the sacrifice and service of our young men and (By J. Scott Orr) necessary steps and provide all the necessary women been more important to the defense of WASHINGTON.—House and Senate nego- means for their safety and their success in our country and the security of our future. tiators have agreed on a Pentagon spending battle. With this Conference Report, we go a Mr. Speaker, I urge my colleagues to pass bill that includes hundreds of million of dol- long way in doing just that. the fiscal year 2002 Defense Appropriations lars for law enforcement and transportation With this bill, we help meet the immediate Conference Report and to do so unanimously. aid to New Jersey in the aftermath of the needs of our troops and their families, to keep [From Daily Record, Dec. 20, 2001] Sept. 11 terrorist attacks. Included is close to $300 million to improve FRELINGHUYSEN DISAPPOINTED WITH FUNDING our military at the ready, and to invest in all commuter access to New York City from FOR N.J. MILITARY the many, diverse capabilities we need to pro- New Jersey and more than $50 million for the tect our citizens from all potential threats. (By Matt Manochio) State Police and the Newark and Jersey City Overall, we provide $317.5 billion for the U.S. Rep. Rodney Frelinghuysen said police departments to help tighten security. Department of Defense and with those dollars, Wednesday he’s disappointed with the fund- ‘‘These important security and transpor- we do the following: ing provided by the U.S. Senate for New Jer- tation initiatives are critical to the safety First and foremost, we give our troops better sey’s military installations, but the state’s and well-being of New Jersey residents,’’ said pay. two Democratic senators say they are stead- Rep. Rodney Frelinghuysen (R–11th Dist.), fast in their support of those bases. We add much needed dollars for troop read- the state’s senior member of the House Ap- Frelinghuysen, R-Harding, released a propriations Committee. iness, training, supplies, and mobility that statement with details of the Department of ‘‘Through no choice of its own, New Jersey allow our Commander in Chief to send our Defense budget that soon will land on Presi- has become one of the front lines in the war Armed Forces into battle anywhere and at a dent’ Bush’s desk. on terrorism, and it is absolutely crucial moment’s notice. At Picatinny Arsenal in Rockaway Town- that the state receives the resources it needs We add support for our National Guard and ship, $447 million is slated for research and to provide the strongest security possible,’’ reserves, so many of whom have now been development for the arsenal’s Crusader self- added Sen. Robert Torricelli (D–N.J.), who propelled howitzer program. All totaled, called to duty. fought for the New Jersey money in the Sen- more than $600 million is earmarked for ate. We provide for modernizing major weapon Picatinny projects in the 2002 budget. systems that allow us to better combat our en- While they joined in applauding the trans- Frelinghuysen’s statement compared portation and security funding, Freling- emies in the air, on the ground and at sea. House and Senate funding requests, along huysen and Torricelli were divided over an- We continue to support critical long-term in- with the amounts that actually made it into other part of the bill that sets funding levels the budget. vestments in research and development so we for New Jersey’s military installations, in- The House asked for $98 million for the have the most lethal and effective weapons cluding Picatinny Arsenal, Fort Monmouth, Crusader’s ‘‘Common Engine’’ program, com- now and in the future. pared to $43 million requested by the Senate. McGuire Air Force Base and Fort Dix. The We add significant resources to strengthen The final amount budgeted was $98 million. bases would receive more than $650 million classified intelligence programs, and accel- The release listed various projects at under the bill. erate and enhance U.S. military intelligence, Picatinny and other bases, showing the Sen- Without mentioning Torricelli or Sen. Jon surveillance and reconnaissance capabilities. ate budgeted no money for them while the Corzine (D–N.J.), Frelinghuysen charged that And we also add critical funds for our home- House set aside between $1.5 million and $40 the Senate failed to support more than $25 million. million in additional funding for programs at land defense to better protect our citizens from the bases, including more than $20 million at all potential threats. The state’s two Democratic senators strongly disagreed with Frelinghuysen’s sug- Picatinny. And with the release of $20 billion in emer- gestion that the Senate has failed to ade- Frelinghuysen had complained privately gency appropriations, we are also helping to quately support the military, according to that the money for the transportation and meet the very real needs of those commu- their spokespeople. security projects, championed in the Senate nities and states most directly impacted by the ‘‘Basically, we’re surprised about it,’’ said by Torricelli and Corzine, could jeopardize attacks of September 11 and to strengthen our David Wald, a spokesman for Sen. Jon funding levels for other military programs in Corzine. ‘‘We know that the bulk of the ($300 the state. homeland defense. Speaking through a spokesperson, As my colleagues know, New Jersey was million) for Homeland Defense that impacts on New Jersey started on the Senate side.’’ Torricelli said he was ‘‘disappointed’’ that on the frontlines of the attacks of September Likewise, Sen. Robert G. Torricelli’s Frelinghuysen would blame the Senate for 11 our people suffered greatly as so many spokeswoman, Debra DeShong, took excep- ‘‘shortcomings that resulted from the work lives were lost and our state and local law en- tion to the Frelinghuysen document. of the committee on which he serves.’’ forcement where there to answer the call to New Jersey military bases have no bigger The transportation and security funding is help our neighbors in New York. And it’s im- advocate than Sen. Torricelli,’’ she said, add- part of $20 billion in anti-terror and recon- portant that we all work to help rebuild lower ing that the senator was ‘‘disappointed that struction funding included in the appropria- tions bill for the Department of Defense for Manhattan and most important, work together Congressman Frelinghuysen has chosen to politicize our state’s defense projects and our the fiscal year that began Oct. 1. to help our fellow citizens who suffered to re- efforts to protect our priorities.’’ The agreement still requires final approval build their lives. Frelinghuysen’s spokesman, Mark by the House and the Senate, but its backers I want to thank the House for agreeing to Broadhurst, said that the congressman said there is little doubt it will be approved requests to help New Jersey directly by includ- wasn’t trying to politicize anything. quickly, possibly today.

VerDate 10-DEC-2001 02:16 Dec 22, 2001 Jkt 099060 PO 00000 Frm 00019 Fmt 7634 Sfmt 0634 E:\CR\FM\A20DE7.032 pfrm02 PsN: H20PT1 H10932 CONGRESSIONAL RECORD — HOUSE December 20, 2001 The transportation funding includes: was privately operated. And while the mine I would also urge the National Science $100 million to expand ferry service for will be owned by South Dakota, the state will Foundation (NSF) not to make a decision on PATH commuters between New Jersey and have no financial responsibility for it; that will whether to award a grant to the underground Manhattan. $100 million in capital investment funding rest solely with the federal taxpayer. It’s lucky laboratory until the report to EPA has been to accelerate improvements under way by that South Dakota doesn’t have any bridges to prepared. This is essential even though NSF the Port Authority of New York and New sell us. will have to have an Environmental Impact Jersey to improve PATH and NJ Transit sys- In S. 1389 as originally introduced the fed- Statement prepared about the conversion of tems. eral government did not even have any real the mine into a laboratory. $100 million for Amtrak to enhance safety ability to have problems at the mine cleaned NSF should not be committing federal re- and security of its rail tunnels under the up before it was transferred. Thanks to the ef- sources to a project until it knows how much East and Hudson rivers. forts of Mr. THUNE, that situation has been im- the project will cost the federal taxpayer and $93.3 million to improve security at all proved. U.S. seaports, including the Port of New which agencies will be responsible for shoul- York and New Jersey, and along the Dela- I would urge the Environmental Protection dering that burden. ware River in New Jersey. Agency (EPA), which will hire a contractor to The federal assumption of liability will al- ‘‘The enhancement of the metropolitan review the mine, not to accept any contractor ready pose unfortunate costs for NSF. The area’s transportation infrastructure is cen- with which it is not completely satisfied. The laboratory is to pay into an Environment and tral to the region’s ability to recover eco- unfortunate fact that the contractor must be Project Trust Fund, and some if not all of that nomically from both the attacks on the selected ‘‘jointly’’ by Homestake, South Dakota money will come from NSF. World Trade Center and the economic situa- and EPA should not be allowed to pressure NSF must be an active participant in deter- tion we are currently facing,’’ Torricelli EPA into hiring a contractor that will not fully said. mining how much needs to be contributed to The transportation funding—usually not protect the federal taxpayer. And the require- the trust fund, especially since it may end up included in an appropriations package for ment that EPA consult with Homestake and being the only contributor to that fund. And the Department of Defense—was put in to the State over the nature of the contract with NSF must have a role in determining the final help New Jersey and New York recover from the independent entity’’ must not be inter- disposition of the fund. The bill is silent on the destruction of the World Trade Center, preted to give Homestake or the State any what is to become of the fund if a laboratory which sat atop a vital PATH station. veto over the content of that contract. is started and then closed. All that is clear is The loss of the World Trade Center station But EPA should consult with the National that the federal government gets saddled with forced some 67,000 daily commuters to seek Science Foundation (NSF) throughout the en- alternative routes to Manhattan. The sta- the costs of closing the mine. But which agen- vironmental review process, as NSF is the cy is responsible for that undertaking? And tion is expected to be out of service at least federal agency that will have continuing re- until mid-2003. what will happen to any leftover funds? NSF The aging Amtrak Hudson River rail tun- sponsibility if a laboratory is established at the should have an active role in deciding that. nels are slated for a $1 billion rehabilitation mine. The Homestake language bill poses enor- Importantly, the bill now allows the EPA Ad- in addition to the $100 million in the Pen- mous, unnecessary and unprecedented risks ministrator to reject the final report of he con- tagon bill, which will go for immediate im- for the federal taxpayer. It is, in a phrase, a provements to protect them against terrorist tractor if it identifies conditions that would sweetheart deal for the Canadian company attack. make the federal assumption of liability ‘‘con- that owns Homestake and for the State of For police, the bill would provide: trary to the public interest.’’ I believe this allow South Dakota. It could threaten the stability of $30 million to replace the New Jersey State the federal government to reject the transfer of Police Radio System tower, lost in the at- the National Science Foundation, a premier the mine if it would cost too much to remedy tacks on the World Trade Center. science agency whose processes have been existing environmental problems. This is vital $10.7 million for modernization of the Jer- viewed as a model of objectivity and careful since Homestake’s contribution to pre-transfer sey City Police Department’s communica- review. remediation could well turn out to be nothing, tions system. I should point out that the federal govern- $10 million for law enforcement purposes given the language in this bill. and security equipment updates in Newark. The bill says nothing about which federal ment is already paying Homestake $10 million ‘‘This funding will help ensure that our agency would be responsible for overseeing or in this fiscal year to keep the mine open be- men and women of the State Police continue financing any pre-transfer remediation. This is cause it might become a laboratory. If that to have the tools and resources necessary to a major, conspicuous, and I assume, purpose- continues through the period of NSF decision- protect our state and its citizens,’’ Freling- making the federal government could easily huysen said. ful gap in the legislation. I certainly would hope that these costs— sink as much as $50 million into a mine that Mr. BOEHLERT. Mr. Speaker, I want to which should not have been federalized in the it may never use. congratulate the appropriators on reporting our first place—are not borne by the National I will work to ensure that NSF itself is not a fine defense bill overall. However, I need to Science Foundation, a small agency with im- saddled with those unnecessary costs, which put in the record my objections to the inclu- portant tasks that do not include environ- could be spent on worthy grants to research- sions of a provision related to the Homestake mental remediation. ers. mine in South Dakota. I made the same com- But this bill raises many other concerns re- The Science Committee will be following ments when the language passed as a free- lated to the National Science Foundation. All this matter extremely closely to ensure that standing measure, S. 1389. the activities under this bill are contingent on the environmental review is rigorous and pro- I’m afraid I must oppose the Homestake lan- NSF approval of an underground laboratory at tects the public interest. We will watch closely guage, despite the strenuous efforts made to the Homestake mine. to ensure that the laboratory is being reviewed improve it by both Mr. THUNE and the House While such a laboratory certainly has sci- in the same manner as every other NSF leadership. As a Member of Congress, I’m entific merit, it may not be a high priority com- project and does not distort the agency’s proc- afraid that this language could still unneces- pared to other NSF programs and projects, esses or priorities or weigh it down with sary saddle taxpayers with costly and unprec- especially given that construction of other neu- unsustainable costs. The risks of proceeding edented environmental responsibilities. And as trino detectors is either under consideration or with this bill are clear; we will work to see that Chairman of the House Science Committee, underway. they are never realized. I’m concerned that it may distort the priorities This bill must not be used to pressure NSF Mr. Speaker, I am attaching an exchange of of the National Science Foundation for years to change or circumvent its traditional, careful letters with the National Science Foundation to come. selection procedures. Normally, a project of that will further highlight the risks inherent in This provision sets up dangerous and un- this magnitude would require several years of proceeding in this unorthodox manner. precedented situation in which the federal gov- review. NSF would have to determine its rel- HOUSE OF REPRESENTATIVES, ernment will be financially responsible for ac- ative priority among other Major Research COMMITTEE ON SCIENCE, tivities it did not undertake at a piece of prop- Equipment proposals. And NSF would have to Washington, DC. erty it does not control. That flies in the face ensure that proper management is in place. Dr. RITA COLWELL, of common sense and fiduciary responsibility. Those procedures must be followed in this Director, National Science Foundation, Arling- Under this language, the federal govern- case. Indeed, this is even more important in ton, VA. DEAR DR. COLWELL: As you know, the Sen- ment will be responsible for any environmental the case of Homestake because any mis- ate recently passed S. 1389, the ‘‘Homestake liability connected with the portions of the management could result in both environ- Conveyance Act of 2001.’’ This bill has seri- Homestake mine that are conveyed to South mental harm and substantial liability for the ous implications for the National Science Dakota—even if they originated while the mine federal government. Foundation (NSF).

VerDate 10-DEC-2001 02:16 Dec 22, 2001 Jkt 099060 PO 00000 Frm 00020 Fmt 7634 Sfmt 0634 E:\CR\FM\A20DE7.035 pfrm02 PsN: H20PT1 December 20, 2001 CONGRESSIONAL RECORD — HOUSE H10933 With that in mind, we want to be sure that for certain aspects of the project, all such re- gram forward. I look forward to working with NSF is considering the likely consequences sponsibilities remain with the recipient. this Committee next year to accelerate the should S. 1389 be enacted. Therefore, I am (3) A plan for how NSF would interact with MC2A program providing our forces domi- writing to request that you submit to the the Environmental Protection Agency (EPA) House Science Committee the following and the State of South Dakota to ensure nance over the information battlefield. items by no later than December 15: that the mine is in proper condition for the Mr. LEWIS of California. Mr. Speak- (1) A plan for how NSF would absorb the establishment of a laboratory and to deter- er, I have no further requests for time, expected costs of an underground laboratory mine amounts NSF grantees would have to and I yield back the balance of my at Homestake beginning in Fiscal Year 2003, pay into the Environment and Project Trust time. with special attention to the impact on Fund established under the bill. Mr. LEWIS of California. Mr. Speaker, sec- other projects in the Major Research Equip- NSF would interact in good faith with the tions 901 and 903 of the division B of the ment account. EPA and the State of South Dakota to en- (2) A plan for how NSF would ensure that sure that the mine is in satisfactory condi- Emergency Supplemental Act, 2002, give the the laboratory was properly managed, even if tion for the establishment of a laboratory. Sergeant at Arms of the Senate and the Chief a project were awarded in calendar 2002. Additionally, assessment of the proposal be- Administrative Officer of the House of Rep- (3) A plan for how NSF would interact with fore us will presumably require an Environ- resentatives identical authority to acquire the Environmental Protection Agency and mental Impact Statement (EIS). The find- buildings and facilities in order to respond to the State of South Dakota to ensure that the ings of that EIS would very much inform our emergencies. The phrase ‘‘notwithstanding mine is in proper condition for the establish- evaluation of the proposal. any other provision of law’’ was included in We share your concern about the manda- ment of a laboratory and to determine these sections to clarify that provisions of law amounts NSF grantees would have to pay tory contribution to the Fund required of into the Environment and Project Trust each project conducted in the lab. Our review which would otherwise prohibit these individ- Fund established under the bill. of each proposal for science in the lab would uals from acquiring buildings and facilities, The enactment of S. 1389 could complicate include a careful analysis of (1) the projected such as section 3736 of the Revised Statutes NSF’s situation for years to come both di- costs of removing from the mine or labora- (41 U.S.C. 14), would not interfere with this rectly and through the precedents the bill tory equipment or other materials related to authority. It was not the intent of the conferees may set. We want to work together with you, a proposed project, and (2) the projected cost or the Congress for this phrase to be con- starting immediately, to limit any problems of claims that could arise out of or in con- strued more broadly to waive the application this measure may cause. nection with a proposed project. Meaningful Sincerely, analysis of both factors would require close of other provisions of law which may apply to SHERWOOD BOEHLERT, cooperation with the lab’s Scientific Advi- these kind of activities, such as the Anti-Defi- Chairman. sory Board, the State of South Dakota, and ciency Act. the EPA. These costs will factor into our Indeed, subsection (d) of each of these sec- NATIONAL SCIENCE FOUNDATION, evaluation of each proposal. tions permits any portion of the costs incurred Arlington, VA December 14, 2001. I appreciate the opportunity to work with by the Sergeant at Arms or Chief Administra- Hon. SHERWOOD BOEHLERT, you in assessing the possible impact of this tive Officer in acquiring buildings and facilities legislation on the National Science Founda- Chairman, Committee on Science, House of Rep- under this authority during a fiscal year to be resentatives, Washington, DC tion. DEAR MR. CHAIRMAN: The Office of Management and Budget ad- covered by funds which are appropriated to Thank you for your letter regarding S. vises that there is no objection to the sub- the Architect of the Capitol during the fiscal 1389, the ‘‘Homestake Conveyance Act of mission of this report from the standpoint of year and transferred to the Sergeant at Arms 2001’ and its possible implications for the Na- the President’s program. or Chief Administrative Officer. It would be un- tional Science Foundation (NSF). Sincerely, necessary for Congress to permit this kind of The following responds to your requests: RITA R. COLWELL, transfer if the Sergeant at Arms and Chief Ad- (1) A plan for how NSF would absorb the Director. expected costs of an underground laboratory ministrative Officer were permitted to carry out Mr. RYUN of Kansas. Mr. Speaker, I rise the underlying acquisitions without using ap- at Homestake beginning in Fiscal Year 2003, today to commend the House Defense Appro- with special attention to the impact on propriated funds, since that would eliminate other projects in the Major Research Equip- priations Subcommittee for the extraordinary the need for these costs to be covered with ment account. job they have done in bringing this Conference other appropriated funds in the first place. NSF has not identified funds to support Report to the Floor. Never before in most of The SPEAKER pro tempore (Mr. the conversion of the Homestake mine into our lifetimes has the security of our Nation CAMP). Without objection, the previous an underground research laboratory. Unless been more paramount than it is at this mo- question is ordered on the conference the President requests and Congress appro- ment. All the Members in this body, indeed, report. priates additional monies for the lab, its es- every American, owe a great debt of gratitude tablishment would force us to reconsider the There was no objection. priorities within the Research and Related to Chairman LEWIS of California and the Rank- The SPEAKER pro tempore. The Activities appropriation or reevaluate the ing Member, Congressman MURTHA of Penn- question is on the conference report. funding profiles and timelines of existing sylvania along with their hard working staff. Pursuant to clause 10 of rule XX, the MRE projects. They have ensured that the men and women yeas and nays are ordered. (1) A plan for how NSF would ensure that in uniform receive the pay increases that they The vote was taken by electronic de- the laboratory was properly managed, even if deserve and the modern equipment that they vice, and there were—yeas 408, nays 6, a project were awarded in calendar 2002. need to defend our homeland and other free- An applicant for a grant of this magnitude not voting 20, as follows: must submit a management plan for NSF’s dom-loving people in harm’s way. [Roll No. 510] I was pleased to see in the Committee Re- review prior to any funding decision by the YEAS—408 Foundation. That plan must cover all phases port an initiative to accelerate and enhance the United States’ intelligence, surveillance Abercrombie Biggert Buyer of the project including the planning process, Ackerman Bilirakis Callahan construction or acquisition, integration and and reconnaissance capabilities through a pro- Aderholt Bishop Calvert test, commissioning, and maintenance and gram called the Multi-Sensor Command and Akin Blagojevich Camp operations. The management plan sets forth Control Aircraft or MC2A, a concept strongly Allen Blumenauer Cannon the management structure and designates Andrews Blunt Cantor advocated by the Chief of Staff of the Air Armey Boehlert Capito the key personnel who are to be responsible Force. Such an aircraft will advance the capa- for implementing the award. This proposed Baca Boehner Capps Bachus Bonilla Capuano management plan then becomes the basis for bilities of AWACS and Joint STARS air and ground surveillance radars and will serve as Baird Bonior Cardin NSF’s review of the adequacy of manage- Baldacci Bono Carson (IN) ment for the project. the airborne integrator for a large variety of Baldwin Boozman Carson (OK) The technical and managerial complexity battlefield information systems. This aircraft Ballenger Borski Castle of the proposed lab suggests that NSF would will be the cornerstone of our military’s trans- Barr Boswell Chabot utilize a Cooperative Agreement as the fund- formation to network centric warfare. Barrett Boucher Chambliss ing instrument. The particular terms of a Bartlett Boyd Clayton However, due to overall budget constraints, Barton Brady (PA) Clyburn Cooperative Agreement covering the lab the MC2A program was not funded. While this Bass Brady (TX) Coble would be established prior to NSF’s funding is a disappointment to the Air Force and to the Becerra Brown (FL) Collins of the proposal. That Cooperative Agreement Bentsen Brown (OH) Combest would specify the extent to which NSF would warfighters that would readily benefit from this Bereuter Brown (SC) Condit advise, review, approve or otherwise be in- revolutionary capability, I strongly encourage Berkley Bryant Cooksey volved with project activities. To the extent the Air Force, along with their industry part- Berman Burr Costello NSF does not reserve or share responsibility ners, to continue to find ways to bring this pro- Berry Burton Cox

VerDate 10-DEC-2001 02:43 Dec 22, 2001 Jkt 099060 PO 00000 Frm 00021 Fmt 7634 Sfmt 0634 E:\CR\FM\A20DE7.038 pfrm02 PsN: H20PT1 H10934 CONGRESSIONAL RECORD — HOUSE December 20, 2001 Coyne Hunter Nussle Taylor (NC) Turner Weiner further amended by striking the date speci- Cramer Hyde Oberstar Terry Udall (CO) Weldon (FL) fied in section 107(c) and inserting in lieu Crane Inslee Obey Thomas Udall (NM) Weldon (PA) thereof ‘‘January 10, 2002’’; and by striking Thompson (CA) Upton Weller Crenshaw Isakson Olver the date specified in section 123 and inserting Crowley Israel Ortiz Thompson (MS) Velazquez Whitfield Culberson Issa Osborne Thornberry Visclosky Wicker in lieu thereof ‘‘January 1, 2002’’. Cunningham Istook Ose Thune Vitter Wilson (NM) The SPEAKER pro tempore. Pursu- Davis (CA) Jackson-Lee Otter Thurman Walden Wilson (SC) ant to House Resolution 323, the gen- Davis (FL) (TX) Owens Tiahrt Walsh Wolf Davis (IL) Jefferson Oxley Tiberi Wamp Woolsey tleman from Florida (Mr. YOUNG) and Davis, Jo Ann Jenkins Pallone Tierney Watkins (OK) Wu the gentleman from Wisconsin (Mr. Davis, Tom John Pascrell Toomey Watson (CA) Wynn OBEY) each will control 30 minutes. Deal Johnson (CT) Pastor Towns Watt (NC) Young (FL) DeFazio Johnson (IL) Payne Traficant Watts (OK) The Chair recognizes the gentleman from Florida (Mr. YOUNG). DeGette Johnson, Sam Pelosi NAYS—6 Delahunt Jones (NC) Pence DeLauro Kanjorski Peterson (MN) Conyers Jackson (IL) Paul b 1100 DeLay Kaptur Peterson (PA) Filner Lee Petri Mr. YOUNG of Florida. Mr. Speaker, DeMint Keller Phelps Deutsch Kelly Pickering NOT VOTING—20 I yield myself such time as I may con- Diaz-Balart Kennedy (MN) Pitts Baker Hall (OH) Spratt sume. Dicks Kennedy (RI) Platts Barcia Hastings (FL) Stark Mr. Speaker, this continuing resolu- Doggett Kerns Pombo Clay Johnson, E. B. Waters tion merely extends the date of the Dooley Kildee Pomeroy Clement Jones (OH) Waxman Doolittle Kilpatrick Portman Cubin Luther Wexler previous continuing resolution until Doyle Kind (WI) Price (NC) Cummings Markey Young (AK) the 10th of January. We do this not be- Dreier King (NY) Pryce (OH) Dingell Meek (FL) cause we need the extra time in the Duncan Kingston Putnam Dunn Kirk Quinn b 1056 Congress, but the President does need some additional time to review these Edwards Kleczka Radanovich Mr. CONYERS changed his vote from Ehlers Knollenberg Rahall last bills that we have sent to him. Ehrlich Kolbe Ramstad ‘‘yea’’ to ‘‘nay.’’ I hope that we can pass this expedi- Emerson Kucinich Rangel Mr. OBERSTAR changed his vote tiously and everybody get home for a Engel LaFalce Regula from ‘‘nay’’ to ‘‘yea.’’ English LaHood Rehberg very merry Christmas or a happy Ha- Eshoo Lampson Reyes So the conference report was agreed nukkah or whatever celebration that Etheridge Langevin Reynolds to. we all enjoy. Evans Lantos Riley The result of the vote was announced Mr. OBEY. Mr. Speaker, will the gen- Everett Largent Rivers as above recorded. Farr Larsen (WA) Rodriguez tleman yield? Fattah Larson (CT) Roemer A motion to reconsider was laid on Mr. YOUNG of Florida. I yield to the Ferguson Latham Rogers (KY) the table. gentleman from Wisconsin. Flake LaTourette Rogers (MI) Stated for: Fletcher Leach Rohrabacher Mr. OBEY. Would the gentleman en- Foley Levin Ros-Lehtinen Mr. SPRATT. Mr. Speaker, I was late arriv- tertain a unanimous-consent request to Forbes Lewis (CA) Ross ing this morning, and I missed rollcall vote change the January 10, 2002 date to Ford Lewis (GA) Rothman 510, final passage of the Department of De- January 10, 2003? Fossella Lewis (KY) Roukema fense Appropriations Act for Fiscal Year 2002. Frank Linder Roybal-Allard Mr. YOUNG of Florida. That would Frelinghuysen Lipinski Royce Had I been present, I would have voted make our life a lot easier, but we prob- Frost LoBiondo Rush ‘‘yea.’’ ably could not get that kind of unani- Gallegly Lofgren Ryan (WI) Mrs. JONES of Ohio. Mr. Speaker, I inad- mous consent. Ganske Lowey Ryun (KS) vertently missed the vote on H.R. 3338 De- Gekas Lucas (KY) Sabo Mr. Speaker, I reserve the balance of Gephardt Lucas (OK) Sanchez fense Appropriations Conference Report. Had my time. Gibbons Lynch Sanders I been present I would have voted ‘‘yea.’’ Mr. OBEY. Mr. Speaker, I yield back Gilchrest Maloney (CT) Sandlin Gillmor Maloney (NY) Sawyer f the balance of my time. Gilman Manzullo Saxton Mr. YOUNG of Florida. Mr. Speaker, GENERAL LEAVE Gonzalez Mascara Schaffer I yield back the balance of my time. Goode Matheson Schakowsky Mr. YOUNG of Florida. Mr. Speaker, Goodlatte Matsui Schiff The SPEAKER pro tempore (Mr. Gordon McCarthy (MO) Schrock I ask unanimous consent that all Mem- CAMP). All time for debate has expired. Goss McCarthy (NY) Scott bers may have 5 legislative days within The joint resolution is considered as Graham McCollum Sensenbrenner which to revise and extend their re- having been read for amendment. Granger McCrery Serrano Graves McDermott Sessions marks on H.J. Res. 79, and that I may Pursuant to House Resolution 323, Green (TX) McGovern Shadegg include tabular and extraneous mate- the previous question is ordered. Green (WI) McHugh Shaw rial. The question is on the engrossment Greenwood McInnis Shays The SPEAKER pro tempore (Mr. Grucci McIntyre Sherman and third reading of the joint resolu- Gutierrez McKeon Sherwood CAMP). Is there objection to the request tion. Gutknecht McKinney Shimkus of the gentleman from Florida? The joint resolution was ordered to Hall (TX) McNulty Shows There was no objection. be engrossed and read a third time, was Hansen Meehan Shuster Harman Meeks (NY) Simmons f read the third time, and passed, and a Hart Menendez Simpson motion to reconsider was laid on the Hastings (WA) Mica Skeen FURTHER CONTINUING APPRO- table. Hayes Millender- Skelton PRIATIONS, FISCAL YEAR 2002 Hayworth McDonald Slaughter f Hefley Miller, Dan Smith (MI) Mr. YOUNG of Florida. Mr. Speaker, Herger Miller, Gary Smith (NJ) pursuant to House Resolution 323, I PROVIDING FOR ADJOURNMENT Hill Miller, George Smith (TX) SINE DIE OF BOTH HOUSES OF Hilleary Miller, Jeff Smith (WA) call up the joint resolution (H.J. Res. Hilliard Mink Snyder 79) making further continuing appro- CONGRESS Hinchey Mollohan Solis priations for the fiscal year 2002, and Mr. ARMEY. Mr. Speaker, I offer a Hinojosa Moore Souder for other purposes, and ask for its im- Hobson Moran (KS) Stearns privileged concurrent resolution (H. Hoeffel Moran (VA) Stenholm mediate consideration. Con. Res. 295) and ask for its imme- Hoekstra Morella Strickland The Clerk read the title of the joint diate consideration. Holden Murtha Stump resolution. The Clerk read the concurrent reso- Holt Myrick Stupak Honda Nadler Sununu The text of House Joint Resolution 79 lution, as follows: Hooley Napolitano Sweeney is as follows: HOUSE CONCURRENT RESOLUTION 295 Horn Neal Tancredo H.J. RES. 79 Hostettler Nethercutt Tanner Resolved by the House of Representatives (the Houghton Ney Tauscher Resolved by the Senate and House of Rep- Senate concurring), That when the House ad- Hoyer Northup Tauzin resentatives of the United States of America in journs on the legislative day of Thursday, Hulshof Norwood Taylor (MS) Congress assembled, That Public Law 107–44 is December 20, 2001, or Friday, December 21,

VerDate 10-DEC-2001 02:43 Dec 22, 2001 Jkt 099060 PO 00000 Frm 00022 Fmt 7634 Sfmt 0634 E:\CR\FM\A20DE7.007 pfrm02 PsN: H20PT1 December 20, 2001 CONGRESSIONAL RECORD — HOUSE H10935 2001, on a motion offered pursuant to this The SPEAKER pro tempore. All time the rules and pass the Senate bill, S. concurrent resolution by its Majority Leader for debate has expired. 1714. or his designee, it stand adjourned sine die, The joint resolution is considered as The question was taken; and (two- or until Members are notified to reassemble having been read for amendment. thirds having voted in favor thereof) pursuant to section 2 of this concurrent reso- the rules were suspended and the Sen- lution, whichever occurs first; and that when Pursuant to House Resolution 322, the Senate adjourns at the close of business the previous question is ordered. ate bill was passed. on Thursday, December 20, 2001, or Friday, The question is on the engrossment A motion to reconsider was laid on December 21, 2001, on a motion offered pursu- and third reading of the joint resolu- the table. ant to this concurrent resolution by its Ma- tion. f jority Leader or his designee, it stand ad- The joint resolution was ordered to journed sine die, or until Members are noti- MAJOR LYN MCINTOSH POST be engrossed and read a third time, was OFFICE BUILDING fied to reassemble pursuant to section 2 of read the third time, and passed, and a this concurrent resolution, whichever occurs The SPEAKER pro tempore. The un- motion to reconsider was laid on the first. finished business is the question of sus- table. SEC. 2. The Speaker of the House and the pending the rules and passing the bill, Majority Leader of the Senate, acting jointly f H.R. 1432. after consultation with the Minority Leader VACATING ORDERING OF YEAS The Clerk read the title of the bill. of the Senate, shall notify the Members of The SPEAKER pro tempore. The the House and the Senate, respectively, to AND NAYS ON H.R. 3423, H.R. 2561, question is on the motion offered by reassemble at such place and time as they AND H.R. 1432 may designate whenever, in their opinion the the gentlewoman from Virginia (Mrs. public interest shall warrant it. Mr. ARMEY. Mr. Speaker, I ask JO ANN DAVIS) that the House suspend The concurrent resolution was agreed unanimous consent to vacate the or- the rules and pass the bill, H.R. 1432. to. dering of the yeas and nays on H.R. The question was taken; and (two- A motion to reconsider was laid on 3423, H.R. 2561, and H.R. 1432 to the end thirds having voted in favor thereof) the table. that the Chair put the question on each the rules were suspended and the bill of those measures de novo. was passed. f The SPEAKER pro tempore. Is there A motion to reconsider was laid on APPOINTING DAY FOR THE CON- objection to the request of the gen- the table. VENING OF THE SECOND SES- tleman from Texas? f SION OF THE 107TH CONGRESS There was no objection. OFFICE OF GOVERNMENT ETHICS Mr. ARMEY. Mr. Speaker, pursuant f AUTHORIZATION ACT OF 2001 to House Resolution 322, I call up the The SPEAKER pro tempore. The un- joint resolution (H.J. Res. 80) appoint- ANNOUNCEMENT BY THE SPEAKER PRO TEMPORE finished business is the question of sus- ing the day for the convening of the pending the rules and passing the Sen- The SPEAKER pro tempore. Pursu- second session of the 107th Congress, ate bill, S. 1202. and ask for its immediate consider- ant to clause 8 of rule XX, the Chair The Clerk read the title of the Senate ation. will now put the question on motions bill. The Clerk read the title of the joint to suspend the rules on which further The SPEAKER pro tempore. The resolution. proceedings were postponed earlier question is on the motion offered by The text of the joint resolution is as today (legislative day of Wednesday, the gentlewoman from Maryland (Mrs. follows: December 19, 2001). MORELLA) that the House suspend the H.J. RES. 80 Votes will be taken in the following rules and pass the Senate bill, S. 1202. Resolved by the Senate and House of Rep- order: The question was taken; and (two- resentatives of the United States of America in S. 1714, de novo; thirds having voted in favor thereof) Congress assembled, H.R. 1432, de novo; the rules were suspended and the Sen- SECTION 1. DAY FOR CONVENING OF SECOND S. 1202, de novo; ate bill was passed. REGULAR SESSION OF ONE HUN- H. Con. Res. 279, de novo; A motion to reconsider was laid on DRED SEVENTH CONGRESS. H.R. 3507, de novo; the table. The second regular session of the One Hun- dred Seventh Congress shall begin at noon on H.J. Res. 75, by the yeas and nays; f concurring in Senate amendments to Wednesday, January 23, 2002. RECOGNIZING SERVICE OF CREW H.R. 2336, de novo; SEC. 2. AUTHORITY FOR CALLING SPECIAL SES- MEMBERS OF USS ENTERPRISE H.R. 3423, de novo; SION BEFORE CONVENING OF SEC- BATTLE GROUP FOR WAR EF- OND REGULAR SESSION. H.R. 2561, de novo; FORT IN AFGHANISTAN If the Speaker of the House of Representa- H.R. 3504, de novo; tives and the Majority Leader of the Senate, H.R. 3487, de novo; The SPEAKER pro tempore. The un- acting jointly after consultation with the H. Con. Res. 292, de novo; finished business is the question of sus- Minority Leader of the House of Representa- S. 1762, de novo; pending the rules and agreeing to the tives and the Minority Leader of the Senate, concurrent resolution, H. Con. Res. 279, determine that it is in the public interest for S. 1793, de novo. Congress to assemble before the convening of The Chair will reduce to 5 minutes as amended. the second regular session of the One Hun- the time for any electronic vote after The Clerk read the title of the con- dred Seventh Congress as provided in section the first such vote in this series. current resolution. 1— The SPEAKER pro tempore. The (1) the Speaker and Majority Leader shall f question is on the motion offered by notify the Members of the House and Senate, PROVIDING FOR PLACEMENT OF the gentleman from Virginia (Mr. respectively, of such determination and of PLAQUE HONORING DR. JAMES SCHROCK) that the House suspend the the place and time for Congress to so assem- rules and agree to the concurrent reso- ble; and HARVEY EARLY IN THE WIL- LIAMSBURG, KENTUCKY, POST lution, H. Con. Res. 279, as amended. (2) Congress shall assemble in accordance The question was taken; and (two- OFFICE BUILDING with such notification. thirds having voted in favor thereof) The SPEAKER pro tempore. Pursu- The SPEAKER pro tempore. The un- the rules were suspended and the con- ant to House Resolution 322, the gen- finished business is the question of sus- current resolution, as amended, was tleman from Texas (Mr. ARMEY) and pending the rules and passing the Sen- agreed to. the gentleman from Missouri (Mr. GEP- ate bill, S. 1714. The title of the concurrent resolution HARDT) each will control 30 minutes. The Clerk read the title of the Senate was amended so as to read: ‘‘Concur- The Chair recognizes the gentleman bill. rent Resolution recognizing and com- from Texas (Mr. ARMEY). The SPEAKER pro tempore. The mending the excellent service of mem- Mr. ARMEY. Mr. Speaker, not seeing question is on the motion offered by bers of the Armed Forces who are pros- the minority leader, I yield back the the gentlewoman from Virginia (Mrs. ecuting the war to end terrorism and balance of my time. JO ANN DAVIS) that the House suspend protecting the security of the Nation.’’

VerDate 10-DEC-2001 01:35 Dec 22, 2001 Jkt 099060 PO 00000 Frm 00023 Fmt 7634 Sfmt 0634 E:\CR\FM\A20DE7.010 pfrm02 PsN: H20PT1 H10936 CONGRESSIONAL RECORD — HOUSE December 20, 2001 A motion to reconsider was laid on Gephardt Linder Roukema ANSWERED ‘‘PRESENT’’—7 Gibbons Lipinski Roybal-Allard Capuano Ehlers Wilson (NM) the table. Gilchrest LoBiondo Royce DeFazio Miller, George Gillmor Lofgren Rush f Dingell Slaughter Gilman Lowey Ryan (WI) COAST GUARD AUTHORIZATION Gonzalez Lucas (KY) Ryun (KS) NOT VOTING—23 Goode Lucas (OK) Sabo ACT FOR FISCAL YEAR 2002 Goodlatte Lynch Sanchez Baker Harman Peterson (PA) Barcia Hastings (FL) Stark Gordon Maloney (CT) Sanders The SPEAKER pro tempore. The un- Clay John Traficant Goss Maloney (NY) Sandlin Clement Johnson, E. B. Waters finished business is the question of sus- Graham Markey Sawyer Conyers Luther Waxman pending the rules and passing the bill, Granger Mascara Saxton Coyne Manzullo Wexler Graves Matheson Schaffer H.R. 3507. Cubin Meek (FL) Young (AK) Green (TX) Matsui Schakowsky The Clerk read the title of the bill. Hall (OH) Meeks (NY) Green (WI) McCarthy (MO) Schiff The SPEAKER pro tempore. The Greenwood McCarthy (NY) Schrock b 1131 question is on the motion offered by Grucci McCollum Scott the gentleman from New Jersey (Mr. Gutierrez McCrery Sensenbrenner Messrs. FILNER, RUSH, JACKSON of Gutknecht McGovern Serrano Illinois and STRICKLAND changed LOBIONDO) that the House suspend the Sessions Hall (TX) McHugh their vote from ‘‘yea’’ to ‘‘nay.’’ rules and pass the bill, H.R. 3507. Hansen McInnis Shadegg The question was taken; and (two- Hart McIntyre Shaw Mr. GEORGE MILLER of California Shays thirds having voted in favor thereof) Hastings (WA) McKeon changed his vote from ‘‘nay’’ to Hayes McNulty Sherman ‘‘present.’’ the rules were suspended and the bill Sherwood Hayworth Meehan Mr. PASTOR changed his vote from was passed. Hefley Menendez Shimkus Herger Mica Shows ‘‘present’’ to ‘‘yea.’’ A motion to reconsider was laid on Shuster the table. Hill Millender- So (two-thirds having voted in favor Hilleary McDonald Simmons thereof) the rules were suspended and Hinchey Miller, Dan Simpson f Skeen the joint resolution was passed. Hinojosa Miller, Gary Skelton Hobson Miller, Jeff The result of the vote was announced REGARDING MONITORING OF Smith (MI) Hoeffel Mink as above recorded. Smith (NJ) WEAPONS DEVELOPMENT IN IRAQ Hoekstra Mollohan Smith (TX) The title of the joint resolution was Holden Moore The SPEAKER pro tempore. The un- Smith (WA) amended so as to read: ‘‘Joint resolu- Holt Moran (KS) Snyder finished business is the question of sus- Honda Moran (VA) tion regarding inspection and moni- Solis pending the rules and passing the joint Hooley Morella Souder toring to prevent the development of Horn Murtha resolution, H. J. Res. 75, as amended. Spratt weapons of mass destruction in Iraq.’’. Hostettler Myrick The Clerk read the title of the joint Stearns Nadler A motion to reconsider was laid on Houghton Stenholm resolution. Napolitano the table. Hoyer Strickland The SPEAKER pro tempore. The Hulshof Neal Stump f question is on the motion offered by Hunter Nethercutt Stupak Hyde Ney MAKING PERMANENT THE AU- the gentleman from Illinois (Mr. HYDE) Sununu Inslee Northup that the House suspend the rules and Sweeney THORITY TO REDACT FINANCIAL Isakson Norwood Tancredo DISCLOSURE STATEMENTS OF pass the joint resolution, H.J. Res. 75, Israel Nussle Tanner JUDICIAL EMPLOYEES AND JUDI- as amended, on which the yeas and Issa Oberstar Tauscher Istook Obey Tauzin CIAL OFFICERS nays are ordered. Jackson (IL) Olver Taylor (MS) The SPEAKER pro tempore (Mr. The vote was taken by electronic de- Jackson-Lee Ortiz Taylor (NC) vice, and there were—yeas 392, nays 12, (TX) Osborne Terry CAMP). The unfinished business is the answered ‘‘present’’ 7, not voting 23, as Jefferson Ose Thomas question of suspending the rules and Otter follows: Jenkins Thompson (CA) concurring in the Senate amendments Johnson (CT) Owens Thompson (MS) [Roll No. 511] Johnson (IL) Oxley Thornberry to the bill, H.R. 2336. YEAS—392 Johnson, Sam Pallone Thune The Clerk read the title of the bill. Jones (NC) Pascrell Thurman The SPEAKER pro tempore. The Ackerman Brown (OH) Deal Jones (OH) Pastor Tiahrt question is on the motion offered by Aderholt Brown (SC) DeGette Kanjorski Pelosi Tiberi Akin Bryant Delahunt Kaptur Pence Tierney the gentleman from Wisconsin (Mr. Allen Burr DeLauro Keller Peterson (MN) Toomey SENSENBRENNER) that the House sus- Andrews Burton DeLay Kelly Petri Towns pend the rules and concur in the Sen- Armey Buyer DeMint Kennedy (MN) Phelps Turner Baca Callahan Deutsch Kennedy (RI) Pickering Udall (CO) ate amendments to the bill, H.R. 2336. Bachus Calvert Diaz-Balart Kerns Pitts Udall (NM) The question was taken; and (two- Baird Camp Dicks Kildee Platts Upton thirds having voted in favor thereof) Baldacci Cannon Doggett Kilpatrick Pombo Velazquez the rules were suspended and Senate Ballenger Cantor Dooley Kind (WI) Pomeroy Visclosky Barr Capito Doolittle King (NY) Portman Vitter amendments were concurred in. Barrett Capps Doyle Kingston Price (NC) Walden A motion to reconsider was laid on Bartlett Cardin Dreier Kirk Pryce (OH) Walsh the table. Barton Carson (IN) Duncan Kleczka Putnam Wamp Bass Carson (OK) Dunn Knollenberg Quinn Watkins (OK) f Becerra Castle Edwards Kolbe Radanovich Watson (CA) ELIGIBILITY OF CERTAIN PER- Bentsen Chabot Ehrlich Kucinich Rahall Watt (NC) Bereuter Chambliss Emerson LaFalce Ramstad Watts (OK) SONS FOR BURIAL IN ARLING- Berkley Clayton Engel LaHood Rangel Weiner TON NATIONAL CEMETERY Berman Clyburn English Lampson Regula Weldon (FL) Berry Coble Eshoo Langevin Rehberg Weldon (PA) The SPEAKER pro tempore. The un- Biggert Collins Etheridge Lantos Reyes Weller finished business is the question of sus- Bilirakis Combest Evans Largent Reynolds Whitfield pending the rules and passing the bill, Bishop Condit Everett Larsen (WA) Riley Wicker Blagojevich Cooksey Farr Larson (CT) Rodriguez Wilson (SC) H.R. 3423, as amended. Blumenauer Costello Ferguson Latham Roemer Wolf The Clerk read the title of the bill. Blunt Cox Filner LaTourette Rogers (KY) Wu The SPEAKER pro tempore. The Boehlert Cramer Flake Leach Rogers (MI) Wynn question is on the motion offered by Boehner Crane Fletcher Levin Rohrabacher Young (FL) Bonilla Crenshaw Foley Lewis (CA) Ros-Lehtinen the gentleman from New Jersey (Mr. Bono Crowley Forbes Lewis (GA) Ross SMITH) that the House suspend the Boozman Culberson Ford Lewis (KY) Rothman Borski Cummings Fossella rules and pass the bill, H.R. 3423, as amended. Boswell Cunningham Frank NAYS—12 Boucher Davis (CA) Frelinghuysen The question was taken; and (two- Boyd Davis (FL) Frost Abercrombie Hilliard Paul thirds having voted in favor thereof) Brady (PA) Davis (IL) Gallegly Baldwin Lee Payne Brady (TX) Davis, Jo Ann Ganske Bonior McDermott Rivers the rules were suspended and the bill, Brown (FL) Davis, Tom Gekas Fattah McKinney Woolsey as amended, was passed.

VerDate 10-DEC-2001 01:35 Dec 22, 2001 Jkt 099060 PO 00000 Frm 00024 Fmt 7634 Sfmt 0634 E:\CR\FM\K20DE7.029 pfrm02 PsN: H20PT1 December 20, 2001 CONGRESSIONAL RECORD — HOUSE H10937 The title of the bill was amended so The question was taken; and (two- Foley Kolbe Rogers (KY) Forbes LaHood Rogers (MI) as to read: ‘‘A bill to amend title 38, thirds having voted in favor thereof) Ford Largent Rohrabacher United States Code, to enact into law the rules were suspended and the bill Fossella Larsen (WA) Ros-Lehtinen eligibility of certain Reservists and was passed. Frelinghuysen Latham Royce their dependents for burial in Arling- A motion to reconsider was laid on Ganske LaTourette Rush Gekas Leach Ryan (WI) ton National Cemetery, and for other the table. Gibbons Lewis (CA) Ryun (KS) purposes.’’. Gilchrest Lewis (KY) Sawyer A motion to reconsider was laid on f Gillmor Linder Saxton Gilman Lipinski Schaffer the table. SUPPORTING THE GOALS OF THE Goode LoBiondo Schrock f YEAR OF THE ROSE Goodlatte Lucas (KY) Sensenbrenner Gordon Lucas (OK) Sessions LIVING AMERICAN HERO The SPEAKER pro tempore. The un- Goss Maloney (CT) Shadegg APPRECIATION ACT finished business is the question of sus- Graham Maloney (NY) Shaw pending the rules and agreeing to the Granger Mascara Shays Graves Matheson Sherman The SPEAKER pro tempore. The un- concurrent resolution, H. Con. Res. 292. finished business is the question of sus- Green (WI) McCrery Sherwood The Clerk read the title of the con- Greenwood McHugh Shimkus pending the rules and passing the bill, current resolution. Grucci McInnis Shuster H.R. 2561, as amended. The SPEAKER pro tempore. The Gutierrez McIntyre Simmons The Clerk read the title of the bill. Gutknecht McKeon Simpson question is on the motion offered by Hall (TX) McNulty Skeen The SPEAKER pro tempore. The the gentlewoman from Virginia (Mrs. Hansen Mica Smith (MI) question is on the motion offered by JO ANN DAVIS) that the House suspend Hart Miller, Dan Smith (TX) the gentleman from New Jersey (Mr. Hastings (WA) Miller, Gary Souder the rules and agree to the concurrent Hayes Miller, Jeff Stearns SMITH) that the House suspend the resolution, H. Con. Res. 292. Hayworth Mollohan Stenholm rules and pass the bill, H.R. 2561, as The question was taken; and (two- Hefley Moore Strickland amended. thirds having voted in favor thereof) Herger Moran (VA) Stump The question was taken; and (two- Hill Morella Stupak the rules were suspended and the con- Hilleary Myrick Sununu thirds having voted in favor thereof) current resolution was agreed to. Hobson Nethercutt Sweeney the rules were suspended and the bill, A motion to reconsider was laid on Hoekstra Ney Tancredo Holden Northup Tauzin as amended, was passed. the table. The title of the bill was amended so Hooley Norwood Taylor (MS) Horn Nussle Taylor (NC) as to read: ‘‘A bill to amend title 38, f Hostettler Ortiz Terry United States Code, to increase the Houghton Osborne Thomas rate of special pension for recipients of ESTABLISHING FIXED INTEREST Hoyer Ose Thornberry the Medal of Honor and to make that RATES FOR STUDENT AND PAR- Hulshof Otter Thune ENT BORROWERS Hunter Oxley Tiahrt special pension effective from the date Hyde Pence Tiberi of the act for which the recipient is The SPEAKER pro tempore. The un- Isakson Petri Toomey awarded the Medal of Honor and to finished business is the question of sus- Issa Phelps Turner Istook Pickering Upton amend title 18, United States Code, to pending the rules and passing the Sen- Jenkins Pitts Vitter increase the criminal penalties associ- ate bill, S. 1762. Johnson (CT) Platts Walden ated with misuse or fraud relating to The Clerk read the title of the Senate Johnson (IL) Pombo Wamp Johnson, Sam Pomeroy Watkins (OK) the Medal of Honor.’’. bill. Jones (NC) Portman Watts (OK) A motion to reconsider was laid on The SPEAKER pro tempore. The Kanjorski Pryce (OH) Weldon (FL) the table. question is on the motion offered by Keller Putnam Weldon (PA) the gentleman from Ohio (Mr. Kelly Quinn Weller f Kennedy (MN) Radanovich Whitfield BOEHNER) that the House suspend the Kerns Rahall Wicker AMENDING PUBLIC HEALTH SERV- rules and pass the Senate bill, S. 1762. Kildee Ramstad Wilson (NM) ICE ACT WITH RESPECT TO The question was taken. King (NY) Regula Wilson (SC) ORGAN PROCUREMENT ORGANI- Kingston Rehberg Wolf The SPEAKER pro tempore. In the Kirk Reynolds Young (FL) ZATIONS opinion of the Chair two-thirds of those Knollenberg Riley present have voted in the affirmative. The SPEAKER pro tempore. The un- NOES—148 RECORDED VOTE finished business is the question of sus- Abercrombie Doggett Lantos pending the rules and passing the bill, Mr. GEORGE MILLER of California. Ackerman Dooley Larson (CT) H.R. 3504. Mr. Speaker, I demand a recorded vote. Allen Engel Lee The Clerk read the title of the bill. A recorded vote was ordered. Andrews Eshoo Levin Baird Etheridge Lewis (GA) The SPEAKER pro tempore. The The vote was taken by electronic de- Baldwin Evans Lofgren question is on the motion offered by vice, and there were—ayes 257, noes 148, Becerra Farr Lowey the gentleman from Florida (Mr. BILI- not voting 29, as follows: Berkley Filner Lynch Berman Flake Markey RAKIS) that the House suspend the rules [Roll No. 512] Berry Frank Matsui and pass the bill, H.R. 3504. AYES—257 Blumenauer Frost McCarthy (MO) Bonior Gephardt McCarthy (NY) The question was taken; and (two- Aderholt Boswell Crane Borski Gonzalez McCollum thirds having voted in favor thereof) Akin Boyd Crenshaw Boucher Green (TX) McDermott Armey Brady (TX) Culberson the rules were suspended and the bill Brady (PA) Hilliard McGovern Baca Brown (SC) Cunningham was passed. Brown (FL) Hinchey McKinney Bachus Bryant Davis, Jo Ann Brown (OH) Hinojosa Meehan A motion to reconsider was laid on Baldacci Burr Davis, Tom Capps Hoeffel Meeks (NY) Ballenger Burton Deal the table. Capuano Holt Menendez Barr Buyer DeLay Carson (IN) Honda Millender- f Barrett Callahan DeMint Clayton Inslee McDonald Bartlett Calvert Diaz-Balart Clyburn Israel Miller, George NURSE REINVESTMENT ACT Barton Camp Doolittle Condit Jackson (IL) Mink Bass Cannon Doyle The SPEAKER pro tempore. The un- Crowley Jackson-Lee Moran (KS) Bentsen Cantor Dreier Cummings (TX) Murtha finished business is the question of sus- Bereuter Capito Duncan Davis (CA) Jefferson Nadler Biggert Cardin Dunn pending the rules and passing the bill, Davis (FL) Jones (OH) Napolitano Bilirakis Carson (OK) Edwards H.R. 3487. Davis (IL) Kennedy (RI) Neal Bishop Castle Ehlers DeFazio Kilpatrick Oberstar The Clerk read the title of the bill. Blagojevich Chabot Ehrlich DeGette Kind (WI) Obey The SPEAKER pro tempore. The Blunt Chambliss Emerson Delahunt Kleczka Olver Boehlert Coble English question is on the motion offered by DeLauro Kucinich Owens Boehner Collins Everett the gentleman from Florida (Mr. BILI- Deutsch LaFalce Pallone Bonilla Cooksey Fattah Dicks Lampson Pascrell RAKIS) that the House suspend the rules Bono Costello Ferguson Dingell Langevin Pastor and pass the bill, H.R. 3487. Boozman Cramer Fletcher

VerDate 10-DEC-2001 01:35 Dec 22, 2001 Jkt 099060 PO 00000 Frm 00025 Fmt 7634 Sfmt 0634 E:\CR\FM\K20DE7.031 pfrm02 PsN: H20PT1 H10938 CONGRESSIONAL RECORD — HOUSE December 20, 2001 Paul Sanders Thompson (MS) APPOINTMENT OF COMMITTEE OF GRANTING MEMBERS OF THE Payne Sandlin Thurman Pelosi Schakowsky Tierney TWO MEMBERS TO INFORM THE HOUSE PRIVILEGE TO EXTEND Peterson (MN) Schiff Towns PRESIDENT THAT THE TWO AND REVISE REMARKS IN CON- Price (NC) Scott Udall (CO) HOUSES HAVE COMPLETED GRESSIONAL RECORD UNTIL Rangel Serrano Udall (NM) THEIR BUSINESS OF THE SES- LAST EDITION IS PUBLISHED Reyes Shows Velazquez Rivers Skelton Visclosky SION Mr. ARMEY. Mr. Speaker, I ask Rodriguez Smith (WA) Watson (CA) Mr. ARMEY. Mr. Speaker, I offer a unanimous consent that Members may Roemer Snyder Watt (NC) Ross Solis Waxman privileged resolution (H. Res. 327) and have until publication of the last edi- Rothman Spratt Weiner ask for its immediate consideration. tion of the CONGRESSIONAL RECORD au- Roybal-Allard Tanner Woolsey The Clerk read the resolution, as fol- thorized for the first session by the Sabo Tauscher Wu Sanchez Thompson (CA) Wynn lows: Joint Committee on Printing to revise H. RES. 327 and extend their remarks and to in- NOT VOTING—29 Resolved, That a committee of two Mem- clude brief, related extraneous mate- Baker Hall (OH) Roukema bers be appointed by the House to join a rial on any matter occurring before the Barcia Harman Slaughter similar committee appointed by the Senate, adjournment of the first session sine Clay Hastings (FL) Smith (NJ) Clement John Stark to wait upon the President of the United die. Combest Johnson, E. B. Traficant States and inform him that the two Houses The SPEAKER pro tempore. Is there Conyers Kaptur Walsh have completed their business of the session objection to the request of the gen- Cox Luther Waters and are ready to adjourn, unless the Presi- tleman from Texas? Coyne Manzullo Wexler dent has some other communication to make There was no objection. Cubin Meek (FL) Young (AK) to them. Gallegly Peterson (PA) The resolution was agreed to. f A motion to reconsider was laid on b 1153 EXPRESSING THE WILL OF THE the table. HOUSE THAT THE NATION HAVE So (two-thirds not having voted in The SPEAKER pro tempore. Pursu- A SAFE AND HAPPY HOLIDAY favor thereof) the motion was rejected. ant to House Resolution 327, the Chair PERIOD appoints the following Members of the The result of the vote was announced Mr. ARMEY. Mr. Speaker, I ask House to the committee to notify the as above recorded. unanimous consent that it be the will President: The gentleman from Texas Stated against: of this House that all this Nation have (Mr. ARMEY) and the gentleman from a very merry holiday period that is Ms. SLAUGHTER. Mr. Speaker, I was un- Missouri (Mr. GEPHARDT). able to be present for rollcall vote No. 512. safe and happy for all their families. Had I been present, I would have voted ‘‘no.’’ The SPEAKER pro tempore. Is there f objection to the request of the gen- f tleman from Texas? AUTHORIZING THE SPEAKER, MA- There was no objection. JORITY LEADER, AND MINORITY HIGHER EDUCATION RELIEF OP- LEADER TO ACCEPT RESIGNA- f PORTUNITIES FOR STUDENTS TIONS AND MAKE APPOINT- ACT OF 2001 LAYING ON THE TABLE H. RES. MENTS NOTWITHSTANDING SINE 290, H. RES. 291, H. RES. 317, H. The SPEAKER pro tempore (Mr. DIE ADJOURNMENT RES. 318, AND H. RES. 321 SIMPSON). The unfinished business is Mr. ARMEY. Mr. Speaker, I ask Mr. DREIER. Mr. Speaker, I ask the question of suspending the rules unanimous consent that until the day unanimous consent that the following and passing the Senate bill, S. 1793. the House convenes for the second ses- resolutions be laid on the table: H. Res. The Clerk read the title of the Senate sion of the 107th Congress, and not- 290, H. Res. 291, H. Res. 317, H. Res. 318, bill. withstanding any adjournment of the and H. Res. 321. The SPEAKER pro tempore. The House, the Speaker, the majority lead- The SPEAKER pro tempore. Is there question is on the motion offered by er, and the minority leader may accept objection to the request of the gen- the gentleman from California (Mr. resignations and make appointments tleman from California? MCKEON) that the House suspend the authorized by law or by the House. There was no objection. rules and pass the Senate bill, S. 1793. The SPEAKER pro tempore. Is there objection to the request of the gen- f The question was taken; and (two- tleman from Texas? thirds having voted in favor thereof) APPOINTMENT OF HON. TOM the rules were suspended and the Sen- There was no objection. DAVIS OR HON. WAYNE T. ate bill was passed. GILCHREST TO ACT AS SPEAKER f PRO TEMPORE TO SIGN EN- A motion to reconsider was laid on ROLLED BILLS AND JOINT RESO- the table. AUTHORIZING SPEAKER TO AP- LUTIONS UNTIL HOUSE CON- VENES FOR SECOND SESSION OF f POINT MEMBER TO PERMANENT SELECT COMMITTEE ON INTEL- 107TH CONGRESS LIGENCE NOTWITHSTANDING The Speaker pro tempore laid before FIXED INTEREST RATES FOR STU- SINE DIE ADJOURNMENT the House the following communica- DENT AND PARENT BORROWERS Mr. ARMEY. Mr. Speaker, I ask tion from the Speaker: (Mr. ARMEY asked and was given unanimous consent that until the day WASHINGTON, DC, permission to address the House for 1 the House convenes for the second ses- December 20, 2001. minute and to revise and extend his re- sion of the 107th Congress, the Speaker, I hereby appoint the Honorable TOM DAVIS marks.) pursuant to clause 11 of rule X and or, if not available to perform this duty, the Honorable WAYNE T. GILCHREST to act as Mr. ARMEY. Mr. Speaker, I would clause 11 of rule I, and notwithstanding Speaker pro tempore to sign enrolled bills just like to point out that increasing the requirement of clause 11(a)(1) of and joint resolutions until the day the House student loans and making them less ex- rule X, may appoint a Member to the convenes for the second session of the 107th pensive and costly has been a big part Permanent Select Committee on Intel- Congress. of our objectives in this majority, and ligence to fill the existing vacancy J. DENNIS HASTERT, we are very disappointed in the loss of thereon. Speaker of the House of Representatives. this bill that just failed, S. 1762. I will The SPEAKER pro tempore. Is there The SPEAKER pro tempore. Without mention that we will be having that objection to the request of the gen- objection, the appointment is ap- bill available under a rule as soon as tleman from Texas? proved. we can reconvene in the next session. There was no objection. There was no objection.

VerDate 10-DEC-2001 01:35 Dec 22, 2001 Jkt 099060 PO 00000 Frm 00026 Fmt 7634 Sfmt 0634 E:\CR\FM\A20DE7.015 pfrm02 PsN: H20PT1 December 20, 2001 CONGRESSIONAL RECORD — HOUSE H10939 MARSHALL UNIVERSITY GMAC This is not only unfair, it is discrimi- greater champion. Working families in BOWL CHAMPIONS natory. America have no greater champion (Mr. RAHALL asked and was given Mr. Speaker, I ask my colleagues to than DAVID BONIOR. He has been a permission to address the House for 1 consider cosponsoring this legislation. model leader. He has been a tireless minute and to revise and extend his re- We do not take it away from the urban worker for workers. We all owe him a marks.) health care providers. We do adjust up- tremendous debt of gratitude. I urge Mr. RAHALL. Mr. Speaker, last ward the formula for rural areas. my colleagues to join me in paying night’s GMAC Bowl in Mobile, Ala- f tribute to the gentleman from Michi- bama could have carried a warning gan (Mr. BONIOR). TRIBUTE TO MELVIN SMITH Mr. GEORGE MILLER of California. from the Surgeon General: Not rec- (Mr. BARTLETT of Maryland asked Mr. Speaker, will the gentlewoman ommended for those with heart condi- and was given permission to address yield? tions. In the end, with all due respect the House for 1 minute and to revise Ms. PELOSI. I yield to the gentleman to the gentleman from North Carolina and extend his remarks.) from California. (Mr. JONES), the best team won. Mr. BARTLETT of Maryland. Mr. Mr. GEORGE MILLER of California. In only its fifth year, the Marshall Speaker, it is my pleasure to pay trib- Mr. Speaker, I join in this tribute to a University Thundering Herd stampeded ute to one of my constituents, Melvin career of remarkable service as a Mem- over East Carolina. Although the Herd Smith of Ellicott City, Maryland, who ber of this Congress, as our chief dep- was down 38–8 at half-time, the enthu- is retiring after more than 33 years of uty whip, and as our whip for the last siasm of Marshall’s fans did not waiver. distinguished service with the United 10 years to my friend, the gentleman But Marshall rallied in the third Parcel Service, the UPS. Mel was born from Michigan (Mr. BONIOR), who will quarter and charged on in the fourth. on September 30, 1946, in Los Angeles, be stepping down from that position of When time expired, the game was tied California. He attended Fremont High whip and will be going on to run a suc- at 51. The noble opponents battled School and Los Angeles City College, cessful race for Michigan. I have sup- through two overtimes before Byron and served in the Vietnam War. ported him in everything he has ever Leftwich connected on a pass to Josh He began his 33-year UPS career in run for, and I plan to continue to sup- Davis, ending the contest and securing 1968 as a package car driver in southern port him. I have never been more proud the laurels of victory for our Thun- California. In 1976, Mel began his man- of a public servant. dering Herd. As the headline in the agement career when he was promoted I have to say to the Members of this Huntington Herald Dispatch reads this House and to the public that may be to full-time supervisor in the feeder morning, ‘‘Miracle in Mobile.’’ listening, this is an individual that all transportation department. In 1981, I congratulate Marshall’s tenacious of us can be proud that his district sent Mel was promoted to hub division man- players and coaches, and applaud its him to Washington because he never, ager, and in 1993 he was promoted to faithful fans. Few football programs never once veered from the track of district manager. Before Mr. Smith’s have suffered as severe a loss, struggled taking care of the needs of his district. retirement, he served as the chief oper- so valiantly, and risen to such heights, And as the gentlewoman from Cali- ating officer of the UPS Atlanta dis- all in the course of 30 years. fornia (Ms. PELOSI) has pointed out, on trict serving Maryland, Delaware, and During half time, Coach Bobby behalf of working families, he made it parts of West Virginia. Pruett, who hails from my hometown part of our agenda, he made it part of Mel has always been active in numer- of Beckley, West Virginia, talked with our lexicon, he made it part of our ous charities. In Maryland, Mr. Smith his team of belief and faith. It is a les- principles and part of our morality. He has served in a leadership capacity for son we should all remember, not only has done it in almost every meeting the United Way, the Baltimore Urban in times of need, but in our everyday that I have been in. He has done it on League, and the Baltimore Chapter of lives. our motions to recommit. the NAACP. f We are not always given the best Mr. Speaker, I congratulate Mel forum here to pursue these issues, but b 1200 Smith, his wife Debra Ann, and his en- he has made sure that every oppor- tire family. Mel, enjoy your retire- RURAL EQUITY PAYMENT INDEX tunity we had, we did do it. Why? Be- ment. REFORM ACT cause of his strong convictions about a (Ms. PELOSI asked and was given notion of economic and social justice (Mr. BEREUTER asked and was permission to speak out of order for 5 in this country, that those individuals given permission to address the House minutes and to revise and extend her who get up and go to work every day for 1 minute and to revise and extend remarks.) and work hard, that they ought to have his remarks.) f the rewards to be able to support their Mr. BEREUTER. Mr. Speaker, I ad- TRIBUTE TO THE HONORABLE families. If they fall on economic hard vise Members that today I am intro- times, there ought to be an income ducing the Rural Equity Payment DAVID E. BONIOR, MEMBER OF CONGRESS supplement program so they do not Index Reform Act, a bill that will ad- have to lose their car or house or take dress the difference in reimbursement Ms. PELOSI. Mr. Speaker, today, and their children out of school. levels between urban and rural physi- I do not want to use the word ‘‘last,’’ Mr. Speaker, many people we are see- cians and other health professionals. but just in terms of chronology, today ing in this recession have worked 15, 20, The formulas presently used by the is the last day that our great minority 30 years, and now they find themselves Medicare program to reimburse these whip, Democratic whip of the House, unemployed. He has been a champion. health professionals for beneficiaries’ the gentleman from Michigan (Mr. I had the pleasure of traveling with medical care do not accurately meas- BONIOR) will serve in that capacity DAVID to Central America in pursuit of ure the cost of providing services; and, while the House is in session. social and economic justice in Central consequently, Medicare currently pays We will benefit for years to come America at a time when the violence rural providers less than it should for from his service, 10 years, an historic was unbelievable. Many people forget equal work. 10 years as Democratic whip of the what was taking place in Central According to the Centers for Medi- House, 4 years as chief deputy whip be- America, the murder of American citi- care and Medicaid Services, ‘‘physician fore that. That incredible experience is zens, of religious individuals, of the work’’ is the amount of time, skill and marked not only by longevity, but by archbishop, of so many people who intensity a physician puts into pa- the quality of his service. Leaders for were simply trying to get along, trying tients’ visits. Physicians and other all time to come will benefit from the to live a life in Central America. He health care providers in rural areas put example that he has set as a leader. spent an incredible amount of his en- in as much or even more time, skill Working families into perpetuity in ergy trying to bring the peace process and intensity into a patient visit as do our country have benefited and will around. We were eventually successful physicians in urban areas. Yet, rural continue to benefit from his cham- in Nicaragua, in El Salvador, and Gua- physicians are paid less for their work. pioning of their issues. They have no temala trying to stop the violence. The

VerDate 10-DEC-2001 00:06 Dec 22, 2001 Jkt 099060 PO 00000 Frm 00027 Fmt 7634 Sfmt 0634 E:\CR\FM\K20DE7.035 pfrm02 PsN: H20PT1 H10940 CONGRESSIONAL RECORD — HOUSE December 20, 2001 gentlewoman has been deeply involved some of the darkest hours of World War Judy and to your family, we wish you in those issues with us. II, spoke to the British people and the the best. Mr. Speaker, we should all aspire to world when he said, ‘‘We make a living There have been folks who have tried be such a champion of economic and by what we get, but we make a life by to demonize DAVID BONIOR, but his social justice. what we give.’’ By that high standard, genuineness comes through, and they DAVID, I am very, very proud to have DAVID BONIOR has lived and will con- cannot do it. His gentle strength will served in this Congress with you. I am tinue to live an extraordinarily suc- prevail. It prevailed in what he did be- very proud to be your friend, and I cessful life. His passion, his decency fore he came here, it prevailed here, know that you are going to do great and his integrity will be a model for fu- and it will prevail as he serves as Gov- things for the people of Michigan and ture public servants for generations to ernor of the State of Michigan. God for the people of this Nation. come, and I am honored to be his friend bless DAVID BONIOR, and I thank the Mr. EDWARDS. Mr. Speaker, will the and his colleague. gentleman for all that he has given to gentleman yield? Ms. PELOSI. Mr. Speaker, in hon- all of us. Ms PELOSI. I yield to the gentleman oring the service of DAVID BONIOR, his Mr. Speaker, I yield to the gentle- from Texas. vision, his knowledge, his effective- woman from California (Ms. WOOLSEY). Mr. EDWARDS. Mr. Speaker, this is ness, his energy, his integrity, his ex- not a eulogy. The gentleman from b 1215 perience, indeed the people of Michigan Michigan (Mr. BONIOR) is alive and are very blessed to have him as their Ms. WOOLSEY. DAVID, what am I well, I am happy to say. But I must going to do without you? Good grief. I take this opportunity as we end this future Governor. I also want to acknowledge his very have been here 8 years. After we lost session of Congress and his career as experienced staff who have served this the House in 1994, dithering, all of us, the Democratic whip, recognizing he Congress so well, the staff of DAVID frustrated, all of us, I got a call from will continue to serve his district and BONIOR. I know that others will speak one of my sons. All of my kids tell me our country in Congress next year, I what I should be doing here because want to say that knowing the gen- today about DAVID and his staff, but I wanted to be sure to acknowledge their they are smart and they care. My son tleman from Michigan (Mr. BONIOR) said, ‘‘Mother, I hope you’re listening personally and professionally has been considerable contributions to this body as well. to DAVE BONIOR.’’ I said, ‘‘Well, yeah, one of the tremendous rewards of all of what are you saying?’’ And he said, my years in public service, whether (Ms. DELAURO asked and was given permission to speak out of order for 5 ‘‘He’s the only one that’s saying any- that be in Texas or here in the Nation’s thing.’’ Capital. minutes and to revise and extend her remarks.) So I started listening more closely, Many Americans may not know the because I knew the background and f name DAVID BONIOR, but millions of de- what you brought to us all along, but I cent working families across America TRIBUTE TO HONORABLE DAVID E. listened to your message, and it be- are living a better life today, making BONIOR, MEMBER OF CONGRESS came very important to me to get on higher wages. Even those living at the Ms. DELAURO. Mr. Speaker, I come your team, to be part of it. Thank you bottom of the economic rung on min- for putting me on the whip organiza- imum wage, have a higher minimum this afternoon to say thank you to the tion so I can do what I do best, which wage today than they would have had gentleman from Michigan (Mr. is rally and push and nudge and count. had it not been for one person’s pas- BONIOR). Ten years ago I first came to It has been a pleasure working for you. sionate commitment to working fami- this institution, and at this very place Thank you very much. I have learned lies and their opportunity to have a de- I was given the honor of seconding the more from you than you will ever cent life for their children, and that is nomination of DAVID BONIOR for whip. I know. the gentleman from Michigan (Mr. have served with him for 10 years. I My nice constituents worry about me BONIOR). have known him for 14 years. I learned DAVID BONIOR, I am convinced, will from him as a mentor. I learned the here because they think it is kind of a be the next Governor of Michigan. skills of serving as a whip with him. I mean place and a lot of them will say, While I do not know all of the voters of learned the battle for economic and so- ‘‘How can you stand to work with all that great State, I have to believe that cial justice in Central America with those people?’’ And I say, ‘‘Uh-uh, I get they recognize integrity and decency him. to work with DAVE BONIOR.’’ They go, when they see it. He comes from the earth, he comes oh, yeah, there are good people there What I have seen for 5 years working from a family of working-class Ameri- too; among others, of course. under the gentleman from Michigan cans, the way so many of us come to Thank you again. I miss you already. (Mr. BONIOR) as the chief deputy whip this institution. And he came here and Our loss is Michigan’s gain for sure. is the epitome of decency and integ- he accomplished good public policy for Ms. DELAURO. I yield to the gen- rity. For anyone who might be cynical the great people of this Nation. And in tleman from California (Mr. FARR). about our democratic process in Amer- all that time, and in all that time, he Mr. FARR of California. Mr. Speaker, ica, I wish they could have seen up never faltered. He never was afraid to I rise with deep regret that DAVID close and firsthand what I have seen in stand up. He has never been afraid to BONIOR is leaving this institution. I ar- the person I call my friend, DAVID championing the cause of the people of rived here about 9 years ago. It was in BONIOR. this country. And because of that te- a special election. But I think of all the His accomplishments are too numer- nacity and that brutal effectiveness, he people I have met, DAVID BONIOR was ous to mention in this brief time has changed the lives of people in this the kindest person I met. What I have today, but they are well earned. They country. learned over the years of working here are significant. But I would conclude No one has fought harder for worker is, this is a tough institution; and to my remarks with two thoughts. It is standards, for minimum wage, for survive and to be into leadership, you not the tremendous accomplishments those things that help people to live have got to have tough skin, but you of making the difference for working their lives because he understands have also got to have a kind and soft families of America, and there is a list their lives. He is a peaceful veteran, heart. of specific achievements that I will ul- and, like myself, a Catholic who cares The wonderful thing about DAVID timately respect the gentleman from about life in its broader sense. His BONIOR is how much he gives of himself Michigan (Mr. BONIOR) for, and al- sense of integrity, his sense of honesty to everybody else’s problem. He will though they are tremendously impor- and his soul will be missed in this in- come to your district. And when he tant, it is the kind of person that he is, stitution. sees a wrong, he is out there trying to the kind of human being he is, so hon- He will go on to do wonderful things, right it, whether it is in the fields of est, treating everyone as we would and we are all here for you, DAVID. We farm workers in California, whether it want others to treat us. will stand with you and do what you is in the stockyards, wherever it may I would just conclude with this want and try to help you be the next be in the United States, where men and thought. Winston Churchill, during Governor of Michigan. To you and to women are suffering or are not having

VerDate 10-DEC-2001 01:50 Dec 22, 2001 Jkt 099060 PO 00000 Frm 00028 Fmt 7634 Sfmt 0634 E:\CR\FM\K20DE7.037 pfrm02 PsN: H20PT1 December 20, 2001 CONGRESSIONAL RECORD — HOUSE H10941 a fair wage, a fair treatment in their for what he is, because what he is has TRIBUTE TO THE HONORABLE workplace, DAVID BONIOR is the first to kept other Members here and running DAVID E. BONIOR, MEMBER OF be there to understand the problem and for office because of his beliefs and his CONGRESS the first on the floor to talk about unwillingness to change who he is and Ms. WOOLSEY. Mr. Speaker, I yield righting that wrong. who he represents and how he loves to the gentleman from Nebraska. The people of Michigan are so fortu- people, that it is still possible to be Mr. BEREUTER. Mr. Speaker, we nate to have this person in elective of- here and to carry those values so close have people here who make a very fice. I hope they have the good wisdom to your heart. In fact, they are his major contribution. There are partisan to select him as governor because he is heart. differences in this body, too many to going to be a great leader in this coun- I just want to say from the Buckeye my judgment, but when a person here try as a governor, as he was a Member State, always a competitor to those to is retiring from an important post and of the House of Representatives. He the north, that we deeply, deeply ap- still going to make some contributions rose to a leadership position. Who preciate your service to the people of here, no doubt, I think he ought to be knows, if he were staying here, he our country and the world. We appre- recognized for the extraordinary public could have been Speaker of the House, ciate your service as a spokesman for service that he has provided here. perhaps Vice President of the country, those who have no voice or who have I admire DAVE BONIOR for the kind of and maybe those days will still come. less voice. You have never wavered, person he is as well as for his effective- But this is truly one of the great you have always been a gentleman, you ness. I was thinking just yesterday, if I Members serving in a great institution have always been a leader, you have al- might say to the gentleman from at a great time in our history. This in- ways been a scholar. Michigan, about you and the gen- It has been my deep privilege to serve stitution is going to suffer with his tleman from Illinois, Mr. EVANS, be- with you, Congressman DAVE BONIOR of leaving, but the people of Michigan I cause to your credit some years ago, Michigan. May you be Michigan’s next hope will have the great wisdom to you helped Mr. Cavanaugh and I, two governor. I only wish I could vote for keep him in the public limelight and Nebraskans, deauthorize the O’Neill you. God bless you. keep him in public office by electing project, which made it possible for us him as their governor. Mr. WU. Mr. Speaker, will the gentle- woman yield? to subsequently declare the Niobrara (By unanimous consent, Ms. KAPTUR Ms. KAPTUR. I yield to the gen- River as a scenic river. It is the most was allowed to speak out of order for 5 tleman from Oregon. appreciated ecological feature in the minutes.) Mr. WU. I thank the gentlewoman for State of Nebraska by its citizens today. f yielding. So we actually owe you a debt of TRIBUTE TO THE HONORABLE Mr. Speaker, the wonderful thing gratitude in Nebraska. You stepped up DAVID E. BONIOR, MEMBER OF about being a junior Member is that all and helped John Cavanaugh and this CONGRESS the large issues are thoroughly ad- Member at that time, along with Mr. dressed by others. I just want to focus EVANS. I want to commend you for Ms. KAPTUR. Mr. Speaker, I rise to briefly for one moment on how DAVID your public service, but also thank say what a joy it has been in my life BONIOR has treated fellow Members and you, as a Nebraskan, for what you did for 19 years to be able to work with the me. to preserve part of our natural herit- great gentleman from the State of I have seen him defend others with age. Michigan, DAVE BONIOR. There must be whom he deeply disagrees. I have seen I thank the gentlewoman for yield- something in the water of Lake Michi- his gentle guidance on sensitive votes. ing. gan and Lake Erie to produce the Phil And I also wanted to share just briefly Ms. WOOLSEY. Mr. Speaker, I yield Harts of this country and the Dave how well he treated me as a very new to the gentleman from Vermont. Boniors. I want to thank the Wolverine Member of Congress. With a name that Mr. SANDERS. I thank the gentle- State for sending this incredibly decent starts with W, I was definitely last in woman for yielding. I was watching C– human being here to the Congress of my class. Yet he spent a chunk of time Span and I heard all these fine words the United States. with me early on when it was just of about DAVID BONIOR. I thought, ‘‘My There are many things I like about benefit to me and clearly of no benefit God, something has happened. He’s DAVE BONIOR. The first thing I like is to him. dead. What a shame.’’ his wife. I think Judy is just so incred- But we spent some time together. I I came down here, he looks very good ible and what a great partnership they learned many, many things, but I want and the only thing that is happening to do have. But I like the way that he to mention three specific things that him is, he is going to be governor of treats her. I like the way he treats the he said to me: There is a small lunch- the great State of Michigan and cer- Members. I watch the way he treats room where you should share food with tainly while it is our loss, it is Michi- people, always with great love and with other Members and get to know them. gan’s gain. affection and with such great passion Be sure to get some exercise. And there In this institution, given all of the for the work that he does. is a spiritual piece to being here and political and economic and financial We have had so many fights here that you should pay attention to that, also. pressures that are on all the Members, deal with economic justice domesti- It took me 6 months to eat lunch it is very difficult to hold out a moral cally and internationally. DAVE BONIOR with any regularity. After being here compass, to be very sure that the val- has always been at the head of that for 3 years, I think I am finally getting ues that you are fighting for are what line. He has always been leading us. I to the exercise piece. And I am working you believe. It is doubly difficult to do can remember during the great fight on hard toward the spiritual piece. I tell that year after year. The first year you the rules that would govern trade in this story because I think that it is an could do it and the second year, but the Americas, as he stood here and he allegory for DAVE as he goes on to the after many years, it becomes harder talked about what would happen to governor’s race and far beyond, because and harder to do. working people on this continent in the as we are eating lunch or getting exer- I think on virtually every issue af- factories and on the farms, I was sit- cise or becoming more spiritual, for fecting the lives of working people, ting out there with tears in my eyes; DAVE BONIOR, for this country as a whether it is helping people join unions and I thought, how could he have the whole, it is always the case that the and fight for their dignity there, strength and the intestinal fortitude, best is yet to be, the best of life for whether it is developing a sane trade knowing what is going to happen, to which the rest was meant. policy which protects the needs of stand there and to be such a strong ad- Thank you, DAVE, for treating every- American workers or raising the min- vocate and to maintain his passion and one, large, small and in the middle imum wage or affordable housing or all his composure. That was a point in my with grace and with dignity. Thank the things that millions and millions of career where I could not have done you very, very much. working families need, year after year, that. (By unanimous consent, Ms. WOOLSEY right up here, at this podium, DAVE I hope that from him I have learned was allowed to speak out of order for 5 BONIOR has been leading the fight. We how to do that better, and I thank him minutes.) are very proud of him, not just because

VerDate 10-DEC-2001 00:06 Dec 22, 2001 Jkt 099060 PO 00000 Frm 00029 Fmt 7634 Sfmt 0634 E:\CR\FM\K20DE7.039 pfrm02 PsN: H20PT1 H10942 CONGRESSIONAL RECORD — HOUSE December 20, 2001 he is a good politician; because of the your State. Yet I know your State has I yield to the gentlewoman from Indi- strong sense of morality and values such incredible diversity, with aspects ana. that motivate him. of the new economy as well, with the Ms. CARSON of Indiana. Mr. Speak- DAVID, you have been an inspiration service economy, as well as the manu- er, I thank the gentleman for yielding. to all of us. My wife says that you are facturing economy, and you seem to Mr. Speaker, I was sitting in my of- her second favorite Congressman. I am have somehow captured all of those fice planning to do some work before I not sure who the first one is, to tell threads. drive back to Indianapolis, and saw you the truth, but we are going to miss I know from your remarks before the this very special man was being praised you very much and the people of Michi- Democratic Caucus yesterday that you today, a man who is worthy of praise, gan are very lucky to have you. also have appreciation for the out- a hero who has earned his medal of Ms. WOOLSEY. Mr. Speaker, I yield doors. I come from Maine, and this is honor, if you will. to the gentleman from Maine. real important to me. But I know how DAVID BONIOR knew JULIA CARSON be- Mr. ALLEN. Mr. Speaker, like the much you have walked around the fore JULIA CARSON knew DAVID BONIOR. gentleman from Vermont, I was in my State, how much time you spend on When I first declared my candidacy for office watching C-Span. I looked at all your own, getting away from this this august body, he was one of the these bright faces down here in the hurly-burly, in order to renew yourself first people who obviously believed front rows, DAVID BONIOR’s staff and so that you can do the best thing, day- that I was going to get elected and DAVID sitting down here, as well, and I to-day, for the people who sent you came out to Indiana to do what he could see him so I knew he was not here to the House and who I believe could with his resources and his brain gone; but I did want to come over and will send you to the Governor’s man- power. say a few things about DAVE BONIOR. sion in Michigan. Even beyond that, DAVID BONIOR has First of all, DAVID, I just want to I cannot help but think that, to me, struck me as the perfect illustration of thank you for all you have done for me. you have always been someone who has family values. A lot of us get up to the I cannot tell you how much I appre- Michigan in his bones, Michigan in his microphone, and we tap dance about ciate having been part of the whip or- blood, and Michigan in his dreams, and family values and we waive the flag ganization and having the chance to I know that you will be a fabulous gov- and my country tis of Thee and God work with Members here on the floor ernor for the people of Michigan. bless America. But DAVID BONIOR has to make sure that the right thing gets Thank you very much. never missed the mark in terms of (Mr. HOLT asked and was given per- done on particular pieces of legislation. what is great and good and right for mission to speak out of order for 5 min- For those who do not know all the the American family and the United utes.) details, the whip organization is really States of America. He is a gentleman’s a way of bringing information to other f gentleman, he is a politician’s politi- Members so that they are voting with TRIBUTE TO THE HONORABLE cian, he is a family man par excellence. good information and not necessarily DAVID E. BONIOR, MEMBER OF I do not want to look at him because bad information, that they have com- CONGRESS I am going to cry, but I love DAVID plete information. DAVID has done this Mr. HOLT. Mr. Speaker, this is not BONIOR and I want to tell you that. Mr. HOLT. Mr. Speaker, I yield to job extraordinarily well for many the time to recount the full Congres- the gentleman from Massachusetts years. sional career of DAVE BONIOR, because But beyond that, I have to say, this he continues to build on that record, (Mr. NEAL). Mr. NEAL of Massachusetts. Mr. is a city, not alone in the country, but but I would like to speak for a moment Speaker, I, like JULIA CARSON, was sit- this is a city where people’s faces can about the way that he does the job of ting in my office and I heard the trib- turn and their votes can turn to those whip, the job he is leaving within the who have money and to those who have House now. ute, and I wanted to come over for just power. But not with DAVID BONIOR. Be- We all know that there is a strong a couple of seconds and highlight I cause DAVID BONIOR in the House of competitive streak in DAVE BONIOR. We think DAVE’s contributions to this in- Representatives has been what I think have seen it on the baseball field, we stitution, but, most importantly, to the Founding Fathers expected of a have seen it in close votes, but we also the American family. Representative, that he would rep- see that in everything he does he ex- DAVID BONIOR’s sense of America is resent all of the people all of the time udes decency and civility. community, and what he means by and not be diverted by special inter- Civility has been talked about so community is a place where nobody is ests. I cannot think of anyone in this much in this House in recent years. ever to be abandoned and nobody is Congress who has consistently day When I say DAVE BONIOR exudes civil- ever to be left behind. after day after day, in a long legisla- ity, I mean that it is really contagious. One of the best speeches I ever heard tive career, kept the people in his dis- And when I look at his staff, some of on this House floor came the night that trict right in the forefront of his mind. his staff here with him today, I know DAVID led us in opposition to the He has not forgotten them ever in that they would agree with me that NAFTA treaty, when he raised the terms of what he does here and what they do their jobs better and probably question for all of us here that night of we do here. would agree that they are better people what the Edmond Pettis Bridge meant because of their association with DAVE to a generation of Americans, and what b 1230 BONIOR and the way he does his job, it meant to cross that bridge, what it So I think it is a remarkable career which helps them do their job, and meant to have a sense of justice and and he is a remarkable human being. helps all of us here in Congress do our fairness and equity in this life, a catho- As I have gotten to know DAVID over job. lic sense of justice; fairness, equity, the the last 5 years here, several things It is a remarkable ability that DAVE notion that you just cannot walk by have struck me. One is that he treats BONIOR has to improve the performance the poor, that you just cannot aban- everyone the same, which is, as I said, of everyone round them so that com- doned them and turn your back, that not common in this place, and that he petition does not mean meanness, and government is there in the end to help is receptive to information and to peo- it does not lead to a lack of civility. them. ple from all walks of life. The way you do the job as whip, Another thing I am going to say But the other thing I have noticed is DAVE BONIOR, is a model for every pub- about DAVID, in an institution that you know where DAVID BONIOR comes lic servant. We will talk about all you really troubles me, because many of from. He comes from Michigan, and in have done in your Congressional will the people that have gotten here on many respects my image of Michigan is career later after we are congratu- both sides of the aisle, they have run shaped by you, DAVID, because I know lating you for your election as Gov- this institution into the ground day in how important working men and ernor. But, for now, I want to thank and day out with their diatribes on women who have had to join unions in you for what you have done for each of what has always been wrong, and then order to get ahead, to have decent us individually here in the House of they abandon in the next breath term wages and decent benefits, have been to Representatives. limits, they abandoned the line item

VerDate 10-DEC-2001 01:50 Dec 22, 2001 Jkt 099060 PO 00000 Frm 00030 Fmt 7634 Sfmt 0634 E:\CR\FM\K20DE7.041 pfrm02 PsN: H20PT1 December 20, 2001 CONGRESSIONAL RECORD — HOUSE H10943 veto, they abandon things like dis- Mr. FRANK. Mr. Speaker, reclaiming House and served with DAVID for many turbing the Constitution based upon my time, I just want to make two years as part of the whip operation, every whim that moves along. points. and for somebody who comes from Not DAVID BONIOR. DAVID BONIOR be- First of all, recently we did have a Texas and sounds like I do, to get to lieved in something, and for too many real eulogy for a Member who passed know DAVID and to appreciate him and people that have come to this institu- away, our late colleague Joe Moakley, to realize he is a very low-keyed indi- tion for the last few years, their beliefs and the outpouring of affection and re- vidual, but, as someone said earlier, are bland. Their beliefs are based upon spect for Joe Moakley was very impres- very competitive, because I also have the emotion of the moment, there is no sive. I am in a position to tell you, as had the opportunity to play basketball long-held view of anything. someone who was a neighbor to Joe with him, and not just try and pass or It has been an honor for me to serve Moakley’s district, there was no one in defeat legislation. So he is competi- with DAVID, and, most importantly, I this business that he admired more tive, but he is very low-keyed. supported you when you ran for these than DAVID BONIOR. Typically if I have something to say, jobs and was glad to do it. The manner One of the things Joe Moakley made I am not only out there and in your in which you carried yourself day in his goal was when DAVE BONIOR ran for face, but DAVID is very quiet about it. and day out, you could be as fierce a whip was to get Massachusetts Mem- So I appreciate that, and I think a lot partisan as there was, but you loved bers to vote for him. So let me just of us could emulate what he does. this institution, and, most impor- past on that if Joe Moakley was still But working with him for these 9 tantly, you loved the community that with us, you would be hearing from years, I appreciate not only his inward we call the American family. him his enormous respect and admira- strength, but also his dedication to the Thanks for all the goods things you tion for DAVID BONIOR. issues. It helps having, even though, did, DAVE. I want to thank him for one other again, a very urban district in Hous- (Mr. FRANK asked and was given thing. I am a great believer in free ton, and DAVID being from Michigan, permission to speak out of order for 5 speech. I generally vote against it having a lot of blue collar workers, minutes.) when we start telling adults what they some of the same demands are in f can read and what pictures they can Michigan on the economy as we have in show of each other. But if I was going TRIBUTE TO THE HONORABLE Houston, Texas, a very industrialized to amend the Constitution, I would DAVID E. BONIOR, MEMBER OF district. make it illegal to use the words ‘‘prag- CONGRESS So I just appreciate, DAVE, your work matism’’ and ‘‘idealism’’ as if they here in the House. Like say, I have Mr. FRANK. Mr. Speaker, I will were in opposition to each other. only seen you the last five terms, but begin by yielding to the gentleman The notion that the world should be the American people and the people of from Guam (Mr. UNDERWOOD). divided between people who have a Michigan owe you a debt of gratitude Mr. UNDERWOOD. Mr. Speaker, I strong set of values and people who are for your work here in the House. thank the gentleman for yielding me to effective is really a disaster morally. Obviously, if it does any good for speak on this. In fact, the more you are committed to somebody who sounds like me to come Mr. FRANK. I will yield to the gen- a set of ideals, the more you are mor- up and knock doors in Michigan, I will tleman to speak anywhere he wishes, ally obligated to be effective in imple- be up there. other than Guam. menting those ideals. Otherwise, they So, DAVID, obviously we will be serv- Mr. UNDERWOOD. I wanted to take are just something you put on in the ing with you for the next year. But not the time to pay tribute to DAVID morning to make yourself feel good. only as our whip, but also just as a per- BONIOR. In a way this is great, because, They do not do anybody else any good. son, we will miss you, and I know I will you know, you get to see all your I know of nobody else in politics who too. Thank you, DAVE. friends. You do not have to wait until better exemplifies that synthesis. I you pass away. This is a terrific oppor- know of nobody else who is equally a b 1245 tunity to pay honor to our friend here. passionate idealist in politics because (Mr. PAYNE of New Jersey asked and But I have an office with a very not- he has a vision of the world that he was given permission to speak out of so-eloquent title of Non-voting Dele- wants to have implemented, which order for 5 minutes.) gate to the U.S. House of Representa- would be a fairer and kinder and better tives. It is always a curiosity to me, world for people who are in need in var- f because he is the whip. He is supposed ious ways, and who, at the same time, TRIBUTE TO THE HONORABLE to count votes, and he knows I do not understands that that gives him the matter in that count. But it is really a DAVID E. BONIOR, MEMBER OF obligation to be as effective as pos- CONGRESS mark of his approach to politics and sible; fair but tough; understanding the his commitment to every member of rules and abiding by the rules; but put- Mr. PAYNE. Mr. Speaker, I guess I the caucus that he has taken the time ting everything every ounce of energy did not think any Members looked at and the energy to support me in the into it. And for his exemplifying that their screens in the office, at least various projects that I have had. merger of pragmatism and idealism, after we adjourn, but I too was looking When I first decided to run for this for understanding that a tough-minded at the screen and I saw the gentleman office, he received me very well and he approach to political reality in fact is from Massachusetts (Mr. NEAL) come took the time to try to understand a necessary compliment to a commit- and say that he was looking at his some of the issues and some of the ment to a set of values you want to im- screen and saw that there was a pro- unique circumstances that we deal plement, I want to join in honoring gram, so to speak, being held. I fussed with. For a long time, and it is a mark DAVID BONIOR and thank him for what at my scheduler, who was out to lunch, of the high regard and the approach he has shown us. because I did not know about this, but that DAVID has taken over the years, (Mr. GREEN of Texas asked and was I am so glad that I was listening. for a long time I thought I was the given permission to speak out of order I too want to simply add to what has only one that had a special relation- for 5 minutes.) already been said about a person that I ship with him, but, as it turns out, he f have just respected for as long as I has got hundreds of these special rela- have been here in the House. I think tionships, and that is really a mark TRIBUTE TO THE HONORABLE that first connection, as I am from the and a testimony to the terrific job that DAVID E. BONIOR, MEMBER OF 10th Congressional District too, of New you have done. CONGRESS Jersey, but I knew there had to be Mr. Speaker, despite all the trials Mr. GREEN of Texas. Mr. Speaker, something good about the gentleman and tribulations here, when people ask like my colleagues, I was actually over from Michigan (Mr. BONIOR). We had me who are some of the Members that in my office and did not know that this the same number. And then looking at you really admire, certainly he comes was happening today. But I have had his high school achievements, I tried to to mind. the honor to serve five terms in this play a little ball and I see where DAVE

VerDate 10-DEC-2001 02:00 Dec 22, 2001 Jkt 099060 PO 00000 Frm 00031 Fmt 7634 Sfmt 0634 E:\CR\FM\K20DE7.044 pfrm02 PsN: H20PT1 H10944 CONGRESSIONAL RECORD — HOUSE December 20, 2001 was a quarterback on the champion- took me under his wing and taught me have some idea of what legislative ship team at the Catholic school he at- the process. He is a student of par- business might be transacted with ev- tended and earned a scholarship to col- liamentary procedure, and we had a lit- erybody no longer in Washington. lege and just worked his way through tle group called the parliamentarian The SPEAKER pro tempore. The the military. group that we used to use, sometimes Chair would suggest consultation with But the issue that DAVE has really to our substantive advantage and the leadership. dealt with, I recall when I was in coun- sometimes to the chaos of the House, Ms. NORTON. Mr. Speaker, if many of us ty government many years ago, we but when we wanted to try to get had our way, DAVE BONIOR would never leave talked about a ‘‘bottle bill,’’ and it was things accomplish that the leadership this House. No one can or would begrudge a because DAVE sort of pushed that envi- would not voluntarily accomplish. man of DAVE’s multiple talents another high of- ronmental concern ahead many years It has been a great pleasure for me to fice, as Governor of Michigan, or deny the ago when he was in government in serve with DAVID BONIOR. He has cer- people of Michigan the extraordinary leader- Michigan’s State legislature. We tainly been at the top of the list of ship he will bring. Yet, the place DAVE has talked about environmental protection principal people who have served in carved out here in public service to his district, for PCBs, in that DAVE was always wor- this House with strong beliefs in, and his state, and his country is an unique as it is rying about people who might be af- willingness to fight for, working people lasting and unforgettable. flicted by these diseases that many and the things that he believes in. This DAVE is a modest man who possesses large times went unnoticed because the big House is going to miss him immensely personal gifts. You can bet, therefore, that he guys sort of kept things quiet, even and wish him godspeed and the very is embarrassed by the spontaneous, maximum though they knew they were injurious best in the future. praise usually reserved for eulogies that is to the health of people, and it was Mr. PAYNE. Mr. Speaker, I yield coming forward for him today. But, DAVE is DAVE who talked about these birth de- time to the gentlewoman from Cali- going to have to grin, or blush, and bear it. fects that were being created. fornia (Ms. PELOSI). DAVE BONIOR has managed to lead the The statement of ‘‘let us separate the Ms. PELOSI. Mr. Speaker, I thank Democrats on issues when he agreed and warrior from the war,’’ taking the the gentleman for yielding and for our when he did not by using his good head with- Vietnam era veterans and separating excellent words about our colleague. out ever losing his own heart and soul on them from an unpopular war, and as In conclusion, I would like to thank issues of principle to him and his own con- people turned their backs, I think it all of our colleagues for coming. This stituents. Where DAVE got his bewildering was a disgrace the way Vietnam vet- was intended to be 5 minutes. Our combination of great calm and fierce deter- erans were treated; but DAVE talked phone is ringing off the hook in the of- mination I cannot say. Perhaps that kind of about that and sort of raised the issue, fice saying, why did you not tell us versatility is honed in the success DAVE has along with the whole question of the that this was going to happen, so we had in two very different games, basketball, Nicaragua Contras in El Salvador, will need many more days, Mr. Speak- and football. those brutal death squads, when we er, to accommodate the words that The hallmark of the game DAVE played in traveled down there together. It was people want to say about the greatness the House was fairness, strategic skill, and de- DAVE always on the side of things that of DAVID BONIOR. I thank him for the votion to principle. I am personally grateful for were for justice, for those who were vision with which he has led us, with DAVE’s strong support and action when the down and out, the HOPE scholarships his knowledge, with his experience, Democratic House voted to allow a vote in the and increasing Pell grants, increasing with his integrity. Every one of us who Committee of the Whole for the people of the minimum wage. These are the areas, serves in this body has a great privi- District of Columbia, the first time District resi- the SAVE Act, which really went to lege to do so. One of our greatest privi- dents who are second per capita in Federal in- help guidance counselors. leges, though, is to have called DAVID come taxes have ever had a vote on the So I am just proud to say that I know BONIOR colleague. House floor since the Nation was founded. DAVE. I had the opportunity to vote in f Members of every variety can quote countless 1991, and there was not even a question examples of thoughtful, critical support for when he ran for his current position. I ANNOUNCEMENT BY THE SPEAKER PRO TEMPORE their districts or their issues DAVE has gath- happen to pick winners in that, even in ered. However, the affection and respect for the new one too, DAVE; so one of my The SPEAKER pro tempore (Mr. DAVE is not centered in mere individual grati- strengths in Congress is that I know SIMPSON). The Chair will recognize tude but fundamentally in the way he brought how to pick the winners. It does not Members for Special Order speeches the best of this institution to bear. say much about me, but it does say without prejudice to the resumption of DAVE BONIOR’s tenure as a member of Con- that maybe I have good judgment. legislative business. gress from Michigan and as whip has pre- I do wish the gentleman from Michi- f pared him well to be Michigan’s next Gov- gan (Mr. BONIOR) well. I appreciate the PARLIAMENTARY INQUIRY ernor. Between these two roles, DAVE has courage that he takes when there are shown a mastery of both executive and legis- Mr. FRANK. Mr. Speaker, parliamen- difficult votes to give, unpopular votes. lative skills. Add this unique bonus to DAVE’s We have talked about many of these tary inquiry. extraordinary personal qualities, and the peo- issues. I think some of the things that The SPEAKER pro tempore. The gen- ple of Michigan are guaranteed to continue to tleman may state it. we have talked about in the past, now get from DAVE what they certainly deserve but Mr. FRANK. What legislative busi- others are seeing that there are issues much more than they bargained for. that we should have been talking about ness? all along which might have made a dif- The SPEAKER pro tempore. If there f ference in where we are today. is legislative business that comes from SPECIAL ORDERS It has been my pleasure to know you. the Senate. Mr. Speaker, as we draw this, what Mr. FRANK. Well, I wonder, is any The SPEAKER pro tempore. Under has turned into a Special Order, to a contemplated? I think the minority the Speaker’s announced policy of Jan- conclusion, I am pleased to yield to the would have an interest in that pros- uary 3, 2001, and under a previous order gentleman from North Carolina (Mr. pect. Does anyone know if any legisla- of the House, the following Members WATT). tive business is contemplated? will be recognized for 5 minutes each. Mr. WATT of North Carolina. Mr. The SPEAKER pro tempore. The f Speaker, I thank the gentlewoman for Chair has been informed that there yielding. I could not resist the oppor- may be legislative business. CONTRIBUTIONS OF THE U.S. tunity to come over and say how much Mr. FRANK. Well, I have checked NAVY TO OUR VICTORY IN AF- my good friend, DAVID BONIOR, has with our staff here who usually have GHANISTAN meant to me in my service in the U.S. good channels of communication. We The SPEAKER pro tempore. Under a House of Representatives. I came to did not know about any, and I would previous order of the House, the gen- Congress in January of 1993, and DAVID express some hope that there would be tleman from Illinois (Mr. KIRK) is rec- was certainly one of the people who some communication so that we would ognized for 5 minutes.

VerDate 10-DEC-2001 02:00 Dec 22, 2001 Jkt 099060 PO 00000 Frm 00032 Fmt 7634 Sfmt 0634 E:\CR\FM\K20DE7.046 pfrm02 PsN: H20PT1 December 20, 2001 CONGRESSIONAL RECORD — HOUSE H10945 Mr. KIRK. Mr. Speaker, I requested ability and flexibility of the modern flexibility arriving over their targets. this time to highlight the contribution Navy that is unprecedented. The USS This diplomatic limitation meant that of the United States Navy to our vic- Kitty Hawk is operated as a Mobile Off- naval aviation had to carry the vast tory in Afghanistan. shore Logistics Base, serving as a load of the work in Afghanistan. After the September 11 attacks, the launch platform and supply base for I want to make special note of the investigation quickly turned to Osama Special Operations forces operating in- Navy’s electronic warfare aircraft and bin Laden and his al Qaeda training side Afghanistan. This large carrier did what they did. camps in Afghanistan. At first glance, not launch strike aircraft, but adapted With that, let me just close by saying a war in Afghanistan offered few op- to the unconventional needs of the war that we want to take this opportunity tions for the United States. Afghani- ahead. to thank the men and women of the stan has no coast line and is situated The Navy and Marine Corps tactical following battle groups: the Enterprise, hundreds of miles from any shoreline. air assets have also remained flexible, the Roosevelt, the Vinson, Kitty Hawk, None of the nations bordering Afghani- agile, and adaptable. The ability to Bataan, the Bonhomme, Richard, and stan would permit U.S. strikes against rapidly retask aircraft and Tomahawk the many men and women of the 15th Afghanistan from their own soil. missiles provides the combatant com- and 26th MEUs. To the men and women With few options, President Bush mander with the flexibility he needs to of Enduring Freedom, we wish you a turned to the one asset in our military engage the enemy. For example, Navy happy holiday and the thanks of a that can strike anywhere at any time, F–14 fighters have been engaged in air- grateful Nation; and in the words of without needing permission from any- to-ground strike missions, missions the the Navy, we would say ‘‘Bravo Zulu.’’ one, the United States Navy, which aircraft was not originally intended to f moved into action. In fact, September perform. The ability to position air- 11 fits the classic model of any crisis in craft carriers just offshore has allowed b 1300 our recent past. One of the first ques- the coalition to strike targets for spe- tions any President asks in time of na- TRIBUTE TO MR. AND MRS. cial operations in Afghanistan. The ULYSSES B. KINSEY tional peril is this: Where are the car- nearest base from which the Air Force riers? has been able to launch strike aircraft The SPEAKER pro tempore (Mr. In this case, the USS Enterprise was in the region is Kuwait, leaving the SIMPSON). Under a previous order of the in the Indian Ocean, heading home bulk of close air support to the Navy. House, the gentlewoman from Cali- after a long deployment in the Gulf. On any given day, naval aircraft have fornia (Ms. WATSON) is recognized for 5 Her crew saw the aircraft hit the World been flying 60 to 80 strike sorties as minutes. Trade Center and Pentagon on CNN; part of the campaign against al Qaeda. Ms. WATSON of California. Mr. and without direction from Wash- Naval strike aircraft have flown more Speaker, I come to pay tribute to a ington, the skipper ordered his battle than 4,000 strike sorties and dropped couple that exemplifies strong family group to come about and head for values and ideals, Ulysses and Chris- harm’s way. Within minutes of this cri- nearly 5,000 weapons against Afghani- stan. While the Air Force has per- tine Kinsey, who celebrate their 60th sis beginning, the United States Navy, wedding anniversary on December 28, our Navy, was moving into position to formed most of the long-range stra- tegic bombing, the Navy and Marine 2001, in Florida. strike back at our enemies in the heart Ulysses Bradshaw Kinsey, or U.B., as of Central Asia. Corps have provided all of the close air support and precision strike capabili- he was lovingly called, and Christine The war against terrorism is unlike Teresa Stiles, met while attending col- any war we have fought before. Of the ties required by forces on the ground. For many of us unfamiliar with the lege at the Florida A&M University, approximately 60,000 U.S. military and married in Tampa, Florida. The members currently deployed as part of geography of Central Asia, the scale and scope of the task before the Navy wedding ceremony was performed on Operation Enduring Freedom, more December 28, 1941, at the home of than half are sailors or Marines. The is hard to understand. If you were to superimpose a map of Afghanistan on Christine’s parents. Navy and Marine Corps has served as U.B.’s values of compassion, fairness, the backbone of Operation Enduring the eastern United States, our carriers would be based off the coast of Pensa- and integrity were instilled while Freedom. working in his father’s grocery store. From the very beginning, the Navy cola, Florida, and the aircraft would be He closely observed his father’s treat- has been involved in power projection striking targets near Milwaukee. That ment of people regardless of race, and combat operations against Osama capability, providing global reach to color, creed, or status. U.B. also ad- bin Laden, the al Qaeda network, and our Commander in Chief, gives the the Taliban. Two weeks prior to the United States options and influence far mired his mother for her kindness and first shots of the war, the USS Enter- in excess of any other nation. thoughtfulness towards others. prise was on station in the Arabian Sea, The capability to strike hard and By watching her mother, who was an ready to launch strike aircraft against deep requires a complicated ballet of enterprising and industrious role model Taliban air defenses at a moment’s no- personnel and equipment that is during the Depression, Christine tice. At the same time, Navy sub- daunting, at best, from the many ships learned the art of making ends meet marines were positioned near Afghani- supplying and protecting the battle and training others to do so. Christine stan, gathering intelligence on the groups to teams maintaining the air- epitomized both her parents in her de- movements of Taliban and al Qaeda craft to the air crews of airborne con- velopment of compassion and values leadership and preparing to insert trol, tankers, electronic warfare sup- about hard work. These lessons helped Navy Special Operation forces, namely, port, fighter caps, and close air sup- for her to become an excellent home- the legendary SEALs. These missions port. We have won another war from maker, a caring mother, a resourceful performed by the ‘‘silent service’’ are the air. wife, and are reflected in the way she frequently cloaked in secrecy, but are I want to note the contribution of and her husband raised their six chil- vital to our efforts in Afghanistan. the sister services, especially the Air dren: Eula, Bradshaw, Bernard, Cas- More than 50 U.S. Navy ships have Force’s heavy bombers, that dropped sandra, Cheryl, and Linda. participated in Operation Enduring most of the strategic ordnance in this The cultivation of U.B. and Freedom, including five aircraft car- campaign. They made a vital contribu- Christine’s relationship over the years riers and two Amphibious Ready tion to this effort. But the key support has given stability, guidance, struc- Groups, carrying the 15th and 16th Ma- was provided by tactical aircraft, close ture, and a positive role model, and the rine Expeditionary Units. U.S. Navy air support for our troops, provided results were shown in their children. and coalition surface combatants con- overwhelmingly by the Navy. This husband and wife team, residing tinue to play an important role in on- The tactical aircraft from the U.S. now in West Palm Beach, Florida, has going interdiction missions in the Ara- Air Force were very limited because, far-reaching influence across the coun- bian Sea. from Kuwait, 13 hours’ flight from Af- try and out to California, in Califor- Navy ships operating in the Arabian ghanistan, gave permission for U.S. nia’s 32nd District. My constituent, Sea have demonstrated the adapt- strikes from their soil. They had little Bernard William Kinsey, is the former

VerDate 10-DEC-2001 00:06 Dec 22, 2001 Jkt 099060 PO 00000 Frm 00033 Fmt 7634 Sfmt 0634 E:\CR\FM\K20DE7.049 pfrm02 PsN: H20PT1 H10946 CONGRESSIONAL RECORD — HOUSE December 20, 2001 senior vice president of Xerox Corpora- THE RIGHT OF COUNTRIES TO along here with Mark Johnson and tion and President of KBK Enterprises, SELF-DEFENSE AGAINST TER- Gerald Slaminski. In late 1999 at the a consulting firm located in Los Ange- RORISM, AND RECOGNIZING Port Angeles Customs Station in Wash- les, California. Bernard was a member BRAVE AMERICANS ON THE ington State, she thought one of the of Our L.A. and instrumental in re- FRONT LINES, AT HOME AND people were behaving suspiciously. She building Los Angeles after the 1992 up- ABROAD detained him. As they looked further, rising. The SPEAKER pro tempore. Under a they thought he had stuff for a meth The other Kinsey children, teachers, previous order of the House, the gen- lab in the car. executives, and operating an elderly tleman from Indiana (Mr. SOUDER) is It turned out they were handling care home, have all contributed to the recognized for 5 minutes. progress in this great Nation. Mr. SOUDER. Mr. Speaker, as we de- nitroglycerine. He had enough weapons U.B. Kinsey retired July 31, 1989, part for the Christmas and the rest of to blow up LAX Airport, where they after 39 years of service as the prin- the holiday season, we all pray for had the information that that was cipal of Palm View Elementary. While peace and justice in the world. But I where he was headed to rendezvous there, he watched more than 30,000 stu- think that I have some concerns, as do with another person. dents enroll and graduate. The school others, that some people are having Because one Customs officer detained was renamed U.B. Kinsey Palm View difficulty sorting the differences be- and went through a thorough examina- Elementary School, an unprecedented tween terrorists and those who are try- action in recognizing a living African tion, and two other Customs officers ing to respond to terrorism. basically violated orders and chased American former principal. The people who attacked the World the person down the street, because we Christine Kinsey has provided care, Trade Towers and who blew Americans love, and support to her husband, her up are not the same as when people have this absurd position right now family, and her community for over 60 like us try to respond. We need to un- that if the person can get away from years. Among other organizations, derstand that same difference in Israel. the immediate border, they cannot be Christine has been involved with the For example, when a terrorist who at- chased, but they took it in their hands YWCA, the Tabernacle Baptist Church, tacks innocent people who are going to chase him. and the Palm Beach County School about their daily routine with the sole We saved LAX Airport, and we also District. purpose of causing terror, that is dif- have a suspect who has been one of the Mr. Speaker, U.B. and Christine ferent than trying to respond with as Kinsey serve as a shining example of key people, or we have a convict, basi- much precision as possible, although cally, at this point, who has been one America’s family values and ideals. there may be innocents killed, which is This congressional tribute to the 60th of the key people in identifying the al- unfortunate, but it is still different. We Qaeda network in the United States wedding anniversary of the Kinseys ex- cannot hold Israel to a different stand- and around the world. That informa- emplifies what is good in our country, ard than we hold ourselves. and makes us, because of their con- We now see the same problem in tion hopefully will save and has al- tributions, the greatest country in the India. Once again, terrorists have ready saved and will save more lives in world. Congratulations and commenda- stormed their Parliament and they America and around the world. tions. have attempted to kill and assassinate We need to thank these public serv- Mr. Speaker, I yield to the gentleman the leadership of a democratic country. ants who are so key in keeping each of from Ohio (Mr. BROWN). These are difficult times. They are dif- us safe, not only during this holiday TRIBUTE TO HONORABLE DAVID S. BONIOR, ficult for us when we try to figure out season, but all year long. MEMBER OF CONGRESS how to respond, too. We all need to be Mr. BROWN of Ohio. Mr. Speaker, I carefully and prayerfully thinking of Before closing, I would also like to want to say a word about my friend, any response that might lead to more add a few words of tribute to the gen- the gentleman from Michigan (Mr. death in the world. tleman from Michigan (Mr. BONIOR). I BONIOR). At the same time, it would be wrong came in as a fierce partisan in 1995. I In 1965, a Mississippi civil rights lead- for the United States to say that it is have tremendous respect for people er said, Do not tell me what you be- okay for us to respond to terrorists, who are also fierce partisans. lieve; show me what you do, and I will and not for other countries. We all, in- I also know he is a good man, a dedi- tell you what you believe. cluding us, should be wise and careful cated Midwesterner who stands up for When I hear these words I think of in our responses, but respond we must. the working man. And whether or not the gentleman from Michigan (Mr. I would also like to pay tribute to BONIOR), I think of his 10 years as those brave Americans who are on the Members disagree with each other at Democratic whip, and I think of his front lines protecting us all the time; times, it is important to have civility leadership on issues of Central Amer- not only our soldiers in Afghanistan in this body. I believe he has been a ica, on issues of trade, on issues of so- and throughout the world, particularly fierce partisan, and that helps lead us cial justice. those who are in immediate harm’s to the type of debate that we have to He did not just pay lip service, as way, but also to all the brave firemen have in America if we are going to ar- many in this institution do, to those and policemen who daily risk their rive at public policy. issues. The kind of hard work, the kind lives to help us. We have all become Too often, it seems to be coming in of day-to-day effort, the kind of per- more aware of their sacrifices. this day and age that we are trending sistence, the kind of stick-to-itiveness I also want to thank all those on the towards blow-dried cookie cutters, that the gentleman from Michigan (Mr. front lines trying to protect us from fu- where we all sound the same, we all BONIOR) brought to this job, always in ture terrorist attacks: those in the the name of social justice, always in Coast Guard, the INS, the Border Pa- move the same. It is important that we the name of doing the right thing, trol, the DEA, the FBI, the U.S. Mar- have people of conviction and people standing on the floor doing special or- shals, and the U.S. Customs Service. that follow the patterns that many be- ders, doing meetings in his office, mak- Every day they are trying to protect us fore us have set. ing calls to groups to encourage them from future terrorist attacks and from I, too, will miss him in a different to lobby this Congress, all that he did chemical and biological attacks, way. I will not miss part of his abilities in the name of social justice, all that whether it be anthrax, heroin, small- and I will not miss part of his enthu- he did in the name of fair trade, meant pox, or cocaine. siasm for his cause, but it is always a so much to all of us. Protecting our borders is not easy. It tragedy when we lose dedicated leaders Do not tell me what you believe; takes people of judgment, and daily who spent their lives having such an show me what you do, and I will tell they have to exercise that judgment. you what you believe. That describes I was recently along a number of the impact. the gentleman from Michigan (Mr. borders in Washington State. Diane I have appreciated his time here as BONIOR). Dean is one of our American heroes, one of the rowdy class of 1994.

VerDate 10-DEC-2001 00:06 Dec 22, 2001 Jkt 099060 PO 00000 Frm 00034 Fmt 7634 Sfmt 0634 E:\CR\FM\K20DE7.050 pfrm02 PsN: H20PT1 December 20, 2001 CONGRESSIONAL RECORD — HOUSE H10947 IN APPRECIATION OF MEMBERS the gentleman from Massachusetts will not miss him that much. He will OF CONGRESS AND IN TRIBUTE (Mr. FRANK); the gentleman from New be around. TO SUPPORTIVE AND CAPABLE Jersey (Mr. PAYNE); the gentleman Jerry Hartz. Jerry has been with me STAFF from North Carolina (Mr. WATT); and now for, I do not want to get these The SPEAKER pro tempore. Under a the gentleman from Indiana (Mr. things wrong, but it has been at least previous order of the House, the gen- SOUDER), I thank him for his com- 15 years, since 1987. So let me do my math, about 15 years, and he will be tleman from Michigan (Mr. BONIOR) is ments. continuing on serving this great insti- recognized for 5 minutes. Thanks also to Harold Volkmer who Mr. BONIOR. Mr. Speaker, first of came here, I saw him on the floor. tution, and he is an enormously tal- all, let me apologize to my friend, Elie Many of you knew him; he served many ented individual, a floor person here who we relied on. Wonderful family. Abboud, who has been waiting for me years in the House. He was a classmate Jerry started in our offices when we for an hour and a half to have lunch. I of mine, and was very instrumental in were the chief deputy whip. There were did not expect this to happen, and I am getting me elected whip. just four of us in there Judy, my wife; overwhelmed by the wonderful tributes b 1315 Jerry, Kathy and then Sarah. I guess and comments of my colleagues. that is five, and he was so instrumental I want to thank the gentleman from So I thank them all and I look for- ward to a final year of service with in our battles on Central America and Indiana (Mr. SOUDER) and the gen- them here. We are going to do wonder- disarmament issues and you name it, tleman from Nebraska (Mr. BEREUTER) he is there. He is a great resource for for their comments, and for spending ful things for our country together. I take this floor tonight to express this institution, and I wish Jerry all the time that they have here on the the best in his endeavors. floor throughout this hour-and-a-half, 2 my appreciation to people who have made it possible for me to be the whip Sarah Dufendach and Kathy Gille hours. have been with me the longest of the Mr. Speaker, I came to the floor this of my party and be a leader in my party, and that is my staff. They are an group. They worked on my first cam- afternoon, or actually I came this paign 25 years ago. Sarah and Kathy morning, but it is afternoon now, to extraordinary group of people, some of whom I will miss dearly. Although I and I, we all kind of grew up on the pay tribute to my staff. east side of Detroit, and as I said, they Before I do that, I want to express am sure we will be in contact with each other over the years and the months as both worked on my first campaign, and my appreciation to all the Members Kathy came to work with me about 20 who came to this well and spoke so lov- they go by, but some of them are leav- ing now, and they have been part of my years ago, seems like 22, but she was in ingly and so wonderfully concerning at the very beginning and she has been my service here. whip staff, and I want to express my thoughts and feelings to them today. an enormous, wise consult to me. She It means a great deal to me to, num- has great instincts. She has great hu- ber one, have such wonderful friend- Bridget Andrews will be coming over to the Rayburn staff with me for the manitarian instincts. She has great po- ships of people that I admire and re- litical wisdom and caring, and I am spect, and to have them publicly ex- next year and she is just a bright, thoughtful, caring, quiet but smart just going to miss her very, very much, press their feelings and their thoughts. but I know she is looking forward to woman, and I am really honored to It was quite an emotional and heartfelt the day when she can have a little bit have her and look forward to working experience and well received, I might of rest, as we all are, and I wish her and with her. say, and I thank them for it. Doug much happiness. I know that it Brian Taylor, who is here on the The gentlewoman from California will be there in abundance for them. floor as well, Brian has been with us a (Ms. PELOSI), of course, is going to be They put together well in their lives short time, but he has done a great, our next whip and a great leader of our the different pieces that make life so great job, and he has got all the abili- country, and she already is, but more profound and wonderful. The spiritual, ties to be a great legislative assistant greatness awaits her; and my friend, the physical, the emotional, the edu- in this institution, and I wish him all the gentleman from California (Mr. cational, all those pieces they do very, the best. He has had the obligation of GEORGE MILLER), who, with me, has very well, and she does extremely well. had so many battles over so many answering the phone when someone Kathy traveled to Central America. years on education, labor issues, Cen- calls to find out what is going on and She has been at all the battles that we tral America; we go back a long time, he does a great job. He knows how this have done over the years and the Viet- and he is one of the best. place works now. He is a wonderful per- nams veterans stuff, all the trade Of course, there is the gentlewoman son. issues, worked on the Committee on from California (Ms. WOOLSEY), who I Then Kim Kovach, who I will dearly Rules, as did Jerry, and she is just a have come to admire and respect, and miss. She started off not too long ago very special person, and I thank her is about as genuine and as real and as with us, a couple of years ago, several from the bottom of my heart for her committed to people as we can find in years ago, and she has done everything service. this place; and the gentleman from in the office, and she did our trade stuff Then Sarah, who with Kathy, worked Ohio (Mr. BROWN), who was here and for us on fast track. She has just pro- in that first campaign, has been with has now left, who will commence the gressed in such a wonderful fashion. me in the office now for 25 years. She leadership on the trade issue. He is al- She is caring, she is decent. She is started in Michigan. She lived in the ready a great leader in it, but he will going back to Pittsburgh. She got mar- same community I did. She has worked be even more so in the days and weeks ried. She is a lovely person, and who- in social services her whole life, and I and months ahead. ever gets her in employment in Pitts- consider this part of that. She has got Thanks to the gentleman from Texas burgh is going to be very, very fortu- enormous amounts of energy and opti- (Mr. EDWARDS) and the chief deputy nate. I wish Kim all the best in her en- mism and can-do-it-iveness and is a whip, the gentleman from California deavors. deeply caring person and was the ad- (Mr. FARR); the gentlewoman from I also want to take this opportunity ministrative and political part of our Connecticut (Ms. DELAURO), who spoke to thank Howard Moon, who came from operation that was so very, very impor- with such eloquence and love; the gen- the gentleman from California’s (Mr. tant. She did a great, great job for tlewoman from Ohio (Ms. KAPTUR); the MATSUI) staff. Howard is one of our many, many years. gentleman from Vermont (Mr. SAND- floor people here, and he will continue She is going on to wonderful things ERS), who always proves that I am bi- on in that capacity in the next session working for an organization called the partisan; the gentleman from Oregon of this Congress. He and Kristen are Vietnam Veterans of America Founda- (Mr. WU); the gentleman from Maine very special people, smart, hard- tion, which was an offshoot of the (Mr. ALLEN); the gentlewoman from working, thoughtful, competent, all original Vietnam Veterans of America. Nevada (Ms. CARSON); the gentleman the things someone would want in a I guess it really was not an offshoot, from Guam (Mr. UNDERWOOD), who is staff person, and I wish Howard all the but it is Bobby Muller who was instru- going to be the next Governor of Guam; best and I will miss him. We will see mental in forming both of those orga- the gentleman from Texas (Mr. GREEN); him, though, on the floor. So I guess I nizations, one which is now a national

VerDate 10-DEC-2001 00:06 Dec 22, 2001 Jkt 099060 PO 00000 Frm 00035 Fmt 7634 Sfmt 0634 E:\CR\FM\K20DE7.052 pfrm02 PsN: H20PT1 H10948 CONGRESSIONAL RECORD — HOUSE December 20, 2001 veterans organization. She is going to LEGISLATION TO BE CONSIDERED Since it would be politically impos- go work over there, and they do stuff IN SECOND SESSION OF 107TH sible to lower the work adjuster levels like land mines. CONGRESS for health care providers in urban They are the folks that got the Nobel The SPEAKER pro tempore. Under a areas, the adjustment upward to the Peace Prize for the work they did on previous order of the House, the gen- 1.000 floor would be enacted without re- land mine issues around the world. So tleman from Nebraska (Mr. BEREUTER) gard to budget neutrality agreement in it is a good place for Sarah because is recognized for 5 minutes. the present law, thereby requiring Con- when she puts her heart and soul into Mr. BEREUTER. Mr. Speaker, today gress to change law to authorize an in- something, she works hard at it, and I have introduced four bills for consid- crease in program expenditures. there is nothing that could be more im- eration during the next year and I While Congress has attempted to correct portant than doing that kind of work, want to call them at least briefly to the inequities for hospitals, it has not ad- making sure we demilitarize our land the attention of the House for the dressed parallel problems with the physician so that our loved ones around the world Members and staff who will be watch- component of our country’s rural health infra- do not lose their lives and their limbs. ing or reading the CONGRESSIONAL structure. There will be other things I am sure RECORD. The Benefits Improvement and Protection that she will be doing over there but The first of them is entitled the Act of 2000 addressed inadequate payment she is a great person, and I wish her all Lewis and Clark Voyage of Scientific for Medicare+Choice organizations, and took the best in her endeavors, and I thank Discovery Act, and it really is a com- steps to stabilize and improve rural hospital her for her service. prehensive effort to foster the better payment. Nothing substantive in the legisla- management of the biological and tion, however, addressed the underlying Another person who I should mention physical health of the Missouri River. issues of inadequate reimbursement of the is Chris Cook, who was with me for 25 The second and third bills relate to costs of providing physician services under years as well and left just recently. I Afghanistan and Central Asian repub- Medicare Part B. have four people that were with me vir- lics and the ability and assistance and According to the Centers for Medicare and tually the whole time, Kathy, Sarah, authorization for that part of the world Medicaid Services, ‘‘physician work’’ is the Ed Bruley, who is still there and Chris to produce food sufficient to feed them- amount of time, skill and intensity a physician Cook, Christine Cook. And Christine selves, at least on a sustainable or sub- puts into a patient visit. Physicians and other left recently from the Michigan office sistence basis. health care providers in rural areas put in as and those now kind of form the team The second of the bills relates to a much or even more time, skill and intensity that we have operated with for two and multi-lateral approach we would par- into a patient visit as do physicians in urban a half decades. And I am going to miss ticipate through the Treasury Depart- areas. Yet, rural physicians are paid less for Christine. I will see her. She is busy ment with cooperation and assistance their work under the Medicare program than now as a grandma. We were all young with the State Department. It has 15 those who practice in urban areas! This is not when we started out in this business, bipartisan cosponsors already, and it only unfair, but discriminatory against rural but we have other responsibilities now would utilize a trust fund with the fi- areas! in our lives. And she is handling that duciary responsibility placed in the The amount Medicare spends on its bene- with great grace and she is a gracious, World Bank. ficiaries varies substantially across the coun- lovely woman and I miss her already. The third is a bilateral authorization try, far more than can be accounted for by dif- Then let me finally say that my wife, program involving the State and ferences in the cost of living or differences in Judy, who worked in our office, in the USAID, and I will come back to those health status. Since beneficiaries and others whip’s office, chief deputy whip’s office two bills briefly. pay into the program on the basis of income and then in the majority whip’s office The fourth bill is a Rural Equity and wages and beneficiaries pay the same and in the minority whip’s office was Payment Index Reform Act, and I had premium for Part B services, the geographic an enormous piece in making things a chance to briefly mention that in a 1 disparity results in substantial cross-subsidies work and is the central piece of my minute address several hours ago. This from people living in low payment states with life. And she was just fabulous in doing bill will address a significant differen- conservative practice styles or beneficiary all the wonderful things she does. Car- tial and reimbursement levels to urban preferences to people living in higher payment ing, loving and advocating and fighting and rural health care providers. The states with aggressive practice styles or bene- for the things that are important to formulas used by Medicare programs to ficiary preferences. Physician work should be her, socioeconomic justice, racial jus- reimburse health care providers for valued equally, irrespective of the geographic tice. So she is a beacon of light for me beneficiaries’ medical care, are not ac- location of the physician. and for many people, and I want her to curately measuring the cost of the pro- The work geographic practice costs index know that. I look forward to marching viding services and are reimbursing for Nebraska is currently 0.949. According to through life with her. physicians and other health care pro- this Member’s calculations, establishing a floor To all the Hill staff who I had the viders in a manner that disadvantages of 1.000 would translate into a $7,562,772 an- pleasure to work with, thank you for rural providers and, therefore, rural nual increase in Medicare payments to Ne- your cooperation and for your support. citizens. braska physicians. We have information of the To run a whip shop is not easy. You do Many rural communities have had current index levels for other states that we not just need your staff. There is a lot great difficulty retaining physicians can make available to interested Members. of people that are involved and a lot of and other skilled health care profes- Mr. Speaker, this Member urges his col- energy and a lot of heart and soul gets sionals. Recruitment difficulties for leagues to support the Rural Equity Payment poured into these issues. And, I hope primary and tertiary care remain more Index Reform Act. over the next year, to thank you all in- severe in areas with lower costs of liv- Mr. Speaker, with respect to the Af- dividually and to give you my best ing indices. It makes little sense, ghanistan bills, the two that I have in- wishes in your careers. therefore, to pay physicians less in troduced, I would say it is important lower costs of living areas when these that Members understand that as Af- Mr. Speaker, you have been very gen- areas usually have the physician short- ghanistan moves towards developing a erous. This has been a long 5 minutes, ages. new government, it is important for and I want to thank you for your kind- The Rural Equity Payment Index Re- the U.S. to provide incentives for the ness this afternoon. I want to wish my form Act will lessen the disparity people of Afghanistan to create a new colleagues a very happy holiday sea- which currently exists between urban national government which will move son; a happy Hanukkah which has and rural areas. Specifically, the legis- towards increased stability in the re- passed; a merry Christmas and a spir- lation would guarantee that we would gion. itual Kwanzaa and a Ramadan Koran have a gradual phase-in of a floor of I would like to thank the distin- for those who just finished their holy 1.000 for the Medicare physician work guished Members from both sides of the season. adjuster, thereby gradually raising all aisle who have agreed to serve as origi- We look forward to a good session the localities with a work adjuster below nal co-sponsors of the measure, and, in next part of this 107th Congress. 1.000 to that level. particular, the distinguished

VerDate 10-DEC-2001 00:06 Dec 22, 2001 Jkt 099060 PO 00000 Frm 00036 Fmt 7634 Sfmt 0634 E:\CR\FM\K20DE7.054 pfrm02 PsN: H20PT1 December 20, 2001 CONGRESSIONAL RECORD — HOUSE H10949 gentlelady from North Carolina (Mrs. building, Afghanistan would not be eli- Mr. PALLONE. Mr. Speaker, the U.S. CLAYTON). Her commitment to assist- gible for programming until the Sec- Government has repeatedly committed ant people in the U.S. and the rest of retary of State certifies that the people to a trustee relationship with the the world feed themselves through the of Afghanistan have made substantial American Indian nations. Defined by Farmer-to-Farmer program and other progress towards creating a national treaties, statutes, and interpreted by technical education programs will government which meets four criteria: the courts, the trust relationship re- truly be missed in this Body during the one, has diverse ethnic and religious quires the Federal Government to exer- next Congress. representation; two, does not sponsor cise the highest degree of care with Mr. Speaker a very special note of terrorism or harbor terrorists; three, tribal and Indian lands and resources. appreciation is extended to Dr. Fred demonstrates a strong commitment to At first, the Federal trust responsi- Starr of the School for Advanced Inter- eliminating poppy production use for bility served to protect tribal lands and national Studies of Johns Hopkins Uni- opium production; and, four, meets tribal communities from intrusion. versity for the concepts that undergird internationally recognized human However, in a push to acquire tribal this legislation and for his generous rights standards. lands and turn Indians into farmers, amount of time and advice to this Mr. Speaker, helping the people in the Federal Government imposed res- member and my staff Alicia O’Donnell, the region feed themselves is not only ervation allotment programs pursuant as we drafted this legislation. The dis- benefits which we are creating for to the General Allotment Act of 1887. tinguished Dr. Starr first explained his them, it is important to us and to Under these policies, the selling and views and proposal at an Aspen insti- other countries. It would provide an leasing of allotted lands and inherited tute breakfast sponsored by the distin- opportunity to build good will in a re- interests became primary functions of guished former senator from Iowa, gion which has been neglected by U.S. the Bureau of Indian Affairs. Tribes Rich Clark. policymakers and U.S. assistance pro- lost 90 million acres and much of the grams. We cannot leave a vacuum b 1330 remaining 54 million acres was opened there like the one that was left behind to non-Indian use by lease. In sum, the One important incentive which the after the Soviets were expelled from Federal Government took the trust re- U.S. can extend is assistance to address Afghanistan. one of its most immediate needs, the U.S. leadership, in creating a long- sponsibility for Indian land upon itself need to rebuild Afghanistan’s capa- term trust fund, can be a critical step in order to gain the benefit of vast trib- bility to feed itself. towards rebuilding confidence in the al lands and resources that were guar- Indeed, nearly all of the indigenous USA. When funds from public and pri- anteed by treaty, executive order, and tools for food production and rural de- vate sources are gathered and distrib- agreements for exclusive use by the velopment in the Afghanistan area uted through a multilateral mecha- tribes. have been destroyed. The people of Af- nism, it becomes much more difficult It is widely known, Mr. Speaker, that ghanistan, necessarily, have eaten for governments in the region to dis- the BIA grossly mismanaged and their seed stocks and most have miss the projects as ephemeral U.S. squandered billions of dollars worth of slaughtered all of their breeding live- foreign policy initiatives. Additionally, resources that should have gone to the stock to meet their immediate food re- providing programming funds for the benefit of often impoverished American quirements. Additionally, over 20 years Central Asian Republics and not solely Indians. Today, the Secretary of the of civil war and political unrest in Af- to Afghanistan, which will certainly Interior is faced by a mandate from ghanistan have resulted in the destruc- become the recipient of massive bilat- Congress to clean up the accounting tion of the country’s limited basic irri- eral and multilateral human assistance and management of the Indian trust gation systems. programs, will further demonstrate the funds, and by a lawsuit alleging a great Unfortunately, the food production U.S. commitment to the entire region. failure by the Secretary’s trust respon- capabilities in the mountainous re- Mr. Speaker, I hope my colleagues sibility for Indian lands. In response, gions of Turkmenistan, Uzbekistan, will look at this legislation. I think it the Secretary has proposed a plan to Tajikistan, Kyrgyzstan, and Pakistan begins the process of seeking a long- create a new Bureau of Indian Trust have reached abject levels, too, thus re- term solution to the region’s dire food Asset Management and remove the sults in a regional crisis. production challenges; and, further- trust functions from the Bureau of In- Mr. Speaker, the Afghanistan and more, it is a real incentive for them to dian Affairs. Central Asia Republics Sustainable move the kind of government which Mr. Speaker, in my opinion, this pro- Food Production Trust Fund Act that I will bring peace and stability to the re- have introduced directs the Secretary posal will profoundly affect the BIA’s gion. management of 54 million acres of In- of the Treasury to enter into negotia- Mr. Speaker, this Member would note that tions for the creation of a multilateral dian lands, the administration of trust the Afghanistan and Central Asian Republics funds derived from those lands, and global trust fund to address the food Sustainable Food Production Trust Fund is not production crisis in Afghanistan and nearly every aspect of economic devel- intended to replace similar bilateral projects opment, agriculture, and land manage- the surrounding Central Asian Repub- which USAID has begun to conduct in the re- lics. Through the trust fund, non- ment within Indian country. gion. Furthermore, the trust fund is not in- I am greatly concerned that this plan governmental organizations, working tended to supplant the very necessary emer- in conjunction with local and regional is repeating the failure of the many gency food assistance programs in Afghani- trust reform efforts of the past. Re- entities, would receive grants to con- stan and the surrounding Central Asian Re- duct food production in rural develop- cently, 193 Indian tribes unanimously publics. adopted a resolution opposing this re- ment projects, including microenter- Mr. Speaker, it is critical that the U.S. and organization and transfer of the re- prise loan programs, in Afghanistan the rest of the global community begin to seek sponsibilities of the BIA. I strongly be- and in the impoverished mountainous long-term solutions to the region’s dire food lieve that this reorganization effort regions of the countries I previously production challenges. Through the creation of cannot go forward until the Depart- mentioned. the Afghanistan and Central Asian Republics ment consults with Indian tribes in the Upon the creation of the trust fund, Sustainable Food Production Trust Fund, the the NGOs would be immediately eligi- U.S. can take an important step toward that development of a business processes ble to receive grants to execute end. plan for trust reform, a clear plan for performing the basic trust functions of projects in the countries of the Central f Asian Republics. This is a model laid accounting, collections, recordkeeping out for us by Dr. Fred Starr, a very dis- INDIAN TRUST MANAGEMENT inspections enforcement and resource tinguished member of SAIS at Johns REFORM management. The plan must include Hopkins University, in a breakfast for The SPEAKER pro tempore (Mr. policies, procedures and controls. the Aspen Institute held in this Capitol SIMPSON). Under a previous order of the The fundamental and consistent crit- building several months ago. House, the gentleman from New Jersey icism of the Department’s trust reform In order to provide the important in- (Mr. PALLONE) is recognized for 5 min- efforts over the last decade has been centive during critical stages of state- utes. the failure to develop a plan for these

VerDate 10-DEC-2001 00:06 Dec 22, 2001 Jkt 099060 PO 00000 Frm 00037 Fmt 7634 Sfmt 0634 E:\CR\FM\A20DE7.044 pfrm02 PsN: H20PT1 H10950 CONGRESSIONAL RECORD — HOUSE December 20, 2001 business operations of trust manage- strip the costs of doing it right. Con- women as they fight against discrimi- ment. Instead, the DOI has a well-docu- gress must fund trust reform, and the nation, and this treaty has led to sub- mented record of making short-term IIM beneficiaries and tribes should not stantial improvements for women’s cosmetic changes in response to court- bear the burden of paying to fix the lives in countries including Japan, imposed deadlines or congressional in- trust system. We therefore oppose the Brazil, Sri Lanka, and Zambia. In fact, quiries. Department’s proposed reprogramming when Brazil redrafted its constitution, Mr. Speaker, it is notable that this of $300 million within the Fiscal 2002 they used CEDAW as a framework for criticism, a lack of structural founda- budget from the BIA budget to fund the their human rights for women. The tion, is exactly the same as has been proposed BITAM, and any other pro- Brazilian constitution now contains leveled against the Department’s de- posal to remove funds from the BIA for provisions on gender equality, gender- velopment of the Trust Asset and Ac- this purpose. based violence, equality of rights with- counting Management System. All IV. The Secretary of Interior should in marriage, family planning, and em- tribal leaders strongly support trust come forward in an honest and forth- ployment, paralleling those contained reform and want to work construc- right way to discuss ways of settling on in CEDAW. tively with the Department and with historic account balances. If she can- To date, 168 countries have ratified Congress to ensure sound management not do this, then Congress must ad- CEDAW. However, the United States is of tribal assets. In fact, it is the tribes dress this issue substantively. not one of those countries. In fact, the that have the greatest interest in en- V. Do no harm. Many tribes and BIA United States is the only industrialized suring that tribal assets and resources field offices have been successful in es- nation that has not ratified CEDAW, a are properly managed. tablishing sound trust management for distinction that places us in the com- In this spirit, I will submit for the their lands pursuant to the tribal self- pany of North Korea, Iran, and Afghan- RECORD the following principles of the determination policy. These successful istan. The decision to abandon this em- National Congress of American Indi- systems should not be harmed or modi- barrassing distinction is long overdue. ans, which should guide the Depart- fied by the trust reform efforts without The last 3 months have focused on re- ment of the Interior in its trust reform tribal consent. covering from the tragic events of Sep- efforts. Secretary Norton clearly needs VI. Successful development and re- tember 11 and fighting against ter- help in attending to the concerns of source management in Indian Country rorism. And as a part of our response to Native Americans, and I would hope are linked to Indian control. The fu- the terrorist attacks, the U.S. has these principles would be taken into ture of trust management includes in- overthrown the Taliban, a government consideration by her. creased protection and tribal control that stripped Afghan women of all free- I. Put first things first. Creating a over lands and resources, and a federal doms, dignity, and respect. Now the new agency does not create trust re- system that provides technical assist- United States will play an important form, and we unequivocally oppose this ance and trust oversight on resource role in rebuilding the Afghan Govern- proposal as currently framed. Tribal management in a flexible arrangement ment. Critical to building this new de- leadership urges the Secretary to stop that is driven by self determination mocracy will be the inclusion and ac- the BITAM reorganization effort until through the special circumstances, ceptance of Afghan women. there has been an opportunity to ac- legal and treaty rights of each tribe But in our quest to help Afghanistan tively engage and consult with tribes and reservation. Different regions in rebuild, we are presented with a shame- in developing an alternative plan for Indian Country and their specialization ful irony. While we are trying to teach the business processes of trust manage- in grazing, timber, oil & gas, commer- the Afghani people that women must ment in an open and consensus-based cial real estate, agriculture, fisheries, be an equal part of a post-Taliban de- process. Once the Department, working water, etc., will all require different mocracy, we contradict ourselves by with tribes, has a clear definition of systems that must reflect the unique refusing to ratify the one international the tasks that must be accomplished, needs of each. treaty that ensures the rights of all then any staff reorganization should be VII. The survival of tribal cultures women. If we truly want to be regarded based on this business processes plan. and traditions is dependent upon the as a world leader and champion of II. Tribes can help solve this prob- continuance of tribal lands and re- human rights, our country must ratify lem, but the Secretary must consult sources as durable means to live and be this treaty. Women around the world and collaborate with the tribal leader- Indian. One role of the trustee is to are depending on the United States to ship on a government-to-government, protect the long-term viability of trib- show support for CEDAW, because sovereign-to-sovereign basis. Announce al lands and resources and ensure that United States’ support will strengthen and defend is not consultation. The the actions of the trustee are con- CEDAW’s purpose and enhance its Secretary and the tribes should agree sistent with tribal control of the use credibility. that the upcoming regional meetings and development of Indian lands. During my 9 years in Congress, the ratification of this treaty has been a should be to consult on the scope of the f issues to be addressed. The scoping top priority of mine. Although it is the meetings planned at present are too ANNIVERSARY OF CEDAW purview of the other body to ratify a fast and too few, and should be ex- The SPEAKER pro tempore. Under a U.N. treaty, 90 bipartisan Members of tended to cover all regions, with an ex- previous order of the House, the gentle- the House of Representatives have tended timeline. A Tribal Leaders Task woman from California (Ms. WOOLSEY) signed a House Resolution asking the Force on Trust Reform should be cre- is recognized for 5 minutes. Senate to take up this issue and ratify ated and funded, and consultation Ms. WOOLSEY. Mr. Speaker, this CEDAW. Please join this effort to con- should include the IIM account holders. past Tuesday, December 18, marked the vince the administration and the other Consultation must continue through- 22nd anniversary of the United Na- body that the time has come for the out the trust reform effort, and the dis- tions’ adoption of the Convention on United States to join 168 other nations cussions must be marked by some fun- the Elimination of All Forms of Dis- who have committed themselves to damental ground rules. The tribes in- crimination Against Women, otherwise safeguarding basic human rights and sist that the Department agree to deal known as CEDAW. Adopted by the U.N. ending gender discrimination and rati- in good faith, avoid self-dealing, and General Assembly in 1979, CEDAW es- fying CEDAW. commit to full disclosure of relevant tablished a universal definition of dis- f and material information (including crimination against women and pro- The SPEAKER pro tempore. Under a that relating to known failures and vides international standards to dis- previous order of the House, the gentle- losses). courage sex-based discrimination. woman from the District of Columbia III. In the past twelve years, Interior These standards encourage equality in (Ms. NORTON) is recognized for 5 min- has paid more than a billion dollars in education, health care, employment, utes. judgments and settlements for its fail- and all other areas of public life. (Ms. NORTON addressed the House. ures to protect the trust assets. The This comprehensive United Nations Her remarks will appear hereafter in costs of continued failure will far out- treaty serves as a powerful tool for all the Extensions of Remarks.)

VerDate 10-DEC-2001 00:06 Dec 22, 2001 Jkt 099060 PO 00000 Frm 00038 Fmt 7634 Sfmt 0634 E:\CR\FM\K20DE7.058 pfrm02 PsN: H20PT1 December 20, 2001 CONGRESSIONAL RECORD — HOUSE H10951 The SPEAKER pro tempore. Under a and commitment and dedication to giv- morally vindicate our effort in Afghan- previous order of the House, the gen- ing the people of Afghanistan a better istan was the obvious joy of so many tleman from Ohio (Mr. BROWN) is rec- life, as we should, to helping them get people in Afghanistan that we helped ognized for 5 minutes. rid of that terrible regime, then I do rid them of this barbarous repressive (Mr. BROWN of Ohio addressed the not think we have earned the right to regime. House. His remarks will appear here- go do that somewhere else. Saddam Hussein is not a lot better after in the Extensions of Remarks.) than the Taliban, but I do not see in b 1345 f Iraq the kind of opposition that would I do not think that we can simply go allow us to do the same thing. So while NO EXPRESSION OF SUPPORT IN from country and oppose destruction, to continue to support the sanctions CONGRESS FOR WAR IN IRAQ even when it is morally justified to go and I continue to say we should work The SPEAKER pro tempore. Under a after some bad people, without living with opposition within Iran, if possible, previous order of the House, the gen- up to the second part that of commit- to launch a military assault on Iraq tleman from Massachusetts (Mr. ment. comparable to what we do in Afghani- FRANK) is recognized for 5 minutes. Secondly, an attack on Iraq, unlike stan would be counterproductive. I Mr. FRANK. Mr. Speaker, along with the war in Afghanistan, would be al- hope it will not be done. Clearly, the a large majority of the House, I voted most universally opposed by a variety resolution we voted offers no support for a resolution that reiterated our op- of others. The Bush administration has for that. learned that going it alone is not the position to the acquisition by Saddam f best strategy. I am glad the Bush ad- Hussein of Iraq of weapons of mass de- The SPEAKER pro tempore (Mr. ministration has abandoned the kind of struction. But I am concerned that SIMPSON). Under a previous order of the unilateralism that unfortunately some might try, quite inaccurately, to House, the gentleman from American marked its early months. But if we take that large vote repeating our con- Samoa (Mr. FALEOMAVAEGA) is recog- now attack Iraq, we would be back in demnation of Saddam Hussein and our nized for 5 minutes. insistence he comply with U.N. resolu- that situation. In fact, any hope of fur- (Mr. FALEOMAVAEGA addressed the tions regarding these weapons, that ther cooperation with Arab regimes in House. His remarks will appear here- some might mistake this as an expres- getting intelligence, in prosecuting after in the Extensions of Remarks.) sion of support for a war in Iraq. terrorists and continuing to go after al f First of all, we should be very clear: Qaeda would be discouraged. there is no legislation, no resolution Mr. Speaker, I am no fan of the re- MORATORIUM CALLED FOR ON that has passed this House, that ex- gime in Saudi Arabia which is lacking VETERAN PRESCRIPTION DRUG presses support for war in Iraq. The in so many respects; I have become in- CO-PAYS post-September 11 resolution was ex- creasing disenchanted with Mubarak in The SPEAKER pro tempore. Under a plicitly limited to involvement in the Egypt, but they, at this point, seem to previous order of the House, the gen- attack on the World Trade Center. And me better than what we would get as tleman from Ohio (Mr. STRICKLAND) is to date, no one has produced evidence, an alternative if we were to launch an recognized for 5 minutes. as reprehensible as Saddam Hussein is, attack on Iraq that could destabilize Mr. STRICKLAND. Mr. Speaker, I as despicable as his regime, that he was those countries. And as King Abdullah, may be the last speaker in this Cham- in any significant way involved in that. the King of Jordan, in the tradition of ber of this particular session of the Many of us, in fact many of us who his father, seems to be a responsible in- House of Representatives. I rise today voted for the resolution, signed a letter dividual trying to do well, I do not to say when it comes to the way we to the President reiterating we do not want to see those efforts undercut. treat our veterans in this country, talk believe it would be appropriate to com- So it would be counterproductive in is cheap, but actions speak louder than mit America to a major military ac- the war against terrorism to go after words. Why do I say that? tion in Iraq or anywhere else in the Iraq. I would love to see Saddam Hus- Mr. Speaker, I have in my hands this world without a congressional vote. sein out of power. He is a vicious and afternoon a document from the Depart- And I would be, at this point, voting brutal man, but to attack him mili- ment of Veterans Affairs entitled, ‘‘Im- against that. tarily at this point, engendering the plementation of Medication Co-pay- We did a very good job in Afghani- opposition this would engender in the ment Changes.’’ It is a document that stan. The American military made us Muslim world, would be counter- details the changes that will take place proud. And, by the way, that is the productive to our fight against ter- in the level of co-payment made avail- American military that President Bush rorism. able to veterans who get their prescrip- inherited from President Clinton. All Indeed, as a strong supporter of the tion medications at the VA hospitals. during the campaign of 2000 candidates legitimate right of Israel for self de- What we are proposing is outrageous in Bush and CHENEY denigrated the Amer- fense, which is now under attack from my judgment. ican military, claimed inaccurately the most irresponsible elements in the Currently, most veterans who go to that Clinton had somehow left it impo- Arab world, people should understand, VA hospitals and receive their medica- tent. All of a sudden it got very good in President Bush never said that he was tions as an outpatient pay a $2 co-pay a hurry, because that very military for a Palestinian state until after Sep- per prescription. On February 4, ac- that President Bush inherited from tember 11. The political need to show cording to this document, that co-pay President Clinton showed a great ca- some connection to the Muslim world will be increased from $2 a prescription pacity in Afghanistan. moved him in that direction. I fear to $7 a prescription, a whooping 250 But as good as they were and as care- greatly that an attack on Iraq, with all percent increase. An unacceptable in- ful as they were, innocent lives were of the negative consequences that crease. Why is this so outrageous? It is lost, property was destroyed, the econ- would have in the Muslim world would, outrageous because this House has re- omy, already in tough shape, was dis- in fact, lessen rather than strengthen cently passed a $15 billion bailout for rupted, food distribution was inhibited. America’s support for Israel’s legiti- the huge airline companies, $15 billion. We had a moral right and a moral obli- mate needs. I fear there would be a This House has recently passed a bill gation to go into Afghanistan. But hav- tendency to trade-off a little bit of that that would have provided $24 billion in ing done that, having unleashed signifi- support for Israel at a time of great tax rebates going all of the way back cant military power in that poor coun- crisis because of this. to 1986, giving profitable companies a try, for good moral reasons, I think it Finally, they are not analogous. Not give-back of all of the taxes they had is now an equal moral obligation to only do we not have Saddam Hussein paid under the alternative minimum show that we can work just as hard to not having attacked us the way the Af- tax since 1986, estimated to be a $24 bil- help rebuild the country, to help feed ghan-supported Taliban allowed al lion give-back. And yet at the same people, and to help reconstruct it. Qaeda to do it, we do not have the time, we are in the process of increas- In the first place, I would say this: same situation. There is no Northern ing the co-pay for veterans’ medicines until we have shown an equal ability Alliance. One of the things that helps from $2 to $7.

VerDate 10-DEC-2001 02:11 Dec 22, 2001 Jkt 099060 PO 00000 Frm 00039 Fmt 7634 Sfmt 0634 E:\CR\FM\K20DE7.061 pfrm02 PsN: H20PT1 H10952 CONGRESSIONAL RECORD — HOUSE December 20, 2001 Mr. Speaker, I serve a veterans hos- ments of the first session of the 107th ing. States and school districts will pital in southern Ohio, the Chillicothe Congress. I am proud of this House of have more freedom to decide the most VA Hospital. I have been told by ad- Representatives and how it has risen to effective way to spend Federal dollars. ministration there that the average the challenges of this very turbulent And they will be held accountable for veteran who gets prescription drugs at year. their decisions. Federal funds will be that facility will get 10 or more pre- We started this session after the clos- put in the programs that have the most scriptions per month. If we take a $7 est Presidential election in our Na- positive impact on children, programs, co-pay and multiply that by 10, it is tion’s history, with an evenly divided for instance, that make sure that all $70, a sizable amount of money for a Senate and a closely divided House. We our kids are reading by the third grade. veteran living on a fixed income. These conclude it with an admirable track Parents will be empowered with infor- veterans frequently get not 1-month record of accomplishments in the face mation about the quality of their chil- supply, but a 3-month supply at a time. of a Nation that has utterly changed in dren’s schools and their teachers so If we take $70 times 3, it is $210. Why is a time of war. The themes we focused that parents can make the best deci- it that we talk so eloquently in this on at the beginning—economic secu- sions for their kids’ education. And House about our concern for our mili- rity, retirement security, national se- parents with children in failing schools tary, we honor our veterans, and yet curity, and education—still occupy our will be able to use Federal funds to pay when it comes to taking action, we pe- attention at the end. for private, religious, or community- nalize them at the same time we are We started this session debating eco- based after-school tutoring. willing to give huge, huge tax cuts to nomic security. Should we take the Last week, the House passed the con- profitable corporations, many of them steps necessary to jump-start our econ- ference report and the Senate com- multi-national corporations. omy? The Congress, amid great debate, pleted its work and the President will A 250 percent increase on our vet- considered the President’s campaign sign this legislation in early January. erans for medicines they need to stay pledge to return $1.35 trillion of the From the beginning, we planned on tax healthy or maybe even to stay alive, taxpayers’ money to the taxpayers relief and educational reform. But the and we are doing it at a time when we themselves. We started in the House Congress showed it was able to respond are passing out money up here like with the principle that it is wrong to to an immediate crisis. drunken sailors. We have passed so penalize married people with a higher On September 11, the American peo- many give-backs and pork barrel tax rate. We passed legislation to get ple were deliberately and viciously at- spending bills in this session of this rid of the marriage penalty. We be- tacked by terrorists who hijacked four House of Representatives, and yet we lieved it was wrong to tax people when airplanes, crashing two of them into are penalizing our veterans. It is no they die, so we got rid of the death tax. the World Trade Towers, one of them wonder that veterans across this coun- We believed that all Americans de- into the Pentagon. The fourth crashed try have a right to say when it comes served some tax relief, so we passed into a field in Pennsylvania after a he- to the actions of this House, talk is broad, across-the-board tax relief, roic struggle by crew and passengers cheap, but actions speak louder than which included a refund check for all that led to the crash of that airplane. words. Americans who pay income taxes. Many of us believe that the terrorists On February 4 when veterans go to We believed that families needed help planned to crash that plane into this our VA facilities to get their medi- to raise their kids and to send their very Capitol of the United States of cines, and they have been used to pay kids to school. We doubled the child America. Those people who stopped $2 per prescription and they are asked tax credit from $500 to $1,000 to give those terrorists from their dastardly to pay $7 for that prescription, I hope parents more money at home to take deed did a great service not only to the they rebel. I hope they let those of us care of diapers and school supplies and people who work here, the people who in this Chamber know how they feel braces and all the other things that serve here, but certainly to the Amer- about this outrageous action. kids need. We also passed tax-free edu- ican people themselves. We hold those Mr. Speaker, I have introduced a bill cation savings accounts to encourage deeds in the greatest and highest honor to place a 5-year moratorium on any parents to save money for their chil- that I think this country can bestow. This disaster changed the character increase for veterans’ prescription dren’s education. To improve retire- of Congress and the face of this Nation. drugs. My bill is H.R. 2820. I currently ment security, we included monu- I am proud of how this House has re- have 42 cosponsors. I am hopeful that mental IRA/401(k) reform so that peo- acted. From the moment we sang ‘‘God every Member of this Chamber will ple could save more money tax-free for Bless America’’ on the steps of the Cap- choose to cosponsor this legislation, their retirement. itol building, we sent the message to and as soon as we get back here after Tax relief is the best remedy for a the world that we are united in fight- the first of the year, we will pass this slowing economy, and there is no ques- ing this new war on terrorism. We im- legislation so that we will not penalize tion in my mind that we did the right mediately got to work on a series of our veterans and require them to pay thing by passing the tax relief package initiatives to go after these murderers more than they are currently paying early enough to soften what could have and safeguard our Nation from future for their needed prescription medica- been an even greater economic blow to tions. attacks. our country. The President signed this Three days after the attack, Congress f legislation on June 7. He kept his passed a bill providing $40 billion to The SPEAKER pro tempore. Under a promise to the American people, and fund September 11 recovery efforts and previous order of the House, the gentle- we kept our commitment to economic to combat terrorism. On the same day, woman from Texas (Ms. JACKSON-LEE) security. But tax relief was not our we passed a resolution authorizing the is recognized for 5 minutes. only accomplishment in this historic President to use force against those (Ms. JACKSON-LEE addressed the session of this Congress. who played a role in these attacks. House. Her remarks will appear here- The President promised to work on a In the days that followed, we passed after in the Extensions of Remarks.) bipartisan basis to reform education, legislation vitally important to fight- f to improve our education system so ing this new war and in protecting b 1400 that no child is left behind. As a former America from further attack: teacher and coach, I understand how An airline recovery bill to help those ACCOMPLISHMENTS OF FIRST important education is to our Nation’s airlines struggling after the attack on SESSION OF 107TH CONGRESS future and how complicated school re- our Nation. The SPEAKER pro tempore (Mr. form truly is. An antiterrorism bill to provide our SIMPSON). Under a previous order of the We worked on legislation that would law enforcement officials with the House, the gentleman from Illinois do the following: children from the tools they need to track terrorists and (Mr. HASTERT) is recognized for 5 min- third to eighth grades would be tested bring them to justice. utes. annually in such important subjects as An aviation security bill to improve Mr. HASTERT. Mr. Speaker, I rise reading and mathematics so that we safety at our country’s airports for today to talk about the accomplish- could make sure that they are learn- travelers and airport employees.

VerDate 10-DEC-2001 00:06 Dec 22, 2001 Jkt 099060 PO 00000 Frm 00040 Fmt 7634 Sfmt 0634 E:\CR\FM\K20DE7.065 pfrm02 PsN: H20PT1 December 20, 2001 CONGRESSIONAL RECORD — HOUSE H10953 For bioterrorism, to protect our Na- that lack coverage, and hold HMOs ac- mittee of conference on the disagreeing tion from this growing threat, which countable, allowing patients to chal- votes of the two Houses on the amend- we hope the Senate will complete this lenge their insurance plans if they fail ment of the Senate to the bill (H.R. week. to deliver quality coverage. 3061) ‘‘An Act making appropriations The terrorist attacks pushed an al- We will have other initiatives. We for the Departments of Labor, Health ready struggling economy into a reces- must authorize the historic Welfare and Human Services, and Education, sion. The House responded by passing Reform Act, first passed in 1996. We and related agencies for the fiscal year an economic stimulus package. Unfor- will consider proposals to strengthen ending September 30, 2002, and for tunately, the other body was unable to retirement security, including making other purposes.’’. pass similar legislation. Our bill was a prescription drugs more affordable and f fair and balanced bill that would have available to America’s seniors. helped workers who lost their jobs keep We must also help our President in RECESS their health insurance. Most impor- this historic fight against terrorism. The SPEAKER pro tempore (Mr. tantly, it would have helped those Whether it be providing more resources SIMPSON). Pursuant to clause 12 of rule workers get back to work. It looks for homeland security and getting I, the Chair declares the House in re- today that the other body will not more money for our armed services, cess subject to the call of the Chair. complete work on our legislation. I whether it be the effort to prepare our Accordingly (at 2 o’clock and 19 min- think that is a shame. Nation for biological and chemical ter- utes p.m.), the House stood in recess One of the biggest frustrations this rorism, or our efforts to reform our in- subject to the call of the Chair. year has been the lack of production surance laws so that our Nation will be from our friends on the other side of adequately prepared for the con- f the Rotunda. The House has led the sequences of terrorist attacks, this b 1702 way in implementing the President’s Congress will do the right things for agenda, but on too many occasions the the American people. AFTER RECESS Senate has dropped the ball. Looking over the events of this last The recess having expired, the House Here is the long list of items that year, I cannot help but note the pass- was called to order at 5 o’clock and 2 passed this House but that the Senate ing of several important Members of minutes p.m. has left for next year: Congress: Joe Moakley, a great Amer- f We passed the President’s faith-based ican from Massachusetts; Norm Sisi- initiative, to give religious organiza- sky, a wonderful person who served MESSAGE FROM THE SENATE tions the same rights as other groups this House from Virginia; Floyd A message from the Senate by Mr. to use Federal funds to help America’s Spence, from South Carolina; and Ju- Monahan, one of its clerks, announced less fortunate. lian Dixon, from California, all served that the Senate has passed with an We passed a comprehensive energy their country with distinction, in dif- amendment to House amendment to bill to step up energy production here ferent ways, but with the same sense of Senate amendments in which the con- at home, reduce our reliance on foreign patriotic duty. They will be sorely currence of the House is requested, a sources of energy, and make energy missed in this House of Representa- bill of the House of the following title: cleaner and cheaper and more depend- tives. H.R. 2884. An act to amend the Internal able for years to come. Not only does In conclusion, let me report to you, Revenue Code of 1986 to provide tax relief for this bill set us on a more secure road Mr. Speaker, that this House of Rep- victims of the terrorist attacks against the for the future, it helps our economy by resentatives has served the people in a United States on September 11, 2001. creating another 700,000 American jobs. year of turbulence and war with dis- The message also announced that the We passed a bill that banned human tinction. I am proud of our efforts, and Senate agreed to the report of the com- cloning for reproduction and research I look forward to an equally successful mittee of conference on the disagreeing to uphold the sanctity of life, as well as year in the second session of the 107th votes of the two Houses on the amend- the Unborn Victims of Violence Act, Congress. ment of the Senate to the bill (H.R. which makes it a Federal crime to Mr. Speaker, I would be remiss if I 3338) ‘‘An Act making appropriations harm or kill an unborn child during a did not thank the people who make for the Department of Defense for the violent attack against a pregnant this Congress work, who are here day fiscal year ending September 30, 2002, woman. in and day out, in the wee hours of the and for other purposes.’’. We passed Trade Promotion Author- morning, who enroll our bills, who f ity for our President so that he could make this institution a great institu- open new world markets for American tion; and also those people who in the GENERAL LEAVE goods and services, grow our economy, times of terror and terrorist attack Mr. DOOLITTLE. Mr. Speaker, I ask and open up 1 million new jobs by the spent countless hours and days and unanimous consent that all Members year 2006. weeks making this place available to may have 5 legislative days in which to We passed election reform, to restore the American people so that this Con- revise and extend their remarks on the the American public’s confidence in gress could do its work. I thank you. topic of the out-of-order speech of the the democratic process and ensure that God bless America. gentlewoman from California (Ms. America’s voting system is the very f PELOSI). best in the world. The SPEAKER. Is there objection to Clearly, the other body has much MESSAGE FROM THE SENATE the request of the gentleman from work to do in the next session of the A message from the Senate by Mr. California? 107th Congress. We also must complete Monahan, one of its clerks, announced There was no objection. action on the President’s issue that he that the Senate has passed without said in his election that he wanted amendment a bill and a concurrent res- f every American to have access to olution of the House of the following CONDITIONAL ADJOURNMENT OF health care. The Patients’ Bill of titles: THE HOUSE AND SENATE Rights legislation was passed in this H.R. 1088. An act to amend the Securities Mr. THOMAS. Mr. Speaker, I ask House earlier this year. Exchange Act of 1934 to reduce fees collected unanimous consent that when the b 1415 by the Securities and Exchange Commission, and for other purposes. House adjourns today it adjourn to The bill has been stuck in conference H. Con. Res. 295. Concurrent resolution meet at 4 p.m. on Friday, December 21, since August. It is time to get that leg- providing for the sine die adjournment of the 2001, unless it sooner has received a islation finished. The bill we passed in first session of the One Hundred Seventh message from the Senate transmitting August aims to improve care to expand Congress. its passage without amendment of patient protections, make health care The message also announced that the House Joint Resolution 79, in which more affordable for the many families Senate agreed to the report of the com- case the House shall stand adjourned

VerDate 10-DEC-2001 00:06 Dec 22, 2001 Jkt 099060 PO 00000 Frm 00041 Fmt 7634 Sfmt 0634 E:\CR\FM\K20DE7.068 pfrm02 PsN: H20PT1 H10954 CONGRESSIONAL RECORD — HOUSE December 20, 2001 sine die pursuant to House Concurrent TITLE I——VICTIMS OF TERRORISM TAX years ending before, on, or after September Resolution 295. RELIEF 11, 2001. The SPEAKER. Is there objection to Subtitle A—Relief Provisions for Victims of (2) WAIVER OF LIMITATIONS.—If refund or the request of the gentleman from Terrorist Attacks credit of any overpayment of tax resulting SEC. 101. INCOME TAXES OF VICTIMS OF TER- from the amendments made by this section California? is prevented at any time before the close of There was no objection. RORIST ATTACKS. (a) IN GENERAL.—Section 692 (relating to the 1-year period beginning on the date of f income taxes of members of Armed Forces on the enactment of this Act by the operation death) is amended by adding at the end the of any law or rule of law (including res judi- VICTIMS OF TERRORISM RELIEF following new subsection: cata), such refund or credit may nevertheless ACT OF 2001 ‘‘(d) INDIVIDUALS DYING AS A RESULT OF be made or allowed if claim therefor is filed CERTAIN ATTACKS.— before the close of such period. Mr. THOMAS. Mr. Speaker, I ask ‘‘(1) IN GENERAL.—In the case of a specified SEC. 102. EXCLUSION OF CERTAIN DEATH BENE- unanimous consent to take from the terrorist victim, any tax imposed by this FITS. Speaker’s table the bill (H.R. 2884) to chapter shall not apply— (a) IN GENERAL.—Section 101 (relating to amend the Internal Revenue Code of ‘‘(A) with respect to the taxable year in certain death benefits) is amended by adding 1986 to provide tax relief for victims of which falls the date of death, and at the end the following new subsection: ‘‘(i) CERTAIN EMPLOYEE DEATH BENEFITS the terrorist attacks against the ‘‘(B) with respect to any prior taxable year PAYABLE BY REASON OF DEATH OF CERTAIN United States on September 11, 2001, in the period beginning with the last taxable year ending before the taxable year in which TERRORIST VICTIMS.— with a Senate amendment to the House the wounds, injury, or illness referred to in ‘‘(1) IN GENERAL.—Gross income does not amendment to the Senate amendments paragraph (3) were incurred. include amounts (whether in a single sum or thereto, and concur in the Senate ‘‘(2) $10,000 MINIMUM BENEFIT.—If, but for otherwise) paid by an employer by reason of amendment to the House amendment. this paragraph, the amount of tax not im- the death of an employee who is a specified The Clerk read the title of the bill. posed by paragraph (1) with respect to a terrorist victim (as defined in section The Clerk read the Senate amend- specified terrorist victim is less than $10,000, 692(d)(4)). ‘‘(2) LIMITATION.— ment to the House amendment, as fol- then such victim shall be treated as having ‘‘(A) IN GENERAL.—Subject to such rules as lows: made a payment against the tax imposed by this chapter for such victim’s last taxable the Secretary may prescribe, paragraph (1) Senate Amendment to House Amendment year in an amount equal to the excess of shall not apply to amounts which would have to Senate Amendments: $10,000 over the amount of tax not so im- been payable after death if the individual In lieu of the matter proposed to be inserted posed. had died other than as a specified terrorist by the House amendment to the text of the ‘‘(3) TAXATION OF CERTAIN BENEFITS.—Sub- victim (as so defined). bill, insert: ject to such rules as the Secretary may pre- ‘‘(B) EXCEPTION.—Subparagraph (A) shall SECTION 1. SHORT TITLE; ETC. scribe, paragraph (1) shall not apply to the not apply to incidental death benefits paid (a) SHORT TITLE.—This Act may be cited as amount of any tax imposed by this chapter from a plan described in section 401(a) and the ‘‘Victims of Terrorism Tax Relief Act of which would be computed by only taking exempt from tax under section 501(a). 2001’’. into account the items of income, gain, or ‘‘(3) TREATMENT OF SELF-EMPLOYED INDIVID- (b) AMENDMENT OF 1986 CODE.—Except as other amounts attributable to— UALS.—For purposes of paragraph (1), the otherwise expressly provided, whenever in ‘‘(A) deferred compensation which would term ‘employee’ includes a self-employed in- this Act an amendment or repeal is ex- have been payable after death if the indi- dividual (as defined in section 401(c)(1)).’’. pressed in terms of an amendment to, or re- vidual had died other than as a specified ter- (b) EFFECTIVE DATE; WAIVER OF LIMITA- peal of, a section or other provision, the ref- rorist victim, or TIONS.— erence shall be considered to be made to a ‘‘(B) amounts payable in the taxable year (1) EFFECTIVE DATE.—The amendment section or other provision of the Internal which would not have been payable in such made by this section shall apply to taxable Revenue Code of 1986. taxable year but for an action taken after years ending before, on, or after September (c) TABLE OF CONTENTS.—The table of con- September 11, 2001. 11, 2001. tents for this Act is as follows: ‘‘(4) SPECIFIED TERRORIST VICTIM.—For pur- (2) WAIVER OF LIMITATIONS.—If refund or Sec. 1. Short title; etc. poses of this subsection, the term ‘specified credit of any overpayment of tax resulting terrorist victim’ means any decedent— from the amendments made by this section TITLE I—VICTIMS OF TERRORISM TAX is prevented at any time before the close of RELIEF ‘‘(A) who dies as a result of wounds or in- jury incurred as a result of the terrorist at- the 1-year period beginning on the date of Subtitle A—Relief Provisions for Victims of tacks against the United States on April 19, the enactment of this Act by the operation Terrorist Attacks 1995, or September 11, 2001, or of any law or rule of law (including res judi- Sec. 101. Income taxes of victims of terrorist ‘‘(B) who dies as a result of illness incurred cata), such refund or credit may nevertheless attacks. as a result of an attack involving anthrax be made or allowed if claim therefor is filed Sec. 102. Exclusion of certain death benefits. occurring on or after September 11, 2001, and before the close of such period. Sec. 103. Estate tax reduction. before January 1, 2002. SEC. 103. ESTATE TAX REDUCTION. Sec. 104. Payments by charitable organiza- Such term shall not include any individual (a) IN GENERAL.—Section 2201 is amended tions treated as exempt pay- identified by the Attorney General to have to read as follows: ments. been a participant or conspirator in any such ‘‘SEC. 2201. COMBAT ZONE-RELATED DEATHS OF Sec. 105. Exclusion of certain cancellations attack or a representative of such an indi- MEMBERS OF THE ARMED FORCES of indebtedness. AND DEATHS OF VICTIMS OF CER- vidual.’’. TAIN TERRORIST ATTACKS. Subtitle B—Other Relief Provisions (b) CONFORMING AMENDMENTS.— ‘‘(a) IN GENERAL.—Unless the executor (1) Section 5(b)(1) is amended by inserting Sec. 111. Exclusion for disaster relief pay- elects not to have this section apply, in ap- ments. ‘‘and victims of certain terrorist attacks’’ plying sections 2001 and 2101 to the estate of Sec. 112. Authority to postpone certain before ‘‘on death’’. a qualified decedent, the rate schedule set deadlines and required actions. (2) Section 6013(f)(2)(B) is amended by in- forth in subsection (c) shall be deemed to be Sec. 113. Application of certain provisions to serting ‘‘and victims of certain terrorist at- the rate schedule set forth in section 2001(c). terroristic or military actions. tacks’’ before ‘‘on death’’. ‘‘(b) QUALIFIED DECEDENT.—For purposes of (c) CLERICAL AMENDMENTS.— Sec. 114. Clarification of due date for airline this section, the term ‘qualified decedent’ (1) The heading of section 692 is amended excise tax deposits. means— to read as follows: Sec. 115. Treatment of certain structured ‘‘(1) any citizen or resident of the United settlement payments. ‘‘SEC. 692. INCOME TAXES OF MEMBERS OF States dying while in active service of the ARMED FORCES AND VICTIMS OF Sec. 116. Personal exemption deduction for CERTAIN TERRORIST ATTACKS ON Armed Forces of the United States, if such certain disability trusts. DEATH.’’. decedent— TITLE II—DISCLOSURE OF TAX INFOR- (2) The item relating to section 692 in the ‘‘(A) was killed in action while serving in a MATION IN TERRORISM AND NATIONAL table of sections for part II of subchapter J combat zone, as determined under section SECURITY INVESTIGATIONS of chapter 1 is amended to read as follows: 112(c), or ‘‘(B) died as a result of wounds, disease, or Sec. 201. Disclosure of tax information in ‘‘Sec. 692. Income taxes of members of Armed injury suffered while serving in a combat terrorism and national security Forces and victims of certain zone (as determined under section 112(c)), investigations. terrorist attacks on death.’’. and while in the line of duty, by reason of a TITLE III—NO IMPACT ON SOCIAL (d) EFFECTIVE DATE; WAIVER OF LIMITA- hazard to which such decedent was subjected SECURITY TRUST FUNDS TIONS.— as an incident of such service, and Sec. 301. No impact on social security trust (1) EFFECTIVE DATE.—The amendments ‘‘(2) any specified terrorist victim (as de- funds. made by this section shall apply to taxable fined in section 692(d)(4)).

VerDate 10-DEC-2001 00:06 Dec 22, 2001 Jkt 099060 PO 00000 Frm 00042 Fmt 7634 Sfmt 0634 E:\CR\FM\K20DE7.072 pfrm02 PsN: H20PT1 December 20, 2001 CONGRESSIONAL RECORD — HOUSE H10955

‘‘(c) RATE SCHEDULE.— from the amendments made by this section rier by reason of the death or personal phys- ‘‘If the amount with re- The tentative tax is: is prevented at any time before the close of ical injuries incurred as a result of a quali- spect to which the the 1-year period beginning on the date of fied disaster, or tentative tax to be the enactment of this Act by the operation ‘‘(4) if such amount is paid by a Federal, computed is: of any law or rule of law (including res judi- State, or local government, or agency or in- Not over $150,000 ...... 1 percent of the amount cata), such refund or credit may nevertheless strumentality thereof, in connection with a by which such amount be made or allowed if claim therefor is filed qualified disaster in order to promote the exceeds $100,000. Over $150,000 but not over $500 plus 2 percent of the before the close of such period. general welfare, $200,000. excess over $150,000. SEC. 104. PAYMENTS BY CHARITABLE ORGANIZA- but only to the extent any expense com- Over $200,000 but not over $1,500 plus 3 percent of TIONS TREATED AS EXEMPT PAY- pensated by such payment is not otherwise $300,000. the excess over $200,000. MENTS. compensated for by insurance or otherwise. Over $300,000 but not over $4,500 plus 4 percent of (a) IN GENERAL.—For purposes of the Inter- ‘‘(c) QUALIFIED DISASTER DEFINED.—For $500,000. the excess over $300,000. nal Revenue Code of 1986— purposes of this section, the term ‘qualified Over $500,000 but not over $12,500 plus 5 percent of (1) payments made by an organization de- disaster’ means— $700,000. the excess over $500,000. Over $700,000 but not over $22,500 plus 6 percent of scribed in section 501(c)(3) of such Code by ‘‘(1) a disaster which results from a terror- $900,000. the excess over $700,000. reason of the death, injury, wounding, or ill- istic or military action (as defined in section Over $900,000 but not over $34,500 plus 7 percent of ness of an individual incurred as the result of 692(c)(2)), $1,100,000. the excess over $900,000. the terrorist attacks against the United ‘‘(2) a Presidentially declared disaster (as Over $1,100,000 but not $48,500 plus 8 percent of States on September 11, 2001, or an attack defined in section 1033(h)(3)), over $1,600,000. the excess over involving anthrax occurring on or after Sep- ‘‘(3) a disaster which results from an acci- $1,100,000. Over $1,600,000 but not $88,500 plus 9 percent of tember 11, 2001, and before January 1, 2002, dent involving a common carrier, or from over $2,100,000. the excess over shall be treated as related to the purpose or any other event, which is determined by the $1,600,000. function constituting the basis for such or- Secretary to be of a catastrophic nature, or Over $2,100,000 but not $133,500 plus 10 percent of ganization’s exemption under section 501 of ‘‘(4) with respect to amounts described in over $2,600,000. the excess over such Code if such payments are made in good subsection (b)(4), a disaster which is deter- $2,100,000. faith using a reasonable and objective for- Over $2,600,000 but not $183,500 plus 11 percent of mined by an applicable Federal, State, or over $3,100,000. the excess over mula which is consistently applied, and local authority (as determined by the Sec- $2,600,000. (2) in the case of a private foundation (as retary) to warrant assistance from the Fed- Over $3,100,000 but not $238,500 plus 12 percent of defined in section 509 of such Code), any pay- eral, State, or local government or agency or over $3,600,000. the excess over ment described in paragraph (1) shall not be instrumentality thereof. $3,100,000. treated as made to a disqualified person for ‘‘(d) COORDINATION WITH EMPLOYMENT Over $3,600,000 but not $298,500 plus 13 percent of purposes of section 4941 of such Code. TAXES.—For purposes of chapter 2 and sub- over $4,100,000. the excess over (b) EFFECTIVE DATE.—This section shall $3,600,000. title C, a qualified disaster relief payment Over $4,100,000 but not $363,500 plus 14 percent of apply to payments made on or after Sep- shall not be treated as net earnings from over $5,100,000. the excess over tember 11, 2001. self-employment, wages, or compensation $4,100,000. SEC. 105. EXCLUSION OF CERTAIN CANCELLA- subject to tax. Over $5,100,000 but not $503,500 plus 15 percent of TIONS OF INDEBTEDNESS. ‘‘(e) NO RELIEF FOR CERTAIN INDIVIDUALS.— over $6,100,000. the excess over (a) IN GENERAL.—For purposes of the Inter- Subsections (a) and (f) shall not apply with $5,100,000. nal Revenue Code of 1986— respect to any individual identified by the Over $6,100,000 but not $653,500 plus 16 percent of (1) gross income shall not include any Attorney General to have been a participant over $7,100,000. the excess over amount which (but for this section) would be $6,100,000. or conspirator in a terroristic action (as so Over $7,100,000 but not $813,500 plus 17 percent of includible in gross income by reason of the defined), or a representative of such indi- over $8,100,000. the excess over discharge (in whole or in part) of indebted- vidual. $7,100,000. ness of any taxpayer if the discharge is by ‘‘(f) EXCLUSION OF CERTAIN ADDITIONAL Over $8,100,000 but not $983,500 plus 18 percent of reason of the death of an individual incurred PAYMENTS.—Gross income shall not include over $9,100,000. the excess over as the result of the terrorist attacks against any amount received as payment under sec- $8,100,000. the United States on September 11, 2001, or Over $9,100,000 but not $1,163,500 plus 19 percent tion 406 of the Air Transportation Safety and over $10,100,000. of the excess over as the result of illness incurred as a result of System Stabilization Act.’’ $9,100,000. an attack involving anthrax occurring on or (b) CONFORMING AMENDMENTS.—The table Over $10,100,000 ...... $1,353,500 plus 20 percent after September 11, 2001, and before January of sections for part III of subchapter B of of the excess over 1, 2002, and chapter 1 is amended by striking the item re- $10,100,000. (2) return requirements under section 6050P lating to section 139 and inserting the fol- ‘‘(d) DETERMINATION OF UNIFIED CREDIT.— of such Code shall not apply to any discharge lowing new items: In the case of an estate to which this section described in paragraph (1). applies, subsection (a) shall not apply in de- (b) EFFECTIVE DATE.—This section shall ‘‘Sec. 139. Disaster relief payments. termining the credit under section 2010.’’. apply to discharges made on or after Sep- ‘‘Sec. 140. Cross references to other Acts.’’. (b) CONFORMING AMENDMENTS.— tember 11, 2001, and before January 1, 2002. (c) EFFECTIVE DATE.—The amendments (1) Section 2011 is amended by striking sub- Subtitle B—Other Relief Provisions made by this section shall apply to taxable section (d) and by redesignating subsections SEC. 111. EXCLUSION FOR DISASTER RELIEF PAY- years ending on or after September 11, 2001. (e), (f), and (g) as subsections (d), (e), and (f), MENTS. SEC. 112. AUTHORITY TO POSTPONE CERTAIN respectively. (a) IN GENERAL.—Part III of subchapter B DEADLINES AND REQUIRED AC- (2) Section 2053(d)(3)(B) is amended by of chapter 1 (relating to items specifically TIONS. striking ‘‘section 2011(e)’’ and inserting ‘‘sec- excluded from gross income) is amended by (a) EXPANSION OF AUTHORITY RELATING TO tion 2011(d)’’. redesignating section 139 as section 140 and DISASTERS AND TERRORISTIC OR MILITARY AC- (3) Paragraph (9) of section 532(c) of the inserting after section 138 the following new TIONS.—Section 7508A is amended to read as Economic Growth and Tax Relief Reconcili- section: follows: ation Act of 2001 is repealed. ‘‘SEC. 139. DISASTER RELIEF PAYMENTS. ‘‘SEC. 7508A. AUTHORITY TO POSTPONE CERTAIN (c) CLERICAL AMENDMENT.—The item relat- ‘‘(a) GENERAL RULE.—Gross income shall DEADLINES BY REASON OF PRESI- ing to section 2201 in the table of sections for not include any amount received by an indi- DENTIALLY DECLARED DISASTER subchapter C of chapter 11 is amended to vidual as a qualified disaster relief payment. OR TERRORISTIC OR MILITARY AC- read as follows: ‘‘(b) QUALIFIED DISASTER RELIEF PAYMENT TIONS. DEFINED.—For purposes of this section, the ‘‘(a) IN GENERAL.—In the case of a taxpayer ‘‘Sec. 2201. Combat zone-related deaths of term ‘qualified disaster relief payment’ determined by the Secretary to be affected members of the Armed Forces means any amount paid to or for the benefit by a Presidentially declared disaster (as de- and deaths of victims of certain of an individual— fined in section 1033(h)(3)) or a terroristic or terrorist attacks.’’. ‘‘(1) to reimburse or pay reasonable and military action (as defined in section (d) EFFECTIVE DATE; WAIVER OF LIMITA- necessary personal, family, living, or funeral 692(c)(2)), the Secretary may specify a period TIONS.— expenses incurred as a result of a qualified of up to one year that may be disregarded in (1) EFFECTIVE DATE.—The amendments disaster, determining, under the internal revenue made by this section shall apply to estates of ‘‘(2) to reimburse or pay reasonable and laws, in respect of any tax liability of such decedents— necessary expenses incurred for the repair or taxpayer— (A) dying on or after September 11, 2001, rehabilitation of a personal residence or re- ‘‘(1) whether any of the acts described in and pair or replacement of its contents to the ex- paragraph (1) of section 7508(a) were per- (B) in the case of individuals dying as a re- tent that the need for such repair, rehabili- formed within the time prescribed therefor sult of the April 19, 1995, terrorist attack, tation, or replacement is attributable to a (determined without regard to extension dying on or after April 19, 1995. qualified disaster, under any other provision of this subtitle for (2) WAIVER OF LIMITATIONS.—If refund or ‘‘(3) by a person engaged in the furnishing periods after the date (determined by the credit of any overpayment of tax resulting or sale of transportation as a common car- Secretary) of such disaster or action),

VerDate 10-DEC-2001 00:06 Dec 22, 2001 Jkt 099060 PO 00000 Frm 00043 Fmt 7634 Sfmt 0634 E:\CR\FM\A20DE7.047 pfrm02 PsN: H20PT1 H10956 CONGRESSIONAL RECORD — HOUSE December 20, 2001 ‘‘(2) the amount of any interest, penalty, ‘‘For authority to suspend running of inter- ‘‘CHAPTER 55—STRUCTURED additional amount, or addition to the tax for est, etc. by reason of Presidentially declared SETTLEMENT FACTORING TRANSACTIONS periods after such date, and disaster or terroristic or military action, see ‘‘Sec. 5891. Structured settlement factoring ‘‘(3) the amount of any credit or refund. section 7508A.’’. transactions. ‘‘(b) SPECIAL RULES REGARDING PENSIONS, (2) Section 6081(c) is amended to read as ‘‘SEC. 5891. STRUCTURED SETTLEMENT FAC- ETC.—In the case of a pension or other em- follows: TORING TRANSACTIONS. ployee benefit plan, or any sponsor, adminis- ‘‘(c) CROSS REFERENCES.— ‘‘(a) IMPOSITION OF TAX.—There is hereby trator, participant, beneficiary, or other per- ‘‘For time for performing certain acts post- imposed on any person who acquires directly son with respect to such plan, affected by a poned by reason of war, see section 7508, and or indirectly structured settlement payment disaster or action described in subsection (a), by reason of Presidentially declared disaster rights in a structured settlement factoring the Secretary may specify a period of up to or terroristic or military action, see section transaction a tax equal to 40 percent of the one year which may be disregarded in deter- 7508A.’’. factoring discount as determined under sub- mining the date by which any action is re- (3) Section 6161(d) is amended by adding at section (c)(4) with respect to such factoring quired or permitted to be completed under the end the following new paragraph: transaction. this title. No plan shall be treated as failing ‘‘(3) POSTPONEMENT OF CERTAIN ACTS.— ‘‘(b) EXCEPTION FOR CERTAIN APPROVED to be operated in accordance with the terms TRANSACTIONS.— ‘‘For time for performing certain acts post- of the plan solely as the result of dis- ‘‘(1) IN GENERAL.—The tax under subsection poned by reason of war, see section 7508, and regarding any period by reason of the pre- (a) shall not apply in the case of a structured by reason of Presidentially declared disaster ceding sentence. settlement factoring transaction in which or terroristic or military action, see section ‘‘(c) SPECIAL RULES FOR OVERPAYMENTS.— the transfer of structured settlement pay- 7508A.’’. The rules of section 7508(b) shall apply for ment rights is approved in advance in a purposes of this section.’’. (e) CLERICAL AMENDMENTS.— qualified order. (1) The item relating to section 7508A in (b) CLARIFICATION OF SCOPE OF ACTS SEC- ‘‘(2) QUALIFIED ORDER.—For purposes of the table of sections for chapter 77 is amend- RETARY MAY POSTPONE.—Section this section, the term ‘qualified order’ means 7508(a)(1)(K) (relating to time to be dis- ed to read as follows: a final order, judgment, or decree which— regarded) is amended by striking ‘‘in regula- ‘‘Sec. 7508A. Authority to postpone certain ‘‘(A) finds that the transfer described in tions prescribed under this section’’. deadlines by reason of Presi- paragraph (1)— (c) CONFORMING AMENDMENTS TO ERISA.— dentially declared disaster or ‘‘(i) does not contravene any Federal or (1) Part 5 of subtitle B of title I of the Em- terroristic or military ac- State statute or the order of any court or re- ployee Retirement Income Security Act of tions.’’. sponsible administrative authority, and 1974 (29 U.S.C. 1131 et seq.) is amended by (2) The table of contents for the Employee ‘‘(ii) is in the best interest of the payee, adding at the end the following new section: Retirement Income Security Act of 1974 is taking into account the welfare and support ‘‘SEC. 518. AUTHORITY TO POSTPONE CERTAIN amended by inserting after the item relating of the payee’s dependents, and DEADLINES BY REASON OF PRESI- to section 517 the following new item: ‘‘(B) is issued— DENTIALLY DECLARED DISASTER ‘‘(i) under the authority of an applicable OR TERRORISTIC OR MILITARY AC- ‘‘Sec. 518. Authority to postpone certain State statute by an applicable State court, TIONS. deadlines by reason of Presi- or ‘‘In the case of a pension or other employee dentially declared disaster or ‘‘(ii) by the responsible administrative au- benefit plan, or any sponsor, administrator, terroristic or military ac- thority (if any) which has exclusive jurisdic- participant, beneficiary, or other person tions.’’. tion over the underlying action or pro- with respect to such plan, affected by a (f) EFFECTIVE DATE.—The amendments ceeding which was resolved by means of the Presidentially declared disaster (as defined made by this section shall apply to disasters structured settlement. in section 1033(h)(3) of the Internal Revenue and terroristic or military actions occurring ‘‘(3) APPLICABLE STATE STATUTE.—For pur- Code of 1986) or a terroristic or military ac- on or after September 11, 2001, with respect poses of this section, the term ‘applicable tion (as defined in section 692(c)(2) of such to any action of the Secretary of the Treas- State statute’ means a statute providing for Code), the Secretary may, notwithstanding ury, the Secretary of Labor, or the Pension the entry of an order, judgment, or decree any other provision of law, prescribe, by no- Benefit Guaranty Corporation occurring on described in paragraph (2)(A) which is en- tice or otherwise, a period of up to one year or after the date of the enactment of this acted by— which may be disregarded in determining the Act. ‘‘(A) the State in which the payee of the date by which any action is required or per- SEC. 113. APPLICATION OF CERTAIN PROVISIONS structured settlement is domiciled, or mitted to be completed under this Act. No TO TERRORISTIC OR MILITARY AC- ‘‘(B) if there is no statute described in sub- plan shall be treated as failing to be operated TIONS. paragraph (A), the State in which either the in accordance with the terms of the plan (a) DISABILITY INCOME.—Section 104(a)(5) party to the structured settlement (includ- solely as the result of disregarding any pe- (relating to compensation for injuries or ing an assignee under a qualified assignment riod by reason of the preceding sentence.’’. sickness) is amended by striking ‘‘a violent under section 130) or the person issuing the (2) Section 4002 of Employee Retirement attack’’ and all that follows through the pe- funding asset for the structured settlement Income Security Act of 1974 (29 U.S.C. 1302) is riod and inserting ‘‘a terroristic or military is domiciled or has its principal place of amended by adding at the end the following action (as defined in section 692(c)(2)).’’. business. (b) EXEMPTION FROM INCOME TAX FOR CER- new subsection: ‘‘(4) APPLICABLE STATE COURT.—For pur- TAIN MILITARY OR CIVILIAN EMPLOYEES.—Sec- ‘‘(i) SPECIAL RULES REGARDING DISASTERS, poses of this section— tion 692(c) is amended— ETC.—In the case of a pension or other em- ‘‘(A) IN GENERAL.—The term ‘applicable (1) by striking ‘‘outside the United States’’ ployee benefit plan, or any sponsor, adminis- State court’ means, with respect to any ap- in paragraph (1), and trator, participant, beneficiary, or other per- plicable State statute, a court of the State (2) by striking ‘‘SUSTAINED OVERSEAS’’ in son with respect to such plan, affected by a which enacted such statute. Presidentially declared disaster (as defined the heading. (c) EFFECTIVE DATE.—The amendments ‘‘(B) SPECIAL RULE.—In the case of an ap- in section 1033(h)(3) of the Internal Revenue made by this section shall apply to taxable plicable State statute described in paragraph Code of 1986) or a terroristic or military ac- years ending on or after September 11, 2001. (3)(B), such term also includes a court of the tion (as defined in section 692(c)(2) of such SEC. 114. CLARIFICATION OF DUE DATE FOR AIR- State in which the payee of the structured Code), the corporation may, notwithstanding LINE EXCISE TAX DEPOSITS. settlement is domiciled. any other provision of law, prescribe, by no- (a) IN GENERAL.—Paragraph (3) of section ‘‘(5) QUALIFIED ORDER DISPOSITIVE.—A tice or otherwise, a period of up to one year 301(a) of the Air Transportation Safety and qualified order shall be treated as dispositive which may be disregarded in determining the System Stabilization Act (Public Law 107–42) for purposes of the exception under this sub- date by which any action is required or per- is amended to read as follows: section. mitted to be completed under this Act. No ‘‘(3) AIRLINE-RELATED DEPOSIT.—For pur- ‘‘(c) DEFINITIONS.—For purposes of this sec- plan shall be treated as failing to be operated poses of this subsection, the term ‘airline-re- tion— in accordance with the terms of the plan lated deposit’ means any deposit of taxes im- ‘‘(1) STRUCTURED SETTLEMENT.—The term solely as the result of disregarding any pe- posed by subchapter C of chapter 33 of such ‘structured settlement’ means an arrange- riod by reason of the preceding sentence.’’. Code (relating to transportation by air).’’. ment— (d) ADDITIONAL CONFORMING AMEND- (b) EFFECTIVE DATE.—The amendment ‘‘(A) which is established by— MENTS.— made by this section shall take effect as if ‘‘(i) suit or agreement for the periodic pay- (1) Section 6404 is amended— included in section 301 of the Air Transpor- ment of damages excludable from the gross (A) by striking subsection (h), tation Safety and System Stabilization Act income of the recipient under section (B) by redesignating subsection (i) as sub- (Public Law 107–42). 104(a)(2), or section (h), and SEC. 115. TREATMENT OF CERTAIN STRUCTURED ‘‘(ii) agreement for the periodic payment of (C) by adding at the end the following new SETTLEMENT PAYMENTS. compensation under any workers’ compensa- subsection: (a) IN GENERAL.—Subtitle E is amended by tion law excludable from the gross income of ‘‘(i) CROSS REFERENCE.— adding at the end the following new chapter: the recipient under section 104(a)(1), and

VerDate 10-DEC-2001 00:06 Dec 22, 2001 Jkt 099060 PO 00000 Frm 00044 Fmt 7634 Sfmt 0634 E:\CR\FM\A20DE7.047 pfrm02 PsN: H20PT1 December 20, 2001 CONGRESSIONAL RECORD — HOUSE H10957 ‘‘(B) under which the periodic payments section 5891(d) of the Internal Revenue Code 1917 of the Social Security Act (42 U.S.C. are— of 1986, as added by this section) shall apply 1396p), and ‘‘(i) of the character described in subpara- to structured settlement factoring trans- ‘‘(II) all of the beneficiaries of the trust as graphs (A) and (B) of section 130(c)(2), and actions (as defined in section 5891(c) of such of the close of the taxable year are deter- ‘‘(ii) payable by a person who is a party to Code (as so added)) entered into on or after mined by the Commissioner of Social Secu- the suit or agreement or to the workers’ the 30th day following the date of the enact- rity to have been disabled (within the mean- compensation claim or by a person who has ment of this Act. ing of section 1614(a)(3) of the Social Secu- assumed the liability for such periodic pay- (2) CLARIFICATION OF EXISTING LAW.—Sec- rity Act, 42 U.S.C. 1382c(a)(3)) for some por- ments under a qualified assignment in ac- tion 5891(d) of such Code (as so added) shall tion of such year. cordance with section 130. apply to structured settlement factoring A trust shall not fail to meet the require- ‘‘(2) STRUCTURED SETTLEMENT PAYMENT transactions (as defined in section 5891(c) of ments of subclause (II) merely because the RIGHTS.—The term ‘structured settlement such Code (as so added)) entered into before, corpus of the trust may revert to a person payment rights’ means rights to receive pay- on, or after such 30th day. who is not so disabled after the trust ceases ments under a structured settlement. (3) TRANSITION RULE.—In the case of a to have any beneficiary who is so disabled.’’ ‘‘(3) STRUCTURED SETTLEMENT FACTORING structured settlement factoring transaction ‘‘(3) DEDUCTIONS IN LIEU OF PERSONAL EX- TRANSACTION.— entered into during the period beginning on EMPTION.—The deductions allowed by this ‘‘(A) IN GENERAL.—The term ‘structured the 30th day following the date of the enact- subsection shall be in lieu of the deductions settlement factoring transaction’ means a ment of this Act and ending on July 1, 2002, allowed under section 151 (relating to deduc- transfer of structured settlement payment no tax shall be imposed under section 5891(a) tion for personal exemption).’’. rights (including portions of structured set- of such Code if— (b) EFFECTIVE DATE.—The amendment tlement payments) made for consideration (A) the structured settlement payee is made by this section shall apply to taxable by means of sale, assignment, pledge, or domiciled in a State (or possession of the years ending on or after September 11, 2001. other form of encumbrance or alienation for United States) which has not enacted a stat- consideration. ute providing that the structured settlement TITLE II—DISCLOSURE OF TAX INFORMA- ‘‘(B) EXCEPTION.—Such term shall not in- factoring transaction is ineffective unless TION IN TERRORISM AND NATIONAL SE- clude— the transaction has been approved by an CURITY INVESTIGATIONS ‘‘(i) the creation or perfection of a security order, judgment, or decree of a court (or SEC. 201. DISCLOSURE OF TAX INFORMATION IN interest in structured settlement payment where applicable, a responsible administra- TERRORISM AND NATIONAL SECU- rights under a blanket security agreement tive authority) which finds that such trans- RITY INVESTIGATIONS. entered into with an insured depository in- action— (a) DISCLOSURE WITHOUT A REQUEST OF IN- stitution in the absence of any action to re- (i) does not contravene any Federal or FORMATION RELATING TO TERRORIST ACTIVI- direct the structured settlement payments State statute or the order of any court (or TIES, ETC.—Paragraph (3) of section 6103(i) to such institution (or agent or successor responsible administrative authority), and (relating to disclosure of return information thereof) or otherwise to enforce such blanket (ii) is in the best interest of the structured to apprise appropriate officials of criminal security interest as against the structured settlement payee or is appropriate in light of activities or emergency circumstances) is settlement payment rights, or a hardship faced by the payee, and amended by adding at the end the following ‘‘(ii) a subsequent transfer of structured (B) the person acquiring the structured new subparagraph: settlement payment rights acquired in a settlement payment rights discloses to the ‘‘(C) TERRORIST ACTIVITIES, ETC.— structured settlement factoring transaction. structured settlement payee in advance of ‘‘(i) IN GENERAL.—Except as provided in ‘‘(4) FACTORING DISCOUNT.—The term ‘fac- the structured settlement factoring trans- paragraph (6), the Secretary may disclose in toring discount’ means an amount equal to action the amounts and due dates of the pay- writing return information (other than tax- the excess of— ments to be transferred, the aggregate payer return information) that may be re- ‘‘(A) the aggregate undiscounted amount of amount to be transferred, the consideration lated to a terrorist incident, threat, or activ- structured settlement payments being ac- to be received by the structured settlement ity to the extent necessary to apprise the quired in the structured settlement factoring payee for the transferred payments, the dis- head of the appropriate Federal law enforce- transaction, over counted present value of the transferred pay- ment agency responsible for investigating or ‘‘(B) the total amount actually paid by the ments (including the present value as deter- responding to such terrorist incident, threat, acquirer to the person from whom such mined in the manner described in section or activity. The head of the agency may dis- structured settlement payments are ac- 7520 of such Code), and the expenses required close such return information to officers and quired. under the terms of the structured settlement employees of such agency to the extent nec- ‘‘(5) RESPONSIBLE ADMINISTRATIVE AUTHOR- factoring transaction to be paid by the struc- essary to investigate or respond to such ter- ITY.—The term ‘responsible administrative tured settlement payee or deducted from the rorist incident, threat, or activity. authority’ means the administrative author- proceeds of such transaction. ‘‘(ii) DISCLOSURE TO THE DEPARTMENT OF ity which had jurisdiction over the under- SEC. 116. PERSONAL EXEMPTION DEDUCTION JUSTICE.—Returns and taxpayer return infor- lying action or proceeding which was re- FOR CERTAIN DISABILITY TRUSTS. mation may also be disclosed to the Attor- solved by means of the structured settle- (a) IN GENERAL.—Subsection (b) of section ney General under clause (i) to the extent ment. 642 (relating to deduction for personal ex- necessary for, and solely for use in pre- ‘‘(6) STATE.—The term ‘State’ includes the emption) is amended to read as follows: paring, an application under paragraph Commonwealth of Puerto Rico and any pos- ‘‘(b) DEDUCTION FOR PERSONAL EXEMP- (7)(D). session of the United States. TION.— ‘‘(iii) TAXPAYER IDENTITY.—For purposes of ‘‘(d) COORDINATION WITH OTHER PROVI- ‘‘(1) ESTATES.—An estate shall be allowed a this subparagraph, a taxpayer’s identity SIONS.— deduction of $600. shall not be treated as taxpayer return infor- ‘‘(1) IN GENERAL.—If the applicable require- ‘‘(2) TRUSTS.— mation. ments of sections 72, 104(a)(1), 104(a)(2), 130, ‘‘(A) IN GENERAL.—Except as otherwise pro- ‘‘(iv) TERMINATION.—No disclosure may be and 461(h) were satisfied at the time the vided in this paragraph, a trust shall be al- made under this subparagraph after Decem- structured settlement involving structured lowed a deduction of $100. ber 31, 2003.’’. settlement payment rights was entered into, ‘‘(B) TRUSTS DISTRIBUTING INCOME CUR- (b) DISCLOSURE UPON REQUEST OF INFORMA- the subsequent occurrence of a structured RENTLY.—A trust which, under its governing TION RELATING TO TERRORIST ACTIVITIES, settlement factoring transaction shall not instrument, is required to distribute all of ETC.—Subsection (i) of section 6103 (relating affect the application of the provisions of its income currently shall be allowed a de- to disclosure to Federal officers or employ- such sections to the parties to the structured duction of $300. ees for administration of Federal laws not settlement (including an assignee under a ‘‘(C) DISABILITY TRUSTS.— relating to tax administration) is amended qualified assignment under section 130) in ‘‘(i) IN GENERAL.—A qualified disability by redesignating paragraph (7) as paragraph any taxable year. trust shall be allowed a deduction equal to (8) and by inserting after paragraph (6) the ‘‘(2) NO WITHHOLDING OF TAX.—The provi- the exemption amount under section 151(d), following new paragraph: sions of section 3405 regarding withholding of determined— ‘‘(7) DISCLOSURE UPON REQUEST OF INFORMA- tax shall not apply to the person making the ‘‘(I) by treating such trust as an individual TION RELATING TO TERRORIST ACTIVITIES, payments in the event of a structured settle- described in section 151(d)(3)(C)(iii), and ETC.— ment factoring transaction.’’. ‘‘(II) by applying section 67(e) (without the ‘‘(A) DISCLOSURE TO LAW ENFORCEMENT (b) CLERICAL AMENDMENT.—The table of chapters for subtitle E is amended by adding reference to section 642(b)) for purposes of AGENCIES.— at the end the following new item: determining the adjusted gross income of the ‘‘(i) IN GENERAL.—Except as provided in trust. paragraph (6), upon receipt by the Secretary ‘‘Chapter 55. Structured settlement factoring ‘‘(ii) QUALIFIED DISABILITY TRUST.—For of a written request which meets the require- transactions.’’. purposes of clause (i), the term ‘qualified dis- ments of clause (iii), the Secretary may dis- (c) EFFECTIVE DATES.— ability trust’ means any trust if— close return information (other than tax- (1) IN GENERAL.—The amendments made by ‘‘(I) such trust is a disability trust de- payer return information) to officers and this section (other than the provisions of scribed in subsection (c)(2)(B)(iv) of section employees of any Federal law enforcement

VerDate 10-DEC-2001 00:06 Dec 22, 2001 Jkt 099060 PO 00000 Frm 00045 Fmt 7634 Sfmt 0634 E:\CR\FM\A20DE7.047 pfrm02 PsN: H20PT1 H10958 CONGRESSIONAL RECORD — HOUSE December 20, 2001 agency who are personally and directly en- agency or Federal intelligence agency who (5) Paragraph (6) of section 6103(i) is gaged in the response to or investigation of are personally and directly engaged in any amended— any terrorist incident, threat, or activity. investigation, response to, or analysis of in- (A) by striking ‘‘(3)(A)’’ and inserting ‘‘(ii) DISCLOSURE TO STATE AND LOCAL LAW telligence and counterintelligence informa- ‘‘(3)(A) or (C)’’, and ENFORCEMENT AGENCIES.—The head of any tion concerning any terrorist incident, (B) by striking ‘‘or (7)’’ and inserting ‘‘(7), Federal law enforcement agency may dis- threat, or activity. Return or return infor- or (8)’’. close return information obtained under mation opened to inspection or disclosure (6) Section 6103(p)(3) is amended— clause (i) to officers and employees of any pursuant to the preceding sentence shall be (A) in subparagraph (A) by striking State or local law enforcement agency but solely for the use of such officers and em- ‘‘(7)(A)(ii)’’ and inserting ‘‘(8)(A)(ii)’’, and only if such agency is part of a team with ployees in the investigation, response, or (B) in subparagraph (C) by striking the Federal law enforcement agency in such analysis, and in any judicial, administrative, ‘‘(i)(3)(B)(i)’’ and inserting ‘‘(i)(3)(B)(i) or response or investigation and such informa- or grand jury proceedings, pertaining to such (7)(A)(ii)’’. tion is disclosed only to officers and employ- terrorist incident, threat, or activity. (7) Section 6103(p)(4) is amended— ees who are personally and directly engaged ‘‘(ii) APPLICATION FOR ORDER.—The Attor- (A) in the matter preceding subparagraph in such response or investigation. ney General, the Deputy Attorney General, (A)— ‘‘(iii) REQUIREMENTS.—A request meets the the Associate Attorney General, any Assist- (i) by striking ‘‘or (5),’’ the first place it requirements of this clause if— ant Attorney General, or any United States appears and inserting ‘‘(5), or (7),’’, and ‘‘(I) the request is made by the head of any attorney may authorize an application to a (ii) by striking ‘‘(i)(3)(B)(i),’’ and inserting Federal law enforcement agency (or his dele- Federal district court judge or magistrate ‘‘(i)(3)(B)(i) or (7)(A)(ii),’’, and gate) involved in the response to or inves- for the order referred to in clause (i). Upon (B) in subparagraph (F)(ii) by striking ‘‘or tigation of any terrorist incident, threat, or such application, such judge or magistrate (5),’’ the first place it appears and inserting activity, and may grant such order if he determines on the ‘‘(5) or (7),’’. ‘‘(II) the request sets forth the specific rea- basis of the facts submitted by the applicant (8) Section 6103(p)(6)(B)(i) is amended by son or reasons why such disclosure may be that— striking ‘‘(i)(7)(A)(ii)’’ and inserting relevant to a terrorist incident, threat, or ‘‘(I) there is reasonable cause to believe, ‘‘(i)(8)(A)(ii)’’. activity. based upon information believed to be reli- (9) Section 6105(b) is amended— ‘‘(iv) LIMITATION ON USE OF INFORMATION.— able, that the return or return information (A) by striking ‘‘or’’ at the end of para- Information disclosed under this subpara- may be relevant to a matter relating to such graph (2), graph shall be solely for the use of the offi- terrorist incident, threat, or activity, and (B) by striking ‘‘paragraphs (1) or (2)’’ in cers and employees to whom such informa- ‘‘(II) the return or return information is paragraph (3) and inserting ‘‘paragraph (1), tion is disclosed in such response or inves- sought exclusively for use in a Federal inves- (2), or (3)’’, tigation. tigation, analysis, or proceeding concerning (C) by redesignating paragraph (3) as para- ‘‘(B) DISCLOSURE TO INTELLIGENCE AGEN- any terrorist incident, threat, or activity. graph (4), and CIES.— ‘‘(D) SPECIAL RULE FOR EX PARTE DISCLO- (D) by inserting after paragraph (2) the fol- ‘‘(i) IN GENERAL.—Except as provided in SURE BY THE IRS.— lowing new paragraph: paragraph (6), upon receipt by the Secretary ‘‘(i) IN GENERAL.—Except as provided in ‘‘(3) to the disclosure of tax convention in- of a written request which meets the require- paragraph (6), the Secretary may authorize formation on the same terms as return infor- ments of clause (ii), the Secretary may dis- an application to a Federal district court mation may be disclosed under paragraph close return information (other than tax- judge or magistrate for the order referred to (3)(C) or (7) of section 6103(i), except that in payer return information) to those officers in subparagraph (C)(i). Upon such applica- the case of tax convention information pro- and employees of the Department of Justice, tion, such judge or magistrate may grant vided by a foreign government, no disclosure the Department of the Treasury, and other such order if he determines on the basis of may be made under this paragraph without Federal intelligence agencies who are per- the facts submitted by the applicant that the the written consent of the foreign govern- sonally and directly engaged in the collec- requirements of subparagraph (C)(ii)(I) are ment, or’’. tion or analysis of intelligence and counter- met. intelligence information or investigation ‘‘(ii) LIMITATION ON USE OF INFORMATION.— Mr. THOMAS (during the reading). concerning any terrorist incident, threat, or Information disclosed under clause (i)— Mr. Speaker, I ask unanimous consent activity. For purposes of the preceding sen- ‘‘(I) may be disclosed only to the extent that the Senate amendment to the tence, the information disclosed under the necessary to apprise the head of the appro- House amendment to the Senate preceding sentence shall be solely for the use priate Federal law enforcement agency re- amendments be considered as read and of such officers and employees in such inves- sponsible for investigating or responding to a tigation, collection, or analysis. terrorist incident, threat, or activity, and printed in the RECORD. ‘‘(ii) REQUIREMENTS.—A request meets the ‘‘(II) shall be solely for use in a Federal in- The SPEAKER. Is there objection to requirements of this subparagraph if the re- vestigation, analysis, or proceeding con- the request of the gentleman from quest— cerning any terrorist incident, threat, or ac- California? ‘‘(I) is made by an individual described in tivity. There was no objection. clause (iii), and The head of such Federal agency may dis- The SPEAKER. Is there objection to ‘‘(II) sets forth the specific reason or rea- close such information to officers and em- the initial request of the gentleman sons why such disclosure may be relevant to ployees of such agency to the extent nec- a terrorist incident, threat, or activity. essary to investigate or respond to such ter- from California? ‘‘(iii) REQUESTING INDIVIDUALS.—An indi- rorist incident, threat, or activity. There was no objection. vidual described in this subparagraph is an ‘‘(E) TERMINATION.—No disclosure may be The SPEAKER. The gentleman from individual— made under this paragraph after December California (Mr. THOMAS) is recognized ‘‘(I) who is an officer or employee of the 31, 2003.’’. for 1 hour. Department of Justice or the Department of (c) CONFORMING AMENDMENTS.— Mr. THOMAS. Mr. Speaker, I yield the Treasury who is appointed by the Presi- (1) Section 6103(a)(2) is amended by insert- dent with the advice and consent of the Sen- ing ‘‘any local law enforcement agency re- myself such time as I may consume. ate or who is the Director of the United ceiving information under subsection I do want to note that the final act of States Secret Service, and (i)(7)(A),’’ after ‘‘State,’’. the Senate in this year of 2001 and the ‘‘(II) who is responsible for the collection (2) Section 6103(b) is amended by adding at final act of the House in this year of and analysis of intelligence and counter- the end the following new paragraph: 2001 was in fact a very feeble gesture to intelligence information concerning any ter- ‘‘(11) TERRORIST INCIDENT, THREAT, OR AC- those victims of terrorism that fun- rorist incident, threat, or activity. TIVITY.—The term ‘terrorist incident, threat, damentally changed our lives on Sep- ‘‘(iv) TAXPAYER IDENTITY.—For purposes of or activity’ means an incident, threat, or ac- tember 11. And notwithstanding the this subparagraph, a taxpayer’s identity tivity involving an act of domestic terrorism shall not be treated as taxpayer return infor- (as defined in section 2331(5) of title 18, difficulties of a democratic govern- mation. United States Code) or international ter- ment, in which decisions are made ‘‘(C) DISCLOSURE UNDER EX PARTE ORDERS.— rorism (as defined in section 2331(1) of such quantitatively, as we close for this hol- ‘‘(i) IN GENERAL.—Except as provided in title).’’. iday season, the House and the Senate paragraph (6), any return or return informa- (3) The heading of section 6103(i)(3) is want this to be a gesture, small though tion with respect to any specified taxable pe- amended by inserting ‘‘OR TERRORIST’’ after it may be, to the victims of September riod or periods shall, pursuant to and upon ‘‘CRIMINAL’’. 11. the grant of an ex parte order by a Federal (4) Paragraph (4) of section 6103(i) is Finally, Mr. Speaker, on behalf of all district court judge or magistrate under amended— clause (ii), be open (but only to the extent (A) in subparagraph (A) by inserting ‘‘or the Members of the House of Rep- necessary as provided in such order) to in- (7)(C)’’ after ‘‘paragraph (1)’’, and resentatives, I wish to extend to the spection by, or disclosure to, officers and em- (B) in subparagraph (B) by striking ‘‘or constitutional head of the House of ployees of any Federal law enforcement (3)(A)’’ and inserting ‘‘(3)(A) or (C), or (7)’’. Representatives, the Speaker of the

VerDate 10-DEC-2001 00:06 Dec 22, 2001 Jkt 099060 PO 00000 Frm 00046 Fmt 7634 Sfmt 0634 E:\CR\FM\A20DE7.047 pfrm02 PsN: H20PT1 December 20, 2001 CONGRESSIONAL RECORD — HOUSE H10959 House of Representatives, and his fam- helping us draft legislation. They work long SPECIAL ORDERS GRANTED ily, a very merry holiday, happy hours, often under intense pressure, trans- By unanimous consent, permission to Christmas, and a good new year. forming our public-policy ideas into the magic address the House, following the legis- The SPEAKER. Thank you. words of bills and amendments, doing so with lative program and any special orders Without objection, the Senate grace and magnanimity and making it look heretofore entered, was granted to: amendment to the House amendment is easy. I want to applaud one particular legisla- concurred in. (The following Members (at the re- tive counsel, Noah Wofsy, whose help has quest of Mr. FRANK) to revise and ex- There was no objection. been indispensable to the Committee on A motion to reconsider was laid on tend their remarks and include extra- House Administration, most recently on the the table. neous material:) landmark Help America Vote Act (H.R. 3295). The SPEAKER. Under a previous Mr. BONIOR, for 5 minutes, today. order of the House, the gentleman from I greatly value Noah’s help and expertise, and Mr. PALLONE, for 5 minutes, today. look forward to working with him again during Maryland (Mr. HOYER) is recognized for Ms. NORTON, for 5 minutes, today. 5 minutes. the second session. Ms. WOOLSEY, for 5 minutes, today. We also owe special thanks to our cloak- f Ms. WATSON of California, for 5 min- room staffs, who always have the answer to utes, today. THANKING THE STAFF our favorite question (‘‘when’s the next Mr. BROWN of Ohio, for 5 minutes, Mr. HOYER. Mr. Speaker, as the first ses- vote?’’), and to our leadership and floor staff, today. sion of the 107th Congress draws to a close, who are crucial members of the team. Mr. FRANK, for 5 minutes, today. I wish to thank the staff for their assistance We should also remember our ‘‘extended’’ Mr. FALEOMAVAEGA, for 5 minutes, throughout this eventful year. None of us staff, including Dan Mulhollan and his experts today. could discharge our responsibilities without the at the Congressional Research Service, and Mr. STRICKLAND, for 5 minutes, help and support of the staff. Dan Crippen and his Congressional Budget today. Let me begin by expressing gratitude to the Office staff, all of whom provide excellent sup- Ms. JACKSON-LEE of Texas, for 5 min- employees of the Architect of the Capitol, who port to our deliberations. The Attending Physi- utes, today. maintain the Capitol buildings and grounds. cian, Dr. John Eisold and his staff, have coped Mr. HOYER, for 5 minutes, today. Without the vital work of engineers, car- superbly with the anthrax attack and its after- (The following Members (at the re- penters, painters, electricians and others, es- math, inspiring confidence. As always, the pro- quest of Mr. BEREUTER) to revise and pecially the custodians who clean our offices fessionals of the Government Printing Office extend their remarks and include ex- each night, we could not work. AoC employ- and the General Accounting Office have pro- traneous material:) ees do a wonderful job under difficult cir- vided exceptional support. Our tour guides Mr. KIRK, for 5 minutes, today. cumstances, and they deserve special rec- provide constituents wonderful tours of the Mr. SOUDER, for 5 minutes, today. ognition. Capitol, for which we, and they, are always Mr. BEREUTER, for 5 minutes, today. Next, I wish to thank the three House Offi- thankful. (The following Member (at his own cers and all their employees, who collectively Finally, I wish to thank the committee and request) to revise and extend his re- maintain the framework in which the House joint-committee staffs, and the personal staffs marks and include extraneous mate- operates. Jay Eagen, our Chief Administrative of Members, whose efforts are also highly val- rial:) Officer, and his deputy Lawrence Davenport, ued. I am obviously most grateful for the work Mr. HASTERT, for 5 minutes, today. manage a diverse organization that provides us with everything from furniture and carpets of my own staff, beginning with Cory Alex- f to office supplies and information technology, ander, John Bohanan, Betsy Bossart, Tom EXTENSION OF REMARKS child care and other personnel-related support, Craddock, Chonya Davis-Johnson, Stacey Farnen, Wanda Hardesty, Corey Jackson, By unanimous consent, permission to including food services and even our pay- revise and extend remarks was granted checks. Bill Livingood, our Sergeant at Arms, Dayle Lewis, Kenya McGruder, Kathy May, Scott Nance, Faron Paramore, Andy Quinn, to: and his deputy, Kerri Hanley, oversee Capitol Mr. DOOLITTLE and to include extra- security for the benefit of Members, staff, dig- Thomas Richards, Betty Richardson, Betty Rogers, Erica Rossi, and Ryan Seggel of my neous material, notwithstanding the nitaries, tourists and others who visit the com- fact that it exceeds two pages of the plex every year, working in conjunction with personal office; Keith Abouchar, Robert Bean, Kevin Cyron, Connie Goode, Michael Har- RECORD and is estimated by the Public the brave men and women of the U.S. Capitol Printer to cost $17,963.63. Police. Our Clerk, Jeff Trandahl, his deputy, rison, Charles Howell, Ellen McCarthy, Matt Martha Morrison, and their staff compile the Pinkus, Bernard Raimo, David Ransom, Brian f House Journal, tally our votes, enroll our bills, Romick, and Sterling Springs of the House ENROLLED BILLS SIGNED Administration Committee; Rob Nabors, of the transcribe our debates, and generally ensure Mr. Trandahl, Clerk of the House, re- that our legislative process functions smoothly. Treasury, Postal Appropriations Sub- committee; and Marlene Kaufman, of the Hel- ported and found truly enrolled bills of Jeff also oversees the Page program, which the House of the following titles, which provides an enriching experience for the sinki Commission. I could not fulfill my respon- sibilities without them. were thereupon signed by the Speaker: Pages, who do a great job. H.R. 643. An act to reauthorize the African Let us all give thanks for the House Chap- Mr. Speaker, Members aren’t always aware of what all the staff do, and the staff aren’t al- Elephant Conservation Act. lain, Father Daniel Coughlin, who tends his H.R. 645. An act to reauthorize the Rhinoc- flock superbly. Charles Johnson, our distin- ways aware of what Members do. But to- eros and Tiger Conservation Act of 1994. guished Parliamentarian, and his learned gether, we make this House work for the H.R. 2199, An act to amend the National duputies and assistants John Sullivan, Tom American people. I hope all Members will join Capital Revitalization and Self-Government Duncan, Muftiah McCartin, Tom Wickham, me in thanking the staff, wherever they work Improvement Act of 1997 to permit any Fed- Ethan Lauer, Gay Topper, Brian Cooper and and whatever they do, for all their hard work eral law enforcement agency to enter into a Debby Khalili, provide invaluable procedural this year. cooperative agreement with the Metropoli- tan Police Department of the District of Co- guidance to the Speaker and Members who lumbia to assist the Department in carrying f preside over the House. I recall being greatly out crime prevention and law enforcement comforted by their presence when, during an activities in the District of Columbia if earlier era, I occasionally occupied the Chair. LEAVE OF ABSENCE deemed appropriate by the Chief of the De- The General Counsel, Geraldine Gennet, partment and the United States Attorney for and her staff well represent the House in legal By unanimous consent, leave of ab- the District of Columbia, and for other pur- matters. The Law Revision counsel, John Mil- sence was granted to: poses. ler, and his staff organize our legislation into Mr. LUTHER (at the request of Mr. H.R. 2657. An act to amend title 11, District a useful body of laws. The Inspector General, GEPHARDT) for today on account of of Columbia Code, to redesignate the Family family matters. Division of the Superior Court of the District Steve McNamara, and his staff help us seek of Columbia as the Family Court of the Su- ways to improve the administration of the Ms. EDDIE BERNICE JOHNSON of Texas perior Court, to recruit and retain trained House. For all of them we are grateful. (at the request of Mr. GEPHARDT) for and experienced judges to serve in the Fam- We are also greatly indebted to the Legisla- today on account of business in the dis- ily Court, to promote consistency and effi- tive Counsel, Pope Barrow, and his staff for trict. ciency in the assignment of judges to the

VerDate 10-DEC-2001 00:06 Dec 22, 2001 Jkt 099060 PO 00000 Frm 00047 Fmt 7634 Sfmt 0634 E:\CR\FM\K20DE7.073 pfrm02 PsN: H20PT1 H10960 CONGRESSIONAL RECORD — HOUSE December 20, 2001 Family Court and in the consideration of ac- Dan Burton, Steve Buyer, Sonny Cal- Ray LaHood, Nick Lampson, James R. tions and proceedings in the Family Court, lahan, Ken Calvert, Dave Camp, Chris Langevin, Tom Lantos, Steve Largent, and for other purposes. Cannon, Eric Cantor, Shelly Moore Rick Larsen, John B. Larson, Tom f Capito, Lois Capps, Michael E. Latham, Steven C. LaTourette, James Capuano, Benjamin L. Cardin, Brad A. Leach, Barbara Lee, Sander M. SENATE ENROLLED BILL SIGNED Carson, Julia Carson, Michael N. Cas- Levin, Jerry Lewis, John Lewis, Ron The SPEAKER announced his signa- tle, Steve Chabot, Saxby Chambliss, Lewis, John Linder, William O. Lipin- ture to enrolled bill of the Senate of Donna M. Christensen, Wm. Lacy Clay, ski, Frank A. LoBiondo, Zoe Lofgren, the following title: Eva M. Clayton, Bob Clement, James Nita M. Lowey, Frank D. Lucas, Ken S. 1438. An act to authorize appropriations E. Clyburn, Howard Coble, Mac Collins, Lucas, Bill Luther, Stephen F. Lynch, for fiscal year 2002 for military activities of Larry Combest, Gary A. Condit, John Carolyn B. Maloney, James H. the Department of Defense, for military con- Cooksey, Jery F. Costello, Christopher Maloney, Donald A. Manzullo, Edward struction, and for defense activities of the Cox, William J. Coyne, Robert E. (Bud) J. Markey, Frank Mascara, Jim Mathe- Department of Energy, to prescribe per- Cramer, Jr., Philip P. Crane, Ander son, Robert T. Matsui, Carolyn McCar- sonnel strengths for such fiscal year to the Armed Forces, and for other purposes. Crenshaw, Joseph Crowley, Barbara thy, Karen McCarthy, Betty McCollum, Cubin, John Abney Culberson, Elijah E. Jim McCrery, James P. McGovern, f Cummings, Randy ‘‘Duke’’ John McHugh, Scott McInnis, Mike SINE DIE ADJOURNMENT Cunningham, Danny K. Davis, Jim McIntyre, Howard P. McKeon, Cynthia, Davis, Jo Ann Davis, Susan A. Davis, A. McKinney, Michael R. McNulty, Mr. THOMAS. Mr. Speaker, pursuant Thomas M. Davis, Nathan Deal, Peter Martin T. Meehan, Carrie P. Meek, to House Concurrent Resolution 295, I A. DeFazio, Diana DeGette, William D. Gregory W. Meeks, Robert Menendez, move that the House do now adjourn. Delahunt, Rosa L. DeLauro, Tom John L. Mica, Juanita Millender- The motion was agreed to. DeLay, Jim DeMint, Peter Deutsch, McDonald, Dan Miller, Gary G. Miller, The SPEAKER. Accordingly, pursu- Lincoln Diaz-Balart, Norman D. Dicks, George Miller, Jeff Miller, Patsy T. ant to the previous order of the House John D. Dingell, Lloyd Doggett, Calvin Mink, Alan B. Mollohan, Dennis Moore, of today, the House stands adjourned M. Dooley, John T. Doolittle, Michael James P. Moran, Jerry Moran, Con- until 4 p.m. on Friday, December 21, F. Doyle, David Dreier, John J. Dun- stance A. Morella, John P. Murtha, Sue 2001, unless it sooner has received a can, Jr., Jennifer Dunn, Chet Edwards, Wilkins Myrick, Jerrold Nadler, Grace message from the Senate transmitting Vernon J. Ehlers, Robert L. Ehrlich, Napolitano, Richard E. Neal, George, its passage without amendment of Jr., Jo Ann Emerson, Eliot L. Engel, R. Nethercutt, Jr., Robert W. Ney, House Joint Resolution 79, in which Phil English, Anna G. Eshoo, Bob Anne M. Northup, Eleanor Holmes Nor- case the House shall stand adjourned Etheridge, Lane Evans, Terry Everett, ton, Charlie Norwood, Jim Nussle, for the first session of the 107th Con- Eni F. H. Faleomavaega, Sam Farr, James L. Oberstar, David R. Obey, gress sine die pursuant to House Con- Chaka Fattah, Mike Ferguson, Bob Fil- John W. Olver, Solomon P. Ortiz, Tom current Resolution 295. ner, Jeff Flake, Ernie Fletcher, Mark Osborne, Doug Ose, C.L. Otter, Major Thereupon (at 5 o’clock and 8 min- Foley, J. Randy Forbes, Harold E. R. Owens, Michael G. Oxley, Frank utes p.m.), pursuant to House Concur- Ford, Jr., Vito Fossella, Barney Frank, Pallone, Jr., Bill Pascrell, Jr., Ed Pas- rent Resolution 295, the House ad- Rodney P. Frelinghuysen, Martin tor, Ron Paul, Donald M. Payne, Nancy journed under the previous order of the Frost, Elton Gallegly, Greg Ganske, Pelosi, Mike Pence, Collin C. Peterson, House until 4 p.m. on Friday, December George W. Gekas, Richard A. Gephardt, John E. Peterson, Thomas E. Petri, 21, 2001, unless it sooner has received a Jim Gibbons, Wayne T. Gilchrest, Paul David D. Phelps, Charles W. Pickering, message from the Senate transmitting E. Gillmor, Benjamin A. Gilman, Joseph R. Pitts, Todd Russell Platts, its passage without amendment of Charles A. Gonzalez, Virgil H. Goode, Richard W. Pombo, Earl Pomeroy, Rob House Joint Resolution 79, in which Jr., Bob Goodlatte, Bart Gordon, Por- Portman, David E. Price, Deborah case the House shall stand adjourned ter J. Goss, Lindsey O. Graham, Kay Pryce, Adam H. Putnam, Jack Quinn, for the first session of the 107th Con- Granger, Sam Graves, Gene Green, George Radanovich, Nick J. Rahall, II, gress sine die pursuant to House Con- Mark Green, James C. Greenwood, Jim Ramstad, Charles B. Rangel, Ralph current Resolution 295. Felix J. Grucci, Jr., Luis Gutierrez, Gil Regula, Dennis R. Rehberg, Silvestre f Gutknecht, Ralph M. Hall, Tony P. Reyes, Thomas M. Reynolds, Bob Hall, James V. Hansen, Jane Harman, Riley, Lynn N. Rivers, Ciro D. OATH FOR ACCESS TO CLASSIFIED Melissa A. Hart, J. Dennis Hastert, Rodriguez, Tim Roemer, Harold Rog- INFORMATION Alcee L. Hastings, Doc Hastings, Robin ers, Mike Rogers, Dana Rohrabacher, Under clause 13 of rule XXIII, the fol- Hayes, J. D. Hayworth, Joel Hefley, Ileana Ros-Lehtinen, Mike Ross, Ste- lowing Members executed the oath for Wally Herger, Baron P. Hill, Van ven R. Rothman, Marge Roukema, Lu- access to classified information: Hilleary, Earl F. Hilliard, Maurice D. cille Roybal-Allard, Edward R. Royce, Neil Abercrombie, Anı´bal Acevedo- Hinchey, Rube´n Hinojosa, David L. Bobby L. Rush, Paul Ryan, Jim Ruyn, Vila´ , Gary L. Ackerman, Robert B. Hobson, Joseph M. Hoeffel, Peter Hoek- Martin Olav Sabo, Loretta Sanchez, Aderholt, W. Todd Akin, Thomas H. stra, Tim Holden, Rush D. Holt, Mi- Bernard Sanders, Max Sandlin, Tom Allen, Robert E. Andrews, Richard K. chael M. Honda, Darlene Hooley, Ste- Sawyer, Jim Saxton, Bob Schaffer, Armey, Joe Baca, Spencer Bachus, phen Horn, John N. Hostettler, Amo Janice D. Schakowsky, Adam B. Schiff, Brian Baird, Richard H. Baker, John Houghton, Steny H. Hoyer, Kenny C. Edward L. Schrock, Robert C. Scott, F. Elias E. Baldacci, Tammy Baldwin, Hulshof, Duncan Hunter, Henry J. James Sensenbrenner, Jr., Jose´ E. Cass Ballenger, James A. Barcia, Bob Hyde, Jay Inslee, Johnny Isakson, Serrano, Pete Sessions, John B. Shad- Barr, Thomas M. Barrett, Roscoe G. Steve Israel, Darrell E. Issa, Ernest J. egg, E. Clay Shaw, Jr., Christopher Bartlett, Joe Barton, Charles F. Bass, Istook, Jr., Jesse L. Jackson, Jr., Shei- Shays, Brad Sherman, Don Sherwood, Xavier Becerra, Ken Bentsen, Doug Be- la Jackson-Lee, William J. Jefferson, John Shimkus, Ronnie Shows, Bill reuter, Shelly Berkley, Howard L. Ber- William L. Jenkins, Christopher John, Shuster, Rob Simmons, Michael K. man, Marion Berry, Judy Biggert, Mi- Eddie Bernice Johnson, Nancy L. John- Simpson, Joe Skeen, Ike Skelton, Lou- chael Bilirakis, Sanford D. Bishop, Jr., son, Sam Johnson, Timothy V. John- ise McIntosh Slaughter, Adam Smith, Rod R. Blagojevich, Earl Blumenauer, son, Stephanie Tubbs Jones, Walter B. Christopher H. Smith, Lamar S. Smith, Roy Blunt, Sherwood L. Boehlert, John Jones, Paul E. Kanjorski, Marcy Kap- Nick Smith, Vic Snyder, Hilda L. Solis, A. Boehner, Henry Bonilla, David E. tur, Ric Keller, Sue W. Kelly, Mark R. Mark E. Souder, Floyd Spence, John N. Bonior, Mary Bono, John Boozman, Kennedy, Patrick J. Kennedy, Brian D. Spratt, Jr., Fortney Pete Stark, Cliff Robert A. Borski, Leonard L. Boswell, Kerns, Dale E. Kildee, Carolyn C. Kil- Stearns, Charles W. Stenholm, Ted Rick Boucher, Allen Boyd, Kevin patrick, Ron Kind, Peter T. King, Jack Strickland, Bob Stump, Bart Stupak, Brady, Robert A. Brady, Corrine Kingston, Mark Steven Kirk, Gerald D. John E. Sununu, John E. Sweeney, Brown, Sherrod Brown, Henry E. Kleczka, Joe Knollengberg, Jim Kolbe, Thomas G. Tancredo, John S. Tanner, Brown, Jr., Ed Bryant, Richard Burr, Dennis J. Kucinich, John J. LaFalce, Ellen O. Tauscher, W. J. (Billy) Tauzin,

VerDate 10-DEC-2001 00:06 Dec 22, 2001 Jkt 099060 PO 00000 Frm 00048 Fmt 7634 Sfmt 0634 E:\CR\FM\A20DE7.048 pfrm02 PsN: H20PT1 December 20, 2001 CONGRESSIONAL RECORD — HOUSE H10961 Charles H. Taylor, Gene Taylor, Lee 4976. A letter from the Assistant Secretary U.S.C. 801(a)(1)(A); to the Committee on Gov- Terry, William M. Thomas, Bennie G. for Legislative Affairs, Department of State, ernment Reform. Thompson, Mike Thompson, Mac transmitting certification of a proposed li- 4988. A letter from the Deputy Associate Administrator, Office of Acquisition Policy, Thornberry, John R. Thune, Karen L. cense for the export of defense articles or de- fense export license for any major defense General Services Administration, transmit- Thurman, Todd Tiahrt, Patrick J. services sold under a contract to Japan ting the Administration’s final rule—Federal Tiberi, John F. Tierney, Patrick J. (Transmittal No. DTC 129–01), pursuant to 22 Acquisition Regulation; Definitions of Toomey, Edolphus Towns, James A. U.S.C. 2776(c); to the Committee on Inter- ‘‘Component’’ and ’’End Product’’ [FAC 2001– Traficant, Jr., Jim Turner, Mark Udall, national Relations. 02; FAR Case 2000–015; Item I] (RIN: 9000– Robert A. Underwood, Fred Upton, 4977. A letter from the Assistant Secretary AJ24) received December 19, 2001, pursuant to Nydia M. Velazquez, Peter J. Vis- for Legislative Affairs, Department of State, 5 U.S.C. 801(a)(1)(A); to the Committee on closky, David Vitter, Greg Walden, transmitting certification of a proposed li- Government Reform. cense for the export of defense articles or de- 4989. A letter from the Deputy Associate James T. Walsh, Zach Wamp, Maxine fense export license for any major defense Administrator, Office of Acquisition Policy, Waters, Wes Watkins, Diane E. Watson, services sold under a contract to Denmark General Services Administration, transmit- Melvin L. Watt, J.C. Watts, Jr., Henry and Belgium (Transmittal No. DTC 145–01), ting the Administration’s final rule—Federal A. Waxman, Anthony D. Weiner, Curt pursuant to 22 U.S.C. 2776(c); to the Com- Acquisition Regulation; Energy-Efficiency of Weldon, Dave Weldon, Jerry Weller, mittee on International Relations. Supplies and Services [FAC 2001–02; FAR Robert Wexler, Ed Whitfield, Roger F. 4978. A letter from the Assistant Secretary Case 1999–011; Item II] (RIN: 9000–AI71) re- Wicker, Heather Wilson, Joe Wilson, for Legislative Affairs, Department of State, ceived December 19, 2001, pursuant to 5 U.S.C. 801(a)(1)(A); to the Committee on Gov- Frank R. Wolf, Lynn C. Woolsey, David transmitting certification of a proposed Manufacturing License Agreement with ernment Reform. Wu, Albert Russell Wynn, C.W. Bill France (Transmittal No. DTC 050–01), pursu- 4990. A letter from the Deputy Associate Young, Don Young, ant to 22 U.S.C. 2776(d); to the Committee on Administrator, Office of Acquisition Policy, f International Relations. General Services Administration, transmit- 4979. A letter from the Assistant Secretary ting the Administration’s final rule—Federal EXECUTIVE COMMUNICATIONS, for Legislative Affairs, Department of State, Acquisition Regulation; Prompt Payment ETC. transmitting certification of a proposed and the Recovery of Overpayment [FAC 2001– Under clause 8 of rule XII, executive Manufacturing License Agreement with 02; FAR Case 1999–023; Item III] (RIN: 9000– communications were taken from the Japan (Transmittal No. DTC 126–01), pursu- AI89) received December 19, 2001, pursuant to 5 U.S.C. 801(a)(1)(A); to the Committee on Speaker’s table and referred as follows: ant to 22 U.S.C. 2776(d); to the Committee on International Relations. Government Reform. 4969. A letter from the Director, Office of 4980. A letter from the Assistant Secretary 4991. A letter from the Deputy Associate Management and Budget, transmitting noti- for Legislative Affairs, Department of State, Administrator, Office of Acquisition Policy, fication of the intention to modify the No- transmitting certification of a proposed li- General Services Administration, transmit- vember 9th release of funds from the Emer- cense for the export of defense articles or de- ting the Administration’s final rule—Federal gency Response Fund; to the Committee on fense export license for any major defense Acquisition Regulation; Javits-Wagner- Appropriations. services sold under a contract to Japan O’Day Act Subcontract Preference Under 4970. A letter from the Senior Paralegal, (Transmittal No. DTC 154–01), pursuant to 22 Service Contracts [FAC 2001–02; FAR Case Department of the Treasury, transmitting U.S.C. 2776(c)and 22 U.S.C. 2776(d); to the 1999–017; Item IV] (RIN: 9000–AI82) received the Department’s final rule—Risk-Based Committee on International Relations. December 19, 2001, pursuant to 5 U.S.C. Capital Guidelines; Capital Adequacy Guide- 4981. A letter from the Assistant Secretary 801(a)(1)(A); to the Committee on Govern- lines; Capital Maintenance: Capital Treat- for Legislative Affairs, Department of State, ment Reform. ment of Recourse, Direct Credit Substitutes transmitting notification of a proposed 4992. A letter from the Deputy Associate and Residual Interests in Asset transfer of major defense equipment with Administrator, Office of Acquisition Policy, Securitizations [Docket No. 2001–68] (RIN: Australia, Canada, Finland, Kuwait, Malay- General Services Administration, transmit- 1550–AB11) received December 17, 2001, pursu- sia, Spain, and Switzerland (Transmittal No. ting the Administration’s final rule—Federal ant to 5 U.S.C. 801(a)(1)(A); to the Committee RSAT–3–01), pursuant to 22 U.S.C. 2776(d); to Acquisition Regulation; Definition of Sub- on Financial Services. the Committee on International Relations. contract in FAR Subpart 15.4 [FAC 2001–02; 4971. A letter from the Assistant Secretary 4982. A letter from the Assistant Adminis- FAR Case 2000–017; Item VI] (RIN: 9000–AJ25) for Communications, Department of Com- trator Bureau for Legislative and Public Af- received December 19, 2001, pursuant to 5 merce, transmitting the Department’s final fairs, Agency for International Development, U.S.C. 801(a)(1)(A); to the Committee on Gov- rule—Notice of Solicitation of Grant Appli- transmitting a report on the Implementation ernment Reform. cations (RIN: 0660–ZA06) received December of the Support for Overseas Cooperative De- 4993. A letter from the Deputy Associate 19, 2001, pursuant to 5 U.S.C. 801(a)(1)(A); to velopment Act; to the Committee on Inter- Administrator, Office of Acquisition Policy, the Committee on Energy and Commerce. national Relations. General Services Administration, transmit- 4972. A letter from the Attorney-Advisor, 4983. A letter from the Assistant Secretary ting the Administration’s final rule—Federal NHTSA, Department of Transportation, for Export Administration, Department of Acquisition Regulation; North American In- transmitting the Department’s final rule— Commerce, transmitting the Department’s dustry Classification System [FAC 2001–02; Insurer Reporting Requirements; List of In- final rule—Entity List: Removal of Two Rus- FAR Case 2000–604; Item VII] (RIN: 9000–AI75) surers Required to File Reports [Docket No. sian Entities [Docket No. 010220046–1046–01] received December 19, 2001, pursuant to 5 NHTSA–2001–001; Notice 02] (RIN: 2127–AI07) (RIN: 0694–AC40) received December 19, 2001, U.S.C. 801(a)(1)(A); to the Committee on Gov- received November 16, 2001, pursuant to 5 pursuant to 5 U.S.C. 801(a)(1)(A); to the Com- ernment Reform. U.S.C. 801(a)(1)(A); to the Committee on En- mittee on International Relations. 4994. A letter from the Deputy Associate ergy and Commerce. 4984. A letter from the Special Assistant to Administrator, Office of Acquisition Policy, 4973. A letter from the Secretary, Depart- the President and Director, Office of Admin- General Services Administration, transmit- ment of Transportation, transmitting the istration, Executive Office of the President, ting the Administration’s final rule—Federal Department’s report entitled, ‘‘TREAD Fol- transmitting the White House personnel re- Acquisition Regulation; Iceland-Newly Des- low-Up Report’’; to the Committee on En- port for the fiscal year 2001, pursuant to 3 ignated Country Under the Trade Agree- ergy and Commerce. U.S.C. 113; to the Committee on Government ments Act [FAC 2001–02; FAR Case 2001–025; 4974. A letter from the Assistant Secretary Reform. Item VIII] (RIN: 9000–AJ26) received Decem- for Legislative Affairs, Department of State, 4985. A letter from the Deputy Adminis- ber 19, 2001, pursuant to 5 U.S.C. 801(a)(1)(A); transmitting certification of a proposed li- trator, Environmental Protection Agency, to the Committee on Government Reform. cense for the export of defense articles or de- transmitting a report on the Federal Activi- 4995. A letter from the Deputy Associate fense export license for any major defense ties Inventory Reform Act; to the Com- Administrator, Office of Acquisition Policy, services sold under a contract to Germany mittee on Government Reform. General Services Administration, transmit- (Transmittal No. DTC 158–01), pursuant to 22 4986. A letter from the Chief Financial Offi- ting the Administration’s final rule—Federal U.S.C. 2776(c); to the Committee on Inter- cer, Export-Import Bank, transmitting the Acquisition Regulation; Contractor Per- national Relations. 2001 annual report in compliance with the In- sonnel in the Procurement of Information 4975. A letter from the Assistant Secretary spector General Act Amendments of 1988, Technology Services [FAC 2001–02; FAR Case for Legislative Affairs, Department of State, pursuant to 5 app.; to the Committee on Gov- 2000–609; Item IX] (RIN: 9000–AJ11) received transmitting certification of a proposed li- ernment Reform. December 19, 2001, pursuant to 5 U.S.C. cense for the export of defense articles or 4987. A letter from the Deputy Associate 801(a)(1)(A); to the Committee on Govern- defenseexport license for any major defense Administrator, Office of Acquisition Policy, ment Reform. services sold under a contract to Japan General Services Administration, transmit- 4996. A letter from the Deputy Associate (Transmittal No. DTC 157–01), pursuant to 22 ting the Administration’s final rule—Federal Administrator, Office of Acquisition Policy, U.S.C. 2776(c); to the Committee on Inter- Acquisition Circular 2001–02; Introduction— General Services Administration, transmit- national Relations. received December 19, 2001, pursuant to 5 ting the Administration’s final rule—Federal

VerDate 10-DEC-2001 00:06 Dec 22, 2001 Jkt 099060 PO 00000 Frm 00049 Fmt 7634 Sfmt 0634 E:\CR\FM\A20DE7.049 pfrm02 PsN: H20PT1 H10962 CONGRESSIONAL RECORD — HOUSE December 20, 2001 Acquisition Regulation; Small Entity Com- 5008. A letter from the Program Analyst, 2120–AA64) received December 14, 2001, pursu- pliance Guide—received December 19, 2001, FAA, Department of Transportation, trans- ant to 5 U.S.C. 801(a)(1)(A); to the Committee pursuant to 5 U.S.C. 801(a)(1)(A); to the Com- mitting the Department’s final rule—Air- on Transportation and Infrastructure. mittee on Government Reform. worthiness Directives; Bombardier Model 5017. A letter from the Program Analyst, 4997. A letter from the General Counsel, Of- DHC–8–102, –103, –106, –201, –202, –301, –311, and FAA, Department of Transportation, trans- fice of Management and Budget, transmit- –315 Series Airplanes [Docket No. 2000–NM– mitting the Department’s final rule—Air- ting a report pursuant to the Federal Vacan- 348–AD; Amendment 39–124828; AD 2001–22–03] worthiness Directives; Boeing Model 737 Se- cies Reform Act of 1998; to the Committee on (RIN: 2120–AA64) received December 14, 2001, ries Airplanes [Docket No. 2000–NM–146–AD; Government Reform. pursuant to 5 U.S.C. 801(a)(1)(A); to the Com- Amendment 39–12458; AD 2001–20–10] (RIN: 4998. A letter from the Director, Office of mittee on Transportation and Infrastruc- 2120–AA64) received December 14, 2001, pursu- Personnel Management, transmitting a re- ture. ant to 5 U.S.C. 801(a)(1)(A); to the Committee port on the Federal Activities Inventory Re- 5009. A letter from the Program Analyst, on Transportation and Infrastructure. form Act; to the Committee on Government FAA, Department of Transportation, trans- 5018. A letter from the Program Analyst, Reform. mitting the Department’s final rule—Air- FAA, Department of Transportation, trans- 4999. A letter from the Acting Director, Of- worthiness Directives; Honeywell Inter- mitting the Department’s final rule—Air- fice of Surface Mining, Department of the In- national, Inc. LTP 101 Series Turboprop and worthiness Directives; Short Brothers Model terior, transmitting the Department’s final LTS101 Series Turboshaft Engines [Docket SD3 Series Airplanes [Docket No. 2001–NM– rule—Kentucky Regulatory Program [KY– No. 99–NE–16–AD; Amendment 39–12486; AD 175–AD; Amendment 39–12484; AD 2001–22–05] 221–FOR] received December 18, 2001, pursu- 2001–22–07] (RIN: 2120–AA64) received Decem- (RIN: 2120–AA64) received December 6, 2001, ant to 5 U.S.C. 801(a)(1)(A); to the Committee ber 6, 2001, pursuant to 5 U.S.C. 801(a)(1)(A); pursuant to 5 U.S.C. 801(a)(1)(A); to the Com- on Resources. to the Committee on Transportation and In- mittee on Transportation and Infrastruc- 5000. A letter from the Assistant Secretary, frastructure. ture. Department of the Interior, transmitting a 5010. A letter from the Program Analyst, 5019. A letter from the Program Analyst, proposed plan under the Indian Tribal Judg- FAA, Department of Transportation, trans- FAA, Department of Transportation, trans- ment Funds Act, 25 U.S.C. 1401 et seq., as mitting the Department’s final rule—Air- mitting the Department’s final rule—Air- amended, for the use and distribution of the worthiness Directives; Dassault Model worthiness Directives; Eurocopter France Red Lake Band of Chippewa Indians (Tribe) Mystere-Falcon 50, Mystere-Falcon 900, and Model EC 155B Helicopters [Docket No. 2001– judgment funds in Docket 189–C and the es- Falcon 900EX Series Airplanes [Docket No. SW–32–AD; Amendment 39–12509; AD 2001–23– crow funds remaining in Dockets 189–A and 2001–NM–10–AD; Amendment 39–12489; AD 11] (RIN: 2120–AA64) received December 14, 189–B; to the Committee on Resources. 2001–22–10] (RIN: 2120–AA64) received Decem- 2001, pursuant to 5 U.S.C. 801(a)(1)(A); to the 5001. A letter from the Assistant Attorney ber 6, 2001, pursuant to 5 U.S.C. 801(a)(1)(A); Committee on Transportation and Infra- structure. General, Department of Justice, transmit- to the Committee on Transportation and In- 5020. A letter from the Program Analyst, ting the Office for Victims of Crime’s Report frastructure. FAA, Department of Transportation, trans- to Congress on the Department’s implemen- 5011. A letter from the Program Analyst, mitting the Department’s final rule—Air- tation of the Victims of Crime Act, as FAA, Department of Transportation, trans- worthiness Directives; Overland Aviation amended, pursuant to 42 U.S.C. 10604(g); to mitting the Department’s final rule—Air- Services Fire Extinguishing System Bottle the Committee on the Judiciary. worthiness Directives; General Electric Com- Cartridges [Docket No. 98–CE–113–AD; 5002. A letter from the Director, Policy Di- pany GE90 Series Turbofan Engines [Docket Amendment 39–12493; AD 2001–22–14] (RIN: rectives and Instructions Branch, Depart- No. 99–NE–62–AD; Amendment 39–12473; AD 2120–AA64) received December 14, 2001, pursu- ment of Justice, transmitting the Depart- 2001–21–063] (RIN: 2120–AA64) received Decem- ant to 5 U.S.C. 801(a)(1)(A); to the Committee ment’s final rule— Adjustment of Certain ber 6, 2001, pursuant to 5 U.S.C. 801(a)(1)(A); Fees of the Immigration Examinations Fee on Transportation and Infrastructure. to the Committee on Transportation and In- 5021. A letter from the Program Analyst, Account [INS No. 2072–00] (RIN: 1115–AF61) frastructure. FAA, Department of Transportation, trans- received December 20, 2001, pursuant to 5 5012. A letter from the Program Analyst, mitting the Department’s final rule—Air- U.S.C. 801(a)(1)(A); to the Committee on the FAA, Department of Transportation, trans- worthiness Directives; Raytheon Aircraft Judiciary. mitting the Department’s final rule—Air- Company 33, T–34, 35, 36, 55, 56, 58, and 95 Se- 5003. A letter from the Director, Bureau of worthiness Directives; McDonnell Douglas ries Airplanes [Docket No. 2001–CE–35–AD; Transportation Statistics, transmitting the Model MD–11 Series Airplanes [Docket No. Amendment 39–12507; AD 2001–23–10] (RIN: Transportation Statistics Annual Report 2000–NM–337–AD; Amendment 39–12476; AD 2120–AA64) received December 14, 2001, pursu- 2000, pursuant to 49 U.S.C. 111(f); to the Com- 2001–21–05] (RIN: 2120–AA64) received Decem- ant to 5 U.S.C. 801(a)(1)(A); to the Committee mittee on Transportation and Infrastruc- ber 6, 2001, pursuant to 5 U.S.C. 801(a)(1)(A); on Transportation and Infrastructure. ture. to the Committee on Transportation and In- 5022. A letter from the Program Analyst, 5004. A letter from the Assistant Secretary, frastructure. FAA, Department of Transportation, trans- Department of the Interior, transmitting the 5013. A letter from the Program Analyst, mitting the Department’s final rule—Air- Department’s final rule—Distribution of Fis- FAA, Department of Transportation, trans- worthiness Directives; McDonnell Douglas cal Year 2002 Indian Reservation Roads mitting the Department’s final rule—Air- Model 717 Series Airplanes [Docket No. 2001– Funds (RIN: 1076–AE28) received December worthiness Directives; Boeing Model 767 Se- NM–230–AD; Amendment 39–12437; AD 2001– 20, 2001, pursuant to 5 U.S.C. 801(a)(1)(A); to ries Airplanes [Docket No. 2001–NM–258–AD; 18–11] (RIN: 2120–AA64) received October 4, the Committee on Transportation and Infra- Amendment 39–12510; AD 2001–17–28 R1] (RIN: 2001, pursuant to 5 U.S.C. 801(a)(1)(A); to the structure. 2120–AA64) received December 14, 2001, pursu- Committee on Transportation and Infra- 5005. A letter from the Program Analyst, ant to 5 U.S.C. 801(a)(1)(A); to the Committee structure. FAA, Department of Transportation, trans- on Transportation and Infrastructure. 5023. A letter from the Program Analyst, mitting the Department’s final rule—Air- 5014. A letter from the Program Analyst, FAA, Department of Transportation, trans- worthiness Directives; Boeing Model 767 Se- FAA, Department of Transportation, trans- mitting the Department’s final rule—Anti- ries Airplanes [Docket No. 2000–NM–116–AD; mitting the Department’s final rule—Air- drug and Alcohol Misuse Prevention Pro- Amendment 39–12480; AD 2001–12–08 R1] (RIN: worthiness Directives; Boeing Model 737–100, grams for Personnel Engaged in Specified 2120–AA64) received December 6, 2001, pursu- –200, –300, –400, and –500 Series Airplanes; and Aviation Activities [Docket No. FAA–2000– ant to 5 U.S.C. 801(a)(1)(A); to the Committee Model 747, 757, 767, and 777 Series Airplanes 8431; Amendment No. 121–287] received No- on Transportation and Infrastructure. [Docket No. 2000–NM–395–AD; Amendment vember 19, 2001, pursuant to 5 U.S.C. 5006. A letter from the Program Analyst, 39–12492; AD 2001–22–13] (RIN: 2120–AA64) re- 801(a)(1)(A); to the Committee on Transpor- FAA, Department of Transportation, trans- ceived December 14, 2001, pursuant to 5 tation and Infrastructure. mitting the Department’s final rule—Air- U.S.C. 801(a)(1)(A); to the Committee on 5024. A letter from the Program Analyst, worthiness Directives; Boeing Model B–17E, Transportation and Infrastructure. FAA, Department of Transportation, trans- F, and G Airplanes [Docket No. 95–NM–15– 5015. A letter from the Program Analyst, mitting the Department’s final rule—Air- AD; Amendment 39–12485; AD 2001–22–06] FAA, Department of Transportation, trans- worthiness Directives; Bell Helicopter Tex- (RIN: 2120–AA64) received December 6, 2001, mitting the Department’s final rule—Air- tron Canada Model 222, 222B, 222U, and 230 pursuant to 5 U.S.C. 801(a)(1)(A); to the Com- worthiness Directives; Boeing Model 747 Se- Helicopters [Docket No. 2001–SW–49–AD; mittee on Transportation and Infrastruc- ries Airplanes [Docket No. 2000–NM–317–AD; Amendment 39–12470; AD 2001–19–52] (RIN: ture. Amendment 39–12478; AD 2001–21–07] (RIN: 2120–AA64) received December 14, 2001, pursu- 5007. A letter from the Program Analyst, 2120–AA64) received December 14, 2001, pursu- ant to 5 U.S.C. 801(a)(1)(A); to the Committee FAA, Department of Transportation, trans- ant to 5 U.S.C. 801(a)(1)(A); to the Committee on Transportation and Infrastructure. mitting the Department’s final rule—Air- on Transportation and Infrastructure. 5025. A letter from the Program Analyst, worthiness Directives; Boeing Model 747 Se- 5016. A letter from the Program Analyst, FAA, Department of Transportation, trans- ries Airplanes [Docket No. 2000–NM–220–AD; FAA, Department of Transportation, trans- mitting the Department’s final rule—Air- Amendment 39–12483; AD 2001–22–04] (RIN: mitting the Department’s final rule—Air- worthiness Directives; Eurocopter France 2120–AA64) received December 6, 2001, pursu- worthiness Directives; Boeing Model 757 Se- Model SA341G, SA342J, and SA–360C Heli- ant to 5 U.S.C. 801(a)(1)(A); to the Committee ries Airplanes [Docket No. 98–NM–225–AD; copters [Docket No. 2001–SW–48–AD; Amend- on Transportation and Infrastructure. Amendment 39–12460; AD 2001–20–12] (RIN: ment 39–12508; AD 2001–19–51] (RIN: 2120–

VerDate 10-DEC-2001 00:06 Dec 22, 2001 Jkt 099060 PO 00000 Frm 00050 Fmt 7634 Sfmt 0634 E:\CR\FM\L20DE7.000 pfrm02 PsN: H20PT1 December 20, 2001 CONGRESSIONAL RECORD — HOUSE H10963

AA64) received December 14, 2001, pursuant cation on the status of the Department’s an- RODRIGUEZ, Mr. BALDACCI, Mr. FARR to 5 U.S.C. 801(a)(1)(A); to the Committee on nual report on the current and future mili- of California, Mr. LANGEVIN, Mr. Transportation and Infrastructure. tary power of the People’s Republic of China; DELAHUNT, Mr. UDALL of Colorado, 5026. A letter from the Program Analyst, jointly to the Committees on Armed Serv- Mr. HINOJOSA, Mr. MCINTYRE, Mr. FAA, Department of Transportation, trans- ices and International Relations. TOWNS, Mr. OBERSTAR, Mr. GONZALEZ, mitting the Department’s final rule—Air- 5035. A letter from the Assistant Secretary Mr. MCGOVERN, Ms. WOOLSEY, Mr. worthiness Directives; Rolls-Royce plc. for Legislative Affairs, Department of State, STUPAK, Mr. ENGEL, Mr. LARSEN of RB211 535 Turbofan Engines, Correction transmitting a report on the Progress made Washington, Ms. SCHAKOWSKY, Mr. [Docket No. 2001–NE–22; Amendment 39–12445; toward opening the United States Embassy PASTOR, Ms. SOLIS, Mr. MARKEY, Mrs. AD 2001–19–05] (RIN: 2120–AA64) received De- in Jerusalem and notification of Suspension MCCARTHY of New York, Mr. FATTAH, cember 14, 2001, pursuant to 5 U.S.C. of Limitations Under the Jerusalem Em- Mr. BARCIA, Ms. MCCOLLUM, Mr. 801(a)(1)(A); to the Committee on Transpor- bassy Act (Presidential Determination No. ETHERIDGE, Mr. SCHIFF, Mr. LYNCH, tation and Infrastructure. 2002–05), pursuant to Public Law 104—45, sec- Mr. HINCHEY, Mr. DAVIS of Illinois, 5027. A letter from the Program Analyst, tion 6 (109 Stat. 400); jointly to the Commit- Mr. FRANK, Mr. MALONEY of Con- FAA, Department of Transportation, trans- tees on International Relations and Appro- necticut, Mr. CARDIN, Mrs. LOWEY, mitting the Department’s final rule—Air- priations. Mr. HOLDEN, Mr. SERRANO, Mr. DICKS, worthiness Directives; Raytheon Model 5036. A letter from the Administrator, U.S. Mr. SABO, Mr. MEEHAN, Mr. NEAL of Beech 400, 400A and 400T Series Airplanes, Agency for International Development, Massachusetts, Mr. OLVER, Ms. Model Mitsubishi MU–300 Airplanes, and transmitting the quarterly update of the re- HOOLEY of Oregon, Mr. MORAN of Vir- Model Beech MU–300–10 Airplanes [Docket port required by Section 653(a) of the For- ginia, Mr. CLYBURN, Mr. UNDERWOOD, No. 2001–NM–347–AD; Amendment 39–12528; eign Assistance Act of 1961, as amended, en- Mr. LAMPSON, Mr. PRICE of North AD 2001–24–11] (RIN: 2120–AA64) received De- titled ‘‘Development Assistance and Child Carolina, Mr. LIPINSKI, Mr. CRAMER, cember 14, 2001, pursuant to 5 U.S.C. Survival/Diseases Program Allocations-FY Mr. FALEOMAVAEGA, Mrs. JONES of 801(a)(1)(A); to the Committee on Transpor- 2001’’; jointly to the Committees on Inter- Ohio, Mrs. THURMAN, Mr. ACKERMAN, tation and Infrastructure. national Relations and Appropriations. Mr. HOYER, Mr. CUMMINGS, Mr. 5028. A letter from the Program Analyst, 5037. A letter from the Executive Director, DEUTSCH, Mr. BRADY of Pennsylvania, FAA, Department of Transportation, trans- Federal Retirement Thrift Investment Mr. KENNEDY of Rhode Island, Mr. mitting the Department’s final rule—Air- Board, transmitting a proposed bill to amend PALLONE, Mr. KUCINICH, Mr. worthiness Directives; Dassault Model the Federal Employees’ Retirement System BLAGOJEVICH, Mr. FORD, Mr. THOMP- Mystere-Falcon 50 Series Airplanes [Docket Act of 1986; jointly to the Committees on SON of Mississippi, Ms. SLAUGHTER, No. 2001–NM–330–AD; Amendment 39–12519; Government Reform and the Judiciary. Mr. FROST, Ms. CARSON of Indiana, AD 2001–24–03] (RIN: 2120–AA64) received De- Mr. BAIRD, and Mr. SAWYER): cember 14, 2001, pursuant to 5 U.S.C. f H.R. 3555. A bill to prevent, prepare for, 801(a)(1)(A); to the Committee on Transpor- PUBLIC BILLS AND RESOLUTIONS and respond to the threat of terrorism in tation and Infrastructure. America, and for other purposes; to the Com- 5029. A letter from the Program Analyst, Under clause 2 of rule XII, public mittee on Energy and Commerce, and in ad- FAA, Department of Transportation, trans- bills and resolutions were introduced dition to the Committees on Transportation mitting the Department’s final rule—Air- and severally referred, as follows: and Infrastructure, Education and the Work- worthiness Directives; Aeromot-Industria By Mr. SHERMAN (for himself, Mr. force, Government Reform, Ways and Means, Mecanico Metalurgica Itda. Models AMT–100 Armed Services, International Relations, In- MALONEY of Connecticut, Mr. WAX- and AMT–200 Powered Sailplanes [Docket telligence (Permanent Select), Financial MAN, Mr. CROWLEY, Mr. MCNULTY, No. 2001–CE–40–AD; Amendment 39–12515; AD Services, and the Judiciary, for a period to Mr. FROST, Mr. KUCINICH, Mr. 2001–23–16] (RIN: 2120–AA64) received Decem- be subsequently determined by the Speaker, HOEFFEL, Mr. OWENS, Ms. WATSON, ber 14, 2001, pursuant to 5 U.S.C. 801(a)(1)(A); in each case for consideration of such provi- Mr. UDALL of New Mexico, and Mrs. to the Committee on Transportation and In- sions as fall within the jurisdiction of the CAPPS): frastructure. committee concerned. H.R. 3552. A bill to establish a National 5030. A letter from the Program Analyst, By Ms. WATERS (for herself and Mr. Foundation for the Study of Holocaust As- FAA, Department of Transportation, trans- MICA): mitting the Department’s final rule—Modi- sets; to the Committee on Financial Serv- H.R. 3556. A bill to prohibit assistance for fication of the Dimensions of the Grand Can- ices. Afghanistan unless the national government yon National Park Special Flight Rules Area By Mr. THOMAS (for himself, Mr. of Afghanistan undertakes efforts to control and Flight Free Zones [Docket No. FAA– CRANE, and Mr. DREIER): illegal drugs in Afghanistan, and for other 1999–5926] (RIN: 2120–AG74) received Decem- H.R. 3553. A bill to provide for the exten- purposes; to the Committee on International ber 14, 2001, pursuant to 5 U.S.C. 801(a)(1)(A); sion of nondiscriminatory treatment (nor- Relations. to the Committee on Transportation and In- mal trade relations treatment) to the prod- By Mr. THOMAS: frastructure. ucts of the Russian Federation; to the Com- H.R. 3557. A bill to repeal the antidumping 5031. A letter from the Program Analyst, mittee on Ways and Means. provisions contained in the Act of September FAA, Department of Transportation, trans- By Mr. OSE: 8, 1916; to the Committee on the Judiciary. mitting the Department’s final rule— H.R. 3554. A bill to transfer to the State of By Mr. RAHALL (for himself, Mr. Flightcrew Compartment Access and Door California certain Federal land in Yolo and GILCHREST, and Mr. UNDERWOOD): Designs [Docket No. FAA–2001–10770; SFAR Solano Counties, California, to provide for H.R. 3558. A bill to protect, conserve, and 92–2] (RIN: 2120–AH54) received December 10, the establishment of a wildlife area on that restore native fish, wildlife, and their nat- 2001, pursuant to 5 U.S.C. 801(a)(1)(A); to the land, and for other purposes; to the Com- ural habitats on Federal lands through coop- Committee on Transportation and Infra- mittee on Resources. erative, incentive-based grants to control, structure. By Mr. MENENDEZ (for himself, Mr. mitigate, and eradicate harmful nonnative 5032. A letter from the Program Analyst, GEPHARDT, Ms. HARMAN, Mr. SCOTT, species, and for other purposes; to the Com- FAA, Department of Transportation, trans- Mr. SKELTON, Mr. BORSKI, Mr. mittee on Resources. mitting the Department’s final rule—Air- PASCRELL, Mr. BISHOP, Mrs. By Mr. VISCLOSKY (for himself and worthiness Directives; Airbus Model A300 B4– TAUSCHER, Mr. TURNER, Mr. Mr. QUINN): 600, B4–600R and F4–600R (Collectively Called COSTELLO, Ms. ROYBAL-ALLARD, Mr. H.R. 3559. A bill to amend the Emergency A300–600) Series Airplanes; and Model A310 HONDA, Ms. JACKSON-LEE of Texas, Steel Loan Guarantee Act of 1999 to revise Series Airplanes [Docket No. 2001–NM–349– Ms. PELOSI, Ms. DELAURO, Mr. CON- eligibility and other requirements for loan AD; Amendment 39–12526; AD 2001–23–51] YERS, Mr. TIERNEY, Mr. UDALL of New guarantees under that Act, and for other (RIN: 2120–AA64) received December 14, 2001, Mexico, Mr. ISRAEL, Mr. BACA, Mr. purposes; to the Committee on Financial pursuant to 5 U.S.C. 801(a)(1)(A); to the Com- LARSON of Connecticut, Mr. BERMAN, Services. mittee on Transportation and Infrastruc- Mr. THOMPSON of California, Ms. KAP- By Mr. YOUNG of Alaska: ture. TUR, Mrs. CHRISTENSEN, Mr. HOEFFEL, H.R. 3560. A bill to require the use of cer- 5033. A letter from the Program Analyst, Ms. MILLENDER-MCDONALD, Mr. tain vessels for laying, servicing, and main- FAA, Department of Transportation, trans- SHERMAN, Mr. LANTOS, Mr. ORTIZ, Ms. taining Federal submarine cables; to the mitting the Department’s final rule— BERKLEY, Ms. MCCARTHY of Missouri, Committee on Armed Services, and in addi- Flightcrew Compartment Access and Door Mr. HASTINGS of Florida, Ms. KIL- tion to the Committee on Transportation Designs [Docket No. FAA–2001–10770; SFAR PATRICK, Mr. HOLT, Mr. GREEN of and Infrastructure, for a period to be subse- 92–1] (RIN: 2120–AH52) received December 10, Texas, Mr. OWENS, Ms. LEE, Mr. quently determined by the Speaker, in each 2001, pursuant to 5 U.S.C. 801(a)(1)(A); to the ACEVEDO-VILA, Mr. JACKSON of Illi- case for consideration of such provisions as Committee on Transportation and Infra- nois, Mr. ROTHMAN, Mr. SANDLIN, Mr. fall within the jurisdiction of the committee structure. CROWLEY, Mr. KILDEE, Mrs. MALONEY concerned. 5034. A letter from the Deputy Secretary, of New York, Mrs. CAPPS, Mr. REYES, By Mr. LINDER (for himself, Mr. DEAL Department of Defense, transmitting notifi- Mr. ALLEN, Mr. WYNN, Mr. of Georgia, and Mr. CALVERT):

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H.R. 3561. A bill to establish the Twenty- vania, Mr. OSBORNE, Mr. MCINTYRE, By Mr. GILCHREST (for himself and First Century Policy Commission; to the Mr. SANDLIN, Mr. BASS, Mr. GORDON, Mr. UNDERWOOD): Committee on Resources, and in addition to Mr. MCINNIS, Mr. LATHAM, Mr. GREEN H.R. 3577. A bill to reauthorize the Coastal the Committee on Transportation and Infra- of Wisconsin, Mr. PETRI, Mr. HILL- Zone Management Act of 1972, and for other structure, for a period to be subsequently de- IARD, Mrs. EMERSON, Mr. TOWNS, Mr. purposes; to the Committee on Resources. termined by the Speaker, in each case for SCHAFFER, Mrs. CUBIN, Mr. TERRY, By Mr. GREEN of Wisconsin (for him- consideration of such provisions as fall with- and Mr. TURNER): self and Mr. RYAN of Wisconsin): in the jurisdiction of the committee con- H.R. 3569. A bill to amend title XVIII of the H.R. 3578. A bill to require the Secretary of cerned. Social Security Act to establish a minimum Agriculture to use the Department of Agri- By Mr. ACKERMAN: geographic cost-of-practice index value for culture’s preferred Option 1B as the price H.R. 3562. A bill to amend title 49, United physicians’ services furnished under the structure for Class I fluid milk under Federal States Code, to authorize the Under Sec- Medicare Program; to the Committee on En- milk marketing orders, to provide emer- retary of Transportation for Security to es- ergy and Commerce, and in addition to the gency market loss payments to dairy pro- tablish a program to permit Federal, State, Committee on Ways and Means, for a period ducers for any calendar year quarter in and local law enforcement officers to be to be subsequently determined by the Speak- which the national average price for Class III trained to participate in the Federal air mar- er, in each case for consideration of such pro- milk under Federal milk marketing orders is shal program as volunteers, and for other visions as fall within the jurisdiction of the less than a target price of $11.50 per hundred- purposes; to the Committee on Transpor- committee concerned. weight, and for other purposes; to the Com- tation and Infrastructure. By Mr. BEREUTER: mittee on Agriculture. By Mr. ANDREWS: H.R. 3570. A bill to direct the Secretary of By Mr. GREEN of Wisconsin: H.R. 3563. A bill to promote and facilitate the Interior to monitor the health of the H.R. 3579. A bill to increase community ca- expansion of coverage under group health Missouri River and measure biological, pacity and commitment to promote and sup- plans, and for other purposes; to the Com- chemical, and physical responses to changes port local comprehensive strategies and mittee on Education and the Workforce, and in river management and other significant traceable actions to prevent and reduce in addition to the Committee on Ways and variables; to the Committee on Resources, crime, violence, and substance abuse through Means, for a period to be subsequently deter- and in addition to the Committee on Trans- prevention, education, treatment, law en- mined by the Speaker, in each case for con- portation and Infrastructure, for a period to forcement, and continuing care activities; to sideration of such provisions as fall within be subsequently determined by the Speaker, the Committee on the Judiciary. the jurisdiction of the committee concerned. in each case for consideration of such provi- By Mr. GREENWOOD (for himself, Ms. By Mr. BARR of Georgia: sions as fall within the jurisdiction of the ESHOO, Mr. UPTON, Mr. PALLONE, Mr. H.R. 3564. A bill to authorize the limited committee concerned. DEUTSCH, Mr. TOWNS, Mr. BRYANT, use of military tribunals absent a war de- By Mr. BERRY (for himself, Mrs. and Mr. BARTON of Texas): clared by Congress in cases arising out of MYRICK, Mr. CRAMER, Mr. GRAHAM, H.R. 3580. A bill to amend the Federal acts of international terrorism committed in Mr. SPRATT, Mr. BROWN of South Food, Drug, and Cosmetic Act to make im- the United States; to the Committee on the Carolina, Mr. KERNS, Mr. HAYES, Mr. provements in the regulation of medical de- Judiciary, and in addition to the Committee EVANS, Mr. STUPAK, Ms. KAPTUR, Mr. vices, and for other purposes; to the Com- on Armed Services, for a period to be subse- ENGLISH, and Mr. TURNER): mittee on Energy and Commerce. quently determined by the Speaker, in each H.R. 3571. A bill to amend the Tariff Act of By Ms. HARMAN (for herself and Ms. case for consideration of such provisions as 1930 to provide for an expedited antidumping PELOSI): fall within the jurisdiction of the committee investigation when imports increase materi- H.R. 3581. A bill to authorize the Secretary concerned. ally from new suppliers after an antidumping of Health and Human Services to award on a By Mr. BARRETT: order has been issued, and to amend the pro- competitive basis grants to public and pri- H.R. 3565. A bill to amend title XIX to in- vision relating to adjustments to export vate entities to establish or expand teenage crease the Federal medical assistance per- price and constructed export price; to the pregnancy prevention programs; to the Com- centage under the Medicaid Program for Committee on Ways and Means. mittee on Energy and Commerce. nursing facilities with a high proportion of By Mr. BURR of North Carolina (for By Mr. HOUGHTON (for himself, Mr. Medicaid patients; to the Committee on En- himself and Ms. ESHOO): NEAL of Massachusetts, and Mr. ergy and Commerce. H.R. 3572. A bill to amend title XVIII of the ENGLISH): By Mr. BEREUTER (for himself, Mrs. Social Security Act to provide for coverage H.R. 3582. A bill to amend the Internal Rev- CLAYTON, Mr. NETHERCUTT, Mr. SAW- of remote monitoring services under the enue Code of 1986 to disregard $30,000,000 of YER, Mr. OSBORNE, Mr. HALL of Ohio, Medicare Program; to the Committee on En- capital expenditures in applying $10,000,000 Mrs. JOHNSON of Connecticut, Mr. ergy and Commerce, and in addition to the limit on qualified small issue bonds; to the DOGGETT, Mr. EHLERS, Mr. GEORGE Committee on Ways and Means, for a period Committee on Ways and Means. MILLER of California, Mr. SHAYS, Ms. to be subsequently determined by the Speak- By Mr. ISRAEL: MILLENDER-MCDONALD, Mr. SNYDER, er, in each case for consideration of such pro- H.R. 3583. A bill to amend the Internal Rev- Mr. WAXMAN, Mr. PAYNE, and Ms. visions as fall within the jurisdiction of the enue Code of 1986 to provide that no organi- BALDWIN): committee concerned. zation providing support to terrists or ter- H.R. 3566. A bill to provide for the estab- By Mr. CAMP (for himself, Mr. FOLEY, rorist organizations shall be qualified for ex- lishment of a trust fund at the International and Mr. RANGEL): Bank for Reconstruction and Development H.R. 3573. A bill to amend the Internal Rev- emption from tax under 501(a) of such Code; to address long-term food production and enue Code of 1986 to modify certain rules ap- to the Committee on Ways and Means. rural development needs in Afghanistan and plying to individuals employed in the enter- By Mrs. JOHNSON of Connecticut (for the Central Asian Republics; to the Com- tainment industry; to the Committee on herself, Mr. CARDIN, Mr. ISRAEL, Mr. mittee on Financial Services. Ways and Means. SMITH of New Jersey, Mr. HAYWORTH, By Ms. PRYCE of Ohio (for herself, Mr. By Mr. COYNE: Mr. RAMSTAD, Mr. SAM JOHNSON of ARMEY, Mr. CAMP, Mr. DELAY, Ms. H.R. 3574. A bill to amend the Internal Rev- Texas, Mr. SHAW, Mr. ENGLISH, Mr. DUNN, Mr. HALL of Texas, Mr. POM- enue Code of 1986 to change the calculation LOBIONDO, Mr. FERGUSON, Ms. DUNN, EROY, and Mr. SESSIONS): and simplify the administration of the Mr. CRANE, Mr. SAXTON, Mr. CAMP, H.R. 3567. A bill to amend the Internal Rev- earned income tax credit; to the Committee Mrs. MCCARTHY of New York, Mr. enue Code of 1986 and the Surface Mining on Ways and Means. PASCRELL, Mr. HERGER, Mr. SIMMONS, Control and Reclamation Act of 1977 to pro- By Ms. DUNN: Mr. MCCRERY, Mr. LARSEN of Wash- tect the health benefits of retired miners and H.R. 3575. A bill to amend the Internal Rev- ington, and Mr. DICKS): to restore stability and equity to the financ- enue Code of 1986 to repeal the disallowance H.R. 3584. A bill to amend title XVIII of the ing of the United Mine Workers of America of the marital deduction where the spouse is Social Security Act to improve payments Combined Benefit Fund and 1992 Benefit Plan not a United States citizen for purposes of and regulation under the MedicareChoice by providing additional sources of revenue to estate and gift taxes; to the Committee on Program; to the Committee on Ways and the Fund and Plan, and for other purposes; Ways and Means. Means, and in addition to the Committee on to the Committee on Ways and Means. By Mr. FALEOMAVAEGA: Energy and Commerce, for a period to be By Mr. BEREUTER: H.R. 3576. A bill to provide that American subsequently determined by the Speaker, in H.R. 3568. A bill to provide assistance to Samoa hold a primary election when more each case for consideration of such provi- address long-term food production and rural than 2 eligible individuals file for candidacy sions as fall within the jurisdiction of the development needs in Afghanistan and the to be elected to the office of Delegate rep- committee concerned. Central Asian Republics; to the Committee resenting American Samoa in the United By Mr. KLECZKA (for himself and Mr. on International Relations. States House of Representatives, and to pro- STARK): By Mr. BEREUTER (for himself, Mr. vide that active duty members of the mili- H.R. 3585. A bill to amend title XVIII of the FOLEY, Mr. HALL of Texas, Mr. tary be able to fully pariticipate in Federal Social Security Act to provide for coverage MCHUGH, Mr. FROST, Mr. HEFLEY, Mr. elections in American Samoa; to the Com- under the Medicare Program of substitute LEACH, Mr. PETERSON of Pennsyl- mittee on Resources. adult day care services; to the Committee on

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Ways and Means, and in addition to the Com- UDALL of New Mexico, Ms. HOOLEY of WEINER, Mr. DAVIS of Illinois, Mr. mittee on Energy and Commerce, for a pe- Oregon, Ms. SCHAKOWSKY, Ms. HILLIARD, Mr. MCNULTY, Mrs. riod to be subsequently determined by the SLAUGHTER, Mr. MORAN of Virginia, MCCARTHY of New York, Mr. MCGOV- Speaker, in each case for consideration of Mr. OWENS, Mrs. CHRISTENSEN, Mrs. ERN, Ms. KILPATRICK, Ms. ROYBAL-AL- such provisions as fall within the jurisdic- JONES of Ohio, Ms. MCKINNEY, Ms. LARD, and Ms. CARSON of Indiana): tion of the committee concerned. SOLIS, Mrs. CAPPS, Mr. PALLONE, Mr. H.R. 3602. A bill to amend title XVIII of the By Mr. LEWIS of Kentucky: WEXLER, Mr. HOLT, and Mrs. MINK of Soical Security Act to provide for reim- H.R. 3586. A bill to amend the Internal Rev- Hawaii): bursement of certified midwife services, to enue Code of 1986 to clarify the small issuer H.R. 3595. A bill to amend Federal crime provide for more equitable reimbursement exception from the tax-exempt bond arbi- grant programs relating to domestic vio- rates certified nurse-midwife services, and trage rebate requirement; to the Committee lence to encourage States and localities to for other purposes; to the Committee on on Ways and Means. implement gun confiscation policies, reform Ways and Means, and in addition to the Com- By Mr. MALONEY of Connecticut: stalking laws, create integrated domestic vi- mittee on Energy and Commerce, for a pe- H.R. 3587. A bill to amend title 10, United olence courts, and hire additional personnel riod to be subsequently determined by the States Code, to provide for the award of a for entering protection orders, and for other Speaker, in each case for consideration of medal called the ‘‘Crimson Cross’’ to mem- purposes; to the Committee on the Judici- such provisions as fall within the jurisdic- bers of the Armed Forces who, while on ac- ary. tion of the committee concerned. tive duty, suffered a qualifying injury or ill- By Mr. RYAN of Wisconsin (for himself By Mr. VITTER: ness in connection with combatant activities and Mr. GREEN of Wisconsin): H.R. 3603. A bill to amend the Internal Rev- during a period of war or as a result of hos- H.R. 3596. A bill to amend the Clean Air enue Code of 1986 to provide a refundable tile actions against the United States and Act requirements relating to gasoline to pre- credit of $500 to public safety volunteers; to who are not eligible to receive the Purple vent future supply shortages and price spikes the Committee on Ways and Means. Heart as a result of such injury or illness; to in the gasoline market, and for other pur- By Mr. VITTER: the Committee on Armed Services. poses; to the Committee on Energy and Com- H.R. 3604. A bill to amend title 10, United By Mr. MALONEY of Connecticut: merce. States Code, to improve the ability of stu- H.R. 3588. A bill to provide bonus funds to By Ms. SLAUGHTER (for herself, Mr. dents at institutions of higher education to local educational agencies that adopt a pol- HINCHEY, Mr. DEFAZIO, and Mr. enroll in units of the Senior Reserve Officer icy to end social promotion; to the Com- KUCINICH): Training Corps; to the Committee on Armed mittee on Education and the Workforce. H.R. 3597. A bill to prohibit the Secretary Services, and in addition to the Committee By Mr. MALONEY of Connecticut: of Defense from purchasing equipment con- on Education and the Workforce, for a period H.R. 3589. A bill to direct the Secretary of taining electronic components that are not to be subsequently determined by the Speak- Health and Human Services to award grants manufactured in the United States; to the er, in each case for consideration of such pro- to eligible entities to implement and evalu- Committee on Armed Services. visions as fall within the jurisdiction of the ate demonstrations of models and best prac- By Mr. SMITH of Michigan (for himself committee concerned. tices in nursing care and to develop innova- and Mr. WELDON of Pennsylvania): By Mr. VITTER: tive strategies for retention of professional H.R. 3598. A bill to require the induction H.R. 3605. A bill to amend title 44, United nurses; to the Committee on Energy and into the Armed Forces of young men reg- States Code, to provide for the suspension of Commerce. istered under the Military Selective Service fines under certain circumstances for first- By Mrs. MALONEY of New York: Act, and to authorize young women to volun- time paperwork violations by small-business H.R. 3590. A bill to require operators of teer, to receive basic military training and concerns; to the Committee on Government electronic marketplaces to disclose the own- education for a period of up to one year; to Reform, and in addition to the Committee on ership and financial arrangements of such the Committee on Armed Services. Small Business, for a period to be subse- marketplaces to market participants, and By Mr. SOUDER (for himself, Mr. quently determined by the Speaker, in each for other purposes; to the Committee on En- SCOTT, Mr. GREEN of Wisconsin, Mr. case for consideration of such provisions as ergy and Commerce. EDWARDS, Mr. NADLER, and Mr. fall within the jurisdiction of the committee By Mr. MICA (for himself, Mr. DELAY, KIRK): concerned. Mr. GRAVES, Mr. HEFLEY, Mr. DAN H.R. 3599. A bill to promote charitable giv- By Mr. WALDEN of Oregon: MILLER of Florida, Mr. KINGSTON, Mr. ing, and for other purposes; to the Com- H.R. 3606. A bill to authorize the Bureau of LINDER, Mr. COLLINS, Mr. POMBO, Mr. mittee on Ways and Means, and in addition Reclamation to participate in the rehabilita- PETRI, and Mr. STEARNS): to the Committee on Education and the tion of the Wallowa Lake Dam in Oregon, H.R. 3591. A bill to provide for the competi- Workforce, for a period to be subsequently and for other purposes; to the Committee on tive operation of the Northeast rail corridor determined by the Speaker, in each case for Resources. and Autotrain using State and private sector consideration of such provisions as fall with- By Ms. WATERS: initiatives; to the Committee on Transpor- in the jurisdiction of the committee con- H.R. 3607. A bill to amend the Truth in tation and Infrastructure. cerned. Lending Act to strengthen consumer protec- By Mr. MOORE (for himself and Ms. By Mr. TANCREDO (for himself, Mr. tions and prevent predatory loan practices, HART): GOODE, Mr. DEAL of Georgia, Mr. and for other purposes; to the Committee on H.R. 3592. A bill to reduce the impacts of HAYWORTH, and Mr. SCHAFFER): Financial Services. hurricanes, tornadoes, and related natural H.R. 3600. A bill to establish a National By Mr. YOUNG of Alaska: hazards through a program of research and Border Security Agency; to the Committee H.R. 3608. A bill to provide for the convey- development and technology transfer, and on Government Reform, and in addition to ance of certain property in the State of Alas- for other purposes; to the Committee on the Committees on the Judiciary, Transpor- ka, and for other purposes; to the Committee Science, and in addition to the Committee tation and Infrastructure, and Ways and on Resources, and in addition to the Com- on Transportation and Infrastructure, for a Means, for a period to be subsequently deter- mittee on Armed Services, for a period to be period to be subsequently determined by the mined by the Speaker, in each case for con- subsequently determined by the Speaker, in Speaker, in each case for consideration of sideration of such provisions as fall within each case for consideration of such provi- such provisions as fall within the jurisdic- the jurisdiction of the committee concerned. sions as fall within the jurisdiction of the tion of the committee concerned. By Mr. TIAHRT: committee concerned. By Mr. NADLER: H.R. 3601. A bill to amend the Internal Rev- By Mr. YOUNG of Alaska (for himself, H.R. 3593. A bill to extend the period of enue Code of 1986 to exclude from gross in- Mr. TAUZIN, Mr. PETRI, Mr. BARTON of availability of unemployment assistance come certain terrorist attack zone com- Texas, Mr. GREEN of Texas, Mr. under the Robert T. Stafford Disaster Relief pensation of civilian uniformed personnel; to SANDLIN, Mr. CARSON of Oklahoma, and Emergency Assistance Act in the case of the Committee on Ways and Means. and Mr. HALL of Texas): victims of the terrorist attacks of September By Mr. TOWNS (for himself, Mr. H.R. 3609. A bill to amend title 49, United 11, 2001; to the Committee on Transportation UPTON, Mrs. CAPPS, Ms. MILLENDER- States Code, to enhance the security and and Infrastructure. MCDONALD, Mr. WAXMAN, Mr. LEWIS safety of pipelines; to the Committee on By Mr. OLVER (for himself, Mr. of Georgia, Mr. ABERCROMBIE, Mr. Transportation and Infrastructure, and in MCGOVERN, Mr. FRANK, Mr. SERRANO, RUSH, Mr. LEACH, Mr. BALDACCI, Ms. addition to the Committee on Energy and Mr. FROST, Mr. STRICKLAND, and Mr. RIVERS, Mrs. MORELLA, Mr. THOMP- Commerce, for a period to be subsequently HINCHEY): SON of Mississippi, Mr. PALLONE, Mr. determined by the Speaker, in each case for H.R. 3594. A bill to amend title XIX of the HINCHEY, Mrs. LOWEY, Mrs. MALONEY consideration of such provisions as fall with- Social Security Act to improve access to ad- of New York, Mrs. CLAYTON, Mr. in the jurisdiction of the committee con- vanced practice nurses under the Medicaid PRICE of North Carolina, Mr. UDALL cerned. Program; to the Committee on Energy and of New Mexico, Mr. OXLEY, Mr. By Mr. ARMEY: Commerce. GILLMOR, Mr. KENNEDY of Rhode Is- H.J. Res. 80. Joint resolution appointing By Mr. ROTHMAN (for himself, Mr. land, Mr. KLECZKA, Mr. DINGELL, Mr. the day for the convening of the second ses- CROWLEY, Mr. ENGLISH, Mr. STARK, OWENS, Mr. MOORE, Mr. STRICKLAND, sion of the One Hundred Seventh Congress; Mr. BLAGOJEVICH, Mr. CAPUANO, Mr. Mr. THOMPSON of California, Mr. considered and passed.

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By Mr. ISTOOK (for himself, Mr. nations; to the Committee on Energy and H.R. 1848: Mr. GOODLATTE. ADERHOLT, Mr. AKIN, Mr. ARMEY, Mr. Commerce. H.R. 1935: Mr. HOSTETTLER. BAKER, Mr. BALLENGER, Mr. BARR of By Mr. ARMEY: H.R. 1984: Mr. NORWOOD. Georgia, Mr. BARTLETT of Maryland, H. Res. 327. A resolution providing for a H.R. 2008: Mr. WATTS of Oklahoma. Mr. BARTON of Texas, Mr. BACHUS, committee of two Members to be appointed H.R. 2037: Mr. WILSON of South Carolina, Mr. BEREUTER, Mr. BROWN of South by the House to inform the President; con- Mr. CRENSHAW, and Mr. MURTHA. Carolina, Mr. BURTON of Indiana, Mr. sidered and agreed to. H.R. 2109: Mr. MICA, Mr. BILIRAKIS, Mr. CALVERT, Mr. COMBEST, Mr. CRANE, By Ms. KAPTUR: GOSS, Mr. FOLEY, and Mr. JEFF MILLER of Mrs. JO ANN DAVIS of Virginia, Mr. H. Res. 328. A resolution expressing the Florida. DEAL of Georgia, Mr. DEMINT, Mr. sense of Congress that, during this holiday H.R. 2125: Mr. LARGENT, Ms. DEGETTE, and DOOLITTLE, Mr. DUNCAN, Mrs. EMER- season, peace may prevail in the Middle Mr. HASTINGS of Florida. SON, Mr. EVERETT, Mr. FORBES, Mr. East; to the Committee on International Re- H.R. 2148: Mr. BERMAN and Mr. UNDERWOOD. GEKAS, Mr. GOODE, Mr. GRAHAM, Mr. lations. H.R. 2290: Mr. GILCHREST. GRAVES, Mr. GRUCCI, Mr. HALL of By Ms. KILPATRICK: H.R. 2316: Mr. STEARNS. Texas, Mr. HANSEN, Ms. HART, Mr. H. Res. 329. A resolution expressing the H.R. 2327: Mr. STEARNS. HAYES, Mr. HAYWORTH, Mr. HEFLEY, sense of the House of Representatives that H.R. 2348: Mr. PASCRELL, Mr. GEORGE MIL- Mr. HOEKSTRA, Mr. HULSHOF, Mr. lobbyists should not be granted special ac- LER of California, Mr. ROTHMAN, and Mrs. HUNTER, Mr. SAM JOHNSON of Texas, cess privileges to the Capitol and congres- DAVIS of California. Mr. JONES of North Carolina, Mr. sional offices that are not available to other H.R. 2349: Mr. TRAFICANT, Mr. MEEHAN, Mr. KERNS, Mr. KINGSTON, Mr. LARGENT, citizens of the United States; to the Com- PETERSON of Minnesota, Mr. KILDEE, Mr. Mr. LEWIS of Kentucky, Mr. LINDER, mittee on House Administration. DINGELL, Mr. NEAL of Massachusetts, Mr. STUPAK, Mrs. MALONEY of New York, Mr. LI- Mr. LIPINSKI, Mr. MCHUGH, Mrs. f MYRICK, Mr. OXLEY, Mr. PENCE, Mr. PINSKI, Mr. GONZALEZ, and Mr. SAWYER. PETERSON of Pennsylvania, Mr. PICK- PRIVATE BILLS AND H.R. 2357: Mr. GRUCCI and Mr. ISTOOK. ERING, Mr. PITTS, Mr. POMBO, Mr. RA- RESOLUTIONS H.R. 2426: Mr. GOODLATTE. H.R. 2484: Mr. LANTOS and Mr. GRUCCI. HALL, Mr. RILEY, Mr. RYUN of Kansas, Under clause 3 of rule XII, Mr. SCHAFFER, Mr. SHOWS, Mr. SHU- H.R. 2537: Mr. MCHUGH and Mr. KIRK. STER, Mr. SMITH of New Jersey, Mr. Mr. WATTS of Oklahoma introduced a bill H.R. 2570: Mr. PASCRELL, Mr. EVANS, Mr. SOUDER, Mr. STEARNS, Mr. TANCREDO, (H.R. 3610) for the relief of Lindita Idrizi FORD, Mr. CARDIN, Mr. SPRATT, and Ms. Mr. TAYLOR of North Carolina, Mr. Heath; which was referred to the Committee SCHAKOWSKY. TAYLOR of Mississippi, Mr. TERRY, on the Judiciary. H.R. 2573: Mr. FARR of California. Mr. THORNBERRY, Mr. TIAHRT, Mr. f H.R. 2610: Mr. OSBORNE, Mr. CUMMINGS, Mr. LANGEVIN, and Mr. WATTS of Oklahoma. VITTER, Mr. WAMP, Mr. WATKINS, Mr. ADDITIONAL SPONSORS WATTS of Oklahoma, Mr. WELDON of H.R. 2618: Mr. MCDERMOTT. Florida, and Mr. WICKER): Under clause 7 of rule XII, sponsors H.R. 2629: Mr. TIERNEY. H.J. Res. 81. A joint resolution proposing were added to public bills and resolu- H.R. 2633: Mrs. LOWEY and Mrs. JOHNSON of Connecticut. an amendment to the Constitution of the tion as follows: United States restoring religious freedom; to H.R. 2634: Mrs. LOWEY and Mrs. JOHNSON of the Committee on the Judiciary. H.R. 102: Mr. FORBES. Connecticut. By Mr. ARMEY: H.R. 111: Ms. LOFGREN. H.R. 2714: Mr. CHABOT. H. Con. Res. 295. Concurrent resolution H.R. 397: Mr. SPRATT, Ms. BERKLEY, Mr. H.R. 2718: Mrs. LOWEY. providing for the sine die adjournment of the BROWN of Ohio, Mr. HILLIARD, Mr. THOMPSON H.R. 2735: Ms. BROWN of Florida, Ms. JACK- first session of the One Hundred Seventh of Mississippi, Mrs. BONO, and Ms. EDDIE SON-LEE of Texas, Mr. MEEKS of New York, Congress; considered and agreed to. BERNICE JOHNSON of Texas. and Mr. WYNN. By Mr. BARR of Georgia (for himself, H.R. 488: Ms. SANCHEZ and Ms. RIVERS. H.R. 2807: Mr. NUSSLE. Mr. BACHUS, Mrs. JO ANN DAVIS of H.R. 639: Mr. BALDACCI, Ms. HART, and Mr. H.R. 2817: Mr. ROGERS of Kentucky. Virginia, Mr. GOODE, and Mrs. MANZULLO. H.R. 2917: Mrs. LOWEY. MYRICK): H.R. 804: Mr. PRICE of North Carolina. H.R. 2974: Mr. GRUCCI. H. Con. Res. 296. Concurrent resolution H.R. 876: Mr. STEARNS. H.R. 2889: Mr. ISRAEL and Mr. KILDEE. urging the President to negotiate a new base H.R. 951: Mrs. LOWEY, Mr. PHELPS, Ms. LEE, H.R. 3017: Mr. KILDEE. rights agreement with the Government of Ms. SANCHEZ, Mr. THOMPSON of California, H.R. 3026: Ms. BERKLEY. the Republic of Panama in order for United and Mrs. TAUSCHER. H.R. 3058: Mr. BAIRD, Ms. EDDIE BERNICE States Armed Forces to be stationed in Pan- H.R. 978: Mr. GEORGE MILLER of California. JOHNSON of Texas, Ms. MCKINNEY, Mr. MEE- ama for the purposes of defending the Pan- H.R. 1097: Mr. KING, Mr. FARR of California, HAN, Mr. BASS, Mr. BRADY of Pennsylvania, ama Canal; to the Committee on Inter- and Mr. ROTHMAN. Mr. UPTON, Mr. HOLT, Mr. PLATTS, Mr. ACK- national Relations, and in addition to the H.R. 1116: Ms. SCHAKOWSKY. ERMAN, Mr. NEAL of Massachusetts, Mr. BER- Committee on Armed Services, for a period H.R. 1136: Mr. MOORE. MAN, Mr. ENGLISH, Mr. UDALL of New Mexico, to be subsequently determined by the Speak- H.R. 1143: Mr. ROSS. Mrs. CAPPS, and Mr. WELDON of Pennsyl- er, in each case for consideration of such pro- H.R. 1172: Mr. HINOJOSA. vania. visions as fall within the jurisdiction of the H.R. 1204: Mr. INSLEE. H.R. 3068: Mr. KANJORSKI. committee concerned. H.R. 1213: Mr. TOM DAVIS of Virginia, Mr. H.R. 3075: Ms. SCHAKOWSKY. By Mr. HOEKSTRA (for himself and SHUSTER, and Mr. POMEROY. H.R. 3080: Mr. WOOLSEY. Mr. TOM DAVIS of Virginia): H.R. 1214: Mr. TOM DAVIS of Virginia and H.R. 3142: Mr. PETERSON of Minnesota, Mr. H. Con. Res. 297. Concurrent resolution rec- Mr. KANJORSKI. DEAL of Georgia, Mr. TERRY, Mr. GUTKNECHT, ognizing the historical significance of 100 H.R. 1265: Mr. OBERSTAR. and Mr. MCHUGH. years of Korean immigration to the United H.R. 1296: Mr. SMITH of Washington. H.R. 3154: Mrs. MYRICK, Mr. PRICE of North States; to the Committee on Government H.R. 1351: Ms. LOFGREN. Carolina, and Mr. ROTHMAN. Reform. H.R. 1377: Mr. LARSEN of Washington. H.R. 3161: Mr. WATT of North Carolina. By Mr. ISRAEL: H.R. 1421: Mr. THOMPSON of Mississippi, Mr. H.R. 3185: Mr. DELAHUNT. H. Con. Res. 298. Concurrent resolution ex- ROTHMAN, Mr. LATOURETTE, Mr. BAIRD, Mr. H.R. 3194: Mr. LANTOS. pressing the sense of the Congress that State BRADY of Pennsylvania, Mr. BROWN of Ohio, H.R. 3205: Mr. GREEN of Wisconsin. and local officials should designate school Mr. HILLIARD, Mr. FERGUSON, Mr. ISAKSON, H.R. 3229: Mr. AKIN and Mr. HAYWORTH. nurses as ‘‘first responders‘‘ and remove any and Ms. EDDIE BERNICE JOHNSON of Texas. H.R. 3244: Ms. HARMAN, Mr. GORDON, and legal or regulatory barriers that would im- H.R. 1433: Mr. MATSUI. Mr. HASTINGS of Florida. pede school nurses from responding to a bio- H.R. 1460: Mr. GOODLATTE. H.R. 3270: Mr. BARR of Georgia. logical or chemical attack; to the Com- H.R. 1475: Mr. PLATTS. H.R. 3286: Mr. HAYWORTH. mittee on Energy and Commerce. H.R. 1515: Mrs. THURMAN. H.R. 3288: Mr. BILIRAKIS. By Ms. MCCARTHY of Missouri (for H.R. 1596: Mr. HAYWORTH. H.R. 3296: Mr. FROST and Mr. PAYNE. herself, Ms. MCCOLLUM, Mr. BEREU- H.R. 1624: Mr. RYUN of Kansas. H.R. 3319: Mr. GOODLATTE. TER, Ms. LEE, Mr. BLUMENAUER, Mr. H.R. 1645: Ms. CARSON of Indiana. H.R. 3332: Mr. ROTHMAN. GUTKNECHT, Mr. KENNEDY of Min- H.R. 1700: Mr. SNYDER. H.R. 3341: Ms. ROYBAL-ALLARD, Ms. LEE, nesota, Mr. PETERSON of Minnesota, H.R. 1759: Mr. HOEFFEL. and Ms. SCHAKOWSKY. Mr. LUTHER, Mr. SKELTON, Mr. H.R. 1779: Mrs. LOWEY. H.R. 3347: Mr. BURTON of Indiana, Mr. TIAHRT, Mr. MOORE, Mr. MORAN of H.R. 1784: Mr. DOYLE. ABERCROMBIE, Mr. LARSEN of Washington, Kansas, and Mr. SABO): H.R. 1795: Mr. KNOLLENBERG. and Mr. UPTON. H. Res. 326. A resolution encouraging more H.R. 1810: Mr. MASCARA. H.R. 3351: Mr. SIMPSON, Mr. FROST, Mr. revenue sharing among major league base- H.R. 1822: Ms. HOOLEY of Oregon and Mr. WILSON of South Carolina, Mr. TIAHRT, Mr. ball teams as an alternative to team elimi- MCHUGH. CANTOR, Mr. PLATTS, and Mrs. BIGGERT.

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H.R. 3412: Mr. SKEEN, Mr. FORBES, Mr. H.R. 3464: Mr. DEFAZIO, Ms. EDDIE BERNICE H. Con. Res. 132: Mr. GOODLATTE. SAXTON, and Mr. ROHRABACHER. JOHNSON of Texas, Mr. SCHIFF, and Ms. SOLIS. H. Con. Res. 180: Mr. BROWN of Ohio. H.R. 3478: Mr. KERNS. H.R. 3414: Mrs. THURMAN. H. Con. Res. 220: Mr. AKIN. H.R. 3415: Ms. SCHAKOWSKY. H.R. 3479: Mr. GRAVES, Mr. STUPAK, and H. Con. Res. 285: Mr. THOMPSON of Cali- H.R. 3424: Mr. ROGERS of Michigan, Mr. Mr. HOBSON. fornia, Ms. SOLIS, and Mr. CAPUANO. TAUZIN, Mrs. WILSON of New Mexico, Mr. H.R. 3498: Mr. FALEOMAVAEGA and Mr. LI- H. Res. 281: Ms. SOLIS. MASCARA, Ms. SCHAKOWSKY, Mr. LEWIS of PINSKI. H.R. 3501: Ms. ESHOO. Kentucky, Mr. VITTER, Ms. LOFGREN, and Mr. H. Res. 300: Ms. MCCARTHY of Missouri. H.R. 3505: Mr. GEORGE MILLER of Cali- WELDON of Pennsylvania. H. Res. 302: Mr. COMBEST, Mr. BARCIA, Mr. fornia. H.R. 3429: Mr. KERNS and Mr. SIMMONS. BRYANT, Mr. SHAW, and Mr. MANZULLO. H.R. 3511: Mr. ENGLISH. H. Res. 313: Mr. NEAL of Massachusetts, H.R. 3435: Ms. KILPARICK and Mr. UNDER- H.R. 3514: Mr. FROST. WOOD. H.R. 3524: Ms. MILLENDER-MCDONALD. and Mr. STARK. H.R. 3443: Mr. WICKER, Mr. SAM JOHNSON of H. Con. Res. 30: Mr. FORBES. H. Res. 325: Mr. MCNULTY, Mr. FOSSELLA, Texas, and Mr. FALEOMAVAEGA. H. Con. Res. 46: Ms. CARSON of Indiana. and Ms. VELAZQUEZ.

VerDate 10-DEC-2001 00:06 Dec 22, 2001 Jkt 099060 PO 00000 Frm 00055 Fmt 7634 Sfmt 0634 E:\CR\FM\A20DE7.026 pfrm02 PsN: H20PT1 E PL UR UM IB N U U S Congressional Record United States th of America PROCEEDINGS AND DEBATES OF THE 107 CONGRESS, FIRST SESSION

Vol. 147 WASHINGTON, THURSDAY, DECEMBER 20, 2001 No. 178 Senate (Legislative day of Tuesday, December 18, 2001)

The Senate met at 9:30 a.m., on the lic for which it stands, one nation under God, DEPARTMENTS OF LABOR, expiration of the recess, and was called indivisible, with liberty and justice for all. HEALTH AND HUMAN SERVICES, to order by the Honorable E. BENJAMIN AND EDUCATION, AND RELATED NELSON, a Senator from the State of f AGENCIES APPROPRIATIONS Nebraska. ACT, 2002—CONFERENCE REPORT APPOINTMENT OF ACTING PRAYER The ACTING PRESIDENT pro tem- PRESIDENT PRO TEMPORE pore. Under the previous order, the The Chaplain, Dr. Lloyd John Senate will now proceed to consider- Ogilvie, offered the following prayer: The PRESIDING OFFICER. The Dear Father, sovereign of this Na- ation of the conference report to ac- clerk will please read a communication company H.R. 3061 which the clerk will tion, we press on with the work of the to the Senate from the President pro Senate with the message and meaning report. tempore (Mr. BYRD). of this sacred season in our hearts. Al- The assistant legislative clerk read though the Senators worship You in The assistant legislative clerk read as follows: different liturgies based on their reli- the following letter: The committee of conference on the dis- agreeing votes of the two Houses on the gious backgrounds, they all believe in U.S. SENATE, amendment of the Senate to the bill (H.R. You as sovereign of this Nation. Help PRESIDENT PRO TEMPORE, Washington, DC, December 20, 2001. 3061) making appropriations for the Depart- them and their staffs work together in ments of Labor, Health and Human Services, a way that exemplifies to our Nation To the Senate: and Education, and related agencies for the that people who trust in You can trust Under the provisions of rule I, paragraph 3, fiscal year ending September 30, 2002, and for one another; that people who experi- of the Standing Rules of the Senate, I hereby other purposes, having met, have agreed that the House recede from its disagreement to ence Your goodness can be people of appoint the Honorable E. BENJAMIN NELSON, the amendment of the Senate and agree to good will. May this historic Chamber a Senator from the State of Nebraska, to the same with an amendment and the Senate be a place of creative exchange of in- perform the duties of the Chair. sight that leads to greater unity agree to the same, signed by all conferees on ROBERT C. BYRD, the part of both Houses. around shared convictions about what President pro tempore. is best for America. You are here lis- (The conference report is printed in tening, watching, judging. When we Mr. NELSON of Nebraska thereupon the House proceedings of the RECORD of end this week, may we hear Your affir- assumed the chair as Acting President Wednesday, December 19, 2001.) mation: ‘‘Well done, you have pulled pro tempore. The ACTING PRESIDENT pro tem- together for the sake of America.’’ pore. The Senator from Nevada. Amen. f Mr. REID. Mr. President, I ask unan- imous consent that the time that has f RESERVATION OF LEADER TIME been assigned run equally against all PLEDGE OF ALLEGIANCE parties during this time. There is no The Honorable E. BENJAMIN NELSON The ACTING PRESIDENT pro tem- one here on the bill. led the Pledge of Allegiance, as follows: pore. Under the previous order, the The ACTING PRESIDENT pro tem- I pledge allegiance to the Flag of the leadership time is reserved. pore. Without objection, it is so or- United States of America, and to the Repub- dered.

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

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NEBRASKA SENATORS most, and seems to be one that is not The PRESIDING OFFICER. The Sen- Mr. REID. Mr. President, until some- agreed to, is that of economic stim- ator from Nevada is recognized. one comes to work on these bills, I ulus. Certainly that will be coming for- STIMULUS PACKAGE would like to mention one thing. I ward. We have talked about it for a Mr. REID. Mr. President, I didn’t wanted to say this last night. The hour very long time. The President has want this morning to disturb the mood was late. The Presiding Officer was the talked about it. We have had meetings of our last day here. Therefore, I didn’t same. about it. The House obviously has do anything about the message deliv- I have had the good fortune during worked out a separate proposal for us. ered from the House this morning. the time I have served in the Senate to I am hopeful that as we undertake this When she came in and bowed—and I ap- work with some outstanding Senators. effort, we will decide, as we should on preciate the dignity that creates here— The two who come to my mind are all of the topics that come before us, I had a big smile on my face. I wrote on from the State of Nebraska. Senator what do we want to see as the result. my pad here ‘‘laugh,’’ because it is Jim Exon was such a unique individual. So often we get wrapped up entirely laughable. A stimulus package now? What in the I have so many fond memories of this with the details of what is going on world are they trying to do in the great big man who had such a big body, here, and the details obviously are im- House of Representatives? They are but in that big body was a great big portant, but what is more important is going home at 1:30 this afternoon. Did heart. He was a tremendous Senator. I what it is we want to accomplish and they think, after we worked on this so miss him a great deal. how will what we are talking about do that. long and hard, we are going to accept Then, of course, to serve with BOB Certainly, I hope we talk about what that in the Senate? It makes the origi- KERREY is an experience. He was truly nal bill they did that was so bad look a free spirit, someone who was not only is the purpose of an economic stimulus good. an American hero, having the Congres- package. Obviously, we are in a reces- So I hope the American public under- sional Medal of Honor, but someone sion. No one seems to know exactly stands the charade. That is what it is. who was as valiant in his legislative what the best techniques are to deal The House of Representatives worked duties as he was in his military duties. with stimulating the economy. We until 4:30 this morning coming up with Following in the footsteps of these have listened to all kinds of econo- a stimulus package strictly for polit- two men whom I enjoyed serving with mists, including our nationally cele- ical purposes. It has no substantive so much is the Presiding Officer, a man brated economists. There are different merit whatsoever. They knew that, and who served as Governor of the State of ideas about that. Certainly, we want to they know it has no chance of passing Nebraska and came to the Senate with see if we can’t create more jobs, if we over here. That is too bad. great credentials from my perspective. can’t strengthen the economy. If it is called an economic stimulus, We started out with a stimulus pack- On paper, the Presiding Officer has all then certainly that has to be the pur- age that made sense. Senator BYRD and the credentials to be a great Senator. A pose. I wanted to do something to create lot of people are good on paper in all How do you do that? You do it by cre- jobs. We knew that for every billion walks of life. But in the short time I ating jobs and investment. You do it by dollars spent on road building, 42 thou- have served with the Presiding Officer putting more money in the hands of sand jobs are created, and those 42,000 as a Senator from Nebraska, his cre- the people in the countryside, particu- people would, of course, pay taxes and dentials certainly have served him well larly those who have suffered, of buy refrigerators and cars. The Repub- in the Senate because the Presiding Of- course. That is another alternative. licans would not go along with that. ficer is as good a person as he is on The proposals we have had do both of We were always attempting to protect paper. those things in varying degrees. So I the American worker—their unemploy- I extend my congratulations to the hope we can do that. ment benefits, health benefits. people of Nebraska for sending to the There are those, of course, who be- Because of the very narrowminded of Senate a person with such great quali- lieve that at this point an economic the Republican House of Representa- ties. I am sure the people of Nebraska stimulus is not necessary. I don’t agree tives, we are unable to do anything. appreciate Senator BEN NELSON. But I with that, but it is a point of view. I That is too bad. I am disappointed that am not sure they appreciate him was thinking this morning, listening to we have, on the last day of the session, enough. For those of us who work per- the TV, about politics. This is politics. this silly package brought to us from sonally with the Presiding Officer on a Well, having different views is not un- the House of Representatives. That is daily basis, in some of the most dif- usual. Everyone in the country has dif- what it is—a silly package. ficult legislative matters that ever ferent views. In many places, that is COMPLIMENTING SENATOR HARKIN come before this country, I can say defined as standing up for what you be- Mr. REID. Mr. President, changing without hesitation that Senator BEN lieve. When we disagree here, it is sud- the subject for a minute, while I still NELSON is in the same caliber as Ne- denly called politics. I understand that. have the floor, I have spent 2 or 3 braskans who have served before him There are legitimate, different views. weeks with the Senator from Iowa on and with whom I have had the honor of I hope we can keep in mind that cer- the farm bill. He has done a wonderful serving: Senators Exon and KERREY. tainly one of the major purposes of an job getting the bill out of committee, Nebraska should be very proud of the economic stimulus is to stimulate the trying to satisfy the disparate groups dignity and the service of the three economy, to create jobs. We are not throughout America that have farm in- people I have had the good fortune of looking for a continuing assistance terests. He has done that. Again, be- serving with in the Senate. program. We are looking for something cause of a filibuster, we were unable to The ACTING PRESIDENT pro tem- that will cause jobs to come back, so bring the bill forward. He is here again pore. The Senator from Wyoming. people can spend money. The other today as chairman of the Labor-HHS ECONOMIC STIMULUS thing that, obviously, we want to do is Appropriations Subcommittee, which Mr. THOMAS. Mr. President, I rise to assist those who have suffered as a re- is, other than Defense, the biggest make a couple of general comments. As sult of the September 11 tragedy. money-spending bill we have. we move towards perhaps the final day, I look forward to it. I hope we can do There are so many important provi- certainly very close to the final day of something that will have an impact. sions for the State of Nevada and every our time here, I hope we can move for- Frankly, we will be limited in time, State in our Nation. I hope people in ward. We have three appropriations but I hope we don’t establish new enti- Iowa understand what a resource they bills that we have been looking forward tlement programs through this kind of have in TOM HARKIN, chairman of the to discussing and have to finish before emergency program. We ought to real- Agriculture Committee, chairman of we end. There will probably be some ly be serious about seeing what we can the Labor-HHS Appropriations Sub- discussion on particularly the Defense do that is effective in measuring committee, one of the most senior appropriations. against the results we would like to members of the Appropriations Com- Nevertheless, the bill and the issue have. mittee. I didn’t have a chance, because that I suppose we will talk about the I yield the floor. of the parliamentary situation in the

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00002 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S13775 last few days, to say anything com- The conference report is a good bill. We increase afterschool programs by plimentary about my friend. I want It is one I can strongly recommend to $154 million. We finally broke the $1 him to understand, on behalf of the en- my colleagues. Senator SPECTER and I billion threshold. We provide for $1 bil- tire Democratic caucus, how much we worked with our subcommittee mem- lion in afterschool programs. appreciate what he does. He is a re- bers, the House leaders, Congressmen We increase the funding for teacher source that is invaluable to the Senate OBEY and REGULA, to help shape it. We quality by three-quarters of a billion and this country. have done our best to accommodate the dollars. The total we have in this bill Mr. HARKIN. I thank my friend from literally thousands of requests we have for teacher quality is $2.85 billion. Nevada for the very kind words. I, received from our colleagues. The Senate bill contained nearly $1 again, thank him for all of his great I wish to highlight some of the main billion when we passed it to make support and help as we tried to get the features of our conference report. needed repair to our schools, including farm bill through, but it was stopped First, it takes a number of important security enhancements. We started this by the other side. I thank my friend steps to improve the quality, afford- initiative last year. It has been a great from Nevada for his great help on get- ability, and accessibility of health care success. I am very disappointed we ting our appropriations bill through. in America. We included a record in- could not reach an agreement to con- As Senator REID said, this is the sec- crease for the National Institutes of tinue it this year. However, I have ond largest appropriations bill—second Health of $3 billion—again, building made it clear that I will bring the issue only to Defense. But what is important upon the excellent work done when back again next year. We have schools is that this is the appropriations bill Senator SPECTER chaired this sub- crumbling all over America, and I that binds our country together. This committee, in meeting the stated goal think it is a legitimate role for the is the bill that makes America unique of the Congress to double NIH funding Federal Government to play to help in the world. This is the appropriations over 5 years. So we put a record $3 bil- our States and local communities re- bill that says to every kid in America: lion into this bill for NIH. pair, rebuild, and modernize their No matter where you are born, no mat- We have also combined with that an schools to make them adaptable for the ter the circumstances of your birth, additional approximately $200 million 21st century. The average age of our you are going to get a good education; in NIH resources related to bioter- schools now is well over 40 years, many we are going to put the resources out rorism, which is included not in this 50 years old and over 75 years old. They there. No matter what your resources bill but in the supplemental appropria- need to be upgraded. They need to be are, we are going to get you the funds tions bill. This keeps us on track in modernized. Our property-tax payers in you need to go to college, or for job doubling our commitment. This action my State and I know in the Presiding Officer’s State are overburdened as it training if you don’t want to go to col- holds the hope of improving the lives of is. Property tax is not a real reflection lege. millions of Americans plagued by kill- of one’s ability to pay, and yet that is This provides the underpinning of our ers such as Alzheimer’s, cancer, Par- still how we fund the rebuilding of our medical research. This bill underpins kinson’s, heart disease, diabetes, the health care of America in so many schools across America. osteoporosis, and so many other We started on this last year. I am ways. This is the bill that provides all things. disappointed we could not continue it of the support for our jobs, our Job The conference agreement also this year, but hopefully we will be back Corps, our training programs, all of the makes a major improvement in access again next year to meet that need. worker training programs that come to affordable health care by providing a I am also pleased this agreement im- through the Department of Health. $175 million increase to community proves our commitment to worker This is the bill that covers the Depart- health centers and major increases in training and safety. We funded our ment of Education, the Department of critical prevention activities, such as State unemployment offices to handle Health and Human Services, and the cancer and heart disease screening. the increased caseloads they are facing Department of Labor, and all bio- These changes will save lives and im- now and probably will face for the re- medical research. prove health around the country. mainder of the winter. At this time of So I am very proud and I feel very As a Senator from Iowa and cochair economic downturn, these investments privileged to be a Senator, but also to of the Rural Health Caucus of the Sen- are crucial. be on the Appropriations Committee ate, I am pleased to report that the I wish to highlight a substantial ini- and to chair this subcommittee that I agreement includes a major new effort tiative in this bill to improve services believe speaks about what America to improve health care in rural areas to our Nation’s elderly. We will allow really is. I am also on the Defense Ap- and small towns. more homebound seniors to receive propriations Subcommittee. That is We will bring more doctors, nurses, Meals on Wheels. We provide a major the committee that defends our inter- and other health professionals to increase in services, such as adult ests around the globe. This is the sub- places they are needed by expanding daycare, to help the elderly stay in committee that makes America what the National Health Service Corps and their own homes and to give their America is in the world community— the Nurse Loan Repayment Program. loved ones who are taking care of them unique among nations. Our struggling rural hospitals are needed respite care and support. I am proud and privileged to bring to given help to deal with Medicare paper- Finally, our subcommittee held a se- the Senate Chamber this morning the work and help to expand into other ac- ries of four hearings on the need to bet- conference report on the Labor, Health tivities, such as adult daycare. ter protect Americans from the threat and Human Services, Education and re- This agreement also includes sub- of bioterrorism. Based on these hear- lated agencies appropriations bill. stantial new resources to improve edu- ings, Senator SPECTER and I put to- First, I thank my good friend and cation. While I am disappointed that gether a comprehensive antibioter- longtime partner in this effort, Senator additional funds were not provided by rorism funding plan. SPECTER. We have had a great partner- beginning to fully fund special edu- While the agreement before us con- ship for a number of years. Some time cation as a part of the education re- tains a modest level of funding to ad- ago, I was chairman of this sub- form bill, I believe we did a good job dress this need, our comprehensive $3 committee, and he was my ranking with the resources we were provided. billion plan is included in the home- member. Then when the other party The agreement makes college more land security package which we will took control of the Senate, he became affordable for millions of young people work on later today on the Defense ap- chairman and I was ranking member. by increasing the Pell grant maximum propriations bill. Between the two, we Now I am chairman again and he is to $4,000. We increase the TRIO Pro- will be substantially improving the se- ranking member again. We have had a gram by $72.5 million, which brings curity of Americans against a bioter- great partnership, going back now just total funding for the TRIO Program to rorist attack. For the record, in the about an even dozen years. I thank him $802 million. bioterrorism supplemental, we have and his staff, who I will name after a The bill also increases funding for provided $865 million to expand State bit, for helping put together this bill title I reading and math by $1.6 billion and local public health capacity, to ex- on a truly bipartisan basis. for a total of $10.35 billion to title I. pand the health alert network, and for

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00003 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S13776 CONGRESSIONAL RECORD — SENATE December 20, 2001 round-the-clock disease investigators all night to get this done. That is the ator HARKIN said earlier about what is in every State. kind of dedication and hard work of in this bill. I noticed Senator INOUYE We provided $512 million to acquire our Appropriations Committee staff of was here a few moments ago. As chair enough smallpox vaccine for every which I am proud. of the Appropriations Subcommittee American, and hopefully the smallpox I especially note the great work of on Defense, he has a responsibility to vaccine will be available for every the staff director on the subcommittee, defend and protect America. Senator American sometime towards the end of Ellen Murray, who worked tirelessly HARKIN of the Labor-HHS Sub- next year, maybe as early as Sep- through the year to shape, form, and committee of Appropriations has the tember of next year. work on the allocations and bring this responsibility to make sure that Amer- We included $593 million to beef up all together. Just as I have worked icans’ lives are worth living, whether it our entire vaccine stockpile in Amer- closely with Senator SPECTER, I know is education, health care or a commit- ica; $135 million to help our hospitals she has worked closely with another ment to labor. Time and again Senator with surge capacity. If, God forbid, we great staff person, Bettilou Taylor HARKIN, in this appropriations bill, has did have a terrorist attack, our hos- with Senator SPECTER, and all of our answered the call of this country. I pitals in so many areas just would not staffs. Bettilou and Ellen have just commend him, as Senator REID did ear- be able to handle it. We have provided done an outstanding job of putting this lier. $135 million that will help hospitals together. It would not have been pos- This is an important bill for Amer- meet that surge capacity if they re- sible without them. I thank them both ica. It is a better bill because of the quire it. very much for their expertise and their hard work Senator HARKIN and Senator We provided $155 million to improve hard work. SPECTER and the staffs have put into it. vaccine research and lab capacities at I thank Jim Sourwine, Erik Fatemi, I am going to be an anxious supporter NIH. And we included up to $10 million Mark Laisch, Adam Gluck, Lisa Bern- of the bill. for a new national tracking system for hardt, Adrienne Hallett, and Carole I have been fortunate to have served deadly pathogens such as anthrax. Geagley, as well as Bev Schroeder and 12 years on the House Appropriations Right now, we track every microscopic Chani Wiggins of my personal staff for Committee and now 3 years on the Sen- ounce of radioactive material that is in their terrific and tireless efforts. ate Appropriations Committee, but my our powerplants, in our laboratories, As I said, the bill before us simply dream to be on this appropriations sub- and weapons. We keep a good inventory would not have been possible without committee is still yet to be realized. I and tracking system of radioactive nu- them. I mentioned my staff. Let me hope someday to make it because I clear materials, but we do not have also mention Mary Dietrich on Senator think it is most important and cer- such a capacity with our deadly patho- SPECTER’s staff, Sudip Parikh—I do not tainly reflects your hard work has gens, as we have seen with anthrax. know where Sudip is, but I thank him made it to the bill that will be consid- It now looks as though the anthrax for all the great briefings he has given ered on what may be the last day. that was sent to Senator DASCHLE’s of- me in the past. I thank him very much. VERIFICATION OF PERSONAL IDENTITY fice and Senator LEAHY and others that Maybe after all my briefings on an- Madam President, I would like to ad- came through the mail originated in thrax he will let me know how it all dress another issue very quickly, if I this country. There are all kinds of sto- works. Emma Ashburn, also I thank may. ries in the press of it coming through Emma for all of her great work. Fort Detrick, MD, and Dugway in I say again, we have an outstanding Since September 11, 2001, all of us in Utah, but no one knows because we staff, and I thank them all. I take this Federal, State, and local governments have never had in place an inventory opportunity publicly to wish them a have been looking for ways to enhance and tracking system for deadly patho- restful Merry Christmas. I hope they our homeland security. We have re- gens. The money we appropriated will catch up on all the sleep they have lost viewed just about every government begin the process of making sure this over the last couple weeks. They have regulation or practice that affects the situation does not happen again. done a great job and have my undying security of our daily lives in order to We put in $71 million to improve se- appreciation and admiration and fix weaknesses, close loopholes, and curity at our Nation’s laboratories. thanks for the great job they have beef up protection for all Americans. That is all the money we put into the done. Among other efforts that I have led— bioterrorism portion of the bill which I know a couple of other Senators such as airline security, food safety, will be in the Defense appropriations were seeking time. How much time do assuring a state of national readiness— bill later today. I have remaining? I am now working on a bill to address I believe we have a good bill of which The PRESIDING OFFICER (Ms. STA- weaknesses in our nation’s personal we can be proud. It is the product of a BENOW). The Senator has 22 minutes. identification system. bipartisan compromise. As I said, it is Mr. HARKIN. How much time does Specifically, I am interested in fixing not perfect. Some of us wanted dif- the Senator desire? the problems in the current disparate ferent provisions. I wish we could have Mr. DURBIN. Ten minutes. system we have where states issue kept the money in for school construc- Mr. HARKIN. I yield 10 minutes to driver’s licenses without uniformity tion, but that is the legislative process. the Senator from Illinois. and without cross-checking with sister We had good bipartisan cooperation in The PRESIDING OFFICER. The Sen- States. getting to the end result. ator from Illinois. In the aftermath of the most dev- I close by thanking my chairman, Mr. DURBIN. I thank the Chair. I astating attacks on America, we Senator BYRD, for all of his support and thank Senator HARKIN. He and I were learned that some of the terrorists who for the excellent leadership he has pro- colleagues in the House of Representa- were responsible for the September 11 vided to make this bill and the bioter- tives, and he would probably recall tragedy carried driver’s licenses issued rorism package possible. I thank our that Congressman Bill Natcher of Ken- to them by states that had extremely ranking member, Senator STEVENS. tucky on the Appropriations Com- lax application process. Again, at every step of the way he has mittee always chaired the sub- In Virginia, for example, it was re- been a strong supporter and has made committee that had this appropria- ported that a terrorist paid a complete sure we received the necessary alloca- tions, the Labor-HHS appropriations, stranger $50 in the parking lot of a De- tions for our bill. and he would come to the floor in his partment of Motor Vehicles to sign a Finally, this bill, as I said earlier, courtly and dignified way and an- sworn statement that vouched for the would not have been possible without nounce that this was the people’s bill, terrorist’s identity and in-state resi- the tireless and outstanding staff work. Labor-HHS appropriations was the peo- dence on his driver’s license applica- Our staffs have done a terrific job. I ple’s bill. tion. know they have not had much sleep in When Congressman Natcher took a It was also reported that 13 of the 19 the process. In fact, I understand the look at the rollcalls he had in support terrorists held driver’s licenses from night before last they broke at 6 of the bill, all the people were voting Florida, a state that—at that time—did o’clock in the morning. They worked for it. And I think it reflects what Sen- not require any proof of permanent

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00004 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S13777 residency from anyone. In fact, any is really easy to get, and you don’t ministration, and it develops model foreign tourist could walk into a motor even need a photo. programs and encourages uniformity vehicles office, fill out a form on his With this, he can easily obtain credit and reciprocity among the States. own, and get one. cards, library cards, video rental mem- My bill appoints AAMVA as the regu- I am certainly not asserting that the bership cards, etc.—all genuine forms latory document and biometric stand- September 11 attacks would have been of ID based on the fake original. ards-setting body, and tasks AAMVA avoided had the terrorists not had To begin the process of critically re- to develop the minimum verification these driver’s licenses. Clearly, there is viewing our Nation’s ID system, I am and identification requirements that little direct connection between the drafting legislation to enhance the re- each State must adopt for issues such cards these evil men carried and the liability of today’s most popularly-used as: ungodly deeds that they carried out. form of identification—the driver’s li- Uniform definition of in-State ‘‘resi- But what these driver’s licenses— cense and State ID card. dency’’; validation of source or ‘‘breed- which have now become the most wide- But before I explain what this bill er’’ documents to verify ID; establish- ly used form of personal ID in the does, let me be absolutely clear what it ment of legal presence in the country; country—gave these terrorists was the does not do. initial issuance procedures; and min- cover of legitimacy that allowed them This is not about creating a new na- imum security features. to walk around and mingle into Amer- tional ID card nor is it about devel- With congressional oversight, ican society without being detected. oping one centralized mega-database AAMVA would supervise the imple- A driver’s license is a key that opens that houses everyone’s personal data. I mentation by the States so that within many doors. In America, anyone who understand the concerns that Ameri- reasonable time, every State of our Na- can produce a valid driver’s license can cans have about going in that direc- tion will finally have uniform stand- access just about anything. tion, and I agree that we do not need a ards. It can get you a motel room, mem- national ID card which crosses that In implementing the uniform stand- bership in a gym, airline tickets, flight critical line of personal privacy. ards, it is also important to make sure lessons, and even buy guns—all with- Instead, my effort is focused on fix- the State DMVs have the support they out anyone ever questioning you about ing a problem that we can address im- need to verify the data they receive. who you are. If you can produce a driv- mediately and with significant results. Many DMVs across the country have er’s license, we just assume that you My bill is about making the driver’s li- complained that they receive little co- are legitimate, and you have a right to cense—which many consider as a de operation from Federal agencies who be here. facto national ID card—more reliable maintain databases containing infor- I realize that the investigations sur- and verifiable as a form of personal mation that could verify and confirm rounding September 11 are still ongo- identification than it is today. the information that people present at ing, but I think we can safely assume First, my bill requires all States and the DMV counter. what some of the problems were that U.S. territories to adopt a minimum For example, the Social Security led to the vulnerability we left for the uniform standard in issuing drivers’ li- number is one of the primary unique terrorists to exploit. censes. identifiers used across the country. Yet The terrorists took advantage of a If someone walks into a department many State DMVs have a difficult time combination of failures in our intel- of motor vehicles in Virginia, he should accessing records from the Social Secu- ligence, law enforcement, border pa- be required to provide the same meth- rity Administration to match the num- trol, aviation security, and other infra- ods of verifying who he is, and should ber with the name of the applicant of structures that, at some point, should go through the same set of require- the driver’s license. have been able to discover and identify ments, as someone who walks into a My bill addresses this problem by au- these individuals as threats. DMV in Illinois. thorizing the Social Security Adminis- As we enhance homeland security, it Why? Because if we don’t have uni- tration, Immigration and Naturaliza- is critical that we improve all of these formity among States, we will remain tion Service, law enforcement agencies areas. But no amount of data sharing vulnerable to those who exploit the and any other sources of appropriate, among Federal, State, local, and inter- system by forum shopping for a driv- relevant, real-time databases to pro- national law enforcement and regu- er’s license card in the weakest State. vide motor vehicle agencies with lim- latory agencies can be useful if one of With that initial ID card, they can go ited access to their records. the most significant pieces of the data on to obtain other ID cards and gain of- My bill would also authorize and fund that they transmit back and forth is ficial recognition. an initiative to ensure that all of these unreliable. Or, under reciprocity, they can trade databases are compatible and can com- And today, verification of personal in that driver’s license for a driver’s li- municate with each other effectively. identification is that weakest link in cense in another State with more strict Let me emphasize here that the ac- the process. application requirements even though cess to the records is for the limited Whenever someone presents identi- they may not have qualified to get a li- purpose of cross-checking and verifying fication to a government official, we cense in the other State. individuals’ name, date of birth, ad- must be able to rely on that ID to be If we mandate a minimum standard dress, social security number, passport sure that the person is in fact who he that is applied uniformly across the number if applicable, or legal status. says he is. That is the only way to en- Nation, we can ensure that anyone who It is not a carte blanche access to sure accurate results when a govern- presents any State-issued driver’s li- records that could contain many con- ment official inputs that person’s name cense can be trusted that he is in fact fidential and sensitive and private in- into various databases that agencies who he claims he is, since he would not formation. use. have been able to obtain the card but But we know that there may be un- But today, with hundreds of different for having initially verified his iden- scrupulous employees in any organiza- forms of ID cards that are in use across tity in the same way across the coun- tion, and some DMV employee, unfor- the Nation and with rampant identity try. tunately, may be tempted to cut cor- theft problems, it is nearly impossible To set up the criteria and implemen- ners. to know with certainty who a person is tation of the uniform standard, I have In order to discourage and prevent standing before you, no matter how enlisted the assistance of the American anyone from accessing these records many ID cards they can produce. Association of Motor Vehicle Adminis- without authorization, or use it in an To further aggravate the problem, trators AAMVA, which is a nonprofit unauthorized manner, my bill provides one form of ID often begets another, organization whose members consist of stiff penalties for any employee, agent, and can help someone assume a com- motor vehicle and traffic law enforce- contractor, or anyone else who engages pletely false identity. ment administrators of jurisdictions in in unlawful access to such records. For example, a person can start with the U.S., Canada, and Mexico. Similarly, my bill provides for inter- a fake driver’s license; and then pick AAMVA is the national expert on nal fraud within a department of motor up a fake Social Security number—this issues dealing with motor vehicle ad- vehicle where state employees access

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00005 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S13778 CONGRESSIONAL RECORD — SENATE December 20, 2001 DMV records to make fake IDs or to The Senator from Massachusetts. one group against the other. By adding personally profit in any way. Mr. KENNEDY. I think there is time the money even over the administra- My bill also encourages individuals that has been allocated to the Senator tion’s budget, it will mean additional to report any suspicious activities from Massachusetts. Am I correct? quality services for needy children. within such offices by providing whis- The PRESIDING OFFICER. There We were unable to get the funding for tleblower protection to those who un- has not at this point been time allo- the children who need IDEA, and that cover internal fraud. cated to the Senator from Massachu- is going to be the subject of my com- But setting up the uniformity and setts. ments this morning. data sharing are not enough to ensure Mr. KENNEDY. I see my friend and I also want to thank Senator HARKIN security. I also want to make sure that colleague from Minnesota. I am mind- and Senator SPECTER for the great the driver licenses and other forms of ful that there is only about 12 minutes progress that was made in funding the government identification cards issued remaining to the Senator from Iowa. health care priorities. Graduate Med- by departments of motor vehicles are The PRESIDING OFFICER. Fifteen ical Education was increased by $50 tamper proof so that there is no other remain. million; the National Health Service source from which someone can obtain Mr. DURBIN. Madam President, I Corps was increased by $24 million; and such a card. yield any time remaining under my al- Community Health Centers received an It is time to stamp out the multi-bil- location of time until Senator HARKIN’s increase of $175 million, which is the lion dollar cottage industry of fake return to the floor. largest increase in its history. IDs. The PRESIDING OFFICER. Without Of course Senator HARKIN was there My bill will make life miserable for objection, the Senator is recognized. in the beginning with his sub- those who manufacture, distribute, The Senator from Massachusetts. committee, understanding the impor- market, or sell fake driver’s licenses or Mr. WELLSTONE. Madam President, tance of getting the funding to deal other forms of government identifica- also to facilitate the Senator from with bioterrorism. His committee tion cards, by raising the stakes for Massachusetts, I think I have 10 min- worked with the Appropriations Com- those caught in the act. utes separately allotted; is that cor- mittee and had very instructive and Identity theft is a national problem, rect? productive hearings developing the and it deserves a national response. The PRESIDING OFFICER. The Sen- strong case for funding for bioter- That is why I propose to make it a Fed- ator is correct. The Senator from Mas- rorism as well as building a stockpile eral offense to engage in the fake ID sachusetts. of vaccines. I feel strongly that, just as business. Mr. KENNEDY. I thank the Chair. we have a petroleum reserve, we ought I have heard from State and local of- Madam President, first of all, I join to have a pharmaceutical reserve so ficials across the country who com- with others in commending our friend every child can be protected against plain that they didn’t have sufficient and colleague from Iowa for an excel- any of these potential threats. Senator HARKIN, in his committee, tools to go after these crooks who hang lent job in finding scarce resources and held very important hearings. Then out in parking lots and on the web lur- focusing them on the Nation’s needs. I Senator BYRD, with his strong leader- ing people to buy fake IDs think particularly of the great efforts ship was able, working with Senator In most States, such offenses are he made to make sure children in this HARKIN, to make sure we are going to dealt with a slap on the wrist and the country were going to have the bene- meet our Nation’s responsibility. All of criminals are back on the streets ea- fits, hopefully, of an education bill that can provide educational opportunities us are thankful for that leadership. gerly trying to earn back the fines For more than 200 years, Americans for young people in this country. As a they just paid with the sale of a few have fought battle after battle against result of the actions of Senator HARKIN more fake cards. discrimination in all its forms. We and his committee, more than 600,000 So I believe we need to federalize the have fought for racial equality to as- children who would not have partici- illegal nature of this activity and go sure that all people are judged not by pated in the title I program will par- after the manufacturers, distributors, the color of their skin. We have fought and marketers with full force of the ticipate in that program; 400,000 chil- for voting rights for women, and their law. dren who would not have participated rightful place in shaping the nation’s Likewise, I propose severe penalty in a bilingual program will participate democracy. We have acted to end dis- for anyone who purchases fake IDs, ob- in those programs; 200,000 children who criminatory practices against the el- tains legitimate ID cards in a fraudu- would not have had an opportunity for derly and disabled. lent manner, or engages in any activity after-school programs will benefit from Despite our many successes in the that misrepresents their personal iden- those programs; and there will be tens ongoing battle for fairer treatment for tification in anyway by using a fake or of thousands of children who will ben- all, there is one form of dangerous dis- altered government-issued ID card. efit from the 1.2 billion that he has had crimination that still pervades every Last year, I worked with Senator in special education. So this has been community in this country. Few fami- COLLINS to pass the Internet False an impressive achievement. lies have escaped facing this discrimi- Identification Prevention Act of 2000 When you look at the allocations for nation personally, or seeing the harm which addressed many of these prob- funding of these programs in the early it has caused to loved ones, friends, or lems. My bill is designed to ensure that part of the year, none of this was fore- acquaintances. This discrimination is this and other laws dealing with fake seen. I think he would agree with me not based on skin color, gender, or age. IDs which are already in the books are that we are going to have to do even It is based on an illness—mental ill- working, and if they are not, that we better in the future as we are facing ness. find ways to ensure they are enforced the challenges in education, and under- For years, millions of Americans against criminals. standing the importance that has in across this country with mental illness Since September 11, all of us have the lives of families in this country. have faced stigma and misunder- been working around the clock with a I also commend him for his extraor- standing. Even worse, they have been singular goal: enhancing security of dinary efforts in leading this body, denied the treatment that can cure or our homeland. I believe this bill will along with Senator HAGEL and our col- ease their cruel afflictions. Too often, help us seal some of the cracks in our league, Senator JEFFORDS, in the fund- they are the victims of discrimination internal security systems, and I urge ing for the IDEA program, which is re- practiced by health insurance compa- my colleagues to join me in this effort. lated to education. There are those nies. It is unacceptable that the Nation As chairman of the Governmental Af- who say it is not, but I think we under- continues to tolerate actions by insur- fairs’ Subcommittee on Oversight of stand, as indicated in the conclusion of ers that deny medically necessary care Government Management, I will be the debate on education, that two out for curable mental illnesses, while holding a hearing when we return from of three of the children who receive fully covering the cost of treatment for the holidays to address this problem. IDEA funding also qualify for Title I. physical illnesses that are often more The PRESIDING OFFICER. Who These, in many instances, are the same costly, less debilitating, and less cur- yields time? children. Shortchanging one group pits able.

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00006 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S13779 It is long past time to end this unjust crimination against any American di- resources to back up the authorization discrimination. minishes all Americans. They under- bills we passed? That will be the real Unfortunately, we have just suffered stand that discrimination is not only a test. a serious setback in the ongoing battle denial of our brotherhood as human I hope this President will meet that for the rights of the mentally ill. The beings, it denies our country the abil- test. I hope we get a budget from him House Republican leadership has ity to benefit from the talents and con- next year that reflects those priorities. blocked the Domenici-Wellstone Men- tributions of all our citizens. Again, on the issue of the mental tal Health Equitable Treatment Act, Surely, this time of renewed patriot- health parity, we had it on this bill. which assures fair health insurance ism in the struggle against the com- As the Senator from Massachusetts coverage of mental illness for the mil- mon enemy of terrorism is the wrong said—I know Senator WELLSTONE will lions of Americans who must live with time to retreat from our basic Amer- speak about it here in just a second— depression, post-traumatic stress, ano- ican ideals. we had it in the bill, and it was widely rexia, and other mental illnesses. Equal treatment for the mentally ill supported, almost unanimously, in the This important bill was approved by is not just an insurance issue, it is a Senate. It was widely supported in the the Senate Health, Education, Labor, civil rights issue. At its heart, mental House. But for some reason which I and Pensions Committee last month on health parity is a question of simple can’t really divine and understand, the a unanimous vote. It passed the Senate justice. House Members decided they were without a word of opposition. This suc- The House Republican leadership has going to vote against it. But it was the cess was achieved by the skilful leader- now succeeded in blocking action for moment in time when we could have fi- ship and hard work of the bipartisan this session of Congress. But the battle nally gotten over this, when we finally team of Senator PAUL WELLSTONE and goes on, and it will not end until true could have provided the same access to Senator PETE DOMENICI. parity has been achieved once and for health care for mental health problems That bill deserved to become law this all. The American people understand as we do for physical health problems. year, but the House Republican leader- that this battle is about justice for the Quite frankly, I believe we have ship has refused to act. Three House mentally ill and their families. The failed in this endeavor. It should have committees have jurisdiction over Senate and a majority of the House un- been done. We held as long as we could, parts of this legislation, but none has derstand it. It is time for the House Re- but when the House decided they would held a markup. Not one has held a sin- publican leadership to stop kowtowing not agree to it, we had to abide by that gle day of hearings. Now, operating be- to powerful special interests and listen and come back to the Senate without hind the closed doors of the conference to the voice of the American people— that provision in it. It is perhaps the committee, the House Republican lead- and to what is fair, just, and right for biggest glaring loophole in our entire ership has insisted on striking the all those who suffer from mental ill- appropriations bill that we are now re- amendment which the Senate added to ness. porting back to the Senate. the Labor, Health and Human Services I yield the remainder of my time. My friend from Minnesota, Senator Appropriations bill to achieve this es- The PRESIDING OFFICER. Who WELLSTONE, has been the leader in sential goal. yields time? The Senator from Iowa? fighting for the people with mental The House leadership has bowed to Mr. HARKIN. Madam President, be- health problems in this country to as- the pressure of insurers and big busi- fore I yield time to my good friend sure they have the same kind of health ness, at the peril of the health of mil- from Minnesota, let me again thank care coverage in their policies that lions of Americans. This legislation has Senator SPECTER, who showed up here people have for physical health prob- the support of the American people. It from the hearing in which he has been lems. He has been the leader. He has has the support of a broad bipartisan tied up. led the charge on it. I know he is not majority of the Congress. It is cospon- Let me thank Senator KENNEDY for going to give up. If I know anything sored by 65 Members of the Senate. his great leadership on the two areas about PAUL WELLSTONE, he is not going Over 240 Members of the House have on which he spoke. Basically, I want to to give up on this fight. We will be signed a letter urging the House leader- speak about education. I am privileged back again next year. I will look to ship to accept the Senate mental to serve on his committee and have for him next year for the same kind of health parity amendment as part of the almost all the time I have been in the leadership he provided this year, and appropriations bill. The collective will Senate. There isn’t anyone I could even for so many years in the past, for fi- of Congress has been flagrantly dis- think of mentioning here in the Cham- nally breaking down this last civil regarded. ber who has devoted more of his or her rights issue. I think Senator KENNEDY The message of the opponents on this life to the education of our kids and spoke about that. We have to confront basic issue is the same message of making sure they have a good quality it here in America. delay and denial that has been such a education than Senator KENNEDY of I yield the floor. shameful blot on our national history Massachusetts. It has been a privilege The PRESIDING OFFICER. The Sen- when it was applied to African-Ameri- and honor to work with him all these ator from Pennsylvania. cans, to women, to the disabled, and to years. Mr. SPECTER. Madam President, I the elderly. We have had a tough fight over the begin by congratulating my distin- One of the most disappointing things last year in reauthorizing the Elemen- guished colleague, Senator HARKIN, about this first session of Congress has tary and Secondary Education Act. I with whom I have worked closely on been the apparent retreat from the believe we came out with a good bill, the subcommittee which has the re- principles of equality and non- one that will move us forward. But sponsibility for appropriations for the discrimination. now, as I said at the time when the au- Departments of Labor, Health and On the education bill, the Congress thorizing bill passed: We have created Human Services, and Education for failed to provide needed funding for the authorization, now show us the many years. While I liked it better IDEA. The Congress retreated from the money. when I was chairman for 61⁄2 years, I be- commitment made a quarter of a cen- I think this is an appropriate time to lieve the work of the subcommittee tury ago to assure that every child say the President’s budget will be com- goes on seamlessly regardless of wheth- with disabilities would have a fair and ing down in a couple of months, the er TOM HARKIN is chairman or ARLEN equal chance for a quality education. budget for next year. The President, I SPECTER is chairman. I think Senator Today, Congress has once again re- know, is a strong supporter of the reau- HARKIN and I both recognize you can’t treated on a basic question of civil thorization of the Elementary and Sec- get anything done in Washington if you rights and nondiscrimination—fair ondary Education Act. It has all these are not willing to cross party lines and treatment for the mentally ill. requirements for schools for testing make accommodations. As one who has been involved in and teacher quality and improvement, May I just parenthetically note my these struggles to end discrimination all the things on which we agreed. But very deep disappointment that there throughout my career, I know that the will we have the resources? Will this has not been an agreement on a stim- American people understand that dis- President, in his budget, provide those ulus package before Congress adjourns,

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00007 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S13780 CONGRESSIONAL RECORD — SENATE December 20, 2001 according to the most recent reports. There is very important funding in agreement of the majority leader, that Perhaps that will be corrected before this bill. a freestanding bill would come up in we adjourn. If they would assign it to The health subcommittee has taken February or March. me and Senator HARKIN, I am sure we the lead in increasing the funding for While there is a consensus against could get it worked out. the National Institutes of Health— cloning of another individual, there has But this subcommittee report adopt- some $11 billion in the past several ap- been an unfortunate use of the termi- ed by the full committee—and now by propriations cycles. This year’s in- nology ‘‘therapeutic cloning,’’ which is both the Senate and the House—is one crease was $2.9 billion. Frankly, I really a transplant. That involves a of the most important pieces of legisla- would like to have seen more, but there process where there is the DNA for a tion to emerge from the Congress all were other priorities. person, for example, who has Parkin- year. The mark from our Senate sub- son’s, and that is inserted into the em- I regret that I could not be here at committee was $3.4 billion. The Na- bryo so the stem cells come out con- the outset when the bill was called up. tional Institutes of Health are the sistent with the patient, not being re- But I had reason to go to the hearing of crown jewels of the Federal Govern- jected by the patient. So that is some- the Commerce Committee which is ment—maybe the only jewels of the thing we will be working on further considering the nomination of John Federal Government. They have made with hearings set for our subcommittee Magaw to be the No. 3 man at that De- marvelous strides in conquering Par- into the next year. partment. I came back as soon as I kinson’s, perhaps with a sight 5 years We have taken a very firm stand on could to make brief opening comments down the road to cure Parkinson’s, Alz- the bioterrorism issue, with our bill before yielding to Senator WELLSTONE heimer’s, cancer, heart disease, and containing $338 million, and our sub- who I know is waiting to speak. virtually every known malady. committee taking the lead on having This bill is one of enormous impor- Three years ago, there burst upon the hearings which eventuated in the sup- tance to America. The total figure of scene the stem cell issue. Stem cells plemental appropriations bill having $123 billion represents an enormous in- are extracted from embryos. Now they an additional $2.5 billion for the needs vestment in critical aspects of our way are working on inserting the stem cells of State and local health departments of life. in the human brain to cure Parkinson’s purchasing vaccines against bioter- This bill contains very important or delay Alzheimer’s; or into the heart, rorism. funding and increases in the Depart- or into many other parts of the body. When the officials from the Centers ment of Labor on worker safety, fund- A controversy has arisen because for Disease Control came in, we admon- ing for the National Labor Relations some object to stem cell research be- ished, I guess is as good a word as any, Board, funding for the various other cause they are extracted from embryos. why they had not made the sub- agencies, the Mine Health Safety Embryos can produce life. But the ones committee aware of their needs before. Board, and OSHA. which are used for stem cell research It is no secret, you did not have to It is my hope yet that we will resolve would be discarded. Embryos are cre- wait until anthrax came into the Hart the critical question of ergonomics on ated from in vitro fertilization—cus- Building or the terrorist attack on which we await action by the Depart- tomarily about a dozen. Mainly three September 11 to realize the dangers of ment Of Labor subcommittee. The sub- or four are used, and the balance are bioterrorism. Had they told us what committee has held extensive hearings. being discarded. their needs were, we would have re- With respect to education, this bill If any of those embryos could sponded as we were responding with contains more than $48 billion. There is produce life, I think they ought to billions for NIH. an enormous increase for Federal par- produce life and ought not be used for But we worked through that. We ticipation in education. Last year’s stem cell production. If they are not asked them in an October 3 hearing for budget increased education funding by going to produce life, why throw them a list of all the bioterrorism threats $5 billion. This year’s budget increases away? Why not use them for saving and what it would cost to cure them. education funding by $8 billion more. lives? They produced the list, but we could Not only is there additional Federal We have put into this bill $1 billion not get it. CDC had to give it to HHS funding but, as a result of action by for sort of a test program on embryo which did not want to disclose it be- the Congress, we are directing more of adoption. Let us try to find people who cause HHS had to give it to OMB, the this money to the neediest students. will adopt embryos and take the nec- Office of Management and Budget. By Philadelphia, illustratively, under the essary steps on implanting them in a the time you finish playing alphabet new formula will get $115 million as op- woman to produce life. If that could be soup in Washington, virtually every- posed to $90 million last year. done and use all of the embryos, that thing is stymied. In the conference, we adopted an would be marvelous to produce life. But we had a subsequent hearing, and amendment to provide additional tar- But where those embryos are going to we got these figures, asking them what geted funding for those who were the be discarded, I think the sensible thing their professional judgment was as to neediest. We have provided very exten- to do is to use them for saving lives. what the funding should be. We have sive funding on Pell grants and on We have had in this Chamber an ef- taken very important steps to protect guaranteed student loans in our rec- fort by our subcommittee and then the America on bioterrorism. ognition that education is a priority full committee to expand Federal fund- Head Start has been a big issue for second to none and a major capital in- ing for research on stem cells. the subcommittee. There is additional vestment for the United States. Right now Federal funding is per- funding, as we have in community On a brief personal note, education mitted on stem cells once they have health centers, and elevating women’s was very heavily emphasized in the been extracted but not to extract health with additional funding. There Specter household, perhaps because my them. My view is, that is something in was an initiative taken in the early parents had so little of it. My father which the Federal Government ought 1990s by Senator HARKIN and myself to was an immigrant from Russia in 1911 to participate, with the extensive fund- create a separate unit on women’s and had no formal education but be- ing available now in NIH. health in the National Institutes of came very extensively self-educated. Our efforts to expand that activity, Health. There is additional funding for My mother only went to the eighth to some extent, was complicated by LIHEAP, the aging programs, AIDS, grade but increased her educational amendments offered by the Senator education, including education for dis- background on her own. But my broth- from Kansas, Mr. BROWNBACK, who advantaged children, school improve- er and my two sisters and I have been wanted to raise the cloning issue. We ment programs, impact aid, bilingual able to share the American dream be- deferred that until next year because it education, special education, student cause of our educational opportunity. would have tied up the bill for a pro- aid, and public broadcasting. When the President talks about leaving tracted period of time. As the slow Madam President, the conference no child behind, it is not only for chil- schedule of the Senate has worked, we agreement on the Labor, Health and dren, it is for college students, adult could have been tied up, in any event, Human Services, and Education bill be- education, and literacy training. but we made the judgment, with the fore the Senate today includes $123.1

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00008 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S13781 billion in discretionary spending, the To enable all children to develop and which provides part-time employment full amount of the subcommittee’s function at their highest potential, the opportunities for low-income elderly. budget authority allocation under sec- agreement includes $6.5 billion for the Also, the bill provides $893.4 million for tion 302(b) of the Budget Act. This Head Start Program, an increase of the National Institute on Aging for re- amount represents an increase of $14 $338 million over the last year’s appro- search into the causes and cures of Alz- billion over the fiscal year 2001 freeze priation. This increase will provide heimer’s disease and other aging re- level. services to 916,000 ch8ldren in 49,420 lated disorders; funds to continue geri- At this time, I want to take this op- classrooms across the nation. atric education centers; and the Medi- portunity to thank the distinguished To help provide primary health care care insurance counseling program. Senator from Iowa, Mr. HARKIN, the services to the medically indigent and For AIDS, the agreement includes in chairman of the committee, for his undeserved populations in rural and this amount is $1.9 billion for Ryan hard work in bringing this bill through urban areas, the agreement contains White programs, an increase of $103.1 the committee and on the floor for full $1.34 billion for community health cen- million. also included is $; $781.2 mil- consideration by all Senators. ters. This amount represents an in- lion for AIDS prevention programs at The programs funded within the sub- crease of $175.1 million over the fiscal the Centers for Disease Control; and committee’s jurisdiction provide re- year 2001 appropriation. These centers $2.341 billion for research at the Na- sources to improve the public health provide health care to nearly 12 million tional Institute of Allergy and Infec- and strengthen biomedical research, low-income patients, many of whom tious Diseases. assure a quality education for Amer- are uninsured. To enhance this Nation’s investment ica’s children, and offer opportunities Again this year, the conferees placed in education, the bill before the Senate for individuals seeking to improve job very high priority on women’s health. contains $48.5 billion in discretionary skills. I would like to mention several Included in the amount is $26.8 million education funds, an increase of $8.3 bil- important accomplishments of this for the Public Health Service, Office of lion over the fiscal year 2001 level, and bill. Women’s Health, an increase of $9.5 $4 billion more than the President’s The conference agreement includes million over last year’s funding level budget request. $23.3 billion for the National Institutes to continue and expand programs to de- For programs to educate disadvan- of Health, the crown jewel of the Fed- velop model health care services for taged children, the bill recommends eral Government. The $2.9 billion in- women, provide monies for a com- $12.3 billion, an increase of $2.6 billion crease over the fiscal year 2001 appro- prehensive review of the impact of over last year’s level. The agreement priation will support medical research heart disease on women, and to launch also includes $250 million for the Even that is being conducted at institutions an osteoporosis public educatoin cam- Start program to provide educational throughout the country. This increase paign aimed at teenagers. Also in- services to low-income children and will continue the effort to double NIH cluded is $265 million for family plan- their families. by fiscal year 2003. These funds will be ning programs; $124.4 million to sup- For school improvement programs, critical in catalyzing scientific discov- port the programs that provide assist- the agreement includes $7.8 billion, an eries that will lead to new treatments ance to women who have been victims increase of $1.6 billion over the fiscal and cures for a whole host of diseases. of abuse and to initiate and expand do- year 2001 appropriation. Within this Since September 11, 2001, Americans mestic violence prevention programs. amount, $2.850 billion will be used for a have become acutely aware that our In fiscal year 2001, the Labor-HHS new state grant program for improving enemies will use any means to murder Subcommittee held several hearings to teacher quality. The agreement also in- and maim large numbers of U.S. civil- explore the factors leading to medical cludes $700.5 million for educational ians. The use of biological agents is no errors and received testimony from technology state grants. longer a threat—it is a reality. The family members and patients detailing For impact Aid programs, the agree- committee has included $338 million to their experiences with medical mis- ment includes $1.143 billion, an in- coordinate state and local readiness, takes. The Institute of Medicine also crease of $150.1 million over the 2001 ap- stockpile appropriate pharmaceuticals, gave testimony and outlined findings propriation. Included in the rec- and build our public health infrastruc- from their recent report which indi- ommendation is: $50 million for pay- ture to respond to any act of bioter- cated that 98,000 deaths occur each ments for children with disabilities; rorism. The anthrax found in Senator year because of medical errors and $982.5 million for basic support pay- DASCHLE’s office and in the House and these deaths may cost up to $29 billion ments, $48 million for construction and Senate mail rooms, at postal facilities in excess health care expenditures and $50 million for payments for Federal in New Jersey and the District of Co- lost productivity each year. The con- property. lumbia and surrounding areas, in news ference report bill before the Senate For bilingual education, the agree- and other media facilities proves that contains $55 million to determine ways ment provides $665 million to assist in we must try and prevent, detect and to reduce medical errors. the education of immigrant and lim- quickly respond to any further acts of The agreement maintains $2 billion ited—English proficient students. This bioterrorism. The supplemental appro- for the low Income Home Energy As- recommendation is an increase of $205 priations bill which the Senate will sistance Program LIHEAP. The million over the 2001 appropriation. take up shortly contains an additional amount, when combined with the addi- For special education, the $8.6 billion $2,504,314,000 to address the needs of tional $300 million in emergency appro- provided in the agreement will help state and local health departments, priations, will provide a total of $2.3 local educational agencies meet the re- purchase smallpox vaccine, to upgrade billion for the LIHEAP program fiscal quirement that all children with dis- the capacity of laboratories and the year 2002 LIHEAP is the key energy as- abilities have access to a free, appro- CDC and NIH, and develop new vac- sistance program for low income fami- priate public education, and all infants cines at the National Institutes of lies in Pennsylvania and in other cold and toddlers with disabilities have ac- Health. weather states throughout the Nation. cess to early intervention services. The For the first time, the conference Funding supports grants to states to $1.2 billion increase over the FY’01 ap- agreement includes $1 million for a deliver critical assistance to low in- propriation will serve an estimated 6.5 public awareness campaign to educate come households to help meet higher million children age 3–21, at a cost of Americans about the existence of spare energy costs. $1,133 per child. While also supporting embryos and adoption options. During For programs serving the elderly, the 612,700 preschoolers at a cost of $637 per stem cell hearings, we were made agreement includes: $357 million for child. aware that there are 100,000 spare fro- supportive services and senior centers; For student aid programs, the agree- zen embryos stored in invitro fertiliza- $566.5 million for congregate and home- ment provides $12.3 billion, an increase tion clinics throughout the U.S. Many delivered nutrition services; and $206 of $1.6 billion over last year’s amount. infertile couples could choose to adopt million for the national senior volun- Pell grants, the cornerstone of student and implant such embryos if they were teer corps; $445 million for the commu- financial aid, have been increased by aware of that option. nity service employment program $250 for a maximum grant 34 million,

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00009 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S13782 CONGRESSIONAL RECORD — SENATE December 20, 2001 the work study program is held at the can end the discrimination against peo- year we will cover only serious mental FY ’01 level and the Perkins loans pro- ple struggling with this illness. illness. They know that 90 percent of grams is increase by $7.5 million. But the insurance companies won the their costs are associated with severe The agreement includes $380 million day. The insurance companies lobbied mental illness, and they know that if for the Corporation for Public furiously, and they got the House lead- they now all of a sudden say other ill- Boardcasting. In addition to the core ership to stop this. And the White nesses won’t be covered, the account- amount provided for CPB, the com- House did not give us the support. No. ants working for the insurance compa- mittee recommends $25 million for the The White House did not give us the nies will decide, not the doctors. conversion to digital broadcasting. support. Do you want to know what will hap- There are many other notable accom- House leaders say next year they will pen if all of a sudden we say we will plishments in this agreement, but for hold hearings. They never have in the only cover what they say is serious the sake of time, I have mentioned just last 6, 7, 8, 9 years, but they say they mental illness? The children will be the several of the kep highlights so that will hold hearings. The White House ones most discriminated against. the nation may grasp the scope and im- says: We want to help next year. They Suicide is the third leading cause of portance of this bill. could have helped this year. They could death of young people in the United In closing, Madam President, I again have helped now. It is not as if this dis- States. Every year 30,000 Americans thank Senator HARKIN and his staff and crimination just started yesterday. It take their lives. In 90 percent of these the other Senators on the sub- is not as if we have not been working situations it is because of depression, committee for their cooperation. on this legislation for years. But they and the cause is inadequately treated I thank my distinguished colleague did not help now. mental illness. Every 18 minutes a from Minnesota for his patience, if, in But I am confident, working with child or adult takes their life because fact, he was patient. Senator DOMENICI—I am proud to work of the unmitigated, searing pain of de- I yield the floor. And may I note for with him—that we will get their sup- pression and mental illness, and next the record that I am going to have to port next year. All of the groups and year, while Americans wait for fairness return to the Commerce Committee, organizations representing all the peo- in mental health care, thousands more but I will be back to carry forward on ple who struggle with this illness, and will die and millions more will suffer the floor consideration of the con- all the people who have loved ones who because the House of Representatives, ference report. struggle with this illness, will be back. the Republican leadership, couldn’t The PRESIDING OFFICER. The Sen- My hope is that next year there will stand up to the insurance industry and ator from Minnesota. be a thousand people who struggle with couldn’t do the right thing. And the Mr. WELLSTONE. I, first of all, say this illness and who have friends and White House couldn’t see its way to to Senator SPECTER that was very gra- loved ones who struggle with this ill- help. cious. Senator SPECTER and Senator ness who will go to the House of Rep- I thank the 67 Senators who helped. I HARKIN—Senator HARKIN and Senator resentatives and get 1 inch away from thank the 244 House colleagues who SPECTER—are the ones who have led us, these Members who have blocked this helped. I thank the 154 organizations the ones who have been the leaders on bill and say: We are not going to let that have supported this legislation. I this bill. So it was important to hear you do this to us any longer. We are thank the Coalition for Fairness in Senator SPECTER outline this legisla- men and women of worth and dignity Mental Illness Coverage, and I thank tion. I thank Senators HARKIN and and substance, and we refuse to accept all of the organizations that are in- SPECTER for their leadership. I am very this discrimination any longer. volved in that coalition. proud of what they have done, given They argue premiums would go up, I look forward to the day when peo- the resources with which we had to but the Congressional Budget Office ple with mental illness will receive de- work. said premiums would go up 0.9 percent. cent, humane, and timely health care. I also thank Ellen Murray and They say it would be too expensive, but It will be a good day for our country. Bettilou Taylor for their work. For a they do not talk about the $70 billion a A critical vote occurred in the Labor lot of us, there is a lot in this bill that year that we save by getting the treat- Health and Human Services conference is important to the people we love and ment to people who now work, who can committee earlier this week when 10 believe in in our States. It is just a fact work with more productivity, with less House members decided whether Con- that a lot of the real tough work is absenteeism, or whose children now gress would respond to the will of the done by the people who work with us. I will be in school and will not be in jail, people and establish fair treatment for thank them. incarcerated, and needing to receive people with mental illness. They de- I also thank Ellen Gerrity because social services help. cided they would not. The Mental she is the one who has really driven, The Washington Post editorialized Health Equitable Treatment Act (S. for me, and for lots of people, the men- last week that ‘‘the new asylums of the 543), supported by 67 Senators and 244 tal health work. I am blessed to have 21st century’’ for people struggling House members, was included in the her working with me. Senator DOMEN- with mental illness are the prisons. I Senate version of the LHHS appropria- ICI and I are blessed to have her work- visited some of these juvenile ‘‘correc- tions bill, but not in the House version. ing with us. tional’’ facilities. I have seen these Most of the 32 conferees had expressed On the vote which occurred 2 days children who never should have been strong support for this bill, and thus ago in the conference committee, 10 there. had their chance to vote their con- House Members basically decided to I say to Senator HARKIN, if there had science and resist the enormous pres- eliminate the mental health parity leg- been treatment for them on the front sure that had been brought to bear by islation which would have ended the end, they would have never wound up the business and insurance industries discrimination against people who incarcerated. to kill this measure. Unfortunately, struggle with this illness. This was the I went down to a hearing in Houston these lobbyists were joined by the chance to end the discrimination, and with SHEILA JACKSON-LEE. She asked House Republican Leadership and the they decided not to do so. me to come down there. It was packed White House to stop this bill in its There were 67 Senators who were co- with desperate parents who talked tracks. They succeeded when the 10 sponsors of this legislation. It passed about the fact that their children House Republicans voted against ac- our committee—the HELP Com- ended up in jails because they couldn’t cepting the mental health provision. mittee—with the leadership of Senator get any coverage or help anywhere Mental health parity was dropped. KENNEDY, by a 21-to-0 vote. It was else. And the leadership of the House of House leaders are reportedly prom- unanimously accepted on the floor of Representatives, doing the bidding of ising to hold hearings on parity for the Senate. And 244 House Members the insurance companies, blocked this next year, and I strongly urge them to called on the conference committee: bill, and the White House did not help. do so, and to allow no further delay to Please, don’t block this legislation. Now with the insurance industry we pass a full mental health parity bill. I This is an idea whose time has come. have something we have to be careful look forward to continuing my long You can do something very good. You about. They are saying maybe next partnership with Senator DOMENICI and

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00010 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S13783 working with the House to ensure that friends, who cite cost issues fail to rec- cause of death of young people in the such hearings are fair and represent all ognize that proper treatment of mental U.S. Each year, 30,000 Americans take those with mental illness. Mental illness actually saves money. They ig- their lives, and in 90 percent of these health parity supporters on the House nore the $70 billion per year cost of un- situations, the cause is inadequate side have waited nine years for the au- treated mental illness. They also fail treated mental illness. This is one of thorizing committees to do just that to recognize that our society picks up the true costs of delaying this bill that and move the mental health parity leg- the cost of untreated mental illness in I hope those who voted against this un- islation in the House. The White House any case, for untreated illnesses don’t derstand: Every 18 minutes, a child or too has expressed support for working just go away. Children with mental ill- adult takes their lives because of the on mental health parity legislation ness may end up in public institutions, unmitigated, searing pain of depression next year, though they had no expla- foster care, or jail because their par- or other mental illness. Next year, nation for their opposition to moving ents cannot afford their care. Adults while Americans wait for fairness in the bill now. They were very pleased who have private insurance are often mental health care, thousands will die with the bill as it was voted out of the forced into public health care systems and millions will suffer. Senate HELP committee with a vote of financed through State governments, Parity will do so much to end the un- 21–0 on August 1, 2001. Yet, when Amer- Medicare, and Medicaid. These systems fair cost requirements, access limits, icans with mental illness needed the are then forced to take scarce re- and personal indignities that people support of their President, now more sources from those who have no insur- seeking mental health care have been than ever, he was not there for them. ance. Families are forced into bank- forced to endure. Parity in private in- Sometimes opponents claim that ruptcy; lives are broken; and lives are surance has been shown to save other ending unfair limits for mental health lost. health care costs and would revolu- care will cost too much, yet the Con- We also know that the number of tionize our country and our health care gressional Budget Office reported that people with serious mental illnesses in system in extraordinarily humane the bill would increase total premium America’s jails and prisons today is ways. Congress was stopped from doing costs by only 0.9 percent. Moreover, five times greater than the number in this right now because of a few mem- this estimate does not even take into state mental hospitals. That is what bers and their lobbyist friends. We account the cost savings that have re- happens when people, including those must not let these powerful lobbyists sulted in overall health care costs with jobs and private health insurance, subvert the will of the Congress and when mental health care is properly do not get adequate care. How can our the will of the 154 supporting organiza- covered. Nor does it consider the cost country tolerate this kind of abuse of tions of the 2001 Mental Health Equi- savings in the workplace when absen- basic human rights? Prisons, as the table Treatment Act and the millions teeism is reduced, and productivity is Washington Post editorial noted last of Americans they represent whose increased. Something else is lurking Monday, are ‘‘the new asylums of the lives are touched by the pain, suffering, behind the claim of cost problems. 21st century.’’ This criminalization of and sorrow of mental illness. What is lurking there is the continuing the mentally ill is inhumane. It is also I thank the 67 Senate and the 244 and widespread discrimination against emotionally and financially costly, and House colleagues who worked hard to people with mental illness in our a testament to government failure at do the right thing for people with men- health care system. all levels. We cannot afford to lose any tal illness, and I urge them to not take The stigma against people with men- more lives and we must not let those this defeat lightly. I especially want to tal disorders has persisted throughout with mental illness go on being treated thank the 154 organizations who sup- history. As a result, people with men- as criminals or as unworthy of medical ported this legislation and fought for tal illness are often afraid to seek care. its passage, particularly the Coalition treatment for fear that they will not be Opponents also often try to defeat for Fairness in Mental Illness Coverage able to receive help, a fear all too often mental health parity legislation by and its member organizations: Amer- realized when they encounter outright claiming they want to cover mental ill- ican Managed Behavioral Healthcare discrimination in health coverage. Why ness, but only ‘‘serious’’ mental illness, Association, American Medical Asso- is it that because the illness is located and thus they would limit coverage to ciation, American Psychiatric Associa- in the brain, and not the heart or liver a selected list that is also designed to tion, American Psychological Associa- or stomach, that such stigma persists? discriminate, most of all against chil- tion, Federation of American Hos- One of the most serious manifesta- dren. The bill that was developed this pitals, National Alliance for the Men- tions of stigma is reflected in the dis- year was carefully crafted to address tally Ill, National Association of Psy- criminatory ways in which mental the health needs of all those with men- chiatric Health Systems, and National health care is paid for in our health tal illness as well as the concerns of Mental Health Association. care system. Health plans routinely set employers, and it did so without dis- We must return quickly to this bill aside ‘‘mental’’ illnesses as distinct criminating against particular diag- early in 2002 and accept no excuses from ‘‘physical’’ illnesses in health noses. The insurance industry is very from the Administration or the House care coverage. Inexplicably, they set an aware that 90 percent of their costs as- for any further delay. I look forward to arbitrary number of hospital days or sociated with mental illness are associ- the day when people with mental ill- visits, or a higher level of copayments ated with the most severe, as is true ness receive decent, humane, and time- or deductible, as a way to handle men- for other kinds of health issues as well. ly health care. It will be a good day for tal health care. There is no clinical or And yet, they want to oppose coverage our country. scientific evidence that mental illness, for life-threatening illnesses that ac- Mr. SARBANES. Madam President, or any illness for that matter, can al- countants, and not doctors, have listed today I would like to bring to your at- ways be treated successfully within a as not ‘‘serious’’. Any effort on the part tention title VI of the Labor, Health fixed number of days. Nor is there any of the lobbyists, the House Repub- and Human Services Appropriations economic or moral justification for licans, or the White House to limit cov- bill (H.R. 3061), which is the ‘‘Mark to charging people with mental illness erage by particular diagnoses should be Market Extension Act of 2001’’. This more money for their care. One can stopped immediately. It is just another legislation was passed unanimously out only conclude that health plans try to way to try to stop the effort to provide of the Committee on Banking, Housing save money at the expense of people fairness in treatment for people with and Urban Affairs on August 1, 2001. We with mental illness, and they bank on mental illness. worked closely with both the House the stigma that accompanies this ill- We know that mental illness is a and the Administration to craft the ness to discourage individuals from de- real, painful, and sometimes fatal dis- final product that is now part of this manding better care. What a sad com- ease. It is also a treatable disease. The conference report. mentary on our health care system, gap between what we know from sci- The legislation will ensure that HUD and on our country. entific research and clinical expertise continues to have the authority to re- The opponents, business and insur- and what we do on behalf of patients is structure the rents and the mortgages ance lobbyists and their Congressional lethal. Suicide is the third leading of its FHA-insured section 8 project-

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00011 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S13784 CONGRESSIONAL RECORD — SENATE December 20, 2001 based portfolio. These properties have The Committee expects the Department to The Committee believes that none of these been operating for the past 20 years on continue to keep track of the properties results is desirable: properties with rents long term rental subsidy contracts, after they have been restructured. This is that are above market should go through the many of which are currently paying particularly important for a number of prop- program in order to get a thorough financial erties that have had rents reduced to market and physical review. Moreover, whatever or- above-market rents. The program we levels without the debt being restructured. ganization is establishing the comparable seek to reauthorize provides HUD with These properties have been put on a ‘‘watch market rent, whether it is the PAE or the the tools to reduce those rents to mar- list’’ to make sure the owners continue to PHA, the results should be consistent so that ket levels and to restructure the under- maintain the properties, despite the reduc- the owner’s decision to stay in the program lying mortgages so that the new, lower tion in cash flow. The Committee expects or opt out is not determined by who is doing rents will be sufficient to cover the HUD to act expeditiously if these properties the rent study. In this section, the Com- debt. At the same time, the program show any signs of deterioration. mittee directs the Secretary to establish provides for the rehabilitation of these Section 611: Mark-to-Market Amendments procedures for ensuring rents as determined Subsection (a)—Authorizes $10 million per through this program, the contract renewal projects, and requires another long process, or for enhanced vouchers for the term commitment to keep the prop- year for tenant groups, non-profit organiza- tions, and public entities for technical as- same units are reasonably consistent. erties affordable. sistance and capacity building to meet the Section 614: Eligible Inclusions for Renewal The appropriators asked that this re- purposes of the Act. This provision allows Rents of Partially Assisted Buildings authorization be incorporated into this the funding to be carried over. Entities that Allows certain projects that are partially appropriations bill in order to make qualify for debt forgiveness under section assisted with section 8 to get budget-based use of the $300 million in savings that 517(a)(5) automatically qualify for grants rents up to comparable market rents, suffi- this legislation will generate. We were under this subsection. cient to cover the costs of maintenance of happy to accommodate this request. (b) Exception rents are allowed for up to 5 the project. I would like to thank Senator REED, percent of the total number of projects sub- Section 615: Eligibility of Restructuring Projects ject to a portfolio restructuring agreement. for Miscellaneous Housing Insurance the Chairman of the Subcommittee on (c) Provides for notice to residents of the Amends Section 223(a)(7) of the National Housing and Transportation, Senator Secretary’s rejection of an assistance plan. GRAMM and Senator ALLARD for their (d) Allows certain properties to go through Housing Act to allow HUD-held mortgages hard work, support and cooperation the program upon transfer of ownership, at on properties in the program to be treated as FHA-insured loans to expedite the refi- throughout this process. the request of the new owner. (e) Provides the Secretary the authority to nancing process. In addition, it extends the Below is a detailed description of maximum term of FHA-insured and HUD- title VI, which I would like to submit reduce the amount of funds contributed by owners for rehabilitation in cases where ad- held mortgages refinanced under this sub- for the record on behalf of myself and ditional features such as an elevator or air section to 30 years. Senators REED, GRAMM and ALLARD. conditioning are added to the project and SUBTITLE B—OFFICE OF MULTIFAMILY HOUSING I ask unanimous consent that the were not previously in that project. This ASSISTANCE RESTRUCTURING two statements be printed in the flexibility extends to these additional fea- Section 621: Reauthorization of Office and RECORD. tures only; the Committee expects the Sec- Extension of Program There being no objection, the mate- retary to continue to apply the full match- Extends the program to October 1, 2006. Ex- rial was ordered to be printed in the ing funds requirement for all standard reha- tends the Office until October 1, 2004. RECORD, as follows: bilitation. Sections 622 and 623: Appointment of Director (f) Allows owners of previously eligible STATEMENT OF SENATOR SARBANES, SENATOR and Vacancy in Position of Director projects to opt back into the program. HUD GRAMM, SENATOR REED, AND SENATOR believes that the section 8 contracts on some Establishes the procedure for appointing ALLARD ON EXTENSION OF MARK-TO-MARKET properties that should have gone through the the Director of OMHAR and for filling vacan- PROGRAM FOR MULTIFAMILY ASSISTED mark-to-market program were renewed cies. The Director would be appointed by the HOUSING IN FY-20 LABOR-HHS APPROPRIA- without going through the program. This President, but would no longer be a Senate- TIONS LEGISLATION subsection allows such properties, at the confirmed position. The following represents the views of the owner’s consent, to get back into the pro- Section 624: Oversight by Federal Housing Chairman and Ranking Members of the Sen- gram, if the property would have been other- Commissioner ate Committee on Banking, Housing, and wise eligible. Places OMHAR under the jurisdiction of Urban Affairs and its Subcommittee on (g) Redefines second mortgages to allow in- the FHA Commissioner/Assistant Secretary Housing and Transportation regarding the clusion of miscellaneous costs, subject to of Housing, as requested by the Administra- ‘‘Mark-to-Market Extension Act of 2001,’’ likelihood of repayment. This subsection tion. This is being done to enable better co- which is part of the Labor-HHS Appropria- also allows the Secretary to assign the sec- ordination between the Office of Housing and tions Conference Report. ond mortgage to an entity that meets the OMHAR. The Committee does this with the SUBTITLE A—MULTIFAMILY HOUSING MORTGAGE conditions for debt modification or forgive- understanding, as expressed by Assistant AND ASSISTANCE RESTRUCTING AND SECTION 8 ness. The Congress intends this additional Secretary Weicher at the Subcommittee’s CONTRACT RENEWAL tool to be used in the same framework as June 19, 2001 hearing, that HUD has ‘‘every Section 602: Purposes modification or forgiveness. For example, if expectation that [OMHAR] will continue to The bill includes a number of new purposes HUD would otherwise have forgiven a second be fully dedicated to [the mark-to-mark] that reflect some of the concerns of the Com- mortgage, we would expect the Secretary to work.’’ mittee and a number of stakeholders regard- assign the mortgage to the eligible owner The Committee also expects the FHA Com- ing the administration of the mark-to-mar- without any additional requirements, if that missioner to work conscientiously to main- ket (MTM) program. For example, concerns is the preference of the non-profit owner. tain the highly qualified staff that exists at were raised that the private participating (h) Retains program exemption for elderly OMHAR. At the hearing, the GAO witness administrative entities (PAEs) might not be projects financed through section 202 that noted several times of the need to retain providing the amount of rehabilitation and have been refinanced. OMHAR’s ‘‘contract staff that have unique reserves necessary for the properties to meet Section 613: Consistency of Rent Levels Under expertise in this program. . . .’’ the 30 years affordability commitment re- Enhanced Voucher Assistance and Rent Section 625: Limitation on Subsequent quired by the law. Likewise, it is important Restructurings Employment for the PAEs, both public and private, to cor- The Mark-to-market program is designed Prohibits certain OMHAR employees from rectly calculate project expenses. Underesti- to lower section 8 rental payments that are subsequent compensation from parties with mation of expenses, as with inadequate in- above market and, where necessary, restruc- financial interests in the program for a pe- vestment in rehabilitation, will undermine ture the underlying debt in eligible prop- riod of 1 year. the physical and financial condition of the erties. To determine if the contract rent is SUBTITLE C—MISCELLANEOUS HOUSING properties. Failure to account realistically above, below, or at market levels requires PROGRAM AMENDMENTS and accurately for the expenses of running a that a rent comparability study be done. The Section 631: Extension of CDBG Public Services project could result in the project under- Department raised a concern that some rent Cap Exception writing being too ‘‘tight’’ with too little debt comparability studies may be inaccurate, re- restructured, and too little cash flow. In sulting in a number of contracts being re- Extends the expanded public services cap such cases, unexpected events, such as spikes newed at above market rents. Alternatively, for Los Angeles for an additional 2 years. It in energy prices, could force the property the Committee has heard reports that is expected that this will be the last in a into default. Such an outcome would under- OMHAR is setting rents too low, or that the number of extensions. cut the purpose of this program, which is in- value of vouchers being provided to residents Section 632: Use of Section 8 Enhanced tended to reposition these properties both in the case of opt outs are being set too high, Vouchers for Prepayments physically and financially to continue to thereby encouraging owners to avoid the Extends eligibility for enhanced vouchers serve low-income residents for the long haul. mark-to-market program. to projects that prepaid in 1996.

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00012 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S13785 Section 633: Prepayment and Refinancing of outlays from prior-year budget author- H.R. 3061, CONFERENCE REPORT TO THE DEPARTMENTS Loans for Section 202 Supportive Housing ity are taken into account, discre- OF LABOR, HEALTH AND HUMAN SERVICES, AND EDU- Makes the refinancing provisions for elder- tionary outlays for H.R. 3061 total CATION, AND RELATED AGENCIES APPROPRIATIONS ly (section 202) projects in the American $107.791 billion in 2002. The conference ACT, 2002—Continued Homeownership and Economic Opportunity report provides virtually the same [Spending comparisons—Conference Report, in millions of dollars] Act of 2000 self-enacting. The Committee be- amount of budget authority as did the lieves that the provisions enacted last year General should have already been implemented by Senate-passed bill, which provided purpose Mandatory Total HUD. This Section makes it clear that the $123.37 billion. The conference report is at the Senate subcommittee’s section Outlays ...... 1,834 0 1,834 provisions from the 2000 Act are self-enact- House-passed: ing, and do not need implementing regula- 302(b) allocation for both budget au- Budget Authority...... 0 0 0 tions from the Department. thority and outlays. Outlays ...... 963 0 963 Senate-passed: CHANGES TO THE 2001 AND 2002 APPROPRIATIONS Included in the conference report’s Budget Authority...... 1 0 1 COMMITTEE ALLOCATIONS AND THE BUDG- total is $300 million in emergency-des- Outlays ...... 42 0 42 ETARY AGGREGATES ignated funding for the low-income 1 For enforcement purposes, the budget committee compares the con- Mr. CONRAD. Madam President, sec- home energy assistance program, ference report to the Senate 302(b) allocation. tion 314 of the Congressional Budget Notes.—Details may not add to totals due to rounding. Totals adjusted (LIHEAP), which will result in new for consistency with scorekeeping conventions. In addition, the conference Act, as amended, requires the chair- outlays of $75 million in 2002. In ac- report provides $18.874 billion in advance appropriations for fiscal year man of the Senate Budget Committee cordance with standard budget prac- 2003. to adjust the budgetary aggregates and tice, I am adjusting the appropriations Mr. DURBIN. Mr. President, during the allocation for the Appropriations committee’s allocation by the amount this summer’s debate on the ESEA re- Committee by the amount of appro- of that emergency-designated spend- authorization legislation, I offered an priations designated as emergency ing. amendment to increase the authoriza- spending pursuant to section Additionally, H.R. 3061 also provides tion for the new math and science part- 251(b)(2)(A) of the Balanced Budget and $18.874 billion in advance appropria- nerships program from $500 million in Emergency Deficit Control Act of 1985, tions for 2003 for employment and the Senate bill to $900 million in fiscal as amended. The conference report to training, health resources, child care, year 2002. Raising the authorization to H.R. 3061, the Departments of Labor, and education programs. Those ad- this level brought math and science Health and Human Services, and Edu- vances are specifically allowed for partnership participated and science cation, and Related Agencies Appro- under the budget resolution adopted partnership funding to the same level priations Act for 2002 includes $300 mil- for 2002, and, combined with all other as the Reading First program also cre- lion in emergency-designated funding advance appropriations considered by ated in the education bill. My amend- for the Low-Income Home Energy As- the Senate to date, fall within the ment passed by voice vote. sistant Program. That budget author- limit imposed by the resolution. Fur- During that debate, I joined several ity will result in $75 million in new ther, the report adopts the Senate pro- of my colleagues in emphasizing the outlays in 2002. vision extending the Mark-to-Market critical need to improve math and Pursuant to section 302 of the Con- Program for multifamily assisted hous- science education in our nation’s ele- gressional Budget Act, I hereby revise ing. That provision, which is included mentary and secondary schools. U.S. the 2002 allocation provided to the Sen- in the above totals, is estimated to students consistently score lower than ate Appropriations Committee in the save $355 million in 2002. Finally, the their counterparts in other nations in concurrent budget resolution in the report includes language that extends math and science, yet more than one in following amounts. by one year certain benefits regarding four high school math teachers and mental health parity. Because that nearly one in five high school science TABLE 1.—REVISED ALLOCATION FOR APPROPRIATIONS provision includes language directing teachers lack even a minor in their COMMITTEE, 2002 how its costs are to be counted for main teaching field. The training and [In millions of dollars] budgetary purposes, it violates section preparation of math and science teach- Budget au- 306 of the Congressional Budget Act of ers must be a top priority. thority Outlays 1974. I am disappointed that the Labor– I ask unanimous consent that a table HHS–Education Appropriations bill Current Allocation: General Purpose Discretionary ...... 549,444 551,304 displaying the budget committee scor- funds the math and science partner- Highways ...... 0 28,489 ing of this report be printed in the ships at just $12.5 million in fiscal year Mass Transit ...... 0 5,275 Conservation ...... 1,760 1,232 RECORD. 2002— a level far below the $450 million Mandatory ...... 358,567 350,837 There being no objection, the mate- authorized by Congress for this pro- Total ...... 909,771 937,137 rial was ordered to be printed in the gram in the final ESEA legislation. RECORD, as follows: But I am encouraged by language in- Adjustments: General Purpose Discretionary ...... 300 75 cluded in the conference report that Highways ...... 0 0 H.R. 3061, CONFERENCE REPORT TO THE DEPARTMENTS states, Mass Transit ...... 0 0 OF LABOR, HEALTH AND HUMAN SERVICES, AND EDU- Conservation ...... 0 0 the conferees believe math providing high- Mandatory ...... 0 0 CATION, AND RELATED AGENCIES APPROPRIATIONS quality math and science instruction is of ACT, 2002 critical importance to our nation’s future Total ...... 300 75 [Spending comparisons—Conference Report, in millions of dollars] competitiveness, and agree that math and Revised Allocation: science professional development opportuni- General Purpose Discretionary ...... 549,744 551,379 General Mandatory Total ties should be expanded. The conferees there- Highways ...... 0 28,489 purpose fore strongly encourage the Secretary and Mass Transit ...... 0 0 Conservation ...... 1,760 1,232 Conference report: the State to continue to fund math and Mandatory ...... 358,567 350,837 Budget Authority ...... 123,371 272,937 396,308 science activities within the Teacher Quality Outlays ...... 107,791 272,968 380,759 Grant program at a comparable level in fis- ...... 910,071 937,212 Senate 302(b) allocaiton:1 Budget Authority ...... 123,371 272,937 396,308 cal year 2002. Outlays ...... 107,791 272,968 380,759 Mr. CONRAD. Mr. President, I rise to President’s request: I understand that the conferees in- offer for the RECORD the Budget Com- Budget Authority ...... 116,382 272,937 389,265 tend that at a minimum, the current Outlays ...... 105,957 272,968 378,925 mittee’s official scoring for the con- House-passed: commitment to the training of math ference report to H.R. 3061, the Depart- Budget Authority ...... 123,371 272,937 396,308 and science teachers will be upheld. Outlays ...... 106,828 272,968 379,796 ments of Labor, Health and Human Senate-passed: The conference report urges the Sec- Services, and Education, and Related Budget Authority ...... 123,370 272,937 396,307 retary of Education and the States to Agencies Appropriations Act for fiscal Outlays ...... 107,749 272,968 380,717 use the Teacher Quality grant pro- CONFERENCE REPORT gram, funding available for math and year 2002. COMPARED TO The conference report provides Senate 302(b) allocation: 1 science partnerships and through other $123.371 billion in discretionary budget Budget Authority ...... 0 0 0 federal grants to bring math and Outlays ...... 0 0 0 authority, which will result in new President’s request: science education is a level that ade- outlays in 2002 of $50.089 billion. When Budget Authority ...... 7,043 0 7,043 quately prepares our young people for

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00013 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S13786 CONGRESSIONAL RECORD — SENATE December 20, 2001 the demands for the demands of the 21 viding funding for this type of re- The legislation also ensures our Na- century. I hope that States and dis- search. tion’s most vulnerable, our children, tricts continue to increase their efforts Mr. HARKIN. I commend my col- senior citizens and the disabled, have in the area. I look forward to working league from California on her thought- access to quality health care. with my colleagues next year to fur- ful comment on the dangers of small- Funds are also provided for impor- ther support strong math and science pox. I agree with her that much more tant programs that assist working fam- education in schools. research on new vaccines and therapies ilies needing child care, adult daycare SMALLPOX VACCINATION FOR FIRST is needed and am proud of the many for elderly seniors, and Meals on RESPONDERS companies across the nation that are Wheels. Mrs. BOXER. Mr. President, small- leaders in this important effort. For all the good in this bill, I ask: pox is a deadly disease that if not As my colleague indicates, the CDC How many other worthy programs are treated within the few first days after has recently developed a strategy for being shortchanged because of our pa- initial exposure, can cause death in 1 vaccination in response to a smallpox rochial appetites? Again, I find myself out of 3 cases. Clearly, this is not a dis- outbreak and the funding provided in in the unpleasant position of speaking ease to take lightly. the Labor, Health and Human Services about parochial projects in yet another The problem with smallpox, unlike and Education Appropriations bill will conference report. I have identified our recent experience with anthrax, is help the CDC in carrying out this goal. nearly $1 billion in earmarks. The total that it is highly contagious, and not Additionally, I believe that the fund- amount in porkbarrel spending appro- simply infectious. Thus, one person can ing provided for the Office of Emer- priations bills considered so far is $15 spread the disease to hundreds of peo- gency Preparedness for bioterrorism- billion. ple within a matter of days. related activities can be especially use- I would like to start out by asking In this new climate of threatened ful in making the vaccine available to unanimous consent to print in the bioterrorist attacks, it is essential that first responders. RECORD the Web site of the U.S. Senate Mrs. BOXER. I thank my distin- we prepare ourselves for the worst case Committee on Appropriations. guished colleague from Iowa for his scenario and not simply sit back and There being no objection, the mate- supportive remarks, and hope that Sec- hope for the best. rial was ordered to be printed in the retary Thompson will seriously con- This fact was highlighted in dis- RECORD, as follows: sider his suggestion. turbing detail in the ‘‘Dark Winter’’ UNITED STATES SENATE COMMITTEE ON I truly believe that a small cadre of APPROPRIATIONS exercise conducted by the Center for vaccinated first responders from each Civilian Biodefense Studies at John AUTHORIZATIONS AND APPROPRIATIONS: WHAT’S of the 50 states would provide an indis- THE DIFFERENCE? Hopkins University. pensable complement to the CDC staff ‘‘Dark Winter’’ showed that an aer- Authorization laws have two basic pur- already inoculated. poses. They establish, continue, or modify osol release of smallpox virus would Mr. HARKIN. I agree with my col- spread easily, and that the dose needed federal programs, and they are a prerequisite league from California that vacci- under House and Senate rules (and some- to cause infection is very small. The nating first responders should be given times under statute) for the Congress to ap- exercise showed that 20 confirmed serious consideration as the CDC and propriate budget authority for programs. cases could result in as many as 300,000 the Office of Emergency Preparedness Some authorization laws provide spending additional infections and 100,000 deaths pursue bioterrorist activities. directly. In fact, well over half of federal in just 3 short weeks. Mrs. BOXER. As we continue to dis- spending now goes to programs for which the authorizing legislation itself creates budget In light of this, the Federal Govern- cuss funding to prepare for potential ment is working quickly to ensure that authority. Such spending is referred to as di- bioterrorist attacks, we should also rect, or mandatory, spending. It includes public health officials at all levels of have confidence in this country’s abil- funding for most major entitlement pro- government are able to work together ity to react to a smallpox outbreak grams. (Some entitlements are funded in an- should an outbreak occur. promptly. Ensuring that first respond- nual appropriation acts, but the amounts I applaud the steps already taken by ers are ‘‘armed’’ with a vaccination and provided are controlled by the authorization the Centers for Disease Control to vac- in a position to respond is a responsible law that established the entitlement.) The cinate some of its first response per- way to achieve this goal. authorization laws that provide direct spend- sonnel and to ensure the safety of The PRESIDING OFFICER. The Sen- ing are typically permanent, but some major those vaccinations. ator from Arizona. direct spending programs, such as the Food Stamp program, require periodic renewal. But I believe it is not only essential Mr. MCCAIN. Madam President, I Discretionary spending, which is provided to have a trained and ready team in thank the conferees on this bill for in the 13 appropriation acts, now makes up place at the federal level to respond their hard work. This is important leg- only about one-third of all federal expendi- immediately to a possible outbreak, I islation that provides Federal funding tures. For discretionary spending, the role of believe that such a vaccination pro- for the Departments of Labor and the authorizing committees is to enact legis- gram should be expanded. Health and Human Services, and Edu- lation that serves as the basis for operating That is why I sent a letter to Health cation, and related agencies. a program and that provides guidance to the and Human Services Secretary Thomp- I am pleased to see increased funding Appropriations Committees as to an appro- son urging him to work with Governors for many programs, especially in light priate level of funding for the program. That guidance typically is expressed in terms of to identify and vaccinate key first re- of our Nation’s war on terrorism. This an authorization of appropriations. Such au- sponders in all 50 States. I specifically includes an increase in funding for bio- thorizations are provided either as specific asked Secretary Thompson to instruct terrorism activities and for strength- dollar amounts (definite authorizations) or CDC officials to reach out to Governors ening our Nation’s public health infra- ‘‘such sums as are necessary’’ (indefinite au- and work with them to create lists of structure. This funding is critical for thorizations). critical first responders in their States, all our States, localities, and our Na- In addition, authorizations may be perma- and to authorize those vaccinations tion as a whole to ensure that we are nent and remain in effect until changed by the Congress, or they may cover only spe- within the next 60 days. ready to respond to all contingencies. cific fiscal years. Authorizations that are We must also work quickly to make There is funding to ensure our Na- limited in duration may be annual (per- sure we have at least 290 million doses tion’s food supply remains safe and re- taining to one fiscal year) or multiyear (per- of smallpox vaccine available to treat sources for helping meet the health taining to two, five, or any number of spe- the entire population as well as sup- care needs of the uninsured. In addition cific fiscal years). When such an authoriza- port additional research on antiviral to funding key public health programs, tion expires, the Congress may choose to ex- therapies and other vaccines to help this bill provides funds for helping tend the life of a program by passing legisla- control and contain any bioterrorist States and local communities educate tion commonly referred to as a reauthoriza- our children. Furthermore, it funds our tion. Unless the underlying law expressly attack. prohibits it, the Congress may also extend a In California, many companies are scientists who are dedicated to finding program simply by providing new appropria- already making progress toward such treatments, if not cures, for many ill- tions. Appropriations made available for a antiviral therapies for smallpox, and I nesses, including Parkinson’s, Alz- program after its authorization has expired hope that we will not delay in pro- heimer’s, and ALS. are called ‘‘unauthorized appropriations.’’

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00014 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S13787 Longstanding rules of the House allow a mand the majority of the federal budget. In- appropriated in general appropriation bill on point of order to be raised against an appro- terest payments will continue to be a major the ground that the restriction violates this priation that is unauthorized. During initial drain on the Treasury, and the remaining rule, the rule shall be construed strictly and, consideration of a bill in the House (which amount will be divided among discretionary in case of doubt, in favor of the point of by precedent originates appropriation bills), programs: 2006—$209 billion, interest; $1,476 order. unauthorized appropriations are sometimes billion, entitlement; $6266 billion (27%), dis- 7. Every report on general appropriation dropped from the bill. However, the House cretionary. bills filed by the Committee on Appropria- Committee on Rules typically grants waivers Compare the forty-year difference side-by- tions shall identify with particularity each for unauthorized appropriations that are side: 1966—$9 billion, interest; $43 billion, en- recommended amendment which proposes an contained in a conference agreement. In the titlement; $90 billion (63%), discretionary. item of appropriation which is not made to Senate, there is a more limited prohibition 2006—$209 billion, interest; $1,476 billion, en- carry out the provisions of an existing law, a against considering unauthorized appropria- titlement; $626 billion (27%), discretionary. treaty stipulation, or an act or resolution tions. RULE XVI—APPROPRIATIONS AND AMENDMENTS previously passed by the Senate during that Both House and Senate rules require that TO GENERAL APPROPRIATIONS BILLS session. when the Committees on Appropriations re- 1. On a point of order made by any Senator, 8. On a point of order made by any Senator, port a bill, they list in their respective com- no amendments shall be received to any gen- no general appropriation bill or amendment mittee reports any programs funded in the eral appropriation bill the effect of which thereto shall be received or considered if it bill that lack an authorization. The informa- will be to increase an appropriation already contains a provision reappropriating unex- tion in the committee reports, however, dif- contained in the bill, or to add a new item of pended balances of appropriations; except fers somewhat from the information shown appropriation, unless it be made to carry out that this provision shall not apply to appro- in this report. This report covers programs the provisions of some existing law, or trea- priations in continuation of appropriations that at one time had an explicit authoriza- ty stipulation, or act or resolution pre- for public works on which work has com- tion that either has expired or will expire. viously passed by the Senate during that ses- menced. Unlike the lists shown in the Appropriations sion; or unless the same be moved by direc- Mr. MCCAIN. I will quote from it. It Committee reports, this report does not in- tion of the Committee on Appropriations or says: clude programs for which the Congress has of a committee of the Senate having legisla- never provided authorizations of appropria- Authorization laws have two basic pur- tive jurisdiction of the subject matter, or poses. They establish, continue, or modify tions. For example, some Treasury Depart- proposed in pursuance of an estimate sub- ment programs have never received explicit federal programs, and they are a pre- mitted in accordance with law. requisite—— authorizations of appropriations. They re- 2. The Committee on Appropriations shall ceive appropriations nonetheless because the not report an appropriation bill containing I emphasize, ‘‘a prerequisite’’—— authority to obligate and spend funds is con- amendments to such bill proposing new or under House and Senate rules . . . for the sidered ‘‘organic’’—inherent in the under- general legislation or any restriction on the Congress to appropriate budget authority for lying legislation or executive action that expenditure of the funds appropriated which programs. originally empowered the Treasury to per- proposes a limitation not authorized by law I found that entertaining and amus- form particular functions. if such restriction is to take effect or cease As mentioned above, many laws establish ing because we have this list of hun- to be effective upon the happening of a con- dreds of projects which are not author- programs with authorizations of discre- tingency, and if an appropriation bill is re- tionary appropriations that do not expire. ported to the Senate containing amendments ized and are funded at whatever level Both the Appropriations Committee reports to such bill proposing new or general legisla- the appropriators see fit. and this CBO report exclude programs with tion or any such restriction, a point of order I will go through a number of them. that type of authorization because its effect may be made against the bill, and if the Some of them are entertaining; some of is permanent.’’ point is sustained, the bill shall be recom- them make you sad. I would like to WHERE DOES THE MONEY GO? mitted to the Committee on Appropriations. pose a question to the manager of the While the size of the annual federal budget 3. All amendments to general appropria- bill, if I could have his attention. I see tion bills moved by direction of a committee has increased in dollar terms (reflecting in- that there is $1 million for the Shake- flation, increased population and economy) having legislative jurisdiction of the subject over the years, the proportion available for matter proposing to increase an appropria- speare Rose Theater to enhance edu- common government services has shrunk tion already contained in the bill, or to add cational and cultural programs and dramatically. Competition among federal new items of appropriation, shall, at least language literacy in the arts for stu- agencies for funding is heating up. one day before they are considered, be re- dents and the general public. Over the last three decades, discretionary ferred to the Committee on Appropriations, Could the manager of the bill tell me spending has been cut significantly to ac- and when actually proposed to the bill no where the Shakespeare Rose Theater is commodate rapid growths in other expenses. amendment proposing to increase the located? Discretionary spending covers everything amount stated in such amendment shall be I admit there are hundreds here. I from road building to police protection to received on a point of order made by any medical research to our national defense— Senator. can understand why the manager of the most of the government services with which 4. On a point of order made by any Senator, bill wouldn’t know why it is a paltry $1 Americans are familiar. All other spending is no amendment offered by any other Senator million, but could the manager of the mandatory—required by law regardless of which proposes general legislation shall be bill tell me where the Shakespeare what is left over for discretionary spending. received to any general appropriation bill, Rose Theater is located? Mandatory spending includes entitlements nor shall any amendment not germane or Mr. HARKIN. Might I inquire of the such as Social Security and Medicare, and relevant to the subject matter contained in Senator, what committee does the Sen- the enormous interest the U.S. must pay the bill be received; nor shall any amend- ator—— every year to finance the national debt. ment to any item or clause of such bill be re- Three decades ago, nearly two-thirds of the ceived which does not directly relate there- Mr. MCCAIN. I only have 10 minutes. federal budget was available for discre- to; nor shall any restriction on the expendi- Can you tell me where the theater is tionary programs: 1966—$9 billion, interest; ture of the funds appropriated which pro- located? That is a pretty straight- $43 billion, entitlement; $90 billion (63%), dis- poses a limitation not authorized by law be forward question. It deserves a cretionary. received if such restriction is to take effect straightforward answer. In the 1970s, entitlement spending jumped, or cease to be effective upon the happening Mr. HARKIN. You know, Madam placing a crimp on discretionary spending: of a contingency; and all questions of rel- President, I would just say to the Sen- 1976—$27 billion, interest; $189 billion, enti- evancy of amendments under this rule, when ator, he asked me a question—— tlement; $475 billion, (45%), discretionary. raised, shall be submitted to the Senate and By the mid-1980’s, interest payments on be decided without debate; and any such Mr. MCCAIN. I withdraw the ques- the national debt began to rise: 1986—$136 amendment or restriction to a general appro- tion. billion, interest; $462 billion, entitlement; priation bill may be laid on the table with- Mr. HARKIN. You asked me a ques- $438 billion (42%), discretionary. out prejudice to the bill. tion. Now he won’t let me answer it. By 1996, entitlement spending took half of 5. On a point of order made by any Senator, The PRESIDING OFFICER. The Sen- the budget pie. In just 30 years, the amount no amendment, the object of which is to pro- ator from Arizona has the floor. left over for roads, police, defense, and most vide for a private claim, shall be received to Mr. MCCAIN. I asked for an answer. I other government services shrunk to a third any general appropriation bill, unless it be didn’t get an answer. of the budget: 1966—$241 billion, interest; $859 to carry out the provisions of an existing law billion, entitlement; $535 billion (33%), dis- or a treaty stipulation, which shall be cited Mr. HARKIN. The answer is there are cretionary. on the face of the amendment. 1,600 different items in this bill. If the Current budget projections show the same 6. When a point of order is made against Senator has about 60 seconds of pa- trend. By 2006, entitlement spending will de- any restriction on the expenditure of funds tience, I will find out for him.

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00015 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S13788 CONGRESSIONAL RECORD — SENATE December 20, 2001 Mr. MCCAIN. I thank you, but it is million. This is a new program author- The PRESIDING OFFICER. The Sen- an example. The manager of the bill ized by the Senate-passed version of ator from Iowa is recognized. doesn’t even know where a place that the ESEA authorization bill. It was not Mr. HARKIN. Madam President, the we are giving $1 million of the tax- requested by the administration. Senator from Arizona never mentioned payers’ dollars is located. It is interesting to note that even the projects in Arizona in the amount Mr. HARKIN. It is in Massachusetts. though the United States does not en- of $6.7 million. Let me read a couple: Mr. MCCAIN. That is instructive. gage or support commercial whaling— University of Arizona for a border That is instructive about the prolifera- we are against commercial whaling— health initiative. There is one for Pima tion of the pork in this legislation. we are willing to provide $5 million for Community College in Arizona for mi- Let me cite a few others: $500,000 for a program highlighting the practice. nority students to attend college. the Mattatuck Museum in Waterbury, Another issue of concern is the re- There is the Pima County Department CT; $800,000 for the Mind-Body Insti- port’s inclusion of $25 million for of Health and the University of Ari- tute of Boston, MA—the Mind-Body In- equipment and facilities to assist pub- zona. Here is one for Herd Museum in stitute of Boston, MA?—$150,000 for the lic broadcasters with the transition to Phoenix to develop exhibits and edu- Lady B Ranch Apple Valley, CA, for digital television. I would remind my cational programs about the historic the Therapeutic Horseback Riding Pro- colleagues that this request was never Phoenix Indian School and the Native gram. the subject of a hearing by the Com- Americans who attended the school. I want to go back to what the Sen- merce Committee, which is the author- Does the Senator want us to knock ator said, that there are 1,600 ear- izing committee. I don’t believe that all those out? marks. So the manager of the bill Congress is exercising sound fiscal pol- Mr. MCCAIN. Absolutely. I have op- doesn’t even know where $1 million icy when it decides to appropriate mil- posed every earmarked project for my goes. Maybe $1 million isn’t much to lions of dollars to publicly funded tele- State, and I have done so for all the the manager of the bill, but it sure as vision stations so that they may pur- years I have been here. I am sorry the heck is a great deal of money to my chase the latest in digital technology. Senator from Iowa doesn’t know that. constituents. I won’t pursue this. Rather, the Corporation for Public Mr. HARKIN. The Senator knows full Again, $150,000 for the Lady B Ranch Broadcasting should have come before well that the other Senator from Ari- Apple Valley, CA, for the Therapeutic the Commerce Committee to discuss zona supports those. Mr. MCCAIN. The other Senator does Horseback Riding Program. If you with us the best way to achieve the not support those. It came from the asked the average citizen if a thera- goals of public broadcasters and ensure House. peutic horseback riding program was that taxpayer dollars are spent wisely. Mr. HARKIN. So does the Congress- at the top of their priority list, I don’t So as the manager said, there are man. think so. But therapeutic horseback 1,600 earmarks in this bill, very few of Mr. MCCAIN. It came from the riding has to be earmarked for Apple them, if any, previously authorized; all House. He doesn’t even know where the Valley, CA. of them are in violation of the Web site theater is in London. Continuing, $500,000 for the Univer- the Appropriations Committee has. Mr. HARKIN. The Congressman also sity of Washington Center for Health The overwhelming majority of these supports them. I want to mention a Workforce Studies in Seattle, WA. By earmarks are for members of the Ap- couple of other projects. The Senator the way, there is $800,000 for the Se- propriations Committee, so that those mentioned the Bishop Museum located attle King County Workforce Develop- States that are not represented on the in Hawaii. The other one mentioned ment Council, Seattle, WA, for the pur- Appropriations Committee are short- was in Massachusetts. The Senator pose of retraining displaced Boeing em- changed. There is no competition. made fun of a horseback riding project ployees. Now in the Defense appropria- There is no authorization. There is no that he kind of mocked. I don’t know tions bill, which is coming up very hearing. We are talking about a billion that program intimately, but I remem- shortly, we will have a $26 billion bail- dollars here. It is remarkable. ber when it was brought up. This is a out for Boeing. Yet we still need The rules of the Senate have to be program in California for therapy for $800,000 to retrain their workers. That changed. The rules of the Senate have severely mentally retarded and brain- is a good deal for Boeing. to be changed so that those of us who injured kids. It is a program where The list continues: don’t support these programs will have they have found that by using this kind $750,000 for the Center for Textile an opportunity to have our States’ pri- of therapy, it allows these kids to have Training and Apparel Technology at orities considered as well. a little bit better life. I am not a med- Central Alabama Community College; I have something that my staff put in ical expert. I don’t know how this $200,000 for the University of Arkan- front of me regarding the Rose. Appar- works. But according to the Member of sas Medical Services BioVentures Incu- ently, it is in London, England. It was Congress who brought this up, this is bator for equipment needed for wetlabs built in 1587 by Philip Henslowe. The something the health care profes- used in training; Rose was the first theater on London’s sionals believe is very important to $800,000 for Bishops Museum. I dare Bankside. Its repertory included plays these disabled kids. not ask the manager where Bishops by Kyd, Jonson, Shakespeare, and Mar- I am told that the Senator from Ari- Museum is, but I can find out for my- lowe. In 1989 its remains were discov- zona may be slightly mistaken, that self. ered and partially excavated amidst a the Senator from Arizona did ask for Continuing with the list: $200,000 for blaze of international press coverage. some of these projects. The Pima Coun- the Mississippi State University, Cen- Are we now giving a million dollars ty Department of Health in Arizona, a ter for Advanced Vehicular Systems, to a theater in London, England? Re- $400,000 grant was asked for by the Sen- Mississippi State, MS, for automotive markable. Put in without any hearing, ator from Arizona, Mr. MCCAIN—I am engineering training. without any authorization, without sorry, Mr. KYL. It was asked for by the The list goes on and on and on. Here anything? We are going to give a mil- other Senator from Arizona. Certainly, is something that is really enter- lion dollars for that? Are the British so the other Senator from Arizona —I taining, or saddening, depending on bad off that they need a million dollars can’t speak for him—would not say whether or not you are a taxpayer. For from us for a theater in London? just this is mine and nobody else’s. So example, it earmarks $5 million, $5 We have homeless people wandering I say that there are four projects in Ar- million for a program never author- the cities of America and we are going izona asked for by Senator KYL from ized—never a hearing through the Com- to give a million dollars to the Rose Arizona. I want the record to show merce Committee—$5 million for a pro- Theater? Remarkable. Remarkable. that. gram to promote educational, cultural Madam President, it is outrageous, Mr. MCCAIN. Madam President, do I apprenticeships, and exchange pro- disgraceful, and it is an abrogation of have any time remaining? grams for Alaska Natives, native Ha- the process of legislation. Again, I will The PRESIDING OFFICER. The Sen- waiians, and their historical whaling continue to oppose this and try to ator does not have any time remaining. and trading partners in Massachusetts. bring this to the attention of the The Senator from Kansas is recog- That is remarkable, remarkable—$5 American people. nized.

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00016 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S13789 Mr. BROWNBACK. I believe I have 10 So they said, first, they wanted to a point of order, requiring a 60-vote minutes. put it right on top of this site. Then supermajority, against situations such The PRESIDING OFFICER. Correct. the courts and local opinion said no. as this happening to the Huron Indian Mr. BROWNBACK. I yield a minute Then they wanted to build the casino Cemetery in Kansas City, KS. This just to the Senator from Arizona. on stilts on the site. They said no to is not right. I am going to raise this Mr. MCCAIN. The Senator from Iowa that, also. So they bought an adjacent issue next year. I hope my colleagues, knows that Senators speak for them- building. That was blocked. That was and those on the Appropriations Com- selves. My record is clear over many blocked in the courts. The State of mittee, will work with us to correct years. I have never supported ear- Kansas fought it. such an injustice. marks, not because of its virtue or The four recognized tribes of Kansas Thank you, Madam President. I yield vices, but because it didn’t go through fought against it. I fought against it. the floor. an authorizing procedure. The Pima The other Senator from Kansas fought The PRESIDING OFFICER. Who County College project may be good against that. It has been stopped. The yields time? and beneficial, and the therapeutic people of Kansas City don’t want this Mr. HARKIN. Madam President, how horseback riding project might be good taking place there. much time is remaining? and beneficial. I happen to be ranking OK. So then the tribe from Oklahoma The PRESIDING OFFICER. The Sen- member of the Commerce Committee. litigates it in court. They are defeated ator from Iowa has no time remaining. Those are under the oversight of our at the Tenth Circuit Court of Appeals. Mr. HARKIN. How much time does Committee and they should be author- They can’t do this casino in Kansas, Senator SPECTER have remaining? ized. It is disgraceful the way these are according to the Tenth Circuit Court of The PRESIDING OFFICER. Twenty- put in. Appeals. The Governor doesn’t want it, nine minutes. The Senator from Kansas will soon we Senators don’t want it, and the If no one yields time, time is charged bring out an example of a problem of tribes don’t want it. Then they go into equally to both parties. legislating on appropriations. There is a conference committee—Department Mr. HARKIN. Madam President, par- a major issue in his State concerning of Interior—and in the conference, at liamentary inquiry: If a quorum call is Indian gaming on which there has the last minute, a half-sentence, hand- instituted, does that time run against never been a hearing, never consider- written note was put in that overturns both sides? ation. It was stuck into an appropria- the Tenth Circuit Court of Appeals. The PRESIDING OFFICER. Under a tions bill, and it has profound effects Now they are going to be able to go for- previous order, it will run against all on the State of Kansas. He is here, and ward and build a casino next to this sides. rightfully upset, to say the least, about beautiful cemetery. Mr. HARKIN. In that case, I suggest the fact that he, as a Senator from This is a sacred site to a number of the absence of a quorum. Kansas, never had any input into it and Native Americans in the United States. The PRESIDING OFFICER. The it was stuck into an appropriations But because in a conference committee clerk will call the roll. bill. they got a half sentence in, written in The legislative clerk proceeded to I tell the Senator from Kansas that I pencil, it will overturn all of this work call the roll. will do everything I can to help him in by all of these people. Is that right? Is Ms. LANDRIEU. Mr. President, I ask the authorizing process to see that the that fair to take place? Is that the way unanimous consent that the order for process is carried out in a legitimate the system is supposed to work? I don’t the quorum call be rescinded. fashion. think that is what is supposed to take The PRESIDING OFFICER (Mr. NEL- The PRESIDING OFFICER. The Sen- place. SON of Florida). Without objection, it is ator from Kansas is recognized. So we came back in the Labor-HHS so ordered. INDIAN GAMING appropriations bill and on the floor we Ms. LANDRIEU. Mr. President, I ask Mr. BROWNBACK. Madam President, worked with the managers and said: unanimous consent for 5 minutes to I want to draw attention to something Look, this isn’t right. Let’s correct speak on the underlying bill and an- that happened in my State that I think this in this appropriations bill. other unrelated subject. is completely wrong in the appropria- The managers in the Senate, to their The PRESIDING OFFICER. Against tions process. The Senator from Ne- great credit—and I thank the Senator whose time? vada is aware of this and stated yester- from Iowa—said: You are right; we will Ms. LANDRIEU. Whatever time is re- day his support to help me out with correct it in the Labor-HHS bill. Then maining. this problem. I hope I can get the at- it got stripped out of the bill because The PRESIDING OFFICER. Without tention, as well, of the Senator from the House would not recede. We were objection, it is so ordered. Iowa. This is what happens in the worst trying to correct what took place in Ms. LANDRIEU. I thank the Chair. situations in the appropriating com- the dark of night through this con- Ms. LANDRIEU. Mr. President, I re- mittees. It is not about money or an ference committee report on Labor- alize there is time remaining and I appropriation for a particular line HHS, and we were not able to get it thank the Senators for yielding. I have item. In a conference committee, a half done. spoken many times on this issue, but I sentence was written in the report that Now we are left with the possibility want to take another minute to speak overturned a Tenth Circuit Court of of a casino being built next to a ceme- about the underlying appropriations Appeals decision about Indian gaming tery by an out-of-State tribe that the bill, particularly the educational as- in Kansas. It affects the Huron Ceme- tribes in Kansas, the Governor of Kan- pects and components of this legisla- tery in Kansas City, KS. sas, and the Senators from Kansas do tion. There were a few things I didn’t You can look at this picture. This is not want, and it took place in the Ap- get to say that I would like to add for not a casino site. This is a cemetery propriations Committee process. the RECORD. site, Huron Indian Cemetery. It has We need a rule change so it does not I thank the chair of the sub- been there several hundred years. It is happen again. I am here today to tell committee, the Senator from Iowa, Mr. on the banks of the Kansas River. It is my colleagues that I am going to be HARKIN, for his extraordinary work in a beautiful site, maintained well. What working on this next year to get this this area for helping bring forward an took place was this. We have four rec- overturned, to get this clarified. There appropriations bill that reflects the ognized Indian tribes in Kansas, and all were no hearings on this issue—none— positive changes of the authorization four have casinos. A fifth tribe from in either the House or the Senate. It bill, to have the appropriations reflect outside the State, the Wyandotte tribe was stuck in at the last minute. It those new strategies for improving our of Oklahoma, bought adjacent land and should not have taken place, yet it did, schools and strengthening our move for said: We want to make it into a res- and now it is the law of the land, in reform, for strengthening the notion ervation and casino, even though our spite of what all the people involved in that every child can learn, that we can tribe is in Oklahoma. We want to do this think about it. really have excellence in every school, this in Kansas City because this looks This is clearly not appropriate. I that we are not happy with the status lucrative to us. hope we can put a rule in place to raise quo, that we recognize some schools

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00017 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S13790 CONGRESSIONAL RECORD — SENATE December 20, 2001 are terrific, some teachers are wonder- mitment and focus to education, we Domenici-Wellstone bill. It is moving ful, but the system itself is not as in- never would have had $3 billion added right along. It cleared the Senate, vigorated and as strong as it should be, to the Education bill. It would have sending a powerful signal to those in and it can be improved. been left on the table and there would America by the millions who are sick That is what this legislation says: No not be the energy to get it. I know he with these diseases, their relatives, and to the status quo and yes to change; no is disappointed, but I hope he hears my their friends. They had an extremely to process and yes to progress; no to words this morning and is encouraged. high hope that ran through their bod- ‘‘incomes’’ and yes to outcomes; and There are those in the Chamber who ies and in many cases gave them a su- yes to results. recognize without his complete com- perb ray of hope that maybe, in the fu- In this holiday season it is a wonder- mitment and dedication to the school- ture in the greatest land on Earth, we ful gift to ourselves, to our Nation, to children of this Nation, this bill would would have insurance—subject to some change the way we are appropriating be short a lot of money. But because he limitations and some exclusions, but funding for public schools and for all put his political muscle behind it and across this land the large businesses schools in this Nation. did what he needed to do, we have seen would be offering insurance coverage Today marks a historic moment. For a tremendous increase in these invest- for those who were mentally ill who the first time in 35 years since the Fed- ments. He should be happy and grate- worked for them; that we would begin eral Government says we will work in ful. I know he is disappointed in special to see the same thing happen there partnership with States to help edu- education, but I commit to him I will that has happened to people with heart cate our children, it needs to be a local work diligently to see if we cannot conditions. We would have doctors tak- responsibility, but it must be a na- shore up that part of the bill. ing care of them. We would have re- tional priority. Our Nation cannot be I ask unanimous consent to have search taking place. We would have strong, it cannot be great, it cannot be printed in the RECORD the list of the centers and facilities for research and economically as vital if we don’t have moneys the States will receive, addi- for care growing up across this land, good schools. In Florida and Louisiana, tional funds. Every State and county public or private. We know that would that does not begin in kindergarten or will be helped, but we will get re- be happening. Sure enough, we could end with a college degree; that is pre- sources to those families and commu- cast our eyes, cast our vision not too kindergarten, early childhood edu- nities that need a helping hand. It is a far ahead of us, and say we are doing cation, and lifelong learning. historic moment. It is clearly in our Nation’s interest the right thing, serious mental illness The PRESIDING OFFICER. The Sen- to help States and local communities is going to receive treatment. ator from New Mexico has 5 minutes educate and bring schools to our citi- I ask consent I have 5 additional min- remaining. zens. The best place to begin doing that utes. Mr. DOMENICI. Did I lose time? The PRESIDING OFFICER. Without is in the home. The second best place The PRESIDING OFFICER. There objection, it is so ordered. to shore that up is in schools, starting was a quorum call in progress that was Mr. DOMENICI. Insurance companies at the lower grades and working up. As evenly divided. will be putting forth the kind of cov- a mother with young children, I know Mr. DOMENICI. Mr. President, fellow erage necessary. What a day this will directly and very personally that those Senators, let me take a few minutes. be. What a time that will be. What joy first few years, the foundation, are im- First, I rise with a sense of great sad- will come to those of us who have portant. ness and yet a feeling of great hope. This bill is historic because in that worked so hard. But more importantly, You really can have both votes in your- whole partnership, for the first time, what joy will come to the millions of self at the same time. Two nights ago we have actually funded something we parents who will now see their chil- Mental Health Equitable Treatment of talk about. We targeted the grants for dren, when they probably have the first 2001 was dropped from the Labor-HHS title I. We have funded the effort to signs of these dread diseases, and these help get the money to the districts appropriations conference report. The parents are going to be able to say we that need a helping hand, that have dif- Senate passed a wonderful bill. We sent are not going to go broke trying to ficulty raising either sales tax or prop- it to the House as part of Labor appro- take care of an uninsured child with erty tax or industrial tax and cor- priations, even though it was a major, one of these dread diseases. What a porate tax because the tax base is not major authorizing bill. We had our marvelous, wonderful thing America there, but the children are. The tax hopes high because in the Senate the will have done. base might not be there, but there are support was high. The time had come What do we hear? Over on the side, a smart children who live in that county. to make sure, 2 years from now in the dull but powerful beat of the insurance The tax base is not there, but their United States, most insurance policies companies that are saying: This hasn’t parents are working hard. would cover the mentally ill. That been covered before. Let’s not cover it This bill, for the first time, sends the meant to this Senator in 8 or 10 years now. We hear a large undercurrent say- new money through the targeting for- we would be able to look back and see ing: We have never done this before. We mulas to bring that help to poor and a very different America when it came should not start now. It is going to cost disadvantaged children so they can to street people, people who during too much. take the new tests, pass them, and cold winter months we see on the To them let me say: We hope you will meet the new standards of account- grates of our cities with the blankets join us when this bill clears both ability. wrapped around them. Houses, and when at that point you It is an extraordinary accomplish- In our jails and prisons, we know have to start writing insurance for peo- ment. I thank the Senator from that now and for the ensuing months ple who are sick with schizophrenia, Vermont. I know he cast his vote—it those who have mental illnesses such manic depression, those kinds of dis- was a difficult vote to cast—against as distress that comes from depression, eases—and there are many other dis- the authorization bill because we failed manic depression, schizophrenia, and a eases that will be covered. Research to fully fund special education. I am whole host of serious mental diseases, will start to take place because these disappointed in that. I will work with are more apt to be found in the county kinds of sick people are carrying on him and pledge to work with Demo- jail or the State jail than they are in their backs a package of assets, assets crats and Republicans to pick up more treatment centers, be they treatment that are the payments that will be of our fair share of those special edu- centers to which you take your sick forthcoming from the sick person run- cation dollars. I will work to reform person, and they are run privately or ning to the doctor, to the clinic, to the special education, to make sure it publicly. More mentally ill people, men research facilities. What a change and works for our students, our families, and women, are in jails and facilities how America will have grown up when our children who are greatly chal- not intended for them than there are in that occurs. lenged, mentally and physically, as facilities intended for them. There are a lot of workers in this well as our teachers. We in the Senate, with the leadership vineyard. There are thousands upon Without Senator JEFFORDS, the Sen- and help of my friend, Senator thousands of Americans who are busy ator from Vermont, his untiring com- WELLSTONE, have a bill. We call it the in this field, in their home cities, in

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00018 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S13791 their States. Many came to town this Mr. HARKIN. Again, I inquire, if The PRESIDING OFFICER. Without past week to show up at the conference there is a quorum call, then the time objection, it is so ordered. The Senator meeting where the House and Senate runs on both sides? is recognized. met on this Labor, Health and Human The PRESIDING OFFICER. It will Is someone yielding time? Services appropriations bill. Why did all be charged to the Senator from Mr. SPECTER. I yield 2 minutes of they show up? They showed up because Pennsylvania. my time. the Senate had attached to that bill a Mr. HARKIN. I suggest the absence of The PRESIDING OFFICER. The Sen- thorough covering of these diseases. a quorum. ator from Texas is recognized for 2 We knew it was a chance because the The PRESIDING OFFICER. The minutes. House would rather have this consid- clerk will call the roll. Mr. GRAMM. Mr. President, I think ered by another committee, not an ap- The senior assistant bill clerk pro- we need to take the opportunity to do propriations committee. We got our ceeded to call the roll. terrorism insurance. I don’t think at chance to speak a few words. What Mr. NELSON of Florida. Mr. Presi- this late date, having put together two words were spoken. Clearly, the mes- dent, I ask unanimous consent that the different compromises, that we could sage did not stay in this little cubicle, order for the quorum call be rescinded. start from scratch on a program which Senator WELLSTONE. The message went The PRESIDING OFFICER (Mr. nobody fully understands. We are going out from that room. The message went REID). Without objection, it is so or- to have a chance this afternoon to do out that it is the time, it is the place, dered. it. We have a compromise that has and it is ready. Mr. NELSON of Florida. Mr. Presi- been worked out by Senator DODD, Sen- As a matter of fact, I believe the dent, I ask if the Senator from Penn- ator DASCHLE, Senator SARBANES, and members there present would have, by sylvania would give me 2 minutes of members of the Banking and Com- overwhelming numbers, voted to take his time. merce Committees. I think we need to this bill and put it on this appropria- Mr. SPECTER. Mr. President, I am take it. delighted to yield 2 minutes to the Sen- tions bill and send it to the President THE STIMULUS PACKAGE for his signature. We made some good ator from Florida. The PRESIDING OFFICER. The Sen- Mr. GRAMM. Mr. President, I hope things happen. The President of the we get an opportunity to vote on the United States has issued a letter say- ator from Florida is recognized for 2 minutes. stimulus package. I liken our situation ing next year will be the time. We will to a situation we would face if in the hold him to it. He is saying he would Mr. NELSON of Florida. I thank the Senator. cold of winter a storm came along and like to do that. We know he had a dis- blew the roof off of an apartment tinguished friend who had depression TERRORISM INSURANCE house. It is clear unless something is and committed suicide, and he doesn’t Mr. NELSON of Florida. Mr. Presi- not done that people would get pneu- have any trouble with the idea of this dent, we are coming down to the monia, frostbite, and suffer from expo- being a disease, severe depression. It crunch time with the conclusion of this sure. must be treated. Severe depression session. One of the issues to be decided We have one group of Congressmen must have coverage just as the other this afternoon is whether or not we are and Senators rushing in to say that we dread diseases. going to have any protection on ter- I have here lately been comparing rorism insurance—not only for large have to hire doctors. We have to buy these dread diseases of the mind with and small businesses but also for penicillin. We need blankets. the diseases of the heart. Clearly, we homes and cars, and for personal lives. We have another group that says: covered heart even though it is part Since there are so many agendas Why don’t we rebuild the roof? Then it spiritual, part physical. We do not say going on with this topic, I urge, since is suggested that rich people live on ‘‘we don’t cover that because it is very this is the very last gasp, the Senate to the upper floors and they would benefit difficult to diagnose and do research come to an agreement for a fallback more by putting the roof back on. on.’’ Thank God we got it together and and a short period of time—say 6 Then the President proposes the clas- worked on it. months—and adopt legislation that sic political compromise, which is: So I understand my time is about to would have the Federal Government Why don’t you rebuild some of the roof run out. I thank the Chair. assume the terrorism risk for that and buy some of the penicillin? I just want to say I am happy again. short period of time with a freeze on I hope we can go that route. At least The tenor and the tone—those who rates so the consumer is not paying the we would benefit people. I hope we get were saying we are going do it were high rates now being jacked up; and a a chance to vote on that package really a different group of people. They moratorium on the cancellations so the today. are going to have hearings. Where they consumers, businesses, and individual I yield the floor. I thank the Senator have not had a single hearing in the home and car owners would have pro- for this and for many other things. Mr. SPECTER. Mr. President, I sug- House of Representatives on the issue tection against a terrorist risk of loss. of parity of coverage for American peo- We can do that. That is a fallback po- gest the absence of a quorum. ple, we have had numerous hearings sition. The alternative is to do noth- The PRESIDING OFFICER (Mr. NEL- here. They have had none. They pledge ing. That is unconscionable. SON of Florida). The clerk will call the it. Once they have it, once their Mem- Rates are being jacked as we speak, roll. bers hear, once their Members are im- and cancellations of terrorist coverage The senior assistant bill clerk pro- portuned by these citizens to do this, it is now occurring in the 50 States. ceeded to call the roll. will move. I thank the President for letting me Mr. SPECTER. Mr. President, I ask So I say thanks to Senator bring this to the attention of the Sen- unanimous consent the order for the WELLSTONE for all the support and ate. I thank the Senator from Pennsyl- quorum call be rescinded. help, and to all those in the Senate— vania for yielding the time. The PRESIDING OFFICER. Without there are many, over 65 on the bill. The Mr. SPECTER. Mr. President, how objection, it is so ordered. pressure from that, the ambience from much time do I have remaining? Mr. SPECTER. Mr. President, we are that, was strong. We will, indeed, next The PRESIDING OFFICER. The Sen- about at the end of the time in this ses- year, be moving ahead with a big ator from Pennsylvania has 13 minutes sion. I just want to make a comment or strong wave, and it will happen. remaining. two about the subject matter of the I yield the floor. Mr. SPECTER. Mr. President, I sug- Domenici-Wellstone amendment to try The PRESIDING OFFICER. Who gest the absence of a quorum. to bring parity to mental health. I re- yields time? The PRESIDING OFFICER. The gret very much that the Appropria- Mr. HARKIN. Parliamentary inquiry, clerk will call the roll. tions Committee did not act on it. Mr. President: How much time remains The senior assistant bill clerk pro- That amendment passed the Senate on the conference report? ceeded to call the roll. floor. And it had support from some in The PRESIDING OFFICER. The time Mr. GRAMM. Mr. President, I ask the House, really divided along party remaining is 20 minutes to the Senator unanimous consent that the order for lines. There are some assurances from from Pennsylvania. the quorum call be rescinded. the President and at least one of the

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00019 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S13792 CONGRESSIONAL RECORD — SENATE December 20, 2001 authorizing committees in the House was indicted, the FBI refused to pro- investigation. It was my recommendation that there will be action to bring par- vide additional information, claiming that this referral take place as soon as pos- ity. it would hamper the prosecution. Even sible. Mental illness is as much an illness after Dr. Wen Ho Lee entered a guilty I also told the Attorney General that since she had declined to refer the matter to an as is physical illness, and that ought to plea and the prosecution was con- Independent Counsel it was my recommenda- be corrected. In the conference, I made cluded, the FBI continued to refuse to tion that she select a first rate DOJ legal the point that it was my hope that if provide information on the ground that team from outside Main Justice to conduct action was not taken by the author- it would impede their debriefing of Dr. that inquiry. In fact, I said that these pros- izers that the appropriators would pro- Lee in obtaining the tapes which he ecutors should be ‘‘junk-yard dogs’’ and that ceed, again, next year at this time and took. in my view, PIS was not capable of con- act in our conference. Congressional oversight is tradition- ducting the thorough, aggressive kind of in- Mr. President, how much time re- ally a difficult matter because the vestigation which was required. I also advised the Attorney General of Lee mains? House and the Senate are so busy with legislative matters and it is like pull- Radek’s comment to you that there was a lot The PRESIDING OFFICER. There of ‘‘pressure’’ on him and PIS regarding this are 8 minutes remaining for the Sen- ing teeth, at best, to get cooperation case because the ‘‘Attorney General’s job ator from Pennsylvania. from the Executive branch. The Sub- might hang in the balance’’ (or words to that Mr. SPECTER. Mr. President, I ask committee’s oversight efforts on Dr. effect). I stated that those comments would unanimous consent that I may proceed Wen Ho Lee have been even tougher. In be enough for me to take him and the Crimi- for the remainder of that time—the 8 addition to the general difficulties, the nal Division off the case completely. minutes—as in morning business. Subcommittee’s oversight efforts have I also stated that it didn’t make sense for The PRESIDING OFFICER. Without been further complicated by the change PIS to call the FBI the ‘‘lead agency’’ in this matter while operating a ‘‘task force’’ with objection, it is so ordered. in party control in May 2001, the ter- rorist attack on September 11 of this DOC IGs who were conducting interviews of REPORTS ON THE CASES OF DR. WEN HO LEE AND key witnesses without the knowledge or par- DR. PETER LEE year, and the departure of the Sub- ticipation of the FBI. Mr. SPECTER. Mr. President, before committee’s key investigator Mr. I strongly recommended that the FBI and the first session of the 107th Congress Dobie McArthur. Mr. McArthur did an hand-picked DOJ attorneys from outside ends, I want to put on the RECORD re- extraordinary job, virtually single- Main Justice run this case as we would any handedly conducting the oversight in- matter of such importance and complexity. ports on the cases of Dr. Wen Ho Lee We left the conversation on Friday with and Dr. Peter Lee, which were subject vestigations and writing the reports. With the new FBI Director Robert S. arrangements to discuss the matter again on to oversight by the Judiciary Com- Mueller, III focusing on reorganization Monday. The Attorney General and I spoke mittee on the Department of Justice of the Bureau and the additional re- today and she asked for a meeting to discuss during the 106th Congress. The Sub- the ‘‘investigative team’’ and hear our rec- sponsibilities of the FBI occasioned by committee’s work was controversial, ommendations. The meeting is now sched- the September 11 terrorist attack, and partly because it included oversight of uled for Wednesday, 12/11/96, which you and the shift of the Department of Justice Attorney General Reno’s handling of Bob Litt will also attend. in the focus of FBI activities, it is very I intend to repeat my recommendations the investigations into campaign fi- difficult to pursue further the Sub- from Friday’s meeting. We should present all nance matters on President Clinton committee’s inquiry on Dr. Wen Ho of our recommendations for setting up the and Vice President Gore. Lee, but it is my hope that at some investigation—both AUSAs and other re- Without going into all the details, date that might be done. Because of sources. You and I should also discuss and consider whether on the basis of all the facts suffice it to say that bipartisan agree- the serious dereliction of the FBI’s ment could not be reached within the and circumstances—including Huang’s re- handling of the Dr. Wen Ho Lee inves- cently released letters to the President as Subcommittee on a report or in the full tigation, it will never be known beyond Committee on issuance of subpoenas to well as Radek’s comments—whether I should a reasonable doubt whether Dr. Wen Ho recommend that the Attorney General re- obtain necessary testimony. Lee was a spy, although there is sub- consider referral to an Independent Counsel. When a subpoena was sought for FBI stantial evidence to that effect in the It was unfortunate that DOJ declined to Director Louis Freeh, the opposition of McArthur reports. The publication of allow the FBI to play any role in the Inde- Senator HATCH, the Chairman of the the reports on Dr. Wen Ho Lee and Dr. pendent Counsel referral deliberations. I agree with you that based on the DOJ’s expe- Committee, proved decisive. In April Peter Lee will enable readers to evalu- 2000, the Subcommittee obtained a rience with the Cisneros matter—which was ate the seriousness of espionage in only referred to an Independent Counsel be- memorandum from Director Freeh damaging our national security inter- dated December 1996 which recited a cause the FBI and I intervened directly with ests, the failure of the Executive the Attorny General—it was decided to ex- conversation between a ranking FBI of- branch in dealing with those investiga- clude us from this decision-making process. ficial and a ranking Department of tions, the need for changes in proce- Nevertheless, based on information re- Justice official to the effect that the dures by the Department of Justice, in- cently reviewed from PIS/DOC, we should de- investigation of the Department of cluding the FBI, and the Department of termine whether or not an Independent Counsel referral should be made at this time. Justice would effect the Attorney Gen- Energy. Some legislation, as noted in eral’s tenure at a time before President If so, I will make the recommendation to the the McArthur reports, has already been Attorney General. Clinton had reappointed her. The Freeh enacted as a result of the Subcommit- Mr. SPECTER. Mr. President, I am memo further referenced a conversa- tee’s oversight and further legislative now going to commence with the read- tion between Attorney General Reno reforms are needed. Publication of ing of the report on Dr. Wen Ho Lee: and Director Freeh. The Subcommit- these reports will promote those objec- My understanding, after consulting tee’s inability to subpoena and ques- tives. tion Freeh was a significant hindrance Mr. President, I ask unanimous con- with the authorities, is that once I to pursuing that important matter. sent that the text of the two-page begin the reading of the report, the re- That memorandum and other files Freeh memorandum of December 1996 mainder may be incorporated in the ECORD have been inaccessible since October be printed in the RECORD. R as if read in full. with the closing of the Hart Building There being no objection, the mate- The PRESIDING OFFICER. And the 1 due to the anthrax mail. The terrorist rial was ordered to be printed in the Senator is advised he has 2 ⁄2 minutes attack of September 11 has further hin- RECORD, as follows: left. Mr. SPECTER. I thank the Chair. I dered the finishing of the Subcommit- DECEMBER 9, 1996. shall not use the full 21⁄2 minutes. tee’s work because the FBI has, under- To: MR. ESPOSITO, standably, been occupied with inves- From: DIRECTOR, This report augments and completes the tigating terrorists, which preempted Subject: DEMOCRATIC NATIONAL CAMPAIGN interim report released on March 8, 2000, re- MATTER garding the Government’s investigation of other pending matters. espionage allegations against Dr. Wen Ho The Subcommittee’s oversight was As I related to you this morning, I met with the Attorney General on Friday, 12/6/96, Lee who pleaded guilty on September 13, 2000 thwarted repeatedly by delays by the to discuss the above-captioned matter. to one felony count of unlawful retention of FBI and the intransigence of the De- I stated that DOJ had not yet referred the national defense information.1 The special partment of Energy. Once Wen Ho Lee matter to the FBI to conduct a full, criminal Judiciary subcommittee on Department of

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00020 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S13793 Justice Oversight, which I chaired in the last most likely occurred from Los Alamos—is of motivated more by a desire to protect the af- Congress, began oversight on the Wen Ho Lee secondary importance. The mere fact that fected agency’s image than the national se- case and several other matters in September the PRC had obtained classified nuclear curity. This is particularly true of the De- 1999, but suspended its review of this case at weapons information should have been suffi- partment of Energy’s decision to administer the request of FBI Director Louis Freeh cient to trigger a thorough investigation, a polygraph to Dr. Lee in December 1998 after Dr. Lee was indicted and jailed on De- but the FBI’s investigation was anything but when it seemed likely that the House’s Cox cember 10, 1999. thorough. Committee report 3 was going to expose the I issued the interim report in March 2000 to The Department of Justice was wrong to many missteps that had occurred up to that demonstrate the need for reforms contained reject the 1997 request by the FBI for elec- point. in the Counterintelligence Reform Act of tronic surveillance under the Foreign Intel- The full report which follows addresses 2000, which became law as Title VI of Public ligence Surveillance Act. Had the request each of these matters in detail, as well as Law 106–567 on December 27, 2000. That bipar- been permitted to go forward to the court, several other important aspects of the case. tisan bill, which passed the Senate Judiciary Dr. Lee’s illegal downloading could have REPORT ON THE GOVERNMENT’S HANDLING OF and Select Intelligence committees without been detected and halted in 1997. The Depart- THE INVESTIGATION AND PROSECUTION OF a single vote in opposition despite some- ment of Justice’s own internal review, con- DR. WEN HO LEE times strong disagreements about certain as- ducted by Assistant U.S. Attorney Randy The government’s conduct in this case is pects of the Wen Ho Lee case, corrected Bellows, concluded that the request should so filled with major breakdowns by every many of the flaws in the government’s proce- have been approved. agency involved that it almost defies anal- The Department of Energy was wrong to dures for handling espionage investigations ysis and makes determining responsibility allow Wackenhut contract polygraph exam- and prosecutions. This report, consisting of for the failures a very complicated matter. iners to administer a polygraph to Dr. Lee an executive summary accompanied by a de- on December 23, 1998. The Wackenhut con- This report attempts to sort out what went tailed review of the case, completes the over- tractors incorrectly reported that Dr. Lee wrong and why, and to determine how such sight record on the Wen Ho Lee matter. passed the polygraph, prompting the FBI to mistakes can be avoided in future cases. It HIGHLIGHTS OF THE REPORT nearly shut down its investigation at a time includes some new information which has The government’s investigation of Los Ala- when scrutiny of Dr. Lee should have been not been publicly disclosed before, and pro- mos National Laboratory (LANL) nuclear intensified. Dr. Lee has told investigators vides a thorough review of the facts that are weapons scientist Dr. Wen Ho Lee was so the computer tapes that are now missing known. For ease of reading, it is organized in inept that despite scrutiny spanning nearly were in his office on December 23. Had the roughly chronological order, with the excep- two decades, both the FBI and the Depart- FBI conducted its investigation consistent tion being a section in the beginning which ment of Energy missed repeated opportuni- with the fact that Dr. Lee did not pass the describes the key elements of the govern- ties to discover and stop his illegal computer polygraph, the tapes could have been recov- ment’s case against Dr. Lee. activities. As a consequence of these numer- ered. The case against Dr. Wen Ho Lee ous failures, magnetic computer tapes con- The nuclear secrets that Dr. Lee mis- Most Americans had never heard of Dr. taining some of the nation’s most sensitive handled were correctly described by the gov- Wen Ho Lee before he was fired from Los Al- nuclear secrets are now missing when they ernment as extremely sensitive. Dr. Lee’s ac- amos National Laboratory in New Mexico on could have been recovered as late as Decem- tions in downloading these files onto an un- March 8, 1999. The first vague hints of the ber 1998 and possibly even later. classified computer system accessible from story that would explode on the national One great tragedy of the Wen Ho Lee case the Internet, and later onto portable mag- scene in March 1999 had come in a January 7, is that the entire truth will likely never be netic tapes, constituted a serious threat to 1999, Wall Street Journal article by Carla known. As a consequence of an inept inves- the national security. Anne Robbins, which alleged that ‘‘China re- tigation, the government has lost the credi- Allegations that Dr. Lee was targeted for ceived secret design information for the bility to claim that its version of events is investigation and prosecution as a result of most modern U.S. nuclear warhead’’ and the absolute truth. Dr. Lee also lacks the ‘‘ethnic profiling’’ are unfounded. The re- quoted unnamed U.S. officials as saying that credibility to tell the definitive tale of this peated investigations of Dr. Lee resulted the ‘‘top suspect is an American working at case: he repeatedly lied to investigators, cre- from reasonable suspicions raised by Dr. a U.S. Department of Energy laboratory.’’ 4 ated his own personal nuclear weapons de- Lee’s own conduct. Moreover, there is abso- The WSJ article went on say that the loss of sign library without proper authority, copied lutely no evidence that Dr. Lee’s ethnicity information related to the W–88 warhead was nuclear secrets to an unclassified computer was a factor in the decision to prosecute Dr. the ‘‘most significant in a 20–year espionage system accessible from the Internet, and Lee or to hold him in unusually strict pre- effort by Beijing that targeted the U.S. nu- passed up several opportunities to turn his trial confinement. clear weapons laboratories,’’ and that The government’s harsh treatment of Dr. tape collection over to the government. If ‘‘China was given general, but still highly se- Lee after his arrest on December 10, 1999, in- the information Dr. Lee put at risk did not cret, information about the warhead’s cluding putting him in solitary confinement fall into the wrong hands, it is a matter of weight, size and explosive power, and its and requiring him to be manacled does, how- mere luck. When the nation’s most sensitive state-of-the-art internal configuration, ever, raise troubling questions. The govern- nuclear secrets are at issue, it is unaccept- ment’s claim that Dr. Lee was such a threat which allowed designers to minimize size and 5 able that we should have to rely on luck to he had to be held in pretrial confinement weight without losing power.’’ The article keep them safe. under very strict conditions is inconsistent further noted that the investigation of the Among the many concerns arising from the with the long delay from March to December suspected loss of W–88 information was the investigation and prosecution of Dr. Lee, the 1999—when the government first learned of ‘‘third major Chinese espionage effort uncov- following are most significant: the downloaded secrets until he was ar- ered at the U.S. labs over the last two dec- The government obtained highly credible rested—and the acceptance of a plea agree- ades,’’ and was a key part of the work of the information in 1994 that Dr. Lee had helped ment in September 2000 by which Dr. Lee special House committee, known as the Cox the Chinese with computer codes and soft- was released with no monitoring whatsoever, Committee, that was reviewing American 6 ware, but took no steps to examine his com- and which is only marginally better than it high-tech transfers to China. puter. Had Dr. Lee’s computer been exam- could have had in December 1999, at least in The story of suspected espionage at LANL ined, his illegal downloads of some of the na- terms of finding out what happened to the remained dormant after the Robbins article tion’s most sensitive nuclear weapons data tapes. Taken together with the many missed until the New York Times published a March to an unclassified computer system acces- opportunities to detect Dr. Lee’s illegal com- 5, 1999 piece by James Risen and Jeff Gerth, sible from the Internet could have been de- puter activity and recover the tapes, the titled ‘‘Breach at Los Alamos: A Special Re- tected and stopped. government’s handling of the plea agreement port.’’ The article did not name Dr. Lee, but The manner in which the FBI relied almost raises questions as to whether the harsh tac- raised the profile of the case by quoting completely on the Department of Energy’s tics were intended to coerce a confession. unnamed administration officials as saying Administrative Inquiry (AI) throughout the The government’s claim that Dr. Lee pre- that ‘‘working with nuclear secrets stolen investigation which began in 1996, rather sented such a danger that he had to be pro- from an American Government laboratory, than developing an independent investiga- hibited from communicating is severely un- China has made a leap in the development of tive plan, caused an inappropriate focus on dercut by its failure to even seek any type of nuclear weapons: the miniaturization of its the alleged loss of W–88 warhead design in- electronic surveillance on him even after the bombs. . .’’ 7 The Risen and Gerth story put formation to the exclusion of all else. The existence of the tapes was known. If the gov- a political spin on the case, quoting ‘‘some FBI never questioned how the suspected loss ernment was truly concerned that Dr. Lee American officials’’ as asserting that ‘‘the of the W–88 information related to the codes could potentially alter the global strategic White House sought to minimize the espio- and software help that Dr. Lee was suspected balance through phrases as innocuous as nage issue for policy reasons.’’ The senior of having provided to the PRC. The ongoing ‘‘Uncle Wen says hello,’’ or might send a sig- National Security Council official who han- debate over whether the AI’s underlying as- nal to a foreign intelligence service to ex- dled the case, Gary Samore, denied the alle- sumptions—namely that rapid advances in tract him, it should have sought to monitor gations, telling the NYT reporters that ‘‘The the PRC weapons program in the early 1990s his communications, but it did not. idea that we tried to cover up or downplay resulted from their acquisition of U.S. weap- Some of the most controversial and mis- these allegations to limit the damage to ons design information, and that the loss guided steps in the case appear to have been U.S.-Chinese relations is absolutely wrong.’’ 8

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00021 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S13794 CONGRESSIONAL RECORD — SENATE December 20, 2001 Risen and Gerth then explained that their Also in late September 1999, the Senate Ju- locate those tapes,’’ and warned that ‘‘our own investigation had revealed that diciary subcommittee on Department of Jus- surveillance personnel do not carry firearms, ‘‘throughout the Government, the response tice Oversight was organized, with a man- and they will be placed in harm’s way if you to the nuclear theft was plagued by delays, date to examine: technology transfer to the require us to maintain this impossible task inaction and skepticism—even though senior PRC, including the Wen Ho Lee case, the of protecting Dr. Lee.’’ 24 intelligence officials regarded it as one of Peter Lee case, and the Loral/Hughes mat- The government made these representa- the most damaging spy cases in recent his- ter; the facts surrounding the FBI’s use of tions in a successful effort to deny Dr. Lee tory.’’ 9 In support of their charges, they pyrotechnic tear gas rounds during the 1993 bail and he remained in pretrial confinement cited disagreements between former DOE in- standoff at Waco, which had recently been for more than nine months. By September 13, telligence chief Notra Trulock, who was the confirmed in a special report of the Texas 2000, when Judge Parker approved the plea main proponent of the view that Chinese Rangers; and the Department of Justice’s agreement under which Dr. Lee would plead weapons advances were attributable to espio- handling of campaign finance investigations guilty to one of the original fifty-nine felony nage, and other senior administration offi- and prosecutions from the 1996 presidential counts and accept a sentence of ‘‘time- cials, including former Acting Energy Sec- campaign.17 served’’ at 278 days, the government’s case retary Elizabeth Moler, who was said to have The subcommittee began an expeditious against Dr. Lee appeared to lie in tatters, as ordered Trulock not to brief the Cox Com- review of the Wen Ho Lee case and the other did its credibility. mittee ‘‘for fear that the information would matters within its jurisdiction, and sent out Judge Parker’s statements at the plea be used to attack the President’s China pol- letters to witnesses on December 7, 1999, for hearing were a stunning rebuke of the gov- icy.’’ 10 a hearing on December 14, which would ex- ernment when he said: Ms. Moler denied the allegations that she amine two issues: 1) the details of a Decem- ‘‘. . . I believe you were terribly wronged had interfered with Mr. Trulock’s congres- ber 23, 1998 polygraph exam that had been ad- by being held in custody pretrial . . . under sional testimony, but the die had been cast ministered to Dr. Lee, and 2) the relationship demeaning, unnecessarily punitive condi- so that as the story unfolded over the fol- between the Lees and the government. tions. I am truly sorry that I was led by our lowing months there was always an under- On December 10, 1999, Dr. Lee was arrested Executive Branch of government to order lying hint that the Clinton Administration and charged in a 59–count indictment 18 of your detention last December. had ignored or downplayed an important es- mishandling classified nuclear weapons data, ‘‘Dr. Lee, I tell you with great sadness that pionage case to avoid criticism or complica- prompting FBI Director Freeh to write to I feel I was led astray last December by the tions with its China policy. me, asking that I postpone hearings on the Executive Branch of our government On March 8, 1999, Dr. Lee was publicly case. In view of the extraordinary cir- through its Department of Justice, by its named for the first time in an Associated cumstances of the case and Director Freeh’s Federal Bureau of Investigation and by its Press story by Josef Hebert. Quoting a state- unprecedented request, which he reiterated United States Attorney for the District of ment from the Department of Energy (which to me and Senator Torricelli in a meeting on New Mexico. . .’’25 did not name Dr. Lee), Hebert wrote that Dr. December 14, I agreed to postpone hearings After praising many of the lawyers on both Lee had been fired for ‘‘’failing to properly on the case, but to continue a review of gov- sides of the case, Judge Parker made clear safeguard classified material’ and having ernment documents unrelated to the crimi- where he felt the responsibility for the gov- contact with ‘people from a sensitive coun- nal case, as well as documents that came ernment’s mistakes should lay: try’’’.11 Shortly thereafter, the New York into the public domain as a result of the gov- ‘‘It is only the top decision makers in the Times ran another article by James Risen, ernment’s prosecution of Dr. Lee. Executive Branch, especially the Depart- who had interviewed Energy Secretary Bill The indictment of Dr. Lee referred to a se- ment of Justice and the Department of En- Richardson. According to Risen, Richardson ries of tapes Dr. Lee made from 1993 through ergy and locally, during December, who have told him that Dr. Lee had been fired on 1997, during which time he collected SECRET caused embarrassment by the way this case March 8 ‘‘for security breaches after the FBI and CONFIDENTIAL Restricted Data 19 into began and was handled. They did not embar- questioned him in connection with China’s a directory on the classified computer sys- rass me alone. They have embarrassed our suspected theft of American nuclear se- tem at LANL, then transferred the informa- entire nation and each of us who is a citizen crets. . .’’ 12 Secretary Richardson also ac- tion onto the unclassified portion of the of it.’’ 26 knowledged that Dr. Lee had been ques- LANL computer system and ultimately onto When Dr. Lee walked free, convicted of a tioned for three days, but had ‘‘stonewalled’’ a series of portable magnetic computer single felony count out of 59 and sentenced during the questioning.13 tapes, each capable of holding 150 megabytes to time served, the nation was stunned by Through the spring and summer, details of of information. All told, the information he the government’s rapid reversal. The govern- the case dribbled out as the press continued collected and transferred to portable mag- ment had argued even as late as September its investigation into the matter and several netic tapes was more than 800 megabytes, 1, 2000 that Dr. Lee was so serious a threat to congressional committees conducted over- the equivalent of over 400,000 pages of data.20 the national security that he had to be held sight on the case. Among the new details to At the bail hearing of Dr. Lee on Dec. 13, in solitary confinement under extraor- emerge were allegations totally unrelated to 1999, the key government witness, Dr. Ste- dinarily stringent conditions, yet less than the W–88 matter, including charges that Dr. phen Younger, Associate Laboratory Direc- two weeks later, he was allowed to walk out Lee had transferred massive amounts of clas- tor for Nuclear Weapons at Los Alamos, tes- of jail a free man. Even President Clinton, sified nuclear data to the unclassified por- tified as follows about the nuclear secrets who strangely acted as though it was some tion of the LANL computer system and later Dr. Lee was accused of mishandling: alien entity that had done such a sharp turn- onto portable magnetic tapes, which were ‘‘These codes, and their associated data about rather than an agency within his own thought to be missing. bases, and the input file, combined with administration, seemed stunned by the The Cox Committee released its unclassi- someone that knew how to use them, could, change of position. On the day after Dr. Lee fied report on May 25, 1999, which did not in my opinion, in the wrong hands, change was released, President Clinton told report- mention Dr. Lee by name but clearly re- the global strategic balance.’’ 21 ers at the White House: ferred to his case. The President’s Foreign It would be hard, realistically impossible, ‘‘The whole thing was quite troubling to Intelligence Advisory Board released its own to pose a more severe risk than to ‘‘change me, and I think it’s very difficult to rec- review of security at the national labs in the global strategic balance.’’ oncile the two positions that one day he’s a June, concluding that the labs did wonderful Dr. Younger further testified that: terrible risk to the national security and the 15 science but were lousy on security matters. ‘‘They enable the possessor to design the next day they’re making a plea agreement In August, Senators Thompson and Lieber- only objects that could result in the military for an offense far more modest than what man of the Governmental Affairs Committee defeat of America’s conventional forces had been alleged.’’ 27 released a special statement, saying: .... They represent the gravest possible se- It may remain impossible to reconcile the ‘‘This is a story of investigatory missteps, curity risk to . . . the supreme national in- two positions, but it is necessary to try, if 22 institutional and personal terest.’’ for no other reason than to help Americans A ‘‘military defeat of America’s conven- miscommunications, and—we believe—legal understand why the government acted as it tional forces’’ and ‘‘the gravest possible se- and policy misunderstandings and mistakes did in the Wen Ho Lee case. Although it may curity risk to . . . the supreme national in- at all levels of government. The DOE, FBI, not be sufficient to restore the public’s con- terest’’ constitute threats of obvious enor- and DOJ must all share the blame for our fidence in the agencies involved in this case, mous importance. government’s poor performance in handling a thorough examination of the facts such as 16 At this same bail hearing, when the judge this matter.’’ that attempted here is a necessary step in By September 1999, the government had fi- seemed to be leaning toward a restrictive that direction. nally separated the W–88 matter from the form of house arrest, Mr. Kelly warned that issue of Dr. Lee’s illegal file downloads, and Dr. Lee could be ‘‘snatched and taken out of The Investigations of Dr. Wen Ho Lee had started a new investigation aimed at the country’’ by hostile intelligence serv- The purpose of counterintelligence is to finding out how the PRC had obtained the ices.23 The lead FBI Agent then on the case, identify suspicious conduct and then pursue W–88 information it was known to possess. It Robert Messemer, told the judge to expect ‘‘a an investigation to prevent or minimize ac- did so quietly, without publicly acknowl- marked increase in hostile intelligence serv- cess by foreign agents to our secrets. From a edging that Dr. Lee was apparently no longer ice activities both here in New Mexico and counterintelligence perspective, the govern- a suspect in the loss of the W–88 information. throughout the United States in an effort to ment’s handling of the Wen Ho Lee matter

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00022 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S13795 has been an unmitigated disaster. The inves- employee, did not know the employee, and cision to use him in the investigation of the tigation of Dr. Lee since 1982 has been char- had not initiated any telephone calls to him. LLNL scientist. Had the FBI been more cau- acterized by a series of errors and omissions These representations were patently false.32 tious in assessing Dr. Lee’s trustworthiness by the Department of Energy and the De- Dr. Lee offered during the course of this in the first place, it would likely not have partment of Justice, including the FBI, interview to assist the FBI with its inves- used him in the investigation of the other which have permitted Dr. Lee to threaten tigation of the other scientist. scientist, and would therefore have been in a U.S. supremacy by putting at risk informa- On December 20, 1983 Dr. Lee was again better position to facilitate his termination tion that could change the ‘‘global strategic interviewed by the FBI,33 this time in Cali- from LANL or, at the very least, the removal balance.’’ fornia. During this interview, Lee explained of his security clearance. Director Freeh re- While Dr. Lee, of course, must bear pri- that he had been in contact with Taiwanese cently confirmed that the FBI had made no mary responsibility for any damage that nuclear researchers since 1977 or 1978, had recommendation to the DOE regarding the might result to national security from his done consulting work for them, and had sent removal of Dr. Lee’s clearance following the mishandling of our nuclear secrets, those of- some information that was not classified but 1982–1984 investigation.40 ficials in the DOE, the FBI and, to a lesser that should have been cleared with DOE offi- The second element of Dr. Lee’s conduct in degree, the DOJ, who participated in the in- cials. He tried to explain that he had con- the 1982–1984 investigation that deserved vestigation of Dr. Lee must accept responsi- tacted the subject of the other investigation greater attention from the FBI than it got is bility for their own failure to detect and put because he thought this other scientist was the status of the individual to whom Dr. Lee a stop to Dr. Lee’s illegal computer activity. in trouble for doing the same thing that Lee was sending the information at the CCNA. It would be one thing if an individual who had been doing for Taiwan.34 After this inter- This individual was known to the FBI as an had never shown up on the counterintel- view, the FBI sent Dr. Lee to meet with the intelligence collector (although it remains ligence radar scope was later found out, but espionage suspect. unclear as to whether Dr. Lee had any reason Dr. Lee was under active investigation dur- On January 24, 1984, Dr. Lee took an FBI to be aware of that). The FBI did take the ing the very time he was engaged in illegal polygraph examination which included ques- necessary steps to learn how Dr. Lee came to computer downloads, yet his activities were tions about passing classified information to know this individual, but it did not give suf- not detected. any foreign government, Lee’s contacts with ficient weight to the individual’s status as In fact, Dr. Lee was investigated on mul- the Taiwanese Embassy, and his contacts an intelligence collector. tiple occasions over seventeen years, but with the LLNL scientist. Although the FBI The third and final area of concern about none of these investigations—or the security has subsequently contended that Dr. Lee’s the FBI’s handling of the 1982–1984 investiga- measures in place at Los Alamos—came answers on this polygraph were satisfactory, tion relates to the FBI’s reporting of Dr. close to discovering and preventing Dr. Lee there remained important reasons to con- Lee’s assistance in the investigation of the LLNL scientist, which has been inconsistent. from putting the national security at risk by tinue the investigation. His suspicious con- Some documents, apparently including infor- placing highly classified nuclear secrets on duct in contacting the Lawrence Livermore mation provided to Attorney General Reno an unsecure system where they could easily scientist and then lying about it, the nature in preparation for her June 8, 1999 appear- be accessed by even unsophisticated hack- of the documents that he was sending to the ance before the Judiciary Committee in ers.18 It is difficult to comprehend how offi- Taiwanese Embassy, and the status of the closed session, indicate that the FBI did not cials entrusted with the responsibility for person to whom he was sending those docu- use Dr. Lee in its investigation. The final protecting our national security could have ments were potential danger signals. Al- draft of the 1997 request for FISA coverage failed to discover what was really happening though not classified, the documents Dr. Lee on Dr. Lee, in recounting this episode, states with Dr. Lee, given all the indicators that was passing to Taiwan’s Coordination Coun- flatly that while Dr. Lee offered to help the were present. cil of North America were subject to Nuclear Regulatory Commission export controls. FBI in its investigation of the LLNL sci- The 1982–1984 Investigation They were specifically stamped ‘‘no foreign entist, the FBI did not use him.41 Contem- Dr. Wen Ho Lee was born in Nantou, Tai- dissemination.’’ According to testimony of poraneous FBI records of the 1982 investiga- wan, in 1939. After graduating from Texas FBI Special Agent Robert Messemer at a spe- tion, however, indicate that not only did Dr. A&M University with a Doctorate in 1969, he cial hearing on December 29, 1999, FBI files Lee assist the FBI with its investigation of became a U.S. citizen in 1974, and began also contain evidence of other ‘‘misrepresen- the other scientist, but that the result was working at Los Alamos National Laboratory tations’’ that Dr. Lee made to the FBI in far better than had been anticipated. in applied mathematics and fluid dynamics 1983–1984 which have raised ‘‘grave and seri- The failure to mention the assistance pro- in 1978.20 The X-Division, where Dr. Lee ous concerns’’ about Dr. Lee’s truthfulness.36 vided by Dr. Lee in 1983 when requesting worked from 1982 until 1998, has the highest Notwithstanding these reasons for con- FISA coverage in 1997 is troubling because it level of security of any division at LANL. It tinuing the investigation, the FBI closed its has the effect of presenting an incomplete is responsible for the design of thermo- initial investigation of Lee on March 12, picture of the initial investigation of Dr. nuclear weapons, and Dr. Lee was part of a 1984.37 Lee. Judgements regarding whether an indi- team working on five Lagrangian mathe- Although the FBI’s 1982–1984 investigation vidual is acting as an agent of a foreign matical codes, also known as ‘‘source codes’’, was generally well run, three areas of con- power should be made in consideration of the used in weapons development. Dr. Lee’s wife, cern are worth noting. First, the FBI should totality of the circumstances, and the FBI’s Sylvia, also worked at LANL from November have coordinated more closely with the De- decision to use Dr. Lee in the investigation 1980 until June 1995. The last position she partment of Energy. When initially con- of the LLNL scientist is an important ele- held was ‘‘Computer Technician,’’ and she tacted by the FBI in 1982, the DOE’s Office of ment of the total circumstances. If the FBI held a Top Secret clearance from 1991 Security recommended that Dr. Lee be re- trusted Dr. Lee enough to use him in the in- through 1995.30 moved from access due to the sensitivity of vestigation of the LLNL scientist, that fact The FBI first became concerned about Dr. the area in which he worked. Had the DOE should have been included in the FISA re- Lee as a result of contacts he made with a security official’s instincts been followed, quest. The failure to mention that fact gives suspected PRC intelligence agent in the Dr. Lee would not have been able to put at an incomplete impression, which is inappro- early 1980s. On December 3, 1982, Dr. Lee risk, years later, the massive volume of nu- priate in these matters. called a former employee of Lawrence Liver- clear data that he ultimately did. It is likely that the FBI’s incorrect charac- more National Laboratory (LLNL) who was The second area of concern is that the FBI terization of Dr. Lee’s 1982–1984 activities suspected of passing classified information closed the investigation despite several trou- was merely an inadvertent oversight and was to the Peoples Republic of China (PRC). This bling indicators. As noted previously, FBI not an attempt to conceal the assistance he call was intercepted pursuant to a FISA Special Agent Messemer mentioned several had provided. For example, the FBI did not court authorized wiretap in another FBI es- misrepresentations that Dr. Lee made to the make any effort to conceal or deny Mrs. pionage investigation. After introducing FBI which were relevant to his truthfulness. Lee’s assistance to the government. himself, Dr. Lee stated that he had heard Two of these misrepresentations stand out as While the FBI should have acknowledged about the Lawrence Livermore scientist’s particularly important. First, Dr. Lee Dr. Lee’s assistance in the FISA request, the ‘‘matter’’ and that Lee thought he could find learned about the LLNL scientist’s situation totality of Dr. Lee’s conduct in 1982–1984 was out who had ‘‘squealed’’ on the employee.31 from a mutual friend during an October 1982 suspicious and was directly relevant on a Based on the intercepted phone call, the FBI visit to LLNL.38 Second, and more impor- probable cause determination. opened an espionage investigation on Dr. tantly, upon learning of the LLNL scientist’s The 1982–1984 investigation of Dr. Lee rep- Lee. predicament, Dr. Lee immediately at- resents a missed opportunity to protect the For the next several months the FBI inves- tempted to call his point of contact at the nation’s secrets. Had the matter been han- tigated Dr. Lee, with much of the work being Coordination Council of North America (the dled properly, Dr. Lee’s clearance and access done under the guise of the periodic reinves- equivalent of the Taiwanese Embassy in would most likely have been removed long tigation required for individuals with secu- Washington, DC).39 That Dr. Lee would at- ago, before he was able to put the global rity clearances. On November 9, 1983, the FBI tempt to contact a foreign embassy seeking strategic balance at risk. interviewed Dr. Lee. Before being informed help for a fellow scientist should have raised The 1994–November 2, 1995, Investigation of Dr. that the FBI had intercepted his call to the serious questions about his trustworthiness. Lee Lawrence Livermore employee, Lee stated Unfortunately, the FBI did not discover This investigation of Dr. Lee was initiated that he had never attempted to contact the this until after they had already made a de- based upon the discovery that he was well

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00023 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S13796 CONGRESSIONAL RECORD — SENATE December 20, 2001 acquainted with a high-ranking Chinese nu- Lee matter, DOE officials provided informa- stunning. The codes the Chinese were known clear scientist who visited Los Alamos as tion to put the NADIR alerts in perspective. to be using were computer codes, yet FBI part of a delegation in 1994,42 and that he was According to DOE, an average of 180 users and DOE counterintelligence officials never alleged to have helped Chinese scientists per week exceeded the thresholds established managed to discover these massive file with codes and software. Dr. Lee had never by the system, and were flagged just like Dr. transfers. Where, if not on his computer, reported meeting this scientist, which he Lee.52 While 180 is a substantial number of were they looking? And, as for the lab com- was required to do by DOE regulations, so individuals, it would not be impossible to de- puter personnel who saw but ignored the his relationship with this person aroused the vise a system by which counterintelligence NADIR reports, what possible explanation FBI’s concern. Unclassified sources have re- personnel can review these records to deter- can there be for a failure to conduct even the ported that Dr. Lee was greeted by ‘‘a lead- mine whether or not any individuals who are most minimal investigation? ing scientist in China’s nuclear weapons pro- already under investigation have been iden- FBI and DOE failures in 1994–1995 rep- gram who then made it clear to others in the tified by the system. resented the loss of a golden opportunity to meeting that Lee had been helpful to China’s In response to another question about what detect and halt Dr. Lee’s illegal computer nuclear program.’’ 43 In concert with the happened to the NADIR records for 1994 activities. In the 1995–1996 period, another 1982–1984 investigation, Dr. Lee’s undisclosed (which, according to testimony from Ms. opportunity to find and fix the problem pre- relationship with this top Chinese nuclear Wampler are missing), DOE replied simply sented itself in the form of the DOE Admin- scientist should have alerted the FBI and the that: istrative Inquiry (AI). Unfortunately, the op- DOE of the imperative for intensified inves- ‘‘. . . in 1993 NADIR was a new and devel- portunity represented by the AI was never tigation and reconsideration of his access to oping technique and many other scientists in fully realized. classified information. Instead, this FBI in- addition to Dr. Lee were transferring data The Investigation Renewed, May 30, 1996 to Au- vestigation was deferred on November 2, 1995, due to a change in the computer environ- gust 12, 1997 because Dr. Lee was by then emerging as a ment at that time. During the 1993–1994 As noted previously, the investigation of central figure in the Department of Energy’s 53 timeframe, Dr. Lee was not a suspect.’’ Dr. Lee was dormant from November 2, 1995 Administrative Inquiry,44 which was devel- Apart from the fact that the DOE’s re- until May 30, 1996. The investigation had oped by a DOE counterintelligence expert in sponse is incorrect—Dr. Lee was a suspect been shut down to await the arrival of DOE’s concert with a seasoned FBI agent who had beginning in 1994—the records should have Administrative Inquiry, which was presented been assigned to DOE for the purposes of the been available for review when the FBI on May 28, 1996. With the DOE AI in hand, inquiry. (The DOE Administrative Inquiry began its investigation. The fact that the the FBI resumed its investigation of the was given the code name Kindred Spirit.45) DOE was able to confirm that Dr. Lee was Lees. To understand that investigation, how- The investigation of Dr. Lee was essentially flagged by NADIR in 1993 proves that point, ever, it is first necessary to review the AI. dormant from November 1995 until May 1996, but it does not explain the absence of the when the FBI received the results of the DOE 1994 NADIR records. Had the FBI bothered to The Kindred Spirit Administrative Inquiry Administrative Inquiry and opened a new in- check with the DOE computer personnel, and The public perception of the government’s vestigation of Dr. Lee on May 30, 1996. there should have been no doubt that Dr. Lee actions in the Wen Ho Lee case, particularly It is difficult to understand why the FBI had no expectation of privacy with regard to with regard to charges of so-called ‘‘ethnic would suspend the investigation in 1995, even a system designed to identify abnormal sys- profiling’’, has been shaped by a misunder- to wait for the Kindred Spirit Administra- tem operations, Dr. Lee’s illegal computer standing of the Department of Energy’s Ad- tive Inquiry, when the issues that gave rise downloads could have been detected and ministrative Inquiry (AI), code named ‘‘Kin- to 1994–1995 investigation remained valid and halted. dred Spirit’’. Although he was not its author, unrelated to the Kindred Spirit investiga- The DOE computer and counterintel- former DOE intelligence chief Notra Trulock tion. The key elements of the 1994–1995 inves- ligence personnel could also have been more has been closely associated with this docu- tigation are described in the 1997 Letterhead helpful in this situation.54 Had DOE trans- ment, in large measure because he was in- Memorandum (LHM) which was prepared to mitted this information to the FBI, and had strumental in commissioning the DOE’s Kin- support the request for a FISA search war- the FBI acted on it, Dr. Lee could have and dred Spirit Analytical Group (KSAG) which rant. Specifically, the LHM describes the un- should have been stopped in his tracks in spawned the AI, and he later forcefully advo- reported contact with the top nuclear sci- 1994 on these indicators of downloading. The cated the position that substantial espionage entist,46 and it makes reference to the ‘‘PRC full extent of the importance of the informa- had occurred and that something needed to using certain computational codes . . . tion that Dr. Lee was putting at risk be done about it. The KSAG was formed in which were later identified as something through his downloading was encapsulated in 1995 when scientists studying Chinese nu- that [Lee] had unique access to.’’ 47 And, fi- a document the Government filed in Decem- clear developments became concerned about nally, the LHM states that ‘‘the Director ber 1999 as part of the criminal action certain developments in the level of sophis- subsequently learned that Lee Wen Ho had against Dr. Lee: tication of the PRC’s weapons. During the worked on legacy codes.’’ Given these allega- ‘‘[I]n 1993 and 1994, Lee knowingly assem- summer of 1995, these concerns were fueled tions, it was a serious error to allow the in- bled 19 collections of files, called tape ar- when an individual provided to the U.S. gov- vestigation to wait for several months while chive (TAR) files, containing Secret and ernment a document, subsequently known as the DOE AI was being completed. This defer- Confidential Restricted Data relating to the ‘‘walk-in’’ document, which contained ral needlessly delayed the investigation and atomic weapon research, design, construc- highly classified details of some of our most left important issues unresolved. tion, and testing. Lee gathered and collected advanced nuclear warheads. In addition to information known to the information from the secure, classified Recent attempts to re-examine the FBI which required further intensified inves- LANL computer system, moved it to an un- premise of the Kindred Spirit AI and to ques- tigation and not a deferred investigation on secure, ‘‘open’’ computer, and then later tion its role in the FBI’s subsequent inves- November 2, 1995, the Department of Energy downloaded 17 of the 19 classified TAR files tigation of the same name have fostered the was incredibly lax in failing to understand to nine portable computer tapes.’’ 55 perception that the DOE’s AI was largely to and pursue obvious evidence that Dr. Lee These files, which amounted to more than blame for the FBI’s misdirected investiga- was downloading large quantities of classi- 806 megabytes, contained information that tion, which focused almost exclusively on fied information to an unclassified system. could do vast damage to the national secu- Dr. and Mrs. Lee, the loss of the W–88 infor- The sheer volume of Dr. Lee’s downloading rity. mation, and the Los Alamos lab, when a showed up on a DOE report in 1993.49 Cheryl The end result of these missteps and lack much broader investigation was required. Wampler, from the Los Alamos computer of- of communication was that, during some of The perception that DOE’s AI was the fice, has testified that the NADIR system, the very time that the FBI had an espionage weakest link in the FBI’s Kindred Spirit in- short for Network Anomaly Detection and investigation open on Dr. Lee resulting from vestigation is unfortunate because it ob- Intrusion Recording, flagged Dr. Lee’s mas- his unreported contacts with a top Chinese scures a far more complex set of cir- sive downloading in 1993.50 This system is scientist and the realization that the Chi- cumstances. This perception has also un- specifically designed to create profiles of sci- nese were using codes to which Dr. Lee had fairly undermined the government’s credi- entists’ daily computer usage so it can de- unique access, DOE computer personnel were bility on the ethnic/racial profiling question tect unusual behaviors. A DOE official with being warned by the NADIR system that Dr. and seriously damaged Notra Trulock’s rep- direct knowledge of this suspicious activity Lee was moving suspiciously large amounts utation and career. A more complete public failed to act on it, or to tell DOE counter- of information around, but were ignoring record on this matter may be helpful in re- intelligence personnel or the FBI. Based on those warnings and were not passing them on pairing some of the damage. its design, the NADIR system would have to the FBI. At the same time, FBI personnel In an October 29, 1999 letter, Energy Sec- continued to flag Dr. Lee’s computer activi- were taking no steps to investigate Dr. Lee’s retary Bill Richardson reacted to the FBI’s ties in 1994 as being unusual, but no one from computer activities, even when one of the attempts to lay the blame for its problems in DOE took any action to investigate what key allegations that prompted scrutiny of the Kindred Spirit investigation on the Ad- was going on.51 And it wasn’t mentioned to him in 1994 was that he had helped the Chi- ministrative Inquiry: the FBI or DOE’s counter-intelligence per- nese with codes and software. ‘‘...I think there has been a tendency to sonnel. The near perfect correlation between the overstate the adverse influence that DOE’s In response to written questions after a allegations which began the 1994–1995 inves- technical analysis and preliminary inves- September 27, 2000 hearing on the Wen Ho tigation and Dr. Lee’s computer activities is tigative support had on the conduct of the

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00024 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S13797 KINDRED SPIRIT investigation. There also quires an agency to notify the FBI when it The report concluded with the following has been, in my opinion, an over-emphasis on becomes aware that espionage may have oc- recommendation: the degree to which DOE input served to curred. Proof that the PRC had obtained ‘‘The writer believes the ECI [DOE Coun- limit the FBI’s investigative work.... classified U.S. nuclear weapons design infor- terintelligence] has basically, exhausted all [T]he fact is that all of the decisions to limit mation became available in the summer of logical ‘leads’ regarding this inquiry which the scope of the investigation were clearly, 1995 in the form of the ‘‘walk-in’’ document, ECI is legally permitted to accomplish. mutually agreed-upon by DOE and the FBI, which was really a large cache of documents Therefore, I strongly urge the FBI take the based on security and other concerns.’’ 57 delivered to the U.S. government by a Chi- lead in this investigation.’’ 61 In this regard, Secretary Richardson is nese national. The information in the ‘‘walk- Thus, while the AI strongly points toward correct. The FBI’s failures in the Wen Ho in’’ document was sufficient to trigger the the Lees there are also enough qualifiers to Lee investigation should not be blamed on requirements of section 811 and to prompt an make it clear that other suspects should also the AI. The DOE is, by law, limited in the investigation by the FBI. be investigated. scope of what it can do. The FBI could have The DOE could have satisfied its statutory Had the AI arrived on the doorstep of the and should have looked at the AI as a start- obligations under section 811 simply by noti- FBI’s Albuquerque office under different cir- ing point. Instead, the FBI case agents fying the FBI of its view that certain infor- cumstances, it might have been handled seemed to think that the DOE investigators mation in the ‘‘walk-in’’ document was not more appropriately. The AI came when the had done their job for them, and never seri- in the public domain, had not been author- FBI had already been investigating Dr. Lee, ously looked at the premise of the AI and its ized for transfer to the PRC, and was there- albeit not very competently, on the basis of relationship to Dr. Lee’s activities. fore likely in the possession of the PRC as a credible allegations from 1994 that he had The facts of the AI and the controversy result of espionage. In retrospect, it might helped the Chinese with codes and software. surrounding it can be stated in an unclassi- have been better if they had done so. The In this context, the AI served to reinforce fied fashion as follows: conclusions of the AI, while accompanied by the FBI’s existing perceptions of Dr. Lee as (A) The U.S. government concluded in 1995 many caveats that the DOE had been limited a likely espionage suspect. that the PRC had made remarkable progress in its ability to conduct the investigation Instead of using the AI as a starting point in its nuclear weapons program in the early and that further review was required, were for a comprehensive investigation, the FBI 1990s. adopted almost wholesale by the FBI and did little or no additional analysis and began (B) The government also learned in 1995 formed the basis of the FBI’s own Kindred focusing almost exclusively on the W–88 that the PRC had obtained certain classified Spirit espionage investigation. issue and the Lees. The reason for the FBI’s nuclear weapons design information on the The Bellows Report is highly critical of the action was made clear in an interview of the W–88 warhead and other weapons. DOE AI, concluding essentially that the DOE special agent who helped write the AI, who There is widespread agreement that both A overstated the degree of consensus that ex- said that he assumed that the investigation and B are true: the Chinese made rapid ad- isted on the question of espionage as a causal of Dr. Lee and the Kindred Spirit investiga- vancements in their nuclear weapons pro- factor in the PRC’s nuclear weapons ad- tion would eventually merge because it gram in the early 1990s, and they obtained vances, thereby establishing a faulty predi- looked like Dr. Lee was the most likely sus- classified nuclear weapons design informa- cate for the entire investigation. The fact pect.62 tion sometime before 1995. The controversy that the DOE was already concerned that the Even when given an opportunity to take a arises over whether there is any causal rela- PRC had detonated what appeared to be an fresh look at the case, the FBI did not do so. tionship between the two facts. One school of advanced nuclear weapon when the informa- When the CIA expressed concern in the sum- thought—embodied in the Kindred Spirit tion in the ‘‘walk-in’’ document became mer of 1996 that the individual who provided AI—holds that the Chinese advances oc- available may have led some members of the the ‘‘walk-in’’ document might be under the curred because they obtained classified U.S. DOE scientific review panel, called the Kin- control of a hostile intelligence service, the nuclear weapons design information, par- dred Spirit Analytical Group (KSAG), to give FBI actually shut down its investigation for ticularly that related to the W–88. The con- undue weight to the possibility of a causal nearly three weeks in July and August. An trary school of thought holds that while both link between the PRC’s weapons design ad- August 20, 1996 teletype from FBIHQ to the Albuquerque division says: A and B may be true, there is no evidence vances and the information in the ‘‘walk-in’’ ‘‘On August 19, 1996, DOEHQ provided that the Chinese nuclear advances resulted document. That is a question about which reasonable individuals may disagree—even FBIHQ with a letter stating it had conferred from their acquisition of U.S. nuclear weap- with CIAHQ and that DOE judged ‘that a se- ons design information. among the members of the KSAG there was 58 rious compromise of U.S. weapons-specific Investigations predicated upon these two not unanimity on this point —but there is restricted data occurred most likely in the schools of thought would take remarkably no doubt that the AI which flowed from the 1984–1988 timeframe.’ In effect, DOE stands divergent paths. If one took as a starting KSAG was built upon the belief that the by their original conclusion.’’ 63 point, as did the authors of the AI, the belief PRC’s design advances were the result of es- pionage. There can also be no doubt that the Thus, after the details were sorted out, it that the PRC’s nuclear weapons design ad- was clear that the investigation should go vances were in large part attributable to es- AI cast strong suspicion on the Lees. Any fair reading of the Administrative In- forward because the PRC had information pionage against the United States, one would they should not have, even if there were dis- be looking for the wholesale transfer of W–88 quiry makes clear that its authors (a DOE counterintelligence official and an FBI agent agreements over what, exactly, had been design information. The alternative view— seconded to the DOE to assist with the AI) compromised. A September 16, 1996 FBI 302 that the PRC’s nuclear weapons advances considered Wen Ho and Sylvia to be the from an interview of a scientist puts this in could have occurred independently of the ac- prime suspects in the alleged loss to the PRC perspective. It says, ‘‘There was no disagree- knowledged acquisition of classified U.S. of certain W–88 nuclear warhead design infor- ment that ‘Restricted Data’ information had weapons data in the ‘‘walk-in’’ document— mation, and that the loss had most likely oc- been acquired by the Chinese. The only dis- would lead to an investigation focused on the curred at Los Alamos. The AI reaches a pre- agreement was over how valuable the infor- specific bits of classified information the 64 liminary conclusion: mation was.’’ Chinese were known to have obtained, not ‘‘. . . it is the opinion of the writer that Thus, the recent attempts to dissect the only about the W–88 but about other weapons Wen Ho Lee is the only individual identified AI, outlined elsewhere in this report, miss systems as well. The former theory paints a during this inquiry who had, opportunity, the mark. The FBI had an opportunity when picture consistent with a single act of espio- motivation and legitimate access to both W– the CIA raised a red flag about the ‘‘walk-in’’ nage, conducted by a single individual trans- 88 weapons system information and the in- in 1996 to review the structure of their inves- ferring information from a specific place. formation reportedly received by [the tigation. They knew, based on the review The latter theory forces a broader review, PRC].’’ 59 they conducted at the time, that there had implicitly acknowledging that the informa- A fair reading of the document also shows been some disagreement within the KSAG, tion could involve multiple transfers from that the authors explicitly recognized the but that espionage had, in fact, occurred. multiple sources, quite possibly by numerous limitations of their investigation and rec- Unfortunately, when the FBI restarted its individuals. ommended that the Lees and Los Alamos be investigation in August 1996, the case agents While the debate over whether or not the a starting place for an investigation into the never questioned the underlying assumptions PRC’s nuclear weapons advances resulted loss of the W–88 information, an investiga- of the AI or the impact of these assumptions from espionage is important from both a tion that would necessarily extend well be- on the structure and course of the investiga- counterintelligence and an intelligence point yond the Lees and Los Alamos. For example, tion. of view, it should not have been the deter- the report says: By restarting the investigation where they minative factor in deciding how to conduct ‘‘This by no means excludes any other DOE left off, the FBI failed to take into consider- this espionage investigation. The threshold personnel as being possible suspects in this ation massive amounts of information in for required action by the FBI is met on the matter. However, based upon a review of all their own files indicating that the investiga- basis of fact B, irrespective of fact A and any information gathered by this inquiry, Wen tion should extend beyond the W–88 informa- relationship between the two elements. Sec- Ho Lee and his wife, Sylvia appear the most tion, beyond Los Alamos, and beyond the tion 811 of the Intelligence Authorization logical suspects. Wen Ho Lee had the direct Lees. More importantly, the FBI never seems Act of 1995, enacted to improve interagency access to the W–88 [information], motivation to have made any effort to understand what, coordination on espionage investigations in and opportunity to provide the PRC the W– if any, relationship existed between the Kin- the wake of the Aldrich Ames spy case, re- 88 weapons design [information].’’ 60 dred Spirit allegations and the investigation

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00025 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S13798 CONGRESSIONAL RECORD — SENATE December 20, 2001 of Dr. Lee that was already under way re- Dr. Lee’s computer. Although Mr. Craig ap- anyone else at the laboratory. On one occa- lated to computer codes and software. The parently did not know it until 1999, Dr. Lee sion, moreover, Wen-Ho Lee had himself ag- FBI’s failure to ask this basic question sent had signed a consent-to-monitor waiver 69 on gressively sought involvement with a vis- the investigation on a wild goose chase for April 19, 1995. The relevant portion of the iting Chinese scientific delegation, insisting more than three years while Dr. Lee’s illegal waiver states: upon acting as an interpreter for the group computer activities, which were highly rel- ‘‘Warning: To protect the LAN [local area despite his inability to perform this function evant to the 1994 allegations against him, network] systems from unauthorized use and very effectively. continued unchecked and unimpeded. to ensure that the systems are functioning ‘‘Sylvia Lee was involuntarily terminated The ‘‘walk-in’’ document properly, activities on these systems are at LANL during a reduction-in-force in 1995. monitored and recorded and subject to audit. Her personnel file indicated incidents of se- The ‘‘walk-in’’ document is central to the Use of these systems is expressed consent to curity violations and threats she allegedly Kindred Spirit investigation, so it should be such monitoring and recording. Any unau- made against coworkers. described in the greatest detail consistent thorized access or use of this LAN is prohib- ‘‘In 1986, Wen-Ho Lee and his wife traveled with classification concerns. This document, ited and could be subject to criminal and to China on LANL business to deliver a dated 1988, is said to lay out China’s nuclear civil penalties.’’ 70 paper on hydrodynamics 76 to a symposium in modernization plan for Beijing’s First Min- For reasons that have yet to be explained, Beijing. He visited the Chinese laboratory— istry of Machine Building, which is respon- this waiver was not in Dr. Lee’s security file the Institute for Applied Physics and Com- 65 sible for making missiles and nose cones. or his personnel file.71 putational Mathematics (IAPCM)—that de- The 74–page document contains dozens of The computer that Dr. Lee used apparently signs the PRC’s nuclear weapons. facts about U.S. warheads, mostly in a two- also had a banner, which had information ‘‘The Lees visited the PRC—and IAPCM— page chart. On one side of the chart are var- that may have constituted sufficient notice on LANL business again in 1988. ious US Air Force and US Navy warheads, in- to give the FBI access to its contents. And, ‘‘It was standard PRC intelligence cluding some older bombs as well as the W– finally, LANL computer use policy gave au- tradecraft, when targeting ethnic Chinese 80 warhead (cruise missiles), the W–87 (Min- thorities the ability to search computers to living overseas, to encourage travel to the uteman III); and the W–88 (Trident II).66 prevent waste, fraud and abuse.72 As noted in ‘‘homeland’’—particularly where visits to Among the most important items of infor- the press release accompanying the August ancestral villages and/or old family members mation in the ‘‘walk-in’’ document are de- 12, 1999, Department of Energy Inspector could be arranged—as a way of trying to di- tails about the W–88 warhead. General’s Report, Mr. Craig’s ‘‘failure to con- lute loyalty to other countries and encour- The Cox Committee Report provides the duct a diligent search deprived the FBI of aging solidarity with the authorities in Bei- following description and assessment of the relevant and potentially vital informa- jing. ‘‘walk-in’’ document: tion.’’ 73 Had the FBI National Security Law ‘‘The Lees took vacation time to travel ‘‘In 1995, a ‘‘walk-in’’ approached the Cen- Unit (NSLU) been given the opportunity to elsewhere in China during their two trips to tral Intelligence Agency outside of the PRC review these facts, it may well have con- China in 1986 and 1988. and provided an official PRC document clas- cluded that no FISA warrant was necessary ‘‘The FBI also learned of the Lees’ pur- sified ‘‘Secret’’ that contained design infor- to conduct a preliminary investigation of Dr. chase of unknown goods or services from a mation on the W–88 Trident D–5 warhead, the Lee’s computer. More importantly, records travel agent in Hong Kong while on a trip to most modern in the U.S. arsenal, as well as from the DOE monitoring systems like that colony and to Taiwan in 1992. On the technical information concerning other ther- NADIR could almost certainly have been re- basis of the record, the FBI determined that monuclear warheads. viewed without a FISA warrant. Had these there was reason to believe that this pay- ‘‘The CIA later determined that the ‘‘walk- records been searched, Dr. Lee’s unauthor- ment might have been for tickets for an un- in’’ was directed by the PRC intelligence ized downloading would have been found reported side trip across the border into the services. Nonetheless, the CIA and other In- nearly three years earlier. Unfortunately, PRC to Beijing. telligence Community analysts that re- through the failures of both DOE and FBI ‘‘Though Wen-Ho Lee had visited IAPCM in viewed the document concluded that it con- personnel, this critical information never both 1986 and 1988 and had filed ‘‘contact re- tained U.S. thermonuclear warhead design reached FBI Headquarters, and the NSLU de- ports’’ claiming to recount all of the Chinese information. cided that Dr. Lee’s computer could not be scientists he met there, he had failed to dis- ‘‘The ‘‘walk-in’’ document recognized that searched without a FISA warrant.74 Thus, a close his relationship with the PRC scientist the U.S. nuclear warheads represented the critical opportunity was lost to find and re- who visited LANL in 1994. state-of-the-art against which PRC thermo- move from an unsecure system, information ‘‘Wen-Ho Lee worked on specialized com- nuclear warheads should be measured. that could alter the global strategic balance. puter codes at Los Alamos—so-called ‘‘leg- ‘‘Over the following months, an assessment Nonetheless, the FBI developed an ade- acy codes’’ related to nuclear testing data— of the information in the document was con- quate factual basis for the issuance of a that were a particular target for Chinese in- ducted by a multidisciplinary group from the FISA warrant. The information developed by telligence. U.S. government, including the Department the FBI to support its FISA application in ‘‘The FBI learned that during a visit to Los of Energy and scientists from the U.S. na- 1997 was cogently summarized in the August Alamos by scientists from IAPCM, Lee had tional weapons laboratories.’’67 5, 1999 special statement of Senators Thomp- discussed certain unclassified hydrodynamic The Cox Committee’s view that the Chi- son and Lieberman of the Senate Committee computer codes with the Chinese delegation. nese had obtained sensitive design informa- on Governmental Affairs 75: It was reported that Lee had helped the Chi- tion about U.S. thermonuclear warheads is ‘‘DOE counterintelligence and weapons ex- nese scientists with their codes by providing bolstered by the June 1999 report of the perts had concluded that there was a great software and calculations relating to President’s Foreign Intelligence Advisory probability that the W–88 information had hydrodynamics. Board, which states that the ‘‘walk-in’’ docu- been compromised between 1984 and 1988 at ‘‘In 1997, Lee had requested permission to ment: the nuclear weapons division of the Los Ala- hire a graduate student, a Chinese national, ‘‘unquestionably contains some informa- mos laboratory. It was standard PRC intel- to help him with work on ‘‘Lagrangian tion that is still highly sensitive, including ligence tradecraft to focus particularly upon codes’’ at LANL. When the FBI evaluated descriptions, in varying degrees of speci- targeting and recruitment of ethnic Chinese this request, investigators were told by lab- ficity, of the technical characteristics of living in foreign countries (e.g., Chinese- oratory officials that there was no such seven U.S. thermonuclear warheads.’’ 68 Americans). thing as an unclassified Lagrangian code, The preceding analysis shows that while ‘‘It is common in PRC intelligence which describes certain hydrodynamic proc- there can be a legitimate debate as to wheth- tradecraft to use academic delegations— esses and are used to model some aspects of er the conclusions of the AI were stated with rather than traditional intelligence offi- nuclear weapons testing. ‘‘In 1984, the FBI inordinate confidence, which may have con- cers—to collect information on science-re- questioned Wen-Ho Lee about his 1982 con- tributed to the FBI’s decision to focus on the lated topics. It was, in fact, standard PRC in- tact with a U.S. scientist at another DOE nu- Lees and the loss of the W–88 information, telligence tradecraft to use scientific delega- clear weapons laboratory who was under in- there can be no doubt that: (1) the PRC ob- tions to identify and target scientists work- vestigation. ‘‘When questioned about this tained classified nuclear secrets through es- ing at restricted United States facilities contact, Lee gave deceptive answers. After pionage, and (2) the FBI had ample reason to such as LANL, since they ‘‘have better ac- offering further explanations, Lee took a investigate Dr. Lee. The problem is that the cess than PRC intelligence personnel to sci- polygraph, claiming that he had been con- FBI focused too narrowly on the Lees as sus- entists and other counterparts at the United cerned only with this other scientist’s al- pects in the W–88 investigation without States National Laboratories.’’ leged passing of unclassified information to ascertaining whether their suspicions about ‘‘Sylvia Lee, wife of Wen Ho Lee, had ex- a foreign government against DOE and Nu- Dr. Lee were logically related to the alleged tremely close contacts with visiting Chinese clear Regulatory Commission regulations— loss of the W–88 information. scientific delegations. Sylvia Lee, in fact, something that Lee himself admitted doing. From 1996 until 1997 the DOE and FBI in- had volunteered to act as hostess for visiting (As previously noted, the FBI closed this in- vestigation was characterized by additional Chinese scientific delegations at LANL when vestigation of Lee in 1984.) ‘‘The FBI, as inexplicable lapses. For example, in Novem- such visits first began in 1980, and had appar- noted above, had begun another investiga- ber 1996, the FBI asked DOE counterintel- ently had more extensive contacts and closer tion into Lee in the early 1990s, before the ligence team leader Terry Craig for access to relationships with these delegations than W–88 design information compromise came

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00026 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S13799 to light. This investigation was based upon Francisco, 387 U.S. 523, 534–539, (1967), the Su- gated the matter to Mr. Daniel Seikaly, an FBI investigative lead that Lee had pro- preme Court said: former Director, DOJ Executive Office for vided significant assistance to the PRC. ‘‘In cases in which the Fourth Amendment National Security, and she had nothing more ‘‘The FBI obtained a copy of a note on requires that a warrant to search be ob- to do with the matter. Mr. Seikaly com- IAPCM letterhead dated 1987 listing three tained, ‘‘probable cause’’ is the standard by pleted his review by late August or early LANL reports by their laboratory publica- which a particular decision to search is test- September and communicated his results to tion number. On this note, in English, was a ed against the constitutional mandate of the FBI through Mr. Kornblum. As Mr. handwritten comment to ‘Linda’ saying reasonableness. To apply this standard, it is Seikaly has testified, this was the first time ‘[t]he Deputy Director of this Institute asked obviously necessary first to focus upon the he had ever worked on a FISA request and he [for] these paper[s]. His name is Dr. Zheng governmental interest which allegedly justifies was not ‘‘a FISA expert.’’ It was not sur- Shaotang. Please check if they are unclassi- official intrusion upon the constitutionally prising then that Seikaly applied the wrong fied and send to them. Thanks a lot. Sylvia protected interests of the private citizen. standard for a FISA application: Lee.’ ’’ . . . [emphasis added] ‘‘We can’t do it (a FISA wiretap) unless The FBI request was worked into a draft ‘‘Unfortunately, there can be no ready test there was probable cause to believe that that FISA application by Mr. David Ryan, a line for determining reasonableness other than facility, their home, is being used or about attorney from the Department of Justice’s by balancing the need to search against the to be used by them as agents of a foreign 83 Office of Intelligence Policy and Review invasion which the search entails. . . . power.’’ Mr. Seikaly applied the standard from the (OIPR) with considerable experience in FISA ‘‘The warrant procedure is designed to typical criminal warrant as opposed to a matters. It was then reviewed by Mr. Allan guarantee that a decision to search private FISA warrant. 18 U.S.C. 2518, governing Kornblum, as Deputy Counsel for Intel- property is justified by a reasonable govern- mental interest. But reasonableness is still criminal wiretaps, allows surveillance where ligence Operations, and finally, by Mr. Ger- there is: 77 the ultimate standard. If a valid public inter- ald Schroeder, Acting Counsel, OIPR. As is ‘‘Probable cause for belief that the facili- well known by now, the OIPR did not agree est justifies the intrusion contemplated, ties from which, or the place where, the wire, to forward the FISA application, and yet an- then there is probable cause to issue a suit- oral, or electronic communications are to be other opportunity to discover what Dr. Lee ably restricted search warrant.’’ intercepted, are being used, or are about to was up to was lost. Where the Court allowed inspections in be used in connection with the commission of The Department of Justice should have Camera without probable cause that a par- such offense.’’ [emphasis added] taken the FBI’s request for a FISA warrant ticular dwelling contained violations, it is This criminal standard specifically re- on Dr. Lee to the Court on August 12, 1997. obvious that even more latitude would be quires that the facility be used in the ‘‘com- Attorney General Reno testified about this constitutionally permissible where national mission of such offense.’’ FISA, however, case before the Senate Judiciary Committee security is in issue and millions of American contains no such requirement. 50 U.S.C. 1805 on June 8, 1999. A redacted version of her tes- lives may be at stake. Even under the erro- (Section 105 of FISA) states that a warrant timony was released on December 21, 1999. neous, unduly high standard applied by the shall be issued if there is probable cause to The transcript makes it clear that the De- Department of Justice, however, the FBI’s believe that: partment of Justice should have agreed to go statement of probable cause was sufficient to ‘‘Each of the facilities or places at which forward with the search warrant for surveil- activate the FISA warrant. the electronic surveillance is directed is lance of Dr. Wen Ho Lee under the Foreign FBI Director Freeh correctly concluded being used, or is about to be used, by a for- Intelligence Surveillance Act when the FBI that probable cause existed for the issuance eign power or an agent of a foreign power.’’ made the request in 1997. of the FISA warrant. At the June 8 hearing, There is no requirement in this FISA lan- The DOJ’s internal review of the FISA re- Attorney General Reno stated her belief that guage that the facility is being used in the quest, conducted by Assistant U.S. Attorney there had not been a sufficient showing of commission of an offense. This incorrect ap- Randy Bellows, confirms that the request probable cause but conceded that FBI Direc- plication of the law was a serious mistake. should have gone forward. Mr. Bellows said: tor Freeh, a former Federal judge, concluded As noted in the Bellows report, ‘‘This matter ‘‘The final draft FISA application [deleted] that probable cause existed as a matter of should not have been assigned to an attorney on its face, established probable cause to be- law.79 who did not already have a solid grounding lieve that Wen Ho Lee was an agent of a for- The Department of Justice applied a clear- in FISA law, FISA applications, and the eign power, that is to say, a United States ly erroneous standard to determine whether FISA Court.’’ 84 Person currently engaged in clandestine in- probable cause existed. As noted in the tran- Attorney General Reno demonstrated an telligence gathering activities for or on be- script of Attorney General Reno’s testimony: unfamiliarity with technical requirements of half of the PRC which activities might in- ‘‘On 8–12–97 Mr. Allan Kornblum of OIPR Section 1802 versus Section 1804. She was volve violations of the criminal laws of the advised that he could not send our (the FBI) questioned about the higher standard under United States and that his wife, Sylvia Lee, application forward for those reasons. We 1802 than 1804: ‘‘It seems the statutory aided, abetted or conspired in such activi- had not shown that subjects were the ones scheme is a lot tougher on 1802 on its face.’’ 85 ties. Given what the FBI and OIPR knew at who passed the W–88 [design information] to Attorney General Reno replied: ‘‘Well I don’t know. I’ve got to make a finding that the time, it should have resulted in the sub- the PRC, and we had little to show that they under 1804, that it satisfies the requirement mission of a FISA application and the were presently engaged in clandestine intel- and criteria—and requirement of such appli- issuance of a FISA order.’’ 78 ligence activities.’’ 80 In evaluating the sufficiency of the FBI’s It is obviously not necessary to have a cation as set forth in the chapter, and it’s fairly detailed.’’ 86 statement of probable cause, the Attorney showing that the subjects were the ones who When further questioned about her inter- passed W–88 design information to the PRC. General and the Department of Justice failed pretation on 1802 and 1804, Attorney General That would be the standard for establishing to follow the standards of the Supreme Court Reno indicated lack of familiarity with these guilt at a trial, which is a far higher stand- of the United States that the requirements provisions, saying: for ‘‘domestic surveillance may be less pre- ard than establishing probable cause for the ‘‘Since I did not address this, let me ask cise than that directed against more conven- issuance of a search warrant. Attorney Gen- Ms. Townsend who heads the office of policy tional types of crime.’’ In United States v. eral Reno contended that the remainder of review to address it for you in this context U.S. District Court 407 U.S. 297, 322–23 (1972) the 12 individuals identified in the AI would and then I will. . . .’’ 87 the Court held: have to be ruled out as the ones who passed As noted in the record, the offer to let Ms. ‘‘We recognize that domestic security sur- W–88 design information to the PRC before Townsend answer the question was rejected veillance may involve different policy and probable cause would be established for in the interest of getting the Attorney Gen- practical considerations from the surveil- issuance of the FISA warrant on Dr. Lee. eral’s view on this important matter rather lance of ‘‘ordinary crime’’ . . . the focus of That, again, is the standard for conviction at than that of a subordinate. domestic surveillance may be less precise than trial instead of establishing probable cause The lack of communication between the that directed against more conventional types of for the issuance of a search warrant. Thus, it Attorney General and the Director of the crime. . . . Different standards may be com- is apparent from the Kornblum statement FBI on a matter of such grave importance is patible with the Fourth Amendment if they that the wrong standard was applied: ‘‘that troubling. As noted previously, Director are reasonable both in relation to the legiti- subjects were the ones that passed the W–88 Freeh sent John Lewis, Assistant FBI Direc- mate need of government for intelligence in- [design information] to the PRC.’’ 81 tor for National Security to discuss this formation and the protected rights of our DOJ was also wrong when Mr. Kornblum matter with the Attorney General on August citizens. For the warrant application may concluded that: ‘‘We had little to show that 20, 1996. However, when the request for a re- vary according to the governmental interest to they were presently engaged in clandestine view of the matter did not lead to the for- be enforced and the nature of citizen rights intelligence activities.’’ 82 There is substan- warding of the FISA application to the deserving protection.’’ [emphasis added] tial evidence that Dr. Lee’s relevant activi- court, Director Freeh did not further press Even where domestic surveillance is not ties continued from the 1980s to 1992, 1994 and the issue. And Attorney General Reno con- involved, the Supreme Court has held that 1997 as noted above. ceded that she did not follow up on the Wen the first focus is upon the governmental in- When FBI Assistant Director John Lewis Ho Lee matter. During the June 8 hearing, terest involved in determining whether con- met with Attorney General Reno on August Senator Sessions asked, ‘‘Did your staff con- stitutional standards are met. In Camera v. 20, 1997, to ask about the issuance of the vey to you that they had once again denied Municipal Court of the City and County of San FISA warrant, Attorney General Reno dele- this matter?’’ 88

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00027 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S13800 CONGRESSIONAL RECORD — SENATE December 20, 2001 Attorney General Reno replied, ‘‘No, they been to obtain FISA coverage. It now faced tification from the Director of the FBI (or of had not.’’ 89 the prospect of no FISA coverage, an eventu- one of the few other officials who are author- As the Bellows Report concludes, ‘‘The ality for which it had never prepared. The ized to make FISA requests), the Attorney failure to advise the Attorney General of the other consequence, of course, is that such in- General must explain in writing why the De- resolution of this matter had an unfortunate formation as might have been acquired partment does not believe that probable consequence: It effectively denied the FBI through FISA coverage was not acquired. It cause has been established, and to make rec- the true appeal it had sought.’’ 90 is impossible to say just what the FBI would ommendations for improving the request. The June 8, 1999 hearing also included a have learned through FISA surveillance. When given such recommendations in writ- discussion as to whether FBI Director Freeh That is, after all, the point of surveillance. ing, the requesting official must personally should have personally brought the matter What is clear is that [deleted] should have supervise the implementation of any such again to Attorney General Reno. The Attor- been approved, not rejected. For all the prob- recommendations. These procedures will en- ney General replied that she did not ‘‘com- lems with the FBI’s counterintelligence in- sure that disagreements over matters of plain’’ about FBI Director Freeh’s not doing vestigation of Wen Ho Lee, and they were probable cause are resolved rather than al- so and stated, ‘‘I hold myself responsible for considerable, the FBI had somehow managed lowed to linger, as happened in the Wen Ho it.’’ 91 to stitch together an application that estab- Lee case. Attorney General Reno conceded the seri- lished probable cause. That OIPR would dis- Investigation from August 12, 1997 to December ousness of the case, stating, ‘‘I don’t think agree with the assessment would deal this 23, 1998 the FBI had to convey to the attorneys the investigation a blow from which it would not Notwithstanding the serious evidence seriousness of it. I think anytime you are recover.’’ 96 against Dr. Lee on matters of great national faced with facts like this it is extremely se- Had the FBI obtained the FISA search war- security importance, the FBI investigation rious.’’ 92 rant, it might have had a material effect on languished for 16 months, from August 1997 In the context of this serious case, it would the investigation and criminal charging of until December 1998, with the Department of have been expected that Attorney General Dr. Lee. Given the serious mistakes that had Energy permitting Dr. Lee to continue on Reno would have agreed with FBI Director been made by the FBI prior to 1997, there is the job with access to classified information. Freeh that the FISA warrant should have no guarantee that a FISA warrant would After OIPR’s August 1997 decision not to been issued. In her testimony, she conceded have led to a successful conclusion to the in- forward the FISA application, FBI Director that if some 300 lives were at stake on a 747 vestigation, but the failure to issue a war- Louis Freeh met with Deputy Energy Sec- she would take a chance, testifying: ‘‘My rant clearly had an adverse impact on the retary Elizabeth Moler to tell her that there chance that I take if I illegally search some- case. body, if I save 300 lives on a 747, I’d take To put the 1997 FISA rejection in perspec- was no longer any investigatory reason to it.’’ 93 tive, consider that the open network to keep Lee in place at LANL, and that DOE In that context, with the potential for the which Dr. Lee had transferred the legacy should feel free to remove him in order to PRC obtaining U.S. secrets on nuclear war- codes was ‘‘linked to the Internet and e-mail, protect against further disclosures of classi- heads, putting at risk millions of Americans, a system that had been attacked several fied information. In October 1997, Director it would have been expected that the Attor- times by hackers.’’ 97 Although we do not Freeh delivered the same message to Energy ney General would find a balance in favor of know the exact figures for the number of Secretary Federico Pena that he had given 101 moving forward with the FISA warrant. As times that it was accessed, it has been re- to Moler. These warnings were not acted demonstrated by her testimony, Attorney ported that between October 1997 and June on, and Dr. Lee was left in place, as were the General Reno sought at every turn to mini- 1998 alone, ‘‘there were more than 300 foreign files he had downloaded to the unclassified mize the FBI’s statement of probable cause. attacks on the Energy Department’s unclas- system, accessible to any hacker on the On the issue of Dr. Lee’s opportunity to have sified systems, where Mr. Lee had Internet. After the rejection of the FISA warrant re- visited Beijing when he had been in Hong downloaded the secrets of the U.S. nuclear quest on August 12, it took the FBI three and Kong and incurred additional travel costs of arsenal.’’ 98 the approximate expense of traveling to Bei- Consider also the following from a Decem- one-half months to send a memo dated De- jing, the Attorney General said that ‘‘an un- ber 23, 1999, Government filing in the crimi- cember 19, 1997, to the Albuquerque field of- explained travel voucher in Hong Kong does nal case against Dr. Lee: fice listing fifteen investigative steps that not lead me to the conclusion that someone ‘‘. . . in 1997 Lee downloaded directly from should be taken to move the investigation went to Beijing any more than they went to the classified system to a tenth portable forward. The Albuquerque field office did not Taipei.’’ 94 computer tape a current nuclear weapons de- respond directly until November 10, 1998. The It might well be reasonable for a fact-find- sign code and its auxiliary libraries and util- fifteen investigative steps were principally er to conclude that Dr. Lee did not go to Bei- ity codes.’’ 99 in response to the concerns raised by OIPR jing; but, certainly, his proximity to Beijing, This direct downloading had been made about the previous FISA request. To protect the opportunity to visit there and his incli- possible by Los Alamos computer managers sources and methods, the specific investiga- nation for having done so in the past would who made Lee’s file transfers ‘‘easier in the tive steps in the December 19, 1997 teletype at least provide some ‘‘weight’’ in assessing mid–1990s by putting a tape drive on Lee’s cannot be disclosed, but have been summa- probable cause. But the Attorney General classified computer.’’ 100 As incomprehensible rized by the FBI as follows: dismissed those factors as having no weight as it seems, despite the fact that Dr. Lee was 1. Conduct Additional Interviews even on the issue of probable cause, testi- the prime suspect in an ongoing espionage (a) Open preliminary inquiries on other in- fying, ‘‘I don’t find any weight when I don’t investigation, and despite plans to limit his dividuals named in the DOE AI who met crit- know where the person went.’’ 95 Of course it access to classified information to limit any ical criteria; is not known ‘‘where the person went.’’ If damage he might do, DOE computer per- (b) Develop information on associate’s that fact had been established, it would have sonnel installed a tape drive on his computer background, and interview the associate, and been beyond the realm of ‘‘probable cause.’’ that made it possible for him to directly (c) Interview co-workers, supervisors, and Such summary dismissal by the Attorney download the nation’s top nuclear secrets. neighbors. General on a matter involving national secu- An important aim of surveillance under 2. Conduct Physical Surveillance 3. Conduct Other Investigative Techniques rity is inappropriate given the cir- the FISA statute is to determine whether (a) Review information resulting from cumstances. In other legal contexts, oppor- foreign intelligence services are getting ac- cess to our classified national security infor- other investigative methods; tunity and inclination are sufficient to cause (b) Review other investigations for lead mation. Although we do not know, and may an inference of certain conduct as a matter purposes; and never know, why Dr. Lee placed these classi- of law. (c) Implement alternative investigative The importance of DOJ’s erroneous inter- fied files on an unsecure system, there methods.102 should be no doubt that transferring classi- pretation of the law in this case, which re- Only two of the leads were seriously pur- fied information to an unclassified computer sulted in the FISA rejection, should not be sued. Most importantly, the FBI did not system and making unauthorized tape copies underestimated. Had this application for a open investigations on the other individuals of that information created a substantial op- FISA warrant been submitted to the court, named in the DOE AI until much later. it doubtless would have been approved. DOJ portunity for foreign intelligence services to officials reported that approximately 800 access that information. The breakdown of The False Flag FISA warrants were issued each year with no communication between the FBI and DOJ One of the steps recommended in the De- one remembering any occasion when the which resulted in the rejection of the FISA cember 1997 HQ investigative plan was car- court rejected an application. in 1997 resulted in yet another missed oppor- ried out in August 1998. The results of this Assistant U.S. Attorney Randy Bellows tunity to find and protect the information ‘‘False Flag’’ operation against Dr. Lee are concurred on the damage done by OIPR’s re- Dr. Lee illegally put at risk. partially described in a November 10, 1998 jection of the FISA request: Certain provisions of the Counterintel- memorandum from Albuquerque to FBIHQ. ‘‘OIPR’s erroneous judgment that [deleted] ligence Reform Act of 2000, which became The memorandum is identified as a request did not contain probable cause could not law as Title VI of Public Law 106–567 on De- for electronic surveillance and lays out the have been more consequential to the inves- cember 27, 2000, will prevent the kinds of basis for probable cause, including a descrip- tigation of Wen Ho Lee. From the beginning problems that plagued this FISA request. tion of a series of phone calls between Dr. of that investigation, the FBI’s objective had The law now requires that, upon written no- Lee and an individual posing as an officer of

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00028 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S13801 the Ministry of Foreign Affairs and Ministry and Review that prior concerns about wheth- they did with substantial vigor. For several of State Security. According to the memo, er Dr. Lee was ‘‘currently engaged’’ as an months during the summer of 1998, the Albu- this undercover agent (UCA) introduced him- agent of a foreign power had been addressed querque office collected information to de- self to Dr. Lee ‘‘as a representative of the by his dealings with the undercover agent. termine whether or not Dr. Lee was, in fact, ‘concerned Department,’ from Beijing, PRC,’’ Among the key points that should have been engaged in some sort of clandestine commu- and explained that the purpose of his visit to worked into the renewed FISA application nication from his home. Sante Fe was to ‘‘meet with Wen Ho Lee to are the following: The Albuquerque case agents, with the assure of Lee’s well-being in the aftermath of That Dr. Lee agreed to meet with an indi- help of a technical adviser who was brought the conviction of a Chinese-American sci- vidual purporting to be an agent of a foreign in specifically for the purpose of helping on entist, Peter Lee in California.’’ 103 government, traveling in the U.S. in civilian this issue, formed a hypothesis that Dr. Lee The Albuquerque memo describes Dr. Lee clothes to avoid detection by U.S. authori- was communicating by satellite. They in- as being ‘‘skeptical of the entire situation ties. Although Dr. Lee called back and can- cluded this information, and much of the and apprehensive about meeting face-to-face celed the face-to-face meeting, he never re- supporting data, in the November 10, 1998 re- with [the UCA]’’ and relates how Dr. Lee ported to lab security personnel that he had quest for a FISA warrant. The agents did not mentioned that ‘‘departmental policy at agreed to meet in the first place. assert conclusively that Dr. Lee was using LANL requires him to report to his superior That Dr. Lee accepted the contact number SRAC or satellite communications, but they if he meets with a representative of a foreign of an individual claiming to be an agent of a explained their reasons for believing that he government, however, it does not mean that foreign power, yet failed to disclose that fact might be doing so and requested help in he is forbidden to meet such a person.’’ 104 Dr. to lab security officials about the incident making a final determination about the sig- Lee stated a preference for discussing any when asked about this contact. Dr. Lee ap- nificance of the possible communications. matters with the representative of the PRC parently admitted more of the details of the The FBI has subsequently concluded that over the phone, but when told that there August phone conversations when he was the observed phenomenon which originally were other sensitive issues besides the Peter interviewed by FBI agents in January 1999, led the Albuquerque case agents to believe Lee case which must be discussed in person, but his failure to acknowledge this fact when that Dr. Lee might be using SRAC was not Dr. Lee agreed to meet the UCA at the Hil- he spoke to Los Alamos officials in August linked to any communication from Dr. Lee’s 105 ton Hotel. 1998 continued a pattern of incomplete dis- house. The FBI’s technical analysis of this About ten minutes after agreeing to travel closure from Dr. Lee. issue is thorough and convincing. On the cur- to meet the UCA, Dr. Lee called back and That Dr. Lee asked questions during the rent state of the record, the phenomenon said he had changed his mind, reiterating his conversation which indicated a knowledge of which led the FBI to suspect that Dr. Lee concerns about registering with his superior PRC intelligence and scientific organizations was engaged in surreptitious communica- when meeting with foreign government offi- and the operational methods used by these tions, while still unexplained, cannot be con- cials. Given that Dr. Lee would not agree to agencies. clusively linked to anything that was going a face-to-face meeting, the UCA said that None of these new items of information on inside Dr. Lee’s house or on his property. ‘‘although he was an official from the PRC was sufficient, on its own, to tip the balance What is disturbing, however, is that the government, he was traveling under civilian of probable cause against Dr. Lee. However, FBI did not even begin this analysis until status on this trip so that he could avoid in the context of the other evidence that had November 1999, shortly after the November 3, scrutiny by the United States govern- already been gathered by the FBI, these ele- 1999 closed hearing which focused heavily on ment.’’ 106 The UCA then asked Dr. Lee if he ments were certainly relevant to a probable this issue. The case manager at FBI Head- had been interviewed by any U.S. authori- cause determination and should have been quarters who received the November 10, 1998 ties, including the FBI, and whether Dr. Lee relayed to OIPR for consideration. While the FISA request from Albuquerque rejected the had noticed anything unusual or was being FBI informally told OIPR of Dr. Lee’s failure new request, despite the fact that it con- treated differently by his employer or had to fully report the August contact, that con- tained new information beyond what the FBI any restrictions on his travel arrangements versation did not take place until three had felt was sufficient, in 1997, to get a FISA in the wake of the Peter Lee case. Dr. Lee re- months after the incident occurred. A proper warrant. Outside the Albuquerque field of- sponded negatively.107 and timely interpretation of the False Flag The UCA then told Dr. Lee that one of the fice, no one in the FBI made any real effort operation would have set the investigation to understand the data in the November 10, reasons he wanted to meet was to see if there on a very different course in late 1998. The was any material to take back to the PRC. 1998 FISA request. Bellows Report supports the judgement that Even when the dynamics of the case After Dr. Lee said there was not any such the FBI’s handling of the False Flag was in- material, the UCA said that ‘‘since the mate- changed after the FBI concluded that Dr. appropriate, and that the information gained Lee had not passed the December 23, 1998 rial he brought back to China and the speech through the False Flag would have added to he gave were so helpful, did Lee have any polygraph, and changed again when Dr. Lee a showing of probable cause necessary for a failed an FBI polygraph on February 10, 1999, plans in going to the PRC in the near fu- FISA warrant. ture.’’ 108 Dr. Lee said that he would probably no one in the FBI expressed any interest in Surreptitious Communications not be going to the PRC until after his re- examining the possibility that there might tirement from LANL in one or two years. He The December 19, 1997 directive from FBI be something more to the SRAC issue than did not, as one would expect, deny that he Headquarters also revived an investigative initially suspected. The FBI still did not re- had previously sent material. issue that had come to the FBI’s attention in visit the clandestine communications issue The next day (August 19), the UCA called 1995, prior to the start of the Kindred Spirit after learning that Dr. Lee had been Dr. Lee again, saying that he would be leav- investigation. Among the 15 actions that FBI downloading computer files and putting ing Santa Fe in a few days and asking if Dr. Headquarters directed the Albuquerque of- them on portable tapes. The notion that Lee would like to have a number where he fice to take was a reinvestigation of the pos- there might be a link between the clandes- could contact the UCA in the future. Dr. Lee sibility that Dr. Lee was engaging in clan- tine communications and the portable tapes said he would like to have a number, and was destine communications, using either a sat- apparently never occurred to the FBI, and no provided a pager number and was told that it ellite system or Short Range Agent Commu- effort was made to investigate the meaning belonged to an American friend who had nications (SRAC). of the strange electromagnetic phenomenon helped the UCA and his associates in the As part of the 1994–1996 investigation of Dr. that had led the FBI case agents to suspect past, and who could be trusted.109 Lee, the FBI had learned that Dr. Lee was re- that Dr. Lee was using SRAC. Dr. Lee did not immediately report this ported to have installed a satellite antenna Instead of taking action on the new infor- contact, but he told his wife who told a near his home and was suspected of using it mation, the case manager sent back a cable friend, who told DOE security. When Dr. Lee to communicate surreptitiously. The case on December 10, telling the case agents that was questioned by DOE counterintelligence agents requested assistance in investigating FBIHQ had reviewed the new FISA request personnel about the phone call, he was the possibility that Dr. Lee was engaged in and determined that it did ‘‘not yet contain vague, and failed to mention the beeper num- some sort of satellite communications, but the justification necessary to successfully ber or the hotel. the request was summarily dismissed by the support a FISA Court application for elec- The FBI did not properly handle the infor- case manager at FBI Headquarters, Super- tronic surveillance,’’ and recommended that mation learned from the False Flag oper- visory Special Agent Craig Schmidt, and the Albuquerque send copies of written reports ation. First, it took more than three months matter was not further pursued for nearly from LANL’s Counterintelligence officer, for the transcript of the exchange between three years. Terry Craig, regarding Dr. Lee’s deception Dr. Lee and the UCA to get to FBI Head- After the FISA request was rejected in about the False Flag.110 quarters where it could be fully analyzed. 1997, in part because the FBI had not been On the merits, the failure to forward the Unfortunately, the transcript (and the FISA able to convince OIPR that Dr. Lee was cur- FISA request to OIPR is inexplicable. The request based on the results of the False rently engaged in any clandestine activity, FBI had felt since 1997 that they had suffi- Flag) arrived at FBI HQ just when the DOE the case manager’s interest in the commu- cient probable cause to get a FISA warrant. was asserting control over the case. Had the nications issue picked up. In the December The 1998 investigative steps yielded new in- transcript been analyzed in the full detail 19, 1997 communication to Albuquerque, he formation that directly addressed the con- that it deserved, the FBI would have been directed the agents in the field to renew cerns OIPR had raised about the Lees being able to tell the Office of Intelligence Policy their investigation of this matter, which currently engaged in clandestine activity,

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00029 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S13802 CONGRESSIONAL RECORD — SENATE December 20, 2001 yet the FBI case manager summarily dis- in August 1997 when DOJ’s Office of Intel- recommended removing Dr. Lee from access missed the new request, failing to even for- ligence Policy and Review rejected the FISA more than a year before.118 Mr. Curran as- ward it to OIPR for consideration. The fail- request. The local case agents spent most of sumed his position as Director of OCI in ure to take action when the dynamics of the 1998 trying to get the investigation back on April 1998 and immediately conducted a 90– case changed in early 1999 is just incompre- track, but were not notably successful. By day review of the CI program at DOE as hensible. November 1998, the newly appointed lead mandated by PDD–61. He received what he When such serious national interests were case agent was ready to move forward and describes as a ‘‘summary briefing on the Kin- involved in this case, it was simply unac- sent a new request for FISA coverage to FBI dred Spirit investigation.’’ He was aware of ceptable for the FBI to tarry from August 12, HQ. Unfortunately, the request fell on deaf the False Flag that was run in August and 1997 to December 19, 1997, to send the Albu- ears for reasons that will be explored more wanted to ‘‘get the case moving and to re- querque field office a memo. It was equally fully below. solve the issues of the possible loss of sen- unacceptable for the Albuquerque field office At approximately the same time the case sitive information,’’ but the fact that the to take from December 19, 1997 until Novem- agents were seeking FISA coverage, Dr. Lee FBI had recommended that Dr. Lee’s access ber 10, 1998 to respond to the guidance from asked for permission to travel to Taiwan to to classified information be pulled was ap- Headquarters, and then for the FBI not to visit a company called Asiatek. According to parently not shared with Mr. Curran until renew the request for a FISA warrant based an FBI document describing this request, Dr. mid-December 1998, while Dr. Lee was in Tai- on the additional evidence. The FBI’s han- Lee said that ‘‘Asiatek invited him to visit wan.119 It should be noted, however, that Mr. dling of this issue is impossible to justify. Taiwan in December 1998 to give a presen- Curran told the DOE IG that he learned The December 23, 1998 Polygraph tation in exchange for his airfare.’’ 112 When about Director Freeh’s 1997 comments on When Dr. Lee returned to the United Dr. Lee submitted a request to travel under moving Dr. Lee in October 1998, two months States from a three-week trip to Taiwan in these terms, the LANL Internal Security before he finally took action.120 This is sig- December 1998, he was administered a poly- section denied it, so Dr. Lee reportedly trav- nificant because it undermines Mr. Curran’s graph examination on instructions from Mr. eled at his own expense to visit an ailing sis- assertion that the reason he acted in Decem- Ed Curran, Director of DOE’s Office of Coun- ter.113 ber 1998 was because he had just learned of terintelligence (OCI). Although Dr. Lee was While the Internal Security section was Director Freeh’s 1997 recommendations. initially thought to have passed the poly- correct to deny Dr. Lee’s request to let That the Director of DOE’s Office of Coun- graph with very high scores, his access to the Asiatek pay his travel expenses, the request terintelligence was not informed (or did not X-Division was temporarily suspended to should have set off alarm bells within both make himself aware) of the FBI’s view that give the FBI time to conclude its investiga- DOE and the FBI. The aforementioned FBI Dr. Lee should be pulled from access reflects tion. When the polygraph results were exam- document says: poorly on the DOE and the FBI. How could ined by the FBI in late January or early Feb- ‘‘Asiatek is a Taiwan-based company anyone brief this case to Mr. Curran in 1998 ruary 1999, it became clear that Dr. Lee had founded in 1985 which introduced state-of-the without mentioning that the Director of the not passed, and the investigation was re- art information technology to both China FBI had twice told DOE’s top leadership that started, eventually leading to the dismissal and Taiwan. The company works with both Dr. Lee’s access to classified information of Dr. Lee from LANL and, several months private industry and Taiwan government re- should be removed? What would one say, later, his indictment and jailing. search facilities such as the Chung Shan In- when briefing the new head of counterintel- The circumstances surrounding this De- stitute of Science and Technology (adminis- ligence, that would not somehow convey the cember 1998 polygraph are among the most tered by the Ministry of National Defense). message that the FBI was concerned about important but least understood aspects of Asiatek specializes in information tech- the potential damage from keeping him in the case. The June 1999 report of the Presi- nology, program planning and management, access? And how could the top counterintel- dent’s Foreign Intelligence Advisory Board business process re-engineering, integrated ligence officer in the DOE not inquire as to raised questions about this issue and rec- logistic support, and continuous acquisition whether consideration had been given to re- ommended that the Attorney General deter- and life cycle support environmental plan- ducing the risk posed by an individual who mine, ‘‘why DOE, rather than the FBI, con- ning and implementation. Asiatek also de- was the chief suspect in a major espionage ducted the first polygraph in this case when velops cannon and tank systems.’’ 114 investigation? This lack of communication the case was an open FBI investiga- The fact that the prime suspect in a major defies comprehension. tion....’’111 The subcommittee’s investiga- espionage investigation was asking to travel The Counterintelligence Reform Act of 2000 tion demonstrates that the handling of the out of the country for the second time in less will prevent such disasters in the future. The December 23, 1998 polygraph, or more accu- than nine months, with his travel to be paid Act requires the Director of the FBI to no- rately the mishandling of this polygraph is for by a foreign company, should have been tify appropriate officials, in writing, when a one of the most consequential errors of the a call to action by someone in DOE or the full field investigation is started in an espio- Wen Ho Lee matter. To understand the im- FBI. The local case agent sent a message to nage case, and to present to the head of the pact of the polygraph on the case, it is nec- FBIHQ asking that this information be con- affected agency a written assessment of the essary to review: 1) the events leading up to sidered ‘‘in conjunction with Albuquerque potential impact of the actions of that agen- and the reasons for the December 23, 1998 Division’s request for FISA/MISUR coverage cy or department on an FBI counterintel- polygraph; 2) the results of that polygraph; of Wen-Ho Lee,’’ 115 but the case manager did ligence investigation. It will not be possible and 3) the effect on the investigation of the not act on it. in future investigations for the head of coun- erroneous polygraph reading by Wackenhut. If the travel alone was not sufficient to terintelligence in an agency to claim igno- The short answer is that: 1) DOE jumped into compel the FBI and/or DOE to take some rance of an FBI recommendation regarding a the case in a heavy handed way during late positive steps to regain control over the suspect’s access to classified information. 1998 in an effort to avoid criticism related to case, the nature of the work performed by And the FBI will have to ensure that its co- the upcoming release of the Cox Committee Asiatek and its relationship to the Chung ordination with the affected agency is both report, 2) the Wackenhut examiners’ incor- Shan Institute of Science and Technology close and continuous, so that when new offi- rect conclusion that Dr. Lee passed the poly- should have been because these matters re- cials come into decision-making roles, they graph prompted the FBI to nearly shut down lated directly to concerns that had been will be fully informed as to the important as- its investigation of Dr. Lee, 3) with the re- raised about Dr. Lee during the course of the pects of pending cases. The FBI/DOE poly- sult that during the time he supposedly was investigation. When asked why Dr. Lee was graph disaster in the Wen Ho Lee case should denied access to the X-Division, Dr. Lee was allowed to travel under these circumstances, be the last such calamity. The interim report issued in March 2000 able to return and recover the tapes that are Mr. Curran replied that ‘‘FBI personnel were touched briefly on the polygraph issue, now missing. Given the vast number of mis- running the investigation and were the ones prompting a letter from Mr. Curran,121 who takes that had already been made prior to that allowed Dr. Lee to travel to Taiwan. If provided the following account of the events December 1998, and the number that were it were my decision, I would not have al- 116 leading up to the polygraph: made thereafter, it would be wishful think- lowed Mr. Lee to leave the country.’’ Mr. Curran’s statement on the travel issue ‘‘Every detail of this case was coordinated ing to believe that a correct reading of the reflects a larger problem that plagued the between DOE and the FBI. I personally want- polygraph would have led to a successful Kindred Spirit investigation from beginning ed the FBI to do the interview rather than conclusion in this case, but Wackenhut’s er- to end, namely the systemic breakdown of DOE, but they stated that they were not roneous initial interpretation of the results effective communication between DOE and ready to interview him because they first and the long delay in getting the charts the FBI on matters of great importance.117 If wanted to interview some neighbors and as- passed to FBIHQ for review put the case on Mr. Curran was opposed to letting Dr. Lee go sociates of Mr. Lee. DOE had been asking the a downward spiral from which it almost to Taiwan, he should have said something. FBI to bring this case to a conclusion since never recovered. Because these issues are As Director of DOE’s OCI, his opinion clearly the [false flag] in August. I did not believe I both highly important and widely misunder- had weight. He did not act, so Dr. Lee went had the luxury of waiting any longer since stood, each is examined in some detail. to Taiwan. the investigative activity in August and this The events leading up to the December 23, As another example of ineffective commu- was Mr. Lee’s first opportunity to leave the 1998 Polygraph nication on important issues, consider Mr. U.S. I was very concerned as to what he As noted previously, the FBI’s investiga- Curran’s statement that he first learned on would do and say on his trip to Taiwan and tion of Dr. Lee had been dealt a severe blow December 15, 1998, that Director Freeh had then what he would do upon his return. Since

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00030 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S13803 the FBI was not going to interview Mr. Lee The disagreement between FBI and DOE on December 21, 1998. The memorandum ex- and bring this case to a conclusion prior to over how best to proceed in late 1998 only plains that DOE counterintelligence per- his departure to Taiwan, I made the decision, partially explains why the investigation sonnel wanted to ‘‘neutralize their employ- with the Secretary’s approval, to remove Mr. lurched forward with FBI seemingly in ee’s access to classified information prior to Lee from access upon his return from Taiwan charge one moment (letting Dr. Lee travel to the issuance of a final report by the Cox and until the FBI could conclude their inves- Taiwan, contrary to Mr. Curran’s preference) Committee.’’ When questioned on this point tigation through interview and polygraph. and Mr. Curran prevailing the next (getting Mr. Curran acknowledged that the conversa- ‘‘Mr. Lee returned from Taiwan on Decem- the Albuquerque SAC to overrule the lead tion mentioned in the memo had taken ber 23, 1998. He was interviewed and removed case agent on the polygraph question). Other place, but denied any connection between from access and asked to take a polygraph. testimony and documents provided to the DOE’s desire to polygraph Dr. Lee and the The FBI was aware that if Mr. Lee refused to subcommittee paint a more complete and release of the Cox Committee report.130 take a DOE polygraph, his security clearance markedly different picture of the events sur- Mr. Curran’s account of these events is would have been removed and steps taken to rounding the polygraph of Dr. Lee on Decem- contradicted by testimony from other indi- terminate his employment; if Mr. Lee agreed ber 23, 1998. Unfortunately, the picture they viduals who were also directly involved. to take the test and failed, his clearance paint is one of DOE trying desperately to When Director Freeh testified before the would be removed and termination pro- protect its image from the revelations it ex- Senate Select Committee on Intelligence on ceedings would be initiated. This activity pected to come with the release of the Cox May 19, 1999, he told the committee: was completely coordinated with the FBIAQ. Committee report, with the FBI going along, ‘‘DOE was seeking to establish grounds to On December 21, 1998, a memo was furnished and neither agency focusing on the national terminate Mr. Lee in December of 1998, and to the Secretary of Energy from me setting security implications of their actions. they went forward with their polygraph and forth the above scenario. Mr. Lee took the To understand the context in which these interview with that objective. We, at that polygraph test and representatives from decisions were being made, consider that the point, wanted more time to prepare for a FBIAQ were present.’’ 122 In subsequent correspondence with the Cox Committee was taking testimony in confrontational interview which in these subcommittee, Mr. Curran elaborated on his mid-December, and that key portions of the kinds of cases is the most important inter- 131 reasons for removing Dr. Lee’s access in De- testimony centered on security at the na- view.’’ cember 1998. Responding to follow-up ques- tional labs. The atmosphere leading up to Other FBI files from this period support tions from a September 27, 2000 sub- the Cox Committee hearings has been de- the contention that Secretary Richardson committee hearing, Mr. Curran cited four scribed as follows: wanted Dr. Lee fired in early 1999. A January reasons for his decision to remove Dr. Lee ‘‘With impeachment as a backdrop, allega- 21 memo from FBI Supervisory Special from access in December 1998: ‘‘(1) the fact tions that the Clinton administration was al- Agent C. H. Middleton to Deputy Assistant that the FBI no longer required Lee be kept lowing China easy access to American se- Director Horan said that ‘‘DOE is anxious to in access, (2) my discomfort at the extent of crets collided with charges that China’s mili- avoid criticism about the case. It removed Dr. Lee’s access, which was greater than I tary had funneled money into Democratic the subject’s access to classified information had originally thought, (3) the fact that the coffers. The New York Times reported that on 12/23/98. DOE wants to fire the subject, but FBI’s false flag operation had been unsuc- the daughter of a senior Chinese military of- may not have justification to do so at this cessful, possibly alerting Lee to the inves- ficer was giving money to Democrats while time.’’ 132 tigation, and (4) the fact that Lee was then also working to acquire sensitive American None of the information the government traveling in Taiwan, thus able to travel eas- technology. had in its possession at that point would ily to Hong Kong or the People’s Republic of ‘‘Republicans, opening a new front against have justified a decision to fire Dr. Lee, but China without our knowledge.’’ 123 a beleaguered president, created a House se- firing him would have allowed Secretary While Mr. Curran’s account explains what lect committee, headed by Representative Richardson to avoid criticism that the DOE happened, it does not adequately explain Cox, to investigate whether the government had not taken action on a major espionage why these events took place. It was simply was compromising technology secrets by let- case. Director Freeh’s comments are further inconsistent for DOE to allow Dr. Lee to ting American companies work too closely buttressed by statements that two security travel to Taiwan, yet polygraph him and pull with China’s rocket industry. With its dead- personnel made to the DOE Inspector Gen- his access to classified information upon his line approaching, the committee stumbled eral during an investigation of the decision- return, even though he supposedly passed the on the W–88 case. making process related to Dr. Lee’s clear- polygraph. If Dr. Lee was such a threat that ‘‘Mr. Trulock became a star witness, and ance and access. The former Director of he needed to be polygraphed and removed committee members were riveted by his tes- LANL’s Internal Security Division, Mr. Ken from access, why was he allowed to go to timony. C.I.A. analysts who testified before Schiffer, told the IG that he first heard Dr. Taiwan? And if he passed the polygraph after the committee agreed there was espionage, Lee’s name on December 21, 1998, in a con- returning from Taiwan, including specific people who heard the secret proceedings said, ference call with two individuals from the questions about espionage, why was there but were more equivocal about its value to Office of Counterintelligence, one of whom still a need to remove his access? China.’’ 125 told him that ‘‘the Secretary wanted Mr. Lee Mr. Curran’s explanation for the series of The Mr. Trulock referenced above is Notra to be fired.’’ 133 Mr. Richard Schlimme, the events leading up to the December 1998 poly- Trulock, former DOE intelligence chief. Ac- Counterintelligence Program Manager in the graph shows an investigation that was, at cording to a DOE chronology, the Cox Com- Albuquerque office, told the DOE IG that he best, disjointed and poorly coordinated (de- mittee was briefed by DOE on November 12, had been on annual leave on December 21, spite Mr. Curran’s assertions to the con- 1998 and again on December 7. On December 1998, when he was called to come in to work trary). Consider, for example, that the FBI 16, Mr. Curran, Mr. Trulock and the Director to deal with the Wen Ho Lee situation. When agent who took over the case on November 6, of the DOE’s Office of Intelligence, Mr. Law- he arrived, Mr. Schlimme was told that 1998, did not agree with the DOE decision to rence Sanchez, testified again before the Cox ‘‘Secretary Richardson wanted immediate 126 have Wackenhut 124 give Dr. Lee a polygraph Committee. Describing the impact of his action, so Mr. Curran decided to interview examination, and has called it ‘‘irrespon- testimony to the House panel, Mr. Trulock Mr. Lee immediately.’’ 134 Further, according sible.’’ According to FBI protocol, Dr. Lee told the subcommittee on September 27, 2000 to Mr. Schlimme, ‘‘Mr. Curran wanted Mr. would have been questioned as part of a post- that ‘‘after our initial appearance and par- Lee removed from the laboratory regardless travel interview. However, as Mr. Curran ticularly our second appearance before the of how he did on the polygraph.’’ 135 noted, the case agents were inexplicably un- Cox Committee in December of 1998, there In addition to the evidence described prepared to conduct such an interview and was a high level of agitation within the Of- above, the subcommittee has a sworn deposi- the Special Agent in Charge (SAC) in Albu- fice of Counterintelligence on the part of Mr. tion from the case manager at FBI Head- querque agreed to go ahead with the poly- Sanchez and within the political appointees quarters, Supervisory Agent Craig Schmidt, 127 graph at Mr. Curran’s request. The lead case at the department.’’ Mr. Trulock further who said he had very little control over the agent requested a new FISA in November testified: investigation in December 1998 because the ‘‘it is certainly not a coincidence that 1998, but Supervisory Special Agent Craig ‘‘Department of Energy was becoming more after the FBI provided the information to Schmidt the same FBI case manager at head- and more concerned about how they would the Cox Committee on Dr. Lee and other es- quarters who had put together an action plan appear and how they were appearing during pionage cases within the Department of En- in December 1997 trying to get the investiga- the [Cox] committee meetings,’’ 136 In the tion back on track had suddenly gotten cold ergy that for the first time in almost two context of all the evidence to the contrary, feet on the matter, casually rejecting the years, DOE management became energized Mr. Curran’s assertion that the decision to FISA request without even showing OIPR a about addressing the advice we had received act with regard to Dr. Lee had nothing to do written product. DOE was exercised enough 128 from Director Freeh in August of 1997.’’ with the imminent release of the Cox Com- about Dr. Lee that Ed Curran wanted to give Mr. Trulock’s testimony is supported by mittee report is not persuasive. Dr. Lee a polygraph and pull his access to documentary evidence and testimony from classified information (something the FBI other witnesses. A December 18, 1998, memo- Incorrect reading of the December 23, 1998 had recommended 14 months prior), but was randum from the FBI’s Assistant Director polygraph not willing to stop him from traveling to for National Security, Neil Gallagher, says The subcommittee focused very intently Taiwan. The case was a mess, and then it got that Secretary Richardson would be calling on the question of whether Dr. Lee passed or worse. Director Freeh about the Lee investigation failed the December 23, 1998 polygraph for

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00031 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S13804 CONGRESSIONAL RECORD — SENATE December 20, 2001 three reasons: (1) the erroneous reading lected charts or video tape recording until Mr. Lueckenhoff’s account is consistent changed the course of the investigation, late January 1999. with what actually happened, but the FBI is prompting the FBI to nearly close down its ‘‘When the charts were subjected to the no longer willing to stand by the February investigation at a time when the scrutiny of OCI QC [Quality Control] process, the initial 1999 memo. It is also possible that by Feb- Dr. Lee should have been increasing, (2) it NDI [No Deception Indicated] opinion could ruary 26, 1999, after Dr. Lee had failed an FBI took an inordinate amount of time to dis- not be duplicated or substantiated. polygraph, Albuquerque realized that its fail- cover that the initial reading of the poly- ‘‘The Test Center Manager was advised of ure to obtain the charts in a timely fashion graph was wrong, and (3) the public percep- these QC concerns and was requested to send (and the creation of the disastrous January tion that Dr. Lee really passed the test but the charts to the Department of Defense 22 memo clearing Dr. Lee on the W–88 mat- the FBI somehow later reversed that finding Polygraph Institute (DODPI) which he did. ter) would eventually be questioned. Saying is incorrect. ‘‘DODPI advised the Test Center Manager that the FBI tried to get the charts but had The consequences of the incorrect interpre- that they could not duplicate or support the been denied by Mr. Curran would provide an tation of the December 23, 1998 polygraph are NDI opinion of this test.’’ 144 excuse for the Albuquerque division’s abys- the subject of the next section of this report. In the ‘‘QC Opinion’’ section of the report, mal performance in early 1999. Because the The remainder of this section will address Mr. Renzleman said, ‘‘I am unable to render FBI will not stand by the version of events in the matter of the delay in getting the charts an opinion pertaining to the truthfulness of the February 1999 memo, it is not possible to to the FBI and the question of whether Dr. the examinee’s answers to the relevant ques- know what really happened. Instead, the Lee actually passed or failed this test. tions of this test. Additional testing is rec- FBI’s position has the effect—intended or The initial interpretation of the test was ommended.’’ 145 not—of making it next to impossible to as- made by Wolfgang Vinskey, a Senior Poly- When the charts and videotape were subse- sign responsibility for giving Dr. Lee more graph Examiner with Wackenhut, a private quently analyzed by FBI polygraph experts than a month to regain access to his com- firm that had a contract with DOE to con- in late January or early February, they con- puter and his office, enabling him to delete duct polygraphs. Mr. Vinskey wrote that he cluded that Dr. Lee had failed relevant ques- the incriminating evidence from his com- 146 147 had administered ‘‘a DOE Counterintel- tions or was, at best, inconclusive. puter and destroy the now-missing tapes. ligence Scope PDD Examination’’ to Dr. Lee, Based on these concerns, the FBI arranged The FBI deserves substantial criticism for and concluded that ‘‘this person was not de- for additional interviews and a new poly- its handling of this investigation, but the ceptive when answering the relevant ques- graph on February 10, 1999. In addition to record should be set straight on the result of tions pertaining to involvement in espio- learning on this date that Dr. Lee had reac- the December 23, 1998 polygraph. On this tivated his computer account simply by call- nage, unauthorized disclosure of classified matter, the FBI was correct—Dr. Lee did not ing up the help desk and asking that it be re- information and unauthorized foreign con- pass the polygraph test. stored,148 the FBI concluded Dr. Lee failed tacts.’’ 137 Mr. John Mata, Manager of DOE’s One of the earliest and most sustained at- the February polygraph and increased its in- AAAP Test Center, reviewed the exam and tacks on the FBI’s reading of the December vestigative activity, but by then the chances concurred with Mr. Vinskey that ‘‘upon com- 1998 polygraph came from Dr. Lee’s defense of salvaging the investigation were slipping pletion of testing, the Examinee was not de- team. After Dr. Lee was held without bail at away. the end of 1999, defense attorney Mark ceptive when answering the relevant ques- There remains a serious question about the 138 Holscher claimed that Dr. Lee’s scores on tions. . . .’’ Mr. Mata followed up the ini- chain of events which led to the delayed dis- tial report with a more detailed memo- the 1998 test had been ‘‘ ‘off the charts’’ in in- covery that Dr. Lee did not pass the Decem- 152 randum on December 28, 1998, in which he re- dicating truthfulness.’’ It is a common de- ber 1998 polygraph. A February 26, 1999 fense tactic to take evidence that might be iterated to Mr. Curran the information that memorandum from William Lueckenhoff, As- harmful to the defendant’s position and deal had been in the December 23 polygraph re- sistant Special Agent in Charge in Albu- with it up front, trying to put a positive spin port, namely that ‘‘data analysis of this ex- querque, says: on it. Mr. Holscher’s comments that Dr. amination disclosed sufficient physiological ‘‘The FBI personnel present immediately Lee’s scores were off the charts in indicating criteria to opine Mr. Lee was not deceptive requested the polygraph charts and docu- truthfulness would certainly fit into that when answering’’ the relevant questions.139 mentation to the polygraph in order to have After the exam, the two FBI agents who pattern—taking on an issue that might have it reviewed by FBIHQ. DOE’s initial response to be dealt with if the case went to trial and were on hand were briefed on the results of to this request, as per Ed Curran, DOE Coun- the test. There is a December 21, 1999 memo- getting a positive interpretation planted in terintelligence Office, was not to allow the the public’s mind, to include the potential randum for the record written by John Mata FBI access to the tapes and charts, only the jury pool. As the negotiations between the which describes how the test results were re- 149 numerical results of the polygraph.’’ defense and the government went forward, layed to the FBI.140 Mr. Mata says that he As is discussed elsewhere in this report, Mr. Holscher continued to press the poly- told the lead case agent that the charts did Dr. Lee did not pass the polygraph, and no graph issue, claiming that Dr. Lee had not show significant reaction on three of the one other than the initial reviewers have passed the only test that had been properly questions, but that ‘‘a plus 3 on the fourth been able to interpret the charts to say that administered, and suggesting that the FBI question (relating to having knowledge of he did pass. Given that the charts clearly was wrong to claim that Dr. Lee had failed anyone he knew who had committed espio- show that Dr. Lee did not pass, any effort to either exam. Mr. Holscher’s statements on nage against the United States) was prevent their release to the FBI would be a the polygraph are exactly what one would 141 close.’’ Mr. Mata told the agent that Dr. serious matter. Where DOE was concerned expect a defense lawyer to do, but they have Lee ‘‘had disclosed information during the about criticism because it was being accused created the incorrect impression that the examination that he had not previously re- before the Cox Committee of not taking ac- Wackenhut examiners were right and the ported regarding an approach that was made tion on the case, a failed polygraph would FBI was wrong. to him on his recent or a past trip,’’ and gave tend to prove the critic’s point. However, a Mr. Holscher and Dr. Lee’s supporters got her a sheet of paper containing the data passed polygraph, followed by an investiga- help on this score from a story by CBS re- analyses.142 According to Mr. Mata, the tion which cleared Dr. Lee of the W–88 alle- porter Sharyl Attkisson. The February 2000 agent wrote down the questions from the gations yet later resulted in his firing for un- news report, titled ‘‘Wen Ho Lee’s Problem- exam and asked ‘‘if further processing in- related security violations would show that atic Polygraph,’’ claimed that ‘‘three experts volved the charts being reviewed by their DOE’s critics were wrong about the W–88 in- gave the nuclear scientist passing scores but polygraph examiner (specific reference to vestigation, but that DOE was serious about the FBI later reversed the findings. CBS in- Roger Black) . . .’’ to which he said no.’’ 143 security anyway and ultimately removed Dr. vestigation fuels argument that he was a Mr. Mata’s memo also says that at no time Lee because he was a security risk. In these scapegoat.’’ 153 [on that date] was he asked to provide the circumstances, any shenanigans with the Ms. Attkisson asked precisely the right charts or any allied data from the test to the polygraph charts would be extremely seri- question, ‘‘. . . how could the exact same FBI. ous. charts be legitimately interpreted as ‘pass- During the first week of January, Mr. Mr. Curran strongly denies the allegation ing’ and also ‘failing?’ ’’ 154 To answer this Mata’s memo continues, the entire poly- in Mr. Lueckenhoff’s memo and DOE docu- question, CBS reached out to Richard Keifer, graph package (charts, questions, data anal- ments indicate that Mr. Curran was instru- who was then the chairman of the American ysis sheets and video tape) were sent to OCI mental in getting the full record of the poly- Polygraph Association. Mr. Keifer was also a Polygraph Program Manager David graph into the FBI’s hands in January, former FBI agent who had run the FBI’s Renzleman in Richland, Washington. In mid- 1999.150 polygraph program. The CBS report con- January, Mr. Mata got a call from Mr. When pressed for an explanation of the tinues: Renzleman instructing him to provide the February 26, 1999 memo blaming Mr. Curran ‘‘Keifer says, ‘‘There are never enough local FBI with everything generated by the for the delay in getting the test results, the variables to cause one person to say (a poly- polygraph, which he did. FBI took the position that the memo was graph subject is) deceptive, and one to say An undated Quality Assurance record of only a blind memorandum not intended to he’s non-deceptive . . . there should never be this examination, prepared by David capture official witness statements.151 That that kind of discrepancy on the evaluation of Renzleman contains the following com- does not explain why Assistant Special the same chart.’’ ments: Agent in Charge William Lueckenhoff would ‘‘As to how it happened in the Wen Ho Lee ‘‘This test was initially classified and con- attribute such remarks to Mr. Curran if he case, Keifer thinks, ‘‘then somebody is mak- sequently DOE OCI did not get to see the col- had no factual basis to do so. ing an error.’’

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00032 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S13805 ‘‘We asked Keifer to look at Lee’s poly- questions so as to generate a useful basis of classified X-Division spaces would have only graph scores. He said the scores are ‘‘crystal comparison.’’ 160 limited ramifications. In the Wen Ho Lee clear.’’ In fact, Keifer says, in all his years as Mr. Richard Keifer was also asked to case, however, the incorrect handling of the a polygrapher, he had never been able to evaluate the December 23, 1998 exam in light polygraph issue was one of the most con- score anyone so high on the non-deceptive of his comments to CBS. He provided a de- sequential mistakes in the entire investiga- scale. He was at a loss to find any expla- tailed analysis and critique of the test and tion, likely costing the government an op- nation for how the FBI could deem the poly- reported: portunity to recover the tapes that ulti- graph scores as ‘‘failing.’’ ‘‘My review of the polygraph examination mately led to Dr. Lee’s indictment and con- . . . Since Lee was never charged with espi- of Wen Ho Lee determined the results to be viction, and creating much angst about the onage (only computer security violations), inconclusive. . . . It is my opinion this exam- fate of the nuclear secrets on those tapes. In the content of the polygraph may be unim- ination was not set up, conducted and re- a June 28, 2001 letter, Assistant Attorney portant to his case. But the fact that his viewed using well-established procedures for General Daniel J. Bryant confirmed that scores apparently morphed from passing to counter-intelligence polygraph testing. This ‘‘Dr. Lee has told the debriefing team that failing fuels the argument of those who lack of experience in Foreign Counter-Intel- on December 23, 1998, the computer tapes at claim the government was looking for a ligence polygraph testing contributed to an issue in the indictment were in his X-Divi- scapegoat—someone to blame for the alleged incorrect decision, an unacceptable delay in sion office at the Los Alamos National Lab- theft of masses of American top secret nu- the decision making process, and negated the oratory.’’ 165 clear weapons information by China—and potential of fully uncovering the truth with In other words, the tapes containing the that Lee conveniently filled that role.’’ 155 a timely posttest interrogation.’’ 161 ‘‘crown jewels’’ of American’s nuclear se- The CBS report gave the clear impression Mr. Keifer further noted that ‘‘I have re- crets, that could ‘‘change the global stra- that the Wackenhut examiners were correct. viewed these charts at least a dozen times tegic balance,’’ were sitting in Dr. Lee’s X- Rather than take on the issue, the FBI sim- and have done so under every favorable as- Division office and could have been recov- ply told CBS ‘‘it would be ‘bad’ to talk about sumption I could make and I have never ered by the government if the DOE had not Lee’s polygraph, and that the case [would] be found this examination to be non-decep- gone into the panic mode and put political handled in the courts.’’ 156 The case never tive.’’ 162 considerations ahead of national security went to trial, and the FBI never got the When asked to evaluate the test itself, concerns when it became concerned about chance to explain its interpretation of the which was not a standard set of questions what the Cox Committee report would say. exam. The result has been that there are lin- but one that was created specifically for the The FBI, especially the Albuquerque SAC, gering doubts as to whether the polygraph is examination of Dr. Lee, Mr. Keifer said that bear equal responsibility for this turn of a reliable tool, and whether it was misused ‘‘the fundamental problem with this exam- events for allowing it to happen. by the FBI in the Wen Ho Lee case. ination was in question formulation.’’ He One of the most fundamental tenets of When the case of FBI Special Agent Robert then took issue with both the relevant ques- counterintelligence work is that when you Hanssen broke in February 2001, FBI Direc- tions and the control questions.163 This find- spook a suspect, you watch him. The sus- tor Louis Freeh ordered, among other things, ing is consistent with the concerns raised by pect’s reaction to unexpected events, wheth- an expanded use of the polygraph within the Dr. Capps, as well as by FBI examiners who er planned (as when the FBI decides to con- FBI for counterintelligence purposes. The noted that Dr. Lee appeared to be reacting to front a suspect in a hostile interview) or Judiciary Committee held a hearing on the all the questions, control and relevant. The driven by unanticipated events (like DOE’s utility of polygraphs in law enforcement and structure of the questions used in the test is decision to interview, polygraph and change counterintelligence cases, and heard from a important because a polygraph is designed to Dr. Lee’s classified access for no reason that distinguished panel with witnesses offering measure differences between a subject’s re- he would know about), is a critical element opinions on both sides of the issue. With the sponses to control questions, which should of any counterintelligence investigation. matter of Wen Ho Lee’s polygraph still unre- generate little or no reaction, and the rel- Success often depends on observing and cor- solved, two of the witnesses were asked to evant questions where a substantial response rectly interpreting that reaction. Even if the review the results of the December 23, 1998 is meaningful. Control questions that suspect does not show any apparent reaction polygraph and answer a series of questions produce a reaction have the effect of mini- in the presence of investigators, it is impera- that would address the same concern that mizing the differences between the reactions tive that he be watched to see what he does CBS had raised—how can the same charts be to control questions and relevant questions, when he thinks he isn’t being watched. Peo- interpreted as both passing and failing? thereby rendering the test less useful. ple with problems react differently than peo- Dr. Michael H. Capps, currently Deputy Di- Mr. Keifer also commented on his CBS ap- ple who don’t have anything to worry about. rector for Developmental Programs at the pearance: Failure to maintain proper surveillance ‘‘I was quoted out of context and I felt it Defense Security Service and formerly head under these circumstances can lead to the was deliberate. I had numerous telephonic of DOD’s Polygraph Institute, reviewed the loss of the best opportunity to find out what conversations with Attkisson prior to the polygraph data and said that he could is really going on. In the Wen Ho Lee, it cost taped interview. She was fully briefed re- ‘‘render no opinion regarding whether or not a lot more than that. garding polygraph procedures. I clearly and deception is indicated. . . .’’ 157 Mr. Capps Dr. Lee was definitely spooked by the fully explained to her several times that the went on to describe how he had evaluated interview and polygraph on December 23. Ac- ‘‘scores’’ of the examiners were high on the the exam with and without the aid of the cording to an FBI chronology, the polygraph non-deceptive side, but that subsequent test- John Hopkins algorithm, which is designed was completed at 2:18 p.m. and he was told at ing and admissions indicated Lee was in fact to provide a statistical analysis using a about 5:00 p.m. that his access to secure deceptive. During the course of our conversa- mathematical model to render a probability areas of X-Division and to both his secure tions she suggested cover up and misconduct of deception. He noted that ‘‘there are what and open X-Division computer accounts had of various officials in the matter. Unfortu- I believe to be substantial differences in the been suspended. At 9:36 p.m., Dr. Lee made nately, during the taped interview she asked scores my evaluation produced and those of four attempts to enter the secure area of X- only about the ‘‘scores’’ and did not provide the Wackenhut examiner. . . . I cannot ac- Division through a stairwell. At 9:39 p.m., he an opportunity for me to clarify. In my opin- count for the differences between my results tried again through the south elevator.166 At ion this was deliberate, and the piece was and those of the Wackenhut examiners.’’ 158 3:31 a.m. on Christmas Eve, Dr. Lee again In response to a direct question about how manipulated to suggest wrongdoing by the tried to gain access to the X-Division. Had different examiners could reach substan- government. Once I saw the piece, I called of- the FBI maintained proper surveillance, they tially different conclusions, Mr. Capps said, ficials at the Energy Department and the would have known that Dr. Lee was making 164 ‘‘One would expect two properly trained ex- FBI to clarify the matter.’’ these desperate attempts to get back into The subcommittee’s review of the matter aminers evaluating the same data to draw a the X-Division. Surely that would have been shows that Dr. Lee definitely did not pass similar, but not necessarily identical conclu- a clue that further investigation was nec- the December 23, 1998 exam. The best that sion. This was not the case when comparing essary. Had the case been handled properly, anyone other than the initial examiners has my evaluation with that of the Wackenhut FBI or DOE personnel could have done what been able to justify is an ‘‘inconclusive’’ or examiner. I cannot account for the dif- Dr. Lee eventually did—just walk into the X- ‘‘no opinion’’ rating. It is important that no ferences.’’ 159 Division and pick up the tapes. Instead of de- one has been able to substantiate the ‘‘no de- One possible explanation for the differing stroying them, as Dr. Lee says he did, gov- ception indicated’’ finding because any other opinions on the polygraph is that the ques- ernment officials could have properly se- result even a ‘‘no opinion’’—would have put tions were improperly structured, making cured these tapes containing the crown jew- the investigation on a completely different the entire test invalid because the control els of America’s nuclear secrets. questions and the relevant questions were track. Instead, the government quit looking In a December 24 meeting, Dr. Lee was told not sufficiently distinct to permit an accu- at Dr. Lee at the precise moment when it ‘‘that he was being transferred from X-Divi- rate differentiation of the responses to each. should have been looking most intently at sion to T-Division for thirty days to allow When Dr. Capps was asked about the appro- his activities. time for the FBI to complete their in- priateness of the questions, he faulted two of The Consequences of DOE’s Interference in quiry.’’ 167 If there had ever been any doubt in the comparison questions used in the exam the Investigation his mind as to whether he was under an FBI and said ‘‘these comparison questions were Ordinarily, the decision to polygraph an investigation, this comment from DOE re- not sufficiently distinct from the relevant individual or to remove his access to the moved that doubt. His conduct over the next

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00033 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S13806 CONGRESSIONAL RECORD — SENATE December 20, 2001 few days shows clearly that he was worried cious time to delete and secrete information. impending release of a story on the W–88 about the government’s sudden interest in The significance of Dr. Lee’s file deletions case by the New York Times, after which the him and the fact that his access to the X-Di- and the unreasonable delays in carrying out case was once again moved from the national vision had been removed. All told, Dr. Lee the investigation that should have detected security track onto the political track. Upon tried to get back into his X-Division office and prevented them should not be underesti- learning of the New York Times story, gov- almost twenty times between the December mated. As FBI Agent Robert Messemer has ernment officials asked that it be delayed for 23 polygraph and the February 10 exam. Had testified, the FBI came very close, ‘‘within several weeks, ‘‘saying they were preparing the FBI and DOE been watching, they might literally days, of having lost that mate- to confront their suspect.’’ 177 It is almost in- have wondered why Dr. Lee wanted to get rial.’’ 173 The FBI was almost unable to prove comprehensible that the FBI was still not back into the X-Division so desperately, and that Dr. Lee downloaded classified files. If ready, in March 1999, to interview Dr. Lee. they might have gone there to look. the material had been overwritten after it The same argument had been made in De- It should be noted that not all of the blame was deleted, ‘‘that deletion by Dr. Lee cember 1998 when the DOE wanted to poly- for the FBI’s lack of interest in Dr. Lee’s [would] have kept that forever from this in- graph Dr. Lee, so there is absolutely no rea- conduct after the polygraph can be placed on vestigation.’’ In this context, the repeated son that the necessary preparations could the incorrect interpretation of the polygraph delays, the lack of coordination between the not have been made in the interim. results. Even if one takes the position that FBI and the Department of Energy, and later The reporters did not know Dr. Lee’s iden- the FBI thought that Dr. Lee had passed the between the FBI and the Department of Jus- tity, but the FBI said they worried that he polygraph, there is no excuse for completely tice, are much more serious. might recognize himself from details in the article as if he was not already aware that dropping an investigation solely on the basis February 10, 1999 to March 8, 1999 of a passed polygraph, especially when DOE the FBI was investigating him after having and the case agents were told that during On February 10, 1999, Wen Ho Lee was been polygraphed and having his access to the pre-polygraph interview Dr. Lee had ad- again given a polygraph examination, this classified information suspended since De- mitted foreign contact that he had not pre- time by the FBI. During this second test, cember, having been interviewed by the FBI viously reported. The FBI should have con- which Lee failed, he was asked: ‘‘Have you in January, having been asked to take an- tinued the investigation on the basis of that ever given any of [a particular type of classi- other polygraph in February. revelation, regardless of the polygraph exam. fied computer code related to nuclear weap- The FBI interviewed Dr. Lee on March 5, A review of the transcript from the March 7, ons testing] to any unauthorized person?’’ and the New York Times published its story 1999 interview of Dr. Lee shows that the FBI and ‘‘Have you ever passed W–88 information the next day, ‘‘China Stole Nuclear secrets focused very heavily on that unreported con- to any unauthorized person?’’ 174 It should be for Bombs, U.S. Aides Say.’’ Prompted to tact. If it was worth investigating in March, noted that the 1997 FISA request mentioned move by the breaking story, the FBI inter- it should have been worth investigating the that the PRC was using certain computa- viewed Dr. Lee again on Sunday, March 7. It previous December. tional codes, which were later identified as was during this interview that one of the DOE’s answer as to why it failed to mon- something Lee had unique access to. 175 case agents, at the suggestion of Albu- itor Dr. Lee after the December 23, 1998 poly- Moreover, the computer code information querque SAC Kitchen, asked Dr. Lee if he graph is both baffling and informative. had been developed independently of the had heard of the Julius and Ethel Rosenberg, DOE’s Ed Curran said that ‘‘since the FBI DOE Administrative Inquiry which was sub- the couple who had been executed for pro- was conducting the investigation of Dr. Lee, sequently questioned by FBI and DOJ offi- viding nuclear secrets to the Soviet Union. it was responsible for determining the level cials. The reference to the Rosenberg case, after of monitoring necessary.’’ 168 All available After this second failed polygraph, there threats that Dr. Lee would lose his job, be evidence indicates that the impetus for the should have been no doubt that Dr. Lee was handcuffed and thrown in jail, was over the polygraph clearly came from within DOE, aware he was a suspect in an espionage in- top, creating the inference that the FBI was and that the FBI agreed to this at the insist- vestigation, and it is inconceivable that nei- trying to scare Dr. Lee into a confession. Ac- ence of DOE, yet DOE washed its hands of ther the FBI nor DOE personnel took the ru- cording to a transcript of the interview: any responsibility for determining whether dimentary steps of checking to see if he was ‘‘Do you know who the Rosenbergs are?’’ the polygraph provoked a response from Dr. engaging in any unusual computer activity. [the agent] asked. Lee. Consider also that the catalog of Dr. Again, this is not hindsight. The classified ‘‘I heard of them, yeah, I heard them men- Lee’s attempts to get back into the X-Divi- information to which Dr. Lee had access, and tion,’’ Dr. Lee said. sion was culled from information under which he had been asked about in the poly- ‘‘The Rosenbergs are the only people that DOE’s control, information that the FBI did graph, was located on the Los Alamos com- never cooperated with the federal govern- not have access to unless the DOE gave it to puter system. The failure of DOE and FBI of- ment in an espionage case,’’ she said. ‘‘You them. Under these circumstances, it is not ficials to promptly find out what was hap- know what happened to them? They electro- surprising that Dr. Lee’s attempts to get pening with Dr. Lee’s computer after he was cuted them, Wen Ho.’’178 back into the X-Division almost imme- deceptive on the code-related polygraph FBI Director Freeh later acknowledged diately after his access was pulled went un- question is inexplicable. As noted above, this that this reference to the Rosenbergs was in- detected until much later. The FBI says that failure afforded Dr. Lee yet another oppor- appropriate, but he denied that the FBI ever it did not learn of Dr. Lee’s attempts to re- tunity to erase files from both the unsecure attempted to coerce a confession from Dr. enter the X-Division until March 13, 2000.169 system and the unauthorized tapes he had Lee.179 The almost complete breakdown in the made. One day after the FBI’s confrontational surveillance of Dr. Lee had severe con- As should have been expected, Dr. Lee used interview, Dr. Lee was dismissed from Los sequences. As the FBI later learned, ‘‘within the time afforded him by the delays to delete Alamos. Former LANL Counterintelligence one hour of reactivation [of his computer ac- the classified information he had placed on chief Robert Vrooman, has suggested that count], he immediately deleted three files, the unclassified system, and to retrieve and the leaking of Dr. Lee’s name to the press including one which was named after the dispose of the now-missing tapes. According had an adverse impact not only on Dr. Lee graduate student who had worked for him in to press reports, Dr. Lee was allowed to re- but also on the integrity of the investigation 1997.’’ 170 In late January, he began erasing turn to the X-Division in January 1999 by an into how the Chinese obtained U.S. nuclear the classified files from the unsecure area of unwitting security office. On other occa- secrets,180 but the investigation was already the computer. After he was interviewed by sions, he walked in behind division employ- in deep trouble before Dr. Lee’s name be- the FBI on January 17, Dr. Lee ‘‘began a se- ees. In fact, he apparently managed to slip in came public. quence of massive file deletions . . .’’ 171 He though an open door just hours after he was Reopening the W–88 Investigation even called the help desk at the Los Alamos barred from X-Division.176 He also ap- Before turning to the criminal case against computer center to get instructions for de- proached two other T-Division employees Dr. Lee, it is appropriate to make a com- leting files. After he was interviewed and with a request to use their tape drive to de- ment about the status of the investigation polygraphed again on February 10, within lete classified data from two tapes (he no into the loss of the W–88 information, the two hours of the time he was told he had longer had access to the one that had been matter at the heart of the DOE’s AI and the failed the exam, he deleted even more files. installed in his X-Division computer since he FBI’s investigation from 1996 to 1999. The All told, Dr. Lee deleted files on January had been moved from that division in De- September 1999 decision by the FBI and the 20th, February 9th, 10th, 11th, 12th, and 17th. cember 1998). DOJ to expand the investigation of suspected When he called the help desk on January Nearly three weeks after the polygraph Chinese nuclear espionage 181 is puzzling, pri- 22nd, his question indicated that he did not failure, the FBI finally asked for and re- marily because it should have happened long know that the ‘‘delay’’ function of the com- ceived permission to search Lee’s office and ago. puter he was using would keep deleted files his office computer, whereupon they began In an October 1, 1999 letter, Attorney Gen- in the directory for some period of time. He to discover evidence of his unauthorized and eral Reno and FBI Director Freeh explained asked why, when he deleted files, were the unlawful computer activities. Even so, the the rationale for reopening the case: ones in parentheses not going away, and FBI did not immediately move to request a ‘‘Our decision to take this action in regard asked how to make them go away imme- search warrant. The three week delay, from to the investigation into the compromise of diately. He also asked, on February 16, how February 10 until the first week of March, is U.S. nuclear technology is the result of two to replace an entire file on a tape.172 inexplicable. separate inquiries. First, there were inves- Thus, the report that Dr. Lee had passed The long hiatus in moving the case forward tigative concerns raised by the FBI Albu- the December 23 polygraph gave Dr. Lee pre- seems to have been broken primarily by the querque field office that began to develop in

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00034 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S13807 November, 1998, regarding deficiencies in the DOE’s AI, nor the conclusions drawn from it begun as of January 3, 1999 . . .’’ and that DOE Administrative Inquiry. Second, after to be erroneous,’’ and stated there is a ‘‘com- ‘‘the FBI had not yet initiated an investiga- questions were raised by Senate Govern- pelling case made in the AI to warrant focus- tion’’ as of that date.193 Thus, the failure to mental Affairs Committee staff, we started ing on Los Alamos.’’ 186 reopen the investigation into the loss of W– to re-examine flawed analysis in the conclu- As a result of further inquiry, however, Mr. 88 design information much sooner, or to sions drawn in the DOE Administrative In- Gallagher now has reason to question the even initiate an investigation of the other quiry.’’182 conclusions of the AI. He cites an August 20, losses, simply continued that pattern of er- This letter is significant on several fronts. 1999, interview by FBI officials of one of the rors. First, it represents the beginning of a top scientists who participated in the technical The Prosecution of Dr. Lee level assault within DOJ and FBI on the AI portion of the AI, in which the scientist Two weeks 194 after Dr. Lee was fired from as an explanation for why the W–88 inves- ‘‘stated that he had expressed a dissenting LANL, investigators discovered a notebook tigation had been bungled. The reference to opinion with respect to the technical aspects in his X–Division office containing a one- concerns in the Albuquerque office in No- of the AI,’’ and points out that the state- page computer-generated document showing vember 1998 is misleading all—of the docu- ment of this scientist is ‘‘in direct conflict the files in the ‘‘kf1’’ directory Dr. Lee had ments coming out of Albuquerque in 1998 with the AI submitted to the FBI because created on the unclassified portion of com- were focused on getting FISA coverage on the AI does not reflect any dissension by the mon file system.195 When it was discovered Dr. Lee. The documents did contain ac- ‘DOE Nuclear Weapons Experts.’ ’’ 187 knowledgment that somewhere in the neigh- A General Accounting Office investigation that many of these files were highly classi- borhood of 250 personnel per year had access of Mr. Gallagher’s comments regarding the fied, the FBI began a criminal investigation to the W–88 information, which was more AI later concluded that his testimony had of Dr. Lee which led to his indictment, arrest than had been previously believed, but the been inaccurate and misleading because he and pretrial incarceration beginning on De- case agent nevertheless pressed for a FISA. had ample opportunity to know and should cember 10, 1999. Almost from the moment Dr. Lee was It is simply not accurate to portray the No- have known that documents created by the taken into custody, his attorneys protested vember 1998 documents as raising questions Albuquerque office of the FBI raised ques- the strict conditions of confinement and about the AI as a basis for investigating Dr. tions about the FBI in late 1998 and early worked to secure his release under some Lee. 1999.188 Subsequent documents from Albuquerque In his November 1999 letter, Mr. Gallagher combination of home detention and elec- did raise concerns about the AI. One of the could also have mentioned the draft of the tronic monitoring. Judge James Parker, who worst in this regard is the January 22, 1999 July 9, 1999 document prepared by the Albu- presided over much of the case, repeatedly memorandum which essentially clears Dr. querque division, ‘‘Changed: FBI–DOE Na- urged the government to relax the condi- Lee. It says: tional Laboratory Assessment. . . .’’ Had he tions of confinement, but the government ‘‘A review of the pertinent questions asked done so, he would have reported that: steadfastly argued against releasing Dr. Lee, in the [December 23, 1998] polygraph exam ‘‘Albuquerque is of the firm opinion that even under strict monitoring, until Sep- showed that Lee did not pass classified infor- the AI should have been used only for inves- tember 13, 2000. On that date, the govern- mation to a foreign intelligence service. The tigative assistance during the initial portion ment entered into a plea agreement with Dr. polygraph charts and other documentation of the ’Kindred Spirit’ inquiry, and that a Lee under which he would plead guilty to a relating to the examination were made more in-depth and comprehensive analysis of single felony count of mishandling govern- available to FBI AQ by DOE on 01/22/1999 the relevant issues/facts should have been ment secrets and go free immediately in ex- . . .’’183 continued through the course of the inves- change for a promise to explain what hap- In a section titled ‘‘SAC ANALYSIS’’ tigation.’’ 189 pened to the missing tapes. David Kitchen wrote that ‘‘based on FBI A subsequent draft of the same document FBI Director Louis Freeh issued a state- AQ’s investigation it does not appear that lists half a dozen reasons why the AI was ment on September 13, 2000, explaining the Lee is the individual responsible for pass- flawed. The document says that the espio- government’s decision to reach the plea ing the W–88 information.’’ At that point, nage could have been done by a network of agreement. In relevant part, the statement FBI–AQ had done remarkably little inves- sources, the travel analysis was incomplete, said: tigation. The lead case agent had requested a the strategic opinions were preliminary, ‘‘In this case, as has often happened in the FISA in November 1998, but had been over- there had been a disagreement over the ex- past, national security and criminal justice ruled. By December, the DOE jumped into tent of the W–88 information compromise, needs intersect. In some cases, prosecution the investigation in response to the Cox the Lees had been doing things at the behest must be foregone in favor of national secu- Committee hearings and gave Dr. Lee a poly- of the Government, and finally, ‘‘. . . the AI rity interests. In this case, both are served. graph. Based on nothing more than a sup- was extremely confusing and self contradic- ‘‘As the government indicated previously, posedly passed polygraph—the results of tory in reporting its conclusions . . .’’ 190 the indictment followed an extensive effort which Albuquerque received on the same day This is a classic case of too little too late, to locate any evidence that the missing it was writing the memo and could not and it raises questions as to whether the tapes were in fact destroyed, and repeated have—analyzed and an interview on January FBI’s assault on the AI was intended to get requests to Dr. Lee for specific information 17 (during which, according to Director an investigation back on track or to spread and proof establishing what did or did not Freeh, Dr. Lee provided new information the blame for a bungled investigation. happen to the nuclear weapons data on these about his relationships with Chinese sci- The delay by DOJ and the FBI until Sep- tapes. None was forthcoming. The indict- entists), the SAC Kitchen was prepared to tember 1999 is perplexing since five govern- ment followed substantial evidence that the shut down the investigation. This is nothing mental reports had concluded, with varying tapes were clandestinely made and removed short of outrageous. degrees of specificity, that the losses of clas- from Los Alamos but no evidence or assist- Was it mere coincidence that in his ‘‘Dr. sified information extended beyond W–88 de- ance that resolved the missing tape di- Lee’s not guilty memo’’ Kitchen took aim at sign information and beyond Los Alamos: lemma.... the AI, which contained the very allegations (1) the classified version of the Cox Report ‘‘The obligation that rests on the govern- that were the subject of testimony before the (January 1999); ment is first and foremost to determine Cox Committee? The January 22, 1999 memo (2) the April 21, 1999 damage assessment by where the classified nuclear weapons infor- does not even address the allegations, from Mr. Robert Walpole, the National Intel- mation went and if it was given to others or 1994, that Dr. Lee had helped the Chinese ligence Officer for Strategic and Nuclear destroyed. This simple agreement, in the with codes and software, yet Mr. Kitchen is Programs; 191 end, provides the opportunity of getting this prepared to shut down the investigation. (3) the unclassified version of the Cox Com- information where otherwise none may Any comments from Mr. Kitchen regarding mittee Report (May 25, 1999); exist.’’ 196 flaws in the Administrative Inquiry must be (4) the Special Report of the President’s But the sudden reversal of the govern- viewed in the context of the Albuquerque di- Foreign Intelligence Advisory Board (June ment’s position flabbergasted Judge Parker. vision’s bungling of the Kindred Spirit inves- 1999); and During the hearing to finalize the plea agree- tigation. (5) the Special Statement by Senators ment, he commented from the bench: Another significant result of the decision Thompson and Lieberman (August 5, 1999) ‘‘I would like to know why the government to reopen the W–88 investigation, and to do All of these reports gave FBI and DOJ argued so vehemently that Dr. Lee’s release so based on the supposedly faulty analysis in ample evidence that further investigation earlier would have been an extreme danger the AI, has been to put FBI Assistant Direc- was necessary. For example, the Cox Com- to the government when at this time he, tor Neil Gallagher on the spot based on his mittee report states flatly that ‘‘the PRC under the agreement, will be released with- testimony to Congress. In a November 10, stole classified information on every cur- out any restrictions.’’ 197 1999 letter on the question of why the inves- rently deployed U.S. inter-continental bal- At a later point in the hearing, the judge tigation was reopened, he acknowledged that listic missile (ICBM) and submarine- continued: when discussing the DOE’s Administrative launched ballistic missile (SLBM).192 ‘‘What I believe remains unanswered is the Inquiry (AI) during his June 9, 1999, testi- Tellingly, the Cox Committee notes that ‘‘a question: What was the government’s motive mony before the Governmental Affairs Com- Department of Energy investigation of the in insisting on your being jailed pretrial mittee,185 he stated that he ‘‘had full credi- loss of technical information about the other under extraordinarily onerous conditions of bility in the report,’’ had ‘‘found nothing in five U.S. thermonuclear warheads had not confinement until today, when the Executive

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00035 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S13808 CONGRESSIONAL RECORD — SENATE December 20, 2001 Branch agrees that you may be set free es- ernment leaks to the press about the case, March 9 to April 7 trip to Los Angeles. The sentially unrestricted? This makes no sense including statements that Dr. Lee had failed prosecutors also told Mr. Holscher of their to me.’’ 198 to cooperate with the government and had intent to issue a grand jury subpoena to Mrs. The judge was not alone in being puzzled failed a polygraph exam. Mr. Holscher point- Lee regarding the 1986 and 1988 trips to the by the government’s handling of the crimi- ed out that 28 CFR 50.2(b)(2) prohibits DOJ PRC, and any actions related to those nal phase of the case. It is difficult to rec- personnel from disclosing any information trips.212 oncile the lack of forceful action between that ‘‘may reasonably be expected to influ- On April 18, LANL provided two computer the time the government discovered, in June ence the outcome of a pending or future reports, one which outlined the deletion of 1999 at the latest, that the tapes had been trial.’’ 205 files by Dr. Lee from his open CFS direc- created, with its December 1999 claims that Mr. Holscher also sent a letter to FBI Di- tories in January and February, and another the only way to safeguard the secrets on the rector Louis Freeh on March 23, demanding describing the earlier transfer of these files tapes was to hold Dr. Lee virtually incom- an investigation into case-related leaks. In a from the closed to open CFS. A week later, municado. As will be discussed later in this clear reference to Dr. Lee’s assistance to the according to an FBI chronology, a technical report, the information on the tapes was ex- government in the 1980s, Mr. Holscher told expert assisting the FBI in the investigation tremely sensitive, but it does not necessarily Director Freeh that he had ‘‘refrained from said that the information Dr. Lee had follow that the pretrial confinement condi- explaining to the press the true facts con- downloaded would not be sufficient for a for- tions the government demanded represent cerning the Lee’s 1986 visit to China and fol- eign power to build or duplicate U.S. weap- the only way to protect that information. If low-up activities that are known to the ons, but that ‘‘the files would significantly it was the government’s judgement that pro- FBI,’’ and requested that Director Freeh re- enhance their program and save them years tecting the information required extraor- lease a statement showing that Dr. Lee had of research and testing.’’ 213 dinary restrictions on Dr. Lee, then why not cooperated with the government.206 On April 30, a LANL computer security ex- act as soon as the existence of the tapes was On March 26, a LANL scientist assisting pert informed the FBI of two incidents in- known? 199 Moreover, if the government was with the investigation told the FBI that the volving Dr. Lee which showed up in a review willing, in September 2000, to accept Dr. ‘‘kf1’’ directory had been in the open part of of the Network Anomaly Detection and In- Lee’s sworn statement as to the disposition the common file system (CFS), that the file trusion Recording system, one in 1993 and of the tapes (to be verified by polygraph ex- names in the directory suggested they were another in 1997.214 That Dr. Lee was flagged amination), why could it not have accepted a classified, and that the files had been deleted by this system in 1997, while he was under in- very similar offer from Mr. Holscher on De- from the CFS on February 11, 1999. The sci- vestigation, but the FBI only learned about cember 10, 1999, the date of Dr. Lee’s arrest? entist also told the FBI that Dr. Lee had it in April 1999 is simply inexplicable. The remainder of this report addresses the typed up and stored in a CFS directory let- On May 5, the FBI was informed by a government’s handling of: (1) the investiga- ters seeking employment overseas. LANL scientist that a notebook recovered tion of Dr. Lee from March–December 1999, After a telephone conversation between during the search of Dr. Lee’s residence con- (2) the pretrial confinement of Dr. Lee, and the two men, Mark Holscher wrote to Robert tained directions for transferring classified (3) the case against Dr. Lee. The subcommit- Gorence on March 29, saying that he under- files to a Sun Sparc computer workstation tee’s investigation supports the following stood from the conversation that Dr. Lee and from there onto portable DC6150 com- conclusions regarding these matters: (1) the was the subject of a grand jury investigation puter tape cartridges. On May 9, a LANL information on the tapes was highly sen- rather than a target.207 The difference is sig- computer official provided a report on how sitive and, if anything, the government nificant because being the target of an inves- the file transfers had been accomplished. should have acted sooner than it did to find tigation is more serious than merely being In response to suggestions from counsel for out what happened to them, (2) the govern- the subject of one. Mrs. Lee that she might claim marital com- ment overreached in demanding such oner- On March 30, a draft rule 41 search warrant munication privilege, spousal privilege or ous conditions of confinement prior to trial, affidavit for Dr. Lee’s home was presented to both, Mr. Kelly and another prosecutor, Ms. and (3) the plea agreement was an acceptable the U.S. Attorney’s Office (USAO) in New Paula Burnett, wrote to Mr. Brian Sun on resolution to the case, one that very likely Mexico. From April 1–8, personnel in Wash- May 5. The prosecutors laid out the areas of could have been had much sooner if the gov- ington and the USAO worked on an affidavit proposed questioning, to include: (1) bio- ernment had not backed itself into a corner for a search warrant. graphical information on Mrs. Lee, her hus- During this time the FBI was pursuing a with its aggressive tactics after December band and their children; (2) contacts the Lees dual track, and a key meeting took place on 1999. have with extended family, friends or busi- April 7 between the FBI and representatives ness contacts in the PRC and Taiwan; (3) co- The March–December 1999 Investigation 200 of the Office of Intelligence Policy and Re- operation with the FBI in the 1986–1988 pe- One day after Dr. Lee was fired, the Albu- view. Rather than moving quickly to dis- riod; and (4) her knowledge of Dr. Lee’s work querque Division of the FBI (FBI–AQ) met cover the extent of the potential damage, and any job related activity that he did at with the U.S. Attorney for the District of FBI and DOJ officials continued to wrangle home. Focusing on the Mrs. Lee’s assistance New Mexico, Mr. John J. Kelly. The fol- over whether the matter should be handled to the FBI, the prosecutors explained that: lowing day, Dr. Lee’s lawyer, Mr. Mark under FISA or was ‘‘way too criminal’’ for ‘‘Not only would we ask her the details of Holscher, wrote to the government offering that.208 OIPR attorneys raised their old con- what she was asked to do and what she did to surrender Dr. Lee’s passport and asking cerns about the currency and sufficiency of during the time of cooperation with the FBI, whether Dr. Lee was a target or a subject of the evidence against Lee, as well as new con- but also the extent to which her husband was investigation. In this letter, Mr. Holscher cerns about the appearance of improperly aware of those activities and participated in also advised the government that his client using FISA for criminal purposes and the them.’’ 215 intended to travel to Los Angeles for several prospect of conducting an unprecedented The next day, Mr. Sun responded in writ- days.201 overt FISA search.209 FBI officials indicated ing, saying that he had spoken to Mr. On March 11, the FBI learned that another that FBI Director Freeh was ‘‘prepared for- Holscher and felt it was appropriate for Mrs. LANL employee had been asked by Dr. Lee mally to supply the necessary certifications Lee to assert the marital communications to retrieve a box of documents from his X– that this search met the requirements of the privilege and the spousal privilege. He said, Division office.202 FISA statute—that is, that it was being however, that he might be willing to make After a telephone conversation between sought for purposes of intelligence collection an attorney proffer.216 Mr. Kelly and Mr. Holscher on March 15, Mr. (e.g., to learn about Lee’s alleged contacts On May 11, FBI–AQ prepared a Letterhead Holscher wrote on March 19 asking that the with Chinese intelligence).’’ 210 The draft Memorandum on the Lee case, which was fol- investigation of Dr. Lee be terminated, and FISA application the FBI prepared was never lowed on May 16 by a written status report requesting security clearances so that he formally presented to OIPR, in large part be- from USA Kelly to Deputy Attorney General could counsel Lee. In this letter, Mr. cause the criminal search warrant was Eric Holder and Attorney General Reno. Holscher also noted that at least six news- issued. The next day, May 17, a LANL computer papers had carried stories quoting unnamed On April 9, Attorney General Reno made official provided a report on potential move- FBI officials as saying that there was not the necessary certification for using FISA ment of files on Dr. Lee’s CFS directories enough information to indict, much less con- derived material 211 in a rule 41 search war- from LANL computers to outside computers. vict, Dr. Lee. Mr. Holscher described this in- rant, and Magistrate Judge William W. The U.S. Attorney presented a prosecution formation as Brady material, and said the Deaton issued the warrant later that same memorandum on May 27, and requested guid- government had no evidence that Dr. Lee day. The following day, April 10, Dr. Lee’s ance form DOJ because ‘‘the Atomic Energy had any intent to injure the United States, home was searched, and he provided written Act violation had never been prosecuted be- as would be required under the espionage consent to search his automobiles. fore.’’ He anticipated difficulty showing Lee statutes.203 In a letter to Mark Holscher dated April 16, intended to harm the U.S. as a necessary ele- On March 23, investigators discovered the Mr. Kelly and Mr. Gorence made one demand ment of the crime.217 The FBI, USAO, and ‘‘kf1’’ file listing, and reached a tentative and several requests. The two prosecutors Criminal Division met in Washington, DC, on conclusion that classified files had been demanded the return of any classified mate- the same day the prosecution memorandum maintained on the unclassified portion of the rial in Dr. Lee’s possession, and requested was presented, to discuss the case, and two LANL computer system. That same day, Mr. the names and addresses of the individuals days later FBI–AQ provided a written prose- Holscher wrote to Mr. Kelly protesting gov- with whom the Lees stayed during their cutive report to USAO.

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00036 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S13809 Mr. Holscher wrote on June 9, complaining Mr. Holscher wrote again on August 2, of- bring a massive, 59–count indictment against that the government had not yet advised fering to make additional factual submis- Lee using the Atomic Energy Act. Indeed, of- him what it wanted to discuss with Lee and sions, which prompted a response from Mr. ficials in Washington had decided to charge had not sought to schedule a meeting. Six Kelly on August 4, saying the government Lee with intent to injure U.S. national secu- days later, Mr. Kelly responded that the gov- would review anything Mr. Holscher sub- rity and (not ‘‘or’’) to aid a foreign adver- ernment was considering serious charges, mitted but wanted a complete explanation sary. but ruled out espionage charges under 18 from Dr. Lee himself. At the same time, Mr. ‘‘Crossing a final hurdle, Reno called a USC 794 (the most serious espionage charge), Kelly sent a letter to Eugene Habiger, Direc- meeting of senior national security officials and suggested a meeting for June 21. In the tor of DOE’s Office of Security and Emer- in the White House Situation Room on Dec. letter, Mr. Kelly said that he had postponed gency Operations, seeking to include in a 4, 1999, to explain how much classified infor- a previously scheduled meeting so the gov- proposed indictment of Dr. Lee information mation prosecutors were prepared to reveal ernment could complete its investigation. He about Dr. Lee’s downloading activity. in court. In addition to Reno, Kelly, Freeh, further explained to Mr. Holscher: After an August 9 telephone conversation and Richardson, those present included na- ‘‘I did so not to inconvenience your client, between counsel for Dr. Lee and Richard tional security adviser Samuel R. ‘‘Sandy’’ but rather to insure that the interview would Rossman, Chief of Staff of the Criminal Divi- Berger, CIA Director George J. Tenet and take place toward the conclusion of the in- sion, Mr. Holscher wrote a letter on August deputy defense secretary John J. Hamre. vestigation at a time when I would be able to 10 stating that Dr. Lee would not submit to ‘‘Robert D. Walpole, the national intel- provide meaningful information about poten- any additional interviews and offering fur- ligence officer for strategic and nuclear pro- tial charges and, in turn, your client would ther arguments why Dr. Lee had not violated grams, began the meeting with a formal as- be motivated to provide a more complete ex- 18 USC 793. sessment that the loss of the data planation for his potentially criminal con- On August 16, Criminal Division Chief of downloaded by Lee would be a serious blow duct. As I stated in our telephone conversa- Staff Rossman wrote to counsel for Dr. Lee to national security tion last night, that time has now come. advising that the government had not yet ‘‘The meeting ended after Reno offered her ‘‘You should know that I will be making a made a decision whether to charge Dr. Lee, assurance that prosecutors were prepared to charging decision in this matter before the and asking for additional information (which drop the case immediately if the judge were end of June and that the offense conduct had been discussed during the July meeting) to grant a motion, sure to come from the de- under consideration involves various actions fense, that the data downloaded by Lee had by August 30. 221 by your client over the last decade that col- Following a supplemental written presen- to be introduced, in full, in open court.’’ On December 7, the Department of Justice lectively have compromised some of our na- tation by Dr. Lee’s counsel on August 30, Mr. Oversight subcommittee sent letters request- tion’s most highly sensitive and closely Kelly wrote to Mr. Holscher on September 3 ing testimony in a closed hearing from nine guarded nuclear secrets.’’ 218 asking for information about the location FBI witnesses, including two of the case At the June 21 meeting, which was at- and custody of the tapes from the time of agents, FBI General Counsel Larry Parkin- tended by USAO, FBI and Criminal Division their creation until the present. son, Albuquerque Special Agent in Charge representatives, Dr. Lee’s counsel asserted On September 8, representatives of the David Kitchen, Assistant Director for Na- that he had only downloaded unclassified Criminal Division, USAO, LANL and DOE tional Security Neil Gallagher, and other data onto the unsecure computer and then met in Washington to discuss the handling of case supervisors and managers. The hearing, on to tapes. (When later confronted with evi- classified information in the prosecution of scheduled for December 14, was to explore dence that Dr. Lee had, in fact, downloaded Dr. Lee. All of the DOE and LANL represent- the circumstances of the December 23, 1998 classified data onto portable tapes, counsel atives concurred as to the significance of the polygraph and the relationship between the claimed that if Dr. Lee had done so, any such data at issue. By October 4, DOE had pre- government and the Lees. tapes had been destroyed.) The meeting was pared a draft classification guide governing On December 8, as required by statute, the followed by a written status report to the issues related to Dr. Lee’s illicit computer Attorney General sent letters to Energy Sec- DAG and the AG the following day. activity and the classified files involved. retary Richardson and USA Kelly approving In the interim, on June 15, the FBI learned On October 14, the Senate Judiciary Com- charges against Dr. Lee under the Atomic that Dr. Lee had asked a colleague to re- mittee approved a resolution authorizing Energy Act of 1954. That same day, Mr. Kelly trieve a box of materials that he had left in subpoenas relevant to the work of the De- spoke to Mr. Holscher by phone, telling him his X-Division office when he had been trans- partment of Justice Oversight sub- that indictment was imminent and asking ferred to the T-Division. The FBI was told committee, including the Wen Ho Lee mat- for information about the missing tapes. At that the colleague had retrieved the box for ter. (A second, broader resolution was au- some point in late 1999, prior to the indict- 220 Dr. Lee, but had taken the materials to thorized on November 17. ) ment, Mr. Kelly told Mr. Holscher that the LANL security, which had questions regard- On October 27, Assistant Attorney General case might be resolved without an indict- 219 ing some of the contents of the box. The James Robinson, Criminal Division, wrote a ment and advised Mr. Holscher to look at the FBI chronology does not mention when the memo to USA Kelly recommending that Dr. latter sections of 18 USC 793. colleague had retrieved the box or what Lee be prosecuted under the Atomic Energy Although Mr. Holscher faxed a letter at LANL security did about the contents. The Act of 1954. 8:24 a.m. (Pacific Time) on December 10, of- absence of details raises the inference that On November 3, the Department of Justice fering to make Dr. Lee available for a poly- the now-missing tapes could have been in the Oversight subcommittee held its first hear- graph by a mutually agreeable polygrapher box, and LANL security may have passed ing on the Wen Ho Lee case. Much of the tes- to verify that Dr. Lee did not mishandle the them back to Dr. Lee without knowing what timony focused on the failure of the FBI to tapes or provide them to a third party, Dr. was on them. The FBI has not answered this properly investigate, from 1995 to 1998, the Lee was indicted and arrested later that question. information it had related to Dr. Lee poten- same day. During the first week of July 1999, Dr. tially engaging in surreptitious electronic Also on December 10, FBI Director Freeh Lee’s lawyers made written presentations to communications. wrote to request that I ‘‘delay hearings on the Albuquerque USAO and the Criminal Di- The Lee case was discussed at an National any aspect of this investigation until the vision in Washington, each of which was de- Security Council meeting on November 11, conclusion of the current criminal pro- signed to dissuade the government from tak- with DOE, DOJ and LANL representatives in ceedings resulting from the indictment ing action against Dr. Lee. attendance. handed down today.’’ 223 In explaining why it On July 15, a LANL scientist provided a re- On November 15, a LANL scientist wrote a was necessary to delay subcommittee hear- port on the creation of Tape N, which was ‘‘Draft of Input to Damage Assessment’’ re- ings, Director Freeh said: downloaded directly to tape in 1997. It was garding the case, which was faxed to USA ‘‘In my view, the potential that your hear- also during July that the government Kelly on November 15. At the request of the ings could inadvertently interfere with the learned that one of the six tapes which had NSC, the CIA prepared a damage assessment prosecution is substantial. Subcommittee been recovered from Dr. Lee’s T-Division of- regarding the material on the missing tapes hearings at this time risk impacting upon fice contained a classified file, and that two on November 24. the Government’s ability to successfully others contained deleted classified files. The case was briefed at the White House on prosecute Mr. Lee by creating issues that LANL computer officials advised the govern- December 4. A September 24, 2000 Wash- may not presently exist. Moreover, it is crit- ment that one tape had been cleansed of ington Post article by Walter Pincus and ical for our national security that we have classified data in February 1999, on the unse- David A. Vise described the events leading every opportunity to learn as much as we cure computer workstation belonging to a T- up to and the discussion at the December 4 can from Wen Ho Lee in a carefully control- Division colleague of Dr. Lee. meeting as follows: lable setting. Given the gravity of the allega- Three days after a meeting in Washington ‘‘The decision to prosecute Lee was made tions and charges, and the potential opportu- between the USAO and the Criminal Divi- at a meeting in [Attorney General] Reno’s nities that could be lost by hearings, I re- sion, Mr. Holscher sent a letter to the gov- conference room shortly before Thanks- spectfully ask that you not go forward at ernment explaining that Dr. Lee had not vio- giving. Despite lingering question’s about this time. I hope you will agree that to do lated the Atomic Energy Act of 1954. The let- Lee’s motives, according to participants, otherwise poses a substantial risk not only ter was followed one day later, on July 27, by there was unanimity among the federal pros- to the prosecution but to the Government’s a meeting in Washington between counsel for ecutors from New Mexico and their superiors ultimate ability to discover the full extent Dr. Lee and the Criminal Division. in Washington that the government should of the damage done.’’ 224

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00037 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S13810 CONGRESSIONAL RECORD — SENATE December 20, 2001 When Director Freeh met with Senator The Pretrial Confinement of Dr. Lee secure to the unsecure computing environ- Torricelli and me on December 14, he made After his arrest on December 10, 1999, and ment. These facts evidence an intent to in- the same arguments. The subcommittee a detention hearing before U.S. Magistrate jure the United States by depriving it of ex- agreed to withhold hearings until the case Judge Don Svet on December 13, 1999, Dr. Lee clusive control of its most sensitive nuclear was resolved, which occurred on September was placed in pretrial confinement in the secrets.’’ 234 13, 2000, with the acceptance of the plea Santa Fe County Correctional Facility. The The government also argued that the only agreement. conditions of his incarceration, including the way to safeguard the information on the With the inexplicable exception of never Special Administrative Measures (SAM) tapes Dr. Lee created was to hold him in de- seeking electronic surveillance on Dr. Lee, taken to prevent him from possibly commu- tention, with special restrictions on his com- munications. As described in the govern- the chronology presented here shows a thor- nicating to others about the location of the ment’s motion on December 23, these meas- ough and methodical investigation. The dis- tapes or the material thereon, have received ures included segregation from other pris- covery that Dr. Lee had created his own a great deal of attention from Dr. Lee’s at- oners; limiting his visitors to immediate portable nuclear weapons data library must, torneys, the press, and eventually, Congress. in large measure, be credited to the extraor- family members and his attorneys, having an The government’s decision to hold Dr. Lee FBI agent monitor all family visitations, de- dinary level of effort and skill on the part of under such strict conditions raises a number the investigators from the FBI and the DOE. nial of access to a phone except to call his of important points. Defendants are pre- attorneys, and mail screening.235 In Senate testimony, Director Freeh said sumptively entitled to pretrial release ex- After the required hearings, Judge Parker that the investigation had required the cept in certain circumstances specified in issued his order on December 30, 1999, in ‘‘interview of over 1,000 witnesses, review of statute. Because none of the ordinary condi- which he concluded that ‘‘at this time there 20,000 pages of documents in English and Chi- tions for pretrial confinement—for example, is no condition or combination of conditions nese, and the forensic examination of more when a violent criminal is captured after a of pretrial release that will reasonably as- than 1,000 gigabytes containing more than killing spree—applied to Dr. Lee, Judge sure the appearance of Dr. Lee as required 225 one million computer files . . .’’ Any as- Parker explained in his order that: and the safety of any other person, the com- sessment of the investigation must acknowl- ‘‘Only after a hearing and a finding that munity, and the nation.’’ 236 He then ad- edge the vast amount of work involved in ‘‘no condition or combination of conditions dressed the nature of the alleged crimes, the discovering Dr. Lee’s illegal computer activ- will reasonably assure the appearance’’ of weight of the evidence, and the characteris- ity after he tried so diligently to erase any the defendant and the safety of the commu- tics of the defendant. Judge Parker noted traces of what he had done. In this regard, nity, can a judge order a defendant’s pretrial that while the offenses charged fell short of the government personnel should be com- detention. 18 USC 3142(e). A finding against espionage, they were ‘‘quite serious and of mended. release must be ‘‘supported by clear and con- grave concern to national security.’’ 237 The There are, however, two areas for con- vincing evidence.’’ 18 USC 3142(f).’’ 231 judge also described the surreptitiousness cern 226 related to the conduct of the March– In reaching a decision on pretrial deten- with which the tapes had been created, cit- December 1999 investigation. The first is the tion, the judge was required to take into ac- ing the government’s contention that Dr. delay from the time the existence of the count the available information regarding: Lee had misled a T-Division employee by tapes was known, which occurred at the lat- (1) the nature and circumstances of the of- claiming to want to download a resume to est in June, and the time Dr. Lee was in- fense charged, (2) the weight of the evidence tape.238 In addressing the weight of the evi- dicted in December. The chronology provided against the person, and (3) the history and dence against Dr. Lee, Judge Parker noted by the Department of Justice shows con- characteristics of the person.232 that the government had presented direct tinuing activity on the part of the govern- At a series of detention hearings from De- evidence of the downloads, which was the ment, and multiple contacts with Dr. Lee’s cember 13 through December 29, before two relevant conduct at issue. With regard to the attorneys seeking information about the fate different magistrates, the government paint- intent to injure, which was also an element of the tapes, but nothing commensurate with ed a stark picture of Dr. Lee’s conduct. A De- of the charged offenses, he noted that: its subsequent declarations in court that the cember 23, 1999 filing by Mr. Gorence summa- ‘‘although the Government did not present only way to keep the information from fall- rized the government’s position: any direct evidence regarding Dr. Lee’s in- ing into the wrong hands, where it could ‘‘Lee stole America’s nuclear secrets suffi- tent to harm the United States or to advan- change the global strategic balance, was to cient to build a functional thermonuclear tage a foreign nation . . . the Government hold Dr. Lee in very strict pretrial confine- weapon. Lee absconded with that informa- did present circumstantial evidence of Dr. ment. In responding to a question about this tion on computer tapes, seven of which are Lee’s intent to violate these provisions of delay, Director Freeh testified, ‘‘This was an still missing. Those missing tapes, in the the Atomic Energy Act and the Espionage extremely complex investigation and prose- hands of an unauthorized possessor, pose a Act.’’ 239 cutive process. It could not have been mortal danger to every American. The gov- With regard to the characteristics of the brought, in my view, fairly and accurately ernment does not know what Lee did with defendant, Judge Parker made points on before it was.’’ 227 the tapes after he surreptitiously created both sides, noting that Dr. Lee had ‘‘lied to The second great concern is that the FBI them. Despite previous denials, Lee now ad- LANL employees and to law enforcement agents and has consciously deceived them did not seek electronic surveillance of Dr. mits that he created the tapes—tapes which about the classified material that he had put Lee during this period.228 In view of the gov- the government will establish contain an en- on the tapes and about contacts with foreign ernment’s later pleadings that Dr. Lee could, tire thermonuclear weapon design capa- scientists and officials.’’ 240 On the other in effect, upset the global strategic balance bility. The risk to U.S. national security is hand, the judge noted Dr. Lee’s longstanding merely by saying something as seemingly in- so great if Lee were to communicate the ex- ties to the community, and said, ‘‘Aside from nocuous as ‘‘Uncle Wen says hello,’’ it is dif- istence, whereabouts, or facilitate the use of Dr. Lee’s deceptive behavior regarding the ficult to comprehend why the government the tapes that there is no condition or com- issues raised in this case, his past conduct never sought electronic surveillance in an ef- bination of conditions that will reasonably appears to have been lawful and without re- fort to discover the whereabouts of the miss- assure the safety of this country if Lee is re- proach.’’ 241 And, finally, the judge concluded ing tapes. In the December 1999 detention 233 leased.’’ that the government had presented ‘‘credible hearings, the U.S. Attorney, John Kelly, sug- The Atomic Energy counts with which Dr. evidence showing that the possession of in- gested that if Dr. Lee still had the tapes, he Lee had been charged required that the con- formation by other nations or by organiza- could send a signal to a foreign intelligence duct at issue be done with intent to injure tions or individuals could result in dev- service to extract him. If he wasn’t in cus- the United states. On this score, the govern- astating consequences to the United States’ tody ‘‘then we would be dealing with a situa- ment argued that: nuclear weapon program and anti-ballistic tion in which an individual not in custody is ‘‘Lee’s secretive and surreptitious actions nuclear defense system.’’ 242 going to be snatched and taken out of the to gather the classified TAR files, to down- In concluding, the judge stated: country.’’ 229 As early as April 30, 1999, the partition and download the files on to tapes, ‘‘With a great deal of concern about the FBI had been told by a LANL scientist that to lie to colleagues to facilitate his actions, conditions under which Dr. Lee is presently if the files Dr. Lee downloaded were given to and then his subsequent deletions to cover being held in custody, which is in solitary a foreign power, they would have the ‘‘whole his tracks all evidence an intent to injure confinement all but one hour a week when he farm,’’ the ‘‘crown jewels’’ of the U.S. pro- the United States. Lee’s intent to injure the is permitted to visit his family, the court gram which had been obtained through dec- United States also can be inferred by the ad- finds, based on the record before it, that the ades of effort by the U.S.230 ditional testimony that the government will Government has shown by clear and con- If the government felt his communications present to this Court that Lee, in taking vincing evidence that there is no combina- were such a potential threat, why was there complete thermonuclear weapon design ca- tion of conditions of release that would rea- never an effort to ascertain with whom and pability, stole information that was not in sonably assure the safety of any person and about what he was communicating during any way related to his duties as a the community or the nation. The danger is the March–December 1999 period? This lapse hydrodynamicist. The United States also presented primarily by the seven missing severely undercuts the government’s later will offer additional testimony that there tapes, the lack of an explanation by Dr. Lee arguments that the harsh conditions of con- was no work related reason to ever move the or his counsel regarding how, when, where, finement were only to protect the classified information that Lee moved and and under what circumstances they were de- downloaded information. downloaded on to computer tapes from the stroyed, and the potentially catastrophic

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00038 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S13811 harm that could result from Dr. Lee being have barred his family from visiting him for player in his cell and to receive access to able, while on pretrial release, to commu- more than one hour a week. In addition, the newspapers, and (3) a daily shower.251 nicate with unauthorized persons about the agents have demanded that my client and his A January 12, 2000 memorandum to the At- location of the tapes or their contents if wife speak only English and do so in the torney General from Principal Associate they are already possessed by others. Al- presence of a federal agent. Deputy Attorney General Gary Grindler though Dr. Lee’s motion to revoke Mag- ‘‘Please provide me immediately with a demonstrates that at least some of the con- istrate Judge Svet’s detention order is de- written description of the conditions that cerns of Dr. Lee’s lawyers were taken to the nied at this time, changed circumstances you have placed on Dr. Lee’s imprisonment, highest reaches of the Justice Department. might justify Dr. Lee renewing his request and a statement of the legal authority for The memo notes that the Attorney General for release. If, for instance, Dr. Lee submits these draconian conditions.’’ 248 had ‘‘advised that some individuals have ex- to a polygraph examination...and the re- The legal authority to which Mr. Holscher pressed concern about Dr. Lee’s access to ex- sults of the exam allay concerns about the referred was at that time still being assem- ercise,’’ and explains that the order for Spe- seven missing tapes, Dr. Lee’s request for bled. Title 28 of the Code of Federal Regula- cial Administrative Measures that she was pretrial release can be reconsidered in a sig- tions, section 501.2, provides that upon direc- being asked to sign ‘‘does not limit Dr. Lee’s nificantly different light.’’ 243 tion of the Attorney General, special admin- access to exercise. According to the Santa Fe The judge’s final statement before denying istrative measures may be implemented that County Jail rules, Dr. Lee will be limited to Dr. Lee’s motion for pretrial release was an are reasonably necessary to prevent disclo- one-hour per day of exercise, as are all ad- admonishment to the government ‘‘to ex- sure of classified information, upon written ministrative segregation prisoners.’’ 252 plore ways to loosen the severe restrictions certification...by the head of a member On January 13, 2000, the Attorney General currently imposed upon Dr. Lee while pre- agency of the United States intelligence formally authorized the special administra- serving the security of sensitive informa- community that the unauthorized disclosure tive measures for a period of 120 days in a tion.’’ 244 of classified information would pose a threat memorandum to John W. Marshall, the Di- Having lost the initial fight for pretrial re- rector of the Marshals Service. The condi- lease, Dr. Lee returned to jail where the con- to the national security and that there is a danger that the inmate will disclose such in- tions of confinement were as previously de- ditions of his confinement became a rallying scribed. It should be noted, however, that point for his defenders. The following ex- formation. Energy Secretary Bill Richardson sent a letter to the Attorney General on De- from December 10, 1999 until the date the At- cerpt is taken from an Internet site estab- torney General signed the order on January lished and maintained by Dr. Lee’s sup- cember 27, 1999, in which he said: ‘‘In my judgment, such a certification is 13, 2000, any special conditions of confine- porters: ment imposed on Dr. Lee would have been ‘‘He was arrested on December 10, 1999 and warranted to enable the Department of Jus- without proper authority. If federal regula- is now put in solitary confinement in a cell tice to take whatever steps are reasonably tions require certifications from agency in a New Mexico jail 23 hours a day. He is al- available to it to preclude Mr. Lee, during heads and the Attorney General, it can only lowed only one hour of visit a week from his the period of his pretrial confinement, any immediate family. He is shackled any time opportunity to communicate, directly or be presumed that restrictions such as those he is out of his cell, at his waist, his ankle through other means, the extremely sen- imposed on Dr. Lee would not be properly and his wrist except when he is meeting with sitive nuclear weapons data that the indict- authorized until all the certifications were his lawyers (and even then he must wear an ment alleges Mr. Lee surreptitiously di- in place. It is troubling that the government ankle chain). A chain around his belly con- verted to his own possession from Los Ala- was not better prepared to make the nec- necting to his handcuff prevents him from mos National Laboratory (LANL). I make essary certifications in a timely fashion. As the end of the initial 120 days ap- raising his hand above his head. We were told this certification at the request of the U.S. proached, the Attorney General received a that two U.S. Marshals with machine guns Attorney for the District of New Mexico, accompanied him whenever he goes within John Kelly, and upon the recommendations new letter from Secretary Richardson on the confine of the prison and a ‘chase car’ and evaluations of the Director of the Fed- May 4, in which he expressed his support for with armed Marshals follows Dr. Lee when eral Bureau of Investigation and DOE’s Di- continuing the SAM. However, he mentioned he is moved from Santa Fe to Albuquerque rector of Security and Emergency Oper- the conditions of Dr. Lee’s pretrial confine- and back. This is highly unusual and we ations, Eugene Habiger.’’ 249 ment, saying: ‘‘At the same time, I want to emphasize questioned that other prisoners received the By January 6, the Department of Justice my concern, that to the extent consistent same treatment. The lawyer said Lee was had reviewed the administrative segregation with protecting the sensitive weapons infor- kept separate from other prisoners during procedures at the Santa Fe County Correc- his hour-long exercise period. He is finally tional Facility and determined with some mation to which the indictment of Dr. Lee allowed to speak Mandarin with his family additional measures, the standard segrega- pertains, Dr. Lee’s civil rights as a pre-trial but with two FBI agents listening in. We tion policy would adequately confine Dr. detainee should be honored. I understand were told by his families that Dr. Lee was al- Lee. In a letter to Warden Lawrence that, in response to a request by Dr. Lee’s ways in shackles and chain even during their Barreras, the local U.S. Marshal, John San- counsel, the Department of Justice has ar- one hour weekly meeting. We were also told chez described ten additional measures that ranged for a translator to be present when he that the food provided by the prison system were necessary: speaks with his family so that he can speak was inappropriate to Dr. Lee because he has 1. Mr. Lee is to be kept in segregation until Chinese. I further understand that arrange- long adopted to live on a non red meat diet further notice (single cell). ments have been made to permit him to visit after his colon cancer surgery several years 2. Mr. Lee is not to have contact with with his family on weekends, to have access ago.’’ 245 other inmates at anytime. to Los Alamos National Laboratory with his The government, however, portrayed Dr. 3. All outgoing mail EXCEPT LEGAL lawyers under appropriate safeguards so that Lee’s conditions of confinement as a matter MAIL will be screened by the FBI. he can prepare his defense, and to have ac- of necessity to protect the classified infor- 4. Mr. Lee will not be permitted personal cess to a radio and reading material of his mation he had downloaded to portable tapes. telephone calls. choice, as well as a reasonable period of exer- In a series of memoranda written by Law- 5. Mr. Lee will be allowed to place collect cise every day. Finally, I understand that rence Barreras, Senior Warden of the Santa telephone calls to attorneys of record [Mr. the conditions of his confinement are in no Fe County Correctional Facility, on Decem- John Cline and Mr. Mark Holscher]. respect more restrictive than those of others ber 10 and 14, 1999, and January 4, 2000, the 6. Mr. Lee will be allowed contact visits in the segregation unit of the detention fa- terms of Dr. Lee’s confinement were outlined with his attorneys only. cility, where he is confined specifically to in detail. Specifically, Dr. Lee’s confinement 7. Mr. Lee will be allowed non-contact vis- protect against further compromise of classi- consisted of 24 hour supervision by a rota- its with immediate family members.... fied information. Based on this information, tion of guards, permission to speak only with The FBI must be on site to monitor each I am satisfied that his civil rights are being his attorneys and immediate family mem- visit. Visits will not be allowed unless an adequately protected.’’ 254 bers (his wife, daughter and son) and in FBI agent is present. At about the same time the FBI SAC in Al- English only, non-contact visits from his im- 8. Visitors are to be restricted to Attorneys buquerque, David Kitchen, wrote to the new mediate family members limited to one hour of Record and immediate family. U.S. Attorney in New Mexico, Norman Bay, per week, no personal phone calls, and that 9. Any changes to Mr. Lee’s conditions of and expressed his unequivocal support for he remain secured in his cell 24 hours a confinement will be authorized by USMS maintaining the SAM in place. Agent Kitch- day.246 Further, Dr. Lee was to remain in full [U.S. Marshals Service] personnel only. en expressed his ‘‘firm conviction that any restraints (leg and hand irons) anytime he 10. Mr. Lee is NOT TO BE REMOVED loosening of the SAM would enable Dr. Lee was to be out of his cell being moved from FROM THE FACILITY BY ANYONE UN- to communicate with an agent of a foreign one location to another.247 LESS AUTHORIZED BY THE USMS.250 power regarding the disposition or usage of As previously noted, Dr. Lee’s lawyers pro- That same day, another of Dr. Lee’s attor- the materials contained in the seven missing tested his conditions of confinement almost neys, Mr. John Cline, wrote to Mr. Gorence tapes.’’ 255 from the beginning. In a December 21, 1999 expressing the view that the conditions of In July, the new lead prosecutor on the letter to Mr. Kelly and Mr. Gorence, lead de- confinement were unlawful. He requested case, George Stamboulidis, arranged to have fense attorney Mark Holscher said: three specific changes, including: (1) two restraints removed from Dr. Lee during his ‘‘Apparently at the request of the Depart- hours outdoors every day, (2) permission for scheduled recreation times,256 but this did ment of Justice and the FBI, Dr. Lee’s jailers Dr. Lee to have a television, radio, and a CD not occur without some difficulty.257

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00039 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S13812 CONGRESSIONAL RECORD — SENATE December 20, 2001 An August 1, 2000 letter from Warden high profile nature of this case, I felt it was the whereabouts of the tapes to a third party Barreras to Mr. Stamboulidis describes the necessary to either confirm or disprove the in the period prior to his arrest, what made final state of Dr. Lee’s confinement: allegations. Mr. Lee was very surprised the government believe he would do so from ‘‘In response to your letter date July 30th, about the calls and stated, ‘I haven’t com- jail? None of the documents, testimony or 2000 inmate Wen Ho Lee began recreating plained to anyone about the jail because I other information available to the sub- without restraints on July 18th, 2000 at 8:30 am being treated very well.’ ’’ 262 committee provides a compelling answer to a.m. As of August 5th, 2000 he is also allowed Realizing that the hearings had not pro- this question. While the government may participation in the recreation yard 7-days a vided all the necessary information on the have believed such harsh conditions were week for a period of 1-hour per day. confinement issue, the DOJ later provided necessary, they have not made a convincing ‘‘In reply to inmate Wen Ho Lee’s housing several hundred pages of relevant docu- case. Judge Parker was not convinced by the conditions: inmate Wen Ho Lee is permitted ments. Much of the discussion above has government’s arguments, and granted Dr. to have a radio in his cell, this gives him the been drawn from these documents. The De- Lee’s renewed motion for pretrial release on ability to listen to news programs; he re- partment also sent a letter, dated January August 24, 2001. In his remarks at the plea ceives reading materials per the SAM guide- 20, 2001, which provided additional detail on hearing, Judge Parker expressed his senti- lines. the matter. Assistant Attorney General Rob- ments, telling Dr. Lee that ‘‘since by the ‘‘In addition, an exception to the rule was ert Raben explained that the manner in terms of the plea agreement that frees you made to grant inmate Wen Ho Lee visits on which Dr. Lee had been treated flowed ‘‘di- today without conditions, it becomes clear Saturdays as opposed to the regular Friday rectly from a policy that sets bright line that the Executive Branch now concedes, or schedule: this was done in order to accommo- rules that apply to all prisoners under de- should concede, that it was not necessary to date his family. Supervisors are the only fined circumstances. These bright line rules confine you last December or at any time be- staff that are assigned to oversee his escort are, in the Department’s view, better than fore your trial.’’ 266 and visit. Inmate Wen Ho Lee also receives an alternative that would require detention The Case Against Dr. Lee 258 facility personnel to make ad hoc decisions extra fruit at dinnertime, daily.’’ Had the government not reached a plea On September 7, 2000, U.S. Attorney Nor- in each individual prisoner’s case. A rule al- agreement with Dr. Lee, the case was sched- man Bay requested that the Attorney Gen- lowing such discretion would invite both fa- uled for trial in late November 2000. When 263 eral continue the SAM, which had last been voritism and abuse.’’ Mr. Raben went on the government settled, many questioned extended on May 12. In his letter, he outlined to explain that, because there is no federal the appropriateness of the plea agreement recent developments in the case, including detention facility in New Mexico, Dr. Lee because it seemed to be in such stark con- Judge Parker’s order granting Dr. Lee’s re- had been housed at the Santa Fe County De- trast with what the government had argued newed motion for pretrial release on August tention Facility, under its administrative all along. To ascertain whether the plea 24. Mr. Bay informed the Attorney General segregation policies, with the additional con- agreement was appropriate, it is first nec- of the government’s motion to stay the re- dition that he be allowed no unmonitored essary to examine the government’s case. quest of that order, and noted that the Tenth communications. According to Mr. Raben: Although the government would likely Circuit had stayed Judge Parker’s order ‘‘While housed in the Santa Fe County De- have won a conviction because many ele- pending further review. Mr. Bay concluded tention Facility, Dr. Lee was subject to all ments of the charged conduct were not dis- his request to the Attorney General by not- of that facility’s other regulations for all puted Dr. Lee could not credibly deny that ing that ‘‘nothing has changed since the spe- prisoners in administrative segregation in he had made the tapes containing vast quan- cial administrative measures were first im- addition to the ban on unmonitored commu- tities of classified nuclear weapons data this posed to reduce the risk of Lee disclosing nications. One of those requirements is that would not have been an easy case. The gov- highly sensitive classified information to an prisoners in administrative segregation must ernment faced a number of obstacles, includ- unauthorized possessor,’’ and requested an- be in ‘‘full restraints’’ (handcuffs, waist ing: (1) challenges to the government’s other 120 days of SAM.259 chains, and leg irons) whenever they are out- claims about the importance of the material Before the Attorney General acted on the side of their cells within the facility, includ- on the missing tapes, (2) threats by Dr. Lee’s request, the government reached a plea ing during exercise periods. Dr. Lee was not attorney to take the government on a ‘‘long, agreement with Dr. Lee, which ended his in restraints while in his cell. In July 2000, slow death march under CIPA,’’ (3) claims confinement. after the issues was raised by Dr. Lee’s at- that Dr. Lee was the victim of selective pros- After the plea agreement, the conditions of torneys, the restraints policy was modified ecution based on racial profiling, and (4) the Dr. Lee’s confinement were widely discussed uniquely for Dr. Lee so that he, unlike oth- issue of Dr. and Mrs. Lee’s assistance to the in a way that they had not been discussed be- ers in administrative segregation could exer- government during the 1980s. None of these fore, with new allegations that a light had cise without restraints.’’ 264 obstacles would have been unsurmountable. been left on his cell 24-hours a day, and that Mr. Raben further explained that Dr. Lee Each is discussed below. he had been kept in shackles an inordinate was transported for all court appearances The Importance of the Missing Tapes amount of time. During a series of three and meetings with his attorneys by the U.S. As previously noted, government witnesses hearings in late September and early Octo- Marshals, under standard procedures, which testified at Dr. Lee’s bail hearing that the ber 2000, Department of Justice witnesses included ‘‘full restraints’’ during transport, information on the tapes was the ‘‘crown were asked about the conditions of deten- and at all times except when Dr. Lee was in jewels’’ of our nuclear secrets that could, in tion. Attorney General Reno made the point a holding area cell administered by the Mar- the wrong hands, change the global strategic that Dr. Lee’s lawyers had not previously shals Service and when he was meeting with balance. When Dr. Lee’s lawyers renewed complained about the leg-restraints and that his attorneys. During such meetings, the leg their motion for pretrial release in July 2000, no one had ever mentioned the light be- irons remained on, but Mr. Raben said that they made a direct assault on this claim. fore.260 Mr. Bay explained that the light in Dr. Lee’s attorneys had never objected to The defense offered depositions from Dr. Har- question was ‘‘a dull blue light, kind of like that procedure.265 old Agnew, former Director of LANL, and Dr. a night light, in Dr. Lee’s room . . . [used] to After reviewing the documents and testi- Walter Goad, a Fellow Emeritus at LANL, make sure that if someone walked by and mony on the conditions of Dr. Lee’s pretrial both of whom took issue with the govern- looked inside his cell that they could make confinement, it is clear that the reasonable- ment’s characterization of the material on sure that he was there and that he was doing ness of the government’s actions turns on the tapes. Dr. Lee’s lawyers also noted that okay.’’ 261 the question of whether or not it was really the information in question was not classi- The Attorney General also read into the necessary to restrict his ability to commu- fied at the highest level—Top Secret—and record a memorandum from Raymond L. nicate. The government was convinced that had, in fact, been placed in a special cat- Cisneros, the local sheriff in Santa Fe who the only way to protect the national secu- egory called ‘‘Protect as Restricted Data’’ or served as the jail monitor. The memo- rity was to prevent Dr. Lee from commu- PARD when Dr. Lee downloaded it. randum, dated March 10, 2000, was to the nicating. Having taken that position, the re- When Judge Parker held three days of county manager and explained that Mr. mainder of the government’s actions were hearings in August 2000 to consider Dr. Lee’s Cisneros had met with Dr. Lee after receiv- simply to further the objective of limiting renewed motion for pretrial release, he got ing phone calls from unknown persons claim- Dr. Lee’s ability to communicate. Although testimony from Dr. John Richter that the ing that Dr. Lee was not being treated well. some of the government’s responses were not information on the tapes was 99% unclassi- According to the memo: as prompt as one might like—for example, fied.267 The government was also forced to ‘‘Other than being incarcerated, he had no taking more than a month to get the initial acknowledge that the information in ques- complaints. The staff was treating him very SAM guidelines signed by the Attorney Gen- tion was classified as Secret Restricted Data well. He singled out Warden Barreras and eral—the government seems to have been (SRD) rather than Top Secret Restricted Deputy Warden Romero as treating him generally responsive to requests from Dr. Data (TSRD), and could therefore be sent great.... His only request was for addi- Lee’s attorneys. through certified or registered mail, as dem- tional fruit at the evening meal, which I re- That is not to say that the government’s onstrated in the following excerpt from the layed to Warden Barreras. actions were appropriate, however, because hearing on August 17: ‘‘I gave him my business card and told him the government has not made a showing as Mr. CLINE: SRD, unlike TSRD, can be, for to contact me through his attorney if there to why it was necessary to hold Dr. Lee example, double wrapped and sent by reg- was any mistreatment of other issues regard- under such strict terms of confinement in istered mail from one classified location to ing his incarceration.... Because of the the first place. If he had not communicated another, can it not?

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Dr. ROBINSON: That is true today, yes. input deck is an ‘electronic blueprint’ of ei- tion, 277 but ultimately took the position Mr. CLINE: And TSRD can not be sent by ther a primary or a secondary within a nu- that the loss of the information on the tapes mail? clear weapon. would be ‘‘marginally harmful, at worst.’’ 278 Dr. ROBINSON: That is correct. ‘‘. . . [Dr.] Lee down-partitioned and In evaluating Dr. Richter’s opinion on the Mr. CLINE: .... the information that we downloaded all of LANL’s significant nuclear value of the information on the tapes, it is are talking about here, which has been de- weapon primary and secondary design codes helpful to consider that ‘‘in 1995, he was the scribed as the crown jewels, could be double in their entirety. . . . In addition, Lee down- first to suggest that the Chinese might have wrapped and sent by registered mail from partitioned and downloaded ‘‘all of the data significant information about the W–88 war- Washington, D.C. to New Mexico, correct? files required to operate those codes,’’ as head. Even though he eventually backed off Dr. ROBINSON: Correct.268 well as multiple input decks representing ac- that opinion, it helped start the investiga- tual nuclear bomb designs that ranged in so- tion that led to the discovery of Dr. Lee’s The defense team also noted that the ma- phistication from relatively simple to com- download and his jailing.’’ 279 Dr. Richter terial Dr. Lee had downloaded fell into a cat- plex. later put his dual roles at the start and at egory called Protect As Restricted Data, or ‘‘.... For a group or state that did not the end of the Wen Ho Lee case in perspec- PARD, when he made the tapes. The defini- have the indigenous scientific capability to tive for a reporter when he said, ‘‘If I had tion of PARD, taken from the U.S. Depart- do it alone, the information would represent any influence in getting him out, I figured ment of Energy Office of Security Glossary an immediate capability to design a credible that’s a payback.’’ 280 of Terms, is as follows: A handling method nuclear explosive. A country that had some In sum, the information on the tapes was for computer-generated numerical data or experience with nuclear explosives could use clearly important. It does not necessarily related information which is not readily rec- the information to optimize its nuclear follow, however, that the government was ognized as classified or unclassified because bombs. An advanced nuclear state could use right to hold Dr. Lee in harsh pretrial condi- of the high volume of output and low density the information to augment their own tions on that basis. In fact, in the August of potentially classified data.269 knowledge of nuclear explosives and to un- hearings, the judge was only ruling on the As described in the judge’s order for Dr. cover vulnerabilities in the American arse- question of whether not Dr. Lee should re- Lee’s pretrial release, the effect of the expert nal which would help them to defeat our main in pretrial confinement—under condi- opinions offered by Drs. Agnew, Goad and weapons through anti-ballistic missile sys- tions that were considerably harsher than he Richter, the defense’s showing that the ma- tems or other means.’’ 273 would be subjected to if he had been con- terial was SRD as opposed to TSRD, and that At the August detention hearings, govern- victed. If the case had gone to trial, the gov- the material was marked as PARD when it ment scientists elaborated on the signifi- ernment would undoubtedly have prevailed was downloaded was to ‘‘show that the infor- cance of the material and, specifically the on the matter of whether or not the material mation Dr. Lee took is less valuable than the increased importance that came from the on the tapes was important. The govern- government had led the Court to believe it way the files had been put together on the ment’s error was not in claiming the mate- was and less sensitive than previously de- tapes. Dr. Paul Robinson, president of rial was important, but in claiming that the scribed to the Court....’’270 Sandia National Laboratories, testified that only way to protect it was to hold Dr. Lee Judge Parker also raised a question as to the tapes ‘‘were very carefully designed to be under such harsh conditions. whether the missing tapes contained ‘‘all the loaded with the subroutines that would be The Classified Information Procedures Act information needed to build a functional needed for each design code to be placed (CIPA) issues thermonuclear weapon.’’ 271 He went on to right behind that design code. And so I be- say, ‘‘In sum, I am confronted with radically lieve they should not require a lot of addi- CIPA establishes a framework for handling divergent opinions expressed by several dis- tional instruction.274 In other words, the col- trials involving classified information, with tinguished United States nuclear weapons lection of files was more than just a collec- the objective of protecting both national se- scientists who are on opposite sides of the tion of files—it had been assembled so as to curity information and the rights of the de- issue of the importance of the information ensure that the data files called for in the fendant. One of the key concepts in CIPA is the provision permitting substitutions for Dr. Lee took.272 The judge’s findings on the codes were available at the right place, mak- sensitivity of the material on the tapes were ing it possible for the codes to actually run classified information to prevent the govern- ment from having to expose that informa- a principal factor in his decision to order Dr. when executed. tion at trial. Rather than show the actual Lee’s pretrial release, which he did on Au- The government also explained its ration- material at trial, the government is per- gust 24, 2000. ale for claiming that the information on the mitted to offer a document that conveys the When the government settled the case with tapes could change the global strategic bal- same information in unclassified form. The a plea agreement less than three weeks later, ance. After a lengthy discussion of the tech- judge presiding over the case reviews the ma- it gave the impression that it was backing nical aspects of ballistic missile defense and terial in question and the government’s pro- away from its claims about the importance the challenges presented by Multiple Inde- posed substitutions. If the judge finds that of the material. This had the unfortunate ef- pendently Targeted Reentry Vehicles the substitutions are an adequate represen- fect of reinforcing the public perception that (MIRVs), which are generally quite small, tation of the material in question, the case Dr. Robinson expressed his concern that the the government was persecuting, rather than goes forward. If the judge finds the govern- tapes Dr. Lee made could enable another na- prosecuting Dr. Lee. Like the judge, the sub- ment’s substitutions lacking, the govern- tion to develop devices that would have re- committee can only rely on the testimony of ment can make an interlocutory appeal of entry vehicles approximately the size of or- expert witnesses, but it seems that the gov- the judge’s ruling, meaning that the appeal ange traffic cones. 275 Such small warheads ernment’s witnesses made the stronger argu- is decided before the case goes forward rath- would present an enormous challenge to U.S. ments in this regard. er than after as is the usual fashion. If the ballistic missile defenses, even more difficult The most concise description of the infor- government loses a CIPA ruling, it can also than that of defending against single war- mation Dr. Lee downloaded is found in the simply drop the case. government’s public filing in response to Dr. head weapons which are larger (about the Although the prosecution of Dr. Lee ended Lee’s appeal of Judge Parker’s initial denial size of a minivan or small bus). before the CIPA issues were fully tested in While it might be tempting to simply state of bail, the relevant portions of which are ex- court, the defense clearly intended to imple- that one group of scientist’s arguments on cerpted below: ment a classic graymail tactic of forcing the this issue is most persuasive, it is not nec- ‘‘The source codes model and simulate government to dismiss the case by claiming essary to do so. One of the key witnesses who every aspect of the complex physics process that secret information had to be revealed in testified in support of Dr. Lee’s position at involved in creating a thermonuclear explo- open court to guarantee their client a fair the August 2000 hearings, Dr. John Richter, sion. The source codes are written to design trial. According to U.S. Attorney Norman subsequently modified his position. The fol- specific portions of a nuclear weapon—either Bay: the primary or the secondary. lowing exchange took place at an October 3, ‘‘In late May, we met with defense counsel ‘‘Although nuclear weapons source codes 2000 hearing before the Department of Jus- in this case. . . . And the defense lawyer said contain all of the physics involved in a ther- tice Oversight subcommittee: that he would never take a plea to any count monuclear weapon, the source codes them- Senator SPECTER: Dr. Richter, you have in the indictment—that is, ‘he’ being Dr. selves require ‘‘data files’’—both classified been quoted as testifying before Judge Lee—and that if the Government wasn’t will- and unclassified—to run actual simulations. Parker that at least 99 percent of the nuclear ing to accept, the defense was going to put Data files contain all of the physical and nu- secrets that Dr. Lee downloaded to tapes the United States on a, quote, ‘long, slow clear properties of materials required for a were unclassified. Is that an accurate state- death march under CIPA.’ ’’ 281 nuclear explosion. . . . Data files become ment? Senator Specter replied, ‘‘Mr. Bay, if some- classified as SRD [Secret Restricted Data] Dr. RICHTER: An accurate statement re- body had told me when I was a prosecuting when the properties of the materials are garding the codes. I still maintain that. The attorney they were going to put me on a most directly relevant to nuclear weapons, materials properties, I do not think I was re- long, slow death march, I would say let’s i.e., in environments involving very high ferring to that at that time, If I did say it start walking.282 pressures and temperatures. . . . that way then I did not mean it and I One of Dr. Lee’s attorneys, Mr. John Cline, ‘‘ ‘Input decks’ are mathematical descrip- erred.276 was the lead attorney on CIPA issues. He tions of the actual geometry and materials Dr. Richter also acknowledged that the told the judge that using classified informa- within a nuclear device itself. In essence, an input decks contained important informa- tion in the trial: would be necessary for

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00041 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S13814 CONGRESSIONAL RECORD — SENATE December 20, 2001 proving four central defense arguments: that ‘‘A sworn declaration from a LANL coun- and an FBI Special Agent who was assigned most of the downloaded material was already terintelligence official who participated in to the DOE for the purpose of helping to con- in the public domain; that some of the com- the investigation of Dr. Lee that Dr. Lee was duct the AI. Although Mr. Trulock was an puter codes contained flaws that made them improperly targeted for prosecution because aggressive advocate in the 1995–1996 period of less useful; that the codes were related to Dr. he was ‘‘ethnic Chinese.’’ the argument that the Chinese nuclear weap- Lee’s work; and that they were difficult to ‘‘Videotaped statements of the FBI Deputy ons program had successfully targeted the use without user manuals, which were not on director who supervised counterintelligence U.S. labs for espionage, he had only a limited the tapes.’’ 283 investigations until last year admitting that role in the investigation which resulted in The defense found a sympathetic ear with the FBI engaged in racial profiling of Dr. Lee the list of names upon which Dr. and Mrs. Judge Parker on these issues. In an order and other ethnic Chinese for criminal coun- Lee appeared. Second, and more impor- filed August 1, 2000, the judge gave the gov- terintelligence investigations. tantly, the defense memorandum fails to ac- ernment two weeks to provide substitute ‘‘The sworn affidavit the U.S. Attorney’s knowledge that the FBI was predisposed to language for specified classified information. Office used to obtain the warrant to search focus on Dr. Lee because he was already He agreed with Dr. Lee (and opposed the gov- Dr. Lee’s home, in which the FBI affidavit under investigation, albeit at a lower level ernment) as to the relevance of particular in- incorrectly claimed that Dr. Lee was more than what happened after the AI was issued. formation to the defense. For example, likely to have committed espionage for the The cumulative effect of these errors has Judge Parker said that: People’s Republic of China (PRC) because he been to create the incorrect impression that ‘‘Although the parties dispute the exist- was ‘‘overseas ethnic Chinese.’’ somehow Mr. Trulock was directly or pri- ence or magnitude of any ‘flaws’ or imperfec- ‘‘A posting to the Los Alamos Employees marily responsible for the government’s tions in the various codes at issue, the Court Forum by a LANL employee who assisted focus on Dr. Lee. The defense memorandum nonetheless finds that evidence of those al- counterintelligence investigations and per- fails to even address the question of how Mr. leged flaws or imperfections is relevant to sonally observed that the DOE engaged in ra- Trulock supposedly played a role in the pros- the Defendant’s intent to secure an advan- cial profiling of Asian-Americans at Los Ala- ecution of Dr. Lee when Mr. Trulock left tage to a foreign nation or to injure the mos during these investigations.’’ 289 government service in August 1999, nearly United States. Evidence of these alleged The memorandum went on to explain that four months before Dr. Lee was indicted.296 flaws and imperfections is also relevant for even if Dr. Lee did not have the direct evi- To bolster its case that Mr. Trulock was use in the Defendant’s cross-examination of dence of bias, he had: responsible for focusing on Dr. Lee, the de- witnesses and in the Defendant’s rebuttal of ‘‘satisfied the stringent requirements of fense memorandum cites Mr. Robert Government witnesses’ testimony on the United States v. Armstrong, 517 U.S. 456 (1996), Vrooman, who was Chief Counterintelligence issue of the sensitive nature of these which held that . . . a defendant is neverthe- Officer at LANL from 1987 until 1998. The de- codes.’’ 284 less entitled to discovery if he provides some fense quoted Mr. Vrooman as saying that The Court delivered another blow to the evidence that similarly situated people have ‘‘Mr. Trulock’s office chose to focus specifi- Government when he ruled that: not been prosecuted and that his investiga- cally on Dr. Lee because he is ‘ethnic Chi- ‘‘Evidence making a comparison of the tion and prosecution were caused by im- nese.’ Caucasians with the same background and foreign contacts as Dr. Lee were ig- input decks of Files 1 through 19 and Tape N proper racial motivations.’’ 290 to a nuclear weapons blueprint is relevant to At the plea hearing in September 2000, nored,’’ and that ‘‘racial profiling was a cru- the Defendant’s intent. In addition, this evi- Judge Parker noted from the bench that the cial component in the FBI’s identifying Dr. 297 dentiary comparison is relevant to the cross- government had made a deal with Dr. Lee Lee as a suspect.’’ The bevy of civil lawsuits that this case examination of witnesses and to the Defend- only a short time before it would have been has spawned will have to sort out whether ant’s rebuttal of Government witnesses’ tes- required to produce to the judge a substan- anyone has violated anyone else’s rights or timony on the Government’s assertion that tial volume of material on the selective pros- engaged in slander or defamation, but for the the input decks constitute an electronic ecution issue,291 raising the inference that 285 purposes of this report, several observations blueprint of a nuclear weapon.’’ the government reached the plea agreement about Mr. Vrooman’s allegations are appro- Consonant with these determinations, the to avoid its discovery obligations on the se- priate. First, his statement that ‘‘Caucasians judge ordered the government to propose lective prosecution issue. A Department of substitutions by August 14, with the defense with the same background and foreign con- Energy review of ethnic bias within the de- tacts as Dr. Lee were ignored’’ is factually to respond by August 21. Any issues that partment concluded that there was room for could not be agreed upon were to be resolved incorrect. While any fair reading of the docu- improvement on ethnic sensitivity,292 but 286 ment would suggest that the authors of the at a hearing on August 31. none of the survey’s results supported the al- The government was perhaps most con- AI were of the opinion that Dr. and Mrs. Lee legations that Dr. Lee had been targeted be- cerned that the argument about flaws in the were the prime suspects, the document also cause of his ethnicity. An April 2001 review codes could force an in-depth discussion of listed several other individuals, some of by DOE Inspector General Gregory Friedman the codes in open court, something it was whom were Caucasian, and recommended was even more direct, concluding that ‘‘in- not prepared to do. There was also a very that the others be investigated as well. formation reviewed by the Office of Inspec- real concern about permitting Dr. Lee to Therefore, it is simply inaccurate to state tor General did not support concerns regard- make a comparison between an actual blue- that Mr. Trulock’s office focused specifically ing unfair treatment based on national ori- print and the electronic version of a weapon on Dr. Lee, for any reason, let alone because gin in the security processes reviewed.’’ 293 contained in the input deck. These would he was ethnic Chinese. Because these charges have not been rebut- have been challenges, but the government Second, Mr. Vrooman raised questions in ted, the public may have been left with the had not taken any of its appeals when it the late 1980s about Dr. Lee’s contacts with impression that Dr. Lee’s allegations were made the plea deal, and was a long way from Chinese officials and identified Dr. Lee to correct, and that the government acted out having to cede the case on CIPA grounds. Energy Department officials as a potential of racial or ethnic prejudice. Any such im- suspect in the W–88 case.298 He also formerly Allegations of Selective Prosecution/Racial pression is injurious to the public’s trust in subscribed to the theory that the Chinese Profiling the institutions which are charged with en- had obtained information about the W–88 Among the more sensational allegations of forcing the nation’s laws and must be prop- through espionage, telling the FBI at one government misconduct in this case are erly addressed. point of a ‘‘smoking gun’’ in the case.299 charges that Dr. Lee was selected for inves- In pleading the case that Dr. Lee was tar- Thus, although Mr. Vrooman has become tigation and prosecution based on his eth- geted for criminal investigation because he critical of the conclusions of the AI and its nicity. The terms ‘‘selective prosecution’’ is ethnic Chinese, Dr. Lee’s lawyers alleged focus on Dr. Lee, he was instrumental in re- and ‘‘racial profiling’’ have been used to de- that ‘‘the troubling chain of events that led laying the DOE analysis regarding the ex- scribe how the government allegedly decided to Dr. Lee’s indictment began when the tent of the PRC espionage to the FBI. Had to focus on Dr. Lee. The subcommittee’s re- DOE’s Chief Intelligence Officer, Notra Mr. Vrooman doubted the analysis of the view of these allegations shows that the evi- Trulock, incorrectly concluded in 1995 that DOE’s review group, he could have raised dence simply does not support charges that the PRC had obtained the design information those concerns then rather than saying that Dr. Lee’s ethnic heritage was a decisive fac- for the W–88 warhead from someone at the a smoking gun had been discovered. When tor in the government’s actions during any Los Alamos National Laboratory.’’ 294 The challenged on this point during a hearing, phase of this case. defense memorandum further alleges that Mr. Vrooman said that he had called Mr. In June 2000, Dr. Lee’s defense team filed a the Administrative Inquiry which was issued Trulock’s office in May 1996, but Mr. Trulock motion ‘‘for discovery of materials relevant by Mr. Trulock in May 1996 listed Dr. Lee as was not in. He said that he did not further to establishing that the government has en- the main suspect, prompting the FBI to open pursue the matter because: gaged in unconstitutional selective prosecu- a criminal investigation of Dr. Lee.295 ‘‘My supervisor, who was the lab’s director, tion.’’ 287 As grounds for this discovery re- There is legitimate debate about the scope told me he wanted me to improve my rela- quest, the defense team claimed that Dr. Lee and conclusions of the AI, and that subject is tionship with Mr. Trulock and what I was had ‘‘concrete proof that the government im- addressed elsewhere in this report, but the about to say would not have done that. properly targeted him for criminal prosecu- defense’s allegations are inaccurate in two ‘‘So we decided, as a matter of course, to tion because he is ’ethnic Chinese.’’’ 288 The major ways. First, the memorandum over- let the FBI have this case. We had worked defense’s memorandum cited four examples states Mr. Trulock’s role in the development with the FBI for years. They had always pro- as proof of such targeting: of the AI, which was written by Dan Bruno tected people’s civil rights and did the case

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If documents or infor- outrageous, biased and unacceptable claim come to the same conclusion we had.’’ 300 mation provided to a foreign government that would have no place in any law enforce- Mr. Vrooman also said that he met weekly could injure the United States or aid a for- ment or counterintelligence investigation. with FBI agents on the case and routinely eign country, the crime of espionage has still In the Wen Ho Lee case, the government’s expressed reservations, which came to a head been committed even if the transfer was mo- assertions were confined to acknowledging in December 1998 when ‘‘we were basically tivated by a desire to promote scientific ex- that the PRC focused on overseas ethnic Chi- thinking that Lee was not the right man.’’ 301 change and in the absence of a desire for nese, without making inferences that the Given that Mr. Vrooman retired from Los monetary reward. targeted individuals would be more likely to Alamos on March 13, 1998,302 it remains un- The November 10, 1998 memorandum also respond positively because of their Chinese clear as to how he was sufficiently informed describes a meeting at Los Alamos in early heritage. The defense memorandum cites on the case in December of that year to 1994 during which it became apparent that FBI Special Agent Michael Lowe’s April 9, make judgements of this sort. Dr. Lee had a relationship with a top PRC 1999 affidavit in support of a search warrant, And, finally, it should be noted that Mr. nuclear weapons scientist. A reliable source saying that it leaves no doubt that improper Vrooman was one of the three individuals quoted this top PRC nuclear scientist as say- racial profiling was a substantial basis for disciplined for his role in failing to remove ing of Dr. Lee, ‘‘We know him very well. He the targeting of Dr. Lee. The defense’s asser- Dr. Lee from access after the Director of the came to Beijing and helped us a lot.’’ 307 The tion on this point is incorrect. In relevant FBI recommended twice in late 1997 that Dr. source further reported that Dr. Lee had part, the affidavit says: Lee’s clearance be removed.303 The subse- helped the Chinese Academy of Engineering ‘‘. . . PRC intelligence operations virtually quent discovery that Dr. Lee had been en- Physics ‘‘with various computational codes always target overseas ethnic Chinese with gaged in massive illegal downloading reflects used in fluid dynamics which is a very im- access to intelligence information sought by poorly on Mr. Vrooman’s conduct as the portant aspect of thermal nuclear [sic] weap- the PRC. Travel to China is an integral ele- lab’s counterintelligence chief and gives him ons design work.’’ 308 The Albuquerque memo ment of the Chinese intelligence collection a strong motive to minimize Dr. Lee’s con- cited these specific acts as showing ‘‘Wen Ho tradecraft, particularly when it involves duct and to allege government discrimina- Lee’s propensity to associate with foreign overseas ethnic Chinese. FBI analysis of pre- tion. Any assessment of Mr. Vrooman’s opin- governments and provide information to for- vious Chinese counterintelligence investiga- ion of the government’s handling of the case eign governments and therefore the propen- tions indicates that the PRC uses travel to against Dr. Lee must be made with these sity to aid in and commit acts of espio- China as a means to assess closely and evalu- facts in mind. nage.’’ 309 These statements demonstrate ate potential intelligence sources and Furthermore, when pressed for examples of clearly that the government’s assertions agents, as a way to establish and reinforce supposed bias on the part of the government, about Dr. Lee’s motives were based on spe- cultural and ethnic bonds with China, and as Mr. Vrooman fell short. At an October 3, 2000 cific acts he was known to have committed a safehaven in which to recruit, task, and de- hearing of the Judiciary subcommittee on rather than on the fact that he is ethnic Chi- brief established intelligence agents.’’ 311 Department of Justice Oversight, Senator nese. These specific acts gave the govern- This does not allege that Dr. Lee is likely Grassley pursued this line of questioning. ment ample reason to investigate him and to have engaged in espionage because he is Senator Grassley asked for information to the allegations of Mr. Vrooman and others, ethnic Chinese, only that he is likely to have substantiate Mr. Vrooman’s allegation that that the government relied only on ethnic been targeted by the PRC intelligence serv- whenever Dr. Lee’s motive [for the alleged profiling, are simply incorrect. ices on that basis. All the defense memo- espionage against the United States] was dis- In fact, all of the arguments put forward randum shows is that if there is any ethnic cussed, it came down to ethnicity. The fol- by Dr. Lee’s lawyers on the racial profiling profiling done, it is done by the PRC. Since lowing exchange occurred: issue are a skewed interpretation of the the PRC had no role in the decision to inves- same point—namely the U.S. government’s Mr. VROOMAN: Well, the Department of tigate or prosecute Dr. Lee, any bias on their recognition that the PRC intelligence serv- Justice representative asked the FBI what part would be irrelevant. ices focus on Chinese-Americans. Consider Lee’s motive was because it was not clear to It should be noted that Dr. Lee’s request the second and third examples cited in the him and the response was an elaboration on for discovery related to selective prosecution discovery memorandum, where the defense how the Chinese focus their efforts on ethnic contained several factual errors, including claims that former FBI Deputy Director Chinese. That is one example. And there are an incorrect claim that no one else had ever Paul Moore has confirmed that Dr. Lee was others, conversations over the years since been prosecuted under the Atomic Energy targeted by the FBI due to racial profiling, Act, and an incorrect claim that the Depart- this investigation proceeded, that that was and that the affidavit in support of a search the only motive. ment of Justice had never prosecuted anyone warrant for Dr. Lee’s home claimed that Dr. under the espionage statutes without evi- Senator GRASSLEY: Okay. Could you point Lee was more likely to have engaged in espi- to any documentation that would back up dence that classified material had been onage for the PRC because he was ethnic transferred to a third party. These claims the point that was just made? Chinese. Neither of these claims stands up to Mr. VROOMAN: No, sir, I cannot. were shown to be incorrect in the govern- even the most minimal level of scrutiny be- Senator GRASSLEY: Or the points that you ment’s response to Dr. Lee’s discovery re- cause both are misrepresentations of what are making about ethnicity being of prime quest.312 was actually said. concern? The defense memorandum on selective The Relationship Between the Lees and the Mr. VROOMAN: I do not believe there are prosecution quotes former FBI Deputy Direc- Government 304 any documents. tor Paul Moore as saying in a televised inter- Shortly after Dr. Lee was fired from In fact, there are documents which de- view with Jim Lehrer on December 14, 1999: LANL, he retained Mark Holscher as his scribe Dr. Lee’s motives, but they run ‘‘There is racial profiling based on ethnic counsel. On May 6, 1999, Mr Holscher released counter to what Mr. Vrooman alleges. In the background. It’s done by the People’s Repub- the following statement, which clearly indi- November 10, 1998 request for electronic sur- lic of China. . . . Now the FBI comes along cated that any prosecution of Dr. Lee would veillance on Dr. Lee, the newly appointed and it applies a profile, so do the other agen- have to deal with the Lees’ cooperation with FBI case agent describes several incidents cies who do counter intelligence investiga- the government: from Dr. Lee’s past and states their rel- tions they apply a profile, and the profile is ‘‘Dr. Wen Ho Lee has dedicated himself to evance to the issue of motive. One section of based on People’s Republic of China, PRC in- the defense of this country for the last 20 this November 1998 FISA request from the telligence activities. So, the FBI is com- years. His work, much of which is classified, Albuquerque office describes how Dr. Lee mitted to following the PRC’s intelligence has led directly to the increased Safety and sent numerous documents to Taiwan’s Co- program wherever it leads. If the PRC is national security of all Americans, and he is ordinating Council of North America (CCNA) greatly interested in the activities of Chi- responsible for helping this country safely in the late 1970s and early 1980s, and says nese-Americans, the FBI is greatly inter- simulate nuclear tests. that Dr. Lee told the FBI that: ested in the activities of the PRC as [re- ‘‘In 1986 and 1988, Dr. Lee went to Mainland ‘‘his motive for sending the publications gards] Chinese-Americans.’’ 310 China to present papers at two technical was brought on out of a desire to help in sci- To say that the United States government conferences. Dr. Lee’s participation in these entific exchange. During the same interview, is cognizant of the fact that the PRC prefers conferences was pre-approved and encour- Dr. Lee stated that he helps other scientists to target individuals for elicitation based on aged by the Los Alamos Laboratory and the routinely, and had no desire to receive any their ethnicity is completely different from Department of Energy. These same entities monetary or any other type of reward.’’305 saying that an individual would be more also cleared the texts of the papers given at The memo continues, saying the Albu- likely to engage in espionage because he or these conferences, which covered mathe- querque Division of the FBI believes that Dr. she is a member of a particular ethnic group. matics and physics topics. Lee’s actions in sending these documents to The former statement about recruitment ef- ‘‘The press has incorrectly reported that a foreign government without proper author- forts of PRC intelligence services would be a Dr. Lee made ‘‘several’’ trips to Mainland ization ‘‘shows that Wen Ho Lee has the pro- logical, relevant and acceptable observation China and also has failed to report that his pensity to commit and engage in the crime so long as it was based on fact. The latter two trips were approved in advance by the of espionage to include willingly providing statement, implying that an individual Los Alamos Laboratory and the Department documentation to foreign officials. . . .’’306 would be more likely to engage in espionage of Energy. These two approved trips were the This discussion of motive makes no mention on the basis of his or her race, would be an only times Dr. Lee has ever traveled to

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00043 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S13816 CONGRESSIONAL RECORD — SENATE December 20, 2001 Mainland China. These false press reports do via Lee’s cooperation with the Federal Bu- Again, the judge was not persuaded, say- a disservice both to Dr. Lee and the Los Ala- reau of Investigation (FBI), Central Intel- ing, ‘‘Throughout this case, the government mos Laboratory. ligence Agency (CIA), and the Department of has repeatedly questioned the veracity of Dr. ‘‘The press reports also fail to include the Energy (DOE), and (2) certain FBI memo- Lee. You’re saying now, simply because he fact that Dr. Lee presented similar papers at randa regarding the propriety of prosecuting has given a statement under oath, the gov- conferences in several countries throughout the Defendant.317 After reviewing this infor- ernment no longer believes he is a threat to Western Europe and other parts of the world. mation, the judge ruled that it contained in- national security?’’ 324 The false insinuations that Dr. Lee went to formation relevant to the defense in several The judge appeared to be not so much con- Mainland China in the late 1980s with an im- categories of exculpatory information: cerned that the plea agreement was inappro- proper purpose are unfair. Not only did Dr. 1. [redacted]; priate, but that it could have been reached Lee go to Mainland China to present a tech- 2. The Defendant’s cooperation with and much sooner. He noted that the government nical paper, his and his wife’s attendance provision of information to Government had rejected a written offer from Dr. Lee’s were with the full knowledge and approval of agencies; attorneys to have Dr. Lee explain the miss- the Federal Bureau of Investigation. 3. The Government agencies’ assessments ing tapes under polygraph exam, which was ‘‘There have been inaccurate press reports of cooperation by and reliability of Sylvia essentially the same deal the government regarding the circumstances surrounding Dr. Lee and the Defendant; got in the end (minus the felony count). 4. The Defendant’s actions that may be and Mrs. Lee’s cooperation with the govern- Judge Parker also reminded counsel for both perceived to be inconsistent with an intent ment. Mrs. Lee agreed to the FBI’s request sides that at the December detention hearing to secure an advantage for a foreign nation; that she assists it as a volunteer without pay he had asked the parties to pursue the offer in the FBI’s efforts to monitor Chinese sci- and 5. The Government agencies’ conclusions made by Mr. Holscher, but nothing came of entists. She agreed to help the FBI with the about the Defendant’s motives.318 it. Mr. Stamboulidis took issue with the full knowledge and approval of Dr. Lee and The relationship between the government judge, saying that after the indictment, the continued to do so for a number of years. and the Lees would not likely have been a offer had been withdrawn, to which Judge ‘‘At the request of the FBI, Dr. Lee’s wife major part of any trial, but it certainly had Parker replied: attended the 1986 conference with him, where the potential to embarrass the government. ‘‘Nothing came of it, and I was saddened by she voluntarily provided background infor- The laws on intelligence oversight set out the fact that nothing came of it. I did read mation on Chinese scientists. Dr. and Mrs. strict procedures for establishing a reporting the letters that were sent and exchanged. I Lee supported and agreed with the FBI’s re- relationship or an asset relationship with an think I commented one time that I think quest that Mrs. Lee assist it in obtaining American citizen. Press reports suggest, for both sides prepared their letters primarily background information on Chinese sci- example, that Mrs. Lee provided information for use by the media and not by me. Notwith- entists. It simply defies logic for critics to to both the FBI and the CIA, including re- standing that, I thought my request was not now allege that Dr. Lee was engaged in im- peated contacts in the mid–1980s where a CIA taken seriously into consideration.’’ 325 proper activities in Mainland China while he agent was present for the meetings and paid The net effect of Judge Parker’s questions and his wife were there. for the hotel room where the meetings took and the government’s apparent reversal on ‘‘At no time during or after the pre-ap- place.319 If the government had failed to con- the matter of the threat posed by Dr. Lee proved 1986 or 1988 trips did Dr. Lee ever pro- form to any of the laws or regulations in created the impression that the case had col- vide any classified information whatsoever these matters, it could expect the defense to lapsed. This led to some sharp questions to to any representative of Mainland China, nor bring them up at trial. the Attorney General and FBI Director has he ever given any classified information Freeh at the September 2000 hearing. Direc- to any unauthorized persons. As was antici- The Plea Agreement tor Freeh explained that serious negotia- pated and approved by the U.S. government, After Judge Parker ruled that Dr. Lee had tions about a plea agreement had begun dur- Dr. Lee and his wife socialized with Chinese to be released pending trial, the landscape ing the summer at the direction of Judge scientists. It was fully understood by the De- shifted markedly. By September 13, the gov- Parker, and reiterated that the over-arching partment of Energy and the Los Alamos Lab- ernment reached the plea agreement which reason for the government’s decision to oratory that the conferences included social has been previously described. When the make the agreement was to find out what events with the participants.’’ 313 judge accepted the plea agreement, Dr. Lee happened to the tapes.326 Had the case gone to trial, the government was set free, subject only to the requirement After noting that he and the Attorney Gen- would have had to confront the issue of its that he undergo three weeks of intense de- eral were in total agreement with the deci- relationship with Dr. and Mrs. Lee over a briefing, subject himself to a polygraph on sion on the plea deal, Director Freeh out- long period of time. As previously noted, Dr. questions related to the case, and remain lined five other factors which figured into Lee assisted the FBI in a 1983–1984 investiga- available to cooperate with the FBI for a pe- the government’s decision which are summa- tion of a Lawrence Livermore scientist. Not- riod of one year. rized below: withstanding the FBI’s denial of any assist- During the plea hearing, Judge Parker 1. Judge Parker’s strong suggestion that ance when the FISA request went forward in asked the government to explain why the the case was appropriate for mediation rath- 1997, Dr. Lee had, in fact, helped the FBI. government considered the agreement to be er than trial; Mrs. Lee’s relationship with the government in the best interest of the nation. The gov- 2. Judge Parker’s rulings in favor of the de- would have been a substantially more dif- ernment’s lead prosecutor, Mr. fendant in initial proceedings under CIPA, ficult matter to contend with. Stamboulidis, answered that the plea pro- which made it appear that Dr. Lee might In one discovery request, Dr. Lee’s defense vided the ‘‘best chance to find out with con- succeed in his attempt at graymail because team asked for, among other things, all in- fidence precisely what happened to the clas- the judge’s reasoning left little room to ex- formation related to ‘‘Sylvia Lee’s Coopera- sified material and data’’ on the missing pect that the government would prevail; tion with the FBI and CIA.’’ Citing grand tapes, which he said had been the govern- 3. Judge Parker’s August ruling (although jury testimony of the FBI case agent on the ment’s ‘‘transcending concern.’’ 320 He also stayed by the Tenth Circuit) that created Wen Ho Lee matter, the defense memo- explained that the cooperation agreement the ‘‘very real prospect that Dr. Lee would randum said that: would allow the government to verify Dr. soon be released in any event under condi- ‘‘Sylvia Lee served as an FBI ‘‘Information Lee’s statements, and that Dr. Lee would be tions that we pointed out to the judge were Asset’’ between 1985 and 1991 in connection at great risk if he failed to fully cooperate or inadequate to prevent Dr. Lee’s communica- with visits to LANL by PRC scientists. Her to be truthful. And, finally, Mr. tions with others.’’ principal FBI contact was FBI Special Agent Stamboulidis said, ‘‘this disposition avoids 4. The potential that the trial would be- David Bibb. On at least two occasions, Dr. the public dissemination of certain nuclear come a ‘‘battle of the experts’’ with regard Lee attended meetings between Sylvia Lee secrets which would have necessarily oc- to the classification level and importance of and her FBI contact. Sylvia Lee also met curred on the way towards proceeding to- the material on the tapes; and with [name redacted] and representatives of wards conviction in this case at trial.’’ 321 5. The fact that ‘‘the FBI’s lead case agent the LANL internal security office to provide The judge was not entirely convinced, ask- had had to correct erroneous testimony from information concerning PRC scientists.’’ 315 ing ‘‘why the government argued so vehe- the initial detention hearing,’’ including the In its response, the government claimed mently that Dr. Lee’s release earlier would agent’s misstatement about Dr. Lee telling that it had produced all documents related have been an extreme danger to the govern- another scientist he wanted to use his com- to Lee’s cooperation with the FBI. Further, ment at this time he, under the agreement, puter to download a resume (when Dr. Lee the government argued that while Dr. Lee’s will be released without any restrictions?’’ 322 had actually said he wanted to download purported assistance to the government Referring to two sworn statements Dr. Lee some files), and the agent’s overstatement of might be relevant to a jury in considering had provided on the morning of the plea evidence relating to whether Dr. Lee had his criminal intent pursuant to the Atomic hearing, Mr. Stamboulidis said that Dr. Lee sent letters to find outside employment.327 Energy Act counts, Mrs. Lee’s ‘‘affiliation had finally, ‘‘for the first time, given us Director Freeh’s statements provide a with the FBI and/or the CIA has no bearing these assurances that he never intended any compelling rationale for the government’s on Lee’s criminal intent.’’ 316 harm to our nation by his mishandling these decision to accept the plea agreement. What In a July 13, 2000 order, Judge Parker said materials in an unlawful way and that he has not been adequately explained, however, that he would address this issue by review- never allowed them to fall into harm’s way is the decision to keep Dr. Lee in such oner- ing, in camera: (1) documents reflecting Syl- and compromise national security.’’ 323 ous conditions of pretrial confinement. After

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00044 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S13817 careful review, it becomes apparent that the member, to issue a subpoena requiring the 39. See declassified transcript of closed government was right to reach a plea agree- Attorney General to produce certain docu- portion of detention hearing on December 29, ment with Dr. Lee, whose actions did con- ments if they were not delivered voluntarily. 1999, during which FBI Special Agent Robert stitute a serious threat to the national secu- The second resolution, authorizing sub- Messemer characterizes the fact that Dr. Lee rity, but was wrong to hold him virtually in- poenas in 38 categories for individuals and called the Coordination Council of North communicado in pretrial confinement for documents, was approved (not unanimously) America at the same time he was calling the more than nine months. on November 17, after a narrower proposal by LLNL scientist as more troubling then the ENDNOTES Senator Leahy was rejected. fact that he lied to the FBI about having 18. The indictment alleged violations of the called the LLNL scientist. 1. ‘‘Plea and Disposition Agreement,’’ following sections of the U.S. Code: 42 USC 40. United States Senate, Joint Hearing be- United States vs. Wen Ho Lee, Criminal No. 2276, 42 USC, 2275, 18 USC 793(c), and 18 USC fore the Senate Select Committee on Intel- 99–1417 JP, 13 September 2000: 2. 793(e). ligence and the Senate Judiciary Committee, 2. Although the request that was rejected 19. The term ‘‘Restricted Data’’ means all ‘‘Joint Hearing on the Wen Ho Lee Case,’’ by the Department of Justice’s Office of In- data concerning: (1) the design, manufacture 106th Congress, 2nd Session, September 26, telligence Policy and Review did not ask for or utilization of atomic weapons: (2) the pro- 2001: 72. computer surveillance, both the FBI and the duction of special nuclear material; or (3) 41. Draft #3 of the 1997 FISA request, 10. DoJ acknowledge that this would have be- the use of special nuclear material in the 42. Redacted Transcript, 16–17; Thompson come part of any approved surveillance plan. production of energy. 42 U.S.C. § 2014(y). and Lieberman Statement, 6, 16. 3. House of Representatives, ‘‘Report of the 20. United States Senate, ‘‘Joint Hearing 43. James Risen and David Johnston. ‘‘U.S. Select Committee on U.S. National Security on the Wen Ho Lee Case,’’ before the United Will Broaden Investigation of China Nuclear and Military/Commercial Concerns with the States Senate Select Committee on Intel- Secrets Case,’’ New York Times, September People’s Republic of China,’’ 105th Congress, ligence and Committee on the Judiciary. 23, 1999, Online Edition. 2d Session, Report 105–851, 25 May 1999. 106th Congress, 2nd Session, September 26, 44. FBI Director Freeh testified at a joint [Hereafter Cox Committee Report] 2000: 38. Testimony of FBI Director Louis hearing of the Senate Judiciary and Select 4. Carla Anne Robbins, ‘‘China Got Secret Freeh. [Hereafter ‘‘Joint Hearing’’] Intelligence Committees on September 26, Data on U.S. Warhead,’’ Wall Street Journal, 21. Stephen Younger, ‘‘Transcript of Pro- 2000 that ‘‘the FBI’s investigation into this January 7, 1999: 1. ceedings, Detention Hearing in the case of 1994 matter was still ongoing when Dr. Lee 5. Robbins, 1. United States vs. Wen Ho Lee,’’ December 13, emerged as a potential subject in the 1996 ad- 6. Robbins, 1. 1999: 38. [Hereafter, Transcript of Pro- ministrative inquiry.... Being aware of 7. James Risen and Jeff Gerth, ‘‘Breach at ceedings, Detention Hearing, December 13, the potential interest in Dr. Lee, and not Los Alamos: A Special Report,’’ New York 1999] wanting to take any steps that would inter- Times, March 5, 1999: A1. 22. Transcript of Proceedings, Detention fere with the inquiry or expose the FBI’s in- 8. Risen and Gerth, 1. Hearing, December 13, 1999, 38. terest in him, FBI headquarters and FBI Al- 9. Risen and Gerth, 1. It should be noted 23. Transcript of an in camera proceeding buquerque agreed to hold the investigation that the New York Times, generally, and held on December 29, 1999, United States v. of the 1994 investigation in abeyance.’’ See Risen and Gerth specifically, came under Wen Ho Lee, 59. hearing transcript, 46–47. At another hearing fierce attack for their original article, which 24. Matthew Purdy and James Sterngold, the following week, Mr. Trulock testified, was said to have vastly overstated the case ‘‘The Prosecution Unravels: The Case of Wen however, that ‘‘The DOE/FBI’s team’s first against Dr. Lee. Shortly after Dr. Lee was Ho Lee,’’ New York Times, February 5, 2001, visit to the laboratory occurred in 1996.... freed in September 2000, the NYT published a online edition. DOE first learned of Dr. Wen Ho Lee when he 25. Transcript of Proceedings before The statement finding fault with its coverage of was brought to our attention by Robert Honorable James A. Parker, U.S. v. Wen Ho the case, and promising a thorough review of Vrooman in January of 1996. . . .’’ See Ju- Lee, September 13, 2000: 55 [Hereafter Plea the matter, which was published in a two-ar- diciary Committee hearing, October 3, 2000: Hearing, September 13, 2000] ticle series in February 2001. See Matthew 43. 26. Plea Hearing, September 13, 2000: 58. Purdy, ‘‘The Making of a Suspect: The Case 45. Thompson and Lieberman Statement, 6, of Wen Ho Lee,’’ New York Times, February 27. ‘‘President Clinton calls Lee case ‘trou- bling’ ’’, CNN website September 14, 2000. footnote 14. 4, 2001: 1, and Matthew Purdy and James 46. Redacted Transcript, 108–109. Sterngold, ‘‘The Prosecution Unravels: The 28. Transcript of Proceedings, Motion Hearing, December 27, 1999: 49. [Hereafter 47. Redacted Transcript, 109. Case of Wen Ho Lee,’’ New York Times, Feb- 48. Redacted Transcript, 109. Motion Hearing]. ruary 5, 2001: 1. 49. Ian Hoffman, ‘‘Lawyer: Lee’s Intent in 10. Risen and Gerth, 1. 29. This information was drawn from Dr. Lee’s web site at http://wenholee.org/ Question,’’ Albuquerque Journal, Jan- 11. Josef Hebert, ‘‘Government scientist in- uary 5, 2000, at http://wenholee.org/ volved in probe is fired,’’ Associated Press, whois.htm. 30. Michael W. Lowe, ‘‘Application and Af- ABQJournal010500.htm. March 8, 1999: 1. fidavit for Search Warrant,’’ April 9, 1999: 1– 50. For a discussion of this issue, see Mo- 12. James Risen, ‘‘U.S. Fires Scientist Sus- 2. tion Hearing, 147–157. pected of Giving China Bomb Data,’’ New 31. United States of America, ‘‘Response to 51. Motion Hearing, 152–153. York Times, March 9, 1999: A1. Defendant Wen Ho Lee’s Motion to Revoke 52. DOE Assistant Secretary for Congres- 13. Risen, 1. Judge Svet’s Order of Detention,’’ December sional and Intergovernmental Affairs John 14. See Cox Committee Report, Volume I, 23, 1999: 10. See also, United States Senate, C. Angell, letter to Senator Charles Grassley 90–91. Committee on the Judiciary, Redacted Tran- of December 20, 2000, responding to written 15. See ‘‘Science at its Best, Security at its script of Closed Hearing with Attorney Gen- questions submitted by Senator Arlen Spec- Worst: A Report on Security Problems at the eral Janet Reno Regarding the FISA Process ter following a September 27, 2000, hearing of U.S. Department of Energy,’’ A Special In- in the Wen Ho Lee Case, June 8, 1999: 14–16. the Senate Judiciary Subcommittee on Ad- vestigative Panel of the President’s Foreign 32. USA, ‘‘Response,’’ 10. See also, United ministrative Oversight and the Courts: 21. Intelligence Advisory Board, June 1999. States Senate, Committee on the Judiciary. 53. See John Angell’s December 20, 2000 let- 16. Senate Governmental Affairs Com- Redacted Transcript of Closed Hearing with ter to Senator Grassley, 20. mittee Chairman Fred Thompson (R–TN) and Attorney General Janet Reno Regarding the 54. Even if DOE computer personnel and Ranking Minority Member Joseph Lieber- FISA Process in the Wen Ho Lee Case, June counterintelligence were unaware that Dr. man (D–CT), statement, ‘‘Department of En- 8, 1999: 15. [Hereafter, Redacted Transcript] Lee was under investigation by the FBI, and ergy, FBI, and Department of Justice Han- 33. Redacted Transcript, 15. that would have been possible in 1994, it dling of the Espionage Investigation into the 34. Redacted Transcript, 15. would not have been inappropriate for DOE Compromise of Design Information on the 35. ‘‘Response to Defendant Wen Ho Lee’s to share records of systems like NADIR with W–88 Warhead,’’ August 5, 1999: 1. Motion to Revoke Judge Svet’s Order of De- the FBI. This has the benefit of allowing the 17. The initial plan was to commission a tention,’’ December 23, 1999: 13, footnote 4. FBI to find out if any individuals are being Task Force, which I would chair. By October, 36. Ian Hoffman, ‘‘Agent: Lee Admitted flagged by security and monitoring systems, Senator Hatch had prepared a resolution Lying,’’ Albuquerque Journal, January 18, without alerting computer personnel to the transferring me from the Constitution Sub- 2000, online edition. investigation. committee to the subcommittee on Adminis- 37. Redacted Transcript, 16. 55. United States of America, ‘‘Response to trative Oversight and the Courts, and spell- 38. The FBI could tell from the text of the Defendant Wen Ho Lee’s Motion to Revoke ing out the areas of inquiry and special pro- intercepted call that Dr. Lee had heard of Judge Svet’s Order of Detention,’’ December cedures applicable to the investigation. In the other scientist through a mutual friend. 23, 1999. the end, the subcommittee’s investigation What the FBI could not learn from that call, 56. The ‘‘walk-in’’ document is so named was conducted pursuant to two subpoena res- and what Dr. Lee did not fully explain until because an individual provided this informa- olutions which spelled out, in general terms, sometime later, was that he had learned tion to the United States without being so- the investigative mandate. The first sub- about the other scientist when he visited licited for it, in other words, he ‘‘walked-in’’ poena resolution, adopted by a vote of 18–0 LLNL in October, 1982. His actions upon with the information. The documents he pro- on October 14, 1999, authorized the learning about the other scientist’s situation vided contained classified nuclear weapons charirman, in consultation with the ranking are of particular importance. information.

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00045 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S13818 CONGRESSIONAL RECORD — SENATE December 20, 2001 57. Energy Secretary William Richardson, 87. Redacted Transcript, 24–25. 121. At the December 14, 1999 meeting in letter to FBI Director Louis J. Freeh, of Oc- 88. Redacted Transcript, 39. which Director Freeh asked the sub- tober 29, 1999L 1. 89. Redacted Transcript, 39. committee to suspend its oversight of the 58. For example, a September 16, 1996 FBI 90. Bellows Report, 549. Wen Ho Lee case, Mr. Curran was asked 302 from an interview of a scientist says that 91. Redacted Transcript, 40. about an FBI memo from February 1999 in September 1995 the KSAG met and ‘‘there 92. Redacted Transcript, 36. which claimed that Mr. Curran had in- was no disagreement that ‘Restricted Data’ 93. Redacted Transcript, 56. structed his personnel not to share the 94. Redacted Transcript, 117. information had been acquired by the Chi- charts and videotape of the December 1998 95. Redacted Transcript, 117. nese. The only disagreement was over how polygraph with the FBI. After seeing an 96. Bellows Report, 541. valuable the information was.’’ 97. Motion Hearing, 85. See also Pete early draft of the interim report. Mr. Curran 59. DOE Administrative Inquiry, 38. Carey, ‘‘Los Alamos Suspect May Have Been wrote a letter on January 31, 2000, denying 60. DOE Administrative Inquiry, 36. Doing His Job: Rerouting Files Common at the information in the FBI report. He also 61. DOE Administrative Inquiry, 38. Lab,’’ Florida Times-Union, June 20, 1999, G– sent a copy of a letter he had received from 62. See FBI 302 dated September 2, 1999, 8. FBI Assistant Director Neil Gallagher, which from an interview of the FBI agent who was 98. ‘‘With Intent to Injure the U.S.’’ Wash- described the memo in question as a ‘‘blind detailed to assist with the AI, 4. ington Times, editorial, December 4 1999, memo’’, not intended to capture actual wit- 63. FBI teletype from FBIHQ to FBI–AQ, A16. ness statements. dated August 20, 1996: 3. 99. United States of America, ‘‘Response to 122. Ed Curran, Director, DOE Office of 64. FBI 302 dated 9/16/96 (from an interview Defendant Wen Ho Lee’s Motion to Revoke Counterintelligence, letter to Senator Arlen on 9/13/96) of a LANL scientist, 2. Judge Svet’s Order of Detention,’’ December Specter, January 31, 2000: 2–3. 65. William Broad, ‘‘Spies Versus Sweat: 23, 1999, 3–4. 123. See the letter of 20 December 2000 from The Debate Over China’s Nuclear Advance,’’ 100. Hoffman. John C. Angell, Assistant Secretary of Con- New York Times, September 7, 1999, Online 101. Thompson and Lieberman Statement, gressional and Intergovernmental Affairs, Edition. 23–24. Department of Energy to Senator Charles 66. Vernon Loeb and Walter Pincus. ‘‘China 102. Unclassified summary of the December Grassley, which enclosed responses from Mr. Prefers the Sand to the Moles,’’ Washington 19, 1997, FBIHQ teletype to Albuquerque, pro- Curran to 22 questions from Senator Specter. Post, December 12, 1999, A02. vided by FBI Office of Public and Congres- Wackenhut is a private company that has 67. United States House of Representatives, sional Affairs, December 3, 1999. a contract with DOE to perform security re- Report of the Select Committee on U.S. Na- 103. FISA Request, November 10, 1998: 11. lated polygraphs. tional Security and Military/Commercial 104. FISA Request, November 10, 1998: 11. 125. Matthew Purdy, ‘‘The Making of a Sus- Concerns With the People’s Republic of 105. FISA Request, November 10, 1998: 11. pect: The Case of Wen Ho Lee,’’ New York China, May 25, 1999: Volume 1, 83–84. [Herein- 106. FISA Request, November 10, 1998: 11. Times, February 4, 2001, online edition. after, Cox Report] A ‘‘walk-in’’ is an indi- 107. FISA Request, November 10, 1998: 11. 126. ‘‘Department of Energy Chronology,’’ vidual who voluntarily offers to conduct es- 108. FISA Request, November 10, 1998: 11–12. May 6, 1999: 7–8. pionage. 109. FISA Request, November 10, 1998: 12. 127. United States Senate, Subcommittee 68. President’s Foreign Intelligence Advi- 110. FBI memorandum, [title redacted], on Administrative Oversight and the Courts sory Board. Science at its Best; Security at from FBI National Security Division to FBI– of the Committee on the Judiciary, ‘‘Con- its Worst, June 1999, 30–31. AQ, dated December 10, 1998: 1–2. tinuation of Oversight of the Wen Ho Lee 69. Thompson and Lieberman Statement, 111. PFIAB, 34. Case,’’ 106th Congress, 2nd Session, 27 Sep- 6–7. 112. See the undated, unsigned memo- tember 2000: 62. [Hereafter, 27 September 2000 70. X-Division Open LAN Rules of Use, Exe- randum provided to the subcommittee by the hearing] cuted by Dr. Wen Ho Lee on April 19, 1995. FBI Office of Congressional Affairs in De- 128. 27 September 2000 hearing: 62–63. 71. United States Senate, Senate Select cember 1999. 129. FBI Assistant Director for National Committee on Intelligence, testimony of FBI 113. See the undated, unsigned memo- Security Neil Gallagher, Memorandum of 18 Director Louis J. Freeh at a ‘‘Closed Hear- randum provided to the subcommittee by the December 1998: 1. ing,’’ May 19, 1999: 34. FBI Office of Congressional Affairs in De- 130. 27 September 2000 hearing: 32. 72. Thompson and Lieberman Statement, 9. cember 1999. 131. United States Senate, Senate Select 73. ‘‘Richardson Announces Results of In- 114. See the undated, unsigned memo- Committee on Intelligence, ‘‘Closed Hear- quiries Related to Espionage Investigation,’’ randum provided to the subcommittee by the ing,’’ 106th Congress, 2nd Session, May 19, Department of Energy News Release, August FBI Office of Congressional Affairs in De- 1999: 7. 12, 1999. cember 1999. 132. FBI Supervisory Special Agent C.H. 74. Thompson and Lieberman Statement, 9. 115. FBI EC from Albuquerque to FBIHQ, Middleton to Ms. Horan, dated January 21, 75. This list has been extracted from the dated December 8, 1998: 1. 1999: 2. August 5, 1999, Statement by Senate Govern- 116. See the letter of DOE Assistant Sec- 133. DOE IG Gregory H. Friedman, letter to mental Affairs Committee Chairman Fred retary for Congressional and Intergovern- Senator Arlen Specter of October 2, 2000, en- Thompson and Ranking Minority Member mental Affairs John Angell to Senator Arlen closing a declassified segment of a 1999 Re- Joseph Lieberman, Department of Energy, Specter of December 20, 2000, which encloses port by the IG. This information comes from FBI, and Department of Justice Handling of answers prepared by Mr. Curran to follow-up page 113 of the full report. Espionage Investigation into the Com- questions from the September 27, 2000 hear- 134. DOE IG Gregory H. Friedman, letter to promise of Design Information on the W–88 ings of the Judiciary Subcommittee on Ad- Senator Arlen Specter of October 2, 2000, en- Warhead, 14–17. ministrative Oversight and the Courts. closing a declassified segment of a 1999 Re- 76. Hydrodynamics is a science that is rel- 117. It is troubling that the level of atten- port by the IG. This information comes from evant to the development of nuclear weapons tion paid to Dr. Lee’s activities in 1998 was page 115 of the full report. designs. so low, and the coordination between DOE 135. DOE IG Gregory H. Friedman, letter to 77. See Redacted Transcript, 35 and 88. and FBI was so poor, that counterintel- Senator Arlen Specter of October 2, 2000, en- 78. Bellows Report, 482. ligence personnel did not even learn of his closing a declassified segment of a 1999 Re- 79. Redacted Transcript, 118–119. previous trip to Taiwan, in March-April 1998, port by the IG. This information comes from 80. Redacted Transcript, 52. In a March 6, until after he was already out of the United page 116 of the full report. 2000 letter from Assistant Attorney General States. 136. Deposition of Supervisory Special Robert Rabin to Senator Hatch, the Depart- 118. See the letter of DOE Assistant Sec- Agent Craig Schmidt by Mr. Eric George of ment of Justice takes issue with this state- retary for Congressional and Intergovern- the Senate Committee on the Judiciary ment, and quotes Senator Kyl’s testimony mental Affairs John Angell to Senator Arlen staff, 29 July 1999: 91. on the subject: ‘‘So it would be your view Specter of December 20, 2000, which encloses 137. U.S. Department of Energy that [the language quoted in the draft re- answers prepared by Mr. Curran to follow-up Psychophysiological Detection of Deception port] is a summary that probably overstates questions from the September 27, 2000 hear- (PDD) Examination Report, File #99–2A–003, the Justice Department’s requirements for ing of the Judiciary Subcommittee on Ad- December 23, 1998, statement of Wolfgang the FBI? The Attorney General responded: ministrative Oversight and the Courts. Vinskey. ‘‘That is correct.’’ Transcript of June 8, 1999 119. See the letter of DOE Assistant Sec- 138. U.S. Department of Energy at 49.’’ [sic] For the actual exchange, see retary for Congressional and Intergovern- Psychophysiological Detection of Deception page 53 of the June 8, 1999 transcript. mental Affairs John Angell to Senator Arlen (PDD) Examination Report, File #99–2A–003, 81. Redacted Transcript, 52. Specter of December 20, 2000, which encloses December 23, 1998, statement of John P. 82. Redacted Transcript, 52. answers prepared by Mr. Curran to follow-up Mata. 83. Unclassified excerpt of Mr. Seikaly’s questions from the September 27, 2000 hear- 139. John P. Mata, memorandum testimony before the Senate Select Com- ing of the Judiciary Subcommittee on Ad- ‘‘Psychophysiological Detection of Decep- mittee on Intelligence, May 1999. ministrative Oversight and the Courts. tion (PDD) Examination of Wen Ho Lee,’’ for 84. Bellows Report, 548. 120. See 1999 Report of DOE Inspector Gen- Edward Curran, December 28, 1998: 3–4. 85. Redacted Transcript, 49. eral regarding Dr. Lee’s clearance and ac- 140. This memo was undoubtedly after Mr. 86. Redacted Transcript, 49. cess, 101. Mata received a call from Ed Curran who was

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00046 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S13819 told on December 14, 1999 of an FBI docu- port by the IG. This information comes from this statement to Mr. Trulock, and I cat- ment which said that the FBI had not ini- page 116 of the full report. egorically deny that I shared Mr. Lee’s name tially been able to get access to the charts, 168. Assistant Secretary of Energy for Con- with Mr. Risen.’’ Secretary Richardson made per instructions from Ed Curran. gressional and Intergovernmental Affairs the same denials to Senator Specter in a 141. John P. Mata, Memorandum for the John Angell, letter to Senator Grassley re- meeting on October 5, 2000, but a review of Record, ‘‘Recollection of Events Regarding sponding to questions from Senator Arlen the articles in question shows that Secretary DOE Polygraph Examination of Wen Ho Lee, Specter after a hearing before the Judiciary Richardson gave an on the record interview December 23, 1998,’’ December 21, 1999: 2. Subcommittee on Administrative Oversight in which he named Dr. Lee and made several 142. John P. Mata, Memorandum for the and the Courts on September 27, 2000: 17. comments about his lack of cooperation. Al- Record, ‘‘Recollection of Events Regarding 169. Undated FBI response to questions for though Dr. Lee’s name had first appeared in DOE Polygraph Examination of Wen Ho Lee, the record from Senator Arlen Specter fol- the press in an AP article the day before, December 23, 1998,’’ December 21, 1999: 2. lowing a hearing of the Senate Judiciary Secretary Richardson confirmed on the 143. John P. Mata, Memorandum for the Subcommittee on Department of Justice record that Dr. Lee was the individual who Record, ‘‘Recollection of Events Regarding Oversight, ‘‘Continuation of Oversight on the had been fired for security violations. DOE Polygraph Examination of Wen Ho Lee, Wen Ho Lee Case,’’ of September 27, 2000: 1. 181. See, for example, the September 28, December 23, 1998,’’ December 21, 1999: 2. 170. FBI Chronology of Wen Ho Lee Inves- 1999 press release from the FBI National 144. OCI Polygraph Program Manager tigation 1999–2000: 12. Press Office which states that Special Agent David M. Renzleman, Polygraph Program 171. Transcript of Proceedings, 118. in Charge Steve Dillard ‘‘has been appointed Record of Quality Assurance, undated, 1. 172. For a detailed discussion of Dr. Lee’s as Inspector in Charge of a task force com- 145. OCI Polygraph Program Manager deletions and his call to the computer help posed of FBI Special Agents and analysts David M. Renzleman, Polygraph Program line, see ‘‘Transcript of Proceedings, Motion that will investigate the possible theft or Record of Quality Assurance, undated, 2. Hearing, December 27, 1999,’’ United States compromise of classified information from 146. See FBI Headquarters internal memo of America vs. Wen Ho Lee, pages 132–138. United States nuclear laboratories. . . .’’ dated February 2, 1999 and or February 6, 173. Transcript of Proceedings, 146. The full text of the press release is available 1999 on the same subject. 174. Thompson and Lieberman Statement, at http://www.fbi.gov/pressrm/pressrel/dil- 147. United States Senate, Committee on 26. lard.htm. Governmental Affairs, Testimony from June 175. For a detailed discussion of the com- 182. Attorney General Janet Reno and FBI 9, 1999 closed hearing: 145. puter code issue, see the transcript of Attor- Director Louis Freeh, letter to Senator Orrin 148. Undated FBI response to questions for ney General Reno’s testimony before the Hatch, October 1, 1999: 1. the record submitted by Senator Arlen Spec- Senate Judiciary Committee on June 8, 1999, 183. FBI Albuquerque EC to FBI HQ of Jan- ter following the Senate Judiciary Sub- 108–109 {as numbered in the lower-right-hand uary 22, 1999: 2. committee on Department of Justice Over- corner}. 184. FBI Albuquerque EC to FBI HQ of Jan- sight hearing, ‘‘Continuation of Oversight on 176. Matthew Purdy and James Sterngold, uary 22, 1999: 3–4. the Wen Ho Lee Case,’’ on September 27, 2000: ‘‘The Prosecution Unravels: The Case of Wen 185. He made similar representations in 1. Ho Lee,’’ New York Times, February 5, 2001, other briefings provided to Senate staff. 149. FBI ASAC William Lueckenhoff, online edition. 186. Gallagher, letter of November 10, 1. memorandum to DAD Sheila Horan, Feb- 177. Matthew Purdy, ‘‘The Making of a Sus- 187. Gallagher, letter of November 10, 2. ruary 26, 1999: 1. pect: The Case of Wen Ho Lee,’’ New York 188. Robert H. Hast, Managing Director of 150. DOE IG Gregory H. Friedman, letter to Times, February 4, 2001, online edition. Un- the General Accounting Office’s Office of Senator Arlen Specter of October 2, 2000, en- less otherwise noted, the description of the Special Investigations, letter to Senators closing a declassified segment of a 1999 Re- government’s actions in the first week of Arlen Specter, Charles Grassley and Robert port by the IG. This information comes from March 1999 is taken from this article. Torricelli, ‘‘Subject: FBI Official’s Congres- page 116 of the full report. 178. Matthew Purdy, ‘‘The Making of a Sus- sional Testimony Was Inaccurate Because He 151. FBI Assistant Director Neil J. Galla- pect: The Case of Wen Ho Lee,’’ New York Failed to Present Certain Information That gher, letter to Mr. Edward J. Curran of Janu- Times, February 4, 2001, online edition. Had Been Made Available to Him About the ary 4, 2000: 1. 179. In his written statement to the Joint Wen Ho Lee Investigation,’’ of June 28, 2001: 152. Ian Hoffman, ‘‘Lee Denied Bail; Court Hearing of the Senate Select Committee on 1. Cites Risk,’’ Albuquerque Journal, December Intelligence and the Judiciary Committee on 189. FBI Albuquerque, ‘‘Changed: FBI–DOE 30, 1999: A1. September 26, 2000, Director Freeh said, ‘‘One National Laboratory Assessment. . . .’’ July 153. Sharyl Attkisson, ‘‘Wen Ho Lee’s Prob- approach that was taken during that inter- 9, 1999: 6. lematic Polygraph,’’ February 4, 2000, view was not consistent with the conduct ex- 190. FBI Albuquerque, ‘‘Changed: FBI–DOE accessed at http://www.cbsnews.com/now/ pected of agents during an interview. Spe- National Laboratory Assessment. . . .’’ Au- story/0,1597,157220-412,00.shtml. [Hereafter, cifically, Dr. Lee was reminded of the fate of gust 26, 1999: 6–7. ‘‘Wen Ho Lee’s Problematic Polygraph’’] Julius and Ethel Rosenberg, who were exe- 191. See ‘‘DCI Statement on Damage As- 154. ‘‘Wen Ho Lee’s Problematic Poly- cuted for espionage. Confrontational inter- sessment,’’ at http://www.cia.gov/cia/pub- graph.’’ views often call for tough statements by in- liclaffairs/ presslrelease/ps042199.html, and 155. ‘‘Wen Ho Lee’s Problematic Poly- vestigators, but that implication was inap- the ‘‘Key Findings’’ at http://www.cia.gov/cia/ graph.’’ propriate. Again, Dr. Lee ended the inter- publiclaffairs/ presslrelease/0421kf.html. 156. ‘‘Wen Ho Lee’s Problematic Poly- view without providing any useful informa- 192. Cox Committee Report, Vol 1, 68. graph.’’ tion and without giving any indication of the 193. Cox Committee Report, Vol 1, 83–84. 157. Dr. Michael Capps, Deputy Director of actions to which he has now pled guilty.’’ 194. According to a chronology prepared by Developmental Programs, Defense Security When asked by Senator Specter at the Sep- the Justice Department, the discovery oc- Service, letter to Senator Arlen Specter of tember 26 hearing about the Rosenberg ref- curred on March 23, 1999. That it took more June 25, 2001: 1. [Hereafter, Capps letter] erence and the harsh conditions of confine- than two weeks after Dr. Lee had been dis- 158. Capps letter, 2–3. ment and the inference that these measures missed from LANL (and nearly three weeks 159. Capps letter, 3. might be intended to coerce a confession, Di- after he gave permission to search his office) 160. Capps letter, 4. rector Freeh responded, ‘‘I would disagree to find this document is very troubling. 161. Richard W. Keifer, letter to Senator very strongly with the suggestion or the no- 195. United States Senate, Joint Hearing of Arlen Specter of June 26, 2001, ‘‘Your letter tion that anything was done with respect to the Senate Select Committee on Intelligence of May 22, 2001 regarding the Dr. Wen Ho Lee confinement, or anything else in this case, to and the Senate Judiciary Committee, ‘‘Joint polygraph Examination on December 23, improperly or unfairly treat Dr. Lee.’’ See Hearing on the Wen Ho Lee Case,’’ 106th Con- 1998,’’ 1. [Hereafter, Keifer letter.] hearing transcript, 81. gress, 2nd Session, September 26, 2000: 52. 162. Keifer letter, 3. 180. For a discussion of the issue of how Dr. 196. FBI Director Louis J. Freeh, ‘‘STATE- 163. Keifer letter, 3. Lee’s name was leaked to the press, see MENT BY FBI DIRECTOR LOUIS J. 164. Keifer letter, 5. pages 53, 54, 64 and 65 of the transcript of the FREEH,’’ September 13, 2000: 2. 165. Assistant Attorney General Daniel J. Senate Judiciary Subcommittee on Depart- 197. Transcript of Proceedings, United Bryant, letter to Senator Patrick Leahy and ment of Justice Oversight hearing on Octo- States v. Wen Ho Lee, September 13, 2000: 34– Senator Arlen Specter of June 28, 2001. ber 3, 2000, during which Mr. Trulock says 37. 166. FBI ‘‘Chronology of Significant Events that NYT reporter James Risen told him 198. Transcript of Proceedings, United Between 12/23/98 and 2/10/99,’’ prepared for use that Energy Secretary Richardson leaked States v. Wen Ho Lee, September 13, 2000: 48– by FBI Director Louis Freeh at a joint hear- Dr. Lee’s name to the media. Secretary Rich- 50. ing of the Senate Select Committee on Intel- ardson vehemently denied being the source 199. Although the subcommittee has not ligence and the Senate Judiciary Committee of the leak, both in a letter to Senator Hatch had access to the files from the criminal case on September 26, 2000: 1. [Hereafter, FBI Un- on October 3, 2000, in which he said he had re- against Dr. Lee, it should be noted that none classified Chronology.] ceived a letter from Senator Specter request- of the information otherwise available sug- 167. DOE IG Gregory H. Friedman, letter to ing a hearing on the basis of Mr. Trulock’s gests that the government applied for a Title Senator Arlen Specter of October 2, 2000, en- statement. In reply, Secretary Richardson III wiretap between March and December closing a declassified segment of a 1999 Re- said, ‘‘Mr. Risen has denied that he made 1999. If the government was concerned that

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00047 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S13820 CONGRESSIONAL RECORD — SENATE December 20, 2001 he might somehow communicate the exist- 225. United States Senate, Joint Hearing 246. Memorandum from Lawrence Barreras, ence of the tapes to a third party, it should before the Senate Select Committee on In- Senior Warden to Rick Ploof, Supervisor have requested a wiretap. It may be that the telligence and the Senate Judiciary Com- Deputy United States Marshal For Prisoner wiretap was requested and received, but the mittee, ‘‘Joint Hearing on the Wen Ho Lee Operations dated December 14, 1999 re: High absence of any such request would strongly Case,’’ 106th Congress, 2nd Session, Sep- Security Supervision. undermine the government’s claim that re- tember 26, 2000: 63. 247. Memorandum from Lawrence Barreras, stricting his communications was necessary 226. There are a number of other issues Senior Warden to Rick Ploof dated January to protect the tapes. that raise questions as to whether the gov- 4, 2000 re: Segregation Inmates. 200. Unless otherwise noted, all the infor- ernment fully pursued all the information it 248. Mark Holscher, letter to John Kelly mation in this section is drawn from a chro- had available during the course of its inves- and Robert Gorence, ‘‘Re: Dr. Wen Ho Les,’’ nology prepared by the Department of Jus- tigation. These questions were identified in a of December 21, 1999: 1. tice and forwarded to the Senate Judiciary June 27, 2001 letter from senators Patrick 249. Energy Secretary William Richardson, Committee on June 22, 2001. Leahy and Arlen Specter to Attorney Gen- letter to Attorney General Janet Reno, ‘‘Re: 201. Mark Holscher, letter to Robert eral Ashcroft. With the exception of con- United States v. Wen Ho Lee,’’ of December Gorence and John Hudenko, of March 10, firming that Dr. Lee has told investigators 27, 1999: 1. 1999: 1. [DOJ–WHL–00001–00002] that the tapes were still in his office as of 250. United States Marshal John S. San- 202. FBI Chronology of Wen Ho Lee inves- December 23, 1998, however, the Department chez, letter to Warden Lawrence Barreras, tigation from 1999–2000: 2. continues to refuse to answer these ques- ‘‘Re: Federal Inmate Wen Ho Lee,’’ of Janu- 203. Mark Holscher, letter to John Kelly, of tions on the ground that the case is still ary 6, 2000: 1–2. March 19, 1999: 1–2. [DOJ–WHL–00005–00006] open. 251. Mr. John D. Cline, letter to Mr. Robert 204. The Chronology of Wen Ho Lee inves- 227. United States Senate, Joint Hearing Gorence, ‘‘Re: United States v. Wen Ho Lee,’’ tigation from 1999–2000 says this is discov- before the Senate Select Committee on In- of January 6, 2000: 1. ered on March 21, 1999. See Chronology, 2. telligence and the Senate Judiciary Com- 252. Principal Associate Deputy Attorney 205. Mark Holscher, letter to John Kelly, of mittee, ‘‘Joint Hearing on the Wen Ho Lee General Gary G. Grindler, ‘‘MEMORANDUM March 23, 1999: 1–2. [DOJ–WHL–00009–00010] Case,’’ 106th Congress, 2nd Session, Sep- 206. Mark Holscher, letter to FBI Director FOR THE ATTORNEY GENERAL and THE tember 26, 2000: 83. Louis J. Freeh, of March 23, 1999: 1–3. [DOJ– DEPUTY ATTORNEY GENERAL,’’ January 228. In response to a question from staff on 12, 2000: 1. WHL–00011–00013] July 5, 2001, Sheryl Walter of DOJ’s Office of 207. Mark Holscher, letter to Robert 253. See Attorney General Janet Reno, Legislative Affairs confirmed that Dr. Lee Gorence, of March 29, 1999: 1. [DOJ–WHL– ‘‘MEMORANDUM FOR JOHN W. MAR- had never been the target of electronic sur- 00014] SHALL, SUBJECT: Origination of Special 208. For a discussion of the debate between veillance. Administrative Measures of Confinement 229. Transcript of a closed Detention hear- FBI and DOJ after Lee’s computer was Conditions on Federal Government Pre-Trial ing on December 29, 1999, United States v. searched, see Thompson and Lieberman Detainee Wen Ho Lee,’’ of January 13, 2000: 1. Wen Ho Lee, 59. Statement, 27–29. 254. Energy Secretary Bill Richardson, let- 209. Thompson and Lieberman Statement, 230. FBI Chronology of Investigation from ter to Attorney General Janet Reno of May 28–29. 1999–2000: 6. 4, 2000: 1. 210. Thompson and Lieberman Statement, 231. Judge James A. Parker, ‘‘MEMO- 255. FBI Special Agent in Charge David V. 28. RANDUM OPINION AND ORDER,’’ United Kitchen, letter to Norman C. Bay of May 2, 211. In view of DOJ’s assertion that it States v. Wen Ho Lee, December 30, 1999: 7. 2000: 1. never had any sort of wiretap on Dr. Lee, 232. Judge James A. Parker, ‘‘MEMO- 256. See the letter of Warden Barreras to this likely refers to FISA material from the RANDUM OPINION AND ORDER,’’ United Mr. Stamboulidis of July 18, 2000, in which investigation of the other scientist to whom States v. Wen Ho Lee, December 30, 1999: 7. he notes that per their telephone conversa- Dr. Lee spoke by telephone in December 1982. 233. Robert J. Gorence, ‘‘RESPONSE TO tion and the letter of July 17 from Mr. 212. John Kelly and Robert Gorence, letter DEFENDANT WEN HO LEE’S MOTION TO Stamboulidis, the Warden has removed Dr. to Mark Holscher of April 16, 1999: 1–2. [DOJ– REVOKE JUDGE SVET’S ORDER OF DE- Lee’s restraints during exercise, but has de- WHL–00015–00016] TENTION,’’ United States v. Wen Ho Lee, clined to allow weekend recreation time as it 213. FBI Chronology of Wen Ho Lee inves- December 23, 1999: 18. will involve additional staff costs. 234. Robert J. Gorence, ‘‘RESPONSE TO tigation from 1999–2000: 5. 257. See, for example, the letter of Mr. DEFENDANT WEN HO LEE’S MOTION TO 214. FBI Chronology of Wen Ho Lee Inves- John Cline to Mr. Stamboulidis of July 26, REVOKE JUDGE SVET’S ORDER OF DE- tigation from 1999–2000: 6. 2000, in which Mr. John Kline says that in TENTION,’’ United States v. Wen Ho Lee, 215. John Kelly and Paula Burnett, letter the two weeks since Mr. Stamboulidis December 23, 1999: 7–8. to Brian Sun, of May 5, 1999: 1–2. [DOJ–WHL– claimed in open court that Dr. Lee would be 235. Robert J. Gorence, ‘‘RESPONSE TO 0017–0018] permitted to exercise without restraints, Dr. DEFENDANT WEN HO LEE’S MOTION TO 216. Brian Sun, letter to John Kelly and Lee had not, in fact been allowed to do so. REVOKE JUDGE SVET’S ORDER OF DE- Paula Burnett, of May 6, 1999: 1–2. [DOJ– 258. Warden Lawrence Barreras, letter to TENTION,’’ United States v. Wen Ho Lee, WHL–00021–00022] Mel George Stamboulidis of August 1, 2000. 217. FBI Chronology of Wen Ho Lee inves- December 23, 1999: 14. 259. United States Attorney Norman C. tigation from 1999–2000: 7. 236. Judge James A. Parker, ‘‘MEMO- Bay, letter to Attorney General Janet Reno 218. John Kelly, letter to Mark Holscher, of RANDUM OPINION AND ORDER,’’ United of September 7, 2000: 2. June 15, 1999: 1–2. [DOJ–WHL–00030–00031] States v. Wen Ho Lee, December 30, 1999: 1. 219. FBI Chronology of Wen Ho Lee inves- 237. Judge James A. Parker, ‘‘MEMO- 260. United States Senate, Joint Hearing of tigation from 1999–2000: 8–9. RANDUM OPINION AND ORDER,’’ United the Senate Select Committee on Intelligence 220. No subpoenas were issued pursuant to States v. Wen Ho Lee, December 30, 1999: 10. and the Senate Judiciary Committee, ‘‘Joint these resolutions because the investigation 238. Judge James A. Parker, ‘‘MEMO- Hearing on the Wen Ho Lee Case,’’ 106th Con- into the Wen Ho Lee case was suspended in RANDUM OPINION AND ORDER,’’ United gress, 2nd Session, September 26, 2000: 75. December at the request of Director Freeh States v. Wen Ho Lee, December 30, 1999: 10– 261. United States Senate, Judiciary Sub- and the Department of Justice. The resolu- 11. committee on Department of Justice Over- tions were intended as temporary measures 239. Judge James A. Parker, ‘‘MEMO- sight, ‘‘Continuation of Oversight on the to ensure that the subcommittee could con- RANDUM OPINION AND ORDER,’’ United Wen Ho Lee Case,’’ 106th Congress, 2nd Ses- tinue its work during the congressional re- States v. Wen Ho Lee, December 30, 1999: 12– sion, October 3, 2000: 73. cess. When the Senate returned the following 13. See United States Senate, Joint Hearing of January, several other individual subpoenas 240. Judge James A. Parker, ‘‘MEMO- the Senate Select Committee on Intelligence on matters under investigation by the sub- RANDUM OPINION AND ORDER,’’ United and the Senate Judiciary Committee, ‘‘Joint committee were, in fact, debated and voted States v. Wen Ho Lee, December 30, 1999: 13. Hearing of the Wen H. Lee Case,’’ 106th Con- on. No subpoena requested by the sub- 241. Judge James A. Parker, ‘‘MEMO- gress, 2nd Session, September 26, 2000: 79–80, committee was defeated in the full com- RANDUM OPINION AND ORDER,’’ United where Attorney General Reno read Mr. mittee. States v. Wen Ho Lee, December 30, 1999: 14. Cisneros’ letter into the record. 221. Walter Pincus and David A. Vise, 242. Judge James A. Parker, ‘‘MEMO- 263. Assistant Attorney General Robert ‘‘Blunders Undermined Lee Case,’’ Wash- RANDUM OPINION AND ORDER,’’ United Raben, letter to Senators Leahy, Graham, ington Post, September 24, 2000: Al. States v. Wen Ho Lee, December 30, 1999: 14. Hatch And Shelby, of January 20, 2001: 1. 222. Senator Arlen Specter, letter to FBI 243. Judge James A. Parker, ‘‘MEMO- 264. Assistant Attorney General Robert Director Louis J. Freeh of December 7, 1999. RANDUM OPINION AND ORDER,’’ United Ruben, letter to Senators Leahy, Graham, 1–2. States v. Wen Ho Lee, December 30, 1999: 16. Hatch and Shelby, of January 20, 2001: 2. 223. FBI Director Louis J. Freeh, letter to 244. Judge James A. Parker, ‘‘MEMO- 265. Assistant Attorney General Robert Senator Arlen Specter of December 10, 1999: RANDUM OPINION AND ORDER,’’ United Ruben, letter to Senators Leahy, Graham, 1. States v. Wen Ho Lee, December 30, 1999: 19. Hatch and Shelby, of January 20, 2001: 2. 224. Director Freeh letter of December 10, 245. Taken from the ‘‘Overview’’ section of 66. Plea Hearing transcript, September 13, 1999: 1–2. the website, http://wenholee.org/ 2000: 55.

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00048 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S13821 267. Transcript of Proceedings, United 288. MEMORANDUM IN SUPPORT OF MO- 305. FBI memorandum from Albuquerque States v. Wen Ho Lee, August 16, 2000: 13. TION FOR DISCOVERY OF MATERIALS Division to FBI HQ, ‘‘Request for: (1) FISA 268. Transcript of Proceedings, United RELATED TO SELECTIVE PROSECUTION, Court Order authorizing the interception of States v. Wen Ho Lee, August 17, 2000: 12. United States v. Wen Ho Lee, June 25, 2000: signals emanating from the residence of cap- 269. Transcript of Proceedings, United 1. [Hereafter Selective Prosecution Memo- tioned subject; (2) Application for ELSUR States v. Wen Ho Lee, August 17, 2000: 92. randum] (FISA and MISUR coverage) at subject’s res- 270. Judge James A. Parker, ‘‘MEMO- 289. Selective Prosecution Memorandum, 2. idence and business location,’’ November 10, RANDUM OPINION,’’ United States v. Wen 290. Selective Prosecution Memorandum, 2– 1998: 4. [Hereafter, FISA Request, November Ho Lee, August 31, 2000: 3. 3. 10, 1998] 271. Judge James A. Parker, ‘‘MEMO- 291. Plea Hearing, September 13, 2000: 50. 306. FISA Request, November 10, 1998: 4. RANDUM OPINION,’’ United States v. Wen 292. See DOE press release, ‘‘Richardson 307. FISA Request, November 10, 1998: 5. Ho Lee, August 31, 2000: 10. Releases Task Force Against Racial 308. FISA Request, November 10, 1998: 5. 272. Judge James A. Parker, ‘‘MEMO- Profiling Report and Announces 8 Immediate 309. FISA Request, November 10, 1998: 5. RANDUM OPINION,’’ United States v. Wen Actions,’’ January 19, 2001. Richardson said 310. Selective Prosecution Memorandum, 7. Ho Lee, August 31, 2000: 14–15. that the Task Force had made several gen- 311. FBI Special Agent Michael W. Lowe, 273. ‘‘STATEMENT OF THE FACTS,’’ from eral observations, including ‘‘that some em- ‘‘APPLICATION AND AFFADIVIT FOR the Government’s public filing in response to ployees believed that counterintelligence ef- SEARCH WARRANT,’’ April 9, 1999: 1. the defense appeal of Judge Parker’s initial forts were targeting employees of Chinese 312. See RESPONSE TO DEFENDANT denial of bail, undated, 3–6. ethnicity,’’ but offered no direct proof of any WEN HO LEE’S MOTION FOR DISCOVERY 274. Transcript of Proceedings, United such profiling. OF MATERIALS RELATED TO SELECTIVE States v. Wen Ho Lee, August 16, 2000: 142. 293. Department of Energy Inspector Gen- PROSECUTION, United States v. Wen Ho 275. Transcript of Proceedings, United eral Gregory Friedman, Memorandum for the Lee, July 21, 2000: 11–12. States v. Wen Ho Lee, August 16, 2000: 150. Secretary, ‘‘Special Review of Profiling Con- 313. ‘‘A Reply to Misleading Press Reports 276. United States Senate, Hearing before cerns at the Department of Energy,’’ April 3, Concerning Dr. Wen Ho Lee,’’ May 6, 2000. the Senate Judiciary Subcommittee on De- 2001: 1. 314. This is item D. of the ‘‘Memorandum partment of Justice Oversight, ‘‘Continu- 294. Selective Prosecution Memorandum, 5. in Support of Motion to Compel Discovery on ation of Oversight on the Wen Ho Lee Case,’’ 295. Selective Prosecution Memorandum, 5. Issues other Than Selective Prosecution,’’ 106th Congress, 2nd Session, October 3, 2000: 296. For a discussion of the timing and rea- filed May 10, 2000. Note that the declassified 17. sons for Mr. Trulock’s departure from DOE, version of this document redacts must of 277. United States Senate, Hearing before see James Risen, ‘‘Official Who Led Inquiry Item D, including the header, but the Gov- the Senate Judiciary Subcommittee on De- Into China’s Reputed Theft of Nuclear Se- ernment’s response spells out the materials partment of Justice Oversight, ‘‘Continu- crets Quits,’’ New York Times, August 24, in question. ation of Oversight on the Wen Ho Lee Case,’’ 1999, online edition. 315. ‘‘Memorandum in Support of Motion to 106th Congress, 2nd Session, October 3, 2000: 297. Selective Prosecution Memorandum, 6. Compel Discovery on Issues Other Than Se- 24. 298. Matthew Purdy and James Sterngold, lective Prosecution,’’ United States v. Wen 278. United States Senate, Hearing before ‘‘The Prosecution Unravels: The Case of Wen Ho Lee, May 10, 20001: 14. the Senate Judiciary Subcommittee on De- Ho Lee,’’ New York Times, February 5, 2001, 316. ‘‘Response to Defendant Wen Ho Lee’s partment of Justice Oversight, ‘‘Continu- online edition. Motion to Compel Discovery on Issues Other ation of Oversight on the Wen Ho Lee Case,’’ 299. When questioned in an October 3, 2000 than Selective Prosecution, United States v. 106th Congress, 2nd Session, October 3, 2000: hearing about an August 1995 FBI document Wen Ho Lee, June 9, 2000: 6. 26. quoting Mr. Vrooman as saying that ‘‘a 317. Judge James A. Parker, ‘‘ORDER,’’ 279. Matthew Purdy and James Sterngold, ‘smoking gun’ had been found,’’ Mr. July 13, 2000: 3. [Docket number 107 on the ‘‘The Prosecution Unravels: The Case of Wen Vrooman testified that he did not know what case docket] Ho Lee,’’ New York Times, February 4, 2001: the memo referred to. After the hearing, Mr. 318. Judge James A. Parker, ‘‘ORDER,’’ online edition. Vrooman refreshed his recollection and August 9, 2000: 1–2. [Docket number 130] 280. Matthew Purdy and James Sterngold, wrote to me that the ‘‘smoking gun’’ quote 319. Matthew Purdy, ‘‘The Making of a Sus- ‘‘The Prosecution Unravels: The Case of Wen referred to the analytical team headed by pect: The Case of Wen Ho Lee,’’ New York Ho Lee,’’ New York Times, February 4, 2001: Mr. Michael Henderson, otherwise known as Times, February 4, 2001: online edition. online edition. the Kindred Spirit Analytical Group. 320. Transcript of Proceedings, Plea Hear- 281. United States Senate, Hearing before 300. United States Senate, Hearing before ing, United States v. Wen Ho Lee, September the Judiciary Subcommittee on Department the Senate Judiciary Subcommittee on De- 13, 2000: 34. of Justice Oversight, ‘‘Continuation of Over- partment of Justice Oversight, ‘‘Continu- 321. Transcript of Proceedings, Plea Hear- sight on the Wen Ho Lee Case,’’ 106th Con- ation of Oversight on the Wen Ho Lee Case,’’ ing, United States v. Wen Ho Lee, September gress, 2nd Session, September 27, 2000: 57. October 3, 2000: 65. 13, 2000: 34–36. 282. United States Senate, Hearing before 301. United States Senate, Hearing before 322. Transcript of Proceedings, Plea Hear- the Judiciary Subcommittee on Department the Senate Judiciary Subcommittee on De- ing, United States v. Wen Ho Lee, September of Justice Oversight, ‘‘Continuation of Over- partment of Justice Oversight, ‘‘Continu- 13, 2000: 36. sight on the Wen Ho Lee Case,’’ 106th Con- ation of Oversight on the Wen Ho Lee Case,’’ 323. Transcript of Proceedings, Plea Hear- gress, 2nd Session, September 27, 2000: 58. October 3, 2000: 66. ing, United States v. Wen Ho Lee, September 302. Mr. Vrooman furnished this retirement 283. Matthew Purdy and James Sterngold, 13, 2000: 37. date in his written testimony to the sub- ‘‘The Prosecution Unravels: The Case of Wen 324. Transcript of Proceedings, Plea Hear- committee on October 3, 2000. He obviously Ho Lee,’’ New York Times, February 5, 2001, ing, United States v. Wen Ho Lee, September stayed in touch with the lab and may have online edition. See also, MEMORANDUM 13, 2000: 37. CONCERNING THE USE, RELEVANCE, consulted on certain security issues, but his 325. Plea Hearing transcript, September 13, AND ADMISSIBILITY OF THE INFORMA- contact with the case would have been less 2000: 56–57, TION LISTED IN DR. WEN HO LEE’S FIRST than during his tenure at the lab. 326. United States, Joint Hearing Before 303. See Department of Energy Press Re- NOTICE UNDER SECTION 5 OF THE CLAS- the Senate Select Committee on Intelligence lease, ‘‘Richardson Announces Results of In- SIFIED INFORMATION PROCEDURES ACT. and the Judiciary Committee, ‘‘Joint Hear- quiries Related to Espionage Investigation,’’ 284 Judge James A. Parker, ‘‘COURT DE- ing on the Wen Ho Lee Case,’’ 106th Congress, August 12, 1999. The release says that a DOE TERMINATIONS AND ORDER ON FIRST 2nd Session, September 26, 2000: 41. counterintelligence official had been told in NOTICE OF DR. WEN HO LEE UNDER SEC- 327. United States Senate, Joint Hearing October 1997 that an espionage suspect [Dr. TION 5 OF THE CLASSIFIED INFORMA- Before the Senate Select Committee on In- Lee] should be moved but decided to leave TION PROCEDURES ACT,’’ August 1, 2000: 3. telligence and the Judiciary Committee, the suspect in place without consulting with 285. Judge James A. Parker, ‘‘COURT DE- ‘‘Joint Hearing on the Wen Ho Lee Case,’’ senior management. The DOE press release TERMINATIONS AND ORDER ON FIRST 106th Congress, 2nd Session, September 26, does not name Mr. Vrooman or the others NOTICE OF DR. WEN HO LEE UNDER SEC- 2000: 41–43. TION 5 OF THE CLASSIFIED INFORMA- who were disciplined, but an August 13, 1999 TION PROCEDURES ACT,’’ August 1, 2000: 4. story by Vernon Loeb in the Washington Mr. SPECTER. Mr. President, I now 286. Judge James A. Parker, ‘‘COURT DE- Post identifies the three officials as Sig turn to the report on the handling of TERMINATIONS AND ORDER ON FIRST Hecker, Robert Vrooman, and Terry Craig. the espionage case against Dr. Peter H. NOTICE OF DR. WEN HO LEE UNDER SEC- See Vernon Loeb, ‘‘Richardson Recommends Lee: Again, I intend to read only a sen- TION 5 OF THE CLASSIFIED INFORMA- Discipline for 3 in Los Alamos Case,’’ Wash- tence or two, as I have been advised TION PROCEDURES ACT,’’ AUGUST 1, 2000: ington Post, August 13, 1999: A9. that a sentence or two would be suffi- 5. 304. United States Senate, Subcommittee 287. MOTION FOR DISCOVERY OF MATE- on Administrative Oversight and the Courts cient to have the remainder of the re- RIALS RELATED TO SELECTIVE PROS- of the Committee on the Judiciary, ‘‘Con- port printed in the RECORD. ECUTION, United States v. Wen Ho Lee, tinuation of Oversight on the Wen Ho Lee On October 7th and 8th, 1997, Dr. Peter June 25, 2000: 1. Case,’’ October 3, 2000: 52–53. Hoong-Yee Lee confessed to the FBI that he

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00049 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S13822 CONGRESSIONAL RECORD — SENATE December 20, 2001 had provided classified nuclear weapons de- portunities for misunderstandings would prosecutor had with regard to a charge under sign and testing information to scientists of have been greatly reduced, and the chances Section 794. DoJ officials advised that the In- the People’s Republic of China on two occa- of Dr. Lee receiving a long prison sentence ternal Security Section would have reconsid- sions in 1985 and had given classified antisub- commensurate with his crimes would have ered a prosecution under Section 794 if the marine information to the Chinese in May of been greatly increased. Specifically, the Sub- plea agreement broke down,9 which was un- 1997. The 1985 revelations, which occurred committee’s investigation showed that: known to the trial prosecutor who thought during discussions with, and lectures to, The classified nuclear weapons design and he could only take the watered-down plea PRC scientists in Beijing hotel rooms, in- anti-submarine warfare information that Dr. bargain or get nothing at all.10 volved his work on hohlraums, devices used Lee revealed in 1985, 1997, and on other occa- The fact that Dr. Lee was an espionage sus- to simulate nuclear detonations in a process sions may have merited prosecution under 18 pect while working on the Joint U.S./U.K. called Inertial Confinement Fusion, or ICF.1 USC 794, the most serious of the espionage Radar Ocean Imaging project was not dis- According to a 17 February 1998 ‘‘Impact statutes. closed to the program’s sponsors within the Statement’’ prepared by experts from the Senior DoJ officials, including the Attor- Office of the Assistant Secretary of Defense/ Department of Energy, ney General and the Deputy Attorney Gen- Command, Control, Communications and In- ‘‘the ICF data provided by Dr. Lee was of eral, were not sufficiently involved in or telligence (OASD/C3I).11 significant material assistance to the PRC in aware of the case. Principal Deputy Assist- Electronic surveillance under the Foreign their nuclear weapons development pro- ant Attorney General John Keeney, the offi- Intelligence Surveillance Act was termi- gram.... For that reason, this analysis in- cial with final approval authority in the nated at a critical juncture in September dicates that Dr. Lee’s activities have di- case, advised that he would not have ap- 1997, just when the FBI was stepping up its rectly enhanced the PRC nuclear weapons proved the plea bargain had he known the activity with regard to Dr. Lee and elec- program to the detriment of U.S. national trial prosecutor would ask for only a short tronic surveillance could have yielded impor- security.’’ 2 period of incarceration and would charge tant counter-intelligence information. Al- The ‘‘Impact Statement’’ further notes only an attempt to transmit classified infor- though the listening device in Dr. Lee’s that ‘‘the ICF Program, when developed in mation.8 home had been discovered in July, thereby conjunction with an already existing nuclear The Department of Justice’s ability to decreasing the utility of that particular de- program, could assist in the design of more seek a tougher plea agreement or to pros- vice, the FBI Field Office felt strongly sophisticated nuclear weapons.’’ 3 ecute Dr. Lee under section 794 was ham- enough about the need for continued surveil- Dr. Lee’s 1997 disclosures came in two lec- pered by its failure to fully understand the lance to make a verbal renewal request to tures to PRC scientists, again in China, classification level of, and the damage to na- FBI Headquarters in August, but not strong- where he discussed his work on the joint tional security from, Dr. Lee’s nuclear weap- ly enough to ensure the request was granted. U.S./U.K. Radar Ocean Imaging (ROI) ons design revelations prior to offering him a The problems which affected this case were project. The objective of the project, which plea agreement. serious enough to require remedial steps. has been carried out over several years at DoJ failed to inform the court that Dr. Lee The Counterintelligence Reform Act of 2000 the cost of more than $100 million, is to repeatedly confessed to disclosing classified (S.2089), which became law on 27 December study the feasibility of using radars to de- information to the PRC in 1997, allowing the 2000 as Title VI of Public Law 106–567 (H.R. tect submerged submarines. After viewing defense to convince the judge during sen- 5630), contained a provision that will address videotapes of Dr. Lee’s confession, Dr. Rich- tencing that the only time Dr. Lee inten- many of the shortcomings in the way the ard Twogood, former Technical Program tionally passed classified information was DoJ handled this case. That provision, Sec- Leader for the ROI project, stated that Dr. more than 13 years prior. tion 607, amended the Classified Information Lee’s disclosures contained classified infor- DoJ did not have the DoE’s ‘‘Impact State- Procedures Act (CIPA) to require that the mation at the SECRET level which went ment,’’ which stated that Dr. Lee had pro- Assistant Attorney General for the Criminal right to the heart of the most significant vided significant material assistance to the Division and the appropriate United States technical achievement of the U.S./U.K. pro- PRC nuclear weapons program, until Feb- attorney provide briefings to senior agency gram up until 1995.4 Although Dr. Lee was ruary 1998, well after the plea agreement was officials from the victim agency in cases in- not charged for the 1997 disclosures of classi- concluded. volving classified information. The section fied information, a 9 March 2000 review by The reluctance of the Department of De- further required that these briefings occur as the Department of Defense concluded that fense, and the Navy in particular, to support soon as practicable after the Department of Dr. Lee’s anti-submarine warfare revelations the prosecution of Dr. Lee for his anti-sub- Justice and the United States attorney con- were classified at the CONFIDENTIAL level,5 marine warfare revelations had an adverse cerned determine that a prosecution could which, by definition, would damage U.S. na- impact on the case. result and at such other times thereafter as tional security.6 According to the Cox Com- The ambiguity of the 14 November 1997 are necessary to keep the affected agency mittee Report, ‘‘this research, if successfully memorandum authored by Mr. J.G. Schuster, fully and currently informed of the status of completed, could enable the [Chinese mili- head of the Navy’s Science and Technology the prosecution. tary] to threaten previously invulnerable Branch, seriously undermined DoJ efforts to The Subcommittee’s investigation re- U.S. nuclear submarines.’’ 7 prosecute Dr. Lee. This memorandum was vealed other problems that have not yet been Dr. Lee’s confessed crimes caused serious based on incomplete information, without addressed through legislation, primarily be- harm to U.S. national security, yet he was knowing the details of what Dr. Lee con- cause it was not possible to reach a con- offered a plea bargain which resulted in a fessed to disclosing to PRC scientists. sensus on how best to solve them. The Coun- sentence amounting to one year in a half- DoJ prematurely determined that Dr. Lee terintelligence Reform Act moved through way house, 3,000 hours of community service could not be prosecuted for the 1997 revela- the Judiciary Committee and the Senate Se- and a $20,000 fine. Considering the magnitude tions, and the explanation that the informa- lect Committee on Intelligence without a of Dr. Lee’s offenses and his failure to adhere tion Dr. Lee revealed was already in the pub- single vote in opposition. The Judiciary to the terms of the plea agreement which lic domain is contradicted by two classified Committee reported the measure favorably called for complete cooperation and truthful- memoranda from Lawrence Livermore Na- on 23 May 2000 and the Intelligence Com- ness, the interests of the United States were tional Laboratory which show that the dis- mittee did the same on 20 July 2000. As the not well served by this outcome. closures extended beyond what was publicly bill’s chief sponsor, I opted to work toward a During the 106th Congress, I chaired a spe- available. consensus measure to ensure that the impor- cial subcommittee of the Senate Judiciary DoJ’s failure to prosecute on the 1997 dis- tant reforms we had identified during over- Committee for the purposes of conducting closures, or at least to add them as a sepa- sight on this case and the Dr. Wen Ho Lee oversight on the Department of Justice’s rate count to the plea agreement, had a ma- case could be implemented in a timely fash- handling of this case and several other mat- terial adverse effect on the disposition of the ion. Rather than wait until we could work ters. The Subcommittee’s review of the Dr. case. Coupling the 1997 disclosures with the out acceptable language on other proposals Peter Lee case identified a number of short- 1985 revelations would have demonstrated arising from the Peter Lee case, I felt it comings in existing procedures for handling that Dr. Lee’s classified disclosures were not more important to accomplish what could be espionage investigations and prosecutions, limited to a single incident long ago, but done in the time available and address the particularly in cases where highly technical were ongoing. Obtaining a conviction on the more difficult matters later. I also withheld classified information is revealed verbally 1997 disclosures would not have been a fore- publication of this report during the last rather than through the transfer of docu- gone conclusion—pushing the matter risked Congress so as not to inject it into the presi- ments. Communications between and within disclosing certain information that the FBI dential election. Now that the election is the Department of Justice and other Execu- and the prosecutor wanted very much to pro- over and the 107th Congress is well under- tive Branch organizations appear to have tect, and the Navy was reluctant to assist in way, it is appropriate to release this report broken down at critical points during the the prosecution—but these were not insur- and begin working on legislation to solve the Peter Lee case, with the result that several mountable obstacles. At a minimum, an ef- other problems identified by our oversight key decisions were made on the basis of in- fort should have been made to add a separate but upon which we were unable to achieve complete or incorrect information. Had this count to the plea agreement to address these consensus. case been handled more formally and delib- disclosures. Specifically, I am introducing legislation erately, with more of the critical informa- DoJ communications were confused on the to require victim agencies—the agencies tion being communicated in writing, the op- critical question of what authority the trial whose classified information is lost—to

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00050 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S13823 produce a written ‘‘damage statement’’ nation for the Viewing Angle Dependence of During this same interview, Dr. Lee also which specifies the level of classification of Temperature from Cairn Targets,’’ was sub- repeatedly confessed that he intentionally the material alleged to have been revealed, sequently declassified in 1996,20 revealing its revealed classified information during his and justifies the classification level by de- contents in 1985 was an illegal act that could 1997 anti-submarine lectures in China. Dr. scribing the potential harm to national secu- be expected to provide substantial assistance Lee was not prosecuted for these revelations, rity from such revelations. The legislation to the Chinese from 1985 to 1996 and to harm and the judge was not adequately informed further requires the prosecution team to U.S. national security. of these admissions at sentencing. consider the ‘‘damage statement’’ before any Dr. Lee again visited China, while he was On 8 December 1997, Dr. Lee pleaded guilty final decision is made as to whether the case employed by TRW, from 30 April to 22 May to a two count information that he violated: should be taken to trial or a plea bargain 1997.21 Although Dr. Lee claimed on his trav- (1) 18 USC 793(d)—Attempt to communicate should be offered. I also strongly believe, but el request form, and in a 25 June 1997 inter- national defense information to a person not will not attempt to mandate through legisla- view with FBI Agent Gilbert Cordova, that entitled to receive it, and (2) 18 USC 1001— tion, that key instructions from Main Jus- the visit to China had been a pleasure trip False statement to a government agency.32 tice (Internal Security Section, etc.) to the for which he paid all his own expenses, the According to the press release from the of- U.S. Attorney’s Office with responsibility for truth was that Dr. Lee traveled as a guest of fice of U.S. Attorney Nora Manella, Dr. Lee prosecuting the case, including charging au- the Chinese Institute of Applied Physics and ‘‘admitted that he knew the information was thority and plea bargain authority, should Computational Mathematics (IAPCM), which classified, and that by transmitting the in- be in writing. These written instructions is part of the China Academy of Engineering formation he intended to help the Chi- should be shared with the investigating Physics.22 nese.’’ 33 The offenses to which Lee pleaded agency or agencies and the victim agency so During this May 1997 trip, Dr. Lee gave a guilty could have resulted in a maximum they have an opportunity for input before lecture at the PRC Institute of Applied sentence of 15 years in federal prison and a any final decisions are made. Physics and Computational Mathematics in fine of $250,000. Under the terms of the agree- The findings and recommendations in- Beijing. The lecture covered his work for ment, the Government asked for a ‘‘short pe- cluded in this report are based on a review of TRW in support of the Radar Ocean Imaging riod of incarceration,’’ a formulation that more than 6,000 pages of documents from the Project, and was attended by nearly 30 top was negotiated by the trial attorney and ap- FBI, the Department of Defense and its sub- PRC scientists.23 When asked about the ap- proved by Mr. John Dion in the Internal Se- components, the Department of Justice and plicability of his work to anti-submarine curity Section, but was not approved by information submitted to the court during warfare, Dr. Lee showed the scientists a sur- Principal Deputy Assistant Attorney Gen- the sentencing process. The Subcommittee face ship wake image (which he had brought eral Keeney, the DoJ official with final au- conducted three open hearings, three closed from the U.S. to show them), drew a graph, thority, who advised the Subcommittee that hearings, two ‘‘on-the-record’’ Senators’ explained the physics underlying his work, he would not have approved the plea agree- briefings, and numerous staff interviews, and told the Chinese where to filter the data ment had he known that it would request which resulted in hearing from more than 30 within the graph to enhance the ability to only a short period of incarceration as an 34 individuals who played key roles in the con- locate the ocean wake of a vessel.24 A few opening position. On 26 March 1998, Dr. Lee was sentenced by duct of the case. The information presented days later, Dr. Lee gave the same lecture in U.S. District Court Judge Terry Hatter to here is derived from unclassified documents another city, using the graphs that the Chi- one year in a community corrections facil- and testimony, or relies upon unclassified nese had saved from his first lecture and had 25 ity, three years of probation, 3,000 hours of extracts from classified documents. brought to the second lecture for his use. Upon his return from the PRC, Dr. Lee community service, and a $20,000 fine. The SUMMARY OF DR. PETER H. LEE’S ESPIONAGE filled out a TRW Post-Travel Questionnaire sentence was based upon a sealed plea agree- ACTIVITIES in which he denied that there ‘‘were any re- ment from 8 December 1997.35 The plea agree- Dr. Peter Lee is a naturalized U.S. citizen quests from Foreign Nationals for technical ment and other key documents in the case who worked for TRW Inc., a contractor to information,’’ and denied that there were were unsealed at the request of the Sub- Lawrence Livermore National Laboratory, any attempts to persuade him to reveal or committee in late 1999.36 from 1973 to 1976. Dr. Lee worked at Law- discuss classified information.26 Every DoJ official interviewed by the Sub- rence Livermore from 1976 to 1984, and at Los On 5 August and 14 August 1997, Peter Lee committee expected Dr. Lee to receive jail Alamos National Laboratory from 1984 to was interviewed by FBI agents at a Santa time, during which they planned to seek his 1991. He returned to TRW from 1991 until De- Barbara, California, hotel. During these further cooperation. When he received no jail cember 1997, when he was dismissed in the interviews, Dr. Lee admitted that he had lied time, all leverage was lost by the govern- wake of his plea agreement for passing clas- on his travel form about the purpose of his ment. sified information to the Chinese.12 trip to China in May, and that he had lied Analysis of the Nuclear Weapons Design Rev- According to his October 1997 confession to about receiving requests for technical infor- elations the FBI, Dr. Lee traveled to China from 22 mation. However, he continued to insist that The importance of Dr. Lee’s 1985 disclo- December 1984 to 19 January 1985 (while he he had paid for the trip to the PRC with his sures is highlighted by the 17 February 1998 was employed by Los Alamos National Lab- own money.27 ‘‘Impact Statement’’ from the Department of 13 oratory). On 9 January 1985, Dr. Lee met After the two FBI interviews, Dr. Lee con- Energy which concludes that: with Chen Nengkuan, a PRC scientist em- tacted a Chinese official named Gou Hong by ‘‘the [Inertial Confinement Fusion] data ployed by the China Academy of Engineering e- mail on 25 August 1997, and requested that provided by Dr. Lee was of significant mate- Physics (CAEP), in a hotel room in Beijing. Gou provide Lee with receipts indicating rial assistance to the PRC in their nuclear Chen told Dr. Lee that he had classified that Lee had paid for the trip to the PRC, weapons development program.... For that questions to ask, and that Dr. Lee could an- that the receipts contain the names of Lee reason, this analysis indicates that Dr. Lee’s swer just by nodding his head yes or no.14 and his wife in English, and that they show activities have directly enhanced the PRC Chen drew a diagram of a hohlraum (a device that Lee paid cash for the trip.28 On 3 Sep- nuclear weapons program to the detriment of in which lasers are fired at a glass globe to tember 1997, Dr. Lee provided the FBI with U.S. national security.’’ 37 ‘‘create a small nuclear detonation which is copies of hotel and airline receipts for the The ‘‘Impact Statement’’ further notes then studied and used in the design of nu- May 1997 trip which stated that Lee had paid that ‘‘the ICF Program, when developed in clear weapons),’’ 15 and asked the classified for the trip in cash. Based on a review of e- conjunction with an already existing nuclear questions, which Dr. Lee, by his own admis- mail transmissions and telephone conversa- program, could assist in the design of more sion, knew were classified but answered any- tions between Lee and Gou, however, the FBI sophisticated nuclear weapons.’’ 38 way.16 concluded that these receipts were false.29 The trial attorney wanted to prosecute The following day, Dr. Lee accompanied On 7 October 1997, Dr. Lee was interviewed under Section 794 for the 1985 revelations, Chen to a hotel in Beijing where another and polygraphed by the FBI. The polygraph but was overruled by Main Justice as well as group of PRC scientists was waiting. These examiner believed that Lee showed deception his supervising attorney.39 In his 12 April scientists were also from the China Academy when he answered ‘‘no’’ to the following 2000 written statement to the Subcommittee, of Engineering Physics, which is ‘‘respon- questions: (A) Have you ever deliberately the Internal Security Section (ISS) line at- sible for all aspects of the PRC’s nuclear been involved in espionage against the torney with primary responsibility for the weapons program.’’ 17 Among the scientists United States? (B) Have you ever provided Peter Lee case, explained why he did not feel Dr. Lee briefed was Yu Min, who has been classified information to persons unauthor- it appropriate to pursue a 794 charge on the called ‘‘the ‘Edward Teller’ of the PRC nu- ized to receive it? (C) Have you deliberately 1985 disclosures. clear weapons program.’’ 18 For two hours, withheld any contacts with any non-U.S. in- ‘‘In my estimation, both then and now, the Dr. Lee answered questions and drew dia- telligence service from the FBI? 30 After sole weakness in the case was the question- grams, including several hohlraums. Dr. Lee being told that he had failed the polygraph able significance of the information Lee also ‘‘discussed problems the U.S. was having on these questions, Dr. Lee made a compromised, both in 1985 and in 1997. As to in its nuclear weapons testing program.’’ 19 videotaped confession in which he admitted Lee’s 1985 disclosure, I knew, for instance, Dr. Lee further admitted discussing with the ‘‘having passed classified national defense that the Department had never prosecuted a Chinese scientists at least one portion of a information to the PRC twice in 1985, and to case under 794 where the compromised infor- classified document he authored in 1982. Al- lying on his post-travel questionnaire in mation, as in the case of Lee’s 1985 disclo- though the document, titled ‘‘An Expla- 1997.’’ 31 sure, had been declassified prior to the crime

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00051 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S13824 CONGRESSIONAL RECORD — SENATE December 20, 2001 being discovered. Let me emphasize this: the the Chinese was related to the national de- search nuclear weapons facilities giving a information Lee admitted disclosing in 1985 fense, an element of proof that would have two hour lecture regarding classified infor- had been declassified.’’ 40 been necessary to sustain a charge under 18 mation to the top nuclear scientists of This analysis may be correct as far as it USC 794. In response to a question from Sen- China.’’ 54 goes, but there were other factors and issues ator Sessions, the attorney said that the in- Dr. Lee very likely could have been pros- that should have been considered. Dr. Lee’s formation Dr. Lee revealed in 1985 ‘‘was clas- ecuted under 18 USC 794, the harshest of the confession, though carefully crafted to limit sified SECRET, but I’m not sure it would espionage statutes, for his nuclear weapons his exposure, simply confirmed much, but have been ultimately found to be national design revelations. As Senator Sessions said not all, of what the FBI already knew about defense information at the time he com- at the Subcommittee’s 5 April 2000 hearing: his espionage activities. The FBI knew well promised it.’’ ‘‘I don’t think [the prosecuting attorney] before they confronted Dr. Lee that he had When pressed by Senator Sessions to ex- would have had a problem getting a convic- likely been compromising anti-submarine in- plain how nuclear weapons design informa- tion on that. [Dr. Lee] confessed to it, num- formation since the early 1990s,41 and that in tion could be deemed not related to the na- ber one. Number two, I don’t think any jury the early 1980s Dr. Lee had allegedly given tional defense, the attorney referred to the is going to believe that he was there for his the Chinese classified information that Supreme Court’s opinion in Gorin v. United health and a casual conversation to have two greatly assisted their nuclear weapons pro- States.46 Any reliance on the Gorin decision different meetings in Beijing hotel rooms gram.42 One scientist the FBI consulted in in the context of the Peter Lee case is mis- with top Chinese scientists. There is no busi- trying to evaluate the extent of Dr. Lee’s placed. The Gorin case was decided in Janu- ness for that, and anyone with common revelations said, ‘‘It seems likely that Peter ary 1941, well before the advent of nuclear sense would understand it.’’ 55 Lee at least partially compromised every weapons. The Court’s opinion, written by In the context of the prosecuting attor- project, classified or unclassified, he was in- Justice Reed, makes clear that the informa- ney’s efforts to proceed under 794 and Sen- volved with at Livermore, [Los Alamos Na- tion in the Lee case would have been found ator Sessions’ strongly expressed views, there is a strong argument that a 794 pros- tional Laboratory], and TRW.’’ 43 to be ‘‘national defense information.’’ In the ecution should have been brought. At a later stage of the proceeding, Dr. Lee words of the Court: admitted that he had given the PRC sci- ‘‘National defense, the Government main- Internal DoJ Mis-communication and a Lack of entists additional information which had not tains, ‘‘is a generic concept of broad con- High Level Supervision been declassified. Had the Internal Security notations, referring to the military and Unfortunately, the case never went to Section awaited fuller development of the naval establishments and the related activi- trial. By late November 1997, the Internal Se- facts, it might not have declined prosecution ties of national preparedness.’’ We agree that curity Section attorney had completed his under 794 on grounds of subsequent declas- the words ‘‘national defense’’ in the Espio- analysis of the case, concluding that Dr. Lee sification. The Government would have been nage Act carry that meaning.’’ 47 should be offered a plea under 18 USC 793 or able to corroborate Dr. Lee’s confession and When the Supreme Court held, as it did in section 224(b) of the Atomic Energy Act of to prove that he had done more than he con- Gorin, that reports ‘‘as to the movements of 1954 for the 1985 compromise, in combination fessed to. As the prosecuting attorney noted fishing boats, suspected of espionage and as with a charge under section 1001 for the false during his 5 April 2000 appearance before the to the taking of photographs of American statements on his travel form.56 When it be- Subcommittee, ‘‘. . . in the many cases I had war vessels’’ 48 constituted national defense came apparent that ‘‘Lee was balking at a with a cooperating defendant or a defendant information, there can be no doubt that nu- plea with a potential 10-year exposure for the who pled guilty who was debriefed, I never clear weapons design information would be 1985 incident,’’ the attorney recommended to had the kind of information to corroborate encompassed by the term. Mr. Dion that ‘‘although the section 794 case what was said as I did in this case.’’ 44 The DoJ attorney also cited the decision of for that incident in 1985 had problems, it was The ISS line attorney’s statement regard- the Second Circuit Court of Appeals in sufficiently robust that we could ethically ing the ‘‘questionable significance of the in- United States v. Heine.49 That case has no use it as leverage.’’ 57 Mr. Dion testified that formation Lee compromised’’ in 1985 is flatly applicability to this matter since all the in- he called the prosecuting attorney and au- contradicted by the DoE ‘‘Impact State- formation given to a German automobile thorized him to: ment’’ of 17 February 1998 which states that corporation was publicly available at the ‘‘seek a plea of guilty by Lee to a violation Dr. Lee did serious harm to U.S. national se- time of disclosure.50 of 18 USC Section 793(d) for his 1985 disclo- curity. Had the ISS line attorney waited for During the sentencing hearing, Dr. Lee’s sures and to a violation of the false state- the experts to evaluate the case, he would lawyer, Mr. James Henderson, tried to down- ment statute, 18 USC Section 1001. As such a have known that a 794 charge should be play the significance of the 1985 revelations plea would require Lee to waive the 10-year given much greater consideration than it through character witnesses who claimed statute of limitations, [the prosecuting at- got. that the disclosures were not related to nu- torney] was authorized to advise counsel During testimony before the Sub- clear weapons but to energy production.51 that no final decision had been made as to committee, the ISS line attorney who han- These witnesses did not have access to the the prospect of charging Lee with a violation dled the case stated that it would have been text or tape of Dr. Lee’s confession which de- of Section 794.’’ 58 impractical to wait for a damage assessment tailed the extent of his revelations.52 Dr. The prosecutor, who was emphatic in his which, in his experience, normally takes Cook and the authors of the 17 February 1998 testimony that his instructions were to ac- more than a year. In fact, however, there DoE ‘‘Impact Statement’’ had access to Dr. cept a plea under 793 and 1001, or nothing,59 were two assessments available within less Lee’s confession and were in a position to obtained a plea on both counts, but had to than 90 days of the start of plea negotiations. evaluate the extent of damage and of the es- concede to only a ‘‘short period of incarcer- Dr. Thomas Cook’s ‘‘Declaration of Tech- pionage. In view of these facts it was sur- ation’’ to secure Dr. Lee’s agreement.60 Prin- nical Damage to United States National Se- prising that the ISS attorney advanced the cipal Deputy Assistant Attorney General curity Assessed in Support of United States argument: John Keeney told the Subcommittee that, v. Peter Hoong-Yee Lee’’ was available in ‘‘that Lee could claim that he made the ‘‘. . . I was not aware, so far as I recall, that February 1998, as was the Department of En- disclosures to encourage China not to con- it would call for only a short period of incar- ergy ‘‘Impact Statement.’’ duct nuclear weapons tests in the field, and ceration or would charge only an attempted The Government had spent six years and he would likely be supported by internal 793 charge. Had this been our opening posi- considerable amounts of money inves- Government documents or even testimony of tion in plea negotiations, I doubt that I tigating Dr. Lee’s espionage activities, had former U.S. Government or Livermore offi- would have approved it, particularly, the obtained a confession that substantiated cials that that was actually one of the rea- ‘short period of incarceration.’ ’’ 61 He then much of the information it already had from sons the U.S. Government declassified the tried to justify DoJ’s handling of the case by other sources, and had not charged Dr. Lee information beginning in 1990. saying that ‘‘this was the best that could be with a crime and therefore did not have a ‘‘In other words, Lee would have been able hoped for given the sentencing practices of speedy trial issue to contend with. Con- to credibly argue that his actions were in the the courts in the Central District of Cali- sequently, there was no reason why the Gov- national interest.’’ 53 fornia.’’ 62 ernment could not wait for a complete anal- Any claim by Dr. Lee that his actions were Had Dr. Lee cooperated, as he was required ysis by competent experts of Dr. Lee’s espio- in the national interest would be totally un- to do under the plea agreement, it might nage activities. The failure to obtain such an founded. Individual scientists do not have have been possible to achieve an acceptable analysis prior to entering a plea agreement the latitude to make determinations—during disposition in the case even with the weak seriously undermined the Government’s abil- the course of lectures in Beijing hotel plea agreement. Had Dr. Lee told the whole ity to prosecute Dr. Lee under section 794, rooms—as to whether or not it is in the na- truth and provided whatever counter-intel- and was a major factor in the unsatisfactory tional interest to help the Chinese develop ligence information he knew, that would disposition of the case. more sophisticated nuclear weapons. mitigate the need to punish him with a long In his testimony before the Subcommittee The prosecuting attorney made this very sentence. It might have been acceptable to on 12 April 2000, the ISS line attorney who point at the sentencing hearing when he balance counterintelligence information handled the Lee case further argued that the said, ‘‘It is not up to the whim of an indi- gained from a cooperating defendant against Government would have had a hard time vidual scientist to determine if something is the need to punish wrongdoing. However, proving that the classified nuclear weapons classified. . . . This is one of the nation’s top there is no benefit in accepting a plea con- design information that Dr. Lee provided to scientists from one of the nation’s top re- tingent upon the defendant’s cooperation

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00052 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S13825 and then not getting that cooperation. Dr. plea, breaching the plea would leave the Gov- what the Assistant U.S. Attorney was au- Lee did not live up to his obligation to be ernment with only the 1001 count, which was thorized to do and under what terms he was truthful. The ‘‘Position with Respect to Sen- also in the plea. Therefore, the prosecutor authorized to do it could be subject to such tencing Factors’’ that the Government sub- felt he had to stick with the plea agreement differing interpretations and understandings. mitted to the court acknowledged ‘‘concerns because it was that or nothing.69 Even In an effort to understand how such a funda- that defendant has still not been completely though the prosecutor knew Dr. Lee was mental point could be misunderstood, the forthcoming about the nature, quality and lying and was not cooperating, he felt he Subcommittee traced the information that extent of his improper contacts with sci- could not abrogate the plea agreement be- appeared in Colonel Baur’s memo to Sec- entists of the PRC.’’ 63 Dr. Lee’s lack of co- cause he thought he could not charge Dr. Lee retary Cohen back to its origins. It appears operation was further highlighted in the under Section 794 due to constraints imposed that Mr. Dion spoke to the prosecutor, who February 1998 DoE ‘‘Impact Statement’’ by the Internal Security Section at Main then spoke to the Los Angles case Agents. where the authors note that: Justice. Sometime thereafter, the FBI Supervisory ‘‘[W]e do not believe that Dr. Lee has been Mr. Dion conceded at the Subcommittee’s Special Agent in Los Angles was briefed by fully cooperative in identifying or describing 12 April 2000 hearing that he did not recall one of the two case agents, or by both. One other classified information he may have discussing with the prosecuting attorney of these agents relayed the information to compromised. We believe that Dr. Lee con- that he (Dion) might reconsider a 794 pros- the attorney in National Security Law Unit, fessed to compromising selected classified ecution if the proposed plea agreement fell who passed it on to the FBIHQ Supervisory information in the hope his other, more dam- through: Special Agent, for subsequent relay to Colo- aging activities would not be discovered or nel Baur. Whatever the actual path of the in- Senator SPECTER: You say no final decision fully investigated.’’ 64 had been made . . . as to whether he would formation—and wherever the mis-commu- On 26 February 1998, Dr. Lee failed an FBI- nication was introduced—it is clear that the administered polygraph where he was asked be charged with 794? Mr. DION: That’s correct, sir.... information did not pass, as one might ex- whether he had lied to the FBI since his last Senator SPECTER: . . . Mr. Dion, when you pect, from the Internal Security Section to polygraph examination regarding passing say no decision had been made and I inter- the Department of Defense. The ISS line at- classified information.65 When interviewed rupted you at that point as to what would torney handling the case testified that he by DoE scientists in March 1998, Dr. Lee happen if the plea bargain broke down, [the never spoke to anyone in DoD about the plea again failed to cooperate fully. As Dr. Thom- prosecuting attorney] testified very em- discussions. As a consequence of this failure as Cook pointed out during his testimony be- phatically that he wanted to proceed with to communicate, the victim agency and offi- fore the Subcommittee on 29 March 2000, 794 but was told that all he could do was do cials within the Department of Justice were when asked questions about what he had the best he could under the authorized plea acting without a clear understanding of the done, Dr. Lee ‘‘repeatedly denied any knowl- bargain, so that is why he proceeded as he actual decisions that had been made. edge or any interest in classified programs It is obvious that the case would have ben- did, asking for only a short period of incar- and publications. He was, however, the au- efitted from more direct supervision by high ceration and not taking action when Dr. Lee thor and/or the technical editor of some of level Justice Department officials, which lied on his polygraph and did not give fur- these publications which he denied knowl- would have likely reduced the confusion ther answers. But are you suggesting, if that edge of.’’ 66 In view of these repeated lies and within the Department of Justice and be- plea bargain had broken down, that you lack of cooperation, there should be no doubt tween DoJ and the Department of Defense. might have reconsidered and authorized a 794 that Dr. Lee did not comply with the terms Attorney General Reno was provided with prosecution? of the plea agreement, and the Government three ‘‘Urgent Reports’’ informing her of ‘‘(1) could have successfully sought to breach it. Mr. DION: We definitely would have recon- Peter Lee’s admission on October 7, 1997, (2) When asked by Senator Specter why he did sidered our course of action, sir. his entry of a guilty plea on December 9, not breach the plea agreement in view of this Senator SPECTER: Well, did you tell [the 1997, and (3) the court’s imposition of sen- lack of cooperation, the prosecuting attor- prosecutor] that? tence on March 26, 1998.’’ 75 On 31 October ney explained that he could not abrogate the Mr. DION: I don’t recall specifically if we 1997, as required by law, she also signed the deal because he had nothing to fall back on,67 discussed that or not. We did discuss that no document authorizing the use of FISA-de- and because doing so risked exposing ex- final decision had been made on the 794 and rived information for law-enforcement pur- tremely sensitive classified information he that he should proceed with plea negotia- poses. She was not otherwise involved in the 70 had been instructed to protect.68 The pros- tions on that basis. case, leaving the matter to subordinates. ecutor advised that he was told that if there In the face of the prosecuting attorney’s The Deputy Attorney General, Mr. Holder, was a risk of certain evidence coming out, he testimony that he was authorized only to was also uninvolved in the case. would have to drop the case. As the case un- take the weak plea agreement or nothing, it Mr. John Dion was the supervisory attor- folded, however, there was no risk of that seems clear that he was correct on what au- ney in the Internal Security Section, but one evidence being disclosed. In the absence of thority was communicated to him. of his subordinates made the substantive de- any problem as to disclosure of the sensitive The prosecuting attorney was not the only cisions in this case. When questioned about information, and had the prosecutor known one who did not understand the Internal Se- allegations that Dr. Lee’s revelations ex- he could have, or at least might have been curity Section’s position with regard to a tended beyond what he confessed to, for ex- able to proceed with the 794 prosecution, charge under Section 794. An FBI e-mail of 25 ample, Mr. Dion deferred, saying that one of then the better course would have been to November 1997, from an attorney in the Na- his subordinate attorneys was ‘‘more di- have abrogated the plea agreement on the tional Security Law Unit, to an FBI Super- rectly familiar with that information than I basis of Peter Lee’s failure to cooperate visory Special Agent in the National Secu- am. . . .’’ 76 More direct supervision by key which could have been established without rity Division, noted in relevant part that DoJ personnel may have ensured a better disclosing any classified information. ‘‘According to [the FBI Supervisory Special outcome in this important espionage case. Due to the significance of the sensitive in- Agent], ISS/Dion said that if [Dr. Lee] Analysis of the Anti-Submarine Warfare Revela- formation about which the prosecutor was doesn’t accept the plea proffer, then he gets tions concerned, and the restrictions it placed on charged with 18 USC 794, the heftier charge.’’ It also appears that Dr. Lee should have the prosecution of the case, it is troubling The Secretary of Defense was told the been prosecuted in relation to the informa- that at no time during the course of the Sub- same thing. On 26 November 1997, Colonel tion he revealed in his May 11, 1997 briefing committee’s review of the case did Mr. Dion Dan Baur prepared a memorandum for the of Chinese scientists. Charges should have or anyone else from DoJ ever brief Congress Secretary of Defense and the Deputy Sec- been filed under Section 794(a) which applies about the information until after the pros- retary of Defense, in which he relayed infor- to ‘‘any other major weapons system or ecuting attorney raised the subject in the mation on the case he had received from the major element of defense strategy.’’ The U.S. context of explaining why he had not sought FBI. Colonel Baur’s memo stated that DoJ nuclear submarine fleet, which comprises to abrogate the plea agreement. The Classi- had granted the U.S. Attorney authority to one leg of the nation’s strategic triad, would fied Information Procedures Act (CIPA) spe- offer to let Lee plead guilty under 18 USC 793 qualify as a major weapons system. The po- cifically provides procedures whereby the and 18 USC 1001 to avoid being charged under tential harm from Dr. Lee’s 1997 revelations Government can deal with the risks of expos- Section 794.72 Furthermore, the memo noted was described by the Cox Committee Report: ing such information, even to the extent of that ‘‘should Lee decline the offer, the U.S. ‘‘Lee admitted to the FBI that, in 1997, he permitting the Attorney General to decline Attorney will seek an indictment against passed to PRC weapons scientists classified prosecution if the risk of exposing classified him for violation of Section 794.’’ When read research into the detection of enemy sub- information is too high. There is no evidence relevant portions of these communications marines under water. This research, if suc- that the Department of Justice formally at the Subcommittee’s 12 April 2000 hearing, cessfully completed, could enable the PLA to considered this sensitive information in the however, Mr. John Dion stated that they threaten previously invulnerable U.S. nu- CIPA context. were incorrect.73 Clearly there was a mis- clear submarines.’’ 77 The prosecutor’s understanding of his lim- communication on this very important issue, To determine whether or not the informa- ited authority was caused by a breakdown of both within the Department of Justice and tion Dr. Lee revealed would qualify for pros- communications. As he understood his au- between DoJ and DoD. ecution under section 794, the Government thority, since Dr. Lee had waived the statute It is surprising and disturbing that a crit- first needed to get an assessment of that in- of limitations on the 793 count to accept the ical piece of information in the case exactly formation. On 14 October 1997, the Assistant

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00053 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S13826 CONGRESSIONAL RECORD — SENATE December 20, 2001 U.S. Attorney handling the case in Los An- might be out there that could potentially On 19 November 1997, the Schuster memo- geles contacted a representative of the De- compromise a Section 794 prosecution on the randum was sent to Mr. Dion from Navy fense Criminal Investigative Service. He was 1997 compromise, and what could we say General Counsel Steven S. Honigman, who referred to Dr. Donna Kulla in the Intel- about the program generally, as we have stated that he and the Vice Chief of Naval ligence Systems Support Office where she here today, in an open trial setting.’’ 83 Operations concurred with Mr. Schuster’s dealt with the Radar Ocean Imaging (ROI) By 3 November 1997, the Department of De- conclusions. The Schuster memo has been project on which Peter Lee worked. Dr. fense had compiled an extensive list of pub- described by various DoJ officials as a ‘‘body Kulla informed the prosecuting attorney licly available information on the topic of blow’’ to the prosecution because of their that the information that Dr. Lee had re- radar ocean imaging and provided it to the view that it might be ‘‘Brady material’’ or in vealed was classified CONFIDENTIAL.78 Internal Security Section. Among the docu- some way exculpatory as to Dr. Lee. At min- In mid-October, the FBI also contacted Dr. ments was a printout from a LLNL website imum, it seriously complicated DoJ’s case. Richard Twogood, of Lawrence Livermore titled ‘‘Radar Ocean Imaging,’’ and prepared The ambiguous Schuster memorandum was National Laboratory (LLNL), and asked for remarks that Dr. Twogood had presented in apparently designed to later enable the Navy his opinion on the level of classification of open session before the House Armed Serv- to take virtually any position: the signal Dr. Lee’s revelations. Dr. Twogood was the ices Committee in April 1994. Both of these analysis techniques are unclassified; they Deputy Associate Director for Electronics documents contained general information could be classified SECRET; the material Engineering at LLNL, and from 1988 until about the use of radars to detect sub- was extracted from a CONFIDENTIAL docu- 1996 had been the Program Leader for the marines.84 Based on his assessment of these ment; significant damage may not be prov- Imaging and Detection Program at LLNL. documents, the ISS attorney concluded that able; bringing the issue to a public forum The Joint U.S./U.K. Radar Ocean Imaging Dr. Lee could not be prosecuted under sec- could damage national security; avoid legal Program, for which Dr. Twogood was the tion 794 for the 1997 compromise. As he put it action. When Mr. Schuster was questioned Technical Program Leader from 1990 through in his 12 April 2000 appearance before the by the Subcommittee, he was unable to ex- 1995, was the single largest component of Subcommittee: plain why the memo was written as it was or LLNL’s Imaging and Detection Program, and ‘‘The Web site and Dr. Twogood’s testi- what it meant. The most charitable view of it was the one where Dr. Peter Lee worked mony, coupled with the fact that the under- the Schuster memo is that it was misleading and where he would have had access at the lying 1995 document was only classified and should never have been written. DoD SECRET level to the important discov- under a mosaic theory, convinced me that The Schuster memo was based on incom- eries and significant advances in the devel- there was no section 794 case on the 1997 plete information since neither Mr. Schuster opment of methods to detect submarine sig- compromise. In my opinion, Senators, it was nor any other Navy or DoD personnel re- natures with remote sensing radars.79 not even a close call.’’85 viewed the video or audio tapes of Dr. Lee’s Dr. Twogood is an authorized derivative The ISS line attorney was wrong in con- confession. When that confession was re- classifier, which means that he can make ap- cluding that the information was already viewed at the Subcommittee’s request, Mr. propriate judgements about classification publicly available.86 Subsequent analysis Schuster, along with Dr. Donna Kulla and based on guidance written by others. Al- showed that Dr. Lee’s anti-submarine war- Wayne Wilson, signed a memorandum dated though the Navy had primary jurisdiction fare revelations extended beyond what was 9 March 2000 stating that Dr. Lee’s disclo- over the anti-submarine warfare information in the public domain and therefore remained sures should have been classified CON- that Dr. Lee revealed to the Chinese, Dr. classified. FIDENTIAL. Twogood had personally written some of the On 10 November 1997, in response to a 30 Two additional memoranda were made classification guidance being used in the October request from the prosecuting attor- available to the Department of Justice re- Joint U.S./U.K. program, and was therefore ney, Lawrence Livermore employee Al garding Dr. Lee’s 1997 disclosures, but were familiar with the importance of the informa- Heiman provided an FBI Special Agent with apparently insufficient to change the view of tion. When he reviewed the videotaped con- a copy of the Security Plan covering the de- the ISS line attorney handling the case. A fession on 15 October 1997, Dr. Twogood noted tection results in the U.K./U.S. Radar Ocean classified 17 November 1997 memorandum, that Dr. Lee himself admitted that he had Imaging program. The enclosed memo- referencing a conversation with Dr. passed CONFIDENTIAL information. Fur- randum from Dr. Twogood described the Twogood, stated that, contrary to Mr. thermore, Dr. Twogood informed the FBI classification guidelines established for the Schuster’s opinion, what Dr. Lee revealed to that the information was at least CON- program. Paragraph 3 of Appendix A of the the Chinese in 1997 should be considered SE- FIDENTIAL and likely DoD SECRET. More classification guideline—indicating that CRET. The memo provides substantial tech- importantly, in Dr. Twogood’s view, Dr. ‘‘processing techniques which, when applied nical detail to make the case that Mr. Lee’s disclosures went right to the heart of to unclassified or classified data, yield a sig- Schuster was incorrect in his analysis. Law- the most significant technical achievement nificant enhancement in signature detect- rence Livermore followed up with another of the U.S./U.K. program up until 1995.80 ability which might apply to the submarine classified memorandum on 21 November 1997, The prosecuting attorney was concerned case’’ should be classified SECRET—was di- citing the opinions of both Dr. Twogood and that Dr. Twogood’s position could be said to rectly applicable to the information that Dr. Mr. Jim Brase, who was also knowledgeable have evolved, from saying it was CONFIDEN- 87 Lee revealed to the Chinese. of the Radar Ocean Imaging project. Most TIAL when first asked, to the later position On 14 November 1997, Mr. John G. importantly, these memoranda explain, in that the information was SECRET. The pros- Schuster, Jr., wrote the following memo- considerable scientific detail, how the infor- ecutor was also aware that the defense would randum for Navy Captain Earl Dewispelaere: mation Dr. Lee provided to the Chinese dif- be able to find competent scientists who ‘‘The signal analysis techniques briefed by fered in ways that made it classified from would take a different view about the level the subject are UNCLASSIFIED when ap- what had been on the LLNL Web site, in Dr. of classification due to the similarity of plied to environmental data and they have Lee’s 1995 article, and in Dr. Twogood’s April some of the information to what was already been presented and published in several un- 1994 House Armed Services Committee testi- in the public domain. These are legitimate classified forums. Any application of the mony. concerns, but are not outside the realm of technique to submarine wake signatures, When questioned at a Subcommittee hear- what prosecutors contend with in all espio- however, would be classified at the SECRET ing on 29 March 2000, Mr. Schuster conceded nage cases. They are, by no means, sufficient level, as called out in current classification that Dr. Twogood was the person to accu- to justify not going forward with the pros- guides. rately evaluate Dr. Lee’s disclosures: ecution. ‘‘The material that was briefed appears to On 28 October 1997, the ISS attorney han- have been extracted from a CONFIDENTIAL Senator SPECTER: Dr. Twogood testified dling the case attended a meeting with DoD document. This classification was applied that [Dr. Lee] gave away the heart, the core officials for the purpose of determining based on concern that the document, taken . . . of the information. Would you disagree whether there was publicly available infor- as a whole, might suggest a submarine appli- with that? mation that could undermine an espionage cation even though it was not explicitly Mr. SCHUSTER: He was talking about the prosecution for the 1997 compromise.81 At the stated. Given that the CONFIDENTIAL clas- information in the program. That is not my meeting, the DoJ attorney provided DoD of- sification cannot be explicitly supported by program and I don’t know that I could speak ficials with the draft Cordova affidavit, and the classification guides and that material to the heart or core of that program. made them aware that the confession had similar to that briefed by the subject has Senator SPECTER: So that is beyond the been videotaped, but he did not provide cop- been discussed in unclassified briefings and purview of your expertise or knowledge? ies of the tapes and no DoD officials asked publications, it is difficult to make a case Mr. SCHUSTER: Yes, sir, relative to the pro- for them.82 When asked about why he had not that significant damage has occurred. Fur- gram. provided copies of the tapes to DoD per- ther, bringing attention to our sensitivity Senator SPECTER: So based on your knowl- sonnel, the ISS attorney replied: concerning this subject in a public forum edge, you wouldn’t have a basis for dis- ‘‘Because at that point, at the initial meet- could cause more damage to national secu- agreeing with what Dr. Twogood said? ing, the purpose was not to get a final classi- rity than the original disclosure. Mr. SCHUSTER: Not in that sense. I couldn’t fication determination or even a preliminary ‘‘Based on the above, it is recommended comment.89 classification determination on this informa- that the disclosure of this material should Mr. Schuster sought to explain his 14 No- tion. It was only to find out one of two not be considered as the sole or primary vember 1997 memo by saying that it was his things: what publicly available information basis for further legal action.’’ 88 intent to give his assessment to Captain

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00054 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S13827 Dewispeleare and not to the Department of It seems apparent that obtaining false doc- discussion of anti-submarine warfare, but Justice.90 uments from a Chinese official would have the process established by CIPA could have Mr. Schuster testified that he never talked warranted a separate count under 18 USC ensured that no sensitive information was to anyone in the Department of Justice and 1001, and would have shown that Dr. Lee’s disclosed. In the absence of any risk of dis- had never been briefed as to how sensitive 1997 transgressions extended beyond his lies closing classified information, the Navy’s Navy and DoD information could be pro- to his employer. The Government’s failure to general unwillingness to have anti-sub- tected by the Classified Information Proce- highlight Dr. Lee’s collusion with officials marine warfare discussed in a public pro- dures Act.91 This is in contrast to the pros- from the Chinese institutes where he visited ceeding should have had no bearing on the ecuting attorney, who testified, ‘‘We assured resulted in an inaccurate portrait of his ac- Government’s decision to proceed with a the Navy that we could very confidently pro- tivities, one that was significantly less sin- prosecution. The briefing process established tect any classified information primarily be- ister than the reality of his conduct. Had by the Counterintelligence Reform Act will cause it was my analysis that the stuff was this case enjoyed better communication ensure that any legitimate concerns of the less classified, less dangerous.’’ 92 within DoJ and better cooperation from the victim agency are addressed, and that the On 21 May 1999, the Navy again weighed in Navy, and a more aggressive approach by Justice Department will be able to distin- on the subject, writing to the Cox Com- senior DoJ officials, Dr. Lee should have guish between real security concerns and a mittee to assert that ‘‘the draft report been charged or required to plead to at least general unwillingness to support a prosecu- mischaracterizes the substance and signifi- four counts: (1) a 794 charge for the 1985 tion. cance of the disclosure made by Lee during hohlraum revelations, (2) a 794 charge for the Although I do not intend to introduce leg- 93 his trip to Beijing in 1997.’’ The letter fur- 1997 anti-submarine warfare revelations, (3) a islation requiring it, I believe that key in- ther takes issue with the Cox Committee Re- false statements charge under 18 USC 1001 structions from Main Justice (Internal Secu- port draft for creating the: for his lies on the TRW Post-Travel ques- rity Section, etc.) to the U.S. Attorney’s Of- ‘‘erroneous impression that the technology tionnaire, and (4) a 1001 charge for submit- fice with responsibility for prosecuting the Lee discussed during his 1997 Beijing trip was ting false travel documents that he got from case, including charging authority and plea highly sensitive and previously unknown, the Chinese. Had these charges been filed, bargain authority, should be in writing. and that his disclosure to the PRC caused there is little doubt that the extent of Dr. These written instructions should be shared grave harm to the national security, imper- Lee’s espionage and attempted cover-up with the FBI and the victim agency so they iling our submarine forces. In the considered have an opportunity for input before any judgement of the Navy, fortunately that is would have been made known. As it hap- pened, the full range of Dr. Lee’s felonious final decisions are made. There can be no not the case.’’ 94 conduct was never presented to the Court. doubt that key officials in this case were op- When questioned about this letter, Mr. erating under severe misunderstandings. The Preston had no facts to support his disagree- It should be noted that Judge Hatter could have requested additional information to prosecuting attorney thought his instruc- ment with the conclusions of the Cox Com- tions were that he had to accept a plea under mittee Report. He conceded that none of the gain a better understanding of the case, but he did not. DoE witnesses were present and Sections 793 and 1001 or nothing, while the individuals who had been involved in re- Internal Security Section claimed that it prepared to testify in camera at the sen- sponding to the Cox Committee Report had was still open to a possible 794 prosecution. tencing hearing regarding Dr. Lee’s 1985 rev- ever had access to the tapes or transcripts of Key officials within the Department of De- elations. Had the Judge heard from these ex- Dr. Lee’s confession, had made no effort to fense, up to and including the Secretary, pert witnesses, the harm done by Dr. Lee’s obtain them, and therefore did not know the were informed that if Dr. Lee refused the 95 significant material assistance to the PRC full extent of what he revealed. plea agreement, he would be prosecuted FISA Issues nuclear weapons program could have been under Section 794. With so much misunder- made clear to the Court. The loss of electronic surveillance on Dr. standing, it is surprising that the prosecu- Lee occurred at a critical juncture that may RECOMMENDATIONS tion did not suffer even more. have seriously hampered the Government’s The single greatest problem the Govern- CONCLUSION ability to collect important counter-intel- ment faced was its failure to come to terms This was an important espionage case, yet ligence information. When the Foreign Intel- with the significance of the information that remarkably little was documented during ligence Surveillance Act (FISA) court order Dr. Lee revealed to the PRC, both in 1985 and the key weeks leading up to the plea agree- expired on 3 September 1997, it was not re- in 1997. Important were decisions were made ment in late 1997. Decision-makers within newed. The FBI stated during testimony on without an adequate understanding of ex- the Department of Justice and the Depart- 29 March 2000 that the FISA had not been re- actly what Dr. Lee had revealed and what ment of Defense clearly have discretion in newed for several reasons, including con- were the consequences of those revelations. executing their responsibilities, and should cerns within the DoJ’s Office of Intelligence To prevent these problems from happening not be second-guessed at every turn. How- Policy and Review (OIPR) that the informa- again, I am introducing legislation that ever, the need to strike a balance between tion on Dr. Lee was ‘‘too stale,’’ 96 but OIPR would require victim agencies to produce a protecting the national security—which can disagrees with the FBI’s characterization of written ‘‘damage statement’’ which states conceivably be achieved by not prosecuting what happened.97 In view of the disagreement the level of classification of the material al- in certain circumstances—and the equal ap- as to what actually happened with the FISA leged to have been revealed, and describes in plication of the laws to ensure justice is request, it is only possible to conclude that detail the potential harm to national secu- done, requires that when judgements are the FBI should have pursued the matter by rity from such revelations. The prosecution made for which the reasons are not imme- making a formal written request. The Coun- team should consider the ‘‘damage state- diately apparent, the decision-makers must terintelligence Reform Act, which became ment’’ before any decision is made as to offer some explanation for their actions. In law at the end of the 106th Congress, will pre- whether the case should be taken to trial or the absence of such a documented rationale vent future disputes over who is responsible a plea bargain should be offered. for what may be necessary exceptions, the for the loss of FISA coverage by providing a The Department of Justice and the victim result is what appears to be arbitrary appli- mechanism for the Director of the FBI to agency may wish to consult informally be- cation of the laws, an outcome which pro- raise the matter directly with the Attorney fore the damage assessment is reduced to tects neither the national security nor the General, who will be required to reply in writing so that the victim agency will not law. The Government’s handling of the Dr. writing. In this way, senior officials in both unwittingly and incorrectly create Brady 102 Peter Lee case demonstrates clearly that on- the FBI and the Department of Justice can problems and hamper any ultimate prosecu- going, thorough congressional oversight is be held accountable for their judgements on tion. The risks of creating potential Brady essential. important espionage cases. material—as might happen if an initial clas- ENDNOTES Additional issues sification assessment were later reviewed 1. Gilbert Cordova, ‘‘Affidavit in Support of In addition to the disclosures of classified and changed—are obvious, but the risks of Complaint, Arrest Warrant and Search War- information for which Dr. Lee was charged, proceeding to a plea without a clear written rants: United States v. Peter Hoong-Yee the Government knew that: (1) Dr. Lee asked statement, made by competent officials, as Lee,’’ undated: 16. for and received falsified travel documents to the level of classification of the material 2. Robin Staffin, Deputy Assistant Sec- from the Chinese, which he presented to the in question are even greater. retary for Research and Development, Office FBI on 3 September 1997,98 (2) that his travel As noted previously, the Counterintel- of Defense Programs, Department of Energy, expenses in China were paid for by the Chi- ligence Reform Act, which became law in De- Notra Trulock III, Senior Intelligence Offi- nese,99 (3) that he enlisted the assistance of cember 2000, contains a provision requiring cer, Office of Energy Intelligence; and Jo- Chinese officials associated with the CAEP that the Justice Department provide brief- seph S. Mahaley, Director, Office of Security in his attempt to deceive the FBI, and (4) ings to victim agency officials regarding the Affairs, ‘‘Impact Statement’’, 17 February that he confessed on videotape to inten- manner in which the Classified Information 1998: 2. [DoJ Bates number 00116] tionally passing classified information dur- Procedures Act enables a prosecution to go 3. Robin Staffin, Deputy Assistant Sec- ing his 1997 trip to China.’’ 100 The only forward without revealing additional secrets. retary for Research and Development, Office charge arising from the events of 1997, how- Contemporaneous written records, particu- of Defense Programs, Department of Energy; ever, pertained to Dr. Lee’s false statements larly the Schuster memo, make it clear that Notra Trulock III, Senior Intelligence Offi- on his Post-Travel Questionnaire submitted the Navy was reluctant to proceed with a cer, Office of Energy Intelligence; and Jo- to TRW.101 prosecution due to sensitivity about a public seph S. Mahaley, Director, Office of Security

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00055 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S13828 CONGRESSIONAL RECORD — SENATE December 20, 2001 Affairs, ‘‘Impact Statement’’, 17 February No. 97–1181–TJH, 27 February 1998: 16–17. [DoJ istrative Oversight and the Court Hearing re- 1998: 2. [DoJ Bates number 00116] Bates number 000088–000089] garding the Dr. Peter Lee Case, 5 April 2000: 4. Transcript of Proceedings (first draft), 24. Cordova, Declaration in the Matter of 53. hearing before the Senate Judiciary Sub- United States vs. Peter Hoong-Yee Lee CR 40. ISS Line Attorney, Prepared Statement committee on Administrative Oversight and No. 97–1181–TJH, 27 February 1998: 1. [DoJ submitted to the Senate Judiciary Sub- the Courts regarding the Dr. Peter Lee Case, Bates number 000089] committee on Administrative Oversight and 29 March 2000: 52–53. 25. See Transcript of Proceedings (first the Courts Concerning the Peter Lee Espio- 5. Wayne Wilson, John G. Schuster, and draft), Hearing before the Senate Judiciary nage Case, 12 April 2000: 7. Donna Kulla, ‘‘MEMORANDUM FOR THE Subcommittee on Administrative Oversight 41. Transcript of Proceedings (first draft), GENERAL COUNSEL OF THE DEPART- and the Courts regarding the Dr. Peter Lee ‘‘Senate Judiciary Subcommittee on Admin- MENT OF DEFENSE,’’ 9 March 2000: 1. Case, 29 March 2000: 39. istrative Oversight and the Courts Hearings 6. According to Section 1.3 of Executive 26. Cordova, Declaration in the Matter of regarding the Dr. Peter Lee Case, 29 March Order 12958 (April 17, 1995, which superseded United States vs. Peter Hoong-Yee Lee CR 2000: 37. Executive Order 12356 of April 6, 1982), infor- No. 97–1181–TJH, 27 February 1998: 10. [DoJ 42. Transcript of Proceedings (first draft), mation is to be classified as ‘‘CONFIDEN- Bates number 000082] ‘‘Senate Judiciary Subcommittee on Admin- TIAL’’ if ‘‘the unauthorized disclosure of 27. Cordova, Declaration in the Matter of istrative Oversight and the Courts Hearing which reasonable could be expected to cause United States vs. Peter Hoong-Yee Lee CR regarding the Dr. Peter Lee Case, 29 March damage to the national security. . . .’’ No. 97–1181–TJH, 27 February 1998: 10–11. [DoJ 2000: 38. 7. Cox Committee Report, Vol. 1, 88. Bates number 000082–000083] 43. Transcript of Proceedings (first draft), 8. John C. Keeney, Principal Deputy As- 28. Cordova, Declaration in the Manner of ‘‘Senate Judiciary Subcommittee on Admin- sistant Attorney General, Criminal Division, United States vs. Peter Hoong-Yee Lee CR istrative Oversight and the Courts Hearing Department of Justice, prepared statement No. 97–1181–TJH, 27 February 1998: 11–12 [DoJ regarding the Dr. Peter Lee Case, 29 March submitted to the Senate Judiciary Sub- Bates number 000083–000084] 2000: 39. committee on Administrative Oversight and 29. Cordova, Declaration in the Manner of 44. Transcript of Proceedings (first draft), the Courts Concerning the Peter Lee Espio- United States vs. Peter Hoong-Yee Lee CR ‘‘Senate Judiciary Subcommittee on Admin- nage Case,’’ 12 April 2000: 6. No. 97–1181th–TJH, 27 February 1998: 11–12 istrative Oversight and the Courts Hearing 9. See Transcript of Proceedings (first [DoJ Bates number 000083–000084] regarding the Dr. Peter Lee Case, 5 April draft), Hearing before the Senate Judiciary 30. Cordova, Declaration in the Manner of 2000: 66. Subcommittee on Administrative Oversight United States vs. Peter Hoong-Yee Lee CR 45. Transcript of Proceedings (first draft), and the Courts regarding the Dr. Peter Lee No. 97–1181–TJH, 27 February 1998: 12. [DoJ ‘‘Senate Judiciary Subcommittee on Admin- Case, 12 April 2000: 14, 38–39 and 87–89. Bates number 000084] istrative Oversight and the Courts Hearing 10. Prosecuting Attorney, Transcript of 31. Cordova, Declaration in the Manner of regarding the Dr. Peter Lee Case, 12 April Interview with Senator Arlen Specter in Los United States vs. Peter Hoong-Yee Lee CR 2000: 67. Angeles, CA, 15 February 2000: 73–74. No. 97–1181–TJH, 27 February 1998: 13. [DoJ 46. Transcript of Proceedings (first draft), 11. Donna Kulla, interviewed by Charlie Bates number 000085] See also Government’s ‘‘Senate Judiciary Subcommittee on Admin- Battaglia in Washington, DC on January Response to Defendant’s Position with re- istrative Oversight and the Courts Hearing 2000. spect to Sentencing Factors; Declarations of regarding the Dr. Peter Lee Case, 12 April 12. Bruce Lake, e-mail to Dobie McArthur [Prosecuting Attorney], 23 March 1998: 5. 2000: 67–68. of January 28, 2000. Lists the following as [DoJ Bates number 000069] 47. See the opinion of Mr. Justice Reed, in dates of Peter Lee was employed by TRW: 32. INFORMATION, [18 USC 793 (d): At- Gorin v. United States, 312 U.S. 19; 61 S. Ct. Original hire date: 06/18/73 to 10/08/76 Rehire tempt to Communicate National Defense In- 429, 1941 U.S. Lexis 1033; 85 L. Ed 488: at 14– date: 04/29/91 to 12/08/97 Retired eff.: 12/30/97. formation to A Person Not Entitled To Re- 15. See also House of Representatives, Report of ceive It; 18 USC 1001: False Statement to 48. See the opinion of Mr. Justice Reed, in the United States House of Representatives Government Agency], undated, 1–3 [DoJ Gorin v. United States, 312 U.S. 19; 61 S. Ct. Select Committee on U.S. National Security Bates number 000001–000003] 429; 1941 U.S. Lexis 1033; 85 Ed. 488; at 5. and Military/Commercial Concerns with the 33. Nora M. Manella, Physicist Pleads 49. Transcript of Proceedings (first draft), People’s Republic of China, May 25, 1999, Vol. Guilty to Transmitting Classified Defense ‘‘Senate Judiciary Subcommittee on Admin- 1, 87–88. [Hereinafter, Cox Committee Report] Information to Representatives of the Peo- istrative Oversight and the Courts Hearing 13. Gilbert Cordova, Declaration in the ple’s Republic of China, News Release, 8 De- regarding the Dr. Peter Lee Case, 12 April Matter of United States vs. Peter Hoong-Yee cember 1997: 1. [DoJ Bates number 000096] 2000: 68. Lee CR No. 97–1181–TJH, 27 February 1998: 13. 34. Transcript of Proceedings (first draft), 50. See the opinion of Circuit Judge L. [DoJ Bates number 000085] ‘‘Senate Judiciary Subcommittee on Admin- Hand, in United States v. Heine, 151 F.2nd 14. Cordova, Declaration in the Matter of istrative Oversight and the Courts Hearing 813; 1945 U.S. App. Lexis 3049: at 8. United States vs. Peter Hoong-Yee Lee CR regarding the Dr. Peter Lee Case, 12 April 51. Reporter’s Transcript or Proceedings, No. 97–1181–TJH, 27 February 1998: 13–14 [DoJ 2000: 90. United States of America, vs. Peter Lee, 26 Bates number 000085–000086] 35. Nora M. Manella, Nuclear Physicist March 1998: 14. [DOJ Bates number 000017] 15. Reporter’s Transcript of Proceedings, Sentenced to One Year in Custody for Pass- 52. Reporter’s Transcript of Proceedings, United States of America, vs. Peter Lee, 26 ing Classified Defense Information to Sci- United States of America, vs. Peter Lee, 26 March 1998: 20. [DoJ Bates number 000023] entists of the People’s Republic of China, March 1998: 25. [DOJ Bates number 000028]. 16. Cordova, Declaration in the Matter of News Release, 26 March 1998: 1. [DoJ Bates See also Cordova, Declaration in the Matter United States vs. Peter Hoong-Yee Lee CR number 000098] of United States vs. Peter Hoong-Yee Lee CR No. 97–1181–TJH, 27 February 1998: 13–14. [DoJ 36. See, for example, GOVERNMENT’S EX No. 97–1181–TJH, 27 February 1998: 18. [DOJ Bates number 000085–000086] PARTE APPLICATION FOR ORDER Bates number 000090] 17. Cordova, Declaration in the Matter of UNSEALING PLEA AGREEMENT, 22 Octo- 53. Transcript of Proceedings (first draft), United States vs. Peter Hoong-Yee Lee CR ber 1999 [DoJ Bates number 00235–00240], and ‘‘Senate Judiciary Subcommittee on Admin- No. 97–1181–TJH, 27 February 1998: 2. [DoJ GOVERNMENT’S EX PARTE APPLICATION istrative Oversight and the Courts Hearing Bates number 000074] FOR ORDERING UNSEALING GOVERN- regarding the Dr. Peter Lee Case, 12 April 18. Cordova, Declaration in the Matter of MENT’S SENTENCING POSITION AND 2000: 29. United States vs. Peter Hoong-Yee Lee CR GOVERNMENT’S FILING OF DEPART- 54. Reporters Transcript of Proceedings, No. 97–1181–TJH, 27 February 1998: 16. [DoJ MENT OF ENERGY ‘‘Impact Statement’’, 25 United States of America, vs. Peter Lee, 26 Bates number 000088] October 1999 [DoJ Bates numbers 00252–00260] March 1998: 21–22. [DOJ Bates number 000024– 19. Cordova, Declaration in the Matter of 37. Robin Staffin, Deputy Assistant Sec- 000025] United States vs. Peter Hoong-Yee Lee CR retary for Research and Development, Office 55. Transcript of Proceedings (first draft), No. 97–1181–TJH, 27 February 1998: 14. [DoJ of Defense Programs, Department of Energy; ‘‘Senate Judiciary Subcommittee on Admin- Bates number 000086] Notra Trulock III, Senior Intelligence Offi- istrative Oversight and the Courts Hearing 20. Cordova, Declaration in the Matter of cer, Office of Energy Intelligence; and Jo- regarding the Dr. Peter Lee Case, 5 April United States vs. Peter Hoong-Yee Lee CR seph S. Mahaley, Director, Office of Security 2000: 15. See also Transcript of Proceedings No. 97–1181–TJH, 27 February 1998: 14–15. [DoJ Affairs, ‘‘Impact Statement’’, 17 February (first draft), ‘‘Senate Judiciary Sub- Bates number 000086–000087] 1998: 2. [DoJ Bates number 00116] committee on Administrative Oversight and 21. Cordova, Declaration in the Matter of 38. Robin Staffin, Deputy Assistant Sec- the Courts Hearing regarding the Dr. Peter United States vs. Peter Hoong-Yee Lee CR retary for Research and Development, Office Lee Case, 12 April 2000: 73. No. 97–1181–TJH, 27 February 1998: 7. [DoJ of Defense Programs, Department of Energy; 56. Transcript of Proceedings (first draft), Bates number 000079] Notra Trulock III, Senior Intelligence Offi- ‘‘Senate Judiciary Subcommittee on Admin- 22. Cordova, Declaration in the Matter of cer, Office of Energy Intelligence; and Jo- istrative Oversight and the Courts Hearing United States vs. Peter Hoong-Yee Lee CR seph S. Mahaley, Director, Office of Security regarding the Dr. Peter Lee Case, 12 April No. 97–1181–TJH, 27 February 1998: 7. [DoJ Affairs, ‘‘Impact Statement’’, 17 February 2000: 34–35. Bates number 000079] 1998: 2. [DoJ Bates number 00116] 57. Transcript of Proceedings (first draft), 23. Cordova, Declaration in the Matter of 39. Transcript of Proceedings (first draft), ‘‘Senate Judiciary Subcommittee on Admin- United States vs. Peter Hoong-Yee Lee CR ‘‘Senate Judiciary Subcommittee on Admin- istrative Oversight and the Courts Hearing

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00056 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S13829 regarding the Dr. Peter Lee Case, 12 April 77. Cox Committee Report, Vol. 1, 88. istrative Oversight and the Courts Hearing 2000: 36. 78. Defense Criminal Investigative Service, regarding the Dr. Peter Lee Case, 5 April 58. Transcript of Proceedings (first draft), ‘‘Report of Investigation,’’ 11 September 2000: 11. ‘‘Senate Judiciary Subcommittee on Admin- 1998: 2. [DoD Bates number D001003] 98. Cordova, Declaration in the Matter of istrative Oversight and the Courts Hearing 79. Transcript of Proceedings (first draft), United States vs. Peter Hoong-Yee CR No. 97 regarding the Dr. Peter Lee Case, 12 April Hearing before the Senate Judiciary Sub- 1181–TJH, 27 February 1998: 12. [DoJ Bates 2000: 86. committee on Administrative Oversight and number 000084] 59. Prosecuting Attorney Transcript of the Courts regarding the Dr. Peter Lee Case, 99. Cordova, Declaration in the Matter of Interview with Senator Arlen Specter in Los 29 March 2000: 51. United States vs. Peter Hoong-Yee Lee CR Angeles, CA, 15 February 2000: 70–71. See 80. Transcript of Proceedings (first draft), No. 97 1181–TJH, 27 February 1998: 7. [DoJ also, Transcript of Proceedings (first draft), Hearing before the Senate Judiciary Sub- Bates number 000079] ‘‘Senate Judiciary Subcommittee on Admin- committee on Administrative Oversight and 101. INFORMATION, United States of istrative Oversight and the Courts Hearing the Courts regarding the Dr. Peter Lee Case, America v. Peter Lee, filed 5 December regarding the Dr. Peter Lee Case, 5 April 29 March 2000: 52–53. 1997:3. [DoJ Bates number 000003) 2000: 41,48. 81. Transcript of Proceedings (first draft), 102. See Brady v. Maryland 373 U.S. 83 60. Transcript of Proceedings (first draft), ‘‘Senate Judiciary Subcommittee on Admin- (1963), in which the Supreme Court declared ‘‘Senate Judiciary Subcommittee on Admin- istrative Oversight and the Courts Hearing that, regardless of the good faith or bad faith istrative Oversight and the Courts Hearing regarding the Dr. Peter Lee Case, 12 April of the prosecution, the suppression of evi- regarding the Dr. Peter Lee Case, 12 April 2000: 31. dence favorable to the accused violated due 2000: 90. 82. Transcript of Proceedings (first draft), process where the evidence is material to ei- 61. John C. Keeney, Principal Deputy As- Hearing before the Senate Judiciary Sub- ther guilt or punishment. This court ruling sistant Attorney General, Criminal Division, committee on Administrative Oversight and imposes an obligation on the Government to Department of Justice, prepared statement the Courts regarding the Dr. Peter Lee Case, provide to the defense any evidence or infor- submitted to the Senate Judiciary Sub- 12 April 2000: 58. mation in its possession which could be fa- committee on Administrative Oversight and 83. Transcript of Proceedings (first draft), vorable to the accused. the Courts Concerning the Peter Lee Espio- Hearing before the Senate Judiciary Sub- committee on Administrative Oversight and Mr. SPECTER. Mr. President, I ask nage Case,’’ 12 April 2000: 6. unanimous consent that two letters 62. John C. Keeney, Principal Deputy As- the Courts regarding the Dr. Peter Lee Case, sistant Attorney General, Criminal Division, 12 April 2000: 58–59. from the Justice Department be print- Department of Justice, prepared statement 84. Transcript of Proceedings (first draft), ed in the RECORD. submitted to the Senate Judiciary Sub- ‘‘Senate Judiciary Subcommittee on Admin- There being no objection, the letters committee on Administrative Oversight and istrative Oversight and the Courts Hearing were ordered to be printed in the regarding the Dr. Peter Lee Case, 12 April the Courts Concerning the Peter Lee Espio- RECORD, as follows: 2000: 32–33. nage Case,’’ 12 April 2000: 6. U.S. DEPARTMENT OF JUSTICE, 63. Prosecuting Attorney, ‘‘Government’s 85. Transcript of Proceedings (first draft), ‘‘Senate Judiciary Subcommittee on Admin- FEDERAL BUREAU OF INVESTIGATION, Position With Respect to Sentencing Fac- Washington, DC, December 19, 2001. tors: Declarations of [Prosecuting Attor- istrative Oversight and the Courts Hearing regarding the Dr. Peter Lee Case, 12 April Hon. ARLEN SPECTER, ney],’’ 27 February 1998: 7. U.S. Senate, Washington, DC. 64. Department of Energy, ‘‘Impact State- 2000: 34. 86. Transcript of Proceedings (first draft), DEAR SENATOR SPECTER: We have no objec- ment,’’ 17 February 1998: 3: [DoJ Bates num- ‘‘Senate Judiciary Subcommittee on Admin- tion on national security grounds to publica- ber 00117] istrative Oversight and the Courts Hearing tion of your final report on the Wen Ho Lee 65. Gilbert Cordova, ‘‘Declaration of Gil- regarding the Dr. Peter Lee Case, 12 April investigation. We have not reviewed the re- bert R. Cordova,’’ 23 March 1998; 2. port for the accuracy of the facts or conclu- 66. Transcript of Proceedings (first draft), 2000: 34. 87. See Al Heiman, fax cover sheet of No- sions reflected therein. ‘‘Senate Judiciary Subcommittee on Admin- vember 10, 1997 to FBI Special Agent Dave Sincerely, istrative Oversight and the Courts Hearing LeSueur, and Dr. Richard Twogood, memo- JOHN E. COLLINGWOOD, regarding the Dr. Peter Lee Case, 12 April randum to Bill Cleveland and Al Heiman, Assistant Director, Of- 2000: 61. ‘‘Classification Guidelines’’, November 10, ficer of Public and 67. Prosecuting Attorney, Transcript of 1997. Congressional Af- Interview with Senator Arlen Specter in Los 88. J.G. Schuster, Jr., ‘‘REQUEST FOR fairs. Angeles, CA, 15 February 2000: 72. CLASSIFICATION GUIDANCE,’’ 14 Novem- 68. Prosecuting Attorney, Transcript of ber 1997. U.S. DEPARTMENT OF JUSTICE, Interview with Senator Arlen Specter in Los 89. Transcript of Proceedings (first draft), FEDERAL BUREAU OF INVESTIGATION, Angeles, CA, 15 February 2000: 76. ‘‘Senate Judiciary Subcommittee on Admin- 69. Prosecuting Attorney, Transcript of Washington, DC, December 20, 2001. istrative Oversight and the Courts Hearing Interview with Senator Arlen Specter in Los Hon ARLEN SPECTER, regarding the Dr. Peter Lee Case, 29 March Angeles, CA, 15 February 2000: 72. U.S. Senate, Washington, DC. 2000: 100. 70. Transcript of Proceedings (first draft), DEAR SENATOR SPECTER: We have no objec- 90. Transcript of Proceedings (first draft), tion on national security grounds to publica- ‘‘Senate Judiciary Subcommittee on Admin- ‘‘Senate Judiciary Subcommittee on Admin- istrative Oversight and the Courts Hearing tion of your final report on the Peter lee in- istrative Oversight and the Courts Hearing vestigation. We have not reviewed the report regarding the Dr. Peter Lee Case, 29 March regarding the Dr. Peter Lee Case, 29 March 2000: 87–88. for the accuracy of the facts or conclusions 2000: 105–107. reflected therein. 71. SSA, National Security Law Unit, 91. Transcript of Proceedings (first draft), ‘‘Royal Tourist,’’ e-mail to FBIHQ Super- Sincerely, ‘‘Senate Judiciary Subcommittee on Admin- JOHN E. COLLINGWOOD, visory Special Agent, 25 November 1997: 1. istrative Oversight and the Courts Hearing 72. Dan Bauer, Colonel, US Army, ‘‘Pos- Assistant Director, Of- regarding the Dr. Peter Lee Case, 29 March fice of Public and sible Espionage Arrest Update (U)—INFOR- 2000: 106–107. MATION MEMORANDUM,’’ MEMORANDUM Congressional Af- 92. Prosecuting Attorney, Transcript of fairs. FOR THE SECRETARY OF DEFENSE, DEP- Interview with Senator Arlen Specter in Los UTY SECRETARY OF DEFENSE, 26 Novem- Angeles, CA, 15 February 2000: 63. Mr. SPECTER. Mr. President, how ber 1997: 1. 93 Stephen Preston, General Counsel of the much time do I have remaining? 73. Transcript of Proceedings (first draft), Navy, letter to the Cox Committee, 21 May The PRESIDING OFFICER. One ‘‘Senate Judiciary Subcommittee on Admin- 1999: 1. minute. istrative Oversight and the Courts Hearing 94 Stephen Preston, General Counsel of the Mr. SPECTER. As promised, I yield regarding the Dr. Peter Lee Case, 12 April Navy, letter to the Cox Committee, 21 May back the remainder of my time. 2000: 92–93. 1999: 2. 74. Transcript of Proceedings (first draft), 95. Transcript of Proceedings (first draft), VOTE ON CONFERENCE REPORT ACCOMPANYING ‘‘Senate Judiciary Subcommittee on Admin- ‘‘Senate Judiciary Subcommittee on Admin- H.R. 3061 istrative Oversight and the Courts Hearing istrative Oversight and the Courts Hearing The PRESIDING OFFICER. All time regarding the Dr. Peter Lee Case, 12 April regarding the Dr. Peter Lee Case, 29 March having expired, the question occurs on 2000: 40. 2000: 79. agreeing to the conference report to ac- 75. Jon P. Jennings, letter to Senator Orrin 96. Transcript of Proceedings (first draft), company H.R. 3061. G. Hatch, 18 April 2000: 2. ‘‘Senate Judiciary Subcommittee on Admin- Mr. SPECTER. Mr. President, I ask 76. Transcript of Proceedings (first draft), istrative Oversight and the Courts Hearing ‘‘Senate Judiciary Subcommittee on Admin- regarding the Dr. Peter Lee Case, 29 March for the yeas and nays. istrative Oversight and the Courts Hearing 2000: 24–25. The PRESIDING OFFICER. Is there a regarding the Dr. Peter Lee Case, 12 April 97. Transcript of Proceedings (first draft), sufficient second? 2000: 93–94. ‘‘Senate Judiciary Subcommittee on Admin- There appears to be.

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00057 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S13830 CONGRESSIONAL RECORD — SENATE December 20, 2001 The clerk will call the roll. staff, Bettilou Taylor—Senator Tay- and passed, the motion to reconsider be The assistant legislative clerk called lor—Mary Dietrich, Sudip Parikh, and laid upon the table, and any state- the roll. Emma Ashburn. ments relating to the bill be printed in Mr. REID. I announce that the Sen- This was an extraordinary bill, very the RECORD, with no intervening ac- ator from Hawaii (Mr. AKAKA) is nec- complicated, $123 billion, lots of re- tion. essarily absent. quests, lots of pages, lots of proof- The PRESIDING OFFICER. Without Mr. NICKLES. I announce that the reading, and we are glad it is finished. objection, it is so ordered. Senator from North Carolina (Mr. I yield the floor. The bill (H.R. 1088) was read the third HELMS) and the Senator from Nevada f time and passed. (Mr. ENSIGN) are necessarily absent. The PRESIDING OFFICER (Mrs. EXECUTIVE SESSION f CLINTON). Are there any other Sentors in the Chamber desiring to vote? The result was announced—yeas 90, EXECUTIVE CALENDAR PROVIDING FOR SINE DIE AD- nays 7, as follows: Mr. DASCHLE. I ask unanimous con- JOURNMENT OF THE SENATE [Rollcall Vote No. 378 Leg.] sent that the Senate proceed to execu- AND HOUSE OF REPRESENTA- TIVES YEAS—90 tive session to consider Executive Cal- Allen Domenici Lott endar Nos. 616 and 617; that the nomi- Mr. DASCHLE. Madam President, I Baucus Dorgan Lugar nations be confirmed, the motions to now call up H. Con. Res. 295, the ad- Bayh Durbin McConnell reconsider be laid upon the table, any journment resolution. I ask that the Bennett Edwards Mikulski statements relating to the nominations Biden Enzi Miller Senate vote on adoption of the concur- Bingaman Feinstein Murkowski be printed in the RECORD, the President rent resolution, with no intervention Bond Frist Murray be immediately notified of the Senate’s action or debate. Boxer Graham Nelson (FL) action, and the Senate return to legis- Breaux The PRESIDING OFFICER. The Gramm Nelson (NE) lative session. Brownback Grassley Reed clerk will report the concurrent resolu- The PRESIDING OFFICER. Is there Bunning Gregg Reid tion by title. Burns Hagel Roberts objection? Byrd Harkin Rockefeller Mr. HARKIN. Reserving the right to The assistant legislative clerk read Campbell Hatch Santorum as follows: Cantwell Hollings Sarbanes object. Carnahan Hutchinson Schumer The PRESIDING OFFICER. The Sen- A concurrent resolution (H. Con. Res. 295) Carper Hutchison Sessions ator from Iowa. providing for the sine die adjournment of the Chafee Inhofe Shelby Mr. HARKIN. I ask the leader, what first session of the One Hundred Seventh Cleland Inouye Smith (OR) Congress. Clinton Jeffords Snowe nominees? Cochran Johnson Specter Mr. DASCHLE. I advise the Senator There being no objection, the Senate Collins Kennedy Stabenow from Iowa that these nominees are for Conrad Kerry Stevens proceeded to consider the concurrent Corzine Kohl Thomas the First Vice President of the Export- resolution. Craig Kyl Thompson Import Bank and for a member of the Mr. DASCHLE. I ask for the yeas and Crapo Landrieu Thurmond Board of Directors of the Export-Im- nays. Daschle Leahy Torricelli port Bank. Dayton Levin Warner The PRESIDING OFFICER. Is there a Mr. HARKIN. I have no objection. DeWine Lieberman Wellstone sufficient second? Dodd Lincoln Wyden The PRESIDING OFFICER. Without There is a sufficient second. NAYS—7 objection, it is so ordered. The question is on agreeing to the Allard McCain Voinovich The nominations were considered and Feingold Nickles confirmed, as follows: concurrent resolution. Fitzgerald Smith (NH) EXPORT-IMPORT BANK OF THE UNITED STATES The clerk will call the roll. NOT VOTING—3 Eduardo Aguirre, Jr., of Texas, to be First Mr. REID, I announce that the Sen- Akaka Ensign Helms Vice President of the Export-Import Bank of ator from Hawaii (Mr. AKAKA) is nec- the United States for a term expiring Janu- essarily absent. The conference report was agreed to. ary 20, 2005. Mr. DURBIN. Madam President, I J. Joseph Grandmaison, of New Hampshire, Mr. NICKLES, I announce that the move to reconsider the vote. to be a Member of the Board of Directors of Senator from North Carolina (Mr. Mr. LEAHY. I move to lay that mo- the Export-Import Bank of the United States HELMS), and the Senator from Nevada tion on the table. for a term expiring January 20, 2005. (Mr. ENSIGN), and the Senator from The motion to lay on the table was f Kansas (Mr. ROBERTS) are necessarily agreed to. absent. LEGISLATIVE SESSION The PRESIDING OFFICER. The Sen- The PRESIDING OFFICER (Mr. MIL- ator from Louisiana. The PRESIDING OFFICER. The Sen- LER). Are there any other Senators in Mr. BREAUX. Madam President, I ate will now return to legislative ses- the Chamber desiring to vote? yield to the Senator from Pennsyl- sion. The result was announced—yeas 56, vania. f nays 40, as follows: The PRESIDING OFFICER. The Sen- ator from Pennsylvania. INVESTOR AND CAPITAL MARKETS [Rollcall Vote No. 379 Leg.] Mr. SPECTER. Madam President, I FEE RELIEF ACT YEAS —- 56 congratulate all those who worked on Mr. DASCHLE. I ask unanimous con- Baucus Edwards Lincoln this bill. sent that the Senate proceed to the im- Bennett Feingold McCain I have already extended my con- mediate consideration of Calendar No. Biden Feinstein Mikulski Bingaman Fitzgerald Miller gratulations to my distinguished col- 74, H.R. 1088. Boxer Graham Murkowski league, Senator HARKIN. I also thank The PRESIDING OFFICER. The Breaux Gramm Murray Senator BYRD and Senator STEVENS. clerk will report the bill by title. Bunning Hagel Nelson (FL) Byrd Harkin Nelson (NE) We have a very devoted staff. I would The legislative clerk read as follows: Cantwell Hollings Reed like to thank them. For the majority: Carnahan Inouye A bill (H.R. 1088) to amend the Securities Reid Carper Jeffords Ellen Murray who is the majority clerk Exchange Act of 1934 to reduce fees collected Rockefeller by the Securities and Exchange Commission, Chafee Johnson and an extraordinary worker; Jim Cleland Kennedy Sarbanes Sourwine, Mark Laisch, Erik Fatemi, and for other purposes. Cochran Kerry Shelby Lisa Bernhardt, Adrienne Hallett, There being no objection, the Senate Corzine Kohl Stabenow Adam Gluck, and Carole Geagley. I did proceeded to consider the bill. Daschle Landrieu Stevens Dodd Leahy Torricelli not know the majority had so many Mr. DASCHLE. I ask unanimous con- Dorgan Levin Wellstone more than we do. On the minority sent that the bill be read a third time Durbin Lieberman Wyden

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00058 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S13831 NAYS —- 40 the country, are already sharpening plicated package, only passed late last Allard Domenici Santorum their pencils, and the editorial writers night by the House of Representatives, Allen Enzi Schumer are already banging away on their and to try to explain it sufficiently to Bayh Frist Sessions typewriters, as well as the political colleagues in the Senate in order for Bond Grassley Smith (NH) Brownback Gregg Smith (OR) consultants and all the special-interest people to take a rational vote on that Burns Hatch Snowe groups are preparing, already, their at- legislation. Campbell Hutchinson Specter tack ads to blame someone for the fail- To those who try to blame Leader Clinton Hutchison Thomas TOM DASCHLE, I say, baloney. I was Collins Inhofe ure of this Congress to complete and Thompson Conrad Kyl pass an economic stimulus package. there. I worked hard for an agreement. Thurmond Craig Lott But we did not in the end—and we do Voinovich Over the next several days, and pos- Crapo Lugar sibly even over the next several weeks, not now—have the votes to pass such a Dayton McConnell Warner DeWine Nickles we are going to hear some say: Well, it package in the Senate. I know that. We is TOM DASCHLE’S fault that we do not all know that. And it serves no one to NOT VOTING—4 have an economic stimulus package be- bring up, in the last few hours, a very Akaka Helms complicated package only for political Ensign Roberts cause he did not bring the package to the Senate floor. We will also hear purposes when we know the votes are The concurrent resolution (H. Con. that, no, it is the Republican leader’s not there. Res. 295) was agreed to, as follows: fault because they only supported a The good news is that we came very H. CON. RES. 295 package that helped the rich special in- close and can use the progress that we Resolved by the House of Representatives (the terests. Or perhaps we will hear that, made in these negotiations to pass a Senate concurring), That when the House ad- no, it is the fault of the President of package when we return in January. journs on the legislative day of Thursday, the United States for not providing the Both sides moved. We moved on taxes. December 20, 2001, or Friday, December 21, leadership to bring both sides together. We moved on health coverage. But only 2001, on a motion offered pursuant to this if we allow the outside forces to poison concurrent resolution by its Majority Leader The blame game has now begun. I have noticed the papers already this the wells so badly that we cannot nego- or his designee, it stand adjourned sine die, tiate will we not be able to reach an or until Members are notified to reassemble morning. pursuant to section 2 of this concurrent reso- The Wall Street Journal said: The agreement. lution, whichever occurs first; and that when White House and congressional leaders Both sides must realize in a divided the Senate adjourns at the close of business fail to reach a compromise and now government we must compromise or on Thursday, December 20, 2001, or Friday, turn their efforts instead to casting nothing will get done. Businesses will December 21, 2001, on a motion offered pursu- blame for its failure. get no relief or incentives to grow. In- ant to this concurrent resolution by its Ma- The front page of the Washington dividuals will get no stimulus checks. jority Leader or his designee, it stand ad- Unless we come together and reach Post this morning said: Yesterday, as journed sine die, or until Members are noti- an agreement, businesses will get no both sides began engaging in a furious fied to reassemble pursuant to section 2 of relief. They will get no incentives to legislative end game designed to assign this concurrent resolution, whichever occurs grow. Individuals, on the other hand, first. blame to the other party for will get no stimulus checks. They will SEC. 2. The Speaker of the House and the failure... get no extended unemployment com- Majority Leader of the Senate, acting jointly The front page of the New York pensation. They will get no Federal as- after consultation with the Minority Leader Times said the same thing, in essence. of the House and the Minority Leader of the sistance to buy their health insurance. Senate, shall notify the Members of the They said: The Bush administration, For the first time in this country’s House and the Senate, respectively, to reas- along with others, turned instead to history, we had the Federal Govern- semble at such place and time as they may partisan finger pointing over who was ment paying for over one-half of an un- designate whenever, in their opinion, the to blame for the impasse. employed worker’s health insurance. public interest shall warrant it. So, my colleagues and folks around Now they must pay 100 percent. We Mr. DASCHLE. Mr. President, I move the country, the blame game has al- came close. to reconsider the vote. ready begun. The special interests in both our Mr. DURBIN. I move to lay that mo- But one thing is very certain, and Democratic Party and our Republican tion on the table. that is Americans cannot go to the gro- Party must realize that in representing The motion to lay on the table was cery store and buy bread and buy milk their constituents, they need to be agreed to. with blame. It does not work. flexible. They cannot insist that those Mr. DASCHLE. Mr. President, it was When Congress fails to act, it is not of us who care about them be forced my hope that we could go immediately our political parties that are hurt but into a ‘‘we want it all or nothing’’ situ- to the final vote on the conference re- the people we represent are truly the ation. In that case, the ‘‘all or noth- port on the Defense appropriations bill. ones who are hurt. ing’’ situation produces nothing. I make that recommendation. I suggest Unfortunately, our political parties Is ‘‘nothing’’ what they want for the the absence of a quorum. sometimes believe that they are actu- people they represent? Can they tell The PRESIDING OFFICER. The ally helped when nothing is done so the workers, over the holidays, that clerk will call the roll. that they can blame the other side for not getting $14 billion in stimulus The bill clerk proceeded to call the failure and perhaps pick up a few con- checks and not getting $18 billion in roll. gressional seats or perhaps even take unemployment money and not getting Mr. BREAUX. Mr. President, I ask over the White House. $21 billion more in health assistance unanimous consent the order for the Perhaps we, as members of the cen- was the right thing for them because quorum call be rescinded. trist coalition, should have gotten in- there were other provisions that would The ACTING PRESIDENT pro tem- volved sooner. Maybe we should have not directly help them that was also pore. Without objection, it is so or- offered our congressional proposal, part of the package? dered. blending the best ideas from both sides, Can business lobbyists say they are f earlier than we did. It might have better off with no accelerated deprecia- helped. tion because they wanted it for 3 ECONOMIC STIMULUS PACKAGE Perhaps the White House should have years? Or are they really better off Mr. BREAUX. Mr. President and col- become engaged earlier than they did. with no AMT relief because they want- leagues, while we are waiting some Maybe they should have been stronger ed a permanent repeal instead of only a other colleagues to return to this in telling both sides to work together partial repeal? Chamber to negotiate, I would like to for an agreement. Is it not better to reach an agree- make just a short comment on the eco- Perhaps, perhaps, maybe, maybe, ment that you can get 70 percent of nomic stimulus package. might have, might have, but in the end what you want and then fight for the I would imagine that right now the our biggest enemy was time. There remainder in the future? political pundits of Washington, and simply was not sufficient time remain- Neither Medicare nor Social Security really the political pundits all around ing to take up an extremely com- started out providing everything they

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00059 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S13832 CONGRESSIONAL RECORD — SENATE December 20, 2001 provide today. Government is a gradual Without objection, it is so ordered. cludes the allocation of $20 billion in thing, and that is not bad. It is what Mr. DASCHLE. I thank all of my col- emergency supplemental funding pro- American Government does best. We leagues. vided by Congress immediately after evolve. We cannot be stagnant. f the September 11 attack. More and more Americans look at These funds fulfill the commitment DEPARTMENT OF DEFENSE AP- Washington and wonder why it does made by Congress to respond to the PROPRIATIONS ACT, 2002—CON- not work as it should. Why do grown needs of the victims of the September FERENCE REPORT men and women fight and argue when 11 attack. I commend the Governor of solutions need to be reached? Espe- The PRESIDING OFFICER (Mr. New York, the Mayor of New York cially is this true as a feeling among DODD). The clerk will report the con- City, and the two Senators from New younger voters. ference report. York, for their stalwart work to ensure Let me conclude by pointing out that The assistant legislative clerk read these funds meet the needs of their in the height of the Presidential elec- as follows: constituents. tion squabble in Florida, the Gallup or- The committee of conference on the dis- The enhanced funding provided in Di- ganization asked Americans at that agreeing votes of the two Houses on the vision B of this bill for homeland de- time, in a national poll, about their po- amendment of the Senate to the bill (H.R. 3338) making appropriations for the Depart- fense will also have a significant effect litical affiliation. Shockingly, for some ment of Defense for the fiscal year ending on the security of this nation. Americans, the poll came back and said September 30, 2002, and for other purposes, It is appropriate that the homeland that 42 percent of Americans identified having met, have agreed that the House re- defense funding be included in this themselves as Independents. That was cede from its disagreement to the amend- bill—in the war against terrorism, more than who identified themselves as ment of the Senate, agree to the same with there are no boundaries. either Democrats or Republicans. an amendment, and the Senate agree to the The money in this bill to secure our There is a message there: Americans same, signed by all conferees on the part of borders, our airports, our ports, to pro- do not want blame as a theme song for the two Houses. tect against bioterrorism and to assist their Government. They want results. (The conference report is printed in first responders will send a strong sig- They want results that help them, and the House proceedings of the RECORD of nal to our citizens, and our potential they do not particularly care who pro- December 19, 2001.) adversaries, of our determination to duces it. The PRESIDING OFFICER. The Sen- win this war on terrorism on every I hope we can all learn from this ex- ator from Hawaii. front. Mr. INOUYE. Mr. President, I am perience. The greater challenges ahead Turning more specifically to the un- pleased to rise today to offer my un- can be solved only by working for the derlying defense bill in Division A, qualified support for the conference greater good. We can only do that by there are two matters in particular I agreement that was just reported. I am working together in order to achieve wish to address today: missile defense pleased to present the recommenda- it. and the tanker leasing initiative. I yield the floor. tions to the Senate today as division A The Senate version of the bill pro- Mr. MILLER addressed the Chair. of this measure. The recommendations vided the full $8.3 billion requested by The ACTING PRESIDENT pro tem- contain the result of lengthy negotia- Secretary Rumsfeld for missile defense pore. The Senator from Georgia. tions between the House and Senate programs. The House bill provided ap- Mr. DASCHLE addressed the Chair. managers and countless hours of work proximately $7.8 billion. The ACTING PRESIDENT pro tem- by our staffs acting on behalf of all pore. The majority leader. During our conference, we were in- Members. formed of two major program changes Mr. DASCHLE. Mr. President, I ap- The agreement provides $317.2 billion, in missile defense. preciate very much the Senator from the same as the House and Senate lev- The Undersecretary of Defense for ac- Georgia allowing me to make a unani- els, consistent with our 302(b) alloca- quisition, on behalf of Secretary Rums- mous consent request. tions. feld, reported that the department UNANIMOUS CONSENT AGREEMENT—H.R. 3338 In order to accommodate Members of would terminate the Navy area defense CONFERENCE REPORT the Senate, may I request that I be system, and the SBIRS-low satellite Mr. DASCHLE. Mr. President, we given the opportunity to now set aside program. have been negotiating with a number my statement and yield to the Senator Funding for these two programs, to- of our colleagues regarding the Defense from Arizona for his statement. Upon taling more than $700 million, was re- appropriations conference report. I his conclusion, I will resume my state- aligned to other defense priorities would like to propound a unanimous ment. consent request, with an expectation The PRESIDING OFFICER. Is there within and outside missile defense. that it may need further clarification. objection? For example, of the Navy area pro- I ask unanimous consent that the Without objection, it is so ordered. gram funds, $100 million was reserved Senator from Arizona, Mr. MCCAIN, be The Chair recognizes the Senator for termination liabilities for the pro- recognized; that the Senator from West from Arizona. gram and $75 million was transferred to Virginia, the chairman of the Appro- Mr. MCCAIN. Mr. President, I am not the airborne laser program. priations Committee, be recognized; ready to give my statement yet. I am From the SBIRS-low termination, that the two subcommittee chairs, the still having my people come over with $250 million is reserved for satellite Senator from Alaska and the Senator information. As a matter of fact, we sensor technology development—which from Hawaii, also be recognized; and haven’t even gotten through the entire could all be used for further work that the Senator from Michigan be rec- bill yet. I will be ready shortly. under the existing SBIRS-low con- ognized; that upon the recognition of The PRESIDING OFFICER. The tracts, if the department so chooses. those Senators and their remarks in re- Chair recognizes the Senator from Addressing the significance of pro- gard to the Defense appropriations con- Alaska. tecting our deployed forces, the con- ference report, the Senate vote imme- Mr. STEVENS. Mr. President, I join ference agreement provides an addi- diately on its final passage. the distinguished chairman of the de- tional $60 million over the budget re- The ACTING PRESIDENT pro tem- fense subcommittee, Senator INOUYE, quest to accelerate production of the pore. Is there objection? in presenting the fiscal year 2002 De- Patriot PAC–3 missile. Mrs. HUTCHISON. Reserving the partment of Defense conference report In his statement, the chairman of the right to object, I just ask the question, to the Senate. subcommittee articulated his support Will the subcommittee chairs be desig- This bill enjoys my total support, for the air refueling tanker initiative, nating time from their time? and I urge all my colleagues to support and I appreciate his kind words on my Mr. DASCHLE. The answer is yes. It this conference report, and the funds role in that effort. is not necessarily in that order, I would provided herein that are vital to our Contrary to some reports, this provi- clarify, Mr. President. national security. sion was not a last minute industry The ACTING PRESIDENT pro tem- In addition to the base funding for bailout, hidden from public view. In pore. Is there objection? the current fiscal year, this bill also in- fact, this responds to military need,

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00060 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S13833 and unforeseen economic cir- The law states that the cost to the Also, our partners in the House, cumstances—and opportunities. Air Force for the lease cannot exceed Chairman LEWIS and Mr. MURTHA, and The effort to lease these aircraft re- 90 percent of the fair market value of the full committee chairman, Con- flects an extensive review of the Air the aircraft. That means the Secretary gressman BILL YOUNG and ranking Force’s needs, and the crisis it faces in cannot sign a contract if the lease cost member, DAVE OBEY, deserve tremen- the air refueling fleet. would exceed that threshold. dous credit for managing their bill in This lease provision, provides permis- The Secretary must report to the the House, and working out this pack- sive authority for the Secretary of the Congress all the details of any proposed age in conference. Air Force to replace the 134 oldest KC– contract in advance of signing any Mr. President, I yield to the Senator 135E aircraft with new tankers. agreement. We will get to look at this from Texas, Mrs. HUTCHISON. These aircraft average 42 years of contract before the deal is set. The PRESIDING OFFICER. The Sen- age, and have not received the com- Mr. President, nothing in the leasing ator from Texas is recognized. prehensive ‘‘R’’ model refurbishment. authority provided in this bill is direc- Mrs. HUTCHISON. Mr. President, I All of these aircraft are operated by tive—the discretion rests solely with thank Senator STEVENS and Senator the Air National Guard, at bases the Secretary of the Air Force. INOUYE for the hard work they did on throughout the Nation. The lease will I have had extensive discussions this bill. Since this bill was left to be provide the new tankers to the Air about this initiative with the Sec- the last appropriations bill passed this Force, and permit recently refurbished retary, with the former Commander of year, it had many difficulties. During ‘‘R’’ models to cascade to the Guard. the Transportation Command, Gen. this time, our Armed Forces were pros- This permits the National Guard to Robertson, and other DOD officials. ecuting a war on last year’s budget. have a common fleet of aircraft, pro- All have endorsed this approach. That is very serious and it is unaccept- viding significant training and mainte- The language in this bill is the prod- able. We must pass this bill today. It is nance cost savings. They daily do the uct of extensive discussions with CBO a good bill. refueling operations for our Air Force and OMB. No objection has been raised. Our armed services need the extra planes nationally and throughout the Secretary Rumsfeld’s letter on the help that is in this bill. It provides $26 world. bill did not object to this initiative, billion more in spending for the De- The KC–135E aircraft require exten- nor did the Department’s detailed ap- partment of Defense than was appro- sive depot maintenance. Once every 5 peals to the Appropriations Conference. priated last year. That gives us the years, we lose that aircraft for an aver- Since taking office, Secretary Rums- added equipment we need to be in Af- age of 428 days, and many more than feld has sought to chart a course to ghanistan and throughout the world, as we are today. It also reduces the mili- 600 days. manage the Pentagon consistent with That means a squadron loses that the best practices in the private sector. tary/civilian paygap by funding a pay aircraft for at least 15 months, up to 2 This initiative seeks to do just that— raise of 5 percent across the board and up to 10 percent for targeted ranks years. give the Secretary all the tools we can with low-retention rates. At any one time, one third of the to meet the Department’s moderniza- Thank goodness we are trying to ad- fleet is unavailable for service—red- tion needs, within the tight budget dress people who are leaving the armed lined—putting that much more pres- constraints he will face. services because we just can’t compete sure on the rest of the force. The airlines lease aircraft, private with the private sector. Also, I want to During peacetime, one might argue businesses lease aircraft, our ally mention the TRICARE For Life; $3.9 we can survive with an inadequate air Great Britain currently leases U.S. billion in this bill implements refueling fleet. Now, in wartime, the built C–17 aircraft. TRICARE For Life. This is something I price for that failure becomes clear. In addition, Great Britain has issued worked on for a long time to make sure Every sortie flown into Afghanistan a solicitation to lease air refueling that those who have served in our mili- requires at least two, and sometimes as tankers, and the Boeing 767 is the lead tary, who have done what we asked many as four, aerial refuelings. This is candidate. them to do for our country, will never the highest rate of sustained oper- We did not decide to choose the 767. be left without full medical care. That ations we have maintained since the The Air Force told us this is the right is something they deserve, it is some- gulf war. aircraft for the mission. thing we promised, and it is a promise In the 10 years since that conflict, we Gen. Jumper, the Air Force Chief, en- we must keep. have not purchased one new tanker— visions moving the Air Force to a com- I am very pleased that, finally, we’ve watched the fleet age and dete- mon wide body platform for a range of Desert Storm veterans are getting the riorate. I know the feeling of watching missions—he determined the 767 is the notice they deserve for the symptoms a fuel gauge determine the fate of an best platform. that one in seven of them have shown aircraft and crew. It is not a com- Interestingly, two of our closest al- after returning to our country after fortable or pleasant one. I remember lies—Italy and Japan—have already serving in Desert Storm. One in seven one time I ran out of fuel on landing signed contracts to purchase 767 tank- of the people who served in the Desert and had to have the aircraft towed off ers on a commercial basis. Storm operation came back with symp- the field. Some have suggested that this provi- toms and different stages of debilita- This may sound like an arcane dis- sion should have opened the door to tion that they did not have when they cussion, compared to the allure of new competition with Airbus. went to serve our country. F–22’s, or B–2 bombers, but let me give The problem is that Airbus does not But for years, the Department of De- you an old transport pilot’s perspec- have a tanker on the world market. fense and the Department of Veterans tive. More telling, two of the Airbus found- Affairs have denied there was any kind Our forces today have virtually no ing partners—Britain and Italy—have of causal connection between these margin for error—an F–15 doesn’t glide both opted for the American-built symptoms and their service. It just very long, and an F–18 that cannot tanker for their military. wasn’t plausible. make the carrier deck has little hope Personally, I have complete con- I happened to learn about some re- for survival. fidence we can extend this authority to search that was being done at the Uni- We can buy the exciting, and needed, the Secretary of the Air Force, and he versity of Texas, Southwestern Medical new weapons platforms but without the will only use it if he believes it is abso- School, that did find a causal connec- gas they’ll never get home after the lutely in the best interest of the Air tion in a very small unit; it was the fight. Force. first research that really showed the Some have suggested the leasing ap- I want to close by thanking again our causal connection between actual brain proach is not a good deal for the Gov- Chairman, Senator INOUYE, for his damage and service in the gulf war. ernment. That is simply wrong. This leadership in moving this bill through This last week, I am proud to say, provision includes the most stringent committee, the floor and conference in the Secretary of Veterans Affairs, Sec- requirements ever set for an aircraft only 15 days—an incredible achieve- retary Principi, released a study indi- leasing program. ment. cating that gulf war vets are twice as

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00061 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S13834 CONGRESSIONAL RECORD — SENATE December 20, 2001 likely to get ALS; that is, Lou Gehrig’s STEVENS for working in a bipartisan Communities—they can be as small disease. To his credit, Secretary way to assure our troops that we appre- as a neighborhood block or nonprofit Principi immediately widened the gulf ciate them and we are going to give organizations, houses of worship, busi- war presumption to cover victims of them everything they need to do the nesses or local governments—are en- Lou Gehrig’s disease. I have also ex- job they are doing. couraged to choose some kind of tended for 5 years—and the President I yield the floor. project that will unite and help their has signed the bill—the presumption The PRESIDING OFFICER. The Sen- communities. It is a way they can give that the people with these symptoms ator from Hawaii. back to their community. would still be able to get the benefits Mr. INOUYE. On behalf of Senator Applications and the assigning of to which they are entitled, even though STEVENS and I, I express our gratitude names for each project will be handled it hasn’t been settled exactly what to the Senator from Texas for her kind by the Points of Light Foundation. Ba- Desert Storm disease is. remarks. sically, we will see a project in a local So the bill before us today does have UNANIMOUS CONSENT AGREEMENT—S. 1214 community dedicated to one of the vic- $5 million to continue the research Mr. INOUYE. Mr. President, I ask tims of September 11. The Points of that shows that causal connection. unanimous consent that when the Sen- Light Foundation will set up a Web That will not only help keep our prom- ate considers Calendar No. 161, S. 1214, site, applications, and procedures for ise to the people who served in Desert the port security bill, the only amend- this. This is privately funded. It is an Storm, but it will also help us under- ment in order be the Hollings-McCain- opportunity for our neighbors, cowork- stand those whom we are sending today Graham substitute amendment, which ers, and communities across the United into places where there could be chem- is at the desk; that there be a time lim- States to decide what will be a living ical warfare and what we might do to itation for debate of 17 minutes to be legacy to those who died by helping give them the best protection against divided as follows: 5 minutes each for each other. that chemical warfare. It will also help Senators HOLLINGS, MCCAIN, and MUR- The Points of Light Foundation will us to inoculate and treat those who KOWSKI, and 2 minutes for Senator track each project’s progress on their might be affected by chemical warfare HUTCHISON; that upon the use or yield- Web site. The only rule is that quali- in the future. This is something I ing back of time, the substitute amend- fied projects should be started by Sep- worked on in the bill, and I appreciate ment be agreed to, the bill, as amend- tember 11, 2002. Then on that day, as so much Senator INOUYE and Senator ed, be read the third time and passed, all over America we gather to grieve STEVENS supporting this particular and the motion to reconsider be laid over the first anniversary of the attack cause because I think these veterans upon the table, with no further inter- that enraged the world, we will be able have been ignored for too long. It is vening action or debate. to look over thousands and thousands The PRESIDING OFFICER. Is there time we treated them the way they de- of selfless acts that made our country objection? serve to be treated, and that is to give better. them the medical care and the research Without objection, it is so ordered. Mr. INOUYE. I yield 5 minutes to the In our sadness, we can create thou- to find the cause of the debilitating sands of points of light across our Na- disease that we see in so many of the Senator from Michigan. The PRESIDING OFFICER. The Sen- tion and show the world that our re- people. solve was not fleeting and our memo- Finally, I am very pleased that the ator from Michigan is recognized. ries are not short. They will see the bill provides for missile defense. Clear- The PRESIDING OFFICER. The unity in the spirit of America. ly, we now have a cause to go forward Chair recognizes the Senator from I have many Members to thank for on missile defense. I have always Michigan. making the USA Act happen. First and thought it was better to err on the side Ms. STABENOW. I thank the Chair. Mr. President, I rise to applaud a pro- foremost, I thank my chief cosponsor, of doing more for defense, even if we Senator JON KYL, for his commitment weren’t sure what the threats were. vision in the supplemental portion of Now we know there are people through- the Defense appropriations conference and hard work. I thank the chairman out the world who will attack Ameri- report. This conference report includes and ranking member of the Appropria- cans just because we are Americans. So a bill authored by myself and Senator tions Subcommittee on Defense, Sen- we must defend against that. That is KYL that will help honor the victims of ators INOUYE and STEVENS, for their what the missile defense system will the September 11 attacks. It is called support. I also express my gratitude to prepare our country to do. the Unity in the Spirit of America Act, Senators MIKULSKI and BOND for their This bill provides for that. I close by or the USA Act. guidance in moving this legislation saying there may be small things in We all witnessed a great national through the process. Finally, I thank this bill that people don’t like. I am tragedy 3 months ago. While the deaths all the cosponsors, who include our sure there are some things in this bill and damage occurred in New York, Senators from New York and Virginia. that some people would not support. Washington, and in the fields of Penn- I am very pleased we have come to- But the big things are done right. It sylvania, a piece of all of us died that gether on our last day in a bipartisan would be inexcusable for us not to fully day. Many people came up to me in way to put forward this important liv- fund the war, while we have troops on Michigan after the attacks and asked: ing legacy to the victims of September the ground fighting for the very free- What can I do? I have given blood, I 11. dom that we have in this country and have donated to relief efforts, but I Mr. President, I now yield to my col- that we enjoy in this country. want to do more. league and friend who has been my As we are leaving Congress to go We all shared in the horror and now partner in the USA Act, and that is home for the holidays with our fami- everyone wants to share in the healing, Senator JON KYL. lies, we must show our appreciation to but how? Then a constituent of mine, The PRESIDING OFFICER. The Sen- those who are in the caves in Afghani- Bob Van Oosterhout, wrote me with an ator from Arizona. stan, in Uzbekistan and Pakistan, and idea: Why not have the Federal Gov- Mr. KYL. Mr. President, I thank the who are on missions in Saudi Arabia ernment devise a program that will en- Senator from Michigan for her leader- and Kuwait, who are ready to go at the courage communities throughout the ship in this effort. It has been a pleas- call of our country, if need be. We want Nation to create something that will ure to work with her on this legisla- to remember them. I think the most honor the memory of one of the vic- tion. It demonstrates a couple of important way we can say thank you tims lost in the attack, one by one by things: First, that all Americans care to those people is to fully fund their one. Together these local memorials to about the victims of the tragedy of training, their equipment, and the sup- honor individuals would dot our Nation September 11. Second, that the U.S. port they deserve as they are going for- and collectively honor all of those who Government can be a facilitator but ward in the name of freedom and rep- were lost in the attacks. What could be does not have to be the financier of resenting our country in the best pos- simpler or more moving? good works on behalf of the people of sible way. From that idea came the Unity in the country. I thank Senator INOUYE for being the the Spirit of America Act. Here is how At the conclusion of my remarks, I great leader that he is and Senator it works: will ask to print in the RECORD a letter

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00062 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S13835 from Robert K. Goodwin who is the Mr. DOMENICI. Mr. President, I ask sions for small businesses, the House- president of the Points of Light Foun- the distinguished Senator from Michi- passed bill provides nearly $60 billion dation. gan if I may be a sponsor of the amend- in tax relief to encourage growth in The president of the Points of Light ment. It is a very exciting amendment this weakened economy. Foundation points out that there are that we should be considering today. Further, addressing many of the con- no Federal funds used in this project Ms. STABENOW. It will be my honor, cerns raised on the other side of the but, rather, that money has been raised Mr. President, to add the distinguished aisle, the House-passed bill is a signifi- by people from around the country to Senator’s name. cant improvement over an earlier bill support these projects that literally The PRESIDING OFFICER. The Sen- in the area of providing needed help to will exist in every corner of this great ator from Hawaii. the unemployed and dislocated work- country. Each one of these projects Mr. INOUYE. Mr. President, pursuant ers. will be named for one of the victims of to the agreement, will the Chair recog- The House-passed bill provides sig- the September 11 tragedy. nize the Senator from Arizona? nificant support for those who for rea- What the Points of Light Foundation The PRESIDING OFFICER. The Sen- sons they do not control, find them- will do is help coordinate so there is a ator from Arizona is recognized. selves without employment this holi- common listing of all the different Mr. MCCAIN. Mr. President, I do not day season—all totaled nearly $32 bil- projects, in which part of the country yet seek recognition. lion would be provided in the form of they are located, and coordinating with The PRESIDING OFFICER. The Sen- direct payments to low-income work- the names of the victims. This is a ator from New Mexico. ers, extended unemployment benefits good project for the American people Mr. DOMENICI. Mr. President, since and health insurance assistance. to demonstrate their support for the no one is seeking time, I ask unani- The House-passed bill provides cash country, to do good works at the same mous consent that the Senator from payments for those who filed a tax re- time, and to memorialize the victims New Mexico be allowed to speak for 5 turn in 2000 but did not receive a rebate of the tragedy of September 11. minutes on the economic stimulus check earlier this year. These pay- I compliment the cosponsor of the package. ments will be $300 for individuals and legislation and the chairman and rank- The PRESIDING OFFICER. Is there $600 for married couples. ing member of the committee for in- objection? The House-passed bill provides 13 cluding this legislation in the Defense Mr. REID. What is the pending busi- weeks of extended unemployment in- appropriations bill. I appreciate our ness? What is the request? surance going back to those displaced colleagues’ support for this important The PRESIDING OFFICER. The Sen- from work from the beginning of this project. ator from New Mexico has asked to recession last March. Mr. President, I ask unanimous con- speak for up to 5 minutes on the eco- And including $8 billion in National sent that the letter from the president nomic stimulus package. Emergency Grants and Emergency of the Points of Light Foundation be Mr. REID. I reserve the right to ob- Medicaid funding to the states, over $21 printed in the RECORD. ject and ask the Senator to amend his billion would be assist individuals and There being no objection, the letter request so that the Senator from Geor- was ordered to be printed in the families with their health care costs gia, Mr. MILLER, and the Senator from immediately. RECORD, as follows: Nebraska, Mr. NELSON, have 5 minutes The House-passed bill is not perfect. POINTS OF LIGHT FOUNDATION, to speak on the economic stimulus But it is a major improvement over an Washington, DC, December 20, 2001. package. earlier version, largely because of the Hon. JON KYL, U.S. Senate, The PRESIDING OFFICER. Is there input of a group of Senators know as Washington, DC. objection? the Centrists here and because of Presi- DEAR SENATOR KYL: The Points of Light Mr. DOMENICI. How much time? dent Bush’s willingness to work with Foundation would like to take this oppor- Mr. REID. Two Senators, 5 minutes them in crafting this package. tunity to sincerely thank you for your sup- each: Senators NELSON and MILLER. I hope that we do not let ‘‘one man port and leadership of the Unity in the Spirit Mr. DOMENICI. I have no objection. rule’’ prevent us from even having a of America (USA). We were informed last The PRESIDING OFFICER. Without vote on this bill. evening that it will indeed be a part of the objection, it is so ordered. FY 2002 Defense Appropriations Bill. We are We need to pass something. But if we excited and humbled by this opportunity to ECONOMIC STIMULUS PACKAGE don’t assure you I will be the first to be create living memorials through service and Mr. DOMENICI. Mr. President, I rise back here in January asking that we volunteering, to those who perished as a re- to express my sincere disappointment consider the ‘‘payroll tax holiday’’ pro- sult of the September 11th terrorist attacks. with our seeming inability to consider posal. Please also let me extend my gratitude to a stimulus package; that is, a job-cre- I will take the remaining few min- your Legislative Director, Tom Alexander. ating piece of legislation, for our peo- utes and talk to my fellow Senators. His hard work in securing the necessary sup- Whatever the case and whoever could port was particularly appreciated as the bill ple. Millions of Americans have lost made its way through several conference their jobs over the last year. My fellow not reach accord, I believe we have to committees. His continued accessibility and New Mexicans, as do all Americans, tell our fellow Americans we did not do hands-on approach were invaluable. want and deserve action on this slow- them right in the waning days of this As the USA Act stipulates, no federal funds ing economy. session. While Christmas is upon us will be utilized in carrying out its provi- Let me be very clear. While some and good will is everywhere, it is quite sions. We are extremely pleased to inform would like a different stimulus pack- obvious the House and Senate, even you that we have secured significant private age than the one the House passed in with the President nudging and partici- and corporate donations to fulfill this most worthy project. In fact, The Walt Disney the early morning hours today, there pating, did not and will not produce a Company has made a substantial commit- are alternatives that were considered stimulus package that will get Amer- ment, paving the way for countless commu- in this first session. ica going again. nity-based memorial service projects, as well The House-passed bill will provide I wish we would have considered as an expansive national media campaign. needed tax relief to millions of working something in the Senate. I believe We look forward to continuing to work close- Americans. It will provide tax relief to there was time for us to consider ly with yourself and Senator Stabenow in those individuals who make more than amendments and even vote on a stim- cultivating this important initiative. In closing, please accept our gratitude and $28,000 and those who file joint returns ulus package. I think that could have best wishes for a safe, happy and healthy making more than $46,000. been worked out, and we could have holiday season. These are not rich people. These are passed something. I regret we have not. Your very truly, hard-working Americans. I say to the leadership in the Senate, ROBERT K. GOODWIN Along with provisions to encourage they could have done better. President & CEO. business investment with 30 percent de- While I have great respect and, in The PRESIDING OFFICER. The preciation and extending businesses some cases, admiration for our leader- Chair recognizes the Senator from New net operating losses carry back for two ship, I believe in this case one-man rule Mexico. years, and increasing expensing provi- prevailed, the Democratic majority

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00063 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S13836 CONGRESSIONAL RECORD — SENATE December 20, 2001 leader prevailed. He has what I would been concerned about and we all have what point we will be able to see the call a one-man rule because he can had comments about, continue to have economy turn around and be stimu- keep us from debating and considering thoughts about, and will continue to lated so it can be a robust economy, the House-passed measure. He can do have them into the future. I speak of one of the things we must in fact be that all by himself. That is a very big the stimulus package. concerned about is anything that tips undertaking by any one Senator, to say It is unfortunate we missed the op- the scales against the economy we we are not going to consider a stimulus portunity to be able to conclude a have today that can make it worse. In package this year in this Senate. That package of the type the centrists put fact, failure to take action can make it is one-man rule. That is a very big ex- together based on what was supported worse by not taking the appropriate ercise of power. by so many different individuals and action to undergird and support it. While the Democratic majority lead- groups. Unfortunately, the blame has If we are unable to come together er has a very difficult job in the waning already begun. So we are in a position and make sure insurance continues to moments because of different ideas and where we are talking about would be available, as well as affordable, but different proposals and obviously some have, could have, should have. We will certainly available to the public, if we politics, I think we should have done have an opportunity as time goes by fail to take that opportunity, then we better and he should have done better. over this holiday break to continue to might expect construction will be im- I close by saying I proposed, along talk and continue to look for solutions. peded, if not stopped, and that we may with about 10 Senators, an idea for a In January, something must in fact in fact see housing starts and other holiday from the Social Security taxes be done so we can move forward to pro- building starts stopped. tect the jobs of those who currently imposed on both employee and em- Unemployment can be affected. We have them, help those individuals who ployer, to do that for 1 month. Nobody could end up with more people unem- have lost them, and help create new suggested to me that is not a very good ployed, and the economic downturn jobs. This is about three things: Jobs, stimulus, to put before the American could be accelerated. I say these things jobs, jobs. And it is about the people not to provide a scare tactic but simply people a month that is picked in the who support them. near future to put $42 billion into the to impress as to how important it is we TERRORISM INSURANCE hands of every working man and solve this problem of availability of Mr. NELSON of Nebraska. In addi- terrorism insurance in the near term woman and every employer across this tion to being concerned about the fu- land in a rather instant payment to so we can work for a longer term solu- ture of the stimulus package, there is tion. them, or nonpayment to the Govern- an aspect of stimulus that is involved ment, of Social Security withholding. What has been offered to date is, in in another proposal that hopefully will fact, a short-term solution, a backup, a I believe if we start over with good be brought up today, and that is the will, and in a nonpartisan way, when compromise to work in the immediate terrorism insurance issue. It is not term, the short term, with broad-based we return because I do not believe the about insurers, it is about insureds. It economy will improve and we will be support. I hope we will take this up and is about the ability to be able to insure move forward. back at this—I urge we consider it at a one’s property, one’s house, one’s The PRESIDING OFFICER (Ms. high enough level to let the country home, one’s apartment, one’s auto- CANTWELL). The Senator from Georgia. focus on this idea. mobile. If one is a business owner, it is Mr. MILLER. Madam President, I, There is a lot of talk about the nega- about insuring their storefront or their too, will have a few remarks on the tive aspects of it, and most of them are business. It is about having workers economic stimulus bill. I think a deci- untrue. If we have a chance to get this compensation insurance and liability sion not to have a straight up-or-down issue before a committee, or debate it insurance. It is about having insurance vote on it and let the majority of this in the Senate, we would have a great for the protection one needs. Senate prevail, regardless of the make- starting point to which we could add There is a very important timeframe up of the majority, is a mistake. I the social welfare aspects of the unem- we must in fact look at, and that is know it is a loss for the country and ployment benefits, of some health care January 1 of this coming year. I am the folks who need our help and need it coverage, and all the other issues we hopeful we will be able to settle today immediately. are talking about. We would have as a on a bill and be able to pass something Why do we always have to act as if basis a single powerful issue that would and send it on for reconciliation in con- we are in a football game where one be building jobs and causing America ference, so we can match or in some side, one team, has to win and the to take a look and say we know how to way make it close enough to the House other team has to lose? Why can’t we do something very positive. version that a reconciliation of the have both parties the winners, along So I do not give up. If we are doing conference committee is possible, be- with the American people? nothing, I assume this idea will come cause if we fail to do that, there is a Myself, when it gets down to the back and I assume, when we start possibility, and perhaps even a strong block, I am kind of a half-a-loaf man. thinking about it and analyze it well, likelihood, that on January 1 of this Whether it is 75 percent, 65 percent, or it will be high on the agenda. coming year 70 percent of the reinsur- 50 percent, when you get right down to I say to all of my friends in the Sen- ance that is currently available to di- it, that is always better than zero per- ate, they worked very hard. I congratu- rect writers will be affected. It may not cent. You can eat half a loaf. Having no late them. They worked either as a provide for terrorism in the future. loaf at all may make a political point, centrist member of the committee or I know for many people it seems sort but in the end somebody goes hungry. member of the leadership, put in a lot of esoteric. It seems sort of complex This is not the House bill. I could of time, a lot of effort. I am hopeful and perhaps eyes-glazed-over thinking never have supported that bill. I would even in the last moment it will work about insurance and reinsurance and never have voted for it. This com- and somehow it will come out of the whether there will be protection for promise package does not include ev- forest and be sitting there for us to terrorism or not, but it is a very real erything either side wanted. Instead, it look at. issue, a very real and present concern represents a reasonable compromise. If not, then I urge when we come we must in fact have. It is not about Some say speeding up the reduction back and consider how we stimulate, simply insuring skyscrapers. It is of the tax rates from 27 percent to 25 that we put this holiday back on the about insuring small businesses. It is percent is just helping the wealthy. table with all the other things we have about apartment buildings, storefronts, Nothing could be further from the been considering. and people’s own personal residences, truth. The folks who benefit from this I yield the floor. as well as their automobiles. It is are folks who earn as little as $27,000 a The PRESIDING OFFICER. The Sen- about whether or not money will be year, going up to $67,000 a year. For ator from Nebraska. available for lending or whether or not married couples, this rate reduction Mr. NELSON of Nebraska. Mr. Presi- it will continue to be available for con- would help those who earn between dent, I appreciate the opportunity to struction. $47,000 to $120,000 a year. Those are not address the Chamber today and speak If we are concerned, as I think we the wealthy or the rich. Those are mid- on a very important issue we have all are, about a worsening economy and at dle-income Americans. Many are our

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00064 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S13837 friends and organized labor. This bill tion of the Appropriations Com- enriching some already wealthy also includes a $300 rebate for those mittee—and that is to not appropriate businessessmen. who did not get anything from the ear- funds for programs that are not au- Is this a great country or what? A million- lier tax cut. thorized—just in the Commerce Com- aire developer wants a road built, the federal On the health insurance area, we rec- government supplies the cash to construct mittee alone, we have for the 2002 Win- it. A billionaire ski-resort owner covets a ognize the need to help the unemployed ter Olympics, $93.3 million; port secu- choice piece of public land. No problem. The by providing health insurance for rity grants, $90 million; airport and federal government arranges for him to have them. This is a very significant change. airways trust fund, payment to air car- it. Some millionaire businessmen stand to This is a dramatic change and should riers, $50 million; DOT Office of the In- profit nicely if the local highway network is be welcomed by both Republicans and spector General, $1.3 million; FAA op- vastly improved. Of course. The federal gov- Democrats alike. erations, taken from the aviation trust ernment provides the money. Some argue that the best way to give How can you get yours, you ask? Easy. fund, without authorization, $200 mil- Just help your hometown land the Olympics. laid-off workers access to health care lion. is to provide a 75-percent subsidy for Then, when no one’s looking persuade the Just as the appropriators are now federal government to pay for a good chunk COBRA premiums, as well as access to taking away highway money appro- of the Games, including virtually any project State Medicaid Programs. Others dis- priated under a formula passed by the to which the magic word Olympics can be at- agreed and preferred a broader tax full Senate and House and violating tached. credit for health insurance premiums. TEA–21, we are now taking away from Total federal handouts. The $1.5 billion in This package falls somewhere in be- the aviation trust fund for pet projects taxpayer dollars that Congress is pouring 1 tween, providing a 60-percent $200 million worth, to pet projects of into Utah is 1 ⁄2 times the amount spent by advanceable, refundable tax credit for lawmakers to support all seven Olympic the appropriators. Games held in the U.S. since 1904—combined. all health insurance. We have FAA facilities and equip- It is not a whole loaf for anyone, but In inflation-adjusted dollars. ment, $108.5 million; Federal Highway Enrichment of private interests. For the it represents a practical solution, and Administration, proposed operations, first time, private enterprises—primarily ski it is the best way to do what we all $10 million was requested by the ad- resorts and real estate developments—stand want; that is, to help the workers and ministration, $100 million; capital to derive significant long-term benefits from help them before it is too late. grants to the National Railroad Pas- Games-driven congressional giveaways. The package also includes help for Most government entities tapped for cash. senger Corporation, $100 million; Fed- State governments, something our With all that skill, grace and precision of a eral Transit Administration capital in- Governors and legislators desperately hockey team on a power play, Utah’s five- vestment gains, $100 million; restora- need right now. It provides almost $5 member congressional delegation has used tion of broadcasting facilities, $8.25 billion in payments to State Medicaid the Olympics to drain money from an un- million; National Institutes of Stand- precedented number of federal departments, Programs. This does not represent ev- ards and Technology, $30 million; Fed- agencies and offices—some three dozen in erything States or many of us wanted. eral Trade Commission, $20 million; all, from the Office of National Drug Control I was hoping to get a fix for the upper FAA grants and aid for airports, $175 to the Agriculture Department. payment limit but, again, it is half a Most U.S. tax dollars per athlete. Federal million; Woodrow Wilson Bridge loaf. spending for the Salt Lake City City Games project, $29 million. As it is, we have no loaf. We have no will average $625,000 for each of the 2,400 ath- Why did they have to do that? Be- loaf at all. We do not even have a slice. letes who will compete. (Not a penny of it cause they took the money out of the Who was it who said, Let them eat will go to the athletes.) That’s a 996% in- highway funds in the Transportation crease from the $57,000 average for the 1996 cake? Olympics. It’s a staggering 5,582% jump from I yield the floor. appropriations bill, thereby shorting the Woodrow Wilson Bridge, so they the $11,000 average for the 1984 Summer The PRESIDING OFFICER (Mr. MIL- Games in Los Angeles. LER). The Senator from Arizona. had to add another $30 million to make up for the shortfall. Unfortunately, Parking lots are costing you $30 million. DEFENSE APPROPRIATIONS Some $12 million of that is paying for two 80- Mr. MCCAIN. Madam President, I that was about $500 million that they acre fields to be graded and paved for use as rise, once again, to address the issue of took, and every other State in Amer- two temporary lots, then returned to mead- wasteful spending in appropriations ica—by the way, not represented by a ows after the flame is extinguished. measures; in this case, the bill funding member of the Appropriations Com- Housing for the media and new sewers are each costing you $2 million. the Department of Defense for fiscal mittee—had highway funds taken away from them. Repaved highways, new roads and bridges, year 2002. enlarged interchanges and an electronic In provisions too numerous to men- Provision relating to Alaska in the Transportation Equity Act for the 21st highway-information system are costing you tion in detail, this bill, time and again, $500 million. chooses to fund porkbarrel projects century—it will be interesting to see Buses, many brought in from others states, with little, if any, relationship to na- the impact that has on the rest of to carry spectators to venues are costing you tional defense at a time of scarce re- America. We have the U.S. 61 Woodville $25 million. sources, budget deficits, and under- widening project in Mississippi, Fencing and other security measures at $300,000; Interstate Maintenance Pro- the Veterans Administration Medical Center funded urgent defense priorities. in northeast Salt Lake City—to protect pa- The Web site of the Senate Com- gram for the city of Trenton, $4 mil- lion; international sports competition, tients and staff from the Olympia hordes— mittee on Appropriations, in its open- are costing you $3 million. ing sentence, states the following: $15.8, million, emergency planning as- A light-rail transit system that will ferry Authorization laws have two basic pur- sistance for 2002 Winter Olympics. Olympic visitors around Salt Lake City is poses. They establish, continue, or modify I have to talk for a minute before I costing you $326 million. Federal programs, and they are a pre- get into the major issue, and that is Improvement at Salt Lake City-area air- requisite under House and Senate rules . . . the Boeing lease, and discuss the Olym- ports are costing you $16 million. for the Congress to appropriate budget au- pics issue. It is now up to well over $1.5 The list goes on and on: thority for programs. billion that the taxpayers have paid. Recycling and composting are costing you I will not go through all of the unau- I refer my colleagues to an article $1 million, and public education programs thorized programs that are in this leg- that was in Sports Illustrated maga- for air, water and waste management are islation. I only mention those that re- zine, December 10, 2001. The title of it costing you another $1 million. late to the committee of which I am is, ‘‘Snow Job.’’ A weather-forecasting system being set up proud to serve and be the ranking I will not read the whole article. It is for SLOC is costing you $1 million. The member, formally the chairman, the very instructive to my colleagues in money is going to the University of Utah to Commerce Committee. I and Senator particular and to our citizens about enable its Meterorology Department to pro- vide data that will supplement forecasts pro- HOLLINGS and members of my com- what has happened in the Utah Olym- vided to SLOC by the National Weather mittee take our responsibilities very pics. The headline is ‘‘Snow Job.’’ Service. seriously. Thanks to Utah politicians and the 2002 New trees planted in Salt Lake City and Now we have seen, despite what ap- Olympics, a blizzard of federal money—a other communities ‘‘impacted’’, as the fund- parently is the mission or the obliga- stunning $1.5 billion—has fallen on the state, ing legislation put it, by the Olympics are

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00065 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S13838 CONGRESSIONAL RECORD — SENATE December 20, 2001 costing you $500,000. Said Utah Senator Rob- The Investor’s Business Daily, on De- not actually among the Air Force’s top ert Bennett, who arranged for the money. cember 18, 2001, had this to say in an 60 priorities—it was not among their ‘‘We do the Olympics because it gets us to- article titled At the Trough: Welfare top 60 priorities—nor do new tankers gether doing thinks like planting trees.’’ Checks to Big Business Make No Sense: appear in the 6-year defense procure- ‘‘We do the Olympics because it gets Among the least justified outlays is cor- ment plan for the Service! us together, doing things like planting porate welfare. Budget analyst Stephen That’s right, when the Air Force told trees.’’ Slivinski estimates that business subsidies Congress in clear terms what its top Wow. will run $87 billion this year, up a third since priorities were tankers and medical lift I want to repeat, I am all for what- 1997, Although President Bush proposed $12 ever expenditure for security for the billion in cuts to corporate welfare this year, capability aircraft weren’t included as Salt Lake City Olympics. A good part Congress has proved resistant. Indeed, many critical programs. In fact, within its of this $1.5 billion—and there is more post-September 11 bailouts have gone to big top 30 programs, the Air Force has in this appropriations bill—has nothing business. Boeing is one of the biggest bene- asked for several essential items that ficiaries. Representative Norm Dicks, Demo- would directly support our current war to do with security. It has to do with crat from Washington, is pushing a substan- roadbuilding. It has to do with land effort: wartime munitions, jet fighter tial increase in research and development engine replacement parts, combat sup- swaps, worthless land for valuable support for Boeing and other defense con- land. It has to do with wealthy devel- tractors, the purchase of several retrofitted port vehicles, bomber and fighter up- opers; it has to do with the enrichment Boeing 767s and the leasing of as many as 100 grades and self protection equipment, of billionaires; and it really is quite a 767s for purposes ranging from surveillance and combat search and rescue heli- story. I hope every American will read to refueling. Boeing has been hurt by the copters for downed pilots. that story that is in Sports Illustrated storm that hit airlines, since many compa- Let me say that again, within its top nies have slashed orders. Yet China recently 30 programs, the Air Force has asked dated December 10 entitled ‘‘Snow agreed to buy 30 of the company’s planes, Job’’—aptly entitled ‘‘Snow Job.’’ and Boeing’s problems predate the Sep- for several essential items that would As I pointed out before, our nation is tember 11 attack. It is one thing to com- directly support our current war effort: at war, a war that has united Ameri- pensate the airlines for forcibly shutting wartime munitions, jet fighter engine cans behind a common goal—to find them down; it is quite another to toss money replacement parts, combat support ve- the enemies who terrorized the United at big companies caught in a down demand hicles, bomber and fighter upgrades States on September 11 and bring them cycle. Boeing, along with many other major and self protection equipment, and to justice. In pursuit of this goal, our exporters, enjoys its own federal lending fa- combat search and rescue helicopters service men and women are serving cility, the Export-Import Bank. ExIm uses for downed pilots. cheap loans, loan guarantees and loan insur- long hours, under extremely difficult ance to subsidize purchases of U.S. products. This leasing program also will re- conditions, far away from their fami- The bulk of the money goes to big business quire $1.2 billion in military construc- lies. Many other Americans also have that sell airplanes, machinery, nuclear tion funding to build new hangars, been affected by this war and its eco- power plants and the like. Last year alone, since existing hangars are too small for nomic impact, whether they have lost Boeing benefitted form $3.3 billion in credit the new 767 aircraft. The taxpayers their jobs, their homes, or have had to subsidies. While corporate America gets the also will be on the hook for another $30 profits, taxpayers get the losses. . . . drastically cut expenses this holiday million per aircraft on the front end to season. The weapons we have given As I mentioned last week when the convert these aircraft from commercial them, for all their impressive effects, Senate version of the Defense Appro- configurations to military; and at the are, in many cases, neither in quantity priations bill was being debated—and end of the lease, the taxpayers will nor quality, the best that our govern- now carried through the Conference have to foot the bill for $30 million ment can provide. Committee—is a sweet deal for the more, to convert the aircraft back— For instance, stockpiles of the preci- Boeing Company that I’m sure is the pushing the total cost of the Boeing sion guided munitions that we have re- envy of corporate lobbyists from one sweetheart deal to $30 billion over the lied on so heavily to bring air power to end of K Street to the other. Attached ten-year lease. Mr. President, that is bear so effectively on difficult, often is a legislative provision to the Fiscal waste that borders on gross negligence. Year 2002 Department of Defense Ap- moving targets, with the least collat- I wrote a letter to the Director of eral damage possible, are dangerously propriations bill that would require the OMB. Here is the answer I received: depleted after only 10 weeks of war in Air force to lease one hundred 767 air- Afghanistan. This is just one area of craft for use as tankers for $26 million DEAR SENATOR MCCAIN: critical importance to our success in apiece each year for the next 10 years. Thank you for your inquiry regarding the this war that underscores just how Moreover, in Conference Committee costs associated with the conversion of 767 aircraft tankers. According to the Air Force, carefully we should be allocating the appropriators added four 737 air- the total cost for a program to lease 100 scarce resources to our national de- craft for executive travel—mostly ben- tankers is approximately $26 billion. fense. efitting Members of Congress. We have I ask unanimous consent that the Yet, despite the realities of war, and been told that these aircraft will be as- letter from Mr. Mitchell Daniels, Di- the responsibilities they impose on signed to the 89th Airlift Wing at An- rector of OMB, be printed in the Congress as much the President, the drews Air Force Base. Senate Appropriations Committee has Since the 10-year leases have yet to RECORD. not seen fit to change in any degree its be signed, the cost of the planes cannot There being no objection, the letter usual blatant use of defense dollars for be calculated, but it costs roughly $85 was ordered to be printed in the projects that may or may not serve million to buy one 737, and a lease RECORD, as follows: some worthy purpose, but that cer- costs significantly more over the long EXECUTIVE OFFICE OF THE PRESI- tainly impair our national defense by term. DENT, OFFICE OF MANAGEMENT depriving legitimate defense needs of The cost to taxpayers? AND BUDGET, Washington, DC, December 18, 2001. adequate funding. $2.6 billion per year for the aircraft The Hon. JOHN MCCAIN, Even in the middle of a war, a war of plus $1.2 billion in military construc- U.S. Senate, monumental consequences and with no tion funds to modify KC–135 hangars to Washington, DC. end in sight, the Appropriations Com- accommodate their larger replace- DEAR SENATOR MCCAIN: Thank you for mittee, Mr. President, still is intent on ments, with a total price tag of more your inquiry regarding the costs associated using the Department of Defense as an than $30 billion over 10 years when the with the conversion of 767 aircraft to tank- agency for dispensing corporate wel- costs of the 737 leases are also included. ers. According to the Air Force, the total fare. It is a terrible shame that in a This leasing plan is five times more ex- cost for a program to lease 100 tankers is ap- time of maximum emergency, the U.S. pensive I repeat, five times more ex- proximately $26 billion. I have attached a Senate would persist in spending pensive to the taxpayer than an out- summary of assumptions and costs they have identified. Please let me know if you require money requested and authorized only right purchase, and it represents 30 any additional information. for our Armed Forces to satisfy the percent of the Air Force’s annual cost Sincerely, needs or the desires of interests that of its top 60 priorities. But the most MITCHELL E. DANIELS, JR., are unrelated to defense needs. amazing fact is that this program is Director.

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00066 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S13839 Mr. MCCAIN. Mr. President, I want Director, Congres- by requiring that most of the entire contract to read a letter that I received re- sional Account- cost be paid in the first year. To get around cently. This letter is from the Ameri- ability Project. that, Boeing proposed having the Air Force cans for Tax Reform, Council for Citi- RONNIE DUGGER, simply lease the aircraft without a purchase Alliance for Democracy option. But that would not cover the cost of zens Against Government Waste, Con- adapting them for refueling and surveillance, gressional Accountability Project, (organization listed for identification only). or of ultimately buying them, as the Air Ronnie Dugger, Ralph Nader, National Force is expected to do. Taxpayers Union, Project on Govern- PETE SEPP, The company recruited the Congressional Vice President for delegations from Washington and Missouri— ment Oversight, Public Citizen, and Communications, Taxpayers for Common Sense. the two states where it assembles most of its National Taxpayers aircraft—to support the plan. And in the All of these organizations are on the Union. right and the left of the political spec- Senate, it found a powerful ally in Ted Ste- DANIELLE BRIAN, vens of Alaska, the ranking Republican on trum. Executive Director, the Appropriations Committee, who is a fan They wrote the following letter: Project on Govern- of lease-purchase deals for the military. DECEMBER 19, 2001. ment Oversight. Boeing lobbyists with Congressional expe- DEAR SENATOR: Even as veteran observers JOAN CLAYBROOK, rience—including Mr. de Leon, who also was of the Congressional appropriations process, President, Public Cit- a staff director for the House Armed Services we are shocked, and outraged, by the provi- izen. Committee, and Denny Miller, a former chief sion in the Defense Appropriations bill that of staff to the late Senator Henry M. Jack- JOE THEISSEN, would have the Air Force lease Boeing 767s son of Washington—help negotiate the lease Executive Director, at a price dramatically higher than the cost language. Taxpayers for Com- of direct purchase. We are writing to urge mon Sense. Mr. President, I ask unanimous con- you to take to the floor to speak and vote sent that this article be printed in the against this specific siphoning of taxpayer Mr. President, I guess the obvious money to the Boeing company. question that would then be asked is, RECORD. Leave aside the serious questions about How did this happen? On its face it is There being no objection, the article whether the Air Force wants or needs the incredible. was ordered to be printed in the 767s, and simply consider the economics of Let me try to illuminate my col- RECORD, as follows: this sugar-coated deal: Staggered by the loss of the largest mili- Under the Boeing lease provision, the Air leagues on an article of December 12 in the New York Times entitled ‘‘Boeing’s tary contract in history and the collapse of Force will lease 100 Boeing 767s for use as the commercial airline market, Boeing has tankers, at a pricetag of $20 million per War Footing; Lobbyists Are Its Army, sharply intensified its efforts in Congress plane per year, over a 10-year period. This $20 Washington Its Battlefield.’’ and the Pentagon to win an array of other billion expenditure is far higher than the I will not read the entire article. big-ticket military contracts. cost of direct purchase. The government will It says: Mobilizing an armada of well-connected accrue extra expenses because it will be obli- Staggered by the loss of the largest mili- lobbyists, sympathetic lawmakers and Air gated not only to convert the commercial tary contract in history and the collapse of Force generals, the company argues that by aircraft to military configurations; when the the commercial airline market, Boeing has financing its contracts Congress would re- 10-year lease is over, it will be required to sharply intensified its efforts in Congress duce the need for thousands of layoffs and convert them back to commercial format, at and the Pentagon to win an array of other help keep Boeing, the second-largest mili- an estimated cost of $30 million apiece. Sen- big-ticket military contracts. tary contractor, healthy in a time of war. ator John McCain says the cost of the lease Mobilizing an armada of well-connected ‘‘You’ve got the nation’s leading exporter, plan is five times higher than an outright lobbyists, sympathetic lawmakers and Air and one of its leading military contractors, purchase would be. Senator Phil Gramm Force generals, the company argues that by who has been hit hard,’’ said Representative says, ‘‘I do not think, in the 22 years I have financing its contracts Congress would re- Norm Dicks, a Washington State Democrat been here, I have ever seen anything to equal duce the need for thousands of layoffs and who has led the charge for Boeing on Capitol this.’’ help keep Boeing, the second-largest mili- Hill. ‘‘We can really help them.’’ ‘‘I don’t think, in the 22 years I have tary contractor, healthy in a time of war: The push underscores a broader trend for been here, I have ever seen anything to It talks about losing the joint strike Boeing, company officials and analysts say. The company, with most of its production in equal this.’’ fighter to Lockheed Martin. The letter goes on to say: the Seattle area, has suffered a sharp down- Those events sent Boeing reeling. But like turn in commercial aircraft business, which There is no conceivable rationale for such battle-tested generals on the retreat, Boeing last year generated two-thirds of its $51.3 bil- a waste of taxpayer resources. If some in executives swiftly moved to recover their lion in sales. Boeing is expected to announce Congress believe Boeing needs to be sub- losses in a time-tested Washington way: woo- this week that production of its 717 commer- sidized, then they should propose direct sub- ing Congress and the Pentagon to support cial airliners will be cut by half, to as little sidies to the company, and let Congress fully other contracts. as one plane a month from two, company ex- debate and vote on the issue before the Few companies can rival Boeing influence ecutives said. As recently as a month ago, American people, following comprehensive in the capital. Its Washington office, headed analysis predicted that the company would public hearings on the proposal. by Rudy F. de Leon, the deputy secretary of end all 717 production, in part because the This is not a partisan issue. It is a basic defense in the final year of the Clinton ad- Sept. 11 attacks have slowed demand for test of whether Congress views itself as fun- ministration, employs 34 in-house and more commercial jets. damentally accountable to the public inter- than 50 outside lobbyists. As a result, Boeing is looking more than est, both procedurally and substantively. One of the Boeing lobbyists’ first moves ever to its military and space divisions to There will obviously be a Defense Appro- after Sept. 11 was to prod the Air Force to bolster sagging revenue. priations bill passed for the coming fiscal reconsider the 767 lease deal, which had Last week, it won a big lobbying battle year. But it must not be one that includes stalled months before. Though the Air Force when the Senate approved a sharply con- such a gross exhibition of corporate welfare. has said it plans to replace its 40-year-old tested plan for Boeing to lease to the Air We urge you to speak and vote against the KC–135 tankers in the next decade or two, it Force 100 new 767 wide-body jets for use as bill; and to force consideration of a revised has preferred to spend its money on elite refueling tankers and reconnaissance planes. bill, stripped of this grotesquery. fighter jets like the F–22. The proposal next goes before a House-Sen- Sincerely, But the war in Afghanistan has kept doz- ate conference committee. RALPH NADER, ens of KC–135’s in the air almost constantly, At an estimated cost of more than $20 bil- GROVER NORQUIST, putting pressure on the Air Force to accel- lion over 10 years, that plan has been at- President, Americans for Tax Reform. erate its replacement program. James tacked as a costly corporate bailout by crit- I have never seen Ralph Nader and Roche, the secretary of the Air Force, and ics led by Senator John McCain, a Repub- Grover Norquist on the same letter in Gen. John P. Jumper, the Air Force chief of lican from Arizona. But supporters say that all the years I have been in this town. staff, signed into the lease-purchase idea be- it would not only significantly offset The letter is also signed by the fol- cause it would spread the cost out into the Boeing’s loss of orders from ailing commer- lowing: future, Pentagon documents show. cial airlines but also help the Pentagon by Boeing next had to break down resistance accelerating the replacement of aging midair THOMAS A. SCHATZ, to lease arrangements in Congress. Accord- refueling tankers and reconnaissance air- President, Council for ing to one internal Pentagon study, a lease- craft that both have been worn down by Citizens Against purchase deal for 100 767’s would cost 15 per- heavy use in the war in Afghanistan. Government Waste. cent more than simply buying the planes. ‘‘Near term, it’s a very nice financial salve GARY RUSKIN, Moreover, federal rules discourage such deals to an immediate wound,’’ said Howard Rubel,

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00067 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S13840 CONGRESSIONAL RECORD — SENATE December 20, 2001 a military industry analysis at Goldman by requiring that most of the entire contract jamming planes with an electronic-warfare Sachs. cost be paid in the first year. To get around version of the F–18, a move that could help The 767 plan is just one of several major that, Boeing proposed having the Air Force keep Boeing’s St. Louis plant open longer. Pentagon programs that Boeing is prodding simply lease the aircraft without a purchase Unmanned aircraft are another focus of Congress to sustain, expand or accelerate. option. But that would not cover the cost of Boeing lobbying. Last month, Boeing orga- The company is the lead contractor on more adapting them for refueling and surveillance, nized a new division headed by a senior exec- than a dozen major contracts accounting for or of ultimately buying them, as the Air utive from its Strike Fighter program, Mike well over $10 billion in the 2002 Pentagon Force is expected to do. Heinz, to help it expand into a market the budget alone. Those include the F/A–18 fight- The company recruited the Congressional company estimates will top $1 billion a year. er jet for the Navy, the V–22 Osprey tilt- delegations from Washington and Missouri— Boeing is already building a prototype un- rotor aircraft for the Marine Corps, the AH– the two states where it assembles most of its manned fighter for the Air Force, a project 64 Apache Longbow helicopter for the Army aircraft—to support the plan. And in the that many industry officials say is Boeing’s and the airborne laser for the Pentagon’s Senate, it found a powerful ally in Ed Ste- to lose. At a recent meeting of industry ex- Ballistic Missile Defense Organization. vens of Alaska the ranking Republican on ecutives, Darleen A. Druyun, the principal In addition, Boeing has been trying for the Appropriations Committee, who is a fan deputy assistant secretary of the Air Force years to become the dominant player in an of lease-purchase deals for the military. for acquisition and management, spoke array of new businesses, including unpiloted Boeing lobbyists with Congressional expe- glowingly about the future of unmanned aer- aircraft, battlefield and cockpit communica- rience—including Mr. de Leon, who also was ial vehicles. tions, surveillance technology and precision- a staff director for the House Armed Services ‘‘I see a very bright future for Boeing when guided numitions. The war on terrorism has Committee, and Denny Miller, a former chief it comes to aviation,’’ she said, ‘‘particularly only underscored the Pentagon’s need for of staff to the late Senator Henry M. Jack- in the areas of UAV’s and in sales of C–17’s.’’ more of those systems, Boeing and its allies son of Washington—helped negotiate the Mr. MCCAIN. Mr. President, when the assert. lease language. ‘‘What we’re about to see was the reason With Senator Patty Murray, a Washington Department of Defense appropriations for the merger with McDonnell Douglas in Democrat, the Boeing president, Philip A. bill was on the floor, Senator GRAMM of the first place,’’ said Gerald E. Daniels, Condit, has repeatedly met with senior law- Texas, I, and others decided that we president of Boeing’s military aircraft and makers like Daniel Inouye, the chairman of would do what we could to oppose this missile systems division. ‘‘With the cyclical the Senate Appropriations subcommittee on being included in the legislation. nature of the commercial business, building the military, and the Senate majority lead- We were prepared to engage in ex- strong military and space units serves to er, Thomas Dashle. Last week, Mr. Condit tended debate on this and many of the tamp down those gigantic swings.’’ returned to discuss the deal with several other provisions of the Defense appro- In 1999, two years after the merger with leading skeptics in the House, including the priations bill. After conversations with McDonnell Douglas, Boeing delivered 620 speaker, J. Dennis Hastert, and Representa- commercial aircraft, for revenue of $38.5 bil- tive Jerry Lewis of California, the influen- Senator GRAMM and Senator STEVENS, I lion. By next year, analysts estimate, deliv- tial chairman of the House subcommittee on agreed to an amendment on my behalf eries are expected to tally only 367, with rev- defense appropriations. along with Senator GRAMM that would enue down to $26 billion. A spokesman for Mr. Lewis, Jim Specht, give the President the authority not to The collapse in the commercial market re- said the Congressman remained undecided on spend the money if we found other sulted, of course, from the suicide hijacking the lease deal, but added: ‘‘There is the con- more compelling needs for national de- attacks of Sept. 11. Air travel plummeted cern that because of the Joint Strike Fighter fense, which seems like a reasonable and airlines canceled dozens of jet orders, contract, something has to be done to make prompting Boeing to announce plans to lay sure we support all of our industrial base.’’ solution to the dilemma in which we off 30,00 workers over the next two years. All the work, however, did not win over found ourselves. Just when it seemed Boeing’s fortunes Senator McCain, who last week accused Boe- (Mr. CLELAND assumed the Chair.) could not be worse, in October the Pentagon ing of ‘‘playing victim, blaming its own job Mr. MCCAIN. I will admit to a cer- awarded a $200 billion contract for the Joint cuts, many of which occurred before Sept. 11, tain degree of naivety. I believed that Strike Fighter to Boeing’s larger rival, on the tragedy itself.’’ provision would be held in conference. Lockheed Martin. The stealthy jet is ex- Boeing seems to have won Congressional Obviously, I was incredibly naive. That pected to become the mainstay fighter for support for accelerating purchases of C–17’s, the Navy, Air Force and Marine Corps in the the all-purpose cargo planes it builds in Long provision, I am told, was the first to next two decades, raising doubts about Beach, Calif., at a former McDonnell Douglas go. Boeing’s future in the tactical fighter busi- plant. Last spring, Boeing formally asked So now we have a situation—even ness. that the Pentagon buy 60 more planes at a though the Air Force in its top 60 pri- Those events sent Boeing reeling. But like cost of about $150 million each. Without that orities did not request additional tank- battle-tested generals on the retreat, Boeing increase, the Long Beach production line is ers, but did have plans in the next 10 executives swiftly moved to recover their scheduled to close later this decade. years or so to purchase aircraft with losses in a time-tested Washington way: woo- Boeing has also tried to wiggle its way into refueling capability—we now have a ing Congress and the Pentagon to support the Strike Fighter deal. The company has other contracts. quietly hinted that it could urge Congress to provision in law, which I obviously will Few companies can rival Boeing’s influ- buy more unmanned aircraft or its F/A–18 to not be able to reverse, without com- ence in the capital. Its Washington office, take the place of Navy and Air Force petition. headed by Rudy F. de Leon, the deputy sec- versions of the Joint Strike Fighter if Lock- Maybe Airbus could have provided retary of defense in the final year of the heed did not agree to give it a substantial some tankers. Maybe some airlines Clinton administration, employs 34 in-house piece of the work. with excess aircraft could have pro- and more than 50 outside lobbyists. It has urged Senator Christopher S. Bond, vided some tankers. But no competi- One of the Boeing lobbyists’ first moves a Missouri Republican, to continue pro- tion is allowed. It directs that it be after Sept. 11 was to prod the Air Force to moting legislation requiring Lockheed to reconsider the 767 lease deal, which had split the Strike Fighter work with Boeing. 767s. stalled months before. Though the Air Force Senator Bond withdrew his bill for lack of Now, of course, to sweeten the pot, has said it plans to replace its 40-year-old support, but on Friday he won Senate funds we have four 737s which will go out to KC–135 tankers in the next decade or two, it for a study into whether the Pentagon Andrews Air Force Base and be part of has preferred to spend its money on elite should have two manufacturers of tactical the aircraft that are used for ferrying fighter jets like the F–22. fighter aircraft. VIPs and Members of Congress around But the war in Afghanistan has kept doz- ‘‘I want to make sure we maintain that the world. ens of KC–135’s in the air almost constantly, production line in St. Louis, because it’s in I think you could make an argument putting pressure on the Air Force to accel- the national interest,’’ Mr. Bond said in an erate its replacement program. James interview. that Boeing needs to be bailed out, Roche, the secretary of the Air Force, and Lockheed, however, notes that it already that they are in trouble. They are a Gen. John P. Jumper, the Air Force chief of has two major partners, the British military major manufacturing company. They staff, signed onto the lease-purchase idea be- contractor BAE Systems and Northrop lost out on a new fighter aircraft com- cause it would spread the cost out into the Grumman. ‘‘There is only so much work to petition. There may be some argument future, Pentagon documents show. go around,’’ said Charles Thomas Burbage, to that. I might even consider cutting Boeing next had to break down resistance director of the fighter project for Lockheed. them a check for some money. We cut to lease arrangements in Congress. Accord- Boeing, with the help of Senator Bond and ing to one internal Pentagon study, a lease- Representative Richard A. Gephardt, the checks for a lot of other interests purchase deal for 100 767’s would cost 15 per- House Democratic leader, who comes from around here. cent more than simply buying the planes. the St. Louis area, is also pushing the Navy But there was never a hearing in the Moreover, federal rules discourage such deals to replace its aging EA6–B Prowler radar- Armed Services Committee—never a

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00068 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S13841 hearing in the Armed Services Com- care of the special interests. We will I am not going to take too much mittee—of a $30 billion purchase here. take care of the big campaign contrib- longer, but I will just make a ref- It was never considered by the Armed utors. erence. In 1997—since the Senator from Services Committee—not once. Never I am sure Boeing will be extremely Hawaii is here—there was a proposal did it come up. No. No, Mr. President. generous at the next fundraisers that put in an appropriations bill to build Again, it was stuck in an appropria- both the Republican and Democrat two ships in Mississippi. And certain tions bill, stuck into an appropriations Parties have. They have already been waivers were made in those require- bill without a single hearing. Not even incredibly generous. And, by the way, ments. In return for that, those ships in the Appropriations Committee did they are very schizophrenic in their po- would operate from the State of Ha- they have a hearing on this. litical outlook because they give pret- waii. About $1 billion worth of tax- What I am saying is, this system has ty much the same amount of money to payers’ money was on the line. run amok. This system has run amok. both parties, which shows how ideo- I said, this is crazy. You can’t do We are now in the situation where any- logically driven they are. this. This is outrageous. Do you know one who is not on the Appropriations And we will get 767s. I am sure they what happened a few weeks ago? The Committee becomes irrelevant, par- are nice airplanes. But who is going to company went bankrupt. There are two ticularly at the end of the year. pay? Who is going to pay for it? The hulls sitting in the State of Mis- Where is the relevancy of the Com- average taxpayer, because the cost to sissippi. The taxpayers are already on merce Committee when $310 million in the taxpayer of this little backdoor, the hook for $300-some million, and it appropriations is added on a Defense backroom maneuver is billions of dol- will probably rise to $1 billion. appropriations bill? Where is the rel- lars more than it should have been. If that proposal had gone through the evancy when billions of dollars on a I remind you, the average lifespan of Commerce Committee, it never would Defense appropriations bill are put in a tanker is around 35 to 40 years. That have seen the light of day because, on that have nothing to do with defense? is the average lifespan because they are its face, it was crazy. To give a 30-year Where is the relevancy of the author- relatively simple airplanes. They are or 20-year, or whatever it is, exclu- izing committees when billions and bil- really flying gas stations. So they last sivity to a cruise line in return for lions and billions of dollars are added a long time. them being built with taxpayers’ dol- So what are we going to do? Pay 90 without a hearing, without consider- lars, there was no way it was going to percent of the cost of the airplane and, ation, and without authorization? succeed. And I said so at the time. after 10 years, pay to have it de-engi- I suggest that the Appropriations So now the taxpayers are on the hook neered as a tanker and give it back to Committee change their Web site, the for $1 billion. Boeing, at a minimum of one-third of one I quoted earlier, that says that We are talking about real money. the life of the tanker. With a straight What is going on here? It is because we only authorized appropriations will be face, how can we possibly do this? made. It says: are violating the process and the rules I had a lot of other concerns about for the way we should operate. Perhaps Authorization laws have two basic pur- the porkbarreling, but I want to say this Boeing deal would have gotten poses. They establish, continue, or modify this. One of two things is going to hap- some consideration in a very different federal programs, and they are a prerequisite pen around here in the Senate: Either under House and Senate rules . . . for the fashion. Probably what would have re- the Appropriations Committee controls Congress to appropriate budget authority for sulted is that we would have author- the entire agenda and does the things programs. ized the purchase of three or four 767s that we continue to see in ever increas- I strongly recommend that the Ap- and then in the following year we ing numbers—and I have been tracking propriations Committee remove that would have authorized some more, de- it for many years; every year the Ap- from or at least add: However, in prac- pending on what the administration propriations Committee adds more and tice, that is not the case. wanted. But now we are putting in 100 more projects that are not authorized We now have disabled veterans who every year; and this year it is a big airplanes that weren’t in the top 60 re- are not receiving the money that they jump—or we are going to stop it; or we quirements the Air Force told the Con- need. It is an effort that I and the Pre- are going to have a change in the rules gress and the American people they siding Officer have engaged in for sev- that comports with the Web site of the needed. After 10 years, one-third to eral years now. They do not have a Appropriations Committee; that is, one-fourth of their lifespan, we give very big lobby around here. They do that no appropriation will be made them back. How does anybody justify not have Rudy de Leon and Denny Mil- that is unauthorized and no appropria- this kind of procedure? ler, and a lot of high-priced lobbyists. tion will exceed the authorized level ei- I suggest that the Senate look at So veterans who have disabilities are ther in an appropriations bill or in a itself. I can’t speak for the House. The being deprived money they should conference report. Senate ought to look at itself. What rightly have, that any other person It is a pretty simple rule. And it are we doing? What do we do here? I stricken with a similar disability, would be subject to a point of order. think I may be one of four or five Sen- under any other circumstance, would Now, there are times where appro- ators who has examined this bill. I may receive. priations have to be made, and that is be one of four or five who has looked at We still have men and women in the where the point of order would come this bill because I have about 10 staff- military living in barracks that were in. But unless we change the rules the ers leafing through it trying to figure built during World War II and the Ko- way this body goes—I suggest to my out what is in it. Everybody certainly rean war. colleagues that they understand we can wants to go home. I understand that. We still have a situation, at least up have nice hearings. That is why I will not talk too much until the surge of patriotism as of Sep- We have some very interesting hear- longer. tember 11, where there has been enor- ings in the Commerce Committee on a I said on the floor of the Senate that mous difficulty in maintaining our broad variety of subjects. It is great. It the Department of Defense appropria- noncommissioned officers and our mid- is the most intellectually stimulating tions bill would be the last bill we con- level career officers. experience I have ever had in my serv- sidered because it would have the most A recent study by the U.S. Army ice on the Commerce Committee and pork in it because everybody would showed the greatest exodus of Army on the Armed Services Committee, of want to go home and nobody would captains in the history of the U.S. which I have been a member since 1987. want to look at it. This is a bill that Army, which is quite interesting, to I find it extremely enjoyable. The we received sometime this afternoon or say the least. discussions are wonderful. I learn more late morning, this is the legislation, We will not take care of these vet- about how our military is conducting $343 billion. What is it full of? Does erans, but we will put about $3 billion their operations, how we are planning anybody know? I have had about 10 out of the Commerce Committee— for the future. But do not think, as staffers trying to leaf through it and under the Commerce Committee juris- members of the authorizing com- find out. We have already found bil- diction—into this Department of De- mittee, you will have the slightest ef- lions of dollars of unauthorized fense appropriations bill. We will take fect on what is done in this body. projects.

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00069 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S13842 CONGRESSIONAL RECORD — SENATE December 20, 2001 This kind of behavior cannot go on. ingless not only the nonappropriators on the torch-bearers as they carry the It can’t go on. You will lose the con- but the debate we had. Why did we Olympic flame throughout the country. fidence of the American people. You waste a week debating the TEA–21 for- We have all been so heartened to see will lose their faith that you are rep- mula. Because we thought it was im- citizens from all walks of life passing resenting them and their tax dollars portant. We thought that was the way the torch, honoring everyday heroes. and their priorities. the money would be distributed. Then The message of the Salt Lake 2002 This is called war profiteering: On the Appropriations Committee takes Olympic Torch Relay is ‘‘Light the the 21st of December, the last bill, the that money and redistributes it, coinci- Fire Within.’’ The flame symbolizes last train loaded up, nobody has read dentally, to the States of the members the spirit and passion of individuals it, and we vote for it. We all vote for it of the Appropriations Committee. We who inspire others. The young people because, of course, we are in a war. We can’t continue doing this. who make great sacrifices to become can’t not do that. I won’t. But the fact I know the hour is late. I apologize to Olympic champions are certainly he- is, we better change the way we are my colleagues if I have inconvenienced roes. The flame celebrates not only the doing business, and we ought to look at them. But I warned them weeks ago Olympians, but people of all walks of ourselves and see if we are proper stew- that the last train would be the De- life who have inspired others. ards of the taxpayers’ dollars. fense appropriations bill, and every- While the Torch Relay is only a part More importantly, are we proper body would want to vote for it and of the Olympics, it is symbolic of the stewards of our Nation’s defense? Are leave. fire and passion for excellence that the we placing our national priorities for I just hope that a document this big, games are all about. it is ironic that a our military and the men and women with this much money, $343 billion in publication which has staked its rep- in the military and their needs first? taxpayers’ money, that before we vote utation on America’s passion for This is going to be a long war on ter- on something such as this again, at athleticism now just weeks before the rorism. We can’t afford to put all this least let’s look at it and see what it opening ceremony seeks to diminish stuff in a Defense appropriations bill contains. the glory of the games by sensational- that has nothing to do with defense. I yield the floor. izing an issue that has been scrutinized We can’t load it up with all this pork Mr. HATCH. Mr. President, I want to and laid to rest months ago. It is also for the Salt Lake City Olympics. We take this opportunity to set the record personally discouraging to me that one can’t give sweetheart deals to cruise straight with respect to a good deal of of our colleagues would seize this one lines. misinformation which has been circu- article, one story among a vast sea of Early next year when we come back, lating about Federal support for the positive journalism on the Olympics, as I will propose a change in the rules of 2002 Winter Olympic Games in Salt a populist club in a years-long crusade the Senate. I hope it will be considered Lake City, Utah. In fact, earlier today, to curb unwise and unneeded Federal by many of my colleagues. I know it one of our colleagues took the floor to spending. Good motive. Wrong target. probably won’t be considered by those condemn the funding Congress has pro- Those of our colleagues who are in- on the Appropriations Committee be- vided for the 2002 Olympics. I listened terested in a fair and balanced analysis cause now they have all the power. But carefully to his remarks. I have to say of Olympic spending should consult the I believe that this is a body of equals, that if his understanding of the situa- November, 2001 General Accounting Of- of 100 equal Senators. Some are elected tion were true, I could understand how fice, GAO, report, ‘‘Olympic Games to our majority; some are chairmen he feels. Unfortunately, however, I be- Costs to Plan and Stage the Games in and ranking members of committees lieve he and others have relied on in- the United States.’’ And if you have and, obviously, have more power than complete and distorted press accounts any problem getting a copy of the re- others. But we are equals when it which are, simply, a disservice to the port, let me know and I’ll send it right comes time to do what we should be Olympic spirit that a majority of over. The GAO study debunks many of able to do with the taxpayers’ dollars. The power is now in the hands of the Americans have raced to embrace. the criticisms and draws an accurate Appropriations Committee and those Most of these distortions seem to have picture which should put into proper members of the Appropriations Com- originated with an article in the De- perspective many of the misconcep- mittees. You read these things. First cember 10, 2001 edition of Sports Illus- tions that are circulating. As any fair- you laugh, and then you cry. It is real- trated. The article, ironically entitled minded reader can glean from the ex- ly unbelievable. I laughed when I saw ‘‘Snow Job,’’ is in fact a snow job tensive GAO analysis, the Sports Illus- $75,000 for the Reindeer Herders’ Asso- itself. trated article compares apples to or- ciation. I cried when I saw $6 million The thrust of the criticisms to which anges when calculating the costs of the for the airport in Juneau. We need to I refer appears to be an incorrect as- various Olympic planning events that upgrade airports all over America. sumption that, in seeking support for have taken place in this country. For I was very disturbed when I saw that the Olympic Games, the State of Utah example, critics of Olympic spending for the byways program, last year 40 is somehow attempting to enrich itself often compare transportation improve- States got money for the Scenic By- unfairly at the expense of American ments in Utah to those in Lake Placid, ways Program; this year it is 11. I was taxpayers. Nonsense. Poppycock. Ma- a small rural community. very disturbed when I saw the Trans- larky. What those who race to criticize The article also fails to take into portation Appropriations Committee our Olympic games fail to consider is consideration the passage of time and took $453 million out of the formula for that these are the world’s Olympic the changing scope of the Olympics as highway fund distribution to the Games, a time-honored tradition which the international communities’ par- States and distributed it among the our nation is so fortunate to be hosting ticipation in the Olympics has grown. States of the appropriators. How do in February. I find these slams against Most disappointing, the article to fails you justify that? the Olympic Games particularly dis- to demonstrate an understanding of We debated for a week in the Senate couraging given the fact that tomor- federal funding of state highway on that formula. I didn’t like the result row the Olympic torch will arrive on projects and the costs associated with because Arizona receives less money Capitol Hill. And I cannot fail to note highway projects already in the plan- from Washington in our taxpayers’ dol- that it was this very body, only days ning stages for federal funding. lars than we send, but I accepted the ago, that unanimously authorized the Earlier, our colleague decried that verdict of the entire 100 Senators. Now torch to be carried to our Capitol, and the Olympic Games will cost about $1.5 hundreds of millions of dollars that some are here today questioning our billion. Wrong again. Actually, it is should be fairly distributed under that support for that effort. over that amount. But as the GAO re- formula were taken by the Transpor- Enthusiasm has been building across port makes perfectly clear, Federal tation appropriators without a debate, the country as the torch makes its way support only accounts for 18 percent of without a hearing, and distributed to from Athens to Atlanta, and now from that total. In truth, as the GAO anal- the States of the appropriators. Atlanta to Washington to Salt Lake. ysis makes clear, the total projected That kind of thing cannot continue. Hundreds of thousands of spectators cost, both public and private, of stag- It cannot continue or it renders mean- have been lining the streets, cheering ing the 2002 Winter Olympic and

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00070 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S13843 Paralympic Games, excluding addi- funding for Utah transportation It is important to note that this light tional security requirements resulting projects over the last five years. It has rail project benefits all Salt Lake City from the September 11, 2001 terrorist been a popular parlor game to criticize citizens. Not only does it help the poor attacks, is $1.9 billion. Of this total, funding for Olympic transportation who are unable to afford cars but it GAO estimates that $342 million will be costs. Many naysayers have rushed to also draws commuters out of cars thus provided by the federal government, 18 judgment incorrect judgment I might helping the environment. Everyone percent. GAO also documents that the add assuming that any construction benefits from greater mobility and bet- State of Utah will provide $150 million. project underway in Utah must be a di- ter air quality. From the opening of That is eight percent, or almost half rect result of the Olympic Games and the line in 1999, ridership has far ex- the Federal amount provided by the 50 that the funding must be coming from ceeded expectations and it has contin- States for this international effort. sources outside Utah. ued to rise. Again, this project was not Local governments alone are pro- Nothing could be further from the built or funded as an Olympic project— viding four percent, or $75 million. And truth. The indiscriminate and arbi- it was approved by the Administration the Salt Lake Organizing Committee trary inclusion of all transportation and Congress based on a detailed anal- has raised the vast majority of the costs in federal funding figures for the ysis of the merits of the project itself funding, $1.3 billion. That is 70 percent. 2002 Olympics have dramatically and the long-term transportation needs This represents the hard work of hun- skewed the numbers to incorrectly sup- of the Salt Lake Valley. dreds of people who have spent weeks port the allegation that Utah has got- The University Connector Light Rail and months raising private donations. ten more than its fair share of Federal is the second phase of the light rail This is a true public-private partner- transportation dollars because of the program. It will run from downtown ship, which shows America at its best. Olympics. In fact, the Sports Illus- Salt Lake City to the University of So why are we not racing to praise this trated article is particularly guilty of Utah. In 2000, the Administration and Congress approved a full funding grant effort, rather than condemn it? The this erroneous assumption. agreement, allowing the Utah Transit GAO report levels the playing field by The article’s $1.5 billion price tag for Authority to begin construction. The making more accurate funding com- the Salt Lake Olympics includes well tremendous success of the North/South parisons with previous Olympic Games over $800 million in transportation light rail line was a key factor in the projects that were not designed specifi- held in the United States. Rather than decision by Congress and the Adminis- cally for the Olympics. Let me address using a dollar to dollar comparison, a tration to approve construction. Like the three largest projects that have at- distorted calculation, the GAO report the first phase, this phase was ap- tracted considerable attention and set uses a percentage comparison, a better proved by FTA pursuant to a rigorous gauge to assess the true costs to the the record straight. evaluation process. However, once the First, let me address the North/South Federal government. project was deemed to qualify under Light Rail in Salt Lake City. Since For the edification of my colleagues, the normal Federal guidelines, the Ad- 1983, the Utah Transit Authority has I would like to point out that a second ministration did choose to accelerate report will be published shortly that planed a light rail system to handle the it based on a possibility that it could compares the 2002 Winter Salt Lake increased traffic in and around Salt be completed before the Olympics. Nev- Winter Olympics with Olympic games Lake City on a daily basis. The system ertheless, everyone, including the Con- in other countries. This report will be design calls for two connected light gress, recognized that there was a pos- even more enlightening with regard to rail lines one running north and south sibility that the segment would not be total cost growth for the Olympic from downtown Salt Lake City south completed in time for the Olympic games and to the extent other govern- to Sandy City, and a second east/west Games and, therefore, the agreement ments have subsidized the Olympics. line connecting downtown with Salt included provisions allowing for the The GAO report indicates that while Lake International Airport and the temporary halt of construction with the total costs for staging the U.S. University of Utah. The system is de- resumption following the Games. Olympic games, particularly the winter signed to be built in phases with the Fortunately, UTA is on schedule to games, have grown, the percentage of first phase winning approval by the complete the project and therefore the federal participation has remained fair- Federal Transit Administration, FTA, extension will be operating during the ly constant taking into consideration through a rigorous competitive proc- Olympics. However, it is important to increasing security requirements due ess, in 1996. note that this project was never to the bomb incident in Atlanta and Under this process, FTA is required deemed necessary for the Olympic events since September 11, 2001. to rank proposed projects according to Games by the Salt Lake Organizing In fact, the Sports Illustrated article a number of objective criteria and to Committee; in fact, operations on the attempts to throw a negative spin on select those projects that are ranked line will be suspended for opening and security spending for the Olympics by highest. The criteria address such closing ceremonies at Rice-Eccles stating that ‘‘Surprisingly, all but $40 areas as ridership, mobility improve- Olympic Stadium, which is served by million of the $240 million in security ments, environmental benefits, oper- the University Connector. The cost of spending was approved before Sep- ational efficiencies, and cost effective- the project will be $118.5 million with tember 11.’’ Authors of the article fail ness. It is important to remember that $84.0 million federally funded. Without to appreciate that a great majority of the project must meet the FTA criteria a doubt, the most misunderstood of all the security money was dedicated be- before it is ever considered for federal the Utah transportation projects is the fore September 11 because the intel- funding and must compete with other I–15 reconstruction. This $1.59 billion ligence community had knowledge of projects. The first phase of the pro- project has been characterized as an the growing terrorist threat in the gram, the North/South line, was found Olympic project funded by the Federal world. worthy and funded by both Federal and government. Not true. After September 11, the fact that se- state transportation monies. This ac- It must be remembered that Utah is curity required little revision is testi- tion was completely independent of the a crossroads of the West and the I–15 mony to the thoroughness in Olympic Olympics. interstate highway is critical to re- security planning and preparation. For The North/South line was completed gional shipping and other transpor- any of my colleagues who still remain in December 1999 at a total project cost tation needs. It benefits everyone in unconvinced, I urge you to review the of $312.5 million, of which $241.3 million the region, including those in Cali- GAO report and obtain a true picture was paid by the federal government. fornia, Nevada, Arizona, New Mexico, of federal support for the Olympic The State of Utah paid $61.2 million and Idaho. The project was planned Games. which represents 20 percent of the bill. long before the Games, in the mid-1980s I also want to address specifically the This is in keeping with the traditional in fact. The I–15 improvements address issue of federal funding for an area that split for state transportation projects, additional capacity needs resulting has received the most attention in the the state can fund as little as 20 per- from normal growth in the Salt Lake press and elsewhere, yet is perhaps the cent and the federal as much as 80 per- Valley and correct some deplorable in- least understood. This concerns federal cent of the project costs. frastructure problems such as cracks in

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00071 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S13844 CONGRESSIONAL RECORD — SENATE December 20, 2001 roadbeds and crumbling bridges. Critics In closing, I want to express to my Mr. BIDEN. I join my colleagues in also fail to recognize that the I–15 colleagues and the American people my thanking Senator INOUYE and Senator project has been a bargain for the Fed- appreciation for their overwhelming STEVENS for their assistance in keeping eral government by any analysis. The support of the Olympic Games. The this funding in the final bill. As my Federal taxpayer is only funding $210 Salt Lake Games promise to be a fan- colleagues have indicated, smokeless million out of a $1.59 billion project. tastic family event, one that I hope nitrocellulose is a critical precursor for While the Federal government has au- that the whole nation will enjoy. We the ammunition of a number of vital thorized another $243 million in spend- should not let populist politics in weapons systems. By ensuring that ing for this project in Utah for advance Washington douse the Olympic flame more than one company produces it construction authority, these addi- in Utah. here in the United States, we are being tional Federal funds may not be used. PROCUREMENT OF SMOKELESS NITROCELLULOSE both fiscally responsible and prudent. Based on current projections, the Mr. TORRICELLI. I would like to SOUTHEAST MICHIGAN HEALTH ASSOCIATION DE- most the Federal government may con- take the opportunity to thank Senator tribute is 25–30 percent of the project VELOPMENT OF A HAND HELD WATER QUALITY INOUYE and Senator STEVENS and the DETECTION DEVICE cost well below the customary 80 per- Defense Appropriations Staff for their Mr. LEVIN. Mr. President, as the cent Federal share. Instead of criti- cooperation in securing $2 million for Senate considers the Fiscal Year 2002 cizing our State, we should be ap- the procurement of smokeless nitro- Appropriations Act for the Department plauded. Some here today might ask, cellulose in this year’s Department of of Defense, I would like to emphasize ‘‘Why did Utah pick up the lion’s share Defense, DoD, Appropriations Bill. In- the importance of portable water qual- of the I–15 reconstruction?’’ deed, the provision included in this leg- Utah, though a relatively small ity detection equipment in homeland islation will help ensure that our na- state, is seriously committed to trans- security. Such devices are a important tion will continue to have at least two portation improvements as dem- tools for ensuring a safe water supply domestic suppliers of smokeless nitro- onstrated by the dedication of state for all Americans. cellulose. funds for transportation projects. The The $2 million direct procurement for In Michigan, like the rest of the Utah State Legislature, during the 1997 this vital product will reestablish country, there is a vital need to imple- session, established an aggressive state Green Tree Chemical Technologies of ment responsible water quality moni- funding program. The program, known Parlin, New Jersey as a viable compet- toring and tracking due to serious as the Centennial Highway Fund, CHF, itor for the DoD industrial base. Fur- threats to public health through raw will provide for over $3 billion for thermore, this purchase will enable sewage discharges into its lakes and transportation improvements across Green Tree to be viable for the long the industrial outfalls that pollute the entire state over a ten year period. term. It will continue to produce the lakes such as Lake St. Clair. Since The I–15 reconstruction project is the qualified material for DoD programs September 11, this need is even more premier project funded under the CHF and provide the only other production important. We must protect sources of program. Clearly, the annual alloca- base in the United States for what is a drinking and recreational water for our tion of about $200 million per year in citizens by developing technologies federal highway funds is insufficient to volatile product. Mr. CORZINE. I concur with my col- that can identify and quantify haz- address all of the transportation needs league with regard to the importance ardous water pollutants in near ‘‘real of the state. time’’. I want to point out that these three of the smokeless nitrocellulose provi- transportation projects, rather than a sion included in this year’s defense Four county health departments, grab of federal money based on some spending bill. In fact the importance of Wayne, Oakland, Macomb and St. loose association with the Olympics, this provision cannot be overempha- Clair, together with the U.S. Army are in fact long-planned and well sized because Green Tree now produces Tank Automotive Research and Devel- thought-out projects to benefit the the qualified nitrocellulose for the Tri- opment Center, TARDEC, and Wayne local community. The light rail system dent II, LOSAT, TOW and HELLFIRE State University, along with the sup- has been nationally noted as a shining missile programs. Had the provision port of the Michigan Department of example of urban/suburban Smart providing the $2 million procurement Environmental Quality, comprise a Growth. And interestingly, all three of nitrocellulose been omitted, these consortium that is proposing to prove/ projects were considered and planned important missile programs could have develop methodologies to develop field as a Joint Transportation Corridor been disrupted because re-qualifying portable equipment to detect chemical which was one of the first in the coun- DoD materials can be costly and time and biological contaminants including try submitted for an environmental consuming. warfare agents. These technologies will impact assessment. Today such joint Mr. CARPER. My two colleagues accomplish the objectives of protecting corridors are common, but the Utah from New Jersey are correct in their public health and the health of our projects were first among this trend. assessment of the importance of this $2 military by providing a valuable tool Finally, I take great exception with million appropriation for smokeless ni- that can determine water quality. trocellulose. Earlier this year, an anti- the Sports Illustrated article’s sensa- September 11 has placed a new ur- competitive joint venture, which would tional innuendos about some Utah gency on the need to implement a field have centralized the production of this businessmen. Did these businessmen detection program to ensure safe pota- key ingredient in Defense Department benefit from road improvements due to ble drinking water supplies for civil- programs, threatened Green Tree. In- the Olympic venues held on or near ians as well as military personnel. deed, had the Federal Trade Commis- their property? Undoubtedly. However, Funding provided in this bill is essen- sion not found the joint venture to be we must remember that these are busi- tial to the Southeast Michigan Health monopolistic, Green Tree would have nessmen who have invested in property Association’s research and I would urge been forced to close its New Jersey and infrastructure over the course of the Environmental Protection Agency plant. The provision was inserted to many years. They have taken risks by to make this project a priority when the conference report to serve the same investing in the growth of the commu- distributing the funds provided in this purpose as an amendment added to the nity. bill. As a result, many others have bene- Senate DoD appropriations bill to pro- fitted from their efforts. When federal vide Green Tree with a $2 million pro- Mr. BYRD. The Senator from Michi- money is spent on any state transpor- duction grant. gan has a very important point. I hope tation project, the citizens of that By including this vital provision, that the people at the Environmental state benefit. Some are richer; some Congress will ensure the survival of Protection Agency will take note of his are poorer than others. The Sports Il- Green Tree and enhance and sustain remarks. lustrated article holds the rest of the the competitive domestic production Mr. LEVIN. I thank my friend from United States to one standard and base for smokeless nitrocellulose which West Virginia and the committee for Utah to another. I do not consider this plays a key role in many DoD weapons their hard work in putting together responsible journalism. programs. this important legislation.

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00072 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S13845 OFFICE OF JUSTICE PROGRAMS Mr. LOTT. I thank my distinguished Mr. STEVENS. It is. There are a Mr. LOTT. Mr. President, the supple- colleague for his assistance in this number of other nations and at least mental spending portion of the Depart- matter. one private company who have ex- ment of Defense Appropriations bill for BOEING 767 LEASING PROVISION pressed an interest in procuring gen- fiscal year 2002, H.R. 3338, including Mrs. MURRAY. I rise to engage the eral purpose, commercially configured funding for the Department of Justice Chairman and Ranking Member of the tanker aircraft. Office of Justice Programs’ Justice As- Senate Defense Appropriations Sub- Mrs. MURRAY. Then would you say sistance account. Among the author- committee in a colloquy regarding the that a commercial market exists for ized uses of these funds are research Boeing 767 leasing provision included in these aircraft? and development to support counter- the fiscal year 2002 Defense Appropria- Mr. STEVENS. I would. terrorism technologies, training for tions bill. Mrs. MURRAY. I ask the Senator first responders, and grants for State Ms. CANTWELL. I rise to join my from Hawaii, would you agree that a and local domestic preparedness sup- colleague from the State of Wash- general purpose aircraft that will meet port. The scope of events for which our ington to discuss this matter. the general requirements of many cus- communities are attempting to prepare Mr. INOUYE. I would be pleased to tomers; that can operate as a passenger is broad, including release of radio- discuss this matter with the Senators. aircraft, a freighter, a passenger/ logical, chemical or biological agents, Mr. STEVENS. As would I. freighter ‘‘combination’’ aircraft, or as explosions, armed confrontations, and Mr. ROBERTS. This is a matter that an aerial refueling tanker; and is avail- hostage-taking. While the details of is important to the Nation, our na- able to either government or private how these situations would affect a tional security, and the great State of customers meets the definition of a community and the appropriate re- Kansas. I, too, would like to join with general purpose, commercially config- sponses differ due to local cir- my colleagues to review the leasing ured aircraft? cumstances, weather, and topography, issue. Mr. INOUYE. I believe that assess- similar methods for planning for, de- Mrs. MURRAY. I agree with my col- ment makes sense. Mrs. MURRAY. I thank the Senator. tecting, and monitoring these events league from Kansas. The aging of our military air refueling tanker fleet has Ms. CANTWELL. The opportunity may apply nationwide. has been presented to the Air Force It has come to my attention that become a critical military operations and the Boeing company to come to- technology and supporting online serv- issue-one that requires a bold solution gether to make this leasing provision ices are available to communities to now. The Air Force’s fleet of over 500 work for the benefit of our national se- provide emergency responders with the KC–135 air refueling tankers is, on av- curity and our industrial base. I urge information necessary to manage and erage, more than 40 years old. In fact, the oldest of these tankers—100 KC– them to do so quickly and coopera- mitigate damage from such terrorist tively. acts that have the potential to endan- 135E models—are close to 45 years in age. New 767 air refueling tankers are Mr. ROBERTS. I agree and pledge my ger individuals and entire commu- support to making this effort a suc- nities. These systems are capable of already under development and could begin replacing the KC–135 Es within 2 cessful one. monitoring from a remote location the years. There would be no up-front de- Mr. STEVENS. I thank the Senators release of radiological, chemical, and velopment costs to the military. for their remarks and for their pledges biological agents over open terrain or Ms. CANTWELL. Of equal impor- of support. urban environments. Taking into con- tance is the need to support our com- Mr. INOUYE. I join with my friend, sideration real-time weather condi- mercial and military industrial base in the Senator from Alaska, to thank you tions from multiple meteorological the wake of the September 11 terrorist for your remarks and let you know sensors, these systems can assess the attacks. The provision included in the that Senator STEVENS and I will close- need for evacuations and the potential fiscal year 2002 Defense Appropriations ly follow the progress of this new pro- for human loss or harm and physical bill will allow the Air Force to meet a gram. damage. pressing military need and ensure con- Mr. CONRAD. Mr. President, I rise to I appreciate that the Office of Justice tinued, strong demand for the Boeing offer for the RECORD a preliminary Programs works hard, both within its 767 aircraft. In this regard, it is my un- scoring by the Budget Committee of research and development arm, the Na- derstanding that the provision included the conference report to H.R. 3338, the tional Institute for Justice, and in co- in the bill permits the leasing of up to Department of Defense Appropriations ordination with other Departments and 100 purpose Boeing 767 aircraft in a Act for fiscal year 2002. I will be sub- agencies, to develop new technologies commercial configuration for up to 10 mitting a final, official statement for and standardized equipment and train- years. Is that correct? the record after CBO completes its ing to assist State and local responders Mr. INOUYE. That is correct. And scoring of the conference report. with their preparations for these type contrary to some reports, this provi- Preliminarily, the conference report of events. It seems an appropriate use sion is permissive in nature. I believe provides $317.207 billion in non- the funds provided by this bill to the this provision provides the right solu- emergency discretionary budget au- Office of Justice Programs to assess tion at the right time to address the thority, almost all of which is for de- the capabilities of such systems and Air Force’s needs. fense activities. That budget authority their utility for State and local enti- Mr. STEVENS. I agree with Senator will result in new outlays in 2002 of ties with domestic terrorism respon- INOUYE’s remarks. Not only with this $212.907 billion. When outlays from sibilities, and to work with other de- provisions allow for timely delivery of prior-year budget authority are taken partments and agencies to include such critical military assets, but it requires into account, nonemergency discre- systems in standard equipment lists for that the leasing costs be 10 percent less tionary outlays for the conference re- domestic terrorism response. I ask the than the life cycle costs of the aircraft port total $309.256 billion in 2002. By Senator from New Hampshire, who is were they to be purchased outright. comparison, the Senate-passed bill pro- the ranking member on the appropria- Mr. ROBERTS. It is my under- vided $317.206 billion in nonemergency tions subcommittee overseeing the De- standing that Italy and Japan have se- budget authority, which would have re- partment of Justice, whether he agrees lected the 767 tanker for their air sulted in $309.365 billion in outlays. with that assessment. forces and that 767s are being modified In addition, H.R. 3338 includes $20 bil- Mr. GREGG. I agree that new tech- in Wichita already. Italy intends to lion in emergency-designated funding. nologies of the type described by the buy four of the tankers and Japan in- That funding represents the second $20 Republican Leader may indeed prove tends to purchase at least one. I also billion previously authorized by and useful to local responders. I encourage know that this same tanker configura- designated as emergency spending the Office of Justice Programs to con- tion is being offered commercially to under Public Law 107–38, the Emer- sider such systems and work to include other countries to meet their in-flight gency Supplemental Appropriations such systems in its standard equipment fueling requirements. Is that the Sen- Act for Recovery from and Response to list for domestic terrorism response if ator from Alaska’s understanding as Attacks on the United States. An esti- such systems prove effective. well? mate of the impact on outlays from the

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00073 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S13846 CONGRESSIONAL RECORD — SENATE December 20, 2001 emergency funding is not available at H.R. 3338, CONFERENCE REPORT TO THE DEPARTMENT Congress as much the President, the this time. OF DEFENSE APPROPRIATIONS ACT, 2002 PRELIMINARY Senate Appropriations Committee has The conference report to H.R. 3338 SCORING—Continued not seen fit to change in any degree its violates section 302(f) of the Congres- [Spending comparisons—Conference Report, in millions of dollars] usual blatant use of defense dollars for sional Budget Act of 1974 because it ex- projects that may or may not serve General ceeds the subcommittee’s Section Mandatory Total purpose 2 some worthy purpose, but that cer- 302(b) allocation for both budget au- tainly impair our national defense by thority and outlays. Similarly, because Outlays ...... 127,640 0 127,640 President’s request: depriving legitimate defense needs of the committee’s allocation is tied to Budget Authority ...... (1,923) 0 (1,923) adequate funding. the current law cap on discretionary Outlays ...... (1,686) 0 (1,686) Even in the middle of a war, a war of House-passed 2 spending, H.R. 3338 also violates sec- Budget Authority...... 0 0 0 monumental consequences, the Appro- tion 312(b) of the Congressional Budget Outlays ...... 383 0 383 Senate-passed 2 priations Committee is intent on using Act. The bill includes language that Budget Authority...... 1 0 1 the Department of Defense as an agen- raises the cap on discretionary cat- Outlays ...... (109) 0 (109) cy for dispensing corporate welfare. It egory spending to $681.441 billion in 1 For enforcement purposes, the budget committee compares the con- is a terrible shame that in a time of ference report to the Senate 302(b) allocation. budget authority and $670.206 billion in 2 All but $3 million of the nonemergency budget authority provided in the maximum emergency, the United outlays and the cap on conservation conference report is for defense activities. States Senate would persist in spend- category outlays to $1.473 billion. How- Notes.—Details may not add to totals due to rounding. Totals adjusted ing money requested and authorized for consistency with scorekeeping conventions. In addition, the conference ever, because that language is not yet report includes $20 billion in emergency funding related to the September only for our Armed Forces to satisfy law, the budget committee cannot in- 11th attacks. An estimate of the outlay impact from the emergency spend- the needs or the desires of interests ing is not available at this time. crease the appropriations committee’s that are unrelated to defense needs. allocation by the amount of the pend- Mr. MCCAIN. Mr. President, I rise The Investor’s Business Daily, on De- ing cap increase at this time, putting it once again to address the issue of cember 18, 2001, had this to say in an in violation of the two points of order. wasteful spending in appropriations article titled At the Trough: Welfare In addition, by including language measures, in this case the bill funding Checks To Big Business Make No that increases the cap on discretionary the Department of Defense for fiscal Sense, ‘‘Among the least justified out- spending, adjusts the balances on the year 2002. In provisions too numerous lays is corporate welfare. Budget ana- pay-as-you-go scorecard for 2001 and to mention in detail, this bill, time and lyst Stephen Slivinski estimates that 2002 to zero, and directs the scoring of again, chooses to fund pork barrel business subsidies will run $87 billion a provision in the bill, H.R. 3338 also projects with little if any relationship this year, up a third since 1997, Al- violates section 306 of the Congres- to national defense at a time of scarce though President Bush proposed $12 sional Budget Act. Finally, the bill vio- resources, budget deficits, and under- billion in cuts to corporate welfare this lates section 311(a)(2)(A) of the Con- funded, urgent defense priorities. year, Congress has proved resistant. In- gressional Budget Act by exceeding the As I pointed out previously to this deed, many post-September 11 bailouts spending aggregates assumed in the body on December 7th, the massive De- have gone to big business. Boeing is 2002 budget resolution for fiscal year partment of Defense Appropriations one of the biggest beneficiaries. Rep- 2002. Bill Conference Report, totaling $343 resentative NORM DICKS, Democrat The conference report to H.R. 3338 billion, would be the last business in from Washington, is pushing a substan- violates several budget act points of the Senate and so it is. Not because of tial increase in research and develop- order; however, it is good bill that ad- its level of difficulty, but because it is ment support for Boeing and other de- dresses the Nation’s defense needs, in- so easy to hide the mother of all pork fense contractors, the purchase of sev- cluding the defense of our homeland. projects in a large massive bill or The President and Congressional lead- eral retrofitted Boeing 767s and the maybe it wasn’t because we found it as leasing of as many as 100 767s for pur- ers from both parties agreed in the well as many other groups. For exam- wake of the September 11 attack that poses ranging from surveillance to re- ple, let me read a few comments. fueling. Boeing has been hurt by the more money was needed to respond to Our Nation is at war, a war that has storm that hit airlines, since many the terrorists and to protect our home- united Americans behind a common companies have slashed orders. Yet land. This report follows that bipar- goal—to find the enemies who terror- tisan agreement and includes language ized the United States on September China recently agreed to buy 30 of the that raises the cap on discretionary 11th and bring them to justice. In pur- company’s planes, and Boeing’s prob- spending. I urge its adoption. suit of this goal, our servicemen and lems predate the September 11 attack. I ask unanimous consent that a table women are serving long hours, under It is one thing to compensate the air- displaying the budget committee scor- extremely difficult conditions, far lines for forcibly shutting them down; ing of H.R. 3338 be printed in the away from their families. Many other it is quite another to toss money at big RECORD. Americans also have been affected by companies caught in a down demand There being no objection, the mate- this war and its economic impact, cycle. Boeing, along with many other rial was ordered to be printed in the whether they have lost their jobs, their major exporters, enjoys its own federal RECORD, as follows: homes, or have had to drastically cut lending facility, the Export-Import expenses this holiday season. The Bank. ExIm uses cheap loans, loan H.R. 3338, CONFERENCE REPORT TO THE DEPARTMENT weapons we have given them, for all guarantees and loan insurance to sub- OF DEFENSE APPROPRIATIONS ACT, 2002 PRELIMINARY their impressive effects, are, in many sidize purchases of U.S. products. The SCORING cases, neither in quantity nor quality, bulk of the money goes to big business [Spending comparisons—Conference Report, in millions of dollars] the best that our government can pro- that sell airplanes, machinery, nuclear power plants and the like. Last year General vide. Mandatory Total purpose 2 For instance, stockpiles of the preci- alone, Boeing benefitted from $3.3 bil- lion in credit subsidies. While cor- Conference report: sion guided munitions that we have re- Budget Authority ...... 317,207 282 317,489 lied on so heavily to bring air power to porate America gets the profits, tax- Outlays ...... 309,256 282 309,538 payers get the losses. . . .The Con- Senate 302(b) allocation:1 bear so effectively on difficult, often Budget Authority ...... 181,953 282 182,235 moving targets, with the least collat- stitution authorizes a Congress to pro- Outlays ...... 181,616 282 181,898 mote the general welfare, not enrich President’s request: eral damage possible, are dangerously Budget Authority ...... 319,130 282 311,224 depleted after only 10 weeks of war in Boeing and other corporate behemoths. Outlays ...... 310,942 282 311,224 There is no warrant to take from Peter House-passed: Afghanistan. This is just one area of Budget Authority ...... 317,207 282 317,489 critical importance to our success in so Paul can pay higher corporate divi- Outlays ...... 308,873 282 309,155 Senate-passed: this war that underscores just how dends. In the aftermath of September Budget Authority ...... 317,206 282 317,488 carefully we should be allocating 11, the American people can ill afford Outlays ...... 309,365 282 309,647 scarce resources to our national de- budget profligacy in Washington. If CONFERENCE REPORT fense. Congress is not willing to cut corporate COMPARED TO Senate 302(b) allocation:1 Yet, despite the realities of war, and welfare at a time of national crisis, Budget Authority ...... 135,254 0 135,254 the responsibilities they impose on what is it willing to cut?’’

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00074 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S13847 As I mentioned last week when the end of the lease, the taxpayers will appears to be a small provision that Senate version of the Defense Appro- have to foot the bill for $30 million has large implications on our priations bill was being debated and— more, to convert the aircraft back— warfighting ability in Afghanistan and now carried through the Conference pushing the total cost of the Boeing around the world. Without debate or Committee there is a sweet deal for the sweetheart deal to $30 billion over the advice and counsel from the Com- Boeing Company that I’m sure is the ten-year lease. Mr. President, that is mittee on Armed Services, the appro- envy of corporate lobbyists from one waste that borders on gross negligence. priators changed the policy on military end of K Street to the other. Attached But this is just another example of construction which would prohibit pre- is a legislative provision to the Fiscal Congress’ political meddling and of vious authority given to the President Year 2002 Department of Defense Ap- how outside special interest groups of the United States, the Secretary of propriations bill that would require the have obstructed the military’s ability Defense, and the Service Secretaries to Air Force to lease one hundred 767 air- to channel resources where they are shift military construction money craft for use as tankers for $26 million most needed. I will repeat what I’ve within the MILCON account to more apiece each year for the next 10 years. said many, many times before—the critical military construction projects Moreover, in Conference Committee military needs less money spent on in time of war or national emergency. the appropriators added four 737 air- pork and more spent to redress the se- The reason for this seemingly small craft for executive travel mostly bene- rious problems caused by a decade of change is to protect added pork in the declining defense budgets. fitting Members of Congress. We have form of military construction projects This bill includes many more exam- been told that these aircraft will be as- ples where congressional appropriators in key states, especially as such signed to the 89th Airlift Wing at An- show that they have no sense of pri- projects have historically been added drews Air Force Base. Since the 10-year ority when it comes to spending the by those Members who sit on the Mili- leases have yet to be signed, the cost of taxpayers’ money. The insatiable appe- tary Construction Appropriations Sub- the planes cannot be calculated, but it tite in Congress for wasteful spending committee, at the expense, Mr. Presi- costs roughly $85 million to buy one grows more and more as the total dent, of projects the Commander-in- 737, and a lease costs significantly amount of pork added to appropria- Chief believes are most needed to sup- more over the long term. tions bills this year—an amount total- port our military overseas. The cost to taxpayers? ing over $15 billion. Does the appropriations committee Two billion and six hundred million This defense appropriations bill also have any respect for the authorizing dollars per year for the aircraft plus includes provisions to mandate domes- committees in the Senate? another $1.2 billion in military con- tic source restrictions; these ‘‘Buy I look forward to the day when my struction funds to modify KC–135 hang- America’’ provisions directly harm the appearances on the Senate floor for ars to accommodate their larger re- United States and our allies. ‘‘Buy this purpose are no longer necessary. placements, with a total price tag of America’’ protectionist procurement There is nearly $2.5 billion in more than $30 billion over 10 years policies, enacted by Congress to pro- unrequested defense programs in the when the costs of the 737 leases are also tect pork barrel projects in each Mem- defense appropriations bill and another included. This leasing plan is five ber’s State or District, hurt military $1.1 billion for additional supplemental times more expensive to the taxpayer readiness, personnel funding, mod- appropriations not directly related to than an outright purchase, and it rep- ernization of military equipment, and defense that have been added by the resents 30 percent of the Air Force’s cost the taxpayer $5.5 billion annually. Chairman of the Committee. Consider annual cost of its top 60 priorities. But In many instances, we are driving the what $3.6 billion when added to the sav- the most amazing fact is that this pro- military to buy higher-priced, inferior ings gained through additional base gram is not actually among the Air products when we do not allow foreign closings and more cost-effective busi- Force’s top 60 priorities nor do new competition. ‘‘Buy America’’ restric- ness practices could be used for. The tankers appear in the 6-year defense tions undermine DoD’s ability to pro- problems of our armed forces, whether procurement plan for the Service! cure the best systems at the least cost in terms of force structure or mod- That is right, when the Air Force and impede greater interoperability ernization, could be more assuredly ad- told Congress in clear terms what its and armaments cooperation with our dressed and our warfighting ability top priorities were tankers and medical allies. They are not only less cost-ef- greatly enhanced. The public expects lift capability aircraft weren’t included fective, they also constitute bad policy, more of us. as critical programs. In fact, within its particularly at a time when our allies’ But for now, unfortunately, they top 30 programs, the Air Force has support in the war on terrorism is so must witness us, blind to our respon- asked for several essential items that important. sibilities in war, going about our busi- would directly support our current war Secretary Rumsfeld and his prede- ness as usual. effort: wartime munitions, jet fighter cessor, Bill Cohen, oppose this protec- I ask unanimous consent that the list engine replacement parts, combat sup- tionist and costly appropriation’s pol- of earmarks from the fiscal year 2002 port vehicles, bomber and fighter up- icy. However, the appropriations’ staff Department of Defense Appropriations grades and self protection equipment, ignores this expert advice when pre- Bill Conference Report be placed in the and combat search and rescue heli- paring the legislative draft of the ap- RECORD. copters for downed pilots. propriations bills each year. In the de- There being no objection, the mate- Let me say that again, within its top fense appropriations bill are several ex- rial was ordered to be printed in the 30 programs, the Air Force has asked amples of ‘‘Buy America’’ pork—prohi- RECORD, as follows: for several essential items that would bitions on procuring anchor and moor- FY 2002 Defense appropriations pork directly support our current war effort: ing chain components for Navy war- [In millions] wartime munitions, jet fighter engine ships; main propulsion diesel engines DIVISION A ...... replacement parts, combat support ve- and propellers for a new class of Navy hicles, bomber and fighter upgrades dry-stores and ammunition supply Operation and Maintenance, and self protection equipment, and Army: ships; supercomputers; carbon, alloy, Fort Knox Distance Learning combat search and rescue helicopters or armor steel plate; ball and roller Program ...... 2.1 for downed pilots. bearings; construction or conversion of Army Conservation and Eco- This leasing program also will re- any naval vessel; and, other naval aux- system Management ...... 4.3 quire $1.2 billion in military construc- iliary equipment, including pumps for Fort Richardson, Camp Denali tion funding to build new hangars, all shipboard services, propulsion sys- Water Systems ...... 0.6 since existing hangars are too small for tem components such as engines, re- Rock Island Bridge Repairs ...... 2.0 the new 767 aircraft. The taxpayers duction gears, and propellers, ship- Memorial Tunnel, Consequence Management ...... 16.5 also will be on the hook for another $30 board cranes, and spreaders for ship- FIRES Programs Data ...... 6.8 million per aircraft on the front end to board cranes. Skid Steer Loaders ...... 7.5 convert these aircraft from commercial Also buried in the smoke and mirrors USARPAC Transformation configurations to military; and at the of the appropriations markup is what Planning ...... 8.5

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00075 Fmt 0624 Sfmt 0655 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S13848 CONGRESSIONAL RECORD — SENATE December 20, 2001 FY 2002 Defense appropriations pork— FY 2002 Defense appropriations pork— FY 2002 Defense appropriations pork— Continued Continued Continued USARPAC Command, Control, Distance Learning ...... 30.0 Tactical Communication On- and Communications Up- SRM reallocation ...... 25.0 Board Training ...... 4.5 grades ...... 3.2 Army Guard Education Pro- Air Traffic Control On-Board Hunter UAV ...... 2.5 gram at NPS ...... 2.0 Trainer ...... 2.8 Field Pack-up Systems ...... 2.5 Operation and Maintenance, Air WSN–7B ...... 7.0 Unutilized Plant Capacity ...... 17.5 National Guard: Naval Shore Communications .. 48.7 SROTC—Air Battle Captain ..... 1.0 Extended Cold Weather Cloth- Missle Procurement, Air Force: Joint Assessment Neurological ing System ...... 2.5 NUDET Detection System ...... 19.066 Examination Equipment ...... 2.6 Defense Systems Evaluation .... 1.7 Other Procurement, Air Force: Repairs Ft. Baker ...... 1.0 Eagle Vision (Air Guard) ...... 8.5 CAP COM and ELECT ...... 7.0 Fires Program Data Capt...... 6.8 Bangor International Airport Pacific AK Range Complex Mobility Enhancement Study .. 0.5 repairs ...... 5.0 Mount Fairplay ...... 6.3 Classified Programs, Undistrib- Military Techniques Costing UHF/VHF Radios for Mont uted ...... 0.35 Model ...... 6.3 Fairplay, Sustina ...... 3.0 Operation and Maintenance, Angel Gate Academy ...... 1.5 National Guard and Reserve Navy: GSA Leased Vehicle Program ... 1.75 Equipment: Naval Sea Cadet Corps ...... 1.0 Camp Gruber Regional Trade Navy Reserve Misc. Equipment 15.0 Shipyard Apprentice Program .. 7.8 Center ...... 2.4 Marine Corps Misc. Equipment 10.0 PHNSY SRM ...... 12.8 Information Technology Man- Air Force Reserve Misc. Equip- Warfare Tactics PMRF ...... 20.4 agement Training ...... 1.0 ment ...... 10.0 Hydrographic Center of Excel- Rural Access to Broadband Army National Guard Misc. lence ...... 2.5 Technology ...... 3.4 Equipment ...... 10.0 UNOLS ...... 1.5 National Guard State Partner- Air Guard C–130 ...... 219.7 Center of Excellence for Dis- ship Program ...... 1.0 Lasermarksmenship Training aster Management and Hu- Aircraft Procurement, Army: Center ...... 8.5 manitarian Assistance ...... 4.3 Oil debris detection and burn- UH–60 Blackhawk ...... 8.7 Biometrics Support ...... 2.5 off system ...... 3.5 Engage Skills Training ...... 4.2 Operation and Maintenance, Air ATIRCM LRIP ...... 7.0 Multirole Bridging Compound .. 15.7 Force: Guardrail Mods ...... 5.0 Braley ODS ...... 51.0 Pacific Server Consolidation .... 8.5 Procurement of Weapons and Heavy Equipment Training Grand Forks AFB ramp refur- Tracked Combat Vehicles, System ...... 2.5 bishment ...... 5.0 Army: Bradley Reactive Armor Reserve Composition System ... 15.5 Wind Energy Fund ...... 0.5 Tiles ...... 20.0 P19 Truck Crash ...... 3.5 University Partnership for Weapons Procurement, Navy: Other Procurement, Army: Operational Support ...... 3.4 Drones and Decoys ...... 14.9 Automated Data Processing Hickam AFB Alternative Fuel Shipbuilding and Conversion, Equipment ...... 14.0 Program ...... 1.0 Navy: Camouflage: ULCANS ...... 4.0 SRM Eielson Utilidors ...... 8.5 Minehunter Swath ...... 1.0 Aluminum Mesh Tank Liner .... 3.5 Civil Air Patrol Corporation .... 3.2 Yard Boilers ...... 3.0 AN/TTC Single Shelter Switch- PACAF Strategic Airlift plan- Research, Development, Test, and es w/Associated Support ...... 26.5 ning ...... 1.7 Evaluation, Army: Elmendorf AFB transportation Blackjack Secure Facsimile ..... 7.0 Environmental Quality Tech- infrastructure ...... 10.2 Trunked Radio System ...... 1.4 nology Dem/Val ...... 10.36 MTAPP ...... 2.8 Modular Command Post ...... 2.5 End Item Industrial Prepared- Operation and Maintenance, De- Laundry Advance Systems ness Activities ...... 20.6 fense-Wide: (LADS) ...... 3.0 Defense Research Sciences Cold Civil Military programs, Inno- Abrams & Bradley Interactive Weather Sensor Performance 1.0 vative Readiness Training ..... 8.5 Skills Trainer ...... 6.3 Advanced Materials Processing 3.0 DoDEA, Math Teacher Leader- SIMNET ...... 10.5 FCS Composites Research ...... 2.5 ship ...... 1.0 AFIST ...... 8.3 AAN Multifunctional Materials 1.5 DoDEA, Galena IDEA ...... 3.4 Ft. Wainwright MOUT Instru- HELSTF Solid State Heat Ca- DoDEA, SRM ...... 5.0 mentation ...... 6.5 pacity ...... 3.5 OEA, Naval Security Group Ac- Target Receiver Injection Mod- Photonics ...... 2.5 tivity, Winter Harbor ...... 4.0 ule Threat Simulator ...... 4.0 Army COE Acoustics ...... 3.5 OEA, Fitzsimmons Army Hos- Tactical Fire Trucks ...... 4.0 Cooperative Energetics Initia- pital ...... 3.8 IFTE ...... 15.0 tives ...... 3.5 OEA Barrow landfill relocation 3.4 Maintenance Automatic Identi- TOW ITAS Cylindrical Battery OEA, Broadneck peninsula fication Technology ...... 3.0 Replacement ...... 1.5 NIKE site ...... 1.0 National Guard Distance Cylindrical Zinc Air Battery for OSD, Clara Barton Center ...... 1.0 Learning Courseware ...... 8.0 LWS ...... 1.8 OSD, Pacific Command Re- Smart Truck ...... 3.4 Heat Actuated Coolers ...... 1.0 gional initiative ...... 6.0 ULCANS ...... 4.0 Improved High Rate Alkaline OEA, Adak airfield operations .. 1.0 Floating Crane ...... 7.0 Cells ...... 1.0 OSD, Intelligence fusion study 5.0 2KW Military Tactical Gener- Low Cost Reusable Alkaline Free Markets ...... 1.4 ator ...... 2.5 (Manganese-Zinc) Cells ...... 0.6 Trustfund for demining and Firefighting Training System .. 1.2 Rechargeable Cylindrical Cell mine eviction ...... 14.0 Lightweight Maintenance En- System ...... 1.5 Impact aid ...... 30.0 closure ...... 1.2 Waste Minimization and Pollu- Legacy ...... 12.9 GUARDFIST ...... 3.0 tion Research ...... 2.0 Operation and Maintenance, Army Live Fire Ranges ...... 3.5 Molecular and Computational Army National Guard: USARPAC C–4 suites ...... 7.2 Risk Assessment (MACERAC) 1.4 Distributed Learning Project ... 25.5 Aircraft Procurements, Navy: Center for Geosciences ...... 1.5 ECWCS ...... 2.5 JPATS (16 aircraft) ...... 44.6 Cold Regions Military Engi- Camp McCain Simulator Cen- ECP–583 ...... 24.0 neering ...... 1.0 ter, trainer upgrades ...... 3.2 PACT Trainer ...... 6.0 University Partnership for Fort Harrison Communications Direct Support Squadron Read- Operational Support (UPOS) 3.4 Infrastructure ...... 1.0 iness Training ...... 4.5 Plasma Energy Pyrolysis Sys- Communications Network UC–45 ...... 7.5 tem (PEPS) ...... 3.0 Equipment ...... 0.209 Other Procurement, Navy: DOD High Energy Laser Test Multimedia classroom ...... 0.85 JEDMICS ...... 11.5 Facility ...... 15.0 Camp McCain Training Site, Pacific Missile Range Equip- Starstreak ...... 16.0 roads ...... 2.2 ment ...... 6.0 Center for International Reha- Full Time Support, 487 addi- IPDE Enhancement ...... 4.2 bilitation ...... 1.4 tional technicians ...... 11.2 Pearl Harbor Pilot ...... 4.3 Dermal Phase Meter ...... 0.6 Emergency Spill Response and AN/BPS–15H Navigation Sys- Minimally Invasive Surgery Preparedness Program ...... 0.79 tem ...... 6.3 Simulator ...... 1.4

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00076 Fmt 0624 Sfmt 0655 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S13849 FY 2002 Defense appropriations pork— FY 2002 Defense appropriations pork— FY 2002 Defense appropriations pork— Continued Continued Continued Minimally Invasive Therapy .... 5.0 Hemoglobin Based Oxygen Car- Health Study at the Iowa Army Anthropod-Borne Infectious rier ...... 1.0 Ammunition Plant ...... 1.0 Disease Control ...... 2.5 Hepatitas C ...... 3.4 Coastal Cancer Control ...... 5.0 VCT Lung Scan ...... 3.2 Joslin Diabetes Research-eye Drug Interdiction and Counter- Tissue Engineering Research .... 4.7 Care ...... 4.2 Drug Activities, Defense: Monocional Anti-body based LSTAT ...... 2.5 Mississippi National Guard technology (Heteropolymer Secure Telemedicine Tech- Counter Drug Program ...... 1.8 System) ...... 3.0 nology Program ...... 2.0 West Virginia Air National Dye Targeted Laser Fusion ...... 3.4 Memorial Hermann Telemedi- Guard Counter Drug Program 3.0 Regional Counter Drug Train- Joint Diabetes Program ...... 5.0 cine Network ...... 9.0 Center for Prostate Disease Re- Monoclonal Antibodies ...... 1.0 ing Academy, Meridian MS ... 1.4 search ...... 6.4 Earmarks: Emergency Telemedicine Re- Maritime Technology Spine Research ...... 2.1 sponse and Advanced Tech- (MARITECH) ...... 5.0 Brain Biology and Machine Ini- nology Program ...... 1.5 Metals Affordability Initiative 5.0 tiative ...... 1.8 National Medical Testbed ...... 7.7 Magnetic Bearing cooling Medical Simulation training Neurofibromatosis Research turbin ...... 5.0 initiative ...... 0.75 Program ...... 21.0 Roadway Simulator ...... 13.5 TACOM Hybrid Vehicle ...... 1.0 Neurology Gallo Center-alco- Aviator’s night vision imaging N–STEP ...... 2.5 holism research ...... 5.6 system ...... 2.5 IMPACT ...... 3.5 Neurotoxin Exposure Treat- HGU–56/P Aircrew Integrated Composite Body Parts ...... 1.4 ment Research Program ...... 17.0 System ...... 5.0 Corrosion Prevention and Con- Polynitroxylated Hemogolbin .. 1.0 Fort Des Moines Memorial trol Program ...... 1.4 SEAtreat cervical cancer vis- Park and Education Center ... 5.0 Mobile Parts Hospital ...... 5.6 ualization and treatment ...... 1.7 National D-Day Museum ...... 5.0 Vehicle Body Armor Support Smart Aortic Arch Catheter ..... 1.0 Dwight D. Eisenhower Memo- System ...... 3.3 National Tissue Engineering rial Commission ...... 3.0 Clean Radar Upgrade, Clean Casting Emission Reduction Center ...... 2.0 AFS, Alaska ...... 8.0 Program ...... 5.8 Center for Prostate Disease Re- Managing Army Tech. Environ- Padgett Thomas Barracks, search at WRAMC ...... 6.4 Charleston, SC ...... 15.0 mental Enhancement ...... 1.0 Research, Development, Test, and Visual Cockpit Optimization .... 4.2 Broadway Armory, Chicago ...... 3.0 Evaluation, Navy: Advancer Identification, JCALS ...... 10.2 Southeast Atlantic Coastal Ob- Electronic Commodity Pilot Friend-or-Foe ...... 35.0 serving System (SEA–COOS) 4.0 Transportation Mult-Platform Program ...... 1.0 Marine Mammal Low Fre- Battle Lab at Ft. Knox ...... 3.5 Gateway Integration for quency Sound Research ...... 1.0 TIME ...... 10.0 AWACS ...... 20.0 Maritime Fire Training/Barbers Emergency Traffic-Manage- Force Provider Microwave Point ...... 2.6 ment ...... 20.7 Treatment ...... 1.4 3-D Printing Metalworking Washington-Metro Area Transit Mantech Program for Cylin- Project ...... 2.5 Authority ...... 39.1 drical Zinc Batteries ...... 1.8 Nanoscale Science and Tech- Ft. Knox MOUT site upgrades .. 3.5 Continuous Manufacturing nology Program ...... 1.5 Civil Military Programs, Inno- Process for Mental Matrix Nanoscale devices ...... 1.0 vative ...... 10.0 Composities ...... 2.6 Advanced wateriet-21 project ... 3.5 ASE INFRARED CM ATIRCM Modular Extendable Rigid Wall LRIP ...... 10.0 Shelter ...... 2.6 DDG–51 Composite twisted rud- der ...... 1.0 Tooling and Test Equipment .... 35.0 Combat Vehicle and Auto- Integrated Family of Test High Resolution Digital mam- motive technology ...... 14.0 Equipment (IFIE) ...... 15.0 Auto research center ...... 2.0 mography ...... 1.5 T–AKE class ship (Buy America) Hydrogen DEM fuel cell vehicle Military Dental Research ...... 2.8 Welded shipboard and anchor demonstration ...... 5.0 Vector Thrusted Ducted Pro- chain (Buy America) Electronic Display Research .... 9.0 peller ...... 3.4 Dwight D. Eisenhower Memorial Fuel Cell Power Systems ...... 2.5 Ship Service Fuel Cell Tech- Gwitchyaa Zhee Corporation Polymer Extrusion/Multilami- nology Verification & Train- lands nate ...... 2.6 ing Program ...... 2.0 Air Forces’s lease of Boeing 767s DoD Fuel Cell Test and Evalua- Aluminum Mesh Tank Liner .... 1.5 Enactment of S. 746 tion Center ...... 5.1 AEGIS Operational Readiness 2002 Winter Olympics in Salt Ft. Meade Fuel Cell Demo ...... 2.5 Training System (ORTS) ...... 4.0 Lake City, Utah Biometrics ...... 5.1 Materials, Electronics and Nutritional Program for Diabetes Project, Pittsburgh .... 5.1 Computer Technology ...... 19.3 Women, Infants and Children 39.0 International Sports Competi- Osteoporois Research ...... 2.8 Human Systems Technology .... 2.6 Aluminum Reinforced Metal Undersea Warfare Weaponry tion ...... 15.8 Animal and Plant Health In- Matrix Composition ...... 2.5 Technology ...... 1.7 Medical Development ...... 59.0 spection Survey ...... 105.5 Combat Vehicle Res Weight Re- Food and Safety Inspection ...... 15.0 Manpower, Personell and Train- duction ...... 6.0 Total Pork in Division A (FY 2002 ing ADV Tech DEV ...... 2.0 Ft. Ord Celanup Demonstration Defense Approps): $2.5 Billion ... Project ...... 2.0 Environmental Quality and Lo- DIVISION B ...... Vanadium Tech Program ...... 1.3 gistics AD Tech ...... 1.4 ERADS ...... 2.0 Research, Development, Test, and Commerce related earmarks: Advanced Diagnostics and Evaluation, Defense-Wide: Port Security ...... 93.3 Airports and Airways Trust Therapeutic Digital Tech ...... 1.3 Bug to Drug Identification and Fund, payment to air carriers 50.0 Artifical Hip ...... 3.5 CM ...... 2.0 DoT Office of the Inspector Biosensor Research ...... 2.5 American Indian higher edu- General ...... 1.3 cation consortium ...... 3.5 Brain Biology and Machine Ini- FAA Operations (from aviation Business/Tech manuals R&D .... 1.5 tiative ...... 1.8 Trust Fund) ...... 200.0 Cancer Center of Excellence AGILE Port Demonstrations .... 8.5 FAA Facilities and Equipment 108.5 (Notre Dame) ...... 2.1 Defense Health Program: Passenger Bag Match Dem- Center for Integration of Medi- Hawaii Federal healthcare net- onstration at Reagan Na- cine and Innovative Tech- work ...... 15.3 tional Airport ...... 2.0 nology ...... 8.5 Pacific island health care refer- Federal Highway Administra- Center for Untethered Health- ral program ...... 4.3 tion misc. appropriations ($10 care at Worcester Poly- Alaska Federal healthcare Net- m requested) ...... 100.0 technic Institute ...... 1.0 work ...... 2.125 Capital Grants to the National Continuous Expert Care Net- Brown Tree Snakes ...... 1.0 Railroad Passenger Corpora- work Telemedicine Program 1.5 Tri-Service Nursing Research tion ...... 100.0 Disaster Relief and Emergency Program ...... 6.0 Federal Transit Administration Medical Services (DREAMS) 8.0 Graduate School of Nursing ..... 2.0 Capital Investment Grants .... 100.0

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00077 Fmt 0624 Sfmt 0655 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S13850 CONGRESSIONAL RECORD — SENATE December 20, 2001 FY 2002 Defense appropriations pork— The record is clear. The Air Force those items. Instead, the C–5 avionics Continued has been a contributing partner and funding is cut by $70.50 million and Restoration of Broadcasting fully supports the tanker replacement there are only 4 Blackhawks going to Facilities ...... 8.25 program contained in this appropria- the Army National Guard. National Institute of Standards tions bill. Let me first review the importance of and Technology ...... 30.0 The existing tankers are old and re- the C–5 Avionics Modernization Pro- Federal Trade Commission ...... 20.0 FAA Grants-in-AID for Airports 175.0 quire costly maintenance and up- gram which was not only fully funded Woodrow Wilson Bridge Project 29.542 grades. The K–135s were first delivered in the Senate’s Defense Appropriations Provision relating to Alaska in to the Air Force in 1957. On average, bill, but which both the House and Sen- the Transportation Equity they are 41 years old. KC–135s spend ate Armed Services Committees fully Act for the 21st Century ...... about 400 days in major depot mainte- supported in their bills. US–61 Woodville widening nance every 5 years. The C–5 is what the military uses project in Mississippi ...... 0.3 Interstate Maintenance Pro- The tanker replacement program when it needs to deploy quickly with as gram for the city of Trenton/ contained in this bill will save tax- much equipment as possible. This was Port Quendall, WA ...... 4.0 payers $5.9 billion in upgrade and main- confirmed once again in Operation En- Interstate Sports Competition tenance costs. during Freedom where the Air Force Defense ...... 15.8 The record is clear. We need to move reports that C–5s have hauled forty-six Utah Olympics Public Safety forward on tanker replacement. Our percent of the cargo during the oper- Command ...... 0.02 FEMA support of the 2002 Salt aging tankers have flown more than ation while only flying approximately Lake Olympic Games ...... 10.0 6000 sorties since September 11. Our twenty-eight percent of the sorties. Relocation costs and other pur- ability to project force depends on our This plane is a vital part of our mili- poses for 2002 Winter Olym- refueling capabilities. We can no longer tary success. It is also a key player in pics ...... 15.0 ignore these old and expensive aircraft. our nation’s humanitarian efforts, so Chemical and Biological Weap- The record is also clear on my State critical to the long-term success of our ons Preparedness for DC Fire of Washington. This will help the peo- national security strategy. Dept ...... 0.205 Response and Communications ple of my state. Washington now has Taking $70.5 million from the Presi- Capability for DC Fire Dept .. 7.76 the highest unemployment rate of any dent’s funding request means that crit- Search and Rescue and Other state in the nation. I am here to do ev- ical Secretary of Defense directed Emergency Equip. and Sup- erything I can to help my constituents. Flight and Navigation Safety modifica- port for DC Fire ...... 0.208 Any Senator, including critics of the tions and Global Air Traffic Manage- Office of the Chief Technology leasing provisions in this bill, would do ment modifications will be delayed by Officer of the DC Fire Dept .... 1.0 Training and Planning for the the same thing. up to a year or more. Delays in install- DC Fire Dept ...... 4.4 But this is not just about my State. ing the safety equipment continue to Protective Clothing and Every state involved in aircraft pro- place aircrews at risk at a time when Breathing Apparatus for DC duction will benefit. they are engaged around the world in Fire Dept ...... 0.922 In addition, it is in our national in- the war on terrorism and humanitarian Specialized Hazardous Mate- terest to keep our only commercial air- missions. Delays also prevent the C–5 rials Equipment for the DC craft manufacturer healthy in tough from being fully employed in certain Fire Dept ...... 1.032 Total Commerce Related Ear- times, to keep that capacity and to parts of the world as AMP modifica- marks: ...... $1.1 Billion keep that skill set. tions are necessary to comply with new Total Pork in FY 2002 Defense The Air Force has identified this as a GATM regulations. Appropriations Conference Re- critical need. We rely on refueling At a time when we are asking our port: ...... $3.6 Billion tankers. Now is the time to move for- military to do so much, to deny our Mrs. MURRAY. Mr. President. I rise ward with tanker replacement. I again aircrews and military planners C–5s to lend my strong support to the De- commend Senator INOUYE, Senator that have the safety upgrades and oper- partment of Defense Appropriations STEVENS, Senator CANTWELL, Senator ational improvements that the AMP Conference Report. CONRAD, Senator ROBERTS and the will provide does not make sense. And I do so with great admiration many others who worked so hard to Again, I am sorry that the House did and respect for the leadership dem- move this program forward. not agree with the Senate. I hope we onstrated by Chairman DANIEL INOUYE Shortly, we are all going to go home can reverse this problem next year by and Senator TED STEVENS. They have for the holidays to be with our fami- accelerating the program with in- done great work, and I encourage the lies. Senators can go home knowing creased funding. I will certainly fight Senate to embrace this appropriations that they have sent a very powerful to do that and I hope that other col- conference report. message to the families of our service leagues who have been supportive in I do want to briefly address the issue members. We have acted today with the past will join me in that fight next of tanker replacement which has been this bill to equip our personnel now year. hotly debated here on the floor. I sup- and in the future with best equipment My other concern with this bill is port the tanker leasing provisions in and the best technology available to that the Army National Guard’s need the bill, and I am again grateful to our armed forces. I will proudly vote for additional UH–60 Blackhawk heli- Senator INOUYE and Senator STEVENS for this conference report. copters has not been properly ad- for their work on the Boeing 767 leas- Mr. BIDEN. Mr. President, I rise dressed. Today, the Army National ing provisions. Many Senators worked today to thank my Senate colleagues Guard comprises fifty percent of the on this issue. There were many hurdles for their support of two important Army’s total utility airlift capability. to address and overcome. And we aviation needs and to express my dis- Unfortunately, only twenty-seven per- worked through them all together in a appointment that the House did not cent of the fleet is usually flyable. On bipartisan fashion. support those decisions. I know that it a regular basis a full seventy-three per- I want to again quote the Secretary is always difficult to reconcile the de- cent of the utility helicopters in the of the Air Force from a letter he wrote cisions made in the Senate with those Guard are grounded because of a lack to me in early December. Secretary made in the House, but this case, I am of parts or safety of flight concerns! James Roche says and I quote, very sorry to see that the Senate’s wis- Virtually every state confronts signifi- The KC–135 fleet is the backbone of our Na- dom was not sustained. cant shortages, and some states, like tion’s Global Reach. But with an average age When the Defense Appropriations bill Delaware, have absolutely no modern of over 41 years, coupled with the increasing left the Senate, it included full-funding helicopters, relying instead on one or expense required to maintain them, it is for two important aviation assets—C–5 readily apparent that we must start replac- two Vietnam-era helicopters. ing these critical assets. I strong endorse be- avionics modernization and 10 addi- This means that regular state mis- ginning to upgrade this critical warfighting tional Blackhawks for the Amy Na- sions cannot be executed. Pilots and capability with new Boeing 767 tanker air- tional Guard. Unfortunately, the bill maintenance personnel cannot remain craft. that we have before us does not include proficient. These skilled personnel are

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00078 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S13851 not able to do their job, get frustrated, tinues this trend. The bill provides a tions. Beginning in 2004, the Pacific and decide not to stay in the military. targeted pay raise effective January 1, missile test bed will allow more chal- Meanwhile, the Army is simply un- 2002, ranging 5 to 10 percent, with the lenging testing in a far wider range of ready in this area. In normal times, largest increase going to junior officers engagement scenarios than can be ac- these are unacceptable realities. and non-commissioned officers. commodated today. Today, when the Guard has been asked While no member enjoys having bases The conferees provided the following to do so much more, it is unfathomable closed in their State, or even the possi- levels for the restructured programs: to me that we would not do more to fix bility of closure, it is that time that we $780 million for BMD system activities these problems. recognize we do have excess capacity including battle management, commu- The Senate recognized the need to do and that is time to consider another nications, targets, countermeasures, more and provided a first installment round of base closings as requested by and system integration; $2.2 billion of ten new Blackhawk helicopters for the administration. After much negoti- (matching the President’s request) for the Army Guard. Unfortunately, this ating, the conferees authorized a round terminal defense systems, including bill only provides four. Today, many in of base closings in 2005, with estab- Patriot Advanced Capability-3 (PAC–3), utility aviation units do not have even lished criteria based on actual and po- Medium Extended Air Defense System the bare minimum they need to stay tential military value that the Sec- (MEADS), Navy Area (which has now proficient, let alone do their missions. retary of Defense must use to deter- been cancelled by the Administration), This is certainly true in Delaware and mine which bases to recommend. Theater High Altitude Air Defense I know it also true for at least five As the rulemaking member of the (THAAD), and international missile de- other states. This bill does not even Strategic Subcommittee, I would like fense programs, including the Arrow allow the Guard Bureau to put one new to congratulate my chairman, Senator program; $3.9 billion (matching the Blackhawk in each state that needs REED, for his good work on this bill. He President’s request) for mid-course de- seven to ten! worked in a bipartisan and even handed fense systems, including ground-based The men and women who serve in the manner. While we disagreed on the (formerly known as national Missile Guard every day, both in their states missile defense programs, Senator Defense) and sea-based (formerly and overseas, deserve to have the REED and I were in agreement on most known as Navy Theater Wide Defense) equipment they need to perform their of the remaining major issues before missile defense programs; $685 million missions. I am sorry the House did not the subcommittee. (matching the President’s request) for agree to do more to address their avia- While many in Congress may dis- boost phase systems, including the Air- tion needs this year and I will work agree on funding levels of missile de- borne Laser (ABL) and Space-Based with my colleagues again next year to fense, no one can argue that ballistic Laser (SBL); $496 million (matching try to improve this situation. missiles, armed with nuclear, biologi- the President’s request) for the Space- Mr. President, this bill includes a cal, or chemical warheads, present a Based Infrared System (SBIRS) and number of important items that will considerable threat to U.S. troops de- international sensor programs, includ- benefit our military and I support it. ployed abroad, allies, and the American ing the Russian-American Observation But, I want to put my colleagues on homeland. The consequences of such an Satellite project; $113 million (match- notice that next year I will be fighting attack on the United States would be ing the President’s request) for devel- to accelerate C–5 modernization and to staggering; yet the United States cur- opment of technology and innovative get additional UH–60s for the Army Na- rently has no system capable of effec- concepts necessary to keep pace with tional Guard. The Senate spoke wisely tively stopping even a single ballistic evolving missile threats; last week in fully funding both of these missile headed toward the American However, the conferees did not sup- aviation needs and I am sorry that the homeland or depolyed U.S. troops. port the President’s request to transfer House was unwilling to sustain that To end this vulnerability, the Presi- PAC–3, Medium Extended Air Defense wisdom. dent requested a significant increase in System, and Navy Area programs from Mr. ALLARD. Mr. President, being funding for ballistic missile defense BMDO to the military services. The that I was not able to discuss the Fis- programs which was an important first bill requires the Secretary of Defense cal Year 2002 Defense Authorization step toward protecting all Americans to establish guidelines for future trans- Act last Thursday, I wanted to take a against ballistic missile attack. The fers, and to certify that transferred few minutes to discuss a few aspects of conference provided up to $8.3 billion, programs are adequately funded in the this very important bill. $3 billion more than the fiscal year 2001 future year defense program. I strongly support the Fiscal Year level, for the continued development of Just as the President moves to re- 2002 Defense Authorization Act. I want ballistic missile defenses. In addition, duce our nuclear forces the conferees to congratulate Chairman LEVIN and the conferees provided flexibility for repealed the statute that prohibits the the Ranking Member WARNER for the the President to use up to $1.3 billion U.S. from retiring or dismantling cer- good work and the way they have of these funds for programs to combat tain strategic nuclear forces until moved this important bill for our men terrorism. START II enters into force. As part of and women in the military. I believe In an effort to increase the efficiency this effort, the conferees increased this is a balanced bill which provides a and productivity of the missile defense funding for the retirement of the much needed and deserved increase for programs, the administration re- Peacekeeper ICBM. our military men and women. After quested to fundamentally restructure The Strategic Subcommittee also has years of declining budgets, this bill the nation’s ballistic missile defense oversight over two-thirds of the De- continues the increase in resources programs into six primary areas: partment of Energy’s budget as it re- which started 2 years ago. Boost, Midcourse, Terminal Defenses, lates to our nuclear forces and defense The bill provides $343.3 billion in Systems Engineering, Sensor, and nuclear cleanup programs. budget authority, plus authorizes the Technology Development. This new ap- During the subcommittee’s hearings, $21.2 billion in emergency supple- proach will provide the flexibility to we heard from DOE that one of the mental appropriations as requested by allow programs that work to mature major shortfalls of the Department is the President in order to respond to but the ability to cancel programs that the conditions of the infrastructure of the terrorist attacks. The bill also adds do not. Plus, the program will provide our DOE labs and plants, the need for a over $779.4 million above the request enhanced testing and test infrastruc- principal deputy administrator at the for the Department of Energy’s envi- ture. National Nuclear Security Administra- ronmental cleanup programs and nu- A major testing initiative included in tion, and an increase in DOE’s environ- clear weapons activities. the President’s request is the 2004 Pa- mental cleanup programs and nuclear When I became the Personnel Sub- cific missile defense test bed, the con- weapons activities. committee Chairman in 1999, the sub- ferees supported the request, for $786 Therefore the conferees provided $6.2 committee provided the first major pay million for the including $273 million billion for DOE environmental cleanup raise for our troops in over 20 years and for construction primarily at fort and management programs including: I am glad that this year’s bill con- Greely, Alaska and other Alaska loca- $3.3 billion for work at facilities with

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00079 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S13852 CONGRESSIONAL RECORD — SENATE December 20, 2001 complex and extensive environmental cleanup levels for the site will be deter- When I introduce S. 381, my Military problems that will be closed after 2006; mined by the various laws and proc- Voting Rights Bill, I sought to improve $1.1 billion for the Defense Facilities esses set forth in the Rock Flats Clean- the voting rights of overseas military Closure Project; $959.7 million for con- up Agreement and State and Federal voters in six key ways. And this Senate struction and site completion at facili- law; and agreed to include that bill in our ties that will be closed by 2006; $216 Fourth, we firmly believe that access version of the defense authorization. million ($20 million more than the rights and property rights must be pre- But I am severely dismayed that the President’s request) for the Defense served. Therefore, this legislation rec- conference report contained none of Environmental Restoration and Waste ognizes and preserves all mineral the most important provisions relating Management Science and Technology rights, water rights and utility rights- to military voting. programs; and $153.5 million ($12 mil- of-ways. This act does, however, pro- Considering the egregious acts of last lion more than the President’s request) vide the Secretary of Energy and the November, with the memory of cam- for Defense Environmental Manage- Secretary of Interior the authority to paign lawyers standing ready with pre- ment Privatization. impose reasonable conditions on the printed military absentee ballot chal- In regards to the National Nuclear access to private property rights for lenge forms, we needed to respond. And Security Administration conferees pro- cleanup and refuge management pur- yet the House of Representatives, led vided $7.1 billion for managing the na- poses. by the House Administration Com- tion’s nuclear weapons, nonprolifera- I would also like to highlight another mittee, refused to accept the sections tion and naval reactor programs, in- section of the bill which encourages of the Senate passed bill that would cluding: $1 billion for stockpile life ex- the implementation of the rec- most effectively ensure the voting tension and evaluation programs; $2.1 ommendations of the Space Commis- rights of our military men and women billion for focused efforts to develop sion, which concluded that the Depart- and their families. the tools and knowledge necessary to ment of Defense is not adequately or- In September, the GAO released a 92- ensure the safety, reliability, and per- ganized or focused to meet U.S. na- page report entitled ‘‘Voting Assist- formance of the nuclear stockpile in tional security space needs. There are ance to Military and Overseas Citizens the absence of underground nuclear four major sections of the provision. Should Be Improved.’’ I will not read weapons testing. Included in this, the The first provision requires the Sec- the entire thing, but let me read one of conferees provided $219 million to fully retary of Defense to submit a report on the summary headers: ‘‘Military and fund plutonium pit manufacturing and steps taken to improve management, Overseas Absentee Ballots in Small certification; $200 million to begin to organization and oversight of space Countries Were Disqualified at a High- recapitalize the nation’s nuclear weap- programs, space activities, and funding er Rate Than Other Absentee Ballots.’’ ons complex infrastructure, much of and personnel resources. I also have an article from the Wash- which dates to the post-World War II The second provision requires the ington Post, page A17, November 22, era; $688 million for the naval reactors Secretary of Defense to take actions 2000 that reads in part ‘‘...lawyers program, which supports operation, that ensure space development and ac- spent a contentious six hours trying to maintenance and continuing develop- quisition programs are jointly carried disqualify as many as possible of the ment of Naval nuclear propulsion sys- out and, to the maximum extent prac- absentee ballots sent in by overseas tems. ticable, ensure that offers of the Army, military personnel.’’ There is one issue that I am very Navy, Marine Corps, and Air Force are Let me also read from a Miami Her- proud to say is included in this bill and assigned to and hold leadership posi- ald article, November 19, 2000: ‘‘Forty that is the creation of the Rocky Flats tions in such joint program offices. percent of the more than 3,500 ballots National Wildlife Refuge. This effort Third, the conferees request that the in Florida were thrown out last week has been done in a bipartisan manner Comptroller General report back to for technical reasons, and elections ob- with Congressman UDALL and more Congress on the actions taken by the servers are wondering whether the than 2 years worth of work by local Secretary of Defense to implement the State’s election laws are fair, espe- citizens, community leaders, and elect- recommendations contained in the cially to military personnel.’’ ed officials. Its passage has ensured Commission report. Two main flaws in the military voter that our children and grandchildren Fourth, due to the concerns of the system—flaws that we have concrete will continue to enjoy the wildlife and ‘‘tripled hatted’’ nature of the Com- proof were exploited—could have been open space that currently exists at mander-in-Chief, U.S. Air Force Space fixed last week by sections of the Mili- Rocky Flats. However, even with its Command, the bill states that the posi- tary Voting Rights bill that the House passage, my primary goal remains the tion should not serve concurrently as refuses to accept. safe cleanup and closure of Rocky commander of the North American Air The first section prohibits a State Flats. Defense Command and as Commander- from disqualifying a ballot based upon I would like to mention a few of the in-Chief, U.S. Space Command. Plus, lack of postmark, address, witness sig- following high points of the bill. the bill provides the needed flexibility nature, lack of proper postmark, or on Rocky Flats will remain in perma- in general officer limits to ensure that the basis of comparison of envelope, nent federal ownership through a the commander of Air Force Space ballot and registration signatures transfer from the Department of En- Command will serve in the grade of alone—these were the basis for most ergy to the U.S. Fish and Wildlife Serv- general. absentee ballot challenges. ice after the cleanup and closure of the Finally, even though I strongly sup- There has been report after report of site is complete; port the Fiscal Year 2002 Authorization ballots mailed—for instance form de- Secondly, we understand the impor- Act, I am very disappointed that this ployed ships or other distant postings— tance of planning for the transpor- bill ignored real shortcoming as it re- without the benefit of postmarking fa- tation needs of the future and have au- lates to our military’s voting rights. cilities. Sometimes mail is bundled, thorized the Secretary of Energy and While my original bill went much and the whole group gets one post- the Secretary of the Interior the oppor- further in implementing the Space mark, which could invalidate them all tunity to grant a transportation right- Commission report, I believe this is a under current law. Military ‘‘voting of- of-way on the eastern boundary of the first good step and, if needed, I hope we ficers’’ are usually junior ranks, quick- site for transportation improvements can revisit this issue next year to en- ly trained, and facing numerous other along Indiana Street; sure that space management and pro- responsibilities. We can not punish our The third point is one of the most grams get the senior level support it service personnel for the good faith important directives in this Act and it deserves. mistakes of others. states that ‘‘nothing . . . shall reduce Finally, even though I strongly sup- And military voters who are dis- the level of cleanup and closure at port this bill, I am very disappointed charged and move before an election Rocky Flats required under the RFCA that this bill ignored a real short- but after the residency deadline cannot or any Federal or State law.’’ I believe coming as it relates to our military vote through the military absentee bal- it is important to reiterate that the voting rights. lot system, and sometimes are not able

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00080 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S13853 to fulfill deadlines to establish resi- expands, the Federal Government’s po- thousands of feet of rock block out dency in a State. There are roughly tential tort liability well beyond pro- other cosmic radiation. 20,000 military personnel separated vided in the Federal Tort Claims Act. Earlier this year, I met with several each month. Our section allowed them The Federal Government’s liability of these scientists to determine how to use the proper discharge forms as a with respect to environmental claims they planned to move forward. They residency waiver and vote in person at would also be potentially unlimited. It told me they intended to submit a pro- their new polling site. This brings mili- is unclear whether the bill affects posal to the National Science Founda- tary voters into their new community Homestake’s obligations under court- tion for a grant to construct the lab- quicker. But the House rejected this approved Consent Decrees (CD) that oratory. After a thorough peer review, section as well. the Federal Government has already the National Science Foundation would The Senate moved to address these entered into. These CDs address certain determine whether or not it would be problems. The Houses refuses to do so. remediation and natural resource dam- in the best interests of science and the This is an issue I, and those who feel as age claims. There are additional legal United States for such a laboratory to strongly as I do, such as our nation’s issues related to the Anti-Deficiency be built. The scientists also explained veteran and active duty service organi- Act and tort law concerning compensa- that since the National Science Foun- zations, will continue to press. tion after the fact of injury. dation normally does not own research Mr. BOND. Mr. President. I rise to Funding this costly project would facilities, the mine would need to be raise some significant concerns about also potentially sap funding for other conveyed from Homestake Mining S. 1389, the Homestake Mine Convey- current and new initiatives that have Company to the State of South Dakota ance Act of 2001, which has been at- scientific merit and which the Congress for construction to take place. For the tached to the Department of Defense- and Administration fully support. company to be willing to donate the Supplemental conference report. Critically important scientific research property, and for the state to be will- This legislation will have serious ad- initiatives such as nanotechnology, in- ing to accept it, both would require the verse implications for the Federal Gov- formation technology, and bio- Federal Government to assume some of ernment most notably, the National technology initiatives may be signifi- the liability associated with the prop- Science Foundation (NSF) and the En- cantly impaired. Major research erty. vironmental Protection Agency projects related to astronomy, engi- The purpose of the Homestake Mine (EPA)—due to its unprecedented legal neering, and the environment could be Conveyance Act of 2001 is to meet that protections provided to the State and cut back or not funded. need. It establishes a process to convey the Homestake Mining Company and I hope my colleagues will be sen- the mine to the State of South Dakota, its potentially significant budgetary sitized to the dangerous legal, budg- and for the Federal Government to as- costs. etary, and policy implications of the sume a portion of the company’s liabil- While some modifications to the Homestake legislation. I am extremely ities. This Act will only take effect if original have been made to the bill to troubled by this legislation and hope the National Science Foundation se- address many of the problematic legal that political pressure does not influ- lects Homestake as the site for an un- and programmatic issues, these ence the ultimate outcome of the pro- derground laboratory. Only property changes were modest at best and the posed project in the Homestake bill. needed for the construction of the lab bill as a whole still has significant Mr. DASCHLE. Mr. President, I am will be conveyed, and conveyance can legal, budgetary, and policy implica- delighted that the Congress has incor- only take place after appropriate envi- tions that could negatively impact porated S. 1389, the Homestake Mine ronmental reviews and after the Envi- NSF and EPA. This bill is an improve- Conveyance Act of 2001, as amended, ronmental Protection Agency certifies ment over the original legislation in- into the fiscal year 2002 Department of the remediation of any environmental troduced by the senators from South Defense Appropriations conference re- problems. If the mine is conveyed, the Dakota, but it is still problematic and port. State of South Dakota will be required troubling. This important legislation will en- to purchase environmental insurance As the ranking member of the VA- able the construction of a new, world- for the property and set up an environ- HUD Appropriations Subcommittee, I class scientific research facility deep in mental trust fund to protect the tax- believe in deferring to the scientific ex- the Homestake Mine in Lead, SD. Not payers against any environmental li- pertise and judgment of the NSF and only will this facility create an oppor- ability that may be incurred. its Science Board in determining which tunity for critical breakthroughs in I believe this process is fair and equi- projects had scientific merit and de- physics and other fields, it will provide table to all involved. It will enable the served funding. The Congress should unprecedented new economic and edu- laboratory to be constructed and the not be in the business of legislating cational opportunities for South Da- environment to be protected. what is scientifically meritorious. The kota. I am not a scientist, and the decision Homestake legislation totally cir- Just over a year ago, the Homestake to build this laboratory must be made cumvents the merit review process Mining Company announced that it in- by the scientific community. However, long-established and followed by the tended to close its 125-year-old gold it is helpful to review some of the in- agency. mine in Lead, SD, at the end of 2001. formation I have received from the The reality of this matter is that the This historic mine has been a central team of scientists supporting this South Dakota Senators are using NSF part of the economy of the Black Hills project to better understand why we as a means to save jobs that will be for over a century, and the closure of would take the unusual step of con- lost from the closing of the mine. the mine was expected to present a sig- veying a gold mine to a state with fed- While I appreciate the effort to save nificant economic blow to the commu- eral indemnification. people’s jobs, it should not be done by nity. Dr. John Bahcall is a scientist at the undermining the scientific merit re- In the wake of this announcement, Institute for Advanced Study in view process. This is simply the wrong you can imagine the surprise of South Princeton, NJ. He was awarded the Na- approach and creates a new, dangerous Dakotans to discover that a committee tional Medal of Science in 1998. He is a precedent. of prominent scientists viewed the clo- widely recognized expert in neutrino Further, the broad indemnification sure of the mine as an unprecedented science and an authority on the sci- provisions in the bill, even with the new opportunity to establish a Na- entific potential of an underground lab- proposed modifications, are sweeping. tional Underground Science Labora- oratory. Recently, I received a letter The Federal Government would also be tory in the United States. Because of from him explaining the research op- required to provide broad indemnifica- the extraordinary depth of the mine portunities created by an underground tion to both the Homestake Mining and its extensive existing infrastruc- laboratory. In the letter, he explained, Company and the State for PAST and ture, they found that the mine would ‘‘There are pioneering experiments in FUTURE claims related to the site. be an ideal location for research into the fields of physics, astronomy, biol- The sweeping and unprecedented lan- neutrinos, tiny particles that can only ogy, and geology that can only be car- guage is in conflict with, and greatly be detected deep underground, where ried out in an environment that is

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00081 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S13854 CONGRESSIONAL RECORD — SENATE December 20, 2001 shielded from the many competing phe- together the team’s findings in a report The mine is fully permitted for safe- nomena that occur on the surface of entitled, ‘‘The U.S. National Under- ty and rock disposal on site, and is lo- the earth. These experiments concern ground Science Laboratory at cated in a state supportive of mining. such fundamental and applied subjects Homestake: Status Report and Up- The mine includes surface buildings, as: How stable is ordinary matter? date.’’ extensive fiber optics and communica- What is the dark matter of which most I’d like to share some of their report: tions systems, a large inventory of of our universe is composed? What new ‘‘The announcement on September 11, tools and rolling stock that may be types of living organisms exist in deep 2000, that the historic Homestake Gold transferable to the laboratory, and underground environments from which Mine would soon close presented a re- skilled engineers, geologists, and min- sunlight is excluded? How are heat and markable opportunity for creating a ers who know every aspect of the water transported underground over dedicated multipurpose deep under- mine.’’ long distances and long times?’’ ground laboratory in the U.S. Among This is not the first time that As Dr. Bahcall’s letter makes clear, its attributes are: Homestake, or other mines, have been the laboratory would provide an oppor- Homestake has very favorable phys- used to support this kind of research. tunity for a wide variety of important ical properties. It is the deepest mine In fact, underground scientific research research. For that reason, it is receiv- in the U.S. The rock is hard and of high at the Homestake mine dates back to ing strong support in the scientific quality: even at depth there is an ab- 1965, when a neutrino detector was in- community. For example, every six to sence of rock bursts common at sites of stalled in the underground mine at the seven years, the Nuclear Science Advi- comparable depth. Large cavities built 4850-foot level. Research from that ex- sory Board and the Nuclear Physics Di- at depths of 7400 and 8000 feet have periment is acknowledged as critical to vision of the American Physical Soci- been shown to be stable over periods of the development of neutrino astro- ety develop a Long Range Plan that a decade or more. The mine is dry, pro- physics. Similar experiments have con- identifies that the major priorities of ducing only 500 gallons/minute of water tinued in the Soudan mine in Min- American nuclear physicists for com- throughout its 600 km of drifts. nesota, and in underground labora- ing years. After a series of meetings, tories outside of the United States, Homestake has shafts that can be these scientists ranked the creation of leading to important discoveries and adapted to provide unprecedented hori- a National Underground Science Lab- developments in particle physics and zontal access. The replacement cost of oratory as one of their top priorities in theory. the Ross and Yates shafts and the No. their Long Range Plan. As I’ve stated, the purpose of the leg- In a recent letter to the National 6 winze, which access the proposed lab- islation passed by the Senate is to Science Foundation, members of the oratory site, is approximately $300 mil- allow the conveyance of the property Nuclear Science Advisory Committee lion. The shaft cross sections are un- needed for the construction of the lab- explained their support for the creation usually large, 15 x 28 feet, and the oratory from Homestake Mining Com- of an underground laboratory at Yates hoist, powered by two 1250 hp pany to the State of South Dakota. I’d Homestake: ‘‘[T]here is presently an Nordberg motors, can lift nearly 7 tons. like to take a moment to explain why outstanding opportunity for the United This makes it possible to lower cargo it is necessary for the Federal Govern- States to assume world leadership at containers directly to the underground ment to transfer the mine to the State, the frontier of underground science site. Finally, there are several existing and to indemnify the company and the through the acquisition and develop- ventilation shafts as well as an exten- State in order for this conveyance to ment by the National Science Founda- sive set of ramps that connect the lev- take place. tion of the Homestake mine in South els, providing important secondary es- The National Science Foundation, Dakota to create a deep underground cape paths. which is reviewing a $281 million pro- (7000 meter of water equivalent Homestake is a site with remarkable posal to construct this laboratory, does (m.w.e.)) laboratory.... In the last flexibility. There are drifts approxi- not operate its own research facilities. decade, fundamental progress has been mately every 150 feet in depth, allow- Instead, it provides grants to other en- made in underground experiments in ing experiments to be conducted at tities to operate facilities or to con- such diverse areas as nucleon decay, multiple levels and opening up possi- duct experiments. In keeping with this atmospheric neutrino oscillations, bilities for an unusually broad range of tradition, the proposed laboratory solar neutrino oscillations, and science. Coupled with the extensive would not be owned by the Federal searches for dark matter. These studies ventilation system—including a mas- Government, but instead would need to not only have increased our under- sive cooling plant with four York com- be operated by an entity other than the standing of the fundamental properties pressors and 2300 tons of refrigeration— NSF. Since it is not practical for the of the universe, but have pointed to this allows a wide range of experiments company to retain ownership of the new and even more challenging fron- to be mounted, including those involv- site as it is converted into a labora- tiers of compelling scientific interest. ing flammables, cryogens, or other sub- tory, Homestake expressed a willing- To explore these frontiers, the next stances best sequestered and separately ness to donate the underground mine generation of experiments (e.g. solar vented. and infrastructure to the State of neutrino, double beta decay, etc.) will The flexibility to accommodate a South Dakota, together with certain require a deep underground laboratory very wide range of science is important surface facilities, structures and equip- to reduce cosmic ray-related back- because significant advantages will ac- ment that are necessary to operate and grounds, which constitute the limiting company a single multipurpose na- support the underground mine, pro- factor for high sensitivity experiments. tional laboratory. There are economies vided that it could be released from li- A National Underground Science Lab- of scale in infrastructure and safety, abilities associated with the transfer oratory at a depth of 7000 m.w.e., at the including the development of common and the future operation of its property Homestake Mine site would constitute specialized facilities (like a low-back- as an underground laboratory. a world class facility, with a dedicated ground counting facility). This reduces Relief from liability is necessary be- infrastructure to insure [sic] U.S. lead- costs and saves human scientific cap- cause the construction of the lab will ership in underground studies well into ital. Concentration also produces a require the company to forgo certain the next century.’’ stronger scientific and technical envi- reclamation actions that it would nor- While there are two other locations ronment. It allows synergisms between mally take to limit its liability in the under consideration in the United disciplines to grow. mine. For example, in connection with States for the construction of an un- The proposed principle site of the closing the underground mine, derground laboratory, scientists have laboratory is the region at 7400 ft be- Homestake planned to remove electric stated that the Homestake Mine, be- tween the Ross and Yates shafts. The substations, decommission hoists and cause of its unique characteristics, is site is accessible now: extensive coring other equipment, turn off the pumps the best location in the country to con- studies of the site will be performed to that dewater the mine, and seal all duct this research. Dr. Wick Haxton of verify its suitability, prior to any ex- openings. Were the pumps to be turned the Institute for Nuclear Theory put penditures for major construction. off, the mine workings would slowly

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00082 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S13855 fill with water, rendering the mine un- S. 1389 also contains important provi- Homestake Mine in Lawrence County, South usable laboratory. sions to protect taxpayers from any po- Dakota and all real property, mineral and oil The Act establishes a specific proce- tential liability once the transfer of and gas rights, shafts, tunnels, structures, dure that will be followed in order for in-mine backfill, in-mine broken rock, fix- the mine takes place. First, South Da- tures, and personal property to be conveyed conveyance to take place and kota must purchase property and li- for establishment and operation of the lab- Homestake to be relieved of its liabil- ability insurance for the mine. It may oratory, as agreed upon by Homestake and ity. First, the Act does not become ef- also require individual experiments to the State. ‘‘Mine’’ is also defined to include fective unless the National Science purchase environmental insurance. any water that flows into the Mine from any Foundation selects Homestake Mine as Second, the bill requires that South source. The real and personal property that the site for a National Underground Dakota establish an Environment and is to be conveyed will be subject to further Science Laboratory. This means that Project Trust Fund to finance any fu- discussions among Homestake, the State and conveyance procedures will not begin the laboratory. The laboratory has identified ture clean-up actions that may be re- parts of the surface, real property, equip- until it is clear that the NSF supports quired. A portion of annual Operations ment, facilities and structures that will be the construction of a laboratory. Sec- and Maintenance funding must be de- necessary or useful in the operation of the ond, a due diligence inspection of the posited into the fund, and the state laboratory. Homestake will determine if the property will be conducted by an inde- may also require individual projects to identified property can be included in the pendent entity to identify any condi- make a deposit into the fund. The in- conveyance. The definition of ‘‘Mine’’ ex- tion that may pose an imminent and surance and trust fund provisions of cludes certain features, including the ‘‘Open substantial endangerment to public this bill will help to provide a firewall Cut,’’ the tailings storage facility and exist- health or the environment. Third, any ing waste rock dumps. These are not part of between the taxpayers and any future the ‘‘Mine’’ and cannot be conveyed under condition of the mine that meets those environmental clean-up that may be the Act. Homestake remains responsible for criteria must be corrected before con- required. reclamation and closure of all property that veyance takes place. Homestake may I want to thank all of those who have is not conveyed under this Act. choose to contribute toward any nec- been involved in the development of Section 104. Conveyance of Real Property. essary response actions. However, Sec- this legislation. I particularly appre- The bill establishes several requirements as tion 4 of this Act includes a provision ciate the hard work and support of conditions for conveyance. Once conveyance that limits Homestake’s contribution is approved, the mine is transferred to the Governor Bill Janklow of South Da- state ‘‘as-is’’ via a quit-claim deed. to this additional work, if necessary, to kota. I also want to thank my col- Inspection. Prior to the conveyance, the $75 million, reduced by the value of the league, Senator JOHNSON, a cosponsor Act provides for a due diligence inspection to property and equipment that of this bill, for all of his work, particu- be conducted by an independent entity. The Homestake is donating. In addition, larly to secure the $10 million in tran- independent entity is to be selected jointly the State, or another person, may also sition funds that will bridge the gap be- by the Administrator of the EPA, the South assist with that action. Only after the tween Homestake’s closure and the es- Dakota Department of Environment and Natural Resources and Homestake. In con- administration of the Environmental tablishment of the laboratory. And, I Protection Agency has certified that sultation with the State and Homestake, the would like to thank officials from Administrator of the EPA will determine the necessary steps have been taken to cor- Homestake and Barrick. methodology and standards to be used in the rect any problems that are identified This legislation will provide an op- inspection, including the conduct of the in- can the conveyance proceed. portunity for the United States to con- spection, the scope of the inspection and the Since some of the steps required to duct scientific research and will pro- time and duration of the inspection. The pur- convert the mine into a laboratory go vide important new educational and pose of the inspection is to determine wheth- above and beyond normal reclamation, economic opportunities for South Da- er there is any condition in the Mine that the company is not obligated to deliver kota. I thank my colleagues in Con- may pose an imminent and substantial the property in a condition that is suit- endangerment to public health or the envi- gress for their support of this bill. ronment. The inspection will not attempt to able for use as a laboratory. However, I ask unanimous consent that both a document all environmental conditions at those portions of the mine that require letter from the Nuclear Science Advi- the Mine, and will not inspect or evaluate the most significant reclamation, in- sory Committee to the National any environmental conditions on property cluding the tailings pond and waste Science Foundation and a section-by- that is not part of the conveyance. rock dumps, are specifically prohibited section analysis of the bill be printed Report. After conducting the inspection, the independent entity must prepare a draft from being conveyed under this Act in the RECORD. and will remain Homestake’s responsi- There being no objection, the mate- report on its findings that describes the re- bility to reclaim. sults of its inspection and identifies any con- rial was ordered to be printed in the dition of or in the mine that may pose an im- Under normal circumstances, the RECORD, as follows: minent and substantial endangerment to mine would close in March of 2002. FISCAL YEAR 2002 DEPARTMENT OF DEFENSE public health or the environment. Since it must be kept open beyond that APPROPRIATIONS CONFERENCE REPORT This draft report must be submitted to the date to leave open the option to con- DIVISION E—MISCELLANEOUS PROVISIONS EPA and made available to the public. A public notice must be issued requesting pub- struct the laboratory, Congress has al- Title I—Homestake Mine Conveyance lic comments on the draft within 45 days. ready appropriated $10 million in the Section-by-Section Analysis VA-HUD Appropriations bill to pay for During the 45-day comment period, the inde- Section 101. Short Title. Names bill as expenses needed for that purpose. pendent entity shall hold at least one public ‘‘Homestake Mine Conveyance Act of 2001.’’ hearing in Lead, South Dakota. After these It is important that all aspects of the Section 102. Findings. States that steps are taken, the independent entity must conveyance process be completed in a Homestake Mine has been selected by a com- submit a final report that responds to public timely fashion. To facilitate the con- mittee of scientists as the preferred location comments and incorporates necessary struction of the laboratory, the inspec- for a National Underground Science Labora- changes. tions, reports and conveyance will need tory. While Homestake Mining Company is Review to Report. Not later than 60 days to proceed in phases, with the inspec- willing to transfer the mine to the State of after receiving the report, the EPA shall re- tions being initiated after Homestake South Dakota, both must be indemnified view it and notify the state of its acceptance against future liability in order to do so. has completed the reclamation work or rejection of the report. The Administrator Section 103. Definitions. Defines the fol- may reject the report if one or more condi- that may otherwise have been required. lowing terms: Administrator, Affiliate, Con- tions are identified that may pose an immi- While the Act sets no specific deadline veyance, Fund, Homestake, Independent En- nent and substantial endangerment to public for the completion of these procedures, tity, Laboratory, Mine, Person, Project health or the environment and require re- it is important that the entire process Sponsor, Scientific Advisory Board and sponse action before conveyance and assump- be completed in no more than eight State. tion by the Federal Government of liability months from the date of passage of the The term ‘‘Mine’’ refers to the property to for the mine. The Administrator may also Act. The timeframes in the Act for be conveyed from Homestake to South Da- reject the report if the conveyance is deter- kota pursuant to the Act. This property con- mined to be against the public interest. public comment on draft reports and sists of only a portion of Homestake’s prop- Response Action. If the independent enti- on EPA’s review of the report are in- erty in Lawrence County, South Dakota. The ty’s report identifies no conditions that may tended to emphasize the need for time- ‘‘Mine’’ is defined to include the under- pose an imminent and substantial threat to ly action. ground workings and infrastructure at the human health or the environment, and EPA

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00083 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S13856 CONGRESSIONAL RECORD — SENATE December 20, 2001 accepts the report, then the conveyance may environmental claims to the extent that re- Interest. All interest earned by the Fund is proceed. If the report identifies a condition sponse costs would be awarded in a civil ac- retained within the Fund. in the Mine that may pose an imminent and tion brought under the Federal Water Pollu- Other funds. Other funds may be received substantial endangerment to public health tion Control Act, the Solid Waste Disposal and deposited in the Fund at the discretion or the environment, then Homestake may, Act, the Comprehensive Environmental Re- of the state. but is not obligated to, carry out or permit sponse, Compensation, and Liability Act of Expenditures from Fund. Funds within the the State or other persons to carry out a re- 1980 or any other Federal environmental law. Trust Fund may only be spent for the fol- sponse action to correct the condition. If the In addition, claims for damages must be lowing purposes: waste and hazardous sub- condition is one that requires a continuing made in accordance with the Federal Tort stance removal or remediation, or other en- response action, or a response action that Claims Act. vironmental cleanup; removal of equipment may only be completed as part of the final Exceptions. Homestake is not relieved of and material no longer used or necessary for closure of the laboratory, then Homestake, liability for workers compensation or other use with a project or a claim association the State or other persons must make a de- employment-related claims, non-environ- with that project; purchases of insurance by posit into the Environment and Project mental claims that occur prior to convey- the State (except for employment related in- Trust Fund established in Section 7 that is ance, any criminal liability, or any liability surance; payments for other costs related to sufficient to pay the costs of that response for property not transferred, unless that liability; and the closure of the mine. action. The amount of the deposit is to be property is affected by the operation of the Federal Authority. To the extent the determined by the independent entity, on a lab. United States is liable, it may direct that net present value basis and taking into ac- Section 107. Insurance Coverage amounts in the Trust Fund be applied to- count interest that may be earned on the de- Requirement to Purchase Insurance for ward costs it incurs. Section 109. Waste Rock Mixing. If the posit until the time that expenditure is ex- mine. To the extent such insurance is avail- State, acting in its capacity overseeing the pected to be made. Homestake may choose to able, the state shall purchase property and laboratory, determines to dispose of waste contribute toward the response actions. liability insurance for the mine and the oper- rock excavated for the construction of the However, Section 4 includes a provision that ation of the laboratory to provide coverage laboratory on land owned by Homestake that limits Homestake’s contribution to this ad- against the liability assumed by the United is not conveyed under this legislation, then ditional work, if necessary, to $75 million, States. The requirement to purchase insur- the State must first receive approval from reduced by the value of the property and ance will terminate if the mine ceases to be the Administrator before disposing such equipment that Homestake is donating. used as a laboratory or Operations and Main- rock. Funds deposited into the Fund to meet this tenance funding is not sufficient to operate Section 110. Requirements for Operation of requirement may only be expended to ad- the laboratory. Laboratory. The laboratory must comply dress the needs identified in the inspection. Terms of Insurance. The state must peri- with all federal laws, including environ- Once any necessary response actions have odically consult with the EPA and the Sci- mental laws. been completed, or necessary funds have entific Advisory Board and consider the fol- Section 111. Contingency. This Act shall be been deposited, then the independent entity lowing factors to determine the coverage, effective contingent upon the selection of may certify to the EPA that the conditions type and policy limits of insurance: the na- the Mine by the National Science Founda- identified in the report that may pose an im- ture of projects in the laboratory, the cost tion as the site for the laboratory. minent and substantial threat to human and availability of commercial insurance, Section 112. Obligation in the Event of health or the environment have been cor- and the amount of available funding. The in- Nonconveyance. If the conveyance does not rected. surance shall be secondary to insurance pur- occur, then Homestake’s obligations to re- Final Review. Not later than 60 days after chased by sponsors of individual projects, claim the mine are limited to the require- receiving the certification, the EPA must and in excess of amounts available in the ments of current law. make a final decision to accept or reject the Fund to pay any claim. The United States Section 113. Payment and Reimbursement certification. Conveyance may proceed only shall be an additional insured and will have of Costs. The United States may seek pay- if the EPA accepts the certification. the right to enforce the policy. ment from the Fund or insurance as reim- Section 105. Assessment of Property. Sec- Funding of insurance purchase. The state bursement for costs it incurs as the result of tion 5 sets forth the process for valuing the may finance the purchase of insurance with the liability it has undertaken. donated property and services. For purposes funds from the Fund or other funds available Section 114. Consent Decrees. Nothing in of determining the amount of Homestake’s to the state, but may not be compelled to this title affects the obligation of a party to potential contribution toward response ac- use state funds for this purpose. two existing consent decrees. tions identified in Section 4(b)(4)(C), the Porject insurance. In consultation with the Section 115. Offset. Offset for title. property being donated by Homestake is to EPA and the Scientific Advisory Board, the Section 116. Authorization of appropria- be valued by the independent entity accord- State may require a project sponsor to pur- tions. Such funds as are necessary to carry ing to the Uniform Appraisal Standards for chase property and liability insurance for a out the Act are authorized. Federal Land Acquisition. To the extent that project. The United States shall be an addi- The PRESIDING OFFICER. The ma- some property, such as underground tunnels, tional insured on the policy and have the jority leader. only has value for the purpose of con- right to enforce it. f structing a laboratory, that entity is di- State insurance. The State shall purchase rected to include the estimated costs of re- unemployment compensation insurance and UNANIMOUS CONSENT placing the facilities in the absence of worker’s compensation insurance required AGREEMENT—H.R. 2884 Homestake’s donation, and the cost of re- under state law. The State may not use Mr. DASCHLE. Mr. President, there placing any donated equipment. The valu- funds from the Fund for this purpose. is a matter that has some urgency as- ation is to be submitted to the Adminis- Section 108. Environment and Project trator of the EPA, the state and Homestake Trust Fund sociated with it only because I know in a separate report that is not subject to the Establishment of fund. On completion of the House is waiting to receive the lan- procedures in Section 4(b). If it is determined conveyance, the State shall establish an en- guage. So in the interest of expediting that the conveyance can most efficiently be vironment and Project Trust Fund in an in- consideration of this particular piece processed in several phases, then the valu- terest-bearing account within the state. of legislation, I now ask unanimous ation report is to accompany each of the due Capitalization of Fund. There are several consent that the Chair lay before the diligence reports. streams of money that will capitalize the Senate a message from the House on Section 106. Liability fund, some of which have restrictions on the H.R. 2884, that the Senate concur in the Assumption of liability. Upon conveyance, way they may be spent. the United States shall assume liability for Annual Portion of Operation and Mainte- amendment of the House with a further the mine and laboratory. This liability in- nance Spending. A portion of annual O&M amendment which is at the desk. cludes damages, reclamation, cleanup of haz- funding determined by the State in consulta- The PRESIDING OFFICER. Is there ardous substances under CERCLA, and clo- tion with the EPA and the Scientific Advi- objection? sure of the facility. If property transfer sory Board shall be deposited in the Fund. Mr. MCCAIN. Reserving the right to takes place in steps, then the assumption of To determine the annual amount, the State object, what is 2884? liability shall occur with each transfer for must consider the nature of the projects in Mr. DASCHLE. Mr. President, 2884 is those properties. the facility, the available amounts in the the Victims Relief Fund, the legisla- Liability protection. Upon conveyance, Fund, any pending costs or claims, and the tion dealing with victims of terrorism. neither Homestake nor the State of South amount of funding required for future ac- Mr. GRAMM. What is the amend- Dakota shall be liable for the mine or labora- tions to close the facility. tory. The United States shall waive sov- Project Fee. The state, in consultation ment, Mr. President? ereign immunity for claims by Homestake with NSF and EPA, shall require each Mr. DASCHLE. I yield to the Senator and the State, assume this liability and in- project to pay an amount into the Fund. from New Jersey. demnify Homestake against it. However, in These funds may only be used to remove Mr. TORRICELLI. I thank the major- the case of any claim against the United projects from the lab or to pay claims associ- ity leader for yielding. When the Sen- States, it is only liable for response costs for ated with those projects. ate unanimously passed this legislation

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00084 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S13857 previously, we included waiving in- think the Senator from Montana is I am hopeful that when we come back come taxes and payroll taxes for fami- correct in his observations that there in January, the package that has been lies of the victims of September 11. The is still a great deal more to be done. I agreed to and worked on by the chair- House of Representatives in their bill will work with him to see that that man of the Ways and Means Committee included only income taxes and not happens. and many of his people, Senator BAU- payroll taxes. Mr. BAUCUS. Mr. President, I thank CUS, Senator GRASSLEY, Senator CLIN- When the House repassed the bill and my good friend from South Dakota. I TON, and myself will serve as a basis for sent it to us, they included a provision add that this bill is very necessary to bringing something up quickly then. that did not include payroll taxes but the victims relief bill, as it was re- We had hoped to get something now. set a minimum of $10,000 so lower in- ported to the Committee on Finance. I We have come really close—close but come people would receive some tax re- will not belabor it by going through no cigar, they say. We are going to try fund. The House wanted to retain the the provisions. According to the rules, to gain that cigar as soon as we come principle of not waiving payroll taxes there is not time to do so. Suffice to back. But make no mistake about it, but did want to give some refund to say, this bill must pass in the next sev- we will be back. We very much need low-income families. This was seen as eral hours because it will give much- the help, and we appreciate agreeable to both sides and fair. needed relief. I thank my friend. everybody’s cooperation to help us get Mr. GRAMM. Mr. President, further Mr. SCHUMER. Mr. President, re- there. reserving the right to object, it is my serving the right to object, and I will Mr. LOTT. Has the unanimous con- understanding there were additional not object, I would like to just say that sent request been agreed to? provisions such as extended unemploy- some of the provisions that are not in Mr. SCHUMER. I withdraw my objec- ment, provisions of that nature. Are this bill—first, the victims relief part tion. The PRESIDING OFFICER. Is there they in this bill? of the bill is very necessary. We did not objection? Let me suggest the absence of a want to stand in the way of that. Origi- Mr. ALLEN. Reserving the right to quorum so we could look at that. nally, when the victims relief bill came object. The PRESIDING OFFICER. The ma- over to the House, it had provisions to The PRESIDING OFFICER. The Sen- jority leader has the floor. benefit Lower Manhattan. We all know ator from Virginia. Mr. DASCHLE. Mr. President, I sug- that Lower Manhattan is in real trou- Mr. ALLEN. Mr. President, I say to gest the absence of a quorum. ble because of what happened on Sep- the Members, this final victims pack- The PRESIDING OFFICER. The tember 11. The great fear is that busi- age is a good package. I earlier intro- clerk will call the roll. nesses, large and small, will leave. The duced a measure to make sure we in- The assistant legislative clerk pro- fear factor is enormous. cluded the provisions of S. 1433,which is ceeded to call the roll. Over on the House side, the chairman supported by Senator WARNER, Senator Mr. DASCHLE. Mr. President, I ask of the Ways and Means Committee CAMPBELL, and Senator CRAIG. I am unanimous consent that the order for worked out a package that would help glad these ideas have been recognized, the quorum call be rescinded. bring some relief. On this side, Senator that this war we are fighting is against The PRESIDING OFFICER. Without CLINTON and I worked out a package terrorists who target defenseless men, objection, it is so ordered. that had tremendous support in our women, and children. The areas in Mr. DASCHLE. Mr. President, I have version of the stimulus bill from the which these attacks occur are combat a unanimous consent request that is majority leader, as well as the chair- zones. pending. man of the Finance Committee. We had I am glad this package has been The PRESIDING OFFICER. Is there spent a great deal of time after it worked out, because the last thing the objection to the request? looked as though the stimulus bill was families of these victims need to be Mr. BAUCUS. Reserving the right to not going to happen, starting yester- worrying about is paying taxes, wheth- object, is this the victims relief bill, I day, and finishing about an hour and a er income taxes or other types of ask the majority leader? half ago, trying to come to a com- taxes—this bill addresses those con- Mr. DASCHLE. I answer to the Sen- promise between the House version and cerns. ator from Montana it is the victims re- the Senate version. While my colleague from New York lief bill. The chairman of the Ways and Means may want to add some other items to Mr. BAUCUS. Reserving the right to Committee in the other body and our this measure—but at this late hour will object, and I shall not object, there is staffs worked long and hard to come up not—I commend to my colleagues the a disaster in the State of Montana and with the compromise we have come up fact that the police officers and fire- other higher plain States, which is a with. There are a few changes here and fighters who first responded to the drought. I have been seeking agricul- there that he might like, I might like, World Trade Center attacks, as well as tural disaster assistance. I see that is and Senator CLINTON might like, and the Pentagon, risked their lives in haz- not going to happen. I ask my friend others in New York might like, but we ardous conditions, breathing toxic from South Dakota if he can assure me did come to an agreement. Unfortu- gases, to save the lives of their fellow that at the first opportunity next year nately, the agreement we came to was citizens. we will take up and consider the agri- not able to be reviewed by the Senators In my view, those who are serving in cultural disaster assistance bill. in this body. We just came up with it those terrorist attack zones ought to Mr. DASCHLE. Mr. President, I com- about an hour, hour and a half ago. be looked upon as the same as those mend the Senator from Montana for Unfortunately, because time is late who work in combat zones, and the his efforts over the course of the last and because the victims package has taxes of those first responders for that several months. I have been impressing achieved that agreement, we will not month ought not be subject to income the Senate to act on disaster relief. stand in the way and object to remov- taxes. I am going to work next year to Many farmers in South Dakota share ing the New York part from the bill get this proper recognition for our fire- this problem, and I have applauded the and bringing up this other bill. fighters, law enforcement officers, and efforts made by the Senator from Mon- But I say this to my colleagues: We rescue personnel, but I do not want to tana. I appreciate his interest and his have a tremendous problem in down- hold up this good victims’ relief pack- determination to see that it adequately town Manhattan. We are getting FEMA age which means a good deal to a lot of responds to the Great Plains, the Mid- relief, and it is working well. The Sen- families who feel a very big hole in west, and elsewhere. ator from West Virginia has helped us their hearts during this holiday season. I assure the Senator from Montana in other areas. But tax relief to compa- I yield the floor. that at the first appropriate oppor- nies, big and small, to individuals, to The PRESIDING OFFICER. Is there tunity we will find a way to address nonprofits that don’t have space right objection? the legislation and find a way in which now, or that have space but are won- Mr. NICKLES. Reserving the right to to respond. As he recalls, we did some dering whether they can stay in Lower object, and I shall not object. of that last summer. We had a good de- Manhattan, is vital to New York’s re- The PRESIDING OFFICER. The Sen- bate about how much was necessary. I blooming quickly. ator from Oklahoma.

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00085 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S13858 CONGRESSIONAL RECORD — SENATE December 20, 2001 Mr. NICKLES. Mr. President, I thank SECTION 1. SHORT TITLE; ETC. (b) CONFORMING AMENDMENTS.— my colleague, Senator ALLEN, for his (a) SHORT TITLE.—This Act may be cited as (1) Section 5(b)(1) is amended by inserting comments. I also thank my colleague, the ‘‘Victims of Terrorism Tax Relief Act of ‘‘and victims of certain terrorist attacks’’ before 2001’’. ‘‘on death’’. Senator TORRICELLI, for his work and (b) AMENDMENT OF 1986 CODE.—Except as oth- (2) Section 6013(f)(2)(B) is amended by insert- the work we did in the Finance Com- erwise expressly provided, whenever in this Act ing ‘‘and victims of certain terrorist attacks’’ be- mittee. We also included the victims an amendment or repeal is expressed in terms of fore ‘‘on death’’. from the Oklahoma City bombing dis- an amendment to, or repeal of, a section or (c) CLERICAL AMENDMENTS.— aster 6 years ago in which 189 people other provision, the reference shall be consid- (1) The heading of section 692 is amended to lost their lives. Likewise, they should ered to be made to a section or other provision read as follows: not have to pay taxes for that year or of the Internal Revenue Code of 1986. ‘‘SEC. 692. INCOME TAXES OF MEMBERS OF ARMED FORCES AND VICTIMS OF the preceding year. The amount of in- (c) TABLE OF CONTENTS.—The table of con- tents for this Act is as follows: CERTAIN TERRORIST ATTACKS ON come is almost de minimis, but it is DEATH.’’. only fair. Sec. 1. Short title; etc. (2) The item relating to section 692 in the table I thank my colleagues from New TITLE I—RELIEF PROVISIONS FOR of sections for part II of subchapter J of chapter York and New Jersey for their coopera- VICTIMS OF TERRORIST ATTACKS 1 is amended to read as follows: tion. My colleagues from New York had Sec. 101. Income taxes of victims of terrorist at- ‘‘Sec. 692. Income taxes of members of Armed many additional, very interesting tacks. Forces and victims of certain ter- Sec. 102. Exclusion of certain death benefits. rorist attacks on death.’’. items—accelerated depreciation and Sec. 103. Estate tax reduction. other ideas to stimulate the economy. Sec. 104. Payments by charitable organizations (d) EFFECTIVE DATE; WAIVER OF LIMITA- We are happy to work with them to try treated as exempt payments. TIONS.— (1) EFFECTIVE DATE.—The amendments made to make that happen in the near fu- TITLE II—OTHER RELIEF PROVISIONS by this section shall apply to taxable years end- ture. Sec. 201. Exclusion for disaster relief payments. ing before, on, or after September 11, 2001. I thank my colleagues for their sup- Sec. 202. Authority to postpone certain dead- (2) WAIVER OF LIMITATIONS.—If refund or port, and I shall not object. lines and required actions. credit of any overpayment of tax resulting from The PRESIDING OFFICER. Is there Sec. 203. Application of certain provisions to the amendments made by this section is pre- objection? terroristic or military actions. vented at any time before the close of the 1-year If there is no objection, without ob- Sec. 204. Clarification of due date for airline ex- period beginning on the date of the enactment jection, it is so ordered. cise tax deposits. of this Act by the operation of any law or rule The majority leader. Sec. 205. Treatment of certain structured settle- of law (including res judicata), such refund or ment payments. Mr. DASCHLE. Mr. President, I ask credit may nevertheless be made or allowed if Sec. 206. Personal exemption deduction for cer- claim therefor is filed before the close of such unanimous consent that the vote on tain disability trusts. the conference report to accompany period. TITLE III—TAX BENEFITS FOR AREA OF SEC. 102. EXCLUSION OF CERTAIN DEATH BENE- H.R. 3338 occur immediately following NEW YORK CITY DAMAGED IN TER- FITS. the remarks made by the senior Sen- RORIST ATTACKS ON SEPTEMBER 11, 2001 (a) IN GENERAL.—Section 101 (relating to cer- ator from West Virginia. Sec. 301. Tax benefits for area of New York City tain death benefits) is amended by adding at the The PRESIDING OFFICER. Without damaged in terrorist attacks on end the following new subsection: objection, it is so ordered. September 11, 2001. ‘‘(i) CERTAIN EMPLOYEE DEATH BENEFITS PAY- Mr. TORRICELLI. Will the majority TITLE IV—DISCLOSURE OF TAX INFORMA- ABLE BY REASON OF DEATH OF CERTAIN TER- leader yield? TION IN TERRORISM AND NATIONAL SE- RORIST VICTIMS.— ‘‘(1) IN GENERAL.—Gross income does not in- The PRESIDING OFFICER. Is objec- CURITY INVESTIGATIONS tion heard? clude amounts (whether in a single sum or oth- Sec. 401. Disclosure of tax information in ter- erwise) paid by an employer by reason of the Mr. LOTT. Mr. President, I seek rec- rorism and national security in- death of an employee who is a specified terrorist ognition, but in view of what we have vestigations. victim (as defined in section 692(d)(2)). just agreed to, I know the Senator TITLE V—NO IMPACT ON SOCIAL ‘‘(2) LIMITATION.—Subject to such rules as the from New Jersey wants to be heard. I SECURITY TRUST FUNDS Secretary may prescribe, paragraph (1) shall not yield the floor to him. Sec. 501. No impact on social security trust apply to amounts which would have been pay- Mr. TORRICELLI. Mr. President, I funds. able if the individual had died other than as a thank the Republican leader for his TITLE I—RELIEF PROVISIONS FOR specified terrorist victim (as so defined). ‘‘(3) TREATMENT OF SELF-EMPLOYED INDIVID- courtesy. I want to say a word of VICTIMS OF TERRORIST ATTACKS UALS.—For purposes of paragraph (1), the term thanks to all of my colleagues. I was SEC. 101. INCOME TAXES OF VICTIMS OF TER- ‘employee’ includes a self-employed individual proud to have offered this provision in RORIST ATTACKS. (as defined in section 401(c)(1)).’’. the Finance Committee and again on (a) IN GENERAL.—Section 692 (relating to in- (b) EFFECTIVE DATE; WAIVER OF LIMITA- the Senate floor. come taxes of members of Armed Forces on TIONS.— The PRESIDING OFFICER. The death) is amended by adding at the end the fol- (1) EFFECTIVE DATE.—The amendment made Chair needs to ascertain if there is ob- lowing new subsection: by this section shall apply to taxable years end- ‘‘(d) INDIVIDUALS DYING AS A RESULT OF CER- jection to the preceding unanimous ing before, on, or after September 11, 2001. TAIN ATTACKS.— (2) WAIVER OF LIMITATIONS.—If refund or consent request. ‘‘(1) IN GENERAL.—In the case of a specified credit of any overpayment of tax resulting from Mr. MCCAIN. I withdraw my objec- terrorist victim, any tax imposed by this chapter the amendments made by this section is pre- tion. shall not apply— vented at any time before the close of the 1-year The PRESIDING OFFICER. The ob- ‘‘(A) with respect to the taxable year in which period beginning on the date of the enactment jection is withdrawn. Without objec- falls the date of death, and of this Act by the operation of any law or rule tion, it is so ordered. ‘‘(B) with respect to any prior taxable year in of law (including res judicata), such refund or The Chair laid before the Senate a the period beginning with the last taxable year credit may nevertheless be made or allowed if ending before the taxable year in which the claim therefor is filed before the close of such message from the House, as follows: wounds, injury, or illness referred to in para- The PRESIDING OFFICER laid be- period. graph (2) were incurred. SEC. 103. ESTATE TAX REDUCTION. fore the Senate the following message ‘‘(2) SPECIFIED TERRORIST VICTIM.—For pur- (a) IN GENERAL.—Section 2201 is amended to from the House of Representatives: poses of this subsection, the term ‘specified ter- read as follows: Resolved, That the House agree to the rorist victim’ means any decedent— ‘‘(A) who dies as a result of wounds or injury ‘‘SEC. 2201. COMBAT ZONE-RELATED DEATHS OF amendments of the Senate to the bill MEMBERS OF THE ARMED FORCES incurred as a result of the terrorist attacks (H.R. 2884) entitled ‘‘An Act to amend AND DEATHS OF VICTIMS OF CER- against the United States on April 19, 1995, or TAIN TERRORIST ATTACKS. the Internal Revenue Code of 1986 to September 11, 2001, or provide tax relief for victims of the ter- ‘‘(a) IN GENERAL.—Unless the executor elects ‘‘(B) who dies as a result of illness incurred as not to have this section apply, in applying sec- rorist attacks against the United a result of an attack involving anthrax occur- tions 2001 and 2101 to the estate of a qualified States on September 11, 2001’’, with the ring on or after September 11, 2001, and before decedent, the rate schedule set forth in sub- following House amendment to senate January 1, 2002. section (c) shall be deemed to be the rate sched- amendments: Such term shall not include any individual ule set forth in section 2001(c). In lieu of the matter proposed to be in- identified by the Attorney General to have been ‘‘(b) QUALIFIED DECEDENT.—For purposes of serted by the Senate amendment to the text a participant or conspirator in any such attack this section, the term ‘qualified decedent’ of the bill, insert the following: or a representative of such an individual.’’. means—

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‘‘(1) any citizen or resident of the United (d) EFFECTIVE DATE; WAIVER OF LIMITA- ‘‘(c) QUALIFIED DISASTER DEFINED.—For pur- States dying while in active service of the Armed TIONS.— poses of this section, the term ‘qualified disaster’ Forces of the United States, if such decedent— (1) EFFECTIVE DATE.—The amendments made means— ‘‘(A) was killed in action while serving in a by this section shall apply to estates of dece- ‘‘(1) a disaster which results from a terroristic combat zone, as determined under section 112(c), dents— or military action (as defined in section or (A) dying on or after September 11, 2001, and 692(c)(2)), ‘‘(B) died as a result of wounds, disease, or (B) in the case of individuals dying as a result ‘‘(2) a Presidentially declared disaster (as de- injury suffered while serving in a combat zone of the April 19, 1995, terrorist attack, dying on fined in section 1033(h)(3)), (as determined under section 112(c)), and while or after April 19, 1995. ‘‘(3) a disaster which results from an accident in the line of duty, by reason of a hazard to (2) WAIVER OF LIMITATIONS.—If refund or involving a common carrier, or from any other which such decedent was subjected as an inci- credit of any overpayment of tax resulting from event, which is determined by the Secretary to dent of such service, and the amendments made by this section is pre- be of a catastrophic nature, or ‘‘(2) any specified terrorist victim (as defined vented at any time before the close of the 1-year ‘‘(4) with respect to amounts described in sub- in section 692(d)(2)). period beginning on the date of the enactment section (b)(4), a disaster which is determined by ‘‘(c) RATE SCHEDULE.— of this Act by the operation of any law or rule an applicable Federal, State, or local authority ‘‘If the amount with re- The tentative tax is: of law (including res judicata), such refund or (as determined by the Secretary) to warrant as- spect to which the credit may nevertheless be made or allowed if sistance from the Federal, State, or local govern- tentative tax to be claim therefor is filed before the close of such ment or agency or instrumentality thereof. computed is: period. ‘‘(d) COORDINATION WITH EMPLOYMENT Not over $150,000 ...... 1 percent of the amount by TAXES.—For purposes of chapter 2 and subtitle which such amount ex- SEC. 104. PAYMENTS BY CHARITABLE ORGANIZA- ceeds $100,000. TIONS TREATED AS EXEMPT PAY- C, a qualified disaster relief payment shall not Over $150,000 but not over $500 plus 2 percent of the MENTS. be treated as net earnings from self-employment, $200,000. excess over $150,000. (a) IN GENERAL.—For purposes of the Internal wages, or compensation subject to tax. Over $200,000 but not over $1,500 plus 3 percent of the Revenue Code of 1986— ‘‘(e) NO RELIEF FOR CERTAIN INDIVIDUALS.— $300,000. excess over $200,000. (1) payments made by an organization de- Subsections (a) and (f) shall not apply with re- Over $300,000 but not over $4,500 plus 4 percent of the $500,000. excess over $300,000. scribed in section 501(c)(3) of such Code by rea- spect to any individual identified by the Attor- Over $500,000 but not over $12,500 plus 5 percent of son of the death, injury, wounding, or illness of ney General to have been a participant or con- $700,000. the excess over $500,000. an individual incurred as the result of the ter- spirator in a terroristic action (as so defined), or Over $700,000 but not over $22,500 plus 6 percent of rorist attacks against the United States on Sep- a representative of such individual. $900,000. the excess over $700,000. tember 11, 2001, or an attack involving anthrax ‘‘(f) EXCLUSION OF CERTAIN ADDITIONAL PAY- Over $900,000 but not over $34,500 plus 7 percent of $1,100,000. the excess over $900,000. occurring on or after September 11, 2001, and be- MENTS.—Gross income shall not include any Over $1,100,000 but not $48,500 plus 8 percent of fore January 1, 2002, shall be treated as related amount received as payment under section 406 over $1,600,000. the excess over to the purpose or function constituting the basis of the Air Transportation Safety and System $1,100,000. for such organization’s exemption under section Stabilization Act.’’ Over $1,600,000 but not $88,500 plus 9 percent of 501 of such Code if such payments are made— (b) CONFORMING AMENDMENTS.—The table of over $2,100,000. the excess over (A) in good faith using a reasonable and ob- sections for part III of subchapter B of chapter $1,600,000. Over $2,100,000 but not $133,500 plus 10 percent of jective formula which is consistently applied, 1 is amended by striking the item relating to sec- over $2,600,000. the excess over and tion 139 and inserting the following new items: (B) in furtherance of public rather than pri- $2,100,000. ‘‘Sec. 139. Disaster relief payments. Over $2,600,000 but not $183,500 plus 11 percent of vate purposes, and over $3,100,000. the excess over (2) in the case of a private foundation (as de- ‘‘Sec. 140. Cross references to other Acts.’’. $2,600,000. Over $3,100,000 but not $238,500 plus 12 percent of fined in section 509 of such Code), any payment (c) EFFECTIVE DATE.—The amendments made over $3,600,000. the excess over described in paragraph (1) shall not be treated by this section shall apply to taxable years end- $3,100,000. as made to a disqualified person for purposes of ing on or after September 11, 2001. Over $3,600,000 but not $298,500 plus 13 percent of section 4941 of such Code. SEC. 202. AUTHORITY TO POSTPONE CERTAIN over $4,100,000. the excess over (b) EFFECTIVE DATE.—This section shall apply DEADLINES AND REQUIRED AC- $3,600,000. to payments made on or after September 11, TIONS. Over $4,100,000 but not $363,500 plus 14 percent of over $5,100,000. the excess over 2001. (a) EXPANSION OF AUTHORITY RELATING TO $4,100,000. TITLE II—OTHER RELIEF PROVISIONS DISASTERS AND TERRORISTIC OR MILITARY AC- Over $5,100,000 but not $503,500 plus 15 percent of TIONS.—Section 7508A is amended to read as fol- SEC. 201. EXCLUSION FOR DISASTER RELIEF PAY- over $6,100,000. the excess over MENTS. lows: $5,100,000. Over $6,100,000 but not $653,500 plus 16 percent of (a) IN GENERAL.—Part III of subchapter B of ‘‘SEC. 7508A. AUTHORITY TO POSTPONE CERTAIN over $7,100,000. the excess over chapter 1 (relating to items specifically excluded DEADLINES BY REASON OF PRESI- $6,100,000. from gross income) is amended by redesignating DENTIALLY DECLARED DISASTER OR Over $7,100,000 but not $813,500 plus 17 percent of TERRORISTIC OR MILITARY AC- section 139 as section 140 and inserting after sec- TIONS. over $8,100,000. the excess over tion 138 the following new section: $7,100,000. ‘‘(a) IN GENERAL.—In the case of a taxpayer Over $8,100,000 but not $983,500 plus 18 percent of ‘‘SEC. 139. DISASTER RELIEF PAYMENTS. determined by the Secretary to be affected by a over $9,100,000. the excess over ‘‘(a) GENERAL RULE.—Gross income shall not Presidentially declared disaster (as defined in $8,100,000. include any amount received by an individual section 1033(h)(3)) or a terroristic or military ac- Over $9,100,000 but not $1,163,500 plus 19 percent as a qualified disaster relief payment. over $10,100,000. of the excess over tion (as defined in section 692(c)(2)), the Sec- ‘‘(b) QUALIFIED DISASTER RELIEF PAYMENT $9,100,000. retary may specify a period of up to one year Over $10,100,000 ...... $1,353,500 plus 20 percent DEFINED.—For purposes of this section, the term that may be disregarded in determining, under of the excess over ‘qualified disaster relief payment’ means any the internal revenue laws, in respect of any tax $10,100,000. amount paid to or for the benefit of an indi- liability of such taxpayer— ‘‘(d) DETERMINATION OF UNIFIED CREDIT.—In vidual— ‘‘(1) whether any of the acts described in the case of an estate to which this section ap- ‘‘(1) to reimburse or pay reasonable and nec- paragraph (1) of section 7508(a) were performed plies, subsection (a) shall not apply in deter- essary personal, family, living, or funeral ex- within the time prescribed therefor (determined mining the credit under section 2010.’’. penses incurred as a result of a qualified dis- without regard to extension under any other (b) CONFORMING AMENDMENTS.— aster, provision of this subtitle for periods after the (1) Section 2011 is amended by striking sub- ‘‘(2) to reimburse or pay reasonable and nec- date (determined by the Secretary) of such dis- section (d) and by redesignating subsections (e), essary expenses incurred for the repair or reha- aster or action), (f), and (g) as subsections (d), (e), and (f), re- bilitation of a personal residence or repair or re- ‘‘(2) the amount of any interest, penalty, ad- spectively. placement of its contents to the extent that the ditional amount, or addition to the tax for peri- (2) Section 2053(d)(3)(B) is amended by strik- need for such repair, rehabilitation, or replace- ods after such date, and ing ‘‘section 2011(e)’’ and inserting ‘‘section ment is attributable to a qualified disaster, ‘‘(3) the amount of any credit or refund. 2011(d)’’. ‘‘(3) by a person engaged in the furnishing or ‘‘(b) SPECIAL RULES REGARDING PENSIONS, (3) Paragraph (9) of section 532(c) of the Eco- sale of transportation as a common carrier by ETC.—In the case of a pension or other employee nomic Growth and Tax Relief Reconciliation Act reason of the death or personal physical injuries benefit plan, or any sponsor, administrator, par- of 2001 is repealed. incurred as a result of a qualified disaster, or ticipant, beneficiary, or other person with re- (c) CLERICAL AMENDMENT.—The item relating ‘‘(4) if such amount is paid by a Federal, spect to such plan, affected by a disaster or ac- to section 2201 in the table of sections for sub- State, or local government, or agency or instru- tion described in subsection (a), the Secretary chapter C of chapter 11 is amended to read as mentality thereof, in connection with a quali- may specify a period of up to one year which follows: fied disaster in order to promote the general wel- may be disregarded in determining the date by ‘‘Sec. 2201. Combat zone-related deaths of mem- fare, which any action is required or permitted to be bers of the Armed Forces and but only to the extent any expense compensated completed under this title. No plan shall be deaths of victims of certain ter- by such payment is not otherwise compensated treated as failing to be operated in accordance rorist attacks.’’. for by insurance or otherwise. with the terms of the plan solely as the result of

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disregarding any period by reason of the pre- (d) CLERICAL AMENDMENTS.— ‘‘(A) finds that the transfer described in para- ceding sentence. (1) The item relating to section 7508A in the graph (1)— ‘‘(c) SPECIAL RULES FOR OVERPAYMENTS.—The table of sections for chapter 77 is amended to ‘‘(i) does not contravene any Federal or State rules of section 7508(b) shall apply for purposes read as follows: statute or the order of any court or responsible of this section.’’. administrative authority, and (b) CLARIFICATION OF SCOPE OF ACTS SEC- ‘‘Sec. 7508A. Authority to postpone certain ‘‘(ii) is in the best interest of the payee, taking RETARY MAY POSTPONE.—Section 7508(a)(1)(K) deadlines by reason of Presi- into account the welfare and support of the (relating to time to be disregarded) is amended dentially declared disaster or ter- payee’s dependents, and by striking ‘‘in regulations prescribed under this roristic or military actions.’’. ‘‘(B) is issued— section’’. (2) The table of contents for the Employee Re- ‘‘(i) under the authority of an applicable (c) CONFORMING AMENDMENTS TO ERISA.— tirement Income Security Act of 1974 is amended State statute by an applicable State court, or (1) Part 5 of subtitle B of title I of the Em- by inserting after the item relating to section 517 ‘‘(ii) by the responsible administrative author- ployee Retirement Income Security Act of 1974 the following new item: ity (if any) which has exclusive jurisdiction over (29 U.S.C. 1131 et seq.) is amended by adding at the underlying action or proceeding which was the end the following new section: ‘‘Sec. 518. Authority to postpone certain dead- resolved by means of the structured settlement. lines by reason of Presidentially ‘‘SEC. 518. AUTHORITY TO POSTPONE CERTAIN ‘‘(3) APPLICABLE STATE STATUTE.—For pur- DEADLINES BY REASON OF PRESI- declared disaster or terroristic or poses of this section, the term ‘applicable State DENTIALLY DECLARED DISASTER OR military actions.’’. statute’ means a statute providing for the entry TERRORISTIC OR MILITARY AC- (e) EFFECTIVE DATE.—The amendments made of an order, judgment, or decree described in TIONS. by this section shall apply to disasters and ter- paragraph (2)(A) which is enacted by— ‘‘In the case of a pension or other employee roristic or military actions occurring on or after ‘‘(A) the State in which the payee of the benefit plan, or any sponsor, administrator, par- September 11, 2001, with respect to any action of structured settlement is domiciled, or ticipant, beneficiary, or other person with re- the Secretary of the Treasury, the Secretary of ‘‘(B) if there is no statute described in sub- spect to such plan, affected by a Presidentially Labor, or the Pension Benefit Guaranty Cor- paragraph (A), the State in which either the declared disaster (as defined in section poration occurring on or after the date of the party to the structured settlement (including an 1033(h)(3) of the Internal Revenue Code of 1986) enactment of this Act. assignee under a qualified assignment under or a terroristic or military action (as defined in SEC. 203. APPLICATION OF CERTAIN PROVISIONS section 130) or the person issuing the funding section 692(c)(2) of such Code), the Secretary TO TERRORISTIC OR MILITARY AC- asset for the structured settlement is domiciled may, notwithstanding any other provision of TIONS. or has its principal place of business. law, prescribe, by notice or otherwise, a period (a) DISABILITY INCOME.—Section 104(a)(5) (re- ‘‘(4) APPLICABLE STATE COURT.—For purposes of up to one year which may be disregarded in lating to compensation for injuries or sickness) of this section— determining the date by which any action is re- is amended by striking ‘‘a violent attack’’ and ‘‘(A) IN GENERAL.—The term ‘applicable State quired or permitted to be completed under this all that follows through the period and inserting court’ means, with respect to any applicable Act. No plan shall be treated as failing to be op- ‘‘a terroristic or military action (as defined in State statute, a court of the State which enacted erated in accordance with the terms of the plan section 692(c)(2)).’’. such statute. solely as the result of disregarding any period (b) EXEMPTION FROM INCOME TAX FOR CER- ‘‘(B) SPECIAL RULE.—In the case of an appli- by reason of the preceding sentence.’’. TAIN MILITARY OR CIVILIAN EMPLOYEES.—Sec- cable State statute described in paragraph (2) Section 4002 of Employee Retirement In- tion 692(c) is amended— (3)(B), such term also includes a court of the come Security Act of 1974 (29 U.S.C. 1302) is (1) by striking ‘‘outside the United States’’ in State in which the payee of the structured set- amended by adding at the end the following paragraph (1), and tlement is domiciled. new subsection: (2) by striking ‘‘SUSTAINED OVERSEAS’’ in the ‘‘(5) QUALIFIED ORDER DISPOSITIVE.—A quali- ‘‘(i) SPECIAL RULES REGARDING DISASTERS, heading. fied order shall be treated as dispositive for pur- ETC.—In the case of a pension or other employee (c) EFFECTIVE DATE.—The amendments made poses of the exception under this subsection. benefit plan, or any sponsor, administrator, par- by this section shall apply to taxable years end- ‘‘(c) DEFINITIONS.—For purposes of this sec- ticipant, beneficiary, or other person with re- ing on or after September 11, 2001. tion— spect to such plan, affected by a Presidentially SEC. 204. CLARIFICATION OF DUE DATE FOR AIR- ‘‘(1) STRUCTURED SETTLEMENT.—The term declared disaster (as defined in section LINE EXCISE TAX DEPOSITS. ‘structured settlement’ means an arrangement— 1033(h)(3) of the Internal Revenue Code of 1986) (a) IN GENERAL.—Paragraph (3) of section ‘‘(A) which is established by— or a terroristic or military action (as defined in 301(a) of the Air Transportation Safety and Sys- ‘‘(i) suit or agreement for the periodic pay- section 692(c)(2) of such Code), the corporation tem Stabilization Act (Public Law 107–42) is ment of damages excludable from the gross in- may, notwithstanding any other provision of amended to read as follows: come of the recipient under section 104(a)(2), or law, prescribe, by notice or otherwise, a period ‘‘(3) AIRLINE-RELATED DEPOSIT.—For purposes ‘‘(ii) agreement for the periodic payment of of up to one year which may be disregarded in of this subsection, the term ‘airline-related de- compensation under any workers’ compensation determining the date by which any action is re- posit’ means any deposit of taxes imposed by law excludable from the gross income of the re- quired or permitted to be completed under this subchapter C of chapter 33 of such Code (relat- cipient under section 104(a)(1), and Act. No plan shall be treated as failing to be op- ing to transportation by air).’’. ‘‘(B) under which the periodic payments are— erated in accordance with the terms of the plan (b) EFFECTIVE DATE.—The amendment made ‘‘(i) of the character described in subpara- solely as the result of disregarding any period by this section shall take effect as if included in graphs (A) and (B) of section 130(c)(2), and by reason of the preceding sentence.’’. section 301 of the Air Transportation Safety and ‘‘(ii) payable by a person who is a party to the (d) ADDITIONAL CONFORMING AMENDMENTS.— System Stabilization Act (Public Law 107–42). suit or agreement or to the workers’ compensa- (1) Section 6404 is amended— tion claim or by a person who has assumed the (A) by striking subsection (h), SEC. 205. TREATMENT OF CERTAIN STRUCTURED SETTLEMENT PAYMENTS. liability for such periodic payments under a (B) by redesignating subsection (i) as sub- qualified assignment in accordance with section (a) IN GENERAL.—Subtitle E is amended by section (h), and adding at the end the following new chapter: 130. (C) by adding at the end the following new ‘‘(2) STRUCTURED SETTLEMENT PAYMENT subsection: ‘‘CHAPTER 55—STRUCTURED SETTLEMENT RIGHTS.—The term ‘structured settlement pay- ‘‘(i) CROSS REFERENCE.— FACTORING TRANSACTIONS ment rights’ means rights to receive payments ‘‘For authority to suspend running of inter- ‘‘Sec. 5891. Structured settlement factoring under a structured settlement. est, etc. by reason of Presidentially declared transactions. ‘‘(3) STRUCTURED SETTLEMENT FACTORING disaster or terroristic or military action, see ‘‘SEC. 5891. STRUCTURED SETTLEMENT FAC- TRANSACTION.— section 7508A.’’. TORING TRANSACTIONS. ‘‘(A) IN GENERAL.—The term ‘structured settle- (2) Section 6081(c) is amended to read as fol- ‘‘(a) IMPOSITION OF TAX.—There is hereby im- ment factoring transaction’ means a transfer of lows: posed on any person who acquires directly or structured settlement payment rights (including ‘‘(c) CROSS REFERENCES.— indirectly structured settlement payment rights portions of structured settlement payments) in a structured settlement factoring transaction made for consideration by means of sale, assign- ‘‘For time for performing certain acts post- a tax equal to 40 percent of the factoring dis- ment, pledge, or other form of encumbrance or poned by reason of war, see section 7508, and count as determined under subsection (c)(4) alienation for consideration. by reason of Presidentially declared disaster with respect to such factoring transaction. ‘‘(B) EXCEPTION.—Such term shall not in- or terroristic or military action, see section ‘‘(b) EXCEPTION FOR CERTAIN APPROVED clude— 7508A.’’. TRANSACTIONS.— ‘‘(i) the creation or perfection of a security in- (3) Section 6161(d) is amended by adding at ‘‘(1) IN GENERAL.—The tax under subsection terest in structured settlement payment rights the end the following new paragraph: (a) shall not apply in the case of a structured under a blanket security agreement entered into ‘‘(3) POSTPONEMENT OF CERTAIN ACTS.— settlement factoring transaction in which the with an insured depository institution in the ab- ‘‘For time for performing certain acts post- transfer of structured settlement payment rights sence of any action to redirect the structured poned by reason of war, see section 7508, and is approved in advance in a qualified order. settlement payments to such institution (or by reason of Presidentially declared disaster ‘‘(2) QUALIFIED ORDER.—For purposes of this agent or successor thereof) or otherwise to en- or terroristic or military action, see section section, the term ‘qualified order’ means a final force such blanket security interest as against 7508A.’’. order, judgment, or decree which— the structured settlement payment rights, or

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00088 Fmt 0624 Sfmt 6333 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S13861 ‘‘(ii) a subsequent transfer of structured set- ment payee for the transferred payments, the the amount of such deduction before computing tlement payment rights acquired in a structured discounted present value of the transferred pay- the amount otherwise allowable as a deprecia- settlement factoring transaction. ments (including the present value as deter- tion deduction under this chapter for such tax- ‘‘(4) FACTORING DISCOUNT.—The term ‘fac- mined in the manner described in section 7520 of able year and any subsequent taxable year. toring discount’ means an amount equal to the such Code), and the expenses required under the ‘‘(2) QUALIFIED NEW YORK LIBERTY ZONE excess of— terms of the structured settlement factoring PROPERTY.—For purposes of this subsection— ‘‘(A) the aggregate undiscounted amount of transaction to be paid by the structured settle- ‘‘(A) IN GENERAL.—The term ‘qualified New structured settlement payments being acquired ment payee or deducted from the proceeds of York Liberty Zone property’ means property— in the structured settlement factoring trans- such transaction. ‘‘(i)(I) to which section 168 applies (other than action, over SEC. 206. PERSONAL EXEMPTION DEDUCTION railroad grading and tunnel bores), or ‘‘(B) the total amount actually paid by the FOR CERTAIN DISABILITY TRUSTS. ‘‘(II) which is computer software (as defined acquirer to the person from whom such struc- (a) IN GENERAL.—Subsection (b) of section 642 in section 167(f)(1)(B)) for which a deduction is tured settlement payments are acquired. (relating to deduction for personal exemption) is allowable under section 167(a) without regard to ‘‘(5) RESPONSIBLE ADMINISTRATIVE AUTHOR- amended to read as follows: this subsection, ITY.—The term ‘responsible administrative au- ‘‘(b) DEDUCTION FOR PERSONAL EXEMPTION.— ‘‘(ii) substantially all of the use of which is in thority’ means the administrative authority ‘‘(1) ESTATES.—An estate shall be allowed a the New York Liberty Zone and is in the active which had jurisdiction over the underlying ac- deduction of $600. conduct of a trade or business by the taxpayer tion or proceeding which was resolved by means ‘‘(2) TRUSTS.— in such Zone, of the structured settlement. ‘‘(A) IN GENERAL.—Except as otherwise pro- ‘‘(iii) the original use of which in the New ‘‘(6) STATE.—The term ‘State’ includes the vided in this paragraph, a trust shall be allowed York Liberty Zone commences with the taxpayer Commonwealth of Puerto Rico and any posses- a deduction of $100. after September 10, 2001, and sion of the United States. ‘‘(B) TRUSTS DISTRIBUTING INCOME CUR- ‘‘(iv) which is acquired by the taxpayer by ‘‘(d) COORDINATION WITH OTHER PROVI- RENTLY.—A trust which, under its governing in- purchase (as defined in section 179(d)) after SIONS.— strument, is required to distribute all of its in- September 10, 2001, and placed in service by the ‘‘(1) IN GENERAL.—If the applicable require- come currently shall be allowed a deduction of taxpayer on or before the termination date, but ments of sections 72, 104(a)(1), 104(a)(2), 130, $300. only if no written binding contract for the ac- and 461(h) were satisfied at the time the struc- ‘‘(C) DISABILITY TRUSTS.— quisition was in effect before September 11, 2001. tured settlement involving structured settlement ‘‘(i) IN GENERAL.—A qualified disability trust The term ‘termination date’ means December 31, payment rights was entered into, the subsequent shall be allowed a deduction equal to the exemp- 2006 (December 31, 2009, in the case of nonresi- occurrence of a structured settlement factoring tion amount under section 151(d), determined— dential real property and residential rental transaction shall not affect the application of ‘‘(I) by treating such trust as an individual property). the provisions of such sections to the parties to described in section 151(d)(3)(C)(iii), and ‘‘(B) EXCEPTIONS.— the structured settlement (including an assignee ‘‘(II) by applying section 67(e) (without the ‘‘(i) ALTERNATIVE DEPRECIATION PROPERTY.— under a qualified assignment under section 130) reference to section 642(b)) for purposes of deter- The term ‘qualified New York Liberty Zone in any taxable year. mining the adjusted gross income of the trust. property’ shall not include any property to ‘‘(2) NO WITHHOLDING OF TAX.—The provisions ‘‘(ii) QUALIFIED DISABILITY TRUST.—For pur- which the alternative depreciation system under of section 3405 regarding withholding of tax poses of clause (i), the term ‘qualified disability section 168(g) applies, determined— shall not apply to the person making the pay- trust’ means any trust if— ‘‘(I) without regard to paragraph (7) of sec- ments in the event of a structured settlement ‘‘(I) such trust is a disability trust described tion 168(g) (relating to election to have system factoring transaction.’’. in subsection (c)(2)(B)(iv), (d)(4)(A), or (d)(4)(C) apply), and (b) CLERICAL AMENDMENT.—The table of of section 1917 of the Social Security Act (42 ‘‘(II) after application of section 280F(b) (re- chapters for subtitle E is amended by adding at U.S.C. 1396p), and lating to listed property with limited business the end the following new item: ‘‘(II) all of the beneficiaries of the trust as of use). the close of the taxable year are determined to ‘‘(ii) QUALIFIED LEASEHOLD IMPROVEMENT ‘‘Chapter 55. Structured settlement factoring have been disabled (within the meaning of sec- PROPERTY.—Such term shall not include quali- transactions.’’. tion 1614(a)(3) of the Social Security Act, 42 fied leasehold improvement property. (c) EFFECTIVE DATES.— U.S.C. 1382c(a)(3)) for some portion of such ‘‘(iii) ELECTION OUT.—If a taxpayer makes an (1) IN GENERAL.—The amendments made by year. election under this clause with respect to any this section (other than the provisions of section A trust shall not fail to meet the requirements of class of property for any taxable year, this sub- 5891(d) of the Internal Revenue Code of 1986, as subclause (II) merely because the corpus of the section shall not apply to all property in such added by this section) shall apply to structured trust may revert to a person who is not so dis- class placed in service during such taxable year. settlement factoring transactions (as defined in abled after the trust ceases to have any bene- ‘‘(C) SPECIAL RULES RELATING TO ORIGINAL section 5891(c) of such Code (as so added)) en- ficiary who is so disabled.’’ USE.— tered into on or after the 30th day following the ‘‘(3) DEDUCTIONS IN LIEU OF PERSONAL EXEMP- ‘‘(i) SELF-CONSTRUCTED PROPERTY.—In the date of the enactment of this Act. TION.—The deductions allowed by this sub- case of a taxpayer manufacturing, constructing, (2) CLARIFICATION OF EXISTING LAW.—Section section shall be in lieu of the deductions allowed or producing property for the taxpayer’s own 5891(d) of such Code (as so added) shall apply under section 151 (relating to deduction for per- use, the requirements of clause (iv) of subpara- to structured settlement factoring transactions sonal exemption).’’. graph (A) shall be treated as met if the taxpayer (as defined in section 5891(c) of such Code (as so (b) EFFECTIVE DATE.—The amendment made begins manufacturing, constructing, or pro- added)) entered into on or after such 30th day. by this section shall apply to taxable years end- ducing the property after September 10, 2001, (3) TRANSITION RULE.—In the case of a struc- ing on or after September 11, 2001. and before the termination date. tured settlement factoring transaction entered TITLE III—TAX BENEFITS FOR AREA OF ‘‘(ii) SALE-LEASEBACKS.—For purposes of sub- into during the period beginning on the 30th NEW YORK CITY DAMAGED IN TER- paragraph (A)(iii), if property— day following the date of the enactment of this RORIST ATTACKS ON SEPTEMBER 11, ‘‘(I) is originally placed in service after Sep- Act and ending on July 1, 2002, no tax shall be 2001 tember 10, 2001, by a person, and imposed under section 5891(a) of such Code if— ‘‘(II) sold and leased back by such person (A) the structured settlement payee is domi- SEC. 301. TAX BENEFITS FOR AREA OF NEW YORK within 3 months after the date such property CITY DAMAGED IN TERRORIST AT- ciled in a State (or possession of the United TACKS ON SEPTEMBER 11, 2001. was originally placed in service, States) which has not enacted a statute pro- (a) IN GENERAL.—Chapter 1 is amended by such property shall be treated as originally viding that the structured settlement factoring adding at the end the following new subchapter: placed in service not earlier than the date on transaction is ineffective unless the transaction which such property is used under the leaseback ‘‘Subchapter Y—New York Liberty Zone has been approved by an order, judgment, or de- referred to in subclause (II). Benefits cree of a court (or where applicable, a respon- ‘‘(D) ALLOWANCE AGAINST ALTERNATIVE MIN- sible administrative authority) which finds that ‘‘Sec. 1400L. Tax benefits for New York Liberty IMUM TAX.—The deduction allowed by this sub- such transaction— Zone. section shall be allowed in determining alter- (i) does not contravene any Federal or State ‘‘SEC. 1400L. TAX BENEFITS FOR NEW YORK LIB- native minimum taxable income under section statute or the order of any court (or responsible ERTY ZONE. 55. administrative authority), and ‘‘(a) SPECIAL ALLOWANCE FOR CERTAIN PROP- ‘‘(b) 5-YEAR RECOVERY PERIOD FOR DEPRECIA- (ii) is in the best interest of the structured set- ERTY ACQUIRED AFTER SEPTEMBER 10, 2001.— TION OF CERTAIN LEASEHOLD IMPROVEMENTS.— tlement payee or is appropriate in light of a ‘‘(1) ADDITIONAL ALLOWANCE.—In the case of ‘‘(1) IN GENERAL.—For purposes of section 168, hardship faced by the payee, and any qualified New York Liberty Zone property— the term ‘5-year property’ includes any qualified (B) the person acquiring the structured settle- ‘‘(A) the depreciation deduction provided by leasehold improvement property. ment payment rights discloses to the structured section 167(a) for the taxable year in which such ‘‘(2) QUALIFIED LEASEHOLD IMPROVEMENT settlement payee in advance of the structured property is placed in service shall include an al- PROPERTY.—For purposes of this section— settlement factoring transaction the amounts lowance equal to 30 percent of the adjusted ‘‘(A) IN GENERAL.—The term ‘qualified lease- and due dates of the payments to be transferred, basis of such property, and hold improvement property’ means any improve- the aggregate amount to be transferred, the con- ‘‘(B) the adjusted basis of the qualified New ment to an interior portion of a building which sideration to be received by the structured settle- York Liberty Zone property shall be reduced by is nonresidential real property if—

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00089 Fmt 0624 Sfmt 6333 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S13862 CONGRESSIONAL RECORD — SENATE December 20, 2001 ‘‘(i) such building is located in the New York property which is qualified New York Liberty tially all of the use of which is in the New York Liberty Zone, Zone property shall be 50 percent of the cost Liberty Zone and is in the active conduct of a ‘‘(ii) such improvement is made under or pur- thereof. trade or business by the taxpayer in such Zone. suant to a lease (as defined in section ‘‘(2) RECAPTURE.—Rules similar to the rules ‘‘(F) Repayments of principal on financing 168(h)(7))— under section 179(d)(10) shall apply with respect provided by the issue— ‘‘(I) by the lessee (or any sublessee) of such to any qualified New York Liberty Zone prop- ‘‘(i) may not be used to provide financing, and portion, or erty which ceases to be used in the New York ‘‘(ii) are used not later than the close of the ‘‘(II) by the lessor of such portion, Liberty Zone. 1st semiannual period beginning after the date ‘‘(iii) such portion is to be occupied exclu- ‘‘(d) TAX-EXEMPT BOND FINANCING.— of the repayment to redeem bonds which are sively by the lessee (or any sublessee) of such ‘‘(1) IN GENERAL.—For purposes of this title, part of such issue. portion, any qualified New York Liberty Bond shall be ‘‘(iv) such improvement is placed in service— The requirement of clause (ii) shall be treated as treated as an exempt facility bond. met with respect to amounts received within 10 ‘‘(I) after September 10, 2001, and more than 3 ‘‘(2) QUALIFIED NEW YORK LIBERTY BOND.— years after the date of issuance of the issue (or, years after the date the building was first For purposes of this subsection, the term ‘quali- in the case of refunding bond, the date of placed in service, and fied New York Liberty Bond’ means any bond issuance of the original bond) if such amounts ‘‘(II) before January 1, 2007, and issued as part of an issue if— are used by the close of such 10 years to redeem ‘‘(v) no written binding contract for such im- ‘‘(A) 95 percent or more of the net proceeds (as bonds which are part of such issue. provement was in effect before September 11, defined in section 150(a)(3)) of such issue are to ‘‘(G) Section 57(a)(5) shall not apply. 2001. be used for qualified project costs, ‘‘(6) SEPARATE ISSUE TREATMENT OF PORTIONS ‘‘(B) CERTAIN IMPROVEMENTS NOT INCLUDED.— ‘‘(B) such bond is issued by the State of New OF AN ISSUE.—This subsection shall not apply to Such term shall not include any improvement York or any political subdivision thereof, for which the expenditure is attributable to— ‘‘(C) the Governor of New York designates the portion of the proceeds of an issue which (if ‘‘(i) the enlargement of the building, such bond for purposes of this section, and issued as a separate issue) would be treated as ‘‘(ii) any elevator or escalator, ‘‘(D) such bond is issued during calendar year a qualified bond or as a bond that is not a pri- ‘‘(iii) any structural component benefiting a 2002, 2003, or 2004. vate activity bond (determined without regard to common area, and ‘‘(3) LIMITATION ON AMOUNT OF BONDS DES- subsection (a)), if the issuer elects to so treat ‘‘(iv) the internal structural framework of the IGNATED.—The maximum aggregate face amount such portion. building. of bonds which may be designated under this ‘‘(e) EXTENSION OF REPLACEMENT PERIOD FOR ‘‘(C) DEFINITIONS AND SPECIAL RULES.—For subsection shall not exceed $15,000,000,000. NONRECOGNITION OF GAIN.—Notwithstanding purposes of this paragraph— ‘‘(4) QUALIFIED PROJECT COSTS.—For purposes subsections (g) and (h) of section 1033, clause (i) ‘‘(i) COMMITMENT TO LEASE TREATED AS of this subsection— of section 1033(a)(2)(B) shall be applied by sub- LEASE.—A commitment to enter into a lease shall ‘‘(A) IN GENERAL.—The term ‘qualified project stituting ‘5 years’ for ‘2 years’ with respect to be treated as a lease, and the parties to such costs’ means the cost of acquisition, construc- property which is compulsorily or involuntarily commitment shall be treated as lessor and lessee, tion, reconstruction, and renovation of— converted as a result of the terrorist attacks on respectively. ‘‘(i) nonresidential real property and residen- September 11, 2001, in the New York Liberty ‘‘(ii) RELATED PERSONS.—A lease between re- tial rental property (including fixed tenant im- Zone but only if substantially all of the use of lated persons shall not be considered a lease. provements associated with such property) lo- the replacement property is in the City of New For purposes of the preceding sentence, the term cated in the New York Liberty Zone, and York, New York. ‘related persons’ means— ‘‘(ii) public utility property located in the New ‘‘(f) NEW YORK LIBERTY ZONE.—For purposes ‘‘(I) members of an affiliated group (as de- York Liberty Zone. of this section, the term ‘New York Liberty fined in section 1504), and ‘‘(B) COSTS FOR CERTAIN PROPERTY OUTSIDE Zone’ means the area located on or south of ‘‘(II) persons having a relationship described Canal Street, East Broadway (east of its inter- in subsection (b) of section 267; except that, for ZONE INCLUDED.—Such term includes the cost of acquisition, construction, reconstruction, and section with Canal Street), or Grand Street (east purposes of this clause, the phrase ‘80 percent or of its intersection with East Broadway) in the more’ shall be substituted for the phrase ‘more renovation of nonresidential real property (in- cluding fixed tenant improvements associated Borough of Manhattan in the City of New York, than 50 percent’ each place it appears in such New York.’’ subsection. with such property) located outside the New (b) CLERICAL AMENDMENT.—The table of sub- ‘‘(D) IMPROVEMENTS MADE BY LESSOR.— York Liberty Zone but within the City of New chapters for chapter 1 is amended by adding at ‘‘(i) IN GENERAL.—In the case of an improve- York, New York, if such property is part of a the end the following new item: ment made by the person who was the lessor of project which consists of at least 100,000 square such improvement when such improvement was feet of usable office or other commercial space ‘‘Subchapter Y. New York Liberty Zone Bene- placed in service, such improvement shall be located in a single building or multiple adjacent fits.’’ buildings. qualified leasehold improvement property (if at TITLE IV—DISCLOSURE OF TAX INFORMA- all) only so long as such improvement is held by ‘‘(C) LIMITATIONS.—Such term shall not in- clude— TION IN TERRORISM AND NATIONAL SE- such person. CURITY INVESTIGATIONS ‘‘(ii) EXCEPTION FOR CHANGES IN FORM OF ‘‘(i) costs for property located outside the New SEC. 401. DISCLOSURE OF TAX INFORMATION IN BUSINESS.—Property shall not cease to be quali- York Liberty Zone to the extent such costs ex- ceed $7,000,000,000, TERRORISM AND NATIONAL SECU- fied leasehold improvement property under RITY INVESTIGATIONS. clause (i) by reason of— ‘‘(ii) costs with respect to residential rental (a) DISCLOSURE WITHOUT A REQUEST OF IN- ‘‘(I) death, property to the extent such costs exceed FORMATION RELATING TO TERRORIST ACTIVITIES, ‘‘(II) a transaction to which section 381(a) ap- $3,000,000,000, and ETC.—Paragraph (3) of section 6103(i) (relating plies, or ‘‘(iii) costs with respect to property used for ‘‘(III) a mere change in the form of con- retail sales of tangible property to the extent to disclosure of return information to apprise ducting the trade or business so long as the such costs exceed $1,500,000,000. appropriate officials of criminal activities or property is retained in such trade or business as ‘‘(D) MOVABLE FIXTURES AND EQUIPMENT.— emergency circumstances) is amended by adding qualified leasehold improvement property and Such term shall not include costs with respect to at the end the following new subparagraph: the taxpayer retains a substantial interest in movable fixtures and equipment. ‘‘(C) TERRORIST ACTIVITIES, ETC.— such trade or business. ‘‘(5) SPECIAL RULES.—In applying this title to ‘‘(i) IN GENERAL.—Except as provided in para- ‘‘(3) REQUIREMENT TO USE STRAIGHT LINE any qualified New York Liberty Bond, the fol- graph (6), the Secretary may disclose in writing METHOD.—The applicable depreciation method lowing modifications shall apply: return information (other than taxpayer return under section 168 shall be the straight line meth- ‘‘(A) Section 146 (relating to volume cap) shall information) that may be related to a terrorist od in the case of qualified leasehold improve- not apply. incident, threat, or activity to the extent nec- ment property. ‘‘(B) Section 147(c) (relating to limitation on essary to apprise the head of the appropriate ‘‘(4) 9-YEAR RECOVERY PERIOD UNDER ALTER- use for land acquisition) shall be determined by Federal law enforcement agency responsible for NATIVE SYSTEM.—For purposes of section 168(g), reference to the aggregate authorized face investigating or responding to such terrorist in- the class life of qualified leasehold improvement amount of all qualified New York Liberty Bonds cident, threat, or activity. The head of the agen- property shall be 9 years. rather than the net proceeds of each issue. cy may disclose such return information to offi- ‘‘(c) INCREASE IN EXPENSING UNDER SECTION ‘‘(C) Section 147(d) (relating to acquisition of cers and employees of such agency to the extent 179.— existing property not permitted) shall be applied necessary to investigate or respond to such ter- ‘‘(1) IN GENERAL.—For purposes of section by substituting ‘50 percent’ for ‘15 percent’ each rorist incident, threat, or activity. 179— place it appears. ‘‘(ii) DISCLOSURE TO THE DEPARTMENT OF JUS- ‘‘(A) the limitation under section 179(b)(1) ‘‘(D) Section 148(f)(4)(C) (relating to exception TICE.—Returns and taxpayer return information shall be increased by the lesser of— from rebate for certain proceeds to be used to fi- may also be disclosed to the Attorney General ‘‘(i) $35,000, or nance construction expenditures) shall apply to under clause (i) to the extent necessary for, and ‘‘(ii) the cost of section 179 property which is construction proceeds of bonds issued under this solely for use in preparing, an application qualified New York Liberty Zone property section. under paragraph (7)(D). placed in service during the taxable year, and ‘‘(E) Financing provided by such a bond shall ‘‘(iii) TAXPAYER IDENTITY.—For purposes of ‘‘(B) the amount taken into account under not be taken into account under section this subparagraph, a taxpayer’s identity shall section 179(b)(2) with respect to any section 179 168(g)(5)(A) with respect to property substan- not be treated as taxpayer return information.

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‘‘(iv) TERMINATION.—No disclosure may be information concerning any terrorist incident, or international terrorism (as defined in section made under this subparagraph after December threat, or activity. 2331(1) of such title).’’. 31, 2003.’’. ‘‘(iv) TAXPAYER IDENTITY.—For purposes of (3) The heading of section 6103(i)(3) is amend- (b) DISCLOSURE UPON REQUEST OF INFORMA- this subparagraph, a taxpayer’s identity shall ed by inserting ‘‘OR TERRORIST’’ after ‘‘CRIMI- TION RELATING TO TERRORIST ACTIVITIES, not be treated as taxpayer return information. NAL’’. ETC.—Subsection (i) of section 6103 (relating to ‘‘(C) DISCLOSURE UNDER EX PARTE ORDERS.— (4) Paragraph (4) of section 6103(i) is amend- disclosure to Federal officers or employees for ‘‘(i) IN GENERAL.—Except as provided in para- ed— administration of Federal laws not relating to graph (6), any return or return information (A) in subparagraph (A) by inserting ‘‘or tax administration) is amended by redesignating with respect to any specified taxable period or (7)(C)’’ after ‘‘paragraph (1)’’, and paragraph (7) as paragraph (8) and by inserting periods shall, pursuant to and upon the grant of (B) in subparagraph (B) by striking ‘‘or after paragraph (6) the following new para- an ex parte order by a Federal district court (3)(A)’’ and inserting ‘‘(3)(A) or (C), or (7)’’. graph: judge or magistrate under clause (ii), be open (5) Paragraph (6) of section 6103(i) is amend- ‘‘(7) DISCLOSURE UPON REQUEST OF INFORMA- (but only to the extent necessary as provided in ed— TION RELATING TO TERRORIST ACTIVITIES, ETC.— such order) to inspection by, or disclosure to, of- (A) by striking ‘‘(3)(A)’’ and inserting ‘‘(3)(A) ‘‘(A) DISCLOSURE TO LAW ENFORCEMENT AGEN- ficers and employees of any Federal law en- or (C)’’, and CIES.— forcement agency or Federal intelligence agency (B) by striking ‘‘or (7)’’ and inserting ‘‘(7), or ‘‘(i) IN GENERAL.—Except as provided in para- who are personally and directly engaged in any (8)’’. graph (6), upon receipt by the Secretary of a investigation, response to, or analysis of intel- (6) Section 6103(p)(3) is amended— (A) in subparagraph (A) by striking written request which meets the requirements of ligence and counterintelligence information con- ‘‘(7)(A)(ii)’’ and inserting ‘‘(8)(A)(ii)’’, and clause (iii), the Secretary may disclose return cerning any terrorist incident, threat, or activ- (B) in subparagraph (C) by striking information (other than taxpayer return infor- ity. Return or return information opened to in- ‘‘(i)(3)(B)(i)’’ and inserting ‘‘(i)(3)(B)(i) or mation) to officers and employees of any Fed- spection or disclosure pursuant to the preceding (7)(A)(ii)’’. eral law enforcement agency who are personally sentence shall be solely for the use of such offi- (7) Section 6103(p)(4) is amended— and directly engaged in the response to or inves- cers and employees in the investigation, re- tigation of any terrorist incident, threat, or ac- (A) in the matter preceding subparagraph sponse, or analysis, and in any judicial, admin- (A)— tivity. istrative, or grand jury proceedings, pertaining ‘‘(ii) DISCLOSURE TO STATE AND LOCAL LAW EN- (i) by striking ‘‘or (5),’’ the first place it ap- to such terrorist incident, threat, or activity. pears and inserting ‘‘(5), or (7),’’, and FORCEMENT AGENCIES.—The head of any Federal ‘‘(ii) APPLICATION FOR ORDER.—The Attorney law enforcement agency may disclose return in- (ii) by striking ‘‘(i)(3)(B)(i),’’ and inserting General, the Deputy Attorney General, the As- ‘‘(i)(3)(B)(i) or (7)(A)(ii),’’, and formation obtained under clause (i) to officers sociate Attorney General, any Assistant Attor- and employees of any State or local law enforce- (B) in subparagraph (F)(ii) by striking ‘‘or ney General, or any United States attorney may (5),’’ the first place it appears and inserting ‘‘(5) ment agency but only if such agency is part of authorize an application to a Federal district a team with the Federal law enforcement agency or (7),’’. court judge or magistrate for the order referred (8) Section 6103(p)(6)(B)(i) is amended by in such response or investigation and such in- to in clause (i). Upon such application, such striking ‘‘(i)(7)(A)(ii)’’ and inserting formation is disclosed only to officers and em- judge or magistrate may grant such order if he ‘‘(i)(8)(A)(ii)’’. ployees who are personally and directly engaged determines on the basis of the facts submitted by (9) Section 6105(b) is amended— in such response or investigation. the applicant that— (A) by striking ‘‘or’’ at the end of paragraph ‘‘(iii) REQUIREMENTS.—A request meets the re- ‘‘(I) there is reasonable cause to believe, based (2), quirements of this clause if— upon information believed to be reliable, that (B) by striking ‘‘paragraphs (1) or (2)’’ in ‘‘(I) the request is made by the head of any the return or return information may be rel- paragraph (3) and inserting ‘‘paragraph (1), (2), Federal law enforcement agency (or his dele- evant to a matter relating to such terrorist inci- or (3)’’, gate) involved in the response to or investigation dent, threat, or activity, and (C) by redesignating paragraph (3) as para- of any terrorist incident, threat, or activity, and ‘‘(II) the return or return information is graph (4), and ‘‘(II) the request sets forth the specific reason sought exclusively for use in a Federal inves- (D) by inserting after paragraph (2) the fol- or reasons why such disclosure may be relevant tigation, analysis, or proceeding concerning any lowing new paragraph: to a terrorist incident, threat, or activity. terrorist incident, threat, or activity. ‘‘(3) to the disclosure of tax convention infor- ‘‘(iv) LIMITATION ON USE OF INFORMATION.— ‘‘(D) SPECIAL RULE FOR EX PARTE DISCLOSURE mation on the same terms as return information Information disclosed under this subparagraph BY THE IRS.— may be disclosed under paragraph (3)(C) or (7) shall be solely for the use of the officers and em- ‘‘(i) IN GENERAL.—Except as provided in para- of section 6103(i), except that in the case of tax ployees to whom such information is disclosed in graph (6), the Secretary may authorize an appli- convention information provided by a foreign such response or investigation. cation to a Federal district court judge or mag- government, no disclosure may be made under ‘‘(B) DISCLOSURE TO INTELLIGENCE AGEN- istrate for the order referred to in subparagraph this paragraph without the written consent of CIES.— (C)(i). Upon such application, such judge or the foreign government, or’’. ‘‘(i) IN GENERAL.—Except as provided in para- magistrate may grant such order if he deter- (10) Section 7213(a)(2) is amended by striking graph (6), upon receipt by the Secretary of a mines on the basis of the facts submitted by the ‘‘(i)(3)(B)(i),’’ and inserting ‘‘(i)(3)(B)(i) or written request which meets the requirements of applicant that the requirements of subpara- (7)(A)(ii),’’. clause (ii), the Secretary may disclose return in- graph (C)(ii)(I) are met. (d) EFFECTIVE DATE.—The amendments made formation (other than taxpayer return informa- ‘‘(ii) LIMITATION ON USE OF INFORMATION.— by this section shall apply to disclosures made tion) to those officers and employees of the De- Information disclosed under clause (i)— on or after the date of the enactment of this Act. partment of Justice, the Department of the ‘‘(I) may be disclosed only to the extent nec- Treasury, and other Federal intelligence agen- TITLE V—NO IMPACT ON SOCIAL essary to apprise the head of the appropriate cies who are personally and directly engaged in SECURITY TRUST FUNDS Federal law enforcement agency responsible for the collection or analysis of intelligence and SEC. 501. NO IMPACT ON SOCIAL SECURITY investigating or responding to a terrorist inci- counterintelligence information or investigation TRUST FUNDS. dent, threat, or activity, and concerning any terrorist incident, threat, or ac- (a) IN GENERAL.—Nothing in this Act (or an ‘‘(II) shall be solely for use in a Federal inves- tivity. For purposes of the preceding sentence, amendment made by this Act) shall be construed tigation, analysis, or proceeding concerning any the information disclosed under the preceding to alter or amend title II of the Social Security terrorist incident, threat, or activity. sentence shall be solely for the use of such offi- Act (or any regulation promulgated under that cers and employees in such investigation, collec- The head of such Federal agency may disclose Act). tion, or analysis. such information to officers and employees of (b) TRANSFERS.— ‘‘(ii) REQUIREMENTS.—A request meets the re- such agency to the extent necessary to inves- (1) ESTIMATE OF SECRETARY.—The Secretary quirements of this subparagraph if the request— tigate or respond to such terrorist incident, of the Treasury shall annually estimate the im- ‘‘(I) is made by an individual described in threat, or activity. pact that the enactment of this Act has on the clause (iii), and ‘‘(E) TERMINATION.—No disclosure may be income and balances of the trust funds estab- ‘‘(II) sets forth the specific reason or reasons made under this paragraph after December 31, lished under section 201 of the Social Security why such disclosure may be relevant to a ter- 2003.’’. Act (42 U.S.C. 401). rorist incident, threat, or activity. (c) CONFORMING AMENDMENTS.— (2) TRANSFER OF FUNDS.—If, under paragraph ‘‘(iii) REQUESTING INDIVIDUALS.—An indi- (1) Section 6103(a)(2) is amended by inserting (1), the Secretary of the Treasury estimates that vidual described in this subparagraph is an in- ‘‘any local law enforcement agency receiving in- the enactment of this Act has a negative impact dividual— formation under subsection (i)(7)(A),’’ after on the income and balances of the trust funds ‘‘(I) who is an officer or employee of the De- ‘‘State,’’. established under section 201 of the Social Secu- partment of Justice or the Department of the (2) Section 6103(b) is amended by adding at rity Act (42 U.S.C. 401), the Secretary shall Treasury who is appointed by the President the end the following new paragraph: transfer, not less frequently than quarterly, with the advice and consent of the Senate or ‘‘(11) TERRORIST INCIDENT, THREAT, OR ACTIV- from the general revenues of the Federal Gov- who is the Director of the United States Secret ITY.—The term ‘terrorist incident, threat, or ac- ernment an amount sufficient so as to ensure Service, and tivity’ means an incident, threat, or activity in- that the income and balances of such trust ‘‘(II) who is responsible for the collection and volving an act of domestic terrorism (as defined funds are not reduced as a result of the enact- analysis of intelligence and counterintelligence in section 2331(5) of title 18, United States Code) ment of this Act.

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00091 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S13864 CONGRESSIONAL RECORD — SENATE December 20, 2001 The amendment (No. 2689) was agreed not added is that once we had one, The clerk will call the roll. to. there would be two, three, four, and we The legislative clerk called the roll. (The text of the amendment is print- could not get all those worked out in Mr. REID. I announce that the Sen- ed in today’s RECORD under ‘‘Amend- the short time we had, and we stood ator from Hawaii (Mr. AKAKA) is nec- ments Submitted and Proposed.’’) the chance of losing the victims’ tax essarily absent. Mr. TORRICELLI. I express my provisions. I am glad we did that. Mr. NICKLES. I announce that the thanks to Senator DASCHLE, Senator Also, I understand many of these pro- Senator from Missouri (Mr. BOND), the LOTT, Senator BAUCUS, Senator GRASS- visions, including the New York provi- Senator from Nevada (Mr. ENSIGN), and LEY, Senator NICKLES, and so many sion, are in the stimulus package that the Senator from North Carolina (Mr. Members of the Senate who made this has been voted on by the House. We are HELMS) are necessarily absent. possible. I know during this Christmas going to eventually get a stimulus The PRESIDING OFFICER. Are there season that the plight and distress of package, and I hope and expect that any other Senators in the Chamber de- the families of those who lost their provision will be in the bill. siring to vote? lives in Virginia, New York, New Jer- I yield the floor. The result was announced—yeas 94, sey, and Pennsylvania will be in all of The PRESIDING OFFICER. The Sen- nays 2, as follows: our thoughts. That really is not ator from New Jersey. [Rollcall Vote No. 380 Leg.] enough. Mr. CORZINE. I thank the Chair. YEAS—94 Madam President, I, too, thank the Charities have raised an enormous Allard Durbin Mikulski amount of money, but it has not gotten Senate and the leadership of Senator Allen Edwards Miller to the victims’ families. There is a vic- DASCHLE, Senator LOTT, the chairman Baucus Enzi Murkowski of the House Ways and Means Com- Bayh Feingold Murray tims’ fund this Government has raised, Bennett Feinstein mittee, Senator BAUCUS, and others Nelson (FL) but it has not yet gotten to these vic- Biden Fitzgerald Nelson (NE) tims’ families. This tax relief offers who have worked with us to allow this Bingaman Frist Nickles real and immediate benefits. It has the victims’ relief effort to come to pass. Boxer Graham Reed Breaux Grassley Nothing can be more sincere and Reid promise that as American citizens give Brownback Gregg Roberts funds to charities, the funds from those heartfelt during this holiday season Bunning Hagel Rockefeller charities will not in turn be taxed as than to respond with this legislation Burns Harkin Byrd Hatch Santorum they get to the widows, the parents, or for families who have lost so much. Sarbanes I thank the Senate for its efforts. Campbell Hollings other relatives. It holds the promise Cantwell Hutchinson Schumer that there will be a refund given to f Carnahan Hutchison Sessions many of these families. Carper Inhofe Shelby DEPARTMENT OF DEFENSE AP- Chafee Inouye Smith (NH) Offering financial relief is little sol- PROPRIATIONS ACT, 2002—CON- Cleland Jeffords Smith (OR) ace given such enormous pain, but it is FERENCE REPORT—Continued Clinton Johnson Snowe Cochran Kennedy Specter of some help. Families who have buried Mr. DASCHLE. Madam President, it their loved ones are also paying mort- Collins Kerry Stabenow is my understanding we now have Conrad Kohl Stevens gages, tuition, and buying groceries. agreement to go directly to the vote on Corzine Kyl Thomas Craig Landrieu This is real help. the conference report to H.R. 3338. I ap- Thompson I am grateful to the Members of the Crapo Leahy Thurmond Daschle preciate everyone’s cooperation in that Levin Torricelli Senate who have helped pass this legis- Dayton Lieberman regard and I ask that the Senate pro- Voinovich lation. I am grateful to Chairman DeWine Lincoln ceed. For the interest of all Senators, Warner THOMAS of the House Ways and Means Dodd Lott this will be the last vote of the day. Wellstone Committee who has been with us as an Domenici Lugar The PRESIDING OFFICER. Is there Dorgan McConnell Wyden architect in its passage. further debate? NAYS—2 I express on behalf of all the families The Senator from West Virginia. for whom this means so much in this Gramm Mr. BYRD. I will take 30 seconds. I McCain holiday season their gratitude to all of had agreed, in the interest of letting you who have made this possible. I Senators catch their planes, to having NOT VOTING—4 yield the floor. the vote and then have my statement Akaka Ensign Bond Helms The PRESIDING OFFICER (Ms. concerning the homeland defense part CANTWELL). The majority leader. appear in the RECORD as though spoken The conference report (H.R. 3338) was Mr. DASCHLE. Madam President, I before the vote. That unanimous con- agreed to. thank both Senators from New Jersey sent was not agreed to and others Mr. REID. Madam President, I move for their extraordinary work in getting spoke. The Senator from Arizona to reconsider the vote. us to this point. This was not easy, and spoke. It was my understanding we Mr. LOTT. I move to lay that motion I am grateful to them for their persist- would all give up that privilege and we on the table. ence, their leadership, and their ef- would vote without speaking. Others The motion to lay on the table was forts. This would not have happened have spoken. I am not going to stand in agreed to. were it not for their direct involvement the way of Senators going home on this Mr. LOTT. Madam President, if I to this moment. I say the same to the occasion, so I want to make it clear I may take just one moment. I see Sen- Senators from New York for the tre- did not object in the beginning so ev- ator DASCHLE is getting ready to pro- mendous work they have done assisting erybody who had speeches could make pound some unanimous consent re- us in getting to this point as well. them. quests. The PRESIDING OFFICER. The Re- I am willing to give up my speech Let me take a moment to say to the publican leader. right now. It is a great speech, but I managers of the legislation and the Mr. LOTT. Madam President, I will will make it after the vote. I wanted to chairman and ranking member of the be brief because I know we want to fin- call it to the attention of the Senate committee, I know this has not been ish up the debate on the Defense appro- that I kind of begrudgingly agreed to easy. There have been a lot of great priations conference report and get a that request. ideas on both sides of the aisle as to recorded vote. There are Senators who The PRESIDING OFFICER. The how we could improve it or change it. would like that to occur sooner rather question is on agreeing to the con- You have been tenacious, you stuck than later, so I will not belabor the ference report. with it, and you produced a good piece point. Mr. DASCHLE. I ask for the yeas and of legislation that is important for our I am glad we worked out the agree- nays. country, important for our men and ment on the victims’ disaster of Sep- The PRESIDING OFFICER. Is there a women in uniform. tember 11. I appreciate the cooperation sufficient second? This very morning the President all the way around. One can tell by the There is a sufficient second. called and said he was pleased with the discussion that one of the reasons some The question is on agreeing to the result and he appreciates the leader- of these other meritorious items were concurrent resolution. ship the Senate gave in this area.

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00092 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S13865 I commend all of you, Senator Mr. MCCONNELL. I was simply going one piece for which there is general INOUYE, Senator STEVENS, and Senator to suggest that he modify his unani- agreement is the need to extend unem- BYRD, for the work that has been done mous consent request. I was not going ployment insurance. We did it three here. to make a speech. times in the early 1990s, recognizing I yield the floor. Mr. DASCHLE. I would be happy to that the limited regular benefit period The PRESIDING OFFICER. The ma- entertain the modification. of time was inadequate for a lot of jority leader. Mr. MCCONNELL. I was going to sug- those who are out of work. Mr. DASCHLE. Madam President, I gest the majority leader modify his Again, without getting into extended concur in the comments made by the unanimous consent request to adopt remarks, I would simply, by expla- Republican leader. We should note that one amendment on each side with re- nation, note that would be the intent this completes our work on all 13 ap- gard to liability only. of this unanimous consent request, propriations bills. I commend both the Mr. DASCHLE. Madam President, I which is to substitute economic stim- chair and the ranking member for their appreciate the recommendation and ulus with the 13-week extension. work in getting us to this point. This proposal made by the Senator from Mr. LOTT. Madam President, under was not easy, especially this year. It Kentucky. I know this has been the those conditions, I would have to ob- would not have happened were it not subject of a good deal of discussion. ject. for the tremendous effort made by each There is no doubt the issue of liability Let me just say that if we can set it of the subcommittee chairs. I note es- will be a matter that will have to be up in a way to have a rollcall vote on pecially the efforts of the Senator from addressed. But if we open it up to any that rather than a voice vote to make Hawaii on the Defense appropriations amendment at this late hour, there is that very substantial change, I think bill, the largest of all bills with which little likelihood we can complete our we need to do both, and therefore I we had to contend. work in time for us to be able to go to would have to object to that modifica- I congratulate them. I thank them. I conference before the holidays begin. tion. note, again, the great work they have For that reason, I would have to ob- Mr. DASCHLE. Madam President, I done in getting us to this point. ject. yield the floor. Mr. LOTT. I yield the floor. f f The PRESIDING OFFICER. Objec- UNANIMOUS CONSENT REQUEST— UNANIMOUS CONSENT REQUEST— tion is heard. H.R. 3210 H.R. 3529 The Senator from Hawaii. Mr. DASCHLE. Madam President, I Mr. LOTT. Madam President, I ask f have a unanimous consent request to unanimous consent that the Senate DEPARTMENT OF DEFENSE AP- propound at this time. There will be now proceed to the consideration of PROPRIATIONS ACT, 2002—CON- many other unanimous consent re- H.R. 3529, which is the stimulus pack- FERENCE REPORT quests made over the course of this age received from the House. I further Mr. INOUYE. Madam President, pur- afternoon. We will certainly notify ask unanimous consent that there be 60 suant to the unanimous consent agree- Senators as they are propounded so minutes for debate equally divided in ment, I would like to proceed with my that those who have an interest in a the usual form; further, I ask that at statements. the expiration or yielding back of that particular issue can be in the Chamber The PRESIDING OFFICER. The Sen- time, the bill be read a third time and when we make them. Let me begin. ator is recognized. I ask unanimous consent the Senate the Senate proceed to a vote on pas- Mr. INOUYE. Madam President, I am proceed to Calendar No. 252, H.R. 3210, sage of the bill, with points of order happy to rise today to offer my un- and the only amendment in order be a waived. qualified support for the conference Dodd-Sarbanes-Schumer substitute Before the Chair rules on this unani- agreement on H.R. 3338, the Depart- amendment, that the substitute be mous consent request, I add that if ment of Defense Appropriations Bill for considered and agreed to, the bill, as there is any additional debate time—if Fiscal Year 2002. amended, be read a third time and 2 or 3 hours would be needed—I will I am pleased to present the rec- passed, and the motion to reconsider be certainly amend my unanimous con- ommendations to the Senate today, as laid upon the table, with no inter- sent request to accommodate more de- division A of this bill. vening action or debate. bate. The recommendations contained The PRESIDING OFFICER. Is there The PRESIDING OFFICER. Is there herein are the result of lengthy nego- objection? objection? tiations between the House and Senate The Senator from Kentucky. Mr. DASCHLE. Madam President, I managers and countless hours of work Mr. MCCONNELL. Madam President, offer an alternative and make it a pro- by our staffs acting on behalf of all reserving the right to object—I will ob- posal that we amend the unanimous members. ject—I have a different approach in consent request made by the distin- The agreement provides $317.2 billion, mind on this which I would like to pro- guished Republican leader as the fol- the same as the House and Senate lev- pound. lowing: That the amendment include a els, consistent with our 302b alloca- The PRESIDING OFFICER. Objec- substitute amendment that I have at tions. tion is heard. the desk which would extend unem- As in all conference agreements, nei- Mr. DASCHLE. Madam President, ployment insurance coverage for 13 ther side, nor any individual member the Republican leader and I have weeks, and that the bill, as amended, had every issue go his or her way. It agreed that we would keep the remarks be read a third time and passed. represents a compromise. involving these unanimous consent re- Mr. LOTT. Madam President, reserv- It is one that protects the interests quests to a minimum at this point to ing the right to object, I want to make of both houses while clearly meeting accommodate those Senators who are sure I understand the proposal: That our national defense reponsibilities. still waiting to speak on the Defense we would not have a vote on that addi- For the information of all Senators, I appropriations conference report. I tion but to just include it in the pack- should point out that the bill provides would like to respect our earlier com- age. Is that correct? more funding for our men and women mitment to them that they would have Mr. DASCHLE. Madam President, we in uniform than was recommended by the opportunity to make their re- have already indicated, of course, to all either body. marks. But we will certainly entertain of our colleagues that we would not I want to note to all my collegues these unanimous consent requests have any additional rollcall votes that this would not have been possible without extended comments. I appre- today. We would have to accommodate without the tremendous cooperation ciate everyone’s cooperation in that re- this request with simply a voice vote that I have received from Senator STE- gard. on the substitute. VENS and his able staff led by Steve Mr. MCCONNELL. Madam President, Basically, what we are suggesting is Cortese with Ms. Margaret Ashworth, will the leader yield for a question? that since we cannot reach agreement Kraig Siracuse, Alycia Farrell, and Mr. Mr. DASCHLE. Yes. on the overall economic stimulus, the John Kem, on detail from DOD.

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00093 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S13866 CONGRESSIONAL RECORD — SENATE December 20, 2001 The Senate owes all of them a debt of keep our promises. In no small part we required. The bill reduces funding for gratitude. I want to also note the ef- see this as another recruiting and re- several programs that have been de- forts of my staff, Charlie Houy, David tention program. layed or are being reconsidered because Morrison, Gary Reese, Susan Hogan, In title two, the bill provides $105 bil- of the secretary’s strategic review, the Tom Hawkins, Bob Henke, Lesley lion for readiness and related pro- nuclear posture review, and the quad- Kalan, and Mazie Mattson who have de- grams. This is $8.2 billion more than rennial defense review. voted so much time to preparing the appropriated for fiscal year 2001. The The bill also makes adjustments that committee’s recommendations for this bill reallocates funding from the Sec- are in line with the reforms cham- bill. retary of Defense to the military serv- pioned by the administration: The Defense appropriations bill as ices for the costs of overseas deploy- A concerted effort was made at re- recommended by the conference com- ments in the Balkans. ducing reporting requirements in the mittee provides a total of This is the way the Pentagon funds bill; $317,623,747,000 in budget authority for the Middle East deployments. The con- The bill also reduces funding for con- mandatory and discretionary programs ferees have agreed to leave a small sultants and other related support per- for the Department of Defense. This amount in the appropriation for un- sonnel as authorized by the Senate. amount is $1,923,633,000 below the Presi- foreseen emergencies. As requested, the bill provides $100 dent’s request. For our investment in weapons and million for DOD to make additional The recommended funding is below other equipment, the recommendation progress in modernizing its financial the President’s request by nearly $2 includes $60.9 billion for procurement, management systems. billion because the Congress has al- nearly $500 million more than re- Finally, the bill places a cap on legis- ready acted to reallocate $500 million quested by the President. The funding lative liaison personnel which the Sec- for military construction and $1.2 bil- here will continue our efforts to recapi- retary of Defense has indicated are ex- lion for nuclear energy programs under talize our forces. cessive. the jurisdiction of the Energy Water The agreement fully supports the I would like to take a few minutes to Subcommittee. Army’s transformation goals and pur- discuss an item that some have mis- The total discretionary funding rec- chases much needed aircraft, missiles characterized. ommended in division A of this bill is and space platforms for the Air Force. The bill provides discretionary au- $317,206,747,000. This is less than $2 mil- For the Navy, the bill provides full thority to the Defense Department to lion below the subcommittee’s 302B al- funding for those programs that are on lease tankers to replace the aging KC– location. track and ready to move forward. 135 fleet. This is a program that is This measure is consistent with the In the case of shipbuilding, the con- strongly endorsed by the Air Force as objectives of this administration and ferees strongly support the need to ad- the most cost effective way to replace the Defense Authorization Conference dress our growing shortfalls in ship our tankers. Report which passed the Senate. construction. The agreement provides Despite what has been claimed, the In addition, we believe we have ac- more funding that in either House or language in the bill requires that the commodated those issues identified by Senate bill and $150 more than re- lease can only be entered into if the the Senate which would enhance our quested. Air Force can show that it will be 10 In some cases, contract delays have nation’s defense while allowing us to percent cheaper to lease the aircraft allowed the conferees to recommend stay within the limits of the budget than to purchase them. In addition, it reallocating funds for other critical re- resolution. stipulates that the aircraft must be re- quirements. Our first priority in this bill is to turned to the manufacturer at the end Included in that, the committee has provide for the quality of life of our of the lease period. recommended $700 million for procure- men and women in uniform. No business sector has suffered more ment to support our national guard and In that vein, we have fully funded a from the events of 9–11 than has our five percent pay raise for every mili- reserve forces. The conference funds 10 UH–60 heli- commercial aircraft manufacturers. tary member as authorized. The tragic events of that day have We recommend additional funding for copters for the National Guard and Army Reserve. It also provides four C– drastically reduced orders for commer- targeted pay raises for those grades cial aircraft. and particular skills which are hard to 130’s for our Air National Guard and Reserves. We have been informed that Boeing, fill. for example, will have to lay off ap- We believe these increases will sig- The agreement adds funding for addi- proximately 30,000 people as a direct nificantly aid our ability to recruit, tional trainer aircraft for the Navy. It consequence of the terrorist attack. We and perhaps more importantly, retain fully funds the requirements for the F– have provided funding to support the much needed military personnel. 22, the JSF and the F/A–18. We have also provided $18.4 billion for In funding for future investment for aircraft manufacturers as a result of health care costs. This is 46.3 billion research and development, the measure that tragedy. We are including funds elsewhere in more than appropriated in FY 2001 and recommends $48.9 billion, nearly $1.5 this bill to help in the recovery in New nearly $500 million more than re- billion more than the amounts appro- York and the Pentagon. The leasing quested by the president. priated for fiscal year 2001. Regarding This funding will ensure that tricare missile defense, the bills is very close authority which we have included in costs are fully covered. to the level requested by the President. Division A allows us to help assist It will also increase our military hos- Last week, the Pentagon announced commercial airline manufacturers pital funding to better provide for their that it was terminating the Navy’ area while also solving a long-term problem patients and, by providing funding for wide missile defense program. Addi- for the Air Force. ‘‘TRICARE FOR LIFE’’, we fulfill a tionally, we were informed that the I strongly endorse this initiative commitment made to our retirees over Pentagon is restructuring its space which was crafted by my good friend 65. based on infrared—low program. These Senator STEVENS with the support of This will ensure that those Ameri- two adjustments allowed the conferees several other Members, including Sen- cans who were willing to dedicate their to reduce funding for missile defense. ators CANTWELL, MURRAY, ROBERTS, lives to the military will have quality However, similar to the provision in and DURBIN. I believe it deserves the health care in their older years. the Senate and the authorization bill, unanimous support of the Senate. This is most importantly an issue of the committee provides $478 million in Today is December 20th. Nearly one fairness. additional funding that can be used for quarter of the fiscal year has passed. It fulfills the guarantee our nation counter terrorism programs. The Defense Department is operating made to the men and women of our This is a balanced bill that supports under a continuing resolution which military when they were on active the priorities of the administration and significantly limits its ability to effi- duty. the Senate. ciently manage its funding. We also believe it will signal to those In order to cut spending by nearly $2 I don’t need to remind any of my col- willing to serve today that we will billion, some difficult decisions were leagues that we have men and women

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00094 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S13867 serving half way around the world de- ers in the fleet, saving more than $3 billion tunity to bring to this floor several fending us. in repair and maintenance costs. If a cost- measures that will be brought up by Less than one percent of Americans benefit analysis favors another approach, we unanimous consent, and I hope with no would pursue that alternative. serve in today’s military. These few are America’s air refueling fleet is indispen- objection. One of those deals with the willing to sacrifice themselves for us. sable, and modernization is essential to fu- security of our ports. As it turns out, They deserve our support. ture mission success. The 767 is the right for the hundreds of ports across and One hundred days ago our Nation was platform to jumpstart tanker modernization, around our Nation where ships travel shocked and hurt by a surprise attack. and we are committed to leveraging our re- in and out of them every single week, This is the bill, Mr. President, that al- sources to make the best overall arrange- the security we provide for those ports lows us to respond to that attack. ment for our citizens. and for the people who live in the areas It is also the measure we need to JOHN P. JUMPER, around those ports is inadequate. show our military forces that we sup- General, USAF, Chief The opportunity for someone to bring port them. of Staff. terrorist devices into our ports and JAMES G. ROCHE, This bill is urgently needed to fight Secretary of the Air into heavily populated areas possibly is and win this war and to demonstrate to Force. very real. It is one that we currently the world our resolve. Ms. CANTWELL. Mr. President, I do not address well, and we need to. I urge all my colleagues to support also ask unanimous consent to have The Senate Commerce Committee, under the leadership of Senator HOL- this bill. printed in the RECORD information The PRESIDING OFFICER (Mr. about how the DOD process for review- LINGS, has reported out legislation, I CORZINE). The Senator from Wash- ing the need for the 767 tanker replace- believe unanimously, on port security. ington is recognized. ment was started over 2 years ago, cul- It needs to come before this body and Ms. CANTWELL. Mr. President, I add minating in a report and analysis of, to be considered before we ultimately my congratulations to the chairman of February 2001 that these tankers were adjourn. Secondly, on the issue of airport se- the subcommittee and the ranking in fact needed and not done behind curity, aircraft security has been de- member for their hard work on a very closed doors but the process was fol- bated and I think satisfactorily ad- important piece of legislation. lowed. I also ask unanimous consent to have There being no objection, the mate- dressed by the House and Senate and printed in the RECORD a letter by Air rial was ordered to be printed in the by the President. Many people in this part of the coun- Force Chief of Staff John Jumper and RECORD. as follows: try, and around the country, travel by Secretary of the Air Force James Planning for the Air Force replacement of Roche basically explaining in detail its KC–135 tanker fleet has been ongoing for railroad. We leave undone, at least at their need for the 767 tanker fleet and years. The DoD’s Joint Requirements Over- this moment, issues that ought to be why the activities and events after sight Committee (JROC) has validated a Mis- addressed with respect to rail security, September 11 have accelerated the in- sion Needs Statement for this replacement, the security of people who are trav- terest in the replacement options that culminating a two year DoD review process. eling on railroads as passengers around were a part of this legislation. In response, Boeing in February of 2001 our Nation. submitted a proposal to the Air Force for the Again, the Commerce Committee, DECEMBER 18, 2001. purchase of new 767 tankers—this is neither under the leadership of Senator HOL- EDITOR-IN-CHIEF, a new, nor a ‘‘behind closed doors’’ issue. The Washington Post, The Air Force Secretary and Chief of Staff LINGS, has reported out, I believe Washington, DC. have been visible and vocal (letters, press unanimously, legislation dealing with There being no objection, the letter statements) is their support for the need to rail security. It is an important issue, was ordered to be printed in RECORD, as begin to modernize the tanker fleet. More and not just for those of us in the follows: specifically, they have been clear on the de- Northeast corridor; it is an important sirability of leasing 767 tankers in order to DEAR EDITOR: Robert Novak’s Dec 16, 2001 issue for our Nation. And we know, as column, ‘‘Boeing Boondoggle,’’ wrongly im- get them deployed (and old high cost tankers the Presiding Officer does, there are retired) in operationally significant quan- plies the Air Force doesn’t have a position hundreds of thousands of people who on leasing Boeing 767s for use as tanker air- tities and within projected budgets over the next decade. travel literally every day through tun- craft. Our position, previously explained to nels that go in and out of New York, Mr. Novak, is clear: we need to modernize Ms. CANTWELL. Mr. President, I our aging tanker fleet, and we owe it to our yield the floor. under Baltimore, and under this city warfighters and taxpayers to consider all The PRESIDING OFFICER. The Sen- that are not too secure, are not well reasonable options, including leasing or buy- ator from Delaware. ventilated or well lit, and are not well ing 767s. Mr. CARPER. Mr. President, I rise protected. Air refueling enables America to project because we have passed the 13th con- This measure would help to address power anywhere in the world. Today, in the ference report on the 13 appropriations that, along with better surveillance of US-led global war on terrorism, that mission bills. our bridges, providing better and more is mostly done with an aircraft designed and As we prepare to return to our home adequate security aboard our trains. first built during the Eisenhower administra- My hope is that before we leave this tion. We have flown more than 3500 refueling States, everyone here in the Chamber sorties in Operation Enduring Freedom and and everyone in the Senate can find day, before the Senate sets this day, we more than 2700 refueling sorties in support of some aspect of the conference report on will have taken up this measure by air patrols over American cities since the Defense to which to object. unanimous consent and approve it in September 11 attacks. These operations, In the end, what we have to do is con- the Senate. along with a mission focus on homeland se- sider the work as a whole—as a com- There was objection a few moments curity, are forcing the Air Force to assess plete body of work—and make our ago to another unanimous consent re- accelerating replacement options. judgments on it as not any one single quest which was made with respect to Incorporating new 767 aircraft into our antiterrorism reinsurance. Other na- fleet will dramatically enhance America’s item or issue but the whole notion of aerial refueling capability. Benefits include how we protect our Nation’s interests tions around the globe have been the increased fuel offload, near-term aircraft across the globe. On that, this measure target of terrorist attacks, and damage availability, and mission realiability—all deserves my support, and has gotten has been suffered from those attacks with far lower support costs. The 767 has also my support, and obviously the support for many years. For us, fortunately, attracted the interest of Italy and Japan, al- of a majority of our colleagues. the experience of September 11 had lies with similar needs. As we dispose of the conference re- never visited this country before. We Should Congress approve a leasing option port on the Defense appropriations bill, have not had to trouble ourselves with to put new tankers in service, we will ana- I regret that we leave behind other determining how we provide ade- lyze business conditions and determine the most cost-effect modernization path avail- issues involving security for our coun- quately for insurance in the event of a able. Leasing may enable the Air Force to try at home. I want to mention those terrorist attack. avoid significant up-front acquisition cash today. Other countries deal with this dif- outlays, and it could allow us to accelerate I hope before we adjourn at the end of ferently. In Israel and the United King- retirement of the oldest, least reliable tank- this day, we will have had the oppor- dom, which have had terrorist attacks

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00095 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S13868 CONGRESSIONAL RECORD — SENATE December 20, 2001 for many years, those countries have ognized. He has time under the pre- and I worked very hard on homeland their own approach. In Israel, for ex- vious bill already, but I would like him security, which featured a lot of these ample, the country provides the insur- to be recognized as soon as I finish. matters in this legislation that will ance for the terrorist attacks. The The PRESIDING OFFICER. Is there quickly be approved. And it was real Banking Committee and the Commerce objection? money. This is not; this is an author- Committee both have sought to craft Mr. BROWNBACK. Reserving the ization. I am glad we are going to get legislation to say there ought to be a right to object, I have one unanimous this, but it would have been better had backstop with respect to antiterrorism consent request I would like to make we done Senator BYRD’s bill and mine. legislation, that initially the insurance regarding an immigration bill before, if Mr. President, I understand Senators companies themselves should put up possible, the Senator from West Vir- FRIST, KENNEDY, and GREGG have a money and absorb the losses, to the ginia speaks. substitute amendment at the desk, tune of $10 or $15 billion, but after that The PRESIDING OFFICER. The Sen- which is the text of S. 1765. I ask unani- there should be a sharing of the costs ator from West Virginia. mous consent that the amendment be that grow out of terrorist attacks. The Mr. BYRD. Reserving the right to ob- considered and agreed to, the motion Federal Government should share that. ject, the Senators may be unaware, but to reconsider be laid upon the table, It is unfortunate we were not able to under the previous order, I was to be that the bill, as amended, be read three proceed with this legislation today, recognized after the vote; right? times and passed, and the motion to re- and it is imperative we take it up as Mr. REID. Right. consider be laid upon the table. soon as we return. The PRESIDING OFFICER. It was Mr. BYRD. Mr. President, I reserve The last point is with respect to the understanding of the Chair that the right to object. I do not know what other unfinished business. When terror- Senators INOUYE and STEVENS were to this bill is about. ists attacked us on September 11, they be recognized after the vote. And the Mr. REID. Did the Senator from West didn’t just take people’s lives in New Senator agreed to delay his statement, Virginia hear my statement I just York, the Pentagon, and in Pennsyl- but the time had not been allotted to made? vania; they struck a body blow to our him specifically. Mr. BYRD. I could hardly hear any- economy. We are still reeling, to some Mr. BYRD. Mr. President, I know thing, as a matter of fact. extent, from that body blow. The work what my rights are, and I know what Mr. REID. What I did say, I say to the order said. I just have not pressed of the Federal Reserve on monetary Senator BYRD, is that this is the au- my rights. But I have no objection to policy helps us with respect to that thorization on which Senators KEN- the Senator making his request. I will body blow. NEDY and FRIST have worked. And I did The fact that energy prices have fall- not, however, stand aside for the Sen- say that the legislation you offered— en so much helps us with respect to ator’s request, but I will be here when with me being second in charge of that that body blow. The fact that we are he makes his request. legislation—was real money, appro- spending, frankly, a lot of money with The PRESIDING OFFICER. The Sen- priated money, which would have done deficit spending, in order to fight ter- ator from Nevada. these things that this only authorizes. Mr. REID. Is my consent granted rorism here and across the country and I am glad this is going to be author- then, Mr. President? around the world, provides stimulus to ized, but it is too bad we are not here The PRESIDING OFFICER. Is there the economy and helps to reduce the celebrating real money for the people. objection? length of time under which we will Without objection, it is so ordered. Mr. BYRD. I object to this bill. I ob- likely have a recession. ject to this being considered at this There is one other thing we could f time. have done, and ought to have done, be- UNANIMOUS CONSENT REQUEST— Mr. REID. Mr. President, I ask unan- sides the terrorism reinsurance pro- H.R. 3448 imous consent that my consent to lay posal that has been objected to, and Mr. REID. Mr. President, I ask unan- this bill down be vitiated. that was to pass an economic recovery imous consent that the Senate now The PRESIDING OFFICER. Is there plan. That, I think, had broad bipar- proceed to H.R. 3448, which is at the objection? tisan support by Democrats and Repub- desk. Without objection, it is so ordered. licans. It would have accelerated depre- The PRESIDING OFFICER. The The Senator from Oklahoma. ciation and gotten businesses back into clerk will report the bill by title. Mr. NICKLES. Mr. President, I will the business of making capital invest- The assistant legislative clerk read just state to my friend and colleague ment. It would have provided a payroll as follows: from West Virginia, he is very much tax holiday for businesses and employ- A bill (H.R. 3448) to improve the ability of my friend, and I know he has a Defense ees as well. It would have provided ex- the United States to prevent, prepare for, appropriations speech, and I look for- tensions of unemployment insurance and respond to bioterrorism and other public ward to hearing his comments on that, and helped folks on the health insur- health emergencies. and then I look forward to working ance side. It would have helped States The PRESIDING OFFICER. Is there with him to kind of show him some of that are reeling at this point in time. objection to proceeding to the measure the provisions on which Senators Unfortunately, we have not had the op- at this time? FRIST, KENNEDY, and GREGG, and others portunity to debate that today and to The Senator from Oklahoma. have worked. I believe there are 75 or pass a true bipartisan plan. Mr. NICKLES. I shall not object. I more cosponsors on this bill. I think it So we go home with half a loaf. We thank my colleague from West Vir- is a good bill, a bipartisan bill, strong- go home with half a loaf, but, as the ginia for his patience and tolerance, ly supported by both sides. Presiding Officer knows, we will come and also my colleague from Nevada for I will work with my colleague from back next month. And as we come back his assistance in moving this forward, West Virginia to acquaint him with next month, my hope is, if we have not as well as Senator DASCHLE and Sen- that. I hope and expect we can pass it dealt satisfactorily with railroad secu- ator LOTT. And I congratulate Senator a little later this afternoon. rity and port security today, if we have FRIST and Senator KENNEDY for the The PRESIDING OFFICER (Mr. DAY- not dealt with antiterrorism reinsur- work they have done in putting to- TON). Under the previous order, the ance today, as it appears we will not, gether this bipartisan Bioterrorism Senator from West Virginia is recog- that once we return we will take that Preparedness Act. nized. up. The PRESIDING OFFICER. Is there f I thank the Chair. objection to proceeding to this measure DEPARTMENT OF DEFENSE AP- The PRESIDING OFFICER. The Sen- at this time? ator from Nevada. Without objection, the Senate will PROPRIATIONS ACT, 2002—CON- Mr. REID. Mr. President, I ask unan- proceed to the measure. FERENCE REPORT imous consent that when I complete The Senator from Nevada. Mr. BYRD. Mr. President, I have my request for the unanimous consent, Mr. REID. Mr. President, I say also been more than patient. Under the ma- the Senator from West Virginia be rec- that the Senator from West Virginia jority leader’s order earlier, I was to

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00096 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S13869 have spoken on this subject, the De- dollar he asked for, $21 billion—and one This funding, to be provided in the fense Department appropriations bill. that met the many pressing needs for form of community development block Under his order, I was to be recognized our homeland defense: Improved hos- grants, will give businesses a much after the vote so as to accommodate pital capacity to respond to terrorist needed hand as they attempt to recover Senators that they might catch their attacks, wide distribution of smallpox from the terrorist attacks. Other fund- planes. vaccine, more border agents, improved ing will improve security at transpor- Now there were other consents of- safety at airports and train stations, tation hubs and reimburse hospitals in fered which I heard. I didn’t object to safer mail, better trained and equipped New York that provided critical care them, but I believe the record will police and firefighters. on September 11 and for many days show that I was to be recognized imme- That package, which was supported after. diately after the vote for the statement by a majority of this Senate in direct Some of the money will help children which I wanted to make on the home- response to the September 11 disaster, who continue to be haunted by the land defense section of the DOD appro- succumbed to partisan politics. It fell ghosts of the terrorist attacks. As do priations bill. I have been very patient. when Republicans in this Chamber the businesses and the communities, I understand the problems of the two raised a procedural 60-vote point of these children need to be made whole leaders. I have been majority leader be- order against the provision because again. This money will assist in that fore I have been minority leader, and I they believed it was too expensive. effort. have been majority whip. I understand They were within their rights to ob- As part of this supplemental alloca- tion, the Defense Department will re- all their problems. This is the end of ject. They were within their rights to ceive an additional $3.5 billion. When the year. Everybody wants to get away propose a 60-vote point of order. But I included with the funding in the reg- for Christmas. I don’t want to interject don’t understand how we can place an ular Defense Appropriations bill, the myself in between someone’s wish to arbitrary price tag on protecting the Pentagon will receive a $43 billion in- catch a plane. But I have been very pa- safety of our citizens. crease over last year. This is the single tient. I have let other consent orders Never in my memory can I recall a largest one-year increase in Defense come up without objecting because my time when Congress became so partisan spending in more than two decades. It over a disaster response, whether it be speech isn’t all that important. But I gives the military the resources nec- wanted to make it. from earthquakes, floods, tornados, essary to battle terrorism overseas. It Now we are hearing consents offered fires, never before can I remember our makes sure that our brave men and for bills. I don’t know who is watching lining up so rigidly along political women who put themselves in harm’s the place on this bill. The distin- party lines when it came to providing way will not fall short because of fiscal guished Senator from Kansas is going the American people with funds to re- constraints. This package also provides to make a request on a bill. I want to cover from disaster. for $775 million for repairs and recon- be here when he makes it. He is enti- Unfortunately, the Senate minority struction efforts at the Pentagon. As tled to make his request. But time is and the White House used the 60-vote we rebuild Lower Manhattan, we must fast fleeting when this Senator is going point of order against the homeland de- also repair the Pentagon. to stand aside and just continue to fense package. As I say, they have a Finally, we have provided in this al- wait and let everybody else speak, let perfect right to make that point of location $8.3 billion for defense efforts everybody else object to the order of order. That is within the rules. here at home. In the days and weeks speaking, and just stand aside and let We all recognize that you can’t beat that have followed the terrorist at- it be done. 60 votes when you only have 51 at most tacks, committees on both sides of this That is not a big thing. It won’t on this side. Our Republican friends Capitol have heard from experts, from change the history of the world one didn’t want to help us get the 60 votes. federal, state, and local officials, and way or the other. But I just want to So it must be dismaying to the people from regular Americans who are con- say this: Next year, the chairman of who have heard so much about the cerned for their safety at home. We the Senate Appropriations Committee pledges of bipartisanship, so much cannot ignore the gaps in our home- is not going to stand aside for every about a new tone in Washington, to see land defenses. We cannot put off until other Senator’s convenience in times what should have been a united, bipar- tomorrow investments that must be like this. tisan approach to defending our home- made today. The $8.3 billion for home- I shall proceed. land dissolve into a partisan dispute. land defense that is included in this The Senate has considered the con- That is truly a shame. Since that legislation takes immediate steps to ference report for the fiscal year 2002 vote, however, we have stepped back bolster our local police and fire depart- Defense Department appropriations and worked on the smaller compromise ments. It provides critical funding to bill. It is a good bill, but it could have plan that is before the Senate this expand hospital capacity and to train been much better. As Senators are afternoon. While it is not as com- doctors and nurses on what to do in aware, included in this legislation is prehensive as the plan first proposed case of a biological, chemical, or nu- the final allocation of the $40 billion earlier this month, the allocation of clear attack. The funding closes some emergency supplemental funding ap- the $20 billion emergency supplemental of the holes in our Northern Border and proved by this Senate just 3 days after funding in this legislation provides in our seaports. Under the leadership of the tragic attacks on the World Trade support and resources that are needed the distinguished Senator from South Center Towers and on the Pentagon. right now for homeland defense, for na- Carolina, Mr. HOLDINGS, we had $50 bil- Quite simply, we wanted to respond to tional security, and for the recovery of lion for port security. These things the attacks that occurred on Sep- New York City and the other commu- were knocked out under that 60-vote tember 11 and take steps to prevent at- nities directly affected by the Sep- point of order. We are not going to for- tacks from occurring in the future. We tember 11 attacks. get that. It provides funds for improved didn’t just want to respond to the at- For those communities, the supple- cockpit security, to hire additional sky tacks that had already occurred, but mental provides $8.2 billion. This marshals and to purchase explosives we wanted to take steps that could pre- brings the total commitment to the re- detection equipment. It provides funds vent attacks from occurring in the fu- covery effort to $11.2 billion, when pre- for the Postal Service to protect postal ture. viously released funds are included. workers and purchase equipment to Just a few days ago, the Senate had The bulk of this funding, $4.35 billion, make our mail safer. The funding that before it a broader package, one that will fund debris removal at the World we have included in this package will fulfilled the $20 billion commitment Trade Center site, repair public infra- help Americans to know that we are made by the President and the Con- structure such as the damaged subways not standing idly by, ignoring what are gress to New York and the other at- and commuter trains, and assist indi- such obvious needs in our homeland de- tacked communities; one that provided viduals with expenses for housing, bur- fenses. We will take steps today to pro- the Defense Department with substan- ial, and relocation. Another $2 billion tect Americans and to try to prevent tial funding for its mission overseas— will work to restore the economic the tragedy we witnessed in September we wanted to give the President every health of the area. from occurring again.

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00097 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S13870 CONGRESSIONAL RECORD — SENATE December 20, 2001 This package is a compromise. It is and they have certainly set a high New York/New Jersey Ferry Improve- not a be-all and end-all package. This standard for the years to come. ments—$100 million for critical expansion of money will not fill all of the gaps that I also want to thank Edie Stanley interstate ferry service between New York and Kate Eltrich for their assistance, and New Jersey. Prior to the September 11th exist. But what this package will do is attacks, 67,000 daily commuters used the move us forward. It will fund those ini- as well as the staffs of our 13 sub- PATH transit service that was destroyed. tiatives that we need to begin now, and committees. These appropriations bills Hospital Reimbursement—$140 million to re- lay the groundwork for priorities that are not written by magic. Rather they imburse the hospitals of New York that pro- every Senator knows await us in the are the product of hard work, deter- vided critical care on September 11th and the spring. mination, and an understanding of the weeks and months that followed. I want to thank my good friend, Sen- Workers Compensation/Job Training—$175 intricacies of each piece of legislation. million that would help New York process ator STEVENS, for his work on this The Senate is blessed to have such a workers compensation claims for the victims package. We would not be standing fine group of men and women dedicated of the September 11th attacks. $59 million is here today if not for his steadfast ef- to the service of the nation. provided for job training, environmental forts. I also want to thank our House I also want to thank members of my health and other programs. counterparts, Chairman BILL YOUNG of personal staff who have been invalu- Federal Facilities—$325 million for the costs Florida. My, what a fine Congressman able to me. My Chief of Staff, Barbara of keeping Federal agencies operating that were in or near the World Trade Center, such he is and a fine chairman of the Appro- Videnieks, may Administrative Assist- as the Social Security Administration, the priation Committee now. I am sure ant, Ann Adler, my Legislative Direc- Occupational Safety and Health Administra- that BILL YOUNG wanted to do more, tor, Jane Mellow, my Press Secretary, tion, the Pension and Welfare Benefits Ad- but under the constraints that were Tom Gavin, my legislative assistant, ministration, the Commodity Futures and upon him, he could not do more. David McMaster, and the entire Byrd Trading Commission, the Secret Service, the I also thank Congressman DAVID team have done an outstanding job on Bureau of Alcohol, Tobacco and Firearms, the Securities and Exchange Commission, OBEY of Wisconsin. He is always a stal- these bills. the Internal Revenue Service, the U.S. Mar- wart. He stood up for homeland de- Mr. President, the fiscal year 2002 De- shals Service, the EEOC, the General Serv- fense. He tried in the House to move it partment of Defense appropriations bill ices Administration, the Food and Drug Ad- forward and increase it, but he didn’t is a good bill. I urge all Senators to ministration, and the National Labor Rela- have the votes. They and their staffs, support it. tions Board. led by Jim Dyer and Scott Lilly, Mr. President, I ask unanimous con- Emergency Highway repairs—$85 million for damaged roads in New York City, including worked closely with us to develop this sent to have printed in the RECORD a $10 million in FEMA for local roads. package, and I appreciate their com- document entitled ‘‘Compromise on $20 Mental Health Service for Children—$10 mil- mitment to this successful conclusion. Billion Defense/New York/Homeland lion that would help New York schools pro- As I mentioned earlier, with the Sen- Defense Funding.’’ vide mental health services to the children ate’s passage of this conference report, There being no objection, the mate- of the victims of the World Trade Center Congress will have completed work on rial was ordered to be printed in the bombing. Law enforcement reimbursements—$229 mil- each of the 13 individual appropriations RECORD, as follows: lion for New York ($71.8 million), New Jersey bills. I congratulate Senator INOUYE COMPROMISE ON $20 BILLION DEFENSE/NEW ($50.7 million), Maryland ($39 million) and and Senator STEVENS, and their staffs, YORK/HOMELAND DEFENSE FUNDING Virginia ($62.5 million) and Pennsylvania ($5 Charlie Houy and Steve Cortese, for The amendment allocates $20 billion as fol- million) to improve counter terrorism capac- crafting what I believe is a good De- lows: ity of law enforcement and fire personnel for fense bill. I also am pleased that we Defense: $3.5 billion ($3.8 billion below States directly impacted by the attacks on were able to pass the thirteen indi- President). September 11th. $68 million is provided for New York/NJ/DC/MD/VA: 8.3 billion ($1.9 the Crime Victims Fund. vidual bills on a partisan basis, with an billion above the President). District of Columbia—$200 million for the average vote in the Senate of 91–6. We Homeland Defense: 8.3 billion ($3.9 billion District and for the Washington Metro for did not have to resort to an omnibus above the President). improved security. bill as has been the case in some years UI/COBRA: 0.0 billion ($2 billion below Small Business Disaster Loans—$150 million. past. And we worked to protect the President). National Monuments Security—$80 million prerogatives of Congress. We did not When combined with the $20 billion allo- for improved security at national parks and cated by the President, the amendment re- monuments such as the Statue of Liberty invite the White House to sit at the sults in the following allocation of the $40 and the Washington Monument, the Smith- table and negotiate these bills. That is billion approved in the September 18th sup- sonian, the Kennedy Center and other facili- not the role of the executive branch, plemental (P.L. 107–38): ties. nor should it be. The Constitutional Defense: $17.5 billion ($3.5 billion below the Department of Defense—$3.5 billion, in- Framers vested the power of the purse President). cluding funding to repair the Pentagon. New York/NJ/DC/MD/VA: 11.2 billion ($1.8 Homeland Defense ($8.3 billion): in this legislative branch—the people’s Examples follow: branch—and we have a firm grasp on billion above the President). Homeland Defense: 9.8 billion ($4.0 billion Bioterrorism/Food Safety $3.0 billion, in- the strings. I only hope that Congress above the President). cluding $479 million for food security: never sees fit to loosen that hold and Foreign Aid allocated by President: 1.5 bil- Provides $1.0 billion for upgrading our give away what is the greatest single lion (same as the President). state and local public health and hospital in- UI/COBRA: 0.0 billion ($2 billion below the frastructure. power afforded to this branch of gov- Provides $156 million for CDC capacity im- President—in stimulus). ernment by the Framers, in their great provements and disaster response medical Unallocated: 0.0 billion ($0.3 billion below wisdom. systems at HHS. the President). Provices $244 million for security improve- Mr. President, before closing, I want Highlights of the $20 billion: ments and research at the CDC and NIH and to thank the members of my com- New York and other communities directly mittee staff who have been so earnest for mental health services. impacted by September 11th attacks ($8.2 bil- Provides $593 million for the National and dedicated in their efforts this year. lion): Examples follow: Pharmaceutical Stockpile. My staff director, Terry Sauvain, and FEMA Disaster Relief, which funds debris Provides $512 million to contract for small- my deputy staff director, Charles removal at the World Trade Center site, re- pox vaccine to protect all Americans. Kieffer, have done a remarkable job on pair of public infrastructure such as the USDA Office of the Secretary: $81 million damaged subway, the damaged PATH com- these bills. They stayed at night. They for enhanced facility security and oper- muter train, all government offices and pro- ational security at USDA locations. stayed into the wee hours of the morn- vides assistance to individuals for housing, Agricultural Research Service: $40 million ing. They worked on the nuts and burial expenses, and relocation assistance, for enhanced facility security and for re- bolts. They worked and they grappled receives $4.35 billion. search in the areas of food safety and bioter- with problems and answered questions Community Development Block Grants—$2 rorism. from disgruntled Senators and people billion to help New York restore their econ- Agricultural Research Service Buildings on the outside and people on the inside. omy. and Facilities: $73 million for facility en- Amtrak Security—$100 million for security hancements at Plum Island, NY, and Ames, I don’t see how they have been able to in Amtrak tunnels. IA, which includes funding necessary to com- maintain their sanity. I congratulate Mass Transit Security—funding of $105 plete construction on a bio-containment fa- them for the good work they did. This million for improving security in the New cility at the National Animal Disease Lab- is their first year in these positions, York and New Jersey subways. oratory at Ames, IA.

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00098 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S13871 Animal and Plant Health Inspection Serv- $256 million for improved security for the the concerns on both sides of the aisle ice: $119 million for enhanced facility secu- Legislative Branch. and both sides of the Capitol. We think rity, for support of border inspections, for Nuclear Non-proliferation—$226 million for this measure can pass expeditiously, as pest detection activities, and for other areas the safeguarding and acquisition of Russian soon as the House returns. related to bio-security and for relocation of and former Soviet Union missile nuclear ma- Following the terrorist attacks of a facility at the National Animal Disease terials and to help transition and retrain Laboratory. Russian nuclear scientists. Sept. 11, we have worked hard to im- Food Safety Inspection Service: $15 million Border Security—$0.7 billion. prove the security of America’s trans- for enhanced operational security and for $135 million for Customs for increased in- portation system, starting with the implementation of the Food Safety Bio-Ter- spectors on the border and for construction airline security bill just signed into rorism Protection Program. of border facilities, with emphasis on the law. However, protecting America from Food and Drug Administration: $151 mil- northern border. terrorist threats is only as effective as lion for food safety and counter-bioter- $549 million for the Immigration and Natu- the weakest line of defense. That rorism, including support of additional food ralization Service. means every mode of transportation safety inspections; expedited review of drugs, The PRESIDING OFFICER. The Sen- vaccines, and diagnostic tests; and enhanced must be secured, including maritime physical and operational security. ator from South Carolina. transportation. State and Local Law Enforcement—$400 mil- Mr. HOLLINGS. First, let me com- The United States has more than lion. mend the Senator from West Virginia. 1,000 harbor channels and 25,000 miles FEMA firefighting—$210 million to improve Over the years, I have seen him accom- of inland, intracoastal, and coastal wa- State and local government capacity to re- plish many feats. None would be more terways. Those waterways serve 361 spond to terrorist attacks. outstanding than what he has done on ports and have more than 3,700 termi- Postal Service—$500 million to provide homeland security for the City of New equipment to cope with biological and chem- nals handling passengers and cargo. ical threats such as anthrax and to improve York. Like Horatio at the bridge, he The U.S. marine transportation system security for Postal workers. stood there against all forces, particu- each year moves more than 2 billion Federal Antiterrorism Law Enforcement (ex- larly with respect to the executive tons of domestic and international cluding amounts for New York)—$1.7 billion. branch, and otherwise, and made sure freight, imports 3 billion tons of oil, $745 million for the FBI. we at least got some semblance of transports 134 million passengers by $19 million for the U.S. Marshals. homeland security started. It is on ac- $78 million for Cyber security. ferry, and hosts more than 7 million $31 million for Federal Law Enforcement count of Senator BYRD of West Vir- cruise ship passengers. Of the more Training Center for training of new law en- ginia. than 2 billion tons of freight, the ma- forcement personnel. Mr. BYRD. Mr. President, I thank jority of cargo is shipped in huge con- $16 million for the Bureau of Alcohol, To- the Senator for his kind words. I want tainers from ships directly onto trucks bacco and Firearms. to say this: If I were out in the streets and railcars that immediately head $60 million for overtime and expanded of a big city and, for some reason, got onto our highways and rail systems. aviation and border support for Customs. into a street brawl, I would want Sen- $73 million for the Secret Service. However less than 2 percent of those $209 million for increased Coast Guard sur- ator HOLLINGS with me. If that ever containers are ever checked by Cus- veillance. happened to me, I would say: Senator toms or law enforcement officials. The $95 million for Federal courts security. HOLLINGS, where is he? He is the man I volume of maritime trade is expected $70 million for Justice Department Legal want with me in a tough situation. to more than double by the year 2020, Activities. Mr. HOLLINGS. And if I were lost on making maritime security even more $109 million for EPA for anthrax cleanup a lonely, dusty road amongst the hills, costs and drinking water vulnerability as- important for the future. This is a gap- sessments. I would want Senator BYRD with me. ing hole in our national security that $66 million for EPA for bioterrorism re- f must be fixed—and it must be fixed be- sponse teams and EPA laboratory security. fore enemies of the United States try PORT AND MARITIME SECURITY $25 million for the FEMA Office of Na- to exploit our weakness. ACT OF 2001 tional Preparedness. Before discussing the specifics of our $30 million for the IRS. The PRESIDING OFFICER. The Sen- bill, I want to read an excerpt from a $27 million for Olympic security. ator from South Carolina. Airport/Transit Security—$0.6 billion, includ- chilling story published October 8 in ing: Mr. HOLLINGS. Mr. President, under the The Times of London: $175 million for Airport Improvement the unanimous consent agreement, can Intelligence agencies across the world are Grants. we turn to S. 1214 and ask the clerk to examining Osama bin Laden’s multimillion $308 million for FAA for cockpit security, report? [dollar] shipping interests. He maintains a sky marshals and explosives detection equip- The PRESIDING OFFICER. The secret fleet, under a variety of flags of con- ment. clerk will state the bill by title. venience, allowing him to hide his ownership $50 million for FAA research to expedite and transport goods, arms, drugs, and re- deployment of new aviation security tech- A bill (S. 1214) to amend the Merchant Ma- cruits with little official scrutiny. nologies. rine Act of 1936 to establish programs to en- Three years ago, nobody paid much atten- $18 million for transit security. sure greater security for U.S. Seaports, and tion to a crew unloading cargo from a rust- $50 million for Essential Air Service. for other purposes. ing freighter tied up on the quayside in Port Security improvements—$209 million, in- The PRESIDING OFFICER. Under Mombasa, Kenya. The freighter was part of cluding $93 million for DOT and $116 million the previous order, the Senator from Osama bin Laden’s merchant fleet and the for Customs. South Carolina is recognized for 5 min- crew were delivering supplies for the team of Nuclear Power Plant/Lab/Federal Facility Im- utes. suicide bombers who weeks later would blow provements—$0.8 billion. up the U.S. embassies in Kenya and Tan- $143 million for Energy for enhanced secu- Mr. HOLLINGS. In my 5 minutes, I zania. Bin Laden’s covert shipping interests rity at U.S. nuclear weapons plants and lab- thank the distinguished Senator from were revealed at the trial of the bombers, oratories. Arizona, my ranking member—this is but until now security services have been $139 million for the Corps of Engineers to really a bipartisan initiative—Senator slow to track down how many vessels he op- provide enhanced security at over 300 critical GRAHAM of Florida who has been a erates. dams, drinking water reservoirs and naviga- leader in this regard and also Senator Lloyd’s List International reported tion facilities. $30 million for the Bureau of Reclamation HUTCHISON of Texas. that a NATO country’s intelligence for similar purposes. I also thank the distinguished direc- service has identified more than 20 $36 million for the Nuclear Regulatory tor of the Commerce, Science, and merchant vessels believed to be linked Commission to enhance security at commer- Transportation Committee, Mr. Kevin to Osama bin Laden. Those vessels are cial nuclear reactors. Kayes; Mr. Carl Bentzel, the expert on now subject to seizure in ports all over $50 million for security at the White port security who has been working on the world. Some of the vessels are House. this over the past several years; and $26 million for GSA and the Archives to thought to be owned outright by bin improve federal building security. Mr. Matthew Morrissey. Laden’s business interests, while oth- $109 million for NASA for security up- We actually reported the bill before ers are on long-term charter. grades at the Kennedy, Johnson and other September 11 of this year. We have Several weeks ago, a suspected mem- space centers. been working diligently to take care of ber of the Al Qaeda terrorist network

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00099 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S13872 CONGRESSIONAL RECORD — SENATE December 20, 2001 was arrested in Italy after he tried to interview us and check our bags. The The Interagency Commission on stow-away in a shipping container inspection rate is 100 percent. At our Crime and Security at U.S. Seaports heading to Toronto. The container was land border crossings, every single car issued a report in September 2000 that furnished with a bed, a toilet, and its and truck driver is stopped and inter- said security at U.S. seaports ‘‘ranges own power source to operate the heater viewed, or at least reviewed by the fed- from poor to fair.’’ Let me repeat that: and recharge batteries. According to eral government. Again, the inspection 17 federal agencies reviewed our port the Toronto Sun, the man also had a rate is 100 percent. However, at a U.S. security system and found that it is in global satellite telephone, a laptop seaport, a person has a 98 percent poor shape. computer, an airline mechanics certifi- chance of importing a 48–foot truck- According to the Commission: load of cargo with no inspection at all. cate, and security passes for airports in Control of access to the seaport or sen- Canada, Thailand and Egypt. One marine container can carry more sitive areas within the seaports is often lack- These two stories really bring home heroin than is used in the United ing. Practices to restrict or control the ac- this issue of seaport security. Except States in one year. Some of these con- cess of vehicles to vessels, cargo receipt and for those of us who live in port cities tainers can carry as much as 30 tons, or delivery operations, and passenger proc- like Charleston, Americans often do 60,000 pounds of cargo. A medium sized essing operations at seaports are either not not think about their ports—the ports tanker can carry as much as 32 million present or not consistently enforced, increas- that load industrial and consumer gallons of petroleum or hazardous ma- ing the risk that violators could quickly re- terials. Nearly one-quarter of all haz- move cargo or contraband. Many ports do goods onto trucks and railroad cars not have identification cards issued to per- heading directly to their hometowns. ardous materials are moved via water, most of it in bulk form via huge tank- sonnel to restrict access to vehicles, cargo Therefore, security provided through receipt and delivery operations, and pas- our seaports ultimately affects land- ers. These shipments of oil or haz- senger processing operations. locked communities in the heartland of ardous materials—most of them car- At many seaports, the carrying of firearms the United States. Of the cargo im- ried by foreign vessels—are especially is not restricted, and thus internal conspira- ported and exported into the United dangerous targets for terrorists. Fol- tors and other criminals are allowed armed States, 95 percent arrives through our lowing the terrorist attacks of Sep- access to cargo vessels and cruise line termi- seaports; the balance is shipped tember 11, we must take action to bet- nals. In addition, many seaports rely on pri- vate security personnel who lack the crime through land and air borders. The po- ter secure our maritime borders. The Congress recently approved a prevention and law enforcement training and tential damage and destruction that new law that spends $3.2 billion to im- capability of regular police officers. can be accomplished through security prove security at our airports. The The report also found that port-re- holes at our seaports potentially ex- highway reauthorization bill—TEA–21 lated businesses did not know where to ceeds any other mode of transpor- passed in 1998—directed $140 million a report cargo theft and other crimes, tation. And yet we have failed to make year for five years to improve roads and that federal, state and local law seaport security a priority. and security infrastructure at our land Many of our busiest seaports are not enforcement agencies responsible for a borders. We annually fund the Border port’s security rarely meet to coordi- only near large cities, they are in the Patrol to guard against illegal entry at core of cities like Charleston, Boston, nate their work. our land borders. At U.S. seaports, the That is what our legislation does—it Miami, and Seattle. These seaports federal government provides officers have been the historic hubs of eco- creates mechanisms to integrate all from the U.S. Coast Guard, U.S. Cus- these different security agencies and nomic growth, and, in some cases, they toms Service, and the Immigration and have existed for close to four centuries. their security efforts at our seaports Naturalization Service—but the federal and the railways and highways that By comparison, our rail infrastructure government invests nothing in security is 150 years old and most of our avia- converge at our seaports. Our seaport infrastructure at our seaports. We security bill also directly funds more tion infrastructure is less than 60 years leave that up to the state-controlled old. The port areas in many cities have Customs officers, more screening port authorities and private marine equipment, and the building of impor- become increasingly attractive places terminal operators. Thus, we have es- to live because many people want a tant security infrastructure. sentially abrogated the federal respon- Each agency is good at what they do view of the water, and to live near the sibility of our international seaport coast. So we are facing a major prob- individually. But they will be even borders to states and the private sec- stronger working together, sharing in- lem: the number of people who want to tor. live close to the waterfront is growing formation and tactics, and coordi- Like airline security, seaport and nating security coverage at our sea- rapidly, but the open nature of our sea- international border security is one of ports exposes them to risks associated ports. More teamwork between these the prime responsibilities of the federal federal, state and local agencies—along with maritime trade, including the government. We must meet the chal- with our security partners in the pri- transport of hazardous materials. lenge head-on with enough resources to vate sector—will produce a more secure Most Americans would be surprised address these serious issues of national seaport environment that is stronger to discover there is no unified federal security, and to help our partners at than the sum of each agency’s indi- plan for overseeing the security of the the state and local levels protect their international borders at our seaports. own communities. While these security vidual efforts. And that’s what seaports are: inter- holes at our seaports may be less obvi- S. 1214, the Port and Maritime Secu- national borders that must be pro- ous to the public, they do exist. Be- rity Act of 2001, requires the Secretary tected as well as our land borders with cause of the magnitudes of the cargoes, of Transportation to chair a National Canada and Mexico. Yet we have failed the proximity of cargo delivery to Maritime Security Advisory Com- to make them secure. The U.S. Coast large populations, and the transport- mittee. The Secretary is required to re- Guard and Customs Service are doing ability that water confers to certain quest participation of the U.S. Customs an outstanding job, but they are hazardous materials or oil, seaports Service and invite the participation of outgunned. In the year 2000, we im- lacking adequate security are more other federal agencies with an interest ported 5.5 million trailer truckloads of vulnerable to attack and sabotage than in crime or threats of terrorism at U.S. cargo. Due to that volume, seaports, our airports or land borders. seaports. The bill also authorizes the according to the Customs Service, are A couple years ago, Senator BOB establishment of subcommittees, in- only able to inspect between 1 to 2 per- GRAHAM convinced President Clinton cluding a subcommittee comprised of cent of containers. In other words, po- to appoint a commission to look at sea- Federal, State, and local government tential terrorists and drug smugglers port security. At the time, the main law enforcement agencies to address have a 98 percent chance of randomly focus of port security was stopping ille- port security issues, and law enforce- importing illegal and dangerous mate- gal drugs, the smuggling of people, and ment-sensitive matters. rials. cargo theft. While those problems still The Committee is required to advise When traveling by airplane, we walk exist, the new—and very real—threat on long-term solutions for maritime through metal detectors, our luggage is of terrorism strikes right at the heart and port security; coordination of in- X-rayed, and Customs officials may of our national defense. formation-sharing and operations

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00100 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S13873 among federal, state and local govern- the Director of the FBI, ensure that all locking marine containers. These ments, and area and local port and har- area maritime counter-terrorism and amendments will contribute greatly to bor security committees; conditions for incident contingency plans are re- increasing security at our seaports. maritime security loan guarantees and viewed, revised, and updated no less Ports, terminals, waterfront facili- grants; and the development of a Na- than once every three years. The Sec- ties, and adjacent facilities will be re- tional Maritime Security Plan. Given retary shall ensure that local port se- quired to immediately implement in- the varied nature and geographical curity committees conduct annual sim- terim security measures, including se- structure of our port system, it will be ulation exercises for all such plans, and curing their perimeters. The Secretary important to consider private sector actual practice drills at least once of Transportation will then prescribe input. A one-size-fits-all approach will every three years. The plans should be regulations for the aforementioned not work because we are looking at a comprehensive and address terrorist parties to follow when designing the re- wide variety of waterside facilities and threats to waterfront facilities and ad- quired maritime security plans. An im- maritime transportation-related infra- jacent areas, and also cover elements portant point is that the regulations structure. of prevention and protection as well as will require ports to control and limit The bill will mandate, for the first response. I would hope that the Sec- personnel access to security-sensitive time ever, that all ports and water- retary would take steps to ensure that areas. Ports also will be required to front facilities have a comprehensive area maritime counter-terrorism and limit cars and trucks in security-sen- security plan approved by the Sec- incident contingency plans are coordi- sitive areas, restrict firearms and other retary of Transportation. An element nated with security plans. weapons, coordinate local and private of port security often overlooked are The bill creates standards and proce- law enforcement, and develop an evac- the intermodal means for transporting dures for training and certifying mari- uation plan. While the bill requires se- cargo from the ships: railroads, high- time security professionals. The bill re- curity programs to be individually tai- ways, and barges. The bill requires that quires the Secretary of Transportation lored due to the varied nature of dif- all the modes of transportation con- and the Federal Law Enforcement ferent ports, the Department of Trans- verging at the port be covered by a Training Center, ‘‘FLETC,’’ to estab- portation regulations will still require port’s security plan. To make the en- lish a Maritime Security Institute for certain elements to be incorporated. In tire waterfront environment more se- training security personnel, in accord- implementing new regulations, I would cure, any facility that might pose a ance with internationally recognized hope that the Department would re- threat to the public must tender secu- law enforcement standards. I look for- view the feasibility of establishing a rity plans to the Coast Guard for re- ward to working with the Department nationwide credentialing process. If we view and approval. of Transportation and the FLETC to can harmonize identification proce- However, we will do more than just dures, we can eliminate duplication mandate security plans. We will have establish an Institute to strengthen security experts to assess waterfront and professionalize maritime law en- and reduce costs. The Secretary of Transportation will and port security, and provide those as- forcement and security forces. I have write regulations to designate con- sessments to the individuals in charge worked with FLETC to establish a fa- trolled access areas in the Maritime of making security plans. Assessment cility in Charleston, South Carolina to Facility Security Plan for each water- information will be invaluable in help- train Border Patrol personnel. I also front facility and other covered enti- ing the industry use the best informa- look forward to working with the Sec- ties, and require ports to limit access tion in order to complete effective se- retary and FLETC to establish the to security-sensitive information, such curity plans. The bill requires the Sec- Maritime Law Institute. retary to incorporate existing pro- The legislation requires the Sec- as passenger and cargo manifests. The grams and practices when reviewing retary of Agriculture, Secretary of the regulations may require physical and approving security plans. The De- Treasury, Secretary of Transportation, searches of persons entering controlled partment of Transportation will have and the Attorney General to work to- access areas or exiting such areas, se- to take into account the different secu- gether to establish shared dockside in- curity escorts, and employment his- rity practices of our different ports. spection facilities at seaports for Fed- tory and criminal background checks The Department must recognize and eral and State agencies. At some U.S. for individuals with unrestricted access harmonize existing security practices ports, federal investigators and inspec- to controlled areas or sensitive infor- to avoid duplicating costs. However, tors do not have any space available to mation. An individual will be eligible recognition of existing practices should conduct inspections, and they have to to work in such positions if they meet not require the Department to endorse route the cargo to other places before the criteria established by the Sec- or approve faulty security. inspection. In other words, it would be retary, and a background check does At the seaport level, the bill will es- similar to Customs officials at JFK air- not reveal a felony conviction within tablish local port security committees port asking arriving international pas- the previous 7 years, or release from at each U.S. seaport. The section would sengers to take a cab to the Customs prison during the previous 5 years. An require membership of these commit- headquarters downtown in order to individual that otherwise may have tees to include representatives of the have their bags inspected. That is just been disqualified from a security-sen- port authority, labor organizations, not right. sitive position may still be hired if the the private sector, and Federal, State, To improve seaport security tactics, employer establishes alternate secu- and local governments and law enforce- the bill directs the Secretary of Trans- rity arrangements acceptable to the ment. The Committees would be portation to immediately establish do- Secretary. The bill would allow the chaired by the Coast Guard Captain of mestic maritime safety and security Secretary to access FBI, fingerprint, the Port, and meet 4 times per year. teams for the purpose of responding to and other crime data bases to conduct The Committees would be responsible terrorist activity, criminal activity, or the background investigations, and for coordinating planning and other other threats to U.S. ports, especially transmit the results to port authorities port security activities; making rec- in strategically important ports. The or other covered entities. The bill also ommendations for the port security units shall consist of personnel trained would require the Secretary and the evaluations; annually reviewing secu- in anti-terrorism, drug interdiction, Attorney General to establish and col- rity plans; and conducting a field secu- navigation assistance, and facilitating lect reasonable fees to pay expenses in- rity exercise at least once every 3 responses to security threats. I want to curred for the background checks. years. These committees will play a thank Senator EDWARDS for his work The intent of conducting criminal vital role—day to day and month to on this security team initiative. I was background checks of port employees, month—coordinating the actions of law pleased that we were able to include in employers and other maritime trans- enforcement and the private sector in the bill two other amendments au- portation-related employees or em- combating threats of terrorism and thored by Senator EDWARDS: one pro- ployers, is not to upset any of the ex- crime. motes research and development funds isting work relationships or dynamics. The bill requires the Secretary of for non-intrusive scanning technology; Rather the background checks are in- Transportation, in coordination with the second establishes standards for tended to identify legitimate criminal

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00101 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S13874 CONGRESSIONAL RECORD — SENATE December 20, 2001 and national security risks. The Sec- rity of the port and maritime environ- marine terminal operator may load, or retary of Transportation will write reg- ment. We would authorize $13 million cause to be loaded, any cargo that is ulations outlining how background over five years for this new Coast not documented. The bill requires the checks should be conducted, and will be Guard enforcement. The provision in U.S. Customs Service to be notified of responsible for conducting the back- question also requires the Secretary to improperly documented cargo that has ground checks. In the aviation security evaluate the potential of using licensed remained in a marine terminal for bill, we created a Deputy Secretary for U.S. merchant marine personnel to more than 48 hours, and authorizes Transportation Security. The person in supplement the law enforcement ef- that cargo to be searched, seized, and that position should be responsible for forts of the U.S. Coast Guard. forfeited. Undocumented cargo should implementing the national security The bill would authorize the Presi- not sit in port areas for extended peri- check program. dent, without prior notice or a hearing, ods of time. Specifically, shippers who The Secretary also will determine to suspend the right of any vessel or file Shippers Export Declarations which areas are controlled-access person of the United States to enter (SED) by paper shall be required to areas. Clearly, not all areas in ports from a foreign port or depart to a for- provide a copy of the SED to the car- are security risks areas justifying des- eign port in which a condition exists rier; shippers who file their SEDs elec- ignation as such. I would suggest that that threatens the safety or security of tronically shall be required to provide controlled access areas include areas passengers, vessels, or crew traveling the carrier with a complete master bill where ships tie up carrying combusti- to that port, or if a public interest re- of lading or equivalent shipping in- bles, or storage areas for combustibles quires the suspension of trade between structions, including the Automated or explosives, areas where security the United States and that port. The Export System number. While it is im- admit credentialed persons into the bill would authorize the imposition of portant that we obtain certain crucial port or terminal areas, or areas in the civil penalties of up to $50,000 for vio- pieces of information about cargo, Cus- port or terminal where containers are lating the law. toms should recognize that certain ele- opened or exposed. However, the Sec- S. 1214 will require that we know ments of cargo information, such as retary should determine where risk or more in advance about the cargo and weight discrepancies, may fluctuate threat resides, and create a way to crew members coming into the United and shippers should not be held respon- check the backgrounds of individuals States. The more we know about a sible for 100 percent accuracy. The bill who pose a national security or crimi- ship’s cargo, and where it originated, creates civil penalties for violating nal threat by virtue of their presence the better our Customs agents and documentation requirements. in areas requiring a greater degree of other law enforcement officers can tar- An important part of the legislation creates new requirements for the docu- control. Individuals subject to poten- get the most suspicious containers and mentation and electronic transmission tial disqualification from positions passengers. Even with more screening of passenger information in advance of with access to ocean manifests or seg- equipment, we are still going to have an inadequate number of inspections. entry or clearance into a port. It is im- regated controlled access areas must be So targeting the highest risk cargo will perative that the United States have given full and adequate due process, be crucial. advanced information on foreign pas- and collected information must be pro- The bill requires ships to electroni- sengers and crew members to ensure tected from disclosure and only re- cally send their cargo manifests to the that we are not admitting security vealed to the extent that it is pertinent port before gaining clearance to enter. risks. Evidence indicates that mate- to security considerations. While denying vessel clearance to land rials used in terrorist attacks in Kenya The bill would give the Secretary of is within the authority of Customs, I and Tanzania were shipped by vessels Transportation additional authority to would urge that it be used only in the owned and operated by Osama bin address security risks arising from for- most extreme cases, and that enforce- Laden. More information—and more eign ports, such as enhanced enforce- ment alternatives for handling offend- credible information—about foreign en- ment against vessels arriving from ing cargo interests be pursued in order trants will be vital given the volume of such port, travel advisories for pas- not to disrupt all the other legal car- vessels, cargo and crew members enter- sengers, suspension of the right of a goes on-board a vessel. Unloading cargo ing into U.S. waters. In establishing United States vessel to enter such port, will be prohibited if it is not properly such regulations, Customs should work and authority to assist foreign port au- documented. Advanced import infor- with all federal agencies to harmonize thorities to maintain an appropriate mation is regularly transmitted by data reporting requirements to ensure level of security. The Secretary of nearly 90 percent of the ocean shippers. that entrants into the United States Transportation would be authorized to But for the shippers who are not trans- only need to file one form. Policies work through the Secretary of State to mitting that information, we will re- such as INS pre-qualification of crew notify foreign countries of security quire it. By giving Customs advance members between specific pre-approved problems with their ports, and to pub- cargo information, we can better train routes between the United States lish a list of ports with insufficient se- screen imported cargo. and Canada should be allowed to con- curity that would be posted promi- Specifically, the legislation requires tinue. Such policies ensure advance nently at U.S. ports, on passenger tick- carriers, including non-vessel-owning compliance, and stimulate regular ets, and as a travel advisory by the common carriers, to provide by elec- cross-border operation, while not jeop- State Department. The Secretary of tronic transmission, cargo manifest in- ardizing security. Transportation, after consultation formation in advance of port entry or I am also pleased that we were able with the Secretary of the Treasury, clearance. However, the Secretary of to accept an amendment authored by may prohibit or prescribe conditions of Treasury may exclude classes of vessels Senator CLELAND to allow the Commis- port entry into the U.S. for any vessel for which the Secretary concludes sioner of Customs to develop a pilot arriving from a port listed as not se- these manifest requirements are not program to pre-clear cargo coming into cure. In particular, I would like to necessary, and in some cases such as the United States if it is determined commend both Senator KERRY, who trucking, where the electronic trans- that such program would improve the chairs the Coast Guard Subcommittee, mission may not be possible. Customs security and safety of U.S. ports. How- and Senator BREAUX, who chairs the should use its authority to require ever, before implementation of such a Surface Transportation and Merchant electronic transmission, but recognize, program, Customs must determine that Marine Subcommittee, for their efforts because of the nature of certain cat- it would not compromise existing pro- on this front. egories of transport, that it may not be cedures for ensuring the safety of these Senators KERRY and BREAUX au- possible to conduct electronic trans- ports and the United States. The pilot thored another critical section of this missions in every situation. The bill program should be used to determine bill: the Sea Marshal program. The bill also outlines the cargo and route infor- whether we can successfully shift the would authorize the Coast Guard to mation that must be transmitted to evaluation of cargo and cargo security board vessels in order to deter, prevent, Customs. to points outside the United States, or respond to acts of terrorism or oth- The bill prohibits the export of cargo and also ensure that the subsequent de- erwise provide for the safety and secu- unless properly documented, and no livery of cargo is accomplished in a

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00102 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S13875 way that protects against tampering be directed to help beef up security. screening and detection equipment for and maintains the integrity of the These tax revenues will have to be ap- the U.S. Customs Service. cargo seal. propriated, but they can only be spent While we cannot expect to screen The bill directs the Customs Service on the programs authorized by this every marine container entering into to improve reporting of imports, in- seaport security bill. the United States, we need to provide cluding consigned items and goods, of However, the funds provided directly some expectation of inspection, or cre- in-bond goods arriving at U.S. seaports. by the tonnage tax extension are insuf- ate some level of deterrence to dis- Current policies can sometimes allow ficient to cover all of the port security suade smugglers from using the inter- goods to travel into the United States, needs. So the bill includes additional modal system to smuggle cargo. We are and travel for, in some instances, up to authorizations of $965.5 million that so busy investing in a anti-ballistic 37 days, without recording formal Congress can appropriate as our col- missile defense system, we fail to see entry. The bill will require the report- leagues come to realize the important perhaps even a greater threat: a cargo ing of in-bond movements prior to ar- security needs that must be met in the container equipped with a digital glob- rival to ensure advance filing of infor- defense of our nation. Absent the real- al positioning system can be delivered mation identifying the cosignor, con- ization of these authorized funds, Con- anywhere in the United States for less signee, country of origin, and the 6– gress will be imposing an unfunded than $5,000. Why would the enemies of digit harmonized tariff code. The new mandate on states and the private sec- America spend millions on a rocket information must be electronically tor to secure our nation’s maritime launcher and go up against the U.S. Air filed by the importer of record, or its border. Force and U.S. Navy when they could agent. This information will better en- The money will help pay for many of spend $5,000 to ship a container full of able Customs to track cargo and to the items previously mentioned, and explosives or other dangerous mate- intercept any suspicious cargoes in a additionally will be focused on building rials that has only a two percent more timely fashion. This reporting is infrastructure at our seaports, includ- chance of being inspected? not intended to reflect formal entry, ing gates and fencing, security-related The bill also will authorize $75 mil- but will allow Customs to use their tar- lighting systems, remote surveillance lion to establish a grant program to geting system on in-bond cargoes, systems, concealed video systems, and fund the development, testing, and where current policies make it difficult other security equipment. The bill will transfer of technology to enhance secu- to enter relevant targeting data. directly fund and authorize $390 million rity at U.S. seaports. The screening Within 6 months of the bill’s enact- in grants to local port security technology would focus on finding ex- ment, the bill would require a report projects. Specifically, the bill amends plosives or firearms, weapons of mass that evaluates the feasibility of estab- the Merchant Marine Act of 1936 to destruction, chemical and biological lishing a general database to collect in- provide grants for security projects, of weapons. The grants may not exceed 75 formation about the movements of ves- which the federal government will pay percent of the research program. sels, cargo, and maritime passengers in up to 75 percent. Projects under $25,000 This bill is the product of bipartisan order to identify criminal threats, na- would not have a matching require- compromise. I want to thank the Ad- tional and economic security threats, ment, and the Secretary may approve ministration for their efforts to and threats of terrorism. The Sec- federal contributions above 75 percent produce this legislation. The Maritime retary would submit a report of the to a project the Secretary deems to Administration, Coast Guard and Of- findings to Congress. Among several re- have high merit. fice of the Secretary all played a vital quirements, the report must estimate The bill also will fund loan guaran- role in helping draft the bill. I had in- potential costs and benefits of using tees that, according to regular credit tended to work to include legislation public and private databases to collect risk premiums for federal loans, could that would increase various maritime and analyze information, including the cover as much as $3.3 billion in long criminal statutes. Unfortunately, in feasibility of establishing a Joint term loans to port authorities acting the crush of time we were unable to Inter-Agency Task Force on Maritime to improve their security infrastruc- clear these amendments. I think that Intelligence. Additional information, ture. The loans could not cover more both Senator MCCAIN and I agree that and coordination of information will be than 87.5 percent of the actual cost of a these amendments are really impor- crucial in allowing law enforcement to security infrastructure project, and tant to be included in final legislation evaluate threats in advance of U.S. ar- can extend for up to 25 years. The loan on seaport security, and I will work rival, ultimately, policies allowing us guarantee mechanism allows the fed- with him, and Chairman LEAHY and to identify risks abroad will help us eral government to leverage funds by Ranking Member HATCH of the Judici- avoid being forced to rely on policies of extending credit to cover loans for se- ary Committee to include provisions deterrence and prevention on U.S. soil. curity infrastructure, and can help updating our maritime criminal laws. Perhaps most importantly, we need port authorities reduce their capital The bill would require the Secretary to give seaport authorities the re- costs for security infrastructure by of Transportation to prepare and pub- sources to get the job done. It would be amortizing it over time. Ultimately, lish a National Maritime Transpor- great if we could simply declare our this policy will help us build an infra- tation Security Plan for prevention ports to be more secure. However, it structure at our maritime borders in and response to maritime crime and takes money to make sure the inter- the most cost-effective way. The bill terrorism. The plan would include an national borders at our seaports are makes directly available and author- allocation of duties among federal de- fully staffed with Customs, law en- izes $166 million to cover the credit partments and agencies and among forcement, and Immigration personnel. risks of loans extended under this pro- state and local governments and agen- It takes money to make sure they have vision. cies; procedures and techniques for pre- modern security equipment, including U.S. Customs officers must be able to venting and responding to acts of crime the latest scanners to check cargo for screen more than just 2 percent of the or terrorism; and designation of the the most dangerous materials. And it cargo coming into our seaports. Invest- federal official who shall be the Fed- takes money to build the physical in- ing in new screening technologies will eral Maritime Security Coordinator for frastructure of a secure port. help human screeners inspect more each area for which an Area Maritime Our bill will provide $219 million over cargo, and detect the most dangerous Security Plan is required and prepared. four years directly to these important shipments. To increase the amount of Additionally, the bill would also re- national security functions. Cargo cargo screened, the bill authorizes $145 quire the Secretary of Transportation ships currently pay a tax on the gross million for FY02 for additional Cus- to establish Area Maritime Security registered tonnage the ship can carry. toms personnel, and to help Customs Committees comprised of members ap- That tax rate, in current law, is sched- update their computer systems con- pointed by the Secretary. Each Area uled to decline beginning in 2003. Our sistent with the requirements of this Maritime Security Committee would bill will simply extend the existing tax bill. Especially important is that the be required to prepare a maritime secu- rate—which has been imposed since bill directly funds and authorizes $168 rity plan, and work with state and 1986—until 2006. All those revenues will million to purchase non-intrusive local officials to enhance contingency

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00103 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S13876 CONGRESSIONAL RECORD — SENATE December 20, 2001 planning. Each Area Maritime Security many years. And while the federal gov- agency Commission on Crime and Sea- Plan must be submitted to the Sec- ernment failed to address these prob- port Security found our seaports to be retary of Transportation. The plans are lems, the state of Florida invested mil- vulnerable to crime and terrorism. required to outline how to respond to lions of dollars of its own resources to While there is no way to make our Na- an act of maritime crime or terrorism improve port security, which has tion’s seaports completely crime free in or near the area, describe the area helped the communities surrounding and impenetrable to terrorist attacks, covered by the plan, and describe in de- those ports. But they will still need the bill before us today is a very strong tail how the plan is integrated with much more. The states should not first step in closing the gaps in na- other security plans. This requirement carry the entire burden of protecting tional security that now exist at our is similar to the planning requirements the international boarders at our sea- seaports. that we mandated in the Oil Pollution ports. And yet, the problems had be- I want to point out to my colleagues Act for oil spill response, and will help come so severe, that the state of Flor- that the Commerce Committee had ensure that we have local, regional and ida, led in part by BOB GRAHAM, de- acted on S. 1214 prior to the September national level responses to maritime cided it had to act on its own. Senator 11 attacks. As a result of the attacks, crime and terrorism. The bill would GRAHAM’s leadership was vital as we members of the committee and others also authorize the Secretary of Trans- developed this seaport security bill have worked together to further mod- portation to issue regulations estab- long before the terrorist attacks of ify the legislation to provide direction lishing requirements for vessel security September 11. I would also like to and funding to the agencies involved to plans and programs for vessels calling thank the fine work of Senator GRA- focus their efforts not only on decreas- on United States ports, would also au- HAM’s staffer, Tandy Barrett, she also ing crime in our seaports, but to also thorize the Secretary of Transpor- worked very hard on this legislation. increase protection against terrorist tation, in consultation with the Attor- The initiatives in S. 1214 can help attacks. ney General, to require crewmembers protect America and its citizens from In our efforts to increase our nation’s aboard vessels calling on the United potential terrorist threats against sea- seaport security, we have worked to States ports to carry and present upon ports and intermodal connections take into account not only the wide demand such identification as the Sec- throughout the country. These initia- range of threats and crimes sur- retary determines. tives will not make maritime transpor- rounding our seaports, but also the The bill would require the Secretary tation immune from attack. But this unique nature of our ports. As I have of Transportation and the Secretary of bill takes the necessary preventative said before, a ‘‘one-size-fits-all’’ ap- Treasury to establish a joint task force steps to better protect the American proach will not work. Our ports are to work with ocean shippers in the de- public. I urge my colleagues to support complex and diverse in both geography velopment of a system to track data this legislation that is vital to pro- and infrastructure. This is why we have for shipments, containers, and con- tecting our national security. worked to ensure this provides for di- tents. The Secretaries also would work Mr. MCCAIN. Mr. President, once rect local input into the development with the National Institute of Stand- again I thank Chairman HOLLINGS for of security plans for their ports, as well ards and Technology to develop en- his efforts to address identified safety as for response plans for local respond- hanced performance standards for in- and security problems at our Nation’s ers should an attack occur. bond seals and locks for use on or in seaports. The legislation before us S. 1214 would help address a wide containers used for water-borne cargo today is designed to address port secu- range of security shortcomings at our shipments. rity lapses that have been under review Nation’s seaport that were identified in The bill includes a number of report- by the Senate Committee on Com- the Interagency Commission on Crime ing requirements to assess our progress merce, Science, and Transportation for and Security in U.S. Seaports that was on seaport security. I would like to the past two years. After hearings ear- issued September 2000. According to thank Senator NELSON of Florida for lier this year and last year, the Com- the Commission’s report, seaport crime his amendment asking for a Coast merce Committee reported out S. 1214 encompasses a broad range of crimes, Guard and Navy study on the feasi- in August. The bill is intended to pro- including the importation of illicit bility of creating a Center for Coastal vide both the guidance and funding drugs, contraband, and prohibited or and Maritime Security. We all look needed to improve seaport security. I restricted merchandise; stowaways and forward to the results of this impor- commend Chairman HOLLINGS’ leader- alien smuggling; trade fraud and com- tant study. ship on this very important issue to mercial smuggling; environmental We have made dramatic improve- transportation safety and security. crimes; cargo theft; and the unlawful ments to this bill since it was first ap- It is widely reported that transpor- exportation of controlled commodities proved by the Commerce Committee tation systems are the target of 40 per- and munitions, stolen property, and before the terrorist attacks. And I cent of terrorist attacks worldwide. drug proceeds. These crimes are viola- want to thank Senator MCCAIN for Since September 11, we have been tions of federal law, and therefore, the working with me to co-sponsor this working on a bipartisan basis to ad- primary responsibility for enforcement manager’s amendment to the previous dress the nation’s most pressing needs falls to Federal agencies. This bill version of our seaport security bill, S. in the wake of the terrorist attacks. would give those agencies the author- 1214. Senator MCCAIN does not have The Senate Commerce Committee has ity and funding needed to make up for many seaports in Arizona, but he un- been conducting a series of hearings to these shortcomings. derstands that the cargo, materials and gain the information we need to help Additionally, the bill would provide people who come through our seaports us evaluate potential transportation much needed improvements in pre- make their way quickly inland on security risks and determine how best venting terrorist attacks at our Na- trains and highways. So even if you are to respond to those potential risks. tion’s seaports. While seaports rep- living in the desert, the security of our While it is impossible to precisely resent an important component of the seaports affects all of us. I also would quantify, there is no question that an nation’s transportation infrastructure, like to recognize and thank Rob Free- attack on any one of our nation’s 361 seaports’ level of vulnerability to at- man of Senator MCCAIN’s staff, who in- seaports would have far-reaching ef- tack is high, and such an attack, as I vested hours of time and effort to final- fects. With 95 percent of our Nation’s just mentioned, has the potential to ize this product. foreign trade moving through our sea- cause significant damage. The commis- I also must recognize the extraor- ports, the impact of such an attack sion found little control over the ac- dinary efforts of Senator BOB GRAHAM, would ripple through our Nation. Busi- cess of vehicles and personnel to ves- who began working to improve port se- nesses nationwide would face problems sels, cargo receipt and delivery oper- curity long ago and put this issue on getting supplies and exporting finished ations, and passenger processing oper- our radar screen. Senator GRAHAM’s goods. Our entire economy would be ations. The main problem they were home state of Florida has been wres- impacted. able to identify was the lack of a gen- tling with issues of crime, theft and Both the Hart-Rudman Report on erally accepted standard for physical, drug smuggling at its seaports for Homeland Security and the Inter- procedural, and personnel security at

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00104 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S13877 seaports that left seaports wide open threats to our national security. It Sea Marshal program. I further believe for attack. This bill will allow the De- would require the Secretaries of Trans- that the U.S. Merchant Marine Acad- partment of Transportation, along portation and State to prepare an an- emy or any of the State maritime with Federal, state and local law en- nual report for the Congress that would academies would make excellent loca- forcement to take actions to close the list those nations whose vessels the tions for such training centers. security holes at ports nationwide. Coast Guard has found would pose a Lastly, this legislation would allow The bill would authorize $1.18 billion risk to our ports, or that have pre- the President to prohibit any vessel, for seaport safety and security. The sented our government with false, par- U.S. flagged or foreign, from trans- bill would require, for the first time tial, or fraudulent information con- porting passengers or cargo to and ever, the Department of Transpor- cerning cargo manifests, crew identity, from a foreign port that does not have tation to assess the security status of or registration of the vessel. In addi- adequate security measures as deter- U.S. seaports and require each port and tion the report would identify nations mined by the Secretary of Transpor- related facility to submit security that do not exercise adequate control tation. I would like to remind my col- plans for review and approval. The bill over their vessel registration and own- leagues that a similar provision exists would also improve advance reporting ership procedures, particularly with re- in the airline industry and I see no rea- requirements for entry into the United spect to security issues. We need hard son why the President should not have States, provide more funding for information like this if we are to force the power to suspend vessel traffic to screening equipment, facilitate law en- ‘‘flag of convenience’’ nations from and from ports with inadequate secu- forcement coordination at U.S. sea- providing cover to criminals and ter- rity, just like he can now do with ports, and authorize grants and loan rorists. international airports. The stakes are guarantees to seaports and marine ter- This is very important as Osama bin simply too high Mr. President, we can- minal operators to help finance the Laden has used flags of convenience to not allow shipping containers to enter purchase of security equipment and de- hide his ownership in various inter- this country unless adequate security fray the costs of security infrastruc- national shipping interests. In 1998 one exists in foreign ports to prevent weap- ture. of bin Laden’s cargo freighters un- ons of mass destruction from being I want to mention that while the loaded supplies in Kenya for the suicide loaded. In addition we should not allow Congress has already worked to ap- bombers who later destroyed the em- cruise ships carrying U.S. passengers prove aviation security legislation, and bassies in Kenya and Tanzania. To that to visit foreign passenger ports that do we are now moving forward on port se- end, the bill requires the Administra- not have adequate security. curity, both Chairman HOLLINGS and I tion to report on actions they have I again wish to congratulate Senator remain committed to continuing our taken, or would recommend, to close HOLLINGS on this landmark legislation agenda during the next session to ad- these loopholes and improve trans- and to thank him for including several dress transportation security issues in parency and registration procedures, provisions from S. 1589. This legislation all modes of transportation, including either through domestic or inter- will ensure that the United States has railroads and buses. national action—including action at the tools, the information, and the per- I urge my colleagues swift approval the International Maritime Organiza- sonnel to guard against waterborne of this critical legislation. tion. threats to our Nation and our citizens. Mr. KERRY. Mr. President, allow me This legislation would also establish Mr. BREAUX. Mr. President, as to congratulate our distinguished a national Sea Marshal program to pro- many of my colleagues might know, chairman of the Commerce Committee, tect our ports from the potential use of my State of Louisiana depends heavily Senator HOLLINGS, for his outstanding vessels as weapons of terror. Sea Mar- on maritime trade and transportation. work in putting together S. 1214, The shals have recently been used in San After all, Louisiana is darn near close Maritime and Port Security Improve- Francisco and Los Angeles, and is sup- to being underwater, so I always have ment Act. I also wish to congratulate ported strongly by the maritime pilots had an affinity for things that float. Senators GRAHAM and MCCAIN for all of who, like airline pilots, are on the Louisiana is fortunate to have the their hard work in moving this very front lines in bringing vessels into U.S. Mississippi River, along which barges important legislation that is crucial to ports. Sea Marshals would be used in haul grain, wheat and corn from the homeland defense. ports that handle materials that are heartland of America, and coal from I also wish to recognize Carl Bentzel hazardous or flammable in quantities Wyoming. Our fortune extends to the of the Commerce Committee for his that make them potential targets of fisheries resources of the Gulf of Mex- years of hard work in putting this leg- attack. The Coast Guard has taken a ico and our oil and gas resources in the islation together. number of steps including using armed outer continental shelf. We have in- I thank Senator HOLLINGS for includ- Coast Guard personnel to escort a Liq- vested in maritime-related oil and gas ing several provisions from S. 1589, the uid Natural Gas, LNG, tankers into technologies to make that exploration Port Threat and Security Act of 2001, Boston since September 11. Prior to as safe as possible. The Port of New Or- in the final version of his bill. If I may, September 11 these vessels were es- leans, Lake Charles, and South Lou- I would like to discuss the provisions corted by Coast Guard vessels into the isiana—as well as the other Louisiana from S. 1589 that were included in the port but no armed guards were present ports—are major seaports handling final version of S. 1214. on the vessel. I strongly believe that containerized bulk and breakbulk car- Senator BREAUX and I recently held having armed personnel, such as Sea goes, as well as passengers. The ship- oversight hearings before our respec- Marshals, on these high interest ves- building and repair industries employ tive Subcommittees on the Coast sels is very important and will consid- thousands, as does the marine con- Guard and its role in improving mari- erably increase security in our nation’s struction and dredging industry. time security after the terrible attacks ports, including Boston. The ability of My constituents live close to water- of September 11. As Senators HOLLINGS terrorists to board a vessel and cause a ways and the the Gulf of Mexico, and in and BREAUX well know, even before deliberate release of LNG or gasoline many cases earn their living from our September 11 our maritime and port se- for that matter is very real. Sea Mar- marine transportation system and its curity was in sorry shape. However, the shals will make it much more difficult associated industries. So, as the Chair- attacks on New York and Washington for this to happen. The Secretary of man of the Surface Transportation and made it clear we need to go farther Transportation would be responsible Merchant Subcommittee—and as a afield to guard against terrorism and for evaluating the potential use of Fed- resident of a State that relies so much other crimes. eral, State, or local government per- on the smooth operation of its water- We need to improve our base of infor- sonnel as well as documented United ways and ports—maritime security is mation to identify bad actors through- States Merchant Marine personnel to one of my primary concerns. out the maritime realm. A provision of supplement Coast Guard personnel as The security of our commercial sea the bill would help us identify those Sea Marshals. In addition it is my hope and river ports has rarely been the nations whose vessels and vessel reg- that the Secretary will establish train- focus of our national security plans. istration procedures pose potential ing centers around the country for the We have invested millions of dollars to

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00105 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S13878 CONGRESSIONAL RECORD — SENATE December 20, 2001 protect our airports and our land bor- network. It is critical that Customs checks will slow the flow of inter- ders, but very little toward making agents work with the local police, that national commerce. But as we did in sure that the goods and people arriving the State police work with Immigra- the airline security bill, we can strike at our ports do not jeopardize our secu- tion officials, and that the FBI work the balance between increased security rity. We know that Osama bin Laden with local port authorities. That type and the convenience of our open coun- controls a network of ships that hides of cooperation will dramatically im- try and economy. In Louisiana, our sea his ownership. We have to assume that prove port security. Seaports have and river ports are a way of life, and an other terrorists and terrorist networks many different agencies and jurisdic- integral part of our economy. We have do, too. Therefore it is imperative that tions. So this bill attempts to har- some of the largest seaports in Amer- we take a more active Federal role in monize their efforts, and will require ica, and the Mississippi River runs protecting the international bound- the Coast Guard, in their role as Cap- through the heart of Louisiana. The aries of our seaports. tain of the Port, to lead the coordina- river is a super-highway of commerce There is no unified Federal plan for tion of law enforcement. that helps drive our State’s economy. overseeing security at the inter- The businesses that operate in sea- Security and the protection of our national borders of our sea ports. Right ports also play a crucial security role. people from harm always will be our now the responsibility of building se- They must be brought into a coopera- primary goal. However, we must do it cure sea and river ports rests with tive environment in which a port’s law in a way that does not dramatically states like Louisiana, its port authori- enforcement information is commu- slow the movement of goods that run ties, and the private sector. That was a nicated and shared confidentially with our just-in-time-delivery economy. The poor model for national security when privately-hired security officers. In re- answer to that problem is technology. New scanners are now on the market we were fighting drugs and inter- turn, private security officers must that can x-ray and scan an entire 48- national smuggling—and it is totally have a direct line to share information with Federal, State, and local authori- foot cargo container. Customs cur- inadequate after September 11 as we rently depends primarily on gamma- ties. face the threat of terrorism. ray systems that are adequate for see- That is why we must pass S. 1214, the To verify that the cargo loads match the manifests, we will need more Cus- ing through small vehicles or loosely- Port and Maritime Security Act. packed crates. But more powerful X- For the first time we will require toms officials to check that cargo. In- ray based machines—already used in Federal approval of port security pro- credibly, only 2 percent of the cargo Israel, the Netherlands, and Hong grams. These plans will have to meet containers arriving at our ports are Kong—can pierce several inches of rigorous standards for security infra- ever checked by Customs officials. steel and peer through more densely structure, screening equipment, evacu- That is a huge hole in our national se- packed boxes. These machines can see ation plans, access controls, and back- curity system that must be fixed. We everything from false compartments seek to close this security hole by di- ground checks for workers in security- down to the buttons on a remote con- rectly granting and authorizing more sensitive areas. trol. And they can be programmed to We also will require more informa- than $168 million for the purchase of spot ‘‘density signatures’’ that indicate tion about the cargo and passengers ar- non-intrusive screening and detection explosive and nuclear materials. The riving at our ports. Right now we do equipment to be used by U.S. Customs more the Federal Government, ports not know enough about the ships and officers. These Customs officers are on and the private sector invest in using the cargo that call 24 hours a day. We the front lines of protecting our coun- this new scanning technology, the need to change that immediately. We try from the importation of illegal and fewer cargo containers and boxes will will require that ships electronically dangerous goods. We must give them have to be opened and searched by transmit their cargo manifests—and if the latest technology and the most hand. That will increase the efficiency the manifest does not match the cargo, modern cargo screening equipment of international commerce and trade— it will not be unloaded. We also will available. while at the same time making our na- check crew and passenger manifest in- We also must help the private sector tion more secure. formation to identify people who could and the port authorities meet these na- Investing in scanners is even more pose a security threat. My Sub- tional security challenges. This prob- critical when you consider that the ex- committee held a hearing on rail and lem would be must more simple to panding global economy raises the vol- maritime security in the aftermath of solve it the United States had national ume of seaborne shipping by 7 to 10 per- the events of September 11. At that seaports under the control of the Fed- cent each year. In other words, the hearing we heard testimony that the eral Government—or if the Federal amount of goods arriving and departing Republic of Panama had issued more Government directly funded seaport in- through our seaports is expected to than one thousand false documents frastructure. However, that is not the double by 2020. While that increased that allow unauthorized personnel to case. Maritime infrastructure is owned trade will benefit our economy, it also operate on-board their vessels. by States and by the private sector. poses a national security threat if we More information—and more reliable But the Federal Government has a role are unable to keep pace with the grow- information—is the key to fighting to play here for homeland security. We ing volume of goods and people passing crime and terrorism. The more we cannot force States and the private through our ports. know about these ships, including who sector to comply with security man- That is why the private sector must owns them and where they have been, dates, yet not provide funding. The leg- get behind our efforts—and behind this the better we can target our law en- islation will directly fund and author- bill. Before September 11, port security forcement resources at our ports to ize $390 million in grants to local port was something of an afterthought. We check on the most suspicious loads. We security projects. The bill also will are now facing new threats. The more need to know who is on these ships, fund loan guarantees that could cover we invest in the infrastructure of mak- and, eventually, be able to quickly as much as $3.3 billion in long term ing our ports secure, the less likely check the names with a computer data- loans to port authorities acting to im- that your key products and supplies base of known terrorists or other asso- prove their security infrastructure. Up- will be delayed at the ports due to in- ciates of international criminal organi- grading that infrastructure means in- creased security. As public officials, zations. stalling modern gates and fencing, se- our primary duty is to protect public This bill will require Federal, State curity-related lighting systems, remote safety and national security. If the pri- and local law enforcement officials to surveillance systems, concealed video vate sector engages and cooperates better coordinate the sharing of that systems, and other security equipment with our efforts, there will be less im- information. If a local police officer ar- that contributes to the overall level of pact from that tightened security upon rests someone for breaking into a se- security at our ports and waterfront fa- the free flow of goods and supplies cure area of the port, timely sharing of cilities. through our major seaports. That is a that information with State and Fed- Some of our shipping companies may public-private partnership that can eral officials might help identify the worry that these new procedures re- work—and protect America at the person as part of a larger international quiring more security and customs same time.

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00106 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S13879 We have made the investments at our noncontiguous countries does so In response to my request, President airports and at our land borders to through the Nation’s 361 coastal and Clinton established the Interagency counter threats of terrorism and other inland ports. Commission on Crime and Security in international criminal organizations. Alarmingly, less than 2 percent of U.S. Seaports on April 27, 1999. It is now time to invest in the security this enormous number of cargo con- In October 2000, the Commission of the international borders at our sea- tainers are actually inspected. issued its final report, which outlines ports, in order to protect our nation Over the next 20 years, the total vol- many of the common security problems and our local seaport communities. ume of imported and exported goods at discovered in U.S. seaports. Among Mr. NELSON of Florida. Mr. Presi- seaports is expected to increase three- other conclusions, the Commission dent, I rise to thank Chairman HOL- fold. found that: one, intelligence and infor- LINGS and ranking member MCCAIN for Waterborne cargo alone contributes mation sharing among law enforce- agreeing to include in S. 1214, the Port more than $750 billion to the U.S. gross ment agencies needs to be improved at and Maritime Security Act, a Coast domestic product and creates employ- many ports; two, that many ports do Guard and Navy study to evaluate the ment for 13 million people. not have any idea about the threats merits of establishing a Center for Despite the massive volume of cargo they face, because vulnerability assess- Coastal and Maritime Security. that moves through our Nation’s ports, ments are not performed locally; The events of September 11 cruelly there are no Federal security standards Three, that a lack of minimum secu- illustrated the challenges we face in or guidelines protecting our citizens rity standards at ports and at termi- providing comprehensive and reliable from potentially lethal cargo. nals, warehouses, and trucking firms security for our homeland. There is no The Federal Government does not leaves many ports and port users vul- challenge more daunting than the inte- provide the resources for technology nerable to theft, pilferage, and unau- gration of our Federal, State and Local that an adequately screen cargo mov- thorized access by criminals; and four, law enforcement agencies and their co- ing through our ports, leaving them advanced equipment, such as small ordinated efforts with our Armed vulnerable to criminal activity—from boats, cameras, vessel tracking de- Forces to protect our vast and complex smuggling to cargo theft to terrorism. vices, and large scale X-rays, are lack- maritime and industrial areas. Security at our maritime borders is ing at many high-risk ports. My amendment directs the adminis- given substantially less Federal consid- Our legislation addresses the prob- tration to seriously consider estab- eration than airports or land borders. lems of our seaports by instructing the lishing an institution that can provide At U.S. seaports, the Federal Govern- Attorney General to coordinate the re- integrated and coordinated training for ment invests nothing in infrastructure, porting of seaport related crimes with the organization, planning and execu- other than the human presence of the State law enforcement officials, so as tion of security systems necessary to U.S. Coast Guard, U.S. Customs Serv- to harmonize the reporting of data on protect our vulnerable ports and coasts ice and the Immigration and Natu- cargo theft. from potential terrorist attacks. ralization Service, and whatever equip- The bill would also increase the I am grateful for the inclusion of lan- ment those agencies have on-hand to criminal penalties for cargo theft. guage directing this study because the accomplish their mandates. To address the lack of minimum se- U.S. Navy’s Coastal Systems Station in Physical infrastructure is provided curity standards at America’s seaports, Panama City, Florida is uniquely by State or local controlled port au- the bill would require security pro- staffed with coastal security experts to thorities, or by private sector marine grams to be developed by each port or help the Coast Guard conduct this as- terminal operators. marine terminal. sessment. In analyzing the costs and There are no controls, or require- Each security program will be sub- benefits of a Coastal and Maritime Se- ments in place, except for the minimal mitted to the Security of Transpor- curity Center, I urge the Coast Guard standards promulgated by the Coast tation for review and approval. to work closely with the Coastal Sys- Guard for the protection of cruise ship These security programs would re- tems Station to ensure the best pos- passenger terminals. quire maintenance of both physical and sible recommendation for the Adminis- Essentially, where seaports are con- procedure security for passengers, car- tration and Congress. Mr. President, I am confident that cerned, we have abrogated the Federal goes, crew members, and workers; pro- the study directed by this language responsibility of border control to the visions for establishing secure areas will conclude that an investment in State and private sector. within a waterfront; creation of a In the face of these new challenges, it interagency integrated education and credentialing process to limit access to appears that the U.S. port management training to improve the protection of restricted areas so only authorized in- system has fallen behind the rest of our ports and harbors is in the very dividuals gain admittance; restriction world. best interests of our national security. of vehicular access; development of an Mr. GRAHAM. Mr. President, this We lack a comprehensive, nation- evacuation process from port areas in bill would take a significant step to- wide strategy to address the security the event of a terrorist attack or other ward securing our Nation against fu- issues that face our seaport system. such emergency; and establish security ture terrorist actions. In early 1998—in response to the al- awareness for all employees. Just as we have unanimously decided most daily reports of crime and nar- Our bill requires the Coast Guard, in to bolster security at our airports, we cotics trafficking at Florida seaports, consultation with the appropriate pub- must also improve the overall security and following the day I spent working lic and private sector officials and offi- and cargo processing operations at U.S. with the Customs Service at Tampa’s cials and organizations, develop a sys- seaports. Port Manatee on October 14, 1997—I tem of providing port security-threat If nothing else, September 11 has began an investigation of the security assessments for U.S. seaports. The bill demonstrated the need to do more to situation at seaports throughout the would authorize $60 million over 4 secure our Nation from terror—wheth- nation. At that time, and perhaps even years to carry out this provision. er it comes from land, sky or sea. Be- more so today, I was very concerned The Seaport Commission report fore discussing the specifics of this leg- that our seaports, unlike our airports, found that current inspection levels of islation, it is important to describe the lacked the advanced security proce- containerized cargo are insufficient to circumstances that have caused the se- dures and equipment that are nec- counter potential security risks. curity crisis at our seaports. essary to prevent acts of terrorism, This bill will authorized $168 million Seaports represent an important cargo theft and drug trafficking. over five yeas, for the Customs Service component of the Nation’s transpor- Based on this workday, and subse- to purchase non-intrusive screening tation infrastructure. quent investigation, I asked President and detection equipment for use at Each year, thousands of ships, and Clinton to establish a Federal commis- U.S. seaports. millions of passengers, enter and leave sion to evaluate both the nature and It would also authorize $145 million the United States through seaports. extent of crime and the overall state of for 1,200 new customs inspector posi- It is estimated that 95 percent of the security in seaports and to develop rec- tions, and 300 new customs agent posi- cargo that enters the country from ommendations for improvement. tions.

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00107 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S13880 CONGRESSIONAL RECORD — SENATE December 20, 2001 The bill would also create a research I believe that technology can play an This bill will strengthen law enforce- and development grant program to pro- important role in ensuring the integ- ment at our ports by establishing a fed- vide grants up to 75 percent of the cost rity, safety, and security of goods com- eral port security task force and pro- of construction, acquisition or deploy- ing into this country via ship. To that viding more funding for local efforts to ment of technology to help develop end, my amendment that is included in boost port security. It is crucial that non-intrusive inspection technologies. S. 1214 establishes a pilot program run we increase cargo surveillance and in- The bill would authorize $15 million and defined by the Customs Service to spections. And it is crucial that we pro- annually for fiscal year 2002 to fiscal examine different technologies and vide our Customs agents and other port year 2006 for this purpose. how they can be employed to verify security forces with the equipment Implementing the provisions of the that a container’s contents are what needed to detect chemical, biological, Port and Maritime Security Act of 2001 they say they are and that they have and nuclear weapons of mass destruc- will produce concrete improvements in not been tampered with during trans- tion, WMD. the efficiency, safety, and security of port. Shippers and transporters using Osama bin Laden has stated that he our Nation’s seaports, and will result effective such technologies could then considers it his ‘‘religious duty’’ to ob- in a demonstrable benefit for those who enter U.S. ports on an expedited basis. tain such weapons. are currently pay tonnage duties. With 95 percent of foreign trade enter- Earlier this month, the director gen- This legislation is long overdue—that ing or leaving the U.S. via ship, allow- eral of the International Atomic En- became all too apparent the morning of ing a quicker entrance by certain ergy Agency warned, ‘‘The willingness September 11. Not only is it required to ‘‘trusted shippers’’ will allow a quicker of terrorists to commit suicide to facilitate future technological ad- conveyance to American consumers. achieve their evil aims makes the nu- vances and the anticipated increases in Already, I have seen outstanding clear terrorism threat far more likely international trade, but it would en- demonstrations from people all over than it was before September 11th.’’ sure that we have the sort of security this country of their detection tech- According to the Agency, there have controls necessary to protect our bor- nologies and how they can be used to been 175 cases of trafficking in nuclear ders from threats of illegal aliens, drug improve security. My amendment is a material since 1993 and 201 cases of smuggling and terrorism. challenge to these innovators to de- trafficking in medical and industrial As we work to lift our Nation’s fear velop such technologies for use in the radioactive material. Sadly, it is no of travel in our skies, we must also shipping world. longer beyond the pale to imagine that move to guarantee their safety on our Additionally, I have heard testimony bin Laden and his associates might try seas. from maritime experts that America to smuggle a nuclear device or so- This bill does not affect just those needs to find ways to ‘‘push its borders called ‘‘dirty bomb’’ onto a cargo ship states with ports. back.’’ By ‘‘pushing back’’ our borders entering one of our busy seaports and Each day 16,000 containers arrive in the intention is to ensure the integrity then detonate it. the United States. A single container and inspection of goods entering the I was prepared to offer an amend- can hold 30 tons. country at points farther out from our ment to make it quite clear that ref- These containers are either trans- physical borders. If this process can be erences in the bill to chemical, biologi- ported by truck or by rail throughout taken care of in a foreign port, con- cal, or other weapons of mass destruc- the United States. fidence in the integrity of the goods in- tion include nuclear devices. To illustrate my point, I have a chart creases and time is saved by domestic Mr. HOLLINGS. If the senior Senator here which depicts a normal route of a inspectors who can use their resources from California will yield, I assure her cargo container entering the Port of elsewhere. My amendment would allow that is our intent. Where was authorize Los Angeles and arriving in New York. the securing of goods in the port of ori- activities or funding to step up These containers travel across Amer- gin so that when these goods arrive in survelliance, inspection, and detection ica, often more than a dozen States be- the U.S. we can be assured of their of WMDs at our seaports, we would fore reaching their destination. safety. want to target any kind of nuclear de- Our seaports are our first line of de- I thank Senator HOLLINGS for his vices as well as chemical and biological fense in preventing a potential tragedy. help with my amendment, and I look weapons. Seaports play one of the most crit- forward to working with Customs to So, for instance, any authorizations ical roles in expanding our inter- implement this program, which I be- in the bill for the purchase of detection national trade and protecting our bor- lieve will be helpful to get goods to equipment could be used to buy radi- ders from international threats. market in safe but timely manner. ation pagers for the Customs agents The ‘‘Port and Maritime Security NUCLEAR DEVICES DETECTION who inspect cargo, or for radiation de- Act’’ recognizes the importance of our Mrs. FEINSTEIN. Mr. President, I tectors on cargo X-ray machines, or to seaports and devotes the necessary re- am encouraged that the Senate is retrofit existing X-ray machines with sources to move ports into the 21st cen- poised to pass legislation bolstering se- sensitive sodium iodide detectors. tury. curity at our Nation’s 361 seaports. I Mrs. FEINSTEIN. I thank the chair- I urge my colleagues to look towards thank the members of the Senate Com- man for his clarification. It is abso- the future by supporting this critical merce Committee for their hard work lutely vital that we upgrade our detec- legislation—and by taking action to on this bill. tion technology. Oakland’s Howard Ma- protect one of our most valuable tools While often out of the public eye, rine Terminal, for instance, is less than for promoting economic growth. ports and harbors across the United once-half mile from Jack London Mr. CLELAND. Mr. President, I rise States are America’s economic gate- Square, a major tourist attraction. today to express my strong support for ways. Every year, U.S. ports handle Ships that travel into and out of the S. 1214, the Port Security and Improve- over 800 million tons of cargo, valued Port of Oakland terminal pass within ment bill. This legislation is overdue at approximately $600 billion. If you ex- 400 yards of the Square. and absolutely needed in broadening clude border commerce with Mexico Immediately following the Sep- our response to the threat of terrorism. and Canada, our ports handle 95 per- tember 11th attacks, a 920-foot tanker The Report of the Interagency Com- cent of U.S. trade. Two of the busiest carrying 33 million gallons of liquefied mission on Crime and Security in U.S. ports of the nation are in California, at natural gas (LNG) was prevented from Seaports, issued in the fall of 2000, indi- Long Beach and Oakland. entering Boston Harbor. The tanker cates that ‘‘the state of security in Yet, just 1 or 2 percent of the 11 mil- was kept 6 to 8 miles offshore while au- U.S. seaports generally ranges from lion shipping containers reaching our thorities figured out a way to safe- poor to fair, and in a few cases, good.’’ ports are inspected each year. The Fed- guard the Harbor. It was not until No- Now that this country is acutely aware eral Government has taken steps to vember 4—with Coast Guard escorts— of the repercussions of overlooking beef up security along our northern that the tanker was allowed into the transportation security weaknesses, and southern borders. And we are ad- harbor. Congress would be severely remiss if we dressing aviation security. But just Mr. HOLLINGS. The Senator from did not act promptly to improve on the about everything that arrives by ship California has raised good points. I ap- ‘‘poor to fair’’ rating at our ports. is waved through. preciate her interest in the matter and

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00108 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S13881 her willingness to reach an accommo- access in the bill. Background checks swer to the Senator’s question is yes, dation with the Commerce Committee. will be limited to those employees who the intention is to cover all areas af- We certainly want to interdict any nu- have access to sensitive cargo informa- fected by maritime transportation and clear devices as assuredly as we want tion or unrestricted access to seg- commerce. The legislation covers not to interdict other WMDs. regated ‘‘controlled access areas,’’ that only seaports but also ‘‘public or com- PORT AND MARITIME SECURITY ACT COLLOQUY is defined areas within ports, termi- mercial structures located within or Mr. HOLLINGS. Mr. President, we nals, or affiliated maritime infrastruc- adjacent to the marine environment’’ worked hard with the Administration ture which present a critical security including navigation locks. to incorporate many of their suggested concern. Such controlled access areas Mr. WYDEN. I thank the Senator for changes in this bill to sharpen the pol- could be: locations where containers his clarification. I also ask him wheth- icy and create a better legislative prod- will be opened, points where vessels er under his legislation, the Coast uct. I had intended to work with Chair- containing combustible or hazardous Guard would have authority to oversee man LEAHY of the Judiciary Com- materials are berthed and port security dangerous cargoes transported along mittee to modernize and update some stations. In addition, under this bill the Columbia/Snake River system as of our maritime criminal laws to re- the use of background information, well as cargoes in port? flect the realities following the attacks once it is obtained, will be restricted to Mr. HOLLINGS. Under the legisla- the minimum necessary to disqualify of September 11th, and to strengthen tion, the Secretary of Transportation an ineligible employee. In other words, our laws to protect against maritime would issue regulations for security only the minimum amount of law en- terrorism. Unfortunately, the Adminis- programs for cargo as well for pro- forcement information necessary to tration did not consult or share with tecting passengers, crew members and make eligibility decisions will be the Judiciary Committee the changes other workers. The authority for secu- shared with port authorities or mari- in criminal laws and other matters rity of cargo is broad enough to cover time terminal operators. within the Judiciary Committee’s ju- not only cargoes in port but also dan- risdiction that were provided to me. I Moreover, this legislation ensures ap- propriate due process protections for gerous cargoes anywhere in the mari- would like to ask the Chairman of the time navigation system including Judiciary Committee, if he would be port employees who may be subject to a background check. In the legislation those in transit through navigation willing to work to work with me and locks. Senator McCain next year to consider the Secretary is required to establish whether new criminal provisions are an appeals process that includes notice Mr. WYDEN. I thank the chairman necessary to enhance seaport security? and an opportunity for a hearing for in- again for answer and commend him for Mr. LEAHY. Mr. President, I am also dividuals found to be ineligible for em- his leadership on this important issue. very concerned that we develop poli- ployment as prescribed in Section 106. I FREIGHT RAIL SECURITY cies to more adequately protect our also agree that this process should Mr. ROCKEFELLER. Mr. President, maritime vulnerabilities and protect evaluate any extenuating and miti- will my friend, the distinguished chair- the public from the threats emerging gating circumstances. I will work to man of the Senate Commerce Com- as a result of maritime trade. I would ensure that we accomplish these objec- mittee, the Senator from South Caro- be happy to work with Chairman HOL- tives as the port security legislation lina, yield for the purpose of engaging LINGS and Ranking Member MCCAIN moves forward. in a colloquy? next year to evaluate whether any gaps SECURITY OF INLAND WATERWAYS Mr. HOLLINGS. I will be happy to in our criminal laws to protect our Mr. WYDEN. Mr. President, I rise to yield for the purpose. engage the distinguished chairman of maritime safety and seaport security Mr. ROCKEFELLER. I thank the dis- the Commerce Committee in a col- exist and the appropriate steps we tinguished chairman of the Commerce loquy on very important legislation he should take to close those gaps and at Committee. the same time ensure that the rights of has sponsored—the Port and Maritime port employees are protected. Security Act of 2001. This legislation, Mr. President, I would like to ask the Mr. President, I have also expressed which I am pleased to have cospon- Senator from South Carolina if he to Chairman HOLLINGS my concerns sored, would establish new Federal would agree that in the aftermath of that we properly limit access to and safeguards for the security of our ports the terrorist attacks of September use of sensitive law enforcement infor- and maritime commerce. I would ap- 11th, this nation came to a number of mation relating to background checks preciate the chairman clarifying stark realizations about our which are provided for in this bill. whether the intent of this legislation is vulnerabilities and the overall state of Chairman HOLLINGS has assured me to cover not only the security of ports our security? that the bill sets strict and appropriate but also inland waterways such as the We have become aware that glaring limits as to both when such access will Columbia-Snake River system. This is security gaps exist throughout our na- be required and how the information an important issue for the Pacific tion’s transportation system. The Sen- will be used once obtained. Addition- Northwest region because dams on the ator from South Carolina has been a ally, the Chairman understands my Columbia and Snake Rivers are not leader in focusing the Senate’s atten- continuing concern over the need for only critical for maritime transpor- tion on the need to improve the safety appropriate due process protections for tation in our region but also a major of our ports, and he has been steadfast employees of ports at all levels who source of our region’s energy. Barges in his support for additional protec- may be subject to background checks. pass through the locks on these dams tions for our nation’s rail passengers. I These would include a hearing that every day carrying gasoline and other hope that he will agree with me that as would consider mitigating and extenu- explosive cargoes that could disrupt important as improving the security in ating circumstances related to the in- our waterways or energy production those areas is, our job is not complete dividual in question. Am I correct that and even put residents downstream at until we pay similar attention to the it is the intent of the Chairman to en- risk of flooding if these cargoes ex- security of our freight rail system. sure that the Department of Transpor- ploded while in transit through one of One of the most serious tation and the nation’s ports carry out the navigation locks. So I would ask vulnerabilities in the nation’s trans- background checks with proper safe- my Chairman whether the authority portation system is possibility that guards in place that ensure due process provided to the Coast Guard and S. 1214 terrorists may target hazardous mate- protections for employees. And will the includes evaluating not just security rials being transported across this na- Chairman commit to work with me to for ports but also inland waterways tion’s vast and largely unsecured that end? I would like to ask Chairman like the Columbia/Snake River system? freight rail network. I am sure the Sen- HOLLINGS if he could explain these pro- Mr. HOLLINGS. I appreciate the Sen- ator is aware that several studies con- visions? ator helping to clarify this point. I clude that the chemical industry is Mr. HOLLINGS. Mr. President, we know it is especially important for the particularly vulnerable to terrorist at- have included the important protec- Senator’s home State of Oregon and tacks, and point to the shipment of tions and limitations for such use in the Pacific Northwest region. The an- hazardous materials by rail as one of

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00109 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S13882 CONGRESSIONAL RECORD — SENATE December 20, 2001 the most serious threats to the indus- should help these companies on a order to bring passengers back to bus try. In fact, I believe that a study re- short-term basis to defray their post- travel. Otherwise, these businesses quested by the Senator’s Appropria- September 11th security-related ex- may have to increase the cost to the tions Subcommittee and due to be pub- penses. I will promise the Senator from customer to pay for the necessary secu- lished this month, will come to this West Virginia that the Commerce Com- rity upgrades. very conclusion. mittee will take up the issue of rail se- Mr. HOLLINGS. As chairman of the I do not mean to suggest that trans- curity as early as possible during the Commerce Committee, I am very aware portation of chemicals or other haz- next session of the Congress. of the need of the bus community. It is ardous materials should be curtailed. Mr. ROCKEFELLER. I thank the an important segment of our transpor- While the transportation of hazardous Senator from South Carolina, and I tation infrastructure. I look forward to materials poses risks to human health, thank the Presiding Officer. working with my colleague from Geor- the expeditious movement of certain BUS SECURITY ACT gia on his legislation at the earliest op- products, like chlorine for municipal Mr. CLELAND. Mr. President, I ap- portunity in 2002. water systems, is absolutely essential preciate the chairman’s leadership in Mr. CLELAND. I thank the Senator for the protection of human health. promoting safety in all modes of pas- for his support and attention to this The railroad and chemical industries senger and cargo transportation. In the matter, and I look forward to working have acknowledged the risks, and have Commerce Committee executive ses- with you in the future on this issue of taken strides toward improving the se- sion on October 17, the committee ad- national importance. curity of their facilities, hazardous ma- dressed the important issue of pas- Mr. SCHUMER. Mr. President, I seek terials shipments, and rolling stock senger rail safety. The committee ap- unanimous consent to say a few words since the September 11th attacks. proved funding for the upgrading of about the Port and Maritime Security These security improvements, and ad- Amtrak tunnels and bridges primarily Act of 2001 and the herculean efforts of ditional security enhancements that along the much-used Northwest cor- the Senate Commerce Committee are planned, will be inordinately cost- ridor. While I support and applaud the Chairman, Senator HOLLINGS, to get it ly, perhaps reaching as high as $150 goal of increasing passenger rail safety passed. million in this calendar year, and an- and security—in fact I strongly support In the aftermath of September 11, other $150 million in 2002. I hope the this legislation—at the same com- most of the legislation considered in Senator will agree that the extraor- mittee session I raised the issue of this chamber has been reactive in na- intercity bus security. Attention be- dinary and unforeseen nature of the ture. This bill, like Senator BYRD’s costs being incurred by hazardous ma- came acute on this issue after the Oc- homeland security package, is decid- terials shippers, tank car owners, and tober 3 incident on a Greyhound bus edly different. railroads, combined with the benefit to that resulted in the death of seven peo- This bill is designed to prevent a ter- human health and public safety that ple. Since that event, there have been rorist attack on one of our nation’s these security enhancements represent, other attempts to cause mayhem on most vulnerable pieces of infrastruc- justifies a program of short-term fed- buses, but thankfully, none have re- ture—our ports. This bill anticipates eral grants to reimburse or defray sulted in deaths. With over 774 million the possibility of an attack, and sets some of the post-September 11th secu- intercity bus passengers annually with out to make that impossible. This is rity-related expenses these companies companies serving over 4,000 commu- exactly the kind of legislation that we are incurring. nities, we cannot wait to act on secur- were sent to Congress to pass. If the Senator from South Carolina ing this important mode of transpor- Yet it would not have passed without does agree with the need to improve tation. the dogged efforts of Senator HOLLINGS, our nation’s rail security, and under- Mr. HOLLINGS. I appreciate the fact who forced the issue as most members stands the unprecedented outlays that that the Senator from Georgia brought of Congress were leaving town. railroads and shippers have made or this matter to the committee’s atten- Finally, I would just like to comment will make in the near future, would he tion. Bus security is in fact an impor- on Senator HOLLING’s use of David commit to this Senator to hold what- tant issue which unfortunately cannot Stockman’s The Triumph of Politics, ever hearings deemed necessary, and to be appropriately addressed before the in his remarks today. I too remember schedule a prompt mark-up in the end of this year. I applaud the initia- those days in the early 1980’s, when the Commerce Committee early in 2002 for tive of the Senator from Georgia and Laffer Curve and trickle-down econom- legislation of mine to require the Sec- leadership on this issue and, in par- ics were coming into vogue. I was a retary of Transportation to conduct a ticular, his introduction of S. 1739, young congressman then, and I didn’t comprehensive terrorism risk assess- which establishes a competitive grant believe it would work. ment, and to set up a Rail Security program to allocate funding to bus I still don’t. And I share the chair- Fund to make the types of grants that companies to increase security and man’s disbelief that even after Sep- we have discussed here today? safety and creates a research and de- Mr. HOLLINGS. I thank the Senator velopment program for new tech- tember 11—when our Nation’s for his comments on the state of our nologies to increase bus security and vulnerabilities have been so explicitly nation’s transportation security, and I safety. It is my intention to consider exposed and the need for additional se- agree with his assertion that a com- this legislation on the markup cal- curity resources has been made so evi- plete treatment of our security needs endar of the Commerce Committee’s dent— we would again travel down that would include legislation to improve first executive session of 2002. path. the security of our rail network. I am Mr. CLELAND. I applaud the chair- Mr. President, I thank the Chairman aware that the need for the safe and ex- man’s decision to advance the issue of for his efforts on this vital piece of leg- peditious rail transportation of chemi- bus safety. With bus terminals often islation. cals and other hazardous materials is sharing facilities with both airports PORT SECURITY, S. 1214 essential for our nation’s economy, and and rail stations, omitting this critical Mr. MURKOWSKI. Mr. President, I that the movement of some chemicals, component of the equation leaves a rise today to thank Chairman HOL- including chlorine, is necessary for the hole in the system. This mode of trans- LINGS and Senator MCCAIN for accept- preservation of public health. portation is the largest domestic pas- ing my amendment to this important I am aware also of the security im- senger service provider, and it has bill will promote security at our Na- provements that have been undertaken grown without the aid of federal sup- tion’s seaports. by railroads and hazardous materials port. Now that they need assistance to America’s ports provide invaluable shippers. I agree that the security-re- supplement their own efforts and pro- links between American productivity lated expenses are extraordinary, and tect our citizenry, it is time for Con- and markets both here at home and that in the interest of protecting the gress to act. This industry is made up abroad. general public from the effects of a ter- of many small businesses, which may Ports are a critical cog in the wheels rorist attack on hazardous materials not be able to survive if assistance is of our economy. But quite frankly, our shipped by rail, the federal government not given to help boost security in ports are vulnerable.

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00110 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S13883 History has taught us lessons in vul- pect of port operations are full partici- tect our coast and ports and to respond nerability before, whether it be the pants in the effort to ensure port secu- in the event of an attack. USS Maine in Havana Harbor, the at- rity. I am so pleased that we are passing tack on Pearl, or the USS Cole in It further ensures that when we talk the Port Security Bill. This is an ex- Yemen, ships and shipping are always a port security, that we’re talking about tremely important piece of legislation risky proposition, especially in the our Nation’s energy security. and an important component of our na- confines of port. I greatly appreciate the willingness tional defense. These lessons have new meaning in of the Chairman, Mr. HOLLINGS, and I would like to take this moment to today’s reality of war. the Ranking Republican, Mr. MCCAIN, thank Chairman HOLLINGS for working A single attack, on a single ship, in a to accept this amendment. with me on several amendments I had single U.S. port could render the entire This amendment will make a strong to this important bill. facility immobile. and much needed bill even stronger. When the Commerce Committee held Mr. EDWARDS. Mr. President, I rise What does that mean? No exports of hearings on port security back in July, today to support the Port and Mari- U.S. autos. No freighters carrying ore I raised several issues with the wit- time Security Act of 2001 and to speak on the Great Lakes. No grain barges up nesses about the security of our ports about the need to protect our seaports or down the Mississippi Rover. Simply and the ability to protect against a from terrorist attacks. put, No trade. possible terrorist threat. I have been Our seaports are critically important And perhaps most troubling, no en- working since then to develop legisla- to our national, and global, economy. ergy. tion to address some of the concerns I Our seaports enable us to export our In my State the Port of Valdez, at had that were confirmed at the hear- goods to the rest of the world and allow the end of the Alaska Pipeline, is re- ing. us to import the goods we do not sponsible for providing much of the When the Commerce Committee West Coast and Hawaii with its oil. produce domestically. Ninety-five per- cent of all U.S. overseas trade is con- marked up its port security bill in And in Kenai, the facility sees billions early August, I received assurances of cubic feet of Liquified Natural Gas ducted through our 361 public seaports. OLLINGS that we Roughly 45,000 cargo containers enter from Chairman H transferred each year. would continue to work to make sure the U.S. every day. What would happen if these ports my concerns were addressed when the were closed by some horrific act? How Our seaports are also an important component of our national security. In bill came to the Senate floor. At that could we move our Nation’s domesti- time, we of course had no idea that our cally produced energy? the interest of promoting trade, we ac- cept increasing traffic in and around country was only a month away from These facilities and others around such a horrendous terrorist attack. the U.S. demand our best efforts to our seaports as ships, crew and cargo But I am pleased that we are now protect them. move goods between our nation and taking up this bill. It will make our But a large, and unfortunately grow- others. Yet even as we do this, we must seaports and our nation safer. And I ing, role for our ports is the importa- recognize that the very volume of want to again thank the Chairman and tion of foreign-produced energy, crude cargo moving through our seaports Ranking Member for working with me oil, refined petroleum products and makes it difficult to adequately guard on these amendments and for including liquified natural gas. against a potential terrorist attack. them in the final bill. As imported energy becomes a larger Traditionally, our seaports are share of the U.S. energy supply, we be- viewed as highly vulnerable targets for Specifically, these amendments will: come more vulnerable to terrorist at- terrorist attacks. They are open improve our ability to safely handle tacks. spaces, full of traffic, and difficult to cargo entering our country; provide the The energy trade itself creates new monitor. Yet an attack against one of Coast Guard with additional anti-ter- terrorist targets. our larger seaports could dramatically rorism resources to protect domestic In the aftermath of September 11th, impact our domestic economy by de- ports; and provide for the most modern the Coast Guard was forced to suspend stroying cargo, eliminating jobs, and security technology to be deployed in LNG shipments in to Boston Harbor for shutting off trading routes to other seaports. fear of those ships being used for ter- shippers. My first amendment is an anti-tam- ror. Unfortunately, we have let our guard pering amendment that will ensure What else is aboard those foreign down with respect to our seaports by that the cargo we accept in our coun- flagged supertankers that enter our failing to adequately address the po- try has not been altered or interfered ports from the Middle East? tential for a terrorist attack. We know with. The amendment improves port What is hidden in the holds? Biohaz- how important our seaports are to our security by allowing Customs to work ards? Chemical warfare? national and global economy, yet at with ocean shippers to better coordi- What else has that crew been trained best, inspectors are able to examine nate the tracking of cargo in our ports to do? only about two percent of the cargo and across our country. It will improve These situations take on a new sense that passes through our seaports. This security by enabling Customs to better of reality after September 11. means that the vast majority of cargo assist shippers in preventing cargo My colleagues are well aware of my entering our seaports is not inspected tampering and cargo theft. It will also efforts to reduce our dependence on for- before the containers are allowed to improve security by enabling Customs eign oil and foreign supertankers by move throughout the country. We can, to track containers as they move cross- using our own domestic resources. and must, do better. country to ensure that they are not di- The longer we wait, the more vulner- We must improve the quality of and verted for criminal or terrorist pur- able we become. deployment of detection technology poses. The majority leader has used par- and we must make sure that those who My second amendment establishes liamentary tactics to subvert the will guard our seaports are equipped to pre- Port and Maritime Security Teams, of the Senate and delay voting on our vent an attack. We have technology teams of Coast Guard personnel with energy independence. that scans containers to look for sus- training in anti-terrorism, drug inter- That is a debate that still lies before picious materials and shipments. It is diction, and navigation assistance. us. in place right now, but not at all our These units will operate high-speed But for today, as long as we remain seaports and not even at all of the larg- boats that are equipped to patrol our dependent, we must do all we can to est seaports. We need to expand the de- coastal waters and respond imme- protect the safety of those ships and ployment of this type of technology, diately to terrorist or other criminal that energy. and make sure all our seaports are threats to our coast and seaports. My amendment which is now in- equipped with the best available scan- Similar teams are already used to pro- cluded in this bill makes certain that ning technology. We must also make tect U.S. vessels in foreign ports, my those who are the most knowledgeable sure that the Coast Guard has the man- amendment brings them to our domes- in this most critically-important as- power and equipment it needs to pro- tic defense.

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00111 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S13884 CONGRESSIONAL RECORD — SENATE December 20, 2001 My final amendment will ensure that right to the point. It really was not a sensus is that a new stimulus package is the best available technology is de- stimulus at all. Over a month ago, Jo- needed; the president has ordered Congress ployed in our seaports to improve secu- seph Stiglitz wrote an article entitled to have one on his desk by the end of the rity, identify threats, and prevent ter- ‘‘A Boost That Goes Nowhere.’’ I ask month. Much of the stimulus debate has fo- cused on the size of the package, but that is rorist attacks. The grant program unanimous consent that this article be largely beside the point. A lot of money was would cover technologies to deal with printed in the RECORD. spent on the Bush tax cut. But the $300 and such security risks as: explosives, fire- There being no objection, the article $600 checks sent to millions of Americans arms, weapons of mass destruction, was ordered to be printed in the were put largely into savings accounts. chemical and biological weapons, drug RECORD, as follows: What worries me now is that the new pro- and illegal alien smuggling, and trade [From the Washington Post, Nov. 11, 2001] posals—particularly the one passed by the Republican-controlled House—are also likely fraud. This amendment is so impor- A BOOST THAT GOES NOWHERE to be ineffective. The House plan would rely tant, because the type of cargo and (By Joseph Stiglitz) heavily on tax cuts for corporations and containers that move through seaports The United States is in the midst of a re- upper-income individuals. The bill would put are entirely different than what moves cession that may well turn out to be the zero—yes, zero—into the hands of the typical through our airports, and we need to worst in 20 years, and the Republican-backed family of four with an annual income of make sure we are developing tech- stimulus package will do little to improve $50,000. Giving tax relief to corporations for nology that recognizes those dif- the economy-indeed it may make matters past investments may pad their balance ferences. Only about 2 percent of the worse. In the short term, unemployment will sheets but will not lead to more investment continue to rise and output will fall. But the cargo entering our seaports is in- now when we need it. Bailouts for airlines U.S. economy will eventually bounce back— didn’t stop them from laying off workers and spected, without better technology, we perhaps in a year or two. More worrying is adding to the country’s unemployment. are leaving ourselves too vulnerable to the threat a prolonged U.S. recession poses The Senate Republican bill, which the ad- those who would exploit our seaports to the rest of the world. ministration backs, in some ways would for terrorist or criminal activity. Already we see inklings of the downward make things even worse by granting bigger Again, I would like to express my spiral that was part of the Great Depression benefits to very high earners. For instance, of 1929: Recession in Japan and parts of East thanks to Chairman HOLLINGS and Sen- the $50,000 family would still get zero, but Asia and bare growth in Europe are contrib- ator MCCAIN for helping make sure this plan would give $500,000 over four years uting to and aggravating the U.S. downturn. that these amendments were included to families making $5 million a year—and Emerging countries stand to lost the most. much of that after (one hopes) the economy in the final bill and for making sure Globalization has been sold to people in the has recovered. It directs very little money to that we take aggressive action to pro- developing world as a promise of unbounded those who would spend it and offers few in- tect our seaports. prosperity—or at least more prosperity than centives for investment now. AMENDMENT NO. 2690 they have ever seen. Now the developing It would not be difficult to construct a pro- The PRESIDING OFFICER. Under world, especially Latin America, will see the gram with a much bigger bang for the buck: darker side of its links to the U.S. economy. America’s unemployment insurance sys- the previous order, there is an amend- It used to be said that when America tem is among the worst in the advanced in- ment in order. The clerk will report sneezed, Mexico caught a cold. Now, when dustrial countries; give money to people who the amendment. America sneezes, much of the world catches have lost their jobs in this recession, and it The legislative clerk read as follows: cold. And according to recent data, America would be quickly spent. The Senator from South Carolina [Mr. is not just sneezing, it has a bad case of the Temporary investment tax credits also HOLLINGS], for himself, Mr. MCCAIN, and Mr. flu. would help the economy. They are like a GRAHAM, proposes an amendment numbered October unemployment figures show the sale—they induce firms to invest now, when 2690. largest monthly increase in two decades. The the economy needs it. gap between the United State’s potential In every downturn, states and localities (The text of the amendment is print- gross domestic product—what it would be if have to cut back expenditures as their tax ed in today’s RECORD under ‘‘Amend- we had been able to maintain an unemploy- revenues fall, and these cutbacks exacerbate ments Submitted.’’) ment rate of around 4 percent—and what is the downturn. A revenue-sharing program Mr. HOLLINGS. Mr. President, I urge actually being produced is enormous. By my with the states could be put into place the adoption of the amendment. It is a calculations, it is upwards of $350 billion a quickly and would prevent these cutbacks, managers’ amendment agreed to by year! This is an enormous waste of resources, thus preserving vitally needed public serv- Senators MCCAIN, GRAHAM, HUTCHISON, a waste we can ill afford. ices. Many high-return public investments and myself. It is widely held that every expansion has could be put into place quickly—such as ren- within it the seeds of its own destruction— ovating our dilapidated inner-city schools. The PRESIDING OFFICER. The and that the greater the excesses, the worse This may all sound like partisan (Demo- question is on agreeing to amendment the downturn. The Great Boom of the 1990s cratic) economies, but it’s not. It’s just ele- No. 2690. had marked excesses. Irrational optimism mentary economics. If you really don’t think The amendment (No. 2690) was agreed has been followed by an almost equally irra- the economy needs a stimulus, either be- to. tional pessimism. Consumer confidence is at cause you think the economy is not going Mr. HOLLINGS. I urge passage of the its lowest level in more than seven years. into a tailspin or because you think mone- bill, as amended. The low personal savings rate that marked tary policy will do the trick, only then The PRESIDING OFFICER. Does the the Great Boom may put even more pressure would you risk a minimal-stimulus package of consumers to cut back consumption now. of the kind the Republicans have crafted in Senator yield back all time? It seemed to me that we were headed for a both the House and Senate. Mr. HOLLINGS. I yield back all time. recession even before Sept. 11. In the coming But what matters is not just how I or other The PRESIDING OFFICER. All time months we will have the numbers that make economists see this: It matters how markets, having been yielded back, the question clear that we are squarely in one now. The both here and abroad, see things. The fact is on the engrossment and third read- economic cost of the attacks went well be- that medium- and long-term bond rates (that ing of the bill. yond the direct loss of property, or even the is, bonds that reach maturity in five or 10 The bill was ordered to be engrossed disruption to the airlines. Anxieties impede years or more) have not come down in tan- for a third reading and was read the investment. The mood of the country dis- dem with short-term rates is not a good sign. Nor is the possibility that the interest rates third time. courages the consumption binge that would have been required to offset the reduction in some firms pay for borrowing for plant and The PRESIDING OFFICER. The bill investment. equipment may actually have increased. having been read the third time, the In any case, monetary policy—the Federal In 1993, a plan of tax increases and expendi- question is, Shall the bill pass? Reserve’s lowering of short-term interest ture cuts that were phased in over time, pro- The bill (S. 1214) was passed. rates to heat up the economy—has been vast- viding, reassurances to the market that fu- Mr. HOLLINGS. Mr. President, may I ly oversold. Monetary policy is far more ef- ture deficits would be lower, led to lower be recognized? fective in reining in the economy than in long-term interest rates. It should come as The PRESIDING OFFICER. The Sen- stimulating it in a downturn, a fact that is no surprise, then, that the Bush package, with its tax decreases and expenditure in- ator from South Carolina. slowly becoming apparent as the economy continues to sink despite a massive number creases, would do exactly the opposite. The f of rate cuts; Tuesday’s was the 10th this Federal Reserve controls the short-term in- ECONOMIC STIMULUS year. terest rates—not the medium- and long-term The Bush administration’s tax cut, which ones that firms pay when they borrow money Mr. HOLLINGS. Mr. President, with was also oversold as a stimulus, is likely to to invest, or that consumers pay when they respect to the stimulus bill, let’s go haunt the economy for years. Now the con- borrow to buy a house, which are still far

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00112 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S13885 higher than the short-term rate, which now slowest growth in nominal GDP in any two take effect until 2003, when the recession is stands at its lowest level in 40 years. What- consecutive years since the 1930’s. Americans likely to be long over. ever monetary policy does in lowering short- love records, but unfortunately, these new Senate Democrats are headlining a $600 tax term rates can be largely undone by an ad- ones are contributing to the already perva- rebate for working-poor families that didn’t ministration’s misguided fiscal policy, which sive sense of anxiety. The Bush administra- earn enough to benefit from last summer’s can increase that gap between short and long tion will not try to claim credit for these income-tax rebates, as well as a one-month rates; that gap has widened considerably. new records; rather, it will blame Sept. 11. holiday from payroll taxes. It’s a nice appeal Worse still, America has become dependent Osama bin Laden is a convenient excuse, but to their blue-collar political base, but nor- on borrowing from abroad to finance our the data will show his murderous henchmen mally fractious economists almost all agree huge trade deficits; and the reduction in the were aiding and abetting at best: The econ- it’s no stimulus: Repeated studies show one- surplus is likely to exacerbate this (on aver- omy was already sliding toward recession. shot cash windfalls are likely to go to reduce age, the two move together). If foreigners be- I wish I could be more optimistic about our debt or bolster savings, not to spending that come even less confident in America, they economy’s prospect. I worry that all of this would stimulate the economy. Similarly, ex- will shift their portfolio balance, putting naysaying will simply contribute to the tending unemployment benefits and helping more of the money elsewhere. That adjust- downturn. Perhaps I am wrong, and the econ- to pay for health insurance sound like noble ment process itself could put strain on the omy will, on its own, recover quickly. objectives—but backdoor welfare, even if U.S. economy. Before the terrorist attacks, But perhaps I am right. Then, without an needed, is no kick-start for a troubled mar- confidence abroad in America and the Amer- effective stimulus, the U.S. economy will ketplace. ican economy had eroded, with the bursting sink deeper into recession, and the rest of The Bush administration murmurs piously of the stock and dot-com bubbles. The two the world with it. An ineffective stimulus about compromise, but what the president remaining pillars of strength were the qual- could be even worse: It would harm budg- and his aides are hinting at looks a lot like ity of our economic management and our etary prospects, raising medium- and long- the old Washington game: doling out the po- seeming safety. Both of these have now been term interest rates. And when we see the litical bonbons for both sides to claim vic- questioned—and the stimulus package likely false claims for what they are, confidence in tory, with little concern for economic jus- to become law has nothing to allay for- our economy and in our economic manage- tification. eigners’ fears. ment will deteriorate further. We have had a Meanwhile, the money just isn’t there. The As a former White House and then World first dose of this particular medicine. We return to red ink is so abrupt that the Treas- Bank official, I have had the good (or bad) hardly need another. ury asked Tuesday for a hike in the govern- fortune to watch downturns and recessions Mr. HOLLINGS. Mr. President, ear- ment’s borrowoing limit, to a whopping $6.7 around the world. Two features are worth trillion. The current ceiling, $5.95 trillion noting. lier this week USA Today had an edi- and just three months ago headed rapidly First, standard economic models perform torial entitled ‘‘Shopping for 2002 downward, may be reached as soon as Feb- particularly badly at such times, they al- Votes, Dems, GOP Raid Surplus.’’ ruary. most always underestimate the magnitude of I will read the last sentence: In Washington, putting on a great show of the downturn. One relies on these models In Washington, putting on a great show of activity to demonstrate concern for anyone’s only at one’s peril. The International Mone- activity to demonstrate concern for anyone’s economic hurt may seem to be smart poli- tary Fund and the U.S. Treasury badly un- economic hurt may seem to be smart poli- tics. But sometimes the best thing the gov- derestimated the magnitude of the Asian tics. But sometimes the best thing the gov- ernment can do is nothing. This is one such downturns of 1997—and this mistake was at ernment can do is nothing. This is one such time. least partly responsible for the disastrous time. Mr. HOLLINGS. Mr. President, the IMF policies prescribed in Indonesia, Thai- I ask unanimous consent that the Wall Street Journal printed an article land and elsewhere. Second, there are long lags and editorial be printed in the RECORD. earlier this week on Monday entitled, irreversibilities: Once it is clear that the There being no objection, the edi- ‘‘The Stimulus Fiasco.’’ I ask unani- downturn is deep, and a stronger dose of torial was ordered to be printed in the mous consent this article be printed in medicine is administered, it takes six RECORD, as follows: the RECORD. months to a year for the effects to be fully [From the USA-Today, Dec. 17, 2001] There being no objection, the mate- felt. Meanwhile, the consequences can be se- SHOPPING FOR 2002 VOTES, DEMS, GOP RAID rial was ordered to be printed in the vere. The bankrupt firms do not become SURPLUS RECORD, as follows: unbankrupt and start functioning again. Downturns are likely to be particularly se- DESPITE SIGNS OF ECONOMIC RECOVERY, [From the Wall Street Journal, Dec. 17, 2001] vere when the economy is hit by a series of CONGRESS INSISTS ON ‘STIMULUS’. THE STIMULUS FIASCO adverse shocks. Market economies such as What’s wrong with this picture? In the not-so-epic battle over fiscal ‘‘stim- ours are remarkably robust. They can with- Just two weeks ago, the White House an- ulus,’’ the shouting has all come down to stand a shock or two. But even before ter- nounced that not only have last winter’s pre- this: The White House is demanding that the rorism came ashore, America had been hit dictions of massive budget surpluses evapo- 27% income-tax rate, be cut to 25%, while badly. The attacks added political uncer- rated, but major deficits are predicted for at Senate Majority Leader Tom Daschle is in- tainty to the already great economic uncer- least the next three years, as well. sisting on a mere 26%. Only in Washington tainty. State governors from both parties are would anyone believe that either one is So here we are, facing a major downward warning that homeland-security needs are going to make much economic difference. spiral. This is where eroding confidence in going unaddressed for lack of funding. If this is all that the politicians can come economic management comes into play. Yet, instead of recognizing these new reali- up with, we have a modest proposal: Pack it John Maynard Keynes, the founder of mod- ties, Congress and the White House are in. The economy will be better off if Presi- ern macroeconomics, (including the notion spending the last days before their holiday dent Bush calls the whole thing off and in- of the stimulus) emphasized the importance recess trying to enact a hugely expensive stead focuses on abosrbing the lessons of this and vagaries of investers’ ‘‘animal spirits’’— ‘‘economic stimulus’’ package that is packed political fiasco. that is, the unpredictability of their opti- with tax cuts and social spending. And Not that we expect this to happen. The mism and pessimism. But expectations, ra- they’re doing so even as the economy is point of this exercise long ago stopped being tional or irrational, about the future are of showing signs of recovering on its own. economic growth and became political ad- no less importance to consumers. Those who Stimulus clearly is not more dangerous vantage. Mr. Bush wants to be able to sign are worried about losing their jobs are more than the lack of one. yet, instead of spiking something—anything—he can call ‘‘stim- likely to cut back on their spending and to the idea, congressional Democrats and Re- ulus’’ to show voters he isn’t like his father save the proceeds from any tax cuts. publicans are seeking a compromise. Not be- and cares about more than foreign policy. It was great fun being part of the Great Ex- cause the economy needs a jolt, but because Mr. Daschle knows this, so he wants to deny pansion. Every week brought new records— each party sees it as an opportunity to score Mr. Bush any tax cuts that might actually the lowest unemployment rate in a quarter- some points in the 2002 congressional cam- stimulate in favor of loading up on tax re- century, the lowest inflation rate in two dec- paigns: bates, jobless benefits, health-care subsidies ades, the lowest misery index in three. The House Republicans, on a largely party-line and other things that will redistribute in- good news fed on itself, and the confidence vote, passed a $100-billion package of tax come to his political constituencies. And it helped fuel the expansion. We took credit cuts targeted overwhelmingly at corpora- looks as if he’s going to prevail. where we could, but I knew that much of this tions and individuals with incomes in the top This is clear from Mr. Bush’s latest was good luck—and the Clinton administra- 5% of the nation, coincidentally among the counter-offer last week to Mr. Daschle dic- tion and Fed not messing things up. biggest sources of political contributions. tating the terms of his own surrender. Gone Now, every week brings new records in the The biggest tax breaks for business weren’t was the across-the-board acceleration of in- other direction—the largest increase in un- targeted at job creation but at refunding dividual income-tax rates that he originally employment and decline in manufacturing in taxes already paid as long ago as 1986. Many wanted and that his own economists believe two decades, the first quarterly fall in con- of the cuts for individuals—questionable dur- would be the best economic medicine. Mr. sumer prices in nearly a half-century, the ing a budget squeeze in any case—wouldn’t Bush is still requesting some corporate tax

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00113 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S13886 CONGRESSIONAL RECORD — SENATE December 20, 2001 relief, such as a temporary speedup in depre- hard times a better domestic political strat- 5048.62 in March 2000 and now stands at ciation and scaling back the corporate alter- egy and a stronger economic team. 1918.89. Because companies in the Nasdaq native minimum tax. But these will only pad Mr. HOLLINGS. I will read the last Composite Index now have a cumuluative business balance sheets for a while and do sentence: loss, for the first time in memory the little to alter long-term incentives. Mean- Nasdaq’s value can’t be gauged using the But in the long run [Mr. Bush] owes Ameri- while, the President gave in to Mr. Daschle popular price-earnings ratio, which divides cans coping with hard times a better domes- on tax rebates for low-in-come Americans the price of stocks by their earnings. That tic political strategy and a stronger eco- who didn’t get them last summer—that is, means it is impossible to say whether the nomic team. for people who pay little or no income tax market is cheap or expensive in historical anyway. That is the first time I heard the terms. What really matters now is not whether a Wall Street Journal ask for a stronger The extent of the losses surprised a senior deal is struck this week but what lessons Mr. economic team. The reason is because Nasdaq official, who asked not to be named. Bush learns from his looming defeat. We’d we are in deep trouble. ‘‘I wouldn’t have thought they were that suggest at least two. The first is that only We ended up last fiscal year, which high,’’ he said. thing bipartisan abut Mr. Daschle is his ended just 3 months ago, on September Nasdaq spokesman Andrew MacMillan, smile. Like his mentor, George Mitchell, while not disputing the losses, pointed to the who destroyed Mr. Bush’s father, Mr. 30 with a deficit of $141 billion. That $1.5 trillion in revenue Nasdaq companies Daschle wants to make Mr. Bush a one-term was not as a result of September 11. generated over the past year, saying that President. Rumors abound that the South I ask unanimous consent to print in represented ‘‘a huge contribution to the Dakotan plans to run himself, but even if he the RECORD a Wall Street Journal edi- economy, to productivity, and to people’s doesn’t he represents a Senate Caucus loaded torial dated August 16. lives . . . regardless of what’s happening to with other potential candidates (John Kerry, There being no objection, the mate- the bottom line during a rough business Joe Lieberman, John Edwards, Hillary Clin- rial was ordered to be printed in the cycle.’’ Satya Pradhuman, director of small-cap- ton, Joe Biden). RECORD, as follows: All of them are pursuing the Daschle strat- italization research at Merrill Lynch, says [From the Wall Street Journal, Aug. 16, 2001] egy of wrapping their arms around a popular the recent massive losses tell a story of a President on the war. But on domestic policy NASDAQ COMPANIES’ LOSSES ERASE 5 YEARS market where investors became focused on they are competing against one another for OF PROFIT revenue instead of earnings. With billions of advantage among the Democratic Party’s (By Steve Liesman) dollars in financing chasing every glimmer liberal interest groups. This critical mass of Mounting losses have wiped out all the cor- of an Internet idea, Mr. Pradhuman says, a Presidential ambition is inevitably pulling porate profits from the technology-stock lot of companies came to market long before the entire Democratic Senate to the left. In boom of the late 1990s, which could make the they were ready. the stimulus debate, it explains why Mr. road back to the previous level of profit- ‘‘The underwriting was very aggressive, so Daschle established the absurd condition ability longer and harder than previously es- earlier-stage companies came to market that any ‘‘bipartisan’’ compromise had to be timated. than the kind of companies that came to supported by two-thirds of all Senate Demo- The massive losses reported over the most market five or 10 years ago,’’ he adds. He be- crats. That means any 17 Democrats can kill recent four quarters by companies listed on lieves there is plenty of potential profit- anything, and there are more than enough the Nasdaq Stock Market have erased five ability out there in this crop of young com- Caucus liberals to do that. years’ worth of profits, according to figures panies, But, he notes, ‘‘only among those If Mr. Bush wants to know where Demo- from investment-research company that survive.’’ crats will go next, all he had to do was watch Multex.com that were analyzed by The Wall The data show that the very companies Mrs. Clinton a week ago Sunday on NBC’s Street Journal. whose technology products were supposed to ‘‘Meet the Press.’’ While praising Mr. Bush Put another way, the companies currently boost productivity and help smooth out the to the skies on the war, she also came out for listed on the market that symbolized the business cycle by providing better informa- repealing the tax cuts that the Congress al- New Economy haven’t made a collective tion have been among the hardest-hit in this ready passed this summer. By not fighting dime since the fall of 1995, when Intel intro- economic slowdown. ‘‘Management got harder to accelerate all of his rate cuts now, duced the 200-megahertz computer chip, Bill caught up with how smart they were and the President has left himself open to a Clinton was in his first term in office and the completely forgot about the business cycle three-year defensive battle to keep what he’s O.J. Simpson trial obsessed the nation. and competition,’’ says Mr. Yardeni. ‘‘They already won. ‘‘What it means is that with the benefit of were managed for only ongoing success.’’ Mr. Bush might as well recognize this now hindsight, the late ’90s never happened,’’ To be sure, some of Nasdaq’s largest star- and plan accordingly. The only way he will says Robert Barbera, chief economist at powered companies earned substantial sums get anything done in the Senate between Hoenig & Co. over the period. Intel led the pack with $37.6 now and 2004 is to move public opinion on The Wall Street Journal analysis looked at billion in profit before extraordinary items the issues or beat Democrats at the polls in earnings excluding extraordinary items since September 1995, followed closely by 2002. The worst habit in this environment is going back to September 1995 for about 4,200 Microsoft’s $34.6 billion in earnings. To- to negotiate with yourself, which is what has companies listed on Nasdaq, which is heavily gether, the 20 most profitable companies happened to Mr. Bush on ‘‘stimulus.’’ The weighted toward technology stocks but also earned $153.3 billion, compared with losses of President first gave Democrats $40 billion in includes hundreds of financial and other $140.9 billion for the 20 least profitable. In- new spending, but got no tax promises in re- growth companies. For the most recently re- cluded in the losses was a $44.8 billion write- turn. Then he conceded on jobless benefits, ported four quarters, those companies tallied down of acquisitions by JDS Uniphase and but also got nothing, then on tax rebates, for $148.3 billion in losses. That roughly equaled an $11.2 billion charge by VeriSign, also to which Mr. Daschle seems to have handed him the $145.3 billion in profit before extraor- reduce the value on its book of companies it only the token one-percentage point cut in dinary items these companies have reported had bought with its high-price stock. the 27% rate. since September 1995. Because companies These charges lead some analysts and The second lesson is that Mr. Bush’s eco- have different quarter-ending dates, the economies to believe that including these nomic team failed him. Counselor Larry analysis doesn’t entirely correspond to cal- losses overstates the magnitude of the de- Lindsey gave him outdated Keynesian ad- endar quarters. cline. According to generally accepted ac- vice, assuring him against all evidence that Large charges that aren’t considered ex- counting principles, these write-offs are tax rebates would spur growth. Treasury traordinary items were responsible for much treated as regular expenses. But corporate Secretary Paul O’Neill has provided no direc- of the red ink, including restructuring ex- executives say they should be treated as one- tion that we’ve noticed, offering only ten- penses and huge write-downs of inventories time items. ‘‘It’s an accounting entry rather tative counsel on policy and tripping over and assets acquired at high prices during the than a true loss,’’ maintains Bill Dudley, his own tongue on the politics. If this team technology bubble. chief U.S. economist at Goldman Sachs were running the war in Afghanistan, the Analysts, economists and accountants say Group. Marines would be the ones surrounded at these losses raise significant doubts about Removing these unusual charges, the Tora Bora. both the quality of past reported earnings losses over the most recently reported four The silver lining is that the economy may and the potential future profit growth for quarters shrink to $6.5 billion on a before-tax recover on its own without any fiscal stim- these companies. Ed Yardeni, chief invest- basis. By writing down the value of assets, ulus. Ed Hymen of the ISI Group says he sees ment strategist at Deutsche Banc Alex. companies have used the slowdown to clean more signs of recovery by the week, oil Brown, said the losses raise the question of up their balance sheets, a move that should prices are down and the Fed has provided ‘‘whether the Nasdaq is still too expensive. allow them to move forward with a smaller ample liquidity (maybe too much if you look These companies aren’t going to give us the expense base and could pump up future earn- at the 10-year Treasury bond rate that hasn’t kind of awesome performance they did in the ings. fallen with Fed easing). This means Mr. Bush ’90s, because a lot of it wasn’t really sustain- ‘‘It sets the table for future dramatic can afford to reject the phony stimulus that able.’’ growth,’’ says independent accounting ana- is now emerging from Congress. But in the The Nasdaq Composite Index stood at lyst Jack Ciesielski. Because of the write- long run he owes Americans coping with around 1043 in September 1995, soared to downs, ‘‘when the natural cycle begins again,

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00114 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S13887 the returns on assets and returns on equity What really hearkened this par- money boys who really govern the eco- will look fantastic.’’ But Mr. Ciesielski adds ticular Senator because we never seem nomic affairs of this country—the $2 that this benefit will be short-lived. to learn. The same act, same scene 20 trillion is still going to be lost. Cicso Systems in the first quarter took a $2.25 billion pretax inventory charge. This years ago: David Stockman, the head How much are we up? I ask unani- of President Reagan’s economic team, quarter, it partly reversed that write-down mous consent to print in the RECORD, the Director of his Office of Manage- taking a gain of $187 million from the revalu- the deficit to the penny as included by ment and Budget, in his book, ‘‘The ation of the previously written-down inven- none other than the Secretary of tory. The reversal pushed Cisco into the Triumph of Politics,’’ talks about the Treasury. black. Trojan horse, growth-growth, Kemp- But Mr. Barbera warns that investors Roth, and what we had entitled ‘‘voo- It is entitled the Public Debt to the shouldn’t be so quick to ignore the unusual Penny. That is the Secretary of the charges. For example, during good times it doo No. 1.’’ Now we have voodoo No. 2. wasn’t unusual for companies to book large Referring to voodoo No. 1 on page 342, Treasury. I ask unanimous consent gains from investments in other companies. at the end of the year in November that this document be printed in the Now that the value of those investments are after they passed the tax cuts, we im- RECORD. under water, companies are calling the losses mediately went into recession, which is There being no objection, the mate- unusual. ‘‘If they are going to exclude the exactly what has happened in the year rial was ordered to be printed in the unusual losses, then they should exclude the 2001. RECORD, as follows: unusual gains,’’ says Mr. Barbera. I quote: Mr. HOLLINGS. I read from the arti- [President Reagan] had no choice but to re- THE DEBT TO THE PENNY cle: peal, or substantially dilute, the tax cut. The Wall Street Journal analysis looked at Can you imagine that? Amount earnings excluding extraordinary items He had no choice but to repeal, or substan- going back to September 1995 for about 4,200 Current: tially dilute, the tax cut. That would have 12/19/2001 ...... $5,883,339,152,814.48 companies listed on Nasdaq, which is heavily gone far toward restoring the stability of the Current Month: weighted toward technology stocks, but also strongest capitalist economy in the world. It 12/18/2001 ...... 5,881,570,635,636.22 includes hundreds of financial and other 12/17/2001 ...... 5,875,160,714,473.71 would have been a great act of statesman- 12/14/2001 ...... 5,875,869,812,211.80 growth companies. For the most recently re- ship to have admitted the error back then, 12/13/2001 ...... 5,875,559,240,572.48 ported four quarters those companies tallied but in the end it proved too mean a test. In 12/12/2001 ...... 5,877,463,679,105.98 $148.3 billion in losses. That roughly equaled 12/11/2001 ...... 5,879,691,857,799.79 November 1981, Ronald Reagan chose not to 12/10/2001 ...... 5,877,125,427,843.37 the $145.3 billion in profit before extraor- be a leader but a politician, and in so doing 12/07/2001 ...... 5,874,922,950,915.27 dinary items these companies have reported he showed why passion and imperfection, not 12/06/2001 ...... 5,877,883,213,016.24 since September 1995. 12/05/2001 ...... 5,868,016,815,751.26 reason and doctrine, rule the world. His ob- 12/04/2001 ...... 5,867,886,281,057.86 It is as if the last 5 years never oc- stinacy was destined to keep America’s econ- 12/03/2001 ...... 5,862,832,382,763.04 Prior months: curred. What did I have to listen to as omy hostage to the errors of his advisers for 11/30/2001 ...... 5,888,896,887,571.34 a long-time member of the Budget a long time. 10/31/2001 ...... 5,815,983,290,402.24 Prior fiscal years: Committee? Surpluses as far as the eye That is exactly our dilemma now. 09/28/2001 ...... 5,807,463,412,200.06 can see, they said in June when the For those who regret the non-passage 09/29/2000 ...... 5,674,178,209,886.86 09/30/1999 ...... 5,656,270,901,615.43 President signed the $2.3 trillion tax of the stimulus bill, go to Sunday 09/30/1998 ...... 5,526,193,008,897.62 cut. I want to say it right as a Senator school and thank the Good Lord be- 09/30/1997 ...... 5,413,146,011,397.34 09/30/1996 ...... 5,224,810,939,135.73 saying we ought to be increasing reve- cause—as Stiglitz said and as the USA 09/29/1995 ...... 4,973,982,900,709.39 nues, paying our way. Today said and as the Wall Street 09/30/1994 ...... 4,692,749,910,013.32 I see the distinguished former Gov- 09/30/1993 ...... 4,411,488,883,139.38 Journal said and now as Dave Stock- 09/30/1992 ...... 4,064,620,655,521.66 ernor of Florida in the Chamber. We man said 20 years ago—we ought to be 09/30/1991 ...... 3,665,303,351,697.03 could not get by as Governors in our 09/28/1990 ...... 3,233,313,451,777.25 removing those tax cuts, repealing that 09/29/1989 ...... 2,857,430,960,187.32 States unless we had a triple-A credit $2.3 trillion. 09/30/1988 ...... 2,602,337,712,041.16 rating. None of these industries are It is not the confidence of consumers, 09/30/1987 ...... 2,350,276,890,953.00 going to expand and come to us at all. it is the confidence of the market. The Source: Bureau of the Public Debt. THE DEBT TO THE PENNY AND WHO HOLDS IT [Beginning 1/31/2001]

Intragovernmental hold- Debt held by the public ings Total

Current: 12/19/2001 ...... 3,410,253,888,547.10 2,473,085,264,267.38 5,883,339,152,814 Current month: 12/18/2001 ...... 3,409,529,106,007.83 2,472,041,529,628.39 5,881,570,635,636 12/17/2001 ...... 3,409,404,133,952.59 2,465,756,580,521.12 5,875,160,714,473 12/14/2001 ...... 3,411,315,816,347.79 2,464,553,995,864.01 5,875,869,812,211 12/13/2001 ...... 3,411,300,511,893.02 2,464,258,728,679.46 5,875,559,240,572 12/12/2001 ...... 3,410,599,497,172.45 2,466,864,181,933.53 5,877,463,679,105 12/11/2001 ...... 3,410,412,991,136.99 2,469,278,866,662.80 5,879,691,857,799 12/10/2001 ...... 3,410,374,030,620.89 2,466,751,397,222.48 5,877,125,427,843 12/07/2001 ...... 3,410,332,012,889.24 2,464,590,938,026.03 5,874,922,950,915 12/06/2001 ...... 3,409,948,417,231.43 2,467,934,795,784.81 5,877,883,213,016 12/05/52001 ...... 3,399,263,255,412.91 2,468,753,560,338.35 5,868,016,815,751 12/04/2001 ...... 3,399,212,246,226.65 2,468,674,034,831.21 5,867,886,281,057 12/03/2001 ...... 3,399,094,184,616.49 2,463,738,198,146.55 5,862,832,382,763 Prior months: 11/30/2001 ...... 3,404,026,838,038.17 2,484,870,049,533.17 5,888,896,887,571 10/31/2001 ...... 3,333,039,379,996.92 2,482,943,910,405.32 5,815,983,290,402 Prior fiscal years: 09/28/2001 ...... 3,339,310,176,094.74 2,468,153,236,105.32 5,807,463,412,200

THE DEBT TO THE PENNY AND WHO HOLDS IT [Thru 1/30/2001]

Intragovernmental hold- Debt held by the public ings Total

Prior months: 01/30/2001 ...... 3,369,903,111,703.32 2,370,388,014,843.13 5,740,291,126,546 12/29/2000 ...... 3,380,398,279,538.38 2,281,817,734,158.99 5,662,216,013,697 11/30/2000 ...... 3,417,401,544,006.82 2,292,297,737,420.18 5,709,699,281,427 10/31/2000 ...... 3,374,976,727,197.79 2,282,350,804,469.35 5,657,327,531,667 Prior fiscal years: 09/29/2000 ...... 3,405,303,490,221.20 2,268,874,719,665.66 5,674,178,209,886 09/30/1999 ...... 3,636,104,594,501.81 2,020,166,307,131.62 5,656,270,901,633 09/30/1998 ...... 3,733,864,472,163.53 1,792,328,536,734.09 5,526,193,008,897 09/30/1997 ...... 3,789,667,546,849.60 1,623,478,464,547.74 5,413,146,011,397

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00115 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S13888 CONGRESSIONAL RECORD — SENATE December 20, 2001 Mr. HOLLINGS. We are already $76 an eloquent velvet glove, displayed Party, took capital gains tax off the billion in the red in addition to the $141 once again, similar to what we have table because it was not well received billion we ended up in the red this last done on other issues like insurance and by Democrats. Was there any recip- fiscal year. We had to listen to Alan like a stimulus package earlier on. rocation on the part of the Democratic Greenspan say, ‘‘Oh, wait a minute; we Today that iron fist smashed the leadership? No. might pay off the debt too quick.’’ White House Centrist agreement. The This is not to say we did not agree on We had $5.6 trillion and surpluses as American people will not be well some things. Bonus depreciation, for far as the eye could see, and now what served by the destruction of the White instance, was agreed to by each side. do they need to do? They need to in- House Centrist agreement. All it means Although we did not have it in our cau- crease the debt limit. They asked us is that after 3 months of long meetings, cus position, Republicans agreed with the other day, let us increase the debt committee action, floor debates, we, Democrats on liberalizing the net oper- limit. the Senate, will not deliver to the ating loss rules and expensing for small The debt limit, according to the American people. business. budget and economic outlook for fiscal The House has delivered. The Presi- I do not also discount the ideologi- years at the beginning of the year, dent has delivered. One has to wonder, cally based opposition to accelerating they said, and I quote: ‘‘Under those then, why are we stuck? If we can get the reduction of the 27 percent bracket, projections, the debt ceiling would be a bipartisan majority in the Senate, but it is amazing to me that many on reached in 2009.’’ That is what they action by the House and a signature by the other side see taxpayers in the 27 told us 11 months ago, that in 2009 the the President, why does a partisan mi- percent bracket as rich people. debt limit was going to be reached. The nority of the majority party decide to A 2 percent rate cut for single folks first order of business when we come thwart the will of the people? Why, es- earning between $27,000 and $65,000 is back in January and February is to in- pecially now? seen as a tax cut for the very wealthy crease the debt limit, all on account of Our Nation is in a state of war on ter- by the Democrat leadership. Likewise, a rosy scenario, all on account of— rorism. Our President is necessarily oc- a married couple with incomes between what do they call it?—voodoo number cupied as Commander in Chief to run $45,000 and $109,000 are considered rich. two. that war. Why, on a matter of eco- I recognize this tax cut proposal was We better sober up and start paying nomic stimulus and aid to dislocated difficult for the Democratic leadership the bill in Washington. workers, did the President have to to accept. After a series of bipartisan, I yield the floor. come to the Hill yesterday to try and bicameral talks, the House went its The PRESIDING OFFICER. The Sen- break a logjam? Why did the Demo- own way with a bill; too heavy for me ator from Iowa. cratic leadership give his effort the on corporate AMT. It passed by just f back of their hand? Why did the bipar- two votes. tisan objectives go by the wayside? I The Senate Democratic leadership LACK OF ACTION ON STIMULUS will take a few minutes to talk about responded in kind. The result was a BILL how we got here. Democratic Caucus partisan position Mr. GRASSLEY. Mr. President, I am Shortly after September 11, we start- paper reduced to legislation they happy to be able to have some time to ed out with meetings with Chairman rammed through our Finance Com- comment on the fact the Senate is not Greenspan and other economic policy- mittee on a party line vote. That bill bringing up the stimulus package. It is makers. For the most part, they were dead ended in the Senate. The reason is to my chagrin, after all the hard work called by the good chairman of the the bill was designed for partisan point Senator BAUCUS and I have put into Senate Finance Committee, Senator making. Its partisan design was its these negotiations. Albeit what we BAUCUS. In that period, right after Sep- weakness in an institution like the have in front of us is not a product of tember 11, the President took first Senate where one only gets things done a conference committee, it is still a steps and took the risk by committing on a bipartisan basis. That design guar- White House bipartisan compromise, a to a stimulus package, fully aware we anteed its failure. White House Centrist compromise, that might be going in the budget ‘‘red’’ if We could have ended there, but the would get a majority vote of the Sen- we did. President forced us back into action. ate if we had actually had an oppor- We should not discount this leader- Frankly, the House also yielded on a tunity to vote on it. ship by the President. Certainly it took very bad bill they first passed. In normal circumstances, I would not courage, and it was the right thing to The result was a quasi-conference en- be one to say we ought to pass a House do. Chairman Greenspan also took the vironment to work out differences. By bill. These are, however, not normal lead and gave the ‘‘Greenspan green virtue of this quasi-conference, my times and this is not a normal process. light’’ to pursue a stimulus package. It friends JAY ROCKEFELLER and MAX Some will say this is a House product seemed everyone realized our responsi- BAUCUS, our chairman, and I spent that needs to be amended and debated. bility was to heed the President’s di- many long hours debating the merits of That assertion, while technically accu- rective and Greenspan’s advice. Both of economic stimulus and aid to dis- rate, does not capture the essence of these men said Congress should address located workers. In many ways, the our situation today or right now that the economic slowdown. They told us discussions were vigorous exchanges of we are in a war on terrorism. the slowdown started over 1 year ago. views with our House colleagues. A lot The House bill is really the product Subsequently, the National Board of of that discussion was healthy, and of an agreement between the White Economic Research told us the econ- some of it helped move the process House and Senate Centrists so I am omy might have recovered but for the along. going to call the House bill what it September 11 attack. Little real progress was made. Once really is. It is a White House Centrist The President took the lead in meet- again, the President intervened and en- agreement, if you are looking for a bi- ing needs of dislocated workers. He dorsed the Senate Centrist position. partisan, bicameral product the Presi- proposed extension of unemployment Eventually, the House leadership came dent will sign. The President said he insurance benefits. He also proposed toward the Centrist position because would sign this. This agreement is the providing health care benefits through they wanted to find a way to get a bill only game in town. the National Emergency Grants. through the Senate, and that can only To anyone opposing this agreement, In addition, the President proposed, be done if it is done on a bipartisan including the Democrat leadership, I as a concession to the other party, a basis. Even with movement to the Cen- ask them to show me where they are new round of rebate collection to those trist position, the quasi-conference was being bipartisan. All I have seen from who do not pay income tax. at an impasse. Senator DASCHLE’s edict the leadership throughout this process Was there any reciprocation, any about 3 weeks ago that one-third of his is an iron fist cloaked in a velvet glove. movement from the Democratic leader- caucus could veto a stimulus plan came Today, we did witness, with the ob- ship? No. into clear focus. The sentiments of the jection to consideration of the stim- President Bush, much to the con- House or White House, let alone the ulus package, the iron fist clothed in sternation of many in the Republican sentiments of Joe Six-pack out there

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00116 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S13889 working every day to pay taxes, were there has been. Common sense says dent has expressed that polling data, less important than the opinion of a those who want a deal will show move- political consultants, and union offi- minority of the Democratic Senators, ment. By the same token, those who do cials had a big impact on the Senate which would be as few as 18. The failure not want a deal will not move. Democratic leadership strategy. to obtain a super-majority in the Start with the President. As I said, I ask unanimous consent to have Democratic caucus then imperiled this he made several key moves. He put the printed in the RECORD an editorial Centrist package, this Centrist bipar- dollars on the table, knowing it would from the Wall Street Journal that tisan package. complicate the fiscal year 2002 budget. states in depth what the consultants In the end, the impasse came not He took capital gains off the table. He say. from tax cuts. Republicans moved far put the payroll tax rebates on the There being no objection, the mate- off their priorities so that tax cuts table. He put the unemployment insur- rial was ordered to be printed in the were not the deal breaker. The impasse ance and health care benefits on the RECORD, as follows: was not over unemployment benefits. table. Finally, he endorsed even a plan [From the Wall Street Journal] Republicans had largely moved to the that went much further in the case of Democratic position. The impasse was PRESIDENT DASCHLE health care benefits, from $3 billion up One of the more amusing Washington not over the amount of the health care to $19 billion. That is in the White benefit package. Again, though the themes of late has been the alleged revival of House-Centrist agreement. the Imperial Presidency, with George W. benefit came in the form of a tax cred- When you look at the record, it is Bush said to be wielding vast, unprecedented it, Republicans moved toward a Demo- clear to me that the President of the powers. Too bad no one seems to have let cratic position on the costs of health United States wanted a deal, an eco- Senate Majority Leader Tom Daschle in on care benefits. nomic security package for dislocated this secret. Bizarre as it may seem, the whole workers and to help create jobs for Because from where we sit Mr. Daschle is agreement broke down over some ideo- those who do not have jobs. the politician wielding by far the most Belt- logical position on the eligibility of At the House of Representatives, I way clout, and in spectacularly partisan people for health insurance for the un- fashion. The South Dakotan’s political strat- agree that the first bill, as I said be- egy is obvious if cynical: He’s wrapping his employed through just COBRA. The fore, from that body was too heavy on impasse came down not over whether arms tight around a popular President on the corporate alternative minimum the war and foreign policy, but on the do- to help these workers. The White tax. But the chairman of the Ways and mestic front he’s conducting his own guer- House Centrist agreement covered Means Committee made many gestures rilla war against Mr. Bush, blocking the these workers with a tax credit. The to the other side. For instance, he did President’s agenda at every turn. And so far Senate Democratic bill covers these not pick and choose among extenders. he’s getting away with it. workers with a new entitlement. Basi- He included the payroll tax rebate that Mr. Bush has asked Congress to pass three main items before it adjourns for the year: cally, a super-majority of Democrats many of his Members in the other body would not agree to let laid-off workers Trade promotion authority, and energy and opposed. The chairman of the Ways and economic stimulus bills. Mr. Daschle has so have the choice of where they wanted Means Committee increased the re- to get their health care benefits. But far refused to negotiate on any of them, and sources for unemployment compensa- on two he won’t even allow votes. Instead he they could still get their health care tion and health care benefits. If you is moving ahead with a farm bill (see below) benefits with the same tax credit. doubt me on the seriousness of that the White House opposes, and a railroad re- The bottom line is the White House- tirement bill that is vital to no one but the Centrist agreement does not meet the movement, ask many in my caucus their opinion of those proposals. If you AFL–CIO. two-thirds litmus test set for the Just yesterday Mr. Daschle announced Democratic caucus by the leader. look at the record, the House Repub- that ‘‘I don’t know that we’ll have the oppor- One has to wonder, why leave all of licans moved and ultimately ended up tunity’’ to call up an energy bill until next these good things in the White House- as part of the White House-Centrist year. One might think that after September Centrist agreement on the Senate cut- agreement. 11 U.S. energy production would be a war pri- ting room floor, as just happened about Senate Republicans had a caucus po- ority. In September alone the U.S. imported sition very close to the President’s 1.2 million barrels of oil a day from Iraq, an hour ago? We have before the Sen- which we soon may be fighting, the highest ate revolutionary social policies. For plan. Like the President, Senate Re- publicans, especially our leader, Sen- rate since just before Saddam Hussein in- the first time, Members have sign-able vaded Kuwait in 1990. legislation that guarantees health care ator LOTT, constantly worked to try to But Mr. Daschle is blocking a vote pre- benefits for laid-off workers—the big- get a deal. As the President moved, so cisely because he knows Alaskan oil drilling gest change in policy for dislocated did the Senate Republican caucus posi- has the votes to pass; earlier this autumn he workers since unemployment insurance tion move. That is in the Record. pulled the bill from Senator Jeff Bingaman’s was passed in the 1930s. That brings us to the last and ulti- Energy Committee when he saw it had the We have, in the bill that was objected mate critical player. Obviously, that is votes. So much for the new spirit of Beltway to, extended unemployment benefits as the Senate Democratic leadership. I cooperation. We’re not so naive as to think that war we have done several times in the last ask, where has the Senate Democratic leadership really moved? At every will, or should, end partisan disagreement. 50 years. We have a robust stimulus But what’s striking now is that Mr. Daschle package with 30 percent bonus depre- stage of the process, whether it is the is letting his liberal Old Bulls break even the ciation. We have an extension of expir- Finance Committee action, whether agreements they’ve already made with the ing tax provisions for 2 years. We have the action on the floor, or even the White House. Mr. Bush shook hands weeks the victims of terrorism tax relief and quasi-conference, ultimately we find ago on an Oval Office education deal with tax incentives to build New York City this leadership position always saying Teddy Kennedy, but now we hear that Mr. once again. ‘‘no’’. Everyone else was saying ‘‘yes’’. Kennedy wants even more spending before All of these are good provisions Now there is a good game being he’ll sign on. Mr. Daschle is letting Ted have talked by the other side. They say they his way. which enjoy broad bipartisan support. The same goes for the $686 billion annual They are the foundation of the White want an agreement. That is the elegant spending limit that Democrats struck with House-Centrist agreement. Yet because velvet glove they are noted for, but Mr. Bush after September 11. That’s a 7% in- of this ideological fixation, all of these where is the action? The action today crease from a year earlier (since padded by a good things now go by the wayside was ‘‘no’’ on unanimous consent re- $40 billion bipartisan addition), and Demo- until we return 1 month from now on quest. But look at the whole last 3 crats made a public fanfare that Mr. Bush January 23. While we are going to be months on this issue. Where have they had endorsed this for fear some Republicans enjoying Christmas, these dislocated moved? If you want an agreement, you might use it against them in next year’s workers who could have been guaran- have to see movement. There has been elections. But now Mr. Daschle is using the issue against Mr. Bush, refusing to even dis- teed health benefits and further unem- none. cuss an economic stimulus bill unless West ployment compensation are going to go One has to ask, with so many good Virginia Democrat Bob Byrd gets his demand away empty handed. provisions in this White House-Centrist for another $15 billion in domestic spending. I will look at each key player in the agreement, why should the Democratic Mr. Byrd, a former majority leader who process and see how much movement leadership want to kill it? The Presi- thinks of Mr. Daschle as his junior partner,

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00117 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S13890 CONGRESSIONAL RECORD — SENATE December 20, 2001 may even attach his wish list to the Defense ing more than $375,000 a year) in order to The theory from the articles is the spending bill. That would force Mr. Bush to fund the rebuilding and security and to make political strategy of the Democratic either veto and forfeit much-needed money sure we do not keep borrowing from the So- leadership is to covertly thwart any for defense, or sign it and swallow Mr. Byrd’s cial Security trust fund. Two-thirds of the megapork for Amtrak and Alaskan airport electorate favors this proposal, but most im- stimulus and aid to dislocated workers. subsidies. portant, more than half (51 percent) strongly It is good to keep these issues as All of this adds to the suspicion that Mr. favor it—the highest for any Democratic pro- ‘‘issues’’ to beat up on the President Daschle is only too happy to see no stimulus posal. One person noted that they used to next year and on Republicans, particu- bill at all. He knows the party holding the laugh about the ‘‘Social Security lock box,’’ larly if the economy does not recover. White House usually gets most of the blame ‘‘Well, there it goes. . . . Well, that’s all our If the economy does recover, what is for a bad economy, so his Democrats can pad money.’’ That sentiment reverberated across lost except stimulative tax relief and their Senate majority next year by blaming the groups: ‘‘It’s not their money anyhow’’; some worker aid? Better to keep the Republicans. This is the same strategy that ‘‘that’s what we paid into for our own secu- former Democratic leader George Mitchell rity, [and] that’s not something they should issue than to act now is the way it pursued in blocking a tax cut during the say, well, we got this money here, we can use turns out. early 1990s and then blaming George H.W. it however we want.’’ And some said, ‘‘I So goes the theory, then. Apply the Bush for the recession. Mr. Mitchell’s mean don’t delay, just eliminate that tax cut iron fist, but do it covertly, using the conigliere at the time? Tom Daschle. for these people.’’ velvet glove so as to escape responsi- It is certainly true that Republicans have Cobra coverage health care for the newly bility for your actions. often helped Mr. Daschle’s guerrilla cam- unemployed stands out, on its own, as a very I hope this is a cynical political the- important thing to do at this moment. Peo- paign. Alaska’s Ted Stevens is Bob Byrd’s ory, but that it is not true. If it is, and bosom spending buddy; he’s pounded White ple understand the rising cost of health care House budget director Mitch Daniels for dar- and how expensive coverage can be for any- only the Democratic leadership really ing to speak the truth about his pork. And one. knows if it is true. If it is true, it is sad GPO leader Trent Lott contributed to the It is important to underscore that three- and it is disappointing. If true, it is airline-security rout by letting his Members quarters of the public favors a Democratic politics at its worst. I only hope the ar- run for cover. proposal for business tax incentives to en- ticles are not true. There is no better The issue now is whether Mr. Bush will courage investment in new plants and equip- authority on this subject than the ment. The public wants tax breaks, including continue to let himself get pushed around. former distinguished majority leader, Mr. Daschle is behaving badly because he’s for business, if the provision is linked to in- assumed the President won’t challenge him vestment, not simply consumption. People Senator George Mitchell, he said it for fear of losing bipartisan support on the are looking for initiatives, consistent with best in an interview with John war. But this makes no political sense: As this new period. One of the participants ob- McLaughlin. Senator Mitchell said: long as Mr. Bush’s war management is pop- served, ‘‘The tax cut is tied to investment to Good policy results in good politics. ular, Mr. Daschle isn’t about to challenge encourage them to move forward, not just a Not the other way around. You don’t him on foreign affairs. blanket.’’ get good policy because of good politics Unemployment benefits for the newly un- The greater risk to Mr. Bush’s popularity but good politics because of good pol- and success isn’t from clashing with the employed are immensely popular. When of- Daschle Democrats over tax cuts or oil drill- fered by the Republicans and targeted at icy. ing. It’s from giving the impression that on those who have lost their jobs after Sep- I hope the Senate Democratic leader- everything about the war, Tom Daschle tember 11th, 85 percent favor the idea, in- ship heeds Senator Mitchell’s advice might as well be President. cluding 53 percent who strongly favor it. Pre- here and doesn’t get it backwards. I Mr. GRASSLEY. Mr. President, I sented with an expansive Democratic pro- hope the press accounts and rumors posal—extending benefits to 26 weeks, while around the Hill are not true. But we also ask unanimous consent to have raising weekly benefits and covering part- printed in the RECORD a portion of a time employees—more than two-thirds sup- will have to wait and find out. Regret- November 13 memo from Democracy port it, but less enthusiastically. tably we are not taking up this con- Corps regarding the economic stimulus In the focus groups, many participants sensus economic stimulus bill. That proposals. worried that such an expansive proposal says to the workers dislocated because There being no objection, the mate- might re-open the old welfare system. That of September 11, at a time when we are rial was ordered to be printed in the is why the unemployment proposals should in a war environment, that they can be part of a broad Democratic economic not have anything for Christmas. They RECORD, as follows: package. POLITICS AFTER THE ATTACK—A REPORT ON On taxes, voters offer a fairly consistent do not have the 13 more weeks of un- DEMOCRACY CORPS’ NEW NATIONAL SURVEY posture, whether offered by Democrats or employment compensation; they do not AND FOCUS GROUPS Republicans. They support business tax cuts, have the additional health insurance. * * * * * even a capital gains tax cut, when it includes To reiterate, as most of you know, the wording, ‘‘in order to encourage invest- THE ECONOMIC STIMULUS Senator DASCHLE has radically modi- ment.’’ Voters seem to support an acceler- Voters do not currently bring a strong par- fied the economic stimulus proposal ated schedule for tax cuts aimed at the mid- that the Democrats first tried to pass tisan filter to the various economic pro- dle class—such as the marriage penalty. But posals being considered. Nonetheless, a ma- there is little enthusiasm for the tax rebate in the Senate. jority support every Democratic proposal; in whether proposed by Democrats or by Repub- Surprisingly, it looks a lot like our fact, two-thirds favor every Democratic pro- licans—just 56 percent. The weak reaction to White House-Centrist stimulus pack- posal but one (the tax rebate). Overall, the the rebate reflects our earlier observations— age. It has adopted many measures ini- Democratic proposal does better than the a citizenry focused on addressing the com- tially promoted by Republicans. Per- Republican—particularly those features that munity’s crisis and long-term needs, rather haps some good has come from all have led the public debate, like the Alter- than simply throwing money at individuals these weeks of discussion. native Minimum Tax. to consume now. Across the Democratic and Republican Cuts in corporate tax rates, with no imme- I’d like to talk about some of the dif- packages, the strongest support is for unem- diate spur to investment, gets little support ferences between the White House-Cen- ployment benefits for the newly unemployed; (46 percent). Repeal of the Alternative Min- trist package and the altered Democrat delaying tax cuts for the wealthiest one per- imum Tax, providing $25 billion in tax cuts stimulus plan. cent in order to fund rebuilding and Social for large businesses wins the support of only I want to explain why I believe our Security; funding ready-to-go infrastructure 28 percent. When presented specifically with bipartisan package is better for Amer- to create jobs; accelerating already sched- tax cuts for IBM, GE and General Motors, ica. uled broad middle class tax cuts; Cobra voters are simply incredulous. Now the lead- Let’s start with the White House- health insurance for the newly unemployed; ing element of the House Republican pack- and tax incentives for business if clearly age, this is likely to shape public perceptions Centrist plan’s tremendous commit- linked to new investment. of the Republicans’ approach to the econ- ment to displaced workers. The public rallies to four elements of the omy. This may become one of the sub- Our unemployment insurance pro- Democratic plan. The starting point is the stantive elements in the public’s desire to posal represents an unprecedented immediate construction program, including balance the President’s direction. commitment to American workers. We airport improvements and school moderniza- Mr. GRASSLEY. I was not in on the would provide up to 13 weeks of addi- tion to create jobs. That has the broadest meetings with the Democratic consult- tional unemployment benefits to eligi- support (85 percent) and nearly the most in- tense—48 percent strongly supportive. ant, so I do not know if it is was true ble workers who exhaust their regular There is strong support for delaying the or not, but Members can read it and benefits between March 15, 2001 and De- tax cuts for the top one percent (those earn- make their own determination. cember 31, 2002.

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00118 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S13891 An estimated 3 million unemployed when President Bush first called on needs. This only makes sense. Locking workers would qualify for benefits Congress to pass a stimulus package, I people into COBRA, as the Democratic averaging $230 a week. These benefits have worked closely and seriously with leadership insists, forces people to stay would be 100 percent federally funded both Democrats and Republicans to with policies that may be too expensive at a cost of nearly $10 billion. come up with a meaningful, bipartisan for them to keep, even with a subsidy. Our proposal would also transfer an approach to helping people impacted Our goal was to give dislocated work- additional $9 billion to state unemploy- by the events of September 11. ers access to all the health insurance ment trust funds. Compared to where we started on the choices available to them in the pri- This transfer would provide the issue of health care, we have come a vate marketplace, and we’ve done that states with the flexibility to pay ad- very long way. Let me give you a little in a responsible way. ministrative costs, provide additional history first. This bill also includes a major, new benefits, and avoid raising their unem- When this debate began, our proposal insurance reforms to protect people ployment taxes during the current re- relied on the National Emergency who have had employer-sponsored cov- cession. Grant program to deliver health bene- erage and go out into the private mar- The United States enjoyed a growing fits to workers at a cost of about $3 bil- ket for the first time after being laid economy and declining unemployment lion. Over time, that number grew, and off. for much of the previous decade. But, I said publicly that we could double, or It makes the COBRA protections the economic slowdown that began last even triple, that number. available to people who have had only year—which was exacerbated by the I also invited the Democrats to mod- 12 months of employer-sponsored cov- terrorist acts on September 11—has re- ify the grant criteria to make the pro- erage, rather than 18 months, as under sulted in substantial layoffs. gram more responsive to the needs of current law. By doing this, we greatly The unemployment rate has risen workers without health insurance. expand the group of displaced workers from 4.0 percent in November 2000 to 5.7 They refused. But that didn’t stop us who cannot be turned down for cov- percent in November 2001. from staying at the negotiating table. erage or excluded because of a pre-ex- By historical standards, the current Next, we proposed giving workers a isting condition. unemployment rate is still substan- refundable, advanceable tax credit to- The new 12 month standard is espe- tially below the level at which Con- wards the purchase of health insurance cially important for people with chron- gress deemed it necessary to enact ex- equal to 50 percent of the policy’s cost. ic conditions who have difficulty ob- tended unemployment benefits. And when Democrats objected to taining affordable coverage. It is a Over the past 50 years, the federal that, claiming that the credit was too major step, and I’m surprised that the government has provided temporary small and that sicker people would Democratic leadership doesn’t want to extended unemployment benefits only have trouble buying policies in the in- take us up on these sweeping new re- six other times. The average unemploy- dividual market, we came back with forms. ment rate during those times was 7.3 yet another offer, which is reflected in Let me turn to the mechanics of tax percent. Based on this historical record, the this bill. credit proposal. It is easier to imple- President originally suggested that ex- The new proposal, endorsed by the ment than the direct subsidy approach tended unemployment benefits should White House, the House of Representa- of the Democratic leadership. While their proposal requires em- be limited to those states that have a tives, and the centrists in this body, ployers to shoulder the burdens, our disaster declaration in effect as a re- takes a three-pronged approach to get- proposal relies on existing state unem- sult of September 11, or have a 30 per- ting health insurance assistance to ployment insurance systems. So under cent increase in their unemployment people in need. It goes farther and wider than any this bill, workers will be able to access rate. However, a number of our colleagues proposal on the table to date, and gets the credit, and begin applying it to on both sides of the aisle insisted that more help, to more people, more quick- their health insurance premiums in a we provide immediate assistance to ly than any other proposal to date. timely way. Here’s how it works: every state regardless of their unem- What’s more, it represents a giant Newly dislocated workers will re- ployment rate. We have agreed to do leap in spending on health care. It in- ceive vouchers from their state unem- exactly that in our proposal. cludes over six times as much money ployment offices or ‘‘one stop’’ centers Unfortunately, some on the other for temporary health insurance assist- when they apply for unemployment in- side of the aisle continue to insist this ance as our original Republican pro- surance. Workers can then take those is not enough. They insist we should go posals. vouchers and submit them, along with further by requiring every state to pro- And still the Democratic leadership their contribution to the premium, to vide specific benefits and establish spe- tells us we are not negotiating seri- their employer or insurer. Afterwards, cific eligibility criteria as a condition ously. insurers would submit the vouchers to of receiving federal assistance. We Mr. President, the White House/cen- the Treasury Department for reim- could not agree to these demands. trist proposal spends approximately $19 bursement. The Federal Government has always billion on temporary health insurance This approach works because it relies left decisions about benefit levels and help in 2002. And it does it the right on existing systems to deliver the new eligibility criteria to the States. way, by using existing programs along benefits, and as a result delivers those The changes sought by those on the with new ones designed to get people benefits in a fast and reliable way. other side of the aisle would destroy they help they need quickly. I ask my colleagues: why would any- this historic relationship and under- Now let me take a minute to describe one insist on a mechanism that just mine the flexibility needed by the our three-pronged approach. won’t work as well? I don’t understand states to respond to their unique cir- First, the White House/centrist pro- it. cumstances. posal provides a refundable, The second prong of our proposal is I would now like to discuss our bipar- advanceable tax credit to all displaced $4 billion in enhanced National Emer- tisan plan’s commitment to providing workers eligible for unemployment In- gency Grants for the States, which can health care for dislocated workers. surance, not just those eligible for be used to help all workers—not just Now, Democrats have been saying COBRA. The value of the credit is 60 those eligible for the tax credit—pay since October that Republicans don’t percent of the premium, up from 50 per- for health insurance. States have flexi- care about helping workers with health cent in our original proposal. The cred- bility under our approach, and can use insurance. Senator DASCHLE himself it has no cap, and is available to indi- these grants to enroll their workers in said yesterday that his Republican col- viduals for a total of 12 months be- high risk pools or other state-run leagues, and I quote, ‘‘so far have re- tween 2001 and 2003. plans, or even in Medicaid. fused to come to the table and nego- Individuals can stay in their em- To address concerns raised by Demo- tiate seriously.’’ ployer COBRA coverage, or they can cratic colleagues, our enhanced Na- Mr. President, nothing could be far- choose policies in the individual mar- tional Emergency Grant program re- ther from the truth. Since October ket that may better fit their family’s quires all States to spend at least 30

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00119 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S13892 CONGRESSIONAL RECORD — SENATE December 20, 2001 percent of their grant funds on tem- The reduction of the 27 percent rate (See Exhibit 2.) porary health insurance assistance. In will benefit singles with taxable in- Mr. GRASSLEY. The Treasury De- addition, we’ve included protection for come over $27,000, heads of household partment has estimated that White states: a minimum grant level of $5 with taxable income over $36,250, and House-Centrist plan’s acceleration of million for any state that meets the married couples with taxable income the 27 percent rate reduction will yield grant criteria. over $45,000. $17.9 billion of tax relief in 2002 for over Finally, the third prong of the pro- These are not wealthy individuals. 36 million taxpayers, or one-third of all posal responds to Democratic requests These are middle class working Ameri- income tax payers. by including $4.3 billion for a one-time cans. Business owners and entrepreneurs temporary State health care assistance I have a chart which shows the me- account for 10 million, or 30 percent, of payment to the States to help bolster dian income of a four person family for those benefitting from the rate reduc- their Medicaid programs. every State in the Nation. Median in- tion. As we know, the Medicaid program is come is the amount of income right in When you refuse to accelerate the an important safety net program for the middle, with half the incomes rate cuts you harm farmers and small low-income children and families and above it and half below it. business persons. This is because most disabled individuals. Medicaid is a This chart shows that the average small business owners and farmers op- joint Federal and State program and median income for a four person family erate their businesses as sole propri- accounts for a large part of State budg- in the United States is $62,098. etorships, partnerships or ‘‘Sub S’’ cor- ets. Now, reduction of the 27 percent rate porations. So, in this time of budget constraints will benefit married couples with tax- The income of these types of entities due to the recession, States are strug- able income over $45,000. So it will ben- is reported directly on the individual gling to make ends meet. efit working people who earn well tax returns of the owners. Therefore, a As a result of the unique and extraor- below the national median income rate reduction for individuals reduces dinary economic situation we now face, level. taxes for farms and small businesses. a number of states are considering This chart also lists those states that That is why the additional rate re- scaling back Medicaid services, includ- have a family median income that is duction under the White House-Cen- ing my own state of Iowa. This provi- higher than the national average. And trist plan is so important. In 2002 sion provides a one-time, emergency look at where these people live. alone, it injects $17.9 billion of stim- cash injection that will help States Connecticut, New Jersey, Delaware, ulus into our ailing economy and small avoid Medicaid cutbacks. Michigan, Rhode Island, California, businesses. This feature was not part of our Washington State. These are the states So what would a small business do original plan, and I recognize that where a family of four will benefit the with these tax savings? Well, consid- many of my colleagues have concerns most from our proposed tax cut. ering that most of the recent job about it. In fact, I share their reserva- The Democrat’s revamped alter- growth has come from small busi- tions, and that is why I’m emphasizing native would impose an additional 4 nesses, I believe they would hire more that this is not simply a garden-vari- percent tax rate on these incomes over people and make more business invest- ety increase in Medicaid funding, but a the next 4 years. That should concern ments. temporary, emergency payment. representatives from those states. We know that 80 percent of the 11.1 The nation is calling for bipartisan For example, consider that an addi- million new jobs created between 1994 compromise, and in that spirit, we’ve tional 4 percent tax on New Jersey’s and 1998 were from businesses with less agreed to add this to our proposal. $78,000 median income results in more than 20 employees. Mr. President, we have made tremen- than $1,300 in additional taxes. And 80 percent of American busi- dous steps toward the Democratic posi- Michigan is the same: an additional nesses have fewer than 20 employees. tion in order to find bipartisan com- $900 of tax. Washington State is hit This is what I refer to as the ‘‘80–80 promise on health care. Those steps with nearly $800 in additional tax. Rule’’ for supporting rate reductions. These are significant numbers for a have not been reciprocated by the In addition, lowering taxes now working family with two children. Democratic leadership. would increase a business’ cash flow They would spend this money to meet Displaced workers deserve to be during the current economic slowdown. their families’ needs, which would treated with respect by this body, and The higher cash flow would increase stimulate the economy more than a I believe those workers have earned a the demand for investment and labor. bunch of liberal Democrat spending vote on this bill. But don’t just take my word for it. I would now like to discuss the indi- programs. Take it from an October 2000 report by Mr. President, I ask unanimous con- vidual income tax rate reductions in the National Bureau of Economic Re- sent that this chart be printed at the the White House-Centrist plan and the search, a very well-regarded non-par- conclusion of my remarks. resuscitated Daschle plan. The PRESIDING OFFICER. Without tisan organization, entitled ‘‘Personal The original House stimulus bill objection it is so ordered. Income Taxes and the Growth of Small would have accelerated the reduction (See Exhibit 1.) Firms.’’ of the 27 percent rate to 25 percent Mr. GRASSLEY. The more surprising This report reaches the unambiguous which is scheduled to go into effect in figures are shown in the next chart, conclusion that when a sole propri- 2007. The White House-Centrist pack- which shows States with median in- etor’s marginal tax rate goes up, the age has adopted this approach. come below the national average. rate of growth of his or her business Now, the revamped Democrat plan Recall that I said reducing the 27 per- enterprise goes down. would reduce the 27 percent rate to 26 cent rate to 25 percent will benefit Simply stated, high personal income percent in 2002, and would not reduce married couples with taxable income tax rates discourage the growth of the rate to 25 percent until 2006. Recall over $45,000. Now look at the median small businesses. And right now, that that the original Democrat plan did income distributions on this chart. is the last thing we need. not provide one red cent of rate relief There is not one State on here that That is why it is important to do rate for working Americans. has a median family income of less reductions the right way, and fully ac- Now think about this. The 1 percent than $45,000. celerate the 27% rate reduction. We are higher rate under the Democrat plan So you can see that our proposal will simply accelerating a decision this will operate as a 4 percent rate in- benefit everyone, not just an elite few, Senate made last summer. crease until the 27 percent rate is fi- from a few selected states. We should have confidence in our de- nally lowered to 25 percent 4 years Mr. President, I ask unanimous con- cision. We know that tax cuts are stim- from now. That makes a huge dif- sent that my second chart be printed in ulative. ference to Americans who are strug- the RECORD at the conclusion of my re- When working Americans have more gling to make ends meet. Let’s take a marks. of their own income, they feel more fi- look at who will benefit from our The PRESIDING OFFICER. Without nancially secure and are more com- plan’s rate reduction. objection it is so ordered. fortable with spending.

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00120 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S13893 A full reduction of the 27 percent rate Median income for 4-person families, by state, SECTION 1. EXTENSION OF UNEMPLOYMENT AS- to 25 percent is much more stimulative 2001—Continued SISTANCE. than a reduction that is deferred to Washington ...... 64,828 Notwithstanding section 410(a) of the Rob- District of Columbia ...... 64,480 ert T. Stafford Disaster Relief and Emer- 2007, as called for under the Democrat gency Assistance Act (42 U.S.C. 5177(a)), in plan. EXHIBIT 2 the case of any individual eligible to receive In closing, let me say who really New York ...... 61,864 unemployment assistance under section loses when the Senate loses its right to Pennsylvania ...... 61,648 410(a) of that Act as a result of the terrorist vote on the White House-Centrist bill. Nevada ...... 61,579 attacks of September 11, 2001, the President It is our displaced workers, it is our Indiana ...... 60,585 shall make such assistance available for 52 Iowa ...... 60,125 weeks after the major disaster is declared. fellow Americans who still have a job Georgia ...... 59,835 and the security of our jobs base; and it Vermont ...... 59,750 f is the soundness of our nation’s econ- Maine ...... 59,567 TERRORIST VICTIMS’ COURTROOM omy. Utah ...... 59,272 ACCESS ACT The Senate Democrat Leadership will Kansas ...... 59,214 Mr. REID. Mr. President, I ask unan- not allow an up or down vote on our bi- Missouri ...... 58,674 imous consent the Judiciary Com- partisan White House-Centrist stim- Ohio ...... 58,222 North Carolina ...... 58,096 mittee be discharged of further consid- ulus package. Why? Because it would South Carolina ...... 57,954 eration of S. 1858, and the Senate pro- pass. We have a majority of Senators Nebraska ...... 57,659 ceed to its immediate consideration. who support this package. Wyoming ...... 57,588 The PRESIDING OFFICER. Without Instead, the Senate Democrat Lead- Florida ...... 57,540 objection, it is so ordered. ership has created a ‘‘make-believe Oregon ...... 55,812 The clerk will report the bill by title. boogey-man’’ over the issue of how Texas ...... 55,172 The assistant legislative clerk read health care benefits should be delivered Arizona ...... 54,913 as follows: to unemployed. But the majority of Alabama ...... 54,255 Oklahoma ...... 54,106 this Senate does not agree with them. A bill (S. 1858) to permit closed circuit South Dakota ...... 54,090 televising of the criminal trial of Zacarias But voting on this issue and helping Kentucky ...... 54,028 Moussaoui for the victims of September 11th. the economy recover is not really what Tennessee ...... 53,835 is on their minds. It is not their polit- North Dakota ...... 52,802 There being no objection, the Senate ical objective. Montana ...... 52,765 proceeded to consider the bill. The Senate Democratic leadership is Louisiana ...... 51,191 AMENDMENT NO. 2691 playing political brinkmanship, hoping Mississippi ...... 49,606 Mr. REID. I ask consent the Senate Idaho ...... 49,387 now proceed to the consideration of the that the American public buys into Arkansas ...... 48,318 their excuses for inaction. West Virginia ...... 46,798 Allen amendment that is at the desk, The Senate Democratic Leadership New Mexico ...... 46,534 the amendment be agreed to, the bill be read the third time, passed, the mo- keeps their fingers crossed, hoping that Source: Census (inflated from 1999 date by GDP our economic difficulties will last until deflator). tion to reconsider be laid upon the next fall so they can blame it on the The PRESIDING OFFICER. The Sen- table, and any statements be printed in President in their campaign ads. ator from Nevada. the RECORD. The PRESIDING OFFICER. The But the blame doesn’t go to the f President. He has bent over backwards clerk will report the amendment. to accommodate their demands. And it TO EXTEND THE AVAILABILITY OF The assistant legislative clerk read still is not enough. The Senate Demo- UNEMPLOYMENT ASSISTANCE IN as follows: THE CASE OF THE TERRORIST cratic leadership would rather move The Senator from Nevada [Mr. REID], for the goal post than agree to a solution. ATTACKS ON SEPTEMBER 11 Mr. ALLEN, proposes an amendment num- This is not what we were elected by Mr. REID. Mr. President, I ask unan- bered 2691. to do. This is not in service of our imous consent the Senate proceed to The amendment is as follows: country. It is in no one’s best interest. the immediate consideration of Cal- (Purpose: To clarify the requirements of the We are at war. Our economy is in cri- endar No. 274, S. 1622. trial court) sis. And the only impediment to recov- The PRESIDING OFFICER. The On page 2, line 5, strike ‘‘including’’ and ery is the refusal of the Senate Demo- clerk will report the bill by title. insert ‘‘in’’. cratic leadership to allow this Senate The assistant legislative clerk read On page 2, line 6, after ‘‘San Francisco,’’ to pass this economic stimulus pack- as follows: insert: ‘‘and such other locations the trial court determines are reasonably necessary,’’. age. A majority of our members will A bill (S. 1622) to extend the period of vote for this bill. availability of unemployment assistance The PRESIDING OFFICER. Is there I hope the Senate leadership hears under the Robert T. Stafford Disaster Relief objection to the various requests of the the pleas of the American people and and Emergency Assistance Act in the case of Senator from Nevada? stops blocking this bill through proce- victims of the terrorist attacks of September Without objection, it is so ordered. dural technicalities. The Senate should 11, 2001. The amendment (No. 2691) was agreed be allowed to do its job. There being no objection, the Senate to. proceeded to consider the bill. EXHIBIT 1 The bill (S. 1858), as amended, was Mr. REID. Mr. President, I alert the read the third time and passed, as fol- Median income for 4-person families, by state, Senator from New York and the Sen- lows: 2001 ator from Virginia; we can get this S. 1858 United States ...... $62,098 unanimous consent if they save their Be it enacted by the Senate and House of Rep- Connecticut ...... 78,170 speeches for much later. New Jersey ...... 78,088 resentatives of the United States of America in Maryland ...... 77,447 I ask unanimous consent the bill be Congress assembled, Massachusetts ...... 74,220 read the third time, passed, the motion SECTION 1. SHORT TITLE. Alaska ...... 72,775 to reconsider be laid upon the table, This Act may be cited as the ‘‘Terrorist Minnesota ...... 69.031 and any statements relating thereto be Victims’ Courtroom Access Act’’. Hawaii ...... 68,746 printed in the RECORD. SEC. 2. TELEVISING OF THE TRIAL OF ZACARIAS Illinois ...... 68,698 The PRESIDING OFFICER. Without MOUSSAOUI FOR THE VICTIMS OF New Hampshire ...... 68,211 objection, it is so ordered. SEPTEMBER 11TH. Delaware ...... 67,899 The bill (S. 1622) was read the third (a) IN GENERAL.—Notwithstanding any pro- Michigan ...... 67,778 time and passed, as follows: vision of the Federal Rules of Criminal Pro- Rhode Island ...... 66,895 cedure to the contrary, in order to permit Virginia ...... 66,624 S. 1622 victims of crimes associated with the ter- Wisconsin ...... 65,675 Be it enacted by the Senate and House of Rep- rorist acts of September 11, 2001 to watch California ...... 65,327 resentatives of the United States of America in criminal trial proceedings in the criminal Colorado ...... 65,079 Congress assembled, case against Zacarias Moussaoui, the trial

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00121 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S13894 CONGRESSIONAL RECORD — SENATE December 20, 2001 court in that case shall order closed circuit homeland defense. We have learned In this bill, our foreign assistance to televising of the proceedings to convenient that airplanes can be bombs and that the Middle East virtually ignores the locations, in Northern Virginia, Los Angeles, letters in the mail can be lethal. We spiraling violence in the region. This New York City, Boston, Newark, and San have learned that we must change our bill provides $5.1 billion dollars in for- Francisco, and such other locations the trial eign assistance to the Middle East, pri- court determines are reasonably necessary, definition of defense to encompass de- for viewing by those victims the court deter- fending our domestic infrastructure as marily Israel and Egypt, a level almost mines have a compelling interest in doing so well as defending against ballistic mis- identical to last year’s funding. It is as and are otherwise unable to do so by reason sile threats. if nothing has changed. There are no of inconvenience and expense of traveling to These changes reflect the realization strings on the money. There is no re- the location of the trial. that the September 11 terrorist attacks quirement that the bloodshed abate be- (b) PROCEDURES.—Except as provided in on U.S. soil may not be an isolated in- fore the funding is released. There is no subsection (a), the terms and restrictions of cident. At this moment, there may be motivation for Egypt to step up its ef- section 235 of the Antiterrorism and Effec- people planning other terrorist acts fort to mediate between the sides, and tive Death Penalty Act of 1996 (42 U.S.C. there is no incentive whatsoever for 10608) shall apply to the televising of court against our homeland. We have already proceedings under this section. experienced three terrorism alerts in Israel and the Palestinians to make meaningful progress toward a peaceful f the U.S. since September 11. Almost daily, we hear grim predictions of what settlement of their differences. FOREIGN OPERATIONS EXPORT FI- the future may bring. We are living in In short, we are doing little more NANCING, AND RELATED PRO- an age of global instability, than offering a tacit acknowledgment GRAMS APPROPRIATIONS ACT, disenfranchised and desperate peoples, that the United States is powerless to 2002—CONFERENCE REPORT and widespread proliferation of weap- stop the bloodshed. We are sending the Mr. REID. Mr. President, I submit a ons of mass destruction. The volatility wrong signal to the Middle East. By not using our foreign assistance dollars report of the committee of conference of the current world situation is with- as an instrument to effect change in on the bill (H.R. 2506) and ask for its out precedent. the Mideast, we are inadvertently help- immediate consideration. And yet, in many ways, the major in- ing to fuel the continued cycle of vio- The PRESIDING OFFICER. The strument of our foreign policy—the lence. And what has this hands-off pol- clerk will report. Foreign Operations Appropriations icy produced? Empty promises, esca- The legislative clerk read as follows: Act—reflects a distressing attitude of lating violence, and the prospect of war business-as-ususal. I do not fault the The committee of conference on the dis- instead of peace between Israel and the agreeing votes of the two Houses on the authors of this bill. Senator LEAHY and Palestinians. amendment of the Senate to the bill (H.R. Senator MCCONNELL have done an ex- 2506), making appropriations for foreign op- Now what? Where does the so-called cellent job in balancing the priorities peace process go from here? Can we erations, export financing, and related pro- of the Administration with the con- grams for the fiscal year ending September really expect the Israelis to exercise 30, 2002, and for other purposes, having met, cerns of Congress and the needs of our restraint following the most recent es- have agreed that the House recede from its allies throughout the world. They have calation of violence against their citi- disagreement to the amendment of the Sen- done so with care and skill, and they zens? Is there any point in urging ate, and agree to the same with an amend- are to be commended for their work. Yassar Arafat to seize and punish the ment, and the Senate agree to the same, No, the fault, I believe, lies with our terrorists within his control when he is signed by a majority of the conferees on the inability as a nation to relinquish long obviously unable to live up to his part of both Houses. held conventional wisdom about for- promises? Is there any hope that the The PRESIDING OFFICER. The Sen- eign aid and recognize that the chang- Israelis and Palestinians will be able to ate will proceed to the consideration of ing global environment requires a re- re-engage in meaningful discussions in the conference report. vamping of our foreign policy. We must the foreseeable future? (The conference report can be found move away from using dollars to sym- In the current poisonous environ- in the House proceedings of December bolize the strength of our relations ment, neither side has any incentive to 19, 2001.) with other countries, and instead focus resume peace talks. To give his expres- The PRESIDING OFFICER. The Sen- our energies—and our resources on pro- sions of dismay any credibility, Mr. ator from West Virginia. moting a new understanding of foreign Arafat will have to conduct a swift and Mr. BYRD. Mr. President, with policy that complements and enhances sweeping crackdown on the leaders of American troops on the ground in Af- our global war on terrorism. the Palestinian terrorist cells—some- ghanistan, with an uneasy coalition of Nowhere is this more true than in the thing he has never been able to accom- nations confronting an unprecedented Middle East, where renewed violence plish in the past. And even if Mr. war on terrorism, and with the possi- and antipathy have brought Israel and Arafat could deliver on his promises, it bility of all-out war looming over the the Palestinian Authority to the brink will take masterful leadership on the Israelis and the Palestinians, the For- of open warfare. Since September 29, part of Israeli Prime Minister Ariel eign Operations Appropriations con- 2000, the Israeli-Palestinian conflict, Sharon to restrain his military options ference report before us today comes at fueled by generations of hatred, has and to place Israel’s settlements in dis- a pivotal moment in our nation’s his- claimed nearly 1,000 lives. For the past puted areas on the negotiating table— tory. Given the volatility of the situa- 15 months, the unending cycle of vio- two difficult but necessary pre- tion in the Middle East in the midst of lence has pitted the home-made bombs requisites for peace. America’s war on terrorism, it is vital and deadly suicide missions of the Pal- The Israelis and the Palestinians, that Congress and the Administration estinians against the heavy armor and riven by generations of hatred, cannot present a united foreign policy front to missile attacks of the Israelis. Many, hope to accomplish these goals on their the rest of the world. For that reason, perhaps most, of the victims have been own. It is time for Egypt—with the as- I will vote for the FY 2002 Foreign Op- young people barely on the cusp of sistance of Saudi Arabia and Jordan— erations conference report, I do so re- adulthood. The sad fact is that the to exercise its considerable influence in luctantly and with reservation—and I next generation of leaders of the the region and place long term security do not often vote for Foreign Oper- Israelis and the Palestinians are being interests over short term internal po- ations appropriations bills. sacrificed to the blood feud of their el- litical costs. Such leadership will not I believe it is time—I believe it is ders. be easy. President Mubarak will have past time—to rethink our foreign aid The United States, like the rest of to make hard choices and steel himself policy and how relates to our national the world, has looked on this ceaseless and his government against the pre- security priorities. September 11 was a carnage in horror. We have expressed dictable political backlash from the wake up call on many fronts. As a re- dismay, regret, sorrow, and anger. We more radical elements of his own coun- sult of the attack on America, we have have wrung our hands in despair. We try. But President Mubarak’s leader- made sweeping changes in our concept have condemned the violence in the ship is necessary to temper the emo- of national security. We have learned strongest terms. But we have not suit- tions of his fellow members of the Arab that national security also means ed our words to any meaningful action. League.

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00122 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S13895 The United States has a similarly the dispute between the Israelis and vided chemical weapons to Syria. It difficult task before it. Despite our the Palestinians. It is remarkable in provided them to Iran. clear alliance with Israel, the U.S. its fairness and even-handedness in Could these weapons be used against must regain the role of honest broker. holding both sides accountable for our personnel and our allies in the We must stop rewarding the status quo their transgressions. Our foreign as- event of a future confrontation? The with an uninterrupted flow of foreign sistance policy should do no less. I call answer is yes. Are these weapons sales aid dollars and instead use foreign as- on the Administration and this body to to China in the interests of American sistance as a tool to leverage peace. take a fresh look at how we apply our national security? Of course not. I was We are certainly not doing so now. foreign assistance to the Middle East one of the initiators of the enabling Just a few weeks ago, the State De- before we take up another foreign pol- legislation of the U.S.-China Security partment confirmed the intended sale icy measure in the Senate. Review Commission, a bipartisan Con- of 53 advanced anti-ship missiles to And when we take that fresh look at gressional commission. One of its spe- Egypt. Egypt contends that these mis- our Middle East policy, we should look cific mandates is to analyze the trans- siles are needed to protect its borders, at all facets—all facets—of our rela- fer of our advanced military and dual- but the fact is, these deadly accurate tionship both with Israel and its Arab use technology by trade, procurement, missiles have the range to threaten neighbors. For example, if we are quick or other means to China. The Commis- Israel’s ports and shipping. Given the to condemn Iran for the transfer of sion is looking into technology trans- tinderbox that is the Middle East missile technology to North Korea, fers to the PRC through third parties. today, why is the United States con- how can we stand silent in the face of Another specific mandate to templating sending these weapons into Israel’s sale of advanced weapons and The Commission is to look at the the region at this time? components to China—weapons that proliferation of weapons of mass de- Meanwhile, we routinely sell ad- are based on U.S. technology or devel- struction. The basic purpose of the vanced aircraft and missiles to Israel oped in Israel with U.S. tax dollars? Commission is to assess the impact of as part of our foreign assistance pack- China may not be in the same category these and other acts on the national se- age. Some of these U.S.-made high-tech as North Korea, but it defies logic to curity interests of the United States. weapons have been used to target and think that the sale of advanced Amer- The Commission is to report its find- assassinate Palestinian terrorists. Just ican weapons technology to China is in ings and recommendations to Congress days ago, we again saw television im- the security interests of the United and the President in May. I look for- ages of Israeli-operated, American- States. Foreign policy decisions do not ward to the report today, the United made jets and helicopters launching exist in a vacuum. Our support for States is embroiled in a war of its own missiles at buildings used by the Pales- Israel affects the Arab world’s policies in the Middle East. Until recently, the tinian Authority. You can be sure toward the U.S. The weapons systems Israeli-Palestinian conflict had largely those images were seen throughout the that Israel sells to China could effect vanished from the headlines, displaced Arab world. How can we demand peace China’s capability to inflict harm on by the specter of hand-to-hand combat on one hand when we are providing in- the United States. With the new ur- between American troops and Taliban struments of destruction with the gency to protect our homeland, these forces in Afghanistan. But the impor- other? are significant issues that should be tance of seeking a peaceful solution to Israel and the United States are the dealt with honestly and openly in fu- the violence between the Palestinians staunchest of allies. No one should ture foreign assistance programs. and the Israelis is no less urgent than question our support of Israel’s right to In light of September 11, the P–3 inci- it has always been. The recent terrorist exist. But support need not translate dent of April 1 has almost faded from attacks against innocent Israeli citi- into enabling. The United States, the many memories. That was 5 months be- zens and the possibility that Israel will Middle East, and the world would be fore 9–11, and our service men and launch its own war against Palestinian better served if we changed our policy women were put in harm’s way by a terrorists is all the proof—all the in the Middle East to reflect reality, brutal regime, which summarily exe- proof—that we need. not rhetoric. The Palestinians must cutes dissidents and independence- If this cycle of violence continues stop the cycle of violence. The Israelis seeking nationalists in Tibet and other unabated, if the Israelis and the Pal- must practice restraint. The United occupied lands. Have the recipients of estinians are unable to come to terms States must back up its words with ac- our fungible foreign aid dollars and themselves, then the United States tion. other friends and allies been arming should intervene by conditioning fu- We have a road map to restart the this potential adversary of ours, which ture foreign assistance to the Middle Middle East peace process, the Mitchell in turn provides chemical and biologi- East—to all the major players, includ- Report. This blueprint, drawn up by cal weapon delivery systems to ter- ing Egypt, including Israel, including former Senator George Mitchell and rorist-sponsoring states? The answer is Jordan and including the Palestin- issued last April, is a step-by-step plan yes. China is a known proliferator of ians—on implementation of the Mitch- to end the violence and resume nego- chemical weapons and ballistic mis- ell Report or something very like it. tiations between the Israelis and the siles capable of delivering chemical and U.S. interests are not served by the Palestinians. The Mitchell Report is biological warheads, and Britain, perpetuation of violence between the often cited as a practical and workable France, Russia, and Israel have been Israelis and the Palestinians. No one solution. It has strong support in both selling weapons and transferring ad- should be more cognizant of this fact the Administration and the Congress. vanced military and dual-use tech- than the citizens of Israel, where pre- But to date, it is doing little more in nologies to China. Regrettably, our cious lives have once again fallen vic- real terms than gathering dust on a record is not clean either. Our exces- tim to Arab extremists bent on wreak- shelf. To date, there has been no incen- sively profit-motivated corporations ing havoc. No one should be more cog- tive on either side to make the hard de- have also transferred technologies to nizant of this fact than Yassar Arafat, cisions that are required to actually the PRC, sometimes as the price of who time and again has failed to mod- implement the steps of the Mitchell doing business there and sometimes erate the extremist Palestinians who Report. even voluntarily. China is known to are determined to sabotage any move- It is time for the United States to have provided missiles capable of being ment toward peace. No one should be provide some incentive. It is time to equipped with chemical and biological more cognizant of this fact than the try to implement the Mitchell Report. warheads to Iraq. Iraq is a terrorist United States, which has spent billions Just as we must hold the Palestinians state, a manufacturer and user of upon billions of tax dollars and spon- responsible for increasing the violence, chemical and biological weapons, and a sored countless rounds of peace talks, so must we hold the Israelis respon- sponsor of terrorist groups. China has to no apparent avail. sible for the inflammatory expansion provided ballistic missiles to Saudi The path to peace in the Middle East of settlements in disputed areas. The Arabia, to Syria, to Iran, and to Libya. is a two-way street, and like most Mitchell Report provides a clear and It has provided nuclear weapons to roads in that ancient part of the world, unbiased insight into the realities of Syria, to Japan, and to Iraq. It pro- the path is steep and the path is rocky

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00123 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S13896 CONGRESSIONAL RECORD — SENATE December 20, 2001 and the path is difficult to traverse. We seemed to be giving money to all for homeland security, $5 billion a But, with faith and perseverance, it sides with no assurances and some- year; what it would do for New York need not be a dead end street. There is times not even participation by those City? We give these dollars practically no ideal solution to the travail in the who received that aid. I have always without asking a question. I think both Middle East. There is no right answer, thought it was almost contradictory, those countries look upon this $5 bil- there is no fair solution, there is no maybe even hypocritical. This is a lion—$3 billion in the case of Israel, $2 justice for all those who have suffered. volatile part of the world. It is a place billion in the case of Egypt—I think There is only accommodation and ac- where the pages of history do reflect they virtually look upon these $5 bil- ceptance, giving ground and restrain- conflict and bloodshed. We all hope and lion as entitlements. They put these ing hatred. But there is no other solu- pray for a peaceful solution. figures into their budgets. They appar- tion. I do think it is going to take an ex- ently have no doubts that the moneys If the Palestinians and the Israelis traordinary effort. First, the Palestin- are going to come. And the way we continue to pursue hatred and revenge, ians have to be prepared to accept have been operating for several years, the future of Israel will be written in peace and security with Israel. Israel those moneys have come. blood, as the past pages are written in has to be prepared to seek a negotiated I think it is time to put some strings blood, and the dreams of a new Pales- peace agreement. All have to be par- on those moneys: If you want this tinian state will lie shattered in the ticipants, including other Arab coun- money to help, we want you to work dust. If the players in this tragedy can- tries in the world receiving aid from for peace. not bring themselves to accept that America. And America has to be pre- That is what I am saying today. I am fact, the United States should use its pared to press these points on them. not attempting to take any sides. But every tool—every tool—and I am in- I say to Senator BYRD, I appreciate we hand this taxpayers’ money out to cluding dollars, I am including the in- his taking the time. More Senators the tune of $5 billion a year. That is $5 strument of foreign assistance—to should think about this subject and ex- for every minute since Jesus Christ pressure the sides to negotiate a peace. press themselves. We should take a was born. We ought to make those dol- To do otherwise makes us little more look at our foreign operations appro- lars work for peace, and we can make than an accessory to the violence. priations process more closely, maybe them work for peace. That is what I am Mr. President, these are strong consider making some changes next asking. words. They are intended to be. These year. I thank the distinguished Republican are perilous times. This is not the time We also need to take advantage of leader. to mince words. As we saw on Sep- this time in which we find ourselves Mr. CONRAD. Mr. President, I rise to tember 11, and as we all fear we may with support from countries that have offer for the RECORD the Budget Com- see again, allowing hatred to rage un- not traditionally been our allies, a mittee’s official scoring for the con- fettered in the Middle East places our number of people who are working with ference report to H.R. 2506, the Foreign very homeland in jeopardy. The war us against whom we had been taking Operations, Export Financing, and Re- that we are waging against terrorism is unilateral sanction actions. We should lated Programs Appropriations Act for the first and most urgent step in pro- review all of that. The world is dif- fiscal year 2002. tecting our homeland. But defeating ferent now. It is an opportunity, as we The conference report provides the terrorists is only the first step. We move forward in fighting terrorism, $15.346 billion in discretionary budget must also work to eradicate terrorism, completing the action in Afghanistan, authority, which will result in new eradicate the causes, if we can. Aban- and looking at where terrorism may be outlays in 2002 of $5.537 billion. When doning conventional wisdom in these in other parts of the world. It is going outlays from prior-year budget author- unconventional times and using our to be an opportunity for this adminis- ity are taken into account, discre- foreign assistance dollars to effect tration, under the leadership of Presi- tionary outlays for the conference re- change instead of making a pro forma dent Bush and Secretary Powell and port total $15.106 billion in 2002. By allotment of funds is the best, and per- his other advisers, such as Condoleezza comparison, the Senate-passed version haps the only, means that we have at Rice, to change our thinking and to of the bill provided $15.524 billion in hand to help shape a peaceful future for improve our position and our relation- discretionary budget authority, which the Middle East. ship with a number of countries around would have resulted in $15.138 billion in Mr. President, I yield the floor. the world. total outlays. H.R. 2506 is within its The PRESIDING OFFICER (Mr. I thank Senator BYRD for his re- Section 302(b) allocation for both budg- CORZINE). The Republican leader. marks this afternoon. I do commend et authority and outlays. In addition, Mr. LOTT. Mr. President, I see the them to all Senators when they have it does not include any emergency des- Senator from Louisiana will be seeking an opportunity. ignations. recognition in a moment. I will be rel- Mr. BYRD. Will the distinguished Re- I ask unanimous consent that a table atively brief. publican leader yield? displaying the Budget Committee scor- Let me say to Senator BYRD from Mr. LOTT. I am glad to yield to Sen- ing of H.R. 2506 be printed in the West Virginia, I stayed on the floor be- ator BYRD. RECORD. cause even in all the tumult here this Mr. BYRD. I thank the leader for his There being no objection, the mate- afternoon, as we were trying to get comments and his observations. I rial was ordered to be printed in the final agreement on a number of bills or thank him for remaining on the floor, RECORD, as follows: establish disagreement, I learned that and I thank him for what I accept to be Senator BYRD was going to give a an observation that we do need to use H.R. 2506, CONFERENCE REPORT TO THE FOREIGN OPER- speech on foreign policy issues. I have our foreign aid dollars as a tool to help ATIONS, EXPORT FINANCING, AND RELATED PROGRAMS heard him speak on this subject before bring about peace in the Middle East. APPROPRIATIONS ACT, 2002 and found it very interesting, thought- I am not attempting to take sides [Spending comparisons—Conference Report, in millions of dollars] ful, and thought provoking. That is one way or the other. We give $3 billion General pur- why I stayed and listened because I to Israel every year. We give $2 billion pose Mandatory Total wanted to hear what the Senator from to Egypt—$5 billion. And we seem to Conference report: West Virginia had to say in this area. give this without asking the question. Budget Authority ...... 15,346 45 15,391 As I suspected, I found it interesting We ought to require both Israel and Outlays ...... 15,106 45 15,151 Senate 302(b) allocation:1 and useful. I hope the administration Egypt to work hard for peace and to be Budget Authority ...... 15,524 45 15,569 will review these remarks, and I hope willing to give a little here and give a Outlays ...... 15,149 45 15,194 President’s request: those in the Middle East who are in- little there or else this money isn’t Budget Authority ...... 15,169 45 15,214 volved in a very dangerous situation on going to be paid. Outlays ...... 15,081 45 15,126 House-passed: all sides will take into consideration Could the leader imagine with me Budget Authority ...... 15,167 45 15,212 what has been said there. what we could do in this country for Outlays ...... 15,080 45 15,125 Senate-passed: For years I have been concerned that the American people with $5 billion Budget Authority ...... 15,524 45 15,569 our policy didn’t always make sense. more every year; what that would do Outlays ...... 15,138 45 15,183

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00124 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S13897 H.R. 2506, CONFERENCE REPORT TO THE FOREIGN OPER- The tragic events of September 11 lion over the next 5 years. A cost which ATIONS, EXPORT FINANCING, AND RELATED PROGRAMS were a wake-up call. The United States we must be prepared to share among APPROPRIATIONS ACT, 2002—Continued is not isolated from the rest of the the donor community. [Spending comparisons—Conference Report, in millions of dollars] world in a sea of invulnerable tran- As we speak there are students in the quility. As we stand here today, there very schools in Pakistan that I spoke General pur- of learning to hate America. As we pose Mandatory Total are radicals preaching anti-American sentiments around the globe. They are speak there are anti-Western senti- CONFERENCE REPORT ments being preached to people in COMPARED TO saying that democracy breeds corrup- Senate 302(b) allocation:1 tion, and that globalization is the rea- some mosques in west Africa. What are Budget Authority ...... ¥178 0 ¥178 son for poverty. These radicals take ad- we doing to expose them to American Outlays ...... ¥43 0 ¥43 President’s request: vantage of the desperation of the poor values and ideals so that they will not Budget Authority ...... 177 0 177 and the hopeless. be the perpetrators of violence against Outlays ...... 25 0 25 House-passed: Poverty and ignorance are one of the U.S. citizens in the future? Budget Authority ...... 179 0 179 most fertile breeding grounds of ter- The United States cannot be all Outlays ...... 26 0 26 Senate-passed: rorism. By now my colleagues are things to all people everywhere. We Budget Authority ...... ¥178 0 ¥178 aware of the fact that many members cannot cure the ills of the world. And I Outlays ...... ¥32 0 ¥32 of the Taliban, the same group of rad- do not believe that eliminating poverty 1 For enforcement purposes, the budget committee compares the con- ical fiends that harbored Osama bin will be the silver bullet that eradicates ference report to the Senate 302(b) allocation. terrorism. There is no silver bullet or Notes.—Details may not add to totals due to rounding. Totals adjusted Laden, were refugees in Pakistan who for consistency with scorekeeping conventions. were too poor to afford school. They magic potion that will achieve that Mr. BIDEN. Mr. President, the For- were educated in radical seminaries aim. But let’s consider the state of our eign Operations appropriations bill is that they attended free of charge. efforts today. President Bush has de- one of the most important appropria- Where were we and the rest of the clared a war on terrorism. He has stat- tions related to national security that international community with an al- ed that we must fight terrorism on all Congress makes during the course of ternative for these children? We were fronts. I submit that foreign assistance the year. It is a little known fact to absent. It did not concern us. It was is one important tool in our arsenal. most Americans, but foreign assistance not our problem. We have just been rudely and is among the first lines of defense in On the other side of the world in shockingly awakened to the fact that ensuring the safety and security of Mali, a Washington Post article dated we need to take advantage of each of each and every American here and September 30 states that Muslim mis- these tools. abroad. sionaries have taken ‘‘hundreds of re- There is nothing we can do which Through this appropriation we fund cruits’’ abroad for religious training. would 100 percent guarantee that anti-terrorism activities, we provide The story states that radical Islamic America will not be attacked by terror- money to give jobs to Russian nuclear religious movements are gaining popu- ists again. What we can do is mitigate physicists who would otherwise be of- larity due to corruption and rising pov- the threat. We can help the UN and the fering their services to whatever ter- erty. Are we going to ignore the warn- government of Pakistan provide alter- rorist organizations were willing to ing signs in west Africa as well? Will natives to the madrassass that refugee pay them, we fund our antinarcotics ef- we let Mali, an emerging democracy children in Pakistan attend because forts and provide money to combat the struggling to hold on by the skin of its there is no other form of education spread of deadly diseases before they teeth, become a source of turmoil, un- available. We can help eliminate pov- erty and corruption in developing reach our shores. Mr. President, we are rest and violence? The government countries that radical elements seize in no way devoting the necessary re- there is trying to do the right things in on as a reason to attack so called west- sources to the front line. terms of economic and market reform. ern values and democracy. I thank the Chairman and Ranking We should be empowering the Agency Member of the Foreign Operations Ap- The United States is spending a bil- for International Development and the lion dollars a month on the war in Af- propriation sub-Committee. They did State Department to provide the coun- the best they could with the allocation ghanistan. I do not begrudge a penny of try with the ability to make the tran- they were given. I know that if he had that money. We must do whatever it sition to democracy in such a way that his druthers the chairman would have takes for however long it takes to wipe all people benefit. This appropriation been working with a much bigger num- Al-Qaida from the face of the earth. in no way provides enough money to ber. I do not intend to criticize the However, I strongly believe that we hard work that the subcommittee has adequately do so. must do all we can to prevent ever hav- Those who are hopeless and dis- done. And I will acknowledge that for ing to fight such a war again. One of affected swell the ranks of terrorist or- its part, the Senate Budget Committee the ways we can do this is to invest ganizations. Autocratic politically re- certainly exceeded the administra- more in preventative measures. We tion’s grossly inadequate request when pressive regimes, where discontent and must foster the spread of democracy, it made the initial allocation. I ap- disagreement cannot be expressed, are bolster the judicial and law enforce- plaud that. And I applaud the fact that fertile grounds for terrorist recruit- ment capabilities of developing coun- the conferees understood the impor- ment. In countries that prohibit free tries and help strengthen the econo- tance of the Non-proliferation, speech, freedom of association and po- mies where necessary. What we have AntiTerrorism, Demining and Related litical choice, violence becomes the done to date is clearly not enough. Programs, fully funding vitally impor- only means through which to affect po- Mr. GRAHAM. Mr. President, I rise tant accounts such as those for Non- litical change. The United States for- today to speak in support of adoption proliferation and Disarmament, the eign policy apparatus has the mandate of the conference report on the Fiscal Comprehensive Nuclear Test Ban Trea- to push for change in these countries. Year 2002 appropriations bill for For- ty Organization Preparatory Commis- It lacks the means to do so to the ex- eign Operations H.R. 2506. sion, Antiterrorism, Terrorist Interdic- tent necessary. The annual Foreign Operations ap- tion and the International Science and I say to my colleagues that we have propriations bill is the primary legisla- technology Centers. got to take heed. The problems in tive vehicle through which Congress re- What I would say to my colleagues, other countries are our problems. We views the U.S. foreign aid budget and however, is that the conference report, need to engage, and it is impossible to influences executive branch foreign although it is slightly more than the do so on the cheap. We cannot ade- policy making generally. It contains administration’s request, makes it quately engage the world with the the largest share—over two-thirds—of clear that we need to do much, much monies allocated in this appropriation. total U.S. international affairs spend- more. We need to stop thinking about The United States cannot hope to par- ing. foreign assistance as a handout, as wel- ticipate meaningfully in the recon- I regret that I was forced to vote fare for the developing world, and con- struction of Afghanistan out of these against the original Senate version of sider it a strategic investment in meager funds. The cost of that alone is this bill on October 24th, after the Sen- America’s security. projected to be as much as $18–20 bil- ate rejected my attempts to restore

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00125 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S13898 CONGRESSIONAL RECORD — SENATE December 20, 2001 funding for the Andean Regional Initia- I am pleased to support the con- ingfully in the political process, are tive to the level which the administra- ference report, and I encourage my col- not training to be terrorists. tion had requested. leagues to do so. For years, organizations working on The Andean Regional Initiative rep- Mr. LEAHY. Mr. President, we are the front lines in poor countries have resents our best strategy for fighting about to pass the foreign operations appealed to the Congress and the ad- terrorism in this hemisphere. President conference report for fiscal year 2002. I ministration to significantly increase Andres Pastrana and his administra- want to again thank Senator MCCON- the amount of funding to address the tion have been leading a valiant fight NELL, Chairman BYRD, and Senator inter-related problems of population against the narcotraffickers who have STEVENS for their support throughout growth, poverty, political and eco- been threatening the economy, the so- this process. nomic instability, corruption, environ- ciety, the very civilization of the Re- I also want to recognize Chairman mental degradation, narco-trafficking, public of Colombia for more than two KOLBE, who worked extraordinarily and terrorism. Year after year, the decades now. hard to get this conference report Congress and the administration have In 2000, Congress approved the first passed in the House, and Congress- turned a deaf ear. installment of our commitment to woman LOWEY, who was extremely Is it any wonder that Afghanistan Plan Colombia. President Bush cor- helpful. This was a collaborative effort today is a destroyed country that be- rectly requested $731 million for Fiscal in every sense of the word. came a haven for terrorists? Year 2002, which would have broadened Mr. President, the attacks of Sep- Part of the problem is misconcep- our involvement beyond military sup- tember 11th hold important lessons tions about the foreign operations port and expanded this assistance to that are relevant to this conference re- budget. People think it’s some kind of Bolivia, Ecuador and Peru. port. They showed us how our security give-away, when in fact, we use it to The Senate bill would have cut this is directly and indirectly linked to protect our security. important strategic initiative by 22 events and conditions around the Mr. President, since September 11th, percent, from $731 million to $567 mil- world. a large majority of the American pub- lion, which would endanger the With the exception of the cost of de- lic, and a broad, bipartisan cross-sec- progress we have made. ploying our Armed Forces, the $15.3 bil- tion of Members of Congress—Demo- The conferees have agreed to fund lion in this conference report is what crats and Republicans, liberals and the initiative at $660 million, which we have available to protect our secu- conservatives—have called for substan- represents a reduction of $71 million tial increases in funding to address the rity outside our borders. from the President’s request, but that These funds are used to combat pov- causes of poverty and disillusionment is $93 million above the Senate’s level. erty, which engulfs a third of the that persists not only in many Muslin While I remain concerned about what world’s people who barely survive, and countries, but among a third of the the impact will be on the program at world’s population. often succumb, on less than $2 per day. the level of funding, it is an improve- We can no longer pretend that spend- The misery, despair and ignorance that ment to the Senate’s position, so I am ing 1 percent of our $2 trillion Federal willing to vote for this conference re- poverty breeds is unquestionably one of budget is a serious response to these port. the reasons for the resentment felt by national security needs. The widening I also want to emphasize my support so many people toward the United gap between rich and poor nations is for other important priorities that are States. the best evidence of that. funded by this conference report—pri- The funds in this conference report Many have made these points before. orities that I in no way intended to dis- are used to protect the environment Today they are a common refrain. Sen- avow when I voted against the Senate and endangered wildlife, to strengthen ators FEINSTEIN, GORDON SMITH, and I version of the bill. democracy and the rule of law, and to have introduced a resolution calling for They include $2.04 billion in military help prevent the proliferation of chem- tripling the foreign assistance budget. grants and $720 million in economic ical, biological, and nuclear weapons. Others have proposed similar legisla- grants for Israel in Fiscal Year 2002. We support agriculture research at tion. There have been numerous We have no stronger ally in the glob- American universities, and we promote speeches, editorials, and other com- al war on terrorism than the State of exports through loans and guarantees mentary. Israel, and this aid recognizes Israel’s for American companies competing in Yet we have yet to see any effective key role in helping us protect our in- foreign markets. response from the political process. terests in the Middle East and around Mr. President, we call these pro- Our foreign assistance budget—I would the world. I am profoundly grateful for grams ‘‘foreign assistance.’’ They are prefer to call it our international secu- the support and assistance that our held up as proof of America’s gen- rity budget—has fallen in real terms good friends have provided, and I have erosity. But anyone paying attention since the 1980s. Rumor has it that the no doubt that their assistance will con- can see that is only part of the story. President’s fiscal year 2003 budget re- tinue well into the future. These funds directly, and indirectly, quest for International Affairs will be They include a 22 percent increase in protect our economy, our democracy, at about the fiscal year 2002 level—in disaster aid, to $235 million. our national security. It is in our self- other words, business as usual, despite The Global Fund to Fight HIV/AIDS, interest, plain and simple. the lessons of September 11. Malaria, and Tuberculosis—a new ini- This conference report contains 1 That would be extraordinary short tiative for Fiscal Year 2002—receives percent of the total federal budget. On sighted. We cannot possibly deal a last- $435 million from the Child Survival a per capita basis that amounts to ing blow to international terrorism and Health Programs Fund and $40 mil- about $40 per American citizen per without a multi-prong strategy—ad- lion in other accounts. year—the cost of a pair of shoes. dressing the social and economic They include $3.5 billion for the To use another example, next year causes of terrorism and conflict with Agency for International Development we plan to spend about $150 million on foreign assistance, diplomacy, and law (AID). This is $350 million above the children’s education in poor countries enforcement, and when necessary, mili- administration’s request and $210 mil- where many children, especially girls, tary force. lion above fiscal year 2001. receive only a few years of schooling. Mr. President, the security of an And finally, there are several ter- That is less than most American cities American citizen is worth a lot more rorism-related issues addressed in the spend on children’s education, yet that than the price of a pair of shoes, yet Foreign Operations bill, including di- is all we have for the whole world. that is how much we are spending on rect funding for two counter-terrorism A year ago, some might have asked the prevention part of this strategy. It programs; increased resources to meet what children’s education in Afghani- is, frankly, ludicrous. physical security needs at USAID’s stan or other countries has to do with We argue over a few million dollars overseas missions; aid restrictions for America’s security. Today it should be to alleviate the suffering in refugee countries engaged in terrorist activi- obvious. People who are educated, who camps, which are fertile grounds for ties, and aid allocations for nations can earn money to feed and clothe terrorist recruits. We debate about an- helping combat terrorism. their families, and participate mean- other $5 or $10 million to help the

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00126 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S13899 world’s poorest families start busi- assistance to the Colombian Armed In addition, I am particularly pleased nesses, to work their way out of pov- Forces, and on the aerial spraying of that Armenia will receive significant erty. We rob Peter to pay Paul to get a chemical herbicides which are used to military financing and training assist- few more millions for children’s edu- eradicate coca. ance and it is my hope that in the long cation or programs to improve health The conference report provides $34 run, this balanced approach will speed care. We struggle, year after year, to million for the UN Population Fund, the Nagorno-Karabagh process. increase funding for family planning and $446.5 million for USAID’s family I would like to express my gratitude and reproductive health to the level it planning and reproductive health pro- to Senators LEAHY and MCCONNELL for was six years ago. grams. Although still less than what their hard work with regard to this Have we so soon forgotten the lessons the United States was providing for bill. In addition, I would like to recog- of September 11? We are the richest, these activities in the mid-1990’s, it is nize the input of those individuals and most powerful nation in history, yet an increase above the fiscal year 2001 organizations from the Armenian- we continue to act as though the rest level. With 100 million new births each American community who understand of the world barely matters to us. year—95 percent of which are in devel- the importance of America’s efforts to We cannot put those lessons into ef- oping countries many of which cannot combat terrorism in the aftermath of fect without Presidential leadership. If feed their people today, these programs September 11th. President Bush, today, were to ask are of vital importance in combating Mr. MCCONNELL. Mr. President, I every American to support a tripling of poverty. thank my colleagues for their patience our foreign operations budget, and he The conference report contains the as the final negotiations on the FY 2002 explained why it is important too our usual earmarks for the Middle East foreign operations bill came to a con- national security and to combating countries. It also continues various clusion only this week. international terrorism, does anyone limitations or restrictions on assist- The conference report reflects a com- think the Congress would not respond ance to several governments beyond promise between both sides of the aisle or that the public would object? The those I have already mentioned, where in the Senate, and with our House col- polls show unequivocally that the pub- there is a history of corruption or leagues. Let me take a brief moment to lic understands these issues. human rights violations that have gone underscore a few accomplishments in This conference report is the best we unpunished. the bill: could do with what we had, and we owe Mr. President, I want to again thank Conferees accepted the Senate Senator MCCONNELL for his invaluable a debt of gratitude to Chairman BYRD amendment—which was painstakingly help. and Senator STEVENS. But we need a reached with the help of Senator Mr. LEVIN. Mr. President, we have BROWNBACK—permitting counter multi-prong strategy if we are going to before us, the foreign operations, ex- combat international terrorism and terrorism assistance to Azerbaijan, port financing, and related programs while protecting the integrity of sec- protect our other security around the bill, H.R. 2506, for fiscal year 2002. This world. I hope someone in the White tion 907 of the FREEDOM Support Act. bill is the primary legislative means by This will ensure that America’s war on House is listening, because this is what which this body can review the U.S. the President should be saying to terrorism can be waged effectively— foreign aid budget. That has always but not at the expense of the ongoing America and the world. been an important task, but the events negotiations between Armenia and Mr. President, I want to briefly men- of September 11th have only enhanced Azerbaijan. I thank all the conferees tion a few of the important provisions the importance of examining our prior- for understanding the delicate balance in this conference report. ities and international commitments struck on this important issue, and I It provides sufficient funding for the as we seek to stop international ter- want to recognize the unabashed patri- Export Import Bank to support export rorism while continuing to promote de- otism of the Armenia-American com- financing well above the fiscal year mocracy, the rule of law and free mar- munity in supporting the Senate’s lan- 2000 level. This is of great importance kets throughout the world. to American companies who compete The events of September 11th have guage. for markets in developing countries. caused the United States to re-examine Conferees accepted, with modifica- It provides increases for the Foreign its relations with many nations includ- tions, the Senate amendment providing Military Financing and International ing Armenia and Azerbaijan. For near- $10 million for programs and activities Military Education and Training pro- ly a decade, our relations with these to promote democracy, human rights, grams. two nations has been shaped by section the rule of law, women’s development, It includes additional funding for 907 of the FREEDOM Support Act, 102– and press freedoms in countries with a international peacekeeping and for as- 511. Section 907 has restricted aid to significant Muslim population, and sistance for the former Yugoslavia, in- Azerbaijan until it ceases the blockade where such programs would be impor- cluding Serbia, Montenegro, and Mac- and use of force against Armenia and tant to America’s war on terrorism. I edonia. Nagorno-Karabagh. Section 907 has strongly urge the administration to act It includes $475 million for the pre- been seen as a vital tool in the efforts quickly in supporting activities relat- vention and treatment of HIV/AIDS, to encourage Armenia and Azerbaijan ing to the welfare and status of Afghan including $50 million for the Global to resolve the dispute over Nagorno- women, and to explore initiating wom- Fund to combat AIDS, TB and malaria. Karabagh in a peaceful manner. en’s development programs along bor- This falls short of what our country In spite of the vital role section 907 der areas where Afghan refugees are lo- should be providing, but it is a signifi- has played in trying to end the block- cated. cant increase above last year’s level. ade of Nagorno-Karabagh, H.R. 2506 Conferees maintained, with modifica- The conference report also increases will allow the President to waive sec- tions, House language requiring the funding for other infectious disease and tion 907 only with respect to our imme- President to report to Congress on children’s health programs. These pro- diate crisis, the international was whether the Palestinian Liberation Or- grams are desperately needed to against terrorism. It is my hope that ganization, PLO, has lived up to its strengthen the capacity of developing the President will not use this waiver 1993 commitments to renounce the use countries to conduct surveillance and given the important role section 907 of violence against Israel. My col- respond to diseases like polio and mea- plays in encouraging a cessation of this leagues may recall that the Senate did sles. But they are equally important blockade that threatens the peace and not offer a similar provision—at the re- for combating the spread of biological stability of the entire Caucasus region. quest of Secretary of State Colin Pow- agents used in acts of terrorism, like I am heartened by the fact that Con- ell—but inclusion of this provision in anthrax. gress will review the waiver to section the conference report could not be It includes $625 million for the Ande- 907 in the FY 2003 Foreign Operations more timely. I am disheartened and an Counterdrug Initiative. This is in Appropriations bill and will be closely sickened by continued incidents of ter- addition to the $1.3 billion for Plan Co- monitoring Azerbaijan’s actions and rorism against the people of Israel. The lombia that we appropriated last year. progress in the Nagorno-Karabagh stakes are high for Chairman Arafat, We include several conditions on our peace process. and his political life is on the line.

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00127 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S13900 CONGRESSIONAL RECORD — SENATE December 20, 2001 Arafat needs to get a grip on the ex- It is interesting to note that Mexico hemisphere makes some sense. And tremists he has given free reign on the has never once been decertified. that is why I did not object to such a West Bank and Gaza. As we say in Ken- So this is not a U.S.-Mexico issue. moratorium when this issue first came tucky, you reap what you sow. This is an issue affecting our global ef- up on the floor of the Senate. Finally, I want to express my contin- forts to reduce the supply of drugs to But expanding the moratorium to ued frustrations with Egypt over its the United States. Suspending the cer- countries that have shown far less co- less than enthusiastic support for tification process worldwide means operation, and continue to do little to America’s war against terrorism, lack- that countries failing to cooperate in keep drug traffickers from producing luster performance to further the peace the drug war will face no penalty for drugs or moving drugs through their process between Palestinians and that failure. And that is a step we territory, is a step backward in the war Israelis, and continued anti-American should not be taking. against drugs. and anti-Semitic drivel in its govern- Now is not the time to be letting up I feel very strongly about this issue, ment-controlled press. I have said it on the war on drugs. and it is my belief that this provision before, and I will say it again: the The connection between terrorist and may very well be an attempt by the op- Egyptians need to be a better ally to narcotics traffickers is real, and closer ponents of the certification process to the United States. It is not acceptable than ever before. begin the process of dismantling cer- to purchase No-Dong missiles from In Colombia, in Afghanistan, and in tification altogether. North Korea. It is appalling to accuse other places around the world, drug Well, let’s just say that while I am the United States of fattening up the money helps terrorist organizations happy to work with my colleagues to people of Afghanistan before slaugh- carry out violent, destructive, and even consider reasonable ways to address tering them. And it is beyond the deadly acts of terror against citizens of the certification issue—especially, in realm of human decency that the song the United States and other countries. cases like Mexico, where the record ‘‘I hate Israel’’ by Shaaban Abdel The Drug Enforcement Administra- may warrant changes—I intend to Rahim is a popular hit in Egypt. Each tion estimates that last year, Afghani- make sure that next year’s foreign op- of these actions will be carefully con- stan supplied 70 percent of the world’s erations legislation does not reflect sidered during next year’s appropria- opium. Money from the drug trade in such a poorly conceived approach to tions process. Afghanistan helped keep the Taliban in this issue. Let me close my remarks by thank- power, and some of that money un- BIOTERRORISM ing Chairman BYRD, Senator STEVENS, doubtedly made it to the al Qaeda or- Mr. BYRD. While the Republican and all the members of the Foreign Op- ganization. leader is on the floor, if I may change erations Subcommittee for their sup- In Colombia, the FARC narco-terror- the subject, Senator PAT ROBERTS of port of this bill. My staff and I look ists make millions every year in extor- Kansas proposed to me earlier seeking forward to working with Senator tion and protection money from drug unanimous consent to pass a bioter- LEAHY and his capable crew—Tim traffickers. This money helps them rorism bill. Rieser and Mark Lippert—on the Fiscal maintain control over an area within Mr. LOTT. Yes, bioterrorism. Year 2003 foreign aid bill early next Colombia the size of Switzerland, and Mr. BYRD. At that point, I didn’t year. Finally, I extend my heartfelt funds activities that include kidnaping know about the bill and didn’t know thanks to Jennifer Chartrand, Billy and even murder. anything about it. I objected. I thought Piper, and Paul Grove for their hard Even beyond the drug-terror connec- he was going to remain around. But I work throughout this challenging year. tion, the drug trade around the world is want to say to the Senate Republican Mrs. FEINSTEIN. Mr. President, I ever-developing. Supplies of many leader that I have no objection. I have rise to express my sincere disappoint- drugs are near or at all time highs. In had my staff look at it, and I am ad- ment that the foreign operations con- the last few years alone, the drug vised by the staff and on reading this ference report before us includes a pro- known as Ecstasy has become a virtual measure and contemplating it and un- vision that will suspend the certifi- phenomenon among young people in derstanding it, I certainly have no ob- cation process worldwide. This goes far this country, and is smuggled into the jection if the leader wants to call it up. beyond what this Senate passed just United States from countries as diverse That is the bill in which PAT ROBERTS weeks ago. The certification process is this Na- as Mexico and the Netherlands, Bel- of Kansas is interested. tion’s best—and in many cases, only— gium and Israel. Mr. LOTT. That is the bioterrorism mechanism to persuade problem na- If anything, this administration and legislation, I might say to the Senator tions to work with us as we try to stem this Congress should be taking the cer- from West Virginia. It has been very the flow of illegal narcotics across our tification process even more seri- laboriously worked through by Senator borders and onto our streets. ously—not moving to abandon it CRAIG, Senator KENNEDY, and Senator The purpose of the certification pro- wholesale. FRIST. This is an area where we need to fess is not to punish any one individual If anything, the real threat of decer- do more. This is only authorization. It country, but rather to hold all coun- tification should be used more often as would still be subject to the appropria- tries to a minimum standard of co- a tool to modify the behavior of prob- tions process. But it does authorize a operation in the war against illegal lem nations, not less often. great deal more activity in very crit- drugs. In that regard, I believe it is the To do as this conference report does ical areas such as public health service. most effective system we have avail- and completely stop the certification And, of course, Senator ROBERTS also able to us. There simply is no alter- process for all nations will essentially worked to get a food aspect of that in native. remove the one good means we have of agriculture. Agriculture terrorism is Many have tried to turn the certifi- encouraging foreign nations to work an area where we have to be concerned, cation issue into a simplistic clash be- with us in reducing the supply of ille- too. tween the United States and Mexico. gal drugs to the United States. I think it is good legislation. I appre- To be sure, in the past that relation- This moratorium is a mistake, plain ciate Senator BYRD’s making that ob- ship has received the most attention. and simple. servation and agreeing that we could But in fact, there are more than 30 I do want to again stress that a par- move it. Once Senator REID returns to countries that undergo an annual cer- tial moratorium is warranted, particu- the floor, we will renew our unanimous tification review under current law— larly for the government of Mexico. I consent request at that time. including countries like Afghanistan, believe that Mexican President Vicente Mr. BYRD. PAT ROBERTS came to my Syria, Iran, Burma, and even China. Fox has shown a clear willingness to office earlier this year and explained Afghanistan, for instance, has been work with the United States in the the need for this kind of program. decertified 10 out of 12 times they have drug war, much like the government of Mr. LOTT. We need to do it because faced review. As a result, U.S. aid has Colombia has over the last few years in he has been in my office several times been withheld from the Nation. the battle against strong drug cartels. explaining it. I would like to get it Burma, also, has been decertified 10 That is why a temporary moratorium done because I have heard enough to be out of the 12 times it has faced review. on the certification process in this convinced.

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00128 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S13901 Mr. BYRD. I remove my objection. Otherwise, we would have lawsuits We should also revisit the issue Sen- VICTIMS’ TAX RELIEF being settled and attorney fees and pu- ator DOMENICI raised—the payroll tax Mr. LOTT. Mr. President, I do want nitive damages coming out of the Fed- holiday—and put that in place of some to say on other matters that we passed eral Treasury if we had a terrorist at- of the other provisions in this bill. This this afternoon and on which we didn’t tack that invoked this terrorism rein- bill is pretty expensive already. I think get to comment too much, I am glad surance. we need to take some things out of this we did what we did with regard to vic- So I hope we don’t have a situation bill. That would provide a quick, im- tims’ tax relief, the spouses who lost at the end of the year where buildings mediate impact on the economy. If we loved ones in the Twin Towers and at will not be able to be built because didn’t collect that 12.4 percent payroll the Pentagon. I met with a group of they won’t get loans because there tax for 1 month on individuals and em- them, most of them women, but a man won’t be terrorism insurance. Maybe ployers, that would have an impact im- also. too much won’t happen between now mediately. So that may be something It was one of the most cheerful and the end of January or early Feb- to which we will have to return. things I have experienced. These are ruary, but we need to address this There will be a lot of accusations women, most of them young women issue. When we do, it should have some back and forth as to why we didn’t get with children, some of them pregnant, reasonable tort reform included, as the it done, but I will say I think for the some of them with no income right Federal tort claims law now provides. American people, no matter how it now; some of them hadn’t gotten much One other brief point, and I will yield happened, it is a shame we didn’t com- in terms of charitable assistance. I was so others may speak. Mr. President, in plete work on that piece of legislation. floored to learn that we taxed chari- the 29 years I have been in Congress, I hope next year we will start on a table contributions or receipts to indi- the House and the Senate, we have positive note and pass a national en- viduals who had been hit by a disaster worked through a lot of difficult issues. ergy policy bill, and pass an agri- such as this. I think we should say as We have committee action, we pass culture bill that has better policy in it to the funds they receive from chari- things in the House and Senate, we than the one we considered, and also table contributions, these spouses who have intense negotiations in con- pass trade legislation that would help have lost their loved ones, not only ference, but at some point we bring it the economy. I think we can do those should they not have to pay taxes on to a conclusion and we pass it. things, a lot of other good things, and the charity they receive but no Amer- I have never seen an issue that more a stimulus bill if the economy calls for ican should. work went into than this stimulus it. I have gone back and checked on the package with no result. The President I yield the floor. history now and found out how that was personally involved. The President Mr. REID. Mr. President, on behalf of happened. At one point there was a personally made concessions. The Senator BYRD, I yield back the 17 min- budget need for $10 billion. So they House and the Senate were involved. utes he has. It is my understanding said, we can just do a tax on charitable We set up a system of negotiators in- that Senator Lott has the authority to receipts for 5 years and that will take volving Senator BAUCUS, Senator yield back the time of Senator MCCON- care of this $10 billion hole. GRASSLEY, and Senator ROCKEFELLER. NELL on the foreign operations bill. So I am glad we did that. I appreciate We finally had a bill before us this Mr. LOTT. Yes, and I do so. that there were Senators from all over afternoon that would provide stimulus The PRESIDING OFFICER. Under the country on other issues, such as for the economy, tax incentives for the previous order, the conference re- Senator BAUCUS and the Senator from businesses, big and small, and for indi- port to accompany H.R. 2506 is agreed New York, who were willing to put viduals to be able to keep a little more to and the motion to reconsider is laid aside very important issues to them to of their taxes, lowering the 27 percent upon the table. make sure we didn’t leave this issue on tax bracket down to 25, helping people Under the previous order, the Sen- the table. who make as low as $28,000 for an indi- ator from Virginia is recognized for up TERRORISM REINSURANCE vidual, and $40,000 for a couple—not ex- to 5 minutes. Mr. LOTT. Mr. President, another actly wealthy people, and not even Mr. ALLEN. Mr. President, I spoke issue I was very sorry we couldn’t work middle income, if you get down to it— to Senator BAUCUS, and I know he has out was the terrorism reinsurance. We and assistance for unemployed, in- a measure he wants to discuss and, should have moved that today. We creased benefits for them, and a new without objection, I would actually should have moved it a month ago. precedent of health insurance cov- defer to Senator BAUCUS for his re- What happened was Senator GRAMM, erage. marks he wanted to make if I may fol- Senator DODD, and Senator SARBANES We could not even get it up to a vote. low right behind Senator BAUCUS. came to agreement on a bill in the I believe if we would have had a vote on Ms. LANDRIEU. Reserving the right committee of jurisdiction, the Banking that issue today, there would have to object, I inquire of the Senator from and Financial Services Committee. It been 60 votes to override a point of Virginia and the Senator from Mon- had some limits on liability. But then order. I would not want to have to go tana about the timeframe they are it was basically taken away from those back to my State and explain how I speaking of because I wanted to ad- Senators, and they were told we were voted against a bill that provided addi- dress the Senate on a matter different not going to do it that way. tional unemployment compensation, from the subject about which they The bill that Senator DASCHLE asked health insurance coverage for the un- want to speak. consent to move this afternoon did not employed, expensing for small business Mr. BAUCUS. Mr. President, if I have any limits on attorney’s fees or men and women, and rate cuts for mid- might answer the question posed, it is any prohibitions on punitive damages. dle-income individuals. I don’t think I my intention that the matter I intend And Senator MCCONNELL then said: We could have defended that. Therefore, I to bring up will probably consume 4, 5 should move the bill, but we should would have voted for it, and I believe 60 minutes maximum. have at least a vote on whether or not or more Senators would have voted for Mr. REID. Mr. President, if I may there should be any limits on liabil- it. But it is here. ask the courtesy of my friends, Senator ities. That is all we were asking, not I hope the economy begins to show LOTT and I have something we have that it just be included, which it continued growth. There is good news been trying to do all day. It will take should have been because that was for the third week in a row. Unemploy- a short time, a unanimous consent re- what was in the committee, but that ment claims are down. We have a ro- quest. we have an opportunity to vote on bust, dynamic economy in America. The PRESIDING OFFICER. Is there that. Maybe it won’t be needed. But if we objection to the request of the Senator And, by the way, as an old whip, I come back in late January and Feb- from Virginia? had counted the votes, and the votes ruary and it is still stumbling along, Ms. LANDRIEU. I do object, Mr. were here in the Senate to pass that and we are not seeing positive signs of President. bill with no punitive damages allowed real recovery, we are going to have to The PRESIDING OFFICER. Objec- and some limits on liability. revisit this issue. tion is heard.

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00129 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S13902 CONGRESSIONAL RECORD — SENATE December 20, 2001 Mr. ALLEN. Mr. President, I say to as the court shall determine to be de- There being no objection, the Senate my friend from Montana, I would have sirable,’’ to use the exact language, and proceeded to consider the bill. liked to yield 5 minutes, but I had bet- other locations the court may find de- Ms. LANDRIEU. I am very concerned ter take them. sirable in their discretion. about help for for-profit hospitals if The PRESIDING OFFICER. The Sen- The reason for the six places is that they must deal with bioterrorist at- ator from Virginia is recognized. these are the sites of the terrorist at- tack. Their services are critical, and f tacks: the Pentagon and the World they face the same challenges as other Trade Center, and the others are the hospitals. They should be eligible for TERRORIST VICTIMS COURTROOM sites where commandeered aircraft ei- Stafford Act assistance under certain ACCESS ACT ther departed or intended to arrive. circumstances. Mr. ALLEN. Mr. President, I rise to Unfortunately, they did not. These lo- Mr. KENNEDY. I understand the con- discuss a bill we just passed, S. 1858. I cations obviously would have the cerns of my colleague. In many places thank my colleagues for their support: greatest number of interested people for-profit hospitals are the only pro- Senator KERRY, Senator NICKLES, Sen- and have victims in this attack. viders. I will work with her to address ator KENNEDY, and Senators WARNER, The legislation allows those who the these legitimate needs in conference. HATCH, and CLINTON. Particularly, I court determines to have a compelling FOOD SAFETY thank Senator NICKLES for he was of interest but who are unable to attend Mr. DURBIN. Mr. President, I am great help in getting this measure because of expense and convenience or pleased that the sponsors of the bill passed. simply a lack of space in the court- recognize the importance of strength- S. 1858 deals with the upcoming trial room to witness the trial. ening our Nation’s protections for food of Zacarias Moussaoui. Moussaoui has The courtroom in Alexandria, VA, safety and of addressing potential bio- been charged in a six-count indictment holds fewer than 100 people, and the terrorist threats against our food sup- with undertaking ‘‘the same prepara- sheer number of victims and others ply. Among the bill’s provisions are new authorities for the Food and Drug tion for murder’’ as the perpetrators of who meet the standard make it impos- Administration to require the mainte- the September 11 attacks, but his al- sible for them to observe in person. nance of food records, to inspect such leged participation had been thwarted While there is a great, deep wound for by his arrest the previous month in records, and to detain unsafe foods. the larger society, the wound is deepest I would appreciate clarification re- Minnesota. Now this measure is one and most deeply and painfully felt by that is helpful to all of us in that he is garding the standard of serious adverse the survivors and families who lost health consequences or death, which the only suspect with any direct con- loved ones. nection with the most vile and horrific applies to the authorities for inspec- I am glad we recognize in the Senate tion of records and administrative de- terrorist attack in our history. that we owe it to those victims’ fami- There will be substantial interest in tention, among others. It is my under- lies to allow them to see this open pro- standing that some have suggested the trial of Mr. Moussaoui on the part ceeding which is directly related to the of those who have been left behind, es- that foodborne pathogens such as sal- horrific event of September 11 that monella, listeria monocytogenes, pecially the families and loved ones of took the lives of their loved ones. In thousands who were killed on that shigella dysenteriae, and doing so, for those who want to watch cryptosporidium parvum, which in 1993 dreadful day. By some estimates, there the trials—others may not—for those are as many as 10,000 or 15,000 victims sickenened over 400,000 people in Wis- who want to, it will begin to help them consin who drank contaminated water, who may have an interest in viewing heal. this historic legal proceeding that will may not pose a threat of serious ad- It is a right approach that a compas- verse health consequences to healthy take place in the U.S. District Court sionate nation wants to provide to for the Eastern District of Virginia in adults. Most of these pathogens have these victims’ families. I thank the been identified by the CDC as possible Alexandria. Senators for their support, not of this The current policy of the Federal Ju- biological agents that could be used in legislation but for their support of the an attack against our citizens, and dicial Conference does not permit the families of these victims. televising of court proceedings. I am they could clearly pose a threat of seri- I yield back the remainder of my ous adverse health consequences or supporting legislation that would give time. Thank you, Mr. President. death to vulnerable populations, such Federal judges such discretion. But f as children, pregnant women, the elder- until that legislation passes, we will ly, transplant recipients, persons with not be able to address the interests of ORDER OF PROCEDURE HIV/AIDS and other immunocompro- victims’ families to view the pro- Mr. REID. Mr. President, I ask unan- mised persons. ceedings in the Moussaoui trial. imous consent that following my unan- Do the sponsors intend for the stand- In the past, exceptions have been imous consent requests the Senator ard in this bill, cited in the sections on made through congressional action, from Montana be recognized for up to 5 inspection of records, administrative most notably allowing the closed cir- minutes, the Senator from Louisiana detention, debarment, and marking of cuit transmission of the trials of Tim- for up to 5 minutes, and the Senator refused articles, to enable the Food and othy McVeigh and Terry Nichols from from Ohio for 10 minutes, as in morn- Drug Administration to act when a Denver to Oklahoma City, so that fam- ing business. foodborne pathogen presents a threat ilies in Oklahoma could witness the The PRESIDING OFFICER. Without of serious adverse health consequences proceedings. That is where Senator objection, it is so ordered. or death to such vulnerable popu- NICKLES was especially empathetic and f lations mentioned above, even if knowledgeable about how much this healthy adults may not face the same PUBLIC HEALTH SECURITY AND means to the victims’ families. risk? And do the sponsors agree that BIOTERRORISM RESPONSE ACT This legislation, S. 1858, is modeled the pathogens I mentioned previously OF 2001 on the law that allowed the Oklahoma may present such a risk of serious ad- City victims to witness the McVeigh Mr. REID. Mr. President, with the at- verse health consequences or death? I and Nichols trials, and this bill will ex- tention of the Senator from Mis- believe we must ensure that the law is tend the same compassionate access or sissippi, Mr. LOTT, I ask unanimous fully protective of all American con- benefit to the numerous victims and consent that the Senate now proceed to sumers. I hope that the sponsors share families of September 11. H.R. 3448, which is at the desk. my concerns. The legislation calls for the closed The PRESIDING OFFICER. The Mr. KENNEDY. Will the Senator circuit broadcast of the court pro- clerk will report the bill by title. from Illinois yield? ceedings to convenient locations in The legislative clerk read as follows: Mr. DURBIN. I am happy to yield to Northern Virginia; Los Angeles and A bill (H. R. 3448) to improve the ability of the Senator from Massachusetts. San Francisco, CA; New York City; the United States to prevent, prepare for, Mr. KENNEDY. First, I commend my Boston; and Newark, NJ. Also ‘‘with and respond to bioterrorism and other public colleague for his longstanding advo- the amendment in such other locations health emergencies. cacy for food safety. He has been a

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00130 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S13903 leader, both in the House of Represent- Mr. KENNEDY. I understand my col- Mr. GREGG. I concur, and I intend to atives and here in the Senate, in seek- league’s concerns and commend him press for adoption of these provisions. ing the resources, the authority and for his commitment to protecting con- Mr. FRIST. I agree and you have my the public awareness which will reduce sumers. His concerns are legitimate commitment to do the same. the yearly epidemic of foodborne ill- and I will work to improve these provi- Mr. SMITH. I again would like to ness. The CDC has estimated that sions in response to his concerns in the thank my colleagues for agreeing to foodborne diseases cause approxi- conference. fight for these provisions during con- mately 76 million illnesses, 325,000 hos- COMBATING BIOTERRORISM ference. It was with great reluctance pitalizations, and 5,000 deaths in the Mr. JEFFORDS. Mr. President, and that Senator JEFFORDS and I agreed to United States each year. my distinguished colleagues, I am allow S. 1765 to be brought to the floor I also point out that he has played an pleased that we are moving so quickly without our legislation included so instrumental role, with our colleagues, on legislation to combat bioterrorism— that we can move forward on this im- Senator MIKULSKI, Senator COLLINS, this is certainly a timely issue. portant bill and conference it with the and Senator CLINTON, in assuring that I would like to engage my colleagues House. However, it is important that food safety is addressed in this legisla- in a colloquy to clarify our commit- these immediate needs be addressed tion. ment to another important issue—the and that our proposals be included in In response to my colleague’s in- security of our Nation’s water supply. the final legislation. I look forward to quiry, I fully concur with his interpre- At the end of October of this year, I working with my colleagues to ensure tation of the food safety provisions in was joined by the ranking member of that the provisions we agreed to that our legislation. It is precisely our in- the Environment and Public Works comprise the modified versions of S. tent, with respect to the food safety Committee in introducing S. 1593 and 1593 and S. 1608 are included in the bio- sections of this bill, that the standard S. 1608. S. 1593 authorizes the Adminis- terrorism bill. of serious adverse health consequences trator of the Environmental Protection Mr. JEFFORDS. Finally, I want to or death with respect to these provi- Agency to establish a grant program to commend Senators KENNEDY, FRIST, sions in this bill should be understood support research projects on critical and GREGG and say that I am looking to enable the FDA to protect all Amer- infrastructure protection for water forward to working with them during icans, including vulnerable populations supply systems. S. 1608 establishes a the conference on these measures. such as children and the elderly. program to provide grants to drinking Mr. KENNEDY. Mr. President, I urge I agree that there are instances water and wastewater facilities to the Senate to approve this important where foodborne pathogens, such as meet immediate security needs. bipartisan legislation to respond to one those mentioned by my colleague, I understand that the gentleman of the most severe dangers our country whether accidentally or deliberately from Tennessee, the gentleman from faces, the grave threat of bioterrorist introduced into food, may threaten Massachusetts and the gentleman from attacks. I commend my colleagues some more vulnerable individuals but New Hampshire support the modified Senator FRIST and Senator GREGG for not the healthy adult population. For provisions of these bills. Is that cor- their impressive continuing leadership that reason, my colleague is correct rect? on this vital issue. that the agency would be able to exer- Mr. FRIST. That is correct. We are all well aware of the emer- cise these food safety authorities to Mr. KENNEDY. Yes, that is correct. gency we face. In recent weeks, a hand- protect such vulnerable populations. Mr. GREGG. Yes, that is correct be- ful of anthrax cases stretched our Mr. FRIST. Will my colleague yield? cause in the interest of time, we are health care system to the breaking Mr. KENNEDY. With pleasure. unable to change the bill prior to con- point. A larger attack could be a dis- Mr. FRIST. I concur with Senator ference. aster, and the attack of the past weeks KENNEDY’s remarks regarding this Mr. SMITH. I too would like to thank has clearly sounded the alarm. The standard as it applies to the food safety Senator FRIST, Senator KENNEDY, and clock is ticking on America’s prepared- provisions in this bill. As 21 C.F.R. 7.41 Senator GREGG for agreeing to work ness for a future attack. We’ve had the regarding health hazard evaluation with us to ensure these two proposals clearest possible warning, and we can’t makes clear, the FDA evaluation will are included in the bioterrorism pro- afford to ignore it. We know that lives take into account a list of factors, one posal. I regret that with the end of ses- are at stake, and we’re not ready yet. of which is ‘‘an assessment of hazard to sion quickly approaching, there is no The Department of Health and various segments of the population, in- time to incorporate these provisions Human Services has made anthrax vac- cluding children, livestock, etc. who into the underlying bill. As we all rec- cine available to workers at risk for ex- are expected to be exposed to the prod- ognized in our support for these pro- posure to the deadly spores, but there uct being considered with particular posals, since the September 11 attacks, has been few plans to distribute the attention paid to the hazard to those Americans throughout the country vaccine and inform workers about the individuals who may be at greatest have become concerned about the secu- risks and benefits of vaccination. In a risk.’’ rity of our Nation’s water supply. major outbreak, our public health I believe these provisions will help While it is widely believed that our agencies and hospitals would be protect the safety and security of our water supply is safe, there are a few strained to the breaking point by the food supply. vulnerabilities that must be addressed. task of providing vaccinations against Mr. DURBIN. I appreciate my col- Our bills would provide resources for anthrax, smallpox, or other deadly leagues’ willingness to clarify these research into security at facilities and plagues to thousands or even millions important points, and join them in sup- assessment tools while also providing of Americans. Some cities have already porting this important legislation. seed money to encourage additional developed plans and procedures for pro- ANTITRUST EXEMPTION spending on security measures. viding care to patients affected by bio- Mr. WELLSTONE. Mr. President, I Mr. JEFFORDS. Our colleagues on terrorism, but too few communities are am a cosponsor of this legislation be- the House side also recognized this adequately prepared. cause it is extremely important, but as need by including water security provi- The needs are great. A summit meet- I noted when the bill was originally in- sions in the bioterrorism bill, H.R. 3448, ing of experts on bioterrorism and pub- troduced, I am concerned about the that was passed by the House on De- lic health concluded that $835 million scope of the antitrust exemption. cember 12. I would like my colleagues’ was needed just to address the most I have three concerns in particular: assurance that during conference they pressing needs for public health at the There is no opportunity for public com- will press for adoption of the modified State and local levels. ment prior to the granting of an ex- versions of S. 1593 and S. 1608. The National Governors Association emption; the period of exemption is too Mr. KENNEDY. I intend to press for has said that States need $2 billion to long; and the criteria for granting the adoption of these provisions. The secu- improve readiness for bioterrorism. exemption are too broad with respect rity of our Nation’s water supply is John Hopkins Hospital is spending $7.5 to competitive impact on areas not di- crucial to the health and well-being of million to improve its ability to serve rectly related to the agreement. our citizens. as a regional bioterrorism resource for

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00131 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S13904 CONGRESSIONAL RECORD — SENATE December 20, 2001 Baltimore. Equipping just one hospital ployees at CDC headquarters in At- the development of sufficient smallpox to this level in each of 100 cities across lanta is working on the current out- and other vaccines to meet the needs of America would cost $750 million. break. Staffers worked round the clock the entire U.S. population. The Appropriations Committee has and slept in hallways and only 18 cases The legislation will also help protect recognized the importance of signifi- of actual illness was known. the safety of the food supply, through cant investments in bioterrorism pre- In a recent article, CDC Director increased research and surveillance of paredness. The Department of Defense Koplan summed up the situation this dangerous agricultural pathogens. conference bill provides as important way: Our legislation draws on the work down payment for the Nation’s needs Right now, we are working flat out. I keep and suggestions of numerous col- for bioterrorism preparedness. I com- thinking, if you know you;re in a marathon, leagues on both sides of the aisle. One mend Senator BYRD, Senator STEVENS, you pace yourself for a marathon; if you of the important areas addressed in the Senator INOUYE, Senator HARKIN, and know you’re in a sprint, ou pace yourself for legislation is the threat of agricultural Senator SPECTER for their impressive a sprint. But our guys are sprinting, and the bioterrorism. Deliberate introduction leadership in this area. In particular, sprint distance is long over. We’re sprinting of animal diseases could pose rave dan- a marathon. they have begun to address the basic gers to the safety of the food supply. issue of State and local preparedness The diversion of resources to anthrax Such acts of agricultural bioterrorism and the readiness of hospitals to deal has also led to the neglect of other im- would also be economically dev- with bioterrorism by providing $1 bil- portant health priorities. According to astating. The outbreaks of ‘‘mad cow’’ lion for these purposes. a recent article in the Chicago Tribune, disease in Europe cost over $10 billion, The need for help at the State and CDC has had to postpone programs to and the foot and mouth outbreak cost local level is especially urgent. In the prevent meningitis among college stu- billions more. We must guard against first 3 weeks of October alone, state dents. They’ve delayed the develop- this danger. health departments spent a quarter bil- ment of vaccines urgently needed to Protecting the safety of the food sup- lion dollars responding to the anthrax combat diseases in the developing ply is a central concern in addressing attack. Many departments were forced world. They’ve deferred activities to the problem of bioterrorism. Senator to put aside other major public health contain the spread of deadly infections CLINTON, Senator MIKULSKI, Senator responsibilities. resistant to antibiotics. Hawaii is fac- HARKIN, Senator COLLINS, and Senator Massachusetts has suspended many ing a serious outbreak of dengue fever. DURBIN have all contributed thoughtful public health activities other than bio- When local health authorities asked proposals about food safety. Our bill terrorism, and has fielded over 2,000 CDC to analyze lab samples, they were will enable FDA and USDA to protect calls from worried residents, each one told that no facilities were available the Nation’s food supply more effec- taking half an hour of time for per- due to the anthrax outbreak. Instead, tively. sonnel. South Dakota has had to sus- the Hawaii doctors had to send their We are grateful for the leadership of pend an investigation of serious food important samples to a lab in Puerto other Senators who have made signifi- poisoning outbreak to investigate ru- Rico for analysis. cant contributions to this legislation. mors of anthrax attacks, even though Dr. David Satcher, the Surgeon Gen- Senator BAYH and Senator EDWARDS no actual attack appears to have oc- eral, recently said that the country contributed important proposals on curred. The Georgia Health Depart- ‘‘should be ashamed of the condition of providing block grants to States, so ment has spent 3,000 person-hours just the laboratories of the CDC.’’ These that each State will be able to increase in 1 week on anthrax. vital national resources, he said, were its preparedness. Their proposals en- Hospitals across the country have without power for 15 hours during the sure that each state will receive at immediate needs. According to the early days of the anthrax outbreak. least a minimum level of funding. American Public Health Association, Computers are covered in plastic to We are also grateful for the contribu- hospitals are hard-pressed even during protect them from leaky roofs, and ter- tions that many of our distinguished a heavy flu season, and could not cope mites have chewed holes through lab- colleagues have made to meet the spe- with a lethal contagious disease like oratory floors. cial needs of children. Senator DODD, smallpox. Dr. Satcher is right to call this prob- Senator COLLINS, Senator CLINTON, The Bioterrorism Preparedness Act lem a national disgrace. We cannot Senator DEWINE and Senator MURRAY we are proposing will address these de- continue to expect the CDC to do a have emphasized the crucial needs of ficiencies. It provides new resources for first class job, if we provide only third- children in any plan to deal with bio- bioterrorism preparedness to the rate facilities. terrorism. The legislation includes sig- States under a formula that guarantees Clearly, our legislation is an impor- nificant initiatives to provide for the help to each State. These resources tant downpayment on preparedness. special needs of children and other vul- will be available to improve hospital But we must make sure that our com- nerable populations. readiness, equip emergency personnel, mitment to achieving full readiness is The events of recent weeks have also enhance State planning, and strength- sustained in the weeks and months to shown the importance of effective com- en the ability of public health agencies come. munication with the public. Our legis- to detect and contain dangerous dis- Since September 11, the American lation incorporates proposals offered ease outbreaks. people have supported our commitment by several of our colleagues on improv- The need is great at the State and of billions of dollars and thousands of ing communication. Senator CARNAHAN local level, but gaps need to be ad- troops to battle terrorism abroad. But has recognized the importance of the dressed at the Federal level too. Americans also want to be safe at internet in providing information to So far, we have had only a handful of home. We have an obligation to every the public. The legislation includes the patients diagnosed with anthrax, but American that we will do no less to provisions of her legislation to estab- our resources have been stretched to protect them against terrorism at lish the official Federal internet site the breaking point. We can’t afford fur- home than we do to fight terrorism on bioterrorism, to help inform the ther delays in meeting these critical abroad. public. needs. Federal stockpiles of antibiotics, Senator MIKULSKI also contributed Ft. Detrick, one of our two national vaccines, and other medical supplies provisions on improving communica- reference laboratories, processed over are an essential part of the national re- tion with the public. A high-level, blue- 19,000 samples after the attacks began, sponse. We have a strategic petroleum ribbon task force can provide vitally and they are already stretched to the reserve to safeguard our energy supply needed insights on how best to provide limit. in times of crisis. We need a strategic information to the public. Senator MI- The story was the same at CDC. Usu- pharmaceutical reserve as well, to en- KULSKI also recommended ways to en- ally, a few dozen CDC experts respond sure that we have the medicines and sure that states have coordinated plans to a disease outbreak. But CDC as- vaccines stockpiled to respond to bio- for communicating information about signed nearly 500 specialists to the an- terrorist attacks. Our legislation es- bioterrorism and other emergencies to thrax attacks. One out of eight em- tablishes this reserve, and authorizes the public.

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00132 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S13905 The Centers for Disease Control and securing the necessary funding. With seeks a seizure order if such food is be- Prevention have a leading role in re- the passage of the latest appropriations lieved to present a threat of serious ad- sponding to bioterrorism. Senator bills, we have secured well over $2.5 bil- verse health consequences or death to CLELAND has been an effective and lion for bioterrorism activities in addi- humans or animals. The FDA may also skillful advocate for the needs of the tion to those provided for debar a person who engages in a pat- CDC. Our legislation today incor- agroterrorism. I am also pleased with tern of seeking to import such food. porates many of the proposals in his the level of funding for State and local This important legislation also in- legislation on public health authori- preparedness and response activities— cludes several measures to help safe- ties. at least $1 billion—which is one of my guard the nation’s agriculture industry Hospitals are also one of the keys to top priorities. from the threats of bioterrorism. To- an effective response to bioterrorism. However, our efforts cannot end when ward this end, it contains a series of We must do more to strengthen the the funding is secured. We must pro- grants and incentives to help encour- ability of the Nation’s hospitals to vide greater guidance and authorities age the development of vaccines and cope with such attacks. Senator through an authorization bill, which is antidotes to protect the nation’s food CORZINE has proposed to strengthen why final passage of a bioterrorism au- supply, livestock, or crops, as well as designated hospitals to serve as re- thorization bill is equally important. preventing crop and livestock diseases gional resources for bioterrorism pre- Both the House and the Senate have form finding their way to our fields and paredness. I commend him for his signaled the need for increased author- feedlots. thoughtful proposals, which we have ization with the passage of the Tauzin- It also authorizes emergency funding incorporated in the legislation. Dingell Public Health Security and to update and modernize USDA re- We must also ensure that we monitor Bioterrorism Response Act of 2001 and search facilities at the Plum Island dangerous biological agents that can be the Frist-Kennedy Bioterrorism Pre- Animal Disease Laboratory in New used for bioterrorism. There is a seri- paredness Act of 2001. We must work York, the National Animal Disease ous loophole in current regulations, together in conference to ensure final Center in Iowa, the Southwest Poultry and we are grateful for the proposals passage. Research Laboratory in Georgia, and offered by Senator DURBIN and Senator A variety of increased authorizations the Animal Disease Research Labora- FEINSTEIN to achieve more effective are necessary to protect our food sup- tory in Wyoming. Also, it funds train- control of these pathogens. ply, prevent agroterrorism, develop ap- ing and implements a rapid response In a biological threat or attack, men- propriate countermeasures, and ensure strategy through a consortium of uni- tal health care will be extremely im- appropriate State and local prepared- versities, the USDA, and agricultural portant. We are indebted to Senator ness and response. For example, in the industry groups. No one has worked harder on these WELLSTONE for his skillful and compas- Frist-Kennedy Bioterrorism Prepared- sionate advocacy for the needs of those ness Act of 2001, we have greatly ex- agricultural provisions than my col- with mental illnesses. In the event of a panded the ability to protect our Na- league Senator ROBERTS. I know he un- terrorist attack, thousands of persons tion’s food supply by increasing au- derstands deeply the threat that we face in these areas and has helped pro- would have mental health needs, and thorities for the Department of Agri- vide real leadership in pointing the our legislation includes key proposals culture and the Food and Drug Admin- way to solutions. by Senator WELLSTONE to meet these istration. Additionally, the Frist-Kennedy needs. We need to ensure that our food sup- ‘‘Bioterrorism Preparedness Act of Mobilizing the Nation’s pharma- ply is safe. With 57,000 establishments 2001’’ expands our nation’s stockpile of ceutical and biotech companies so that under its jurisdiction and only 700–800 smallpox vaccine and critical pharma- they can fully contribute to this effort food inspectors, including 175 import ceuticals and devices. The bill also ex- is also critical. Senator LEAHY, Sen- inspectors for more than 300 ports of pands research on biological agents and ator HATCH, Senator DEWINE, and Sen- entry, the Food and Drug Administra- toxins, as well as new treatments and ator KOHL made thoughtful contribu- tion (FDA) needs increased resources vaccines for such agents and toxins. tions to the antitrust provisions of the for inspections of imported food. Since the effectiveness of vaccines, bill, which will help encourage a help- Our legislation grants FDA needed drugs, and therapeutics for many bio- ful public-private partnership to com- authorities to ensure the safety of do- logical agents and toxins often may bat bioterrorism. mestic and imported food. It allows not ethically be tested in humans, this This legislation is urgent because the FDA to use qualified employees from crucial legislation ensures that the need to prepare for a bioterrorist at- other agencies and departments to help FDA will finalize by a date certain its tack is urgent. I urge my colleagues to conduct food inspections. Any domestic rule regarding the approval of new pri- approve this legislation, so that the or foreign facility that manufactures ority countermeasures on the basis of American people can have the protec- or processes food for use in the U.S. animal data. Priority countermeasures tion they need. must register with FDA. Importers will also be given expedited review by Mr. FRIST. Mr. President, I am must provide at least four hours notice the FDA. thankful to be able to come to the floor of the food, the country of origin, and Because of the limitations on a mar- today, along with many of my col- the amount of food to be imported. ket for vaccines for these agents and leagues, to announce the Senate pas- FDA’s authority is made more explicit toxins, our legislation gives the Sec- sage of the Frist-Kennedy Bioterrorism to prevent ‘‘port-shopping’’ by marking retary of HHS authority to enter into Preparedness Act of 2001. Over the past food shipments denied entry at one long-term contracts with sponsors to several weeks, we have been working in U.S. port to ensure such shipments do ‘‘guarantee’’ that the government will a bipartisan manner to address this not reappear at another U.S. port. purchase a certain quantity of a vac- critical issue, and I am grateful for the This bill also gives additional tools cine at a certain price. work of Senators GREGG, KENNEDY, and to FDA to ensure proper records are This legislation also provides a lim- others. Everyone has worked very hard maintained by those who manufacture, ited antitrust exemption to allow po- to get us to this point, and I will con- process, pack, transport, distribute, re- tential sponsors to discuss and agree tinue to work with them in conference ceive, hold or import food. The FDA’s upon how to develop, manufacture, and to ensure final passage of this crucial ability to inspect such records will produce new priority countermeasures, legislation. strengthen their ability to trace the including vaccines, and drugs. Federal I am also thankful for the work of source and chain of distribution of food Trade Commission and the Department my colleagues to ensure that there is and to determine the scope and cause of Justice approval of such agreements an appropriate level of funding for bio- of the adulteration or misbranding is required to ensure such agreements terrorism preparedness and response that presents a threat of serious ad- are not anti-competitive. I appreciate activities that will be available imme- verse health consequences or death to the work of Senator HATCH and his ad- diately. I commend Senators STEVENS, humans or animals. Importantly, the vice in crafting the antitrust language. BYRD, SPECTER, INOUYE, and ROBERTS bill also enables FDA to detain food for These FDA authorities and market and others for their strong support in a limited period of time while FDA incentives—which can only be provided

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00133 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S13906 CONGRESSIONAL RECORD — SENATE December 20, 2001 by additional authorizing legislation— cal attack, and that this response ap- input and advice regarding water safe- are critical to the rapid development of propriately deals with the special needs ty and how we should more adequately vaccines and other countermeasures. I of children and other vulnerable popu- protect our nation, Senators SESSIONS want to thank Senators HUTCHINSON lations. and SHELBY for their important input and COLLINS for their important work Almost half of all public health de- on the various training activities, and with this portion of the bill. partments serve jurisdictions whose Senator LIEBERMAN for his crucial Both the House and Senate bills also emergency response plans do not ad- input regarding our disease surveil- include protections, similar to those dress incidents of bioterrorism. Agen- lance and coordination infrastructure. currently provided to those who join cies have not determined a single list I look forward to continuing to work the National Guard, to help protect the of biological agents likely to be used in with all of the Senators and their staff. employment rights of medication vol- a biological attack, several agencies I must also commend Senator KEN- unteers within the National Disaster have not been consulted in crafting the NEDY again for his efforts. He has been Medical Response System (NDMS). The list or determining an overall emer- a true partner on this bill and the bills also extend necessary liability gency response plan, and agencies have Frist-Kennedy ‘‘Public Health Threats protections to those volunteers. Sen- developed programs to provide assist- and Emergencies Act of 2000,’’ which ator ENZI provided beneficial advice ance to state and local governments we signed into law last year. about how to craft this portion of the that are similar and potentially dupli- Finally, I want to thank my staff— legislation. cative. Allen Moore, Dean Rosen, Helen Rhee, Moreover, both bills contain addi- The Bioterrorism Preparedness Act Craig Burton, Allison Winnike, and tional measures to assist with the of 2001 establishes an Assistant Sec- Shana Christrup—as well as the staff of tracking and control of biological retary for Emergency Preparedness at other Senate offices for all of their ef- agents and toxins. With respect to the HHS to coordinate all functions with forts, including Vince Ventimiglin, control of biological agents and toxins, the Department relating to emergency Katy French and Steve Irizarry of Sen- the Secretary of Health and Human preparedness, including preparing for ator GREGG’s staff; David Nixon, David Services is required to review and up- and responding to biological threats or Bowen, David Dorsey, and Paul Kim of date a list of biological agents and tox- attacks. It also creates a federal inter- Senator KENNEDY’s staff; John ins that pose a severe threat to public departmental Working Group on Bio- Mashburn of Senator LOTT’s staff; health and safety and to enhance regu- terrorism that consolidates and Stacey Hughes of Senator NICHLES’ lations regarding the possession, use streamlines the functions of two exist- staff; Abby Kral of Senator DEWINE’s and transfer to such agents or toxins. ing working groups first established staff; Claire Bernard and Priscilla Han- Again, these needed protections will under the ‘‘Public Health Threats and ley of Senator COLLINS’ office; Kate not go into effect until we pass author- Emergencies Act of 2000.’’ Hull of Senator HUTCHINSON’s staff; izing language. Recent reports regarding the treat- Raissa Geary of Senator ENZI’s staff; Although the ‘‘Public Health Threats ment of children during the anthrax Laura O’Neill of Senator SESSION’s of- and Emergencies Act of 2000’’ estab- scare, including the cutaneous anthrax fice; Debra Barrett and Jim Fenton of lished basic grant programs to assist case in a 7 month old boy, have high- Senator DODD’s staff; and Bruce Artim with strengthening the public health lighted the need to more fully address and Patty DeLoatche of Senator infrastructure, the language was based the special needs of children when re- HATCH’s staff. Their tireless work has on the assumption that each year five sponding to bioterrorism attacks. been essential in assisting us in getting more states would receive enough Within the Frist-Kennedy ‘‘Bioter- this far. money to be prepared for a bioterrorist rorism Preparedness Act of 2001,’’ nu- Mr. LIEBERMAN. Mr. President, I attack. Given the recent set of events, merous provisions were added to spe- rise to discuss the Senate’s action this we cannot wait 10 more years for our cifically address this critical issue, evening on bioterrorism. Today, the public health infrastructure to be with the emphasis on streamlining the Senate has taken an important step to- strengthened. language so that the children’s health ward improving the Nation’s ability to We must put in place a mechanism to and welfare issues were considered in prepare for, and respond to, the threat ensure that every state has sufficient concert with the general provision of of bioterrorism by adopting legislation, funding to improve their public health services. These provisions include a authored by Senator KENNEDY and Sen- infrastructure so that they are able to specific reference that the vaccines, ator FRIST, and of which I am a cospon- respond to a potential biological at- therapies and medical supplies within sor. The Senate bill, S. 1765, recognizes tack. the stockpile appropriately address the that any meaningful improvement in I agree that we must provide re- health needs of children and other vul- this area must begin with improve- sources necessary to develop smallpox nerable populations; requiring the ments in the Nation’s public health and other needed vaccines, drugs, and Working Group to take into consider- system, a fact underscored by a series biologics to counter potential biologi- ation the special needs of children and of hearings conducted by the Com- cal agents. But it is even more impor- other vulnerable populations; estab- mittee on Governmental Affairs on bio- tant that we provide needed resources lishing the National Task Force on terrorism earlier this year. As a result to those who will be on the front-lines Children and Terrorism—an advisory of those hearings, I believe that there in responding to a potential attack. committee of child health experts on are several areas in which the Senate Hospitals and other medical facilities infectious disease, environmental bill could be further strengthened espe- must become better prepared to re- health, toxicology, and other relevant cially in terms of the way the Federal spond and to deal with the public professional disciplines—to offer advice Government’s efforts to combat bioter- health emergency after such an attack. to the Secretary; along with other cru- rorism are organized. In anticipation of And doctors, nurses, firefighters, po- cial additions. I want to thank Sen- Senate consideration, I prepared an lice, and emergency medical response ators DODD, DEWINE, COLLINS, and amendment to the original Kennedy/ personnel need better training and CLINTON for their assistance in crafting Frist bioterrorism bill, S. 1715, to ad- equipment to combat biological appropriate language to address the dress these concerns. However, given threats and provide needed treatment. special needs of children and other vul- Senate’s interest in acting on this im- Therefore, the two new grant pro- nerable populations. portant measure before adjournment, I grams included in the ‘‘Bioterrorism Along with my colleagues, I am ap- agreed to defer offering this amend- Preparedness Act’’—the State Bioter- preciative of the steps we have taken ment at this time. I do, however, be- rorism grant program and the Des- thus far to ensure that we are prepared lieve that the underlying issues need to ignated Bioterrorism Response Medical to respond to biological threats or at- be addressed Center program—are essential. tacks, and I look forward to continuing Specifically, I would like to see addi- Finally, our legislation would also to work with them to ensure final pas- tional attention given to bioterrorism ensure that we enhance coordination sage of bioterrorism authorization leg- within the Centers for Disease Control among local, state and federal agencies islation. I want to thank Senator JEF- and Prevention, CDC. The underlying responsible for responding to a biologi- FORDS and Senator BOB SMITH for their bill recognizes the need to strengthen

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00134 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S13907 CDC bioterrorism role. Currently, agency coordination through the cre- emergency preparedness plans and systems CDC’s bioterrorism activities are cur- ation of an interagency working group. to identify and respond to natural disease rently coordinated by the Bioterrorism The amendment would specifically outbreaks or bioterrorist attacks, including Preparedness and Response Program the establishment of performance measures. charge the group with addressing inter- ‘‘(c) EVALUATION GROUP AND EXERCISES.— within the National Center for Infec- operability of IT and communication ‘‘(1) IN GENERAL.—The Assistant Secretary tious Diseases. While many of the systems and give the Secretary of HHS for Emergency Preparedness shall establish agents of concern are infectious dis- authority to provide technical and fi- an evaluation group, to be composed of at eases, many are not, including toxins nancial support to resolve such prob- least 10 individuals who are experts on public and chemical agents. Even more to the lems. health preparedness and bioterrorism from point, many of the elements of the CDC The amendment would require the both within and without the federal govern- bioterrorism program actually reside ment, to test and evaluate the capabilities Secretary of HHS to contract with the and vulnerabilities of the national health in other Programs and Centers. The Institute of Medicine to analyze the re- and emergency preparedness plans and sys- pharmaceutical stockpile program re- sponse of the public health system of tems to identify and respond to natural dis- sides within the National Center of En- the recent anthrax attacks and provide ease outbreaks or bioterrorist attacks on a vironmental Health. The Health Alert a ‘‘lessons-learned’’ report to help continuous basis, including the conduct of Network is in the Public Health Prac- guide improvements at the federal, local, regional, and national-scale exercises. tices Program. Surveillance and detec- state, and local level. ‘‘(2) ANNUAL REPORT.—At least annually, tion activities are in the Epidemiology Finally, I would note that the House the evaluation group established under para- graph (1) shall prepare and submit to the Program Office. Coordination of these bill also recognizes the need to improve Secretary and to the Committee on Health, activities, competition for resources, our public health surveillance and Education, Labor and Pensions, the Com- and line authority is a major problem. communications systems. The House mittee on Governmental Affairs, and the The importance and unique nature of bill also seeks to incorporate perform- Committee on Appropriations of the Senate the bioterrorism mission also requires ance measures as part of expanded bio- and the Committee on Energy and Com- creation of a separate ‘‘intellectual’’ terrorism program in a manner similar merce, Committee on Government Reform, center. to what I propose. Now that Senate has and the Committee on Appropriations of the The underlying bill also recognizes acted, I look forward to working with House of Representatives a report con- both the importance of expanding the cerning the results of the tests and evalua- the conferees to ensure that our Nation tions conducted under paragraph (1). role of HHS within the Government to is prepared for meeting this new ‘‘(d) PERFORMANCE MEASURES.— provide leadership on bioterrorism pre- threat. ‘‘(1) IN GENERAL.—Not later than 1 year paredness and response. In addition, it I ask unanimous consent that the after the date of enactment of this title, the recognizes the need to coordinate such amendment that I was prepared to sub- Assistant Secretary for Emergency Pre- activities within the many parts of mit, be printed in the RECORD. paredness, in cooperation with the evalua- HHS, including FDA, CDC, OEP, NIH, There being no objection, the amend- tion group established under subsection etc. The amendment would codify basic ment was ordered to be printed in the (c)(1), shall establish a system of perform- ance measures to evaluate responses to bio- RECORD, as follows: government management responsibil- terrorism threats and vulnerabilities. Such ities and tools for the new Assistant AMENDMENT NO.— system shall establish benchmarks and Secretary position including agency On page 11, between lines 19 and 20, insert evaluate the corresponding roles and per- performance measures, performance the following: formances of agencies with responsibilities evaluation capability, technology ‘‘(d) NATIONAL CENTER FOR BIOTER- for bioterrorism responses in Federal, State, verification. RORISM.—There is established within the tribal, and local governments. Detection is key to responding to Centers for Disease Control and Prevention a ‘‘(2) REPORT.—Not later than 30 days after bioterrorism attacks. Although health National Center for Bioterrorism, to develop, the date on which the system is established manage, and provide scientific and medical agencies have surveillance systems, under paragraph (1), the Assistant Secretary capabilities to prepare for, and respond to, for Emergency Preparedness shall prepare they do not rely upon standard meth- bioterrorism attacks, including— and submit to the Secretary, and to the ap- odologies or real-time data collection. ‘‘(1) analyzing and applying intelligence propriate committees of Congress, a report Though some States and localities and threat assessment information to the concerning the performance measures and have also begun to incorporate preparation, development and stockpile of evaluations developed as a part of the sys- ‘‘syndromic’’ indicators, this practice vaccines, antibiotics and other pharma- tem. is not widespread or standardized and ceuticals, medical training, and other prepa- ‘‘(3) REVISIONS.—The Assistant Secretary they are not integrated into other ration and response capabilities; for Emergency Preparedness, in cooperation ‘‘(2) detecting biological and chemical health data systems. CDC is working with the Evaluation Group, shall periodi- agents, detecting and conducting surveil- cally review and revise the performance on development of a new internet-based lance, and making a diagnosis of related dis- measures developed under paragraph (1) and system, the National Electronic Dis- eases; promptly report any revisions to the Com- ease Surveillance System, NEDSS, but ‘‘(3) disease investigation and mitigation; mittee on Health, Education, Labor and Pen- its deployment is many years in the fu- and sions, the Committee on Governmental Af- ture. The amendment establishes an ‘‘(4) the provision of guidance to Federal, fairs, and the Committee on Appropriations accelerated deployment schedule, in- State, tribal, and local officials, concerning of the Senate and the Committee on Energy cluding the development of data collec- preparation for and response to bioterrorism and Commerce, the Committee on Govern- attacks.’’. tion and reporting protocols, in con- ment Reform, and the Committee on Appro- On page 13, strike line 3. priations of the House of Representatives. sultation with state and local health On page 13, line 7, strike the period and in- ‘‘(e) TECHNOLOGY VERIFICATION.—The As- agencies. sert a semicolon. sistant Secretary for Emergency Prepared- CDC has initiated an internet-based On page 13, between lines 7 and 8, insert ness shall establish a technology verification Health Alert Network to provide real- the following: group from among relevant agencies of the time information to state and local ‘‘(3) coordinate the standards and inter- Federal Government, including the Depart- health officials. Unfortunately, a num- operability of information technology and ment of Defense, the Centers for Disease communications systems within the Depart- ber of States are not yet included in Control and Prevention, the Federal labora- ment of Health and Human Services and tories, and the National Institute for Stand- the network and very few county and among Federal, State, tribal, and local ards and Technology. Such group, in con- municipal health departments are in- health officials and health service providers sultation with appropriate representatives of cluded. The amendment would estab- relevant to emergency preparedness and bio- the private sector, shall— lish an accelerated schedule for deploy- logical threats or attacks; ‘‘(1) evaluate, test, and verify the perform- ment. ‘‘(4) develop and maintain advanced health ance of promising technologies for reducing Lack of interoperability of commu- surveillance systems to provide early warn- and responding to bioterrorism threats; nication systems, and more recently in ing of natural disease outbreaks or bioter- ‘‘(2) make recommendations to relevant IT systems, is a long-standing problem rorist attacks to Federal, State, tribal, and Federal, State, and local agencies for the ac- local health officials and to aid response quisition of successful technologies that can in emergency response among federal management; and significantly reduce bioterrorism threats; agencies, much less between federal ‘‘(5) develop and maintain a program to and and state agencies. The underlying bill continuously evaluate the capabilities and ‘‘(3) prepare and submit to the Committee recognizes the need for better inter- vulnerabilities of the national health and on Health, Education, Labor and Pensions,

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00135 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S13908 CONGRESSIONAL RECORD — SENATE December 20, 2001 the Committee on Governmental Affairs, and ‘‘(2) include data on the medical nature of state of preparedness for other biological and the Committee on Appropriations of the Sen- the emergency, recognition of disease symp- chemical threats, including the rec- ate and the Committee on Energy and Com- toms, the possible scope of infections, rec- ommendations described in paragraph (2). merce, the Committee on Government Re- ommended treatments, the sources and (2) COMPLETION AND REPORT.—The inquiry form, and the Committee on Appropriations availability of appropriate medicines, and conducted under paragraph (1) shall be com- of the House of Representatives, a report such other data as may be recommended by pleted not later than 270 days after the date concerning the recommendations made the Secretary. on which the contract under such paragraph under paragraph (2). ‘‘(c) IMPLEMENTATION OBJECTIVES.—Not is awarded. Not later than 30 days after the On page 17, between lines 8 and 9, insert later than 180 days after the date of enact- date on which such inquiry is completed, the the following: ment of this title, the Secretary shall ensure Secretary of Health and Human Services ‘‘SEC. 2815. NATIONAL HEALTH SURVEILLANCE that all State public health departments are shall submit to the appropriate committees SYSTEM. connected to the network established under of Congress a report concerning the results ‘‘(a) ESTABLISHMENT.— subsection (a). Not later than 1 year after of such inquiry, including the recommenda- ‘‘(1) IN GENERAL.—The Secretary, acting such date of enactment, the Secretary shall tions of the Institute of Medicine concerning through the Assistant Secretary for Emer- ensure that all municipal public health agen- the preparedness of the United States for fu- gency Preparedness, shall establish a Na- cies in municipalities with populations larg- ture bioterrorism attacks (including rec- tional Health Surveillance System that uti- er than 250,000 persons, as well as all county ommendations for both occupational and lizes computerized information systems and and tribal public health agencies, are in- public safety). the Internet to provide early warning of nat- cluded in the network. Mr. BIDEN. Mr. President, the final ural disease outbreaks or bioterrorist at- ‘‘(d) ASSISTANCE TO STATE AND LOCAL HEALTH AGENCIES.—The Secretary may pro- day of a legislative session often brings tacks to Federal, State, tribal, and local a flurry of activity as bills get un- health officials and assist such officials in vide technical, material, and financial as- response management. sistance to State and local public health jammed, compromises emerge, and the ‘‘(2) USE OF EXISTING SYSTEMS.—Such sys- agencies, health providers, and other entities Senate produces progress on important tem, to the maximum extent feasible, shall that the Assistant Secretary for Emergency issues. Depending upon one’s perspec- utilize existing health care data systems of Preparedness recommends for participation tive, these last-minute actions include primary care providers, health insurance and in the network. both good things and bad things. Nev- ‘‘(e) REPORTING REQUIREMENT.—The Sec- reimbursement programs, and other sources ertheless, I think we all can agree that of health information including those main- retary shall prepare and submit to the appro- priate committees of Congress reports de- today’s passage of the Bioterrorism tained by Federal, State, tribal and local Preparedness Act is a real accomplish- health agencies. scribing the progress made by the Secretary ‘‘(b) DATA AND INFORMATION STANDARDS.— in implementing the network described in ment in improving America’s home- Not later than 12 months after the date of subsection (a). Such reports shall be sub- land defense. This bill authorizes $3.25 enactment of this title, the Assistant Sec- mitted— billion for comprehensive measures to retary for Emergency Preparedness, in co- ‘‘(1) not later than 1 year after the date of take the first step in improving our na- operation with medical providers and State enactment of this title; tion’s capability, in the event of a bio- ‘‘(2) at such times as the Secretary deter- and local public health officials, shall iden- logical weapons attack, to respond tify the nature and manner of health surveil- mines to be appropriate after the completion of each phase of the implementation objec- quickly, contain the attack, and treat lance data to be compiled for purposes of the victims. I want to applaud Sen- subsection (a) and shall establish standards tives described in subsection (c); and and procedures to ensure the standardization ‘‘(3) annually thereafter as determined ap- ators KENNEDY and FRIST for coming and interoperability of such data. propriate by Congress. together in a bipartisan spirit and dis- UTHORIZATION OF PPROPRIATIONS ‘‘(c) COLLECTION AND ANALYSIS CAPA- ‘‘(f) A A .— playing real leadership in drafting this There is authorized to be appropriated BILITY.—As soon as practicable, but not later bill. $100,000,000 for fiscal year 2002 to carry out than 36 months after the date of enactment When Sam Nunn testified in early of this title, the Assistant Secretary for this section.’’. On page 19, line 3, strike ‘‘Section’’ and in- September before the Foreign Rela- Emergency Preparedness shall establish the sert ‘‘(a) IN GENERAL.—Section’’. mechanisms and information systems nec- tions Committee on the threat posed On page 21, line 8, strike ‘‘and’’. essary for the collection and rapid real time by biological weapons, he was very On page 21, line 11, strike the period and clear—bioterrorism is a direct threat evaluation of data transmitted for purposes insert ‘‘; and’’. of subsection (a) concerning public health On page 21, between lines 11 and 12, insert to the national security of the United and bioterrorist emergencies, and provide the following: States and we need to invest the nec- such evaluations on at least a daily basis to ‘‘(11) coordinate and standardize data and essary resources to counter this threat Federal, State, tribal, and local public communication systems and requirements to accordingly. As troubling as the recent health and emergency authorities. ensure the interoperability and seamless spate of anthrax by mail attacks was, ‘‘(d) ASSISTANCE TO STATE AND LOCAL data transmission necessary to prepare for, we were very fortunate that this was a HEALTH AGENCIES AND HEALTH CARE PRO- identify, assess, and respond to health emer- VIDERS.—The Assistant Secretary for Emer- comparatively small-scale attack. gencies and bioterrorist attacks, including Eighteen Americans contracted inhala- gency Preparedness may provide technical, the National Health Surveillance System material, and financial assistance to State, and the National Health Alert Network. tion or cutaneous anthrax; unfortu- tribal, and local public health agencies, On page 23, between lines 16 and 17, insert nately, five individuals died. The next health providers, and other entities that the the following: time a biological weapons attack oc- Assistant Secretary recommends participate ‘‘(c) TECHNICAL ASSISTANCE AND GRANTS TO curs, we may not be so fortunate in in the surveillance system developed under ENSURE INTEROPERABILITY.— dealing with a small number of victims this section. ‘‘(1) IN GENERAL.—The Secretary, in con- ‘‘(e) AUTHORIZATION OF APPROPRIATIONS.— who emerge over a period of weeks and sultation with the working group, may pro- months. Instead, we may face thou- There is authorized to be appropriated vide technical and financial assistance to a $120,000,000 for fiscal year 2002 to carry out public or private entity to ensure the inter- sands of victims flooding local emer- this section. operability and seamless transmission of gency rooms and overwhelming our ‘‘SEC. 2816. NATIONAL HEALTH ALERT NETWORK. data and communications deemed necessary hospitals in a matter of hours. ‘‘(a) IN GENERAL.—The Secretary, acting to prepare for, identify, assess, or respond to Let’s be real here—the anthrax at- through the Assistant Secretary for Emer- a health emergency or bioterrorism attack. tacks, as small-scale as they may have gency Preparedness, shall establish and ‘‘(2) AUTHORIZATION OF APPROPRIATIONS.— been, have greatly stressed our na- maintain a National Health Alert Network, There is authorized to be appropriated that utilizes, to the maximum extent prac- $25,000,000 for fiscal year 2002 to carry out tional public health infrastructure. tical, advanced information and Internet this subsection.’’. One out of eight Centers for Disease technology. (b) FORMAL INQUIRY INTO ANTHRAX ATTACKS Control employees at their head- ‘‘(b) REQUIREMENTS.—The network estab- AND BIOTERRORISM PREPAREDNESS.— quarters in Atlanta is working on the lished under subsection (a) shall— (1) IN GENERAL.—Not later than 45 days current anthrax outbreak, forcing the ‘‘(1) be capable of the timely transmission after the date of enactment of this Act, the CDC to sideline other essential core ac- of emergency medical information and infor- Secretary of Health and Human Services tivities for the time being. Folks, what mation identifying potential and ongoing shall enter into a contract with the Institute we have just been through is small po- public health and bioterrorism emergencies of Medicine of the National Academy of to all appropriate Federal health authorities, Sciences for the conduct of a formal inde- tatoes compared to what we poten- to all State and local public health authori- pendent inquiry into the response of the tially will face. Plain and simple, we ties, and to hospitals and other medical prac- United States to anthrax attacks throughout can’t afford to be so under-prepared in titioners in affected areas; and the United States Postal System and the the future.

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00136 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S13909 Among Sam Nunn’s recommenda- The World Health Organization I was greatly disappointed, therefore, tions for countering biological ter- (WHO) established a formal worldwide when the White House expressed resist- rorism, he declared, ‘‘We need to recog- network last year, called the Global ance to the language Senator HELMS nize the central role of public health Alert and Response Network, to mon- and I had worked out and sought to and medicine in this effort and engage itor and track infectious disease out- drop it from the final bill. While voic- these professionals fully as partners on breaks in every region of the world. ing support for our ideas, the White the national security team.’’ There are The WHO has done an impressive job so House believed that the Bioterrorism many good things in this bill, ranging far working on a shoestring budget. Preparedness Act should only focus on from the expansion of the National But this global network is only as good domestic defenses against bioterrorism Pharmaceutical Stockpile to efforts to as its components—individual nations. and was not the appropriate vehicle for enhance food safety, but I am espe- Many developing nations simply do not the international programs we pro- cially pleased that the Bioterrorism possess the personnel, laboratory posed. Preparedness Act provides direct equipment or public health infrastruc- I strongly disagreed. It doesn’t make grants to improve the public health in- ture to track disease patterns and de- sense to draw artificial boundaries be- frastructure at the state and local tect traditional and emerging patho- tween ‘‘domestic’’ and ‘‘international’’ level. Our doctors, nurses, emergency gens. In fact, these nations often just responses to bioterrorism. I have al- medical technicians, and other public seek to keep up in treating those who ready pointed out that pathogens delib- health personnel are our eyes and ears have already fallen ill. erately released in an attack anywhere on the ground for detecting a biological Doctors and nurses in many devel- in the world can quickly spread to the weapons attack. We can’t afford not to oping countries only treat a small frac- United States if we are unable to con- do everything we can to make sure tion of the patients who may be ill tain the epidemic at its source. The they have the necessary tools and re- with a specific infectious disease—in National Intelligence Council has con- sources in containing any BW attack. effect, they are only witnessing the tip cluded that infectious diseases are a This bill goes a long way toward ful- of a potentially much larger iceberg. real threat to U.S. national security. filling that core commitment. According to the National Intelligence To ignore the international arena in So I am very pleased the Senate Council, governments in developing favor of domestic solutions alone just today has passed the Bioterrorism Pre- countries in Africa and Asia have es- doesn’t make any sense. paredness Act and I look forward to a tablished rudimentary or no systems at Therefore, when the Bioterrorism quick reconciliation of this bill with all for disease surveillance, response or Preparedness Act was introduced in counterpart House legislation early prevention. For example, in 1994, an November without any provisions to next year. When this bill was intro- outbreak of plague occurred in India, enhance global disease surveillance, I duced, I had expressed my serious con- resulting in 56 deaths and billions of announced my intention to introduce cern that it was ignoring the inter- dollars of economic damage as trade an amendment to ensure this bill national aspects to any effective re- and travel with India ground to a halt. would enhance the capabilities of de- sponse to potential bioterrorism. As The plague outbreak was so severe be- veloping nations to track, diagnose, Chairman of the Foreign Relations cause Indian authorities did not catch and contain disease outbreaks result- Committee, I know that we cannot ad- the epidemic in its early stages. Au- ing from both BW attacks and natu- dress the threat of bioterrorism within thorities had ignored or failed to re- rally occurring epidemics. This week, the borders of the United States alone. spond to routine complaints a flea in- the Senate leadership chose to move A biological weapon attack need not festation, a sure warning signal for this bill under an unanimous consent originate in the United States to pose plague. procedure. I initially objected because Owing to the lack of resources, devel- a threat to our nation. A dangerous I strongly believed the Senate should oping nations are the weak spots in pathogen deliberately released any- have an opportunity, at the very least, global disease monitoring and surveil- where in the world can quickly spread lance. Without shoring up these na- to vote on an amendment to incor- to the United States in a matter of tions’ capabilities to detect and con- porate global disease surveillance ac- days, if not hours. The scope and fre- tain disease outbreaks, we are leaving tivities in the Bioterrorism Prepared- quency of international trade, travel, the entire world vulnerable to either a ness Act. But I understand the urgency and migration patterns offer unlimited deliberate biological weapons attack or of the moment. There is no greater vul- opportunities for pathogens to spread an especially virulent naturally occur- nerability in our nation’s defenses than across national borders and even to ring epidemic. against the threat of bioterrorism and move from one continent to another. For all of these reasons, Senator it is the responsibility of Congress to Therefore, I continue to believe we HELMS and I had worked together in act quickly to correct this deficiency. need to view all infectious disease proposing language to authorize $150 Therefore, I have chosen, for now, to epidemics, wherever they occur, as a million in FY 1001 and FY 2003 to cease my effort to include this amend- potential threat to all nations. strengthen the capabilities of indi- ment in this bill. Office of Management It is for this reason that, when the vidual nations in the developing world and Budget Director Mitch Daniels Bioterrorism Preparedness Act was to detect, diagnose, and contain infec- today sent me a letter where he ex- being drafted, Senator HELMS, the dis- tious disease epidemics. The proposed presses appreciation for the proposals tinguished Ranking Member on the title would have helped train entry- contained in this amendment and rec- Foreign Relations Committee, and I level public health professionals from ognizes that ‘‘International public had worked together in seeking to in- developing countries and provide health has a critical role to play in sert provisions in this bill to enhance grants for the acquisition of modern protecting the United States and our global disease monitoring and surveil- laboratory and communications equip- global partners’’. Furthermore, Daniels lance. With Senator KENNEDY’s strong ment essential to any effective disease highlights the Administration’s inten- backing, we had sought to ensure the surveillance network. Upon first tion to engage in discussions with my- full availability of information (i.e., glance, $150 million is chump change in self and other interested colleagues on disease characteristics, pathogen a bill that authorizes more than $3 bil- these proposals when the Congress re- strains, transmission patterns) on in- lion. But I have been assured by public convenes in January. I ask for unani- fectious epidemics overseas that may health experts that $150 million alone mous consent that the full text of this provide clues indicating possible illegal can go a long ways in making sure that letter be included at the end of this biological weapons use or research. developing countries the basic disease statement in the CONGRESSIONAL Even if an infectious disease outbreak surveillance and monitoring capabili- RECORD. occurs naturally, improved monitoring ties to effectively contribute to the I expect the Administration to follow and surveillance can help contain the WHO’s global network. The bottom line up on this letter by planning and budg- epidemic and tip off scientists and pub- is that these provisions would have of- eting for improved global pathogen sur- lic health professionals to new disease fered an inexpensive, common-sense so- veillance in Fiscal Year 2003. The need that may be used as biological weapons lution to a problem of global propor- is urgent and our ability to lessen the in the future. tions. threat posed by bioterrorism is real.

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00137 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S13910 CONGRESSIONAL RECORD — SENATE December 20, 2001 The steps we take to combat bioter- Mr. FRIST. I thank the gentleman that the FDA has the authority to rorism overseas can keep diseases from from Utah for his comments. On behalf promptly promulgate a final rule in reaching our shores and will give us of myself, Senator KENNEDY, and Sen- this area. I also believe that the Sec- vital early warning of new diseases and ator GREGG, I also want to thank him retary of Health and Human Services strains for which we must prepare. for his significant contributions to the should have clear authority to Let me again salute today’s passage legislation, and for his support for this prioritize the distribution of scarce by the Senate of the Bioterrorism Pre- measure. countermeasures under certain cir- paredness Act. While it does not in- Mr. HATCH. I understand that there cumstances. Finally, I believe there is clude every essential proposal in en- are efforts currently underway to pass great value in considering the inclu- hancing our nation’s bioterrorism de- this legislation by unanimous consent sion in a final bill of intermediate en- fenses, it still accomplishes a great before the Senate adjourns for the forcement authority with respect to deal. If this bill becomes law, which I year, and I strongly support those ef- the unlawful shipment, transport, pos- have no reason to doubt, it is my hope forts. Because we are trying to clear session, or other use of biological that the Congress will follow up next this measure under a tight time frame, agents or toxins. year with the necessary appropriations I also understand that there will not be Mr. FRIST. I agree with Senator to carry out the programs authorized an opportunity to make modifications GREGG. The Senator from Utah can be in this bill. to the text of the legislation prior to assured that these issues will receive Let me close with an excerpt of testi- final Senate passage. my active support during conference mony from the Foreign Relations Com- Mr. KENNEDY. That is correct. consideration of this measure. mittee hearing on bioterrorism in Sep- Mr. FRIST. My friend from Utah is Mr. KENNEDY. I also agree with tember from Dr. D.A. Henderson, the correct. Senator GREGG. I thank the Senator man who spearheaded the international Mr. HATCH. Before Congress passes a from Utah for bringing these important campaign to eradicate smallpox in the final anti-bioterrorism law, I believe issues to the attention of the Senate. I 1970’s. Today, he is the director of the there are several important issues that will look forward to working with him newly-formed Office of Emergency Pre- must be addressed. Because there will in resolving these issues during the paredness in the Department of Health not be an opportunity to address these conference. and Human Services, which has the matters before the Senate passes anti- Mr. HATCH. I also request that my mandate to help organize the federal bioterrorism legislation, I strongly be- colleagues support the inclusion of pro- government’s response to future bioter- lieve that the House-Senate conference visions to establish an animal ter- rorism incident clearinghouse. rorist attacks. Dr. Henderson was very committee should: (1) permit the ap- Mr. GREGG. I will actively support clear on the value of global disease sur- proval of priority countermeasures solely based on data from animal stud- this provision. veillance: ‘‘In cooperation with the Mr. FRIST. I concur with my col- ies; (2) clarify the Health and Human WHO and other countries, we need to league from New Hampshire. strengthen greatly our intelligence Service Secretary’s role and authority Mr. KENNEDY. I also believe that gathering capability. A focus on inter- in distribution, and use of, priority this issue should be given serious con- national surveillance and on scientist- countermeasures and other medical re- sideration. to-scientist communication will be sponses to bioterrorist attacks; and (3) Mr. HATCH. I thank my colleagues necessary . . .’’ provide additional enforcement provi- for their comments. I look forward to There being no objection, the letter sions with respect to prohibiting the working with them during the con- was ordered to be printed in the unlawful shipment, transportation, and ference to ensure that this important RECORD, as follows: possession of biological agents and tox- legislation is passed by Congress so EXECUTIVE OFFICE OF THE PRESI- ins. that our nation can be better prepared DENT, OFFICE OF MANAGEMENT These issues have not been suffi- to meet the threat of bioterrorism and AND BUDGET, ciently addressed in the legislation be- public health emergencies. Washington, DC., December 20, 2001. fore us. We must all recognize that this WATER SUPPLY SECURITY Hon. JOSEPH R. BIDEN, Jr., language the Senate is about to adopt U.S. Senate, Mr. JEFFORDS. Mr. President, and has not been the subject of any con- my distinguished colleagues, I am Washington, DC. gressional committee mark-up. While DEAR SENATOR BIDEN: I very much appre- pleased that we are moving so quickly ciate the important proposals contained the extraordinary situation con- on legislation to combat bioterrorism— within Title VI of the Kennedy-Frist bioter- fronting our nation regarding biologi- this is certainly a timely issue. rorism bill. International public health has a cal attacks requires expeditious action, I would like to engage my colleagues critical role to play in protecting the United we also must ensure that there is flexi- in a colloquy to clarify our commit- States and our global partners from the bility in the conference committee to ment to another important issue—the threat of infectious disease. guarantee that novel and, frankly, security of our Nation’s water supply. As you are aware, the Administration sup- evolving issues, concerning bioter- ports the version of the Kennedy bill that At the end of October of this year, I does not include Title VI. These issues are rorism are adequately addressed. This was joined by the Ranking Member of critical, however, and I would very much is what happened during the House- the Environment and Public Works like to resolve them outside the context of Senate conference of the U.S.A. Patriot Committee in introducing S. 1593 and the current bioterrorism bill. Your willing- Act and, with diligence, we can dupli- S. 1608. S. 1593 authorizes the Adminis- ness to discuss these matters in the future is cate that success again. trator of the Environmental Protection critical to the movement of this important Mr. GREGG. I agree that the con- Agency to establish a grant program to piece of legislation and I would welcome the ference committee should address each support research projects on critical opportunity to engage in these discussions at of the issues that you have raised. I the beginning of the next session. infrastructure protection for water Thank you very much for your consider- will actively work to ensure that these supply systems. S. 1608 establishes a ation of this request. provisions are included. program to provide grants to drinking Sincerely, Mr. KENNEDY. I concur with my col- water and wastewater facilities to MITCHELL E. DANIELS, Jr., league from New Hampshire. meet immediate security needs. Director. Mr. FRIST. I also agree that these I understand that the Senator from ADDITIONAL BIOTERRORISM PREPAREDNESS important issues should be addressed Tennessee, the Senator from Massachu- ISSUES during a conference with the House of setts and the Senator from New Hamp- Mr. HATCH. I would like to commend Representatives and we will call on the shire support the modified provisions my colleagues, Senators FIRST, KEN- Senator from Utah to participate in of these bills. Is that correct? NEDY, and GREGG for their work in discussions concerning these issues. Mr. FRIST. That is correct. crafting the bipartisan Bioterrorism Mr. GREGG. I agree with my col- Mr. KENNEDY. Yes, that is correct. Preparedness Act. The Act takes a sig- league from Utah that additional speci- Mr. GREGG. Yes, that is correct be- nificant step forward in providing the ficity with respect to the language on cause in the interest of time, we re un- necessary tools to combat future acts animal trials would be desirable, par- able to change the bill prior to con- of bioterrorism. ticularly with respect to clarifying ference.

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00138 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S13911 Mr. SMITH of New Hampshire. I too amendment, request a conference with mous commitment of time and energy would like to thank Senator FRIST, the House on the disagreeing votes of by the Senator from Connecticut, Mr. Senator KENNEDY and Senator GREGG the two Houses, and that the Chair be DODD, the Chairman of the Banking for agreeing to work with us to ensure authorized to appoint conferees on the Committee, Mr. SARBANES, the Chair- these two proposals are included in the part of the Senate, without intervening man of the Commerce Committee, Mr. bioterrorism proposal. I regret that action or debate. HOLLINGS, the senior Senator from New with the end of session quickly ap- The PRESIDING OFFICER. Without York, Mr. SCHUMER, the junior Senator proaching, there is not time to incor- objection, it is so ordered. from New Jersey, Mr. CORZINE, and porate these provisions into the under- The amendment (No. 2692) was agreed many others from both sides of the lying bill. As we all recognized in our to. aisle. support for these proposals, since the (The text of the amendment is print- While we were unable to reach agree- September 11th attacks, Americans ed in today’s RECORD under ‘‘Amend- ment on every point, the proposal in- throughout the country have become ments Submitted and Proposed.’’) corporated line-by-line suggestions by concerned about the security of our na- Mr. LOTT. Mr. President, I thank our colleagues from both sides of the tion’s water supply. While it is widely Senator REID for moving this very im- aisle and the Administration. It rep- believed that our water supply is safe, portant Bioterrorism Preparedness Act resented a compromise. there are a few vulnerabilities that forward. I commend Senators FRIST, It requires substantial payments by must be addressed. Our bills would pro- KENNEDY, and GREGG for their work. insurance companies before the federal vide resources for research into secu- We intend to work with the House and government provides a backstop. The rity at facilities and assessment tools get this passed quickly when we re- proposal would require the insurance while also providing seed money to en- turn. I thank Senator REID. industry to retain the responsibility to courage additional spending on secu- Mr. REID. I appreciate everyone’s co- pay for up to $10 billion in losses in the rity measures. operation. first year, and up to $15 billion in Mr. JEFFORDS. Our colleagues on The Presiding Officer (Mr. CORZINE) losses in the second year or around 7 the House side also recognized this appointed Mr. KENNEDY, Mr. DODD, Mr. percent and 10 percent of their annual need by including water security provi- HARKIN, Ms. MIKULSKI, Mr. JEFFORDS, premiums for each affected company. sions in the bioterrorism bill, H.R. 3448, Mr. GREGG, Mr. Frist, Mr. ENZI, and This legislation would ensure stability that was passed by the House on De- Mr. HUTCHINSON conferees on the part in the insurance market so that busi- cember 12th. I would like my col- of the Senate. nesses can afford to purchase insur- leagues’ assurance that during con- f ance. ference they will press for adoption of As this session of Congress drew to a MORNING BUSINESS the modified versions of S. 1593 and S. close, and we were forced to operate in 1608. Mr. REID. Mr. President, I ask unan- an environment that required unani- Mr. KENNEDY. I intend to press for imous consent that the Senate now mous consent agreements to do our adoption of these provisions. the secu- proceed to a period for morning busi- business, I regret that we were unable rity of our nation’s water supply is cru- ness, with Senators allowed to speak to complete our work on this legisla- cial to the health and well-being of our for up to 10 minutes each. tion. citizens. The PRESIDING OFFICER. Without Accordingly, the Senate will keep a Mr. GREGG. I concur, and I intend to objection, it is so ordered. watchful eye on the insurance market press for adoption of these provisions. f in the coming weeks, and we will take Mr. FRIST. I agree and you have my the appropriate action to respond to TERRORISM INSURANCE commitment to do the same. any problems that arise from the fail- Mr. SMITH of New Hampshire. I Mr. DASCHLE. Mr. President, it was ure to gain approval for the measure again would like to thank my col- regrettable today that we were unable we sought to pass today. leagues for agreeing to fight for these to gain unanimous consent to take up Mr. DODD. Mr. President, 3 months provisions during conference. It was H.R. 3210, the House terrorism insur- ago, our nation suffered devastating with great reluctance that Senator ance bill, and amend it with a sub- terrorist attacks. We are now con- JEFFORDS and I agreed to allow S. 1765 stitute offered by the Senator from fronted with one of the many to be brought to the floor without our Connecticut, Mr. DODD. We made a aftereffects of the terrible events of legislation included so that we can good-faith effort to address a pressing September 11th on our nation. We are move forward on this important bill need, but we found that some of our faced with the prospect that insurance and conference it with the House. How- colleagues insisted on the consider- protecting America’s buildings, busi- ever, it is important that these imme- ation of amendments that would make nesses, homes and workers from ter- diate needs be addresed and that our it impossible to complete work on this rorist acts will no longer be available. proposals be included in the the final issue in the short time this session of It is generally accepted that roughly legislation. I look forward to working Congress had remaining. 70 percent of insurance contracts are with my colleagues to ensure that the In the wake of September 11th, a scheduled to be renewed by year’s end. provisions we agreed to that comprise number of insurance companies are de- Already, many insurers have an- the modified versions of S. 1593 and S. clining to provide coverage from losses nounced their intention to withdraw 1608 are included in the bioterrorism that would result from a terrorist at- terrorism coverage from new insurance bill. tack. Those policies that are available policies. Mr. JEFFORDS. Finally, I want to are often priced so high that they are This is simply because primary insur- commend Senators KENNEDY, FRIST, unaffordable. Senator DODD’s proposal ers, who deal directly with policy- and GREGG and say that I am looking would have given them the safety net holders, have been unable to, in the forward to working with them during they need to keep insuring against ter- short term, purchase reinsurance from the conference on these measures. rorist risks. In turn, that coverage an unstable reinsurance market. Rein- AMENDMENT NO. 2692 would allow builders to keep building, surers are currently unwilling to write Mr. REID. Mr. President, I under- businesses to keep growing, and, hope- coverage in the face of future cata- stand Senators FRIST, KENNEDY, and fully, prevent against further economic strophic losses equal in magnitude to GREGG have a substitute amendment at setbacks. those suffered at the World Trade Cen- the desk which is the text of S. 1765. I Our amendment was the product of ter. ask unanimous consent that the extensive bipartisan negotiations. It Without the ability to purchase rein- amendment be considered and agreed was developed with extensive consulta- surance, primary insurers cannot actu- to and the motion to reconsider be laid tion with a number of Senate Demo- arially price policies that incorporate upon the table; that the bill, as amend- crats and Republicans—including Sen- the assumption of catastrophic ter- ed, be read a third time and passed, the ator GRAMM—as well as the White rorist losses. motion to reconsider be laid upon the House and the Treasury Department. I They are faced with two choices. table; that the Senate insist on its am especially appreciative of the enor- They can seek permission from state

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00139 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S13912 CONGRESSIONAL RECORD — SENATE December 20, 2001 regulators to exclude terrorist acts should be commended for his valiant attack. The Dark Winter exercise sim- from all of their policies. Or they can effort to secure an agreement. It is not ulated a smallpox bioterror attack and charge incredibly high premiums— his fault that this did not get done. He it found that 15,000 Americans could rates are nearly certain to go up 500 to has had his eyes focused clearly on the die and 80 million could die worldwide. 1000 percent of what is presently re- goal line every day on this bill. He has This is why it is so important to de- quired. No shareholder could be reason- been practical, energetic, tough, and velop medicines we can use to contain ably expected to allow their insurance patient. We are not able to act before the infections and deaths. My point company to underwrite the seemingly we leave, but I want to congratulate here is that we could well have claims immeasurable exposure of a terrorist Senator DODD for his valiant effort. much larger than we had with the act without drastically raising rates. Let me explain why this issue is so World Trade Center attack. Without federal action, we risk ei- important. There are hundreds of insurers in any ther the possibility that our Nation’s As part of their property and cas- given market. It is a highly competi- economy will remain defenseless from ualty insurance, many businesses have tive industry. a terrorist attack or the possibility insurance against the costs that arise But when reinsurers are not renewing that insurance companies will charge if their business is interrupted. their contracts without terrorism ex- unaffordable rates to every American If we don’t pass an effective terror in- clusions, many if not most of these insurance consumer. surance bill, the government will, in companies will not be able to provide Several of us endeavored to draft leg- effect, cause massive interruption in terrorism coverage—at any cost. islation to provide a short-term rem- the business community. We will cre- At the business decision level, each edy aimed to bring stability to the in- ate the interruption. individual insurance company consid- surance market, to protect taxpayers, We could have avoided this result by ering whether to issue policies that and to ensure that bank lending, con- passing this legislation. cover terrorism must assess the costs struction, and other activities vital to Property and casualty insurance is that might result if the terrorists suc- our economic health would not be jeop- not optional for most businesses. ceed in massive and horrific attacks, ardized. Not every business owner buys life perhaps in many areas at which the in- It is deeply regrettable that this leg- insurance, but nearly every business surance company may insure various islation will not be considered by the buys property and casualty insurance, businesses. Senate prior to the end of this session. to protect its property, to protect it Because no one knows where the ter- It is particularly regrettable because against being sued, and to protect its rorists might strike, insurers must ask the reason that this legislation was not employees under the state workers questions like: considered had nothing to due with the compensation laws. How much insured property value are core issue of terrorism insurance; it Property and casualty insurance is we covering in a given location? had to do with liability reform. Deep- required by investors and shareholders. How many workers are we covering seated differences on the issue created It is required by banks that lend for under workers’ compensation laws, an impasse. That is most unfortunate. construction and other projects. We all keeping in mind that workers’ com- The legislation that Senator SAR- know that home mortgage companies pensation death claims vary by state BANES, Senator SCHUMER and I offered require the homeowners to maintain but are as high as $1 to 2 million dol- was a modest proposal. It is based on homeowners property insurance, and lars per claim in some jurisdictions, in- three principles that must be included it’s the same with business lending. cluding here in the District. in any bill on this subject matter. Maintaining property and casualty What would we lose on business First, it makes the American tax- insurance is mandated as part of the fi- interruption claims if damage in a payer the insurer of last resort. The in- duciary obligation to the business. metropolitan area causes a large num- surance industry maintains front-line And if property and casualty insur- ber of businesses to be shut down by responsibility to do what it does best: ance for major causes of loss is not the civil authorities? calculate risk, assess premiums, and available, businesses face a difficult What about multiple attacks in dif- pay claims to policyholders. choice about going forward with con- ferent locations?—keeping in mind the Second, it promotes competition in struction projects, and other ventures. coordinated events on September 11. the current insurance marketplace. If no insurance is available, banks Unfortunately, at the individual in- Competition is the best way to ensure won’t lend and the business activity surer level, capital is finite, and the that the private market assumes the that is depending on the loans will companies that insure commercial entire responsibility for insuring stop. businesses have already taken a major against the risk of terrorism, without The impact on the real estate, en- hit due to the September 11 losses, as any direct government role, as soon as ergy, construction, and transportation well as having lost their reinsurance possible. This bill is a temporary meas- sectors will be severe. for terrorist acts. ure only, lasting for 24 months at most. Insurance companies must be able to Even a hypothetical good-sized com- Third, it ensures that all consumers ‘‘underwrite’’ their policies. This pany, one that would be in the top half and businesses can continue to pur- means that they need to be able to as- dozen or so commercial insurers in the chase affordable coverage for terrorist sess their exposure or risk of a claim. U.S., with perhaps 5 percent of the acts. Without action, consumers may They need to know if their exposure to commercial lines market and capital of be unable to get insurance or the insur- claims is acceptable, excessive, or inde- $7 or $8 billion, would have to ask, do ance available will be unaffordable. terminate. we want to roll the dice on our very I intend to watch the markets and In the case of claims for damages survival by writing terrorism cov- the economy closely in the coming caused by terrorist strikes, there is no erage? days and I am prepared to revisit this way to assess their risk and no way to Because that is what they would be issue early next year if the need arises. underwrite the policy. There are too doing absent this legislation, particu- Mr. LIEBERMAN. Mr. President, I many uncertainties. larly if they incurred a dispropor- have one simple message regarding the There is only one experience and the tionate share of the losses. terror insurance legislation. We need experience could not be more trou- For example, if one or more events to act now, before we adjourn, and we bling. caused even $100 billion in insured need to get this right. I fear that if we One thing that is certain, as it was losses, not that much more than the don’t act, or don’t get this right, we not before September 11, is that losses WTC, and they were lucky enough to will need to return early in January to from terrorist acts can cost tens of bil- have only 3–5 percent of the losses, address this problem. Unfortunately, it lions of dollars. In fact, under worst- they’d be severely crippled but might is now obvious that we won’t enact this case scenarios, losses could easily survive. But if their share of the losses critical legislation. This is irrespon- reach hundreds of billions of dollars. was 8–9 percent, they’d be out of busi- sible. I recently introduced legislation fo- ness. Let me say clearly, my colleague cusing on the need to develop medi- That is not a risk that an insurance from Connecticut, Senator DODD, cines to treat the victims of a bioterror company can reasonably take. If we do

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00140 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S13913 not pass this legislation, therefore, in- So, the issue is how we enable insur- controls are obviously unacceptable to surers will be forced to take whatever ance companies to determine that the many in the Senate and clearly unac- steps they consider necessary to ensure risk of terrorist claims is a risk that ceptable to the other body. they do not drive themselves into they can assume. A vote for price controls is a vote to bankruptcy. That is what this legislation is all collapse the property and casualty in- Make no mistake about it. The insur- about, defining the risk so that insur- surance market. ance industry can protect itself by re- ers can assess and put a price on it. Price controls in this sector would ducing its exposure to terrorism going This legislation is about facilitating distort markets, create incentives to forward. insurance companies’ ability to con- vacate the marketplace, and stifle There is nothing we can do in the tinue to write property and casualty competition. Congress, within the limits of our Con- insurance policies. We do know that the cost of property stitution, to require insurance compa- It is about providing business owners and casualty insurance will rise. nies to write policies. with the opportunity to buy insurance The current rates do not contemplate They don’t have to write policies. against terror claims and doing so in claims for acts of terror. Like it or not, If they don’t write policies, the com- the private market to the extent that there will have to be price increases to cover the risk of terrorism. The World panies may not be as profitable in the is possible. short run, but they will at least be pro- This is, of course, not the first time Trade Center attack was the biggest manmade casualty loss in history. It tecting themselves against insolvency, we have faced this kind of an issue. The was the biggest by a multiple of 40 or as any business has to do. Federal Government has a history of 50. State regulators are already consid- partnering with the insurance industry ering terrorism exclusions, as they The previous biggest manmade loss to provide coverages for risks that are was the LA riots, which cost less than must do, consistent with their respon- too big, too uninsurable, for the indus- sibilities to oversee the solvency of the a billion dollars. The current estimates try alone. are that WTC will cost $40 to $50 billion insurance industry. Current examples are the flood, crop, And absent exclusions, in states or more. and nuclear liability programs, and in where they might not be approved for The WTC losses exceeded the insur- the past we’ve seen partnerships on one reason or another, the insurers will ance industry’s total losses for com- vaccine liability and riot reinsurance. have no choice but to limit their busi- mercial property & liability coverage, From an insurability standpoint, it is ness. general liability, and workers’ com- If insurance companies are permitted beyond dispute that these risks are far pensation combined for the entire 2000 to write policies with no coverage for more insurable than terrorism, yet we year. claims connected to terrorism, then continue to struggle on this bill. Insurance companies cannot now businesses will have to decide if they First, the existing programs cover cover this loss, and restore reserves, will self-insure against these losses. fortuitous or accidental events, unlike without price increases. Insurance industry is one of the most Many of them will conclude that they terrorism, in which the risk is man- made, with the perpetrators measuring competitive industries in the U.S. cannot accept this exposure. If rates are rising too high, compa- It is clear, therefore, that when we success by how much damage they can nies will be falling all over themselves fail to pass this legislation, it will be cause and how many people they can kill. Second, the dollar exposures are to enter or re-enter the market. both the insurance industry and every- But so far, all signs point in the op- one they insure that loses. Insurance far less under the existing programs. Average annual losses on these pro- posite direction, with insurers and re- companies can protect themselves by insurers running as fast as they can not writing policies, or writing only grams, flood, crop, and nuclear liabil- ity, are probably only about $5 billion from this—hardly an indication that policies without any coverage for acts they’re gouging and planning on real- of terror. But companies that need in- combined, a full order of magnitude lower than the losses on September 11 izing egregious profits. surance coverage may have even harsh- There’s a state regulatory system in er options. alone. Some might debate whether we place that can clamp down on rates if What will be the effect on individual insurers overreach—and the bill leaves businesses and ultimately the eco- should have passed the existing pro- grams, or whether they are operated ef- the state regulators with the full au- nomic recovery if we do not pass this thority to disapprove rates that are ex- legislation? ficiently. But there should be no debate about the need for a terrorism pro- cessive. At the individual company level, if a I can’t think of a better way to do gram, and we have structured this one business in what appears to be a poten- the opposite of what we want to do, to the right way, with retentions and loss tial target area can only buy insurance prevent the return of a terrorism insur- sharing by the industry so the incen- with a terrorism exclusion, the owners ance marketplace, than to impose price would have to consider whether they tives are there for efficient operations. controls. want to commit new capital or even This legislative effort has failed in It is clear that the price of terror in- sell their current equity interests. part because there are some who would surance will be less because of the Fed- Banks would have to ask whether use this legislation as an opportunity eral guarantee. If insurance companies they could make new loans or perhaps to enact wide-ranging reform of the were forced to write terror insurance even default existing loans and mort- tort claims system. While I have sup- without this guarantee, they would gages, based on their determinations ported tort reform in the past, it is have to set a worst-case-scenario price. that insurance without coverage for clear that these reforms are not pos- They would have to protect the com- terrorism was unsatisfactory. sible now. If these reforms are attached pany from insolvency. It is clear that If insurers could not exclude ter- to the bill, as was the case in the these rates would make the insurance rorism and were forced to reduce their House-passed bill and as proposed in unaffordable. writing generally, the problem could be the Senate, the bill will die. This is Again, however, the problem is that even worse, at least in whatever areas what has happened. companies would not be able to set a or for whatever types of business were This legislative effort has failed in price because of the indeterminate na- considered most at risk. part because there are some who would ture of the risk. Companies would find that they use this legislation as an opportunity This legislative effort has failed in could not get coverage for their prop- to use this legislation as an excuse to part because there are some who would erties or their liability exposure or enact a wide-ranging and unprece- use this legislation as an opportunity their workers’ compensation liabil- dented venture in Federal regulation of to require the insurance companies to ities, because insurers were no longer the insurance industry. Some would, repay the government for its expendi- able to provide it. for example, seek to impose Federal tures. This is the case in the House- This is why the real estate industry Government price controls on the prop- passed bill. and a cross section of the business erty and casualty insurance policies. While requiring payment is intu- community have been pushing for this If such controls are added to this bill, itively attractive, the financial assist- legislation. it is clear that the bill will die. Price ance and payback mechanism in their

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00141 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S13914 CONGRESSIONAL RECORD — SENATE December 20, 2001 bill would discourage the return of a sponsibility of the government to pro- how coverage should be provided and to healthy private marketplace. tect the people against attacks from whom. One of our most important objectives without and within, and to the extent Since insurance regulation began, is to encourage the return to the mar- that terrorists succeed in causing it’s been the states that have done the ketplace of insurers and reinsurers. losses that exceed our bill’s insurance job, and until such time as we’re ready The problem with the House bill’s fi- industry retentions, it is because the to change that and enact a federal reg- nancial assistance and payback ap- government has failed in this most fun- ulatory scheme, we should be very proach is that it mutualizes the losses damental responsibility. Of all the var- careful about our involvement. within the program itself, reducing in- ious programs through which the gov- At the state level, insurance depart- centives for private innovation in the ernment and the insurance partner to- ments in each state are much closer to development of pooling and reinsur- gether to provide coverage for risks their markets, and they have the ex- ance mechanisms. If we’re going to thought to be uninsurable, this one pertise and the leverage to assess the sunset this program, we can’t provide stands out as presenting the best case availability of insurance and to take for mutualization of losses throughout for a taxpayer role. appropriate steps if there are problems. its duration and then expect that there In terms of price, we know that every I am very disappointed in the failure will be a healthy reinsurance market cent of any funds the Federal govern- to enact this legislation. I have sup- to the day after it terminates. ment contributes to pay claims will go ported my Connecticut colleague, Sen- Even if we did not adopt the other to the insured, not to the insurance ator DODD, and will continue to work body’s first dollar mutualization con- companies. with him to enact this legislation as cept, our objective of building a There is no Federal payment to any soon as possible in January. That we healthy marketplace, real work practi- insurance company that does not go have failed to act in this session and cality considerations, and public policy through to the victims. may well see unfortunate con- all argue for not requiring industry This makes it very hard to under- sequences. payback. stand the arguments some have made First, a payback requirement would in the other body about the insurance f be contrary to our objective of devel- companies repaying the amounts that NEXTWAVE SETTLEMENT oping a healthy marketplace. A pay- the Federal government might con- back requirement would, from day one, tribute. Mr. HATCH. Mr. President, I rise to raise the specter that in the event of If the government contributions are address the issue of wireless spectrum substantial terrorism losses, insurers passed through to the victims, what is and the importance of its availability would not only have to pay their share the benefit to the insurance companies and utilization in a struggling econ- of the losses but would also have to go that needs to be paid? omy. On November 28, 2001, the Admin- to their regulators for substantial rate Do the companies then increase their istration forwarded proposed legisla- increases to repay the government— rates to cover the cost of the repay- tion to Congress to codify a proposed with no guarantees that such rate in- ment? settlement in the NextWave wireless creases would be allowed. That is not If repayment is required, it would spectrum bankruptcy litigation. We the way to facilitate a healthy market- have to come, directly or indirectly, needed to pass this legislation before place. from the victims, not the insurance December 31st in order to avoid nul- Second, from a practical standpoint, companies. lifying the agreement. Unfortunately, let’s also recognize that under our bill There are some who would seek to it appears we will not be able to ad- any government payments would not add provisions to the legislation fo- dress this settlement before the end of really go to insurers, that any repay- cused on ‘‘cherry-picking,’’ that is the year because members of this body ments would not really come from in- seeking to reduce the risk of the port- have expressed their intention to block surers, and that it is the public in ei- folio of clients and load it with lower its consideration on the floor. It is not ther event that will bear the cost of risk clients. certain that a similar settlement can this program. Insurance, like other financial serv- be arranged next year—which leaves a The government payments are all ices, is a very competitive business— significant financial return to the U.S. keyed to amounts paid to claimants, and there are a variety of opportunities Treasury in doubt and denies viable in- and any repayments would or at least for large and small businesses to get dustry actors access to essential wire- should be funded by policyholders, ei- coverage, with hundreds of insurers op- less spectrum which could be a vital ther indirectly through subsequent erating in any given market. tool in jumpstarting the economy. rate increases or directly through pol- For the largest businesses, which are This is not the first time I have icyholder surcharges. probably most at risk due to the stag- voiced my concerns about the Therefore, as long as an insurer’s gering workers’ compensation expo- NextWave spectrum controversy. In a rates for terrorism coverage are based sures they present, in addition to tradi- letter to then Chairman Kennard of the only on its deductible and quota share, tional insurers, there are sophisticated Federal Communications Commission government payments would not give a offshore, excess and non-admitted mar- in October of 2000, I warned him that a windfall to the insurers. That is of kets they can tap into, as well as other premature re-auction of the NextWave course how rates should be determined, risk-spreading devices. licenses would be imprudent while liti- since the state insurance commis- For the smaller companies, if cov- gation was still pending in the D.C. sioners will have the authority to dis- erage isn’t available from standard pri- Circuit. The legal questions went di- approve excessive or unfairly discrimi- vate market insurers, most states have rectly to the possessory interests of natory rates. legislatively mandated market plans to the spectrum and the validity of the It is of course the public that will provide workers’ compensation and FCC’s action to automatically cancel also bear the cost of this program property insurance. NextWave’s licenses upon filing for whether or not we require insurers to The insurance industry also has a bankruptcy. The FCC ignored my pay back the government. The costs of long history of working together to warning and, in so doing, created un- any such repayments would ultimately form pools and reinsurance arrange- told practical problems and a myriad be paid by commercial businesses, ments so risks that are too difficult for of legal liability issues. which would in turn pass the costs one company can be handled as they’ve On June 22 of this year, the D.C. Cir- back to the customers, employees, and done for aircraft, including those that cuit ruled in favor of NextWave, hold- shareholders, which is to say back to were hijacked on September 11. ing that the FCC violated Section 525 the public. They can do this if we pass this bill of the Bankruptcy Code. This order es- Finally, from a public policy stand- to provide them the financial backstop sentially nullified Auction 35 in which point, I would refer you to the very they need. the FCC preemptively re-auctioned the simple fact that it is losses caused by The fact is that we do not have the spectrum licensed to NextWave. Pres- terrorist attacks on our country that expertise to step into this complex ently, both sides have filed for certio- we are talking about here. It is the re- arena and set the controls to determine rari with the Supreme Court to ask for

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00142 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S13915 the final disposition of this case. How- ducers, but also to the surrounding bill through Congress for the sake of ever, there is no certainty that the Su- rural communities. When producers are passing a bill. preme Court will agree to review the hurting, they can’t invest in our econ- The only reason we have debated this case, or if it does, when or to whom it omy. Agriculture is the backbone of bill a year ahead of schedule is because will ultimately award the licensing Montana’s economy. And the backbone some fear that the fiscal year 2003 rights to the spectrum. In fact, given of rural America’s economy. The ripple budget resolution won’t have enough the D.C. Circuit’s opinion and legal effect is being felt throughout the room in it to load up whatever farm reasoning, there is a substantial likeli- country. bill the Senate considers with all the hood that the FCC will not prevail, To help with the ongoing drought, it spending the majority desires. which may be why they were able to is important that we provide our farm- Indeed, according to an article in the reach the settlement of this issue. ers and ranchers with natural disaster December 8th edition of Congressional After extensive negotiations, the in- assistance. I included more than $2 bil- Quarterly, ‘‘lobbyists fear that if Con- terested parties, including the Office of lion towards disaster assistance in my gress waits until 2002, when the current Management and Budget, the U.S. De- economic stimulus bill, but that bill authorization bill expires, then the partment of Justice, and the FCC, has fallen to the same fate as the farm $73.5 billion in new spending for agri- reached a comprehensive Settlement bill—it’s at a stalemate this year. I’m culture programs over the next 10 Agreement to govern the disposition of dedicated to including disaster assist- years that was set aside by this year’s the licenses in question and provide for ance in the farm bill, in another eco- budget resolution might vanish.’’ their release into the marketplace and nomic stimulus bill, or any other vehi- Senator KENT CONRAD, the Chairman financial return to the Treasury. cle I see available. The assistance isn’t of the Senate Budget Committee, who This proposal is a chance to bring something our ag community can wait clearly must understand our country’s closure to litigation that has dragged for and I’ll keep working to see that financial condition, has said, ‘‘the on, and which, in all likelihood, could they don’t have to. money is in the budget now. If we do result in a net loss to the government The Senate’s failure to pass a farm not use the money . . . it is very likely if it were to continue. We have an op- bill this year not only hurts our pro- not going to be available next year.’’ portunity to finalize this settlement, ducers, it hurts our lenders and our That does not sound like ‘‘need’’ to return money to the Treasury and re- rural businesses as well. The bill that me, it sounds like opportunism, and op- lease valuable spectrum for commer- we passed by the Senate Agriculture portunism is not sufficient reason for cial use—something that is essential to Committee includes a Rural Develop- the majority to rush through a bill this help this struggling economy. ment Title that would have provided important and this expensive. The current litigation has been pro- rural economies with much needed sup- I agree with the analysis of Senator longed unnecessarily. To continue it port. It’s long overdue that we provide LUGAR, the Agriculture Committee’s now, in my view would be a mistake, stability for our agricultural producers Ranking Member, who correctly stated and the American taxpayer could be and our rural economies. on the Senate floor last Tuesday, De- the loser. I certainly hope that the Lenders in Montana and across the cember 11, that, ‘‘Proponents of the American taxpayer ultimately is not country are getting nervous as the lean bill, S. 1731, fastening on to a budget the victim of Congressional inaction. years of production are starting to add resolution adopted earlier this year, f up. Their nervousness is compounded said we have pinned down $172 billion now that we failed to act this year. over 10 years, $73.5 billion over base- FARM BILL The time has come. We can no longer line, over the normal expenditures that Mr. BAUCUS. Mr. President, I rise wait to repair the current farm bill. have been occurring year by year in today to share my dissappointment The health and stability of our pro- the agriculture bills . . . I and others about the farm bill with you. It is vital ducers, of our rural communities, and have pointed out that [the money] real- that we get a strong bill passed before of America is up to us. Our Nation de- ly is not there.’’ we adjourn this year and, unfortu- pends upon our agricultural producers Now, I take a back seat to no one in nately, that isn’t going to happen. To for a safe, affordable, and abundant terms of my concern for the American put it simply: Our farmers and ranch- food supply. Now our producers are de- farmer. When I was governor of Ohio, ers deserve more from their representa- pending on us to provide them with a agribusiness was my number one eco- tives. safety net they can rely upon. The nomic development initiative. As long as I have been in the Senate, time is now. We must all dedicate our- Many people, even Ohioans, don’t re- I have never seen the agricultural com- selves to getting back to work on the alize that food and agribusiness means munity more united than they were farm bill in January. We must work to- more than $73 billion to Ohio’s econ- yesterday in invoking cloture and get- gether to pass a strong, stable, and omy each year. In fact, one in six Ohio- ting the Senate farm bill passed the comprehensive farm bill quickly. ans is employed in one aspect of agri- floor this year. Mr. VOINOVICH. Mr. President, over culture or another. The farm bill we passed out of com- the past 2 weeks, the Senate has en- I gave agriculture more attention mittee is a good bill. It is not a great gaged in what is probably a first in the and priority than any governor in bill. But it’s a good step in the right di- history of this body: it has worked to memory, and I continue my close rela- rection. We had the opportunity to complete a task before a deadline. tionship with Ohio’s agribusiness com- work together to make this bill as Even as appropriations bills remained munity. comprehensive, full of common sense, unfinished 3 months into the fiscal Nevertheless, I could not support the and strong as possible. My sleeves were year, we have, for the past couple of majority’s farm bill as written, and rolled up and I was dedicated to pass- weeks, debated a farm bill a full 9 honestly, I am disappointed at the ap- ing the farm bill this year. And I’m months before the current authoriza- parent lack of respect some of my col- still dedicated to passing a bill when tion lapses. leagues seem to have for the American we get back next month. As admirable as it is to work ahead farmer. We need to support our Nation’s agri- of schedule, this has been an unneces- Every farmer worth his salt knows cultural producers. Now. We can’t wait sary exercise. There is no reason that that if he or she wants to stay in busi- until the current bill expires. We rely the Senate has had to debate the farm ness, they have to be fiscally respon- on our producers for a safe and afford- bill when these programs don’t expire sible and make tough choices. They able food supply. Now they are relying until the end of the fiscal year. know that the United States has to do on us for survival. I joined in the successful effort here so as well. They understand that the Our agricultural producers are suf- in the Senate to postpone debate on majority’s farm bill did not focus on fering. Years of low prices and drought the farm bill until next year. It is my proper planning and making the right have made it nearly impossible for hope that we will do a better job at choices, but rather ‘‘getting while the farmers and ranchers to break even. writing a bill that will address the getting is good.’’ Low prices and drought have been needs of our farmers in a fiscally re- Some here in Washington think that disastrous not only to agricultural pro- sponsible way, rather than rushing a viewpoint epitomizes the American

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00143 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S13916 CONGRESSIONAL RECORD — SENATE December 20, 2001 farmer, but for anyone in this body to In an article that appeared in the De- ing increase allowed by the fiscal year think that the American farmer is only cember 18 edition of the Financial 2002 Budget Resolution. concerned about ‘‘what’s in it for him,’’ Times, former U.S. Secretary of Agri- As we near the end of this year, we is an insult to their patriotism and culture Mike Espy, noting Congress’ find ourselves facing challenges that their own understanding of fiscal re- apparent willingness to abandon a mar- could never have been predicted a year sponsibility. ket-based approach to agriculture, ago. An economic slowdown that began Let me make it abundantly clear, stated ‘‘It’s very awkward. Here we are in the spring of 2001 has now been this bill was written and has been de- involved in a global effort to reduce deemed a full-fledged recession; a re- bated without any regard for the other subsidies, and this [bill] flies in the cession that was exacerbated by the obligations our nation now faces. It is face of that effort.’’ events of September 11. heedless of America’s national security Current Agriculture Secretary, Ann As Americans have responded gener- needs and it does nothing to acknowl- Veneman, said in the same article that ously to the needs of the victims and edge the long-term fiscal responsibil- the legislation would ‘‘exacerbate over- their families, the federal government ities of our Nation. Instead, the Major- production and perpetuate low com- has acted quickly and significantly as ity’s Farm Bill really just helps the na- modity prices,’’ which would under- well. We’ve passed a $40 billion emer- tion’s agricultural conglomerates. mine our ability to expand into new gency supplemental bill, as well as $5 When Congress passed the last farm foreign markets. billion in grant funding to help prevent bill in 1996, it did so with the intention That’s because the majority’s farm the collapse of the airline industry. In that it would gradually phase out the bill would put in place counter-cyclical addition, we could spend another $100 heavy reliance on subsidies char- payments, which pay farmers a subsidy billion for an economic stimulus pack- acteristic of previous farm bills and as the price of their commodity falls. age soon after we return from recess. move towards a more market-oriented This approach most assuredly would Add all that to the $25 billion that approach. That bill was named Free- run afoul of the WTO treaty. dom to Farm. Appropriators and the White House What’s more, the subsidies under the agreed this summer to spend over and However, had S. 1731 passed, it would majority’s proposal would go to mil- have increased federal spending by over above the fiscal year 2002 budget reso- lions of farmers and quite a few lution that Congress passed, and we $70 billion over ten years, putting us wealthy individuals and even some back to where we were prior to Free- could spend some $170 billion over the Fortune 500 corporations. budget resolution. dom to Farm, when farmers were more Again, the Financial Times article To put that in perspective, $170 bil- dependent on the federal government. references an organization known as lion represents 30 percent of all the I remain supportive of market-based The Environmental Working Group, regular discretionary spending Con- farm policies, but I believe important which has on its web-site a compilation improvements must be made to the gress enacted in fiscal year 2001. of more than 2.5 million farmers who current system that will allow our Given this amount of spending, the receive subsidies. Of that total, the farmers to adapt to a global market- Senate is poised to spend every last tax largest farms get the most amount. dollar, all of the Medicare surplus and place. Unfortunately, that same mar- To quote the news article, ‘‘just 1,290 ketplace has kept U.S. prices and in- the entire $174 billion projected Social farms have each received more than $1 come low for the past three to four Security surplus. Even that won’t be million in the past five years; Tyler years due to ever increasing world sup- enough. Farms of Arkansas, which grows cot- plies coupled with low export demand. ton, rice and soybeans, led the list at To cover all of this spending, includ- The cost has been outrageous, with ing the spending in the majority’s farm Congress appropriating more than $32 more than $23 million. In addition, 11 Fortune 500 companies, including Chev- bill if it passed, the federal government billion in emergency spending since would have to issue tens of billions of Fiscal Year 1999 to offset low prices ron and International Paper, also re- ceived farm subsidies. In contrast, the dollars in new debt this fiscal year de- and assist farmers who suffered losses pending on the size of the stimulus bill, due to natural disasters. I have to ask: average farm in the bottom 80 percent got just $5,830.’’ any additional defense spending we What happened to Freedom to Farm? pursue, plus the inevitable emergency I have opposed these emergency While I would have voted against the bill proposed by the majority, the supplementals Congress will pass be- measures, not only because they were tween now and the end of the fiscal not offset, which has added to our cur- Cochran-Roberts Amendment that was considered on Tuesday provided a year. rent budget crisis, but also because It’s amazing that a few months ago, ‘‘stop gap’’ emergency measures only workable alternative. Instead of creating a counter-cyclical people here were worried we would run meet a temporary need, and do nothing out of debt to repay. Now, we are in a to help the long-term outlook for the program, the Cochran-Roberts Amend- far different situation. American farmer. ment would have created farm savings Unfortunately, the majority, in their accounts for producers to participate In fact, Treasury Secretary O’Neill bill, attempted to rectify this situation in on a voluntary basis, with matching sent a letter to the Majority Leader by making these emergency payments funds provided by the USDA. This last week requesting that the govern- essentially permanent. money would help farmers make ends ment’s debt ceiling be raised. The Sec- In a December 14 editorial titled ‘‘A meet during the lean years and would retary indicated that the current bor- Piggy Farm Bill,’’ the Washington Post be a great improvement over the cur- rowing limit of $5.95 trillion will be labeled S. 1731 ‘‘obscene,’’ and pointed rent practice of relying on touch-and- reached by February and that the ad- out that billions indeed have been go so-called ‘‘emergency’’ supple- ministration requests that the national made available in the past few years in mental farm spending bills. debt ceiling be raised to $6.7 trillion. ‘‘emergency’’ payments, however, the While I am still concerned with the As recently as August, the adminis- Post goes on to say ‘‘the effect of the expense of the Cochran-Roberts tration projected that the current bor- new bill would be to regularize those Amendment, it evenly divides its rowing limit would not be reached [payments], thereby abandoning the spending over the first and last five until September 2003. This is dis- five-year experiment in supposed mar- years, and is thus more fiscally respon- turbing. ket reform.’’ sible than the Majority’s proposal I am pleased we are not going for- Another contention that I have with which frontloads $45.3 billion of their ward with a farm bill that we cannot the majority’s bill, is that passage of S. $73.5 billion bill in the first five years. afford at a time of fiscal crisis, and 1731 as written could very well have Unfortunately, the Cochran-Roberts that we are not going forward with a put the U.S. in violation of our obliga- amendment was defeated along party bill that is frankly not in the best in- tions under the World Trade Organiza- lines. terest of our farmers and definitely not tion and weakened our demands that So we were left with the bill pushed in the best interest of the American Europe and other countries cut subsidy by the majority with a price tag we people. It is unfortunate, though, that payments to their agricultural pro- cannot afford. It will most assuredly we spent two weeks debating the ma- ducers. exceed the $73.5 billion, 10-year spend- jority’s farm bill, when there are three

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00144 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S13917 other pieces of legislation that I be- The third bill is a comprehensive en- a bill that has been fully vetted, fol- lieve we should have been considering ergy bill, one that will help our econ- lowing a thoughtful and comprehensive instead. omy and harmonize our energy needs debate. Sadly, S. 1731 offered our farm- Our number one priority should be an with our environmental needs. ers precious little in that regard as the economic stimulus bill, or ‘‘jobs bill’’ While national energy policy is being majority focused more on getting a bill as it should be called. held hostage to the demands of envi- done than getting the right bill done. Just last week, I was part of a six- ronmental groups, the United States It is my hope that in the months member bipartisan group of senators must continue to rely on energy ahead, we will craft a Farm Bill that who were invited to the White House sources in the Middle East. Surely I will help farmers succeed while reflect- by the President to discuss the stim- don’t have to remind my colleagues of ing the other pressing fiscal needs that ulus bill and the package that the Cen- the political instability that exists in also face our nation. I look forward to trist Coalition has been working on for this area of the world. working with my colleagues to enact the past seven weeks. After the meet- The most glaring example of how the such legislation. ing, President Bush announced his sup- lack of an energy policy is affecting us I ask unanimous consent that the ar- port for our stimulus package; a pack- is the fact that we currently rely on ticle be printed in the RECORD. age that responds to the needs of those Iraq for more than 750,000 barrels of oil There being no objection, the mate- who are currently unemployed by ex- per day. As my colleagues know, Iraq is rial was ordered to be printed in the tending benefits and health care cov- a hotbed of terrorism, and I have no RECORD, as follows: erage. doubt the manufacturer of weapons of [From the Financial Times, Dec. 18, 2001] It also provides rebate checks to mass destruction, run by a man who US AGRICULTURAL BILL WILL GO AGAINST THE those Americans who pay Social Secu- would dearly like to inflict pain upon GRAIN WORLDWIDE rity taxes but who did not qualify for the United States if given the ability. PROPOSALS TO INCREASE SUBSIDIES FOR rebate checks earlier this year. It We have to put the interests of the FARMERS COULD VIOLATE WTO RULES would truly be a wonderful holiday American people in front of politics (By Edward Allen) present for the working men and and special interest groups. I say to my There being no objection, the mate- women of America as well as the na- colleagues that it is better to be able rial was ordered to be printed in the tion itself since people would receive to know that we can rely upon our- RECORD, as follows: extra cash to help pay their holiday selves to meet our energy needs than [From Financial Times, Dec. 18, 2001] bills, and their spending would help to rely on Saddam Hussein. We need to U.S. AGRICULTURAL BILL WILL GO AGAINST spur the U.S. economy. stand up and do the right thing and THE GRAIN WORLDWIDE: PROPOSALS TO IN- The bill also contains other stimulus pass a comprehensive energy policy CREASE SUBSIDIES FOR FARMERS COULD VIO- functions, including 30 percent depre- now, and to me, it is incredible that LATE WTO RULES ciation bonuses to encourage invest- the Majority Leader placed it on the (By Edward Alden) ment; a reduction in the 27 percent tax back-burner in favor of a farm bill that Five years ago, when the US Congress last rate to 25 percent; and tax incentives we can consider later this fiscal year. passed a major bill to reform its farm policy, to encourage small business owners to Our farmers understand the need to it pledged to wean farmers from two genera- increase investment. enact these three bills because they use tions of government subsidies and reintro- I won’t sugarcoat the fact that it will energy, because they feel the pinch of a duce market pressures into US agriculture. take a lot of money to jumpstart our soft economy, and, because farmers This week, the Senate is set to follow the $10 trillion economy, and our approach know the right thing to do. House of Representatives in declaring that may cost up to $100 billion. However, I It is my hope that we will be able to experiment a failure. Instead, Congress is close to approving legislation that will in- believe that it is necessary to get our address these three issues quickly crease federal subsidies to farmers by more nation out of the recession we’re in. when we return next year and that we than $70bn over the next decade. That’s why I am somewhat dismayed will do a better job of prioritizing all of The sharp turnround has undermined the that the Majority Leader did not bring the necessary work this body under- Bush administration’s preparations for the the stimulus bill to the floor for con- takes. launch of a new round of world trade talks sideration during these past couple of There was no compelling reason why that is supposed to cut sharply government weeks. Early this morning the House we needed to consider the Farm Bill supports for agriculture. The increase in sub- passed a responsible bill based on the one week before Christmas. In fact, sidy payments to farmers could put the US in violation of World Trade Organisation Centrist package which the President with one year left on the authorization rules, and will seriously weaken the credi- has agreed. It’s a compromise package of the Freedom to Farm Act, we will bility of US demands that Europe cut its that reflects much of what the Major- have almost all of 2002 to work on this farm subsidies. ity Leader has said he wanted. How- legislation. ‘‘It’s very awkward,’’ said Mike Espy, a ever, that wish list seemed to shift When we return next year, and after former secretary of agriculture. ‘‘Here we when it became clear that a genuine we take up the critical issues like en- are involved in a global effort to reduce sub- willingness to compromise existed. The ergy, stimulus and terrorism insur- sidies, and this flies in the face of that ef- American public have expected us to ance, we should follow the President’s fort.’’ Over the past decade, the US government pass such a bill, and I am disappointed suggestion and sit down with real num- has tried to persuade farmers that their fu- that we have not yet done so. bers and put together a farm bill that ture lies in opening up markets for farm The second bill we should consider is is fair to America’s farmers, the men products abroad. a terrorism reinsurance bill. This legis- and women who really need help; fair But instead, US exports fell sharply fol- lation would provide government back- to the American taxpayer; and fiscally lowing the 1998 Asian financial crisis and ing to help cover the costs of damages responsible. I also would encourage my commodity prices plummeted. This led Con- incurred in the event of an act of ter- colleagues to take a look at other farm gress to approve billions of dollars in emer- rorism. Without it, we are going to see bill alternatives, such as Senator gency payments to US farmers over the past three years. ‘‘We have seen that export mar- many businesses with enormous in- LUGAR’s proposal, and the proposal put kets do not serve as a reliable safety net in creases in their insurance costs. And forth by Senators COCHRAN and ROB- and of themselves,’’ said Tom Harkin, the that’s for companies that can get in- ERTS. I believe they are on the right Iowa senator who is the chief sponsor of the surance. track. Senate bill. The new farm bill will entrench As a result, projects that are on the Right now, we are facing tough times that philosophy by institutionalising so- table or in the planning process will that affect all Americans, including called counter-cyclical payments—subsidies not go forward and the economy will farmers, and the Senate needs to make that rise as crop prices fall. suffer. tough choices because that is what our Such subsidies, which have the perverse ef- There is a bipartisan proposal that is fect of encouraging increased production constituents have elected us to do. when prices are falling, run directly counter being worked on, and I can see no rea- The majority’s farm bill, S. 1731, was to what the US has tried to achieve in the son why we should not have pushed to the wrong bill at the wrong time. We WTO. The Bush administration admitted get this bill onto the floor of the Sen- shouldn’t have wasted precious time on earlier this year these counter-cyclical pay- ate before the end of the year. flawed legislation. Our farmers deserve ments fall into the so-called amber box of

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00145 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S13918 CONGRESSIONAL RECORD — SENATE December 20, 2001 subsidies that must be reduced under WTO day season is simply heartbreaking. It is my hope that the work that Sen- rules. But today too many charitable organi- ators LIEBERMAN and SANTORUM have If crop prices continue to fall, automati- zations are facing new funding con- done will not go to waste. I believe cally increasing government payments to straints and cutting back on items like that next year we can build on the bi- farmers, the US could run up against the Dollar 19.1bn per year that is the maximum food vouchers. Many of us in Congress partisan process that Senators LIEBER- allowed under these restrictions. have been interested in looking for MAN and SANTORUM have created to re- The administration and some critics in ways to resolve these problems and solve these outstanding issues. Once we Congress have tried to fight back. strengthen the partnership between do that I am confident the Senate will Ann Veneman, agriculture secretary, said charities and the Federal Government. be able to quickly move a consensus earlier this month the new farm bill would Senators LIEBERMAN and SANTORUM bill. Finally, let me applaud Senators ‘‘exacerbate overproduction and perpetuate have been working throughout the year LIEBERMAN and SANTORUM for their low commodity prices’’, and would com- to develop just such a solution. work and dedication to this important promise US efforts to open new markets Throughout their process they have abroad. Pat Roberts, the Kansas senator who issue. was the chief author of the 1996 farm reform, consulted with my staff and the White f House to ensure that the final product was blunter. JUDICIAL NOMINATIONS He charged last week that the powerful would be a consensus bill that would farmers who will reap a windfall in new sub- enjoy bipartisan support. I am pleased Mr. BIDEN. Mr. President, as a sidies ‘‘view the farm bill as an ATM ma- that the outlines to an agreement are former Chairman of the Senate Judici- chine’’, the American term for automatic now within reach. Had the Senate had ary Committee, I would like to shed a cash dispensers. The administration and its more time, I would be very interested bit of the light of history on the Com- outmanned supporters in Congress are hop- in seeing the package that has emerged mittee’s record this year with regard ing to delay final passage of the bill until to judicial nominations. The first year next year when the government will produce introduced and debated by the full Sen- new budget numbers. Those figures, which ate. of an Administration is always dif- will show the federal surplus vanishing as a The Lieberman-Santorum package is ficult, with a new Administration set- result of recession, tax cuts and the war on comprised of two limited components: tling in and the need in the Senate to terror, could create pressure to curb farm one, a tax and technical assistance sec- confirm a host of non-judicial officials spending. tion; and two, a social services section to serve in that new Administration. The bloated farm bill legislation has in- that includes a title on equal treat- As a result, the Senate’s duty to ‘‘ad- deed cast an embarrassing new light on rural ment for non-governmental providers, vise and consent’’ in judicial nomina- America’s dependency on the federal govern- tions is all the more difficult to fulfill. ment. authorization for a capital compassion The Environmental Working Group, a non- fund, a program on mentoring for chil- I was privileged to serve as Chairman profit organisation, last month posted on its dren of prisoners, and appropriations of the Judiciary Committee the last website a comprehensive list of the subsidies for funding Social Services Block two times a new Administration came received by more than 2.5m American farm- Grants and Maternity Homes. into the White House. In 1993, when ers. I am pleased that Senators LIEBER- President Clinton arrived, we worked The data, obtained under US freedom of in- MAN and SANTORUM were able to resolve hard and confirmed 28 judges that first formation laws, shows that a small number most of the problems that caused many year, with the White House and the of large farmers gets the vast majority of to oppose H.R. 7. Their compromise Senate controlled by the same party. federal payments. Just 1,290 farms have each received more than Dollars 1m in the past package eliminated privatization and In 1989, when the first President Bush five years; Tyler Farms of Arkansas, which the voucherization of federal social took office, with an opposing Senate, grows cotton, rice and soybeans, led the list service programs, as well as preemp- we managed only 15 judicial confirma- at more than Dollars 23m. tion of state and local civil rights laws. tions in the first year. In addition, 11 Fortune 500 companies, in- Their package also remained silent on This year, the White House got a late cluding Chevron and International Paper, Federal funding of pervasively sec- start on its executive branch nominees, also received farms subsidies. In contrast, tarian organizations and expansion of due to the election battle. For this and the average farm in the bottom 80 per cent the Title VII exemption. other reasons, no judges were con- got just Dollars 5,830. I also support many of the tax and The new bill would only increase that firmed while the Republicans held the trend by linking payments firmly to produc- spending provisions that have been pro- Senate this year. Since June, when the tion, thereby rewarding the country’s largest posed. In particular, research shows Democrats took control of the Senate, farmers. that provisions like the IRA-rollovers the White House and the Senate have Other agricultural exporting countries like and food and book donation provisions been controlled by different parties, Australia and many Latin American nations are effective in inducing new chari- normally a recipe for stagnation on ju- are dismayed by the direction of US farm table giving. Additionally, increased dicial confirmations. Still, by the end policy. Warren Truss, Australia’s agriculture funding for the Social Services Block of this year, if all goes as expected, we minister, said during a visit to Washington Grant is an important provision to en- last week that the new bill would ‘‘entrench will have confirmed more judges—more a mentality of farm subsidies in the US. sure that at long last we fulfill our than twice the number confirmed in ‘‘It is obvious that the US which once commitment to providing adequate re- 1989, and even more than we accom- proudly boasted it had the most efficient sources for community programs. plished in 1993, when the White House farmers in the world, has now degenerated to While much hard work has already and the Senate were held by the same a situation where US farmers are dependent been done on all sides to get a bill that party. And as the guy who was running upon the taxpayers for around half their in- can pass, some concerns remain with the Judiciary Committee in 1989 and come.’’ provisions of this package. Given the 1993, I can tell you that we were not The European Union, however, has been slowing economy and OMB Director noticeably quiet on the farm bill debate. As sitting on our hands back then. And the world’s largest provider of agricultural Daniels’ statement that the budget will clearly the Committee has not been subsidies—at least for the moment—the EU be in deficit this year and for several dawdling this year. has the most to gain from a bill that will do years to come, the Senate must be Now, some people would come back much to erase any US claims to free market careful about any new tax and spending and say ‘‘well, what about appeals virtue. measures that are unpaid for. courts? Appellate judges are far more Said one EU agricultural official: ‘‘It has Therefore, while I strongly support important than district court judges.’’ certainly taken the heat off us.’’ increasing funding to charities, the As a matter of fact, we have confirmed f changing economic outlook demands more nominees to the appeals courts that fiscal responsibility be adhered to since June than were confirmed in all FAITH-BASED INITIATIVE when enacting new tax cuts. As we of 1993 or 1989. Mr. DASCHLE. Mr. President, unfor- move into the fiscal year 2003 budget Some people will come back and say tunately, during this holiday season cycle, I look forward to working with ‘‘but Joe, you know what really mat- there has been a decline in charitable Senators LIEBERMAN and SANTORUM, as ters is whether the number of vacan- donations. In the land of plenty, having well as the White House, to identify cies is growing or shrinking. Are we children going hungry during the holi- workable offsets. filling the slots?’’ That’s true—what

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00146 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S13919 really matters is not the whole number combat international terrorism and must make certain that our techno- of judges confirmed, but whether we protect our citizens from further at- logical infrastructure is protected from are making progress on filling the va- tack. The technological advantages we attack. To that end, critical infrastruc- cancies that have opened up on the fed- now enjoy—in weapons, in communica- ture should undergo automated elec- eral bench. Again, let’s look at the tions infrastructure, and in detection tronic testing of their internal and ex- numbers. In 1993, with the White House systems—must be both aggressively ternal network assets on a frequent and Senate in the same hands, we bare- pursued and zealously guarded. and recurring basis. This testing ly managed to reduce the number of For example, the recent anthrax at- should include written or electronic re- vacancies, by 3 slots. In 1989, with the tacks in this country highlight the ports detailing the methods of testing White House and the Senate split be- need for the prompt deployment of ef- used and the results of all tests per- tween the Republicans and the Demo- fective technology to track the origins formed, so that trend-line analysis of crats, the number of vacancies grew of the dangerous biochemical sub- network security posture can be con- over the course of the year by 14 slots— stances that threaten our security. ducted. the Senate could not keep pace with This lack of important information The Policy on Critical Infrastructure the retirements and resignations of hampers our ability to track down, Protection: Presidential Decision Di- federal judges. (It’s worth noting as capture, and punish terrorists and rective 63 (‘‘PDD–63’’) provided a start- well that, during the entire recent pe- their supporters. The technology to ac- ing point for addressing cyber risks riod when the Committee was chaired complish this goal exists, and can be against our Nation. This directive iden- by the Republicans, judicial vacancies quickly and inexpensively modified to tified the critical sectors of our econ- grew by 65 percent). By contrast, this law enforcement and public safety re- omy and assigned lead agencies to co- year, we will have reduced the number quirements. However, the government ordinate sector cyber security efforts. of vacancies by 20, or 18 percent. And needs to make this a priority. This directive presents the vision that Although we have long held concern that’s only since June. With the White ‘‘the United States will take all nec- for the impact of hazardous materials House and the Senate controlled by dif- essary measures to eliminate swiftly on the public, the terrorist attack of ferent parties. And with the September any significant vulnerability to both September 11 and subsequent attacks 11 attacks happening right smack in physical and cyber attacks on our crit- require a heightened response. The ical infrastructures, including espe- the middle of that period! weaponization of Chemical, Biological, I should point out that another hur- cially our cyber systems.’’ Radiological and Nuclear (‘‘CBRN’’) dle was thrown into the Senate con- I believe that we can prepare a de- materials demands an accounting of firmation process this year, which was fense for our critical infrastructure these high-risk materials, particularly not there in previous years. The White much like we prepared for problems as- as they accumulate at seemingly inno- House announced that it would no sociated with the year 2000 computer cent locations. Tracking CBRN mate- bug. First, we need, as the President longer vet potential nominees with the rials is an important step in antici- American Bar Association’s Standing recently appointed, an executive agent pating and preventing their misuse and for cyberspace security, who has the Committee on the Judiciary. As a re- thereby thwarting terrorist activity. sult, now the ABA’s evaluation of power necessary to cause mandatory We currently have the capability for private and public interaction and co- nominees must happen as part of the sophisticated materials management Senate confirmation process, after the ordination. Second, we must consider that connects people, places, processes, empowering and funding each PDD–63 candidate has been nominated by the and products in a manner critical to se- White House. This step adds weeks to lead agency to establish quantitative curity. The federal and local govern- baselines of the external and internal any confirmation. ments should work to put in service network security posture of their por- I should also point out that, not only high-risk material tracking systems tion of critical industries. This can be did September 11 disrupt just about ev- that provide the basis for powerful, in- done through automated electronic erything that was happening in this stantaneous decision making. The gov- testing. Third, we must identify vul- country, but it particularly affected ernment control centers can observe nerable critical systems within the the Senate; we had to turn imme- the global position of hazardous mate- critical infrastructures and secure diately to legislation necessary to au- rials provided by producers and users them to the extent possible through thorize the war on terrorism. More- in all our allied nations. In less acces- software updates, patches, and other over, the arrival of anthrax on Capitol sible locations, the information could correcting configuration issues. Hill displaced many Senators and staff, be collected through satellite tech- including Judiciary Committee staff. nology. Fourth, we should mandate continued My own Judiciary Committee staff has Such a hazardous materials manage- automated electronic reassessment of not had access to their judicial nomi- ment system should: provide for data systems, especially after upgrades or nations files—not to mention their of- collection and for authorization at cus- patches are applied. This will provide fice—for the past two months. toms operations and border controls; quantitative views of security over Despite all of these disruptions and use sophisticated bar code and embed- time. We must also enforce electronic delays, which I did not face when I ded chip data transmitting devices; documentation of reassessments and chaired the Committee, and which the employ handheld capabilities to man- hold businesses and vendors account- Republicans did not face during the age field operations and material logis- able for failure to adhere to security past 6 years when they controlled the tics; have multi-language capability mandates. Finally, we must expand our Committee, we will have confirmed and global reach; integrate with e-solu- domestic partnerships to global public/ more judges by the end of this year tions and Defense Department Enter- private partnerships, including both than in the first year of the Clinton prise Resource Planning systems; and coalition governments and multi- Administration, and more than twice make use of data mining and knowl- national corporations. I would also as many as in the first year of the first edge management principles. think that the broadening of mandates Bush Administration. And we will have Our Nation should immediately move in these partnerships should consider significantly reduced the number of ju- to identify and track the movement or standards for layered security, penetra- dicial vacancies from in just 6 months. accumulation of CBRN materials. We tion testing, and demonstrate a com- So, let my friends on the other side of must monitor CBRN materials at all mitment to the development and in- the aisle tone down their rhetoric, and global locations, including where they stallation of wireless equivalency pro- consult their history books. are produced, transported, used, staged tocols. f and/or stored. And we must track, con- We must make use of every tool at solidate and analyze the CBRN mate- our disposal in our fight against ter- TECHNOLOGY AND TERRORISM rial movements as the basis for a le- rorism. We must take advantage of Mr. HATCH. Mr. President, it is be- gitimate solution to the threats posed American ingenuity and our techno- coming increasingly clear that Amer- to Americans and our citizens abroad. logical supremacy as we work to rid ican technological supremacy will be At the same time that we use tech- the world of terrorism. In addition, it an invaluable asset in our efforts to nology to better protect Americans, we is critical that we protect our critical

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00147 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S13920 CONGRESSIONAL RECORD — SENATE December 20, 2001 technological infrastructure from TABLE 2.—REVISED BUDGET AGGREGATES, 2002— raling out of control: the MDC office in those who would use our technology Continued Bulawayo was invaded and burnt down against us. [In millions of dollars] with a petrol bomb, as the police stood f by and watched; there are reports that Budget au- Outlays MDC members have been illegally CHANGES TO THE 2002 APPROPRIA- thority taken into custody and tortured; the TIONS COMMITTEE ALLOCATION Adjustments: Emergency funds, Sept. 11 ...... 0 13,397 government announced the humani- AND BUDGETARY AGGREGATES Revised allocation: Budget Resolution ...... 1,519,719 1,498,525 tarian organizations will not be per- Mr. CONRAD. Mr. President, section Mr. CONRAD. Pursuant to section 311 mitted to distribute food aid in rural 314 of the Congressional Budget Act, as of the Congressional Budget Act, I areas where it is acutely needed; and amended, requires the chairman of the hereby revise the 2002 budget aggre- after two journalists were arrested, the Senate Budget Committee to adjust gates included in the concurrent budg- minister of information compared the the budgetary aggregates and the allo- et resolution in the following amounts. international media to terrorists and cation for the Appropriations Com- began notifying foreign journalists mittee by the amount of appropria- TABLE 2.—REVISED BUDGET AGGREGATES, 2002 that they would not be allowed to work tions designated as emergency spend- [In millions of dollars] in the country for the foreseeable fu- ing pursuant to section 251(b)(2)(A) of ture. the Balanced Budget and Emergency Budget au- Outlays Deficit Control Act of 1985, as amended. thority There are also serious concerns about the upcoming Presidential election The 2001 Emergency Supplemental Re- Current allocation: Budget Resolution ...... 1,519,719 1,498,525 covery and Response to Terrorist At- Adjustments: Emergency funds, ...... 300 75 scheduled for early next year. As a Gal- Revised allocation: Budget Resolution ...... 1,520,019 1,498,600 tacks (Public Law 107–38) contains lup poll shows President Mugabe run- ning behind MDC candidate Morgan funding that will result in $13.397 bil- f lion in outlays in fiscal year 2002. Be- Tsvangirai, many outside observers be- cause all budget authority in this ZIMBABWE lieve that Mr. Mugabe and ZANU–PF measure was appropriated in fiscal Mr. LEAHY. Mr. President, I want to will stop at nothing to remain in year 2001, the adjustment made here is take a few moments to discuss the de- power, and are engaged in activities to for outlays only. teriorating situation in Zimbabwe. undermine the democratic process and Pursuant to section 302 of the Con- Over the past several months, we have illegally alter the outcome of the elec- gressional Budget Act, I hereby revise all watched with alarm as President tion. In addition to the campaign of the 2002 allocation provided to the Sen- Mugabe has placed his desire to remain harassment and violence against MDC ate Appropriations Committee in the in power above the best interests of his supporters, the government has pre- concurrent budget resolution in the own people. In the process, Mr. vented non-governmental organiza- following amounts. Mugabe’s government has destroyed tions from carrying out voter edu- Pursuant to section 311 of the Con- the rule of law, contributed to food cation campaigns and has refused to gressional Budget Act, I hereby revise shortages, committed violations of allow observers from international or- the 2002 budget aggregates included in human rights, and wrecked the econ- ganizations, including the European the concurrent budget resolution in the omy—causing unemployment to rise to Union, to monitor the elections. More- following amounts. more than 60 percent. over, the government is pushing I ask unanimous consent to print ta- The issue has received most of the at- through electoral reforms that will ef- bles 1 and 2 in the RECORD, which re- tention is land reform. There is no fectively withhold absentee ballots flect the changes made to the commit- question that land reform is badly from Zimbabweans living abroad, with tee’s allocation and to the budget ag- needed to ensure long-term prosperity the exception of diplomats and sol- gregates. in Zimbabwe. As late as 1999, the proc- diers, and require voters to present There being no objection, the mate- proof of residency. These are measures rial was ordered to be printed in the ess appeared to be moving in the right direction: Zimbabwe had presented a that could eliminate thousands from RECORD, as follows: detailed plan for the inception phase of the voter rolls. TABLE 1.—REVISED ALLOCATION FOR APPROPRIATIONS a land reform effort, the World Bank Because of the serious situation in COMMITTEE, 2002 had made a $5 million pledge to assist Zimbabwe, I have joined with Senator FEINGOLD and sponsored a provision [In millions of dollars] with the resettlement of poor farmers, and several bilateral donors, including which was included in FY 2002 Foreign Budget au- the United States, made pledges of as- Operations Appropriations Conference thority Outlays sistance. Report that requires U.S. executive di- Current Allocation: However, in an attempt to deflect at- rectors to international financial insti- General Purpose Discretionary ...... 549,444 537,907 Highways ...... 0 28,489 tention from a failing economy, a mis- tutions to vote against loans, except Mass Transit ...... 0 5,275 guided military intervention in the those for basic human needs or democ- Conservation ...... 1,760 1,232 Mandatory ...... 358,567 350,837 Congo, widespread government corrup- racy-building purposes, to the Govern- tion, and a host of other domestic prob- ment of Zimbabwe, unless the Sec- Total ...... 909,771 923,740 lems, President Mugabe decided to sup- retary of State determines and reports Adjustments: port the sudden occupation of large that the rule of law has been restored. General Purpose Discretionary ...... 0 13,397 Highways ...... 0 0 farms. In the wake of this ill-conceived I would also like to point out that Mass Transit ...... 0 0 policy, several farmers have been earlier this session the House and Sen- Conservation ...... 0 0 Mandatory ...... 0 0 killed, the independence of the judicial ate passed S. 494, the Zimbabwe De- system has been seriously undermined, mocracy and Economic Recovery Act Total ...... 0 13,397 and agricultural production has been of 2001, and I look forward to President Revised Allocation: sharply reduced, contributing to wide- Bush signing it into law, as soon as General Purpose Discretionary ...... 549,444 551,304 Highways ...... 0 28,489 spread food shortages throughout the possible. S. 494 contains several provi- Mass Transit ...... 0 5,275 country. sions similar to section 560 in the For- Conservation ...... 1,760 1,232 Mandatory ...... 356,567 350,837 As the land seizure crisis continues, eign Operations Conference Report, al- other forms of harassment and polit- though section 560 does not provide Total ...... 358,567 937,137 ical violence in Zimbabwe—carried out waiver authority. primarily by members of the ZANU–PF Mr. President, I continue to strongly TABLE 2.—REVISED BUDGET AGGREGATES, 2002 party against members of the Move- support the Administration’s request [In millions of dollars] ment for Democratic Change (MDC), for assistance to Zimbabwe for health journalists, and other critics of the care programs, strengthening civil so- Budget au- government—have steadily escalated. ciety that is not affiliated with the rul- thority Outlays A number of recent events clearly indi- ing party, peace corps activities, and Current allocation: Budget Resolution ...... 1,519,719 1,485,128 cate that the situation is a risk of spi- humanitarian purposes. However, the

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00148 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S13921 request for funds to restart the Inter- and 1997, American Classic executives U.S. shipyards to succeed in commer- national Military Education and Train- met with members of Congress, labor cial construction, they must use com- ing is premature, and would send the leaders and shipyard owners in an all mercial procedures to maintain costs wrong message at this critical junc- our effort to promote the project in and ensure timely delivery schedules. ture. Washington.’’ My colleagues may re- Cost increases and schedule delays f call that this promotion paid off in the have significant impact on commercial form of political support which trans- customers—increased capital costs, BANKRUPTCY OF AMERICAN CLAS- lated into language being included in higher marketing costs, lost revenue SIC VOYAGES AND THE FAILURE the Fiscal Year 1998 Department of De- from employment of the vessel, and OF ‘‘PROJECT AMERICA’’ fense Appropriation Bill granting a market uncertainties.’’ Mr. MCCAIN. Mr. President I want to legal monopoly for American Classic In March 1999, the contract for bring to the attention of may col- Voyages to operate as the only U.S.- Project America was signed with great leagues a short article that appeared in flagged operator among the Hawaiian fanfare in the rotunda of this very Sunday’s New York Times that points islands. building and now we have one of the out just how awry a project based on My colleagues may recall that I ques- signatories calling into question the pork barrel politics can go. The article, tioned the merits of the ‘‘Project shipyard’s ability to succeed at com- title ‘‘A Venture in Ships Is a Rare Zell America’’ at the time the special legis- mercial ship construction. If a cus- Flop,’’ gives a short chronicle of the lation was considered and went as far tomer of the shipyard is questioning rise and fall of American Classic Voy- as to introduce an amendment to the Ingalls Shipbuilding’s ability to meet ages (AMCV), its largest shareholder, fiscal year 1998 Department of Defense its obligations, shouldn’t MARAD also and the government support for Amer- appropriations bill to remove the mo- have raised this question before it ap- ican Classic Voyages that has now left nopoly language. Based on the informa- proved the settlement agreement that the taxpayers holding the proverbial tion available at the time, I believed allowed for the continuation of the bag for a whopping $366.9 million in de- then that the project was more likely project? faults on title XI maritime loan guar- to fail than to succeed and I called the antees. monopoly language, and I quote an We all know the answer now. On October 19, 2001, American Classic ‘‘egregious example of porkbarrel In signing off on the Settlement Voyages (AMCV) voluntarily filed a pe- spending,’’ and asked ‘‘How many Agreement between AMCV and Nor- tition for reorganization under Chapter times has the U.S. Senate so blatantly throp Grumman’s Ingalls Shipbuilding, 11 of the U.S. Bankruptcy Code. The set up a monopoly set-aside for any in- MARAD, on behalf of the taxpayer, petition lists total assets of $37.4 mil- dividual or business?’’ I would ask now, agreed to assume the outstanding Title lion and total liabilities of $452.8 mil- how many times will we do this in the XI debt of $185 million on the first of lion. The cruise line’s reorganization future? the two cruise ships under construction petition indicated it has more than There were early warnings signs that at Ingalls in the event of an AMCV 1,000 creditors, including the Depart- something was going seriously wrong bankruptcy and complete the vessel, ment of Transportation. The Depart- with the project. During the first year after the issue of the remaining Title ment of Transportation in this case, of construction, ‘‘Project America’’ fell XI debt of $350 million. Fortunately, means the American taxpayer whose a year to a year-and-one-half behind AMCV filed bankruptcy before the re- exposure on a total of six title XI mari- schedule. Both American Classic Voy- maining debt was issued. Otherwise, time loan guarantees made to AMCV ages and Ingalls Shipbuilding were cry- MARAD would have been legally obli- totals $366,897,000. The loans cover five ing foul over construction problems gated to complete the vessel at an ad- vessels that were in service in Hawaii, and months of non-binding mediation ditional loss to the taxpayers. the East Coast, and the Northwest over contract disputes led to no resolu- On October 29, MARAD formally an- Coast and the partially completed tion. Accusations of default came from nounced that it was not legally re- ‘‘Project America’’ vessel at Northrup both sides. However, on September 21 quired to fully fund the construction of Grumman’s Ingalls Shipbuildings in of this year a resolution was an- the first ship at Ingalls Shipbuilding. Pascagoula, Mississippi. nounced. Yet, here we are three However, in a sign of just how deep the In order for my colleagues to fully months later and it is still unclear who political support of AMCV is, and de- understand what this article in the was at fault as both sides have refused spite the overwhelming evidence that business section of the New York to discuss the dispute. This is impor- the project was in serious trouble and Times represents, we really need to tant since, the settlement agreement was unlikely ever to be completed, 14 look back at the brief history of the between Ingalls and AMCV, which was members of Congress signed a letter American Classic Voyages rise and the reviewed and agreed to by the U.S. urging Secretary Mineta to reconsider political push for AMCV’s ‘‘Project Maritime Administration, kept the and move to complete construction of America.’’ The ‘‘Project America’’ ini- American taxpayer holding all the the Project America vessel. This would tiative included building two 1,900 pas- risk. involve an additional $350 million in senger cruise ships that were to enter To highlight just how critical the Title XI loan guarantees and the ves- service in Hawaii in 2004 and 2005. problems with Project America were at sel, upon completion, would be sold by These were to be the largest cruise the time this agreement was reached, I MARAD. ships ever built in the United States. want to read from a two-page summary To help push the program, the U.S. on the status of the project at that It is important to note, that with Maritime Administration (MARAD), in time that a lobbyist representing more than 80,000 new cruise ship berths the face of strong political support for American Classic Voyages inadvert- coming on line in the next four years, the project, approved a $1.1 billion title ently faxed to my office. It highlights MARAD expects that the vessel would XI loan guarantee for the construction the lagging construction schedule, the sell for $150 to $200 million less than it of these two vessels on April 8, 1999. claims for additional payments by would cost the American taxpayer to The New York Times article reports Ingalls, and the problems of dealing build. just how that political pressure was with a yard used to doing work under This week, MARAD will pay out felt at MARAD when it quotes a former the typically higher-cost DOD procure- $267.4 million in the first of several top MARAD official who insisted on ment standards. payments to be made to American anonymity saying. ‘‘We were supported One statement in the summary hints Classic Voyages’ creditors. The remain- to be promoting shipbuilding.’’ ‘‘The at AMCV’s recognition that a shipyard ing $105.7 million will be paid off in the maritime trade unions wanted jobs. So accustomed to dealing with the U.S. next 30 days as required waiting peri- there was a lot of political support.’’ Navy was ill-prepared for the commer- ods expire. I note for my colleagues ‘‘Project America’’ did indeed receive cial project, is very telling of how the this totals $366.7 million of the Amer- considerable political support over the customer views the shipyard’s ability ican taxpayers’ money. And what do we last several years as noted further in to meet the demands of commercial have to show them for these expendi- the New York Times article: ‘‘In 1996 work. The faxed summary reads, ‘‘For tures? A growing U.S.-flagged cruise

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00149 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S13922 CONGRESSIONAL RECORD — SENATE December 20, 2001 ship fleet? NO. A growing and competi- following the heavy loan losses in the that others lost significant amounts of tive U.S. shipbuilding industry? NO. 1980s, the program has cost taxpayers money as well.’’ That may be true; More U.S. mariner jobs at sea? NO. $400 million in default pay-outs and an however, unlike investors who chose to As a matter of act we have just the additional $296.4 million in appro- put their money at risk on American opposite. We have a smaller U.S.- priated funds as required by the Fed- Classic Voyages, the American tax- flagged cruise ship fleet, struggling eral Credit Reform Act. payer did not have a choice. They de- shipyards, and fewer mariners at sea Over the same period, the number of pend on us to do the right thing, but than ever before. As I have said many vessels in our oceangoing fleet shrank instead they have been saddled with an times before, we owe it to the taxpayer considerably. The number of bulk car- expenditure $366.7 million. I don’t per- to do better and make wiser decisions. riers in the U.S. merchant fleet sonally know all of AMCV’s investors, AMCV is but one example to Title XI dropped from 81 to 71, the number of but I would be willing to bet they loan guarantee defaults. The Title XI container ships dropped from 85 to 75, won’t make this same mistake again. maritime loan guarantee program has and the number of tankers dropped The question then becomes ‘‘will we?’’ experienced many problems and suf- from 205 to 154. I ask unanimous consent to print the fered financial difficulties throughout If the tale of AMCV’s losses is not New York Times article in the RECORD. its history. Since the beginning of this enough to stop pork barrel spending on There being no objection, the mate- year, the program has cost taxpayers pet projects that unfairly put tax- rial was ordered to be printed in the more than $339.1 million due to de- payers’ dollars at risk, the figures on RECORD, as follows: faults. the U.S. fleet size should clearly show [From the New York Times, Dec. 16, 2001] Let me provide some background for us that a program that artifically A VENTURE IN SHIPS ISARARE ZELL FLOP the record: Title XI of the Merchant props up a U.S. shipbuilding industry (By Leslie Wayne) Marine Act of 1936 authorizes the Sec- that is struggling to find its way in a Sam Zell may have the Midas touch when retary of Transportation to make loan tough world market is not working. it comes to investing in real estate. But his guarantees to finance the construction, I am sure my colleagues know I op- efforts on the high seas—with cruise ships— reconstruction, or reconditioning of el- pose any program that unnecessarily have ended in a debacle that has cost him igible export vessels and the mod- burdens American taxpayers and sub- over $100 million and taxpayers at least ernization and improvement of ship- sidizes industry. But, I am not alone in three times that. Mr. Zell is the chairman and largest share- yards. Under regulations governing the this view. I encourage my colleagues to holder of American Classic Voyages, which Title XI loan guarantee process, appli- look at the Administrations’ FY 2002 filed for bankruptcy protection in October. cants must meet certain economic budget request and its ‘‘Explanation of This came after the failure of an ambitious soundness criteria before receiving a Program Changes’’ for Title XI Loan project by Mr. Zell to build two 1,900-pas- commitment from MARAD. Even with Guarantee Program. It states, ‘‘In an senger cruise ships, the first that were to be controls in place, loan defaults during effort to trim corporate subsidies, the constructed in this country in 40 years. It the 1980’s reached into the billions of President’s Budget seeks no new fund- also came despite a boatload of government dollars and the program was halted. In ing for the Maritime Guaranteed Loan aid to Mr. Zell, including $1.08 billion in fed- eral loan guarantees. When it came to play- 1986, the worst year on record, defaults Subsidy Program.’’ ing the Washington game, Mr. Zell walked in pay-outs of $1.2 billion. I wrote to President Bush in June to away a big winner in the mid-1990’s. His The title XI program was revived in express my support for his proposal to cruise ship plan—called Project America— 1993 following the enactment of the zero-out the title XI program. In a re- wrapped up patriotism and politics and al- Federal Credit Reform Act and the Na- sponse to my letter prepared for the lowed him to construct his two huge ships by tional Shipbuilding and Shipyard Con- President by Mitchell Daniels, Director putting government money, not his, at risk. version Act. According to figures re- of the Office of Management and Budg- He also secured a 30-year monopoly on all cently provided by MARAD, the title et, Mr. Daniels stated: ‘‘The Adminis- cruise-ship traffic within the Hawaiian is- lands. XI program has cost taxpayers $400 tration concurs with your view that Helping him get this sweet deal were Sen- million in default payments since 1993. the Maritime Administration’s Mari- ator Trent Lott, the Republican minority Of that cost, MARAD has been able to time Guaranteed Loan Program con- leader, who wanted to land a big project for recover roughly 10 percent or $40 mil- stitutes an unwarranted corporate sub- the Ingalls shipyard in his home state of lion through the disposition of assets. sidy.’’ Mississippi, and Senator Daniel K. Inouye, Currently, the title XI program has The problems with AMCV’s loan the Hawaii Democrat, who engineered the an outstanding loan guarantee port- guarantees raise serious questions that exclusivity pact. Mr. Zell’s ships, American- folio of approximately $4.7 billion con- should be answered before we allow ad- made and with American crews, would be the sisting of 86 projects covering more ditional taxpayer funding to be com- only ones allowed to sail port-to-port within Hawaii; others must stop at foreign ports than 100 vessels, several hundred mitted in the form of loan guarantees. first, eating up time. barges, and 7 shipyard modernization I have written to the Department of ‘‘Obviously, I lost a lot of money,’’ Mr. Zell projects. What that means is the Amer- Transportation Inspector General (IG), said. ‘‘Everyone talks about the taxpayer ican taxpayer could, as happened in the Kenneth Mead, twice this year request- losses. But they never mention the fact that 1980’s, be burdened with billions of dol- ing his office look into Title XI loan others lost significant amounts of money as lars in debt if an industry downturn oc- guarantee defaults, including Amer- well. Shareholders lost a lot of money, and curs. With that much at risk, I think ican Classic Voyages, and MARAD’s that’s very unfortunate.’’ Last year, with American Classic shares we owe it to the American taxpayers to oversight of the title XI program. trading at $36, Mr. Zell’s 3.8 million shares do all we can to ensure that adequate I understand that the Inspector Gen- were worth $137 million. This fall, the shores protections are in place. eral has directed such investigations to were delisted from Nasdaq when they were Our Nation has had a strong and get underway. I hope he will be able to trading at 45 cents, chopping Mr. Zell’s stake proud maritime history. I fear our mar- determine if MARAD has acted appro- to $1.7 million. The government, meanwhile, itime future, in the U.S. however, is priately to protect the taxpayer in is looking at losses of $367 million from jeopardized due to a dependence on these matters. We need to learn if American Classic, which also operates four government programs that do not fos- Ingalls, Northrop Grumman, and Amer- paddlewheel steamboats through its Delta Queen Steamboat subsidiary. ter a progressive and competitive atti- ican Classic voyages fully and accu- The failure has incurred the wrath of Sen- tude in what has clearly become a glob- rately presented the difficulties they ator John McCain, Republican of Arizona, al market. This is especially true of faced in building Project America to who called for an investigation, which the our larger shipyards. MARAD while seeking to both secure inspector general of the Transportation De- According to MARAD, the purpose of and restructure the title XI loan guar- partment has undertaken. the title XI program is to promote the antee for this project. Rob Freeman, a staff member of the Sen- growth and modernization of the U.S. I want to close by making one last ate Commerce Committee, where Mr. McCain is the ranking Republican, said: ‘‘It merchant marine and U.S. shipyards. point on the New York Times article. was a bad idea. The taxpayer took all the Yet, there is little if any evidence that It quotes AMCV’s largest investor say- risk.’’ either has occurred. Since 1993, when ing, ‘‘Everyone talks about taxpayers’ Mr. Zell got such government largess by the title XI program was resurrected losses. But they never mention the fact being the right person in the right place

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00150 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S13923 when the United States Maritime Adminis- tive JACKSON-LEE, I sent a letter to At- s÷According to some recent news re- tration wanted to revive the domestic ship- torney General Ashcroft requesting ports relying on sources in the Justice building industry, which had been beaten basic information about the detention Department, other than Zacarias down by lower-cost foreign competitors. of over 1,100 individuals in connection Moussaoui, none of the over 1,100 indi- Without aid, American Classic executives say, their project would never have gotten with the investigation of the Sep- viduals who have been detained are be- off the ground. tember 11 attacks. We wanted to know lieved to be involved with the Sep- ‘‘We were supposed to be promoting ship- who is being detained and why; the tember 11 attacks. It now appears that building,’’ said a former top Maritime Ad- basis for continuing to hold individuals the Department believes that at least ministration official, who insisted on ano- who have been cleared of any connec- Mr. Moussaoui is connected to Sep- nymity. ‘‘Inouye and the whole state wanted tion to terrorism; and the identity and tember 11. And only 10–15 of the detain- to grow the cruise business. The maritime contact information for lawyers rep- ees are believed to have any links to trade unions wanted jobs. So there was a lot resenting detainees. We also wanted in- the al-Qaida organization. Further- of political support.’’ Mr. Zell never lobbied the administration formation regarding the government’s more, according to senior Justice De- directly; his top executives did. In 1996 and efforts to seal or close proceedings and partment officials quoted in the press, 1997, American Classic executives met with its legal justification for doing so. apart from Moussaoui, not a single one members of Congress, labor leaders and ship- I thank and commend Senator of the over 550 people detained on im- yard owners in an all-out effort to promote LEAHY, the distinguished Chairman of migration charges is linked to al- the project in Washington. That effort was the Judiciary Committee, for his ef- Qaida. This leads us to a simple, crit- backed by campaign contributions from Mr. forts and leadership. Chairman LEAHY ical question: Who are the remaining Zell and American Classic to Mr. Lott, Mr. held four oversight hearings on the hundreds of people and why have they Inouye and other crucial members of Con- Justice Department’s actions, includ- gress. been detained? It paid off. The $1.08 billion loan guarantee ing one hearing that I chaired focusing The Attorney General undoubtedly was the largest the Maritime Administration on the Department’s detention of indi- faces an enormous challenge: He must had ever approved, and it allowed American viduals. Those hearings culminated work to find the perpetrators of the Classic to enter debt markets that would with the testimony of the Attorney September 11 attacks and bring them otherwise be closed to it—and at rates com- General himself before the Committee. to justice, while, at the same time, pro- parable to government debt. American Clas- I come to the floor today because I tect Americans from future attacks. I sic was also allowed to buy an old foreign- remain dissatisfied with the Adminis- fully support our law enforcement offi- made ship and use it for Hawaii cruises while tration’s response to our request for in- cials in their tireless efforts to leave no the two new ship were under construction, giving the company an exemption from a law formation about the detainees. Seven stone unturned as they investigate the prohibiting foreign carriers from that route. weeks after our letter, the Department September 11 attacks and strive to pro- But the souring economic picture of 2001 of Justice has given flimsy and con- tect our nation from future attacks. halted these ambitions. By last summer, the tradictory excuses but no convincing But, as the Attorney General moves company had cash-flow problems, and the legal justification for keeping secret forward in our fight against terrorism, downturn in tourism after the terrorist at- the identities of the over 550 people it he has a responsibility to ensure that tacks pushed it over the edge. ‘‘Sept. 11 just now holds in custody for minor immi- the constitutional foundations of our put it away,’’ Mr. Zell said. http:// gration violations. nation are not eroded. The torch of www.nytimes.com In addition, the Department has not Lady Liberty must continue to shine f yet provided any information on per- on our Nation. haps hundreds of additional people who This is not just an abstract or theo- THE JUSTICE DEPARTMENT’S DE- have been detained. These people retical concern. Our Constitution pro- TENTION OF OVER 1,100 INDIVID- might still be being held on state or tects the people of this country from UALS IN CONNECTION WITH THE local charges, or without charges, or the arbitrary or unfair deployment of SEPTEMBER 11 INVESTIGATION they might have been released. Nor has the awesome power of the Federal Gov- Mr. FEINGOLD. Mr. President, I was the Department given definite informa- ernment. The Federal Government has pleased to hear the Attorney General’s tion on the number of individuals held the power to ruin the lives of innocent announcement of the first indictment as material witnesses. people. The checks and balances of our of a co-conspirator to the terrorist at- After our hearings last week, I am Constitution are crucial in protecting tacks on our Nation on September 11. more convinced than ever that Con- the governed from an unfair govern- Zacarias Moussaoui, who was detained gress and the American people are enti- ment. by the FBI for carrying a false passport tled to this information to assess the While the Justice Department re- before September 11 and has been in Justice Department’s assertions that cently began releasing some informa- custody since that time, has been in- everyone in custody has access to legal tion about the people who have been dicted by a federal grand jury in Vir- counsel and is being treated fairly. detained on federal criminal charges or ginia. I commend the Justice Depart- In the days and weeks after the at- immigration violations, we still do not ment, the FBI, and our intelligence tacks, the Department made announce- have a full picture of who is being de- services, for their tireless work in ments about the status of the inves- tained and why. And there are reports seeking to bring Moussaoui and other tigation, including tallies of the num- that detainees have been denied their terrorists to justice. ber of individuals detained. In fact, on fundamental right to due process of We have known about Mr. Moussaoui October 25, the Attorney General an- law, including access to counsel, and since a few short days after September nounced that ‘‘[t]o date, our anti-ter- have suffered serious bodily injury. We 11, but we still do not know the identi- rorism offensive has arrested or de- simply cannot tell if those cases are ties of hundreds of other individuals tained nearly 1,000 individuals as part aberrations or an indication of sys- still held in detention, the vast major- of the September 11 investigation.’’ temic problems, if the Justice Depart- ity of whom have no link to September In early November, however, the De- ment will not release further informa- 11 or al-Qaida. partment reversed course and decided tion about those being held in custody. And so I rise today to speak about it would no longer publicly release The Attorney General has repeatedly the Justice Department’s detention of comprehensive tallies of the number of and emphatically asserted that he is these individuals in connection with its individuals detained in connection acting with constitutional restraint. investigation of the September 11 at- with the September 11 investigation He even went so far as to suggest last tacks and the administration’s contin- and that it would limit its counts to week that those who question his ac- ued refusal to provide a full accounting those held on federal criminal or immi- tions are giving aid and comfort to the of who these people are and why they gration violations. Thus, it would no terrorists. I reject that charge in the have been detained. longer keep track of those held on strongest terms. And I further believe On October 31, along with Senator state or local charges, nor would it in- that the Department of Justice has a LEAHY, Senator KENNEDY, Representa- dicate how many people have been re- responsibility to release sufficient in- tive CONYERS, Representative NADLER, leased after being detained or have formation about the investigation and Representative SCOTT, and Representa- been held without charges being filed. the detainees to allow Congress and the

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00151 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S13924 CONGRESSIONAL RECORD — SENATE December 20, 2001 American people to decide whether the identity or why he was being detained And that’s exactly why this informa- Department has acted appropriately a secret or try to prevent its disclo- tion has been requested. There are seri- and consistent with the Constitution. sure. ous questions about whether individ- It is not disloyal to view the govern- Moreover, the claim that detainees uals who have been detained have been ment’s assertions with skepticism. It is can self-identify rings somewhat hol- denied their constitutional right to due the American way. low, since we heard during the hearing process of law. And the kind of infor- Just before Thanksgiving, in re- on detainees that some of these indi- mation we have requested will help sponse to our October 31 letter, the De- viduals have been denied access to law- Congress evaluate whether the Justice partment provided copies of the com- yers or family, for days or weeks at a Department has deprived any detainee plaints or indictments for about 46 peo- time. Ali Al-Maqtari, a Yemeni na- of his or her constitutional rights. We ple held on federal criminal charges. It tional married to a U.S. citizen, testi- seek this information not to embarrass also provided similar information on fied that for most of the nearly two or harass the detainees but to provide about 49 people held on immigration months he was detained, he was al- oversight of the Justice Department’s violations, but edited out their identi- lowed only one phone call, of no more treatment of them. ties. Then, three weeks ago, the Attor- than 15 minutes, per week. He was To make matters worse and further ney General announced the number and never charged with perpetrating, aid- thwart public or congressional scrutiny identities of all persons held on federal ing or abetting terrorism or with any of the Department’s actions, we also criminal charges and the number, but crime whatsoever, and was eventually learned during the oversight hearings not the identities, of persons held on released on bond. that the Attorney General has taken immigration charges. The total num- Dr. Al Bader Al-Hazmi was held in- the extraordinary step of closing all ber of detainees is roughly 600 individ- communicado—denied access to his immigration proceedings involving uals. But the Department continues to lawyer or family—for seven days. After about 550 of the 1,100 or more individ- refuse to identify the over 550 persons nearly two weeks in detention, Dr. Al- uals who have been detained. This held for immigration violations, or Hazmi was released with no charges means no visitors, no family and no provide the number and identity of per- filed against him. press are allowed. As Mr. Al-Maqtari’s sons held without charge, the number Tarek Mohamed Fayad is an Egyp- attorney Michael Boyle has said, this and identities of persons held on state tian national and dentist residing in secrecy taints the proceedings, even or local charges, or even the number of California. He was picked up by the when, in cases like Mr. Al-Maqtari’s, material witnesses. FBI on September 13 and then trans- the FBI has cleared the immigrant of In statements to the press and in the ferred to the Brooklyn Detention Cen- any link to terrorism whatsoever. This Attorney General’s and his associates’ ter in New York City, where he re- should give us all pause. People inno- testimony before Congress, the Justice mains to this day. According to the cent of any connection to terrorism are Department has cited a number of rea- Wall Street Journal, it took his lawyer being branded terrorists and being sons for its refusal to provide addi- one month before she was able to lo- evaluated in secret proceedings. This is tional information. cate and talk to him. not right. Very troubling is the Department’s Unfortunately, there could be many In sum, the various reasons cited by assertion that those being held for im- more cases like these three I have men- the Department for not disclosing in- migration violations have violated the tioned. But if the Justice Department formation about the detainees are con- law and therefore ‘‘do not belong in the will not tell the public who is in deten- tradictory and lack legal justification. country.’’ Without full information tion, we can never know the cir- I once again urge the Administration about who is being detained and why, cumstances of their cases. to release basic information about the we cannot accept blindly this sugges- It is apparent that the option of ‘self- people now held in federal custody, ex- tion that each and every immigration identification’ is not a real option. In- cept for the identities of material wit- detainee does not deserve to be in the deed, it borders on the fanciful to sug- nesses. And the Administration should country. Do all of these immigration gest that all the detainees are in a po- also give us whatever help it can in violations merit detention without sition to self-identify. Rather, there identifying people who may be held in bond and deportation? I doubt it, as the are serious questions about whether state custody. Rather than expending hearing on detainees the Judiciary the Department has denied those de- its resources trying to keep these de- Committee held showed that some are tained their due process rights, includ- tentions secret, the Administration very minor violations, which under ing access to counsel. should show that it has confidence in normal circumstances can be cleared The Department has also said that it what it is doing by opening up its ac- up with a phone call or by completing is prohibited by law from disclosing the tions to public scrutiny. some additional paperwork. information. But when I questioned This is not simply a question of con- Another reason the Attorney General both Assistant Attorney General stitutional rights, it is a question of ef- has cited for refusing to disclose infor- Chertoff and later the Attorney Gen- fective law enforcement. It became mation about detainees is that he does eral himself, they admitted that there clear during our hearing on the detain- not want to aid Osama bin Laden in de- is no law that provides for a blanket ees that the roadblocks to individuals termining which of his associates we prohibition on the disclosure of infor- consulting with counsel not only cause have in custody. Yet, the Attorney mation about individuals who have great hardship to the detainees and General and Assistant Attorney Gen- been detained. violate their rights, but also hinder the eral Michael Chertoff have said noth- The Attorney General cited a section investigation and waste the resources ing prevents the detainees from ‘‘self- of the Privacy Act, as justification for of law enforcement on people who have identifying.’’ This, it strikes me, en- not providing this information. The no connection with terrorism. As Mr. tirely undercuts the argument that Privacy Act, however, only applies to Goldstein, an attorney for Dr. Al- giving out this information will help citizens and legal permanent residents. Hazmi, testified: bin Laden. If the Justice Department It does not apply to aliens who are not Dr. Al Hazmi’s attorneys had notified the really thought it would, it would never legal permanent residents. From the appropriate law enforcement agencies and permit self-identification and would information provided by the Depart- the Department of Justice in writing, re- not have released the names of those 93 ment thus far, we know the vast major- questing the whereabouts of their client and individuals who have been charged ity of the detainees are not permanent expressing their desire to communicate with him. Despite these efforts—and despite Dr. with Federal crimes. residents. Al Hazmi’s repeated requests to consult with Nor would the Department have re- Furthermore, case law under the his counsel—Federal authorities stonewalled leased the name of Zacarias Moussaoui Freedom of Information Act explicitly and continued to interrogate Dr. Al Hazmi in and the basis for his detention. The allows the government to release pri- the absence of his counsel. public has known about Moussaoui and vate information about even citizens Mr. Goldstein added: his alleged role in September 11 and al- and legal permanent residents where By denying Dr. Al-Hazmi access to his re- Qaida since shortly after the attacks. that information reflects on the per- tained counsel, Federal law enforcement offi- The Department never tried to keep his formance of the agency. cials not only violated my clients rights,

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00152 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S13925 they deprived themselves of valuable infor- of this evidence that we should take its lation, for the commission to review mation and documentation that would have assertions about the treatment of the this situation and determine whether eliminated many of their concerns. Their ob- detainees on faith, the Administration it is necessary or appropriate in the structionism prolonged the investigative furthers the appearance that it has public interest, and consistent with the process, wasting valuable time and precious resources. something to hide. protection of investors, to use the com- I hope that we are not in some sense mission’s general exemptive authority I was gratified that a number of my following those who rounded up over to extend the effective date for the re- colleagues expressed concern about the 120,000 Japanese Americans and thou- duction of transaction fees for a brief treatment of Mr. Al Maqtari and Mr. sands of German and Italian Americans period as may be reasonably necessary Al-Hazmi, and particularly about the during World War II. The rhetoric we in order for market participants to difficulties they had in communicating hear today rings awfully familiar. We comply with the new law fully and with counsel. I have focused in recent must not return to the time when im- without disruption. weeks on the issue of access to counsel migrants who provided so much to our Mr. GRAMM. I believe that the com- because I believe this issue is at the nation were suddenly branded ‘‘enemy mission can and should alleviate this center of how our justice system is aliens’’ and deprived of their liberty problem. When the Senate passed its treating these detainees. This is the and other fundamental rights. version of fee reduction legislation in issue that takes the concern over the Let us not repeat these mistakes of March, the bill, S. 143, provided for a fate of the detainees from an abstract history. I again call on the Administra- delay of 30 days in the effective date debate over civil liberties versus secu- tion to fulfill its responsibility to pro- for transaction fee reduction in order rity to a very specific and very impor- tect the Constitution in its pursuit of to provide securities firms and markets tant inquiry about how our govern- liberty and justice for all. It can begin the necessary time to adjust their com- ment actions affect the lives of hun- by identifying those now held in Fed- puter systems to accommodate the dreds of people. eral Custody and providing the other rate change. This language was What happened to Mr. Al Maqtari information requested in our October changed when the bill was passed by and his wife Tiffany had a severe im- 31 letter. the House in June, in order to comply pact on their well being. What has hap- f with budget-scoring requirements. At pened to hundreds of other detainees that time, it was envisioned that con- INVESTOR AND CAPITAL MARKETS has similarly affected them. We are not gressional action on the bill would be FEE RELIEF ACT just engaged in a hypothetical law completed well before the start of the school exam question or a mock crisis Mr. SARBANES. Mr. President, I rise new fiscal year in October, and that where we each play a role. We are talk- to address an issue which I believe may the effective date provision would not ing about taking the liberty of real merit the attention of the Securities cause administrative problems for the people, with real families and real and Exchange Commission following securities industry. lives. It is not enough to say that some enactment of H.R. 1088, the Investor It is not our intention to impose an liberties have to be sacrificed in these and Capital Markets Fee Relief Act. administrative requirement that would difficult times. Rather, we must be That bill has two main impacts. It be impossible for industry to meet. In able to determine whether the actions authorizes the commission to raise the order to comply with congressional in- of the Department have been reason- salaries of its staff to levels that are on tent and to make this provision work- able, and whether the sacrifices that a par with the compensation paid by able, I hope that the commission will are being requested are justified. other Federal financial regulators. Our consider using its general exemptive That is where lawyers come in. With securities markets are the envy of the authority under Section 36 of the Secu- a lawyer, a detainee can much more world. It is important that the regu- rities Exchange Act of 1934 to extend readily answer concerns about his be- lator of those markets be in a favorable the effective date for reduction of havior, provide documents to show his position to attract and retain qualified transaction fees. whereabouts during crucial periods, employees. Enacting pay parity con- Mr. KERRY. Mr. President, I speak and generally provide information to tributes towards this goal and will re- today on S. 1499, the American Small show that he is not a terrorist. Law- sult in enhanced supervision of the se- Business Emergency Relief and Recov- yers can help determine whether the curities markets. ery Act of 2001. This legislation pro- extreme step of detention without bond In addition, the bill reduces certain vides help to small businesses hurt by is warranted. And they can explain fees charged to investors and issuers. the events of September 11th and to what is going on to the detainee and Section 11 of the bill provides an effec- small businesses suffering in the weak- the public. I asked the Attorney Gen- tive date for reduction of transaction ened economy. Senator BOND and I eral at our hearing to take steps to en- fees on the later of, one, the first day have spent months trying to uncover sure that everyone under detention of fiscal year 2002; or two, 30 days after who is behind the serial holds that who wants a lawyer can obtain one. the date on which a regular appropria- have been placed on this emergency And I asked him to determine how tion to the Commission for such fiscal legislation and work out disagree- many of the detainees are not rep- year is enacted. Because the regular ments. resented by counsel. I hope he will fol- appropriation to the Commission (H.R. This bill hasn’t been ‘‘hustled low through on our discussion. It is es- 2500) was signed into law on November through,’’ as some contend. It was sential that anyone who is being held 28, 2001, Public Law 107–77, the effect of drafted with the input of small busi- have counsel and be able to commu- Section 11 is to provide an effective ness organizations, trade associations nicate with counsel. date for transaction fee reduction of and SBA’s lending and counseling part- The Attorney General has said rea- December 28, 2001, regardless of when ners through more than 30 meetings soned discourse should prevail. I agree. the bill is enacted. and conference calls—conference calls But in order to have that reasoned dis- The legislation was passed by the because we couldn’t ask folks to fly in course, the Justice Department should Senate on December 20, 2001, and still the immediate weeks after the attacks. provide Congress and the American must be signed by the President. Thus, It is cosponsored by 18 of the Small people with enough information to pro- the industry will have at most only a Business Committee’s 19 members. And mote a fair and open dialogue and few days to comply with the law. I overall 62, senators, including 20 Re- make our oversight meaningful. Our have been informed by some market publicans, have joined me in cospon- hearings showed that not all the de- participants that this may not allow soring S. 1499. tainees have adequate access to coun- them adequate time to re-program and On the House side, the Committee on sel. They showed, at least, that the test their computers to make certain Small Business passed the companion Congress has reason to test and exam- that the transition to the new fee to S. 1499. We attempted to move this ine the Administration’s assertions structure goes smoothly and without bill quickly because it is emergency that everyone’s constitutional rights flaws. legislation. It is a good bill because it are being respected in this investiga- I believe it would be appropriate, and can do a lot for a lot of people. It is tion. By continually saying in the face consistent with the intent of this legis- being held because of shameful politics.

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00153 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S13926 CONGRESSIONAL RECORD — SENATE December 20, 2001 I say let’s bring this bill up for a vote. business lenders by reducing the lend- Journal. I read this last week on the Small businesses have a right to know ers’ loan fee by more than one-tenth of floor but think it is absolutely worth exactly who is working against them one percent. Despite numerous articles repeating. Wall Street Journal, Tues- and who is working for them. in reputable newspapers such as the day, November 6th, 2001. Here are the So what happened? On October 15th, New York Times, it is the Administra- words of Mr. John Rutledge, Chairman when this legislation had cleared both tion’s view that lenders do not need in- of Rutledge Capital in New Canaan, CT, cloakrooms for passage, the Adminis- centives to make small business loans and a former economic advisor to the tration had the Republican cloakroom in this economic downturn. Senator Reagan administration: put a last-minute hold on the bill so Bond and I, as well as the 61 other co- Interest rate reductions alone are not the Administration could announce its sponsors of S. 1499 believe that both enough to jump-start this economy. We need approach the next day. The next morn- lenders and small business borrowers to make sure cheaper credit reaches the ing, the Administration lifted its hold, need a break to encourage these loans companies that need it. . . . The Fed is cut- ting interest rates—but the money isn’t but a new hold was immediately placed to be made. With this capital, small reaching capital-starved small businesses be- by the junior Senator from Arizona, businesses will stay in business and cause Treasury regulators are cracking down which he stated in the press was on be- continue to employ people. Without it, on bank loans. Credit rationing, not interest half of the Administration. Last week, we can expect greater business failures rates, is the real problem with the economy. the Senator from Arizona lifted his and bankruptcies. . . . This problem didn’t start on September hold, and I thank him for that, but un- Senator BOND and I asked them to 11th. For more than a year U.S. banks have fortunately, we then learned that there meet us halfway, and they said no. We been closed for business lending. Unless the was one or more anonymous Repub- asked them to give us alternative lan- current Bush administration takes steps to restore bank lending to small businesses and lican holds on the bill. This approach guage, and they didn’t give us any. We heal the asset markets now, the economy makes it very difficult to try to work spent more than 20 hours negotiating will stay weak. out objections. Two other Republican on this bill and it appears as if the Ad- They ignore surveys published in the senators told me that their objections ministration never had any intention American Banker. On October 31, a sur- were solely based on the Administra- of finding common ground. It appears vey of 80 lenders of all sizes by Phoenix tion’s problems with the bill. There- as if it was an exercise in delay. Management Services found that 42 fore, I directed my staff to meet with Let me describe briefly where I dis- percent ‘‘would be less likely to lend to the Administration, learn their con- agree with the administration about small businesses, which they view as cerns and try to reach a compromise so how to help small businesses battling more risky because they foresee no im- that this bill could pass before the re- bankruptcy and employee layoffs trig- provement in the economy until late cess. gered by the terrorist attacks and eco- 2002 at the earliest.’’ The article from Last night, Senator BOND and I nomic downturn. The administration November validated what before was joined our staffs as they met with rep- believes that all assistance should be characterized as ‘‘less likely to lend to resentatives of the Administration for delivered through the SBA’s disaster small businesses,’’ by reporting lenders the eighth time. I am very dis- loans, which are administered through had actually ‘‘tightened their stand- appointed to report that the Adminis- only four regional offices. From talk- ards’’ to small firms by more than 40 tration came to the table and said ing to small businesses and SBA lend- percent. that, although we had made some ers, Senator BOND and I have concluded Still, the administration maintains progress, it would not negotiate fur- that small businesses would be better there’s no credit crunch and that provi- ther. The ultimatum was for us to served through a combination of dis- sions in S. 1499 to provide improved ac- strike entire sections and provisions aster loans and government guaranteed cess to credit are too expensive and un- critical to the relief provisions of our loans. Government guaranteed loans necessary. bill. are almost five times cheaper than The administration has also raised Specifically the Administration’s what the administration has proposed, concerns about the cost of the legisla- representatives said: have less exposure for the taxpayer, tion, which has been unofficially scored ‘‘We cannot work with you on Sec- and can reach more small business by Congressional Budget Office at $860 tion 6.’’ That is the entire stimulus owners because they are delivered million. Let me be clear, that’s mil- portion of S. 1499. As such, we were through more than 5,000 private sector lion, not billion. $860 million to help all asked to eliminate the provision that lenders who know their communities of our Nation’s small businesses. Yet would make it less expensive for small and have experience making SBA the administration objects to this, businesses to get loans and provide in- loans. Our proposal combines public when they have sent up requests for centives to lenders to make these and private sector approaches to en- billions in tax cuts for a select few loans. We were told that, in their view, sure small businesses receive the max- large corporations, and when the ad- there is no credit crunch for small imum amount of assistance. ministration’s approach costs almost businesses. We will never agree on each other’s five times as much to help fewer small ‘‘We cannot work with you on Sec- approach, mostly because the adminis- businesses. The bill’s $860 million cost tion 10.’’ Section 10 establishes a fund tration has told us in meeting after is too much to invest in the nation’s to help small businesses that were shut meeting that it does not believe there’s small businesses, according to the ad- out of their Federal work sites or have a credit crunch and that small busi- ministration’s position. suffered delays in accessing those sites nesses are not having difficulty in ac- I regret very much for small busi- because of national security measures. cessing credit. They don’t acknowledge nesses and their employees that their We offered to set it up in any way they articles, surveys and testimonials that needs are being trivialized. I admire thought it could work and to reduce its state it has become harder and more Senator BOND and the Chairman of the $100 million authorization level, but expensive for small businesses, particu- House Committee on Small Business the Administration refused to work larly minority and women-owned small for showing leadership in their party to with us on that section. businesses, to get loans over the past help small businesses. I am very glad ‘‘We cannot work with you on refi- year. that we can work in such a strong bi- nancing non-SBA business debt.’’ This They ignore the surveys by the Fed- partisan fashion to fight for small busi- was an important part of the disaster eral Reserve that say, ‘‘40 percent of nesses. I thank the 62 members of this relief that S. 1499 targets to those at domestic banks reported tighter stand- body who have come together in a bi- ground zero in NY and VA, those lo- ards [when lending to small businesses] partisan fashion to support this legisla- cated in airports and those adversely over the past three months, up from 32 tion and our nation’s small businesses. affected by Federal security actions. percent in August.’’ Please keep in Let me note here that the White The Administration was unwilling to mind that this survey was released in House said in our meetings that 62 co- make this help available to these dis- October and doesn’t even capture the sponsors ‘‘means nothing—that it hap- aster victims. affects of September 11. pens all the time up here.’’ I find that The administration can not go fur- They ignore articles from economic cavalier considering that, according to ther in providing an incentive to small authorities such as the Wall Street the Congressional Research Service,

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00154 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S13927 only 13 out of 1,839 bills introduced in to make sure cheaper credit reaches the Deprived of working capital, U.S. compa- the 107th Congress have more than 60 companies that need it. Credit rationing, not nies have been trying to shrink their way to cosponsors. interest rates, is the real problem with the solvency, by reducing inventory, stretching The support for this bill is strong and economy. vendors and laying off workers. This has cre- The Fed’s monetary stimulus has been hi- ated the sharpest drop in industrial output bipartisan. I am very sorry that those jacked by the bank regulators. these credit in 20 years. Senators supporting S. 1499 have not highwaymen aren’t bad guys, they are just Ironically, when the Fed became alarmed had the chance to cast a vote in favor doing their jobs. The Treasury Department’s at the shrinking economy and began to cut of this emergency legislation before Office of the Comptroller of the Currency interest rate sin January, the bank exam- they go home for the holidays and visit (OCC), which is charged with regulating fed- iners, who report to a different master, with the small businesses in their erally chartered banks, has a different agen- tightened further. The business loan market da from the Fed. Its job is to protect bank is far tighter today than it was then. Two states. Small businesses deserve some capital, period. It does so with an army of good news. As for right now, we can years ago banks were willing to lend a good bank examiners, who wield the blunt instru- company four to five times Ebitda, or earn- only tell them what I told the adminis- ment of credit rationing inside banks. For ings before interest, taxes, depreciation and tration in our meetings last night: more than a year, these regulators have been amortization. Today banks quote a market When we come back in January, we in- diverting bank reserves into Treasury securi- of just over two times Ebitda but money is tend to file cloture on this bill and ties instead of business loans, in hopes of re- not, in fact available even at that level. take a vote. storing bank capital that was damaged by A further irony is that although banks In closing, let me thank the many technology lending. Companies that rely on have refused to lend to businesses, they have banks for working capital have been sucking been throwing money at the consumer groups who have fought so hard on be- air. half of their members to get this legis- through mortgage and equity credit lines. To restore growth we need a functioning This has produced a two-speed economy that lation enacted. They have dem- banking system. This will require a level of has left many companies unable to produce onstrated all that is great about grass- coordination the Treasury and the Fed have products or to ship orders for lack of work- seldom achieved. But the current consensus roots action and active involvement in ing capital. Stimulating consumer spending for growth could give President Bush the po- the political and legislative process. won’t solve this problem; we need a func- litical Roto-Rooter he needs to clear out the In addition to including for the tioning bank market. conduit. The last period of nonprice credit rationing record the list of these groups, I also This problem didn’t start on Sept. 11. For ask unanimous consent to have printed more than a year U.S. Banks have been was the 1990–92 credit crunch. It caused tre- articles and letters from small business closed for business lending. The story reads a mendous damage to the economy and cost groups regarding the current credit lot like the real-estate blowout of the early the first President Bush his re-election bid. It ended only after the RTC had finished its crunch, the need for equitable adjust- 1990s that ended with Resolution Trust Corp. auctions, except this time it was undisci- auctions and the property and banking mar- ment provisions for our small business kets had stabilized. contractors and other provisions of S. plined technology investments that did us in. In the three years leading up to 2000, com- The lesson of that experience—that the 1499 be printed in the RECORD. mercial banks loaned enormous sums of economy is only as healthy as its balance There being no objection, the mate- money to telecom, cable and technology sheets—is as true today as it was a decade rial was ordered to be printed in the companies to finance, capital-spending pro- ago. Unless the current Bush administration RECORD, as follows: grams. These loans weren’t backed by assets, takes steps to restore bank lending to small but were based on projections that all three businesses and heal the asset markets now, S. 1499 SUPPORTERS sectors would have sales growth rates sev- the economy will stay weak. Airport Ground Transportation Associa- eral times that of the economy for many The White House can do three things to tion, American Bus Association, American years to come. put the economy back on sound footing. Subcontractors Association, Associated Gen- Last summer it became clear that sales First, it should bring the Fed and the eral Contractors of America, Association of growth would not meet those heady projec- Comptroller of the Currency together to co- Women’s Business Centers, CDC Small Busi- tions. Instead of the 14% growth projected by ordinate efforts to restore bank lending. This ness Finance, Chicago Association of Neigh- analysts for telecoms this year, for example, can be done very quickly and would not re- borhood Development Organizations, Citi- actual sales will shrink. Companies without quire new legislation. zens Financial Group, RI, Clovis Community revenues don’t make interest payments. And Second, it should introduce legislation to Bank, CA, Coastal Enterprises, ME. so by the fall of 2000, OCC teams were forcing transfer the regulation of federally chartered County of San Diego, Delaware Commu- regional banks to downgrade loans and re- banks from the Treasury to the Fed, which nity Reinvestment Act Council, Fairness in duce business lending. would make monetary policy function more Rural Lending, Florida Atlantic University The Fed is cutting interest rates—but the smoothly and prevent future credit-crunch Small Business Development Center, Heli- money isn’t reaching capital-starved small situations. copter Association, HUBZone Contractors businesses because Treasury regulators are Third, the White House should make it, National Council, National Association of cracking down on bank loans. clear to Congressional Democrats that the Government Guaranteed Lenders, National Here’s the catch. The loans to technology price for support of their huge spending Community Reinvestment Coalition, Na- companies were generally unrecoverable. projects is fast action on a lower capital- tional League of Cities, National Limousine The tech firms had spent the funds on cur- gains tax rate and further action to lower Association. rent operating expenses or to purchase assets marginal income tax rates, both of which National Restaurant Association, National with lots of goodwill but little resale value. would increase asset market values and im- Small Business United, National Tour Asso- So the banks turned to the one place they prove bank capital. ciation, New Jersey Citizen Action, Rural could get money back: reducing the revolv- Forceful action to Roto-Rooter the busi- Housing Institute, Rural Opportunities, Self ing credit facilities of their small business ness loan pipeline is one thing we can do to Help Credit Union, Small Business Legisla- customers. make the economy grow again. tive Council. I got a personal glimpse of all this last Oc- U.S. Conference of Mayors, United Motor- tober, when a team of bankers visited our of- [From The American Banker, Wed., Nov. 14, coach Association, United States Air Tour fice to inform us their bank had decided to 2001] reduce the credit rating of, as well as cash- Association, United States Chamber of Com- (By Rob Garver) merce, United States Tour Operator Associa- flow loans to, one of the private companies The slowdown in lending activity, evident tion, Women’s Business Development Center. we own, in preparation for a bank examiner audit the following week. Our loan went through much of the year, sharpened in re- [From the Wall Street Journal, Tues., Nov. 6, from a ‘‘five’’ to a ‘‘six’’ on their 10-point in- cent months through diminished demand and 2001] ternal risk management system, which tighter lending standards even as banks ad- meant the company could no longer use its dressed a new round of credit quality prob- A CREDIT CRUNCH IMPERILS THE ECONOMY acquisition credit line. This caused the com- lems in their loan portfolios. (By John Rutledge) pany to halt discussions with an acquisition According to the Federal Reserve Board’s When the Federal Open Market Committee target and to book the costs incurred up to latest survey of senior loan officers, which meets today it won’t be arguing over wheth- that point as current expenses. was released Tuesday, nearly half the banks er we are in recession. The economy is weak- Other companies had it worse, with re- had lowered internal ratings on at least 5% er today than at any time since 1982. It will duced revolving credit facilities and in- of their commercial lending portfolios. almost certainly end the meeting by voting creased fees. Some companies, under pres- Internal loan ratings reflect a bank’s as- to reduce interest rates again. This will bear sure from their banks to raise equity capital, sessment of the risk that the borrower will the same results as all the previous rate cuts have been forced to sell control in an illiquid default. The most likely borrowers to be this year: none. equity market. Others have been forced into downgraded in the three-month period Interest rate reductions alone are not filing for bankruptcy protection or liquida- through October were commercial airlines enough to jump-start this economy. We need tion. and nondefense aerospace firms, followed

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00155 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S13928 CONGRESSIONAL RECORD — SENATE December 20, 2001 closely by travel and leisure-related busi- by the Small Business Administration: 7(a) probably adjourn by the end of this week and nesses such as hotels and restaurants. The working capital loans; and 504 loans for not return until late January, Coratolo said. survey of the chief credit officers of 57 do- equipment and building improvements. It ‘‘Small businesses need the relief now, and mestic banks and 22 U.S. branches of foreign would also lower fees for borrowers and SBA actually they needed it last month,’’ he said. institutions also found that most U.S. banks lenders. ‘‘The existing programs and loan programs tightened their underwriting standards for Sen. John Kerry, a Democrat from Massa- that were meant to act as a safety net—some commercial loans, and that commercial bor- chusetts and chairman of the Senate small- are not there and some don’t reach out far rowers, for their part, were less willing to go business committee, introduced the bill enough to help those that really need the into debt. Terms and conditions for con- more than two months ago in hopes of mov- help.’’ sumer loans tightened slightly, the survey ing it through quickly. It has 60 co-sponsors SBA loans are guaranteed by the govern- found, and demand for consumer loans fell. in the Senate and dozens of backers in small- ment, so lenders are more apt to give them, The survey, taken four to six times a year, business associations. Kerry said. typically contains a number of ‘‘special ‘‘I’m asking my Republican colleague to While he opposes the small-business bill, questions’’ in addition to standard queries stop obstructing this legislation,’’ Kerry Kyl is backing a $500 per person tax credit about loan terms, conditions, and demand. said. for travel-related expenses. The special questions, which usually address The Congressional Budget Office estimates ‘‘Sen. Kyl has a travel incentive bill going typical issues, focused on the recent down- the bill’s cost at $860 million, but it would through that’s $10 billion, but he says our grading of commercial credits and the result in $25 billion in government-guaran- bill is too expensive. Understanding how im- changes in the loan market as a result of the teed loans and venture capital for businesses, portant small businesses are to our economy, Sept. 11 terrorist attacks on New York and Kerry said. If the bill passes, Congress would we are not denying that travel is important as well, but we do need to get these small Washington. have to figure out where the money would businesses some assistance,’’ said Dayna After noting that debt rating agencies come from. ‘‘have revised their ratings for a substantial ‘‘As each day passes, more and more small Hanson, Kerry’s press secretary for the number of firms’’ recently, the survey asked businesses are left behind, facing financial small-business committee. Kerren Vollmer, who owned Nava-Hopi banks what portion of their commercial loan hardships that are forcing them to close Tours in Flagstaff with her husband, Roger, portfolios, by dollar volume, had been down- their doors as a result of inadequate disaster agrees. The couple closed their bus tour busi- graded in the past three months. assistance, stifled availability of loans and Among domestic institutions, 10.5% said ness Oct. 26 because so many people canceled limited access to capital,’’ Kerry said. their travel plans after Sept. 11. The they had downgraded less than 1% of their Kyl, a Republican, has said the bill is too Vollmers owned 10 tour buses and operated portfolios, while 40.4% reported downgrading expensive, and he told the Washington Post charter tours as well as regular trips to between 1% and 5%. Banks that downgraded he is not blocking the bill but acting as an Phoenix and the Grand Canyon from Flag- between 6% and 20% of commercial loans agent for the Republican steering committee staff. made up 42.1% of the total, and an additional in reviewing it. ‘‘You still have to run regular schedules,’’ 7% of respondents reported downgrading be- Kyl’s anonymous colleague on the bill can she said. ‘‘You can’t quit just because you tween 21% and 30%. remain unidentified because Senate rules have only three or four people.’’ The standard elements of the survey, allow members to oppose legislation without Vollmer is a lifelong Republican who voted which deal with underwriting standards and going public. for Kyl, ran for county superintendent, and loan demand, found that 50.9% of banks had The federal government already has in has worked in the voting precinct. She tried tightened their standards for large and place a disaster loan program that offers to contact Kyl’s office but received no re- midsize firms. For loans to small firms, low-interest loans to businesses that suffered sponse. 40.4% reported higher standards. directly or indirectly as a result of the Sept. ‘‘I’ve sent e-mail, I’ve sent him a fax, beg- The tightening of standards most fre- 11 attacks. The Small Business Emergency ging him, offering to talk with him or any of quently took the form of premiums charged Relief and Recovery Act of 2001 would help his staff, this is what’s going on,’’ Vollmer for making risky loans, and higher interest those firms, plus any small business that said. ‘‘When it’s your own senator, it hurts. rates. Loans to large firms were also likely needs money to survive in the lagging econ- Because I don’t feel like he even recognizes to have tighter loan covenants, while loans omy. what’s going on under his own nose.’’ to small firms were likely to carry higher Like thousands of other small businesses Vollmer said the company tried to get a collateralization requirements. across the country, Tucsonan Maggie John- disaster loan but couldn’t even get the appli- The main reasons for the tougher under- son has seen a dropoff since Sept. 11. John- cation, even with the help of the Arizona De- writing standards were a ‘‘less favorable or son’s Malkia African Arts & Gifts at 272 E. partment of Revenue and the local commu- more uncertain economic outlook’’ and a Congress St. is filled with African masks, nity college’s small business development ‘‘worsening of industry-specific problems.’’ fabric and clothing, Egyptian beaded scarves, center. Whether the latest measure will While banks were tightening their stand- and colorful greeting cards she makes by make it through the Senate is very much up ards, commercial borrowers were reducing hand. in the air, Coratolo said. their demand for loans, the survey found. ‘‘I’m not selling necessities. I’m selling ‘‘Am I optimistic? It’s about a 50-50 Loan demand from large and middle-market things people buy with their disposable in- chance, and if it does, it will be by the skin firms was down at 72% of banks in the sur- come. And everyone’s sitting on their dispos- of its teeth,’’ he said. ‘‘Sen. Kyl has been vey, while demand form small businesses was able income now,’’ she said. very, very effective at blocking it.’’ down 55.4%. The most common reason re- The consumer response to the attacks was ported for the decreased demand was a re- immediate and nationwide, she said. THE NATIONAL ASSOCIATION OF GOV- duced investment by customers in their ‘‘People are pulling back, retrenching— ERNMENT GUARANTEED LENDERS, plants and equipment. waiting is a good word,’’ she said. ‘‘They’re INC., After noting that, in the aftermath of the spending money on things they have to have, December 20, 2001. attacks, the Securities and Exchange Com- food and basics.’’ Hon. JOHN KERRY, mission had relaxed its rules on stock repur- The U.S. Chamber of Commerce is a strong Chairman, Senate Committee on Small Business chases by public companies, the survey supporter of the measure. Giovanani and Entrepreneurship, Russell Senate asked if demand for loans to finance such re- Coratolo, director of small-business policy Building, Washington, DC. purchases had increased, and if banks had al- for the Washington, D.C.-based group, was DEAR SENATOR KERRY, On behalf of the tered the terms of such loans. In both cases, careful not to criticize Kyl but did not say members of the National Association of Gov- more than 90% of respondents reported little the chamber has been working hard to get ernment Guaranteed Lenders (NAGGL), the or no change. the bill through the Senate. SBA’s 7(a) lending partners, thank you for The survey also asked if the dislocation of ‘‘We respect his opinion but we are not your continuing efforts to improve capital businesses after Sept. 11 had affected liquid- with him on this,’’ Coratolo said. ‘‘We’ve access for small businesses in this time of ity in the secondary loan market. Two-thirds been actively working to get co-sponsors sharply heighted need. We strongly support of the respondents reported decreased loan and, quite frankly, it could have 80 co-spon- your efforts and the efforts of Senator Bond trading volume, and 64.4% reported that sors, (but) he is still determined to block it.’’ to enact S. 1499. since the attacks, bid-ask had widened. Normally the chamber would not endorse It is clear, especially in light of events of legislation that would expand the govern- September 11, that banks’ profits continue to [From the Arizona Daily Star] ment’s role in small business, Corato said— plunge. According to a November 30 article KYL ACCUSED OF BLOCKING AID BILL but these are special circumstances. in the Washington Post, ‘‘Earnings for the (By Tiffany Kjos and Aaron J. Latham) ‘‘Given the times and what we see from nation’s banks dropped nearly 10 percent in Arizona Sen. Jon Kyl and an anonymous small businesses, there’s a lot of hurting the third quarter because of the largest in- lawmaker are being accused of blocking a going on and they do need help. They’re not crease in expected loan losses in more than a bill that would provide low-income loans to looking for handouts. They’re looking for ac- decade.’’ The report goes on to say that ‘‘the small businesses suffering as a result of the cess to capital that will give them the abil- dip in earnings can be partly attributed to country’s economic downturn. ity to help them hang in there,’’ he said. losses from the Sept. 11 terrorist attacks, The bill would provide financial help Coratolo said the opposition’s strategy has with more expected to be reported in the through existing loan programs administered been to run out the clock. The Senate will fourth quarter.’’

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00156 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S13929 This drop in profits has resulted in an sored that bill because I believe it is an a gun safety education program that every-tightening credit crunch, as can be in- important tool to prevent guns from includes parent-teacher organizations, ferred from just the headline of a November getting into the hands of criminals and local law enforcement and community 14 Wall Street Journal article that reads, foreign terrorists. This bill, which is organizations. This bill is similar to a ‘‘Banks Tighten Credit, Loan Standards In Past Months Amid Uncertain Outlook.’’ This supported by major law enforcement bill President Bush signed into law article cities a Federal Reserve study that organizations including the Inter- during his tenure as the Governor of ‘‘aids fuel to growing concerns that an un- national Association of Chiefs of Po- Texas. I support this bill and hope the willingness among bankers to lend is threat- lice, simply applies existing law gov- Senate will act on it during this Con- ening to choke off investment, hampering erning background checks to persons gress. chances of a quick economic recovery.’’ buying guns at gun shows. We should We know kids and criminals should In this economic climate, it has become stand with our Nation’s law enforce- not have access to guns, but there are exceedingly difficult for even the most quali- ment community and take this com- certain types of guns that simply do fied small businesses to access the capital mon sense step to reduce gun violence. not belong on the street. One example they need for survival, and to help spur the In January, regulations issued by the American economy to recovery and renewed is .50 caliber sniper guns. These weap- prosperity. Department of Justice directed the FBI ons are among the most powerful weap- This is why the passage of S. 1499 is so im- to retain NICS check information for a ons legally available. In fact, according portant. While the SBA’s Disaster Loan Pro- 90-day period. This 90-day period allows to one rifle catalogue, a .50 caliber gram is a necessary ingredient of economic local law enforcement and the FBI to manufacturer touted his product’s abil- recovery, it cannot possibly provide the check NICS for illegal guns sales, iden- ity to wreck ‘‘several million dollars, sweeping help that the 7(a) program can, and tify purchasers using fake IDs and worth of jet craft with one or two dol- S. 1499 addresses this problem. S. 1499 creates screens for gun dealers misusing the lars worth of cartridge.’’ This is a dis- a more attractive 7(a) program for cautious system. However, in June, the Attor- lenders, and a more affordable 7(a) program turbing assertion, particularly in the for hurting borrowers for one year’s time— ney General proposed reducing the wake of September 11th. Even more when both of them need it most. And it uti- length of time that law enforcement disturbingly, there are fewer restric- lizes private sector lenders that are already agencies can retain NICS data to 24 tions placed on purchases of long-range in place and ready to provide necessary cap- hours. This is simply not a sufficient .50 caliber sniper weapons than there ital immediately. amount of time for law enforcement to are on handguns. In fact, according to We encourage you and your Senate col- audit and review the NICS database for a 1999 GAO report, since the end of the leagues to expeditiously pass S. 1499 while it patterns of illegal activity. This Gulf War, .50 caliber sniper guns have is still possible to help small businesses and change will create another potential the American economy in their time of ended up in the hands of many sus- greatest need. loophole for criminals to purchase pected terrorists, including al-Qaeda. Sincerely, guns. Senator FEINSTEIN’s Military Sniper ANTHONY R. WILKINSON, I was greatly concerned by the Attor- Weapon Regulation Act would change NAGGL President & CEO. ney General’s action and I was pleased the way .50 caliber guns are regulated f to cosponsor the ‘‘Use NICS in Ter- by placing them under the require- rorist Investigations Act’’ introduced A PLEA FOR SENSIBLE GUN ments of the National Firearms Act. by Senators KENNEDY and SCHUMER. SAFETY LEGISLATION This is a necessary step to assuring the This legislation would reinstate the 90- safety of Americans. Mr. LEVIN. Mr. President, on April day period for law enforcement to re- More than 2 years ago, two young 27, 1999, we paused in the Senate to ob- tain and review NICS data. The need men brought terror to Columbine High serve a moment of silence in tribute to for this legislation was highlighted just School. Of the four guns used by the those who died at Columbine High a couple of weeks ago when the Attor- two Columbine shooters, three were re- School and to express our sympathy for ney General denied the FBI access to portedly acquired at a gun show. The their loved ones. Since the Littleton the NICS database to review for gun teenage shooters took full advantage of tragedy, over 60,000 people have been sales to individuals they had detained the gun show loophole, which allowed killed by guns, criminals continue to in response to the September 11th ter- their friend to buy them two rifles and gain easy access to guns and, according rorist attacks and refused to take a po- a shotgun without ever submitting to a to the Brady Campaign, there is an un- sition on an amendment which would background check. The tragedy in locked gun in one of every eight family authorize that access. I believe it is im- Littleton, Colorado struck a chord homes. Several strong pieces of gun perative that law enforcement is given with every American. About a month safety legislation have been introduced the authority to review the NICS data- ago, it was discovered in New Bedford, in the 107th Congress to address these base. The Schumer-Kennedy bill is Massachusetts that a 17-year-old was problems. None, however has been commonsense legislation that deserves plotting a massacre at his school. He adopted. In fact, none has even been floor action. told police he wanted the event to be voted on in the Senate. The Brady law has been effective in like the 1999 slaughter at Columbine In 1994, the Brady law established the keeping guns out of the hands of crimi- High School. Since the events of Sep- National Instant Criminal Background nals, but the number of children killed tember 11th, several states, including Check System, NICS. This check sys- in suicides, unintentional deaths and my home state of Michigan, have expe- tem allows federally licensed gun sell- school violence remains unacceptably rienced significant increases in appli- ers to determine whether a person is high. This is the case because kids still cations for concealed weapons permits allowed to buy a gun. Since its incep- have all too easy access to guns. Young and background checks for gun per- tion, NICS checks have prevented more children are too often killed or se- mits. The gun show loophole remains than 156,000 felons, fugitives and others verely injured because adults do not open, law enforcement lacks access to not eligible from purchasing a firearm store their firearms properly. A recent the NICS database, kids continue to without infringing upon any law-abid- National Institute for Justice survey gain access to guns and .50 caliber mili- ing citizen’s ability to purchase a gun. found that 20 percent of all gun-owning tary sniper guns remain uncontrolled. However, a loophole in the law allows households had an unlocked and loaded It is long past time to adopt sensible unlicenced private gun sellers to sell gun in the home. To prevent easy ac- gun safety legislation. guns without conducting a NICS check. cess to guns, Senator DURBIN intro- f A 1999 study by the Bureau of Alcohol, duced the Children’s Firearm Preven- Tobacco and Firearms found 314 cases tion Act. Under this bill, adults who LEGISLATION IN BEHALF OF of fraud at gun shows, involving 54,000 fail to lock up a loaded firearm or an VETERANS guns. Felons and suspected terrorists unloaded firearm with ammunition Mr. SPECTER. Mr. President, I have have reportedly used gun shows to pur- would be held liable if the weapon is sought recognition to comment briefly chase firearms, and smuggle them out taken by a child and used to kill or in- on legislation acted upon during the of the United States. On April 24, 2001, jure themself or another person. The first session of the 107th Congress Senator REED introduced the Gun bill also increases the penalties for which will make a dramatic difference Show Background Check Act. I cospon- selling a gun to a juvenile and creates in the lives of hundreds of thousands of

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00157 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S13930 CONGRESSIONAL RECORD — SENATE December 20, 2001 service members and veterans, and in by Senator THOMPSON to allow certain an automobile or make modifications the lives of every American. Four bills Vietnam-era veterans the ability to use to their homes to accommodate dis- relating to veterans benefits now await benefits, and it expands work-study op- abilities. The legislation also expands the President’s signature. These bills, portunities available to veterans while outreach and information services for coupled with another major piece of they’re attending college. And it will departing service members, veterans, legislation adopted by the Congress im- provide increased educational assist- and family members, and it stream- mediately prior to Memorial Day of ance benefits to the spouses and chil- lines the eligibility determination this year, will substantially enhance dren of service members killed in the process for low-income, disabled vet- veterans’ benefits in the areas of line of duty or who are permanently erans seeking non service-connected health care, education, homeless as- disabled as a result of service. Finally, pension benefits. sistance, disability compensation, and this legislation preserves the suspended A third major piece of veterans’ leg- other areas. They are a testament to education entitlement of service mem- islation which now awaits the Presi- the good which can come when House bers or reservists who had to leave dent’s signature, the ‘‘Homeless Vet- and Senate, Republicans and Demo- school as a result of being called to ac- erans Comprehensive Assistance Act of crats, come together to achieve a com- tive duty, such as a call to active duty 2001’’, H.R. 2716, is an additional step mon end. participation in Operation Enduring toward achieving the goal of ending The first bill now awaiting the Presi- Freedom. chronic homelessness among America’s dent’s signature, the ‘‘Veterans’ Com- In addition to these improvements in veterans. This legislation would au- pensation Rate Amendments of 2001’’, educational assistance benefits, the thorize VA to provide grants and per H.R. 2540, provides a 2.6 percent in- ‘‘Veterans Education and Benefits Ex- diem payments of up to $60 million in crease in the rates of veterans’ dis- pansion Act of 2001’’ keeps faith with 2002, rising to $75 million in 2003, to en- ability compensation and survivors’ veterans who served in past conflicts tities which provide outreach, rehabili- compensation. The increase, effective by expanding the eligibility of Vietnam tative, vocational counseling and December 1, 2001, reflects inflation and Gulf War veterans for presumptive training, and transitional housing serv- which occurred during the preceding 12 compensation based on exposures and ices to homeless veterans. It would ex- months, and is the same percentage in- experiences which occurred during pand mental health services, and direct crease Social Security recipients most those conflicts. A Persian Gulf War each VA primary care facility to de- recently received. H.R. 2540 will ensure veteran will now be eligible for com- velop and carry out a plan to provide that the purchasing power of com- pensation if he or she has a medically mental health services to veterans who pensation and survivor benefits is not unexplained, chronic, multi-symptom need them. This legislation would also compromised by inflation. illnesses such as chronic fatigue syn- authorize the provision of dental care A second bill, the ‘‘Veterans Edu- drome or irritable bowel syndrome, in to homeless veterans by VA in recogni- cation and Benefits Expansion Act of addition to undiagnosed illnesses al- tion of the fact that such care is a nec- 2001’’, H.R. 1291, is a comprehensive bill ready covered in law. Further, this leg- essary prerequisite if a homeless vet- which enhances education, disability islation gives VA explicit authority to eran is to gain, or regain, meaningful compensation, housing, burial, and compensate Gulf War veterans for any employment. Finally, this bill would other benefits that veterans have diagnosed condition. Given the Sec- ensure proper oversight of these pro- earned through service to the Nation. retary’s December 10, 2001, announce- grams through the creation of a VA The education provisions of H.R. 1291 ment of the increased prevalence of Advisory Committee on Homeless Vet- build on legislation, S. 1114, which I in- Lou Gehrig’s disease among Gulf War erans. troduced earlier this year, by increas- veterans, this provision is particularly A fourth and final bill which is now ing the Montgomery GI Bill, ‘‘MGIB’’, timely. pending executive action, the ‘‘Depart- monthly educational assistance benefit For veterans who served in the Viet- ment of Veterans Affairs Health Care from $672 to $985, a 47 percent increase, nam war, the ‘‘Veterans Education and Programs Enhancement Act of 2001’’, over the next 3-year period. With the Benefits Expansion Act of 2001’’ will re- H.R. 3447, would address a number of opportunity to ‘‘buy-up’’ an additional peal the 30-year limit on the time pe- critical issues affecting veterans’ $150 per month in benefits as a result of riod during which a Vietnam veteran health care. First, this legislation ad- legislation I authored during the 106th must have contracted a respiratory dresses the looming, and in some places Congress, veterans the potential will cancer if he or she is to be presumed el- already-present, VA nursing shortage now exist for a monthly benefit in ex- igible for compensation based on expo- by permanently authorizing the Em- cess of $1,100 per month for veterans at- sure to Agent Orange. According to a ployee Incentive Scholarship Program, tending school in the Fall of 2003. Such recent National Academy of Science/ a program which allows VA to provide a benefit level will pay the average Institute of Medicine report, there is up to $10,000 per year, for up to three cost of tuition, fees, books, room and no scientific evidence which suggests years, to employees engaged in full- board, and travel expenses at a 4-year an upper limit can be placed on res- time academic studies. Additionally, public college or university. These im- piratory cancer latency. Given this, I this legislation reduces the minimum provements are not just good for vet- believe the formerly-existing 30-year period of employment required for eli- erans; they are good for the Nation. limit was arbitrary; this bill removed gibility in the program from two years The national security dictates that the it. I owe thanks to Mr. Joseph R. to one year, and extends authority to services attract well-qualified, highly Mancuso, a Vietnam veteran from increase the award amounts based on motivated men and women to serve. As Pennsylvania who was stricken by, and federal national comparability in- was most recently recognized by the who, very sadly, has succumbed to, creases in pay. Further, in an effort to United States Commission on National lung cancer for bringing this legal encourage nurses who have already Security/21st Century, enhancements anomaly to my attention. This provi- completed school to come work for VA, in Montgomery GI Bill benefits are sion is a memorial to him. I just wish the bill would permanently authorize necessary to attract such recruits. the Congress might have acted while the Employee Debt Reduction Pro- The ‘‘Veterans Education and Bene- Mr. Mancuso was still alive. gram, EDRP, extend to five the number fits Expansion Act of 2001’’ will further I should mention a few of this legisla- of years that a VA employee might enhance educational assistance bene- tion’s other important provisions. It participate in the EDRP, and increase fits by providing needed flexibility to increases VA’s home loan guaranty to the gross award limit to any partici- students by allowing veterans to claim enable veterans living in high-cost re- pant to $44,000. The EDRP program al- benefits on an accelerated basis so that gions of the country to afford a home lows VA to assist employees with the they can pay the significant ‘‘up front’’ with little or no down payment. It in- repayment of education debt, and it al- expenses of high-cost technology creases burial benefits available to the lows VA to compete with private sector courses. It will also expand distance families of veterans who die due to a health care systems that offer similar learning and independent study bene- service-connected cause, and it in- programs. Finally, this legislation cre- fits. Further, this legislation incor- creases grants provided to severely dis- ates the National VA Commission on porates provisions from a bill authored abled veterans so they may purchase Nursing, which will consist of experts

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00158 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S13931 in the nursing profession as well as This first session of the 107th Con- ards for voting and giving States the economists and education profes- gress has produced five outstanding flexibility to make improvements tai- sionals. The Commission will report bills benefitting veterans. The en- lored to their State’s needs. First, this findings and recommendations relating hancements contained within them bill creates a permanent Federal sys- to nurse recruitment and retention and send an unmistakable message to tem of analysis and assistance. This other nurse employment issues within Americans that this Nation values legislation establishes an Election Ad- two years. military service and honors those who ministration Commission, consisting of The ‘‘Department of Veterans Affairs risk their lives so that we may be free. two commissioners from each party Health Care Programs Enhancement I complement all those who worked so who will serve 4-year terms. The com- Act of 2001’’ also contains elements of a hard to make these legislative accom- mission will bring expertise to modern- bill, S. 1188, which I introduced earlier plishments a reality. izing elections and provide States and this year to provide priority access to f VA care to poor veterans residing in localities with advice for their enhanc- relatively high cost areas like Phila- THE EQUAL PROTECTION OF ing voting procedures. This permanent delphia or Pittsburgh. Currently, VA VOTING RIGHTS ACT OF 2001 commission was the cornerstone of provides priority access to care, and it Mr. TORRICELLI. Mr. President, election reform legislation that Sen- waives co-payments, only for veterans when the Voting Rights Act was signed ator MCCONNELL and I introduced over whose incomes are below a nationally- into law over 30 years ago, many a year ago and I am extraordinarily determined annual amount. This ‘‘one- thought it was the end of a long jour- pleased to see it included in this land- size-fits-all’’ formula does not take ney to recognize that the ideals on mark legislation. into account local variations in the which this country was founded were Second, this legislation establishes cost of living. As a consequence, vet- more than just abstract notions. The erans in high-cost areas, typically Voting Rights Act and before it the three minimum national requirements urban areas, who are poor by most 14th amendment were definitive ex- for voting procedures to ensure that standards, do not qualify for priority pressions by our Nation’s government voting across the Nation is uniform access for VA care. And they must pay that liberty and equality in theory is and nondiscriminatory. These min- the full amount of co-payments only as meaningful as liberty and imum national standards include re- charged to other, much better off, vet- equality in practice. As my colleague quiring States and localities across the erans. This legislation would relieve from Connecticut noted yesterday in Nation to utilize voting systems that much of the burden of co-payments on, this Chamber, Thomas Paine captured enable voters to verify how they voted and raise the relative priority for VA the essence of our Nation’s democracy and ensure accessibility to language health care of, these near-poor vet- when he stated that the right to vote is minorities and individuals with disabil- erans. ‘‘the primary right by which all other The ‘‘Department of Veterans Affairs ities, requiring States and localities to rights are protected.’’ Health Care Programs Enhancement provide for provisional balloting, and The immediate consequence of the Act of 2001’’ also addresses other im- requiring States and localities to es- 2000 elections and its unsettling after- portant health issues. It provides serv- tablish a statewide voter registration math was a realization that even 30 ice-dogs, trained to accomplish tasks list with the names and addresses of el- years after the Voting Rights Act be- such as opening doors and retrieving igible voters. clothing, to disabled veterans. It di- came law, the Nation’s election system Perhaps most importantly, however, rects VA to focus its attention on the was not what people thought it was. maintenance of special programs in The election brought to light many this legislation provides $3 billion in each geographic region of the country, problems with the Nation’s voting sys- Federal grants for States and localities and it creates a program for chiro- tem, including the impact that out- to update voting systems, improve ac- practic care in the VA. Finally, this dated voting machines, undertrained cessibility to polling places, and train legislation authorizes the construction poll workers, and poorly-designed bal- poll workers, among other things. of a power plant in Miami, FL, that lots can have on an election. States and communities must show was destroyed over one year ago by a Throughout the past year, Congress that they comply with the three na- fire that left two employees critically and the Nation have evaluated how tional requirements to be eligible for injured. best to ensure that future elections are the grants. An additional $400 million Finally, I note the enactment of the ones in which Americans can have is authorized for providing early funds faith in the results. I have spent count- ‘‘Veterans’ Survivor Benefits Improve- so that States and localities can imple- less hours devoted to the subject. A ments Act of 2001,’’ Public Law 107–14, ment some improvements quickly; $100 year ago last week, Senator MCCON- which was signed by the President on million of the bill’s funding is directed NELL and I introduced one of the first June 5, 2001. This legislation retro- to provide grants to make polling actively increased insurance benefits bills seeking to improve election sys- places physically accessible to those provided to, and guaranteed additional tems and procedures. Others soon fol- health care coverage for, the survivors lowed with their own ideas about how with disabilities. This funding ensures of service members killed in the line of to best bring about change to what we that for the first time in our Nation’s duty. This legislation also expanded had learned was a clearly flawed sys- history, the Federal Government will health care coverage to the spouses of tem. contribute our share to the cost of ad- veterans who have permanent and total With so much at stake, the process ministering elections for Federal of- disabilities due to military service and has not been without disagreement and fice. to the spouses of veterans who have at times it seemed that little would be I hope that this legislation completes died as a result of wounds incurred in changed. Both the House of Represent- our Nation’s journey to ensuring that service. Further, this Act extended life atives and the Senate, however, have all eligible Americans are able to cast finally made progress in crafting bipar- insurance benefits to service members’ their vote fairly, accurately, and with- tisan legislation seeking to make elec- spouses and children, and authorized, out interference. To some, this legisla- and directed, VA to conduct outreach tions more fair for all Americans. The tion may not be perfect, but I can as- efforts to contact these survivors, and House of Representatives has passed sure my colleagues that it is the result other eligible dependents, to apprize legislation supported by a majority of them of the benefits to which they are both parties. Yesterday, Senators of reasoned compromise and is a bal- entitled. Finally, the ‘‘Veterans’ Sur- DODD, MCCONNELL, BOND, SCHUMER and anced response to all that our Nation vivor Benefits Improvements Act of I introduced bipartisan legislation to has learned from the 2000 elections. I 2001,’’ made technical improvements to modernize the Nation’s election proce- hope that when my colleagues and I re- Montgomery GI Bill education bene- dures. turn in January, we can work with the fits, and make other purely technical The Equal Protection of Voting Senate leadership to ensure that bring- amendments to title 38, United States Rights Act of 2001 represents a balance ing this legislation to the Senate floor Code. between establishing national stand- is one of our top priorities.

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00159 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S13932 CONGRESSIONAL RECORD — SENATE December 20, 2001 EXPIRATION OF TRADE This raises the prospect that some of African Americans have played a cen- PROVISIONS the 35,000 TAA recipients around the tral part in the development of our Mr. BAUCUS. Mr. President, in the United States will receive a very nasty country’s democratic institutions and whirlwind of activity that always ac- Christmas present—the unexpected our commitment to individual freedom companies the end of a legislative ses- halt of the benefits on which they de- and equal rights. Despite this history, sion, many critical legislative deci- pend to rebuild their lives and support there is currently no national museum sions are made and critical legislation their families. located in Washington, D.C. on the Na- passes. Often it takes some time to Mr. President, I believe Congress is tional Mall devoted to telling the Afri- tote up the wins and losses and arrive sometimes criticized unfairly. Some- can American story. I believe this mu- at a final evaluation of what has been times, however, the rush of events di- seum is the next stage in recognizing achieved and what remains to be done. verts attention from some of the glar- the burdens born by African Americans Despite the efforts of those in the ing errors we make. and celebrating their unique contribu- Senate, one of the losses for the session The stubborn obstinance of some of tions to our nation. is the expiration of three key trade the other body to extend TAA is, in my Many notable African Americans programs, the Generalized System of view, a shameful example of playing have made contributions in the areas Preferences (GSP), the Andean Trade politics with the interest of those citi- of science, medicine, the arts and hu- Preferences Act (ATPA), and Trade Ad- zens that can least afford it. I hope this manities, sports, music and dance. It is justment Assistance program. example is not lost on journalists, edi- right to honor this legacy on a na- What is surprising about the expira- torial writers, and, ultimately, voters. tional level. I believe that by estab- tion of these programs is all three of Someone should be held accountable. lishing this museum this nation will be able to finally honor the legacy of Afri- them have nearly universal support. f They expire not because of a legitimate can Americans properly. By placing difference in policies and not because LOCAL LAW ENFORCEMENT ACT this museum on the National Mall, we the programs have served their pur- OF 2001 will finally place the history of African pose. They expire because of political Mr. SMITH of Oregon. Mr. President, Americans in a national light, where it maneuvering in the House. I rise today to speak about hate crimes belongs. In my view, it always reflects poorly legislation I introduced with Senator The legislation creates a 23 member on the Congress when needed programs KENNEDY in March of this year. The commission made up of individuals expire due to political machinations or Local Law Enforcement Act of 2001 who specialize in African American simply lack of attention. It sends poor would add new categories to current history, education and museum profes- signals to those that depend on these hate crimes legislation sending a sig- sionals. The commission has nine programs. In this case, the U.S. compa- nal that violence of any kind is unac- months to present its recommenda- nies that import products under GSP ceptable in our society. tions to the President and Congress re- and ATPA and the foreign countries we I would like to describe a terrible garding an action plan for creating a are attempting to aid through these crime that occurred in May 1995 in national museum honoring African programs can hardly avoid the impres- West Palm Beach, FL. A gay man was Americans. The Commission will de- sion that these programs are a low pri- robbed and brutally murdered. The cide the structure and make-up of the ority for Congress. attacker, Ronald Knight, 27, was con- museum, devise a governing board for In the case of ATPA, there are those victed of first-degree murder, armed the museum, and among other action that believe that expiration will spur a robbery, and a hate crime in connec- items, will decide whether to place the rapid move to expand ATPA. I support museum within the Smithsonian’s Arts tion with the incident. an expansion of ATPA, but I believe I believe that government’s first duty and Industries Building, which is the such brinkmanship is far more likely last existing space on the National is to defend its citizens, to defend them to result in a long break in ATPA than Mall. against the harms that come out of it is a quick expansion. This museum will commemorate and Fortunately, in the case of both GSP hate. The Local Law Enforcement En- honor the 400 years of African Amer- and ATPA it is possible to extend these hancement Act of 2001 is now a symbol ican history in this country and be- tariff benefits retroactively. If the U.S. that can become substance. I believe yond. Legislation was introduced just importers are able to shift funds and that by passing this legislation, we can about every session of Congress be- wait, there is a good chance they will change hearts and minds as well. tween 1919 and 1929 to create a memo- ultimately receive the promised bene- f rial building to house exhibits dem- fits from these programs. THE NATIONAL MUSEUM OF AFRI- onstrating the achievements of African Sadly, this is not the case with the CAN AMERICAN HISTORY AND Americans in art, science, invention expiration of the Trade Adjustment As- CULTURE PRESIDENTIAL COM- and all aspects of life. I am both proud sistance program. This program pro- MISSION and pleased to be associated with this vides income support and training ben- project and look forward to seeing this Mr. CLELAND. Mr. President, I rise efits to workers who have lost their legislation signed into law by the today to discuss legislation that estab- jobs due to trade. It provides them the President in the near future. lishes the National Museum of African opportunity to train for a new job and f rebuild their lives. Given that they are American History and Culture Presi- unemployed, they are generally not in dential Commission. On Monday, De- THE POLICE CORPS PROGRAM a position to absorb a three month or a cember 17, 2001, the Senate passed, with Mr. LOTT. It is my understanding six month break in benefits. my support, H.R. 3442 which establishes there are concerns with the Police I understand that the Department of the National Museum of African Amer- Corps Program. It appears that funding Labor plans to advise the state agen- ican History and Culture Presidential from within the current fiscal year is cies that work with them to administer Commission. The Presidential Commis- not being made available to certain TAA plan to advise those agencies to sion will develop and recommend a leg- States. keep paying benefits because they ex- islative plan of action for creating a Mr. GREGG. I appreciate the minor- pect the program to be reauthorized. national museum on the National Mall ity leader’s concerns with Police Corps. The Department of Labor’s advise is that recognizes the unique historical I have been told that OMB and the De- sound; indeed, I hope to win passage for and cultural legacy of African Ameri- partment of Justice have rectified this a considerable expansion of TAA. cans. The U.S. House of Representa- situation. Both organizations have Unfortunately, there is no guarantee tives passed the legislation, introduced agreed that any funds available for Po- that state agencies will keep operating by Representative JOHN LEWIS, on De- lice Corps in fiscal year 2002 and unex- based upon this federal promise and cember 11, 2001 by voice vote. pended balances from prior fiscal years borrow money from other programs to The African American legacy is one will be made available for new pro- support TAA. In fact, in at least 5 of gradual steps that have moved this grams if currently eligible participants states, state law prohibits such fund group of Americans from slavery to full have not used the funding provided for shifting. partnership in our society and culture. their State.

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00160 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S13933 Mr. STEVENS. I have the same un- Chairman HOLLINGS, Ranking Member fense is a joint project of the Univer- derstanding. OMB and Justice have de- GREGG and others to assure that the sity of South Florida College of Public cided that available funds can be used Police Corps program is treated fairly Health and the Florida Department of from the current balances. I am glad by the Office of Justice Programs this Health. The Center focuses on a full this issue has been worked out. year and in future years, and to insure spectrum of studies and programs, Mr. KERRY. I very much appreciate that this important program receives ranging from research and development the comments of Senators LOTT, STE- adequate funding in the future. to outreach and educational seminars. VENS, and GREGG concerning the Police f The Center has implemented a multi- Corps program, which provides scholar- faceted approach to biological defense ships on a competitive basis to stu- BIOTERRORISM research that utilizes a number of uni- dents who earn their bachelor’s de- Mr. NELSON of Florida. Mr. Presi- versities throughout the state of Flor- grees, complete approved Police Corps dent, I rise to recognize the important ida to implement its studies and training, and then serve for four years achievement the Senate has made projects. The Center for Biological De- on patrol with law enforcement agen- today in defending our homeland. Just fense has laboratory programs that are cies in areas of great need. The Police over two months ago, my state of Flor- dedicated to improving surveillance Corps gives States funding to provide ida was the site of the first in a series systems, developing early detection ca- residential police training and to pro- bioterrorist attacks on our Nation that pabilities, rapidly identifying patho- vide local and State agencies that hire culminated here in Washington, DC. gens, and fully understanding the fac- Police Corps officers $10,000 a year for While the repercussions evolving out of tors that affect the toxicity of biologi- each of an officer’s first 4 years of serv- the anthrax attacks on our mail sys- cal agents. Moreover, the Center con- ice. The fiscal year 2002 Senate Com- tem pale in comparison to the enor- centrates on efforts to enhance health merce, Justice, State and Judiciary mous tragedy of September 11, the fam- care preparedness, to strengthen hos- Appropriations bill, under the leader- ilies of those who suffered tragic pital hygiene and containment capa- ship of Chairman HOLLINGS and Rank- deaths after being exposed to anthrax bilities, and to coordinate vital edu- ing Member GREGG, included $30 mil- laced letters and those of us who con- cational and training programs for lion for the Police Corps program. tinue to be displaced on Capitol Hill emergency management and health However, I was very disappointed that understand the very real dangers asso- professionals, which has proven to be a this amount was reduced to $14.435 mil- ciated with the elusive threat of bioter- crucial component of the response ef- lion in the conference report, which in- rorism. forts to the anthrax contamination oc- cluded legislative language that the In the wake of the anthrax attacks, curring over the course of the past 2 Police Corps program has sufficient un- we, as a Nation, began to realize that months. obligated balances available to allow we were not fully prepared to effec- While the preeminent focus of the the program to maintain its activities tively and comprehensively respond to Bioterrorism Preparedness Act of 2001 in fiscal year 2002 at the prior year biological threats. The attack in Boca is on our government agencies and level. Raton, FL elicited an array of missteps their crucial missions, a portion of this I am very concerned that the Office and symptoms of inadequate prepara- bill recognizes our Nation’s univer- of Justice Programs is not planning to tion at all levels of government. Be- sities as a critical component of the provide appropriate funding for the Po- cause Floridians, and Americans, had United States bioterrorism defense lice Corps program in fiscal year 2002. never faced such a threat before, the plan. Centers across the Nation, like It is my understanding that the Office necessary communication lines had not Florida’s Center for Biological Defense, of Justice Programs’ plan for the Po- been formed and many emergency re- do critical bio-defense work at the lice Corps program could limit the sponders were not properly equipped to local, State, and national level every- ability of local law enforcement agen- handle this new type of crisis. The Bio- day. In fact, it is these programs that have coordinated first responder train- cies to address violent crime by de- terrorism Preparedness Act of 2001, ing programs, developed products capa- creasing the number of officers with passed by the Senate today, is an im- ble of identifying biological contami- advanced education and training who portant first step at increasing our nation on site, and developed new tech- serve on community patrol in high- ability to respond to, and prevent, fu- niques for containing disease and pre- crime areas. This could negatively af- ture biological attacks at the Federal, venting the spread of contagious patho- fect the Police Corps program in my State, and local levels. It will enhance gens. I am delighted that the Senate home State of Massachusetts, which is our ability to detect an attack by im- has been proactive in acknowledging currently updating its training cur- proving disease surveillance systems the tremendous value of these pro- riculum to provide the rigorous phys- and public health laboratories. It will grams in an effort to encourage their improve our ability to treat victims of ical and moral police training that will receipt of additional Federal grants in an attack by increasing hospital capac- help Police Corps recruits work effec- the future. tively in high-crime areas within Mas- ity for disease outbreaks. It will also I am pleased that I was able to be sachusetts. As our nation remains on enhance our ability to contain an at- part of the effort to draft and pass the high alert due to recent terrorist at- tack by expanding pharmaceutical Bioterrorism Preparedness Act of 2001 tacks, the Police Corps program will stockpiles and accelerating the devel- and I am thankful to my fellow Sen- play a crucial role in training future opment of new treatments. Finally, ators for ensuring the passage of this policemen and policewomen to stop this bill seeks to target future bioter- vital bi-partisan legislation prior to terrorist activities before they hurt in- rorist threats in a comprehensive man- the holiday recess. I look forward to nocent Americans. ner by protecting our food sources and passing a final version of this bill at It is my understanding that there are other potential targets. the conclusion of the conference be- unobligated funds available to provide I would like to take this opportunity tween the House and Senate, as I be- the Police Corps program with the to highlight a portion of the bill that I lieve that implementation of this bill funding necessary to increase the num- believe is essential to our Nation’s co- will not only ensure our preparedness ber of recruits above the modest dem- ordinated prevention and response ini- for any future biological threats, but onstration level of approximately 25 tiative. Like many Americans, I sought will also quell the concerns and fears of trainees per state per year and to as- out additional information about the the American people. sist in resolving the current backlog of threat of bioterrorism after anthrax f funding requests for the program. was discovered in Florida, New York, I believe that the Department of Jus- New Jersey, and Washington, DC. In MTBE tice should provide such funds as are the course of my research efforts, I had Mr. SMITH of New Hampshire. Mr. necessary to maintain the current level the opportunity to visit with some of President, for the third day this week, of activity in Police Corps operations the professors, researchers, and sci- I have come to the floor to speak about and to begin to resolve the current entists that work for the University of MTBE. backlog of funding requests for the pro- South Florida Center for Biological De- This is the gas additive that has be- gram. I look forward to working with fense. The Center for Biological De- come a huge concern for millions

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00161 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S13934 CONGRESSIONAL RECORD — SENATE December 20, 2001 across the Nation because of the con- daily needs such as: bathing; washing in analyzing and advising me on all of tamination it has caused. fruits and vegetables; and cooking. the details of this landmark legisla- That is certainly true of many com- Within a few months of the initial tion. They have served our State and munities throughout New Hampshire tests at the Sojka home, the MTBE our Nation well, and our country’s where it has become a crisis. And the contamination levels in the well children will be the beneficiaries. crisis will continue to escalate unless jumped up by almost 8,000 percent. My Immigrants to New Americans it is dealt with. Unbelievable contamination! language addresses the explosion of im- I was pleased last week when the ma- Last summer, the State installed an migrants coming to this country over jority leader made a commitment to elaborate and cumbersome water treat- the past decade. Information from the me that the Senate will vote on MTBE ment system on the Sojka’s property. 2000 Census shows that the impact from legislation before the end of February. Unlike the Millers that I spoke of yes- this wave of immigration is having a Until the day of that vote arrives, I terday, who had a system installed in dramatic impact on schools and com- will continue to come to the floor to their home, the system needed for the munities across America, including remind Senators of the terrible impact Sojka’s was too large to fit in the home non-traditional immigrant commu- that MTBE is having on the Nation. The State had to build a shed sepa- nities in states like Wisconsin, Iowa, And remind them why it is important rate from the house for the commercial Nebraska, Oklahoma, Georgia and the that we act now. water treatment system. The system Carolinas. My amendment will provide In 1990, the Clean Air Act was amend- consists of an enormous commercial resources to these communities to help ed to include a clean gasoline program. air stripper and two 6 cubic foot carbon ensure that these children—and their That program mandated the use of an units. families—are being served appro- oxygenate in our fuel—MTBE was one Such a system costs in the neighbor- priately. Specifically, it would expand of two options to be used. hood of $20,000. the use of funds under the Emergency The program with MTBE is that Fortunately for the family, the state Immigrant Education set-aside to in- when it is leaked or spilled, it moves is providing the system and cost of op- clude activities which, one, assist cul- through the ground very quickly and eration and maintenance to the tune of turally and linguistically diverse chil- dren achieve success in America’s into the water table. an additional $5,000 per year. schools and, two, allow local edu- Many homes in New Hampshire and Can you imagine having a large cational agencies to partner with com- across the nation have lost use of their chuck of your back yard being occupied munity-based organizations to provide water supply because of MTBE con- by a commercial water treatment sys- the families of these children access to tamination. tem. comprehensive community services. Many others have had to install ex- It is terrible that this has to happen to any family. And it is horribly wrong My second amendment incorporated pensive water treatment systems in in this landmark legislation addresses for federal mandate to cause such pain. order to drink the water or even show- the deeply troubling issue of violence er. This problem isn’t unique to New Hampshire—it exists in Maine, Cali- at Columbine and Heritage High and in According to the New Hampshire De- other schools across the country. My fornia, Nevada, Texas, New York, partment of Environmental Services, School Safety Enhancement Amend- Rhode Island, and on and on. there may be up to 40,000 private wells ment, based on the best research in the with some MTBE contamination. Of We would be delinquent in our duties as United State Senators if we were to field of school violence prevention, those, up to 8,000 may have MTBE con- would create a National Center for sit back and do nothing about this. tamination over state health stand- School and Youth Safety tasked with ards. We must act soon. I have a bill that has been reported the mission of providing schools with So far this week, I have talked about adequate resources to prevent inci- the problems faced by families and out of committee two years in a row that will address these problems. dents of violence. The National Center small businesses throughout the re- would offer emergency assistance to gions of New Hampshire. Mr. President, the time to act is now—it is time to help out the families local communities to respond to school Today I want to talk about the Sojka safety crises, including counseling for family who have a home on Cobbetts who have fallen victim to a Federal mandate. victims, assistance to law enforcement Pond in Windham. to address short-term security con- The water supply for the home is a f cerns, and advice on how to enhance deep, bedrock on-site well. Mr. CLELAND. Mr. President, the school safety and prevent future inci- Just about two years ago, the Sojkas far-reaching education package before dents. It would also operate a toll-free, began noticing that the water had a us today makes significant strides to- anonymous nationwide hotline for stu- strange odor and that it left a residue ward meeting three of America’s most dents to report criminal activity and on their hands. important education goals: improved other high-risk behaviors, such as sub- So they did a little test of their own student achievement, increased ac- stance abuse, gang or cult affiliation, to see if there really was anything un- countability, and enhanced teacher depression, or other warning signs of usual with their water. Their son Brian quality. I am very pleased that the potentially violent behavior. Finally, filled up a bowl full of tap water and conference report includes two of the the National Center would compile in- let it sit overnight. They were horrified amendments I offered to the Senate formation about the best practices in with their finding next morning. The BEST Act—my Immigrants to New school violence prevention, interven- water had a slick oily film floating on Americas amendment and my amend- tion, and crisis management. The goal top—the same water that the family ment to establish a National Center for of the National Center for School and had been drinking, bathing in, and School and Youth Safety. I thank the Youth Safety is to involve the entire cleaning their food with. distinguished managers of the Senate community—parents, school officials, As a result, the Sojkas had their bill, Senator KENNEDY and Senator law enforcement officers, and local water tested. The test revealed MTBE JEFFORDS, for their support and their governments and agencies—to make contamination at a level twice as high willingness to assist me. I also want to them aware of the resources, grants as the State standard. express my appreciation to the staff of and expertise available to enhance They contacted the State of New the Senator from Massachusetts for school safety and prevent school crime. Hampshire for help—by now, it had be- the courtesies and counsel they showed In closing, I would like to quote come quite common for the state to get to me and to my staff. former British Prime Minister Ben- this type of request. Finally, I want to thank the ‘‘edu- jamin Disraeli, who once said: ‘‘Upon The state began providing bottled cation team’’ on my own staff, led by the education of the people of this water to the family. Just like the Mil- Lynn Kimmerly, my superb deputy leg- country, the fate of this country de- ler family I spoke of yesterday, the islative director, and Donni Turner, my pends.’’ One of the most important in- Sojka’s pointed out similar concern— outstanding chief staff counsel, who vestments this nation can make is an that while bottled water is fine for helped not only in developing and win- investment in the education of its fu- drinking, it doesn’t help with other ning support for my amendments but ture leaders. It is my fervent hope that

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00162 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S13935 Members of Congress, on both sides of money spent on services and preven- will continue to fight for full funding the aisle, will see the wisdom in invest- tion. Furthermore, annual spending of this measure. This bill also address- ing adequate dollars to carry out the during this period for removal and es these needs by increasing INS in- worthy goals of this critically impor- placement is expected to increase by spectors and border patrol staffing tant piece of legislation—improved stu- thirty-five percent, from $4.8 billion to each by 200 persons per year for the fis- dent achievement, increased account- $6.5 billion, while annual spending for cal year 2002–2006. The bill also author- ability, and enhanced teacher quality. prevention and services is expected to izes $150 million in spending for im- It is an investment in the future of increase by only nine percent, from proving technology and facilities at America, and the future, after all, is in $0.57 billion to $0.62 billion. our borders. very small hands. More than one hundred thirty thou- The Enhanced Border Security Act of f sand children are waiting to be adopted 2001 addresses several other critical out of foster care in the United States, issues. In hearings this session before ON REAUTHORIZATION OF THE and at least 4,500 of those children live the Immigration Subcommittee and PROMOTING SAFE AND STABLE in Iowa. Each child deserves a loving the Technology and Terrorism Sub- FAMILIES PROGRAM family and a safe environment. Pro- committee, as well as the full Judici- Mr. GRASSLEY. Mr. President, the moting Safe and Stable Families ary Committee, we heard repeated Senate recently passed legislation re- grants provide critical services to vul- calls for better sharing of law enforce- authorizing an important child welfare nerable families and children, and I am ment and intelligence information as it program known as Promoting Safe and pleased the Senate fulfilled its duty relates to admitting aliens into the Stable Families. Under the auspices of and acted to reauthorize the program. United States. The bill addresses this this Social Security Act grant pro- Ms. CANTWELL. Mr. President, I problem by mandating INS and Depart- gram, States are able to provide serv- rise today in support of the Enhanced ment of State access to relevant FBI ices to at-risk families to prevent the border Security Act of 2001. We must information within one year. I am need for children to enter the foster take the long term steps to strengthen pleased that the authors of the bill care system. the security at our borders. I want to have included provisions to protect the Four types of services are included in commend my colleagues, Senators privacy and security of this informa- the program: family preservation; com- KENNEDY and FEINSTEIN, BROWNBACK tion, and require limitations on the use munity-based family support; time- and KYL, for their tireless work to ad- and repeated dissemination of the in- limited family reunification; and adop- dress border security issues. formation. tion promotion and support. In addi- The bill we will be voting on today, Two of the most important provi- tion, the program provides funding for the Enhanced Border Security Act of sions of this legislation address inter- state court improvement projects. I 2001, was a product of the thoughtful national cooperation in enhancing bor- cannot proceed without praising Iowa’s merging of two bills. As an original co- der security. Protecting U.S. borders court improvement project which, sponsor of Senators KENNEDY and requires the assistance and cooperation under the leadership of Judge Terry BROWNBACK’s initial version of this bill, of our closest allies. Indeed, we share Huitink and Judge Stephen Clarke, has I have worked closely with the four an interest in protecting our respective produced valuable research to stream- principal sponsors to integrate the best borders. Citizens of several countries, line the court process for children of each of these two pieces of legisla- including most European countries, waiting to be adopted. The Iowan tion, and have been very please with Japan and Canada, can enter the U.S. project also provides training for the outcome of this effort. without visas. And this is as it should judges in order to increase under- This bill addresses what I consider to be. But the U.S. must, with new ur- standing of the needs of children in the be one of the most important issues in gency, continue to engage Canada, foster care system. our fight against terorism—how we can Mexico and other countries that may The reauthorization passed by the effectively secure our borders from ter- be interested in sharing law enforce- Senate ensures that money will be rorists. This bill address border secu- ment and intelligence information to available for the next five years at an rity by increasing the number of border protect our respective borders. We annual minimum of $305 million per patrol and immigration personnel at must improve information sharing, and year. An additional $200 million is au- the borders; improving the quality and must improve the technology to make thorized to be spent from discretionary sharing of identity information; im- sure information is shared with the funds determined annually by Senate proving the screening of foreign na- right people and in a timely manner. appropriators. I am also pleased the tions seeking to enter the U.S. on In October, we passed a major anti- 2002 Senate Labor, Health and Human visas; and improving awareness of the terrorism bill that contained a number Services, and education appropriations comings and goings of these foreign na- of provisions that will enable our law legislation included $70 million in dis- tionals as they enter or exit our coun- enforcement community and the intel- cretionary spending for the Safe and try. ligence community to obtain and share Stable program, for a total funding As a member of the Judiciary Com- vital information regarding persons level of $375 million in fiscal year 2002. mittee, I have been honored to work who are a threat to the U.S. One of the In fact, I and some of my Senate col- closely with Senators KENNEDY and most important new tools I was pleased leagues are sending a letter to Presi- FEINSTEIN to find ways to better pro- to have had included in USA Patriot dent Bush tomorrow requesting that tect our borders and provide necessary Act is a requirement that State and full funding of $505 million for the pro- support to the men and women who Justice develop a visa technology gram be included in the Administra- work for the State Department, the standard to help secure our border and tion’s fiscal year 2003 budget. Immigration and Naturalization Serv- make certain each individual who The Promoting Safe and Stable Fam- ice and the U.S. Customs Agency. seeks entry into our country on a visa ilies program is a valuable weapon in I, along with many of my colleagues, is the person he or she claims to be and the fight against child abuse and ne- am currently pressing for funding to there is no known reason to keep that glect. The Federal Government spends triple the number of Immigration and person out. billions of dollars each year to provide Naturalization Service and U.S. Cus- We must work with our allies to take services to children who have already toms personnel on our northern border advantage of this technology standard been placed in the foster care system. and improve border technology, the au- to improve interoperability on an Much less money is spent on providing thorization for which was included in international scale. We should do what services before removal from the home the USA Patriot Act. In the past, a se- we can to eliminate technological bar- is necessary. In fact, the Congressional vere lack of resources at our northern riers to information-sharing regarding Budget Office estimates that between border has compromise the ability of dangerous individuals and to address 1999 and 2003, money spent on removing border control officials to execute their our mutual concern for border secu- children from their homes and placing duties. I am pleased that Congress rity. To this end, this bill requires the them in foster and adoptive homes will made the tripling of these resources a Department of State to report to Con- exceed by nine times the amount of priority for national security, and I gress within six months on how best we

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00163 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S13936 CONGRESSIONAL RECORD — SENATE December 20, 2001 can undertake ‘‘perimeter’’ screening vacy and the protection of intelligence management structure, eventually as- with our partners, Canada and Mexico. sources, to the front-line government suming the position of Chief of Depart- Further, the bill requires the Depart- agents making the decisions to issue ment, the highest ranking uniformed ment of State, the Immigration and visas or to admit visa-holding aliens to position in the department. It was dur- Naturalization Service and the Office the United States. ing Mr. Timoney’s tenure in the upper of Homeland Security to report to Con- Keeping terrorists out of the U.S. in echelons of the NYPD that New York’s gress within 90 days on how best to fa- the first place will reduce the risks of crime rate began to drop precipitously, cilitate sharing of information that terrorism within the U.S. in the future. due in no small part to the new man- may be relevant to determining wheth- Aliens known to be affiliated with ter- agement structure he instituted, merg- er to issue a U.S. visa. Our borders are rorists have been admitted to the U.S. ing the Housing and Transit Police De- only as secure as the borders of those on valid visas simply because one agen- partment with the NYPD. In 1996, upon countries whose citizens we allow into cy in government did not share impor- his departure from the NYPD, then- our country without a visa. tant information with another depart- Chief Timoney had accrued over 65 De- The provisions we have achieved in ment in a timely fashion. We must partment Medals, including the pres- the USA Patriot Act laid the founda- make sure that this does not happen tigious Medal of Valor. tion for more specific provisions to as- again. After retiring from the NYPD, John sure the best use of technology to im- Until now, we had hoped that agen- entered the world of private security prove the security at our borders. This cies would voluntarily share this infor- consulting, and offered his expertise bill fulfills the promise of the USA Pa- mation on a realtime and regular basis. and advice to law enforcement authori- triot Act to assure information sharing This has not happened, and although I ties all across the country and around will be thoughtfully implemented in know that the events of September 11 the world. He served as Vice Chairman short order. have led to serious rethinking of our of the Irish Commission on Domestic With the enactment of the USA Pa- information-sharing processes and pro- Violence, and he advised Britain’s Pat- triot Act of 2001, the federal govern- cedures, I think it is time to mandate ton Commission, which focused on po- ment committed to developing a visa the sharing of fundamental informa- licing Northern Ireland. technology standard that would facili- tion. In March of 1998, Philadelphia Mayor tate the sharing of information related Advancements in technology have Ed Rendell appointed John Commis- to the admissibility of aliens into the provided us with additional tools to sioner of the Philadelphia Police De- United States. I proposed this language verify the identity of individuals enter- partment. His tenure in that position recognizing that, for many years, the ing our country without impairing the was marked by the same commitment U.S law enforcement and intelligence flow of legitimate trade, tourism, to excellence and improvement which communities have maintained numer- workers and students. It is time we put characterized his career in New York. ous, but separate, non-interoperable these tools to use. John brought the innovative Compstat databases. These databases are not eas- Improving our national security is system to Philadelphia, and helped to ily or readily accessible to front-line vitally important, but I will not sup- reinvigorate the department. Running federal agents responsible for making port measures that compromise Amer- a department of 7,000 officers and 900 the critical decisions of whether to ica’s civil liberties. The bill we are vot- civilian employees is no easy task, and issue a visa or to admit an alien into ing on today includes a number of safe- Commissioner Timoney’s efforts to the United States. guards to protect individuals’ rights to modernize the department have been To build on and fulfill the goals of es- privacy. The bill provides that where rewarded by a decline in Philadelphia’s tablishing this standard, this bill will databases are created or shared, there crime rate. do three things. First, it will require must be protection of privacy and ade- While I thank John profusely for technology be implemented to track quate security measures in place, limi- what he has done to make the streets the initial entry and exit of aliens tations on the use and re-dissemination safer for millions of New Yorkers and travelling on a U.S. visa. We know now of information, and mechanisms for re- Philadelphians, I rise today for another that several of the terrorists who at- moving obsolete or erroneous informa- reason: to thank Commissioner tacked America on September 11th tion. Even in times of urgent action, Timoney for the lessons that his exper- were traveling on expired visas. We we must protect the freedoms that tise and experience have taught the en- have had the law in place for several make our country great. tirety of the law enforcement commu- years now, but due to concerns about I urge a favorable vote. nity. While his achievements as a cop maintaining the flow of trade and tour- f on the beat deserve our thanks, I want ism across our borders—concerns I to make special mention of the con- share—the provisions of Section 110 TRIBUTE TO COMMISSIONER JOHN tribution he has made to our under- have not been fully implemented. F. TIMONEY standing of how police departments can Technology will address those con- Mr. BIDEN. Mr. President, I rise better employ their resources to com- cerns, allowing electronic recordation today to pay tribute to the long and bat crime across the country. and verification of entry and exit data distinguished career of one of our Na- Commissioner Timoney’s career in in an instant. tion’s top police executives, Philadel- the upper echelons of law enforcement Second, I believe it is necessary to phia Police Commissioner John F. have been marked by two major para- require the Department of State and Timoney. digm shifts. Without them, law en- Justice to work with the Office of Commissioner Timoney will leave forcement would not be nearly as suc- Homeland Security to build a cohesive the Philadelphia Police Department in cessful. And because Commissioner electronic data sharing system. The early January, and I want to highlight Timoney’s work represents what I system must incorporate interoper- some of his achievements. I believe think is the best of law enforcement— ability and compatibility within and John’s record of achievement will ben- because I believe that we at the Fed- between the databases of the various efit America’s police officers for years eral level ought to encourage and pro- agencies that maintain information to come. mote police departments around the relevant to determining whether a visa John Timoney immigrated to the nation to promote just this kind of should be issued or whether an alien United States from Ireland at the age progress—I want to draw special atten- should be admitted into the United of 13. In 1969, after graduating from tion to it. States. This legislation will require high school, he joined the ranks of the First, Commissioner Timoney was at interoperable real-time sharing of law New York Police Department. He spent the forefront of efforts to get both the enforcement and intelligence informa- the first twelve years of his career as a New York and Philadelphia Police De- tion relevant to the issuance of a visa patrol officer and later a narcotics in- partments to embrace Compstat, a or an alien’s admissibility to the U.S. vestigator on the streets of Harlem and high-tech system which allows police The provision will require that infor- the South Bronx. As his reputation for departments to monitor and analyze mation is made available, although integrity, innovation, and perseverance crime data better, empowering them to with the appropriate safeguards for pri- grew, he rose through the department’s re-deploy resources as needed.

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00164 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S13937 Compstat was revolutionary policing in Our nation wept which former President Clinton and both New York and Philadelphia, con- For the twin brothers former Majority Leader Bob Dole chair tributing to dramatic crime reductions Who know lie in a together. The Fund provides edu- in both cities. Silent reverie cational assistance for the children and As two lions Second, Commissioner Timoney has Suddenly tamed spouses of those killed or permanently been an outspoken proponent of com- A ghastly graveyard disabled in the terrorist attacks of Sep- munity policing, which was an integral Of pride and greatness. tember 11. I would like to thank my portion of 1994’s crime bill. The Com- Yet buried within friend and colleague Senator ROCKE- missioner has set a high standard in The solid and proud FELLER for contacting my office to the practice of policing multi-ethnic Red, white, and blue seek guidance on directing the dona- and multi-racial communities by em- Of American pride. tions. I am very grateful to Senators A stoic symbol powering precinct captains and other BYRD and ROCKEFELLER for joining me Of freedom and unity officers in local areas to develop con- In a world in receiving the people of Williamson’s structive relationships with members Of stricken terror. donation earlier this month. of the communities they police. I’ve al- Its red, the blood of This small town in southern West ways believed that the more integrated The innocent whose Virginia, thousands of miles away from cops are with the communities they Lives were stolen from them; the Twin Towers, has experienced its serve the better. Commissioner Its white, own share of adversity, including a Timoney has lived that principle, and Purity and strength; devastating flood in 1977. Perhaps the great accomplishments of his ca- And its blue, the melancholy tears Williamson’s struggle to overcome its Of sadness. reer are due in no small part to his pro- These bands of red own set of hurdles has made the citi- motion of community policing. And white zens there especially sympathetic to I am grateful to be able to call John Bring us together the tremendous obstacles that the peo- Timoney a friend. The people of Phila- As one. ple of New York City are facing. At the delphia will miss his law enforcement A single same time as Williamson has reached expertise, the police officers of his de- Voice declaring freedom out to those affected by the terrorist partment will miss his extraordinary And a fearless life attacks in New York City, they are leadership, and the nation’s law en- For all the world. working to tackle financial difficulties Strength resonating forcement executives will lose one of From the richness in their own backyard and I applaud their brightest lights. Good luck in Of the colors their efforts. An aggressive economic your future endeavors John. A grateful Bind us together development effort is underway to se- and safer nation thanks you for your In a single dance cure a wood products park, most aqua- service. Of peace and culture and a stronger market for coal. A single whispered word— f Many Americans have felt a personal Liberty. need in their everyday lives to reach WHISPERS OF LIBERTY f out to their neighbors, coworkers or Mr. HATCH. Mr. President, I would WILLIAMSON, WEST VIRGINIA even strangers to offer assistance, both like to take a minute to bring to the large and small. We saw it in New York Mrs. CLINTON. Mr. President, I rise attention of this great body the words with people standing in line for hours today to express my deepest gratitude of Rachel Bennett. Rachel is a 13-year to donate blood, and with families do- to and admiration for the citizens of old constituent who has written ‘‘Whis- nating food to rescue workers who were Williamson in Mingo County, West Vir- pers of Liberty,’’ a moving poem about toiling around the clock, or companies ginia for their generosity and sacrifice the events of September 11. These ter- who wanted to contribute funding and on behalf of others. Their donation of rorist attacks had a profoundly sober- resources. ‘‘What can I do to help?’’ is approximately $26,000 to the ‘‘Families ing effect on most of the world. As a common, if not universal refrain that of Freedom Scholarship Fund,’’ to aid Americans we were forcefully reminded Americans have spoken, or thought the children of those lost in the ter- of the ideals and principles which unite quietly to themselves, since the at- rorist attacks on our country over us as a nation. I have read and heard tacks. The people of Williamson have three months ago, is symbolic of the many explain the significance and matched those noble words with ac- tremendous compassion and unity of aftermath of September 11, but few tion, and New Yorkers thank them the American people. I would like to have done so as well as Rachel. She from the bottom of our hearts for their thank the citizens of Williamson on be- poignantly reminds us of the dreams outpouring of compassion. half of all the families who will be able that were shattered by the terrorists, Winston Churchill once said, ‘‘We to take advantage of this scholarship while at the same time she reminds us make a living by what we get. We fund. They have reached deep into of the values and ideas that have ral- make a life by what we give.’’ During their hearts and pockets to send the lied Americans to help one another this time of tremendous grief and anx- children affected by the September 11 deal with these tragedies. I would like iety that’s being felt in all corners of attacks a truly beautiful gift. to read this poem for the record: the world, the citizens’ of Williamson Earlier this month, I met with efforts to ensure that children who WHISPERS OF LIBERTY Williamson Mayor Estil ‘‘Breezy’’ have been affected by these terrible at- (By Rachel Bennett) Bevins, Fire Chief Grover ‘‘Curt’’ Phil- tacks are not forgotten will provide How could a moment ips and Police Chief Roby Pope when comfort to many and inspiration for us So change everything? they presented $26,000 in donations in all. A speechless nation Senator BYRD’s office. Shortly after f Cried out in despair September 11, the City Council voted In unison as one. to donate $5,000 to the victims of the RETIREMENT OF U.S. ATTORNEY How could in a moment JAMES TUCKER So many lives be put out, attacks on the World Trade Center. Like a field of flowers Over $15,000 was collected on Sep- Mr. COCHRAN. Mr. President, one of Closing in the mid of summer tember 14 through a ‘‘boot drive’’ the best and most respected attorneys Never to bloom again? where police officers, firefighters and to have ever served in our State as an And in that moment, others took to the streets to stop cars assistant U.S. Attorney is retiring. How many chances to collect money. As I told Mayor James Tucker has served the U.S. De- Of being a grandfather, Bevins, Williamson’s trememdous ef- partment of Justice in the Southern A husband, a mother forts and energy symbolize the spirit of Of knowing the joys District of Mississippi for 30 years. Of life and love ‘‘small-Town America.’’ I have an enormous amount of re- Be gone? I suggested that the town consider spect and appreciation for the way Like a candle sending their donations to the ‘‘Fami- James Tucker has carried out the im- Doused with tears of despair, lies of Freedom Scholarship Fund,’’ portant responsibilities of his job. He

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00165 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S13938 CONGRESSIONAL RECORD — SENATE December 20, 2001 was a true professional in every re- as during the 1990 trial of Newton Alfred nate to have had the opportunity to spect. He was completely honest and Winn, convicted in connection with the dis- work closely with Mr. Galvin over the trustworthy, and he was tenacious in appearance of Jackson socialite Annie Lau- years. rie Hearin. bringing to justice those who violated But that calmness belies a quiet ruthless- Since beginning his tenure with the the laws of the United States. ness, he said. Park Service in 1963 as a civil engineer I commend him for a job well done As someone has remarked, Colette said, at Sequoia National Park, Mr. Galvin and wish him much continued success Tucker is the kind of prosecutor who slits and satisfaction in the years ahead. the throat of a defense lawyer, who doesn’t has held several positions with the I ask unanimous consent that an ar- realize it until his head is in his lap. Park Service throughout the country, ticle from the Clarion Ledger of De- Now that Tucker’s gone, he joked, ‘‘I’m including a period in the Southwest cember 17, highlighting his illustrious going to start trying all my cases in federal Regional Office in Santa Fe. He also court.’’ worked for several years in Boston in career be printed in the RECORD. What may say the most about Tucker is There being no objection, the article that he has the admiration of not only the the Northeast Regional Office, and as was ordered to be printed in the defense bar, but judges as well, Colette said. the Director of the Denver Services RECORD, as follows: ‘‘He’s probably the most competent pros- Center, the planning, design, and con- TOP CORRUPTION FIGHTER LEAVING POST ecutor I ever heard,’’ said U.S. District struction arm of the Park Service. (By Jerry Mitchell) Judge William H. Barbour Jr. ‘‘The district Since 1985 Mr. Galvin has held two po- Mississippi’s top corruption fighter over was lucky to have him for so many years.’’ Even as Mississippi has changed U.S. attor- sitions that brought him into frequent the past 30 years—Assistant U.S. Attorney neys in the Southern District, Tucker has re- contact with the Congress and our James Tucker—is leaving the U.S. attorney’s mained as the chief of the criminal division. Committee, as the Associate Director office to go into private practice. ‘‘If you could combine honor, integrity, Former U.S. Attorney Brad Pigott said he for Planning and Development from courage and expertise in the same person, relied on Tucker during his tenure. 1989 to 1997, and twice as the Deputy ‘‘He’s an ideal public servant,’’ Pigott said. what you’d have is James Tucker,’’ Attorney Director of the National Park Service, ‘‘He’s personally modest and quiet. I’ve spent General Mike Moore said ‘‘they don’t make some time with him in the foxhole, I can from 1985 to 1989, and again from 1997 ’em that way anymore. He is the ultimate vouch for his integrity in every way. He de- until now. professional.’’ Jan. 3 will mark Tucker’s last day of work serves a very wonderful reputation.’’ In his capacity as Associate Director Defense lawyers say Tucker helped provide at the U.S. attorney’s office, where he has and Deputy Director, Mr. Galvin has continuity to the sometimes revolving door worked since 1971. After that, he’ll join the of the U.S. attorney’s office, serving once as been involved in every major policy Butler Snow law firm in Jackson, where he’ll interim U.S. attorney. issue facing the National Park Service. be part of the litigation division. Tucker said he is sad to be leaving on one ‘‘Many people, including me, felt that with He has been one of the National Park hand but is enthused about his new job. him there, there was somebody to talk to Service’s greatest resources, and his ‘‘After 30 years with the Department of Jus- who would listen,’’ said defense lawyer Tom knowledge and judgment about na- tice, it hurts a little to cut the string, but Royals of Jackson. ‘‘It’s a real loss to our justice system to tional park issues is very much re- I’m looking forward to a challenging new ca- see James Tucker leave,’’ said defense law- spected, both within the agency and reer.’’ here in Congress. Whenever the Com- A no-nonsense retired Naval Reserve offi- yer Dennis Sweet of Jackson. ‘‘He’s a tre- cer, Tucker has shunned the limelight, de- mendous lawyer, and he’s been tremendously mittee held a hearing on an especially spite taking on very public prosecutions of fair. I just hope whoever replaces him does as important legislative issue affecting Mississippi public officials, including Oper- good a job for the U.S. attorney’s office as he the National Park Service, we would ation Pretense, which led to convictions of 43 has.’’ Current U.S. Attorney Dunn Lampton said often request that Mr. Galvin testify, county supervisors and 11 vendors on corrup- he is certainly going to miss Tucker. ‘‘He’s so that the members of the Committee tion charges. His long list of those prosecuted has in- an institution,’’ Lampton said. ‘‘He knows could benefit from his expertise and ad- cluded members of the Mississippi Senate, more off the top of his head than you can vice. Because of his broad and varied the Highway Commission, the Public Service find out doing research in books.’’ background, he could speak with as Commission and the Jackson City Council. Because of Tucker, Lampton said he never much knowledge on the merits of par- His work also helped put former Biloxi worried about the criminal side of his office. Now he’ll have to find a replacement, ticular construction project within a Mayor Pete Halat behind bars on federal park as he could on general policy charges in connection with the 1987 killing of which he’ll probably choose from within his Halat’s former law partner, Vincent Sherry office, he said. ‘‘We’ll all have to work to- issues affecting the entire park system. and his wife, Margaret. gether to take up the slack.’’ I would like to recognize his efforts, ‘‘I’ve always had strong feelings about pub- Those outside legal circles also praise Tucker. especially in his role in the National lic officials violating the trust,’’ Tucker Park Service leadership, to maintain said. ‘‘I always felt if I had the power to ‘‘There was a time when James Tucker was right those kinds of wrongs, I ought to do the only defense standing between us and and protect the integrity of the Na- it.’’ total corruption in Mississippi,’’ said veteran tional Park System. The Park Service In 1983 and 1998, the Provine High School journalist Bill Minor, who wrote about Tuck- has been fortunate to have had many graduate received the highest award an as- er in his new book, Eyes on Mississippi: A strong and far-sighted leaders in its sistant U.S. attorney can receive from the Fifty-Year Chronicle of Change. ‘‘In my esti- mation, he ranks among the true heroes that history. We have been extremely fortu- Justice Department—the Superior Perform- nate that Denis Galvin has continued ance Award. I’ve known over my 54-year career.’’ ‘‘That’s one of my great honors,’’ Tucker Former Public Safety Commissioner and in that great tradition. As he embarks said, ‘‘winning that award twice.’’ FBI agent Jim Ingram said Tucker will be on a new chapter in his life I would like Perhaps better than an award was the com- sorely missed by all of Mississippi. ‘‘Almost to take this opportunity to thank ment he said he received the other day from all of us can be replaced. He can’t.’’ Denny for all of his assistance to me a current county supervisor: ‘‘He said, ‘You f and to other members of the Senate, don’t realize it, but what y’all did in Pre- tense has helped us honest supervisors for ADDITIONAL STATEMENTS and I extend my best wishes upon his years and years and will for years to come. retirement.∑ Because of that, we can threaten people with another Pretense if they fool around (with RECOGNIZING THE CAREER OF f corruption).’ ’’ DENIS GALVIN UPON HIS RE- Moore credited Tucker with cleaning up TIREMENT FROM THE NATIONAL TRIBUTE TO CARAN KOLBE MCKEE corruption in Mississippi: ‘‘He’s helped re- PARK SERVICE turn integrity to public office.’’ ∑ ∑ Mr. GRASSLEY. Mr. President, I rise Tucker’s expertise has helped pave the way Mr. BINGAMAN. Mr. President, I for many other lawyers, including Moore, would like to take a moment to recog- to pay tribute to a loyal friend and who first go to know Tucker when as a dis- nize and thank Denis Galvin, the Dep- trusted advisor who left my staff in trict attorney in Pascagoula he pursued cor- uty Director of the National Park late August. Caran Kolbe McKee came ruption cases against local supervisors. Service, who will be retiring at the end to work for me 14 years ago. She served ‘‘He really helped me through those tough of this year after a career of almost 40 the people of Iowa in a number of ca- times, and he’s continued to be my friend,’’ years with the Park Service. The Com- pacities in my office. In every case, Moore said. ‘‘He was a mentor to me.’’ Defense lawyer John Colette of Jackson mittee on Energy and Natural Re- Caran demonstrated remarkable lead- said what makes Tucker special is his ability sources has jurisdiction over national ership qualities, steadfastness of pur- to remain calm, even amidst a storm, such park issues, and we have been fortu- pose, and the kind of problem-solving

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00166 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S13939 ability that can make our Government reply that was not just a piece of paper State Joint Enforcement Agreements work for the people in the best way but a substantive, informative re- have provided a long-lasting founda- possible. sponse. In this way, she helped rep- tion for this important program. In Caran came to the Senate in 1987, resentative government work for the particular, the state of South Carolina when she joined my staff as assistant people in a fundamental, meaningful and its fisheries resources have bene- press secretary. Two years later, she way. fited greatly through his work. In large became my press secretary. During this Caran Kolbe McKee was a true public part, Gene was responsible for con- time, she dealt with a range of impor- servant. She was a mentor to many of vincing South Carolina that working tant issues, including the Gulf War, Su- her fellow staff members. And she was jointly with NMFS could serve to sub- preme Court nominations, whistle- an inspiration for the way she handled stantially improve protection of our blower protections, a farm bill, civil challenges—both professional and per- fishery resources far beyond the level rights legislation, a campaign to apply sonal—with compassion, strength and we could achieve working separately. labor and employment laws to Con- courage. Now Caran has decided to His initiative led to a Joint Enforce- gress, and the budget battle of 1990. spend more time with her family. She ment Agreement that is improving the She made certain that Iowans had ac- will be greatly missed, but I admire her management and protection of South cess to accurate and timely informa- decision and wish her the very best. Carolina’s precious marine resources. tion through the news media and fos- Above all, I extend to her my deepest This program has proven so successful tered a better understanding of the thanks.∑ that it is now the ‘‘gold standard’’ way in which the issues addressed by f model of marine resource enforcement, Congress affect the lives of individuals and it is being established in coastal RETIREMENT OF NOAA SPECIAL and families. states around the nation. These cooper- AGENT IN CHARGE, EUGENE In 1994, Caran took on new challenges ative programs and relationships will PROULX as a special assistant. She developed be the legacy of Gene’s leadership. initiatives and reached out to the ∑ Mr. HOLLINGS. Mr. President, I rise In closing, although we hate to see grassroots. Caran brought to her work today to express appreciation and con- him go, I once again wish to congratu- a great appreciation for the people who gratulations to Eugene Proulx on the late Agent Proulx on his exemplary ca- make Iowa the extraordinary place occasion of his retirement as the Spe- reer. Through his tireless efforts, he that it is. She grew up on a farm in cial Agent in Charge of the Southeast has made a difference in protecting the Western Iowa, graduated from Iowa Enforcement Division of NOAA’s Na- marine resources of South Carolina and State University, and maintains many tional Marine Fisheries Service. For the Nation.∑ close family ties in Iowa. over 28 years, Gene has dedicated him- f Caran is the kind of person who is al- self to the protection of our nation’s ways looking ahead and making a plan oceans and living marine resources. His IN MEMORY OF THE HONORABLE to improve things for others no matter service of 3 years with the United DERAN KOLIGIAN what their stage and place in life. Just States Coast Guard and 25 years with ∑ Mrs. BOXER. Mr. President, I rise last week, President Bush signed into the National Marine Fisheries Serv- today to recognize the recent passing law legislation re-authorizing the Drug ice’s Office for Law Enforcement (OLE) of Fresno County Supervisor Deran Free Communities Act, a bill I spon- have been exemplary, and he is being Koligian, an extraordinary public serv- sored in the Senate. During his re- appropriately honored for this service ant and Californian who died on De- marks, the President took time to rec- at an event to be held on December 21st cember 11th at the age of 74, after a ognize a coalition I launched in Iowa to in the Southeast region. two-year battle with cancer. address our state’s growing drug prob- His commitment and leadership with Deran Koligian was a Fresno County lem. Called ‘‘Face It Together’’—or the OLE have been reflected through icon, having served as a Supervisor for FIT—it is the first-ever community- his service as a Special Agent, National two decades. He faithfully served his based, statewide anti-drug coalition. Training Coordinator, Assistant Spe- constituents up until the day of his The goal is to help Iowans work to- cial Agent in Charge, Deputy Special death. gether to keep their neighborhoods, Agent in Charge, and as Special Agent Deran Koligian set a high standard of schools, workplaces and communities in Charge and Acting Chief. Gene’s integrity and decency. He was a man of drug-free. I hope to see this productive service as a Special Agent in Charge in- great determination and dedication effort continue in the years ahead. No cluded assignments in both the South- who worked tirelessly for Fresno Coun- individual deserves more credit for west and Southeast Divisions in addi- ty and California and was loved and re- making FIT a reality and a success tion to his many years of service as an spected by so many. He was a farmer, a than Caran Kolbe McKee. Her vision agent at various duty posts in the World War II veteran, a family man for the project, gift for bringing people Northeast Division as well as several and an honorable Fresno County Su- together and dedication to making the assignments to Headquarters in Silver pervisor. He will be greatly missed by program happen were vitally impor- Spring as both an agent and as the Act- all. tant. ing Chief of the Office for a period of I ask that the Fresno Bee editorial In recent years, Caran also managed three months. from December 13, 2001, be printed in my correspondence with Iowans. In the Gene has been the example of a pub- the RECORD. And, on behalf of the Sen- Senate, I work hard to made the proc- lic servant who routinely gives 100 per- ate, I extend our thoughts and prayers ess of representative government work. cent towards his responsibilities. His to the Koligian Family on the loss of I keep in close touch with Iowans by enthusiasm, dedication and energy an extraordinary man. returning home when the Senate is not level are widely known. His corporate There being no objection, the mate- in session. And since 1981, I have con- knowledge, fisheries expertise, com- rial was ordered to be printed in the ducted a meeting in each of Iowa’s 99 mon sense, interpersonal skills and RECORD, as follows: counties at least one time every year. gracious humility are all traits that [From the Fresno Bee, Dec. 13, 2001] I am committed to an active dialogue are exemplary and have facilitated his DERAN KOLIGIAN—A POWERFUL VOICE IN with constituents, so at town meetings contributions to NOAA and our na- FRESNO COUNTY, STATE POLITICS FALLS SI- I always say representative govern- tion’s resource missions. The accom- LENT ment is a two-way street. While I have plishments of the Office of Law En- The odds suggest we shall not soon see the come to them for a meeting about the forcement in the areas of Vessel Moni- likes of Deran Koligian in public life. The issues, they also have a responsibility toring Systems, Sanctuaries Enforce- longtime Fresno County supervisor, who died to write to me expressing concerns and ment, Accreditation, and Cooperative Tuesday at the age of 74, embodied a rare set views and asking questions. Well, each of skills and virtues. He was a bluntly honest Enforcement were all strongly facili- farmer, a man of the soil who so deeply loved and every one of these letters or e-mail tated through the support of Gene’s vi- his roots he lived his entire life on his fam- messages deserves and receives as an- sion and leadership. ily’s original 40-acre homestead. He was also swer from me. Caran made sure that Gene’s work with the national Coop- a talented and shrewd politician, in the very Iowans who wrote or called received a erative Enforcement program and the best sense: clear about his philosophy and

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00167 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S13940 CONGRESSIONAL RECORD — SENATE December 20, 2001 objectives, civil in his behavior and capable special health insurance program for from the President of the United of inspired compromise when conditions de- children that ultimately became the States submitting sundry nominations manded it. Childrens’ Health Insurance Program. which were referred to the appropriate Koligian spent most of his adult life in Today, this program throughout the committees. public service. He enlisted in the Army at age 18, fought in the Philippines in World Nation provides health care for mil- (The nominations received today are War II, and came home to attend Fresno lions of children who would otherwise printed at the end of the Senate pro- State. The family farm sustained him, but go without the basic care they need to ceedings.) grow up healthy and flourish. could not contain him. He served many years f on local school boards and was first elected Dr. Cohen was a well-respected and to the county Board of Supervisors in 1982. In world-renowned physician and teacher. MESSAGES FROM THE HOUSE doing so, he became the first Armenian- Over the course of his illustrious ca- At 9:33 a.m., a message from the American elected to public office in the reer, he held many faculty positions at county. House of Representatives, delivered by the Yale University School of Medi- Ms. Niland, one of its reading clerks, Defending Valley agricultural lands cine, culminating with his appoint- against urban encroachment was among announced that the House has agreed ment as the child Psychiatrist-in-Chief Koligian’s most important principles. He al- to the amendment of the Senate to the of the Yale Children’s Hospital and Di- most single-handedly pushed Fresno’s bill (H.R. 2199) to amend the National rector of the Child Study Center at growth away from his district, mostly lying Capital Revitalization and Self-Gov- Yale School of Medicine. He held these to the west of Freeway 99, and out to the ernment Improvement Act of 1997 to northeast. He was immensely popular among positions for the past 18 years, which, permit any Federal law enforcement farmers for his defense of agriculture. He as anyone in medicine will tell you, is agency to enter into a cooperative wasn’t able to stop westward sprawl com- an incredible testimony to his stature agreement with the Metropolitan Po- pletely—no one individual could—but it is and leadership. only recently that significant residential de- He has been honored by the Institute lice Department of the District of Co- velopment has taken place on his turf. of Medicine, the National Academy of lumbia to assist the Department in Koligian was deeply opposed to the county carrying out crime prevention and law using bonds to raise money for capital ex- Sciences, the National Commission on Children, and the American Psy- enforcement activities in the District penditures, arguing that it was fiscally irre- of Columbia if deemed appropriate by sponsible. He usually managed to persuade chiatric association for his outstanding the rest of the board to support that posi- work. He received numerous lifetime the Chief of the Department and the tion. It was one of the bones of contention research awards, including the United States Attorney for the District between Koligian and The Bee, and he won Strecker Award from the Institute of of Columbia, and for other purposes. the argument more often than he lost. the Pennsylvania Hospital and the The message also announced that the But—as with most of his adversaries—we Agnes Purcell McGavin Award for Pre- House has agreed to the amendment of always had a deep respect for Koligian. His the Senate to the bill (H.R. 2657) to combination of honesty and political savvy vention from the APA. He was recog- nized as a Sterling Professor of Child amend title 11, District of Columbia is one we do not often see, and we are all the Code, to redesignate the Family Divi- poorer for that.∑ Psychiatry, Pediatrics and Psychology. sion of the Superior Court of the Dis- f He served as President of the Inter- national Association of Child and Ado- trict of Columbia as the Family Court HONORING DR. DONALD J. COHEN lescent Psychiatry and Allied Profes- of the Superior Court, to recruit and ∑ Mr. LIEBERMAN. Mr. President, sions since 1993 and published over 300 retain trained and experienced judges today I honor Dr. Donald J. Cohen, a papers and books. Dr. Cohen was also to serve in the Family Court, to pro- doctor, an author, an outstanding psy- awarded a Doctor of Philosophy, mote consistency and efficiency in the chiatrist, a true professional, and care- Honoris Causa, from the Bar Ilan Uni- assignment of judges to the Family giver and friend to the thousands of versity in Israel. Court and in the consideration of ac- people who had the good fortune of As you can see, Dr. Donald Cohen was tions and proceedings in the Family knowing him. Today I grieve for my quite a remarkable man. So many peo- Court, and for other purposes. friend, as he recently passed away after ple have been touched in some way by The message further announced that only 61 short years on this Earth. I this great man’s dedication. the House has agreed to the amend- could think of no better tribute to this It can be said that Dr. Cohen indeed ment of the Senate to the concurrent great man than to name the very pro- achieved what most of us strive for, to resolution (H. Con. Res. 289) directing gram he envisioned so many years ago make a difference. For those of us who the Clerk of the House of Representa- to help the victims of violence-related knew him, for those of us in whose life tives to make technical corrections in stress in his honor. Thus, I submitted Donald made a difference, his passing the enrollment of the bill H.R. 1. an amendment to the Labor, Health comes painfully too soon. We mourn The message also announced that and pray that Donald’s soul will be em- and Human Services appropriations bill pursuant to section 3(b) of the Public braced in the warmth of eternal life to amend Section 582 of the Public Safety Officer Medal of Valor Act of and that God will comfort and Health Service Act to rename this 2001 (42 U.S.C. 15202), the Speaker has strengthen Phyllis, his wife, their chil- critically important grant program, appointed the following members on dren and grandchildren, and all of the the ‘‘Donald J. Cohen National Child the part of the House of Representa- family, friends, colleagues and patients Traumatic Stress Initiative.’’ I am tives to the Medal of Valor Review who will miss him. I know the spirit proud to say that this amendment has Board for a term of 4 years: Mr. Tim and warmth of Dr. Donald J. Cohen been accepted by both the House and Bivens of Dixon, Illinois and Mr. Wil- will burn on in the hearts of those who Senate and for that I thank my col- liam J. Nolan of Chicago, Illinois. grieve him. It is with spirit that I ask leagues. The message further announced that my colleagues to honor this man with Dr. Cohen did more in his 61 years the House has passed the following bill, the dedication of the Donald J. Cohen than most anyone else could ever hope without amendment: National Child Traumatic Stress Ini- to accomplish in a lifetime. He started S. 1741. An act to amend title XIX of the tiative.∑ at Brandeis University in 1961 on the Social Security Act to clarify that Indian course to a medical career and then f women with breast or cervical cancer who are eligible for health services provided went on to graduate from Yale Univer- MESSAGES FROM THE PRESIDENT under a medical care program of the Indian sity School of Medicine in 1966. Over Messages from the President of the Health Service or of a tribal organization are the following 35 years, Dr. Cohen dedi- United States were communicated to included in the optional medicaid eligibility cated his life to helping children and the Senate by Ms. Evans, one of his category of breast or cervical cancer pa- adolescents. Donald spent virtually all secretaries. tients added by the Breast and Cervical Pre- vention and Treatment Act of 2000. of his adult life working tirelessly to f develop and promote programs to as- The message also announced that the sist children. I recently learned from EXECUTIVE MESSAGES REFERRED House has passed the following bills, in my colleague, Senator DODD, that Dr. As in executive session the Presiding which it requests the concurrence of Cohen was the first person to suggest a Officer laid before the Senate messages the Senate:

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00168 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S13941 H.R. 2739. An act to amend Public Law 107– partment and the United States Attorney for H. Con. Res. 292. Concurrent resolution 10 to authorize a United States plan to en- the District of Columbia, and for other pur- supporting the goals of the Year of the Rose. dorse and obtain observer status for Taiwan poses. at the annual summit of the World Health H.R. 2657. An act to amend title 11, District f Assembly in May 2002 in Geneva, Switzer- of Columbia Code, to redesignate the Family land, and for other purposes. Division of the Superior Court of the District H.R. 2751. An act to authorize the Presi- of Columbia as the Family Court of the Su- MEASURES REFERRED perior Court, to recruit and retain trained dent to award a gold medal on behalf of the The following bills and joint resolu- Congress to General Henry H. Shelton and to and experienced judges to serve in the Fam- provide for the production of bronze dupli- ily Court, to promote consistency and effi- tion were read the first and the second cates of such medal for sale to the public. ciency in the assignment of judges to the times by unanimous consent, and re- H.R. 2869. An act to provide certain relief Family Court and in the consideration of ac- ferred as indicated: for small businesses from liability under the tions and proceedings in the Family Court, H.R. 38. An act to provide for additional Comprehensive Environmental Response, and for other purposes. lands to be included within the boundaries of Compensation, and Liability Act of 1980, and S. 1438. An act to authorize appropriations the Homestead National Monument of Amer- to amend such Act to promote the cleanup for fiscal year 2002 for military activities of ica in the State of Nebraska, and for other and reuse of brownfields, to provide financial the Department of Defense, for military con- purposes; to the Committee on Energy and assistance for brownfields revitalization, to structions, and for defense activities of the Natural Resources. Department of Energy, to prescribe per- enhance State response programs, and for H.R. 2561. An act to increase the rate of sonnel strengths for such fiscal year for the other purposes. special pension for recipients of the medal of H.R. 3275. An act to implement the Inter- Armed Forces, and for other purposes. honor, to authorize those recipients to be national Convention for the Suppression of The enrolled bills were signed subse- furnished an additional medal for display Terrorist Bombings to strengthen criminal quently by the president pro tempore purposes, to increase the criminal penalties laws relating to attacks on places of public (Mr. BYRD). associated with misuse of fraud relating to use, to implement the International Conven- the medal of honor, and for other purposes; tion of the Suppression of the Financing of At 12:43 p.m., a message from the to the Committee on Veterans’ Affairs. Terrorism, to combat terrorism and defend the Nation against terrorist acts, and for House of Representatives, delivered by H.R. 2739. An act to amend Public Law 107– other purposes. Ms. Kelaher, one of its clerks, an- 10 to require a United States plan to endorse H.R. 3525. An act to enhance the border se- nounced that the House has passed the and obtain observer status for Taiwan at the curity of the United States, and for other following bills, without amendment: annual summit of the World Health Assem- bly in May 2002 in Geneva, Switzerland, and purposes. S. 1202. An act to amend the Ethics in Gov- for other purposes; to the Committee on For- H.R. 3529. An act to provide tax incentives ernment Act of 1978 (5 U.S.C. App.) to extend eign Relations. for economic recovery and assistance to dis- the authorization of appropriations for the placed workers. Office of Government Ethics through fiscal H.R. 2776. An act to designate buildings 315, year 2006. 318, and 319 located at the Federal Aviation At 12:05 p.m., a message from the S. 1714. An act to provide for the installa- Administration’s William J. Hughes Tech- House of Representatives, delivered by tion of a plaque to honor Dr. James Harvey nical Center in Atlantic City, New Jersey, as Ms. Kelaher, one of its clerks, an- Early in the Williamsburg, Kentucky Post the ‘‘Frank R. Lautenberg Aviation Security Complex’’; to the Committee on Commerce, nounced that the House has agreed to Office Building. S. 1793. An act to provide the Secretary of Science, and Transportation. the report of the committee of con- H.R. 3160. An act to amend the ference on the disagreeing votes of the Education with specific waiver authority to respond to conditions in the national emer- Antiterrorism and Effective Death Penalty two Houses on the amendment of the gency declared by the President on Sep- Act of 1996 with respect to the responsibil- Senate to the bill (H.R. 3338) making tember 14, 2001. ities of the Secretary of Health and Human appropriations for the Department of The message also announced that the Services regarding biological agents and tox- Defense for the fiscal year ending Sep- House has passed the following bills and ins, and to amend title 18, United States tember 30, 2002, and for other purposes. joint resolution, in which it requests the Code, with respect to such agents and toxins; The message also announced that the concurrence of the Senate: to the Committee on the Judiciary. House has passed the following joint H.R. 1432. An act to designate the facility H.R. 3275. An act to implement the Inter- of the United States Postal Service located national Convention for the Suppression of resolutions, in which it requests the at 3698 Inner Perimeter Road in Valdosta, Terrorist Bombings to strengthen criminal concurrence of the Senate: Georgia, as the ‘‘Major Lyn McIntosh Post laws relating to attacks on places of public H.J. Res. 79. A joint resolution making fur- Office Building’’. use, to implement the International Conven- ther continuing appropriations for the fiscal H.R. 2561. An act to increase the rate of tion of the Suppression of the Financing of year 2002, and for other purposes. special pension for recipients of the medal of Terrorism, to combat terrorism and defend H.J. Res. 80. A joint resolution appointing honor, to authorize those recipients to be the Nation against terrorist acts, and for the day for the convening of the second ses- furnished an additional medal for display other purposes; to the Committee on the Ju- sion of the One Hundred Seventh Congress. purposes, to increase the criminal penalties diciary. The message further announced that the associated with misuse or fraud relating to H.R. 3391. An act to amend title XVIII of House has agreed to the following concurrent the medal of honor, and for other purposes. the Social Security Act to provide regu- resolution, in which it requests the concur- H.R. 3423. An act to amend title 38, United latory relief and contracting flexibility rence of the Senate: States Code, to enact into law eligibility of under the Medicare Program; to the Com- H. Con. Res. 295. Concurrent resolution certain veterans and their dependents for mittee on Finance. providing for the sine die adjournment of the burial in Arlington National Cemetery. H.R. 3423. An act to amend title 38, United first session of the One Hundred Seventh H.R. 3487. An act to amend the Public States Code, to enact into law eligibility of Congress. Health Service Act with respect to health certain veterans and their dependents for professions programs regarding the field of burial in Arlington National Cemetery; to At 12:28 p.m., a message from the nursing. the Committee on Veterans’ Affairs. House of Representatives, delivered by H.R. 3504. An act to amend the Public Health Service Act with respect to qualified H.R. 3525. An act to enhance the border se- Ms. Kelaher, one of its clerks, an- curity of the United States, and for other nounced that the Speaker has signed organ procurement organizations. H.R. 3507. An act to authorize appropria- purposes; to the Committee on the Judici- the following enrolled bills: tions for the Coast Guard for fiscal year 2002, ary. H.R. 643. An act to reauthorize the African and for other purposes. H.J. Res. 75. Joint resolution regarding the Elephant Conservation Act. H.J. Res. 75. A joint resolution regarding monitoring of weapons development in Iraq, H.R. 645. An act to reauthorize the Rhinoc- the monitoring of weapons development in as required by United Nations Security eros and Tiger Conservation Act of 1994. Iraq, as required by United Nations Security Council Resolution 687 (April 3, 1991); to the H.R. 2199. An act to amend the National Council Resolution 687 (April 3, 1991). Committee on Foreign Relations. Capital Revitalization and Self-Government The message further announced that the The following concurrent resolution Improvement Act of 1997 to permit any Fed- House has agreed to the following concurrent eral law enforcement agency to enter into a resolution, in which it requests the concur- was read, and referred as indicated: cooperative agreement with the Metropoli- rence of the Senate: H. Con. Res. 279. Concurrent resolution rec- tan Police Department of the District of Co- H. Con. Res. 279. Concurrent resolution rec- ognizing the service of the crew members of lumbia to assist the Department in carrying ognizing the service of the crew members of the USS Enterprise Battle Group during its out crime prevention and law enforcement the USS Enterprise Battle Group during its extended deployment for the war effort in activities in the District of Columbia if extended deployment for the war effort in Afghanistan; to the Committee on Armed deemed appropriate by the Chief of the De- Afghanistan. Services.

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00169 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S13942 CONGRESSIONAL RECORD — SENATE December 20, 2001 MEASURES PLACED ON THE EC–4967. A communication from the Dep- of the Interior, transmitting, pursuant to CALENDAR uty Associate Administrator of the Office of law, a report relative to Judgement Fund Acquisition Policy, General Service Admin- Use and Distribution Plan; to the Committee The following bill was read the first istration, transmitting, pursuant to law, the on Indian Affairs. and second times by unanimous con- report of a rule entitled ‘‘Federal Acquisi- EC–4978. A communication from the Acting sent, and placed on the calendar: tion Regulations; Federal Acquisition Cir- Director of the Office of Surface Mining, De- H.R. 3507. An act to authorize appropria- cular 2001–02’’ (FAC2001–02) received on De- partment of the Interior, transmitting, pur- tions for the Coast Guard for fiscal year 2002, cember 18, 2001; to the Committee on Govern- suant to law, the report of a rule entitled and for other purposes. mental Affairs. ‘‘West Virginia Regulatory Program’’ (WV– EC–4968. A communication from the Assist- 093–FOR) received on December 19, 2001; to f ant Secretary of Legislative Affairs, Depart- the Committee on Energy and Natural Re- MEASURES READ THE FIRST TIME ment of State, transmitting, pursuant to sources. The following bills were read the first law, the report of a certification regarding EC–4979. A communication from the Acting the proposed transfer of major defense equip- Director of the Office of Surface Mining, De- time: ment valued (in terms of its original acquisi- partment of the Interior, transmitting, pur- H.R. 400. An act to authorize the Secretary tion cost) at $14,000,000 or more to Australia, suant to law, the report of a rule entitled of the Interior to establish the Ronald Canada, Finland, Kuwait, Malaysia, Spain ‘‘Iowa Regulatory Program’’ (IA–012–FOR) Reagan Boyhood Home National Historic and Switzerland; to the Committee on For- received on December 19, 2001; to the Com- Site, and for other purposes. eign Relations. mittee on Energy and Natural Resources. H.R. 1432. An act to designate the facility EC–4969. A communication from the Assist- EC–4980. A communication from the Acting of the United States Postal Service located ant Secretary of Legislative Affairs, Depart- Director of the Office of Surface Mining, De- in 3698 Inner Perimeter road in Valdosta, ment of State, transmitting, pursuant to partment of the Interior, transmitting, pur- Georgia, as the ‘‘Major Lyn McIntosh Post law, the report of a certification of a pro- suant to law, the report of a rule entitled Office Building’’. posed manufacturing license agreement with ‘‘Pennsylvania Regulatory Program’’ (PA– H.R. 2362. An act to establish the Benjamin France; to the Committee on Foreign Rela- 122–FOR) received on December 19, 2001; to Franklin Tercentenary Commission. tions. the Committee on Energy and Natural Re- H.R. 2742. An act to authorize the construc- EC–4970. A communication from the Assist- sources. tion of a Native American Cultural Center ant Secretary of Legislative Affairs, Depart- EC–4981. A communication from the Acting and Museum in Oklahoma City, Oklahoma. ment of State, transmitting, pursuant to Director of the Office of Surface Mining, De- H.R. 3441. An act to amend title 49, United law, the report of a certification of a pro- partment of the Interior, transmitting, pur- States Code, to realign the policy responsi- posed manufacturing license agreement with suant to law, the report of a rule entitled bility in the Department of Transportation, Japan; to the Committee on Foreign Rela- ‘‘Kentucky Regulatory Program’’ (KY–221– and for other purposes. tions. FOR) received on December 18, 2001; to the H.R. 3487. An act to amend the Public EC–4971. A communication from the Assist- Committee on Energy and Natural Re- Health Service Act with respect to health ant Secretary of Legislative Affairs, Depart- sources. professions programs regarding the field of ment of State, transmitting, pursuant to EC–4982. A communication from the Chair- nursing. law, the report of a certification of a pro- man of the Commission on the Future of the H.R. 3504. An act to amend the Public posed license for the export of defense arti- United States Aerospace Industry, transmit- Health Service Act with respect to qualified cles or services sold commercially under a ting, pursuant to law, a report relative to organ procurement organizations. contract in the amount of $50,000,000 or more aerospace research and development, and H.R. 3529. An act to provide tax incentives to Denmark and Belgium; to the Committee procurement budgets; to the Committee on for economic recovery and assistance to dis- on Foreign Relations. Commerce, Science, and Transportation. placed workers. EC–4972. A communication from the Assist- EC–4983. A communication from the Assist- f ant Secretary of Legislative Affairs, Depart- ant Secretary for Communication and Infor- ment of State, transmitting, pursuant to ENROLLED BILL PRESENTED mation, Department of Commerce, transmit- law, the report of a certification of a pro- ting, pursuant to law, the report of a rule en- The Secretary of the Senate reported posed license for the export of defense arti- titled ‘‘Notice of Solicitation of Grant Appli- that on today, December 20, 2001, she cles or services sold commercially under a cations’’ (RIN0660–ZA06) received on Decem- had presented to the President of the contract in the amount of $50,000,000 or more ber 19, 2001; to the Committee on Commerce, United States the following enrolled to Japan; to the Committee on Foreign Rela- Science, and Transportation. tions. bill: EC–4984. A communication from the Direc- EC–4973. A communication from the Assist- tor of the Bureau of Transportation Statis- S. 1438. An act to authorize appropriations ant Secretary of Legislative Affairs, Depart- tics, Department of Transportation, trans- for fiscal year 2002 for military activities of ment of State, transmitting, pursuant to mitting, pursuant to law, the Transportation the Department of Defense, for military con- law, the report of a certification of a pro- Statistics Annual Report for 2000; to the struction, and for defense activities of the posed license for the export of defense arti- Committee on Commerce, Science, and Department of Energy, to perscribe per- cles or services sold commercially under a Transportation. sonnel strengths for such fiscal year for the contract in the amount of $50,000,000 or more EC–4985. A communication from the Regu- Armed Forces, and for other purposes. to Japan; to the Committee on Foreign Rela- lations Officer, Social Security Administra- EXECUTIVE AND OTHER tions. tion, transmitting, pursuant to law, the re- EC–4974. A communication from the Assist- COMMUNICATIONS port of a rule entitled ‘‘The Ticket to Work ant Secretary of Legislative Affairs, Depart- and Self–Sufficiency Program’’ (RIN0960– The following communications were ment of State, transmitting, pursuant to AF11) received on December 19, 2001; to the laid before the Senate, together with law, the report of a certification of a pro- Committee on Finance. accompanying papers, reports, and doc- posed license for the export of defense arti- EC–4986. A communication from the Direc- uments, which were referred as indi- cles or services sold commercially under a tor of the Policy Directives and Instructions contract in the amount of $50,000,000 or more Branch, Immigration and Naturalization cated: to Germany; to the Committee on Foreign EC–4965. A communication from the Chief Service, Department of Justice, transmit- Relations. ting, pursuant to law, the report of a rule en- Financial Officer of the Export-Import Bank EC–4975. A communication from the Assist- titled ‘‘Adjustment of Certain Fees of the of the United States, transmitting, pursuant ant Secretary of Legislative Affairs, Depart- Immigration Examinations Fee Account’’ to law, the annual report which includes the ment of State, transmitting, pursuant to (RIN1115–AF61) received on December 20, Management Report on Financial State- law, the report of a certification of a pro- 2001; to the Committee on the Judiciary. ments and Internal Accounting Controls, the posed license for the export of defense arti- Report of Independent Accountants and the cles or services sold commercially under a REPORTS OF COMMITTEES Report on Compliance and on Internal Con- contract in the amount of $50,000,000 or more The following reports of committees trol over Financial Reporting for Fiscal Year to Japan; to the Committee on Foreign Rela- 2001; to the Committee on Governmental Af- tions. were submitted: fairs. EC–4976. A communication from the Assist- By Mr. JEFFORDS, from the Committee EC–4966. A communication from the Gen- ant Secretary of Indian Affairs, Division of on Environment and Public Works, with eral Counsel of the Office of Management Transportation, Department of the Interior, amendments: and Budget, Executive Office of the Presi- transmitting, pursuant to law, the report of S. 950: A bill to amend the Clean Air Act to dent, transmitting, pursuant to law, the re- a rule entitled ‘‘Distribution of Fiscal Year address problems concerning methyl tertiary port of a nomination confirmed for the posi- 2002 Indian Reservation Roads Funds’’ butyl ether, and for other purposes. (Rept. tion of Controller, Office of Federal Finan- (RIN1076–AE28) received on December 20, No. 107–131). cial Management, received on December 20, 2001; to the Committee on Indian Affairs. By Mr. JEFFORDS, from the Committee 2001; to the Committee on Governmental Af- EC–4977. A communication from the Assist- on Environment and Public Works, with an fairs. ant Secretary of Indian Affairs, Department amendment in the nature of a substitute:

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00170 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S13943 S. 1206: A bill to reauthorize the Appa- By Mrs. BOXER: ardous waste combustors, chlor-alkali lachian Regional Development Act of 1965, S. 1865. A bill to authorize the Secretary of plants, and Portland cement plants to reduce and for other purposes. (Rept. No. 107–132). the Interior to study the suitability and fea- emissions of mercury to the environment, f sibility of establishing the Lower Los Ange- and for other purposes; to the Committee on les River and San Gabriel River watersheds Environment and Public Works. EXECUTIVE REPORTS OF in the State of California as a unit of the Na- By Mrs. CLINTON (for herself, Mr. COMMITTEES tional Park System, and for other purposes; SMITH of Oregon, Mr. STEVENS, Mr. The following executive reports of to the Committee on Energy and Natural Re- SPECTER, Mrs. BOXER, Mr. FITZ- sources. GERALD, Mr. SCHUMER, and Mr. committees were submitted: By Mrs. LINCOLN: DODD): By Mr. LEVIN for the Committee on S. 1866. A bill to amend title XVIII of the S. 1876. A bill to establish a National Foun- Armed Services. Social Security Act to phase in the fee dation for the Study of Holocaust Assets; to *Joseph E. Schmitz, of Maryland, to be In- schedule for ambulance services to provide the Committee on Banking, Housing, and spector General, Department of Defense. for equitable treatment of suppliers of such Urban Affairs. Army nominations beginning Brigadier services that are required to equip all ambu- By Mr. HARKIN: General Donna F. Barbisch and ending Colo- lances to provide advanced life support serv- S. 1877. A bill to clarify and reaffirm a nel Bruce E. Zukauskas, which nominations ices; to the Committee on Finance. cause of action and Federal court jurisdic- were received by the Senate and appeared in By Mr. LIEBERMAN (for himself and tion for certain claims against the Govern- the Congressional Record on December 5, Mr. MCCAIN): ment of Iran; to the Committee on Foreign 2001. S. 1867. A bill to establish the National Relations. (Nominations without an asterisk Commission on Terrorist Attacks Upon the By Mrs. HUTCHISON (for herself and were reported with the recommenda- United States, and for other purposes; to the Mr. BINGAMAN): tion that they be confirmed.) Committee on Governmental Affairs. S. 1878. A bill to establish programs to ad- (*Nomination was reported with the By Mr. BIDEN: dress the health care needs of residents of the United States-Mexico Border Area, and recommendation that it be confirmed S. 1868. A bill to establish a national center on volunteer and provider screening to re- for other purposes; to the Committee on subject to the nominee’s commitment duce sexual and other abuse of children, the Health, Education, Labor, and Pensions. to respond to requests to appear and elderly, and individuals with disabilities; to By Mr. MURKOWSKI (for himself and testify before any duly constituted the Committee on the Judiciary. Mr. STEVENS): committee on the Senate.) By Mrs. LINCOLN (for herself, Mr. S. 1879. A bill to resolve the claims of Cook Inlet Region, Inc., to lands adjacent to the f BAYH, Mr. DURBIN, Mr. HOLLINGS, and Mr. HUTCHINSON): Russian River in the State of Alaska; to the INTRODUCTION OF BILLS AND S. 1869. A bill to amend the Tariff Act of Committee on Energy and Natural Re- JOINT RESOLUTIONS 1930 to provide for an expedited antidumping sources. By Mr. WELLSTONE: The following bills and joint resolu- investigation when imports increase materi- ally from new suppliers after an antidumping S. 1880. A bill to provide assistance for the tions were introduced, read the first order has been issued, and to amend the pro- relief and reconstruction of Afghanistan, and and second times by unanimous con- vision relating to adjustments to export for other purposes; to the Committee on For- sent, and referred as indicated: price and constructed export price; to the eign Relations. By Mr. DODD (for himself and Mr. MIL- By Mr. DORGAN (for himself and Mr. Committee on Finance. LER): AGEL): By Mr. CORZINE (for himself, Mr. JEF- H S. 1881. A bill to require the Federal Trade S. 1860. A bill to reward the hard work and FORDS, and Mr. LIEBERMAN): Commission to establish a list of consumers risk of individuals who choose to live in and S. 1870. A bill to amend the Clean Air Act who request not to receive telephone sales help preserve America’s small, rural towns, to establish an inventory, registry, and in- calls; to the Committee on Commerce, and for other purposes; to the Committee on formation system of United States green- Science, and Transportation. Finance. house gas emissions to inform the public and By Mr. SMITH of Oregon: By Mr. LUGAR: private sector concerning, and encourage S. 1882. A bill to amend the Small Rec- S. 1861. A bill to authorize the extension of voluntary reductions in, greenhouse emis- lamation Projects Act of 1956, and for other nondiscriminatory treatment (normal trade sions; to the Committee on Environment and purposes; to the Committee on Energy and relations treatment) to the products of Rus- Public Works. Natural Resources. sia; to the Committee on Finance. By Mr. ROCKEFELLER: By Mr. SMITH of Oregon (for himself By Mr. DURBIN: S. 1871. A bill to direct the Secretary of and Mr. WYDEN): S. 1862. A bill to provide for grants to as- Transportation to conduct a rail transpor- S. 1883. A bill to authorize the Bureau of sist States and communities in developing a tation security risk assessment, and for Reclamation to participate in the rehabilita- comprehensive approach to helping children other purposes; to the Committee on Com- tion of the Wallowa Lake Dam in Oregon, 5 and under who have been exposed to domes- merce, Science, and Transportation. and for other purposes; to the Committee on tic violence or a violent act in the home or By Mr. BAYH: Energy and Natural Resources. community; to the Committee on the Judici- S. 1872. A bill to amend the Employee Re- By Mr. WELLSTONE (for himself, Mr. ary. tirement Income Security Act of 1974 to re- DEWINE, Mr. DAYTON, Mr. SPECTER, By Mr. GRAHAM: quire the Pension Benefit Guaranty Corpora- Mr. BAYH, Ms. MIKULSKI, and Mr. S. 1863. A bill to amend the Internal Rev- tion to notify plan participants and bene- VOINOVICH): enue Code of 1986 to clarify treatment for ficiaries of the commencement of pro- S. 1884. A bill to amend the Emergency foreign tax credit limitation purposes of cer- ceedings to terminate such plan; to the Com- Steel Loan Guarantee Act of 1999 to revise tain transfers of intangible property; to the mittee on Health, Education, Labor, and eligibility and other requirements for loan Committee on Finance. Pensions. guarantees under that Act, and for other By Ms. MIKULSKI (for herself, Mr. By Ms. SNOWE: purposes; to the Committee on Appropria- HUTCHINSON, Mr. KERRY, Mr. JEF- S. 1873. A bill to amend the Internal Rev- tions. FORDS, Mr. GREGG, Mr. DASCHLE, Mr. enue Code of 1986 to allow credits for the in- By Mr. DODD: FRIST, Mr. KENNEDY, Ms. COLLINS, stallation of energy efficiency home im- S. 1885. A bill to establish the elderly hous- Mr. LIEBERMAN, Mr. ENZI, Mrs. CLIN- provements, and for other purposes; to the ing plus health support demonstration pro- TON, Mr. WARNER, Mr. JOHNSON, Mr. Committee on Finance. gram to modernize public housing for elderly ROBERTS, Mrs. LINCOLN, Mrs. By Mr. SESSIONS (for himself and Mr. and disabled persons; to the Committee on HUTCHISON, Mrs. MURRAY, Mr. SMITH HATCH): Banking, Housing, and Urban Affairs. of Oregon, Mr. SARBANES, Mr. HAGEL, S. 1874. A bill to reduce the disparity in By Mr. DODD: Mr. TORRICELLI, Mr. COCHRAN, Mr. punishment between crack and powder co- S. 1886. A bill to amend the Internal Rev- DAYTON, Mr. CHAFEE, Mr. GRAHAM, caine offenses, to more broadly focus the enue Code of 1986 to allow a business credit Mr. LUGAR, Ms. CANTWELL, Mr. punishment for drug offenders on the seri- for supported elderly housing; to the Com- HATCH, Mr. LEAHY, Mrs. CARNAHAN, ousness of the offense and the culpability of mittee on Finance. Mr. ROCKEFELLER, Ms. STABENOW, Mr. the offender, and for other purposes; to the By Ms. SNOWE: CORZINE, Mr. SCHUMER, Mr. INOUYE, Committee on the Judiciary. S. 1887. A bill to provide for renewal of Mr. MILLER, Mr. WELLSTONE, Mr. By Mr. LEAHY (for himself and Ms. project-based assisted housing contracts at HARKIN, Mr. SANTORUM, Mr. REED, SNOWE): reimbursement levels that are sufficient to and Mr. BOND): S. 1875. A bill to amend the Clean Air Act sustain operations, and for other purposes; to S. 1864. A bill to amend the Public Health to establish requirements concerning the op- the Committee on Banking, Housing, and Service Act to establish a Nurse Corps and eration of fossil fuel-fired electric utility Urban Affairs. recruitment and retention strategies to ad- steam generating units, commercial and in- By Mr. STEVENS (for himself, Mr. dress the nursing shortage, and for other dustrial boiler units, solid waste inciner- BENNETT, Mr. CAMPBELL, Mr. HATCH, purposes; considered and passed. ation units, medical waste incinerators, haz- and Mr. SPECTER):

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00171 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S13944 CONGRESSIONAL RECORD — SENATE December 20, 2001 S. 1888. A bill to amend title 18 of the sor of S. 162, a bill to amend the Inter- setts (Mr. KERRY) was added as a co- United States Code to correct a technical nal Revenue Code of 1986 to provide a sponsor of S. 762, a bill to amend the error in the codification of title 36 of the business credit against income for the Internal Revenue Code of 1986 to allow United States Code; considered and passed. purchase of fishing safety equipment. a credit against income tax for infor- By Mr. HATCH: S. 1889. A bill to provide for work author- S. 188 mation technology training expenses ization for nonimmigrant spouses of At the request of Ms. SNOWE, her and for other purposes. intracompany transferees, and to reduce the name was added as a cosponsor of S. S. 950 period of time during which certain 188, a bill to amend the Internal Rev- At the request of Ms. SNOWE, her intracompany transferees have to be con- enue Code of 1986 to modify the tax name was added as a cosponsor of S. tinuously employed before applying for ad- credit for electricity produced from 950, a bill to amend the Clean Air Act mission to the United States; to the Com- certain renewable resources. mittee on the Judiciary. to address problems concerning methyl By Mr. HATCH: S. 345 tertiary butyl ether, and for other pur- S. 1890. A bill to provide for work author- At the request of Mr. ALLARD, the poses. ization for nonimmigrant spouses of treaty name of the Senator from Nebraska S. 1082 traders and treaty investors; to the Com- (Mr. HAGEL) was added as a cosponsor At the request of Mr. TORRICELLI, the mittee on the Judiciary. of S. 345, a bill to amend the Animal name of the Senator from Washington By Mr. HATCH: Welfare Act to strike the limitation (Mrs. MURRAY) was added as a cospon- S. 1891. A bill to extend the basic pilot pro- that permits interstate movement of sor of S. 1082, a bill to amend the Inter- gram for employment eligibility live birds, for the purpose of fighting, verification, and for other purposes; to the nal Revenue Code of 1986 to expand the Committee on the Judiciary. to States in which animal fighting is expensing of environmental remedi- By Mr. SPECTER: lawful. ation costs. S.J. Res. 30. A joint resolution proposing S. 530 S. 1125 an amendment to the Constitution of the At the request of Ms. SNOWE, her At the request of Mr. MCCONNELL, United States regarding the appointment of name was added as a cosponsor of S. individuals to serve as Members of the House the names of the Senator from Ne- 530, a bill to amend the Internal Rev- braska (Mr. HAGEL) and the Senator of Representatives in the event a significant enue Code of 1986 to provide a 5-year number of Members are unable to serve at from California (Mrs. BOXER) were any time because of death or incapacity; to extension of the credit for producing added as cosponsors of S. 1125, a bill to the Committee on the Judiciary. electricity from wind. conserve global bear populations by S. 540 f prohibiting the importation, expor- At the request of Mr. DEWINE, the tation, and interstate trade of bear SUBMISSION OF CONCURRENT AND name of the Senator from Washington viscera and items, products, or sub- SENATE RESOLUTIONS (Ms. CANTWELL) was added as a cospon- stances containing, or labeled or adver- The following concurrent resolutions sor of S. 540, a bill to amend the Inter- tised as containing, bear viscera, and and Senate resolutions were read, and nal Revenue Code of 1986 to allow as a for other purposes. deduction in determining adjusted referred (or acted upon), as indicated: S. 1214 gross income the deduction for ex- By Mr. BROWNBACK: At the request of Mr. HOLLINGS, the penses in connection with services as a S. Res. 194. A resolution congratulating the name of the Senator from Texas (Mrs. people and government of Kazakhstan on the member of a reserve component of the HUTCHISON) was added as a cosponsor of tenth anniversary of the independence of the Armed Forces of the United States, to S. 1214, a bill to amend the Merchant Republic of Kazakhstan; considered and allow employers a credit against in- Marine Act, 1936, to establish a pro- agreed to. come tax with respect to employees gram to ensure greater security for By Mr. DASCHLE (for himself and Mr. who participate in the military reserve LOTT): United States seaports, and for other components, and to allow a comparable S. Res. 195. A resolution tendering the purposes. thanks of the Senate to the Vice President credit for participating reserve compo- S. 1329 for the courteous, dignified, and impartial nent self-employed individuals, and for manner in which he has presided over the de- other purposes. At the request of Mr. JEFFORDS, the liberations of the Senate; considered and S. 550 name of the Senator from Arkansas (Mrs. LINCOLN) was added as a cospon- agreed to. At the request of Mr. DASCHLE, the By Mr. DASCHLE (for himself and Mr. name of the Senator from Washington sor of S. 1329, a bill to amend the Inter- LOTT): nal Revenue Code of 1986 to provide a S. Res. 196. A resolution tendering the (Mrs. MURRAY) was added as a cospon- sor of S. 550, a bill to amend part E of tax incentive for land sales for con- thanks of the Senate to the President pro servation purposes. tempore for the courteous, dignified, and im- title IV of the Social Security Act to partial manner in which he has presided over provide equitable access for foster care S. 1346 the deliberations of the Senate; considered and adoption services for Indian chil- At the request of Mr. SESSIONS, the and agreed to. dren in tribal areas. names of the Senator from Louisiana By Mr. LOTT: S. 677 (Ms. LANDRIEU) and the Senator from S. Res. 197. A resolution to commend the At the request of Mr. HATCH, the Arkansas (Mrs. LINCOLN) were added as exemplary leadership of the Majority Lead- name of the Senator from Oregon (Mr. cosponsors of S. 1346, a bill to amend er; considered and agreed to. the Federal Food, Drug, and Cosmetic By Mr. DASCHLE: SMITH) was added as a cosponsor of S. S. Res. 198. A resolution to commend the 677, a bill to amend the Internal Rev- Act with regard to new animal drugs, exemplary leadership of the Republican enue Code of 1986 to repeal the required and for other purposes. Leader; considered and agreed to. use of certain principal repayments on S. 1478 f mortgage subsidy bond financing to re- At the request of Mr. SANTORUM, the deem bonds, to modify the purchase names of the Senator from California ADDITIONAL COSPONSORS price limitation under mortgage sub- (Mrs. BOXER), the Senator from New S. 94 sidy bond rules based on median family York (Mrs. CLINTON), and the Senator At the request of Mr. DORGAN, the income, and for other purposes. from Ohio (Mr. DEWINE) were added as name of the Senator from Illinois (Mr. S. 756 cosponsors of S. 1478, a bill to amend DURBIN) was added as a cosponsor of S. At the request of Ms. SNOWE, her the Animal Welfare Act to improve the 94, a bill to amend the Internal Rev- name was added as a cosponsor of S. treatment of certain animals, and for enue Code of 1986 to provide a 5-year 756, a bill to amend the Internal Rev- other purposes. extension of the credit for electricity enue Code of 1986 to extend and modify S. 1500 produced from wind. the credit for electricity produced from At the request of Mr. KYL, the name S. 162 biomass, and for other purposes. of the Senator from Minnesota (Mr. At the request of Ms. COLLINS, the S. 762 DAYTON) was added as a cosponsor of S. name of the Senator from Washington At the request of Mr. CONRAD, the 1500, a bill to amend the Internal Rev- (Mrs. MURRAY) was added as a cospon- name of the Senator from Massachu- enue Code of 1986 to provide tax and

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00172 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S13945 other incentives to maintain a vibrant COLLINS) and the Senator from Florida Congress passed the Jackson-Vanik travel and tourism industry, to keep (Mr. GRAHAM) were added as cosponsors amendment as a means to deny Perma- working people working, and to stimu- of S. 1767, a bill to amend title 38, nent Normal Trade Relations to com- late economic growth, and for other United States Code, to provide that munist countries that restricted emi- purposes. certain service in the American Field gration rights and were not market S. 1556 Service ambulance corps shall be con- economies. Jackson-Vanik continues At the request of Mr. DOMENICI, his sidered active duty for the purposes of to apply to the Russian Federation name was added as a cosponsor of S. all laws administered by the Secretary today despite the findings of successive 1556, a bill to establish a program to of Veteran’s Affairs, and for other pur- Administrations that Russia had come name national and community service poses. into full compliance with requirements projects in honor of victims killed as a S. 1786 of freedom of emigration, including the result of the terrorist attacks on Sep- At the request of Mr. DURBIN, the absence of any tax on emigration. Fur- tember 11, 2001. names of the Senator from New York thermore, although Russia’s trans- S. 1566 (Mr. SCHUMER), the Senator from Ha- formation has been imperfect, substan- At the request of Ms. SNOWE, her waii (Mr. INOUYE), the Senator from tial progress has been made toward the name was added as a cosponsor of S. Missouri (Mrs. CARNAHAN), and the creation of a free-market economy. 1566, a bill to amend the Internal Rev- Senator from Wisconsin (Mr. KOHL) Since the fall of the Soviet Union, enue Code of 1986 to modify and expand were added as cosponsors of S. 1786, a there have been dramatic changes in the credit for electricity produced from bill to expand aviation capacity in the all aspects of life in Russia. It is clear renewable resources and waste prod- Chicago area. that the Jackson-Vanik amendment ucts, and for other purposes. S. 1819 played a role in bringing about these changes and in promoting freedom of S. 1655 At the request of Mr. BIDEN, the emigration in many countries in the At the request of Ms. MIKULSKI, her name of the Senator from Louisiana former Soviet Union. name was added as a cosponsor of S. (Ms. LANDRIEU) was added as a cospon- sor of S. 1819, a bill to provide that But, the time has come to move be- 1655, a bill to amend title 18, United yond the Cold War era. States Code, to prohibit certain inter- members of the Armed Forces per- forming services in the Republic of Since 1991, Congress has authorized state conduct relating to exotic ani- the removal of Jackson-Vanik restric- mals. Korea shall be entitled to tax benefits in the same manner as if such services tions from Estonia, Latvia, Lithuania, S. 1707 were performed in a combat zone, and the Czech Republic, the Slovak Repub- At the request of Mr. JEFFORDS, the for other purposes. lic, Hungary, Bulgaria, Romania, name of the Senator from Pennsyl- Kyrgyszstan, Albania, and Georgia. Be- S. 1858 vania (Mr. SPECTER) was added as a co- cause Russia continues to be subject to sponsor of S. 1707, a bill to amend title At the request of Mr. ALLEN, the names of the Senator from Oklahoma Jackson-Vanik conditions, the Admin- XVIII of the Social Security Act to istration must submit a semi-annual (Mr. NICKLES), the Senator from Massa- specify the update for payments under report to the Congress on that govern- chusetts (Mr. KENNEDY), the Senator the medicare physician fee schedule for ment’s continued compliance with free- from Virginia (Mr. WARNER), and the 2002 and to direct the Medicare Pay- dom of emigration requirements. The Senator from New York (Mrs. CLINTON) ment Advisory Commission to conduct were added as cosponsors of S. 1858, a Administration reports that this re- a study on replacing the use of the sus- bill to permit the closed circuit tele- quirement continues to be a major irri- tainable growth rate as a factor in de- tant is U.S. relations with Russia. The vising of the criminal trial of Zacarias termining such update in subsequent changed circumstances that have per- Moussaoui for the victims of Sep- years. mitted the removal of other com- tember 11th. S. 1745 munist countries from Title IV report- S. 1859 At the request of Mrs. LINCOLN, the ing now apply equally to Russia. At the request of Mr. SCHUMER, the name of the Senator from New Jersey I understand there remain those with name of the Senator from New York (Mr. CORZINE) was added as a cosponsor concerns about extending nondiscrim- (Mrs. CLINTON) was added as a cospon- of S. 1745, a bill to delay until at least inatory treatment to the products of sor of S. 1859, a bill to extend the dead- January 1, 2003, any changes in med- the Russian Federation. But I would line for granting posthumous citizen- icaid regulations that modify the med- simply point out that the U.S. and Rus- ship to individuals who die while on ac- icaid upper payment limit for non- sia concluded a bilateral trade agree- tive-duty service in the Armed Forces. State Government-owned or operated ment on June 17, 1992 and that Russia S. CON. RES. 3 hospitals. is currently in the process of acceding At the request of Mr. FEINGOLD, the to the World Trade Organization. In S. 1749 name of the Senator from Nebraska At the request of Mr. KYL, the name other words, the time has come to take (Mr. HAGEL) was added as cosponsor of the next step in the U.S.-Russian bilat- of the Senator from Oklahoma (Mr. S. Con. Res. 3, a concurrent resolution INHOFE) was added as a cosponsor of S. eral relationship, namely, Permanent expressing the sense of Congress that a Normal Trade Relations. It is for that 1749, a bill to enhance the border secu- commemorative postage stamp should rity of the United States, and for other purpose that I introduce this legisla- be issued in honor of the USS Wisconsin tion today. purposes. and all those who served aboard her. At the request of Ms. SNOWE, her f By Mr. GRAHAM: name was added as a cosponsor of S. S. 1863. A bill to amend the Internal 1749, supra. STATEMENTS ON INTRODUCED Revenue Code of 1986 to clarify treat- S. 1766 BILLS AND JOINT RESOLUTIONS ment for foreign tax credit limitation At the request of Mr. BINGAMAN, the By Mr. LUGAR: purposes of certain transfers of intan- names of the Senator from Hawaii (Mr. S. 1861. A bill to authorize the exten- gible property; to the Committee on AKAKA), the Senator from North Da- sion of nondiscriminatory treatment Finance. kota (Mr. DORGAN), the Senator from (normal trade relations treatment) to Mr. GRAHAM. Mr. President, today I South Carolina (Mr. HOLLINGS), the the products of Russia; to the Com- am introducing legislation that will Senator from South Dakota (Mr. JOHN- mittee on Finance. clarify the proper tax treatment of in- SON), and the Senator from Massachu- Mr. LUGAR. Mr. President, at the re- tangible assets transferred to foreign setts (Mr. KERRY) were added as co- quest of the Administration, I rise corporations. This bill is necessary to sponsors of S. 1766, a bill to provide for today to offer legislation to repeal the avoid trapping unwary taxpayers who the energy security of the Nation, and Jackson-Vanik amendment to Title IV relied on Congressional intent when it for other purposes. of the 1974 Trade Act and to authorize made changes to this area of the tax S. 1767 the extension of normal trade relations code in 1997. At the request of Mr. KENNEDY, the to the products of the Russian Federa- Transfers of intangible property from names of the Senator from Maine (Ms. tion. a U.S. person to a foreign corporation

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00173 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S13946 CONGRESSIONAL RECORD — SENATE December 20, 2001 in a transaction that would be tax-free poses in the same manner as an actual By Ms. MIKULSKI (for herself, under Code section 351 or 361 are sub- royalty, there is a risk in many cases Mr. HUTCHINSON, Mr. KERRY, ject to special rules. Pursuant to sec- that such deemed royalties would be Mr. JEFFORDS, Mr. GREGG, Mr. tion 367(d), the U.S. person making characterized in a manner that leads to DASCHLE, Mr. FRIST, Mr. KEN- such a transfer is treated as 1. having a foreign tax credit result that is NEDY, Ms. COLLINS, Mr. LIEBER- sold the intangible property in ex- equally as disadvantageous as the re- MAN, Mr. ENZI, Mrs. CLINTON, change for payments that are contin- sult that arose under the penalty Mr. WARNER, Mr. JOHNSON, Mr. gent on the productivity, use, or dis- source rule that was intended to be ROBERTS, Mrs. LINCOLN, Mrs. position of such property and 2. receiv- eliminated by the 1997 Act. The bill I HUTCHISON, Mrs. MURRAY, Mr. ing amounts that reasonably reflect am introducing today provides the SMITH of Oregon, Mr. SARBANES, the amounts that would have been re- needed clarification of the foreign tax Mr. HAGEL, Mr. TORRICELLI, Mr. ceived annually over the useful life of credit limitation treatment of a COCHRAN, Mr. DAYTON, Mr. such property. The deemed royalty deemed royalty under section 367(d), CHAFEE, Mr. GRAHAM, Mr. amounts included in the gross income ensuring that the penalty that was in- LUGAR, Ms. CANTWELL, Mr. of the U.S. person by reason of this tended to be eliminated with the 1997 HATCH, Mr. LEAHY, Mrs. CARNA- rule are treated as ordinary income Act is in fact eliminated. HAN, Mr. ROCKEFELLER, Ms. and the earnings and profits of the for- The bill clarifies that the deemed in- STABENOW, Mr. CORZINE, Mr. eign corporation to which the intan- come inclusions under section 367(d) SCHUMER, Mr. INOUYE, Mr. MIL- gible property was distributed are re- upon a transfer of intangible property LER, MR. WELLSTONE, Mr. HAR- duced by such amounts. to a foreign corporation are character- KIN, Mr. SANTORUM, Mr. REED, Prior to the Taxpayer Relief Act of ized for purposes of the foreign tax and Mr. BOND): 1997 (the ‘‘1997 Act’’), the deemed royal- credit limitation rules in the same S. 1864. A bill to amend the Public ties under section 367(d) were treated manner as an actual royalty is charac- Health Service Act to establish a Nurse as U.S.-source income and therefore terized. The tax treatment of such a Corps and recruitment and retention were not eligible for foreign tax cred- transfer of intangible property to a for- strategies to address the nursing short- its. The 1997 Act eliminated this spe- eign corporation thus would be the age, and for other purposes; considered cial ‘‘deemed U.S. source rule’’ and pro- same as the tax treatment that applies and passed. vided that deemed royalties under sec- if the intangible property is made Ms. MIKULSKI. Mr. President, I rise tion 367(d) are treated as foreign-source available to the foreign corporation to introduce the Nurse Reinvestment income to the same extent that an ac- through a license arrangement. Act. This bill is a down payment to tual royalty payment would be so The bill’s provision would be effec- help address the nursing shortage in treated. The 1997 Act reflected a rec- tive for income inclusions under sec- this country by bringing more people ognition that the previous rule was in- tion 367(d) on or after August 5, 1997, into the nursing profession and by re- tended to discourage transfers of intan- which is the effective date of the 1997 taining nurses. This bill combines the gible property to foreign corporations, Act provision eliminating the special Nursing Employment and Education relative to licenses of such intangible deemed U.S. source rule under section Development Act, S. 721, introduced by property, but that the enhanced infor- 367(d). Like the 1997 Act provision, the Senator TIM HUTCHINSON and myself mation reporting included in the 1997 bill’s provision would be effective for and the Nurse Reinvestment Act, (S. Act made it unnecessary to continue to transfers made, and for royalties 1597), introduced by Senators KERRY so discourage transfers relative to li- deemed received, on or after August 5, and JEFFORDS. We have all worked to- censes. 1997. gether to bring this important legisla- The 1997 Act intended to eliminate I ask unanimous consent that the the penalty provided by the prior-law tion before the Senate today. text of the bill be printed in the This bill is sorely needed, because we deemed U.S. source rule under section RECORD. 367(d) and that had operated to discour- have a nursing shortage. In Maryland, There being no objection, the bill was 15 percent of the nursing jobs are va- age taxpayers from transferring intan- ordered to be printed in the RECORD, as gible property in a transaction that cant. Last year, it took an average of follows: 68 days to fill a nurse vacancy, and we would be covered by section 367(d). S. 1863 Prior to the 1997 Act, in order to avoid need about 1,600 more full-time nurses Be it enacted by the Senate and House of Rep- this penalty, taxpayers licensed intan- to fill those vacancies. There were 2,000 resentatives of the United States of America in fewer nurses in Maryland in 1999 than gible property to foreign corporations Congress assembled, instead of transferring such property in there were in 1998. The shortage exists SECTION 1. CLARIFICATION OF TREATMENT OF across the United States, and will get a transaction that would be subject to CERTAIN TRANSFERS OF INTAN- section 367(d). With the 1997 Act’s GIBLE PROPERTY. worse in the future. Nationwide, we elimination of the penalty source rule (a) IN GENERAL.—Subparagraph (C) of sec- need 1.7 million nurses by the year of section 367(d), it was intended that tion 367(d)(2) of the Internal Revenue Code of 2020, but only about 600,000 will be taxpayers could transfer intangible 1986 (relating to transfer of intangibles treat- available. The need for this bill was ed as transfer pursuant to sale of contingent clear at the Subcommittee on Aging’s property to a foreign corporation in a payments) is amended by adding at the end transaction that gives rise to deemed hearing on the nursing shortgage ear- the following new sentence: ‘‘For purposes of lier this year. royalty payments under section 367(d) applying the various categories of income instead of having to structure the described in section 904(d)(1), any such We depend on nurses every day to transaction with the foreign corpora- amount shall be treated in the same manner care for millions of Americans, wheth- tion as a license in exchange for actual as if such amount were a royalty.’’. er in a hospital, nursing home, commu- royalty payments. (b) EFFECTIVE DATE; WAIVER OF LIMITA- nity health center, hospice, or through The 1997 Act’s goal of eliminating the TIONS.— home health. They are the backbone of penalty treatment of transfers of in- (1) EFFECTIVE DATE.—The amendment our health care system. If we don’t ef- made by this section shall take effect as if fectively address the crisis in nursing, tangible property under section 367(d) included in the amendments made by section is achieved only if the deemed royalty 1131(b) of the Taxpayer Relief Act of 1997. those hospitals, nursing homes and payments under section 367(d) not only (2) WAIVER OF LIMITATIONS.—If refund or clinics will soon be on life support. are sourced for foreign tax credit pur- credit of any overpayment of tax resulting This bill is a down payment. It poses in the same manner as actual from the application of the amendment made doesn’t address the fact that nurses are royalty payments, but also are charac- by this section is prevented at any time be- underpaid, overworked, and under- terized for foreign tax credit limitation fore the close of the 1-year period beginning valued, but it does focus on education purposes in the same manner as actual on the date of the enactment of this Act by and other important areas. This bill the operation of any law or rule of law (in- royalty payments. Without a clarifica- cluding res judicata), such refund or credit seeks to help bring men and women tion that the deemed royalty payments may nevertheless be made or allowed if into the nursing profession, and help under section 367(d) are characterized claimed therefor is filed before the close of them to advance within it. The bill for foreign tax credit limitation pur- such period. does this under five major approaches:

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00174 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S13947 Creates a National Nurse Service It will help her get loans or scholar- Hospitals, nursing homes, commu- Corps Scholarship Program, which pro- ships and living stipends to pursue that nity health centers and other health vides scholarships in exchange for at degree. care facilities are desperately seeking least two years of service in a critical This bill will also fund partnerships nurses to fill vacant positions so they nursing shortage area or facility between schools of nursing and health can continue to provide safe, quality Provides grants for outreach at pri- care facilities to train individuals who health care. In Arkansas, hospitals mary and secondary schools; scholar- will provide long-term care for the el- have reported over 750 nursing vacan- ships or stipends to nursing students derly. Our population is aging, more cies. To encourage nurses to stay and from disadvantaged backgrounds, edu- than 70 million Americans will be over advance within the profession, the cation programs for students who need age 65 by 2030. This means more people nursing bill provides for a career ladder assistance with math, science, or other will need care provided by nurses and program and encourages hospitals and areas; dependent care and transpor- other individuals specifically trained other employers to develop innovative tation assistance; establishment of to care for the unique health needs of retention strategies. The bill also en- partnerships between schools of nurs- older Americans. courages speciality training and men- I look forward to the Senate’s speedy ing and health care facilities to im- tors through an internship and resi- passage of this important legislation prove access to care in underserved dency program, in order to fill the void and to working with our colleagues in areas created by experienced nurses leaving the House of Representatives to enact Creates state and national public the profession. a strong bill that gets behind our Na- awareness and education campaigns to Finally, the bill addresses the crit- tion’s nurses. I also want to thank Sen- enhance the image of nursing, promote ical need for nurse educators. The num- ators KENNEDY, GREGG, and FRIST for diversity in the nursing workforce, and ber of nursing school graduates in Ar- their hard work in moving this legisla- encourage people to enter the nursing kansas is at its lowest in a decade, and tion forward, as well as Senators LIE- profession nursing students have been turned BERMAN and CLINTON for their impor- Creates ‘‘career ladder’’ programs away because of the lack of faculty to tant contributions to this bill. with schools of nursing and health care Mr. HUTCHINSON. Mr. President, I teach them. There are approximately facilities to encourage individuals to am proud to be a lead cosponsor of the four hundred nurse faculty vacancies in pursue additional education and train- legislation we are introducing today to nursing schools nationwide. Therefore ing to enter and advance within the address the critical shortage of nurses we include two provisions, a nurse fac- nursing profession in our country. After holding two hear- ulty fast-track loan repayment pro- Enables Area Health Education Cen- ings earlier this year to examine the gram and a stipend and scholarship ters, AHECs, to expand their junior and nurse shortage and its impact on our program, both of which provide finan- senior high school mentoring programs health care delivery system. I intro- cial assistance to masters and doctoral for nurses and develop ‘‘models of ex- duced S. 721, the Nurse Employment students who will teach at an accred- cellence’’ for community-based nurses and Education Development Act, ited school of nursing for each year of Trains individuals to provide long- NEED Act. This bipartisan legislation assistance. term care to the elderly and expands seeks to encourage individuals to enter This has been a team effort. I want to educational opportunities in geronto- the nursing profession, provide contin- thank Senators MIKULSKI, KERRY, and logical nursing ued education and opportunities for ad- JEFFORDS for their contributions to Creates internship and residency pro- vancement within the profession, and this important legislation, and I urge grams that encourage mentoring and to bolster the number of nurse faculty my colleagues to support its passage. the development of specialties to teach at our nursing schools. Most Mr. KERRY. Mr. President, I am Provides grants to improve work- importantly, its legislation would es- pleased to join my colleagues Senators place conditions, reduce workplace in- tablish a Nurse Service Corps, which JEFFORDS, HUTCHINSON and MIKULSKI in juries, promote continuing nursing would provide financial assistance to re-introducing the Nurse Reinvestment education and career development, and individuals for nurse education in ex- Act. This legislation will increase the establish nurse retention programs change for 2 years of service in a nurse number of nurses in our country, and Provides scholarships, loans, and sti- shortage area. also ensure that every nurse in the pends for graduate-level education in The NEED Act won unanimous ap- field has the skills he or she needs to nursing in exchange for teaching at an proval by the Senate Health, Edu- provide the quality care patients de- accredited school of nursing, to help cation, Labor and Pensions Committee serve. ensure that we have enough teachers at on November 1, and I am pleased that We are in the midst of a serious nurs- our nursing schools. it has served as the basis for the legis- ing workforce shortage. Every type of Creates a National Commission on lation we are introducing today. community, urban, suburban and rural, the Recruitment and Retention of The nursing profession is suffering is touched by it. No sector of our Nurses to study and make rec- from a serious decline in practicing health care system is immune to it. ommendations to the health care com- nurses due to a shrinking pipeline. The Across the country, hospitals, nursing munity and Congress on how to ad- nursing profession as a whole is aging, homes, home health care agencies and dress: the nursing shortage in the long- the average age of Registered Nurses is hospices are struggling to find nurses term, nursing recruitment and reten- 43.3 years, while nurses under age 30 to care for their patients. Patients in tion, career advancement within the comprise less than 10 percent of today’s search of care have been denied admis- profession and attracting individuals nurse workforce. Large numbers of sion to facilities and told that there into the profession. nurses are retiring or leaving the pro- were ‘‘no beds’’ for them. Often there This bill is about nursing education, fession, and only a small number of are beds, just not the nurses to care for but it’s also about empowerment. We nurses and nurse educators are taking the patients who would occupy them. can empower people to have a better their place. By the year 2020, when mil- Our Naiton has suffered from nursing life and go into a career to save lives. lions of Baby Boomers will retire, it is shortages in the past. However, this The bill will empower the single projected that nursing needs will be shortage is particularly severe because mom who has been working in a min- unmet by at least 20 percent. For this we are losing nurses at both ends of the imum wage job to forge a better life for reason, we need to employ innovative pipeline. Over the past five years, en- herself and her family. It will help her recruitment techniques, including a rollment in entry-level nursing pro- get a scholarship to help pay for tui- Nurse Service Corps, public service an- grams has declined by 20 percent. tion, books, and lab fees, and by fund- nouncements, and outreach efforts at Lured to the lucartive jobs of the new ing child care programs to help her bal- elementary and secondary schools to economy, high school graduates are ance work and family. promote nursing as a viable, fulfilling not pursuing careers in nursing in the The bill will empower the nurse who career option. To address the needs of numbers they once had. Consequently, has a baccalaureate degree, but wants the elderly, the bill will provide grants nurses under the age of 30 represent to get a Master’s degree so she can for gerontological education and train- only 10 percent of the current work- teach nursing at a community college. ing. force. By 2010, 40 percent of the nursing

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00175 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S13948 CONGRESSIONAL RECORD — SENATE December 20, 2001 workforce will be over the age of 50, nurusing home. Grants will also sup- leges are producing 31 percent fewer and nearing retirement. If these trends port the use of distance learning tech- nurses today than they did just five are not reversed, we stand to lose vast nology to extend education and train- years ago. numbers of nurses at the same time ing to rural areas, and specialty edu- We have a compelling need to encour- that they will be needed to care for the cation and training to all areas. age more Americans to enter the nurs- millions of baby boomers enrolling in The Nurse Reinvestment Act will au- ing profession and to strengthen it so Medicare. thorize, for the first time in history, a that more nurses choose to stay in the The Nurse Reinvestment Act will National Nurse Service Corps. Separate profession. All facets of the health care support the recruitment of new stu- from, though modeled after, the Na- system will have a role to play in en- dents into our Nation’s nursing pro- tional Health Service Corps, the NNSC suring a strong nursing workforce. grams. The bill will fund national and will administer scholarships to stu- Nurses, physicians, hospitals, nursing local public service announcements to dents who commit to working in a homes, academia, community organi- enhance the profile of the nursing pro- health care facility that is experi- zations and state and federal govern- fession and encourage students to com- encing a shortage of nurses. In urban, ments all must accept responsibility mit to a career in nursing. Our legisla- suburban and rural communities across and work towards a solution. Part of tion will also expand school-to-career the country, where facilities turn away the responsibility to launch that effort partnerships between health care fa- patients due to staff shortages, the begins with us today as we make a de- cilities, nursing colleges, middle NNSC will send qualified nurses to cision on the vote for the Nurse Rein- schools and high schools to show our serve and provide the care that pa- vestment Act. youth the value of a nursing degree. tients deserve. The Nurse Reinvestment Act expands Our legislation will ensure that bar- Our country boasts the best health and improves the federal government’s riers to higher education do not dis- care system in the world. But, that support of ‘‘pipeline’’ programs, which suade Americans who are interested in health care system is being jeopardized will maintain a strong talent pool and nursing from pursuing a degree in the by the shortage plaguing our nursing develop a nursing workforce that can field. The Nurse Reinvestment Act will workforce. Indeed, state-of-the-art address the increasingly diverse needs support education for students who medical facilities are of no use if their of America’s population. The Nurse Re- need help getting-up to speed on math, beds go unfilled and their floors remain investment Act provides for a com- science and medical English. Our legis- empty because the nurses needed to prehensive public awareness and edu- lation will also ensure that there is staff them are not available. The Nurse cation campaign on a national, state support for single moms and dads with Reinvestment Act not only seeks to in- and local level that will bolster the children who need a hand in daycare or crease the numbers of new nurses in image of the profession, encourage di- a lift in getting to their classroom be- our country, but also ensures that all versity, attract more nurses to the cause they are without transportation. nurses have the skills they need to pro- workforce, and lead current nurses to Still, is it not enough to simply en- vide the high quality care that makes take advantage of career development courage more individuals to enter the our health care system the best in the opportunities. nursing profession, we must also en- world. The legislation creates a National sure that our schools of nursing have Mr. JEFFORDS. Mr. President, I am Nursing Service Corps Scholarship Pro- enough professors to teach them. The especially pleased that the Senate is gram authorized at $40 million that Nurse Reinvestment Act provides for a scheduled to consider and vote on the will provide scholarships to individuals fast-track facility development pro- Nurse Reinvestment Act. When we pass to attend nursing schools in exchange gram, which encourages master’s and this measure, it will represent a good for a commitment to serve two years in doctoral students to rapidly complete day for the future of nursing in Amer- a health facility determined to have a their studies through loans and schol- ica and a good day for the future for critical shortage of nurses. This schol- arships. Individuals receiving financial patient-care. I want to take this oppor- arship program is designed to greatly assistance through the fast-track fac- tunity to tell our colleagues a little help the recruitment of nursing stu- ulty program must agree to teach at an about this legislation and to congratu- dents by providing them tuition, other ascredited school of nursing in ex- late and complement my fellow Sen- reasonable and necessary educational change for this assistance. ators who worked so hard to see this fees and a monthly stipend paid to the In addition to recruiting new nurses, effort through. My good friend from student. our legislation will reinvest in nurses Massachusetts, Senator KERRY, was The Act also authorizes the ‘‘Nurse who are already practicing by pro- the original sponsor of the Nurse Rein- Recruitment Grant Program’’ to sup- viding them with education and train- vestment Act and with me crafted an port outreach efforts by nursing ing at every step of the career ladder innovative set of solutions to the nurs- schools and other eligible healthcare and at every health care facility in ing shortage problem. Since then, this facilities to inform students in pri- which they work. It will ensure that bill has been strengthened signifi- mary, junior and secondary schools of nurses can obtain advanced degrees, cantly by the inclusion of a com- nursing educational opportunities and from a B.S. in Nursing to a PhD in plimentary measure authored by my to attract them to the nursing profes- Nursing. It will enable nurses to access colleagues on the HELP Committee, sion. The grant program provides ap- the specialty training they require to Senator HUTCHINSON and Senator MI- propriate student support services to learn how to treat a specific disease or KULSKI. The measure we are consid- individuals from disadvantaged back- utilize a new piece of technology. Our ering today has been benefited by this grounds and creates community-based bill will also help colleges and univer- collaboration. partnerships to recruit nurses in medi- sities develop curriculum in geron- As I have stated before, we are facing cally underserved rural and urban tology and long-term care so that nurs- a looming crisis in this country. The areas. Further, the ‘‘Area Health Edu- ing students can pursue concentra- size of our nursing workforce remains cation Centers Program’’ will award tions, minors and majors in this grow- stagnant, while the average age of the grants to nursing schools that work in ing field of health care and be ready to American nurse is on the rise. Over the partnership in the community to de- apply their knowledge to the current past five years, enrollment in entry- velop models of excellence. and future senior population. level nursing programs has declined by The ‘‘Career Ladder Programs’’ will To assist institutions in providing 20 percent. Nurses under the age of 30 assist schools of nursing, health care advanced education and training for represent only 10 percent of the current facilities or partnerships of the two to nurses across the career ladder, our bill workforce. By 2010, 40 percent of the develop programs that will encourage will strengthen the partnerships be- nursing workforce will be over the age current nursing students in active tween colleges of nursing and health of 50, and nearing retirement. In nurses alike, to pursue further edu- care facilities. Grants will be available Vermont we are facing an even greater cation and training. This will be to support such initiatives as the crisis because these numbers are worse. achieved through scholarships, sti- teaching of a course in gerontology in Only 28 percent of nurses are under the pends, career counseling, direct train- the conference rooms of a hospital or age of 40 and Vermont schools and col- ing and distance learning programs.

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00176 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S13949 And, in light of our aging baby-boomer people entering and staying in the Even if nursing schools could recruit generation, specific grants are offered nursing profession, but we are losing more students to deal with the short- to schools and health care facilities so experienced nurses at a time of grow- age, many schools could not accommo- that they might place a further empha- ing need. Today, nurses are needed in a date higher enrollments because of fac- sis upon encouraging students to study greater number of settings, such as ulty shortages. There are nearly four long-term care for the elderly. nursing homes, extended care facili- hundred faculty vacancies at nursing In addition to the provisions that ties, community and public health cen- schools in this country. And, an even were included in the original bill I co- ters, professional education, and ambu- greater faculty shortage looms in the sponsored with my colleague Senator latory care facilities. Nationwide, next ten to fifteen years as many cur- KERRY, there are provisions added by health care providers, ranging from rent nursing faculty approach retire- our colleagues which, I am happy to hospitals and nursing homes to home ment and fewer nursing students pur- have included in this final piece of leg- health agencies and public health de- sue academic careers. Therefore, I islation. Those provisions will provide partments, are struggling to find quali- strongly support the two provisions to for the development of internship and fied nurses to provide safe, efficient, assist with faculty development and residency programs to encourage the quality care for their patients. That’s training, the fast track nursing faculty development of specialties and student, why it is important to have a new loan program and the stipend and loan, stipend and scholarship programs Nursing Corps, which will provide scholarship program. for those who would like to seek a mas- scholarships to qualified individuals in In addressing these direct care staff- ters or doctorate degree at a school of exchange for direct care service in a ing shortages, we must work together nursing. The final bill was also variety of settings as well as to allow to develop innovative solutions to ad- strengthened by provisions added others to know about the numerous dress this growing issue. As reported in through the efforts of Senator LIEBER- possibilities within the profession by the Memphis Commercial Appeal on MAN and Senator CLINTON. authorizing public service announce- May 10, there are steps that Congress Once again, I want to applaud my ments. can take to increase funding for spe- colleagues Senator KERRY, Senator MI- Though we have faced nursing short- cific programs and reduce regulatory KULSKI and Senator HUTCHINSON for ages in the past, this looming shortage requirements. However, a comprehen- their tireless work on the Nurse Rein- is particularly troublesome because it vestment Act and for the work of their sive strategy must also include other reflects two trends that are occurring sectors of the health care system, hos- staffs. In particular, I want to recog- simultaneously: 1. A shortage of people nize the efforts of Kelly Bovio in Sen- pitals, health care professionals, edu- entering the profession; and 2. The re- cators, and the general public, to suc- ator KERRY,’s office, Kate Hull in Sen- tirement of nurses who have been cessfully deal with this looming short- ator HUTCHINSON’s office and Rhonda working in the profession for many age. That’s why it is important to also Richards with Senator MIKULSKI. This years. Over the past five years, enroll- include a provision to deal with devel- effort was also advanced with the help ment in entry-level nursing programs of Sarah Bianchi and Jackie Gran who oping retention strategies and best has declined by twenty percent, mir- practices in nursing staff management. are members of Senator KENNEDY’s roring the declining awareness of the staff, Steve Irizarry with Senator I am extremely supportive of this nursing profession among high school legislation, and I want to thank Sen- GREGG and Shana Christrup with Sen- graduates. Consequently, nurses under ator HUTCHINSON again for his hard ator FRIST. Finally, in my own office, I the age of thirty represent only ten want to note the efforts of Philo Hall, work in addressing this critical issue. I percent of the current workforce. By also want to commend my other col- Angela Mattie, Eric Silva and Sean 2010, forty percent of the nursing work- Donohue. leagues, including Senator MIKULSKI, force will be older than fifty years old Adequate health care services cannot for her efforts. Senator HUTCHINSON and nearing retirement. If these trends survive any further diminishing of the clearly has shown tremendous leader- nursing workforce. All patients depend continue, we stand to lost vast num- ship in this area. He understands the on the professional care of nurses, and bers of nurses at the very time that need to address the nursing shortage we must make sure it will be there for they will be needed to care for the mil- issue, and he is largely responsible for them. I urged my colleagues to join me lions of baby boomers reaching retire- getting us to this point today. and the bill’s cosponsors in support of ment age. To deal with the increased Mr. KENNEDY. Mr. President, it is a this measure. need for nurses to care for the elderly, privilege to join my colleagues in in- Mr. FRIST. Mr. President, I rise this bill has a provision to assist with troducing the Nurse Reinvestment Act. today to discuss the introduction of a both the necessary training and edu- Our goal in this bipartisan legislation very important bill to address the cational development of gerontological is to do as much as we can to alleviate nursing workforce shortage. At the be- nurses as well as to strengthen the the nursing shortage experienced by ginning of November, we reported two ability of nurses to obtain additional health care facilities across the United different bills from the Senate HELP training and certification through the States. Increasing the number of Committee designed to address the career ladders program. nurses is an essential part of the ongo- nursing shortage in this country, the Further, greater efforts must be ing effort to reduce medical errors, im- Hutchinson-Mikulski ‘‘Nursing Em- made to recruit more men and minori- prove patient outcomes, and encourage ployment and Education Development ties to this noble profession. Currently, more Americans to become and remain Act’’ and the Kerry-Jeffords ‘‘Nursing only ten percent of the registered nurses. Reinvestment Act.’’ I was an original nurses in the United States are from The Nation’s nurses provide care for cosponsor of the Hutchinson legislation racial or ethnic minority backgrounds, Americans at the most vulnerable and a strong supporter of that bill. At even though these individuals comprise times in the lives. We must act now to that time, I voiced my concern that we twenty-eight percent of the total halt the decline in the number of are marking up two rather similar pro- United States population. In 2000, less nurses. Enrollment in schools of nurs- posals to deal with the nursing short- than six percent of the registered ing is falling, and the average age of age, and I requested that the dif- nurses were men. We must work to pro- the nursing workforce is rising. Across ferences be worked out before the bill mote diversity in the workforce, not the country, communities are losing was discussed on the Senate floor. I am only to increase the number of individ- vast numbers of nurses, just as we need happy today to report the the final rec- uals within the profession, but also to more to care for the millions of aging onciliation is complete, and we have a promote culturally competent and rel- baby boomers and deal with the many consensus bill that firmly addresses evant care. Within the combined nurs- medical challenges facing our hos- the nursing workforce shortage issue. I ing shortage bill, one grant program di- pitals. thank Senator HUTCHINSON for his hard rectly addresses the need to increase The current shortage means that too work in ensuring that we could reach funding for the training of minority many nurses now have to care for too this point. and disadvantaged students to make it many patients at once, undermining We are in the midst of a direct care easier for individuals to enter the nurs- the high quality of care that nurses workforce shortage. Not only are fewer ing profession. want to give, and patients deserve. A

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00177 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S13950 CONGRESSIONAL RECORD — SENATE December 20, 2001 recent survey by the American Nurses country, including Connecticut, and I Today, we begin what will be a long, Association showed that 75 percent of fear it will jeopardize our ability to slow process in turning the tide for nurses believe that the quality of nurs- provide quality health care to patients. these two urban waterways. This bill ing care at their facility has declined. A recent report by the Government Ac- directs the Secretary of Interior to More than half of those surveyed said counting Office projected that the conduct a study of the suitability and that the time they can spend with pa- growing national nursing shortage will feasibility of protecting and restoring tients has decreased. A nurse in Massa- hit a peak in ten years. these two rivers by making them a chusetts said that she would not go the While pay is a major factor cited in part of our national park system. The hospital where she worked, if she need- the report, it is not the primary reason long term vision I have is to see these ed care. nurses are leaving the profession. The rivers restored to a more natural state Nationally, the shortfall is expected study also cites poor or unsafe working so that they can be a home to southern to rise to 20 percent in the coming conditions, lack of respect from physi- California’s unique fish and wildlife. years. Yet nurses themselves are al- cians and patients, barriers to partici- Just as important to me is that these ready seriously questioning the quality pation in the hospital administration rivers be restored so they can serve as of bedside treatments now being pro- decision-making process, lack of oppor- a source of outdoor recreation for one vided on intensive care units, in emer- tunity to continue their education, and of our Nation’s most congested urban gency rooms, and at the bedsides of pa- lack of recognition for accomplish- areas. Most communities in Los Ange- tients where they work. ments. We must do more to attract les are desperate for open space. They Their questions are call for help. This new people to the nursing profession seek outdoor areas where children can legislation can be significant in and retain the quality nurses who cur- play, adults can meet, and people of all strengthening the nursing profession, rently provide us care. The Nurse Rein- ages can find respite from the daily and responding to the urgent need. vestment Act will do just that. hustle and bustle of some of our most I want to take just a minute to talk The Nurse Reinvestment Act will re- economically and socially stressed about the specific provisions that were cruit new students into schools of nurs- neighborhoods. part of the ‘‘Hospital Based Nursing ing through outreach programs, public What I am proposing would be an un- awareness and education campaigns, Initiative Act.’’ This legislation con- tained two proposals to help retain precedented urban restoration effort. and area health education centers. It But that does not mean it is impos- establishes a national nurse service nurses in the hospital setting: a com- petitive grant program that would pro- sible. Far from it. This vision is shared corps, which will offer scholarships to by Congresswoman HILDA SOLIS, who bring individuals into the profession vide funding to hospitals that actively work to retain their nurses and a first introduced this bill in the House and place them in medically under- of Representatives. I look forward to served areas and facilities. The Act ex- scholarship program for registered nurses who hold an associates or di- working hand in hand with her to en- pands school-to-career partnerships to sure that this dream becomes a reality. show youths the high value and impor- ploma degree who wish to obtain a bachelor’s degree in nursing. I ask unanimous consent that the tance of a nursing degree. It invests in text of the bill be printed in the today’s nurses by providing education As part of the Nurse Reinvestment RECORD. and training at every step of the career Act, these incentives have been broad- ened to apply to the nursing workforce There being no objection, the bill was ladder, and by helping them obtain ad- in all health care facilities, providing a ordered to be printed in the RECORD, as vanced degrees, from a B.S. in Nursing critical stimulus for these facilities to follows: to a Ph.D. in Nursing. It includes pro- retain their nurses. S. 1865 visions developed by Senator LIEBER- While the ominous projections about MAN and Senator CLINTON to help Be it enacted by the Senate and House of Rep- the growing nursing shortage looms resentatives of the United States of America in health care facilities retain nurses. over the health care industry, it is Our country has the best health care Congress assembled, clear that now is the time to act. I am system in the world. But that system is SECTION 1. SHORT TITLE. encouraged that Congress is acting being jeopardized today by the short- This Act may be cited as the ‘‘Lower Los quickly and decisively to actively add Angeles River and San Gabriel River Water- ages plaguing the nursing workforce. to the nurse workforce and to provide Even our best medical facilities are in sheds Study Act of 2001’’. critical incentives to keep nurses on SEC. 2. DEFINITIONS. deep trouble if their beds go unfilled the job. and their floors remain empty because In this Act: there are no nurses to staff them. By Mrs. BOXER: (1) SECRETARY.—The term ‘‘Secretary’’ means the Secretary of the Interior. I commend Senator MIKULSKI, Sen- S. 1865. A bill to authorize the Sec- (2) WATERSHED.—The term ‘‘watershed’’ ator KERRY, Senator HUTCHINSON, and retary of the Interior to study the suit- means— Senator JEFFORDS for their leadership ability and feasibility of establishing (A) the Lower Los Angeles River and its in this initiative. Bringing more nurses the Lower Los Angeles River and San tributaries below the confluence of the Ar- into the profession will help to ensure Gabriel River watersheds in the State royo Seco; that nurses are ready and able to pro- of California as a unit of the National (B) the San Gabriel River and its tribu- vide the highest quality of care to their Park System, and for other purposes; taries in Los Angeles County and Orange patients. The Nurse Reinvestment Act to the Committee on Energy and Nat- County, California; and is a significant step that Congress can ural Resources. (C) the San Gabriel Mountains located Mrs. BOXER. Mr. President, I am within the territory of the San Gabriel and take to support the Nation’s nurses, Lower Los Angeles Rivers and Mountains and I urge my colleagues to support it. pleased to be introducing today a bill Conservancy (as defined in section Mr. LIEBERMAN. Mr. President, I that will take an important first step 32603(c)(1)(C) of the State of California Pub- am proud to be an original cosponsor of in restoring the San Gabriel River and lic Resource Code). the Nurse Reinvestment Act of 2001. I Lower LA River, which run through SEC. 3. AUTHORIZATION OF STUDY. want to congratulate my colleagues, Los Angeles, CA. These two rivers have (a) IN GENERAL.—The Secretary shall carry particularly Senators MIKULSKI, suffered from years of abuse and ne- out a study on the suitability and feasibility HUTCHINSON, KERRY and JEFFORDS, for glect. For far too long, we have chan- of establishing the watershed as a unit of the their extraordinary efforts to put to- neled, redirected, constricted, polluted, National Park System. gether this excellent bill. I also want and simply ignored these two rivers. (b) APPLICABLE LAW.—Section 8(c) of Pub- to thank the Committee for including The result is that substantial portions lic Law 91–383 (16 U.S.C. 1a–5(c)) shall apply the provisions of the LIEBERMAN-EN- of these rivers look nothing like their to the conduct and completion of the study required by subsection (a). SIGN ‘‘Hospital Based Nursing Initia- natural form. Instead of soft bottoms (c) CONSULTATION WITH STATE AND LOCAL tive Act of 2001’’ in the bill. covered with aquatic grasses, stream GOVERNMENTS.—In carrying out the study By now, everyone knows that the na- banks lined with trees and bushes, and authorized by subsection (a), the Secretary tion faces a critical shortage of nurses. waters teaming with fish, these rivers shall consult with— The shortage has already severely im- have cement bottoms, cement banks, (1) the San Gabriel and Lower Los Angeles pacted states in many areas of the and little remaining wildlife. Rivers and Mountains Conservancy; and

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00178 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S13951 (2) any other appropriate State or local it happened, and what corrective meas- protection of American lives and prop- governmental entity. ures can be taken to prevent it from erty. This Commission will not issue SEC. 4. REPORT. ever occurring again. The American its first report until six months after Not later than 3 years after the date of en- people deserve answers to these very its first meeting, and its final report actment of this Act, the Secretary shall sub- legitimate questions about how the will be issued another year after that. mit to the Committee on Resources of the terrorists succeeded in achieving their House of Representatives and the Committee Rather than wait for these reports to on Energy and Natural Resources of the Sen- brutal objectives, and in so doing, for- be researched and submitted, we must ate a report on the findings, conclusions, and ever changing the way in which we continue the process we have already recommendations of the study required by Americans lead our lives. started to pro-actively address section 3(a). To be successful, this Commission vulnerabilities that undermine our must have a number of resources, in- daily safety. We have already received By Mr. LIEBERMAN (for himself cluding enough time, a top level staff, the valuable input of numerous other and Mr. MCCAIN): ample investigatory powers, and ade- experts and Commissions, some of S. 1867. A bill to establish the Na- quate funding, all of which we have which even issued their prescient warn- tional Commission on Terrorist At- provided for in this legislation. But ings before the events of September, tacks Upon the United States, and for most critically, it must have broad bi- such as the Hart-Rudman Commission. other purposes; to the Committee on partisan support. This Commission When this proposed Commission com- Governmental Affairs. must not become a witch-hunt. The pletes its investigation and makes its Mr. LIEBERMAN. Mr. President, I events of September 11 were so cata- final recommendations, those sugges- rise to introduce with my colleague clysmic that there is enough responsi- tions and conclusions will augment the Senator MCCAIN legislation to estab- bility to be shouldered by multiple par- record we have already developed on lish the National Commission on Ter- ties. The overriding purpose of the in- ways we can continue to safeguard our rorist Attacks Upon the United States. quiry must be a learning exercise, to nation. This Commission will have a broad understand what happened without The Commission is not only the right mandate to examine and report upon preconceptions about its ultimate find- thing to do, but this is the right time the facts and causes relating to the ings. to do it. Understandably, the initial September 11, 2001 terrorist attacks oc- Just as Presidents Roosevelt and months after September 11 were pre- curring at the World Trade Center and Johnson turned to national leaders of occupied first with mourning, and then at the Pentagon, and it will be charged their day, Justice Roberts and Chief with prosecution of the war. There with making a ‘‘full and complete ac- Justice Warren, to spearhead the Pearl were legitimate concerns that a robust counting of the circumstances sur- Harbor and Kennedy assassination in- investigation into the causes of Sep- rounding the attacks, and the extent of quiries, respectively, this Commission tember 11 would siphon resources from the United States’ preparedness for, must also draw upon the great res- the ongoing war effort. But with the and response to, the attacks.’’ It will ervoir of bipartisan talent that our na- first stage of the war against terrorism ‘‘investigate and report to the Presi- tion possesses to answer crucial and now drawing to a close, and with many dent and Congress on its findings, con- fundamental questions. We expect that perplexing questions still before us, we clusions, and recommendations for cor- members appointed to this blue-ribbon must now begin in earnest the process rective measures that can be taken to Commission will be prominent U.S. of finding answers to how it happened. prevent acts of terrorism.’’ citizens, though not currently serving This Commission should not be at odds Certain events stand out in our his- in public office, with ‘‘national rec- with the war effort of any federal agen- tory for having left an indelible mark ognition and significant depth of expe- cy; rather, its efforts will complement of pain and sorrow on America. The in- rience in such professions as govern- the internal review processes some famous attack on Pearl Harbor not mental service, law enforcement, the agencies are undergoing. only roused a slumbering giant, but armed services, legal practice, public Determining the causes and cir- also raised difficult questions about administration, intelligence gathering, cumstances of the terrorist attacks why our great Navy had been caught commerce, including aviation matters, will ensure that those who lost their unawares. The tragic assassination of and foreign affairs.’’ lives on this second American ‘‘day of President John F. Kennedy evoked To help ensure that members of the infamy’’ did not die in vain. In so powerful feelings of sorrow and loss, Commission will possess some of these doing, this Commission will not only but also searching questions about the substantive areas of expertise, which pay tribute to those who perished, but identity and motives of the assassin. are so critical to understanding and it will ensure that their survivors, and And on this past September 11, the analyzing the events of September 11, all the citizens of this great nation, United States suffered assaults on its 10 of its 14 members will be appointed continue to live life secure in the territory unparalleled in their cruelty, by the Senate and House chairmen, in knowledge that the U.S. government is destruction and loss of life. Americans consultation with their ranking minor- doing all within its powers to preserve were stunned both by the magnitude of ity members, of the Congressional their lives, liberties, and pursuits of the loss and the maliciously simple committees that oversee Intelligence, happiness. plan that had caused the carnage. Here Foreign Affairs, Armed Services, Judi- I ask unanimous consent that the too, alongside their grief and rage, the ciary, and Commerce. President Bush text of the bill be printed in the American people have been asking will appoint the four remaining mem- RECORD. questions: Why was this plan so suc- bers of the Commission, including the There being no objection, the bill was cessful in achieving its evil goals? Were Chairman, who in turn will appoint the ordered to be printed in the RECORD, as opportunities missed to prevent the de- staff. In an effort to mandate biparti- follows: struction? What additional steps sanship, or perhaps more accurately, S. 1867 should be taken now to prevent any fu- non-partisanship, no more than 7 of the Be it enacted by the Senate and House of Rep- ture attacks? Commission’s 14 members may be from resentatives of the United States of America in In the immediate aftermath of both one political party. Congress assembled, Pearl Harbor and the Kennedy assas- Though some of the Commission’s SECTION 1. ESTABLISHMENT OF COMMISSION. sination, special commissions were recommendations may include ‘‘pro- There is established the National Commis- formed to conduct investigations and posing organization, coordination, sion on Terrorist Attacks Upon the United answer similar questions. These prece- planning, management arrangements, States (in this Act referred to as the ‘‘Com- dents provide us with important mod- procedures, rules, and regulations,’’ we mission’’). els as we seek answers to such ques- cannot wait for the findings of this re- SEC. 2. PURPOSES. tions, and then use the findings to port to begin the process of strength- The purposes of the Commission are to— (1) examine and report upon the facts and move forward with strategies to re- ening our Nation’s homeland defense. causes relating to the terrorist attacks of spond to the scourge of terrorism. Like That process, of course, is already un- September 11, 2001, occurring at the World many of my constituents, I too want to derway, and must continue to occur at Trade Center in New York, New York and at know how September 11 happened, why a rapid pace to ensure the continued the Pentagon in Virginia;

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00179 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S13952 CONGRESSIONAL RECORD — SENATE December 20, 2001 (2) ascertain, evaluate, and report on the pointed, those members who have been ap- person, the chairperson of any subcommittee evidence developed by all relevant govern- pointed may meet and, if necessary, select a created by a majority of the Commission, or mental agencies regarding the facts and cir- temporary chairperson, who may begin the any member designated by a majority of the cumstances surrounding the attacks; operations of the Commission, including the Commission. (3) make a full and complete accounting of hiring of staff. (d) ASSISTANCE FROM FEDERAL AGENCIES.— the circumstances surrounding the attacks, (d) QUORUM; VACANCIES.—After its initial (1) GENERAL SERVICES ADMINISTRATION.— and the extent of the United States’ pre- meeting, the Commission shall meet upon The Administrator of General Services shall paredness for, and response to, the attacks; the call of the chairperson or a majority of provide to the Commission on a reimburs- and its members. Eight members of the Commis- able basis administrative support and other (4) investigate and report to the President sion shall constitute a quorum. Any vacancy services for the performance of the Commis- and Congress on its findings, conclusions, in the Commission shall not affect its pow- sion’s functions. and recommendations for corrective meas- ers, but shall be filled in the same manner in (2) OTHER DEPARTMENTS AND AGENCIES.—In ures that can be taken to prevent acts of ter- which the original appointment was made. addition to the assistance prescribed in para- rorism. SEC. 4. FUNCTIONS OF THE COMMISSION. graph (1), departments and agencies of the SEC. 3. COMPOSITION OF THE COMMISSION. The functions of the Commission are to— United States are authorized to provide to the Commission such services, funds, facili- (a) MEMBERS.—The Commission shall be (1) conduct an investigation into relevant composed of 14 members, of whom— facts and circumstances relating to the ter- ties, staff, and other support services as they (1) 4 members shall be appointed by the rorist attacks of September 11, 2001, includ- may determine advisable and as may be au- President; ing any relevant legislation, Executive thorized by law. (e) GIFTS.—The Commission may accept, (2) 1 member shall be appointed by the order, regulation, plan, practice, or proce- use, and dispose of gifts or donations of serv- chairperson, in consultation with the rank- dure; ices or property. ing member, of the Committee on Armed (2) review and evaluate the lessons learned (f) POSTAL SERVICES.—The Commission from the terrorist attacks of September 11, Services of the Senate ; may use the United States mails in the same 2001 regarding the structure, coordination, (3) 1 member shall be appointed by the manner and under the same conditions as de- and management arrangements of the Fed- chairperson, in consultation with the rank- partments and agencies of the United States. ing member, of the Committee on Com- eral Government relative to detecting, pre- SEC. 6. STAFF OF THE COMMISSION. merce, Science, and Transportation of the venting, and responding to such terrorist at- (a) IN GENERAL.— Senate; tacks; and (1) APPOINTMENT AND COMPENSATION.—The (3) submit to the President and Congress (4) 1 member shall be appointed by the chairperson, in accordance with rules agreed such reports as are required by this Act con- chairperson, in consultation with the rank- upon by the Commission, may appoint and taining such findings, conclusions, and rec- ing member, of the Committee on the Judici- fix the compensation of a staff director and ommendations as the Commission shall de- ary of the Senate; such other personnel as may be necessary to termine, including proposing organization, (5) 1 member shall be appointed by the enable the Commission to carry out its func- coordination, planning, management ar- chairperson, in consultation with the rank- tions, without regard to the provisions of rangements, procedures, rules, and regula- ing member, of the Select Committee on In- title 5, United States Code, governing ap- tions. telligence of the Senate; pointments in the competitive service, and (6) 1 member shall be appointed by the SEC. 5. POWERS OF THE COMMISSION. without regard to the provisions of chapter chairperson, in consultation with the rank- (a) IN GENERAL.— 51 and subchapter III of chapter 53 of such ing member, of the Committee on Foreign (1) HEARINGS AND EVIDENCE.—The Commis- title relating to classification and General Relations of the Senate; sion or, on the authority of the Commission, Schedule pay rates, except that no rate of (7) 1 member shall be appointed by the any subcommittee or member thereof, may, pay fixed under this subsection may exceed chairperson, in consultation with the rank- for the purpose of carrying out this Act— the equivalent of that payable for a position ing member, of the Committee on Armed (A) hold such hearings and sit and act at at level V of the Executive Schedule under Services of the House of Representatives; such times and places, take such testimony, section 5316 of title 5, United States Code. (8) 1 member shall be appointed by the receive such evidence, administer such (2) PERSONNEL AS FEDERAL EMPLOYEES.— chairperson, in consultation with the rank- oaths; and (A) IN GENERAL.—The executive director ing member, of the Committee on Energy (B) require, by subpoena or otherwise, the and any personnel of the Commission who and Commerce of the House of Representa- attendance and testimony of such witnesses are employees shall be employees under sec- tives; and the production of such books, records, tion 2105 of title 5, United States Code, for (9) 1 member shall be appointed by the correspondence, memoranda, papers, and purposes of chapters 63, 81, 83, 84, 85, 87, 89, chairperson, in consultation with the rank- documents, as the Commission or such des- and 90 of that title. ing member, of the Committee on the Judici- ignated subcommittee or designated member (B) MEMBERS OF COMMISSION.—Subpara- ary of the House of Representatives; may determine advisable. graph (A) shall not be construed to apply to (10) 1 member shall be appointed by the (2) SUBPOENAS.—Subpoenas issued under members of the Commission. chairperson, in consultation with the rank- paragraph (1)(B) may be issued under the sig- (b) DETAILEES.—Any Federal Government ing member, of the Permanent Select Com- nature of the chairperson of the Commission, employee may be detailed to the Commission mittee on Intelligence of the House of Rep- the chairperson of any subcommittee created without reimbursement from the Commis- resentatives; and by a majority of the Commission, or any sion, and such detailee shall retain the (11) 1 member shall be appointed by the member designated by a majority of the rights, status, and privileges of his or her chairperson, in consultation with the rank- Commission, and may be served by any per- regular employment without interruption. ing member, of the Committee on Inter- son designated by the chairperson, sub- (c) CONSULTANT SERVICES.—The Commis- national Relations of the House of Rep- committee chairperson, or member. Sections sion is authorized to procure the services of resentatives. 102 through 104 of the Revised Statutes of the experts and consultants in accordance with (b) CHAIRPERSON.—The President shall se- United States (2 U.S.C. 192 through 194) shall section 3109 of title 5, United States Code, lect the chairperson of the Commission. apply in the case of any failure of any wit- but at rates not to exceed the daily rate paid (c) QUALIFICATIONS; INITIAL MEETING.— ness to comply with any subpoena or to tes- a person occupying a position at level IV of (1) POLITICAL PARTY AFFILIATION.—Not tify when summoned under authority of this the Executive Schedule under section 5315 of more than 7 members of the Commission section. title 5, United States Code. shall be from the same political party. (b) CONTRACTING.—The Commission may, SEC. 7. COMPENSATION AND TRAVEL EXPENSES. (2) NONGOVERNMENTAL APPOINTEES.—An in- to such extent and in such amounts as are (a) COMPENSATION.—Each member of the dividual appointed to the Commission may provided in appropriation Acts, enter into Commission may be compensated at not to not be an officer or employee of the Federal contracts to enable the Commission to dis- exceed the daily equivalent of the annual Government or any State or local govern- charge its duties under this Act. rate of basic pay in effect for a position at ment. (c) INFORMATION FROM FEDERAL AGEN- level IV of the Executive Schedule under sec- (3) OTHER QUALIFICATIONS.—It is the sense CIES.—The Commission is authorized to se- tion 5315 of title 5, United States Code, for of Congress that individuals appointed to the cure directly from any executive depart- each day during which that member is en- Commission should be prominent United ment, bureau, agency, board, commission, of- gaged in the actual performance of the du- States citizens, with national recognition fice, independent establishment, or instru- ties of the Commission. and significant depth of experience in such mentality of the Government information, (b) TRAVEL EXPENSES.—While away from professions as governmental service, law en- suggestions, estimates, and statistics for the their homes or regular places of business in forcement, the armed services, legal prac- purposes of this Act. Each department, bu- the performance of services for the Commis- tice, public administration, intelligence reau, agency, board, commission, office, sion, members of the Commission shall be al- gathering, commerce, including aviation independent establishment, or instrumen- lowed travel expenses, including per diem in matters, and foreign affairs. tality shall, to the extent authorized by law, lieu of subsistence, in the same manner as (4) INITIAL MEETING.—If 60 days after the furnish such information, suggestions, esti- persons employed intermittently in the Gov- date of enactment of this Act, 8 or more mates, and statistics directly to the Com- ernment service are allowed expenses under members of the Commission have been ap- mission, upon request made by the chair- section 5703(b) of title 5, United States Code.

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00180 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S13953 SEC. 8. SECURITY CLEARANCES FOR COMMIS- As we did after Pearl Harbor and the seas, let us marshal our resolve to de- SION MEMBERS AND STAFF. Kennedy assassination, we need a blue- fend our homeland, not merely through The appropriate executive departments and agencies shall cooperate with the Com- ribbon team of distinguished Ameri- force of arms, but through reasoned mission in expeditiously providing to the cans from all walks of life to thor- introspection into how September 11th Commission members and staff appropriate oughly investigate all evidence sur- happened, what we’ve learned, and how security clearances in a manner consistent rounding the attacks, including how we can apply those lessons to the de- with existing procedures and requirements, prepared we were and how well we re- fense of the American people. except that no person shall be provided with sponded to this unprecedented assault. More than 2 years ago, the bipartisan access to classified information under this It will require digging deep into the Hart-Rudman Commission on National section who would not otherwise qualify for resources of the full range of govern- such security clearance. Security envisioned a time when ter- ment agencies. It will demand objec- SEC. 9. REPORTS OF THE COMMISSION; TERMI- rorists and rogue nations would ac- NATION. tive judgment into what went wrong, quire weapons of mass destruction and (a) INITIAL REPORT.—Not later than 6 what we did right, and what else we ‘‘mass disruption.’’ months after the date of the first meeting of need to do to deter and defeat depraved ‘‘Americans will likely die on Amer- the Commission, the Commission shall sub- assaults against innocent lives in the ican soil,’’ the commission warned, mit to the President and Congress an initial future. ‘‘possibly in large numbers.’’ report containing such findings, conclusions, This is no witch hunt. Our enemies That time has come. The worst has and recommendations for corrective meas- ures as have been agreed to by a majority of would be strengthened if their attacks happened. But it must not happen Commission members. caused us to turn on ourselves, con- again. We hope history will judge (b) ADDITIONAL REPORTS.—Not later than 1 sumed not with the malevolence of our America well for her response to Sep- year after the submission of the initial re- foes but with our own failings. tember 11th—the incredible bravery of port of the Commission, the Commission We are a proud nation, a strong na- so many Americans, and the measures shall submit to the President and Congress a tion. However horrible, September 11th we have already put in place to prevent second report containing such findings, con- reminded us of our love of country, our clusions, and recommendations for correc- future acts of catastrophic terrorism. tive measures as have been agreed to by a fierce patriotic pride. It highlighted The commission is an integral part of majority of Commission members. the distinctive accomplishments of our our response to the attacks of Sep- (c) TERMINATION.— civilization, and the sacrifices we will tember 11. Its mission is urgent. The (1) IN GENERAL.—The Commission, and all endure to defend it against evil. It American people clearly share our the authorities of this Act, shall terminate made us stronger. sense of urgency about protecting our 60 days after the date on which the second That said, if there were serious fail- country. I hope our proposed commis- report is submitted under subsection (b). ures on the part of individuals or insti- sion can channel that sense of urgency (2) ADMINISTRATIVE ACTIVITIES BEFORE TER- tutions within the government or the MINATION.—The Commission may use the 60- into a mandate for reform of the way day period referred to in paragraph (1) for private sector, we have a right to we defend America. the purpose of concluding its activities, in- know, indeed a need to know. But to cluding providing testimony to committees work, this must be a learning exercise, By Mr. BIDEN: of Congress concerning its reports and dis- without preconceptions about the in- S. 1868. A bill to establish a national seminating the second report. quiry’s ultimate findings. center on volunteer and provider SEC. 10. AUTHORIZATION OF APPROPRIATIONS. The commission’s members should screening to reduce sexual and other There are authorized to be appropriated to include leading citizens not now hold- abuse of children, the elderly, and indi- the Commission to carry out this Act ing public office, but with broad experi- viduals with disabilities; to the Com- $3,000,000, to remain available until ex- mittee on the Judiciary. pended. ence in national affairs. The commis- sion should have an adequate budget, a Mr. BIDEN. Mr. President, I rise Mr. MCCAIN. Mr. President, I am top-level staff, and ample investigatory today to introduce the National Child pleased to join my friend JOE LIEBER- resources—including subpoena power, Protection Improvement Act of 2001. MAN in introducing legislation calling if it is needed to uncover the truth. Today, 87 million of our children are for a blue-ribbon commission to exam- To be effective and legitimate, the involved in provided by child and youth ine the facts surrounding the Sep- commission should be given a broad organizations which depend heavily on tember 11th attacks, and to propose re- mandate to discover facts and rec- volunteers to deliver their services. forms to better defend our country in ommend corrective actions. It should Millions more adults are also served by the future. public and private voluntary organiza- After Pearl Harbor and President be given time to proceed with care and tions. Organizations across the coun- Kennedy’s assassination, the President deliberation. It should have the stature try, like the Boys and Girls Clubs, and Congress established boards of in- and significance afforded by its grave quiry to investigate these tragedies mission of telling the whole truth often rely solely on volunteers to make and recommend measures to prevent about September 11th, and telling us these safe havens for kids a place their recurrence. what we need to know to protect where they can learn. The Boys and The terrorist attacks in New York against future tragedy. Girls Clubs and others don’t just pro- and Washington represent a watershed To be credible, this inquiry must be vide services to kids, their work rever- in American history—the end of an era independent from ongoing government berates throughout our communities, of general peace and prosperity, and a operations, but it must of necessity as the after-school programs they pro- terrible awakening to the threats draw on the resources of government. vide help keep kids out of trouble. This against our people that lurk within, The commission’s conclusions and rec- is juvenile crime prevention at its best, and beyond, our shores. ommendations will have enduring and I salute the volunteers who help To prevent future tragedies, we need meaning only if they are valued by make these programs work. to know how September 11th could those of us who can set them in mo- Unfortunately, some of these volun- have happened, and explore what we tion—the President, the Congress, and teers come to their jobs with less than can do to be sure America never again all concerned Americans. the best of intentions. According to the suffers such an attack on her soil. Our best defense now lies in pursuing National Mentoring Partnership, inci- I believe President Bush and his team our enemy overseas, and working here dents of child sexual abuse in child have responded forcefully, admirably, at home to adapt to the challenges of care settings, foster homes and schools and with a sense of purpose in this this new day. We can rid the world of ranges from 1 to 7 percent. Volunteer time of trial. But neither the Adminis- terrorism’s scourge. But it will take organizations have tried to weed out tration nor Congress is capable of con- time, and our campaign will likely in- bad apples, and today most conduct ducting a thorough, nonpartisan, inde- spire further, desperate tests of our re- background checks on applicants who pendent inquiry into what happened on solve. seek to work with children. Unfortu- September 11th, or to propose far- More Americans may die before we nately, these checks can often take reaching reforms needed to protect our are through. In this moment when we months to complete, can be expensive, people and our institutions against the enjoy peace at home, even as brave and many organizations do not have enemies of freedom. Americans risk their lives for us over- access to the FBI’s national fingerprint

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00181 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S13954 CONGRESSIONAL RECORD — SENATE December 20, 2001 database. These time delays and scope nonprofit agencies and organizations result struction, supervision, or recreation to chil- limitations are dangerous: a prospec- in the delivery of much needed services in dren, the elderly, or individuals with disabil- tive volunteer could pass a name-based safe environments that could not be provided ities. without the assistance of virtually millions background check in one state, only to of volunteers, but abuses do occur. ‘‘SEC. 604. ESTABLISHMENT OF A NATIONAL CEN- have a past felony committed in an- TER FOR VOLUNTEER AND PRO- ‘‘(4) Estimates of the incidence of child VIDER SCREENING. other jurisdiction go undetected. sexual abuse in child care settings, foster Today I am introducing a bill de- care homes, and schools, range from 1 to 7 ‘‘(a) IN GENERAL.—The Attorney General, signed to solve some of these problems. percent. by agreement with a national nonprofit or- The National Child Protection Im- ‘‘(5) Abuse traumatizes the victims and ganization or by designating an agency with- provement Act of 2001 creates a new, shakes public trust in care providers and or- in the Department of Justice, shall— FBI national center to conduct crimi- ganizations serving vulnerable populations. ‘‘(1) establish a national center for volun- ‘‘(6) Congress has acted to address concerns nal history fingerprint checks at the teer and provider screening designed— about this type of abuse through the Na- ‘‘(A) to serve as a point of contact for request of volunteer organizations. tional Child Protection Act of 1993 and the qualified entities to request a nationwide Funds are authorized so that volunteer Violent Crime Control Act of 1994 to set background check for the purpose of deter- organizations could have the national forth a framework for screening through mining whether a volunteer provider or pro- checks performed at no cost to them, criminal record checks of care providers, in- vider has been arrested for or convicted of a the Federal government ought to be cluding volunteers who work with children, crime that renders the provider unfit to have supporting those groups who seek to the elderly, and individuals with disabilities. responsibilities for the safety and well-being Unfortunately, problems regarding the safe- of children, the elderly, or individuals with safeguard our kids, and this is a mod- ty of these vulnerable groups still remain. est investment that deserves to be disabilities; ‘‘(7) While State screening is sometimes ‘‘(B) to promptly access and review Federal made. Other child-serving organiza- adequate to conduct volunteer background and State criminal history records and reg- tions who sought the services of the checks, more extensive national criminal istries through the national criminal history new national center would have checks history checks using fingerprints or other background check system— conducted at a minimal cost. My bill means of positive identification are often ad- ‘‘(i) at no cost to a qualified entity for envisions as many as 10 million back- visable, as a prospective volunteer or nonvol- checks on volunteer providers; and unteer provider may have lived in more than ground checks conducted per year at ‘‘(ii) at minimal cost to qualified entities one State. for checks on non-volunteer providers; this center, enough to prevent felons ‘‘(8) The high cost of fingerprint back- and other dangerous members of soci- ground checks is unaffordable for organiza- with cost for screening non-volunteer pro- ety from getting anywhere near our tions that use a large number of volunteers viders will be determined by the National kids. States perform many of these and, if passed on to volunteers, often dis- Task Force; courages their participation. ‘‘(C) to provide the determination of the checks today, so to help them do their criminal background check to the qualified jobs better my bill authorizes $5 mil- ‘‘(9) The current system of retrieving na- tional criminal background information on entity requesting a nationwide background lion per year to hire personnel and im- volunteers through an authorized agency of check after not more than 15 business days prove fingerprint technology so that the State is cumbersome and often requires after the request; they can update information in na- months before vital results are returned. ‘‘(D) to serve as a national resource center tional databases. ‘‘(10) In order to protect children, volun- and clearinghouse to provide State and local All of us understand the positive im- teer agencies must currently depend on a governments, public and private nonprofit pact that volunteer organizations are convoluted, disconnected, and sometimes du- agencies and individuals with information plicative series of checks that leave children regarding volunteer screening; and making. Now we need to give these ‘‘(2) establish a National Volunteer Screen- groups the tools and resources they at risk. ‘‘(11) A national volunteer and provider ing Task Force (referred to in this title as need to ensure absolute safety for the screening center is needed to protect vulner- the ‘Task Force’) to be chaired by the Attor- children they serve. able groups by providing effective, efficient ney General which shall— I ask unanimous consent that the national criminal history background checks ‘‘(A) include— text of this bill be printed in the of volunteer providers at no-cost, and at ‘‘(i) 2 members each of— RECORD. minimal-cost for employed care providers. ‘‘(I) the Federal Bureau of Investigation; There being no objection, the bill was ‘‘SEC. 603. DEFINITIONS. ‘‘(II) the Department of Justice; ‘‘In this Act— ‘‘(III) the Department of Health and ordered to be printed in the RECORD, as Human Services; follows: ‘‘(1) the term ‘qualified entity’ means a business or organization, whether public, pri- ‘‘(IV) representatives of State Law En- S. 1868 vate, for-profit, not-for-profit, or voluntary, forcement organizations; Be it enacted by the Senate and House of Rep- that provides care or care placement serv- ‘‘(V) national organizations representing resentatives of the United States of America in ices, including a business or organization private nonprofit qualified entities using Congress assembled, that licenses or certifies others to provide volunteers to serve the elderly; and SECTION 1. SHORT TITLE. care or care placement services designated ‘‘(VI) national organizations representing This Act may be cited as the ‘‘National by the National Task Force; private nonprofit qualified entities using Child Protection Improvement Act’’. ‘‘(2) the term ‘volunteer provider’ means a volunteers to serve individuals with disabil- ities; and SEC. 2. ESTABLISHMENT OF A NATIONAL CENTER person who volunteers or seeks to volunteer ON VOLUNTEER AND PROVIDER with a qualified entity; ‘‘(ii) 4 members of national organizations SCREENING. ‘‘(3) the term ‘provider’ means a person representing private nonprofit qualified enti- The Juvenile Justice and Delinquency Pre- who is employed by or volunteers or who ties using volunteers to serve children; vention Act of 1974 (42 U.S.C. 5601 et seq.) is seeks to be employed by or volunteer with a to be appointed by the Attorney General; amended by adding at the end the following: qualified entity, who owns or operates a and qualified entity, or who has or may have un- ‘‘TITLE VI—NATIONAL CENTER ON ‘‘(B) oversee the work of the Center and re- supervised access to a child to whom the VOLUNTEER AND PROVIDER SCREENING port at least annually to the President and qualified entity provides care; Congress with regard to the work of the Cen- ‘‘SEC. 601. SHORT TITLE. ‘‘(4) the term ‘national criminal back- ter and the progress of the States in com- ‘‘This title may be cited as the ‘National ground check system’ means the criminal plying with the provisions of the National Child Protection Improvement Act’. history record system maintained by the Child Protection Act of 1993. ‘‘SEC. 602. FINDINGS. Federal Bureau of Investigation based on fin- ‘‘Congress finds the following: gerprint identification or any other method ‘‘SEC. 605. AUTHORIZATION OF APPROPRIATIONS. ‘‘(1) More than 87,000,000 children are in- of positive identification; ‘‘(a) IN GENERAL.—To carry out the provi- volved each year in activities provided by ‘‘(5) the term ‘child’ means a person who is sions of this title, there are authorized to be child and youth organizations which depend under the age of 18; appropriated $80,000,000 for fiscal year 2003 heavily on volunteers to deliver their serv- ‘‘(6) the term ‘individuals with disabilities’ and $25,000,000 for each of the fiscal years ices. has the same meaning as that provided in 2004, 2005, 2006, and 2007, sufficient to provide ‘‘(2) Millions more adults, both the elderly section 5(7) of the National Child Protection no-cost background checks of volunteers and individuals with disabilities, are served Act of 1993; working with children, the elderly, and indi- by public and private voluntary organiza- ‘‘(7) the term ‘State’ has the same meaning viduals with disabilities. tions. as that provided in section 5(11) of the Na- ‘‘(3) The vast majority of activities pro- tional Child Protection Act of 1993; and ‘‘(b) AVAILABILITY.—Sums appropriated vided to children, the elderly, and individ- ‘‘(8) the term ‘care’ means the provision of under this section shall remain available uals with disabilities by public and private care, treatment, education, training, in- until expended.’’.

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00182 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S13955 SEC. 3. STRENGTHENING AND ENFORCING THE viders based upon criminal history record in- S. 1870. A bill to amend the Clean Air NATIONAL CHILD PROTECTION ACT formation. OF 1993. Act to establish an inventory, registry, ‘‘(c) LIMITATIONS OF LIABILITY.— and information system of United Section 3 of the National Child Protection ‘‘(1) IN GENERAL.—A qualified entity shall Act of 1993 (42 U.S.C. 5119 et seq.) is amended not be liable in an action for damages solely States greenhouse gas emissions to in- to read as follows: for failure to request a criminal history form the public and private sector con- ‘‘SEC. 3. NATIONAL BACKGROUND CHECKS. background check on a provider, nor shall a cerning, and encourage voluntary re- ‘‘(a) IN GENERAL.—Requests for national State or political subdivision thereof nor any ductions in, greenhouse emissions; to background checks under this section shall agency, officer or employee thereof, be liable the Committee on Environment and be submitted to the National Center for Vol- in an action for damages for the failure of a unteer Screening which shall conduct a Public Works. qualified entity (other than itself) to take Mr. CORZINE. Mr. President, I rise search using the Integrated Automated Fin- action adverse to a provider who was the gerprint Identification System, or other subject of a criminal background check. today to introduce a bill that rep- criminal record checks using reliable means ‘‘(2) RELIANCE.—The National Center or a resents an important step towards the of positive identification subject to the fol- qualified entity that reasonably relies on goal of addressing the threats posed by lowing conditions: criminal history record information received global climate change. I am pleased to ‘‘(1) A qualified entity requesting a na- in response to a background check pursuant tional criminal history background check be joined on this bill by Senator JEF- to this section shall not be liable in an ac- under this section shall forward to the Na- FORDS and Senator LIEBERMAN. They tion for damages based upon the inaccuracy tional Center the provider’s fingerprints or are recognized environmental leaders or incompleteness of the information. other identifying information, and shall ob- in the Senate, and are long-standing, ‘‘(d) FEES.—In the case of a background tain a statement completed and signed by check pursuant to a State requirement outspoken advocates for taking action the provider that— adopted after December 20, 1993, conducted to mitigate climate change. I appre- ‘‘(A) sets out the provider or volunteer’s through the National Center using the fin- ciate their help in introducing this leg- name, address, date of birth appearing on a gerprints or other identifying information of islation today. valid identification document as defined in a person who volunteers with a qualified en- section 1028 of title 18, United States Code, Climate change is an enormously tity shall be free of charge. This subsection complex issue in every aspect. Scientif- and a photocopy of the valid identifying doc- shall not affect the authority of the FBI, the ument; National Center, or the States to collect rea- ically. Economically. Politically. But ‘‘(B) states whether the provider or volun- sonable fees for conducting criminal history complexity is no excuse for inattention teer has a criminal record, and, if so, sets background checks of providers who are em- or inaction. Because the health and vi- out the particulars of such record; ployed as or apply for positions as paid em- ability of the global ecosystems upon ‘‘(C) notifies the provider or volunteer that ployees.’’. which we all depend are at stake. The the National Center for Volunteer Screening SEC. 4. ESTABLISHMENT OF A MODEL PROGRAM time to act is now. may perform a criminal history background IN EACH STATE TO STRENGTHEN check and that the provider’s signature to CRIMINAL DATA REPOSITORIES AND Earlier this year, the Intergovern- the statement constitutes an acknowledge- FINGERPRINT TECHNOLOGY. mental Panel on Climate Change re- ment that such a check may be conducted; (a) ESTABLISHMENT.—A model program cently released its Third Assessment ‘‘(D) notifies the provider or volunteer that shall be established in each State and the Report, and the science is increasingly prior to and after the completion of the District of Columbia for the purpose of im- clear and alarming. We know that background check, the qualified entity may proving fingerprinting technology which human activities, primarily fossil fuel shall grant to each State $50,000 to either— choose to deny the provider access to chil- combustion, have raised the atmos- dren or elderly or persons with disabilities; (1) purchase Live-Scan fingerprint tech- and nology and a State-vehicle to make such pheric concentration of carbon dioxide ‘‘(E) notifies the provider or volunteer of technology mobile and these mobile units to the highest levels in the last 420,000 his right to correct an erroneous record held shall be used to travel within the State to years. We know that the planet is by the FBI or the National Center. assist in the processing of fingerprint back- warming, and that the balance of the ‘‘(2) Statements obtained pursuant to para- ground checks; or scientific evidence suggests that most graph (1) and forwarded to the National Cen- (2) purchase electric fingerprint imaging of the recent warming can be attrib- ter shall be retained by the qualified entity machines for use throughout the State to uted to increased atmospheric green- send fingerprint images to the National Cen- or the National Center for at least 2 years. house gas levels. We know that without ‘‘(3) Each provider or volunteer who is the ter to conduct background checks. subject of a criminal history background (b) ADDITIONAL FUNDS.—In addition to concerted action by the U.S. and other check under this section is entitled to con- funds provided in subsection (a), $50,000 shall countries, greenhouse gases will con- tact the National Center to initiate proce- be provided to each State and the District of tinue to increase. dures to— Columbia to hire personnel to— Finally, we know that climate mod- ‘‘(A) obtain a copy of their criminal his- (1) provide information and training to els have improved, and that these mod- tory record report; and each county law enforcement agency within the State regarding all National Child Pro- els predict warming under all scenarios ‘‘(B) challenge the accuracy and complete- that have been considered. Even the ness of the criminal history record informa- tection Act requirements for input of crimi- tion in the report. nal and disposition data into the national smallest warming predicted by current ‘‘(4) The National Center receiving a crimi- criminal history background check system; models, 2.5 degrees Fahrenheit over the nal history record information that lacks and next century, would represent the disposition information shall, to the extent (2) provide an annual summary to the Na- greatest rate of increase in global possible, contact State and local record- tional Task Force of the State’s progress in mean surface temperature in the last keeping systems to obtain complete informa- complying with the criminal data entry pro- 10,000 years. visions of the National Child Protection Act tion. If these trends continue, the results ‘‘(5) The National Center shall make a de- of 1993 which shall include information about termination whether the criminal history the input of criminal data, child abuse crime may be devastating. People in my record information received in response to information, domestic violence arrests and home State of New Jersey treasure the national background check indicates stay-away orders of protection. their Jersey Shore. Like all coastal that the provider has a criminal history (c) AUTHORIZATION OF APPROPRIATIONS.— areas, the Jersey Shore is threatened record that renders the provider unfit to pro- (1) IN GENERAL.—To carry out the provi- by projected changes in sea levels due vide care to children, the elderly, or individ- sions of this section, there are authorized to to climate change. I am concerned uals with disabilities based upon criteria es- be appropriated a total of $5,100,000 for fiscal year 2003 and such sums as may be necessary about this impact. And I am concerned tablished by the National Task Force on Vol- about other climate change impacts unteer Screening, and will convey that de- for each of the fiscal years 2004, 2005, 2006, termination to the qualified entity. and 2007, sufficient to improve fingerprint across New Jersey, the country and the ‘‘(b) GUIDANCE BY THE NATIONAL TASK technology units and hire data entry im- globe. FORCE.—The National Task Force, chaired provement personnel in each of the 50 States I believe we need to take reasonable by the Attorney General shall— and the District of Columbia. steps today start dealing with this ‘‘(1) encourage the use, to the maximum (2) AVAILABILITY.—Sums appropriated issue. And I think this bill will make under this section shall remain available extent possible, of the best technology avail- an important incremental step. able in conducting criminal background until expended. checks; and The main provisions of the bill estab- ‘‘(2) provide guidelines concerning stand- By Mr. CORZINE (for himself, lish a system that would require com- ards to guide the National Center in making Mr. JEFFORDS, and Mr. LIEBER- panies to estimate and report their fitness determinations concerning care pro- MAN): emissions of greenhouse gases, as well

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00183 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S13956 CONGRESSIONAL RECORD — SENATE December 20, 2001 as a place where companies can reg- and will assist them in making the ‘‘TITLE VII—GREENHOUSE GAS EMISSIONS ister greenhouse gas emissions reduc- case for credits if a mandatory green- ‘‘SEC. 701. DEFINITIONS. tions. In addition, the bill would re- house gas emission reduction program ‘‘In this title: quire an annual report on U.S. green- is ever enacted. ‘‘(1) COVERED ENTITY.—The term ‘covered house gas emissions. I’d like to go Finally, the bill requires EPA to an- entity’ means an entity that emits more nually publish a greenhouse gas emis- than a threshold quantity of greenhouse gas through each of these components in emissions. sions inventory. This will be a national more detail. ‘‘(2) DIRECT EMISSIONS.—The term ‘direct First, the bill requires EPA to work account of greenhouse gas emissions emissions’ means greenhouse gas emissions with the Secretaries of Energy, Com- for our Nation, and will incorporate from a source that is owned or controlled by merce and Agriculture, as well as the the information submitted to the an entity. private sector and non-governmental greenhouse gas information system and ‘‘(3) ENTITY.—The term ‘entity’ includes a organizations to establish a greenhouse registry. EPA has issued such a report firm, a corporation, an association, a part- gas emission information system. For for several years now, and this provi- nership, and a Federal agency. the purposes of the bill, greenhouse sion is intended to explicitly authorize ‘‘(4) GREENHOUSE GAS.—The term ‘green- house gas’ means— gases are carbon dioxide, methane, ni- and expand the scope of this report. ‘‘(A) carbon dioxide; trous oxide, hydrofluorocarbons, I know that there are technical chal- ‘‘(B) methane; perfluorocarbons, and sulfur lenges associated with measuring ‘‘(C) nitrous oxide; hexafluoride. EPA is directed to estab- greenhouse gas emissions and reduc- ‘‘(D) hydrofluorocarbons; lish threshold quantities for each of tions. But many advances have been ‘‘(E) perfluorocarbons; and these gases. The threshold quantities made in recent years, often in a cooper- ‘‘(F) sulfur hexafluoride. will trigger the requirement for a com- ative way, with industry, environ- ‘‘(5) GREENHOUSE GAS EMISSIONS.—The term mental groups and governments at the ‘greenhouse gas emissions’ means emissions pany to report to the system, and are of a greenhouse gas, including— included to enable exclusion of most table. It’s my intent that the systems ‘‘(A) stationary combustion source emis- small businesses from the reporting re- and protocols developed under this bill sions, which are emitted as a result of com- quirements. Companies that emit more conform to the best practices that have bustion of fuels in stationary equipment than a threshold quantity of each gas been and continue to be developed in such as boilers, furnaces, burners, turbines, will be required to report their emis- this fashion. heaters, incinerators, engines, flares, and sions on an annual basis to EPA. The I urge my colleagues to join with me other similar sources; ‘‘(B) process emissions, which consist of requirements will be phased in, begin- in this legislation. Let’s start taking reasonable steps to address the threat emissions from chemical or physical proc- ning with stationary source emissions esses other than combustion; in 2003. The following year, in 2004, of climate change. I ask unanimous ‘‘(C) fugitive emissions, which consist of companies subject to the reporting re- consent that the text of the bill be intentional and unintentional emissions quirements will need to submit to EPA printed in the RECORD. from— estimates of other types of greenhouse There being no objection, the bill was ‘‘(i) equipment leaks such as joints, seals, gas emissions, such as process emis- ordered to be printed in the RECORD, as packing, and gaskets; and ‘‘(ii) piles, pits, cooling towers, and other sions, fugitive emissions, mobile source follows: S. 1870 similar sources; and emissions, forest product-sector emis- ‘‘(D) mobile source emissions, which are Be it enacted by the Senate and House of Rep- sions, and indirect emissions from heat emitted as a result of combustion of fuels in resentatives of the United States of America in and steam. transportation equipment such as auto- Congress assembled, Just as important as the reporting mobiles, trucks, trains, airplanes, and ves- SECTION 1. SHORT TITLE. sels. system is the greenhouse gas registry This Act may be cited as the ‘‘National ‘‘(6) GREENHOUSE GAS EMISSIONS RECORD.— established by the bill. The bill re- Greenhouse Gas Emissions Inventory and quires EPA to work with the same set The term ‘greenhouse gas emissions record’ Registry Act of 2001’’. means all of the historical greenhouse gas of actors to establish this greenhouse SEC. 2. FINDINGS AND PURPOSE. emissions and project reduction data sub- gas registry, which will enable compa- (a) FINDINGS.—Congress finds that— mitted by an entity under this title, includ- nies to register greenhouse gas reduc- (1) human activities have caused rapid in- ing any adjustments to such data under sec- tions. Many companies are voluntarily creases in atmospheric concentrations of tion 704(c). implementing projects to reduce emis- carbon dioxide and other greenhouse gases in ‘‘(7) GREENHOUSE GAS REPORT.—The term sions or sequester carbon. The registry the last century; ‘greenhouse gas report’ means an annual list (2) according to the Intergovernmental would establish a place for companies of the greenhouse gas emissions of an entity Panel on Climate Change and the National and the sources of those emissions. to be able to put these projects on pub- Research Council— ‘‘(8) INDIRECT EMISSIONS.—The term ‘indi- lic record in a consistent and reliable (A) the Earth has warmed in the last cen- rect emissions’ means greenhouse gas emis- way. tury; and sions that are a consequence of the activities Taken together, these provisions of (B) the majority of the observed warming of an entity but that are emitted from the bill will accomplish several impor- is attributable to human activities; sources owned or controlled by another enti- tant goals. First, they will create a re- (3) despite the fact that many uncertain- ty. liable record of the sources of green- ties in climate science remain, the potential ‘‘(9) NATIONAL GREENHOUSE GAS EMISSIONS impacts from human-induced climate change house gas emissions within our econ- INFORMATION SYSTEM.—The term ‘national pose a substantial risk that should be man- greenhouse gas emissions information sys- omy. This will provide the public and aged in a responsible manner; and tem’ means the information system estab- private sector with important informa- (4) to begin to manage climate change lished under section 702(a). tion that, if necessary, can be used to risks, public and private entities will need a ‘‘(10) NATIONAL GREENHOUSE GAS EMISSIONS identify the most cost-effective ways comprehensive, accurate inventory, registry, INVENTORY.—The term ‘national greenhouse to reduce greenhouse gas emissions. and information system of the sources and gas emissions inventory’ means the national Perhaps more importantly, these pro- quantities of United States greenhouse gas inventory of greenhouse gas emissions estab- visions will provide a powerful incen- emissions. lished under section 705. (b) PURPOSE.—The purpose of this Act is to tive for companies to continue to make ‘‘(11) NATIONAL GREENHOUSE GAS REG- establish a mandatory greenhouse gas inven- ISTRY.—The term ‘national greenhouse gas voluntary greenhouse gas reductions. tory, registry, and information system registry’ means the national greenhouse gas By requiring emissions reporting, and that— registry established under section 703(a). making that information available to (1) is complete, consistent, transparent, ‘‘(12) PROJECT REDUCTION.—The term the public, companies may face in- and accurate; ‘project reduction’ means— creased scrutiny with respect to their (2) will create accurate data that can be ‘‘(A) a greenhouse gas emission reduction greenhouse gas emissions. But they used by public and private entities to design achieved by carrying out a greenhouse gas will also have a place where they can efficient and effective greenhouse gas emis- emission reduction project; and sion reduction strategies; and register their greenhouse gas reduc- ‘‘(B) sequestration achieved by carrying (3) will encourage greenhouse gas emission out a sequestration project. tions project in a consistent and uni- reductions. ‘‘(13) REPORTING ENTITY.—The term ‘report- form way. This will enable companies SEC. 3. GREENHOUSE GAS EMISSIONS. ing entity’ means an entity that reports to to demonstrate the actions that they The Clean Air Act (42 U.S.C. 1701 et seq.) is the Administrator under subsection (a) or (b) are taking to reduce their emissions, amended by adding at the end the following: of section 704.

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‘‘(14) SEQUESTRATION.—The term ‘seques- tent practicable, the Administrator shall in- tablish threshold quantities of emissions for tration’ means the long-term separation, iso- tegrate all information in the national each combination of a source and a green- lation, or removal of greenhouse gases from greenhouse gas registry with other environ- house gas that is subject to the mandatory the atmosphere, including through a biologi- mental information collected by the Admin- reporting requirements under this sub- cal or geologic method such as reforestation istrator. section. or an underground reservoir. ‘‘SEC. 704. REPORTING. ‘‘(b) VOLUNTARY REPORTING TO NATIONAL ‘‘(15) THRESHOLD QUANTITY.—The term ‘‘(a) MANDATORY REPORTING TO NATIONAL GREENHOUSE GAS REGISTRY.— ‘threshold quantity’ means a threshold quan- GREENHOUSE GAS EMISSIONS INFORMATION ‘‘(1) IN GENERAL.—Not later than April 30, tity for mandatory greenhouse gas reporting SYSTEM.— 2004, and each April 30 thereafter, in accord- established by the Administrator under sec- ‘‘(1) INITIAL REPORTING REQUIREMENTS.— tion 704(a)(3). ance with this subsection and the regula- ‘‘(A) IN GENERAL.—Not later than April 30, tions promulgated under section 706(f), an ‘‘(16) VERIFICATION.—The term 2003, in accordance with this paragraph and ‘verification’ means the objective and inde- entity may voluntarily report to the Admin- the regulations promulgated under section istrator, for inclusion in the national green- pendent assessment of whether a greenhouse 706(e)(1), each covered entity shall submit to gas report submitted by a reporting entity house gas registry, with respect to the pre- the Administrator, for inclusion in the na- ceding calendar year and any greenhouse gas accurately reflects the greenhouse gas im- tional greenhouse gas emissions information pact of the reporting entity. emitted by the entity— system, the greenhouse gas report of the cov- ‘‘(A) project reductions; ‘‘SEC. 702. NATIONAL GREENHOUSE GAS EMIS- ered entity with respect to— ‘‘(B) transfers of project reductions to and SIONS INFORMATION SYSTEM. ‘‘(i) calendar year 2002; and from any other entity; ‘‘(a) ESTABLISHMENT.—In consultation with ‘‘(ii) each greenhouse gas emitted by the ‘‘(C) project reductions and transfers of the Secretary of Commerce, the Secretary of covered entity in an amount that exceeds project reductions outside the United States; Agriculture, the Secretary of Energy, States, the applicable threshold quantity. ‘‘(D) indirect emissions that are not re- the private sector, and nongovernmental or- ‘‘(B) REQUIRED ELEMENTS.—Each green- quired to be reported under subsection ganizations concerned with establishing house gas report submitted under subpara- (a)(2)(B)(ii) (such as product transport, waste standards for reporting of greenhouse gas graph (A)— disposal, product substitution, travel, and emissions, the Administrator shall establish ‘‘(i) shall include estimates of direct sta- employee commuting); and and administer a national greenhouse gas tionary combustion source emissions; ‘‘(E) product use phase emissions. emissions information system to collect in- ‘‘(ii) shall express greenhouse gas emis- ‘‘(2) TYPES OF ACTIVITIES.—Under para- formation reported under section 704(a). sions in metric tons of the carbon dioxide ‘‘(b) SUBMISSION TO CONGRESS OF DRAFT DE- equivalent of each greenhouse gas emitted; graph (1), an entity may report activities SIGN.—Not later than 180 days after the date ‘‘(iii) shall specify the sources of green- that reduce greenhouse gas emissions or se- of enactment of this title, the Administrator house gas emissions that are included in the quester a greenhouse gas, including— shall submit to Congress a draft design of greenhouse gas report; ‘‘(A) fuel switching; the national greenhouse gas emissions infor- ‘‘(iv) shall be reported on an entity-wide ‘‘(B) energy efficiency improvements; mation system. basis and on a facility-wide basis; and ‘‘(C) use of renewable energy; ‘‘(c) AVAILABILITY OF DATA TO THE PUB- ‘‘(v) to the maximum extent practicable, ‘‘(D) use of combined heat and power sys- LIC.—The Administrator shall publish all in- shall be reported electronically to the Ad- tems; formation in the national greenhouse gas ministrator in such form as the Adminis- ‘‘(E) management of cropland, grassland, emissions information system through the trator may require. and grazing land; ‘‘(F) forestry activities that increase car- website of the Environmental Protection ‘‘(C) METHOD OF REPORTING OF ENTITY-WIDE bon stocks; Agency, except in any case in which pub- EMISSIONS.—Under subparagraph (B)(iv), en- lishing the information would reveal a trade tity-wide emissions shall be reported on the ‘‘(G) carbon capture and storage; secret or disclose information vital to na- bases of financial control and equity share in ‘‘(H) methane recovery; and tional security. a manner consistent with the financial re- ‘‘(I) carbon offset investments. ‘‘(d) RELATIONSHIP TO OTHER GREENHOUSE porting practices of the covered entity. ‘‘(c) ADJUSTMENT FACTORS.— GAS REGISTRIES.—To the extent practicable, ‘‘(2) FINAL REPORTING REQUIREMENTS.— ‘‘(1) IN GENERAL.—Each reporting entity the Administrator shall ensure coordination ‘‘(A) IN GENERAL.—Not later than April 30, shall adjust the greenhouse gas emissions between the national greenhouse gas emis- 2004, and each April 30 thereafter (except as record of the reporting entity in accordance sions information system and existing and provided in subparagraph (B)(vii)), in accord- with this subsection. developing Federal, regional, and State ance with this paragraph and the regulations ‘‘(2) SIGNIFICANT STRUCTURAL CHANGES.— greenhouse gas registries. promulgated under section 706(e)(2), each ‘‘(A) IN GENERAL.—A reporting entity that ‘‘(e) INTEGRATION WITH OTHER ENVIRON- covered entity shall submit to the Adminis- experiences a significant structural change MENTAL INFORMATION.—To the extent prac- trator the greenhouse gas report of the cov- in the organization of the reporting entity ticable, the Administrator shall integrate in- ered entity with respect to— (such as a merger, major acquisition, or di- formation in the national greenhouse gas ‘‘(i) the preceding calendar year; and vestiture) shall adjust its greenhouse gas emissions information system with other en- ‘‘(ii) each greenhouse gas emitted by the emissions record for preceding years so as to vironmental information managed by the covered entity in an amount that exceeds maintain year-to-year comparability. Administrator. the applicable threshold quantity. ‘‘(B) MID-YEAR CHANGES.—In the case of a ‘‘SEC. 703. NATIONAL GREENHOUSE GAS REG- ‘‘(B) REQUIRED ELEMENTS.—Each green- reporting entity that experiences a signifi- ISTRY. house gas report submitted under subpara- cant structural change described in subpara- ‘‘(a) ESTABLISHMENT.—In consultation with graph (A) shall include— graph (A) during the middle of a year, the the Secretary of Commerce, the Secretary of ‘‘(i) the required elements specified in greenhouse gas emissions record of the re- Agriculture, the Secretary of Energy, States, paragraph (1); porting entity for preceding years shall be the private sector, and nongovernmental or- ‘‘(ii) estimates of indirect emissions from adjusted on a pro-rata basis. ganizations concerned with establishing imported electricity, heat, and steam; ‘‘(3) CALCULATION CHANGES AND ERRORS.— standards for reporting of greenhouse gas ‘‘(iii) estimates of process emissions de- The greenhouse gas emissions record of a re- emissions, the Administrator shall establish scribed in section 701(5)(B); porting entity for preceding years shall be and administer a national greenhouse gas ‘‘(iv) estimates of fugitive emissions de- adjusted for— registry to collect information reported scribed in section 701(5)(C); ‘‘(A) changes in calculation methodologies; under section 704(b). ‘‘(v) estimates of mobile source emissions or ‘‘(b) AVAILABILITY OF DATA TO THE PUB- described in section 701(5)(D), in such form as ‘‘(B) errors that significantly affect the LIC.—The Administrator shall publish all in- the Administrator may require; quantity of greenhouse gases in the green- formation in the national greenhouse gas ‘‘(vi) in the case of a covered entity that is house gas emissions record. registry through the website of the Environ- a forest product entity, estimates of direct ‘‘(4) ORGANIZATIONAL GROWTH OR DECLINE.— mental Protection Agency, except in any stationary source emissions, including emis- The greenhouse gas emissions record of a re- case in which publishing the information sions resulting from combustion of biomass; porting entity for preceding years shall not would reveal a trade secret or disclose infor- ‘‘(vii) in the case of a covered entity that be adjusted for any organizational growth or mation vital to national security. owns more than 250,000 acres of timberland, decline of the reporting entity such as— ‘‘(c) RELATIONSHIP TO OTHER GREENHOUSE estimates, by State, of the timber and car- ‘‘(A) an increase or decrease in production GAS REGISTRIES.—To the maximum extent bon stocks of the covered entity, which esti- output; feasible and practicable, the Administrator mates shall be updated every 5 years; and ‘‘(B) a change in product mix; shall ensure coordination between the na- ‘‘(viii) a description of any adjustments to ‘‘(C) a plant closure; and tional greenhouse gas registry and existing the greenhouse gas emissions record of the ‘‘(D) the opening of a new plant. and developing Federal, regional, and State covered entity under subsection (c). ‘‘(5) EXPLANATIONS OF ADJUSTMENTS.—A re- greenhouse gas registries. ‘‘(3) ESTABLISHMENT OF THRESHOLD QUAN- porting entity shall explain, in a statement ‘‘(d) INTEGRATION WITH OTHER ENVIRON- TITIES.—For the purpose of reporting under included in the greenhouse gas report of the MENTAL INFORMATION.—To the maximum ex- this subsection, the Administrator shall es- reporting entity for a year—

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00185 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S13958 CONGRESSIONAL RECORD — SENATE December 20, 2001 ‘‘(A) any significant adjustment in the ‘‘(C) a detailed explanation of the method- just proceed without the Administra- greenhouse gas emissions record of the re- ology used in developing the national green- tion. In fact, the Daschle-Bingaman en- porting entity; and house gas emissions inventory; and ergy legislation contains a significant ‘‘(B) any significant change between the ‘‘(2) a detailed analysis of the information climate change title that does just greenhouse gas emissions record for the pre- reported to the national greenhouse gas ceding year and the greenhouse gas emis- emissions information system and the na- that. This subject will contain to re- sions reported for the current year. tional greenhouse gas registry. ceive a great deal of attention in the ‘‘(d) QUANTIFICATION AND VERIFICATION ‘‘SEC. 706. REGULATIONS. Environment and Public Works Com- PROTOCOLS AND TOOLS.— ‘‘(a) IN GENERAL.—The Administrator may mittee and elsewhere as we try to im- ‘‘(1) IN GENERAL.—The Administrator and promulgate such regulations as are nec- plement through statute our existing the Secretary of Commerce, the Secretary of essary to carry out this title. national commitment to reduce green- Agriculture, and the Secretary of Energy ‘‘(b) BEST PRACTICES.—In developing regu- house gas emissions to 1990 levels. shall jointly work with the States, the pri- lations under this section, the Administrator Today, I am joining with Senators vate sector, and nongovernmental organiza- shall seek to leverage leading protocols for CORZINE and LIEBERMAN in introducing tions to develop— the measurement, accounting, reporting, and ‘‘(A) protocols for quantification and verification of greenhouse gas emissions. a bill to amend the Clean Air Act to re- verification of greenhouse gas emissions; ‘‘(c) NATIONAL GREENHOUSE GAS EMISSIONS quire reporting of greenhouse gas emis- ‘‘(B) electronic methods for quantification INFORMATION SYSTEM.—Not later than Janu- sions from major sources and to create and reporting of greenhouse gas emissions; ary 31, 2003, the Administrator shall promul- a voluntary registry for those sources and gate such regulations as are necessary to es- to document their emissions reduction ‘‘(C) greenhouse gas accounting and report- tablish the national greenhouse gas emis- efforts. This new system will be main- ing standards. sions information system. ‘‘(d) NATIONAL GREENHOUSE GAS REG- tained and operated by the Environ- ‘‘(2) BEST PRACTICES.—The protocols and mental Protection Agency, which has methods developed under paragraph (1) shall ISTRY.—Not later than January 31, 2004, the conform, to the maximum extent prac- Administrator shall promulgate such regula- the greatest Federal agency experience ticable, to the best practice protocols that tions as are necessary to establish the na- and capability in monitoring enforcing have the greatest support of experts in the tional greenhouse gas registry. and tracking air emissions. The infor- field. ‘‘(e) MANDATORY REPORTING REQUIRE- mation generated by this system will MENTS.— ‘‘(3) INCORPORATION INTO REGULATIONS.— be of great assistance in developing a ‘‘(1) INITIAL REPORTING REQUIREMENTS.— The Administrator shall incorporate the pro- national trading system in carbon tocols developed under paragraph (1)(A) into Not later than January 31, 2003, the Adminis- trator shall promulgate such regulations as emission credits. The U.S. is a global the regulations promulgated under section leader in the creation and operation of 706. are necessary to implement the initial man- datory reporting requirements under section ‘‘(4) OUTREACH PROGRAM.—The Adminis- such systems and must not lag behind trator, the Secretary of Commerce, the Sec- 704(a)(1). doors in the international community. retary of Agriculture, and the Secretary of ‘‘(2) FINAL REPORTING REQUIREMENTS.—Not We have been waiting some time for Energy shall jointly conduct an outreach later than January 31, 2004, the Adminis- the Administration to make known the program to provide information to all re- trator shall promulgate such regulations as results of its climate change policy re- porting entities and the public on the proto- are necessary to implement the final manda- tory reporting requirements under section view and for a constructive multi-pol- cols and methods developed under this sub- lutant legislative proposal. There is no section. 704(a)(2). ‘‘(f) VOLUNTARY REPORTING PROVISIONS.— question that the terrible events of ‘‘(e) VERIFICATION.— Not later than January 31, 2004, the Adminis- September 11, have had a devastating ‘‘(1) PROVISION OF INFORMATION BY REPORT- trator shall promulgate such regulations and ING ENTITIES.—Each reporting entity shall effect on our citizenry and the govern- issue such guidance as are necessary to im- provide information sufficient for the Ad- ment. But, we are a great nation and plement the voluntary reporting provisions ministrator to verify, in accordance with the Federal Government must be capa- under section 704(b). greenhouse gas accounting and reporting ‘‘(g) ADJUSTMENT FACTORS.—Not later than ble of working on a variety of domestic standards developed under subsection January 31, 2004, the Administrator shall and international fronts, even in the (d)(1)(C), that the greenhouse gas report of promulgate such regulations as are nec- face of great adversity. There are few, the reporting entity— essary to implement the adjustment factors if any, environmental issues more com- ‘‘(A) has been accurately reported; and under section 704(c).’’. pelling than global warming and its ef- ‘‘(B) in the case of each project reduction, represents actual reductions in greenhouse Mr. JEFFORDS. Mr. President, we fects. gas emissions or actual increases in net se- are now near the end of the first ses- As many Senators may recall, Con- questration, as applicable. sion of the 107th Congress. It has been gress and the previous Bush Adminis- ‘‘(2) INDEPENDENT THIRD-PARTY an exceedingly long and difficult year. tration worked together and were very VERIFICATION.—A reporting entity may— There have been many changes, sur- productive during the Gulf War on ‘‘(A) obtain independent third-party prises and tragedies. many pieces of environmental legisla- verification; and One politically significant event that tion, not the least of which was the ‘‘(B) present the results of the third-party particularly dismayed me was the Clean Air Act Amendments of 1990. verification to the Administrator for consid- President’s modification of his cam- That was a different time, but that sit- eration by the Administrator in carrying out paragraph (1). paign pledge to reduce emissions of uation demonstrates that given the ‘‘(f) ENFORCEMENT.—The Administrator four major pollutants, sulfur dioxide, right level of attention and resources, may bring a civil action in United States dis- nitrogen oxides, mercury and carbon we can accomplish a great deal work- trict court against a covered entity that dioxide, emitted by power plants. In ing together even under stressful cir- fails to comply with subsection (a), or a reg- March, he wrote to several Senators cumstances. ulation promulgated under section 706(e), to telling them he would no longer sup- The Administration’s unilateral ap- impose a civil penalty of not more than port mandatory emissions reductions proach to this important subject is $25,000 for each day that the failure to com- for carbon dioxide, an important green- puzzling. The U.S. is responsible for ap- ply continues. house gas. This struck me as a return proximately 25 percent of the total car- ‘‘SEC. 705. NATIONAL GREENHOUSE GAS EMIS- bon loading to the atmosphere. This SIONS INVENTORY. to a 1950s-style energy and environ- ‘‘Not later than April 30, 2002, and each mental policy. man-made pollution is leading to a April 30 thereafter, the Administrator shall On a more optimistic role, however, warming of the entire planet through publish a national greenhouse gas emissions that reversal and the administration’s the greenhouse effect, according to the inventory that includes— unilateral withdrawal and disengage- National Academy of Sciences. Surely, ‘‘(1) comprehensive estimates of the quan- ment from the international negotia- we should do our share to reduce these tity of United States greenhouse gas emis- tions to implement the United Nations emissions to protect our environmental sions for the second preceding calendar year, Framework Convention on Climate and economy, and our global neighbors. including— Change and the Kyoto Protocol has That is the most certain way to pro- ‘‘(A) for each greenhouse gas, an estimate of the quantity of emissions contributed by created more interest and activity on tect our long-term interests and reduce each key source category; this matter than ever on Capitol Hill the impacts of proceeding with busi- ‘‘(B) a detailed analysis of trends in the and in the media. ness as usual. quantity, composition, and sources of United Now, many Members are asking We have asked a great deal of our States greenhouse gas emissions; and themselves whether Congress should friends across the globe as part of our

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00186 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S13959 response to terrorism, particularly of the Department of Energy and various [From the Washington Post, Dec. 17, 2001] our friends in the European Union. We think-tanks. However, we must do NORTHEAST SEEN GETTING BALMIER must not forget that they too have an something soon to stimulate that revo- (By Michael Powell) agenda for the international commu- lution. NEW YORK.—New England’s maple trees nity and that agenda includes con- Providing information on waste gen- stop producing sap. The Long Island and certed action on climate change. Ignor- eration and release into the environ- Cape Cod beaches shrink and shift, and dis- ing that agenda for too long may cre- ment has been a great success of the appear in places. Cases of heatstroke triple. ate unnecessary trade and tariff barrier Toxic Release Inventory. Educating And every 10 years or so, a winter storm problems for U.S. goods and services. the public and the market about waste- floods portions of Lower Manhattan, Jersey ful behavior has stimulated major city and Coney Island with seawater. Already, the pending adoption of the The Northeast of recent historical memory Kyoto Protocol in European Union emissions reductions. The bill we are could disappear this century, replaced by a countries and elsewhere poses, complex introducing today should be similarly hotter and more flood-prone region where accounting and trade issues for U.S. successful in promoting innovation and New York could have the climate of Miami multi-nationals operating in Annex I efficiency in all major carbon emitting and Boston could become as sticky as At- countries. sectors, in addition to preparing the lanta, according to the first comprehensive The Administration’s silence on this appropriate infrastructure for a na- federal studies of the possible effects of glob- clearly growing problem is also puz- tional carbon credit trading system. al warming on the Northeast. zling. The National Oceanic and At- Early in the next session, the Senate ‘‘In the most optimistic projection, we will end up with a six- to nine-degree increase in mospheric and the World Meteorolog- Environment and Public Works Com- mittee will mark up S. 556, the Clean temperature,’’ said George Hurtt, a Univer- ical Organization say that 2001 will be sity of New Hampshire scientist and co-au- the second warmest year on record Power Act, which requires reductions thor of the study on the New England region. since records have been kept in the in greenhouse gas emission from the ‘‘That’s the greatest increase in temperature mid-1800s. Recently, the Washington power generating sector. That sector’s at any time since the last Ice Age.’’ Post reported on the New England Re- emissions have risen approximately 26 Commissioned by Congress, the separate gional Assessment of the Potential percent above 1990 levels and are ex- reports on New England and the New York pected to grow 1.8 percent annually region explore how global warming could af- Consequence of Climate Variability fect the coastline, economy and public and Change. without some Federal action. This is well beyond our international treaty health of the Northeast. The language is The Assessment, which is one of the often technical, the projections reliant on many regional assessments being con- commitments on a sector basis. The middle-of-the-road and sometimes contradic- ducted pursuant to the Global Change majority of those facilities are already tory predictive models. Research Act of 1990, found that the required to report their carbon dioxide But the predications are arresting. Northeast’s climate is likely to become emissions to EPA. New England, where the regional character hotter and more flood-prone. The re- I am hopeful that we can proceed was forged by cold and long, dark winters, gion may see a 6–9 degrees fahrenheit with a tri-partisan, consensual markup could face a balmy future that within 30 to of the Clean Power Act. But, two ele- 40 years could result in increased crop pro- overall temperature increase over the duction but also destroy prominent native next 100 hundreds due to the global ments may preclude our ability to achieve some agreement. First, the Ad- tree species. warming caused by greenhouse gas ‘‘The brilliant reds, oranges and yellows of emissions. This would cause sugar ministration may go forward with pro- the maples, birches and beeches may be re- maples to disappear from Vermont for- posals to modify the New Source Re- placed by the browns and dull greens of ests, threaten coastal areas with rising view, NSR, program. This possibility oaks,’’ the New England report concludes. gravely concerns me and other Mem- sea levels, exacerbate existing air pol- Within 20 years, it says, ‘‘the changes in cli- bers of the Committee, given the lack mate could potentially extirpate the sugar lution problems and harm cold-weath- of transparency in the Administra- maple industry in New England.’’ er-dependent industries like skiing. tion’s proceedings on the pending NSR The reports’ origins date to 1990, when Con- There are varying claims about the gress passed the Global Change Research economic effects related to global enforcement actions and the ‘‘consist- ency’’ review by the Department of Act. Seven years later, the Environmental warming and climate change. Effects Protection Agency appointed 16 regional that will occur beyond the normal eco- Justice. And, second, perhaps more im- panels to examine global warming, and how nomic forecasting period are difficult portantly, there is a distinct lack of the nation might adapt. These Northeast re- constructive engagement with the to determine. But, some studies have ports, completed about two months ago, are Committee on a multi-pollutant bill or suggested that when a doubling of at- among the last to be released. (The mid-At- any clear progress on an Administra- lantic report, which includes Washington, mospheric CO occurs, sometime in the 2 tion proposal. was completed a year go.) next 50–70 years according to most Next year promises to be very busy The scientists on the panels employed con- models, the cost to the U.S. economy in the energy and environmental policy ventional assumptions, such as an annual 1 could be between 0.3 percent–6 percent arena. We cannot afford to simply percent increase in greenhouse gases in the atmosphere. They conclude that global of GDP in 2000 dollars. While the na- recreate the debates that occurred dur- ture of the exact impacts of climate warming is already occurring, noting that, ing the Energy Policy Act of 1992. We on average, the Northeast became two de- change on forestry, construction, hy- know the world to be a much different dropower, and agriculture are disputed, grees warmer in the past century. And they place now and fraught with greater and say that the temperature rise in the 21st cen- most sectors will see losses, according more complex dangers like global tury ‘‘will be significantly larger than in the to studies for the U.S. Environmental warming. It would be irresponsible in 20th century.’’ One widely used climate Protection Agency, Pennsylvania the extreme for Congress or the White model cited in the report predicted a six-de- Academy of Science, Oak Ridge Na- House to take actions that increase, gree increase, the other 10 degrees. tional Laboratory, Massachusetts In- rather than decrease, the likelihood of The Environmental Protection Agency summarizes the findings on its Web site. stitute of Technology, Yale University, those dangers. Pew Center on Global Climate Change, ‘‘Changing regional climate could alter I look forward to working with the forests, crop yields, and water supplies,’’ the and the Institute for International Ec- Administration and my colleagues on a EPA states. ‘‘It could also threaten human onomics. variety of actions to make progress in health, and harm birds, fish, and many types These effects can be lessened by pur- adapting to the climate change we of ecosystems.’’ poseful and strong leadership in the have already caused and on reducing Yale economist Robert O. Mendelsohn is Congress and the White House. We have greenhouse gas emissions to prevent more skeptical. He agrees that mild global the technological ability to revolu- greater future damage that our great- warming seems likely to continue—but ar- tionize our use of fossil fuels through grandchildren will have to face. gues that a slightly hotter climate will make efficiency and process changes, and to I ask unanimous consent to print the the U.S. economy in general, and the North- radically increase our production of re- east in particular, more rather than less pro- article to which I referred in the ductive. A greater risk comes from spending newable energy in all forms. These RECORD. billions of dollars to slow emissions of green- steps can dramatically and cost-effec- There being no objection, the article house gases. tively reduce carbon emissions in the was ordered to be printed in the ‘‘Even in the extreme scenarios, the north- near term, according to studies done by RECORD, as follows: ern United States benefits from global

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00187 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S13960 CONGRESSIONAL RECORD — SENATE December 20, 2001 warming,’’ said Mendelsohn, editor of the Compared with a century ago, the report panies and industries involved in the forthcoming ‘‘Global Warming and the notes, ice melts a week earlier on northern transportation of hazardous materials. American Economy.’’ ‘‘To have New England lakes. Ticks carrying Lyme disease range Upon completion of the assessment, lead the battle against global warming would north of what scientists once assumed was the Secretary will administer a 2-year be deeply ironic, because it will be beneficial their natural habitat. Moist, warm winters Rail Security Fund to assist railroads to our climate and economy.’’ have led to large populations of mosquitoes, The scientists on the Northeastern panels with an accompanying risk of encephalitis and hazardous materials shippers in estimated that Americans have a grace pe- and even malaria. paying the extraordinary costs associ- riod of a decade or two, during which the na- ‘‘The present warming trend has led to an- ated with their post-September 11 ac- tion can adapt before global warming accel- other growing health problem,’’ the report tivities to secure rail infrastructure erates. states, ‘‘in the incidence of red tides, fish and rolling stock. ‘‘We will face an increasingly hazardous kills and bacterial contamination.’’ Among the painful lessons we have local environment in this century,’’ said Wil- Hot, dry summer months, the report con- learned from the sad and alarming liam Solecki, a professor of geography at tinues, ‘‘are ideal for converting automobile Montclair State University in New Jersey events of the past three months, one of exhaust . . . into ozone.’’ Because winds flow the most obvious is that security meas- and a co-author of the climate change report west to east, New England already serves as covering the New York metropolitan region. something of a tailpipe for the nation. The ures for much of our Nation’s transpor- ‘‘We’re in transition right now to something report notes that a study of ozone pollution tation infrastructure needs immediate entirely new and uncertain.’’ and lung capacity found that hikers on improvement. Americans had, for the HEAT ISLAND Mount Washington, New Hampshire’s high- most part, taken for granted that life New York City, the nation’s densest urban est peak, ended their treks in worse condi- in the United States was safe from the center, is armored with heat-retaining con- tion than when they started. senseless violence that occurs all too crete and stone, and so its median tempera- These findings are not definitive. Rising often elsewhere on the planet. When ture hovers five to six degrees above the re- temperatures could exacerbate the effects of terrorists used hijacked airlines as gional norm. The city, the New York report harmful ozone—but anti-pollution laws are missiles against our people, or trans- also cutting emissions. predicts, will grow warmer still. Within 70 formed the mail into a means of years, New York will have as many 90-degree ‘‘There is a little tendency to be alarmist days a year as Miami does now. in global warming studies,’’ Kinney said. spreading illness and death, we awoke If temperatures and ozone levels rise, the ‘‘We could keep ozone in check.’’ in this country to the potential for report says, the poor, the elderly and the A warmer New England could help some harm that exists in the misuse of young—especially those in crowded, poorly economic sectors. As oak and hickory re- things we depend upon every day. ventilated buildings—could suffer more heat- place maples and birch, so commercial for- We depend on few things like we de- stroke and asthma. estry might grow. Shorter winters could pend on our transportation system. I But such problems might have relatively translate into longer growing seasons, lower hope my colleagues in the Senate will fuel bills and less money spent on frost- inexpensive solutions, from subsidizing the agree with me that to adequately pro- purchase of air conditioners to planting trees heaved roads. The foliage and ski industries and painting roofs light colors to reflect would suffer, but lingering autumns could tect our homeland security, it is abso- back heat. bring more tourists and dollars to the coast- lutely necessary that Congress, the ad- ‘‘The experience of southern cities is that al towns of Maine and Massachusetts. ministration, and the various transpor- you can cut deaths and adapt rather easily,’’ ‘‘People complain that we’ll lose the sugar tation industries cooperate on a com- said Patrick Kinney of the Mailman School maple, but 100 years ago, New England was 80 prehensive evaluation and enhance- of Public Health at Columbia University, percent farmland,’’ said Yale economist ment of transportation security. I be- who authored a section of the report. Mendelsohn. ‘‘In fact, an entire landscape lieve we must act soon, and not wait Rising ocean waters present a more com- has shifted in the past 100 years, and most for our ocean-going vessels, our long- plicated threat. The seas around New York people have no idea it was once so different.’’ have risen 15 to 18 inches in the past century, Perhaps—though cold has defined New haul trucks, or our passenger rail sys- and scientists forecast that by 2050, waters England for almost 400 years, and some his- tem to be used as tools of terrorist ag- could rise an additional 10 to 20 inches. torians caution that the cultural shift could gression against our fellow citizens. By 2080, storms with 25-foot surges could prove disorienting. The region reflects its I have offered this legislation today hit New York every three or four years, in- climate; the literature is austere, the houses because the threat to Americans from undating the Hudson River tunnels and stout. For the 19th century naturalists of the a terrorist act against a freight rail- flooding the edges of the financial district, region, a clammy southern heat represented road carrying hazardous materials may causing billions of dollars in damage. moral slackness. be greater than the threats against all ‘‘This clearly is untenable,’’ said Klaus ‘‘Surviving winter has become our self-se- Jacob, a senior research scientist with Co- lecting filter,’’ said Vermont archivist Greg- of those other modes combined. Sev- lumbia University’s Lamont-Doherty Earth ory Sanford. ‘‘What will we brag about if we eral analyses undertaken even before Observatory, who worked on the New York live in a temperate zone and go around in September 11 point to the chemical in- report and is an expert on disaster and urban Hawaiian shirts and sandals?’’ dustry and the railroads that carry the infrastructure. ‘‘A world-class city cannot bulk of its products as likely targets of afford to be exposed to such a threat so By Mr. ROCKEFELLER: terrorism. Our economy, and indeed, often.’’ S. 1871. A bill to direct the Secretary our public health, depend on the move- Jacob recommends constructing dikes and of Transportation to conduct a rail ment of these chemicals. In the days reinforced seawalls in Lower Manhattan, and transportation security risk assess- new construction standards for the lower immediately after September 11, for floors of offices. ment, and for other purposes; to the example, a disruption of rail traffic re- Sea-level rise could reshape the entire Committee on Commerce, Science, and sulted in some major cities having only Northeast coastline, turning the summer re- Transportation a few days’ supply of water-purifying treats of the Hamptons and Cape Cod into Mr. ROCKEFELLER. Mr. President, chlorine at their disposal. It is quite landscapes defined by dikes and houses on it is my pleasure today to introduce obvious, I believe, that we must safe- stilts. Should this come to pass, government the Safe Rails Act of 2001. This bill will would have to decide whether to allow na- guard movement of these life-saving, protect the lives of millions of Ameri- although potentially dangerous, chemi- ture to have its way, or to spend vast sums cans by providing our Nation’s freight of money to replenish beaches and dunes. cals. Complicating the issue is the fact that some railroads and hazardous materials ship- There is legislation before the Senate wealthy coastal communities exclude non- pers with the ability to enhance the se- that would protect the 21 million pas- resident taxpayers from their beaches. curity of hazardous materials shipped sengers Amtrak carries every year. I ‘‘Multimillionaires already are armoring on the Nation’s freight rail network. would encourage all my colleagues to their property with sandbags, but they can’t The Safe Rails Act will require the support this common-sense legislation. do it on their own,’’ said Vivian Gornitz of Department of Transportation to focus Before we enact that legislation and Columbia’s Center for Climate Systems Re- its attention on the significant poten- search, author of the report’s section on sea think we have completed our job, I rise. ‘‘You would be asking taxpayers to pay tial for harm to human health and pub- would just say to my colleagues that for restoring beaches they can never walk lic safety posed by terrorist attacks on the passenger rail traffic in this Nation on, and they might demand access.’’ our Nation’s freight rail infrastructure. covers only about one-sixth of the MILD NEW ENGLAND In performing the risk assessment 140,000 miles in the country’s freight Farther north, global warming could called for in the bill, the Secretary of rail network. change flora and fauna, and perhaps the cul- Transportation will be able to make The freight rail network, which ture itself. use of the expertise of the various com- passes through or near virtually every

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00188 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S13961 small town and large city in the coun- ardous materials transportation along who committed a crime could receive try, carries more than 1.7 million car- the freight rail network, including: parole while another defendant guilty loads, many millions of tons, of chemi- technology for sealing rail cars; tech- of the exact same criminal conduct cals and other hazardous materials niques to transfer hazardous materials could receive literally 20 years in pris- each year. More than 50,000 carloads of from rail cars that are damaged or oth- on. See, e.g., United States Sentencing ‘‘poison by inhalation’’ chemicals, in- erwise represent an unreasonable risk Commission, Guidelines Manual 2 (Nov. cluding chlorine, are transported with- to human life or public safety; systems 2000). in a few miles of a huge percentage of to enhance rail car security on shipper Further, because of the existence of our population. It is not my purpose to property. the parole system, convicts generally alarm my colleagues or the public at Mr. President, the Safe Rails Act is served only one-third of the sentence large. The simple fact is, however, the crucially important legislation for the announced by the judge. Id. There was Safe Rails Act will protect millions of safety and security of our country, and no truth in sentencing. Thus, the old Americans living or working in prox- for the protection of human health all sentencing system lacked uniformity, imity to the facilities manufacturing along our Nation’s rail network. I honesty, and certainty. these hazardous materials, or the thank the chairman of the Commerce In 1984, a bipartisan Congress enacted trains carrying them. Committee for his commitment to and President Reagan signed the Sen- Very briefly, the Safe Rails Act mark this bill up early next year. I tencing Reform Act as part of the Com- would require the Secretary of Trans- strongly urge the leadership of the prehensive Crime Control Act, Pub. L. portation to conduct a comprehensive Senate to schedule consideration of No. 98–473, Title II, 98 Stat. 2019 (1984). analysis of the security risks on our this legislation early in the next ses- The Sentencing Reform Act created entire rail system, with special empha- sion of the 107th Congress, and I en- the Sentencing Commission and in- sis given to a security needs assess- courage my colleagues to support its structed it to promulgate sentencing ment for the transportation of haz- passage. guidelines that would provide more ef- ardous materials. fective, more uniform, and more fair The bill creates a Rail Security By Mr. SESSIONS (for himself sentences. See generally United States Fund, to be administered by the Sec- and Mr. HATCH): Sentencing Commission, Guidelines retary, to reimburse or defray the costs S. 1874. A bill to reduce the disparity Manual 2 (Nov. 2000). As part of this re- of increased or new security measures in punishment between crack and pow- form, Congress abolished the parole taken by railroads, hazardous mate- der cocaine offenses, to more broadly system and substantially reduced good rials shippers, or tank car owners, in focus the punishment for drug offend- behavior adjustments. Id. at 1. the wake of the terrorist attacks on ers on the seriousness of the offense The Sentencing Commission went to September 11. In conducting the re- and the culpability of the offender, and work in studying empirical data on av- quired assessments, the Secretary will for other purposes; to the Committee erage sentences imposed for various consult with and may use materials on the Judiciary. crimes prior to the Sentencing Reform prepared by the railroad, chemical, and Mr. SESSIONS. Mr. President, I send Act. See United States Sentencing tank car leasing industries, as well as to the desk a bill entitled the Drug Commission, Guidelines Manual 9–10 any relevant security analyses or as- Sentencing Reform Act of 2001. This (Nov. 2000). It then made adjustments sessments prepared by Federal or State bill provides a measured and balanced for acceptance of responsibility and law enforcement, public safety, or reg- approach to improving the statutory provision of substantial assistance to ulatory agencies. and guidelines system that governs the the government. Id. at 10. The Secretary will develop criteria sentencing of drug offenders. On April 13, 1987, the Sentencing to determine the appropriateness of This bill makes two important Commission submitted its first set of full or partial reimbursement for var- changes to our Federal sentencing sys- Sentencing Guidelines to Congress. See ious security-related activities. The tem for drug offenders: First, it reduces United States Sentencing Commission, Secretary may consider, but will not be the disparity in sentences for crack Guidelines Manual 1 (Nov. 2000). After limited to, using the Fund to help pay and powder cocaine from a ratio of 100- the prescribed period, the Guidelines for costs incurred due to the following to-1 to 20-to-1. It does so by reducing took effect on November 1, 1987, and security-related activities: unantici- the penalty for crack and increasing applied to all offenses committed on or pated rerouting or switching of trains the penalty for powder cocaine. after that date. Id. at 1. In applying the Guidelines to a par- or cargoes, and the express movement Second, the bill shifts some of the ticular case, a judge must generally: of hazardous materials to address secu- sentencing emphasis from drug quan- 1. Determine the base offense level rity risks; hiring additional manpower tity to the nature of the criminal con- for the offense of conviction; required to increase security of the en- duct, the degree of the defendant’s 2. Apply applicable adjustments for tire rail network, including rail cars on criminality. The bill increases pen- the type of victim, the defendant’s role leased track; the purchase of equip- alties for the worst drug offenders that in the offense, and whether the defend- ment or improved training to enhance use violence and employ women and ant obstructed justice; emergency response in hazardous mate- children as couriers to traffic drugs. 3. Determine the defendant’s crimi- rials transportation incidents; im- The bill decreases mandatory penalties nal history category; and provements in critical communications on those who play only a minimal role 4. Determine the guideline range essential for rail operations and secu- in a drug trafficking offense, such as a based on the defendant’s offense level rity, including: Development and de- girlfriend or child of a drug dealer who and criminal history category. See ployment of global positioning track- receives little compensation. U.S.S.G. § 1B1.1 (2000). ing systems on all tank cars trans- In short, this bill will make meas- After all the factors are considered, porting high hazard materials; and de- ured and balanced improvements in the the judge is required to sentence with- velopment of secure network to provide current sentencing system to ensure a in a narrow range. hazardous materials shippers and tank more just outcome, tougher sentences Thus, the promulgation of the Sen- car owners information regarding cred- on the worst and most violent drug of- tencing Guidelines and the repeal of ible threats to shipments of their prod- fenders and lighter sentences on lower- the parole system promoted uni- ucts or rolling stock; investment in the level, nonviolent offenders. formity, honesty, and certainty in sen- physical hardening of critical railroad To understand the changes that I tencing. infrastructure to enable it to with- propose, it is necessary to review how In 1989, in Mistretta v. United States, stand terrorist attacks; tank car modi- we got to the present system. 488 U.S. 361 (1989), the Supreme Court fications, or storage of additional tank Prior to the promulgation of the Sen- upheld the constitutionality of the cars in excess of the number normally tencing Guidelines in 1984, judges in Sentencing Guidelines. Thus, Federal stored on-site at shippers’ facilities, as the Federal court system had very prosecutors, criminal defense attor- mandated by federal regulators; re- broad discretion to sentence drug of- neys, and Federal judges have been ap- search and development supporting en- fenders. Because judges had different plying the Sentencing Guidelines for hanced safety and security of haz- views on sentencing, one defendant over a decade.

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00189 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S13962 CONGRESSIONAL RECORD — SENATE December 20, 2001 In setting the guideline ranges for Serious Health Threat, Houston Chronicle, This dual approach of locking up re- particular offenses, the Sentencing July 16, 1986. cidivists and reducing drug use drove Commission has to take into account Senator Lawton Chiles of Florida was crime rates down. From 1990 to 1999, any minimum or maximum sentences one of the leaders in the Senate on the the crime index offenses reported by established by Congress. fight against crack. He stated: the FBI, including property crimes and In 1986, Senator Dole introduced on The whole Nation now knows about crack violent crimes, fell to their lowest behalf of the Reagan administration cocaine. They know it can be bought for the level since 1973. See Federal Bureau of the Drug-Free Federal Workplace Act price of a cassette tape, and make people Investigation, Crime in the United of 1986. S. 2849, 99th Cong. 2d Sess. § 502 into slaves. It can turn promising young peo- States—1999 6(2000) (stating that crime ple into robbers and thieves, stealing any- (1986). See United States Sentencing thing they can to get the money to feed their index offenses for 1999 were the lowest Commission, Special Report to Con- habit.—132 Cong. Rec. S 26446, 26447 (1986) since 1973); Federal Bureau of Inves- gress: Cocaine and Federal Sentencing (statement of Sen. Chiles). tigation, Uniform Crime Reports 2000 Policy 117 (1995). That bill proposed Senator Chiles also stated with re- 1(2001), stating that during 2000, crime several mandatory minimum sentences gard to the bill imposing the heavy index offenses remained stable. Thus, for drug trafficking offenses based on penalties on crack, the War on Drugs and the War on the quantity of the drug involved in The Senate bill contained the Democratic Crime that began in the mid and late the offense. three-tiered penalty system which will im- 1980s bore fruit in the 1990s. Under the bill, 500 grams of powder pose mandatory sentences and large fines That the system put in place in the cocaine would have triggered a 5-year against major drug traffickers and king- 1980s produced good results in general, mandatory minimum, while it would pins....I am very pleased that the Senate does not mean that it is perfect. With have taken 25 grams of crack to trigger bill recognizes crack as a distinct and sepa- respect to drug sentencing in par- the same 5-year mandatory minimum. rate drug from [powder] cocaine. . . .—132 ticular, the primary focus of the man- Cong. Rec. S14270–01 (1986) (statement of Sen. This was a 20-to-l ratio of powder to Chiles). datory minimums and the Sentencing crack. Guidelines on quantity has resulted in A principal reason for the 1986 crack Ultimately, Congress passed and a blunt instrument that data now law was to keep crack from spreading President Reagan signed the Omnibus shows is in need of refinement. across America and to keep it out of Anti-Drug Abuse Act of 1986 that set Since the establishment of manda- our neighborhoods, especially minority tough mandatory minimum sentences tory minimums for drug trafficking, neighborhoods. the Bureau of Prisons published a for various quantities of illegal drugs. Congress continued to follow this study on the recidivism of federal pris- Pub. L. No. 99–570, 100 Stat. 3207 (1986). line of reasoning in 1988, when it passed With respect to cocaine, the law was and President Reagan signed into law oners convicted for various offenses. amended to provide that a 5-year man- the Anti-Drug Abuse Act. Pub. L. No. Federal Bureau of Prisons, Recidivism datory minimum sentence would be 100–690, 102 Stat. 4181 (1988). In addition Among Federal Prison Releases in 1987: triggered by trafficking just 5 grams of to the mandatory minimum penalties A Preliminary Report (1994). For those crack cocaine or by trafficking 500 enacted in 1986 for the trafficking in prisoners convicted of general drug grams of powder—a 100-to-1 ratio. 21 crack cocaine and other drugs, this act crimes and released after serving their U.S.C. § 841(b)(1)(B)(ii) & (iii). A 10-year added a mandatory minimum sentence terms, 34.2 percent were rearrested mandatory minimum sentence was im- of 5 years for the simple possession of within 3 years. Id. at 12. For those con- posed for trafficking 50 grams of crack crack cocaine. 21 U.S.C. § 844. victed of firearm and explosive crimes, or 5 kilograms of powder cocaine, again Mandatory minimum sentences at 48.6 percent were rearrested. Id. For a 100-to-1 ratio. 18 U.S.C. the Federal and State levels for various those who committed crimes against § 841(b)(a)(A)(ii) & (iii). crimes have generally been successful. the person, such as robbery or violent Congress, and those of us in the law They have reflected the seriousness assault, 65 percent were rearrested. Id. enforcement field at the time believed with which we as a society take certain Thus, possession of dangerous weapons that there was substantial justification crimes and they have reduced crime by and violence appear to be better indica- for a large differential between crack keeping recidivist criminals off the tors of recidivism than the quantity of and powder cocaine. Because crack was streets for longer periods of time. A drugs possessed or distributed. cheap, addictive, and believed to serve 1982 Rand study reported that some re- The 1986 mandatory minimums based as a catalyst for crime, Congress want- peat offenders committed 232 bur- on the quantity of crack cocaine sold ed to keep it off the streets and out of glaries per year and some committed or possessed, while appropriately re- poor neighborhoods, which were largely 485 thefts per year. See Jan M. Chaiken flecting that drug’s more serious ef- minority neighborhoods. Congress & Marcia R. Chairken, Varieties of fects, failed to keep crack off the sought to accomplish this with stiff Criminal Behavior 44 (Rand 1982). By streets. The use of crack had grown penalties. See United States Sen- locking up these repeat offenders, we rapidly in the early and mid-1980s and tencing Commission, Special Report to could prevent a crime a day in some by 1987 and 1988, crack was available Congress: Cocaine and Federal Sen- cases. across America, including my home tencing Policy 115–21 (1995) (discussing This effort to lock up the worst of- town of Mobile, AL, and small towns legislative reasons for crack and pow- fenders has resulted in a substantial in- all over Alabama. See, e.g., Lloyd D. der cocaine sentences). Congressman crease in Federal and State prison pop- Johnston, et al. Monitoring the Fu- CHARLES RANGEL of New York, stated ulations. In fact, since 1990 our State ture: National Results on Adolescent in 1986: and Federal prison populations have in- Drug Use 16 (Univ. of Mich. 2000) (not- We all know that crack is the newest and creased by a total of 79 percent. See ing that crack use grew rapidly from most insidious addition to the drug culture. Bureau of Justice Statistics, Prisoners 1983–1986); James Coates & Robert Blau, It is cheaper than cocaine, and more addict- in 2000 1 (2001). Big-City Gangs Fuel Growing Crack ive. Young people who experiment with And mandatory minimums did not Crisis, Chicago Tribune, Sept. 13, 1989, crack often become habitual users because of operate alone. We also made progress at C1, noting that crack use began in its highly concentrated narcotic effect. They in reducing drug use, a cause of crime, Fort Wayne, IN, in 1986 and spread rap- become addicts before they know what is down to very low levels. With solid happening.—132 Cong. Rec. H3515–02 (1986) idly through that city. Though the statement of Rep. RANGEL). leadership and antidrug education pro- tough penalties did not stop the geo- grams we drove drug use by young peo- graphical spread of crack, they did, in Congressman RANGEL, who chaired ple down. The University of Michigan’s the Select Committee on Narcotics my opinion, play a role in slowing the Monitoring the Future Study showed Abuse and Control, called drug dealers rate of increase in use that would have that drug use among 12th grade school occurred without the tough penalties. the entrepreneurs of dealing with the sale of children dropped by 76 percent from The mandatory minimums for crack death on the installment plan. (They) have now, in a very sophisticated way, packaged 1986 to 1992. Lloyd D. Johnston, et al. were intended to protect minority crack which allows our younger people for Monitoring the Future: National Re- neighborhoods from the spreading in- smaller amounts of money to become ad- sults on Adolescent Drug Use 14 (Univ. fluence of crack. Still, the tough pen- dicted.—‘‘Crack,’’ Cocaine Derivative, Called of Mich. 2000). alties for crack created the appearance

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00190 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S13963 of racial bias because the distributors United States Sentencing Commission, tencing Commission, which is not a and users of crack are largely African- Special Report to the Congress: Co- ‘‘soft on crime’’ group, and plain fair- American. caine and Federal Sentencing Policy 2 ness, we must act. Congress’ refusal to Parenthetically, let me note that (1997). act, in my view, has been unfortunate. criminal statutes, as they are written, Moreover, in 1995, the Sentencing And in light of our experience, we are not biased, they simply required Commission, most of the members of can conclude that crack sentences are punishment for those who break them which are federal judges, passed two disproportionately severe, why should regardless of race, sex, nationality, or amendments to the Guidelines to re- we not act to improve them? To im- religion. Thus, just because more males duce the disparity in sentences be- prove these guidelines, to fix them commit Federal crimes than females, tween crack and powder cocaine. Spe- where they are broken, is to strengthen it is not unfair or sexist to punish cifically, the amendments would have the system, to reduce judicial manipu- males with all the severity society con- adopted a starting point for the guide- lation, and to restore confidence in the cludes is necessary to stop or reduce lines of equal amounts of crack and system’s fairness. crimes that both sexes commit. See powder cocaine—a 1-to-1 ratio at the We must remember, however, that United States Sentencing Commission, 500-gram level, and would have pro- the goals of the drug sentencing are 2000 Sourcebook of Federal Sentencing vided a sentencing enhancement for vi- still valid today, to save babies from Statistics 15 (Table 5) (reporting that olence and other harms associated with being addicted to the drugs their moth- 85.7 percent of Federal offenders are crack cocaine. See United States Sen- ers take during pregnancy, to save male and 14.3 percent are female). tencing Commission, Cocaine and Fed- teenagers from wasting their youth on Because everyone knows that crack eral Sentencing Policy 1 (1997). Con- drugs that lead to crime, to save young carries heavy penalties, I cannot con- gress, however, passed and President girls from being forced into prostitu- clude that it is discriminatory to pun- Clinton signed a law that rejected the tion to feed a habit, and to save adults ish all who possess or distribute it with amendments and directed the Sen- from wasting their lives on nonproduc- equal severity. My experience does lead tencing Commission to study the issue tive and damaging drugs. me to conclude, however, that where more thoroughly. Pub. L. No. 104–38, I challenge any of you to visit a drug an overwhelming majority of those 109 Stat. 334 (1995). court and look at the defendants before convicted of crack offenses are African- In 1997, the Sentencing Commission and after the drug court program. The American, and the penalties for crack responded with a study entitled, ‘‘Co- transformation from a hopeless crimi- offenses are the most severe, we should caine and Federal Sentencing Policy.’’ nal on drugs to productive citizen off of listen to fair-minded people who argue The study recommended a reduction in drugs will convince anyone of the dan- that these sentences fall too heavily on the crack-powder differential from 100- ger and destructiveness of illegal African-Americans. 1 to approximately 5-to-1. United drugs. One of the facts used in the argument States Sentencing Commission, Co- Does an easing of these tough sen- for changing crack sentences is the caine and Federal Sentencing Policy 9 tences, but not gutting of them, carry percentage of crack defendants that (1997). Specifically, the Commission risks. Some, but not much: are African-American. In 1995, the Sen- recommended to Congress that the 1. Some will say that it represents tencing Commission issued report trigger points for the 5-year mandatory proof that the war against drugs is a showing that of the defendants con- minimum for powder be lowered from failure, but as I just explained, the War victed for crack cocaine offenses, 88.2 500 grams to a range of 125 to 375 grams on Drugs is just as worthy a cause percent were African-American. United and for crack be raised from 5 grams to today as it used to be; States Sentencing Commission, Co- a range of 25 to 75 grams. Id. 2. Some will say that we are less seri- caine and Federal Sentencing Policy Moreover, some judges who did not ous, but a balanced reform will treat 152 (1995). Of the persons sentenced for sit on the Sentencing Commission dangerous crimes more seriously; powder cocaine offenses, 32 percent began speaking out against the crack- 3. Some will say that it may ease a where white, 27.4 percent African- powder differential. See, e.g., Pete bit the pressure a prosecutor can put American, and 37 percent Hispanic, Id. Bowles, Judge Known for Unusual Sen- on a drug dealer to cooperate, but a This generated stories in newspapers, tences, Newsday, May 22, 1998, at A39 balanced approach will retain suffi- like one from the Birmingham Post- (quoting Judge Jack Weinstein as char- cient leverage for a prosecutor to do Herald that reported: acterizing the Sentencing Guidelines his job justly; At first, many of the nation’s black leaders as ‘‘cruel, excessive and unnecessary,’’ 4. Some will say that heavy sen- supported the hard line against drugs. Inner- and saying, ‘‘I simply cannot sentence tences have had some ability to reduce city church ministers decried the crack epi- another impoverished person whose de- distribution, but of course, after a demic that seemed to blaze through their struction has no discernible effect on modest decrease the penalties will re- neighborhoods. But as the disparities in jail the drug trade’’). And some have said main tough. sentences became increasingly obvious, sup- that judges may have used downward After thoughtful review, and consid- port for the policy dried up among many blacks. . . .’’—Thomas Hargrove, Drug’s Form departures more often than they eration in light of my own experience Influences Length of Sentence, Birmingham should have to reduce drug sentences in prosecuting drug offense, I have con- Post-Herald, Nov. 17, 1997, at A1, A9 (describ- to a level that they view as more just. cluded that we must reform the just- ing differences in punishments for crack and Indeed, Professors Frank Bowman and ness of our means to match the legit- powder cocaine). Michael Heise, citing a downward trend imacy of our goals. We must restore As data from the Sentencing Com- in drug sentences have stated, ‘‘a per- justness to sentencing for crack traf- mission became available during the vasive disposition toward discretionary ficking and other drug crimes which mid-1990s, many federal and state offi- evasion of Guideline and statutory law will maintain public confidence in the cials, including myself, began to doubt has important implications for the on- federal government’s anti-drug efforts whether the 100-to-1 ratio between pow- going struggle among the courts, the and make those efforts more rational der and crack cocaine continued to be Justice Department, the Congress, and and justifiable. justifiable. the Sentencing Commission for control Today, I propose a bill to make two We in the public service asked our- of sentencing policy.’’ See Frank O. modest changes to the current sen- selves: ‘‘If in light of our experience, Bowman III & Michael Heise, Quiet Re- tencing system: we can conclude that crack sentences bellion? Explaining Nearly a Decade of First, the bill will reduce the crack- are disproportionately severe, why Declining Federal Drug Sentences, 86 powder sentencing disparity from the should we not act to improve them?’’ Iowa L. Rev. 1043, 1049–50 (2001). current 100-to-1 ratio to a 20-to-1 In 1995 and 1997, the Sentencing Com- To date, however, Congress has de- ratio—the same ratio proposed by the mission unanimously concluded that clined to address the issue. Many say it Reagan Administration in 1986. This the crack-powder disparity was no is because of a fear of being called bill would trigger the 5-year manda- longer justified. See United States Sen- ‘‘soft on crime.’’ Regardless, we can tory minimum sentence for trafficking tencing Commission, Cocaine and Fed- wait no longer. Based on our experi- at 20 grams of crack—not 5 grams—and eral Sentencing Policy 198–200 (1995); ence, the strong position of the Sen- at 400 grams of powder cocaine—not 500

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00191 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S13964 CONGRESSIONAL RECORD — SENATE December 20, 2001 grams. The 10-year mandatory min- but retains a reasonable distinction, a lines. This is very significant because imum would be triggered by trafficking 20-to-1 ratio, between crack and pow- couriers, who are often low-level par- 200 grams of crack and by trafficking 4 der. ticipants in a drug organization, can kilograms of powder. The bill also reduces the 5-year man- have disproportionate sentences of 20 The reduction in the amount of pow- datory minimum penalty for the sim- or 30 years simply because they are der cocaine required to trigger the ple possession of 5 grams of crack to caught with a large amount of drugs in mandatory minimum from 500 grams to just 1 year. This reflects that crack is their possession. By capping the im- 400 grams reflects that 400 grams is al- a more serious drug than most other pact of drug quantity on the minimal most a pound of cocaine—a large drugs, but that the sentence need not role offenders, the bill allows a greater amount—worth well over $10,000. Also, be unjustifiably harsh. role for the criminality, or lack of this increase in the penalty for powder Second, the bill increases emphasis criminality, of their conduct in deter- cocaine reflects that powder cocaine is on defendant’s criminality, as opposed mining their ultimate sentence. imported and used as the raw material to a heavy emphasis on the quantity of For example, the bill provides a de- used to make crack. United States Sen- drug involved. This bill requires a sen- crease for the super-mitigating factor tencing Commission, Special Report: tencing enhancement for violence or of the girlfriend or child who plays a Cocaine and Federal Sentencing Policy possession of a firearm, or other dan- minimal role in the offense. These are vi (1995). Finally, the increased penalty gerous weapon, associated with a drug often the most abused victims of the responds to the powder cocaine use trafficking offense. This reflects that drug trade, and we should not punish rates among high school students. use of a dangerous weapon or violent them as harshly as the drug dealer who According to the University of Michi- action results in higher recidivism used them. gan Study entitled Monitoring the Fu- rates than drug use along. See Federal Existing adjustments could then be ture, powder cocaine use among 12th Bureau of Prisons, Recidivism Among made for factors such as the role in the grade students had risen by 61.3 percent Federal Prison Releases in 1987: A Pre- offense, acceptance of responsibility, from 1992 to 2000, although there was a liminary Report 12 (1994). and provision of substantial assistance slight decline from 1999 to 2000. Fur- Further, the bill requires an addi- to the government. ther, more than twice as many 12th tional enhancement if the defendant is The bill also establishes a 3-year grade students used powder cocaine an organizer, leader, manager, or su- pilot program for placing elderly, non- than crack in 1992 and in 2000. pervisor in the drug trafficking offense violent prisoners in home detention in and a ‘‘superaggravating’’ factor ap- lieu of prison. It allows the Attorney 12TH GRADERS DRUG USE plies. Superaggravating factors include General to designate 1 or more Federal [In percent] using a girlfriend or child to distribute prisons at which prisoners who meet drugs, maintaining a crack house, dis- the following criteria could be placed Drug 1992 2000 Change tributing a drugs to minor, an elderly in home detention. Powder ...... 3.1 5.0 61.3 person, or a pregnant woman, bribing a The prisoner: 1. is at least 65 years Crack ...... 1.5 2.2 46.7 Percent Greater ...... 106.7 127.2 law enforcement official, importing old; 2. has served the greater of 10 drugs in the United States from a for- years or one-half of his sentence; 3. has See Lloyd D. Johnston, Monitoring eign country, or committing the drug never committed a Federal or State the Future: National Results on Ado- offense as a part of a pattern of crimi- crime of violence; 4. is not determined lescent Drug Use 14 (Univ. of Mich. nal conduct engaging in as a livelihood. by the Bureau of Prisons to have a his- 2000) (Table 2). These sentencing enhancements will tory of violence or to have committed We need to discourage those who are apply to offenses involving cocaine, a violent infraction while in prison; dealing powder cocaine to our high methamphetamines, marijuana, and all and 5. has not escaped or attempted to school students and those who are pro- illegal drugs. escape. viding a supply market of powder co- Aside from the girlfriend factor, My experience tells me, that elderly caine that enable the manufacture of many of the superaggravating factors prisoners who are nonviolent and who crack. This bill does this by providing are already available in certain cases. have served a substantial amount of a small increase in the penalty for pow- The bill would employ these punish- their sentence generally pose no threat der cocaine. ments in drug cases as sentencing en- to the community. Removing them The bill’s decrease in the penalty for hancements, instead of statutory pen- from prison and placing them in home crack reflects that a principal reason alties, thus allowing a Federal pros- detention could save the federal gov- for creating the much more severe sen- ecutor to obtain the tougher penalty ernment money and free up space to tence on crack, to prevent the spread by proving the superaggravating crimi- house the most dangerous criminals. of crack use, has failed. Crack is used nal conduct by a preponderance of the The bill, however, would require an throughout America. evidence rather than beyond a reason- independent study on recidivism and The bill’s approach of narrowing, but able doubt. Further, the bill will make cost savings. At the end of 3 years, not eliminating, the sentencing dis- some enhancements easier to establish. Congress could decide whether to con- parity between crack and powder co- For example instead of proving that a tinue or expand the pilot program. caine by changing the penalties for victim had a particular vulnerability There are those on the Left of the po- both drugs parallels the 1997 Sen- to a crime, a prosecutor could simply litical spectrum who want to substan- tencing Commission recommendation show that the victim was 16 years old. tially restrict or even repeal manda- of increasing penalties and decreasing The offenders to which these sen- tory minimums for some drug offenders penalties on crack. United States Sen- tencing enhancements apply are the and oppose all drug penalty increases. I tencing Commission, Special Report to most culpable members of the drug firmly disagree with such an approach. Congress: Federal Sentencing Policy 9 trade that prey on young women, The Sentencing Guidelines and manda- (1997). Further, it is consistent with the school children, and the elderly, and tory minimum statutes have been a bipartisan Act of Congress that Presi- bring violence into our neighborhoods. critical component of a criminal jus- dent Clinton signed in 1995 rejecting Their sentences should reflect the tice system that treats equal conduct the Sentencing Commission’s attempt criminality of their conduct, not sim- equally. It increases deterrence be- to equalize the penalties for crack and ply the quantity of drugs with which cause criminals know they will not be powder cocaine. That act stated, ‘‘the they are caught. able to talk themselves out of jail. It is sentence imposed for trafficking in a While providing sentencing increases a great system. By following the bal- quantity of crack cocaine should gen- for the worst offenders, the bill limits anced approach that I have proposed, erally exceed the sentence imposed for the impact of mandatory minimums on we improve the guidelines and improve trafficking a like quantity of powder the least dangerous offenders. The bill sentencing. My goal is to have our sen- cocaine.’’ Pub. L. No. 104–38, 104th caps the drug quantity portion of a tencing system consistently impose the Cong. 1st Sess. § 2(a)(1)(A) (1995). The sentence for a defendant who plays a right sentence to incapacitate, deter, bill changes the penalties for crack and minimal role at 10 years, base offense punish, and rehabilitate the criminal. powder to reduce the 100-to-1 disparity, level 32 under the Sentencing Guide- Because Congress has set the rules, we

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00192 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S13965 must act to improve them. The courts problem without undermining our ef- most comprehensive policies were un- cannot do it for us. forts to pursue relentlessly those who able, given the unique circumstances of There are those on the Right side of make their living peddling these poi- the time, to ensure that all victims’ as- the political spectrum, however, who sons. At the same time that we reduce sets were restituted.’’ do not want to decrease any drug pen- the crack-powder sentence ratio from I believe this Foundation will provide alty whatsoever. While I respect their 100 to 1 to 20 to 1 and reduce sentences a focal point for work between Federal view, I can not embrace it. The manda- for girlfriends and children who play and State governments to cross-match tory minimums have been in effect truly minimal roles in drug crimes, we property records with lists of Holo- since 1986 and the Sentencing Guide- increase sentences for those who play caust victims. It will work with the lines have been in effect since 1987. We leadership roles in trafficking organi- museum community to further stimu- are not in a position to reflect on what zations. The bill also increases sen- late provenance research into Euro- the effects have been. tences for those who use firearms or vi- pean paintings and Judaica. It will pro- As we have seen from experience, the olence in carrying out their drug mote and monitor the implementation 100-to-1 disparity in sentencing be- crimes. by major banking institutions of the tween crack cocaine and power co- As a former federal prosecutor, agreement developed in conjunction caine, which falls the hardest on Afri- United States Attorney, and Attorney with the New York Bankers Associa- can-Americans, is not justifiable. See, General of Alabama, Senator SESSIONS tion. Finally, it will work with the pri- e.g., 145 Cong. Rec. S. 14452–14453 (1999), is uniquely qualified to lead the Senate vate sector to develop and promote (statement of Sen. SESSIONS,to-1 ratio on this issue. Since at least 1998, he has common standards and best practices is a movement in the right direction,’’ done just that. Both in the Judiciary for research on Holocaust-era assets. but questioning whether solely increas- Committee and on the floor of the Sen- I look forward to working with my ing penalties on crack was justifiable). ate, Senator SESSIONS has worked tire- colleagues in creating this Foundation It is simply unjust. lessly to bring about a more just sen- to finish the work of the Holocaust As- Further, the focus of the drug sen- tencing structure for cocaine offenses. sets Commission. I urge all my col- tencing system on quantity of drugs, This legislation represents the right leagues to co-sponsor this important which has sent the girlfriends of drug approach, and it deserves the support legislation that will solve restitution dealers, who act as mere couriers, to of all of my colleagues. issues and engender needed research on prison for long terms, should be ad- By Mrs. CLINTON (for herself, Holocaust assets in the United States. justed to increase the emphasis on the Mr. SMITH of Oregon, Mr. STE- criminality of conduct. This will free VENS, Mr. SPECTER, Mrs. BOXER, By Mr. HARKIN: up prison space for violent drug offend- Mr. FITZGERALD, Mr. SCHUMER, S. 1877. A bill to clarify and reaffirm ers. a cause of action and Federal court ju- Trust me on this. The federal drug and Mr. DODD): S. 1876. A bill to establish a National risdiction for certain claims against sentences are tough. In practice—as Foundation for the Study of Holocaust the Government of Iran; to the Com- they play out in actual time served, Assets; to the Committee on Banking, mittee on Foreign Relations. they are tougher than any State drug Housing, and Urban Affairs. Mr. HARKIN. Mr. President, we all sentences that I know of. This legisla- Mr. SMITH of Oregon. Mr. President, remember the dark days of the Iran tion will in no way change the serious- I am proud to introduce with Senator hostage crisis between 1979 and 1981. ness with which drugs are taken. CLINTON, the Holocaust Victims’ Assets Fifty-two Americans were taken hos- Please know that I will resist with all Restitution Policy and Remembrance tage in the U.S. Embassy in Tehran the force I can muster any attempt to Act. This legislation will create a pub- and held in captivity by the Ayatollah destroy or undermine the integrity or lic/private Foundation dedicated to Khomeini and his followers for the en- effectiveness of the Sentencing Guide- educating and to completing the nec- suing 444 days in the newly-established lines. This bill simply targets the essary research in the area of Holo- Islamic Republic of Iran. They were toughest sentences to those who de- caust-era assets and restitution policy brutalized by their captors and the serve it most. pain and suffering of these brave Amer- The Drug Sentencing Reform Act of and to promote innovative solutions to icans and their families throughout 2001 takes a measured and balanced ap- restitution issues. The Foundation is that ordeal cannot be over-estimated. proach to modifying the sentencing authorized for ten years at a cost of A constituent of mine, Ms. Kathryn system that we have used for over a $100 million, after which it will sunset Koob, from Waverly, IA, is one of two decade. By increasing penalties on the and ‘‘spin off’’ its research results and women former hostages who endured worst offenders and decreasing pen- materials to private entities. It is able this nightmarish experience. Last De- alties on the least dangerous offenders, to accept private funds as well as pub- we will increase the focus of our law lic dollars. cember, she joined the other 51 Amer- enforcement resources on the drug The need for the Foundation comes ican heroes taken hostage and their traffickers that endanger our families from the work of the Presidential Advi- families in filing a lawsuit in the Fed- and decrease the focus on those defend- sory Commission on Holocaust Assets eral District Court of the District of ants who pose less danger. in the United States. I was proud to Columbia seeking redress of this griev- I commend this bill to my colleagues have served as a Commissioner along ous miscarriage of justice and payment to study and debate. I challenge them with several of my colleagues in the by the Government of Iran for the dam- to cast aside the politics of the Left Senate. The Commission identified a ages and injuries they incurred. If and the Right and to support this bill number of policy initiatives that re- these plaintiffs are successful, the Fed- on the merits as a matter of plain, sim- quire U.S. leadership, including: fur- eral courts could order payment from ple justice. ther research and review of Holocaust- Iranian cash and assets still frozen in Mr. HATCH. Mr. President, I rise era assets in the United States and the United States. today to speak briefly on the legisla- world-wide; providing for the dissemi- Incredibly, the U.S. Justice and tion that my good friend from the nation of information about restitution State Departments in mid-October and, State of Alabama, Senator SESSIONS, programs; creating a simple mecha- at the latest possible hour, intervened has introduced today. That legislation, nism to assist claimants in obtaining in this case, Roeder v. the Islamic Repub- the ‘‘Drug Sentencing Reform Act of resolution of claims; and, supporting a lic of Iran, seeking to vacate the Fed- 2001,’’ addresses the disparity between modern database of Holocaust victims’ eral judge’s default judgment in favor sentences handed down to those who claims for the restitution of personal of the former hostages and their fami- traffic in power cocaine and those who property. lies and to have this lawsuit dismissed traffic in crack cocaine. I am proud to The Commission determined that altogether. De facto the Bush Adminis- cosponsor this bill, and I hope that we ‘‘our government performed in an un- tration is siding with the Government can promptly act on it when we return precedented and exemplary manner in of Iran and against our own people who next year. attempting to ensure the restitution of were taken hostage and treated so cru- This legislation provides a balanced assets to victims of the Holocaust. elly during the Embassy takeover. How and measured solution to the disparity However, even the best intentioned and could this be, especially when we are

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00193 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S13966 CONGRESSIONAL RECORD — SENATE December 20, 2001 united as a Nation in a war against ter- functioned as little more than a ran- (3) IMMEDIATE RELATIVE.—The term ‘‘im- rorism and the U.S. State Department som pact with kidnappers acting in the mediate relative’’ means, with respect to a itself continues to document and de- name and under the sponsorship of the former Iranian hostage, the parent, spouse, clare the Government of Iran as the Government of Iran. son, or daughter of the former Iranian hos- tage. Last week, the Federal judge hearing number one state sponsor of terrorism (4) PERIOD OF CAPTIVITY IN IRAN.—The term in the world today? this case expressed a reluctance to ‘‘period of captivity in Iran’’ means the pe- The Government of Iran has never make a final judgment and to order the riod beginning on November 4, 1979, and end- had to pay one cent to any of the Government of Iran to pay damages ing on January 20, 1981. Americans taken hostage or their fami- unless the Congress takes further legis- (d) EFFECTIVE DATE.—This section shall lies. If U.S. Justice and State Depart- lative action to clearly and irrefutably apply to— ment attorneys get their way, the Gov- abrogate the Algiers Accords insofar as (1) any action brought before the date of ernment of Iran will never have to pay enactment of this Act and being maintained necessary to allow the Americans held on such date; and anything and the hostages and their hostage and their families to sue in (2) any action brought on or after the date families will never be given their day federal court and recover damages of enactment of this Act. in Federal court to pursue justice and from the Government of Iran. The next be awarded compensation. court proceeding is this unresolved By Mrs. HUTCHISON (for herself That is why I am today introducing matter has been scheduled for January and Mr. BINGAMAN): legislation, The Justice for Former 14. S. 1878. A bill to establish programs U.S. Hostages in Iran Act, to prevent I appeal to my colleagues on both to address the health care needs of resi- this grave injustice from being com- sides of the aisle to co-sponsor this leg- dents of the United States-Mexico Bor- pounded. My bill would reaffirm the islation with a sense of urgency and der Area, and for other purposes; to the clear intent of this Congress expressed fairness. Unless the Congress acts Committee on Health, Education, in four prior enactments and make promptly to reaffirm and clarify our Labor, and Pensions. crystal clear that this group of hos- prior enactments, the U.S. Justice and Mrs. HUTCHISON. Mr. President, I tages and their families have the right State Departments will block the only rise today to introduce the U.S./Mexico to pursue their Federal lawsuit to its path still open to the hostages and Border Health Improvement Act. The issue of public health along the U.S./ rightful conclusion and to be eligible their families to pursue justice, to get Mexico Border is as vast and varied as to receive compensatory damage a federal court judgment against the the 2000-mile Border itself. With the awards from the Government of Iran, Government of Iran for its brutal and enactment of the NAFTA agreement, should the Federal courts so determine criminal misconduct, and to require on the merits. and the tremendous growth in popu- this on-going state sponsor of inter- lation in the region, the Border rep- The position of the U.S. Justice and national terrorism to pay for the pain, State Departments, contrary to the resents, for both countries, the area of suffering and injuries they inflicted on both greatest potential and enormous claims and interests of the American Kathryn Koob and these other coura- hostages and their families, is that the challenge. From San Yisidro to geous Americans. Brownsville, and from Tijuana to Mat- U.S. Government must honor a little- I ask unanimous consent that the amoros, over 10 million people call the known executive agreement called the text of the bill be printed in the Border region home. At the same time, Algiers Accords that Presidents Carter RECORD. the U.S. Border population is growing and Reagan entered into in January, There being no objection, the bill was three times as fast as the rest of the 1981 in order to get our hostages re- ordered to be printed in the RECORD, as Nation’s, and the population of Mexi- leased from captivity inside Iran. The follows: co’s border cities is expected to double Algiers Accords, among other provi- S. 1877 over the next decade. For this reason, I sions, required the U.S. to immediately Be it enacted by the Senate and House of Rep- am pleased to be joined by Senator transfer to Iran through resentatives of the United States of America in BINGAMAN to offer legislation on the Algeria $7.9 billion in frozen assets in Congress assembled, critical issue of improving U.S./Mexico exchange for the freedom of our people. SECTION 1. FEDERAL COURT JURISDICTION OF Border Health. But also buried in the fine print of the CERTAIN CLAIMS AGAINST THE GOV- The Border region is like a ‘‘top ten’’ Algiers Accords is one very specific ERNMENT OF IRAN. (a) CAUSE OF ACTION.—Notwithstanding the list of substandard living conditions: provision which singularly strips the the highest poverty rate; the lowest hostages and their families of their Algiers Accords, any other international agreement, or any other provision of law, a education rate; highest unemployment; rights and flatly prohibits any of them former Iranian hostage or immediate rel- worst environmental degradation; and from ever being able to sue the Govern- ative thereof shall have a cause of action for the worst record for all major public ment of Iran and make that regime pay money damages against the Government of health indicators. for their pain and suffering. Ironically, Iran for the hostage taking and any death, The statistics are mind-numbing, but under the terms of the Algiers Accords, disability, or other injury (including pain it is the sad reality of the human suf- U.S. companies can take the Iranians and suffering and financial loss) to the fering and of the individuals, families, former Iranian hostage resulting from the before an international tribunal at The and communities behind those numbers Hague and recover damages for their former Iranian hostage’s period of captivity in Iran. that is so heart wrenching. Diabetes, lost property, but the Americans actu- (b) JURISDICTION OF THE FEDERAL COURTS.— HIV, hepatitis, tuberculosis, and birth ally taken hostage and their families Notwithstanding the Algiers Accords, any defects all remain disproportionately alone, are prohibited from doing the other international agreement, or any other and unacceptably high. Meanwhile, same. This is patently unfair to those provision of law, no United States court childhood immunizations, screenings, American heroes and their families shall decline to hear or determine on the health education, and the ratio of who suffered the most from this hellish merits a claim under subsection (a) against health care providers to the general the Government of Iran. experience. population all remain unacceptably The Algiers Accords is not a treaty. (c) DEFINITIONS.—In this section: (1) ALGIERS ACCORDS.—The term ‘‘Algiers low. It was never submitted to the Senate Accords’’ means the Declarations of the Gov- This legislation that I offer today for ratification for obvious reasons. It ernment of the Democratic and Popular Re- provides for a comprehensive border is a shabby executive agreement that public of Algeria concerning commitments health program to address this woeful was negotiated under extreme duress and settlement of claims by the United situation that includes the creation of and entered into between the executive States and Iran with respect to resolution of an office of Border Health within branch of our government and the Gov- the crisis arising out of the detention of 52 Health and Human Services, authoriza- ernment of Iran because the Govern- United States nationals in Iran, with Under- tions for community health centers, ment of Iran, at that time, was daily takings and Escrow Agreement, done at Al- giers January 19, 1981. and dental outreach programs. This threatening otherwise to put all of our (2) FORMER IRANIAN HOSTAGE.—The term bill also directs the Secretary of hostages on trial in Iran as ‘‘spies’’ and ‘‘former Iranian hostage’’ means any United Health and Human Services to recruit to execute them. In fact, the Algiers States personnel held hostage in Iran during and retain quality members of the Na- Accords, from their inception, have the period of captivity in Iran. tional Health Service Corps for service

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00194 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S13967 in the border region, while requesting (8) Due to the poor living conditions in the (e) AUTHORIZATION OF APPROPRIATIONS.— authorization for the recruitment, colonias, the United States-Mexico Border There is authorized to be appropriated to training and retaining of bilingual Area has a much higher rate of waterborne carry out this section, such sums as may be health professionals, ‘‘promotor(a)s.’’ infectious diseases. The occurrence of hepa- necessary. titis A, for example, is 3 times the national As a member of the United States SEC. 5. UNITED STATES-MEXICO BORDER AREA rate, and the occurrence of salmonella and ENVIRONMENTAL HEALTH PRO- Senate, I have worked very hard to im- shigella dysentery occur is 2 to 4 times the GRAM. prove the health of Border residents in national rate. (a) IN GENERAL.—The Secretary shall the short term, but more important, to SEC. 3. DEFINITIONS. award grants to eligible entities as deter- putting in place the infrastructure and In this Act: mined by the Secretary to establish environ- institutions necessary to ensure a (1) UNITED STATES-MEXICO BORDER AREA.— mental health hazard programs for the good, healthful life for our Nation’s The term ‘‘United States-Mexico Border United States-Mexico Border Area. people well into the twenty-first cen- Area’’ means the area located in the United (b) PRIORITY.—In awarding grants under States within 100 kilometers of the border this section, the Secretary shall give pri- tury. ority to eligible entities that propose to es- I commend the Senator from New between the United States and Mexico. (2) SECRETARY.—The term ‘‘Secretary’’ tablish and carry out programs that address Mexico for his support on this issue, means the Secretary of Health and Human environmental health hazards in the United and I urge other Senators to join us in Services. States-Mexico Border Area for pregnant this effort. SEC. 4. OFFICE OF BORDER HEALTH. women and children. (c) DUTIES.—An eligible entity that re- I ask unanimous consent the bill be (a) IN GENERAL.—There is established with- ceives a grant under this section, shall use printed in the RECORD. in the Department of Health and Human funds received through such grant to— There being no objection, the bill was Services an Office of Border Health (referred (1) establish an environmental health pro- ordered to be printed in the RECORD, as to in this section as the ‘‘Office’’). gram that addresses health hazards along (b) DIRECTOR.—The Secretary shall appoint follows: the United States-Mexico Border Area; S. 1878 a Director of the Office to administer and oversee the functions of such Office. (2) identify and eliminate environmental health hazards; Be it enacted by the Senate and House of Rep- (c) AUTHORITY.—In overseeing the Office, resentatives of the United States of America in the Secretary, acting through the Director— (3) coordinate its program with any envi- Congress assembled, (1) shall be responsible for the overall di- ronmental health programs, if applicable, SECTION 1. SHORT TITLE. rection of the Office and for the establish- administered by the Environmental Protec- This Act may be cited as the ‘‘United ment and implementation of general policies tion Agency, the National Institute of Envi- States/Mexico Border Health Improvement respecting the management and operation of ronmental Health Sciences, the Inter- Act of 2001’’. programs and activities of the Office; national Consortium for the Environment SEC. 2. FINDINGS. (2) shall establish programs and activities (ICE), other relevant Federal, State, and Congress makes the following findings: to study and monitor border health service local agencies, and nongovernmental organi- (1) The United States-Mexico Border Area delivery in general, the coordination of Fed- zations; is the area located in the United States with- eral and State and Federal and local border (4) recruit and train health professionals in 100 kilometers of the border between the health activities, the health education avail- and environmental health specialists to United States and Mexico. able for border residents, existing outreach identify and address environmental health (2) In the United States, the United States- for residents and the success of such out- hazards in the United States-Mexico Border Mexico Border Area encompasses 46 counties reach, health service activities, particularly Area; or in California, Arizona, New Mexico, and prevention, and early intervention activi- (5) support State and local public health, Texas. ties, and any other activity that the Sec- food safety, and building inspection agencies (3) Presently, the United States-Mexico retary determines is appropriate to improve to reduce environmental health hazards, in- Border Area is experiencing explosive popu- the health of United States-Mexico Border cluding hazards existing in or around private lation growth. In the United States, this re- Area residents, including the health of Na- residences in the United States-Mexico Bor- gion currently has 11,500,000 residents. How- tive American tribes located within the pri- der Area. ever, this number is expected to exceed mary Area; (d) AUTHORIZATION OF APPROPRIATIONS.— 22,000,000 by the year 2025. The population of (3) shall review Federal public health pro- There is authorized to be appropriated to the region in Mexico is growing at an ever grams and identify opportunities for collabo- carry out this section, such sums as may be faster rate. In total, the population of the ration with other Federal, State, and local necessary. communities in both countries is expected to efforts to address border health issues; SEC. 6. COMMUNITY HEALTH CENTERS. double between the years 2020 and 2025. (4) shall coordinate activities with the Part D of the Public Health Service Act (42 (4) With 11,500,000 residents and a 2,000-mile United States-Mexico Border Health Com- U.S.C. 254b et seq.) is amended by adding at expanse, the United States-Mexico Border mission and State offices; the end the following: Area has the population and size of a State (5) shall award grants to States, local gov- ‘‘SEC. 330I. UNITED STATES-MEXICO BORDER of the United States. If the region was such ernments, nonprofit organizations, or other AREA GRANTS. a State, it would rank— eligible entities as determined by the Sec- ‘‘(a) IN GENERAL.—The Secretary shall (A) last in access to health care; retary, in the United States-Mexico border award grants to eligible entities as deter- (B) second in death rates (due to hepatitis); area to address priorities and recommenda- mined by the Secretary to establish commu- (C) third in deaths related to diabetes; tions established by— nity health centers in medically underserved (D) first in the number of tuberculosis (A) the United States-Mexico Border areas of the United States-Mexico Border cases; Health Commission on a binational basis, in- Area. (E) first in schoolchildren living in pov- cluding the Healthy Border 2010 Program Ob- ‘‘(b) DEFINITIONS.—The term ‘‘United erty; and jectives; and States-Mexico Border Area’’ means the area (F) last in per capita income. (B) the Director, to improve the health of located in the United States within 100 kilo- (5) In addition to the specific health prob- border region residents; meters of the border between the United lems listed in paragraph (5), hundreds of (6) shall award grants to programs that States and Mexico. thousands of Area residents also each day seek to improve the health care of Area resi- ‘‘(c) DUTIES.—An eligible entity that re- face increased health risks due to being ex- dents, with priority given to applicants such ceives a grant under this section shall estab- posed to the polluted water, soil, and air of as the Health Resources and Services Admin- lish and fund community health centers in the region. istration and other applicants that seek to medically underserved areas of the United (6) Every county in the United States-Mex- provide telemedicine and telehealth services; States-Mexico Border Area, and as des- ico Border Area in the United States has at and ignated by the Secretary. least a partial health professional shortage (7) shall collaborate with appropriate coun- ‘‘(d) APPLICATION.—An eligible entity de- area designation. Twenty-five percent of terparts in Mexico to coordinate actions and siring a grant under this section shall sub- such counties have severe shortages and lack programs to improve health for residents of mit an application at such time, in such adequate primary care physicians. The the United States-Mexico border area. manner, and containing such information as shortage of dentists is also severe in many (d) REPORT.—Not later than 1 year after the Secretary may reasonably require. Area localities. the date of enactment of this section, the ‘‘(e) AUTHORIZATION OF APPROPRIATIONS.— (7) According to GAO, the United States- Secretary shall prepare and submit to the There is authorized to be appropriated to Mexico Border Area contains hundreds of appropriate committees of Congress a report carry out this section, such sums as may be colonias. Colonias are substandard develop- describing Federal health programs’ limita- necessary.’’. ments that typically lack running water, tions in addressing United States-Mexico SEC. 7. NATIONAL HEALTH SERVICE CORPS. sewerage systems, and electricity. Many of Border Area health concerns and recom- Subpart II of the Public Health Service Act the residents of colonias are migrant farm- mending solutions to better address such (42 U.S.C. 254d et seq.) is amended by adding worker families. concerns. at the end the following:

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00195 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S13968 CONGRESSIONAL RECORD — SENATE December 20, 2001 ‘‘SEC. 339. UNITED STATES-MEXICO BORDER formation dissemination network of the to gather and retain data and other informa- HEALTH SERVICE CORPS. Health Services and Resources Administra- tion on the health of United States-Mexico ‘‘(a) IN GENERAL.—The Secretary shall es- tion. Border Area residents and on past, present, tablish a loan repayment program and re- (b) AUTHORIZATION OF APPROPRIATIONS.— and emerging health issues in such Area. cruit National Health Service Corps mem- There is authorized to be appropriated to (b) CONTENT.—The Databank shall include bers to provide health services for United carry out this section, such sums as may be an Epidemiological Information System that States-Mexico Border Area residents in ex- necessary. shall be linked, where feasible, to all rel- change for participation in such program. SEC. 10. PREVENTION AND TREATMENT OF HIV/ evant State and local health agencies and ‘‘(b) PREFERENCE.—In selecting Corps AIDS. other relevant national and international members to participate, the Secretary shall (a) PROGRAM AUTHORIZED.—The Secretary health organizations. give preference to pediatricians and pedi- shall carry out a study to review agency ac- (c) AVAILABILITY OF DATA.—All informa- atric specialists who are fluent in English tivities regarding reducing the spread of tion gathered and retained by the Databank and Spanish, and to applicants who agree to HIV/Aids affecting the residents in the shall, where practicable, be made available serve along the United States-Mexico Border United States-Mexico Border Area. for the public via the Internet. The Centers Health Area for at least 2 years. (b) COORDINATIONS.—In carrying out such for Disease Control and Prevention shall ‘‘(c) PROGRAM.— study, the Secretary shall coordinate activi- publish no less than quarterly a publication ‘‘(1) IN GENERAL.—The Secretary shall es- ties with the appropriate Federal and State reporting on activities, studies, and trends tablish a loan repayment program described agencies and with appropriate agencies in regarding United States-Mexico Border Area in subsection (a). Mexico to develop early intervention and health issues, including, the resources avail- ‘‘(2) CONTRACT.—Under such program, the treatment efforts to curb the spread of HIV/ able from the Databank. Secretary shall enter into written agree- AIDS. (d) AUTHORIZATION OF APPROPRIATIONS.— ments with individuals selected by the Sec- (c) AUTHORIZATION OF APPROPRIATIONS.— There is authorized to be appropriated to retary to provide the health services de- There is authorized to be appropriated to carry out this section, such sums as may be scribed in subsection (a) in exchange for the carry out this section, such sums as may be necessary. Secretary providing payment for the indi- necessary. SEC. 15. CENTER FOR DISEASE CONTROL PRE- vidual for the principal, interest, and related SEC. 11. PREVENTION AND TREATMENT OF TU- VENTION. expenses on government and commercial BERCULOSIS. (a) PROGRAM AUTHORIZED.—There is estab- loans received by the individual regarding (a) PROGRAM AUTHORIZED.—The Secretary lished within the Centers for Disease Control the graduate or undergraduate education of shall carry out a study to review agency ac- and Prevention a Border Health Surveillance the individual (or both). tivities regarding reducing the spread of tu- Network (referred to in this section as the ‘‘(3) PAYMENT FOR YEARS SERVED.—For berculosis, particularly multi-drug resistant ‘‘Network’’). every 2 years of service that an individual tuberculosis, affecting the residents in the (b) DUTIES.—The Network shall— contracts to serve under this section the United States-Mexico Border Area. (1) carry out activities to develop and elec- Secretary may pay for 1 year of educational (b) COORDINATION.—In carrying out such tronically link the health surveillance, as- expenses, including tuition, living expenses, study, the Secretary shall coordinate activi- sessment, and response capabilities of the and any other such reasonable educational ties with the Immigration and Naturaliza- Centers for Disease Control and Prevention expenses. tion Service and other appropriate Federal and all border State and local health agen- ‘‘(d) UNITED STATES-MEXICO BORDER and State agencies and with appropriate cies; and AREA.—The term ‘‘United States-Mexico agencies in Mexico to develop diagnosis, de- (2) award grants to State and local public Border Area’’ means the area located in the tection, and early intervention and treat- health agencies, medical schools, schools of United States within 100 kilometers of the ment efforts to curb the spread of tuber- public health, Border Health Education border between the United States and Mex- culosis, particularly multi-drug resistant tu- Training Centers, or other entities as deter- ico. berculosis. mined by the Secretary located in or serving ‘‘(e) AUTHORIZATION OF APPROPRIATIONS.— (c) AUTHORIZATION OF APPROPRIATIONS.— the United States-Mexico Border Area for There is authorized to be appropriated to There is authorized to be appropriated to the development of border health epidemi- carry out this section, such sums as may be carry out this section, such sums as may be ology training programs and to build upon necessary.’’. necessary. the existing Health Alert Network, the Infor- SEC. 8. PROMOTOR(A) GRANT PROGRAMS. SEC. 12. CHILDREN’S HEALTH INSURANCE PRO- mation Network for Public Health Officials, (a) PROGRAM AUTHORIZED.—The Secretary GRAM. the Border Infectious Disease Surveillance shall award grants to eligible entities to es- The Secretary shall establish a targeted (‘‘BIDS’’) Project, and a Noncommunicable tablish promotor(a) programs to recruit, campaign of public education and awareness Disease Surveillance System. train, and retain bilingual lay health advis- in the United States-Mexico Border Area (c) AUTHORIZATION OF APPROPRIATIONS.— ers to provide culturally appropriate health that is culturally relevant to the residents of There is authorized to be appropriated to education and other services for medically that Area. carry out this section, such sums as may be underserved populations in the United SEC. 13. INTERVENTION AND TREATMENT necessary. States-Mexico Border Area. GRANTS. SEC. 16. BORDER AREA BREAST AND CERVICAL (b) DEFINITION.—The term ‘‘eligible entity’’ (a) PROGRAM AUTHORIZED.—The Secretary CANCER SCREENING. means a school of public health, an academic shall award grants to eligible entities as de- Section 1501 of the Public Health Service health sciences center, a Federally qualified termined by the Secretary to carry out Act (42 U.S.C. 300k) is amended by adding at health center, a public health agency, a bor- intervention and treatment programs for di- the end the following: der health office, or a border health edu- abetes. ‘‘(e) SPECIAL CONSIDERATION FOR BORDER cation training center or any other entity (b) USE OF FUNDS.—An entity that receives AREA RESIDENTS.—In making grants under determined by the Secretary that is located a grant under this section shall use funds re- subsection (a), the Secretary shall set-aside in or that serves the United States-Mexico ceived through such grant to— certain funds described in give special con- Border Area. (1) develop intervention programs oriented sideration to any State that proposes to in- (c) DUTIES.—An eligible entity that re- towards increasing access to diabetes health crease the number of United States-Mexico ceives a grant under this section shall, in ad- care; Border Area residents who are screened for dition to the duties described in subsection (2) increase venues and opportunities for breast and cervical cancer.’’. (a), develop bilingual promotor(a) and other physical activity and exercise in the border SEC. 17. GRANTS FOR BORDER AREA HEALTH border-specific health training programs. area; TESTING. (d) APPLICATION.—An eligible entity desir- (3) address obesity as a risk factor for dia- (a) IN GENERAL.—The Director of the Cen- ing a grant under this section, shall submit betes, especially in juvenile populations; ters for Disease Control and Prevention shall an application to the Secretary at such time, (4) improve health choices in school nutri- award grants to United States-Mexico Bor- in such manner, and containing such infor- tion; and der Area State and local health agencies to mation as the Secretary may reasonably re- (5) develop diabetes networks and coali- upgrade public health laboratories and con- quire. tions to encourage communities to address duct rapid tests for disease organisms and (e) AUTHORIZATION OF APPROPRIATIONS.— diabetes risk factors. toxic chemicals. There is authorized to be appropriated to (c) AUTHORIZATION OF APPROPRIATIONS.— (b) COORDINATION.—A State or local health carry out this section, such sums as may be There is authorized to be appropriated to agency that receives a grant under this sec- necessary. carry out this section, such sums as may be tion shall, to the extent possible, coordinate SEC. 9. GRANTS FOR DISTANCE LEARNING. necessary. its activities carried out with funds received (a) PROGRAM AUTHORIZED.—The Secretary SEC. 14. CENTERS FOR DISEASE CONTROL AND under this section with activities carried out shall award grants to United States-Mexico PREVENTION. under programs administered by the Na- Border Area State and local health agencies, (a) PROGRAM AUTHORIZED.—The Centers for tional Laboratory Training Network. community health centers, and other appro- Disease Control and Prevention shall estab- (c) APPLICATION.—A State or local health priate organizations to fully participate in lish a National Border Health Databank (re- agency desiring a grant under this section the provider education distance learning/in- ferred to in this section as the ‘‘Databank’’) shall submit an application to the Director

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00196 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S13969 at such time, in such manner, and con- Health of the Centers for Disease Control who receive the benefits of optimally fluori- taining such information as the Director and Prevention, may make grants to South- dated water. may reasonably require. western border States or localities for the (d) AUTHORIZATION OF APPROPRIATIONS.— (d) AUTHORIZATION OF APPROPRIATIONS.— purpose of increasing the resources available There is authorized to be appropriated to There is authorized to be appropriated to for community water fluoridation. carry out this section, such sums as may be carry out this section, such sums as may be (b) USE OF FUNDS.—A State or locality necessary. necessary. shall use amounts provided under a grant SEC. 23. COMMUNITY-BASED DENTAL SEALANT SEC. 18. HEALTH PROMOTION ACTIVITIES. under subsection (a)— PROGRAM. (a) IN GENERAL.—The Secretary shall es- (1) to purchase fluoridation equipment; (a) IN GENERAL.—The Secretary, acting tablish new, comprehensive guidelines for (2) to train fluoridation engineers; or through the Director of the Maternal and community- and family-oriented prevention (3) to develop educational materials on the Child Health Bureau of the Health Resources and health promotion activities focused on advantages of fluoridation. and Services Administration, may award Guidelines under The Healthy Border 2010 (c) AUTHORIZATION OF APPROPRIATIONS.— grants to eligible entities determined by the Guidelines. The Director shall disseminate There is authorized to be appropriated to Secretary to provide for the development of these guidelines in both English and Spanish carry out this section, such sums as may be innovative programs utilizing mobile van to all United States-Mexico Border Area necessary. units to carry out dental sealant activities health professionals, utilizing all available to improve the access of children to sealants tools, including the CDC Prevention Guide- SEC. 22. COMMUNITY WATER FLUORIDATION. (a) IN GENERAL.—The Secretary, acting as well as for prevention and primary care. lines Database. (b) USE OF FUNDS.—An entity shall use (b) AUTHORIZATION OF APPROPRIATIONS.— through the Director of the U.S. Mexico Bor- der Health Commission and the Director of amounts received under a grant under sub- There is authorized to be appropriated to section (a) to provide funds to eligible com- carry out this section, such sums as may be the Centers for Disease Control and Preven- tion, shall establish a demonstration project munity-based entities to make available a necessary. mobile van unit to provide children in second SEC. 19. GENERAL ACCOUNTING OFFICE. that is designed to assist rural water sys- tems in Texas, New Mexico, Arizona and or sixth grade with access to dental care and (a) PROGRAM AUTHORIZED.—The General dental sealant services. Such services may Accounting Office shall conduct a com- California in successfully implementing the Centers for Disease Control and Prevention be provided by dental hygienists so long as a prehensive study of Federal and Federal and formalized plan for the referral of a child for State border health programs. water fluoridation guidelines entitled ‘‘Engi- treatment of dental problems is established. (b) CONTENT.—The study described in sub- neering and Administrative Recommenda- (c) ELIGIBILITY.—To be eligible to receive section (a) shall review border health care tions for Water Fluoridation’’ (referred to in funds under this section an entity shall— programs to determine the manner in which this section as the ‘‘EARWF’’). (1) prepare and submit to the Secretary an such programs may be improved. Such study (b) REQUIREMENTS.— application at such time, in such manner and shall also review any problematic limita- (1) COLLABORATION.—The Director of the containing such information as the Sec- tions of medicare and medicaid programs in U.S. Mexico Border Health Commission shall retary may require; and serving United States-Mexico Border Area collaborate with the Director of the Centers (2) be a community-based entity that is de- residents. for Disease Control and Prevention in devel- termined by the Secretary to provide an ap- (c) REPORT.—Not later than 1 year after oping the project under subsection (a). propriate entry point for children into the the date of enactment of this section, the Through such collaboration the Directors dental care system and be located within 100 General Accounting Office shall prepare and shall ensure that technical assistance and kilometers of the United States Mexico Bor- submit to Congress a report describing the training are provided to sites located in each der. findings of the study described in subsection of the 4 States referred to in subsection (a). (d) COORDINATION WITH OTHER PROGRAMS.— (a) and recommending certain courses of ac- The Director of the U.S. Mexico Border tion to improve such border health care pro- An entity that receives funds from a State Health Commission shall provide coordina- under this section shall serve as an enroll- grams, with particular emphasis on rec- tion and administrative support to tribes ommendations for improving Federal and ment site for purposes of enabling individ- under this section. uals to enroll in the State plan under title State and Federal and local coordinations. (2) GENERAL USE OF FUNDS.—Amounts made Such report shall also make recommenda- XIX of the Social Security Act (42 U.S.C. 1396 available under this section shall be used to et seq.) or in the State Children’s Health In- tions for changes with regard to medicare assist small water systems in improving the and medicaid payment laws and policies for surance Program under title XXI of such Act effectiveness of water fluoridation and to (42 U.S.C. 1397aa et seq.). telemedicine and telehealth activities. meet the recommendations of the EARWF. (d) AUTHORIZATION OF APPROPRIATIONS.— (e) AUTHORIZATION OF APPROPRIATIONS.— (3) FLUORIDATION SPECIALISTS.— There is authorized to be appropriated to There is authorized to be appropriated to (A) IN GENERAL.—In carrying out this sec- carry out this section, such sums as may be carry out this section, such sums as may be tion, the Secretary shall provide for the es- necessary. necessary. tablishment of fluoridation specialist engi- SEC. 24. UNITED STATES HISPANIC NUTRITION SEC. 20. AGENCY FOR HEALTH CARE RESEARCH neering positions in each of the Dental Clin- AND QUALITY. EDUCATION AND RESEARCH CEN- ical and Preventive Support Centers through (a) IN GENERAL.—The Agency for Health TER. Care Research and Quality shall conduct a which technical assistance and training will (a) ESTABLISHMENT.—The Secretary shall comprehensive study of border health needs, be provided to tribal water operators. establish a United States Hispanic Nutrition trends, and areas of needed improvement and (B) CDC.—The Director of the Centers for Education and Research Center (referred to shall utilize border academic institutes to Disease Control and Prevention shall appoint in this section as the ‘‘Center’’) at a regional carry out such study and share the results of individuals to serve as the fluoridation spe- academic health center. such study with such institutes. cialists. (b) PURPOSE.—The general purpose of the (b) CONTENT.—The study described in sub- (4) IMPLEMENTATION.—The project estab- Center shall be to undertake nutrition re- section (a) shall study the health needs of lished under this section shall be planned, search and nutrition education activities United States-Mexico Border Area residents implemented and evaluated over the 5-year that sustain and promote the health of and— period beginning on the date on which funds United States Hispanics, particularly those (1) residents’ access to health care services; are appropriated under this section and shall United States Hispanics in the United (2) communicable disease control in the be designed to serve as a model for improv- States-Mexico Border Area. The Center shall Area; ing the effectiveness of water fluoridation serve as a national clearinghouse for re- (3) environmental problems in the Area systems of small rural communities. search, and for data collection and informa- that contribute to health care problems; (c) EVALUATION.—In conducting the ongo- tion dissemination on nutrition in the (4) health research being done on residents’ ing evaluation as provided for in subsection United States Hispanic population. In addi- health care needs; (b)(4), the Secretary shall ensure that such tion, the Center shall serve as an educational (5) make recommendations regarding envi- evaluation includes— resource on United States Hispanic nutrition ronmental improvements that may be made (1) the measurement of changes in water for students, universities, and academic and to improve health conditions of Area resi- fluoridation compliance levels resulting research institutions throughout the United dents; and from assistance provided under this section; States. (6) make recommendations regarding long (2) the identification of the administrative, range plans to improve the quality and avail- technical and operational challenges that By Mr. MURKOWSKI (for himself ability of health care of Area residents. are unique to the fluoridation of small water and Mr. STEVENS): (c) AUTHORIZATION OF APPROPRIATIONS.— systems; S. 1879. A bill to resolve the claims of There is authorized to be appropriated to (3) the development of a practical model Cook Inlet Region, Inc., to lands adja- that may be easily utilized by other tribal, carry out this section, such sums as may be cent to the Russian River in the State necessary. State, county or local governments in im- of Alaska; to the Committee on Energy SEC. 21. GRANTS TO INCREASE RESOURCES FOR proving the quality of water fluoridation COMMUNITY WATER FLUORIDATION. with emphasis on small water systems; and and Natural Resources. (a) IN GENERAL.—The Secretary, acting (4) the measurement of any increased per- Mr. MURKOWSKI. Mr. President, I through the Director of the Division of Oral centage of Southwestern border residents am pleased today to introduce the

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00197 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S13970 CONGRESSIONAL RECORD — SENATE December 20, 2001 ‘‘Russian River Land Act’’. The pur- Now is the time for decisive action billion over a decade. The United pose of this legislation is to ratify an by Congress and by the administration States should be the lead financial con- agreement that settles a land owner- to demonstrate to the people of Af- tributor to the rehabilitation and re- ship issue at the Russian River on the ghanistan and throughout the Muslim construction effort in Afghanistan, and Kenai Peninsula in Alaska between the world that the war against the al-Qaida we believe should contribute as much U.S. Forest Service, the U.S. Fish and and the Taliban was neither a war as $5 billion to this effort over the next Wildlife Service, and Cook Inlet Re- against Muslims, nor against ordinary 5 years. gion, Inc., CIRI, an Alaska Native Cor- Afghans. The United States has led the The reconstruction effort must focus poration. effort to eliminate the terrorist net- on education, particularly for girls, The legislation ratifies an agreement work in Afghanistan, and now it must which has proven to give the greatest reached between CIRI and the agencies lead the peace effort by helping the Af- return for each assistance dollar. Cre- after three years of negotiations and it ghan people reclaim their country and ation of secular schools will help break covers the lands at the confluence of rebuild their lives. the stranglehold of extremism and the Kenai and Russian Rivers in Alas- The United States did not live up to allow both boys and girls to make posi- ka. its commitment to the Afghan people tive contributions to the development The area surrounding the confluence after the Soviets were defeated in the of their society. The effort must also of the Russian and Kenai Rivers is rich 1980s. I regret to say we walked away. focus on rebuilding basic infrastruc- in archaeological cultural features. It If we break or commitment again, Af- ture, repairing shattered bridges and is also the site of perhaps the most ghanistan is likely to remain an iso- roads, removing land mines, recon- heavily used public sports fishery in lated incubator of terrorist activities, structing irrigation systems and drill- Alaska. Because of the archaeological and regional instability will continue. ing wells. We must also rebuild the resources at Russian River, Cook Inlet We would not now be focused on Af- health infrastructure by establishing Region, Inc., made selections at Rus- ghanistan had the events of September basic hospitals and village clinics. Over the past few months, I have held sian River under the section of the 11 not occurred. Those horrific events a series of hearings in the Senate For- Alaska Native Claims Settlement Act have driven home the truth that the eign Relations Committee’s Sub- that allowed for selections of historical indivisibility of human security is not committee on Near Eastern and South places and cemetery sites. The lands at just an empty slogan, but a fact, which Asia Affairs regarding the humani- the confluence are managed in part by we ignore at our peril. the U.S. Forest Service and in part by The causes of the Afghan tragedy in- tarian and reconstruction needs of Af- the U.S. Fish and Wildlife Service. clude nearly all the horrors that stalk ghanistan. Based on these hearings, I Seeking to protect the public’s access failed states: meddling and invasion by am convinced we must help the Afghan people live in a society where they can to the sport fishery at Russian River, neighboring states, internecine warfare feed their children, live in safety and the two federal agencies and Cook Inlet leading to a takeover by brutal fanat- participate fully in their country’s de- Region, Inc., reached an agreement ics, oppression of a majority of the pop- velopment regardless of gender, reli- that requires the Federal legislation in ulation, especially women and, finally, order to become effective. Because this gious belief or ethnicity. the Taliban’s fateful decision to host agreement provides for continuing The Afghan Freedom and Recon- international terrorists. struction Act of 2001 does just that. ownership and management by the two The cures for Afghanistan’s agony Federal agencies of the vast majority That bill: are less obvious, but one is clear. The Expresses a sense of Congress on the of lands at Russian River, the public’s rival political and ethnic groups must right to continue fishing remains un- U.S. policy towards Afghanistan, in- take advantage of the historic oppor- cluding promoting its independence, changed from its current status. tunity that emerged in Bonn and make I congratulate the U.S. Forest Serv- supporting a broad-based, multi-ethnic, a genuine commitment to the peaceful ice, the Fish and Wildlife Service and gender-inclusive, fully representative sharing of power. They must establish CIRI for finding a way to fulfill the in- government, and maintaining a signifi- a government broad and effective tent of the Alaska Native Claims Set- cant U.S. commitment to the relief, re- tlement Act in a way that fully pro- enough to meet the basic needs of the habilitation and reconstruction of Af- tects the interests of the public. I also people. The same narrow-minded fac- ghanistan. congratulate all three parties on reach- tionalism that originally left the coun- Authorizes $400 million for humani- ing final accord on the longstanding try vulnerable to backward mullahs, tarian assistance to Afghanistan in fis- unresolved issue of land ownership at greedy warlords and predatory neigh- cal year 03, including $75m for refugee Russian River. bors continues to pose a threat to the assistance and $175m for food aid. country now. Authorizes such sums as may be nec- By Mr. WELLSTONE: One other thing is clear: the United essary for a multinational security S. 1880. A bill to provide assistance States must lead the international force in Afghanistan, in fiscal year 02 for the relief and reconstruction of Af- community in moving quickly and de- and fiscal year 03. ghanistan, and for other purposes; to cisively in a long-term commitment to Authorizes $1.175 billion for rehabili- the Committee on Foreign Relations. the reconstruction of Afghanistan. The tation and reconstruction assistance Mr. WELLSTONE. Mr. President, I people of Afghanistan have endured 23 for fiscal years 2002–2006, to be distrib- am introducing the Afghanistan Free- years of war and misery. The conflict uted by USAID, with conditions for dom and Reconstruction Act of 2001. has threatened international stability each year to ensure that benchmarks This legislation is a comprehensive and placed enormous burdens on the laid out in the December 5, 2001, Bonn framework for U.S. bilateral and multi- people’s limited means. The Bush ad- Agreement between the various Afghan lateral assistance for the humanitarian ministration has said that it will not factions are being met; assistance for relief and long-term reconstruction and let Afghanistan descend into chaos. agriculture, health care, education, vo- rehabilitation of Afghanistan. It is a But, talk is not enough. We must act cational training, disarmament and de- companion to H.R. 3427, introduced by by committing significant resources. mobilization, and anticorruption and Representatives LANTOS and ACKERMAN We must show Afghans that our com- good governance programs; a special in the House. mitments are not hollow. We must emphasis on assistance to women and The last pockets of Taliban resist- show genuine solidarity and real gen- girls; a report on assistance actually ance are being routed, and the new in- erosity now. provided; and authority to provide terim administration of Afghanistan is It is time to reverse more than a dec- some of this assistance through a mul- set to assume power in Kabul in 2 days. ade of neglect. The United States, in tilateral fund and/or international Freedom is returning to Afghanistan. partnership with the international foundation. Its men and women are listening to community, must be willing to make a Authorizes the President to furnish music again and women are leaving multi-year, multinational effort to re- such sums as may be necessary to fi- their homes unescorted, cautiously op- build Afghanistan. Current estimates nance a multilateral fund or inter- timistic about their future after endur- of the cost of assisting Afghanistan national foundation, to assist in secu- ing years of repressive rule. range from $5 billion over 5 years to $40 rity, rehabilitation, and reconstruction

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00198 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S13971 efforts in Afghanistan, as described ida, Georgia, Idaho, Kentucky, Mis- article or service that is purchased, leased, above. souri, New York, North Carolina, Or- exchanged, or received primarily for per- Authorizes $60 million for Democracy egon, and Tennessee, have enacted sonal, family, or household purposes, includ- and human rights initiatives for FY02 ing stocks, bonds, mutual funds, annuities, similar laws. and other financial products. through FY04. States are taking this action because (6) MARKETING OR SALES SOLICITATION.— Authorizes $62.5 for a contribution to a 1994 Federal law to curb unsolicited (A) IN GENERAL.—The term ‘‘marketing or the U.N. Drug Control Program for telemarketing, while a good beginning, sales solicitation’’ means the initiation of a FY02 through FY04 to reduce or elimi- has not fully succeeded in protecting telephone call or message to encourage the nate the trafficking of illicit drugs in families’ privacy. In fact, individual purchase of, rental of, or investment in, Afghanistan. consumers must keep track of every property, goods, or services, that is trans- Authorizes $65 million for a new se- telemarketer they have contacted to mitted to a person. cure diplomatic facility in Afghani- determine if a solicitation call was (B) EXCEPTION.—The term does not include a call or message— stan. made in violation. There are numerous (i) to a person with the prior express invi- The legislation’s message is simple: exemptions to the Federal law, as well, tation or permission of that person; the United States is not only a great as because there are no penalties for (ii) by a tax-exempt nonprofit organiza- Nation, but a generous Nation. We calls made in ‘‘error,’’ it has proved dif- tion; keep our word, and stand ready to ficult to enforce. (iii) on behalf of a political candidate or match our words with our actions. We Direct Marketing Association mem- political party; or must not turn our backs again on the bers do not oppose the Connecticut (iv) to promote the success or defeat of a people of Afghanistan. law. It is their belief that consumers referendum question. (7) STATE.—The term ‘‘State’’ means each placing their name on a list would By Mr. DODD (for himself and of the several States of the United States never buy a product from a tele- and the District of Columbia. Mr. MILLER): marketer anyway, and thus the list (8) TELEPHONE SALES CALL.— S. 1881. A bill to require the Federal saves telemarketers time and re- (A) IN GENERAL.—The term ‘‘telephone Trade Commission to establish a list of sources. sales call’’ means a call made by a telephone consumers who request not to receive Our legislation would take much of solicitor to a consumer for the purpose of— telephone sales calls; to the Committee the burden off of consumers. At the (i) engaging in a marketing or sales solici- on Commerce, Science and Transpor- same time, a comprehensive and uni- tation; tation. versal law actually could help tele- (ii) soliciting an extension of credit for consumer goods or services; or Mr. DODD. Mr. President, today I am marketers by streamlining the process. introducing legislation along with my (iii) obtaining information that will or The legislation we are introducing may be used for the direct marketing or friend and colleague from Georgia, today would require the Federal Trade sales solicitation or exchange of or extension Senator MILLER, to help individuals Commission to establish a ‘‘no sales so- of credit for consumer goods or services. whose personal time is interrupted by licitation calls’’ listing of consumers (B) EXCEPTION.—The term does not include the constant annoyance of telephone who do not wish to receive unsolicited a call made— solicitors. Our bill, modeled after a calls. Although certain types of calls (i) in response to an express request of the Connecticut statute, would require the would be exempt, including calls from person called; or (ii) primarily in connection with an exist- Federal Trade Commission to establish any company with whom a consumer a ‘‘no-call’’ list of consumers who do ing debt or contract, payment, or perform- currently does business, non-profits ance that has not been completed at the not wish to receive unsolicited tele- looking for donations, pollsters, and time of the call. marketing calls. those publishing telephone directories, (9) TELEPHONE SOLICITOR.—The term ‘‘tele- A Department of Labor survey re- a violation of the ‘‘no call’’ list would phone solicitor’’ means an individual, asso- ports that 84 percent of Americans be deemed an unfair or deceptive trade ciation, corporation, partnership, limited would trade income for more free time. practice and the telemarketer could be partnership, limited liability company or People want to spend more time in the fined. other business entity, or a subsidiary or af- filiate thereof, that does business in the evening with their families, whether it I urge my colleagues to cosponsor be sitting down to dinner together, re- United States and makes or causes to be this important consumer legislation made a telephone sales call. laxing in front of the television, help- and I ask that the bill be printed in the SEC. 3. FEDERAL TRADE COMMISSION NO CALL ing children with homework, or catch- RECORD. LIST. ing up with household chores. I suspect I think the chair and ask unanimous (a) IN GENERAL.—The Commission shall— most people do not want to be incon- consent that the text of the bill be (1) establish and maintain a list for each venienced with intrusive, unsolicited printed in the RECORD. State, of consumers who request not to re- telemarketing calls during the evening There being no objection, the bill was ceive telephone sales calls; and or anytime throughout the day. (2) provide notice to consumers of the es- ordered to be printed in the RECORD, as tablishment of the lists. Telemarketing revenue increased follows: (b) STATE CONTRACT.—The Commission from $492.3 billion in 1998 to $585.9 bil- S. 1881 may contract with a State to establish and lion in 2000, which translates into mil- Be it enacted by the Senate and House of Rep- maintain the lists. lions of phone calls every year. While resentatives of the United States of America in (c) PRIVATE CONTRACT.—The Commission many sales pitches are made on behalf Congress assembled, may contract with a private vendor to estab- lish and maintain the lists if the private ven- of legitimate organizations and busi- SECTION 1. SHORT TITLE. dor has maintained a national listing of con- nesses, consumers still lose more than This Act may be cited as the ‘‘Tele- sumers who request not to receive telephone $40 billion a year to fraudulent sales of marketing Intrusive Practices Act of 2001’’. sales calls, for not less than 2 years, or is goods and services over the telephone. SEC. 2. DEFINITIONS. otherwise determined by the Commission to It is time to empower consumers with In this Act: be qualified. the ability to stop most unsolicited (1) CALLER IDENTIFICATION SERVICE OR DE- (d) CONSUMER RESPONSIBILITY.— calls, legitimate or otherwise, from en- VICE.—The term ‘‘caller identification serv- (1) INCLUSION ON LIST.—Except as provided ice or device’’ means a telephone service or in subsection (d)(2), a consumer who wishes tering their homes and disturbing their device that permits a consumer to see the to be included on a list established under lives. telephone number of an incoming call. subsection (a) shall notify the Commission In Connecticut, people now have the (2) CHAIRMAN.—The term ‘‘Chairman’’ in such manner as the Chairman may pre- right to place their name on a ‘‘do not means the Chairman of the Federal Trade scribe to maximize the consumer’s oppor- call’’ list and more than 225,000 house- Commission. tunity to be included on that list. holds have contacted the Department (3) COMMISSION.—The term ‘‘Commission’’ (2) DELETION FROM LIST.—Information on Consumer Protection to take advan- means the Federal Trade Commission. about a consumer shall be deleted from a list tage of the new law. All telemarketers (4) CONSUMER.—The term ‘‘consumer’’ upon the written request of the consumer. means an individual who is an actual or pro- (e) UPDATE.—The Commission shall— are required to consult that list and spective purchaser, lessee, or recipient of (1) update the lists maintained by the Com- are prohibited from contacting house- consumer goods or services. mission not less than quarterly with infor- holds on the list. Other states, includ- (5) CONSUMER GOODS OR SERVICES.—The mation the Commission receives from con- ing Alabama, Alaska, Arkansas, Flor- term ‘‘consumer good or service’’ means an sumers; and

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00199 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S13972 CONGRESSIONAL RECORD — SENATE December 20, 2001 (2) annually request a no call list from (2) notice requirements for a consumer who needs to include substantial tariffs as each State that maintains a no call list and requests to be included on the lists estab- well as quotas. update the lists maintained by the Commis- lished under section 3; and Second, we need a formula for indus- sion at that time to ensure that the lists (3) a schedule for the payment of fees to be try-wide sharing of the huge retiree maintained by the Commission contain the paid by a person who requests a list made health-care cost burdens resulting from same information contained in the no call available under section 3. lists maintained by individual States. the massive layoffs during the 1970’s SEC. 7. CIVIL CAUSE OF ACTION. and 1980’s. We must protect retirees (f) FEES.—The Commission may charge a (a) ACTION BY COMMISSION.— reasonable fee for providing a list. (1) UNFAIR OR DECEPTIVE TRADE PRACTICE.— health care needs without undermining (g) AVAILABILITY.— A violation of section 4 or 5 is an unfair or the ability of companies attempting to (1) IN GENERAL.—The Commission shall deceptive trade practice under section 5 of compete in an increasingly challenging make a list available only to a telephone so- the Federal Trade Commission Act (15 U.S.C. marketplace. Several colleagues and I licitor. 45). have previously introduced legislation (2) FORMAT.—The list shall be made avail- (2) CUMULATIVE DAMAGES.—In a civil action to accomplish this, and we have urged able in printed or electronic format, or both, brought by the Commission under section 5 the Administration to support us in at the discretion of the Chairman. of the Federal Trade Commission Act (15 this effort as past of a comprehensive SEC. 4. TELEPHONE SOLICITOR NO CALL LIST. U.S.C. 45) to recover damages arising from solution to the steel crisis we face (a) IN GENERAL.—A telephone solicitor more than one alleged violation, the dam- today. shall maintain a list of consumers who re- ages shall be cumulative. quest not to receive telephone sales calls (b) PRIVATE RIGHT OF ACTION.— Finally, companies urgently need ac- from that particular telephone solicitor. (1) IN GENERAL.—A person or entity may, if cess to capital to sustain their oper- (b) PROCEDURE.—If a consumer receives a otherwise permitted by the laws or the rules ations. This is precisely what the telephone sales call and requests to be placed of court of a State, bring in an appropriate Emergency Steel Loan Guarantee Act on the do not call list of that telephone so- court of that State— of 1999 was designed to insure. The tire- licitor, the solicitor shall— (A) an action based on a violation of sec- less efforts and foresight of Senator (1) place the consumer on the no call list of tion 4, 5, or 6 to enjoin the violation; BYRD led to the creation of the Emer- the solicitor; and (B) an action to recover for actual mone- gency Steel Loan Guarantee Board in (2) provide the consumer with a confirma- tary loss from a violation of section 4, 5, or 1999, but since then massive import tion number which shall provide confirma- 6, or to receive $500 in damages for each vio- surges, the current economic downturn tion of the request of the consumer to be lation, whichever is greater; or placed on the no call list of that telephone (C) an action under paragraphs (1) and (2). and apparently overly-restrictive in- solicitor. (2) WILLFUL VIOLATION.—If the court finds terpretations of the Board’s authority SEC. 5. TELEPHONE SOLICITATIONS. that the defendant willfully or knowingly have made it all but impossible for (a) TELEPHONE SALES CALL.—A telephone violated section 4, 5, or 6, the court may, in struggling steel firms to meet the solicitor may not make or cause to be made the discretion of the court, increase the Board’s eligibility criteria. a telephone sales call to a consumer— amount of the award to an amount equal to The bill we introduce today is de- (1) if the name and telephone number of not more than 3 times the amount available signed to address these concerns. It the consumer appear in the then current under paragraph (1)(B) of this subsection and provides the Board with the necessary quarterly lists made available by the Com- to include reasonable attorney’s fees. flexibility to provide these essential mission under section 3; SEC. 8. EFFECT ON STATE LAW. loan guarantees. In particular, the bill (2) if the consumer previously requested to Nothing in this Act shall be construed to would do the following: 1. Clarify that be placed on the do not call list of the tele- prohibit a State from enacting or enforcing phone solicitor pursuant to section 4; more stringent legislation in the regulation a company that has placed its facilities (3) to be received between the hours of nine of telephone solicitors. on ‘‘hot idle status’’ is eligible to re- o’clock p.m. and nine o’clock a.m. and be- SEC. 9. AUTHORIZATION OF APPROPRIATIONS. ceive a loan guarantee. 2. Increase the tween five o’clock p.m. and seven o’clock There are authorized to be appropriated amount of loans guaranteed with re- p.m., local time, at the location of the con- such sums as necessary to carry out the pro- spect to a single qualified steel com- sumer; visions of this Act. pany to $350,000,000. 3. Permit the Steel (4) in the form of an electronically trans- Loan Guarantee Board to guarantee a mitted facsimile; or By Mr. WELLSTONE (for him- loan where there is a fair likelihood of (5) by use of an automated dialing or re- self, Mr. DEWINE; Mr. DAYTON, corded message device. repayment, assuming vigorous and Mr. SPECTER, Mr. BAYH, Ms. MI- (b) CALLER IDENTIFICATION DEVICE.—A tele- timely enforcement of our trade laws phone solicitor shall not knowingly use any KULSKI, and Mr. VOINOVICH): and general economic prosperity. 4. method to block or otherwise circumvent the S. 1884. A bill to amend the Emer- Provide flexibility to the Board in use of a caller identification service or de- gency Steel Loan Guarantee Act of 1999 structuring security arrangements to vice by a consumer. to revise eligibility and other require- maximize participation of lenders. 5. (c) SALE OF CONSUMER INFORMATION TO ments for loan guarantees under that Expand the scope of lenders permitted TELEPHONE SOLICITORS.— Act, and for other purposes; to the to participate in a loan subject to the (1) IN GENERAL.—A person who obtains the Committee on Appropriations. name, residential address, or telephone num- guarantee to include public and private Mr. WELLSTONE. Mr. President, institutions, including the company’s ber of a consumer from a published telephone today I introduce, on behalf of myself directory or from any other source and re- existing lenders. 6. Require the Board publishes or compiles that information, elec- and Senators DEWINE, DAYTON, SPEC- to adopt form of guarantee regulations tronically or otherwise, and sells or offers to TER, MUKULSKI and BAYH the ‘‘Emer- no less favorable than those used in sell that publication or compilation to a gency Steel Loan Guarantee Amend- other government programs, including telephone solicitor for marketing or sales so- ments of 2001.’’ These amendments to the Export-Import bank. 7. Include as a licitation purposes, shall exclude from that the Steel Loan Guarantee Act of 1999 requirement for loan guarantees that publication or compilation, and from the are designed to make the loan guar- the company’s business plan maximize database used to prepare that publication or antee program more accessible to com- both retention of jobs and capacity compilation, the name, address, and tele- panies in urgent need of assistance as phone number of a consumer if the name and consistent with the long-term eco- telephone number of the consumer appear in they attempt to recover from the dev- nomic viability of the company. 8. In- the then current quarterly list made avail- astating impacts of enormous, unfair crease the loan guarantee level for all able by the Commission under section 3. import surges, as well as the effects of loans to 95 percent. (2) EXCEPTION.—This subsection does not the current recession. The recent economic conditions fac- apply to a publisher of a telephone directory A strong domestic steel industry is ing the U.s. iron ore and steel industry when a consumer is called for the sole pur- essential to our national security. To are of particular concern in Minnesota. pose of compiling, publishing, or distributing ensure the continuing viability of this We are extremely proud of our State’s a telephone directory intended for use by the critical industry and to deal with the history as the Nation’s largest pro- general public. current crisis, we must act quickly, ducer of iron ore. The taconite mines SEC. 6. REGULATIONS. The Chairman may adopt regulations to and we must act comprehensively. on the Iron Range in Minnesota and in carry out this Act that shall include— First, the Administration must pro- our sister State of Michigan have pro- (1) provisions governing the availability vide immediate and decisive strong re- vided key raw materials to the Na- and distribution of the lists established lief in the pending Section 201 steel im- tion’s steel producers for over a cen- under section 3; port surge investigation. That relief tury.

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00200 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S13973 You will not find a harder-working, to inflict serious financial harm to U.S. needs of older Americans. Currently more committed group of workers any- producers. there are 35 million Americans over 65 where in this country than you find in As a key supporter of the Emergency years old. That number will double the iron ore and taconite industry. Steel Loan Guarantee program, I be- within the next thirty years. By 2030, This is a group of people who work lieve that we must modify the program 20 percent of the U.S. population will under the toughest of conditions, are to make it work better. It is true that be over 65 years old. absolutely committed to their families, we have changed it this year; extending Both of the bills that I am intro- and who now face dire circumstances, its life and increasing the portion of ducing will promote the development through no fault of their own. Unfairly the loan covered by the guarantee from of assisted living programs to provide a traded iron ore, semi-finished steel and 85 percent to in some cases 95 percent. wide range of services, including med- finished steel products are taking their However, we need to do more. The ical assistance, housekeeping services, jobs. Wellstone/DeWine legislation would hygiene and grooming, and meals prep- Earlier this year, LTV Steel Mining clarify that a company, such as LTV, aration. Providing these services will Company halted production at its Hoyt which has placed its facilities on ‘‘hot in turn give older Americans greater Lakes, MN mine, leaving 1,400 workers idle status’’ is eligible to receive a loan opportunities to decide for themselves out of good paying jobs and affecting guarantee. It would also increase the where they live and how they exercise nearly 5,000 additional workers. We amount of loans guaranteed with re- their independence. need to act and we need to act now. spect to a single qualified steel com- The first bill I am introducing is the Workers in the steel, iron ore and taco- pany to $350,000,000; permit the Steel ‘‘Elderly Plus Supportive Health Sup- nite industries want nothing more than Loan Guarantee Board to guarantee a port Demonstration Act,’’ which will the chance to do their jobs. The bill we loan where there is a fair likelihood of provide Federal grants to allow public introduce today is one part of the an- repayment, assuming vigorous and housing authorities around the country swer. I urge my colleagues to join with timely enforcement of our trade laws to develop new strategies for providing me in moving this legislation as quick- and general economic prosperity; pro- better housing for senior citizens. ly as possible. vide flexibility to the Board in struc- Nearly one third of all public housing Mr. DEWINE. Mr. President, I rise turing security arrangements to maxi- units are occupied by senior citizens. today with my colleague and friend mize participation of lenders; expand This figure has been steadily growing from Minnesota, Senator WELLSTONE, the scope of lenders permitted to par- in recent years and will undoubtedly to introduce the Emergency Steel Loan ticipate in a loan subject to the guar- continue to grow in the future. It is Guarantee Amendments Act. This leg- antee to include public and private in- critically important that we remain islation would improve the Emergency stitutions, including the company’s ex- committed to providing low-income Steel Loan Guarantee program. isting lenders; require the Board to seniors with safe and affordable hous- Our steel industry is on the brink of adopt a form of guarantee regulations ing. financial collapse because of unfair and no less favorable than those used in Unfortunately, as we examine the illegal trade practices. To date, some other government programs, including public housing stock across the coun- 25 U.S. steel companies, including LTV the Export-Import bank, and; increase try, we find a bleak situation. Over 66 Steel in Cleveland, Ohio, have filed the loan guarantee level for all loans to percent of existing public housing units bankruptcy. These companies employ 95 percent. are more than 30 years old and most thousands of workers and are respon- We in the steel community are grate- are not designed to meet the needs of sible for providing benefits to their re- ful for the President’s leadership in ini- older Americans. For example, too few tirees. If our steel industry goes under, tiating the Section 201 trade investiga- of our housing units are equipped with the consequences to our nation, and tion, and we were generally pleased equipment and features that facilitate particularly Ohio, would be grave. with the International Trade Commis- mobility for those in wheelchairs. Even Steel is vitally important to our mili- sion’s recommendations. I was pleased such simple things as having a kitchen tary and economic security. During to see the Customs Service proceeding counter top that can be reached from a times of crisis, the industry has been a in a timely manner with the release of wheelchair may make the difference source of strength for America. With dumping and subsidy offset payments between a senior being able to stay in our economy sputtering and our nation to the victims of illegal trade prac- her home or having to leave, often to fighting a new war on terrorism, we tices, including LTV, under the Contin- be sent to an institution where seniors need a healthy steel industry now more ued Dumping and Subsidy Offset Act. have less independence and control than ever. However, without these changes to the over their lives. The ‘‘Elder Housing In 1998, more than 41 million tons of Emergency Steel Loan program, many Plus Health Support Demonstration steel found their way to U.S. markets. of our steel companies will not survive. Act’’ will give public housing authori- This was an 83 percent increase over We have an opportunity to send a pow- ties the tools they need to improve our the 23 million net ton average for the erful message to the world that Amer- public housing stock so our seniors will previous eight years. While in 1999 ica is standing by our steel industry in not be prematurely forced out of their some claimed that the steel import cri- its time of need just as the industry homes. sis was over, they were soon reminded has stood by America in her time of The second bill that I am introducing how volatile the situation really is. In need. is the ‘‘Assisted Living Tax Credit 2000, 37.8 million tons of steel flooded Act,’’ which will provide a tax incen- U.S. markets. This was almost as high By Mr. DODD: tive to help construct assisted living as the record 1998 import levels. S. 1885. A bill to establish the elderly housing for low- and moderate-income For almost 50 years, foreign steel housing plus health support dem- Americans. The current stock of as- producers have received direct and onstration program to modernize pub- sisted living facilities is inadequate to often illegal assistance from their gov- lic housing for elderly and disabled per- meet demand in certain places around ernments in the form of subsidies or sons; to the Committee on Banking, the country and the stock of mod- market intervention. This has contrib- Housing, and Urban Affairs. erately-priced units is even tighter. uted to a worldwide over production of The demand for assisted living units steel. In 1999, the Organization for Eco- By Mr. DODD: will only increase as our population nomic Cooperation and Development, S. 1886. A bill to amend the Internal ages and this highly desired housing OECD, found that world steel making Revenue Code of 1986 to allow a busi- choice should be available to all Amer- capacity remained ‘‘well-above’’ pro- ness credit for supported elderly hous- icans. The ‘‘Assisted Living Tax Credit duction between 1985 and 1999. Much of ing; to the Committee on Finance. Act’’ will help make assisted living ar- this excess steel has been shipped to Mr. DODD. Mr. President, I rise rangements available to those who the United States and priced well today to introduce two bills that will have previously been priced out of the below U.S. steel. In some cases, these help address a growing problem in market. imports were dumped, subsidized, and America, our ability to provide safe The scarceness of affordable assisted shipped in such increased quantities as and affordable housing that meets the living units has social costs that we

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00201 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S13974 CONGRESSIONAL RECORD — SENATE December 20, 2001 must consider as we set national hous- cessible units, and up-to-date safety fea- program (referred to in this Act as the ‘‘dem- ing policies for the future. Often, the tures; onstration program’’) in accordance with cost of taking care of an aging family (8) many of the dwelling units in public this Act to provide coordinated funding to housing developments for elderly and dis- public housing projects for elderly and dis- member can be devastating to Amer- abled persons are undersized, are inacces- abled families selected for participation ican families. Too often, working men sible to residents with physical limitations, under section 5, to be used for— and women are torn between the need do not comply with the requirements under (1) rehabilitation or reconfiguration of to maintain their jobs and the desire to the Americans with Disabilities Act of 1990, such projects; provide the best possible care to their or lack railings, grab bars, emergency call (2) the provision of space in such projects aging family members. buttons, and wheelchair accessible ramps; for supportive services and community and Advances in medicine are allowing us (9) a study conducted for the Department health facilities; (3) the provision of service coordinators for to live longer, healthier lives. Lon- of Housing and Urban Development found that the cost of the basic modernization such projects; and gevity is a great blessing, but it also needs for public housing for elderly and dis- (4) the provision of congregate services poses significant challenges for individ- abled persons exceeds $5,700,000,000; programs in or near such projects. uals, families, and society as whole. (10) a growing number of elderly and dis- SEC. 5. PARTICIPATION IN PROGRAM. One of the largest challenges we will abled persons face unnecessary institutional- (a) APPLICATION AND PLAN.—To be eligible face in the decades ahead is the chal- ization because of the absence of appropriate to be selected for participation in the dem- lenge of defining new kinds of housing supportive services and assisted living facili- onstration program, a public housing agency that respond to the needs of our grow- ties in their residences; shall submit to the Secretary— (11) for many elderly and disabled persons, (1) an application, in such form and man- ing elderly population. independent living in a non-institutionaliza- ner as the Secretary shall require; and It is my hope that the bills I am in- tion setting is a preferable housing alter- (2) a plan for the agency that— troducing today will generate earnest native to costly institutionalization, and (A) identifies the public housing projects discussion on these important matters would allow public monies to be more effec- for which amounts provided under this Act and will ultimately lead to action to tively used to provide necessary services for will be used, limited to projects that are des- ensure that every American senior can such persons; ignated or otherwise used for occupancy— live in security and dignity. (12) congregate housing and supportive (i) only by elderly families; or services coordinated by service coordinators (ii) by both elderly families and disabled I ask unanimous consent that the is a proven and cost-effective means of ena- families; and text of the ‘‘Elderly Housing Plus bling elderly and disabled persons to remain (B) provides for local agencies or organiza- Health Support Demonstration Act’’ be in place with dignity and independence; and tions to establish or expand the provision of printed in the RECORD. I also ask unan- (13) the effective provision of congregate health-related services or other services that imous consent that the ‘‘Assisted Liv- services and assisted living in public housing will enhance living conditions for residents ing Tax Credit Act’’ be printed in the developments requires the redesign of units of public housing projects of the agency, pri- and buildings to accommodate independent marily in the project or projects to be as- RECORD. living. sisted under the plan. S. 1885 (b) PURPOSES.—The purposes of this Act (b) SELECTION AND CRITERIA.— There being no objection, the bills are— (1) SELECTION.—The Secretary shall select were ordered to be printed in the (1) to establish a demonstration program public housing agencies for participation in RECORD, as follows: to make competitive grants to provide state- the demonstration program based upon a Be it enacted by the Senate and House of Rep- of-the-art health-supportive housing with as- competition among public housing agencies resentatives of the United States of America in sisted living opportunities for elderly and that submit applications for participation. Congress assembled, disabled persons; (2) CRITERIA.—The competition referred to (2) to provide funding to enhance, make in paragraph (1) shall be based upon— SECTION 1. SHORT TITLE. safe and accessible, and extend the useful life (A) the extent of the need for rehabilita- This Act may be cited as the ‘‘Elderly of public housing developments for the elder- tion or reconfiguration of the public housing Housing Plus Health Support Demonstration ly and disabled and to increase their accessi- projects of an agency that are identified in Act’’. bility to supportive services; the plan of the agency pursuant to sub- SEC. 2. FINDINGS AND PURPOSES. (3) to provide elderly and disabled public section (a)(2)(A); (a) FINDINGS.—The Congress finds that— housing residents a readily available choice (B) the past performance of an agency in (1) there are not fewer than 34,100,000 in living arrangements by utilizing the serv- serving the needs of elderly public housing Americans who are 65 years of age and older, ices of service coordinators and providing a residents or non-elderly, disabled public and persons who are 85 years of age or older continuum of care that allows such residents housing residents given the opportunities in comprise almost one-quarter of that popu- to age in place; the locality; lation; (4) to incorporate congregate housing serv- (C) the past success of an agency in obtain- (2) the Bureau of the Census of the Depart- ice programs more fully into public housing ing non-public housing resources to assist ment of Commerce estimates that, by 2030, operations; and such residents given the opportunities in the the elderly population will double to (5) to accomplish such purposes and pro- locality; and 70,000,000 persons; vide such funding under existing provisions (D) the effectiveness of the plan of an agen- (3) according to the Department of Housing of law that currently authorize all activities cy in creating or expanding services de- and Urban Development report ‘‘Housing Our to be conducted under the program. scribed in subsection (a)(2)(B). Elders—A Report Card on the Housing Condi- SEC. 3. DEFINITIONS. SEC. 6. CONFIGURATION AND CAPITAL IMPROVE- tions and Needs of Older Americans’’, the In this Act: MENTS. largest and fastest growing segments of the (1) ELDERLY AND DISABLED FAMILIES.—The (a) GRANTS.— older population include many people who term ‘‘elderly and disabled families’’ means (1) IN GENERAL.—The Secretary shall make have historically been vulnerable economi- families in which 1 or more persons is an el- grants to public housing agencies selected cally and in the housing market—women, derly person or a person with disabilities. for participation under section 5, to be used minorities, and people over the age of 85; (2) ELDERLY PERSON.—The term ‘‘elderly only— (4) many elderly persons are at significant person’’ means a person who is 62 years of (A) for capital improvements to rehabili- risk with respect to the availability, sta- age or older. tate or reconfigure public housing projects bility, and accessibility of affordable hous- (3) PERSON WITH DISABILITIES.—The term identified in the plan submitted under sec- ing; ‘‘person with disabilities’’ has the same tion 5(a)(2)(A); and (5) one third of public housing residents are meaning as in section 3(b)(3)(E) of the United (B) to provide space for supportive services approximately 62 years of age or older, mak- States Housing Act of 1937 (42 U.S.C. and for community and health-related facili- ing public housing the largest Federal hous- 1437a(b)(3)(E)). ties primarily for the residents of projects ing program for senior citizens; (4) PUBLIC HOUSING AGENCY.—The term identified in the plan submitted under sec- (6) the elderly population residing in public ‘‘public housing agency’’ has the same mean- tion 5(a)(2)(A). housing is older, poorer, frailer, and more ra- ing as in section 3(b)(6)(A) of the United (2) SOURCE OF FUNDS.—Grants shall be cially diverse than the elderly population re- States Housing Act of 1937 (42 U.S.C. made under this section from funds made siding in other assisted housing; 1437a(b)(6)(A)). available for the demonstration program in (7) two-thirds of the public housing devel- (5) SECRETARY.—The term ‘‘Secretary’’ accordance with subsection (c). opments for the elderly, including those that means the Secretary of Housing and Urban (3) INAPPLICABILITY OF OTHER PROVISIONS.— also serve the disabled, were constructed be- Development. Section 9(c)(1) of the United States Housing fore 1970 and are in dire need of major reha- SEC. 4. AUTHORITY FOR ELDERLY HOUSING Act of 1937 (42 U.S.C. 1437g(c)(1)) does not bilitation and reconfiguration, such as reha- PLUS HEALTH SUPPORT PROGRAM. apply to grants made under this section. bilitation to provide new roofs, energy-effi- The Secretary shall establish an elderly (b) ALLOCATION.—Grants funded in accord- cient heating, cooling, utility systems, ac- housing plus health support demonstration ance with this section shall—

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00202 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S13975 (1) be allocated among public housing the demonstration program, to make grants ‘‘(ii) 20 percent of the qualified basis of agencies selected for participation under sec- in accordance with this section— such building (determined without regard to tion 5 on the basis of the criteria established (1) $3,000,000 for fiscal year 2003; and this subparagraph). under section 5(b)(2); and (2) such sums as may be necessary for fis- ‘‘(2) QUALIFIED SUPPORTED ELDERLY BUILD- (2) be made in such amounts and subject to cal year 2005 and each subsequent fiscal year. ING.—The term ‘qualified supported elderly such terms as the Secretary shall determine. SEC. 9. SAFEGUARDING OTHER APPROPRIA- building’ means any building which is part of (c) AUTHORIZATION OF APPROPRIATIONS.— TIONS. a qualified supported elderly housing project There are authorized to be appropriated for Amounts authorized to be appropriated at all times during the period— the demonstration program, to make grants under this Act to carry out this Act are in ‘‘(A) beginning on the 1st day in the com- in accordance with this section— addition to any amounts authorized to be ap- pliance period on which such building is part (1) $100,000,000 for fiscal year 2002; and propriated under any other provision of law, of such a project, and (2) such sums as may be necessary for fis- or otherwise made available in appropria- ‘‘(B) ending on the last day of the compli- cal year 2003 and each subsequent fiscal year. tions Acts, for rehabilitation of public hous- ance period with respect to such building. SEC. 7. SERVICE COORDINATORS. ing projects, for service coordinators for pub- Such term does not include any building (a) GRANTS.— lic housing projects, or for congregate hous- with respect to which moderate rehabilita- (1) IN GENERAL.—The Secretary shall make ing services programs. tion assistance is provided, at any time dur- grants to public housing agencies selected ing the compliance period, under section for participation under section 5, to be used S. 1886 8(e)(2) of the United States Housing Act of only— Be it enacted by the Senate and House of Rep- 1937 (other than assistance under the Stew- (A) for public housing projects for elderly resentatives of the United States of America in art B. McKinney Homeless Assistance Act and disabled families for whom capital as- Congress assembled, (as in effect on the date of the enactment of sistance is provided under section 6; and SECTION 1. SHORT TITLE. this sentence)). (B) to provide service coordinators and re- This Act may be cited as the ‘‘Assisted ‘‘(3) CREDIT PERIOD.—The term ‘credit pe- lated activities identified in the plan of the Living Tax Credit Act’’. riod’ means, with respect to any building, agency pursuant to section 5(a)(2), so that SEC. 2. SUPPORTED ELDERLY HOUSING CREDIT. the period of 10 taxable years beginning with— the residents of such public housing projects (a) IN GENERAL.—Subpart D of part IV of ‘‘(A) the taxable year in which the building will have improved and more economical ac- subchapter A of chapter 1 of the Internal is placed in service, or cess to services that support the health and Revenue Code of 1986 (relating to business re- ‘‘(B) at the election of the taxpayer, the well-being of the residents. lated credits) is amended by adding at the succeeding taxable year, (2) SOURCE OF FUNDS.—Grants shall be end the following: but only if the building is a qualified sup- made under this section from funds made SEC. 42A. SUPPORTED ELDERLY HOUSING CRED- available for the demonstration program in IT. ported elderly building as of the close of the accordance with subsection (c). ‘‘(a) AMOUNT OF CREDIT.—For purposes of 1st year of such period. The election under (3) INAPPLICABILITY OF OTHER PROVISIONS.— section 38, the amount of the supported el- subparagraph (B), once made, shall be irrev- Section 9(c)(1) of the United States Housing derly housing credit determined under this ocable. Act of 1937 (42 U.S.C. 1437g(c)(1)) does not section for any taxable year in the credit pe- ‘‘(4) APPLICABLE RULES.— ‘‘(A) For treatment of certain rehabilita- apply to grants made under this section. riod shall be an amount equal to the sum tion expenditures as separate new buildings, (b) ALLOCATION.—The Secretary shall pro- of— subsection (e) of section 42 shall apply. vide a grant pursuant to this section, in an ‘‘(A) 9 percent of the qualified basis of each ‘‘(B) For rules regarding the application of amount not to exceed $100,000, to each public qualified supported elderly building, plus the credit period, paragraph (2) through (5) of housing agency that is selected for participa- ‘‘(B) 4 percent of such qualified basis with section 42(f) shall apply. tion under section 5. respect to any qualified supported elderly ‘‘(c) QUALIFIED SUPPORTED ELDERLY HOUS- (c) AUTHORIZATION OF APPROPRIATIONS.— building providing qualified supported elder- ING PROJECT.—For purposes of this section— ly services. There are authorized to be appropriated for ‘‘(1) IN GENERAL.—The term ‘qualified sup- ‘‘(b) QUALIFIED BASIS; QUALIFIED SUP- the demonstration program, to make grants ported elderly housing project’ means any PORTED ELDERLY BUILDING; CREDIT PERIOD.— in accordance with this section— project for residential rental property if the For purposes of this section— (1) $2,000,000 for fiscal year 2002; and project meets the requirements of subpara- ‘‘(1) QUALIFIED BASIS.— (2) such sums as may be necessary for fis- graph (A) or (B) whichever is elected by the cal year 2003 and each subsequent fiscal year. ‘‘(A) DETERMINATION.—The qualified basis of any qualified supported elderly building taxpayer: SEC. 8. CONGREGATE HOUSING SERVICES PRO- ‘‘(A) 20–50 TEST.—The project meets the re- GRAMS. for any taxable year is an amount equal to— ‘‘(i) the applicable fraction (determined as quirements of this subparagraph if 20 percent (a) GRANTS.— of the close of such taxable year) of or more of the residential units in such (1) IN GENERAL.—The Secretary shall make ‘‘(ii) the eligible basis of such building (de- project are both rent-restricted and occupied grants to public housing agencies selected termined under rules similar to the rules by individuals whose income is 50 percent or for participation under section 5, to be used under section 42(d)). less of area median gross income. only— ‘‘(B) 40–90 TEST.—The project meets the re- ‘‘(B) APPLICABLE FRACTION.—For purposes (A) in connection with public housing of subparagraph (A), the term ‘applicable quirements of this subparagraph if 40 percent projects for elderly and disabled families for fraction’ means the smaller of the unit frac- or more of the residential units in such which capital assistance is provided under tion or the floor space fraction. project are both rent-restricted and occupied section 6; and ‘‘(C) UNIT FRACTION.—For purposes of sub- by individuals whose income is 90 percent or (B) to carry out a congregate housing serv- paragraph (B), the term ‘unit fraction’ less of area median gross income. ice program identified in the plan of the means the fraction— Any election under this paragraph, once agency pursuant to section 5(a)(2) that pro- ‘‘(i) the numerator of which is the number made, shall be irrevocable. For purposes of vides services as described in section 202(g)(1) of supported elderly units in the building, this paragraph, any property shall not be of the Housing Act of 1959 (12 U.S.C. and treated as failing to be residential rental 1701q(g)(1)). ‘‘(ii) the denominator of which is the num- property merely because part of the building (2) SOURCE OF FUNDS.—Grants shall be ber of residential rental units (whether or in which such property is located is used for made under this section from funds made not occupied) in such building. purposes other than residential rental pur- available for the demonstration program in ‘‘(D) FLOOR SPACE FRACTION.—For purposes poses. accordance with subsection (c). of subparagraph (B), the term ‘floor space ‘‘(2) RENT-RESTRICTED UNITS.— (3) INAPPLICABILITY OF OTHER PROVISIONS.— fraction’ means the fraction— ‘‘(A) IN GENERAL.—For purposes of para- Other than as specifically provided in this ‘‘(i) the numerator of which is the total graph (1), a residential unit is rent-restricted section— floor space of the supported elderly units in if the gross rent with respect to such unit (A) section 9(c)(1) of the United States such building, and does not exceed 65 percent of the imputed in- Housing Act of 1937 (42 U.S.C. 1437g(c)(1)) ‘‘(ii) the denominator of which is the total come limitation applicable to such unit. For does not apply to grants made under this floor space of the residential rental units purposes of the preceding sentence, the section; and (whether or not occupied) in such building. amount of the income limitation under para- (B) section 202 of the Housing Act of 1959 ‘‘(E) QUALIFIED BASIS TO INCLUDE PORTION graph (1) applicable for any period shall not (12 U.S.C. 1701q) does not apply to grants OF BUILDING USED TO PROVIDE QUALIFIED SUP- be less than such limitation for the earliest made under this section. PORTED ELDERLY SERVICES.—In the case of a period the building (which contains the unit) (b) ALLOCATION.—The Secretary shall pro- qualified supported elderly building de- was included in the determination of wheth- vide a grant pursuant to this section, in an scribed in subsection (a)(2), the qualified er the project is a qualified supported elderly amount not to exceed $150,000, to each public basis of such building for any taxable year housing project. housing agency that is selected for participa- shall be increased by the less of— ‘‘(B) GROSS RENT.—For purposes of sub- tion under section 5. ‘‘(i) so much of the eligible basis of such paragraph (A), gross rent— (c) AUTHORIZATION OF APPROPRIATIONS.— building as is used through the year to pro- ‘‘(i) includes any fee for a qualified sup- There are authorized to be appropriated for vide qualified support elderly services, or ported elderly service which is paid to the

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00203 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S13976 CONGRESSIONAL RECORD — SENATE December 20, 2001 owner of the unit (on the basis of the sup- ‘‘(ii) the sum of such payment and the each building which is (or will be) part of ported elderly status of the tenant of the gross rent with respect to such unit does not such project is identified in such form and unit) by any governmental program of as- exceed the sum of the amount of such pay- manner as the Secretary may provide. sistance (or by an organization described in ment which would be made and the gross ‘‘(5) CERTAIN RULES MADE APPLICABLE.— section 501(c)(3) and exempt from tax under rent which would be payable with respect to Paragraphs (2) (other than subparagraph (A) section 501(a)) if such program (or organiza- such unit if— thereof), (3), (4), (5), (6), and (7) of section tion) provides assistance for rent and the ‘‘(I) the income of the occupants thereof 142(d), and section 6652(j), shall apply for pur- amount of assistance provided for rent is not did not exceed the income limitation appli- poses of determining whether any project is separable from the amount of assistance pro- cable under paragraph (1), and a qualified supported elderly housing project vided for supportive services. ‘‘(II) such units were rent-restricted within and whether any unit is a supported elderly ‘‘(ii) does not include any payment under the meaning of subparagraph (A). unit; except that, in applying such provi- section 8 of the United States Housing Act of The preceding sentence shall apply to any sions for such purposes, the term ‘gross rent’ 1937 or any comparable rental assistance pro- shall have the meaning given such term by gram (with respect to such unit or occupants unit only if the result described in clause (ii) is required by Federal statute as of the date paragraph (2)(B) of this subsection. thereof), ‘‘(6) ELECTION TO TREAT BUILDING AFTER ‘‘(iii) includes any utility allowance deter- of the enactment of this subparagraph and as COMPLIANCE PERIOD AS NOT PART OF A mined by the Secretary after taking into ac- of the date the Federal rental assistance PROJECT.—For purposes of this section, the count such determinations under section 8 of payment is made. taxpayer may elect to treat any building as the United States Housing Act of 1937, and ‘‘(3) QUALIFIED SUPPORTED ELDERLY SERV- ‘‘(iv) does not include any rental payment ICE.—The term ‘qualified supported elderly not part of a qualified supported elderly to the owner of the unit to the extent such service’ means any service provided under a housing project for any period beginning owner pays an equivalent amount to the planned program of services designed to en- after the compliance period for such build- Farmers’ Home Administration under sec- able residents of a residential rental prop- ing. tion 515 of the Housing Act of 1949. erty to remain independent and avoid place- ‘‘(7) SPECIAL RULE WHERE DE MINIMIS EQUITY ‘‘(C) IMPUTED INCOME LIMITATION APPLICA- ment in a hospital, nursing home, or inter- CONTRIBUTION.—Proeprty shall not be treated BLE TO UNIT.—For purposes of this paragraph, mediate care facility for the mentally or as failing to be residential rental property the imputed income limitation applicable to physically handicapped. In the case of a sin- for purposes of this section merely because a unit is the income limitation which would gle-room occupancy unit or a building de- the occupant of a residential unit in the apply under paragraph (1) to individuals oc- scribed in subsection (h)(2)(B)(iii), such term project pays (on a voluntary basis) to the cupying the unit if the number of individuals includes any service provided to assist ten- lessor a de minimis amount to be held to- occupying the unit were as follows: ants in locating and retaining permanent ward the purchase by such occupant of a res- ‘‘(i) In the case of a unit which does not housing. idential unit in such project if— ‘‘(A) all amounts so paid are refunded to have a separate bedroom, 1 individual. ‘‘(4) DATE FOR MEETING REQUIRMENTS.— ‘‘(ii) In the case of a unit which has 1 or ‘‘(A) IN GENERAL.—Except as otherwise pro- the occupant on the cessation of his occu- more separate bedrooms, 1.5 individuals for vided in this paragraph, a building shall be pancy of a unit in the project, and each separate bedroom. treated as a qualified supported elderly ‘‘(B) the purchase of the unit is not per- In the case of a project with respect to building only if the project (of which such mitted until after the close of the compli- which a credit is allowable by reason of this ance period with respect to the building in section and for which financing is provided building is a part) meets the requirements of paragraph (1) not later than the close of the which the unit is located. by a bond described in section 142(a)(7), the Any amount paid to the lessor as described imputed income limitation shall apply in 1st year of the credit period for such build- ing. in the preceding sentence shall be included lieu of the otherwise applicable income limi- in gross rent under paragraph (2) for pur- tation for purposes of applying section ‘‘(B) BUILDINGS WHICH RELY ON LATER poses of determining whether the unit is 142(d)(4)(B)(ii). BUILDINGS FOR QUALIFICATION.— rent-restricted. ‘‘(D) TREATMENT OF UNITS OCCUPIED BY INDI- ‘‘(i) IN GENERAL.—In determining whether a ‘‘(8) SCATTERED SITE PROJECTS.—Buildings VIDUALS WHOSE INCOMES RISE ABOVE LIMIT.— building (in this subparagraph referred to as ‘‘(i) IN GENERAL.—Except as provided in the ‘prior building’) is a qualified supported which would (but for their lack of proximity) clause (ii), notwithstanding an increase in elderly building, the taxpayer may take into be treated as a project for purposes of this the income of occupants of a supported elder- account 1 or more additional buildings section shall be so treated if all of the dwell- ly unit above the income limitation applica- placed in service during the 12-month period ing units in each of the buildings are rent-re- ble under paragraph (1), such unit shall con- described in subparagraph (A) with respect stricted (within the meaning of paragraph tinue to be treated as a supported elderly to the prior building only if the taxpayer (2)) residential rental units. unit if the income of such occupants initially elects to apply clause (ii) with respect to ‘‘(9) WAIVER OF CERTAIN DE MINIMIS ERRORS met such income limitation and such unit each additional building taken into account. AND RECERTIFICATIONS.—On application by continues to be rent restricted. ‘‘(ii) TREATMENT OF ELECTED BUILDINGS.—In the taxpayer, the Secretary may waive— ‘‘(ii) NEXT AVAILABLE UNIT MUST BE RENTED the case of a building which the taxpayer ‘‘(A) any recapture under subsection (i) in TO SUPPORTED ELDERLY TENANT IF INCOME elects to take into account under clause (i), the case of any de minimis error in com- RISES ABOVE 140 PERCENT OF INCOME LIMIT.—If the period under subparagraph (A) for such plying with paragraph (1), or ‘‘(B) any annual recertification of tenant the income of the occupants of the unit in- building shall end at the close of the 12- income for purposes of this subsection, if the creases above 140 percent of the income limi- month period applicable to the prior build- entire building is occupied by supported el- tation applicable under paragraph (1), clause ing. derly tenants. (i) shall cease to apply to such unit if any ‘‘(iii) DATE PRIOR BUILDING IS TREATED AS ‘‘(d) LIMITATION ON AGGREGATE CREDIT AL- residential rental unit in the building (of a PLACED IN SERVICE.—For purposes of deter- LOWABLE WITH RESPECT TO PROJECTS LO- size comparable to, or smaller than, such mining the credit period and the compliance CATED IN A STATE.— unit) is occupied by a new resident whose in- period for the prior building, the prior build- ‘‘(1) CREDIT MAY NOT EXCEED CREDIT come exceeds such income limitation. In the ing shall be treated for purposes of this sec- AMOUNT ALLOCATED TO BUILDING.—The case of a project described in section tion as placed in service on the most recent 142(d)(4)(B), the preceding sentence shall be amount of the credit determined under this date any additional building elected by the section for any taxable year with respect to applied by substituting ‘170 percent’ for ‘140 taxpayer (with respect to such prior build- percent’ and by substituting ‘any supported any building shall not exceed the supported ing) was placed in service. elderly housing credit dollar amount allo- elderly unit in the building is occupied by a ‘‘(C) SPECIAL RULE.—A building— cated to such building under rules similar to new resident whose income exceeds 40 per- ‘‘(i) other than the 1st building placed in the rules of paragraph (1) of section 42(h). cent of area median gross income’ for ‘any service as part of a project, and ‘‘(2) ALLOCATED CREDIT AMOUNT TO APPLY residential unit in the building (of a size (ii) other than a building which is placed in TO ALL TAXABLE YEARS ENDING DURING OR comparable to, or smaller than, such unit) is service during the 12-month period described AFTER CREDIT ALLOCATION YEAR.—Any sup- occupied by a new resident whose income ex- in subparagraph (A) with the respect to a ceeds such income limitation’. ported elderly housing credit dollar amount prior building which becomes a qualified sup- allocated to any building for any calendar ‘‘(E) UNITS WHERE FEDERAL RENTAL ASSIST- ported elderly building, ANCE IS REDUCED AS TENANT’S INCOME IN- year— CREASES.—If the gross rent with respect to a shall in no event be treated as a qualified ‘‘(A) shall apply to such building for all residential unit exceeds the limitation under supported elderly building unless the project taxable years in the compliance period end- subparagraph (A) by reason of the fact that is a qualified supported elderly housing ing during or after such calendar year, and the income of the occupants thereof exceeds project (without regard to such building) on ‘‘(B) shall reduce the aggregate supported the income limitation applicable under para- the date such building is placed in service. elderly housing credit dollar amount of the graph (1), such unit shall, nevertheless, be ‘‘(D) PROJECTS WITH MORE THAN 1 BUILDING allocating agency only for such calendar treated as a rent-restricted unit for purposes MUST BE IDENTIFIED.—For purposes of this year. of paragraph (1) if— section a project shall be treated as con- ‘‘(3) SUPPORTED ELDERLY HOUSING CREDIT ‘‘(i) a Federal rental assistance payment sisting of only 1 building unless, before the DOLLAR AMOUNT FOR AGENCIES.— described in subparagraph (B)(i) is made with close of the 1st calendar year in the project ‘‘(A) IN GENERAL.—The aggregate supported respect to such unit or its occupants, and period (as defined in subsection (d)(1)(F)(ii)), elderly housing credit dollar amount which a

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00204 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S13977 supported elderly housing credit agency may ulation shall be determined in accordance housing project is described in this subpara- allocate for any calendar year is the portion with section 146(j). graph if a qualified nonprofit organization is of the State supported elderly housing credit ‘‘(iv) QUALIFIED STATE.—For purposes of to materially participate (within the mean- ceiling allocated under this paragraph for this subparagraph, the term ‘qualified State’ ing of section 469(h)) in the development and such calendar year to such agency. means, with respect to a calendar year, any operation of the project throughout the com- ‘‘(B) STATE CEILING INITIALLY ALLOCATED TO State— pliance period. STATE SUPPORTED ELDERLY HOUSING CREDIT ‘‘(I) which allocated its entire State sup- ‘‘(C) QUALIFIED NONPROFIT ORGANIZATION.— AGENCIES.—Except as provided in subpara- ported elderly housing credit ceiling for the For purposes of this paragraph, the term graphs (D) and (E), the State supported el- preceding calendar year; and ‘qualified nonprofit organization’ means any derly housing credit ceiling for each cal- ‘‘(II) for which a request is made (not later organization if— endar year shall be allocated to the sup- than May 1 of the calendar year) to receive ‘‘(i) such organization is described in para- ported elderly housing credit agency of such an allocation under clause (iii). graph (3) or (4) of section 501(c) and is exempt State. If there is more than 1 supported el- ‘‘(E) SPECIAL RULE FOR STATES WITH CON- from tax under section 501(a), derly housing credit agency of a State, all STITUTIONAL HOME RULE CITIES.—For purposes ‘‘(ii) such organization is determined by such agencies shall be treated as a single of this subsection— the State supported elderly housing credit agency. ‘‘(i) IN GENERAL.—The aggregate supported agency not to be affiliated with or controlled ‘‘(C) STATE SUPPORTED ELDERLY HOUSING elderly housing credit dollar amount for any by a for-profit organization; and CREDIT CEILING.—The State supported elderly constitutional home rule city for any cal- ‘‘(iii) 1 of the exempt purposes of such or- housing credit ceiling applicable to any endar year shall be an amount which bears ganization includes the fostering of sup- State and any calendar year shall be an the same ratio to the State supported elderly ported elderly housing. amount equal to the sum of— housing credit ceiling for such calendar year ‘‘(D) TREATMENT OF CERTAIN SUBSIDI- ‘‘(i) the unused State supported elderly as— ARIES.— housing credit ceiling (if any) of such State ‘‘(I) the population of such city, bear to ‘‘(i) IN GENERAL.—For purposes of this for the preceding calendar year, ‘‘(II) the population of the entire State. paragraph, a qualified nonprofit organization ‘‘(ii) $1.25 multiplied by the State popu- ‘‘(ii) COORDINATION WITH OTHER ALLOCA- shall be treated as satisfying the ownership lation, TIONS.—In the case of any State which con- and material participation test of subpara- ‘‘(iii) the amount of State supported elder- tains 1 or more constitutional home rule cit- graph (B) if any qualified corporation in ly housing credit ceiling returned in the cal- ies, for purposes of applying this paragraph which such organization holds stock satisfies endar year, plus with respect to supported elderly housing such test. ‘‘(iv) the amount (if any) allocated under credit agencies in such State other than con- ‘‘(ii) QUALIFIED CORPORATION.—For pur- subparagraph (D) to such State by the Sec- stitutional home rule cities, the State sup- poses of clause (i), the term ‘qualified cor- retary. ported elderly housing credit ceiling for any poration’ means any corporation if 100 per- calendar year shall be reduced by the aggre- cent of the stock of such corporation is held For purposes of clause (i), the unused State gate supported elderly housing credit dollar by 1 or more qualified nonprofit organiza- supported elderly housing credit ceiling for amounts determined for such year for all tions at all times during the period such cor- any calendar year is the excess (if any) of the constitutional home rule cities in such poration is in existence. sum of the amounts described in clauses (i) State. ‘‘(E) STATE MAY NOT OVERRIDE SETASIDE.— through (iv) over the aggregate supported el- ‘‘(iii) CONSTITUTIONAL HOME RULE CITY.— Nothing in subparagraph (F) of paragraph (3) derly housing credit dollar amount allocated For purposes of this paragraph, the term shall be construed to permit a State not to for such year. For purposes of clause (iii), ‘constitutional home rule city’ has the comply with subparagraph (A) of this para- the amount of State supported elderly hous- meaning given such term by section graph. ing credit ceiling returned in the calendar 146(d)(3)(C). ‘‘(6) BUILDINGS ELIGIBLE FOR CREDIT ONLY IF year equals the supported elderly housing ‘‘(F) STATE MAY PROVIDE FOR DIFFERENT AL- MINIMUM LONG-TERM COMMITMENT TO SUP- credit dollar amount previously allocated LOCATION.—Rules similar to the rules of sec- PORTED ELDERLY HOUSING.— within the State to any project which fails tion 146(e) (other than paragraph (2)(B) ‘‘(A) IN GENERAL.—Under rules similar to to meet the 10 percent test under section thereof) shall apply for purposes of this para- the rules under section 42(h)(6), no credit 42(h)(1)(E)(ii) on a date after the close of the graph. shall be allowed by reason of this section calendar year in which the allocation was ‘‘(G) POPULATION.—For purposes of this with respect to any building for the taxable made or which does not become a qualified paragraph, population shall be determined in year unless an extended supported elderly supported elderly housing project within the accordance with section 146(j). housing commitment is in effect as of the period required by this section or the terms ‘‘(4) CREDIT FOR BUILDINGS FINANCED BY end of such taxable year. of the allocation or to any project with re- TAX-EXEMPT BONDS SUBJECT TO VOLUME CAP ‘‘(B) EXTENDED SUPPORTED ELDERLY HOUS- spect to which an allocation is canceled by NOT TAKEN INTO ACCOUNT.— ING COMMITMENT.—For purposes of this para- mutual consent of the supported elderly ‘‘(A) IN GENERAL.—Paragraph (1) shall not graph, the term ‘extended supported elderly housing credit agency and the allocation re- apply to the portion of any credit allowable housing commitment’ has the meaning given cipient. under subsection (a) which is attributable to the term ‘extended low-income housing com- ‘‘(D) UNUSED SUPPORTED ELDERLY HOUSING eligible basis financed by any obligation the mitment’ under section 42(h)(6). CREDIT CARRYOVERS ALLOCATED AMONG CER- interest on which is exempt from tax under ‘‘(7) APPLICATION OF CERTAIN RULES.—For TAIN STATES.— section 103 if— purposes of this section, rules similar to the ‘‘(i) IN GENERAL.—The unused supported el- ‘‘(i) such obligation is taken into account rules of section 42(h)(7) shall apply. derly housing credit carryover of a State for under section 146, and ‘‘(8) OTHER DEFINITIONS.—For purposes of any calendar year shall be assigned to the ‘‘(ii) principal payments on such financing this subsection— secretary for allocation among qualified are applied within a reasonable period to re- ‘‘(A) SUPPORTED ELDERLY HOUSING CREDIT states for the succeeding calendar year. deem obligations the proceeds of which were AGENCY.—The term ‘supported elderly hous- ‘‘(ii) UNUSED SUPPORTED ELDERLY HOUSING used to provide such financing. ing credit agency’ means any agency author- CREDIT CARRYOVER.—For purposes of this ‘‘(B) SPECIAL RULE WHERE 50 PERCENT OR ized to carry out this subsection. subparagraph, the unused supported elderly MORE OF BUILDING IS FINANCED WITH TAX-EX- ‘‘(B) POSSESSIONS TREATED AS STATES.—The housing credit carryover of a State for any EMPT BONDS SUBJECT TO VOLUME CAP.—For term ‘State’ includes a possession of the calendar year is the excess (if any) of— purposes of subparagraph (A), if 50 percent or United States. ‘‘(I) the unused State supported elderly more of the aggregate basis of any building ‘‘(e) DEFINITIONS AND SPECIAL RULES.—For housing credit ceiling for the year preceding and the land on which the building is located purposes of this section— such year, over is financed by any obligation described in ‘‘(1) COMPLIANCE PERIOD.—The term ‘com- ‘‘(II) the aggregate supported elderly hous- subparagraph (A), paragraph (1) shall not pliance period’ means, with respect to any ing credit dollar amount allocated for such apply to any portion of the credit allowable building, the period of 15 taxable years be- year. under subsection (a) with respect to such ginning with the 1st taxable year of the cred- ‘‘(iii) FORMULA FOR ALLOCATION OF UNUSED building. it period with respect thereto. SUPPORTED ELDERLY HOUSING CREDIT ‘‘(5) PORTION OF STATE CEILING SET-ASIDE ‘‘(2) SUPPORTED ELDERLY UNIT.— CARRYOVERS AMONG QUALIFIED STATES.—The FOR CERTAIN PROJECTS INVOLVING QUALIFIED ‘‘(A) IN GENERAL.—The term ‘supported el- amount allocated under this subparagraph to NONPROFIT ORGANIZATIONS.— derly unit’ means any unit in a building if— a qualified State for any calendar year shall ‘‘(A) IN GENERAL.—Not more than 90 per- ‘‘(i) such unit is rent-restricted (as defined be the amount determined by the Secretary cent of the State supported elderly housing in subsection (c)(2)), and to bear the same ratio to the aggregate un- credit ceiling for any State for any calendar ‘‘(ii) the individuals occupying such unit used supported elderly housing credit year shall be allocated to projects other than meet the income limitation applicable under carryovers of all States for the preceding qualified supported elderly housing projects subsection (c)(1) to the project of which such calendar year as such State’s population for described in subparagraph (B). building is a part. the calendar year bears to the population of ‘‘(B) PROJECTS INVOLVING QUALIFIED NON- ‘‘(B) EXCEPTION.— all qualified States for the calendar year. PROFIT ORGANIZATIONS.—For purposes of sub- ‘‘(i) IN GENERAL.—A unit shall not be treat- For purposes of the preceding sentence, pop- paragraph (A), a qualified supported elderly ed as a supported elderly unit unless the unit

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00205 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S13978 CONGRESSIONAL RECORD — SENATE December 20, 2001 is suitable for occupancy and used other chase price under this subparagraph is an ‘‘(11) the supported elderly housing credit than on a transient basis. amount equal to the sum of— determined under section 42A, and’’. ‘‘(ii) SUITABILITY FOR OCCUPANCY.—For pur- ‘‘(i) the principal amount of outstanding (4) Section 774(b)(4) of such Code is amend- poses of clause (i), the suitability of a unit indebtedness secured by the building (other ed by inserting ‘‘, 42A(f),’’ after ‘‘section for occupancy shall be determined under reg- than indebtedness incurred within the 5-year 42(j)’’. ulations prescribed by the Secretary taking period ending on the date of the sale to the (e) CLERICAL AMENDMENT.—The table of into account local health, safety, and build- tenants), and sections for subpart D of part IV of sub- ing codes. ‘‘(ii) all Federal, State, and local taxes at- chapter A of chapter 1 of the Internal Rev- ‘‘(iii) TRANSITIONAL HOUSING FOR HOME- tributable to such sale. enue Code of 1986 is amended by inserting LESS.—For purposes of clause (i), a unit shall Except in the case of Federal income taxes, after the item relating to section 42 the fol- be considered to be used other than on a there shall not be taken into account under lowing: transient basis if the unit contains sleeping clause (ii) any additional tax attributable to ‘‘Sec. 42A. Supported elderly housing cred- accommodations and kitchen and bathroom the application of clause (ii). it.’’. facilities and is located in a building— ‘‘(f) RECAPTURE OF CREDIT.— ‘‘(I) which is used exclusively to facilitate (f) EFFECTIVE DATE.—The amendments ‘‘(1) IN GENERAL.—If— made by this section shall apply to expendi- the transition of homeless individuals (with- ‘‘(A) as of the close of any taxable year in in the meaning of section 103 of the Stewart tures made in taxable years beginning after the compliance period, the amount of the the date of the enactment of this Act. B. McKinney Homeless Assistance Act (42 qualified basis of any building with respect U.S.C. 11302), as in effect on the date of the to the taxpayer is less than. enactment of this clause) to independent liv- By Ms. SNOWE: ‘‘(B) the amount of such basis as of the S. 1887. A bill to provide for renewal ing within 24 months, and close of the preceding taxable year, ‘‘(II) in which a governmental entity or of project-based assisted housing con- qualified nonprofit organization (as defined then the taxpayer’s tax under this chapter tracts at reimbursement levels that are in subsection (d)(5)(C)) provides such individ- for the taxable year shall be increased by the sufficient to sustain operations, and for uals with temporary housing and supportive credit recapture amount determined under rules similar to the rules of section 42(j). other purposes; to the Committee on services designed to assist such individuals Banking, Housing, and Urban Affairs. in locating and retaining permanent hous- ‘‘(g) APPLICATION OF AT-RISK RULES.—For purposes of this section, rules similar to the Ms. SNOWE. Mr. President, I rise ing. today to introduce legislation intended ‘‘(iv) SINGLE-ROOM OCCUPANCY UNITS.—For rules of section 42(k) shall apply. purposes of clause (i), a single-room occu- ‘‘(h) RESPONSIBILITIES OF TAXPAYERS AND to correct serious inequities created by pancy unit shall not be treated as used on a SUPPORTED ELDERLY HOUSING CREDIT AGEN- existing statutes affecting owners, fi- transient basis merely because it is rented CIES.—For purposes of this section, sub- nancing agencies, and low-income resi- on a month-by-month basis. sections (l) and (m) of section 42 shall apply. dents participating in one of HUD’s ‘‘(i) REGULATIONS.—The Secretary shall ‘‘(C) SPECIAL RULE FOR BUILDINGS HAVING 4 Section 8 multifamily rental subsidy OR FEWER UNITS.—In the case of any building prescribe such regulations as may be nec- essary or appropriate to carry out the pur- programs. which has 4 or fewer residential rental units, I have worked closely with the Maine no unit in such building shall be treated as poses of this section, including regulations— a supported elderly unit if the units in such ‘‘(1) dealing with— Congressional Delegation on this mat- building are owned by— ‘‘(A) projects which include more than 1 ter, as well as the Maine State Housing ‘‘(i) any individual who occupies a residen- building or only a portion of a building, Authority and several housing projects tial unit in such building, or ‘‘(B) buildings which are placed in service in Maine, and the U.S. Department of ‘‘(ii) any person who is related (within the in portions, ‘‘(2) providing for the application of this Housing and Urban Development— meaning of section 42(d)(2)(D)(iii)) to such in- HUD. At issue is HUD’s interpretation dividual. section to short taxable years, ‘‘(D) OWNER-OCCUPIED BUILDING HAVING 4 OR ‘‘(3) preventing the avoidance of the rules of Section 524 of the Multifamily As- FEWER UNITS ELIGIBLE FOR CREDIT WHERE DE- of this section, and sisted Housing Reform and Afford- VELOPMENT PLAN.— ‘‘(4) providing the opportunity for sup- ability Act of 1997 as it relates to the ‘‘(i) IN GENERAL.—Subparagraph (C) shall ported elderly housing credit agencies to renewal of Section 8 ‘‘moderate reha- not apply to the acquisition or rehabilitation correct administrative errors and omissions bilitation’’ contracts in Maine and of a building pursuant to a development plan with respect to allocations and record keep- ing within a reasonable period after their elsewhere. of action sponsored by a State or local gov- The effect of HUD’s interpretation of ernment or a qualified nonprofit organiza- discovery, taking into account the avail- tion (as defined in subsection (d)(5)(C)). ability of regulations and other administra- current law results in the application ‘‘(ii) LIMITATION ON CREDIT.—In the case of tive guidance from the Secretary.’’. of HUD ‘‘published Fair Market a building to which clause (i) applies, the ap- (b) CURRENT YEAR BUSINESS CREDIT CAL- Rents.’’ Such rents are often well plicable fraction shall not exceed 80 percent CULATION.—Section 38(b) of the Internal Rev- below the actual comparable market of the unit fraction. enue Code of 1986 (relating to current year rent. If this problem is not addressed, ‘‘(iii) CERTAIN UNRENTED UNITS TREATED AS business credit) is amended by striking and addressed soon, I am very con- ‘‘plus’’ at the end of paragraph (12), by strik- OWNER-OCCUPIED.—In the case of a building cerned that we could lose this afford- to which clause (i) applies, any unit which is ing the period at the end of paragraph (13) not rented for 90 days or more shall be treat- and inserting ‘‘, plus’’, and by adding at the able rental housing stock in Maine, re- ed as occupied by the owner of the building end the following: sulting in the displacement of the resi- as of the 1st day it is not rented. ‘‘(14) the supported elderly housing credit dents of these properties. ‘‘(3) APPLICATION TO ESTATES AND TRUSTS.— determined under section 42A(a).’’. The Maine Delegation worked with In the case of an estate or trust, the amount (c) LIMITATION ON CARRYBACK.—Subsection HUD over the last year to try to iden- of the credit determined under subsection (a) (d) of section 39 of the Internal Revenue Code tify an administrative solution to this and any increase in tax under subsection (i) of 1986 (relating to carryback and problem, but have been advised by HUD carryforward of unused credits) is amended shall be apportioned between the estate or that we must pursue a change in law to trust and the beneficiaries on the basis of by adding at the end the following: the income of the estate or trust allocable to ‘‘(10) NO CARRYBACK OF SUPPORTED ELDERLY enable the projects to obtain reim- each. HOUSING CREDIT BEFORE EFFECTIVE DATE.—No bursements at a level sufficient to sus- ‘‘(4) IMPACT OF TENANTS RIGHT OF 1ST RE- amount of unused business credit available tain operations. Accordingly, the legis- FUSAL TO ACQUIRE PROPERTY.— under section 42A may be carried back to a lation I am introducing today will cor- ‘‘(A) IN GENERAL.—No Federal income tax taxable year beginning on or before the date rect the portion of the statute that benefit shall fail to be allowable to the tax- of the enactment of this paragraph.’’. could result in the loss of this critical payer with respect to any qualified sup- (d) CONFORMING AMENDMENTS.— ported elderly building merely by reason of a (1) Section 55(c)(1) of the Internal Revenue housing stock. right of 1st refusal held by the tenants (in Code of 1986 is amended by inserting ‘‘or sub- The program involved is the Section cooperative form or otherwise) or resident section (f) or (g) of section 42A’’ after ‘‘sec- 8 Moderate Rehabilitation program, management corporation of such building or tion 42’’. which is administered by local and by a qualified nonprofit organization (as de- (2) Subsections (i)(c)(3), (i)(c)(6)(B)(i), and state housing agencies throughout the fined in subsection (d)(5)(C)) or government (k)(1) of section 469 of such Code are each nation. Existing law, contained in Sec- agency to purchase the property after the amended by inserting ‘‘or 42A’’ after ‘‘sec- tion 524 of the Multifamily Assisted close of the compliance period for a price tion 42’’. Housing Reform and Affordability Act (3) Section 772(a) of such Code is amended which is not less than the minimum pur- of 1997, as amended—MAHRA—regard- chase price determined under subparagraph by striking ‘‘and’’ at the end of paragraph (B). (10), by redesignating paragraph (11) as para- ing renewal of expiring project-based ‘‘(B) MINIMUM PURCHASE PRICE.—For pur- graph (12), and by inserting after paragraph Section 8 contracts, treats contracts poses of subparagraph (A), the minimum pur- (10) the following: under the Moderate Rehabilitation

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00206 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S13979 Program in a fundamentally different newed at rents not exceeding the lower pacted by mental health, mental retar- way from contracts under the New of current rents, as adjusted by an op- dation and/or substance abuse issues. Construction, Substantial Rehabilita- erating cost adjustment factor, and a This change in population served has tion, and Loan Management Set-Aside ‘‘budget-based rent’’ approved by HUD, increased the total independence of the programs. notwithstanding that such rents may project on project-based assistance if it Section 524(b)(3) of MAHRA provides exceed market rents in the area. is to continue to serve this population. a separate and distinct formula for cal- The effect of the HUD ruling that The only feasible avenue to financial culating renewal rents for expiring Section 524(b)(3) provides the exclusive survival of this facility, much less to contracts under the Moderate Rehabili- authority for renewing expiring con- its continued ability to serve its spe- tation program. The formula is more tracts in the Moderate Rehabilitation cial population, is availability of ‘‘ex- restrictive than the formula applicable program is that ‘‘exception’’ project ception’’ project treatment. to expiring contracts under other Sec- treatment under Section 524(b)(1) and Maison Marcotte is a 128-unit con- tion 8 programs, based on an assump- (2) is made unavailable for Moderate gregate care facility located in Lewis- tion that the debt service payments on Rehabilitation projects. The irony of ton. The building was built originally the original moderate rehabilitation fi- this is that while the majority of Sec- in the 1920s as a nursing home on a nancing would not be a continuing ob- tion 8 New Construction and Substan- health care campus owned by the Sis- ligation of the project owner after ex- tial Rehabilitation projects, and of ters of Charity Health System. piration of the original subsidy con- course all Loan Management Set-Aside Following construction of a new tract. projects, are financed by FHA-insured nursing home on the campus in the The assumption was correct as to mortgages—and therefore non-insured early 1980s, the Health System ground many projects under the Moderate Re- projects are truly the ‘‘exception’’ leased the former nursing home to a habilitation program, but it is not true under those programs—the opposite is for-profit development group which as to some significant projects serving true in the Moderate Rehabilitation renovated the facility into several dis- particularly vulnerable populations, program. crete uses, including a kitchen and caf- including two very important commu- Information provided by HUD indi- eteria facility for the health care cam- nity projects located in Maine, which I cates that not more than approxi- pus, a wing of physician offices, and 128 will describe later. mately 13 percent of all units ever sub- one-bedroom congregate care units. Perhaps an even greater concern sidized under the Moderate Rehabilita- The renovation was assisted by a 110- than the formula itself, however, is a tion program were in projects financed unit Moderate Rehabilitation award by ruling by HUD’s Office of General by FHA-insured mortgages. Non-in- the Lewiston Housing Authority; 18 Counsel that Section 524(b)(3) presents sured mortgages, therefore, were the units are private-pay. the exclusive method for renewal of ex- rule, not the exception, in the Mod- A nonprofit subsidiary of Sisters of piring contracts under the Moderate erate Rehabilitation program. Charity Health System took over pos- Rehabilitation program. In order to ap- The impact of this circumstance is session and operation of the facility preciate the drastic and problematic well illustrated by two projects in following a Chapter 11 reorganization results of this opinion, it is necessary Maine, both of which represent vital of the for-profit developer in the late to understand the relationship between community resources for highly vul- 1980s. The bank debt on the facility was the Section 8 renewal legislation and nerable low-income populations. refinanced in 1993 by a tax-exempt bond the Mark-to-Market program, also en- Loring House is a 104-unit develop- financed first mortgage loan made by acted by MAHRA. ment in Portland. The building origi- the Maine State Housing Authority According to HUD, housing subsidy nally was the Portland City Hospital, which matures in 2023. The mortgage contracts are expiring on thousands of which was closed by the City in the financing is not FHA-insured. The privately owned multifamily properties early 1980s. It was converted to a resi- Moderate Rehabilitation HAP Contract with federally insured mortgages. dential facility for elderly and handi- expires October 31, 2001. Many of these contracts set rents at capped residents with significant pub- The current Moderate Rehabilitation amounts higher than those of the local lic participation and support, including contract rents for the one-bedroom market. As these subsidy contracts ex- tax-exempt bond first mortgage financ- units are substantially lower than the pire, the Mark-to-Market program will ing by the Maine State Housing Au- private-pay rents for similar units in reduce rents to market levels and will thority, Moderate Rehabilitation Sec- the facility. Nevertheless, contract re- restructure existing debt to levels sup- tion 8 rental subsidies from the Port- newal pursuant to the existing Section portable by these rents. land and Westbrook public housing au- 524(b)(3) formula would result in a 20- The basic principle of this integrated thorities, and second mortgage oper- percent rent reduction, which clearly legislative structure is that for ating deficit financing by the Portland would threaten survival of the project. projects financed by FHA-insured Housing Development Corporation. The financial risk, again, is borne sole- mortgages, expiring Section 8 con- The Loring House Section 8 contract ly by the Maine State Housing Author- tracts which are subsidizing rents high- expired in stages commencing Decem- ity. er than market rents in the area will ber 31, 2000. The Loring House mort- The property might appear to have be renewed at rents reduced to a level gage financing is not FHA-insured, but the option of opting out and converting not higher than the market rents. based on the HUD opinion I described, to all private-pay units at the higher Where this reduced rent will not sup- ‘‘exception’’ project treatment was de- rental, but that is not the desire of the port debt service on the FHA-insured nied. Under the Section 524(b)(3) for- nonprofit operator nor would it be con- mortgage, the mortgage will be re- mula, the Section 8 contract rents were sistent with the low-income use re- structured pursuant to Mark-to-Mar- reduced approximately 14 percent on strictions arising from the tax-exempt ket. The basic tradeoff is that while renewal—this notwithstanding that the bond issue. The only feasible outcome the Federal Government may bear project was already incurring substan- for this facility which would permit some cost in the FHA insurance fund, tial operating deficits, supported by continuance of its commitment to very it will be a lesser cost than continuing public operating deficit financing, even low-income elderly residents is renewal to subsidize above-market rents. under the previous rents. The ultimate at ‘‘exception rent’’ pursuant to Sec- However, not all Section 8 projects financial risk on this development is tion 524(b)(1). are financed by FHA-insured mort- borne by the Maine State Housing Au- I find it inconceivable that Congress gages. Many, instead, are financed by thority. consciously intended to impose the fi- State housing agency bond-financed Loring House is an important com- nancial impact of Section 8 rent reduc- mortgages without FHA insurance, and munity resource aside from the sub- tions in cases such as these onto State some are even conventionally financed. stantial public stake in its financing. housing finance agencies. I also have The legislation provides, therefore, for Since 1985, the resident population has no reason to think that the cir- an important ‘‘exception’’ to the re- undergone a significant trans- cumstances of these two projects, in quirement that rents be reduced upon formation, attributable largely to dein- which state housing agencies have un- renewal to market rents. Under Sec- stitutionalization of two state mental dertaken the financing risk of long- tions 524(b)(1) and (2), Section 8 con- institutions and concentration of term mortgages backed by short-term tracts for ‘‘exception’’ projects—which State-supported comprehensive mental rental subsidy contracts because of the are principally projects not eligible for health services in the Portland area. important public purposes of the Mark-to-Market because their mort- It is estimated that currently 70 per- projects, are unique to the State of gages are not FHA-insured—may be re- cent of the tenant population are im- Maine.

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00207 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S13980 CONGRESSIONAL RECORD — SENATE December 20, 2001 The legislation I am introducing from the ability to receive renewal tions, this is too restrictive. This re- today, therefore, would correct this in- rents increased to market rent levels. quirement inhibits firms who wish to equity by simply striking subsection The overall effect of my legislation is hire individuals with specialized skills (b)(3) of Section 524. Under this legisla- to place expiring contracts under the to meet the needs of clients in the tion, the renewal of expiring contracts Moderate Rehabilitation program on United States. A shorter prior employ- in the Moderate Rehabilitation pro- an equal footing with other expiring ment period would allow companies to gram would be governed by the same Section 8 contracts having similar meet the needs of their clients in a renewal rent provisions as are applica- characteristics in terms of comparison more timely manner. ble to expiring contracts in the New of contract rents with market rents I thank the House of Representatives Construction and Substantial Rehabili- and in terms of financing source—HUD- and especially Congressman GEKAS, tation programs, including the avail- insured or non-insured. Chairman of the House Subcommittee ability of ‘‘exception’’ project rents I believe that preservation of these on Immigration and Claims, for their where the project financing is not critical housing units is an imperative hard work on these bills. Given the FHA-insured. to my constituents and the commu- work between the House and Senate on Finally, the legislation would also nities I represent, as well as commu- these bills, I feel comfortable urging strike one other current provision of nities and projects elsewhere. As such, my colleagues to give these issues all the Section 8 renewal legislation which I urge my colleagues to join me in sup- due attention and support these meas- singles out Moderate Rehabilitation porting this important legislation. ures. projects for unfavorable treatment and, more importantly, excludes Moderate By Mr. HATCH: By Mr. HATCH: Rehabilitation projects from the im- S. 1889. A bill to provide for work au- S. 1891. A bill to extend the basic portant policy preference for encour- thorization for nonimmigrant spouses pilot program for employment eligi- aging Section 8 project owners to con- of intracompany transferees, and to re- bility verification, and for other pur- tinue their participation in the pro- duce the period of time during which poses; to the Committee on the Judici- gram and thereby maintain the avail- certain intracompany transferees have ary. ability of the units for low-income oc- to be continuously employed before ap- Mr. HATCH. Mr. President, I stand to cupancy. plying for admission to the United introduce a companion bill to H.R. An essential tool for the preservation States; to the Committee on the Judi- 3030, the House bill that would extend a program, as strengthened by amend- ciary. pilot program for employment eligi- ments to MAHRA enacted in 1999, is By Mr. HATCH: bility verification of non-citizens. This the ability to permit Section 8 owners S. 1890. A bill to provide for work au- bill would extend the program, set to currently receiving below-market rents thorization for nonimmigrant spouses expire this year, for two more years. under expiring contracts to receive of treaty traders and treaty investors; This basic pilot program, available to rent increases upon renewal up to the to the Committee on the Judiciary. employers in California, Florida, Illi- level of market rents in the area, in ex- Mr. HATCH. Mr. President, I wish to nois, Nebraska, New York, and Texas, change for a commitment to remain in introduce companion measures to two was authorized in 1996, and has proved the program for not less than an addi- House bills that would end the barring to be an incredibly effective resource tional 5 years. Expiring contracts of the spouses of ‘E’ and ‘L’ non- since them. The program allows par- under the Moderate Rehabilitation pro- immigrant visa holders from work au- ticipating employers to electronically gram were excluded from this author- thorization while they are in the access certain government databases in ity. However, from the standpoint of United States. The House of Represent- order to verify the employment author- lower-income families needing sub- atives passed H.R. 2277 and H.R. 2278 ization of non-citizens. Electronic con- sidized housing opportunities in their with broad bipartisan support earlier firmation of this information provides communities, I believe the preserva- this year and the Senate Judiciary a critical tool for employers to ensure tion of units which happen to be sub- Committee approved the House that they are not hiring unauthorized sidized under the Moderate Rehabilita- versions of both bills by unanimous aliens. This program allows employers tion program is no less vital than pres- consent earlier today. to protect themselves from the em- ervation of units under other subdivi- The companion to H.R. 2277 amends ployer sanction provisions of the Immi- sions of the Section 8 program. the Immigration and Nationality Act gration and Nationality Act, while pro- The Section 8 Moderate Rehabilita- to authorize the husbands and wives of viding meaningful deterrence to would- tion program, while relatively small in treaty traders or treaty investors be employers who lack appropriate au- comparison to the New Construction or working in the United States, or E visa thorization from the INS. Substantial Rehabilitation programs, holders, to work themselves. The com- During this time of increased na- is nevertheless widespread throughout panion to H.R. 2278 is very similar, tional security, we can all appreciate the nation, in both large and small granting employment authorization to any tool that will facilitate enforce- communities. It also has suffered a the spouses of intracompany transfers, ment of our immigration laws. After marked attrition of units, presumably or L visa holders. This measure would communication between the House and due in large part to owner opt-outs in also allow individuals to apply for L the Senate on this issue, and the favor- recent years. Information provided by visas after six months, rather than one able report from the Senate Judiciary HUD indicates that out of the total of year, of employment with the company Committee this morning, I have little approximately 120,000 units that we as- with which they are working in the doubt that my colleagues in the Senate sisted under the Moderate Rehabilita- United States. I believe that both of will recognize the useful nature of the tion program, 52,000 units remained in these bills are very reasonable and de- Pilot Program and support its exten- the program in May 2000. serve the support of the Senate. sion. HUD information also indicated that Both pieces of legislation would end 113 separate housing agencies in 42 practices that deserve change as they By Mr. SPECTER: States across the nation plus Puerto currently stand. It is not right to force S.J. Res. 30. A joint resolution pro- Rico, including State as well as local one spouse in a family to forgo employ- posing an amendment to the Constitu- agencies, had 100 or more units under ment simply because the other is work- tion of the United States regarding the contract in May 2000. Since many if not ing in the United States. Granting em- appointment of individuals to serve as most Moderate Rehabilitation project ployment authorization to the spouses Members of the House of Representa- owners receive rents under their origi- of E and L visa recipients makes it tives in the event a significant number nal contracts that are lower than mar- easier for foreign countries and multi- of Members are unable to serve at any ket rents, it cannot be doubted that national companies to persuade highly time because of death or incapacity; to the ability to receive market rents qualified employees, who are used to the Committee on the Judiciary. could encourage many owners to re- having both spouses actively employed, Mr. SPECTER. Mr. President, I have main in the program and to continue to relocate to the United States. sought recognition today to discuss to provide affordable housing opportu- The time requirement for L visa ap- language for a proposed constitutional nities for their communities. plicants also warrants change. Current amendment that would provide for the Accordingly, the legislation I am in- law requires that an L visa not be appointment of temporary Representa- troducing today would also strike the granted unless the applicant has been tives by a Governor if fifty percent or current exclusion of contracts under employed for at least 1 year with the more of the members of the House were the Moderate Rehabilitation program employer in question. In many situa- killed or incapacitated. I place this

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00208 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S13981 language in the RECORD not with the the ‘‘replaced’’ member. This stipula- (1) congratulates the people of Kazakhstan intention of urging its passage this ses- tion would ensure that the citizens of a and its government, on the tenth anniver- sion, but rather to afford my col- congressional district would continue sary of its independence; leagues an opportunity to offer their to be represented by a Congressperson (2) welcomes the partnership between the Government of Kazakhstan and United comments and suggestions, and to af- from the same party. States companies in developing its natural ford them the opportunity to consider While I understand that this is an resources in an environmentally sustainable co-sponsoring this proposed amend- issue we would rather not grapple with, manner; ment. it is imperative that we deliberate and (3) applauds the cooperation between the The events of September 11 and the ensure that, in case of a catastrophe, Government of Kazakhstan and the Govern- subsequent anthrax attacks directed our system of governance will continue ment of the United States on matters of na- against members of Congress and other to remain strong and stable. Similar tional security and is grateful for the full co- Americans highlight the very real pos- legislation has been introduced in the operation of Kazakhstan in the war against sibility that the Senate and House of international terrorism; House of Representatives. I welcome (4) encourages the Government of Representatives could suffer cata- comments from my colleagues in both Kazakhstan to continue to make progress in strophic casualties that would prevent the House and Senate and look forward the areas of institutionalizing democracy, either or both bodies from fulfilling to passing meaningful legislation when respecting human rights, reducing corrup- their essential roles in the governance Congress returns from its winter re- tion, and implementing broad-based market of our Nation. Despite the morbidity of cess. reforms; and such a scenario, it is essential that we (5) looks forward to further enhancing the put in place a contingency plan for the f economic, political, and national security effective continuance of our democ- cooperation between Kazakhstan and the SUBMITTED RESOLUTIONS United States. racy. The Seventeenth Amendment to the Constitution allows for the tem- f porary replacement of Senators by ap- SENATE RESOLUTION 195—TEN- SENATE RESOLUTION 194—CON- pointment by the Governor of their re- DERING THE THANKS OF THE GRATULATING THE PEOPLE AND spective States. However, no such pro- SENATE TO THE VICE PRESI- GOVERNMENT OF KAZAKHSTAN vision applies to members of the House. DENT FOR THE COURTEOUS, DIG- ON THE TENTH ANNIVERSARY Only a proposed amendment to the NIFIED, AND IMPARTIAL MAN- OF THE INDEPENDENCE OF THE United States Constitution would rem- NER IN WHICH HE HAS PRE- REPUBLIC OF KAZAKHSTAN edy this deficiency. SIDED OVER THE DELIBERA- The only means to replace members Mr. BROWNBACK submitted the fol- TIONS OF THE SENATE lowing resolution; which was consid- of the House is by special election. Ar- Mr. DASCHLE (for himself and Mr. ticle 1, Section 2, clause 14, states that ered and agreed to: LOTT) submitted the following resolu- ‘‘[w]hen vacancies happen in the Rep- S. RES. 194 tion; which was considered and agreed resentation from any State, the Execu- Whereas, on December 16, 2001, Kazakhstan to: tive Authority thereof shall issue Writs will celebrate 10 years of independence; S. RES. 195 of Election to fill such Vacancies.’’ My Whereas, since gaining its independence, legislative language proposes that if at Kazakhstan has made significant strides in Resolved, That the thanks of the Senate are becoming a stable and peaceful nation that hereby tendered to the Honorable RICHARD B. any time, fifty percent or more of the CHENEY, Vice President of the United States Members of the House of Representa- provides economic opportunity for its peo- ple; and President of the Senate, for the cour- tives are unable to carry out their du- Whereas Kazakhstan continues to face po- teous, dignified, and impartial manner in ties because of death or incapacity, litical, ethnic, economic, and environmental which he has presided over its deliberations each Governor of a State represented challenges; during the first session of the One Hundred by such Member would have the power Whereas Kazakhstan plays an important Seventh Congress. to appoint an otherwise qualified indi- role in Central Asia by virtue of its large ter- f vidual to take the place of the Member ritory, ample natural resources, and stra- tegic location; SENATE RESOLUTION 196—TEN- as soon as practicable after certifi- DERING THE THANKS OF THE cation of the Member’s death or inca- Whereas the Department of Energy esti- mates that Kazakhstan has up to SENATE TO THE PRESIDENT PRO pacity. Article I, Section 4, clause I 17,600,000,000 barrels of proven petroleum re- TEMPORE FOR THE COURTEOUS, states that ‘‘a Majority of each [House] serves and up to 83,000,000,000,000 cubic feet of DIGNIFIED, AND IMPARTIAL shall constitute a Quroum to do Busi- proven natural gas reserves; MANNER IN WHICH HE HAS PRE- ness.’’ Accordingly, this extraordinary Whereas Kazakhstan has successfully SIDED OVER THE DELIBERA- measure giving a Governor the power partnered with United States companies in TIONS OF THE SENATE of appointment of a replacement Mem- the development of its petroleum and nat- ber would be triggered, when due to ural gas resources; Mr. DASCHLE (for himself and Mr. death or incapacity, the House would Whereas in November 2001, the Caspian LOTT) submitted the following resolu- Pipeline Consortium was inaugurated, pro- not have a quorum to conduct business. tion; which was considered and agreed viding the first major pipeline to bring the to: My proposed amendment requires an Caspian energy resources to the world mar- S. RES. 196 individual appointed to take the place ket; of the Member to serve until a Member Whereas the United States private sector Resolved, That the thanks of the Senate are is elected to fill the vacancy by a spe- contributed nearly 50 percent of the hereby tendered to the Honorable ROBERT C. cial election to be held at any time $2,600,000,000 Caspian Pipeline Consortium in- BYRD, President pro tempore of the Senate, for the courteous, dignified, and impartial during the 90-day period which begins vestment; Whereas Kazakhstan, under the leadership manner in which he has presided over its de- on the date of the individual’s appoint- liberations during the first session of the ment, except that if a regularly of President Nursultan Nazarbaev, has fully cooperated with the United States on na- One Hundred Seventh Congress. schuled general election for the office tional security concerns, including com- f was scheduled to be held during such bating nuclear proliferation, international SENATE RESOLUTION 197—TO COM- period or 30 days thereafter, no special crime, and narcotics trafficking; election would be held, and the Mem- Whereas, since September 11, 2001, coopera- MEND THE EXEMPLARY LEAD- ber elected in such regularly scheduled tion with Kazakhstan and other Central ERSHIP OF THE MAJORITY general election would fill the vacancy Asian States, specifically Tajikistan and Uz- LEADER upon election. Further, my proposed bekistan, has become even more important Mr. LOTT submitted the following amendment allows for the appointed to the ability of the United States to protect resolution; which was considered and the United States homeland; and individual to be a candidate in the spe- Whereas Kazakhstan has extended all due agreed to: cial election or regularly scheduled cooperation to the United States in fighting S. RES. 197 general election. a war against international terrorism: Now, Resolved, That the thanks of the Senate are The Governor would be required to therefore, be it hereby tendered to the distinguished Major- appoint a person of the same party as Resolved, That the Senate— ity Leader, the Senator from South Dakota,

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the Honorable THOMAS A. DASCHLE, for his Justice for fiscal year 2002, and for other pur- ‘‘(A) with respect to the taxable year in exemplary leadership and the cooperative poses. which falls the date of death, and and dedicated manner in which he has per- f ‘‘(B) with respect to any prior taxable year formed his leadership responsibilities in the in the period beginning with the last taxable conduct of Senate business during the first TEXT OF AMENDMENTS year ending before the taxable year in which session of the 107th Congress. SA 2689. Mr. DASCHLE proposed an the wounds, injury, or illness referred to in f amendment to the bill H.R. 2884, an act paragraph (3) were incurred. to amend the Internal Revenue Code of ‘‘(2) $10,000 MINIMUM BENEFIT.—If, but for SENATE RESOLUTION 198—TO COM- this paragraph, the amount of tax not im- MEND THE EXEMPLARY LEAD- 1986 to provide tax relief for victims of posed by paragraph (1) with respect to a ERSHIP OF THE REPUBLICAN the terrorist attacks against the specified terrorist victim is less than $10,000, LEADER United States, and for other purposes; then such victim shall be treated as having as follows: made a payment against the tax imposed by Mr. DASCHLE submitted the fol- In lieu of the matter proposed to be in- this chapter for such victim’s last taxable lowing resolution; which was consid- serted by the House amendment year in an amount equal to the excess of ered and agreed to: to the text of the bill, insert the $10,000 over the amount of tax not so im- S. RES. 198 posed. following: ‘‘(3) TAXATION OF CERTAIN BENEFITS.—Sub- Resolved, That the thanks of the Senate are SECTION 1. SHORT TITLE; ETC. hereby tendered to the distinguished Repub- ject to such rules as the Secretary may pre- (a) SHORT TITLE.—This Act may be cited as lican Leader, the Senator from Mississippi, scribe, paragraph (1) shall not apply to the the ‘‘Victims of Terrorism Tax Relief Act of amount of any tax imposed by this chapter RENT LOTT, for his exem- the Honorable T 2001’’. plary leadership and the cooperative and which would be computed by only taking (b) AMENDMENT OF 1986 CODE.—Except as into account the items of income, gain, or dedicated manner in which he has performed otherwise expressly provided, whenever in his leadership responsibilities in the conduct other amounts attributable to— this Act an amendment or repeal is ex- ‘‘(A) deferred compensation which would of Senate business during the first session of pressed in terms of an amendment to, or re- the 107th Congress. have been payable after death if the indi- peal of, a section or other provision, the ref- vidual had died other than as a specified ter- f erence shall be considered to be made to a rorist victim, or section or other provision of the Internal ‘‘(B) amounts payable in the taxable year AMENDMENTS SUBMITTED AND Revenue Code of 1986. PROPOSED which would not have been payable in such (c) TABLE OF CONTENTS.—The table of con- taxable year but for an action taken after SA 2689. Mr. DASCHLE proposed an amend- tents for this Act is as follows: September 11, 2001. ment to the bill H.R. 2884, An act to amend Sec. 1. Short title; etc. ‘‘(4) SPECIFIED TERRORIST VICTIM.—For pur- the Internal Revenue Code of 1986 to provide TITLE I—VICTIMS OF TERRORISM TAX poses of this subsection, the term ‘specified tax relief for victims of the terrorist attacks RELIEF terrorist victim’ means any decedent— against the United States, and for other pur- Subtitle A—Relief Provisions for Victims of ‘‘(A) who dies as a result of wounds or in- poses. Terrorist Attacks jury incurred as a result of the terrorist at- SA 2690. Mr. HOLLINGS (for himself, Mr. tacks against the United States on April 19, MCCAIN, and Mr. GRAHAM) proposed an Sec. 101. Income taxes of victims of terrorist 1995, or September 11, 2001, or amendment to the bill S. 1214, to amend the attacks. ‘‘(B) who dies as a result of illness incurred Merchant Marine Act, 1936, to establish a Sec. 102. Exclusion of certain death benefits. as a result of an attack involving anthrax program to ensure greater security for Sec. 103. Estate tax reduction. occurring on or after September 11, 2001, and United States seaports, and for other pur- Sec. 104. Payments by charitable organiza- before January 1, 2002. poses. tions treated as exempt pay- Such term shall not include any individual SA 2691. Mr. REID (for Mr. ALLEN) pro- ments. identified by the Attorney General to have posed an amendment to the bill S. 1858, to Sec. 105. Exclusion of certain cancellations been a participant or conspirator in any such permit the closed circuit televising of the of indebtedness. attack or a representative of such an indi- criminal trial of Zacarias Moussaoui for the Subtitle B—Other Relief Provisions vidual.’’. victims of September 11th. Sec. 111. Exclusion for disaster relief pay- (b) CONFORMING AMENDMENTS.— SA 2692. Mr. REID (for Mr. FRIST (for him- ments. (1) Section 5(b)(1) is amended by inserting self, Mr. KENNEDY, and Mr. GREGG)) proposed Sec. 112. Authority to postpone certain ‘‘and victims of certain terrorist attacks’’ an amendment to the bill H.R. 3448, to im- deadlines and required actions. before ‘‘on death’’. prove the ability of the United States to pre- Sec. 113. Application of certain provisions to (2) Section 6013(f)(2)(B) is amended by in- vent, prepare for, and respond to bioter- terroristic or military actions. serting ‘‘and victims of certain terrorist at- rorism and other public health emergencies. Sec. 114. Clarification of due date for airline tacks’’ before ‘‘on death’’. SA 2693. Mr. REID (for Mr. BROWNBACK) excise tax deposits. proposed an amendment to the bill S. Res. Sec. 115. Treatment of certain structured (c) CLERICAL AMENDMENTS.— 194, congratulating the people and govern- settlement payments. (1) The heading of section 692 is amended ment of Kazakhstan on the tenth anniver- Sec. 116. Personal exemption deduction for to read as follows: sary of the independence of the Republic of certain disability trusts. ‘‘SEC. 692. INCOME TAXES OF MEMBERS OF Kazakhstan. TITLE II—DISCLOSURE OF TAX INFOR- ARMED FORCES AND VICTIMS OF SA 2694. Mr. REID (for Mr. SMITH, of New MATION IN TERRORISM AND NATIONAL CERTAIN TERRORIST ATTACKS ON Hampshire) proposed an amendment to the SECURITY INVESTIGATIONS DEATH.’’. bill S. 990, to amend the Pittman-Robertson (2) The item relating to section 692 in the Sec. 201. Disclosure of tax information in Wildlife Restoration Act to improve the pro- table of sections for part II of subchapter J terrorism and national security visions relating to wildlife conservation and of chapter 1 is amended to read as follows: restoration programs, and for other pur- investigations. poses. TITLE III—NO IMPACT ON SOCIAL ‘‘Sec. 692. Income taxes of members of Armed SA 2695. Mr. REID (for Mr. BIDEN (for him- SECURITY TRUST FUNDS Forces and victims of certain self and Mr. HELMS)) proposed an amendment Sec. 301. No impact on social security trust terrorist attacks on death.’’. to the bill S. 1803, to authorize appropria- funds. tions under the Arms Export Control Act and (d) EFFECTIVE DATE; WAIVER OF LIMITA- TITLE I——VICTIMS OF TERRORISM TAX the Foreign Assistance Act of 1961 for secu- TIONS.— RELIEF rity assistance for fiscal years 2002 and 2003, (1) EFFECTIVE DATE.—The amendments and for other purposes. Subtitle A—Relief Provisions for Victims of made by this section shall apply to taxable SA 2696. Mr. REID (for Mrs. CLINTON) pro- Terrorist Attacks years ending before, on, or after September posed an amendment to the bill S. 1637, to SEC. 101. INCOME TAXES OF VICTIMS OF TER- 11, 2001. waive certain limitations in the case of use RORIST ATTACKS. (2) WAIVER OF LIMITATIONS.—If refund or of the emergency fund authorized by section (a) IN GENERAL.—Section 692 (relating to credit of any overpayment of tax resulting 125 of title 23, United States Code, to pay the income taxes of members of Armed Forces on from the amendments made by this section costs of projects in response to the attack on death) is amended by adding at the end the is prevented at any time before the close of the World Trade Center in New York City following new subsection: the 1-year period beginning on the date of that occurred on September 11, 2001. ‘‘(d) INDIVIDUALS DYING AS A RESULT OF the enactment of this Act by the operation SA 2697. Mr. REID (for Mr. LEAHY (for him- CERTAIN ATTACKS.— of any law or rule of law (including res judi- self, Mr. KENNEDY, and Mr. HATCH)) proposed ‘‘(1) IN GENERAL.—In the case of a specified cata), such refund or credit may nevertheless an amendment to the bill H.R. 2215, to au- terrorist victim, any tax imposed by this be made or allowed if claim therefor is filed thorize appropriations for the Department of chapter shall not apply— before the close of such period.

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00210 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S13983 SEC. 102. EXCLUSION OF CERTAIN DEATH BENE- ‘‘If the amount with re- The tentative tax is: (1) payments made by an organization de- FITS. spect to which the scribed in section 501(c)(3) of such Code by (a) IN GENERAL.—Section 101 (relating to tentative tax to be reason of the death, injury, wounding, or ill- certain death benefits) is amended by adding computed is: ness of an individual incurred as the result of Over $700,000 but not over $22,500 plus 6 percent of at the end the following new subsection: the terrorist attacks against the United ‘‘(i) CERTAIN EMPLOYEE DEATH BENEFITS $900,000. the excess over $700,000. Over $900,000 but not over $34,500 plus 7 percent of States on September 11, 2001, or an attack PAYABLE BY REASON OF DEATH OF CERTAIN $1,100,000. the excess over $900,000. involving anthrax occurring on or after Sep- TERRORIST VICTIMS.— Over $1,100,000 but not $48,500 plus 8 percent of tember 11, 2001, and before January 1, 2002, ‘‘(1) IN GENERAL.—Gross income does not over $1,600,000. the excess over shall be treated as related to the purpose or include amounts (whether in a single sum or $1,100,000. function constituting the basis for such or- otherwise) paid by an employer by reason of Over $1,600,000 but not $88,500 plus 9 percent of ganization’s exemption under section 501 of the death of an employee who is a specified over $2,100,000. the excess over $1,600,000. such Code if such payments are made in good terrorist victim (as defined in section Over $2,100,000 but not $133,500 plus 10 percent of faith using a reasonable and objective for- 692(d)(4)). over $2,600,000. the excess over mula which is consistently applied, and ‘‘(2) LIMITATION.— $2,100,000. (2) in the case of a private foundation (as ‘‘(A) IN GENERAL.—Subject to such rules as Over $2,600,000 but not $183,500 plus 11 percent of defined in section 509 of such Code), any pay- the Secretary may prescribe, paragraph (1) over $3,100,000. the excess over ment described in paragraph (1) shall not be shall not apply to amounts which would have $2,600,000. Over $3,100,000 but not $238,500 plus 12 percent of treated as made to a disqualified person for been payable after death if the individual over $3,600,000. the excess over purposes of section 4941 of such Code. had died other than as a specified terrorist $3,100,000. victim (as so defined). Over $3,600,000 but not $298,500 plus 13 percent of (b) EFFECTIVE DATE.—This section shall apply to payments made on or after Sep- ‘‘(B) EXCEPTION.—Subparagraph (A) shall over $4,100,000. the excess over not apply to incidental death benefits paid $3,600,000. tember 11, 2001. Over $4,100,000 but not $363,500 plus 14 percent of SEC. 105. EXCLUSION OF CERTAIN CANCELLA- from a plan described in section 401(a) and over $5,100,000. the excess over TIONS OF INDEBTEDNESS. exempt from tax under section 501(a). $4,100,000. ‘‘(3) TREATMENT OF SELF-EMPLOYED INDIVID- Over $5,100,000 but not $503,500 plus 15 percent of (a) IN GENERAL.—For purposes of the Inter- UALS.—For purposes of paragraph (1), the over $6,100,000. the excess over nal Revenue Code of 1986— term ‘employee’ includes a self-employed in- $5,100,000. (1) gross income shall not include any Over $6,100,000 but not $653,500 plus 16 percent of amount which (but for this section) would be dividual (as defined in section 401(c)(1)).’’. over $7,100,000. the excess over (b) EFFECTIVE DATE; WAIVER OF LIMITA- $6,100,000. includible in gross income by reason of the TIONS.— Over $7,100,000 but not $813,500 plus 17 percent of discharge (in whole or in part) of indebted- (1) EFFECTIVE DATE.—The amendment over $8,100,000. the excess over ness of any taxpayer if the discharge is by made by this section shall apply to taxable $7,100,000. reason of the death of an individual incurred years ending before, on, or after September Over $8,100,000 but not $983,500 plus 18 percent of as the result of the terrorist attacks against 11, 2001. over $9,100,000. the excess over $8,100,000. the United States on September 11, 2001, or (2) WAIVER OF LIMITATIONS.—If refund or Over $9,100,000 but not $1,163,500 plus 19 percent as the result of illness incurred as a result of credit of any overpayment of tax resulting over $10,100,000. of the excess over an attack involving anthrax occurring on or from the amendments made by this section $9,100,000. after September 11, 2001, and before January is prevented at any time before the close of Over $10,100,000 ...... $1,353,500 plus 20 percent 1, 2002, and the 1-year period beginning on the date of of the excess over (2) return requirements under section 6050P $10,100,000. the enactment of this Act by the operation of such Code shall not apply to any discharge of any law or rule of law (including res judi- ‘‘(d) DETERMINATION OF UNIFIED CREDIT.— described in paragraph (1). In the case of an estate to which this section cata), such refund or credit may nevertheless (b) EFFECTIVE DATE.—This section shall applies, subsection (a) shall not apply in de- be made or allowed if claim therefor is filed apply to discharges made on or after Sep- termining the credit under section 2010.’’. before the close of such period. tember 11, 2001, and before January 1, 2002. SEC. 103. ESTATE TAX REDUCTION. (b) CONFORMING AMENDMENTS.— (a) IN GENERAL.—Section 2201 is amended (1) Section 2011 is amended by striking sub- Subtitle B—Other Relief Provisions section (d) and by redesignating subsections to read as follows: SEC. 111. EXCLUSION FOR DISASTER RELIEF PAY- ‘‘SEC. 2201. COMBAT ZONE-RELATED DEATHS OF (e), (f), and (g) as subsections (d), (e), and (f), MENTS. respectively. MEMBERS OF THE ARMED FORCES (a) IN GENERAL.—Part III of subchapter B (2) Section 2053(d)(3)(B) is amended by AND DEATHS OF VICTIMS OF CER- of chapter 1 (relating to items specifically TAIN TERRORIST ATTACKS. striking ‘‘section 2011(e)’’ and inserting ‘‘sec- excluded from gross income) is amended by ‘‘(a) IN GENERAL.—Unless the executor tion 2011(d)’’. redesignating section 139 as section 140 and elects not to have this section apply, in ap- (3) Paragraph (9) of section 532(c) of the plying sections 2001 and 2101 to the estate of inserting after section 138 the following new Economic Growth and Tax Relief Reconcili- section: a qualified decedent, the rate schedule set ation Act of 2001 is repealed. forth in subsection (c) shall be deemed to be (c) CLERICAL AMENDMENT.—The item relat- ‘‘SEC. 139. DISASTER RELIEF PAYMENTS. the rate schedule set forth in section 2001(c). ing to section 2201 in the table of sections for ‘‘(a) GENERAL RULE.—Gross income shall ‘‘(b) QUALIFIED DECEDENT.—For purposes of subchapter C of chapter 11 is amended to not include any amount received by an indi- this section, the term ‘qualified decedent’ read as follows: vidual as a qualified disaster relief payment. means— ‘‘(b) QUALIFIED DISASTER RELIEF PAYMENT ‘‘(1) any citizen or resident of the United ‘‘Sec. 2201. Combat zone-related deaths of members of the Armed Forces DEFINED.—For purposes of this section, the States dying while in active service of the term ‘qualified disaster relief payment’ Armed Forces of the United States, if such and deaths of victims of certain terrorist attacks.’’. means any amount paid to or for the benefit decedent— of an individual— ‘‘(A) was killed in action while serving in a (d) EFFECTIVE DATE; WAIVER OF LIMITA- ‘‘(1) to reimburse or pay reasonable and combat zone, as determined under section TIONS.— necessary personal, family, living, or funeral 112(c), or (1) EFFECTIVE DATE.—The amendments expenses incurred as a result of a qualified ‘‘(B) died as a result of wounds, disease, or made by this section shall apply to estates of disaster, injury suffered while serving in a combat decedents— ‘‘(2) to reimburse or pay reasonable and zone (as determined under section 112(c)), (A) dying on or after September 11, 2001, necessary expenses incurred for the repair or and while in the line of duty, by reason of a and rehabilitation of a personal residence or re- hazard to which such decedent was subjected (B) in the case of individuals dying as a re- pair or replacement of its contents to the ex- as an incident of such service, and sult of the April 19, 1995, terrorist attack, tent that the need for such repair, rehabili- ‘‘(2) any specified terrorist victim (as de- dying on or after April 19, 1995. tation, or replacement is attributable to a fined in section 692(d)(4)). (2) WAIVER OF LIMITATIONS.—If refund or qualified disaster, ‘‘(c) RATE SCHEDULE.— credit of any overpayment of tax resulting ‘‘(3) by a person engaged in the furnishing ‘‘If the amount with re- The tentative tax is: from the amendments made by this section or sale of transportation as a common car- spect to which the is prevented at any time before the close of rier by reason of the death or personal phys- tentative tax to be the 1-year period beginning on the date of ical injuries incurred as a result of a quali- computed is: the enactment of this Act by the operation fied disaster, or Not over $150,000 ...... 1 percent of the amount of any law or rule of law (including res judi- by which such amount ‘‘(4) if such amount is paid by a Federal, exceeds $100,000. cata), such refund or credit may nevertheless State, or local government, or agency or in- Over $150,000 but not over $500 plus 2 percent of the be made or allowed if claim therefor is filed strumentality thereof, in connection with a $200,000. excess over $150,000. before the close of such period. Over $200,000 but not over $1,500 plus 3 percent of qualified disaster in order to promote the SEC. 104. PAYMENTS BY CHARITABLE ORGANIZA- $300,000. the excess over $200,000. general welfare, Over $300,000 but not over $4,500 plus 4 percent of TIONS TREATED AS EXEMPT PAY- $500,000. the excess over $300,000. MENTS. but only to the extent any expense com- Over $500,000 but not over $12,500 plus 5 percent of (a) IN GENERAL.—For purposes of the Inter- pensated by such payment is not otherwise $700,000. the excess over $500,000. nal Revenue Code of 1986— compensated for by insurance or otherwise.

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‘‘(c) QUALIFIED DISASTER DEFINED.—For one year which may be disregarded in deter- (3) Section 6161(d) is amended by adding at purposes of this section, the term ‘qualified mining the date by which any action is re- the end the following new paragraph: disaster’ means— quired or permitted to be completed under ‘‘(3) POSTPONEMENT OF CERTAIN ACTS.— ‘‘(1) a disaster which results from a terror- this title. No plan shall be treated as failing ‘‘For time for performing certain acts post- istic or military action (as defined in section to be operated in accordance with the terms poned by reason of war, see section 7508, and 692(c)(2)), of the plan solely as the result of dis- by reason of Presidentially declared disaster ‘‘(2) a Presidentially declared disaster (as regarding any period by reason of the pre- or terroristic or military action, see section defined in section 1033(h)(3)), ceding sentence. 7508A.’’. ‘‘(3) a disaster which results from an acci- ‘‘(c) SPECIAL RULES FOR OVERPAYMENTS.— The rules of section 7508(b) shall apply for (d) CLERICAL AMENDMENTS.— dent involving a common carrier, or from (1) The item relating to section 7508A in any other event, which is determined by the purposes of this section.’’. (b) CLARIFICATION OF SCOPE OF ACTS SEC- the table of sections for chapter 77 is amend- Secretary to be of a catastrophic nature, or ed to read as follows: ‘‘(4) with respect to amounts described in RETARY MAY POSTPONE.—Section subsection (b)(4), a disaster which is deter- 7508(a)(1)(K) (relating to time to be dis- ‘‘Sec. 7508A. Authority to postpone certain mined by an applicable Federal, State, or regarded) is amended by striking ‘‘in regula- deadlines by reason of Presi- local authority (as determined by the Sec- tions prescribed under this section’’. dentially declared disaster or (c) CONFORMING AMENDMENTS TO ERISA.— retary) to warrant assistance from the Fed- terroristic or military ac- (1) Part 5 of subtitle B of title I of the Em- eral, State, or local government or agency or tions.’’. ployee Retirement Income Security Act of instrumentality thereof. 1974 (29 U.S.C. 1131 et seq.) is amended by (2) The table of contents for the Employee ‘‘(d) COORDINATION WITH EMPLOYMENT adding at the end the following new section: Retirement Income Security Act of 1974 is TAXES.—For purposes of chapter 2 and sub- ‘‘SEC. 518. AUTHORITY TO POSTPONE CERTAIN amended by inserting after the item relating title C, a qualified disaster relief payment to section 517 the following new item: shall not be treated as net earnings from DEADLINES BY REASON OF PRESI- DENTIALLY DECLARED DISASTER self-employment, wages, or compensation ‘‘Sec. 518. Authority to postpone certain OR TERRORISTIC OR MILITARY AC- deadlines by reason of Presi- subject to tax. TIONS. ‘‘(e) NO RELIEF FOR CERTAIN INDIVIDUALS.— ‘‘In the case of a pension or other employee dentially declared disaster or Subsections (a) and (f) shall not apply with benefit plan, or any sponsor, administrator, terroristic or military ac- respect to any individual identified by the participant, beneficiary, or other person tions.’’. Attorney General to have been a participant with respect to such plan, affected by a (e) EFFECTIVE DATE.—The amendments or conspirator in a terroristic action (as so Presidentially declared disaster (as defined made by this section shall apply to disasters defined), or a representative of such indi- in section 1033(h)(3) of the Internal Revenue and terroristic or military actions occurring vidual. Code of 1986) or a terroristic or military ac- on or after September 11, 2001, with respect ‘‘(f) EXCLUSION OF CERTAIN ADDITIONAL tion (as defined in section 692(c)(2) of such to any action of the Secretary of the Treas- PAYMENTS.—Gross income shall not include Code), the Secretary may, notwithstanding ury, the Secretary of Labor, or the Pension any amount received as payment under sec- any other provision of law, prescribe, by no- Benefit Guaranty Corporation occurring on tion 406 of the Air Transportation Safety and tice or otherwise, a period of up to one year or after the date of the enactment of this System Stabilization Act.’’ which may be disregarded in determining the Act. (b) CONFORMING AMENDMENTS.—The table date by which any action is required or per- SEC. 113. APPLICATION OF CERTAIN PROVISIONS of sections for part III of subchapter B of mitted to be completed under this Act. No TO TERRORISTIC OR MILITARY AC- chapter 1 is amended by striking the item re- plan shall be treated as failing to be operated TIONS. lating to section 139 and inserting the fol- in accordance with the terms of the plan (a) DISABILITY INCOME.—Section 104(a)(5) lowing new items: solely as the result of disregarding any pe- (relating to compensation for injuries or ‘‘Sec. 139. Disaster relief payments. riod by reason of the preceding sentence.’’. sickness) is amended by striking ‘‘a violent attack’’ and all that follows through the pe- ‘‘Sec. 140. Cross references to other Acts.’’. (2) Section 4002 of Employee Retirement Income Security Act of 1974 (29 U.S.C. 1302) is riod and inserting ‘‘a terroristic or military (c) EFFECTIVE DATE.—The amendments amended by adding at the end the following action (as defined in section 692(c)(2)).’’. made by this section shall apply to taxable new subsection: (b) EXEMPTION FROM INCOME TAX FOR CER- years ending on or after September 11, 2001. ‘‘(i) SPECIAL RULES REGARDING DISASTERS, TAIN MILITARY OR CIVILIAN EMPLOYEES.—Sec- SEC. 112. AUTHORITY TO POSTPONE CERTAIN ETC.—In the case of a pension or other em- tion 692(c) is amended— DEADLINES AND REQUIRED AC- ployee benefit plan, or any sponsor, adminis- (1) by striking ‘‘outside the United States’’ TIONS. trator, participant, beneficiary, or other per- in paragraph (1), and (a) EXPANSION OF AUTHORITY RELATING TO son with respect to such plan, affected by a (2) by striking ‘‘SUSTAINED OVERSEAS’’ in DISASTERS AND TERRORISTIC OR MILITARY AC- Presidentially declared disaster (as defined the heading. TIONS.—Section 7508A is amended to read as in section 1033(h)(3) of the Internal Revenue (c) EFFECTIVE DATE.—The amendments follows: Code of 1986) or a terroristic or military ac- made by this section shall apply to taxable ‘‘SEC. 7508A. AUTHORITY TO POSTPONE CERTAIN tion (as defined in section 692(c)(2) of such years ending on or after September 11, 2001. DEADLINES BY REASON OF PRESI- Code), the corporation may, notwithstanding SEC. 114. CLARIFICATION OF DUE DATE FOR AIR- DENTIALLY DECLARED DISASTER LINE EXCISE TAX DEPOSITS. OR TERRORISTIC OR MILITARY AC- any other provision of law, prescribe, by no- (a) IN GENERAL.—Paragraph (3) of section TIONS. tice or otherwise, a period of up to one year 301(a) of the Air Transportation Safety and ‘‘(a) IN GENERAL.—In the case of a taxpayer which may be disregarded in determining the System Stabilization Act (Public Law 107–42) determined by the Secretary to be affected date by which any action is required or per- is amended to read as follows: by a Presidentially declared disaster (as de- mitted to be completed under this Act. No ‘‘(3) AIRLINE-RELATED DEPOSIT.—For pur- fined in section 1033(h)(3)) or a terroristic or plan shall be treated as failing to be operated poses of this subsection, the term ‘airline-re- military action (as defined in section in accordance with the terms of the plan lated deposit’ means any deposit of taxes im- 692(c)(2)), the Secretary may specify a period solely as the result of disregarding any pe- posed by subchapter C of chapter 33 of such of up to one year that may be disregarded in riod by reason of the preceding sentence.’’. Code (relating to transportation by air).’’. determining, under the internal revenue (d) ADDITIONAL CONFORMING AMEND- (b) EFFECTIVE DATE.—The amendment laws, in respect of any tax liability of such MENTS.— made by this section shall take effect as if taxpayer— (1) Section 6404 is amended— included in section 301 of the Air Transpor- ‘‘(1) whether any of the acts described in (A) by striking subsection (h), tation Safety and System Stabilization Act paragraph (1) of section 7508(a) were per- (B) by redesignating subsection (i) as sub- (Public Law 107–42). formed within the time prescribed therefor section (h), and (determined without regard to extension (C) by adding at the end the following new SEC. 115. TREATMENT OF CERTAIN STRUCTURED SETTLEMENT PAYMENTS. under any other provision of this subtitle for subsection: ‘‘(i) CROSS REFERENCE.— (a) IN GENERAL.—Subtitle E is amended by periods after the date (determined by the adding at the end the following new chapter: Secretary) of such disaster or action), ‘‘For authority to suspend running of inter- ‘‘(2) the amount of any interest, penalty, est, etc. by reason of Presidentially declared ‘‘CHAPTER 55—STRUCTURED additional amount, or addition to the tax for disaster or terroristic or military action, see SETTLEMENT FACTORING TRANSACTIONS periods after such date, and section 7508A.’’. ‘‘Sec. 5891. Structured settlement factoring ‘‘(3) the amount of any credit or refund. (2) Section 6081(c) is amended to read as transactions. ‘‘(b) SPECIAL RULES REGARDING PENSIONS, follows: ‘‘SEC. 5891. STRUCTURED SETTLEMENT FAC- ETC.—In the case of a pension or other em- ‘‘(c) CROSS REFERENCES.— TORING TRANSACTIONS. ployee benefit plan, or any sponsor, adminis- ‘‘For time for performing certain acts post- ‘‘(a) IMPOSITION OF TAX.—There is hereby trator, participant, beneficiary, or other per- poned by reason of war, see section 7508, and imposed on any person who acquires directly son with respect to such plan, affected by a by reason of Presidentially declared disaster or indirectly structured settlement payment disaster or action described in subsection (a), or terroristic or military action, see section rights in a structured settlement factoring the Secretary may specify a period of up to 7508A.’’. transaction a tax equal to 40 percent of the

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00212 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S13985 factoring discount as determined under sub- payment rights’ means rights to receive pay- such Code (as so added)) entered into before, section (c)(4) with respect to such factoring ments under a structured settlement. on, or after such 30th day. transaction. ‘‘(3) STRUCTURED SETTLEMENT FACTORING (3) TRANSITION RULE.—In the case of a ‘‘(b) EXCEPTION FOR CERTAIN APPROVED TRANSACTION.— structured settlement factoring transaction TRANSACTIONS.— ‘‘(A) IN GENERAL.—The term ‘structured entered into during the period beginning on ‘‘(1) IN GENERAL.—The tax under subsection settlement factoring transaction’ means a the 30th day following the date of the enact- (a) shall not apply in the case of a structured transfer of structured settlement payment ment of this Act and ending on July 1, 2002, settlement factoring transaction in which rights (including portions of structured set- no tax shall be imposed under section 5891(a) the transfer of structured settlement pay- tlement payments) made for consideration of such Code if— ment rights is approved in advance in a by means of sale, assignment, pledge, or (A) the structured settlement payee is qualified order. other form of encumbrance or alienation for domiciled in a State (or possession of the ‘‘(2) QUALIFIED ORDER.—For purposes of consideration. United States) which has not enacted a stat- this section, the term ‘qualified order’ means ‘‘(B) EXCEPTION.—Such term shall not in- ute providing that the structured settlement a final order, judgment, or decree which— clude— factoring transaction is ineffective unless ‘‘(A) finds that the transfer described in ‘‘(i) the creation or perfection of a security the transaction has been approved by an paragraph (1)— interest in structured settlement payment order, judgment, or decree of a court (or ‘‘(i) does not contravene any Federal or rights under a blanket security agreement where applicable, a responsible administra- State statute or the order of any court or re- entered into with an insured depository in- tive authority) which finds that such trans- sponsible administrative authority, and stitution in the absence of any action to re- action— ‘‘(ii) is in the best interest of the payee, direct the structured settlement payments (i) does not contravene any Federal or taking into account the welfare and support to such institution (or agent or successor State statute or the order of any court (or of the payee’s dependents, and thereof) or otherwise to enforce such blanket responsible administrative authority), and ‘‘(B) is issued— security interest as against the structured (ii) is in the best interest of the structured ‘‘(i) under the authority of an applicable settlement payment rights, or settlement payee or is appropriate in light of State statute by an applicable State court, ‘‘(ii) a subsequent transfer of structured a hardship faced by the payee, and or settlement payment rights acquired in a (B) the person acquiring the structured ‘‘(ii) by the responsible administrative au- structured settlement factoring transaction. settlement payment rights discloses to the thority (if any) which has exclusive jurisdic- ‘‘(4) FACTORING DISCOUNT.—The term ‘fac- structured settlement payee in advance of tion over the underlying action or pro- toring discount’ means an amount equal to the structured settlement factoring trans- ceeding which was resolved by means of the the excess of— action the amounts and due dates of the pay- structured settlement. ‘‘(A) the aggregate undiscounted amount of ments to be transferred, the aggregate ‘‘(3) APPLICABLE STATE STATUTE.—For pur- structured settlement payments being ac- amount to be transferred, the consideration poses of this section, the term ‘applicable quired in the structured settlement factoring to be received by the structured settlement State statute’ means a statute providing for transaction, over payee for the transferred payments, the dis- the entry of an order, judgment, or decree described in paragraph (2)(A) which is en- ‘‘(B) the total amount actually paid by the counted present value of the transferred pay- acted by— acquirer to the person from whom such ments (including the present value as deter- ‘‘(A) the State in which the payee of the structured settlement payments are ac- mined in the manner described in section structured settlement is domiciled, or quired. 7520 of such Code), and the expenses required ‘‘(B) if there is no statute described in sub- ‘‘(5) RESPONSIBLE ADMINISTRATIVE AUTHOR- under the terms of the structured settlement paragraph (A), the State in which either the ITY.—The term ‘responsible administrative factoring transaction to be paid by the struc- party to the structured settlement (includ- authority’ means the administrative author- tured settlement payee or deducted from the ing an assignee under a qualified assignment ity which had jurisdiction over the under- proceeds of such transaction. under section 130) or the person issuing the lying action or proceeding which was re- SEC. 116. PERSONAL EXEMPTION DEDUCTION funding asset for the structured settlement solved by means of the structured settle- FOR CERTAIN DISABILITY TRUSTS. is domiciled or has its principal place of ment. (a) IN GENERAL.—Subsection (b) of section business. ‘‘(6) STATE.—The term ‘State’ includes the 642 (relating to deduction for personal ex- Commonwealth of Puerto Rico and any pos- ‘‘(4) APPLICABLE STATE COURT.—For pur- emption) is amended to read as follows: poses of this section— session of the United States. ‘‘(b) DEDUCTION FOR PERSONAL EXEMP- TION.— ‘‘(A) IN GENERAL.—The term ‘applicable ‘‘(d) COORDINATION WITH OTHER PROVI- State court’ means, with respect to any ap- SIONS.— ‘‘(1) ESTATES.—An estate shall be allowed a plicable State statute, a court of the State ‘‘(1) IN GENERAL.—If the applicable require- deduction of $600. which enacted such statute. ments of sections 72, 104(a)(1), 104(a)(2), 130, ‘‘(2) TRUSTS.— ‘‘(A) IN GENERAL.—Except as otherwise pro- ‘‘(B) SPECIAL RULE.—In the case of an ap- and 461(h) were satisfied at the time the plicable State statute described in paragraph structured settlement involving structured vided in this paragraph, a trust shall be al- (3)(B), such term also includes a court of the settlement payment rights was entered into, lowed a deduction of $100. State in which the payee of the structured the subsequent occurrence of a structured ‘‘(B) TRUSTS DISTRIBUTING INCOME CUR- settlement is domiciled. settlement factoring transaction shall not RENTLY.—A trust which, under its governing instrument, is required to distribute all of ‘‘(5) QUALIFIED ORDER DISPOSITIVE.—A affect the application of the provisions of qualified order shall be treated as dispositive such sections to the parties to the structured its income currently shall be allowed a de- for purposes of the exception under this sub- settlement (including an assignee under a duction of $300. section. qualified assignment under section 130) in ‘‘(C) DISABILITY TRUSTS.— ‘‘(c) DEFINITIONS.—For purposes of this sec- any taxable year. ‘‘(i) IN GENERAL.—A qualified disability tion— ‘‘(2) NO WITHHOLDING OF TAX.—The provi- trust shall be allowed a deduction equal to ‘‘(1) STRUCTURED SETTLEMENT.—The term sions of section 3405 regarding withholding of the exemption amount under section 151(d), ‘structured settlement’ means an arrange- tax shall not apply to the person making the determined— ment— payments in the event of a structured settle- ‘‘(I) by treating such trust as an individual ‘‘(A) which is established by— ment factoring transaction.’’. described in section 151(d)(3)(C)(iii), and ‘‘(i) suit or agreement for the periodic pay- (b) CLERICAL AMENDMENT.—The table of ‘‘(II) by applying section 67(e) (without the ment of damages excludable from the gross chapters for subtitle E is amended by adding reference to section 642(b)) for purposes of income of the recipient under section at the end the following new item: determining the adjusted gross income of the 104(a)(2), or trust. ‘‘Chapter 55. Structured settlement factoring ‘‘(ii) agreement for the periodic payment of ‘‘(ii) QUALIFIED DISABILITY TRUST.—For transactions.’’. compensation under any workers’ compensa- purposes of clause (i), the term ‘qualified dis- tion law excludable from the gross income of (c) EFFECTIVE DATES.— ability trust’ means any trust if— the recipient under section 104(a)(1), and (1) IN GENERAL.—The amendments made by ‘‘(I) such trust is a disability trust de- ‘‘(B) under which the periodic payments this section (other than the provisions of scribed in subsection (c)(2)(B)(iv) of section are— section 5891(d) of the Internal Revenue Code 1917 of the Social Security Act (42 U.S.C. ‘‘(i) of the character described in subpara- of 1986, as added by this section) shall apply 1396p), and graphs (A) and (B) of section 130(c)(2), and to structured settlement factoring trans- ‘‘(II) all of the beneficiaries of the trust as ‘‘(ii) payable by a person who is a party to actions (as defined in section 5891(c) of such of the close of the taxable year are deter- the suit or agreement or to the workers’ Code (as so added)) entered into on or after mined by the Commissioner of Social Secu- compensation claim or by a person who has the 30th day following the date of the enact- rity to have been disabled (within the mean- assumed the liability for such periodic pay- ment of this Act. ing of section 1614(a)(3) of the Social Secu- ments under a qualified assignment in ac- (2) CLARIFICATION OF EXISTING LAW.—Sec- rity Act, 42 U.S.C. 1382c(a)(3)) for some por- cordance with section 130. tion 5891(d) of such Code (as so added) shall tion of such year. ‘‘(2) STRUCTURED SETTLEMENT PAYMENT apply to structured settlement factoring A trust shall not fail to meet the require- RIGHTS.—The term ‘structured settlement transactions (as defined in section 5891(c) of ments of subclause (II) merely because the

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00213 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S13986 CONGRESSIONAL RECORD — SENATE December 20, 2001 corpus of the trust may revert to a person tion is disclosed only to officers and employ- or grand jury proceedings, pertaining to such who is not so disabled after the trust ceases ees who are personally and directly engaged terrorist incident, threat, or activity. to have any beneficiary who is so disabled.’’ in such response or investigation. ‘‘(ii) APPLICATION FOR ORDER.—The Attor- ‘‘(3) DEDUCTIONS IN LIEU OF PERSONAL EX- ‘‘(iii) REQUIREMENTS.—A request meets the ney General, the Deputy Attorney General, EMPTION.—The deductions allowed by this requirements of this clause if— the Associate Attorney General, any Assist- subsection shall be in lieu of the deductions ‘‘(I) the request is made by the head of any ant Attorney General, or any United States allowed under section 151 (relating to deduc- Federal law enforcement agency (or his dele- attorney may authorize an application to a tion for personal exemption).’’. gate) involved in the response to or inves- Federal district court judge or magistrate (b) EFFECTIVE DATE.—The amendment tigation of any terrorist incident, threat, or for the order referred to in clause (i). Upon made by this section shall apply to taxable activity, and such application, such judge or magistrate years ending on or after September 11, 2001. ‘‘(II) the request sets forth the specific rea- may grant such order if he determines on the TITLE II—DISCLOSURE OF TAX INFORMA- son or reasons why such disclosure may be basis of the facts submitted by the applicant TION IN TERRORISM AND NATIONAL SE- relevant to a terrorist incident, threat, or that— CURITY INVESTIGATIONS activity. ‘‘(I) there is reasonable cause to believe, SEC. 201. DISCLOSURE OF TAX INFORMATION IN ‘‘(iv) LIMITATION ON USE OF INFORMATION.— based upon information believed to be reli- TERRORISM AND NATIONAL SECU- Information disclosed under this subpara- able, that the return or return information RITY INVESTIGATIONS. graph shall be solely for the use of the offi- may be relevant to a matter relating to such (a) DISCLOSURE WITHOUT A REQUEST OF IN- cers and employees to whom such informa- terrorist incident, threat, or activity, and FORMATION RELATING TO TERRORIST ACTIVI- tion is disclosed in such response or inves- ‘‘(II) the return or return information is TIES, ETC.—Paragraph (3) of section 6103(i) tigation. sought exclusively for use in a Federal inves- (relating to disclosure of return information ‘‘(B) DISCLOSURE TO INTELLIGENCE AGEN- tigation, analysis, or proceeding concerning to apprise appropriate officials of criminal CIES.— any terrorist incident, threat, or activity. activities or emergency circumstances) is ‘‘(i) IN GENERAL.—Except as provided in ‘‘(D) SPECIAL RULE FOR EX PARTE DISCLO- amended by adding at the end the following paragraph (6), upon receipt by the Secretary SURE BY THE IRS.— new subparagraph: of a written request which meets the require- ‘‘(i) IN GENERAL.—Except as provided in ‘‘(C) TERRORIST ACTIVITIES, ETC.— ments of clause (ii), the Secretary may dis- paragraph (6), the Secretary may authorize ‘‘(i) IN GENERAL.—Except as provided in close return information (other than tax- an application to a Federal district court paragraph (6), the Secretary may disclose in payer return information) to those officers judge or magistrate for the order referred to writing return information (other than tax- and employees of the Department of Justice, in subparagraph (C)(i). Upon such applica- payer return information) that may be re- the Department of the Treasury, and other tion, such judge or magistrate may grant lated to a terrorist incident, threat, or activ- Federal intelligence agencies who are per- such order if he determines on the basis of ity to the extent necessary to apprise the sonally and directly engaged in the collec- the facts submitted by the applicant that the head of the appropriate Federal law enforce- tion or analysis of intelligence and counter- requirements of subparagraph (C)(ii)(I) are ment agency responsible for investigating or intelligence information or investigation met. responding to such terrorist incident, threat, concerning any terrorist incident, threat, or ‘‘(ii) LIMITATION ON USE OF INFORMATION.— or activity. The head of the agency may dis- activity. For purposes of the preceding sen- Information disclosed under clause (i)— close such return information to officers and tence, the information disclosed under the ‘‘(I) may be disclosed only to the extent employees of such agency to the extent nec- preceding sentence shall be solely for the use necessary to apprise the head of the appro- essary to investigate or respond to such ter- of such officers and employees in such inves- priate Federal law enforcement agency re- rorist incident, threat, or activity. tigation, collection, or analysis. sponsible for investigating or responding to a ‘‘(ii) DISCLOSURE TO THE DEPARTMENT OF ‘‘(ii) REQUIREMENTS.—A request meets the terrorist incident, threat, or activity, and JUSTICE.—Returns and taxpayer return infor- requirements of this subparagraph if the re- ‘‘(II) shall be solely for use in a Federal in- mation may also be disclosed to the Attor- quest— vestigation, analysis, or proceeding con- ney General under clause (i) to the extent ‘‘(I) is made by an individual described in cerning any terrorist incident, threat, or ac- necessary for, and solely for use in pre- clause (iii), and tivity. paring, an application under paragraph ‘‘(II) sets forth the specific reason or rea- The head of such Federal agency may dis- (7)(D). sons why such disclosure may be relevant to close such information to officers and em- ‘‘(iii) TAXPAYER IDENTITY.—For purposes of a terrorist incident, threat, or activity. ployees of such agency to the extent nec- this subparagraph, a taxpayer’s identity ‘‘(iii) REQUESTING INDIVIDUALS.—An indi- essary to investigate or respond to such ter- shall not be treated as taxpayer return infor- vidual described in this subparagraph is an rorist incident, threat, or activity. mation. individual— ‘‘(E) TERMINATION.—No disclosure may be ‘‘(iv) TERMINATION.—No disclosure may be ‘‘(I) who is an officer or employee of the made under this subparagraph after Decem- Department of Justice or the Department of made under this paragraph after December ber 31, 2003.’’. the Treasury who is appointed by the Presi- 31, 2003.’’. (b) DISCLOSURE UPON REQUEST OF INFORMA- dent with the advice and consent of the Sen- (c) CONFORMING AMENDMENTS.— TION RELATING TO TERRORIST ACTIVITIES, ate or who is the Director of the United (1) Section 6103(a)(2) is amended by insert- ETC.—Subsection (i) of section 6103 (relating States Secret Service, and ing ‘‘any local law enforcement agency re- to disclosure to Federal officers or employ- ‘‘(II) who is responsible for the collection ceiving information under subsection ees for administration of Federal laws not and analysis of intelligence and counter- (i)(7)(A),’’ after ‘‘State,’’. relating to tax administration) is amended intelligence information concerning any ter- (2) Section 6103(b) is amended by adding at by redesignating paragraph (7) as paragraph rorist incident, threat, or activity. the end the following new paragraph: (8) and by inserting after paragraph (6) the ‘‘(iv) TAXPAYER IDENTITY.—For purposes of ‘‘(11) TERRORIST INCIDENT, THREAT, OR AC- following new paragraph: this subparagraph, a taxpayer’s identity TIVITY.—The term ‘terrorist incident, threat, ‘‘(7) DISCLOSURE UPON REQUEST OF INFORMA- shall not be treated as taxpayer return infor- or activity’ means an incident, threat, or ac- TION RELATING TO TERRORIST ACTIVITIES, mation. tivity involving an act of domestic terrorism ETC.— ‘‘(C) DISCLOSURE UNDER EX PARTE ORDERS.— (as defined in section 2331(5) of title 18, ‘‘(A) DISCLOSURE TO LAW ENFORCEMENT ‘‘(i) IN GENERAL.—Except as provided in United States Code) or international ter- AGENCIES.— paragraph (6), any return or return informa- rorism (as defined in section 2331(1) of such ‘‘(i) IN GENERAL.—Except as provided in tion with respect to any specified taxable pe- title).’’. paragraph (6), upon receipt by the Secretary riod or periods shall, pursuant to and upon (3) The heading of section 6103(i)(3) is of a written request which meets the require- the grant of an ex parte order by a Federal amended by inserting ‘‘OR TERRORIST’’ after ments of clause (iii), the Secretary may dis- district court judge or magistrate under ‘‘CRIMINAL’’. close return information (other than tax- clause (ii), be open (but only to the extent (4) Paragraph (4) of section 6103(i) is payer return information) to officers and necessary as provided in such order) to in- amended— employees of any Federal law enforcement spection by, or disclosure to, officers and em- (A) in subparagraph (A) by inserting ‘‘or agency who are personally and directly en- ployees of any Federal law enforcement (7)(C)’’ after ‘‘paragraph (1)’’, and gaged in the response to or investigation of agency or Federal intelligence agency who (B) in subparagraph (B) by striking ‘‘or any terrorist incident, threat, or activity. are personally and directly engaged in any (3)(A)’’ and inserting ‘‘(3)(A) or (C), or (7)’’. ‘‘(ii) DISCLOSURE TO STATE AND LOCAL LAW investigation, response to, or analysis of in- (5) Paragraph (6) of section 6103(i) is ENFORCEMENT AGENCIES.—The head of any telligence and counterintelligence informa- amended— Federal law enforcement agency may dis- tion concerning any terrorist incident, (A) by striking ‘‘(3)(A)’’ and inserting close return information obtained under threat, or activity. Return or return infor- ‘‘(3)(A) or (C)’’, and clause (i) to officers and employees of any mation opened to inspection or disclosure (B) by striking ‘‘or (7)’’ and inserting ‘‘(7), State or local law enforcement agency but pursuant to the preceding sentence shall be or (8)’’. only if such agency is part of a team with solely for the use of such officers and em- (6) Section 6103(p)(3) is amended— the Federal law enforcement agency in such ployees in the investigation, response, or (A) in subparagraph (A) by striking response or investigation and such informa- analysis, and in any judicial, administrative, ‘‘(7)(A)(ii)’’ and inserting ‘‘(8)(A)(ii)’’, and

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00214 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S13987 (B) in subparagraph (C) by striking Sec. 1. Short title; table of contents. (4) The United States is increasingly de- ‘‘(i)(3)(B)(i)’’ and inserting ‘‘(i)(3)(B)(i) or TITLE I—PORT AND MARITIME SECU- pendent on imported energy for a substantial (7)(A)(ii)’’. RITY share of supply, and a disruption of supply (7) Section 6103(p)(4) is amended— Sec. 101. Findings. would seriously harm consumers and our (A) in the matter preceding subparagraph Sec. 102. National Maritime Security Advi- economy. (A)— sory Committee. (5) The top 50 ports in the United States (i) by striking ‘‘or (5),’’ the first place it Sec. 103. Initial security evaluations and account for about 90 percent of all the cargo appears and inserting ‘‘(5), or (7),’’, and port vulnerability assessments. tonnage. Twenty-five United States ports ac- (ii) by striking ‘‘(i)(3)(B)(i),’’ and inserting Sec. 104. Establishment of local port secu- count for 98 percent of all container ship- ‘‘(i)(3)(B)(i) or (7)(A)(ii),’’, and rity committees. ments. Cruise ships visiting foreign destina- (B) in subparagraph (F)(ii) by striking ‘‘or Sec. 105. Maritime facility security plans. tions embark from 16 ports. Ferries in the (5),’’ the first place it appears and inserting Sec. 106. Employment investigations and re- United States transport 113,000,000 pas- ‘‘(5) or (7),’’. strictions for security-sensitive sengers and 32,000,000 vehicles per year. (8) Section 6103(p)(6)(B)(i) is amended by positions. (6) In the larger ports, the activities can striking ‘‘(i)(7)(A)(ii)’’ and inserting Sec. 107. Maritime domain awareness. stretch along a coast for many miles, includ- ‘‘(i)(8)(A)(ii)’’. Sec. 108. International port security. ing public roads within their geographic (9) Section 6105(b) is amended— Sec. 109. Counter-terrorism and incident boundaries. The facilities used to support ar- (A) by striking ‘‘or’’ at the end of para- contingency plans. riving and departing cargo are sometimes graph (2), Sec. 110. Maritime security professional miles from the coast. (B) by striking ‘‘paragraphs (1) or (2)’’ in training. (7) Ports often are a major locus of Federal paragraph (3) and inserting ‘‘paragraph (1), Sec. 111. Port security infrastructure im- crime, including drug trafficking, cargo (2), or (3)’’, provement. theft, and smuggling of contraband and (C) by redesignating paragraph (3) as para- Sec. 112. Screening and detection equip- aliens. The criminal conspiracies often asso- graph (4), and ment. ciated with these crimes can pose threats to (D) by inserting after paragraph (2) the fol- Sec. 113. Revision of port security planning the people and critical infrastructures of lowing new paragraph: guide. port cities. Ports that accept international ‘‘(3) to the disclosure of tax convention in- Sec. 114. Shared dockside inspection facili- cargo have a higher risk of international formation on the same terms as return infor- ties. crimes like drug and alien smuggling and mation may be disclosed under paragraph Sec. 115. Mandatory advanced electronic in- trade fraud. (3)(C) or (7) of section 6103(i), except that in formation for cargo and pas- (8) Ports are often very open and exposed the case of tax convention information pro- sengers and other improved and, by the very nature of their role in pro- vided by a foreign government, no disclosure customs reporting procedures. moting the free flow of commerce, are sus- may be made under this paragraph without Sec. 116. Prearrival messages from vessels ceptible to large scale terrorism that could the written consent of the foreign govern- destined to United States ports. pose a threat to coastal, Great Lake, or ment, or’’. Sec. 117. Maritime safety and security riverain populations. Port terrorism could (10) Section 7213(a)(2) is amended by strik- teams. pose a significant threat to the ability of the ing ‘‘(i)(3)(B)(i),’’ and inserting ‘‘(i)(3)(B)(i) or Sec. 118. Research and development for United States to pursue its national security (7)(A)(ii),’’. crime and terrorism prevention objectives. (d) EFFECTIVE DATE.—The amendments and detection technology. (9) United States ports are international made by this section shall apply to disclo- Sec. 119. Extension of seaward jurisdiction. boundaries, however, unlike United States sures made on or after the date of the enact- Sec. 120. Suspension of limitation on airports and land borders, United States ment of this Act. strength of Coast Guard. ports receive no Federal funds for security infrastructure. TITLE III—NO IMPACT ON SOCIAL Sec. 121. Additional reports. (10) Current inspection levels of container- SECURITY TRUST FUNDS Sec. 122. 4-year reauthorization of tonnage duties. ized cargo are insufficient to counter poten- SEC. 301. NO IMPACT ON SOCIAL SECURITY Sec. 123 Definitions. tial security risks. Technology is currently TRUST FUNDS. not adequately deployed to allow for the (a) IN GENERAL.—Nothing in this Act (or an TITLE II—ADDITIONAL MARITIME SAFE- TY AND SECURITY RELATED non-intrusive inspection of containerized amendment made by this Act) shall be con- cargo. Additional promising technology is in strued to alter or amend title II of the Social MEASURES the process of being developed that could in- Security Act (or any regulation promulgated Sec. 201. Extension of deepwater port act to spect cargo in a non-intrusive and efficient under that Act). natural gas. fashion. (b) TRANSFERS.— Sec. 202. Assignment of Coast Guard per- (11) The burgeoning cruise ship industry (1) ESTIMATE OF SECRETARY.—The Sec- sonnel as sea marshals and en- poses a special risk from a security perspec- retary of the Treasury shall annually esti- hanced use of other security tive. mate the impact that the enactment of this personnel. (12) Effective physical security and access Act has on the income and balances of the Sec. 203. National maritime transportation control in ports is fundamental to deterring trust funds established under section 201 of security plan. and preventing potential threats to port op- the Social Security Act (42 U.S.C. 401). Sec. 204. Area maritime security commit- erations, and cargo shipments. (2) TRANSFER OF FUNDS.—If, under para- tees and area maritime security (13) Securing entry points, open storage graph (1), the Secretary of the Treasury esti- plans. areas, and warehouses throughout the port, mates that the enactment of this Act has a Sec. 205. Vessel security plans. controlling the movements of trucks trans- negative impact on the income and balances Sec. 206. Protection of security-related in- porting cargo through the port, and exam- of the trust funds established under section formation. ining or inspecting containers, warehouses, 201 of the Social Security Act (42 U.S.C. 401), Sec. 207. Enhanced cargo identification and and ships at berth or in the harbor are all the Secretary shall transfer, not less fre- tracking. important requirements that should be im- quently than quarterly, from the general Sec. 208. Enhanced crewmember identifica- plemented. revenues of the Federal Government an tion. (14) Identification procedures for arriving amount sufficient so as to ensure that the TITLE I—PORT AND MARITIME SECURITY workers are important tools to deter and income and balances of such trust funds are SEC. 101. FINDINGS. prevent port cargo crimes, smuggling, and not reduced as a result of the enactment of The Congress makes the following findings: terrorist actions. this Act. (1) There are 361 public ports in the United (15) On April 27, 1999, the President estab- SA 2690. Mr. HOLLINGS (for himself, States which have a broad range of charac- lished the Interagency Commission on Crime teristics, and all of which are an integral and Security in United States Ports to un- Mr. MCCAIN, and Mr. GRAHAM) proposed part of our Nation’s commerce. dertake a comprehensive study of the nature an amendment to the bill S. 1214, to (2) United States ports conduct over 95 per- and extent of the problem of crime in our amend the Merchant Marine Act, 1936, cent of United States overseas trade. Over ports, as well as the ways in which govern- to establish a program to ensure great- the next 20 years, the total volume of im- ments at all levels are responding. er security for United States seaports, ported and exported goods at ports is ex- (16) The Commission has issued findings and for other purposes; as follows: pected to more than double. that indicate the following: Strike out all after the enacting clause and (3) The variety of trade and commerce that (A) Frequent crimes in ports include drug insert the following: are carried out at ports has greatly ex- smuggling, illegal car exports, fraud (includ- SECTION 1. SHORT TITLE; TABLE OF CONTENTS. panded. Bulk cargo, containerized cargo, ing Intellectual Property Rights and other (a) SHORT TITLE.—This Act may be cited as passenger transport and tourism, intermodal trade violations), and cargo theft. the ‘‘Port and Maritime Security Act of transportation systems, and complex domes- (B) Data about crime in ports has been 2001’’. tic and international trade relationships very difficult to collect. (b) TABLE OF CONTENTS.—The table of con- have significantly changed the nature, con- (C) Internal conspiracies are an issue at tents for this Act is as follows: duct, and complexity of port commerce. many ports, and contribute to Federal crime.

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00215 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S13988 CONGRESSIONAL RECORD — SENATE December 20, 2001 (D) Intelligence and information sharing (G) to harmonize data collection on port- ments and area and local port security com- among law enforcement agencies needs to be related and other cargo theft, in order to ad- mittees and harbor safety committees; improved and coordinated at many ports. dress areas of potential threat to safety and ‘‘(iii) conditions for maritime security and (E) Many ports do not have any idea about security; safety loan guarantees and grants; the threats they face from crime, terrorism, (H) to create shared inspection facilities to ‘‘(iv) development of a National Maritime and other security-related activities because help facilitate the timely and efficient in- Transportation Security Plan; of a lack of credible threat information. spection of people and cargo in United States ‘‘(v) development and implementation of (F) A lack of minimum physical, proce- ports; area and local maritime security plans; dural, and personnel security standards at (I) to improve Customs reporting proce- ‘‘(vi) protection of port energy transpor- ports and at terminals, warehouses, trucking dures to enhance the potential detection of tation facilities; and firms, and related facilities leaves many crime in advance of arrival or departure of ‘‘(vii) helping to ensure that the public and ports and port users vulnerable to theft, pil- cargoes; and area and local port security committees are ferage, and unauthorized access by crimi- (J) to promote private sector procedures kept informed about maritime security en- nals. that provide for in-transit visibility and sup- hancement developments. (G) Access to ports and operations within port law enforcement efforts directed at ‘‘(5) TERMINATION.—The Advisory Com- ports is often uncontrolled. managing the security risks of cargo ship- mittee shall terminate on September 30, (H) Coordination and cooperation between ments. 2005.’’. (b) FUNDING FOR FYS 2003-2005.—Of the law enforcement agencies in the field is SEC. 102. NATIONAL MARITIME SECURITY ADVI- SORY COMMITTEE. amounts made available under section 122(b) often fragmented. (a) IN GENERAL.—Section 7 of the Ports and there may be made available to the Sec- (I) Meetings between law enforcement per- Waterways Safety Act (33 U.S.C. 1226) is retary of Transportation for activities of the sonnel, carriers, marine terminal operators, amended by adding at the end the following: National Maritime Security Advisory Com- and port authorities regarding security are ‘‘(d) NATIONAL MARITIME SECURITY ADVI- mittee established under section 7(d) of the not being held routinely in the ports. These SORY COMMITTEE.— Ports and Waterways Safety Act (33 U.S.C. meetings could increase coordination and co- ‘‘(1) IN GENERAL.—The Secretary shall es- 1226(d)) $1,000,000 for each of fiscal years 2003 operation at the local level. tablish a National Maritime Security Advi- through 2005, such sums to remain available (J) Security-related equipment such as sory Committee, comprised of not more than until expended. small boats, cameras, and vessel tracking de- 21 members appointed by the Secretary. The (c) AUTHORIZATION OF APPROPRIATIONS FOR vices is lacking at many ports. Secretary may require that a prospective FY 2002.—There are authorized to be appro- (K) Detection equipment such as large- member undergo a background check or ob- priated to the Secretary of Transportation scale x-ray machines is lacking at many tain an appropriate security clearance before $1,000,000 for fiscal year 2002 for activities of high-risk ports. appointment. the Advisory Committee, such sums to re- (L) A lack of timely, accurate, and com- ‘‘(2) ORGANIZATION.—The Secretary— main available until expended. plete manifest (including in-bond) and trade ‘‘(A) shall designate a chairperson of the SEC. 103. INITIAL SECURITY EVALUATIONS AND (entry, importer, etc.) data negatively im- Advisory Committee; PORT VULNERABILITY ASSESS- pacts law enforcement’s ability to function ‘‘(B) shall approve a charter, including MENTS. effectively. such procedures and rules as the Secretary (a) IN GENERAL.—Section 7 of the Ports and (M) Criminal organizations are exploiting deems necessary for the operation of the Ad- Waterways Safety Act (33 U.S.C. 1226), as weak security in ports and related inter- visory Committee; amended by section 102, is further amended modal connections to commit a wide range ‘‘(C) shall establish a law enforcement sub- by adding at the end the following: ‘‘(e) INITIAL SECURITY EVALUATIONS AND of cargo crimes. Levels of containerized committee and, with the consent of the Sec- PORT VULNERABILITY ASSESSMENTS.— cargo volumes are forecasted to increase sig- retary of the Treasury and the Attorney ‘‘(1) DEVELOPMENT OF STANDARDS.—The nificantly, which will create more opportuni- General, respectively, include as members of Secretary, in consultation with appropriate ties for crime while lowering the statistical the subcommittee representatives from the public and private sector officials and orga- risk of detection and interdiction. Customs Service and the Immigration and nizations, shall develop standards and proce- (17) United States ports are international Naturalization Service; dures for conducting initial security evalua- boundaries that— ‘‘(D) may establish other subcommittees to tions and port vulnerability assessments. (A) are particularly vulnerable to threats facilitate consideration of specific issues, in- ‘‘(2) INITIAL SECURITY EVALUATIONS.—The of drug smuggling, illegal alien smuggling, cluding maritime and port security, border Secretary shall conduct an initial security cargo theft, illegal entry of cargo and con- protection, and maritime domain awareness evaluation of all port authorities, waterfront traband; issues, the potential effects on national en- facilities, and public or commercial struc- (B) may present weaknesses in the ability ergy security, the United States economy, tures located within or adjacent to the ma- of the United States to realize its national and the environment of disruptions of crude rine environment. The Secretary shall con- security objectives; and oil, refined petroleum products, liquified sult the local port security committee while (C) may serve as a vector or target for ter- natural gas, and other energy sources; and developing the initial security evaluation, rorist attacks aimed at the population of the ‘‘(E) may invite the participation of other and may require each port authority, water- United States. Federal agencies and of State and local gov- front facility operator, or operator of a pub- (18) It is in the best interests of the United ernment agencies of State, including law en- lic or commercial structure located within States— forcement agencies, with an interest or ex- or adjacent to the marine environment to (A) to be mindful that United States ports pertise in anti-terrorism or maritime and submit security information for review by are international ports of entry and that the port security and safety related issues. the local port security committee. primary obligation for the security of inter- ‘‘(3) MATERIAL AND MISSION SUPPORT.—In ‘‘(3) PORT VULNERABILITY ASSESSMENTS.— national ports of entry lies with the Federal carrying out this subsection, the Secretary The Secretary shall review initial security government; may accept contributions of funds, material, evaluations and conduct a port vulnerability (B) to be mindful of the need for the free services, and the use of personnel and facili- assessment for each port for which the Sec- flow of interstate and foreign commerce and ties from public or private entities, by con- retary determines such an assessment is ap- the need to ensure the efficient movement of tract or other arrangement, if the confiden- propriate. If a port vulnerability assessment cargo in interstate and foreign commerce tiality of security-sensitive information is has been conducted within 5 years by or on and the need for increased efficiencies to ad- maintained and access to such information is behalf of a port authority or marine ter- dress trade gains; limited appropriately. The Secretary shall minal operator, and the Secretary deter- (C) to increase United States port security deposit any funds accepted under this para- mines that it was conducted in a manner by establishing a better method of commu- graph as miscellaneous receipts in the gen- that is generally consistent with the stand- nication amongst law enforcement officials eral fund of the Treasury. ards and procedures specified under this sub- responsible for port boundary, security, and ‘‘(4) FUNCTIONS.—The Advisory Committee section, the Secretary may accept that as- trade issues; shall— sessment rather than conducting another (D) to formulate requirements for physical ‘‘(A) advise, consult with, report to, and port vulnerability assessment for that port. port security, recognizing the different char- make recommendations to the Secretary on ‘‘(4) REVIEW AND COMMENT OPPORTUNITY.— acter and nature of United States ports, and ways to enhance the security and safety of The Secretary shall make each initial secu- to require the establishment of security pro- United States ports; and rity evaluation and port vulnerability as- grams at ports; ‘‘(B) provide advice and recommendations sessment for a port available for review and (E) to provide financial incentives to help to the Secretary on matters related to mari- comment by the local port security com- the States and private sector to increase time and port security and safety, includ- mittee, officials of the port authority, ma- physical security of United States ports; ing— rine terminal operator representatives, and (F) to invest in long-term technology to fa- ‘‘(i) longterm solutions for maritime and representatives of other entities connected cilitate the private sector development of port security issues; to or affiliated with maritime commerce or technology that will assist in the non-intru- ‘‘(ii) coordination of security and safety port security as the Secretary determines to sive timely detection of crime or potential operations and information between and be appropriate, based on the recommenda- crime; among Federal, State, and local govern- tions of the local port security committee.

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‘‘(5) UNAUTHORIZED DISCLOSURE.—The Sec- ‘‘(G) other persons or organizations whose approaches, including establishing, as nec- retary shall ensure that all initial security inclusion is deemed beneficial by the Captain essary, controlled access areas and secure pe- evaluations, port vulnerability assessments, of the Port or the Secretary. rimeters within waterfront facilities and and any associated materials are properly ‘‘(4) CHAIR.—Each local port security com- other public or commercial structures lo- safeguarded from unauthorized disclosure. mittee shall be chaired by the Captain-of- cated within or adjacent to the marine envi- ‘‘(6) MATERIAL AND MISSION SUPPORT.—In the-Port. ronment; carrying out responsibilities under this Act, ‘‘(5) JURISDICTION.—Each port may have a ‘‘(ii) provisions for establishing and main- the Secretary may accept contributions of separate port security committee or, at the taining procedural security for processing funds, material, services, and the use of per- discretion of the Captain-of-the-Port, a Cap- passengers, cargo, and crewmembers, and se- sonnel and facilities from public and private tain-of-the-Port zone may have a single port curity for employees and service providers; entities by contract or other arrangement if security committee covering all ports within ‘‘(iii) a credentialing requirement to limit the confidentiality of security-sensitive in- that zone. access to waterfront facilities and other pub- formation is maintained and access to such ‘‘(6) QUARTERLY MEETINGS.—The port secu- lic or commercial structures located within information is limited appropriately. The rity committee shall meet at least 4 times or adjacent to the marine environment, de- Secretary shall deposit any funds accepted each year at the call of the Chairperson. signed to ensure that only authorized indi- under this section as miscellaneous receipts ‘‘(7) FACA NOT APPLICABLE.—The Federal viduals and service providers gain admit- in the general fund of the Treasury.’’. Advisory Committee Act (5 U.S.C. App.) does tance; (b) FUNDING.—Of the amounts made avail- not apply to a port security committee es- ‘‘(iv) a credentialing requirement to limit able under section 122(b) there may be made tablished under this subsection. access to controlled areas and security-sen- available to the Secretary $10,000,000 for each ‘‘(8) MATERIAL AND MISSION SUPPORT.—In sitive information; of fiscal years 2003 through 2006 to carry out carrying out responsibilities under this Act, ‘‘(v) provisions for restricting vehicular ac- section 7(e) of the Ports and Waterways Safe- the Secretary may accept contributions of cess, as necessary, to designated port areas ty Act (33 U.S.C. 1226(e)), such sums to re- funds, material, services, and the use of per- or facilities; main available until expended. sonnel and facilities from public and private ‘‘(vi) provisions for restricting the intro- (c) AUTHORIZATION OF APPROPRIATIONS.— entities by contract or other arrangement if duction of firearms and other dangerous There are authorized to be appropriated to the confidentiality of security-sensitive in- weapons, as necessary, to designated port the Secretary $20,000,000 for fiscal year 2002 formation is maintained and access to such areas or facilities; to carry out section 7(e) of the Ports and Wa- information is limited appropriately. The ‘‘(vii) provisions for the use of appro- terways Safety Act (33 U.S.C. 1226(e)), such Secretary shall deposit any funds accepted priately qualified private security officers or sums to remain available until expended. under this section as miscellaneous receipts qualified State, local, or private law enforce- SEC. 104. ESTABLISHMENT OF LOCAL PORT SE- in the general fund of the United States ment personnel; CURITY COMMITTEES. Treasury.’’. ‘‘(viii) procedures for evacuation of people (a) IN GENERAL.—Section 7 of the Ports and from port areas in the event of a terrorist at- Waterways Safety Act (33 U.S.C. 1226), as (b) FUNDING.—Of the amounts made avail- able under section 122(b) there may be made tack or other emergency; amended by section 103, is further amended ‘‘(ix) a process for assessment and evalua- by adding at the end the following: available to the Secretary $3,000,000 for each of fiscal years 2003 through 2006 to carry out tion of the safety and security of port areas ‘‘(f) LOCAL PORT SECURITY COMMITTEES.— before port operations are resumed after a section 7(f) of the Ports and Waterways Safe- ‘‘(1) ESTABLISHMENT.—The Secretary shall terrorist attack or other emergency; and ty Act (33 U.S.C. 1226(f)), such sums to re- establish local port security committees. ‘‘(x) any other information the Secretary main available until expended. ‘‘(2) FUNCTIONS.—A local port security requires. (c) AUTHORIZATION OF APPROPRIATIONS.— committees established under this sub- ‘‘(3) INCORPORATION OF EXISTING SECURITY There are authorized to be appropriated to section shall— PLANS.—The Secretary may approve a mari- the Secretary $5,000,000 for each of fiscal ‘‘(A) help coordinate planning and other time facility security plan, or an amendment years 2002 and 2003 to carry out section 7(f) of port security activities; to an existing program or plan, that incor- the Ports and Waterways Safety Act (33 ‘‘(B) help make use of, and disseminate the porates— information made available under this sec- U.S.C. 1226(f)), such sums to remain available ‘‘(A) a security program of a marine ter- tion; until expended. minal operator tenant with access to a se- ‘‘(C) make recommendations concerning SEC. 105. MARITIME FACILITY SECURITY PLANS. cured area of the port, under such conditions initial security evaluations and port vulner- Section 7 of the Ports and Waterways Safe- as the Secretary deems appropriate; or ability assessments by identifying the ty Act, (33 U.S.C. 1226), as amended by sec- ‘‘(B) a maritime facility security plan of a unique characteristics of each port; tion 104, is further amended by adding at the port authority that incorporates a State or ‘‘(D) assist in the review of port vulner- end the following: local security program, policy, or law. ability assessments promulgated under this ‘‘(g) MARITIME FACILITY SECURITY PLANS.— ‘‘(4) APPROVAL PROCESS.— section; ‘‘(1) REGULATIONS TO ESTABLISH REQUIRE- ‘‘(A) IN GENERAL.—The Secretary shall re- ‘‘(E) assist in implementing the guidance MENT.—The Secretary, after consultation view and approve or disapprove each mari- promulgated under this section; with the Secretary of the Treasury and the time facility security plan submitted under ‘‘(F) annually review maritime security Attorney General, shall issue regulations es- regulations promulgated under this sub- plans for each local port authority, water- tablishing requirements for submission of a section. front facility operator, or operator of a pub- maritime facility security plan, as the Sec- ‘‘(B) RESUBMISSION OF DISAPPROVED lic or commercial structure located within retary determines necessary, by each port PLANS.—If the Secretary disapproves a mari- or adjacent to the marine environment; and authority, waterfront facility operator, or time facility security plan— ‘‘(G) assist the Captain-of-the-Port in con- operator of a public or commercial structure ‘‘(i) the Secretary shall notify the plan ducting a field security exercise at least located within or adjacent to the marine en- submitter in writing of the reasons for the once every 3 years to verify the effectiveness vironment (as defined in section 2101(15) of disapproval; and of one or more maritime security plans for a title 46, United States Code). The Secretary ‘‘(ii) the submitter shall submit a revised local port authority, waterfront facility op- shall ensure that the local port security maritime facility security plan within 180 erator, or operator of a public or commercial committee is consulted in the development days after receiving the notification of dis- structure located within or adjacent to the of a maritime facility security plan under approval. marine environment. those regulations. ‘‘(5) PERIODIC REVIEW AND RESUBMISSION.— ‘‘(3) USE OF EXISTING COMMITTEES.—In es- ‘‘(2) PURPOSE; SPECIFICITY; CONTENT.— Whenever appropriate, but no less frequently tablishing these local port security commit- ‘‘(A) PURPOSE.—A maritime facility secu- than once every 5 years, each port authority, tees, the Secretary may use or augment any rity plan shall provide a law enforcement marine terminal operator or other entity re- existing port or harbor safety committee or program and capability at the port that is quired to submit a maritime facility secu- port readiness committee, if the membership adequate to safeguard the public and to im- rity plan under regulations promulgated of the port security committee includes rep- prove the response to threats of crime and under this subsection shall review its plan, resentatives of— terrorism. make necessary or appropriate revisions, and ‘‘(A) the port authority or authorities; ‘‘(B) SPECIFICITY.—Notwithstanding other submit the results of its review and revised ‘‘(B) Federal, State and local government; provisions of this Act, the Secretary may plan to the Secretary. ‘‘(C) Federal, State, and local law enforce- impose specific, or different requirements on ‘‘(6) INTERIM SECURITY MEASURES.—The ment agencies; individual ports, port authorities, marine Secretary shall require each port authority, ‘‘(D) longshore labor organizations or terminal operators or other entities required waterfront facility operator, or operator of a transportation workers; to submit a maritime facility security plan public or commercial structure located with- ‘‘(E) local port-related business officials or under regulations promulgated under this in or adjacent to the marine environment, to management organizations; subsection. implement any necessary security measures, ‘‘(F) shipping companies, vessel owners, ‘‘(C) CONTENT.—A maritime facility secu- including the establishment of a secure pe- terminal owners and operators, truck, rail rity plan shall include— rimeter and positive access controls, until and pipeline operators, where such are in op- ‘‘(i) provisions for establishing and main- the maritime facility security plan for that eration;and taining physical security for port areas and port authority, waterfront facility operator,

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00217 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S13990 CONGRESSIONAL RECORD — SENATE December 20, 2001 or operator of a public or commercial struc- ‘‘(M) A felony involving willful destruction SEC. 107. MARITIME DOMAIN AWARENESS. ture located within or adjacent to the ma- of property. (a) IN GENERAL.—The Secretary shall con- rine environment is approved.’’. ‘‘(N) Smuggling. duct a study on ways to enhance maritime (c) AUTHORIZATION OF APPROPRIATIONS.— ‘‘(O) Theft of property in the custody of domain awareness through improved collec- There are authorized to be appropriated to the United States Customs Service. tion and coordination of maritime intel- the Secretary $3,500,000 for each of fiscal ‘‘(P) Attempt to commit, or conspiracy to ligence and submit a report on the findings years 2002 through 2006 to carry out section commit any of the offenses referred to in of that study to the Senate Committee on 7(g) of the Ports and Waterways Safety Act subparagraphs (A) through (O). Commerce, Science, and Transportation and (33 U.S.C. 1226(g)), such sums to remain ‘‘(5) ALTERNATIVE ARRANGEMENTS.—Not- the House of Representatives Committee on available until expended. withstanding paragraph (1), an individual Transportation and Infrastructure. may be employed in a security-sensitive po- SEC. 106. EMPLOYMENT INVESTIGATIONS AND (b) SPECIFIC MATTERS TO BE ADDRESSED.— RESTRICTIONS FOR SECURITY-SEN- sition although that individual would other- In the study, the Secretary shall— SITIVE POSITIONS. wise be disqualified from such employment if (1) identify actions and resources necessary Section 7 of the Ports and Waterways Safe- the employer establishes alternate security for multi-agency cooperative efforts to im- ty Act, (33 U.S.C. 1226), as amended by sec- arrangements acceptable to the Secretary. prove the maritime security of the United tion 105, is further amended by adding at the ‘‘(6) APPEALS PROCESS.—The Secretary States; end the following: shall establish an appeals process under this (2) specifically address measures necessary section for individuals found to be ineligible ‘‘(h) DESIGNATION OF CONTROLLED ACCESS to ensure the effective collection, dissemina- for employment under paragraph (3) that in- AREAS; PROTECTION OF SECURITY-SENSITIVE tion, and interpretation of maritime intel- cludes notice and an opportunity for a hear- INFORMATION; EMPLOYMENT INVESTIGATIONS ligence and data, information resource man- ing. AND CRIMINAL HISTORY RECORD CHECKS.— agement and database requirements, archi- ‘‘(7) ACCESS TO DATABASES.—Notwith- ‘‘(1) ACCESS AREAS; RESTRICTED INFORMA- tectural measures for cross-agency integra- standing any other provision of law to the TION REGULATIONS.—The Secretary, after tion, data sharing, correlation and safe- contrary, but subject to existing or new pro- consultation with the Secretary of the guarding of data, and cooperative analysis to cedural safeguards imposed by the Attorney Treasury and the Attorney General, shall identify and effectively respond to threats to General, the Secretary is authorized to ac- prescribe regulations to— maritime security; cess the Federal Bureau of Investigation’s (3) estimate the potential costs of estab- ‘‘(A) require, as necessary, the designation Integrated Automatic Fingerprinting Identi- of controlled access areas in the maritime lishing and operating such a new or linked fication System, the Fingerprint Identifica- database and provides recommendations on facility security plan for each waterfront fa- tion Record System, the Interstate Identi- cility and other public or commercial struc- what agencies should contribute to the cost fication Index, the National Crime Identi- of its operation; ture located within or adjacent to the ma- fication System, and the Integrated Entry rine environment; and (4) evaluate the feasibility of establishing and Exit Data System for the purpose of con- a joint interagency task force on maritime ‘‘(B) limit access to security-sensitive in- ducting or verifying the results of any back- formation, such as passenger and cargo intelligence; ground investigation or criminal records (5) estimate of potential costs and benefits manifests. check required by this subsection. ‘‘(2) SCREENING; BACKGROUND CHECKS.—In of utilizing commercial supercomputing ‘‘(8) RESTRICTIONS ON USE AND MAINTENANCE platforms and data bases to enhance infor- prescribing access limitations under this sec- OF INFORMATION.— tion, the Secretary may— mation collection and analysis capabilities ‘‘(A) SECRETARY MAY GIVE RESULTS OF IN- across multiple Federal agencies; and ‘‘(A) require that persons entering or VESTIGATION TO EMPLOYERS.—The Secretary (6) provide a suggested time frame for the exiting secure, restricted, or controlled ac- may transmit the results of a background development of such a system or database. cess areas undergo physical screening; check or criminal records check to a port au- (c) PARTICIPATION OF OTHER AGENCIES.— ‘‘(B) require appropriate escorts for per- thority, marine terminal operator, or other The Secretary shall consult with the Direc- sons without proper clearances or creden- entity the Secretary determines necessary tor of Central Intelligence, the Secretary of tials; and for carrying out the requirements of this State, the Secretary of the Treasury, the ‘‘(C) require employment investigations subsection. Secretary of Defense, the Attorney General, and criminal history record checks to ensure ‘‘(B) FOIA NOT TO APPLY.—Information ob- the Secretary of Agriculture, the Secretary that individuals who have unrestricted ac- tained by the Secretary under this sub- of Commerce, the Secretary of Energy, the cess to controlled areas or have access to se- section may not be made available to the Director of the Federal Emergency Manage- curity-sensitive information do not pose a public under section 552 of title 5, United ment Agency, and the heads of other depart- threat to national security or to the safety States Code. ments and agencies as necessary and invite and security of maritime commerce. ‘‘(C) CONFIDENTIALITY.—Except to the ex- their participation in the preparation of the ‘‘(3) DISQUALIFICATION FROM NEW OR CONTIN- tent necessary to carry out this subsection, UED EMPLOYMENT.—An individual may not be any information other than criminal acts or study and report required by subsection (a). employed in a security-sensitive position at offenses constituting grounds for ineligi- (d) DEADLINE.—The Secretary shall submit any waterfront facility or other public or bility for employment under paragraph (3) the report required by subsection (a) within commercial structure located within or adja- shall be maintained confidentially by the 180 days after the date of enactment of this cent to the marine environment if— Secretary and may be used only for making Act. ‘‘(A) the individual does not meet other determinations under this section. (e) AUTHORIZATION OF APPROPRIATIONS.— criteria established by the Secretary; or ‘‘(9) EFFECTIVENESS AUDITS.—The Sec- There are authorized to be appropriated to ‘‘(B) a background investigation or crimi- retary shall provide for the periodic audit of the Secretary $500,000 in fiscal year 2002 to nal records check reveals that— the effectiveness of employment investiga- carry out this section. ‘‘(i) within the previous 7 years the indi- tions and criminal history record checks re- SEC. 108. INTERNATIONAL PORT SECURITY. vidual was convicted, or found not guilty by quired by this subsection. (a) IN GENERAL.—Part A of subtitle II of reason of insanity of an offense described in ‘‘(10) USER FEES.— title 46, United States Code, is amended by paragraph (4); or ‘‘(A) IN GENERAL.—The Secretary and the adding at the end the following: ‘‘(ii) within the previous 5 years was re- Attorney General shall establish and collect ‘‘CHAPTER 25. INTERNATIONAL PORT leased from incarceration for committing an reasonable fees to pay expenses incurred by SECURITY. offense described in paragraph (4). the Federal government in carrying out any ‘‘Sec. ‘‘(4) DISQUALIFYING OFFENSES.—The of- investigation, criminal history record check, fenses referred to in paragraph (3)(B) are the fingerprinting, or identification verification ‘‘2501. Assessment. following: services provided for under this subsection. ‘‘2502. Notifying foreign authorities. ‘‘2503. Actions when ports not maintaining ‘‘(A) Murder. ‘‘(B) DEPOSIT OF AMOUNT RECEIVED.— ‘‘(B) Assault with intent to murder. Amounts received by the Attorney General and carrying out effective secu- ‘‘(C) Espionage. or Secretary under this section shall be cred- rity measures. ‘‘2504. Travel advisories concerning security ‘‘(D) Sedition. ited to the account in the Treasury from at foreign ports. ‘‘(E) Treason. which the expenses were incurred as offset- ‘‘2505. Suspensions. ‘‘(F) Rape. ting collections and shall be available to the ‘‘2506. Acceptance of contributions; joint ‘‘(G) Kidnaping. Attorney General and the Secretary upon venture arrangements. ‘‘(H) Unlawful possession, sale, distribu- the approval of Congress. tion, importation, or manufacture of an ex- ‘‘(11) SUBSECTION NOT IN DEROGATION OF ‘‘§ 2501. Assessment plosive or weapon. OTHER AUTHORITY.—Nothing in this sub- ‘‘(a) IN GENERAL.—At intervals the Sec- ‘‘(I) Extortion. section restricts any agency, instrumen- retary of Transportation considers nec- ‘‘(J) Armed or felony unarmed robbery. tality, or department of the United States essary, the Secretary shall assess the effec- ‘‘(K) Importation, manufacture, or dis- from exercising, or limits its authority to tiveness of the security measures maintained tribution of, or intent to distribute, a con- exercise, any other statutory or regulatory at— trolled substance. authority to initiate or enforce port security ‘‘(1) a foreign port— ‘‘(L) A felony involving a threat. standards.’’. ‘‘(A) served by vessels of the United States;

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‘‘(B) from which foreign vessels serve the ticket, to each passenger buying a ticket for ‘‘(c) CONGRESSIONAL NOTIFICATION.—The United States; or transportation between the United States Secretary of State shall immediately notify ‘‘(C) that poses a high risk of introducing and the port; Congress of any change in the status of a danger to United States ports and water- ‘‘(2) the Secretary may, after consultation travel advisory imposed pursuant to this sec- ways, United States citizens, vessels of the with the Secretaries of State and of the tion. United States or any other United States in- Treasury, prescribe conditions of port entry ‘‘§ 2505. Suspensions terests; and into the United States for any vessel arriv- ‘‘(a) IN GENERAL.—The President, without ‘‘(2) any other foreign port the Secretary ing from a port determined under this sub- prior notice or a hearing, shall suspend the considers appropriate. section to maintain ineffective security right of any vessel of the United States, and ‘‘(b) PROCEDURES AND STANDARDS.—The measures, or any vessel carrying cargo origi- the right of a person to trade with the Secretary shall conduct an assessment under nating from or transshipped through such a United States, to provide foreign sea trans- subsection (a) of this section— port, including refusing entry, inspection, or portation, and the right of a person to oper- ‘‘(1) in consultation with appropriate au- any other condition as the Secretary deter- ate vessels in foreign sea commerce, to or thorities of the government of the foreign mines may be necessary to ensure the safety from a foreign port, if the President finds country concerned and operators of vessels of United States ports and waterways; and that— of the United States serving the foreign port ‘‘(3) the Secretary may prohibit a United ‘‘(1) a condition exists that threatens the for which the Secretary is conducting the as- States or foreign vessel from providing safety or security of passengers, vessels, or sessment; transportation between the United States crew traveling to or from that port; and ‘‘(2) to establish the extent to which a for- and any other foreign port that is served by ‘‘(2) the public interest requires an imme- eign port effectively maintains and carries vessels navigating to or from a port found diate suspension of trade between the United out internationally recognized security not to maintain and carry out effective secu- States and that port. measures; and rity measures. ‘‘(b) DENIAL OF ENTRY.—If a person oper- ‘‘(3) by using a standard based on the ‘‘(b) EFFECTIVE DATE FOR SANCTIONS.—Any standards for port security and rec- action taken by the Secretary under sub- ates a vessel in violation of this section, the ommended practices of the International section (a) for a particular port shall take ef- President may deny the vessels of that per- Maritime Organization and other appro- fect— son entry to United States ports. priate international organizations. ‘‘(1) 90 days after the government of the ‘‘(c) PENALTY FOR VIOLATION.—A person ‘‘(c) CONSULTATION.—In carrying out this foreign country with jurisdiction or control violating this section is liable to the United section, the Secretary shall consult with— of that port is notified under section 2502 un- States Government for a civil penalty of not ‘‘(1) the Secretary of State— less the Secretary finds that the government more than $50,000. Each day a vessel utilizes ‘‘(A) on the terrorist or relevant criminal has brought the security measures at the a prohibited port shall be a separate viola- threat that exists in each country involved; port up to the standard the Secretary used in tion of this section. and making an assessment under section 2501 be- ‘‘§ 2506. Acceptance of contributions; joint ‘‘(B) identify foreign ports that— fore the end of that 90-day period; or venture arrangements ‘‘(i) are not under the de facto control of ‘‘(2) immediately upon the determination ‘‘In carrying out responsibilities under this the government of the foreign country in of the Secretary under subsection (a) if the chapter, the Secretary may accept contribu- which they are located; and Secretary finds, after consulting with the tions of funds, material, services, and the use ‘‘(ii) pose a high risk of introducing danger Secretary of State, that a condition exists of personnel and facilities from public and to international maritime commerce; and that threatens the safety or security of pas- private entities by contract or other ar- ‘‘(2) the Secretary of the Treasury and co- sengers, vessels, or crew traveling to or from rangement if the confidentiality of security- ordinate any such assessment with the the port. sensitive information is maintained and ac- United States Customs Service. ‘‘(c) STATE DEPARTMENT TO BE NOTIFIED.— cess to such information is limited appro- ‘‘§ 2502. Notifying foreign authorities The Secretary immediately shall notify the priately. The Secretary shall deposit any ‘‘(a) DISSEMINATION OF INFORMATION ABOUT Secretary of State of a finding that a port funds accepted under this section as mis- THE PROGRAM.—The Secretary shall work does not maintain and carry out effective se- cellaneous receipts in the general fund of the with the Secretary of State to facilitate the curity measures so that the Secretary of United States Treasury.’’. dissemination of port security program in- State may issue a travel advisory. (b) CONFORMING AMENDMENT.—The table of ‘‘(d) CONGRESSIONAL NOTIFICATION RE- formation to port authorities and marine chapters at the beginning of subtitle II of QUIRED.—The Secretary promptly shall sub- terminal operators in other countries. title 46, United States Code, is amended by mit to Congress a report (and classified ‘‘(b) SPECIFIC NOTIFICATIONS.—If the Sec- inserting the following new item in part A annex if necessary) identifying any port that retary of Transportation, after conducting after the item for chapter 23: the Secretary finds does not maintain and an assessment under section 2501, finds that ‘‘25. International Port Security ...... 2501’’. a port does not maintain and carry out effec- carry out effective security measures and de- scribe any action taken under this section (c) REPEALS.—Sections 902, 905, 907, 908, 909, tive security measures, the Secretary, with regard to that port. 910, 911, 912, and 913 of the International Mar- through the Secretary of State, shall notify ‘‘(e) ACTION CANCELED.—An action required itime and Port Security Act (46 U.S.C. App. the appropriate authorities of the govern- under this section is no longer required if the 1801, 1802, 1803, 1804, 1805, 1806, 1807, 1808, and ment of the foreign country of the finding Secretary, in consultation with the Sec- 1809), are repealed. and recommend the steps necessary to bring retary of State, decides that effective secu- (d) FOREIGN-FLAG VESSELS.—Within 6 the security measures in use at the port up rity measures are maintained and carried months after the date of enactment of this to the standard used by the Secretary of out at the port. The Secretary shall notify Act and every year thereafter, the Secretary, Transportation in making the assessment. Congress when the action is no longer re- in consultation with the Secretary of State, ‘‘§ 2503. Actions when ports not maintaining quired. shall provide a report to the Committees on and carrying out effective security meas- ‘‘§ 2504. Travel advisories concerning secu- Commerce, Science, and Transportation and ures rity at foreign ports Foreign Relations of the Senate, and the N ENERAL ‘‘(a) I G .—If the Secretary of ‘‘(a) IN GENERAL.—Upon being notified by Committees on Transportation and Infra- Transportation finds that a port does not the Secretary of Transportation that the structure and International Relations of the maintain and carry out effective security Secretary has determined that a condition House of Representatives that lists the fol- measures— exists that threatens the safety or security lowing information: ‘‘(1) the Secretary shall— of passengers, passenger vessels, or crew (1) A list of all nations whose flag vessels ‘‘(A) in consultation with the Secretaries traveling to or from a foreign port which the have entered United States ports in the pre- of State, Treasury, Agriculture, and the At- Secretary has determined under this chapter vious year. torney General, develop measures to protect to be a port which does not maintain and ad- (2) Of the nations on that list, a separate the safety and security of United States minister effective security measures, the list of those nations— ports from risks related to vessels arriving Secretary of State shall immediately issue a (A) whose registered flag vessels appear as from a foreign port that does not maintain travel advisory with respect to the port. The Priority III or higher on the Boarding Pri- an acceptable level of security; Secretary of State shall take the necessary ority Matrix maintained by the Coast Guard; ‘‘(B) publish the identity of the port in the steps to publicize the travel advisory widely. (B) that have presented, or whose flag ves- Federal Register; ‘‘(b) WHEN TRAVEL ADVISORY MAY BE CAN- sels have presented, false, intentionally in- ‘‘(C) have the identity of the port posted CELED.—The travel advisory required to be complete, or fraudulent information to the and displayed prominently at all United issued under subsection (a) of this section United States concerning passenger or cargo States ports at which scheduled passenger may be lifted only if the Secretary of Trans- manifests, crew identity or qualifications, or carriage is provided regularly to that port; portation, in consultation with the Sec- registration or classification of their flag and retary of State, has determined that effec- vessels; ‘‘(D) require each United States and for- tive security measures are maintained and (C) whose vessel registration or classifica- eign vessel providing transportation between administered at the port with respect to tion procedures have been found by the Sec- the United States and the port to provide which the Secretary of Transportation had retary to be noncompliant with inter- written notice of the decision, on or with the made the determination. national classifications or do not exercise

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00219 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S13992 CONGRESSIONAL RECORD — SENATE December 20, 2001 adequate control over safety and security (2) The training of students and instructors ‘‘(2) notwithstanding section 1104A(d), de- concerns; or in all aspects of prevention, detection, inves- termination of economic soundness for a se- (D) whose laws or regulations are not suffi- tigation, and reporting of criminal activities curity infrastructure project shall be based cient to allow tracking of ownership and reg- in the international maritime environment. upon the economic soundness of the appli- istration histories of registered flag vessels. (3) The provision of off-site training and cant and not the project; (3) Actions taken by the United States, certification courses and certified personnel ‘‘(3) guarantees or commitments to guar- whether through domestic action or inter- at United States and foreign ports used by antee may be made under this section to per- national negotiation, including agreements United States-flagged vessels, or by foreign- sons who are not citizens of the United at the International Maritime Organization flagged vessels with United States citizens as States as defined in section 2 of the Shipping under section 902 of the International Mari- passengers or crewmembers, to develop and Act, 1916 (46 U.S.C. App. 802). time and Port Security Act (46 U.S.C. App. enhance security awareness and practices. ‘‘(c) TRANSFER OF FUNDS.—The Secretary 1801), to improve transparency and security (c) TRAINING PROVIDED TO LAW ENFORCE- may accept the transfer of funds from any of vessel registration procedures in nations MENT AND SECURITY PERSONNEL.—The Sec- other department, agency, or instrumen- on the list under paragraph (2). retary is authorized to make the training op- tality of the United States Government and (4) Recommendations for legislative or portunities provided under this section avail- may use those funds to cover the cost (as de- other actions needed to improve security of able to any Federal, State, local, and private fined in section 502 of the Federal Credit Re- United States ports against potential threats law enforcement or maritime security per- form Act of 1990 (2 U.S.C. 61a)) of making posed by flag vessels of nations named in sonnel in the United States or in foreign guarantees or commitments to guarantee paragraph (2). ports used by United States-flagged vessels loans entered into under this section. ‘‘(d) ELIGIBLE PROJECTS.—A project is eligi- SEC. 109. COUNTER-TERRORISM AND INCIDENT with United States citizens as passengers or CONTINGENCY PLANS. crewmembers. ble for a loan guarantee or commitment (d) USE OF CONTRACT RESOURCES.—The Sec- under subsection (a) if it is for the construc- (a) IN GENERAL.—The Secretary, in coordi- tion or acquisition of new security infra- nation with the Director of the Federal Bu- retary shall employ existing Federal and structure that is— reau of Investigation, shall ensure that all contract resources to train and certify mari- ‘‘(1) equipment or facilities to be used for area maritime counter-terrorism and inci- time security professionals in accordance port security monitoring and recording; dent contingency plans are reviewed, revised, with the standards and curriculum developed ‘‘(2) security gates and fencing; and updated no less frequently than once under this Act. (e) ANNUAL REPORT.—The Secretary shall ‘‘(3) security-related lighting systems; every 3 years. transmit an annual report to the Senate ‘‘(4) remote surveillance systems; (b) LOCAL PORT SECURITY COMMITTEES.— Committee on Commerce, Science, and ‘‘(5) concealed video systems; or The Secretary shall ensure that port secu- Transportation and the House of Representa- ‘‘(6) other security infrastructure or equip- rity committees established under section tives Committee on Transportation and In- ment that contributes to the overall security 7(f) of the Ports and Maritime Safety Act (33 frastructure on the expenditure of appro- of passengers, cargo, or crewmembers. U.S.C. 2116(f)) are involved in the review, re- priated funds and the training under this vision, and updating of the plans. ‘‘SEC. 1402. GRANTS. section. ‘‘(a) FINANCIAL ASSISTANCE.—The Sec- (c) SIMULATION EXERCISES.—The Secretary (f) FUNDING.—Of the amounts made avail- shall ensure that— retary may provide financial assistance for able under section 122(b), there may be made eligible projects (within the meaning of sec- (1) simulation exercises are conducted an- available to the Secretary to carry out this tion 1401(d). nually for all such plans; and section— ‘‘(b) MATCHING REQUIREMENTS.— (2) actual practice drills and exercises are (1) $2,500,000 for each of fiscal years 2003 ‘‘(1) 75-PERCENT FEDERAL FUNDING.—Except conducted at least once every 3 years. and 2004, and as provided in paragraph (2), Federal funds UTHORIZATION OF APPROPRIATIONS.— (d) A (2) $3,000,000 for each of fiscal years 2005 for any eligible project under this section There are authorized to be appropriated to and 2006, shall not exceed 75 percent of the total cost the Secretary $1,000,000 for each of fiscal such sums to remain available until ex- of such project. years 2002 through 2006 to carry out this sec- pended. ‘‘(2) EXCEPTIONS.— tion, such sums to remain available until ex- (g) AUTHORIZATION OF APPROPRIATIONS— ‘‘(A) SMALL PROJECTS.—There are no pended. There are authorized to be appropriated to matching requirements for grants under sub- SEC. 110. MARITIME SECURITY PROFESSIONAL the Secretary to carry out this section— section (a) for projects costing not more TRAINING. (1) $5,500,000 for fiscal year 2002; than $25,000. (a) IN GENERAL.— (2) $3,000,000 for each of fiscal years 2003 ‘‘(B) HIGHER LEVEL OF SUPPORT REQUIRED.— (1) DEVELOPMENT OF STANDARDS.—Not later and 2004; and If the Secretary determines that a proposed than 6 months after the date of enactment of (3) $2,500,000 for each of fiscal years 2005 project merits support and cannot be under- this Act, the Secretary of Transportation and 2006. taken without a higher rate of Federal sup- shall develop standards and curriculum to SEC. 111. PORT SECURITY INFRASTRUCTURE IM- port, then the Secretary may approve grants allow for the training and certification of PROVEMENT. under this section with a matching require- maritime security professionals. In devel- (a) IN GENERAL.—The Merchant Marine ment other than that specified in paragraph oping these standards and curriculum, the Act, 1936 (46 U.S.C. App. 1101 et seq.) is (1). Secretary shall consult with the National amended by adding at the end the following: ‘‘(c) ALLOCATION.—The Secretary shall en- Maritime Security Advisory Committee es- ‘‘TITLE XIV—PORT SECURITY sure that financial assistance provided under tablished under section 7(d) of the Ports and INFRASTRUCTURE IMPROVEMENT subsection (a) during a fiscal year is distrib- Maritime Safety Act (33 U.S.C. 2116(d)). ‘‘SEC. 1401. LOAN GUARANTEES FOR PORT SECU- uted so that funds are awarded for eligible (2) SECRETARY TO CONSULT ON STANDARDS.— RITY INFRASTRUCTURE IMPROVE- projects that address emerging priorities or In developing standards under this section, MENTS. threats identified by the National Maritime the Secretary may, without regard to the ‘‘(a) IN GENERAL.—The Secretary of Trans- Security Advisory Committee established Federal Advisory Committee Act (5 U.S.C. portation, subject to the terms the Secretary under section 7(d) of the Ports and Water- App.), consult with the Federal Law Enforce- shall prescribe and after consultation with ways Safety Act (33 U.S.C. 1226(d)). ment Training Center, the United States the United States Coast Guard, the United ‘‘(d) PROJECT PROPOSALS.—Each proposal Merchant Marine Academy’s Global Mari- States Customs Service, and the National for a grant under this section shall include time and Transportation School, the Mari- Maritime Security Advisory Committee es- the following: time Security Council, the International As- tablished under section 102 of the Port and ‘‘(1) The name of the individual or entity sociation of Airport and Port Police, the Na- Maritime Security Act of 2001, may guar- responsible for conducting the project. tional Cargo Security Council, and any other antee or make a commitment to guarantee ‘‘(2) A comprehensive description of the Federal, State, or local government or law the payment of the principal of, and the in- need for the project, and a statement of the enforcement agency or private organization terest on, an obligation for port security in- project’s relationship to the security plan. or individual determined by the Secretary to frastructure improvements for an eligible ‘‘(3) A description of the qualifications of have pertinent expertise. project at any United States port. the individuals who will conduct the project. (b) MINIMUM STANDARDS.—The standards ‘‘(b) LIMITATIONS.—Guarantees or commit- ‘‘(4) An estimate of the funds and time re- established by the Secretary under sub- ments to guarantee under this section are quired to complete the project. section (a) shall include the following ele- subject to the extent applicable to all the ‘‘(5) Evidence of support of the project by ments: laws, requirements, regulations, and proce- appropriate representatives of States or ter- (1) The training and certification of mari- dures that apply to guarantees or commit- ritories of the United States or other govern- time security professionals in accordance ments to guarantee made under title XI, ex- ment jurisdictions in which the project will with accepted law enforcement and security cept that— be conducted. guidelines, policies, and procedures, includ- ‘‘(1) guarantees or commitments to guar- ‘‘(6) Information regarding the source and ing, as appropriate, recommendations for in- antee made under this section are eligible amount of matching funding available to the corporating a background check process for for not more than 87.5 percent of the actual applicant, as appropriate. personnel trained and certified in foreign cost of the security infrastructure improve- ‘‘(7) Any other information the Secretary ports. ment; considers to be necessary for evaluating the

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00220 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S13993 eligibility of the project for funding under for use at United States ports, such sums to ‘‘(ii) The carrier code, prefix code, or both. this title. remain available until expended. ‘‘(iii) The flight, voyage, or trip number. ‘‘SEC. 1403. ALLOCATION OF RESOURCES. (c) FUNDING FOR FISCAL YEAR 2002.—There ‘‘(iv) The date of scheduled arrival or date ‘‘In carrying out this title, the Secretary are authorized to be appropriated $145,000,000 of scheduled departure, as the case may be. may ensure that not less than $2,000,000 in for the United States Customs Service for ‘‘(v) The request for permit to proceed to loans and loan guarantees under section 1401, fiscal year 2002 for 1,200 new customs inspec- the destination, if applicable. and not less than $6,000,000 in grants under tor positions, 300 new customs agent posi- ‘‘(vi) The numbers and quantities from the section 1402, are made available for eligible tions, and other necessary port security posi- carrier’s master air waybill, bills of lading, projects (as defined in section 1401(d)) lo- tions, and for purchase and support of equip- or ocean bills of lading. cated in any State to which reference is ment (including camera systems for docks ‘‘(vii) The first port of lading of the cargo. and vehicle-mounted computers), canine en- made by name in section 607 of this Act dur- ‘‘(viii) A description and weight of the forcement for port security, and to update ing each of the fiscal years 2002 through cargo or, for a sealed container, the shipper’s computer systems to help improve customs 2006.’’. declared description and weight of the cargo. reporting procedures. (b) ANNUAL ACCOUNTING.—The Secretary of ‘‘(ix) The shippers name and address from Transportation shall submit an annual sum- SEC. 113. REVISION OF PORT SECURITY PLAN- all air waybills and bills of lading. NING GUIDE. mary of loan guarantees and commitments ‘‘(x) The consignee’s name and address The Secretary of Transportation, acting from all air waybills and bills of lading. to make loan guarantees under section 1401 through the Maritime Administration and ‘‘(xi) Notice that actual boarded quantities of the Merchant Marine Act, 1936, and grants after consultation with the Advisory Com- are not equal to air waybill or bills of lading made under section 1402 of that Act, to the mittee and the United States Coast Guard, Committee on Commerce, Science, and shall publish a revised version of the docu- quantities, except that a carrier is not re- Transportation and the House of Representa- ment entitled ‘‘Port Security: A National quired by this clause to verify boarded quan- tives Committee on Transportation and In- Planning Guide’’, incorporating the require- tities of cargo in sealed containers. frastructure and the Advisory Committee ments promulgated under section 7(g) of the ‘‘(xii) Transfer or transit information for through appropriate media of communica- Ports and Waterways Security Act (33 U.S.C. the cargo while it has been under the control tion, including the Internet. 2116(g)), within 3 years after the date of en- of the carrier. (c) FUNDING.—Of amounts made available actment of this Act, and make that revised ‘‘(xiii) Warehouse or other location of the under section 122(b), there may be made document available on the Internet. cargo while it has been under the control of available to the Secretary of Transpor- SEC. 114. SHARED DOCKSIDE INSPECTION FA- the carrier. tation— CILITIES. ‘‘(xiv) Any additional information that the (1) $9,000,000 for each of the fiscal years (a) IN GENERAL.—The Secretary of the Secretary by regulation determines is rea- 2003, 2004, 2005, and 2006 as guaranteed loan Treasury, the Secretary of Agriculture, the sonably necessary to ensure aviation, mari- costs (as defined in section 502(5) of the Fed- Secretary of Transportation, the Attorney time, and surface transportation safety pur- eral Credit Reform Act of 1990; 2 U.S.C. General, and the Administrator of the Gen- suant to those laws enforced and adminis- 661a(5)) under section 1401 of the Merchant eral Services Administration shall work with tered by the Customs Service. Marine Act, 1936, each other, the Advisory Committee, and the ‘‘(3) The Secretary by regulation shall re- (2) $10,000,000 for each of such fiscal years States to establish shared dockside inspec- quire nonvessel operating common carriers for grants under section 1402 of the Merchant tion facilities at United States ports for Fed- to meet the requirements of subparagraphs Marine Act, 1936, and eral and State agencies. (A) and (B).’’. (3) $1,000,000 for each such fiscal year to (b) FUNDING.—Of the amounts made avail- (2) CONFORMING AMENDMENTS.—Subpara- cover administrative expenses related to able under section 122(b), there may be made graphs (A) and (C) of section 431(d)(1) of such loan guarantees under section 1401 of the available to the Secretary of the Transpor- Act are each amended by inserting ‘‘or sub- Merchant Marine Act, 1936, and grants under tation, $1,000,000 for each of fiscal years 2003, section (b)(2)’’ before the semicolon. section 1402 of that Act, 2004, 2005, and 2006, such sums to remain (b) DOCUMENTATION OF CARGO.—Part II of such amounts to remain available until ex- available until expended, to establish shared title IV of the Tariff Act of 1930 is amended pended. dockside inspection facilities at United by inserting after section 431 the following (d) ADDITIONAL APPROPRIATIONS AUTHOR- States ports in consultation with the Sec- new section: IZED.—In addition to the amounts made retary of the Treasury, the Secretary of Ag- ‘‘SEC. 431A. DOCUMENTATION OF WATERBORNE available under subsection (c)(2), there are riculture, and the Attorney General. CARGO. (c) AUTHORIZATION OF APPROPRIATIONS.— authorized to be appropriated to the Sec- ‘‘(a) APPLICABILITY.—This section shall retary of Transportation— There are authorized to be appropriated to apply to all cargo to be exported moving by (1) $26,000,000 for each of fiscal years 2002 the Secretary of Transportation $1,000,000 for a vessel common carrier from a port in the fiscal year 2002 to establish shared dockside through 2006 to the Secretary as guaranteed United States. inspection facilities at United States ports loan costs (as defined in section 502(5) of the ‘‘(b) DOCUMENTATION REQUIRED.—(1) No in consultation with the Secretary of the Federal Credit Reform Act of 1990; 2 U.S.C. shipper of cargo subject to this section (in- Treasury, the Secretary of Agriculture, and 661a(5)) under section 1401 of the Merchant cluding an ocean transportation inter- the Attorney General. Marine Act, 1936; mediary that is a nonvessel-operating com- (2) $70,000,000 for each of fiscal years 2002 SEC. 115. MANDATORY ADVANCED ELECTRONIC mon carrier (as defined in section 3(17)(B) of INFORMATION FOR CARGO AND PAS- through 2006 to the Secretary for grants SENGERS AND OTHER IMPROVED the Shipping Act of 1984 (46 U.S.C. App. under section 1402 of the Merchant Marine CUSTOMS REPORTING PROCE- 1702(17)(B)) may tender or cause to be ten- Act, 1936; and DURES. dered to a vessel common carrier cargo sub- (3) $4,000,000 for each of fiscal years 2002 (a) CARGO INFORMATION.— ject to this section for loading on a vessel in through 2006 to the Secretary to cover ad- (1) IN GENERAL.—Section 431(b) of the Tar- a United States port, unless such cargo is ministrative expenses related to loan guar- iff Act of 1930 (19 U.S.C. 1431(b)) is amended— properly documented pursuant to this sub- antees and grants under paragraphs (8) and (A) by striking ‘‘Any manifest’’ and insert- section. (9), ing ‘‘(1) Any manifest’’; and ‘‘(2) For the purposes of this subsection, such sums to remain available until ex- (B) by adding at the end the following new cargo shall be considered properly docu- pended. paragraph: mented if the shipper submits to the vessel SEC. 112. SCREENING AND DETECTION EQUIP- ‘‘(2)(A) In addition to any other require- common carrier or its agent a complete set MENT. ment under this section, for every land, air, of shipping documents no later than 24 hours (a) FUNDING.—Of amounts made available or vessel carrier required to make entry or after the cargo is delivered to the marine under section 122(b), there may be made obtain clearance under the customs laws of terminal operator. available to the Commissioner of Customs the United States, the pilot, master, oper- ‘‘(3) A complete set of shipping documents for the purchase of nonintrusive screening ator, or owner of such carrier (or the author- shall include— and detection equipment for use at United ized agent of such owner or operator) shall ‘‘(A) for shipments for which a shipper’s States ports— provide by electronic transmission cargo export declaration is required a copy of the (1) $15,000,000 for fiscal year 2003, manifest information described in subpara- export declaration or, if the shipper files (2) $16,000,000 for fiscal year 2004, graph (B) in advance of such entry or clear- such declarations electronically in the Auto- (3) $18,000,000 for fiscal year 2005, and ance in such manner, time, and form as the mated Export system, the complete bill of (4) $19,000,000 for fiscal year 2006, Secretary shall prescribe. The Secretary lading, and the master or equivalent ship- such sums to remain available until ex- may exclude any class of land, aircraft, or ping instructions including the shipper’s pended. vessel for which he concludes the require- Automated Export System instructions; or (b) AUTHORIZATION OF APPROPRIATIONS.— ments of this subparagraph are not nec- ‘‘(B) for those shipments for which a ship- There are authorized to be appropriated to essary. per’s export declaration is not required, such the Commissioner $20,000,000 for each of fis- ‘‘(B) The information described in this sub- other documents or information as the Sec- cal years 2002 through 2006 to the Commis- paragraph is as follows: retary may by regulation prescribe. sioner of Customs for the purchase of non-in- ‘‘(i) The port of arrival or departure, ‘‘(4) The Secretary shall by regulation pre- trusive screening and detection equipment whichever is applicable. scribe the time, manner, and form by which

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00221 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S13994 CONGRESSIONAL RECORD — SENATE December 20, 2001 shippers shall transmit documents or infor- such entry or clearance in such manner, tined for United States ports are required to mation required under this subsection to the time, and form as the Secretary shall pre- transmit under section 431 of the Tariff Act Customs Service. scribe. of 1930 (19 U.S.C. 1431) and the Ports and Wa- ‘‘(c) LOADING UNDOCUMENTED CARGO PRO- ‘‘(b) INFORMATION DESCRIBED.—The infor- terways Safety Act (33 U.S.C. 1221 et seq.); HIBITED.— mation described in this subsection shall in- and ‘‘(1) No marine terminal operator (as de- clude for each person: (ii) be designed to meet the requirements fined in section 3(14) of the Shipping Act of ‘‘(1) Full name. of United States customs laws and other 1984 (46 U.S.C. App. 1702(14))) may load, or ‘‘(2) Date of birth and citizenship. laws regulating the importation of goods cause to be loaded, any cargo subject to this ‘‘(3) Gender. into the United States and to accommodate section on a vessel unless instructed by the ‘‘(4) Passport number and country of mechanisms for the collection of applicable vessel common carrier operating the vessel issuance. duties upon entry or removal from ware- that such cargo has been properly docu- ‘‘(5) United States visa number or resident house of such goods. mented in accordance with this section. alien card number, as applicable. (B) CUSTOMS CLEARANCE WAIVER.—The ‘‘(2) When cargo is booked by one vessel ‘‘(6) Passenger name record. Commissioner may grant a waiver of any common carrier to be transported on the ves- ‘‘(7) Such additional information that the United States Customs Service post-arrival sel of another vessel common carrier, the Secretary, by regulation, determines is rea- clearance requirement for goods inspected, booking carrier shall notify the operator of sonably necessary to ensure aviation and monitored for security and integrity in tran- the vessel that the cargo has been properly maritime safety pursuant to the laws en- sit, tracked, and pre-cleared under any such documented in accordance with this section. forced or administered by the Customs Serv- pilot program. The operator of the vessel may rely on such ice.’’. (3) CONSULTATION WITH OTHER INTERESTED notification in releasing the cargo for load- (d) DEFINITION.—Section 401 of the Tariff AGENCIES.—In developing and implementing ing aboard the vessel. Act of 1930 is amended by adding at the end a pilot program under paragraph (1) the ‘‘(d) REPORTING OF UNDOCUMENTED the following new subsections: Commissioner of Customs shall consult with CARGO.—A vessel common carrier shall no- ‘‘(t) LAND AIR AND VESSEL CARRIER.—The representatives of other Federal agencies tify the United States Customs Service of terms ‘land carrier’, ‘air carrier’, and ‘vessel with responsibilities related to the entry of any cargo tendered to such carrier that is carrier’ mean a carrier that transports by commercial goods into the United States to not properly documented pursuant to this land, air, or water, respectively, goods or ensure that those agencies’ missions are not section and that has remained in the marine passengers for payment or other consider- compromised by the pre-clearance. terminal for more than 48 hours after being ation, including money or services rendered. (4) PILOT PROGRAM TO BE TESTED AT MUL- delivered to the marine terminal, and the lo- ‘‘(u) VESSEL COMMON CARRIER.—The term TIPLE PORTS.—Any such pilot program devel- cation of the cargo in the marine terminal. ‘vessel common carrier’ has the meaning oped and implemented by the Commissioner For vessel common carriers that are mem- given the term ‘ocean common carrier’ in may be conducted at several different ports bers of vessel sharing agreements (or any section 3(16) of the Shipping Act of 1984 (46 in a manner that permits analysis and eval- other arrangement whereby a carrier moves U.S.C. App. 1702(16)) and the term ‘common uation of different technologies and takes cargo on another carrier’s vessel), the vessel carrier by water in interstate commerce’ as into account different kinds of goods and common carrier accepting the booking shall defined in section 1 of the Shipping Act, 1916 ports with different harbor, infrastructure, be responsible for reporting undocumented (46 U.S.C. App. 801).’’. climatic, geographical, and other character- cargo, without regard to whether it operates (e) OTHER REQUIREMENTS FOR IMPROVED RE- istics. the vessel on which the transportation is to PORTING PROCEDURES.—In addition to the (5) REPORT TO THE CONGRESS.—Within a be made. promulgation of manifesting information, year after a pilot program is implemented ‘‘(e) ASSESSMENT OF PENALTIES.—Whoever the United States Customs Service shall im- under paragraph (1), the Commissioner of violates subsection (b) of this section shall prove reporting of goods arriving at United Customs shall transmit a report to the Sen- be liable to the United States for civil pen- States ports— ate Committee on Commerce, Science, and alties in a monetary amount up to the value (1) by promulgating regulations to require, Transportation and the House of Representa- of the cargo, or the actual cost of the trans- notwithstanding sections 552 and 553 of the tives Committee on Transportation and In- portation, whichever is greater. Tariff Act of 1930 (19 U.S.C. 1552 and 1553), at frastructure that— ‘‘(f) SEIZURE OF UNDOCUMENTED CARGO.— such times as Customs may require prior to (A) evaluates the pilot program and its ‘‘(1) Any cargo that is not properly docu- the arrival of an in-bond movement of goods components; mented pursuant to this section and has re- at the initial port of unlading, that— (B) states the Commissioner’s view as to mained in the marine terminal for more than (A) information shall be filed electroni- whether any procedure, system, or tech- 48 hours after being delivered to the marine cally identifying the consignor, consignee, nology evaluated as part of the program of- terminal operator shall be subject to search, country of origin, and the Harmonized Tariff fers a higher level of security than requiring seizure, and forfeiture. Schedule of the United States 6-digit classi- imported goods to clear customs under exist- ‘‘(2) The shipper of any such cargo is liable fication of the goods; and ing procedures; to the marine terminal operator and to the (B) such information shall be to the best of (C) states the Commissioner’s view as to ocean carrier for demurrage and other appli- the filer’s knowledge, and shall not be con- the integrity of the procedures, technology, cable charges for any undocumented cargo sidered the entry for the goods under section or systems evaluated as part of the pilot pro- which has been notified to or searched or 484 of that Act (19 U.S.C. 1484) or subject to gram; seized by the Customs Service for the entire section 592 or 595a of that Act (19 U.S.C. 1592 (D) makes a recommendation with respect period the cargo remains under the order and or 1595a); and to whether the pilot program, or any proce- direction of the Customs Service. The ma- (2) by distributing the information re- dure, system, or technology should be incor- rine terminal operator and the ocean carrier ported under the regulations promulgated porated in a nationwide system for shall have a lien on the cargo for the amount under paragraph (1) or section 431(b)(2), 431A, preclearance of imports of waterborne goods; of the demurrage and other charges. or 431B of the Tariff Act of 1930 on a real- (E) describes the impact of the pilot pro- ‘‘(g) EFFECT ON OTHER PROVISIONS.—Noth- time basis to any Federal, State, or local gram on staffing levels at the Customs Serv- ing in this section shall be construed, inter- government agency that has a regulatory or ice and the potential effect full implementa- preted, or applied to relieve or excuse any law-enforcement interest in the goods. tion of the program on a nationwide basis party from compliance with any obligation (f) EFFECTIVE DATE.—The amendments would have on Customs Service staffing or requirement arising under any other law, made by subsections (a) through (d) of this level; and regulation, or order with regard to the docu- section shall take effect 45 days after the (F) states the Commissioner’s views as to mentation or carriage of cargo.’’. date of enactment of this Act. whether there is a method by which the (c) PASSENGER INFORMATION.—Part II of (g) PILOT PROGRAM FOR PRE-CLEARING IN- United States could validate foreign ports so title IV of the Tariff Act of 1930, as amended BOUND SHIPMENTS OF WATERBORNE CARGO.— that cargo from those ports is pre-approved by subsection (b), is further amended by in- (1) IN GENERAL.—If the Commissioner of for United States Custom Service purposes serting after section 431A the following new Customs determines that information from a on arrival at United States ports. section: pilot program for inspecting, monitoring, SEC. 116. PRE-ARRIVAL MESSAGES FROM VES- ‘‘SEC. 431B. PASSENGER AND CREW MANIFEST tracking, and pre-clearing inbound ship- SELS DESTINED TO UNITED STATES INFORMATlON REQUIRED FOR CAR- ments of waterborne cargo would improve PORTS. RIERS. the security and safety of ports, the Commis- The Ports and Waterways Safety Act (33 ‘‘(a) IN GENERAL.—For each person arriving sioner may develop and implement such a U.S.C. 1221 et seq.) is amended— or departing on an air or land carrier or ves- pilot program. (1) by striking ‘‘environment’’ in section sel required to make entry or obtain clear- (2) PROGRAM CHARACTERISTICS.— 2(a) (33 U.S.C. 1221(a)) and inserting ‘‘envi- ance under the customs laws of the United (A) IN GENERAL.—Any such pilot program ronment, and the safety and security of States, the pilot, master, operator, or owner shall— United States ports and waterways,’’; of such carrier (or the authorized agent of (i) take into account, and may be orga- (2) by striking paragraph (5) of section 4(a) such owner or operator) shall provide by nized on the basis of, prearrival information (33 U.S.C. 1223(a)) and inserting the fol- electronic transmission manifest informa- that commercial vessels entering the terri- lowing: tion described in subsection (b) in advance of torial waters of the United States or des- ‘‘(5) require—

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00222 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S13995 ‘‘(A) the receipt of pre-arrival messages (D) drug and illegal alien smuggling; become final, the Secretary may refer the from any vessel destined for a port or place (E) trade fraud; and matter to the Attorney General of the subject to the jurisdiction of the United (F) other criminal activity. United States, for collection in any appro- States; (2) MATCHING FUNDS REQUIRED.—The max- priate district court of the United States.’’. ‘‘(B) the message to include any informa- imum amount of any grant of funds made SEC. 120. SUSPENSION OF LIMITATION ON tion the Secretary determines to be nec- available under the program to a participant STRENGTH OF COAST GUARD. essary for the control of the vessel and the other than a department or agency of the (a) PERSONNEL END STRENGTHS.—Section safety and security of the port, waterways, United States for a technology development 661(a) of title 14, United States Code, is facilities, vessels, and marine environment; project may not exceed 75 percent of costs of amended by adding at the end the following: and that project. ‘‘If at the end of any fiscal year there is in ‘‘(C) the message to be transmitted in elec- (b) ELIGIBLE PROJECTS.—A project is eligi- effect a declaration of war or national emer- tronic form, or otherwise as determined by ble for a grant under subsection (a) if it is for gency, the President may defer the effective- the Secretary, in sufficient time to permit the construction, acquisition, testing, or de- ness of any end-strength and grade distribu- review before the vessel’s entry into port, ployment of surveillance equipment and tion limitation with respect to that fiscal and deny port entry to any vessel that fails technology capable of preventing or detect- year prescribed by law for any military or ci- to comply with the requirements of this ing terrorist or other criminal activity as de- vilian component of the Coast Guard, for a paragraph.’’; termined by the Secretary. period not to exceed 6 months after the end (3) by striking ‘‘environment’’ in section (c) ANNUAL ACCOUNTING; DISSEMINATION OF of the war or termination of the national 5(a) (33 U.S.C. 1224(a)) and inserting ‘‘envi- INFORMATION.—The Secretary shall submit emergency.’’. ronment, and the safety and security of an annual summary of grants under sub- (b) OFFICERS IN COAST GUARD RESERVE.— United States ports and waterways,’’; and section (a), together with a general descrip- Section 724 of title 14, United States Code, is tion of the tests and any technology trans- (4) by adding at the end of section 5 (33 amended by adding at the end thereof the fers under the program, to the Senate Com- U.S.C. 1224) the following: following: mittee on Commerce, Science, and Transpor- ‘‘(c) DEFERRAL OF LIMITATION.—If at the ‘‘Nothing in this section interferes with the tation and the House of Representatives end of any fiscal year there is in effect a dec- Secretary’s authority to require information Committee on Transportation and Infra- laration of war or national emergency, the under section 4(a)(5) before a vessel’s arrival structure. President may defer the effectiveness of any in a port or place subject to the jurisdiction (d) AUTHORIZATION OF APPROPRIATIONS.— end-strength and grade distribution limita- of the United States.’’. There are authorized to be appropriated to tion with respect to that fiscal year pre- SEC. 117. MARITIME SAFETY AND SECURITY the Secretary $15,000,000 for each of fiscal scribed by law for any military or civilian TEAMS. years 2002 through 2006, such sums to remain component of the Coast Guard Reserve, for a (a) IN GENERAL.—To enhance the domestic available until expended. period not to exceed 6 months after the end maritime security capability of the United SEC. 119. EXTENSION OF SEAWARD JURISDIC- of the war or termination of the national States, the Secretary shall establish such TION. emergency.’’. (a) DEFINITION OF TERRITORIAL WATERS.— maritime safety and security teams as are SEC. 121. ADDITIONAL REPORTS. Section 1 of title XIII of the Act of June 15, needed to safeguard the public and protect (a) ADDITIONAL SECURITY NEEDS.—Within 1 1917 (50 U.S.C. 195) is amended— vessels, harbors, ports, waterfront facilities, year after the date of enactment of this Act, (1) by striking ‘‘The term ‘United States’ and cargo in waters subject to the jurisdic- the Secretary shall transmit a report to the as used in this Act includes’’ and inserting tion of the United States from destruction, Senate Committee on Commerce, Science, the following: loss or injury from crime, or sabotage due to and Transportation and the House of Rep- ‘‘In this Act: terrorist activity, and to respond to such ac- resentatives Committee on Transportation ‘‘(a) UNITED STATES.—The term ‘United tivity in accordance with security plans de- and Infrastructure on the need for any addi- States’ includes’’; and veloped under section 7 of the Ports and Wa- tional security requirements or measures terways Safety Act (33 U.S.C. 2116). (2) by adding at the end the following: ‘‘(b) TERRITORIAL WATERS.—The term ‘‘ter- under this title in order to provide for na- (b) MISSION.—Each maritime safety and se- ritorial waters of the United States’’ in- tional security and protect the flow of com- curity team shall be trained, equipped and cludes all waters of the territorial sea of the merce. capable of being employed to— United States as described in Presidential (b) ANNUAL STATUS REPORT TO CONGRESS.— (1) deter, protect against, and rapidly re- Proclamation 5928 of December 27, 1988.’’. (1) IN GENERAL.—Notwithstanding section spond to threats of maritime terrorism; (b) CIVIL PENALTY FOR VIOLATION OF ACT OF 7(c) of the Ports and Waterways Safety Act (2) enforce moving or fixed safety or secu- JUNE 15, 1917.—Section 2 of title II of the Act (33 U.S.C. 1226(c)), the Secretary shall report rity zones established pursuant to law; of June 15, 1917 (50 U.S.C. 192), is amended— annually to the Senate Committee on Com- (3) conduct high speed intercepts; (1) by striking ‘‘IMPRISONMENT’’ in the sec- merce, Science, and Transportation and the (4) board, search, and seize any article or tion heading and inserting ‘‘IMPRISONMENT; House of Representatives Committee on thing on a vessel or waterfront facility found CIVIL PENALTIES’’; Transportation and Infrastructure on the to present a risk to the vessel, facility or (2) by inserting ‘‘(a) IN GENERAL.—’’ before status of port security in a form that does port; ‘‘If’’ in the first undesignated paragraph; not compromise, or present a threat to the (5) rapidly deploy to supplement United (3) by striking ‘‘(a) If any other’’ and in- disclosure of security-sensitive information States armed forces domestically or over- serting ‘‘(b) APPLICATION TO OTHERS.—If any about, the port security vulnerability assess- seas; other’’; and ments conducted under this Act. The report (6) respond to criminal or terrorist acts (4) by adding at the end the following: may include recommendations for further within the port so as to minimize, insofar as ‘‘(c) CIVIL PENALTY.— improvements in port security measures and possible, the disruption caused by such acts; ‘‘(1) IMPOSITION.—A person who is found, for any additional enforcement measures (7) assist with port vulnerability assess- after notice and an opportunity for a hear- necessary to ensure compliance with the ments required under this Act; and ing, to have violated any rule, regulation or port security plan requirements of this title. (8) carry out other such missions as are as- order issued under this Act, or found to have (2) SPECIFIC PORT EVALUATION.—The Sec- signed to it in support of the goals of this knowingly obstructed or interfered with the retary shall select a port for the purpose of Act. exercise of any power conferred by this Act, evaluating security plans and enhancements (c) COORDINATION WITH OTHER AGENCIES.— shall be liable to the United States for a civil and, in the first annual report under this To the maximum extent feasible, each mari- penalty, not to exceed $25,000 for each viola- subsection, the Secretary shall report on the time safety and security team shall coordi- tion. Each day of a continuing violation progress and enhancements of security plans nate its activities with other Federal, State, shall constitute a separate violation. The at that port and on how this Act has im- and local law enforcement and emergency re- amount of such civil penalty shall be as- proved security at that port. The Secretary sponse agencies. sessed by the Secretary, or the Secretary’s shall provide annual updates for that port in SEC. 118. RESEARCH AND DEVELOPMENT FOR designee, by written notice. In determining subsequent annual reports. CRIME AND TERRORISM PREVEN- the amount of such penalty, the Secretary (c) ANNUAL REPORT ON MARITIME SECURITY TION AND DETECTION TECH- shall take into account the nature, cir- AND TERRORISM.—Section 905 of the Inter- NOLOGY. cumstances, extent and gravity of the pro- national Maritime and Port Security Act (46 (a) GRANT PROGRAM.— hibited acts committed and, with respect to U.S.C. App. 1802) is amended by adding at the (1) IN GENERAL.—The Secretary, in con- the violator, the degree of culpability, any end thereof the following: ‘‘Beginning with sultation with the Advisory Committee, history of prior offenses, ability to pay, and the first report submitted under this section shall establish a grant program to fund eligi- such other matters as justice may require. after the date of enactment of the Port and ble projects for the development, testing, ‘‘(2) COMPROMISE, ETC.—The Secretary may Maritime Security Act of 2001, the Secretary and transfer of technology to enhance secu- compromise, modify, or remit, with or with- shall include a description of activities un- rity at United States ports with respect to out conditions, any civil penalty which is dertaken under title I of that Act and an security risks, including— subject to imposition or which has been im- analysis of the effect of those activities on (A) explosives or firearms; posed under this subsection. port security against acts of terrorism.’’. (B) weapons of mass destruction; ‘‘(3) COLLECTION.—If a person fails to pay (d) ANNUAL REPORT OF EXPENDITURE OF (C) chemical and biological weapons; an assessment of a civil penalty after it has FUNDS FOR TRAINING OF MARITIME SECURITY

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PROFESSIONALS.—The Secretary shall trans- (1) CAPTAIN-OF-THE-PORT.—The term ‘‘Cap- SEC. 203. NATIONAL MARITIME TRANSPOR- mit an annual report to the Senate Com- tain-of-the-Port’’ means the United States TATION SECURITY PLAN. mittee on Commerce, Science, and Transpor- Coast Guard’s Captain-of-the-Port. Section 7 of the Ports and Waterways Safe- tation and the House of Representatives (2) SECRETARY.—Except as otherwise pro- ty Act (33 U.S.C. 1226), as amended by section Committee on Transportation and Infra- vided, the term ‘‘Secretary’’ means the Sec- 106 of this Act, is amended by adding at the structure on the expenditure of appropriated retary of Transportation. end the following: ‘‘(i) NATIONAL MARITIME TRANSPORTATION funds and the development of training and (4) ADVISORY COMMITTEE.—The term ‘‘Advi- certification programs under section 111 of sory Committee’’ means the National Mari- SECURITY PLAN.— this title. time Security Advisory Committee estab- ‘‘(1) IN GENERAL.—The Secretary, in con- sultation with appropriate Federal agencies, (e) ACCOUNTING.—The Commissioner of lished under section 7(d) of the Ports and Customs shall submit a report for each of fis- Waterways Safety Act (33 U.S.C. 1226(d)). shall prepare and publish a National Mari- time Transportation Security Plan for pre- cal years 2002 through 2006 to the Senate (5) MARINE TERMINAL OPERATOR.—The term Committee on Commerce, Science, and ‘‘marine terminal operator’’ has the meaning vention and response to maritime crime and Transportation and the House of Representa- given that term in section 1702(14) of title 46, terrorism. The Secretary shall consult with tives Committee on Transportation and In- United States Code. the National Maritime Security Advisory frastructure on the expenditure of funds ap- Committee in preparation of the National TITLE II—ADDITIONAL MARITIME SAFETY Maritime Transportation Security Plan. propriated pursuant to section 113 of this AND SECURITY RELATED MEASURES title. ‘‘(2) CONTENTS OF PLAN.—The Plan shall SEC. 201. EXTENSION OF DEEPWATER PORT ACT provide for efficient, coordinated, and effec- (f) REPORT ON TRAINING CENTER.—The Com- TO NATURAL GAS. mandant of the United States Coast Guard, tive action to prevent and respond to acts of The following provisions of the Deepwater maritime crime or terrorism, and shall in- in conjunction with the Secretary of the Port Act of 1974 (33 U.S.C. 1501 et seq.) are clude— Navy, shall submit to Congress a report, at each amended by inserting ‘‘or natural gas’’ ‘‘(A) allocation of duties and responsibil- the time they submit their fiscal year 2004 after ‘‘oil’’ each place it appears: ities among Federal departments and agen- budget, on the life cycle costs and benefits of (1) Section 2(a) (33 U.S.C. 1501(a)). cies in coordination with State and local creating a Center for Coastal and Maritime (2) Section 3(9) (33 U.S.C. 1502(9)). agencies and port authorities; Security. The purpose of the Center would be (3) Section 4(a) (33 U.S.C. 1503(a)). ‘‘(B) identification, procurement, mainte- to provide an integrated training complex to (4) Section 5(c)(2)(G) and (H) (33 U.S.C. nance, and storage of equipment and sup- prevent and mitigate terrorist threats 1504(c)(2)(G) and (H)). plies; against coastal and maritime assets of the (5) Section 5(i)(2)(B) (33 U.S.C. 1504(i)(2)(B)). ‘‘(C) procedures and techniques to be em- United States, including ports, harbors, (6) Section 5(i)(3)(C) (33 U.S.C. 1504 ployed in preventing and responding to acts ships, dams, reservoirs, and transport nodes. (i)(3)(C)). of crime or terrorism; SEC. 122. 4-YEAR REAUTHORIZATION OF TON- (7) Section 8 (33 U.S.C. 1507). ‘‘(D) establishment of procedures for effec- NAGE DUTIES. (8) Section 21(a) (33 U.S.C. 1520(a)). tive liaison with State and local govern- (a) IN GENERAL.— SEC. 202. ASSIGNMENT OF COAST GUARD PER- ments and emergency responders including (1) EXTENSION OF DUTIES.—Section 36 of the SONNEL AS SEA MARSHALS AND EN- law enforcement and fire response; Act of August 5, 1909 (36 Stat. 111; 46 U.S.C. HANCED USE OF OTHER SECURITY ‘‘(E) establishment of criteria and proce- App. 121), is amended by striking ‘‘through PERSONNEL. dures to ensure immediate and effective Fed- 2002,’’ each place it appears and inserting (a) IN GENERAL.—Section 7(b) of the Ports eral identification of, and response to, acts ‘‘through 2006,’’. and Waterways Safety Act (33 U.S.C. 1226(b)) of maritime crime or terrorism, that result (2) CONFORMING AMENDMENT.—The Act enti- is amended— in a substantial threat to the welfare of the tled ‘‘An Act concerning tonnage duties on (1) by striking ‘‘and’’ after the semicolon United States; vessels entering otherwise than by sea’’, ap- in paragraph (1); ‘‘(F) designation of a Federal official to be proved March 8, 1910 (36 Stat 234; 46 U.S.C. (2) by striking ‘‘terrorism.’’ in paragraph the Federal maritime security coordinator App. 132), is amended by striking ‘‘through (2) and inserting ‘‘terrorism;’’ and for each area for which an area maritime se- 2002,’’ and inserting ‘‘through 2006,’’. (3) by adding at the end the following: curity plan is required to be prepared; (b) AVAILABILITY OF FUNDS.—Amounts de- ‘‘(3) dispatch properly trained and qualified ‘‘(G) establishment of procedures for the posited in the general fund of the Treasury armed Coast Guard personnel aboard govern- coordination of activities of— as receipts of tonnage charges collected as a ment, private, and commercial structures ‘‘(i) Coast Guard maritime safety and secu- result of the amendments made by sub- and vessels to deter, prevent, or respond to rity teams established under this section; section (a) shall be made available, only to acts of terrorism or otherwise provide for the ‘‘(ii) Federal maritime security coordina- the extent provided in advance in appropria- safety and security of the port, waterways, tors; tions Act, in each of fiscal years 2003 through facilities, marine environment, and per- ‘‘(iii) area maritime security committees; 2006 to carry out this title, as provided in sonnel; and ‘‘(iv) local port security committees; and sections 102(b), 103(b), 104(b), 110(f), 111(c), ‘‘(4) require the owner and operator of a ‘‘(v) the National Maritime Security Advi- 112(a) and 114(b) of this title. commercial structure or the owner, oper- sory Committee. (c) RECEIPTS CREDITED AS OFFSETTING COL- ator, charterer, master, or person in charge ‘‘(3) REVISION AUTHORITY.—The Secretary LECTIONS.—Notwithstanding section 3302 of of a vessel to provide the appropriate level of may, from time to time, as the Secretary title 31, United States Code, duties collected security as necessary, including armed secu- deems advisable, revise or otherwise amend under section 36 of the Act of August 5, 1909 rity.’’. the National Maritime Transportation Secu- (36 Stat. 111; 46 U.S.C. App. 121) as amended (b) REPORT ON USE OF NON-COAST GUARD PERSONNEL.—The Secretary of the depart- rity Plan. by subsection (a)(1) of this section— ment in which the Coast Guard is operating ‘‘(4) PLAN TO BE FOLLOWED.—After publica- (1) shall be credited as offsetting collec- shall evaluate and report to the Congress tion of the Plan, the planning and response tions to the account that finances the activi- on— to acts of maritime crime and terrorism ties and services authorized by sections 110, (1) the potential use of Federal, State, or shall, to the greatest extent possible, be in 112, and 114 of this Act, section 7(d), (e), and local government personnel, and documented accordance with the Plan. (f) of the Ports and Waterways Safety Act (33 United States Merchant Marine personnel, to ‘‘(5) COPY TO THE CONGRESS.—The Sec- U.S.C. 2116(d), (e), and (f)) (as added by sec- supplement Coast Guard personnel under retary shall furnish a copy of the Plan to the tions 102, 103, and 104 of this Act), and sec- section 7(b)(3) of the Ports and Waterways Senate Committee on Commerce, Science, tions 1401 and 1402 of the Merchant Marine Safety Act (33 U.S.C. 1226(b)(3)); and Transportation and the House of Rep- Act, 1936 (as added by section 111 of this Act); (2) the possibility of using personnel other resentatives Committee on Transportation (2) shall be available for expenditure only than Coast Guard personnel to carry out and Infrastructure.’’. to pay the costs of such activities and serv- Coast Guard personnel functions under that ices; and SEC. 204. AREA MARITIME SECURITY COMMIT- section and whether additional legal author- TEES AND AREA MARITIME SECU- (3) shall remain available until expended. ity would be necessary to use such personnel RITY PLANS. (c) LIMITATION; DEPOSIT OF FEES.—No for such functions; and Section 7 of the Ports and Waterways Safe- amounts may be collected under section 36 of (3) the possibility of utilizing the United ty Act (33 U.S.C. 1226), as amended by section the Act of August 5, 1909 (36 Stat. 111; 46 States Merchant Marine Academy or State 203, is further amended by adding at the end U.S.C. App. 121) as amended by subsection maritime academies to provide training car- the following: (a)(1) of this section, or credited as provided rying out duties under that section. ‘‘(j) AREA MARITIME SECURITY COMMITTEES by subsection (b), except to the extent pro- (c) AUTHORIZATION OF APPROPRIATIONS.— AND AREA MARITIME SECURITY PLANS.— vided in advance in appropriations Acts. There are authorized to be appropriated to ‘‘(1) IN GENERAL.—There is established for Such amounts shall be used in each of fiscal the Secretary of the department in which each area designated by the Secretary an years 2003 through 2006 as provided in sec- the Coast Guard is operating $13,000,000 in area maritime security committee com- tions 102(b), 103(b), 104(b), 110(f), 111(c), 112(a) each of the fiscal years 2002-2006 to carry out prised of members appointed by the Sec- and 114(b) of this title. section 7(b) of the Ports and Waterways retary. The Secretary may designate any ex- SEC. 123. DEFINITIONS. Safety Act (33 U.S.C. 1226(b)), all such funds isting local port security committee as an In this title: to remain available until expended. area maritime security committee for the

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00224 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S13997 purposes of this subsection. The Federal Ad- SEC. 207. ENHANCED CARGO IDENTIFICATION Sec. 214. The official Federal Internet site visory Committee Act (5 U.S.C. App.) does AND TRACKING. on bioterrorism. not apply to an area maritime security com- (a) TRACKING PROGRAM.—The Secretaries of Sec. 215. Technical amendments. mittee. the Treasury and Transportation shall estab- Sec. 216. Regulation of biological agents and ‘‘(2) FUNCTION.—Each area maritime secu- lish a joint task force to work with ocean toxins. rity committee, under the direction of the shippers and ocean carriers in the develop- TITLE III—IMPROVING STATE AND Federal maritime security coordinator for ment of performance standards for systems LOCAL PREPAREDNESS its area, shall— to track data for shipments, containers, and Subtitle A—Emergency Measures To ‘‘(A) prepare an area maritime security contents— Improve State and Local Preparedness (1) to improve the capacity of shippers and plan for its area; and Sec. 301. State bioterrorism preparedness others to limit cargo theft and tampering; ‘‘(B) work with State and local officials to and response block grant. enhance the contingency planning of those and Subtitle B—Improving Local Preparedness officials and to assure pre-planning of joint (2) to track the movement of cargo, and Response Capabilities response efforts, including appropriate pro- through the Global Positioning System or cedures for prevention and response to acts other systems, within the United States, Sec. 311. Designated bioterrorism response of maritime crime or terrorism. particularly for in-bond shipments. medical centers. Sec. 312. Designated State public emergency ‘‘(3) AREA MARITIME SECURITY PLAN RE- (b) PERFORMANCE STANDARDS FOR ANTI- announcement plan. QUIREMENT.—Each area maritime security TAMPERING DEVICES.—The Secretaries of the Sec. 313. Training for pediatric issues sur- committee shall prepare an area maritime Treasury and Transportation shall work rounding biological agents used security plan for its area and submit it to with the National Institutes of Standards and Technology to develop enhanced per- in warfare and terrorism. the Secretary for approval. The area mari- Sec. 314. General Accounting Office report. time security plan shall— formance standards for in-bond seals and locks for use on or in containers used for Sec. 315. Additional research. ‘‘(A) when implemented in conjunction Sec. 316. Sense of the Senate. water-borne cargo shipments. with the national maritime transportation TITLE IV—DEVELOPING NEW COUNTER- SEC. 208. ENHANCED CREWMEMBER IDENTIFICA- security plan, be adequate to prevent or rap- MEASURES AGAINST BIOTERRORISM idly and effectively respond to an act of mar- TION. Sec. 401. Limited antitrust exemption. itime crime or terrorism in or near the area; The Secretary of Transportation, in con- Sec. 402. Developing new countermeasures ‘‘(B) describe the area covered by the plan, sultation with the Attorney General, may against bioterrorism. including the areas of population or special require crewmembers aboard vessels calling on United States ports to carry and present Sec. 403. Sequencing of priority pathogens. economic, environmental or national secu- Sec. 404. Accelerated countermeasure re- rity importance that might be damaged by upon demand such identification as the Sec- retary determines. search and development. an act of maritime crime or terrorism; Sec. 405. Accelerated approval of priority ‘‘(C) describe in detail how the plan is inte- SA 2691. Mr. REID (for Mr. ALLEN) countermeasures. grated with other area maritime security Sec. 406. Use of animal trials in the approval plans, facility security plans, and vessel se- proposed an amendment to the bill S. of priority countermeasures. curity plans under this section; 1858, to permit the closed circuit tele- Sec. 407. Miscellaneous provisions. ‘‘(D) include any other information the vising of the criminal trial of Zacarias TITLE V—PROTECTING THE SAFETY AND Secretary requires; and Moussaoui for the victims of Sep- SECURITY OF THE FOOD SUPPLY ‘‘(E) be updated periodically by the area tember 11th; as follows: Subtitle A—General Provisions To Expand maritime security committee. On page 2, line 5, strike ‘‘including’’ and and Upgrade Security ‘‘(4) REVIEW BY SECRETARY.—The Secretary insert ‘‘in’’. Sec. 511. Food safety and security strategy. shall— On page 2, line 6, after ‘‘San Francisco,’’ Sec. 512. Expansion of Animal and Plant ‘‘(A) review and approve area maritime se- insert ‘‘and such other locations the trial Health Inspection Service ac- curity plans under this subsection; and court determines are reasonably necessary,’’. tivities. ‘‘(B) periodically review previously ap- Sec. 513. Expansion of Food Safety Inspec- proved area maritime security plans.’’. SA 2692. Mr. REID (for MR. FRIST (for tion Service activities. SEC. 205. VESSEL SECURITY PLANS. himself, Mr. KENNEDY, and Mr. GREGG)) Sec. 514. Expansion of Food and Drug Ad- (a) IN GENERAL.—Section 4(a) of the Ports proposed an amendment to the bill ministration activities. and Waterways Safety Act (33 U.S.C. 1223(a)) H.R. 3448, to improve the ability of the Sec. 515. Biosecurity upgrades at the De- is amended— United States to prevent, prepare for, partment of Agriculture. (1) by striking ‘‘and’’ after the semicolon Sec. 516. Biosecurity upgrades at the De- and respond to bioterrorism and other partment of Health and Human in paragraph (4); public health emergencies; as follows: (2) by striking ‘‘environment.’’ in para- Services. Strike all after the enacting clause and in- Sec. 517. Agricultural biosecurity. graph (5) and inserting ‘‘environment; and’’; sert the following: Sec. 518. Biosecurity of food manufacturing, and processing, and distribution. (3) by adding at the end the following: SECTION 1. SHORT TITLE; TABLE OF CONTENTS. ‘‘(6) may issue regulations establishing re- (a) SHORT TITLE.—This Act may be cited as Subtitle B—Protection of the Food Supply quirements for vessel security plans and pro- the ‘‘Bioterrorism Preparedness Act of 2001’’. Sec. 531. Administrative detention. (b) TABLE OF CONTENTS.—The table of con- grams for vessels calling on United States Sec. 532. Debarment for repeated or serious tents of the Act is as follows: ports.’’. food import violations. Sec. 1. Short title; table of contents. Sec. 533. Maintenance and inspection of (b) AUTHORIZATION OF APPROPRIATIONS.— records for foods. There are authorized to be appropriated to TITLE I—NATIONAL GOALS FOR Sec. 534. Registration of food manufac- the Secretary of the department in which BIOTERRORISM PREPAREDNESS turing, processing, and han- the Coast Guard is operating $2,000,000 for Sec. 101. Amendment to the Public Health dling facilities. Service Act. each of fiscal years 2002 through 2006 to carry Sec. 535. Prior notice of imported food ship- out section 4(a)(6) of the Ports and Water- TITLE II—IMPROVING THE FEDERAL ments. ways Safety Act (33 U.S.C. 1223(a)(6)), such RESPONSE TO BIOTERRORISM Sec. 536. Authority to mark refused articles. sums to remain available until expended. Subtitle A—Additional Authorities Sec. 537. Authority to commission other SEC. 206. PROTECTION OF SECURITY-RELATED Sec. 201. Additional authorities of the Sec- Federal officials to conduct in- INFORMATION. retary; Strategic National spections. Section 7(c) of the Ports and Waterways Pharmaceutical Stockpile. Sec. 538. Prohibition against port shopping. Safety Act (33 U.S.C. 1226(c)) is amended to Sec. 202. Improving the ability of the Cen- Sec. 539. Grants to States for inspections. read as follows: ters for Disease Control and Sec. 540. Rule of construction. Subtitle C—Research and Training To ‘‘(c) NONDISCLOSURE OF INFORMATION.—Not- Prevention to respond effec- withstanding any other provision of law, in- tively to bioterrorism. Enhance Food Safety and Security formation developed under this section, and Subtitle B—Coordination of Efforts and Sec. 541. Surveillance and information vessel security plan information developed Responses grants and authorities. under section 4(a)(6) of this Act (33 USC Sec. 211. Assistant Secretary of Emergency Sec. 542. Agricultural bioterrorism research 1223(a)(6)), is not required to be disclosed to Preparedness; National Dis- and development. the public. This includes information related aster Medical System. TITLE I—NATIONAL GOALS FOR to security plans, procedures, or programs Sec. 212. Expanded authority of the Sec- BIOTERRORISM PREPAREDNESS for passenger vessels or passenger terminals retary of Health and Human SEC. 101. AMENDMENT TO THE PUBLIC HEALTH authorized under this Act, and any other in- Services to respond to public SERVICE ACT. formation, including maritime facility secu- health emergencies. The Public Health Service Act (42 U.S.C. rity plans, vessel security plans and port vul- Sec. 213. Public health preparedness and re- 201 et seq.) is amended by adding at the end nerability assessments.’’. sponse to a bioterrorist attack. the following:

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00225 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S13998 CONGRESSIONAL RECORD — SENATE December 20, 2001 ‘‘TITLE XXVIII—STRENGTHENING THE NA- the Secretary shall prepare and submit to (B) by inserting ‘‘$60,000,000 for fiscal year TION’S PREPAREDNESS FOR BIOTER- Congress a report concerning— 2002,’’; and RORISM ‘‘(1) activities conducted under section (3) by adding at the end the following: ‘‘SEC. 2801. CONGRESSIONAL FINDINGS ON BIO- 319F(b); ‘‘(c) IMPROVING PUBLIC HEALTH LABORA- TERRORISM PREPAREDNESS. ‘‘(2) the characteristics that may render a TORY CAPACITY.— ‘‘Congress finds that the United States rural community uniquely vulnerable to a ‘‘(1) IN GENERAL.—The Secretary shall pro- should further develop and implement a co- biological threat or attack, including dis- vide for the establishment of a coordinated ordinated strategy to prevent, and if nec- tance, lack of emergency transport, hospital network of public health laboratories to as- essary, to respond to biological threats or at- or laboratory capacity, lack of integration of sist with the detection of and response to a tacks upon the United States. Such strategy Federal or State public health networks, biological threat or attack, that may, at the should include measures for— workforce deficits, or other relevant condi- discretion of the Secretary, include labora- ‘‘(1) enabling the Federal Government to tions; tories that serve as regional reference lab- provide health care assistance to States and ‘‘(3) in any case in which the Secretary de- oratories. localities in the event of a biological threat termines that additional legislative author- ‘‘(2) AUTHORITY.—The Secretary may or attack; ity is necessary to effectively strengthen the award grants, contracts, or cooperative ‘‘(2) improving public health, hospital, lab- preparedness of rural communities for re- agreements to carry out paragraph (1). oratory, communications, and emergency re- sponding to a biological threat or attack, the ‘‘(3) COORDINATION.—To the maximum ex- sponse personnel preparedness and respon- recommendations of the Secretary with re- tent practicable, the Secretary shall ensure siveness at the State and local levels; spect to such legislative authority; and that activities conducted under paragraph (1) ‘‘(3) rapidly developing and manufacturing ‘‘(4) the need for and benefits of a National are coordinated with existing laboratory pre- needed therapies, vaccines, and medical sup- Disaster Response Medical Volunteer Service paredness activities. plies; and that would be a private-sector, community- ‘‘(4) LOCAL DISCRETION.—Use of regional ‘‘(4) enhancing the protection of the na- based rapid response corps of medical volun- laboratories, if established under paragraph tion’s food supply and protecting agriculture teers. (1), shall be at the discretion of the public against biological threats or attacks.’’. ‘‘SEC. 2812. STRATEGIC NATIONAL PHARMA- health agencies of the States. CEUTICAL STOCKPILE. TITLE II—IMPROVING THE FEDERAL ‘‘(5) PROHIBITED USES.—An eligible entity ‘‘(a) IN GENERAL.—The Secretary, in co- RESPONSE TO BIOTERRORISM may not use amounts received under this ordination with the Secretary of Veterans subsection to— Subtitle A—Additional Authorities Affairs, shall maintain a strategic stockpile ‘‘(A) purchase or improve land or purchase SEC. 201. ADDITIONAL AUTHORITIES OF THE SEC- of vaccines, therapies, and medical supplies any building or other facility; or RETARY; STRATEGIC NATIONAL that are adequate, as determined by the Sec- ‘‘(B) construct, repair, or alter any build- PHARMACEUTICAL STOCKPILE. retary, to meet the health needs of the ing or other facility. Title XXVIII of the Public Health Service United States population, including children ‘‘(6) SUPPLEMENT NOT SUPPLANT.—Funds Act, as added by section 101, is amended by and other vulnerable populations, for use at appropriated under this subsection shall be adding at the end the following: the direction of the Secretary, in the event used to supplement and not supplant other ‘‘Subtitle A—Improving the Federal Response of a biological threat or attack or other pub- Federal, State, and local public funds pro- to Bioterrorism lic health emergency. vided for activities under this subsection. ‘‘(b) RULE OF CONSTRUCTION.—Nothing in ‘‘(7) AUTHORIZATION OF APPROPRIATIONS.— ‘‘SEC. 2811. AUTHORITY OF THE SECRETARY RE- subsection (a) shall be construed to prohibit LATED TO BIOTERRORISM PRE- There is authorized to be appropriated to PAREDNESS. the Secretary from including in the stock- carry out this subsection, $59,500,000 for fis- pile described in such subsection such vac- ‘‘(a) PLAN.—To meet the objectives of this cal year 2002, and such sums as may be nec- title (and the amendments made by the Bio- cines, therapies, or medical supplies as may essary for each of fiscal years 2003 through terrorism Preparedness Act of 2001), and to be necessary to meet the needs of the United 2006.’’. help the United States fully prepare for a bi- States in the event of a nuclear, radiological, or chemical attack or other public health (b) EDUCATION AND TRAINING.—Section ological threat or attack, the Secretary, con- 319F(e) of the Public Health Service Act (42 sistent with the recommendations and ac- emergency. ‘‘(c) DEFINITION.—In this section, the term U.S.C. 247d6(e)) is amended by adding at the tivities of the working group established ‘stockpile’ means— end the following flush sentence: under section 319F(a), shall develop and im- ‘‘(1) a physical accumulation of the mate- ‘‘The education and training activities de- plement a coordinated plan to meet such ob- rial described in subsection (a); or scribed in this subsection may be carried out jectives that are within the jurisdiction of ‘‘(2) a contractual agreement between the through Public Health Preparedness Centers, the Secretary. Such plan shall include the Secretary and a vendor or vendors under Noble training facilities, the Emerging Infec- development of specific criteria that will en- which such vendor or vendors agree to pro- tions Program, and the Epidemic Intel- able measurements to be made of the vide to the Secretary such medical supplies ligence Service.’’. progress made at the national, State, and as shall be described in the contract at such local levels toward achieving the national Subtitle B—Coordination of Efforts and time as shall be specified in the contract. goal of bioterrorism preparedness, including Responses ‘‘(d) PROCEDURES.—The Secretary, in man- actions to strengthen the preparedness of aging the stockpile under this section, SEC. 211. ASSISTANT SECRETARY FOR EMER- rural communities for a biological threat or shall— GENCY PREPAREDNESS; NATIONAL attack. ‘‘(1) ensure that adequate procedures are DISASTER MEDICAL SYSTEM. ‘‘(b) BIENNIAL REPORTS.— followed with respect to the stockpile main- Title XXVIII of the Public Health Service ‘‘(1) IN GENERAL.—Not later than 1 year tained under subsection (a) for inventory Act, as added by section 101, and amended by after the date of enactment of this title, and management, accounting, and for the phys- section 201, is further amended by adding at biennially thereafter, the Secretary shall ical security of such stockpile; and the end the following: prepare and submit to Congress a report con- ‘‘(2) in consultation with State and local cerning the progress made and the steps ‘‘SEC. 2813. ASSISTANT SECRETARY FOR EMER- officials, take into consideration the timing GENCY PREPAREDNESS. taken by the Secretary to further the pur- and location of special events, including des- ‘‘(a) APPOINTMENT OF ASSISTANT SEC- poses of this title (and the amendments ignated national security events. RETARY FOR EMERGENCY PREPAREDNESS.— made by the Bioterrorism Preparedness Act ‘‘(e) AUTHORIZATION OF APPROPRIATIONS.— The President, with the advice and consent of 2001). Such report shall include an assess- There is authorized to be appropriated to of the Senate, shall appoint an individual to ment of the activities conducted under sec- carry out this section, $640,000,000 for fiscal serve as the Assistant Secretary for Emer- tion 319F(c). year 2002, and such sums as may be necessary gency Preparedness who shall head the Office ‘‘(2) ADDITIONAL AUTHORITY.—In the bien- for each of fiscal years 2003 through 2006.’’. nial report submitted under paragraph (1), for Emergency Preparedness. Such Assistant SEC. 202. IMPROVING THE ABILITY OF THE CEN- Secretary shall report to the Secretary. the Secretary may make recommendations TERS FOR DISEASE CONTROL AND concerning— PREVENTION TO RESPOND EFFEC- ‘‘(b) DUTIES.—Subject to the authority of ‘‘(A) additional legislative authority that TIVELY TO BIOTERRORISM. the Secretary, the Assistant Secretary for the Secretary determines is necessary to (a) REVITALIZING THE CDC.—Section 319D of Emergency Preparedness shall— meet the objectives of this title (and the the Public Health Service Act (42 U.S.C. ‘‘(1) serve as the principal adviser to the amendments made by the Bioterrorism Pre- 247d–4) is amended— Secretary on matters relating to emergency paredness Act of 2001); and (1) in subsection (a), by inserting ‘‘, and ex- preparedness, including preparing for and re- ‘‘(B) additional legislative authority that panded, enhanced, and improved capabilities sponding to biological threats or attacks and the Secretary determines is necessary under of the Centers related to biological threats for developing policy; and section 319 to protect the public health in or attacks,’’ after ‘‘modern facilities’’; ‘‘(2) coordinate all functions within the De- the event that a condition described in sec- (2) in subsection (b)— partment of Health and Human Services re- tion 319(a) occurs. (A) by inserting ‘‘, including preparing for lating to emergency preparedness, including ‘‘(c) OTHER REPORTS.—Not later than 1 or responding to biological threats or at- preparing for and responding to biological year after the date of enactment of this title, tacks,’’ after ‘‘public health activities’’; and threats or attacks.

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00226 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S13999 ‘‘SEC. 2814. NATIONAL DISASTER MEDICAL SYS- temporary disaster-response appointee or retary of Defense, the Director of the Fed- TEM. participating in an uncompensated training eral Emergency Management Agency, the ‘‘(a) NATIONAL DISASTER MEDICAL SYS- exercise related to such service, be deemed a Attorney General, the Secretary of Veterans TEM.— person performing ‘service in the uniformed Affairs, the Secretary of Labor, and the Sec- ‘‘(1) IN GENERAL.—There shall be operated a services’ for purposes of chapter 43 of title 38, retary of Agriculture, and with other similar system to be known as the National Disaster United States Code, pertaining to employ- Federal officials as determined appropriate, Medical System (in this section referred to ment and reemployment rights of members shall establish a joint interdepartmental as the ‘National System’) which shall be co- in the uniformed services. All rights and ob- working group on the prevention, prepared- ordinated by the Secretary, in collaboration ligations of such persons and procedures for ness, and response to a biological threat or with the Secretary of Defense, the Secretary assistance, enforcement, and investigation attack on the civilian population. Such joint of Veterans Affairs, and the Director of the shall be as provided for in chapter 43 of title working group shall— Federal Emergency Management Agency. 38, United States Code. ‘‘(1) prioritize countermeasures required to ‘‘(2) FUNCTIONS.—The National System ‘‘(2) NOTICE OF ABSENCE FROM POSITION OF treat, prevent, or identify exposure to a bio- shall provide appropriate health services, EMPLOYMENT.—Preclusion of giving notice of logical agent or toxin pursuant to section health-related social services and, if nec- service by disaster response necessity shall 351A; essary, auxiliary services (including mor- be deemed preclusion by ‘military necessity’ ‘‘(2) coordinate and facilitate the awarding tuary and veterinary services) to respond to for purposes of section 4312(b) of title 38, of grants, contracts, or cooperative agree- the needs of victims of a public health emer- United States Code, pertaining to giving no- ments for the development, manufacture, gency if the Secretary activates the System tice of absence from a position of employ- distribution, and purchase of priority coun- with respect to the emergency. The National ment. A determination of disaster response termeasures; System shall carry out such ongoing activi- necessity shall be made pursuant to regula- ‘‘(3) coordinate research on pathogens like- ties as may be necessary to prepare for the tions prescribed by the Secretary, in con- ly to be used in a biological threat or attack provision of such services. sultation with the Secretary of Defense, and on the civilian population; ‘‘(b) TEMPORARY DISASTER-RESPONSE PER- shall not be subject to judicial review. ‘‘(4) develop shared standards for equip- SONNEL.— ‘‘(f) LIMITATION.—A temporary disaster-re- ment to detect and to protect against bio- ‘‘(1) IN GENERAL.—For the purpose of as- sponse appointee shall not be deemed an em- sisting the Office of Emergency Preparedness logical agents and toxins; ployee of the Public Health Service or the ‘‘(5) coordinate the development, mainte- and the National System in carrying out du- Office of Emergency Preparedness for pur- ties under this section, the Secretary may in nance, and procedures for the release of ma- poses other than those specifically set forth terials from the Strategic National Pharma- accordance with section 316.401 of title 5, in this section.’’. Code of Federal Regulations (including revi- ceutical Stockpile; SEC. 212. EXPANDED AUTHORITY OF THE SEC- ‘‘(6) assess the priorities for and enhance sions to such section), and notwithstanding RETARY OF HEALTH AND HUMAN the eligibility requirements set forth in the preparedness of public health institu- SERVICES TO RESPOND TO PUBLIC tions, providers of medical care, and other paragraphs (1) through (8) of section HEALTH EMERGENCIES. emergency service personnel (including fire- 316.402(b) of such title (including revisions), (a) PROVISION OF DECLARATION TO CON- fighters) to detect, diagnose, and respond (in- make temporary appointments of individuals GRESS.—Section 319(a) of the Public Health cluding mental health response) to a biologi- to intermittent positions to serve as per- Service Act (42 U.S.C. 247d(a)) is amended by cal threat or attack; sonnel of such Office or System. adding at the end the following: ‘‘Not later ‘‘(7) in the recognition that medical and ‘‘(2) TRAVEL AND SUBSISTENCE.—An indi- than 48 hours after a declaration of a public public health professionals are likely to pro- vidual appointed under paragraph (1) shall, health emergency under this section, the vide much of the first response to such an at- in accordance with subchapter I of chapter 57 Secretary shall provide a written declaration tack, develop, coordinate, enhance, and as- of title 5, United States Code, be eligible for to Congress indicating that an emergency sure the quality of joint planning and train- travel, subsistence, and other necessary ex- under this section has been declared.’’. ing programs that address the public health penses incurred in carrying out the duties (b) WAIVER OF REPORTING DEADLINES.—Sec- for which the individual was appointed, in- tion 319 of the Public Health Service Act (42 and medical consequences of a biological cluding per diem in lieu of subsistence. U.S.C. 247d) is amended by adding at the end threat or attack on the civilian population between— ‘‘(3) LIABILITY.—For purposes of section the following: 224(a) and the remedies described in such sec- ‘‘(d) WAIVER OF DATA SUBMITTAL AND RE- ‘‘(A) local firefighters, ambulance per- tion, an individual appointed under para- PORTING DEADLINES.—In any case in which sonnel, police and public security officers, or graph (1) shall, while acting within the scope the Secretary determines that, wholly or other emergency response personnel; and of such appointment, be considered to be an partially as a result of a public health emer- ‘‘(B) hospitals, primary care facilities, and employee of the Public Health Service per- gency that has been declared pursuant to public health agencies; forming medical, surgical, dental, or related subsection (a), individuals or public or pri- ‘‘(8) coordinate the development of strate- functions. Participation in training pro- vate entities are unable to comply with gies for Federal, State, and local agencies to grams carried out by the Office of Emer- deadlines for the submission to the Sec- communicate information to the public re- gency Preparedness or Federal personnel of retary of data or reports required under any garding biological threats or attacks; the National System shall be considered law administered by the Secretary, the Sec- ‘‘(9) develop methods to decontaminate fa- within the scope of such an appointment (re- retary may, notwithstanding any other pro- cilities contaminated as a result of a biologi- gardless of whether the individual receives vision of law, grant such extensions of such cal attack, including appropriate protections compensation for such participation). deadlines as the circumstances reasonably for the safety of those conducting such ac- ‘‘(c) TEMPORARY DISASTER-RESPONSE AP- require, and may waive any sanctions other- tivities; and POINTEE.—For purposes of this section, the wise applicable to such failure to comply.’’. ‘‘(10) ensure that the activities under this term ‘temporary disaster-response ap- (c) EMERGENCY DECLARATION PERIOD.—Sec- subsection address the needs of children and pointee’ means an individual appointed by tion 319 of the Public Health Service Act (42 other vulnerable populations. the Secretary under subsection (b). U.S.C. 247d), as amended by subsection (b), is The working group shall carry out para- ‘‘(d) COMPENSATION FOR WORK INJURIES.—A further amended by adding at the end the graphs (1) and (2) in consultation with the temporary disaster-response appointee, as following: pharmaceutical, biotechnology, and medical designated by the Secretary, shall be deemed ‘‘(e) EMERGENCY DECLARATION PERIOD.—A device industries, and other appropriate ex- an employee, and an injury sustained by determination by the Secretary under sub- perts. such an individual while actually serving or section (a) that a public health emergency while participating in a uncompensated exists shall remain in effect for not longer ‘‘(b) ADVICE TO THE SECRETARY.—The Sec- training exercise related to such service than the 180-day period beginning on the retary shall establish advisory committees shall be deemed ‘in the performance of duty’, date of the determination. Such period may to provide expert recommendations to the for purposes of chapter 81 of title 5, United be extended by the Secretary if— Secretary to assist the Secretary, including States Code, pertaining to compensation for ‘‘(1) the Secretary determines that such an the following: work injuries. In the event of an injury to extension is appropriate; and ‘‘(1) NATIONAL TASK FORCE ON CHILDREN AND such a temporary disaster-response ap- ‘‘(2) the Secretary provides a written noti- TERRORISM.— pointee, the Secretary of Labor shall be re- fication to Congress within 48 hours of such ‘‘(A) IN GENERAL.—The National Task sponsible for making determinations as to extension.’’. Force on Children and Terrorism, which whether the claimants are entitled to com- SEC. 213. PUBLIC HEALTH PREPAREDNESS AND shall be composed of such Federal officials as pensation or other benefits in accordance RESPONSE TO A BIOTERRORIST AT- may be appropriate to address the special with chapter 81 of title 5, United States TACK. needs of children, and child health experts on Code. Section 319F of the Public Health Service infectious disease, environmental health, ‘‘(e) EMPLOYMENT AND REEMPLOYMENT Act (42 U.S.C. 247d–6) is amended by striking toxicology, and other relevant professional RIGHTS.— subsections (a) and (b), and inserting the fol- disciplines. ‘‘(1) IN GENERAL.—A temporary disaster-re- lowing: ‘‘(B) DUTIES.—The task force described in sponse appointee, as designated by the Sec- ‘‘(a) WORKING GROUP ON BIOTERRORISM.— subparagraph (A) shall provide recommenda- retary, shall, when performing service as a The Secretary, in coordination with the Sec- tions to the Secretary regarding—

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‘‘(i) the preparedness of the health care ‘‘(III) the availability and effectiveness of ‘‘(1) IN GENERAL.—The Secretary shall es- system to respond to bioterrorism as it re- pharmacotherapies and immunizations to tablish exemptions, including exemptions lates to children; treat and prevent any illness resulting from from the security provisions, from the appli- ‘‘(ii) needed changes to the health care and infection by the agent or toxin; and cability of provisions of— emergency medical service systems and ‘‘(IV) any other criteria, including the ‘‘(A) the regulations issued under sub- emergency medical services protocols to needs of children and other vulnerable popu- sections (b) and (c) when the Secretary de- meet the special needs of children with re- lations, that the Secretary considers appro- termines that the exemptions, including ex- spect to a biological threat or attack; and priate; and emptions from the security requirements for ‘‘(iii) changes, if necessary, to the Stra- ‘‘(ii) consult with appropriate Federal de- the use of attenuated or inactive biological tegic National Pharmaceutical Stockpile, to partments and agencies, and scientific ex- agents or toxins in biomedical research or meet the special needs of children. perts representing appropriate professional for legitimate medical purposes, are con- ‘‘(2) EMERGENCY PUBLIC INFORMATION AND groups, including those with pediatric exper- sistent with protecting public health and COMMUNICATIONS TASK FORCE.— tise. safety; and ‘‘(A) IN GENERAL.—The Emergency Public ‘‘(2) BIENNIAL REVIEW.—The Secretary shall ‘‘(B) the regulations issued under sub- Information and Communications (EPIC) review and republish the list under para- section (c). Task Force, which shall be composed of indi- graph (1) biennially, or more often as needed, ‘‘(2) CLINICAL LABORATORIES.—The Sec- viduals with expertise in public health, com- and shall, through rulemaking, revise the retary shall exempt clinical laboratories and munications, behavioral psychology, and list as necessary to incorporate additions or other persons that possess, use, or transfer other areas determined appropriate by the deletions to ensure public health, safety, and biological agents and toxins listed pursuant Secretary. security. to subsection (a)(1) from the applicability of ‘‘(B) DUTIES.—The task force described in ‘‘(3) EXEMPTIONS.—The Secretary may ex- provisions of regulations issued under sub- subparagraph (A) shall make recommenda- empt from the list under paragraph (1)— sections (b) and (c) only when— tions and report to the Secretary on appro- ‘‘(A) attenuated or inactive biological ‘‘(A) such agents or toxins are presented priate ways to communicate information re- agents or toxins used in biomedical research for diagnosis, verification, or proficiency garding biological threats or attacks to the or for legitimate medical purposes; and testing; public, including public service announce- ‘‘(B) products that are cleared or approved ‘‘(B) the identification of such agents and ments or other appropriate means to com- under the Federal Food, Drug, and Cosmetic toxins is, when required under Federal or municate in a manner that maximizes infor- Act or under the Virus-Serum-Toxin Act, as State law, reported to the Secretary or other mation and minimizes panic, and includes amended in 1985 by the Food Safety and Se- public health authorities; and information relevant to children and other curity Act.’’; ‘‘(C) such agents or toxins are transferred vulnerable populations. ‘‘(b) REGULATION OF TRANSFERS OF LISTED or destroyed in a manner set forth by the ‘‘(3) SUNSET.—Each Task Force established BIOLOGICAL AGENTS AND TOXINS.—The Sec- Secretary in regulation. under paragraphs (1) and (2) shall terminate retary shall by regulation provide for— ‘‘(g) SECURITY REQUIREMENTS FOR REG- on the date that is 1 year after the date of ‘‘(1) the establishment and enforcement of ISTERED PERSONS.— enactment of the Bioterrorism Preparedness safety procedures for the transfer of biologi- ‘‘(1) SECURITY.—In carrying out paragraphs Act of 2001.’’. cal agents and toxins listed pursuant to sub- (2) and (3) of subsection (b), the Secretary shall establish appropriate security require- SEC. 214. THE OFFICIAL FEDERAL INTERNET section (a)(1), including measures to ensure— ments for persons possessing, using, or trans- SITE ON BIOTERRORISM. ‘‘(A) proper training and appropriate skills ferring biological agents and toxins listed It is the recommendation of Congress that to handle such agents and toxins; and pursuant to subsection (a)(1), considering ex- there should be established an official Fed- ‘‘(B) proper laboratory facilities to contain isting standards developed by the Attorney eral Internet site on bioterrorism, either di- and dispose of such agents and toxins; General for the security of government fa- rectly or through provision of a grant to an ‘‘(2) safeguards to prevent access to such cilities, and shall ensure compliance with entity that has expertise in bioterrorism and agents and toxins for use in domestic or such requirements as a condition of registra- the development of websites, that should in- international terrorism or for any other tion under regulations issued under sub- clude information relevant to diverse popu- criminal purpose; sections (b) and (c). lations (including messages directed at the ‘‘(3) the establishment of procedures to ‘‘(2) LIMITING ACCESS TO LISTED AGENTS AND general public and such relevant groups as protect the public safety in the event of a TOXINS.—Regulations issued under sub- medical personnel, public safety workers, transfer or potential transfer of a biological sections (b) and (c) shall include provisions— and agricultural workers) and links to appro- agent or toxin in violation of the safety pro- ‘‘(A) to restrict access to biological agents priate State and local government sites. cedures established under paragraph (1) or and toxins listed pursuant to subsection SEC. 215. TECHNICAL AMENDMENTS. the safeguards established under paragraph (a)(1) only to those individuals who need to Section 319C of the Public Health Service (2); and handle or use such agents or toxins; and Act (42 U.S.C. 247d–3) is amended— ‘‘(4) appropriate availability of biological ‘‘(B) to provide that registered persons (1) in subsection (a), by striking ‘‘competi- agents and toxins for research, education, promptly submit the names and other identi- tive’’; and and other legitimate purposes. fying information for such individuals to the (2) in subsection (f), by inserting ‘‘(c) POSSESSION AND USE OF LISTED BIO- Attorney General, with which information ‘‘$420,000,000 for fiscal year 2002,’’ after LOGICAL AGENTS AND TOXINS.—The Secretary ‘‘2001,’’. shall by regulation provide for the establish- the Attorney General shall promptly use SEC. 216. REGULATION OF BIOLOGICAL AGENTS ment and enforcement of standards and pro- criminal, immigration, and national security AND TOXINS. cedures governing the possession and use of databases available to the Federal Govern- (a) BIOLOGICAL AGENTS PROVISIONS OF THE biological agents and toxins listed pursuant ment to identify whether such individuals— ANTITERRORISM AND EFFECTIVE DEATH PEN- to subsection (a)(1) in order to protect the ‘‘(i) are restricted persons, as defined in ALTY ACT OF 1996; CODIFICATION IN THE PUBLIC public health and safety, including the meas- section 175b of title 18, United States Code; HEALTH SERVICE ACT, WITH AMENDMENTS.— ures, safeguards, procedures, and availability or (1) PUBLIC HEALTH SERVICE ACT.—Subpart 1 of such agents and toxins described in para- ‘‘(ii) are named in a warrant issued to a of part F of title III of the Public Health graphs (1) through (4) of subsection (b), re- Federal or State law enforcement agency for Service Act (42 U.S.C. 262 et seq.) is amended spectively. participation in any domestic or inter- by inserting after section 351 the following: ‘‘(d) REGISTRATION AND TRACEABILITY national act of terrorism. ‘‘SEC. 351A. ENHANCED CONTROL OF BIOLOGI- MECHANISMS.—Regulations under subsections ‘‘(3) CONSULTATION AND IMPLEMENTATION.— CAL AGENTS AND TOXINS. (b) and (c) shall require registration for the Regulations under subsections (b) and (c) ‘‘(a) REGULATORY CONTROL OF BIOLOGICAL possession, use, and transfer of biological shall be developed in consultation with re- AGENTS AND TOXINS.— agents and toxins listed pursuant to sub- search-performing organizations, including ‘‘(1) LIST OF BIOLOGICAL AGENTS AND TOX- section (a)(1), and such registration shall in- universities, and implemented with time- INS.— clude (if available to the registered person) frames that take into account the need to ‘‘(A) IN GENERAL.—The Secretary shall by information regarding the characterization continue research and education using bio- regulation establish and maintain a list of of such biological agents and toxins to facili- logical agents and toxins listed pursuant to each biological agent and each toxin that tate their identification and traceability. subsection (a)(1). has the potential to pose a severe threat to The Secretary shall maintain a national ‘‘(h) DISCLOSURE OF INFORMATION.— public health and safety. database of the location of such biological ‘‘(1) IN GENERAL.—Any information in the ‘‘(B) CRITERIA.—In determining whether to agents and toxins with information regard- possession of any Federal agency that identi- include an agent or toxin on the list under ing their characterizations. fies a person, or the geographic location of a subparagraph (A), the Secretary shall— ‘‘(e) INSPECTIONS.—The Secretary shall person, who is registered pursuant to regula- ‘‘(i) consider— have the authority to inspect persons subject tions under this section (including regula- ‘‘(I) the effect on human health of exposure to the regulations under subsections (b) and tions promulgated before the effective date to the agent or toxin; (c) to ensure their compliance with such reg- of this subsection), or any site-specific infor- ‘‘(II) the degree of contagiousness of the ulations, including prohibitions on restricted mation relating to the type, quantity, or agent or toxin and the methods by which the persons under subsection (g). characterization of a biological agent or agent or toxin is transferred to humans; ‘‘(f) EXEMPTIONS.— toxin listed pursuant to subsection (a)(1) or

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00228 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S14001 the site-specific security mechanisms in (A) by redesignating subsections (b) and (c) TITLE III—IMPROVING STATE AND LOCAL place to protect such agents and toxins, in- as subsections (c) and (d), respectively; and PREPAREDNESS cluding the national database required in (B) by inserting after subsection (a) the subsection (d), shall not be disclosed under following: Subtitle A—Emergency Measures to Improve section 552(a) of title 5, United States Code. State and Local Preparedness ‘‘(b) SELECT AGENTS.— ‘‘(2) DISCLOSURES FOR PUBLIC HEALTH AND ‘‘(1) UNREGISTERED FOR POSSESSION.—Who- SEC. 301. STATE BIOTERRORISM PREPAREDNESS SAFETY; CONGRESS.—Nothing in this section ever knowingly possesses a biological agent AND RESPONSE BLOCK GRANT. may be construed as preventing the head of or toxin where such agent or toxin is a select any Federal agency— (a) IN GENERAL.—Section 319F of the Public agent for which such person has not obtained Health Service Act (42 U.S.C. 247d–6) is ‘‘(A) from making disclosures of informa- a registration required by regulation issued tion described in paragraph (1) for purposes amended by striking subsection (c) and in- under section 351A(c) of the Public Health serting the following: of protecting the public health and safety; or Service Act shall be fined under this title, or ‘‘(B) from making disclosures of such infor- imprisoned for not more than 5 years, or ‘‘(c) STATE BIOTERRORISM PREPAREDNESS mation to any committee or subcommittee both. AND RESPONSE BLOCK GRANTS.— of the Congress with appropriate jurisdic- ‘‘(2) TRANSFER TO UNREGISTERED PERSON.— ‘‘(1) IN GENERAL.—The Secretary shall es- tion, upon request. Whoever transfers a select agent to a person tablish the State Bioterrorism Preparedness ‘‘(i) CIVIL MONEY PENALTY.—Any person who the transferor has reason to believe has and Response Block Grant Program (referred who violates a regulation under subsection not obtained a registration required by regu- to in this subsection as the ‘Program’) under (b) or (c) shall be subject to the United lations issued under section 351A(b) or (c) of which the Secretary shall award grants to or States for a civil money penalty in an enter into cooperative agreements with amount not exceeding $250,000 in the case of the Public Health Service Act shall be fined States, the District of Columbia, and terri- an individual and $500,000 in the case of any under this title, or imprisoned for not more tories (referred to in this section as ‘eligible other person. The provisions of section 1128A than 5 years, or both.’’. entities’) to enable such entities to prepare of the Social Security Act (other than sub- (2) DEFINITIONS.—Section 175 of title 18, for and respond to biological threats or at- sections (a), (b), (h), and (i), the first sen- United States Code, as amended by para- tence of subsection (c), and paragraphs (1) graph (1), is further amended by striking tacks. The Secretary shall ensure that ac- and (2) of subsection (f) of such section) shall subsection (d) and inserting the following: tivities conducted under this section are co- ordinated with the activities conducted apply to civil money penalties under this ‘‘(d) DEFINITIONS.—As used in this section: under this section and section 319C. subsection in the same manner as such pro- ‘‘(1) The terms ‘biological agent’ and ‘‘(2) ELIGIBILITY.—To be eligible to receive visions apply to a penalty or proceeding ‘toxin’ have the meanings given such terms amounts under paragraph (1), a State, the under section 1128A(a) of such Act. The Sec- in section 178, except that, for purposes of District of Columbia, or a territory shall pre- retary may delegate authority under this subsections (b) and (c), such terms do not en- pare and submit to the Secretary an applica- section in the same manner as provided in compass any biological agent or toxin that is tion at such time, in such manner, and con- section 1128A(j)(2) of such Act and such au- in its naturally occurring environment, if taining such information as the Secretary thority shall include all powers described in the biological agent or toxin has not been may require, including an assurance that the section 6 of the Inspector General Act of 1978 cultivated, cultured, collected, or otherwise entity will— (5 U.S.C. App. 2) extracted from its natural source. ‘‘(A) not later than 180 days after the date ‘‘(j) DEFINITIONS.—For purposes of this sec- ‘‘(2) The term ‘for use as a weapon’ in- on which a grant or contract is received tion, the terms ‘biological agent’ and ‘toxin’ cludes the development, production, trans- have the same meaning as in section 178 of under this subsection, prepare and submit to fer, acquisition, retention, or possession of title 18, United States Code.’’. the Secretary a Bioterrorism Preparedness any biological agent, toxin, or delivery sys- (2) REGULATIONS.— and Response Plan in accordance with sub- tem, other than for prophylactic, protective, (A) DATE CERTAIN FOR PROMULGATION; EF- section (c); or other peaceful purposes. FECTIVE DATE REGARDING CRIMINAL AND CIVIL ‘‘(B) not later than 180 days after the date ‘‘(3) The term ‘select agent’ means a bio- PENALTIES.—Not later than 180 days after the on which a grant or contract is received logical agent or toxin, as defined in para- date of the enactment of this title, the Sec- under this subsection, complete an assess- graph (1), that is on the list that is in effect retary of Health and Human Services shall ment under section 319B(a), or an assessment pursuant to section 511(d)(1) of the promulgate an interim final rule for car- that is substantially equivalent as deter- Antiterrorism and Effective Death Penalty rying out section 351A(c) of the Public mined by the Secretary unless such assess- Act of 1996 (Public Law 104–132), or as subse- Health Service Act, which amends the ment has already been performed; and quently revised under section 351A(a) of the Antiterrorism and Effective Death Penalty ‘‘(C) establish a means by which to obtain Public Health Service Act.’’. Act of 1996. Such interim final rule will take public comment and input on the plan and (3) CONFORMING AMENDMENT.— effect 60 days after the date on which such plan implementation that shall include an (A) Section 175(a) of title 18, United States rule is promulgated, including for purposes advisory committee or other similar mecha- Code, is amended in the second sentence by of— nism for obtaining input from the public at striking ‘‘under this section’’ and inserting (i) section 175(b) of title 18, United States large as well as other stakeholders; ‘‘under this subsection’’. Code (relating to criminal penalties), as ‘‘(D) use amounts received under paragraph (B) Section 175(c) of title 18, United States added by subsection (b)(1)(B) of this section; (1) in accordance with the plan submitted Code, (as redesignated by paragraph (1)), is and under paragraph (3), including making ex- amended by striking the second sentence. (ii) section 351A(i) of the Public Health penditures to carry out the strategy con- Service Act (relating to civil penalties). (c) REPORT TO CONGRESS.—Not later than 1 tained in the plan; (B) SUBMISSION OF REGISTRATION APPLICA- year after the date of the enactment of this ‘‘(E) use amounts received under paragraph TIONS.—A person required to register for pos- Act, the Secretary of Health and Human (1) to supplement and not supplant funding session under the interim final rule promul- Services, after consultation with other ap- at levels in existence prior to September 11, gated under subparagraph (A) shall submit propriate Federal agencies, shall submit to 2001 for public health capacities or bioter- an application for such registration not later the Congress a report that— rorism preparedness; and than 60 days after the date on which such (1) describes the extent to which there has ‘‘(F) with respect to the plan under para- rule is promulgated. been compliance by governmental and pri- graph (3), establish reasonable criteria to (3) CONFORMING AMENDMENT.—Subsections vate entities with applicable regulations evaluate the effective performance of enti- (d), (e), (f), and (g) of section 511 of the under section 351A of the Public Health Serv- ties that receive funds under the grant or Antiterrorism and Effective Death Penalty ice Act, including the extent of compliance agreement and shall include relevant bench- Act of 1996 (42 U.S.C. 262 note) are repealed. before the date of the enactment of this Act, marks in the plan. (4) EFFECTIVE DATE.—Paragraph (1) shall and including the extent of compliance with ‘‘(3) BIOTERRORISM PREPAREDNESS AND RE- take effect as if incorporated in the regulations promulgated after such date of SPONSE PLAN.—Not later than 180 days after Antiterrorism and Effective Death Penalty enactment; receiving amounts under this subsection, and Act of 1996, and any regulations, including (2) describes the actions to date and future 1 year after such date, a State, the District the list under subsection (d)(1) of section 511 plans of the Secretary for updating the list of Columbia, or a territory shall prepare and of that Act, issued under section 511 of that of biological agents and toxins under section submit to the Secretary a Bioterrorism Pre- Act shall remain in effect as if issued under 351A(a)(1) of the Public Health Service Act; paredness and Response Plan for responding section 351A of the Public Health Service (3) describes the actions to date and future to biological threats or attacks. Recognizing Act. plans of the Secretary for determining com- the assessment of public health capacity (b) SELECT AGENTS.— pliance with regulations under such section conducted under section 319B, such plan (1) IN GENERAL.—Section 175 of title 18, 351A of the Public Health Service Act and for shall include— United States Code, as amended by the Unit- taking appropriate enforcement actions; and ‘‘(A) a description of the program that the ing and Strengthening America by Providing (4) provides any recommendations of the eligible entity will adopt to achieve the core Appropriate Tools Required to Intercept and Secretary for administrative or legislative capacities developed under section 319A, in- Obstruct Terrorism (USA PATRIOT ACT) initiatives regarding such section 351A of the cluding measures that meet the needs of Act of 2001 (Public Law 107–56), is amended— Public Health Service Act. children and other vulnerable populations;

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‘‘(B) a description (including amounts ex- creditation organization or similar organiza- ‘‘(D) AVAILABILITY OF FUNDS.—Any amount pended by the eligible entity for such pur- tions; and paid to an eligible entity for a fiscal year pose) of the programs, projects, and activi- ‘‘(vi) enhance the safety of workplaces in under this subsection and remaining unobli- ties that the eligible entity will implement the event of a biological threat or attack, ex- gated at the end of such year shall remain using amounts received in order to detect cept that nothing in this clause shall be con- available for the next fiscal year to such en- and respond to biological threats or attacks, strued to create a new, or deviate from an tity for the purposes for which it was made. including the manner in which the eligible existing, authority to regulate, modify, or ‘‘(6) INDIAN TRIBES.— entity will manage State surveillance and otherwise effect safety and health rules and ‘‘(A) IN GENERAL.—If the Secretary— response efforts and coordinate such efforts standards. ‘‘(i) receives a request from the governing with national efforts; ‘‘(C) PROHIBITED USES.—An eligible entity body of an Indian tribe or tribal organization ‘‘(C) a description of the training initia- may not use amounts received under this within any State that funds under this sub- tives that the eligible entity has carried out subsection to— section be provided directly by the Secretary to improve its ability to detect and respond ‘‘(i) provide inpatient services; to such tribe or organization; and to a biological threat or attack, including ‘‘(ii) make cash payments to intended re- ‘‘(ii) determines that the members of such training and planning to protect the health cipients of health services; tribe or tribal organization would be better and safety of those conducting such detec- ‘‘(iii) purchase or improve land or purchase served by means of grants or agreements tion and response activities; any building or other facility; made directly by the Secretary under this ‘‘(D) a description of the cleanup and con- ‘‘(iv) construct, repair, or alter any build- subsection; tamination prevention efforts that may be ing or other facility; or the Secretary shall reserve from amounts implemented in the event of a biological ‘‘(v) satisfy any requirement for the ex- which would otherwise be provided to such threat or attack; penditure of non-Federal funds as a condi- State under this subsection for the fiscal ‘‘(E) a description of efforts to ensure that tion for the receipt of Federal funds. year the amount determined under subpara- hospitals and health care providers have ade- ‘‘(5) AMOUNT OF GRANT.— graph (B). quate capacity and plans in place to provide ‘‘(A) IN GENERAL.—Except as provided in ‘‘(B) AMOUNT.—The Secretary shall reserve health care items and services (including paragraph (2), the amount awarded to a for the purpose of subparagraph (A) from mental health services and services to meet State, the District of Columbia, or a terri- amounts that would otherwise be paid to the needs of children and other vulnerable tory under this subsection for a fiscal year such State under paragraph (1) an amount populations that may include the provision shall be an amount that bears the same ratio equal to the amount which bears the same of telehealth services) in the event of a bio- to the amount appropriated under paragraph ratio to the amount awarded to the State for logical threat or attack; and (9) for such fiscal year (and remaining after the fiscal year involved as the population of ‘‘(F) other information the Secretary may amounts are made available under subpara- the Indian tribe or the individuals rep- by regulation require. graphs (C) and (D)) as the total population of resented by the tribal organization bears to ‘‘Nothing in subparagraph (E) shall be con- the State, District, or territory bears to the the total population of the State. strued to require or recommend that States total population of the United States. ‘‘(C) GRANT.—The amount reserved by the establish or maintain stockpiles of vaccines, ‘‘(B) EXCEPTIONS.— Secretary on the basis of a determination therapies, or other medical supplies. ‘‘(i) MINIMUM AMOUNT WITH RESPECT TO under this paragraph shall be granted to the ‘‘(4) USE OF FUNDS.— STATES.—Notwithstanding subparagraph (A) Indian tribe or tribal organization serving ‘‘(A) IN GENERAL.—In coordination with the and subject to the extent of amounts made the individuals for whom such a determina- activities conducted under this section, an available under paragraph (9), a State may tion has been made. eligible entity shall use amounts received not receive an award under this subsection ‘‘(D) PLAN.—In order for an Indian tribe or under this section to— for a fiscal year in an amount that is less tribal organization to be eligible for a grant ‘‘(i) conduct the assessment under section than— for a fiscal year under this paragraph, it 319B to achieve the capacities described in ‘‘(I) $5,000,000 for any fiscal year in which shall submit to the Secretary a plan for such section 319A, if the assessment has not pre- the total amount appropriated under this fiscal year which meets such criteria as the viously been conducted; subsection equals or exceeds $667,000,000; or Secretary may prescribe. ‘‘(ii) achieve the public health capacities ‘‘(II) 0.75 percent of the total amount ap- ‘‘(E) DEFINITIONS.—In this paragraph, the developed under section 319A; and propriated under this subsection for any fis- terms ‘Indian tribe’ and ‘tribal organization’ ‘‘(iii) carry out the plan under paragraph cal year in which such total amount is less have the same meaning given such terms in (3). than $667,000,000. section 4(b) and section 4(c) of the Indian ‘‘(B) ADDITIONAL USES.—In addition to the ‘‘(ii) EXTRAORDINARY NEEDS.— Self-Determination and Education Assist- activities described in subparagraph (A), an ‘‘(I) IN GENERAL.—Notwithstanding sub- ance Act. eligible entity may use amounts received paragraph (A) and subject to the extent of ‘‘(7) WITHHOLDING.— under this subsection to— amounts made available under paragraph (9), ‘‘(A) REQUIREMENTS.— ‘‘(i) improve surveillance, detection, and the Secretary may provide additional funds ‘‘(i) IN GENERAL.—The Secretary shall, response activities to prepare for emergency to a State, District, or territory under this after adequate notice and an opportunity for response activities including biological subsection if the Secretary determines that a hearing conducted within the affected eli- threats or attacks, including training per- such State, District, or territory has ex- gible entity, withhold or recoup funds from sonnel in these and other necessary func- traordinary needs with respect to bioter- any such entity that does not use amounts tions; rorism preparedness. received under this subsection in accordance ‘‘(ii) carry out activities to improve com- ‘‘(II) FINDING WITH RESPECT TO THE DISTRICT with the requirements of this subsection. munications and coordination efforts within OF COLUMBIA.—As a result of the concentra- The Secretary shall withhold or recoup such the eligible entity and between the eligible tion of entities of national significance lo- funds until the Secretary finds that the rea- entity and the Federal Government, includ- cated within the District of Columbia, Con- son for the withholding or recoupment has ing activities to improve information tech- gress finds that the District of Columbia has been removed and there is reasonable assur- nology and communications equipment extraordinary needs with respect to bioter- ance that it will not recur. available to health care and public health of- rorism preparedness, and the Secretary shall ‘‘(ii) INVESTIGATION.—The Secretary may ficials for use in responding to a biological recognize such finding for purposes of sub- not institute proceedings to withhold or re- threat or attack or other public health emer- clause (I). coup funds under clause (i) unless the Sec- gency and including early warning and sur- ‘‘(C) RULE WITH RESPECT TO UNEXPENDED retary has conducted an investigation con- veillance networks that use advanced infor- FUNDS.—To the extent that all the funds ap- cerning whether the eligible entity has used mation technology to provide early detec- propriated under paragraph (9) for a fiscal grant or agreement amounts in accordance tion of biological threats or attacks; year and available in such fiscal year are not with the requirements of this subsection. In- ‘‘(iii) plan for triage and transport manage- otherwise paid to eligible entities because— vestigations required by this clause shall be ment in the event of a biological threat or ‘‘(i) one or more eligible entities have not conducted within the affected entity by attack; submitted an application or public health qualified investigators. ‘‘(iv) meet the special needs of children and disaster plan in accordance with paragraphs ‘‘(iii) RESPONSE TO COMPLAINTS.—The Sec- other vulnerable populations during and (2) and (3) for the fiscal year; retary shall respond in an expeditious man- after a biological threat or attack, including ‘‘(ii) one or more eligible entities have no- ner to complaints of a substantial or serious the expansion of 2–1–1 call centers or other tified the Secretary that they do not intend nature that an eligible entity has failed to universal hotlines, or an alternative commu- to use the full amount awarded under this use funds in accordance with the require- nication plan to assist victims and their subsection; or ments of this subsection. families in receiving timely information; ‘‘(iii) some eligible entity amounts are off- ‘‘(iv) MINOR FAILURES.—The Secretary may ‘‘(v) improve the ability of hospitals and set or repaid; not withhold or recoup funds under clause (i) other health care facilities to provide effec- such excess shall be provided to each of the from an eligible entity for a minor failure to tive health care (including mental health remaining eligible entities in proportion to comply with the requirements of this sub- care) during and after a biological threat or the amount otherwise provided to such enti- section. attack, including the development of model ties under this paragraph for the fiscal year ‘‘(B) AVAILABILITY OF INFORMATION FOR IN- hospital preparedness plans by a hospital ac- without regard to this subparagraph. SPECTION.—Each eligible entity, and other

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00230 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S14003 entity which has received funds under this meet such technical guidelines as may be ap- special needs of children and other vulner- section, shall make appropriate books, docu- plicable under paragraph (4); and able populations.’’. ments, papers, and records available to the ‘‘(D) provide assurances satisfactory to the SEC. 314. GENERAL ACCOUNTING OFFICE RE- Secretary or the Comptroller General of the Secretary that such entity shall, upon the PORT. United States, or any of their duly author- request of the Secretary or the Chief Execu- Section 319F(h) of the Public Health Serv- ized representatives, for examination, copy- tive Officer of the State, District, or terri- ice Act (42 U.S.C. 247d–6(g)), as so redesig- ing, or mechanical reproduction on or off the tory in which the entity is located, during nated by section 311, is amended— premises of the appropriate entity upon a the emergency period, serve the needs of the (1) by striking ‘‘Not later than 180 days reasonable request therefore. emergency area, including providing ade- after the date of the enactment of this sec- ‘‘(C) LIMITATION ON REQUESTS FOR INFORMA- quate health care capacity, serving as a re- tion, the’’ and inserting ‘‘The’’; TION.— gional resource in the diagnosis, treatment, (2) in paragraph (3), by striking ‘‘and’’ at ‘‘(i) IN GENERAL.—In conducting any inves- or care for persons, including children and the end; tigation in an eligible entity, the Secretary other vulnerable populations, exposed to a (3) in paragraph (4), by striking the period or the Comptroller General of the United biological threat or attack, and accepting and inserting a semicolon; and States may not make a request for any infor- the transfer of patients, where appropriate. (4) by adding at the end the following: mation not readily available to such eligible ‘‘(3) USE OF FUNDS.—An entity that re- ‘‘(5) the activities and cost of the Civil entity, or an entity which has received funds ceives a grant under paragraph (1) shall use Support Teams of the National Guard in re- under this subsection, or make an unreason- funds received under the grant for activities sponding to biological threats or attacks able request for information to be compiled, that include— against the civilian population; collected, or transmitted in any form not ‘‘(A) the training of health care profes- ‘‘(6) the activities of the working group de- readily available. sionals to enhance the ability of such per- scribed in subsection (a) and the efforts made ‘‘(ii) JUDICIAL PROCEEDINGS.—Clause (i) sonnel to recognize the symptoms of expo- by such group to carry out the activities de- does not apply to the collection, compila- sure to a potential biological threat or at- scribed in such subsection; tion, or transmittal of data in the course of tack and to provide treatment to those so ‘‘(7) the activities and cost of the 2–1–1 call a judicial proceeding. exposed; centers and other universal hotlines; and ‘‘(8) DEFINITION.—In this subsection, the ‘‘(B) the training of health care profes- ‘‘(8) the activities and cost of the develop- term ‘State’ means any of the several States. sionals to recognize and treat the mental ment and improvement of public health lab- ‘‘(9) AUTHORIZATION OF APPROPRIATIONS.— health consequences of a biological threat or oratory capacity.’’. There is authorized to be appropriated to attack; SEC. 315. ADDITIONAL RESEARCH. carry out this subsection, $667,000,000 for fis- ‘‘(C) increasing the capacity of such entity Section 22 of the Occupational Safety and cal year 2002, and such sums as may be nec- to provide appropriate health care for large Health Act of 1970 (29 U.S.C. 671) is amended essary for fiscal year 2003, and no funds are numbers of individuals exposed to a biologi- by adding at the end the following: authorized to be appropriated for subsequent cal threat or attack; ‘‘(h) RESEARCH RELATING TO BIOLOGICAL fiscal years.’’. ‘‘(D) the purchase of reserves of vaccines, THREATS OR ATTACKS IN THE WORKPLACE.— (b) REAUTHORIZATION OF OTHER PRO- therapies, and other medical supplies to be The Director shall enhance and expand re- GRAMS.—Section 319F(i) of the Public Health used until materials from the Strategic Na- search as deemed appropriate by the Direc- Service Act (42 U.S.C. 247d–6(i)) is amended tional Pharmaceutical Stockpile arrive; tor on the health and safety of workers who to read as follows: ‘‘(E) training and planning to protect the are at risk for biological threats or attacks ‘‘(i) AUTHORIZATION OF APPROPRIATIONS.— health and safety of personnel involved in re- in the workplace.’’. There are authorized to be appropriated— sponding to a biological threat or attack; or ‘‘(1) to carry out subsection (d), $370,000,000 SEC. 316. SENSE OF THE SENATE. ‘‘(F) other activities determined appro- It is the sense of the Senate that— for fiscal year 2002, and such sums as may be priate by the Secretary. necessary for each subsequent fiscal year (1) many excellent university-based pro- ‘‘(4) PROHIBITED USES.—An eligible entity through 2006; and grams are already functioning and devel- may not use amounts received under this oping important biodefense products and so- ‘‘(2) to carry out subsections (a), (b), and subsection to— (e) through (i), such sums as may be nec- lutions throughout the United States; ‘‘(A) purchase or improve land or purchase (2) accelerating the crucial work done at essary for each of fiscal years 2002 through any building or other facility; or 2006.’’. university centers and laboratories will con- ‘‘(B) construct, repair, or alter any build- tribute significantly to the United States ca- Subtitle B—Improving Local Preparedness ing or facility. and Response Capabilities pacity to defend against any biological ‘‘(6) TECHNICAL ASSISTANCE.—Not later threat or attack; SEC. 311. DESIGNATED BIOTERRORISM RE- than 180 days after the date of enactment of (3) maximizing the effectiveness of, and ex- SPONSE MEDICAL CENTERS. the Bioterrorism Preparedness Act of 2001, tending the mission of, established univer- Section 319F of the Public Health Service the Secretary shall develop and publish tech- Act (42 U.S.C. 247d–6) is amended— sity programs would be one appropriate use nical guidelines relating to equipment, of the additional resources provided for in (1) by redesignating subsections (d) training, treatment, capacity, and personnel, through (h) and (i), as subsections (e) the Bioterrorism Preparedness Act of 2001; relevant to the status as a bioterrorism re- and through (i) and (l), respectively; and sponse medical center and the Secretary (2) by inserting after subsection (c), the (4) Congress recognizes the importance of may provide technical assistance to eligible existing public and private university-based following: entities, including assistance to address the ‘‘(d) DESIGNATED BIOTERRORISM RESPONSE research, training, public awareness, and needs of children and other vulnerable popu- safety related biological defense programs in MEDICAL CENTERS.— lations.’’. ‘‘(1) GRANTS.—The Secretary shall award the awarding of grants and contracts made SEC. 312. DESIGNATED STATE PUBLIC EMER- in accordance with this Act. project grants to eligible entities to enable GENCY ANNOUNCEMENT PLAN. such entities, in a manner consistent with Section 613(b) of the Robert T. Stafford TITLE IV—DEVELOPING NEW COUNTER- applicable provisions of the Bioterrorism Disaster Relief and Emergency Assistance MEASURES AGAINST BIOTERRORISM Preparedness and Response Plan, to improve Act (42 U.S.C. 5196b(b)) is amended— SEC. 401. LIMITED ANTITRUST EXEMPTION. local and bioterrorism response medical cen- (1) in paragraph (5), by striking ‘‘and’’ at Section 2 of the Clayton Act (15 U.S.C. 13) ter preparedness. the end; is amended by adding at the end the fol- ‘‘(2) ELIGIBILITY.—To be eligible for a grant (2) in paragraph (6), by striking the period lowing: under paragraph (1), an entity shall— and inserting ‘‘; and’’; and ‘‘(g) LIMITED ANTITRUST EXEMPTION.— ‘‘(A) be a consortium that consists of at (3) by adding at the end the following: ‘‘(1) COUNTERMEASURES DEVELOPMENT least one entity from each of the following ‘‘(7) include a plan for providing informa- MEETINGS.— categories— tion to the public in a coordinated manner.’’. ‘‘(A) COUNTERMEASURES DEVELOPMENT ‘‘(i) a hospital including children’s hos- SEC. 313. TRAINING FOR PEDIATRIC ISSUES SUR- MEETINGS AND CONSULTATIONS.—The Sec- pitals, clinic, health center, or primary care ROUNDING BIOLOGICAL AGENTS retary may conduct meetings and consulta- facility; USED IN WARFARE AND TERRORISM. tions with parties involved in the develop- ‘‘(ii) a political subdivision of a State; and Section 319F(f) of the Public Health Serv- ment of priority countermeasures for the ‘‘(iii) a department of public health; ice Act (42 U.S.C. 247d–6(e)), as so redesig- purpose of the development, manufacture, ‘‘(B) prepare, in consultation with the nated by section 311, is amended— distribution, purchase, or sale of priority Chief Executive Officer of the State, Dis- (1) in paragraph (1)— countermeasures consistent with the pur- trict, or territory in which the hospital, clin- (A) by inserting ‘‘(including mental health poses of this title. The Secretary shall give ic, health center, or primary care facility is care)’’ after ‘‘and care’’; and notice of such meetings and consultations to located, and submits to the Secretary, an ap- (B) by striking ‘‘and’’ at the end; the Attorney General and the Chairperson of plication at such time, in such manner, and (2) in paragraph (2), by striking the period the Federal Trade Commission (referred to containing such information as the Sec- and inserting ‘‘; and’’; and in this subsection as the ‘Chairperson’). retary may require; (3) by adding at the end the following: ‘‘(B) MEETING AND CONSULTATION CONDI- ‘‘(C) within a reasonable period of time ‘‘(3) develop educational programs for TIONS.—A meeting or consultation conducted after receiving a grant under paragraph (1), health care professionals, recognizing the under subparagraph (A) shall—

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00231 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S14004 CONGRESSIONAL RECORD — SENATE December 20, 2001 ‘‘(i) be chaired or, in the case of a consulta- ‘‘(I) that the agreement involved is nec- ‘‘(v) the testing in connection with the pro- tion, facilitated by the Secretary; essary to ensure the availability of priority duction of a product, process, or services ‘‘(ii) be open to parties involved in the de- countermeasures; necessary to the development of priority velopment, manufacture, distribution, pur- ‘‘(II) that the exemption from the antitrust countermeasures; chase, or sale of priority countermeasures, laws would promote the public interest; and ‘‘(vi) the collection, exchange, and analysis as determined by the Secretary; ‘‘(III) that there is no substantial competi- of research or production information nec- ‘‘(iii) be open to the Attorney General and tive impact to areas not directly related to essary to the development of priority coun- the Chairperson; the purposes of the agreement; and termeasures; or ‘‘(iv) be limited to discussions involving ‘‘(ii) may consider any other factors deter- ‘‘(vii) any combination of the purposes de- the development, manufacture, distribution, mined relevant by the Attorney General and scribed in clauses (i) through (vi); or sale of priority countermeasures, con- the Chairperson. and such term may include the establish- sistent with the purposes of this title; and ‘‘(5) LIMITATION ON AND RENEWAL OF EXEMP- ment and operation of facilities for the con- ‘‘(v) be conducted in such manner as to en- TIONS.—An exemption granted under para- duct of covered activities described in sure that national security, confidential, and graph (4) shall be limited to covered activi- clauses (i) through (vi), the conduct of such proprietary information is not disclosed out- ties, and shall expire on the date that is 3 covered activities on a protracted and pro- side the meeting or consultation. years after the date on which the exemption prietary basis, and the processing of applica- ‘‘(C) MINUTES.—The Secretary shall main- becomes effective (and at 3 year intervals tions for patents and the granting of licenses tain minutes of meetings and consultations thereafter, if renewed) unless the Attorney for the results of such covered activities. under this subsection, which shall not be dis- General in consultation with the Chair- ‘‘(B) EXCEPTION.—The term ‘covered activi- closed under section 552 of title 5, United person determines that the exemption should ties’ shall not include the following activi- States Code. be renewed (with modifications, as appro- ties involving 2 or more persons: ‘‘(D) EXEMPTION.—The antitrust laws shall priate) considering the factors described in ‘‘(i) Exchanging information among com- not apply to meetings and consultations paragraph (4). petitors relating to costs, sales, profit- under this paragraph, except that any agree- ‘‘(6) LIMITATION ON PARTIES.—The use of ability, prices, marketing, or distribution of ment or conduct that results from a meeting any information acquired under an exempted or consultation and that does not receive an agreement by the parties to such an agree- any product, process, or service if such infor- exemption pursuant to this subsection shall ment for any purposes other than those spec- mation is not reasonably necessary to carry be subject to the antitrust laws. ified in the antitrust exemption granted by out the purposes of covered activities. ‘‘(ii) Entering into any agreement or en- ‘‘(2) WRITTEN AGREEMENTS.—The Secretary the Attorney General shall be subject to the shall file a written agreement regarding cov- antitrust laws and any other applicable laws. gaging in any other conduct— ‘‘(I) to restrict or require the sale, licens- ered activities, made pursuant to meetings ‘‘(7) GUIDELINES.—The Attorney General or consultations conducted under paragraph and the Chairperson may develop and issue ing, or sharing of inventions, developments, (1) and that is consistent with this para- guidelines to implement this subsection. products, processes, or services not devel- graph, with the Attorney General and the ‘‘(8) REPORT.—Not later than 1 year after oped through, produced by, or distributed or Chairperson for a determination of the com- the date of enactment of the Bioterrorism sold through such covered activities; or pliance of such agreement with antitrust Preparedness Act of 2001, and annually there- ‘‘(II) to restrict or require participation by laws. In addition to the proposed agreement after, the Attorney General and the Chair- any person who is a party to such covered ac- itself, any such filing shall include— person shall report to Congress on the use tivities in other research and development ‘‘(A) an explanation of the intended pur- and continuing need for the exemption from activities, that is not reasonably necessary pose of the agreement; the antitrust laws provided by this sub- to prevent the misappropriation of propri- ‘‘(B) a specific statement of the substance section. etary information contributed by any person of the agreement; ‘‘(9) SUNSET.—The authority of the Attor- who is a party to such covered activities or ‘‘(C) a description of the methods that will ney General to grant or renew a limited anti- of the results of such covered activities. be utilized to achieve the objectives of the trust exemption under this subsection shall ‘‘(iii) Entering into any agreement or en- agreement; expire at the end of the 6-year period that gaging in any other conduct allocating a ‘‘(D) an explanation of the necessity of a begins on the date of enactment of the Bio- market with a competitor that is not ex- cooperative effort among the particular par- terrorism Preparedness Act of 2001. pressly exempted from the antitrust laws by ticipating parties to achieve the objectives ‘‘(h) DEFINITIONS.—In this section and title a determination under subsection (i)(4). of the agreement; and XXVIII of the Public Health Service Act: ‘‘(iv) Exchanging information among com- ‘‘(E) any other relevant information deter- ‘‘(1) ANTITRUST LAWS.—The term ‘antitrust petitors relating to production (other than mined necessary by the Secretary in con- laws’— production by such covered activities) of a sultation with the Attorney General and the ‘‘(A) has the meaning given such term in product, process, or service if such informa- Chairperson. subsection (a) of the first section of the Clay- tion is not reasonably necessary to carry out ‘‘(3) DETERMINATION.—The Attorney Gen- ton Act (15 U.S.C. 12(a)), except that such the purpose of such covered activities. eral, in consultation with the Chairperson, term includes the Act of June 19, 1936 (15 ‘‘(v) Entering into any agreement or en- shall determine whether an agreement re- U.S.C. 13 et seq.) commonly known as the gaging in any other conduct restricting, re- garding covered activities referred to in Robinson-Patman Act), and section 5 of the quiring, or otherwise involving the produc- paragraph (2) would likely— Federal Trade Commission Act (15 U.S.C. 45) tion of a product, process, or service that is ‘‘(A) be in compliance with the antitrust to the extent such section 5 applies to unfair not so expressly exempted from the antitrust laws, and so inform the Secretary and the methods of competition; and laws by a determination under subsection participating parties; or ‘‘(B) includes any State law similar to the (i)(4). ‘‘(B) violate the antitrust laws, in which laws referred to in subparagraph (A). ‘‘(vi) Except as otherwise provided in this case, the filing shall be deemed to be a re- ‘‘(2) COVERED ACTIVITIES.— subsection, entering into any agreement or quest for an exemption from the antitrust ‘‘(A) IN GENERAL.—Except as provided in engaging in any other conduct to restrict or laws, limited to the performance of the subparagraph (B), the term ‘covered activi- require participation by any person who is a agreement consistent with the purposes of ties’ means any group of activities or con- party to such activities, in any unilateral or this title. duct, including attempting to make, mak- joint activity that is not reasonably nec- ‘‘(4) ACTION ON REQUEST FOR EXEMPTION.— ing, or performing a contract or agreement essary to carry out the purpose of such cov- ‘‘(A) IN GENERAL.—The Attorney General, or engaging in other conduct, for the purpose ered activities. in consultation with the Chairperson, shall of— ‘‘(3) DEVELOPMENT.—The term ‘develop- grant, deny, grant in part and deny in part, ‘‘(i) theoretical analysis, experimentation, ment’ includes the identification of suitable or propose modifications to a request for ex- or the systematic study of phenomena or ob- compounds or biological materials, the con- emption from the antitrust laws under para- servable facts necessary to the development duct of preclinical and clinical studies, the graph (3) within 15 days of the receipt of such of priority countermeasures; preparation of an application for marketing request. ‘‘(ii) the development or testing of basic approval, and any other actions related to ‘‘(B) EXTENSION.—The Attorney General engineering techniques necessary to the de- preparation of a countermeasure. may extend the 15-day period referred to in velopment of priority countermeasures; ‘‘(4) PERSON.—The term ‘person’ has the subparagraph (A) for an additional period of ‘‘(iii) the extension of investigative find- meaning given such term in subsection (a) of not to exceed 10 days. Such additional period ings or theory of a scientific or technical na- the first section of the Clayton Act (15 U.S.C. may be further extended only by the United ture into practical application for experi- 12(a)). States district court, upon an application by mental and demonstration purposes, includ- ‘‘(5) PRIORITY COUNTERMEASURE.—The term the Attorney General after notice to the Sec- ing the experimental production and testing ‘priority countermeasure’ means a counter- retary and the parties involved. of models, prototypes, equipment, materials, measure, including a drug, medical device, ‘‘(C) DETERMINATION.—In granting an ex- and processes necessary to the development biological product, or diagnostic test to emption under this paragraph, the Attorney of priority countermeasures; treat, identify, or prevent infection by a bio- General, in consultation with the Chair- ‘‘(iv) the production, distribution, or mar- logical agent or toxin on the list developed person and the Secretary— keting of a product, process, or service that under section 351A(a)(1) and prioritized under (i) must find— is a priority countermeasures; subsection (a)(1).’’.

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SEC. 402. DEVELOPING NEW COUNTERMEASURES SEC. 403. SEQUENCING OF PRIORITY PATHO- (2) DEFINITION.—In this subsection the AGAINST BIOTERRORISM. GENS. term ‘‘priority drugs or biological products’’ Title XXVIII of the Public Health Service Section 319F(g) of the Public Health Serv- means a drug or biological product that is Act, as added by section 101 and amended by ice Act (42 U.S.C. 247d–6(f)), as so redesig- the subject of a drug application referred to section 201, is further amended by adding at nated by section 311, is amended— in section 101(4) of the Food and Drug Ad- the end the following: (1) in paragraph (3), by striking ‘‘and’’ at ministration Modernization Act of 1997. the end; SEC. 406. USE OF ANIMAL TRIALS IN THE AP- ‘‘Subtitle B—Developing New (2) by redesignating paragraph (4) as para- Countermeasures Against Bioterrorism PROVAL OF PRIORITY COUNTER- graph (5); and MEASURES. ‘‘SEC. 2841. SMALLPOX VACCINE AND OTHER VAC- (3) by inserting after paragraph (3), the fol- Not later than 30 days after the date of en- CINE DEVELOPMENT. lowing: actment of this Act, the Secretary of Health ‘‘(a) IN GENERAL.—The Secretary shall ‘‘(4) the sequencing of the genomes of pri- and Human Services shall issue a final rule award contracts, enter into cooperative ority pathogens as determined appropriate for the proposal entitled ‘‘New Drug and Bio- agreements, or carry out such other activi- by the Director of the National Institutes of logical Drug Products; Evidence Needed to ties as may reasonably be required in order Health, in consultation with the working Demonstrate Efficacy of New Drugs for Use to ensure that the stockpile described in sec- group established in subsection (a); and’’. Against Lethal or Permanently Disabling tion 2812 shall include the number of doses of SEC. 404. ACCELERATED COUNTERMEASURE RE- Toxic Substances When Efficacy Studies in vaccine against smallpox and other such vac- SEARCH AND DEVELOPMENT. Humans Ethically Cannot be Conducted’’ as cines determined by the Secretary to be suf- Section 319F(g) of the Public Health Serv- published in the Federal Register on October ficient to meet the needs of the population of ice Act (42 U.S.C. 247d–6(f)), as so redesig- 5, 1999 (64 Fed. Reg.). nated by section 311 and amended by section the United States. SEC. 407. MISCELLANEOUS PROVISIONS. 403, is further amended— ‘‘(b) RULE OF CONSTRUCTION.—Nothing in Title XXVIII of the Public Health Service (1) by redesignating paragraphs (1) through this section shall be construed to limit the Act, as added by section 101 and amended by (5), as subparagraphs (A) through (E), respec- private distribution, purchase, or sale of vac- section 403, is further amended by adding at tively and indenting appropriately; cines from sources other than the stockpile the end the following: described in subsection (a). (2) by striking ‘‘The Secretary’’ and insert- ing the following: ‘‘Subtitle C—Miscellaneous Provisions ‘‘(c) AUTHORIZATION OF APPROPRIATIONS.— ‘‘(1) IN GENERAL.—The Secretary’’; and ‘‘SEC. 2851. SUPPLEMENT NOT SUPPLANT. There is authorized to be appropriated to (3) by adding at the end the following: ‘‘A State or local government, or other en- carry out this section, $509,000,000 for fiscal ‘‘(2) ACCELERATED COUNTERMEASURE RE- tity to which a grant, contract, or coopera- year 2002, and such sums as may be necessary SEARCH AND DEVELOPMENT.— tive agreement is awarded under this title, for each of fiscal years 2003 through 2006. ‘‘(A) IN GENERAL.—The Secretary shall con- may not use amounts received under the ‘‘SEC. 2842. CONTRACT AUTHORITY FOR PRI- duct, and award grants, contracts, or cooper- grant, contract, or cooperative agreement to ORITY COUNTERMEASURES. ative agreements for, research, investiga- supplant expenditures by the entity for ac- ‘‘(a) IN GENERAL.—The Secretary shall, to tions, experiments, demonstrations, and tivities provided for under this title, but the extent the Secretary determines nec- studies in the health sciences relating to— shall use such amounts only to supplement essary to achieve the purposes of this title, ‘‘(i) the epidemiology and pathogenesis of such expenditures at a level at least equal to enter into long-term contracts and com- biological agents or toxins of potential use the level of such expenditures for fiscal year parable grants or cooperative agreements, in a bioterrorist attack; 2001 (excluding those additional, extraor- for the purpose of— ‘‘(ii) the development of new vaccines and dinary expenditures that may have been ‘‘(1) ensuring the development of priority therapeutics for use against biological made after September 10, 2001).’’. countermeasures that are necessary to pre- agents or toxins of potential use in a bioter- TITLE V—PROTECTING THE SAFETY AND pare for a bioterrorist attack or other sig- rorist attack; SECURITY OF THE FOOD SUPPLY nificant disease emergency; ‘‘(iii) the development of diagnostic tests Subtitle A—General Provisions to Expand ‘‘(2) securing the manufacture, distribu- to detect biological agents or toxins of po- and Upgrade Security tion, and adequate supply of such counter- tential use in a bioterrorist attack; and measures, including through the develop- ‘‘(iv) other relevant areas of research; SEC. 511. FOOD SAFETY AND SECURITY STRAT- ment of novel production methods for such with consideration given to the needs of chil- EGY. countermeasures; dren and other vulnerable populations. (a) IN GENERAL.—The President’s Council ‘‘(3) maintaining the Strategic National ‘‘(B) PRIORITY.—The Secretary shall give on Food Safety (as established by Executive Pharmaceutical Stockpile under section priority under this paragraph to the funding Order 13100), the Secretary of Commerce, and 2812; and of research and other studies related to pri- the Secretary of Transportation, shall, in ‘‘(4) carrying out such other activities de- ority countermeasures.’’. consultation with the food industry and con- termined appropriate by the Secretary to SEC. 405. ACCELERATED APPROVAL OF PRIORITY sumer and producer groups, and the States, achieve the purposes of this title. COUNTERMEASURES. develop a crisis communications and edu- cation strategy with respect to bioterrorist ‘‘(b) TERMS OF CONTRACTS.—Notwith- (a) IN GENERAL.—The Secretary of Health standing any other provision of law, the Sec- and Human Services may designate a pri- threats to the food supply. Such strategy retary may enter into a contract or coopera- ority countermeasure as a fast-track product shall address threat assessments, response tive agreement under subsection (a) prior to pursuant to section 506 of the Federal Food, and notification procedures, and risks com- the development, approval, or clearance of Drug, and Cosmetic Act (21 U.S.C. 356) or as munications to the public. UTHORIZATION OF APPROPRIATIONS.— the countermeasure that is the subject of the a device granted priority review pursuant to (b) A There is authorized to be appropriated, contract. The contract or cooperative agree- section 515(d)(5) of such Act (21 U.S.C. $500,000 for fiscal year 2002, and such sums as ment may provide for its termination for the 366e(d)(5)). Such a designation may be made may be necessary in each subsequent fiscal convenience of the Federal Government if prior to the submission of— year to implement the strategy developed the contractor does not develop the counter- (1) a request for designation by the sponsor under subsection (a) in cooperation with the measure involved. Such a contract or cooper- or applicant; or Secretary of Agriculture, the Secretary of ative agreement may— (2) an application for the investigation of Health and Human Services, and the Admin- ‘‘(1) involve one or more aspects of the de- the drug under section 505(i) of such Act or istrator of the Environmental Protection velopment, manufacture, purchase, or dis- section 351(a)(3) of the Public Health Service Agency. tribution of one or more uses of one or more Act. countermeasures; and Nothing in this subsection shall be construed SEC. 512. EXPANSION OF ANIMAL AND PLANT ‘‘(2) set forth guaranteed minimum quan- to prohibit a sponsor or applicant from de- HEALTH INSPECTION SERVICE AC- TIVITIES. tities of products and negotiated unit prices. clining such a designation. (b) USE OF ANIMAL TRIALS.—A drug for (a) IN GENERAL.—The Secretary of Agri- ‘‘SEC. 2843. SECURITY FOR COUNTERMEASURE which approval is sought under section 505(d) culture (referred to in this section as the DEVELOPMENT AND PRODUCTION. of the Federal Food, Drug, and Cosmetic Act ‘‘Secretary’’) shall enhance and expand the ‘‘(a) IN GENERAL.—The Secretary, in con- or section 351 of the Public Health Service capacity of the Animal and Plant Health In- sultation with the Attorney General and the Act on the basis of evidence of effectiveness spection Service through the conduct of ac- Secretary of Defense, may provide technical that is derived from animal studies under tivities to— or other assistance, to provide security to section 406 may be designated as a fast track (1) increase the inspection capacity of the persons or facilities that conduct develop- product for purposes of this section. Service at international points of origin; ment, production, distribution, or storage of (c) PRIORITY REVIEW.— (2) improve surveillance at ports of entry priority countermeasures. (1) IN GENERAL.—A priority counter- and customs; ‘‘(b) BEST PRACTICES.—The Secretary shall measure that is a drug or biological product (3) enhance methods of protecting against develop guidelines and best practices to en- shall be subject to the performance goals es- the introduction of plant and animal disease able entities eligible to receive assistance tablished by the Commissioner of Food and organisms by terrorists; under this section to secure their facilities Drugs for priority drugs or biological prod- (4) adopt new strategies and technologies against potential terrorist attack.’’. ucts. for dealing with intentional outbreaks of

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plant and animal disease arising from acts of (b) AUTHORIZATION OF APPROPRIATIONS.— ties necessary to develop a national inven- terrorism or from unintentional introduc- There is authorized to be appropriated to tory of hazardous biological agents and tox- tion, including— carry out this section, $15,000,000 for fiscal ins contained in agricultural research facili- (A) establishing cooperative agreements year 2002, and such sums as may be necessary ties. Such activities shall include developing among Veterinary Services of the Animal for each subsequent fiscal year. and distributing a model inventory proce- and Plant Health Inspection Service, State SEC. 514. EXPANSION OF FOOD AND DRUG AD- dure, developing secure means of transmit- animal health commissions and regulatory MINISTRATION ACTIVITIES. ting inventory information, and conducting agencies for livestock and poultry health, (a) IN GENERAL.—The Secretary of Health annual inventory activities. The inventory and private veterinary practitioners to en- and Human Services shall expand the capac- shall be developed in coordination with, or as hance the preparedness and ability of Veteri- ity of the Food and Drug Administration a component of, similar systems in existence nary Services and the commissions and agen- to— on the date of enactment of this Act. cies to respond to outbreaks of such animal (1) increase inspections to ensure the safe- (c) SCREENING PROTOCOL.—The Secretary diseases; and ty of the food supply consistent with the shall establish a national protocol for the (B) strengthening planning and coordina- amendments made by subtitle B; and screening of individuals who require access tion with State and local agencies, includ- (2) improve linkages between the Agency to agricultural research facilities in a man- ing— and other regulatory agencies of the Federal ner that provides for the protection of per- (i) State animal health commissions and Government, the States, and Indian tribes sonal privacy. regulatory agencies for livestock and poultry with shared responsibilities. (d) INDUSTRY-ON-FARM EDUCATION.— health; and (b) AUTHORIZATION OF APPROPRIATIONS.— (1) IN GENERAL.—The Secretary shall de- (ii) State agriculture departments; and There is authorized to be appropriated to velop and implement a program to provide (5) otherwise expand the capacity of the carry out this section, $59,000,000 for fiscal education relating to farms, livestock con- Service to protect against the threat of bio- year 2002, and such sums as may be necessary finement operations, and livestock auction terrorism. for each subsequent fiscal year. biosecurity to prevent the intentional or ac- (b) HIGH-TECH AGRICULTURE EARLY WARN- SEC. 515. BIOSECURITY UPGRADES AT THE DE- cidental introduction of a foreign animal dis- ING AND EMERGENCY RESPONSE SYSTEM.— PARTMENT OF AGRICULTURE. ease and to attempt to discover the introduc- (1) IN GENERAL.—To provide the agricul- There is authorized to be appropriated for tion of such a disease before it can spread tural system of the United States with a fiscal year 2002, $180,000,000 to enable the Ag- into an outbreak. Biosecurity for livestock new, enhanced level of protection and bio- ricultural Research Service to conduct build- includes animal quarantine procedures, security that does not exist on the date of ing upgrades to modernize existing facilities, blood testing of new arrivals, farm locations, enactment of this Act, the Secretary of Agri- of which (1) $100,000,000 is allocated for ren- control of human movement onto farms and culture, in coordination with the Secretary ovation, updating, and expansion of the Bio- holding facilities, control of vermin, and of Health and Human Services, shall imple- safety Level 3 laboratory and animal re- movement of vehicles onto farms. ment a fully secure surveillance and re- search facilities at the Plum Island Animal (2) QUARANTINE AND TESTING.—The Sec- sponse system that utilizes, or is capable of Disease Center (Greenport, New York), and retary shall develop and disseminate through utilizing, field test devices capable of detect- of which (2) $80,000,000 is allocated for the educational programs animal quarantine and ing biological threats to animals and plants Agricultural Research Service/Animal and testing guidelines to enable farmers and pro- and that electronically integrates the de- Plant Health Inspection Service facility in ducers to better monitor new arrivals. Any vices and the tests on a real-time basis into Ames, Iowa. There is authorized to be appro- educational seminars and training carried a comprehensive surveillance, incident man- priated such sums as may be necessary in fis- out by the Secretary under this paragraph agement, and emergency response system. cal years 2003 through 2006 for (1), (2) and the shall emphasize the economic benefits of bio- (2) EXPANSION OF SYSTEM.—The Secretary planning and design of an Agricultural Re- security and the profound negative impact of shall expand the system implemented under search Service biocontainment laboratory an outbreak. paragraph (1) as soon as practicable to in- for poultry research in Athens, Georgia, and (3) CROP GUIDELINES.—The Secretary may clude other Federal agencies and the States the planning, updating, and renovation of develop guidelines and educational materials where appropriate and necessary to enhance the Arthropod-Borne Animal Disease Lab- relating to biosecurity issues to be distrib- the protection of the food and agriculture oratory in Laramie, Wyoming. uted to local crop producers and facilities system of the United States. To facilitate SEC. 516. BIOSECURITY UPGRADES AT THE DE- that handle, process, or transport crops. the expansion of the system, the Secretary PARTMENT OF HEALTH AND HUMAN (e) AUTHORIZATION OF APPROPRIATIONS.— shall award grants to States. SERVICES. There is authorized to be appropriated to (c) AUTOMATED RECORDKEEPING SYSTEM.— The Secretary of Health and Human Serv- carry out this section, $20,000,000 for fiscal The Administrator of the Animal and Plant ices shall take such actions as may be nec- year 2002, and such sums as may be necessary Health Inspection Service shall implement a essary to secure existing facilities of the De- for each subsequent fiscal year, of which not central automated recordkeeping system to partment of Health and Human Services less than $5,000,000 shall be made available in provide for the reliable tracking of the sta- where potential animal and plant pathogens fiscal year 2002 for activities under sub- tus of animal and plant shipments, including are housed or researched. section (a). those shipments on hold at ports of entry SEC. 517. AGRICULTURAL BIOSECURITY. SEC. 518. BIOSECURITY OF FOOD MANUFAC- and customs. The Secretary shall ensure TURING, PROCESSING, AND DIS- (a) LAND GRANT ASSESSMENTS.— that such a system shall be fully accessible TRIBUTION. (1) IN GENERAL.—The Secretary of Agri- to or fully integrated with the Food Safety (a) IN GENERAL.—The Secretary of Health culture (referred to in this section as the Inspection Service. and Human Services (referred to in this sec- ‘‘Secretary’’) shall establish minimum secu- (d) AUTHORIZATION OF APPROPRIATIONS.— tion as the ‘‘Secretary’’), in consultation rity standards and award grants to land There is authorized to be appropriated to with the Attorney General, may award grant universities to conduct security needs carry out this section, $30,000,000 for fiscal grants, contracts, or cooperative agreements year 2002, and such sums as may be necessary assessments and to plan for improvement to enable food manufacturers, food proc- for each subsequent fiscal year. of— essors, food distributors, and other entities (A) the security of all facilities where haz- SEC. 513. EXPANSION OF FOOD SAFETY INSPEC- regulated by the Secretary to ensure the TION SERVICE ACTIVITIES. ardous biological agents and toxins are safety of food through the development and (a) IN GENERAL.—The Secretary of Agri- stored or used for agricultural research pur- implementation of educational programs to culture shall enhance and expand the capac- poses; and ensure the security of their facilities and ity of the Food Safety Inspection Service (B) communication networks that trans- modes of transportation against potential through the conduct of activities to— mit information about hazardous biological bioterrorist attack. (1) enhance the ability of the Service to in- agents and toxins. (b) BEST PRACTICES.—The Secretary may spect and ensure the safety and wholesome- (2) AVAILABILITY OF STANDARDS.—Not later develop best practices to enable entities eli- ness of meat and poultry products; than 45 days after the establishment of secu- gible for funding under this section to secure (2) improve the capacity of the Service to rity standards under paragraph (1), the Sec- their facilities and modes of transportation inspect international meat and meat prod- retary shall make such standards available against potential bioterrorist attacks. ucts, poultry and poultry products, and egg to land grant universities. (c) AUTHORIZATION OF APPROPRIATIONS.— products at points of origin and at ports of (3) GRANTS.—Not later than 45 days after There is authorized to be appropriated to entry; the date of enactment of this Act, the Sec- carry out this section, $500,000 in fiscal year (3) strengthen the ability of the Service to retary shall award grants, not to exceed 2002, and such sums as may be necessary for collaborate with relevant agencies within $50,000 each, to land grant universities to en- each fiscal year thereafter. the Department of Agriculture and with able such universities to conduct a security other entities in the Federal Government, needs assessment and plan activities to im- Subtitle B—Protection of the Food Supply the States, and Indian tribes through the prove security. Such an assessment shall be SEC. 531. ADMINISTRATIVE DETENTION. sharing of information and technology; and completed not later than 45 days after the (a) EXPANDED AUTHORITY.—Section 304 of (4) otherwise expand the capacity of the date on which such grant funds are received. the Federal Food, Drug and Cosmetic Act (21 Service to protect against the threat of bio- (b) NATIONAL HAZARDOUS AGENT INVEN- U.S.C. 334) is amended by adding at the end terrorism. TORY.—The Secretary shall carry out activi- the following:

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‘‘(h) ADMINISTRATIVE DETENTION OF (2) CONFORMING AMENDMENT.—Section ‘‘(1) to promptly trace the source and chain FOODS.— 306(b)(2) of the Federal Food, Drug, and Cos- of distribution of food and its packaging to ‘‘(1) AUTHORITY.—Any officer or qualified metic Act (21 U.S.C. 335a(b)(2)) is amended— address threats of serious adverse health employee of the Food and Drug Administra- (A) in the paragraph heading, by inserting consequences or death to humans or animals; tion may order the detention, in accordance ‘‘RELATING TO DRUG APPLICATIONS’’ after ‘‘DE- or with this subsection, of any article of food BARMENT’’; and ‘‘(2) to determine whether food manufac- that is found during an inspection, examina- (B) in the matter preceding subparagraph tured, processed, packed, or held by the per- tion, or investigation under this Act con- (A), by striking ‘‘paragraph (1)’’ and insert- son may be adulterated or misbranded to the ducted by such officer or qualified employee, ing ‘‘subparagraphs (A) and (B) of paragraph extent that it presents a threat of serious ad- if the officer or qualified employee has cred- (1)’’. verse health consequences or death to hu- ible evidence or information indicating that (3) DEBARMENT PERIOD.—Section mans or animals under this Act. the article is in violation of this Act and pre- 306(c)(2)(A)(iii) of the Federal Food, Drug, The Secretary may impose reduced require- sents a threat of serious adverse health con- and Cosmetic Act (21 U.S.C. 335a(c)(2)(A)(iii)) ments under such regulations for small busi- sequences or death to humans or animals. is amended by striking ‘‘subsection (b)(2)’’ nesses with 50 or fewer employees. ‘‘(2) PERIOD OF DETENTION; APPROVAL BY and inserting ‘‘subsection (b)(1)(C) or (b)(2)’’. ‘‘(c) LIMITATIONS.—Nothing in this section SECRETARY OR SECRETARY’S DESIGNEE.— (4) TERMINATION OF DEBARMENT.—Section shall be construed— ‘‘(A) DURATION.—An article of food may be 306(d)(3) of the Federal Food, Drug, and Cos- ‘‘(1) to limit the authority of the Secretary detained under this subsection for a reason- metic Act (21 U.S.C. 335a(d)(3)) is amended— to inspect records or to require maintenance able period, not to exceed 20 days, unless a (A) in subparagraph (A)(i), by striking ‘‘or of records under any other provision of or greater period of time, not to exceed 30 days, (b)(2)(A)’’ and inserting ‘‘, or (b)(2)(A), or regulations issued under this Act; is necessary to enable the Secretary to insti- (b)(1)(C)’’; ‘‘(2) to authorize the Secretary to impose tute an action under subsection (a) or sec- (B) in subparagraph (A)(ii)(II), by inserting any requirements with respect to a food to tion 302. ‘‘in applicable cases,’’ before ‘‘sufficient au- the extent that it is within the exclusive ju- ‘‘(B) SECRETARY’S APPROVAL.—Before an dits’’; and risdiction of the Secretary of Agriculture article of food may be ordered detained (C) in subparagraph (B), in each of clauses pursuant to the Federal Meat Inspection Act under this subsection, the Secretary or an (i) and (ii), by inserting ‘‘or (b)(1)(C)’’ after (21 U.S.C. 601 et seq.), the Poultry Products officer or qualified employee designated by ‘‘(b)(2)(B)’’. Inspection Act (21 U.S.C. 451 et seq.), or the the Secretary must approve such order, after (5) EFFECTIVE DATES.—Section 306(l)(2) of Egg Products Inspection Act (21 U.S.C. 1031 determining that the article presents a the Federal Food, Drug, and Cosmetic Act et seq.); threat of serious adverse health con- (21 U.S.C. 335a(l)(2)) is amended— ‘‘(3) to extend to recipes for food, financial sequences or death to humans or animals. (A) in the first sentence, by inserting ‘‘and data, sales data other than shipment data, ‘‘(3) SECURITY OF DETAINED ARTICLE.—A de- subsection (b)(1)(C)’’ after ‘‘subsection pricing data, personnel data, or research tention order under this subsection with re- (b)(2)(B)’’; and data; or spect to an article of food may require that (B) in the second sentence, by striking ‘‘(4) to alter, amend, or affect in any way the article be labeled or marked as detained, ‘‘and subsections (f) and (g) of this section’’ the disclosure or nondisclosure under section and may require that the article be removed and inserting ‘‘subsections (f) and (g), and 552 of title 5, United States Code, of informa- to a secure facility. An article subject to a subsection (b)(1)(C)’’. tion copied or collected under this section, detention order under this subsection shall (b) CONFORMING AMENDMENT.—Section 402 or its treatment under section 1905 of title not be moved by any person from the place of the Federal Food, Drug, and Cosmetic Act 18, United States Code.’’. at which it is ordered detained until released (21 U.S.C. 342) is amended by adding at the (b) FACTORY INSPECTION.—Section 704(a) of by the Secretary, or the expiration of the de- end the following: the Federal Food, Drug, and Cosmetic Act tention period applicable to such order, ‘‘(h) If it is an article of food imported or (21 U.S.C. 374(a)) is amended— whichever occurs first. offered for import into the United States by, (1) in paragraph (1), by adding after the ‘‘(4) APPEAL OF DETENTION ORDER.—Any with the assistance of, or at the direction of, first sentence the following: ‘‘In the case of person who would be entitled to claim a de- a person debarred under section any person (excluding restaurants and farms) tained article if it were seized under sub- 306(b)(1)(C).’’. that manufactures, processes, packs, trans- ports, distributes, receives, holds, or imports section (a) may appeal to the Secretary the SEC. 533. MAINTENANCE AND INSPECTION OF detention order under this subsection. With- RECORDS FOR FOODS. foods, the inspection shall extend to all records and other information described in in 15 days after such an appeal is filed, the (a) IN GENERAL.—Chapter IV of the Federal Secretary, after affording opportunity for an Food, Drug and Cosmetic Act (21 U.S.C. 341 section 414(a), or required to be maintained informal hearing, shall by order confirm the et seq.) is amended by adding at the end the pursuant to section 414(b).’’; and detention order or revoke it. following: (2) in paragraph (2), in the matter pre- ‘‘(5) PERISHABLE FOODS.—The Secretary ceding subparagraph (A), by striking ‘‘second ‘‘SEC. 414. MAINTENANCE AND INSPECTION OF sentence’’ and inserting ‘‘third sentence’’. shall provide in regulation or in guidance for RECORDS. procedures for instituting and appealing on (c) PROHIBITED ACT.—Section 301 of the ‘‘(a) IN GENERAL.—If the Secretary has rea- Federal Food, Drug and Cosmetic Act (21 an expedited basis administrative detention son to believe that an article of food is adul- of perishable foods.’’. U.S.C. 331) is amended— terated or misbranded under this Act and (1) in subsection (e)— (b) PROHIBITED ACT.—Section 301 of the presents a threat of serious adverse health (A) by striking ‘‘by section 412, 504, or 703’’ Federal Food, Drug and Cosmetic Act (21 consequences or death to humans or animals, and inserting ‘‘by section 412, 414, 504, 703, or U.S.C. 331) is amended by adding at the end each person (excluding restaurants and 704(a)’’; and the following new subsection: farms) that manufactures, processes, packs, (B) by striking ‘‘under section 412’’ and in- ‘‘(bb) The movement of an article of food in distributes, receives, holds, or imports such serting ‘‘under section 412, 414(b)’’; and violation of an order under section 304(h), or food shall, at the request of an officer or em- (2) in section (j), by inserting ‘‘414,’’ after the removal or alteration of any mark or ployee duly designated by the Secretary, per- ‘‘412,’’. label required by the order in order to iden- mit such officer or employee, upon presen- (d) EXPEDITED RULEMAKING.—Not later tify the article as detained.’’. tation of appropriate credentials and a writ- than 18 months after the date of enactment ten notice to such person, at reasonable of this Act, the Secretary shall promulgate SEC. 532. DEBARMENT FOR REPEATED OR SERI- times and within reasonable limits and in a OUS FOOD IMPORT VIOLATIONS. proposed and final regulations establishing reasonable manner, to have access to and to recordkeeping requirements under sub- (a) DEBARMENT AUTHORITY.— copy all records relating to such food that section 414(b)(1) of the Federal Food, Drug, (1) PERMISSIVE DEBARMENT.—Section may assist the Secretary to determine the and Cosmetic Act. 306(b)(1) of the Federal Food, Drug, and Cos- cause and scope of the violation. This re- SEC. 534. REGISTRATION OF FOOD MANUFAC- metic Act (21 U.S.C. 335a(b)(1)) is amended— quirement applies to all records relating to TURING, PROCESSING, AND HAN- (A) by striking the period at the end of such manufacture, processing, packing, dis- DLING FACILITIES. subparagraph (B) and inserting ‘‘; or’’; and tribution, receipt, holding, or importation of (a) IN GENERAL.—Chapter IV of the Federal (B) by adding at the end the following: such food maintained by or on behalf of such Food, Drug, and Cosmetic Act (21 U.S.C. 341 ‘‘(C) a person from importing a food or of- person in any format (including paper and et seq.), as amended by section 533, is further fering a food for import into the United electronic formats) and at any location. amended by adding at the end the following: States if— ‘‘(b) REGULATIONS CONCERNING RECORD- ‘‘SEC. 415. REGISTRATION OF FOOD MANUFAC- ‘‘(i) the person has been convicted of a fel- KEEPING.—The Secretary shall promulgate TURING, PROCESSING, AND HAN- ony for conduct relating to the importation regulations regarding the maintenance and DLING FACILITIES. into the United States of any food; or retention of records for inspection for not ‘‘(a) REGISTRATION.— ‘‘(ii) the person has engaged in a pattern of longer than 2 years by persons (excluding ‘‘(1) IN GENERAL.—Any facility engaged in importing or offering for import adulterated restaurants and farms) that manufacture, manufacturing, processing, or handling food food that presents a threat of serious adverse process, pack, transport, distribute, receive, for consumption in the United States shall health consequences or death to humans or hold, or import food, as may be needed to be registered with the Secretary. To be reg- animals.’’. allow the Secretary— istered—

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00235 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S14008 CONGRESSIONAL RECORD — SENATE December 20, 2001 ‘‘(A) for a domestic facility, the owner, op- (1) at least 4 hours before the food is im- the person reoffering the article affirma- erator, or agent in charge of the facility ported or offered for importation, the food tively establishes, at the expense of the shall submit a registration to the Secretary; may be refused admission. owner or consignee of the article, that the and ‘‘(3) LIMITATION.—Nothing in this sub- article complies with the applicable require- ‘‘(B) for a foreign facility, the owner, oper- section shall be construed to authorize the ments of this Act, as determined by the Sec- ator, or agent in charge of the facility shall Secretary to impose any requirements with retary.’’. submit a registration to the Secretary and respect to a food to the extent that it is SEC. 539. GRANTS TO STATES FOR INSPECTIONS. shall include with the registration the name within the exclusive jurisdiction of the Sec- Chapter IX of the Federal Food, Drug and of the United States agent for the facility. retary of Agriculture pursuant to the Fed- Cosmetic Act (21 U.S.C. 391 et seq.) is amend- ‘‘(2) REGISTRATION.—An entity (referred to eral Meat Inspection Act (21 U.S.C. 601 et ed by adding at the end the following: in this section as the ‘registrant’) shall sub- seq.), the Poultry Products Inspection Act ‘‘SEC. 910. GRANTS TO STATES FOR INSPECTIONS. mit a registration under paragraph (1) to the (21 U.S.C. 451 et seq.), or the Egg Products ‘‘(a) IN GENERAL.—The Secretary is author- Secretary containing information necessary Inspection Act (21 U.S.C. 1031 et seq.).’’. ized to make grants to States, territories, to notify the Secretary of the name and ad- (b) PROHIBITION OF KNOWINGLY MAKING and Federally recognized Indian tribes that dress of each facility at which, and all trade FALSE STATEMENTS.—Section 301 of the Fed- undertake examinations, inspections, and in- names under which, the registrant conducts eral Food, Drug, and Cosmetic Act (21 U.S.C. vestigations, and related activities under business and, when determined necessary by 331), as amended by section 531(b), is further section 702. The funds provided under such the Secretary through guidance, the general amended by inserting after subsection (bb) food category (as identified under section grants shall only be available for the costs of the following: conducting such examinations, inspections, 170.3 of title 21, Code of Federal Regulations) ‘‘(cc) Knowingly making a false statement of any food manufactured, processed, or han- investigations, and related activities. in documentation required under section ‘‘(b) AUTHORIZATION OF APPROPRIATIONS.— dled at such facility. The registrant shall no- 801(j).’’. tify the Secretary in a timely manner of There are authorized to be appropriated SEC. 536. AUTHORITY TO MARK REFUSED ARTI- changes to such information. $10,000,000 for fiscal year 2002, and such sums CLES. as may be necessary to carry out this section ‘‘(3) PROCEDURE.—Upon receipt of a com- (a) MISBRANDED FOODS.—Section 403 of the pleted registration described in paragraph for each subsequent fiscal year.’’. Federal Food, Drug, and Cosmetic Act (21 (1), the Secretary shall notify the registrant SEC. 540. RULE OF CONSTRUCTION. U.S.C. 343), as amended by section 534(b), is of the receipt of such registration and assign Nothing in this title, or an amendment further amended by adding at the end the a registration number to each registered fa- made by this title, shall be construed to— following: cility. (1) provide the Food and Drug Administra- ‘‘(u) If— ‘‘(4) LIST.—The Secretary shall compile tion with additional authority related to the ‘‘(1) it has been refused admission under and maintain an up-to-date list of facilities regulation of meat, poultry, and egg prod- section 801(a); that are registered under this section. Such ucts; or ‘‘(2) it has not been required to be de- list and other information required to be (2) limit the authority of the Secretary of stroyed under section 801(a); submitted under this subsection shall not be Agriculture with respect to such products. ‘‘(3) the packaging of it does not bear a subject to the disclosure requirements of label or labeling described in section 801(a); Subtitle C—Research and Training to section 552 of title 5, United States Code. and Enhance Food Safety and Security ‘‘(b) EXEMPTION AUTHORITY.—The Sec- ‘‘(4) it presents a threat of serious adverse SEC. 541. SURVEILLANCE AND INFORMATION retary may by regulation exempt types of re- GRANTS AND AUTHORITIES. tail establishments or farms from the re- health consequences or death to humans or Part B of title III of the Public Health quirements of subsection (a) if the Secretary animals.’’. Service Act (42 U.S.C. 243 et seq.) is amended determines that the registration of such fa- (b) REQUIREMENT.—Section 801(a) of the by inserting after section 317P the following: cilities is not needed for effective enforce- Federal Food, Drug, and Cosmetic Act (21 ment of chapter IV and any regulations U.S.C. 381(a)) is amended by adding at the ‘‘SEC. 317Q. FOOD SAFETY GRANTS. issued under such chapter. end the following: ‘‘The Secretary of Health ‘‘(a) IN GENERAL.—The Secretary may ‘‘(c) FACILITY.—In this section, the term and Human Services may require the owner award food safety grants to States to expand ‘facility’ includes any factory, warehouse, or or consignee of a food that has been refused the number of States participating in establishment (including a factory, ware- admission under this section, and has not Pulsenet, the Foodborne Diseases Active house, or establishment of an importer), that been required to be destroyed, to affix to the Surveillance Network, and other networks to manufactures, handles, or processes food. packaging of the food a label or labeling enhance Federal, State, and local food safety Such term does not include restaurants. that— efforts. ‘‘(d) RULE OF CONSTRUCTION.—Nothing in ‘‘(1) clearly and conspicuously bears the ‘‘(b) USE OF FUNDS.—Funds awarded under this section shall be construed to authorize statement: ‘United States: Refused Entry’; this section shall be used by States to assist the Secretary to require an application, re- ‘‘(2) is affixed to the packaging until the such States in meeting the costs of estab- view, or licensing process.’’. food is brought into compliance with this lishing and maintaining the food safety sur- (b) MISBRANDED FOODS.—Section 403 of the Act; and veillance, technical and laboratory capacity Federal Food, Drug, and Cosmetic Act (21 ‘‘(3) has been provided at the expense of the needed to participate in Pulsenet, Foodborne U.S.C. 343) is amended by adding at the end owner or consignee of the food.’’. Diseases Active Surveillance Network, and the following: (c) RULE OF CONSTRUCTION.—Nothing in other networks to enhance Federal, State, ‘‘(t) If it is a food from a facility for which this section shall be construed to limit the and local food safety efforts. registration has not been submitted to the authority of the Secretary of Health and ‘‘(c) AUTHORIZATION OF APPROPRIATIONS.— Secretary under section 415(a).’’. Human Services or the Secretary of the There is authorized to be appropriated to (c) EFFECTIVE DATE.—The amendment carry out this section, $19,500,000 for fiscal made by subsection (b) shall take effect 180 Treasury to require the marking of refused days after the date of enactment of this Act. articles under any other provision of law. year 2002, and such sums as may be necessary for each of fiscal years 2003 through 2006. SEC. 535. PRIOR NOTICE OF IMPORTED FOOD SEC. 537. AUTHORITY TO COMMISSION OTHER SHIPMENTS. FEDERAL OFFICIALS TO CONDUCT ‘‘SEC. 317R. SURVEILLANCE OF ANIMAL AND INSPECTIONS. (a) PRIOR NOTICE OF IMPORTED FOOD SHIP- HUMAN HEALTH. MENTS.—Section 801 of the Federal Food, Section 702(a) of the Federal Food, Drug ‘‘The Secretary, through the Commissioner Drug, and Cosmetic Act (21 U.S.C. 381) is and Cosmetic Act (21 U.S.C. 372(a)) is amend- of the Food and Drug Administration and amended by adding at the end the following: ed in the first sentence— the Director of the Centers for Disease Con- ‘‘(j) PRIOR NOTICE OF IMPORTED FOOD SHIP- (1) by inserting ‘‘qualified’’ before ‘‘em- trol and Prevention, and the Secretary of MENTS.— ployees’’; and Agriculture shall develop and implement a ‘‘(1) IN GENERAL.—At least 4 hours before a (2) by inserting ‘‘or of other Federal De- plan for coordinating the surveillance for food is imported or offered for importation partments or agencies, notwithstanding any zoonotic disease and human disease.’’. into the United States, the producer, manu- other provision of law restricting the use of SEC. 542. AGRICULTURAL BIOTERRORISM RE- facturer, or shipper of the food shall provide a Department’s or agency’s officers, employ- SEARCH AND DEVELOPMENT. documentation to the Secretary of the ees, or funds,’’ after ‘‘officers and qualified (a) IN GENERAL.—The Secretary of Agri- Treasury and the Secretary of Health and employees of the Department’’. culture, to the maximum extent practicable, Human Services that— SEC. 538. PROHIBITION AGAINST PORT SHOP- shall utilize existing authorities to expand ‘‘(A) identifies— PING. Agricultural Research Service, and Coopera- ‘‘(i) the food; Section 402 of the Federal Food, Drug, and tive State Research Education and Exten- ‘‘(ii) the countries of origin of the food; and Cosmetic Act (21 U.S.C. 342), as amended by sion Service, programs to protect the food ‘‘(iii) the quantity to be imported; and section 532(b), is further amended by adding supply of the United States by conducting ‘‘(B) includes such other information as at the end the following: activities to— the Secretary of Health and Human Services ‘‘(i) If it is an article of food imported or (1) enhance the capability of the Service to may require by regulation. offered for import into the United States and respond immediately to the needs of Federal ‘‘(2) REFUSAL OF ADMISSION.—If documenta- the article of food has previously been re- regulatory agencies involved in protecting tion is not provided as required by paragraph fused admission under section 801(a), unless the food and agricultural system;

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00236 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S14009 (2) continue existing partnerships with in- SEC. 206. CONGRESSIONAL NOTIFICATION OF (1) to allow the Department of State to ac- stitutions of higher education (including SMALL ARMS AND LIGHT WEAPONS cess information on controlled exports made partnerships with 3 institutions of higher LICENSE APPROVALS; ANNUAL RE- through the United States Postal Service; education that are national centers for coun- PORTS. and termeasures against agricultural bioter- (a) CONGRESSIONAL NOTIFICATION OF EXPORT (2) to adjust the Automated Export System rorism and 7 additional institutions with ex- LICENSE APPROVALS.—Section 36(c) of the to parallel information currently collected isting programs related to bioterrorism) to Arms Export Control Act (22 U.S.C. 2776(c)) by the Department of State. is amended by inserting ‘‘(or, in the case of help form stable, long-term programs of re- (d) SECRETARY OF TREASURY FUNCTIONS.— a defense article that is a firearm controlled search, development, and evaluation of op- Section 303 of title 13, United States Code, is under category I of the United States Muni- tions to enhance the biosecurity of United amended by striking ‘‘, other than by mail,’’. tions List, $1,000,000 or more)’’ after States agriculture; (e) FILING EXPORT INFORMATION, DELAYED (3) strengthen linkages with the intel- ‘‘$50,000,000 or more’’. (b) REPORT.—Not later than six months FILINGS, PENALTIES FOR FAILURE TO FILE.— ligence community to better identify re- after the date of enactment of this Act, and Section 304 of title 13, United States Code, is search needs and evaluate acquired mate- annually thereafter, the Secretary of State amended— rials; shall submit an unclassified report to the ap- (1) in subsection (a)— (4) expand Service involvement with inter- propriate congressional committees on the (A) in the first sentence, by striking ‘‘the national organizations dealing with plant numbers, range, and findings of end-use mon- penal sum of $1,000’’ and inserting ‘‘a penal and animal disease control; and itoring of United States transfers in small sum of $10,000’’; and (5) otherwise expand the capacity of the arms and light weapons. (B) in the third sentence, by striking ‘‘a Service to protect against the threat of bio- (c) ANNUAL MILITARY ASSISTANCE RE- penalty not to exceed $100 for each day’s de- terrorism. PORTS.—Section 655(b)(3) of the Foreign As- linquency beyond the prescribed period, but (b) AUTHORIZATION OF APPROPRIATIONS.— sistance Act of 1961 (22 U.S.C. 2415(b)(3)) is not more than $1,000,’’ and inserting ‘‘a pen- There is authorized to be appropriated to alty not to exceed $1,000 for each day’s delin- carry out this section, $190,000,000 for fiscal amended by inserting before the period at the end the following: ‘‘, including, in the quency beyond the prescribed period, but not year 2002, and such sums as may be necessary more than $10,000 per violation’’; for each subsequent fiscal year. case of defense articles that are firearms controlled under category I of the United (2) by redesignating subsection (b) as sub- section (c); and SA 2693. Mr. REID (for Mr. BROWN- States Munitions List, a statement of the aggregate dollar value and quantity of semi- (3) by inserting after subsection (a) the fol- BACK) proposed an amendment to the lowing: bill S. Res. 194, congratulating the peo- automatic assault weapons, or related equip- ment, the manufacture, transfer, or posses- ‘‘(b) Any person, other than a person de- ple and government on the tenth anni- sion of which is unlawful under section 922 of scribed in subsection (a), required to submit versary of the independence of the Re- title 18, United States Code, that were li- export information, shall file such informa- public of Kazakhstan; as follows: censed for export during the period covered tion in accordance with any rule, regulation, On page 2, delete the fifth whereas clause, by the report’’. or order issued pursuant to this chapter. In and insert: ‘‘Whereas Kazakhstan, under the (d) ANNUAL REPORT ON ARMS BROKERING.— the event any such information or reports leadership of President Nursultan Nazarbaev, Not later than six months after the date of are not filed within such prescribed period, has cooperated with the United States on na- enactment of this Act, and annually there- the Secretary of Commerce (and officers of tional security concerns, including combat- after, the Secretary of State shall submit a the Department of Commerce designated by ting international terrorism, nuclear pro- report to the appropriate committees of Con- the Secretary) may impose a civil penalty liferation, international crime, and narcotics gress on activities of registered arms bro- not to exceed $1,000 for each day’s delin- trafficking; and’’; kers, including violations of the Arms Ex- quency beyond the prescribed period, but not Delete the final whereas clause; and port Control Act. more than $10,000 per violation.’’. On page 3, delete lines 7–9, and insert the (e) ANNUAL REPORT ON INVESTIGATIONS OF (f) ADDITIONAL PENALTIES.— following: ‘‘United States on matters of na- THE BUREAU OF ALCOHOL, TOBACCO AND FIRE- (1) IN GENERAL.—Section 305 of title 13, tional security, including the war against ARMS.—Not later than six months after the United States Code, is amended to read as terrorism.’’ date of enactment of this Act, and annually follows: thereafter, the Secretary of the Treasury SA 2694. Mr. REID (for Mr. SMITH of ‘‘SEC. 305. PENALTIES FOR UNLAWFUL EXPORT shall submit a report to the appropriate INFORMATION ACTIVITIES. New Hampshire) proposed an amend- committees of Congress on investigations ‘‘(a) CRIMINAL PENALTIES.—(1) Any person ment to the bill S. 990, to amend the and other efforts undertaken by the Bureau who knowingly fails to file or knowingly Pittman-Robertson Wildlife Restora- of Alcohol, Tobacco and Firearms (including submits false or misleading export informa- cooperation with other agencies) to stop tion Act to improve the provisions re- tion through the Shippers Export Declara- United States-source weapons from being lating to wildlife conservation and res- tion (SED) (or any successor document) or used in terrorist acts and international toration programs, and for other pur- the Automated Export System (AES) shall crime. poses; as follows: be subject to a fine not to exceed $10,000 per On page 66, strike lines 1 through 12, and violation or imprisonment for not more than On page 49, strike lines 7 through 14 and in- insert the following: sert the following: 5 years, or both. (1) Section 3 of the Pittman-Robertson SEC. 404. IMPROVEMENTS TO THE AUTOMATED EXPORT SYSTEM. ‘‘(2) Any person who knowingly reports any Wildlife Restoration Act (16 U.S.C. 669b) is (a) CONTRIBUTION TO THE AUTOMATED EX- information on or uses the SED or the AES amended— PORT SYSTEM.—Not less than $250,000 of the to further any illegal activity shall be sub- (A) in the first sentence of subsection ject to a fine not to exceed $10,000 per viola- (a)(1)— amounts provided under section 302 for each fiscal year shall be available for the purpose tion or imprisonment for not more than 5 (i) by inserting ‘‘(other than the Account)’’ years, or both. after ‘‘wildlife restoration fund’’; and of— ‘‘(3) Any person who is convicted under (ii) by inserting before the period at the (1) providing the Department of State with this subsection shall, in addition to any end the following: ‘‘(other than sections 4(d) full access to the Automated Export System; other penalty, be subject to forfeiting to the and 12)’’; and (2) ensuring that the system is modified to (B) in subsection (b), by inserting ‘‘(other meet the needs of the Department of State, United States— than the Account)’’ after ‘‘the fund’’ each if such modifications are consistent with the ‘‘(A) any of that person’s interest in, secu- place it appears. needs of other United States Government rity of, claim against, or property or con- On page 74, line 11, insert ‘‘(other than an agencies; and tractual rights of any kind in the goods or incidental taking statement with respect to (3) providing operational support. tangible items that were the subject of the a species recovery agreement entered into by (b) MANDATORY FILING.—The Secretary of violation; the Secretary under subsection (c))’’ before Commerce, with the concurrence of the Sec- ‘‘(B) any of that person’s interest in, secu- the semicolon. retary of State and the Secretary of Treas- rity of, claim against, or property or con- ury, shall publish regulations in the Federal tractual rights of any kind in tangible prop- SA 2695. Mr. REID (for Mr. BIDEN (for Register to require, upon the effective date erty that was used in the export or attempt himself and Mr. HELMS)) proposed an of those regulations, that all persons who are to export that was the subject of the viola- amendment to the bill S. 1803, to au- required to file export information under tion; and thorize appropriations under the Arms chapter 9 of title 13, United States Code, to ‘‘(C) any of that person’s property consti- tuting, or derived from, any proceeds ob- Export Control Act and the Foreign file such information through the Auto- mated Export System. tained directly or indirectly as a result of Assistance Act of 1961 for security as- (c) REQUIREMENT FOR INFORMATION SHAR- the violation. sistance for fiscal years 2002 and 2003, ING.—The Secretary shall conclude an infor- ‘‘(b) CIVIL PENALTIES.—The Secretary (and and for other purposes; as follows: mation-sharing arrangement with the heads officers of the Department of Commerce spe- On page 10, between lines 11 and 12, insert of United States Customs Service and the cifically designated by the Secretary) may the following new section: Census Bureau— impose a civil penalty not to exceed $10,000

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00237 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S14010 CONGRESSIONAL RECORD — SENATE December 20, 2001 per violation on any person violating the (which is the Taiwan instrumentality des- (B) in paragraph (2)— provisions of this chapter or any rule, regu- ignated pursuant to section 10(a) of the Tai- (i) in the matter preceding subparagraph lation, or order issued thereunder, except as wan Relations Act) the ‘‘Kidd’’ class guided (A), by striking ‘‘90 days’’ and inserting ‘‘30 provided in section 304. Such penalty may be missile destroyers Kidd (DDG 993), Callaghan days’’; in addition to any other penalty imposed by (DDG 994), Scott (DDG 995), and Chandler (ii) in subparagraph (A), by striking ‘‘1,000’’ law. (DDG 996). The transfer of these 4 ‘‘Kidd’’ and inserting ‘‘1,200’’; and ‘‘(c) CIVIL PENALTY PROCEDURE.—(1) When class guided missile destroyers shall be on a (iii) in subparagraph (B), by striking ‘‘2,500 a civil penalty is sought for a violation of sale basis under section 21 of the Arms Ex- Boys and Girls Clubs of America facilities in this section or of section 304, the charged port Control Act (22 U.S.C. 2761). operation before January 1, 2000’’ and insert- party is entitled to receive a formal com- Starting on page 24, line 14, strike all that ing ‘‘4,000 Boys and Girls Clubs of America plaint specifying the charges and, at his or follows through line 23 of page 25. facilities in operation before January 1, her request, to contest the charges in a hear- Strike page 13, lines 5-14. 2007’’; and ing before an administrative law judge. Any On line 4, page 78, delete ‘‘not less than’’ (3) in subsection (e), by striking paragraph such hearing shall be conducted in accord- and on line 5, page 78, delete ‘‘shall’’ and in- (1) and inserting the following: ance with sections 556 and 557 of title 5, sert in lieu thereof ‘‘may’’. ‘‘(1) IN GENERAL.—There are authorized to United States Code. On line 7, page 21, delete ‘‘and 2003’’ and de- be appropriated to carry out this section— ‘‘(2) If any person fails to pay a civil pen- lete lines 9 through 15 on page 21. ‘‘(A) $70,000,000 for fiscal year 2002; alty imposed under this chapter, the Sec- ‘‘(B) $80,000,000 for fiscal year 2003; retary may ask the Attorney General to SA 2696. Mr. REID (for Mrs. CLINTON) ‘‘(C) $80,000,000 for fiscal year 2004; commence a civil action in an appropriate proposed an amendment to the bill S. ‘‘(D) $80,000,000 for fiscal year 2005; and district court of the United States to recover 1637, to waive certain limitations in ‘‘(E) $80,000,000 for fiscal year 2006.’’. the amount imposed (plus interest at cur- the case of use of the emergency fund TITLE II—DRUG ABUSE EDUCATION, PRE- rently prevailing rates from the date of the authorized by section 125 of title 23, VENTION, AND TREATMENT ACT OF 2001 final order). No such action may be com- United States Code, to pay the costs of menced more than 5 years after the order im- SEC. 2001. SHORT TITLE. projects in response to the attack on This title may be cited as the ‘‘Drug Abuse posing the civil penalty becomes final. In the World Trade Center in New York such action, the validity, amount, and appro- Education, Prevention, and Treatment Act priateness of such penalty shall not be sub- City that occurred on September 11, of 2001’’. ject to review. 2001; as follows: Subtitle A—Drug-Free Prisons and Jails ‘‘(3) The Secretary may remit or mitigate On page 2, strike lines 10 through 14 and in- SEC. 2101. DRUG-FREE PRISONS AND JAILS IN- any penalties imposed under paragraph (1) if, sert the following: CENTIVE GRANTS. in his or her opinion— ‘‘shall be 100 percent; and (a) IN GENERAL.—Subtitle A of title II of ‘‘(A) the penalties were incurred without ‘‘(2) notwithstanding section 125(d)(1) of the Violent Crime Control and Law Enforce- willful negligence or fraud; or that’’. ment Act of 1994 (42 U.S.C. 13701 et seq.) is ‘‘(B) other circumstances exist that justify amended— a remission or mitigation. SA 2697. Mr. REID (for Mr. LEAHY (1) by redesignating section 20110 as section ‘‘(4) If, pursuant to section 306, the Sec- (for himself, Mr. KENNEDY, and Mr. 20111; and retary delegates functions under this section HATCH)) proposed an amendment to the (2) by inserting after section 20109 the fol- to another agency, the provisions of law of bill H.R. 2215, to authorize appropria- lowing: that agency relating to penalty assessment, tions for the Department of Justice for ‘‘SEC. 20110. DRUG-FREE PRISONS AND JAILS remission or mitigation of such penalties, BONUS GRANTS. collection of such penalties, and limitations fiscal year 2002, and for other purposes; as follows: ‘‘(a) IN GENERAL.—The Attorney General of actions and compromise of claims, shall shall make incentive grants in accordance apply. On page 51, after line 4, insert the fol- with this section to eligible States, units of ‘‘(5) Any amount paid in satisfaction of a lowing: local government, and Indian tribes, in order civil penalty imposed under this section or DIVISION A—21ST CENTURY DEPARTMENT to encourage the establishment and mainte- section 304 shall be deposited into the gen- OF JUSTICE APPROPRIATIONS AUTHOR- nance of drug-free prisons and jails. eral fund of the Treasury and credited as IZATION ACT ‘‘(b) RESERVATION OF FUNDS.—Notwith- miscellaneous receipts. On page 51, line 6, strike ‘‘This Act’’ and standing any other provision of this subtitle, ‘‘(d) ENFORCEMENT.—(1) The Secretary of insert ‘‘This division’’. in each fiscal year, before making the alloca- Commerce may designate officers or employ- On page 52, beginning with line 4, strike all tions under sections 20106 and 20108(a)(2) or ees of the Office of Export Enforcement to through page 57, line 12. the reservation under section 20109, the At- conduct investigations pursuant to this Redesignate sections 102 and 103 as sec- torney General shall reserve 10 percent of chapter. In conducting such investigations, tions 101 and 102, respectively. the amount made available to carry out this those officers or employees may, to the ex- On page 57, line 23, strike ‘‘may’’ and insert subtitle for grants under this section. tent necessary or appropriate to the enforce- ‘‘shall’’. ‘‘(c) ELIGIBILITY.— ment of this chapter, exercise such authori- On page 80, lines 22, strike all through page ‘‘(1) IN GENERAL.—To be eligible to receive ties as are conferred upon them by other 81, line 22. a grant under this section, a State, unit of laws of the United States, subject to policies On page 86, lines 15 and 16, strike ‘‘OF AP- local government, or Indian tribe shall dem- and procedures approved by the Attorney PROPRIATIONS’’ and insert ‘‘WITHIN THE onstrate to the Attorney General that the General. DEPARTMENT OF JUSTICE’’. State, unit of local government, or Indian ‘‘(2) The Commissioner of Customs may On page 87, line 24, after ‘‘contract’’ insert tribe— designate officers or employees of the Cus- ‘‘over $5,000,000’’. ‘‘(A) meets the requirements of section On page 89, line 24, after ‘‘period’’ and in- toms Service to enforce the provisions of 20103(a); and sert ‘‘and the paragraph following’’. this chapter, or to conduct investigations ‘‘(B) has established, or, within 18 months On page 89, line 25, strike ‘‘after’’. pursuant to this chapter. after the initial submission of an application ‘‘(e) REGULATIONS.—The Secretary of Com- On page 97, beginning with line 1, strike all this section will implement, a program or merce shall promulgate regulations for the through line 6. policy of drug-free prisons and jails for cor- implementation and enforcement of this sec- At the end of the bill add the following: rectional and detention facilities, including tion. DIVISION B—MISCELLANEOUS DIVISION juvenile facilities, in its jurisdiction. ‘‘(f) EXEMPTION.—The criminal fines pro- TITLE I—BOYS AND GIRLS CLUBS OF ‘‘(2) CONTENTS OF PROGRAM OR POLICY.—The vided for in this section are exempt from the AMERICA drug-free prisons and jails program or policy provisions of section 3571 of title 18, United SEC. 1101. BOYS AND GIRLS CLUBS OF AMERICA. under paragraph (1)(B)— States Code.’’. Section 401 of the Economic Espionage Act ‘‘(A) shall include— (2) CLERICAL AMENDMENT.—The table of of 1966 (42 U.S.C. 13751 note) is amended— ‘‘(i) a zero-tolerance policy for drug use or sections at the beginning of chapter 9 of title (1) in subsection (a)(2)— presence in State, unit of local government, 13, United States Code, is amended by strik- (A) by striking ‘‘1,000’’ and inserting or Indian tribe facilities, including random ing the item relating to section 305 and in- ‘‘1,200’’; and routine sweeps and inspections for drugs, serting the following: (B) by striking ‘‘2,500’’ and inserting random and routine drug tests of inmates, ‘‘305. Penalties for unlawful export informa- ‘‘4,000’’; and and improved screening for drugs and other tion activities.’’. (C) by striking ‘‘December 31, 1999’’ and in- contraband of prison visitors and prisoner On page 75, strike lines 1 through 24. serting ‘‘December 31, 2006, serving not less mail; On page 83, between lines 17 and 18, insert than 6,000,000 young people’’; ‘‘(ii) establishment and enforcement of the following: (2) in subsection (c)— penalties, including prison disciplinary ac- (4) TAIWAN.—The President is authorized to (A) in paragraph (1), by striking ‘‘1997, 1998, tions and criminal prosecution for the intro- transfer to the Taipei Economic and Cultural 1999, 2000, and 2001’’ and inserting ‘‘2002, 2003, duction, possession, or use of drugs in any Representative Office in the United States 2004, 2005, and 2006’’; and prison or jail;

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‘‘(iii) the implementation of residential riod of not less than 3 months, in an area of ‘‘(d) REVIEW OF APPLICATIONS.— drug treatment programs that are effective a correctional facility set apart from the ‘‘(1) IN GENERAL.—Upon receipt of an appli- and science-based; and general population of the correctional facil- cation under subsection (c), the State shall— ‘‘(iv) drug testing of inmates upon intake ity, if those activities are— ‘‘(A) review the application to ensure that and upon release from incarceration as ap- ‘‘(A) directed at the substance abuse prob- the application, and the jail-based residen- propriate; and lems of prisoners; and tial substance abuse treatment program for ‘‘(B) may include a system of incentives for ‘‘(B) intended to develop the cognitive, be- which a grant under this section is sought, prisoners to participate in counter-drug pro- havioral, and other skills of prisoners in meet the requirements of this section; and grams such as drug treatment and drug-free order to address the substance abuse and re- ‘‘(B) if so, make an affirmative finding in wings with greater privileges, except that in- lated problems of prisoners. writing that the jail-based substance abuse centives under this paragraph may not in- ‘‘(2) The term ‘local correctional facility’ treatment program for which assistance is clude the early release of any prisoner con- means any correctional facility operated by sought meets the requirements of this sec- victed of a crime of violence that is not part a State or unit of local government. tion. of a policy of a State concerning good-time ‘‘(b) AUTHORIZATION.— ‘‘(2) APPROVAL.—Based on the review con- credits or criteria for the granting of super- ‘‘(1) IN GENERAL.—At least 10 percent of the ducted under paragraph (1), not later than 90 vised release. total amount made available to a State days after the date on which an application ‘‘(d) APPLICATION.—In order to be eligible under section 1904(a) for any fiscal year shall is submitted under subsection (c), the State to receive a grant under this section, a be used by the State to make grants to local shall— State, unit of local government, or Indian correctional facilities in the State, provided ‘‘(A) approve the application, disapprove tribe shall submit to the Attorney General the State includes local correctional facili- the application, or request a continued eval- an application, in such form and containing ties, for the purpose of assisting jail-based uation of the application for an additional such information, including rates of positive substance abuse treatment programs that period of 90 days; and drug tests among inmates upon intake and are effective and science-based established ‘‘(B) notify the applicant of the action release from incarceration, as the Attorney by those local correctional facilities. taken under subparagraph (A) and, with re- General may reasonably require. ‘‘(2) FEDERAL SHARE.—The Federal share of spect to any denial of an application under a grant made by a State under this section ‘‘(e) USE OF FUNDS.—Amounts received by subparagraph (A), afford the applicant an op- a State, unit of local government, or Indian to a local correctional facility may not ex- portunity for reconsideration. ceed 75 percent of the total cost of the jail- tribe from a grant under this section may be ‘‘(3) ELIGIBILITY FOR PREFERENCE WITH based substance abuse treatment program used— AFTERCARE COMPONENT.— described in the application submitted under ‘‘(1) to implement the program under sub- ‘‘(A) IN GENERAL.—In making grants under subsection (c) for the fiscal year for which section (c)(2); or this section, a State shall give preference to the program receives assistance under this ‘‘(2) for any other purpose permitted by applications from local correctional facili- section. this subtitle. ties that ensure that each participant in the ‘‘(c) APPLICATIONS.— ‘‘(f) ALLOCATION OF FUNDS.—Grants award- jail-based substance abuse treatment pro- ‘‘(1) IN GENERAL.—To be eligible to receive ed under this section shall be in addition to a grant from a State under this section for a gram for which a grant under this section is any other grants a State, unit of local gov- jail-based substance abuse treatment pro- sought, is required to participate in an ernment, or Indian tribe may be eligible to gram, the chief executive of a local correc- aftercare services program that meets the receive under this subtitle or under part S of tional facility shall submit to the State, in requirements of subparagraph (B), for a pe- title I of the Omnibus Crime Control and such form and containing such information riod of not less than 1 year following the ear- Safe Streets Act of 1968 (42 U.S.C. 3796ff et as the State may reasonably require, an ap- lier of— seq.). plication that meets the requirements of ‘‘(i) the date on which the participant com- ‘‘(g) MINIMUM ALLOCATION.—Unless all eli- paragraph (2). pletes the jail-based substance abuse treat- gible applications submitted by any State or ‘‘(2) APPLICATION REQUIREMENTS.—Each ap- ment program; or unit of local government within such State plication submitted under paragraph (1) shall ‘‘(ii) the date on which the participant is for a grant under this section have been include— released from the correctional facility at the funded, such State, together with grantees ‘‘(A) with respect to the jail-based sub- end of the participant’s sentence or is re- within the State (other than Indian tribes), stance abuse treatment program for which leased on parole. shall be allocated in each fiscal year under assistance is sought, a description of the pro- ‘‘(B) AFTERCARE SERVICES PROGRAM RE- this section not less than 0.75 percent of the gram and a written certification that the QUIREMENTS.—For purposes of subparagraph total amount appropriated in the fiscal year local correctional facility will— (A), an aftercare services program meets the for grants pursuant to this section. ‘‘(i) coordinate the design and implementa- requirements of this paragraph if the pro- ‘‘(h) AUTHORIZATION OF APPROPRIATIONS.— tion of the program between local correc- gram— In addition to amounts allocated under this tional facility representatives and the appro- ‘‘(i) in selecting individuals for participa- section, there are authorized to be appro- priate State and local alcohol and substance tion in the program, gives priority to indi- priated to carry out this section such sums abuse agencies; viduals who have completed a jail-based sub- as are necessary for each of the fiscal years ‘‘(ii) implement (or continue to require) stance abuse treatment program; 2002, 2003, and 2004.’’. urinalysis or other proven reliable forms of ‘‘(ii) requires each participant in the pro- SEC. 2102. JAIL-BASED SUBSTANCE ABUSE substance abuse testing of individuals par- gram to submit to periodic substance abuse TREATMENT PROGRAMS. ticipating in the program, including the test- testing; and (a) USE OF RESIDENTIAL SUBSTANCE ABUSE ing of individuals released from the jail- ‘‘(iii) involves the coordination between TREATMENT GRANTS TO PROVIDE AFTERCARE based substance abuse treatment program the jail-based substance abuse treatment SERVICES.—Section 1902 of part S of title I of who remain in the custody of the local cor- program and other human service and reha- the Omnibus Crime Control and Safe Streets rectional facility; and bilitation programs that may assist in the Act of 1968 (42 U.S.C. 3796ff–1) is amended by ‘‘(iii) carry out the program in accordance rehabilitation of program participants, such adding at the end the following: with guidelines, which shall be established as— ‘‘(f) USE OF GRANT AMOUNTS FOR NONRESI- by the State, in order to guarantee each par- ‘‘(I) educational and job training programs; DENTIAL AFTERCARE SERVICES.—A State may ticipant in the program access to consistent, ‘‘(II) parole supervision programs; use amounts received under this part to pro- continual care if transferred to a different ‘‘(III) half-way house programs; and vide nonresidential substance abuse treat- local correctional facility within the State; ‘‘(IV) participation in self-help and peer ment aftercare services for inmates or ‘‘(B) written assurances that Federal funds group programs; and former inmates that meet the requirements received by the local correctional facility ‘‘(iv) assists in placing jail-based substance of subsection (c), if the chief executive offi- from the State under this section will be abuse treatment program participants with cer of the State certifies to the Attorney used to supplement, and not to supplant, appropriate community substance abuse General that the State is providing, and will non-Federal funds that would otherwise be treatment facilities upon release from the continue to provide, an adequate level of res- available for jail-based substance abuse correctional facility at the end of a sentence idential treatment services.’’. treatment programs assisted with amounts or on parole. (b) JAIL-BASED SUBSTANCE ABUSE TREAT- made available to the local correctional fa- ‘‘(e) COORDINATION AND CONSULTATION.— MENT.—Part S of title I of the Omnibus cility under this section; and ‘‘(1) COORDINATION.—Each State that Crime Control and Safe Streets Act of 1968 ‘‘(C) a description of the manner in which makes 1 or more grants under this section in (42 U.S.C. 3796ff et seq.) is amended by adding amounts received by the local correctional any fiscal year shall, to the maximum extent at the end the following: facility from the State under this section practicable, implement a statewide commu- ‘‘SEC. 1906. JAIL-BASED SUBSTANCE ABUSE will be coordinated with Federal assistance nications network with the capacity to track TREATMENT. for substance abuse treatment and aftercare the participants in jail-based substance ‘‘(a) DEFINITIONS.—In this section: services provided to the local correctional abuse treatment programs established by ‘‘(1) The term ‘jail-based substance abuse facility by the Substance Abuse and Mental local correctional facilities in the State as treatment program’ means a course of indi- Health Services Administration of the De- those participants move between local cor- vidual and group activities, lasting for a pe- partment of Health and Human Services. rectional facilities within the State.

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‘‘(2) CONSULTATION.—Each State described (e) USE OF RESIDENTIAL SUBSTANCE ABUSE Subtitle B—Treatment and Prevention in paragraph (1) shall consult with the Attor- TREATMENT GRANTS TO PROVIDE FOR SERV- SEC. 2201. DRUG TREATMENT ALTERNATIVE TO ney General and the Secretary of Health and ICES DURING AND AFTER INCARCERATION.— PRISON PROGRAMS ADMINISTERED Human Services to ensure that each jail- Section 1901 of title I of the Omnibus Crime BY STATE OR LOCAL PROSECUTORS. based substance abuse treatment program Control and Safe Streets Act of 1968 (42 (a) PROSECUTION DRUG TREATMENT ALTER- assisted with a grant made by the State U.S.C. 3796ff) is amended by adding at the NATIVE TO PRISON PROGRAMS.—Title I of the under this section incorporates applicable end the following: Omnibus Crime Control and Safe Streets Act components of comprehensive approaches, ‘‘(c) ADDITIONAL USE OF FUNDS.—States of 1968 (42 U.S.C. 3711 et seq.) is amended by including relapse prevention and aftercare that demonstrate that they have existing in- adding at the end the following new part: prison drug treatment programs that are in services. ‘‘PART CC—PROSECUTION DRUG TREAT- compliance with Federal requirements may ‘‘(f) USE OF GRANT AMOUNTS.— MENT ALTERNATIVE TO PRISON PRO- ‘‘(1) IN GENERAL.—Each local correctional use funds awarded under this part for treat- ment and sanctions both during incarcer- GRAMS facility that receives a grant under this sec- ‘‘SEC. 2901. PILOT PROGRAM AUTHORIZED. tion shall use the grant amount solely for ation and after release, provided that no ‘‘(a) IN GENERAL.—The Attorney General the purpose of carrying out the jail-based more than 25 percent of funds be spent on aftercare services. may make grants to State or local prosecu- substance abuse treatment program de- ‘‘(d) CONSULTATION.—The Attorney General tors for the purpose of developing, imple- scribed in the application submitted under shall consult with the Secretary of Health menting, or expanding drug treatment alter- subsection (c). and Human Services to ensure that programs native to prison programs that comply with ‘‘(2) ADMINISTRATION.—Each local correc- of substance abuse treatment and related the requirements of this part. tional facility that receives a grant under services for State prisoners carried out under ‘‘(b) USE OF FUNDS.—A State or local pros- this section shall carry out all activities re- this part incorporate applicable components ecutor who receives a grant under this part lating to the administration of the grant of existing, comprehensive approaches in- shall use amounts provided under the grant amount, including reviewing the manner in cluding relapse prevention and aftercare to develop, implement, or expand the drug which the amount is expended, processing, services that have been shown to be effica- treatment alternative to prison program for monitoring the progress of the program as- cious and incorporate evidence-based prin- which the grant was made, which may in- sisted, financial reporting, technical assist- ciples of effective substance abuse treatment clude payment of the following expenses: ance, grant adjustments, accounting, audit- as determined by the Secretary of Health ‘‘(1) Salaries, personnel costs, equipment ing, and fund disbursement. and Human Services.’’. costs, and other costs directly related to the ‘‘(3) RESTRICTION.—A local correctional fa- (f) REAUTHORIZATION.—Paragraph (17) of operation of the program, including the en- cility may not use any amount of a grant section 1001(a) of title I of the Omnibus forcement unit. under this section for land acquisition, a Crime Control and Safe Streets Act of 1968 ‘‘(2) Payments to licensed substance abuse construction project, or facility renovations. (42 U.S.C. 3793(a)(17)) is amended to read as treatment providers for providing treatment ‘‘(g) REPORTING REQUIREMENT; PERFORM- follows: to offenders participating in the program for ANCE REVIEW.— ‘‘(17) There are authorized to be appro- which the grant was made, including ‘‘(1) REPORTING REQUIREMENT.—Not later priated to carry out part S such sums as are aftercare supervision, vocational training, than March 1 each year, each local correc- necessary for fiscal year 2002 and such sums education, and job placement. tional facility that receives a grant under as may be necessary for fiscal years 2003 and ‘‘(3) Payments to public and nonprofit pri- this section shall submit to the Attorney 2004.’’. vate entities for providing treatment to of- (g) SUBSTANCE ABUSE TREATMENT IN FED- General, through the State, a description fenders participating in the program for and an evaluation report of the jail-based ERAL PRISONS REAUTHORIZATION.—Section 3621(e) of title 18, United States Code, is which the grant was made. substance abuse treatment program carried ‘‘(c) FEDERAL SHARE.—The Federal share of amended— out by the local correctional facility with a grant under this part shall not exceed 75 (1) in paragraph (4), by striking subpara- the grant amount, in such form and con- percent of the cost of the program. graph (E) and inserting the following: taining such information as the Attorney ‘‘(d) SUPPLEMENT AND NOT SUPPLANT.— ‘‘(E) such sums as are necessary for fiscal General may reasonably require. Grant amounts received under this part shall year 2002; and ‘‘(2) PERFORMANCE REVIEW.—The Attorney be used to supplement, and not supplant, ‘‘(F) such sums as are necessary for fiscal General shall conduct an annual review of non-Federal funds that would otherwise be year 2003.’’; and each jail-based substance abuse treatment available for activities funded under this (2) in paragraph (5)— program assisted under this section, in order part. to verify the compliance of local correc- (A) in subparagraph (B), by striking ‘‘and’’ at the end; ‘‘SEC. 2902. PROGRAM REQUIREMENTS. tional facilities with the requirements of ‘‘A drug treatment alternative to prison this section. (B) in subparagraph (C), by striking the pe- riod and inserting ‘‘; and’’; and program with respect to which a grant is ‘‘(h) MINIMUM ALLOCATION.—Unless all eli- made under this part shall comply with the gible applications submitted by any State or (C) by adding at the end the following: ‘‘(D) the term ‘appropriate substance abuse following requirements: unit of local government within such State ‘‘(1) A State or local prosecutor shall ad- for a grant under this section have been treatment’ means treatment in a program that has been shown to be efficacious and in- minister the program. funded, such State, together with grantees ‘‘(2) An eligible offender may participate in within the State (other than Indian tribes), corporates evidence-based principles of effec- tive substance abuse treatment as deter- the program only with the consent of the shall be allocated in each fiscal year under State or local prosecutor. this section not less than 0.75 percent of the mined by the Secretary of Health and Human Services.’’. ‘‘(3) Each eligible offender who participates total amount appropriated in the fiscal year in the program shall, as an alternative to in- for grants pursuant to this section.’’. SEC. 2103. MANDATORY REVOCATION OF PROBA- TION AND SUPERVISED RELEASE carceration, be sentenced to or placed with a (c) ELIGIBILITY FOR SUBSTANCE ABUSE FOR FAILING A DRUG TEST. long-term substance abuse treatment pro- TREATMENT.—Part S of title I of the Omni- (a) REVOCATION OF PROBATION.—Section vider that is licensed or certified under State bus Crime Control and Safe Streets Act of 3565(b) of title 18, United States Code, is or local law. 1968 (42 U.S.C. 3796ff et seq.), as amended by amended— ‘‘(4) Each eligible offender who participates subsection (b), is further amended by adding (1) in paragraph (2), by striking ‘‘or’’ after in the program shall serve a sentence of im- at the end the following: the semicolon; prisonment with respect to the underlying ‘‘SEC. 1907. DEFINITIONS. (2) in paragraph (3), by striking ‘‘(4),’’ and crime if that offender does not successfully ‘‘In this part: inserting ‘‘(4); or’’; and complete treatment with the residential sub- ‘‘(1) The term ‘inmate’ means an adult or a (3) by adding after paragraph (3) the fol- stance abuse provider. juvenile who is incarcerated or detained in lowing: ‘‘(5) Each substance abuse provider treat- any State or local correctional facility. ‘‘(4) as a part of drug testing, tests positive ing an offender under the program shall— ‘‘(2) The term ‘correctional facility’ in- for illegal controlled substances more than 3 ‘‘(A) make periodic reports of the progress cludes a secure detention facility and a se- times over the course of 1 year;’’. of treatment of that offender to the State or cure correctional facility (as those terms are (b) REVOCATION OF SUPERVISED RELEASE.— local prosecutor carrying out the program defined in section 103 of the Juvenile Justice Section 3583(g) of title 18, United States and to the appropriate court in which the de- and Delinquency Prevention Act of 1974 (42 Code, is amended— fendant was convicted; and U.S.C. 5603)).’’. (1) in paragraph (2), by striking ‘‘or’’ after ‘‘(B) notify that prosecutor and that court (d) CLERICAL AMENDMENT.—The table of the semicolon; if that offender absconds from the facility of contents for title I of the Omnibus Crime (2) in paragraph (3), by inserting ‘‘or’’ after the treatment provider or otherwise violates Control and Safe Streets Act of 1968 (42 the semicolon; and the terms and conditions of the program. U.S.C. 3711 et seq.) is amended in the matter (3) by adding after paragraph (3) the fol- ‘‘(6) The program shall have an enforce- relating to part S by adding at the end the lowing: ment unit comprised of law enforcement offi- following: ‘‘(4) as a part of drug testing, tests positive cers under the supervision of the State or ‘‘1906. Jail-based substance abuse treatment. for illegal controlled substances more than 3 local prosecutor carrying out the program, ‘‘1907. Definitions.’’. times over the course of 1 year;’’. the duties of which shall include verifying an

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00240 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S14013 offender’s addresses and other contacts, and, submit to the Committees on the Judiciary treatment, counseling, and other related and if necessary, locating, apprehending, and ar- of the House of Representatives and the Sen- necessary expenses not covered by other Fed- resting an offender who has absconded from ate a report regarding mandatory minimum eral, State, Indian tribal, and local sources the facility of a substance abuse treatment sentences for controlled substance offenses, of funding that would otherwise be available. provider or otherwise violated the terms and which shall include an analysis of— ‘‘(c) CONTINUED AVAILABILITY OF GRANT conditions of the program, and returning (1) whether such sentences may have a dis- FUNDS.—Amounts made available under this such offender to court for sentence on the proportionate impact on ethnic or racial part shall remain available until expended. underlying crime. groups; ‘‘SEC. 2928. APPLICATIONS. ‘‘SEC. 2903. APPLICATIONS. (2) the effectiveness of such sentences in ‘‘(a) IN GENERAL.—In order to receive a ‘‘(a) IN GENERAL.—To request a grant reducing drug-related crime by violent of- grant under this part, the chief executive or under this part, a State or local prosecutor fenders; the chief justice of a State, or the chief exec- shall submit an application to the Attorney (3) the effectiveness of basing sentences on utive or judge of a unit of local government General in such form and containing such in- drug quantities and the feasibility of poten- or Indian tribe shall submit an application formation as the Attorney General may rea- tial alternatives; and to the Attorney General in such form and sonably require. (4) the frequency and appropriateness of containing such information as the Attorney ‘‘(b) CERTIFICATIONS.—Each such applica- the use of such sentences for nonviolent of- General may reasonably require. tion shall contain the certification of the fenders in contrast with other approaches ‘‘(b) CONTENTS.—In addition to any other State or local prosecutor that the program such as drug treatment programs. requirements that may be specified by the for which the grant is requested shall meet SEC. 2202. JUVENILE SUBSTANCE ABUSE COURTS. Attorney General, each application for a each of the requirements of this part. (a) GRANT AUTHORITY.—Title I of the Omni- grant under this part shall— ‘‘SEC. 2904. GEOGRAPHIC DISTRIBUTION. bus Crime Control and Safe Streets Act of ‘‘(1) include a long-term strategy and de- ‘‘The Attorney General shall ensure that, 1968 (42 U.S.C. 3711 et seq.) is amended by tailed implementation plan; to the extent practicable, the distribution of adding at the end the following: ‘‘(2) explain the applicant’s need for Fed- grant awards is equitable and includes State ‘‘PART DD—JUVENILE SUBSTANCE ABUSE eral assistance; or local prosecutors— COURTS ‘‘(3) certify that the Federal support pro- ‘‘(1) in each State; and ‘‘SEC. 2926. DEFINITIONS. vided will be used to supplement, and not ‘‘(2) in rural, suburban, and urban jurisdic- ‘‘In this part: supplant, State, Indian tribal, and local tions. ‘‘(1) CRIME OF VIOLENCE.—The term ‘crime sources of funding that would otherwise be ‘‘SEC. 2905. REPORTS AND EVALUATIONS. of violence’ means a criminal offense that— available; ‘‘For each fiscal year, each recipient of a ‘‘(A) has as an element, the use, attempted ‘‘(4) identify related governmental or com- grant under this part during that fiscal year use, or threatened use of physical force munity initiatives that complement or will shall submit to the Attorney General a de- against the person or property of another; or be coordinated with the proposal; scription and an evaluation report regarding ‘‘(B) by its nature, involves a substantial ‘‘(5) certify that there has been appropriate the effectiveness of activities carried out risk that physical force against the person or consultation with all affected agencies and using that grant. Each report shall include property of another may be used in the that there will be appropriate coordination an evaluation in such form and containing course of committing the offense. with all affected agencies in the implementa- such information as the Attorney General ‘‘(2) VIOLENT JUVENILE OFFENDER.—The tion of the program; may reasonably require. The Attorney Gen- term ‘violent juvenile offender’ means a ju- ‘‘(6) certify that participating offenders eral shall specify the dates on which such re- venile who has been convicted of a violent will be supervised by one or more designated ports shall be submitted. offense or adjudicated delinquent for an act judges with responsibility for the substance ‘‘SEC. 2906. DEFINITIONS. that, if committed by an adult, would con- abuse court program; ‘‘In this part: stitute a crime of violence. ‘‘(7) specify plans for obtaining necessary ‘‘(1) The term ‘State or local prosecutor’ ‘‘SEC. 2927. GRANT AUTHORITY. support and continuing the proposed pro- means any district attorney, State attorney ‘‘(a) APPROPRIATE SUBSTANCE ABUSE COURT gram following the conclusion of Federal general, county attorney, or corporation PROGRAMS.—The Attorney General may support; and counsel who has authority to prosecute make grants to States, State courts, local ‘‘(8) describe the methodology that will be criminal offenses under State or local law. courts, units of local government, and Indian used in evaluating the program. ‘‘(2) The term ‘eligible offender’ means an tribes in accordance with this part to estab- ‘‘SEC. 2929. FEDERAL SHARE. individual who— lish programs that— ‘‘(a) IN GENERAL.—The Federal share of a ‘‘(A) has been convicted of, or pled guilty ‘‘(1) involve continuous judicial super- grant made under this part may not exceed to, or admitted guilt with respect to a crime vision over juvenile offenders (other than 75 percent of the total costs of the program for which a sentence of imprisonment is re- violent juvenile offenders) with substance described in the application submitted under quired and has not completed such sentence; abuse problems; section 2928 for the fiscal year for which the ‘‘(B) has never been convicted of, or pled ‘‘(2) integrate administration of other program receives assistance under this part. guilty to, or admitted guilt with respect to, sanctions and services, which include— ‘‘(b) WAIVER.—The Attorney General may and is not presently charged with, a felony ‘‘(A) mandatory random testing for the use waive, in whole or in part, the requirement crime of violence, a drug trafficking crime of controlled substances or other addictive of a matching contribution under subsection (as defined in section 924(c)(2) of title 18, substances during any period of supervised (a). United States Code), or a crime that is con- release or probation for each participant; ‘‘(c) IN-KIND CONTRIBUTIONS.—In-kind con- sidered a violent felony under State or local ‘‘(B) substance abuse treatment for each tributions may constitute a portion of the law; and participant; non-Federal share of a grant under this part. ‘‘(C) has been found by a professional sub- ‘‘(C) probation, diversion, or other super- ‘‘SEC. 2930. DISTRIBUTION OF FUNDS. stance abuse screener to be in need of sub- vised release involving the possibility of ‘‘(a) GEOGRAPHICAL DISTRIBUTION.—The At- stance abuse treatment because that of- prosecution, confinement, or incarceration torney General shall ensure that, to the ex- fender has a history of substance abuse that based on noncompliance with program re- tent practicable, an equitable geographic is a significant contributing factor to that quirements or failure to show satisfactory distribution of grant awards is made. offender’s criminal conduct. progress; and ‘‘(b) INDIAN TRIBES.—The Attorney General ‘‘(3) The term ‘felony crime of violence’ has ‘‘(D) programmatic offender management, shall allocate 0.75 percent of amounts made the meaning given such term in section and aftercare services such as relapse pre- available under this part for grants to Indian 924(c)(3) of title 18, United States Code. vention; and tribes. ‘‘(4) The term ‘major drug offense’ has the ‘‘(3) may include— ‘‘(c) MINIMUM ALLOCATION.—Unless all eli- meaning given such term in section 36(a) of ‘‘(A) payment, in whole or in part, by the gible applications submitted by any State or title 18, United States Code.’’. offender or his or her parent or guardian of unit of local government within such State (b) AUTHORIZATION OF APPROPRIATIONS.— treatment costs, to the extent practicable, for a grant under this part have been funded, Section 1001(a) of title I of the Omnibus such as costs for urinalysis or counseling; such State, together with grantees within Crime Control and Safe Streets Act of 1968 ‘‘(B) payment, in whole or in part, by the the State (other than Indian tribes), shall be (42 U.S.C. 3793(a)) is amended by adding at offender or his or her parent or guardian of allocated in each fiscal year under this part the end the following new paragraph: restitution, to the extent practicable, to ei- not less than 0.75 percent of the total ‘‘(24) There are authorized to be appro- ther a victim of the offender’s offense or to amount appropriated in the fiscal year for priated to carry out part CC such sums as a restitution or similar victim support fund; grants pursuant to this part. are necessary for each of fiscal years 2002 and ‘‘SEC. 2931. REPORT. through 2004.’’. ‘‘(C) economic sanctions shall not be at a ‘‘Each recipient of a grant under this part (c) STUDY OF THE EFFECT OF MANDATORY level that would interfere with the juvenile during a fiscal year shall submit to the At- MINIMUM SENTENCES FOR CONTROLLED SUB- offender’s education or rehabilitation. torney General a description and an evalua- STANCE OFFENSES.—Not later than 1 year ‘‘(b) USE OF GRANTS FOR NECESSARY SUP- tion report regarding the effectiveness of after the date of enactment of this Act, the PORT PROGRAMS.—A recipient of a grant programs established with the grant on the United States Sentencing Commission shall under this part may use the grant to pay for date specified by the Attorney General.

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‘‘SEC. 2932. TECHNICAL ASSISTANCE, TRAINING, ative agreement under paragraph (1) shall be (c) MINIMUM ALLOCATION.—Unless all eligi- AND EVALUATION. used for planning, establishing, or admin- ble applications submitted by any State or ‘‘(a) TECHNICAL ASSISTANCE AND TRAIN- istering education and prevention programs unit of local government within such State ING.—The Attorney General may provide relating to illicit drugs in accordance with for a grant under this section have been technical assistance and training in further- paragraph (3). funded, such State, together with grantees ance of the purposes of this part. ‘‘(3) USES OF AMOUNTS.— within the State (other than Indian tribes), ‘‘(b) EVALUATIONS.—In addition to any ‘‘(A) IN GENERAL.—Amounts provided under shall be allocated in each fiscal year under evaluation requirement that may be pre- this subsection may be used— this section not less than 0.75 percent of the scribed for recipients of grants under this ‘‘(i) to carry out school-based programs total amount appropriated in the fiscal year part, the Attorney General may carry out or that are focused on those districts with high for grants pursuant to this section. make arrangements for evaluations of pro- or increasing rates of drug abuse and addic- SEC. 2204. FUNDING FOR RURAL STATES AND grams that receive assistance under this tion and targeted at populations which are ECONOMICALLY DEPRESSED COM- part. most at-risk to start abuse of illicit drugs; MUNITIES. ‘‘(c) ADMINISTRATION.—The technical as- ‘‘(ii) to carry out community-based edu- (a) IN GENERAL.—The Director of the Cen- sistance, training, and evaluations author- cation and prevention programs and environ- ter for Substance Abuse Treatment shall ized by this section may be carried out di- mental change strategies that are focused on provide awards of grants, cooperative agree- rectly by the Attorney General, in collabora- those populations within the community ment, or contracts to public and nonprofit tion with the Secretary of Health and that are most at-risk for abuse of and addic- private entities for the purpose of providing Human Services, or through grants, con- tion to illicit drugs; treatment facilities in rural States and eco- tracts, or other cooperative arrangements ‘‘(iii) to assist local government entities nomically depressed communities that have with other entities. and community antidrug coalitions to plan, high rates of drug addiction but lack the re- ‘‘SEC. 2933. REGULATIONS. conduct, and evaluate appropriate preven- sources to provide adequate treatment. (b) MINIMUM QUALIFICATIONS FOR RECEIPT ‘‘The Attorney General shall issue any reg- tion activities and strategies relating to ille- OF AWARD.—With respect to the principal ulations and guidelines necessary to carry gal drugs; agency of the State involved that admin- out this part, which shall ensure that the ‘‘(iv) to train and educate State and local isters programs relating to substance abuse, programs funded with grants under this part law enforcement officials, prevention and the Director may make an award under sub- do not permit participation by violent juve- education officials, members of community section (a) to an applicant only if the agency nile offenders. antidrug coalitions and parents on the signs has certified to the Director that— ‘‘SEC. 2934. UNAWARDED FUNDS. of abuse of and addiction to illicit drugs, and (1) the applicant has the capacity to carry ‘‘The Attorney General may reallocate any the options for treatment and prevention; out a program described in subsection (a); grant funds that are not awarded for juvenile ‘‘(v) for planning, administration, and edu- (2) the plans of the applicant for such a substance abuse courts under this part for cational activities related to the prevention program are consistent with the policies of use for other juvenile delinquency and crime of abuse of and addiction to illicit drugs; such agency regarding the treatment of sub- prevention initiatives. ‘‘(vi) for the monitoring and evaluation of stance abuse; and prevention activities relating to illicit ‘‘SEC. 2935. AUTHORIZATION OF APPROPRIA- (3) the applicant, or any entity through drugs, and reporting and disseminating re- TIONS. which the applicant will provide authorized sulting information to the public; and ‘‘There is authorized to be appropriated for services, meets all applicable State licensure ‘‘(vii) for targeted pilot programs with each of fiscal years 2002 through 2004, such or certification requirements regarding the evaluation components to encourage innova- sums as are necessary to carry out this provision of the services involved. tion and experimentation with new meth- part.’’. (c) REQUIREMENT OF MATCHING FUNDS.— odologies. (b) CLERICAL AMENDMENT.—The table of (1) IN GENERAL.—With respect to the costs ‘‘(B) PRIORITY IN MAKING GRANTS.—The Ad- contents for title I of the Omnibus Crime of the program to be carried out by an appli- ministrator shall give priority in making Control and Safe Streets Act of 1968 (42 cant pursuant to subsection (a), a funding grants under this subsection to rural States, U.S.C. 3711 et seq.) is amended by adding at agreement for an award under such sub- urban areas, and other areas that are experi- the end the following: section is that the applicant will make avail- encing a high rate or rapid increases in drug ‘‘PART DD—JUVENILE SUBSTANCE ABUSE able (directly or through donations from abuse and addiction. COURTS public or private entities) non-Federal con- ‘‘(4) ANALYSES, EVALUATIONS, AND RE- ‘‘Sec. 2926. Definitions. tributions toward such costs in an amount PORTS.— ‘‘Sec. 2927. Grant authority. that— ‘‘(A) ANALYSES AND EVALUATIONS.—Not less ‘‘Sec. 2928. Applications. (A) for the first fiscal year for which the than $500,000 of the amount available in each ‘‘Sec. 2929. Federal share. applicant receives payments under an award fiscal year to carry out this subsection shall ‘‘Sec. 2930. Distribution of funds. under such subsection, is not less than $1 for be made available to the Administrator, act- ‘‘Sec. 2931. Report. each $9 of Federal funds provided in the ing in consultation with other Federal agen- ‘‘Sec. 2932. Technical assistance, training, award; cies, to support and conduct periodic anal- and evaluation. (B) for any second such fiscal year, is not yses and evaluations of effective education ‘‘Sec. 2933. Regulations. less than $1 for each $9 of Federal funds pro- and prevention programs for abuse of and ad- ‘‘Sec. 2934. Unawarded funds. vided in the award; and diction to illicit drugs and the development ‘‘Sec. 2935. Authorization of appropria- (C) for any subsequent such fiscal year, is of appropriate strategies for disseminating tions.’’. not less than $1 for each $3 of Federal funds information about and implementing these SEC. 2203. EXPANSION OF SUBSTANCE ABUSE provided in the award. programs. EDUCATION AND PREVENTION EF- (2) DETERMINATION OF AMOUNT CONTRIB- ‘‘(B) ANNUAL REPORT.—The Administrator FORTS. UTED.—Non-Federal contributions required shall submit to the committees of Congress (a) EXPANSION OF EFFORTS.—Section 515 of in paragraph (1) may be in cash or in kind, referred to in subparagraph (C) an annual re- the Public Health Service Act (42 U.S.C. fairly evaluated, including plant, equipment, port with the results of the analyses and 290bb–21) is amended by adding at the end or services. Amounts provided by the Federal evaluation under subparagraph (A). the following: Government, or services assisted or sub- ‘‘(C) COMMITTEES.—The committees of Con- ‘‘(e) GRANTS, CONTRACTS, AND COOPERATIVE sidized to any significant extent by the Fed- gress referred to in this subparagraph are the AGREEMENTS.— eral Government, may not be included in de- following: ‘‘(1) IN GENERAL.—The Administrator may termining the amount of such non-Federal ‘‘(i) SENATE.—The Committees on Health, make grants to and enter into contracts and contributions. cooperative agreements with public and non- Education, Labor, and Pensions, the Judici- (d) REPORTS TO DIRECTOR.—A funding profit private entities to enable such enti- ary, and Appropriations of the Senate. agreement for an award under subsection (a) ties— ‘‘(ii) HOUSE OF REPRESENTATIVES.—The is that the applicant involved will submit to ‘‘(A) to carry out school-based programs Committees on Energy and Commerce, the the Director a report— concerning the dangers of abuse of and addic- Judiciary, and Appropriations of the House (1) describing the utilization and costs of tion to illicit drugs, using methods that are of Representatives.’’. services provided under the award; effective and evidence-based, including ini- (b) AUTHORIZATION OF APPROPRIATIONS FOR (2) specifying the number of individuals tiatives that give students the responsibility EXPANSION OF ABUSE PREVENTION EFFORTS served and the type and costs of services pro- to create their own antidrug abuse education AND PRACTITIONER REGISTRATION REQUIRE- vided; and programs for their schools; and MENTS.—There is authorized to be appro- (3) providing such other information as the ‘‘(B) to carry out community-based abuse priated to carry out section 515(e) of the Director determines to be appropriate. and addiction education and prevention pro- Public Health Service Act (as added by sub- (e) REQUIREMENT OF APPLICATION.—The Di- grams relating to illicit drugs that are effec- section (a)) and section 303(g)(2) of the Con- rector may make an award under subsection tive and evidence-based. trolled Substances Act, such sums as are (a) only if an application for the award is ‘‘(2) USE OF GRANT, CONTRACT, OR COOPERA- necessary for fiscal year 2002, and such sums submitted to the Director containing such TIVE AGREEMENT FUNDS.—Amounts made as may be necessary for each succeeding fis- agreements, and the application is in such available under a grant, contract, or cooper- cal year. form, is made in such manner, and contains

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such other agreements and such assurances cant pursuant to subsection (a), a funding (k) AUTHORIZATION OF APPROPRIATIONS.— and information as the Director determines agreement for an award under such sub- There are authorized to be appropriated to to be necessary to carry out this section. section is that the applicant will make avail- carry out this section such sums as are nec- (f) EQUITABLE ALLOCATION OF AWARDS.—In able (directly or through donations from essary for each of the fiscal years 2002, 2003, making awards under subsection (a), the Di- public or private entities) non-Federal con- and 2004. rector shall ensure that the awards are equi- tributions toward such costs in an amount SEC. 2206. DRUG TREATMENT FOR JUVENILES. tably allocated among the principal geo- that— Title V of the Public Health Service Act graphic regions of the United States, subject (A) for the first fiscal year for which the (42 U.S.C. 290aa et seq.) is amended by adding to the availability of qualified applicants for applicant receives payments under an award at the end the following: the awards. under such subsection, is not less than $1 for ‘‘PART G—RESIDENTIAL TREATMENT (g) DURATION OF AWARD.—The period dur- each $9 of Federal funds provided in the PROGRAMS FOR JUVENILES ing which payments are made to an entity award; from an award under subsection (a) may not (B) for any second such fiscal year, is not ‘‘SEC. 575. RESIDENTIAL TREATMENT PROGRAMS FOR JUVENILES. exceed 5 years. The provision of such pay- less than $1 for each $9 of Federal funds pro- ‘‘(a) IN GENERAL.—The Director of the Cen- ments shall be subject to annual approval by vided in the award; and ter for Substance Abuse Treatment shall the Director of the payments and subject to (C) for any subsequent such fiscal year, is award grants to, or enter into cooperative the availability of appropriations for the fis- not less than $1 for each $3 of Federal funds agreements or contracts, with public and cal year involved to make the payments. provided in the award. nonprofit private entities for the purpose of This subsection may not be construed to es- (2) DETERMINATION OF AMOUNT CONTRIB- providing treatment to juveniles for sub- tablish a limitation on the number of awards UTED.—Non-Federal contributions required stance abuse through programs that are ef- under such subsection that may be made to in paragraph (1) may be in cash or in kind, fective and science-based in which, during an entity. fairly evaluated, including plant, equipment, the course of receiving such treatment the (h) EVALUATIONS; DISSEMINATION OF FIND- or services. Amounts provided by the Federal juveniles reside in facilities made available INGS.—The Director shall, directly or Government, or services assisted or sub- by the programs. through contract, provide for the conduct of sidized to any significant extent by the Fed- ‘‘(b) AVAILABILITY OF SERVICES FOR EACH evaluations of programs carried out pursu- eral Government, may not be included in de- PARTICIPANT.—A funding agreement for an ant to subsection (a). The Director shall dis- termining the amount of such non-Federal seminate to the States the findings made as award under subsection (a) for an applicant contributions. is that, in the program operated pursuant to a result of the evaluations. (d) REPORTS TO DIRECTOR.—A funding such subsection— (i) MINIMUM ALLOCATION.—Unless all eligi- agreement for an award under subsection (a) ‘‘(1) treatment services will be available ble applications submitted by any State or is that the applicant involved will submit to through the applicant, either directly or unit of local government within such State the Director a report— through agreements with other public or for a grant under this section have been (1) describing the utilization and costs of nonprofit private entities; and funded, such State, together with grantees services provided under the award; ‘‘(2) the services will be made available to within the State (other than Indian tribes), (2) specifying the number of individuals each person admitted to the program. shall be allocated in each fiscal year under served and the type and costs of services pro- ‘‘(c) INDIVIDUALIZED PLAN OF SERVICES.—A this section not less than 0.75 percent of the vided; and funding agreement for an award under sub- total amount appropriated in the fiscal year (3) providing such other information as the section (a) for an applicant is that— for grants pursuant to this section. Director determines to be appropriate. ‘‘(1) in providing authorized services for an (j) DEFINITION OF RURAL STATE.—In this (e) REQUIREMENT OF APPLICATION.—The Di- section, the term ‘‘rural State’’ has the same rector may make an award under subsection eligible person pursuant to such subsection, meaning as in section 1501(b) of the Omnibus (a) only if an application for the award is the applicant will, in consultation with the Crime Control and Safe Streets Act of 1968 submitted to the Director containing such juvenile and, if appropriate the parent or (42 U.S.C. 3796bb(B)). agreements, and the application is in such guardian of the juvenile, prepare an individ- (k) AUTHORIZATION OF APPROPRIATIONS.— form, is made in such manner, and contains ualized plan for the provision to the juvenile There are authorized to be appropriated to such other agreements and such assurances or young adult of the services; and carry out this section such sums as are nec- and information as the Director determines ‘‘(2) treatment services under the plan will essary for each of the fiscal years 2002, 2003, to be necessary to carry out this section. include— and 2004. (f) PRIORITY.—In making grants under this ‘‘(A) individual, group, and family coun- SEC. 2205. FUNDING FOR RESIDENTIAL TREAT- subsection, the Director shall give priority seling, as appropriate, regarding substance MENT CENTERS FOR WOMEN AND to areas experiencing a high rate or rapid in- abuse; and CHILDREN. crease in drug abuse and addiction. ‘‘(B) followup services to assist the juve- (a) IN GENERAL.—The Director of the Cen- (g) EQUITABLE ALLOCATION OF AWARDS.—In nile or young adult in preventing a relapse ter for Substance Abuse Treatment shall making awards under subsection (a), the Di- into such abuse. provide awards of grants, cooperative agree- rector shall ensure that the awards are equi- ‘‘(d) ELIGIBLE SUPPLEMENTAL SERVICES.— ment, or contracts to public and nonprofit tably allocated among the principal geo- Grants under subsection (a) may be used to private entities for the purpose of providing graphic regions of the United States, subject provide an eligible juvenile, the following treatment facilities that— to the availability of qualified applicants for services: (1) provide residential treatment for meth- the awards. ‘‘(1) HOSPITAL REFERRALS.—Referrals for amphetamine, heroin, and other drug ad- (h) DURATION OF AWARD.—The period dur- necessary hospital services. dicted women with minor children; and ing which payments are made to an entity ‘‘(2) HIV AND AIDS COUNSELING.—Counseling (2) offer specialized treatment for meth- from an award under subsection (a) may not on the human immunodeficiency virus and amphetamine-, heroin-, and other drug-ad- exceed 5 years. The provision of such pay- on acquired immune deficiency syndrome. dicted mothers and allow the minor children ments shall be subject to annual approval by ‘‘(3) DOMESTIC VIOLENCE AND SEXUAL ABUSE of those mothers to reside with them in the the Director of the payments and subject to COUNSELING.—Counseling on domestic vio- facility or nearby while treatment is ongo- the availability of appropriations for the fis- lence and sexual abuse. ing. cal year involved to make the payments. ‘‘(4) PREPARATION FOR REENTRY INTO SOCI- (b) MINIMUM QUALIFICATIONS FOR RECEIPT This subsection may not be construed to es- ETY.—Planning for and counseling to assist OF AWARD.—With respect to the principal tablish a limitation on the number of awards reentry into society, both before and after agency of the State involved that admin- under such subsection that may be made to discharge, including referrals to any public isters programs relating to substance abuse, an entity. or nonprofit private entities in the commu- the Director may make an award under sub- (i) EVALUATIONS; DISSEMINATION OF FIND- nity involved that provide services appro- section (a) to an applicant only if the agency INGS.—The Director shall, directly or priate for the juvenile. has certified to the Director that— through contract, provide for the conduct of ‘‘(e) MINIMUM QUALIFICATIONS FOR RECEIPT (1) the applicant has the capacity to carry evaluations of programs carried out pursu- OF AWARD.—With respect to the principal out a program described in subsection (a); ant to subsection (a). The Director shall dis- agency of a State or Indian tribe that admin- (2) the plans of the applicant for such a seminate to the States the findings made as isters programs relating to substance abuse, program are consistent with the policies of a result of the evaluations. the Director may award a grant to, or enter such agency regarding the treatment of sub- (j) MINIMUM ALLOCATION.—Unless all eligi- into a cooperative agreement or contract stance abuse; and ble applications submitted by any State or with, an applicant only if the agency or In- (3) the applicant, or any entity through unit of local government within such State dian tribe has certified to the Director which the applicant will provide authorized for a grant under this section have been that— services, meets all applicable State licensure funded, such State, together with grantees ‘‘(1) the applicant has the capacity to carry or certification requirements regarding the within the State (other than Indian tribes), out a program described in subsection (a); provision of the services involved. shall be allocated in each fiscal year under ‘‘(2) the plans of the applicant for such a (c) REQUIREMENT OF MATCHING FUNDS.— this section not less than 0.75 percent of the program are consistent with the policies of (1) IN GENERAL.—With respect to the costs total amount appropriated in the fiscal year such agency regarding the treatment of sub- of the program to be carried out by an appli- for grants pursuant to this section. stance abuse; and

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‘‘(3) the applicant, or any entity through section (a) only if an application for the ‘‘(6) SUPPLEMENTAL SERVICES.—The term which the applicant will provide authorized award is submitted to the Director con- ‘supplemental services’ means the services services, meets all applicable State licensure taining such agreements, and the application described in subsection (d). or certification requirements regarding the is in such form, is made in such manner, and ‘‘(s) AUTHORIZATION OF APPROPRIATIONS.— provision of the services involved. contains such other agreements and such as- ‘‘(1) IN GENERAL.—For the purpose of car- ‘‘(f) REQUIREMENTS FOR MATCHING FUNDS.— surances and information as the Director de- rying out this section and section 576 there is ‘‘(1) IN GENERAL.—With respect to the costs termines to be necessary to carry out this authorized to be appropriated such sums as of the program to be carried out by an appli- section. may be necessary for fiscal years 2002 cant pursuant to subsection (a), a funding ‘‘(m) PRIORITY.—In making grants under through 2004. There is authorized to be ap- agreement for an award under such sub- this subsection, the Director shall give pri- propriated from the Violent Crime Reduc- section is that the applicant will make avail- ority to areas experiencing a high rate or tion Trust Fund such sums as are necessary able (directly or through donations from rapid increase in drug abuse and addiction. in each of fiscal years 2002, 2003, and 2004. public or private entities) non-Federal con- ‘‘(n) EQUITABLE ALLOCATION OF AWARDS.— ‘‘(2) MINIMUM ALLOCATION.—Unless all eligi- tributions toward such costs in an amount In making awards under subsection (a), the ble applications submitted by any State or that— Director shall ensure that the awards are eq- unit of local government within such State ‘‘(A) for the first fiscal year for which the uitably allocated among the principal geo- for a grant under this section have been applicant receives payments under an award graphic regions of the United States, as well funded, such State,together with grantees under such subsection, is not less than $1 for as among Indian tribes, subject to the avail- within the State (other than Indian tribes), each $9 of Federal funds provided in the ability of qualified applicants for the awards. shall be allocated in each fiscal year under award; ‘‘(o) DURATION OF AWARD.— this section not less than 0.75 percent of the ‘‘(B) for any second such fiscal year, is not ‘‘(1) IN GENERAL.—The period during which total amount appropriated in the fiscal year less than $1 for each $9 of Federal funds pro- payments are made to an entity from an for grants pursuant to this section. vided in the award; and award under this section may not exceed 5 ‘‘(3) TRANSFER.—For the purpose described ‘‘(C) for any subsequent such fiscal year, is years. in paragraph (1), in addition to the amounts not less than $1 for each $3 of Federal funds ‘‘(2) APPROVAL OF DIRECTOR.—The provision authorized in such paragraph to be appro- provided in the award. of payments described in paragraph (1) shall priated for a fiscal year, there is authorized ‘‘(2) DETERMINATION OF AMOUNT CONTRIB- be subject to— to be appropriated for the fiscal year from UTED.—Non-Federal contributions required ‘‘(A) annual approval by the Director of the special forfeiture fund of the Director of in paragraph (1) may be in cash or in kind, the payments; and the Office of National Drug Control Policy fairly evaluated, including plant, equipment, ‘‘(B) the availability of appropriations for such sums as may be necessary. or services. Amounts provided by the Federal the fiscal year at issue to make the pay- ‘‘(4) RULE OF CONSTRUCTION.—The amounts Government, or services assisted or sub- ments. authorized in this subsection to be appro- sidized to any significant extent by the Fed- ‘‘(3) NO LIMITATION.—This subsection may priated are in addition to any other amounts eral Government, may not be included in de- not be construed to establish a limitation on that are authorized to be appropriated and termining the amount of such non-Federal the number of awards that may be made to are available for the purpose described in contributions. an entity under this section. paragraph (1). ‘‘(g) OUTREACH.—A funding agreement for ‘‘(p) EVALUATIONS; DISSEMINATION OF FIND- ‘‘SEC. 576. OUTPATIENT TREATMENT PROGRAMS an award under subsection (a) for an appli- INGS.—The Director shall, directly or FOR JUVENILES. cant is that the applicant will provide out- through contract, provide for the conduct of ‘‘(a) GRANTS.—The Secretary of Health and reach services in the community involved to evaluations of programs carried out pursu- Human Services, acting through the Director identify juveniles who are engaging in sub- ant to subsection (a). The Director shall dis- of the Center for Substance Abuse Treat- stance abuse and to encourage the juveniles seminate to the States the findings made as ment, shall make grants to establish to undergo treatment for such abuse. a result of the evaluations. projects for the outpatient treatment of sub- ‘‘(h) ACCESSIBILITY OF PROGRAM.—A fund- EPORTS TO CONGRESS.— stance abuse among juveniles. ing agreement for an award under subsection ‘‘(q) R ‘‘(1) INITIAL REPORT.—Not later than Octo- ‘‘(b) PREVENTION.—Entities receiving (a) for an applicant is that the program oper- ber 1, 2001, the Director shall submit to the grants under this section shall engage in ac- ated pursuant to such subsection will be op- Committee on the Judiciary of the House of tivities to prevent substance abuse among erated at a location that is accessible to low Representatives, and to the Committee on juveniles. income juveniles. ‘‘(c) EVALUATION.—The Secretary of Health ‘‘(i) CONTINUING EDUCATION.—A funding the Judiciary of the Senate, a report describ- and Human Services shall evaluate projects agreement for an award under subsection (a) ing programs carried out pursuant to this carried out under subsection (a) and shall is that the applicant involved will provide section. disseminate to appropriate public and pri- for continuing education in treatment serv- ‘‘(2) PERIODIC REPORTS.— vate entities information on effective ices for the individuals who will provide ‘‘(A) IN GENERAL.—Not less than biennially projects.’’. treatment in the program to be operated by after the date described in paragraph (1), the the applicant pursuant to such subsection. Director shall prepare a report describing SEC. 2207. COORDINATED JUVENILE SERVICES GRANTS. ‘‘(j) IMPOSITION OF CHARGES.—A funding programs carried out pursuant to this sec- agreement for an award under subsection (a) tion during the preceding 2-year period, and Title II of the Juvenile Justice and Delin- for an applicant is that, if a charge is im- shall submit the report to the Administrator quency Prevention Act of 1974 (42 U.S.C. 5611 posed for the provision of authorized services for inclusion in the biennial report under et seq.) is amended by inserting after section to or on behalf of an eligible juvenile, such section 501(k). 205 the following: charge— ‘‘(B) SUMMARY.—Each report under this ‘‘SEC. 205A. COORDINATED JUVENILE SERVICES ‘‘(1) will be made according to a schedule subsection shall include a summary of any GRANTS. of charges that is made available to the pub- evaluations conducted under subsection (m) ‘‘(a) IN GENERAL.—The Attorney General lic; during the period with respect to which the and the Secretary of Health and Human ‘‘(2) will be adjusted to reflect the eco- report is prepared. Services shall make grants to a consortium nomic condition of the juvenile involved; and ‘‘(r) DEFINITIONS.—In this section: within a State consisting of State or local ‘‘(3) will not be imposed on any such juve- ‘‘(1) AUTHORIZED SERVICES.—The term ‘au- juvenile justice agencies, State or local sub- nile whose family has an income of less than thorized services’ means treatment services stance abuse and mental health agencies, 185 percent of the official poverty line, as es- and supplemental services. and child service agencies to coordinate the tablished by the Director of the Office for ‘‘(2) JUVENILE.—The term ‘juvenile’ means delivery of services to children among these Management and Budget and revised by the anyone 18 years of age or younger at the agencies. Secretary in accordance with section 673(2) time that of admission to a program oper- ‘‘(b) USE OF FUNDS.—A consortium de- of the Omnibus Budget Reconciliation Act of ated pursuant to subsection (a). scribed in subsection (a) that receives a 1981 (42 U.S.C. 9902(2)). ‘‘(3) ELIGIBLE JUVENILE.—The term ‘eligible grant under this section shall use the grant ‘‘(k) REPORTS TO DIRECTOR.—A funding juvenile’ means a juvenile who has been ad- for the establishment and implementation of agreement for an award under subsection (a) mitted to a program operated pursuant to programs that address the service needs of is that the applicant involved will submit to subsection (a). juveniles with substance abuse and treat- the Director a report— ‘‘(4) FUNDING AGREEMENT UNDER SUBSECTION ment problems who come into contact with ‘‘(1) describing the utilization and costs of (A).—The term ‘funding agreement under sub- the justice system by requiring the fol- services provided under the award; section (a)’, with respect to an award under lowing: ‘‘(2) specifying the number of juveniles subsection (a), means that the Director may ‘‘(1) Collaboration across child serving sys- served, and the type and costs of services make the award only if the applicant makes tems, including juvenile justice agencies, provided; and the agreement involved. relevant substance abuse and mental health ‘‘(3) providing such other information as ‘‘(5) TREATMENT SERVICES.—The term treatment providers, and State or local edu- the Director determines to be appropriate. ‘treatment services’ means treatment for cational entities and welfare agencies. ‘‘(l) REQUIREMENT OF APPLICATION.—The substance abuse, including the counseling ‘‘(2) Appropriate screening and assessment Director may make an award under sub- and services described in subsection (c)(2). of juveniles.

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‘‘(3) Individual treatment plans. viduals, including juveniles, abuse drugs or ‘‘(d) REQUIREMENT TO ENSURE THAT RE- ‘‘(4) Significant involvement of juvenile refrain from abusing drugs. SEARCH AIDS PRACTITIONERS.—The Director, judges where possible. ‘‘(3) RESEARCH RESULTS.—The Director in conjunction with the Director of the Na- ‘‘(c) APPLICATION FOR COORDINATED JUVE- shall promptly disseminate research results tional Institute on Alcohol Abuse and Alco- NILE SERVICES GRANT.— under this subsection to Federal, State and holism and the Administrator of the Sub- ‘‘(1) IN GENERAL.—A consortium described local entities involved in combating drug stance Abuse and Mental Health Services in subsection (a) desiring to receive a grant abuse and addiction. Administration, shall— under this section shall submit an applica- ‘‘(4) AUTHORIZATION OF APPROPRIATIONS.— ‘‘(1) ensure that the results of all current tion containing such information as the Ad- ‘‘(A) AUTHORIZATION OF APPROPRIATIONS.— substance abuse research that is set aside for ministrator may prescribe. For the purpose of carrying out paragraphs services (and other appropriate research with ‘‘(2) CONTENTS.—In addition to guidelines (1), (2), and (3) there is authorized to be ap- practical consequences) is widely dissemi- established by the Administrator, each appli- propriated such sums as are necessary for nated to treatment and prevention practi- cation submitted under paragraph (1) shall fiscal year 2002, and such sums as may be tioners, including general practitioners, in provide— necessary for fiscal years 2003 and 2004, for an easily understandable format; ‘‘(A) certification that there has been ap- establishment of up to 12 new CTN Centers ‘‘(2) ensure that such research results are propriate consultation with all affected and for the identification and development disseminated in a manner that provides eas- agencies and that there will be appropriate of the most effective methods of treatment ily understandable steps for the implementa- coordination with all affected agencies in and prevention of drug addiction, including tion of best practices based on the research; the implementation of the program; behavioral, cognitive, and pharmacological and ‘‘(B) for the regular evaluation of the pro- treatments among juveniles and adults. ‘‘(3) make technical assistance available to gram funded by the grant and describe the ‘‘(B) SUPPLEMENT NOT SUPPLANT.—Amounts the Center for Substance Abuse Treatment methodology that will be used in evaluating appropriated pursuant to the authorization and the Center for Substance Abuse Preven- the program; of appropriations in subparagraph (A) for a tion to assist alcohol and drug treatment ‘‘(C) assurances that the proposed program fiscal year shall supplement and not sup- practitioners to make permanent changes in or activity will not supplant similar pro- plant any other amounts appropriated in treatment and prevention activities through grams and activities currently available in such fiscal year for research on drug abuse the use of successful models.’’. the community; and and addiction.’’. SEC. 2211. STUDY ON STRENGTHENING EFFORTS ‘‘(D) specify plans for obtaining necessary SEC. 2209. REPORT ON DRUG-TESTING TECH- ON SUBSTANCE ABUSE RESEARCH support and continuing the proposed pro- NOLOGIES. AT THE NATIONAL INSTITUTES OF gram following the conclusion of Federal (a) REQUIREMENT.—The National Institute HEALTH. support. on Standards and Technology shall conduct (a) STUDY.—The Secretary of Health and ‘‘(3) FEDERAL SHARE.—The Federal share of a study of drug-testing technologies in order Human Services (in this section referred to a grant under this section shall not exceed 75 to identify and assess the efficacy, accuracy, as the ‘‘Secretary’’), shall enter into a con- percent of the cost of the program. and usefulness for purposes of the National tract, under subsection (b), to conduct a ‘‘(d) REPORT.—Each recipient of a grant effort to detect the use of illicit drugs of any study to determine if combining the Na- under this section during a fiscal year shall drug-testing technologies (including the tional Institute on Drug Abuse and the Na- submit to the Attorney General a descrip- testing of hair) that may be used as alter- tional Institute on Alcohol Abuse and Alco- tion and an evaluation report regarding the natives or complements to urinalysis as a holism of the National Institutes of Health effectiveness of programs established with means of detecting the use of such drugs. to form 1 National Institute on Addiction the grant on the date specified by the Attor- (b) REPORT.—Not later than 180 days after would— the date of the enactment of this Act, the In- ney General. (1) strengthen the scientific research ef- stitute shall submit to Congress a report on ‘‘(e) AUTHORIZATION OF APPROPRIATIONS.— forts on substance abuse at the National In- the results of the study conducted under sub- There shall be made available from the Vio- stitutes of Health; and section (a). lent Crime Reduction Trust Fund for each of (2) be more economically efficient. fiscal years 2002 through 2004, such sums as SEC. 2210. USE OF NATIONAL INSTITUTES OF (b) INSTITUTE OF MEDICINE OF THE NATIONAL are necessary to carry out this section.’’. HEALTH SUBSTANCE ABUSE RE- SEARCH. ACADEMY OF SCIENCES.—The Secretary shall SEC. 2208. EXPANSION OF RESEARCH. (a) NATIONAL INSTITUTE ON ALCOHOL ABUSE request the Institute of Medicine of the Na- Section 464L of the Public Health Service AND ALCOHOLISM.—Section 464H of the Public tional Academy of Sciences to enter into a Act (42 U.S.C. 285o) is amended by adding at Health Service Act (42 U.S.C. 285n) is amend- contract under subsection (a) to conduct the the end the following: ed— study described in subsection (a). ‘‘(f) DRUG ABUSE RESEARCH.— (1) by redesignating subsection (d) as sub- (c) REPORT.—Not later than 9 months after ‘‘(1) GRANTS OR COOPERATIVE AGREE- section (e); and the date of enactment of this Act, the Sec- MENTS.—The Director of the Institute shall (2) by inserting after subsection (c) the fol- retary shall submit to the Committee on the make grants or enter into cooperative agree- Judiciary of the Senate— ments to conduct research on drug abuse lowing: ‘‘(d) REQUIREMENT TO ENSURE THAT RE- (1) a report detailing the results of the treatment and prevention, and as is nec- SEARCH AIDS PRACTITIONERS.—The Director, study conducted under subsection (a); and essary to establish up to 12 new National in conjunction with the Director of the Na- (2) any recommendations. Drug Abuse Treatment Clinical Trials Net- tional Institute on Drug Abuse and the Ad- Subtitle C—School Safety and Character work (CTN) Centers to develop and test an ministrator of the Substance Abuse and Education array of behavioral and pharmacological Mental Health Services Administration, CHAPTER 1—SCHOOL SAFETY treatments and to determine the conditions shall— SEC. 2301. ALTERNATIVE EDUCATION. under which novel treatments are success- ‘‘(1) ensure that the results of all current fully adopted by local treatment clinics. Part D of title I of the Elementary and substance abuse research that is set aside for Secondary Education Act of 1965 (20 U.S.C. ‘‘(2) USE OF FUNDS.—Amounts made avail- services (and other appropriate research with 6421 et seq.) is amended by adding at the end able under a grant or cooperative agreement practical consequences) is widely dissemi- the following: under paragraph (1) for drug abuse and addic- nated to treatment, prevention, and general tion may be used for research and clinical practitioners in an easily understandable ‘‘Subpart 4—Alternative Education trials relating to— format; Demonstration Project Grants ‘‘(A) the effects of drug abuse on the ‘‘(2) ensure that such research results are ‘‘SEC. 1441. PROGRAM AUTHORITY. human body, including the brain; disseminated in a manner that provides eas- ‘‘(a) GRANTS.— ‘‘(B) the addictive nature of various drugs ily understandable steps for the implementa- ‘‘(1) IN GENERAL.—From amounts appro- and how such effects differ with respect to tion of best practices based on the research; priated under section 1443, the Secretary, in different individuals; and consultation with the Administrator, shall ‘‘(C) the connection between drug abuse, ‘‘(3) make technical assistance available to make grants to State educational agencies mental health, and teenage suicide; the Center for Substance Abuse Treatment or local educational agencies for not less ‘‘(D) the identification and evaluation of and the Center for Substance Abuse Preven- than 10 demonstration projects that enable the most effective methods of prevention of tion to assist alcohol and drug treatment the agencies to develop models for and carry drug abuse and addiction among juveniles and prevention practitioners, including gen- out alternative education for at-risk youth. and adults; eral practitioners, to make permanent ‘‘(2) CONSTRUCTION.—Nothing in this sub- ‘‘(E) the identification and development of changes in treatment and prevention activi- part shall be construed to affect the require- the most effective methods of treatment of ties through the use of successful models.’’. ments of the Individuals with Disabilities drug addiction, including pharmacological (b) NATIONAL INSTITUTE ON DRUG ABUSE.— Education Act. treatments; Section 464L of the Public Health Service ‘‘(b) DEMONSTRATION PROJECTS.— ‘‘(F) risk factors for drug abuse; Act (42 U.S.C. 285o) is amended— ‘‘(1) PARTNERSHIPS.—Each agency receiving ‘‘(G) effects of drug abuse and addiction on (1) by redesignating subsection (d) as sub- a grant under this subpart may enter into a pregnant women and their fetuses; and section (e); and partnership with a private sector entity to ‘‘(H) cultural, social, behavioral, neuro- (2) by inserting after subsection (c) the fol- provide alternative educational services to logical and psychological reasons that indi- lowing: at-risk youth.

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‘‘(2) REQUIREMENTS.—Each demonstration gram funded by the demonstration project transfer of disciplinary records by local edu- project assisted under this subpart shall— after the termination of Federal funding cational agencies to any private or public el- ‘‘(A) accept for alternative education at- under this subpart. ementary school or secondary school for any risk or delinquent youth who are referred by ‘‘(d) MATCHING REQUIREMENT.— student who is enrolled or seeks, intends, or a local school or by a court with a juvenile ‘‘(1) IN GENERAL.—Grant funds provided is instructed to enroll, full-time or part- delinquency docket and who— under this subpart shall not constitute more time, in the school.’’. ‘‘(i) have demonstrated a pattern of serious than 35 percent of the cost of the demonstra- CHAPTER 2—CHARACTER EDUCATION and persistent behavior problems in regular tion project funded. Subchapter A—National Character schools; ‘‘(2) SOURCE OF FUNDS.—Matching funds for Achievement Award ‘‘(ii) are at risk of dropping out of school; grants under this subpart may be derived SEC. 2311. NATIONAL CHARACTER ACHIEVEMENT ‘‘(iii) have been convicted of a criminal of- from amounts available under part B of title AWARD. fense or adjudicated delinquent for an act of II, of the Juvenile Justice and Delinquency (a) PRESENTATION AUTHORIZED.—The Presi- juvenile delinquency, and are under a court’s Prevention Act of 1974 (42 U.S.C. 5611 et seq.) dent is authorized to award to individuals supervision; or to the State in which the demonstration under the age of 18, on behalf of the Con- ‘‘(iv) have demonstrated that continued en- project will be carried out, except that the gress, a National Character Achievement rollment in a regular classroom— total share of funds derived from Federal Award, consisting of a medal of appropriate ‘‘(I) poses a physical threat to other stu- sources shall not exceed 50 percent of the design, with ribbons and appurtenances, hon- dents; or cost of the demonstration project. oring those individuals for distinguishing ‘‘(II) inhibits an atmosphere conducive to ‘‘(e) PROGRAM EVALUATION.— themselves as a model of good character. learning; and ‘‘(1) IN GENERAL.—Each State educational (b) DESIGN AND STRIKING.—For the pur- ‘‘(B) provide for accelerated learning, in a agency or local educational agency that re- poses of the award referred to in subsection safe, secure, and disciplined environment, in- ceives a grant under this subpart shall evalu- (a), the Secretary of the Treasury shall de- cluding— ate the demonstration project assisted under sign and strike a medal with suitable em- ‘‘(i) basic curriculum focused on mastery of this subpart in the same manner as programs blems, devices, and inscriptions, to be deter- essential skills, including targeted instruc- are evaluated under section 1431. In addition, mined by such Secretary. tion in basic skills required for secondary the evaluation shall include— (c) ELIGIBILITY.— school graduation and employment; and ‘‘(A) an evaluation of the effect of the al- (1) IN GENERAL.—The President pro tem- ‘‘(ii) emphasis on— ternative education project on order, dis- pore of the Senate and the Speaker of the ‘‘(I) personal, academic, social, and work- cipline, and an effective learning environ- House of Representatives shall establish pro- place skills; and ment in regular classrooms; cedures for the processing of recommenda- ‘‘(II) behavior modification. ‘‘(B) an evaluation of the project’s effec- tions to be forwarded to the President for ‘‘(c) APPLICABILITY.—Except as provided in tiveness in improving the skills and abilities awarding National Character Achievement subsections (c) and (e) of section 1442, the of at-risk students assigned to alternative Awards under subsection (a). provisions of section 1401(c), 1402, and 1431, education, including an analysis of the aca- (2) RECOMMENDATIONS BY SCHOOL PRIN- and subparts 1 and 2, shall not apply to this demic and social progress of such students; CIPALS.—At a minimum, the recommenda- subpart. and tions referred to in paragraph (1) shall con- ‘‘(d) DEFINITION OF ADMINISTRATOR.—In ‘‘(C) an evaluation of the project’s effec- tain the endorsement of the principal (or this subpart, the term ‘Administrator’ tiveness in reducing juvenile crime and de- equivalent official) of the school in which means the Administrator of the Office of Ju- linquency, including— the individual under the age of 18 is enrolled. venile Crime Control and Prevention of the ‘‘(i) reductions in incidents of campus Subchapter B—Preventing Juvenile Department of Justice. crime in relevant school districts, compared Delinquency Through Character Education with school districts not included in the ‘‘SEC. 1442. APPLICATIONS; GRANTEE SELECTION. SEC. 2321. PURPOSE. project; and ‘‘(a) APPLICATIONS.—Each State edu- The purpose of this subchapter is to sup- ‘‘(ii) reductions in recidivism by at-risk cational agency and local educational agen- port the work of community-based organiza- students who have juvenile justice system cy seeking a grant under this subpart shall tions, local educational agencies, and involvement and are assigned to alternative submit an application in such form, and con- schools in providing children and youth with education. taining such information, as the Secretary, alternatives to delinquency through strong ‘‘(2) EVALUATION BY THE SECRETARY.—The in consultation with the Administrator, may after school programs that— Secretary, in cooperation with the Adminis- reasonably require. (1) are organized around character edu- trator, shall comparatively evaluate each of ‘‘(b) SELECTION OF GRANTEES.— cation; the demonstration projects funded under this ‘‘(1) IN GENERAL.—The Secretary shall se- (2) reduce delinquency, school discipline subpart, including an evaluation of the effec- lect State educational agencies and local problems, and truancy; and tiveness of private sector educational serv- educational agencies to receive grants under (3) improve student achievement, overall ices, and shall report the findings of the this subpart on an equitable geographic school performance, and youths’ positive in- evaluation to the Committee on Education basis, including selecting agencies that serve volvement in their community. urban, suburban, and rural populations. and the Workforce of the House of Rep- resentatives and the Committees on the Ju- SEC. 2322. AUTHORIZATION OF APPROPRIATIONS. ‘‘(2) MINIMUM.—The Secretary shall award (a) IN GENERAL.—There are authorized to diciary and Health, Education, Labor and a grant under this subpart to not less than 1 be appropriated to carry out the after school Pensions of the Senate not later than June agency serving a population with a signifi- programs under this subchapter, such sums 30, 2007. cant percentage of Native Americans. as are necessary for fiscal year 2002, and such ‘‘(3) PRIORITY.—In awarding grants under ‘‘SEC. 1443. AUTHORIZATION OF APPROPRIA- sums as may be necessary for each of the 2 TIONS. this subpart, the Secretary may give priority succeeding fiscal years. to State educational agencies and local edu- ‘‘There are authorized to be appropriated (b) SOURCE OF FUNDING.—Amounts author- cational agencies that demonstrate in the to carry out this subpart such sums as are ized to be appropriated pursuant to this sec- application submitted under subsection (a) necessary for each of fiscal years 2002, 2003, tion may be derived from the Violent Crime that the State has a policy of equitably dis- and 2004.’’. Reduction Trust Fund. tributing resources among school districts in SEC. 2302. TRANSFER OF SCHOOL DISCIPLINARY SEC. 2323. AFTER SCHOOL PROGRAMS. RECORDS. the State. (a) IN GENERAL.—The Secretary, in con- ‘‘(c) QUALIFICATIONS.—To qualify for a Part F of title XIV of the Elementary and sultation with the Attorney General, is au- grant under this subpart, a State edu- Secondary Education Act of 1965 (20 U.S.C. thorized to award grants to community- cational agency or local educational agency 8921 et seq.) is amended by adding at the end based organizations to enable the organiza- shall— the following: tions to provide youth with alternative ac- ‘‘(1) in the case of a State educational ‘‘SEC. 14604. TRANSFER OF SCHOOL DISCIPLI- tivities, in the after school or out of school agency, have submitted a State plan under NARY RECORDS. hours, that include a strong character edu- section 1414(a) that is approved by the Sec- ‘‘(a) NONAPPLICATION OF PROVISIONS.—The cation component. retary; provisions of this section shall not apply to (b) ELIGIBLE COMMUNITY-BASED ORGANIZA- ‘‘(2) in the case of a local educational agen- any disciplinary records transferred from a TIONS.—The Secretary shall only award a cy, have submitted an application under sec- private, parochial, or other nonpublic school, grant under this section to a community- tion 1423 that is approved by the State edu- person, institution, or other entity, that pro- based organization that has a demonstrated cational agency; vides education below the college level. capacity to provide after school or out of ‘‘(3) explain the educational and juvenile ‘‘(b) DISCIPLINARY RECORDS.—Not later school programs to youth, including youth justice needs of the community to be ad- than 2 years after the date of enactment of serving organizations, businesses, and other dressed by the demonstration project; the Drug Abuse Education, Prevention, and community groups. ‘‘(4) provide a detailed plan to implement Treatment Act of 2001, each State receiving (c) APPLICATIONS.—Each community-based the demonstration project; and Federal funds under this Act shall provide an organization desiring a grant under this sec- ‘‘(5) provide assurances and an explanation assurance to the Secretary that the State tion shall submit an application to the Sec- of the agency’s ability to continue the pro- has a procedure in place to facilitate the retary at such time and in such manner as

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Each application 14101 of the Elementary and Secondary Edu- (4) a description of the goals of the pro- shall include— cation Act of 1965 (20 U.S.C. 8801). gram; (1) a description of the community to be (2) CHARACTER EDUCATION.—The term (5) a description of how progress toward served and the needs that will be met ‘‘character education’’ means an organized achieving such goals, and toward meeting through the program in that community; educational program that works to reinforce the purposes of this subchapter, will be (2) a description of how the program will core elements of character, including caring, measured; and identify and recruit at-risk youth for partici- civic virtue and citizenship, justice and fair- (6) an assurance that the community-based pation in the program, and how the program ness, respect, responsibility, and trust- organization will provide the Attorney Gen- will provide continuing support for the par- worthiness. eral with information regarding the program ticipation of such youth; (3) SECRETARY.—The term ‘‘Secretary’’ and the effectiveness of the program. (3) a description of the activities to be as- means the Secretary of Health and Human SEC. 2334. GENERAL PROVISIONS. sisted under the grant, including— Services. (a) DURATION.—Each grant under this sub- (A) how parents, students, and other mem- Subchapter C—Counseling, Training, and chapter shall be awarded for a period of not bers of the community will be involved in Mentoring Children of Prisoners to exceed 5 years. the design and implementation of the pro- SEC. 2331. PURPOSE. (b) PLANNING.—A community-based organi- gram; The purpose of this subchapter is to sup- zation may use grant funds provided under (B) how character education will be incor- port the work of community-based organiza- this subchapter for not more than 1 year for porated into the program; and tions in providing counseling, training, and the planning and design of the program to be (C) how the program will coordinate activi- mentoring services to America’s most at- assisted. ties assisted under this section with activi- risk children and youth in low-income and (c) SELECTION OF GRANTEES.— ties of schools and other community-based high-crime communities who have a parent (1) CRITERIA.—The Attorney General shall organizations; or legal guardian that is incarcerated in a select, through a peer review process, com- (4) a description of the goals of the pro- Federal, State, or local correctional facility. munity-based organizations to receive grants gram; SEC. 2332. AUTHORIZATION OF APPROPRIATIONS. under this subchapter on the basis of the (5) a description of how progress toward (a) IN GENERAL.—There are authorized to quality of the applications submitted and achieving such goals, and toward meeting be appropriated to carry out programs under taking into consideration such factors as— the purposes of this subchapter, will be this subchapter, such sums as are necessary (A) the quality of the activities to be as- measured; and for fiscal year 2002, and such sums as may be sisted; (6) an assurance that the community-based necessary for each of the 2 succeeding fiscal (B) the extent to which the program fos- organization will provide the Secretary with years. ters positive youth development and encour- information regarding the program and the (b) SOURCE OF FUNDING.—Amounts author- ages meaningful and rewarding lifestyles; effectiveness of the program. ized to be appropriated pursuant to this sec- (C) the likelihood the goals of the program SEC. 2324. GENERAL PROVISIONS. tion may be derived from the Violent Crime will be realistically achieved; (a) DURATION.—Each grant under this sub- Reduction Trust Fund. (D) the experience of the applicant in pro- chapter shall be awarded for a period of not SEC. 2333. COUNSELING, TRAINING, AND MEN- viding similar services; and to exceed 5 years. TORING PROGRAMS. (E) the coordination of the program with (b) PLANNING.—A community-based organi- (a) IN GENERAL.—The Attorney General larger community efforts. zation may use grant funds provided under shall award grants to community-based or- (2) DIVERSITY OF PROJECTS.—The Attorney this subchapter for not more than 1 year for ganizations to enable the organizations to General shall approve applications under the planning and design of the program to be provide youth who have a parent or legal this subchapter in a manner that ensures, to assisted. guardian incarcerated in a Federal, State, or the extent practicable, that programs as- (c) SELECTION OF GRANTEES.— local correctional facility with counseling, sisted under this subchapter serve different (1) CRITERIA.—The Secretary, in consulta- training, and mentoring services in low-in- low-income and high-crime communities of tion with the Attorney General, shall select, come and high-crime communities that in- the United States. through a peer review process, community- clude— (d) USE OF FUNDS.—Grant funds under this based organizations to receive grants under (1) counseling, including drug prevention subchapter shall be used to support the work this subchapter on the basis of the quality of counseling; of community-based organizations in pro- the applications submitted and taking into (2) academic tutoring, including online viding children of incarcerated parents or consideration such factors as— computer academic programs that focus on legal guardians with alternatives to delin- (A) the quality of the activities to be as- the development and reinforcement of basic quency through strong after school, or out of sisted; skills; school programs that— (B) the extent to which the program fos- (3) technology training, including com- (1) are organized around counseling, train- ters in youth the elements of character and puter skills; ing, and mentoring; reaches youth at-risk of delinquency; (4) job skills and vocational training; and (2) reduce delinquency, school discipline (C) the quality of the plan for measuring (5) confidence building mentoring services. problems, and truancy; and and assessing the success of the program; (b) ELIGIBLE COMMUNITY-BASED ORGANIZA- (3) improve student achievement, overall (D) the likelihood the goals of the program TIONS.—The Attorney General shall only school performance, and youths’ positive in- will be realistically achieved; award a grant under this section to a com- volvement in their community. (E) the experience of the applicant in pro- munity-based organization that has a dem- viding similar services; and onstrated capacity to provide after school or Subtitle D—Reestablishment of Drug Courts (F) the coordination of the program with out of school programs to youth, including SEC. 2401. REESTABLISHMENT OF DRUG COURTS. larger community efforts in character edu- youth serving organizations, businesses, and (a) DRUG COURTS.—Title I of the Omnibus cation. other community groups. Crime Control and Safe Streets Act of 1968 (2) DIVERSITY OF PROJECTS.—The Secretary (c) APPLICATIONS.—Each community-based (42 U.S.C. 3711 et seq.) is amended by insert- shall approve applications under this sub- organization desiring a grant under this sec- ing after part DD the following new part: tion shall submit an application to the At- chapter in a manner that ensures, to the ex- ‘‘PART EE—DRUG COURTS tent practicable, that programs assisted torney General at such time and in such under this subchapter serve different areas of manner as the Attorney General may re- ‘‘SEC. 2951. GRANT AUTHORITY. the United States, including urban, suburban quire. Each application shall include— ‘‘(a) IN GENERAL.—The Attorney General and rural areas, and serve at-risk popu- (1) a description of the community to be may make grants to States, State courts, lations. served and the needs that will be met local courts, units of local government, and (d) USE OF FUNDS.—Grant funds under this through the program in that community; Indian tribal governments, acting directly or subchapter shall be used to support the work (2) a description of how the program will through agreements with other public or pri- of community-based organizations, schools, identify and recruit youth who have a parent vate entities, for programs that involve— or local educational agencies in providing or legal guardian that is incarcerated in a ‘‘(1) continuing judicial supervision over children and youth with alternatives to de- Federal, State, or local correctional facility offenders with substance abuse problems who linquency through strong after school, or out for participation in the program, and how are not violent offenders; and of school programs that— the program will provide continuing support ‘‘(2) the integrated administration of other (1) are organized around character edu- for the participation of such youth; sanctions and services, which shall include— cation; (3) a description of the activities to be as- ‘‘(A) mandatory periodic testing for the (2) reduce delinquency, school discipline sisted under the grant, including— use of controlled substances or other addict- problems, and truancy; and (A) how parents, residents, and other mem- ive substances during any period of super- (3) improve student achievement, overall bers of the community will be involved in vised release or probation for each partici- school performance, and youths’ positive in- the design and implementation of the pro- pant; volvement in their community. gram; and ‘‘(B) substance abuse treatment for each (e) DEFINITIONS.—In this subchapter: (B) how counseling, training, and men- participant; (1) IN GENERAL.—The terms used shall have toring services will be incorporated into the ‘‘(C) diversion, probation, or other super- the meanings given such terms in section program; vised release involving the possibility of

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Distribution and allocation. care, education, vocational training, job program; ‘‘Sec. 2958. Report. placement, housing placement, and child ‘‘(7) specify plans for obtaining necessary ‘‘Sec. 2959. Technical assistance, training, care or other family support services for support and continuing the proposed pro- and evaluation.’’. each participant who requires such services; gram following the conclusion of Federal SEC. 2402. AUTHORIZATION OF APPROPRIATIONS. ‘‘(E) payment, in whole or part, by the of- support; and Section 1001(a) of title I of the Omnibus fender of treatment costs, to the extent prac- ‘‘(8) describe the methodology that will be Crime Control and Safe Streets Act of 1968 ticable, such as costs for urinalysis or coun- used in evaluating the program. (42 U.S.C. 3793) is amended— seling; and ‘‘SEC. 2955. APPLICATIONS. (1) in paragraph (3), by inserting before the ‘‘(F) payment, in whole or part, by the of- ‘‘To request funds under this part, the period at the end the following: ‘‘or EE’’; and fender of restitution, to the extent prac- chief executive or the chief justice of a State (2) by adding at the end the following new ticable, to either a victim of the offender’s or the chief executive or judge of a unit of paragraph: offense or to a restitution or similar victim local government or Indian tribal govern- ‘‘(20)(A) There are authorized to be appro- support fund. ment, or the chief judge of a State court or priated for fiscal year 2002 such sums as are ‘‘(b) LIMITATION.—Economic sanctions im- the judge of a local court or Indian tribal necessary and for fiscal years 2003 and 2004 posed on an offender pursuant to this section court shall submit an application to the At- such sums as may be necessary to carry out shall not be at a level that would interfere torney General in such form and containing part EE. with the offender’s rehabilitation. such information as the Attorney General ‘‘(B) The Attorney General shall reserve ‘‘SEC. 2952. PROHIBITION OF PARTICIPATION BY may reasonably require. not less than 1 percent and not more than 4.5 VIOLENT OFFENDERS. ‘‘SEC. 2956. FEDERAL SHARE. percent of the sums appropriated for this ‘‘The Attorney General shall— ‘‘(a) IN GENERAL.—The Federal share of a program in each fiscal year for research and ‘‘(1) issue regulations or guidelines to en- grant made under this part may not exceed evaluation of this program.’’. sure that the programs authorized in this 75 percent of the total costs of the program Subtitle E—Program for Successful Reentry part do not permit participation by violent described in the application submitted under of Criminal Offenders Into Local Commu- offenders; and section 2955 for the fiscal year for which the nities ‘‘(2) immediately suspend funding for any program receives assistance under this part, SEC. 2501. SHORT TITLE. grant under this part, pending compliance, if unless the Attorney General waives, wholly This subtitle may be cited as the ‘‘Offender the Attorney General finds that violent of- or in part, the requirement of a matching Reentry and Community Safety Act of 2001’’. fenders are participating in any program contribution under this section. SEC. 2502. PURPOSES. funded under this part. ‘‘(b) IN-KIND CONTRIBUTIONS.—In-kind con- The purposes of this subtitle are to— ‘‘SEC. 2953. DEFINITION. tributions may constitute a portion of the (1) establish demonstration projects in sev- ‘‘In this part, the term ‘violent offender’ non-Federal share of a grant. eral Federal judicial districts, the District of means a person who— ‘‘SEC. 2957. DISTRIBUTION AND ALLOCATION. Columbia, and in the Federal Bureau of Pris- ‘‘(1) is charged with or convicted of an of- ‘‘(a) GEOGRAPHIC DISTRIBUTION.—The At- ons, using new strategies and emerging tech- fense, during the course of which offense or torney General shall ensure that, to the ex- nologies that alleviate the public safety risk conduct— tent practicable, an equitable geographic posed by released prisoners by promoting ‘‘(A) the person carried, possessed, or used distribution of grant awards is made. their successful reintegration into the com- a firearm or dangerous weapon; ‘‘(b) MINIMUM ALLOCATION.—Unless all eli- munity; ‘‘(B) there occurred the death of or serious gible applications submitted by any State or (2) establish court-based programs to mon- bodily injury to any person; or unit of local government within such State itor the return of offenders into commu- ‘‘(C) there occurred the use of force against for a grant under this part have been funded, nities, using court sanctions to promote the person of another, without regard to such State, together with grantees within positive behavior; whether any of the circumstances described the State (other than Indian tribes), shall be (3) establish offender reentry demonstra- in subparagraph (A) or (B) is an element of allocated in each fiscal year under this part tion projects in the states using government the offense or conduct of which or for which not less than 0.75 percent of the total and community partnerships to coordinate the person is charged or convicted; or amount appropriated in the fiscal year for cost efficient strategies that ensure public ‘‘(2) has 1 or more prior convictions for a grants pursuant to this part. safety and enhance the successful reentry felony crime of violence involving the use or ‘‘SEC. 2958. REPORT. into communities of offenders who have attempted use of force against a person with ‘‘A State, Indian tribal government, or completed their prison sentences; the intent to cause death or serious bodily unit of local government that receives funds (4) establish intensive aftercare dem- harm. under this part during a fiscal year shall sub- onstration projects that address public safe- ‘‘SEC. 2954. ADMINISTRATION. mit to the Attorney General a description ty and ensure the special reentry needs of ju- ‘‘(a) CONSULTATION.—The Attorney General and an evaluation report on a date specified venile offenders by coordinating the re- shall consult with the Secretary of Health by the Attorney General regarding the effec- sources of juvenile correctional agencies, ju- and Human Services and any other appro- tiveness of this part. venile courts, juvenile parole agencies, law priate officials in carrying out this part. ‘‘SEC. 2959. TECHNICAL ASSISTANCE, TRAINING, enforcement agencies, social service pro- ‘‘(b) USE OF COMPONENTS.—The Attorney AND EVALUATION. viders, and local Workforce Investment General may utilize any component or com- ‘‘(a) TECHNICAL ASSISTANCE AND TRAIN- Boards; and ponents of the Department of Justice in car- ING.—The Attorney General may provide (5) rigorously evaluate these reentry pro- rying out this part. technical assistance and training in further- grams to determine their effectiveness in re- ‘‘(c) REGULATORY AUTHORITY.—The Attor- ance of the purposes of this part. ducing recidivism and promoting successful ney General may issue regulations and ‘‘(b) EVALUATIONS.—In addition to any offender reintegration. guidelines necessary to carry out this part. evaluation requirements that may be pre- scribed for grantees, the Attorney General CHAPTER 1—FEDERAL REENTRY ‘‘(d) APPLICATIONS.—In addition to any DEMONSTRATION PROJECTS other requirements that may be specified by may carry out or make arrangements for evaluations of programs that receive support SEC. 2511. FEDERAL COMMUNITY CORRECTIONS the Attorney General, an application for a CENTERS REENTRY PROJECT. grant under this part shall— under this part. (a) AUTHORITY AND ESTABLISHMENT OF FED- ‘‘(1) include a long-term strategy and de- ‘‘(c) ADMINISTRATION.—The technical as- sistance, training, and evaluations author- ERAL COMMUNITY CORRECTIONS CENTERS RE- tailed implementation plan; ENTRY PROJECT.—Subject to the availability ‘‘(2) explain the applicant’s inability to ized by this section may be carried out di- rectly by the Attorney General, in collabora- of appropriations to carry out this chapter, fund the program adequately without Fed- the Attorney General and the Director of the tion with the Secretary of Health and eral assistance; Administrative Office of the United States Human Services, or through grants, con- ‘‘(3) certify that the Federal support pro- Courts, shall establish the Federal Reentry tracts, or other cooperative arrangements vided will be used to supplement, and not project. The project shall involve appro- with other entities.’’. supplant, State, Indian tribal, and local priate prisoners released from the Federal (b) TECHNICAL AMENDMENT.—The table of sources of funding that would otherwise be prison population to a community correc- contents of title I of the Omnibus Crime Con- available; tions center during fiscal years 2003 and 2004, trol and Safe Streets Act of 1968 (42 U.S.C. ‘‘(4) identify related governmental or com- and a coordinated response by Federal agen- munity initiatives which complement or will 3711 et seq.) is amended by inserting after cies to assist participating prisoners, under be coordinated with the proposal; the matter relating to part DD the following: close monitoring and more seamless super- ‘‘(5) certify that there has been appropriate ‘‘PART EE—DRUG COURTS vision, in preparing for and adjusting to re- consultation with all affected agencies and ‘‘Sec. 2951. Grant authority. entry into the community.

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(b) PROJECT ELEMENTS.—The project au- lize, as appropriate and indicated, commu- out a period of confinement in a community thorized by subsection (a) shall include— nity corrections centers, home confinement, corrections facility and shall utilize inten- (1) a Reentry Review Team for each pris- appropriate monitoring technologies, and sive supervision, monitoring, and program- oner, consisting of representatives from the treatment and programming to promote ming to promote such parolees’ successful Bureau of Prisons, the United States Proba- more effective reentry into the community. reentry into the community. tion System, and the relevant community (b) PROJECT ELEMENTS.—The project au- (b) PROJECT ELEMENTS.—The project au- corrections center, who shall initially meet thorized by subsection (a) shall include— thorized by subsection (a) shall include— with the prisoner to develop a reentry plan (1) participation by Federal prisoners who (1) participation by appropriate high risk tailored to the needs of the prisoner and tak- have violated the terms of their release fol- parolees; ing into account the views of the victim ad- lowing a term of imprisonment; (2) use of community corrections facilities vocate and the family of the prisoner, if it is (2) use of community corrections centers and home confinement; safe for the victim, and will thereafter meet and home confinement that, together with (3) a Reentry Review Team that includes a regularly to monitor the prisoner’s progress the technology referenced in paragraph (5), victim witness professional for each parolee toward reentry and coordinate access to ap- will be part of a system of graduated levels which shall meet with the parolee, by video propriate reentry measures and resources; of supervision; conference or other means as appropriate, (2) drug testing, as appropriate; (3) substance abuse treatment and before the release of the parolee from the (3) a system of graduated levels of super- aftercare, mental and medical health treat- custody of the Federal Bureau of Prisons to vision within the community corrections ment and aftercare, vocational and basic develop a reentry plan that incorporates vic- centers to promote community safety, pro- educational training, and other program- tim impact information and is tailored to vide incentives for prisoners to complete the ming to promote effective reintegration into the needs of the parolee and which will reentry plan, including victim restitution, the community as needed; thereafter meet regularly to monitor the pa- and provide a reasonable method for impos- (4) involvement of a victim advocate and rolee’s progress toward reentry and coordi- ing immediate sanctions for a prisoner’s the family of the prisoner, if it is safe for the nate access to appropriate reentry measures minor or technical violation of the condi- victim(s), especially in domestic violence and resources; tions of participation in the project; cases, to be involved; (4) regular drug testing, as appropriate; (4) substance abuse treatment and (5) the use of monitoring technologies, as (5) a system of graduated levels of super- aftercare, mental and medical health treat- appropriate and indicated, to monitor and vision within the community corrections fa- ment and aftercare, vocational and basic supervise participating offenders in the com- cility to promote community safety, victim educational training, and other program- munity; restitution, to the extent practicable, pro- ming to promote effective reintegration into (6) a description of the methodology and vide incentives for prisoners to complete the the community as needed; outcome measures that will be used to evalu- reentry plan, and provide a reasonable meth- (5) to the extent practicable, the recruit- ate the program; and od for immediately sanctioning a prisoner’s ment and utilization of local citizen volun- (7) notification to victims on the status minor or technical violation of the condi- teers, including volunteers from the faith- and nature of a prisoner’s release, as appro- tions of participation in the project; based and business communities, to serve as priate. (6) substance abuse treatment and advisers and mentors to prisoners being re- (c) CONDITION OF SUPERVISED RELEASE.— aftercare, mental and medical health treat- leased into the community; During the demonstration project, appro- ment and aftercare, vocational and basic (6) a description of the methodology and priate offenders who are found to have vio- educational training, and other program- outcome measures that will be used to evalu- lated a term of supervised release and who ming to promote effective reintegration into ate the program; and will be subject to some additional term of su- the community as needed; (7) notification to victims on the status pervised release, may be designated to par- (7) the use of monitoring technologies, as and nature of offenders’ release, as appro- ticipate in the demonstration project. With appropriate; priate. respect to these offenders, the court may im- (8) to the extent practicable, the recruit- (c) PROBATION OFFICERS.—From funds pose additional conditions of supervised re- ment and utilization of local citizen volun- made available to carry out this Act, the Di- lease that each offender shall, as directed by teers, including volunteers from the faith- rector of the Administrative Office of the the probation officer, reside at a community based communities, to serve as advisers and United States Courts shall appoint 1 or more corrections center or participate in a pro- mentors to prisoners being released into the probation officers from each judicial district gram of home confinement, or both, and sub- community; and to the Reentry Demonstration project. Such mit to appropriate location verification (9) notification to victims on the status officers shall serve as reentry officers and monitoring. The court may also impose addi- and nature of a prisoner’s reentry plan. shall serve on the Reentry Review Teams. tional correctional intervention conditions (c) MANDATORY CONDITION OF PAROLE.—For (d) PROJECT DURATION.—The Community as appropriate. those offenders eligible to participate in the Corrections Center Reentry project shall (d) PROJECT DURATION.—The Federal High- demonstration project, the United States Pa- begin not later than 9 months following the Risk Offender Reentry Project shall begin role Commission shall impose additional availability of funds to carry out this sec- not later than 9 months following the avail- mandatory conditions of parole such that tion, and shall last 5 years. The Attorney ability of funds to carry out this section, and the offender when on parole shall, as directed General and the Director of the Administra- shall last 5 years. The Director of the Ad- by the community supervision officer, reside tive Office of the United States Courts may ministrative Office of the United States at a community corrections facility or par- extend the project for a period of up to 6 Courts may extend the project for a period of ticipate in a program of home confinement, months to enable participant prisoners to up to 6 months to enable participating pris- or both, submit to electronic and other re- complete their involvement in the project. oners to complete their involvement in the mote monitoring, and otherwise participate (e) SELECTION OF PRISONERS.—The Director project. in the project. of the Administrative Office of the United (e) SELECTION OF OFFENDERS.—The Direc- (d) PROGRAM DURATION.—The District of States Courts in consultation with the At- tor of the Administrative Office of the Columbia Intensive Supervision, Tracking torney General shall select an appropriate United States Courts shall select an appro- and Reentry Training Demonstration shall pool of prisoners from the Federal prison priate pool of offenders who are found by the begin not later than 6 months following the population scheduled to be released to com- court to have violated a term of supervised availability of funds to carry out this sec- munity correction centers in fiscal years 2003 release during fiscal year 2003 and 2004 to tion, and shall last 3 years. The Trustee of and 2004 to participate in the Reentry participate in the Federal High-Risk Of- the Court Services and Offender Supervision project. fender Reentry project. Agency of the District of Columbia may ex- (f) COORDINATION OF PROJECTS.—If appro- SEC. 2513. DISTRICT OF COLUMBIA INTENSIVE tend the project for a period of up to 6 priate, Community Corrections Center Re- SUPERVISION, TRACKING, AND RE- months to enable participating prisoners to entry project offenders who participated in ENTRY TRAINING (DC iSTART) DEM- complete their involvement in the project. the Enhanced In-Prison Vocational Assess- ONSTRATION. SEC. 2514. FEDERAL INTENSIVE SUPERVISION, ment and Training Demonstration project (a) AUTHORITY AND ESTABLISHMENT OF DEM- TRACKING, AND REENTRY TRAINING established by section 615 may be included. ONSTRATION PROJECT.—From funds made (FED iSTART) PROJECT. SEC. 2512. FEDERAL HIGH-RISK OFFENDER RE- available to carry out this Act, the Trustee (a) AUTHORITY AND ESTABLISHMENT OF ENTRY PROJECT. of the Court Services and Offender Super- PROJECT.—Subject to the availability of ap- (a) AUTHORITY AND ESTABLISHMENT OF FED- vision Agency of the District of Columbia, as propriations to carry out this section, the ERAL HIGH-RISK OFFENDER PROJECT.—Subject authorized by the National Capital Revital- Director of the Administrative Office of the to the availability of appropriations to carry ization and Self-Government Improvement United States Courts, in consultation with out this Act, the Director of the Administra- Act of 1997 (Public Law 105–33; 111 Stat. 712) the Attorney General, shall establish the tive Office of the United States Courts shall shall establish the District of Columbia In- Federal Intensive Supervision, Tracking and establish the Federal High-Risk Offender Re- tensive Supervision, Tracking and Reentry Reentry Training (FED iSTART) project. entry project. The project shall involve Fed- Training Demonstration (DC iSTART) The project shall involve appropriate high eral offenders under supervised release who project. The project shall involve high risk risk Federal offenders who are being released have violated the terms of their release fol- District of Columbia parolees who would oth- into the community without a period of con- lowing a term of imprisonment and shall uti- erwise be released into the community with- finement in a community corrections center.

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(b) PROJECT ELEMENTS.—The project au- tion 2515. Not later than 180 days after the (C) such sums as are necessary for fiscal thorized by subsection (a) shall include— end of the projects authorized by section year 2004; (1) participation by appropriate high risk 2515, the Attorney General shall report to (D) such sums as are necessary for fiscal Federal offenders; Congress on the effectiveness of the reentry year 2005; and (2) significantly smaller caseloads for pro- projects authorized by section 2515 on post- (E) such sums as are necessary for fiscal bation officers participating in the dem- release outcomes and recidivism. The report year 2006. onstration project; should address post-release outcomes and re- (3) To the Court Services and Offender Su- (3) substance abuse treatment and cidivism for a period of 3 years following re- pervision Agency of the District of Colum- aftercare, mental and medical health treat- lease from custody. The reports submitted bia, as authorized by the National Capital ment and aftercare, vocational and basic pursuant to this section shall be submitted Revitalization and Self-Government Im- educational training, and other program- to the Committees on the Judiciary of the provement Act of 1997 (Public Law 105–33; 111 ming to promote effective reintegration into House of Representatives and the Senate. Stat. 712)— the community as needed; and (c) DC iSTART.—Not later than 2 years (A) such sums as are necessary for fiscal (4) notification to victims on the status after enactment of this Act, the Executive year 2002; and nature of a prisoner’s reentry plan. Director of the corporation or institute au- (B) such sums as are necessary for fiscal (c) PROGRAM DURATION.—The Federal In- thorized by section 11281(2) of the National year 2003; and tensive Supervision, Tracking and Reentry Capital Revitalization and Self-Government (C) such sums as are necessary for fiscal Training Project shall begin not later than 9 Improvement Act of 1997 (Public Law 105–33; year 2004. months following the availability of funds to 111 Stat. 712) shall report to Congress on the progress of the demonstration project au- CHAPTER 2—STATE REENTRY GRANT carry out this section, and shall last 3 years. PROGRAMS The Director of the Administrative Office of thorized by section 2515. Not later than 1 year after the end of the demonstration SEC. 2521. AMENDMENTS TO THE OMNIBUS the United States Courts may extend the CRIME CONTROL AND SAFE project for a period of up to 6 months to en- project authorized by section 2513, the Exec- utive Director of the corporation or institute STREETS ACT OF 1968. able participating prisoners to complete (a) IN GENERAL.—Title I of the Omnibus authorized by section 11281(2) of the National their involvement in the project. Crime Control and Safe Streets Act of 1968 Capital Revitalization and Self-Government (d) SELECTION OF PRISONERS.—The Director (42 U.S.C. 3711 et seq.), as amended, is amend- Improvement Act of 1997 (Public Law 105–33; of the Administrative Office of the United ed by inserting after part EE the following 111 Stat. 712) shall report to Congress on the States Courts, in consultation with the At- new part: torney General, shall select an appropriate effectiveness of the reentry project author- ‘‘PART FF—OFFENDER REENTRY AND pool of Federal prisoners who are scheduled ized by section 2513 on post-release outcomes COMMUNITY SAFETY and recidivism. The report shall address to be released into the community without a ‘‘SEC. 2976. ADULT OFFENDER STATE AND LOCAL period of confinement in a community cor- post-release outcomes and recidivism for a REENTRY PARTNERSHIPS. rections center in fiscal years 2003 and 2004 period of 3 years following release from cus- ‘‘(a) GRANT AUTHORIZATION.—The Attorney to participate in the Federal Intensive Su- tody. The reports submitted pursuant to this General shall make grants of up to $1,000,000 pervision, Tracking and Reentry Training section shall be submitted to the Commit- to States, Territories, and Indian tribes, in project. tees on the Judiciary of the House of Rep- partnership with units of local government resentatives and the Senate. In the event SEC. 2515. FEDERAL ENHANCED IN-PRISON VOCA- and nonprofit organizations, for the purpose TIONAL ASSESSMENT AND TRAINING that the corporation or institute authorized of establishing adult offender reentry dem- AND DEMONSTRATION. by section 11281(2) of the National Capital onstration projects. Funds may be expended (a) AUTHORITY AND ESTABLISHMENT OF DEM- Revitalization and Self-Government Im- by the projects for the following purposes: ONSTRATION PROJECT.—From funds made provement Act of 1997 (Public Law 105–33; 111 ‘‘(1) oversight/monitoring of released of- available to carry out this section, the At- Stat. 712) is not in operation 1 year after en- fenders; torney General shall establish the Federal actment of this Act, the Director of the Na- ‘‘(2) substance abuse treatment and Enhanced In-Prison Vocational Assessment tional Institute of Justice shall prepare and aftercare, mental and medical health treat- and Training Demonstration project in se- submit the reports required by this section ment and aftercare, vocational and basic lected institutions. The project shall provide and may do so from funds made available to educational training, and other program- in-prison assessments of prisoners’ voca- the Court Services and Offender Supervision ming to promote effective reintegration into tional needs and aptitudes, enhanced work Agency of the District of Columbia, as au- the community as needed; thorized by the National Capital Revitaliza- skills development, enhanced release readi- ‘‘(3) convening community impact panels, tion and Self-Government Improvement Act ness programming, and other components as victim impact panels or victim impact edu- of 1997 (Public Law 105–33; 111 Stat. 712) to appropriate to prepare Federal prisoners for cational classes; and carry out this chapter. release and reentry into the community. ‘‘(4) establishing and implementing grad- (b) PROGRAM DURATION.—The Enhanced In- SEC. 2517. DEFINITIONS. uated sanctions and incentives. Prison Vocational Assessment and Training In this chapter: ‘‘(b) SUBMISSION OF APPLICATION.—In addi- Demonstration shall begin not later than 6 (1) APPROPRIATE HIGH RISK PAROLEES.—The tion to any other requirements that may be months following the availability of funds to term ‘‘appropriate high risk parolees’’ means specified by the Attorney General, an appli- carry out this section, and shall last 3 years. parolees considered by prison authorities— cation for a grant under this subpart shall— The Attorney General may extend the (A) to pose a medium to high risk of com- ‘‘(1) describe a long-term strategy and de- project for a period of up to 6 months to en- mitting a criminal act upon reentering the tailed implementation plan, including how able participating prisoners to complete community; and the jurisdiction plans to pay for the program their involvement in the project. (B) to lack the skills and family support after the Federal funding ends; SEC. 2516. RESEARCH AND REPORTS TO CON- network that facilitate successful reintegra- ‘‘(2) identify the governmental and com- GRESS. tion into the community. munity agencies that will be coordinated by (a) DIRECTOR OF THE ADMINISTRATIVE OF- (2) APPROPRIATE PRISONER.—The term ‘‘ap- this project; FICE OF THE UNITED STATES COURTS.—Not propriate prisoner’’ means a person who is ‘‘(3) certify that there has been appropriate later than 2 years after enactment of this considered by prison authorities— consultation with all affected agencies and Act, the Director of the Administrative Of- (A) to pose a medium to high risk of com- there will be appropriate coordination with fice of the United States Courts shall report mitting a criminal act upon reentering the all affected agencies in the implementation to Congress on the progress of the reentry community; and of the program, including existing commu- projects authorized by sections 2511, 2512, and (B) to lack the skills and family support nity corrections and parole; and 2514. Not later than 2 years after the end of network that facilitate successful reintegra- ‘‘(4) describe the methodology and outcome the reentry projects authorized by sections tion into the community. measures that will be used in evaluating the 2511, 2512, and 2514, the Director of the Ad- SEC. 2518. AUTHORIZATION OF APPROPRIATIONS. program. ministrative Office of the United States To carry out this chapter, there are au- ‘‘(c) APPLICANTS.—The applicants as des- Courts shall report to Congress on the effec- thorized to be appropriated, to remain avail- ignated under 2601(a)— tiveness of the reentry projects authorized able until expended, the following amounts: ‘‘(1) shall prepare the application as re- by sections 2511, 2512, and 2514 on post-re- (1) To the Federal Bureau of Prisons— quired under subsection 2601(b); and lease outcomes and recidivism. The report (A) such sums as are necessary for fiscal ‘‘(2) shall administer grant funds in accord- shall address post-release outcomes and re- year 2002; ance with the guidelines, regulations, and cidivism for a period of 3 years following re- (B) such sums as are necessary for fiscal procedures promulgated by the Attorney lease from custody. The reports submitted year 2003; and General, as necessary to carry out the pur- pursuant to this section shall be submitted (C) such sums as are necessary for fiscal poses of this part. to the Committees on the Judiciary of the year 2004. ‘‘(d) MATCHING FUNDS.—The Federal share House of Representatives and the Senate. (2) To the Federal Judiciary— of a grant received under this title may not (b) ATTORNEY GENERAL.—Not later than 2 (A) such sums as are necessary for fiscal exceed 75 percent of the costs of the project years after enactment of this Act, the Attor- year 2002; funded under this title unless the Attorney ney General shall report to Congress on the (B) such sums as are necessary for fiscal General waives, wholly or in part, the re- progress of the projects authorized by sec- year 2003; quirements of this section.

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‘‘(e) REPORTS.—Each entity that receives a General waives, wholly or in part, the re- ‘‘(e) DEFINITIONS.—In this section: grant under this part shall submit to the At- quirements of this section. ‘‘(1) SUBSTANCE ABUSE TREATMENT PRO- torney General, for each year in which funds ‘‘(e) REPORTS.—Each entity that receives a GRAM.—The term ‘substance abuse treatment from a grant received under this part is ex- grant under this part shall submit to the At- program’ means a course of individual or pended, a description and an evaluation re- torney General, for each year in which funds group activities or both, lasting for a period port at such time and in such manner as the from a grant received under this part is ex- of not less than 28 days that— Attorney General may reasonably require pended, a description and an evaluation re- ‘‘(A) includes residential or outpatient that contains— port at such time and in such manner as the treatment services for substance abuse and ‘‘(1) a summary of the activities carried Attorney General may reasonably require is operated by a public, nonprofit, or private out under the grant and an assessment of that contains: entity that meets all applicable State licen- whether such activities are meeting the ‘‘(1) a summary of the activities carried sure or certification requirements; and needs identified in the application funded out under the grant and an assessment of ‘‘(B) is directed at substance abuse prob- under this part; and whether such activities are meeting the lems and intended to develop cognitive, be- ‘‘(2) such other information as the Attor- needs identified in the application funded havioral, and other skills to address sub- ney General may require. under this part; and stance abuse and related problems and in- ‘‘(f) AUTHORIZATION OF APPROPRIATIONS.— ‘‘(2) such other information as the Attor- cludes drug testing of patients. ‘‘(1) IN GENERAL.—There are authorized to ney General may require. ‘‘(2) STATE.—The term ‘State’ has the be appropriated to carry out this section ‘‘(f) AUTHORIZATION OF APPROPRIATIONS.— meaning given it— such sums as are necessary in fiscal year ‘‘(1) IN GENERAL.—There are authorized to ‘‘(A) in section 419(5) of the Social Security 2002; and such sums as may be necessary for be appropriated to carry out this section Act, when referring to assistance provided each of the fiscal years 2003 and 2004. such sums as are necessary in fiscal year under a State program funded under part A ‘‘(2) LIMITATIONS.—Of the amount made 2002, and such sums as are necessary for each of title IV of the Social Security Act; and available to carry out this section in any fis- of the fiscal years 2003 and 2004. ‘‘(B) in section 3(m) of the Food Stamp Act cal year— ‘‘(2) LIMITATIONS.—Of the amount made of 1977, when referring to the food stamp pro- ‘‘(A) not more than 2 percent or less than available to carry out this section in any fis- gram (as defined in section 3(h) of the Food 1 percent may be used by the Attorney Gen- cal year— Stamp Act of 1977) or any State program car- eral for salaries and administrative ex- ‘‘(A) not more than 2 percent or less than ried out under the Food Stamp Act of 1977. penses; and 1 percent may be used by the Attorney Gen- ‘‘(3) SUCCESSFULLY COMPLETED.—The term ‘‘(B) not more than 3 percent or less than eral for salaries and administrative ex- ‘successfully completed’ means has com- 2 percent may be used for technical assist- penses; and pleted the prescribed course of drug treat- ance and training. ‘‘(B) not more than 3 percent or less than ment.’’. 2 percent may be used for technical assist- ‘‘SEC. 2977. JUVENILE OFFENDER STATE AND Subtitle F—Amendment to Foreign Narcotics LOCAL REENTRY PROGRAMS. ance and training. Kingpin Designation Act ‘‘(a) GRANT AUTHORIZATION.—The Attorney ‘‘SEC. 2978. STATE REENTRY PROGRAM RE- General shall make grants of up to $250,000 to SEARCH, DEVELOPMENT, AND EVAL- SEC. 2701. AMENDMENT TO FOREIGN NARCOTICS States, in partnership with local units of UATION. KINGPIN DESIGNATION ACT. governments or nonprofit organizations, for ‘‘(a) GRANT AUTHORIZATION.—The Attorney Section 805 of the Foreign Narcotics King- the purpose of establishing juvenile offender General shall make grants to conduct re- pin Designation Act (21 U.S.C. 1904) is reentry programs. Funds may be expended search on a range of issues pertinent to re- amended by striking subsection (f). by the projects for the following purposes: entry programs, the development and testing Subtitle G—Core Competencies in Drug ‘‘(1) providing returning juvenile offenders of new reentry components and approaches, Abuse Detection and Treatment with drug and alcohol testing and treatment selected evaluation of projects authorized in the preceding sections, and dissemination of SEC. 2801. AMENDMENT TO THE PUBLIC HEALTH and mental and medical health assessment SERVICE ACT. and services; information to the field. ‘‘(b) AUTHORIZATION OF APPROPRIATIONS.— Subpart 2 of part B of title V of the Public ‘‘(2) convening victim impact panels, re- Health Service Act (42 U.S.C. 290bb–21 et storative justice panels, or victim impact There are authorized to be appropriated to carry out this section such sums as are nec- seq.), as amended by the Youth Drug and educational classes for juvenile offenders; Mental Health Services Act (Public Law 106– ‘‘(3) oversight/monitoring of released juve- essary in fiscal year 2002, and such sums as are necessary to carry out this section in fis- 310), is further amended by adding at the end nile offenders; and the following: ‘‘(4) providing for the planning of reentry cal years 2003 and 2004.’’. (b) TECHNICAL AMENDMENT.—The table of ‘‘SEC. 519F. CORE COMPETENCIES. services when the youth is initially incarcer- contents of title I of the Omnibus Crime Con- ated and coordinating the delivery of com- ‘‘(a) PURPOSE.—The purpose of this section trol and Safe Streets Act of 1968 (42 U.S.C. munity-based services, such as education, is— 3711 et seq.), as amended, is amended by in- family involvement and support, and other ‘‘(1) to educate, train, motivate, and en- serting at the end the following: services as needed. gage key professionals to identify and inter- ‘‘(b) SUBMISSION OF APPLICATION.—In addi- ‘‘PART FF—OFFENDER REENTRY AND vene with children in families affected by tion to any other requirements that may be COMMUNITY SAFETY ACT substance abuse and to refer members of specified by the Attorney General, an appli- ‘‘Sec. 2976. Adult Offender State and Local such families to appropriate programs and cation for a grant under this subpart shall— Reentry Partnerships. services in the communities of such families; ‘‘(1) describe a long-term strategy and de- ‘‘Sec. 2977. Juvenile Offender State and ‘‘(2) to encourage professionals to collabo- tailed implementation plan, including how Local Reentry Programs. rate with key professional organizations rep- the jurisdiction plans to pay for the program ‘‘Sec. 2978. State Reentry Program Re- resenting the targeted professional groups, after the Federal funding ends; search, Development, and Eval- such as groups of educators, social workers, ‘‘(2) identify the governmental and com- uation.’’. faith community members, and probation of- munity agencies that will be coordinated by CHAPTER 3—CONTINUATION OF ficers, for the purposes of developing and im- this project; ASSISTANCE AND BENEFITS plementing relevant core competencies; and ‘‘(3) certify that there has been appropriate SEC. 2531. AMENDMENTS TO THE PERSONAL RE- ‘‘(3) to encourage professionals to develop consultation with all affected agencies and SPONSIBILITY AND WORK OPPOR- networks to coordinate local substance there will be appropriate coordination with TUNITY RECONCILIATION ACT OF abuse prevention coalitions. all affected agencies, including existing com- 1996. ‘‘(b) PROGRAM AUTHORIZED.—The Secretary munity corrections and parole, in the imple- Section 115 of the Personal Responsibility shall award grants to leading nongovern- mentation of the program; and Work Opportunity Reconciliation Act of mental organizations with an expertise in ‘‘(4) describe the methodology and outcome 1996 (21 U.S.C. 862a) is amended— aiding children of substance abusing parents measures that will be used in evaluating the (1) in subsection (d), by adding at the end or experience with community antidrug coa- program. the following: litions to help professionals participate in ‘‘(c) APPLICANTS.—The applicants as des- ‘‘(3) INAPPLICABILITY TO CERTAIN INDIVID- such coalitions and identify and help youth ignated under 2603(a)— UALS.—Subsection (a) shall not apply to an affected by familial substance abuse. ‘‘(1) shall prepare the application as re- individual who— ‘‘(c) DURATION OF GRANTS.—No organiza- quired under subsection 2603(b); and ‘‘(A) has successfully completed a sub- tion shall receive a grant under subsection ‘‘(2) shall administer grant funds in accord- stance abuse treatment program and has not (c) for more than 5 consecutive years. ance with the guidelines, regulations, and committed a subsequent offense described in ‘‘(d) APPLICATION.—Any organization desir- procedures promulgated by the Attorney subsection (a); or ing a grant under subsection (c) shall prepare General, as necessary to carry out the pur- ‘‘(B) is enrolled in a substance abuse treat- and submit an application to the Secretary poses of this part. ment program and is fully complying with at such time, in such manner, and con- ‘‘(d) MATCHING FUNDS.—The Federal share the terms and conditions of the program.’’; taining such information as the Secretary of a grant received under this title may not and may require, including a plan for the evalua- exceed 75 percent of the costs of the project (2) by striking subsection (e) and inserting tion of the project involved, including both funded under this title unless the Attorney the following: process and outcome evaluation, and the

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00251 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S14024 CONGRESSIONAL RECORD — SENATE December 20, 2001 submission of the evaluation at the end of tial substance abuse treatment programs es- abuse issues and learn to act in their own the project period. tablished under this subtitle, which shall be best interests, as well as in the best interests ‘‘(e) USE OF FUNDS.—Grants awarded under characterized by— of their peers and families. subsection (c) shall be used to— (1) the self-help dynamic, requiring youth SEC. 2911. AUTHORIZATION OF APPROPRIATIONS. ‘‘(1) develop core competencies with var- to participate actively in their own treat- (a) IN GENERAL.—Subject to appropria- ious professional groups that the profes- ment; tions, there are authorized be appropriated sionals can use in identifying and referring (2) the role of mutual support and the to carry out this subtitle— children affected by substance abuse; therapeutic importance of the peer therapy (1) such sums as are necessary for fiscal ‘‘(2) widely disseminate the competencies group; year 2002; and to professionals and professional organiza- (3) a strong focus on family involvement (2) such sums as may be necessary for 2003 tions through publications and journals that and family strengthening; and 2004. are widely read and respected; (4) a clearly articulated value system em- (b) SUPPLEMENT AND NOT SUPPLANT.— ‘‘(3) develop training modules around the phasizing both individual responsibility and Grant amounts received under this subtitle competencies; and responsibility for the community; and shall be used to supplement, and not sup- ‘‘(4) develop training modules for commu- (5) an emphasis on development of positive plant, non-Federal funds that would other- nity coalition leaders to enable such leaders social skills. wise be available for activities funded under to engage professionals from identified SEC. 2908. REPORT BY PROVIDER. this subtitle. groups at the local level in community-wide Not later than 1 year after receiving a Subtitle I—Other Matters prevention and intervention efforts. grant under this subtitle, and annually SEC. 2951. AMENDMENT TO CONTROLLED SUB- ‘‘(f) DEFINITION.—In this section, the term thereafter, a treatment provider shall pre- STANCES ACT. ‘professional’ includes a physician, student pare and submit to the Secretary a report Section 303(g)(2)(I) of the Controlled Sub- assistance professional, social worker, youth describing the services provided pursuant to stances Act is amended by striking ‘‘on the and family social service agency counselor, this subtitle. date of enactment’’ and all that follows Head Start teacher, clergy, elementary and SEC. 2909. REPORT BY SECRETARY. through ‘‘such drugs,’’ and inserting ‘‘on the secondary school teacher, school counselor, (a) IN GENERAL.—Not later than 3 months date of approval by the Food and Drug Ad- juvenile justice worker, child care provider, after receiving all reports by providers under ministration of a drug in schedule III, IV, or or a member of any other professional group section 2908, and annually thereafter, the V, a State may not preclude a practitioner in which the members provide services to or Secretary shall prepare and submit a report from dispensing or prescribed such drug, or interact with children, youth, or families. containing information described in sub- combination of such drugs’’. ‘‘(g) AUTHORIZATION OF APPROPRIATIONS.— SEC. 2952. STUDY OF METHAMPHETAMINE There are authorized to be appropriated to section (b) to— (1) the Committee on Health, Education, TREATMENT. carry out this section, such sums as are nec- Section 3633 of the Methamphetamine essary for fiscal year 2002, and such sums as Labor, and Pensions of the Senate; (2) the Committee on Appropriations of the Anti-Proliferation Act of 2000 (114 Stat. 1236) may be necessary for each of fiscal years 2003 is amended by striking ‘‘the Institute of and 2004.’’. Senate; (3) the United States Senate Caucus on Medicine of the National Academy of Subtitle H—Adolescent Therapeutic International Narcotics Control; Sciences’’ and inserting ‘‘the National Insti- Community Treatment Programs (4) the Committee on Commerce of the tute on Drug Abuse’’. SEC. 2901. PROGRAM AUTHORIZED. House of Representatives; TITLE III—NATIONAL COMPREHENSIVE The Secretary shall award competitive (5) the Committee on Appropriations of the CRIME-FREE COMMUNITIES ACT grants to treatment providers who admin- House of Representatives; and SEC. 3001. SHORT TITLE. ister treatment programs to enable such pro- (6) the Committee on Government Reform This title may be cited as the ‘‘National viders to establish adolescent residential of the House of Representatives. Comprehensive Crime-Free Communities substance abuse treatment programs that (b) CONTENT.—The report described in sub- Act’’. provide services for individuals who are be- section (a) shall— SEC. 3002. PROGRAM ADMINISTRATION. tween the ages of 14 and 21. (1) outline the services provided by pro- (a) ATTORNEY GENERAL RESPONSIBILITIES.— SEC. 2902. PREFERENCE. viders pursuant to this section; In carrying out this title, the Attorney Gen- In awarding grants under this subtitle, the (2) evaluate the effectiveness of such serv- eral shall— Secretary shall consider the geographic loca- ices; (1) make and monitor grants to grant re- tion of each treatment provider and give (3) identify the geographic distribution of cipients; preference to such treatment providers that all treatment centers provided pursuant to (2) provide, including through organiza- are geographically located in such a manner this section, and evaluate the accessibility of tions such as the National Crime Prevention as to provide services to addicts from non- such centers for addicts from rural areas and Council, technical assistance and training, metropolitan areas. small towns; and data collection, and dissemination of infor- SEC. 2903. DURATION OF GRANTS. (4) make recommendations to improve the mation on state-of-the-art research-ground- For awards made under this subtitle, the programs carried out pursuant to this sec- ed practices that the Attorney General de- period during which payments are made may tion. termines to be effective in preventing and re- not exceed 5 years. SEC. 2910. DEFINITIONS. ducing crime, violence, and drug abuse; SEC. 2904. RESTRICTIONS. In this subtitle: (3) provide for the evaluation of this title A treatment provider receiving a grant (1) ADOLESCENT RESIDENTIAL SUBSTANCE and assess the effectiveness of comprehen- under this subtitle shall not use any amount ABUSE TREATMENT PROGRAM.—The term ‘‘ado- sive planning in the prevention of crime, vio- of the grant for land acquisition or a con- lescent residential substance abuse treat- lence, and drug abuse; struction project. ment program’’ means a program that pro- (4) provide for a comprehensive commu- SEC. 2905. APPLICATION. vides a regimen of individual and group ac- nications strategy to inform the public and A treatment provider that desires a grant tivities, lasting ideally not less than 12 State and local governments of programs au- under this subtitle shall submit an applica- months, in a community-based residential thorized by this title and their purpose and tion to the Secretary at such time, in such facility that provides comprehensive services intent; manner, and containing such information as tailored to meet the needs of adolescents and (5) establish a National Crime-Free Com- the Secretary may require. designed to return youth to their families in munities Commission to advise, consult SEC. 2906. USE OF FUNDS. order that such youth may become capable with, and make recommendations to the At- A treatment provider that receives a grant of enjoying and supporting positive, produc- torney General concerning activities carried under this subtitle shall use those funds to tive, drug-free lives. out under this Act; provide substance abuse services for adoles- (2) SECRETARY.—The term ‘‘Secretary’’ (6) establish the National Center for Jus- cents, including— means the Secretary of Health and Human tice Planning in a national organization rep- (1) a thorough psychosocial assessment; Services. resenting State criminal justice executives (2) individual treatment planning; (3) THERAPEUTIC COMMUNITY.—The term that will— (3) a strong education component integral ‘‘Therapeutic Community’’ means a highly (A) provide technical assistance and train- to the treatment regimen; structured residential treatment facility ing to State criminal justice agencies in im- (4) life skills training; that— plementing policies and programs to facili- (5) individual and group counseling; (A) employs a treatment methodology; tate community-based strategic planning (6) family services; (B) relies on self-help methods and group processes; (7) daily work responsibilities; and process, a view of drug abuse as a disorder af- (B) establish a collection of best practices (8) community-based aftercare, providing 6 fecting the whole person, and a comprehen- for statewide community-based criminal jus- months of treatment following discharge sive approach to recovery; tice planning; and from a residential facility. (C) maintains a strong educational compo- (C) consult with appropriate organizations, SEC. 2907. TREATMENT TYPE. nent; and including the National Crime Prevention The Therapeutic Community model shall (D) carries out activities that are designed Council, in providing necessary training to be used as a basis for all adolescent residen- to help youths address alcohol or other drug States.

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(b) AUTHORIZATION OF APPROPRIATIONS.— (A) demonstrate how the proposed program (3) ACCOUNTABILITY.—The State shall be re- There are authorized to be appropriated will prevent crime, violence, and substance quired to develop and report in its plan rel- $5,000,000 for the fiscal years 2002 through abuse; evant performance targets and measures for 2006, including $4,500,000 to assist States and (B) certify that the program is based on the goals and objectives to track changes in communities in providing training, technical nationally recognized research standards crime, violence, and substance abuse. assistance, and setting benchmarks, and that have been tested in local communities; (4) CONSULTATION.—The State shall form a $500,000 to establish and operate the National (C) collaborate and obtain the approval and State crime free communities commission Center for Justice Planning. support of the State agency designated by that includes representatives of State and (c) PROGRAM ADMINISTRATION.—Up to 3 per- the Governor of that State in the develop- local government, and community leaders cent of program funds appropriated for Com- ment of the comprehensive prevention plan who will provide advice and recommenda- munity Grants and State Capacity Building of the applicant; tions on relevant community goals and ob- grants may be used by the Attorney General (D) demonstrate the ability to develop a jectives, and performance targets and meas- to administer this program. local Crime-Free Communities Commission, ures. SEC. 3003. FOCUS. including such groups as Federal, State, and (d) REQUIREMENTS.— Programs carried out by States and local local criminal justice personnel, law enforce- (1) TRAINING AND TECHNICAL ASSISTANCE.— communities under this title shall include a ment, schools, youth organizations, religious The State shall provide training and tech- specialized focus on neighborhoods and and other community organizations, busi- nical assistance, including through such schools disproportionately affected by crime, ness and health care professionals, parents, groups as the National Crime Prevention violence, and drug abuse. State, local, or tribal governmental agen- Council, to assist local communities in de- SEC. 3004. DEFINITIONS. cies, and other organizations; and veloping Crime Prevention Plans that reflect In this title, the term ‘‘crime prevention (E) submit a plan describing how the appli- statewide strategic goals and objectives, and plan’’ means a strategy that has measurable cant will maintain the program without Fed- performance targets and measures. long-term goals and short-term objectives eral funds following the fifth year of the pro- (2) REPORTS.—The State shall provide a re- that— gram. port on its statewide strategic plan to the (1) address the problems of crime, includ- (2) CONSIDERATION.—The Attorney General Attorney General, including information ing terrorism, violence, and substance abuse may give additional consideration in the about— for a jurisdiction, developed through an grant review process to an applicant with an (A) involvement of relevant State-level interactive and collaborative process that officially designated Weed and Seed site agencies to assist communities in the devel- includes senior representatives of law en- seeking to expand from a neighborhood to opment and implementation of their Crime forcement and the local chief executive’s of- community-wide strategy. Prevention Plans; fice as well as representatives of such groups (3) RURAL COMMUNITIES.—The Attorney (B) support for local applications for Com- as other agencies of local government (in- General shall give additional consideration munity Grants; and cluding physical and social service pro- in the grant review process to an applicant (C) community progress toward reducing viders), nonprofit organizations, business from a rural area. crime, violence, and substance abuse. leaders, religious leaders, and representa- (d) WAIVERS FOR MATCHING REQUIREMENT.— (3) CERTIFICATION.—Beginning in the third tives of community and neighborhood A community with an officially designated year of the program, States must certify groups; Weed and Seed site may be provided a waiver that the local grantee’s project funded under (2) establishes interim and final bench- by the Attorney General for all matching re- the community grant is generally consistent mark measures for each prevention objective quirements under this section based on dem- with statewide strategic goals and objec- and strategy; and onstrated financial hardship. tives, and performance targets and measures. (3) includes a monitoring and assessment (e) AUTHORIZATION OF APPROPRIATIONS.— (e) AUTHORIZATION OF APPROPRIATIONS.— mechanism for implementation of the plan. There are authorized to be appropriated There are authorized to be appropriated SEC. 3005. COMMUNITY GRANTS. $25,000,000 to carry out this section for the $20,000,000 to carry out this section for the (a) GRANTS AUTHORIZED.— fiscal years 2002 through 2006. fiscal years 2002 through 2006. (1) IN GENERAL.—The Attorney General SEC. 3006. STATE CAPACITY BUILDING GRANTS. TITLE IV—SAFEGUARDING THE INTEG- shall award grants to at least 100 commu- (a) GRANTS AUTHORIZED.—The Attorney RITY OF THE CRIMINAL JUSTICE SYS- nities or an organization organized under General shall award grants to each State TEM section 501(c)(3) of the Internal Revenue Code criminal justice agency, Byrne agency, or SEC. 4001. INCREASING THE PENALTY FOR USING of 1986 that is the designee of a community, other agency as designated by the Governor PHYSICAL FORCE TO TAMPER WITH including 1 in each State, in an amount not of that State and approved by the Attorney WITNESSES, VICTIMS, OR INFORM- to exceed $250,000 per year for the planning, General, in an amount not to exceed $400,000 ANTS. evaluation, and implementation of a pro- per year to develop State capacity to assist (a) IN GENERAL.—Section 1512 of title 18, gram designed to prevent and reduce crime, local communities in the prevention and re- United States Code, is amended— violence, and substance abuse. duction of crime, violence, and substance (1) in subsection (a)— (2) LIMITATION.—Of the amount of a grant abuse. (A) in paragraph (1), by striking ‘‘as pro- awarded under this section in any given (b) USE OF FUNDS.— vided in paragraph (2)’’ and inserting ‘‘as year, not more than $125,000 may be used for (1) IN GENERAL.—A State capacity building provided in paragraph (3)’’; the planning or evaluation component of the grant shall be used to develop a statewide (B) by redesignating paragraph (2) as para- program. strategic plan as defined in subsection (c) to graph (3); (b) PROGRAM IMPLEMENTATION COMPO- prevent and reduce crime, violence, and sub- (C) by inserting after paragraph (1) the fol- NENT.— stance abuse. lowing: (1) IN GENERAL.—A community grant under (2) PERMISSIVE USE.—A State may also use ‘‘(2) Whoever uses physical force or the this section may be used by a community to its grant to provide training and technical threat of physical force against any person, support specific programs or projects that assistance to communities and promote in- or attempts to do so, with intent to— are consistent with the local Crime Preven- novation in the development of policies, ‘‘(A) influence, delay, or prevent the testi- tion Plan. technologies, and programs to prevent and mony of any person in an official proceeding; (2) AVAILABILITY.—A grant shall be award- reduce crime. ‘‘(B) cause or induce any person to— ed under this paragraph to a community (3) DATA COLLECTION.—A State may use up ‘‘(i) withhold testimony, or withhold a that has developed a specific Crime Preven- to 5 percent of the grant to assist grant re- record, document, or other object, from an tion Plan and program outline. cipients in collecting statewide data related official proceeding; (3) MATCHING REQUIREMENT.—The Federal to the costs of crime, violence, and substance ‘‘(ii) alter, destroy, mutilate, or conceal an share of a grant under this paragraph shall abuse for purposes of supporting the state- object with intent to impair the integrity or not exceed— wide strategic plan. availability of the object for use in an offi- (A) 80 percent in the first year; (c) STATEWIDE STRATEGIC PREVENTION cial proceeding; (B) 60 percent in the second year; PLAN.— ‘‘(iii) evade legal process summoning that (C) 40 percent in the third year; (1) IN GENERAL.—A statewide strategic pre- person to appear as a witness, or to produce (D) 20 percent in the fourth year; and vention plan shall be used by the State to as- a record, document, or other object, in an of- (E) 20 percent in the fifth year. sist local communities, both directly and ficial proceeding; or (4) DATA SET ASIDE.—A community may through existing State programs and serv- ‘‘(iv) be absent from an official proceeding use up to 5 percent of the grant to assist it ices, in building comprehensive, strategic, to which that person has been summoned by in collecting local data related to the costs and innovative approaches to reducing legal process; or of crime, violence, and substance abuse for crime, violence, and substance abuse based ‘‘(C) hinder, delay, or prevent the commu- purposes of supporting its Crime Prevention on local conditions and needs. nication to a law enforcement officer or Plan. (2) GOALS.—The plan must contain state- judge of the United States of information re- (c) APPLICATION.— wide long-term goals and measurable annual lating to the commission or possible com- (1) IN GENERAL.—An applicant for a com- objectives for reducing crime, violence, and mission of a Federal offense or a violation of munity grant under this section shall— substance abuse. conditions of probation, supervised release,

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parole, or release pending judicial pro- ‘‘(b) DEFENSES; OBJECTIONS.—Nothing in 18, United States Code, which relates to fi- ceedings; this section shall preclude the District Court nancial transactions is amended by inserting shall be punished as provided in paragraph from considering any defense or objection, ‘‘of 1979’’ after ‘‘Export Administration Act’’. (3).’’; and other than statute of limitations, to the (6) ELIMINATION OF TYPO.—Section 1992(b) (D) in paragraph (3), as redesignated— prosecution of the counts reinstated under of title 18, United States Code, is amended by (i) by striking ‘‘and’’ at the end of subpara- subsection (a).’’. striking ‘‘term or years’’ and inserting graph (A); and (b) TECHNICAL AND CONFORMING AMEND- ‘‘term of years’’. (ii) by striking subparagraph (B) and in- MENT.—Chapter 213 of title 18, United States (7) SPELLING CORRECTION.—Section 2339A(a) serting the following: Code, is amended in the table of sections by of title 18, United States Code, is amended by ‘‘(B) in the case of— adding at the end the following new item: striking ‘‘or an escape’’ and inserting ‘‘of an ‘‘(i) an attempt to murder; or ‘‘3296. Counts dismissed pursuant to a plea escape’’. ‘‘(ii) the use or attempted use of physical agreement.’’. (8) SECTION 3553.—Section 3553(e) of title 18, United States Code, is amended by inserting force against any person; SEC. 4004. APPEALS FROM CERTAIN DISMISSALS. ‘‘a’’ before ‘‘minimum’’. imprisonment for not more than 20 years; Section 3731 of title 18, United States Code, (9) MISSPELLING IN SECTION 205.—Section and is amended by inserting ‘‘, or any part there- 205(d)(1)(B) of title 18, United States Code, is ‘‘(C) in the case of the threat of use of of’’ after ‘‘as to any one or more counts’’. physical force against any person, imprison- amended by striking ‘‘groups’s’’ and insert- ment for not more than 10 years.’’; SEC. 4005. CLARIFICATION OF LENGTH OF SU- ing ‘‘group’s’’. PERVISED RELEASE TERMS IN CON- ONFORMING CHANGE AND INSERTING (2) in subsection (b), by striking ‘‘or phys- TROLLED SUBSTANCE CASES. (10) C MISSING WORD IN SECTION 709.—The paragraph ical force’’; and (a) DRUG ABUSE PENALTIES.—Subpara- in section 709 of title 18, United States Code, (3) by adding at the end the following: graphs (A), (B), (C), and (D) of section that begins with ‘‘A person who’’ is amend- ‘‘(j) Whoever conspires to commit any of- 401(b)(1) of the Controlled Substances Act (21 ed— fense under this section shall be subject to U.S.C. 841(b)(1)) are amended by striking (A) by striking ‘‘A person who’’ and insert- the same penalties as those prescribed for ‘‘Any sentence’’ and inserting ‘‘Notwith- the offense the commission of which was the ing ‘‘Whoever’’; and standing section 3583 of title 18, any sen- object of the conspiracy.’’. (B) by inserting ‘‘or’’ after the semicolon tence’’. (b) RETALIATING AGAINST A WITNESS.—Sec- at the end. (b) PENALTIES FOR DRUG IMPORT AND EX- tion 1513 of title 18, United States Code, is (11) ERROR IN LANGUAGE BEING STRICKEN.— PORT.—Section 1010(b) of the Controlled Sub- amended by adding at the end the following: Effective on the date of its enactment, sec- stances Import and Export Act (21 U.S.C. ‘‘(e) Whoever conspires to commit any of- tion 726(2) of the Antiterrorism and Effective 960(b)) is amended— fense under this section shall be subject to Death Penalty Act of 1996 (Public Law 104– (1) in paragraphs (1), (2), and (3), by strik- the same penalties as those prescribed for 132) is amended— ing ‘‘Any sentence’’ and inserting ‘‘Notwith- the offense the commission of which was the (A) in subparagraphs (C) and (E), by strik- object of the conspiracy.’’. standing section 3583 of title 18, any sen- ing ‘‘section’’ the first place it appears; and (c) CONFORMING AMENDMENTS.— tence’’; and (B) in subparagraph (G), by striking ‘‘relat- (1) WITNESS TAMPERING.—Section 1512 of (2) in paragraph (4), by inserting ‘‘notwith- ing to’’ the first place it appears. title 18, United States Code, is amended in standing section 3583 of title 18,’’ before ‘‘in (b) MARGINS, PUNCTUATION, AND SIMILAR subsections (b)(3) and (c)(2) by inserting ‘‘su- addition to such term of imprisonment’’. ERRORS.— pervised release,’’ after ‘‘probation’’. SEC. 4006. AUTHORITY OF COURT TO IMPOSE A (1) MARGIN ERROR.—Section 1030(c)(2) of (2) RETALIATION AGAINST A WITNESS.—Sec- SENTENCE OF PROBATION OR SU- title 18, United States Code, is amended so tion 1513 of title 18, United States Code, is PERVISED RELEASE WHEN REDUC- that the margins of subparagraph (B) and ING A SENTENCE OF IMPRISONMENT amended in subsections (a)(1)(B) and (b)(2) by IN CERTAIN CASES. each of its clauses, are moved 2 ems to the inserting ‘‘supervised release,’’ after ‘‘proba- Section 3582(c)(1)(A) of title 18, United left. ORRECTING CAPITALIZATION IN LAN- tion’’. States Code, is amended by inserting ‘‘(and (2) C GUAGE TO BE STRICKEN.—Effective on the date SEC. 4002. CORRECTION OF ABERRANT STATUTES may impose a term of probation or super- of its enactment, section 607(g)(2) of the Eco- TO PERMIT IMPOSITION OF BOTH A vised release with or without conditions that FINE AND IMPRISONMENT. nomic Espionage Act of 1996 is amended by does not exceed the unserved portion of the (a) IN GENERAL.—Title 18 of the United striking ‘‘territory’’ and inserting ‘‘Terri- original term of imprisonment)’’ after ‘‘may States Code is amended— tory’’. reduce the term of imprisonment’’. (1) in section 401, by inserting ‘‘or both,’’ (3) CORRECTING PARAGRAPHING.—The mate- after ‘‘fine or imprisonment,’’; SEC. 4007. CLARIFICATION THAT MAKING RES- rial added to section 521(a) of title 18, United (2) in section 1705, by inserting ‘‘, or both’’ TITUTION IS A PROPER CONDITION States Code, by section 607(q) of the Eco- OF SUPERVISED RELEASE. after ‘‘years’’; and nomic Espionage Act of 1996 is amended to Subsections (c) and (e) of section 3583 of (3) in sections 1916, 2234, and 2235, by insert- appear as a paragraph indented 2 ems from title 18, United States Code, are amended by ing ‘‘, or both’’ after ‘‘year’’. the left margin. striking ‘‘and (a)(6) and inserting ‘‘(a)(6), and (b) IMPOSITION BY MAGISTRATE.—Section (4) SUBSECTION PLACEMENT CORRECTION.— (a)(7)’’. 636 of title 28, United States Code, is amend- Section 1513 of title 18, United States Code, ed— TITLE V—CRIMINAL LAW TECHNICAL is amended by transferring subsection (d) so (1) in subsection (e)(2), by inserting ‘‘, or AMENDMENTS ACT OF 2001 that it appears following subsection (c). both,’’ after ‘‘fine or imprisonment’’; and SEC. 5001. SHORT TITLE. (5) CORRECTION TO ALLOW FOR INSERTION OF (2) in subsection (e)(3), by inserting ‘‘or This title may be cited as the ‘‘Criminal NEW SUBPARAGRAPH AND CORRECTION OF ERRO- both,’’ after ‘‘fine or imprisonment,’’. Law Technical Amendments Act of 2001’’. NEOUS INDENTATION.—Section 1956(c)(7) of SEC. 4003. REINSTATEMENT OF COUNTS DIS- SEC. 5002. TECHNICAL AMENDMENTS RELATING title 18, United States Code, is amended— MISSED PURSUANT TO A PLEA TO CRIMINAL LAW AND PROCEDURE. (A) in subparagraph (B)(ii), by moving the AGREEMENT. (a) MISSING AND INCORRECT WORDS.— margin 2 ems to the right; (a) IN GENERAL.—Chapter 213 of title 18, (1) CORRECTION OF GARBLED SENTENCE.— (B) by striking ‘‘or’’ at the end of subpara- United States Code, is amended by adding at Section 510(c) of title 18, United States Code, graph (D); the end the following: is amended by striking ‘‘fine of under this (C) by striking the period at the end of sub- ‘‘§ 3296. Counts dismissed pursuant to a plea title’’ and inserting ‘‘fine under this title’’. paragraph (E) and inserting ‘‘; or’’; and agreement (2) INSERTION OF MISSING WORDS.—Section (D) in subparagraph (F)— ‘‘(a) IN GENERAL.—Notwithstanding any 981(d) of title 18, United States Code, is (i) by striking ‘‘Any’’ and inserting ‘‘any’’; other provision of this chapter, any counts of amended by striking ‘‘proceeds from the sale and an indictment or information that are dis- of this section’’ and inserting ‘‘proceeds from (ii) by striking the period at the end and missed pursuant to a plea agreement shall be the sale of such property under this section’’. inserting a semicolon. reinstated by the District Court if— (3) CORRECTION OF INCORRECT WORD.—Sec- (6) CORRECTION OF CONFUSING SUBDIVISION ‘‘(1) the counts sought to be reinstated tions 1425 through 1427, 1541 through 1544 and DESIGNATION.—Section 1716 of title 18, United were originally filed within the applicable 1546(a) of title 18, United States Code, are States Code, is amended— limitations period; each amended by striking ‘‘to facility’’ and (A) in the first undesignated paragraph, by ‘‘(2) the counts were dismissed pursuant to inserting ‘‘to facilitate’’. inserting ‘‘(j)(1)’’ before ‘‘Whoever’’; a plea agreement approved by the District (4) CORRECTING ERRONEOUS AMENDATORY (B) in the second undesignated paragraph— Court under which the defendant pled guilty LANGUAGE ON EXECUTED AMENDMENT.—Effec- (i) by striking ‘‘not more than $10,000’’ and to other charges; tive on the date of the enactment of Public inserting ‘‘under this title’’; and ‘‘(3) the guilty plea was subsequently va- Law 103–322, section 60003(a)(13) of such pub- (ii) by inserting ‘‘(2)’’ at the beginning of cated on the motion of the defendant; and lic law is amended by striking ‘‘$1,000,000 or that paragraph; ‘‘(4) the United States moves to reinstate imprisonment’’ and inserting ‘‘$1,000,000 and (C) by inserting ‘‘(3)’’ at the beginning of the dismissed counts within 60 days of the imprisonment’’. the third undesignated paragraph; and date on which the order vacating the plea be- (5) CORRECTION OF REFERENCE TO SHORT (D) by redesignating subsection (j) as sub- comes final. TITLE OF LAW.—That section 2332d(a) of title section (k).

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(7) PUNCTUATION CORRECTION IN SECTION (1) IN TITLE 18, UNITED STATES CODE.— (6) SECTION 4104.—Section 4104(d) of title 18, 1091.—Section 1091(b)(1) of title 18, United (A) IN SECTION 492.—Section 492 of title 18, United States Code, is amended by striking States Code, is amended by striking ‘‘sub- United States Code, is amended by striking ‘‘section 3653 of this title and rule 32(f) of’’ section (a)(1),’’ and inserting ‘‘subsection ‘‘not more than $100’’ and inserting ‘‘under and inserting ‘‘section 3565 of this title and (a)(1)’’. this title’’. the applicable provisions of’’. (8) PUNCTUATION CORRECTION IN SECTION (B) IN SECTION 665.—Section 665(c) of title (7) ERROR IN AMENDATORY LANGUAGE.—Ef- 2311.—Section 2311 of title 18, United States 18, United States Code, is amended by strik- fective on the date of its enactment, section Code, is amended by striking the period after ing ‘‘a fine of not more than $5,000’’ and in- 583 of the Foreign Operations, Export Fi- ‘‘carcasses thereof’’ the second place that serting ‘‘a fine under this title’’. nancing, and Related Programs Appropria- term appears and inserting a semicolon. (C) IN SECTIONS 1924, 2075, 2113(b), AND 2236.— tions Act, 1998 (111 Stat. 2436) is amended by (9) SYNTAX CORRECTION.—Section 115(b)(2) (i) Section 1924(a) of title 18, United States striking ‘‘Section 2401’’ and inserting ‘‘Sec- of title 18, United States Code, is amended by Code, is amended by striking ‘‘not more than tion 2441’’. striking ‘‘, attempted kidnapping, or con- $1,000,’’ and inserting ‘‘under this title’’. (8) ERROR IN CROSS REFERENCE TO COURT spiracy to kidnap of a person’’ and inserting (ii) Sections 2075 and 2113(b) of title 18, RULES.—The first sentence of section 3593(c) ‘‘or attempted kidnapping of, or a conspiracy United States Code, are each amended by of title 18, United States Code, is amended by to kidnap, a person’’. striking ‘‘not more than $1,000’’ and insert- striking ‘‘rule 32(c)’’ and inserting ‘‘rule 32’’. (10) CORRECTING CAPITALIZATION IN SECTION ing ‘‘under this title’’. (9) SECTION 1836.—Section 1836 of title 18, 982.—Section 982(a)(8) of title 18, United (iii) Section 2236 of title 18, United States United States Code, is amended— States Code, is amended by striking ‘‘Court’’ Code, is amended by inserting ‘‘under this (A) in subsection (a), by striking ‘‘this sec- and inserting ‘‘court’’. title’’ after ‘‘warrant, shall be fined’’, and by tion’’ and inserting ‘‘this chapter’’; and (11) PUNCTUATION CORRECTIONS IN SECTION striking ‘‘not more than $1,000’’. (B) in subsection (b), by striking ‘‘this sub- 1029.—Section 1029 of title 18, United States (D) IN SECTION 372 AND 752.—Sections 372 and section’’ and inserting ‘‘this section’’. Code, is amended— 752(a) of title 18, United States Code, are (10) CORRECTION OF ERRONEOUS CITE IN (A) in subsection (c)(1)(A)(ii), by striking each amended by striking ‘‘not more than CHAPTER 119.—Section 2510(10) of title 18, ‘‘(9),’’ and inserting ‘‘(9)’’; and $5,000’’ and inserting ‘‘under this title’’. United States Code, is amended by striking (B) in subsection (e), by adding a semicolon (E) IN SECTION 924(e)(1).—Section 924(e)(1) of ‘‘shall have’’ and all that follows through at the end of paragraph (8). title 18, United States Code, is amended by ‘‘United States Code;’’ and inserting ‘‘has (12) CORRECTIONS OF CONNECTORS AND PUNC- striking ‘‘not more than $25,000’’ and insert- the meaning given that term in section 3 of TUATION IN SECTION 1030.—Section 1030 of title ing ‘‘under this title’’. the Communications Act of 1934;’’. N THE CONTROLLED SUBSTANCES ACT 18, United States Code, is amended— (2) I .— (11) ELIMINATION OF OUTMODED CITE IN SEC- (A) by inserting ‘‘and’’ at the end of sub- (A) IN SECTION 401.—Section 401(d) of the TION 2339A.—Section 2339A(a) of title 18, section (c)(2)(B)(iii); and Controlled Substances Act (21 U.S.C. 841(d)) United States Code, is amended by striking (B) by striking the period at the end of is amended— ‘‘2332c,’’. subsection (e)(4)(I) and inserting a semi- (i) in paragraph (1), by striking ‘‘and shall (12) CORRECTION OF REFERENCES IN AMEND- colon. be fined not more than $10,000’’ and inserting ATORY LANGUAGE.—Effective the date of its ORRECTION OF PUNCTUATION IN SECTION (13) C ‘‘or fined under title 18, United States Code, enactment, section 115(a)(8)(B) of Public Law 1032.—Section 1032(1) of title 18, United States or both’’; and 105–119 is amended— Code, is amended by striking ‘‘13,’’ and in- (ii) in paragraph (2), by striking ‘‘and shall (A) in clause (i)— serting ‘‘13’’. be fined not more than $20,000’’ and inserting (i) by striking ‘‘at the end of’’ and insert- (14) CORRECTION OF PUNCTUATION IN SECTION ‘‘or fined under title 18, United States Code, ing ‘‘following’’; and 1345.—Section 1345(a)(1) of title 18, United or both’’. (ii) by striking ‘‘paragraph’’ the second States Code, is amended— (B) IN SECTION 402.—Section 402(c)(2) of the place it appears and inserting ‘‘subsection’’; (A) in subparagraph (B), by striking ‘‘, or’’ Controlled Substances Act (21 U.S.C. 842(c)) and and inserting ‘‘; or’’; and is amended— (B) in clause (ii), by striking ‘‘subpara- (B) in subparagraph (C), by striking the pe- (i) in subparagraph (A), by striking ‘‘of not graph (A)’’ and inserting ‘‘clause (i)’’. riod and inserting a semicolon. more than $25,000’’ and inserting ‘‘under title (f) TABLES OF SECTIONS CORRECTIONS.— (15) CORRECTION OF PUNCTUATION IN SECTION 18, United States Code’’; and (1) CONFORMING TABLE OF SECTIONS TO 3612.—Section 3612(f)(2)(B) of title 18, United (ii) in subparagraph (B), by striking ‘‘of HEADING OF SECTION.—The item relating to States Code, is amended by striking ‘‘pre- $50,000’’ and inserting ‘‘under title 18, United section 1837 in the table of sections at the be- ceding.’’ and inserting ‘‘preceding’’. States Code’’. ginning of chapter 90 of title 18, United (16) CORRECTION OF INDENTATION IN CON- (C) IN SECTION 403.—Section 403(d) of the States Code, is amended by striking ‘‘Con- TROLLED SUBSTANCES ACT.—Section 402(c)(2) Controlled Substances Act (21 U.S.C. 843(d)) duct’’ and inserting ‘‘Applicability to con- of the Controlled Substances Act (21 U.S.C. is amended— duct’’. 842(c)(2)) is amended by moving the margin (i) by striking ‘‘of not more than $30,000’’ (2) CONFORMING HEADING TO TABLE OF SEC- of subparagraph (C) 2 ems to the left. each place that term appears and inserting TIONS ENTRY.—The heading of section 1920 of (c) ELIMINATION OF REDUNDANCIES.— ‘‘under title 18, United States Code’’; and title 18, United States Code, is amended by (1) ELIMINATION OF DUPLICATE AMEND- (ii) by striking ‘‘of not more than $60,000’’ striking ‘‘employee’s’’ and inserting ‘‘em- MENTS.—Effective on the date of its enact- each place it appears and inserting ‘‘under ment, paragraphs (1), (2), and (4) of section title 18, United States Code’’. ployees’’’. 601(b), paragraph (2) of section 601(d), para- (e) CROSS REFERENCE CORRECTIONS.— SEC. 5003. ADDITIONAL TECHNICALS. graph (2) of section 601(f), paragraphs (1) and (1) SECTION 3664.—Section 3664(o)(1)(C) of Title 18, United States Code, is amended— (2)(A) of section 601(j), paragraphs (1) and (2) title 18, United States Code, is amended by (1) in section 922(t)(1)(C), by striking of section 601(k), subsection (d) of section striking ‘‘section 3664(d)(3)’’ and inserting ‘‘1028(d)(1)’’ and inserting ‘‘1028(d)’’; 602, paragraph (4) of section 604(b), sub- ‘‘subsection (d)(5)’’. (2) in section 1005— section (r) of section 605, and paragraph (2) of (2) CHAPTER 228.—Section 3592(c)(1) of title (A) in the first undesignated paragraph, by section 607(j) of the Economic Espionage Act 18, United States Code, is amended by strik- striking ‘‘Act,,’’ and inserting ‘‘Act,’’; and of 1996 are repealed. ing ‘‘section 36’’ and inserting ‘‘section 37’’. (B) by inserting ‘‘or’’ at the end of the (2) ELIMINATION OF EXTRA COMMA.—Section (3) CORRECTING ERRONEOUS CROSS REF- third undesignated paragraph; 1956(c)(7)(D) of title 18, United States Code, is ERENCE IN CONTROLLED SUBSTANCES ACT.— (3) in section 1071, by striking ‘‘fine of amended— Section 511(a)(10) of the Controlled Sub- under this title’’ and inserting ‘‘fine under (A) by striking ‘‘Code,,’’ and inserting stances Act (21 U.S.C. 881(a)(10)) is amended this title’’; ‘‘Code,’’; and by striking ‘‘1822 of the Mail Order Drug Par- (4) in section 1368(a), by inserting ‘‘to’’ (B) by striking ‘‘services),,’’ and inserting aphernalia Control Act’’ and inserting ‘‘422’’. after ‘‘serious bodily injury’’; ‘‘services),’’. (4) CORRECTION TO REFLECT CROSS REF- (5) in subsections (b)(1) and (c) of section (3) REPEAL OF SECTION GRANTING DUPLICA- ERENCE CHANGE MADE BY OTHER LAW.—Effec- 2252A, by striking ‘‘paragraphs’’ and insert- TIVE AUTHORITY.— tive on the date of its enactment, section ing ‘‘paragraph’’; and (A) Section 3503 of title 18, United States 601(c)(3) of the Economic Espionage Act of (6) in section 2254(a)(3), by striking the Code, is repealed. 1996 is amended by striking ‘‘247(d)’’ and in- comma before the period at the end. (B) The table of sections at the beginning serting ‘‘247(e)’’. SEC. 5004. REPEAL OF OUTMODED PROVISIONS. of chapter 223 of title 18, United States Code, (5) TYPOGRAPHICAL AND TYPEFACE ERROR IN (a) Section 14 of title 18, United States is amended by striking the item relating to TABLE OF CHAPTERS.—The item relating to Code, and the item relating thereto in the section 3503. chapter 123 in the table of chapters at the be- table of sections at the beginning of chapter (4) ELIMINATION OF OUTMODED REFERENCE TO ginning of part I of title 18, United States 1 of title 18, United States Code, are re- PAROLE.—Section 929(b) of title 18, United Code, is amended— pealed. States Code, is amended by striking the last (A) by striking ‘‘2271’’ and inserting ‘‘2721’’; (b) Section 1261 of such title is amended— sentence. and (1) by striking ‘‘(a) The Secretary’’ and in- (d) CORRECTION OF OUTMODED FINE (B) so that the item appears in bold face serting ‘‘The Secretary’’; and AMOUNTS.— type. (2) by striking subsection (b).

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00255 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S14028 CONGRESSIONAL RECORD — SENATE December 20, 2001 (c) Section 1821 of such title is amended by may require the use of deceit or misrepresen- and Test Center of the New Mexico Institute striking ‘‘, the Canal Zone’’. tation, where such activities are consistent of Mining and Technology; (d) Section 3183 of such title is amended by with Federal law.’’. (4) $7,000,000, or such sums as may be nec- striking ‘‘or the Panama Canal Zone,’’. TITLE VII—PAUL COVERDELL FORENSIC essary, for the Academy of Counterterrorist (e) Section 3241 of such title is amended by SCIENCES IMPROVEMENT GRANTS Education at Louisiana State University; striking ‘‘United States District Court for SEC. 7001. PAUL COVERDELL FORENSIC and the Canal Zone and the’’. SCIENCES IMPROVEMENT GRANTS. (5) $7,000,000, or such sums as may be nec- SEC. 5005. AMENDMENTS RESULTING FROM PUB- (a) STATE APPLICATIONS.—Section essary, for the National Exercise, Test, and LIC LAW 107–56. 503(a)(13)(A)(iii) of title I of the Omnibus Training Center of the Department of En- (a) MARGIN CORRECTIONS.— Crime Control and Safe Streets Act of 1968 ergy, located at the Nevada test site. (1) Section 2516(1) of title 18, United States (42 U.S.C. 3753(a)(13)(A)(iii)) is amended by TITLE VIII—ECSTASY PREVENTION ACT Code, is amended by moving the left margin striking ‘‘or the National Association of OF 2001 for subsection (q) 2 ems to the right. Medical Examiners,’’ and inserting ‘‘, the SEC. 8001. SHORT TITLE. (2) Section 2703(c)(1) of title 18, United National Association of Medical Examiners, This title may be cited as the ‘‘Ecstasy States Code, is amended by moving the left or any other nonprofit, professional organi- Prevention Act of 2001’’. zation that may be recognized within the fo- margin of subparagraph (E) 2 ems to the left. SEC. 8002. GRANTS FOR ECSTASY ABUSE PREVEN- (3) Section 1030(a)(5) of title 18, United rensic science community as competent to TION. States Code, is amended by moving the left award such accreditation,’’. Section 506B(c) of title V of the Public margin of subparagraph (B) 2 ems to the left. (b) FORENSIC SCIENCES IMPROVEMENT Health Service Act is amended by adding at GRANTS.—Part BB of title I of the Omnibus (b) CORRECTION OF WRONGLY WORDED CLER- the end the following: Crime Control and Safe Streets Act of 1968 ICAL AMENDMENT.—Effective on the date of ‘‘(3) EFFECTIVE PROGRAMS.— (42 U.S.C. 3797j et seq.) is amended— its enactment, section 223(c)(2) of Public Law ‘‘(A) IN GENERAL.—In addition to the pri- (1) in section 2801, by inserting after 107-56 is amended to read as follows: ority under paragraph (2), the Administrator ‘‘States’’ the following: ‘‘ and units of local ‘‘(2) The table of sections at the beginning shall give priority to communities that have government’’; of chapter 121 of title 18, United States Code, taken measures to combat club drug use, in- (2) in section 2802— is amended by adding at the end the fol- cluding passing ordinances restricting rave (A) in the matter before paragraph (1), by lowing new item: clubs, increasing law enforcement on Ec- inserting ‘‘or unit of local government’’ after stasy, and seizing lands under nuisance ‘‘2712. Civil actions against the United ‘‘State’’; States.’’. (B) in paragraph (1), to read as follows: abatement laws to make new restrictions on an establishment’s use. (c) CORRECTION OF ERRONEOUS PLACEMENT ‘‘(1) a certification that the State or unit ‘‘(B) STATE PRIORITY.—A priority grant OF AMENDMENT LANGUAGE.—Effective on the of local government has developed a plan for may be made to a State under this paragraph date of its enactment, section 225 of Public forensic science laboratories under a pro- on a pass-through basis to an eligible com- Law 107-56 is amended— gram described in section 2804(a), and a spe- munity.’’. (1) by striking ‘‘after subsection (g)’’ and cific description of the manner in which the inserting ‘‘after subsection (h)’’; and grant will be used to carry out that plan;’’; SEC. 8003. COMBATING ECSTASY AND OTHER (C) in paragraph (2), by inserting ‘‘or ap- CLUB DRUGS IN HIGH INTENSITY (2) by redesignating the subsection added DRUG TRAFFICKING AREAS. propriate certifying bodies’’ before the semi- to section 105 of section 105 of the he Foreign (a) PROGRAM.— colon; and Intelligence Surveillance Act of 1978 (50 (1) IN GENERAL.—The Director of the Office (D) in paragraph (3), by inserting ‘‘for a U.S.C. 1805) as subsection (i). of National Drug Control Policy shall use State or local plan’’ after ‘‘program’’; (d) PUNCTUATION CORRECTIONS.— amounts available under this section to com- (3) in section 2803(a)(2), by striking ‘‘to (1) Section 1956(c)(6)(B) of title 18, United bat the trafficking of MDMA in areas des- States with’’ and all that follows through States Code, is amended by striking the pe- ignated by the Director as high intensity the period and inserting ‘‘for competitive riod and inserting a semicolon. drug trafficking areas. awards to States and units of local govern- (2) Effective on the date of its enactment, (2) ACTIVITIES.—In meeting the require- section 803(a) of Public Law 107-56 is amend- ment. In making awards under this part, the Attorney General shall consider the average ment in paragraph (1), the Director shall ed by striking the close quotation mark and transfer funds to assist anti-Ecstasy law en- period that follows at the end of subsection annual number of part 1 violent crimes re- ported by each State to the Federal Bureau forcement initiatives in high intensity drug (a) in the matter proposed to be inserted in trafficking areas, including assistance for in- title 18, United States Code, as a new section of Investigation for the 3 most recent cal- endar years for which data is available and vestigative costs, intelligence enhance- 2339. ments, technology improvements, and train- (3) Section 1030(c)(3)(B) of title 18, United consider the existing resources and current needs of the potential grant recipient.’’; ing. States Code, is amended by inserting a (b) AUTHORIZATION OF APPROPRIATIONS.— comma after ‘‘(a)(4)’’. (4) in section 2804— (A) in subsection (a), by inserting ‘‘or unit (1) IN GENERAL.—There is authorized to be (e) ELIMINATION OF DUPLICATE AMEND- appropriated to carry out this section such MENT.—Effective on the date of its enact- of local government’’ after ‘‘A State’’; and (B) in subsection (c)(1), by inserting ‘‘(in- sums as are necessary for fiscal years 2002 ment, section 805 of Public Law 107-56 is through 2005. amended by striking subsection (b). cluding grants received by units of local gov- ernment within a State)’’ after ‘‘under this (2) NO SUPPLANTING.—Any Federal funds re- (f) CORRECTION OF UNEXECUTABLE AMEND- part’’; and ceived under this section shall be used to MENTS.— (5) in section 2806(a)— supplement, not supplant, non-Federal funds (1) Effective on the date of its enactment, that would otherwise be used to carry out ac- section 813(2) of Public Law 107-56 is amended (A) in the matter before paragraph (1), by inserting ‘‘or unit of local government’’ after tivities funded under this section. by striking ‘‘semicolon’’ and inserting ‘‘pe- (c) APPORTIONMENT OF FUNDS.—The Direc- ‘‘each State’’; and riod’’. tor shall apportion amounts appropriated for (B) in paragraph (1), by inserting before the (2) Effective on the date of its enactment, a fiscal year pursuant to the authorization of semicolon the following: ‘‘, which shall in- section 815 of Public Law 107-56 is amended appropriations in subsection (b) for activi- clude a comparison of pre-grant and post- by inserting ‘‘a’’ before ‘‘statutory author- ties under subsection (a) among and within ization’’. grant forensic science capabilities’’ areas designated by the Director and based (C) in paragraph (2), by striking ‘‘and’’ at (g) CORRECTION OF HEADING STYLE.—The on the threat assessments submitted by indi- heading for section 175b of title 18, United the end; vidual high intensity drug trafficking areas. (D) by redesignating paragraph (3) as para- States Code, is amended to read as follows: SEC. 8004. NATIONAL YOUTH ANTIDRUG MEDIA graph (4); and ‘‘§ 175b. Possession by restricted persons’’. CAMPAIGN. (E) by inserting after paragraph (2) the fol- (a) IN GENERAL.—In conducting the na- TITLE VI—UNDERCOVER INVESTIGATIVE lowing: tional media campaign under section 102 of PRACTICES CONDUCTED BY FEDERAL ‘‘(3) an identification of the number and the Drug-Free Media Campaign Act of 1998, ATTORNEYS type of cases currently accepted by the lab- the Director of the Office of National Drug SEC. 6001. UNDERCOVER INVESTIGATIVE PRAC- oratory; and’’. Control Policy shall ensure that such cam- TICES CONDUCTED BY FEDERAL AT- SEC. 7002. AUTHORIZATION OF APPROPRIATIONS. paign addresses the reduction and prevention TORNEYS. There are authorized to be appropriated for of abuse of MDMA and club and emerging Section 530B(a) of title 28, United States each of fiscal years 2002 through 2007— drugs among young people in the United Code, is amended by inserting after the first (1) $30,000,000 for the Center for Domestic States. sentence the following: ‘‘Notwithstanding Preparedness of the Department of Justice in (b) AUTHORIZATION OF APPROPRIATIONS.— any provision of State law, including rules of Anniston, Alabama; There is authorized to be appropriated to professional conduct for attorneys, an attor- (2) $7,000,000, or such sums as may be nec- carry out this section such sums as are nec- ney for the Government may, for the purpose essary, for the Texas Engineering Extension essary for fiscal years 2002 through 2005. of investigating terrorism, provide legal ad- Service of Texas A&M University; SEC. 8005. MDMA DRUG TEST. vice and supervision on conducting under- (3) $7,000,000, or such sums as may be nec- There are authorized to be appropriated to cover activities, even though such activities essary, for the Energetic Materials Research the Office of National Drug Control Policy

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00256 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S14029 such sums as are necessary to commission a (d) TERMINATION.—The task force shall ter- CONVENING OF THE SECOND drug test for MDMA which would meet the minate 3 years after the date of enactment of SESSION OF THE 107TH CONGRESS standards for the Federal Workplace. this Act. Mr. REID. Mr. President, I ask unan- SEC. 8006. NATIONAL INSTITUTE ON DRUG ABUSE (e) AUTHORIZATION OF APPROPRIATIONS.— REPORT. There are authorized to be appropriated such imous consent that the Senate proceed (a) RESEARCH.—The Director of the Na- sums as are necessary to carry out this sec- to the consideration of H.J. Res. 80, tional Institute on Drug Abuse (referred to tion. which we have just received from the in this section as the ‘‘Director’’) shall con- f House and is now at the desk. duct research— The PRESIDING OFFICER. The (1) that evaluates the effects that MDMA AUTHORITY FOR COMMITTEES TO clerk will report the joint resolution. use can have on an individual’s health, such MEET The legislative clerk read as follows: as— (A) physiological effects such as changes in COMMITTEE ON ARMED SERVICES A joint resolution (H.J. Res. 80) appointing ability to regulate one’s body temperature, Mr. HARKIN. Mr. President, I ask the day for the convening of the second ses- stimulation of the cardiovascular system, unanimous consent that the Com- sion of the one hundred seventh Congress. muscle tension, teeth clenching, nausea, mittee on Armed Services be author- There being no objection, the Senate blurred vision, rapid eye movement, tremors, ized to meet during the session of the proceeded to consider the joint resolu- and other such conditions, some of which can Senate on Thursday, December 20, 2001, tion. result in heart failure or heat stroke; Mr. REID. Mr. President, I ask unan- (B) psychological effects such as mood and at 11:30 a.m., in executive session to mind altering and panic attacks which may consider a civilian nomination and imous consent that the joint resolution come from altering various pending military nominations. be read a third time, passed, and the neurotransmitter levels such as serotonin in The PRESIDING OFFICER. Without motion to reconsider be laid upon the the brain; objection, it is so ordered. table, without any intervening action (C) short-term effects like confusion, de- COMMITTEE ON COMMERCE, SCIENCE, AND or debate. pression, sleep problems, severe anxiety, par- TRANSPORTATION The PRESIDING OFFICER. Without anoia, hallucinations, and amnesia; and Mr. HARKIN. Mr. President, I ask objection, it is so ordered. (D) long-term effects on the brain with re- The joint resolution (H.J. Res. 80) gard to memory and other cognitive func- unanimous consent that the Com- tions, and other medical consequences; and mittee on Commerce, Science, and was read the third time and passed. (2) documenting those research findings Transportation be authorized to meet The PRESIDING OFFICER. Under and conclusions with respect to MDMA that on Thursday, December 20, 2001, at 9:30 the previous order, the Senator from are scientifically valid and identify the med- a.m., on the nomination of John Montana is recognized. ical consequences on an individual’s health. Magaw to be Undersecretary of Trans- f (b) FINAL REPORT.—Not later than January portation Security, (DOT). 1, 2003, the Director shall submit a report to TAX EXTENDERS the Congress. The PRESIDING OFFICER. Without (c) REPORT PUBLIC.—The report required by objection it is so ordered. Mr. BAUCUS. Mr. President, in a few this section shall be made public. moments I am going to ask that the f (d) AUTHORIZATION OF APPROPRIATIONS.— Senate take up and pass the tax ex- There is authorized to be appropriated such PRIVILEGE OF THE FLOOR tenders legislation. It is unfortunate sums as are necessary to carry out this sec- that the Congress, along with the Mr. WELLSTONE. Madam President, tion. President, were unable to agree on a I ask unanimous consent that Ellen SEC. 8007. INTERAGENCY ECSTASY/CLUB DRUG stimulus to the American economy Gerrity, of my staff, be allowed floor TASK FORCE. that would provide not only a boost to (a) ESTABLISHMENT.— privileges for the duration of today. the American economy, but also assist- (1) IN GENERAL.—The Director of the Office The PRESIDING OFFICER. Without ance to those who have lost unemploy- of National Drug Control Policy shall estab- objection, it is so ordered. ment compensation benefits as a con- lish a Task Force on Ecstasy/MDMA and Mr. GRAHAM. I ask unanimous con- sequence of the decline in the economy Emerging Club Drugs (referred to in this sec- sent Tiffany Smith, a fellow in our of- tion as the ‘‘task force’’) which shall— accelerated by the events of September fice, be permitted the privilege of the (A) design, implement, and evaluate the 11, as well as those who have lost floor. education, prevention, and treatment prac- health insurance as a consequence of The PRESIDING OFFICER. Without tices and strategies of the Federal Govern- losing their jobs. ment with respect to Ecstasy, MDMA, and objection, it is so ordered. It is almost axiomatic that the econ- emerging club drugs; and (B) specifically study the club drug prob- f omy is in tough shape. I do not expect with a high degree of certainty that lem and report its findings to Congress. MAKING FURTHER CONTINUING the Congress is going to come back to (2) MEMBERSHIP.—The task force shall— APPROPRIATIONS (A) be under the jurisdiction of the Direc- where we would like to be very quick- tor of the Office of National Drug Control Mr. REID. Mr. President, I ask unan- ly. Policy, who shall designate a chairperson; imous consent that the Senate proceed There are some small points which I and to H.J. Res. 79, the continuing resolu- think we should keep in mind. One is (B) include as members law enforcement, tion, which is at the desk. that auto sales broke records with zero substance abuse prevention, judicial, and The PRESIDING OFFICER. The public health professionals as well as rep- percent financing, and the auto compa- resentatives from Federal, State, and local clerk will report the resolution by nies get most of their income from fi- agencies. title. nancing. So they were not making any (b) RESPONSIBILITIES.—The responsibilities The legislative clerk read as follows: money these past couple of months, of the task force shall be— A joint resolution (H.J. Res. 79) making which means reports coming out next (1) to evaluate the current practices and further continuing appropriations for the fis- quarter and even this quarter will not strategies of the Federal Government in edu- cal year 2002, and for other purposes. be high. cation, prevention, and treatment for Ec- There being no objection, the Senate The same applies to retail sales. It is stasy, MDMA, and other emerging club drugs and recommend appropriate and beneficial proceeded to consider the joint resolu- the Christmas season. We know stores models for education, prevention, and treat- tion. across the country, in order to encour- ment; Mr. REID. Mr. President, I ask unan- age more sales, are giving tremendous (2) to identify appropriate government imous consent that the joint resolution discounts, which clearly discounts that components and resources to implement task be read a third time, passed, and the company’s income. force recommendations; and motion to reconsider be laid upon the We are going to have to face a stim- (3) to make recommendations to the Presi- table, without intervening action or ulus package and should this next year. dent and Congress to implement proposed debate. I hope we do it in a much more accom- improvements in accordance with the Na- tional Drug Control Strategy and its budget The PRESIDING OFFICER. Without modating manner than we have in the allocations. objection, it is so ordered. last several weeks. (c) MEETINGS.—The task force shall meet The joint resolution (H.J. Res. 79) I am not going to get into the blame at least once every 6 months. was read the third time and passed. game. I am not going to say who

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00257 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S14030 CONGRESSIONAL RECORD — SENATE December 20, 2001 caused this collapse. I have lots of ized preference for trade. That is a Mr. BAUCUS. I see. It is now more ideas. That is history. What happened trade provision that is in the law clear to me what is happening. happened. It is now time to go forward. today. The Andean Trade Preference Mr. NICKLES. My intention was, if I urge my colleagues, after appropriate Act extends that. It is in the law today, we want to repeal the death tax and rest and a break over the holidays, in addition to trade adjustment assist- pass the extenders, this Senator would when they are rested up, to come back ance. have no objection. I am sure we could with renewed vigor and renewed dedi- I strongly urge my colleagues to whip it and see if there would be no ob- cation and perseverance to working to- think of Americans and pass this re- jection. gether and, most important, listening quest. Mr. BAUCUS. I understand. I am sure to the other side. I ask unanimous consent that the the Senator would love to do that, and Too often we tend to talk, and we do Senate proceed to immediate consider- I am also sure there would be other not listen enough. If we were to listen ation of Calendar No. 33, H.R. 8; that Senators who would object. a little more, even for a nanosecond, I the Baucus substitute amendment at Mr. NICKLES. The Presiding Officer think that would be progress. I urge the desk be agreed to; the bill as might like for us to do that. my colleagues to listen to different amended be read a third time and Mr. BAUCUS. Given all the objec- points of view next year. passed, and the motion to reconsider be tions that approach will take, I was Nevertheless, I think we should sal- laid upon the table. asking the Senator to consider the ap- The PRESIDING OFFICER. Is there vage whatever we can, and part of that proach I am suggesting. objection? is what is called the tax extenders. Mr. NICKLES. Further reserving the Mr. NICKLES. Reserving the right to right to object, if the Senator is not These include matters that are very object, I concur with many of the important for the economy and for peo- going to agree to pass the House-passed statements my friend from Montana language that passed in April with the ple who are relying on them. One is the made; it is very important for us to work opportunity tax credit which extenders language, then I ask the Sen- work together more than we have done ator to modify his request and let us helps people find jobs. in the last few months. The unanimous The Joint Committee on Tax esti- take up the stimulus package that did consent request, if I am reading it cor- have the extenders, that did have many mates 450,000 to 525,000 will be hired rectly, says the Senate wants to sub- with this credit next year. It expires other provisions that would have stitute the extenders for H.R. 8, which helped the unemployed, that did have this year. All provisions I mentioned is the revenue package that passed some things that would help stimulate expire this year, and I think it is im- April 6. Is that correct? portant to keep those in existence so Mr. BAUCUS. That is correct. the economy, that did some things that next year people can rely upon them. Mr. NICKLES. That package would would help New York in addition to Another is extending the qualified be a substitute for it? In other words, what we have already done today. So I zone academy bond that authorizes $400 this was a bill that would basically, ask my colleague to modify his re- billion in bonds to States in the cal- over a 10-year period of time, eliminate quest, let us take up the stimulus endar year 2002. That is to renovate the death tax, I believe, and the Sen- package, the H.R. 3529, which was re- schools and purchase equipment. That ator wants to strike all that language ceived from the House. expires this year and will terminate and put in a 2-year extender bill; is I ask unanimous consent that the re- unless this legislation I mentioned that correct? quest be modified so that at first the passes. Mr. BAUCUS. This is 1 year. There is Senate would proceed to consideration A key point, and I urge my col- no intention to repeal any of the tax of H.R. 3529, which is the stimulus leagues to listen to this, it is a matter provisions that passed earlier this package received by the House; the bill of confidence and certainty. These are year. be read a third time and passed, with provisions upon which so many people Mr. NICKLES. I am reading this as a no intervening action or debate. in our country depend. Over the years, substitute for the House bill. I believe I would add, before the Chair rules, they have been on again, off again. It is it is a substitute for the House bill. If the bill has extender language that my like a yo-yo. the Senator modifies this and makes it colleague from Montana is requesting It is no way to do business. People in addition to the House bill, at least and therefore it would accommodate need certainty, a little more than they this Senator would not object. But if it his request. have today in these uncertain times, a is striking the House bill, I feel con- The PRESIDING OFFICER. Does the little more ability to predict the fu- strained to object. Senator so modify his request? Mr. BAUCUS. Mr. President, I believe ture. If we could pass this legislation If the Senator is willing to move it, the Senator made a unanimous consent tonight, extending the extenders, that in addition to the House bill, I will not request that would change my unani- would enable people with more cer- object at this time. mous consent request, at least as I un- tainty to know they can count on an Mr. BAUCUS. I will respond to my colleague that my intention is to take derstand it. I ask the Senator if he will existing law. modify his request to substitute the This is not new law. This is an exten- up the bill that is already on the cal- stimulus bill that passed the Senate sion of existing law. It is not right for endar. Mr. NICKLES. I know. Finance Committee instead of the bill us to be not continuing that legislation Mr. BAUCUS. And strike out the sub- that passed the House. because, otherwise, we will wake up stance of it; take it up and pass it back Mr. NICKLES. I cannot agree to that. next year, January 1 or 2, and these are with these provisions. I do not know if we are playing one- not in effect. There are many other of I might answer my friend, this is the upmanship. I would like to pass the bill them that are very good and, again, it procedure we have to follow in order to that passed the House. So I will not creates that uncertainty. pass these extenders. agree to that. One, for example, is AMT for individ- Mr. NICKLES. Further reserving the Mr. BAUCUS. Mr. President, it is uals. That is the alternative minimum right to object, again I will object if it clear what is happening. tax credit. That is an extender. Accord- is striking the House bill. The House The PRESIDING OFFICER. Is there ing to the Joint Committee on Tax, passed a bill with a good vote. I do not objection to the request of the Senator 900,000 Americans will be subject to the remember exactly what it was. If it is from Montana? AMT without this relief, as one of the in addition to the House bill, I would Mr. NICKLES. I object. extenders we have. not object. The PRESIDING OFFICER. The ob- Four hundred thousand of those will I ask my colleague—and I think I jection is heard. be taxpayers with incomes between hear the Senator saying he is not going Under the previous order, the Sen- $50,000 and $75,000. Those are really to—is it not the intent of the Senator ator from Louisiana is recognized. middle-income Americans. If we do not not to pass the House-passed bill? I was f extend this extender, then those people hoping we could make a deal. will be subject to the AMT tax. I might mention we might have to BIOTERRORISM In addition, this package includes an notify a few other Senators before we Ms. LANDRIEU. Mr. President, there extension of a GSP, that is a general- do this by unanimous consent. are many important issues on the

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00258 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S14031 agenda and the one that was being dis- this moment—but it is my intention to In conclusion, we need to promote cussed is one of the most important, work with all the Senators and to work adoption, helping the system to be but not the only. There is other busi- with the INS, to work with the State transparent and encouraging people by ness that needs to get done before we Department over the course of the next saying, it is not too long, it is not too leave, which is an issue that is of great several days and weeks and months, if tough, it is not too difficult, and it is concern and an issue I wanted to bring necessary, to make sure these Amer- worth it to bring some of these chil- to the attention of the Senators. ican families can get the visas, take dren to our country and to provide per- Before I get into that subject area, their children safely and come to the manency and love to so many who have which relates to families and children United States. so little to hope for. and adoption, I want to thank the lead- According to the INS and according Mr. President, I ask unanimous con- ership. I thank Senator KENNEDY and to the story and the details I know, sent to have these details printed in Senator FRIST, the main sponsors of there is concern that there is fraud and the RECORD. the bioterrorism legislation, for agree- abuse in Cambodia and therefore that There being no objection, the mate- ing in a colloquy submitted on behalf is why the visas were not issued. I ac- rial was ordered to be printed in the of myself and Senator MCCONNELL from knowledge that, unfortunately, in the RECORD, as follows: Kentucky to add a provision that will whole area of adoption, both domestic WHY THESE 12 NOTICES OF INTENT TO DENY help all hospitals to call on FEMA and international, there is some fraud SHOULD BE REVOKED funds that may be available in the and abuse. We need to do everything we The Consular Officials in Cambodia re- event of another terrorist attack when can to make sure that fraud and abuse viewed each child’s documents PRIOR to the hospital resources are called on to as- is stamped out. This Senate, this child being legally adopted under Cambodian sist victims of those attacks or if the House, and this Congress, with the help law. The documents were again reviewed by of President Clinton as well as Presi- Consular Officials prior to the parents being hospitals are harmed themselves. I notified that all was in order and scheduling very much appreciate it because it dent Bush and both State Departments of their interviews. So the U.S. State De- seemed to be an oversight in the legis- in the last administration and this ad- partment had two opportunities to identify lation. ministration, are working diligently on problems prior to the parents traveling to As that bill moves to conference, I that. Cambodia to bring home their child. These particularly thank them for their sen- We have passed a Hague treaty, an children are now officially adopted by Amer- sitivities to provide funding for all hos- international treaty aimed specifically ican citizens. To deny these children visas pitals in the event that that situation at making the system of adoption more for no specific, concrete reason, is to make transparent, eliminating the middle- orphans out of these children all over again. were to occur. Of course, we are all INS should revoke the Notice of Intent to hopeful it does not and are working man, reducing time, and encouraging Deny Letters it issued in the recent Cam- very hard to see it does not, but I people to adopt children from all over bodian cases for the following reasons. thank them for agreeing. the world because there are so many 1. INS did not conduct a case-by-case in- f children who need a home and so many vestigation. families who want to add children to INS has a policy to adjudicate cases on a TWELVE FAMILIES NEED CAM- their families, to build and strengthen case-by-case basis. This policy is predicated BODIAN VISAS TO BRING THEIR their families through adoption. on the premise that each case has unique CHILDREN HOME Denying visas to 12 American fami- facts, documents and circumstances. In re- viewing the seven (7) Notice of Intent to Ms. LANDRIEU. Mr. President, I lies who pay their taxes, good commu- Deny Letters, the matters addressed are ex- know the Senator from Ohio and others nity citizens, people who are doing ev- actly alike. The cases do not even reflect are waiting to speak on other matters erything they think is right, and then correct information about the children and before we leave, but last night there denying the visas is, I suggest, not the their respective ages. Specifically, the let- was a troubling expose´ done on a very right approach. I am hoping our INS, ters focus on children that are infants. How- unfortunate circumstance, and that with our new Commissioner, Mr. ever, in review of the children is issue, a sig- circumstance involves 12 American Ziglar, who we all know very well and nificant number of children are not infants. One child is 31 months old; families who are stuck in Cambodia be- who I have spoken to directly about One child is 25 months old; cause they are unable to obtain visas this issue, as well as the State Depart- One child is 23 months old; for their newly adopted children. They ment and Secretary Powell and others, One child is 20 months old; are unable to get those visas to come will look into this matter and come to One child is 10 months old; back to the United States safely with an understanding and agreement to Seven children are approximately 6 months these children to celebrate what would old; and allow these children to come with their DOB May 8th 2001 and abandoned May 14 have been a joyous homecoming on families. (Munson). these holidays. These children are 6 months to 31 It is important to note that all of the chil- We are all getting ready to join our months old. I have learned if children dren have been in the Asian Orphanage Asso- families and loved ones in our home are not adopted in Cambodia by the age ciation for at least six (6) months. These States for Christmas and for the holi- of 8, under the Cambodian rules and children have been processed through the days. It is not just parents being re- regulations, children are not able to be Cambodian judicial system and have been united with children and children with adopted. So there is an urgency. There adopted by American families in accordance with the laws of Cambodia. parents, but grandchildren, aunts, un- are time issues here. It is very impor- 2. The investigation is flawed: INS only in- cles, and cousins. This holiday season, tant to try to work through this situa- vestigated cases that were facilitated by a as we have all said, is going to be even tion to help these families who are Cambodian man, Serey Puth—it did not in- that much more special because of the from Illinois, Pennsylvania, New York, vestigate orphans from other orphanages or challenges before our Nation and the Maine, Virginia, Oklahoma, Wash- children who came through other events of September 11 and subsequent ington, and Arizona; none from Lou- facilitators; INS interviewed secondary events that make us realize how impor- isiana. sources when persons holding primary roles tant our families are to us and our As the chair of the adoption caucus, were available; faulty translations; and erro- I bring this to the attention of the Sen- neous information in the Notice of Intent to loved ones. Deny. We are mindful as we leave today, ate. I will be working as much as I can (a) The only children that were targeted in happy with some of the successes we over the next weeks and months to this investigation were children that has have had, of the pain and suffering that make sure this issue is resolved. There been processed through a Cambodian will be felt during this holiday season are procedures that can be used to facilitator, Serey Puth. Children who were by 3,000 families and many more who focus on eliminating abuse and corrup- placed through other orphanages and other were directly affected, who will not tion but holding up families who have facilitators were not investigated. gone through the process, sometimes (b) Generally, INS protocol is to conduct have a loved one present for the holi- extensive investigations. Statements are days. excruciating detail, without specific al- taken under oath by competent investigators For the record, there is not anything legations of fraud in these individual and translators. Usually, primary parties are I can offer at this moment—no piece of cases, is beyond where I think we need interviewed. This did not occur in these legislation, no fix that I can offer at to go. cases.

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00259 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S14032 CONGRESSIONAL RECORD — SENATE December 20, 2001 INS only interviewed three persons. Mrs. that Mr. Yo did not understand the inves- children, it would seem that the Cambodian Phorn Phon, the wife of a village chief for tigator’s question or Mr. Yo has some seri- government would have been aware of the Chaneng Mang village, Mr. Yo a member of ous competency problems. problems. Furthermore, if the Cambodian the staff of the Asian Orphanage Association (ii) When the INS investigator asked Mr. government believes that the Asian Orphan- and a villager on motorcycle. Yo where Serey Puth was, Mr. Yo responded age Association did not comply with Cam- It would have been more appropriate to that Serey Puth, the orphanage director and bodian law, then MOSALVY has the ability interview the chief instead of the chief’s owner, was out in the country as in the coun- to revoke the Certificates of Adoption. wife. It is not sound reasoning to expect the tryside. However, the translator interpreted wife of the village chief to know everything his answer to be that Serey Puth was out of In addition, under the old Cambodian Law, that the chief knows. the country. Serey Puth never left the coun- if it was not known where a child was born, It would have been more direct and inform- try during the nine day INS investigation. the place of birth was picked randomly. In ative to interview Serey Puth, the owner and (iii) The Chief’s wife was asked if any chil- the last year, the law has been changed. Cur- director or the Asian Orphanage Association dren were abandoned in the village and she rently, when an abandoned child is found, his than Mr. Yo a staff member of AOA. Mr. Yo stated that there were not. That is true, chil- place of birth is where he was found. How- has the responsibility of listing children in dren from her village had not been aban- ever, at the time that the children were born the orphanage’s registry, making sure the doned. However, children from other where- and registered with vital records, the or- premises are clean and in good repair. He is abouts had been abandoned to the village. phanage director complied with the law of not privy as to the circumstances of the par- Review of these examples illustrates how that time—he picked a place of birth. ticular cases. He would not know when and words not properly translated can lead to where children were born. very unfavorable conclusions. INS sent Jean M. Christiansen from the Additionally, Serey Puth, the director and (d) The Intent to Deny states that a raid INS District Office in Bangkok to inves- owner of the AOA orphanage was available was conducted of the Asian Orphanage Asso- tigate the cases. While in Cambodia for nine and willing to meet with the INS officials. ciation premises. This is false. The Cam- days, her staff conducted an investigation. Although he had just moved the location of bodian officials conducted a raid of a medical Under her pen, INS issued Notices of Intent his office, it would not have been difficult to center, not AOA. Some of the children from to Deny to the American families. INS locate him. the orphanage were being treated at the should revoke its Notices of Intent to Deny. It would have been more credible to inter- medical center. view persons in authority than to interview Additionally, the Intent to Deny states CAMBODIAN CASES THAT RECEIVED NOTICES OF INTENT someone who drove by the chief’s dwelling that ‘‘accusations of baby trafficking have TO DENY on a motorcycle and claimed he was the dep- been levied against the director.’’ This too is uty chief of a village near by. false! Evidence from the Cambodian news- Adoptive parents’ State DOB DOA (c) There is a serious problem with the papers confirm the allegations made herein. Pennsylvania ...... 5–05–99 1–01–01 comprehension and/or translations. Here are 3. Cambodian government authorities are Illinois ...... 10–10–99 11–26–99 three examples of erroneous interpretations satisfied that their law has been fully com- Illinois ...... 1–07–00 2–10–01 by the translator. plied with. NY ...... 2–04–00 3–10–00 NY ...... 2–10–01 4–25–01 (i) The Notice of Intent to Deny letter con- MOSALVY, a Cambodian governmental en- Maine ...... 2–27–01 3–14–01 tains the following pertinent statement by tity (Ministry of Social Affairs, Labor, Voca- Illinois ...... 5–01–01 5–06–01 Mr. Yo. ‘‘Mr. Yo was then asked if he tional Training and Youth Rehabilitation) Virginia ...... 5–05–01 5–12–01 thought that it was reasonable to accept the informed the American prospective adoptive Oklahoma ...... 5–08–01 5–14–01 Arizona ...... 5–18–01 5–25–01 answers that he had given and he said he did parents that they had been approved to Washington ...... 5–22–01 5–29–01 not.’’ adopt specific Cambodian children. Addition- Arizona ...... 5–29–01 6–01–01 Please note that this statement is taken ally, MOSALVY issued a Certificate of Adop- Illinois ...... 6–14–01 6–21–01 directly from the Notice of Intent to Deny. tion for each of the children in issue. Had DOB: Date of birth. The only explanation for such a dialogue is there been any irregularities regarding these POA: Place of abandonment. CAMBODIAN CASES TO RECEIVE NOTICES OF INTENT TO DENY

Place of State and contact DOB DOA Place of abandon- US agency or facilitator Orphanage contact birth ment

Pennsylvania ...... 5–05–99 1–01–01 ...... AOA/. Illinois ...... 10–10–99 11–26–99 ...... AOA/RO. Illinois ...... 1–07–00 2–10–01 ...... AOA/RO. NY ...... 3–04–00 3–10–00 ...... AOA/RO. NY ...... 2–8–01 5 01 ...... Independent Facilitator Cassandra Keirstead ...... Cambodian, French Hungarian Friendship Orphanage. Maine ...... 2–27–01 3–14–01 ...... AOA. Illinois ...... 5–01–01 5–06–01 ...... AOA/RO. Virginia ...... 5–05–01 5–12–01 ...... Independent Facilitator Cassandra Keirstead ...... Cambodian, French Hungarian Friendship Orphanage. Oklahoma ...... 5–08–01 5–14–01 ...... AOA/RO. Arizona ...... 5–22–01 ...... Independent Facilitator Cassandra Keirstead ...... Cambodian, French Hungarian Friendship Orphanage. Washington ...... 5–22–01 ...... Independent Facilitator Cassandra Keirstead ...... Cambodian, French Hungarian Friendship Orphanage. Arizona ...... 5–29–01 6–1–01 ...... AOA/RO. Illinois ...... 6–14–01 6–21–01 ...... AOA/RO. DOB: Date of birth. POB: Place of birth. POA: Place of abandonment. AOA: Asian Orphanage Association. RO: Web site Reaching Out.

Ms. LANDRIEU. I thank the Senator Mr. NICKLES. I congratulate and TERRORIST VICTIMS’ COURTROOM from Oklahoma. One or two or more of compliment my friend and colleague ACCESS ACT these families are from his home State. from Louisiana for her leadership in Mr. NICKLES. I also compliment He has been such an advocate of adop- adoption, for the statement she just Senator ALLEN for his leadership and tion and such a tremendous leader in made. Adoption is an issue we have this area. I know he would understand. passage of a bill a few moments ago worked on in a bipartisan way, and we that will allow closed-circuit TV view- We will keep the Senate posted and will continue to work in a bipartisan work with the officials from the execu- ing for the trial of the alleged terror- way. There are lots of families who are tive department to see if it is resolved. ists. I compliment Senator ALLEN be- impacted both in the United States and cause I know he has a lot of constitu- My wish to the families is that we worldwide. My colleague from Lou- ents in Virginia and there are a lot of could give them Christmas in the isiana has done a very good job, and I constituents in New York, New Jersey, United States and get it resolved in the am happy to work with her. and California who have a real interest next few days. Perhaps that is possible. The story last night is heart- in seeing that justice is done. By pass- If not, we will revisit the issue when we ing the authorization bill allowing for breaking. Many of our staff members come back in January. closed-circuit TV, he will do that. I have been working on these issues for a The PRESIDING OFFICER (Mr. compliment Senator ALLEN for making long time. I compliment her for it. REED). The Senator from Oklahoma. that happen.

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00260 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S14033 UNFINISHED SENATE BUSINESS and one from New Jersey. They need to nominated John Hanford III, of Vir- Mr. NICKLES. Mr. President, we are be confirmed. They should be con- ginia, to be Ambassador at Large for getting close to wrapping up this ses- firmed. International Religious Freedom. sion. We did a lot of good things this We have a couple of marshals who are When you think of the battles we have year and some things we didn’t get pending. There is no reason why they going on all across the world with reli- done. One thing we did not get done should not be confirmed—actually just gious freedom, and some of it is in Af- was passage of the stimulus package. one marshal and one to be Chairman of ghanistan and some in Pakistan and That is unfortunate. It became way too the Foreign Claims Settlement Com- some in Sudan where you have individ- partisan. It did not need to be. Reces- mission. Let’s confirm these individ- uals who are held captive, imprisoned, sions are not partisan. We have a lot of uals. Let’s do it tonight. Somebody enslaved because of their religion, people out of work who need help. A lot says: Why are you doing it tonight? We wouldn’t it make sense for us to get of companies want to grow. We could confirmed more judges, more U.S. at- our Ambassador at Large for Inter- have done that. torneys—all those are always done by national Religious Freedom confirmed Senator GRASSLEY worked hard with voice votes. so he can go to work and help protect the Bush administration. There was a We have Janet Hale to be Assistant and promote religious harmony and lot of movement on this side of the Secretary of Health and Human Serv- freedom throughout the world? Hope- aisle to help pass the stimulus pack- ices. Secretary Thompson is entitled to fully, his nomination will be confirmed age. It didn’t happen. I regret that very have his Assistant Secretary for Health tonight. much. We could have helped the econ- and Human Services be confirmed. So I We have several other people in the omy, and we could have helped a lot of urge my colleagues to vote on that Department of State who were con- unemployed people. nomination or to approve that nomina- firmed by the Foreign Relations Com- Senator BAUCUS mentioned earlier tion. mittee unanimously who should be that he hopes when people come back We also have a couple of other posi- confirmed tonight. Many of these were they are less partisan and more intent tions. We have James Lockhart III to just reported by the committee, by on getting some positive results for the be Deputy Commissioner of Social Se- Senator BIDEN. I thank him for doing American people. That needs to hap- curity. That is an important position. that. I am looking at John Ong, who is pen. I hope we do not hear: Well, we In the Department of Energy, we to be Ambassador to Norway and John cannot bring something out unless it have Michael Smith, actually one of Price to be Ambassador Extraordinary passes two-thirds on our side. That my constituents. He happens to be sec- to the Republic of Mauritius; Arthur does not belong in the Senate. The Sen- retary of energy of the State of Okla- Dewey, of Maryland, to be Assistant ate is a deliberative body, and we homa. He has been nominated to be As- Secretary of State for Population, Ref- should have a chance to try to pass sistant Secretary of Energy dealing ugees, and Migration. Some of these, again, were just re- things, and pass them by majority with fossil fuels. Secretary Abraham is ported out. I thank my colleagues. We vote. Try to get something done, try to completing his first year and he should be able to get those through as make a positive contribution toward doesn’t have his Assistant Secretary well, not to mention Gaddi Vasquez, of helping the economy, not a strictly dealing with fossil fuels. We are now importing about 58 percent of our en- California, to be Director of the Peace Democrat or Republican package, but a Corps. ergy needs and he doesn’t even have an package that helps the economy. I mention these. These are not all. I Assistant Secretary dealing with fossil The House passed good legislation did not mention Gene Scalia. I would last night. Not perfect. Maybe we can fuels. really urge my colleagues—Gene Scalia One of the first bills we are going to improve upon it and help our economy has been on the calendar. He was nomi- be wrestling with next year is an en- and help the unemployed. nated in, I believe, April, one of the As we wind down, there are several ergy bill. We have a commitment from earliest nominees of this administra- nominations that are pending that the majority leader that we are going tion, to be Solicitor of the Department should be confirmed. It is not fair to to take up energy early next year. of Labor. Secretary Chao is entitled to this administration. It is not fair to That is great. You would think the ad- have a Solicitor. One of the most im- some of these individuals who have ministration would be entitled to have portant positions in the Department of been languishing, waiting to be con- their Assistant Secretary to help the Labor is Solicitor. He has to make all firmed with no action. There are five negotiations, to help prod Congress kinds of rulings. It is very important district court nominees, Federal along. So I urge my colleagues to ap- that she have her Solicitor. I urge my judges. We have confirmed 27; if we do prove his nomination. He was reported colleagues, let’s have a vote. If we can- 5 more, that will be 32. During Presi- out of the Energy Committee unani- not have it today, let’s have it in Janu- dent Clinton’s first year, we confirmed mously, as I believe Beverly Cook was, ary; let’s vote up or down. 27 of 47. President Bush nominated 60. from Idaho, to be Assistant Secretary Somebody said we may have to file We have confirmed 27, not quite half. of Energy dealing with environment, cloture. I can think of several people, We confirmed over half for President safety, and health. including the previous Solicitor of Clinton, and if you look at what we did Also Margaret S.Y. Chu, of New Mex- Labor, to whom many on this side for the first President Bush or what we ico, to be Director of the Office of Ci- might have had a philosophical objec- did for Ronald Reagan, we confirmed 91 vilian Radioactive Waste Management, tion, but we did not require cloture. percent of Ronald Reagan’s judges and Department of Energy. You should not require cloture on most a much higher percentage for President There is no reason why we cannot do nominees. You should not require clo- Bush. We should confirm more than we most of these nominees. Most of these ture hardly ever on nominees unless have today. There are five on the cal- nominees passed by unanimous votes in they are really out of the Main Street. endar. There is no reason not to con- the committees. Why can’t we confirm We had a vote on Joycelyn Elders and firm these individuals. We all know these individuals? I opposed that nomination very signifi- they will be confirmed. Why not let I urge Senator DASCHLE and Senator cantly, but it was an up-or-down vote. them go ahead and assume their du- REID and others to help. I think people are entitled to have a ties? There are a couple of others who are difference of opinion and have a debate. We have a judge from Alabama, a very important. The Department of If we have a difference of opinion, let’s judge from Colorado, a judge from Ne- State, John Hanford. John Hanford is discuss it. This is the Senate. But to vada, a judge from Texas, a judge from an individual with whom many of us not allow somebody to have a vote and Georgia. We have judges from Demo- worked in the Senate for years. He hold their careers in limbo for an un- crat States and Republican States. worked for Senator LUGAR. He helped limited period of time, it is not fair to Let’s not hold these five individuals myself and others when we ended up them, and I don’t think it makes the hostage. We can pass them tonight and passing the International Religious Senate look very good. I urge my colleagues to help do that. Freedom Act. Senator LIEBERMAN was Again, I urge our colleagues to move We also have four U.S. attorneys, a principal sponsor of that, and Sen- forward on Gene Scalia, to move for- from Alabama, New York, Arkansas, ator SPECTER. The administration ward on some of these other nominees,

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00261 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S14034 CONGRESSIONAL RECORD — SENATE December 20, 2001 many of whom, I hope and expect to be This afternoon I met with about 50 Now I would like to talk about what confirmed tonight. I hope they will. I steelworkers from Cleveland, OH, from we do for displaced workers. urge the leadership on the Democrat LTV steel. That company is in bank- First of all, we include an extension side to work with us and see if we can- ruptcy. Their jobs are gone and they of 13 weeks of unemployment benefits— not clear up as many nominees as pos- are displaced. They are petrified be- benefits that would be available to sible, confirm as many nominees as cause they do not know how they are those who became unemployed between possible on the Executive Calendar. going to be able to take care of their March 15, 2001, and December 31 at the I yield the floor. medical costs. Their company had a end of next year. An estimated 3 mil- The PRESIDING OFFICER. The Sen- health plan, but COBRA is no longer an lion unemployed workers would qualify ator from Ohio. option because the company is out of for benefits averaging about $230 a f business. They are worried about how week. Those extended benefits would be ECONOMIC STIMULUS they are going to provide health care 100-percent federally funded at a cost of for their families. They will get their about $10 billion to the Federal Gov- Mr. VOINOVICH. Mr. President, I unemployment benefits, but they are ernment, so States wouldn’t have to rise to express my disappointment that really concerned about how to pay for pick up the tab. the Senate did not have an opportunity their health care coverage. The bill would allow states to accel- today to vote on the White House and I pointed out to them that the stim- erate the transfer of $9 billion from Senate Centrist Coalition compromise ulus package the Centrist Coalition put State unemployment trust funds so on the economic stimulus package to together would subsidize their health they could distribute that money ear- aid dislocated workers. I think the care to the tune of 60 percent. They lier than now possible. This transfer of stimulus package, if passed, would were pleased to learn that their was money, which already belongs to the have made a real difference for the hope that someone would help them, states, would help State treasuries, American people. It would have helped that they could get insurance for their which are in dire straits today. This individuals and families. It would have families to get them over this very dif- proposed advance would provide the helped create jobs, or at least maintain ficult period. I can tell you: they are States with the flexibility to pay ad- jobs. And it would have responded to frightened. ministrative costs, provide additional the needs of laid-off workers and their I think so often when we talk about benefits for part-time workers, adopt families. stimulus packages, we get caught up in Early this fall, when it became clear alternative base periods, and avoid the dollar amounts and we don’t talk to me that our nation was in recession, raising their unemployment taxes dur- about real people. That is what this is I decided to get actively involved in de- ing the current recessionary times. about. For example, the rebate pro- veloping and advocating a stimulus Next, let us look at health care bene- gram that is in our stimulus package package. I recognized the package that fits. would provide help to some 38 million was coming out of the House could not The Centrist Coalition and White low-income workers who didn’t qualify get through the Senate because it House compromise proposal includes for rebate checks the last time around. wasn’t balanced. So I gathered to- $19 billion in health care assistance for Those rebates would mean $13.5 billion gether with my other colleagues in the dislocated workers. Centrist Coalition. Six of us from the would go into the pockets of those indi- It provides a refundable, advanceable Coalition were the ones who really viduals to help them with their prob- tax credit to all displaced workers, who were the nucleus of it—I was one of lems. And I am sure it would help stim- are eligible for unemployment insur- ulate the economy because they would ance, for the purchase of health insur- them with OLYMPIA SNOWE and SUSAN likely spend that money. ance—not just individuals who are eli- COLLINS, and on the Democrat side Some describe the reduction in mar- gible for COBRA coverage. there was JOHN BREAUX and two of my ginal rates as an awful thing because of colleagues who were former Governors, Individuals with access to health in- the fact that we would reduce the mar- surance through a spouse wouldn’t be ZELL MILLER, who was a former Gov- ginal rate from 271⁄2 down to 25 percent. eligible and couldn’t get the credit. ernor of Georgia, and BEN NELSON, the former Governor of Nebraska. I would like to point out that we are However, the credit is available to We decided we would try to put some- talking about single people who make unemployed people who do not have ac- thing together that would be fair, and between $28,000 and $68,000, and married cess to coverage through COBRA, since that would respond to the need to stim- couples who make between $47,000 and their employers did not provide health ulate the economy, and at the same $113,000. That is about one-third of the insurance or their employer went out time, respond to the human needs that taxpayers in this country, some 36 mil- of business. Under this bill, these indi- we see throughout this country. We lion people, who would have benefitted viduals would have been able to get a wanted to try to work something out, if we had gone forward with these rate 60-percent subsidy of their health in- and see if we could get something reductions. Between the 38 million surance costs without any cap on the through Congress and particularly beneficiaries of the rebate checks, and dollar amount of subsidy. through the Senate. the 36 million who would benefit from The proposal also includes reforms to We worked very conscientiously on the reduction in marginal rates, a total ensure that people have access to that package. We finally were able to of 74 million Americans would have health insurance coverage in the indi- get the ear of the White House and got been able to take advantage of this vidual market. If a person has 12 them to be part of this compromise package. months of employer-sponsored cov- package. Yesterday we were able to The thing I would really like to con- erage, rather than 18 months as under convince the leadership in the House of centrate on is the part of this package the current law, health insurers are re- Representatives that it was a fair that deals with health care. When we quired to issue a policy and not impose package, although a far cry from the got started debating the stimulus any preexisting condition exclusion. In package they had adopted. We had package, the House passed a package other words, if someone has a pre- hoped that, somehow, miraculously, that had something like $3 billion for existing exclusion for which they maybe, we would have had an oppor- health care. Likewise, the President’s would ordinarily be disqualified from tunity to vote on that package in the package had also had $3 billion. Our getting health insurance, this reform Senate. centrist package had $13.5 billion. The requires that they be able to obtain The Republican leader, Senator Democratic Finance Committee pro- health insurance. LOTT, talked about the fact that maybe posal was $16.7 billion. At the end of The Centrist and White House pro- during the period of time we are in re- the day, the Centrist Coalition and posal also includes $4 billion in en- cess, pressure will build up and maybe White House compromise package had hanced national emergency grants for we will get a bill passed. Or maybe the $21 billion in it for dislocated workers’ the States which Governors could use pressure will not be out there and we health care, money for the States for to help all workers—not just those eli- will not need to pass a piece of legisla- national emergency grants, including gible for the tax credit. They could use tion. However, I am here to tell you $4 billion to the States for Medicaid this to pay for health insurance in both that this legislation is needed now. funding. public and private plans. In other

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00262 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S14035 words, we would be paying $4 billion pated we would do so. They really did. The experts we consulted told us that out to the States so they can reach out They were counting on us, as did the fi- the problem with the economy right and help people in their respective nancial markets. I think from a psy- now is that corporations have too States who are not covered by some of chological point of view, we have really much capacity and that consumers the particular provisions in the stim- done a disservice to the American peo- have too little cash. That is it in a nut- ulus package. ple, particularly at a time when we are shell: Corporations have too much ca- Last if not least, the centrist pack- all going home to celebrate Christmas pacity; consumers have too little cash. age provides a $4.6 billion, one-time and the holidays. So we developed a plan to address those grant to assist states with their Med- What a lousy Christmas present we problems. icaid programs. are giving to the people of America. The plan we put together included I worked with the National Gov- Shame on us. I hope when we come tax cuts for businesses that invest and ernors Association and the Bush ad- back in January that we will make it create jobs in the near future. It had ministration to try to get them to un- up to them. They need our help. tax rebates for people who were left out derstand that the State governments I yield the floor. of the first round and unemployment are not like the Federal Government. I suggest the absence of a quorum. and health benefits for workers who States are in deep budgetary trouble The PRESIDING OFFICER. The have lost their jobs in this recession because they have to balance their clerk will call the roll. and as a result of the September 11 at- budgets every year. The money isn’t The assistant legislative clerk pro- tacks. there for them to take care of the ceeded to call the roll. Our plan did what economists say many needs they face. This $4.6 billion Mr. DASCHLE. Mr. President, I ask needs to be done—no more, no less. And grant would have gone out to the unanimous consent the order for the it met the bipartisan standards agreed States to help them provide Medicaid quorum call be rescinded. to by the budget leaders in both for the neediest of our brothers and sis- The PRESIDING OFFICER. Without Houses. ters. In many States they are going to objection, it is so ordered. Early this morning the House passed a far different plan. Their plan speeds have to cut Medicaid payments because f they simply don’t have the money up the tax cuts Congress passed last THE HOUSE ECONOMIC STIMULUS since their State treasuries are in such summer—months before the terrorist PACKAGE deep financial trouble. attacks. Their tax cuts give most of I hope my colleagues understand that Mr. DASCHLE. Mr. President, when the benefits to the wealthiest individ- this is not some kind of a game. We are people become doctors they take the uals, and they will get those tax cuts talking about real human beings. Hippocratic oath which, among other not just next year, but the year after This morning at a press conference, things, instructs them to ‘‘First, do no that, and the year after that, and the one of the reporters said to me: I un- harm.’’ year after that. That is the first part of derstand the problem with this stim- Maybe our Nation’s leaders in Wash- their plan. The second part of the House Repub- ulus bill is that the majority leader has ington need to take a similar oath if lican plan is to take the biggest cor- a problem with the philosophy of it. they intend to operate on the economy. porations in America and give them I said that this bill responds to most Sadly, our friends in the Republican billions of dollars in new tax breaks. of the concerns that have been raised Party are steadfast in their insistence Some profitable corporations would get by my colleagues from the other side of that we enact legislation that would harm our economy. Their plan takes permission not to pay taxes at all. the aisle. Under their plan, companies such as Think about it. When was the last more than $200 billion out of Social Se- Enron would get hundreds of millions time Congress gave serious consider- curity and uses it mostly for tax of taxpayer’s money. Republicans are ation to providing health care to unem- breaks for wealthy individuals and not proposing to do that for police offi- ployed workers? I don’t ever recall profitable corporations. It will do little cers, for firefighters, for postal work- such consideration before. But this to stimulate the economy, and even ers. They are not proposing it for hard- time, we have been able to get a Repub- less for the millions of newly unem- pressed, hard-working families. Maybe lican administration and a Republican ployed Americans. Their plan will not it would help if they did, but they are House of Representatives to consider make the recession better, but it will not. providing health insurance to unem- make the deficit worse. This impasse is They are proposing it for the biggest ployed workers. That was a break- regrettable—and it was completely corporations in America, with no through in terms of dealing with the avoidable. strings attached. The corporations do unemployed and displaced workers in Immediately after September 11, it not need to create a single job to get this country. became clear that the attacks dealt this gift. They can lay off workers and I happen to believe that if this pro- our economy—which already was slow- still not have to pay a dime in taxes posal had come from the other side of ing—a devastating blow. We all under the Republican plan. That kind the aisle and not from the centrist coa- agreed—Democrats and Republicans, of plan does not help the economy, and lition and the White House, many of House and Senate—that America need- it does not help workers. my colleagues on the other side of the ed an economic recovery plan. And Since September 11, nearly a million aisle would have been very much in Congress had a responsibility to pass American workers have lost their jobs. favor of this proposal. such a plan. Eight and a half million Americans are I am hoping, as we all go home and We asked the best financial thinkers now out of work. look into the eyes of the people who in the country, economic leaders, such Often, the biggest worry when Ameri- will come and see us because they have as Chairman Greenspan and Secretary cans lose their jobs is how to pay for lost their jobs, and are panicked about Rubin: What should such a package their health care. The average cost of health care for themselves and their contain? keeping health care coverage is half of families, that we start to understand Their advice led to the development the average monthly unemployment we have an obligation to touch their of a set of bipartisan principles for an check, half of a family’s total monthly lives. And to do this, the first thing we economic recovery plan. Those prin- income. That is why only 20 percent of need to do when we come back to this ciples were endorsed by the chairmen workers who are eligible for COBRA chamber is pass a stimulus package and ranking members of the Budget coverage purchase it. Most simply can- that addressed the needs of unem- Committees in both the House and the not afford it. ployed men and women. We need to re- Senate. The plan passed by the House pro- store people’s faith in their economy Rather than work together to de- vides an inadequate tax credit for indi- and restore people’s faith that we do velop a plan based on those principles, viduals to buy health care, and it care about them. Republicans in the House chose to leaves many of them at the whim of The thing that really bothers me withdraw from bipartisan negotiations the private insurance market. about our failure to pass a stimulus and pass their own highly partisan eco- Under their plan, health insurance package, is that so many people antici- nomic plan. will remain out of reach for millions of

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00263 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S14036 CONGRESSIONAL RECORD — SENATE December 20, 2001 laid-off workers. The credit would re- an emergency. We have waited. We in Congress have stalled our efforts to quire a parent to spend, on average, a have compromised. help these heroic workers. Senator quarter of their unemployment check At Republican insistence, we dropped DASCHLE proposed an effective and bal- for COBRA coverage. For most individ- the measures to strengthen America’s anced plan to stimulate the faltering uals not eligible for COBRA, the price homeland security from our plan, even economy. It had a majority of support tag would be even higher. though we believe such measures are in the Senate. One million displaced workers—part- essential to restoring confidence in our The provisions had the support of the time workers and recent hires—do not safety and our economy. We said: We nation’s most preeminent economists, even qualify for assistance under the are willing to support larger tax cuts including nine Nobel prize laureates. plan. to let businesses write off more of their But our Republican colleagues refused Survivors of victims of September 11 investment costs. to even debate it. They said it wasn’t do not qualify for assistance under We also made a significant conces- an ‘‘emergency.’’ their plan. Employees, whose hours sion on health care. We believe the best Listen to what the economists say. have been reduced and who have lost approach is to provide laid-off workers They say the House Republican pro- their health care as a result, do not with a direct subsidy to help pay for posal ‘‘will do little to assist a near qualify for their plan. COBRA premiums. But in the name of term recovery and is likely to under- Their individual tax credit discrimi- compromise, we said we would be will- mine growth in the economy.’’ But also nates against older and sicker workers. ing to move toward the Republican ap- listen to what our values say, that we An insurer can refuse to cover a sick proach again and again. We are willing cannot abandon our fellow citizens in worker, can charge exorbitant prices to adopt an employer tax credit as long their time of need. If there is any les- based on age and health, and can refuse as it will work and as long as it will son from the tragedy of September 11, to provide coverage for such basic pay 75 percent of health care costs. We it is this: that we are one American needs as pregnancy, prescription drugs, even said we will discuss additional tax community, and the backbone of that or mental health. cuts, such as the Domenici payroll tax community comes from average Ameri- All the worst practices of the insur- holiday, the charitable choice legisla- cans. ance industry are fair game in their tion, and others, as long as Repub- Millions of members of that commu- bill. What is worse, it would actually licans agreed to help workers. We made nity are hurting today because they discourage laid-off workers from tak- concession after concession after con- lost their jobs. Yet, our Republican ing a new job. Under the plan passed by cession to try to get an agreement both friends repeatedly say no to the very the House, the moment an individual sides could support and the President actions that would help these families goes back into the workforce, they lose could sign. and strengthen our economy at the their eligibility for the insurance pre- We have been willing to compromise same time. mium tax credit. on every part of this plan. The only Democrats tried to negotiate in good Say a recently laid-off worker has a issue we couldn’t compromise on was faith, but Republicans have been un- sick spouse; if he wants to go back to our fundamental principle: We could willing to support any recovery pack- work, he can’t because his new job may not support a plan that does not ade- age unless it contains tens of billions not offer health insurance for his wife. quately protect workers or help our of dollars for new tax breaks for He would have to choose between free- economy. wealthy individuals and corporations ing himself from unemployment and By insisting once again on a bloated that will jeopardize the nation’s long- losing health care his wife needs. package of tax cuts that lack real help term fiscal health and threaten Social That is their plan for health care. It for workers, the bill that passed in the Security and Medicare. We cannot let gives workers insufficient help, and it House indicates that perhaps Repub- Republicans hold laid-off workers hos- discourages responsibility in the proc- licans were never serious about achiev- tage to these irresponsible and costly ess. ing a negotiated compromise in the tax breaks. On jobless benefits, Republicans say first place. Republicans have also refused to their plan extends jobless benefits for Instead of political theatrics, instead agree to a proposal to provide real all laid-off workers. But it doesn’t. of writing another bill with no chance health insurance to the victims of this More than half of America’s laid-off of passing the Senate, instead of finger terrorist attack and the current eco- workers held part-time jobs over recent pointing and casting blame, we need to nomic downturn. Instead, they offer hires. They paid into the unemploy- come together and pass a real eco- only inadequate plans that leave work- ment system, but the House plan nomic recovery plan. We need to pass a ers with sky-high premiums for meager leaves them out. bill that helps the economy, helps health benefits, and that leave behind A week ago, the whole world paused workers, and meets the standards that the survivors of September 11 and to remember the victims of September we all agreed to at the beginning of many other of our most vulnerable 11, but the House-passed plan forgets this process. At the very least, we need workers. the economic victims of those attacks, a bill that first does no harm. The Democratic economic recovery and that is wrong. We may have missed our opportunity proposal puts money in the hands of Three days after September 11, we to get it done this year. If that is the the people who will spend it imme- passed a $15 billion airline bailout case, it is regrettable. But we will diately. package. Democrats tried to include again try. We will do all that we can to We strengthen unemployment insur- help for laid-off workers in that plan. get it done early next year, as we ance, and guarantee affordable health We were told: Now is not the time. should. care to laid-off workers on the front There will be another chance soon. We Mr. KENNEDY. Mr. President, it has lines of the economic battle. These are going to consider airline security. been over three months since the ter- workers deserve no less. We can help workers then. rorist atrocities of September 11. Since Every day that we fail to pass a stim- Reluctantly, we agreed to wait. We that day, the Nation’s workers have ulus package, we fail to help more laid- tried to include our package of help for been among the Nation’s most re- off workers. The unemployment rate is workers on airline security. Again, Re- spected heroes. They have come to- now 5.7 percent, a 33 percent increase publican colleagues filibustered. Again, gether in the face of new challenges, since the recession began. Over 8 mil- they said: This is not the time. We still risking their lives in the rescue and re- lion Americans will start the year out need to pass an economic stimulus covery efforts, and in too many cases, of work, through no fault of their own. package. We will help workers then. losing their lives. Our hearts are heavy Millions of Americans are left with no We took them at their word. We in- with those losses. paycheck and no golden parachute. We cluded jobless and health benefits for Our Nation’s workers have come to- cannot accept a plan that fails these laid-off workers in our economic recov- gether, and the American people workers. ery plan. But instead of joining us, Re- strongly support our efforts to give Health premiums can cost nearly $600 publicans voted to kill our proposal. them the support and assistance they a month for a family—most of an un- They said that helping workers is not deserve. But our Republican colleagues employment check. That is why only

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00264 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S14037 about one in five laid-off workers today The latest GOP plan is not an effort ual’s lost wages. A few weeks ago, the continue their coverage, even if they to stimulate the economy or help chairman of the Ways and Means Com- are eligible. Our plan covers 75 percent workers. It is a Republican game of po- mittee proposed temporarily sus- of the health care premium for those litical hot potato, to avoid blame. They pending income taxes on UI benefits as who are eligible to continue their cov- do not deserve credit for a misguided a way of raising these meager benefits. erage, but can’t afford the cost. plan that does nothing for the economy That step would be slower and less in- Some workers are not eligible for any and nothing for workers. clusive than a benefit increase, but at continuing health plan. Our plan also The latest House Republican bill fails least it acknowledged that we need to allows states to cover these vulnerable the economy. It fails the states, which raise benefit levels. However, even that workers. Taken together, our plan en- are struggling to balance their budgets. tax suspension has been dropped from sures that men and women who lose It fails the millions of workers who the latest Republican bill. Instead, their jobs don’t have to worry about have been laid off through no fault of that bill provides funding for unem- losing their health insurance as well. their own and are struggling to keep a ployment insurance that will most Our plan also provides fiscal relief to roof over their families’ heads and food likely be used for employer tax cuts, the States, which face serious budget on their tables. and to boost trust fund reserves in- shortfalls, yet must meet yearly bal- What it will do is blow a deep hole in stead of worker benefits. anced budget requirements. We in- our economy, estimated at $250 billion, The Republican health proposals are crease Medicaid payments, so that adding to deficits already expected also an empty promise to millions of States don’t have to cut back on cov- next year. All of it will have to come Americans. Their plan leaves out hun- erage, just as more workers need help. from the Social Security Trust Fund. dreds of thousands of unemployed The head of the Republican Governors’ Our Republican colleagues are more workers. It excludes the survivors of Association, Governor John Engler, concerned about helping wealthy cor- the September 11 attack. It excludes said without this plan, a stimulus porations and individuals than about low-wage and part-time workers. Even package is ‘‘robbing Peter to pay Paul, stimulating the economy or assisting for those are eligible, it provides an in- because States will have to cut critical laid-off workers. The new House Repub- adequate subsidy that most workers services, stifling the positive effect of lican bill continues to gut the cor- can’t afford to use. any stimulus measures enacted at the porate Alternative Minimum Tax. The Republican plan leaves deserving federal level.’’ They refuse to offer any true help for Americans who are not eligible for Our Democratic plan assures 13 workers, but wealthy corporations will COBRA to the flawed individual insur- weeks of extended unemployment bene- receive a promise that they won’t have ance market which charges thousands fits for laid-off workers. to pay any income tax in future years. of dollars for inadequate benefits. The current recession is already 9 The Republican bill also provides new Their plan does not prevent HMOs and months old, and the two million work- tax reductions for wealthy individuals. insurers from discriminating against ers who have run out of unemployment Only the top quarter of American fami- sick and older workers, or from charg- insurance benefits should not have to lies will receive any benefit from these ing unlimited premiums. In these difficult economic times, it continue to wait for our help. rate reductions and only the top 4.4 is wrong to ignore the needs of working Our plan also makes part-time and percent will receive the full benefit. families. It is wrong to repeatedly help low-wage workers eligible for unem- The House bill also maintains a 30 our Nation’s most prosperous firms, ployment benefits. In 1975, on average, percent bonus depreciation over the while ignoring the needs of millions of 75 percent of unemployed workers re- next 3 years, even though nobody be- workers. ceived unemployment benefits. Last lieves the recession will last 3 years. It is wrong to tell workers, who have year, the figure was only 38 percent. With no incentive for immediate ac- been laid off that they don’t deserve Expanding coverage to include part- tion, companies will not invest, now unemployment benefits. It is wrong to time and low-wage workers will benefit when the economy is weak. Instead, tell hard-working men and women that more than 600,000 more of those who they will get windfalls in later years. the price they must pay for the ter- have been laid-off, and it will also pro- At the same time, states will suffer rorist attack is to go without the vide additional economic stimulus. revenue losses for the full 3 years of health care they need and deserve. It is In addition, our plan supplements the this proposal, on top of the $35 to $50 wrong to offer only an empty promise current meager level of unemployment billion budget deficits they are already with unlimited premiums. It is wrong benefits, which do not replace enough facing. to enact a stimulus plan that says yes lost wages to keep workers out of pov- The Republican bill drains money to the greedy and no to the needy. erty. from States, but it provides little fiscal It is time to end the suffering of the In 2000, the national average unem- relief. Since states must balance their millions of families who have lost jobs ployment benefit only replaced 33 per- budgets even in recessions, the Repub- and health insurance in this economic cent of workers’ lost income, a steep lican plans will force still-larger budg- downturn. It is time for Congress and drop from the 46 percent of workers’ et cuts. These losses in revenue will al- the President to listen to the voices of wages replaced by jobless benefits dur- most certainly result in deep cuts for working families, instead of powerful ing the recessions of the 1970’s and Medicaid, education, and other vital special interests. 1980’s. State and local services. Over the past 3 months, Congress has During an economic crisis, unem- The Republican bill clearly short- acted to help affected industries re- ployed workers have few opportunities changes workers. It does little to pro- ceive the assistance that they need. to rejoin a declining workforce. They vide unemployment benefits or afford- Businesses have also received stimulus depend on unemployment benefits to able health care for laid-off workers. after stimulus from the Federal Re- live. Adding $150 a month to unemploy- Perhaps the best and purest form of serve which has cut interest rates 11 ment benefits will stimulate the econ- economic stimulus is to increase unem- times. But business clearly has excess omy and help these laid-off workers ployment benefits for families, because capacity today. Providing more bene- support their families while they look they are sure to spend it quickly. fits to business is not what will help for a new job. Yet, the unemployment insurance this country recover most effectively. While Democrats have been negoti- provisions in the bill passed by the Economic recovery will come best ating an economic recovery package in House do not accomplish nearly and quickest helping unemployed good faith, the House Republicans enough. The bill leaves out hundreds of workers pay for their groceries, their pulled the rug out from under those ne- thousands of low-wage and part-time mortgage and their health costs. We re- gotiations. They walked away from the workers who have paid into the unem- ject the Republican proposals, because negotiating table, made harsh personal ployment fund, but are not eligible for we cannot accept a plan that fails so attacks against our Democratic leader, benefits under it. many millions of workers. We owe it to and brought a separate Republican bill, The Republican plan fails to raise the all the Americans who have lost their largely a repackaging of the previous meager level of benefits, which cur- jobs to provide the support they need bill—back to the House floor. rently replace half or less of an individ- and deserve, and to provide it now.

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00265 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S14038 CONGRESSIONAL RECORD — SENATE December 20, 2001 Mr. ALLARD. Mr. President, at the for long term economic growth and de- tack TOM DASCHLE than admit that beginning of this year we passed a se- velopment. But our immediate action your bill is an insult to the working, ries of tax cuts. This was a strong ac- on this package is crucial. We must act everyday Americans who’ve been hon- tion in favor of hardworking Ameri- now, we must pass this stimulus bill ored in words countless times since cans. With the recent slowdown in the before Christmas, because this is what September 11th but insulted by the economy, we must again act, and act the American people need and deserve. first so-called stimulus bill that the quickly, for the American worker. His- I have commended my colleagues on Republican House passed by one vote. torically, Congress has failed to act the passage of the education school re- Then, Senate Republicans prevented a quick enough to provide economic re- form bill; a bill that leaves no child be- vote on a balanced package put to- lief when it is needed. Let us not repeat hind. We must now ensure that Amer- gether by the Fiance Committee. this error. It is imperative that we now ican families, workers, and the tempo- Now, the House is set to vote on a take this opportunity to act in unison rarily unemployed are not left behind. supposed ‘‘bipartisan compromise’’— to provide the American people with The President proposed an economic ‘‘bipartisan’’ because it may likely get the assistance they deserve. security package in October. Now I 51 or 52 votes here in the Senate. But it Several economic stimulus packages stand before you in December and tell is not a stimulus bill. It’s a tax cut bill have been proposed. The House has re- you that the American people can wait that will spend $211 billion over the cently passed a stimulus package that no longer. We must support our econ- next five years, with more than half of I feel will give the economy a much omy and our unemployed workers now. that cost coming after 2002, when the needed boost and provide dislocated I humbly ask my fellow Senators: Put administration believes that the econ- workers with the temporary assistance aside your differences and vote in uni- omy will have already recovered. A they require. I, as well as many of my son for the economy, for hardworking ‘‘bipartisan’’ bill is not one that barely colleagues, have some reservations displaced Americans, and for the Amer- gets enough votes for passage. A bipar- about certain items contained in this ican family. tisan bill is one like the education bill package. But for the sake of the econ- Mr. KERRY. Mr. President, at a time we passed yesterday, which received 87 omy and the American worker we must when so many Americans are out of votes. We were statesmen when we take quick and decisive action now. work, with out Nation at war and with, passed—almost unanimously—an emer- Overall, this stimulus package is a appropriately, calls for national unity, gency spending bill, a use-of-force reso- positive and much-needed step in the I regret to say I have to come to the lution, a counterterrorism bill, an air- right direction. floor to address what I feel is the ulti- line industry bailout, and an airport We must provide aid to dislocated mate breakdown on unity. Rather than security bill that will make the skies workers. In times of a slow economy, delivering a responsible stimulus pack- safer for millions of Americans. But in many hardworking Americans are age that is targeted and temporary, my a Senate as closely divided as this one, forced from their jobs through no fault colleagues on the other side of the aisle to call a bill ‘‘bipartisan’’ that gets two of their own. It is of the utmost impor- have been working overtime to turn a or three Democrats to vote for it is tance that we provide the support legitimate policy debate into a per- laughable. these hardworking Americans deserve. sonal exercise in demonization. They There are still other ways in which This package provides around 20 billion have worked hard to turn a battle of statesmanship can be exercised. States- dollars in aid to these displaced work- ideas into a battle of name calling. And manship can be resisting bad ideas that ers, which includes a measure that will their focus has been our leader TOM take advantage of national emotion to provide a 13 week extension to unem- DASCHLE. They have called him ob- do unacceptable special interest favors ployment benefits, supporting Amer- structionist—partisan—divisive—and for a favored political constituency. ican individuals and families in their worse. That, regrettably, is what the Repub- time of financial hardship. This also Now let me make clear for the lican stimulus bill is all about, al- provides support to Medicaid. This as- record, I’m not worried about TOM though they will tell you it is for work- sistance is a temporary and much need- DASCHLE. He’s tough and resilient like ers. But they do nothing to expand un- ed helping hand to those whose fami- the South Dakota prairie. He won’t employment insurance to the many lies and way of life are currently buckle, he won’t shrink from their thousands of laid-off workers who are threatened by the recent economic charges, and TOM DASCHLE knows that not currently eligible for benefits, and downturn. truth wins out in the end. He knows their ideas for health care simply will When we have taken care of these that what a different wartime leader, not work. And so we find ourselves di- dislocated workers, we must look for- Abraham Lincoln, said is still true: ‘‘If vided—not because TOM DASCHLE is an ward to what lies beyond the realm of the end brings me out all right, what is obstructionist, but because a decades- short-term relief. History has shown us said against me won’t amount to any- old partisan agenda which was on its time and time again that overall eco- thing. If the end brings me out wrong, last legs before September 11th has nomic growth is one of long term plan- ten angels swearing I was right would been revived under the guise of eco- ning. Here we have the opportunity to make no difference.’’ By that measure, nomic security. Average Americans are provide the economy with a short and TOM DASCHLE will do just fine. But being denied unemployment insurance long term boost via a 10 year invest- let’s be honest. This really isn’t about and health care because Republicans ment stimulus package. This would TOM DASCHLE. It’s about a Republican want to hold out for more for those provide almost $160 billion worth of Party that knows their agenda won’t who are doing fine as it is. So we have support, through the year 2011, to small stand up to the light of day and so they an impasse—we are fighting for every- businesses and taxpayers. This package need to make the debate about some- one to be treated fairly—they’re fight- calls for increased tax cuts for individ- thing else. ing to reward those already rewarded uals, $60 billion of tax relief in Fiscal Can’t pass drilling in an Arctic Ref- with no guarantee it will be spent or Year 2002 and $112 billion over the next uge on its merits? Then do it because invested in a way that has any imme- 10 years. This package will provide you’re patriotic. Can’t do that? Attach diate stimulative impact on an econ- health care tax credits so that dis- it to a ban on human cloning. Have omy that needs it. No wonder they’d placed workers and their families do that cynical effort rejected almost rather just attack TOM DASCHLE—it is not go without medical coverage. Fur- unanimously, then just blame the easier than dealing in the truth and thermore, this package provides in- Democratic Leader. Can’t ram moving this economy forward and help- creases in investment opportunities backloaded, retroactive corporate tax ing America’s workers. and net operating loss flexibility for giveaways through Congress while ig- It doesn’t need to be this way. In small businesses. noring workers? Well, that must be be- early October, three weeks after the This package, aptly named Economic cause TOM DASCHLE is a partisan. Bet- terrorist attacks, Democrats and Re- Stimulus and Aid to Dislocated Work- ter to demonize the Democratic leader publicans in the House and Senate ers, is a good start. In the future, we than acknowledge that your stimulus agreed to a list of bipartisan principles will need to return to these issues. We bill is unacceptable because it won’t for stimulus. These included the belief will need to provide more incentives stimulate the economy. Better to at- that the package should be temporary,

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00266 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S14039 help those most vulnerable, impact the Common sense and common decency and I am going to need extended unemploy- economy quickly, be broad-based, and tells us now is not the time for a cor- ment benefits. include out-year offsets. The Repub- porate grab-bag of tax cuts, or for re- My plant in Forrest City is in the process lican leader of the Ways and Means visiting a debate about future marginal of closing. My last day was July 27. Since Committee in the House abandoned tax rates—particularly when these rate then, I have spent several hours a day trying to find another job. Things are tough right those bipartisan negotiations in order cuts would do nothing for more than now. Plus, I have another problem—I am a to push through his own partisan pack- three-quarters of the population. It is few years away from retirement. I’m too age by one vote. It is his truculence, incumbent upon us to act in the best young to retire but too old to get another and the insistence of the Republicans interests of our country as a whole, not job. I know that age discrimination is that we reduce the corporate Alter- in the interests of a select few. All against the law (wink, wink), but the truth native Minimum Tax and cut indi- Americans want to see this economy is that not even the government will hire a vidual tax rates even more than we did get moving again, and no Americans sixty year old. in June, that have led directly to the want to see this country begin a new In a couple of months, my $300 a week un- situation we find ourselves in today. chapter in our history where we hold employment will run out. When that hap- Mr. President, 700,000 Americans lost pens, I will have to dip into my retirement back health insurance and unemploy- funds—if there’s anything left by then—to their jobs in October and November ment benefits in tough times because pay the bills. An extension of benefits will alone. The unemployment rate is not Democrats won’t agree to further per- help some, and would be appreciated. What I at 5.7 percent. The country is at war, manent tax cuts. want more than government help, however, we have an economy in negative Let’s put things straight and meet is a job. growth, and we are on the verge of re- the objectives of the American people If your staff knows of agencies, websites, turning to an era of deficits after fi- and not the objectives of an ideological etc., which specialize in senior jobseekers’ nally putting our fiscal house in order. minority, and let’s stop demonizing need, I would appreciate knowing about We should not be passing large, perma- those who disagree with us. We owe the them. I have a lifetime of knowledge and ex- nent tax cuts unless we can be certain American people better than what they perience to offer a company, and I have kept that the cuts will have a stimulative up with the latest philosophies of manufac- have been given at one of the most im- turing, as well. There are just more people impact. The tax cuts proposed by most portant times in our Nation’s history, than jobs right now. Republicans would not have that ef- and it’s time the Congress delivered. This is NOT how and when I expected to re- fect, since most of the costs occur after Mr. HUTCHINSON. Mr. President, tire! 2002. Again, this is not a stimulus bill— there is no question that we are now in Best Wishes—Mike it is a $200 billion tax cut disguised as the middle of a recession. Even before Some simply write and say: ‘‘Please, a stimulus bill. I still hope that the the terrorist attacks 3 months ago, I urge you help get an economic recov- Senate can work to develop a bipar- economic growth had slowed dramati- ery bill passed now.’’ tisan agreement, and I commend my cally and unemployment was rising. While each person has their own indi- leader for his continued efforts. We owe Since September 11, the number of pay- vidual story to tell about the effects it to working Americans everywhere to roll jobs has declined by an average of this recession is having on them, they pass a responsible bill. We know that a 314,000 per month, unemployment has are all saying the same thing: We need real stimulus bill should contain some increased by an average of 392,000 per help now! We don’t have time for you tax relief for businesses, provided that month, and consumer confidence is at to play politics with this one. People’s it will help spur new investment or ad- its lowest level in 7 years. lives and livelihoods are at stake. dress temporary cashflow concerns. We In response to their pessimistic mood One of, quite possible, the only good know that we should provide some and uncertainty about the future, con- things to come out of the horrific ter- temporary tax relief to those families sumers stayed away from shopping cen- rorist attacks that occurred on Sep- who are likely to spend the money, ters and retail sales fell by 2.4 percent tember 11th is that we saw, even if for thus helping generate some additional in September, the largest one-month a limited time, real bipartisanship demand. We know that we need to help drop since 1987. In Arkansas, more than unemployed workers make ends meet, occur here on Capitol Hill. Well guess three-fourths of employers indicate what . . . the American people saw bi- and make sure that they don’t lose they have no plans to expand in the their health insurance as a result of partisanship in action and now expect next 6 months, whether by adding jobs, it, and deserve it, every day. Biparti- the ripple effects from the terrorist at- making capital investments, or seek- sanship was once a word that was only tacks of September 11th. ing new business opportunities. On Oc- spoken by those in political office. It is And we know that we need to tempo- tober 5, the President publicly urged now being used by nearly every person rarily offset some of the impact of the Congress to send him an economic that contacts me. We need to listen to current downturn on the states, by in- stimulus package that encourages con- these people and do what they sent us creasing the federal Medicaid matching sumer spending, promotes business in- here to do. We need to work together rate, or FMAP. Let’s be clear: Laid-off vestment, and helps dislocated work- today, not a month from now, and send workers cannot contribute to economic ers. recovery. The answer is not to sit back The House of Representatives has to the President an economic stimulus and wait for economic benefits to now twice passed economic stimulus package before we go home for the trickle down to workers already legislation. I ask you, Mr. President, year. thrown off the job. Instead we must in- how many more Americans have to A constituent of mine recently wrote vest in health care, unemployment in- lose their jobs? How many more busi- me and said: ‘‘Please quit bickering surance, and worker retraining to help nesses have to file for bankruptcy? and pass an economic stimulus pack- put money in their pockets and bring How many more families do we have to age. Senators, it seems that the ‘ball is dislocated workers back into the eco- see turned away from their own doc- in your court’. Thank you, and God nomic mainstream of this country. We tor’s office because their medical in- Bless America.’’ I think he summed it need to do that even if we can’t agree surance has run out before we put up rather nicely. on how to boost the economy through petty politics aside and do something Mr. President, the ball is in our tax cuts. That’s why I introduced the to help those that so badly need our court, and we need to do something Putting Americans First Act, to take help. with it. We need to pass an economic these worker protections out of the I have received hundreds of letters, e- stimulus package today. stimulus debate and provide a guar- mails, faxes, and phone calls from peo- Mr. ROCKEFELLER. Mr. President, I antee of immediate relief for those who ple all over my home State of Arkan- rise today to express my serious dis- have been hurt by the economic reces- sas, as I’m sure have all of my col- appointment that we could not reach sion. The legislation would empower leagues, from people who need our help agreement on a stimulus package that the states to expand unemployment and need it now. Take for example an would both help America’s workers and compensation and health insurance e-mail I recently received from a con- encourage immediate business invest- coverage and provide help to states in stituent in West Memphis who wrote: ment to strengthen our economy. I in- which welfare caseloads are sharply in- I am one of the 450,000 Americans who were tend to keep fighting for real help for creasing. laid off before the September 11th attack, the workers who have lost their jobs

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00267 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S14040 CONGRESSIONAL RECORD — SENATE December 20, 2001 and need health care coverage until failed individual market, armed with consideration they deserve from the they get the assistance they need. limited resources and zero leverage. House Republican Leadership. And I think an economic recovery pack- Older and sicker workers would have some useful business tax incentives, age is still important work to do. Had been left entirely out of luck with that that combined with additional assist- my Republican counterparts been will- kind of approach. I am frustrated that ance for the unemployed, could have ing to stay at the negotiating table and House Leaders insisted on promoting effectively stimulated our economy, keep talking, I would not have left my their ideology over existing programs won’t pass this year. post until we reached agreement. As a that could have been used to provide I had hoped we could have put our conferee on this unique Leadership reliable health care coverage to work- partisan and ideological differences Conference, I am especially dis- ers who need it. aside to speed relief to workers and our appointed that our work was aban- I believe our economy would benefit ailing economy. I will not give up until doned by the Republican Leadership. from additional stimulus in the form of we help the people who are waiting to Unfortunately, the House Leadership 1-year business incentives and addi- get their fair share of Federal assist- chose to walk out on the tough work of tional individual tax cuts for those tax- ance, just as other sectors of our econ- negotiation and move a partisan bill payers who were left out and did not omy have been provided with Federal that includes numerous, multiyear tax benefit from the rebate checks last aid in this unusual time. cuts for corporations and for the summer. I believe we could have come Today, in an effort to at least provide wealthiest Americans. The House bill together on a package that would have a short-term extension of unemploy- would do little to actually stimulate helped workers even as it provided ment benefits to workers on the verge our economy and would not provide business tax cuts like bonus deprecia- of running out of assistance and facing real health care coverage for workers tion and expensing for small busi- the holidays, the Senate Majority in need of meaningful assistance to re- nesses. We could have helped many Leader asked unanimous consent to tain their health insurance. businesses who are having a hard time take up and pass a 13-week extension of Moreover, from what I can learn of in this economy by extending the existing unemployment benefits. He the legislation which passed just hours carryback period for net operating asked for a one-time, 13-week exten- ago, it will have significant costs after losses, NOLs. I also firmly believe we sion of existing benefits, no benefit im- 2002, as much as $67 billion. That could have reached accommodation on provements, no expanded eligibility, means substantial deficit spending to the issue of AMT relief, if only the just a straight, short-term extension. finance corporate tax relief and addi- House Leadership had been willing to The Senate Republican Leader ob- tional tax cuts for the top 25 percent of accept real health care and unemploy- jected to that request, despite the fact all taxpayers. Nearly 80 percent of ment coverage as part of the package. that we have frequently extended these West Virginia taxpayers would not get But the House chose to move forward unemployment benefits in the past. a dime from the tax rate changes pro- with a plan that consists primarily of That tells you something about why posed by the House Republicans, and to tax cuts, not help for the workers who the stimulus conference did not add insult to injury, their payroll taxes have been promised for months, prom- produce legislation. American workers would pay for the corporate tax breaks. ised by both the President and Con- are still waiting for the help they need. I cannot support raiding billions of dol- gress, that we would attend to their lars from the Social Security and needs after the tragedy of September f Medicare Trust Funds. 11. Instead, the House bill’s cost over 2001 IN REVIEW: A SENATE (MOST- Nearly a million people have lost both 5 and 10 years is over 90 percent LY) EQUAL TO THESE HISTORIC their jobs in recent months as a result tax cuts. Less than half of those tax TIMES of the economic downturn that was ex- cuts would come in 2002 because it is a acerbated by the September 11 ter- back-loaded plan, not the temporary Mr. DASCHLE. Mr. President, we are rorist attacks on our Nation. Those stimulus measure Congress and the all tired. This has been a long day in families deserve the help that the Sen- President had mutually agreed was the what has been a long week and a long ate Finance Committee package pro- goal of a stimulus package. Common session. But before we go our separate vided, substantial help to pay for sense tells us that tax cuts in 2003 don’t ways for the holidays, I want to thank health insurance that they can count stimulate the economy during our cur- my colleagues for the support and on and a temporary extension and im- rent downturn. There is strong evi- kindness they have shown me during provement of unemployment benefits, dence that the House’s proposed tax my short time as majority leader. which includes improved benefits and cuts to higher income individuals I thank our staffs, the many hard- makes part-time and low wage workers would not stimulate the economy in working men and women who enable us eligible. Unemployed Americans de- the out years, either, because wealthier to do our jobs—from the Capitol Police serve access to affordable health care individuals tend to save rather than to the Official Reporters who tran- and to unemployment benefits as they spend. scribe our debates, the people in the seek new employment. Finally, the House bill does not suffi- cloakroom, the people who serve our I deeply regret that the House Lead- ciently address the desperate financial meals, the doorkeepers, the pages, and ership conferees could not, or I should conditions of the States, or the fact so many others. The public may not say, would not, accept the Senate’s that some of the business tax provi- know their names, but we know the worker package that provides imme- sions in the bill will actually mean the Senate could not function without diate, but temporary health care cov- States lose billions in revenue. The them. erage for displaced workers and ex- House bill, as far as I can estimate, On a very personal note, I want to tended and improved unemployment does not even offset those costs. States say a special word of thanks to my own insurance. The House approach on are facing a collective, roughly $50 bil- staff. In the last 3 months, they have health care was inadequate and un- lion deficit, and experts believe the experienced the horrors of September workable. It would not have guaran- House bill will cost States. Estimates 11 as we all did, but they have under- teed health care coverage to a single are that West Virginia alone could lose gone an additional challenge few of us solitary worker. It failed to include $35 million in State revenues because ever have, or will, face. needed reforms to the insurance mar- of policies embedded in the House Re- Two months ago my staff, along with ket to make insurance affordable, or to publican package. That means West members of Senator FEINGOLD’s staff, ensure that a decent benefit package Virginia and other States would be and law enforcement officers, were ex- was available. more likely to cut health care to the posed to lethal levels of anthrax when I am deeply frustrated that the Re- poor and other low income programs a letter containing that deadly bac- publican conferees wanted to leave just when the economy makes the pro- teria was opened in my office. I am workers at the mercy of the insurance grams most essential. pleased to report that they are all industry. Under the House bill, workers In sum, workers did not get the help healthy today, and I am proud to say would have had to, on their own, seek they need or deserve from the House that they have continued to work affordable coverage on the current, Republicans’ bill. They did not get the throughout all of this time.

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00268 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S14041 They are victims of terrorism. Yet greatest experiment, now the world’s We talk a lot about families that they have spent the last 2 months dedi- oldest democracy. have fallen on hard times in the last cated to the effort to protect the rest I suspect we have all wondered, at year, especially those who are eco- of America from a truly similar fate. least once or twice since September 11, nomic victims of September 11. And we Their courage and their grace is truly whether the men and women of this should be concerned about these fami- heroic and a source of inspiration to Senate are equal to these times. It lies. me. would be hubris not to wonder. But what about America’s farm and They are extraordinary people who As this year ends, we can take some ranch families? The recession didn’t have endured extraordinary cir- pride knowing that we were largely start two quarters ago for them. They cumstances. I could not be more proud equal to our times. have been battling near-Depression of them. In the days following the attacks, we conditions in the farm economy for We started this year appropriately in demonstrated greater unity than I years now. unusual circumstances. For 17 days be- have ever experienced in my years in Prices for many commodities are tween the day this Congress was sworn Congress. We worked with each other, lower today than any time since the in and the day President Bush was and with the President, for the good of Government started keeping records, sworn in, Democrats held the majority the Nation. back in 1910. in the Senate. I joked back then that I We gave the President the authority If you don’t know who these families intended to savor every one of my 17 to use force to defeat terrorism. are, come to South Dakota. You’ll see: days as majority leader. As it turns We gave law enforcement new tools they are some of the hardest-working out, those days were just a preamble. and authority to pursue terrorists. people in this country. And they need For nearly 6 months now, I have We passed billions of dollars in emer- our help. again had the rare privilege of serving gency aid to help the communities and We didn’t pass a terrorism insurance as majority leader of this Senate. families and business devastated by the bill. While I can’t say I have enjoyed every attacks of September 11th rebuild and We didn’t finish work on the Pa- day of these last 6 months—our coun- recover. tients’ Bill of Rights. It is stuck in a try has experienced too much sadness We also passed legislation to keep conference committee—along with for that to be true—I am honored to the airlines flying—and to make air- campaign finance reform. have had the chance to work with all. ports safer. We didn’t increase the minimum Those measures will help our nation I am proud of much of what we have wage. recover from the terrorist attacks, and been able to achieve together. We didn’t pass real election reform to help prevent future attacks. We made history this year, not just protect the right of every American to We also passed other important once, but over and over again. It was a vote and have that vote counted. measures. year ago this month that the Supreme As we leave for the holidays, I want Court issued its ruling—the first time Earlier this week, we sent the Presi- dent a new, bipartisan bill to strength- to say to my colleagues, and to the in history that the Supreme Court had American people: We recognize that intervened to settle a Presidential en America’s public schools. The new No Child Left Behind Act marks the these are critically important issues. election. We started this Congress last They will not go away. When this Sen- January as the first 50–50 Senate in our first major overhaul of our Nation’s education system in more than 35 ate returns next year, these are among Nation’s history. Some observers pre- the items that will top our agenda. dicted we would never be able to agree years. Senator STABENOW spoke earlier on a plan to divide power fairly and ef- It is a blueprint for real educational today about an idea some of her con- ficiently, but we did. progress that includes good ideas from stituents proposed to her. They sug- Then in late May, Senator JEFFORDS both parties. More importantly, it re- gested America create ‘‘living memo- made his historic and extraordinary de- flects the experiences and the needs of rials’’ to the victims of September 11. cision to leave his party and become America’s schoolchildren, parents, These ‘‘living memorials’’ would take the Senate’s only officially Inde- teachers, employers and many others the form of community service pendent Member. Never before had ma- who care deeply about America’s projects. Through them, the love and jority control of the Senate changed on schools. courage of the people who died on Sep- the basis of one Senator’s decision. We can all take some pride in having tember 11 will continue to live on. Again, we made history, and we made been a part of those bipartisan suc- it work. cesses. It is a beautiful and fitting way to re- Then came the horrific morning of At the same time, we must acknowl- member the victims. I encourage all of September 11. Even now, more than 3 edge, there have been occasions on my colleagues to support it. months later, it is hard to imagine the which we were not equal to our times. But there is perhaps an even more magnitude of that loss. If you read one There have been too many instances fitting way for us to remember the vic- name every minute, it would take more when partisanship has prevented us tims of September 11. We must recap- than 3 days to read the list of all those from doing what needs to be done. That ture the spirit of bipartisanship that who died on September 11. is deeply regrettable. allowed us to accomplish so much to- A little more than a month later, the We should have passed a genuine eco- gether in the first weeks and months anthrax letter was opened in my office. nomic recovery plan to lift up Amer- after the attacks. The Hart Building became the site of ica’s economy and help laid-off work- The rescue workers did their job. the largest anthrax spill anywhere, ers. In the first weeks after the ter- The firefighters continue to do their ever, and the largest biological weap- rorist attacks, we worked together to job. ons attack in our Nation’s history. craft such a plan. Even after Repub- We must put aside the partisanship More than once during these 6 lican leaders walked away from that and do our job. months I have found myself thinking bipartisan effort, we continued to try Again, I thank my colleagues for about the words of America’s second to reach out to them. what we were able to do together this President, John Adams. We compromised repeatedly on the year. And I wish them, and the Amer- In 1774, John Adams wrote in his details of our proposal—all to no avail. ican people, a peaceful holiday season. diary of his concerns over the quality In the end, we could not accept a plan I yield the floor. of the members of the Continental Con- that takes $211 billion out of Social Se- The PRESIDING OFFICER. The Sen- gress, ‘‘We have not men for these curity and gives most of it, in the form ator from Alaska is recognized. times,’’ he worried. ‘‘We are deficient of tax cuts, to the wealthiest individ- Mr. MURKOWSKI. Mr. President, I in genius, in education, in travel, in uals and corporations in this country. ask that I be allowed to speak for fortune, in everything.’’ And our colleagues would accept no about 20 minutes. That is how our Founders saw them- less. The PRESIDING OFFICER (Mr. selves: deficient in almost every way. We should have passed a farm bill CORZINE). Without objection, it is so or- Yet they went on to create the world’s this year. dered.

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00269 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S14042 CONGRESSIONAL RECORD — SENATE December 20, 2001 ENERGY that I was committed to bringing a bi- football away, but that was not the Mr. MURKOWSKI. Mr. President, I partisan measure out of the Energy case. But it was fall and it was football very much appreciate the remarks of Committee in time for the debate prior season, and the majority leader finally the majority leader. He indicated that to the July 4 recess. pulled the plug on the pretense of con- we should have passed a farm bill. We Then, of course, we had a little cern. should have passed an energy bill as change of control here, and our current It has always been clear that a bipar- well, Mr. President. Unfortunately, the majority leader didn’t seem quite as tisan majority of the Committee on majority leader did not mention that. anxious or concerned with energy legis- Energy and Natural Resources has been I think it is fitting to once again dis- lation. The Committee on Energy and ready and willing to report comprehen- cuss the priorities that were laid before Natural Resources, rather than pro- sive legislation with a balance of con- this body by our President—trade pro- ceeding to a markup, either on my bi- servation efficiencies, research and de- motion, stimulus, energy legislation. partisan measure or the new chair- velopment, and domestic production. So as we look at where we are in the man’s more limited bill, suddenly When we on both sides of the aisle Senate today, clearly, we have not began to repeat hearings—in one case, stated and indicated our intent to press been responsive to our very popular hearings from the same witnesses who for a firm schedule to report the legis- President, nor have we been very re- had appeared before us only a few lation, then the majority leader, which sponsive to the Nation. Indeed, we la- weeks previously. in my opinion was in defiance of the bored several days on the farm bill. The majority leader still indicated a rules of the Senate and of the Com- Some have suggested that perhaps it is willingness to proceed even if it did not mittee on Energy and Natural Re- easier to address the extended benefits have the same sense of urgency. So on sources, simply shut the Energy Com- associated with that farm bill than the July 31, the majority leader stated: mittee down. realities associated with our increased The Democratic caucus is very supportive I have been around here 21 years, Mr. dependence on foreign oil. of finding ways with which to pursue addi- President. I have never heard of that As I look at the session we have just tional energy production. I think production particular initiation by a majority completed, I think many of my col- has to be part of any comprehensive energy leader of shutting a committee down. leagues would agree that as we look at policy. On October 9, without consultation the completion of the year and the re- This was encouraging since the only or advance notice, the members of the alization that we are coming back next bipartisan bill that I had introduced in- Committee on Energy and Natural Re- year, we should review in some detail cluded significant domestic production. sources were told they were irrelevant just what progress has been made rel- In retrospect, we all should have and would not be allowed to consider ative to the priorities that were laid by known that when the majority leader any legislation for the remainder of the our President before this body. got around to finally introducing en- session. When this Congress began, I intro- ergy legislation, as he did several I read from a press release from the duced a comprehensive bipartisan en- weeks ago, the only production that he chairman of the committee, Senator ergy measure with the senior Senator would be supporting would be, evi- BINGAMAN: from Louisiana, Mr. BREAUX. Later, dently, foreign production from Iran At the request of the majority leader, Sen- the ranking member of the Energy and elsewhere in the OPEC nations, ator DASCHLE, the Senate Energy and Nat- Committee, Senator BINGAMAN, along and the only jobs and economic stim- ural Resources Committee, Chairman JEFF with Senator DASCHLE, introduced leg- ulus created would be in Canada, as he BINGAMAN, today suspended any further islation that touched on many issues indicated support for a pipeline, not markup on energy legislation for this session of Congress. that were covered in our bill. That was specifying the route and as a con- March. sequence, obviously favoring the alter- I remind my colleagues, there is no Shortly thereafter, Senator DASCHLE native in Canada, which is very much provision in the Senate rules for the indicated that those problems, and opposed by my colleagues, Senator majority leader to abolish the work of more, demonstrate the overwhelming STEVENS, Representative YOUNG, and a standing committee by edict. That is need for a new and comprehensive en- the Governor of the State of Alaska. what happened. The rules of the Senate ergy policy. America is faced with a My point is, in their legislation they require each committee to meet at grave energy policy that will get worse left the route selection neutral, and least once a month before the Senate if we do not act. Prior to the Memorial this is the one favored by the Cana- and while the Senate is in session to Day recess, the Committee on Energy dians. On August 1 and 2, the Com- address the business of the committee. and Natural Resources had almost mittee on Energy and Natural Re- The Committee on Energy and Nat- completed its hearing schedule and we sources finally began consideration of ural Resources has not met in business were discussing dates to mark up com- research and development provisions of session since August 2. The business of prehensive energy legislation. Again, energy legislation. The majority leader the committee is, among other things, the majority leader was supportive. On even announced on August 1: energy. I wonder the reason for the re- May 16, he stated: There is a great deal of interest in our cau- luctance of the majority leader. Was he The problem needs comprehensive atten- cus in moving a comprehensive energy bill in fearful the Energy Committee might tion and the problem needs bipartisan solu- the early part of the fall. The Energy Com- report bipartisan legislation, for cer- tions. We are concerned about the lack of mittee is going to be completing its work tainly no amendment from this Sen- consultation to date. There has been none. about mid-September. ator or any other Republican could be There doesn’t appear to be any real sense of He was certainly correct in stating reported without some support from urgency here. the Energy Committee would be com- the Democratic side. It is clear the I find that a rather curious state- pleting its work in mid-September, but Democrats control the committee by a ment since the only bipartisan measure little did we know what he meant was 12-to-11 ratio. I can only guess perhaps remained one that I had introduced that he intended to shut down the com- the majority leader would have been with Senator BREAUX of Louisiana, and mittee and prevent us from reporting better off requiring the committee to I was receiving complaints about how comprehensive bipartisan energy legis- approve any amendments perhaps by aggressive was the hearing schedule we lation. two-thirds of the Democratic members, were holding. When we returned in September and as he seems to have set on other issues. In May, we received the administra- our schedule then continued to slide, It has now been 41⁄2 months since the tion’s comprehensive national energy the majority leader once again said on Committee on Energy and Natural Re- policy, and both the Senate and the September 6: sources has held a business meeting, House began to prepare for debate on I have indicated all along that it is our and we are no closer to consideration comprehensive, bipartisan, national se- hope and expectation to bring up energy be- of comprehensive legislation than we curity energy legislation. We were fore the end of the session, and that is still were when the majority leader assumed pressured, perhaps, because the House my intention. control of the Senate. had done its job. It had reported out its Like Charlie Brown, once again we The majority leader has indicated bill, H.R. 4, the energy bill. I stated believed that Lucy would not pull the and has finally introduced a warmed-

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00270 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S14043 over version of the legislation that he The reforms of the 1970s were de- What is he attempting to do? He is cosponsored almost 9 months ago. The signed precisely to curb the dictatorial attempting to shoot down our aircraft. majority leader has again perhaps indi- powers of committee chairmen, as our He has almost succeeded, but it almost cated that he intends to move energy distinguished President pro tempore seems as though we take his oil, put it legislation if there is time. Clearly, noted in his history of the Senate. in our aircraft, enforce the no-fly zone, there is no more time. This is it. We The Vice President hit the nail on which is like an air wall blockade. are out. the head a few weeks ago in his discus- What does he do with our money? He On the other hand, he has indicated a sion with Tim Russert on ‘‘Meet the pays the Republican Army, develops a willingness when we return to take up Press’’ when he said: weapons capability, a biological capa- energy sometime in January or Feb- But there is a disagreement with respect to bility, and aims it at our ally Israel. It ruary. Now we hear we are going to go Senator DASCHLE on energy. The House of is beyond me why this Nation and our back to an Agriculture bill. We have Representatives has moved and passed an en- foreign policy should rely on Saddam asked the majority leader to give us an ergy bill last summer. The Senate has not acted. Tom pulled it out of the Energy Com- Hussein and Iraq for our energy needs indication of his willingness to take up mittee so they are not considering in com- when we have the capability at home. a bill and give us an up-or-down vote mittee an energy bill at this point. The Finally, I think it is interesting to on it, but the indications are we are House has passed a stimulus package. The reflect on where we are in the eco- going to have to have 60 votes. Senate has yet to act. The House just passed nomic stimulus. We could not reach a It is extraordinary that this body in trade promotion authority. The Senate has conclusion. Yet our economy is in re- times of national security and the tre- yet to act. In the energy area, it is extraor- cession. We need a stimulus. It would mendous activity associated with the dinarily important that we move for energy help get us back on the right track. Mideast, the OPEC nations, Israel, Af- security, energy independence. We are never The discussions have focused on this going to get all the way over to energy inde- ghanistan, Iraq, as we look to those pendence, but given the volatility of the for some time. We have talked about areas for our security interests, would Mideast and our increasing dependence on ‘‘immediate.’’ We have talked about have to have a dictate, but 51 votes on that part of the world for oil, it is important ‘‘temporary.’’ We have talked about the issue will not do it. We are going to we go forward, for example, with things like the creation of jobs, increasing con- need 60 votes. ANWR. sumer spending or otherwise increasing We are going to get those 60 votes if I am embarrassed at the lack of ac- domestic product. I think we make a that is what it takes, but I do not know tion of this body as we conclude this big mistake if we only focus on those of another time when the national en- year in not having taken up an energy stimulus ideas that are of a temporary ergy security of the Nation was at risk bill. I grant the farm bill is important, nature. We should also focus on stim- requiring more than 50 votes. A simple but the farm bill is not about to expire. ulus elements that will ensure the majority evidently will not do. We do not have an energy bill in this long-term economic growth of our Let me make it clear to the majority country. We should have an energy bill. country. Otherwise, we will have to leader—and I have the greatest respect I assume the majority leader will come to the Senate at the end of each for him—I am prepared to come back continue to find items he thinks are economic cycle and perhaps have this and spend day after day, night after more important than our national en- debate over again. night debating an energy policy in this ergy security. We have seen it: Rail- One such permanent stimulus would Senate and get the job done. This is a road retirement, raising the price of be the establishment of a national en- priority of our President, a priority of milk to consumers through dairy com- ergy strategy that ensures energy our Nation, a priority of our veterans, pacts. As I indicated, next year we are prices that remain constant, afford- and a priority of our labor groups. going to address this issue and we will able, reliable sources of energy which A few weeks ago both the President seek votes on the issue. I do not be- play an important role in fostering eco- and Vice President called for the Sen- lieve, on behalf of our constituents, we nomic growth and development. ate to end this partisan charade and should duck these difficult decisions. I We have seen high prices. We have address energy legislation. know the majority leader shares those seen sectors of our economy. We have The President said in a radio address views as well. seen the situation in California. We not so long ago: Some time ago, this body voted to have seen increasing costs. We have Last spring, I sent to Congress a com- initiate sanctions on Iran and some seen the development in the OPEC prehensive energy plan that encourages con- other nations in the Mideast that countries of a cartel where, when they servation and greater energy independence. produce oil because we were not satis- want the price to go up, they decrease The House has acted. The Senate has not. fied with their record of human rights, the supply. The President of the United States is we were not satisfied with their record High energy prices reduce consumer correct. Rather than a spirited debate of full disclosure relative to the devel- disposable income, reduce spending, on comprehensive energy legislation, opment of weapons of mass destruc- and inhibit economic growth. Our reported from the Energy Committee, tion. I proposed an amendment to in- friend Martin Feldstein, the former developed in an open process, the ma- clude Iraq. At the time during the de- Chairman of the Council on Economic jority leader has savaged the reforms bate, the majority leader committed to Advisers, noted since the end of World of the 1970s to craft partisan legislation me he would at some time give me an War II economic downturns have coin- behind closed doors with only selected up-or-down vote. cided with energy price increases. This special interests allowed to partici- I have communicated with the major- most recent economic downturn is no pate. ity leader and asked him for the up-or- exception. We have seen a rapid in- There is a process to get advice from down vote. I have not received a re- crease in oil prices occurring the first members of the Energy Committee, sponse. I hope I will receive a response half of this year, followed by similar and that is in a business meeting. very soon because I think it is impor- increases in natural gas and elec- When the majority leader says his leg- tant to recognize the situation with re- tricity. islation represents input from the En- gard to Iraq. We know Saddam Hussein The result of data from the Bureau of ergy Committee, he is not being accu- is developing weapons of mass destruc- Economic Statistics shows that while rate. Make no mistake, the Energy tion. We have evidence of that, even the GDP grew at 5.7 percent in the sec- Committee has had no input on this though we have not had a U.N. inspec- ond quarter of 2000, the most recent legislation that has been introduced by tor in that country for some time. We data showed the GDP has declined by the majority leader. I accept that the know he smuggled the oil. 1.1 percent for the third quarter. So I bulk of the bill was drafted by our com- Many Americans perhaps do not rec- think we acknowledge we are in a re- mittee, but the chairman is not the ognize we are importing nearly a mil- cession. committee, and it is clear neither he lion barrels of oil a day from Saddam This is consistent with findings of nor our majority leader evidently Hussein, yet we are enforcing a no-fly the National Bureau of Economic Re- trusts the makeup of the committee to zone over that country. We are putting search that, on an average, for every 10 address it in a bipartisan manner and the lives of many of our young men and percent increase in oil prices, economic vote it out. women at risk. output falls by 2.5 percent, real wages

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00271 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S14044 CONGRESSIONAL RECORD — SENATE December 20, 2001 drop by 1 percent, and increases in oil sequence of leasing off Federal land. minutes, after which I be recognized, prices reduce the number of hours This would have been paid for by com- and that mine be the last speech of the worked and increase unemployment. petitive bidding by the oil companies. day. I don’t mind relieving the Senator We recall what has happened over a It was a jobs issue. It would have cre- in the Chair, so I will ask that the Sen- period of time, and as a consequence of ated 250,000 new jobs in this country. ator from Alabama go ahead of me. that we could generalize that high The contribution of the steel indus- Mr. SESSIONS. I am delighted to fol- prices for energy and natural gas cause try is extremely significant, as well. low the Senator from West Virginia. significant impacts on those sectors of We have a stimulus package not even Mr. BYRD. I want to make my speech our economy that do not depend on oil. considered in the debate because we about Christmas in the main. We refer America and the world move on oil. could not have a debate. We did not to this as a holiday. It is not a holiday We have other sources of energy for have an energy bill. to me. This is Christmas, which is electricity. We have seen impacts It would have created 250,000 new jobs something different. It marks the across the board. Energy spending by and $3.3 billion in new Federal bid bo- greatest event that ever occurred in American families increased by nearly nuses. And the bottom line is, not a red the history of man. It split the cen- 30 percent in 2000. Heating bills tripled penny by the taxpayer. That is the turies in two. There is B.C. and there is for many Americans, particularly in kind of stimulus we need in this coun- A.D. It was a tremendous event. I be- the Northeast. Small businesses had a try. lieve in Christ. I am a Christian—not a great increase in costs associated with As we look at the end of the year, we very worthy one, but a Christian. I re- energy. We have seen this. Thousands have to recognize the obligation that spect those who are of a different reli- gion. I respect those who believe that of jobs were lost. These high energy we have to come back and do a better Christ was a historic figure but not the prices were the result of one unavoid- job. We need an energy bill. We need it Messiah, but a prophet. That is all able fact: Our energy supplies failed to quickly. We need a stimulus in this right. They have a right to believe meet our growing energy demands. country. We could and should consider For 10 years following the passage of that. a genuine stimulus that results in jobs Both would agree that it was a tre- the Energy Policy Act of 1992, U.S. de- that do not cost the taxpayer money, mendous event. This is something be- mand for energy increased over 17 per- and as a consequence spurs the econ- yond just being a holiday. When some- cent, while total energy production in- omy. one wishes me happy holidays, I say: creased only 2.3 percent. By the end of I hope as we address our New Year’s No, Happy Christmas. last year, we had simply run out of fuel resolutions we can recognize the House I want to make a statement about for the sputtering American economy. has done its job in energy legislation. Christmas, so I ask unanimous consent That has changed as a consequence of We did not do our job in the Senate. I the Senator from Alabama proceed for the tragedy of September 11, but it will am very disappointed. I am sure the 10 minutes and I follow him. not stay that way. OPEC will initiate President and the American public I ask the question of the minority, the cartel to again decrease supplies. shares that disappointment. while I am on the floor, Is there an in- We have seen what happened to our We have not been honest with the tention on that side of the aisle to seek economy as a consequence of energy American people because we have a cri- unanimous consent by Senator BROWN- price increases. We know a national en- sis in energy. Our national security is BACK? If there is still the intention to ergy strategy that balances supply and at risk. We are risking the lives of men make that request, I want to be here to demand could reduce threats and fu- and women in the Middle East over object to it; if there is not, I may go on ture recessions. Alan Greenspan noted this energy crisis. We should address it my way happy. on November 13: here and relieve that dependence. I make that consent and I will see to As economic policymakers understand the I wish all a happy and joyous holiday it that the Chair gets relief. focus on the impact of the tragedy of Sep- season, and I yield the floor. The PRESIDING OFFICER. Without tember 11 and the further weakening of the The PRESIDING OFFICER. The Sen- objection, it is so ordered. economy that follows these events, it is es- ator from West Virginia. f sential that we do not lose sight of policies Mr. BYRD. Mr. President, I wish to needed to ensure long-term economic ECONOMIC STIMULUS ask the distinguished Senator from growth. Mr. SESSIONS. I thank the distin- Alabama, Mr. SESSIONS, how long he One of the most important objectives for guished Senator from West Virginia. I those policies should be assured availability will be speaking. The reason I ask, I thank him for his fidelity to his faith of energy. know the Presiding Officer has an en- and for his fidelity to this Senate and gagement. He has to leave within an- As a consequence, the U.S. relies on the courtesies and rules that need to be other 20 minutes, from what I under- foreign imported oil with more than followed to make sure we live up to the stand. one-half of its petroleum needs. Much high ideals on which this institution How much time does the Senator de- of this comes from the Middle East, was founded. He, more than anyone I sire? Saudi Arabia, Iraq, and Kuwait. know, has taught us the history, and Mr. SESSIONS. Twelve minutes Consider the consequences of the oil the importance, of what we are about. embargo in 1973. At the time, tensions would be sufficient. His courtesy to me, a first-term Sen- Mr. BYRD. Let me deliver my speech. ran high in the Middle East. Then we ator, is typical of his many courtesies. were involved in the war on terrorism. I ask unanimous consent, am I correct I simply say how deeply disappointed It makes sense to consider our en- that the Presiding Officer needs to I have been that we will be leaving this ergy security in the context of an eco- leave the Presiding Chair no later than body before Christmas without having nomic stimulus package. We have not 7:45, or is it 7:50? passed a stimulus package. Experts done that. It makes sense to ensure our The PRESIDING OFFICER. At 7:50. have said a good stimulus package, $75 economic security by ensuring the Mr. BYRD. I ask unanimous consent to $100 billion, would preserve 300,000 availability of affordable energy sup- the distinguished Senator from Ala- jobs in this country. That is a lot of plies. bama may proceed for not to exceed 12 jobs. Those people, if they are working, One aspect we have not considered in minutes and I will do something not will be happier. Those families will be this equation is the contribution of often done around here; I do it quite happier. The homes will be happier. ANWR. Talking about stimulus, there often. I wait and wait and wait, real- They will pay taxes. They will pay is hardly any single item we could have izing I can get recognition almost any State and local sales taxes and other come up with that would have been a time I want, but I am usually willing taxes. They will pay Federal taxes. It more significant and genuine stimulus to accommodate another Senator, even will help us run our government. package than opening ANWR in my if that Senator is on the Republican But if they lose their jobs, there will State of Alaska. side. Not many will accommodate me be a sadness and an unease in their What would it have done? It would in that fashion, but I am glad to ac- homes, a difficulty that otherwise have created $3.3 billion in Federal bo- commodate them. would not take place, and the govern- nuses, money that would have come in I ask consent that the Senator from ment itself, State, local and Federal, from the Federal Treasury as a con- Alabama have not to exceed, say, 10 will lose revenue.

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00272 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S14045 It is a big deal if we can affect the cent, that would be a $1-an-hour pay came to me and said: JEFF, I think you economy. I do not think there is any raise with no deductions from it. But have to do something about the energy doubt. I have been convinced for a long we have never been able to figure out situation. We are too dependent on time in the projections that we could how to do it. Middle Eastern oil. They have the abil- achieve a 1-percent or a half-percent They finally passed, a day or so ago, ity to disrupt our economy and to af- increase in the gross domestic product an amendment that would allow that fect our foreign policy and damage us by passing the stimulus package. That to happen, but only 5 percent take ad- in ways that we ought to defend is important. I believe we should pass a vantage of it; 95 percent get their cred- against. You need to do something to bill. it the next year. reduce our dependence on middle east- No less than 2 weeks ago I became So it is good public policy, in my ern oil. That is something I believe in deeply concerned that we might actu- view, that they get their credit early. I very strongly. ally leave this body without a bill believe in this time of stimulus, if we The bill the Senator from Alaska, being passed. At first I did not think would make a conversion and pump in Mr. MURKOWSKI, has so eloquently ar- that was possible. We brought up a bill $15 billion or $20 billion extra on low- gued for has conservation, reduced use and disagreed, the House had passed a income people’s paychecks, many of of energy, as well as increased produc- bill, and some here didn’t like it but whom may be out of work for a while, tion. Both of those steps together will negotiators were working together. get another job, lose work and find an- help reduce our dependence on foreign The Finance Committee chairman and other job, they would have more money oil. It will help reduce the amount of ranking member, the majority leader, to take care of their families with and American wealth that goes out of our the Democratic leader and the Repub- it would not cost the budget of the country to purchase this substance lican leader, they were all working and country, the Treasury of the country, that it would be better if we could pur- talking and surely a bill would pass, I any money in the long run. It would chase at home and keep that wealth at thought. They would work out their shift about $15 billion or more into this home. differences. fiscal year but that money would be I believe we have had a number of op- Frankly, I never believed exactly from the next fiscal year, and we would portunities to do better. I wanted a what was in that bill, if it met a few have $15 billion left to spend next year. farm bill passed desperately. The Presi- simple principles, would make a lot of It is good public policy and a superb dent has made clear that we do not difference. Probably, another $100 bil- stimulus that moves money forward have a fight over money on the farm lion, another $75 billion into the econ- and saves money next year. bill. We are prepared to honor the $75 omy we would have made an impact. We would have put in another item. billion set-aside in our budget over 10 There was no doubt in my mind if a We proposed reducing the median in- years for farm programs. But there are middle-income family would have got- come tax rate from 27 percent to 25 per- some problems and serious disagree- ten a 2-percent reduction in the cent. It was planned to be done any- ments about some of the policy that amount of money withheld from their way. was in that bill. taxes they would have more money and We extended the unemployment ben- We could not get debate on it. Every they would spend it. efits, as most of the proposals have, for amendment was rejected virtually on a Because of my concern, I offered my an additional 13 weeks. We provided in- party line vote, so we ended up not own bill. As a matter of fact, we were surance and health benefits. We pro- passing an Agriculture bill. We will here one night until midnight. I sat vided a $5 billion fund for national have to come back and work on that around with some colleagues and re- emergency grants for States to help because we need an Agriculture bill. fined my ideas and four of us intro- people who have been displaced or lost We do not need to go into the summer duced a stimulus package. It was sim- their job. And we advanced the plans without an Agriculture bill. So I am ple. It did not have a lot of complexity for 1 year for the child tax credit. This sure we will be back on that early next to it. Frankly, I did not think anybody child tax credit is a plan that would in- year. But it could have been done this could find anything wrong with any of fuse about $6 billion or $8 billion into time. it or would object to a bit of it. I said: the economy for families with children. So I will just say there were some We offered this bill; let’s just vote on Those were some of the provisions we great things accomplished this year: that. put in that plan. It could have passed. the education bill, a bipartisan effort It had a number of provisions in it I don’t believe anybody would have that passed. The tax reduction was a that I thought were worthwhile. My fa- been upset about it. It had no business historic empowerment of individual vorite contribution, what I believe in provisions in it that would upset any- working Americans, a victory for the and would like to see accomplished and body. It did have some depreciation ad- individual against the State and the really needs to be accomplished as part vancement. power the State has to extract what of this package, or it may be more dif- I say we ought to have done some- they earn from them and spend as the ficult to pass, is the advanced payment thing. That bill, other bills, the bill State wishes. But it would empower of the earned-income tax credit. that almost reached conclusion, the bi- them to utilize the wealth they have The Presiding Officer understands partisan approach that passed the earned in the way they choose. If we these finance issues a lot better than I, House last night, was sent over here, had not done that, I am confident our but I can understand a little bit about and we did not get a vote. So I am very economy would be struggling even low-income working Americans. They disappointed. more today. are at a point with the earned-income I believe the leadership of this Sen- I see the distinguished Senator from tax credit where the Federal Govern- ate made a mistake. We were not even West Virginia is ready to speak, and I ment gives them a tax credit. It is $31 allowed to vote on it or debate it. Ev- am interested in hearing his remarks. I billion a year. It amounts to, for an av- erybody said we needed a stimulus thank the Chair. I thank the Senator erage family with one child, a $2,000- package, but we never even got to from West Virginia for his time. I per-year tax credit. They can get it bring the bill up for a vote. We had a wanted to express these remarks before when they work or on their tax refund number of Democratic Senators and we recessed today. a year after they work. Since the certainly a large number of Demo- I yield the floor. earned-income tax credit was designed cratic House Members who supported The PRESIDING OFFICER. The Sen- to encourage work, there has been a this bipartisan bill, and we could have ator from West Virginia. strong feeling it ought to go on the passed it, but we did not and it is a f wage that they earn. great disappointment to me. What has happened, however, is that I was pleased the Senator from Alas- THE PRESIDING OFFICER OF THE we have never accomplished that. Only ka discussed the energy bill that did SENATE 5 percent of the workers take advan- not pass this time, under the very same Mr. BYRD. Mr. President, first I tage of the opportunity to get their factors. I was in Mobile Monday of this thank our Presiding Officer, the Sen- earned-income tax credit on their pay- week. On two different occasions a real ator from New Jersey. He always has a check. If it were given to them 100 per- estate person and a very fine doctor clean desk. What does that mean? That

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00273 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S14046 CONGRESSIONAL RECORD — SENATE December 20, 2001 means he is paying attention to what of great pain, she remained a fighter more money in other fields but who is going on in the Senate. He is not at and a friend to all—someone who loved want to give something to the Nation, the desk reading a magazine or a piece the Senate and someone who loved life. who want to serve. Here is the place— of paper, a newspaper. He is alert. I Gloria Gillespie knew that each day in this Chamber—where Senators, since watched him. This is the way he al- is a gift. Each day is a gift. She cher- 1859, have served the Nation. ways presides. That is the way Pre- ished each waking moment. She found So I salute all Senators. I salute the siding Officers ought to conduct them- great joy in seeing people alive. From leaders of the Senate—our Democratic selves when gracing that desk in this, childhood, Gloria possessed a deep and and Republican leaders of the majority the greatest legislative, parliamentary, abiding faith in God. That strong faith and the minority. deliberative body in the world. made her courageous and deeply appre- I have been a majority leader. I have He does it with a great dignity and ciative of the sheer wonder of the world been a minority leader. I have been a style. I thank him. He sits there many that God created. majority whip. I know the kinds of evenings at this hour when most Sen- Her unfailing optimism was con- problems with which they are con- ators have gone on their separate ways. tagious, as was her impish laughter. fronted every day. I know the demands I thank him. She brought a special kind of joy to all that are made upon them by their col- I thank the other Members of the of her endeavors. She made the load a leagues. I know of the expectations new class—I say it in that fashion— little lighter for all who knew her. that surround this Chamber and the ex- who have worked at that desk. There Gloria is survived by her parents, pectations of our leaders. They spend a are some of them—I will not call their C.H. and Mary Frances Gillespie of lot of time protecting our interests and names at the moment—who make me Berea, KY, one niece, Lisa Gillespie, working on behalf of our interests. proud of the Senate. The fact is, the and one nephew, David Gillespie. They spend many hours here when the way they preside is a model for legisla- Along with all the members of her rest of us are probably sleeping. They tive bodies everywhere to watch. Too family and her legions of friends, I carry to their beds problems that we often as we sit in that chair, we forget shall miss Gloria. But I shall think of don’t know about. Many demands are that millions of people are watching her during this Christmas season, and I made on these leaders. I sit here and I hear criticism of our the Senate. They are watching the shall never, never, never forget her. majority leader. He is the majority Chair. f I have been a member of the State leader and was chosen by his colleagues MARIAN BERTRAM for this job. He sets the schedule. He legislature in West Virginia and the decides the program. West Virginia House of Delegates. Mr. BYRD. Mr. President, I rise to re- So not only do I salute him for the Those people in the State legislatures member a longtime Senate employee who passed away on October 15 of this great work that he does on behalf of watch the Presiding Officer of this the Nation every day, but I also have body. year. Marian Bertram dedicated 27 years of her life to public service and empathy with him. I know he must go This is the premier upper house in home troubled at night—troubled be- to the United States Senate. She began the world. They should see the premier cause he could not fulfill the expecta- her work at the Democratic Policy act of presiding on the part of the Sen- tions of this Senator, or that Senator, Committee in 1971, eventually serving ator who sits at that desk. Teachers, troubled because he is sometimes un- as the chief clerk of that committee. college professors, students, political justly criticized. I had all of these She retired from the Senate in October column writers, and editorialists things happen to me. of 1998. watch. We ought to remember that So I thank TOM DASCHLE. He can’t be when we are sitting in that chair. Marian Bertram served four Demo- everything to everybody. He has to do I congratulate the Presiding Officer. cratic Leaders, beginning with Mike what he has to do. He has to do what he I congratulate Senator CORZINE. I Mansfield and continuing on through thinks is best. He has to promote the thank him. my own tenure as Democratic Leader, interests of the Senate. He has to pro- f George Mitchell’s, and Senator mote the interests of getting on with DASCHLE’s leader terms. GLORIA GILLESPIE the work. She gained a deep understanding of So does our majority whip. These are Mr. BYRD. Mr. President, as we head the Senate’s intricacies during those two fine Senators. There isn’t a Sen- toward Christmas and the close of this years and researched and wrote the ator here who doesn’t think that he session of Congress and this turbulent Democratic Policy Committee’s Legis- could do that job right there better— and tragic first year of the new millen- lative Bulletin. She also shouldered the that majority leader’s job. Every Sen- nium, I want to pause to remember a challenging task of producing voting ator thinks he can do it better. Every young woman who passed away this records and vote analyses for Demo- Senator thinks he can do the whip’s job summer. Gloria Margaret Gillespie was cratic Members. better. But they do the best they can. a friend of mine. Marian was an able and very dedi- I want to pray for them in this sea- Many Members of the Senate and cated Senate employee and through it son that we are entering. I want them staff will remember Gloria, for she all she was unfailing good humored and to know that we Senators, upon reflec- worked in the Senate hair salon for 29 professional. tion, cannot help but thank them for years. She cut my hair. Probably for My sympathy goes out to her many the work they do. the first time that my hair was ever friends in the Washington area who Somebody has to do this so we can cut at that salon she cut—28 years or 29 were shocked and saddened by her un- leave the Senate when our speeches are years ago. She worked there for 29 timely death this fall. We shall remem- made and go home. But they have to years. ber her with great affection and with stay. She loved her work, and she loved her thanks for the many years she gave so Senator REID, the whip, stays around friends and she loved life. Gloria had a unselfishly to this institution. here. He stays around the Chamber. He cheerful, loyal, uplifting spirit. And f renders a tremendous service to his her time on this Earth was far, far too country. brief. She was only 54 years of age SENATORS AND SENATE LEADERS I want to take this moment to thank when she passed away in Berea, KY, Mr. BYRD. Mr. President, let me say him, to thank TOM DASCHLE, to thank this past July—54. just a word or so before I make my the Republican leader, to thank the Five years ago, Gloria began a battle final speech of this year. I thank all Republican whip, to thank the Sen- with cancer. She had smoking-related Senators on both sides of the aisle for ators—the ladies and the gentlemen— lung cancer. But instead of with- the work they do on behalf of this who preside, all of the members of the drawing, she used her illness as a great Nation. They work here at a sac- staffs in the cloakrooms and in the forum to warn others about the dan- rifice. We are paid well, but there are hallways, in the corridors, and those gers of smoking. many here who could earn much more who provide the security of this Cham- Gloria did not win her battle with money in other fields. There are many ber, and the people who work in it. I cancer, but to the end, even in the face who come here after earning much thank them all.

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00274 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S14047 Somebody appreciates you. You may And so no matter what our religion, Going for three—’’ But no, not realize it, but somebody is watch- I think we ought to understand this From the room, far back, a gray-haired man ing you. Somebody appreciates what was more than just an ordinary hap- Came forward and picked up the bow; you are doing. The people at the desk pening, more than just an ordinary Then, wiping the dust from the old violin, And tightening the loose strings, up there, somebody appreciates you. man. He played a melody pure and sweet So I just want to express that appre- At its core, the season has not As a caroling angel sings. ciation. changed. Christmas will always be, to The music ceased, and the auctioneer, f me, about a family that found no shel- With a voice that was quiet and low, ter but a manger, and also about a Said, ‘‘What am I bid for the old violin?’’ THE REAL STORY OF CHRISTMAS newborn child who would become, in And he held it up with the bow. Mr. BYRD. Now, Mr. President, we my viewpoint, the Saviour of the ‘‘A thousand dollars, and who’ll make it two? are just a few days from Christmas, a world. Two thousand! and who’ll make it three? Three thousand, once, three thousand, twice, few days from the morning when mil- As Luke wrote in his Gospel: lions of children tumble out of their And going, and gone,’’ said he. And the angel said unto them, Fear not: The people cheered, but some of them cried, warm beds, awaken their parents, rush for, behold, I bring you good tidings of great ‘‘We do not quite understand to the family room, and look, with joy, which shall be to all people. For unto What changed its worth.’’ Swift came the gleeful delight, at the bows, the boxes, you is born this day in the city of David a reply: and the bundles under the tree. Savior, which is Christ the Lord. ‘‘The touch of a master’s hand.’’ This is one of my favorite times of Good tidings. Great joy. How many And many a man with life out of tune, the year—a time of joy, a time of love, people think of those words standing in And battered and scarred with sin, a time of family gatherings and warm the long lines of their local shopping Is auctioned cheap to the thoughtless crowd, memories. Much like the old violin. malls? A ‘‘mess of pottage,’’ a glass of wine; I remember the Christmas presents I worry that too many of us, in the A game—and he travels on. waiting for me when I was a boy back hectic pace of the modern world, have He is ‘‘going’’ once, and ‘‘going’’ twice, there during the Great Depression in forgotten the true spirit of Christmas, He’s ‘‘going’’ and almost ‘‘gone.’’ the hard hills of Mercer County in have forgotten what this is really all But the Master comes, and the foolish crowd southern West Virginia. There was not about. They have forgotten the true Never can quite understand an electric light in the house—no elec- meaning. The story of the birth of The worth of a soul and the change that’s tricity, no running water, but there Christ has been overshadowed by the wrought was an orange or a drawing book or a pressures and the strains of a commer- By the touch of the Master’s hand. set of pencils or a set of water colors, cialized holiday. Mr. President, I yield the floor. or a geography book that I had been Families will spend hours at shop- The PRESIDENT pro tempore. The wanting. ping malls, waiting in long lines, rath- Senator from New Jersey. My family did not have great mate- er than in the company of loved ones or f rial wealth, but we always had a in a church or in a place of worship COMMENDING SENATOR BYRD wealth of love. The two old people who celebrating in song or prayer. They Mr. CORZINE. Mr. President, it is raised me, they are in Heaven tonight. will become obsessed with purchases my honor to address you in the chair. They are in Heaven. We did not have and the gifts they may receive. Chil- Your remarks with regard to Christ- fancy toys in those days. We celebrated dren will meticulously craft the perfect mas are ones that stir one’s heart and the season for its true meaning: the list of toys and will worry that grand- feelings. I am the lucky one to be here birth of the Christ Child. ma will again, this Christmas, buy this evening to hear you speak. I hope Now, I respect every man’s or wom- them another sweater that they will everyone across America has the sense an’s religion. I respect their religion. If never wear. Sadly, the Christmas sea- of how you love this body, the great it is Moslem, I respect their religion. I son has become the shopping season. A Senate, and the people we serve. can listen to the prayers of any church- time for joy and spiritual reflection I suggest the absence of a quorum. man or any layman. I can respect them has drowned in the shallow waters of The PRESIDENT pro tempore. The all because who am I? I am unworthy greed. clerk will call the roll. of God’s blessings. I can respect them. That does not need to be. We can re- The legislative clerk proceeded to So my wife Erma and I have passed turn to the true meaning of Christmas. call the roll. those lessons on to our children, our During this holiday, I urge all Ameri- The PRESIDENT pro tempore. In my grandchildren, and our great-grand- cans to reflect on their families and capacity as a Senator from the State of children. their faith—whatever their faith—and West Virginia, I ask unanimous con- In recent years, however, that mean- to read the story of Jesus’ birth in the sent that the order for the quorum call ing has been drowned out by a society Gospels. Look up into the night sky be rescinded. that is focused more on the perfect gift and pick the Star of Wonder that led There being no objection, the quorum or the latest gadget or the hottest-sell- the wise men to Bethlehem to offer call is waived. ing toy. Our attention is on store sales gifts to the Christ Child. Join with The Senator from Nevada. and Santa Claus rather than on the family and friends to sing a Christmas f true meaning of Christmas. carol, share a meal, and reflect on the RECESS SUBJECT TO THE CALL OF Now, I am a Christian. I believe in blessings we have been given. Visit THE CHAIR Christ. I am not very worthy, but I be- each other, one another’s church or Mr. REID. Mr. President, I ask unan- lieve in Him. I respect anyone who does synagogue or whatever. Go join and imous consent that the Senate stand in not. I respect anyone who believes that visit and enjoy this season. Perhaps recess subject to the call of the Chair. He was, that He lived, He was a historic the materialism that has come to figure, He was a prophet. They may not There being no objection, the Senate, dominate the season will fade and we at 8:11 p.m., recessed subject to the call believe He is the Messiah—I do—but it can begin to truly understand the great does not lesson my respect for others. of the Chair and reassembled at 9:37 and glorious story of Christmas. p.m. when called to order by the Presi- I will listen to them at any time. But And so, Mr. President: I think all of us have to agree that this dent pro tempore. ’Twas battered and scarred, and the auc- The PRESIDENT pro tempore. The was a great event that happened that tioneer Senator from Nevada is recognized. split the centuries in two, and the Thought it scarcely worth his while years that were before Christ are num- To waste much time on the old violin, f bered, the years that are after Christ But held it up with a smile: EXECUTIVE SESSION numbered differently. This was some, ‘‘What am I bidden, good folks,’’ he cried, ‘‘Who’ll start the bidding for me?’’ some happening. No matter what we ‘‘A dollar, a dollar’’; then, ‘‘Two!’’ ‘‘Only NOMINATIONS DISCHARGED believe or do not believe, it is still rec- two? ognized by all that there was a man Two dollars, and who’ll make it three? Mr. REID. Mr. President, I ask unan- named Jesus Christ. Three dollars, once; three dollars, twice; imous consent that the Senate proceed

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00275 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S14048 CONGRESSIONAL RECORD — SENATE December 20, 2001 to executive session and that the HELP has also reduced the agency’s reach and im- sional artists, but many will become grateful Committee be discharged from further pact. How do you view the current funding? audiences for the arts. A richer artistic cul- consideration of the nomination of Mi- Will you advocate for higher spending levels ture can be brought into being with con- for the agency? sistent effort over time in this way. chael Hammond to be the chairperson Although the Endowment’s financial re- Should I have the honor of serving as the of the National Endowment for the sources are limited, it has a national voice chairman of the National Endowment for the Arts. I ask that the nomination be con- that I believe should articulate clearly and Arts, I will explore how the agency can pro- firmed, the motion to reconsider be strongly the importance of the arts in en- vide national leadership in promoting such laid upon the table, that any state- riching the lives and shaping the aesthetic hands-on educational programs in the arts ments thereon be printed in the taste of all Americans. It is now more impor- for children from preschool through high RECORD, and that the President be im- tant than ever that the Endowment make school. The country has vast educational re- mediately notified of the Senate’s ac- performances and presentations of the high- sources both public and private for this un- est artistic quality accessible to our urban, dertaking. These need to be surveyed, docu- tion. rural and suburban communities. mented and enhanced. The PRESIDENT pro tempore. With- The Endowment’s financial capability is It is my understanding that grants for arts out objection, it is so ordered. important both for the direct project grants education are now funded under two new The nomination was considered and it makes and for the matching money grants Arts Endowment funding programs—Chal- confirmed, as follows: generated from other sources. I would advo- lenge America and Arts Learning. The state cate for spending levels that are more ade- arts agencies also contribute very signifi- DEPARTMENT OF HEALTH AND HUMAN SERVICES quate in fulfilling the full gamut of the En- cantly to educational efforts in the arts, as Committee on Health, Education, Labor, dowment’s goals. Should I have the honor to do a number of private organizations and and Pensions: be the chairman, I would look for ways to programs. The Endowment can advocate and Michael Hammond, of Texas, to be Chair- stimulate more public and private support promote models for cooperation among these person of the National Endowment for the for the arts and arts education. groups and incentives for imaginative ac- Arts for a term of four years. 4. How do you think the Endowment should tion. Mr. KENNEDY. Mr. President, I wel- best balance its various programs which sup- From my own studies in neuroscience, I come this opportunity to express my port the creation and presentation of the know there is a growing body of information strong support for the confirmation of arts with providing broad access to the arts? concerning cognitive development among Each of these tasks is crucial and the bal- preschoolers showing their ability to dis- Michael Hammond to be Chairman of ance between them, though difficult, must be criminate clearly among musical sounds, the National Endowment for the Arts, reconsidered regularly. A full review of the visual colors, movements and language ele- and I urge the Senate to confirm him. Endowment’s activities in both these areas ments in a way that mandates programs of Mr. Hammond is a distinguished (creation/presentation and broad access) learning in the arts at very early ages. I composer, conductor, arts educator and would be a high priority for me. Further, I would actively pursue this agenda and at- scientist. His is the Dean of the Shep- would pursue these goals nationwide in tempt to work closely with that growing herd School of Music at Rice Univer- rural, urban and suburban communities, in body of scientists and educators throughout sity, where he is also a professor of close cooperation with state and local arts the world who are concerned with such early groups and educational organizations com- cognitive development. music and a faculty fellow in neuro- mitted to the arts. 7. How do you think the agency can best science. 5. What do you think are the highest pro- support K–12 education programs? Mr. Hammond is an excellent choice gramming priorities for the agency? First, there must be an accurate assess- to lead the Arts Endowment. He is also In the days following September 11, in ment of the programs and institutions, both one of the nation’s leaders in the field ceremony after ceremony, Americans turned public and private, which are addressing the of cognitive development and he under- to the arts, especially music and poetry, for matter of arts education for school-age stands the vast potential of the arts in expressions of our anguish over our human young people in each region of the country. losses and for confirmation of our common Working with these groups and with the early childhood education. I welcome commitments as Americans. It is essential state and regional arts agencies, the Endow- his leadership, and I believe that he that the Arts Endowment help provide op- ment can help to set goals for instruction will be an outstanding chairman for portunities for our citizens to experience and experience at each stage of a student’s this very important agency. works whose meaning transcends the mo- life, in each of the arts. The Endowment can During the consideration of his nomi- mentary and speak to us as human beings, encourage cooperative efforts among arts nation by the Committee on Health, sharing one another’s mortality and longing groups to get the job done. It is a chal- Education, Labor and Pensions, I sub- for beauty and understanding. lenging task that will require all our avail- At the same time the Endowment must, I mitted a number of questions to Mr. able institutional resources as well as a new believe, work to create conditions favorable level of aspiration from all quarters, includ- Hammond. His responses are impres- to our professional artists—conditions in ing parents, schools, museums, community sive and I ask unanimous consent that which they will be inspired to fulfill their centers, performing arts organizations, they may be printed in the RECORD. deepest artistic aspirations, encouraging all church groups, Boys and Girls Clubs and There being no objection, the mate- of us to understand ourselves and one an- many others. Much valuable work is already rial was ordered to be printed in the other in continuously new ways. If I am being done in many parts of the country. RECORD, as follows: given the opportunity to serve, I will also These efforts can serve as models for others. try to direct the Endowment’s efforts toward I believe the Endowment can lead in cer- QUESTIONS BY SENATOR EDWARD KENNEDY FOR enlivening the artistic culture of the nation tain aspects by initiating conversations, en- MICHAEL HAMMOND, NOMINEE FOR CHAIRMAN from the ground up by strengthening all couraging fine teaching, generating funding OF THE NATIONAL ENDOWMENT FOR THE ARTS forms of educational activity in the arts, es- from corporations, foundations, private ben- 1. Do you support the mission of the Na- pecially among the young. If there is to be a efactors and arts support groups. It can as- tional Endowment for the Arts and believe further flowering of our artistic culture in sist and strengthen organizations that have that there is a federal role in support of the the coming years, it must begin by making valuable ideas but need assistance in initi- arts? the best achievements of our rich heritage a ating them. It can connect outstanding Yes. The Arts Endowment’s mandate is to reality in the lives of our young people. young artists to this effort, both as teachers provide national recognition and support to 6. You have had an extremely accom- and practitioners. Finally, through its gen- significant projects of artistic excellence, plished career in music and music education. eral grants programs, the Endowment can thus preserving and enhancing our nation’s Do you have any thoughts about ways that increase access to outstanding performances diverse cultural heritage. This is a noble and the agency can develop or initiate programs and exhibitions so that at every stage of a essential national goal and I embrace it com- for young children and the arts? young person’s development, the arts at pletely. I believe there are important aspects To ensure the artistic future of our coun- their best are regularly experienced. of this task that can best be performed at try, I believe, today’s children and those of 8. How do you feel that the federal role of the federal level. If I have the opportunity to generations to come must have the oppor- the Arts Endowment differs from the role of serve as chairman, I will work to advance tunity to learn by actual experience, the the state entities and local agencies? Do you the Endowment’s mandate in every conceiv- techniques of music-making, the skills of feel that these roles complement each other able way. drawing, painting and sculpting, dance well? Are there any changes that you would 2. Are there any circumstances under movement, poetry and other forms of writ- suggest for either the federal role, or the which you would support the elimination of ing, and the art of acting and play-making. way the Endowment supports state and local the agency? Such experiences together with regular ac- initiatives? No. cess to the finest art can stimulate a child’s If the opportunity to serve as chairman of 3. Due to budget cuts and the impact of in- imagination, engage the intellect, create dis- the Arts Endowment comes to me, I will flation, the NEA’s spending power has been cipline, produce physical skill and enhance make it a high priority to become very fa- dramatically reduced. The decline in funding curiosity and joy. Few may become profes- miliar with our state and local arts agencies,

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00276 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S14049 their leaders and the important work they The PRESIDENT pro tempore. With- ported after that 20-day period, the do. I will explore with them ways in which out objection, it is so ordered. nomination be automatically dis- their partnership with the Endowment can The nominations were considered and charged and placed on the Executive be strengthened and broadened. They have confirmed, as follows: Calendar. played a vital role in carrying out Challenge The PRESIDENT pro tempore. With- America and other important Endowment DEPARTMENT OF DEFENSE programs. Many of them have been ex- Claude M. Bolton, Jr., of Florida, to be an out objection, it is so ordered. tremely successful in promoting the arts in Assistant Secretary of the Army. f their own locales. I see them as already valu- DEPARTMENT OF THE INTERIOR NOMINATIONS TO REMAIN IN STA- able allies for the Endowment, and I would Kathleen Burton Clarke, of Utah, to be Di- TUS QUO NOTWITHSTANDING hope that these alliances can be made even rector of the Bureau of Land Management. more productive for our citizens everywhere. THE ADJOURNMENT OF THE 9. Do you believe that the Arts Endowment THE JUDICIARY SENATE should actively pursue private funds to sup- C. Ashley Royal, of Georgia, to be United Mr. REID. Mr. President, I ask unan- States District Judge for the Middle District plement its federal appropriation? imous consent that all nominations re- I understand that legislation gives the En- of Georgia. dowment authority to accept private gifts Harry E. Cummins, III, of Arkansas, to be ceived by the Senate during the 107th and donations. I also understand that there United States Attorney for the Eastern Dis- Congress, first session, remain in sta- is concern in the arts community that major trict of Arkansas for the term of four years. tus quo notwithstanding the adjourn- fundraising activities by the Arts Endow- Christopher James Christie, of New Jersey, ment of the Senate and the provisions ment could compete with, and therefore, to be United States Attorney for the District of rule XXXI, paragraph 6, of the conceivably diminish the ability of arts or- of New Jersey for the term of four years. Standing Rules of the Senate, with the ganizations to raise the funding necessary NATIONAL AERONAUTICS AND SPACE following exceptions: PN850, Otto for their survival. In the current economic ADMINISTRATION Reich, to be Assistant Secretary of climate, and following September 11, the Sean O’Keefe, of New York, to be Adminis- State; PN983–4, Colonel David R. issue of financial support for arts groups ev- trator of the National Aeronautics and Space erywhere is especially serious. If I am con- Leffarge, to be Brigadier General. Administration, vice Daniel S. Goldin, re- The PRESIDENT pro tempore. With- firmed, I would approach this matter care- signed. fully and in a collegial spirit. out objection, it is so ordered. ARMY 10. Will you continue the agency’s efforts f to build partnerships and funding coalitions The following named officers for appoint- with other federal agencies? ment in the Reserve of the Army to the LEGISLATIVE SESSION I support efforts to form coalitions and grades indicated under title 10, U.S.C., sec- The PRESIDENT pro tempore. The partnerships with other federal agencies tion 12203: Senate will return to legislative ses- whenever these can enhance access for Amer- To be major general sion. icans nationwide to projects of artistic qual- Brigadier General Donna F. Barbisch, 0000 f ity. Accordingly, I would examine the cur- Brigadier General Jamie S. Barkin, 0000 rent inter-agency agreements that the En- Brigadier General Robert W. Chesnut, 0000 AUTHORIZATION TO MAKE AP- dowment has entered into over the years to Brigadier General Richard S. Colt, 0000 POINTMENTS NOTWITHSTANDING see how these and other such cooperative ef- Brigadier General Lowell C. Detamore, 0000 THE SINE DIE ADJOURNMENT forts can help to preserve our national artis- Brigadier General Douglas O. Dollar, 0000 tic heritage and increase the value of that Brigadier General Kenneth D. Herbst, 0000 Mr. REID. Mr. President, I ask unan- heritage to our citizens, especially those who Brigadier General Karol A. Kennedy, 0000 imous consent that notwithstanding may be otherwise underserved. Brigadier General Rodney M. Kobayashi, 0000 the sine die adjournment of the Senate, Mr. REID. Mr. President, I ask unan- Brigadier General Robert B. Ostenberg, 0000 the President of the Senate, the Senate imous consent that the Agriculture Brigadier General Michael W. Symanski, 0000 President pro tempore, and the major- Committee be discharged from the con- Brigadier General William B. Watson, Jr., ity and minority leaders be authorized sideration of the nomination of James 0000 to make appointments to commissions, Newsome, to be chairman of the Com- To be brigadier general committees, boards, and conferences, modity Futures Trading Commission Colonel James E. Archer, 0000 or interparliamentary conferences au- and his nomination to be a commis- Colonel Thomas M. Bryson, 0000 thorized by law by concurrent action of sioner on the Commission; that the Colonel Peter S. Cooke, 0000 the two Houses, or by order of the Sen- Colonel Donna L. Dacier, 0000 nominations be confirmed, the motion Colonel Charles H. Davidson, IV, 0000 ate. to reconsider be laid on the table, and Colonel Michael R. Eyre, 0000 The PRESIDENT pro tempore. With- that any statements thereon be printed Colonel Donald L. Jacka, Jr., 0000 out objection, it is so ordered. at the appropriate place in the RECORD. Colonel William H. Johnson, 0000 f The PRESIDENT pro tempore. With- Colonel Robert J. Kasulke, 0000 SENATE RESOLUTIONS 195, 196, 197, out objection, it is so ordered. Colonel Jack L. Killen, Jr., 0000 AND 198, EN BLOC The nominations were considered and Colonel John C. Levasseur, 0000 confirmed, as follows: Colonel James A. Mobley, 0000 Mr. REID. Mr. President, I ask unan- Colonel Mark A. Montjar, 0000 DEPARTMENT OF AGRICULTURE imous consent that it be in order for Colonel Carrie L. Nero, 0000 the Senate to proceed en bloc to the James E. Newsome, of Mississippi, to be Colonel Arthur C. Nuttall, 0000 consideration of Senate Resolutions Chairman of the Commodity Futures Trad- Colonel Paulette M. Risher, 0000 ing Commission. Colonel Kenneth B. Ross, 0000 195, 196, 197, and 198, all submitted ear- James E. Newsome, of Mississippi, to be a Colonel William Terpeluk, 0000 lier today, that the resolutions be Commissioner of the Commodity Futures Colonel Michael H. Walter, 0000 agreed to en bloc, and the motions to Trading Commission for the term expiring Colonel Roger L. Ward, 0000 reconsider be laid upon the table, with June 19, 2006. (Reappointment) Colonel David Zalis, 0000 no intervening action. f Colonel Bruce E. Zukauskas, 0000 The PRESIDENT pro tempore. With- EXECUTIVE CALENDAR f out objection, it is so ordered. The resolutions (S. Res. 195, S. Res. Mr. REID. Mr. President, I ask unan- REFERRAL OF THE NOMINATION OF JOSEPH SCHMITZ 196, S. Res. 197, and S. Res. 198) were imous consent that the Senate proceed agreed to en bloc. to the consideration of Calendar Nos. Mr. REID. Mr. President, I ask unan- (The text of the resolutions are print- 607, 624, 647, 650, 651, 667, and 668. imous consent that the nomination of ed in today’s RECORD under ‘‘State- The PRESIDENT pro tempore. With- Joseph Schmitz to be Inspector Gen- ments on Submitted Resolutions.’’) out objection, it is so ordered. eral, Department of Defense, which was f Mr. REID. Mr. President, I ask that ordered reported by the Committee on those nominations be confirmed, the Armed Services earlier today, be re- MEASURE INDEFINITELY motions to reconsider be laid upon the ferred to the Committee on Govern- POSTPONED—S. 1178 table, that any statements be printed mental Affairs for not to exceed 20 cal- Mr. REID. Mr. President, I ask unan- in the RECORD, and the President be endar days, beginning January 23, 2002, imous consent that Calendar No. 88, S. immediately notified. and that if the nomination is not re- 1178, be indefinitely postponed.

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00277 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S14050 CONGRESSIONAL RECORD — SENATE December 20, 2001 The PRESIDENT pro tempore. With- parallel separated millions of Koreans from randum of Understanding entered into be- out objection, it is so ordered. their families, tearing at the heart of every tween the States of Maine, New Hampshire, Mr. REID. Mr. President, for the in- mother, father, daughter, and son; Vermont, Massachusetts, Rhode Island, and formation of the Senate, this item is Whereas on June 13 and 14, 2000, in the first Connecticut and the Provinces of Quebec, summit conference ever held between leaders New Brunswick, Prince Edward Island, Nova an appropriations bill. The conference of North and South Korea, South Korean Scotia and Newfoundland. The compact is report on the House numbered bill is President Kim Dae Jung met with North Ko- substantially as follows: now public law. rean leader Kim Jong Il in Pyongyang, North ‘‘Article I—International Emergency Manage- Korea’s capital; f ment Assistance Memorandum of Under- Whereas in a historic joint declaration, standing Purpose and Authorities BASIC PILOT EXTENSION ACT OF South Korean President Kim Dae Jung and 2001 North Korean leader Kim Jong Il made an ‘‘The International Emergency Manage- ment Assistance Memorandum of Under- Mr. REID. Mr. President, I ask unan- important promise to promote economic co- operation and hold reunions of South Korean standing, hereinafter referred to as the ‘com- imous consent that the Senate proceed and North Korean citizens; pact,’ is made and entered into by and to H.R. 3030. Whereas such reunions have been held in among such of the jurisdictions as shall The PRESIDENT pro tempore. The North and South Korea since the signing of enact or adopt this compact, hereinafter re- clerk will report the title of the bill. the joint declaration, reuniting family mem- ferred to as ‘party jurisdictions.’ For the The legislative clerk read as follows: bers who had not seen or heard from each purposes of this agreement, the term ‘juris- dictions’ may include any or all of the States A bill (H.R. 3030) to extend the basic pilot other for more than 50 years; of Maine, New Hampshire, Vermont, Massa- program for employment eligibility Whereas 500,000 people of the United States chusetts, Rhode Island, and Connecticut and verification, and for other purposes. of Korean ancestry bear the pain of being separated from their families in North the Provinces of Quebec, New Brunswick, There being no objection, the Senate Korea; Prince Edward Island, Nova Scotia and New- proceeded to consider the bill. Whereas the United States values peace in foundland, and such other states and prov- Mr. REID. Mr. President, I ask unan- the global community and has long recog- inces as may hereafter become a party to imous consent that the bill be read a nized the significance of uniting families this compact. third time, passed, the motion to re- torn apart by the tragedy of war; and ‘‘The purpose of this compact is to provide consider be laid upon the table, and Whereas a petition drive is taking place for the possibility of mutual assistance any statements relating to the bill be throughout the United States, urging the among the jurisdictions entering into this United States Government to assist in the compact in managing any emergency or dis- printed in the RECORD. reunification efforts: Now, therefore, be it aster when the affected jurisdiction or juris- The PRESIDENT pro tempore. With- Resolved by the Senate (the House of Rep- dictions ask for assistance, whether arising out objection, it is so ordered. resentatives concurring), That it is the sense from natural disaster, technological hazard, The bill (H.R. 3030) was read the third of Congress that— manmade disaster or civil emergency aspects time and passed. (1) Congress and the President should sup- of resources shortages. port efforts to reunite people of the United f ‘‘This compact also provides for the proc- States of Korean ancestry with their fami- ess of planning mechanisms among the agen- EXPRESSING THE SENSE OF CON- lies in North Korea; and cies responsible and for mutual cooperation, GRESS REGARDING EFFORTS OF (2) such efforts should be made in a timely including, if need be, emergency-related ex- THE PEOPLE OF THE UNITED manner, as 50 years have passed since the ercises, testing, or other training activities separation of these families. STATES OF KOREAN ANCESTRY using equipment and personnel simulating TO REUNITE WITH FAMILY MEM- f performance of any aspect of the giving and receiving of aid by party jurisdictions or sub- BERS IN NORTH KOREA GRANTING CONSENT OF CONGRESS divisions of party jurisdictions during emer- Mr. REID. Mr. President, I ask unan- TO THE INTERNATIONAL EMER- gencies, with such actions occurring outside imous consent that the Senate proceed GENCY MANAGEMENT ASSIST- actual declared emergency periods. Mutual to the immediate consideration of Cal- ANCE MEMORANDUM OF UNDER- assistance in this compact may include the endar No. 280, S. Con. Res. 90. STANDING use of emergency forces by mutual agree- ment among party jurisdictions. The PRESIDENT pro tempore. The Mr. REID. Mr. President, I ask unan- clerk will state the title of the concur- imous consent that the Senate proceed ‘‘Article II—General Implementation rent resolution. to the immediate consideration of Cal- ‘‘Each party jurisdiction entering into this The legislative clerk read as follows: endar No. 211, S.J. Res. 12. compact recognizes that many emergencies A concurrent resolution (S. Con. Res. 90) The PRESIDENT pro tempore. The may exceed the capabilities of a party juris- expressing the sense of Congress regarding clerk will state the title of the joint diction and that intergovernmental coopera- the efforts of people of the United States of resolution. tion is essential in such circumstances. Each jurisdiction further recognizes that there Korean ancestry to reunite with their family The legislative clerk read as follows: members in North Korea. will be emergencies that may require imme- A joint resolution (S.J. Res. 12) granting diate access and present procedures to apply There being no objection, the Senate the consent of Congress to the International outside resources to make a prompt and ef- proceeded to consider the concurrent Emergency Management Assistance Memo- fective response to such an emergency be- resolution. randum of Understanding. cause few, if any, individual jurisdictions Mr. REID. Mr. President, I ask unan- There being no objection, the Senate have all the resources they need in all types imous consent that the concurrent res- proceeded to consider the joint resolu- of emergencies or the capability of deliv- olution be agreed to, the preamble be tion. ering resources to areas where emergencies exist. agreed to, the motion to reconsider be Mr. REID. Mr. President, I ask unan- laid upon the table, and any state- imous consent that the joint resolution ‘‘The prompt, full, and effective utilization be read a third time, passed, the mo- of resources of the participating jurisdic- ments relating to the concurrent reso- tions, including any resources on hand or lution be printed in the RECORD. tion to reconsider be laid upon the available from any other source that are es- The PRESIDENT pro tempore. With- table, and any statement relating to sential to the safety, care, and welfare of the out objection, it is so ordered. the joint resolution be printed in the people in the event of any emergency or dis- The concurrent resolution (S. Con. RECORD. aster, shall be the underlying principle on Res. 90) was agreed to. The PRESIDENT pro tempore. With- which all articles of this compact are under- The preamble was agreed to. out objection, it is so ordered. stood. The concurrent resolution, with its The joint resolution (S.J. Res. 12) ‘‘On behalf of the party jurisdictions par- preamble, reads as follows: was read the third time and passed, as ticipating in the compact, the legally des- follows: ignated official who is assigned responsi- S. CON. RES. 90 bility for emergency management is respon- Whereas on June 25, 1950, North Korea in- S.J. RES. 12 sible for formulation of the appropriate vaded South Korea, thereby initiating the Resolved by the Senate and House of Rep- inter-jurisdictional mutual aid plans and Korean War, leading to the loss of countless resentatives of the United States of America in procedures necessary to implement this com- lives, and further polarizing a world engulfed Congress assembled, pact, and for recommendations to the juris- by the Cold War; SECTION 1. CONGRESSIONAL CONSENT. diction concerned with respect to the amend- Whereas in the aftermath of the Korean Congress consents to the International ment of any statutes, regulations, or ordi- War, the division of the Koreas at the 38th Emergency Management Assistance Memo- nances required for that purpose.

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00278 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S14051 ‘‘Article III—Party Jurisdiction Responsibil- ‘‘Article IV—Limitation ‘‘Article VIII—Workers’ Compensation and ities ‘‘Any party jurisdiction requested to Death Benefits ‘‘Each party jurisdiction shall provide, in ‘‘(a) FORMULATE PLANS AND PROGRAMS.—It render mutual aid or conduct exercises and is the responsibility of each party jurisdic- training for mutual aid shall undertake to accordance with its own laws, for the pay- tion to formulate procedural plans and pro- respond as soon as possible, except that it is ment of workers’ compensation and death grams for inter-jurisdictional cooperation in understood that the jurisdiction rendering benefits to injured members of the emer- the performance of the responsibilities listed aid may withhold or recall resources to the gency forces of that jurisdiction and to rep- in this section. In formulating and imple- extent necessary to provide reasonable pro- resentatives of deceased members of those menting such plans and programs the party tection for that jurisdiction. Each party ju- forces if the members sustain injuries or are jurisdictions, to the extent practical, shall— risdiction shall afford to the personnel of the killed while rendering aid pursuant to this ‘‘(1) review individual jurisdiction hazards emergency forces of any party jurisdiction, compact, in the same manner and on the analyses that are available and, to the ex- while operating within its jurisdictional lim- same terms as if the injury or death were tent reasonably possible, determine all those its under the terms and conditions of this sustained within their own jurisdiction. potential emergencies the party jurisdic- compact and under the operational control ‘‘Article IX—Reimbursement tions might jointly suffer, whether due to of an officer of the requesting party, the ‘‘Any party jurisdiction rendering aid in natural disaster, technological hazard, man- same powers, duties, rights, privileges, and another jurisdiction pursuant to this com- made disaster or emergency aspects of re- immunities as are afforded similar or like pact shall, if requested, be reimbursed by the source shortages; forces of the jurisdiction in which they are party jurisdiction receiving such aid for any ‘‘(2) initiate a process to review party ju- performing emergency services. Emergency loss or damage to, or expense incurred in, risdictions’ individual emergency plans and forces continue under the command and con- the operation of any equipment and the pro- develop a plan that will determine the mech- trol of their regular leaders, but the organi- vision of any service in answering a request anism for the inter-jurisdictional coopera- zational units come under the operational for aid and for the costs incurred in connec- tion; control of the emergency services authori- tion with those requests. An aiding party ju- ‘‘(3) develop inter-jurisdictional procedures ties of the jurisdiction receiving assistance. risdiction may assume in whole or in part to fill any identified gaps and to resolve any These conditions may be activated, as need- any such loss, damage, expense, or other cost identified inconsistencies or overlaps in ex- ed, by the jurisdiction that is to receive as- or may loan such equipment or donate such isting or developed plans; sistance or upon commencement of exercises services to the receiving party jurisdiction ‘‘(4) assist in warning communities adja- or training for mutual aid and continue as without charge or cost. Any 2 or more party cent to or crossing jurisdictional boundaries; long as the exercises or training for mutual jurisdictions may enter into supplementary ‘‘(5) protect and ensure delivery of services, aid are in progress, the emergency or dis- agreements establishing a different alloca- medicines, water, food, energy and fuel, aster remains in effect or loaned resources tion of costs among those jurisdictions. Ex- search and rescue, and critical lifeline equip- remain in the receiving jurisdiction or juris- penses under article VIII are not reimburs- ment, services and resources, both human dictions, whichever is longer. The receiving able under this section. jurisdiction is responsible for informing the and material to the extent authorized by ‘‘Article X—Evacuation law; assisting jurisdictions of the specific mo- ‘‘Each party jurisdiction shall initiate a ‘‘(6) inventory and agree upon procedures ment when services will no longer be re- process to prepare and maintain plans to fa- for the inter-jurisdictional loan and delivery quired. cilitate the movement of and reception of of human and material resources, together ‘‘Article V—Licenses and Permits evacuees into its territory or across its terri- with procedures for reimbursement or for- ‘‘Whenever a person holds a license, certifi- tory, according to its capabilities and pow- giveness; and cate, or other permit issued by any jurisdic- ers. The party jurisdiction from which the ‘‘(7) provide, to the extent authorized by tion party to the compact evidencing the evacuees came shall assume the ultimate re- law, for temporary suspension of any stat- meeting of qualifications for professional, sponsibility for the support of the evacuees, utes or ordinances, over which the province mechanical, or other skills, and when such and after the termination of the emergency or state has jurisdiction, that impede the im- assistance is requested by the receiving or disaster, for the repatriation of such evac- plementation of the responsibilities de- party jurisdiction, such person is deemed to uees. scribed in this subsection. be licensed, certified, or permitted by the ju- ‘‘Article XI—Implementation ‘‘(b) REQUEST ASSISTANCE.—The authorized risdiction requesting assistance to render aid ‘‘(a) This compact is effective upon its exe- representative of a party jurisdiction may involving such skill to meet an emergency or cution or adoption by any 2 jurisdictions, request assistance of another party jurisdic- disaster, subject to such limitations and con- and is effective as to any other jurisdiction tion by contacting the authorized represent- ditions as the requesting jurisdiction pre- upon its execution or adoption thereby: sub- ative of that jurisdiction. These provisions scribes by Executive order or otherwise. ject to approval or authorization by the only apply to requests for assistance made ‘‘Article VI—Liability United States Congress, if required, and sub- by and to authorized representatives. Re- ject to enactment of provincial or State leg- quests may be verbal or in writing. If verbal, ‘‘Any person or entity of a party jurisdic- islation that may be required for the effec- the request must be confirmed in writing tion rendering aid in another jurisdiction tiveness of the Memorandum of Under- within 15 days of the verbal request. Re- pursuant to this compact are considered standing. quests must provide the following informa- agents of the requesting jurisdiction for tort ‘‘(b) Any party jurisdiction may withdraw tion: liability and immunity purposes. Any person from this compact, but the withdrawal does ‘‘(1) A description of the emergency service or entity rendering aid in another jurisdic- not take effect until 30 days after the gov- function for which assistance is needed and tion pursuant to this compact are not liable ernor or premier of the withdrawing jurisdic- of the mission or missions, including but not on account of any act or omission in good tion has given notice in writing of such with- limited to fire services, emergency medical, faith on the part of such forces while so en- drawal to the governors or premiers of all transportation, communications, public gaged or on account of the maintenance or other party jurisdictions. The action does works and engineering, building inspection, use of any equipment or supplies in connec- not relieve the withdrawing jurisdiction planning and information assistance, mass tion therewith. Good faith in this article from obligations assumed under this com- care, resource support, health and medical does not include willful misconduct, gross pact prior to the effective date of with- services, and search and rescue. negligence, or recklessness. drawal. ‘‘(2) The amount and type of personnel, ‘‘Article VII—Supplementary Agreements ‘‘(c) Duly authenticated copies of this com- equipment, materials, and supplies needed ‘‘Because it is probable that the pattern pact in the French and English languages and a reasonable estimate of the length of and detail of the machinery for mutual aid and of such supplementary agreements as time they will be needed. among 2 or more jurisdictions may differ may be entered into shall, at the time of ‘‘(3) The specific place and time for staging from that among the jurisdictions that are their approval, be deposited with each of the of the assisting party’s response and a point party to this compact, this compact contains party jurisdictions. of contact at the location. elements of a broad base common to all ju- ‘‘Article XII—Severability ‘‘(c) CONSULTATION AMONG PARTY JURISDIC- risdictions, and nothing in this compact pre- ‘‘This compact is construed to effectuate TION OFFICIALS.—There shall be frequent con- cludes any jurisdiction from entering into sultation among the party jurisdiction offi- supplementary agreements with another ju- the purposes stated in Article I. If any provi- cials who have assigned emergency manage- risdiction or affects any other agreements sion of this compact is declared unconstitu- ment responsibilities, such officials collec- already in force among jurisdictions. Supple- tional or the applicability of the compact to tively known hereinafter as the Inter- mentary agreements may include, but are any person or circumstances is held invalid, national Emergency Management Group, and not limited to, provisions for evacuation and the validity of the remainder of this compact other appropriate representatives of the reception of injured and other persons and and the applicability of the compact to other party jurisdictions with free exchange of in- the exchange of medical, fire, public utility, persons and circumstances are not affected. formation, plans, and resource records relat- reconnaissance, welfare, transportation and ‘‘Article XIII—Consistency of Language ing to emergency capabilities to the extent communications personnel, equipment, and ‘‘The validity of the arrangements and authorized by law. supplies. agreements consented to in this compact

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00279 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S14052 CONGRESSIONAL RECORD — SENATE December 20, 2001 shall not be affected by any insubstantial thus preventing the communist governments REFERRING S. 846 TO CHIEF difference in form or language as may be from establishing a monopoly on the dis- JUDGE OF U.S. COURT OF FED- adopted by the various states and provinces. semination of information and providing an ERAL CLAIMS ‘‘Article XIV—Amendment alternative to the state-controlled, party dominated domestic media; Mr. REID. Mr. President, I ask unan- ‘‘This compact may be amended by agree- imous consent that the Judiciary Com- ment of the party jurisdictions.’’. Whereas the broadcast of uncensored news and information by Radio Free Europe and mittee be discharged from further con- SEC. 2. INCONSISTENCY OF LANGUAGE. Radio Liberty was a critical element con- sideration of S. Res. 83 and that the The validity of the arrangements con- tributing to the collapse of the totalitarian sented to by this Act shall not be affected by Senate proceed to its immediate con- any insubstantial difference in their form or communist governments of Central and sideration. language as adopted by the States and prov- Eastern Europe and the Soviet Union; The PRESIDENT pro tempore. With- inces. Whereas since the fall of the Iron Curtain, out objection, it is so ordered. RFE/RL has continued to inform and there- SEC. 3. RIGHT TO ALTER, AMEND, OR REPEAL. The clerk will report the resolution fore strengthen democratic forces in Central The right to alter, amend, or repeal this by title. Europe and the countries of the former So- Act is hereby expressly reserved. The legislative clerk read as follows: viet Union, and has contributed to the devel- A resolution (S. Res. 83) referring S. 846 en- f opment of a new generation of political and titled ‘‘A bill for the relief of J.L. Simmon RECOGNIZING RADIO FREE EU- economic leaders who have worked to Company, Inc., of Champaign, Illinois’’ to strengthen civil society, free market econo- ROPE/RADIO LIBERTY’S SUCCESS the chief judge of the Unites States Court of mies, and democratic government institu- Federal Claims for a report thereon. IN PROMOTING DEMOCRACY AND tions; There being no objection, the Senate ITS CONTINUING CONTRIBUTION Whereas United States Government fund- TO UNITED STATES NATIONAL ing established and continues to support proceeded to consider the resolution. INTERESTS international broadcasting, including RFE/ Mr. REID. I ask unanimous consent that the resolution be agreed to, the Mr. REID. Mr. President, I ask unan- RL, and this funding is among the most use- ful and effective in promoting and enhancing motion to reconsider be laid upon the imous consent that the Senate proceed table, and that any statements relating to the consideration of Calendar No. the Nation’s national security over the past half century; thereto be printed in the RECORD. 281, S. Con. Res. 92. Whereas RFE/RL has successfully The resolution (S. Res. 83) was agreed The PRESIDENT pro tempore. The downsized in response to legislative mandate to, as follows: clerk will report the title of the con- and adapted its programming to the chang- S. RES. 83 current resolution. ing international broadcast environment in Resolved, The legislative clerk read as follows: order to serve a broad spectrum of target au- SECTION 1. REFERRAL. A concurrent resolution (S. Con. Res. 92) diences—people living in fledgling democ- S. 846 entitled ‘‘A bill for the relief of J.L. recognizing Radio Free Europe/Radio Lib- racies where private media are still weak Simmons Company, Inc., of Champaign, Illi- erty’s success in promoting democracy and and do not enjoy full editorial independence, nois’’, now pending in the Senate, together its continuing contribution to United States transitional societies where democratic in- with all the accompanying papers, is referred national interests. stitutions and practices are poorly devel- to the chief judge of the United States Court There being no objection, the Senate oped, as well as countries which still have of Federal Claims. proceeded to consider the concurrent tightly controlled state media; SEC. 2. PROCEEDING AND REPORT. resolution. Whereas RFE/RL continues to provide ob- The chief judge shall— jective news, analysis, and discussion of do- Mr. REID. Mr. President, I ask unan- (1) proceed according to the provisions of mestic and regional issues crucial to demo- sections 1492 and 2509 of title 28, United imous consent that the concurrent res- cratic and free-market transformations in States Code, notwithstanding the bar of any olution be agreed to, the preamble be emerging democracies as well as strength- statute of limitations, laches, or bar of sov- agreed to, the motion to reconsider be ening civil society in these areas; ereign immunity; and laid upon the table, and any state- Whereas RFE/RL broadcasts seek to com- (2) report back to the Senate, at the ear- ments relating to the concurrent reso- bat ethnic, racial, and religious intolerance liest practicable date, providing— lution be printed in the RECORD. and promote mutual understanding among (A) such findings of fact and conclusions as The PRESIDENT pro tempore. With- peoples; are sufficient to inform Congress of the na- out objection, it is so ordered. Whereas RFE/RL provides a model for local ture, extent, and character of the claim for compensation referred to in such bill as a The concurrent resolution (S. Con. media, assists in training to encourage media professionalism and independence, and legal or equitable claim against the United Res. 92) was agreed to. States, or a gratuity; and The preamble was agreed to. develops partnerships with local media out- lets in emerging democracies; (B) the amount, if any, legally or equitably The concurrent resolution, with its Whereas RFE/RL is a unique broadcasting due from the United States to J.L. Simmons preamble, reads as follows: institution long regarded by its audience as Company, Inc., of Champaign, Illinois. S. CON. RES. 92 an alternative national media that provides f Whereas on May 1, 1951, Radio Free Europe both credibility and security for local jour- AMENDING THE INTERNAL inaugurated its full schedule of broadcast nalists who work as its stringers and editors REVENUE CODE OF 1986 services to the people of Eastern Europe and, in the broadcast region; and subsequently, Radio Liberty initiated its Whereas RFE/RL fosters closer relations Mr. REID. Mr. President, I ask unan- broadcast services to the peoples of the So- between the United States and other demo- imous consent that the Senate proceed viet Union on March 1, 1953, just before the cratic states, and the states of Central Eu- to the consideration of H.R. 3346. death of Stalin; rope and the former Soviet republics: Now The PRESIDENT pro tempore. The Whereas now fifty years later, Radio Free therefore be it clerk will report the bill by title. Europe/Radio Liberty (in this concurrent Resolved by the Senate (the House of Rep- The legislative clerk read as follows: resolution referred to as ‘‘RFE/RL’’) con- A bill (H.R. 3346) to amend the Internal tinues to promote democracy and human resentatives concurring), That the Congress— Revenue Code of 1986 to simplify the report- rights and serve United States national in- (1) congratulates the editors, journalists, ing requirements relating to higher edu- terests by fulfilling its mission ‘‘to promote and managers of Radio Free Europe/Radio cation, tuition and related expenses. democratic values and institutions by dis- Liberty on a half century of effort in pro- seminating factual information and ideas’’; moting democratic values, and particularly There being no objection, the Senate Whereas Radio Free Europe and Radio Lib- their contribution to promoting freedom of proceeded to consider the bill. erty were established in the darkest days of the press and freedom of expression in areas Mr. REID. I ask unanimous consent the cold war as a substitute for the free of the world where such liberties have been that the bill be read a third time, media which no longer existed in the com- denied or are not yet fully institutionalized; passed, the motion to reconsider be and munist-dominated countries of Central and laid upon the table, and any state- (2) recognizes the major contribution of Eastern Europe and the Soviet Union; ments relating thereto be printed in Whereas Radio Free Europe and Radio Lib- Radio Free Europe/Radio Liberty to the erty developed a unique form of inter- growth of democracy throughout the world the RECORD. national broadcasting known as surrogate and its continuing efforts to advance the The PRESIDENT pro tempore. With- broadcasting by airing local news about the vital national interests of the United States out objection, it is so ordered. countries to which they broadcast as well as in building a world community that is more The bill (H.R. 3346) was read the third providing regional and international news, peaceful, democratic, free, and stable. time and passed.

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00280 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S14053 DESIGNATING RICHARD J. from the Committee on Foreign Rela- øWhereas Daw Aung San Suu Kyi has re- GUADAGNO HEADQUARTERS AND tions, with an amendment and an cently begun talks with the SPDC which are VISITORS CENTER amendment to the preamble. welcomed by the international community, although the slow pace of the talks reflects Mr. REID. Mr. President, I ask unan- (The parts of the concurrent resolu- tion intended to be stricken are shown on the SPDC’s sincerity to move toward na- imous consent that the Senate proceed tional reconciliation; in boldface brackets and the parts of to the consideration of H.R. 3334 just øWhereas the SPDC has recently allowed the concurrent resolution intended to received from the House and which is the National League for Democracy to open be inserted are shown in italic.) now at the desk. some political offices, and has released some The PRESIDENT pro tempore. The H. CON. RES. 211 political prisoners, although over 1,800 such øWhereas since 1962, the people of Burma prisoners are believed to remain imprisoned; clerk will report the bill by title. øWhereas with the exception of these posi- The legislative clerk read as follows: have lived under a repressive military re- gime; tive developments the SPDC has made little A bill (H.R. 3334) to designate the Richard øWhereas in 1988, the people of Burma rose progress in improving human rights condi- J. Guadagno Headquarters and Visitors Cen- up in massive prodemocracy demonstrations; tions and restoring democracy to the coun- ter at Humboldt Bay National Wildlife Ref- øWhereas in response to this call for try; uge, California. change, the Burmese military brutally sup- øWhereas the SPDC has continued to re- There being no objection, the Senate pressed these demonstrations; strict the political power of Daw Aung San proceeded to consider the bill. øWhereas opposition leader Daw Aung San Suu Kyi and the National League for Democ- Suu Kyi was placed under house arrest after racy; Mr. REID. I ask unanimous consent øWhereas Daw Aung San Suu Kyi’s strug- that the bill be read a third time, these demonstrations; øWhereas in the 1990 Burmese elections, gle to assert the rights of her people has passed, the motion to reconsider be Daw Aung San Suu Kyi led the National spread beyond politics and into popular cul- laid upon the table, and any state- League for Democracy and affiliated parties ture, as evidenced by others championing her ments relating thereto be printed in to a landslide victory, winning 80 percent of cause, most notably the rock group U2 in the RECORD. the parliamentary seats; their song ‘‘Walk On’’, which is banned in The PRESIDENT pro tempore. With- øWhereas the ruling military regime re- Burma; and out objection, it is so ordered. jected this election and proceeded to arrest øWhereas, in the face of oppression, Daw The bill (H.R. 3334) was read the third hundreds of members of the National League Aung San Suu Kyi has remained an out- spoken champion of democracy and freedom: time and passed. for Democracy; øWhereas Daw Aung San Suu Kyi’s free- Now, therefore, be it¿ f dom of speech was restricted by the military Whereas, since 1962, the people of Burma have DESIGNATING THE TODD BEAMER regime; lived under a repressive military regime; Whereas, in 1988, the people of Burma rose up POST OFFICE BUILDING øWhereas in recognition of her efforts to bring democracy to Burma, Daw Aung San in massive prodemocracy demonstrations; Mr. REID. Mr. President, I ask unan- Suu Kyi was awarded the Nobel Peace Prize Whereas, in response to this call for change, imous consent that the Governmental on October 14, 1991; the Burmese military brutally suppressed these Affairs Committee be discharged from øWhereas Daw Aung San Suu Kyi remained demonstrations; further consideration of H.R. 3248 and under unlawful house arrest until 1995; Whereas opposition leader Daw Aung San that the Senate proceed to its imme- øWhereas even after her release, the Bur- Suu Kyi was placed under house arrest after these demonstrations; diate consideration. mese military regime, known as the State Peace and Development Council (SPDC), has Whereas, in the 1990 Burmese elections, Daw The PRESIDENT pro tempore. With- continued to ignore the basic human rights Aung San Suu Kyi led the National League for out objection, it is so ordered. of 48,000,000 Burmese citizens and has bru- Democracy and affiliated parties to a landslide The clerk will report the bill by title. tally suppressed any opposition to its au- victory, winning 80 percent of the parliamentary The legislative clerk read as follows: thority; seats; A bill (H.R. 3248) to designate the facility øWhereas according to the State Depart- Whereas the ruling military regime rejected of the United States Postal Service located ment, the SPDC has made no significant this election and proceeded to arrest hundreds at 65 North Main Street in Cranbury, New progress toward stopping the practice of of members of the National League for Democ- Jersey, as the Todd Beamer Post Office human trafficking, whereby thousands of racy; Building. people have been sent to Thailand for the Whereas Daw Aung San Suu Kyi’s freedom of purpose of factory and household work and speech, assembly, association, and movement There being no objection, the Senate for sexual exploitation; was restricted by the military regime; proceeded to consider the bill. øWhereas the SPDC has forced civilians to Whereas, in recognition of her efforts to bring Mr. REID. I ask unanimous consent work in industrial, military, and infrastruc- democracy to Burma, Daw Aung San Suu Kyi that the bill be read three times and ture construction operations throughout was awarded the Nobel Peace Prize on December passed, the motion to reconsider be Burma, and on a large-scale basis has tar- 10, 1991; laid upon the table, and any state- geted ethnic and religious minorities for this Whereas Daw Aung San Suu Kyi remained ments relating to the bill be printed in work; under unlawful house arrest until 1995; øWhereas a Department of Labor report in Whereas, even after the release of Daw Aung the RECORD. San Suu Kyi, the Burmese military regime, The bill (H.R. 3248) was read the third 2000 described the human rights abuses of forced laborers, including beating, torture, known as the State Peace and Development time and passed. starvation, and summary executions; Council (in this concurrent resolution referred f øWhereas the worldwide scourge of heroin to as the ‘‘SPDC’’), has continued to ignore the basic human rights of 48,000,000 Burmese citi- COMMENDING DAW AUNG SAN SUU and methamphetamines is significantly ag- gravated by large-scale cultivation and pro- zens and has brutally suppressed any opposition KYI ON THE TENTH ANNIVER- duction of these drugs in Burma; to its authority; SARY OF HER RECEIVING THE øWhereas the Drug Enforcement Agency Whereas, according to the Department of NOBEL PEACE PRIZE has reported that Burma is the world’s sec- State, the SPDC has made no significant Mr. REID. Mr. President, I ask unan- ond largest producer of opium and opiate- progress toward stopping the practice of human imous consent that the Senate proceed based drugs; trafficking, whereby thousands of people have øWhereas officials in Thailand have esti- been sent to Thailand and other countries for to Calendar No. 294, H. Con. Res. 211. mated that as many as 800 million tablets of the purpose of factory and household work and The PRESIDENT pro tempore. The methamphetamine will be smuggled into for sexual exploitation; clerk will report the concurrent resolu- their country this year, contributing to the Whereas the SPDC has forced civilians to tion by title. growing methamphetamine problem in Thai- work in industrial, military, and infrastructure The legislative clerk read as follows: land; construction operations throughout Burma, and ø A concurrent resolution (H. Con. Res. 211) Whereas there are as many as a million on a large-scale basis has targeted ethnic and commending Daw Aung San Suu Kyi on the internally displaced persons in Burma; religious minorities for this work; ø tenth anniversary of her receiving the Nobel Whereas the SPDC has severely restricted Whereas a Department of Labor report in 2000 Peace Prize and expressing the sense of the Daw Aung San Suu Kyi’s political activities; described the human rights abuses of forced la- ø Congress with respect to the Government of Whereas in September 2000, Daw Aung borers, including beating, torture, starvation, Burma. San Suu Kyi was placed under house arrest and summary executions; when she attempted to visit a National Whereas the Drug Enforcement Administra- There being no objection, the Senate League for Democracy party office on the tion has reported that Burma is the world’s sec- proceeded to consider the concurrent outskirts of Rangoon, and again when she at- ond largest producer of opium and opiate-based resolution, which had been reported tempted to travel by train to Mandalay; drugs;

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00281 Fmt 0624 Sfmt 6333 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S14054 CONGRESSIONAL RECORD — SENATE December 20, 2001 Whereas officials in Thailand have estimated (b) SENSE OF CONGRESS.—It is the sense of The resolution (S. Res. 194), as that as many as 800 million tablets of meth- Congress that the President and the Secretary of amended, was agreed to. amphetamine will be smuggled into their coun- State should continue to encourage the SPDC The preamble, as amended, was try this year, contributing to the growing meth- to— agreed to. amphetamine problem in Thailand; (1) restore basic human rights to the Burmese Whereas there are as many as a million inter- people; [The resolution will appear in a fu- nally displaced persons in Burma; (2) eliminate the practice of human traf- ture edition of the RECORD.] Whereas the SPDC continues to severely re- ficking; f strict the political activities of Daw Aung San (3) address the manufacture of heroin and Suu Kyi and the National League for Democ- methamphetamines; AMERICAN WILDLIFE racy; (4) release all political prisoners; ENHANCEMENT ACT OF 2001 Whereas, in September 2000, Daw Aung San (5) remove all restrictions on the freedom of Mr. REID. I ask unanimous consent Suu Kyi was placed under house arrest when speech, assembly, association, and movement of she attempted to visit a National League for De- Daw Aung San Suu Kyi and members of the Na- that the Senate proceed to the imme- mocracy party office on the outskirts of Ran- tional League for Democracy; diate consideration of Calendar No. 283, goon, and again when she attempted to travel (6) recognize the results of the 1990 democratic S. 990. by train to Mandalay; elections; and The PRESIDENT pro tempore. The Whereas Daw Aung San Suu Kyi and the (7) take concrete steps to achieve national rec- clerk will report the bill by title. SPDC have recently begun talks under the aus- onciliation and the restoration of democracy The legislative clerk read as follows: pices of the United Nations Special Envoy to through genuine and substantive dialogue with A bill (S. 990) to amend the Pittman-Rob- Burma, Razali Ismail, which are welcomed by Daw Aung San Suu Kyi. the international community; ertson Wildlife Restoration Act to improve Whereas the SPDC has recently allowed the Mr. REID. I ask unanimous consent the provisions relating to wildlife conserva- National League for Democracy to open some that the committee amendment be tion and restoration programs, and for other political offices, and has released some political agreed to, the concurrent resolution, as purposes. prisoners, although over 1,800 such prisoners are amended, be agreed to, the amendment There being no objection, the Senate believed to remain imprisoned; to the preamble be agreed to, the pre- Whereas, with the exception of these positive proceeded to consider the bill which developments, the SPDC has made little progress amble, as amended, be agreed to, the had been reported from the Committee in improving human rights conditions and re- motion to reconsider be laid upon the on Environment and Public Works, storing democracy to Burma; table, and any statements relating with an amendment to strike all after Whereas the United Nations General Assembly thereto be printed in the RECORD. the enacting clause and insert in lieu has recently expressed its concern over the slow The PRESIDENT pro tempore. With- thereof the following: progress in the talks between Daw Aung San out objection, it is so ordered. SECTION 1. SHORT TITLE; TABLE OF CONTENTS. Suu Kyi and the SPDC; Whereas Daw Aung San Suu Kyi’s struggle to The committee amendment was (a) SHORT TITLE.—This Act may be cited as assert the rights of her people has spread be- agreed to. the ‘‘American Wildlife Enhancement Act of yond politics and into popular culture, as evi- The concurrent resolution (H. Con. 2001’’. denced by others championing her cause, most Res. 211), as amended, was agreed to. (b) TABLE OF CONTENTS.—The table of con- notably the rock group U2 in their song ‘‘Walk The amendment to the preamble was tents of this Act is as follows: On’’, which is banned in Burma; agreed to. Sec. 1. Short title; table of contents. Whereas Daw Aung San Suu Kyi is the recipi- The preamble, as amended, was TITLE I—PITTMAN-ROBERTSON WILDLIFE ent of the Presidential Medal of Freedom; and agreed to. CONSERVATION AND RESTORATION PRO- Whereas, in the face of oppression and at GRAMS IMPROVEMENT great personal sacrifice, Daw Aung San Suu Kyi f Sec. 101. Short title. has remained an outspoken champion of democ- CONGRATULATING THE PEOPLE racy and freedom: Now, therefore, be it Sec. 102. Definitions. Resolved by the Senate (the House of Rep- AND GOVERNMENT OF KAZAKH- Sec. 103. Wildlife Conservation and Restoration resentatives concurring), STAN ON THE ANNIVERSARY OF Account. øThat— INDEPENDENCE Sec. 104. Apportionment of amounts in the Ac- ø(1) the Congress commends and congratu- count. lates Daw Aung San Suu Kyi on the 10th an- Mr. REID. I ask unanimous consent Sec. 105. Wildlife conservation and restoration niversary of her receiving the Nobel Peace that the Foreign Relations Committee programs. Prize, and recognizes her remarkable con- be discharged from further consider- Sec. 106. Nonapplicability of Federal Advisory tributions and tireless work toward bringing ation of S. Res. 194, and that the Sen- Committee Act. peace and democracy to Burma; ate now proceed to its immediate con- Sec. 107. Technical amendments. ø(2) it is the sense of the Congress that the sideration. Sec. 108. Effective date. President and Secretary of State should con- The PRESIDENT pro tempore. With- TITLE II—ENDANGERED AND tinue to encourage the Government of out objection, it is so ordered. The THREATENED SPECIES RECOVERY Burma to restore basic human rights to the Sec. 201. Purpose. Burmese people, to eliminate the practice of clerk will report the resolution by title. Sec. 202. Endangered and threatened species re- human trafficking, to address the manufac- covery assistance. ture of heroin and methamphetamines, to The legislative clerk read as follows: TITLE III—NON-FEDERAL LAND continue the process of releasing political A resolution (S. Res. 194) congratulating CONSERVATION GRANT PROGRAM prisoners, to recognize the results of the 1990 the people and government of Kazakhstan on democratic elections, and to allow Daw Aung the tenth anniversary of the independence of Sec. 301. Non-Federal land conservation grant San Suu Kyi and the National League for De- the Republic of Kazakhstan. program. mocracy to enjoy unfettered freedom of There being no objection, the Senate TITLE IV—CONSERVATION AND RESTORA- speech and freedom of movement; and TION OF SHRUBLAND AND GRASSLAND ø(3) it is the sense of the Congress that proceeded to the immediate consider- ation of the resolution. Sec. 401. Conservation and restoration of Daw Aung San Suu Kyi should be invited to shrubland and grassland. address a joint meeting of the Congress at Mr. REID. I ask unanimous consent such time and under such circumstances as that the amendment to the resolution TITLE I—PITTMAN-ROBERTSON WILDLIFE will, in the judgment of Daw Aung San Suu and the preamble be agreed to, the res- CONSERVATION AND RESTORATION PROGRAMS IMPROVEMENT Kyi, advance rather than endanger her con- olution, as amended, be agreed to, the tinued ability to work within Burma for the preamble, as amended, be agreed to, SEC. 101. SHORT TITLE. ¿ rights of the Burmese people. the motion to reconsider be laid upon This title may be cited as the ‘‘Pittman-Rob- SECTION 1. COMMENDATION OF DAW AUNG SAN ertson Wildlife Conservation and Restoration SUU KYI AND SENSE OF CONGRESS the table, and any statements be print- Programs Improvement Act’’. ed in the RECORD. WITH RESPECT TO THE GOVERN- SEC. 102. DEFINITIONS. MENT OF BURMA. The PRESIDENT pro tempore. With- (a) IN GENERAL.—Section 2 of the Pittman- (a) COMMENDATION OF DAW AUNG SAN SUU out objection, it is so ordered. Robertson Wildlife Restoration Act (16 U.S.C. KYI.—Congress— The amendment (No. 2693) was agreed (1) commends and congratulates Daw Aung 669a) is amended to read as follows: San Suu Kyi on the 10th anniversary of her re- to, as follows: ‘‘SEC. 2. DEFINITIONS. ceiving the Nobel Peace Prize; and On page 3, delete lines 7–9, and insert the ‘‘In this Act: (2) recognizes her remarkable contributions following: ‘‘United States on matters of na- ‘‘(1) ACCOUNT.—The term ‘Account’ means the and tireless work toward bringing national rec- tional security, including the war against Wildlife Conservation and Restoration Account onciliation and democracy to Burma. terrorism.’’ established by section 3(a)(2).

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‘‘(2) CONSERVATION.— ‘‘(A) IN GENERAL.—The term ‘wildlife-restora- (3) by striking subsections (c) and (d). ‘‘(A) IN GENERAL.—The term ‘conservation’ tion project’ means a project consisting of the (b) CONFORMING AMENDMENTS.— means the use of a method or procedure nec- selection, restoration, rehabilitation, or improve- (1) Section 3(a)(1) of the Pittman-Robertson essary or desirable— ment of an area of land or water (including a Wildlife Restoration Act (16 U.S.C. 669b(a)(1)) is ‘‘(i) to sustain healthy populations of wildlife; property interest in land or water) that is amended in the first sentence— or adaptable as a feeding, resting, or breeding (A) by inserting ‘‘(other than the Account)’’ ‘‘(ii) to restore declining populations of wild- place for wildlife. after ‘‘wildlife restoration fund’’; and life. ‘‘(B) INCLUSIONS.—The term ‘wildlife-restora- (B) by inserting before the period at the end ‘‘(B) INCLUSIONS.—The term ‘conservation’ in- tion project’ includes— the following: ‘‘(other than sections 4(d) and cludes any activity associated with scientific re- ‘‘(i) acquisition of an area of land or water 12)’’. sources management, such as— described in subparagraph (A) that is suitable or (2) Section 4 of the Pittman-Robertson Wildlife ‘‘(i) research; capable of being made suitable for feeding, rest- Restoration Act (16 U.S.C. 669c) is amended— ‘‘(ii) census; ing, or breeding by wildlife; (A) in subsection (a)— ‘‘(iii) monitoring of populations; ‘‘(ii) restoration or rehabilitation of an area of (i) in paragraph (1)(A)— ‘‘(iv) acquisition, improvement, and manage- land or water described in subparagraph (A) (I) by inserting ‘‘(other than the Account)’’ ment of habitat; (such as through management of habitat and after ‘‘the fund’’; and ‘‘(v) live trapping and transplantation; invasive species); (II) by inserting ‘‘(other than subsection (d) ‘‘(vi) wildlife damage management; ‘‘(iii) construction in an area described in sub- and sections 3(a)(2) and 12)’’ after ‘‘this Act’’; ‘‘(vii) periodic or total protection of a species paragraph (A) of such works as are necessary to and or population; and make the area available for feeding, resting, or (ii) in paragraph (2)(B), by inserting ‘‘from ‘‘(viii) the taking of individuals within a wild- breeding by wildlife; the fund (other than the Account)’’ before life stock or population if permitted by applica- ‘‘(iv) such research into any problem of wild- ‘‘under this Act’’; and ble Federal law, State law, or law of the District life management as is necessary for efficient ad- (B) in the first sentence of subsection (b), by of Columbia, a territory, or an Indian tribe for ministration of wildlife resources; and striking ‘‘said fund’’ and inserting ‘‘the fund the purpose of protecting wildlife in decline. ‘‘(v) such preliminary or incidental expenses (other than the Account)’’. ‘‘(3) FUND.—The term ‘fund’ means the Fed- as are incurred with respect to activities de- (3) Section 6 of the Pittman-Robertson Wildlife eral aid to wildlife restoration fund established scribed in this paragraph.’’. Restoration Act (16 U.S.C. 669e) is amended— (A) in subsection (a)— by section 3(a)(1). (b) CONFORMING AMENDMENTS.— (i) in the matter preceding paragraph (1), by ‘‘(4) INDIAN TRIBE.—The term ‘Indian tribe’ (1) The first section, section 3(a)(1), and sec- inserting ‘‘(other than sections 4(d) and 12)’’ has the meaning given the term in section 4 of tion 12 of the Pittman-Robertson Wildlife Res- after ‘‘this Act’’; the Indian Self-Determination and Education toration Act (16 U.S.C. 669, 669b(a)(1), 669i) are (ii) in the last sentence of paragraph (1), by Assistance Act (25 U.S.C. 450b). amended by striking ‘‘Secretary of Agriculture’’ striking ‘‘this Act from funds apportioned under ‘‘(5) SECRETARY.—The term ‘Secretary’ means each place it appears and inserting ‘‘Secretary’’. this Act’’ and inserting ‘‘this Act (other than the Secretary of the Interior. (2) The Pittman-Robertson Wildlife Restora- sections 4(d) and 12) from funds apportioned ‘‘(6) STATE FISH AND GAME DEPARTMENT.—The tion Act (16 U.S.C. 669 et seq.) is amended by from the fund (other than the Account) under term ‘State fish and game department’ means striking ‘‘Secretary of the Interior’’ each place it this Act’’; any department or division of a department of appears and inserting ‘‘Secretary’’. (iii) in paragraph (2)— another name, or commission, or 1 or more offi- (3) Section 3(a)(1) of the Pittman-Robertson (I) in the first sentence, by inserting ‘‘(other cials, of a State, the District of Columbia, a ter- Wildlife Restoration Act (16 U.S.C. 669b(a)(1)) is than sections 4(d) and 12)’’ after ‘‘this Act’’; ritory, or an Indian tribe empowered under the amended by striking ‘‘(hereinafter referred to as and laws of the State, the District of Columbia, the the ‘fund’)’’. (II) in the last sentence, by striking ‘‘said territory, or the Indian tribe, respectively, to ex- (4) Section 6(c) of the Pittman-Robertson fund as represents the share of the United ercise the functions ordinarily exercised by a Wildlife Restoration Act (16 U.S.C. 669e(c)) is States payable under this Act’’ and inserting State fish and game department or a State fish amended by striking ‘‘established by section 3 of ‘‘the fund (other than the Account) as rep- and wildlife department. this Act’’. ‘‘(7) TERRITORY.—The term ‘territory’ means resents the share of the United States payable (5) Section 11(b) of the Pittman-Robertson Puerto Rico, Guam, American Samoa, the Com- from the fund (other than the Account) under Wildlife Restoration Act (16 U.S.C. 669h–2(b)) is monwealth of the Northern Mariana Islands, this Act’’; and amended by striking ‘‘wildlife restoration and the Virgin Islands. (iv) in the last paragraph, by inserting ‘‘from projects’’ each place it appears and inserting ‘‘(8) WILDLIFE.— the fund (other than the Account)’’ before ‘‘wildlife-restoration projects’’. ‘‘(A) IN GENERAL.—Except as provided in sub- ‘‘under this Act’’ each place it appears; and paragraph (B), the term ‘wildlife’ means— SEC. 103. WILDLIFE CONSERVATION AND RES- (B) in subsection (b), by inserting ‘‘(other ‘‘(i) any species of wild, free-ranging fauna TORATION ACCOUNT. than sections 4(d) and 12)’’ after ‘‘this Act’’ (excluding fish); and (a) IN GENERAL.—Section 3 of the Pittman- each place it appears. ‘‘(ii) any species of fauna (excluding fish) in Robertson Wildlife Restoration Act (16 U.S.C. (4) Section 8A of the Pittman-Robertson Wild- a captive breeding program the object of which 669b) is amended— life Restoration Act (16 U.S.C. 669g–1) is amend- is to reintroduce individuals of a depleted native (1) by striking ‘‘SEC. 3. (a)(1) An’’ and insert- ed in the first sentence by inserting ‘‘from the species into the previously occupied range of the ing the following: fund (other than the Account)’’ before ‘‘under species. ‘‘SEC. 3. FEDERAL AID TO WILDLIFE RESTORA- this Act’’. ‘‘(B) WILDLIFE CONSERVATION AND RESTORA- TION FUND. (5) Section 9 of the Pittman-Robertson Wildlife TION PROGRAM.—For the purposes of each wild- ‘‘(a) IN GENERAL.— Restoration Act (16 U.S.C. 669h) is amended in life conservation and restoration program, the ‘‘(1) FEDERAL AID TO WILDLIFE RESTORATION subsections (a) and (b)(1) by striking ‘‘section term ‘wildlife’ includes fish and native plants. FUND.—An’’; 4(a)(1)’’ each place it appears and inserting ‘‘(9) WILDLIFE-ASSOCIATED RECREATION (2) in subsection (a), by striking paragraph (2) ‘‘subsections (a)(1) and (d)(1) of section 4’’. PROJECT.—The term ‘wildlife-associated recre- and inserting the following: (6) Section 10 of the Pittman-Robertson Wild- ation project’ means— ‘‘(2) WILDLIFE CONSERVATION AND RESTORA- life Restoration Act (16 U.S.C. 669h–1) is amend- ‘‘(A) a project intended to meet the demand TION ACCOUNT.— ed— for an outdoor activity associated with wildlife, ‘‘(A) ESTABLISHMENT.—There is established in (A) in subsection (a)(1)— such as hunting, fishing, and wildlife observa- the fund an account to be known as the ‘Wild- (i) by inserting ‘‘(other than the Account)’’ tion and photography; life Conservation and Restoration Account’. after ‘‘the fund’’; and ‘‘(B) a project such as construction or restora- ‘‘(B) FUNDING.— (ii) in subparagraph (B), by inserting ‘‘but ex- tion of a wildlife viewing area, observation ‘‘(i) IN GENERAL.—There are authorized to be cluding any use authorized solely by section 12’’ tower, blind, platform, land or water trail, appropriated to the Account for apportionment after ‘‘target ranges’’; and water access route, area for field trialing, or to States, the District of Columbia, territories, (B) in subsection (c)(2), by inserting before the trail head; and and Indian tribes in accordance with section period at the end the following: ‘‘(other than ‘‘(C) a project to provide access for a project 4(d)— sections 4(d) and 12)’’. described in subparagraph (A) or (B). ‘‘(I) $50,000,000 for fiscal year 2001; and (7) Section 11(a)(1) of the Pittman-Robertson ‘‘(10) WILDLIFE CONSERVATION AND RESTORA- ‘‘(II) $350,000,000 for each of fiscal years 2002 Wildlife Restoration Act (16 U.S.C. 669h–2(a)(1)) TION PROGRAM.—The term ‘wildlife conservation through 2006. is amended by inserting ‘‘(other than the Ac- and restoration program’ means a program de- ‘‘(ii) AVAILABILITY.—Notwithstanding the count)’’ after ‘‘the fund’’. veloped by a State fish and game department matter under the heading ‘FEDERAL AID IN WILD- SEC. 104. APPORTIONMENT OF AMOUNTS IN THE and approved by the Secretary under section 12. LIFE RESTORATION’ under the heading ‘FISH AND ACCOUNT. ‘‘(11) WILDLIFE CONSERVATION EDUCATION WILDLIFE SERVICE’ in title I of chapter VII of Section 4 of the Pittman-Robertson Wildlife PROJECT.—The term ‘wildlife conservation edu- the General Appropriation Act, 1951 (64 Stat. Restoration Act (16 U.S.C. 669c) is amended by cation project’ means a project, including public 693), the amount appropriated under clause striking the second subsection (c) and subsection outreach, that is intended to foster responsible (i)(II) for each of fiscal years 2002 through 2006 (d) and inserting the following: natural resource stewardship. shall be available for obligation in that fiscal ‘‘(d) APPORTIONMENT OF AMOUNTS IN THE AC- ‘‘(12) WILDLIFE-RESTORATION PROJECT.— year.’’; and COUNT.—

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‘‘(1) DEDUCTION FOR ADMINISTRATIVE EX- Columbia, the territory, or the Indian tribe re- ‘‘(ii) the cost of development, implementation, PENSES.—For each fiscal year, the Secretary spectively, diverts funds from any source of rev- and maintenance of each project that is part of may deduct, for payment of administrative ex- enue (including interest, dividends, and other the wildlife conservation and restoration pro- penses incurred by the Secretary in carrying out income earned on the revenue) available to the gram. activities funded from the Account, not more State, the District of Columbia, the territory, or ‘‘(B) FEDERAL SHARE.—The Federal share than 3 percent of the total amount of the Ac- the Indian tribe after January 1, 2000, for con- shall not exceed 75 percent. count available for apportionment for the fiscal servation of wildlife for any purpose other than ‘‘(C) TIMING OF PAYMENTS.—Under such regu- year. the administration of the State fish and game lations as the Secretary may promulgate, the ‘‘(2) APPORTIONMENT TO DISTRICT OF COLUM- department in carrying out wildlife conservation Secretary— BIA, TERRITORIES, AND INDIAN TRIBES.— activities. ‘‘(i) shall make payments to a State under ‘‘(A) IN GENERAL.—For each fiscal year, after ‘‘(5) PERIOD OF AVAILABILITY OF APPORTION- subparagraph (A) during the course of a project; making the deduction under paragraph (1), the MENTS.—Notwithstanding section 3(a)(1), for and Secretary shall apportion from the amount in each fiscal year, the apportionment to a State, ‘‘(ii) may advance funds to pay the Federal the Account remaining available for apportion- the District of Columbia, a territory, or an In- share of the costs described in subparagraph ment— dian tribe from the Account under this sub- (A). ‘‘(i) to each of the District of Columbia and section shall remain available for obligation ‘‘(D) MAXIMUM AMOUNT FOR CERTAIN ACTIVI- the Commonwealth of Puerto Rico, a sum equal until the end of the second following fiscal TIES.— ‘‘(i) IN GENERAL.—Notwithstanding section to not more than 1⁄2 of 1 percent of that remain- year.’’. 8(a), except as provided in clause (ii), for each ing amount; SEC. 105. WILDLIFE CONSERVATION AND RES- ‘‘(ii) to each of Guam, American Samoa, the TORATION PROGRAMS. fiscal year, not more than 10 percent of the ap- portionment to a State under section 4(d) for the Commonwealth of the Northern Mariana Is- (a) IN GENERAL.—The Pittman-Robertson lands, and the Virgin Islands, a sum equal to Wildlife Restoration Act is amended— wildlife conservation and restoration program of the State may be used for each of the following not more than 1⁄4 of 1 percent of that remaining (1) by redesignating sections 12 and 13 (16 amount; and U.S.C. 669i, 669 note) as sections 13 and 15, re- activities: ‘‘(I) Law enforcement activities. ‘‘(iii) to Indian tribes, a sum equal to not more spectively; and ‘‘(II) Wildlife-associated recreation projects. than 21⁄4 percent of that remaining amount, of (2) by inserting after section 11 (16 U.S.C. ‘‘(ii) EXCEPTION.—For any fiscal year, the which, subject to subparagraph (B)— 669h–2) the following: limitation under clause (i) shall not apply to ‘‘(I) 1⁄3 shall be apportioned among Indian ‘‘SEC. 12. WILDLIFE CONSERVATION AND RES- law enforcement activities or wildlife-associated tribes based on the ratio that the trust land area TORATION PROGRAMS. recreation projects in a State if the State dem- of each Indian tribe bears to the total trust land ‘‘(a) DEFINITION OF STATE.—In this section, onstrates to the satisfaction of the Secretary area of all Indian tribes; and the term ‘State’ means a State, the District of that law enforcement activities or wildlife-asso- ‘‘(II) 2⁄3 shall be apportioned among Indian Columbia, a territory, and an Indian tribe. ciated recreation projects, respectively, have a tribes based on the ratio that the population of ‘‘(b) WILDLIFE CONSERVATION AND RESTORA- significant impact on high priority conservation each Indian tribe bears to the total population TION PROGRAMS.— activities. of all Indian tribes. ‘‘(1) IN GENERAL.—A State, acting through the ‘‘(6) METHOD OF IMPLEMENTATION OF ‘‘(B) MAXIMUM APPORTIONMENT FOR EACH IN- State fish and game department, may apply to PROJECTS.—A State may implement a project DIAN TRIBE.—For each fiscal year, the amounts the Secretary— that is part of the wildlife conservation and res- apportioned under subparagraph (A)(iii) shall ‘‘(A) for approval of a wildlife conservation toration program of the State through— be adjusted proportionately so that no Indian and restoration program; and ‘‘(A) a grant made by the State to, or a con- tribe is apportioned a sum that is more than 5 ‘‘(B) to receive funds from the apportionment tract entered into by the State with— percent of the amount available for apportion- to the State under section 4(d) to develop and ‘‘(i) any Federal, State, or local agency (in- ment under subparagraph (A)(iii) for the fiscal implement the wildlife conservation and restora- cluding an agency that gathers, evaluates, and year. tion program. disseminates information on wildlife and wild- ‘‘(3) APPORTIONMENT TO STATES.— ‘‘(2) APPLICATION CONTENTS.—As part of an life habitats); ‘‘(A) IN GENERAL.—Subject to subparagraph application under paragraph (1), a State shall ‘‘(ii) an Indian tribe; (B), for each fiscal year, after making the de- provide documentation demonstrating that the ‘‘(iii) a wildlife conservation organization, duction under paragraph (1) and the apportion- wildlife conservation and restoration program of sportsmen’s organization, land trust, or other ment under paragraph (2), the Secretary shall the State includes— nonprofit organization; or apportion the amount in the Account remaining ‘‘(A) provisions vesting in the State fish and ‘‘(iv) an outdoor recreation or conservation available for apportionment among States in the game department overall responsibility and ac- education entity; and following manner: countability for the wildlife conservation and ‘‘(B) any other method determined appro- ‘‘(i) 1⁄3 based on the ratio that the area of each restoration program of the State; priate by the State. State bears to the total area of all States. ‘‘(B) provisions to identify which species in ‘‘(c) WILDLIFE CONSERVATION STRATEGY.— 2 ‘‘(ii) ⁄3 based on the ratio that the population the State are in greatest need of conservation; ‘‘(1) IN GENERAL.—Not later than 5 years after of each State bears to the total population of all and the date of the initial apportionment to a State States. ‘‘(C) provisions for the development, imple- under section 4(d), to be eligible to continue to ‘‘(B) MINIMUM AND MAXIMUM APPORTION- mentation, and maintenance, under the wildlife receive funds from the apportionment to the MENTS.—For each fiscal year, the amounts ap- conservation and restoration program, of— State under section 4(d), the State shall, as part portioned under this paragraph shall be ad- ‘‘(i) wildlife conservation projects— of the wildlife conservation and restoration pro- justed proportionately so that no State is appor- ‘‘(I) that expand and support other wildlife gram of the State, develop and implement a tioned a sum that is— programs; and wildlife conservation strategy that is based on ‘‘(i) less than 1 percent of the amount avail- ‘‘(II) that are selected giving appropriate con- the best available and appropriate scientific in- able for apportionment under this paragraph for sideration to all species of wildlife in accordance formation. the fiscal year; or with subsection (c); ‘‘(2) REQUIRED ELEMENTS.—A wildlife con- ‘‘(ii) more than 5 percent of that amount. ‘‘(ii) wildlife-associated recreation projects; servation strategy shall— ‘‘(4) USE.— and ‘‘(A) use such information on the distribution ‘‘(A) IN GENERAL.—Apportionments under ‘‘(iii) wildlife conservation education projects. and abundance of species of wildlife as is indic- paragraphs (2) and (3)— ‘‘(3) PUBLIC PARTICIPATION.—A State shall ative of the diversity and health of the wildlife ‘‘(i) shall supplement, but not supplant, funds provide an opportunity for public participation of the State, including such information on spe- available to States, the District of Columbia, ter- in the development, implementation, and revi- cies with low populations and declining num- ritories, and Indian tribes— sion of the wildlife conservation and restoration bers of individuals as the State fish and game ‘‘(I) from the fund; or program of the State and projects carried out department determines to be appropriate; ‘‘(II) from the Sport Fish Restoration Account under the wildlife conservation and restoration ‘‘(B) identify the extent and condition of wild- established by section 9504(a) of the Internal program. life habitats and community types essential to Revenue Code of 1986; and ‘‘(4) APPROVAL FOR FUNDING.—If the Sec- conservation of the species of wildlife of the ‘‘(ii) shall be used to address the unmet needs retary finds that the application submitted by a State identified using information described in for wildlife (including species that are not hunt- State meets the requirements of paragraph (2), subparagraph (A); ed or fished, and giving priority to species that the Secretary shall approve the wildlife con- ‘‘(C)(i) identify the problems that may ad- are in decline), and the habitats on which the servation and restoration program of the State. versely affect— wildlife depend, for projects authorized to be ‘‘(5) PAYMENT OF FEDERAL SHARE.— ‘‘(I) the species identified using information carried out as part of wildlife conservation and ‘‘(A) IN GENERAL.—Subject to subparagraph described in subparagraph (A); and restoration programs in accordance with section (D), after the Secretary approves a wildlife con- ‘‘(II) the habitats of the species identified 12. servation and restoration program of a State, under subparagraph (B); and ‘‘(B) PROHIBITION ON DIVERSION.—A State, the the Secretary may use the apportionment to the ‘‘(ii) provide for high priority research and District of Columbia, a territory, or an Indian State under section 4(d) to pay the Federal surveys to identify factors that may assist in the tribe shall not be eligible to receive an appor- share of— restoration and more effective conservation of— tionment under paragraph (2) or (3) if the Sec- ‘‘(i) the cost of implementation of the wildlife ‘‘(I) the species identified using information retary determines that the State, the District of conservation and restoration program; and described in subparagraph (A); and

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00284 Fmt 0624 Sfmt 6333 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S14057 ‘‘(II) the habitats of the species identified Funds made available from the Account to carry (1)(A) the endangered species of the United under subparagraph (B); out wildlife conservation education projects States; ‘‘(D)(i) describe which actions should be taken shall not be used to fund, in whole or in part, (B) the threatened species of the United to conserve— any activity that promotes or encourages oppo- States; and ‘‘(I) the species identified using information sition to the regulated hunting or trapping of (C) the species of the United States that may described in subparagraph (A); and wildlife.’’. become endangered species or threatened species ‘‘(II) the habitats of the species identified (b) CONFORMING AMENDMENT.—Section 8(a) of if conservation actions are not taken to conserve under subparagraph (B); and the Pittman-Robertson Wildlife Restoration Act and protect the species; and ‘‘(ii) establish priorities for implementing (16 U.S.C. 669g) is amended by striking the last (2) the habitats on which the species depend. those actions; and sentence. SEC. 202. ENDANGERED AND THREATENED SPE- ‘‘(E) provide for— SEC. 106. NONAPPLICABILITY OF FEDERAL ADVI- CIES RECOVERY ASSISTANCE. ‘‘(i) periodic monitoring of— SORY COMMITTEE ACT. (a) IN GENERAL.—Section 13 of the Endan- ‘‘(I) the species identified using information (a) PITTMAN-ROBERTSON WILDLIFE RESTORA- gered Species Act of 1973 (87 Stat. 902) is amend- described in subparagraph (A); TION ACT.—The Pittman-Robertson Wildlife Res- ‘‘(II) the habitats of the species identified ed to read as follows: toration Act (as amended by section 105(a)(1)) is ‘‘SEC. 13. ENDANGERED AND THREATENED SPE- under subparagraph (B); and amended by inserting after section 13 the fol- ‘‘(III) the effectiveness of the conservation ac- CIES RECOVERY ASSISTANCE. lowing: tions described under subparagraph (D); and ‘‘(a) DEFINITIONS.—In this section: ‘‘(ii) adaptation of conservation actions as ap- ‘‘SEC. 14. NONAPPLICABILITY OF FEDERAL ADVI- ‘‘(1) CONSERVATION ENTITY.— SORY COMMITTEE ACT. propriate to respond to new information or ‘‘(A) IN GENERAL.—The term ‘conservation en- ‘‘Coordination with State fish and game de- changing conditions. tity’ means a nonprofit entity that engages in partment personnel or with personnel of any ‘‘(3) PUBLIC PARTICIPATION IN DEVELOPMENT activities to conserve or protect fish, wildlife, or other agency of a State, the District of Colum- OF STRATEGY.—A State shall provide an oppor- plants, or habitats for fish, wildlife, or plants. bia, a territory, or an Indian tribe under this tunity for public participation in the develop- ‘‘(B) INCLUSIONS.—The term ‘conservation en- ment and implementation of the wildlife con- Act shall not be subject to the Federal Advisory tity’ includes— servation strategy of the State. Committee Act (5 U.S.C. App.).’’. ‘‘(i) a sportsmen’s organization; (b) DINGELL-JOHNSON SPORT FISH RESTORA- ‘‘(4) REVIEW AND REVISION.—Not less often ‘‘(ii) an environmental organization; and TION ACT.—The Dingell-Johnson Sport Fish than once every 7 years, a State shall review the ‘‘(iii) a land trust. Restoration Act is amended— wildlife conservation strategy of the State and ‘‘(2) FARM OR RANCH.—The term ‘farm or (1) by redesignating section 15 (16 U.S.C. 777 make any appropriate revisions. ranch’ means an activity with respect to which note) as section 16; and ‘‘(5) COORDINATION.—During the development, (2) by inserting after section 14 (16 U.S.C. not less than $1,000 in income is derived from implementation, review, and revision of the 777m) the following: agricultural production within a census year. wildlife conservation strategy of the State, a ‘‘(3) PERSON.—The term ‘person’ includes a State shall provide for coordination between— ‘‘SEC. 15. NONAPPLICABILITY OF FEDERAL ADVI- SORY COMMITTEE ACT. conservation entity. ‘‘(A) the State fish and game department; and ‘‘Coordination with State fish and game de- ‘‘(4) SMALL LANDOWNER.—The term ‘small ‘‘(B) Federal, State, and local agencies and partment personnel or with personnel of any landowner’ means— Indian tribes that— other State agency under this Act shall not be ‘‘(A) an individual who owns land in a State ‘‘(i) manage significant areas of land or water that— within the State; or subject to the Federal Advisory Committee Act (5 U.S.C. App.).’’. ‘‘(i) is used as a farm or ranch; and ‘‘(ii) administer programs that significantly ‘‘(ii) has an acreage of not more than the SEC. 107. TECHNICAL AMENDMENTS. affect the conservation of greater of— (a) The first section of the Pittman-Robertson ‘‘(I) the species identified using information ‘‘(I) 50 percent of the average acreage of a Wildlife Restoration Act (16 U.S.C. 669) is described in paragraph (2)(A); or farm or ranch in the State; or amended by striking ‘‘That the’’ and inserting ‘‘(II) the habitats of the species identified ‘‘(II) 160 acres of land; and the following: under paragraph (2)(B). ‘‘(B) an individual who owns land that— ‘‘(6) EFFECT OF FAILURE TO DEVELOP OR ‘‘SECTION 1. COOPERATION OF SECRETARY OF ‘‘(i) is not used as a farm or ranch; and THE INTERIOR WITH STATES. CARRY OUT WILDLIFE CONSERVATION STRATEGY.— ‘‘(ii) has an acreage of not more than 160 ‘‘(A) IN GENERAL.—If, in any fiscal year, a ‘‘The’’. acres. State fails to develop, implement, obtain the ap- (b) Section 5 of the Pittman-Robertson Wild- ‘‘(5) SPECIES AT RISK.—The term ‘species at proval of the Secretary for, review, or revise a life Restoration Act (16 U.S.C. 669d) is amended risk’ means a species that may become an en- wildlife conservation strategy as required under by striking ‘‘SEC. 5.’’ and inserting the fol- dangered species or a threatened species if con- this subsection, the apportionment to the State lowing: servation actions are not taken to conserve and under section 4(d) for the following fiscal year ‘‘SEC. 5. CERTIFICATION OF AMOUNTS DEDUCTED protect the species. shall be reapportioned in accordance with sec- OR APPORTIONED.’’. ‘‘(6) SPECIES RECOVERY AGREEMENT.—The tion 4(d) to States that carry out those activities (c) Section 6 of the Pittman-Robertson Wildlife term ‘species recovery agreement’ means an en- as required under this subsection. Restoration Act (16 U.S.C. 669e) is amended by dangered and threatened species recovery agree- ‘‘(B) CORRECTION OF DEFICIENCIES.—If a State striking ‘‘SEC. 6.’’ and inserting the following: ment entered into under subsection (c). whose apportionment for a fiscal year is re- ‘‘SEC. 6. SUBMISSION AND APPROVAL OF PLANS ‘‘(b) ENDANGERED AND THREATENED SPECIES apportioned under subparagraph (A) subse- AND PROJECTS.’’. RECOVERY ASSISTANCE.— quently carries out the activities described in (d) Section 7 of the Pittman-Robertson Wild- ‘‘(1) FINANCIAL ASSISTANCE.—The Secretary that subparagraph as required under this sub- life Restoration Act (16 U.S.C. 669f) is amended may provide financial assistance to any person section, the State shall be eligible to receive an by striking ‘‘SEC. 7.’’ and inserting the fol- for development and implementation of an en- apportionment under section 4(d) for the fiscal lowing: dangered and threatened species recovery agree- year following the fiscal year of the reappor- ‘‘SEC. 7. PAYMENT OF FUNDS TO STATES.’’. ment entered into by the Secretary and the per- tionment. (e) Section 8 of the Pittman-Robertson Wildlife son under subsection (c). ‘‘(d) USE OF FUNDS FOR NEW AND EXISTING Restoration Act (16 U.S.C. 669g) is amended by ‘‘(2) PRIORITY.—In providing financial assist- PROGRAMS AND PROJECTS.—Funds made avail- striking ‘‘SEC. 8.’’ and inserting the following: ance under this subsection, the Secretary shall able from the Account to carry out activities ‘‘SEC. 8. MAINTENANCE OF PROJECTS; FUNDING give priority to the development and implemen- under this section may be used— OF HUNTER SAFETY PROGRAMS AND ‘‘(1) to carry out new programs and projects; PUBLIC TARGET RANGES.’’. tation of species recovery agreements that— and (f) Section 8A of the Pittman-Robertson Wild- ‘‘(A) implement actions identified under recov- ‘‘(2) to enhance existing programs and life Restoration Act (16 U.S.C. 669g–1) is amend- ery plans approved by the Secretary under sec- projects. ed by striking ‘‘SEC. 8A.’’ and inserting the fol- tion 4(f); ‘‘(e) PRIORITY FOR FUNDING.—In using funds lowing: ‘‘(B) have the greatest potential for contrib- made available from the Account to carry out ‘‘SEC. 8A. APPORTIONMENTS TO TERRITORIES.’’. uting to the recovery of endangered species, activities under this section, a State shall give (g) Section 13 of the Pittman-Robertson Wild- threatened species, or species at risk; priority to species that are in greatest need of life Restoration Act (as redesignated by section ‘‘(C) benefit multiple endangered species, conservation— 105(a)(1)) is amended by striking ‘‘SEC. 13.’’ and threatened species, or species at risk; ‘‘(1) as evidenced by— inserting the following: ‘‘(D) carry out activities specified in State or local conservation plans; or ‘‘(A) a low population and declining numbers ‘‘SEC. 13. RULES AND REGULATIONS.’’. ‘‘(E) are proposed by small landowners. of individuals; SEC. 108. EFFECTIVE DATE. ‘‘(3) PROHIBITION ON ASSISTANCE FOR RE- ‘‘(B) a current threat or reasonably antici- This title takes effect on October 1, 2001. pated threat to the habitat of the species; or QUIRED ACTIVITIES.—The Secretary shall not ‘‘(C) any other similar indicator of need of TITLE II—ENDANGERED AND provide financial assistance under this sub- conservation; or THREATENED SPECIES RECOVERY section for any activity that is required— ‘‘(2) as identified in the wildlife conservation SEC. 201. PURPOSE. ‘‘(A) by a permit issued under section strategy of the State under subsection (c). The purpose of this title is to promote involve- 10(a)(1)(B); ‘‘(f) LIMITATION ON USE OF FUNDS FOR WILD- ment by non-Federal entities in the recovery ‘‘(B) by an incidental taking statement pro- LIFE CONSERVATION EDUCATION PROJECTS.— of— vided under section 7(b)(4); or

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00285 Fmt 0624 Sfmt 6333 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S14058 CONGRESSIONAL RECORD — SENATE December 20, 2001 ‘‘(C) under another provision of this Act, any mentation of the species recovery agreement, on Species Act of 1973 (16 U.S.C. prec. 1531) is other Federal law, or any State law. an annual or other basis during the period in amended by striking the item relating to section ‘‘(4) PAYMENTS UNDER OTHER PROGRAMS.— which the species recovery agreement is in ef- 13 and inserting the following: ‘‘(A) OTHER PAYMENTS NOT AFFECTED.—Fi- fect, based on the schedule for implementation ‘‘Sec. 13. Endangered and threatened species re- nancial assistance provided to a person under required under subparagraph (D)(ii); and covery assistance.’’. this subsection shall be in addition to, and shall ‘‘(J) provide that the Secretary shall, subject not affect, the total amount of payments that to paragraph (4)(C), terminate the species recov- TITLE III—NON-FEDERAL LAND the person is eligible to receive under— ery agreement if the person fails to carry out the CONSERVATION GRANT PROGRAM ‘‘(i) the conservation reserve program estab- species recovery agreement. SEC. 301. NON-FEDERAL LAND CONSERVATION lished under subchapter B of chapter 1 of sub- ‘‘(3) REVIEW AND APPROVAL OF PROPOSED SPE- GRANT PROGRAM. title D of title XII of the Food Security Act of CIES RECOVERY AGREEMENTS.—On submission by (a) IN GENERAL.—The Partnerships for Wild- 1985 (16 U.S.C. 3831 et seq.); any person of a proposed species recovery agree- life Act (16 U.S.C. 3741 et seq.) is amended by ‘‘(ii) the wetlands reserve program established ment under this subsection, the Secretary adding at the end the following: under subchapter C of that chapter (16 U.S.C. shall— ‘‘SEC. 7106. NON-FEDERAL LAND CONSERVATION 3837 et seq.); ‘‘(A) review the proposed species recovery GRANT PROGRAM. ‘‘(iii) the environmental quality incentives agreement and determine whether the species re- ‘‘(a) ESTABLISHMENT.—In consultation with program established under chapter 4 of subtitle covery agreement— appropriate State, regional, and other units of D of title XII of the Food Security Act of 1985 ‘‘(i) complies with this subsection; and government, the Secretary shall establish a com- (16 U.S.C. 3839aa et seq.); or ‘‘(ii) will contribute to the recovery of each petitive grant program, to be known as the ‘‘(iv) the Wildlife Habitat Incentive Program endangered species, threatened species, or spe- ‘Non-Federal Land Conservation Grant Pro- established under section 387 of the Federal Ag- cies at risk that is the subject of the proposed gram’ (referred to in this section as the ‘pro- riculture Improvement and Reform Act of 1996 species recovery agreement; gram’), to make grants to States or groups of (16 U.S.C. 3836a). ‘‘(B) propose to the person any additional States to pay the Federal share determined ‘‘(B) LIMITATION.—A person shall not receive provisions that are necessary for the species re- under subsection (c)(4) of the costs of conserva- financial assistance under a species recovery covery agreement to comply with this sub- tion of non-Federal land or water of regional or agreement for any activity for which the person section; and national significance. receives a payment under a program referred to ‘‘(C) if the Secretary determines that the spe- ‘‘(b) RANKING CRITERIA.—In selecting among in subparagraph (A) unless the species recovery cies recovery agreement complies with this sub- applications for grants for projects under the agreement imposes on the person a financial or section, enter into the species recovery agree- program, the Secretary shall— management obligation in addition to the obli- ment with the person. ‘‘(1) rank projects according the extent to gations of the person under that program. ‘‘(4) MONITORING OF IMPLEMENTATION OF SPE- which a proposed project will protect water- ‘‘(c) ENDANGERED AND THREATENED SPECIES CIES RECOVERY AGREEMENTS.—The Secretary sheds and important scenic, cultural, rec- RECOVERY AGREEMENTS.— shall— reational, fish, wildlife, and other ecological re- ‘‘(A) periodically monitor the implementation ‘‘(1) IN GENERAL.—In accordance with this sources; and subsection, the Secretary may enter into endan- of each species recovery agreement; ‘‘(2) subject to paragraph (1), give preference ‘‘(B) based on the information obtained from gered and threatened species recovery agree- to proposed projects— the monitoring, annually or otherwise disburse ments. ‘‘(A) that seek to protect ecosystems; financial assistance under this section to imple- ‘‘(2) REQUIRED TERMS.—The Secretary shall ‘‘(B) that are developed in collaboration with ment the species recovery agreement as the Sec- include in each species recovery agreement with other States; a person provisions that— retary determines to be appropriate under the ‘‘(C) with respect to which there has been ‘‘(A) require the person— species recovery agreement; and public participation in the development of the ‘‘(i) to carry out on real property owned or ‘‘(C) if the Secretary determines that the per- project proposal; leased by the person, or on Federal or State son is not making demonstrable progress in ac- ‘‘(D) that are supported by communities and land, activities (such as activities that, con- complishing the species recovery goals specified individuals that are located in the immediate vi- sistent with applicable State water law (includ- under paragraph (2)(C)— cinity of the proposed project or that would be ing regulations), make water available for en- ‘‘(i) propose 1 or more modifications to the directly affected by the proposed project; or species recovery agreement that are necessary to dangered species, threatened species, or species ‘‘(E) that the State considers to be a State pri- accomplish the species recovery goals; or at risk) that— ority. ‘‘(I) are not required by Federal or State law; ‘‘(ii) terminate the species recovery agreement. ‘‘(c) GRANTS TO STATES.— and ‘‘(5) LIMITATION WITH RESPECT TO FEDERAL OR ‘‘(1) NOTICE OF DEADLINE FOR APPLICATIONS.— ‘‘(II) contribute to the recovery of an endan- STATE LAND.—The Secretary may enter into a The Secretary shall give reasonable advance no- gered species, threatened species, or species at species recovery agreement with a person with tice of each deadline for submission of applica- risk; or respect to Federal or State land only if the ‘‘(ii) to refrain from carrying out on real prop- United States or the State, respectively, is a tions for grants under the program by publica- erty owned or leased by the person otherwise party to the species recovery agreement. tion of a notice in the Federal Register. lawful activities that would inhibit the recovery ‘‘(d) ALLOCATION OF FUNDS.—Of the amounts ‘‘(2) SUBMISSION OF APPLICATIONS.— ‘‘(A) IN GENERAL.—A State or group of States of an endangered species, threatened species, or made available to carry out this section for a may submit to the Secretary an application for species at risk, such as refraining from carrying fiscal year— 1 a grant under the program. out activities that, consistent with applicable ‘‘(1) ⁄3 shall be made available to provide fi- ‘‘(B) REQUIRED CONTENTS OF APPLICATIONS.— State water law (including regulations), directly nancial assistance for development and imple- Each application shall include— reduce the availability of water for such a spe- mentation of species recovery agreements by ‘‘(i) a detailed description of each proposed cies; small landowners, subject to subparagraphs (A) ‘‘(B) describe the real property referred to in through (D) of subsection (b)(2); project; 1 ‘‘(ii) a detailed analysis of project costs, in- clauses (i) and (ii) of subparagraph (A); ‘‘(2) ⁄3 shall be made available to provide fi- ‘‘(C) specify species recovery goals for the spe- nancial assistance for development and imple- cluding costs associated with— cies recovery agreement, and activities for at- mentation of species recovery agreements on ‘‘(I) planning; taining the goals; public land, subject to subparagraphs (A) ‘‘(II) administration; ‘‘(D)(i) require the person to make demon- through (D) of subsection (b)(2); and ‘‘(III) property acquisition; and strable progress in accomplishing the species re- ‘‘(3) 1⁄3 shall be made available to provide fi- ‘‘(IV) property management; covery goals; and nancial assistance for development and imple- ‘‘(iii) a statement describing how the project is ‘‘(ii) specify a schedule for implementation of mentation of species recovery agreements, sub- of regional or national significance; and the species recovery agreement; ject to subsection (b)(2). ‘‘(iv) a plan for stewardship of any land or ‘‘(E) specify actions to be taken by the Sec- ‘‘(e) LIMITATION ON ADMINISTRATIVE EX- water, or interest in land or water, to be ac- retary or the person to monitor the effectiveness PENSES.—Of the amounts made available to quired under the project. of the species recovery agreement in attaining carry out this section for a fiscal year, not more ‘‘(3) SELECTION OF GRANT RECIPIENTS.—Not the species recovery goals; than 3 percent may be used to pay administra- later than 90 days after the date of receipt of an ‘‘(F) require the person to notify the Secretary tive expenses incurred in carrying out this sec- application, the Secretary shall— if any right or obligation of the person under tion.’’. ‘‘(A) review the application; and the species recovery agreement is assigned to (b) AUTHORIZATION OF APPROPRIATIONS.—Sec- ‘‘(B)(i) notify the State or group of States of any other person; tion 15 of the Endangered Species Act of 1973 (16 the decision of the Secretary on the application; ‘‘(G) require the person to notify the Secretary U.S.C. 1542) is amended by adding at the end and if any term of the species recovery agreement is the following: ‘‘(ii) if the application is denied, provide an breached; ‘‘(d) ENDANGERED AND THREATENED SPECIES explanation of the reasons for the denial. ‘‘(H) specify the date on which the species re- RECOVERY ASSISTANCE.—There is authorized to ‘‘(4) COST SHARING.—The Federal share of the covery agreement takes effect and the period of be appropriated to carry out section 13 costs of a project under the program shall be— time during which the species recovery agree- $150,000,000 for each of fiscal years 2002 through ‘‘(A) in the case of a project to acquire an in- ment shall remain in effect; 2006.’’. terest in land or water that is not a permanent ‘‘(I) schedule the disbursement of financial as- (c) CONFORMING AMENDMENT.—The table of conservation easement, not more than 50 percent sistance provided under subsection (b) for imple- contents in the first section of the Endangered of the costs of the project;

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00286 Fmt 0624 Sfmt 6333 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S14059 ‘‘(B) in the case of a project to acquire a per- ‘‘(ii) if restored to natural grassland or or conservation entity receives a payment under manent conservation easement, not more than shrubland, would have the potential to serve as a program referred to in paragraph (1) unless 70 percent of the costs of the project; and habitat for endangered species, threatened spe- the conservation agreement imposes on the land- ‘‘(C) in the case of a project involving 2 or cies, or species at risk, as determined by the Sec- owner, permit holder, or conservation entity a more States, not more than 75 percent of the retary. financial or management obligation in addition costs of the project. ‘‘(5) ENDANGERED SPECIES.—The term ‘endan- to the obligations of the landowner, permit hold- ‘‘(5) EFFECT OF INSUFFICIENCY OF FUNDS.—If gered species’ has the meaning given the term in er, or conservation entity under that program. the Secretary determines that there are insuffi- section 3 of the Endangered Species Act of 1973 ‘‘(e) PROHIBITION ON ASSISTANCE FOR RE- cient funds available to make grants with re- (16 U.S.C. 1532). QUIRED ACTIVITIES.—The Secretary shall not spect to all applications that meet the require- ‘‘(6) PERMIT HOLDER.—The term ‘permit hold- award a grant under this section for any activ- ments of this subsection, the Secretary shall give er’ means an individual who holds a grazing ity that is required under Federal or State law. priority to those projects that best meet the permit for covered land that is the subject of a ‘‘(f) AUTHORIZATION OF APPROPRIATIONS.— ranking criteria established under subsection conservation agreement. There is authorized to be appropriated to carry (b). ‘‘(7) PROGRAM.—The term ‘program’ means out this section $50,000,000 for each of fiscal ‘‘(6) GRANTS TO STATE OF NEW HAMPSHIRE.— the conservation assistance program established years 2002 through 2006.’’. Notwithstanding subsection (b) and paragraphs under subsection (b). Mr. REID. Mr. President, Senator (3) and (5), the Secretary shall make grants ‘‘(8) SPECIES AT RISK.—The term ‘species at under the program to the State of New Hamp- risk’ means a species that may become an en- SMITH has an amendment at the desk. shire to pay the Federal share determined under dangered species or a threatened species if con- I ask for its consideration; that the paragraph (4) of the costs of acquiring con- servation actions are not taken to conserve and amendment be agreed to, the motion to servation easements with respect to land or protect the species. reconsider be laid upon the table, the water located in northern New Hampshire and ‘‘(9) THREATENED SPECIES.—The term ‘threat- committee substitute amendment be sold by International Paper to the Trust for ened species’ has the meaning given the term in agreed to, the bill, as amended, be read Public Land. section 3 of the Endangered Species Act of 1973 three times and passed, and the motion ‘‘(d) REPORT.—Not later than 60 days after (16 U.S.C. 1532). to reconsider be laid upon the table, the end of each fiscal year, the Secretary shall ‘‘(b) ESTABLISHMENT OF PROGRAM.—As soon submit to the Committee on Environment and as practicable after the date of enactment of this with no further intervening action or Public Works of the Senate and the Committee section, the Secretary shall establish a conserva- debate, and any statements be printed on Resources of the House of Representatives a tion assistance program to encourage the con- in the RECORD. report describing the grants made under this servation and restoration of covered land. The PRESIDENT pro tempore. With- section, including an analysis of how projects ‘‘(c) CONSERVATION AGREEMENTS.— out objection, it is so ordered. were ranked under subsection (b). ‘‘(1) IN GENERAL.—In carrying out the pro- The amendment (No. 2694) was agreed ‘‘(e) AUTHORIZATION OF APPROPRIATIONS.— gram, the Secretary shall enter into a conserva- to, as follows: There are authorized to be appropriated— tion agreement with a landowner, permit holder, ‘‘(1) to carry out this section (other than sub- or conservation entity with respect to covered On page 49, strike lines 7 through 14 and in- section (c)(6)) $50,000,000 for each of fiscal years land under which— sert the following: 2002 through 2006; and ‘‘(A) the Secretary shall award a grant to the (1) Section 3 of the Pittman-Robertson ‘‘(2) to carry out subsection (c)(6) $9,000,000 landowner, permit holder, or conservation enti- Wildlife Restoration Act (16 U.S.C. 669b) is for the period of fiscal years 2002 and 2003.’’. ty; and amended— (b) CONFORMING AMENDMENT.—Section ‘‘(B) the landowner, permit holder, or con- (A) in the first sentence of subsection 7105(g)(2) of the Partnerships for Wildlife Act servation entity shall use the grant to carry out (a)(1)— (16 U.S.C. 3744(g)(2)) is amended by striking 1 or more conservation activities on the covered (i) by inserting ‘‘(other than the Account)’’ ‘‘this chapter’’ and inserting ‘‘this section’’. land that is the subject of the conservation after ‘‘wildlife restoration fund’’; and (ii) by inserting before the period at the TITLE IV—CONSERVATION AND RESTORA- agreement. end the following: ‘‘(other than sections 4(d) TION OF SHRUBLAND AND GRASSLAND ‘‘(2) PERMITTED ACTIVITIES.— ‘‘(A) IN GENERAL.—Subject to subparagraph and 12)’’; and SEC. 401. CONSERVATION AND RESTORATION OF (B) in subsection (b), by inserting ‘‘(other SHRUBLAND AND GRASSLAND. (B), a conservation agreement may permit on than the Account)’’ after ‘‘the fund’’ each The Partnerships for Wildlife Act (16 U.S.C. the covered land subject to the conservation place it appears. 3741 et seq.) (as amended by section 301(a)) is agreement— On page 74, line 11, insert ‘‘(other than an amended by adding at the end the following: ‘‘(i) operation of a managed grazing system; ‘‘(ii) haying or mowing (except during the incidental taking statement with respect to ‘‘SEC. 7107. CONSERVATION AND RESTORATION nesting season for birds); a species recovery agreement entered into by OF SHRUBLAND AND GRASSLAND. ‘‘(iii) fire rehabilitation; and the Secretary under subsection (c))’’ before ‘‘(a) DEFINITIONS.—In this section: ‘‘(iv) the construction of fire breaks and the semicolon. ‘‘(1) CONSERVATION ACTIVITY.—The term ‘con- fences. servation activity’ means— The committee amendment in the ‘‘(B) LIMITATION.—An activity described in ‘‘(A) a project or activity to reduce erosion; nature of a substitute, as amended, was subparagraph (A) may be permitted only if the ‘‘(B) a prescribed burn; agreed to. ‘‘(C) the restoration of riparian habitat; activity contributes to maintaining the viability of natural grass and shrub plant communities The bill (S. 990), as amended, was ‘‘(D) the control or elimination of invasive or read the third time and passed. exotic species; on the covered land subject to the conservation ‘‘(E) the reestablishment of native grasses; agreement. f ‘‘(d) PAYMENTS UNDER OTHER PROGRAMS.— and DESIGNATION OF GEORGE P. ‘‘(F) any other project or activity that restores ‘‘(1) OTHER PAYMENTS NOT AFFECTED.—A or enhances habitat for endangered species, grant awarded to a landowner, permit holder, or SHULTZ NATIONAL FOREIGN AF- threatened species, or species at risk. conservation entity under this section shall be FAIRS TRAINING CENTER ‘‘(2) CONSERVATION AGREEMENT.—The term in addition to, and shall not affect, the total Mr. REID. Mr. President, I ask con- ‘conservation agreement’ means an agreement amount of payments that the landowner, permit holder, or conservation entity is eligible to re- sent that the Foreign Relations Com- entered into under subsection (c). mittee be discharged from further con- ‘‘(3) CONSERVATION ENTITY.— ceive under— ‘‘(A) IN GENERAL.—The term ‘conservation en- ‘‘(A) the conservation reserve program estab- sideration of H.R. 3348, and the Senate tity’ means a nonprofit entity that engages in lished under subchapter B of chapter 1 of sub- proceed to its immediate consider- activities to conserve or protect fish, wildlife, or title D of title XII of the Food Security Act of ation. plants, or habitats for fish, wildlife, or plants. 1985 (16 U.S.C. 3831 et seq.); The PRESIDENT pro tempore. With- ‘‘(B) INCLUSIONS.—The term ‘conservation en- ‘‘(B) the wetlands reserve program established out objection, it is so ordered. The under subchapter C of that chapter (16 U.S.C. tity’ includes— clerk will report the title of the bill. ‘‘(i) a sportsmen’s organization; 3837 et seq.); ‘‘(ii) an environmental organization; and ‘‘(C) the environmental quality incentives pro- The legislative clerk read as follows: ‘‘(iii) a land trust. gram established under chapter 4 of subtitle D A bill (H.R. 3348) to designate the National ‘‘(4) COVERED LAND.—The term ‘covered land’ of title XII of the Food Security Act of 1985 (16 Foreign Affairs Training Center as the means public or private— U.S.C. 3839aa et seq.); or George P. Shultz National Foreign Affairs ‘‘(A) natural grassland or shrubland that ‘‘(D) the Wildlife Habitat Incentive Program Training Center. serves as habitat for endangered species, threat- established under section 387 of the Federal Ag- There being no objection, the Senate ened species, or species at risk, as determined by riculture Improvement and Reform Act of 1996 proceeded to the immediate consider- the Secretary; or (16 U.S.C. 3836a). ation of the bill. ‘‘(B) other land that— ‘‘(2) LIMITATION.—A landowner, permit hold- ‘‘(i) is located in an area that has been his- er, or conservation entity shall not receive a Mr. REID. I ask consent the bill be torically dominated by natural grassland or grant under a conservation agreement for any read three times, passed, the motion to shrubland; and activity for which the landowner, permit holder, reconsider be laid upon the table, and

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00287 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S14060 CONGRESSIONAL RECORD — SENATE December 20, 2001 any statements be printed in the sitive equipment getting into the California, a new section 206 on con- RECORD. hands of enemies or of unstable re- gressional notification of small arms The PRESIDENT pro tempore. With- gimes. So there is a tension between and light weapons export license ap- out objection, it is so ordered. the need for efficiency and the need not provals. This section makes license ap- The bill (H.R. 3348) was read the third to make the mistake that ends up put- provals for commercial sales of such time and passed. ting U.S. lives at risk. This bill ad- weapons, with a value over $1,000,000, subject to the prior notice provisions of f dresses that tension by providing funds for improved staffing levels, informa- section 36(c) of the Arms Export Con- SECURITY ASSISTANCE ACT OF tion and communications to enable the trol Act. It also requires annual re- 2001 State Department to make quicker and ports on end-use monitoring of such Mr. REID. I ask unanimous consent smarter export licensing decisions. arms transfers, the yearly value of that the Senate proceed to the imme- The Security Assistance Act of 2001 such transfers, the activities of reg- diate consideration of Calendar No. 276, includes several new nonproliferation istered arms brokers, and efforts of the S. 1803. and antiterrorism measures. For exam- Bureau of Alcohol, Tobacco and Fire- The PRESIDENT pro tempore. The ple, the ban on arms sales to state sup- arms to stop U.S. weapons from being clerk will report the bill by title. porters of terrorism, in section 40(d) of used in terrorist acts and international The legislative clerk read as follows: the Arms Export Control Act, is broad- crime. ened to include states engaging in the I want to commend Senator FEIN- A bill (S. 1803) to authorize appropriations under the Arms Export Control Act and the proliferation of chemical, biological or STEIN for raising this issue, which is Foreign Assistance Act of 1961 for security radiological weapons. central to our efforts to stem wars and assistance for fiscal years 2002 and 2003, and Subtitle III–C of this bill establishes civil bloodshed in Africa and other re- for other purposes. an interagency committee to coordi- gions. The United States leads the way There being no objection, the Senate nate nonproliferation programs di- on this issue, but we must do more. proceeded to the immediate consider- rected at the independent states of the Senator FEINSTEIN’s proposals for U.S. ation of the bill. former Soviet Union. This provision is policy and international negotiations based on S. 673, a bill introduced by in this field are contained in S. 1555, AMENDMENT NO. 2695 Senator HAGEL and me with the co- which has been referred to the Com- (Purpose: To make managers’ amendments to the text of the bill) sponsorship of Senators DOMENICI and mittee on Foreign Relations. I will LUGAR. It will ensure continuing, high- work with her and with my House and Mr. REID. I understand Senators level coordination of our many non- Senate colleagues in the coming weeks BIDEN and HELMS have an amendment proliferation programs, so that we can and months to see whether we can at the desk, and I ask unanimous con- be more confident that they will mesh agree on further steps on small arms sent it be considered. with each other. The need for better and light weapons exports. Personally, The PRESIDENT pro tempore. With- coordination was cited in the report, I think we can do so. out objection, it is so ordered. earlier this year, of the Russia Task The managers’ amendment deletes Mr. BIDEN. Mr. President, I am very Force chaired by former Senator How- subsection 221(c), and I am sorry that pleased to urge Senate adoption of S. ard Baker and former White House we had to do this. This subsection 1803, the Security Assistance Act of counsel Lloyd Cutler. would have returned to Israel certain 2001. This is legislation that the For- Section 308 of this bill encourages the funds that Israel was forced to give eign Relations Committee reports out Secretary of State to seek an increase back to the United States due to a gen- each year, either free-standing or as a in the regular budget of the Inter- eral rescission last year. This provision title in our State Department author- national Atomic Energy Agency, be- was first proposed by Republican staff ization bill. yond that required to keep pace with to the Foreign Relations Committee, But the substance of the Security As- inflation, and funds are authorized for when the Republicans were in the ma- sistance Act is anything but routine. It the U.S. share of such an enlarged jority, but it was one that I heartily includes: foreign military assistance, budget. This organization is vital to supported. The $4,000,000 at stake may including Foreign Military Financing, our nuclear nonproliferation efforts, be a small amount of money, but each FMF, and International Military Edu- and its workload is increasing. The dollar we provide to Israel is given be- cation and Training, IMET; inter- lack of a sufficient assessed budget has cause it serves our national security national arms transfers; and many of impaired its ability to hire and retain interests. our arms control, nonproliferation and top-flight scientists, however, so the Unfortunately, the chairman of the anti-terrorism programs. Committee believes that an increase in Appropriations Subcommittee on For- The Security Assistance Act of 2001 that budget is essential. eign Operations and the chairman of covers those programs and includes not Subtitle III–B of this bill authorizes the full Appropriations Committee ob- only routine adjustments, but also the President to offer Soviet-era debt jected strongly to this provision, not some significant initiatives. For exam- reduction to the Russian Federation in the least because it was scored by the ple, a 5-year National Security Assist- the context of an arrangement whereby Congressional Budget Office as an ap- ance Strategy is mandated, so as to a significant proportion of the savings propriation. I intend to press this issue provide country-by-country foreign to Russia would be invested in agreed in the coming year, and I hope that my policy guidance to a function that may nonproliferation programs or projects. good friends from Vermont and West tend otherwise to operate on the basis Debt reduction is a potentially impor- Virginia will work with me to provide more of military or bureaucratic con- tant means of funding the costs of se- these funds. If we are ever to have a cerns. curing Russia’s stockpiles of sensitive lasting peace in the Middle East, we Several provisions are designed to nuclear material, chemical weapons must do all we can to give Israel con- streamline the arms export control and dangerous pathogens, of destroying fidence that the United States will con- system, so as to make it more efficient its chemical weapons and dismantling tinue to help assure that country’s and responsive to competitive require- strategic weapons, and of helping its continued sovereignty and well-being. ments in a global economy, without former weapons experts to find civilian Section 242, on funds for humani- sacrificing controls that serve foreign careers and resist offers from rogue tarian demining programs, is amended policy or nonproliferation purposes. states or terrorists. The Administra- in two respects. First, we have deleted This is a vital enterprise. U.S. industry tion is reportedly considering this any number for the Fiscal Year 2003 au- depends upon the efficient processing funding option, and this bill gives the thorization for these programs. I wel- of arms export applications, and U.S. President authority to pursue it. come this change, because it comes firms lose contracts when the U.S. A few changes were made in a man- with suggestions that the Foreign Op- Government cannot make up its mind agers’ amendment to this bill, which I erations Subcommittee may look fa- expeditiously. would like to summarize for the record. vorably on an increase in that figure. I At the same time, however, an ill-ad- The managers’ amendment adds, at will work with that subcommittee on vised export license could lead to sen- the request of Senator FEINSTEIN of this matter, and I would hope that in

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00288 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S14061 conference we could insert a higher fig- agreements, is deleted by the man- The PRESIDENT pro tempore. The ure for Fiscal Year 2003 than the agers’ amendment. There were ques- clerk will report the bill by title. $40,000,000 that has been spent on hu- tions from other committees as to The legislative clerk read as follows: manitarian demining each of the last whether this was within our jurisdic- A bill (S. 1608) to establish a program to several years. tion. I hope we can resolve those con- provide grants to drinking water and waste- The second change is to delete sub- cerns, because the fact remains that water facilities to meet immediate security section (b) of section 242. The Foreign other countries’ nonproliferation and needs. Relations Committee, in its desire to export control laws and actions are rel- There being no objection, the Senate increase funds for humanitarian evant to the question of whether we proceeded to consider the bill which demining, had suggested that the Sec- should engage in free trade with those had been reported from the Committee retary of State be authorized to pro- countries. on Environment and Public Works, vide up to $40,000,000 from development The managers’ amendment inserts with an amendment to strike all after assistance funds in addition to the into section 701 authorizing certain the enacting clause and inserting in $40,000,000 authorized in the State De- ship transfers, a subsection authorizing lieu thereof the following: partment’s Nonproliferation, Anti- the transfer of four KIDD-class guided SECTION 1. WATER SECURITY GRANTS. terrorism, Demining and Related Pro- missible destroyers to Taiwan. This (a) DEFINITIONS.—In this Act: grams account. The Foreign Operations provision was accidentially omitted (1) ADMINISTRATOR.—The term ‘‘Adminis- Subcommittee informs us that this is from the bill at the Committee’s busi- trator’’ means the Administrator of the Environ- not tenable, and I accept their point ness meeting. In fact, these ship trans- mental Protection Agency. (2) ELIGIBLE ENTITY.—The term ‘‘eligible enti- that this would have been robbing fers, and the others in this bill, have already been enacted in the defense au- ty’’ means a publicly- or privately-owned drink- Peter to pay Paul. I think we have ing water or wastewater facility. made our point, however, that more thorization act. The Foreign Relations (3) ELIGIBLE PROJECT OR ACTIVITY.— funds are needed for this program, Committee is the committee of juris- (A) IN GENERAL.—The term ‘‘eligible project or which has an important political im- diction on this matter, so we do that in activity’’ means a project or activity carried out pact in addition to providing humani- this bill. by an eligible entity to address an immediate tarian benefits. One issue that is not addressed in physical security need. Another provision that is deleted in this bill, but that is of considerable in- (B) INCLUSIONS.—The term ‘‘eligible project or the managers’ amendment is section terest to Senator MILKULSKI and oth- activity’’ includes a project or activity relating ers, is the need for a Center for to— 302, (on an interagency program to pre- (i) security staffing; vent diversion of sensitive U.S. tech- Antiterrorism and Security Training in (ii) detection of intruders; nology). This was an effort to authorize the Department of State. We tried to (iii) installation and maintenance of fencing, the Secretary of State to institute new get funding for this in Fiscal Year 2001, gating, or lighting; joint programs with the Department of but the executive branch went to the (iv) installation of and monitoring on closed- Commerce and the Commissioner of wrong subcommittee of the Appropria- circuit television; tions Committee and this center fell (v) rekeying of doors and locks; Customs to improve our export control, (vi) site maintenance, such as maintenance to as well as a program to use retired in- between the cracks. Now, as our Antiterrorism Assistance Program in- increase visibility around facilities, windows, spectors and investigators from the and doorways; U.S. Customs Service and the Bureau creases its course offerings for security (vii) development, acquisition, or use of guid- of Export Enforcement in our diplo- personnel from friendly countries, the ance manuals, educational videos, or training matic missions overseas. Another com- need for a training center is greater programs; and mittee questioned our jurisdiction in than ever. The Security Assistance Act (viii) a program established by a State to pro- this matter, and we did not have time may not be the best vehicle in which to vide technical assistance or training to water address this issue, but I want to assure and wastewater facility managers, especially to work out this matter today, so we such a program that emphasizes small or rural are dropping the provision. The need my good friend from Maryland that we work on this and that we will assure eligible entities. remains, however, to make more use of (C) EXCLUSIONS.—The term ‘‘eligible project or the many talents of current and former the State Department of our support activity’’ does not include any large-scale or Commerce and Customs personnel. Es- for a new center. system-wide project that includes a large capital pecially in our overseas missions, those Even with the managers’ amend- improvement or vulnerability assessment. people can make contracts with law en- ments this is a good bill that will con- (b) ESTABLISHMENT OF PROGRAM.— tribute to our national security. I am (1) IN GENERAL.—The Administrator shall es- forcement and border control officials tablish a program to allocate to States, in ac- in foreign countries that traditional happy to urge support of it and I am very pleased that my colleagues appear cordance with paragraph (2), funds for use in diplomats have a hard time achieving. awarding grants to eligible entities under sub- So I hope that we can work something ready to approve it. Mr. REID. I ask consent the amend- section (c). out on this issue in the weeks and (2) ALLOCATION TO STATES.—Not later than 30 ment be agreed to, the bill be read the months to come. days after the date on which funds are made Another provision in the managers’ third time and passed, and the motion available to carry out this section, the Adminis- amendment inserts into section 404, on to reconsider be laid upon the table, trator shall allocate the funds to States in ac- improvements to the Automated Ex- with no intervening action or debate, cordance with the formula for the distribution and any statements be printed in the of funds described in section 1452(a)(1)(D) of the port System new subsections to extend Safe Drinking Water Act (42 U.S.C. 300j– the range of exporters that must file RECORD. The PRESIDENT pro tempore. With- 12(a)(1)(D)). their Shippers’ Export Declarations out objection, it is so ordered. (3) NOTICE.—Not later than 30 days after the electronically and to increase the pen- The amendment (No. 2695) was agreed date described in paragraph (2), each State shall provide to each eligible entity in the State a no- alties for failure to file and for filing to. false information. An earlier version of tice that funds are available to assist the eligible (The amendment is printed in today’s entity in addressing immediate physical security these subsections was deleted by the RECORD under ‘‘Amendments Sub- Committee at the request of Senator needs. mitted and Proposed.’’) (c) AWARD OF GRANTS.— ENZI of Wyoming, who spotted some The bill (S. 1803), as amended, was (1) APPLICATION.—An eligible entity that seeks faulty language. The version added to read the third time and passed. to receive a grant under this section shall sub- the managers’ amendment was worked [The bill will appear in a future edi- mit to the State in which the eligible entity is lo- out with Senator ENZI and with the De- tion of the RECORD.] cated an application for the grant in such form and containing such information as the State partment of Commerce, and I am f pleased to thank my friend from Wyo- may prescribe. ming, who is a new member of the For- TO PROVIDE GRANTS TO DRINK- (2) CONDITION FOR RECEIPT OF GRANT.—An eli- gible entity that receives a grant under this sec- eign Relations Committee, but an ex- ING WATER AND WASTEWATER FACILITIES tion shall agree to expend all funds provided by pert in export control, for his sage the grant not later than September 30 of the fis- counsel on this provision. Mr. REID. I ask unanimous consent cal year in which this Act is enacted. Section 602 of this bill, on non- that the Senate proceed to the consid- (3) DISADVANTAGED, SMALL, AND RURAL ELIGI- proliferation interests and free trade eration of Calendar No. 273, S. 1608. BLE ENTITIES.—A State that awards a grant

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00289 Fmt 0624 Sfmt 6333 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S14062 CONGRESSIONAL RECORD — SENATE December 20, 2001 under this section shall ensure, to the maximum FEDERAL JUDICIARY PROTECTION We are seeing more violence and extent practicable in accordance with the in- ACT OF 2001 threats of violence against officials of come and population distribution of the State, Mr. REID. I ask unanimous consent our Federal government. In July, we that a sufficient percentage of the funds allo- commemorated the lives of two Capitol cated to the State under subsection (b)(2) are the Senate proceed to the immediate available for disadvantaged, small, and rural el- consideration of Calendar No. 105, S. Police officers, Officer Jacob Chestnut igible entities in the State. 1099. and Detective John Gibson, who were (d) ELIGIBLE PROJECTS AND ACTIVITIES.— The PRESIDENT pro tempore. The slain in the line of duty in the Capitol (1) IN GENERAL.—A grant awarded by a State clerk will report the bill by title. Building in 1998. A courtroom in Ur- under subsection (c) shall be used by an eligible The legislative clerk read as follows: bana, Illinois, was firebombed recently, entity to carry out 1 or more eligible projects or apparently by a disgruntled litigant. activities. A bill (S. 1099) to increase the criminal (2) COORDINATION WITH EXISTING TRAINING penalty for assaulting or threatening Fed- And we also continue to mourn the vic- PROGRAMS.—In awarding a grant for an eligible eral judges or family members and other tims of the horrible tragedy of the project or activity described in subsection public servants and for other purposes. bombing of the federal office building (a)(3)(B)(vii), a State shall, to the maximum ex- There being no objection, the Senate in Oklahoma City in 1995. tent practicable, coordinate with training pro- proceeded to consider the bill. In my home state during the summer grams of rural water associations of the State Mr. LEAHY. Mr. President, I am of 1997, a Vermont border patrol offi- that are in effect as of the date on which the pleased that the Senate is passing the cer, John Pfeiffer, was seriously grant is awarded. Smith-Leahy Federal Judiciary Pro- (e) AUTHORIZATION OF APPROPRIATIONS.— wounded by Carl Drega, during a shoot- There is authorized to be appropriated to carry tection Act, S. 1099. out with Vermont and New Hampshire out this section $50,000,000 for the fiscal year in In the last two Congresses, I joined law enforcement officers in which which this Act is enacted. as an original cosponsor of identical Drega lost his life. Earlier that day, Mr. REID. I ask unanimous consent legislation introduced by Senator GOR- Drega shot and killed two state troop- the committee amendment in the na- DON SMITH, which unanimously passed ers and a local judge in New Hamp- ture of a substitute be agreed to, the the Senate Judiciary Committee and shire. Apparently, Drega was bent on bill, as amended, be read the third time the Senate but was not acted upon by settling a grudge against the judge who and passed, the motion to reconsider be the House of Representatives. I com- had ruled against him in a land dis- laid upon the table, and any state- mend the Senator from Oregon for his pute. I had a chance to visit John ments be printed in the RECORD. continued leadership in protecting pub- Pfeiffer in the hospital and met his The PRESIDENT pro tempore. With- lic servants in our Federal government. wife and young daughter. As a federal out objection, it is so ordered. Our bipartisan legislation would pro- law enforcement officer, Agent Pfeiffer The committee amendment in the vide greater protection to Federal and his family will receive greater pro- nature of a substitute was agreed to. judges, law enforcement officers, and tection under our bill. The bill (S. 1608), as amended, was United States officials and their fami- lies. Federal law enforcement officers, After the tragic events of September read the third time and passed. 11, it is even more important that we f under our bill, include United States Capitol Police Officers. United States protect the dedicated women and men WAIVING CERTAIN LIMITATIONS officials, under our bill, include the throughout the Federal Judiciary and IN THE USE OF FUNDS TO PAY President, Vice President, Cabinet Sec- Federal government in this country THE COSTS OF PROJECTS IN RE- retaries and Members of Congress. who do a tremendous job under dif- SPONSE TO THE ATTACK ON THE Specifically, our legislation would: ficult circumstances. They are exam- WORLD TRADE CENTER increase the maximum prison term for ples of the hard-working public serv- Mr. REID. Mr. President, I ask unan- forcible assaults, resistance, intimida- ants that make up the federal govern- imous consent the Senate proceed to tion or interference with a Federal ment, who are too often maligned and Calendar No. 275, S. 1637. judge, law enforcement officer or unfairly disparaged. The PRESIDENT pro tempore. The United States official from 3 years im- It is unfortunate that it takes acts or clerk will report the bill by title. prisonment to 8 years; increase the threats of violence to put a human face The legislative clerk read as follows: maximum prison term for use of a on the Federal Judiciary, law enforce- A bill (S. 1637) to waive certain limitations deadly weapon or infliction of bodily ment officers and U.S. officials, to re- in the case of use of the emergency fund au- injury against a Federal judge, law en- mind everyone in our democracy that thorized by section 125 of title 23, United forcement officer or United States offi- these are people with children and par- States Code, to pay the costs of projects in cial from 10 years imprisonment to 20 ents and friends. They deserve our re- response to the attack on the World Trade years; and increase the maximum pris- spect and our protection. Center in New York City that occurred on September 11, 2001. on term for threatening murder or kid- Mr. REID. I ask unanimous consent napping of a member of the immediate There being no objection, the Senate the bill be read the third time and family of a Federal judge or law en- proceeded to consider the bill. passed, the motion to reconsider be forcement officer from 5 years impris- Mr. REID. Senator CLINTON has an laid upon the table, and any state- amendment at the desk. I ask for its onment to 10 years. ments be printed in the RECORD. Our bipartisan bill has the support of consideration, that the amendment be The PRESIDENT pro tempore. With- the Department of Justice, the United agreed to, the motion to reconsider be out objection, the several requests are States Judicial Conference, the United laid upon the table, the bill, as amend- granted. States Sentencing Commission and the ed, be read three times and passed, and United States Marshal Service. The bill (S. 1099) was read the third the motion to reconsider be laid on the It is most troubling that the greatest time and passed, as follows: table, with no intervening action or de- democracy in the world needs this leg- S. 1099 bate, and any statements pertaining islation to protect the hard working thereto be printed in the RECORD. Be it enacted by the Senate and House of Rep- men and women who serve in our Fed- The PRESIDENT pro tempore. With- resentatives of the United States of America in eral government. Just a few months out objection, it is so ordered. Congress assembled, The amendment (No. 2696) was agreed ago, I was saddened to read about SECTION 1. SHORT TITLE. death threats against my colleague to, as follows: This Act may be cited as the ‘‘Federal Ju- On page 2, strike lines 10 through 14 and in- from Vermont after his act of con- diciary Protection Act of 2001’’. sert the following: science in declaring himself an Inde- SEC. 2. ASSAULTING, RESISTING, OR IMPEDING ‘‘shall be 100 percent; and pendent. CERTAIN OFFICERS OR EMPLOYEES. ‘‘(2) notwithstanding section 125(d)(1) of Senator JEFFORDS received multiple that’’. threats against his life, which forced Section 111 of title 18, United States Code, is amended— The bill (S. 1637), as amended, was around-the-clock police protection. (1) in subsection (a), by striking ‘‘three’’ read the third time and passed. These unfortunate threats made a dif- and inserting ‘‘8’’; and [The bill will appear in a future edi- ficult time even more difficult for Sen- (2) in subsection (b), by striking ‘‘ten’’ and tion of the RECORD.] ator JEFFORDS and his family. inserting ‘‘20’’.

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00290 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S14063 SEC. 3. INFLUENCING, IMPEDING, OR RETALI- IMMIGRATION AND NATIONALITY There being no objection, the Senate ATING AGAINST A FEDERAL OFFI- ACT AMENDMENTS proceeded to consider the bill. CIAL BY THREATENING OR INJUR- Mr. NICKLES. Mr. President, for the ING A FAMILY MEMBER. Mr. REID. Mr. President, I ask unan- information of colleagues regarding imous consent that we move now to Section 115(b)(4) of title 18, United States H.R. 2869, I ask unanimous consent the Calendar No. 292, H.R. 2278. Code, is amended— following letter be printed in the (1) by striking ‘‘five’’ and inserting ‘‘10’’; The PRESIDENT pro tempore. The RECORD: and clerk will report the bill by title. (2) by striking ‘‘three’’ and inserting ‘‘6’’. The legislative clerk read as follows: There being no objection, the letter was ordered to be printed in the SEC. 4. MAILING THREATENING COMMUNICA- A bill (H.R. 2278) to provide for work au- RECORD, as follows: TIONS. thorization for nonimmigrant spouses of intracompany transferees, and to reduce the ENVIRONMENTAL PROTECTION AGENCY, Section 876 of title 18, United States Code, period of time during which certain Washington, DC, December 20, 2001. is amended— intracompany transferees have to be con- MEMORANDUM (1) by designating the first 4 undesignated tinuously employed before applying for ad- Subject: Davis Bacon Act Applicability paragraphs as subsections (a) through (d), re- mission to the United States. spectively; Under Brownfields Legislation. (2) in subsection (c), as redesignated by There being no objection, the Senate From: Robert E. Fabricant, General Counsel. paragraph (1), by adding at the end the fol- proceeded to consider the bill. To: Marianne Horinko, Assistant Adminis- trator, Office of Solid Waste and Emer- lowing: ‘‘If such a communication is ad- Mr. REID. I ask unanimous consent gency Response. dressed to a United States judge, a Federal the bill be read the third time and As you know, the House of Representatives law enforcement officer, or an official who is passed, the motion to reconsider be has passed a bill, H.R. 2869, which we are in- covered by section 1114, the individual shall laid on the table with no intervening formed would amend CERCLA to add a new be fined under this title, imprisoned not action or debate, and any statements section 104(k), ‘‘Brownfields Revitalization more than 10 years, or both.’’; and be printed in the RECORD. Funding.’’ We have been asked whether (3) in subsection (d), as redesignated by CERCLA, if amended as proposed in H.R. paragraph (1), by adding at the end the fol- The PRESIDENT pro tempore. With- out objection, the several requests are 2869, would require that the Davis-Bacon Act lowing: ‘‘If such a communication is ad- apply to contracts under loans made from a dressed to a United States judge, a Federal granted. Brownfields Revolving Loan Fund (BRLF) law enforcement officer, or an official who is The bill (H.R. 2278) was read the third entirely with non-federal funds. We have covered by section 1114, the individual shall time and passed. concluded that H.R. 2869 does not change the be fined under this title, imprisoned not f legal applicability of the Davis-Bacon Act to more than 10 years, or both.’’. the Brownfields program. We have also con- WORK AUTHORIZATION FOR NON- cluded that this bill neither requires nor pro- SEC. 5. AMENDMENT OF THE SENTENCING GUIDELINES FOR ASSAULTS AND IMMIGRANT SPOUSES OF TREA- hibits the application of the Davis-Bacon Act THREATS AGAINST FEDERAL TY TRADERS AND TREATY IN- to contracts under BRLF loans made en- JUDGES AND CERTAIN OTHER FED- VESTORS tirely with non-grant funds, e.g., principal ERAL OFFICIALS AND EMPLOYEES. and interest loan payments. CERCLA would Mr. REID. I ask unanimous consent continue to require that the Davis-Bacon (a) IN GENERAL.—Pursuant to its authority the Senate proceed to the immediate Act apply to contracts under BRLF loans under section 994 of title 28, United States consideration of Calendar No. 291, H.R. made in whole or in part with federal grant Code, the United States Sentencing Commis- 2277. funds. Finally, state cleanup programs that sion shall review and amend the Federal sen- The PRESIDENT pro tempore. The operate independently and are not funded tencing guidelines and the policy statements clerk will report the bill by title. under this bill are not affected by the bill, of the commission, if appropriate, to provide and will operate in accordance with applica- The legislative clerk read as follows: an appropriate sentencing enhancement for ble state law. offenses involving influencing, assaulting, A bill (H.R. 2277) to provide for work au- The proposed legislation would add section thorization for nonimmigrant spouses of resisting, impeding, retaliating against, or 104(k) to CERCLA. New sections 104(k)(3)(A) treaty traders and treaty investors. and (B) authorize the President to make threatening a Federal judge, magistrate grants ‘‘for capitalization of revolving loan judge, or any other official described in sec- There being no objection, the Senate proceeded to consider the bill. funds’’ for ‘‘the remediation of brownfield tion 111 or 115 of title 18, United States Code. sites.’’ Under section 104(k)(9)(B)(iii), each Mr. REID. I ask unanimous consent (b) FACTORS FOR CONSIDERATION.—In car- recipient of a capitalization grant must pro- the bill be read the third time and rying out this section, the United States vide a non-federal matching share of at least passed, the motion to reconsider be Sentencing Commission shall consider, with 20 percent (unless the Administrator makes respect to each offense described in sub- laid on the table with no intervening a hardship determination). Section 104(k)(12), ‘‘Funding,’’ authorizes the appro- section (a)— action or debate, and any statements priation of $200 million for each of fiscal (1) any expression of congressional intent be printed in the RECORD. years 2002 through 2006 to carry out section regarding the appropriate penalties for the The PRESIDENT pro tempore. With- 104(k). offense; out objection, the several requests are Under the Davis-Bacon Act, 40 U.S.C. 276a (2) the range of conduct covered by the of- granted. et seq., most public building or public works fense; The bill (H.R. 2277) was read the third construction contracts entered into by the (3) the existing sentences for the offense; time and passed. United States must stipulate that the wages (4) the extent to which sentencing en- f paid to laborers and mechanics will be com- hancements within the Federal sentencing parable to the prevailing wages for similar guidelines and the authority of the court to SMALL BUSINESS LIABILITY RE- work in the locality where the contract is to impose a sentence in excess of the applicable LIEF AND BROWNFIELDS REVI- be performed. The Davis-Bacon Act does not guideline range are adequate to ensure pun- TALIZATION ACT apply by its own terms to contracts to which ishment at or near the maximum penalty for the United States is not a party, including the most egregious conduct covered by the Mr. REID. I ask unanimous consent contracts awarded by recipients of federal offense; the Senate proceed to H.R. 2869, just grants in performance of a grant project. (5) the extent to which the Federal sen- received from the House, now at the The proposed legislation is silent regarding tencing guideline sentences for the offense desk. the applicability of the Davis-Bacon Act to have been constrained by statutory max- The PRESIDENT pro tempore. The BRLFs. However, an existing provision of imum penalties; clerk will state the title of the House CERCLA section 104(g), extends the reach of (6) the extent to which the Federal sen- the Davis-Bacon Act beyond direct federal tencing guidelines for the offense adequately bill. procurement. That section applies Davis- achieve the purposes of sentencing as set The legislate clerk read as follows: Bacon Act prevailing wage rate requirements forth in section 3553(a)(2) of title 18, United A bill (H.R. 2869) to provide certain relief to contracts ‘‘for construction, repair or al- States Code; for small business from liability under the teration work funded in whole or in part (7) the relationship of the Federal sen- Comprehensive Environmental Response, under this section.’’ Since the new BRLF tencing guidelines for the offense to the Fed- Compensation and Liability Act of 1980, and provision would fall within section 104, it eral sentencing guidelines for other offenses to amend such Act to promote the cleanup would be subject to the Davis-Bacon require- of comparable seriousness; and and reuse of brownfields, to provide financial ments of section 104(g). However, CERCLA (8) any other factors that the Commission assistance for brownfields revitalization, and does not define the precise meaning or scope considers to be appropriate. to enhance State response programs. of the quoted from section 104(g).

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00291 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S14064 CONGRESSIONAL RECORD — SENATE December 20, 2001 If a statute does not address the precise for three groups: contiguous property [Matter to be added is printed in question at issue, an agency may adopt an owners, prospective purchasers, and in- italic.] interpretation that is reasonable and con- nocent landowners. Lastly, the bill H.R. 1892 sistent with the statute and legislative his- tory. Since CERCLA does not address the outlines the parameters by which EPA Be it enacted by the Senate and House of Rep- precise question at issue here, EPA may may re-enter a site to protect human resentatives of the United States of America in Congress assembled, adopt a reasonable interpretation, which health and the environment. would be entitled to deference. Chevron, USA We also have fulfilled another man- SECTION 1. SHORT TITLE. v. NRDC, 467 U.S. 837 (1984). If H.R. 2869 is en- date today. Earlier this year, the Small This Act may be cited as the ‘‘Family Sponsor Immigration Act of 2001’’. acted, one reasonable interpretation of Business Liability Protection Act SEC. 2. SUBSTITUTION OF ALTERNATIVE SPON- CERCLA, as amended, would be that con- passed the House of Representatives tracts under every loan made from a BRLF SOR IF ORIGINAL SPONSOR HAS 419–0; today, the Senate followed suit. DIED. that received a capitalization grant pursuant (a) PERMITTING SUBSTITUTION OF ALTER- to section 104(k) would be subject to Davis- This legislation is a victory for small NATIVE CLOSE FAMILY SPONSOR IN CASE OF Bacon. Under this interpretation, Davis- businesses, on which the foundation of our nation’s economy stands. The DEATH OF PETITIONER.— Bacon would apply to loans made entirely (1) RECOGNITION OF ALTERNATIVE SPONSOR.— from payments of principal and interest. The Small Business Liability Protection Section 213A(f)(5) of the Immigration and phrase in section 104(g), ‘‘funded in whole or Act provides Superfund liability relief Nationality Act (8 U.S.C. 1183a(f)(5)) is in part under this section’’ could be con- for small businesses and others who amended to read as follows: strued to encompass every contract indi- disposed of, or arranged disposal of, ‘‘(5) NON-PETITIONING CASES.—Such term rectly supported by federal grant funds. This small amounts of hazardous waste. The also includes an individual who does not arguably would include all contracts award- meet the requirement of paragraph (1)(D) but ed by a BRLF, which might not exist but for legislation also allows expedited settle- ments for a lesser amount if a business who— the EPA capitalization grant(s). ‘‘(A) accepts joint and several liability However, it would be at least equally rea- can show financial hardship. with a petitioning sponsor under paragraph sonable to interpret CERCLA, as amended by There are many who share in this (2) or relative of an employment-based immi- H.R. 2869, to require that only contracts victory. It was truly a bipartisan and grant under paragraph (4) and who dem- under BRLF loans made with the federal bicameral effort. In particular, I would onstrates (as provided under paragraph (6)) grant funds and the associated 20 percent like to recognize the efforts of Sen- the means to maintain an annual income matching funds are subject to Davis-Bacon. ators SMITH, CHAFEE, BAUCUS and equal to at least 125 percent of the Federal The phrase ‘‘funded in whole or in part under poverty line; or this section’’ may reasonably be construed BOXER. I also thank all the Leadership offices, on both sides and in both ‘‘(B) is a spouse, parent, mother-in-law, fa- to mean ‘‘receiving funds authorized under ther-in-law, sibling, child (if at least 18 years this section.’’ The funds authorized under Chambers, for their dedication to the of age), son, daughter, son-in-law, daughter- section 104 for BRLFs are the $200 million passage of H.R. 2869. in-law, sister-in-law, brother-in-law, grand- authorized under section 104(k)(12). The I am very proud of this legislation. I parent, or grandchild of a sponsored alien or phrase would also include the 20 percent am pleased to have played an integral a legal guardian of a sponsored alien, meets matching funds because when a grant stat- role in these efforts to encourage de- the requirements of paragraph (1) (other ute requires a non-federal match every ex- than subparagraph (D)), and executes an affi- penditure of grant funds includes the federal velopment of our urban cores, reduce development demands in greenfields, davit of support with respect to such alien in and non-federal share. a case in which— Under H.R. 2869, as passed by the House, and promote our economic base by sup- ‘‘(i) the individual petitioning under sec- the Agency would have the discretion to de- porting our small businesses. This new tion 204 for the classification of such alien cide whether to apply Davis-Bacon to con- year’s resolution has been many years died after the approval of such petition; and tracts under BRLF loans that are made sole- in the making. I am gratified that our ‘‘(ii) the Attorney General has determined ly with funds other than the federal grant communities will reap the rewards of for humanitarian reasons that revocation of and match amount. However, any loan that such petition under section 205 would be in- includes both grant funds and loan payments further tools to redevelop brownfields appropriate.’’. would be subject to Davis-Bacon, because it and sustain small businesses in 2002 (2) CONFORMING AMENDMENT PERMITTING would be funded in part with funds author- and beyond. SUBSTITUTION.—Section 212(a)(4)(C)(ii) of ized under section 104(k). See 40 CFR 31.21(f). Mr. REID. Mr. President, I ask unan- If you have any questions about this mat- such Act (8 U.S.C. 1182(a)(4)(C)(ii)) is amend- imous consent the bill be read the third ed by striking ‘‘(including any additional ter, please contact me or John Valeri of this time and passed, the motion to recon- office. sponsor required under section 213A(f))’’ and sider be laid upon the table, and any inserting ‘‘(and any additional sponsor re- Mr. JEFFORDS. Mr. President, statements relating thereto be printed quired under section 213A(f) or any alter- today, we take a historic step toward in the RECORD with no intervening ac- native sponsor permitted under paragraph bolstering economic development. The tion or debate. (5)(B) of such section)’’. Small Business Liability Relief and The PRESIDENT pro tempore. With- (3) ADDITIONAL CONFORMING AMENDMENTS.— Brownfields Revitalization Act, H.R. out objection, it is so ordered. The sev- Section 213A(f) of such Act (8 U.S.C. 1183a(f)) is amended, in each of paragraphs (2) and 2869, will protect our small businesses. eral requests are granted. This bill will revitalize once abandoned (4)(B)(ii), by striking ‘‘(5).’’ and inserting The bill (H.R. 2869) was read the third ‘‘(5)(A).’’. factory sites. This bill will give new time and passed. (b) EFFECTIVE DATE.—The amendments life to our aging industrial sites. This f made by subsection (a) shall apply with re- bill will provide hope and prosperity to spect to deaths occurring before, on, or after locations long ago forgotten. FAMILY SPONSOR IMMIGRATION the date of the enactment of this Act, except Earlier this year, the U.S. Senate de- ACT OF 2001 that, in the case of a death occurring before such date, such amendments shall apply only clared a mandate in the form of a 99–0 Mr. REID. Mr. President, I ask unan- vote endorsing the Brownfields Revi- if— imous consent the Senate proceed to (1) the sponsored alien— talization and Environmental Restora- Calendar No. 289, H.R. 1892. (A) requests the Attorney General to rein- tion Act, S. 350. Unanimously, the Sen- The PRESIDENT pro tempore. The state the classification petition that was ate pledged its commitment to the re- clerk will report the bill by title. filed with respect to the alien by the de- development of potentially contami- The legislative clerk read as follows: ceased and approved under section 204 of the nated industrial sites. As Chairman of Immigration and Nationality Act (8 U.S.C. A bill (H.R. 1892) to amend the Immigra- the Senate Environment and Public 1154) before such death; and tion and Nationality Act to provide for the (B) demonstrates that he or she is able to Works Committee, I have taken that acceptance of an affidavit of support from mandate seriously. I am pleased that, satisfy the requirement of section another eligible sponsor if the original spon- 212(a)(4)(C)(ii) of such Act (8 U.S.C. today, the House followed suit. sor has died and the Attorney General has 1182(a)(4)(C)(ii)) by reason of such amend- The Brownfields Revitalization and determined for humanitarian reasons that ments; and Environmental Restoration Act au- the original sponsor’s classification petition (2) the Attorney General reinstates such thorizes $250 million a year over the should not be revoked. petition after making the determination de- next five years for assessment and There being no objection, the Senate scribed in section 213A(f)(5)(B)(ii) of such Act cleanup grants, including petroleum proceeded to consider the bill, which (as amended by subsection (a)(1) of this Act). sites, and State program enhancement. had been reported from the Committee Mr. REID. Mr. President, I ask unan- The bill would provide liability relief on the Judiciary, with an amendment. imous consent that the committee

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00292 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S14065 amendment be agreed to, the bill be The legislative clerk read as follows: TITLE IV—VIOLENCE AGAINST WOMEN read a third time and passed, the mo- A bill (H.R. 2215) to authorize the appro- Sec. 401. Short title. tion to reconsider be laid on the table priations for the Department of Justice for Sec. 402. Establishment of Violence Against fiscal year 2002, and for other purposes. Women Office. with no intervening action or debate, Sec. 403. Jurisdiction. and that any statements pertaining to There being no objection, the Senate Sec. 404. Director of Violence Against Women this matter be printed in the RECORD. proceeded to consider the bill Appro- Office. The PRESIDENT pro tempore. With- priations for the Department of Justice Sec. 405. Regulatory authorization. out objection, it is so ordered. for fiscal year 2002, and for other pur- Sec. 406. Office staff. Sec. 407. Authorization of appropriations. The committee amendment was poses and which had been reported agreed to. from the Committee on the Judiciary, TITLE I—AUTHORIZATION OF APPROPRIATIONS FOR FISCAL YEAR 2002 The bill (H.R. 1892), as amended, was with an amendment to strike all after SEC. 101. SPECIFIC SUMS AUTHORIZED TO BE AP- passed. the enacting clause and insert in lieu PROPRIATED. f thereof the following: There are authorized to be appropriated for SECTION 1. SHORT TITLE; TABLE OF CONTENTS. fiscal year 2002, to carry out the activities of the NURSE REINVESTMENT ACT (a) SHORT TITLE.—This Act may be cited as Department of Justice (including any bureau, Mr. REID. Mr. President, I ask unan- the ‘‘21st Century Department of Justice Appro- office, board, division, commission, subdivision, imous consent that the Senate proceed priations Authorization Act’’. unit, or other component thereof), the following to the consideration of S. 1864, intro- (b) TABLE OF CONTENTS.—The table of con- sums: tents of this Act is as follows: (1) GENERAL ADMINISTRATION.—For General duced earlier today by Senators MIKUL- Sec. 1. Short title; table of contents. Administration: $93,433,000. SKI, HUTCHINSON, KERRY, and others. (2) ADMINISTRATIVE REVIEW AND APPEALS.— The PRESIDENT pro tempore. The TITLE I—AUTHORIZATION OF For Administrative Review and Appeals: clerk will report the bill by title. APPROPRIATIONS FOR FISCAL YEAR 2002 $178,499,000 for administration of pardon and The legislative clerk read as follows: Sec. 101. Specific sums authorized to be appro- clemency petitions and for immigration-related priated. A bill (S. 1864) to amend the Public Health activities. Sec. 102. Appointment of additional Assistant (3) OFFICE OF INSPECTOR GENERAL.—For the Service Act establishing a nurse corps and United States Attorneys; reduc- Office of Inspector General: $55,000,000, which recruitment and retention strategy to ad- tion of certain litigation positions. shall include for each such fiscal year, not to dress the nurse shortage, and for other pur- Sec. 103. Authorization for additional Assistant exceed $10,000 to meet unforeseen emergencies of poses. United States Attorneys for a confidential character. There being no objection, the Senate project safe neighborhoods. (4) GENERAL LEGAL ACTIVITIES.—For General proceeded to consider the bill. TITLE II—PERMANENT ENABLING Legal Activities: $566,822,000, which shall in- Mr. REID. Mr. President, I ask unan- PROVISIONS clude for each such fiscal year— imous consent that the bill be read a Sec. 201. Permanent authority. (A) not less than $4,000,000 for the investiga- third time and passed, the motion to Sec. 202. Permanent authority relating to en- tion and prosecution of denaturalization and forcement of laws. deportation cases involving alleged Nazi war reconsider be laid on the table, and criminals; and that any statements on this matter be Sec. 203. Notifications and reports to be pro- vided simultaneously to commit- (B) not to exceed $20,000 to meet unforeseen printed in the RECORD. tees. emergencies of a confidential character. The PRESIDENT pro tempore. With- Sec. 204. Miscellaneous uses of funds; technical (5) ANTITRUST DIVISION.—For the Antitrust out objection, it is so ordered. amendments. Division: $140,973,000. The bill (S. 1864) was passed. Sec. 205. Technical and miscellaneous amend- (6) UNITED STATES ATTORNEYS.—For United States Attorneys: $1,346,289,000, which shall in- (The text of S. 1864 is printed in to- ments to Department of Justice authorities; authority to transfer clude not less than $10,000,000 for the investiga- day’s RECORD under ‘‘Statements on In- tion and prosecution of intellectual property troduced Bills and Joint Resolutions.’’) property of marginal value; rec- ordkeeping; protection of the At- crimes, including software counterfeiting crimes f torney General. and crimes identified in the No Electronic Theft (NET) Act (Public Law 105–147): provided, that GENERAL SHELTON CONGRES- Sec. 206. Oversight; waste, fraud, and abuse of appropriations. such amounts in the appropriations account SIONAL GOLD MEDAL ACT Sec. 207. Enforcement of Federal criminal laws ‘‘General Legal Services’’ as may be expended Mr. REID. Mr. President, I ask unan- by Attorney General. for such investigations or prosecutions shall imous consent that the Senate proceed Sec. 208. Counterterrorism fund. count towards this minimum as though ex- Sec. 209. Strengthening law enforcement in pended from this appropriations account. to the immediate consideration of H.R. (7) FEDERAL BUREAU OF INVESTIGATION.—For 2751. United States territories, common- wealths, and possessions. the Federal Bureau of Investigation: The PRESIDENT pro tempore. The Sec. 210. Additional authorities of the Attorney $3,507,109,000, which shall include for each such clerk will report the bill by title. General. fiscal year— The legislative clerk read as follows: (A) not to exceed $1,250,000 for construction, TITLE III—MISCELLANEOUS to remain available until expended; and A bill (H.R. 2751) to authorize the Presi- Sec. 301. Repealers. (B) not to exceed $70,000 to meet unforeseen dent to award a Gold Medal on behalf of the Sec. 302. Technical amendments to title 18 of emergencies of a confidential character. Congress to General Henry H. Shelton. the United States Code. (8) UNITED STATES MARSHALS SERVICE.—For There being no objection, the Senate Sec. 303. Required submission of proposed au- the United States Marshals Service: $626,439,000, proceeded to consider the bill. thorization of appropriations for which shall include for each such fiscal year Mr. REID. Mr. President, I ask unan- the Department of Justice for fis- not to exceed $6,621,000 for construction, to re- cal year 2003. imous consent that the bill be read main available until expended. Sec. 304. Study of untested rape examination (9) FEDERAL PRISON SYSTEM.—For the Federal three times, passed, and the motion to kits. Prison System, including the National Institute reconsider be laid on the table with no Sec. 305. Report on DCS 1000 (‘‘carnivore’’). of Corrections: $4,662,710,000. intervening action or debate, and that Sec. 306. Study of allocation of litigating attor- (10) FEDERAL PRISONER DETENTION.—For the any statements relating to the bill be neys. support of United States prisoners in non-Fed- printed in the RECORD. Sec. 307. Use of truth-in-sentencing and violent eral institutions, as authorized by section The PRESIDENT pro tempore. With- offender incarceration grants. 4013(a) of title 18 of the United States Code: Sec. 308. Authority of the Department of Justice out objection, it is so ordered. $724,682,000, to remain available until expended. Inspector General. (11) DRUG ENFORCEMENT ADMINISTRATION.— The bill (H.R. 2751) was passed. Sec. 309. Report on Inspector General and Dep- For the Drug Enforcement Administration: f uty Inspector General for Federal $1,480,929,000, which shall include not to exceed Bureau of Investigation. $70,000 to meet unforeseen emergencies of a con- 21ST CENTURY DEPARTMENT OF Sec. 310. Use of residential substance abuse fidential character. JUSTICE AUTHORIZATION ACT treatment grants to provide for (12) IMMIGRATION AND NATURALIZATION SERV- Mr. REID. Mr. President, I ask unan- services during and after incar- ICE.—For the Immigration and Naturalization imous consent the Senate proceed to ceration. Service: $3,516,411,000, which shall include— Sec. 311. Report on threats and assaults against (A) not to exceed $2,737,341,000 for salaries the immediate consideration of Cal- Federal law enforcement officers, and expenses of enforcement and border affairs endar No. 206, H.R. 2215. United States judges, United (i.e., the Border Patrol, deportation, intel- The PRESIDENT pro tempore. The States officials and their families. ligence, investigations, and inspection programs, clerk will report the bill by title. Sec. 312. Additional Federal judgeships. and the detention program);

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00293 Fmt 0624 Sfmt 6333 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S14066 CONGRESSIONAL RECORD — SENATE December 20, 2001 (B) not to exceed $650,660,000 for salaries and SEC. 103. AUTHORIZATION FOR ADDITIONAL AS- ‘‘(G) In accordance with procedures estab- expenses of citizenship and benefits (i.e., pro- SISTANT UNITED STATES ATTOR- lished and rules issued by the Attorney Gen- grams not included under subparagraph (A)); NEYS FOR PROJECT SAFE NEIGH- eral— BORHOODS. (C) for each such fiscal year, not to exceed ‘‘(i) attendance at meetings and seminars; (a) IN GENERAL.—The Attorney General shall ‘‘(ii) conferences and training; and $128,410,000 for construction, to remain avail- establish a program for each United States At- able until expended; and ‘‘(iii) advances of public moneys under section torney to provide for coordination with State 3324 of title 31: Provided, That travel advances (D) not to exceed $50,000 to meet unforeseen and local law enforcement officials in the identi- emergencies of a confidential character. of such moneys to law enforcement personnel fication and prosecution of violations of Federal engaged in undercover activity shall be consid- (13) FEES AND EXPENSES OF WITNESSES.—For firearms laws including school gun violence and ered to be public money for purposes of section Fees and Expenses of Witnesses: $156,145,000 to juvenile gun offenses. 3527 of title 31. remain available until expended, which shall in- (b) AUTHORIZATION FOR HIRING 94 ADDITIONAL ‘‘(H) Contracting with individuals for per- clude for each such fiscal year not to exceed ASSISTANT UNITED STATES ATTORNEYS.—There sonal services abroad, except that such individ- $6,000,000 for construction of protected witness are authorized to be appropriated to carry out uals shall not be regarded as employees of the safesites. this section $9,000,000 for fiscal year 2002 to hire United States for the purpose of any law admin- (14) INTERAGENCY CRIME AND DRUG ENFORCE- an additional Assistant United States Attorney istered by the Office of Personnel Management. MENT.—For Interagency Crime and Drug En- in each United States Attorney Office. ‘‘(I) Payment of interpreters and translators forcement: $338,106,000, for expenses not other- TITLE II—PERMANENT ENABLING who are not citizens of the United States, in ac- wise provided for, for the investigation and PROVISIONS cordance with procedures established and rules prosecution of persons involved in organized SEC. 201. PERMANENT AUTHORITY. issued by the Attorney General. crime drug trafficking, except that any funds (a) IN GENERAL.—Chapter 31 of title 28, ‘‘(J) Expenses or allowances for uniforms as obligated from appropriations authorized by this United States Code, is amended by adding at the authorized by section 5901 of title 5, but without paragraph may be used under authorities avail- end the following: regard to the general purchase price limitation able to the organizations reimbursed from such ‘‘§ 530C. Authority to use available funds for the then-current fiscal year. funds. ‘‘(K) Expenses of— ‘‘(a) IN GENERAL.—Except to the extent pro- (15) FOREIGN CLAIMS SETTLEMENT COMMIS- ‘‘(i) primary and secondary schooling for de- vided otherwise by law, the activities of the De- SION.—For the Foreign Claims Settlement Com- pendents of personnel stationed outside the con- partment of Justice (including any bureau, of- mission: $1,130,000. tinental United States at cost not in excess of fice, board, division, commission, subdivision, (16) COMMUNITY RELATIONS SERVICE.—For the those authorized by the Department of Defense unit, or other component thereof) may, in the Community Relations Service: $9,269,000. for the same area, when it is determined by the reasonable discretion of the Attorney General, Attorney General that schools available in the (17) ASSETS FORFEITURE FUND.—For the Assets be carried out through any means, including— locality are unable to provide adequately for the Forfeiture Fund: $22,949,000 for expenses au- ‘‘(1) through the Department’s own personnel, education of such dependents; and thorized by section 524 of title 28, United States acting within, from, or through the Department ‘‘(ii) transportation of those dependents be- Code. itself; (18) UNITED STATES PAROLE COMMISSION.—For ‘‘(2) by sending or receiving details of per- tween their place of residence and schools serv- the United States Parole Commission: sonnel to other branches or agencies of the Fed- ing the area which those dependents would nor- $10,862,000. eral Government, on a reimbursable, partially- mally attend when the Attorney General, under such regulations as he may prescribe, determines (19) FEDERAL DETENTION TRUSTEE.—For the reimbursable, or nonreimbursable basis; that such schools are not accessible by public necessary expenses of the Federal Detention ‘‘(3) through reimbursable agreements with means of transportation. Trustee: $1,718,000. other Federal agencies for work, materials, or ‘‘(L) Payment of rewards (i.e., payments pur- (20) JOINT AUTOMATED BOOKING SYSTEM.—For equipment; ‘‘(4) through contracts, grants, or cooperative suant to public advertisements for assistance to expenses necessary for the operation of the Joint the Department of Justice), in accordance with Automated Booking System: $15,957,000. agreements with non-Federal parties; and ‘‘(5) as provided in subsection (b), in section procedures and regulations established or issued (21) NARROWBAND COMMUNICATIONS.—For the 524, and in any other provision of law con- by the Attorney General: provided that— costs of conversion to narrowband communica- sistent herewith, including, without limitation, ‘‘(i) no such reward shall exceed $2,000,000 tions, including the cost for operation and section 102(b) of Public Law 102–395 (106 Stat. (unless a statute should authorize a higher maintenance of Land Mobile Radio legacy sys- 1838), as incorporated by section 815(d) of Public amount); tems: $104,606,000. Law 104–132 (110 Stat. 1315). ‘‘(ii) no such reward of $250,000 or more may (22) RADIATION EXPOSURE COMPENSATION.— ‘‘(b) PERMITTED USES.— be made or offered without the personal ap- For administrative expenses in accordance with ‘‘(1) GENERAL PERMITTED USES.—Funds avail- proval of either the Attorney General or the the Radiation Exposure Compensation Act: such able to the Attorney General (i.e., all funds President; sums as necessary. available to carry out the activities described in ‘‘(iii) the Attorney General shall give written (23) COUNTERTERRORISM FUND.—For the subsection (a)) may be used, without limitation, notice to the Chairmen and ranking minority Counterterrorism Fund for necessary expenses, for the following: members of the Committees on Appropriations as determined by the Attorney General: ‘‘(A) The purchase, lease, maintenance, and and the Judiciary of the Senate and of the $4,989,000. operation of passenger motor vehicles, or police- House of Representatives not later than 30 days (24) OFFICE OF JUSTICE PROGRAMS.—For ad- type motor vehicles for law enforcement pur- after the approval of a reward under clause (ii); ministrative expenses not otherwise provided poses, without regard to general purchase price ‘‘(iv) any executive agency or military depart- for, of the Office of Justice Programs: limitation for the then-current fiscal year. ment (as defined, respectively, in sections 105 $116,369,000. ‘‘(B) The purchase of insurance for motor ve- and 102 of title 5) may provide the Attorney hicles, boats, and aircraft operated in official General with funds for the payment of rewards; SEC. 102. APPOINTMENT OF ADDITIONAL ASSIST- and ANT UNITED STATES ATTORNEYS; Government business in foreign countries. REDUCTION OF CERTAIN LITIGA- ‘‘(C) Services of experts and consultants, in- ‘‘(v) neither the failure of the Attorney Gen- TION POSITIONS. cluding private counsel, as authorized by sec- eral to authorize a payment nor the amount au- tion 3109 of title 5, and at rates of pay for indi- thorized shall be subject to judicial review. (a) APPOINTMENTS.—Not later than September ‘‘(2) SPECIFIC PERMITTED USES.— 30, 2003, the Attorney General may exercise au- viduals not to exceed the maximum daily rate ‘‘(A) AIRCRAFT AND BOATS.—Funds available thority under section 542 of title 28, United payable from time to time under section 5332 of to the Attorney General for United States Attor- States Code, to appoint 200 assistant United title 5. ‘‘(D) Official reception and representation ex- neys, for the Federal Bureau of Investigation, States attorneys in addition to the number of as- penses (i.e., official expenses of a social nature for the United States Marshals Service, for the sistant United States attorneys serving on the intended in whole or in predominant part to Drug Enforcement Administration, and for the date of the enactment of this Act. promote goodwill toward the Department or its Immigration and Naturalization Service may be (b) SELECTION OF APPOINTEES.—Individuals missions, but excluding expenses of public tours used for the purchase, lease, maintenance, and first appointed under subsection (a) may be ap- of facilities of the Department of Justice), in ac- operation of aircraft and boats, for law enforce- pointed from among attorneys who are incum- cordance with distributions and procedures es- ment purposes. bents of 200 full-time litigation positions in divi- tablished, and rules issued, by the Attorney ‘‘(B) PURCHASE OF AMMUNITION AND FIRE- sions of the Department of Justice and whose of- General, and expenses of public tours of facili- ARMS; FIREARMS COMPETITIONS.—Funds avail- ficial duty station is at the seat of Government. ties of the Department of Justice. able to the Attorney General for United States (c) TERMINATION OF POSITIONS.—Each of the ‘‘(E) Unforeseen emergencies of a confidential Attorneys, for the Federal Bureau of Investiga- 200 litigation positions that become vacant by character, to be expended under the direction of tion, for the United States Marshals Service, for reason of an appointment made in accordance the Attorney General and accounted for solely the Drug Enforcement Administration, for the with subsections (a) and (b) shall be terminated on the certificate of the Attorney General. Federal Prison System, for the Office of the In- at the time the vacancy arises. ‘‘(F) Miscellaneous and emergency expenses spector General, and for the Immigration and (d) AUTHORIZATION OF APPROPRIATIONS.— authorized or approved by the Attorney Gen- Naturalization Service may be used for— There are authorized to be appropriated such eral, the Deputy Attorney General, the Asso- ‘‘(i) the purchase of ammunition and firearms; sums as may be necessary to carry out this sec- ciate Attorney General, or the Assistant Attor- and tion. ney General for Administration. ‘‘(ii) participation in firearms competitions.

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00294 Fmt 0624 Sfmt 6333 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S14067

‘‘(C) CONSTRUCTION.—Funds available to the of detention policy setting and operations for of, or inferior to those of, that jurisdiction) es- Attorney General for construction may be used the Department of Justice. tablished by a final decision of any court of, or for expenses of planning, designing, acquiring, ‘‘(c) RELATED PROVISIONS.— superior to those of, that jurisdiction, respecting building, constructing, activating, renovating, ‘‘(1) LIMITATION OF COMPENSATION OF INDI- the interpretation, construction, or application converting, expanding, extending, remodeling, VIDUALS EMPLOYED AS ATTORNEYS.—No funds of the Constitution, any statute, rule, regula- equipping, repairing, or maintaining buildings available to the Attorney General may be used tion, program, policy, or other law whose en- or facilities, including the expenses of acquisi- to pay compensation for services provided by an forcement, application, or administration is tion of sites therefor, and all necessary expenses individual employed as an attorney (other than within the responsibility of the Attorney Gen- incident or related thereto; but the foregoing an individual employed to provide services as a eral or such officer; shall not be construed to mean that funds gen- foreign attorney in special cases) unless such in- ‘‘(B) determines— erally available for salaries and expenses are dividual is duly licensed and authorized to prac- ‘‘(i) to contest affirmatively, in any judicial, not also available for certain incidental or tice as an attorney under the law of a State, a administrative, or other proceeding, the con- minor construction, activation, remodeling, territory of the United States, or the District of stitutionality of any provision of any Federal maintenance, and other related construction Columbia. statute, rule, regulation, program, policy, or costs. ‘‘(2) REIMBURSEMENTS PAID TO GOVERNMENTAL other law; or ‘‘(3) FEES AND EXPENSES OF WITNESSES.— ENTITIES.—Funds available to the Attorney Gen- ‘‘(ii) to refrain (on the grounds that the provi- Funds available to the Attorney General for fees eral that are paid as reimbursement to a govern- sion is unconstitutional) from defending or as- and expenses of witnesses may be used for— mental unit of the Department of Justice, to an- serting, in any judicial, administrative, or other ‘‘(A) expenses, mileage, compensation, protec- other Federal entity, or to a unit of State or proceeding, the constitutionality of any provi- tion, and per diem in lieu of subsistence, of wit- local government, may be used under authorities sion of any Federal statute, rule, regulation, nesses (including advances of public money) available to the unit or entity receiving such re- program, policy, or other law, or not to appeal and as authorized by section 1821 or other law, imbursement. or request review of any judicial, administra- except that no witness may be paid more than 1 ‘‘(d) FOREIGN REIMBURSEMENTS.—Whenever tive, or other determination adversely affecting attendance fee for any 1 calendar day; the Department of Justice or any component the constitutionality of any such provision; or ‘‘(B) fees and expenses of neutrals in alter- participates in a cooperative project to improve ‘‘(C) approves (other than in circumstances in native dispute resolution proceedings, where the law enforcement or national security operations which a report is submitted to the Joint Com- Department of Justice is a party; and or services with a friendly foreign country on a mittee on Taxation, pursuant to section 6405 of ‘‘(C) construction of protected witness cost-sharing basis, any reimbursements or con- the Internal Revenue Code of 1986) the settle- safesites. tributions received from that foreign country to ment or compromise (other than in bankruptcy) ‘‘(4) FEDERAL BUREAU OF INVESTIGATION.— meet its share of the project may be credited to of any claim, suit, or other action— Funds available to the Attorney General for the appropriate current appropriations accounts of ‘‘(i) against the United States (including any Federal Bureau of Investigation for the detec- the Department of Justice or any component. agency or instrumentality thereof) for a sum tion, investigation, and prosecution of crimes The amount of a reimbursement or contribution that exceeds, or is likely to exceed, $2,000,000, against the United States may be used for the credited shall be available only for payment of excluding prejudgment interest; or conduct of all its authorized activities. the share of the project expenses allocated to the ‘‘(ii) by the United States (including any ‘‘(5) IMMIGRATION AND NATURALIZATION SERV- participating foreign country. agency or instrumentality thereof) pursuant to ICE.—Funds available to the Attorney General ‘‘(e) RAILROAD POLICE TRAINING FEES.—The an agreement, consent decree, or order (or pur- for the Immigration and Naturalization Service Attorney General is authorized to establish and suant to any modification of an agreement, con- may be used for— collect a fee to defray the costs of railroad police sent decree, or order) that provides injunctive or ‘‘(A) acquisition of land as sites for enforce- officers participating in a Federal Bureau of In- other nonmonetary relief that exceeds, or is like- ment fences, and construction incident to such vestigation law enforcement training program ly to exceed, 3 years in duration: Provided, That fences; authorized by Public Law 106–110, and to credit for purposes of this clause, the term ‘‘injunctive ‘‘(B) cash advances to aliens for meals and such fees to the appropriation account ‘‘Federal or other nonmonetary relief’’ shall not be under- lodging en route; Bureau of Investigation, Salaries and Ex- stood to include the following, where the same ‘‘(C) refunds of maintenance bills, immigra- penses’’, to be available until expended for sala- are a matter of public record— tion fines, and other items properly returnable, ries and expenses incurred in providing such ‘‘(I) debarments, suspensions, or other exclu- except deposits of aliens who become public services. sions from Government contracts or grants; ‘‘(II) mere reporting requirements or agree- charges and deposits to secure payment of fines ‘‘(f) WARRANTY WORK.—In instances where ments (including sanctions for failure to report); and passage money; and the Attorney General determines that law en- ‘‘(III) requirements or agreements merely to ‘‘(D) expenses and allowances incurred in forcement-, security-, or mission-related consid- tracking lost persons, as required by public ex- comply with statutes or regulations; erations mitigate against obtaining maintenance ‘‘(IV) requirements or agreements to surrender igencies, in aid of State or local law enforcement or repair services from private sector entities for agencies. professional licenses or to cease the practice of equipment under warranty, the Attorney Gen- professions, occupations, or industries; ‘‘(6) FEDERAL PRISON SYSTEM.—Funds avail- eral is authorized to seek reimbursement from able to the Attorney General for the Federal ‘‘(V) any criminal sentence or any require- such entities for warranty work performed at ments or agreements to perform community serv- Prison System may be used for— Department of Justice facilities, and to credit ‘‘(A) inmate medical services and inmate legal ice, to serve probation, or to participate in su- any payment made for such work to any appro- pervised release from detention, confinement, or services, within the Federal prison system; priation charged therefor.’’. ‘‘(B) the purchase and exchange of farm prod- prison; or (b) CONFORMING AMENDMENT.—The table of ‘‘(VI) agreements to cooperate with the gov- ucts and livestock; sections of chapter 31 of title 28, United States ‘‘(C) the acquisition of land as provided in ernment in investigations or prosecutions Code, is amended by adding at the end the fol- (whether or not the agreement is a matter of section 4010 of title 18; and lowing: ‘‘(D) the construction of buildings and facili- public record). ‘‘(2) SUBMISSION OF REPORT TO THE CON- ties for penal and correctional institutions (in- ‘‘530C. Authority to use available funds.’’. GRESS.—For the purposes of paragraph (1), a re- cluding prison camps), by contract or force ac- SEC. 202. PERMANENT AUTHORITY RELATING TO port shall be considered to be submitted to the count, including the payment of United States ENFORCEMENT OF LAWS. Congress if the report is submitted to— prisoners for their work performed in any such (a) IN GENERAL.—Chapter 31 of title 28, ‘‘(A) the majority leader and minority leader construction; United States Code (as amended by section 201), is amended by adding at the end the following: of the Senate; except that no funds may be used to distribute ‘‘(B) the Speaker, majority leader, and minor- ‘‘§ 530D. Report on enforcement of laws or make available to a prisoner any commer- ity leader of the House of Representatives; cially published information or material that is ‘‘(a) REPORT.— ‘‘(C) the chairman and ranking minority mem- sexually explicit or features nudity. ‘‘(1) IN GENERAL.—The Attorney General shall ber of the Committee on the Judiciary of the ‘‘(7) DETENTION TRUSTEE.—Funds available to submit to the Congress a report of any instance House of Representatives and the chairman and the Attorney General for the Detention Trustee in which the Attorney General or any officer of ranking minority member of the Committee on may be used for all the activities of such Trustee the Department of Justice— the Judiciary of the Senate; and in the exercise of all power and functions au- ‘‘(A) establishes or implements a formal or in- ‘‘(D) the Senate Legal Counsel and the Gen- thorized by law relating to the detention of Fed- formal policy to refrain— eral Counsel of the House of Representatives. eral prisoners in non-Federal institutions or ‘‘(i) from enforcing, applying, or admin- ‘‘(b) DEADLINE.—A report shall be submitted— otherwise in the custody of the United States istering any provision of any Federal statute, ‘‘(1) under subsection (a)(1)(A), not later than Marshals Service and to the detention of aliens rule, regulation, program, policy, or other law 30 days after the establishment or implementa- in the custody of the Immigration and Natu- whose enforcement, application, or administra- tion of each policy; ralization Service, including the overseeing of tion is within the responsibility of the Attorney ‘‘(2) under subsection (a)(1)(B), within such construction of detention facilities or for hous- General or such officer on the grounds that time as will reasonably enable the House of Rep- ing related to such detention, the management such provision is unconstitutional; or resentatives and the Senate to take action, sepa- of funds appropriated to the Department for the ‘‘(ii) within any judicial jurisdiction of or rately or jointly, to intervene in timely fashion exercise of detention functions, and the direc- within the United States, from adhering to, en- in the proceeding, but in no event later than 30 tion of the United States Marshals Service and forcing, applying, or complying with, any days after the making of each determination; Immigration Service with respect to the exercise standing rule of decision (binding upon courts and

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00295 Fmt 0624 Sfmt 6333 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S14068 CONGRESSIONAL RECORD — SENATE December 20, 2001 ‘‘(3) under subsection (a)(1)(C), not later than (3) Not later than 30 days after the date of the or indirectly, to provide any security enhance- 30 days after the conclusion of each fiscal-year enactment of this Act, the President shall advise ments or any equipment to any non-govern- quarter, with respect to all approvals occurring the head of each executive agency or military mental entity that is not engaged in law en- in such quarter. department (as defined, respectively, in sections forcement or law enforcement support, criminal ‘‘(c) CONTENTS.—A report required by sub- 105 and 102 of title 5, United States Code) of the or juvenile justice, or delinquency prevention.’’; section (a) shall— enactment of this section. and ‘‘(1) specify the date of the establishment or (4)(A) Not later than 90 days after the date of (5) in section 511 by striking ‘‘503’’ and insert- implementation of the policy described in sub- the enactment of this Act, the Attorney General ing ‘‘501(b)’’. section (a)(1)(A), of the making of the deter- (and, as applicable, the President, and the head (b) ATTORNEYS SPECIALLY RETAINED BY THE mination described in subsection (a)(1)(B), or of of any executive agency or military department ATTORNEY GENERAL.—The 3d sentence of section each approval described in subsection (a)(1)(C); described in subsection (e) of section 530D of 515(b) of title 28, United States Code, is amended ‘‘(2) include a complete and detailed statement title 28, United States Code, as added by sub- by striking ‘‘at not more than $12,000’’. of the relevant issues and background (includ- section (a)) shall submit to Congress a report (in SEC. 205. TECHNICAL AND MISCELLANEOUS ing a complete and detailed statement of the accordance with subsections (a), (c), and (e) of AMENDMENTS TO DEPARTMENT OF reasons for the policy or determination, and the such section) on— JUSTICE AUTHORITIES; AUTHORITY identity of the officer responsible for estab- (i) all policies of which the Attorney General TO TRANSFER PROPERTY OF MAR- lishing or implementing such policy, making and applicable official are aware described in GINAL VALUE; RECORDKEEPING; such determination, or approving such settle- subsection (a)(1)(A) of such section that were es- PROTECTION OF THE ATTORNEY ment or compromise), except that— tablished or implemented before the date of the GENERAL. ‘‘(A) such details may be omitted as may be enactment of this Act and were in effect on such (a) Section 524 of title 28, United States Code, absolutely necessary to prevent improper disclo- date; and is amended— sure of national-security- or classified informa- (ii) all determinations of which the Attorney (1) in subsection (a) by inserting ‘‘to the At- tion, of any information subject to the delibera- General and applicable official are aware de- torney General’’ after ‘‘available’’; tive-process-, executive-, attorney-work-product- scribed in subsection (a)(1)(B) of such section (2) in subsection (c)(1)— (A) by striking the semicolon at the end of the , or attorney-client privileges, or of any infor- that were made before the date of the enactment 1st subparagraph (I) and inserting a period; mation the disclosure of which is prohibited by of this Act and were in effect on such date. (B) If a determination described in subpara- (B) by striking the 2d subparagraph (I); section 6103 of the Internal Revenue Code of (C) by striking ‘‘(A)(iv), (B), (F), (G), and 1986, if the fact of each such omission (and the graph (A)(ii) relates to any judicial, administra- tive, or other proceeding that is pending in the (H)’’ in the first sentence following the second precise ground or grounds therefor) is clearly subparagraph (I) and inserting ‘‘(B), (F), and noted in the statement: Provided, That this sub- 90-day period beginning on the date of the en- actment of this Act, with respect to any such de- (G)’’; and paragraph shall not be construed to deny to the (D) by striking ‘‘fund’’ in the 3d sentence fol- Congress (including any House, Committee, or termination, then the report required by this paragraph shall be submitted within such time lowing the 2d subparagraph (I) and inserting agency thereof) any such omitted details (or re- ‘‘Fund’’; lated information) that it lawfully may seek, as will reasonably enable the House of Rep- resentatives and the Senate to take action, sepa- (3) in subsection (c)(2)— subsequent to the submission of the report; and (A) by inserting before the period in the last ‘‘(B) the requirements of this paragraph shall rately or jointly, to intervene in timely fashion in the proceeding, but not later than 30 days sentence ‘‘, without both the personal approval be deemed satisfied— of the Attorney General and written notice ‘‘(i) in the case of an approval described in after the date of the enactment of this Act. within 30 days thereof to the Chairmen and subsection (a)(1)(C)(i), if an unredacted copy of (5) Section 101 of Public Law 106–57 (113 Stat. ranking minority members of the Committees on the entire settlement agreement and consent de- 414) is amended by striking subsection (b). Appropriations and the Judiciary of the Senate cree or order (if any) is provided, along with a SEC. 203. NOTIFICATIONS AND REPORTS TO BE and of the House of Representatives’’; statement indicating the legal and factual basis PROVIDED SIMULTANEOUSLY TO COMMITTEES. (B) by striking ‘‘for information’’ each place it or bases for the settlement or compromise (if not If the Attorney General or any officer of the appears; and apparent on the face of documents provided); Department of Justice (including any bureau, (C) by striking ‘‘$250,000’’ the 2d and 3d places and office, board, division, commission, subdivision, it appears and inserting ‘‘$500,000’’; ‘‘(ii) in the case of an approval described in unit, or other component thereof) is required by (4) in subsection (c)(3) by striking ‘‘(F)’’ and subsection (a)(1)(C)(ii), if an unredacted copy of any Act (which shall be understood to include inserting ‘‘(G)’’; the entire settlement agreement and consent de- any request or direction contained in any report (5) in subsection (c)(5) by striking ‘‘Fund cree or order (if any) is provided, along with a of a committee of the Congress relating to an ap- which’’ and inserting ‘‘Fund, that’’; statement indicating the injunctive or other propriations Act or in any statement of man- (6) in subsection (c)(8)(A), by striking nonmonetary relief (if not apparent on the face agers accompanying any conference report ‘‘(A)(iv), (B), (F), (G), and (H)’’ and inserting of documents provided); and agreed to by the Congress) to provide a notice or ‘‘(B), (F), and (G)’’; and ‘‘(3) in the case of a determination described report to any committee or subcommittee of the (7) in subsection (c)(9)(B)— in subsection (a)(1)(B) or an approval described Congress (other than both the Committee on the (A) by striking ‘‘year 1997’’ and inserting in subsection (a)(1)(C), indicate the nature, tri- Judiciary of the House of Representatives and ‘‘years 2002 and 2003’’; and bunal, identifying information, and status of the Committee on the Judiciary of the Senate), (B) by striking ‘‘Such transfer shall not’’ and the proceeding, suit, or action. inserting ‘‘Each such transfer shall be subject to ‘‘(d) DECLARATION.—In the case of a deter- then such Act shall be deemed to require that a copy of such notice or report be provided simul- satisfaction by the recipient involved of any mination described in subsection (a)(1)(B), the outstanding lien against the property trans- representative of the United States participating taneously to the Committee on the Judiciary of the House of Representatives and the Committee ferred, but no such transfer shall’’. in the proceeding shall make a clear declaration (b) Section 522 of title 28, United States Code, in the proceeding that any position expressed as on the Judiciary of the Senate, except that clas- sified notices and reports submitted to the Select is amended by inserting ‘‘(a)’’ before ‘‘The’’, to the constitutionality of the provision involved and by inserting at the end the following: is the position of the executive branch of the Committee on Intelligence of the Senate and the Permanent Select Committee on Intelligence of ‘‘(b) With respect to any data, records, or Federal Government (or, as applicable, of the other information acquired, collected, classified, President or of any executive agency or military the House of Representatives shall be excluded from this section so long as simultaneous notifi- preserved, or published by the Attorney General department). for any statistical, research, or other aggregate ‘‘(e) APPLICABILITY TO THE PRESIDENT AND TO cation of the provision of such reports (other than notification required under section 502(1) reporting purpose beginning not later than 1 EXECUTIVE AGENCIES AND MILITARY DEPART- year after the date of enactment of 21st Century MENTS.—The reporting, declaration, and other of the National Security Act of 1947 (50 U.S.C. 413a(1)) is made to the Committees on the Judici- Department of Justice Appropriations Author- provisions of this section relating to the Attor- ization Act and continuing thereafter, and not- ney General and other officers of the Depart- ary of the Senate and the House of Representa- tives. withstanding any other provision of law, the ment of Justice shall apply to the President, to same criteria shall be used (and shall be re- SEC. 204. MISCELLANEOUS USES OF FUNDS; the head of each executive agency or military quired to be used, as applicable) to classify or department (as defined, respectively, in sections TECHNICAL AMENDMENTS. (a) BUREAU OF JUSTICE ASSISTANCE GRANT categorize offenders and victims (in the criminal 105 and 102 of title 5, United States Code) that context), and to classify or categorize actors and establishes or implements a policy described in PROGRAMS.—Title I of the Omnibus Crime Con- trol and Safe Streets Act of 1968 (42 U.S.C. 3711 acted upon (in the noncriminal context).’’. subsection (a)(1)(A) or is authorized to conduct (c) Section 534(a)(3) of title 28, United States litigation, and to the officers of such executive et seq.) is amended— (1) in section 504(a) by striking ‘‘502’’ and in- Code, is amended by adding ‘‘and’’ after the agency.’’. serting ‘‘501(b)’’; semicolon. (b) CONFORMING AMENDMENTS.— (d) Section 509(3) of title 28, United States (1) The table of sections for chapter 31 of title (2) in section 506(a)(1) by striking ‘‘partici- Code, is amended by striking the 2d period. 28, United States Code (as amended by section pating’’; (3) in section 510(a)(3) by striking ‘‘502’’ and (e) Section 533 of title 28, United States Code, 201), is amended by adding at the end the fol- inserting ‘‘501(b)’’; is amended— lowing: (4) in section 510 by adding at the end the fol- (1) by redesignating paragraph (3) as para- ‘‘530D. Report on enforcement of laws.’’. lowing: graph (4); and (2) Section 712 of Public Law 95–521 (92 Stat. ‘‘(d) No grants or contracts under subsection (2) by adding after paragraph (2) a new para- 1883) is amended by striking subsection (b). (b) may be made, entered into, or used, directly graph as follows:

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00296 Fmt 0624 Sfmt 6333 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S14069 ‘‘(3) to assist in the protection of the person of except that the requirement of this paragraph destroyed as the result of any domestic or inter- the Attorney General.’’. shall be deemed satisfied with respect to any national terrorism incident; (f) Hereafter, no compensation or reimburse- such description, statistics, or declaration if (B) providing support to counter, investigate, ment paid pursuant to section 501(a) of Public such non-Federal grantee or such non-Federal or prosecute domestic or international terrorism, Law 99–603 (100 Stat. 3443) or section 241(i) of party shall have failed to provide the same to including, without limitation, paying rewards in the Act of June 27, 1952 (ch. 477) shall be subject the Attorney General, and the Attorney General connection with these activities; and to section 6503(d) of title 31, United States Code, notes the fact of such failure and the name of (C) conducting terrorism threat assessments of and no funds available to the Attorney General such grantee or such party in the report.’’. Federal agencies and their facilities; and may be used to pay any assessment made pursu- (b) Section 1913 of title 18, United States Code, (2) to reimburse any department or agency of ant to such section 6503 with respect to any is amended by striking ‘‘to favor’’ and inserting the Federal Government for any costs incurred such compensation or reimbursement. ‘‘a jurisdiction, or an official of any govern- in connection with detaining in foreign coun- (g) Section 108 of Public Law 103–121 (107 ment, to favor, adopt,’’, by inserting ‘‘, law, tries individuals accused of acts of terrorism Stat. 1164) is amended by replacing ‘‘three’’ with ratification, policy,’’ after ‘‘legislation’’ every that violate the laws of the United States. ‘‘six’’, by replacing ‘‘only’’ with ‘‘, first,’’, and place it appears, by striking ‘‘by Congress’’ the (b) NO EFFECT ON PRIOR APPROPRIATIONS.— by replacing ‘‘litigation.’’ with ‘‘litigation, and, 2d place it appears, by inserting ‘‘or such offi- The amendment made by subsection (a) shall thereafter, for financial systems, and other per- cial’’ before ‘‘, through the proper’’, by inserting not affect the amount or availability of any ap- sonnel, administrative, and litigation expenses ‘‘, measure,’’ before ‘‘or resolution’’, by striking propriation to the Counterterrorism Fund made of debt collection activities.’’. ‘‘Members of Congress on the request of any before the date of enactment of this Act. SEC. 206. OVERSIGHT; WASTE, FRAUD, AND ABUSE Member’’ and inserting ‘‘any such Member or SEC. 209. STRENGTHENING LAW ENFORCEMENT OF APPROPRIATIONS. official, at his request,’’, by striking ‘‘for legisla- IN UNITED STATES TERRITORIES, (a) Section 529 of title 28, United States Code, tion’’ and inserting ‘‘for any legislation’’, and COMMONWEALTHS, AND POSSES- is amended by inserting ‘‘(a)’’ before ‘‘Begin- by striking the period after ‘‘business’’ and in- SIONS. ning’’, and by adding at the end the following: serting ‘‘, or from making any communication (a) EXTENDED ASSIGNMENT INCENTIVE.—Chap- ‘‘(b) Notwithstanding any provision of law whose prohibition by this section might, in the ter 57 of title 5, United States Code, is amend- limiting the amount of management or adminis- ed— trative expenses, the Attorney General shall, not opinion of the Attorney General, violate the Constitution or interfere with the conduct of (1) in subchapter IV, by inserting at the end later than May 2, 2003, and of every year there- the following: after, prepare and provide to the Committees on foreign policy, counter-intelligence, intelligence, the Judiciary and Appropriations of each House or national security activities. Violations of this ‘‘§ 5757. Extended assignment incentive of the Congress using funds available for the section shall constitute violations of section ‘‘(a) The head of an Executive agency may underlying programs— 1352(a) of title 31.’’. pay an extended assignment incentive to an em- ‘‘(1) a report identifying and describing every (c) Section 1516(a) of title 18, United States ployee if— grant (other than one made to a governmental Code, is amended by inserting ‘‘, entity, or pro- ‘‘(1) the employee has completed at least 2 entity, pursuant to a statutory formula), coop- gram’’ after ‘‘person’’, and by inserting ‘‘grant, years of continuous service in 1 or more civil erative agreement, or programmatic services con- or cooperative agreement,’’ after ‘‘sub- service positions located in a territory or posses- tract that was made, entered into, awarded, or, contract,’’. sion of the United States, the Commonwealth of for which additional or supplemental funds (d) Section 112 of title I of section 101(b) of di- Puerto Rico, or the Commonwealth of the North- were provided in the immediately preceding fis- vision A of Public Law 105–277 (112 Stat. 2681– ern Mariana Islands; cal year, by or on behalf of the Office of Justice 67) is amended by striking ‘‘fiscal year’’ and all ‘‘(2) the agency determines that replacing the Programs (including any component or unit that follows through ‘‘Justice—’’, and inserting employee with another employee possessing the thereof, and the Office of Community Oriented ‘‘any fiscal year the Attorney General—’’. required qualifications and experience would be (e) Section 2320(f) of title 18, United States Policing Services), and including, without limi- difficult; and Code, is amended— tation, for each such grant, cooperative agree- ‘‘(3) the agency determines it is in the best in- (1) by striking ‘‘title 18’’ each place it appears ment, or contract: the term, the dollar amount terest of the Government to encourage the em- or value, a description of its specific purpose or and inserting ‘‘this title’’; and (2) by redesignating paragraphs (1) through ployee to complete a specified additional period purposes, the names of all grantees or parties, of employment with the agency in the territory the names of each unsuccessful applicant or (4) as subparagraphs (A) through (D), respec- tively; or possession, the Commonwealth of Puerto Rico bidder, and a description of the specific purpose or Commonwealth of the Northern Mariana Is- or purposes proposed in each unsuccessful ap- (3) by inserting ‘‘(1)’’ after ‘‘(f)’’; and (4) by adding at the end the following: lands, except that the total amount of service plication or bid, and of the reason or reasons for ‘‘(2) The report under paragraph (1), with re- performed in a particular territory, common- rejection or denial of the same; and spect to criminal infringement of copyright, wealth, or possession under 1 or more agree- ‘‘(2) a report identifying and reviewing every ments established under this section may not ex- grant (other than one made to a governmental shall include the following: ‘‘(A) The number of infringement cases involv- ceed 5 years. entity, pursuant to a statutory formula), coop- ing specific types of works, such as audiovisual ‘‘(b) The sum of extended assignment incen- erative agreement, or programmatic services con- works, sound recordings, business software, tive payments for a service period may not ex- tract made, entered into, awarded, or for which ceed the greater of— additional or supplemental funds were provided, video games, books, and other types of works. ‘‘(B) The number of infringement cases involv- ‘‘(1) an amount equal to 25 percent of the an- after October 1, 2002, by or on behalf of the Of- ing an online element. nual rate of basic pay of the employee at the be- fice of Justice Programs (including any compo- ‘‘(C) The number and dollar amounts of fines ginning of the service period, times the number nent or unit thereof, and the Office of Commu- assessed in specific categories of dollar amounts, of years in the service period; or nity Oriented Policing Services) that was pro- such as up to $500, from $500 to $1,000, from ‘‘(2) $15,000 per year in the service period. grammatically and financially closed out or that $1,000 to $5,000, from $5,000 to $10,000, and cat- ‘‘(c)(1) Payment of an extended assignment otherwise ended in the immediately preceding egories above $10,000. incentive shall be contingent upon the employee fiscal year (or even if not yet closed out, was ‘‘(D) The amount of restitution awarded. entering into a written agreement with the terminated or otherwise ended in the fiscal year ‘‘(E) Whether the sentences imposed were agency specifying the period of service and that ended 2 years before the end of such imme- served.’’. diately preceding fiscal year), and including, other terms and conditions under which the ex- without limitation, for each such grant, cooper- SEC. 207. ENFORCEMENT OF FEDERAL CRIMINAL tended assignment incentive is payable. LAWS BY ATTORNEY GENERAL. ative agreement, or contract: a description of ‘‘(2) The agreement shall set forth the method Section 535 of title 28, United States Code, is how the appropriated funds involved actually of payment, including any use of an initial amended in subsections (a) and (b), by replacing were spent, statistics relating to its performance, lump-sum payment, installment payments, or a its specific purpose or purposes, and its effec- ‘‘title 18’’ with ‘‘Federal criminal law’’, and in final lump-sum payment upon completion of the tiveness, and a written declaration by each non- subsection (b), by replacing ‘‘or complaint’’ with entire period of service. Federal grantee and each non-Federal party to ‘‘matter, or complaint witnessed, discovered, ‘‘(3) The agreement shall describe the condi- such agreement or to such contract, that— or’’, and by inserting ‘‘or the witness, discov- tions under which the extended assignment in- ‘‘(A) the appropriated funds were spent for erer, or recipient, as appropriate,’’ after ‘‘agen- centive may be canceled prior to the completion such purpose or purposes, and only such pur- cy,’’. of agreed-upon service period and the effect of pose or purposes; SEC. 208. COUNTERTERRORISM FUND. the cancellation. The agreement shall require ‘‘(B) the terms of the grant, cooperative agree- (a) ESTABLISHMENT; AVAILABILITY.—There is that if, at the time of cancellation of the incen- ment, or contract were complied with; and hereby established in the Treasury of the United tive, the employee has received incentive pay- ‘‘(C) all documentation necessary for con- States a separate fund to be known as the ments which exceed the amount which bears the ducting a full and proper audit under generally ‘‘Counterterrorism Fund’’, amounts in which same relationship to the total amount to be paid accepted accounting principles, and any (addi- shall remain available without fiscal year limi- under the agreement as the completed service tional) documentation that may have been re- tation— period bears to the agreed-upon service period, quired under the grant, cooperative agreement, (1) to reimburse any Department of Justice the employee shall repay that excess amount, at or contract, have been kept in orderly fashion component for any costs incurred in connection a minimum, except that an employee who is in- and will be preserved for not less than 3 years with— voluntarily reassigned to a position stationed from the date of such close out, termination, or (A) reestablishing the operational capability outside the territory, commonwealth, or posses- end; of an office or facility that has been damaged or sion or involuntarily separated (not for cause on

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00297 Fmt 0624 Sfmt 6333 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S14070 CONGRESSIONAL RECORD — SENATE December 20, 2001 charges of misconduct, delinquency, or ineffi- (i) by replacing ‘‘the support of United States Assistant Attorney General specially designated ciency) may not be required to repay any excess prisoners’’ with ‘‘Federal prisoner detention’’; by the Attorney General, submits to the Admin- amounts. (ii) in paragraph (2) by adding ‘‘and’’ after istrative Office of the United States Courts the ‘‘(d) An agency may not put an extended as- ‘‘hire;’’; annual report required by section 2519(2) of title signment incentive into effect during a period in (iii) in paragraph (3) by replacing ‘‘entities; 18, United States Code, that is respectively next which the employee is fulfilling a recruitment or and’’ with ‘‘entities.’’; and due after the end of each of the fiscal years 2001 relocation bonus service agreement under sec- (iv) in paragraph (4) by inserting ‘‘The Attor- and 2002, the Attorney General shall also submit tion 5753 or for which an employee is receiving ney General, in support of Federal prisoner de- to the Chairmen and ranking minority members a retention allowance under section 5754. tainees in non-Federal institutions, is author- of the Committees on the Judiciary of the Senate ‘‘(e) Extended assignment incentive payments ized to make payments, from funds appropriated and of the House of Representatives a report, may not be considered part of the basic pay of for State and local law enforcement assistance, covering the same respective time period, that an employee. for’’ before ‘‘entering’’; and contains the following information with respect ‘‘(f) The Office of Personnel Management may (B) by redesignating— to those orders described in that annual report prescribe regulations for the administration of (i) subsections (b) and (c) as subsections (c) that were applied for by law enforcement agen- this section, including regulations on an em- and (d); and cies of the Department of Justice and whose im- ployee’s entitlement to retain or receive incen- (ii) paragraph (a)(4) as subsection (b), and plementation involved the use of the DCS 1000 tive payments when an agreement is canceled. subparagraphs (A), (B), and (C), of such para- program (or any subsequent version of such pro- Neither this section nor implementing regula- graph (a)(4) as paragraphs (1), (2), and (3) of gram)— tions may impair any agency’s independent au- such subsection (b); and (1) the kind of order or extension applied for thority to administratively determine compensa- (3) in section 209(a)— (including whether or not the order was an tion for a class of its employees.’’; and (A) by striking ‘‘or makes’’ and inserting order with respect to which the requirements of (2) in the analysis by adding at the end the ‘‘makes’’; and sections 2518(1)(b)(ii) and 2518(3)(d) of title 18, following: (B) by striking ‘‘supplements the salary of, United States Code, did not apply by reason of any’’ and inserting ‘‘supplements, the salary of ‘‘5757. Extended assignment incentive.’’. section 2518 (11) of title 18); any’’. (2) the period of interceptions authorized by (b) CONFORMING AMENDMENT.—Section SEC. 303. REQUIRED SUBMISSION OF PROPOSED the order, and the number and duration of any 5307(a)(2)(B) of title 5, United States Code, is AUTHORIZATION OF APPROPRIA- extensions of the order; amended by striking ‘‘or 5755’’ and inserting TIONS FOR THE DEPARTMENT OF (3) the offense specified in the order or appli- ‘‘5755, or 5757’’. JUSTICE FOR FISCAL YEAR 2003. cation, or extension of an order; (c) EFFECTIVE DATE.—The amendments made When the President submits to the Congress (4) the identity of the applying investigative by this section shall take effect on the first day the budget of the United States Government for or law enforcement officer and agency making of the first applicable pay period beginning on fiscal year 2003, the President shall simulta- the application and the person authorizing the or after 6 months after the date of enactment of neously submit to the Committee on the Judici- application; this Act. ary of the House of Representatives and the (5) the nature of the facilities from which or (d) REPORT.—No later than 3 years after the Committee on the Judiciary of the Senate such place where communications were to be inter- effective date of this section, the Office of Per- proposed legislation authorizing appropriations cepted; sonnel Management, after consultation with af- for the Department of Justice for fiscal year 2003 (6) a general description of the interceptions fected agencies, shall submit a report to Con- as the President may judge necessary and expe- made under such order or extension, including— gress assessing the effectiveness of the extended dient. (A) the approximate nature and frequency of assignment incentive authority as a human re- SEC. 304. STUDY OF UNTESTED RAPE EXAMINA- incriminating communications intercepted; sources management tool and making rec- TION KITS. (B) the approximate nature and frequency of ommendations for any changes necessary to im- The Attorney General shall conduct a study other communications intercepted; prove the effectiveness of the incentive author- to assess and report to Congress the number of (C) the approximate number of persons whose ity. Each agency shall maintain such records untested rape examination kits that currently communications were intercepted; (D) the number of orders in which encryption and report such information, including the exist nationwide and shall submit to the Con- was encountered and whether such encryption number and size of incentive offers made and gress a report containing a summary of the re- prevented law enforcement from obtaining the accepted or declined by geographic location and sults of such study. For the purpose of carrying plain text of communications intercepted pursu- occupation, in such format and at such times as out such study, the Attorney General shall at- ant to such order; and the Office of Personnel Management may pre- tempt to collect information from all law en- (E) the approximate nature, amount, and cost scribe, for use in preparing the report. forcement jurisdictions in the United States. of the manpower and other resources used in the SEC. 210. ADDITIONAL AUTHORITIES OF THE AT- SEC. 305. REPORTS ON USE OF DCS 1000 (CARNI- interceptions; TORNEY GENERAL. VORE). (7) the number of arrests resulting from inter- Section 151 of the Foreign Relations Act, fiscal (a) REPORT ON USE OF DCS 1000 (CARNIVORE) ceptions made under such order or extension, years 1990 and 1991 (5 U.S.C. 5928 note) is TO IMPLEMENT ORDERS UNDER 18 U.S.C. 3123.— and the offenses for which arrests were made; amended by inserting ‘‘or Federal Bureau of In- At the same time that the Attorney General sub- (8) the number of trials resulting from such vestigation’’ after ‘‘Drug Enforcement Adminis- mits to Congress the annual reports required by interceptions; tration’’. section 3126 of title 18, United States Code, that (9) the number of motions to suppress made TITLE III—MISCELLANEOUS are respectively next due after the end of each with respect to such interceptions, and the num- of the fiscal years 2001 and 2002, the Attorney SEC. 301. REPEALERS. ber granted or denied; General shall also submit to the Chairmen and (10) the number of convictions resulting from (a) OPEN-ENDED AUTHORIZATION OF APPRO- ranking minority members of the Committees on such interceptions and the offenses for which PRIATIONS FOR NATIONAL INSTITUTE OF CORREC- the Judiciary of the Senate and of the House of the convictions were obtained and a general as- TIONS.—Chapter 319 of title 18, United States Representatives a report, covering the same re- sessment of the importance of the interceptions; Code, is amended by striking section 4353. spective time period, on the number of orders and (b) OPEN-ENDED AUTHORIZATION OF APPRO- under section 3123 applied for by law enforce- (11) the specific persons authorizing the use of PRIATIONS FOR UNITED STATES MARSHALS SERV- ment agencies of the Department of Justice the DCS 1000 program (or any subsequent ICE.—Section 561 of title 28, United States Code, whose implementation involved the use of the version of such program) in the implementation is amended by striking subsection (i). DCS 1000 program (or any subsequent version of of such order. (c) REDUNDANT AUTHORIZATIONS OF PAY- such program), which report shall include infor- SEC. 306. STUDY OF ALLOCATION OF LITIGATING MENTS FOR REWARDS.— mation concerning— ATTORNEYS. (1) Chapter 203 of title 18 of the United States (1) the period of interceptions authorized by Not later than 180 days after the date of the Code is amended by striking sections 3059, the order, and the number and duration of any enactment of this Act, the Attorney General 3059A, 3059B, 3075, and all the matter after the extensions of the order; shall submit a report to the chairman and rank- first sentence of 3072; and (2) the offense specified in the order or appli- ing minority member of the Committees on the (2) Public Law 101–647 is amended in section cation, or extension of an order; Judiciary of the House of Representatives and 2565, by replacing all the matter after ‘‘2561’’ in (3) the number of investigations involved; Committee on the Judiciary of the Senate, de- subsection (c)(1) with ‘‘the Attorney General (4) the number and nature of the facilities af- tailing the distribution or allocation of appro- may, in his discretion, pay a reward to the de- fected; priated funds, attorneys and other personnel, clarant’’ and by striking subsection (e); and by (5) the identity of the applying investigative and per-attorney workloads, for each Office of striking section 2569. or law enforcement agency making the applica- United States Attorney and each division of the SEC. 302. TECHNICAL AMENDMENTS TO TITLE 18 tion for an order; and Department of Justice except the Justice Man- OF THE UNITED STATES CODE. (6) the specific persons authorizing the use of agement Division. Title 18 of the United States Code is amend- the DCS 1000 program (or any subsequent SEC. 307. USE OF TRUTH-IN-SENTENCING AND ed— version of such program) in the implementation VIOLENT OFFENDER INCARCER- (1) in section 4041 by striking ‘‘at a salary of of such order. ATION GRANTS. $10,000 a year’’; (b) REPORT ON USE OF DCS 1000 (CARNIVORE) Section 20105(b) of the Violent Crime Control (2) in section 4013— TO IMPLEMENT ORDERS UNDER 18 U.S.C. 2518.— and Law Enforcement Act of 1994 (42 U.S.C. (A) in subsection (a)— At the same time that the Attorney General, or 13705(b)) is amended to read as follows:

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‘‘(b) USE OF TRUTH-IN-SENTENCING AND VIO- (3) INTERNAL AFFAIRS OFFICES.—Reviewing ‘‘California: LENT OFFENDER INCARCERATION GRANTS.— the activities of internal affairs offices of the Northern ...... 14 Funds provided under section 20103 or 20104 Federal Bureau of Investigation, including the Eastern ...... 6 may be applied to the cost of— Inspections Division and the Office of Profes- Central ...... 27 ‘‘(1) altering existing correctional facilities to sional Responsibility. Southern ...... 13.’’; provide separate facilities for juveniles under (4) PERSONNEL.—Investigating allegations of (B) by striking the item relating to North the jurisdiction of an adult criminal court who serious misconduct by personnel of the Federal Carolina and inserting the following: are detained or are serving sentences in adult Bureau of Investigation. (5) OTHER PROGRAMS AND OPERATIONS.—Re- ‘‘North Carolina: prisons or jails; Eastern ...... 4 ‘‘(2) providing correctional staff who are re- viewing matters relating to any other program or and operation of the Federal Bureau of In- Middle ...... 4 sponsible for supervising juveniles who are de- Western ...... 4.’’; tained or serving sentences under the jurisdic- vestigation that the Inspector General deter- tion of an adult criminal court with orientation mines requires review. and and ongoing training regarding the unique (6) RESOURCES.—Identifying resources needed (C) by striking the item relating to Texas and needs of such offenders; and by the Inspector General to implement such inserting the following: ‘‘(3) providing ombudsmen to monitor the plan. ‘‘Texas: treatment of juveniles who are detained or serv- (c) REPORT ON INSPECTOR GENERAL FOR FED- Northern ...... 12 ing sentences under the jurisdiction of an adult ERAL BUREAU OF INVESTIGATION.—Not later Southern ...... 19 criminal court in adult facilities, consistent with than 90 days after the date of enactment of this Eastern ...... 7 guidelines issued by the Assistant Attorney Gen- Act, the Attorney General shall submit a report Western ...... 13.’’. and recommendation to the Chairman and rank- eral. (b) DISTRICT JUDGESHIPS FOR THE CENTRAL ing member of the Committees on the Judiciary AND SOUTHERN DISTRICTS OF ILLINOIS.— SEC. 308. AUTHORITY OF THE DEPARTMENT OF of the Senate and the House of Representatives JUSTICE INSPECTOR GENERAL. (1) CONVERSION OF TEMPORARY JUDGESHIPS TO concerning whether there should be established, Section 8E of the Inspector General Act of PERMANENT JUDGESHIPS.—The existing district within the Department of Justice, a separate of- 1978 (5 U.S.C. App.) is amended— judgeships for the central district and the south- fice of Inspector General for the Federal Bureau (1) in subsection (b), by striking paragraphs ern district of Illinois authorized by section of Investigation that shall be responsible for su- (2) and (3) and inserting the following: 203(c) (3) and (4) of the Judicial Improvements pervising independent oversight of programs ‘‘(2) except as specified in subsection (a) and Act of 1990 (Public Law 101–650, 28 U.S.C. 133 and operations of the Federal Bureau of Inves- paragraph (3), may investigate allegations of note) shall, as of the date of the enactment of tigation. criminal wrongdoing or administrative mis- this Act, be authorized under section 133 of title conduct by an employee of the Department of SEC. 310. USE OF RESIDENTIAL SUBSTANCE 28, United States Code, and the incumbents in ABUSE TREATMENT GRANTS TO PRO- Justice, or may, in the Inspector General’s dis- VIDE FOR SERVICES DURING AND such offices shall hold the offices under section cretion, refer such allegations to the Office of AFTER INCARCERATION. 133 of title 28, United States Code (as amended Professional Responsibility or the internal af- Section 1901 of title I of the Omnibus Crime by this section). fairs office of the appropriate component of the Control and Safe Streets Act of 1968 (42 U.S.C. (2) TECHNICAL AND CONFORMING AMEND- Department of Justice; and 3796ff) is amended by adding at the end the fol- MENT.—The table contained in section 133(a) of ‘‘(3) shall refer to the Counsel, Office of Pro- lowing: title 28, United States Code, is amended by strik- fessional Responsibility of the Department of ‘‘(c) ADDITIONAL USE OF FUNDS.—States that ing the item relating to Illinois and inserting the Justice, allegations of misconduct involving De- demonstrate that they have existing in-prison following: partment attorneys, investigators or law en- drug treatment programs that are in compliance ‘‘Illinois: forcement personnel, where the allegations re- with Federal requirements may use funds Northern ...... 22 late to the exercise of an attorney’s authority to awarded under this part for treatment and Central ...... 4 investigate, litigate, or provide legal advice, ex- sanctions both during incarceration and after Southern ...... 4.’’. cept that no such referral shall be made if the release.’’. (c) TEMPORARY JUDGESHIP.—The President attorney is employed in the Office of Profes- SEC. 311. REPORT ON THREATS AND ASSAULTS shall appoint, by and with the advice and con- sional Responsibility.’’; and AGAINST FEDERAL LAW ENFORCE- sent of the Senate, 1 additional district judge for (2) by inserting at the end the following: MENT OFFICERS, UNITED STATES the western district of North Carolina. The first ‘‘(d) The Attorney General shall insure by JUDGES, UNITED STATES OFFICIALS vacancy in the office of district judge in the regulation that any component of the Depart- AND THEIR FAMILIES. western district of North Carolina, occurring 7 ment of Justice receiving a nonfrivolous allega- (a) REPEAL OF COMPILATION OF STATISTICS years or more after the confirmation date of the tion of criminal wrongdoing or administrative RELATING TO INTIMIDATION OF GOVERNMENT judge named to fill the temporary district judge- misconduct by an employee of the Department EMPLOYEES.—Section 808 of the Antiterrorism ship created in that district by this subsection, shall report such information to the Inspector and Effective Death Penalty Act of 1996 (Public shall not be filled. General.’’. Law 104–132; 110 Stat.1310) is repealed. (b) REPORT ON THREATS AND ASSAULTS (d) EXTENSION OF TEMPORARY FEDERAL DIS- SEC. 309. REVIEW OF THE DEPARTMENT OF JUS- AGAINST FEDERAL LAW ENFORCEMENT OFFICERS, TRICT COURT JUDGESHIP FOR THE NORTHERN TICE. UNITED STATES JUDGES, UNITED STATES OFFI- DISTRICT OF OHIO.— (a) APPOINTMENT OF OVERSIGHT OFFICIAL CIALS AND THEIR FAMILIES.—Not later than 90 (1) IN GENERAL.—Section 203(c) of the Judicial WITHIN THE OFFICE OF INSPECTOR GENERAL.— days after the date of enactment of this Act, the Improvement Act of 1990 (28 U.S.C. 133 note) is The Inspector General of the Department of Jus- Attorney General shall submit to the Chairmen amended— tice shall direct that one official from the In- and ranking minority members of the Commit- (A) in the first sentence following paragraph spector General’s office shall be responsible for tees on the Judiciary of the Senate and of the (12), by striking ‘‘and the eastern district of supervising and coordinating independent over- House of Representatives a report on the num- Pennsylvania’’ and inserting ‘‘, the eastern dis- sight of programs and operations of the Federal ber of investigations and prosecutions under trict of Pennsylvania, and the northern district Bureau of Investigation until September 30, section 111 of title 18, United States Code, and of Ohio’’; and 2003. The Inspector General may continue this section 115 of title 18, United States Code, for (B) by inserting after the third sentence fol- policy after September 30, 2003, at the Inspector the fiscal year 2001. lowing paragraph (12) ‘‘The first vacancy in the General’s discretion. SEC. 312. ADDITIONAL FEDERAL JUDGESHIPS. office of district judge in the northern district of (b) INSPECTOR GENERAL OVERSIGHT PLAN FOR (a) PERMANENT DISTRICT JUDGES FOR THE DIS- Ohio occurring 15 years or more after the con- THE FEDERAL BUREAU OF INVESTIGATION.—Not TRICT COURTS.— firmation date of the judge named to fill the later than 30 days after the date of the enact- (1) IN GENERAL.—The President shall appoint, temporary judgeship created under this sub- ment of this Act, the Inspector General of the by and with the advice and consent of the Sen- section shall not be filled.’’. Department of Justice shall submit to the Chair- ate— (2) EFFECTIVE DATE.—The amendments made man and ranking member of the Committees on (A) 5 additional district judges for the south- by this section shall take effect on the earlier the Judiciary of the Senate and the House of ern district of California; of— Representatives a plan for oversight of the Fed- (B) 1 additional district judge for the western (A) the date of enactment of this Act; or eral Bureau of Investigation. The Inspector district of North Carolina; and (B) November 15, 2001. General shall consider the following activities (C) 2 additional district judges for the western (e) AUTHORIZATION OF APPROPRIATIONS.— for inclusion in such plan: district of Texas. There are authorized to be appropriated such (1) FINANCIAL SYSTEMS.—Auditing the finan- (2) TABLES.—In order that the table contained sums as may be necessary to carry out this sec- cial systems, information technology systems, in section 133 of title 28, United States Code, tion, including such sums as may be necessary and computer security systems of the Federal will, with respect to each judicial district, reflect to provide appropriate space and facilities for Bureau of Investigation. the changes in the total number of permanent the judicial positions created by this section. (2) PROGRAMS AND PROCESSES.—Auditing and district judgeships authorized as a result of evaluating programs and processes of the Fed- paragraph (1) of this subsection, such table is TITLE IV—VIOLENCE AGAINST WOMEN eral Bureau of Investigation to identify systemic amended— SEC. 401. SHORT TITLE. weaknesses or implementation failures and to (A) by striking the item relating to California This title may be cited as the ‘‘Violence recommend corrective action. and inserting the following: Against Women Office Act’’.

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00299 Fmt 0624 Sfmt 6333 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S14072 CONGRESSIONAL RECORD — SENATE December 20, 2001 SEC. 402. ESTABLISHMENT OF VIOLENCE thank Senator HATCH, the ranking Re- (Public Law 105–147). The American AGAINST WOMEN OFFICE. publican member of the Judiciary copyright industry is the largest ex- (a) IN GENERAL.—There is established in the Committee, for his hard work and sup- porter of goods from the United States, Department of Justice a Violence Against Women Office (in this title referred to as the port of this legislation. employing more than 7 million Ameri- ‘‘Office’’) under the general authority of the At- The last time Congress properly au- cans, and these additional funds are torney General. thorized spending for the entire De- needed to strengthen the resources (b) SEPARATE OFFICE.—The Office— partment of Justice (‘‘DOJ’’ or the available to DOJ and the FBI to inves- (1) shall not be part of any division or compo- ‘‘Department’’) was in 1979. Congress tigate and prosecute cyberpiracy. nent of the Department of Justice; and extended that authorization in 1980 and Title II permanently establishes a (2) shall be a separate office headed by a Di- 1981. Since then, Congress has not clear set of authorities that the De- rector who shall report to the Attorney General passed nor has the President signed an through the Associate Attorney General of the partment may rely on to use appro- United States, and who shall also serve as authorization bill for the Department. priated funds, including establishing Counsel to the Attorney General. In fact, there are a number of years permitted uses of appropriated funds SEC. 403. JURISDICTION. where Congress failed to consider any by the Attorney General, the FBI, the The Office— Department authorization bill. This 21- Immigration and Naturalization Serv- (1) shall have jurisdiction over all matters re- year failure to properly reauthorize the ice, the Federal Prison System, and the lated to administration, enforcement, coordina- Department has forced the appropria- Detention Trustee. Title II also estab- tion, and implementation of all responsibilities tions committees in both houses to re- lishes new reporting requirements of the Attorney General or the Department of authorize and appropriate money. Justice related to violence against women, in- which are intended to enhance Con- We have ceded the authorization gressional oversight of the Depart- cluding formula and discretionary grant pro- power to the appropriators for too grams authorized under the Violence Against ment, including new reporting require- Women Act of 1994 (title IV of Public Law 103– long. Our bipartisan legislation is an ments for information about the en- 322) and the Violence Against Women Act of attempt to reaffirm the authorizing au- forcement of existing laws, for infor- 2000 (Division B of Public Law 106–386); and thority and responsibility of the House mation regarding the Office of Justice (2) shall be solely responsible for coordination and Senate Judiciary Committees. I Programs (OJP), and the submission of with other offices or agencies of administration, commend Chairman SENSENBRENNER other reports, required by existing law, enforcement, and implementation of the pro- and Ranking Member CONYERS of the grams, grants, and activities authorized or un- to the House and Senate Judiciary House Judiciary Committee for work- Committees. Section 206(e) expands an dertaken under the Violence Against Women ing in a bipartisan manner to pass Act of 1994 (title IV of Public Law 103–322) and existing reporting requirement regard- the Violence Against Women Act of 2000 (Divi- similar legislation in the House of Rep- ing copyright infringement cases. resentatives. sion B of Public Law 106–386). Title II also provides the Department SEC. 404. DIRECTOR OF VIOLENCE AGAINST The 21st Century Department of Jus- tice Appropriations Authorization Act, with additional law enforcement tools WOMEN OFFICE. in the war against terrorism. For in- (a) APPOINTMENT.—The President, by and is divided into two divisions: the first stance, section 201 permits the FBI to with the advice and consent of the Senate, shall division is a comprehensive authoriza- appoint a Director for the Violence Against tion of the Department; and the second enter into cooperative projects with Women Office (in this title referred to as the division is a comprehensive authoriza- foreign countries to improve law en- ‘‘Director’’) to be responsible for the administra- tion of expired and new Department forcement or intelligence operations. tion, coordination, and implementation of the grants programs and improvements to Section 210 of the committee approved programs and activities of the office. bill also provided for special ‘‘danger (b) OTHER EMPLOYMENT.—The Director shall criminal law and procedures. Division A of our bipartisan legisla- pay’’ allowances for FBI agents in haz- not— ardous duty locations outside the (1) engage in any employment other than that tion contains four titles which author- of serving as Director; or ize appropriations for the Department United States, as is provided for agents (2) hold any office in, or act in any capacity for fiscal year 2002, provide permanent of the Drug Enforcement Administra- for, any organization, agency, or institution enabling authorities which will allow tion. At the insistence of a Republican with which the Office makes any contract or the Department to efficiently carry out Senator, section 210 have regrettably other agreement under the Violence Against its mission, clarify and harmonize ex- been removed from the bill to ensure Women Act of 1994 (title IV of Public Law 103– final passage. 322) or the Violence Against Women Act of 2000 isting statutory authority, and repeal (Division B of Public Law 106–386). obsolete statutory authorities. The bill Title III repeals outdated and open- (c) VACANCY.—In the case of a vacancy, the establishes certain reporting require- ended statutes, requires the submission President may designate an officer or employee ments and other mechanisms, such as of an annual authorization bill to the who shall act as Director during the vacancy. DOJ Inspector General authority to in- House and Senate Judiciary Commit- (d) COMPENSATION.—The Director shall be vestigate allegations of misconduct by tees, and provides states with flexi- compensated at a rate of pay not to exceed the employees of the Federal Bureau of In- bility to use existing Truth-In-Sen- rate payable for level V of the Executive Sched- vestigation (FBI), intended to better tencing and Violent Offender Incarcer- ule under section 5316 of title 5, United States ation Grants to account for juveniles Code. enable the Congress and the Depart- ment to oversee the operations of the being housed in adult prison facilities. SEC. 405. REGULATORY AUTHORIZATION. Title III requires the Department to The Director may, after appropriate consulta- Department. Finally, the bill creates a tion with representatives of States and units of separate Violence Against Women Of- submit to Congress studies on untested local government, establish such rules, regula- fice to combat domestic violence. rape examination kits, and the alloca- tions, and procedures as are necessary to the ex- Title I authorizes appropriations for tion of funds, personnel, and workloads ercise of the functions of the Office, and are the major components of the Depart- for each office of U.S. Attorney and consistent with the stated purposes of this Act ment for fiscal year 2002. The author- each division of the Department. and those of the Violence Against Women Act of ization mirrors the President’s request In addition, Title III provides new 1994 (title IV of Public Law 103–322) and the Vi- olence Against Women Act of 2000 (Division B of regarding the Department except in oversight and reporting requirements Public Law 106–386). two areas. First, the bill increased the for the FBI and other activities con- SEC. 406. OFFICE STAFF. President’s request for the DOJ Inspec- ducted by the Justice Department. The Attorney General shall ensure that there tor General by $10 million. This is nec- Specifically, section 308 codifies the is adequate staff to support the Director in car- essary because the Committee is con- Attorney General’s order of July 11, rying out the responsibilities of the Director cerned about the severe downsizing of 2001, which revised Department of Jus- under this title. that office and the need for oversight, tice’s regulations concerning the In- SEC. 407. AUTHORIZATION OF APPROPRIATIONS. particularly of the FBI, at the Depart- spector General. The section insures There are authorized to be appropriated such ment. Second, the bill authorizes at that the Inspector General for the De- sums as are necessary to carry out this title. least $10 million for the investigation partment of Justice has the authority Mr. LEAHY. Mr. President, I am and prosecution of intellectual prop- to decide whether a particular allega- pleased to the Senate is finally passing erty crimes, including software coun- tion of misconduct by Department of the 21st Century Department of Justice terfeiting crimes and crimes identified Justice personnel, including employees Appropriations Authorization Act. I in the No Electronic Theft (NET) Act of the Federal Bureau of Investigation

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00300 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S14073 and the Drug Enforcement Administra- We increased the Department of Jus- drug problems that most affect our tion, should be investigated by the In- tice grant funding for the Boys and communities. spector General or by the internal af- Girls Clubs from $20 million in fiscal No community or State is immune fairs unit of the appropriate component year 1998 to $60 million in fiscal year from the ravages of drug abuse. Earlier of the Department of Justice. 2001. That is why we have now 2,591 this year, I held two town meetings up Section 309 directs the Inspector Gen- Boys and Girls Clubs in all 50 States in Vermont to talk about the most eral of the Department to appoint an and 3.3 million children are served. It is pressing drug problem in my State: official from the Inspector General’s a success story. heroin. Vermont has historically had office to be responsible for supervising I hear from parents certainly across one of the lowest crime rates in the na- and coordinating independent over- my State how valuable it is to have the tion, but we are experiencing serious sight of programs and operations of the Boys and Girls Clubs. I hear it also troubles because of drug abuse. I was FBI until the end of the 2003 fiscal from police chiefs. In fact, one police pleased that so many Vermonters—par- year. This section also requires the In- chief told me, rather than giving him a ents, students, teachers, and concerned spector General of the Department to couple more police officers, fund a community members, as well as profes- submit to Congress not later than 30 Boys and Girls Club in his district; it sionals from our State’s prevention, days after enactment of this Act an would be more beneficial. This long- treatment, and enforcement commu- oversight plan for the FBI. This section term Federal commitment has enabled nities—took time out of their busy further requires the Attorney General Vermonters to establish six Boys and schedules to discuss the way Vermont’s to submit a report and recommenda- Girls Clubs—in Brattleboro, Bur- heroin problem affects their lives. tion to the House and Senate Commit- lington, Montpelier, Randolph, Rut- They have informed my thinking on tees on the Judiciary not later than 90 land, and Vergennes. In fact, I believe these issues and rededicated me to re- days after enactment of this Act on the Vermont Boys and Girls Clubs have ducing the scourge of drug abuse whether there should be established a received more than a million dollars throughout our nation. separate office of Inspector General for from the Department of Justice grants This bill will provide necessary as- the FBI that shall be responsible for since 1998. sistance to Vermont and every other supervising independent oversight of In May of this year at a Vermont State. It contains numerous grant pro- programs and operations of the FBI. town meeting on heroin prevention and grams to aid States and local commu- In addition, the bill as passed by the treatment, I was honored to present a nities in their efforts to prevent and committee, contains language offered check for more than $150,000 in Depart- treat drug abuse. Of particular interest as an amendment by Senator FEIN- ment of Justice funds to the members to Vermonters, S. 304 establishes drug STEIN to authorize a number of new of the Burlington club to continue treatment grants for rural States and judgeships. I strongly support Senator helping young Vermonters find some authorizes money for residential treat- FEINSTEIN’s amendment, and believe constructive alternatives for both their ment centers for mothers addicted to that the need for these new judgeships talents and energies, because we know heroin, methamphetamines, or other is acute. that in Vermont and across the Nation drugs. Title IV establishes a separate Vio- Boys and Girls Clubs are proving they This legislation also will help States lence Against Women Office (VAWO) are a growing success at preventing and communities reduce drug use in within the Department. The VAWO is crime and supporting young children. prisons through testing and treatment. headed by a Director, who is appointed Parents, educators, law enforcement This is an effort I proposed in the Drug by the President and confirmed by the officers, and others know we need safe Free Prisons Act, which I introduced in Senate. In addition, Title IV enumer- havens where young people can learn the last Congress. It will fund pro- ates duties and responsibilities of the and grow up free from the influence of grams designed to reduce recidivism Director, and authorizes appropriations the drugs and gangs and crime. That is through drug treatment and other to ensure the VAWO is adequately why the Boys and Girls Clubs are so services for former prisoners after re- staffed. I strongly support a separate important to our Nation’s children. In- lease. As Joseph Califano, Jr., the VAWO office within the Department of deed, the success already in Vermont president of the Center on Addiction Justice. has led to efforts to create nine more and Substance Abuse and former sec- The 21st Century Department of Jus- clubs throughout my home State. Con- retary of the Department of Health, tice Appropriations Authorization Act tinued Federal support would be crit- Education, and Welfare, told the Na- should result in a more effective, as ical to these expansion efforts in tional Press Club in January. ‘‘The well as efficient, Department of Justice Vermont and in the other 49 States as next great opportunity to reduce crime for the American people. well. is to provide treatment and training to Division B of our bipartisan legisla- Title II and III is the Drug Abuse drug and alcohol abusing prisoners who tion includes eight titles which com- Education, Prevention, and Treatment will return to a life of criminal activ- pile a comprehensive authorization of Act of 2001. I am pleased that we have ity unless they leave prison substance expired and new Department of Justice included in this package the version of free and, upon release, enter treatment grants programs and improvements to S. 304 that the Judiciary Committee and continuing aftercare.’’ This legisla- criminal law and procedures. passed unanimously on November 29. tion will accomplish both of those Title I authorizes Department of Jus- This legislation ushers in a new, bipar- goals. In addition, this bill will author- tice grants to establish 4,000 Boys and tisan approach to our efforts to reduce ize drug courts—another step I pro- Girls Clubs across the country before drug abuse in the United States. It was posed in the Drug Free Prisons Act— January 1, 2007. This bipartisan amend- introduced by Senator HATCH and I in and juvenile drug courts. ment authorizes Department of Justice February. Senator HATCH held an ex- Through this legislation, we extend grants for each of the next 5 years to cellent hearing on the bill in March, food stamps to people who are ineli- establish 1,200 additional Boys and the Judiciary Committee has approved gible under current law due to a past Girls Clubs across the Nation. In fact, it, and the full Senate should follow drug offense, but have completed or are this will bring the number of Boys and the Committee’s lead. This is a bill enrolled in drug treatment. Senator Girls clubs to 4,000. That means they that is embraced by Democrats and Re- HATCH and I wanted to go further, and will serve approximately 6 million publicans alike, as well as law enforce- the Judiciary Committee approved lan- young people by January 1, 2007. ment officers and drug treatment pro- guage that would have also extended I am very impressed with what I see viders. food stamps to those who were preg- about the Boys and Girls Clubs as I I have wanted to pass legislation like nant, seriously ill, or had dependent travel around the country. In 1997, I this for years. This legislation provides children. At Senator KYLE’s insistence, was very proud to join with Senator a comprehensive approach to reducing those provisions have regrettably been HATCH and others to pass bipartisan drug abuse in America. I hope that the removed from this amendment. legislation to authorize grants by the innovative programs established by This legislation also includes a grant Department of Justice to fund 2,500 this legislation will assist all of our program to assist State and local law Boys and Girls Clubs across the Nation. States in their efforts to address the enforcement in developing new ways to

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00301 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S14074 CONGRESSIONAL RECORD — SENATE December 20, 2001 fight crime. This National Comprehen- H.R. 2137 as passed by the House of these problems in a thorough and com- sive Crime-Free Communities Act will Representatives by 374–0 vote. I com- prehensive manner. I therefore urge my provide funding for 250 communities, mend Chairman SENSENBRENNER and colleagues in the House both to ap- including at least one from every Senator HATCH for their leadership on prove title VI of this bill, and to con- State, to support crime prevention ef- this technical corrections legislation. sider the other provisions of S. 1437. We forts. It also provides funding for each Title VI clarifies that an attorney for cannot afford to wait until more inves- State to assist local communities by, the Federal Government may provide tigations are compromised. among other things, providing training legal advice and supervision on certain Title VII contains amendments, au- and technical assistance in preventing undercover activities for the purpose of thored by Senator SESSIONS, that mod- crime. investigating terrorism. Title VI of the ify the Paul Coverdell National Foren- Our bipartisan bill, S. 304, represents bill modifies the McDade law, 28 U.S.C. sic Science Improvement Act of 2000 a major step forward for our drug pol- 530B, which was included in the omni- (P.L. 106–561) to enhance participation icy. It is a bill that has been very im- bus appropriations bill at the end of by local crime labs and to allow for portant to Senator HATCH, and it has the 105th Congress. The McDade law DNA backlog elimination. Dr. Eric been very important to me. I think it was intended to codify the principle— Buel, the Director of the Vermont Fo- will greatly benefit Vermonters, and with which I strongly agree—that the rensic Laboratory, has written to me citizens of every State, and I urge the Justice Department may not unilater- to endorse these changes to the Cover- Senate to give this bill its full support. ally exempt its lawyers from State eth- dell Act, which I was proud to cospon- Title IV is similar to S. 1315, the Ju- ics rules that apply to all members of sor last year. I support this title to dicial Improvement and Integrity Act the bar. help bring the necessary forensic tech- of 2001, introduced by myself and Sen- Unfortunately, the McDade law has nology to all states to improve their ator HATCH, to protect witnesses who had serious unintended consequences criminal justice systems. provide information on criminal activ- for Federal law enforcement, delaying Title VIII contains the Ecstasy Pre- ity to law enforcement officials by in- important criminal investigations, pre- vention Act, authored by Senator GRA- creasing maximum sentences and other venting the use of effective and tradi- HAM, which authorizes several Depart- improvements to the criminal code. tionally accepted investigative tech- ment of Justice grant programs to This title would do a number of niques, and serving as the basis of liti- combat Ecstasy drug abuse. I commend things, such as: gation to interfere with legitimate fed- Senator GRAHAM for his leadership in No. 1. Protect witnesses who come eral prosecutions. fighting Ecstasy use. forward to provide information on Of particular concern, the McDade I look forward to working with Sen- criminal activity to law enforcement law is wreaking havoc on law enforce- ator HATCH, Congressman SENSEN- officials by increasing maximum sen- ment efforts in Oregon, where an attor- BRENNER and Congressman CONYERS tences where physical force is actually ney ethics decision by the State Su- and other members of the upcoming used or attempted on the witness; preme Court—In re Gatti, 330 Or. 517 conference to bring the important busi- No. 2. Eliminate a loophole in the (2000)—has resulted in a complete shut- ness of re-authorizing the Department criminal contempt statute that allows down of all undercover activity. The back before the Senate and House Judi- some defendants to avoid serving pris- loss of this essential crime-fighting ciary Committees. Clearly, regular re- on sentences imposed by the Court; tool poses a serious and continuing authorization of the Department No. 3. Eliminate a loophole in the problem for law enforcement in that should be part and parcel of the Com- statute of limitations that makes some State, and threatens to hamstring in- mittees’ traditional role in overseeing defendants immune from further pros- vestigations into all manner of crimi- the Department’s activities. Swift pas- ecution if they plead guilty then later nal activity, including terrorism. sage into law of the 21st Century De- get their plea agreements vacated; I have introduced a bill, together partment of Justice Appropriations No. 4. Grant the government the with Senators HATCH and WYDEN, that Authorization Act will be a significant clear right to appeal the dismissal of a would remedy the problems caused by step toward restoring our oversight part of a count of an indictment, such the McDade law while adhering to its role. as a predicate act in a RICO count; basic premise: The Department of Jus- Mr. HATCH. Mr. President, I rise to No. 5. Insure that courts may impose tice does not have the authority it long commend my colleagues today for the appropriate terms of supervised release claimed to write its own ethics rules. passage of the 21st Century Depart- in drug cases; The proposed legislation, S. 1437, would ment of Justice Appropriations Au- No. 6. Give the District Courts great- clarify the ethical standards governing thorization Act. This legislation con- er flexibility in fashioning appropriate the conduct of government attorneys tains a host of provisions that are crit- conditions of release for certain elderly and address the most pressing contem- ical to law enforcement and to our ef- prisoners; and porary question of government attor- forts to combat illegal drug use. Let No. 7. Clarify the District Court’s au- ney ethics—namely, the question of me take a moment to discuss some of thority to revoke or modify a term of which rule should govern government them in more detail. supervised release when the defendant attorneys’ communications with rep- This provision establishes operating willfully violates the obligation to pay resented persons. The Senate approved authority for the Department of Jus- restitution to the victims of the de- S. 1437 on October 11, 2001, as part of a tice and expressly authorizes some fendant’s crime. broader antiterrorism bill (S. 1510), but practices that have developed at the The only difference between this the House dropped this reasonable cor- Department of Justice on an ad hoc amendment and the earlier bill which rective legislation from the final basis. Pursuant to the legislation, DOJ was cosponsored by Senator HATCH is antiterrorism package (H.R. 3162). activities may be carried out through additional language in the provision Title VI of Division B of the bill that any means in the reasonable discretion dealing with newly imposed terms of the Senate passes today is a subset of of the Attorney General, including by supervised release for certain elderly S. 1437, which will restore to Federal sending or receiving details of per- prisoners. The new language would law enforcement in Oregon the ability sonnel to or from other branches of the limit such new terms to the unserved to use undercover techniques to inves- Government and through contracts, portion of the prison term which the tigate terrorist activities. This legisla- grants, or cooperative agreements with judge is considering amending. I thank tion is a much-needed step in the right non-Federal parties. Senator HATCH for his assistance on direction; however, it is hardly a com- The legislation ensures account- this legislation. plete solution for the many serious ability by directing the Attorney Gen- Title V is the Criminal Law Tech- problems caused by the McDade law. eral to provide annually to the House nical Amendments Act, which makes At a time when we need our Federal and Senate Judiciary and Appropria- clerical and other technical amend- agents and prosecutors to move quick- tions Committees: (1) a report detail- ments to title 18, United States Code, ly to catch those responsible for the re- ing every grant, cooperative agree- and other laws relating to crime and cent terrorist attacks, and to prevent ment, or programmatic services con- criminal procedure and is similar to further attacks, we need to address tract that was made, entered into,

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00302 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S14075 awarded, or extended in the imme- 4,000 Boys and Girls Clubs across the tivities and to participate in such ac- diately preceding fiscal year by or on country before January 1, 2007. As my tivities, even though such activities behalf of the Office of Justice Pro- colleagues know, for years these clubs may require the use of deceit or mis- grams; and (2) a report identifying and have steered thousands of our young representation. The Senators from the reviewing every grant, agreement, or people away from lives of drugs and State of Oregon, GORDON SMITH and contract that was closed out or other- crime. I am pleased that we are able to RON WYDEN, deserve the appreciation wise ended in the immediately pre- expand this excellent program to serve of the federal prosecutors in their state ceding fiscal year. The bill also en- other needy young people. for insisting that this provision be in- hances oversight over the FBI by re- The legislation also contains S. 304, cluded in this legislation. quiring the Inspector General of DOJ the ‘‘Drug Abuse Education, Preven- Finally, the bill includes Senator to appoint a Deputy Inspector General tion, and Treatment Act of 2001,’’ GRAHAM’s Ecstasy Prevention Act of for the FBI who shall be responsible for which I authored with Chairman LEAHY 2001. The Ecstasy Prevention Act re- supervising independent oversight of and a bipartisan group of Senators in quires the Substance Abuse and Mental FBI programs and operations until an effort to shore up our national com- Health Services Administration to give September 30, 2004, and submitting to mitment to the demand reduction com- priority in the award of grants to com- Congress a plan for FBI oversight. ponent of our national drug control munities that have taken measures to The legislation also assists our ongo- strategy. combat club drug use, including pass- ing war against terrorism. It estab- Each year, drug abuse exacts an ing ordinances restricting ‘‘rave lishes in the U.S. Treasury a Counter- enormous toll on our nation. I am in- clubs,’’ increasing law enforcement on terrorism Fund to reimburse DOJ for creasingly alarmed that the drug epi- ecstasy, and seizing lands under nui- certain counter-terrorism activities demic in America continues to worsen, sance abatement laws to prevent the and Federal departments or agencies with more of our youth experimenting abuse of ecstasy. It requires the Office for the cost of detaining accused ter- with and becoming addicted to illegal of National Drug Control Policy to use rorists in foreign countries. drugs. According to recent national High Intensity Drug Trafficking Area The bill enhances the privacy rights surveys, youth drug use, particularly funds to combat trafficking in ecstasy, of law-abiding Americans by directing use of so-called ‘‘club drugs,’’ such as and ensures that drug prevention the Attorney General and the FBI Di- Ecstasy and GHB, tragically is again media campaigns include efforts at pre- rector to report on their use the DCS on the rise. Over the past two years, venting ecstasy abuse. These provi- 1000, or ‘‘Carnivore’’ surveillance sys- use of ecstasy among 12th graders in- sions are extremely important to ad- tem. The report will include the num- creased dramatically. Hearings I held dress the rising threat of ecstasy use ber of times the system was used for last year in Utah highlighted the ex- among the young people in our society. surveillance during the preceding year, tent the drug problem pervades not Mr. President, not surprisingly, this the persons who approved its use, the just our major cities, but our entire comprehensive legislation has broad criteria applied to requests for its use, country. support not only from my colleagues, and any information gathered or This dangerous trend is not going to but also from law enforcement, com- accessed that was not authorized by reverse course unless we attack the munity groups, and treatment organi- the court to be gathered or accessed. drug abuse problem from all angles. I zations. This is truly bipartisan legis- Many concerns have been raised about agree fully with President Bush that lation that we all agree will do a great the use of this system, and it is my while we must remain steadfast in our deal of good. I again want to thank my hope that the reporting requirement commitment to enforcing our criminal colleagues for passing this legislation will provide policymakers with valu- laws against drug trafficking and use, today. I yield the floor. Mr. REID. Mr. President, I ask unan- able information and encourage De- the time has come to invest in demand imous consent that the Leahy-Hatch partment to use the system respon- reduction programs that have been amendment, which is at the desk, be sibly. proven effective. Only through such a agreed to, the committee substitute The bill amends the Omnibus Crime balanced approach can we fully remove amendment, as amended, be agreed to, Control and Safe Streets Act of 1968 to the scourge of drugs from our society. establish within the Department of The provisions of this bill provide the act, as amended, be read a third Justice a Violence Against Women Of- tools that will make a difference in the time and passed, and the motion to re- fice. With this amendment, the Direc- fight against drug abuse. It has broad, consider be laid on the table, and that tor of the Office currently—Diane Stu- bipartisan support on Capitol Hill, as any statements relating thereto be art—will: (1) serve as special counsel to well as the support of numerous distin- printed in the RECORD; further, that the Attorney General on the subject of guished law enforcement groups, in- the Senate insist on its amendment violence against women; (2) maintain a cluding the Fraternal Order of Police and request a conference with the liaison with the judicial branches of and the National Sheriff’s Association. House on the disagreeing votes of the the Federal and State governments on Several mainstream prevention and two Houses, and the Chair be author- related matters; (3) provide informa- treatment organizations have also ized to appoint conferees on the part of tion to the Federal, State and local voiced their support for the bill, in- the Senate. The PRESIDENT pro tempore. With- governments and the general public on cluding the Phoenix House, the Na- out objection, it is so ordered. related matters; (4) upon request, serve tional Crime Prevention Council, and The amendment (No. 2697) was agreed as the DOJ representative on domestic the Community Anti-Drug Coalitions to. task forces, committees, or commis- of America. (The text of the amendment is print- This title is similar to S. 1315, the sions addressing related policies or ed in today’s RECORD under ‘‘Amend- issues and as the U.S. Government rep- Judicial Improvement and Integrity ments Submitted and Proposed.’’) resentative on human rights and eco- Act of 2001, which I introduced with The committee amendment in the nomic justice matters related to vio- Senator LEAHY to protect witnesses nature of a substitute, as amended, was lence against women in international who provide information on criminal agreed to. forums; (5) carry out DOJ functions activity to law enforcement officials The bill (H.R. 2215), as amended, was under the Violence Against Women Act by increasing maximum sentences and passed. of 1994 and other DOJ functions on re- other improvements to the criminal The PRESIDENT pro tempore ap- lated matters; and (6) provide technical code. pointed Mr. LEAHY, Mr. KENNEDY, and assistance, coordination, and support The legislation contains provisions Mr. HATCH conferees on the part of the to other elements of DOJ and to other from the Professional Standards for Senate. Federal, State, and tribal agencies in Government Attorneys Act of 2001 that Mr. REID. Mr. President, I ask unan- efforts to develop policy and to enforce will allow Government attorneys, for imous consent the Senate proceed to Federal laws relating to violence the purpose of conducting terrorism in- the immediate consideration of H.R. against women. vestigations, to provide legal advice, 3447. The legislation authorizes Depart- authorization, concurrence, direction, The PRESIDENT pro tempore. The ment of Justice grants to establish or supervision on conducting covert ac- clerk will report the bill by title.

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00303 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S14076 CONGRESSIONAL RECORD — SENATE December 20, 2001 The legislative clerk read as follows: care and long-term care. I thank J. grams. These changes are intended to A bill (H.R. 3447) to amend title 38, United David Cox, R.N. from the American improve the programs by providing ad- States Code, to enhance the authority of the Federation of Government Employees ditional flexibility to recipients. Secretary of Veterans Affairs to recruit and for eloquently demonstrating the need In the Upper Midwest, the special retain qualified nurses for the Veterans for this critical provision at our June skills of nurses and nurse practitioners Health Administration, to provide an addi- hearing. are being recognized in clinics that tional basis for establishing the inability of veterans to defray expenses of necessary Because mandatory overtime was fre- provide supportive care close to the medical care, to enhance certain health care quently cited at the Committee’s June veterans who need it. The legislation programs of the Department of Veterans Af- hearing as being of serious concern, the before us seeks to encourage more fairs, and for other purposes. legislation also includes a requirement nurse-managed clinics and also in- There being no objection, the Senate that the Secretary report to the House cludes a requirement that VA evaluate proceeded to consider the bill. and Senate Committees on Veterans’ these clinics. Mr. ROCKEFELLER. Mr. President, Affairs on the use of overtime by li- The legislation before us would as Chairman of the Committee on Vet- censed nursing staff and nursing assist- amend the treatment of part-time serv- erans’ Affairs, I urge prompt Senate ants in each facility. This is a critical ice performed by certain title 38 em- passage of H.R. 3447, the Department of first step in determining what can be ployees prior to April 7, 1986, for pur- Veterans Affairs Health Care Programs done to reduce the amount of manda- poses of retirement credit. Currently, Enhancement Act of 2001. This bill tory overtime. part-time service performed by title 5 passed the House on December 11, 2001, In terms of providing sufficient pay, employees prior to April 7, 1986, is and our action will clear the measure the pending legislation mandates that treated as full-time service; however, for the President’s signature. This bill VA provide Saturday premium pay to title 38 employees’ part-time services reflects a compromise agreement that certain health professionals. This prior to April 7, 1986, is counted as the Senate and House Committees on group of professionals includes licensed part-time service and therefore results Veterans’ Affairs have reached on a practical nurses (LPN’s), certified or in lower annuities for these employees. number of health-related bills consid- registered respiratory therapists, li- In order to rectify this, the pending ered in the Senate and House during censed physical therapists, licensed vo- measure exempts registered nurses, the 107th Congress, including: a bill to cational nurses, pharmacists, and occu- physician assistants, and expanded- help VA respond to the looming nurse pational therapists. These workers are function dental auxiliaries from the re- crisis; a bill to extend health care for known as ‘‘hybrids’’ as they straddle quirement that part-time service per- Persian Gulf War veterans; and a bill two different personnel authorities—ti- formed prior to April 7, 1986, be pro- to improve specialized treatment and tles 38 and 5 of the United States Code. rated when calculating retirement an- rehabilitation for disabled veterans. Hybrid status allows for direct hiring nuities. The centerpiece of this bill are provi- and a more flexible compensation sys- Although the nursing crisis has not sions to improve recruitment and re- tem. yet reached its projected peak, the tention of VA nurses. On June 14, 2001, This is an issue of equity, especially shortage is already endangering pa- the Committee on Veterans’ Affairs for LPN’s who work alongside other tient safety in the areas of critical and held a hearing to explore reasons for nurses on Saturdays. When LPN’s who long-term care, where demands on the imminent shortage of professional do not receive Saturday premium pay nurses are greatest. We must encour- nurses in the United States and how must work together with registered age higher enrollment in nursing this shortage will affect health care for nurses (RN’s) who do, poor morale in- schools, improve the work environ- veterans served by Department of Vet- evitably results. Being aware of the ment, and offer nurses opportunities to erans Affairs’ health care facilities. looming nurse shortage, we should be develop as respected professionals, Several registered nurses, including doing all we can to improve VA’s abil- while taking steps to ensure safe staff- Sandra McMeans from my state of ity to recruit and retain these care- ing levels in the short-term. West Virginia, testified before the givers. In addition to the many important Committee that unpredictable and dan- Currently, hospital directors have changes for nurses, this bill also con- gerously long working hours lead to the discretion to provide Saturday pre- tains other significant health care pro- nurses’ fatigue and frustration—and mium pay. But of the 17,000 hybrid em- visions. For example, the legislation patient care suffers. ployees, 8,000 are not receiving the pay would enable the Department of Vet- Following this hearing, I joined with premium. erans Affairs to allow hearing-impaired Senators SPECTER and CLELAND to in- I believe this change in law will veterans and veterans with spinal cord troduce the Department of Veterans make pay more consistent and fair for injury or dysfunction, in addition to Affairs Nurse Recruitment and Reten- our health care workers. There are blind veterans, to obtain service dogs tion Enhancement Act of 2001, S. 1188. other VA health care employees who to assist them with everyday activi- This bill was included in full in S. 1188 are employed under the title 5 per- ties. as reported on October 10, 2001, the De- sonnel system who are not affected by This bill would also establish a VA partment of Veterans Affairs Medical this change. But since the title 5 sys- chiropractic program in each of the Programs Enhancement Act of 2001, tem is not under the Veterans’ Affairs VA’s health care networks. A chiro- and all of the provisions are now in- Committee jurisdiction, we were not practic advisory committee will be es- cluded in H.R. 3447. able to address Saturday pay for these tablished for the purpose of advising I will highlight a number of the pro- workers. However, because of concerns the Secretary in the development and visions included in the pending meas- about those workers, I pledge to work implementation of the chiropractic ure and refer my colleagues to the with my colleagues on other commit- program. The Secretary will provide joint explanatory statement on the leg- tees to provide other title 5 workers protocols governing referrals, direct islation which I will insert at the end with Saturday premium pay. access, chiropractic scope of practice, of my remarks, for more detail. Programs initiated within VA to im- and definition of chiropractic services, The legislation before us includes a prove conditions for nurses and pa- which will be available to all veterans requirement that VA produce a policy tients have focused on issues other enrolled in the VA health care system. on staffing standards in VA health care than staffing ratios, pay, and hours. A I thank our Majority Leader, Senator facilities. Such a policy shall be devel- highly praised scholarship program DASCHLE, for his leadership in shaping oped in consultation with the VA that I spearheaded in 1998 allows VA this new landmark chiropractic pro- Under Secretary for Health, the Direc- nurses to pursue degrees and training gram within the Department of Vet- tor of VA’s National Center for Patient in return for their service, thus encour- erans Affairs. Safety, and VA’s Chief Nurse. While it aging professional development and Another important provision of this is up to VA to develop the standards, improving the quality of health care. bill would help ‘‘near poor’’ veterans the policy must consider the numbers Included within the legislation before living in high cost-of-living areas, by and skill mix required of staff in spe- us are modifications to the existing significantly reducing VA copayments cific medical settings, such as critical scholarship and debt reduction pro- for hospital inpatient care. For those

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00304 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S14077 veterans whose family incomes fall be- tified or registered respiratory therapists, on October 10, 2001, as proposed to be amend- tween the VA’s current means test physical therapists, and occupational thera- ed by a manager’s amendment [hereinafter, level and the Department of Housing pists. ‘‘Senate Bill’’]; S. 1576, a bill to amend sec- Staffing Standards and Mandatory Over- and Urban Development low income tion 1710 of title 38, United States Code, to time: Requires VA to develop a nationwide extend the eligibility for health care of vet- index for the area of their primary resi- policy on staffing standards to ensure that erans who served in Southwest Asia during dence, the current inpatient copay- veterans are provided with safe and high the Persian Gulf War; and, S. 1598, a bill to ments would be reduced by 80 percent. quality care, taking into consideration the amend section 1706 of title 38, United States This is a significant step in reducing numbers and skill mix required of staff in Code, to enhance the management of the pro- the inequities imposed on those vet- specific medical settings. Requires a report vision by the Department of Veterans Affairs erans in high cost-of-living areas. on the use of mandatory overtime by li- of specialized treatment and rehabilitation Another very important provision of censed nursing staff and nursing assistants for disabled veterans, and for other purposes, in each facility. The report would include a this bill authorizes $28.3 million for a introduced on October 21, 2001. description of the amount of mandatory The House and Senate Committees on Vet- much needed repair project at the overtime used by facilities. erans’ Affairs have prepared the following Miami VA medical center. Three years Subtitle C—Other Nursing Authorities explanation of the compromise bill, H.R. 3447 ago there was a devastating fire that Retirement Annuities for RNs, PAs, and (hereinafter referred to as the ‘‘Compromise destroyed the electrical plant at the Others: Exempts registered nurses, physician Agreement’’). Differences between the provi- medical center, and this project is des- assistants, and expanded-function dental sions contained in the Compromise Agree- perately needed. auxiliaries from the requirement that part- ment and the related provisions in the bills As has been the case in previous time service performed prior to April 7, 1986, listed above are noted in this document, ex- years and is particularly important in be prorated when calculating retirement an- cept for clerical corrections and conforming nuities. changes made necessary by the Compromise light of our country’s current military Agreement, and minor drafting, technical, Subtitle D—National Commission on VA actions, this legislation truly rep- and clarifying changes. Nursing resents a bipartisan commitment to TITLE I—ENHANCEMENT OF NURSE RE- Establishes a 12-member Commission on our Nation’s veterans. I particularly CRUITMENT AND RETENTION AU- VA Nursing that would assess legislative and recognize the hard work of Kim Lipsky THORITIES organizational policy changes to enhance the and Mickey Thursam of the Demo- recruitment and retention of nurses by the Subtitle A—Nurse Recruitment Authorities cratic staff of the Committee on Vet- Department, and the future of the nursing Current Law erans’ Affairs; Bill Cahill of the Repub- profession within the Department, and rec- Several VA programs under existing law lican staff of the Committee; Tamera ommend legislative and organization policy are designed to aid the Department in re- Jones of Senator CLELAND’s staff, and changes to enhance the recruitment and re- cruiting qualified health care professionals John Bradley, Kimberly Cowins, and tention of nurses in the Department. in fields where scarcity and high demand Susan Edgerton of the House Veterans’ TITLE II—OTHER MATTERS produce competition with the private sector. Affairs Committee in seeing this bill Service Dogs: Authorizes VA to provide The Department is authorized to operate the through the legislative process. certain disabled veterans with service dogs Employee Incentive Scholarship Program In conclusion, I believe that this bill to assist them with everyday activities. (hereafter EISP) under section 7671 of title 38, United States Code. Under the EISP, VA represents a real step forward for vet- Means Test: Retains the current-law means test national income threshold and may award scholarship funds, up to $10,000 erans and for the health care system maintains current allocation methodology per year per participant in full-time study, which veterans turn to for care. I urge (known as VERA), but will reduce copay- for up to 3 years. These scholarships require my colleagues to support this impor- ments by 80% for near-poor veterans who re- eligible participants to reciprocate with pe- tant piece of health care legislation for quire acute VA hospital inpatient care. riods of obligated service to the Department. our veterans. Chiropractic Care: Establishes a program Currently, enrollment in the scholarship pro- I ask unanimous consent that the of chiropractic services in VA healthcare fa- gram is limited to employees with 2 or more text of the compromise agreement and cilities in each of the Veterans Integrated antecedent years of VA employment. Statu- tory authority for this program terminates a joint explanatory statement on the Service Networks and requires VA to provide training and educational materials on chiro- December 31, 2001. bill be printed in the RECORD. practic services to VA health care providers. The Department is authorized to operate There being no objection, the mate- Also creates an advisory committee to over- the Education Debt Reduction Program rial was ordered to be printed in the see the implementation of this provision. (hereafter EDRP) under section 7681 of title RECORD, as follows: Clinical Research Oversight Funding: Au- 38, United States Code. Under the EDRP, the Department may repay education-related SUMMARY—DEPARTMENT OF VETERANS AF- thorizes VA to fund its field Offices of Re- loans incurred by recently hired VA clinical FAIRS HEALTH CARE PROGRAMS ENHANCE- search Compliance and Assurance from the professionals in high demand positions. Stat- MENT ACT OF 2001 Medical Care appropriation, rather than from the research budget. utory authority for this program, a program The bill, H.R. 3447, passed the House on De- Emergency Construction Project for the not yet implemented by the Department, cember 11, 2001, and reflects a compromise Miami VA Hospital: Authorizes a $28,300,000 terminates on December 31, 2001. If imple- agreement stemming from S. 1188, the ‘‘De- emergency electrical project. mented, the program would authorize VA to partment of Veterans Affairs Nurse Recruit- Health Care for Persian Gulf War Veterans: repay $6,000, $8,000, and $10,000 per year, re- ment and Retention Act of 2001’’, as origi- Extends VA’s authority to provide health spectively, over a 3-year period, in combined nally introduced; S. 1160; S. 1221; and H.R. care for those who served in the Persian Gulf principal and interest on educational loans 2792. until December 31, 2002. obtained by scarce VA professionals. SUMMARY OF PROVISIONS JOINT EXPLANATORY STATEMENT Under sections 8344 and 8468 of title 5, The following is a summary of the provi- The ‘‘Department of Veterans Affairs United States Code, the Department is au- sions in the Proposed ‘‘Department of Vet- Health Care Programs Enhancement Act of thorized to request waivers of the pay reduc- erans Affairs Health Care Programs En- 2001’’ reflects a compromise agreement that tion otherwise required by law for re-em- hancement Act of 2001’’: the Senate and House of Representatives ployed Federal annuitants who are recruited TITLE I— ENHANCEMENT OF NURSE RE- Committees on Veterans’ Affairs reached on to the Department in order to meet staffing CRUITMENT AND RETENTION AU- certain provisions of a number of bills con- needs in scarce health care specialties. THORITIES sidered by the House and Senate during the Senate Bill Subtitle A—Recruitment Authorities 107th Congress, including: H.R. 2792, a bill to Section 111 would permanently authorize make service dogs available to disabled vet- the EISP; reduce the minimum period of em- Employee Incentive Scholarship and Edu- erans and to make various other improve- ployment for eligibility in the program from cation Debt Reduction Programs: Enhances ments in health care benefits provided by the 2 years to 1 year; remove the award limit for eligibility and benefits for the programs by Department of Veterans Affairs, and for education pursued during a particular school enabling nurses to pursue advanced degrees other purposes, by the House Committee on year by a participant, as long as the partici- while continuing to care for patients, in Veterans’ Affairs on October 16, 2001, and pant had not exceeded the overall limitation order to improve recruitment and retention passed by the House on October 23, 2001 of the equivalent of 3 years of full-time edu- of nurses within the VA health care system. [hereinafter, ‘‘House Bill’’]; S. 1188, a bill to cation; and, extend authority to increase the Subtitle B—Retention Authorities enhance the authority of the Secretary of award amounts based on Federal national Saturday Premium Pay: Mandates that VA Veterans’ Affairs to recruit and retain quali- comparability increases in pay. provide Saturday premium pay to title 5/ fied nurses for the Veterans Health Adminis- Section 112 would permanently authorize title 38 hybrids. Such hybrids include li- tration, and for other purposes, reported by the EDRP; expand the list of eligible occupa- censed practical nurses, pharmacists, cer- the Senate Committee on Veterans’ Affairs tions furnishing direct patient care services

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00305 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S14078 CONGRESSIONAL RECORD — SENATE December 20, 2001 and services incident to such care to vet- proved by the Secretary to VA’s nurse quali- Senate Bill erans; extend the number of years to 5 that fication standards. Such reports would in- Section 131 would amend section 7306(a)(5) a Departmental employee may participate in clude the number of waivers requested and of title 38, United States Code, to elevate the the EDRP, and increase the gross award granted to permit promotion of nurses who office of the VA Nurse Executive by requir- limit to any participant to $44,000, with the do not have baccalaureate degrees in nurs- ing that official to report directly to the VA award payments for the fourth and fifth ing, and other pertinent information. Under Secretary for Health. years to a participant limited to $10,000 in Section 126 would require the Department Section 132 would amend section 7426 of each; and provide limited authority (until to report facility-specific use of mandatory title 38, United States Code, to exempt reg- June 30, 2002) for the Secretary to waive the overtime for professional nursing staff and istered nurses, physician assistants, and ex- eligibility requirement limiting EDRP par- nursing assistants during 2001. The Depart- panded-function auxiliaries from the require- ticipation to recently appointed employees ment has no nationwide policy on the use of ment that part-time service performed prior on a case-by-case basis for individuals ap- mandatory overtime. This report would be to April 7, 1986, be prorated when calculating pointed on or after January 1, 1999, through required within 180 days of enactment. The retirement annuities. December 30, 2001. report would include information on the Section 133 would modify the nurse local- Section 113 would require the Department amount of mandatory overtime paid by VA ity-pay authorities and reporting require- to report to Congress its use of the authority health care facilities, mechanisms employed ments. The section would clarify and sim- in title 5, United States Code, to request to monitor overtime use, assessment of any plify a VA medical center’s use of Bureau of waivers of pay reduction normally required ill effects on patient care, and recommenda- Labor Statistics (BLS) information to facili- from re-employed Federal annuitants, when tions on preventing or minimizing its use. tate locality-pay decisions for VA nurses. such requests are used to meet its nurse House Bill Additionally, section 133 would clarify the staffing requirements. The House bill has no comparable provi- Committees’ intent on steps VA facilities would take when certain BLS date were un- House Bill sions. Compromise Agreement available, thus serving as a trigger for the The House bill has no comparable provi- use of third-party survey information, and sions. Sections 121, 122, 123, 124, 125, and 126 are thereby reducing current restrictions on the identical to the provisions in the Senate bill. use of such surveys. Compromise Agreement The Committees are concerned about VA’s Section 101, 102, and 103 follow the Senate current national policy requiring VA nurses House Bill language. to achieve baccalaureate degrees as one The House bill contains no comparable pro- Subtitle B—Nurse Retention Authorities means of quality assurance. VA has issued visions. Current Law directive 5012.1, a directive that requires Compromise Agreement VA’s registered nurses to obtain bacca- Section 131, 132, and 133 follow the Senate Section 7453(c) of title 38, United States laureate degrees in nursing as a precondition bill. Code, guarantees premium pay (at 25 percent to advancement beyond entry level, and to over the basic pay rate) to VA registered Subtitle D—National Commission on VA do so by 2005. This policy is effective imme- Nursing nurses who work regularly scheduled tours diately for newly employed nurses. of duty during Saturdays and Sundays. How- At a time of looming crisis in achieving Current Law ever, licensed vocational nurses and certain adequacy of basic clinical staffing of VA fa- None. health care support personnel, whose em- cilities, the Committees express concern House Bill ployment status is grounded in employment over whether such a policy guiding nurse Section 301 would establish a 12-member authorities in title 5 and title 38, United qualifications may work against VA’s inter- National Commission on VA Nursing. The States Code, are eligible for premium pay on ests and responsibilities to protect the safety Secretary would appoint eleven members, regularly scheduled tours of duty that in- of its patients by creating unintended short- and the Nurse Executive of the Department clude Sundays. Saturday premium pay for ages of scarce health personnel. The Com- would serve as the twelfth, ex officio, mem- these employees is a discretionary decision mittees urge the Secretary to consider the ber. Members would include three recognized at individual medical facilities. implications of continuing such a policy in representatives of employees of the Depart- At retirement, VA registered nurses en- the face of future shortages of nursing per- ment; three representatives of professional rolled in the Civil Service Retirement Sys- sonnel. The American Association of Com- associations of nurses or similar organiza- tem receive annuity credit for unused sick munity Colleges has reported that, each tions affiliated with the Department’s health leave. This credit is unavailable, however, year, more than 60 percent of new US reg- care practitioners; two representatives of for registered nurses who retire under the istered nurses are produced in two-year asso- trade associations representing the nursing Federal Employee Retirement System. ciate degree programs. The Department’s profession; two would be nurses from nursing Senate Bill current qualification standard for registered schools affiliated with the Department; and Section 121 would mandate that VA pro- nurses may dissuade these fully licensed one member would represent veterans. The vide Saturday premium pay to employees health care professionals from considering Secretary would designate one member to specified in Section 7454(b). VA employment. serve as Chair of the Commission. Section 302 would authorize the Commis- Section 122 would extend authority for the Subtitle C—Other Authorities sion to assess legislative and organization Department to provide VA nurses enrolled in Current Law policy changes to enhance the recruitment the Federal Employee Retirement System Section 7306(a)(5) of title 38, United States and retention of nurses by the Department the equivalent sick-leave credit in their re- Code, requires that the Office of the Under and the future of the nursing profession tirement annuity calculations that is pro- Secretary for Health include a Director of within the Department. This section would vided to other VA nurses who are enrolled in Nursing Service, responsible to the Under also provide for Commission recommenda- the Civil Service Retirement System. Secretary for Health. tions on legislation and policy changes to en- Section 123 would require the Department Section 7426 of title 38, United States Code, hance recruitment and retention of nurses to evaluate nurse-managed clinics, including provides retirement rights for, among oth- by the Department. those providing primary and geriatric care ers, nurses, physician assistants and ex- Section 303 would require the Commission to veterans. Several nurse-managed clinics panded-function dental auxiliaries with part- to submit to Congress and the Secretary a are in operation throughout the VA health time appointments. These employees’ retire- report on its findings and conclusions. The care system, with a preponderance of clinics ment annuities are calculated in a way that report would be due not later than 2 years operating in the Upper Midwest Health Care produces an unfair loss of annuity for them after the date of the first meeting of the Network. The evaluation would include in- compared to other Federal employees. Con- Commission. The Secretary would be re- formation on patient satisfaction, provider gress has made a number of efforts since 1980 quired to promptly consider the Commis- experiences, cost, access and other matters. to provide equity for this group, many mem- sion’s report and submit to Congress the De- The Secretary would be required to report bers of whom are now retired. These individ- partment’s views on the Commission’s find- results from this evaluation to the Commit- uals, appointed to their part-time VA posi- ings and conclusions, including actions, if tees on Veterans’ Affairs 18 months after en- tions prior to April 6, 1986, under the employ- any, that the Department would take to im- actment. ment authority of title 38, United States plement the recommendations. Section 124 would require the Department Code, have been penalized with lower annu- Sections 304 and 305 would delineate the to develop a nationwide clinical staffing ities by subsequent Acts of Congress that ad- powers afforded to the Commission, includ- standards policy to ensure that veterans are dressed retirement annuity calculation rules ing powers to conduct hearings and meet- provided with safe and high quality care. for other part-time Federal employees ap- ings, take testimony and obtain information Section 8110 of title 38, United States Code, pointed under the authority of title 5, United from external sources, employ staff, author- sets forth the manner in which medical fa- States Code. ize rates of pay, detail other Federal employ- cilities shall be operated, but does not in- Section 7251 of title 38, United States Code, ees to the Commission staff, and address clude reference to staffing levels for such op- authorizes the directors of VA health care other administrative matters. eration. facilities to request adjustments to the min- Section 306 would terminate the Commis- Section 125 would require the Secretary to imum rates of basic pay for nurses based on sion 90 days after the date of the submission submit annual reports on exceptions ap- local variations in the labor market. of its report to Congress.

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00306 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S14079 Senate Bill graphically adjusted income thresholds for ical programs for veterans by requiring the The Senate bill has no comparable provi- determining a non-service-connected vet- Department of each of its Veterans Inte- sions. eran’s priority for VA care, and therefore, grated Service Networks to maintain capac- Compromise Agreement whether the veteran must agree to make co- ity in certain specialized health care pro- payments in order to receive VA care. The Sections 141, 142, 143, 144, 145 and 146 follow grams for veterans (those with serious men- section’s purpose would be to address local the House bill, with certain modifications to tal illness, substance-use disorders, spinal variations in cost of care, cost-of-living or cord injuries and dysfunction, the brain in- the membership of the Commission. other variables that, beyond gross income, The Committees expect the National Com- jured and blinded, and those who need pros- impinge on a veteran’s relative economic mission on VA Nursing to concern itself with thetics and sensory aides); and, would extent status and ability to defray the cost of care. the full spectrum of occupations involved in the capacity reporting requirement for 3 In section 103, low-income limits adminis- years. nursing care of veterans in the Veterans tered by the Department of Housing and Senate Bill Health Administration, with specific ref- Urban Development (HUD) for its subsidized erence to registered professional and li- housing programs would establish an ad- S. 1598 similarly would modify current law censed vocational nurses, clinical nurse spe- justed poverty-income threshold to be used with regard to VA’s capacity for specialized cialists, nurse practitioners, nurse managers in the ability-to-defray determination. The services, but would require that medical cen- and executives, nursing assistants, and other actual threshold for determining an indi- ters maintain capacity, in addition to geo- technical and ancillary personnel of the De- vidual veteran’s ability to pay would be the graphic service areas; require that VA utilize partment involved in direct health care de- greater of the current-law income threshold uniform standards in the documentation of livery to the nation’s veterans. In addition in section 1722 of title 38, United States patient care workload used to construct re- to statutory requirements, the Committees Code, or the local low-income limits set by ports under the authority; require the In- expect the Secretary to appoint members to HUD. spector General on an annual basis to audit the Commission to reflect the wide variety Section 103 also would include a 5-year lim- each geographic service area and each med- of occupations and disciplines that con- itation on the effects of adoption of the HUD ical center in the Veterans Health Adminis- stitute the nursing profession within the De- low-income limits policy on system resource tration to ensure compliance with capacity partment. allocation within the Veterans Health Ad- limitations; and, prohibit VA from sub- TITLE II—OTHER MATTERS ministration. Such allocations would not be stituting health care outcome data to satisfy PROVISION OF SERVICE DOGS increased or decreased during the period by the requirement for maintenance of capac- Current Law more than 5 percent due to this provision. ity. None. The provision would take effect on October 1, Compromise Agreement 2002. House Bill Section 203 is derived substantially from Senate Bill Section 101 would amend section 1714 of the House bill, with addition of provisions title 38, United States Code, to authorize the Section 202 would amend section 1722 of from the Senate bill, including a require- Department to provide service dogs to vet- title 38, United States Code, to include the ment that VA utilize uniform standards in HUD income index in determining eligibility erans suffering from spinal cord injury or the documentation of workload; a clarifica- for treatment as a low-income family based dysfunction, other diseases causing physical tion that ‘‘mental illness’’ be defined to in- upon the veteran’s permanent residence. The immobility, or hearing loss (or other types of clude post-traumatic stress disorder (PTSD), current national threshold would remain in disabilities susceptible to improvement or substance-use disorder, and seriously and place as the base figure if the HUD formula enhanced functioning) for which use of serv- chronically mentally ill services; a prohibi- determines the low-income rate for a par- ice dogs is likely to improve or enhance their tion from substituting outcome data to sat- ticular area is actually less than that ability to perform activities of daily living isfy the requirement to maintain capacity; amount. The effective date of this change or other skills of independent living. Under and, a requirement that the IG audit and would be January 1, 2002, and would apply to the provision, a veteran would be required to certify to Congress as to the accuracy of all means tests after December 31, 2001, using VA’s required reports. be enrolled in VA care under section 1705 of data from the HUD index at the time the PROGRAM FOR THE PROVISION OF CHIROPRACTIC title 38, United States Code, as a prerequisite means test is given. to eligibility. Service dogs would be provided CARE AND SERVICES TO VETERANS Compromise Agreement in accordance with existing priorities for VA Current Law Section 202 retains the current-law income health care enrollment. Public Law 106–117 requires the VA to es- threshold, but would significantly reduce co- Senate Bill tablish a Veterans Health Administration- payments from veterans near the threshold wide policy regarding chiropractic care. Vet- Section 201 would authorize the Secretary of poverty for acute VA hospital inpatient erans Health Administration Directive 2000– to provide service dogs to service-connected care. The HUD low-income limits would be 014, dated May 5, 2000, established such a pol- veterans with hearing impairments and with used to establish a family income determina- icy. spinal cord injuries. tion within the priority 7 group. Those vet- Compromise Agreement erans with family incomes above the HUD House Bill Section 201 follows the House provision. income limits for their primary residences Title II would establish a national VA Any travel expenses of the veteran in ad- would pay the co-payments as otherwise re- chiropractic services program, implemented justing to the service dog would be reimburs- quired by law. Veterans whose family in- over a 5-year period; authorize VA to employ able on the same basis as such expenses are comes fall between the current income chiropractors as federal employees and ob- reimbursed under Section 111, title 38, threshold level under section 1722, title 38, tain chiropractic services through contracts; United States Code, for blind veterans ad- United States Code, and the HUD income establish an advisory committee on chiro- justing to a guide dog. limits level for the standard metropolitan practic care; authorize chiropractors to func- MANAGEMENT OF HEALTH CARE FOR CERTAIN statistical area of their primary residences, tion as VA primary care providers; authorize LOW-INCOME VETERANS would be required to pay co-payments for in- the appointment of a director of chiropractic Current Law patient care that are reduced by 80 percent service reporting to the Secretary with the Section 1722(a) of title 38, United States from co-payments required of veterans with same authority as other service directors in Code, places veterans whose incomes are higher incomes. The effective date for this the VA health care system; and provide for below a specified level—in calendar year change would be October 1, 2002. training and materials relating to chiro- 2001, $23,688 for an individual without de- MAINTENANCE OF CAPACITY FOR SPECIALIZED practic services to Department health care pendents—within the definition of a person TREATMENT AND REHABILITATIVE NEEDS OF providers. who is ‘‘unable to defray’’ the cost of health DISABLED VETERANS Senate Bill care. The section includes two other such in- Current Law Section 204 of the Senate Bill would estab- dicators of inability to defray: evidence of Section 1706 of title 38, United States Code, lish a VA chiropractic services program in eligibility for Medicaid, and receipt of VA requires VA to maintain nationwide capacity VA health care facilities and clinics in not nonservice-connected pension. Veterans in to provide for specialized treatment and re- less than 25 states. The chiropractic care and these circumstances are adjudged equally habilitative needs of disabled veterans, in- services would be for neuro-musculoskeletal unable to defray the costs of health care; as cluding those with amputations, spinal cord conditions, including subluxation complex. such, they are eligible to receive comprehen- injury or dysfunction, traumatic brain in- The VA would carry out the program sive VA health care without agreeing to jury, and severe, chronic, disabling mental through personal service contracts and ap- make co-payments required from veterans illnesses. To validate VA’s compliance with pointments of licensed chiropractors. Train- whose incomes are higher. Under current capacity maintenance, section 1706 includes ing and materials would be provided to VA law, a single-income threshold (with adjust- a requirement for an annual report to Con- health care providers for the purpose of fa- ments only for dependents) is the standard gress. The reporting requirement expired on miliarizing them with the benefits of chiro- used. April 1, 2001. practic care and services. House Bill House Bill Compromise Agreement Section 103 would amend section 1722(a) of Section 102 would modify the mandate for Section 204 would follow the Senate bill title 38, United States Code, to establish geo- VA to maintain capacity in specialized med- but would replace its reference to 25 states

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00307 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S14080 CONGRESSIONAL RECORD — SENATE December 20, 2001 with a reference to VA’s 22 Veterans Inte- Compromise Agreement Compromise Agreement grated Service Networks (referred to as ‘‘ge- Section 207 contains a Sense of the Con- Section 209 follows the House bill. ographic service areas’’ in the section). Also, gress Resolution on the Department’s need PERSONAL EMERGENCY RESPONSE SYSTEM FOR the agreement would include an advisory to assess and report on special telephone VETERANS WITH SERVICE-CONNECTED DISABIL- committee to assist the Secretary of Vet- services for veterans. ITIES erans Affairs in implementation of the chiro- RECODIFICATION OF BEREAVEMENT COUNSELING practic program. Under the agreement, the Current Law AUTHORITY AND CERTAIN OTHER HEALTH-RE- advisory committee would expire 3 years None. LATED AUTHORITIES from enactment. Current Law House Bill FUNDS FOR FIELD OFFICES OF THE OFFICE OF Chapter 17 of title 38, United States Code, Section 107 of the House bill would require RESEARCH COMPLIANCE AND ASSURANCE (ORCA) contains various legal authorities under the Secretary to carry out an evaluation and Current Law which VA provides services to non-veterans. study of the feasibility and desirability of The Under Secretary of Health has pro- These provisions, that authorize bereave- providing a specialized personal emergency vided funding for ORCA field offices from ment and mental health counseling, care for response system for veterans with service- funds appropriated for Medical and Pros- research subjects, care for dependents and connected disabilities. It would require a re- thetic Research. survivors of permanently the totally dis- port to Congress on the results of this eval- Senate Bill abled veterans, and emergency humanitarian uation. Since field offices of ORCA directly protect care, are intermingled with authorities for Senate Bill patient safety, section 205 would authorize the care of veterans in various sections of The Senate bill contains no comparable VA to fund them from the Medical Care ap- chapter 17. provision. propriation. House Bill Compromise Agreement House Bill Section 105 of the House bill would in a Section 210 follows the House bill. The House bill has no comparable provi- new subchapter consolidate and reorganize sion. without substantive change all of the legal HEALTH CARE FOR PERSIAN GULF WAR VETERANS Compromise Agreement authorities under which VA provides services Current Law Section 205 follows the Senate bill. to non-veterans. It would reorganize section The Committees are concerned about the 1701 of title 38, United States Code, by trans- Section 1710 of title 38, United States Code, need for ORCA to maintain independence ferring one provision (pertaining to sensori- defines eligible veterans for whom the Sec- from the Office of Research and Develop- neural aids) to section 1707. retary is required to furnish hospital, nurs- ment. The Committees have concluded, on Section 105 would create a new Subchapter ing home, and domiciliary care. Section the strength of hearings and reports on po- VIII in Chapter 17 of title 38, United States 1710(e)(1)(C) of title 38 authorizes the Sec- tential conflicts of interest, that funding for Code, to incorporate provisions concerning retary to provide health care services on a ORCA field offices should be statutorily sep- bereavement-counseling services for family priority basis to veterans who served in the arated from the Medical and Prosthetic Re- members of certain veterans and active duty Southwest Asia Theater of operations during search Appropriation and associated with personnel. A new section 1782 would provide the Persian Gulf War. Section 1710(e)(3)(B) of the Medical Care Appropriation. ORCA ad- counseling, training, and mental health serv- title 38 specifies that this eligibility expires vises the Under Secretary for Health on mat- ices for immediate family members. on December 31, 2001. Section 105 would place in the new sub- ters affecting the integrity of research, the Senate Bill safety of human-subjects research and re- chapter the current dependent health care The Senate Bill would amend section 1710 search personnel, and the welfare of labora- authorities known as ‘‘Civilian Health and of title 38, United States Code, to extend tory animals used in VA biomedical research Medical Programs—Veterans Affairs’’ health care eligibility for veterans who and development. ORCA field offices inves- (CHAMPVA), transferred from current sec- served in Southwest Asia during the Gulf tigate allegations of research impropriety, tion 1713 to the new section 1781. A new pro- War, to December 31, 2011. lack of compliance with rules for protection vision would specify that a dependent or sur- of research participants and scientific mis- vivor receiving such VA-sponsored care House Bill conduct. The ORCA chief officer reports to would be eligible for bereavement and other The House Bill contains no comparable the Under Secretary for Health. counseling and training and mental health provision. MAJOR MEDICAL FACILITY CONSTRUCTION services otherwise available to family mem- Compromise Agreement bers under the subchapter. Current Law The existing authority to provide hospital Section 211 follows the Senate bill but ex- None. care or medical services as a humanitarian tends the health care eligibility to December Senate Bill service in emergency cases would be moved 31, 2002. Fiscal Year 2002 appropriations are avail- to this new subchapter from its current loca- Mr. REID. Mr. President, I ask unan- able for an emergency repair project at the tion in section 1711(b). imous consent that the bill be read a VA Medical Center, Miami, Florida. Section Section 105 would also make various tech- third time and passed, the motion to 205 of the Senate Bill authorizes $28.3 million nical changes to accommodate the sub- reconsider be laid on the table with no chapter reorganization. These changes would for this project, in accordance with section intervening action or debate, and that 8104 of title 38, United States Code. recodify the existing provisions, and consoli- any statements relating thereto be House Bill date and clarify the existing statutory au- printed in the RECORD. The House bill has no comparable provi- thority to provide care to non-veterans. sion. Senate Bill The PRESIDENT pro tempore. With- Compromise Agreement The Senate bill has no comparable provi- out objection, it is so ordered. The bill (H.R. 3447) was read the third Section 206 follows the Senate Bill. sions. Compromise Agreement time and passed. SENSE OF CONGRESS ON SPECIAL TELEPHONE SERVICES FOR VETERANS Section 208 follows the House bill. f Current Law EXTENSION OF EXPIRING COLLECTIONS RELIEF FOR RETIRED SERGEANT None. AUTHORITIES FIRST CLASS JAMES D. BENOIT House Bill Current Law AND WAN SOOK BENOIT Sectiion 1710(f)(2)(B) of title 38, United Section 104 would require the Secretary to Mr. REID. Mr. President, I ask unan- assess special telephone services for veterans States Code, authorizes VA until September (such as help lines and ‘‘hotlines’’) provided 30, 2002, to collect nursing home, hospital, imous consent that the Judiciary Com- by the Department. The assessment would and outpatient co-payments from certain mittee be discharged from further con- include the geographic coverage, avail- veterans. Section 1729(a)(2)(E) of title 38, sideration of S. 1834, and that the Sen- ability, utilization, effectiveness, manage- United States Code, authorizes VA until Oc- ate proceed to its immediate consider- ment, coordination, staffing, and cost of tober 1, 2002, to collect third-party payments ation. for the treatment of the nonservice-con- those services. It would require the assess- The PRESIDENT pro tempore. With- ment to include a survey of veterans to nected disabilities of veterans with service- connected disabilities. out objection, it is so ordered. The measure satisfaction with current special clerk will state the bill by title. telephone services, as well as the demand for House Bill additional services. The Secretary would be Section 106 would extend until 2007 VA’s The legislative clerk read as follows: required to submit a report to Congress on authority to collect means test co-payments A bill (S. 1834) for the relief of retired Ser- the assessment within 1 year of enactment. and to collect third-party payments. geant First Class James D. Benoit and Wan Senate Bill Senate Bill Sook Benoit. The Senate bill contains no comparable The Senate bill contains no comparable There being no objection, the Senate provision. provision. proceeded to consider the bill.

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00308 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S14081 Mr. REID. Mr. President, I ask unan- and national observances, ceremonies, There being no objection, the Senate imous consent that the bill be read a and organizations, as title 36, United proceeded to consider the bill. third time, passed, and the motion to States Code, ‘Patriotic and National Mr. REID. Mr. President, I ask unan- reconsider be laid upon the table, with Observances, Ceremonies, and Organi- imous consent that the bill be read a no intervening action or debate, and zations.’ ’’ This was legislation pre- third time, passed, and the motion to that any statements related to the bill pared by the Office of Law Revision reconsider be laid upon the table, with be printed in the RECORD. Counsel in the House of Representa- no intervening action or debate, and The PRESIDENT pro tempore. With- tives. that any statements related thereto be out objection, it is so ordered. One of the organizations affected was printed in the RECORD. The bill (S. 1834) was read the third the United States Olympic Committee, The PRESIDENT pro tempore. With- time and passed, as follows: whose numerical codification citation out objection, it is so ordered. S. 1834 was changed in that re-codification The bill (H.R. 3392) was read the third Be it enacted by the Senate and House of Rep- legislation. The re-codification process time and passed. resentatives of the United States of America in also necessitated certain conforming f Congress assembled, changes to other parts of the U.S. Code GRANTING A FEDERAL CHARTER to modify cross-reference citations. SECTION 1. REQUIREMENT TO PAY CLAIMS. TO KOREAN WAR VETERANS AS- (a) PAYMENT REQUIRED.—The Secretary of One of these, occurring at 18 USCS SOCIATION, INCORPORATED the Treasury is authorized and directed to § 2320 (e)(1)(B), was intended to cite a pay, out of any money in the Treasury not portion of the Ted Stevens Olympic Mr. REID. Mr. President, I ask unan- otherwise appropriated, to James D. Benoit and Amateur Sports Act dealing with imous consent that the Judiciary Com- and Wan Sook Benoit, jointly, the sum of protection of its trademarks. mittee be discharged from further con- $415,000, in full satisfaction of all claims de- sideration of S. 392 and the Senate pro- scribed in subsection (b), such amount hav- The proper citation should have been ‘‘220506.’’ However, because of a typo- ceed to its immediate consideration. ing been determined by the United States The PRESIDENT pro tempore. With- Court of Federal Claims as being equitably graphical error that section of 18 USCS due the said James D. Benoit and Wan Sook reads ‘‘220706,’’ citing law that has to out objection, it is so ordered. Benoit pursuant to a referral of the matter do with Submarine Veterans of World The clerk will state the bill by title. to that court by Senate Resolution 129, 105th War II rather than Olympic symbols A bill (S. 392) to grant a Federal charter to Congress, 1st session, for action in accord- and terminology. Korean War Veterans Association, Incor- ance with sections 1492 and 2509 of title 28, This error went unnoticed until re- porated, and for other purposes. United States Code. cently when U.S. Customs officials There being no objection, the Senate (b) COVERED CLAIMS.—Subsection (a) ap- brought it to the attention of Salt proceeded to consider the bill. plies with respect to all claims of the said Mr. REID. Mr. President, I ask unan- James D. Benoit, Wan Sook Benoit, and the Lake Olympic Committee and USOC estate of David Benoit against the United attorneys in a discussion of enforcing imous consent that the bill be read a States for compensation and damages for the trademark protections associated with third time, passed, and the motion to wrongful death of David Benoit, the minor the upcoming Olympic Winter Games. reconsider be laid upon the table, with child of the said James D. Benoit and Wan In this meeting the Customs officials no intervening action or debate, and Sook Benoit, pain and suffering of the said expressed concern that this error could that any statements related thereto be David Benoit, loss of the love and compan- printed in the RECORD. ionship of the said David Benoit by the said prevent them from enforcing the law. The Olympic Rings and other sym- The PRESIDENT pro tempore. With- James D. Benoit and Wan Sook Benoit, and out objection, it is so ordered. the wrongful retention of remains of the said bols were giving exclusively to the David Benoit, all resulting from a fall sus- USOC under the Ted Stevens Olympic The bill (S. 392) was read the third tained by the said David Benoit, on June 28, and Amateur Sports Act. They are the time and passed, as follows: 1983, from an upper level window while occu- prime fund raising source for the S. 392 pying military family housing supplied by USOC. Be it enacted by the Senate and House of Rep- the Army in Seoul, Korea. This would be a simple correction resentatives of the United States of America in SEC. 2. LIMITATION ON USE OF FUNDS FOR AT- that would merely change ‘‘220706’’ to Congress assembled, TORNEYS’ FEES. ‘‘220506’’ at 18 USCS § 2320 (e)(1)(B). SECTION 1. GRANT OF FEDERAL CHARTER TO No part of the amount appropriated by sec- KOREAN WAR VETERANS ASSOCIA- tion 1 in excess of 10 percent thereof shall be Mr. REID. Mr. President, I ask unan- TION, INCORPORATED. paid or delivered to or received by any agent imous consent that the bill be read (a) GRANT OF CHARTER.—Part B of subtitle or attorney on account of services rendered three times, passed, the motion to re- II of title 36, United States Code, is amend- in connection with this claim, any contract consider be laid upon the table, and ed— to the contrary notwithstanding. Violation that any statements relating to the (1) by striking the following: of the provisions of this section is a mis- bill be printed in the RECORD. ‘‘CHAPTER 1201—[RESERVED]’’; and demeanor punishable by a fine not to exceed The PRESIDENT pro tempore. With- (2) by inserting the following: $1,000. out objection, it is so ordered. ‘‘CHAPTER 1201—KOREAN WAR VETERANS f The bill (S. 1888) was read the third ASSOCIATION, INCORPORATED AMENDING TITLE 18 OF THE time and passed. ‘‘Sec. UNITED STATES CODE (The bill is printed in today’s RECORD ‘‘120101. Organization. under ‘‘Statements on Introduced Bills ‘‘120102. Purposes. Mr. REID. Mr. President, I ask unan- and Joint Resolutions.’’) ‘‘120103. Membership. imous consent that the Senate proceed ‘‘120104. Governing body. to S. 1888, which was introduced earlier f ‘‘120105. Powers. ‘‘120106. Restrictions. today by Senator STEVENS. THE GERALD B.H. SOLOMON SARATOGA NATIONAL CEMETERY ‘‘120107. Duty to maintain corporate and tax- The PRESIDENT pro tempore. The exempt status. clerk will state the bill by title. Mr. REID. Mr. President, I ask unan- ‘‘120108. Records and inspection. The legislative clerk read as follows: imous consent that the Veterans’ Af- ‘‘120109. Service of process. A bill (S. 1888) to amend title 18 of the fairs Committee be discharged from ‘‘120110. Liability for acts of officers and United States Code to correct a technical further consideration and the Senate agents. ‘‘120111. Annual report. error in the codification of title 36 of the proceed to the immediate consider- United States Code. ation of H.R. 3392. ‘‘§ 120101. Organization There being no objection, the Senate The PRESIDENT pro tempore. With- ‘‘(a) FEDERAL CHARTER.—Korean War Vet- proceeded to consider the bill. out objection, it is so ordered. The erans Association, Incorporated (in this chapter, the ‘corporation’), incorporated in Mr. STEVENS. Mr. President, on Au- clerk will state the bill by title. gust 12th, 1998, the President signed the State of New York, is a federally char- The legislative clerk read as follows: tered corporation. into law H.R. 1085, legislation ‘‘to re- A bill (H.R. 3392) to name the national ‘‘(b) EXPIRATION OF CHARTER.—If the cor- vise, codify, and enact without sub- cemetery in Saratoga, New York, as the Ger- poration does not comply with the provisions stantive change certain general and ald B.H. Solomon Saratoga National Ceme- of this chapter, the charter granted by sub- permanent laws, related to patriotic tery, and for other purposes. section (a) expires.

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00309 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S14082 CONGRESSIONAL RECORD — SENATE December 20, 2001 ‘‘§ 120102. Purposes inspect the records of the corporation for NEDY and BROWNBACK. I am a proud co- ‘‘The purposes of the corporation are as any proper purpose, at any reasonable time. sponsor of their bill, S. 1749, the En- provided in its articles of incorporation and ‘‘§ 120109. Service of process hanced Border Security and Visa Entry include— ‘‘The corporation shall have a designated Reform Act. We should pass that bill in ‘‘(1) organizing, promoting, and maintain- agent in the District of Columbia to receive its entirety, and I hope that we do so ing for benevolent and charitable purposes service of process for the corporation. Notice before the end of this session. In the an association of persons who have seen hon- to or service on the agent is notice to or orable service in the Armed Forces during service on the Corporation. meantime, we should pass S. 1400 with- out delay. This measure’s original the Korean War, and of certain other per- ‘‘§ 120110. Liability for acts of officers and sons; agents sponsors were Senator KYL of Arizona ‘‘(2) providing a means of contact and com- ‘‘The corporation is liable for the acts of and Senator BROWNBACK, the Ranking munication among members of the corpora- its officers and agents acting within the Republican on the Immigration Sub- tion; scope of their authority. committee of the Judiciary Com- ‘‘(3) promoting the establishment of, and ‘‘§ 120111. Annual report mittee. It is cosponsored by Senator establishing, war and other memorials com- GRAMM, Senator KENNEDY, Senator memorative of persons who served in the ‘‘The corporation shall submit an annual Armed Forces during the Korean War; and report to Congress on the activities of the BINGAMAN, and Senator DOMENICI. I am ‘‘(4) aiding needy members of the corpora- corporation during the preceding fiscal year. glad to be able to accommodate them tion, their wives and children, and the wid- The report shall be submitted at the same and urge prompt action by the Senate ows and children of persons who were mem- time as the report of the audit required by on this measure. bers of the corporation at the time of their section 10101 of this title. The report may Mr. REID. Mr. President, I ask unan- death. not be printed as a public document.’’. (b) CLERICAL AMENDMENT.—The table of imous consent that the bill be read a ‘‘§ 120103. Membership chapters at the beginning of subtitle II of third time, passed, and the motion to ‘‘Eligibility for membership in the cor- title 36, United States Code, is amended by reconsider be laid upon the table, with poration, and the rights and privileges of striking the item relating to chapter 1201 no intervening action or debate, and members of the corporation, are as provided and inserting the following new item: that any statements related to the bill in the bylaws of the corporation. ‘‘1201. Korean War Veterans Associa- be printed in the RECORD. ‘‘§ 120104. Governing body tion, Incorporated ...... 120101’’. The PRESIDENT pro tempore. With- ‘‘(a) BOARD OF DIRECTORS.—The board of di- f out objection, it is so ordered. rectors of the corporation, and the respon- AMENDING THE ILLEGAL IMMI- The bill (S. 1400) was read the third sibilities of the board of directors, are as pro- time and passed, as follows: vided in the articles of incorporation of the GRATION REFORM AND IMMI- S. 1400 corporation. GRANT RESPONSIBILITY ACT OF ‘‘(b) OFFICERS.—The officers of the corpora- 1996 Be it enacted by the Senate and House of Rep- tion, and the election of the officers of the resentatives of the United States of America in Mr. REID. Mr. President, I ask unan- Congress assembled, corporation, are as provided in the articles of imous consent that the Judiciary Com- incorporation. SECTION 1. EXTENSION OF DEADLINE FOR PRES- mittee be discharged from further con- ENTATION OF CERTAIN BORDER ‘‘§ 120105. Powers sideration of S. 1400, and the Senate CROSSING IDENTIFICATION CARDS. ‘‘The corporation has only the powers pro- proceed to its immediate consider- Section 104(b)(2) of the Illegal Immigration vided in its bylaws and articles of incorpora- ation. Reform and Immigrant Responsibility Act of tion filed in each State in which it is incor- The PRESIDENT pro tempore. With- 1996 (8 U.S.C. 1101 note) is amended by strik- porated. out objection, it is so ordered. The ing ‘‘5 years’’ and inserting ‘‘6 years’’. ‘‘§ 120106. Restrictions clerk will state the bill by title. f ‘‘(a) STOCK AND DIVIDENDS.—The corpora- The legislative clerk read as follows: YEAR OF THE ROSE tion may not issue stock or declare or pay a A bill (S. 1400) to amend the Illegal Immi- Mr. REID. Mr. President, I ask unan- dividend. gration Reform and Immigrant Responsi- ‘‘(b) POLITICAL ACTIVITIES.—The corpora- bility Act of 1996 to extend the deadline for imous consent that the Senate proceed tion, or a director or officer of the corpora- aliens to present a border crossing card that to the immediate consideration of H. tion as such, may not contribute to, support, contains a biometric identifier matching the Con. Res. 292 which is at the desk. or participate in any political activity or in appropriate biometric characteristic of the The PRESIDENT pro tempore. The any manner attempt to influence legislation. alien. clerk will report the concurrent resolu- ‘‘(c) LOAN.—The corporation may not make a loan to a director, officer, or employee of There being no objection, the Senate tion by title. the corporation. proceeded to consider the bill. The legislative clerk read as follows: ‘‘(d) CLAIM OF GOVERNMENTAL APPROVAL OR Mr. LEAHY. Mr. President, today we A concurrent resolution (H. Con. Res. 292) AUTHORITY.—The corporation may not claim will pass an important piece of legisla- supporting the goals of the Year of the Rose. congressional approval, or the authority of tion dealing with America’s borders. There being no objection, the Senate the United States, for any of its activities. This bill, S. 1400, has bipartisan sup- proceeded to consider the concurrent ‘‘§ 120107. Duty to maintain corporate and port for extending the deadline requir- resolution. tax-exempt status ing aliens to present a border passing Mr. REID. Mr. President, I ask unan- ‘‘(a) CORPORATE STATUS.—The corporation card with a biometric identifier to imous consent that the concurrent res- shall maintain its status as a corporation in- enter the United States from Mexico. olution be agreed to, the preamble be corporated under the laws of the State of This deadline expired earlier this year. agreed to, the motion to reconsider be New York. The bill would extend the requirement laid on the table, and any statements ‘‘(b) TAX-EXEMPT STATUS.—The corpora- tion shall maintain its status as an organiza- by one year to allow the State Depart- related thereto be printed in the tion exempt from taxation under the Inter- ment to finish the difficult job of con- RECORD. nal Revenue Code of 1986 (26 U.S.C. 1 et seq.). verting the old border crossing cards The PRESIDENT pro tempore. With- ‘‘§ 120108. Records and inspection used by Mexicans entering the United out objection, it is so ordered. States. ‘‘(a) RECORDS.—The corporation shall The concurrent resolution (H. Con. keep— This is a major task, and the State Res. 292) was agreed to. ‘‘(1) correct and complete records of ac- Department has already accomplished The preamble was agreed to. count; a great deal, issuing millions of new bi- f ‘‘(2) minutes of the proceedings of its mem- ometric border crossing cards. As our bers, board of directors, and committees hav- State Department continues to work to RECOGNITION OF THE SENATE ing any of the authority of its board of direc- finish this task, however, we should STAFF tors; and not punish lawful Mexican workers Mr. REID. Mr. President, the staff is ‘‘(3) at its principal office, a record of the who are still waiting for new cards, or working on a couple more items. While names and addresses of its members entitled they are doing that, I would like to ex- to vote on matters relating to the corpora- the American businesses that depend tion. upon them as customers and employ- press to the Presiding Officer my best ‘‘(b) INSPECTION.—A member entitled to ees. wishes for a happy holiday. vote on matters relating to the corporation, This bill is one piece of major border I would also like to, at this late hour, or an agent or attorney of the member, may security introduced by Senators KEN- acknowledge the work done by the

VerDate Mar 15 2010 03:38 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00310 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY December 20, 2001 CONGRESSIONAL RECORD — SENATE S14083 staff of the Senate. I spend days with PROGRAM DEPARTMENT OF STATE these people. The work of the Senate is Mr. REID. Mr. President, the Senate MARK FLETCHER ELLIS, OF MAINE done by the people who get no recogni- MARK F. MARRANO, OF TEXAS will conduct a live quorum when the DENISON KYLE OFFUTT, OF WEST VIRGINIA tion but do so much of the work. Each Senate convenes. Therefore, the next JAMES KENT STIEGLER, OF CALIFORNIA of them are experts at what they do. ABDELNOUR ZAIBACK, OF MARYLAND rollcall vote will occur on Wednesday, FOR APPOINTMENT AS FOREIGN SERVICE OFFICER OF People around here will be working January 23, at approximately 12 noon. CLASS FOUR, CONSULAR OFFICER AND SECRETARY IN until the wee hours of the morning. As a reminder, the Senate photograph THE DIPLOMATIC SERVICE OF THE UNITED STATES OF You and I may be here late—the last AMERICA. will be taken at 2:30 p.m. on Wednes- DEPARTMENT OF STATE two to leave the Senate—but they will day. arrive at their homes sometime tomor- EDWARD L. ALLEN, OF ARIZONA f GARY DEAN ANDERSON, OF TEXAS row morning. The last time we did the MICHELE BACK, OF MINNESOTA ALEJANDRO HOOR BAEZ, OF TEXAS Defense bill, I talked to one member of ADJOURNMENT SINE DIE ANDREA S. BAKER, OF VIRGINIA the staff who went home at 5 a.m. that ROBERT ALLAN BARE, OF CALIFORNIA Mr. REID. Mr. President, if there is WILLIAM QUINN BEARDSLEE, OF COLORADO morning. no further business to come before the KATHY A. BENTLEY, OF TENNESSEE I want each of them to know that BRETT BLACKSHAW, OF NEW YORK Senate, I ask unanimous consent that MICHELLE A. BRADFORD, OF NEW JERSEY even though they do not get the rec- the Senate stand in adjournment under TOBIN JOHN BRADLEY, OF CALIFORNIA ognition that we get, their jobs are just HEIDE BRONKE, OF NEW YORK the provisions of H. Con. Res. 295. STEVEN R. BUTLER, OF KENTUCKY as important as ours. We in effect There being no objection, at 10:06 JOHN R. BUZBEE, OF KENTUCKY couldn’t do without them. Every day CLAUDIA M. COLEMAN, OF TEXAS p.m., the Senate adjourned sine die. ROBERT MADISON CONOLEY, OF WASHINGTON they do things that help make us look RICHARD RANDALL CUSTIN, OF MICHIGAN as if we know what we are doing. Hope- f JESSICA LEE DAVIES, OF CALIFORNIA GERALD A. DONOVAN, OF DELAWARE fully, we do most of the time, but if we NOMINATIONS JAMES B. DOTY, OF VIRGINIA don’t, they take care of things, point LEAH MICHELLE FENWICK, OF CALIFORNIA Executive nominations received by TIMOTHY THOMAS FITZGIBBONS, OF NEBRASKA us in the right direction. the Senate December 20, 2001: RAFAEL P. FOLEY, OF NEW YORK I am personally indebted to the help DANIEL L. FOOTE, OF VIRGINIA DEPARTMENT OF AGRICULTURE ROBERT M. FREEDMAN, OF WASHINGTON that each of these fine public servants PAUL N. FUJIMURA, OF CALIFORNIA give to the people of the State of Ne- NANCY SOUTHARD BRYSON, OF THE DISTRICT OF CO- ANDREA FRANCA GASTALDO, OF TEXAS LUMBIA, TO BE GENERAL COUNSEL OF THE DEPART- MAUREEN GLAZIER, OF TEXAS vada, the people of West Virginia, and MENT OF AGRICULTURE, VICE CHARLES R. RAWLS, RE- GREGORY S. GROTH, OF CALIFORNIA this country. SIGNED. BRIAN F. HARRIS, OF WASHINGTON MELANIE S. HARRIS, OF FLORIDA I want the record spread with my SECURITIES AND EXCHANGE COMMISSION MICHAEL J. HAZEL, OF WASHINGTON good wishes for a happy holiday. In PAUL S. ATKINS, OF VIRGINIA, TO BE A MEMBER OF PETER GRANT HEMSCH, OF CALIFORNIA THE SECURITIES AND EXCHANGE COMMISSION FOR THE ROBIN HOLZHAUER, OF WISCONSIN saying this, I speak for every Senator, REMAINDER OF THE TERM EXPIRING JUNE 5, 2003, VICE JEFFREY DAVID PRESTON HORWITZ, OF NEW YORK Democrats and Republicans, we prob- ARTHUR LEVITT, JR., RESIGNED. VIRGINIA MEADE HOTCHNER, OF VIRGINIA CYNTHIA A. GLASSMAN, OF VIRGINIA, TO BE A MEMBER PAUL J. HOUGE, OF TEXAS ably, as busy as we are, don’t recognize OF THE SECURITIES AND EXCHANGE COMMISSION FOR A DEENA JOHNSONBAUGH, OF WASHINGTON how busy they are and in the process TERM EXPIRING JUNE 5, 2006, VICE LAURA S. UNGER, FREDERICK L. JONES II, OF CALIFORNIA TERM EXPIRED. VIVIAN KELLER, OF VERMONT don’t express our appreciation nearly MARY MARGARET KNUDSON, OF VIRGINIA as much as we should. ENVIRONMENTAL PROTECTION AGENCY MATTHEW A. KRICHMAN, OF CALIFORNIA BARBARA BETH LAMPRON, OF NEW JERSEY LINDA MORRISON COMBS, OF NORTH CAROLINA, TO BE f JENNIFER L. LANGSTON, OF CALIFORNIA CHIEF FINANCIAL OFFICER, ENVIRONMENTAL PROTEC- INGRID D. LARSON, OF MARYLAND TION AGENCY, VICE SALLYANNE HARPER. HILLARY MANN, OF THE DISTRICT OF COLUMBIA MEASURES READ THE FIRST DEPARTMENT OF HEALTH AND HUMAN SERVICES DAVID R. MCCAWLEY, OF CALIFORNIA TIME—H.R. 1432, H.R. 3487, H.R. 400, DAVID L. MCCORMICK, OF MASSACHUSETTS EVE SLATER, OF NEW JERSEY, TO BE AN ASSISTANT MEREDITH C. MCEVOY, OF COLORADO H.R. 3529, H.R. 2362, H.R. 3504, H.R. SECRETARY OF HEALTH AND HUMAN SERVICES, VICE DANIEL FRANCIS MCNICHOLAS, OF ILLINOIS 2742, AND H.R. 3441 DAVID SATCHER, RESIGNED. RACHEL L. MEYERS, OF CALIFORNIA TESS ANNETTE MOORE, OF TEXAS DEPARTMENT OF EDUCATION Mr. REID. Mr. President, I ask unan- MATTHEW DAVID MURRAY, OF MARYLAND WILLIAM LEIDINGER, OF VIRGINIA, TO BE ASSISTANT ROBERT S. NEUS, OF FLORIDA imous consent that it be in order for SECRETARY FOR MANAGEMENT, DEPARTMENT OF EDU- MARC A. NORDBERG, OF TEXAS the following bills to receive their first CATION, VICE RODNEY A. MCCOWAN, RESIGNED. SCOTT MCCONNIN OUDKIRK, OF VIRGINIA KRISTA A. PETERSON, OF NEW MEXICO reading and objection having been OFFICE OF PERSONNEL MANAGEMENT CARLTON PHILADELPHIA, OF FLORIDA placed for further proceedings: H.R. USHA E. PITTS, OF THE DISTRICT OF COLUMBIA DAN GREGORY BLAIR, OF THE DISTRICT OF COLUMBIA, THERESA ANN RENNER SMITH, OF MARYLAND 1432, H.R. 3487, H.R. 400, H.R. 3529, H.R. TO BE DEPUTY DIRECTOR OF THE OFFICE OF PERSONNEL ROGER CLAUDE RIGAUD, OF NEW JERSEY 2362, H.R. 3504, H.R. 2742, and H.R. 3441. MANAGEMENT, VICE JOHN U. SEPULVEDA, RESIGNED. JEFFREY JAMES ROBERTSON, OF CALIFORNIA DEPARTMENT OF JUSTICE KEVIN S. ROLAND, OF MARYLAND The PRESIDENT pro tempore. With- STEVEN B. ROYSTER, OF VIRGINIA out objection, the several requests are MATTHEW D. ORWIG, OF TEXAS, TO BE UNITED STATES MICHAEL DEAN SESSUMS, OF FLORIDA ATTORNEY FOR THE EASTERN DISTRICT OF TEXAS FOR DANNETTE K. SEWARD, OF WYOMING ordered. THE TERM OF FOUR YEARS, VICE JOHN MICHAEL BRAD- MAUREEN SHAHEEN, OF VIRGINIA FORD, RESIGNED. MATTHEW L. SHIELDS, OF VIRGINIA f SEIJI T. SHIRATORI, OF OREGON FOREIGN SERVICE SUSAN M. SHULTZ, OF FLORIDA ORDERS FOR WEDNESDAY, THE FOLLOWING-NAMED CAREER MEMBERS OF THE PHILLIP T. SLATTERY, OF CALIFORNIA JANUARY 23, 2002 SENIOR FOREIGN SERVICE, CLASS OF CAREER MINISTER, RICHARD WILLIAM SNELSIRE, OF TEXAS FOR THE PERSONAL RANK OF CAREER AMBASSADOR IN JAMES BROWARD STORY, OF SOUTH CAROLINA Mr. REID. Mr. President, I ask unan- RECOGNITION OF ESPECIALLY DISTINGUISHED SERVICE TIMOTHY C. SWANSON, OF WYOMING OVER A SUSTAINED PERIOD: WALTER RANDALL TOWNSEND, OF TEXAS imous consent that when the Senate VERNELLE TRIM, OF VIRGINIA JEFFREY DAVIDOW, OF VIRGINIA MICHAEL R TURNER, OF TEXAS completes its business today, it ad- RUTH A. DAVIS, OF CALIFORNIA LIAN VON WANTOCH, OF CALIFORNIA journ until the hour of 12 noon, GEORGE E. MOOSE, OF COLORADO DUNCAN HUGHITT WALKER, OF CALIFORNIA THE FOLLOWING-NAMED PERSONS OF THE DEPART- LISA LOUISE WASHBURN, OF TEXAS Wednesday, January 23, 2002; that fol- MENT OF STATE FOR APPOINTMENT AS FOREIGN SERV- J. RICHARD WATERS III, OF ALABAMA lowing the prayer and the pledge, the ICE OFFICERS OF THE CLASSES STATED: MARGARET BRYAN WHITE, OF GEORGIA FOR APPOINTMENT AS FOREIGN SERVICE OFFICER OF BENJAMIN V. WOHLAUER, OF THE DISTRICT OF COLUM- Journal of proceedings be approved to CLASS ONE, CONSULAR OFFICER AND SECRETARY IN THE BIA date, the morning hour be deemed ex- DIPLOMATIC SERVICE OF THE UNITED STATES OF AMER- ALEISHA WOODWARD, OF WASHINGTON ICA. JEFFERY A. YOUNG, OF FLORIDA pired, the time for the two leaders be JOSEPH E. ZADROZNY JR., OF TEXAS DEPARTMENT OF STATE reserved for their use later in the day, IN THE AIR FORCE and the Senate be in a period of morn- GUSTAVIO ALBERTO MEJIA, OF FLORIDA GREGORY JOHN ORR, OF CALIFORNIA THE FOLLOWING NAMED AIR NATIONAL GUARD OF THE ing business until 12:30 p.m. with Sen- FOR APPOINTMENT AS FOREIGN SERVICE OFFICER OF UNITED STATES OFFICER TO THE GRADE INDICATED IN ators permitted to speak for up to 10 CLASS TWO, CONSULAR OFFICER AND SECRETARY IN THE RESERVE OF THE AIR FORCE UNDER TITLE 10, U.S.C., THE DIPLOMATIC SERVICE OF THE UNITED STATES OF SECTIONS 1552, 12203 AND 12212: minutes each, with time equally di- AMERICA. To be colonel vided between Senators DASCHLE and DEPARTMENT OF STATE DAVID E. BLUM, 0000 LOTT or their designees; further that KAREN L A EMMERSON, OF WEST VIRGINIA THE FOLLOWING NAMED OFFICERS FOR THE GRADE IN- the Senate recess from 12:30 to 2:15 for J. ALBERT TAYLOR, OF MARYLAND DICATED IN THE RESERVE OF THE AIR FORCE UNDER the weekly party conferences. FOR APPOINTMENT AS FOREIGN SERVICE OFFICER OF TITLE 10, U.S.C., SECTION 12203 AND 12212: The PRESIDENT pro tempore. With- CLASS THREE, CONSULAR OFFICER AND SECRETARY IN To be colonel THE DIPLOMATIC SERVICE OF THE UNITED STATES OF out objection, it is so ordered. AMERICA. JAMES C. COOPER II, 0000

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JOHN J. KUPKO II, 0000 DEPARTMENT OF THE INTERIOR IN THE ARMY DEPARTMENT OF JUSTICE KATHLEEN BURTON CLARKE, OF UTAH, TO BE DIREC- THE FOLLOWING NAMED OFFICERS FOR APPOINTMENT JANE J. BOYLE, OF TEXAS, TO BE UNITED STATES AT- TOR OF THE BUREAU OF LAND MANAGEMENT. IN THE RESERVE OF THE ARMY TO THE GRADES INDI- TORNEY FOR THE NORTHERN DISTRICT OF TEXAS FOR CATED UNDER TITLE 10, U.S.C., SECTION 12203: NATIONAL AERONAUTICS AND SPACE THE TERM OF FOUR YEARS, VICE PAUL EDWARD To be major general COGGINS, RESIGNED. ADMINISTRATION JAMES K. VINES, OF TENNESSEE, TO BE UNITED BRIGADIER GENERAL DONNA F. BARBISCH SEAN O’KEEFE, OF NEW YORK, TO BE ADMINISTRATOR STATES ATTORNEY FOR THE MIDDLE DISTRICT OF TEN- BRIGADIER GENERAL JAMIE S. BARKIN OF THE NATIONAL AERONAUTICS AND SPACE ADMINIS- NESSEE FOR THE TERM OF FOUR YEARS, VICE JOHN BRIGADIER GENERAL ROBERT W. CHESNUT TRATION. MARSHALL ROBERTS, RESIGNED. BRIGADIER GENERAL RICHARD S. COLT THE ABOVE NOMINATIONS WERE APPROVED SUBJECT JOHNNY LEWIS HUGHES, OF MARYLAND, TO BE UNITED BRIGADIER GENERAL LOWELL C. DETAMORE TO THE NOMINEES’ COMMITMENT TO RESPOND TO RE- STATES MARSHAL FOR THE DISTRICT OF MARYLAND BRIGADIER GENERAL DOUGLAS O. DOLLAR QUESTS TO APPEAR AND TESTIFY BEFORE ANY DULY FOR THE TERM OF FOUR YEARS, VICE GEORGE K. MCKIN- BRIGADIER GENERAL KENNETH D. HERBST CONSTITUTED COMMITTEE OF THE SENATE. NEY. BRIGADIER GENERAL KAROL A. KENNEDY RANDY MERLIN JOHNSON, OF ALASKA, TO BE UNITED BRIGADIER GENERAL RODNEY M. KOBAYASHI COMMODITY FUTURES TRADING COMMISSION STATES MARSHAL FOR THE DISTRICT OF ALASKA FOR BRIGADIER GENERAL ROBERT B. OSTENBERG THE TERM OF FOUR YEARS, VICE JOHN R. MURPHY. JAMES E. NEWSOME, OF MISSISSIPPI, TO BE A COMMIS- BRIGADIER GENERAL MICHAEL W. SYMANSKI LARRY WADE WAGSTER, OF MISSISSIPPI, TO BE SIONER OF THE COMMODITY FUTURES TRADING COMMIS- BRIGADIER GENERAL WILLIAM B. WATSON, JR. UNITED STATES MARSHAL FOR THE NORTHERN DIS- SION FOR THE TERM EXPIRING JUNE 19, 2006. To be brigadier general TRICT OF MISSISSIPPI FOR THE TERM OF FOUR YEARS, JAMES E. NEWSOME, OF MISSISSIPPI, TO BE CHAIRMAN VICE JOHN DAVID CREWS, JR. OF THE COMMODITY FUTURES TRADING COMMISSION. COLONEL JAMES E. ARCHER COLONEL THOMAS M. BRYSON f NATIONAL FOUNDATION ON THE ARTS AND THE COLONEL PETER S. COOKE HUMANITIES COLONEL DONNA L. DACIER CONFIRMATIONS COLONEL CHARLES H. DAVIDSON IV MICHAEL HAMMOND, OF TEXAS, TO BE CHAIRPERSON COLONEL MICHAEL R. EYRE Executive nominations confirmed by OF THE NATIONAL ENDOWMENT FOR THE ARTS FOR A COLONEL DONALD L. JACKA, JR. the Senate December 20, 2001: TERM OF FOUR YEARS. COLONEL WILLIAM H. JOHNSON COLONEL ROBERT J. KASULKE DEPARTMENT OF DEFENSE THE JUDICIARY COLONEL JACK L. KILLEN, JR. C. ASHLEY ROYAL, OF GEORGIA, TO BE UNITED STATES COLONEL JOHN C. LEVASSEUR CLAUDE M. BOLTON, JR., OF FLORIDA, TO BE AN AS- COLONEL JAMES A. MOBLEY SISTANT SECRETARY OF THE ARMY. DISTRICT JUDGE FOR THE MIDDLE DISTRICT OF GEOR- GIA. COLONEL MARK A. MONTJAR EXPORT-IMPORT BANK OF THE UNITED STATES COLONEL CARRIE L. NERO DEPARTMENT OF JUSTICE COLONEL ARTHUR C. NUTTALL EDUARDO AGUIRRE, JR., OF TEXAS, TO BE FIRST VICE COLONEL PAULETTE M. RISHER PRESIDENT OF THE EXPORT-IMPORT BANK OF THE HARRY E. CUMMINS, III, OF ARKANSAS, TO BE UNITED COLONEL KENNETH B. ROSS UNITED STATES FOR A TERM EXPIRING JANUARY 20, 2005. STATES ATTORNEY FOR THE EASTERN DISTRICT OF AR- COLONEL WILLIAM TERPELUK J. JOSEPH GRANDMAISON, OF NEW HAMPSHIRE, TO BE KANSAS FOR THE TERM OF FOUR YEARS. COLONEL MICHAEL H. WALTER A MEMBER OF THE BOARD OF DIRECTORS OF THE EX- CHRISTOPHER JAMES CHRISTIE, OF NEW JERSEY, TO COLONEL ROGER L. WARD PORT-IMPORT BANK OF THE UNITED STATES FOR A BE UNITED STATES ATTORNEY FOR THE DISTRICT OF COLONEL DAVID ZALIS TERM EXPIRING JANUARY 20, 2005. NEW JERSEY FOR THE TERM OF FOUR YEARS. COLONEL BRUCE E. ZUKAUSKAS

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Vol. 147 WASHINGTON, THURSDAY, DECEMBER 20, 2001 No. 178 EXTENSIONS OF REMARKS

HONORING PEPPERELL MIDDLE tremely hard, soliciting in many ways other World War II, Korean War, Vietnam War, fall SCHOOL, ROME, GA, ‘‘34,288 CANS than just going house to house. Some stu- of the Soviet Union and now, the war against OF FOOD IN THE HALL’’ dents donated their ice cream money; they terrorism. Throughout this time period they held a dance and a talent show to raise have devoted their lives to agricultural produc- HON. BOB BARR money. The school has led the entire state in tion and determined community service. Pete OF GEORGIA Can-a-Thon donations for 8 straight years. was the president of the Crook Volunteer Fire IN THE HOUSE OF REPRESENTATIVES Eight years ago, a tornado hit the Lindale Department for 27 years and Lena was the or- community, destroying or damaging many ganist and pianist in a Crook church for over Wednesday, December 19, 2001 homes, and leaving many families homeless. 45 years. The Neins serve as a shining exam- Mr. BARR of Georgia. Mr. Speaker, the The Salvation Army was immediately there to ple, not only for their community, but for all main hall of Pepperell Middle School, located assist those families. The students of Americans. in the small community of Lindale, just outside Pepperell Middle School decided at that time As a husband and father of five, I have the city of Rome, GA, has been lined with to secure canned goods for those who experi- come to adore the example of a strong mar- 12×25 inch cardboard boxes stacked halfway enced losses due to the storm. They found riage and loving children. Pete and Lena start- to the ceiling for several weeks. The boxes great satisfaction in helping those in need; and ed their lives together humbly, working hard to were crammed with more than 34,000 cans of the tradition continues each year with the Can- build a happy and successful life together. My food; all donated by students for this year’s a-Thon. admiration for them, and the fortitude and local Salvation Army Can-a-Thon. The principal, staff, faculty, students, their commitment they have demonstrated is deep. Sponsored by Atlanta NBC affiliate WXIA families, and, indeed, the entire community, Through the good times and the bad, Pete 11-Alive; Rome radio stations WRGA, Q–102, are to be commended for their outstanding and Lena’s love has forged a seemingly un- South 107; and the Forum, the Salvation Army participation in this event. It is with great pride breakable bond. Can-a-Thon accepts donations of canned, I recognize them today as true community Pete and Lena Nein are amazing role mod- non-perishable food items in the Forum’s main leaders. I am honored to serve as their Rep- els. As a Member of Congress, it is my honor parking lot on a designated day in December. resentative in the U.S. Congress. to congratulate both Pete and Lena on their On November 1st each year, students begin f anniversary. Pete and Lena let nothing stand to solicit canned goods from family, friends, between their unceasing love for one another neighbors, and others. Last year, over 24,000 TRIBUTE TO MR. PETE AND LENA on their glorious day. I ask the House to join cans were collected by students at Pepperell NEIN me in extending wholehearted congratulations Middle School. The goal for 2001 was set at to Mr. and Mrs. Pete Nein. 26,000 cans. Once they exceeded that total, a HON. BOB SCHAFFER f new goal was set at 30,000 cans. On the OF COLORADO IN RECOGNITION OF THE CITY OF morning of Friday, December 7, a large Ma- IN THE HOUSE OF REPRESENTATIVES rine Corps truck made its way to Pepperell GAINESVILLE Middle School. Upon arrival, students loaded Wednesday, December 19, 2001 34,288 cans of food onto the truck which was Mr. SCHAFFER. Mr. Speaker, I rise today HON. RALPH M. HALL escorted by the local police, and two bus to express gratitude to Mr. and Mrs. Pete and OF TEXAS loads of students from the school, making its Lena Nein of Crook, Colorado, on their 70th IN THE HOUSE OF REPRESENTATIVES way to the Forum. Wedding Anniversary. In honor of this extraor- The annual holiday Can-a-Thon collected dinary occasion, I would like to convey to Wednesday, December 19, 2001 more than 70,000 cans from throughout the them my genuine congratulations. Mr. HALL of Texas. Mr. Speaker, I rise city and county. Approximately 700 baskets Pete and Lena were married on January 3, today to speak in recognition of the City of will be filled with canned goods and will be 1932 in Sedgwick, Colorado, where they Gainesville, Texas, which has recently insti- given to families in need. The food will also go began their lives together. Mr. and Mrs. Nein tuted the Medal of Honor Host City Program. toward providing daily meals for men, women, moved to Crook, in 1934 where they rented This program, unique in the nation, will pro- and children who seek shelter at the Salvation 160 acres of land and began farming with vide a stipend to cover lodging, food and Army. horse-drawn equipment. Their first house, in some travel expenses to Medal of Honor re- Pepperell Middle School principal Frank which they lived for 42 years, had electricity cipients visiting the City of Gainesville. Pinson is justifiably and extremely proud of his installed in 1936. Indoor plumbing was not in- The Medal of Honor Host City Program students, saying, ‘‘this is a big deal thing to stalled until 1940. Pete and Lena have wit- seeks both to honor the 149 living Medal of them, and it teaches them one of the greatest nessed and experienced extraordinary events Honor recipients and to expose the citizens of lessons they learn.’’ The students work ex- including the Dust Bowl, Great Depression, Gainesville—especially its youth—to true

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

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VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00001 Fmt 0666 Sfmt 9920 E:\CR\FM\A20DE8.000 pfrm07 PsN: E20PT1 E2340 CONGRESSIONAL RECORD — Extensions of Remarks December 20, 2001 American heroes. The local Veterans of For- rence and I strolled side by side through the findings as to how all criteria have been satis- eign Wars Post No. 1922, and community Capitol as he donned his signature bow tie fied. leaders, initiated the project to help recognize and me wearing a more conventional necktie. Fourth, I put forth language that would dou- these men of valor and to give the citizens of He represented the wealthy suburban Main ble—from $900,000 to $1.8 million—the re- Gainesville the chance to hear, first-hand, their Line area of Philadelphia and I represent the sources for the BIA’s Branch of Acknowledg- amazing stories. vibrant Harlem area of New York City. How- ment and Research Division to upgrade its The Congressional Medal of Honor Society ever, we had many shared interests and expe- recognition process. announced the project to its members at its riences. To help localities adversely affected by fed- October annual reunion. Two Medal of Honor Lawrence Coughlin served in the Marine erally recognized tribes, my bill provides $8 recipients visited Gainesville on Veterans Day. Corps during the Korean War. His military million in grants to local governments to assist This program was organized before the training was evident in the way he conducted such governments in participating in certain tragedies of September 11, but in light of re- himself in the Congress. He was a very dis- decisions related to certain Indian groups and cent events, projects like the Gainesville ciplined man who took a dogged approach to Indian tribes. These grants could be applied Medal of Honor Host City Program highlight tackling the difficult problems that face the na- retroactively to any local government that has the sacrifice, patriotism and sense of duty that tion and the Congress. I remember his pas- spent money on decisions related to certain have been a foundation of our great nation. sion for the youth of our great nation. This Indian groups and/or tribes. Our Medal of Honor recipients are living ex- passion was the source of his drive to do In addition, my legislation also creates a amples of those values and are the best mes- whatever was necessary during his tenure on grant program of $10 million to be made avail- sengers to tell the price of freedom. While in the Select Committee on Narcotics Abuse and able to federally impacted towns for relevant Gainesville, these extraordinary individuals will Control to rid our communities of the scourge infrastructure, public safety and social service meet with school classes, speak to civic of drugs. Although some would say, Lawrence needs directly related to tribal activities. groups and others who would like to hear had a Patrician air about him I would say he And lastly, the measure would institute a about their experiences. It gives the honorees had the air of a proud ex-marine who viewed ‘‘cooling off period’’ of one year, in which any a forum for their thoughts and gives Gaines- the war on drugs as a series of unending bat- high-level BIA official could not appear before ville the chance to thank them for all that they tles to be confronted head on until the war their former agency. have done for their country. was won and victory proclaimed. As a man of Mr. Speaker, I am proud to introduce this Mr. Speaker, I want to commend Mayor great consciousness, I will forever remember bill with three of my colleagues from Con- Kenneth Kaden for his leadership in promoting his stamina and commitment in his efforts to necticut—Mrs. JOHNSON and Messrs. SHAYS this project. It is an honor to recognize such eliminate drugs from our communities, making and MALONEY—and the gentleman from Wis- a unique and special program—The Medal of the world a better place for our youth. consin, Mr. GREEN. I urge others who care Honor Host City Program—and I look forward Mr. Speaker, I ask that all my colleagues about federal Indian recognition issues to join to seeing it succeed in Gainesville. join me in celebrating the life and the political us in working toward a recognition process f accomplishments of my great friend, the Hon- that is fair, open and respectful to all parties orable R. Lawrence Coughlin. involved. PERSONAL EXPLANATION f f HON. SOLOMON P. ORTIZ INTRODUCTION OF FEDERAL IN- STUDIES ENDORSE PROJECT DIAN RECOGNITION REFORM LABOR AGREEMENTS OF TEXAS LEGISLATION IN THE HOUSE OF REPRESENTATIVES HON. GEORGE MILLER Wednesday, December 19, 2001 HON. ROB SIMMONS OF CALIFORNIA Mr. ORTIZ. Mr. Speaker, I was unavoidably OF CONNECTICUT IN THE HOUSE OF REPRESENTATIVES detained in my district during the following roll- IN THE HOUSE OF REPRESENTATIVES Wednesday, December 19, 2001 call votes. Had I been present, I would have Wednesday, December 19, 2001 voted as indicated below. Rollcall No. 499: Mr. GEORGE MILLER of California. Mr. Yes; 500: Yes. Mr. SIMMONS. Mr. Speaker, our Federal In- Speaker, I wish to bring the results of two re- f dian recognition process is broken. Recogni- cent studies on the value of project labor tion decisions don’t take months to decide, agreements (PLAS) to the attention of my col- IN MEMORY OF HONORABLE R. they take years—and sometimes decades. leagues. LAWRENCE COUGHLIN Towns and other interested parties—some- The California Research Bureau, a non- times forced to spend millions because of fed- partisan confidential research arm of the Gov- HON. CHARLES B. RANGEL eral recognition policies—rightfully believe ernor’s office and the state legislature con- OF NEW YORK their concerns and comments are often ig- cluded that project labor agreements are ‘‘val- IN THE HOUSE OF REPRESENTATIVES nored. Criteria for recognition has been over- ued by owners and construction firms alike looked rather than upheld under previous BIA [because of] the role PLAs play in resolving Wednesday, December 19, 2001 administrators. In short, the public and Indian disputes over roles contractors and sub- Mr. RANGEL. Mr. Speaker, today is a bitter- tribes have lost faith in the current recognition contractors play in large and complex sweet day. It is with both great sadness and process. projects.’’ The CRB report also credited PLAs immense pride that I rise today in honor and A new administration has brought some for promoting local economic development, celebration of the life of my friend, the Honor- hope in fixing this important process. To this workforce training, and employment goals for able R. Lawrence Coughlin. end, I am rising today to introduce legislation women and minorities. Robert Lawrence Coughlin was born on that lays out a seven-point plan for reforming The UCLA Institute for Labor and Employ- April 11, 1929 in Wilkes-Barre, PA, and grew the federal Indian recognition process. ment has also recently released a study that up on his father’s farm near Scranton, PA. He Specifically, my bill would first require the found that PLAs do not increase labor costs, served distinguishably as a Republican Mem- BIA to notify states whenever a tribe within do not exclude non-union workers, encourage ber of the United States Congress for 24 them files for federal recognition. The state competition, promote stability, cooperation and years, from January 1969–January 1993 rep- must in turn ensure that notice is given to productivity, and reduce the likelihood of work resenting a portion of Philadelphia, PA and its towns adjacent to that tribe. stoppages or delays. surrounding suburban Main Line area. Second, the legislation would require the Mr. Speaker, these studies merely confirm Lawrence’s accomplishments were great BIA to accept and consider any testimony—in- what has long been understood by those in- during his tenure in Congress. He was a man cluding from surrounding towns and others— volved in private and public sector construc- of great honor and truly a gentleman. I had that bears on whether or not BIA recognizes tion who are not otherwise driven by ideology: the pleasure of serving with him while I was a tribe. Project labor agreements promote the timely Chairman of the Select Committee on Nar- Third, under my measure, the BIA would be completion of construction projects and in- cotics Abuse and Control and he served as required to find affirmatively that all recognition crease productivity. They are good for busi- the Ranking Republican Member. criteria are met in order to confer federal rec- ness. They also promote apprenticeship train- At first glance, one would perceive our rela- ognition and any decision conferring recogni- ing and help secure better working conditions. tionship as that of the ‘‘Odd Couple’’ as Law- tion must be accompanied by a written set of They are good for workers.

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00002 Fmt 0666 Sfmt 9920 E:\CR\FM\A19DE8.004 pfrm07 PsN: E20PT1 December 20, 2001 CONGRESSIONAL RECORD — Extensions of Remarks E2341 Unfortunately, among those who are most The residents of Polk County are preparing member of the Prince George’s County Board driven by ideology is the Bush Administration. for Polk County’s 150th birthday celebration. of Election Supervisors from 1964 to 1969, According to the December 13, 2001 issue Tentative plans include special music, recogni- and as a member of the Charter Review Com- of The Washington Post, Maryland has been tion of the oldest living person in the County, mission of the city of Bowie. forced by the Bush Administration to proceed the oldest married couple, the longest married Jerry also served his community as a teach- with the enormous Wilson Bridge construction couple, the youngest citizen, and the oldest er to Prince George’s County’s youth at Gon- project without the ability to use a project labor church in the County. Commemorative coins zaga High School, Bowie State University, and agreement. I am sure that my colleagues re- and Christmas ornaments have been de- Prince George’s Community College. call that last February, shortly after taking of- signed, cedar trees have been requisitioned to In 1975, Jerry took his talent to the Mary- fice, President Bush tried to ban project labor be presented to schools, and a game of Polk land General Assembly where I had the pleas- agreements for any construction project re- historical trivia is being compiled and will be ure of serving with him for six years. He was ceiving federal money. In a decision that spe- distributed to schools. Students in Polk County a member of the House of Delegates for elev- cifically involved the Wilson Bridge project, a schools are being asked to follow specific en years and was named Freshman Legislator federal judge ruled in November that the ban guidelines to design a flag which would best of the Year by the Maryland Young Democrats issued by President Bush violated federal law represent the County. Some items which could in 1975. He was also named Legislator of the and the Constitution. Following the decision, be represented on the flag are the City of Ara- Year by the Prince George’s Municipal Asso- the Maryland State Highway Administration gon as a manufacturing utopia; the City of ciation in 1983, 1985, and 1986. again sought permission from the Federal Cedartown for its cedar trees and for its origi- Jerry stepped down from his position as As- Highway Administration to implement a project nal inhabitants; the Cherokees; and the slate sociate Judge in the 5th District Court of Mary- labor agreement. But according to the Post, quarries in Rockmart. land this past September and retired from a the Federal Highway Administration rejected Polk County’s sesquicentennial Birthday long and praiseworthy career in civic affairs. Maryland’s request saying the state had not Celebration will be held on the evening of De- During his tenure as a judge, Jerry was well- proved the need for a PLA. cember 20th, 2001, on the steps of the Court- liked and respected by both bench and bar for By effectively prohibiting the use of a project house in Cedartown, Georgia. It would be- his even-handedness and wisdom. He had a labor agreement on the Wilson Bridge project, hoove us all to take the time to celebrate our good feel for fundamental fairness and the Bush Administration continues to thwart heritage and stop to share the stories of our through it all his Irish wit and humor shone good business practice and good labor policy past with our children and grandchildren. The through. to the detriment of taxpayers and continues to term ‘‘home town USA’’ truly describes the Judge Bob Sweeney, the former Chief deny working Americans the protections they people of Polk County. They are kind, gen- Judge of the Maryland District Court, said this are entitled to under law. I commend to my erous, caring folks and I am pleased to call of Jerry, ‘‘One of the ten things that a good colleagues’ and the administration’s attention many of them my friends. Happy Birthday Polk judge needs is courage. For a judge that the reports concerning project labor agree- County!! means doing the right thing even if it is not the ments by the California Research Bureau and f popular thing. Jerry Devlin personifies that the UCLA Institute for Labor and Employment, type of courage.’’ and I sincerely hope that the Administration JUDGE GERARD DEVLIN Mr. Speaker, I would like to repeat today an reconsiders its unwise hostility for these prov- Irish Blessing for my dear friend Jerry Devlin en agreements that benefit business, tax- HON. STENY H. HOYER to thank him for his years of service and to payers, workers and the public in general. OF MARYLAND wish him well in retirement: May your bless- f IN THE HOUSE OF REPRESENTATIVES ings outnumber the shamrocks that grow,/And HONORING THE 150TH ANNIVER- Wednesday, December 19, 2001 may trouble avoid you wherever you go./May SARY OF POLK COUNTY, GA the road rise up to meet you,/May the wind be Mr. HOYER. Mr. Speaker, I rise today to always at your back,/May the sun shine down HON. BOB BARR pay tribute to a great Irish-American success upon your face,/And the rain fall soft upon story, Judge Gerard Devlin of Prince George’s your fields,/Until we meet again,/May God hold OF GEORGIA County, Maryland. Judge Devlin is called Jerry IN THE HOUSE OF REPRESENTATIVES you in the hollow of his hand. by his friends of which I am fortunate to be I ask my colleagues to join me in honoring Wednesday, December 19, 2001 one. I have known Jerry for over thirty years, this great Irish American who gave forty years Mr. BARR of Georgia. Mr. Speaker, formed since I was an intern in Senator Brewster’s of- of public service to Prince George’s County in 1851 by an act of the Georgia Legislature, fice and Jerry was an elevator operator in the and the state of Maryland. Polk County, Georgia, was named for James Capitol. f Knox Polk, a former governor of Tennessee I have valued Jerry’s friendship over those and the 11th President of the United States. three decades and have always enjoyed his TRIBUTE TO AMBASSADOR ULRIK With a population of 38,127 people and a land boisterous and comic Irish sensibility. We FEDERSPIEL area of 311 square miles, Polk County is lo- have also shared a close professional relation- cated in northwest Georgia. ship and Jerry was always a faithful ally HON. TOM LANTOS For more than a hundred years the Cher- through our days in the Young Democrats, the OF CALIFORNIA okee and Creek Indians reigned supreme in Maryland General Assembly and beyond. IN THE HOUSE OF REPRESENTATIVES north Georgia. The southernmost village in the I pay tribute to Jerry today not simply be- Cherokee Nation was on Cedar Creek, which cause he is a good and old friend but to thank Wednesday, December 19, 2001 is located just off Main Street in present-day him upon the occasion of his retirement. His Mr. LANTOS. Mr. Speaker, I invite my col- Cedartown, the county seat of Polk County. In distinguished career in public service is not leagues to join me in commending Ambas- 1826, two white men, Linton Walthall and matched by many and his affable and cour- sador Ulrik Federspiel, who was sworn-in as Hampton Whatley, visited the area. They re- teous manner is appreciated by all. Denmark’s Ambassador to the United States turned in 1832 to establish stores, and the Jerry was born in Dorchester, Massachu- in May of 2000, for his record of achievement community began to develop. In 1838, the setts on May 29, 1933. He attended public in fostering transatlantic ties. Throughout his Cherokee were moved into small forts, and schools in Dorchester and Boston, and served remarkable career, Ambassador Federspiel then forced west on The Trail of Tears. In in U.S. Marine Corps from 1955 to 1957. He has worked tirelessly to strengthen the already 1852, the first courthouse was built on a 20- went on to Boston College and Suffolk Univer- close relationship between the United States acre site which had been donated to the town sity, and graduated from the University of Bal- and Denmark. Indeed, the Danes are fortunate of Cedartown (then called ‘‘Cedar Town’’) by timore School of Law in 1969. He also earned to have such an illustrious representative in Asa Prior. Two years later the town was incor- his masters from the University of Maryland in Washington, and the United States has no porated. 1970. better friend and ally in the Diplomatic Corps The War Between the States was not kind Jerry began his career in public service as here in Washington than Ambassador to Cedar Town. However, after the war, in a staff member in the United States House of Federspiel. 1867 the area began to grow and the town of Representatives in 1959 and later worked in Mr. Federspiel began his career in the Dan- Cedartown prospered, as did much of the sur- the United States Senate. His service was not ish Foreign Service in 1971, and was imme- rounding area, including the towns of limited to the national level however. He diately assigned to the prestigious European Rockmart and Aragon. served his local community for five years as a Community office within the Foreign Ministry.

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00003 Fmt 0666 Sfmt 9920 E:\CR\FM\A19DE8.009 pfrm07 PsN: E20PT1 E2342 CONGRESSIONAL RECORD — Extensions of Remarks December 20, 2001 His outstanding contributions on E.C. matters Ambassador has played an instrumental role American employees over the age of 65 who earned him a tenure in London as First Sec- in furthering the interests of the Home Rule were provided both Medicare and employer retary of Political Affairs from 1973 to 1977. Government and that of the Danish realm and health plan coverage and continued to actively During this time he worked in cooperation with has worked in close cooperation with the U.S. work. As a result of this legislative change, several African states in the process of de- government, especially Thule Air Base. The is- Medicare would now only provide secondary mocratizing countries including Zimbabwe, An- land and the base are strategic elements of coverage to the ‘‘working aged’’ after their em- gola and Namibia. Mr. Federspiel was espe- defense and security preparedness of both the ployer health plan. But once the ‘‘working cially active in supporting the anti-apartheid United States and Europe. aged’’ stopped working and contributing to our movement in South Africa. As a result, he was Ambassador Federspiel is also an accom- society, Medicare would again become the pri- personally invited to the inauguration of Presi- plished academic. He graduated from the Uni- mary insurance and payor of claims for these dent Nelson Mandela in 1993 and became a versity of Aarhus in political science in 1970, good people. consultant to the modern integrated South Af- and completed a year of post-graduate studies Then in 1986 the Congress again acted by rican administration. at the University of Pennsylvania, earning an passing the Omnibus Budget and Reconcili- In 1981, Ambassador Federspiel returned to MA in 1985–86. He has been a visiting lec- ation Act of 1986 which singled out yet an- Copenhagen to become Special Assistant to turer at George Washington University and other group of American workers—this group the Permanent Secretary of State for Foreign frequently lectured on international relations at of individuals was identified as ‘‘disabled ac- Affairs. A post he held until he arrived in the University of Copenhagen as well as tive individuals’’. A ‘‘disabled active individual’’ Washington to serve as Deputy Chief of Mis- served as a governing board of the university. was defined in the statute as an ‘‘employee sion at the Danish Embassy in 1984. He His interest in supporting academic excel- (as may be defined in regulations)’’. The quickly developed a reputation in Washington lence continues today. He is an Honorary OBRA Amendments of 1986 also mandated as a quick study with an imposing intellect Trustee of the Crown Prince Frederick Fund that Medicare become secondary insurance combined with a personable, friendly de- for Harvard University that supports two schol- coverage to the employer health plans for the meanor. Ambassador Federspiel came to un- arships annually for exemplary Danish univer- ‘‘disabled active individual’’. The Health Care derstand that not only does Denmark have a sity students. Ambassador Federspiel currently Financing Administration (HCFA), the respon- critical role to play in European matters, but, sits on the advisory board member of Human- sible federal government agency charged with for a small country, Denmark could ‘‘punch ity in Action (HIA), a unique educational pro- implementing the 1986 OBRA Amendments, above its weight’’ on transatlantic economic gram between Denmark, the United States, crafted a definition of employee by Agency di- and political issues. the Netherlands and Germany. HIA offers a rective—a policy which was never subjected to As State Secretary for Foreign Affairs from number of competent university students an the rigors of the Administrative Procedure Act 1991–93, Ulrik Federspiel worked to support intensive study of human rights and demo- and which was never promulgated into a regu- independence for the Baltic states, who were cratic values each year. This summer the pro- lation published in the Federal Register. emerging from the dark years of Soviet occu- gram was expanded to include internships on This ad hoc policy judgment made by the pation. Denmark was the first country in the Capitol Hill. Administrator of HCFA contradicted the very world to recognize the three former Soviet Ambassador Federspiel’s commitment to definition of employee already existing within countries of Estonia, Latvia and Lithuania. working for others is undoubtedly a result of the body of the Social Security Act and the In- From 1993 to 1997 Ambassador his and his family’s experiences growing up in ternal Revenue Code. HCFA’s definition effec- Federspiel’s outstanding record brought the war torn Europe. During the Nazi occupation tively said that if an employer continued to notice of the most senior members of the Dan- of Denmark, Ambassador Federspiel’s father, carry a disabled employee on their books in ish government and was asked to serve as Per Federspiel, was imprisoned for a year due ‘‘employee status’’ after a disability began Chief of Staff to the Prime Minister. At the EU to his involvement in the rescue of the jews in (which all employers did for employee benefit summit in June 1993 under the Danish presi- October 1943. Needless to say, Ambassador purposes), the employer health plan, not Medi- dency, Mr. Federspiel drafted the portion of Federspiel has proven himself to be a strong care, would become the primary payor for that the Copenhagen Criteria that set standards for and consistent supporter of the State of Israel. employee if he or she was unfortunate enough EU membership. Ambassador Federspiel be- After the horrible events of September 11th, to be classified as ‘‘the disabled active indi- came a staunch proponent of NATO expan- Ambassador Federspiel and the Danish peo- vidual.’’ According to the new HCFA policy, sion and has since taken a leading role in the ple were among the first to support the Amer- which remains the policy of the Agency, the process. Among his other accomplishments ican people and the cause of freedom. As a fact that the disabled employee was not actu- while in the Prime Minister’s Office, he played NATO member, Denmark is one of the strong- ally working was irrelevant. However, the com- an important role in the Danish decision to est supporters of the United States in its cam- mon law definition of employee used by Social play an active part in Bosnia, having the larg- paign against terrorism. And a recent poll of Security and the IRS states that an individual est contingency of ground troops there per the Danish population showed the Danish has to be actively working and performing capita, and the only country to have heavy people as the America’s strongest supporters services for remuneration in order to be con- armor, namely ten tanks. in Europe in our war on terrorism. sidered an employee. This ad hoc action by Mr. Speaker, since Ambassador Federspiel Mr. Speaker, it is a great honor and privi- HCFA has already directly and negatively af- arrived in the United States last May, he has lege for me to have the opportunity to thank fected numerous companies throughout Penn- been actively engaged in solving trade dis- Ambassador Federspiel for his uncompro- sylvania, Illinois and other states involving em- putes between the EU, Denmark and the mising dedication to furthering the friendship ployees that work for these companies. United States. His diplomatic skills were evi- between our two great countries. Due to HCFA’s departure from the com- dent while working with both the Congres- f monly accepted definition of employee, and sional leadership and the Administration in re- existing definitions within federal law, many solving several high-profile trade disputes, in- AMENDING TITLE XVIII OF THE employer health plans reacted to this unjusti- cluding the carousel sanctions and the import SOCIAL SECURITY ACT fied policy making of HCFA by simply taking ban on pork. Mutually beneficial trade has the easiest course of action—terminating been expanded between the U.S. and Den- HON. GEORGE W. GEKAS health coverage for their disabled employees. mark through close cooperation between the OF PENNSYLVANIA In effect, HCFA’s policy forced employers to former U.S. Ambassador in Copenhagen Rich- IN THE HOUSE OF REPRESENTATIVES begin discriminating against their disabled em- ard N. Swett and Ulrik Federspiel. ployees. Wednesday, December 19, 2001 Mr. Speaker, Ambassador Federspiel has While HCFA stated that an employer would brought his dynamism and passion to so many Mr. GEKAS. Mr. Speaker, until the early be primary payor to Medicare for their ‘‘work- political and humanitarian issues. Since com- 1980s, Medicare was always the primary ing aged’’, as soon as these individuals quit pleting his military service in the Royal Danish payor in all situations to employer health plans working, Medicare would become primary Navy in Greenland in 1970–71, Ulrik for both disabled and retired employees. How- payor. However, to these same employers, Federspiel has taken a keen interest in Green- ever, effective with the Omnibus Budget Rec- HCFA said that for your disabled employees land and its population. In 1984, when he be- onciliation Act of 1981 (‘‘OBRA’’), for the first you will be the primary payor to Medicare re- came Deputy Chief of Mission to the Danish time Medicare became the secondary payor gardless of whether these individuals are Embassy in Washington, D.C., the relationship for one group of American employees who working or not. between Greenland, the United States and were specifically singled out—the ‘‘working Due to this contradicting treatment between Denmark became one of his priorities. The aged’’. The ‘‘working aged’’ were defined as retirees and disabled employees, clarifying

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00004 Fmt 0666 Sfmt 9920 E:\CR\FM\K19DE8.002 pfrm07 PsN: E20PT1 December 20, 2001 CONGRESSIONAL RECORD — Extensions of Remarks E2343 language was finally introduced and passed tional Small Business Advisory Council. For spect and eternal gratitude, to this kind, loving by the Congress with passage of the Omnibus this, Mr. Speaker, the United States Congress and generous woman. Budget and Reconciliation Act of 1993 to treat should commend him. f both of these groups in the same and equal The National Small Business-Advisory manner. As a result, Medicare today now pays Council provides a link between small busi- TRIBUTE TO THE HONORABLE primary to employer health plans for disabled ness owners and Members of Congress, The MARY ALICE SALIZAR employees that are not actually actively work- purpose of the council is to give input on eco- ing. However, even though HCFA agrees pro- nomic and tax issues while also participating HON. SOLOMON P. ORTIZ spectively to be the primary payor once Medi- in private surveys and policy briefings. The OF TEXAS care’s ‘‘payment status’’ has been changed to council achieves this through participation in IN THE HOUSE OF REPRESENTATIVES primary, most retroactive Medicare claims sub- strategy sessions and national meetings with Wednesday, December 19, 2001 mitted for treatment received since August 10, local, state and national leaders. I applaud the Mr. ORTIZ. Mr. Speaker, I rise today to pay 1993 (effective date of statutory change) are National Small Business Advisory Council and tribute to an American patriot, Mary Alice denied. The reason for this from HCFA is that its new chairman Gerald Mayo, for creating an Salizar, who is retiring the end of this turbulent because these claims when submitted were alliance between the nation’s leadership and the small business community. year. considered to have not been ‘‘timely filed’’ in A native of Corpus Christi, Texas, Ms. conjunction with Medicare regulations. These A broker for Prudential Team Realty, Gerald Mayo has first-hand experience with small Salizar has served in the judicial branch of our claims could not have been timely filed pre- government since the early 1970s. She spent viously because they were for disabled em- businesses. His leadership and dedication to small businesses across the nation is com- the early part of her career working for local ployees whose former employers continued to attorneys and as a court reporter. pay as primary. mendable and greatly appreciated. Gerald is truly a shining example for all Americans. She wanted to be part of the federal court These employers acted honorably by con- system, and in 1973, she became part of the tinuing to pay claims from these employees as A constituent of Colorado’s Forth Congres- sional District, Gerald not only makes his com- U.S. District Clerk’s office. She has been an the primary payor because they were not integral part of the office since then. made aware of clarifying language enacted by munity proud, but also his state and country. It is a true honor to have such an extraor- Likewise, she has been an integral part of the Congress by OBRA in 1993, a change that our community, working with children and HCFA did not care to publicize. Even though dinary citizen in Colorado. I ask the House to join me in extending wholehearted congratula- young people from low-income families and the Congress in 1993 directed HCFA by clari- communities through her church. In doing so, fying the statute that Medicare is to act as the tions to Mr. Gerald Mayo. f she is part of a tradition of doing the most fun- primary payor for insurance claims for ‘‘dis- damental work Jesus instructed Christians to abled active individuals,’’ many American em- IN RECOGNITION OF MARGARET do: help the poor. ployers still have not been able to be fully and PARX HAYS While she intends on spending a great deal lawfully reimbursed and fully benefit from the of time on her crafts, quilting and others pas- legislative change intended by the Congress HON. RALPH M. HALL times, she nevertheless intends to continue by passage of OBRA in 1993. OF TEXAS her tradition of service to community through As a result, the Congress should once again IN THE HOUSE OF REPRESENTATIVES volunteering at a public school or as a senior act to direct the Administrator of HCFA to fully Wednesday, December 19, 2001 Candy Striper at a local hospital. rectify what was originally intended by the Mary Alice Salizar is the example for others Congress in 1993, namely to direct HCFA not Mr. HALL of Texas. Mr. Speaker, I rise to follow, both in the course of her life’s work to subject this unique and special class of today to speak in recognition of Margaret Parx and her desire to continue that service by vol- American employees and their respective Hays, a devoted community servant and unteering in the fields of health and education. Medicare claims to the standard Medicare former Mayor who initiated a drive to restore She will now also be spending more time timely filing regulations. These claims are not The Santa Fe Depot in the city of Gainesville, with her family, the people who supported her in any way similar to normal Medicare claims Texas. Margaret is a distinguished native of during her service to the community including: because they could never have been sub- Gainesville and has devoted considerable en- her husband Pedro Salizar; their children mitted previously or in a timely fashion due to ergy, drive, and creativity to bringing this Mark, Rick and David; and their grandchildren the problems I have illuminated in these re- project to fruition. Her efforts not only saved Annaliza and Estevan Marcos. marks. Medicare claims are normally sub- an historically significant building but helped I ask my colleagues to join me in com- mitted immediately upon or shortly after med- make the community aware of an important mending the life’s work of Mary Alice Salizar, ical treatment. Though Medicare regulations part of their history. who has spent the better part of her profes- allow for an exception to their timely filing This particular station, constructed in 1902, sional life as part of the federal judicial sys- guidelines if there is an error on the party of was Gainesville’s second depot. The city, tem. itself, received its first passenger train on Jan- the Secretary, HCFA has refused to apply this f exception to the special situation we have be- uary 2, 1887. The depot is an elegant redbrick fore us. Even more startling to this Chamber building that served the Santa Fe line when it HONORING THE ENLISTED MEN should be the fact that this very HCFA policy was originally constructed. Without Margaret’s AND WOMEN OF THE UNITED was determined to be illegal, unlawful and in- devotion to her community, though, the station STATES NAVY valid as a matter of federal administrative law would have remained an abandoned relic. by a U.S. District Court in the District of Co- Now it plays host to many community gath- HON. ROB SIMMONS lumbia in 1999 because of HCFA’s failure to erings. OF CONNECTICUT promulgate a valid federal regulation to sup- Mr. Speaker, it is with great thanks and ap- IN THE HOUSE OF REPRESENTATIVES preciation that I recognize the energy and ef- port the Agency’s policy determination, in the Wednesday, December 19, 2001 case SUNTRUST BANKS. INC. v. Donna forts of Margaret Parx Hayes, who organized Shalala, Secretary of Health and Human Serv- the effort to return the Santa Fe Depot in Mr. SIMMONS. Mr. Speaker, I rise today to ices, CA. No. 96 Gainesville, Texas to its original beauty. I have announce legislation that I have introduced to had the pleasure of knowing—and working request that the Secretary of the Navy name f with Margaret—for many years. This would be a U.S. Navy warship the ‘‘U.S.S. Bluejacket’’ TRIBUTE TO GERALD MAYO a better world, with more kindness and caring, in honor of the courageous Americans who and more success in the healthy growth of a have served as enlisted members in the HON. BOB SCHAFFER city or area, if we had Margaret Parx Hays in United States Navy. OF COLORADO each of our cities. She is, other than being a My resolution also requests that this vessel IN THE HOUSE OF REPRESENTATIVES wonderful person, a great asset to the city of bear the hull designation number ‘‘1776’’ to re- Gainesville—and all who live there who want flect the freedom and independence protected Wednesday, December 19, 2001 and expect to have gracious living. Margaret and preserved by the millions of enlisted men Mr. SCHAFFER. Mr. Speaker, it is an honor brings this to the table of public service be- and women who have proudly served in the to rise today to congratulate to Mr. Gerald cause she cares. United States Navy. Our Navy, as well as for Mayo of Estes Park, Colorado, who was re- Let us close this House of Representatives the nation, would be well served to have a cently named honorary-chairman of the Na- on this day, December 18, 2001, in loving re- ship bearing the hull number 1776.

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00005 Fmt 0666 Sfmt 9920 E:\CR\FM\K19DE8.003 pfrm07 PsN: E20PT1 E2344 CONGRESSIONAL RECORD — Extensions of Remarks December 20, 2001 Mr. Speaker, the Second District of Con- reform passed in 1996, CCDBG has been a TRIBUTE TO CAROL ELISE necticut, which I have the privilege of rep- critical work support for many low-income fam- BENNETT resenting, has a long and proud Naval and ilies moving off welfare and many other work- seafaring history, We are home to the ‘‘The ing poor struggling to remain self-sufficient. HON. TERRY EVERETT First and Finest,’’ the Naval Submarine Base Reliable, accessible, and affordable child care OF ALABAMA New London, homeport to Submarine Squad- is important for families to continue their em- IN THE HOUSE OF REPRESENTATIVES ron Two, Four, and Development Squadron ployment and remain off welfare and for sus- Twelve, the Naval Submarine School, and taining the economic strength of this country. Wednesday, December 19, 2001 Naval Submarine Support Facility. Thousands Poor families who are unable to secure child Mr. EVERETT. Mr. Speaker, with the U.S. of men and women in my district are part of care assistance pay up to one-third of their in- House of Representatives set to conclude its the ‘‘silent service’’ and its support and train- come for child care, creating an incredible bur- work for the First Session of the 107th Con- ing structure. They are dedicating their lives, den for families struggling to make ends meet gress, I would like to add a final contribution risking their lives everyday in our great Navy. and marginalizing the value of going to work to the RECORD as we close the Congressional I believe that we should honor their service or remaining employed. Indeed, families often history book on 2001. and sacrifice by naming a ship the ‘‘U.S.S cite problems with child care as a major rea- The last twelve months have been so dra- Bluejacket.’’ son for leaving employment. matic in their significance upon this body and I urge all of my colleagues to join me in this Yet today, CCDBG does not do enough to the nation that it is easy to overlook the many effort to forever honor the bravery, dedication meet children’s developmental needs or par- vital human elements of this institution. I and service of the millions of men and women ents’ employment-related needs. CCDBG only choose to honor one here today. who have fought to defend this country in our requires states use 4% of its dollars to pro- I rise to pay tribute to a player on the Con- Navy. mote improved quality in child care, an insuffi- gressional stage who said farewell to this Finally, I would like to thank the efforts of cient amount since evaluations indicate that House of Democracy earlier this year; Carol Mr. John Thor Newlander of Gales Ferry, Con- the quality of most care ranges from mediocre Elise Bennett. For two decades, Carol has necticut. Mr. Newlander has served this coun- to poor. CCDBG also leads to subsidy rates been a part of the lives of those who served try in several of our military services, both ac- that frequently prohibit parents from choosing our nation in the House and Senate. tive and reserve duty, and has worked tire- or affording child care that meets their chil- In 1981, she began covering the Congress lessly on behalf of our enlisted military per- dren’s needs and their own employment for the Washington-Alabama News Report, du- sonnel and on this resolution. I thank him for needs. Care for infants and toddlers, care for tifully informing her statewide radio audience his service and his commitment to this worthy children with special needs, accredited care, of the efforts of the Alabama Congressional endeavor. non-standard hour care, and quality care in Delegation. She was the longest-serving of all f low-income and rural communities can be par- the press assigned to cover Alabama’s con- ticularly difficult for parents to choose and af- gressmen and she always performed her work INTRODUCTION OF CHILD DEVEL- ford. with professionalism and a particularly keen OPMENT AND FAMILY EMPLOY- Moreover, CCDBG funding only served 12% attention to accuracy. MENT ACT OF 2002 of eligible children in 1999. Many states have Carol had good reason to be at home waiting lists of thousands of families. And around the spotlight, having received formal HON. GEORGE MILLER though States have use some TANF block training in the theatre at the University of Brit- OF CALIFORNIA grants on child care, budgetary shortfalls and ish Columbia followed by acting roles on the IN THE HOUSE OF REPRESENTATIVES rising welfare caseloads are leading many stage and in film. However, Carol’s work and states to cut their child care and early edu- Wednesday, December 19, 2001 many interests never kept her from helping cation budgets at the very time that many par- others. She served as a volunteer reader for Mr. GEORGE MILLER of California. Mr. ents—who are leaving welfare or struggling to recordings for the blind here in Washington for Speaker, I am pleased to join my colleagues hold Jobs in the recession—desperately need more than a decade. Mr. ANDREWS, Mr. OWENS, Mr. MORAN, Mr. child care services. Since I came to Congress in 1993, 1 have HINOJOSA, Ms. LEE, Mr. FRANK, Ms. WOOLSEY, My bill will improve CCDBG by strength- personally valued my friendship with Carol, Mr. GREEN, Mr. KILDEE, Ms. MCCOLLUM, Mr. ening child care quality and resources and and I wish to thank her for her fairness and ABERCROMBIE, Mr. MCGOVERN, Ms. DELAURO, providing parents greater freedom to choose dedication to pursuing the truth. This institution and Mr. NADLER in introducing the Child De- the type of care they want and need for their is a better place because of the hard work of velopment and Family Employment Act. This child and their family. This bill increases the reporters like Carol. I think I can speak for all legislation reauthorizes the Child Care and quality set-aside from 4% to 16%, creates a the Alabama Delegation, both past and Development Block Grant to better meet the competitive grant program for States to im- present, in wishing Carol Bennett a happy and child care and after-school care needs of low- prove payment rates to providers, and re- equally rewarding retirement. income children and families. quires child care providers to have pre-service f Science conclusively demonstrates that chil- training in child development. This bill also dren’s experiences in their first 5 years of life provides money for states to provide stipends MEDICAL RURAL AMBULANCE have major and lasting effects on learning and to qualified child care providers to boost train- SERVICE IMPROVEMENT ACT OF academic success. Parents undoubtedly are ing, reduce staff turnover, and attract and re- 2001 the most significant and important influence on tain staff—all key goals in improving child care a child’s growth. But with 65% of mothers in quality. And this bill allocates additional re- HON. JOHN P. MURTHA the labor force raising children under age 6, sources so that CCDBG can be expanded to OF PENNSYLVANIA child care often provides important secondary reach one-third of the families for which it was IN THE HOUSE OF REPRESENTATIVES influences that also greatly affect a child’s de- intended. velopment. Child care simply is not just baby- In conclusion, Mr. Speaker, until we have a Wednesday, December 19, 2001 sitting. Early care is an important early learn- quality and affordable child care program, we Mr. MURTHA. Mr. Speaker, across America, ing period and if parents cannot afford to pro- will continue to miss the opportunity to maxi- Americans have come to expect and rely on vide their children with high quality care, it is mize the early development of young children our health care system, especially, emergency a missed opportunity to help develop a child’s and get them ready for learning in school. ambulance service. All to often, for many of school-readiness. Kindergarten teachers report Child care assistance can make the difference us, our first exposure to health care is the many of their students begin kindergarten cog- in a child’s reaching school age ready to learn, local EMS unit that responds to a call for help. nitively and behaviorally unprepared to learn. and it can make the difference in a family re- Unfortunately, for millions of Americans living For all our youth to achieve in school, we maining employed and off welfare. The reau- in a rural setting, this cornerstone of medical must ensure that they arrive at kindergarten thorization of CCDBG provides Congress with care is on the verge of collapse. with the skills needed to succeed in school. To a timely opportunity to achieve this urgent goal I, for one, am a strong believer in the impor- do that, parents need to be able to choose and meet our commitment to help meet the tance and the necessity of maintaining a quality child care that meets the needs of their needs of low-income children and families. Mr. strong effective EMS component within our children. Speaker, I urge Members of the House to join health care system. The question that we Child care assistance must allow eligible me and co-sponsor the Child Development must answer, as we debate health care, is, families to meet those needs. Since welfare and Family Employment Act. how prepared do we want and expect our

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00006 Fmt 0666 Sfmt 9920 E:\CR\FM\A19DE8.014 pfrm07 PsN: E20PT1 December 20, 2001 CONGRESSIONAL RECORD — Extensions of Remarks E2345 health care system to be. In an emergency, at eled thousands of miles and, sacrificed time gratitude for his dedication. I ask the House to that critical moment, the EMS unit is that crit- they could be spending with their own families, join me in extending hearty congratulations to ical link to our health care system that makes in order to take care of another’s. Mr. Hunter Hall. the difference between life and death. At the same time, corporate and small town f Unfortunately, be it ground or air, EMS for businesses alike have also searched for ways communities throughout America is under to help the victims of the September 11th at- CONFERENCE REPORT ON H.R. 1, enormous financial pressure. For many rural tacks; to speed along the search and recovery NO CHILD LEFT BEHIND ACT OF communities, EMS is in jeopardy of collapse. missions, and to lift the spirits of dedicated 2001 Typically, rural EMS is a small one or two unit workers still at the sites today. At this time I SPEECH OF service, staffed by volunteers, not affiliated would like to highlight one such business from with a hospital or medical facility, that re- Marietta and Canton, Georgia. HON. JAMES R. LANGEVIN sponds to 300 to 500 calls per year within a Williamson Brothers Bar-B-Q is a beloved OF RHODE ISLAND large radius (37 miles average) who’s greatest local landmark that came to Georgia from IN THE HOUSE OF REPRESENTATIVES danger to its existence comes from Medicare. Talladega, Alabama in 1989. Upon watching Thursday, December 13, 2001 In a growing number of instances, unrealistic and learning of the events of September 11th, and unresponsive Medicare reimbursement the restaurant’s owners, Larry and Danny Mr. LANGEVIN. Mr. Speaker, I rise today to fee schedules have done more to erode EMS Williamson, asked themselves what they could commend my colleagues Mr. MILLER and Mr. in America than any other threat to medical personally do to help. The answer was to load BOEHNER for their hard work in crafting a bi- care in this country. Because Medicare fees up two U-Haul trucks and drive up enough partisan education bill that provides real re- fail to accurately define or reflect the rural food to serve 2,000 Pentagon employees and form and real investments to make that reform medical environment, EMS is facing grave relief workers for a traditional southern feast— a reality. I am pleased that in the midst of danger of being put out of business by fee the Williamson Brothers Southern Salute. The fighting the war of terrorism, we were able to schedules that fall to recognize and reflect the trucks carried 300 chickens, 300 pounds of remain focused on our most pressing domes- actual costs confronting rural ambulance/EMS barbecued pork, 2,000 hamburgers and hot- tic priority—the education of our children. service. dogs, 50 gallons each of Brunswick stew, This bill tackles the persistent achievement Therefore, I am introducing the ‘‘Medical baked beans, and potato salad, and 500 choc- gap between poor and more affluent school Rural Ambulance Service Improvement Act of olate chip cookies; enough to truly feed a districts. Now more than ever education fund- 2001’’. This legislation will increase by 20 per- small army. ing will be targeted at the students who need cent the payment under the Medicare program The feast was a huge success and a tribute it most. For students in Providence and Cran- for ambulance services furnished to Medicare to the majesty of the Pentagon and the men ston, Rhode Island, the revised Title I funding beneficiaries in rural areas, require CMS to and women who serve there. The Williamson formula will translate into desperately needed define rural areas on population density by brothers are now considering making the books and supplies, bilingual education, more postal zip codes, increase mileage rates for Southern Salute an annual event. I would like high-quality afterschool programs, and ex- the first 50 miles and require the use of most to acknowledge Williamson Brothers Bar-B-Q, panded access to technology. In addition, H.R. recent data by CMS in determining payment and its employees, for their unparalleled spirit 1 authorizes critical funding for school con- adjustments. of community and patriotism, and thank them struction and modernization. With three-quar- For rural ambulance and EMS, the majority for a job well done. ters of our schools in disrepair, this need is of their revenue comes from Medicare reim- f overwhelming and cannot wait. bursements. Yet existing Medicare fee sched- H.R. 1 also expands access to teacher qual- ules are not accurate, nor do they reflect real- HONORING HUNTER HALL ity programs to give teachers better support, world costs confronting rural services. Due to mentoring, and salary incentives. The more their low-volume of calls and transfers, rural HON. BOB SCHAFFER support we provide to our teachers the more EMS providers will remain the hardest hit OF COLORADO effective they will be in the classroom and— under CMS’ fee schedules unless decisive IN THE HOUSE OF REPRESENTATIVES most importantly—the more students will learn. and corrective action takes place now. Wednesday, December 19, 2001 Timely and accurate reimbursement and fee While I was disappointed that the conferees schedules for ambulance/EMS services will be Mr. SCHAFFER. Mr. Speaker, it is an honor were not able to work out a compromise on critical to seeing that rural America continues to rise today to express gratitude and con- funding for students with disabilities, I am to receive emergency medical services. Citing gratulations to one of Colorado’s outstanding looking forward to working with my colleagues financial loss as the number one contributing young citizens, Mr. Hunter Hall, of Greeley, next year to ensure that IDEA receives the in- factor for services closing down, the ‘‘Medical Colorado, who recently traveled to Washington vestment it deserves. Schools across the Rural Ambulance Service Improvement Act of D.C. to sing at the White House. country are bleeding from the cost of edu- 2001’’ will level the playing field for rural EMS. This is certainly a high honor for him and for cating students with special needs. The fed- Good health requires an effective and thor- Colorado. Hunter, an eighth grader at Brent- eral government made a promise to help ease ough health care system. We all have some- wood Middle School, performs about 50 times the financial burden of educating these stu- thing to lose by not putting a halt to the ero- a year with Colorado’s Children’s Chorale. dents, and we owe it to our schools and our sion of EMS care in rural America. Therefore Hunter Hall is a hard worker and has per- children to honor that promise. But despite its I am calling on all Members to join with me formed with the highest degree of excellence. lack of full funding for IDEA, H.R. 1 is a strong and sponsor passage of this important and Everyone who has been fortunate enough to bill, and I am proud to support it. critical piece of health legislation. know Hunter speaks of his deep commitment f f to performing and the arts. I am glad to say Hunter Hall has been an inspiration not only to DAVID GRAUE, ‘‘ALLEY OOP’’ HONORING WILLIAMSON BROTH- other members of the chorale but also to his CARTOONIST ERS BAR–B–Q, MARIETTA AND family and friends. CANTON, GEORGIA Hunter and his parents make great sac- HON. CHARLES H. TAYLOR rifices for him to perform, and his commitment OF NORTH CAROLINA HON. BOB BARR never falters. This is an experience he will IN THE HOUSE OF REPRESENTATIVES look upon with pride. I stand today to honor OF GEORGIA Wednesday, December 19, 2001 IN THE HOUSE OF REPRESENTATIVES his persistence and dedication to the per- forming arts. Hunter Hall has dedicated much Mr. TAYLOR of North Carolina. Mr. Speak- Wednesday, December 19, 2001 of his time to the arts and I hope he will con- er, America lost a beloved citizen, World War Mr. BARR of Georgia. Mr. Speaker, the tinue to do so in the future. He is truly a fine II veteran, artist, and creative talent when tragic events of the past few months have example for all Americans. David Graue, 75, of Flat Rock, North Carolina, brought out the best in the hearts of Ameri- A constituent of Colorado’s Fourth Congres- was tragically killed in an early morning traffic cans across the nation. Our citizens have sional District, Hunter not only makes his com- accident on December 10th. Dave was a na- reached out their hands, opened their wallets, munity proud, but also of his state and his tive of Oak Park, Ill., and was a prior resident and given of their time, energy, and compas- country. It is a true honor to know such an ex- of Sarasota, Fla., and Brevard before moving sion in unprecedented ways. Some have trav- traordinary citizen and we owe him a debt of to Henderson County in 1987. He was a 1944

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00007 Fmt 0666 Sfmt 9920 E:\CR\FM\A19DE8.018 pfrm07 PsN: E20PT1 E2346 CONGRESSIONAL RECORD — Extensions of Remarks December 20, 2001 graduate of Sarasota High School and trained parents Lon and Linda, and the rest of his performances in the Third District of Arkansas. at the Art Institute of Pittsburgh. He was a family and friends who are grieving during this These singers and their foundation have tradi- U.S. Army Air Corps veteran of World War II. difficult time. tionally been special invited guests of the In 1950, he rejoined V.T. Hamlin, the cre- When the terrorists struck our country, our White House in several previous Christmas ator of the comic strip ‘‘Alley Oop,’’ whom he President made the difficult but appropriate seasons. However, the events of September had briefly worked with prior to the war. He decision to respond with our military. Through- 11th and the recent Executive Order closing took over sole production of the cartoon in out history, in any conflict involving American the White House to public events this Christ- 1970 and created both the art and continuity troops, Tennesseans have volunteered to mas has led the foundation to use their vocal for the strip until entering semi-retirement in serve. They have fought and died in every talents back home in Arkansas instead by per- 1991. Upon retirement he turned his attention corner of the world to protect freedom. Master forming at three different Northwest Arkansas to the fine arts and painting, working mostly Sgt. Davis answered the call of his country, locations to honor the victims of September with oils, and won several awards for his work. and his death will forever inscribe his name on 11th and our nation. Dave Graue will be dearly missed by his the roll of heroes who have made the ultimate The Barbara Mashburn Foundation, as the family, friends, members of the community, sacrifice, giving their life in order to protect the only vocal music scholarship program of its and countless ‘‘Alley Oop’’ fans around the lives of others. His efforts should remind us all kind in the nation, was formed in 1993 by Dr. country. Dave will be remembered for the spe- that the liberties we enjoy do not come without James and Barbara Mashburn of Fayetteville. cial Christmas cards he sent to all his friends, a price. Let us always remember these costs, The Foundation, funded entirely through dona- cards that showcased his artistic talents. His and always remember Master Sgt. Jefferson tions, fundraising events, grants and an an- last one commemorated the September 11th Donald Davis. nual gift by the founders, the Mashburns terrorist attacks on America. f themselves. Patrons of these events have told I know my colleagues join me in expressing me of the excellent job these young people sympathy to Dave’s family: his loving wife, COMMENDING ST. CHARLES have done in promoting patriotism during this Eliza B. Graue, sons Jeff and Dan, daughter SCHOOL IN LIMA holiday season. Karin Dowdy, seven grandchildren: Jordan On this day, when we remember the impor- Dowdy, Griffin Dowdy, Kelen Dowdy, Kristin HON. MICHAEL G. OXLEY tance of the holidays before us and the resur- Graue, Lauren Graue, Shannon Graue and OF OHIO gence of patriotism in this country, I would like Cian Graue. IN THE HOUSE OF REPRESENTATIVES to salute the Barbara Mashburn Singers for f Wednesday, December 19, 2001 their efforts to promote the well-being of our nation. We don’t often see individuals with HONORING THE LIFE OF MASTER Mr. OXLEY. Mr. Speaker, I would like to bring to your attention the care and concern foresight and personal sacrifices as the SERGEANT JEFFERSON DONALD Mashburns have displayed. They continue to DAVIS that students at St. Charles School in Lima, Ohio are showing for children in Afghanistan. invest their personal time and finances to The students in Lima learned about the des- mentor a new generation of contemporary mu- HON. WILLIAM L. JENKINS perate condition of Afghanistan’s children. sicians, vocalists and performers. Each of the OF TENNESSEE Through no fault of their own, the children of Barbara Mashburn Foundation Scholarship IN THE HOUSE OF REPRESENTATIVES this war-ravaged nation are facing a hard win- students gains much more than a musical Wednesday, December 19, 2001 ter without many of the basic necessities of scholarship, these students take part in lead- life. Their families often must struggle just to ership conferences; attend financial seminars Mr. JENKINS. Mr. Speaker, I rise today to and luncheons on manners; prepare and meet ask the Congress to honor the memory of find their daily food. St. Charles School students took the initia- budgets and they become goodwill ambas- Master Sgt. Jefferson Donald ‘‘Donnie’’ Davis, sadors through the promotion of their positive an American hero. tive and collected $1000 to donate to the Af- ghan Children’s Fund at the White House. lifestyles and the role music can play in every- Master Sgt. Davis was killed in action in Af- day life. ghanistan on December 5th while participating They presented the check to my office during a school assembly. I, in turn, will make sure Mr. Speaker, I ask my colleagues to join in Operation Enduring Freedom. He was a with me today in honoring the great tradition of member of the Army’s 5th Special Forces that the donation is delivered to President George W. Bush. the Barbara Mashburn Scholarship Foundation Group stationed at Fort Campbell, Kentucky. and its talented singers. Their usual perform- Yesterday, Master Sgt. Davis was buried Since the events of September 11th, the President has said many times that the United ance at the White House this Christmas sea- with full military honors near his birthplace in son will certainly be missed. May they soon Watauga, Tennessee. He had made a career States is at war with terrorists—not with the country of Afghanistan, and certainly not with return to Washington, DC and the White out of the military, serving in Korea, the Middle House Christmas celebrations of future years, East during Operation Desert Storm, Somalia, its innocent children. It is my hope that Af- ghanistan’s new government will devote itself and may they continue to serve as role mod- and Afghanistan. els for the young people of America. It is the ultimate sacrifice when a soldier to building a peaceful society where children f dies for his country. We are able to enjoy the are able to lead normal lives free of war and freedoms we have today because of men like hunger. INTRODUCTION OF BILL TO CLAR- The donation by the students at St. Charles Master Sgt. Davis and the hundreds of thou- IFY TAX TREATMENT OF CER- School will bring comfort to needy children a sands of Americans who have given their lives TAIN ENVIRONMENTAL ESCROW half-world away. I commend them for the gen- in the fight for American principles over the ACCOUNTS erous spirit that they have shown during this past 225 years. Master Sgt. Davis knew the season of peace and goodwill. particular risks of being a Green Beret and f HON. AMO HOUGHTON gladly accepted them. He was aware of the OF NEW YORK immediate dangers faced by those men, the HONORING THE BARBARA IN THE HOUSE OF REPRESENTATIVES elite fighting soldiers that this country depends MASHBURN SCHOLARSHIP FUND Wednesday, December 19, 2001 upon in times of crisis. Time and time again, AND THE BARBARA MASHBURN Master Sgt. Davis answered the call of his SCHOLARSHIP SINGERS Mr. HOUGHTON. Mr. Speaker, I am country, left his family and home, and served pleased to join my colleague from California, with distinction wherever he was sent. HON. JOHN BOOZMAN Mr. BECERRA, together with my colleagues, Mr. Master Sgt. Davis was a professional sol- BOEHLERT from New York and Mr. COYNE from OF ARKANSAS dier, a man who had earned the respect of his Pennsylvania, in introducing a bill intended to IN THE HOUSE OF REPRESENTATIVES fellow soldiers, and he was remembered fond- clarify the tax treatment of certain environ- ly by all whom had come to know him over the Wednesday, December 19, 2001 mental escrow accounts. The provisions in the 39 years of his life. He was also remembered Mr. BOOZMAN. Mr. Speaker, I rise today to bill would encourage prompt and efficient set- locally as the kind of young man that every honor the Barbara Mashburn Scholarship tlements with the Environmental Protection parent wants his or her son to be like. Fund and the Barbara Mashburn Scholarship Agency (‘‘EPA’’) for the clean-up of hazardous I know I speak for the entire Congress when Singers. waste sites. I extend sympathies to Master Sgt. Davis’ wife Recently, the Barbara Mashburn Singers Currently, there is some uncertainty in the Mi Kyong, his children Cristina and Jesse, his gave three very patriotic and festive holiday tax treatment of certain ‘‘settlement funds’’

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00008 Fmt 0666 Sfmt 9920 E:\CR\FM\A19DE8.022 pfrm07 PsN: E20PT1 December 20, 2001 CONGRESSIONAL RECORD — Extensions of Remarks E2347 which are, in effect, controlled by the EPA, in tionally, a POW/MIA bracelet is worn until Throughout her long career as an educator, their role of resolving claims under the Com- the man named on the bracelet is accounted Mrs. Sly has been recognized for her excel- for, whether it be 30 days or 35 years. prehensive Environmental Response, Com- I bought my bracelet in 1970 for $2.50. It lence not only by her students, but also by her pensation and Liability Act of 1980 has, ‘‘Lt. Col. Samuel Johnson, April 16, fellow professionals. She has received numer- (‘‘CERCLA’’). This uncertainty may prevent 1966’’ engraved on it. I wore the bracelet ous awards, both as a teacher and a principal. taxpayers from entering into prompt settle- faithfully for many years, but eventually In fact, just last year, her school won the 2000 ments with the EPA for the cleanup of Super- took it off and put it away. But every time California Distinguished School Award, a true fund hazardous waste sites and reduce the ul- I opened my jewelry box, I saw it. And every testament to her exceptional stewardship. time I saw it, I was saddened, and I thought timate amount of funds available for cleanup Not only does Mrs. Sly help develop and of such sites. of Lt. Col. Johnson, and I said a little prayer. The bracelet led to my first foray into the educate our youth, but she also works to de- Under our bill, if certain conditions are met, wonderful world of e-Bay, the on-line auction velop her fellow educators. For example, she the EPA (U.S. government) will be considered service, where I listed it for sale. I thought currently serves as a mentor for new prin- the beneficial owner of funds set aside in an that anyone who would buy it would treasure cipals and an advisor to the teacher environmental settlement fund account. These it and it would be out of my sight, out of my credentialing program. She is also active in conditions include the fund being: (1) estab- mind. To my surprise, bidding on the brace- community outreach, expressing her philos- let was brisk. lished pursuant to a consent decree; (2) cre- ophy eloquently: ‘‘We must expand the four ated for the receipt of settlement payments for On the seventh, and final, day of the auc- tion, my husband George asked me if I knew walls of our school site and guide children to the sole purpose of resolving claims under what had happened to Col. Johnson. ‘‘No,’’ I take advantage of every learning opportunity.’’ CERCLA; (3) controlled (in terms of expendi- replied. ‘‘I never wanted to know.’’ But As a teacher at Baldwin Elementary, my wife, tures of contributions and earnings thereon) by George went to the Internet, and returned Jeanne, has benefited from Mrs. Sly’s holistic the government or an agency or instrumen- with information. Of the more than twenty- approach to education. As a fellow long-time tality thereof; and (4) upon termination, dis- five hundred POWs, and the three to six educator myself, I express my deep respect thousand MIAs, only 591 men returned. My bursed to the government or an agency or in- and sincere admiration for Sue Galbreath-Sly strumentality thereof (e.g., the EPA). If such brother did not. After spending seven years as a prisoner of war, Sam Johnson did. and her life’s work. conditions are met, the EPA will be considered I was so happy I cried. the beneficial owner of the escrow account for When I contacted Congressman Johnson’s f tax purposes and the account will not be con- office, his aide, McCall Cameron, told me sidered a grantor trust for purposes of Sec- that he and Mrs. Johnson were on vacation LT. GEN. JOHN M. PICKLER, U.S. tions 468B, and 671–677 of the Internal Rev- with their grandchildren. ARMY enue Code. Grandchildren! More tears. Congressman Johnson said he would very These escrow accounts, which are estab- much like to have his bracelet. So, I can- lished under court consent decrees, are a nec- celled the e-Bay auction, and today I am re- HON. JOEL HEFLEY essary tool to enable the EPA to carry out its turning this souvenir. In the words of Randy OF COLORADO responsibilities and resolve or satisfy claims Sparks, ‘‘A million tomorrows will all pass under CERCLA. Under these types of consent away, ere I forget all the joy that is mine IN THE HOUSE OF REPRESENTATIVES decrees, the EPA should be considered the today.’’ Wednesday, December 19, 2001 owner of such funds for Federal tax purposes. And in my own words, I say to Sam, fi- nally, ‘‘Welcome home.’’ Due to the uncertainty as to the proper Fed- To Dr. Tracy, I say, ‘‘Thank you. We will Mr. HEFLEY. Mr. Speaker, I attended the eral income tax treatment of such government- never forget. God bless you.’’ retirement parade for Lieutenant General John controlled funds, taxpayers may be hesitant to Pickler. It was a sad day for the Army as they f promptly resolve their claims under CERCLA were losing one of their best to the retired by contributing to the settlement funds. One of COMMEMORATING THE RETIRE- roles. It was also a sad day for me personally the underlying purposes of CERCLA is to en- MENT OF SUE GALBREATH-SLY as over the years John and his wife Karen sure prompt and efficient cleanup of Super- have become close friends. I rise today not; fund hazardous waste sites. This goal is being HON. MICHAEL M. HONDA however, to remark on the retirement of a frustrated by the existing uncertainty in the tax OF CALIFORNIA great soldier but to thank him for a lifetime of laws. IN THE HOUSE OF REPRESENTATIVES service to our country. The bill resolves these uncertainties and ex- Wednesday, December 19, 2001 General Pickler leaves the Army after over pedites the cleanup of Superfund hazardous 36 years of dedicated service to our Nation waste sites by treating these escrow accounts Mr. HONDA. Mr. Speaker, I rise today to recognize the outstanding career of Principal and the soldiers that he loves. His biography as being beneficially owned by the U.S. gov- is distinguished. ernment and not subject to tax. We urge our Sue Galbreath-Sly. She is set to retire at the colleagues to join us in cosponsoring this leg- end of this academic year from a long and dis- Lieutenant General John M. Pickler as- islation. tinguished life in the field of education. Cur- sumed the duties of the Director of the Army rently serving in her eighth year as principal of f Staff on 17 August 1999. the Julia Baldwin Elementary School, Mrs. Sly, A native of Chattanooga, Tennessee, Gen- AMONG MY SOUVENIRS as the students call her, started teaching in eral Pickler was graduated from the United 1960. Nearly forty-two years later, Mrs. Sly States Military Academy, West Point, and HON. SAM JOHNSON has served as an educator in three states— commissioned in the Field Artillery on 9 June OF TEXAS Kentucky, Ohio, and California—at both the el- 1965. He was awarded a Master of Science in ementary and secondary levels, in the class- IN THE HOUSE OF REPRESENTATIVES Physics from the University of Virginia in 1971. room and as an administrator. Wednesday, December 19, 2001 Sue Galbreath-Sly began her career as a Prior to assuming duties as the Director of the Army Staff, he served as Chief of Staff, Mr. SAM JOHNSON of Texas. Mr. Speaker, teacher in Kentucky in 1960, and the spirit of United States Army Forces Command, Fort I submit the following article by Kay Blythe teaching has remained strong in her to this McPherson, Georgia; Commander, Fort Car- Tracy, Ph.D.: day. Visiting the principal’s office at Baldwin Elementary today, one might wonder if it is a son, Colorado and Deputy Commanding Gen- Americans now are inspired and united by eral, III Corps; Deputy Commanding General, every musical note of ‘‘God Bless America.’’ classroom because it is always filled with stu- But back in the sixties, we were a nation in dents seeking Mrs. Sly’s guidance and friend- XVIII Airborne Corps and Fort Bragg, North discord, singing many different tunes. Rod- ship. She successfully presents herself to her Carolina; Commanding General of Joint Task gers and Hammerstein wrote songs of Cam- students as just another teacher; however, Force Six, Fort Bliss, Texas; and Assistant Di- elot, while Pete Seeger asked, ‘‘Where have she is anything but ‘‘just another teacher.’’ vision Commander (Support), 4th Infantry Divi- all the young men gone?’’ Rather, she is the best kind of teacher, seeing sion (Mechanized), Fort Carson, Colorado. The story I’m going to tell you today is about what happened to one of those young her educational mission as a year-round job— General Pickler has held a wide variety of men. This story began in the sixties, when spending weekends chaperoning students to Field Artillery positions from battery through POW/MIA bracelets were conceived as a way various competitions, fairs, and conferences corps, culminating as the Chief of Staff, III to remember missing or captive American and recruiting students for summer enrichment Corps Artillery and the Director of Plans, prisoners of war in Southeast Asia. Tradi- programs. Training and Mobilization, Fort Sill, Oklahoma.

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00009 Fmt 0666 Sfmt 9920 E:\CR\FM\A19DE8.026 pfrm07 PsN: E20PT1 E2348 CONGRESSIONAL RECORD — Extensions of Remarks December 20, 2001 Other key assignments include Instructor and and pay tribute to a leader in the firefighting the European and North African/Middle East Assistant Professor in the Department of community—Clifton Armstead outgoing Chief theaters. After the war, Jim returned to the Physics at West Point; Executive Officer to the of the Wilmington Fire Department. Clifton United States and in 1948 enlisted in the Air Director, Defense Nuclear Agency; Com- Armstead is an outstanding, dedicated and Force. He quickly rose among the ranks and mander of 2d Battalion, 81st Field Artillery, 8th caring Delawarean with an abundance of ac- in 1957 achieved the rank of Major. Jim Infantry Division (Mechanized) with concurrent complishments in this field. On behalf of my- served in both the Korean and Vietnam wars, duty as Commander of the Idar-Oberstein self and the citizens of the First State, I would and in 1968 voluntarily retired as a Lieutenant (Germany) Military Sub-community. Following like to honor this outstanding individual and Colonel. He has been honored with numerous command, he was assigned as the 8th Infan- extend to him our congratulations on his 36 medals ranging from the WWII victory medal try Division Inspector General. In 1987, he re- years in the fire department. to the National Defense Service Medal as well turned to Germany as Commander, 8th Infan- Today, I recognize Clifton Armstead for his as the Air Force Longevity Service Award with try Division Artillery in Baumholder, and then long and distinguished career in the Wil- four Oak Leaf Clusters. became the Executive Officer to the Chief of mington Fire Department. On January 4th After a distinguished career in the Air Force, Staff of the Army, Washington, DC, in 1989. In 2002 Mr. Armstead will officially retire from a Mr. Rees established himself in Riverside and addition to Germany, his overseas assign- post that he has held since 2000, but from a went into the banking business. He served the ments include Vietnam and Turkey. fire department that he has been part of for community with the same care and dedication General Pickler is a graduate of both the over three decades. He has provided service he had served our country. An avid golfer, Jim Command and General Staff College, Fort in a manner that has brought distinction not was instrumental in the revitalization of the Leavenworth, Kansas, and also the Army War only to himself but to the entire Wilmington March Air Force Base golf course. Jim has College with duty as an Advanced Operational Fire Department. also been active in the Strategic Air Command Studies Fellow at the Combined Arms Center, Family, friends and fellow firefighters can Group of Veterans and has always been Fort Leavenworth. His awards and decorations now take a moment to truly appreciate the proud to call himself a team player. include the Distinguished Service Medal; the world of difference Clifton Armstead has A love of country can only be matched by Defense Superior Service Medal with Oak brought to the firefighting community. He has a love of family. Mr. Rees has four children, Leaf Clusters; the Legion of Merit with Three served for many years as a member of En- Christine, Susan, Laura, and David, five Oak Leaf Clusters; the Distinguished Flying gine, Ladder and Rescue Companies as well grandchildren, Amy, Jennifer, Jim, Ian, and Cross; the Bronze Star with ‘‘V’’ Device; and as the Training Unit. Mr. Armstead was pro- Susan and great-grandchild, Samuel who all the Meritorious Service Medal with Three Oak moted to Lieutenant in 1983 and appointed refer to him as their hero. No greater honor Leaf Clusters. Deputy Chief of Operations in 1993 where he can be bestowed on a man who has selflessly General Pickler and his wife, Karen, have served for seven years before being appointed and wholeheartedly served our great nation. one daughter, Nevelyn, and two sons, Andy Chief of Fire in January of 2000. Mr. Speaker, looking back at Jim’s life, we and Jeff. Clifton E. Armstead has spent all of his life see a man dedicated to military service and General Pickler attended his last parade as helping the community of Wilmington and all community—an American whose gifts to the a soldier on Monday, 29 October 2001. I am of Delaware. Mr. Armstead graduated with the Inland Empire and California led to the better- proud to have had the opportunity to attend it Class of 1962 from Wilmington High School. ment of those who have the privilege to come and witness the retirement of a friend. He also attended Delaware Technical and in contact or work with Jim. Honoring him f Community College, the National Fire Acad- today is the least that we can do for all that emy and the Delaware State Fire School. Of he has given over the past 80 years of his life. PERSONAL EXPLANATION particular interest are the many supervisory f and management classes that have helped HON. BOB RILEY him to become such a successful and impor- RAYMOND M. DOWNEY POST OFFICE BUILDING OF ALABAMA tant leader to the City of Wilmington. Mr. Speaker, with his wife Dawn at his side, IN THE HOUSE OF REPRESENTATIVES SPEECH OF and his daughter Jaye, the Armstead family Wednesday, December 19, 2001 proudly and unselfishly contributes every day HON. JAMES T. WALSH Mr. RILEY. Mr. Speaker, I was unavoidably to the quality of life at home in their commu- OF NEW YORK detained for rollcall No. 499, H.R. 3379, to nity and our entire state. IN THE HOUSE OF REPRESENTATIVES designate the facility of the United States Mr. Clifton E. Armestead’s contributions Tuesday, December 18, 2001 Postal Service located at 375 Carlls Path in cannot be commended enough. As he retires Deer Park, New York, as the ‘‘Raymond M. from the Wilmington Fire Department we can Mr. WALSH. Mr. Speaker, as an original co- Downey Post Office Building.’’ Had I been be sure that his contributions will not end. His sponsor of H.R. 3379 introduced by Congress- present I would have voted ‘‘yea.’’ commitment to fighting fires and saving lives man ISRAEL, I also rise in strong support of the I was also unavoidably detained for rollcall has earned him a permanent place in Dela- Raymond M. Downey Post Office Building No. 500, H.R. 3054, to award congressional ware’s fire service history. Designation Act. This legislation is a small, but fitting, tribute to one of New York City’s brav- gold medals on behalf of the officers, emer- f gency workers, and other employees of the est fire chiefs. Federal Government and any State or local TRIBUTE TO JAMES K. REES Chief Downey was the most decorated government, including any interstate govern- member of the New York City Fire Department mental entity, who responded to the attacks HON. KEN CALVERT and leader of the department’s special oper- on the World Trade Center in New York City OF CALIFORNIA ations unit. At age 63 with 39 years on the and perished in the tragic events of Sep- IN THE HOUSE OF REPRESENTATIVES job, Chief Downey was a ‘‘firemen’s fireman’’ tember 11, 2001. Had I been present I would as they say in the fire service. He was a na- Wednesday, December 19, 2001 have voted ‘‘yea.’’ tional expert on urban search and rescue and f Mr. CALVERT. Mr. Speaker, I rise today to led a team of New York City firefighters who pay tribute to a most exceptional California In- responded to the 1995 Oklahoma City bomb- TRIBUTE TO CLIFTON E. land Empire community leader, friend and ing. Chief Downey even testified before a ARMSTEAD, OUTGOING CHIEF OF great American—Mr. James Rees. House committee in 1998 on the topic of THE WILMINGTON FIRE DEPART- Calvin Coolidge, America’s 13th President, weapons of mass destruction, sharing his val- MENT once said, ‘‘No person was ever honored for uable knowledge with our colleagues. He truly what he received; honor has been the reward defined what is meant by calling New York HON. MICHAEL N. CASTLE for what he gave.’’ And Jim Rees gave much City firefighters the ‘‘world’s bravest.’’ OF DELAWARE during his years of military service and bank- As I watched the events of September 11th IN THE HOUSE OF REPRESENTATIVES ing career. unfold in my Washington office with my staff, With true valor and love of country, Mr. I remember thinking, God be with the fire- Wednesday, December 19, 2001 Rees voluntarily enlisted in the United States fighters who are going in there to save lives. Mr. CASTLE. Mr. Speaker, it is with great Army in 1942 and became an Officer in 1944. As a true leader Chief Downey was on the pleasure that I rise today as a member of the Like many other members of the Greatest front lines with his personnel directing the res- Congressional Fire Service Caucus to honor Generation he served in World War II in both cue efforts. As he had done in the first World

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00010 Fmt 0666 Sfmt 9920 E:\CR\FM\A19DE8.029 pfrm07 PsN: E20PT1 December 20, 2001 CONGRESSIONAL RECORD — Extensions of Remarks E2349 Trade Center bombing in 1993, Chief Dow- and the poise, charisma, and dedication rarely We’ve heard talk of tax breaks for wealthy ney’s efforts saved thousands of lives. Sadly, seen in a young woman of her age, Jessica individuals. with 343 of his men, Chief Downey made the was well on her way to being a great Senator. Well, I’m here to tell you that won’t work for ultimate sacrifice on that tragic day. The State of Louisiana, her electric coopera- the community I represent! It is said that a firefighter’s first act of her- tive family, and America will miss her. Some of the cities in my congressional dis- oism is taking the oath to become a firefighter. As her high school graduating class motto trict are facing unemployment levels as high From there on, the rest is just part of the job. said: as nine percent. Nine percent! As we recognize Chief Downey today, it is im- The past is but the beginning of a beginning, People who are being laid off need help portant to remember not only his heroic deeds and all that is now—not in the future. of September 11th, but his extraordinary fire- and has been is but the twilight of the dawn. They need to make sure their unemploy- fighting career as well. His wife Rosalie com- (H.G. Wells) ment benefits last long enough to help their mented, ‘‘He never complimented himself. He May the light of that dawn shine upon Jes- family make it through the new year. always did what he had to do.’’ We as a na- sica Caroline Aiton forever more. They need to make sure their health care tion are forever grateful for what Chief Dow- f doesn’t disappear, leaving their families in the ney and his fellow firefighters did on Sep- lurch. tember 11th. We are also grateful for what our IN TRIBUTE TO MARILYN HUGHES I urge the leadership of this House to do the nation’s firefighters continue to do everyday in GASTON, MD right thing for American families and pass a this country, saving lives and property. The real economic stimulus plan which gives hard- spirit of Chief Downey will continue to live on HON. DONNA M. CHRISTENSEN working families a real boost! through this post office in Deer Park and in OF THE VIRGIN ISLANDS f the fire service forever. IN THE HOUSE OF REPRESENTATIVES HONORING EMERGENCY SERVICE f Wednesday, December 19, 2001 WORKERS DURING LOCAL HE- ROES WEEK JESSICA CAROLINE AITON (1983– Mrs. CHRISTENSEN. Mr. Speaker, after a 2001), 2000–01 YOUTH LEADERSHIP twenty-five year career in the U.S. Public COUNCIL REPRESENTATIVE Health Service, Marilyn Hughes Gaston, MD, HON. CHET EDWARDS (LOUISIANA NATIONAL RURAL Director of the Bureau of Primary Health Care, OF TEXAS ELECTRIC COOPERATIVE ASSO- within the Health Resources and Services Ad- IN THE HOUSE OF REPRESENTATIVES CIATION) ministration, is resigning and making her tran- Wednesday, December 19, 2001 sition into the private sector. Mr. EDWARDS. Mr. Speaker, it is particu- HON. RICHARD H. BAKER Dr. Gaston began her career as a physician. larly fitting, in the wake of the tragic events of OF LOUISIANA She received her medical degree from the September 11th, 2001 and the courageous IN THE HOUSE OF REPRESENTATIVES University of Cincinnati College of Medicine and selfless acts of heroism by New York’s and completed a residency training in pediat- Wednesday, December 19, 2001 police, firefighters and rescue workers which rics. Her work over the years has been were witnessed and acclaimed by the world, Mr. BAKER. Mr. Speaker, Jessica Caroline marked by staunch advocacy for the better- that we extend our gratitude to police, fire and Aiton of Greenwell Springs, LA died on Mon- ment of the health status of minorities, women emergency service workers in all of America’s day, December 17, 2001, at the age of 18, fol- and children. Dr. Gaston is an internationally communities. The citizens of Bell County and lowing a tragic car accident. Jessica served as recognized leader in sickle cell research and Copperas Cove, Texas in my congressional the 2000–2001 Youth Leadership Council her contributions to the field have resulted in district are honoring these public servants, Representative from her state for the National significant changes in the way the disease is from November 18–24, during the 10th ob- Rural Electric Cooperative Association. This treated and managed in children. servance of Local Heroes Week. means that she was one of the best and She is the first African American woman to This expression of appreciation to our local brightest students from rural America and from direct a U.S. Public Health Service Bureau public safety workers for their service to Cen- Louisiana. and she commands a primary health care tral Texas, which has grown every year since Every year, the National Rural Electric Co- budget that reaches $5 billion. Under her lead- its inception in 1992, raises funds from area operative Association (NRECA), through its ership millions of vulnerable and disadvan- businesses and organizations to endow schol- nearly one thousand member cooperatives, taged populations nationwide are assured ac- arships at Central Texas College for their im- hosts the Washington, DC Youth Tour. This cess to quality, culturally and linguistically mediate families. program brings 1,300 high school students competent, primary and preventive health As a community, we owe a special thanks from across rural America to visit their Na- care. Along with her numerous other acco- to the police officers, fire fighters and emer- tion’s Capital to learn about their heritage, and lades, she is a former Assistant Surgeon Gen- gency workers we honor and our sincere ap- about their electric cooperatives. On average, eral and the second African American woman preciation to those who organize Local Heroes Louisiana brings 25 students each year. From to reach Rear Admiral, the highest rank in the Week. The recent tragedies at the World this group, the state association selects one U.S. Public Health Service. Trade Center in New York and at the Pen- outstanding individual to be its youth spokes- Recently, Dr. Gaston co-authored ‘‘Prime tagon in Arlington, Virginia remind us that person for the year and to serve on the Time,’’ a health and wellness book for African every day, in every city and county in the NRECA national Youth Leadership Council. American women in the midyears. She is a country, these men and women put their lives Jessica was selected as the representative for phenomenal leader and mentor. Her work has on the line to protect us from harm. the 2000–2001 school year. She was one of touched the lives of many and her presence in Mr. Speaker, I ask the Members of the just 41 nationally appointed to this honor. the Public Health Service will be genuinely House of Representatives to join me in hon- Jessica had been an honor student at Cen- missed! oring these local heroes, in Copperas Cove tral High School where she graduated third in f and Bell County, and across the nation. They her class. This past fall, she started her fresh- NEED FOR ECONOMIC STIMULUS define the spirit of public service and we are man year at LSU. She began as an Account- grateful. ing major and then changed to Chemical Engi- neering. Next spring, she had planned to take HON. HILDA L. SOLIS f some political science classes, with an eye to- OF CALIFORNIA TRIBUTE TO ARMY SPECIALIST ward law school and politics. As she once said IN THE HOUSE OF REPRESENTATIVES JONN JOSEPH EDMUNDS of her future in an email to one of her former YLC counselors, ‘‘All I know is that I want to Wednesday, December 19, 2001 HON. BARBARA CUBIN go to law school and eventually become a Ms. SOLIS. Mr. Speaker, there’s been a lot OF WYOMING Senator. That much is clear.’’ Jessica was of talk here about the need to get our econ- IN THE HOUSE OF REPRESENTATIVES also an active member of the Denham Springs omy jump-started and about the best way to Church of Jesus Christ of Latter-day Saints, get that done. Wednesday, December 19, 2001 loved to run and ride horses, and had just re- We’ve heard talk of tax cuts for big business Mrs. CUBIN. Mr. Speaker, I am honored to cently joined the College Republicans. With a that will eventually trickle down to the rest of represent the great state of Wyoming in this heart for God, an incredible desire to serve, America. House of Representatives.

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00011 Fmt 0666 Sfmt 9920 E:\CR\FM\A19DE8.033 pfrm07 PsN: E20PT1 E2350 CONGRESSIONAL RECORD — Extensions of Remarks December 20, 2001 Nothing reminds me more clearly of the true HONORING MARINE CPL. by a gifted performance by a young man nature of that honor than each time I look CHRISTOPHER T. CHANDLER named Reid McKinney, who earned honors as upon the brave men and women who wear the the game’s most valuable player. McKinney uniforms of America’s armed forces. HON. THOMAS G. TANCREDO displayed great talent and leadership exem- I have had the pleasure of meeting many of OF COLORADO plary of all his teammates on both sides of the these young patriots. Other times I see their IN THE HOUSE OF REPRESENTATIVES ball, throwing three touchdowns and running for three more, including a fumble recovery for dedicated faces in newspaper photos back Wednesday, December 19, 2001 home to announce their achievements. a touchdown that sealed the game. Mr. TANCREDO. Mr. Speaker, I rise today Their impressive 26-year-old head coach, One such photo that I’ve viewed for the to pay tribute to Marine Cpl. Christopher Bo Hembree, led and inspired his team to per- most tragic of reasons pictures Army Spe- Chandler—who is without a doubt one of form at a championship level throughout the cialist Jonn Joseph Edmunds of Cheyenne, America’s finest soldiers who fought in Oper- season. With each game, these young men Wyoming. ation Enduring Freedom. demonstrated amazing hard work, dedication, Jonn Edmunds was one of two Army Rang- On Sunday, December 16th, our nation and character. I commend the entire team and ers killed on Friday, October 19, 2001, in the learned that Marine Cpl. Christopher Chan- the coaching staff both collectively and as indi- crash of a helicopter in Pakistan. Jonn and his dler—of the 1st Light Armored Reconnais- viduals for a remarkable season, and I ap- fellow Ranger were the first American combat- sance Battalion, 1st Marine Division—lost his plaud Coach Hembree for instilling in his play- related deaths of our necessary new war. leg in a land mine explosion while guarding ers the characteristics of leaders and cham- Look at this young mans portrait and you’ll explosive-clearing teams at the Kandahar pions that they will be able to draw from for instantly recognize a fierce determination to be International airport in Afghanistan—his mis- the rest of their lives. a good warrior, a good American, and a good sion—to clear unexploded munitions and These students and their success are a trib- citizen. mines to help launch international humani- ute to their parents, their school, and the en- The military men and women defending this tarian efforts and other military operations in tire Warren community. Not only the coaches nation and its magnificent principles in and the area. Injured with Cpl. Chandler were Sgt. and players, but also the band, cheerleaders, around Afghanistan have left their homes in lit- Adrian Aranda and Lance Cpl. Nicholas Sov- students, teachers, and all those who sup- tle towns and big cities all across our country ereign, who suffered serious shrapnel wounds ported this team can take pride in their role in to serve us all. in the explosion. bringing about this accomplishment. I con- Jonn’s treasured home was Cheyenne, Wy- Chandler, a 21-year-old soldier from Aurora, gratulate Warren High School and the city of oming. He belonged to the Future Business Colorado, entered the Marine Corp. in June Warren as they celebrate this momentous Leaders of America, was a Wyoming Boys 1998, immediately after graduating from Gate- achievement. State delegate, lettered in academics, and way High School. f Mr. Speaker, I am honored to represent Cpl. played soccer. Chandler, his parents Kenneth and Rumi, and A TRIBUTE TO COMMANDER He graduated from East High School in sister Stephanie in the U.S. House of Rep- WILLIAM EBBS 1999 and quickly joined the Army. resentatives. Our nation is forever indebted to He became a Ranger five months later and Cpl. Chandler for his self-sacrifice and admi- HON. JERRY LEWIS was based in Fort Benning, Georgia as a rable actions taken on Sunday, December 16, OF CALIFORNIA member of the 75th Ranger regiment. 2001—for they will be etched in the memory IN THE HOUSE OF REPRESENTATIVES Jonn’s promising future was accompanied of America’s new war against terrorism and Wednesday, December 19, 2001 by a sworn, sincere promise to serve . . . a never forgotten. promise this young man would never dream of f Mr. LEWIS of California. Mr. Speaker, I rise breaking . . . a promise that led to this tragic today to pay tribute to Commander William WARREN HIGH SCHOOL’S loss. Ebbs, who provided invaluable service to Con- TRIUMPHANT SEASON gress on national security issues for two years In a paper written for a high school class a as a congressional liaison in the Office of the few short years ago, Jonn discussed his plans HON. MIKE ROSS Navy’s Director of Budget, and who will soon for a long-term Army career. He said, ‘‘I will be be on the front lines of our nation’s defense as contributing to myself as well as for the de- OF ARKANSAS IN THE HOUSE OF REPRESENTATIVES commander of a submarine. fense of this country and for the betterment of Originally from Atlanta, Georgia, CDR Ebbs the world.’’ Wednesday, December 19, 2001 enlisted in the Navy in May 1976. He com- No one should doubt that Jonn Edmunds Mr. ROSS. Mr. Speaker, educating our pleted boot camp at the Naval Training Cen- was ready and willing to join the fight against young people is arguably as important as any ter, San Diego and attended Nuclear Power terrorism and to help seek justice for the evils issue we deal with not only in the halls of Training at the Naval Training Center, Or- our nation has endured since the September Congress, but also in our everyday lives as lando, Florida. At the completion of his quali- 11 attacks. parents and as members of our respective fication as a nuclear propulsion plant operator, His father Donn told reporters, ‘‘I’m ex- communities. Each day, our children learn im- he was assigned to USS Von Steuben SSBN tremely proud of my son. He was doing what portant lessons in the classroom that will pre- 632, a Lafayette class fleet ballistic missile he wanted to do.’’ pare them for the days and years ahead, and submarine. After four strategic patrols on Von I’ve called Jonn’s family to express my grief we must make sure that they are given the Steuben, he was detailed in 1979 as a mem- at their loss. My prayers are with his father tools they need to compete in the 21st Cen- ber of the ship’s refueling/overhaul crew. It Donn and mother Mary, his brother Seth and tury. was during this time that CDR Ebbs applied sister Alyssa, Anne, his wife of less than a In addition to work in the classroom, another for and was accepted to participate in the year, and his other family members and important aspect of the school experience that Navy Enlisted Commissioning Program. Under friends. I pray that the pain of their sorrows can play a valuable role in the academic as this program, CDR Ebbs attended Auburn Uni- will be softened over time by sweet and loving well as social development of a young person versity and graduated with honors with a memories. is athletics, teaching the values of teamwork, bachelor’s degree in Electrical Engineering. leadership, dedication and perseverance. In Commissioned an Ensign after attending Of- Despite their terrible loss, Jonn’s family has that spirit, I would like to recognize and con- ficer Candidate School in Newport, Rhode Is- told us all that their support for President Bush gratulate a high school football team in my land, CDR Ebbs was designated a submarine and Operation Enduring Freedom remains congressional district that exemplified those officer and assigned to the USS Key West strong. When I think of Jonn and his family, I qualities, the Warren High School Lumber- SSN 722, then the Navy’s newest Los Ange- am humbled. Every American should be. jacks in Warren, Arkansas, who recently won les Class Fast Attack submarine. During this And we all should be thankful for this gift of their school’s first AAA Boys High School time, the Commander, Submarine Squadron honor and dedication in the name of justice State Football Championship. Eight, recognized him as the ‘‘1989 Junior Of- and freedom. The Lumberjacks captured the champion- ficer of the Year.’’ God bless Jonn, his family and friends, and ship in a thrilling 45-39 victory over the de- After a tour in the Manpower division on the his comrades in arms. And God bless Amer- fending state champion, punctuating a perfect Staff of the Commander, Submarine Force, ica. 15 and 0 season. The game was highlighted US Atlantic Fleet, he attended the Submarine

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00012 Fmt 0666 Sfmt 9920 E:\CR\FM\A19DE8.038 pfrm07 PsN: E20PT1 December 20, 2001 CONGRESSIONAL RECORD — Extensions of Remarks E2351 Office Advanced Course and was assigned as nity. He has been an active member of numer- assistance are given new clothing, which is the Chief Engineer on USS Atlanta SSN 712, ous organizations including the Rotary Club of paid for by the League and Target. It is a day a Los Angeles class submarine stationed in Eureka, the Boy Scouts of America, Christ of shopping and fun for the children. They are Norfolk, Virginia. Episcopal Church, KEET Public Television and allowed to choose the clothing so that when Following a tour as the submarine special the Salvation Army. His vision, enthusiasm, they put on these new clothes they feel they operations officer at the United States Atlantic and commitment are admired throughout were a part of the selection and really own the Command, CDR Ebbs was assigned as Exec- Humboldt County. clothes. This obviously helps to foster self-es- utive Officer of USS West Virginia SSGN 736, Mr. Speaker, it is appropriate at this time teem, which is needed with some of these a Trident class Fleet Ballistic Missile sub- that we recognize Theodore W. Loring, M.D. children. With a Fall and Spring Child Service marine stationed in Kings Bay, Georgia. for his leadership and commitment to the well Center, the League was able to clothe 915 In the spring of 1999, CDR Ebbs was as- being of the citizens and community of Hum- students last year. For those not able to at- signed to the Office of the Navy’s Director of boldt County, California. tend, the League offered clothing to an addi- Budget as a Congressional Liaison. During his f tional 199 students. time as a Congressional Liaison, CDR Ebbs Volunteer opportunities within the League provided invaluable support to me, the Appro- PERSONAL EXPLANATION include: After School Assistance Program priations Committee, and the various Members (ASAP), Domestic Violence, Kids on the Block and personal staff of the Subcommittee on HON. XAVIER BECERRA (a puppet show used to teach children about Defense. He displayed a unique ability to ex- OF CALIFORNIA domestic violence, handicapped people, or di- plain complex military requirements in the con- IN THE HOUSE OF REPRESENTATIVES vorce), Teen Court, and Mentorship Program text of an appropriations framework, serving Wednesday, December 19, 2001 (where a mentor is paired with a student that this Committee well and reflecting great credit is not doing well in school). These different on the Department of the Navy. CDR Ebbs left Mr. BECERRA. Mr. Speaker, on Tuesday, volunteer placements change as the needs of the Office of the Navy’s Director of Budget December 18, 2001, due to business in my the community change. earlier this year for a new assignment. District, I was unable to cast my floor vote on Mr. Speaker, League members have a Mr. Speaker, I have the great honor to in- rollcall No. 499, on Motion to Suspend the strong history as State and community lead- form the Members of the Committee and the Rules and Pass H.R. 3379, the Raymond M. ers, and I commend the Junior Service Congress that on January 11, 2002, CDR Wil- Downey Post Office Building; and rollcall No. League of Panama City for their continuing liam Ebbs will take Command of the Fleet Bal- 500 on Motion to Suspend the Rules and legacy of service and achievement. I am de- listic Missile Submarine USS Louisiana sta- Pass H.R. 3054, the True American Heroes lighted to congratulate them on its 50th Anni- tioned in Kings Bay, Georgia. We thank him, Act. versary and I wish them many more years of his wife Patricia, and their boys Arthur and Had I been present, I would have voted successful service to their community. Parker, for their years of service and sacrifice. ‘‘aye’’ on rollcall votes 499 and 500. We wish William God’s speed and protection. f f f JUNIOR SERVICE LEAGUE OF SUPPORT FOR H.R. 3423 HONORING DR. THEODORE LORING, PANAMA CITY, FLORIDA M.D., OF HUMBOLDT COUNTY, HON. RONNIE SHOWS CALIFORNIA HON. ALLEN BOYD OF MISSISSIPPI OF FLORIDA IN THE HOUSE OF REPRESENTATIVES HON. MIKE THOMPSON IN THE HOUSE OF REPRESENTATIVES Wednesday, December 19, 2001 OF CALIFORNIA Wednesday, December 19, 2001 Mr. SHOWS. Mr. Speaker, I am proud to be IN THE HOUSE OF REPRESENTATIVES Mr. BOYD. Mr. Speaker, today I rise to rec- here, as a member of the House Veterans Af- Wednesday, December 19, 2001 ognize and commend the Junior Service fairs Committee to share my strong support for Mr. THOMPSON of California. Mr. Speaker, League of Panama City, Florida as that group H.R. 3423. I rise today to recognize Dr. Theodore W. celebrates its 50th anniversary of service to In the days that followed September 11th, Loring of Humboldt County, California, who is our community. The Junior Service League is the depth of our lost was expressed in the being honored with the Distinguished Citizen a remarkable organization, dedicated to train- thousands of testimonies of families and Award by the Redwood Empire Council of the ing women for leadership in serving their com- friends who lost loved ones in the World Trade Boy Scouts of America. munities. It is committed to promoting vol- Center, Pentagon and plane crash in Pennsyl- Dr. Loring served his country in the U.S. unteerism, developing the potential of women, vania. We struggled as a nation to com- Army from 1943 to 1948, attaining the rank of and improving the community through the ef- prehend what had happened and collectively Captain. In 1951, he began his obstetrics fective action and leadership of trained volun- rose to pay tribute to the lives that were practice in Eureka, California, and since that teers. The women of Panama City have cer- ended. time he has delivered over 5,000 babies in the tainly demonstrated during the past half cen- And as stories of these people’s lives turned community. He and his wife Ruth have raised tury that hard work and good spirits can make to stories of these people’s funerals, we four fine sons of their own and enjoy five a powerful difference in the community that we learned of an injustice that had been occurring grandchildren and three great-grandchildren. live in. for years. We learned of Captain Charles Bur- Dr. Loring has consistently gone beyond the The Junior Service League of Panama City lingame, the pilot of Flight 77, who served a call of duty to serve his profession. He is the was founded on October 12, 1951 and had full reserve career in the Navy. We learned founder and past President of the Humboldt twenty charter members. The founding mem- that if he had lived his full God Given life, one Del Norte Foundation for Medical Care. He bers’ goals were to foster interest in the social, not destroyed by terrorist action, he would has held a variety of offices with the California economic, educational, cultural, and civic con- have been eligible for burial at Arlington Na- Medical Society, including Secretary, Coun- ditions of the community; to promote the inter- tional Cemetery—with all the rights and re- cilor, Member of the House of Delegates, Pro- est of its members in volunteer service to the spect from the U.S. Government he had gram Planner and Moderator and Chairman of community; and to work in harmony with the served so proudly. And yet, because his life the OB–GYN section. He has served with dis- policies of the Association of Junior Leagues. ended, before he turned 60, he was denied tinction on the American Medical Association The group began making a strong impact this honor; an honor for which he surely and the Pacific Coast OB–GYN Society. Addi- then, and I am proud to report that their work earned up till the last moment of his life. tionally, Dr. Loring is Chairman and Director has not only continued but has intensified Today we change this. Emeritus of the Union Labor Hospital Associa- since that time. The 2000–2001 League year We respect the sanctity of Arlington Ceme- tion Board, and he has served on the Board marks the 50th anniversary of this outstanding tery’s grounds and the special honor it offers of Directors of Blue Shield of California and as organization with over 80 active members and those who served our nation with distinction. a Director and Secretary of the Norcal Mutual over 200 sustainer members still dedicated to We recognize the limited burial grounds of the Insurance Company. the goals established by its charter members. cemetery and so deliberated change to their The unparalleled work Dr. Loring accom- The largest yearly project for the League is rules with care. Having done this, we deter- plished in his professional career is matched called Child Service Center through which stu- mined that service to one’s nation, not age of by his dedication to service within the commu- dents that are recognized as needing financial one’s life, should be the ultimate criterion for

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00013 Fmt 0666 Sfmt 9920 E:\CR\FM\A19DE8.041 pfrm07 PsN: E20PT1 E2352 CONGRESSIONAL RECORD — Extensions of Remarks December 20, 2001 interment at Arlington. And so, in this bill we Caucus helped develop. And in particular, I the school fails to meet performance objec- move forward in expanding our ability to pro- would like to thank my colleague, Congress- tives, it will be required to implement improve- vide appropriate tribute and reverence to more man RUBE´N HINOJOSA, who has worked tire- ments including professional development and servicemen who have passed. We eliminate lessly on education issues in his capacity as curriculum changes. These accountability today the age requirement for retired reserv- Chair of the CHC Education Task Force. I do measures promise to ensure that schools ists who would otherwise be eligible for in not believe we would be where we are today maintain effective bilingual programs. ground burial, and we grant families of reserv- if it were not for his dedication to expanding The second issue area in H.R. 1 that the ists who died performing training duty the right academic opportunities. Hispanic Caucus worked very hard to achieve to have their loved ones buried at Arlington. First of all, bilingual education programs are results in was migrant education. Migrant stu- This Holiday season, as we give thanks for important to limited English proficiency (LEP) dents have unique educational needs because our families and the strength of our nation, we children because they build on native lan- of their families’ need to periodically relocate recognize more than ever that our veterans guage proficiency to make the transition to all- in order to maintain employment. are our heroes. They have shaped and sus- English academic instruction. Without this The Conference Report expands education tained our nation with courage, sacrifice and foundation, many children will not be prepared services for migrant students by increasing the faith. They have earned our respect and de- to perform to high academic standards. authorized funding level of migrant education serve our gratitude. Let us join together and H.R. 1 sets a ‘‘trigger’’ of $650 million at by $30 million, from $380 million to $410 mil- do something meaningful by passing this leg- which bilingual education would convert from lion for fiscal year 2002. While this funding islation. It is the right thing to do. its current competitive grant structure to a new level would fall short of meeting all existing f formula grant, consolidated along with immi- needs, it is a significant step toward reversing grant education. This new formula, accom- the 11 percent decline in dollars spent per mi- PERSONAL EXPLANATION panied by a significant increase in appropria- grant pupil over the past two years. tions, will extend bilingual education to millions This bill also helps migrant students by im- HON. LORETTA SANCHEZ of eligible students who currently do not re- proving the way their academic and health OF CALIFORNIA ceive bilingual education services. records are transferred from one school to an- IN THE HOUSE OF REPRESENTATIVES The Conference Report does not require pa- other. Although some States have developed rental consent before students are placed in and implemented their own student records Wednesday, December 19, 2001 bilingual education, even though opponents of systems, current failures and interruptions in Ms. SANCHEZ. Mr. Speaker, on December bilingual education fought hard for this and in- records transfer result in delays in school en- 13, 1 was in Washington D.C. conducting offi- cluded it in the original House version of this rollment and academic services for migrant cial government business. It was my intention bill. Instead, the conference compromise con- students, discrepancies in student placement, to vote on Rollcall No. 498, H. Res. 314, tinues to maintain the current ‘‘opt-out’’ sys- and repeat immunizations of migrant children. which would have suspended the rules and al- tem, favored by the Hispanic Caucus. Schools Under the Conference Committee agreement, lowed suspension bills on Wednesday Decem- will be required to notify parents if their chil- the Secretary of Education is directed to assist ber 19. However, the electronic voting ma- dren are placed in bilingual education and par- states in linking existing systems of interstate chine did not properly record my vote. I re- ents will be given the information they need to migrant student records transfer. This will help quest that the CONGRESSIONAL RECORD reflect immediately transfer their children to English- eliminate two serious problems faced by mi- that had my vote been properly recorded I only classes, if they want. This system will en- grant students: (1) multiple unnecessary vac- would have voted ‘‘nay’’ on Rollcall No. 498. sure that LEP students are not deprived of cinations, which create a serious health haz- f services that will help them succeed academi- ard, and (2) denial of high school graduation cally, while giving parents flexibility and because high school credit records are miss- CONFERENCE REPORT ON H.R. 1, choice. ing. NO CHILD LEFT BEHIND ACT OF It is estimated that 50,000 new bilingual Finally, the third issue area addressed by 2001 education teachers are needed to meet the the Conference Report is high school dropout demands of a growing limited English pro- prevention. Addressing the dropout problem SPEECH OF ficient student population. At our insistence, during this ESEA reauthorization has been of HON. SILVESTRE REYES H.R. 1 now includes a set-aside program for paramount importance to the CHC. Statistics OF TEXAS professional development to improve the quali- show the dropout rate for Hispanic students is IN THE HOUSE OF REPRESENTATIVES fications of existing teachers and to recruit and approximately 30 percent compared to only 10 train new teachers. The program will authorize percent for non-Hispanic white students. For Thursday, December 13, 2001 two funding sources: one through the federal LEP students, the dropout rate is approxi- Mr. REYES. Mr. Speaker, as Chair of the government and the other through the states. mately 50 percent. At this rate, the economic Congressional Hispanic Caucus (CHC), I am In an additional boost to improving teacher and social potential of an entire generation of proud to support the Conference Report on quality, the Conference Report retains a na- Americans is at risk. H.R. 1, which reauthorizes the Elementary and tional clearinghouse for information and data Students cite a variety of reasons for drop- Secondary Education Act (ESEA). I am on bilingual education. The compilation and ping out, such as the lack of qualified teach- pleased that the conferees included most of distribution of this data provides important in- ers, lowered expectations of minority students’ the CHC’s priorities in the final bill, which will formation to educators on how to improve the academic potential, classes that fail to chal- now go a long way to reduce the disparities in quality of bilingual education. lenge them intellectually and the threat of educational achievement between Hispanic Opponents of bilingual education favored ‘‘tracking.’’ Currently, there are a variety of and non-Hispanic children. placing a three year limit on how long students programs which offer only piecemeal and in- The Census Bureau projects that by the can be enrolled in bilingual education regard- adequate solutions to the problem. The Con- year 2030, Hispanic children will represent 25 less of what level of English proficiency they ference Report takes a major step towards ad- percent of the total student population, and reach. The CHC opposed this, recognizing dressing the Hispanic dropout crisis by launch- even the most recent Census figures show that students entering the educational system ing an innovative dropout prevention program that Hispanics are now on pace to become the at different stages acquire language pro- that will comprehensively support proven nation’s largest minority sooner than expected. ficiency at different speeds. The compromise measures to reduce high school dropout rates Given these statistics, and the likelihood that bill gives students the flexibility to remain en- in schools predominantly serving low-income many of these students will come from low-in- rolled in bilingual education as long as is ap- students. I would like to express my thanks come households, the reauthorization of ESEA propriate. Senator JEFF BINGAMAN, who introduced the has been a significant priority for the Hispanic As part of the compromise, the bill requires program in the Senate, and all the conferees, Community. With appropriate funding, many of students to be tested for English reading pro- for including this dropout prevention program the programs in H.R. 1 that we helped shape ficiency after their third year in bilingual edu- in the final conference report. will improve the educational achievement of cation. However, school districts can obtain a In conclusion Mr. Speaker, I believe we are low-income and limited English proficient chil- waiver on a case-by-case basis to delay the taking a great step for our children and our dren. test for two years. The results of the test will nation’s future by passing this education re- I would like to share with my colleagues have no direct highstakes effects on individual form bill. As President John F. Kennedy said, some of the important provisions affecting His- students, but instead will be used to measure ‘‘Our progress as a nation can be no swifter panic students in H.R. 1 that the Hispanic a school’s progress and hold it accountable. If than our progress in education.’’ While we

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00014 Fmt 0666 Sfmt 9920 E:\CR\FM\A19DE8.045 pfrm07 PsN: E20PT1 December 20, 2001 CONGRESSIONAL RECORD — Extensions of Remarks E2353 have more work to do to improve education, collection, and in general, these new rules article XIV of that Treaty, and recalling the let us now appropriate sufficient funds to make have worked well to protect consumers. But Final Declaration adopted by the Con- the promise of H.R. 1 a reality, and be proud there is one small provision in the Fair Debt ference, held in Vienna, from 6 to 8 October 1999, we the ratifiers, together with the of what we have accomplished for our chil- Collection Practices Act that inadvertently has States Signatories, met in New York from 11 dren’s education in this session of Congress. made it more difficult—if not impossible—for to 13 November 2001 to promote the entry f an attorney to act as a debt collector and file into force of the Treaty at the earliest pos- documents with a court of law. sible date. We welcomed the presence of rep- IN HONOR OF THE STUDENTS OF Under current law, attorneys face a ‘‘Catch- resentatives of non-signatory States, inter- CANYON CREST ELEMENTARY 22’’ when they file a lawsuit against a debtor, national organizations and non-govern- SCHOOL and here’s why. mental organizations. 2. We reaffirmed our strong determination The Fair Debt Collection Practices Act re- to enhance international peace and security HON. CHRIS CANNON quires the inclusion of a specific warning no- throughout the world and stressed the im- OF UTAH tice in every document related to the debtor, portance of a universal and internationally IN THE HOUSE OF REPRESENTATIVES including those filed with a court. This warning and effectively verifiable comprehensive nu- Wednesday, December 19, 2001 notice makes good sense; it provides the clear-test-ban treaty as a major instrument debtor with information about his or her rights in the field of nuclear disarmament and non- Mr. CANNON. Mr. Speaker, many of us and responsibilities. proliferation in all its aspects. We reiterated have been dramatically affected by the tragic that the cessation of all nuclear-weapon test But the inclusion of the information required events of September 11th. As we have all explosions and all other nuclear explosions, by the Act often renders the document non- learned to cope and express our feelings re- by constraining the development and quali- compliant with the rules of the court. As a re- garding this tragedy, there have been some tative improvement of nuclear weapons and sult, attorneys are caught between a rock and shining stars that have risen beyond them- ending the development of advanced new hard place. They can include the warning on types of nuclear weapons, constitutes an ef- selves in an effort to help others. One such court documents and risk being in violation of fective measure of nuclear disarmament and group of people is the fifth and sixth grade the rules of the court, or they can exclude the non-proliferation in all its aspects and thus students of Canyon Crest Elementary School warning and be in violation of the Fair Debt a meaningful step in the realization of a sys- in Provo, Utah. tematic process to achieve nuclear disar- These wonderful students felt overcome by Collection Practices Act. mament. We therefore renewed our commit- the events witnessed that day. As the heroes Even the agency responsible for enforce- ment to work for universal ratificaiotn of of New York’s police and fire departments ment of the Fair Debt Collection Practices Act, the Treaty, and its early entry into force as bravely sacrificed many of their own to save the Federal Trade Commission, has repeat- provided for in article XIV. 3. We reviewed the overall progress made the lives of those trapped in the towers and edly acknowledged this dilemma. But the FTC cannot fix the problem administratively. The since the opening for signature of the Treaty while many others worked at the Pentagon, and, in particular, the progress made after these children all wished they could help but agency has recommended a narrowly tailored technical amendment to remedy the conflict the Conference held in Vienna from 6 to 8 Oc- felt only helplessness as they watched over 3, tober 1999. We noted with appreciation the 100 miles away. As their determination grew between Federal law and the rules of the overwhelming support for the Treaty that to assist in the recovery effort, these children court. It is this technical amendment that I has been expressed: the United Nations Gen- felt that the best way for them to assist was offer the House today. eral Assembly and other multilateral organs Under my bill, attorneys no longer will be have called for signatures and ratifications to express their appreciation for the sacrifices forced to choose between violating the rules of of the Treaty as soon as possible and have of the heroes and their desire to comfort the the court or violating the Fair Debt Collection urged all States to remain seized of the issue many who lost loved ones through writing. at the highest political level. We highlighted Their writings have been compiled in a book Practices Act. They still will be required to in- clude warning notices on all correspondence the importance of the Treaty and its entry titled From the Mountains . . . These touching into force for the practical steps for system- and heartfelt accounts relate many of the feel- with debtors, but they will be allowed to omit atic and progressive efforts towards nuclear ings that all of us experienced during the at- the warning notices only on documents pre- disarmament and non-proliferation, which tacks as well as during the weeks following. sented to the court. This simple and straight- were identified in 2000 at international fo- Mr. Speaker, today I ask that you and our forward solution maintains the spirit and the rums dealing with nuclear disarmament and colleagues join me in honoring the students of intent of the Fair Debt Collection Practices Act non-proliferation. We believe that the ces- while allowing attorneys to remain in compli- sation of all nuclear-weapon test explosions Canyon Crest Elementary for their own heroic or any other nuclear explosions will con- efforts to help us all to recover and rebuild in ance with the law and their professional stand- ards. tribute to the accomplishment of those ef- this great nation by showing us true patriotism forts. and the meaning of freedom. I urge my colleagues to support this legisla- 4. In accordance with the provisions of ar- tion. f ticle XIV of the Treaty, we examined the ex- f tent to which the requirement set out in FAIR DEBT COLLECTION PRAC- paragraph 1 had been met and decided by TICES TECHNICAL AMENDMENT FINAL DECLARATION OF THE CON- consensus what measures consistent with ACT OF 2001 FERENCE ON FACILITATING THE international law may be undertaken to ac- ENTRY INTO FORCE OF THE celerate the ratification process in order to COMPREHENSIVE NUCLEAR- facilitate the early entry into force of the HON. JUDY BIGGERT TEST-BAN TREATY Treaty. OF ILLINOIS 5. Since the Treaty was adopted by the IN THE HOUSE OF REPRESENTATIVES United Nations General Assembly and HON. EDWARD J. MARKEY opened for signature five years ago, progress Wednesday, December 19, 2001 OF MASSACHUSETTS has been made in the ratification process. As Mrs. BIGGERT. Mr. Speaker, I rise to intro- IN THE HOUSE OF REPRESENTATIVES of today, 162 States have signed and 87 States duce a common-sense technical amendment have deposited their instruments of ratifica- Wednesday, December 19, 2001 to the Fair Debt Collection Practices Act. I am tion, an increase of over 70 per cent com- pleased that this bipartisan legislation is being Mr. MARKEY. Mr. Speaker, I would like to pared with the number of ratifications at the call to my colleagues’ attention the Final Dec- time of the Conference held in 1999. Of the 44 cosponsored by my colleagues, Mr. SANDLIN States listed in Annex 2 to the Treaty whose of Texas, Mr. MOORE of Kansas, and CANTOR laration of the Conference on Facilitating the ratification is required for the entry into of Virginia. Entry into Force of the Comprehensive Nu- force of the Treaty, 41 have signed, and of For more than two decades, The Fair Debt clear-Test-Ban Treaty (CTBT). The document these, 31 have also ratified the Treaty. A list Collection Practices Act of 1978 has success- follows. of those States is provided in the appendix. Progress in ratification has been sustained. fully regulated and promoted ethical practices ANNEX—CONFERENCE ON FACILITATING THE We welcomed this as evidence of the strong on the part of debt collectors throughout the ENTRY INTO FORCE OF THE COMPREHENSIVE determination of States not to carry out any United States. The Act prohibits abusive or NUCLEAR-TEST-BAN TREATY (NEW YORK, harassing methods of debt collection, and it 2001) nuclear-weapon test explosion or any other nuclear explosion, and to prohibit and pre- requires that debt collectors treat consumers FINAL DECLARATION vent any such nuclear explosion at any place fairly. 1. Fully conscious of the responsibilities under their jurisdiction or control. In 1986, the law was amended to include which we assumed by signing the comprehen- 6. Despite the progress made and our standards for attorneys who engage in debt sive Nuclear-Test-Ban-Treaty, pursuant to strong support for the Treaty, we noted with

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00015 Fmt 0666 Sfmt 0634 E:\CR\FM\A19DE8.049 pfrm07 PsN: E20PT1 E2354 CONGRESSIONAL RECORD — Extensions of Remarks December 20, 2001 concern that it has not entered into force two to accelerate their ratification processes CASPIAN PIPELINE OPENS five years after its opening for signature. We with a view to early successful conclusion; therefore stressed our determination to (f) In pursuit of the early entry into force strengthen efforts aimed at promoting its of the Treaty, undertake ourselves to use all HON. JOE BARTON entry into force at the earliest possible date avenues open to us in conformity with inter- OF TEXAS in accordance with the provisions of the national law, to encourage further signature IN THE HOUSE OF REPRESENTATIVES Treaty. and ratification of the Treaty; and urge all 7. After the opening for signature of the States to sustain the momentum generated Wednesday, December 19, 2001 CTBT, nuclear explosions were carried out. by this Conference by continuing to remain Mr. BARTON. Mr. Speaker, I commend to The countries concerned subsequently de- seized of the issue at the highest political my colleagues the following article: clared that they would not conduct further level; nuclear explosions and indicated their will- (g) Agree that ratifying States will select [From the Washington Times, Dec. 3, 2001] ingness not to delay the entry into force of one of their number to promote cooperation CASPIAN PIPELINE OPENS the Treaty. to facilitate the early entry into force of the (By Christopher Pala) 8. In the light of the CTBT and bearing in Treaty, through informal consultations with ALMATY, KAZAKHSTAN.—The first pipeline mind its purpose and objectives, we affirm all interested countries; and encourage bilat- built to bring Kazakhstan’s oil to world mar- that the conduct of nuclear-weapon test ex- eral, regional and multilateral initiatives kets was dedicated in Russia last week, four plosions or any other nuclear explosion con- aimed at promoting further signatures and months late and minus the presidents of the stitutes a serious threat to global efforts to- ratification; two countries through which it passed. wards nuclear disarmament and non-pro- (h) Urge all States to share legal and tech- Speeches delivered near the Russian port liferation. nical information and advice in order to fa- of Novorossiisk called the 940-mile steel tube 9. We call upon all States to maintain a cilitate the processes of signature, ratifica- a symbol of international cooperation, and moratorium on nuclear-weapon test explo- tion and implementation by the State con- that it is indeed: The Russian Federation sions or any other nuclear explosions and un- cerned, and upon their request. We encour- and American and Russian oil companies derline the importance of signature and rati- age the Preparatory Commission for the have provided most of the $2.6 billion cost, fication of the Treaty. Comprehensive Nuclear-Test-Ban Treaty Or- and Russia stands to earn $20 billion over the 10. We noted with satisfaction the report of ganization and the Secretary-General of the 40-year life of the pipeline. the Executive Secretary of the Preparatory United Nations to continue supporting ac- But the pipeline is also: Commission for the Comprehensive Nuclear- tively these efforts consistent with their re- The first step to Kazakhstan’s ambitious Test-Ban Treaty Organization (CTBTO) to spective mandates; plan to deliver 3 million barrels a day in 15 the Conference on progress made by the Pre- (i) Call upon the Preparatory Commission years to world markets and become one of paratory Commission and its Provisional for the Comprehensive Nuclear-Test-Ban the top three oil exporters in the world. Technical Secretariat since November 1996 in Treaty Organization to continue its inter- A mutibillion-dollar bet by Chevron Corp. fulfillment of the requirement to take all national cooperation activities to promote in 1993 that is now set to pay off handsomely. necessary measures to ensure the effective understanding of the Treaty, including by An example of the difficulty of doing busi- establishment of the future CTBTO. demonstrating the benefits of the applica- ness in Russia. 11. In this connection, we welcomed the tion of verification technologies for peaceful Proof that with perseverance, it can be momentum which has been developed by the purposes in accordance with the provisions done. Preparatory Commission and its Provisional of the Treaty, in order to further encourage The pipeline, built by the 11-member Cas- Technical Secretariat across the Major Pro- signature and ratification of the Treaty; pian Pipeline Consortium, known as CPC, grammes of the Commission, as identified by (j) Reiterate the appeal to all relevant sec- starts on the desert shores of the northeast the Executive Secretary in his report. We tors of civil society to raise awareness of and Caspian Sea at Tengiz, Kazakhstan, the also welcomed the progress in building the support for the objectives of the Treaty, as world’s sixth-largest oil field. global infrastructure for Treaty verification, well as its early entry into force as provided The longest 40-inch pipe in the world then including the International Monitoring Sys- for in article XIV of the Treaty. curls around the Caspian before striking tem, with a view to ensuring that the 13. We reaffirm our commitment to the west across the broad plains north of the verification regime shall be capable of meet- Treaty’s basic obligations and our under- Caucasus range and ends at a tanker ter- ing the verification requirements of the taking to refrain from acts which would de- minal 10 miles west of Novorossiisk. Treaty at entry into force. We further wel- feat the object and purpose of the Treaty When completed, at a final cost of $4 bil- comed the conclusion of a significant num- pending its entry into force. lion, it will be able to carry up to 1.3 million ber of related agreements and arrangements 14. We remain steadfast in our commit- barrels per day (bpd), more then double its with States and with international organiza- ment to pursue the efforts to ensure that the initial capacity. tions. Treaty’s verification regime shall be capable 12. Convinced of the importance of achiev- of meeting the verification requirements of PEAK A DECADE OFF ing universal adherence to the Treaty, wel- the Treaty at entry into force, in accordance Output at the Tengiz field, now 270,000 bpd, coming the ratifications of all the States with the provisions of article IV of the Trea- is not expected to rise to a peak of 700,000 that have done so since the 1999 Conference, ty. In this context, we will continue to pro- bpd until the end of the decade, said Tom and stressing in particular the steps required vide the support required to enable the Pre- Winterton, head of the Tengizchevroil con- to achieve its early entry into force, as pro- paratory Commission for the Comprehensive sortium exploiting the field. vided for in article XIV of the Treaty, we: Nuclear-Test-Ban Treaty Organization to Thus, the pipe has plenty of room for oil (a) Call upon all States that have not yet complete its tasks in the most efficient and from other fields—and there lies one of the signed the Treaty to sign and ratify it as cost-effective way. major disputes that have delayed the open- soon as possible and to refrain from acts 15. The Conference addressed the issue of ing. which would defeat its object and purpose in possible future conferences, expressed the de- When Chevron took over Tengiz from its the meanwhile; termination of its participants to continue post-Soviet managers, it created one consor- (b) Call upon all States that have signed working towards entry into force of the tium for the oil field and a second one to but not yet ratified the Treaty, in particular Treaty and took note of the provisions con- build a pipeline to the Black Sea. those whose ratification is needed for its tained in paragraph 3 of article XIV of the For the first few years, Tengizchevroil, in entry into force, to accelerate their ratifica- Treaty. which Chevron owns 50 percent, diligently tion processes with a view to early successful overcame such obstacles as the extreme f 1 conclusion; depth of the reservoir (2 ⁄2 miles below the (c) Recall the fact that two States out of PERSONAL EXPLANATION surface), its high content of poisonous sulfur three whose ratifications are needed for the dioxide and the high pressure at which the Treaty’s entry into force but which have not oil was flowing. Production steadily climbed yet signed it have expressed their willingness HON. CHARLES A. GONZALEZ from 25,000 bpd and the jinx that gave Tengiz not to delay the entry into force of the Trea- OF TEXAS the longest uncontrolled blowout in soviet ty, and call upon them to sign and ratify it IN THE HOUSE OF REPRESENTATIVES history was overcome. as soon as possible; But in those years, the pipeline consortium (d) Note the fact that one State out of Wednesday, December 19, 2001 got strictly nowhere in its efforts to per- three whose ratifications are needed for the Mr. GONZALEZ. Mr. Speaker, on rollcall suade Russia and its pipeline monopoly Treaty’s entry into force but which have not No. 483, 484, 486, 487, 488, 489, 490, 491, Transneft to allow an outlet through Russia yet signed it has not expressed its intention 492, 493, 494, 495, 496, 497, 498. to the Black Sea. towards the Treaty, and call upon this State Had I been present, I would have voted It was not until 1996 that two newly cre- to sign and ratify it as soon as possible so as ated Russian oil giants, Lukoil and Rosneft, to facilitate the entry into force of the Trea- 483—yes, 484—yes, 485—yes, 486—yes, bought into the consortium while the Rus- ty; 487—no, 488—yes, 489—no, 490—yes, sian government took a 24 percent share. (e) Note the ratification by three nuclear- 491—yes, 492—yes, 493—yes, 494—yes, Then things started moving. weapon States and call upon the remaining 495—yes, 496—yes, 497—yes, 498—yes. Construction took less than three years.

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00016 Fmt 0666 Sfmt 0634 E:\CR\FM\A19DE8.053 pfrm07 PsN: E20PT1 December 20, 2001 CONGRESSIONAL RECORD — Extensions of Remarks E2355 Transneft Director Semyon Vainshtock But if Russia, Kazakhstan and world con- for a statement of principles. We agreed that tried to fight a rear-guard battle, insisting sumers can join Chevron in rejoicing at the stimulus was needed but that it should be that what was bad for Transneft was bad for pipeline’s completion, Turkey has exhibited short-lived, to avoid converting a cyclical Russia, but the pipeline consortium, headed mostly concern. by Russian Sergei Gnatchenko and assisted The extra tankers carrying Tengiz oil, downswing into a structural deficit. We wanted by Chevron’s Fred Nelson, the consortium’s which eventually will number three a week, the budget to recover as the economy recov- deputy general director for projects, argued will further clog the Bosphorus Strait that ers. The stimulus bill reported by Ways and that Russia stood to gain from the added bisects Istanbul and increase the chances Means forsook these principles and proposed production in a non-zero-sum game. that the city of 12 million people some day more permanent tax cuts, with revenue losses That was just the beginning. will have to cope with a major oil spill or continuing long after the recession ends. ROCKY ROAD SO FAR even a fire. More than half of the surplus is gone, and ‘‘We had to go through five Russian local But turkey is committed to upholding the 1936 Montreux Agreement and, barring a ca- the plan to save the Social Security surpluses governments,’’ Mr. Nelson said recently. ‘‘It and buy back government bonds is in grave wasn’t always easy.’’ tastrophe, Caspian oil will be able to navi- Twice, customs disputes halted the flow of gate the strait to reach European markets doubt. But the administration seems to find no the oil at the Russia-Kazakhstan border. for the foreseeable future, analysts say. lesson in these results. On the same day Mr. This year, the biggest dispute among CPC f Daniels made his gloomy prediction, the White members turned ugly and public when it de- House renewed discussions on a stimulus railed the opening ceremony that had been UNDERPINNINGS OF ADMINISTRA- plan, and afterwards told the media that repeal scheduled for Aug. 6 with the Russian and TIONS’ BUDGET NO LONGER of the corporate alternative minimum tax had Kazakh presidents in attendance. HOLD Tengiz oil, until the pipeline was built, was to be part of any stimulus plan the President exported entirely through Russia and mostly signed. In the short run, this will not help the by rail. HON. JOHN M. SPRATT, JR. economy; in the long run, it will not help the Part of its highly prized light ‘‘sweet’’ OF SOUTH CAROLINA budget. In all events, it begs the question: crude (which sells for up to a dollar a barrel IN THE HOUSE OF REPRESENTATIVES How will we pay for the war on terrorism, for more than Brent, the benchmark crude oil) Wednesday, December 19, 2001 homeland defense, for reinsurance of terrorist was mixed along the way with less desirable damages, for victims’ compensation, and for Russian crudes to make ‘‘Urals Blend,’’ Mr. SPRATT. Mr. Speaker, President Bush that matter, for the baby boomers’ retirement? which trades at nearly a dollar below Brent. claims that his administration has ‘‘brought ‘‘The Russians got a free ride for years,’’ No one is blaming the administration for the said a diplomat familiar with the situation. sorely needed fiscal discipline to Washington.’’ recession, but it can be faulted for ignoring the But for the pipeline, Chevron insisted on The same day, his budget director warns us clouds and betting the budget on a blue-sky instituting what is called a quality bank—a not to expect another surplus until 2005, after forecast. We warned that its budget had no system penalizing those who would add low- the president’s first term is over. If this is fiscal margin for error if the projections it was based quality crude to the mostly Tengiz CPC discipline, it has an odd bottom line. Blend. upon failed to pan out. We warned that the tax President Bush took office with an advan- cuts left little room for other priorities, like Quality banks are used in most places in tage no president in recent times has enjoyed: the world where low- and high-quality crude Medicare drug coverage or the solvency of oils are blended in pipelines, but the Russian a budget in surplus. Ten days after his inau- Social Security. The administration acted as if partners relented only three days before the gural, the Congressional Budget Office pro- we could have it all. Now that it’s clear we planned inauguration date, which was to co- jected a surplus of $313 billion in fiscal 2002, can’t, it seems as unwilling as ever to recast incide with the loading of the first tanker. and over ten years, a cumulative surplus of its budget. This is not fiscal discipline; this fis- The ceremony already had been canceled. $5.6 trillion. More than half of that has van- cal denial. Then, the port authority of Novorossiisk ished. The Director of the Office of Manage- If the administration wants to put the econ- extended its jurisdiction to the deserted ment and Budget, Mitchell Daniels, blames the piece of coast where holding tanks are buried omy and the budget back on path, it has to economy, extra spending, the fight against ter- near the end of the pipeline. There is no port: heed the lessons of the last ten months and rorism—everything but tax cuts. floating hoses are used to fill tankers acknowledge that the underpinnings of its Last month, economists on the House and moored offshore. budget no longer hold. The move allowed the port authorities to Senate Budget Committees updated their esti- demand a hefty port tax. Negotiations mates of the economy and budget. Their anal- caused further delays. Eventually, said oil ysis is as close as you can get to a consensus f analyst Ivan Mazalov at Troika Dialog in on where we stand now. They show that over MARSHALL UNIVERSITY MARTIN Moscow, ‘‘They were bargained down quite a ten years the tax cut takes a toll of $1.7 trillion bit.’’ LUTHER KING DAY OF SERVICE Other delays pushed back the date of the on the budget and accounts for 55 percent of GRANT loading of the first tanker to Oct 13. the depletion in the surplus. Spending related By the time all the difficulties were ironed to the war on terrorism, initiated after Sep- out, five fully loaded tankers had weighed tember 11, takes another 11 percent. Other HON. NICK J. RAHALL II anchor and sailed over the Black Sea to the spending increases take 11 percent, and of OF WEST VIRGINIA Bosphorus Strait, across the Sea of that, the President’s request for defense con- IN THE HOUSE OF REPRESENTATIVES Marmara, through the Dardanelles to the stitutes two-thirds. The remaining 23 percent Mediterranean Sea, and on to refineries in Wednesday, December 19, 2001 Europe. is due to the economy. A sixth one was loading when the cere- The economy is a major factor over the next Mr. RAHALL. Mr. Speaker, the Rev. Martin mony took place. two years. But as the economy recover, its Luther King Jr., once declared. ‘‘A nation or CHEVRON GAMBLED, WON drain on the budget tapers off. The President’s civilization that continues to produce soft- While Russia and the United States ended tax cuts get bigger. minded men purchases its own spiritual death up represented by deputy ministers, Chev- Budget Committee estimates show a re- on the installment plan.’’ Dr. King devoted his ron-Texaco sent Chairman David O’Reilly maining surplus over ten years of $2.6 trillion, life to improving the minds—and the hearts and the incoming and outgoing vice chair- but virtually all comes from the Social Security and souls—of all Americans. That work con- men of the world’s fourth-largest oil com- Trust Fund, which everyone has sworn not to tinues today at Marshall University. pany. touch; and most of that is concentrated in fu- For the fourth time in five years, the Cor- That was not surprising: Both the pipeline poration of National Service has awarded Mar- and the giant oil field it serves are Chevron’s ture years where the outlook is very uncertain. babies, multibillion-dollar gambles that fi- When the President submits next year’s budg- shall the Martin Luther King Day of Service nally are paying off. As the foreign biggest et in February, an updated forecast of the Grant. It testifies to the energy and efficacy of investment in the former Soviet Union, oil economy will come with it, and the $2.6 trillion their efforts. Their work endows children and field and pipeline are testimony that with surplus will surely shrink again. Mr. Daniels no adults of all creeds and races with a sense of perseverance, Westerners and Russians can doubt had that forecast in hand when he social justice and a commitment of civil rights. work together. warned of the vanishing surplus. Their January celebration of Dr. King’s life ‘‘CPC is a bellwether project for successful international cooperation,’’ Mr. O’Reilly re- The Budget Committee estimates were put and legacy epitomizes the purpose of this na- portedly said at the ceremony. ‘‘It dem- together as part of a bipartisan search for tional holiday embodies his belief in public onstrates the confidence the international common ground. Leaders on Budget, Finance, service. But just as Dr. King’s teaching was business community has to invest in Russia and Ways and Means met to settle on policies not bounded by the walls of his church, Mar- and Kazakhstan.’’ to stimulate the economy. We settled instead shall’s work in his spirit is not restricted to only

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00017 Fmt 0666 Sfmt 9920 E:\CR\FM\A19DE8.059 pfrm07 PsN: E20PT1 E2356 CONGRESSIONAL RECORD — Extensions of Remarks December 20, 2001 one special day. In the upcoming year, for ex- Martin is retiring from his current position of McNeil passed away on December 11, 2001. ample, Marshall will sponsor a Youth Leader- Assistant Air Traffic Manager at the FAA Ter- He was born September 10, 1919, the second ship and Development Program, an Invest- minal Radar Approach Control (TRACON) fa- of nine children to the late John and Mary ment in Youth Leadership Forum, and a Men- cility located at Sky Harbor Airport, where he McNeil in Pritchard, Alabama. He completed tor Literacy Program, all supported by the has directed a staff of approximately 80 per- his early education at the St. James Catholic CNS grant. sonnel, and maintained responsibility for the School. His formal education came from the Marshall’s is a program that should be hon- radar operations, procedures, automation, and ‘‘Knee College’’, where he graduated from ored by all who value Dr. King’s message and administrative functions of the facility for the ‘‘the old man to the new man’’. In 1944, he by any who strive to transmit it to future gen- past 3 years. met and began a courtship with Dora James. erations. I applaud his great achievements and hard On February 18, 1945 they were married and f work during his noteworthy career. FAA em- had seven children. ployees have long guarded the safety and se- Bishop McNeil was saved and received the SALUTE TO MARTIN HARDY OF curity of our airways, and Martin Hardy has gift of the Holy Ghost at the Old Holiness GLENDALE, ARIZONA had an exemplary career in serving his coun- Church in Pritchard, Alabama. He later moved try in this way. Congratulations on your retire- to New york and God found favor with him HON. BARBARA LEE ment and best wishes as you enter a new and called him to the ministry of the Apostolic OF CALIFORNIA chapter in your life. Faith. He became Assistant Pastor of the Old IN THE HOUSE OF REPRESENTATIVES f Truth Church of the Lord Jesus Christ, in Wednesday, December 19, 2001 Brooklyn, NY, where the late Elder D. Free- IN RECOGNITION OF ‘‘CAMP man was Pastor. Ms. LEE. Mr. Speaker, I rise today to salute UNITY’’ DISTRICT OF COLUMBIA In 1963, Bishop McNeil established his own Martin Hardy of Glendale, Arizona, who began VOLUNTEERS AT PENTAGON church, The House of the Lord and Savior his career with the FAA in 1971, as an Air CRASH SITE Jesus Christ of the Apostolic Faith. He later Traffic Controller at Sky Harbor Airport in changed the name of that church to Holy Phoenix, Arizona. HON. ELEANOR HOLMES NORTON Cross Remnant Church of Jesus of the Apos- With over 30 years of air traffic experience OF THE DISTRICT OF COLUMBIA tolic Faith. in the Phoenix and Los Angeles areas, Martin IN THE HOUSE OF REPRESENTATIVES For 54 years, Bishop W.B. McNeil has been has served in a variety of capacities, including and continues to be a source of wisdom and Wednesday, December 19, 2001 Air Traffic Controller (Sky Harbor & Burbank inspiration. Through his teaching and preach- Airports); Operational Supervisor (Burbank Ms. NORTON. Mr. Speaker, I would like to ing about God, Bishop McNeil inspired Pastor TRACON/ Tower & Phoenix Approach Control call attention to the efforts of ‘‘Camp Unity,’’ Clarence Keaton, who loved him like a father; Facility); Assistant Training Manager (Phoenix the group of business people and other resi- the Bishop became the grandfather of the Approach Control Facility); Assistant Air Traffic dents from the District of Columbia, who pro- True Worship Church Worldwide Ministries. Manager (Phoenix TRACON, Phoenix Tower, vided on-site support for relief and rescue Left to cherish his memory are his loving Phoenix TRACON and Tower); Air Traffic workers at the Pentagon crash site following wife, Mother Dora McNeil, and his seven chil- Manager (Tucson TRACON & Phoenix the terrorist attacks on September 11, 2001. dren, Catherine McNeil, Frances McNeil, Willie Tower); and Staff Specialist (National Head- Led by Advisory Board Commission 8D Chair, McNeil, Jr., Anthony McNeil, Michael McNeil, quarters—Washington, DC, and Regional Robin Denise Ijames, the volunteers of Camp Crystal McNeil, Stephen McNeil and his spir- Headquarters—Los Angeles, CA). He has re- Unity offered a variety of services, including itual son, Rev. Dr. Clarence Keaton. Pre- mained in a supervisory or management role meals, chiropractic therapy, and haircuts to ceding him in death were two brothers, the since 1984 and has been committed to pro- hundreds of workers who came from all over late Rufus McNeil, the late Melvin McNeil, and viding safe air traffic service to the nation. the country to assist in rescue and recovery two sisters, the late Mable Peterson and the Throughout the past 10 years, Martin has efforts at the Pentagon. late Catherine Richardson. He is also been involved in all stages of change and Through September 28th, Camp Unity main- mourned by one of his brothers, John McNeil, progress during the tremendous growth period tained a tent at what came to be known as and two sisters, Dorothy Pease and Mattie in the Phoenix region. He established excep- ‘‘Comfort City,’’ a collection of tents organized Reed as well as a host of grandchildren, tional working relationships with many airline to aid emergency medical staff, federal law nieces, nephews and his church family, and all representatives in the industry and has re- enforcement officials, police and fire officials, the members of the Holy Cross Remnant mained involved in the coordination of air traf- Red Cross volunteers, and countless others Church of Jesus of the Apostolic Faith. fic control procedures for the third runway and assigned to the crash site. Indeed, the District The late Bishop McNeil is one of the great- north runway construction projects at Sky Har- residents at Camp Unity extended great com- est servants that God has placed on this earth bor Airport. fort to these workers, many of whom were and will truly be missed. As such his family is Martin’s extensive knowledge of the Inter- separated from their families for many days. more than worthy of receiving this recognition governmental Agreement between the cities of The services of Camp Unity volunteers proved today and I urge my colleagues to join me in Phoenix and Tempe has allowed him to work so essential that they were officially deemed honoring the life of this truly remarkable man closely with the City of Phoenix and with the part of the D.C. Fire and Rescue team for the of God. community in mitigating the noise concerns two weeks they spent at the Pentagon. f around Sky Harbor Airport. He has rep- Mr. Speaker, the District of Columbia takes resented the FAA on the following state and particular pride in the work of the volunteers of KAZAKHSTAN’S DICTATOR local committees: City of Phoenix Sky Harbor Camp Unity. I ask the House also to join me UNDERMINES U.S. INTERESTS Part 150 Study; City of Peoria Airport Master in recognizing the charitable and patriotic re- Plan Advisory Committee; State of Arizona sponse of these District residents to the trag- HON. DANA ROHRABACHER Committee for the Preservation of Military Air- edy of September 11th. OF CALIFORNIA ports; Maricopa Association of Governments; f IN THE HOUSE OF REPRESENTATIVES Williams Gateway Airport Part 150 Study; and Phoenix Airspace user Workgroup (PAUWG). IN HONOR OF THE LATE BISHOP Wednesday, December 19, 2001 He has also served as a member of NBCFAE WILLIE B. McNEIL Mr. ROHRABACHER Mr. Speaker, I under- (National Black Coalition of Federal Aviation stand that the corrupt and repressive dictator Employees). HON. EDOLPHUS TOWNS of oil-rich Kazakhstan, Nursultan Nazarbayev, Martin attended San Fernando Valley State OF NEW YORK plans to visit Washington soon. He is looking College in San Fernando, CA. Throughout his IN THE HOUSE OF REPRESENTATIVES for a White House Good Housekeeping Seal career he has completed a multitude of of Approval and a consequent dampening of courses at the FAA Center for Management Wednesday, December 19, 2001 the Administration’s criticism of the Development, Palm Coast, Florida. He is a na- Mr. TOWNS. Mr. Speaker, I rise in honor of Nazarbayev regime’s deplorable human rights tive of Eunice, Louisiana, he and his wife, a very special man of God who has recently record. He thinks that his vague offers of as- Beverly, of 31 years, reside in Glendale, AZ. left us, Bishop Willie B. McNeil. sistance in the war against terrorism will tilt They are the proud parents of 3 children—Ni- After a rich and full life serving his commu- U.S. policy concerning such repression and cole, Nichelle and Martin II. nity, his church, and his God, Bishop Willie B. corruption as is found in Kazakhstan. That

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00018 Fmt 0666 Sfmt 9920 E:\CR\FM\A19DE8.062 pfrm07 PsN: E20PT1 December 20, 2001 CONGRESSIONAL RECORD — Extensions of Remarks E2357 would be a tragic mistake. We cannot permit TRAGEDY THAT HIT AMERICA main with Mark for years to come. To describe the war against terrorism to be manipulated the magnitude of the destruction, he conveyed into an affirmation of the status quo in coun- HON. JAMES A. TRAFICANT, JR. a scene of embers, ashes and heaps of office tries that are ruled by tyrants. In the long run, OF OHIO equipment strewn all over the place. While performing his duties that day, Mark con- that would pit the United States against those IN THE HOUSE OF REPRESENTATIVES struggling for honest and democratic govern- fessed to having been concerned for his own ment, which would lose whatever goodwill our Wednesday, December 19, 2001 and his colleagues’ safety particularly since country has in this world. Mr. TRAFICANT. Mr. Speaker, the events of they were informed that another hijacked Nazarbayev, as with his fellow dictators in September 11, 2001 in New York, Wash- plane may be heading for Washington, DC. other former Soviet republics of Central Asia, ington, and Pennsylvania have struck the His duty, however, dictated that he push and assumed the title of president through sham hearts and minds of Americans everywhere. I attend to the task at hand. This, he did without elections. He is so repressive and corrupt that am especially touched by the thoughts of the any hesitation. Although Mark’s fire company was on the his regime will eventually collapse of its own young people who are the future of this great site for only 1 day, they were placed on a ‘‘call weight. Islamic extremists—already active in nation. Shanleigh Hart is a 6th grade student in Miss Shiver’s class at Southeast School in back’’ status for several days afterward. If the area—as well as China, will be scrambling given the chance to do it over again, Mark to pick up the pieces when these gangster re- Salem, Ohio, and she has written a poem re- membering ‘‘The Tragedy That Hit America’’. says that he would have no hesitation in doing gimes fall apart. But we need not let that dis- his part once more. Attention and honors have mal scenario come to be. Now is the time to Shanleigh’s words are inspiring and should all make us proud to be Americans. been heaped upon him and his colleagues for press Nazarbayev, as well as other Central their performance but Mark feels that he only Asian strongmen, to hold early free and fair TRAGEDY THAT HIT AMERICA did what was expected and required of him. elections monitored by international observers. A threat to America He is grateful for having been given the If he needs to save face, Nazarbayev could Brave Country chance to actively take part of an effort that simply confirm the many rumors that he plans Count on us Depend on our army will forever be remembered in history. to step down and retire to one of the countries The tragedy of September 11 has touched where he stashed his ill-gotten financial gains. Extreme explosions Foreign countries deny every aspect of American society. Although lo- Of course the Nazarbayev regime, like other Greatly upset cated half a world away, the people of Guam human rights abusers, threaten more than Hope shines through have felt the effects and have made contribu- their own people. Moscow’s Centre TV on Interviewing all over tions towards our Nation’s efforts to recover February 17, 2001, accused the Nazarbayev Just not fair from the effects of these attacks. Individuals regime of illegally selling weapons, like ad- Killing such as Mark Anderson exemplify the best of vanced Russian-made S–300 air defense sys- Learning to work together our island and I am proud of his patriotism Maybe there will be a war tem and heavy tanks, to rogue regions. The Never will be forgotten and call to duty exhibited on September 11. United States has had many run-ins with the Obviously not expected Mr. Speaker, I commend Mark Anderson Nazarbayev regime over arms sales. Early last Prepare for war and his colleagues for their contributions. We year, for example, Kazakhstan sold forty MIG Quietly they did it realize the value of their service and commit- fighters to North Korea. And on June 4, 1997, Respectfully we work ments. By working together as these people the Washington Times reported that the U.S. Sad as can be have, we will be able to overcome any adver- had protested plans by Kazakhstan to sell ad- Terrifying sity that comes our way. Unfair to us vanced air defense missiles to Iran. This pat- f Very disrespectful tern of weapons trafficking must stop. Clearly, World War three A SPECIAL TRIBUTE TO MR. MI- this is a policy endorsed by Nazarbayev him- Extremely unbelievable CHAEL ANTHONY GRANDILLO ON self. Young and old HIS RETIREMENT AS PRESIDENT Finally, on September 14, 2001, the Swiss Zealous people OF THE TIFFIN CITY COUNCIL Federal Department of Justice made available In memory of all the victims and their fami- to the U.S. Department of Justice the findings lies, we are not letting this one go! We are HON. PAUL E. GILLMOR of a lengthy investigation of corruption involv- America. OF OHIO ing President Nursultan Nazarbayev of f IN THE HOUSE OF REPRESENTATIVES Kazakhstan. These issues raised by this re- Wednesday, December 19, 2001 port needs to be addressed. What we have CHAMORRO FIREFIGHTER ASSISTS here is a regime condemned by leading IN PENTAGON RESCUE OPER- Mr. GILLMOR. Mr. Speaker, it is with great human rights organizations, that has trafficked ATIONS pride that I rise today to recognize a great in arms with the dregs of the world, that has man who has dedicated much of his life to his been ambiguous in its support of the war on HON. ROBERT A. UNDERWOOD community. At the end of the year, Mr. Mi- terrorism, and is under investigation for cor- OF GUAM chael Anthony Grandillo will retire as President ruption by both Swiss and U.S law enforce- IN THE HOUSE OF REPRESENTATIVES of the Tiffin City Council. For the past 14 years, he has served as Councilman of the ment agencies. Wednesday, December 19, 2001 4th Ward of the City of Tiffin in the Fifth Con- Maybe our message to Mr. Nazarbayev is Mr. UNDERWOOD. Mr. Speaker, as the Na- gressional District of Ohio. that it is time for him to go. At the very least, tion is undergoing the recovery process from Mike has had a long and distinguished ca- he should not be allowed to leave Washington the terror and destruction brought about by the reer on the Tiffin City Council. He was ap- thinking that the U.S. will acquiesce to the sta- September 11 attack on America, I would like pointed to the seat in 1985 and was re-elected tus quo in exchange for platitudes about join- to take this opportunity to share the experi- to every four-year term since then. He served ing us in the war against terrorism. ences of a former resident of Guam who was as Chairman of the Parks and Recreation Kazakhstan is a country rich in natural re- called upon to assist in the rescue efforts at Committee when the city of Tiffin experienced sources. Its people should be enjoying pros- the Pentagon. tremendous growth. He was also Chairman of perity, peace and yes, freedom. Instead, the Born and raised on the island of Guam, the Law and Community Planning Committee iron grip of despotism is strangling the demo- Mark Anderson moved to the state of Virginia who has oversight responsibility for economic cratic alternative, and with it the hopes of eco- in 1999 to pursue his dream to become a fire- development in Tiffin. Under his leadership, nomic progress for the country as a whole. fighter. Having been employed by the Fairfax Tiffin recognized as having one of the top Let us be on the side of the people of coun- County Fire and Rescue Department for the three municipal economic development pro- tries like Kazakhstan. Let us use our influence past couple of years, Mark and his colleagues grams in the State of Ohio. with those in power in such repressed were called to respond to the Pentagon attack His dedicated service to this community socieities to show them a graceful way of that fateful day. Mark assisted in fighting fires, does not stop with the Tiffin City Council. He exiting power, rather than giving them, and locating survivors and recovering bodies— is currently Secretary and Director of the their repressed populations, the mistaken no- working 10 grueling hours without any breaks. Friedman Village, a non-profit corporation tion that we are the friends of such corrupt The image of charred rubble and scorched which developed and manages an 18 acre as- and tyrannical regimes. equipment all over the site of the crash will re- sisted and independent living facility. He is an

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00019 Fmt 0666 Sfmt 9920 E:\CR\FM\A19DE8.066 pfrm07 PsN: E20PT1 E2358 CONGRESSIONAL RECORD — Extensions of Remarks December 20, 2001 Executive Committee Member of the Inde- Thank you for your attention to this im- HOUSE OF REPRESENTATIVES, pendent College Advancement Associates of portant matter. COMMITTEE ON RESOURCES, Ohio and Director of the Ohio Northern Uni- Sincerely, Washington, DC, December 19, 2001. JAMES V. HANSEN, The Hon. W.J. ‘‘BILLY’’ TAUZIN, versity Alumni Board. In addition to his edu- Chairman—Committee on Resources. Chairman, Committee on Energy and Commerce, cation affiliations, he is a member of Elks Rayburn House Office Building, Wash- HOUSE OF REPRESENTATIVES, COM- International, the Knights of Columbus, ington, DC. MITTEE ON TRANSPORTATION AND Kiwanis Club of Tiffin, Ducks Unlimited of Sen- DEAR MR. CHAIRMAN: Thank you for your INFRASTRUCTURE, letter regarding H.R. 3299, the Homestake eca County, and the Media Institute, a Na- Washington, DC, December 18, 2001. Mine Conveyance Act of 2001. I agree that tional Italian-American Foundation. Hon. JAMES V. HANSEN, the Committee on Energy and Commerce and Mike continues today to serve his commu- Chairman, Committee on Resources, Longworth the Committee has a jurisdictional interest nity. In addition to his post as Vice President House Office Building, Washington, DC. in H.R. 3299, and that by not seeking a se- of Development of Tiffin University, he serves DEAR MR. CHAIRMAN: Thank you for the op- quential referral of the bill, you do not com- as Director of the Tiffin Area Chamber of portunity to review, on behalf of the Com- promise your jurisdictional claim. I will also Commerce, Director of the Seneca County In- mittee on Transportation and Infrastruc- support your request to be named as a con- dustrial Economic Development Corporation, ture, the amendment to H.R. 3299, the feree on this bill or the similar Senate bill and Chairman of the Revolving Loan Com- ‘‘Homestake Mine Conveyance Act of 2001,’’ should one become necessary. that the Committee on Resources plans to mittee for Tiffin that develops the City’s infra- As you know, yesterday the House of Rep- bring to the floor under suspension of the resentatives passed S. 1389, the Senate com- structure to encourage business growth. rules. Mr. Speaker, I ask my colleagues of the panion measure to H.R. 3299, with an amend- The Committee on Transportation and In- ment under suspension of the rules. S. 1389 107th Congress to join me in saluting Mike for frastructure has a valid claim to jurisdiction had been held at the desk and thus was not his years of service to the Tiffin community. I over section 104 of the amendment, as it re- referred to any House committee. However, want to wish my friend, his wife Nancy, and lates to environmental reviews by the Ad- the two bills are very similar. To clarify the their two children, Vincent and Gina, all the ministrator of the U.S. Environmental Pro- committee jurisdiction over this matter, I best in their future endeavors. tection Agency and response actions to cor- will place your letter and my response in the rect conditions that may present an immi- f CONGRESSIONAL RECORD under the extension nent and substantial endangerment to the of remark authority granted during consid- HOMESTAKE MINE CONVEYANCE public health or environment, and section eration of S. 1389. 106 of the amendment, as it relates to liabil- ACT OF 2001 Thank you again for your cooperation on ity under the Comprehensive Environmental this issue. I am sure that Congressman John Response, Compensation, and Liability Act SPEECH OF Thune, the author of H.R. 3299, is also very and the Federal Water Pollution Control grateful. HON. JAMES V. HANSEN Act. Sincerely, The Committee on Transportation and In- JAMES V. HANSEN, OF UTAH frastructure recognizes the importance of Chairman. IN THE HOUSE OF REPRESENTATIVES this legislation. In view of your desire to f Tuesday, December 18, 2001 move H.R. 3299 to the floor in an expeditious fashion, I do not intend to seek a sequential HONORING COACH JOHN THOMP- Mr. HANSON. Mr. Speaker, the Committees referral of H.R. 3299. However, this should in on Transportation and Infrastructure and En- no way be viewed as a waiver of jurisdiction. SON AND THE JOHN THOMPSON ergy and Commerce also have a jurisdictional I would appreciate your acknowledgement of FOUNDATION CLASSIC interest in S. 1389, and it is with the coopera- the jurisdiction of the Committee on Trans- tion of Chairman Don Young and Chairman portation and Infrastructure over sections HON. ELEANOR HOLMES NORTON 104 and 106 of the amendment and an ac- OF THE DISTRICT OF COLUMBIA Bill Tauzin that the bill was considered in such knowledgement of the Transportation and an expeditiously fashion by the House of Rep- Infrastructure Committee’s right to seek IN THE HOUSE OF REPRESENTATIVES resentatives. I have letters reflecting this juris- conferees in the event that this legislation is Wednesday, December 19, 2001 dictional understanding between our three considered in a House-Senate conference. Committees regarding H.R. 3299, a nearly I look forward to working with you on this Ms. NORTON. Mr. Speaker, I rise today to identical bill, and I ask that they be placed in bill. acknowledge the John Thompson Foundation Challenge Basketball Classic on Thursday, the RECORD at the appropriate place during Sincerely, debate on S. 1389. DON YOUNG, December 20, 2001, at the MCI Center in Chairman. Washington, DC In noting this significant occa- HOUSE OF REPRESENTATIVES, COMMITTEE ON RESOURCES, HOUSE OF REPRESENTATIVES, sion, I am particularly pleased to honor the Washington, DC, December 18, 2001. COMMITTEE ON ENERGY AND COMMERCE, outstanding contributions of Coach John The Hon. DON YOUNG, Washington, DC, December 18, 2001. Thompson, my colleague at Georgetown Uni- Chairman, Committee on Transportation and The Hon. JAMES V. HANSEN, versity, where I continue as a tenured pro- Infrastructure, Rayburn House Office Chairman, Committee on Resources, Longworth fessor of law, and I ask this House to honor Building, Washington, DC. House Office Building, Washington, DC. Mr. Thompson as well today. John Thompson DEAR CHAIRMAN YOUNG: I am writing to re- DEAR CHAIRMAN HANSEN: I am writing with is a lifelong resident of Washington, DC, a na- regard to H.R. 3299, the Homestake Mine quest that the Committee on Transportation tionally recognized and much honored coach and Infrastructure waive its right to seek a Conveyance Act of 2001. sequential referral of H.R. 3299, a bill intro- I recognize your desire to bring this bill be- and teacher, and the founder of the John duced by Mr. Thune regarding the disposi- fore the House in an expeditious manner. Ac- Thompson Foundation. I would especially like tion of the Homestake Gold Mine in South cordingly, I will not exercise the Commit- to express my deepest appreciation for his Dakota. tee’s right to a referral. By agreeing to waive leadership in providing scholarships to African While the Committee on Resources re- its consideration of the bill, however, the American youth living in the District of Colum- ceived sole jurisdiction of this bill upon its Energy and Commerce Committee does not bia to pursue higher education. introduction, the Committee on Transpor- waive its jurisdiction over H.R. 3299. In addi- Mr. Thompson has made many important tation and Infrastructure would receive a se- tion, the Energy and commerce Committee contributions to lives of inner city youth resid- quential referral upon passage because of reserves its authority to seek conferees on certain provisions in the text. the provisions of the bill that are within its ing in the nation’s capital. Since the beginning I acknowledge that your waiver of this jurisdiction during any House-Senate con- of his career, John Thompson has used ath- right to a sequential referral does not waive ference that may be convened on this or letics to teach and promote the importance of the rights of the Committee on Transpor- similar legislation. I ask for your commit- discipline and education to young people who tation and Infrastructure in the future on ment to support any request by the Energy underachieve. This country needs many more similar legislation. Further, I would recog- and Commerce Committee for conferees on sports heroes and teachers to follow John nize the right of the Committee on Transpor- H.R. 3299 or similar legislation. Thompson’s extraordinary example. tation and Infrastructure to seek conferees I request that you include this letter and If our youth are to survive in this globally on any provisions of H.R. 3299, or similar leg- your response in the CONGRESSIONAL RECORD islation, that are within its jurisdiction dur- during debate on the bill. Thank you for and technologically advanced society, it will ing any House-Senate conference that may your attention to these matters. require organizations and individuals to pro- be convened. Accordingly, I would support Sincerely, vide an array of educational opportunities that your request for the appointment of con- W.J. ‘‘BILLY’’ TAUZIN, prepare them for success. Coach Thompson ferees should such a conference be convened. Chairman. has proved his commitment to young people

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00020 Fmt 0666 Sfmt 9920 E:\CR\FM\A19DE8.069 pfrm07 PsN: E20PT1 December 20, 2001 CONGRESSIONAL RECORD — Extensions of Remarks E2359 for many years. We particularly applaud projects such as the annual Christmas drop Kashmiri Muslims and over 200,000 Christians Coach Thompson and the John Thompson remains alive. This is a testament to our ca- have been killed. Foundation for their emphasis on the edu- pacity to unite as a community and as a na- Mr. Speaker, the Council of Khalistan has cational success of inner city youth. The Bas- tion in the face of adversity. There is no better published an excellent press release on this ketball Classic serves as an inspiration for way to demonstrate our compassion and gen- attack. I would like to share it with my col- those interested in expanding educational op- erosity than worthwhile projects such as this. leagues by inserting it into the RECORD now. portunities for the District’s African American I take this occasion to commend all those who [From the Council of Khalistan, Dec. 14, youth. participated and contributed towards the suc- 2001] Mr. Speaker, I ask the House to join me in cess of this year’s Christmas drop. Let us COUNCIL OF KHALISTAN CONDEMNS ALL TER- saluting Coach John Thompson, the John keep this tradition going for many more years RORISM—TERRORIST ATTACK ON INDIAN PAR- Thompson Foundation, and all those associ- to come. LIAMENT ISAPRODUCT OF INDIAN REPRES- SION ated with the John Thompson Foundation, f whose dedicated and creative energy make a (By Guru Gobind Singh Ji, Tenth Master) significant impact on the progress and the TERRORIST ATTACK ON INDIAN India Must End Its Repression Instead of lives of African American youth. PARLIAMENT CONDEMNED—AT- Blaming Pakistan—Newspaper Says Indian Government Knew of Attack in Advance f TACK IS INEVITABLE CON- SEQUENCE OF REPRESSION IN WASHINGTON, DC—The Council of Khalistan 49TH ANNUAL ANDERSEN AIR INDIA today condemned the terrorist attack on the FORCE BASE CHRISTMAS DROP Indian Parliament, but called on the Indian IN MICRONESIA government to join the fight against ter- HON. EDOLPHUS TOWNS rorism worldwide and to end its own ter- HON. ROBERT A. UNDERWOOD OF NEW YORK rorism against minorities. IN THE HOUSE OF REPRESENTATIVES ‘‘We condemn terrorism in all forms, wher- OF GUAM ever it comes from,’’ said Dr. Gurmit Singh IN THE HOUSE OF REPRESENTATIVES Wednesday, December 19, 2001 Aulakh, President of the Council of Wednesday, December 19, 2001 Mr. TOWNS. Mr. Speaker, I join with my Khalistan, the government pro tempore of colleagues and all decent people of the world Khalistan, the Sikh homeland, which de- Mr. UNDERWOOD. Mr. Speaker, 49 years clared its independence from India on Octo- ago in 1952, over the tiny island of in condemning the terrorist attack on the In- ber 7, 1987. ‘‘We strongly condemn this ter- Kapingamarangi in Micronesia, the crew of an dian Parliament. I extend my sympathies to rorist action and we condemn the Indian Air Force WB–50 aircraft assigned to the 54th the victims and their families. Terrorism is government’s terrorism that gave rise to Weather Reconnaissance Squadron in Guam never acceptable. We are currently at war this act,’’ he said. ‘‘When you repress people quickly gathered a box of goodies they had on against terrorism, as we should be. long enough, they strike back. India’s re- However, India is a country that has prac- pression of minorities made this incident in- the plane upon seeing a number of islanders evitable.’’ waving at them. Thus began the five-decade- ticed terrorism against the peoples living within its borders. It has a pattern of terrorism. Re- The Deccan Chronicle reported today that old tradition. the Indian government knew of the attack in For years, the residents of Kapingamarangi, member that two government officials there advance and did nothing to stop it. This Nukuoro and other remote islands have been were quoted last year as saying that Pakistan shows government involvement in the inci- receiving a variety of gifts such as machetes, should be absorbed into India. It is clear that dent. yet the Indian government has blamed hoes, snorkels, coloring books, soccer balls India seeks hegemony over all the peoples Pakistan for the attacks. India will use this and toiletries—items they probably would not and nations of South Asia. incident as an excuse for more repression of have been able to obtain otherwise due to In May, Indian troops were overwhelmed by the minorities, such as the Sikhs of Khalistan, the Muslims of Kashmir, the their remote location in the Pacific. This year, villagers, both Sikhs and Muslims, while they were trying to set fire to a Sikh Gurdwara and Christians of Nagaland, and others. four C–130 Hercules aircraft from the 36th Air- ‘‘India must stop blaming Pakistan for ev- lift Squadron based out of Yokota Air Base in some Sikh houses in Kashmir. Independent in- erything that goes wrong in India and end its Japan dropped 60 boxes of holiday gift items vestigations by the International Human Rights own terrorism against the Sikhs, Christians, on the 54 islands and atolls in the Micronesia Organization and jointly by the Punjab Human Muslims, and other minorities,’’ said Dr. area. The operation lasted six days and en- Rights Organization and the Movement Aulakh. ‘‘It is time for India to release more tailed cargo planes descending upon sparsely Against State Repression have conclusively than 52,000 Sikh political prisoners and the populated islands and atolls. In addition to the shown that the Indian government carried out tens of thousands of other political prisoners and end its repression,’’ Dr. Aulakh said. The goodwill spread among these communities, the massacre of 35 Sikhs in Chithisinghpora in March 2000 while former President Clinton book ‘‘Soft Target,’’ written by two Cana- the aircrew involved also benefit from the op- dian journalists, proves that the Indian gov- portunity of having their navigation and flight was visiting India. Its police broke up a Chris- ernment blew up its own airliner in 1985 to skills tested as they search out unfamiliar drop tian religious festival with gunfire. According to generate more repression against Sikhs. In zones on remote and isolated island locations. the excellent book Soft Target, written by two November 1994, the newspaper Hitavada re- This year’s organizers had a bit of difficulty respected Toronto reporters, the Indian gov- ported that the government paid the late in raising the necessary funding for this project ernment blew up its own airliner in 1985, kill- governor of Punjab, Surendra Nath, $1.5 bil- due to Guam’s current economic situation. ing 329 innocent people. According to a report lion to generate terrorist activity in Punjab However, the community has somehow man- in the Hitavada newspaper, India paid the late and Kashmir. ‘‘I salute Pakistani President Musharraf aged to get together and, in the true spirit of Governor of Punjab, Surendra Nath, $1.5 bil- for risking his political life by supporting this season of sharing, allow for another suc- lion to create terrorism in Punjab, Khalistan America and the world in its fight against cessful year. For the past several months the and in Kashmir. terrorism. It is time for India to get on Christmas Drop committee has raised funds We must work to stop terrorism wherever it board,’’ Dr. Aulakh said. ‘‘I call on India to through several events. Three scuba diving occurs. India’s terrorism is no exception. We join the fight against terrorism and I call on boat trips, a 5k run/walk, a golf tournament should stop our aid to India until it stops its re- the Sikh leadership in Punjab to stop mak- along with T-shirt and commemorative coin pression of the Christians, Sikhs, Muslims, ing coalitions with the Indian government sales generated a substantial part of the funds and other minorities, and we should declare and work for freedom for the Sikhs and the our public support for self-determination for all other minority nations of South Asia,’’ he used for this year’s operation. Despite a re- said. ‘‘There is a very good reason that there cent drop in tourism arrivals on Guam, dona- the people of South Asia in the form of a free are 17 freedom movements within India’s tions steadily flowed from island residents and and fair plebiscite on the question of inde- current borders.’’ the local business communities. Also worth pendence. The Indian government has murdered over mentioning is the effort initiated by Jacob Jan- A report published this past May by the 250,000 Sikhs since 1984. According to a re- sen as part of his community service project in Movement Against State Repression showed port in May by the Movement Against State his effort to attain the rank of Eagle Scout. that the Indian government admitted that Repression, India admitted that 52,268 Sikh Through Jacob’s efforts, a canned food drive 52,268 Sikh political prisoners are rotting in In- political prisoners are rotting in Indian jails without charge or trial. Many have been in was held at Andersen Air Force Base’s middle dian jails without charge or trial. Many have illegal custody since 1984. Over 200,000 Chris- and elementary schools as well as at Guam been in illegal custody since 1984. The Indian tians have been killed since 1947 and over High School. government has murdered over 250,000 Sikhs 75,000 Kashmiri Muslims have been killed During these times of uncertainty and hard- since 1984, according to the Politics of Geno- since 1988. The Indian Supreme Court de- ship, it is very gratifying to see that worthwhile cide by Inderjit Singh Jaijee. Over 75,000 scribed the situation in Punjab as ‘‘worse

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00021 Fmt 0666 Sfmt 0634 E:\CR\FM\A19DE8.074 pfrm07 PsN: E20PT1 E2360 CONGRESSIONAL RECORD — Extensions of Remarks December 20, 2001 than a genocide.’’ In May, Indian troops were The GRAMMY Signature School Program is school. Mike went on to graduate from caught red-handed trying to set fire to a developed through the GRAMMY Foundation, Georgetown University and its law school. He Gurdwara (a Sikh temple) and some Sikh a non-profit arm of the Recording Academy also received a LLM degree from the Univer- houses in Kashmir. Two independent inves- tigations have proven that the Indian gov- that is dedicated to advancing music and arts- sity of Michigan Law School before joining the ernment carried out the March 2000 massacre based education across the country. Through U.S. Army. Mike was commissioned as a first of 35 Sikhs in Chithisinghpora. U.S. Con- educational, cultural and professional initia- lieutenant and served in the Judge Advocate gressman Dana Rohrabacher has said that tives, the Foundation aims to strengthen our General’s Corps in La Rochelle, France. for Sikhs, Kashmiri Muslims, and other mi- educational system. After serving in the Army, Mike embarked norities ‘‘India might as well be Nazi Ger- What makes Burlington City’s accomplish- upon his impressive career as assistant coun- many.’’ ments so special is the knowledge that it suc- sel to the United States Senate Subcommittee India has also repressed Christians. Two cessfully competed against 18,000 public high on Constitutional Rights chaired by Senator leaders of the ruling BJP said that everyone who lives in India must either be a Hindu or schools nationwide. In the end, Burlington Sam Ervin. He then moved on to the National be subservient to Hinduism. Priests have City’s program was chosen by an independent Labor Relations Board as a trial attorney in been murdered, nuns have been raped, screening committee comprised of university the Baltimore regional office, and was ap- churches have been burned, Christian schools music professors, and representatives from pointed a Federal administrative law judge at and prayer halls have been destroyed, and no professional music organizations to receive the NLRB in 1973. Mike worked at the NLRB one has been punished for these acts. Mili- the Signature School Award for their excep- until his retirement in 1994. He also taught tant Hindu fundamentalists allied with the tional job of cultivating their arts program. labor law on the adjunct faculty of the Univer- RSS, the pro-Fascist parent organization of Mr. Speaker, I commend the faculty and sity of Maryland University College from 1956 the ruling BJP, burned missionary Graham Staines and his two young sons to death. In students in the music department for their to 1971. 1997, police broke up a Christian religious commitment to furthering music education. I Mike prided himself on fighting for the little festival with gunfire. would like to thank the school and the local guy and his work at NLRB is proof of that ‘‘Nations that do not have political power school board for their hard work and dedica- dedication. As an administrative law judge, he vanish,’’ Dr. Aulakh said. ‘‘Sikhs are a sepa- tion to providing an outstanding music edu- won national acclaim from the nation’s edi- rate nation and ruled Punjab up to 1849 when cational program that superbly serves the stu- torial pages and from Congresswoman Bella the British annexed Punjab. The nations and dents of Burlington City. Abzug on the Floor of this House for his deci- people of South Asia must have self-deter- sion in the landmark Farrah slacks case in mination now.’’ f which he detailed the mistreatment of factory f PERSONAL EXPLANATION workers in a Texas textile shop. CONGRATULATING BURLINGTON Mike and his wife, Cecelia, moved to Prince CITY HIGH SCHOOL ON ITS HON. JOHN BOOZMAN George’s County in 1958. He quickly im- GRAMMY AWARD OF ARKANSAS mersed himself in civic activism and was IN THE HOUSE OF REPRESENTATIVES elected a delegate to the statewide Demo- cratic convention in 1962. He also began forty HON. CHRISTOPHER H. SMITH Wednesday, December 19, 2001 years of involvement in County public affairs OF NEW JERSEY Mr. BOOZMAN. Mr. Speaker, yesterday, by joining efforts to adopt a home rule charter IN THE HOUSE OF REPRESENTATIVES December 18, 2001, I was unavoidably de- for the County and reform zoning practices. Wednesday, December 19, 2001 layed on my return to Washington, DC be- In 1968, Mike was elected to the Charter Mr. SMITH of New Jersey. Mr. Speaker, I cause of a security breach at Charlotte Doug- Board, which was created by the voters to rise today to honor and congratulate the stu- las Airport, where I was scheduled to transfer draft a proposed home rule charter for Prince dents and faculty of the Burlington City High flights, and a security delay at Reagan Na- George’s County. Mike chaired the five mem- School Music Department in Burlington City, tional Airport. ber board and is widely regarded as the au- New Jersey for their recognition by the na- For this reason, I missed votes on the final thor of the County’s modern form of govern- tional GRAMMY Foundation as a GRAMMY passage of H.R. 3334, the ‘‘Richard J. ment. Signature School. Guadagno Headquarters and Visitors Center Mike’s efforts helped bring about a sweep- Burlington City is now one of 100 high Designation Act’’ and H.R. 3054, ‘‘A bill to ing reform of the County’s government. The schools from across the country to receive a award congressional gold medals on behalf of County Commissioner system was abolished certificate of recognition based on its high government workers who responded to the at- and replaced by an elected County Executive level of commitment to music education. The tacks on the World Trade Center and perished and council with home rule powers. Prince GRAMMY Signature School Program honors and on behalf of people aboard United Airlines George’s County had previously been run by high school music students, teachers, prin- Flight 93 who helped resist the hijackers and the Maryland General Assembly in Annapolis. cipals, and school districts that promote and caused the plane to crash.’’ Mike’s reform efforts did not stop with the preserve music education—both performing Had I been present, I would have voted in adoption of the new Charter. He led the way and studying music—as a key part of their the affirmative for both of these bills. in the election of a bipartisan slate in 1971 curriculum. f and was appointed as the first County Attor- The importance of music education in the ney under the new Charter. overall educational experience of students is WALTER H. MALONEY Mike helped guide the new County govern- becoming clearer every day. In fact, several ment during his time as Attorney General until studies have shown a quantifiable value of the HON. STENY H. HOYER he resigned to become a Federal administra- arts in improving overall academic perform- OF MARYLAND tive law judge. The incisive and hard-hitting ance. According to the College Entrance Ex- IN THE HOUSE OF REPRESENTATIVES nature of his legal opinions as Attorney Gen- amination Board, students of the arts continue eral earned him the nickname ‘‘Iron Mike.‘‘ Wednesday, December 19, 2001 to outperform their non-arts peers on the Mike’s demanding career at NLRB did not Scholastic Assessment Test (SAT). In 1995, Mr. HOYER. Mr. Speaker, I rise today to prevent him from being active in local affairs for example, SAT scores for students who pay tribute to the late Walter H. Maloney, or from working extensively on local bond and studied the arts for four or more years were known to his friends as Mike. Mike rep- zoning issues over the years. In 1994, fol- 59 points higher on the verbal, and 44 points resented the First District on the Prince lowing his retirement from the Federal Govern- higher on the math portion of the exam, than George’s County Council at the time of his ment, Mike ran a successful grassroots cam- students with no course work on experience in death and he was a leading figure in County paign for the Prince George’s County Council. the arts. politics for four decades. He was legendary for He was re-elected in 1998. Moreover, most teachers know that music his political independence, perseverance and As a member of the Council, Mike continued appreciation and performance can often pro- his remarkable commitment to public service. to assert his political independence and to use vide a critical mechanism to engage, and stim- Mike was born in Kansas City, Missouri in his sharp mind to challenge land use and ulate interest in, other school activities. Stu- 1930 and came to Washington, DC in 1937 spending policies, and fight for the best inter- dents who otherwise would have dropped out when his father was recruited to work in the ests of the community. At the time of his of school, and put their long term economic fu- Roosevelt Administration. Mike’s mother death, Mike was ineligible to run for the Coun- tures at risk, have been re-engaged through taught music at the Sidwell Friends School in cil again thanks to term limits that he helped music and the arts. Washington, DC where Mike also attended put in place.

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00022 Fmt 0666 Sfmt 9920 E:\CR\FM\A19DE8.077 pfrm07 PsN: E20PT1 December 20, 2001 CONGRESSIONAL RECORD — Extensions of Remarks E2361 Mike was a devout Catholic and had a deep TRIBUTE TO THE LIFE, LEGACY, TRIBUTE TO THE CARNEY-NADEAU interest in Catholic history. He authored a pro- AND MUSIC OF RUFUS THOMAS WOLVES, MICHIGAN HIGH file of 58 historic catholic churches east of the SCHOOL CLASS D GIRLS BASKET- Mississippi titled ‘‘Our Catholic Roots.‘‘ He BALL CHAMPIONS also received many accolades throughout his HON. HAROLD E. FORD, JR. long career in public service for his dedication OF TENNESSEE HON. BART STUPAK to his local community and the environment. OF MICHIGAN Mike is survived by his wife of 46 years, IN THE HOUSE OF REPRESENTATIVES IN THE HOUSE OF REPRESENTATIVES Cecelia Fitzpatrick, and six children, Timothy Wednesday, December 19, 2001 Wednesday, December 19, 2001 F. Maloney, Eileen Maloney Flynn, Kathy Mr. STUPAK. Mr. Speaker, I rise today to Maloney Gawne, Patrick J. Maloney, John M. Mr. FORD. Mr. Speaker, I rise today in re- pay tribute to the girls’ basketball team of Car- Maloney, and Ann Marie Maloney, and twelve membrance of one of music’s greatest icons, ney-Nadeau High School, a Class D school in grandchildren. One of his greatest prides was Rufus Thomas, who passed away in Memphis, the Upper Peninsula of Michigan in my con- his loving family and all of their many achieve- TN, on December 15, 2001, at the age of 84. gressional district. With only 86 students, Car- ments. Mike was known to boast about them As his family and friends mourn his passing, ney-Nadeau is one of the smallest schools in all and was happiest when surrounded by his it is appropriate that we pay tribute to him and its division, but the Carney-Nadeau Wolves many children and grandchildren. his legacy. proved once again on December 1 that it only takes a big heart, not a big school, to win a Mike Maloney will be sorely missed not only Rufus Thomas was known as one of Mem- state division championship. I say ‘‘once by those who knew him but also by the resi- phis’ most colorful, influential, and beloved en- dents of Prince George’s County whom cer- again,’’ Mr. Speaker, because the Wolves won tertainers during a career that spanned more tainly benefited from his dedication to his com- State titles under their same coach, Paul than seventy years. As a pioneering disc jock- munity and to the ‘‘little guy.’’ I ask my col- Polfus, in 1989 and 1990. leagues to join me in honoring this dedicated ey at WDIA, an accomplished recording artist, A team championship can be analyzed in public servant who leaves behind a loving and a prolific performer throughout his long numbers, and any sports fan will plenty of ex- family and many admirers who will miss him career, Mr. Thomas made invaluable contribu- citing statistics associated with this gusty greatly. tions to Memphis’ storied musical heritage. team, such as their season record of 26–1 and their coach’s 410–115 career record. In Rufus Thomas became widely known for the 54–32 championship game against f songs such as ‘‘Walking the Dog,’’ ‘‘Do the McBain Northern Michigan Christian, starter Funky Chicken,’’ ‘‘Can Your Monkey Do the COMMENDING THE WORK OF Tara Benson, a senior, led the Wolves with 16 Dog?,’’ ‘‘Push and Pull,’’ ‘‘Breakdown’’ and points and snagged six rebounds and six DEBORAH NOVAK AND JOHN ‘‘Do the Funky Penguin.’’ But Mr. Thomas’s WITEK FOR THEIR DOCUMEN- steals, while her sister Carly, a freshman, musical contributions went far beyond com- TARY ‘‘BLENKO RETRO: THREE went seven of eight in her shooting. Starter mercial success. A true musical pioneer, he DESIGNERS OF AMERICAN Brittany Pipkorn hit four 3-pointers. GLASS’’ opened the door for many young musicians Peel away those numbers, however, and and helped catapult African American music you will find enough stories of real people to into the limelight as a cornerstone of popular make a movie equal to any classic ‘‘underdog’’ HON. NICK J. RAHALL II culture and entertainment. Mr. Thomas helped story. You will learn that Coach Paul Polfus, found two historic recording studios, Stax who has worked at Carney-Nadeau for 26 OF WEST VIRGINIA Records and Sun Records, that helped launch years, was once a basketball player at this IN THE HOUSE OF REPRESENTATIVES the careers of many musical legends, includ- same school, coached by the current super- intendent Ron Solberg. Inducted into the U.P. ing B. B. King, Otis Redding, Isaac Hayes, Wednesday, December 19, 2001 Sports Hall of Fame in 1996, Paul celebrates and Elvis Presley. his third girls’ championship with his wife Col- Mr. RAHALL. Mr. Speaker, as our country In recognition of his great contributions, leen and their sons Jacob, Michael and Matt. began the long process of recovering from the Rufus Thomas was honored by the Rock and In our own version of ‘‘Rocky,’’ look behind Great Depression and World War II, people Roll Hall of Fame in 1998, one of many acco- the numbers to find 5-foot, 1-inch starter Tracy sought comfort and change in a variety of lades he received throughout his career. His Hernandez, who vowed after the team’s loss places and mediums. Consumers turned their songs have remained popular since their re- in the finals last year that the team would win attention to products that were both energetic lease and have been re-recorded by groups the title this year. Tracy kept her vow by re- and new, and Blenko Glass in Milton, West such as Aerosmith and the Rolling Stones. He porting to the gym every morning at 5:30 to lift Virginia was one of the American companies weights and work toward that goal. was featured as a performer at the 1996 able to adjust to this new consumerism with The story of this championship season is their award-winning pieces and unique de- Olympic Games in Atlanta. also revealed in the story of the Benson sis- signs. Yet, even with all of his successes, Rufus ters, daughters of Nancy (Janofski) Pugh, a I would like to congratulate Huntington, Thomas remained an integral part of the com- member of the first All-U.P. girls team picked West Virginia residents Deborah Novak and munity—always accessible and willing to per- in 1975, and Ed Benson, All-U.P. in 1971 and John Witek who have once again created an form for his many devoted fans. Until he be- 1972. Tara credits both parents for their help in shaping her game, but perhaps her greatest insightful and provocative documentary that came ill in November of this year, he never accomplishment is a personal one—Tara re- chronicles three of Blenko’s most famous and spoke of retiring and referred to himself as the turned to top-form play this year after sitting celebrated designers in the era of post-war ‘‘World’s Oldest Teenager.’’ He explained, ‘‘I out the 2000 season recovering from ACL sur- modernism. Titled ‘‘Blenko Retro: Three De- ain’t old. You don’t get old when you’re doing gery. signers of American Glass,’’ it is the second of what you love and enjoying every minute of The sacrifice and the hurdles met and over- its kind by the Emmy-Award winners to high- it.’’ come by each player are part of the story, as light the significance of Blenko as the industry Rufus Thomas made a life of doing what he well as the home community itself, Carney. leader in modernity in American glass. loved and for that he was loved by all who This is a community that has faced great eco- Often said to be reflective of events that knew him. A true symbol of undying youth and nomic adversity, Mr. Speaker, but, like the rest were occurring at that time, Blenko Glass was optimism, Mr. Thomas will be remembered for of the Upper Peninsula, hope and optimism able to offer a new attitude to Americans, the kind heart and boundless energy that he are characteristics of its people. And the bringing the sleek and bold creations into their displayed in all aspects of his life, and for the school proving that education and sports go homes that were parallel to the thirst for mo- mark he left on musical history. hand in hand, was honored this week in the dernity and change that swept the nation at Michigan Golden Apple Awards program as the end of the World War II. Novak and Witek Mr. Speaker, it is with profound reverence one of the state’s most improved schools in highlight the role of this American institution, that we honor Rufus Thomas. He will be performance on Michigan Educational Assess- emphasizing the important and permanent po- missed and remembered fondly by his family ment Program tests. sition that Blenko Glass and its designers hold and friends, an entire community, and musi- In light of the great challenges facing this in creative history. cians and music lovers everywhere. team, the championship run of the Carney-

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00023 Fmt 0666 Sfmt 9920 E:\CR\FM\A19DE8.080 pfrm07 PsN: E20PT1 E2362 CONGRESSIONAL RECORD — Extensions of Remarks December 20, 2001 Nadeau Wolves caught the attention and While I appreciate recent words of support Mr. Speaker, I would like to place the Dec- fueled the enthusiasm of sports writers in the from the Indian Government regarding Amer- can Chronicle article into the RECORD. ica’s war against terrorism, it is important that nearby large communities of Menominee and [From the Deccan Chronicle, Dec. 14, 2001] Escanaba. Tom Kaeser, assistant sports editor we do not forget some recent actions by the for the Menominee, Mich.-Marinette, Wis. very same government. For example, in May DELHI KNEW BUT ADVANI SLEPT 1999, the Indian Express reported that the In- EagleHerald, has followed Carney-Nadeau for NEW DELHI, Dec. 13. Union Home Minister a decade. He described the 2001 Class D dian Defense Minister convened a meeting L K Advani had full intelligence information champs as ‘‘a team that came together, loved with the Ambassadors from Cuba, Communist of a terrorist attack on Parliament. China, Russia, Serbia, Libya, and Iraq—the each other and worked hard together for its Despite this, no measures were taken to bright, shining moment.’’ Dennis Grall, Esca- latter two known terrorist nations and potential tighten security in and around the Par- naba Daily Press sports editor, summed up targets in the ongoing effort to eradicate ter- liament House with the five terrorists driv- the team’s season in a Dec. 3 story. ‘‘For 11 ror—to set up a security alliance ‘‘to stop the ing in past two security parameters manner months the Carney-Nadeau Wolves lived U.S.’’. by the Delhi police and the CRPF, unchal- under unbelievably immense expectations and It is also important to re-examine India’s lenged. pressure,’’ ‘‘Dennis wrote. He was on hand— own human rights record in a number of In his first reaction to the terrorist attack, and described the celebration—when the state areas. It has been reported that India re- Advani claimed, ‘‘There has been no breach champs returned home at the head of a two- presses its Christian minority. Specifically, it of security.’’ He said there was ‘‘no intel- mile-long motorcade and were given a police has been reported that nuns have been raped, ligence lapse’’. He said on television that priests have been murdered, and a missionary there could be no protection against fidayeen escort and a fireworks display along the final and his two sons were burned to death. The attacks maintaining that they even ‘‘had the leg of their trip from Escanaba to Carney. media reports that numerous churches have temerity to attack Pentagon.’’ The Home Mr. Speaker, basketball is a team sport, been burned. A few years ago, police gunfire Minister said it was not possible to provide and, as such, every member of the team de- closed a Christian religious festival. In addi- fool-proof security cover in a democracy serves credit for her contribution during this ‘‘where everything was open.’’ The Union tion, the pro-Fascist RSS, the parent organiza- championship season. I am pleased to share Home Ministry has been flooded with intel- tion of the ruling party, published a booklet de- with you the full roster of the 2001 Michigan ligence information about a possible attack tailing how to bring false criminal complaints Class D girls basketball state champion Car- on Parliament by terrorists. The other two against Christians and other minorities. Press ney-Nadeau Wolves: Tara and Carly Benson, targets were identified as Rashtrapati reports indicate that Prime Minister Vajpayee Bhavan and the Prime Minister’s residence. Cindy Charlier, Rachael Folcik, Trisha Her- promised a New York audience that he would Intelligence reports have also suggested nandez, Rachel Kuntze, Leslie Linder, Emily ‘‘always be’’ remain a member this organiza- Marsicek, Jenna Mellen, Trisha Otradovec, the use of women suicide squads. These have tion. also spoken of terrorists using State vehicles Brittany Pipkorn, Cassandra Relken, Shawn Since 1984, certain human rights organiza- to launch the attack, similar to the modus Retaskie, Erin Schetter, and Roseann tions have reported that the Indian govern- operandi of the terrorist groups in Kashmir Schetter. ment has murdered over 250,000 Sikhs. Since for over a decade now. I ask you, Mr. Speaker, to join me and our 1947, over 200,000 Christians have been Despite this, the security agencies were House colleagues in recognizing the skill, de- killed, and since 1988, over 75,000 Kashmiri not alerted. The terrorists used a white am- termination, hard work, optimism, hope, love, Muslims have been killed. In addition, tens of bassador car with a red light, the symbol of and teamwork of the Carney-Nadeau Wolves, thousands of other minorities, such as Dalit government officialdom. Michigan Class D basketball champions. ‘‘untouchables,’’ Tamils, Assamese, Manipuris, They were dressed Black Cat commandos, f and others have been killed. and were detected only after they got out of A May report issued by the Movement the car and displayed their weapons in full NEWSPAPER SAYS INDIAN GOV- public view. Advani, who had been full of ERNMENT KNEW OF PAR- Against State Repression cited the Indian gov- ernment’s admission that 52,268 Sikh political praise for the Delhi police, did not explain LIAMENT ATTACK prisoners are rotting in Indian jails without how the two security rings manned by the police outside Parliament were penetrated charge or trial. It further claims that many with such ease. HON. DAN BURTON have been in illegal custody since 1984. Tens OF INDIANA of thousands of other minorities are also being In fact defence minister George Fernandes stepped out of line by admitting before the IN THE HOUSE OF REPRESENTATIVES held as political prisoners in the country that cameras that the government had full infor- Wednesday, December 19, 2001 proudly proclaims itself ‘‘the world’s largest de- mation about a possible terrorist attack on mocracy.’’ Parliament. Mr. BURTON of Indiana. Mr. Speaker, the Also in May, Indian troops set fire to recent attack on India’s Parliament by terror- He said, ‘‘We had intelligence information Gurdwara (a Sikh temple) and some Sikh of this, we knew that the fidayeen could at- ists must be condemned. While there are homes in a village in Kashmir. Two inde- many legitimate grievances against the Indian tack Parliament.’’ Even so, the home min- pendent investigations have shown that the In- ister claimed there had been no intelligence government, terrorism is never acceptable. dian government carried out the massacre of lapse while briefing reporters after the meet- Nevertheless, the Deccan Chronicle, an Indian 35 Sikhs in Chithisinghpora. These incidents ing of the Cabinet committee on security. newspaper, reported something very inter- are just the tip of the iceberg of Indian terror Najma Heptullah, who was in her room in esting about the recent attack. It reported that against its minorities and its neighbors. Parliament when it was attacked, said, ‘‘The the Indian government knew about the attack Again, while I am grateful for recent words Home Minister knew of the Al Qaeda threat, in advance and did nothing. Thirteen people, of support from the Indian Government regard- he should have increased the security in Par- including the terrorists, lost their lives as a re- ing America’s war against terrorists, the U.S. liament.’’ sult of the attack. Government and the American public should She said she had herself asked for meas- Mr. Speaker, India has a history of sup- not forget about these recent acts of repres- ures to be taken to beef up Parliament secu- porting terrorism and making it look like the sion. Democracies are not supposed to be- rity. ‘‘There are all these people roaming work of others in order to condemn people have this way. If we are going to fight ter- around all over the building’’ but nothing who oppose the actions of the Indian govern- rorism, then we must be consistent. There are had been done. ment and to justify their own attacks on these actions we can take that will help influence Interestingly Advani himself spoke of a targets. According to Soft Target, published in India to end its reign of terror in South Asia. threat to Parliament at a Border Security 1989 by two Canadian journalists, the Indian We must end our aid to India until they dem- Force function a few days ago. Officials point government blew up its own airliner in 1985, onstrate a better regard on human rights. The out that despite the security threat little killing 329 innocent people, including some hard-earned dollars of the American people was done to take stock of the entire situa- tion and work out a comprehensive strategy Americans, to create the impression of ‘‘Sikh should not be going to support countries that to deal with it. terrorism’’ and enhance its repression of the practice terrorism. We should also show our Sikhs. In November 1994, the Hitavada news- support for freedom rather than terrorism by ‘‘It was all in the realm of talk, we have al- ways known that the terrorists have been paper reported that the Indian government supporting a free and fair plebiscite on the using and would use the cover of the govern- paid Surendra Nath, who was then the gov- question of independence in Khalistan, Kash- ment-like vehicles and uniforms to penetrate ernor of Punjab, the equivalent of $1.5 billion mir, Nagalim, and all the nations of South Asia our security layers, but obviously we were to generate and support terrorist activity in that seek freedom from repressive occupation. unable to get this across to our people,’’ a Kashmir and Punjab, Khalistan. Let us strike a blow for freedom, not terrorism. senior official said.

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00024 Fmt 0666 Sfmt 0634 E:\CR\FM\A19DE8.083 pfrm07 PsN: E20PT1 December 20, 2001 CONGRESSIONAL RECORD — Extensions of Remarks E2363 ‘‘THE MOMENT’’ BY BEN STROK in part by the World Trade Center attack in Osama bin Laden had demonstrated their 1993 and the Oklahoma City federal building zealotry in 1993 in the initial attempt to bombing in 1995, have conveyed the anti-im- take down the symbol of world capitalism. HON. BOB BARR They struck again in Saudi Arabia, in OF GEORGIA migrant sentiment in the United States and Yemen, in Tanzania and Kenya before the have sought to reduce the rights and benefits IN THE HOUSE OF REPRESENTATIVES devastating blow on the mainland of the available to immigrants. United States. Wednesday, December 19, 2001 Since 1996, many of us have worked to Al Qaeda had managed to pull together Mr. BARR of Georgia. Mr. Speaker, a 20 undo the damage done to this community. But jihad warriors from Muslim countries in Bos- year-old student at Hunter College in Manhat- our overreaction to September 11th’s attack nia, Algeria, Egypt and Pakistan. This fierce band of warriors with the capacity to kill ci- tan, Ben Strok wrote this poem reflecting on stand to prevent us from advancing our ef- forts. As Americans we pride ourselves in our vilians along with the Taliban in Afghani- the September 11th terrorist attacks. It was re- stan have manifested to the world an inca- cently read at one of my town hall meetings in historical knowledge in looking at the past and pacity to fight against the United States Holly Springs, Georgia, by my constituent, learning from our successes and failures. Im- military. The Al Qaeda and Taliban warriors Becky Babcock. As we enter this holiday sea- mediately following the attacks we strove to have shown an inability to wage modern son, let us remember how invaluable life is respond in an unconventional manner, both warfare. and make the most of each and every mo- here and abroad. Yet, just four months later, That prompts the question, what is left of the Al Qaeda international network? As bin ment. we sit by and allow the Attorney General to in- definitely detain aliens, the use of military tri- Laden forces disintegrate in Afghanistan, THE MOMENT does Al Qaeda remain a formidable terrorist bunals to try those suspected of terrorism, and (By Ben Strok) network capable of threatening American interviews by law enforcement agencies based national security? The extra-constitutional The smoke rises, on ethnic and religious identities. The echoes measures that Attorney General Ashcroft and the ashes fall of Japanese internment camps and McCar- claims that is necessary to save American on someone you know. lives is based on the assumption that the Someone you have not recently told thyism are ringing in the halls of Congress and remnants of bin Laden are still capable of how dear they are to you. I know I am not the only one who hears them. additional savagery. Your last chance, Dr. Wilson cautions, ‘‘in a global society, there is a danger that America will project to The 1993 attack on the World Trade Center may have been a minute ago. and the destruction of the Federal building Your last chance, the world that it only values the life of its own in Oklahoma in 1995, prompted the Clinton might be one minute from now. citizens. The constitution and life will be pre- Administration and Congress to pass the 1996 One precious minute, served for Americans but different standards Anti-Terrorist Act. That Act and the Immi- one precious moment. will be used to measure those who are not gration and Responsibilities Act reduced What does that moment mean to you? citizens of Rome.’’ measurably the rights of permanent resi- I’ll tell you what it means to me. More critically than the projection to the dents and foreigners living in the United That moment, States. Even the Acts passed since Sep- this moment, world, we will tell our fellow countrymen and teach our children that the immigrant life tember 11, 2001 respects the constitutional right now, rights of citizens but run roughshod over is all that matters. should be valued less than the citizen’s life those who are domiciled in the United States What good is the moment that the immigrants who have been the build- and are not citizens. The Patriot Act is simi- if it is not lived for? ing blocks of our pluralistic society generation lar to the Walter/McCarran Act passed in What is life, after generation should stay at the bottom. Dr. 1952. Then the fear was communist organiza- if it is not being relished Wilson warns that this treatment is a ‘‘slippery tions and the law allowed the Immigration for all that it is? slope that can readily lead to the dehumaniza- and Naturalization Service to bar those who It is not life, sought to enter the United States who were it is a wasted moment tion of others.’’ More than ‘‘can lead’’, it does lead, perpetuating an environment of inequal- members of communist or organizations you will never recapture. sympathetic to communism. It is an emotion, ity. With the Patriot Act, the attempt is to you will never again If we sacrifice the constitutional liberties that interdict or deport non-citizens who are have the opportunity to express. we are asking our armed services to defend, members of a terrorist organization or who It is a person then I ask what are we fighting for? Each time seek to raise or to give funds to any terrorist you will never again we give up one of our precious freedoms, we organization. The Attorney General does not be able to see, open the door to surrender more. need to bring the defendants to trial and the and hold, It does not matter if we give up these rights non-citizen can be immediately deported. and tell them for our citizens versus our immigrants because The Attorney General has now assumed how much you love them. powers to indefinitely detain aliens. This It is time, one day these immigrants will be citizens. amounts to a suspension of habeas corpus made up of endless moments, They will not forget that from the inception and the Attorney General now has the power the only differentiating factor being they were told they were less then the people to supersede the rights of INS judges to re- how you lived their children will attend school with. lease a detainee providing that detainee is from one to the next. Our enemy is not the immigrant. Do we suspected to be linked to terrorist activity. f honestly believe that if we harshly punish the No evidence has to be presented in court. immigrant community we are now secure, that Such powers exercised by the state are trou- IMMIGRANTS AND THE NATIONAL we are now safe? bling to constitutional scholars. The ration- INSECURITY By condoning a society that devalues the ale given is national security but there are no checks or balances to ensure that the immigrants’ contributions and vital role in our rights of the defendants are duly protected. HON. CHARLES B. RANGEL community, we degrade ourselves and our Officials at the Justice Department are in- OF NEW YORK history and we condone the inequity that is sisting that the investigation must cast an IN THE HOUSE OF REPRESENTATIVES present in the United States and in the world. extensive net. Thus far the Attorney General If there is one history lesson we should all re- has indicated after prodding from Congress Wednesday, December 19, 2001 member it is our treatment of the most vulner- that 93 persons have been charged with Mr. RANGEL. Mr. Speaker, I rise today to able of our citizens that defines our national minor visa or criminal violations unconnected to events of September 11, 2001. bring the Congress’s attention to a recent arti- character. We are only as strong as our weak- The files of 11 have been sealed and 22 Middle cle in the Carib News entitled ‘‘Immigrants and est link and if we truly want a country where Eastern men who were engaged in obtaining the National Insecurity’’ by Dr. Basil Wilson. all are equal and prosper, we must empower licenses to transport hazardous materials His opinion editorial cogently details our Na- each part of it to succeed. across state lines, all but one, have been re- tion’s current struggle with ensuring our per- IMMIGRANTS AND THE NATIONAL INSECURITY leased. Approximately 548 are in custody, mostly comprised of Middle Eastern males. sonal security while continuing to uphold the [Carib News, Week Ending Dec. 11, 2001] founding principles of this country. The article To extend the dragnet, the Justice Depart- (By Dr. Basil Wilson) ment is asking state and city policy to co- highlights some of our past reactions to times The planning and executing of the bombing operate with them to interview 5,000 Middle of strife and their dramatic impact on our im- of the Pentagon in Washington, D.C., and the Eastern men between the ages of 18 and 33 migrant community. Most notably, the passage implosion of the twin towers led us to be- who entered the United States from January of the 1996 Anti-Terrorist Act and the 1996 lieve that the United States was confronted 2000. They are not necessarily suspected of Immigration and Responsibilities Act, spurred with a formidable foe. The henchmen of any crime but the Justice Department wants

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00025 Fmt 0666 Sfmt 0634 E:\CR\FM\A19DE8.086 pfrm07 PsN: E20PT1 E2364 CONGRESSIONAL RECORD — Extensions of Remarks December 20, 2001 to conduct voluntary interviews with the ex- A liberal columnist like Thomas Freedman world safe for Christians, Jews, Muslims and pectation it might produce leads to deter- equivocates. He recognizes the danger of the non-believers. mine the state of the Al Qaeda network in extra-constitutional decrees but his position the United States. is that the nation is up against an enemy f This amounts to a vulgar form of racial with no love for life and cannot carry out profiling. Racial profiling as it was aimed at business as usual. DUTY SUSPENSIONS African Americans on the New Jersey Turn- In a global society, there is a danger that pike or the unconstitutional search and sei- America will project to the world that it HON. BENJAMIN A. GILMAN zures conducted in Black and Latino neigh- only values the life of its own citizens. The OF NEW YORK borhoods in New York City are examples of constitution and life will be preserved for the might of state power being used against Americans but different standards will be IN THE HOUSE OF REPRESENTATIVES the powerless to maximize domestic secu- used to measure those who are not citizens Wednesday, December 19, 2001 rity. Events of September 11, 2001 necessitate of Rome. It is a slippery slope that can read- additional vigilance on the part of law en- ily lead to the dehumanization of others. Mr. GILMAN. Mr. Speaker, today I am intro- forcement but it is dangerous to pass legisla- Treasuring the e¨weı´ and not the e¨they´ is ducing three bills H.R. 3526, H.R. 3527, and tion oblivious to the rights of non-citizens inextricably linked to the present human H.R. 3528, which would suspend duty on since such legislation jeopardizes the rights condition. That is the troubling issue in the three chemicals imported into the United of all American citizens. Middle East. It is that thought process that States. led to the bombings in Jerusalem. Saturday President Bush announced on November 13, These chemicals are used in the manufac- in his capacity as Commander-in-Chief of the night that resulted in the death of 25 Israelis Armed Forces that the government would re- and over 250 wounded. It is that same men- ture of corrosion inhibitors that protect metal serve the right of trying foreigners during tality that has led to the unending grieving coatings, as well as solvent-based coatings for the course of the war in military tribunals. of the 3,000 lives lost in the World Trade Cen- a variety of industrial and consumer products. Military tribunals were used during the ter. I understand these products are also ‘‘environ- American Civil War and in World War II. Some emergency measures are sorely nec- mentally friendly’’ because they use organic Military tribunals do not require the prepon- essary in light of the holocaust of September molecules, instead of heavy metals, to prevent derance of evidence necessary for conviction 11, 2001. But one of the stranges phenomenon corrosion. in a civilian court or in military courts used of the latter twentieth and the beginning of I have been advised that these chemicals for court martial cases. Conviction in the the twenty-first century is the increasing in- Military Tribunal would not require the security of human life and the proposed solu- are not domestically produced. Thus, enact- same rules of evidence and a two-thirds vote tions to enhance safety which seem to aug- ment of this legislation would allow businesses of the commissioners could lead to a convic- ment the quasi-incarcerated nature of our in this country to reduce their costs and there- tion even in the case of a death penalty. lives. It has prompted the expansion of the by make U.S. industries more competitive in As the New York Times editorial on Sun- penal state with millions in prison and hun- world trade markets. day, December 2, 2001 stated, it is very dif- dreds of thousands leaving prison to be re- Copies of these bills are set out below. ficult to criticize a President when the na- integrated into an economy that is jetti- tion is at war but the editorial board felt soning those who are presently employed. H.R. 3526 compelled to speak out against the extensive The military reserve now provides addi- Be it enacted by the Senate and House of Rep- extra-judicial powers assumed by the Bush tional security on our streets. Airport secu- resentatives of the United States of America in administration. A conservative columnist rity has been federalized and new legislation Congress assembled, like William Safire, who writes for the New has been passed by Congress to counter ter- SECTION 1. TEMPORARY SUSPENSION OF DUTY York Times has condemned the Military Tri- rorism. The Attorney General is convinced ON (2-BENZOTHAZOLYTHIO) bunals as kangaroo courts. Safire is mindful that expanded powers will make us more se- BUTANEDIOIC ACID. of the spectacle of a bin Laden trial and the cure. This should be seen as a temporary (a) IN GENERAL.—Subchapter II of chapter security risks that would entail and suggests holding action. We fought a war in yester- 99 of the Harmonized Tariff Schedule of the rather dispassionately that the United year to make the world safe for democracy. United States is amended by striking head- States should ensure that Osama bin Laden We need to explore a new politics and to con- ing 9902.32.31 and inserting the following new is bombed to smithereens. struct a new global system to make the heading:

‘‘ 9902.32.31 (2-Benzothiazolythio) butanedioic acid (CAS No. 95154–01–1) Free No change No change On or before ’’. (provided for in subheading 2934.20.40). 12/31/2004 H.R. 3527 SECTION 1. TEMPORARY SUSPENSION OF DUTY ON 60–70% AMINE SALT OF 2- (b) EFFECTIVE DATE.—The amendment Be it enacted by the Senate and House of Rep- BENZOTHIAZOLYTHIO SUCCINIC made by subsection (a) applies to articles en- resentatives of the United States of America in ACID IN SOLVENT. tered, or withdrawn from warehouse for con- Congress assembled, (a) IN GENERAL.—Subchapter II of chapter sumption, on or after the 15th day after the 99 of the Harmonized Tariff Schedule of the date of the enactment of this Act. United States is amended by inserting in nu- merical sequence the following new heading:

‘‘ 9902.38.35 60–70% amine salt of 2-benzothiazolythio succinic acid in sol- Free No change No change On or before ’’. vent (provided for in subheading 3824.90.28). 12/31/2004 H.R. 3528 SECTION 1. TEMPORARY SUSPENSION OF DUTY ON 4-METHYL-g-OXO-BENZENE- BU- (b) EFFECTIVE DATE.—The amendment Be it enacted by the Senate and House of Rep- TANOIC ACID COMPOUNDED WITH 4- made by subsection (a) applies to articles en- resentatives of the United States of America in ETHYLMORPHOLINE (2:1). tered, or withdrawn from warehouse for con- Congress assembled, (a) IN GENERAL.—Subchapter II of chapter sumption, on or after the 15th day after the 99 of the Harmonized Tariff Schedule of the date of the enactment of this Act. United States is amended by striking head- ing 9902.38.26 and inserting the following:

‘‘ 9902.38.26 4-Methyl-g-oxo-benzenebutanoic acid compounded with 4- Free No change No change On or before ’’. ethylmorpholine (2:1) (CAS No. 171054–89–0) (provided for in sub- 12/31/2004 heading 3824.90.28).

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00026 Fmt 0666 Sfmt 0634 E:\CR\FM\A19DE8.088 pfrm07 PsN: E20PT1 December 20, 2001 CONGRESSIONAL RECORD — Extensions of Remarks E2365 (b) EFFECTIVE DATE.—The amendment CONFERENCE REPORT ON H.R. 1, past five decades the Guam Women’s Club, made by subsection (a) applies to articles en- NO CHILD LEFT BEHIND ACT OF working on its own and with the support of tered, or withdrawn from warehouse for con- 2001 other civic and service organizations, have sumption, on or after the 15th day after the made great contributions towards the better- date of the enactment of this Act. SPEECH OF ment of the island of Guam. The club was HON. RUSH D. HOLT taken under the wing of the Federation of f Asian Women’s Association (FAWA) in 1958. OF NEW JERSEY Due mainly to the Guam Women’s Club’s af- 21ST CENTURY MONTGOMERY GI IN THE HOUSE OF REPRESENTATIVES filiation, this international organization has BILL ENHANCEMENT ACT Thursday, December 13, 2001 since held four conferences on Guam. AMENDMENTS Mr. HOLT. Mr. Speaker, I rise today to ad- Education is one of the Guam Women’s dress my colleagues regarding H.R. 1, No Club’s paramount concerns. The club has SPEECH OF Child Left Behind. awarded high school, college, and university Although we passed this important legisla- scholarships since its inception. Since 1991, HON. CYNTHIA A. McKINNEY tion last week, I must express my reservations three full time scholarships have been put in place—awarded annually to deserving stu- OF GEORGIA about certain language included in the con- ference report: dents of the University of Guam. To acknowl- IN THE HOUSE OF REPRESENTATIVES edge the value of the teaching profession and The conferees recognize that a quality to honor the island’s teachers in both public Tuesday, December 11, 2001 science education should prepare students to and private schools, the club has held numer- distinguish the data and testable theories of ous gatherings which came to be known as Ms. MCKINNEY. Mr. Speaker, I rise in science from the religious or philosophical claims that are made in the name of science. ‘‘Teachers Teas.’’ strong support of H.R. 1291, the Veterans’ The club has also been very active in beau- Benefit Act of 2001. This bill contains numer- Where topics are taught that may generate controversy (such as biological evolution), tification and facility improvement campaigns. ous provisions that will help our nation’s vet- the curriculum should help students to un- A GWC project in 1954 initiated the establish- erans obtain greater educational opportunities, derstand the full range of scientific views ment of the Guam Museum. GWC was instru- it increases the resources available to assist that exist, why such topics may generate mental in the construction of facilities such as veterans with finding housing, and most impor- controversy, and how scientific discoveries the public pool in Hagaûtn˜a. The construction of can profoundly affect society. tantly, the bill corrects and expands legislation the Padre Palomo Park, for which the club re- to provide compensation and benefits to vet- Outside of the scientific community, the ceived national recognition, the Lalahita Park erans who are disabled. I commend the chair- word ‘‘theory’’ is used to refer to a speculation overlooking the village on Umatac, and the man of the Veterans’ Affairs Committee, Mr. or guess that is based on limited information beautification of San Ramon Hill were made SMITH from New Jersey, and the ranking or knowledge. Among scientists, however, a possible through their efforts. The post office member, Mr. EVANS for their hard work in theory is not a speculation or guess, but a log- petition project they initiated culminated to the bringing this bill to the floor. ical explanation of a collection of experimental opening of a post office in Dededo, the is- One provision in this that I am personally data. Thus, the theory of evolution is not con- land’s most populous village. proud of is section 201, which removes the troversial among scientists. It is an experi- Through both individual and group efforts, 30-year time limit for the presumption of serv- mentally tested theory that is accepted by an GWC members have been directly involved ice connection of respiratory cancers for Viet- overwhelming majority of scientists, both in the with community and civic undertakings. In nam War veterans. This provision is adapted life sciences and the physical sciences. 1963, the club received national recognition from H.R. 1587, the Agent Orange Respiratory The implication in this language that there from the General Federation of Women’s Cancer Act of 2001, which I introduced and are other scientific alternatives to evolution Clubs for their islandwide clean-up campaign. which was cosponsored by 47 of my col- represents a veiled attempt to introduce cre- The GWC Hospital Committee donates an av- leagues. ationism—and, thus, religion—into our erage 150 hours of volunteer work at the schools. Why else would the language be in- Guam Memorial hospital. GWC made signifi- Agent Orange has rained havoc on the lives cluded at all? In fact, this objectionable lan- cant contributions towards the transition of of thousands of Vietnam veterans, causing guage was written by proponents of an idea Guam Youth, Inc. to the Guam Recreation cancer, diabetes, and birth defects. Thankfully, known as ‘‘intelligent design.’’ This concept, Commission—another project that gained for most veterans suffering from their expo- which could also be called ‘‘stealth cre- them national recognition. sure to this herbicide, benefits were made ationism’’, suggests that the only plausible ex- GWC additionally actively participates and available. Unfortunately, a seemingly arbitrary planation for complex life forms is design by contributes toward several local civic programs 30-year time limit was placed on the presump- an intelligent agent. This concept is religion and institutions. From support organizations tion of service connection for respiratory can- masquerading as science. Scientific concepts and facilities such as the Alee Shelter, Erica’s cers—among the most deadly types of cancer. can be tested; intelligent design can never be House, Child Care Co-op, the Guam Lytico Those veterans who suffered from respiratory tested. This is not science, and it should not and Bodig Association, St. Domicic’s Nursing cancers that appeared 30 years after their be taught in our public schools. facility and Rainbows for all Children to na- service were denied service connection, and Mr. Speaker, I am a religious person. I take tional organizations such as Crime Stoppers, thus benefits and assistance for these dis- my religion seriously and feel it deeply. My the Salvation Army, the Guam Chapter of the eases. In effect, the U.S. government told point here is not to attack or diminish religion American Red Cross, and the American Can- them that they were on their own. in any way. My point is to make clear that reli- cer Society’s Guam Unit, the range of GWC’s In a recent study, the Institute of Medicine gion is not science and science is not religion. efforts and interest seems boundless. GWC is stated that there was no evidence that a time The language is this bill can result in dimin- a great contributor to holiday projects such as limit could be placed on the presumption of ishing both science and religion. Sugar Plum Tree and the annual Air Force service connection, and this bill rightly makes f Christmas Drop to sparsely populated outlying that correction to past law. No longer will vet- islands. A benefactor of the Guam Symphony erans who suffer respiratory cancers have to FIFTIETH ANNIVERSARY OF THE Society, GWC is also a major contributor to worry about their government forgetting about GUAM WOMEN’S CLUB the local public broadcasting stations KPRG their service and neglecting their needs. Rare and KGTF. is it that common sense prevails in Congress HON. ROBERT A. UNDERWOOD As the Guam Women’s Club—the island’s to help those in greatest need, but I believe OF GUAM oldest women’s club—celebrates its fiftieth an- that this provision, and this bill, achieve such IN THE HOUSE OF REPRESENTATIVES niversary, I would like to take this opportunity status. I thank the Veterans Committee Chair- to recognize the organization and its mem- man and Ranking Member for their dedicated Wednesday, December 19, 2001 bers. For 50 years, GWC has made substan- attention to the plight and troubles of Amer- Mr. UNDERWOOD. Mr. Speaker, in Feb- tial contributions toward the transformation of ica’s veterans, for including the Agent Orange ruary 1952, a group of women set out to es- Guam and its people. I am confident that the provision in the Veterans Benefits Act of 2001, tablish a non-profit organization designed to island of Guam will continue to reap the bene- and for passing this important piece of legisla- help improve the general education, health fits of GWC’s endeavors for many more years tion. and welfare of the people of Guam. For the to come.

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00027 Fmt 0666 Sfmt 0634 E:\CR\FM\A19DE8.091 pfrm07 PsN: E20PT1 E2366 CONGRESSIONAL RECORD — Extensions of Remarks December 20, 2001 HOME OWNERSHIP EXPANSION RESIST A BILL WITH TAX CUTS not intend for the sun to set on their tax cuts. AND OPPORTUNITIES THAT WOULD DRAIN THE SUR- They stuck in a ‘‘repealer’’ to diminish the ap- PLUS parent size of the tax bill, knowing that Con- gress will be hard-pressed to repeal tax cuts HON. RUBE´N HINOJOSA HON. JOHN M. SPRATT, JR. already in place. In time, the ‘‘repealer’’ itself will probably be repealed. If so, the revenue OF TEXAS OF SOUTH CAROLINA IN THE HOUSE OF REPRESENTATIVES loss will be $373 billion over 2003Ð2012. IN THE HOUSE OF REPRESENTATIVES When each of these actions is taken into Wednesday, December 19, 2001 account, an additional $1 trillion in revenue Wednesday, December 19, 2001 Mr. SPRATT. Mr. Speaker, a year ago, losses has to be deducted from the budget economists surveyed the future and saw noth- Mr. HINOJOSA. Mr. Speaker, I rise today to between 2003 and 2012, along with an addi- ing but surpluses: $5.6 trillion over the next express concerns over the introduction of H.R. tional $143 billion in debt service. The impact ten years. Today, the ten-year surplus is at 3206, the Home Ownership Expansion and on the budget, all told, comes to $1.2 trillion. $2.6 trillion and falling, and virtually all that’s This dashes any hope that the nation can Opportunities Act of 2001. The legislation left comes from Social Security. When the repay its publicly held debt before the baby would allow Ginnie Mae to alter its current role President submits next year’s budget, an up- boomers retire. It also puts the ‘‘stimulus pack- from guaranteeing federally backed mortgage dated economic forecast will come with it, and age’’ in context. Disdaining the vanishing sur- securities to guaranteeing federal and conven- the surplus will officially shrink again. plus and the agenda of tax cuts to come, Re- tional mortgage securities. In short, this legis- the Director of the Office of Management publicans on the Ways and Means Committee lation transforms this entity into a full func- and Budget, Mitchell Daniels, blames the brought forth a stimulus package full of tax tioning Government Sponsored Enterprise. economy, extra spending, the fight against ter- cuts with doubtful effects on the economy, but While I am not necessarily opposed to the rorism—everything but tax cuts. All of these with a clear impact on the surplus, reducing it creation of an additional Government Spon- have an impact, but over ten years, the Bush by $250 billion over the next ten years. If this sored Enterprise, I am opposed to the creation tax cuts take a toll of $1.7 trillion on the budg- bill became law, it would push the overall price of an entity that draws from Federal capital et, and account for 55% of the depletion in the of the pending tax-cut agenda to almost $3.5 surplus—and this is just the toll of tax cuts al- and is not subject to government guidelines trillion and wipe out what remains of the sur- ready passed. Marking time is a little-noticed and goals geared toward increasing home plus. agenda of highly probable, politically compel- ownership and improving the American econ- The projection of ten-year surpluses soaring ling tax cuts that could wipe out much of the omy. toward $6 trillion left in its wake a sense of eu- remaining surplus. phoria, a feeling that we could have it all. It’s This legislation would allow Ginnie Mae to At the top of this agenda, awaiting a fix, is clear now that we can’t, but in the meantime, operate with equal flexibility and larger secu- the alternative minimum tax (AMT). Last year out-sized tax cuts have overridden other prior- rity than current Government Sponsored En- only 1.5 million individual taxpayers had to ities, like prescription drug coverage under terprises in the housing mortgage market, in- deal with the AMT, but due to inflation, rising Medicare. If we want to put the economy and cluding Fannie Mae and Freddie Mac. How- incomes, and an unindexed exemption, the the budget back on path, there is an axiom ever, it would not require that Ginnie Mae AMT will become a household acronym to mil- worth recalling from the days of intractable meet the housing goals established by the lions of middle-income Americans. deficits: When you find yourself in a hole, the U.S. Department of Housing and Urban Devel- Before enactment of the Bush tax cuts, the first rule is to quit digging. That’s why we opment. These goals are designed to ensure number of individual taxpayers affected by the should resist a bill with tax cuts that would AMT was expected to mushroom to 17.5 mil- that every American can and one day will be drain the surplus without stimulating the econ- lion by 2010. The Bush tax act created new able to achieve the dream of home ownership. omy. tax benefits without corresponding adjust- f Therefore, it is unclear how this legislation ments to the AMT, at least not after 2004. As would help consumers or expand homeowner- a result, the number of taxpayers affected by PERSONAL EXPLANATION ship opportunities for minorities, low- to mod- the AMT will double by 2010, grow to 35.5 mil- erate-income families, and other traditionally lion—or to one in every three individual tax- HON. MIKE McINTYRE underserved markets. The legislation that ex- payers. When these folks find that tax benefits OF NORTH CAROLINA are extended in one part of the code only to pands the role and scope of Ginnie Mae does IN THE HOUSE OF REPRESENTATIVES not make them subject to mandatory afford- be retracted in another, they will protest bit- able housing goals, borrower income caps, or terly, and in time Congress is certain to fix the Wednesday, December 19, 2001 limit their business to first time buyers. These AMT so that it does not come down on mid- Mr. MCINTYRE. Mr. Speaker, on rollcall ideals have made organizations like Fannie dle-income taxpayers. The cost of confining Nos. 499 and 500, I was absent since I was Mae and Freddie Mac an attractive and worthy the AMT to its ambit before the Bush tax cuts unavoidably detained because of a security government sponsored enterprise and prompt- would be about $268 billion over 2003Ð12. But breach at the Charlotte Douglas Airport, which ed them to create new ways to expand the this would leave more than 17 million tax- caused me to be unexpectedly re-routed number of first-time borrowers or break down payers facing the AMT. If taxable income ex- through another airport on a later flight. empt from the AMT were indexed at last barriers to homeownership. This occurred on Tuesday, December 18, year’s level, those affected in 2010 could be 2001. Had I been present, I would have voted What this legislation does is make this gov- limited to about 8 million, but at a heavy cost, ‘‘yea.’’ ernment entity function like a private corpora- a further revenue loss of $241 billion. f tion, allowing Ginnie Mae to guarantee loans Just as probable as some fix to the AMT is not just to people who need the extra help, but the renewal of tax benefits set to expire. The COMMENDING THE CANTON JUN- also to those who can and should be using tax code is full of short-lived benefits. CBO IOR/SENIOR HIGH SCHOOL’S SEP- the private market. Under these rules, I see no and OMB do not try to divine what Congress TEMBER 11 REMEMBRANCE PRO- need to provide federal support for an organi- will do when these deductions and credits GRAM zation that will perform a function in the hous- reach the end of their legislated lives. They ing market that can be executed by a private simply assume that expiring provisions will not HON. NANCY L. JOHNSON banking organization. be renewed. But these are popular tax bene- OF CONNECTICUT fits, and they are almost always renewed. The IN THE HOUSE OF REPRESENTATIVES Mr. Speaker, our nation’s housing finance revenues forgone by renewing the most promi- system is the model of the world. We should nent tax benefits from 2003 through 2012 Wednesday, December 19, 2001 be concentrating our resources, time and ef- would be about $174 billion. Mrs. JOHNSON of Connecticut. Mr. Speak- fort in closing the gap of homeownership rates This, however, omits the largest expiring er, I rise today to honor the students and fac- between minority families and the larger provision. In an effort to shoehorn as many tax ulty at Canton Junior/Senior High School in homeownership rate. We have the tools nec- cuts as possible into a package limited to Connecticut’s Sixth Congressional District for essary to improve ownership numbers; let’s $1.35 trillion, congressional Republicans put a their beautifully touching remembrance pro- use what we have to successfully meet our ‘‘sunset’’ in their tax bill, terminating all of the gram held in honor of the victims of the Sep- laudable goals. cuts by the end of 2010. They obviously do tember 11th terrorist attacks.

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00028 Fmt 0666 Sfmt 9920 E:\CR\FM\A19DE8.095 pfrm07 PsN: E20PT1 December 20, 2001 CONGRESSIONAL RECORD — Extensions of Remarks E2367 The students took the initiative to plan and the flame that was lit so long ago burning Clarene Lincoln and her twin brother were run the entire program, in which stories, bright and true. For if we keep on pouring born in the Shenandoah Valley of Virginia, poems and songs were shared, honoring our heart and soul into our songs, prayers, near the town of Tenth Legion on January 11, and actions, then there is nothing and no one 1902. Clarene rode horseback to elementary those who so unexpectedly and tragically lost that can ever douse the flame. their lives. They also created a chain of 6,000 school and went by sleigh in the winter. When AS ONE WHOLE circles, which was looped around the audito- she entered high school, she went to live dur- rium, to provide a dramatic reminder of the (By Robin Engelke, Grade 8, Canton Junior ing the week in Harrisonburg, Virginia, and High School) number of people who were thought to have came home on the weekends. She graduated died on that terrible day. The chain captured As one whole, from Elon College in North Carolina in 1925. we share one soul. both the enormity of the tragedy and the value After teaching at Huntington Girls’ College in of each individual life. But ever optimistic, the We all pray and hope, Montgomery, Alabama, she went to Duke Uni- As a nation we cope. chain, as one student eloquently said, was a versity for a Master’s Degree and met W.B. reminder that after the attacks, ‘‘the great Tragedies don’t always bring bad, Robertson. Their summer romance has lasted Look back to the one’s we’ve already had. chain of America—the chain that links every 65 years. They married in 1936 and moved to single citizen of our country—strengthened ten ‘‘Always for the best.’’ I say Rutherfordton, North Carolina, where Clarene All I can think about is that day. thousand fold.’’ began her 30-year teaching career at Central That vital and heartfelt presentation cap- The one where the towers fell, High School. She initially taught both English tured the spirit of America’s journey as we That day felt as if we went to hell. and American History, but she moved to his- watched the unfolding events in horror and As one whole, tory only when one of her students said, ‘‘Oh, disbelief and then as we grieved with great the tragedy was a form of defeat, Mrs. Robertson, you learned me all the but not for America we hadn’t been beat. sorrow at the lives and dreams shattered by English I ever knowed.’’ evil. Despite the anger and hatred that has As everyone fumbled to find a loved one Mrs. Robertson gave birth to her only nat- In New York City there was no sun. touched all our hearts, these students dem- ural child, daughter Mary Ella in January 1938. onstrated the power of love for others. It is No sun to shine or gleam or burn, Arthur, her stepson from Mr. Robertson’s pre- Those fires did burn, but who did this to us vious marriage, died at age 65. Clarene and that power that will make our free and caring will take their turn. country able to defeat the hatred of those ‘‘Robby’’ have five grandchildren and eight As one whole, great grandchildren. Only a year or so ago, whose poverty made them easy prey for the we share one soul preachers of death and destruction. they moved from Rutherfordton to Blanco, I commend the students of Canton Junior/ Texas, where they live with Mary Ella and her REFLECTION husband David. Senior High for expressing in words and ac- (By Louise Eich) tions the thoughts and feelings of Americans Clarene Robertson taught high school September 11th, 2001 was a day when the everywhere. American History like a college course. Some clock stood still. Loved ones ran to each students opted to take the required course in MEMORIAL SERVICE other, crying, embracing as the ground summer school to avoid the rigor of her class. (Patriotic Paper by Lauren Schwartzman) shook from the buildings crumbling. Fire- Others—some willingly, some reluctantly— September 11th. Do you feel what I feel fighters and police officers showed braveness submitted to her demanding academic stand- when you hear that date? Can you feel the needed in a war, to fight and die for other’s happiness. The black scorched their helmets, ards. Those students often completed the death in that date? The tears cried by three course with both a deeper knowledge of and hundred million eyes for six thousand people. made their throats dry and itchy, but they People whose lives were so brutally, so cru- marched on. appreciation for our Nation’s history and an elly cut short that day. We are crying for Everything stopped at that moment again, eagerness to follow current events and en- those dreams shattered and lost, dreams of as they watched the second tower fall. Si- gage in civic and political life. life that will never be fulfilled. lence struck the air, and the first scream and Doug Tanner graduated from high school in Can you feel the hatred in that date? The siren pierced through the stillness. 1964, having taken her history class in 1962Ð awful, black hate these terrorists must feel The country went through a breakdown, a 1963. Both he and Mrs. Robertson recall that toward us to have done such unbelievable cry for help as everything turned to chaos. Doug entered the class reflecting and embrac- Planes were brought down, schools canceled, things. ing the strong racial prejudice typical of white Can you feel the shock in that date? The as the city of New York shut down. shock of a fact we have ignored for so long. But America stayed strong. We stepped Southerners at the time. Clarene Robertson That fact that maybe we are taking the safe- right back up. New York has been opened up was not about to let him continue to carry that ty of America for granted. That maybe tak- again, our flags wave high, and we promised attitude without her having challenged it as ing it for granted has left it not so safe any- to fight the evil that possessed the planes to thoroughly and effectively as she possibly more. The shock that made every Ameri- crash on us. could. can’s heart skip several beats, the shock We will stand strong, America. We will re- The civil rights movement was nearing its that branded a look of sadness on our faces. build a nation of togetherness, and we will height in the spring of 1963, and current Traces of that helpless look still linger, and come out victorious. They can destroy our events were a regular part of the curriculum. it will be a long, long time before they com- towers, but they can never destroy the foun- In addition, Mrs. Robertson required Doug to pletely fade away. dations of our hearts. Can you feel the anger in that date? The read John Howard Griffin’s ‘‘Black Like Me’’ acid fire that was lit in our hearts the mo- f and, in spite of resistance, assigned him to a ment we knew the names of those inhuman IN TRIBUTE TO CLARENE LINCOLN select group of students to make a presen- people who attacked our country. The same ROBERTSON tation on African-American history to the rest fire that kindles our attacks on these terror- of the class. Although several other students ists now. This fire will also take a long time readily volunteered for the project, Mrs. Rob- to turn to cold ashes. But can you also feel HON. NANCY PELOSI ertson assigned some of them to other topics. that other little bit I feel in that date? Can OF CALIFORNIA She insisted that Doug be among those who you feel in that date the great chain of IN THE HOUSE OF REPRESENTATIVES would learn and wrestle with all the issues of America, the chain that links every single citizen of our country, strengthen ten thou- Wednesday, December 19, 2001 race in America. Mrs. Robertson also served sand fold? Can you feel that? Through all of as advisor to the student government, and the death and tears and hate and shock, can Ms. PELOSI. Mr. Speaker, many of us in worked closely with Doug in his capacity as you feel that bit of unity and hope shining the U.S. House of Representatives have had junior class president. through? That light that embodies America our lives enriched and our spirits strengthened The following summer, when the civil rights better than any two buildings ever could. An through the work of Rev. Doug Tanner, Presi- movement touched Doug’s heart more directly untouchable flame that cannot be doused by dent of the Faith & Politics Institute. His teach- through experiences in his southeastern Meth- hate or death or any mere person! For I look er and mentor, Clarene Lincoln Robertson odist Youth Fellowship, his mind was prepared at America as a candle. Some people call it taught American History to Doug at Ruther- to embrace the monumental change that racial the fabric, or the foundation, but I call it the fordton-Spindale Central High School in North candle. A candle built by the courage of desegregation was bringing throughout the Americans, expanded by the courage of Carolina in 1962Ð1963. Doug Tanner was one South. It was in that notable historical context Americans, protected by the courage of of the students whose life and vocation she that Doug received his calling into a ministry Americans, made free by the courage of profoundly influenced. I rise today to pay trib- combining faith, racial justice, and politics. Americans, and now we must do whatever it ute to Clarene Lincoln Robertson who will be Today, Clarene Robertson’s influence on takes to protect that freedom. We must keep 100 years old on January 11, 2002. Doug has helped him to lead the Institute’s

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00029 Fmt 0666 Sfmt 9920 E:\CR\FM\A19DE8.098 pfrm07 PsN: E20PT1 E2368 CONGRESSIONAL RECORD — Extensions of Remarks December 20, 2001 Congressional Conversations on Race pro- HONORING R. LAWRENCE interest in understanding human motivation. gram and its Congressional Civil Rights Pil- COUGHLIN, JR. While a student at the University of Rhode Is- grimages to Alabama. We are indebted to land, she fought to affect public policy, found- Mrs. Robertson for being such an exceptional HON. WILLIAM J. COYNE ing the URI Chapter of the Campaign to End teacher and mentor. It is with great pleasure OF PENNSYLVANIA the Death Penalty, volunteering with America and appreciation that we wish her a very IN THE HOUSE OF REPRESENTATIVES Reads and mentoring children in Head Start. happy 100th birthday on January 11, 2002. In her spare time she mastered equestrian Wednesday, December 19, 2001 arts and Tai Kwan Do kickboxing. At Oxford, Rachel will study English and f Mr. COYNE. Mr. Speaker, I rise today to join in this special order honoring our former theater history, and when she returns she TRIBUTE TO ROBERT LAWRENCE colleague, R. Lawrence Coughlin. I want to hopes to direct theatrical performances. Al- COUGHLIN, JR. thank Mr. GEKAS for organizing this special ready, Rachel has shared her talent with Per- order. ishable Theater in Providence where she Larry Coughlin represented a suburban works full-time. HON. F. JAMES SENSENBRENNER, JR. Philadelphia district in the House of Rep- I know my colleagues understand the high resentatives for 24 years. He was a gracious honor that the Rhodes Scholarship bestows. It OF WISCONSIN gentleman who represented his constituents signals tremendous achievement and even greater promise. On behalf of the entire Sec- IN THE HOUSE OF REPRESENTATIVES with integrity and wisdom. Mr. Coughlin had a remarkable background. ond Congressional District of Rhode Island, I Wednesday, December 19, 2001 Raised on a farm in Pennsylvania, he earned want to express our pride in Rachel’s success. a degree in economics from Yale and an MBA Her example is inspiring and her future is Mr. SENSENBRENNER. Mr. Speaker, it is from Harvard. He subsequently attended night overflowing with possibility. I just hope she with sadness that I note the death of a former school at Temple University to get his law de- comes home once in awhile to remind all colleague and a great Pennsylvanian, Mr. gree while working during the day as a fore- Rhode Islanders that the smallest of states Robert Lawrence Coughlin, Jr., who passed man in a steel plant. His academic accom- can produce the biggest of successes. away last month. plishments speak to his energy and ability. f Larry grew up on his father’s farm near Mr. Coughlin was also a dedicated public BEST PHARMACEUTICALS FOR Scranton, Pennsylvania. But he was no farm- servant. He served in the Marines in Korea CHILDREN ACT hand. Making the most of his opportunities, during the Korean War as a aide-de-camp to Larry graduated from the Hotchkiss School in legendary Marine Lt. General Lewis B. SPEECH OF ‘‘Chesty’’ Puller. He served ably in the Penn- Connecticut in 1946, he received an Econom- sylvania House of Representatives and Sen- HON. SHEILA JACKSON-LEE ics degree from Yale in 1950, a Masters de- OF TEXAS ate before running for—and winning—a seat in IN THE HOUSE OF REPRESENTATIVES gree in Business Administration from Harvard, Congress in 1968. and a law degree from Temple University’s During his 12 terms in Congress, Rep- Tuesday, December 18, 2001 law school in 1958. While at Temple, Larry at- resentative Coughlin served on the House Ju- Ms. JACKSON-LEE of Texas. Mr. Speaker, tended classes at night, and was a foreman diciary Committee, the House Appropriations I rise in support of S. 1789, the Best Pharma- on a steel assembly line during the day. Committee, and the House Select Committee ceuticals for Children Act. As Chair of the This ‘‘steely’’ resolve served him well on Narcotics Abuse and Control. He was par- Congressional Children’s Caucus, the welfare throughout his career. As a Marine, Larry ticularly active in working to increase federal of children has always been a top priority for fought in the Korean War, and was aide-de- housing and transportation assistance to our me. The bill before us today is reauthorizing camp to Lt. General Lewis B. ‘‘Chesty’’ Puller. nation’s cities. Mr. Coughlin understood that legislation designed to ensure that more medi- When he was elected to Congress, he was even affluent suburbs like the ones he rep- cines are tested for children and that useful Chairman of the Capitol Hill Marines, which resented depend upon central cities for their prescribing and dosing information appears on represented Members who had been in the continued economic well-being. Our nation is labels. Under a 1997 law, pharmaceutical compa- Marine Corps. healthier and more prosperous as a result of his service in Congress. nies that test drugs on children at the request Larry was first elected to the U.S. House of Larry Coughlin was always a quiet, upbeat, of the FDA are given an extra six months of Representatives in 1968. He came from a courteous man. It was an honor and a pleas- exclusive marketing rights. This law was family that had some experience in the field of ure to serve in the House of Representatives aimed at encouraging drug companies to test public service as his uncle, Clarence Coughlin, with him. I join my colleagues in mourning his their products on children so that a pediatri- was a former Republican Representative. passing. cian would be able to prescribe appropriate Representing a wealthy suburb of Philadelphia f doses for children. As a result of this law, we from 1969 to 1993, Larry was so popular per- have seen more drugs for children on the mar- HONORING RACHEL WALSHE FOR sonally and politically, that he was almost al- ket that have a label telling how they can be RECEIVING A RHODES SCHOLAR- ways easily elected. It wasn’t until after he re- used, and even more basic information for pe- SHIP tired that Democrats were able to field signifi- diatricians. cant competitors for that seat. The difficulty of prescribing medicine for HON. JAMES R. LANGEVIN children results from various factors: a child’s A tall and authoritative man, Larry always OF RHODE ISLAND weight and metabolism, the quick metamor- had a way with people. With his military back- IN THE HOUSE OF REPRESENTATIVES phosis of a child’s body, and a child’s inac- ground and penchant for bow ties, Larry came curate information about how medicines are Wednesday, December 19, 2001 across—rightfully so—as a gentleman and a affecting them. scholar. While he briefly served on the House Mr. LANGEVIN. Mr. Speaker, I rise to pay A recent six-week study done in Boston Judiciary Committee, he spent most of his ca- tribute to Rachel Walshe, who hails from my found that over that time, 616 prescriptions reer on the Appropriations Committee. Al- hometown of Warwick, Rhode Island, and is written for children contained errors. Of those, though I never had the opportunity to directly the first woman from a New England public 26 actually harmed children. Of the errors that work with him on the Judiciary Committee, I university to receive a Rhodes Scholarship. were caught before the medication was ad- did work with him on several issues. The na- Rachel was selected for the prestigious ministered, 18 could have been fatal. Medica- tion last a good legislator when Larry re- Rhodes Scholarship from among 925 appli- tion errors in hospitals occur three times more signed, and on November 30, the world lost a cants from across the nation for her leadership often with children than with adults. This bill potential, academic achievement, and per- good man. can help prevent such mistakes by prescribing sonal integrity. Throughout her 23 years, Ra- adequate testing and proper labeling. It is with a heavy heart that I say good-bye chel has consistently demonstrated all of Mr. Speaker, S. 1789 also requires that the to Larry. My wife Cheryl and I would like to ex- these characteristics. Graduating last year General Accounting Office (GAO) study the in- press our condolences to his wife Susan, and from the University of Rhode Island with high- clusion of children of ethnic and racial minori- the entire family, in this time of sorrow and est honors, she focused on the philosophy of ties in drug studies. Ethnic and racial minori- sadness. They will be in our prayers. religions, a major she crafted to explore her ties make up a substantial percentage of our

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00030 Fmt 0666 Sfmt 9920 E:\CR\FM\A19DE8.100 pfrm07 PsN: E20PT1 December 20, 2001 CONGRESSIONAL RECORD — Extensions of Remarks E2369 population, yet many studies do not reflect the REMEMBERING MARSHA HANLEY H.R. 3178, WATER INFRASTRUC- multi-cultural and multi-racial fabric of our soci- TURE SECURITY AND RESEARCH ety. HON. BRIAN D. KERNS DEVELOPMENT ACT Mr. Speaker, S. 1789, which reflects a con- OF INDIANA sensus of the sponsors of both the earlier SPEECH OF House and Senate passed bills, is a good bill. IN THE HOUSE OF REPRESENTATIVES It is a necessary bill—necessary to protect the Wednesday, December 19, 2001 HON. SHEILA JACKSON-LEE OF TEXAS welfare of our nation’s children. Mr. KERNS. Mr. Speaker, today I rise to f recognize a great Hoosier, a great American— IN THE HOUSE OF REPRESENTATIVES TRIBUTE TO HABITAT FOR HU- Marsha Hanley. Marsha wore many hats dur- Tuesday, December 18, 2001 MANITY IN SPRINGFIELD, MIS- ing her lifetime—wife, mother, grandmother, Ms. JACKSON-LEE of Texas. Mr. Speaker, SOURI volunteer, community leader, and an advocate I am pleased that ‘‘H.R. 3178, Water Infra- for homeless children. structure Security and Research Development HON. ROY BLUNT On this day, Marsha Hanley was laid to rest Act’’ and the Development of Anti-Terrorism by her husband, Harold, children, family, and OF MISSOURI Tools for Water Infrastructure was brought to friends after leaving our world this past Sun- IN THE HOUSE OF REPRESENTATIVES the floor today. day. The manner in which she led her life— Wednesday, December 19, 2001 Mr. Speaker, the nation’s water supply and her kindness, her love of country, her devotion water quality infrastructure have long been Mr. BLUNT. Mr. Speaker, I rise today to pay to her family—serves as an example for oth- recognized as being potentially vulnerable to tribute to a group in Southwest Missouri that ers to follow. terrorist attacks of various types, including intends to turn a careless act of pollution into A life-long Republican, Marsha cared deeply physical disruption, bioterrorism/chemical con- hope for families. Part of the American dream about her community and country. She fol- tamination, and cyber attack. Interest in such is buying a home for your family. Home own- lowed the issues closely with great interest problems has increased since the September ership in America is at record levels. Two of and was not afraid to express her opinion. 11, 2001 attacks on the World Trade Center three families owns or is buying their primary Mr. Speaker, I would like to have been and the Pentagon. Damage or destruction to residence. But for many families that dream is home in Indiana to pay my respects, but as these systems by terrorist attack could disrupt beyond reach. you know—and as I am sure she would un- Working with Habitat for Humanity, the the delivery of vital human services, threat- derstand—we have important legislation be- ening public health and the environment, or House of Representatives has supported in fore us in Congress on this day. While my word and deed a commitment to home owner- possibly causing loss of life. heart is with Marsha and her loved ones in In- Water infrastructure systems include surface ship for low-income families. Members of this diana, my duties keep me in our nation’s Cap- body have assisted in raising funds and work- and ground water sources of untreated water itol. for municipal, industrial, agricultural, and con- ing on homes that are ‘‘dreams come true’’ for We are all richer for having known Marsha, many disadvantaged families. In Southwest sumer needs; dams, reservoirs, aqueducts, and the lives of so many others have been en- and pipes that contain and transport raw Missouri I have assisted in putting up the walls riched because of her good work. While we on four homes in what has become an annual water; treatment facilities that remove contami- will miss her, we take comfort in the knowl- nants; finished water reservoirs; systems that event that my staff and I look forward to. Habi- edge that she is now in a better place and tat for Humanity is a charity that has been in- distribute water to users; and wastewater col- with our Father in heaven. lection and treatment facilities. Across the strumental in helping thousands of families God bless you Marsha Hanley. find permanent and affordable shelter. Home country, these systems comprise more than ownership contributes to building strong fami- f 75,000 dams and reservoirs, thousands of lies. It inspires a family’s desire to improve miles of pipes and aqueducts, 168,000 public IN RECOGNITION OF MARY and protect it’s personal stake in the commu- drinking water facilities, and about 16,000 pub- DANIELS ON HER RETIREMENT nity as well as promotes civic participation and licly owned wastewater treatment facilities. involvement. Ownership and management are both public More importantly today, I am pleased to an- HON. JAMES R. LANGEVIN and private; the federal government has re- nounce that Habitat for Humanity of Spring- OF RHODE ISLAND sponsibility for hundreds of dams and diver- field, Missouri has received a grant from the IN THE HOUSE OF REPRESENTATIVES sion structures, but the vast majority of the na- tion’s water infrastructure is either privately Corporation for National Community Service Wednesday, December 19, 2001 specifically to fund a service event on the Mar- owned or owned by non-federal units of gov- tin Luther King Jr. holiday this coming year. Mr. LANGEVIN. Mr. Speaker, I am pleased ernment. The $7,500 grant will be used to fund the or- to recognize one of my constituents, Mary Mr. Speaker, the federal government has ganization’s kick-off of their new program ‘‘Alu- Daniels of Cranston, as she begins her retire- built hundreds of water projects over the minum Cans Build Habitat Houses.’’ On Martin ment at the impressive age of eighty-four. years, primarily dams and reservoirs for irriga- Luther King Jr. Day 2002, hundreds of youth On Friday, December 7, Mary completed tion development and flood control, with mu- will be working throughout my district picking her final day of work at Leviton, an electrical nicipal and industrial water use as an inci- up and recycling aluminum cans. The money equipment manufacturer that is one of the dental, self-financed, project purpose. Be- raised from collecting the cans will be used to largest employers in Rhode Island. For thirty- cause of the size and scope of many of these build Habitat houses and also to provide a seven years, Mary served as a dedicated and facilities, they are critically entwined with the scholarship for a high school student in our diligent worker, completing any task that was nation’s overall water supply, transportation, district. put before her. She will be remembered by and electricity infrastructure. Threats resulting I commend my local chapter for its contin- her coworkers for her kindness to her friends in physical destruction to any of these systems ued involvement in Southwest Missouri and its and family, her impressive work ethic, and her could include disruption of operating or dis- proactive efforts to engage young people in strong character. tribution system components, power or tele- public service. Those of us who have been After many years of working to support her communications systems, electronic control privileged enough to help on Habitat projects family, Mary may now take full advantage of systems, and actual damage to reservoirs and have seen the unity that this organization can her retirement. I am certain that she will enjoy pumping stations. A loss of flow and pressure bring to our communities. Few things are more these golden years, as her strong spirit will would cause problems for water customers inspiring than witnessing people from vastly keep her active. Her four children and eight and also would drastically hinder firefighting different backgrounds and ethnic heritages grandchildren are also certain to benefit now efforts. Bioterrorism or chemical threats could working together to help a family achieve their that she has more time to prepare family deliver massive contamination by small dream. meals and her famous lemon meringue pie. amounts of microbiological agents or toxic It is fitting that this grant, given in honor of I encourage Mary to take full advantage of chemicals and could endanger the public Martin Luther King Jr., be used for a project her retirement years, to spend more time with health of thousands. that unifies. I can think of no better way to her loved ones, and to pursue all of her Water supply was one of eight critical infra- honor the legacy of a man who sought to dreams. I now ask my colleagues to join me structure systems identified in President Clin- sweep away the barriers that kept all Ameri- in congratulating this impressive woman on ton’s 1998 Presidential Decision Directive as cans from pursuing the American dream. her notable achievement. part of a coordinated national effort to achieve

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00031 Fmt 0666 Sfmt 9920 E:\CR\FM\A20DE8.002 pfrm07 PsN: E20PT1 E2370 CONGRESSIONAL RECORD — Extensions of Remarks December 20, 2001 the capability to protect the nation’s critical in- utes to each and every one of our Sheridan successful, the Department of Energy moved frastructure from intentional acts that would di- experiences. the plant into a standby shutdown. minish them. Community service for those less fortunate For nearly ten years, this standby mode Mr. Speaker, since September 11, the na- than ourselves; the appreciation of nature at cost the American taxpayers $32 million per the mountain campus that has made us all tion’s drinking water utilities have been on a better stewards of our environment; both of year, even though there was no functional pur- heightened state of alert to protect against the these are hallmarks of the Sheridan experi- pose for maintaining this standby status. I potential disruption of water service and bio- ence. have twice introduced legislation to perma- logical and chemical contamination of drinking No graduate will soon forget the times nently close this environmentally risky, fiscally water supplies. Fortunately, before September we’ve had or the things we’ve learned. But wasteful, and technologically unnecessary fa- 11, the water supply community was already more importantly, we won’t forget each cility. at work with the U.S. Environmental Protection other. The friendships we have made will Mr. Speaker, nuclear contamination from the stick with us the rest of our lives. It is very Hanford Nuclear Reservation has long threat- Agency, the Federal Bureau of Investigation rare that you get to have such a close rela- and other federal agencies to develop meth- tionship with your fellow classmates at ened the Columbia River and the hundreds of ods and tools to protect water system facilities school. Although sometimes it is frustrating thousands of Oregonians living downstream. and consumers. Several drinking water organi- to have such a small class and small school, The millions of dollars previously spent keep- zations and EPA are currently sponsoring var- in the end it is uniquely Sheridan because ing the FFTF on standby can finally be used ious research and development projects ad- your classmates and school are always there to perform the clean up that is essential to en- dressing water system security issues. These for you in any situation. All of us, including sure environmental safety and clean drinking projects include tools for assessing me, can remember when Sheridan was there water for Oregonians. to support us, to share our joy, or lessen our The Department of Energy has taken an im- vulnerabilities, preparations for response and sorrow. If there is one thing we all take away recovery in the event of an attack, under- from Sheridan it is the friendships we have portant step today to remedy the environ- standing the impact of potential biological and made. mental problems caused by the Hanford facil- chemical agents, and training of water system On behalf of my entire class and the entire ity. I look forward to working with Secretary personnel on security issues. student body, I would like to thank the fac- Abraham in the coming months and years to Mr. Speaker, I would like to thank my col- ulty and the wonderful staff. All of you have ensure that Hanford will no longer pose a leagues on the Science Committee for sup- helped us in ways you can not imagine. health threat to those living in the Columbia porting my amendment on H.R. 3178. The Thank you especially to all of the teachers River region. amendment I offered, which was passed in the who have taught us over the years. Mrs. Lytle in kindergarten, Mrs. Miller and Mrs. f Committee is to ensure that the grants award- Curtis in second grade. Mrs. Goldstein in ed under this bill are made to meet the needs PAYING TRIBUTE TO THOMAS third and fifth grade. Mrs. Pelton, Mrs. MOORE of water supply systems of various sizes and Arcuri, Ms. Provonsil, Mr. Walton, Mrs. are provided to geographically, socially and Cresswell, Mr. Powell, Mrs. Kotler, Mrs. economically diverse recipients. Haggerty, Senorita Fabiola, Mrs. Garcia HON. SCOTT McINNIS Mr. Speaker, this bill is critical in protecting deMendoza, Mrs. Sacher and Madame. Of OF COLORADO course, a special thanks to Ms. Brown and one of our nation’s most precious resources— IN THE HOUSE OF REPRESENTATIVES the water supply. As indicated, protecting our Mr. Helfand for helping us through this year and the high school admissions process. Mr. Thursday, December 20, 2001 water supply is important to the future of this Plummer, thank you for being a great prin- Mr. McINNIS. Mr. Speaker, I would like to nation and ensuring that our children are pro- cipal, always smiling, and always having tected from any terrorist act. H.R. 3178, I be- candy. take this opportunity to recognize Thomas lieve has the greatest potential to ensure the In conclusion, earlier I mentioned the Moore of Grand Junction, Colorado and thank safety of our water systems. privilege of a Sheridan education. him for his service to this country. Thomas f However, this privilege demands responsi- began his service to our nation as a sailor, bility from all of us here today. A responsi- joining the Navy at a young age to travel and AMERICAN YOUTH bility to be a friend, a responsibility to help experience the world. Early in his service, others, and a responsibility to respect our Thomas participated in a moment that would environment. change the world and bring this nation into HON. SAM JOHNSON But most importantly, a responsibility to OF TEXAS honor the values and education we were priv- war. The moment was Pearl Harbor on De- IN THE HOUSE OF REPRESENTATIVES ileged to receive. The Sheridan experience cember 7, 1941. Thomas was assigned to the battleship USS Wednesday, December 19, 2001 has shaped our lives. Thank you parents, thank you teachers, Maryland on that December morning. He was Mr. SAM J0HNSON of Texas. Mr. Speaker, thank you classmates, thank you Sheridan. serving as a hospital apprentice, learning the one of the best aspects of our job is the ability f skills to assist surgeons in operating proce- to call to the attention of our colleagues, ex- dures. As his ship, along with other ships, amples of the leadership, maturity, patriotism ON THE DECISION OF SECRETARY were bombed and torpedoed in the harbor, and values of our American youth. I have in- OF ENERGY SPENCER ABRAHAM Thomas was thrust into a position to save serted in the RECORD a speech from the June TO PERMANENTLY CLOSE THE men’s lives. He spent the next several days 2001 eighth grade graduation address of Mi- FAST FLUX TEST FACILITY ON assisting the wounded with their battle injuries chael Robert Glennon. He was the President THE HANFORD NUCLEAR RES- and doing what he could to ease the shock of the Student Council at Sheridan School in ERVATION NEAR RICHLAND, WA and pain of U.S. sailors. Washington, DC. As a result of the attack that day, twelve Michael is currently a ninth grader at the HON. DAVID WU U.S. ships were sunk, beached, or destroyed Hotchkiss School, Lakeville, Connecticut. OF OREGON by Japanese action. The U.S. armed forces Parents, Grandparents, Faculty, Students, IN THE HOUSE OF REPRESENTATIVES suffered heavy casualties losing 2,400 men to Special Guests, and Classmates, welcome enemy action and 1,100 casualties as a result and thank you for sharing our special day. I Wednesday, December 19, 2001 of enemy fire. This nation was given no choice am honored to be here representing my fel- Mr. WU. Mr. Speaker, I rise today to ap- but to declare war on Japan and thus enter low graduates to discuss the Sheridan experi- ence and everything that the Sheridan com- plaud Secretary Abraham’s decision to perma- World War II. Thomas, like many other serv- munity has meant to us. nently close the Fast Flux Test Facility (FFTF) icemen and women, would know the horrors First, however, we must be thankful for located on the Hanford Nuclear Reservation of war for the next four years. the love, efforts, and wisdom of our parents near Richland, Washington. Mr. Speaker, as we remember the 60th an- who have made possible the privilege of a The FFTF is a 400-megawatt sodium cooled niversary of Pearl Harbor let us also remem- Sheridan education. Thank you parents. nuclear reactor that operated from 1982 to ber the recent victims of our nation’s quest for What do we mean by the Sheridan experi- 1992 to test advanced fuels and materials in freedom. The attacks on this country Sep- ence? Sheridan can not be defined simply by what happens on the sports field or in the support of the national Liquid Metal Fast tember 11 again have plunged us into war. As classroom. It is after school, during recess, Breeder Reactor Program. In 1992, this use we fight to redeem our fallen friends let us and during lunch, when students and teach- was terminated. The FFTF then became a fa- also pay tribute to the soldiers throughout our ers interact on a more personal level. That is cility without a mission. When efforts to iden- nation’s history who gave their lives to protect what makes Sheridan so unique and contrib- tify a long-term mission for the FFTF were un- our way of life. It’s dedicated men like Thomas

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00032 Fmt 0666 Sfmt 9920 E:\CR\FM\A20DE8.006 pfrm07 PsN: E20PT1 December 20, 2001 CONGRESSIONAL RECORD — Extensions of Remarks E2371 Moore to whom we should pay homage and friend Ginny Wood then had the opportunity to one out of 270 programs evaluated nation- thank for his service to this nation. fly surplus planes to Alaska. They landed in wide. This is a first for them, an achievement f Fairbanks on January 1, 1947 with tempera- for a program smaller than many of its coun- tures at minus 50 degrees and never looked terparts. This recognition makes our island PAYING TRIBUTE TO WESTERN back. very proud and is testament to the hard work STATE COLLEGE CROSS-COUN- Celia, Ginny Wood, and Ginny’s husband of the cadets, cadre, and recruiters of the Tri- TRY TEAMS Woody built Denali Camp in 1951 on the edge ton Warrior Battalion. of then-Mt. McKinley National Park. Their vi- Since the founding of UOG’s ROTC pro- HON. SCOTT McINNIS sion for an ecologically friendly, conservation- gram in 1979, students have been well trained OF COLORADO education, backcountry camp survives today to become commissioned officers in both the IN THE HOUSE OF REPRESENTATIVES under the management of Wally and Geri active and reserve components of the U.S. Cole, who purchased the tourism accommoda- Army. The program has commissioned some Thursday, December 20, 2001 tion from Celia and Ginny in 1975. In 1960, of Guam’s finest men and women as officers Mr. McINNIS. Mr. Speaker, I would like to Celia and Ginny, with a few others in Fair- and produced some of the Army’s most ex- take this opportunity to recognize an out- banks, founded the Alaska Conservation Soci- ceptional leaders. In its 22 years, the program standing group of dedicated young men and ety, the first statewide conservation organiza- at UOG has commissioned over 240 Second women from Western State College in Gunni- tion run entirely by volunteers. The Alaska Lieutenants, and this year they are expected son, Colorado. The group is the men’s and Conservation Society was the precursor to to- to commission 20 more. women’s cross country teams, who for the day’s three regional organizations, the North- The U.S. Army Cadet Command, the super- second year in a row brought back to their ern Alaska Environmental Center, the South- vising headquarters for all ROTC battalions school a national championship. I would like to east Alaska Conservation Council, and the nationwide, annually assesses ROTC pro- commend them on their efforts and mention Alaska Center for the Environment, as well as grams. A multitude of criteria is used to deter- several of their accomplishments. the Alaska Conservation Foundation, another mine performance ranking. While enrollment, The teams this year won the national title at organization Celia helped to establish and on retention, basic camp attendance, commission Slippery Rock State University in Pennsyl- whose board she served for two decades. In and contract accomplishment are all part of vania. By taking the title this year and in 2000, the latter part of the 1970s, Celia served as the criteria, the most important factors contrib- Western State has made cross-country his- executive director of the Wilderness Society, uting to the evaluation are commission and tory. It is only the second time in NCAA I, II, and in 1991 the Sierra Club awarded Celia its contract accomplishments. III Championships that both a men’s and wom- highest achievement award, the John Muir Commission accomplishment is based on en’s team from the same school have taken Award. the number of cadets commissioned in the both titles. Their latest achievement cul- She also fought, literally until her death, to course of a year. This year, UOG’s ROTC pro- minates a successful year for all the athletes preserve the Arctic National Wildlife Refuge. I gram received a commission mission of ten, on the team. All of this was accomplished had the opportunity to visit this beautiful land however, they surpassed that number by com- under the guidance and leadership of their in July, and while there I witnessed an explo- missioning 20 officers. Next year, they have coach Duane Vandenbusche, who for his ef- sion taking place on the coastal plane of the been tasked to commission 12 and it is ex- forts was awarded Coach of the Year at a Arctic—an explosion of life. In fifty years of ex- pected that they will again exceed the tasked conference, regional, and national level. ploring the back country of America, from Yel- commission requirement by doubling the num- Mr. Speaker, I am always proud to recog- lowstone to the Appalachian Trail, I have ber of commissioned officers. In 2003, it is an- nize the accomplishments of those who have never seen such activity—birds singing, car- ticipated that the commission accomplishment dedicated their time and efforts to achieving a ibou calving, and tundra flowers blooming. It will exceed the requirements three times over. difficult goal. The Mountaineers of Western was hard to take a step in the soggy, tussock- UOG’s ROTC program’s contract accom- State College have made great sacrifices in filled tundra without scaring up a well-camou- plishment is the ability of the program to meet their lives and have done a wonderful job rep- flaged ptarmigan, stepping on some happy its fiscal year missions and goals for con- resenting the College and the State of Colo- Mountain Aven blossom, or spying a bunch of tracting cadets into the advanced course for rado. Their championship is well deserved and caribou heading for their traditional calving juniors advancing toward senior status. While I look forward to watching their next season grounds. The Arctic Refuge represents the the contract mission for fiscal year 2002 is 20 with pride and admiration. largest intact ecosystem in America, a unique cadets, UOG’s ROTC program has exceeded expectations and contracted 34 cadets. Pres- f expanse where industrialization has not bro- ken one link in the chain of life. ently, UOG’s ROTC program has 111 cadets TRIBUTE TO CELIA HUNTER Celia Hunter was an inspiration to a genera- enrolled, however they continue to witness an tion of wilderness enthusiasts and others who annual enrollment increase. During these difficult and trying times, the HON. JAY INSLEE wished to make the world a better place. In a men and women of the Triton Warrior Bat- OF WASHINGTON 1986 interview she said, ‘‘Each one of us has talion are to be commended. Together, they IN THE HOUSE OF REPRESENTATIVES a responsibility to take care of the part of the are an excellent example of the leadership, world we live in.’’ Celia wanted to live in a Thursday, December 20, 2001 determination and courage needed to safe- world where there were wild places, peace guard our freedoms and our democracy. My Mr. INSLEE. Mr. Speaker, I rise today to and quiet, and compassion for her fellow man congratulations to all the cadets and instruc- pay tribute to a great conservationist, Celia and woman. In this vision, she led by exam- tors of UOG’s ROTC program. May they con- Hunter, who died December 1 at the age of ple, and she will be sorely missed, but never tinue to achieve success in the years to come. 82. We need to acknowledge heroes of the forgotten by those who worked with her, lived conservation community like Celia so that fu- near her, and met her. f ture generations may see and know what f ON THE INTRODUCTION OF LEGIS- made this country the great nation that it is LATION TO PREVENT TEEN today, what shaped us as a freedom-loving CONGRATULATING GUAM’S ROTC PREGNANCY people, and what made us kind and consid- PROGRAM erate stewards of the land. HON. JANE HARMAN Though she was born and raised in Arling- HON. ROBERT A. UNDERWOOD ton, Washington, Celia’s greatest contributions OF CALIFORNIA OF GUAM IN THE HOUSE OF REPRESENTATIVES came in protecting our last frontier, Alaska. IN THE HOUSE OF REPRESENTATIVES Our national parks, our wildlife refuges, and Thursday, December 20, 2001 Thursday, December 20, 2001 our national forests in Alaska have come to be Ms. HARMAN. Mr. Speaker, today, with my heirlooms that we may pass on to our children Mr. UNDERWOOD. Mr. Speaker, it is an colleague NANCY PELOSI, I am pleased to in- and their children in large part because of honor to congratulate the University of Guam’s troduce legislation today to strengthen our na- Celia Hunter. (UOG) Army Reserve Officer Training Corps tion’s commitment to preventing teen preg- Celia was a member of the Women’s Air (ROTC) program upon their distinction as the nancy. Force Service Pilots, flying fighter planes from best in the nation for mission accomplishment The United States has the highest rates of factories where they were built to airfields and and quality. UOG’s ROTC program, the Triton teen pregnancy and births in the western in- ports for use in World War II. She and lifelong Warrior Battalion, was recently ranked number dustrialized world. Nearly four in 10 young

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00033 Fmt 0666 Sfmt 9920 E:\CR\FM\K20DE8.001 pfrm07 PsN: E20PT1 E2372 CONGRESSIONAL RECORD — Extensions of Remarks December 20, 2001 women become pregnant at least once before The present system works well and when Therefore, I would discourage my colleagues they reach the age of 20—one million a year. someone comes up with an idea to change to from supporting this bill. This is a problem that has a devastating im- system, we must be very mindful of the maxim f pact on California as a whole (which has the ‘‘Do No Harm.’’ One such proposal to alter this second worst teen pregnancy rate in the na- system is called the Home Ownership Expan- TRIBUTE TO MR. WILLIAM (BILL) tion) and Hispanic teenagers in particular, who sion and Opportunities Act, H.R. 3206 or HEVERT have the highest rates of teen pregnancy of Ginnie Mae ‘‘Choice.’’ For the first time, this any ethnic group. The cost to the United legislation would place the full faith and credit HON. ELIOT L. ENGEL States in health care and education alone is at guarantee behind conventional mortgage OF NEW YORK least $7 billion annually, and the human cost loans. IN THE HOUSE OF REPRESENTATIVES Ginnie Mae ‘‘Choice’’ would—in effect—cre- in dreams deferred and children with limited Thursday, December 20, 2001 opportunities is immeasurable. Reducing un- ate yet another housing GSE, but with the dif- wanted pregnancies also reduces the number ference being that this one would have an ex- Mr. ENGEL. Mr. Speaker, I rise today in of abortions. plicit government guarantee behind all that it order to honor William (Bill) Hevert on the oc- We must act now to build on the success of does, unlike the current housing GSEs such casion of his retirement after 28 years of dedi- existing programs that have helped reduce as Fannie Mae, Freddie Mac, and the Federal cated service to Bessemer Trust Ltd. teen pregnancy rates nationwide so that we Home Loan Banks. Born in the Bronx on September 22, 1943, may ensure young women and men have the The Ginnie Mae Choice proposal would au- Bill graduated from Dewitt Clinton High School information and confidence they need to make thorize Ginnie Mae (GNMA) to guarantee se- in June 1961. After graduating with a BA from wise choices about their sexual behavior. curities backed by mortgages with loan-to- City College of New York-Baruch School in The approach of our legislation is very value ratios of over 80 percent. Interest and 1965, Bill took a job with the Internal Revenue straightforward: fund programs that work. principle payments on these mortgages would Service (IRS). In 1966 he joined the Medical Over the past decade, a wide variety of teen be insured first by partial private mortgage in- Services Corps at Fort Meade in Laurel, Mary- pregnancy prevention programs have shown surance (PMI), second by insurance issued by land where he received the Army Commenda- dramatic results in delaying teenagers’ sexual the United States Department of Housing and tion Medal for service through January 1968 activity, promoting the safe use of contracep- Urban Development (HUD), and lastly by the as a First Lieutenant. After finishing his serv- tives, and reducing teen pregnancy. These GNMA guarantee. ice in the U.S. Armed Forces, Bill went back programs don’t fit a particular model: some Private mortgage insurers would assume a to the IRS for two years before he joined SD provide comprehensive sex and HIV edu- minimum first loss position that varies from 12 Leidersforf as an accountant. After two years cation, some provide information on and ac- to 35 percent of outstanding principal and in- at SD Leidersforf, Bill joined Bessemer. cess to contraception, some provide economic terest depending on the loan-to-value ratio, For most of his life, Bill lived in the Bronx or service opportunities to youth. Some use and the federal government (HUD and GNMA where he was respected and admired by the media campaigns, some intervention and combined) would assume all residual risk. In community around him. His dedication has counseling, and some youth development pro- general, loans potentially qualifying for the touched many others, including former Presi- grams. GNMA Choice program are conforming loans dent George H. W. Bush and the former First Successful education programs do, how- that meet the PMI requirements. Lady Barbara Bush, who had the pleasure of ever, all share a common feature: they deliver I would like to thank my colleague, Rep- working with Bill in the preparation of their the message that abstaining from sexual activ- resentative MARGE ROUKEMA (RÐNJ) for intro- own tax returns. Lewis Goldstein, a friend of ity is the only 100 percent effective way to ducing the bill. We share the common goal of Bill for over forty years, fondly recalls the prevent teen pregnancy, but recognizing that wanting to increase homeownership, but upon many holiday celebrations they shared and the teens will not always abstain from sex, also reflection, I am not certain that this bill will many trips to places such as Palisades provide accurate information on contraception achieve the stated goal. In contrast to Fannie Amusement Park and the Bronx Zoo. He also and other means to prevent pregnancy. Mae and Freddie Mac, this legislation would recalls many summers spent at Rockaway The grant program authorized by the bill we impose no housing goals on Ginnie Mae. If where Bill and his family rented a bungalow introduce today targets new funding at high- the goal of the legislation is to increase home- for many years. risk communities and groups, and allows a ownership among low-income families, it After retiring from Bessemer, Bill plans on wide range of organizations—from local coali- would seem logical to have some kind of spending time in New York as well as Florida. tions to State agencies—to apply for funds. housing targets or loan amounts. Yet, this leg- He also plans on traveling extensively with his This bill represents an effective and proven islation is silent in that regard. partner, Larry Bartelsen, who is also retiring. way to move forward on teen pregnancy pre- As a practical matter, I remain unconvinced Bill and Larry hope to use their new free time vention. The program will fund diverse teen an agency within HUD has the capacity to to enjoy the things they love, including the pregnancy prevention programs, so long as manage a mortgage volume of some $30 bil- New York Philharmonic, the Metropolitan and they are based on methods and programs that lion per year. Granted, private MIs would pick New York City Operas, theater and dining out. work. up 12 to 35 percent of losses, but the pros- I would like to congratulate both Bill and Larry This legislation is a win-win deal for teens, pect of this agency being able to manage both and wish them all the best in their retirement. their families, and their communities across credit and interest rate risk on these mort- f the nation, and I urge all of my colleague to gages is somewhat dubious. HUD’s manage- support it. ment track record in this regard is spotty at HONORING BOB KELSEY f best. H.R. 3206 contemplates no Risk Based HON. SCOTT McINNIS RECOGNIZING THE GINNIE MAE Capital Standards (RBCS). Fannie Mae and OF COLORADO CHOICE PROPOSAL Freddie Mac must adhere to strict RBCS im- IN THE HOUSE OF REPRESENTATIVES posed from the 1992 legislation that revised HON. BOB BARR their charters. Both companies are now doing Thursday, December 20, 2001 OF GEORGIA business under the RSBCSs from the 1992 Mr. MCINNIS. Mr. Speaker, I would like to IN THE HOUSE OF REPRESENTATIVES legislation. Indeed, under the Risk Based Cap- recognize the selfless contributions of one in- ital Standards applied to Fannie Mae and dividual in the Grand Junction community of Thursday, December 20, 2001 Freddie Mac, GNMA would experience losses Colorado who has rallied the support of others Mr. BARR of Georgia. Mr. Speaker, as a in the range of $9.35 billion under severe for a noble cause. In 1997, Bob Kelsey found- member of Congress, and a member of the Fi- stressful conditions to $1.86 billion under less ed, and has since directed, the Catholic Out- nancial Services Committee, I share the goal stressful conditions—according to an analysis reach Day Center. of increasing homeownership opportunities for by Pricewaterhouse Coopers. Mr. Kelsey was inspired by the words of a American families. Our government and the In conclusion, it seems H.R. 3206 is uncer- homeless man who was trying to find work Congress have made policy choices to sup- tain to achieve its stated goal of increasing one day. With the help of Catholic Outreach port this goal. These policy choices have paid homeownership significantly, while at the and an initial grant from the city, his vision has off for our nation and for American families same using the explicit backing of the United become a reality. The Catholic Outreach Day with more than 67 percent of American fami- States Government to potentially cause losses Center performs basic services for homeless lies owning their own homes today. of several billion dollars to the taxpayers. people and provides opportunities for them to

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00034 Fmt 0666 Sfmt 9920 E:\CR\FM\A20DE8.010 pfrm07 PsN: E20PT1 December 20, 2001 CONGRESSIONAL RECORD — Extensions of Remarks E2373 find employment. Not only does it give them a Chiefs’ Association, the California Fire Chiefs’ HUMAN RIGHTS IN CENTRAL ASIA place to shower and do their laundry, but it Association, the National Fire Protection Asso- also aids in giving those less fortunate the ciation, and the Special Fire Districts’ Associa- HON. CHRISTOPHER H. SMITH tools needed to look for employment. These tion of California. OF NEW JERSEY simple services greatly increase the odds of An active participant in community service IN THE HOUSE OF REPRESENTATIVES getting a job for those with very few re- and community affairs, Chief Sporleder will be Thursday, December 20, 2001 sources. sorely missed by the Fire Department and the Bob Kelsey has been the director of the County. I cannot thank Chief Sporleder Mr. SMITH of New Jersey. Mr. Speaker, on Friday, December 21, Kazakhstan’s President Catholic Outreach Day Center since its cre- enough for his years of service to the people Nursultan Nazarbaev will be meeting with ation in 1997, but at the age of seventy he is of Santa Clara County, and wish him nothing President Bush. Sometime in January, passing his responsibilities on to another. In but the best in the future. He is a leader as Uzbekistan’s President Islam Karimov is likely the four years of the day center’s existence, well as someone I am proud to call my friend. Bob, with the help of over 40 volunteers, has to arrive for his visit, The invitations to these Heads of State obviously reflect the overriding helped to provide more than one thousand f jobs to the less fortunate members of the U.S. priority of fighting international terrorism community. IN MEMORY OF SUSAN M. FAGAN and the corresponding emphasis on the stra- Mr. Speaker, Bob Kelsey has dedicated tegic importance of Central Asia, which until many resources and provided many opportuni- HON. DAVE WELDON September 11 had been known largely as a ties to those members of his community who resource-rich, repressive backwater. OF FLORIDA As Co-Chairman of the Commission on Se- are less privileged. The Catholic Outreach Day curity and Cooperation in Europe, I have Center has become a very valuable asset for IN THE HOUSE OF REPRESENTATIVES chaired a series of hearings in recent years fo- Thursday, December 20, 2001 many people. Mr. Kelsey has touched the cused on human rights and democratization in lives of so many and will be greatly missed, Mr. WELDON of Florida. Mr. Speaker, I rise the Central Asian region. but through the ongoing support of his com- to commemorate the life and service of Susan Clearly, we need the cooperation of many munity his vision will survive to make a dif- M. Fagan, a Peace Corps volunteer, who lost countries, including Afghanistan’s Central ference. Thanks Bob for your efforts on behalf her life after serving in Ghana in November. At Asian neighbors, in this undertaking. But we of others. the time of her death, Susan was visiting her should not forget, as we conduct our multi- f family in Ohio. The cause of death is believed dimensional campaigns, two vitally important TRIBUTE TO CHIEF DOUGLAS G. to be malaria. points: first, Central Asian leaders need the SPORLEDER Mrs. Fagan, of Barefoot Bay, Florida, had support of the West at least as much as we served in the Peace Corps from November 29, need them. 1999, to November 2, 2001, in Akwida, Unfortunately, Central Asian presidents HON. ZOE LOFGREN Ghana, where she started tourist management seem to have concluded that they are indis- OF CALIFORNIA committees so that the villagers could benefit pensable and that we owe them for allowing IN THE HOUSE OF REPRESENTATIVES directly from the burgeoning tourist industry in us to use their territory and bases in this fight Thursday, December 20, 2001 Ghana. Before completing her service, Susan against the terrorists and those who harbor them. I hope Washington does not share this Ms. LOFGREN. Mr. Speaker, I rise to com- had developed and presented to the Ghana Tourist Board a longterm plan for promoting misapprehension. By striking against the rad- mend Chief Douglas G. Sporleder on his re- ical Islamic threat to their respective security tirement from the Santa Clara County Fire De- tourism in the Akwida region. Thanks to Su- san’s hard work, that plan is being utilized and that of the entire region, we have per- partment. Chief Sporleder is retiring after 21 formed a huge service for Central Asian lead- years of service to the people of Santa Clara today. Susan is survived by her father, William Wil- ers. County. Second, one of the main lessons of Sep- son, her stepmother, Linda Wilson, her sisters, Santa Clara County Fire Department serv- tember 11 and its aftermath is that repression Debra Moore and Shelby Wilson, and step- ices an area of 137 square miles and a popu- of political opposition and alternative view- brothers, Terry and Brandan Zastrow. A me- lation of 259,000, and consists of 270 paid points is a key cause of terrorism. Secretary of morial service was conducted in East Liver- personnel and 40 volunteers operating a re- State Colin Powell and National Security Ad- pool, Ohio, on Thursday, December 6, 2001. gional network of sixteen fire stations with a viser Condoleezza Rice have declared that the A second memorial service was held in Florida $32 million budget. war on terrorism will not keep the United Chief Sporleder is third-generation fire serv- on December 13, 2001. Susan is also sur- States from supporting human rights. I am ice. His father and grandfather were also chief vived by her deceased husband’s family, fa- hopeful the administration means what they officers in the fire services. Upon his retire- ther and mother-in-law, Raymond and Dona have said. But given the sudden warming of ment, Douglas Sporleder will have been fire Fagan, brother-in-law, William Fagan, and sis- relations between Washington and Central chief for over 21 years, nearly half the time ter-in-law, Dori Ziomek. Asian leaders, I share the concerns voiced in that the Santa Clara County Fire Department Susan embodied the best traditions of many editorials and op-eds that the United has been in existence. Peace Corps Volunteers, and her life and States will downplay human rights in favor of Starting as a volunteer firefighter in 1963, work will be deeply missed by all who knew cultivating ties with those in power. More Chief Sporleder attained the rank of chief in and worked with her. Our thoughts and pray- broadly, I fear we will fall into an old pattern 1980 after progressing through the ranks of ers are with her family and friends. In memory of backing repressive regimes and then being firefighter, captain, training chief and assistant of Susan Fagan, the Peace Corps flag was linked with them in the minds and hearts of chief. He is also the Santa Clara County Fire flown at half-staff on December 6, 2001. their long-suffering peoples. Marshal and the Local Mutual Aid Fire and Susan helped the people of interested coun- In that connection, Mr. Speaker, on the eve Rescue Coordinator, and a member of the tries and helped promote a better under- of President Nazarbaev’s meeting with Presi- Governor’s Special Arson Task Force and the standing of Americans on the part of the peo- dent Bush and in anticipation of the expected California Fire and Rescue Service/ ple she served. Susan always saw the humor visit by President Karimov, as well as possible FIRESCOPE Board of Directors. in a situation and never allowed the frustrating visits by other Central Asian leaders, I want to Chief Sporleder’s other professional accom- things about living in a developing country get highlight some of the most glaring human plishments include: speaking at the National her down. She considered herself very lucky rights problems in these countries. Fire Academy and the International Associa- to have had such an opportunity. To begin with, corruption is rampant tion of Fire Chiefs conference; certificates of ‘‘I am very proud to say that Susan’s life throughout the region, and we should keep appreciation from Santa Clara County, the embodied the Peace Corps goals,’’ said this in mind as the administration requests American Heart Association; and the recipient Ghana Country Director Leonard Floyd. We more money for assistance to Central Asian of the American Legion Certificate of Com- will all miss her—her family, friends, the regimes. Kazakhstan’s President Nazarbaev mendation for Heroism. He has served as Peace Corps staff, the Peace Corps Volun- and some of his closest associates are under president of the Santa Clara County Fire teers and all of the people who considered her investigation by the U.S. Department of Jus- Chiefs’ Association, and is a member of the a friend and family in her Ghana home of tice for massive corruption. Not surprisingly, to International Association of Fire Chiefs, the Akwida.’’ Indeed, her example will continue to keep any information about high-level mis- IAFC Metro Chiefs Division, the Western Fire inspire us. deeds from the public—most of which lives in

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00035 Fmt 0666 Sfmt 9920 E:\CR\FM\A20DE8.014 pfrm07 PsN: E20PT1 E2374 CONGRESSIONAL RECORD — Extensions of Remarks December 20, 2001 dire poverty—the Nazarbaev regime has Uzbek Government can harass and imprison oners. I hope that the Government of cracked down hard on the media. Family or individuals for attending unregistered religious Turkmenistan will immediately and uncondi- business associates of President Nazarbaev meetings, as well as deny property purchases tionally release them, as well as all other pris- control most media outlets in the country, in- and formal education opportunities. As you oners of conscience. cluding printing houses which often refuse to can see, Mr. Speaker, Uzbekistan’s record on Rounding out the Central Asian countries, print opposition or independent newspapers. human rights, democratization and religious Tajikistan also presents human rights con- Newspapers or broadcasters that try to cover freedom is unacceptable. cerns. A report has recently emerged con- taboo subjects are harassed by the govern- I am not aware that Kyrgyzstan’s President cerning the government’s religious affairs ment and editorial offices have had their prem- Askar Akaev has been invited to Washington, agency in the southern Khatlon region, which ises raided. The government also controls the but I would not be too surprised to learn of an borders Afghanistan. According to reliable two main Internet service providers and regu- impending visit. Once the most democratic sources, a memorandum from the religious af- larly blocks the web site of the Information An- state in Central Asia, Kyrgyzstan has gone the fairs agency expressed concern about ‘‘in- alytical Center Eurasia, which is sponsored by way of its neighbors, with rigged elections, creased activity’’ by Christian churches in the Kazakhstan’s main opposition party. media crackdowns and repression of opposi- region, calling for them to be placed under In addition, libel remains a criminal offense tion parties. At a Helsinki Commission hearing ‘‘the most stringent control.’’ Tajik Christians in Kazakhstan. Despite a growing international I chaired last week on democratization and fear that this statement of intolerance could be consensus that people should not be jailed for human rights in Kyrgyzstan, we heard from a precursor to persecution. Keston News what they say or write, President Nazarbaev the wife of Felix Kulov, Kyrgyzstan’s leading Service reported that law enforcement officials on May 3 ratified an amendment to the Media opposition figure, who has been behind bars have already begun visiting registered church- Law that increases the legal liability of editors since January 2001. Amnesty International es and are trying to find formal grounds to and publishers. Furthermore, a new draft reli- and many other human rights groups consider close them down. Additionally, city authorities gion law was presented to the Kazakh par- him a political prisoner, jailed because he in the capital Dushanbe have cracked down liament at the end of November without public dared to try to run against President Akaev. on unregistered mosques. consultation. If passed, it would seriously cur- Almost all opposition and independent news- Mr. Speaker, as the world focuses on Cen- tail the ability of individuals and groups to papers which have sought to expose high- tral Asia states with unprecedented energy, I practice their religious faith freely. level corruption have been sued into bank- wanted to bring these serious deficiencies in Uzbekistan is a wholesale violator of human ruptcy. their commitment to human rights and democ- rights. President Karimov allows no opposition With respect to the proposed religion law racy to the attention of my colleagues. All parties, permits no independent media, and the Kyrgyz Parliament is drafting, which would these countries joined the Organization for Se- has refused even to register independent repeal the current law, significant concerns curity and Cooperation in Europe soon after human rights monitoring groups. Elections in exist. If the draft law were enacted in its cur- their independence from the Soviet Union a Uzbekistan have been a farce and the Organi- rent emanation, it would categorize and pro- decade ago. By becoming OSCE participating zation for Security and Cooperation in Europe hibit groups based on beliefs alone, as well as States, they agreed without reservation to (OSCE) rightly refused to observe the last allow arbitrary decisions in registering religious comply with the Helsinki Final Act and all sub- presidential ‘‘contest,’’ in which Karimov’s groups due to the vague provisions of the sequent agreements. These documents cover ‘‘rival’’ proclaimed that he was planning to vote draft law. I encourage President Akaev to sup- a wide range of human dimension issues, in- for the incumbent. port a law with strong protections for religious cluding clear language on the human right of In one respect, however, Karimov is not freedom. Implementing the modification sug- religious freedom and the right of the indi- lacking—brazen gall. Last week, on the eve of gested by the OSCE Advisory Panel of Ex- vidual to profess and practice religion or belief. Secretary Powell’s arrival in Tashkent, Uzbek perts on Religious Freedom would ensure that Unfortunately, as I have highlighted, these authorities announced plans to hold a ref- the draft religion law meets Kyrgyzstan’s countries are failing in their commitment to erendum next month on extending Karimov’s OSCE commitments. promote and support human rights, and over- tenure in office from five years to seven. Mr. Speaker, this morning I had a meeting all trends in the region are very disturbing. Some members of the tightly controlled par- with Ambassador Meret Orazov of The goals of fighting terrorism and stead- liament urged that he be made ‘‘president for Turkmenistan and personally raised a number fastly supporting human rights are not dichoto- life.’’ The timing of the announcement could of specific human rights cases. Turkmenistan, mous. It is my hope that the U.S. Government have had only one purpose: to embarrass our the most repressive state in the OSCE space, will make issues of human rights and religious Secretary of State and to show the United resembles North Korea: while the people go freedom paramount in bilateral discussions States that Islam Karimov will not be cowed hungry, megalomaniac President Saparmurat and public statements concerning the ongoing by OSCE commitments on democracy and the Niyazov builds himself palaces and monu- efforts against terrorism. In this context, the need to hold free and fair elections. ments, and is the object of a Stalin-style cult considerable body of OSCE commitments on I am also greatly alarmed by the Uzbek of personality. No opposition of any kind is al- democracy, human rights and the rule of law Government’s imprisonment of thousands of lowed, and anyone who dares to express a should serve as our common standard for our Muslims, allegedly for participating in extremist view counter to Niyazov is arrested. relations with these countries. Islamic groups, but who are probably ‘‘guilty’’ Turkmenistan is the only country in the OSCE f of the ‘‘crime’’ of attending non-government region where places of worship have been de- approved mosques. The number of people stroyed on government orders—in November COLONEL KARL ‘‘KASEY’’ WARNER jailed on such dubious grounds is estimated to 1999, the authorities bulldozed a Seventh-Day RETIREMENT be between 5,000 and 10,000, according to Adventist Church. Since then, Niyazov has im- Uzbek and international human rights organi- plemented his plans to provide a virtual bible HON. SHELLEY MOORE CAPITO zations. While I do not dismiss Uzbek govern- for his benighted countrymen; apparently, he OF WEST VIRGINIA ment claims about the seriousness of the reli- intends to become their spiritual as well as IN THE HOUSE OF REPRESENTATIVES gion-based insurgency, I cannot condone im- secular guide and president for life. prisonment of people based on mere sus- Turkmenistan has the worst record on reli- Thursday, December 20, 2001 picion of religious piety. As U.S. Government gious freedom in the entire 55-nation OSCE. Mrs. CAPITO. Mr. Speaker, I rise today to officials have been arguing for years, this pol- The systematic abuses that occur almost honor Colonel Karl ‘‘Kasey’’ Warner of the icy of the Uzbek Government also seems weekly are an abomination to the internation- United States Special Operations Command counterproductive to its stated goal of elimi- ally recognized values which undergird the who is retiring from the United States Army nating terrorists. Casting the net too broadly OSCE. Recent actions by Turkmen security after 27 years of active duty. and jailing innocent people will only inflame in- agents against religious groups, including har- Colonel Warner has served this great coun- dividuals never affiliated with any terrorist cell. assment, torture and detention, represent a try with dedication and honor for over 27 years In addition, Uzbekistan has not only violated catastrophic failure by Turkmenistan to uphold in uniform, but his service to his country has individual rights, but has also implemented its human rights commitments as a partici- not ended. He will be taking on the duties of policies that affect religious groups. For exam- pating OSCE State. In addition, last January, the United States Attorney for the Southern ple, the Uzbek Government has consistently Mukhamed Aimuradov, who has been in pris- District of West Virginia for the term of four used its religion law to frustrate the ability of on since 1995, and Baptist pastor Shageldy years. religious groups to register, placing them in a Atakov, imprisoned since 1999, were not in- Colonel Warner began his military career as ‘‘catch-22’’. By inhibiting registration, the cluded in an amnesty which freed many pris- a cadet at the United States Military Academy

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00036 Fmt 0666 Sfmt 9920 E:\CR\FM\A20DE8.017 pfrm07 PsN: E20PT1 December 20, 2001 CONGRESSIONAL RECORD — Extensions of Remarks E2375 at West Point. It was there that he graduated TRIBUTE TO THE NEW YORK CITY and Finance, which is located next door to and was commissioned a Second Lieutenant PUBLIC SCHOOLS COMMUNITY Leadership, and their Principal, Dr. Patrick in 1974. Colonel Warner’s career epitomizes Burke. Two secretaries from Economics, Kath- leadership and selfless service. He has served HON. CAROLYN B. MALONEY leen Gilson and Joan Truteneff, wanted to his country well both as a line officer in Field OF NEW YORK stay and answer calls from frantic parents but Burke told them ‘‘No way, you have to come Artillery and later as a Judge Advocate. IN THE HOUSE OF REPRESENTATIVES with me.’’ Colonel Warner attended West Virginia Uni- Thursday, December 20, 2001 Right as the students got to Rector Street versity School of Law and graduated in 1980. Mrs. MALONEY of New York. Mr. Speaker, the first building collapsed and a dust ball, full He has served primarily as a trial litigator and I rise today to pay special tribute and to recog- of debris, began to chase them. One teacher has been an instructor of criminal law at the nize the courage and professionalism of the shouted to her kids, ‘‘Run! Now you can run!’’ Army Judge Advocate General School. His ca- New York City Public Schools community dur- and they hopped over benches as many raced reer has taken him from the parade grounds ing the attack on September 11, 2001. for Battery Park at the tip of lower Manhattan while others headed north and east. Once in of West Point to foreign lands and harsh living I know that none of us will ever forget where Battery Park, the students hopped on ferries conditions—he was the joint task force and we were and what we were doing when the attacks on the World Trade Center occurred. to Jersey City and Staten Island. Nearly 100 multinational force staff judge advocate at For the New York City Public Schools commu- of the students, those who could not make it Port-au-Prince, Haiti in 1994Ð1995. nity, the attacks were not something they home that night, were fed and spent the night In Haiti, he designed a procedure for detain- watched on television, they were in the middle on cots in Curtis High School on Staten Is- ing Haitians—as a matter of policy they deter- of the mayhem. In the immediate aftermath land, accompanied by their teachers. Still oth- mined that detainees should be afforded the eight schools which were located in the ‘‘fro- ers were housed and fed by parishioners of a same treatment accorded to detained persons zen zone’’ were closed, displacing nearly Jersey City Catholic Church. John O’Sullivan, an earth science teacher at under the 1949 Geneva Prisoner of War provi- 6,000 students, a number which is more than Economic and Finance, said that when the 21⁄2 times the average school district in the sions (food shelter medical care)—the treat- first tower fell, he thought they were finished. ment was so good by Haitian standards that U.S. Not only did the faculty and staff in these af- ‘‘It was an optical illusion, but it looked like it often people would ‘‘confess’’ in the hopes of was falling on us,’’ said the teacher. ‘‘I’ll never being detained. However by all accounts the fected schools react with extraordinary calm, grace and bravery to evacuate their schools forget the look on the face of one of my stu- Joint Detention Facility was an unqualified and to ensure that every child in their care dents from last year. The look of terror. It was success. Colonel Warner also arranged for the was safe and accounted for, the students and like that picture of the little girl running from appointment of four judge advocates to be au- staff from these heavily impacted schools the napalm attack in Vietnam,’’ he said. Other thorized to serve as a one-member foreign worked together in spite of the fact that over teachers walked students home over the Man- claims commissions and the appointment of 1,500 students and 800 staff members lost a hattan Bridge to Brooklyn. Mr. O’Sullivan and three more judge advocates to serve as a family member or loved one as a result of the several of his colleagues walked north with a three-member commission. disaster. Consider these snapshots from one group of students and then caught a bus to O’Sullivan’s apartment. Once there, the teach- Prior to becoming the prestigious Special of the most horrific days in our history. Jordan Schiele, ajunior at Stuyvesant High ers fed pizza and soda to the students and put Operations Judge Advocate, Colonel Warner on a video until their parents could pick them was the deputy legal counsel to the Chairman School, retold his experience in a recent arti- cle in The Washington Post. Jordan was in up. of the Joint Chiefs of Staff. In whatever chal- What make Principal Dolch’s heroism even band class when the first plane hit Tower One. lenge he was tasked with, he excelled and more remarkable is that she performed all of He saw the second hit, in the middle of a constantly personified the words General these acts of bravery while knowing that her class debate on the best form of government. Douglas MacArthur made famous and synony- sister Wendy Wakeford, who worked for an in- From the window, he watched what he first vestment banking firm on the 100th floor of 1 mous with West Point: ‘‘Duty, Honor, Coun- thought were fax machines and later realized try.’’ World Trade Center, was more than likely a were people falling from the Tower’s top victim of the attack. Her sister remains miss- Colonel Warner’s military decorations in- floors. As Tower One collapsed, the lights in ing. ‘‘She was in the first building that was hit. clude the Defense Superior Service Medal, his classroom flickered, the whole Stuyvesant I think that she was caught in the fireball. We Legion of Merit, Defense Meritorious Service building rumbled, and Jordan fled with his haven’t heard from her,’’ Dolch said shortly Medal with oak leaf cluster, Meritorious Serv- classmates out of the building and began run- after the attack. ‘‘I prayed she was safe, but ice Medal with four oak leaf clusters, Army ning north up the West Side Highway, looking I had kids to worry about, I knew I had to get Commendation Medal with oak leaf cluster; back as a cloud of dust engulfed his school. them out.’’ two Joint Meritorious Unit Awards; and the ‘‘I’ll never forget when the dust engulfed The teachers at P.S. 234, the Independence Armed Forces Expeditionary Medal. He is Stuyvesant,’’ he remembers. ‘‘I felt it was en- School, which is located dangerously close to qualified to wear, in addition to Master Para- gulfing my future, because school is your fu- the crash site, had to evacuate 6- and 7-year chutist Wings, the coveted Ranger tab and Air ture at this age.’’ old students during the most harrowing part of Assault wings. He has also been accorded the Ada Dolch, Principal at the High School for the disaster immediately after the second honor of receiving the Jump Wings of the Aus- Leadership and Public Service just four blocks Trade Center tower collapsed and enveloped tralians, British, and Saudi Arabians. from the site of the Twin Towers, made a se- the school in a debris-filled cloud. Many of the ries of decisions that students, staff and par- children were screaming for parents who actu- Colonel Warner and his wife, Joanie, have ents credit in saving innumerable lives. When ally worked in the towers. As one teacher four children: Margaret who is a lieutenant the first explosion came, Principal Dolch stepped into the street, a small child saw the with the Army Corps of Engineers in Germany; looked outside and what she saw made her burning bodies falling from the towers and Frances, a speech pathology graduate student immediately fear for her 600 students. She cried out, ‘‘Look teacher, the birds are on fire!’’ at Vanderbilt University; Kole, who serves with watched in horror as debris rained down on Taking some students by the hand and car- the West Virginia National Guard and attends Liberty Plaza and waves of frightened people rying others on their shoulders, the teachers West Virginia University and Travis, age 13. ran into the school lobby for safety. She plunged through the rubble-strewn streets that It is with great pride and honor that I wish moved her students away from the 6-by-6-foot were clogged with adults running for their windows in every classroom out into the hall- Kasey and his family the best as he retires lives. With their small charges in tow, they ways and told her kids to remain calm. Then from the United States Army and continues his walked 40 minutes north to the nearest safe the second plane hit and Stephen Kam of the school in Greenwich Village. Some children service to our great country as the U.S. Attor- New York Police Department’s Division of whose parents could not come to get them by ney for the Southern District of West Virginia. School Safety raced into the lobby and said to the close of the day went home with their He has set an inspiring example of dedication Principal Dolch that it was time to get the stu- teachers, and stayed with them until their to the defense of freedom and to the protec- dents out. Dolch agreed and teachers quickly mothers or fathers could be reached by tion of the basic liberties that the citizens of moved students out of the building floor by phone. our country enjoy by taking his turn at ‘‘stand- floor. Mr. Speaker, I salute the New York City ing on the wall’’ and now continues to defend Once outside, they met up with 750 of their Public City School community for their cour- freedom and liberties as a U.S. Attorney. peers from the High School for Economics age on September 11, and I ask my fellow

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00037 Fmt 0666 Sfmt 9920 E:\CR\FM\A20DE8.020 pfrm07 PsN: E20PT1 E2376 CONGRESSIONAL RECORD — Extensions of Remarks December 20, 2001 Members of Congress to join me in recog- task of shaping major education reform that recent years with technique, strategy, and tal- nizing their efforts by becoming, a co-sponsor would improve school policy in Missouri. She ent surpassing the highest of expectations. of House Resolution 325, which recognizes advocated for education policies that set high Athletics have become an integral element in the courage and professionalism of the entire academic standards for elementary and sec- educational programs for our youth; teaching New York City Public Schools community dur- ondary students, and she fought to give each teamwork, responsibility, pride, and discipline. local school district the same opportunity for ing and after the attack on the World Trade I am proud to say that in Georgia’s 7th Dis- state funds. Serving as both a commissioner Center on Tuesday, September 11th, 2001, as trict, at least six high school football programs on the Education Commission of the States well as supporting Federal assistance to the are to be congratulated on their outstanding and a member of its steering committee, An- school community. success this year. Paulding County and Troup nette Morgan was able to affect education pol- f High Schools made it to the final four in the icy on a national scale and use this expertise AAAA Division, while Cartersville High School HONORING THE MEMORY OF THE to benefit education in Missouri. She went on represented the district in AA competition. HONORABLE ANNETTE MORGAN, to serve as Co-chair of the Missouri Commis- FORMER MISSOURI STATE REP- sion on the Future of Teaching and as a Mem- Cedartown and LaGrange made the final four RESENTATIVE ber of the National Commission on Teaching in AAA, and will continue on to play each and America’s Future, and was a leader in key other for the state title, along with Bowdon HON. KAREN McCARTHY education reform legislation in Missouri, in- which will play Gwinnett County’s Buford High cluding the Excellence in Education Act in School for the A state championship. In addi- OF MISSOURI 1985 and the Outstanding Schools Act of tion to Buford, I would like to highlight Collins IN THE HOUSE OF REPRESENTATIVES 1993. The Outstanding Schools Act contained Hill for its accomplishments in the AAAAA divi- Thursday, December 20, 2001 lasting school reform to improve the state’s sion, and congratulate the Parkview Panthers on the team’s fourth trip to the state cham- Ms. MCCARTHY of Missouri. Mr. Speaker, I formula for distributing money to schools and pionship game in seven years. rise today to honor Annette Morgan, whose increase funding. The major education reforms death on December 18, 2001, is an immeas- to schools during the 1985Ð1995 decade are The spirit and camaraderie of high school urable loss to our community, the State of a credit to her persistence and unwavering athletics cannot be taught in a classroom, but Missouri, and our nation. Annette touched the commitment to the cause she loved. A former the lessons learned on the field will shadow lives of the people who knew her and the peo- public school teacher and dedicated education their counterparts for a lifetime. I congratulate ple she fought for as a State Representative advocate, she was the recipient of many hon- each team for their perseverance and dedica- in the Missouri General Assembly. A stalwart ors and awards as her abilities as a leader, tion, and thank the people who supported champion of the education needs of our chil- educator, legislator, and outstanding citizen them along the way. dren, she has left an indelible mark on count- were recognized by numerous groups. She was recently named to the Jackson County less lives. The school communities of Missouri f Honor Role, honoring the top 175 Jackson have Annette Morgan to thank for many of the Countians in celebration of the county’s 175th pioneering reforms established during her ten- HONORING CARL WARE anniversary. Annette’s legislative victories ure as a State Representative and during her were not limited to education. She initiated career as a champion for quality education. legislation that authorized the first 24-hour Throughout her career, Annette Morgan was HON. EDDIE BERNICE JOHNSON skilled nursing facility in the Midwest for HIV- a dedicated public servant, committed to our AIDS patients. OF TEXAS community and dedicated to our children. A Mr. Speaker, please join me in expressing lifelong resident of the state of Missouri, An- IN THE HOUSE OF REPRESENTATIVES sympathy to her loving family; her son John nette Morgan grew up in Kennett. She earned Allen Morgan, daughter-in-law Veronica; Thursday, December 20, 2001 degrees at the University of Missouri-Columbia daughter Katherine Morgan Campbell, son-in- and the University of Missouri-Kansas City in Ms. EDDIE BERNICE JOHNSON of Texas. law David, granddaughter Alexis Morgan Mr. Speaker, I rise to pay tribute to Mr. Carl social work and adult and continuing edu- Campbell; and loving friend William P. Mackle. cation. Annette pursued a teaching career that Her love of family and friends will be forever Ware. For almost a third of a century, he has began in the Bootheel, helping migrant work- remembered. She will live on in all those been a leader in the drive for responsible cor- ers. She later taught at William Chrisman High whose lives she touched. porate citizenship. He has been an inter- School in Independence and was coordinator national leader, and an ambassador of good- of adult and continuing education at Avila Col- f will not only for Coca-Cola, but for the entire lege. RECOGNIZING TOP GEORGIA HIGH country. Annette and I shared many memorable mo- SCHOOL FOOTBALL PROGRAMS Mr. Ware joined Coca-Cola twenty-seven ments when we served together in the Gen- years ago and since that time, he has rep- eral Assembly for 14 years. We enjoyed cher- HON. BOB BARR resented the best in American business. He ished morning walks that allowed us to reflect OF GEORGIA began as a government and urban affairs spe- upon the issues of the day and of our lives. IN THE HOUSE OF REPRESENTATIVES cialist, and then went on to lead the organiza- Our commutes to Jefferson City by Amtrak tion’s efforts to market to African-American Thursday, December 20, 2001 and auto provided us the opportunity to devise and Hispanic consumers. He has overseen successful strategies for legislative challenges Mr. BARR of Georgia. Mr. Speaker, it is no the company’s philanthropic efforts, with sig- and delight in the victories these strategies secret football is a second religion to the peo- nificant responsibility for international affairs. achieved. Our apartment afforded late night ple of the south, especially those that call He rose through the ranks to become Execu- gatherings of women members of the House Georgia their home. The sport dominates cas- tive Vice President of Global Public Affairs and and Senate that strengthened our resolve and ual conversation at least six months out of the Administration. enabled us to forge lasting bonds. year; it rules households and weekends, de- Perhaps, Mr. Ware’s greatest legacy is as Politics and government ran in Morgan’s termines anniversaries and the scheduling of architect of Coca-Cola’s strategy to divest blood. Her father, John Noble, was a 16-year political events, and occasionally instigates ar- from South Africa. The African National Con- state senator from Kennett in the Bootheel. guments ranging from ‘‘just what is the prob- gress applauded the company’s actions as a Her grandfather, John Bradley, served on the lem with the University of Georgia or the world model. Mr. Ware has been saluted by, Missouri Supreme Court. And her mother, Georgia Tech offense,’’ to ‘‘are you listening to Alletha Noble, was a lawyer and a teacher. me?’’ The traditions that are Sanford Stadium, among others, former South African President Because of her heartfelt interest in serving our Bobby Dodd Field, and the Georgia Dome Nelson Mandela and Archbishop Desmond community and state, Annette Morgan was have come to be a part of Georgia culture, yet Tutu. elected to the Missouri State Legislature in the hype that surrounds this spectacular sport Mr. Speaker, Mr. Ware will step down from 1980 and served in the House for 16 years. starts much sooner than the day the college his position with Coca-Cola next year. The en- She earned the Chairmanship of the Missouri boys strap on their pads and take to the field. tire nation is indebted to him for his leadership House Education Committee in 1985, and it High School football in Georgia has been in the causes of corporate world citizenship was in this capacity that she embraced the taken to a whole new level of competition in and global human rights.

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00038 Fmt 0666 Sfmt 0634 E:\CR\FM\A20DE8.023 pfrm07 PsN: E20PT1 December 20, 2001 CONGRESSIONAL RECORD — Extensions of Remarks E2377 CONFERENCE REPORT ON H.R. 1, H.R. 2187, CLEANUP FUNDS FOR United States. To many Vietnamese in San NO CHILD LEFT BEHIND ACT OF COLORADO OIL SHALE RESERVE Jose, Nguyen Van Thieu’s name is synony- 2001 mous with the struggle of the Vietnamese peo- HON. MARK UDALL ple to live freely without fear of Communist re- pression. As a founding member of the Con- SPEECH OF OF COLORADO IN THE HOUSE OF REPRESENTATIVES gressional Dialogue on Vietnam, I feel it is im- HON. NITA M. LOWEY portant that we in the House continue that Thursday, December 20, 2001 fight on behalf of those in Vietnam and around OF NEW YORK Mr. UDALL of Colorado. Mr. Speaker, I sup- the world who are unable to speak, assemble, IN THE HOUSE OF REPRESENTATIVES port this bill, which I have cosponsored with or worship freely. my colleague, the dean of the Colorado dele- Thieu was born April 5, 1923 as the young- Thursday, December 13, 2001 gation, Representative HEFLEY. est of five children in the poverty-stricken town H.R. 2187 would enable the Bureau of Land of Phan Rang in central Ninh Thuan province. Mrs. LOWEY. Mr. Speaker, I rise today in Management (BLM) to begin environmental He attended the Merchant Marine Academy support of the conference report. I want to restoration activities at the Naval Oil Shale and the National Military Academy in Dalat, commend Chairman BOEHNER and Ranking Reserve 3, near Rifle, Colorado, using existing and was commissioned as a 2nd lieutenant in Member MILLER for putting together a strong funds in a special Treasury account. 1949. As an infantry platoon commander in compromise on such an important issue. This account was specifically designated in the French campaign against the Viet Minh— This legislation has the potential to dramati- the Strom Thurmond National Defense Act for the precursor to the Viet Cong—he became cally change the public education system in Fiscal Year 1998 (Public Law 105Ð85) which regarded as a good strategist and capable this country. It authorizes significant levels of transferred administration of the two Colorado leader. Naval Oil Shale Reserves—Numbered 1 and President Thieu passed away with family funding. It says to parents that Congress be- 3, and known as NOSR 1 & 3—from the De- present in the suburbs of Boston, where he lieves education is a top priority, and that we partment of Energy to the Department of the spent the last years of his life. I wish to again will make good on our goal—that every child Interior for management by BLM. extend my condolences to his family and in America should get a quality education. This provision was added to that act by an those grieving his loss, and hope that one day I am pleased with the changes this bill amendment offered by Mr. HEFLEY with the the dream he shared of democracy, freedom, makes. Changes to the Title I formula will pro- assistance and support of my predecessor, and human rights will come to Vietnam. vide a 29-percent increase for New York City Representative David Skaggs. It specifies that f schools. For years, the New York City school receipts from existing mineral leases in NOSR IN MEMORY OF DOUGLAS system has provided an education to tens of 3 are to be retained in a special account in- ECCLESTON thousands of low-income and disadvantaged tended for cleanup of contamination caused children, while receiving less than their fair by previous activities on these lands. How- share of Title I funding. This money is espe- ever, to avoid Budget Act problems the HON. DAVE WELDON cially important as New York City schools re- amendment provided that subsequent legisla- OF FLORIDA cover from the continuing effects of Sep- tion would be required to authorize BLM to IN THE HOUSE OF REPRESENTATIVES tember 11. have access to the funds. Thursday, December 20, 2001 Since enactment of Public Law 105Ð85, the This legislation also promises parents that Interior Department has collected approxi- Mr. WELDON of Florida. Mr. Speaker, I rise their children will have qualified teachers in mately $8.5 million in lease receipts, which are to commemorate the life and service of Doug- the classroom, and that student progress will currently held in the special cleanup account. las L. Eccleston, a Staff Sergeant with the be closely monitored to ensure that they are Enactment of H.R. 2187 will allow BLM to United States Air Force, who lost his life on on the right track. use up to $1.5 million of these funds for the December 7, 2001, while performing a rescue mission 1,000 miles off the coast of Florida. I’ve had the pleasure to work with Chairman preliminary analyses needed before cleanup work can begin and to prepare an estimate of His heroic action successfully saved the life of RALPH REGULA and Ranking Member DAVID the cost of completing the project. BLM can a critically ill sailor. OBEY in crafting the Labor, Health and Human then begin work, unless the estimated cost of Mr. Eccleston honorably served his country Services and Education Appropriations bill. the work would be more than the total in the for 15 years and was a member of the elite They have both worked tirelessly to provide special account. If the estimate indicates that Pararescue team assigned to the 920th Res- significant increases in education funding this more would be required than the total in the cue Group at Patrick Air Force Base in Sat- year, and we will vote on the fruits of their account, a subsequent authorization will be re- ellite Beach, Florida. His service included mili- labor next week. quired before work can begin. tary action in Operation Just Cause and Oper- But while we will provide these increases Mr. Speaker, this is important legislation that ation Desert Storm as a Combat Controller. this year, the prospects for continuing to pro- will allow BLM to begin the process of clean- During the first part of his career, Doug was vide the resources necessary to continue our ing up the lands involved and reducing the a combat controller, an airman who helps di- efforts on education are dim. The faltering risks of contaminated runoff reaching the Col- rect air strikes from the ground, often in haz- ardous territory. During the last part of his ca- economy, coupled with the increasing impact orado River. I commend Mr. HEFLEY for intro- reer, Doug worked to become a Pararescue, of the President’s tax cut, will make the appro- ducing the bill and urge its approval by the also known as a ‘‘PJ’’, an airman who rescues priations process exceedingly difficult in the House. f downed aviators anywhere in the world under coming years. We will be forced to make any conditions. some difficult choices. TRIBUTE TO PRESIDENT NGUYEN Mr. Eccleston’s military decorations include: This same dilemma will be felt in all fifty VAN THIEU Air Force Commendation Medal, Air Force states. School districts across the country are Achievement Medal, Air Force Reserve Meri- being forced to slash their budgets as state HON. ZOE LOFGREN torious Service Medal, and National Defense revenues have plummeted. If we enforce OF CALIFORNIA Medal. these new requirements without ensuring that IN THE HOUSE OF REPRESENTATIVES Doug is survived by his wife, Stacie, his lov- ing parents David and Donna Eccleston and schools have the funding to implement them, Thursday, December 20, 2001 our school districts will have to make choices sisters Dana Mohr and Dianna Coulton. Sev- they shouldn’t be asked to consider. Ms. LOFGREN. Mr. Speaker, I rise to ex- eral hundred people attended the memorial tend my sincere condolences to the family of service that was conducted at Pelican Beach I support this legislation, and I urge my col- former Vietnamese President Nguyen Van Park in Satellite Beach, Florida, on December leagues to support it as well. I also hope that Thieu, who died on September 29, 2001. 11, 2001. Funeral services were held in Mid- our support for education does not stop at au- President Thieu played an important role in land, Texas on December 13, 2001. thorizing funds, but that this vote today is the the history of his country and that of the Doug will be remembered by those who first step in the process of providing the nec- United States. loved him as a fun loving, caring man. His essary resources. Our children deserve no Thieu’s passing closes a sad chapter in the life’s passions included family and surfing. In less. history of two nations—Vietnam and the memory of Doug Eccleston’s love of surfing,

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00039 Fmt 0666 Sfmt 9920 E:\CR\FM\A20DE8.026 pfrm07 PsN: E20PT1 E2378 CONGRESSIONAL RECORD — Extensions of Remarks December 20, 2001 six of Eccleston’s surfing buddies and fellow Harriet Miller grew up in Idaho and attended From Northeast, he went on to attend the Uni- airmen paddled out on surfboards into the At- Whitman College in Walla Walla, Washington, versity of Missouri, where he received his lantic Ocean and cast a wreath on the water. graduating with a Bachelor of Arts degree in bachelors degree in 1931 and his law degree Our thoughts and prayers are with his family chemistry. After graduation, she went on to in 1933. In 1935, he wed his wife, Gertrude. and friends. earn a Master of Arts degree in political Floyd and his lovely wife have raised three ‘‘There’s no greater gift than giving your life science from the University of Pennsylvania, successful and talented children, Charles, so that another may live,’’ said Chief Master and later received an Honorary Doctorate in John, and Catherine, while demonstrating a Sgt. Greg Lowdermilk. ‘‘He gave the ultimate Humane Letters from Whitman College. distinguished career in public policy and the sacrifice and we’ll always remember him for Education has always been a driving force law. Judge Gibson entered private law prac- that. We’ve lost another great American.’’ We in Harriet’s life. From 1950Ð1955 she served tice in the Kansas City area, where he rose to will all miss him. Doug Eccleston is a true as an Associate Professor and Associate become a named partner in three firms. While hero. Dean of Students at the University of Mon- in private practice, Judge Gibson was elected f tana. She was then elected as the Super- County Counselor for Jackson County. intendent of Public Instruction for the State of He later turned his efforts to state govern- OLYMPIC TORCH BEARER GEORGE Montana in 1956, and additionally served the ment where he served 21 years in both the M. MOORE state as a member of the Board of Land Com- House and Senate of the Missouri General missioners, the Library Commission, the Assembly. He believed ‘‘politics is the HON. SHELLEY MOORE CAPITO Teachers Retirement Board and the Board of handmaiden of the law and should be actively pursued by members of the legal profession OF WEST VIRGINIA Education, in addition to being an exofficio Re- as an avocation.’’ The Judge distinguished IN THE HOUSE OF REPRESENTATIVES gent of the Montana University system. In 1969 Harriet first moved to Santa Barbara himself in the Missouri Senate as Chairman of Thursday, December 20, 2001 and started HMA, a management consulting the Judiciary Committee, Majority Floor Lead- Mrs. CAPITO. Mr. Speaker, I rise today in company. Yet after seven years of serving as er, and in his final term as President Pro Tem of the Senate. His success did not go unno- honor of a constituent of mine, Mr. George M. president of the company, Harriet relocated to ticed—in 1960 the ‘St. Louis Globe Democrat’ Moore. I have the pleasure of knowing George Washington, D.C. and over the next several newspaper named Floyd Gibson the Most Val- personally, and I am proud to recognize him. years served as Executive Director of the uable Member of the Missouri State Legisla- Tonight, George will carry the Olympic torch in American Association of Retired Person, the Martinsburg, West Virginia. ture. National Retired Teachers Association and the With such credentials, President John F. Although George considers this a once in a U.S. Occupational Safety and Health Review lifetime opportunity, it will actually be his sec- Kennedy nominated him in 1961 to become a Commission. She then returned to Santa Bar- U.S. District Judge for the Western District of ond time to run the Olympic torch. Seventeen bara and was appointed to Santa Barbara City Missouri. Judge Gibson was named to the po- years ago, George carried the flame for the Council in 1987, was elected during the same sition of Chief Judge one year to the day of 1984 Olympic games. year, and was reelected as a City Council his September 1961 appointment. In June of In service to our country, George Moore has member in 1992. 1965 President Johnson appointed Judge Gib- sacrificed much. As a United States Air Force In January, 1995, Harriet was appointed as son to the U.S. Court of Appeals for the fighter pilot, Moore did two tours of duty in Mayor, and then went on to become elected Eighth Circuit. He served as Eighth Circuit Vietnam from 1967 to 1970, when his plane as Mayor in November of 1995. She was then Chief Judge from 1974 to 1980 when he as- crashed into runway construction. Injuries from reelected in 1997. During her tenure, Harriet sumed senior status. As a dedicated public this accident put George in a wheelchair. He Miller served the City in many ways, including servant, he continued to serve the Bench ac- was only 26 at the time. serving as either a chair, active member, or on tively until June of 2000. Today George Moore is an active member the Board of Directors for countless agencies. Judge Gibson has received numerous of our West Virginia community. He serves as Throughout the years, Harriet Miller has awards and honors. He received the Univer- the director of the Martinsburg Veterans Af- been a pleasure to work with and after step- sity of Missouri Faculty-Alumni Award. He was fairs Medical Center. He is a devoted father ping down from office she will surely be named Phi Kappa Psi Man of the Year. The and husband. His active life is proof that missed. The City of Santa Barbara has been Missouri Bar Foundation honored Judge Gib- George has the ability to overcome any chal- fortunate to have such a distinguished woman son with the Spurgeon Smithson Award. He lenge or obstacle with which he is faced. as Harriet as Mayor, and the City will never was an Honorary Member of the Order of Coif. In the Olympic spirit, George has dedicated forget all her wonderful achievements. I would He received the Kansas City Bar Association his stretch with the torch to the victims of the like to thank Harriet today for her dedication to Annual Achievement Award and was a recipi- September 11th terrorist attacks. His compas- Santa Barbara, and wish her the best of luck ent of the Lawyers Association’s Charles sionate and determined approach to life is im- in all her future endeavors. Evans Wittaker Award. A member of the Mis- pressive and truly embodies the Olympic spirit. f souri, Kansas City, Federal, and American Bar George Moore is an inspiration to all of his Associations, Judge Gibson has distinguished A TRIBUTE TO THE HONORABLE fellow West Virginians. George is extremely himself through his legal work. deserving of this privilege of carrying the AND DISTINGUISHED LIFE OF Judge Gibson’s service to his community in- Olympic torch in our home state of West Vir- EIGHTH CIRCUIT COURT OF AP- cluded the Chairmanship of Manufacturers ginia. I am honored to commend George PEALS SENIOR JUDGE FLOYD R. Mechanics Bank and Blue Valley Federal Sav- Moore and I wish him all the best tonight. GIBSON ings & Loan. He had an intense interest in ag- f riculture and was a member of the Gibson HON. KAREN McCARTHY Family Limited Partnership, which owns the HONORING MAYOR HARRIET OF MISSOURI Lone Summit Ranch and other farm ground in MILLER IN THE HOUSE OF REPRESENTATIVES Jackson County, Missouri. Judge Gibson also Thursday, December 20, 2001 gave back to the Kansas City community HON. LOIS CAPPS through his service on the Board of Trustees OF CALIFORNIA Ms. MCCARTHY of Missouri. Mr. Speaker, I for the University of Missouri-Kansas City and IN THE HOUSE OF REPRESENTATIVES rise today to pay tribute to Floyd R. Gibson, as an Advisory Director to the Greater Kansas Senior Judge, U.S. Court of Appeals for the Thursday, December 20, 2001 City Community Foundation. He was recently Eighth Circuit who died Thursday, October 4, recognized as one of the top living contribu- Mrs. CAPPS. Mr. Speaker, today I would 2001. Judge Gibson was a stalwart for justice tors to the University Missouri-Columbia Law like to pay tribute to a woman who is not only and his professional career exemplifies his un- School. an extraordinary citizen of Santa Barbara, wavering dedication to public service. His ten- Judge Gibson’s life is celebrated by a host California, but has also served the city as ure in the Missouri State Legislature and his of loving family, friends, and colleagues who Mayor for the last eight years. On December 34 years on the Eighth Circuit, created a leg- mourn his loss. Mr. Speaker, please join me in 30, 2001, the City of Santa Barbara will honor acy of commitment to Justice and the common expressing our heartfelt sympathy to his de- Harriet Miller and pay tribute to her for all the good. voted wife of 66 years, Gertrude, his sons, wonderful things she has accomplished not Judge Gibson was born in the Arizona Terri- John and Charles, his daughter, Catherine, his only during her tenure as Mayor, but through- tory in 1910. He moved to Kansas City at age daughters-in-law, Judy and Bonnie, his be- out her life. 4 and graduated from Northeast High School. loved grandchildren, Heather Allen, Jennifer

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00040 Fmt 0666 Sfmt 9920 E:\CR\FM\A20DE8.030 pfrm07 PsN: E20PT1 December 20, 2001 CONGRESSIONAL RECORD — Extensions of Remarks E2379 Ringgold, Lynn Gibson-Lind, Scott Gibson, Women. She stood up for the rights of Anita Celia drove to work, she passed by Everett David Gibson, Joshua Glick and Amber Glick, Hill, she raised awareness of domestic abuse, Airport and saw an opportunity. An admirer along with his great-granddaughter, Isabelle and she fought against those who would re- of Amelia Earhart, she decided to learn to fly. One week after her 21th birthday she Allen. Judge Floyd R. Gibson will be greatly gard women as second class citizens. took off on her first flight and was imme- missed, but his legacy and commitment to jus- Through it all, she developed a reputation for diately hooked. tice and equality will live on in the hearts and integrity and effective action. During the election controversy of 2000, she ‘‘The viewpoint from on high is so dif- minds of those he touched. ferent, and so much more comprehen- Judge Gibson was active and energetic as was a consistent champion of the right of sive...just that whole feeling of being a leader of the Democratic Party of Missouri; Americans to have his or her vote counted. aloft. It gives you a feeling that birds must however, he left partisan politics at the door of She has helped move NOW squarely into a have. In fact, I think, if I wanted to be re- the courthouse when he became a member of role as a leading civil rights institution. incarnated, I’d like to be a bird of some the Federal Judiciary. He is remembered by Throughout her lifetime of service, Ms. Ireland sort.’’ all who knew him and those who appeared has stood up to those in power and spoke up Celia had discovered her first wilderness. before him as a fair, direct and competent for those who would otherwise not have had Her love of flying led her to train with the judge. He loved his work as a judge, and even a voice. Women Airforce Service Pilots, and she be- after retirement in 1979, he continued to serve Mr. Speaker, Ms. Ireland stepped down as came skilled at flying a number of aircraft, the Bench and his country in active senior sta- President of NOW earlier this year. The coun- including large aircraft such as the P–47 that try looks forward to her continued leadership, zoomed up to 300 mph. Celia ferried aircraft tus until June of 2000. Judge Gibson served across the country for the Air Force during his country for most of the Twentieth Century. and is indebted to her for her service. WWII and dreamed of flying to Alaska one He served with honor and distinction. He f day to see the vast wilderness that other pi- asked for no more and we cannot think of a lots had described. better epitaph. TRIBUTE TO ALASKA’S CELIA HUNTER In December 1946, she and pilot friend f Ginny Hill were hired to fly two Stinson air- planes from Seattle to Fairbanks. They ar- RECOGNIZING GWINNETT COUN- HON. MARK UDALL rived in a snowstorm at Weeks Field in Fair- TY’S NEW HIGH-TECH COLLEGE OF COLORADO banks on January 1, 1947, nearly a month- CAMPUS IN THE HOUSE OF REPRESENTATIVES long trip with all the weather delays. They decided to stay and work in the tourism in- HON. BOB BARR Thursday, December 20, 2001 dustry, ferrying visitors to a travel lodge in Mr. UDALL of Colorado. Mr. Speaker, ear- Kotzebue during the summer. OF GEORGIA lier this month news came of the death of one This experience inspired Celia, Ginny Hill IN THE HOUSE OF REPRESENTATIVES of the pioneers of the conservation movement Wood, and Woody Wood to build Camp Thursday, December 20, 2001 in Alaska, Celia Hunter. Denali, a wilderness camp just outside the original boundary of McKinley National Mr. BARR of Georgia. Mr. Speaker, recent A founder of the Alaska Conservation Soci- ety—Alaska’s first statewide organization of its Park. There visitors could see Denali and changes in global economics have had a di- enjoy hiking and wildlife-viewing in a mag- rect effect on the face of America’s job mar- kind—Celia Hunter was involved in many de- nificent setting. ket. To be professionally competitive some de- bates over the future of Alaska, including the ‘‘Project Chariot’’ plan to use nuclear explo- In 1960, Celia and Ginny help found Alas- gree of higher learning is rapidly becoming a ka’s first statewide environmental organiza- necessity. Educational administrators in Geor- sives to dig a new deep-water port and the tion, the Alaska Conservation Society. This gia have recognized the growing need for proposed Rampart Dam on the Yukon. small group of pioneering conservationists these resources and have taken action to And in the late 1970’s, she was among the was inspired by Olaus and Margaret Murie to meet increasing demands. many people from across the country whose work for the establishment of the Arctic Na- Three institutions have come together to strong support made possible the enactment tional Wildlife Range and to protect the spe- create a new learning facility in Gwinnett of the Alaska National Interests Land Con- cial and unspoiled lands of Alaska. County. The collaborative efforts of the Board servation Act, introduced in the House of Rep- Working together, Celia and Ginny have of Regents, the University of Georgia, and resentatives by my father, Mo Udall of Ari- tackled all of Alaska’s major environmental Georgia Perimeter College will all be revealed zona. issues. They fought against Project Chariot Now Congress has again been debating the and the Rampart Dam project, became lov- on January 7, 2002, with the opening of ing stewards and advocates for Denali Na- Gwinnett’s new high-tech campus; helping al- proper balance between development and conservation in Alaska, and again Celia tional Park, and worked to create and pass leviate higher educational needs for the North- the 1980 Alaska National Interest Lands Con- east metro-Atlanta community. The University Hunter was active and involved in that debate servation Act, the greatest lands conserva- of Georgia and Georgia Perimeter College will right up to the day of her death. As she ex- tion act in world history. plained earlier this year, it remained her view serve as partners in this new endeavor and In the late ’70s, Celia’s leadership moved to promise to bring forth the very latest in tech- that ‘‘If we lose wild spaces, we could be a the national level when she served as Execu- nological and educational services available to much poorer nation . . . the whole concept of tive Director for the Wilderness Society. She students. natural areas, with intact ecosystems is vital to also began writing memorable environ- I would like to take this moment to congratu- life . . . we need places of the world that are mental columns for the Fairbanks Daily late the successful efforts of the forming team still natural.’’ News-Miner. Fearless and outspoken, Celia Mr. Speaker, in the words of the Fairbanks carefully studied a diversity of issues and and wish them the best of luck with the new wrote articulate and compelling columns for campus. Daily News-Miner, Celia Hunter’s death was a ‘‘great loss for Alaska,’’ and it leaves the more than 20 years. Dedicated to the con- f servation movement, she also helped found whole country poorer. She earned our thanks the Alaska Conservation Foundation in 1980. HONORING MS. PATRICIA IRELAND and remembrance. She will be greatly missed. For the benefit of our colleagues, I am at- Through the years, Celia not only devoted her energy to environmental causes, she also HON. EDDIE BERNICE JOHNSON taching a brief outline of her life as well as a loved people and the web of connections be- OF TEXAS newspaper editorial. tween them. She had the natural ability to IN THE HOUSE OF REPRESENTATIVES CELIA’S LIFE inspire and nurture countless individuals by listening to their ideas and dreams and shar- Thursday, December 20, 2001 Many are called, but few choose to hear and give of themselves completely. Celia ing her views. Her glacial-blue eyes could Ms. EDDIE BERNICE JOHNSON of Texas. Hunter heard the call of the wilderness at an look into one’s soul and bring out the best of Mr. Speaker, I rise to pay tribute to Ms. Patri- early age and answered it with her adven- a person’s spirit including a good laugh. cia Ireland. During her many years of service turesome spirit, loving heart, and thoughtful Celia leaves a tremendous legacy of con- in the fight for equal rights, Ms. Ireland has mind. servation accomplishments. Her vibrant spir- Born on January 13, 1919 in Arlington, it will live on in the wilderness she loved, in been a tireless crusader for the fundamental Washington, Celia grew up during the De- the lives of those she inspired, and in the leg- principles of our democracy. She is a true pression in a logging community. After high islation that holds her tireless effort to pro- America heroine. school graduation, she worked as a clerk for tect what she truly loved. The earth and all For ten years, Ms. Ireland served as the Weyerhauser Timber Company for $50 a its a living things are grateful. Alaska will president of the National Organization for month, enough to buy a car. Each day when forever remember Celia.

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00041 Fmt 0666 Sfmt 0634 E:\CR\FM\A20DE8.034 pfrm07 PsN: E20PT1 E2380 CONGRESSIONAL RECORD — Extensions of Remarks December 20, 2001 [From the Fairbanks Daily News-Miner, Dec. TRIBUTE TO CAPTAIN VIRGIL one of three finalists considered for the posi- 4, 2001] AUGUSTUS KING tion in a selection process that lasted just A GREAT LOSS FOR ALASKA three months. Upon reaching the finalist cat- HON. ZOE LOFGREN egory, it became an easy board decision to Celia Hunter died still doing the work she name Dr. Applbaum to the University’s top loved most—fighting for Alaska’s environ- OF CALIFORNIA IN THE HOUSE OF REPRESENTATIVES post. The doctor was selected trusting that he ment. can continue to lead the University of South- The night before her death Hunter had Thursday, December 20, 2001 ern Colorado to the prominence and stature been putting together a list of U.S. senators Ms. LOFGREN. Mr. Speaker, I rise to com- that the educational institution maintains today who might be considered undecided regard- mend Captain Virgil Augustus King, who will in the State of Colorado. ing the Senate vote on drilling in the Arctic be retiring from the Santa Clara County De- Dr. Applbaum has enjoyed a long and dis- National Wildlife Refuge. partment of Correction on December 28th tinguished career in higher education. He has Hunter spent more than 50 years as a pio- after twenty-six years of service to Santa served in numerous academic positions for neer and conservationist in Alaska, most Clara County. several colleges and universities throughout often working side-by-side with her long- Captain King joined the Department of Cor- the country. He received a bachelors and time companion and fellow conservationist rection in 1989 after serving as a Deputy masters degree in speech communication Ginny Wood. Sheriff and Sergeant for the Sheriff’s Depart- from California State University and later a Hunter’s years of dedication to the protec- ment. Since that time, he has served as a doctorate in the field from Pennsylvania State tion and preservation of Alaska and her Sergeant in the Main Jail, Work Out of Class University. He served as the Vice President of work to that end on the local, state and na- Lieutenant in The Training Unit, Personnel Academic Affairs for the University of Texas- tional levels meant that she played a vital Unit and the Elmwood Complex. Captain King Pan American and Dean of the School of Hu- role in shaping Alaska’s environmental fu- was promoted to Captain in July of 1999, and manities for Long Beach State. His rise to ture. currently serves as the Programs Division, USC’s top post began with a term as presi- Her work and contributions to increase Professional Compliance and Audit Unit and dent of Westfield State College in Massachu- public awareness of Alaska’s unique natural Special Projects Commander. setts, and serving as the President of Kean resources have been pushed even more into Captain King was integral to the develop- University in New Jersey since 1996. the public eye as the nation began focusing ment of the Regimented Corrections Program Mr. Speaker, it is my pleasure to welcome on solving national energy policy issues. One (RCP), a modified boot-camp program with a Dr. Ronald Applbaum to Pueblo and the Uni- of the biggest questions directly related to strong emphasis on education. RCP has been versity of Southern Colorado. The community Alaska has been what role if any should a highly successful program which this De- is truly fortunate to gain this new and distin- ANWR play in that policy—the very issue cember is celebrating its 5th Anniversary. guished leader. I would like to further welcome Hunter contemplated during her last days. Captain King was also instrumental in the de- his family to the area and look forward to Hunter and Wood first flew in Fairbanks in velopment of the Artemis Program, a similar meeting them in the coming year. Congratula- January 1947, piloting two planes to be deliv- program designed for pregnant women and tions on your latest achievement, Dr. ered to the Interior. Extreme temperatures women with young children, which was se- Applbaum, and welcome to your new home. I kept the pair here longer than expected, and lected as the 2001 recipient of the Thomas M. am confident when I say the commitment to after spending a bit of time in Europe, they Wernert Award for Innovation in Community were back to stay. higher education is strong with leaders such Behavioral Healthcare. The latest innovative as yourself and I am assured you will continue The list of her works in conservation and program developed under Captain King’s di- to perform great work! environmentalism are lengthy. In the 1950s, rection is Women in Community Services, a f Hunter and Wood built Camp Denali, an pre- and post-program for female inmates in early combination of ecology and tourism. Santa Clara County, which starts with classes PAYING TRIBUTE TO JACOB Not long after, Hunter was a founding mem- inside the jail and extends into the community SCHOOLEY ber of the Alaska Conservation Society, the first statewide conservation society in Alas- for supportive aftercare. Each of the partici- ka. Later on, she was instrumental in the pants is matched up with a professional men- HON. SCOTT McINNIS formation of the Alaska Conservation Foun- tor for up to six months to assist them in the OF COLORADO dation and served as its first board chair. successful achievement of their individual IN THE HOUSE OF REPRESENTATIVES Hunter was interim executive director of The goals. Thursday, December 20, 2001 Wilderness Society in the 1970s. In 1991, she I wish to thank Captain Virgil King for his was presented the Sierra Clubs’ highest compassionate dedication to the County and Mr. McINNIS. Mr. Speaker, I would like to honor and has received innumerable awards wish him the best in his future endeavors. His take this opportunity to recognize and pay trib- in recognition of her dedication and service innovation and loyalty will be sorely missed, ute to a hero of the community of Glenwood to conservation. but the people of the County are the richer for Springs, Colorado. Jacob Schooley recently News-Miner readers recognize Hunter as a his service. distinguished himself in a local fire that threat- longtime contributor to this page—she began f ened to destroy a historic building and injure writing her column in 1979. While her opin- several residents. I would like to highlight Ja- ions quite often differed from our own, our PAYING TRIBUTE TO RONALD cob’s heroics and thank him for his service. respect for Hunter was beyond question. APPLBAUM Jacob arose to a regular morning on Satur- day, December 1, 2001, until he heard fire In the days since her death, Hunter’s friends and associates have described her in HON. SCOTT McINNIS alarms ringing throughout his residence. After a variety of ways: pioneer, voice of respon- OF COLORADO making a call to 911, Jacob proceeded to sible environmentalism, adventurer, kind IN THE HOUSE OF REPRESENTATIVES awaken his neighbors to the danger that lay ahead. After finding the source of the fire, and honest with everybody. And all said that Thursday, December 20, 2001 her passing would leave a void in Fairbanks Jacob extinguished the flames and directed and in Alaska. Mr. McINNIS. Mr. Speaker, I would like to the residents to safety. Jacob continued to In during a 1986 interview with a News- take this opportunity to recognize the new fight the fire until firefighters arrived on the Miner reporter, Hunter said that her basic President of the University of Southern Colo- scene to control the blaze. As a result of his philosophy was that much of the damage rado, Ronald Applbaum. The University and quick reaction, the fire damage was minimal done to the earth was caused by people mak- the community of Pueblo are fortunate to have and the residents were allowed to reoccupy ing a living. That creates an obligation, she Dr. Applbaum join their extended family. As he their homes soon thereafter. said: ‘‘Each one of us has a responsibility to prepares for his new post, I would like to rec- Mr. Speaker, I again commend Jacob take care of the part of the world we live ognize several of his academic achievements Schooley for his quick action and decisiveness in.’’ and wish him the best of luck when he takes in a time of crisis. The fire harmed several Hunter’s life-long goal was to minimize the his new post in July. residents and firefighters with burns and footprints that humans leave on our environ- Dr. Applbaum was selected to head the Uni- smoke inhalation, but without Jacob’s efforts, ment. But through her work and her passion versity based on his impressive academic re- the toll could have been much worse. I am Alaska, she has left behind an impression sume and past successes he has enjoyed in honored to represent citizens like Jacob and that will long be remembered. other higher education institutions. He was his community of Glenwood Springs. Thank

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00042 Fmt 0666 Sfmt 9920 E:\CR\FM\A20DE8.040 pfrm07 PsN: E20PT1 December 20, 2001 CONGRESSIONAL RECORD — Extensions of Remarks E2381 you for your efforts Jacob and this body ap- servants, community members, and media a cessation of nuclear explosions. These preciates your dedication to helping others in representatives have taken part in its activi- events led to the Limited Test Ban Treaty of a time of need. ties. In the Russian city of Ryazan, which had 1963, which prohibited all nuclear explosions f been marked by anti-Semitic acts, the Climate in the atmosphere, in space, and under water. of Trust program proposed several initiatives Next came the Threshold Test Ban Treaty of BREAKING THE ABM TREATY which were later enacted and are in the proc- 1974, which limited the explosive force of un- COULD SPARK A NEW ARMS RACE ess of implementation. In 2002Ð03, the Bay derground tests, and the Peaceful Nuclear Ex- Area Council plan is to continue their activities plosions Treaty of 1976, which extended that HON. RUSH D. HOLT in Ryazan and expand them to several other limit to nuclear explosions for ‘‘peaceful pur- OF NEW JERSEY Russian communities outside of Moscow. This poses’’. These two treaties were ratified in IN THE HOUSE OF REPRESENTATIVES is a worthy and important work that earned 1990 but fell short of limiting all nuclear explo- Thursday, December 20, 2001 Bay Area Council a tribute in the 2001 State sions. Department International Religious Freedom Mr. HOLT. Mr. Speaker, It is with tremen- Report. The end of the Cold War and the thawing of dous concern that I note the President’s an- Not only our government has recognized the U.S.-Russia relations reinvigorated efforts to nouncement that the United States will with- Climate of Trust program as effective and suc- seek a total ban of nuclear test explosions. In draw from the Anti-Ballistic Missile (ABM) cessful in training Russian law enforcement 1994, I cosponsored H. Con. Res. 235, which Treaty. This is an ill-advised decision that and other government officials in promoting lauded the President for maintaining a morato- could have dangerous repercussions in the tolerance. The government of the Russian rium on testing nuclear weapons and for being long run. Federation also identified the Climate of Trust supportive of a comprehensive test ban. With The most troubling part of the President’s program as a key component of its 2001Ð2005 strong international support, the CTBT was fi- decision today is the rationale supporters have national program for preventing extremism and nally opened to signature in September 1996 used to justify backing out of the treaty: they promoting tolerance in Russian society. When and was promptly signed by the President. claim it interferes with the United States’ de- Congress graduates Russia from Jackson- The ball then moved to the Senate’s court. In velopment of a National Missile Defense Vanik next session, the role of the Bay Area September 1997, I cosponsored H. Res. 241, (NMD) system. This is clearly a straw man ar- Council and other non-govemmental organiza- which urged the Senate to give its advice and gument. tion will become even more important in the consent to ratification of the CTBT. Despite The United States is nowhere near devel- human rights dialogue between our countries. certification by the President that there were oping or fielding a working NMD system, after The Climate of Trust is exactly the kind of no safety or reliability concerns about the nu- decades and billions of dollars of effort. To program we should be supporting in Russia. It clear arsenal that required underground tests, back out of the treaty at this time, a time when is cost-effective and it works at the grass-roots consideration of the Treaty was held hostage we are working closely with Russia and other level with communities throughout Russian by politics and, in 1999, was rejected by the allies in the international war on terror, is Federation. The program is interactive and re- Senate. unneeded and simply off base. And to do so sponsive to the needs of these communities, Now we come to the present day when 162 for such a technologically premature program I am confident it has immediate and lasting ef- States have signed the treaty and 87 have is clearly folly. fect on individuals and communities besieged ratified it. The Treaty has still not entered into Backing out of the ABM treaty is not without by xenophobia. The Russian Democracy Act, force, however, and the United States is not serious repercussions. For example, a senior legislation which I authored and which passed among the ratifiers. The current administration Russian lawmaker predicted in response to to- the House unanimously last week, earmarks has emphatically refused to consider a com- day’s news that Russia will pull out of the at least $50 million for activities designed to prehensive test ban and did not even send a Start I and Start II arms reduction treaties. I support Russian civil society at all levels. I re- representative to the Conference. fear that today’s action will lead to a spiral of spectfully ask the Administration and the State action and reactions, sparking a new arms Department to extend all possible support to The administration’s rejection of the CTBT race would not make us less, not more, se- the Bay Area Council so that the Council may and withdrawal from the Anti-Ballistic Missile cure. expand and continue its grassroots efforts at Treaty send the wrong message to the inter- f combating xenophobia and promoting civil so- national community about our commitment to ciety in Russia. nonproliferation. Our whole nonproliferation SUPPORT FOR BAY AREA COUNCIL stance is linked to the CTBT, since it signals FOR JEWISH RESCUE AND RE- f our intention to meet the expectations of the NEWAL TIME TO RATIFY THE CTB Nuclear Nonproliferation Treaty (NPT). Under the NPT, nuclear weapons States pledged to HON. TOM LANTOS HON. EDWARD J. MARKEY work in good faith toward total disarmament in OF CALIFORNIA OF MASSACHUSETTS exchange for an agreement by non-nuclear IN THE HOUSE OF REPRESENTATIVES IN THE HOUSE OF REPRESENTATIVES weapons States to limit their use of nuclear Thursday, December 20, 2001 Thursday, December 20, 2001 technology to peaceful applications. Cessation of testing new weapons is a vital part of any Mr. LANTOS. Mr. Speaker, I rise today to Mr. MARKEY. Mr. Speaker, I rise today to serious disarmament plan. If the United States express my support for the Bay Area Council express my concern over recent reports that won’t even agree to consider a test ban, and for Jewish Rescue and Renewal (Bay Area the administration is considering the develop- is clearly signaling its intention to go forward Council), an exemplary organization which has ment of so-called ‘‘low-yield’’ nuclear weap- with development of nuclear missile defense, been carrying out important work in the Rus- ons. While these mini-nukes are allegedly how can we possibly persuade other nations sian Federation. being considered to promote a longstanding to forego their weapons programs? The Bay Area Council has designed and im- nonproliferation goal of destroying buried plemented a Climate of Trust program to en- stockpiles of chemical and biological weapons, In this age of heightened concern over ter- able Russian law enforcement officials to com- testing these weapons would break a 9-year rorist threats we need the CTBT now more bat ethnic and religious intolerance and xeno- moratorium on nuclear testing and would have than ever. Much work remains to be done to phobia in Russia by providing a sustained and grave implications for nonproliferation. This ac- reduce the threat of terrorists obtaining and supportive relationship between American and tion would continue to undermine the future of using weapons of mass destruction. A ban on Russian communities, law enforcement profes- the Comprehensive Test Ban Treaty (CTBT), all nuclear explosions limits the ability of ter- sionals, city administrators, prosecutors, which is already under assault in this adminis- rorists to develop their own nuclear weapons human rights activists, educators, and local tration. or to acquire them from hostile nonnuclear media representatives. The goal is to promote The CTBT is the culmination of a series of weapons States. The CTBT should be an inte- tolerance and reduce incidents of hate-based incremental efforts to stop the threat of nu- gral part of our anti-terrorism efforts and I urge violence in Russia through training, seminars, clear war following the explosion of two nu- my colleagues to support its ratification. When workshops, and symposiums. clear weapons during World War II. The radio- the President comes to Congress to get the The Climate of Trust program has brought active fallout from hundreds of test explosions 1994 ban on the development of new nuclear in tangible results. Over the 2000Ð01 period, in the 1950’s and the near catastrophe of the weapons lifted I urge my colleagues to vote no more than five hundred Russian officers, civil Cuban Missile Crisis strengthened support for to the President’s request.

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00043 Fmt 0666 Sfmt 0634 E:\CR\FM\K20DE8.003 pfrm07 PsN: E20PT1 E2382 CONGRESSIONAL RECORD — Extensions of Remarks December 20, 2001 REMARKS ON ACCELERATED As a young man who once shined shoes on ber-crew of an Air Force BÐ1B bomber that DEPRECIATION the corner of First Street and Gage Avenue in crashed on December 12th in the Indian East Los Angeles, Jesus saw his hard work Ocean. In particular, I would like to highlight HON. CHARLES A. GONZALEZ and perseverance take him from the lowest the role of Boatswain Mate 1st Class Stephen OF TEXAS position in the Los Angeles County Fire De- Lyons, a native of my District. IN THE HOUSE OF REPRESENTATIVES partment, suppression aid, to fire fighter, then In addition, Mr. Speaker, I would like to note Thursday, December 20, 2001 inspector, to Captain by 1984. Five years later that I am proud of him and all the military per- he was promoted to Battalion Chief, and by sonnel from Northeastern and Central Penn- Mr. GONZALEZ. Mr. Speaker, I would like 1994 he had become Assistant Fire Chief, sylvania and grateful for their willingness to to express my strong support for efforts to in- serving for a time as Los Angeles County Fire serve America. crease the depreciation deduction. In my view Marshal. I would now like to enter into the record the accelerated depreciation is one of the most ef- Chief Burciaga has accomplished many following article about Boatswain Mate 1st ficient and effective ways for Congress to spur ‘‘firsts.’’ He became one of the youngest fire- Class Lyons from the December 17th edition business investment in our country. fighters to qualify for Captain at the age of of the Wilkes-Barre Citizens’ Voice: Mr. Speaker, as you know this year has twenty-five. He became the first Fire Marshal CITY NATIVE INVOLVED IN INDIAN OCEAN seen a dramatic drop off in business invest- of Latino descent in the County’s history. And ment. Business investment was one of the RESCUE he is certainly the first fortyseven year old fa- (By Gene Skordinski and Tom Venesky) foundations of the economic boom that our ther of five daughters whom I have witnessed nation enjoyed during the Clinton Administra- A Wilkes-Barre native was one of the mem- retain not only his hair but its natural dark bers of the USS Russell who rescued the four tion. It is therefore critical that Congress does color. what it can to restart the capital investment member-crew of an Air Force B–1B bomber I met Jesus more than thirteen years ago at that crashed Wednesday in the Indian Ocean. engine that has propelled our nation’s econ- a ‘‘Career Day’’ session at a local elementary Boatswain Mate 1st Class Stephen Lyons, omy to extraordinary heights over the last dec- school where we both were presented before 38, operated one boat that rescued the crew. ade. a class of fifth graders. Captain Burciaga was The rescue boats were launched from the Mr. Speaker, in addition to reductions in in- dressed in uniform; I, Deputy Attorney General destroyer USS Russell after the jet crashed terest rates and balancing the budget, one of on its way to bomb targets in Afghanistan. Becerra, wore my suit. There was no contest: the most important things the Federal Govern- The $280 million bomber went out of con- he glittered, I gawked. He told the kids of his ment can do to increase business investment, trol and fell into the ocean about 60 miles battles with fire, I battled to keep their eyes on in my view, is to accelerate the depreciation north of Diego Garcia after taking off from me. It would not surprise me if some of those the British island, government sources re- schedule for business purchases. Depreciation young students today are firefighters. ported. schedules reflect the Federal Government’s Chief Burciaga has a passion for service It was the first manned, fixed wing U.S. own somewhat arbitrary calculation of what is and a devotion to our youth. As President of aircraft lost in the Afghanistan campaign. the economic life of capital. Accelerating the Crew members ejected from the plane at the United Hispanic Scholarship Fund he has depreciation allowance for new capital invest- 15,000 feet and were in the water about two helped raise $500,000 to make the dream of ments provides a direct and immediate incen- hours during the night. college a reality for more than one thousand tive for businesses to build factories, purchase Lyons, who is on the USS Russell, was driv- students. He volunteers his ‘‘spare time’’ to ing one search and rescue boat that re- new equipment, and generally expand oper- support his brethren internationally, delivering sponded to the crash. ations. This inevitably creates jobs and results surplus but valuable firefighting vehicles and All four crew members were in good condi- in a long term improvement in the productivity equipment and teaching the latest fire fighting tion, said officials. rates of American industry. Additionally, unlike Lyons Joined the Navy following his grad- techniques to firefighters in countries like Mex- many other proposed tax incentives, acceler- uation from Meyers High School in 1983. ico. ated depreciation is directly tied to business During his Navy career, he has served But, without question, his greatest passion aboard the USS Guam for five years as well investment. A business-person can not enjoy and devotion, which has earned him our undy- this tax incentive unless he or she commits to as the USS Savannah. He has served in Bei- ing respect and affection, belongs to his fam- rut, Somalia and the Gulf War. He has also a capital expenditure. ily. Ana Burciaga has fought every one of her completed several six-month tours of sea Mr. Speaker, it is for these reasons, I firmly husband’s fires. In her eyes you see the val- duty in the Mediterranean Sea and the In- believe that the long term economic benefits ues that have made the Burciaga family so dian Ocean. of accelerated depreciation far outweigh the strong. Ana and Jesus and their five accom- Lyons was responsible for collecting per- immediate revenue loss consequences of any sonal items from sailors on the USS Guam as plished daughters—Elenor, Catherine, Luz, such tax cut. It is my hope than in the 2002 well as the embassy personnel during the Natalie and Sarah—have every right to be session of the 107th Congress we will pass evacuation of the embassy in Somalia. proud today. into law an acceleration of the depreciation al- Aside from operating search and rescue Mr. Speaker, on this day, December 20, craft, Lyons drives the captain’s launch, a lowance. 2001, family, friends and colleagues gather at boat used to shuttle the ship’s captain to and f Descanso Gardens in La Ca«nada, Flintridge, from shore. IN RECOGNITION OF JESUS California to witness the official appointment of He has also served at Norfolk, Va.; Pax River, Md.; Kings Bay, Ga., and Pearl Har- BURCIAGA Jesus Burciaga as Deputy Fire Chief for the bor. County of Los Angeles and to celebrate 28 While at Pax River, he worked in the test- HON. XAVIER BECERRA years of courage, integrity, and consummate ing of hovercraft and with the David Taylor OF CALIFORNIA professionalism. It is with great pride that I ask Research in Norfolk. IN THE HOUSE OF REPRESENTATIVES my colleagues in this beloved House of Rep- He is the son of Harold and Jean Lyons, 160 resentatives to join me today in saluting Jesus Wood St., Wilkes-Barre. Boatswain Mate 1st Thursday, December 20, 2001 Burciaga, an exceptional man and cherished Class Lyons is married to the former Sharon Mr. BECERRA. Mr. Speaker, it is with ut- friend. Gula, formerly of Edwardsville. They have two sons, Stephen, 13, and Justin, 11, and the most honor and pleasure that I rise to recog- f nize Mr. Jesus Burciaga, a gifted leader and family resides in Pearl Harbor. His grand- WILKES-BARRE NATIVE HONORED mother, Lucy Machinshok, resides in the Po- outstanding firefighter from La Habra, Cali- cono area. fornia. Today, Jesus achieves another mile- FOR ROLE IN BOMBER CREW His mother said he is currently on his stone in an already storied career. In the proc- RESCUE fourth six-month cruise since joining the ess, he affirms our belief that devotion, deter- Navy in 1984. He is set to return after Easter. mination, and discipline still pay handsome HON. PAUL E. KANJORSKI Although his exact location is classified, she said she keeps in touch with her son dividends in life. OF PENNSYLVANIA through e-mail. This 20th of December, the Los Angeles IN THE HOUSE OF REPRESENTATIVES County Fire Department elevates Jesus to the ‘‘He e-malls me three times a week,’’ she rank of Deputy Fire Chief, third in command of Thursday, December 20, 2001 said, adding it can be difficult not knowing where he is. the second largest fire protection agency in Mr. KANJORSKI. Mr. Speaker, I rise today ‘‘You worry and wonder and thank God America. His promotion highlights a career of to call the attention of the House of Rep- when you hear from him that it’s good exceptional public service which began more resentatives to the dedication of the team from news,’’ she said. ‘‘He can’t tell us where he is than a quarter century ago. the USS Russell who rescued the four mem- or even where he’s going.’’

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00044 Fmt 0666 Sfmt 0634 E:\CR\FM\A20DE8.049 pfrm07 PsN: E20PT1 December 20, 2001 CONGRESSIONAL RECORD — Extensions of Remarks E2383 Mrs. Lyons explained that the long months TRIBUTE TO MR. MITCHELL He had style in his clothes, in his cars, in away from his family are accepted as part of ROBINSON his hats, in his dancing, in the showrooms at her son’s job. Modern Supply, in the ‘‘Pitch from Mitch’’ sta- Although it can be difficult to be gone for HON. JOHN J. DUNCAN, JR. tionary, in the incentive trips for his customers extended periods of time, she said her son is that he so tediously planned and enjoyed. He doing what he loves. OF TENNESSEE bought things in a big way whether it was a ‘‘He’s happiest when he’s on the ocean. IN THE HOUSE OF REPRESENTATIVES truckload of sinks, shirts for himself, or There’s a certain calm about it that he en- Thursday, December 20, 2001 joys while he’s on the ship,’’ she explained. smoked turkeys for gifts. He was able to Mr. DUNCAN. Mr. Speaker, on December charm about anyone he met, particularly the Mr. Speaker, I am pleased to call to the at- 10th my good friend Mr. Mitchell Robinson females. He had an appetite for food and peo- tention of the House of Representatives the passed away after a lengthy illness. He was ple that was enormous. service to our nation of the crew of the USS someone who made a difference and dreamed Mr. Robinson was a leader, perhaps not al- Russell, including Boatswain Mate 1st Class the American Dream, and he truly represented ways knowing where he was going, but know- Stephen Lyons, as well as all the military per- what this country is all about. The following is ing he was going somewhere. His devotion to sonnel from Northeastern and Central Penn- a tribute to my friend. his business was inspiring. His family’s con- sylvania, and I send my best wishes to them Mr. Robinson, a Knoxville native for 77 tributions to the religious community in time and their families. years, founded Modern Supply Company in and money are in the record books. 1949. He devoted his life to family, business Members of the community called on him f and philanthropy. He was married to Natalie when something was needed for those who INTRODUCTION OF THE ELEC- Levison Robinson for 50 years. were less fortunate. He was always there. He TRONIC MARKETPLACE OWNER- Mr. Robinson was a lifelong member of was generous to a fault and has set a stand- SHIP DISCLOSURE ACT Heska Amuna Synagogue and was a leader ard for all of us to follow. as chairman and longtime board member. He In a Yom Kippur Sermon several years ago, also chaired the Knoxville Jewish Federation. Rabbi Joseph Weinberg, said: HON. CAROLYN B. MALONEY He established the Sylvia Robinson Memorial ‘‘Always we are commanded to seize the OF NEW YORK Fund and endowed the A.J. and Sylvia Robin- day, to create a life which will be remembered son Chapel at the synagogue in memory of IN THE HOUSE OF REPRESENTATIVES as a blessing. Not how long, but how well did his parents. I live? Not how many honors did I obtain, but Thursday, December 20, 2001 Mr. Robinson, who served as president of how honorable was my life. Not how many Mrs. MALONEY of New York. Mr. Speaker, the Southern Wholesalers Association and a things did I acquire, but how much was I able today I introduced the Electronic Marketplace Director of the American Supply Association, to give.’’ Ownership Disclosure Act. This legislation re- pioneered the concept of bath and kitchen This quote is very fitting for the life of Mitch- quires operators of Internet sites that match showrooms in East Tennessee. ell Robinson. I would like to offer my deepest buyers and sellers to disclose whether they He was also active in the Knoxville business sympathy to the Robinson family. Our Nation have financial relationships with parties in- community, where he was a charter member and our community have suffered a great loss. volved in transactions that take place on their of the Midtown Sertoma Club. He was a loyal f sites. Some Internet sites portray themselves supporter of the University of Tennessee, con- tributing to the Departments of Judaic Studies HONORING DAVID SAYLES as disinterested third parties that simply host ENGLISH a site matching buyers and sellers. The Elec- and Athletics. A World War II veteran, Mr. Robinson tronic Marketplace Ownership Disclosure Act served as a flight controller in the U.S. Air requires companies hosting such sites to af- HON. DOUG OSE Corps Radar Unit in the Pacific. firmatively disclose corporate relationships OF CALIFORNIA His beloved family also includes children they have with companies offering goods or IN THE HOUSE OF REPRESENTATIVES Rabbi Rayzel and Dr. Simcha Raphael of services on their site. Thursday, December 20, 2001 Philadelphia, A.J. Robinson and Dr. Nicole Many consumers now rely on Internet mar- Ellerine of Atlanta, and Pace and Karen Rob- Mr. OSE. Mr. Speaker, I rise today to honor ketplace sites to compare prices and buy inson of Knoxville; grandchildren Yigdal and David Sayles English of Arlington, Virginia, as goods. They should have the right to know Hallet Raphael; Micaela, Ethan and Nathaniel he joins the Arlington County Police Depart- who really owns an Internet exchange pur- Robinson, and Asher and Eli Robinson; sister ment. porting to provide a neutral marketplace. The and brother-in-law Fay and Bob Gluck of Throughout most of his adult life, David Electronic Marketplace Ownership Disclosure Boynton Beach, Fla.; brother-in-law Gilbert English has devoted himself to the safety and Act will enable consumers to make more in- Levison of Knoxville; brother- and sister-in-law protection of others. A 1989 graduate of York- formed purchasing decisions. In the long term, Jarvin and Deanne Levison of Atlanta; and town High School in Arlington, Virginia, Mr. the continued growth of Internet commerce many nieces, nephews, cousins and friends. English attended Western Maryland College depends on the medium’s integrity as a mar- Mitchell spent most of his 77 years in Knox- prior to serving in the United States Army. His ketplace. This legislation will support the Inter- ville, Tennessee. He was part of a generation service in the military, most notably at Fort net’s continued growth by increasing public that had a significant impact on Knoxville and Greely, Alaska and Fort Detrick, Maryland, confidence. the surrounding area. He came back from gave him a unique insight into helping his fel- There is a tangible need for this legislation. World War II with no money, no business, and low man. Last year, Money magazine disclosed that a limited education. But he had enduring self- Following his honorable discharge from the Quickenlnsurance.com, a site owned by Intuit confidence, determination, and a desire for ac- military, Mr. English put his medical knowl- Corporation, claimed to provide the ‘‘best complishment that stayed with him his entire edge to work as an Emergency Medical Tech- prices from America’s top insurance and loan life right up to the end. nician (EMT) while earning his paramedic’s li- companies.’’ However, according to the article, He was part of that ‘‘greatest generation’’ cense. Shortly after earning his license, David Quicken does not disclose on their site that that we read so much about today, and who returned to his hometown to work as a fire- they receive a commission from every insur- Tom Brokaw has made so famous. Men and fighter at Fire Station #8 in Arlington County, ance policy they arrange. women who have impacted and enriched all of Virginia. As it has been his lifelong dream to The American people deserve honesty, our lives over the last half of the 20th century. work in law enforcement, David joined the Ar- whether they are shopping online or in person. But as many of you know, and as Sinatra lington County Police Department earlier this For too long, some Internet retailers have sings, Mitch did it his way . . . whether it was year. avoided telling consumers the truth about who in his business, in his synagogue, or the var- Tomorrow morning, December 21, 2001, they are owned by and who benefits for spe- ious other circles he traveled. Everyone was a David Sayles English will graduate from the cial arrangements that may do harm to con- part of his empire, family, friends, customers, Arlington County Police Academy, officially be- sumers. The Electronic Marketplace Owner- and employees alike. He shared the good and coming a Police Officer in Arlington, Virginia. ship Disclosure Act let American consumers the bad with everyone. He joins an illustrious group of men and know the whole truth. This bill is good for con- The child of immigrant parents, he created women throughout our nation of whom I am sumers, it is good for businesses, and it will his own style, his own flair in everything he did proud. Let me extend my personal thanks to benefit the Internet. and everybody he touched. those who serve in uniform. If the efforts of

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00045 Fmt 0666 Sfmt 9920 E:\CR\FM\A20DE8.049 pfrm07 PsN: E20PT1 E2384 CONGRESSIONAL RECORD — Extensions of Remarks December 20, 2001 our civil servants taught us anything on Sep- accomplished residents of the District of Co- rowing and clean audits has been achieved. tember 11, 2001, it is that this badge is a sym- lumbia. The huge task of restructuring and reforming bol of heroism and honor. I know that he will This year, the Authority completed six years each city agency is proceeding with many no- wear it with pride. that have brought the District of Columbia out table improvements. The Authority, working f of the worst financial crisis in a century. To with elected officials has improved the most cope with this crisis, Congress passed the critical agencies, including public safety and HONORING COPELAND AND WI- District of Columbia Financial Responsibility education, where resident concern was pro- NONA GRISWOLD ON THEIR 50TH and Management Assistance Authority Act in nounced. These financial and management WEDDING ANNIVERSARY 1995. The city had followed several others— improvements are among the many rich fea- Philadelphia, New York, and Cleveland among tures of the Authority’s legacy, HON. JEFF MILLER them—to junk bond status indicating an inabil- However, the Authority also left an important OF FLORIDA ity to borrow, or insolvency. As with the cities warning not only for the city but for Congress IN THE HOUSE OF REPRESENTATIVES that preceded them, the District required a about the future of the city. Despite remark- ‘‘control board’’ or Authority in order to con- able city improvements and the Revitalization Thursday, December 20, 2001 tinue to borrow the necessary money to func- Act’s assumption of $5 billion in pension liabil- Mr. MILLER of Florida. Mr. Speaker, it is my tion. Unlike other cities, however, the nation’s ity and some state functions, the Authority distinct pleasure to announce to you and the capital reached this point not only because of warned of a structural deficit not of the city’s other members of this distinguished body, that local mismanagement, but also because it is a making that urgently needs congressional at- on December 21, 2001, my in-laws, Copeland city without a state and a city that carried the tention. Next session, I will introduce a bill to and Winona Griswold of Chumuckla, Florida, full complement of state functions and costs. meet the structural problem the Authority has will celebrate their 50th wedding anniversary. To the credit of the prior administration of left Congress to remedy. Copeland and Winona were married on De- President Bill Clinton, which designed a pack- Today, however, let us be grateful that the cember 21, 1951. They met in Chumuckla, age relieving the city of the most costly state most difficult part of the job of revitalizing the Florida during grade school and later became functions and of the Congress, which ap- nation’s capital has not been left to Congress. high school sweethearts and valedictorians of proved it, the District has had a remarkable re- It has been done by nine extraordinary citi- their senior classes. They have lived in covery. zens who asked nothing from Congress, not Chumuckla these past 50 years, and have Working countless hours with the Mayor and pay, and not even praise. Yet, considerable shared their love with their children Marty, the City Council, the Authority helped the Dis- praise is the least they are due from the Con- Von, Vicki and Paul, and their many grand- trict achieve investment grade bond status by gress of the United States. It is praise and children and great grandchildren. the third year of the control period, rather than honor that I ask this House to give to these The Griswolds were agricultural pioneers in in four years; create a budget reserve of $150 nine Washingtonians today from a grateful the State of Florida. They were named the million and left the city well on its way to cre- Congress and a grateful nation. Farm Family of the Year for Santa Rosa ating a 7-percent cash reserve three years THE DISTRICT OF COLUMBIA FINANCIAL County in 1985, and Copeland was inducted ahead of schedule; repay all borrowings from MANAGEMENT AND ASSISTANCE AUTHORITY into the Florida Agriculture Hall of Fame in the U.S. Treasury; eliminate the accumulated FIRST AUTHORITY February of this year. deficit; and post four years of balanced budg- Andrew Brimmer (Chair) Their love story is one that is still in ets with surpluses, two years ahead of the Dr. Andrew Brimmer served as the first progress. I can tell you firsthand their love for congressional mandate to do so. chair of the Authority. Mr. Brimmer, the each other has grown even stronger through Elected officials, who continued to run the first African American to serve on the Fed- the years and serves as an inspiration to us city throughout, deserve credit for this im- eral Reserve Board, has long been recognized all. provement. However, they would doubtlessly as a distinguished economist. Among his Love has flourished between these two agree that more than any single group or indi- many posts and achievements is service as hearts, and I wish them continued happiness viduals, the Financial Authority deserves the an economist at the Federal Reserve Bank of New York and posts teaching economics at and love for years to come. credit for the four-year rapid recovery of the Michigan State University, the Wharton On behalf of the United States Congress District. It was the credibility of the individuals School, the University of Pennsylvania, and and the people of Northwest Florida, I extend on the Authority and the extraordinary job they other colleges and universities. Dr. Brimmer our sincere congratulations to Copeland and did that enabled the District to borrow in its is the President of Brimmer and Company. Winona Griswold, whose love stands as a own name. The city never had to have the Au- Dr. Brimmer became the chair of the Au- shining example to an entire community. thority borrow for the District. It was the Au- thority when the city was at its lowest point thority that worked hand in glove with D.C. of financial and management disrepair. He f led the Authority as it took on very large elected officials to assure that the finances and intractable fiscal and operational prob- IN HONOR OF THE ACHIEVEMENTS and the management of the D.C. government OF THE DISTRICT OF COLUMBIA lems and managed them with skill and deter- would proceed apace to improve. And it was mination. FINANCIAL RESPONSIBILITY AND the Authority that gave Congress the con- Stephen Harlan (Vice Chair) MANAGEMENT ASSISTANCE AU- fidence that the city would be ready for the THORITY MEMBERS Stephen Harlan served as vice chair for the sunset of the Authority on September 30, first term of the Authority. He was the chair 2001. of H.G. Smithy Company, a specialized real HON. ELEANOR HOLMES NORTON It would be difficult to overestimate the im- estate firm providing mortgage banking, fi- OF THE DISTRICT OF COLUMBIA portance of these Washingtonians to the re- nance and investment, and multi-family property management services. He pre- IN THE HOUSE OF REPRESENTATIVES covery of the city or the difficulty of the work they were called upon to do—and did. The viously served as vice chairman of KPMG Thursday, December 20, 2001 Peat Marwick. District could never have purchased from ex- Mr. Harlan successfully led the Authority’s Ms. NORTON. Mr. Speaker, as Congress perts of their special competence what each public safety revitalization at a time when prepares to end this session, unique in our gave to the city as a contribution of unique ex- crime was the primary concern of District history, I ask the House to recognize the work pertise, endless hours, extraordinary effort, residents and officials. of nine Washingtonians who have just com- and plain, priceless wisdom. Joyce Ladner pleted a uniquely important public service for The city the Authority found had been Dr. Joyce Ladner has served as Interim our nation’s capital, and therefore for our na- wracked with many years of overspending and President of Howard University, Vice Presi- tion. The nine served the District of Columbia an accumulated deficit as well as a dysfunc- dent for Academic Affairs, and professor of on the District of Columbia Financial Respon- tional government of city agencies. The city sociology at the Howard University School sibility and Management Assistance Authority. they have left has had four straight years of of Social Work. She is currently a Senior They are the two chairs, Andrew Brimmer and balanced budgets plus surpluses and a much Fellow of Government Studies at the Brook- ings Institution. Alice Rivlin, the vice chairs, Stephen Harlan improved fully functioning city government. At Dr. Ladner successfully concentrated on and Constance Berry Newman, and the mem- the end of the last fiscal year, the District had improving public schools when education bers, Eugene Kinlow, Darius Mans, Joyce a larger surplus than Maryland and larger than was the primary concern of the Authority. Ladner, Edward Singletary, and Robert Wat- Virginia, which had no surplus. The bottom Constance Berry Newman kins. They are very distinguished Americans line that is expected of every jurisdiction of liv- Constance Berry Newman, one of the most and among the most distinguished and most ing within its budget, credit to assure bor- versatile officials in the public life of the

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00046 Fmt 0666 Sfmt 0634 E:\CR\FM\A20DE8.052 pfrm07 PsN: E20PT1 December 20, 2001 CONGRESSIONAL RECORD — Extensions of Remarks E2385 country, served as vice chair during the sec- Federal Reserve System Board of Governors. OBITUARY OF EVA LOU ond term of the Authority and is the only He is currently Country Director at the BILLINGSLEY RUSSELL member that served both terms. She has World Bank for several large African na- been appointed by Presidents of the United tions. States four times to major federal posts and Dr. Mans’ strong institutional and aca- HON. EARL F. HILLIARD has been a Woodrow Wilson Visiting Fellow, demic financial background was very useful OF ALABAMA and a member of the adjunct faculty at the to the Authority’s work on D.C.’s finances. IN THE HOUSE OF REPRESENTATIVES Kennedy School at Harvard University and a Robert Watkins, III Thursday, December 20, 2001 trustee of the Brookings Institution. Ms. Newman has served as Undersecretary of the Robert Watkins, a distinguished lawyer, Mr. HILLIARD. Mr. Speaker, Eva Lou Smithsonian Institution, Director of the Of- has been a partner at Williams and Connolly Billingley Russell, also affectionately known as fice of Personnel Management, and consult- since 1977. His background includes leader- ‘‘Grandma Rap’’, 82 of Birmingham, died on ant to foreign governments and inter- ship posts in the Office of the U.S. Attorney Friday, December 14, 2001. Mrs. Russell was national organizations, among other posts. for the District of Columbia when he was an Assistant U.S. Attorney and work in the the owner of Fraternal Cafe« in downtown Bir- Ms. Newman is currently the Assistant Ad- mingham for more than 20 years. She was a ministrator for the Bureau for Africa for the Civil Rights Division of Justice Department. Mr. Watkins successfully worked on justice Civil Rights activist most noted for feeding the U.S. Agency for International Development. local as well as national civil rights movement Ms. Newman successfully led a number of issues and the Metropolitan Police Depart- areas for the Authority, ranging from public ment during a period when the Department for many years. In addition, Mrs. Russell oper- schools to procurement. underwent substantial reform and crime was ated feeding programs for the homeless and reduced. Edward Singletary poor, years before, attention was given to this problem in our communities. Edward Singletary is a retired business ex- She spent considerable time encouraging ecutive with experience in accounting, budg- f young people to get an education and to stay eting, financial planning, finance operations MONROE TOWNSHIP CELEBRATES and telecommunication. He worked in the away from drugs. Many times this message telecommunications industry for nearly 30 THE CAREER OF RETIRING was ‘‘rapped’’ to the children. It is not uncom- years. During his business career, he served COUNCIL VICE PRESIDENT LEO- mon to pick up a magazine and find one of the city as chair of the Washington Conven- NORA FARBER her poems or to hear a child reciting one of tion Center, a member of the D.C. Retire- her poems in a church or at a school through- ment Board, and President of the Wash- out the city. She is the author of the book ington Convention and Visitors Association. HON. RUSH D. HOLT OF NEW JERSEY ‘‘Golden Threads’’—A Collection of Poems While on the Authority, Mr. Singletary About About the Black Family. She also has successfully worked on government-wide ad- IN THE HOUSE OF REPRESENTATIVES three other manuscripts of books that are yet ministrative issues for the city, including Thursday, December 20, 2001 technology and procurement. unpublished. Mrs. Russell has received numerous awards SECOND AUTHORITY Mr. HOLT. Mr. Speaker, I rise today in rec- ognition of retiring Monroe Township Council throughout her life. A few of these include: Alice Rivlin (Chair) Channel 13 Hometown Hero—1991, WENN Dr. Alice Rivlin, one of the country’s most Vice-President, Leonora Farber. For many years, Councilwoman Farber has Radio Favorite Person, Beautiful Activist respected economists, served as chair of the Award, SCLC Humanitarian Award, Crystal Di- Financial Authority for its second term. She made invaluable contributions to the Township has had one of the most distinguished public of Monroe and to the State of New Jersey amond Award for Community Service; Awards service careers in the nation as Vice Chair of through her exceptional commitment to civil from: University of Alabama, Birmingham, the Board of Governors to the Federal Re- service, education, and the arts. Lawson State Community College, Booker T. serve, Deputy Director, then Director of the Throughout her career Lee Farber has self- Washington Business College, and Miles Col- Office of Management and Budget, and as the lessly contributed her time and energy to her lege. She has also received numerous awards first director of the Congressional Budget Of- from elementary, middle and high schools in fice, among others. Dr. Rivlin is currently a community and has embodied the spirit of public service that we in Congress hold so the Birmingham area. Senior Fellow in Economic Studies at the She was very active at Saint Joseph Baptist dear. She began her career of service as a Brookings Institution. Church where she has been a member for a public school teacher after receiving her Mas- Dr. Rivlin was the chair of a landmark number of years. Most recently, she was a commission on the District government and ters Degree in Secondary School Administra- deaconess, Chair of the Pastor’s Aide Board, its finances that bears her name and that tion and Supervision from Hofstra University. and worked with the Missionary Society, predicted the problems of the city years con- Her unwavering support of education in New Homeless Committee, Willing Workers and siderably before they resulted in the crisis Jersey continued when she became the Chair that brought on the need for the Authority served in numerous other capacities of leader- she led. When Dr. Rivlin became chair of the of the New Jersey Training School for Boys ship throughout her membership at the Authority in September 1998, she led the de- Citizens Review Board. church; including Vice President of the St. Jo- tailed financial work on government oper- In her efforts to advance the interests of her seph Day Care Center, Youth Supervisor and ations necessary to manage a careful transi- neighbors, Councilwoman Farber has also Chair of the Deaconess Board. tion of control of the District to the Mayor served as Whittingham’s representative to the Mrs. Russell leaves the following survivors: and City Council. Adult Communities Advisory Board, as a Three sons: Joseph Russell (Ida), Sac- Constance Berry Newman (Vice Chair—see member of the Executive Board of Greenbriar ramento, CA., Leonard Russell (Juanita)-Bir- above) at Whittingham Residents Association, and of mingham, Carl Russell (Constance), Eugene Kinlow the Executive Board of U.F.T. Retirees. Pembrook Pines, FL.; Two daughters-Bir- Eugene Kinlow is a native Washingtonian Lee Farber has passionately supported mingham, Sandra Russell Jackson, Carolyn with exceptionally strong community ties, women’s rights and has provided a voice to Russell Todd (Walter); son-in-law-Jerome including service as a former chair of the the concerns of the disabled as a member of D.C. Board of Education. He is a retired Dep- Huguley, Atlanta, GA. And a daughter-in-law, uty Assistant Secretary for Human Re- the League of Woman Voters and as Council Rosa Mae Russell, Birmingham; Two brothers sources in the Department of Health and representative to the Americans with Disabil- and one sister from Cleveland, OH: Richard Human Services and a recipient of the high- ities Committee. Billingsley, Simon Billingsley (Eula) and est award for federal executives, the Presi- An outspoken advocate of environmental Johnnie Billingsley; a sister Hattie Riddle dential Distinguished Rank Award. He pre- issues, Councilwoman Farber is the former (Will), Knoxville, TN; a sister-in-law, Margaret viously served as a staff statistician at the chairperson of Monroe’s Environmental Com- Billingsley, Columbus, OH. Mrs. Russell also U.S. Commission on Civil Rights, and mission where she helped protect New Jer- had 17 grand children, 21 great grand chil- worked as the Housing Research Director. sey’s air, water, and land from pollution and Mr. Kinlow’s 30 years of community service dren, a God daughter and son and a host of in the Anacostia area led to his determined degradation. An arts patron and enthusiast, nieces, nephews, relatives and friends. work as the Authority’s lead member on re- Councilwoman Farber also currently serves as The, Home Going Service for Mrs. Russell vising health care for the District. Council Liaison to the Cultural Arts Commis- will be Saturday, December 22, 2001 at Saint Darius Mans sion. Joseph Baptist Church, 500 9th Avenue North, Dr. Darius Mans was a manager for com- Lee Farber has led a distinguished career of Birmingham. Roberts Central Park Chapel di- pensation policy and administration at the public service in New Jersey that sets an im- recting. Visitation is scheduled for Thursday, World Bank. Prior to his work at the World portant example for us all. I hope my col- December 20, from 11 a.m. to 7 p.m. and Fri- Bank, Dr. Mans was an economist for the leagues will join with me in honoring her. day, December 21, from 4 to 9 p.m.

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00047 Fmt 0666 Sfmt 0634 E:\CR\FM\A20DE8.056 pfrm07 PsN: E20PT1 E2386 CONGRESSIONAL RECORD — Extensions of Remarks December 20, 2001 YOUTH COURT: CIVIC ENGAGE- not as a politician but ‘‘an apple peddler work- To maintain and strengthen that unity for the MENT AND CHARACTER EDU- ing for the people.’’ work that lies ahead, we need to find new CATION THROUGH JUVENILE AC- I would like to thank Ferris Belman for a job ways to solve conflict and to overcome the COUNTABILITY well done. His selflessness and devotion to his suspicions that arise from differences in cul- constituents and Virginia are to be com- ture, race, religion, economic condition and HON. J. DENNIS HASTERT mended, and his service will be missed. political ideology. Establishment of shared tra- OF ILLINOIS f ditions that promote intercultural contact will help. IN THE HOUSE OF REPRESENTATIVES STATEMENT BY THE HONORABLE On December 15, 2000, the 106th Congress Thursday, December 20, 2001 SOLOMON P. ORTIZ ON H.R. 3525 unanimously approved a measure that calls Mr. HASTERT. Mr. Speaker, I rise to praise for annual worldwide commemoration of the the efforts of the Constitutional Rights Founda- HON. SOLOMON P. ORTIZ successful ‘‘One Day in Peace January 1, tion and the Constitutional Rights Foundation OF TEXAS 2000’’ with shared meals, inter-cultural ex- change, pledges of non-violence, and gifts to Chicago. Their work encourages schools, IN THE HOUSE OF REPRESENTATIVES youth programs, attorneys, judges, and police the hungry. departments to work together to form and ex- Thursday, December 20, 2001 One Day in Peace provides an unparalleled pand diversionary programs. Mr. ORTIZ. Mr. Speaker, the Rio Grande example of global cooperation that is both in- These programs, known as Youth Courts, Valley thanks the House for this economic structive and inspiring. On that first day of the are where juveniles, under the supervision of stimulus package for the border***our new millennium several billion people and representatives from the education and legal economic opportunities were severely curtailed nearly every government in the world acted re- communities, determine sentencing for first this fall when the extension of a deadline to sponsibly, cooperatively and with astonishing time Juvenile offenders who are charged with obtain new border crossing cards was held up success to avert the combined threats of un- misdemeanors or minor infractions of school for three months. ruly crowds, terrorism and fears of Armaged- rules. The efforts of the House Border Caucus don—as well as feared panic and hoarding re- The program displays that as a sentencing have borne fruit with the inclusion of the ex- lated to expected computer failures. The option, community service can serve both the tension of the deadline to replace old Border ‘‘OneDay’’ movement, begun by children and offender and the community. Crossing Cards (BCCs) with new ‘‘laser eventually pledged by one hundred countries, 1000 organizations in 135 countries, 25 U.S. f visas.’’ This is the perfect Christmas present to the governors and hundreds of mayors worldwide TRIBUTE TO FERRIS BELMAN Southwest Border from the United States Con- surely helped. The result could be called the gress. world’s first deliberate day of peace. HON. JO ANN DAVIS In the aftermath of the September 11 ter- We believe this collective achievement by much of humankind is worth remembering and OF VIRGINIA rorist attack, the increased vigilance at the repeating each year. The United Nations Gen- IN THE HOUSE OF REPRESENTATIVES border has also translated into a rougher tone eral Assembly agrees. It recently adopted a Thursday, December 20, 2001 in the Congress with regard to what should have been a pro forma extension of the dead- resolution (56/2) inviting all Member States, Mrs. JO ANN DAVIS of Virginia. Mr. Speak- line. and all people in the world to celebrate ‘‘One er, I rise to pay tribute to a distinguished con- The Southwest border has seen extensive Day in Peace 1 January 2002, and every year stituent and public servant whose more than economic damage as a result of the deadline thereafter.’’ At this season, as we enjoy the time-hon- 30 years of service will come to a close at the not being extended, as expected, in Sep- ored holiday traditions of our separate faiths, end of this month. tember. let us also celebrate a new tradition with a Ferris Belman of Stafford County, one of the I encourage the Senate to expedite consid- simple, world-wide all-faith holiday observance jurisdictions within the 1st District of Virginia, eration of the bill since the House has over- (comparable to our American Thanksgiving) is a retired businessman who has devoted come the objections now. that demonstrates our mutual resolve to create much of his adult life to serving the people of As the Co-Chairman of the House Border a future world of peace and sharing. both the city of Fredericksburg and Stafford Caucus, I thank the House for including this The schoolchildren who brought the concept County. provision so important to the Rio Grande Val- of the ‘‘OneDay’’ holiday to Capitol Hill (some For 13 years he was a member of the Fred- ley. of the youngest and most energetic lobbyists ericksburg City Council and has served as a I am also pleased that the bill authorized we’ve seen) urge all Americans to celebrate member of the Stafford Board of Supervisors funding for additional staff and training to in- OneDay by pledging non-violence to one an- for 18 years, twice as a board chairman. He crease our border security. other on January first. They also ask us to was also just recently the President of the Vir- I am particularly pleased that the bill in- seek out someone of another culture and ginia Association of Counties. cludes a more complete monitoring program of share a meal together, then match or multiply Mr. Belman has served on numerous com- foreign students, as since September 11 it is the cost of that meal with a gift to the hungry mittees and commissions over the years and glaringly apparent that data and reporting at home or abroad, in tangible demonstration played a leading role in promoting economic gaps must be filled. growth and development in both in the city of our desire for increased friendship and and county. f sharing. Ferris is a man of great honesty and char- A HOLIDAY MESSAGE ABOUT We think these young peacemakers have a acter who has worked diligently on behalf of UNITY good idea. Happy holidays, both old and new! the people of Virginia. As Stafford County Ad- f ministrator C.M. Williams notes, Ferris Belman HON. HENRY J. HYDE INDUSTRIAL DEVELOPMENT BOND helped insure that Ferry Farm in Stafford, the PROMOTION ACT OF 2002 boyhood home of George Washington, would OF ILLINOIS be preserved intact. He was also largely re- HON. JOHN CONYERS, JR. HON. AMO HOUGHTON sponsible for the county’s acquisition of Gov- OF MICHIGAN OF NEW YORK ernment Island, the site of quarries that pro- IN THE HOUSE OF REPRESENTATIVES IN THE HOUSE OF REPRESENTATIVES vided the stone for construction of the United States Capitol building and the White House. Thursday, December 20, 2001 Thursday, December 20, 2001 Ferris Belman will leave office with the Mr. CONYERS. Mr. Speaker, in this holiday Mr. HOUGHTON. Mr. Speaker, I am grateful appreciation of the thousands of peo- season we are grateful for the familiar tradi- pleased to be joined by my colleagues, Mr. ple whose lives he has touched through his tions of each of our faiths that comfort us and NEAL and Mr. ENGLISH, in introducing the ‘‘In- service. He will be remembered as a public of- connect us with others. We are also thankful dustrial Development Bond Promotion Act of ficial who always found time to listen to the for the unprecedented unity of the Congress, 2002.’’ While retaining the dollar limit on the concerns of his constituents, and went the the country, and the larger global community tax-exempt issue itself, the bill broadens the extra mile to do all he could for those he rep- in its shared determination to aid the victims of pool of manufacturers who may be eligible to resented. Ferris, who once owned several gro- September 11, and to defeat the forces of ter- take advantage of the benefits of qualified cery stores, always said he thought of himself rorism. small issue bonds.

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00048 Fmt 0666 Sfmt 9920 E:\CR\FM\A20DE8.064 pfrm07 PsN: E20PT1 December 20, 2001 CONGRESSIONAL RECORD — Extensions of Remarks E2387 Qualified small issue bonds play an impor- is responsible for the ongoing management of vember 2002 general election. These are the tant role in creating and sustaining a vibrant the ever growing city-county public health pro- infamous ballots used in Florida and else- manufacturing sector in rural communities. grams. These programs include disease con- where. Today, however, the so-called ‘‘$10 million trol, preventive and environmental health and H.R. 3295 also creates a bipartisan Election limit’’ impedes many growing manufacturers medical services. Assistance Commission, which is intended to from taking advantage of the benefits of quali- Harold is a proven problem solver. He is a be a national clearinghouse for information fied small issue bonds. This rule states that master at bringing people together—those and to review the procedures used for Federal the aggregate face amount of the issue, to- who need the service and those who provide elections. gether with the aggregate amount of certain it. His soft-spoken manner, intelligence and It authorizes $2.25 billion to help states im- related capital expenditures during a six-year broad experience in public health issues prove their voting systems. Specifically, this period beginning three years before the date makes Harold Bengsch an invaluable resource bill will help states establish and maintain ac- of issue and ending three years after that to his community and well respected through- curate voter lists; encourage voters to get out date, must not exceed $10 million. This $10 out the state of Missouri. and vote; improve voting equipment; improve million limit was imposed in 1978. It does not The unreasonable actions of government the processes for verification and identification consider changes in the economy, inflation, or bureaucrats are regularly criticized on the of voters; recruit and train poll workers; im- the increased costs associated with the con- Floor of the House. In this case I want my col- prove access for voters with disabilities; and fi- struction of manufacturing facilities. Even in leagues to know there is at least one bureau- nally, educate voters about their rights and re- small rural communities like those in the dis- crat who is doing an outstanding job of serving sponsibilities. trict, industrial development authorities have the public. I can assert without hesitation that Most importantly, H.R. 3295 will establish projects that routinely exceed this $10 million the public health of Springfield Greene County minimum federal standards for state election limit and are therefore ineligible for this type of and Southwest Missouri is better today be- systems regarding voter registration systems, financing. cause of the work, effort and vision of Harold provisional voting, the maintenance of accu- The Industrial Development Bond Promotion Bengsch. racy of voter registration records; overseas ab- Act of 2002 would permit capital expenditures f sentee voting procedures, permitting voters of $30 million to be disregarded in determining with disabilities to cast a secret ballot, and the aggregate face amount of certain qualified PERSONAL EXPLANATION allow voters an opportunity to correct errors. small issue bonds. Now, as I said earlier, this bill is not perfect. Given today’s global economy and proof HON. MICHAEL G. OXLEY In fact many well-respected organizations in that U.S. manufacturers are not adverse to OF OHIO the civil rights community oppose this legisla- building and manufacturing offshore, it is most IN THE HOUSE OF REPRESENTATIVES tion. I understand and share some of their important that the calculation of the limit be frustrations. However, I believe that by pass- Thursday, December 20, 2001 changed. Across the country, manufacturing ing this bill today, we can move the process jobs are declining. The manufacturing sector’s Mr. OXLEY. Mr. Speaker, I was absent from forward in hopes that the bill that comes back share of all U.S. jobs slipped from 17 percent the House floor during yesterday’s rollcall from the Senate will have many improve- ten years ago to 13 percent today. Small issue votes on H. Res. 320, H.R. 3529, and the mo- ments. bonds are a valuable tool to local economic tion to recommit H.R. 3529. Had I been I commend my colleagues Mr. NEY of Ohio development authorities and go a long way to- present, I would have voted ‘‘aye’’ on H. Res. and Mr. HOYER of Maryland for their hard work ward creating and maintaining investment in 320 and H.R. 3529, and ‘‘nay’’ on the motion in crafting this legislation. I encourage them, manufacturing facilities in communities to recommit H.R. 3529. however, to work with Mr. CONYERS of Michi- throughout our country. f gan and Senator DODD to ensure that if there We encourage our colleagues to join us in is a conference on this bill, we can vote for an H.R. 3295, HELP AMERICA VOTE cosponsoring this legislation. even better bill. ACT f Vote yes on H.R. 3295. f HAROLD BENGSCH AWARDED 2001 HON. TOM UDALL HUMANITARIAN OF THE YEAR OF NEW MEXICO PUBLIC HEALTH SECURITY AND IN THE HOUSE OF REPRESENTATIVES BIOTERRORISM RESPONSE ACT HON. ROY BLUNT Thursday, December 20, 2001 OF MISSOURI HON. JOHN SHIMKUS IN THE HOUSE OF REPRESENTATIVES Mr. UDALL of New Mexico. Mr. Speaker, OF ILLINOIS today, the House is considering H.R. 3295, IN THE HOUSE OF REPRESENTATIVES Thursday, December 20, 2001 the ‘‘Help America Vote Act of 2001,’’ an elec- Mr. BLUNT. Mr. Speaker, I rise to honor a tion reform proposal that seeks to address Thursday, December 20, 2001 dedicated civil servant who is working daily to many of the problems with our national elec- Mr. SHIMKUS. Mr. Speaker, as a sponsor improve the health of residents in the Seventh toral system. It has been over a year since the of H.R. 3448, which was introduced in the Congressional District of Missouri. 2000 Presidential Election, which brought House on December 11, 2001, I would like to Earlier this month, Harold Bengsch, the Di- many of these problems to light. Although it is include for the record the following description rector of the Springfield-Greene County, Mis- not perfect, this legislation is long over-due, of the bill: souri Health Department, was awarded the and I urge my colleagues to support its pas- Section 302 would provide the Secretary au- 2001 Humanitarian of the Year Award, estab- sage. thority to administratively detain any article of lished by the Community Foundation of the I won’t rehash the events of the 2000 Cam- food where FDA has credible evidence or in- Ozarks. The recognition comes with a $5,000 paign, as we are all too familiar with hanging formation indicating that such article ‘‘presents cash award that is to be divided between the chads, the flawed butterfly ballot, and the a threat of serious adverse health con- recipient and the charities of their choice. Mr. countless ballots in Florida—and elsewhere— sequences or death to humans or animals.’’ Bengsch, true to the reasons why he was so that were discarded and not tallied. That was The ‘‘serious adverse health consequences’’ honored, gave the entire amount to charity. a national tragedy. We’ve had a year to do standard, which is used consistently in Title III Harold received the award for three dec- something here in the House, and I am glad of this Act, relates to the situation in which ades of outstanding work improving the area’s we are finally acting. I hope we can use this there is a reasonable probability that the use public health. His dedication and vision were important legislation to address many of the of, or exposure to, a violative product will instrumental in cutting the number of children shortcomings of our national voting system. cause serious adverse health consequences testing positive for elevated blood lead levels H.R. 3295 is just a first step in our ongoing ef- or death. This corresponds to FDA guidance in Greene County from 28 percent to 15 per- fort to restore our constituents’ trust in the sys- pursuant to Title 21, Section 7.3 of the Code cent. Under his leadership, immunization rates tem of how we conduct our elected officials. of Federal Regulations. for children at two years of age has increased Our constituents deserve to have that trust re- The authority provided under Section 302 from less than 50 percent to more than 90 stored. may not be delegated by the Secretary to any percent. As director of the local health depart- This bill authorizes $400 million for one-time official less senior than the FDA district direc- ment, Harold has conducted research, had his payments to states or counties to replace tor in which the article is located. Under this studies published in professional journals and punch card voting systems in time for the No- authority, the article may be detained for a

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00049 Fmt 0666 Sfmt 9920 E:\CR\FM\A20DE8.065 pfrm07 PsN: E20PT1 E2388 CONGRESSIONAL RECORD — Extensions of Remarks December 20, 2001 reasonable period, not to exceed 20 days, un- particular items of food meet the standard for data). Nor does it permit access to marketing less the Secretary requires up to an additional detention. plans. 10 days. Because there is potential for food of Section 303 provides authority to the Sec- Under Section 304 the Secretary must take limited shelf life to be detained, the ‘‘reason- retary to debar from importing articles of food, appropriate measures to prevent the unauthor- able period’’ may, depending upon the perish- any person that is convicted of a felony relat- ized disclosure of trade secret or confidential ability of the food, be significantly shorter than ing to food importation, or any person that re- information obtained by the Secretary pursu- 20 days. The Secretary is required to institute peatedly imports food and who knew, or ant to this section. The Secretary shall ensure rulemaking to establish expedited procedures should have known, that the food was adulter- that adequate procedures are in place to en- for the detention of perishable foods, such as ated. This section would authorize debarment sure agency personnel will not have access to fresh produce, fresh fish and seafood prod- following a felony conviction regarding food records without a specific reason and need for ucts. The Secretary should promptly complete importation. In the great majority of situations such access, and that possession of all copies that rulemaking. permissive debarment authority will be em- of records will be strictly controlled, and that Within 72 hours of filing an appeal the Sec- ployed in situations involving a felony convic- detailed records regarding all handling and ac- retary is required to provide opportunity for an tion. In addition, this section includes authority cess to these records will be kept. informal hearing and render a final decision that would allow debarment of a person with- Section 305 requires all facilities (excluding regarding the appeal. The Secretary’s decision out a relevant criminal conviction. This author- farms) that manufacture, process, pack or hold regarding the appeal is subject to judicial re- ity is intended to bolster efforts to deter bioter- food for consumption in the United States to view consistent with the Administrative Proce- rorism. The Secretary should primarily use this file with the Secretary, and keep up to date, a dure Act, Title 5, Section 706, of the United authority to debar bad actors that repeatedly registration that contains the identity and ad- States Code. There is great need for timely re- and knowingly import food that seriously dress of the facility and the general category view of an administrative detention order and threatens public health. of food manufactured, processed, packed or the Secretary should assure that appeals are Most forms of adulteration do not pose a se- held at the facility. This section authorizes the resolved in a timely manner. The value of per- rious threat to public health and many forms of Secretary to exempt certain retail establish- ishable foods may be lost entirely, and even adulteration pose no public health threat at all. ments only if the Secretary determines that the value of foods that have considerable shelf When food adulteration occurs, food importers the registration of such facilities is not needed life may be reduced substantially if administra- are often innocent purchasers of the food. for effective enforcement. The purpose of reg- tive and judicial review are inappropriately de- This debarment authority should not be used istration under this section is to authorize the layed. against innocent purchasers of food, nor is Secretary to compile an up-to-date list of rel- While an article of food is subject to admin- this authority to be used as an administrative evant facilities to enable the Secretary to rap- istrative detention, the Secretary may order shortcut to act against an importer where idly identify and contact potentially affected fa- that it be held in a secure facility. Detention of criminal prosecution is not sustainable. cilities in the context of an investigation of bio- the food in a secure facility is not a require- Section 304 provides the Secretary the au- terrorism involving the food supply. ment. The Secretary should ensure that the thority to inspect and copy all records relating Enforcement of Section 305 would be de- food would be held under commercially appro- to an article of food if the Secretary has cred- layed 180 days from the date of enactment, priate conditions of cleanliness, temperature, ible evidence or information indicating that an and this section requires the Secretary to take humidity and whatever other considerations article of food presents a threat of serious sufficient measures to notify and issue guid- are reflected in industry practice regarding health consequences or death to humans or ance within 60 days identifying facilities re- holding the article of food under detention. animals. This provision excludes farms and quired to register. This section also requires Conditions of the secure storage facility should restaurants and is subject to certain limitations the Secretary to promulgate adequate guid- not erode the safety or quality of a detained including limitations to ensure the protection of ance, where needed, to enable facilities to de- article. The Secretary should also take reason- trade secrets and confidential information. termine whether and how to comply with these able precautions to protect against an inappro- Section 304 authorizes the Secretary to registration requirements. The Secretary is en- priate release of a detained food. Secured issue a regulation requiring maintenance of couraged to utilize the notice and comment storage requirements should apply if there is a additional records that are needed to trace the process as an appropriate method for notifying reasonable apprehension that the article of de- source and chain of distribution of food, in potential registrants of their obligation to reg- tained foods are likely to be inappropriately re- order to address credible threats of serious ister and to receive advice and assistance leased. This section does not impose any obli- adverse health consequences to humans or from registrants on how best to develop a reg- gation on the owner of a detained food to bear animals. This provision excludes restaurants istration system that is both workable and the cost of the secure storage facility. and farms, and the Secretary is provided the cost-effective. In many instances, additional This section also permits the Secretary to authority to take into account the size of the steps may be needed since the notice and order a temporary hold for a reasonable pe- business when imposing any record keeping comment may not be adequate to inform small riod of time, but not longer than 24 hours, of requirements and tailor the requirements to businesses and other importers who may not food offered for import if an FDA official is un- accommodate burden and costs consider- have the resources or capabilities to research able to inspect the article at the time it is of- ations for small businesses. and track federal regulatory notices in a timely fered for import and where the Secretary al- Section 304 authorizes the issuance of reg- manner prior to the expiration of the 180-day ready has ‘‘credible evidence or information in- ulations to require the maintenance of so- enforcement bar. dicating that such article of food presents a called ‘‘chain of distribution’’ records that This section does not impose a registration threat of serious adverse health consequences would enable the Secretary to trace the fee, and calls for a one-time registration. In or death to humans or animals;’’ the same source and distribution of food in the event of other words, once a facility is registered it will standard employed for administrative detention a problem with food that presented a threat of only have to amend its original registration in under this section. The period of the hold is in- serious adverse health consequences or death a timely manner to reflect any changes. This tended to allow the Secretary sufficient time to to humans or animals. This authority may not section also allows and encourages electronic dispatch an inspector to the port of entry in be used to require a business to maintain registration to help reduce paperwork and re- order to conduct the needed inspection, exam- records regarding transactions or activities to porting burden, but registration would also be ination or investigation. The authority to tem- which it was not a party. The Secretary has in- permitted using a paper form. The Department porarily hold an article of food is not provided dicated that chain of distribution records that should work in a cooperative manner with fa- to facilitate mere administrative convenience. document the person from whom food was di- cilities in terms of their obligations to register, Instead, it is intended to reflect the physical rectly received, and to whom it was directly and should be reasonable in situations where absence of an inspector at the port of entry, delivered, would sufficiently enable adequate facilities are making good faith efforts to com- or other situations, that render inspection im- tracing of the source and distribution of food. ply. possible at the time of entry. The authority to This records access would not extend to the Registration should be made as simple as temporarily hold an article of food under this most commercially sensitive or confidential possible (such as permitting both electronic section should not delay or unnecessarily dis- records, including recipes, financial data, pric- and paper registration, as well as permitting a rupt the flow of commerce, and both the au- ing data, personnel data, research data, or headquarters to register on behalf of all estab- thority to detain foods and the authority to sales data (other than shipment data regard- lishments of a company) and the Secretary temporarily hold foods under this section are ing sales). This authority would not permit ac- shall promptly complete a rulemaking regard- intended to be used to deter bioterrorism and cess to any records regarding employees, re- ing exemption from registration requirements therefore apply to specific instances where search or customers (other than shipment for various types of retail establishments. As

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00050 Fmt 0666 Sfmt 9920 E:\CR\FM\A20DE8.069 pfrm07 PsN: E20PT1 December 20, 2001 CONGRESSIONAL RECORD — Extensions of Remarks E2389 part of this rulemaking the Secretary should UNITED STATES FOREST SERVICE nopoly—the ‘‘pediatric exclusivity’’—which the look broadly at the various types of the food AND FISH AND WILDLIFE SERV- drug companies then use as a marketing tool establishments in order to ascertain whether ICE REPORTS to promote and increase the drug’s sales. they should be exempted and shall exempt What I find horrifying is the grant of exclu- from registration those facilities that are not HON. GEORGE R. NETHERCUTT, JR. sivity takes place after the drug company does necessary to accomplish the purpose of this OF WASHINGTON its study but before anyone knows what is in- section. The Secretary should assure that im- IN THE HOUSE OF REPRESENTATIVES cluded in the results of the study. Nothing is plementation of this section does not unneces- Thursday, December 20, 2001 said to the general public—which includes par- sarily disrupt the flow of commerce. ents and pediatricians—or prescribing physi- Mr. NETHERCUTT. Mr. Speaker, the recent cians about the safety, effectiveness, or dos- Section 306 requires the Secretary to pro- published reports about the planting of false age requirements. Under S. 1789, there is no mulgate a rule to provide for prior notice to the evidence by biologists with the United States requirement to change the labeling on the Secretary of food being offered for import. The Forest Service and the United States Fish and drug to reflect the changes that may be need- prior notice is to occur between 24 and 72 Wildlife Service are alarming. ed when the drug is dispensed to young peo- hours before the article is offered for import. In An internal Forest Service investigation has ple. There is no label to tell doctors, patients, found that the science of the habitat study had circumstances where timely prior notice is not and their families the proper dosage, or how been skewed by seven government officials: given, the article is to be held at the port until to dispense or use the drug. three U.S. Forest Service employees, two U.S. such notice is given and the Secretary, in no Fish and Wildlife Service officials and two em- My argument has always been this: before more than 24 hours, examines the notice and ployees of the Washington Department of Fish you grant pediatric exclusivity to a pharma- determines whether it is in accordance with and Wildlife. ceutical company and before this exclusivity is the notice regulations. At that time, the Sec- These officials, according to published re- then marketed as being FDA approved for pe- retary must also determine whether there is in ports, planted three separate samples of Ca- diatric use, shouldn’t you at least know what his possession any credible evidence or infor- nadian lynx hair on rubbing posts used to is the effect of the drug on young people? mation indicating that such article presents a identify existence of the creatures in the two Under current law—and this bill would ex- threat of serious adverse health consequences national forests. Had the deception not been tend current law after the study is completed, or death to humans or animals. This deter- discovered, the government likely would have exclusivity is granted, but whether the drug mination by the Secretary should not delay or banned many forms of recreation and use of helps or hurts young people remains a secret unnecessarily disrupt the flow of commerce. natural resources in the Gifford Pinchot Na- and is not disclosed to the doctors, patients, tional Forest and Wenatchee National Forest and their families for an average of 9 months. Section 306 is not intended as a limitation in Washington State. The restrictions would Shouldn’t this information get out to these on the port of entry for an article of food. In have had a real-life devastating impact on the people before they ingest this medicine? some instances, such as inclement weather, economy of Washington State. I have a chart, which I have used on the routine shipping delays, or natural disasters, a Today I join with many of my colleagues in floor before. It highlights the problems with S. shipment of food may arrive at a port of entry demanding that these employees, upon evi- 1789, which does not require labeling changes other than the anticipated port of entry pro- dence of their guilt is established, be imme- until 11 months after the drug is being used in vided on the notice. When such situations diately terminated. It is unacceptable that the pediatric population. How many of you arise, arrival at a port other than the antici- these employees have simply been counseled would give your child a drug and not know pated port should not be the sole basis for in- for their planting of evidence. Federal employ- whether it helps or harms your child until 11 ees should be held accountable for their ac- validating a notice that is otherwise in accord- months later? tions—period. ance with the regulations. Also, the importer of Further, I support a complete review of the There have been 33 drugs granted pediatric an article of food is required to provide infor- lynx study as well as a review of any other exclusivity. Only 20 have been re-labeled to mation about the grower of the article of food, projects on which these employees may have reflect the results of the pediatric study, and if that information is known to the importer at worked. The integrity of these agencies and even those label changes have taken an aver- the time that prior notice is being provided in our future efforts to protect threatened and en- age of 9 months. accordance with the regulations. This provi- dangered species depends on these reviews. For 9 months, doctors, patients, and their sion only requires the importer to provide any As a member of the Interior Appropriations families have no idea if the child is receiving information he has in his possession at the Subcommittee, I intend to make sure that this the proper dosage or even if the drug is really time that prior notice is being provided. The kind of activity never happens again and that safe! Secretary shall closely coordinate this prior the agencies involved are not perpetrating a Now why can’t doctors, patients, and their notice regulation with similar notifications that fraud on the American people. That is my families know this information before the grant highest responsibility. are required by the U.S. Customs Service with of pediatric exclusivity is given? I was not al- the goal of minimizing or eliminating unneces- f lowed a chance to offer my amendment before sary, multiple or redundant notifications. BEST PHARMACEUTICALS FOR the full House. My amendment is very simple CHILDREN ACT and very commonsense: before pediatric ex- f clusivity is granted, all drugs must be labled SPEECH OF especially for pediatric use. PERSONAL EXPLANATION HON. BART STUPAK Under other prescription drug patent exten- sion programs, labeling is an absolute pre- OF MICHIGAN requisite to receiving patent extension. But not HON. HAROLD E. FORD, JR. IN THE HOUSE OF REPRESENTATIVES pediatric exclusivity. Why would we treat our Tuesday, December 18, 2001 children any differently? OF TENNESSEE Mr. STUPAK. Mr. Speaker, I rise tonight to For the love of me, I cannot understand why IN THE HOUSE OF REPRESENTATIVES urge Members to vote against the pediatric ex- the majority does not want doctors, patients, Thursday, December 20, 2001 clusivity bill, S. 1789. It is the product of a and their families to know the effect of drugs flawed negotiating process, a flawed legisla- may have on children! Mr. FORD. Mr. Speaker, regrettably, I was tive process, and a flawed regulatory process What is the proper dosage? What is the effi- not present for the vote on final passage of which was instituted back in 1997. cacy? What is the safety level for our chil- H.R. 3529, the Economic Security and Worker First approved in 1997, pediatric exclusivity dren? granted drug companies an extra six-month Assistance Act, or the preceding motion to re- Why do we wait an average of 9 months be- commit. extension on their patent if they would conduct a study to determine what the effects were on fore we see proper labeling? Why must we Had I been present, I would have voted young people. The FDA sends a written re- wait to find out if a child has received the ‘‘Yea’’ on rollcall vote number 508, the motion quest for a pediatric study to the drug com- proper dosage? to recommit, and ‘‘Nay’’ on rollcall vote 509 pany. Upon completion of the study, FDA Let us defeat this legislation. I urge a no final passage of H.R. 3529. grants a six month extension of the patent mo- vote.

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00051 Fmt 0666 Sfmt 0634 E:\CR\FM\A20DE8.072 pfrm07 PsN: E20PT1 E2390 CONGRESSIONAL RECORD — Extensions of Remarks December 20, 2001 UNITED STATES SECURITY ACT destruction. We have the best military in the was kind enough to provide me with a copy of world; however, the war on terrorism is unlike that issue of the magazine. HON. JERRY F. COSTELLO any we’ve ever fought, and enhancement of Mr. Speaker, the article states that in Au- OF ILLINOIS current training is important. gust 1952, ‘‘with the opening of the hadj only IN THE HOUSE OF REPRESENTATIVES Mr. Speaker, I believe that we have pro- a few days away, nearly 4,000 desperate duced a good bill. This legislation addresses Moslems found themselves in Lebanon . . . Thursday, December 20, 2001 many real needs in enhancing the security of with air tickets but no reservations. Commer- Mr. COSTELLO. Mr. Speaker, I rise today in the United States. I urge my colleagues to join cial lines, flooded with applications, could take support of the Democratic Caucus’ Homeland me in support of the legislation. only a few.’’ As you may know, Mr. Speaker, Security bill, the United States Security Act f the hadj is the annual pilgrimage to Mecca (USA Act). which each Muslim is expected to undertake This legislation is a collaborative effort craft- HONORING THE DEDICATED at least once in his or her life if possible. ed by my democratic colleagues on the Home- SERVICE OF DANIEL HARTER The article continues, ‘‘To help in the emer- land Security Task Force. I was honored to gency, American Ambassador Harold B. Minor have served as the vice chair of the Transpor- HON. BART GORDON asked the United States Air Force to fly 14 CÐ tation Security task force with my friend, BOB OF TENNESSEE 54s from Libya and Germany. Quickly a shut- BORSKI, who chaired the task force. IN THE HOUSE OF REPRESENTATIVES tle service was set up; in 75 flights 3,763 pil- The USA Act addresses funding needs to grims were transported 900 miles from Beirut Thursday, December 20, 2001 improve our homeland security in the following to Jidda in time to begin their hadj. In grati- areas: public health, transportation, physical Mr. GORDON. Mr. Speaker, I rise today to tude, the Mufti of Lebanon ordered prayers for and informational infrastructure, law enforce- bid farewell to Daniel Harter, an intern with my Americans in all mosques, and King Abdul ment and the military. As the attacks of the office. Daniel has provided a unique perspec- Aziz al Saud presented Arab robes to 86 air- 11th clearly and unfortunately demonstrated, tive along with legal expertise as a member of men.’’ our nation is vulnerable to attack. This bill my staff for the past three months, and be- The article also states, ‘‘The Air Force ac- goes a long way to minimize those came an invaluable resource. cepted no money for the pilgrim passages. vulnerabilities. Daniel started with me shortly after com- Fares collected by commercial airlines, for In the past five years—and prior to the pleting law school, wanting to learn as much flights they were unable to complete, went to 11th—there have been international events as possible about the workings and intricacies Moslem charity.’’ which highlighted potential weaknesses in our of Capitol Hill. Despite being confronted with Mr. Speaker, I would again like to thank transportation systems. In Tokyo, Japan, indi- challenges and pressures most would fold Leonard Mulcahy for making sure that Amer- viduals caused harm by releasing sarin gas in under, Daniel persevered and became a val- ica’s assistance to the Muslim pilgrims in 1952 the subway system. The USGS Cole was at- ued part of my Washington, DC, office. is not forgotten. Despite our imperfect history, tacked in a seaport that, although in Yemen, Like so many capable and hard working Americans can be proud that ours is a gen- was considered safe. While these attacks oc- young congressional staff members, Daniel is erous and tolerant nation, and I believe the curred overseas, they could have taken place moving on to work as an attorney. Although fact that we provided this type of assistance to here in the States. my staff and I are saddened to see him leave, thousands of Muslims nearly half a century With the passage of the Aviation Security Daniel’s commitment to the legal process, his ago helps to illustrate that fact. Act earlier this year, significant improvements passion for public service, and his vigorous f to aviation security were mandated. However, pursuit of perfection will serve his clients and other modes of transportation could still be his profession well. FEDERAL LEGISLATION TO PRO- susceptible to attack. This legislation author- Daniel tackled every task head on, from TECT THE VOTING RIGHTS OF izes funds to secure bridges, tunnels, dams, helping with day-to-day operations, to aiding ACTIVE DUTY MILITARY MEM- seaports, rail, and public transit. with the daunting legislation and constituent BERS WHOSE HOME OF RESI- Specifically, the bill provides $3.6 billion to demands of post-September 11 life on the Hill. DENCE IS AMERICAN SAMOA strengthen bridge and tunnel structures, im- His contribution to our office and his work for prove inspection facilities and the inspection of the people of Middle Tennessee will be HON. ENI F.H. FALEOMAVAEGA Hazmat materials on highways, supply the missed. OF AMERICAN SAMOA traveling public with real-time information f IN THE HOUSE OF REPRESENTATIVES about availability roads and bridges if terrorist attacks were to occur again, and improve se- U.S. HAS LONG TRADITION OF Thursday, December 20, 2001 curity for locks and dams. It also provides HELPING MUSLIMS, AS SHOWN Mr. FALEOMAVAEGA. Mr. Speaker, I rise $992 million to enhance security at our sea- BY 1952 EMERGENCY ASSISTANCE today to introduce federal legislation to protect ports by increasing coast guard personnel, es- TO NEARLY 4,000 MECCA PIL- the voting rights of active duty military mem- tablishing a sea marshal program, requiring GRIMS bers whose home of residence is American transponders for foreign vessels in U.S. wa- Samoa. ters, and screening ship cargo by x-ray. To HON. PAUL E. KANJORSKI Since 1977, active-duty service members improve security on transit systems, $3.2 bil- OF PENNSYLVANIA serving overseas or on the United States lion is authorized. Funds would be used to IN THE HOUSE OF REPRESENTATIVES mainland have been excluded from fully par- hire additional security personnel, improve ticipating and voting in both general and runoff Thursday, December 20, 2001 communications and refine mass transit evac- Federal elections in American Samoa due to uation plans. With the appropriation of funds, Mr. KANJORSKI. Mr. Speaker, I rise today several factors, including local law that re- the security of these transportation systems to call the attention of the House of Rep- quires active duty military members to register will markedly improve. resentatives to the fact that our nation has a in person, limited air and mail service between The USA Act also authorizes funds to long history of helping Muslims. While we are the U.S. mainland and American Samoa, and strengthen communities responses to emer- familiar with the actions America has taken in delays in the preparation of new ballots in the gency incidents. This is done by increasing recent years to intervene for the benefit of case of runoff elections. the number of firefighters, providing grants to Muslims in Somalia, Bosnia and Kosovo, However, under the provisions of 42 U.S.C, communities and first responders and improv- among numerous other locations around the 1973ffÐ1, Federal law states that: ing technology so that important information world, America is hardly new to coming to the Each State shall— can be more readily shared between local, aid of people of the Islamic faith. (1) permit absent uniformed services voters state and federal governments. Our nation’s In particular, I would like to call the attention and overseas voters to use absentee registra- first responders are an integral component in of the House to an instance brought to my at- tion procedures and to vote by absentee ballot response to a terrorist attack, and we must tention by an alert constituent, Mr. Leonard in general, special primary, or runoff elections ensure that they are well prepared. Mulcahy of Wyoming, Pennsylvania. In light of for Federal office; In addition, the bill also takes major steps recent events, Mr. Mulcahy recalled seeing an (2) . . . towards improving the preparedness of the article in the July 1953 issue of National Geo- (3) permit overseas voters to use Federal military to effectively fight terrorism and pre- graphic magazine about the U.S. Air Force as- write-in absentee ballots . . . in general elec- venting the proliferation of weapons of mass sisting nearly 4,000 Muslims in 1952, and he tions for Federal office.’’

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00052 Fmt 0666 Sfmt 9920 E:\CR\FM\A20DE8.075 pfrm07 PsN: E20PT1 December 20, 2001 CONGRESSIONAL RECORD — Extensions of Remarks E2391

American Samoa law requiring uniformed INTRODUCTION OF THE SPECIES has great concern with. Mr. UNDERWOOD has service voters to register to vote in person is PROTECTION AND CONSERVA- chosen to be an original cosponsor because contrary to the Uniformed and Overseas Citi- TION OF THE ENVIRONMENT of the enormous impacts the brown tree snake zens Absentee Voting Act. The Uniformed and (SPACE) ACT has on Guam, its power lines and native bird Overseas Citizens Absentee Voting Act recog- species. nizes that there is a considerable cost in- HON. NICK J. RAHALL II The Species Protection and Conservation of volved for a service member, and often a OF WEST VIRGINIA the Environment Act, or SPACE Act, would provide the missing link in existing efforts to spouse, to travel to his/her home of residence IN THE HOUSE OF REPRESENTATIVES to register to vote. Federal law also recog- combat the pernicious and destructive space Thursday, December 20, 2001 nizes that active duty service members have invasion of some of our most valuable natural little to say about where they are stationed. Mr. RAHALL. Mr. Speaker, the United areas by: Yet, wherever they are sent, and whatever States is an economic powerhouse. We work 1. Providing incentive money to States to dangers they may encounter, Federal law rec- to keep the economy strong and to maintain a write State-wide assessments to study exactly ognizes that our service members are fun- high standard of living for the people who re- where their native species are being threat- damentally entitled to the right to vote. side here. Yet we have a drain on the econ- ened by harmful nonnative species; omy estimated to be $137 billion annually, a 2. Providing incentives for projects to imple- Mr. Speaker, the discrepancy that exists be- ment the State assessments; tween Federal and territorial law must be ad- drain that goes unchecked and relatively unpublicized because it is not a ‘‘glamorous 3. Encouraging the formation of partnerships dressed. Soldiers from American Samoa serv- among the Federal government and non-Fed- ing in the active-duty military should be af- topic.’’ This drain is spreading, continually in- vading our natural spaces and crowding out eral land and water owners and managers; forded a fair opportunity to vote in American 4. Addressing harmful nonnative species’ our native flora and fauna. Samoa as required by federal law. migratory pathways; In this regard, I am referring to harmful non- 5. Implementing specific recommendations The fact of the matter is our military men native species, invasive species; an issue of the National Strategy written by the National and women place their lives on the line to pro- which is not yet fully in the public’s eye. Even tect our freedoms. The least we can do is en- Invasive Species Council; if a person has little concern with native fish 6. Creating a Federal-level rapid response sure that their fundamental right to vote is also and wildlife and the habitats they live in, even protected. Now more than ever, when our capability; and if that person resides in a city where the major 7. Tasking the National Invasive Species country is at war, and our nation is in crisis, wildlife is found only in alleys, the fact remains we should make every effort to afford our Council to develop standard monitoring re- that invasive species are a drain on our econ- quirements for projects combating harmful service members and their dependents the omy. Included in the $137 billion figure I re- right to vote. nonnative species. ferred to earlier are the negative impacts on Using a two-pronged approach, the SPACE To ensure that American Samoa’s election agricultural production, control costs, and Act would provide resources to States and laws comply with Federal law, I have sug- costs in lost land and water resources and U.S. territories, including Indian Tribes, to ad- gested that a division should be created within uses. This number is too large to ignore, par- dress real problems and real solutions. The our local election office to deal specifically with ticularly when trends suggest that the number first prong is a grant program to provide re- absentee ballot and registration procedures. I will only go up over time. sources to States, territories and tribes to de- also believe that the territory needs to recon- For example, my home State of West Vir- velop assessments to control their harmful sider matters pertaining to run-off elections. ginia is a relatively small in terms of land nonnative species. Participation in the pro- Under territorial law, it is nearly impossible mass, but here are only a few of the impacts gram would be voluntary, but once this bill be- for absentee voters to cast votes in a run-off felt from harmful nonnative species: comes law we believe that all States, terri- election because local law mandates the run- The balsam fir tree, on the state list of rare tories and tribes will want to take advantage of off election to be held two weeks after the plants, is being infected by a small insect, the this opportunity and the benefits it can bring to general election. This local mandate discrimi- balsam wooly adelgid, which sucks the sap, them, aiding them in the organization, nates against active service members and killing the tree. This tree is a unique species prioritizing and specific actions with regards to other absentee voters. To address this prob- for the State, and unless drastic measures are their harmful non-native species problems and lem in terms of Federal elections, I believe the taken, it will be completely wiped out by this allowing them to apply for what the bill refers best solution is to establish non-partisan pri- insect. to as Aldo Leopold Grants. Technical assist- mary elections during an election year in the Shale barrens, one of the most unique nat- ance would also be available to the States, event that there are three or more candidates ural plant habitats in West Virginia, have been territories and tribes through the National running for Congress. invaded by many non-native species over the Invasive Species Council to ensure that all as- Primary elections in the summer followed by years, but two of the most problematic are sessments would be effective and include the general elections in the fall will afford all of our spotted knapweed and barren bromegrass. recommendations of the Council’s overarching qualified voters an equal opportunity to cast These plants out-compete native species and Management Plan. The second prong is implementing the as- their ballots. This will also ensure that our ac- slowly eradicate them from these unique eco- sessments through what would be known as tive duty service members are afforded the systems. In a continuation of the plight of the Great Aldo Leopold Native Heritage Grant Program, same rights and privileges as every other Lakes, the zebra mussel has found its way to which would be available on a 75% federal, American serving in the U.S. Armed Services. West Virginia. So far, the zebra mussel is re- 25% non-federal cost sharing basis. Through Mr. Speaker, I urge my colleagues to sup- sponsible for the federal listing of five species a variety of partnerships land and water own- port this legislation and I look forward to its of mussel in the Ohio River, not to mention ers and managers would be eligible to receive timely passage. economic damage from its clogging of water grants administered by the Secretary of the In- pipes. terior. The approved assessment would serve f These are only three of the over 150 harm- as a guide for developing projects with part- ful non-natives that currently affect West Vir- ners, including Department of Interior and For- PERSONAL EXPLANATION ginia. In my view, we have an obligation to our est Service lands, working together to control native species to protect, conserve and re- or eradicate harmful nonnative species on the HON. MAJOR R. OWENS store them from the introduction of harmful lands and waters under their governance. With invasive species. the assessment as the foundation for all OF NEW YORK For these reasons, today I along with the projects, this legislation would encourage ad- IN THE HOUSE OF REPRESENTATIVES gentleman from Maryland, WAYNE GILCHREST, dressing all problems at the ecosystem level Thursday, December 20, 2001 and the gentleman from Guam, ROBERT and including all land and water owners. To UNDERWOOD, are introducing a bill to protect, support the use of innovative methods and Mr. OWENS. Mr. Speaker, because I had to conserve and restore our native fish, wildlife technologies, grants would be available on an return to my district to handle very urgent and their habitats by addressing the threat of 85% federal, 15% non-federal basis if new business, I missed a number of rollcall votes. these space invaders, harmful invasive spe- techniques are used. Reporting and moni- Had I been present, I would have voted ‘yea’ cies. Maryland, for example, has a nutria prob- toring requirements are mandated by the on rollcall votes 505 and 508. On rollcall votes lem, too many nutria, and the veined rapa grant, allowing for the creation of a database 506, 507 and 509, I would have voted ‘‘nay’’. whelk, both of which I know Mr. GILCHREST which would track the methods and results of

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00053 Fmt 0666 Sfmt 9920 E:\CR\FM\A20DE8.079 pfrm07 PsN: E20PT1 E2392 CONGRESSIONAL RECORD — Extensions of Remarks December 20, 2001 each project, both over the short and long leader—Reverend William Holt Hargrave. For to help a young man, dying of leukemia, get term. more than 25 years, Reverend Hargrave home to his family. Greyban Saenz, a 24 year To facilitate and demonstrate how these re- served with distinction as the Pastor of the old native of Honduras, wanted to be with his lationships between federal and other public Ebenezer Baptist Church in Englewood, New family. The Buddy Kemp Cancer Caring and private lands and waters should work, the Jersey. As a former Mayor of Englewood, I House in Charlotte contacted Dan the Monday SPACE Act would also create a demonstration have had a wonderful opportunity to see him before Thanksgiving to see if there was any- program with the National Wildlife Refuge Sys- lead his congregation, and to experience his thing that he could do to help. Dan didn’t think tem. This program would implement coopera- warmth and kindness firsthand. twice. He jumped right in to help find an af- tive projects to be carried out on lands and The members of the Ebenezer Baptist fordable flight and someone to accompany waters of the National Wildlife Refuge System Church are some of the most patriotic and Greyban on that flight. He worked through and their adjacent neighbors, demonstrating spiritually uplifting people that I have ever had Thanksgiving, and got Greyban a flight, met cooperation and helping to address the oper- the pleasure of knowing. The congregation is him at the airport, made sure he was safely on ations and maintenance backlog of the Refuge filled with decent, honest, God-loving people the plane, and he even translated the doctor’s System. Because this is a demonstration who have a tremendous sense of community. discharge papers’ into Spanish. Dan did all project, the non-Federal lands involved would Certainly, Reverend Hargrave’s leadership has this for a man he had only known for 5 days. not have to have a State assessment yet in had a tremendous impact on all of their lives. Greyban flew home to his family the Saturday place. These projects would be the first to op- As a voice of comfort and reason, Reverend morning after Thanksgiving. Dan later said erate under this Act, and the results would be Hargrave committed himself to the church and that as sick as Greyban was, he was ani- reported to the Council for inclusion in a data- provided guidance and wisdom to those in his mated and excited that morning. Glad to going base. congregation and community. Anyone who home. I’m thankful for people like Dan Rami- Finally, this legislation would create a rapid has ever known Reverend Hargrave knows full rez who go the extra mile to help someone in response capability under the National well that his heart is filled with love, compas- need. It’s people like that make America Invasive Species Council. The Governor of a sion, and faith. His presence always put ev- strong. State experiencing a sudden invasion of a eryone at ease. f harmful nonnative species may apply to the I wish Reverend Hargrave and his family all Secretary for monetary assistance to eradicate the best. We all thank him for his service and TRIBUTE TO CREDIT UNIONS’ AS- the species or immediately control it. All as- commitment to the Ebenezer Baptist Church SISTANCE TO AFFECTED BY sistance would be given by the Secretary in and all the people of the great and good city FIGHT AGAINST TERRORISM consultation with the Council, and each rapid of Englewood. response project would have the same moni- f HON. WALTER B. JONES toring and reporting requirements as an Aldo OF NORTH CAROLINA Leopold Grant project. COMMEMORATING THE CENTEN- IN THE HOUSE OF REPRESENTATIVES Mr. Speaker, while there are a number of NIAL ANNIVERSARY OF THE 4-H initiatives already in place aimed at combating CLUB Thursday, December 20, 2001 invasive species, there is a void in existing Mr. JONES of North Carolina. Mr. Speaker, statute as no current law is designed to di- HON. BILL SHUSTER in the aftermath of the September 11 terrorist rectly protect and conserve our native species attacks, many of our financial institutions have from harmful non-native species at the federal OF PENNSYLVANIA IN THE HOUSE OF REPRESENTATIVES gone the extra mile to be of assistance to or any other level. There are laws directly ad- those affected by the incidents and their after- dressing harmful nonnative species, but main- Thursday, December 20, 2001 math. ly through prevention. These include the Non- Mr. SHUSTER. Mr. Speaker, I rise today to I rise today to pay particular tribute to the indigenous Aquatic Nuisance Prevention and honor the centennial anniversary of one of CEOs and volunteer board members of North Control Act, the Alien Species Prevention and America’s foremost youth organizations, the Carolina credit unions. Enforcement Act, the Federal Plant Pest Act, 4ÐH Club. In February, the 4ÐH Club will cele- Representatives of those credit unions, and the Plant Protection Act, and the Federal Nox- brate their centennial by holding a ‘‘National of the North Carolina Credit Union League and ious Weed Act. Conversation on Youth Development in the CUNA, recently made the trip to Washington In the development of this legislation, we 21st Century,’’ the results of which will be re- to visit my office not long after September 11. have worked with a number of organizations ported to the President and Congress. While they had thought of canceling the trip including the Wildlife Management Institute, Since its founding in 1902, the National 4Ð out of respect for the larger issues stemming the National Wildlife Federation, Defenders of H Club has helped in the education and devel- from the tragedy, they instead came to offer Wildlife, the National Audubon Society, the opment of our nation’s youth. While 4ÐH start- their support to this Congress. They also Aldo Leopold Foundation, the National Wildlife ed agricultural in nature, it has since evolved pledged that their credit unions will remain Refuge Association, the Izaak Walton League, to include a variety of different educational committed to serving the changing financial the Wildlife Society, the American Fisheries programs for children in rural as well as urban needs of their members and the citizens of Society and Trout Unlimited. Also consulted areas, ranging from environmental preserva- North Carolina during this period of economic were the National Fish and Wildlife Founda- tion to career exploration and workforce prep- uncertainty. tion, the National Invasive Species Council, aration. For example, Mr. Speaker, the 3rd District the Northeast Midwest Institute, the Inter- I congratulate the 4ÐH Clubs of Pennsyl- of North Carolina is home to three major mili- national Association of Fish and Wildlife Agen- vania on their commitment to our nation’s tary bases—Camp Lejuene, Cherry Point Ma- cies, The Nature Conservancy, the Natural leaders of tomorrow. The past 100 years have rine Corps Air Station, and Seymour Johnson Resources Defense Council, the American proven the necessity for the 4ÐH Club and Air Force Base—all of which are served by a Birding Association and the Wildlife Conserva- other similar educational organizations, and I credit union. These credit union employees tion Society. wish for their continued success for many help military personnel and their families with I look forward to working with all interested years to come. the money challenges that they face during parties as well as the members of the Re- f these difficult times, and have committed to sources Committee to facilitate the enactment safeguarding the financial well being of our of this bill. TRIBUTE TO DAN RAMIREZ service men and women deployed overseas. f For instance, the staff of First Flight Federal HONORING REVEREND WILLIAM H. HON. SUE WILKINS MYRICK Credit Union in Havelock, NC, has been work- HARGRAVE OF NORTH CAROLINA ing with the base legal department at the Ma- IN THE HOUSE OF REPRESENTATIVES rine Corps Air Station at Cherry Point to en- HON. STEVEN R. ROTHMAN sure that family members have the appropriate Thursday, December 20, 2001 authority to conduct financial transactions on OF NEW JERSEY Mrs. MYRICK. Mr. Speaker, there are a lot behalf of the service member while they are IN THE HOUSE OF REPRESENTATIVES of good things going On in our communities deployed. Thursday, December 20, 2001 that you don’t necessarily hear about in the Another example is the Seymour Johnson Mr. ROTHMAN. Mr. Speaker, I rise today to news. Recently, a friend in Charlotte, Dan Ra- Federal Credit Union in Goldsboro, NC, which pay tribute to a remarkable friend and spiritual mirez, went above and beyond the call of duty has established a call center hotline to provide

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00054 Fmt 0666 Sfmt 9920 E:\CR\FM\A20DE8.084 pfrm07 PsN: E20PT1 December 20, 2001 CONGRESSIONAL RECORD — Extensions of Remarks E2393 support and answer questions from family A farewell. But not a goodbye. been delivered in the patient’s home. In addi- members whose spouses have been de- And for those in Belle Harbor, not even tion, the ADC would be required, with that one ployed. that. payment, to provide a full day of care to the And then . . . And then tragedy. Mr. Speaker, time does not permit me to list patient at no additional cost to the Medicare all the great things that these credit unions are Close to 300 individuals, some as families, some as couples, some as friends, some alone. program. That care would include the home doing to assist their members—both military Gone. health benefit as well as transportation, meals, and civilian during these difficult economic Tragedy, finality, shock and tears. medication management, and a program of times. But their efforts deserve our praise and How do we cope? How can we cope? So supervised activities. our thanks. much sadness. So much grief. So many ques- The ADC is capable of providing these addi- I urge my colleagues to speak with the cred- tions. So few answers. So much emptiness. tional services at the same payment rate as it unions and other financial institutions in their In the second chapter of the Book of Lam- home health care because there are additional own districts to learn about all the ways they entations, Eicha, we read: ‘‘Horidi chanachal dim’a yomam valayla.’’ Shed tears like a inherent cost savings in the ADC setting. In are helping their customers during this time of the home care arena, a skilled nurse, a phys- need. Through the efforts these financial insti- river, day and night. What binds us together today, as what has ical therapist, or any home health provider tutions, and others, we will not only weather bound us together at the Ramada, at the must travel from home to home providing this storm but we will be economically stronger Javits Center, and while even at home, are services to one patient per site. There are sig- for it. the tears. A river of tears, day and night. nificant transportation costs and time costs as- f Tears are not shed in English. Tears are sociated with that method of care. In an ADC, not shed in Spanish. Tears are not shed in the patients are brought to the providers so REMARKS BY RABBI MICHAEL Hebrew. The tears themselves are a common MILLER language. Crying itself is a language of grief. that a provider can see a larger number of pa- We shed rivers of tears for the children tients in a shorter period of time. HON. ANTHONY D. WEINER whose lives had been so fresh, whose promise It is important to note that this bill is not an OF NEW YORK had been so abounding, whose future had expansion of the home health benefit. It would been so bright. IN THE HOUSE OF REPRESENTATIVES not make any new people eligible for the We shed rivers of tears for the mothers and Medicare home health benefit. Nor would it Thursday, December 20, 2001 fathers, wives and husbands, who had longed expand the definition of what qualifies for re- Mr. WEINER. Mr. Speaker, this past month, to watch their children grow, who had imbursement by Medicare for home health the Queens community of Belle Harbor was worked so hard to make a better life, who had given so much love to each other and to services. shaken by the crash of American Airlines flight so many. To be eligible for this new ADC option, a 587. As many of you know, this neighborhood We shed rivers of tears for brothers and sis- patient would still need to qualify for Medicare had already been hit particularly hard by the ters, friends and lovers whose companionship home health benefits just like they do today. attacks of September 11, as dozens of Belle had been torn away so suddenly. They would need to be homebound and they Harbor residents lost their lives to the attacks, We shed rivers of tears, day and night, for would need to have a certification from a doc- many of them firefighters. A number of us never having the opportunity to share a last tor for skilled therapy in the home. have struggled to find the appropriate words to hug, a kiss, a smile; to say goodbye; I’m This legislation simply recognizes that adult sorry; I love you. articulate our emotions during these times of day care facilities can provide the same health unfathomable loss. At the memorial service for We shed rivers of tears, day and night, and we pray. services with the added benefits of social flight 587 the Sunday after the crash, Rabbi As the liturgy for the closing Ne’ilah pray- interaction, activities, meals, and a therapeutic Michael Miller managed to find those words. I ers of the Jewish Day of Atonement, Yom environment, in which a group of trained pro- wanted to share his eloquence with my col- Kippur, reads: ‘‘Yehi ratzon milfanecha fessionals can treat, monitor and support leagues, and that is why I ask unanimous con- shomaiya kol bechiyot shetasim dimoteinu Medicare beneficiaries who would otherwise sent that these remarks be inserted into the benodcha l’hiyot.’’ May it be Your will, You be monitored at home by a single caregiver. RECORD. I hope that my colleagues will find who hears the sound of weeping, That You Rehabilitation is enhanced by such com- them as comforting as inspiring as I have. place our tears in Your flask for safe keep- ing. prehensive care. REMARKS AT A PRAYER SERVICE FOR THE VIC- And we pray, O Lord, that the waters of Not only does ADC aid in the rehabilitation TIMS OF THE CRASH OF AMERICAN AIRLINES our tears, like the incoming tide, draw the of the patient, it provides an added benefit to #587, SUNDAY, NOVEMBER 18, 2001, 2:00 PM, souls of these innocents close to You. the family caregiver. When a beneficiary re- RIIS PARK, QUEENS, NY Lord, protect them, guard them, watch ceives the Medicare home health benefit in In our Jewish tradition it is proper to ex- over them, and bless them—now and for eter- the home, the provider does not remain there press appreciation to one’s hosts. And it is nity. ‘‘V’yanuchu b’shalom al mishkavam.’’ all day. They provide the service they are paid within that spirit that I thank Mayor May their repose be peace. for and leave to treat their next patient. Giuliani for convening this service, and for And let us say—-Amen. his determined and compassionate leader- Because many frail seniors cannot be left ship, along with Governor Pataki, Senators f alone for long periods of time, this prevents Schumer and Clinton, and Congressman An- the caregiver from having a respite or being INTRODUCTION OF THE MEDICARE thony Weiner during these difficult times. able to maintain employment outside of the SUBSTITUTE ADULT DAY CARE [PSALM 121] home. If the senior could utilize ADC services, SERVICES ACT Last Monday morning, hundreds of people, they would receive supervised care for the men, women and children, the young and the whole day and the caregiver would have the old, woke up before dawn and rose from their HON. GERALD D. KLECZKA flexibility to maintain a job and/or be able to beds. A trip was to be taken to the Domini- OF WISCONSIN can Republic. leave the home for longer periods of time. In apartments, houses and hotel rooms last IN THE HOUSE OF REPRESENTATIVES Adult day care centers are proving to be ef- Monday morning, there was the predictable Thursday, December 20, 2001 fective, and often preferable, altematives to last minute rush. The checklist of things to complete confinement in the home. I urge my take. Packing that extra shirt, a pair of Mr. KLECZKA. Mr. Speaker, today Mr. colleagues to cosponsor and support this im- stockings, a gift for family in Santo Do- STARK from California and I are introducing portant legislation. mingo . . . the Medicare Substitute Adult Day Care Serv- f And, no doubt, last Monday morning, there ices Act. This critical legislation would expand was the presence of that anxiety which ac- home health rehabilitation options for Medi- PROTECTING OUR COMMUNITIES companies travel. Tickets. Passports. Would the car service come on time? Will we get to care beneficiaries while simultaneously assist- FROM PREDATORY LENDING the airport with minutes to spare? Do we ing family caregivers with the very real difficul- PRACTICES ACT have too much baggage? Too little? ties in caring for a homebound family member. Inevitably, last Monday morning, or Specifically, this bill would update the Medi- HON. MAXINE WATERS maybe it was last Sunday night, there was care home health benefit by allowing bene- the farewell. Fathers, mothers; wives, hus- OF CALIFORNIA ficiaries the option of substituting some, or all, IN THE HOUSE OF REPRESENTATIVES bands; sons, daughters; sisters, brothers; of their Medicare home health services for grandmothers, grandfathers; friends, lovers. Thursday, December 20, 2001 The farewell: a kiss; an embrace, A shake care in an adult day care center (ADC). of the hand, or a wave. A ‘‘so long’’ over the The ADC would be paid the same rate that Ms. WATERS. Mr. Speaker, today I rise to phone, ‘‘have a good trip.’’ would have been paid for the service had it introduce the ‘‘Protecting Our Communities

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00055 Fmt 0666 Sfmt 9920 E:\CR\FM\A20DE8.088 pfrm07 PsN: E20PT1 E2394 CONGRESSIONAL RECORD — Extensions of Remarks December 20, 2001 From Predatory Lending Act,’’ much needed This problem is getting worse, not better. also been extremely active in Rotary Inter- legislation to prevent predatory lending. This According to an ACORN study, Separate and national and will serve as district governor for year, my home state of California became the Unequal 2001: Predatory Lending in America, 2002Ð2003. third state in the nation to pass a law regu- which was released last month, African-Amer- But, Mr. Speaker, when I worked with Ross lating predatory lending practices. Reverse ican homeowners who refinanced in the Los Childs, I wasn’t working with a resume or a list redlining or predatory lending encompasses a Angeles area were 2.5 times more likely to re- of titles. I worked with a dedicated public serv- number of lending practices that target minor- ceive a subprime loan than white homeowners ant, a man who was a consumate advocate ity communities, employing interest rates and were and Latinos were 1.5 times more likely to for his Grand Traverse County, whether he service fee charges that are significantly high- receive a subprime refinance loan. And this is was laboring on behalf of an individual or for er than those prevailing in white communities. not merely a function of income: Upper-in- the county’s largest employer, Munson Such predatory lending practices are prevalent come African-Americans and middle-income Healthcare. in many areas across the country and federal African-Americans were more likely to receive I have worked with Ross on numerous action in this area is long overdue. a subprime loan than low-income white home- issues, including funding for a new airport ter- Home equity loans have historically been owners when refinancing. Middle-income minal at Cherry Capital Airport, funding for the privilege of the middle class and wealthy, Latinos were also more likely to receive a roads in the county, and projects at the Coast who generally have high credit ratings, in- subprime refinance loan than low-income Guard air station in Traverse City. In between come, and home equity. However, beginning whites. dealing with major projects or problems, I al- in the 1980s, non-depository finance compa- We must continue to scrutinize predatory ways knew that when the National Association nies—lending institutions other than commer- lending practices and protect American con- of Counties met in Washington, D.C., Ross cial banks, thrifts, and credit unions—began to sumers who are easy targets for the predatory would arrive with a list of county issues for me provide home-equity loans to lower-income lending industry. Congress and federal agen- to work on. communities, which were not served by main- cies must recommit our efforts to ensure that Ross and his wife Helen have two daugh- stream lenders. greater opportunity to credit access means an ters, Mary and Susan. As a change from our Persons in low-income communities typically increase in quality of life, not an increase in usual meetings in Washington, it was a pleas- have little disposable income, but may have predatory lending and foreclosure. I will con- ure for my staff and me to be able to show substantial home equity as a result of paying tinue fighting on the federal level until preda- Ross, Helen and Susan some of the sights of down their mortgages or through the apprecia- tory lending is eliminated and the term will this great city when they came here on a fam- tion of their property values. This equity can only have relevance in history books. I encour- ily visit. secure sizable loans. While offering loans to age my colleagues to support my legislation That doesn’t mean we haven’t had our dif- low-income and minority communities can and look forward to working with you to elimi- ferences, Mr. Speaker. I ask you to recall that benefit these communities, predatory lending nating this blight from our communities. Ross in an alumni of the University of Michi- practices, which oftentimes use the borrowers’ gan, a school he not only attended but rep- home as collateral, have milked the last drops f resented on the hockey rink. Waving those of wealth from many of these neighborhoods, TRIBUTE TO K. ROSS CHILDS ON Michigan school colors of maize and blue in leading to increased poverty and public de- THE OCCASION OF HIS RETIRE- front of a Michigan State supporter like me is pendence. MENT AS COUNTY ADMINIS- My bill adds important protections to the law like waving the proverbial red flag in front of TRATOR FOR GRAND TRAVERSE a bull. that will save many people from losing their COUNTY, MICHIGAN homes. My legislation would prohibit the in- Mr. Speaker, let me add a personal note of dustry from making false, deceptive or mis- appreciation. Ross and Helen lost their son leading statements or engaging in unfair or HON. BART STUPAK Scott, a hockey player like his father, in an deceptive acts or practices, and prohibit blank OF MICHIGAN auto accident some years ago. When my own terms in credit agreements that are filled in IN THE HOUSE OF REPRESENTATIVES son BJ died last year, Ross was there at the after the consumer has signed. In addition, it Thursday, December 20, 2001 funeral to lend his support. We share a pro- would prohibit prepayment penalties and the found loss that never quite heals, and I will al- Mr. STUPAK. Mr. Speaker, I rise tonight to ways remember and appreciate his true ex- financing of credit insurance. pay tribute to a dedicated public servant, K. My bill will prohibit the ‘‘flipping’’ of con- pression of sympathy and genuine concern. Ross Childs, who is retiring after serving as sumer loans, in which the borrower refinances So, Mr. Speaker, K. Ross Childs is giving County Administrator for Grand Traverse an existing loan when the new loan does not up the reins of power in Grand Traverse County, Michigan, since 1976. Ross will be have a reasonable, tangible benefit to the con- County, and in one of his final acts as admin- honored on January 5 at a special celebration sumer. This practice of flipping often costs the istrator he has helped hire and mentor Dennis in Traverse City by the many friends and col- consumer thousands of dollars in fees and fre- Aloia, who comes from Marquette in the Upper leagues he has touched in his long career. quently leads to foreclosure. My bill will elimi- Peninsula of Michigan. As a U.P. resident my- A review of Ross’ professional resume re- nate the practice of charging fees for services self, I am pleased to see that Ross has veals an individual who acquired a broad base or products not actually provided. It will also learned what a great value and resource the of skills that ably suited him for the job of prevent collusion between lenders and ap- U.P. can be for Grand Traverse County. county administrator. A Canadian citizen by praisers or home improvement contractors by While Ross may be leaving his post as prohibiting direct payments to home improve- birth, he did his undergraduate studies in the county administrator, he will remain active in ment contractors without a consumer cosigna- community of Owen Sound, Ontario. He came northern Michigan as regional governor of Ro- ture and prohibits creditors from influencing to the U.S. in 1955 to earn an engineering de- tary, a organization to which he has been ex- the judgement of an appraiser. gree at the University of Michigan, and his tremely dedicated for many years. My legislation will remove the shroud of se- postgraduate studies included courses in engi- I ask you, Mr. Speaker, and our House col- crecy that currently surrounds the application neering, business administration and public leagues to join me in congratulating this public process by requiring that a consumer receive administration at U. of M. and Detroit’s Wayne servant on a job well done and in wishing disclosure of his or her credit score and an ex- State University. Ross and Helen Childs the best in their retire- planation of the methodology used to calculate This resume also reveals an administrator ment years. the credit score, if one is used by the lender. who recognized that being in charge of a di- f My legislation will impose restrictions on late verse and growing county required close co- payments and apply additional safeguards by ordination with local public and private organi- CONGRATULATIONS TO MR. AND lowering the threshold for high cost mort- zations. At various times Ross has served as MRS. FLORENIO BACA gages. a member or officer of, among others, the Finally, my legislation will prohibit steering Michigan Leadership Institute, the Grand Tra- HON. JOE BACA consumers into loans with higher risk grades verse Commons Redevelopment Corporation, OF CALIFORNIA than the consumer would qualify for under Leadership Grand Traverse, the Traverse Bay IN THE HOUSE OF REPRESENTATIVES prudent underwriting standards. This is merely Economic Development Authority, the Tra- the latest in a long line of practices that have verse City Convention and Visitors Bureau, Thursday, December 20, 2001 targeted minorities and low and moderate in- the Traverse City Area Chamber of Com- Mr. BACA. Mr. Speaker, it is my privilege to come families, shutting them out of the Amer- merce, National City Bank, Blue Cross Blue announce to you and to the rest of my es- ican Dream of homeownership. Shield, and Munson Medical Center. Ross has teemed colleagues, that on January 5, 2002,

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00056 Fmt 0666 Sfmt 9920 E:\CR\FM\A20DE8.092 pfrm07 PsN: E20PT1 December 20, 2001 CONGRESSIONAL RECORD — Extensions of Remarks E2395 Flornio and Escolastica Baca will celebrate tive effect upon her local community, Dr. they were helping someone in need deserve their 50th wedding anniversary. The couple Davis’ leadership has been instrumental in protection from these scam artists,’’ Mr. will renew their wedding vows in a ceremony strengthening the bonds between the cities of O’Neill said at the White House. The Treas- ury also announced action against the Al at Mt. Saint Joseph’s Catholic Church in Bar- Corona and Norco, along with their business Aqsa Bank and the Belt al Mal Holdings stow, California. and educational communities. Company, a bank that it described as ‘‘direct Florenio and Escolastica were both born in Dr. Brenda Davis holds a Doctor of Edu- arms of Hamas.’’ New Mexico. Florenio was one of thirteen chil- cation degree in Curriculum and Teaching, a I ask that the full text of the article follow my dren born to Seledon and Isabeleta Baca, Master of Education Degree in Psychiatric— remarks. while Escolastica was only one of two children Mental Health Nursing and Bachelor of It seems clear that the Holy Land Founda- born to her parents, Rafael and Eufelia Gar- Science in Nursing all from Teachers College, tion for Relief and Development is an organi- cia. Eufelia, now 89 years old, is the couple’s Columbia University in New York. Dr. Davis is zation that serves as the fundraising arm of only surviving parent. recognized as a very effective administrator Hamas, which is responsible for hundreds, if Florenio and Escolastica married on Janu- and has held several administrative positions not thousands, of terrorist deaths in Israel over ary 28, 1951 in La Joya, New Mexico, and at Riverside Community College, including Di- the years, with a recent surge of murder of in- shortly afterwards the pair moved to Barstow, rector, Department Chairperson of Nursing; nocent young people in Jerusalem, Tel Aviv California. Florenio worked for the Santa Fe Dean, Nursing Education; Dean, Grant and and Haifa. Railway and later went to work for a civil serv- Contract Services. I do not believe that the American people, ice position only to return to the Santa Fe Brenda’s tireless, engaged action have pro- especially American Muslims, are intentionally Railway until his retirement. A hardworking pelled the City of Corona forward in a positive giving money to support terror. In fact, I am couple, Florenio and Escolastica were pio- and progressive manner. Her work to promote sure that the vast majority of contributors to neers of the dual income family as Escolastica the businesses, schools and community orga- this organization believed that their money worked a variety of jobs until her retirement nizations of the City of Corona make me was going to support the legitimate humani- from a civil service position in Nebo, Cali- proud to call her a fellow community member, tarian concerns that Americans have about the fornia. All the while, Florenio and Escolastica American and friend. I know that all of Corona situation in the Middle East. raised a loving family. is grateful for her contribution to the better- The facts, however, indicate that these con- The couple was blessed with three children, ment of the community and salute her as she tributions were being used to finance bombs Gilbert, Sally and Evelyn. Today their children departs. I look forward to continuing to work targeted at innocent civilians. Mr. Speaker, Americans trust the IRS to de- are grown and married. Florenio and with her for the good of our community in the termine what is and what is not a charity. If Escolastica’s family now includes Gilbert’s future. there is an organization that is designated by wife, Tracy Marcum, Sally’s husband, Scott f the IRS to allow contributions to be tax de- Stapp, and Evelyn’s husband, Joe Bensie. ductible, almost all of our citizens would auto- Their children have given the Baca’s eight ON INTRODUCING THE ANTI-TER- matically assume that the group was legiti- grandchildren, Lindsay, Courtney, Brandy, RORISM CHARITY PROTECTION ACT mate. The IRS does an excellent job applying Larry, Erica, Adrian, Ryan and Mathew, and its regulations very stringently. Unfortunately, one great-grandchild, Brooklyn. according to the IRS, the Holy Land Founda- I commend Florenio and Escolastica for HON. STEVE ISRAEL tion did receive these benefits. demonstrating their commitment to marriage OF NEW YORK Currently, the IRS by internal regulation de- and family. The couple has provided love and IN THE HOUSE OF REPRESENTATIVES nies charities affiliated with terrorism a tax de- ongoing support to their children, grand- Thursday, December 20, 2001 duction. This is all well and good, but the fact children and great-grandchild playing an active is that this could be challenged in court. I be- role in all of their raising. Mr. ISRAEL. Mr. Speaker, I rise today to in- lieve that the IRS needs a stronger tool. I be- Today the Baca’s spend most of their time troduce the Anti-Terrorism Charity Protection lieve that this restriction must be in the law. relaxing at home and visiting their family. Act, a bill that will not only ensure that organi- Finally, Mr. Speaker, during consideration of Escolastica remains very active at Mt. Saint zations supporting terrorism are denied the the Financial Anti-Terrorism Act, I introduced Joseph’s Catholic Church. benefits of an American tax deduction, but will an amendment on this issue that Chairman Mr. Speaker, on behalf of the United States protect innocent citizens from donating well-in- OXLEY, Mr. LAFALCE, and the Committee on Congress and the people of Califomia, I ex- tentioned contributions to organizations that Financial Services were gracious enough to tend our sincere congratulations to Mr. and misappropriate funds to support terrorism. accept, though it did not make it through con- Mrs. Florenio Baca. Mr. Speaker, since September 11th, we ference. The amendment asked that Treasury f have learned a great deal about Osama bin study how terrorist organizations may use Laden and the al Qaeda terrorist network. Bin charities to fund their operations. I am gratified TRIBUTE TO DR. BRENDA DAVIS, Laden apparently is rich, with a personal for- to see that the Department of the Treasury OUTGOING PRESIDENT, CORONA tune of over $300 million. In addition, a com- and Secretary O’Neill seem to be focusing on CHAMBER OF COMMERCE plex global financial network exists to supple- this issue and would encourage them to con- ment his personal fortune. Alarmingly, evi- tinue doing so. HON. KEN CALVERT dence suggests that organizations in the Mr. Speaker, if we are going to win the War OF CALIFORNIA United States and abroad have cloaked them- on Terrorism, we must fight the war on every IN THE HOUSE OF REPRESENTATIVES selves as charitable groups to help funnel front. The financial front is one important bat- Thursday, December 20, 2001 funds to al Qaeda. tleground and we must do everything we can The President has already frozen the assets to ensure that our soldiers—not only in Af- Mr. CALVERT. Mr. Speaker, I rise today to of the Wafa Humanitarian Organization, the Al ghanistan behind rifles but here in America in honor and pay tribute to an individual whose Rashid Trust, the Makhtab al-Khidamat and front of computer screens—have the weapons dedication to the community and to the overall the Society of Islamic Cooperation. These they need to defend America. well-being of my hometown of Corona, CA, is were groups that were supposedly charitable [From the New York Times, Dec. 10, 2001] exceptional. The City of Corona has been for- organizations, but were mere conduits for rais- BUSH FREEZES ASSETS OF BIGGEST U.S. MUS- tunate to have dynamic and dedicated busi- ing money for the treacherous acts of Sep- LIM CHARITY, CALLING ITADEADLY TERROR ness and community leaders who willingly and tember 11 and other acts of terrorism around GROUP unselfishly give time and talent to making their the world. (By David E. Sanger and Judith Miller) communities a better place to live and work. On December 3rd, the Administration froze WASHINGTON, DEC. 4—President Bush sig- Dr. Brenda Davis is one of these individuals. the assets of the Holy Land Foundation for nificantly broadened his counterattack on On January 5, 2002, Dr. Davis will be hon- Relief and Development, a foundation based terrorist groups today, freezing the assets of ored as the outgoing 2001 President of the in Richardstown, Texas. According to a De- the largest Muslim charity in the United States. Mr. Bush accused the charity of sup- Corona Chamber of Commerce. Currently Pro- cember 5th article in The New York Times: vost of the Norco Campus at Riverside Com- porting Hamas, the Palestinian militant Mr. Bush and Treasury Secretary Paul group that took responsibility for three sui- munity College, Brenda provides great leader- O’Neill said today that they believe many cide bombings in Israel over the weekend. ship, administration and supervision over her Muslims who contributed to the Holy Land Mr. Bush’s announcement was a strong faculty and students. A person with passion Foundation did not know where their money demonstration of solidarity with Prime Min- and principles, who has strived to have a posi- was going. ‘‘Innocent donors who thought ister Ariel Sharon of Israel, who has urged

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00057 Fmt 0666 Sfmt 0634 E:\CR\FM\A20DE8.095 pfrm07 PsN: E20PT1 E2396 CONGRESSIONAL RECORD — Extensions of Remarks December 20, 2001 that Hamas be treated with the same sever- items such as file cabinets, office furniture Act, which will help provide relief from student ity as Al Qaeda’s terrorist network. and computers in accordance with President loan deadlines and administrative require- White House officials said they had Bush’s order. ments to victims and their families of the Sep- planned to move against the charity and two Movers using a tractor-trailer arrived with banks that helped finance Hamas later this the seizure notice at about 8 a.m. and tember 11 terrorist attacks, and for members month, but sped up the action after the worked into the night. of the military who are called up for active bombings, which killed 25 people and wound- Steven Emerson, an expert in Islamic ter- duty in response to those attacks. S. 1793 ed almost 200, many of them teenagers. ror networks, said that the United States provides the Secretary of Education with the Treasury officials said the charity, the knew as early as 1993 that Hamas leaders authority to waive specific aspects of the stu- Holy Land Foundation for Relief and Devel- were ‘‘meeting in America and using Holy dent aid programs to make sure that these opment, based in Richardson, Tex., had been Land Foundation as a conduit to raise people are not adversely affected financially under investigation since 1993. money for terrorism, recruit support, and by being victims of these attacks or being on In a statement the charity denied allega- undermine the U.S.-sponsored peace proc- tions that it provides financial support to ess.’’ active duty. terrorists. It said ‘‘the decision by the U.S. S. 1793 is similar to H.R. 3086, which government to seize the charitable donations f passed the House in October by a vote of of Muslims during the holy month of Rama- RECOGNIZING THE ACHIEVEMENTS 415Ð0. The authority granted by the HEROS dan is an affront to millions of Muslim OF MESA Act is similar to authority granted during Americans.’’ Desert Storm, and expires on September 30th, A senior official said the administration 2003. The HEROS Act addresses issues of had delayed acting for fear of harming the HON. HILDA L. SOLIS F.B.I. investigation of the charity. Search loan repayment for individuals directly affected OF CALIFORNIA warrants were executed today when federal by the attacks, and the student aid eligibility officials seized documents at the charity IN THE HOUSE OF REPRESENTATIVES for these individuals, while ensuring the integ- headquarters and other offices. Thursday, December 20, 2001 rity of the student loan programs. The Sec- International political considerations were retary may help such individuals by reducing also in play, other administration officials Ms. SOLIS. Mr. Speaker, I rise today to or delaying monthly student loan payments, or said. The White House debated whether mov- congratulate Mathematics, Engineering, by lifting obligations for repayment by military ing against Arab extremist groups could Science Achievement (MESA) of the Univer- students, or other actions that help such bor- weaken the coalition Mr. Bush has assem- sity of California for being selected as one of bled in the war on Afghanistan. ‘‘The bomb- rowers avoid inadvertent technical violations or the five most innovative public programs in the defaults. ings changed the politics of this consider- country by Innovations in American Govern- ably,’’ a senior administration official said. The HEROS Act would also allow the Sec- Speaking in the Rose Garden this morning, ment, a project of the John F. Kennedy School retary to help institutions and organizations Mr. Bush appeared to side with Mr. Sharon of Government at Harvard University, the Ford participating in the Federal student aid pro- in his characterization of Hamas. ‘‘Hamas is Foundation, and the Council for Excellence in grams that are affected by the attacks so that one of the deadliest terror organizations in Government. they may receive temporary relief from certain the world today,’’ he said, adding that it I have long supported MESA, which helps ‘‘has obtained much of the money it pays for administrative requirements. For such institu- educationally disadvantaged students to excel tions, some administrative requirements may murder abroad right here in the United in math and science. MESA encourages stu- States.’’ be rendered unreasonable to meet as a result The statement was something of a turn- dents to develop an academic path to college of the September 11 attacks. around for the administration. Its first list and attain baccalaureate degrees in math and Congress will also have the opportunity to of terrorist groups subject to American ac- science fields. Parents are encouraged to be- learn about the effectiveness of these waivers, tion, released days after the Sept. 11 attacks, come involved and learn that college can be as the Secretary will be required to report on made no reference to Hamas. A second list a reality for their children. In addition, MESA the waivers granted and make recommenda- released in October called Hamas and some brings in industry representatives in science 20 other militant groups terrorist organiza- tions for any statutory or regulatory changes fields to introduce the students to science- that may help provide these students relief in tions, but said few had assets in the United based career options. States. the future. It is difficult to assess how effective the Eighty-five percent of MESA’s graduating As we all know, September 11 had a dev- administration’s new campaign will be in high school seniors go on to college, com- astating impact on our Nation and our econ- slowing Hamas. Officials said the group re- pared to only fifty percent of California’s grad- omy. The HEROS Act will provide crucial relief lied on American charities that solicit funds uating high school seniors overall. Seven to those students who were victims of this hor- in many mosques around the country for other states have established programs based rible event, and will also protect the eligibility tens of millions of dollars each year. Hamas on California’s MESA model. Today, more of students serving in the military. By helping has long said that the money goes to social than twelve percent of the nation’s historically causes, easing the suffering of Palestinians. military students remain eligible for student The Treasury and F.B.I. say they have evi- underrepresented students who attain bacca- aid, we can help ensure that our next genera- dence the money is siphoned to the organiza- laureate degrees in engineering are MESA tion of leaders is properly prepared to face an tion’s terrorist arm. students. increasingly interconnected global environ- The State Department says that Hamas The Innovations in American Government ment, and can help rebuild our nation and pro- also receives some funding from Iran, but program identifies outstanding problem-solving tect against future attacks. The HEROS Act even more from wealthy patrons in Saudi and creativity in public sector programs. This Arabia and Palestinian expatriates in the thus is looking to the future, while helping year 1,200 programs were nominated for the those burdened by our recent past and I sup- gulf. The success of the Bush administra- award. These programs underwent an ex- tion’s crackdown will depend largely on its port S. 1793. tremely rigorous assessment process before ability to persuade those countries to follow f suit. Innovations determined its winners. Mr. Bush and Treasury Secretary Paul I applaud MESA on its accomplishments REGARDING MONITORING OF O’Neill said today that they believe many and wish the program continued success in WEAPONS DEVELOPMENT IN IRAQ Muslims who contributed to the Holy Land helping California students succeed. Foundation did not know where their money SPEECH OF f was going. ‘‘Innocent donors who thought they were helping someone in need deserve HIGHER EDUCATION RELIEF OP- HON. BARBARA LEE protection from these scam artists,’’ Mr. PORTUNITIES FOR STUDENTS OF CALIFORNIA O’Neill said at the White House. The Treas- ACT OF 2001 IN THE HOUSE OF REPRESENTATIVES ury also announced action against the Al Aqsa Bank and the Beit al Mal Holdings Wednesday, December 19, 2001 SPEECH OF Company, a bank that it described as ‘‘direct Ms. LEE. Mr. Speaker, I rise today in oppo- arms of Hamas.’’ HON. PATSY T. MINK sition to this resolution. So far, a half dozen banks in the United OF HAWAII I want to be very clear: I strongly support in- States have frozen $1.9 million of the Holy spection of Iraqi weapons facilities. This reso- Land Foundation’s assets, Treasury officials IN THE HOUSE OF REPRESENTATIVES lution, however, is not the best way to accom- said today. Wednesday, December 19, 2001 In Richardson, F.B.I. agents and local po- plish that goal. lice officers stood guard outside the Holy Mrs. MINK of Hawaii. Mr. Speaker, I want to We clearly stand at a moment in history Land Foundation offices as movers removed express my support for S. 1793, the HEROS when we must reinvent our foreign policy to

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00058 Fmt 0666 Sfmt 9920 E:\CR\FM\A20DE8.099 pfrm07 PsN: E20PT1 December 20, 2001 CONGRESSIONAL RECORD — Extensions of Remarks E2397 meet new challenges. Renewed arms inspec- impede the extradition of criminals to U.S. ju- tap laws and included on the list of Federal tions of Iraq should be part of that new matrix, risdiction. The administration acknowledges crimes of terrorism. but smarter sanctions and humanitarian en- that capital punishment is not required to im- Mr. Speaker, I fully support prompt ratifica- gagement must also be undertaken. plement the Conventions. Yet, even while ad- tion and implementation of the International Engagement is crucial. We should work with mitting that the provision is unnecessary to im- Conventions for the Suppression of Terrorist our allies to forge a policy that strengthens the plement the Convention, the administration Bombings and the Suppression of the Financ- cause of peace and stability in the Middle justifies the inclusion of this new death penalty ing of Terrorism. However, I am concerned East. provision by claiming that it simply tracks cur- that H.R. 3275 includes controversial changes There are some who call for an invasion of rent law. to U.S. domestic law that go well beyond Iraq. I am strongly opposed to such a step. This justification is without merit. Under U.S. those changes required to bring our laws into Opposition to a United States assault on law, the death penalty is justified for its deter- conformity with the requirements of those Iraq is found not only in the capitals of the rent effect. Surely in this case there is no pu- agreements. Middle East but throughout much of the rest of nitive or deterrent basis for the death penalty. Specifically, we must avoid the redundancy the world as well. In this instance, those that the Conventions of ancillary provisions relating to the death International leaders such as United Nations target are willing to commit suicide for their penalty, wiretapping, money laundering, and Secretary General Kofi Annan and former criminal causes. In this instance, it cannot be RICO predicates. To this end, during the re- South African President Nelson Mandela have argued in good faith that fear of the death cent Judiciary Committee markup of this I strongly voiced their opposition to such an at- penalty will prevent terrorists from carrying out joined my colleagues, Mr. SCOTT and Mr. tack, arguing that the only lasting solutions lie acts of terrorism. DELAHUNT in their opposition to certain ancil- in collective international efforts. f lary provisions of this bill in relation to treaty As Kofi Annan said earlier this month, ‘‘Any approval. attempt or any decision to attack Iraq today TERRORIST BOMBINGS CONVEN- While I fully support the efforts of our law will be unwise and could lead to a major esca- TION IMPLEMENTATION ACT OF enforcement professionals in light of the re- lation in the region.’’ President Mandela 2001 cent attacks against this Nation, I am con- warned that bombing Iraq would be a disaster cerned that prosecutors should be limited in SPEECH OF that would inject ‘‘chaos into international af- the extent to which they can cast the widest fairs.’’ HON. SHEILA JACKSON-LEE possible net, often to the great detriment of Therefore, I must oppose this resolution not OF TEXAS those who were not initially target by Con- because I oppose inspections but because I IN THE HOUSE OF REPRESENTATIVES gress when the legislation was enacted. believe it is too inflammatory and will make in- Many of these provisions have already been Wednesday, December 19, 2001 spections less likely, not more likely. included in the anti-terrorist bill which has This is the wrong resolution at the wrong Ms. JACKSON-LEE of Texas. Mr. Speaker, since been passed into law on October 26, time. At this moment we face a crisis in the the International Convention for the Suppres- 2001. Therefore, to include the same provi- Middle East as the Israeli-Palestinian conflict sion of Terrorist Bombings was initiated by the sions in H.R. 3275 would be redundant and threatens to spin out of control. That must be United States in the wake of the 1996 bomb- would serve no purpose. As a matter of fact, the epicenter of our concern right now. Yes, ing of Khobar Towers in Saudi Arabia. It re- Mr. Chertoff of the Department of Justice stat- we want inspections, but this is not the best quires signatories to criminalize terrorist bomb- ed recently that these provisions are not even way to achieve them. ings aimed at public, governmental, or infra- required in order to implement the treaties. f structure facilities and to prosecute or extra- Moreover, most party states to the Conven- dite those responsible. The United States has tions do not tolerate the death penalty, but are TERRORIST BOMBINGS CONVEN- not yet ratified the convention, which went into still in compliance with the treaty. This could TIONS IMPLEMENTATION ACT force in May of this year. The legislation be- have a profound effect on extradition and re- fore us, H.R. 3275, implements the Inter- sult in an inordinate burden on our criminal SPEECH OF national Convention for the Suppression of justice system. HON. CAROLYN C. KILPATRICK Terrorist Bombings, These necessary changes could have easily OF MICHIGAN Specifically, H.R. 3275 makes it a Federal have been facilitated on the floor by allowing IN THE HOUSE OF REPRESENTATIVES crime to unlawfully deliver, place, discharge or amendments, and I regret that we were not al- detonate an explosive device, or to conspire Wednesday, December 19, 2001 lowed to address these issues due to the sus- or to attempt to do so, in a public place, public pensions calendar. Ms. KILPATRICK. Mr. Speaker, while I sup- transportation system, or in a State or Federal Despite these concerns, it is in our best in- port the ratification and implementation of the facility. It provides penalties of up to life in terest, as well as in the interest of the inter- International Conventions for the Suppression prison, or death for perpetrators if the bombing national community, that we comply with the of Terrorist Bombings and the Suppression of resulted in fatalities, and also provides for the treaty. Our message that we will not tolerate the Financing of Terrorism in H.R. 3275, I can- prosecution or extradition of perpetrators who terrorism in any way, shape, or form, must be not support the overall bill. I am concerned commit crimes outside of the United States, strong and clear. that bill includes controversial language that but who are subsequently apprehended in this I believe that this bill fulfills this obligation. will jeopardize future enforcement of these country. f Conventions. Additionally, H.R. 3275 implements the I believe that the provision in title I that au- International Convention for the Suppression CONFERENCE REPORT ON H.R. 3061, thorizes the imposition of the death penalty for of the Financing of Terrorism, which requires DEPARTMENT OF LABOR, the offenses set forth in section 102.2 is su- signatories to prosecute or extradite people HEALTH AND HUMAN SERVICES, perfluous and unnecessary. Our experience who contribute to, or collect money for, ter- AND EDUCATION, AND RELATED with other nations, as it pertains to the U.S. rorist groups. AGENCIES APPROPRIATIONS death penalty, should guide our actions on the It also makes it a Federal crime to directly ACT, 2002 floor today. Courts in Canada and France or indirectly provide or collect funds to carry have refused to extradite criminals to the out , in full or in part, specific acts of terrorism. SPEECH OF United States, citing our continued insistence It also makes it a crime for any U.S. national HON. KEN BENTSEN on the imposition of the death penalty. A or entity, both inside and outside the country, OF TEXAS South African Constitutional Court ruled that a to conceal or disguise the nature, location or IN THE HOUSE OF REPRESENTATIVES suspect on trial in Manhattan in connection source of any funds provided or collected to with the bombing of the American Embassy in carry out terrorist acts. It also provides for the Wednesday, December 19, 2001 Tanzania should not have been turned over to prosecution or extradition of perpetrators who Mr. BENTSEN. Mr. Speaker, I rise in strong United States authorities without assurances commit these crimes outside of the United support of H.R. 3061, the Fiscal Year 2001 that he would not face the death penalty. States, but who are subsequently appre- Labor, Health and Human Services, and Edu- At a time when we are seeking the coopera- hended in this country. cation Appropriations bill. This legislation tion of nations to bring international criminals Finally, provisions in the bill make the would provide $395 billion for the Departments to justice, it makes no sense to authorize this crimes of terrorist bombings and terrorist fi- of Labor, Health and Human Services, and death penalty provision, which may, in fact, nancing ‘‘predicate offenses’’ under U.S. wire- Education, and related agencies. This $395

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00059 Fmt 0666 Sfmt 9920 E:\CR\FM\A20DE8.103 pfrm07 PsN: E20PT1 E2398 CONGRESSIONAL RECORD — Extensions of Remarks December 20, 2001 billion funding level represents an 11 percent this legislation provides $23.3 billion for the CONFERENCE REPORT ON H.R. 3061, increase above last year’s budget. I am espe- National Institutes of Health (NIH), an increase DEPARTMENTS OF LABOR, cially pleased that this legislation would pro- of 15 percent or $3 billion more than last HEALTH AND HUMAN SERVICES, vide a 15 percent increase for education fund- year’s budget. This $23.3 billion NIH budget is AND EDUCATION, AND RELATED ing and 15 percent increase or $23.3 billion for our fourth payment to double the NIH’s budget AGENCIES APPROPRIATIONS biomedical research conducted through the over five years. Earlier this year, I organized ACT, 2002 National Institutes of Health (NIH). two bipartisan letters in support of a $3.4 bil- With regard to education, I am pleased that lion increase for the NIH. I am a strong sup- SPEECH OF this bill would dramatically increase funding, porter of maximizing federal funding for bio- HON. NITA M. LOWEY for education programs by providing $6.8 bil- medical research through the NIH. I believe OF NEW YORK lion or 15 percent over FY 2001 levels and that investing in biomedical research is fiscally IN THE HOUSE OF REPRESENTATIVES $3.9 billion above the President’s request. responsible. Today, only one in three meri- Wednesday, December 19, 2001 Over the last five years, the average annual torious, peer-reviewed grants which have been rate of new educational investment has been judged to be scientifically significant will be Mrs. LOWEY. Mr. Speaker, I rise today in 13 percent. This legislation would increase the funded by the NIH. This higher budget will strong support of the conference report and I education investment to 17 percent—the high- help save lives and provide new treatments for urge its adoption. I want to thank the Ranking est in a decade. While the bill does not in- such diseases as cancer, heart disease, dia- Member, Mr. OBEY, for yielding me this time clude separate funding for the class-size re- betes, Alzheimer’s, and AIDS. Much of this and for his strong and forceful leadership not duction initiative, I am pleased that the pro- NIH-directed research will be conducted at the only on this bill, but also for the American peo- gram was redirected into teacher quality state teaching hospitals at the Texas Medical Cen- ple. grants. Under this legislation, these state I want to recognize the Chairman of our ter. In 2000, the Texas Medical Center re- grants will receive a $2.9 billion increase to Subcommittee, Mr. REGULA. He has been an ceived $289 million in grants from the NIH. help schools reduce class size and provide absolute pleasure to work with and has gone professional development for teachers and In addition, I support the $4.3 billion budget out of his way to ensure that the bill was craft- other school employees. Additionally, the com- for the Centers for Disease Control, a $431 ed in a bipartisan manner and that the con- mittee’s inclusion of $975 million for the Presi- million increase above last year’s budget. The cerns of Members on both sides of the aisle dent’s Reading First initiation will enable CDC is critically important to monitoring our were considered. schools to bring proven, research-based read- public health and fighting disease. Of this $4.3 Mr. Speaker, this conference report provides ing programs to students in the critical early billion CDC budget, $ 1.1 billion will be pro- tremendous increases for health, education learning years. The $1 billion increase for 21st vided to address HIV/AIDS programs and to and worker safety and training. We’ve been Century After School Centers will provide stu- combat tuberculosis. This CDC budget also able to follow up on the promises we made on dents with a quality after school programs. provides $627 million to provide immunizations this floor last week when we passed the ESEA And for students continuing on to higher edu- to low-income children. In Texas, there are conference report in this bill. Increases in Title cation, the increase in the Pell Grant max- many children who are not currently receiving I funding will ensure that our most disadvan- imum grant to $4,000 will enable low-income the immunizations that they need to stay taged children have access to a quality edu- students to meet today’s ever-increasing edu- healthy. This CDC program will help to mon- cation. Pell Grants will reach a maximum of cational costs. Additionally, the bill wisely re- itor and encourage low-income families to get $4,000 per student, giving low-income stu- jects proposed enrollment cuts to Head Start, the immunizations that will save children’s dents a helping hand in paying for college. preventing possible cuts for as many as 2,500 lives and reduce health care costs. Investing Overall, the bill boosts education funding by children from this critically important program. in our children is a goal which we all share. over $1 billion, to its highest level ever. I am also pleased that the committee in- I also want to highlight that this agreement In health programs, the bill continues to pro- cluded a 18 percent increase in the federal provides $285 million for pediatric graduate vide an unprecedented level of funding for share of special education costs. This agree- medical education (GME) programs. As the medical research. We are in an age of tre- ment provides $8.7 billion for educating chil- representative for Texas Children’s Hospital mendous discovery in medical research, and dren with disabilities, $1.3 billion more than (TCH), which is one of the nation’s inde- the resources provided to NIH will help find this year’s funding. In 1975, Congress passed pendent pediatric training facilities, I am treatments and cures for many diseases. Public Law 94Ð142, the Individuals with Dis- pleased that this bill fully funds this critically There are increases for mental health re- abilities Education Act (IDEA), which com- important program. This $285 budget is $50 search and treatment, HIV/AIDS programs, mitted the federal government to fund up to 40 million more than last year’s budget and is the and programs for the elderly. And, we address percent of the educational costs for children same level which has been authorized for this the growing threat of bioterrorism by giving the with disabilities. However, the federal govern- program. Under current law, independent chil- CDC, our leader in this fight, greater re- ment’s contribution has never exceeded 15 dren’s hospitals such as TCH can only receive sources to help keep our nation secure. percent, a shortfall that has caused financial Medicare GME funding for those patients Even with these vast increases for so many hardships and difficult curriculum choices in which they treat who are Medicare bene- programs, we know that next year will be very local school districts. According to the Depart- ficiaries. Since many of TCH’s patients are not different. The surpluses we’ve enjoyed have ment of Education, educating a child with a Medicare eligible, current GME programs fall disappeared. And, the President’s tax cuts will disability costs an average of $15,000 each to help to pay for the cost of training our na- take up more and more of the federal budget as we go forward. We’re just beginning to fund year. However, the federal government only tion’s pediatricians. Last year, TCH received education and healthcare at the levels they provides schools with an average of just $833. approximately $8 million from this program, deserve. I am concerned, as are many of my While I believe the funding increase in this which is more than half of the cost of training colleagues, that we will not be able to provide legislation represents a step in the right direc- physicians, residents and fellows at TCH. This this same level of funding next year. tion, I believe we must abide by our commit- bill is an important step in the right direction to ment to fund 40 percent of IDEA costs, and I I want to mention one area of critical impor- ensure that all hospitals receive assistance to tance—the need to combat obesity in this am hopeful that we will consider greater fund- help defray the cost of training physicians. ing increases in the next fiscal year. country. The Surgeon General reported last While the overall bill is a good one, there I am also pleased that this agreement in- week that two out of three American adults are many important programs that were level- cludes funding for several projects which I are overweight. In fact, he estimates that obe- funded or eliminated under this legislation. To have spearheaded. This bill provides $440,000 sity will cause more deaths than smoking in that end, I look forward to working with my for the Center for Research on Minority Health the coming years. Reducing the rate of obesity colleagues to continue funding for these pro- (CRMH) at the University of Texas M.D. An- can prevent unnecessary illness and death. grams at adequate levels, or in the case of derson Cancer Center. This $440,000 budget We’ve been so successful in convincing peo- school modernization, to work for its reinstate- is the third installment in my effort to examine ple to quit smoking, and this should be the ment. In total, though, this bill makes impor- cancer rates among minority and underserved next big fight for public health. tant investments in education, and will provide populations. The CRMH is a comprehensive I know that Chairman REGULA and Mr. OBEY America’s children with the resources they cancer control program to address minority will be very interested in that effort, and I want need to succeed and be productive members and medically underserved populations. to again thank the Chairman and Ranking of our society. I urge my colleagues to support this legisla- Member for their tireless efforts in putting this As a Co-Chair of the Congressional Bio- tion and vote for this important health, edu- bill together. I urge adoption of the conference medical Research Caucus, I am pleased that cation and labor funding measure. report.

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00060 Fmt 0666 Sfmt 0634 E:\CR\FM\A20DE8.106 pfrm07 PsN: E20PT1 December 20, 2001 CONGRESSIONAL RECORD — Extensions of Remarks E2399 LIVING AMERICAN HERO H.R. 3487 is a step in the right direction. It more than President Bush originally re- APPRECIATION ACT will provide for funding public service an- quested. However, as Chair of the Congres- nouncements to recruit nurses, loan repay- sional Children’s Caucus, I am disappointed SPEECH OF ment programs, and scholarship programs. It that funding for elementary and secondary HON. LANE EVANS also requires the GAO to report to Congress education programs fell short of the levels in OF ILLINOIS on several key issues in the nursing arena— the reauthorization of the Elementary and Sec- IN THE HOUSE OF REPRESENTATIVES including nursing faculty shortages and dis- ondary Education Act (ESEA; H.R. 1) which Wednesday, December 19, 2001 parities among hiring practices of nurses be- would authorize $26.5 billion for elementary tween not for profit and for profit entities. and secondary education programs, and which Mr. EVANS. Madam Speaker, the remarks Again, I thank my colleagues for their sup- awaits the President’s signature. that I made in support of H.R. 2561 were port of this very important piece of legislation. I am also disappointed that the conferees made in the context of the measure as it was f failed to keep in the bill $925 for elementary originally introduced by my colleague, the gen- and secondary school renovation, particularly tleman from Pennsylvania, CURT WELDON. The CONFERENCE REPORT ON H.R. 3061, in light of the current state of disrepair that we measure passed by the House under suspen- DEPARTMENTS OF LABOR, find our schools in. sion of the rules, however, was an amended HEALTH AND HUMAN SERVICES, I am pleased with the large increase to $7.5 version of H.R. 2561. As amended, H.R. 2561 AND EDUCATION AND RELATED billion in special education funding, raising did not embody certain provisions that had AGENCIES APPROPRIATIONS spending roughly 19 percent higher than the been included in the original bill. ACT, 2002 $6.8 billion in fiscal 2001. I am also pleased With regard to H.R. 2561 as amended, I with the increases in spending for Pell Grants SPEECH OF want to express my strong support for this leg- to $10.3 billion from roughly $8.8 billion in fis- islation that demonstrates our continued com- HON. SHEILA JACKSON-LEE cal 2001, raising grants from $3,750 to mitment to recipients of the Medal of Honor. In OF TEXAS $4,000. the name of the Congress, the President pre- IN THE HOUSE OF REPRESENTATIVES Americans will also be well-served by the sents the Medal of Honor. It is the highest other increases such as: the 18% increase to Wednesday, December 19, 2001 honor that can be bestowed upon any Amer- $1 billion for after school centers, the $1.6 bil- ican citizen. Only 3,455 Americans have been Ms. JACKSON-LEE. Mr. Speaker, I am lion (18%) increase to $10.35 billion for Title 1 awarded Medals of Honor, and today only 149 pleased with the bipartisan bill passed out of grants, the 45% increase to $665 million for of them are living. the House LaborÐHHSÐEducation sub- Bilingual Education, the 31% increase to $2.85 As the Ranking Democrat on the Veterans’ committee and brought to the floor by unani- billion for Teacher Quality grants, and the 15% Affairs Committee, as a senior member of the mous consent. The bill generally makes sure increase to $1.1 billion for Impact Aid. Armed Services Committee, and as a United that we continue our commitment to education This appropriation also increases funding to States Marine, I feel strongly that these he- and health care, preserves our most important the Department of Labor by 3%, or about $12 roes deserve special recognition and consider- worker protection programs, and includes the billion, rather than cut by 3% as proposed by ation. Their valiant contributions must be hon- largest increase in new educational investment the President. This is a $310 million increase ored and supported by all Americans. in a decade. This is good news for the Amer- over fiscal 2001 spending and provides growth Accordingly, I am pleased that H.R. 2561 ican people. in the major employment, training and worker would increase from $600 to $1,000 the However, I am extremely disappointed that protection programs. It also targets $54.2 bil- monthly amount paid to recipients of the this $123.8 billion appropriation does not in- lion to the Department of Health and Human Medal of Honor and provide for retroactive, clude a greatly needed provision to expand in- Services, increasing $5 billion over fiscal 2001 lump-sum payments to such recipients to re- surance coverage for mental illness. This pro- and $2.5 billion over the President’s initial re- flect this increase. In addition, the bill would vision, known as ‘‘mental health parity’’ would quest. provide an additional medal for use in display have required group health plans offering However, much more should have been or exhibits to those recipients who desire one, mental health coverage to make that coverage done to help displaced workers, particularly in and increase the criminal penalties associated available at the same level as insurance cov- light of those recently displaced by the Sep- with the unauthorized purchase or possession erage for physical illness. tember 11 attacks on America , including more of a Medal, or with the false representation of This was a crucial social issues issue that than 100,000 airline employees have lost their its awarding. was included in the Senate version of the jobs. These attacks radically altered the pros- Madam Speaker, I am proud to be an origi- spending bill (H.R. 3061) that should have pects of workers and business in every com- nal cosponsor of H.R. 2561 and I strongly been adopted by the conferees. The adoption munity in America. urge my colleagues to join me in supporting by the conferees of an amendment offered by Unfortunately, by all indicators, the reces- our Medal of Honor recipients. Representative RANDY ‘‘DUKE’’ CUNNINGHAM sion is upon us and it seems clear that we f that would keep the Wellstone-Domenici Men- have not yet hit bottom. So while hard working NURSE REINVESTMENT ACT tal Health Parity Act of 1996 (P.L. 104Ð204) in Americans continue to loose their jobs through effect for another year is notable, but should no fault of their own, we must do all that we SPEECH OF not replace the responsibility of the conferees can to provide them with the benefits and HON. MARK FOLEY to address this important issue to protect all safety net that they need and deserve. Americans from disparities in insurance cov- That’s why I was proud to join Representa- OF FLORIDA erage. tive HASTINGS and over 150 other members of IN THE HOUSE OF REPRESENTATIVES According to the Wall Street Journal, the the House in co-sponsoring H.R. 2946, the Wednesday, December 19, 2001 cost to American businesses of untreated Displaced Workers Relief Act of 2001. This bill Mr. FOLEY. Mr. Speaker, I want to thank all mental illnesses is $70 billion per year, and served as the companion bill to S. 1454, the members of this chamber for passing H.R. the National Institute of Mental Health esti- which was introduced in the Senate by Sen- 3487, the Nurse Reinvestment Act. This bill mates that the cost to society is $300 billion ator JEAN CARNAHAN of Missouri. It would have will provide immediate relief to a sector of the per year. These costs are reflective of the provided those who lost their jobs in the wake healthcare industry in desperate need of our 23% unemployment rate among American of the attacks of September 11 with the ability support. The nursing shortage is approaching adults who suffer from depression, and the to pay rent, put food on their table, buy school critical levels and it is clearly affecting patients fact that four of the ten leading causes of dis- books for their children, while trying to get by throughout our Nation. ability in America are mental disorders. in these difficult times. These men and women who work on the The mental health parity provision would Specifically, the bill extended unemployment front lines of our healthcare system everyday have addressed these issues while increasing benefits from 26 to 78 weeks, provided 26 face tremendous hurdles. I have met with the levels of productivity in the American work- weeks of unemployment insurance benefits for nurses and their representatives who have force. It is a seriously missed opportunity that workers who would not otherwise qualify, ex- thoroughly explained the problems with man- this provision was not included in this appro- tended Job Training Benefits from 52 to 78 datory overtime, the need for staffing stand- priation. weeks, provided up to 78 weeks of federally ards, and protection for those employees who Having said that, I am pleased that this ap- subsidized COBRA premiums, and provided report unsafe conditions or practices in the fa- propriation includes $48.9 billion for the De- temporary Medicaid coverage for up to eight- cilities in which they work. partment of Education, roughly $4.4 billion een months to those workers without COBRA

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00061 Fmt 0666 Sfmt 9920 E:\CR\FM\A20DE8.108 pfrm07 PsN: E20PT1 E2400 CONGRESSIONAL RECORD — Extensions of Remarks December 20, 2001 coverage. Many of these benefits would have breast or cervical cancer in the United States alike, as well as student financial aid adminis- served Americans well had they been included despite the fact that early detection and treat- trators. We have received letters of support in this Conference Report. ment of these diseases could substantially de- from the United States Student Association, I am, however, pleased with the large in- crease this mortality. While passage of last the State Public Interest Research Groups, the crease to the National Institutes of Health by year’s bill made significant strides to address National Association of Student Financial Aid targeting $23.3 billion, which helps meet our this problem, it failed to do so for Native Administrators, the American Council on Edu- pledge to double fiscal 1998 spending on NIH American women and that is why we are here cation, the Consumer Bankers of America, by fiscal 2003. today. and the Education Finance Council. The bill addresses the new threats that the Mr. Speaker, I want to thank my colleagues, Passage of S. 1762 is crucial for ensuring nation faces by increasing the Centers for Dis- especially Representatives WATTS, SHERROD the availability of funds for qualified students ease Control (CDC) by increasing funding BROWN, WAXMAN, CAMP, and HAYWORTH for to go to college. As we know, more and more 11% above last year. Also, it maintains the working with me to bringing S. 1741 to the students are going to college these days, and Low-Income Home Energy Assistance Pro- floor today. I especially want to thank Jack more are doing so with the help of student gram (LIHEAP) at the FY 2001 level, an in- Horner of Representative J.C. WATT’s Repub- loans. S. 1762 will mean that more students crease of $300 million over the President’s re- lican Conference staff, Tim Westmoreland of can go on to college and will be more able to quest. Finally, it rejects proposed enrollment HENRY WAXMAN’s office, Katie Porter of participate in the 21st century. cuts to Head Start, preventing potential cuts of SHERROD BROWN’s office, and Tony Martinez I urge a ‘‘yes’’ vote for S. 1762. as many as 2,500 children from the program. and Mike Collins of my office for their vigilant f Finally, the support I received for Houston in and diligent work to ensure that this legislation fighting prostate and breast cancer—with did not fall victim to the end-of-the-year ECONOMIC SECURITY AND $290,000 for minority testing centers and crunch. WORKER ASSISTANCE ACT OF 2001 $150,000 for Sisters Network—will help save Mr. Speaker, I urge all my colleagues to SPEECH OF lives. support this bi-partisan and important legisla- Overall, this bill, while not perfect, address- tion so that we may send it to the President HON. WILLIAM J. COYNE es many of the problems that we currently for his signature to ensure that Native Amer- OF PENNSYLVANIA ican and Native Alaskan women are not de- face and fulfills our obligations to the Amer- IN THE HOUSE OF REPRESENTATIVES nied life-saving breast and cervical cancer ican people. I support it, and I urge my col- Wednesday, December 19, 2001 leagues to also support it. treatment. f f Mr. COYNE. Mr. Speaker, I rise today in op- position to this second deeply flawed eco- ESTABLISHING FIXED INTEREST THE NATIVE AMERICAN BREAST nomic stimulus bill. RATES FOR STUDENT AND PAR- AND CERVICAL CANCER TREAT- The measure before us today represents a ENT BORROWERS MENT TECHNICAL AMENDMENT modest improvement over the first stimulus ACT OF 2001 SPEECH OF bill, but it is still inadequate. While the bill would extend unemployment benefits for an SPEECH OF HON. PATSY T. MINK additional 13 weeks, it does nothing to help OF HAWAII part-time and low-wage workers. HON. TOM UDALL IN THE HOUSE OF REPRESENTATIVES OF NEW MEXICO And while this version of the Republicans’ Wednesday, December 19, 2001 IN THE HOUSE OF REPRESENTATIVES partisan stimulus bill appears to provide more Mrs. MINK of Hawaii. Mr. Speaker, I want to assistance to laid-off workers so that they can Wednesday, December 19, 2001 express my support for S. 1762, which will keep their health insurance, it would, in fact, Mr. UDALL of New Mexico. Mr. Speaker, let provide students with low interest rates on provide them and their families with little help. me begin by thanking Chairman TAUZIN for al- Federal student loans, while preserving the Serious concerns have been raised about the lowing S. 1741, introduced by my good friend health of the student loan industry by ensuring administration of the proposed 60 percent re- Senator JEFF BINGAMAN, to be considered by the current and future participation of lenders fundable tax credit for health insurance pre- the House. I have appreciated working with in this market. By helping lenders stay in the miums, but even if such assistance could be him to bring S. 1741 to the floor and know that student loan markets, we are making sure that smoothly administered, it would in many cases the issue of early detection and prevention qualified students will have access to a higher not provide enough help to many families— holds a personal closeness to the both of us education, regardless of their financial back- who would still be unable to afford to pay their and to other members of this body. ground. health insurance premiums. Such premiums On April 3, 2001, I introduced H.R. 1383, S. 1762 represents a carefully brokered cost, on average, about $220 a month for an the companion to S. 1741, along with Rep- compromise between those representing the individual and $580 a month for a family. resentatives WATTS, HAYWORTH, SHERROD needs and interests of students, and those Moreover, concerns have been raised that en- BROWN, CAMP, DELAURO, KENNEDY, KILDEE representing the lending industry. This com- actment of such a credit could undermine our and over one hundred bi-partisan co-sponsors. promise essentially fixes a problem that would country’s existing system of predominantly The consideration of this legislation today have arisen in 2003 in the student loan inter- employer-provided health insurance. represents the diligent and bi-partisan work est rate formula that, according to the lending In addition, the legislation before us still pro- over the last month and within the past few community, would have dried up resources for vides an inadequate level of funding to States weeks and hours, by several Members of students needing funds for college by poten- to help them deal with the crisis. The National Congress and their staffs. The work of these tially reducing returns for such loans below the Governors’ Association estimates that the individuals ensures that a simple but very im- cost of issuing such loans. The fix that was combined budget shortfall for all 50 States portant technical correction to the Breast and worked out preserves the current interest rate could exceed $50 billion in 2002. Some provi- Cervical Cancer Treatment and Prevention Act formula that determines how much lenders re- sions in the bill before us would actually exac- of 2000 (P.L. 106Ð354) will allow coverage of ceive from the Federal government, while erbate the fiscal challenge facing many breast and cervical cancer treatment to Native locking in today’s very low interest rates for states—the proposal to allow larger tax write- American women. students. offs for purchases of new equipment, for ex- Mr. Speaker because of a technical defini- The formula will change in 2006 so that the ample, which has been estimated to reduce tion in P.L. 106Ð345, American Indian and Na- interest rate students pay will be fixed at 6.8 state revenues by more than $5 billion next tive Alaskan women were and currently are percent, which is an historically low interest year alone. excluded from this law’s eligibility for treat- rate for students, and will eliminate confusion Finally, this latest bill still allocates much of ment. And, as states determine whether to ex- among borrowers of student loans regarding its ‘‘economic stimulus’’ to tax cuts for cor- pand their Medicaid programs to provide changing interest rates and formulas. With the porations and upper-income households. breast and cervical cancer treatment as an op- changes in S. 1762, students benefit by get- While this Republican stimulus bill would not tional benefit, passage of this legislation will ting guaranteed low interest rates, and by hav- repeal the corporate alternative minimum tax, ensure Native American and Alaskan Women ing the availability of funds for loans, and the it would effectively eviscerate it. This latest are included to receive treatment. stability of the student loan industry ensured. stimulus bill would also speed up the phase- It is estimated that during 2001, almost As I mentioned, S. 1762 is supported by down of marginal tax rates for taxpayers in the 50,000 women are expected to die from groups representing students and lenders upper tax brackets—just like the first stimulus

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00062 Fmt 0666 Sfmt 9920 E:\CR\FM\A20DE8.112 pfrm07 PsN: E20PT1 December 20, 2001 CONGRESSIONAL RECORD — Extensions of Remarks E2401 bill. Moreover, while the argument for these a boy from Pakistan who was sold into bond- and World Trade Center victim, Jeffrey L. Fox tax cuts is that we need to spur additional in- ed labor and killed when he protested with a poem written by his thirteen year old vestment in businesses and factories, this ar- against the treatment of children in his daughter, Jessica. Jessica asked that I share country. When Kielburger, now 18, completed gument rings hollow given that businesses are his speech, he also received an ovation. her poem with the world and I am honored to currently struggling to eliminate the excess ca- Bursts of affection and admiration flashed do so: pacity that exists in many industries. I believe around that enormous room in wave after A PLACE OF MEMORIES wave. When the two young leaders expressed that the most effective stimulus the federal The gleaming towers stood in the sky, government can provide at this time is to ex- their confidence in humanity’s future, it was evident that their experiences had increased Majestic looking and up so high. pand demand for goods and services—and The sun shines down on towers so great, that the most effective way to expand that de- their awareness of the goodness and gen- erosity existing in so many members of the No one knowing about their awful fate. mand is to make up some of the lost income human species. They had a glow of love and Without a warning a plane hit hard. in households that have been hit by recent respect around them. New York would be forever scarred. lay-offs. There were hundreds of students in that Minutes later, another plane crashed, In short, I believe that, like the first eco- huge room, students from high school and Leaving the second tower extremely nomic stimulus bill rammed through the House colleges, students with a wide range of gifts smashed. by the Republican leadership in October, this and ambitions, students from many ethnic The towers crumbled down to Earth legislation is both unfair and unwise. It does backgrounds. Their faces were shining with Because two planes crashed in their berth. excitement. They were clearly inspired by People beneath the towers ran. too little to help the people who have been the two young leaders who were being ac- laid off and too Much to help the people who Now the towers no longer stand. claimed. The rescue workers worked non-stop, are well off. Moreover, it does too little to stim- I was among the hundreds of older persons Searching the rubble bottom to top. ulate the economy in the coming year and who participated in that gathering of glo- People pulled out became less and less rious beings. I lived through four wars and I loses too much revenue in subsequent years. And using their strength became a test. I urge my colleagues to vote against this poor- had witnessed terrible sufferings. Yet I also The gleaming towers stood in the sky, ly crafted legislation. witnessed noble acts in many places. In spire of wars and other calamities, in spite of ter- Majestic looking and up so high. f rorism and all the threats that existed, I was Where the twin towers used to be Is now a place of memory. HUMANITY’S GREATNESS IN A sure that human beings would go from TIME OF PERIL height to height, achieving more in each At this time in our Nation’s history, when we generation. struggle to find solace and draw lessons from The celebration on Nov. 9 convinced me again that Thomas Merton was right when acts of terror against us, we gain strength and HON. LOIS CAPPS perspective from those families these atro- OF CALIFORNIA he asserted in one of his books that it is ‘‘a glorious destiny to be a human being.’’ I saw cious acts left behind. We find strength in the IN THE HOUSE OF REPRESENTATIVES the light of that glory in the faces of the memory of Jeffrey Fox and in the words of his Thursday, December 20, 2001 young and the old when they leaped to their brave and courageous daughter. Mrs. CAPPS. Mr. Speaker, I rise to bring to feet to respond to a Nigerian woman and a Mr. Speaker, again, I rise to honor the Fox the attention to my colleagues, a thoughtful ar- Canadian man. family and I ask my colleagues to join me in I was grateful for the privilege of being in recognizing their legacy to our community and ticle by Frank Kelly that appeared in the Santa that room on that marvelous night. I was Barbara News-Press, entitled ‘‘Humanity’s grateful for the work of the Nuclear Age New Jersey. Greatness in a Time of Peril’’ on November Peace Foundation in bringing so many won- f 25, 2000. derful persons together. I was grateful for Mr. Frank K. Kelly has been a journalist, a the fact that I had participated in founding HONORING THE HARD WORK AND speechwriter for President Truman, Assistant it and supporting it for 20 years. PATRIOTISM OF THE CITIZENS to the Senate Majority Leader, Vice President I felt an exultance, which reminded me of OF VIDALIA, TOOMBS COUNTY, the surge of joy I had felt when I took part GA of the Center for the Study of Democratic In- in the liberation of Paris in August of 1944. I stitutions, and Vice President of the Nuclear had never expected to ride into that city as Age Peace Foundation. a member of a victorious army. I had never HON. JACK KINGSTON Mr. Speaker, I submit the following article: expected to be embraced by so many people, OF GEORGIA [From the Santa Barbara News-Press, Nov. to be hailed as a liberator. It was an ecstasy IN THE HOUSE OF REPRESENTATIVES 25, 2001] I had not earned. It was one of many gifts showered upon me in a fortunate life. Thursday, December 20, 2001 VOICES—HUMANITY’S GREATNESS IN A TIME OF On the night of Nov. 9, I felt the exaltation Mr. KINGSTON. Mr. Speaker, in response PERIL that comes when many people are cele- (By Frank K. Kelly) brating the mystery and the wonder of being to the terrorist attacks on September 11th, the In a time of trouble and sorrow, with fears human. We rejoiced together, we felt the people of Vidalia, GA took it upon themselves of terrorism shadowing the future, 500 endless possibilities for greatness that can to undertake a project to show their support human beings gathered in Santa Barbara on occur when people acknowledge their unity for America. The town of 10,000 did not have Nov. 9 to honor two young leaders who have in the spirit of love. We became fully aware an American flag that stood in the middle of shown courage and compassion in lives of that hatred and cruelty can be overcome, town, and they were driven to raise over high achievement. The gathering was de- and there can be peace and justice in this $3,000 to erect a flag pole which will perma- scribed as ‘‘An Evening for Peace,’’ but it world for all. I strongly believe that every one who was nently display the American flag in the center was far more than that. It was a celebration, of town. a tremendous manifestation, of the creative in that room that night will carry the powers of humanity. starburst of that celebration in their lives SPECIAL ORDER FOR VIDALIA FLAG POLE Two Peace Leadership Awards were pre- through all the pains and problems of the Mr. Speaker, I rise today to share with you sented that evening by the Nuclear Age coming years. I thrill to the hope that a tre- the dedication and hard work of some remark- Peace Foundation. One went to Hafsat mendous Age of Fulfillment is dawning for able Americans; the citizens of Vidalia, GA. the whole human family. Abiola, founder of the Kudirat Initiative for September 11th, 2001 affected every single Democracy, a dauntless advocate for human f one of us, and the 3 month anniversary of this rights throughout the African continent. A beautiful young woman with a delicate face, CENTRAL NEW JERSEY HONORS tragedy served to remind us of that infamous she spoke of the struggles she had endured WORLD TRADE CENTER VICTIM day. All over the country people from different and the triumphs that had been achieved. MR. FOX WITH A POEM WRITTEN states, neighborhoods, and backgrounds have When she finished, the people in the banquet BY HIS DAUGHTER JESSICA come together under a common bond as room rose to their feet in a spontaneous ova- Americans. It has been no different in my tion. home state of Georgia, and I would like to The second Peace Leadership Award was HON. RUSH D. HOLT share with you today, Mr. Speaker, the dedi- given to Craig Kielburger, founder of the OF NEW JERSEY cation and patriotism of the good people of Free the Children organization, who initi- IN THE HOUSE OF REPRESENTATIVES Vidalia. Vidalia is not a very large city having ated a movement that led to the release of Thursday, December 20, 2001 thousands of children from conditions of a population of 10,000. Yet many people may labor enslavement. He created it when he Mr. HOLT. Mr. Speaker, I rise to honor and have heard of a particular crop that comes was 12 years old, stirred by the tragic fate of recognize Plainsboro, New Jersey resident from Vidalia, the famous, sweet Vidalia Onion.

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00063 Fmt 0666 Sfmt 9920 E:\CR\FM\A20DE8.115 pfrm07 PsN: E20PT1 E2402 CONGRESSIONAL RECORD — Extensions of Remarks December 20, 2001 However, Mr. Speaker, it is time that these gently to see the event culminate on such a Michael Slater’s commitment to environ- fine folks be known for more than just their special day, Mrs. Reid named organizations mental issues ultimately defined his career onion. and others who have played a role. and his life. As President of the Friends of the ‘‘We really appreciate our young people for In the aftermath of September 11th, the their assistance,’’ she said. ‘‘Dr. Tim Smith Earth Foundation he had the opportunity to people of Vidalia took it upon themselves, to was very receptive to the idea.’’ In his ab- work on those environmental issues closest to erect and commemorate a flag pole and sence, students represented the local school his heart. Following his tenure as President, American flag to fly over their town. Under the system and included Victoria Waring and he continued his activism on environmental direction of Mrs. Lynette Reid and the local John Carroll, J.D. Dickerson Primary issues. Daughters of the American Revolution, the School; Tiffany Fowler, Sally D. Meadows Michael Slater graduated from Stanford Uni- people of Toombs’ county seat went out and Elementary School; Regan Morgan and versity. He began his career as an investor, raised money from local citizens and compa- Evander Baker, J.R. Trippe Middle School; but felt deeply connected to those issues and Matt Stanley, Student Government As- nies to make this dream a reality. As a result sociation, and Blake Tillery, Senior Class which affect our Earth. He believed, correctly, of the hard work of its citizens, the city of President, Vidalia Comprehensive High that those issues which affect the earth affect Vidalia, GA now has an American flag that School. all of us. Therefore, he devoted himself to flies 24 hours a day, and is illuminated at Gifts from organizations included Amer- working to make the Earth a better, safer and night. It serves as a constant reminder of what ican Legion Post #97, Mr. Hershel C. Connell, healthier place for us all to live. For this rea- we believe in and who we are. It is my honor Commander, American Legion Post #97 Aux- son, he has been cited by many as not only to acknowledge them here today, and com- iliary, Ms. Denise Pitman, President; Down- an environmentalist, but a humanitarian; a fit- mend them for their quick work. town Vidalia Association, Mrs. Linda Clarke, ting label for someone so committed to valuing President; Vidalia Lions Club, Mr. Joel Gar- Mr. Speaker, it is actions like these that rett, President; and Vidalia Women’s Club, and preserving humanity. make me proud of our nation. Stories like Mrs. Joe Brice, President. He shared his love of the environment and these have occurred all across the country, Mrs. Reid further admonished the in-kind commitment to environmental issues with his and I want to thank each and every one who services of Harry Moses, Harry Moses Con- wife of 34 years, Teri. Along with her work on have been a part of America’s response. I struction Company, Ron Lambert of Georgia environmental issues she has worked tire- would especially like to thank the people of Power Company and Jerry Fields of Vidalia- lessly as a preservationist to save precious Vidalia, GA. The patriotism, devotion, and de- Lyons Concrete Company, all of whom landmarks and to ensure that important pieces termination that they have demonstrated em- worked together to erect the staff. One other company, who elected to remain anonymous, of our history are maintained. A day rarely bodies some of the best American qualities. as a local electrician and Vietnam veteran went by in which the two of them did not take I am also pleased, Mr. Speaker, in closing who donated the equipment and installing in the beauty of flowers, plants and other nat- to submit some articles from the Vidalia Ad- the lighting necessary to keep the flag lit at ural wonders. They passed their appreciation vance-Progress about this patriotic project. night. and passion for the environment on to their [From the Advance-Progress, Nov. 14, 2001] A bronze plaque will be embedded at the two sons, Eric and Edward. Michael and Teri base of the flag staff. The plaque will be in- FLAG STAFF DEDICATED IN DOWNTOWN PARK would often travel to wilderness locations to- scribed in dedication to the ‘‘victims and he- gether. (By Kathy D. Bradford, Staff Reporter) roes of September 11, 2001,’’ and designated It may be considered by some as nothing that it was dedicated on November 11, 2001. Michael Slater believed it was his obliga- short of a miracle. Congressman Jack Kingston was unable to tion—and the obligation of all of us who are A special ceremony was held Sunday after- attend the ceremony. In absentia, he for- here today—to ensure that what we have noon in the Meadows Street Park to dedicate warded the following to Mrs. Reid: today will be here for the next generation to a 35-ft. illuminated flag staff and an Amer- ‘‘Dear Friends: It is with great pleasure that enjoy tomorrow. These are the words Michael ican flag. An impressive gathering of citizens I send my warmest greetings to you. Let me be Slater lived by. witnessed the patriotic event. the first to congratulate you on your initiative Mr. Speaker, I salute Michael Wylie Slater The desire to erect the flag staff originated and patriotism during these days following Sep- in the October 3 meeting of the Vidalia Chap- tember 11th. I am very proud of all that you today and I ask my fellow Members of Con- ter Daughters of the American Revolution. have accomplished and I commend your hard gress to join me in honoring the life and leg- Less than two months after actually solic- work. acy of this member of the community who will iting community support, the idea came to The money that you all have helped raise is a be so deeply missed. fruition. standing tribute to our country, and I can think f ‘‘This program is designed to dedicate this of no better way to show this pride than the flag flag staff and flag to the heroes of September pole which you are dedicating today. I wish to INTRODUCTION OF LEGISLATION 11,’’ said Mrs. R. Hugh Reid, coordinator of thank each and every one of you for making TO EXPAND THE EARNED IN- the event. this communitywide event possible and again COME TAX CREDIT ‘‘Remember, this is the 11th day, of the want to express my gratitude to everyone in the 11th month,’’ she said. ‘‘This Veterans Day 1st District. We have all been affected by Sep- also coincides with the second month anni- tember 11th, but we also have become a stronger HON. WILLIAM J. COYNE versary of the tragedy currently facing our nation. May God bless you, and may God bless OF PENNSYLVANIA nation.’’ America.’’ IN THE HOUSE OF REPRESENTATIVES Mrs. William F. Ledford, Past Regent of The ceremony concluded with everyone at- Vidalia DAR Chapter, and John Kea of the tending signing ‘‘God Bless America.’’ Thursday, December 20, 2001 Downtown Vidalia Association, opened the The eight-by-twelve foot flag will be flown Mr. COYNE. Mr. Speaker, since its incep- ceremony with 11 tolls of the bell in the ga- day and night to display the patriotism and tion in 1975, the Earned Income Tax Credit, or love of the United States as made evident by zebo in the park, followed by the Color EITC, has been an important part of the Fed- Guard of American Legion Post 97 presenting the rapid response of local citizens in mak- the flag of the United States of America. ing the project a reality. eral Government’s ‘‘safety net’’ of programs All stood at attention as the flag was un- for Americans living in poverty. Its effect on f furled, raised to the top of the staff, lowered children is especially significant. Over the to half-staff and then raised again. As if on IN RECOGNITION OF MICHAEL years, the EITC has succeeded in lifting more cue, the wind began to pick up and the flag, WYLIE SLATER children out of poverty than any other govern- with all its glory, began to color the sky ment program. with red, white and blue. The EITC was conceived as a ‘‘work bonus’’ Involving the youth of the area, Girl Scout HON. CAROLYN B. MALONEY Troop #355, Mrs. John Tyson, Troop Leader, OF NEW YORK alternative to a proposal to provide cash wel- led the Pledge of Allegiance, and the local IN THE HOUSE OF REPRESENTATIVES fare to low-income two-parent families. It was Boy Scout Troop, Mr. Allen Rice, Scout Mas- also seen as a way to lighten the burden of ter, responded with the American’s Creed. Thursday, December 20, 2001 Social Security taxes on low-income workers. A unison of voices filled the air as Mr. and Mrs. MALONEY of New York. Mr. Speaker, Over the years, the credit has been expanded Mrs. Jerome Toole led ‘‘The National An- I rise to pay tribute to Michael Wylie Slater, a and increased. This program demonstrates the them’’ accompanied by the Vidalia Com- beloved environmentalist and activist, who way in which government can improve the prehensive High School band under the direc- passed away on December 8, 2001. Michael lives of its citizens in a meaningful way. tion of Mr. Tim Quigley. And then it came time for special recogni- Slater was a compassionate, dedicated and However, notable pockets of poverty remain tion of the men and women who helped cre- active member of his community, located in in our country. For instance, 29 percent of all ate the minor miracle. Noting the contribu- the 14th Congressional District, which I rep- children in families having three or more chil- tions of local citizens who have worked dili- resent. His passing is truly a loss to us all. dren subsist at incomes below the poverty

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00064 Fmt 0666 Sfmt 9920 E:\CR\FM\A20DE8.119 pfrm07 PsN: E20PT1 December 20, 2001 CONGRESSIONAL RECORD — Extensions of Remarks E2403 level. This is more than double the poverty than full-time. They suggest that extending the A PROCLAMATION IN MEMORY OF rate among children in smaller families. Nearly maximum creditable earnings to the level cor- JEREMY W. KIDD three of every five poor children in this country responding with a full-time, minumum-wage live in families with three or more children. salary would be in keeping with the EITC pro- HON. ROBERT W. NEY Recently the General Accounting Office gram’s goal of ‘‘making work pay.’’ In other OF OHIO (GAO) determined that 4.3 million eligible words, workers could be expected to work IN THE HOUSE OF REPRESENTATIVES households did not claim the EITC in 1999, forgoing $2.6 billion in credits. The preponder- more hours if the income eligibility range for Thursday, December 20, 2001 the EITC were extended or if the credit earned ance (about 81 percent) of the $2.6 billion in Mr. NEY. Mr. Speaker, Whereas, Jeremy W. unclaimed credits would have gone to house- were increased. For childless workers, the Kidd is lovingly remembered by his parents, holds with three or more children. Households maximum creditable earnings will rise to family and friends; with no eligible children would have received $6,000, approximately 60 percent of those Whereas, Jeremy made each day of his life most of the remainder. The non-participation wages. full of excitement and goodness; rates for these two groups, 37 percent for Taken together, in 2002, these changes Whereas, Jeremy always had a smile on his households with three or more children and 55 would provide the following maximum EITC face and brought smiles to the faces of all percent for childless households (as compared amounts: Household with no qualifying chil- those he came in contact with; and to roughly 95 percent for all other house- Whereas, Jeremy’s kindness and consider- dren $918 (an increase of $542); household holds), are convincing evidence that more ation to others will always be remembered by needs to be done to expand and simplify the with 1 child $3,641 (an increase of $1,135); all whose lives he touched; EITC program. household with 2 children $4,284 (an increase Therefore, I invite my colleagues to join with The current structure of the EITC fails to of $144); household with 3 or more children me and the citizens of Ohio in mourning the help larger families, with three or more chil- $4,820 (an increase of $680). loss of Jeremy W. Kidd, yet celebrating his life dren, since the highest level of credit is given In order to balance program costs, my bill and his memory. to families with two or more children. Com- f bining these larger families with families hav- increases the phaseout rates for all categories ing two children ignores the unique needs of to allow benefits to phase out at the same in- PERSONAL EXPLANATION large families, which have experienced more come level as is the case under current law. difficulty in moving from welfare to work due to Finally my bill makes two important changes HON. JOHN N. HOSTETTLER increased family expenditures such as child to the administration of the EITC—it eliminates OF INDIANA care costs. the investment income disqualification test and Today I am introducing legislation to remedy IN THE HOUSE OF REPRESENTATIVES it simplifies the rules for an abandoned spouse this problem by creating a new EITC benefit Thursday, December 20, 2001 to qualify for the credit. level for families with three or more children. Mr. HOSTETTLER. Mr. Speaker, I was un- This new level, with a credit percentage of 45 At at time when our country is undergoing avoidably absent from the House of Rep- percent, will provide a higher benefit for these so much change, we must not forget that our resentatives on December 5 through Decem- families than what they currently receive under low-income families continue to remain at the ber 13, 2001, due to the illness and subse- the ‘‘two or more children’’ category (which margins of our economy and could be the first quent death of my dear mother. Although I re- has a 40 percent credit rate). to suffer the effects of the current economic ceived the appropriate leave of absence from My bill also will double the credit percentage downturn. Their needs existed before the trag- the House, I would like my constituents in the for workers with no qualifying children from ic events of September 11 and probably have 8th District of Indiana to know how I would 7.65 percent to 15.3 percent. This change rec- only worsened since then. have voted if I were present on Roll Call votes ognizes the fact that there is virtually no safety #469 through #498. For the record, I would net for people in this category, who face high I believe that the creation of the additional have voted in the following ways: federal tax burdens. The 15.3 percent credit EITC category involving three or more children Hostettler Vote percentage is the amount needed to offset the will benefit approximately 3.2 million house- full amount of the payroll tax, including the holds, thereby further reducing poverty among Rollcall Nos.: 498 Yea; 497 No; 496 Yea; employer’s share. In his paper, ‘‘should the larger families. In addition to helping larger 495 Yea; 494 Yea; 493 Yea; 492 Yea; 491 EITC for Workers Without children be Abol- families to make ends meet, this new benefit Yea; 490 Yea; 489 No; 488 No; 487 Yea; 486 ished, Maintained, or Expanded?’’ Robert Yea; 485 Yea; 484 Yea; 483 Yea; 482 Yea; level will provide these families with funds for Greenstein, of the Center on Budget and Pol- 481 No; 480 No; 479 Yea; 478 Yea; 477 Yea; icy Priorities, notes that single workers are the upward mobility and asset building capabili- 476 Yea; 475 Yea; 474 Yea; 473 Yea; 472 only group in the United States who begin to ties. Even a moderate increase in income will Yea; 471 No; 470 Yea; 469 Yea. owe federal income tax before their income assist these families to improve their cir- f reaches the poverty line; the federal income cumstances and work toward escaping pov- tax codes taxes them somewhat more deeply erty. IN RECOGNITION OF KEN MILLS into poverty. Besides offsetting the full amount AND NIKI STERN OF THE LEX- This bill also will benefit the U.S. economy INGTON DEMOCRATIC CLUB of the payroll tax (which most economists be- by providing additional incentives for more lieve is borne by workers in the form of lower people, especially low-income women, to join wages), Mr. Greenstein states that expanding HON. CAROLYN B. MALONEY the work force. The economic stimulus func- the credit might also serve two other beneficial OF NEW YORK tion of my bill cannot be overlooked, especially purposes—it might draw more single workers IN THE HOUSE OF REPRESENTATIVES into the labor force and it should raise the in- at a time when we are providing inducements Thursday, December 20, 2001 comes of some poor, non-custodial fathers, for corporations and higher income earners. thereby increasing their ability to pay child The Center on Budget and Policy Priorities Mrs. MALONEY of New York. Mr. Speaker, support. supports this legislation as a ‘‘bill that would I rise to pay tribute to Ken Mills and Niki In addition, the bill will increase EITC bene- Stern, leaders of the Lexington Democratic better reward and encourage work, reduce fits for all family categories by raising the max- Club in New York City. The Lexington Demo- imum creditable earnings used to calculate the poverty among the working poor, and simplify cratic Club has been such a vibrant part of the credit. For all eligible individuals with children, the EITC.’’ They further state ‘‘This is one of community in which I live and represent. It is this amount for the year 2002 will be $10,710, the most worthy initiatives policymakers could a pleasure to pay tribute to two of its most il- the annual wages of a full-time worker earning pursue.’’ lustrious leaders. the minimum wage. Isabel Sawhill and Adam I urge my colleagues to join me in this effort After graduating Phi Beta Kappa and Magna Thomas, of the Brookings Institution, in their to further enhance the highly successful EITC Cum Laude from Princeton University, Ken paper ‘‘A Hand Up for the Bottom Third: to- by supporting this legislation, and, in doing so, Mills went on to make his mark in the field of ward a New Agenda for Low-Income Working communications. After working for many years by supporting a respectable income level for Families,’’ note that those who work full-time in the private sector, including a tenure as those Americans who are, and have been, left at a low wage job do not necessarily qualify Vice-president and Director of Promotion and for more benefits than do those who work less behind. Communications for The Katz Agency, in 1978

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00065 Fmt 0666 Sfmt 9920 E:\CR\FM\A20DE8.122 pfrm07 PsN: E20PT1 E2404 CONGRESSIONAL RECORD — Extensions of Remarks December 20, 2001 he was appointed Director of Communications named Katharine Lee Bates penned what has till all success be nobleness for the New York City Office of Economic De- become the theme song for this extraordinary And every gain divine! velopment by Mayor Ed Koch. In 1981, he unity. On a trip to Colorado, Bates ascended O beautiful for patriot dream was appointed Director of Public Information Pike’s Peak and basked in the wonder of the That sees beyond the years for the New York State Banking Department. ‘‘purple mountain majesties’’ and ‘‘spacious Thine alabaster cities gleam Undimmed by human tears! He was then named Vice-president and Direc- skies’’ she saw. This scene inspired her to America! America! tor of Media Relations for The Chase Manhat- write ‘‘America the Beautiful.’’ God shed his grace on thee tan Bank. In 1994 he founded Ken Mills Com- Returning to Wellesley, Bates sent the four And crown thy good with brotherhood munications which he continues to operate stanzas of ‘‘America the Beautiful’’ to the Con- From sea to shining sea! today. gregationalist, where they first appeared in Ken Mills first joined the Lexington Demo- print, appropriately, on July 4th, 1895. The f cratic Club during John F. Kennedy’s 1960 hymn garnered immediate popularity and was DEPARTMENT OF VETERANS AF- campaign for President. After serving on the initially set to music by Silas G. Pratt. FAIRS HEALTH CARE PROGRAMS Club’s Executive Committee he was elected But the attention Bates’ hymn drew prompt- ENHANCEMENT ACT OF 2001 its president. He then went on to become a ed her to rewrite it in 1904, making it more District Leader, serving in that position until simple and direct. After a few more changes SPEECH OF 1978. In 1995 he began another tenure as over the next several years, the final version, Lexington Democratic Club President, a posi- the one so many Americans know today, was HON. CHRISTOPHER H. SMITH tion he held until early this year. Ken, who finished in 1913 and set to the tune of Samuel OF NEW JERSEY also serves on Manhattan Community Board 8 A. Ward’s ‘‘Materna.’’ In true American spirit, IN THE HOUSE OF REPRESENTATIVES is not only an effective leader, but one who Bates gave countless hundreds of free permis- Tuesday, December 11, 2001 has earned the respect and admiration of pro- sions for the use of ‘‘America the Beautiful.’’ fessional and political colleagues. In recogni- Today we turn to Bates’ timeless words for Mr. SMITH of New Jersey. Mr. Speaker, the tion of his many outstanding achievements, comfort and for a reminder of our nation’s ‘‘Department of Veterans Affairs Health Care we pay tribute to Ken Mills today. strength. These words remind us of the her- Programs Enhancement Act of 2001’’ reflects Niki Stern has long demonstrated a commit- oism of the firefighters and policemen who re- a compromise agreement that the Senate and ment to social and political causes. A long sponded to the attacks on the World Trade House of Representatives Committees on Vet- time community activist, she worked exten- Center and the Pentagon; of the soldiers, sail- erans’ Affairs reached on certain provisions of sively on behalf of the Peace Movement in ors and flyers fighting the war on terrorism; a number of bills considered by the House Westchester County, New York in the 1960’s. and of the cavalcade of heroes who have and Senate during the 107th Congress, includ- She remained actively involved upon moving fought over the years for civil rights, voting ing: H.R. 2792, a bill to make service dogs to New York City and in 1979 began working rights, and workers’ rights—those ‘‘heroes available to disabled veterans and to make as a Community Liaison for Assemblyman prov’d/In liberating strife/Who more than self various other improvements in health care Mark Alan Siegel and for New York City their country loved.’’ They remind us that the benefits provided by the Department of Vet- Comptroller Harrison J. Goldin. She was also ‘‘thoroughfare of freedom’’ we so often take for erans Affairs, and for other purposes, by the appointed to Community Board 8. granted has been blazed by pioneering pil- House Committee on Veterans’ Affairs on Oc- She also joined the Lexington Democratic grims working even up to today. They remind tober 16, 2001, and passed by the House on Club where she was elected to many offices, us of the incredible resolve of New York, one October 23, 2001 [hereinafter, ‘‘House Bill’’]; culminating in her 1993 election as president. of the ‘‘albaster cities’’ that ‘‘gleam/Undimmed S. 1188, a bill to enhance the authority of the Working with Ken Mills, since 1995, as Execu- by human tears.’’ But most of all, Bates’ words Secretary of Veterans’ Affairs to recruit and re- tive Vice-president, she initiated the Club’s an- remind us of the indomitable American spirit tain qualified nurses for the Veterans Health nual mid-winter receptions and dinners and that stretches high and proud, ‘‘from sea to Administration, and for other purposes, re- many other innovations which helped restore shining sea.’’ ported by the Senate Committee on Veterans’ the Lexington Democratic Club to its position Perhaps the most expressive theme of Affairs on October 10, 2001, as proposed to as the largest political organization on Manhat- ‘‘America the Beautiful’’ is that we Americans be amended by a manager’s amendment tan’s East Side. They have made the Lex- constantly seek to be uplifted—that we invoke [hereinafter, ‘‘Senate Bill’’]; S. 1576, a bill to ington Democratic Club an invaluable part of divine help to mend our ‘‘ev’ry flaw,’’ that we amend section 1710 of title 38, United States the political landscape of New York City. know even our ‘‘golden’’ characteristics can be Code, to extend the eligibility for health care of Mr. Speaker, I salute Ken Mills and Niki further refined. That is a sign of far greater veterans who served in Southwest Asia during Stern and I ask my fellow Members of Con- strength than simply waving a flag and chant- the Persian Gulf War; and, S. 1598, a bill to gress to join me in recognizing the great con- ing ‘‘U-S-A!’’ amend section 1706 of title 38, United States tributions of both of these tremendously dedi- Mr. Speaker, in a testament to our national Code, to enhance the management of the pro- cated community leaders. unity, I ask unanimous consent that the com- vision by the Department of Veterans Affairs of specialized treatment and rehabilitation for f plete lyrics of ‘‘America the Beautiful’’ be en- tered into the RECORD. disabled veterans, and for other purposes, in- AMERICA THE BEAUTIFUL troduced on October 21, 2001. AMERICA THE BEAUTIFUL The House and Senate Committees on Vet- HON. RUSH D. HOLT (By Katharine Lee Bates) erans’ Affairs have prepared the following ex- O beautiful for spacious skies, OF NEW JERSEY planation of the compromise bill, H.R. 3447 For amber waves of grain, IN THE HOUSE OF REPRESENTATIVES (hereinafter referred to as the ‘‘Compromise For purple mountain majesties Agreement’’). Differences between the provi- Thursday, December 20, 2001 Above the fruited plain! America! America! sions contained in the Compromise Agree- Mr. HOLT. Mr. Speaker, I’m sure everyone God shed his grace on thee ment and the related provisions in the bills list- agrees that we now live in troubled times— And crown thy good with brotherhood ed above are noted in this document, except times of anxiety, of uncertainty, of struggle. From sea to shining sea! for clerical corrections and conforming But we also live in a time of incomparable na- O beautiful for pilgrim feet changes made necessary by the Compromise tional unity. You could look around the country Whose stern, impassioned stress Agreement, and minor drafting, technical, and and easily spot superficial signs of unity, such A thoroughfare for freedom beat clarifying changes. Across the wilderness! as the plethora of American flags displayed TITLE I—ENHANCEMENT OF NURSE RE- America! America! outside homes and businesses or a crowd at CRUITMENT AND RETENTION AU- god mend thine every flaw, a sports game chanting ‘‘U-S-A!’’ but the real THORITIES Confirm thy soul in self-control, truth is that the river of our national spirit runs Thy liberty in law! Subtitle A—Nurse Recruitment Authorities much deeper than flag-waving could ever O beautiful for heroes proved in liberating Current Law show. And in the fight against the evil that strife. Several VA programs under existing law now confronts us, the American people are Who more than self the country loved are designed to aid the Department in re- united like never before. And mercy more than life! cruiting qualified health care professionals More than a century ago, an English Lit- America! America! in fields where scarcity and high demand erature Professor from Wellesley College May God thy gold refine produce competition with the private sector.

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00066 Fmt 0666 Sfmt 0634 E:\CR\FM\A20DE8.127 pfrm07 PsN: E20PT1 December 20, 2001 CONGRESSIONAL RECORD — Extensions of Remarks E2405 The Department is authorized to operate the ever, licensed vocational nurses and certain At a time of looming crisis in achieving Employee Incentive Scholarship Program health care support personnel, whose em- adequacy of basic clinical staffing of VA fa- (hereafter EISP) under section 7671 of title ployment status is grounded in employment cilities, the Committees express concern 38, United States Code. Under the EISP, VA authorities in title 5 and title 38, United over whether such a policy guiding nurse may award scholarship funds, up to $10,000 States Code, are eligible for premium pay on qualifications may work against VA’s inter- per year per participant in full-time study, regularly scheduled tours of duty that in- ests and responsibilities to protect the safety for up to 3 years. These scholarships require clude Sundays. Saturday premium pay for of its patients by creating unintended short- eligible participants to reciprocate with pe- these employees is a discretionary decision ages of scarce health personnel. The Com- riods of obligated service to the Department. at individual medical facilities. mittees urge the Secretary to consider the Currently, enrollment in the scholarship pro- At retirement, VA registered nurses en- implications of continuing such a policy in gram is limited to employees with 2 or more rolled in the Civil Service Retirement Sys- the face of future shortages of nursing per- antecedent years of VA employment. Statu- tem receive annuity credit for unused sick sonnel. The American Association of Com- tory authority for this program terminates leave. This credit is unavailable, however, munity Colleges has reported that, each December 31, 2001. for registered nurses who retire under the year, more than 60 percent of new US reg- The Department is authorized to operate Federal Employee Retirement System. istered nurses are produced in two-year asso- the Education Debt Reduction Program Senate Bill ciate degree programs. The Department’s (hereafter EDRP) under section 7681 of title Section 121 would mandate that VA pro- current qualification standard for registered 38, United States Code. Under the EDRP, the vide Saturday premium pay to employees nurses may dissuade these fully licensed Department may repay education-related specified in Section 7454(b). health care professionals from considering loans incurred by recently hired VA clinical Section 122 would extend authority for the VA employment. professionals in high demand positions. Stat- Department to provide VA nurses enrolled in Subtitle C—Other Authorities utory authority for this program, a program the Federal Employee Retirement System Current Law not yet implemented by the Department, the equivalent sick-leave credit in their re- terminates on December 31, 2001. If imple- tirement annuity calculations that is pro- Section 7306(a)(5) of title 38, United States mented, the program would authorize VA to vided to other VA nurses who are enrolled in Code, requires that the Office of the Under repay $6,000, $8,000, and $10,000 per year, re- the Civil Service Retirement System. Secretary for Health include a Director of spectively, over a 3-year period, in combined Section 123 would require the Department Nursing Service, responsible to the Under principal and interest on educational loans to evaluate nurse-managed clinics, including Secretary for Health. obtained by scarce VA professionals. those providing primary and geriatric care Section 7426 of title 38, United States Code, Under sections 8344 and 8468 of title 5, to veterans. Several nurse-managed clinics provides retirement rights for, among oth- United States Code, the Department is au- are in operation throughout the VA health ers, nurses, physician assistants and ex- thorized to request waivers of the pay reduc- care system, with a preponderance of clinics panded-function dental auxiliaries with part- tion otherwise required by law for re-em- operating in the Upper Midwest Health Care time appointments. These employees’ retire- ployed Federal annuitants who are recruited Network. The evaluation would include in- ment annuities are calculated in a way that to the Department in order to meet staffing formation on patient satisfaction, provider produces an unfair loss of annuity for them needs in scarce health care specialties. experiences, cost, access and other matters. compared to other Federal employees. Con- Senate Bill The Secretary would be required to report gress has made a number of efforts since 1980 Section 111 would permanently authorize results from this evaluation to the Commit- to provide equity for this group, many mem- the EISP; reduce the minimum period of em- tees on Veterans’ Affairs 18 months after en- bers of whom are now retired. These individ- ployment for eligibility in the program from actment. uals, appointed to their part-time VA posi- 2 years to 1 year; remove the award limit for Section 124 would require the Department tions prior to April 6, 1986, under the employ- education pursued during a particular school to develop a nationwide clinical staffing ment authority of title 38, United States year by a participant, as long as the partici- standards policy to ensure that veterans are Code, have been penalized with lower annu- pant had not exceeded the overall limitation provided with safe and high quality care. ities by subsequent Acts of Congress that ad- of the equivalent of 3 years of full-time edu- Section 8110 of title 38, United States Code, dressed retirement annuity calculation rules cation; and, extend authority to increase the sets forth the manner in which medical fa- for other part-time Federal employees ap- award amounts based on Federal national cilities shall be operated, but does not in- pointed under the authority of title 5, United comparability increases in pay. clude reference to staffing levels for such op- States Code. Section 112 would permanently authorize eration. Section 7251 of title 38, United States Code, the EDRP; expand the list of eligible occupa- Section 125 would require the Secretary to authorizes the directors of VA health care tions furnishing direct patient care services submit annual reports on exceptions ap- facilities to request adjustments to the min- and services incident to such care to vet- proved by the Secretary to VA’s nurse quali- imum rates of basic pay for nurses based on erans; extend the number of years to 5 that fication standards. Such reports would in- local variations in the labor market. a Departmental employee may participate in clude the number of waivers requested and Senate Bill granted to permit promotion of nurses who the EDRP, and increase the gross award Section 131 would amend section 7306(a)(5) do not have baccalaureate degrees in nurs- limit to any participant to $44,000, with the of title 38, United States Code, to elevate the ing, and other pertinent information. award payments for the fourth and fifth office of the VA Nurse Executive by requir- Section 126 would require the Department years to a participant limited to $10,000 in ing that official to report directly to the VA to report facility-specific use of mandatory each; and provide limited authority (until Under Secretary for Health. overtime for professional nursing staff and June 30, 2002) for the Secretary to waive the Section 132 would amend section 7426 of eligibility requirement limiting EDRP par- nursing assistants during 2001. The Depart- ment has no nationwide policy on the use of title 38, United States Code, to exempt reg- ticipation to recently appointed employees istered nurses, physician assistants, and ex- on a case-by-case basis for individuals ap- mandatory overtime. This report would be required within 180 days of enactment. The panded-function dental auxiliaries from the pointed on or after January 1, 1999, through requirement that part-time service per- December 30, 2001. report would include information on the amount of mandatory overtime paid by VA formed prior to April 7, 1986, be prorated Section 113 would require the Department when calculating retirement annuities. to report to Congress its use of the authority health care facilities, mechanisms employed Section 133 would modify the nurse local- in title 5, United States Code, to request to monitor overtime use, assessment of any ity-pay authorities and reporting require- waivers of pay reduction normally required ill effects on patient care, and recommenda- ments. The section would clarify and sim- from re-employed Federal annuitants, when tions on preventing or minimizing its use. plify a VA medical center’s use of Bureau of such requests are used to meet its nurse House Bill Labor Statistics (BLS) information to facili- staffing requirements. The House bill has no comparable provi- tate locality-pay decisions for VA nurses. House Bill sions. Additionally, section 133 would clarify the The House bill has no comparable provi- Compromise Agreement Committees’ intent on steps VA facilities sions. Sections 121, 122, 123, 124, 125, and 126 are would take when certain BLS data were un- Compromise Agreement identical to the provisions in the Senate bill. available, thus serving as a trigger for the use of third-party survey information, and Sections 101, 102, and 103 follow the Senate The Committees are concerned about VA’s thereby reducing current restrictions on the language. current national policy requiring VA nurses to achieve baccalaureate degrees as one use of such surveys. Subtitle B—Nurse Retention Authorities means of quality assurance. VA has issued House Bill Current Law directive 5012.1, a directive that requires The House bill contains no comparable pro- Section 7453(c) of title 38, United States VA’s registered nurses to obtain bacca- visions. Code, guarantees premium pay (at 25 percent laureate degrees in nursing as a precondition over the basic pay rate) to VA registered to advancement beyond entry level, and to Compromise Agreement nurses who work regularly scheduled tours do so by 2005. This policy is effective imme- Sections 131, 132, and 133 follow the Senate of duty during Saturdays and Sundays. How- diately for newly employed nurses. bill.

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00067 Fmt 0666 Sfmt 0634 E:\CR\FM\A20DE8.131 pfrm07 PsN: E20PT1 E2406 CONGRESSIONAL RECORD — Extensions of Remarks December 20, 2001 Subtitle D—National Commission on VA Department to provide service dogs to vet- HUD income index in determining eligibility Nursing erans suffering from spinal cord injury or for treatment as a low-income family based Current Law dysfunction, other diseases causing physical upon the veteran’s permanent residence. The None. immobility, or hearing loss (or other types of current national threshold would remain in disabilities susceptible to improvement or place as the base figure if the HUD formula House Bill enhanced functioning) for which use of serv- determines the low-income rate for a par- Section 301 would establish a 12-member ice dogs is likely to improve or enhance their ticular area is actually less than that National Commission on VA Nursing. The ability to perform activities of daily living amount. The effective date of this change Secretary would appoint eleven members, or other skills of independent living. Under would be January 1, 2002, and would apply to and the Nurse Executive of the Department the provision, a veteran would be required to all means tests after December 31, 2001, using would serve as the twelfth, ex officio, mem- be enrolled in VA care under section 1705 of data from the HUD index at the time the ber. Members would include three recognized title 38, United States Code, as a prerequisite means test is given. representatives of employees of the Depart- to eligibility. Service dogs would be provided Compromise Agreement ment; three representatives of professional in accordance with existing priorities for VA Section 202 retains the current-law income associations of nurses or similar organiza- health care enrollment. threshold, but would significantly reduce co- tions affiliated with the Department’s health Senate Bill care practitioners; two representatives of payments from veterans near the threshold trade associations representing the nursing Section 201 would authorize the Secretary of poverty for acute VA hospital inpatient profession; two would be nurses from nursing to provide service dogs to service-connected care. The HUD low-income limits would be schools affiliated with the Department; and veterans with hearing impairments and with used to establish a family income determina- one member would represent veterans. The spinal cord injuries. tion within the priority 7 group. Those vet- Secretary would designate one member to Compromise Agreement erans with family incomes above the HUD serve as Chair of the Commission. Section 201 follows the House provision. income limits for their primary residences Section 302 would authorize the Commis- Any travel expenses of the veteran in ad- would pay the co-payments as otherwise re- sion to assess legislative and organizational justing to the service dog would be reimburs- quired by law. Veterans whose family in- policy changes to enhance the recruitment able on the same basis as such expenses are comes fall between the current income and retention of nurses by the Department reimbursed under Section 111, title 38, threshold level under section 1722, title 38, and the future of the nursing profession United States Code, for blind veterans ad- United States Code, and the HUD income within the Department. This section would justing to a guide dog. limits level for the standard metropolitan also provide for Commission recommenda- MANAGEMENT OF HEALTH CARE FOR CERTAIN statistical area of their primary residences, tions on legislation and policy changes to en- LOW-INCOME VETERANS would be required to pay co-payments for in- hance recruitment and retention of nurses Current Law patient care that are reduced by 80 percent by the Department. Section 1722(a) of title 38, United States from co-payments required of veterans with Section 303 would require the Commission Code, places veterans whose incomes are higher incomes. The effective date for this to submit to Congress and the Secretary a below a specified level—in calendar year change would be October 1, 2002. report on its findings and conclusions. The MAINTENANCE OF CAPACITY FOR SPECIALIZED report would be due not later than 2 years 2001, $23,688 for an individual without de- TREATMENT AND REHABILITATIVE NEEDS OF after the date of the first meeting of the pendents—within the definition of a person DISABLED VETERANS Commission. The Secretary would be re- who is ‘‘unable to defray’’ the cost of health quired to promptly consider the Commis- care. The section includes two other such in- Current Law sion’s report and submit to Congress the De- dicators of inability to defray: evidence of Section 1706 of title 38, United States Code, partment’s views on the Commission’s find- eligibility for Medicaid, and receipt of VA requires VA to maintain nationwide capacity ings and conclusions, including actions, if nonservice-connected pension. Veterans in to provide for specialized treatment and re- any, that the Department would take to im- these circumstances are adjudged equally habilitative needs of disabled veterans, in- plement the recommendations. unable to defray the costs of health care; as cluding those with amputations, spinal cord Sections 304 and 305 would delineate the such, they are eligible to receive comprehen- injury or dysfunction, traumatic brain in- powers afforded to the Commission, includ- sive VA health care without agreeing to jury, and severe, chronic, disabling mental ing powers to conduct hearings and meet- make co-payments required from veterans illnesses. To validate VA’s compliance with ings, take testimony and obtain information whose incomes are higher. Under current capacity maintenance, section 1706 includes from external sources, employ staff, author- law, a single-income threshold (with adjust- a requirement for an annual report to Con- ize rates of pay, detail other Federal employ- ments only for dependents) is the standard gress. The reporting requirement expired on ees to the Commission staff, and address used. April 1, 2001. other administrative matters. House Bill House Bill Section 306 would terminate the Commis- Section 103 would amend section 1722(a) of Section 102 would modify the mandate for sion 90 days after the date of the submission title 38, United States Code, to establish geo- VA to maintain capacity in specialized med- of its report to Congress. graphically adjusted income thresholds for ical programs for veterans by requiring the Senate Bill determining a non-service-connected vet- Department and each of its Veterans Inte- The Senate bill has no comparable provi- eran’s priority for VA care, and therefore, grated Service Networks to maintain capac- sions. whether the veteran must agree to make co- ity in certain specialized health care pro- Compromise Agreement payments in order to receive VA care. The grams for veterans (those with serious men- Sections 141, 142, 143, 144, 145 and 146 follow section’s purpose would be to address local tal illness, substance-use disorders, spinal the House bill, with certain modifications to variations in cost of care, cost-of-living or cord injuries and dysfunction, the brain in- the membership of the Commission. other variables that, beyond gross income, jured and blinded, and those who need pros- The Committees expect the National Com- impinge on a veteran’s relative economic thetics and sensory aids); and, would extend mission on VA Nursing to concern itself with status and ability to defray the cost of care. the capacity reporting requirement for 3 the full spectrum of occupations involved in In section 103, low-income limits adminis- years. tered by the Department of Housing and nursing care of veterans in the Veterans Senate Bill Health Administration, with specific ref- Urban Development (HUD) for its subsidized housing programs would establish an ad- S. 1598 similarly would modify current law erence to registered professional and li- with regard to VA’s capacity for specialized censed vocational nurses, clinical nurse spe- justed poverty-income threshold to be used services, but would require that medical cen- cialists, nurse practitioners, nurse managers in the ability-to-defray determination. The ters maintain capacity, in addition to geo- and executives, nursing assistants, and other actual threshold for determining an indi- graphic service areas; require that VA utilize technical and ancillary personnel of the De- vidual veteran’s ability to pay would be the uniform standards in the documentation of partment involved in direct health care de- greater of the current-law income threshold patient care workload used to construct re- livery to the nation’s veterans. In addition in section 1722 of title 38, United States ports under the authority; require the In- to statutory requirements, the Committees Code, or the local low-income limits set by spector General on an annual basis to audit expect the Secretary to appoint members to HUD. each geographic service area and each med- the Commission to reflect the wide variety Section 103 also would include a 5-year lim- ical center in the Veterans Health Adminis- of occupations and disciplines that con- itation on the effects of adoption of the HUD stitute the nursing profession within the De- low-income limits policy on system resource tration to ensure compliance with capacity partment. allocation within the Veterans Health Ad- limitations; and, prohibit VA from sub- ministration. Such allocations would not be stituting health care outcome data to satisfy TITLE II—OTHER MATTERS increased or decreased during the period by the requirement for maintenance of capac- PROVISION OF SERVICE DOGS more than 5 percent due to this provision. ity. Current Law The provision would take effect on October 1, Compromise Agreement None. 2002. Section 203 is derived substantially from House Bill Senate Bill the House bill, with addition of provisions Section 101 would amend section 1714 of Section 202 would amend section 1722 of from the Senate bill, including a require- title 38, United States Code, to authorize the title 38, United States Code, to include the ment that VA utilize uniform standards in

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00068 Fmt 0666 Sfmt 0634 E:\CR\FM\A20DE8.135 pfrm07 PsN: E20PT1 December 20, 2001 CONGRESSIONAL RECORD — Extensions of Remarks E2407 the documentation of workload; a clarifica- tential conflicts of interest, that funding for Section 105 would create a new Subchapter tion that ‘‘mental illness’’ be defined to in- ORCA field offices should be statutorily sep- VIII in Chapter 17 of title 38, United States clude post-traumatic stress disorder (PTSD), arated from the Medical and Prosthetic Re- Code, to incorporate provisions concerning substance-use disorder, and seriously and search Appropriation and associated with bereavement-counseling services for family chronically mentally ill services; a prohibi- the Medical Care Appropriation. ORCA ad- members of certain veterans and active duty tion from substituting outcome data to sat- vises the Under Secretary for Health on mat- personnel. A new section 1782 would provide isfy the requirement to maintain capacity; ters affecting the integrity of research, the counseling, training, and mental health serv- and, a requirement that the IG audit and safety of human-subjects research and re- ices for immediate family members. certify to Congress as to the accuracy of search personnel, and the welfare of labora- Section 105 would place in the new sub- VA’s required reports. tory animals used in VA biomedical research chapter the current dependent health care authorities known as ‘‘Civilian Health and PROGRAM FOR THE PROVISION OF CHIROPRACTIC and development. ORCA field offices inves- Medical Programs—Veterans Affairs’’ CARE AND SERVICES TO VETERANS tigate allegations of research impropriety, lack of compliance with rules for protection (CHAMPVA), transferred from current sec- Current Law of research participants and scientific mis- tion 1713 to the new section 1781. A new pro- Public Law 106–117 requires the VA to es- conduct. The ORCA chief officer reports to vision would specify that a dependent or sur- tablish a Veterans Health Administration- the Under Secretary for Health. vivor receiving such VA-sponsored care wide policy regarding chiropractic care. Vet- would be eligible for bereavement and other erans Health Administration Directive 2000– MAJOR MEDICAL FACILITY CONSTRUCTION counseling and training and mental health 014, dated May 5, 2000, established such a pol- Current Law services otherwise available to family mem- icy. None. bers under the subchapter. House Bill Senate Bill The existing authority to provide hospital care or medical services as a humanitarian Fiscal year 2002 appropriations are avail- Title II would establish a national VA service in emergency cases would be moved able for an emergency repair project at the chiropractic services program, implemented to this new subchapter from its current loca- VA Medical Center, Miami, Florida. Section over a 5-year period; authorize VA to employ tion in section 1711(b). chiropractors as federal employees and ob- 205 of the Senate Bill authorizes $28.3 million Section 105 would also make various tech- tain chiropractic services through contracts; for this project, in accordance with section nical changes to accommodate the sub- establish an advisory committee on chiro- 8104 of title 38, United States Code. chapter reorganization. These changes would practic care; authorize chiropractors to func- House Bill recodify the existing provisions, and consoli- tion as VA primary care providers; authorize The House bill has no comparable provi- date and clarify the existing statutory au- the appointment of a director of chiropractic sion. thority to provide care to non-veterans. service reporting to the Secretary with the Senate Bill same authority as other service directors in Compromise Agreement the VA health care system; and provide for Section 206 follows the Senate bill. The Senate bill has no comparable provi- sions. training and materials relating to chiro- SENSE OF CONGRESS ON SPECIAL TELEPHONE practic services to Department health care SERVICES FOR VETERANS Compromise Agreement providers. Current Law Section 208 follows the House bill. Senate Bill None. EXTENSION OF EXPIRING COLLECTIONS AUTHORITIES Section 204 of the Senate Bill would estab- House Bill lish a VA chiropractic services program in Current Law Section 104 would require the Secretary to VA health care facilities and clinics in not Section 1710(f)(2)(B) of title 38, United assess special telephone services for veterans less than 25 states. The chiropractic care and States Code, authorizes VA until September (such as help lines and ‘‘hotlines’’) provided services would be for neuro-musculoskeletal 30, 2002, to collect nursing home, hospital, by the Department. The assessment would conditions, including subluxation complex. and outpatient co-payments from certain include the geographic coverage, avail- The VA would carry out the program veterans. Section 1729(a)(2)(E) of title 38, ability, utilization, effectiveness, manage- through personal service contracts and ap- United States Code, authorizes VA until Oc- ment, coordination, staffing, and cost of pointments of licensed chiropractors. Train- tober 1, 2002, to collect third-party payments those services. It would require the assess- ing and materials would be provided to VA for the treatment of the nonservice-con- ment to include a survey of veterans to health care providers for the purpose of fa- nected disabilities of veterans with service- measure satisfaction with current special miliarizing them with the benefits of chiro- connected disabilities. telephone services, as well as the demand for practic care and services. House Bill additional services. The Secretary would be Compromise Agreement required to submit a report to Congress on Section 106 would extend until 2007 VA’s Section 204 would follow the Senate bill the assessment within 1 year of enactment. authority to collect means test co-payments and to collect third-party payments. but would replace its reference to 25 states Senate Bill with a reference to VA’s 22 Veterans Inte- Senate Bill The Senate bill contains no comparable grated Service Networks (referred to as ‘‘ge- The Senate bill contains no comparable provision. ographic service areas’’ in the section). Also, provision. Compromise Agreement the agreement would include an advisory Compromise Agreement committee to assist the Secretary of Vet- Section 207 contains a Sense of the Con- Section 209 follows the House bill. erans Affairs in implementation of the chiro- gress Resolution on the Department’s need PERSONAL EMERGENCY RESPONSE SYSTEM FOR practic program. Under the agreement, the to assess and report on special telephone VETERANS WITH SERVICE-CONNECTED DISABIL- advisory committee would expire 3 years services for veterans. ITIES from enactment. RECODIFICATION OF BEREAVEMENT COUNSELING Current Law FUNDS FOR FIELD OFFICES OF THE OFFICE OF AUTHORITY AND CERTAIN OTHER HEALTH-RE- None. RESEARCH COMPLIANCE AND ASSURANCE (ORCA) LATED AUTHORITIES House Bill Current Law Current Law Section 107 of the House bill would require The Under Secretary for Health has pro- Chapter 17 of title 38, United States Code, the Secretary to carry out an evaluation and vided funding for ORCA field offices from contains various legal authorities under study of the feasibility and desirability of funds appropriated for Medical and Pros- which VA provides services to non-veterans. providing a specialized personal emergency thetic Research. These provisions, that authorize bereave- response system for veterans with service- Senate Bill ment and mental health counseling, care for connected disabilities. It would require a re- research subjects, care for dependents and Since field offices of ORCA directly protect port to Congress on the results of this eval- survivors of permanently and totally dis- patient safety, section 205 would authorize uation. abled veterans, and emergency humanitarian VA to fund them from the Medical Care ap- care, are intermingled with authorities for Senate Bill propriation. the care of veterans in various sections of The Senate bill contains no comparable House Bill chapter 17. provision. The House bill has no comparable provi- House Bill Compromise Agreement sion. Section 210 follows the House bill. Section 105 of the House bill would in a Compromise Agreement new subchapter consolidate and reorganize HEALTH CARE FOR PERSIAN GULF WAR Section 205 follows the Senate bill. without substantive change all of the legal VETERANS The Committees are concerned about the authorities under which VA provides services Current Law need for ORCA to maintain independence to non-veterans. It would reorganize section Section 1710 of title 38, United States Code, from the Office of Research and Develop- 1701 of title 38, United States Code, by trans- defines eligible veterans for whom the Sec- ment. The Committees have concluded, on ferring one provision (pertaining to sensori- retary is required to furnish hospital, nurs- the strength of hearings and reports on po- neural aids) to section 1707. ing home, and domiciliary care. Section

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00069 Fmt 0666 Sfmt 0634 E:\CR\FM\A20DE8.140 pfrm07 PsN: E20PT1 E2408 CONGRESSIONAL RECORD — Extensions of Remarks December 20, 2001 1710(e)(1)(C) of title 38 authorizes the Sec- its duties under the law. Also, I’d like to As I see it, the emergency steel loan guar- retary to provide health care services on a stress to everyone here the devastating ef- antee is the next step in helping to save LTV priority basis to veterans who served in the fect a permanent shutdown of LTV Steel Steel and our jobs and health care benefits. Southwest Asia Theater of operations during would have not only upon our steelworkers, The Steelworkers union has actually already the Persian Gulf War. Section 1710(e)(3)(B) of but also all of our retirees. It seems the only taken the first step in cooperation with the title 38 specifies that this eligibility expires growth industry in this country is health company’s unsecured creditors by developing on December 31, 2001. care. Prices for health care, including pre- a plan which includes work rule concessions Senate Bill scription drugs, far exceed any increase in by the steelworkers. Our members work hard every day. Many, The Senate Bill would amend section 1710 wages or benefits. If LTV permanently shuts like myself, have devoted years to making of title 38, United States Code, to extend down, not only will our retirees get reduced pensions from the PBGC and become a bur- LTV Steel succeed. Unfortunately, over the health care eligibility for veterans who den on the government, they will also be past five years, we have witnessed a literal served in Southwest Asia during the Gulf forced to bear this great additional cost on flood of foreign-made steel coming into the War, to December 31, 2011. their fixed incomes. U.S. market. This has depressed steel prices House Bill Growing up in this country, I was always here in the U.S. and is largely responsible for The House Bill contains no comparable taught to respect and care for my elders. It the circumstances which have forced LTV provision. would seem that some in our government Steel and 29 other U.S. steel companies into Compromise Agreement have forgotten this basic lesson. To allow bankruptcy. Section 211 follows the Senate bill but ex- those that invested so much of their blood, Congress created the Emergency Steel tends the health care eligibility to December sweat, and tears in an industry and a com- Loan Guarantee Board for precisely this sit- 31, 2002. pany to make this country strong to be uation; to help a domestic American com- thrown to the wolves would make them vic- pany that has been ravaged by cheap foreign f tims to the policies of their own government. steel to get back on its feet and survive. We With the current economic situation in this have seen in the news where the IMF and the STEELWORKERS’ APPEAL country, the devastating effects a permanent World Bank have allowed loans to foreign shutdown of LTV would have would only countries, including China, so that they can HON. DENNIS J. KUCINICH make it harder on America to pull out of the build up their own steel industries. Our own OF OHIO current recession. It will only create a bigger government has backed these loans. Yet IN THE HOUSE OF REPRESENTATIVES burden on city, state, and Federal govern- when we are pleading for our survival, we are ments. Worse than that is the loss of self-re- kept waiting and wondering whether we will Thursday, December 20, 2001 spect of the people who helped to make this have jobs. Mr. KUCINICH. Mr. Speaker, on December a great nation. I urge you not to wait any longer. Please contact the Emergency Loan Guarantee 12th, hundreds of Americans came to the My brothers and sisters and I are not ask- ing for riches. We are not sports stars or Board and ask them to approve the $250 mil- Capitol to implore their elected representatives movie stars. We are only asking to have the lion loan guarantee for LTV Steel. We need to help them. They are steelworkers, living in right to earn decent wages and benefits this guarantee to save our jobs and to save Ohio, Indiana, Illinois, Minnesota and Pennsyl- through the sweat of our labor so that we our families. vania. They work for LTV Steel Company, can buy a house, educate our children, and Thank you. which is in bankruptcy after enduring years of some day retire in dignity. The people here unfair competition from foreign imports. in Congress and in this administration have STATEMENT OF RICHARD DOWDELL, LTV The steelworkers testified before a hearing the ability to make that happen. STEELWORKER, UNITED STEELWORKERS OF Do not let the American dream die from AMERICA, LOCAL 1011, INDIANA HARBOR, IN- of the Congressional Steel Caucus. They neglect. I urge you in the strongest possible spoke poignantly and eloquently. They ex- DIANA terms to get the Emergency Steel Loan Thank you for the opportunity to appear pressed the key principles upon which our Re- Board to approve the $250 million loan guar- public was founded: liberty and justice for all. before you today to speak about the crisis antee to LTV Steel. facing myself and over 8,000 other employees Thank you. They have made the reasonable demand that of LTV Steel. we, their elected representatives, uphold those My name is Richard Dowdell. I serve as a principles in a global economy. STATEMENT OF BOB RANKIN, LTV STEEL- Unit Co-chairperson of the Chicago coke I am entering into the RECORD the testimony WORKER, UNITED STEELWORKERS OF AMER- plant. I began working at LTV Steel in from that hearing, so that all of my colleagues ICA, LOCAL 188, CLEVELAND, OHIO March, 1964 as a stove tender. I joined the may hear their appeal. Thank you for the privilege of appearing mechanical apprenticeship program and be- today to speak about the future of LTV Steel came a millwright in 1966. I am married and STATEMENT OF TONY PANZA, LTV STEEL- and the future of steelworkers like myself have two children. WORKER, UNITED STEELWORKERS OF AMER- and thousands of others. LTV has arbitrarily decided it is better for ICA, LOCAL 1157, CLEVELAND, OHIO My name is Bob Rankin. I worked as a pro- the employees working in its steel mills to Hello. My name is Tony Panza. I’m 36 duction worker at LTV’s mill in Cleveland, no longer have a job. They actually told the years old and have been employed by LTV Ohio. I have worked for LTV since 1978. My bankruptcy court judge that it is better for Steel Company in Cleveland, Ohio since 1988. job was to inspect steel products being man- us to have finality in this matter and to get During my first ten years, I worked in the ufactured on the line. on with our lives. But I have invested 37 power house of the mill. I later joined the ap- I have a 10-year old son born with a brain years of my life working for LTV Steel and prenticeship program and became a mill- injury. When he was two years old, the doc- I am not willing to go without fighting to wright in 1998. I had a good job and expected tors told us that he probably would not be save my company and my job. The Steel- to work in this job until I retired some day. able to speak or communicate with other workers union and the unsecured creditors I am a third generation steelworker. I am people. We found a hospital in Philadelphia have put forward a modified labor agreement married and my wife and I have two daugh- called the Institute for Child Development. that can and should be accepted. The sac- ters, Isabel, age four, and Rosalie, age 10. He was put in 12 to 14 hours a day of therapy. rifices being offered by our steelworkers will In late 2000 when LTV first declared bank- Our insurance paid for 85 to 90 percent of the give us at least a fighting chance to save ruptcy after suffering from the surge of for- costs. The cost for one week of care is ap- LTV Steel if they are approved by the bank- eign dumped steel, I joined the SOS (Save proximately $18,000. Our son was in this pro- ruptcy court. Our Steel) Committee to try to get Congress gram for three years and he has achieved re- The termination of our contract would to stop illegally-dumped foreign steel before markable success during that time. He is mean that thousands of steelworkers and re- it destroyed any more American steel com- now walking and talking and going to a reg- tirees could lose their health insurance. My panies. Unfortunately, we have been unsuc- ular school. Without our insurance, this wife has an existing medical condition where cessful up to this point. Some 29 American would never have happened. she has a microvalve in her heart which re- steel companies, including LTV, have been He still receives physical therapy today quires expensive medication. If we were to forced into bankruptcy. Several of those which helps him to have a better quality of lose our health insurance, I do not know how companies have been forced to shut down life. If it were not for my insurance, the cost we would be able to afford her medication. completely. One of the reasons is the snail’s of his care in a public hospital setting would There are some 69,000 LTV retirees, many of pace of the process in getting a loan from the have been enormously more expensive and whom are in similar circumstances and are Emergency Steel Loan Guarantee Board. It probably would not have improved his med- relying on the company providing their is my understanding that this program was ical condition. health insurance. if we were to lose our established for circumstances just like what My wife and I are not unique in wanting health insurance, there may not be anywhere we face at LTV. The system seems to be the best life possible and the best medical for us to go, especially for those like my wife working against us. By the time we can get care for our child. There are many other who have serious, pre-existing medical con- help, it may be too late. workers at LTV who face similar challenges ditions that require expensive medication. I urge the Steel Caucus to do whatever you in providing health care for their loved ones, LTV’s asset protection plan does not pro- can in order to see that this program fulfills whether it is a spouse or children. tect two of their most important assets: the

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00070 Fmt 0666 Sfmt 0634 E:\CR\FM\A20DE8.145 pfrm07 PsN: E20PT1 December 20, 2001 CONGRESSIONAL RECORD — Extensions of Remarks E2409 company’s two coke plants, one in Chicago Ohio and in America in the form of taxes to assist U.S. steel makers in gaining resources and the other in Warren, Ohio. These facili- pay for unemployment insurance, food that would be used for reinvestment, retool- ties may be worth $300 million. Instead, the stamps, health care, job training and place- ing and restructuring. company has chosen to permanently shut ment, and other services. These additional down these facilities. These facilities, unlike costs to our city and to state government STATEMENT OF BRUCE SIMON, COUNSEL TO the hot mills, are not subject to the court’s will come at the very moment when we are UNITED STEELWORKERS OF AMERICA recent December 5th order providing for hot in a recession and state and local tax reve- Good afternoon. idle shutdown. The coke facilities are sub- nues are plummeting. My name is Bruce Simon. I am a partner in ject to being permanently closed now unless The environmental cleanup which would be the firm of Cohen, Weiss and Simon, and we the judge modifies his order. necessary if this plant closes down would are Counsel to the United Steelworkers of The steelworkers and retirees of LTV Steel also create a tremendous burden for the City ask you to do all that you can to ensure that America in the LTV Steel matter. of Cleveland. The vendors who serve LTV I’d like to start with a brief review of one the Emergency Steel Loan Board moves Steel and the company’s customers would of the key findings of the Emergency Steel quickly to approve the $250 million loan to also be negatively impacted by the loss of Loan Guaranty Act of 1999; an overview of save LTV Steel. Please act now before it is jobs in a shutdown of LTV Steel. employment in the steel industry; an update too late. LTV, like all other American steel manu- Thank you. on LTV itself, including the status of the facturers, has become a victim of unfair and bankruptcy proceeding, and then deal with unbalanced trade policies which have per- the loan application now pending before the STATEMENT OF COUNCILMAN ROOSEVELT mitted a flood of foreign steel, much of it Emergency Steel Loan Guaranty Board. I COATS, CITY OF CLEVELAND, OHIO ‘‘dumped’’ illegally, into the U.S. market. will conclude with a suggestion about what Thank you Mr. Chairman and members of This flood of foreign steel has depressed the Steel Caucus, and the United States Con- the U.S. House of Representatives Steel Cau- prices so severely that no one can make gress can do about it. cus for receiving my testimony today con- money in this industry in America. With 29 First, a little congressional history: cerning the future of LTV Steel. My name is companies, including LTV Steel, in bank- 1. [Sec. 101(b)(6)] of the Emergency Steel Roosevelt Coats and I am a member of the ruptcy we know that time is running out. We Loan Guaranty Act of 1999, provides: ‘‘Con- City Council from Ward 10 in the city of do not want to see LTV join the ranks of gress finds that (6) a strong steel industry is Cleveland, Ohio. I have served on the City those steelmakers who have shut down per- necessary to the adequate defense prepared- Council since 1987. Prior to that time, I was manently. ness of the United States in order to have a Union Representative for the United Steel- On behalf of the workers and retirees of sufficient steel available to build the ships, workers of America. LTV Steel Company, I implore you in the tanks, planes and armaments necessary for I share the concerns of Congressman Den- Congress and the Administration to do all the national defense’’. And that was before nis Kucinich, Congresswoman Stephanie that you can to save LTV Steel. September 11, 2001. Tubbs-Jones, the people of Cleveland, and Thank you. 2. Congress’s findings in the 1999 law also many in this room about the future of LTV recited the loss of 10,000 steelworkers jobs in Steel Company. 1998, and 3 medium-sized steel bankruptcies PROPOSED RESOLUTION NO. 2002–24 The research done by the City of Cleveland (ACME, LaClede, Geneva). PRESERVATION OF U.S. STEEL INDUSTRY about the possible loss of LTV Steel is dev- Since then, literally tens of thousands astating to our city and to the lives of tens Whereas, the United States steel industry more steelworkers have lost their jobs. Just of thousands of people who live in our city. is in the midst of a serious crisis that im- last Friday, the Bureau of Labor Statistics The loss of LTV Steel would mean the loss of pacts not only steel producing states, but reported that in the last 12 months alone, 3200 steelworkers’ jobs in the City of Cleve- the security and economic well-being of the 17,600 Steelworkers lost their jobs—not in- land. It would also result in the loss of an- entire nation; and cluding the 6,000 so far at LTV. other 7500 steelworkers’ jobs in the states of Whereas, since the United States is experi- And, of course, we now have 28 steel com- Ohio, Indiana, Illinois, Michigan, and Min- encing a recession and, as a result of the panies in bankruptcy, including two of the nesota. 40,000 additional jobs would be af- tragedy of September 11, 2001, is embroiled in very largest, LTV and Bethlehem. fected nationally, and 69,000 families nation- international military action, the loss of the SNAPSHOT OF LTV capability to produce steel domestically will wide would have pensions and health care 1. 6,800 employees, + 2000 at LTV Tubular pose a threat to national security and the benefits either reduced and/or eliminated. 2. 70,00 Retirees, surviving spouses and de- The prospect of losing your health insur- nation’s ability to retain a manufacturing pendents on Retiree Health ance, especially if you are an older person base; and 3. Legacy costs $1.5B who is retired, living on a fixed income, and Whereas, America’s crumbling infrastruc- 4. Pension underfunding—$1/2 B ture needs to be rebuilt and domestically facing mounting costs for health care and LEGAL STATUS prescription drugs is nothing short of fright- produced steel could be used to assist in the ening. Where can an 80-year old retiree with rebuilding of our cities and towns; and Last week, on December 5, the Bankruptcy preexisting medical conditions go to get Whereas, suppliers of raw materials from Court in Youngstown, Ohio issued an order health insurance if they lose their insur- areas such as Minnesota, Michigan, West which carried out an agreement made in ance? How can current workers afford health Virginia and Pennsylvania, and consumers Chambers—between the Company, its se- insurance for their children, their spouse, such as automobile manufacturers in Michi- cured lenders, its noteholders, the Creditors and themselves if they lose their insurance? gan and aerospace manufacturers in Wash- Committee and the Steelworkers. I should These are the key questions which trouble ington would be severely impacted if the do- note that Members Kucinich and Latourette thousands of my constituents today. mestic steel industry is permitted to erode; were very effective witnesses on behalf of Needless to say, the loss of 3200 jobs would and Steelworkers. The Court’s Order, in effect, have a tremendous impact upon the City of Whereas, by way of example, 3,200 steel in- put LTV on a limited life support system, on Cleveland, mainly because of the city losing dustry-related jobs would be lost in Cleve- a respirator, in the intensive care unit. The the tax revenue from these family-sup- land, 7,500 jobs would be eliminated in Ohio, Order provides: portive jobs. LTV also pays millions of dol- Illinois and Indiana, 40,000 additional jobs (a) the Company’s integrated steel units lars a year in property taxes to the City of would be affected nationally and 50,000 fami- are to be maintained in a form of hot idle Cleveland. This is revenue to our city which lies nation-wide would have pension and until the President issues Section 201 rem- is vital in paying for police, fire, education, health benefits reduced; and edies by March, 2002 (b) the coke plants in Warren, Ohio and public health, and other vital functions of Whereas, foreign steel imports have spiked Chicago are to be held alive for 3 weeks our local government. Such a significant loss to 40 percent of the U.S. market, up from 20 (c) the Company is to support and cooper- of local tax revenue would necessarily lead percent just two years ago, by selling steel ate in continuing efforts to secure the Byrd to either cutbacks in city services, layoffs of at prices that are significantly below the loan, and to report back to the Court on De- public personnel, or increases in taxes to cost of production; and cember 19—next Wednesday maintain services, or perhaps a combination Whereas, the U.S. Trade Commission has Where do we stand with the Emergency of all three options. It would also lead to an determined that illegal dumping of foreign- Loan Board? erosion of our city’s infrastructure as we made steel has occurred and the administra- Let me start with a conclusion, and work know it today. There is no doubt that the tion is currently considering an appropriate backwards from there. loss of LTV will lead to a diminished quality remedy for this practice; The power to save LTV, and the power to of life for people in Cleveland. We saw what Now, therefore, be it resolved, That the bury LTV rests in one place—the Emergency happened twenty years ago when the steel National League of Cities urges the Presi- Steel Loan Guaranty Board. industry was in crisis, how entire commu- dent to consider action under international Now, the question for the day is—what can nities in Pennsylvania, Ohio, Indiana, Min- trade law to determine whether there has the Steel Caucus do, what can the Congress nesota, and elsewhere were devastated when been dumping of foreign-made steel in the of the United States do, to move the Loan steel mills shut down and workers were sud- U.S. Board to exercise its power to let LTV live— denly displaced. Be it further resolved, That the National and not exercise its power to pull the plug? The cost of allowing LTV Steel to go under League of Cities urges Congress and the Ad- There has been a considerable amount of will ultimately fall upon every taxpayer in ministration to consider federal programs to finger-pointing and blame assessment over

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00071 Fmt 0666 Sfmt 0634 E:\CR\FM\A20DE8.148 pfrm07 PsN: E20PT1 E2410 CONGRESSIONAL RECORD — Extensions of Remarks December 20, 2001 the past few months—and there are many, component who dies in the line of duty while gard; instead, the Agency is only to provide many candidates for the role of accessory-be- on active or inactive duty training. To me as information once to community water sys- fore-the-fact. But with all due respect, the a layperson, active duty for training and inac- tems (by March 1, 2002) regarding what kinds United Steelworkers of America believes this of terrorist attacks are probable threats. not the time to pin the tail on the donkey tive duty training is a distinction without a dif- EPA is to coordinate its efforts with other for the closing of LTV. ference. agencies and departments of government This is the time, perhaps the last time, Either way, a life was given to protect the who have expertise in this area, to compile that something can be done to avoid the cat- freedoms of all the rest of us. information readily available or already de- astrophic consequences of the closing of LTV Earlier this year, a military plane crashed in veloped, and to promptly distribute this in- that you have just heard about from the Georgia. On board were Guardsmen returning formation. The statute does not provide a steelworker members of this panel. home from active duty for training. All on continuing duty for EPA in this area past the date specified in the legislation. I’m going to spend a few minutes to sup- board died. Yet none was eligible for burial at port my conclusion—that the focus now is on In this regard, vulnerability assessments the Loan Board—and then propose a course Arlington because they were on training status are defined in statute only to the extent that of action—immediate action—for the Steel as opposed to mobilized status. they include a review of certain specified Caucus to take. Their military classification at the time of items. These items are those which make up Here’s where we are today. death made no difference to the widows and the physical structure of a public water sys- There is pending on the desk of the Emer- children left without a husband and father. The tem (as defined in section 1401 of the Safe gency Steel Loan Guaranty Board an appli- fact of the matter is that these soldiers died in Drinking Water Act (SDWA)), electronic, computer or other automated systems, phys- cation by the National City Bank, and Key the line of duty. Bank, on behalf of LTV, for a $250 million ical barriers, the use, storage, or handling of loan guaranty. Madam Speaker, this bill is yet another tes- various chemicals and the operation and The application is supported by an analysis tament to Chairman SMITH’s commitment to maintenance of a drinking water system. by the big 5 Accounting Firm of Deloitte our servicemembers, veterans, and their sur- Title IV recognizes that there are many dif- Touche, for the Official Creditors Committee vivors. ferent types and sizes of community water of LTV, appointed by the Bankruptcy Court, In the wake of the September 11 attacks on systems (CWS) and gives CWS wide discre- which states that the second, historic, labor Americans, I thank Chairman SMITH for taking tion to devise and conduct a vulnerability agreement negotiated between LTV’s credi- the initiative to introduce and bring this bill to assessment. EPA is not given any rule- making or other authority to define further tors and the Steelworkers provides the fol- the floor before we adjourn for the year. lowing—and I quote: (1) ‘‘the Company is what is or is not a vulnerability assessment able to fully repay the Byrd Loan by the end I urge my colleagues to support H.R. 3423. meeting the requirements of section 1433. of 2005,’’ (2) ‘‘the Company is projected to f Nor does Title IV require that a community maintain positive liquidity over the five water system utilize any particular vulner- year period with a low point of $35M in 2002’’. PUBLIC HEALTH SECURITY AND ability assessment tool, or conduct any spe- Thus, the Loan Board has been told by one BIOTERRORISM RESPONSE ACT cific type of analysis. Community water sys- of the most highly respected Accounting OF 2001 tems are not required to determine the con- firms, one of the ‘‘big 5’’, that its primary sequences of intentional acts or terrorist concerns have been met—that, if the $250M acts, analyze their use of specific chemicals, loan is made, it will be paid back as the law HON. PAUL E. GILLMOR including chlorine, as opposed to other requires; and the Company will have the li- OF OHIO chemicals, or to characterize the risk of any quidity, the cash on hand, to carry on its IN THE HOUSE OF REPRESENTATIVES offsite impacts. Further, the term ‘‘physical business. barriers’’ does not necessarily include ‘‘buff- Until now, there has been buck passing. Thursday, December 20, 2001 er zones’’ or any other area around physical From Management of LTV to its banks; from Mr. GILLMOR. Mr. Speaker, as Chairman of structures. the Byrd Bill banks to the DIP lenders; then the Environment and Hazardous Materials Title IV does not contain any requirement to the Union. And back and forth. Now, buck that the EPA or any other governmental Subcommittee of the House Energy and Com- body receive for review vulnerability assess- passing is over, and there is one—and only merce Committee, which has jurisdiction over one, focus. The Loan Board has the power to ments conducted by water systems. Nor does keep LTV alive, so that efforts already under the Safe Drinking Water Act, I am taking this Title IV contain any requirement that com- way to help the entire industry (by address- opportunity to elaborate on and clarify the pro- munity water systems provide such informa- ing the illegal dumping, by addressing legacy visions of the legislative text of Title IV of H.R. tion to EPA or to any other person or gov- costs) have a chance to click in. If the Board 3448, the Public Health Security and Bioter- ernmental entity. It only requires that com- fails to act, it will have pulled the plug be- rorism Response Act of 2001. Because this munity water systems certify that they have fore the doctor has had a chance to operate. completed an assessment. Community water legislation was considered under suspension systems are to coordinate with local emer- Finally, what must be done? The Steel of the Rules and without the filing of a report Caucus, and the other members of Congress, gency planning committees (LEPCs) in the must convey to the members of the Emer- by the House Energy and Commerce Com- preparation or revision of emergency re- gency Steel Loan Guaranty Board, that the mittee, I want to provide and more detailed ex- sponse plans for the purpose of avoiding du- will and intent of Congress in the Emergency planation of Title IV for the RECORD. plication of effort and taking advantage of previous information developed by the Steel Loan Guaranty Act of 1999 was that in- SECTION 401: AMENDMENT TO SAFE DRINKING LEPCs for first responders and local govern- stances like LTV are precisely the instances WATER ACT where guaranty should be issued. The Board ment response. There is no requirement that Title IV of the Public Health Security and must be told, forcefully, that the time to act community water systems disclose any of Bioterrorism Response Act of 2001 requires is now, and that the Guaranty should be the information developed by the vulner- community water systems serving over 3,300 issued forthwith. ability assessments to the LEPCs. individuals to conduct vulnerability assess- Vulnerability assessments could contain f ments and to prepare or revise emergency re- very sensitive information about a drinking sponse plans which incorporate the results of water system which would be of assistance ELIGIBILITY OF CERTAIN PER- the vulnerability assessment. The legisla- to a terrorist or an individual contemplating SONS FOR BURIAL IN ARLING- tion, however, also recognizes that many an attack. Therefore, Title IV was explicitly TON NATIONAL CEMETERY community water systems have conducted or and intentionally drafted to avoid triggering will be in the process of conducting vulner- any requirement under the Freedom of Infor- SPEECH OF ability assessments at the time of enact- mation Act (FOIA) (Section 552 of Title 5, ment. Title IV is thus explicitly drafted not United States Code) to disclose any informa- HON. MICHAEL K. SIMPSON to create a regulatory program which could tion developed in connection with a vulner- OF IDAHO slow down ongoing efforts or to require sys- ability assessment. The President should IN THE HOUSE OF REPRESENTATIVES tems that have completed vulnerability as- carefully consider whether assessments and sessments to undertake another such assess- related materials should be exempted from Wednesday, December 19, 2001 ment. The title only requires that systems the FOIA by executive order. Mr. SIMPSON. Madam Speaker, I rise today certify that an assessment has been com- The legislation authorizes EPA to provide in support of H.R. 3423, which extends burial pleted by a specific date, not that the assess- financial assistance to CWS for several speci- eligibility at Arlington National Cemetery to ment was initiated and/or completed before fied purposes. EPA may provide assistance or after the date of enactment. for vulnerability assessments, for developing those reservists who retire before age 60—the Title IV does not create a regulatory role or revising emergency response plans and for age at which they become eligible for retired for the Environmental Protection Agency expenses and contracts designed to address pay. (EPA) in defining what is or is not an ‘‘ac- basic security enhancements of critical im- H.R. 3423 also makes eligible for in-ground ceptable’’ vulnerability assessment. EPA is portance and significant threats to public burial at Arlington a member of a reserve provided no regulatory authority in this re- health. Title IV does not define either ‘‘basic

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00072 Fmt 0666 Sfmt 0634 E:\CR\FM\A20DE8.152 pfrm07 PsN: E20PT1 December 20, 2001 CONGRESSIONAL RECORD — Extensions of Remarks E2411 security enhancements of critical impor- Security and Bioterrorism Response Act of dance of love and philanthropy and support tance’’ or ‘‘significant threats to public 2001, H.R. 3448. As you know, this bill con- causes for young people and the elderly. health.’’ However, existing SDWA programs tains a provision related to matters in the Bishop Madison’s ministry promotes higher which provide assistance to water systems jurisdiction of the Committee on Transpor- have not provided assistance for continuing tation and Infrasturcture. Specifically, Sec- education, exercises business acumen, im- expenses such as operations and mainte- tion 135 of the bill amends the Stafford Act proves the spiritual fiber of society and main- nance or personnel expenses. This legislation (42 U.S.C. §§ 5121, et seq.), which is under the tains the United House of Prayer as a beacon does not change this long-established public jurisdiction of the Committee on Transpor- of light for those who need inspiration and a policy. tation and Infrastructure. safe haven from the harsh realities of life. Finally, Title IV clarifies that EPA has In the interest of expediting consideration It is my pleasure to stand before the House discretion to act under Part D, Emergency of the bill, the Committee will not seek a re- Powers, of the Safe Drinking Water Act to pay tribute to Bishop S.C. Madison as he ferral of this legislation and will support marks 61 years in the ministry and 10 years (SDWA) when the Agency has received infor- your request to schedule floor action on the mation about a specific threatened terrorist bill. This action should not, however, be con- of service as the outstanding role model and attack or when the Agency has received in- strued as waiving the Committee’s jurisdic- leader of the United House of Prayer for all formation concerning a potential terrorist tion over future legislation of a similar na- people. attack (but not necessarily a specific, identi- ture. f fied threat) at a drinking water facility. In Thank you for your cooperation on this exercising this discretion, the EPA should matter. DEBT-FOR-NATURE AGENDA OF only rely upon substantial, credible informa- Sincerely, BANK REGULATORS AT THE tion. EPA should not interpret ‘‘potential DON YOUNG, FDIC AND OTS terrorist attack’’ to mean that there is Chairman. merely some possibility or statistical prob- ability of a terrorist attack. Neither should f HON. JOHN T. DOOLITTLE EPA interpret a general warning, general an- OF CALIFORNIA nouncement or general condition to be suffi- TRIBUTE TO BISHOP SAMUEL C. cient information of a threatened or poten- MADISON ON THE 75TH ANNIVER- IN THE HOUSE OF REPRESENTATIVES tial terrorist attack. Specific, credible infor- SARY OF THE UNITED HOUSE OF Thursday, December 20, 2001 mation is required, and all other elements of PRAYER FOR ALL PEOPLE’S Mr. DOOLITTLE. Mr. Speaker, in the 106th section 1431 must be met, including the ex- CONVOCATION, HIS 61ST ANNI- Congress, I chaired a Task Force formed by istence of an imminent and substantial VERSARY AS MINISTER, AND endangerment to the health of persons, that then-Chairman DON YOUNG to examine wheth- 10TH ANNIVERSARY AS BISHOP appropriate State and local authorities have er bank regulators at the FDIC and OTS used AND CHURCH LEADER not acted to protect the health of persons their powers to leverage privately owned red- served by the drinking water system, and wood trees, known as the Headwaters Forest that the EPA Administrator has consulted HON. MELVIN L. WATT in California, from an individual. with State and local authorities regarding OF NORTH CAROLINA the correctness of the information regarding The task force, which included Representa- IN THE HOUSE OF REPRESENTATIVES both the specific threat and the actions tives POMBO, THORNBERRY, BRADY, and which the State or local authorities have Thursday, December 20, 2001 RADANOVICH, undertook an 8 month review of taken. The authority granted to EPA in sec- Mr. WATT of North Carolina. Mr. Speaker, I the debt-for-redwoods matter. We held one tion 1431 is a limited, case-by-case, contin- rise today to honor an exemplary leader, terribly long hearing on the subject on Decem- gent emergency power. Bishop S.C. Madison, who is celebrating the ber 12, 2000. 75th anniversary of the United House of Pray- In the 107th Congress, Chairman HANSEN HOUSE OF REPRESENTATIVES, er for All People’s Convocation, his 61st anni- continued work on the subject and dedicated COMMITTEE ON ENERGY AND COMMERCE, versary as minister and his 10th anniversary staff to draft a staff report to summarize the Washington, DC, December 11, 2001. evidence of the FDIC and OTS redwoods Hon. DON YOUNG, as bishop of the United House of Prayer. Chairman, Committee on Transportation and Bishop Madison is an exceptional leader who debt-for-nature scheme and conclusions Infrastructure, Rayburn House Office has championed the causes of eliminating drawn from the oversight work. The report ex- Building, Washington, DC. poverty, inadequate and unaffordable housing, poses how banking regulators took on an un- DEAR MR. CHAIRMAN: The Committee on unemployment, illiteracy, economic disparities authorized, political agenda of leveraging red- Energy and Commerce has requested that and spiritual depravation. The magnitude, wood trees. the House take up the Public Health Secu- A member of the Task Force, Representa- rity and Bioterrorism Response Act of 2001, depth and substance of his contributions to tive POMBO, inserted the text of the staff report H.R. 3448. While the bill primarily contains improve human welfare and social reform provisions related to the matters in the ju- have brought him national acclaim. into the RECORD on June 14, 2001. Just as risdiction of the Committee on Energy and The leadership of Bishop C.M. Grace, important as the report itself, is the collection Commerce, I recognize that section 135, Bishop W. McCollough and Bishop S.C. Madi- of evidence and documents, appended to the which amends the Stafford Act (42 U.S.C. son has had a positive impact on the growth report. Those documents validate the accu- §§ 5121, et seq.), to require release of emer- of the United House of Prayer since its earliest racy of information presented in the report. gency plans, falls under the jurisdiction of existence in tents and storefront locations. Today, for the benefit of my colleagues, I have the Committee on Transportation and Infra- put those appendices into the RECORD. The structure. Currently, under the leadership of Bishop Allowing this bill to move forward in no Madison, there has been expansion to 135 Financial Services Committee should review way impairs your jurisdiction over that pro- congregations in 26 states. The church’s mas- this information as they deal with re-author- vision, and I would be pleased to place this sive, nationwide building program has resulted izing the FDIC and the OTS. These entities letter and any response you may have in the in construction of over 800 units of low and are clearly out of control, and I want to sum- Congressional Record when the bill is consid- moderate income housing. These housing marize why this is so. ered on the floor. In addition, if a conference complexes are located in New Haven, CT; Bank regulators at the FDIC and OTS have is necessary on this bill, I recognize your very specific statutory charges. They are to re- right to request that the Committee on Washington, DC; Norfolk, VA; Charlotte, NC; Transportation and Infrastructure be rep- Augusta, GA; Savannah, GA; and Los Ange- cover money from the owners of banks and resented on the conference with respect to les, CA. More than 100 units have been devel- thrifts when the institutions fail. This system the provision amending the Stafford Act. oped for senior citizens. keeps depositors whole through federally- Sincerely, The extraordinary success of Bishop Madi- backed insurance funds and collects money W.J. ‘‘BILLY’’ TAUZIN, son has led to numerous honors and awards from the banks’ owners if they failed to prop- Chairman. from national, state, and local organizations. erly manage the bank. I emphasize, bank reg- Academic institutions have presented honorary ulators are to recover money. U.S. HOUSE OF REPRESENTATIVES, degrees to him acknowledging his outstanding We found boxes of evidence that clearly COMMITTEE ON TRANSPORTATION AND achievements in helping to overcome deplor- showed that the bank regulators at the FDIC INFRASTRUCTURE, able conditions that plagued people and cities. and OTS deviated from their statutory charge Washington, DC, December 11, 2001. He has received Doctor of Humane Letters and actually concocted a scheme, in concert Hon. W.J. BILLY TAUZIN, Chairman, Committee on Energy and Commerce, from the Saturday College of Washington, DC with the Office of the Secretary of the Interior, Washington, DC. and Bowie State University of Bowie, MD. to obtain redwood trees from an owner of the DEAR MR. CHAIRMAN: Thank you for your Bishop Madison continues to demonstrate failed bank. The scheme was initiated, pro- recent letter regarding The Public Health outstanding leadership, dispense an abun- moted, and lobbied by radical EarthFirst!

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00073 Fmt 0666 Sfmt 9920 E:\CR\FM\A20DE8.155 pfrm07 PsN: E20PT1 E2412 CONGRESSIONAL RECORD — Extensions of Remarks December 20, 2001 ecoterrorists. It was embraced by FDIC law- The bank regulators were thick into red- hired by the FDIC to pursue a parallel ad- yers and facilitated by FDIC’s outside counsel, woods early in the process. They hired outside ministrative action against Mr. Hurwitz. The and it was sanctioned at the highest levels of counsel based on the supposed expertise to coordinated purpose of that strategy was to provide more leverage to get ‘‘the trees,’’ ac- the agency. handle a ‘‘unique’’ settlement involving the cording to the notes of the FDIC lawyers. The cornerstone of the scheme was to bring redwoods. Their outside counsel even acted The intense lobbying campaign by environ- legal and administrative actions that the regu- as a conduit between FDIC lawyers and the mental groups, including Earth First!, di- lators believed and knew would fail against environmental groups that lobbied for the red- rected at the FDIC, its outside counsel, the Mr. Charles Hurwitz, a 24-percent owner of a woods. OTS, the Administration, the Department of failed bank called United Savings of Texas. There is so much evidence detailed in the the Interior, the White House, and Members The bank regulators own written analysis of of Congress was why ordinary internal oper- staff report, which is why I am grateful that my ating procedures that would have closed out their claims said if the redwoods were not in- colleague, Representative RICHARD POMBO, the case against Mr. Hurwitz were not fol- volved, their lawyers would have ‘‘closed out’’ put the text of the report into the RECORD on lowed. the case. That means they would have Thursday, June 14, 2001. I want my col- The scheme to obtain redwoods overrode dropped the case, period. leagues to know that copies of the appendices the initial internal conclusion that the Instead, the bank regulators and their law- to the report are also public record. The Task claims against Mr. Hurwitz were losers for yers synthesized the redwood for bank claims Force made them public at the close of its the bank regulators and should not have scheme with politicians in Congress and with been bought under the written policy of the hearing on December 12, 2000. By my mo- agency. In fact, the FDIC met with the top outside environmental groups. They then met, tion, they were released: staff from the Office of the Secretary of the at a critical juncture, with the Office of the Mr. DOOLITTLE.... We’ve gone now for 5 Department of the Interior to discuss the Secretary of the Department of the Interior hours. We haven’t had a lunch break, and scheme just a few days prior to the stunning where the shocking and incredible realization we’re not going to have time to get into reversal of the internal staff recommenda- was noted by one participant in the meeting: some of the other details. But I think there’s tion not to sue Mr. Hurwitz. The FDIC notes if we drop the suit we ‘‘undercut everything.’’ enough revealed here that’s very troubling, from the meeting say, ‘‘If we drop suit, [it] Even before this startling evidence was un- and it needs further examination, and there- will undercut everything.’’ Of course ‘‘every- covered by the task force, a U.S. District Court fore, I make the following motion: I move thing’’ was the just-discussed scheme to le- that all the documents we utilized in today’s verage redwoods from Mr. Hurwitz. judge, the Honorable Lynn Hughes compared hearing be included in the hearing record The FDIC (and its agent, the OTS) were in- the tactics of the FDIC and OTS to that of the and that all of the documents produced by deed an integral part of the redwoods debt- mafia. the Department of the Interior be included for-nature scheme. They willingly injected Since the time when the report was placed as part of today’s hearing record; and I fur- themselves into the issue through actions in the RECORD by Mr. POMBO, the OTS admin- thermore move that any documents not in- such as meetings with politicians and debt- istrative proceeding has been decided by the cluded in the above categories that are nec- for-nature advocates, internal analysis of essary to document a staff report or analysis debt-for-nature urgings by environmental OTS administrative judge. In a 200 plus page advocates, and meetings with Department of opinion after reviewing 29,000 pages of tran- of the situation be released with such staff report. Hearing no objection.... So or- the Interior officials promoting a redwoods scripts and 2,400 pages of exhibits for over dered. debt-for-nature scheme. They did these seven years, the OTS judge ruled against the things well before their claims were author- agency on every single claim. Now that they are in the RECORD, my col- ized to be filed by the FDIC board, and it be- This ruling validates the inescapable conclu- leagues can see them in the context of the came clearer and clearer to the bank regu- sion that the bank regulators at the OTS and staff report. lators that there would be no ‘‘debt’’ and the FDIC still fail to acknowledge: their claims CONGRESS OF THE UNITED STATES, therefore no redwoods nature swap, if the claims were not brought or at least threat- totally lack of merit and were brought for the WASHINGTON, DC, JUNE 6, 2001. Hon. JAMES V. HANSEN, ened. political reason of obtaining ‘‘the trees’’—the Chairman, Committee on Resources, House of The evidence of the FDIC’s participation in redwoods—at no cost to the government. The Representatives. the debt-for-nature scheme is overwhelming staff report sets out the evidence supporting DEAR MR. CHAIRMAN: Transmitted with and contradicts the testimony offered by the this conclusion. this letter is the Staff Report entitled Red- witnesses at the December 12, 2000, hearing This is an atrocious abuse of governmental woods Debt-For-Nature Agenda of the Fed- of the Committee Task Force that reviewed power, and one that my colleagues and the eral Deposit Insurance Corporation and the the matter. That testimony was that bank- Office of Thrift Supervision to Acquire the ing claims or the threat of banking claims agency should understand. For that reason, I against Mr. Hurwitz involving USAT were have placed the evidence we collected—in its Headwaters Forest that you and Chairman Young requested. not brought as leverage in a broader plan to raw form—into the RECORD today. The report composed of evidence, testi- get the groves of redwoods from Mr. Hurwitz. I am doubly disturbed about what the bank mony, documents, records, and other mate- The weight of the documentation does not regulators did, because the Committee on Re- rial reviewed and analyzed by staff of the buttress that conclusion at all; it con- sources and the Congress have the legal au- Committee on Resources during the 106th tradicts it. Indeed, these actions of the bank regu- thority to decide what land is acquired and and 107th Congress. It follows the work of lators, in particular the FDIC and by exten- the Committee Task Force that reviewed the what the conditions of the acquisition should sion (then directly) the OTS, are an alarming matter through December 2000. be, not banking regulators. Bank regulators display of how ‘‘independent’’ government The analysis concludes that there was a clearly brought their claims for the environ- agencies are not necessarily independent, redwoods debt-for-nature scheme pursued by mentalists, for the Department of the Interior, have agendas, and do engage in politics when the bank regulators at the FDIC and the OTS and for the White House, not in furtherance of not controlled. What staff of such agencies beginning in at least February 1994. The often seem to forget is that the only author- banking laws. Their decision was political and scheme used almost meritless banking the disposition by the OTS judge again proves ity they have is that which Congress gives to claims against Mr. Charles Hurwitz (stem- them by law. What staff of these agencies ei- the point. These documents are even further ming from his minority ownership of a failed ther did not know or forgot is that there is validation. savings and loan) as leverage for the federal not authority in law for them to pursue the When we asked the bank regulators at our government to obtain a large grove of red- redwoods debt-for-nature scheme that they hearing if their banking claims had anything to wood trees owned by the Pacific Lumber pursued. These agencies seemed to realize do with redwoods, they said, ‘‘No.’’ The staff Company, a separate entity that Mr. Hurwitz this well after the pursuit began and their report documents just how the bank regulators owned and controlled. claims were polluted with the illegitimate It is clear that the scheme evolved as the were deeply involved in the redwoods agen- redwoods agenda. FDIC grew to understand the importance of The cost of this improper, illegal engage- da—and how they cooperated to get ‘‘the its (and the OTS’) potential claims as the le- ment—on a loser claim that would have been trees.’’ The report shows how they switched verage for the redwoods during an unprece- ‘‘closed out’’ if it were the normal situa- their recommendation after meeting with the dented meeting it held in early 1994 with a tion—is upwards of $40 million to Mr. Department of the Interior. Right before they Member of Congress. At that meeting, the Hurwitz. If the federal government can con- were to decide whether to pursue the claims, investigation of the claims against Mr. spire and get away with doing this to some- they obviously understood, ‘‘If we drop [our] Hurwitz and the redwoods debt-for-nature one with the capacity and resources to de- suit, [it] will undercut everything.’’ Those are scheme were discussed in detail, a highly in- fend himself, then imagine what the federal appropriate action that launched the bank government can do this to a person who does words are from the notes of a meeting be- regulators into a hot political issue. not have the means or capacity to defend tween the FDIC and the Department of the In- Immediately after the meeting, the goal of himself or herself. terior. Those words put the bank regulators obtaining the redwoods was shared by the The U.S. District Court Judge, The Honor- squarely inside the redwoods agenda. FDIC with the OTS, and the OTS was then able Lynn Hughes, who was assigned the

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00074 Fmt 0666 Sfmt 0634 E:\CR\FM\A20DE8.160 pfrm07 PsN: E20PT1 December 20, 2001 CONGRESSIONAL RECORD — Extensions of Remarks E2413 FDIC case, after learning of just a fraction of I move that all the documents we utilized committees of task forces by its definition of what the FDIC and OTS had done to strong- in today’s hearing be included in the hearing ‘‘subcommittee’’ to include ‘‘a panel . . ., arm Mr. Hurwitz, concluded that the agen- record and that all of the documents pro- task force, special subcommittee, or other cies used tools equivalent to the cosa nostra duced by the Department of the Interior be subunit of a standing committee. . .’’ (essentially a mafia tactic). Judge Hughes included as part of today’s hearing record; But even without such a rule, the ordinary was absolutely correct, and the documenta- and I furthermore move that any documents procedures by which chairmen commerce in- tion in this report provides additional basis not included in the above categories that are quiries—through inquiry letters, scheduling that validates Judge Hughes conclusion. No necessary to document a staff report or anal- of hearings, or staff studies and interviews— one—whether he or she is a millionaire in- ysis of the situation be released with such are proper without committee votes in ad- dustrialist or a laborer in a factory—should staff report.’’ vance or minority party participation in be subject to the unchecked tools of an out On June 6, 2001, a staff report on the Task their formulation or conduct. In furtherance of control ‘‘independent’’ agency like the Force’s inquiry was transmitted to the cur- of the responsibility to engage in continuous FDIC or the OTS, not in our republic. rent chairman of the Resource Committee, oversight under Rule X.2(b)(1), it has been The report makes the following conclusion: Mr. James V. Hansen, and to members of the traditionally proper for the chairman of ‘‘The Directors of the FDIC and OTS should Task Force. Mr. Richard W. Pombo, a mem- committees and subcommittees to initiate take corrective action and withdraw the au- ber of the Task Force, requested and re- preliminary reviews and studies, i.e., inquir- thorization for the FDIC lawsuit and OTS ceived permission of Chairman Hansen to ies which in a general sense may be termed administrative action against Mr. Hurwitz publish the staff report in the CONGRES- ‘‘preliminary investigations’’ to be under- for matters involving USAT. The integrity of SIONAL RECORD, which occurred on June 14, taken by the committee and subject to the the bank regulatory system demands noth- 2001. See 147 Cong. Rec. E 1123–E1136. ultimate control and direction of the com- ing less.’’ We will respond to your questions in the mittee. It is seen as essential, for example, I hope that the information in this staff re- order submitted. Where questions appeared that a chairman’s preliminary inquiry be port assists the Committee. to be closely related, they are answered to- able to minimize the possibility of the de- Sincerely, gether. struction of documents pending their formal DUANE R. GIBSON, 1. Was the creation of a task force a valid incorporation as committee files. In this re- COUNSEL. exercise of Committee Rule 7 authority? House rules have vested broad powers in gard, the courts have held that the legal ob- committees and their chairs to conduct over- ligation to surrender documents requested CONGRESSIONAL RESEARCH SERVICE, sight and investigative proceedings without by the chairman of a congressional com- June 29, 2001. telling them how they are to do so. House mittee arises at the time of the official re- MEMORANDUM Rule X.2(b)(1) directs that ‘‘Each standing quest, and have agreed in construing 18 To: Hon. DON YOUNG. committee . . . shall review and study, on a U.S.C. 1505, a statute proscribing the ob- From: Morton Rosenberg, Specialist in continuing basis, the application, adminis- struction of congressional proceedings, that American Public Law, American Law Di- tration, and effectiveness of those laws, or the statute is broad enough to cover obstruc- vision. parts of laws, the subject matter of which is tive acts in anticipation of a subpoena. See, Subject: Propriety of the Establishment of within the jurisdiction of that Committee e.g., United States v. Mitchell, 877 F.2d 297, an Investigative Task Force by a Com- . . . in order to determine whether such laws 300–01 (9th Cir. 1979); United States v. mittee Chairman and the Release and and the programs thereunder are being im- Tallant, 407 F. Supp. 878, 888 (D.N.D Ga. 1975). Publication in the Congressional Record plemented and carried out in accordance The Mitchell ruling is particularly perti- of a Staff Report and Documents Gath- with the intent of the Congress and whether nent to the question under consideration ered by the Task Force, and Related such programs should be continued, cur- here. In that case the appeals court upheld a Questions. tailed, or eliminated’’. House Rule XI.1(b) conviction for obstructing an investigation by the House Committee on Small Business. You have submitted seven questions that provides that ‘‘Each committee is authorized inquire as to the legal propriety or basis for at any time to conduct such investigations The court said of the obstruction statute the establishment by the House Resources and studies as it may consider necessary and that ‘‘[t]o give section 1505 the protective Committee of a task force and certain ac- appropriate in the exercise of its responsibil- force it was intended, corrupt endeavors to tions taken by that task force and its mem- ities under Rule X’’. The various House com- influence congressional investigations must bers. Our response is based on the following mittees and subcommittees have their own be proscribed even when they occur prior to facts and circumstances which you have pro- rules, procedures and practices. Different in- formal committee authorization.’’ 877 F.2d at vided, which may be briefly summarized. quiries by different committees may follow 301 (emphasis supplied). The court explained On August 15, 2000, as Chairman of the their own individual paths. Committees may the factual background as follows: House Committee on Resources and acting decide among themselves, by precedent or Applying these principles to the case at through the authority vested in you by Rule newly devised procedures, how to conduct hand, all of the circumstances surrounding 7 of the Committee’s rules, you established any particular inquiry. A committee can this investigation point to the conclusion the Task Force on the Headwaters Forest even adopt rules requiring committee votes the appellants’ corrupt endeavor was di- and Related Issues, which had a termination before initiating major inquiries, as the rected towards a legitimate House investiga- date of no later than December 31, 2000. The House Un-American Activities Committee tion. The investigation was instigated by the purpose of the Task Force was to review and (HUAC) did in the 1960’s, and the House Per- chair of a House Committee that unquestion- study actions by the Federal Deposit Insur- manent Select Committee on Intelligence ably has jurisdiction over the subject matter ance Corporation (FDIC) and the Office of has done in recent years. If such a rule is of the inquiry. The letter from Congressman Thrift Supervision (OTS) which were alleged adopted, ‘‘it must be strictly observed’’. Mitchell to the SHA expressly said that to have been undertaken by those agencies Gojack v. United States, 384 U.S. 702, 708 ‘‘[t]his Committee is presently conducting to improperly exert pressure on private par- (1966). Both committees had special reasons an investigation’’ and referred to the Small ties so that the federal government could ob- for adopting such a rule—HUAC’s stemming Business Act for its authority to do so. Fur- tain parcels of land in northern California from the controversial nature of its inves- thermore, the investigation was handled by containing groves of redwood trees adjacent tigations, the Intelligence Committee be- the chief investigator of the Small Business to the Headwaters Forest. Those parcels be- cause of the sensitivity of its inquiries—but Committee on a continuing basis for several longed to the Pacific Lumber Company the vast majority of committees have not months. * * * [T]his was a congressional inves- which was owned by Mr. Charles Hurwitz. perceived a need to adopt such a rule. tigation. Accordingly, we hold that the inves- Mr. Hurwitz was a minority owner of a failed In the instant situation, Rule 7 of the Re- tigation instigated by Congressman Mitchell was Texas savings and loan bank against whom a sources Committee’s rules authorizes the an investigation by the Small Business Com- civil suit (by the FDIC) and an administra- Chairman, after consultation with the Rank- mittee of the House that was protected by tive action (by the OTS) were brought alleg- ing Minority Member, ‘‘to appoint Task § 1505]’’. Id. (emphasis supplied). ing professional liability bonding claims. Forces, or special or select Subcommittees, The appeals court quite clearly was ap- The legal actions were said to have been to carry out the duties and functions of the proving the notion that a chairman can ini- brought as leverage to persuade Mr. Hurwitz Committee.’’ The Chairman’s August 15, 2000 tiate a proper committee investigation and to swap the redwood parcels for a settlement charter of the Task Force vested it with au- identifying two classic indicia of a chair- of these proceedings. thority ‘‘to carry out the oversight and in- man-initiated investigation: the writing of a Following a period of preliminary inves- vestigative duties and functions of the Com- letter and the handling of the investigation tigation, which included requests for produc- mittee’’ regarding the Headwaters Forest by a committee staffer (the ‘‘chief investi- tion of documents by FDIC, OTS, and the De- matter initiated by the Chairman’s letter of gator of the Small Business Committee’’). partment of Interior and private parties, and June 16, 2000. The Task Force’s duration was See also, United States v. North, 708 F. Supp. the issuance of subpoenas for withheld docu- limited to less than six months so that as- 372, 374 notes 3 and 4 (D.D.C. 1988). United ments, the Task Force held a hearing on De- signment to the Task Force would not count States v. North, 708 F. Supp. 380, 381–82 cember 12, 2000. At the conclusion of the against the limitation on Subcommittee (D.D.C. 1988). hearing the chairman of the Task Force, Mr. service under House Rule X.5(b)(2)(c). This In sum, the Chairman’s creation of the Doolittle, made the following motion, which section of the House Rules also recognizes Task Force is well founded in Committee was adopted by unanimous consent: and contemplates the creation by standing and House rules and congressional practice.

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00075 Fmt 0666 Sfmt 0634 E:\CR\FM\A20DE8.164 pfrm07 PsN: E20PT1 E2414 CONGRESSIONAL RECORD — Extensions of Remarks December 20, 2001 2. Can a Committee on Resources task to buttress the analysis and the release of report? If documents that are compelled to force generally have the powers and duties of those documents upon the release of the staff be produced are produced under a subpoena a subcommittee? report. to a federal entity and such documents are 3. Did the task force have the power and Public release of documents gathered in used in hearings or staff reports, is a judicial authority under its charter and the applica- the course of a legitimate committee inves- privilege generally waived by the federal en- ble rules to discharge the duties and func- tigation, including those introduced at a tity? tions of the committee—such as holding hearing, is well supported by the House The Staff Report indicates that FDIC and hearings, receiving testimony, compiling rules, committee practice and relevant judi- OTS have suggested that public release of staff reports and analyses, and releasing cial precedent. Under House Rule XI, 2, ‘‘all certain documents may jeopardize the agen- records and documents (into hearing records committee hearings, records, data, charts, cies’ pending civil and administrative pro- and publicly to document staff reports)? and files . . . shall be the property of the ceedings and would also waive judicial litiga- A congressional committee is a creation of House and all Members of the House shall tion privileges that may be available. Nei- its parent House and only has the power to have access thereto.’’ There is no restriction ther contention is likely to be upheld by a inquire into matters within the scope of the on the use of evidentiary material, gathered reviewing court. authority that has been delegated to it by by a committee and presented in a hearing, With respect to effect of pending civil or that body. Thus, the enabling rule or resolu- unless that ‘‘evidence’’ is taken in executive criminal litigation on the ability of a con- tion which gives the committee life is the session. In those circumstances the evidence gressional committee to conduct an over- charter which defines the grant and limita- may not be ‘‘used in public sessions without sight investigation of an agency, the Su- tions of the committee’s power. In con- the consent of the committee.’’ Rule XI, preme Court has long held that refusals to struing the scope of a committee’s author- 2(k)(7). We are advised that the subject ma- provide testimony or evidence based on an izing charter, courts will look to the words terial was not received in executive session. ongoing or potential litigation would not be of the rule or resolution itself, and then, if A Committee has a right to utilize the doc- recognized. In Sinclair v. United States, 279 necessary to the usual sources of legislative uments it has received in any manner that U.S. 263 (1929), the Court upheld the con- history such as floor debate, legislative re- enables it to perform its legitimate legisla- tempt of Congress conviction of a witness in ports, past committee practice and interpre- tive functions. In the absence of a counter- the face of such a contention, holding that tations. Jurisdictional authority for a ‘‘spe- vailing constitutional privilege or a self-im- neither the laws directing such lawsuits be cial’’ investigation may be given to a stand- posed statutory restriction upon its author- instituted, nor the lawsuit themselves ‘‘oper- ing committee, a joint committee of both ity, Congress and its committees have vir- ated to divest the Senate, or the Committee, houses, or a special subcommittee of a stand- tually plenary power to compel information of power further to investigate the actual ad- ing committee, among other vehicles. needed to discharge their legislative func- ministration of the laws.’’ 279 U.S. at 295. As indicated in the above discussion, House tion from executive agencies, private per- The Court further explained: ‘‘It may be con- Rules X and X1 clearly vest oversight au- sons, and organizations, McGrain V. ceded that Congress is without authority to thority, including the holding of hearings Daugherty, 272 U.S. 135, 177 (1927); Watkins v. compel disclosures for the purpose of aiding and the issuance of subpoenas, in its stand- United States, 354 U.S. 178, 187 (1957); the prosecution of pending suits; but the au- ing committees and their subcommittees, Barenblatt v. United States, 360 U.S. 109, 111 thority of that body, directly or through its and the creation by standing committees of (1959); Eastland v. United States Service- committees, to require pertinent disclosures subunits, such as task forces, that would men’s Fund, 421 U.S. 491, 504 n. 15 (1975), and in aid of its own constitutional power is not carry out particularized oversight tasks. The with certain constraints, the information so abridged because the information sought to Headwaters Forest Task Force was formally obtained or maybe made public, Doe v. Mc- be elicited may also be of use in such suites.’ established pursuant to Committee Rule 7 Millan, 412 U.S. 706, 313 (1973); Doe v. McMil- Id. In other words, those persons having evi- and the Task Force’s authority was particu- lan, 556 F. 2d 713–16 (D.C. Cir. 1977), cert. de- dence in their possession, including officers larly defined in its charter of August 15, 2000: nied 435 U.S. 969 (1978). and employees of executive agencies, can not ‘‘[T]o carry out the oversight and investiga- Thus, for example, where a statutory con- lawfully assert that because lawsuits are tive duties and function of the Committee fidentiality or non-disclosure provision bar- pending involving the government, ‘‘the au- regarding the oversight review specified in ring public disclosure of information is not thority of the [the congress], directly or the June 16, 2000 letter (attached hereto)’’ explicitly applicable to the Congress, the though its committees, to require pertinent and to ‘‘hold hearings on matters within its courts have consistently held that agencies disclosures’’ is somehow ‘‘abridged.’’ Id. jurisdiction’’ which are expressly delineated and private parties may not deny Congress The courts have recognized that disclo- in the charter. Such hearings are made access to such information on the basis of sures at congressional hearings may have ‘‘[s]subject to the Rules of the House of Rep- such provisions. FTC v. Owen-Corning Fiber- the effect of jeopardizing the successful pros- resentatives and the Rules of the Committee glass Corp., 626 F2d 966, 970 (D.C. Cir. 1980); ecution of civil and criminal cases, but in no on Resources’’ and had to be approved by the Exxon Corp. v. FTC, 589 F.2d 582, 589 (D.C. instance has any court suggested that this chairman prior to their announcement. Cir. 1978), cert. denied, 441 U.S. 943 (1979); provides a constitutional or legal limitation In light of this, it is likely that viewing Ashland Oil Corp. v. FTC, 548 F.2d 977, 979 on Congress’ right to conduct an investiga- court would find that the Task Force was (D.C. Cir. 1976); Moon v. CIA, 514 F. Supp. 836, tion. See, e.g., Delaney v. United States, 195 properly constituted and could validly exer- 849–51 (SDNY) 1981). Nor may a court block F. 2d 107, 114 (1st Cir. 1952). Commenting on cise all the powers of a subcommittee includ- congressional disclosure of information ob- Congress’ power in this regard, Independent ing holding hearings, receiving testimony tained from an agency or private party, at Counsel Lawrence E. Walsh, who saw suc- and documents and making such documents least when disclosure would serve a valid leg- cessful prosecutions judicially overturned part of the hearing record, directing the islative purpose. Doe v. McMillan, 412 U.S. because of public testimony at congressional preparation of staff reports and analyses, 306, 312 (1973); FTC v. Owens-Corning Fiber- hearings, observed that ‘‘[t]he legislative and authorizing the release of such staff re- glass, supra, 626 F.2d at 970. branch has the power to decide whether it is ports together with supporting documentary Since none of the documents in question more important perhaps even to destroy a evidence gathered by the Task Force. were received in an executive session of the prosecution rather than to hold back testi- 4. Regarding the unanimous consent re- Task Force, no vote of the Task Force or the mony they need. They make that decision. It quest by Chairman Doolittle on December 12, full Committee was necessary to release is not a judicial decision or a legal decision 2000, is it, coupled with the permission of them, and all the documents and records of but a political decision of the highest impor- Chairman Hansen, valid authority to release the Task Force were available for inspection tance.’’ See Walsh, ‘‘The Independent Coun- of the report? by any member of the House. Chairman Han- sel and the Separation of Powers,’’ 25 Hous. 5. Does the unanimous consent request, sen’s authorization to Mr. Pombo was suffi- L. Rev. 1,9 (1998). See also ‘‘Investigative coupled with the release of the report into cient (although probably not necessary) to Oversight: An Introduction to the Law, Prac- the Congressional Record also cover the re- permit him to insert the entire staff report tice and Procedure of Congressional Inquiry, lease of the records contained in the appen- in the Congressional Record. 4, 23–29, CRS Report No. 95–464A, April 7, 1995 dices to the report? Generally, is a vote of 6. Please review the section in the report (CRS Report). the Full committee required in order to re- entitled ‘‘Use of Records and Documents’’ Similarly, precedents of the House of Rep- lease such subpoenaed documents and and comment on whether it is accurate and resentatives and the Senate, which are records? Was it in this situation? whether it is correct with respect to utiliza- founded on Congress’ inherent constitutional Task Force Chairman Doolittle’s unani- tion of allegedly privileged documents by a prerogative to investigate, establish that ac- mous consent request adopted at the conclu- committee in a staff report under the cir- ceptance of common law testimonial privi- sion of the December 12, 2000 hearing had the cumstances contained in this memo. leges, such as attorney-client or work prod- effect of making two categories of docu- 7. Do litigation privileges apply to con- uct privileges, rests in the sound discretion ments—documents utilized during the hear- strain release of records in such a staff re- of a congressional committee regardless of ing and those produced by the Department of port by the Task Force or the Committee on whether a court would uphold the claim in Interior—part of the record of the hearing. It Resources in the House? If records are used the context of litigation. See, CRS Report a also authorized the use of documents re- in a staff report under the circumstances ex- pp. 43–56. Indeed, Resources Committee Rule ceived by the Task Force which are not with- plained in this memo and the use impacts 4(i) specifically provides that: ‘‘Claims of in those two categories to be utilized in the litigation, is there any bar to the utilization common-law privilege made by witnesses at preparation of a staff report where necessary or release of records that document a staff hearings, or by interviewees or deponents in

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00076 Fmt 0666 Sfmt 0634 E:\CR\FM\A20DE8.168 pfrm07 PsN: E20PT1 December 20, 2001 CONGRESSIONAL RECORD — Extensions of Remarks E2415 investigations or inquiries, are applicable tives v. Dept. of Commerce, 961 F. 2d 941, 946 lative process and protected by the Clause. only at the discretion of the Chairman, sub- (11th Cir. 1992); Murphy v. Department of the Indeed, since Gravel and the revelation of ject to appeal to the Committee.’’ Army, 613 F. 2d 1151, 1155 (D.C. Cir. 1979). the classified Pentagon Papers on the floor Next, we turn to the question whether pub- As we understand it, documents about of the Senate by Senator Gravel, the disclo- lication of the documents received during which FDIC and OTS have raised concerns sure of less sensitive proprietary matter in the course of your investigation will have are ones that were withheld and had to be legislative forums such as the floor or in the effect of waiving any privileges that subpoenaed. On the basis of the above-delin- hearings is unlikely to be successfully chal- might otherwise be asserted in any pending eated precedents, the agencies could make a lenged. A review of ethics proceedings in the or future litigation. Our review of the appli- plausible arguments that they raised suffi- House since 1978 conducted by the House cable case law, and the constitutional prin- cient resistence to demonstrate that the dis- Committee on standards of official conduct ciples underlying congressional oversight closure was involuntary and thus not a waiv- indicates that there have been only two in- and investigations, lead us to conclude that er or privilege. stances involving matter inserted in the a reviewing court is not likely to find that Finally, it may be noted that publication Congressional Record. In one, Rep. Thomas disclosure by your Committee, under the cir- of the staff report and attached documents is L. Blanton (TX) was censured on October 22, cumstances now obtaining, would effect a ultimately protected by the Speech or De- 1921 for publishing a document in the Con- waiver of any privileges that might be as- bate Clause of the Constitution, Art I, sec. 6, gressional Record that contained ‘‘indecent serted in a related court proceeding. cl. 1, and that such publication, since it does and obscene language.’’ In 1977 a compliant More particularly, once documents are in not contain classified material, is unlikely against Rep. Michael J. Harrington (MA) for congressional hands, the courts have held to be sanctioned under the ethics rules of the leaking classified information in the Record that they must presume that the committees House. was dismissed upon finding that the informa- of Congress will exercise their powers re- The purpose of the Speech or Debate tion had not been properly classified. See sponsibly and with due regard for the rights Clause, which provides that ‘‘for any Speech Committee on Standards of official conduct, of effected parties. FTC v. Owens-Corning Fi- or Debate in either House, (Members} shall ‘‘Historical Summary of Conduct Cases in berglass Corp., 626 F. 2d 966, 90 (D.C. Cir. not be questioned in any other place,’’ is to the House of Representatives,’’ April 1992. 1980); Exxon Corp. v. FTC, 589F. 2d 582, 589 assure the independence of Congress in the (D.C. Cir. 1978), cert denied, 441 U.S. 943 exercise of its legislative functions and to re- United States House of Representatives (1979); Ashland Oil Corp. v. FTC, 458 F. 2d 977, inforce the separation of powers established Committee on Resources Staff Report 979 (D.C. Cir. 1976). Nor may a court block in the Constitution. Eastland v. United REDWOODS DEBT-FOR-NATURE AGENDA OF THE congressional disclosure of information ob- States Servicemen’s Fund, supra, 421 U.S. at FEDERAL DEPOSIT INSURANCE CORPORATION tained from an agency or private party, at 502–03 (1975). The Supreme Court has read the AND THE OFFICE OF THRIFT SUPERVISION TO least where disclosure would serve a valid clause broadly to effectuate its purposes. ACQUIRE THE HEADWATERS FOREST, JUNE 6, legislative purpose. Doe v. McMillan, 412 U.S. Eastland supra; see also, United States v. 2001 Swindall, 971 F.2d 1531, 1534 (11th Cir. 1992). 306 (1973); FTC v. Owings-Corning Fiberglass The records, documents, and analysis in The clause protects ‘‘purely legislative ac- Crop., supra, 626 F. 2d at 970. this report are provided for the information It is also well established that when the tivities’’, including those inherent in the leg- of Members of the Committee on Resources production of privileged communications is islative process. Chastain v. Sundquist, 833 pursuant to Rule X 2.(a) and (b) of the Rules judicially compelled, compliance with the F.2d 311, 314 (D.C. Cir. 1987) (quoting U.S. of the House of Representatives, so that order does not waive the applicable privilege Brewster, 408 U.S. 501, 512), cert. denied, 487 Members may discharge their legislative and in another litigation, as long as it is dem- U.S. 1240 (1988). The protection of this clause oversight responsibilities under such rules. onstrated that the compulsion was resisted. is not limited to words spoken in debate. This report has not been officially adopted See, e.g., U.S. v. De La Jara, 973 F. 2d 746, ‘‘Committee reports, resolutions, and the act by the Committee on Resources and may not 749–50 (9th Cir. 1992) (‘‘In determining wheth- of voting are equally covered, as are things therefore reflect the views of its members. er the privilege should be deemed waived, generally done in a session of the House by the circumstances surrounding the disclo- one of its members in relation to the busi- PREFACE sure are to be considered. Transamerica ness before it.’’ Powell v. McCormack, 395 Documentation References Computer, 573 F. 2d at 650.’’) Westinghouse U.S. 486, 502 (1969). Thus, so long as legisla- Documentation is referenced in Electric Corp. v. Republic of the Philippines, tors are ‘‘acting in the sphere of legitimate parentheticals throughout the text of this 951 F. 2d 1414, 1427, 1427 n. 14 (3d Cir. 1991) legislative activity,’’ they are ‘‘protected not report. References to ‘‘Document A’’ are ref- (‘‘We consider Westinghouse’s disclosure to only from the consequences of litigation’s erences to documents that were incorporated the DOJ to be voluntary even those it was results but also from the burden of defending into the hearing record by unanimous con- prompted by a grand jury subpoena, Al- themselves.’’ Tenney v. Brandhove, 341 U.S. sent by the Task Force on Headwaters For- though Westinghouse originally moved to 367, 376–377 (1951). The clause has been held to est and Related Matters on December 12, quash the subpoena, it later withdrew the encompass such activities integral to the 2000. These documents are contained in the motion and produced the documents pursu- lawmaking process as circulation of informa- files of the Committee and those that are re- ant to the confidentially agreement. Had tion to other Members, Doe v. McMillan, 412 ferred to are reproduced in Appendix 1. Docu- Westinghouse continued to object to the sub- U.S. 306, 311–312 (1973); Gravel v. United mentation referenced as ‘‘Record 1,’’ ‘‘Record poena and produced the documents only after States, 408 U.S. 606, 625 (1972), and participa- 2’’ etc. is documentation found in Appendix being ordered to do so, we could not consider tion in committee investigative proceedings, 2. Much of this documentation was not intro- the disclosure to do so to be voluntary’’) (em- and reports. DOE v. McMillan, supra; U.S. duced as part of the hearing record, and it is phasis supplied); Jobin v. Bank of Boulder Servicemen’s Fund v. Eastland, supra; provided for reference to substantiate key (In re M&L Business Machines Co.), 167 B.R. Dombrowski v. Eastland, 387 U.S. 82 (1967); facts referenced in this report. References to 631 (D. Colo. 1994) (‘‘Production of documents Tenney v. Brandhove, supra. ‘‘Document DOI A,’’ ‘‘Document DOI B,’’ etc. under a grand jury subpoena does not auto- But the clause does not protect activities are references to documents that were incor- matically ciliate the attorney-client privi- only casually or incidentally related to leg- porated into the hearing record by unani- lege, much less in an unrelated civil pro- islative affairs. Thus newsletters or press re- mous consent of the Task Force on Decem- ceeding brought by a non-governmental enti- leases circulated by a Member to the public ber 12, 2000. These documents were produced ty. This is especially true in a case such as are not shielded because they are ‘‘primarily to the Committee from the Department of this, where the record demonstrates that the means of informing those outside the legisla- the Interior. Appendix 4 contains the cor- Bank has consistently sought to protect its tive forum.’’ Hutchinson v. Proxmire, 443 respondence between the Committee and the privilege.’’). Some courts have even refused U.S. 111 (1979). The key consideration in such bank regulators. to find waiver when the client’s production, cases is the act presented for examination, All documentation referenced in this re- although not compelled, is pressured by the not the actor. Activities integral to the leg- port and attached in an appendix is nec- court. Transamerica Computer Corp. v. IBM, islative process may not be examined, but essary to contextually verify the informa- 576 F. 2d 646, 651 (9th Cir. 1978). Similarly an- peripheral activities not closely connected tion and conclusions reached in this report other court found that a client’s voluntary to the business of legislating do not get the on subjects within and related to the juris- production of privileged documents during protection of the clause. Walker v. Jones, 733 diction of the Committee on Resources. The discovery did not effect a waiver because it F.2d 927, 929 (D.C. Cir. 1984). Thus, dissemina- records, documents, and analysis in this re- was done at the encouragement of the pre- tion directly to the press of the documents port are provided for the information of siding judge. Duplan Corp. v. Deering themselves or of staff reports that contain Members pursuant to Rule X 2.(a) and (b) of Milliken, Inc., 979 F. supp. 1146, 1163 (S.D.S.C information that describes or quotes from the Rules of the House of Representatives, so 1974) (finding no waiver ‘‘where voluntary the documents, may not come under the pro- that Members may discharge their respon- waiver of some communications was made tection of the Clause. But dissemination of sibilities under such rules. upon the suggestion of the court during the staff reports to Members of the Committee Role of the Committee on Resources: The Head- course of the in camera proceedings.’’). and their staff, or the inclusion of such re- waters Forest Purchase and Management Moreover, at least two federal circuits ports, or the documents themselves, in the Ordinarily, one would think that the Com- have held that disclosures to congressional record of public sessions of the hearings, or mittee on Resources does not regularly committees do not waiver claims of privilege the Congressional Record, are functions that interact or have jurisdiction over bank regu- elsewhere. See, Florida House of Representa- are likely to be held ‘‘integral’’ to the legis- lators. It is important to understand that

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00077 Fmt 0666 Sfmt 0634 E:\CR\FM\A20DE8.171 pfrm07 PsN: E20PT1 E2416 CONGRESSIONAL RECORD — Extensions of Remarks December 20, 2001 the Committee on Resources has jurisdiction Committee staff has redacted sensitive in- that Mr. Hurwitz somehow raised the issue over the underlying law that initially au- formation (for example information unre- first, but they can point to no document thorized the purchase of the Headwaters For- lated to redwoods or debt-for-nature and in- written evidence prior to September 6, 1995, est by the United States and management of formation involving legal strategy) of cer- when Mr. Hurwitz finally submitted and the land by the Bureau of Land Management. tain records and documents to preserve the broached the possibility of swapping red- That law was enacted in November 1997 and integrity of the judicial and administrative woods for bank claims. is P.L. 105–83, Title V, 111 Stat. 1610. That proceedings. It is expected that the FDIC and After an intense banking regulator effort legislation was incorporated in an appropria- OTS may erroneously say that disclosure of to get the redwoods that lasted from 1993 tions bill that funded the Department of the certain documents and records will undercut through 1998, the federal government and the Interior. their litigation position. While many of the State of California switched the plan and Several conditions constrained the Head- documents and records disclosed may be purchased the redwood land owned by Mr. waters authorization. One of those condi- quite embarrassing to the bank regulators, Hurwitz’s company. They did so as author- tions was that any ‘‘funds appropriated by embarrassment is no basis for keeping the ized by Congress (P.L. 105–83, Title V, 111 the Federal Government to acquire lands or information about the unauthorized red- Stat. 1610). interests in lands that enlarge the Head- woods debt for nature scheme secret. Some After the federal purchase, the residue was: waters Forest by more than five acres per sunshine will expose the unauthorized red- (1) fatally flawed banking claims that lacked each acquisition shall be subject to specific woods agenda of the bank regulators in this merit; (2) bank regulators standing alone authorization enacted subsequent to this case and sanitize the system in the future. having been used politically by the White Act.’’ This clause in the authorizing statute House and Department of the Interior; (3) a Background and Summary is commonly referred to as the ‘‘no more’’ group of environmentalists still screaming clause, because it prohibits federal money On December 12, 2000, the Task Force on ‘‘debt-for-more-nature;’’ (4) a federal judge from being used to expand the Headwaters Headwaters Forest and Related Matters held who compared the tactics of the bank regu- Forest after the initial federal acquisition. a hearing that exposed an evolving redwoods lators to those of hired governments and the This was part of the agreement between the ‘‘debt-for-nature’’ scheme undertaken by ‘‘Cosa Nostra’’ (the mafia); and (5) Mr. Administration and the Congress when funds bank regulators—the Federal Deposit Insur- Hurwitz who was required to spend upwards were authorized and appropriated for the ance Corporation (FDIC) and the Office of of $40 million to fight the scheme. In short, purchase of the Headwaters Forest. The fed- Thrift Supervision (OTS). Presented at that the residue was a big mess. eral acquisition actually took place on hearing was substantial documentation and However, not until the oversight review March 1, 1999, the final day of the authoriza- testimony showing how federal banking reg- and December 12, 2000, hearing of the Task tion, at which time all federal activity to ac- ulators, swayed by an intensive environ- Force did the banking regulators’ redwoods quire additional Headwaters Forest should mentalist lobbying campaign, willingly be- ‘‘debt-for-nature’’ motivation, which have been dropped. Thus, the FDIC’s lawsuit came integral to a ‘‘debt-for-nature’’ scheme stumped their own negative evaluation of and the OTS’s administrative action should to obtain redwood trees. the merits of their case, become more fully be dropped. In short, banking regulators provided the understood. It was clear after the hearing This statute, including the ‘‘no more’’ otherwise unavailable leverage for a federal that the ‘‘professional liability’’ claims clause, is part of the Committee’s basis to plan to extort privately owned redwood would have been administratively closed— compel bank regulators to provide docu- trees. The leverage used was the threat of never even brought to the FDIC board by ments and testimony about subjects related ‘‘professional liability’’ banking claims FDIC staff for action—had Mr. Hurwitz not to the Headwaters Forest, debt-for-nature, against Mr. Charles Hurwitz, a minority owned Pacific Lumber Company and the redwoods, and related subjects. The sheer owner of United Savings Association of Headwaters Forest redwood trees. volume of material possessed by the banking Texas (USAT), a failed Texas savings and Instead, intense political pressure, intense regulators on subjects related to the Head- loan. environmental lobbying, and White House waters Forest, possible acquisition of Head- Mr. Hurwitz was a favorite target of cer- pressure to pursue the banking claims as le- waters Forest, and redwoods debt-for-nature tain environmental activists who wished to verage for redwoods outweighed the standard schemes provide more than adequate basis obtain the large grove of redwood trees in operating procedure to administratively for the Committee’s jurisdiction over these northern California, redwoods that belonged close the USAT case, because there was no agencies about these subjects. Additionally, to a company, the Pacific Lumber Company, USAT case. Two sets of banking regulators— the banking regulators have submitted also owned by Hurwitz. The environmental the FDIC and the OTS—became willing in- themselves, properly, to the jurisdiction of interests pressured Congress, the Adminis- struments and partners in the debt-for-na- the Committee. tration, and the banking regulators to bring ture scheme as they violated their own test Use of Records and Documents the banking actions against Mr. Hurwitz and for bringing ‘‘professional liability’’ claims. Bank regulators brought the claims against The FDIC and the OTS will undoubtedly USAT. The idea was that the actions or Mr. Hurwitz even though they were more complain that use of some of the records and threat of actions would lever or even force likely than not to fail and were not cost ef- documents disclosed in this report will jeop- Mr. Hurwitz into transferring redwood trees fective. ardize their case against Mr. Hurwitz, and to the federal government. The FDIC suit (Federal Deposit Insurance The banking regulators’ own assessment that certain litigation privileges or a court was that their action would have a 70% like- seal apply to the documents; however, as Corporation, as manager of the FSLIC Reso- lution Fund v. Charles Hurwitz, Civil Action lihood of failure on statute of limitation stressed above, all documentation in this re- grounds alone. Even if the claims survive the No. H–95–3956) and the OTS administrative port and attached in an appendix is nec- statute of limitation challenges, their own action (In the Matter of United Savings As- essary to contextually verify the informa- cerebral assessment put less than a 50% like- sociation of Texas and United Financial tion and conclusions reached in this report. lihood of success on the merits of their Group, No. WA 94–01) against Mr. Hurwitz ac- The documentation directly bears on sub- claims. These are not the conclusions of the tually became what the environmentalists jects within and related to the jurisdiction of Task Force, although some Members may and political forces sought: the legal actions the Committee on Resources. well agree with them; they are the conclu- The records, documents, and analysis in were the leverage for redwoods. sions of the bank regulators themselves. this report are provided for the information The bank regulators knew that their ac- Moreover, the bank regulators (OTS and of Members. Informing Members has legal tions would be the leverage for such a debt- FDIC) held numerous meetings about the basis in Article I of the Constitution and is for-nature transaction. Between late 1993 and redwoods debt-for-nature scheme, and at a implied because Members of Congress need when the actions were initiated, the bank critical juncture right before they reversed accurate information to legislate. Indeed, regulators became more and more enmeshed their recommendation to the FDIC board, the Committee has legislated on the Head- with the environmental groups, the Depart- they met with DOI. The bank regulators waters Forest. Informing members also has ment of the Interior, and the White House in walked away from that meeting knowing legal basis under rule X 2.(a) and (b) of the the redwoods debt-for-nature scheme. In the that [i]f we drop [our] suit, [it] will undercut Rules of the House of Representatives. Mem- end, they ignored every prior internal anal- everything.’’ (Record 21). This is the meeting bers will be better able to discharge their re- ysis indicating that they would lose the that most likely ensured that the leverage sponsibilities under such rules after review- USAT suit, so them teamed up and brought for the redwoods desired by the DOI and the ing the infomation in this report. it administratively and in the courts. Clinton Administration would become real Some may believe that litigation privi- Ultimately, the FDIC suit and their hiring through filing legal and administrative ac- leges might prohibit use of the records not of OTS to bring the separate administrative tions. already part of the Task Force hearing action forced Mr. Hurwitz to the negotiation These contacts were far outside of normal records. However, litigation privileges do not table. The bank regulators, in concert with operating practice for banking regulator and generally apply to Congress. They are cre- the Department of the Interior and the were described by the former Chairman of ated by the judicial branch of government White House, actually baited Mr. Hurwitz the FDIC as ‘‘shocking’’ and ‘‘highly inap- for use in that forum. Assertions of any liti- into raising the redwoods issue first, so it propriate’’ (Hearing Transcript, 43–44). gation privileges by the FDIC or the OTS or would not appear that the bank regulators In addition, the former FDIC Chairman Mr. Hurwitz related to documents that are were seeking redwood trees. Indeed the bank told the Task Force that environmental ref- disclosed in this report may still be made in regulators still try to propogate the fiction erence to redwoods does not have ‘‘any rel- the judicial forum. evance whatsoever [on] whether or not you

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00078 Fmt 0666 Sfmt 0634 E:\CR\FM\A20DE8.175 pfrm07 PsN: E20PT1 December 20, 2001 CONGRESSIONAL RECORD — Extensions of Remarks E2417 [the FDIC] sue[s] Charles Hurwitz and redwoods agenda. The OTS was present dur- ‘‘focus[es] on preventing further problems.’’ Maxxam over the failure of United Savings. ing some of those meetings and was report- The USAT case is an exception to these stat- Whether they own redwood trees or not is ab- edly ‘‘amenable’’ to the redwoods debt-for- ed policies of federal institutions. solutely, totally irrelevant.’’ (Hearing Tran- nature strategy. Nowhere in the statutes authorizing the script, page 45). This stinging rebuke from a Even after the outright federal acquisition, OTS or the FDIC is there authority to pursue past FDIC Chairman is a fitting assessment which was by purchase, the call became ‘‘professional liability’’ claims or other of the actions of an agency caught up in a ‘‘debt for more nature,’’ through a continued claims for purposes of obtaining redwood debt-for-nature agenda that was too big, too use of the bank regulators leverage of suits trees or ‘‘debt-for-nature’’ schemes. The sole political, and too unrelated to its statutorily that were in process already. The claims con- purpose of such actions with respect to failed authorized purpose. tinued to be used by the federal government institutions is to recover funds or cash—not While there were many factors that nudged to lever Mr. Hurwitz for more nature, at that trees and not nature. the FDIC, and by association the OTS, into juncture arguably in violation of the author- The mission of recovering cash was ac- the debt-for-nature scheme—its own outside izing statute. knowledged by the OTS and FDIC. See, Hear- counsel, the law firm of Hopkins & Sutter— What remained at the end of the day were ing Transcript, page 63, 64, Ms. Seidman provided early and direct links into the envi- filed claims that would not have been (OTS) answered: ‘‘Our restitution claim is ronmental advocates who lobbied and advo- brought under ordinary circumstances had brought for cash.’’ Ms. Tanoue (FDIC) an- cated for federal acquisition of the Head- Mr. Hurwitz not owned redwoods. The bank swered: ‘‘[T]he FDIC considered all options waters Forest through a debt-for-nature bureaucracy, with its reason for bringing the to settle claims at the encouragement of Mr. scheme. In fact, they were selected over as claims in the first place having evaporated, Hurwitz and his representative agency, outside counsel other firms because of their continued the fiction: they continued propa- looked at trees, but the preference has al- environmental connections and ability to gating the false notion that redwoods and ways been for cash.’’) Indeed, this may be handle a redwoods debt-for-nature swap. debt-for-nature had nothing to do with their why the FDIC and the OTS have consistently In addition, the predisposition of the legal bringing the USAT claims. Mr. Hurwitz maintained that Mr. Hurwitz was the first to staff of the FDIC and OTS, the strong desires raised it first, they said, even as the FDIC bring the notion of redwood trees to them. It of Department of the Interior and the White told Department of the Interior that they is the only position they can take that is House, the creative lobbying of the Rose needed an ‘‘exit strategy’’ from the redwoods consistent with their underlying authority. Foundation and the radical Earth First! pro- issue. If redwoods had nothing to do with This being the case, there should have been testers (whose effect was felt and noted in bringing or pursuing the claims in the first few, if any, records concerning redwoods pro- the FDIC Board Meeting discussions during place, then there would be no need for an duced to the Committee. To the contrary, consideration of the USAT matter) all al- ‘‘exit’’ strategy from the redwoods issue. the records produced were voluminous—and lowed the redwoods debt-for-nature scheme The documentation discovered by Chair- redwoods were even a topic discussed by the to pollute FDIC and OTS decision-making man Young and Task Force Chairman Doo- FDIC board when it reviewed whether to about the potential claims over USAT’s fail- little, which is explained in this report, dis- bring suit regarding USAT. ure. Very little if any documentation pro- pels the notion that Mr. Hurwitz raised the vided to the Task Force justified, on a sub- Chronological Facts and Analysis Regarding the redwoods debt-for-nature first. To the con- FDIC and OTS Pursuit of USAT Claims stantive basis, the decision to proceed with trary, the federal government, bank regu- the banking actions against Mr. Hurwitz and lators included, actually baited Mr. Hurwitz 1986: Mr. Hurwitz Buys Pacific Lumber Com- the other USAT officers and directors. into raising it, and they became uncomfort- pany and Its Redwood Groves Redwoods and ‘‘debt-for-nature’’ were not able when he had not raised it nearly a year Mr. Charles Hurwitz owns Pacific Lumber part of banking regulators decision-making after the FDIC suit was filed and months Company. He acquired it in a hostile take- or thought process early in the investigation after the OTS suit was brought. over on February 26, 1986, using high yield of possible USAT banking claims—from De- This report synthesizes records and infor- bonds. Pacific Lumber Company owned the cember 1988 through about August 1993. The mation about the redwoods ‘‘debt-for-na- Headwaters Forest, a grove of about 6,000 notion was first introduced to the FDIC in ture’’ scheme of banking regulators, the in- acres of old redwood trees. That property be- November 1993, when the redwoods debt-for- formation subpoenaed from the FDIC and came desired by environmental groups be- nature proposal sent to them by Earth First! OTS, and the information collected at the cause of the redwood trees. was ‘‘reviewed’’ by FDIC lawyers. The first December 12, 2000, hearing of the task force. After Mr. Hurwitz bought Pacific Lumber Congressional lobbying of bank regulators Ordinary Role of the FDIC and OTS; Regulate Company, he and the company became a tar- promoting redwoods debt-for-nature oc- Banks and Recover Money get of several environmental groups when curred by letter on November 19, 1993. The the company increased harvest rates on its As a starting point, it is helpful to under- first known in-person lobbying of bank regu- land. Harvests were still well within sustain- stand the ordinary and authorized role of lators by a Member of Congress about poten- able levels authorized under the company’s bank regulators when financial institutions tial claims of bank regulators being swapped state forest plan, but harvest rates were gen- fail. The FDIC is the independent govern- for redwoods occurred in February 1994. The erally greater than prior Pacific Lumber ment agency created by Congress in 1933 to tainting of any possible legitimate banking Company management undertook. maintain stability and public confidence in claims began with the occurrence of that Environmentalist publicly framed the the nation’s banking system by insuring de- very unusual meeting. Hurwitz takeover of Pacific Lumber Com- posits. The FDIC administers two deposit in- The documents and records show how the pany, as that by a ‘‘corporate raider’’ who surance funds, the Bank Insurance Fund for redwoods debt-for-nature notion ultimately floated ‘‘junk bonds’’ to finance a ‘‘hostile commercial banks and other insured finan- permeated bank regulators decisions while takeover’’ of the company to simply cut cial institutions and the Savings Association they developed and brought their claims down more old redwood trees. It is unclear Insurance Fund for thrifts. against Mr. Hurwitz. As the claims were whether framing this issue in such a way had Other than its deposit insurance function, kept active during fourteen tolling agree- more to do with intense fundraising motiva- the FDIC is the primary regulator for banks. ments between bank regulators and Mr. tions aligned with certain environmental It supervises, monitors, and audits the ac- Hurwitz as the leverage against him for red- groups described in the recent Sacramento tivities of federally insured commercial woods using those claims was applied. And Bee series about financing the environ- banks and other financial institutions. The when the claims were authorized and then mental movement (www.sacbee.com/ FDIC is also responsible for managing and filed on August 2, 1995, the claims became news.projects/environment/20010422.html) or disposing of assets of failed banking and more leverage. more to do with ensuring that trees are not thrift institutions, which is what it did con- In the end, the evidence is clear that, but cut. cerning USAT, 24 percent of which was for the environmentalists pressure to get At this juncture, Mr. Hurwitz and Pacific owned by Mr. Charles Hurwitz. In connection redwoods through debt-for-nature and, but Lumber Company were targets of environ- with its duties associated with failed banks, for Congressional pressure to get leverage on mentalists, but his opponents had little le- the FDIC manages the Federal Savings and Mr. Hurwitz to submit and give up his red- verage to stop the redwood logging on the Loan Insurance Corporation Resolution woods to the government, the banking company’s land other than the traditional Fund, which includes the assets and liabil- claims would not even have been brought. Endangered Species Act or State Forest Interestingly, it was unknown early in ities of the former FSLIC and Resolution Practices Act mechanism. that process whether a settlement for poten- Trust Corporation. tial USAT claims would be viable at all or The OTS is the government agency that 1988: Hurwitz’s 24% Investment in Texas Sav- include redwoods, or whether the govern- performs a similar functions to that of the ings and Loan is Lost ment would possibly purchase the redwoods. FDIC for thrifts insured through a different Mr. Hurwitz also owned 24% of USAT, a In any case, the threat of and actual FDIC insurance fund. The OTS is the primary reg- failed Texas-based thrift bank. The bank and OTS claims brought Mr. Hurwitz to the ulator for thrifts. The responsibilities of the failed on December 30, 1988, just like 557 negotiating table. Prior to the claims being FDIC and OTS overlap in certain instances. banks and 302 thrifts failed in Texas between filed, the FDIC conspired with the White The OTS has explained how the two agencies 1985 and 1995 resulting from the broad-based House and the Department of the Interior divide those shared responsibilities: the collapse of the Texas real estate market. As about the importance and role of the bank- FDIC ‘‘seek[s] restitution from wrongdoers a result of the failure, the banking regu- ing claims to advance the debt-for-nature associated with failed thrifts’’ and the OTS lators say they paid out $1.6 billion from the

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00079 Fmt 0666 Sfmt 0634 E:\CR\FM\A20DE8.180 pfrm07 PsN: E20PT1 E2418 CONGRESSIONAL RECORD — Extensions of Remarks December 20, 2001 insurance fund to keep the bank solvent and Hurwitz made numerous agreements begin- lays out the scheme: ‘‘Coincidently, Hurwitz secure another owner. That number has ning November 22, 1991, expiring July 31, is asking for more than $500 million for the never been substantiated by documentation. 1995, to toll the statute of limitations. This Headwaters Forest redwoods. So if your Because Hurwitz owned less than 25% of gave the bank regulators more time to inves- agency can secure the money for his failed the bank, and because he did not execute tigate while they withheld filing of a claim. S&L, we the people will have the funds to what is known as a ‘‘net worth maintenance These agreements are fairly routine in com- buy Headwaters Forest. Debt-for-nature. agreement,’’ he was not obligated to con- plex cases like USAT. Right here in the U.S. That’s where you tribute funds to keep the bank solvent when Beginning in August 1993 while the statute come in. Go get Hurwitz.’’ (Document E) it failed. Such agreements (or obligations was still tolled, several actions to attempt to The FDIC apparently took Earth First! se- when a person owns 25 percent or more of an acquire the Headwaters Forest were taken in riously. Within one month, the FDIC lawyers institution) are enforced through what is Congress and urged by environmental reported to the acting chairman in a memo known as a ‘‘professional liability’’ action groups. For example, on August 4, 1993, Rep. that they were ‘‘reviewing a suggestion by brought by bank regulators. Hamburg introduced a bill to purchase 44,000 ‘Earth First’ that the FDIC trade its claims In certain cases, the FDIC and OTS are au- acres (20 percent) of the Pacific Lumber against Hurwitz for 3000 acres of redwood for- thorized by law to bring to recover money is Company’s land and make it into a federal ests owned by Pacific Lumber, a subsidiary of for the ‘‘professional liability’’ against offi- Headwaters Forest. In August 1993, the first Maxxam,’’ (emphasis supplied) (Document G, cers, directors, and owners of failed banks. contact between the Rose Foundation (the December 21, 1993, Memorandum to Andrew The idea is to recover restitution—money—it primary environmental proponent of advanc- Hove, Acting Chairman, From Jack D. took to make failed institutions solvent. ing USAT claims against Hurwitz to obtain Smith, Deputy General Counsel). The hand- This type of claim was brought against Mr. Pacific Lumber redwoods) and attorneys for written note on the top of the page indicates Hurwitz by the bank regulators at OTS after the FDIC was made. that the acting chairman Hove was orally they were hired to do so by the FDIC. The As early as November 30, 1993, FDIC attor- briefed about the USAT situation prior to nature of ‘‘professional liability’’ claims are neys were aware of the Hamburg Headwaters the memo. explained well in bank regulator’s publica- bill and ‘‘materials from Chuck Fulton re: Thus, well before Mr. Hurwitz raised the tion as follows: ‘‘Professional Liability [PL] net worth maintenance obligation’’ (Record issue of redwoods and debt-for-nature di- activities are closely related to important 3A). The handwritten FDIC memo from Jack rectly with the FDIC in August or Sep- matters of corporate governance and public Smith to Pat Bak notes that the professional tember 1996 with the bank regulators, its confidence. . . . [They] strengthen the per- liability section ‘‘is supposed to pursue that lawyers had received written proposals from ception and reality that directors, officers, claim.’’ It reminds her not to ‘‘let it fall the radical group Earth First!, and the FDIC and other professionals at financial institu- through the crack!’’ And if the claim is not was undertaking a review of the proposals. tions are held accountable for wrongful con- viable, the banking regulators ‘‘need to have These were proposals making the connection duct. To this end, the complex collection a reliable analysis that will withstand sub- between Hurwitz, the redwoods, and USAT process for PL claims is conducted in as con- stantial scrutiny.’’ (Record 3A). bank claims. sistent and fair a manner possible. Potential Pressure to advance claims against Then in the close of 1993, a press inquiry claims are investigated carefully after every Hurwitz in connection with the redwoods in report to Chairman Hove on debt-for-nature bank and savings and loan failure and are a debt-for-nature swap came in a variety of and the redwoods was received and docu- subjected to a multi-layered review by the forms to the FDIC. It first came from Con- mented from the Los Angeles Times. The press question was whether FDIC lawyers FDIC’s attorneys and investigators before a gress on November 19, 1993, in a letter to the have considered whether ‘‘we could legally final decision is rendered on whether to pro- FDIC Chairman from Rep. Henry B. Gon- swap a potential claim of $548 million ceed. . . .’’ (Managing the Crisis: The FDIC zalez, Chairman of the House Committee on against Charles Hurwitz (stemming from the and the RTC Experience 1980–94, published by Banking (Record 2). Numerous written Con- failure of United Savings Association of FDIC, August 1998, page 266) gressional contacts with the banking regu- Indeed, the bank regulators at the FDIC lators, most urging FDIC or OTS to bring Texax) for 44,000 acres of redwood forest undertook an investigation of USAT begin- claims against Hurwitz occurred in late 1993 owned by a Hurwitz controlled company.’’ ning when USAT failed on December 31, 1988, when the debt-for-nature scheme was framed (Record 3B) The redwoods debt-for-nature scheme had to determine what claims they might have and subsequently over the years. been introduced via these various venues against USAT officers, directors, and owners. On the same day, Bob DeHenzel, an FDIC lawyer, got an e mail about a ‘‘strange call’’ during 1993. At the same time FDIC’s own 1989-September 1991: Investigation Continues regarding USAT (Record 1). It was received analysis had shown absolutely no basis for a The investigation of USAT proceeded, and by Mary Saltzman from a Bob Close, who banking claim lawsuit involving USAT. How- interim reports were issued by law firms in- claimed to be ‘‘working with some environ- ever, it was not until early 1994 when the vestigating potential USAT claims for the mental groups’’ and wished to talk to who- FDIC and their agent, the OTS, adopted the FDIC. Environmentalists initiated various ever was investigating the USAT matter. He redwoods debt-for-nature scheme, and it be- non-banking campaigns to block redwoods had detailed knowledge about the $532 mil- came inextricably intertwined in its USAT timber activities of Pacific Lumber Com- lion claim related to USAT and Charles bank claims. Ironically, it was political pany on their Headwaters land. Hurwitz. He made the comment that ‘‘people forces that inticed the bank regulators, who October 1991-November 1993: Bank Regulators like Hurwitz must be stopped.’’ He said he are supposed to act on bank claims without Find No Fraud, No Gross Negligence, No Pat- was working with an environmental group political influence, into wholesale and will- tern of Self-Dealing called EPIC in Northern California. Paul ing adoption of the redwoods debt-for-nature By October 1991, the bank regulators deter- Springfield, an FDIC investigator, docu- scheme. mined that there was no ‘‘intentional fraud, mented a conversation he had with DeHenzel 1994: Undisclosed Congressional Meetings Lob- gross negligence, or pattern of self-dealing’’ that day (Friday, November 19, 1993) about bying on the Redwoods ‘‘Debt-For-Nature’’ related to officer, director or other profes- the call from Bob Close. Mr. Springfield Plan sional liability issues related to the failure verified that the FDIC lawyer, Mr. DeHenzel, By February 2, 1994, the FDIC attorneys of USAT (Document B, page 7). They also de- was familiar with a Hurwitz connection to knew the weakness of several of its net termined that there was ‘‘no direct evidence forest property: ‘‘He [DeHenzel] had some worth maintenance claims and it acknowl- of insider trading, stock manipulation, or knowledge of the nature of the inquiry [by edged that it ‘‘can point to no evidence theft of corporate opportunity by the officers Mr. Close] as well as the attorney Bill showing that either UFG or Hurwitz signed a and directors of USAT.’’ (Document B, page Bertain disclosed by Close. DeHenzel stated net worth maintenance agreement’’ (Record 7). They also determined that there was ‘‘no that this group was involved in fighting a 5, page 6). They acknowledged the weakness direct evidence of insider trading, stock ma- takeover action of some company by Hurwitz in a status memo (Record 5). nipulation, or theft of corporate opportunity involving forest property in the north- As a result, the FDIC teamed up with the by the officers and directors of USAT.’’ (Doc- western United States. Apparently they are OTS to have OTS attempt to construct an ument B, page 14). Bank regulators said that trying to obtain information to utilize in ‘‘administrative’’ net worth maintenance the USAT ‘‘directors’ motivation was main- their efforts.’’ (Record 1). claim against Mr. Hurwitz and his company tenance of the institution in compliance Then on November 24, 1993, Mr. DeHenzel, that owned the redwoods. They believed (but with the capitalization requirements and not faxed a November 22, 1993, memo he received offered no proof that) ‘‘the actual operating self gain or violation of their duty of loy- on November 22, 1993, from the radical group control of [MCO, FDC, and UFG] was exer- alty.’’ (Document B, page 17). There being no Earth First! to another FDIC staff member. cised by Charles Hurwitz.’’ (Record 5, page 9). wrongful conduct, bank regulators concluded That memo laid out the ‘‘direct connection In short, FDIC did not have a claim, but the that they had no valid basis to pursue bank- between the Savings and Loans, the FDIC OTS may be able to bring an action in an ad- ing claims against the owners of USAT to re- and the clearcutting of California’s ancient ministrative forum that was much more con- cover money for its failure. redwoods.’’ (Document E). The memo intro- ductive to bank regulators, so the FDIC In spite of the determination that there duced the concept that the USAT ‘‘debt’’ would hire the OTS. was no basis to file a claim regarding USAT, (which were only potential claims that FDIC The net worth maintenance claim was im- a determination that was unknown to Mr. internal analysis had already concluded had portant because if it could be established on Hurwitz or the other potential defendants at no basis) should be traded for Pacific Lumber the facts (i.e., if Mr. Hurwitz owned 25 per- the time, the banking regulators and Company redwoods. An excerpt of the memo cent of USAT or he was somehow in control

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00080 Fmt 0666 Sfmt 0634 E:\CR\FM\A20DE8.183 pfrm07 PsN: E20PT1 December 20, 2001 CONGRESSIONAL RECORD — Extensions of Remarks E2419 of USAT) it could mean he would be liable to enforce this, [referring to the net worth for-nature scheme well before Mr. Hurwitz for that percentage of the USAT loss, which maintenance agreement.’’ Thomas then said, raised redwoods with bank regulators. totaled $1.6 billion. In that way the bank ‘‘we can’t find signed agreement [between] The contents of the meeting shows irre- regulators could conceivably get into Mr. FSLIC [and USAT/Hurwitz]. We never found sponsible ends-driven government, from al- Hurwitz’s assets, including his holding com- the agreement.’’ (Record 2A) Thomas was ab- most any perspective. Mr. Smith was not pany assets which included the redwoods. solutely correct—because there never was a even talking about investigating and bring- However, in written correspondence and at net worth maintenance agreement signed by ing valid legitimate bank claims. He was the Task Force hearing on December 12, Mr. Hurwitz. only talking about ‘‘convincing’’ Mr. 2000—the FDIC and the OTS denied that the Besides the highly irregular nature of any Hurwitz that ‘‘we have claims.’’ This may litigation concerning USAT and Mr. Hurwitz communication between the FDIC and any- even be unethical, because he implied that had anything to do with redwoods. They also one about a case under investigation this an invalid, unviable claims (the net worth denied that their discovery tactics were im- communication is incredible for two reasons. maintenance claim) may be used as leverage proper or for the purpose of ‘‘harassment.’’ First, it shows the willful manner in which to get redwoods from Mr. Hurwitz. One exchange at the hearing between Mr. FDIC volunteered to get involved in a polit- The FDIC is supposed to be an ‘‘inde- Kroener, the FDIC’s General Counsel and ical issue and mix potential claims with the pendent agency,’’ that is, it is supposed to Chairman Doolittle, however, typifies the re- redwoods issue. The meeting notes prove insulate itself from political pressure and sponse to the question of whether the bank that the FDIC lawyers actually secretly disputes. FDIC legal staff suddenly injected regulators’ litigation had anything to do briefed a Congressman about the specifics of themselves into a political issue of emerging with redwoods or leveraging redwoods: an ongoing investigation that would become national prominence (redwood trees and mixed with a political issue. debt-for-nature using banking claims), an Mr. DOOLITTLE. . . . Did this litigation Second, the timing of the Congressional issue beyond the normalcy of banking recov- or discovery tactic [harassment through dis- strategy session was eighteen months before ery actions. The meeting notes show that covery] have anything to do with redwoods the FDIC board had not even approved filing the FDIC attorneys engaged to promote the or the desire to create a legal claim to lever- a claim against Mr. Hurwitz—and its lawyers issue of a debt-for-nature swap, and that the age redwoods? were then discussing the specifics their in- design was to merely ‘‘convince the other Mr. KROENER. It did not. . . . vestigation of a potential claim in the con- side’’ that the FDIC had claims worth $400 (Hearing Transcript, page 99) text of the scheme that would use the poten- million that the agency knew it did not While they have publicly denied any link- tial claim to obtain redwood trees. The high- have. This is a sad, sad statement from an age, their own written words show the oppo- ly irregular nature of this early meeting in- ‘‘independent’’ government agency, and it is site. There was indeed a scheme involving jected a political dynamic to a case still only the early part of the slide for the FDIC. politicizing bank claims against Mr. under investigation. This was obvious to Buttress what the FDIC lawyers said in the Hurwitz. Mr. Kroener’s answer and the re- former FDIC Chairman Bill Isaac. He testi- February 1994 meeting to Rep. Hamburg peated denials of a linkage is purely wrong. fied to the Task Force that the—‘‘discus- about trees and claims, against what Mr. A superb example of just how wrong Mr. sions that occurred between FDIC staff and Kroener and the other bank regulators told Kroener’s answer was is contained in the pre- people outside the Agency prior to and dur- the Task Force in sworn testimony. viously unreleased meeting notes from a ing litigation were inappropriate. The fact Mr. POMBO. Ms. Seidman and Ms. Tanoue, February 3, 1994, meeting between FDIC that those discussions occurred exposes the the FDIC and the OTS have repeatedly said legal and Congressional staff and a U.S. Con- FDIC and the OTS to the charge that the to the public and the Congress, including gressman. The redwoods debt-for-nature motivation for their litigation was to pres- this morning, that what the agency wanted linkage was the point of the meeting. sure Charles Hurwitz and Maxxam to give up from USAT claims was cash, is that correct? The high ranking FDIC lawyers working their private property, the redwood trees Ms. SEIDMAN. Yes. Our restitution claim on the redwoods case—Mr. Jack Smith, FDIC owned by Pacific Lumber.... [T]heir re- is brought for cash. As to any further discus- Deputy General Counsel, and Mr. John peated contacts with parties with whom they sions both relating to the decision to bring Thomas—and a Rep. Dan Hamburg met on have no business discussing this litigation, the claim that way and subsequent settle- February 3, 1994, to discuss to potential congressional and administrative officials ment discussions, none of which I took part banking claims targeting Mr. Hurwitz. and environmental groups, leaves them open in, I would defer to Ms. Buck. (Record 2A). to whatever negative conclusions one might Ms. TANOUE. I will also say that the FDIC The fact that the meeting occurred at all— care to draw.’’ (Hearing Transcript, pages 15– considered all options to settle claims, at the especially that it occurred eighteen months 16). encouragement of Mr. Hurwitz and his rep- prior to the USAT claim being authorized or Mr. Isaac noted the impropriety later resentative agency, looked at trees, but the filed—and the notes from the meeting evince again in the hearing. ‘‘—that really would preference has always been for cash.... that leverage for redwoods was promoted by have shocked me as chairman to see the At a minimum, Ms. Tanoue is misleading. FDIC lawyers. The notes also show that the FDIC staff having meetings with people out- Eighteen months prior to even having a FDIC knew claims targeting Hurwitz were side the Agency about the redwood trees, and claim to settle or having a claim authorized invalid and probably could not be used as le- . . . congressional officials about a possible or having a claim filed, her agency’s top law- verage (Record 2A). Highlights of the litigation we’re thinking about bringing in- yers were sitting in a Congressional office Spittler (Record 2A, page ES 0509) meeting volving redwood trees; you know, somehow talking about ‘‘convincing the other side’’ notes are as follows: tying these redwood trees into it, and get- that ‘‘we have claims worth $400 million’’ Rep. Hamburg had ‘‘an immediate interest ting that mixed up in our decision as to and getting ‘‘hook’’ into a holding company in the case,’’ probably because he had a bill whether to bring a suit over the failure of a that owns redwoods. pending to purchase the Headwaters, and the bank.’’ (Hearing Transcript, page 44–45). Mr. POMBO. At what point did you start proposal from environmentalists in his dis- The content of the meeting between Ham- looking at the other options, and you men- trict to swap the Hurwitz banking claim burg, Smith (as opposed to the fact that the tion trees? ‘‘debt’’ for redwoods had been generally meeting even occurred), is even more appall- Ms. TANOUE. Much of this discussion oc- floated. (Record 8A, The Humboldt Beacon, ing considering Jack Smith’s next comment. curred before my tenure. I turn to Mr. Thursday, August 26, 1993, Earth First! According to Spittler’s notes, he said ‘‘If we Kroener for elaboration on that point. Wants 98,000; 4,500 Acres Tops, PL Says.) can convince the other side [Hurwitz] that Mr. KROENER. . . . We were first offered According to Spittler’s notes, which are we have claim[s] worth $400 million & they trees or natural resources assets by rep- (Record 2A), Rep. Hamburg said he was ‘‘in- want to settle, could be a hook into the hold- resentatives of Mr. Hurwitz indirectly in terested enough over potential filing of the ing company.’’ Of course, the ‘‘convincing’’ July of 1995. complaint to ask what is about to proceed.’’ about valid claims was the leverage, and the There had obviously been a huge public de- And Hamburg [r]ealized that this possible ‘‘hook’’ into the holding company was get- bate going on regarding this forest. We were avenue would be lost.’’ The ‘‘avenue’’ he was ting company assets, including redwood not part of that but we had lots of commu- referring to was applying leverage against trees. This was redwoods debt-for-nature. nications, other got lots of communications, Mr. Hurwitz for a redwoods debt-for nature FDIC was part of the redwoods scheme. . . . [and our chairman and general counsel] swap, and Jack Smith obviously understood Not only does this show that the idea had responded to inquiries of Congress that this. According to Spittler’s notes, Smith re- about debt-for-nature was real to the FDIC were mindful that trees could come into play plied, it is ‘‘very difficult to do a swap for lawyers, it shows when they promoted it at in our claims, but our claims didn’t involve trees,’’ which means Smith knew that the a congressional meeting in February 1994, trees; they involved cash. (Hearing Tran- authority of the FDIC to recover restitution more than 18 months before the FDIC law- script, pages 63–65) in trees was difficult or impossible. suit against Hurwitz was even authorized by Obviously their claims involved cash, be- Smith then told Hamburg about the USAT the board and 17 months before, according to cause by law their mission is to replenish the investigation: ‘‘The investigation has looked Mr. Kroener’s testimony, Mr. Hurwitz ‘‘indi- insurance fund with money. Mr. Kroener was at several areas. [One c]laim [is] on the net rectly’’ raised the debt-for-nature swap with wrong when he said their claims did not in- worth maintenance agreements.’’ (Record the FDIC through the Department of the In- volve trees, and trees certainly came into 2A) The other FDIC attorney present, Mr. terior. Contrary to Mr. Kroener’s representa- play as evidenced by the February 1994 the e John Thomas, acknowledged the fatal flaw of tions to the Task Force, the FDIC legal staff Rep. Hamburg-Smith-Thomas meeting. In- FDIC’s claim: ‘‘[There] have been attempts was deeply ensconced in the redwoods debt- deed trees were the motivating force that led

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00081 Fmt 0666 Sfmt 0634 E:\CR\FM\A20DE8.187 pfrm07 PsN: E20PT1 E2420 CONGRESSIONAL RECORD — Extensions of Remarks December 20, 2001 the FDIC to promote net worth maintenance that the FDIC knew its claim was weak and was about the selection of an outside law claims to the OTS. it led almost immediately to the FDIC hiring firm to act as counsel on the USAT matter: The clear implications of Ms. Tanoue’s an- the OTS to promote the net worth mainte- ‘‘Jack, I thought about over conversation swer is that Mr. Hurwitz was the first to nance claim against Mr. Hurwitz. yesterday. My advice from a political per- bring the redwoods into a possible settle- This letter was sent three months prior to spective is that the ‘‘C’’ firm [Cravath] is ment, but we know that FDIC lawyers were FDIC hiring OTS to pursue the net worth still politically risky. We would catch less scheming in February 1994 with a Member of maintenance claim that FDIC knew it did political heat from another firm, perhaps one Congress to get a banking claim ‘‘hook’’ into not have. Importantly, it was sent imme- with some environmental connections. Other- the redwoods holding company owned by Mr. diately after the Rep. Hamburg meeting—the wise, they might not criticize the deal but Hurwitz. Mr. Hurwitz was not the one who meeting that tied Mr. Hurwitz’s holding they might argue that the firm [Cravath] al- first brought the redwoods into banking company’s redwood trees to the USAT net ready got $100 million and we should spread claim issue—the environmental groups, worth maintenance claim against Mr. it around more.’’ (emphasis supplied) (Docu- FDIC lawyers, and certain Members of Con- Hurwitz. The FDIC prompted and then paid ment I) gress had already done so by that point. the OTS to pursue this claim by supposedly Indeed, ‘‘environmental connections’’ were Perhaps Mr. Kroener did not read the using its independent statutory authority. a factor in selection of the outside counsel meeting notes that he provided to the Task In effect, the FDIC scheme beginning at for the USAT matter. A February 14, 1994, Force about the February 1994 meeting be- least in February 1994, polluted the OTS ac- memo about ‘‘Retention of Outside Counsel’’ tween FDIC lawyers and Rep. Hamburg when tion. What was a ‘‘hook’’ into the ‘‘holding for the USAT matter (Record 15) from var- he told the Task Force that FDIC claims did company’’ that owned the redwoods for ious FDIC lawyers to Douglas Jones, FDIC’s not involve trees until July 1995 when Mr. FDIC, was a ‘‘hook’’ into the holding com- acting General Counsel, trumpets the ability Hurwitz raised the redwoods to the FDIC in- pany for the OTS. In fact, without the FDIC of the firm ultimately selected, Hopkins & directly through the Department of the Inte- money (which by 1995 totaled $529,452 and by Sutter, to handle a redwood debt-for-nature rior. The claims did involve trees—con- 2000 totaled $3,002,825), OTS’s five lawyers settlement: ‘‘The firm [Hopkins & Sutter] vincing the ‘‘other side’’ that there is a $400 and six paralegals advancing the claims has a proven record handling high profile million claim and they may ‘‘want to set- against Mr. Hurwitz would have been un- litigation on behalf of the [FDIC] and, draw- tle,’’ which gets the FDIC into the Hurwitz funded—and probably not advanced the ing on its extensive representation of the holding company that has the redwood trees. claim. And without the net worth mainte- lumber industry, will be able to cover all as- As to Ms. Seidman, she stated a fact—that nance claim—by far the largest claim—there pects of any potentially unique debt for red- the OTS claim was for cash, which is tech- would be no hook into Mr. Hurwitz, therefore woods settlement arrangements.’’ (Record 15, nically all that it could be for. What she no hook into his redwoods. page 8). omits is that the FDIC had imparted the red- It is helpful to understand why Mr. Smith The FDIC was clearly planning—even in woods debt-for-nature agenda directly to the told Rep. Hamburg that it is ‘‘very difficult February 1994 with the selection of an out- OTS on the heals of the February 3, 1994, to do a swap for trees.’’ It was very difficult side counsel—for a redwoods debt-for-nature meeting between FDIC and Rep. Hamburg— for two reasons. First, the claims would not swap as part of a settlement! This was before and the FDIC did so because its claims were ordinarily be brought because they would they even knew if their potential claims too weak and too small to provide enough le- fail on the merits, so it would be difficult to were really claims, and before the FDIC verage for the redwoods (See, Record 33, exchange a claim that would not have been Board had authorized filing of any claims. Record 35 and accompanying discussion ordinarily brought. The bank regulators From the FDIC’s perspective, an outside infra). manual explains their policies from 1980 counsel law firm with ‘‘environmental con- It took less than 24 hours following the through 1994 for bringing claims as follows: nections’’ that can ‘‘cover all aspects of any FDIC-Rep. Hamburg meeting for the FDIC ‘‘No claim is pursued by the FDIC unless if potentially unique debt for redwoods settle- Deputy General Counsel, Jack Smith, to write to Carolyn Lieberman (now Carolyn meets both requirements of a two-part test. ment’’ is the only choice. (Record 15). So in February 1994, the FDIC—which de- Buck), the top lawyer at OTS. (Record 6). First, the claim must be sound on its merits, nies to this day its litigation against Mr. The letter (1) forwarded legal analysis of the and the receiver must be more than likely to Hurwitz has any linkage to a redwoods debt- net worth maintenance claim against the succeed in any litigation necessary to collect for-nature scheme—selected the outside Hurwitz’s holding company that owned the on the claim. Second, it must be probable counsel for the USAT matter because it redwoods; (2) admitted that FDIC had no net that any necessary litigation will be cost-ef- could handle a debt for redwoods settlement. worth maintenance claim; (3) prodded OTS fective, considering liability insurance cov- This firm was an ideal choice for a bank reg- to review whether it could administratively erage and personal assets held by defend- bring a net worth maintenance claim; and (4) ants.’’ (Managing the Crisis: The FDIC and ulator with an agenda to get a ‘‘hook’’ into in an incredible admission of purpose and in- the RTC Experience 1980–94, published by a holding company that has redwood tree as- tent, the letter notified OTS about the red- FDIC, August 1998, page 266) sets that might be traded for bank claims— woods debt-for-nature scheme. The last para- Second, the claims would be for restitu- if they can ‘‘convince’’ the other side that graph of the one page letter reads: ‘‘You tion, and the FDIC could not accept trees in they have valid claims. Mr. Hurwitz’s red- should be aware that this case has attracted settlement. The FDIC even admits that they wood trees were targeted a year and a half public attention because of the involvement would need ‘‘modest’’ legislation to accept before the bank claims were authorized to be of Charles Hurwitz, and environmental trees, which is an admission that their pur- filed and seventeen months before he sup- groups have suggested that possible claims pose in seeking redwoods is indeed unauthor- posedly raised the issue of redwoods ‘‘first’’ against Mr. Hurwitz should be traded for ized. with the FDIC. 44,000 acres of North West timber land owned However, it was political pressure, such as The FDIC, its lawyers and acting chairman by Pacific Lumber, a subsidiary of Maxxam. that applied by environmental groups in 1993 knew of the linkage between bank claims Chairman Gonzales has inquired about the and Rep. Hamburg beginning in 1994, that led and redwoods, as did their outside counsel, matter and we have advised him we would the willing FDIC (and ultimately its agent, Hopkins & Sutter, which even facilitated nu- make a decision by this May. After you have the OTS, after FDIC began paying OTS in merous contacts, information exchanges, reviewed these papers, please call me or Pat May 1994) into ignoring the mission of recov- strategy sessions, and meetings during the Bak (736–0664) to discuss the next step and to ering money on cost effective banking remainder of 1994 between the bank regu- arrange coordination with our professional claims. lators and environmentalist proponents of a liability claims.’’ (Record 6) Instead the FDIC adopted unauthorized Hurwitz debt-for-nature redwoods swap. Clearly, this action, immediately after the missions of providing leverage through law- But Ms. Tanoue and Mr. Kroener testified FDIC strategy meeting with Rep. Hamburg suits that are unsound on the merits and that redwoods had nothing to do with the constitutes direct engagement of the FDIC would ‘‘convince’’ (the word used by Mr. litigation, hardly an accurate proposition in to promote the claim that would become the Smith) Mr. Hurwitz that FDIC had a claim of light of the fact that the FDIC’s outside leverage for the redwood debt-for-nature ‘‘$400 milllion’’ so that they could get a counsel was selected because of their envi- scheme. ‘‘hook into the holding company’’ and settle ronmental connections and ability to handle It is worth stressing that the FDIC that the claim for redwood trees. This was exer- a ‘‘unique debt for redwoods settlement.’’ wrote this letter on the heals of the Rep. cise of leverage pure and simple. (Record 15) Hamburg meeting is the same FDIC that tes- February 2 through 4, 1994, were important Indeed, Hopkins & Sutter’s ‘‘environ- tified to the Task Force that their litigation redwoods debt-for-nature days for the FDIC’s mental connections’’ paid off—to the envi- did not have anything to do with trees. How legal team. There was the FDIC memo ad- ronmentalists advocating a redwoods debt- could it not when the FDIC told the OTS mitting that it had no net worth mainte- for-nature scheme. F. Thomas Hecht, the that it promised Rep. Gonzalez that the nance claim. Then there was the meeting lead partner at Hopkins & Sutter on the agency ‘‘would advise him of its decision’’ with Rep. Hamburg about the redwoods USAT matter, in a memo copied to FDIC at- about an environmental group suggestion scheme. Then there was an odd, but reveal- torney’s summarized the ‘‘intense lobbying ‘‘that possible claims against Mr. Hurwitz ing e mail sent by FDIC’s congressional liai- effort [beginning in about March 1994] by cer- should be traded for 44,000 acres of North son, Eric Spittler, to Jack Smith on Feb- tain environmental activists led by the Rose West timber land owned by Pacific Lumber.’’ ruary 4, 1994, about a conversation he had Foundation of Oakland, California[, whose] This is debt for nature. It was real in Feb- with Smith on February 3, 1994, the same day principal concern has been to conserve an ruary 1994. It ultimately overrode the fact as the Rep. Hamburg meeting. The message area of unprotected old-growth redwoods in

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00082 Fmt 0666 Sfmt 0634 E:\CR\FM\A20DE8.192 pfrm07 PsN: E20PT1 December 20, 2001 CONGRESSIONAL RECORD — Extensions of Remarks E2421 northern California known as the Head- DOI and the White House engaged with the minating candor, the handwritten memo ar- waters Forest.’’ (Document N, page 1) bank regulators. They swallowed the red- ticulates why the FDIC lawyers wanted to The memo (Document N, page 3–4) details woods debt-for-nature scheme—hook, line, hire the OTS and double team Mr. Hurwitz: the following contacts: and sinker (as the old saying goes)—begin- ‘‘Why? (1) Tactically, combining FDIC & ‘‘On June 17, 1994, Thomas Hecht met with ning in 1994 and continuing into 1995, even OTS’ claims—if they all stand scrutiny—is Jill Ratner of the Rose Foundation in San though their own analysis showed that their more likely to produce a large recovery/the Francisco for an initial meeting at which potential claims would not stand. trees than is a piecemeal approach.’’ (Record Ms. Ratner outlined her groups’ concerns. In spite of these facts, the FDIC has con- 10, bates number JT 000145) ‘‘On October 4, 1994, Hecht, Jeffrey Wil- sistently insisted since late 1993 that ‘‘there So, the senior FDIC lawyer, Mr. John liams, Robert DeHenzel and the Rose Foun- is no direct relationship between USAT and Thomas, contemporaneously wrote that dation and its lawyer participated in a tele- the Headwaters Forest currently owned by their strategy with OTS would be more like- conference at which the claims prepared by Pacific Lumber Company . . . [however], if ly to produce ‘‘the trees.’’ But their Chair- the Rose Foundation were presented in more such a swap became an option, the FDIC man, their General Counsel, and the OTS Di- detail. would consider it as one alternative . . . ’’ rector repeatedly told the committee that ‘‘On January 20, 1995, Dehenzel and Hecht (Record 28). Indeed, this is exactly what the the litigation had nothing to do with trees. met with Julia Levin of the Natural Heritage banking regulators have told the Committee Were the FDIC and OTS management and Foundation (‘‘NHF’’), a group closely associ- in writing: they have always been open to their board members so ill-informed about ated with the Rose Foundation. The NHF is the idea, but they prefer cash. The docu- what their attorneys were seeking to conducting much of the lobbying effort on mentation outlined above shows that the achieve? ‘‘The trees’’ is not cash, period. behalf of the Rose Foundation and other en- banking regulators actively pursued a red- The other very alarming notion is how in- vironmental activists on this issue. woods debt-for-nature agenda using their tegral OTS is to the strategy to ‘‘produce’’ ‘‘In addition to these more formal encoun- claims as urged by certain Members of Con- ‘‘the trees,’’ according to the FDIC attor- ters, Williams, DeHenzel and Hecht have gress and by environmental groups. However, neys. The strategy to ‘‘combine’’ FDIC’s each been contacted repeatedly by the Rose by this point, the Department of the Interior weak claims with possible OTS claims on net Foundation and its attorneys to explore the and the White House had yet to engage. That worth maintenance further explains the Feb- theories in more depth and to urge the FDIC changed in early of 1995. ruary 4, 1994, letter from FDIC’s lawyers to to take action. In each of these meetings and In February 1995, a host of environmental- OTS’s lawyers (Record 6). ists proposed an acquisition of the Head- in subsequent telephone conversations and It transmitted the net worth maintenance waters redwood trees to President Clinton, correspondence, the Rose Foundation and its claim to the OTS and introduced the notion and Leon Penetta (Chief of Staff) wrote back allies have urged three general approaches to that the FDIC was considering a redwoods to them saying that budget constraints the problem including: (a) the imposition of debt-for-nature swap scheme. The FDIC told would not permit outright acquisition a constructive trust over Pacific Lumber’s OTS that they were about to report to Rep. (Record 16A). He suggested that they push a redwoods, (b) the seizure of redwoods using Gonzalez about the potential for the swap. debt-for-nature swap or land exchange in- an unjust enrichment theory, and (c) obtain- The implication was that viable claims stead. That action served to lower expecta- ing rights to the forest or, at a minimum, an against Mr. Hurwitz (brought directly by the tions for appropriated funds for the red- environmental easement, as part of a nego- FDIC or indirectly through the OTS) would woods, and focused the proponents on con- tiated settlement. They have also urged Con- allow the FDIC to report back to Mr. Gon- tinuing to push the redwoods debt-for-nature gressional action, filed a Qui Tam proceeding zalez that they could help get ‘‘the trees’’ be- scheme. in the Northern District of California and cause a swap would be more viable. Without threatened the FDIC with proceedings under By April 3, 1995, FDIC lawyers were openly attempting to leverage Mr. Hurwitz into set- the OTS, the FDIC would not have enough the Endangered Species Act.’’ (Document N, leverage to produce ‘‘the trees,’’ because by page 3–4) tling claims that were still yet to be filed for redwood trees. The redwoods debt-for-nature its own analysis, the FDIC claims were los- This is just a sampling of the many in- ers. stances where the bank regulators own notes scheme was alive and active at the FDIC as indicated by the words in this e mail to Mr. The repeated intra-government lobbying of and memos show integration between what FDIC and OTS also pushed the bank regu- were still possible bank claims and the red- Jack Smith from Mr. Bob DeHenzel: ‘‘Jack: Just a note regarding our brief discussion on lators into the political redwoods debt-for- woods. All of these occurred beginning 18 nature acquisition scheme. This intra-gov- months before the USAT claims against Mr. Charles Hurwitz and exploring creative op- tions that may induce a settlement involv- ernment lobbying began indirectly by at Hurwitz were authorized or filed. Record 8 least May 19, 1995, and is first evidenced by contains several examples of outside con- ing the sequoia redwoods in the FDIC/OTS case: . . .’’ (Record 9) notes (Record 11) from a phone call by Ms. tacts between bank regulators and environ- Jill Ratner, who runs the Rose Foundation mental groups about different mechanisms In these words the FDIC’s attorneys were indeed leveraging redwoods by sing their to Mr. Robert DeHenzel. (Record 11 is a copy to leverage redwoods using potential bank- of Mr. DeHenzel’s notes from that conversa- ing claims. banking claims—at least three months be- fore FDIC says that Mr. Hurwitz raised the tion.) 1995: The Federal Government Is Defined— redwoods-debt-for nature idea through his The notes (Record 11) indicate that Ms. ‘‘High Profile Damages Case’’ In Which Red- ‘‘representative agency’’ (presumably the Ratner told Mr. DeHenzel about the Depart- woods Are ‘‘A Bargaining Chip’’ DOI), attorneys, four months before the ment of the Interior (DOI) players who are The relationship between the possible FDIC board authorized the suit against Mr. ‘‘very interested in debt-for-nature swap’’: banking claims and the redwoods is not just Hurwitz, and about five months before the Mr. Alan McReynolds, a Special Assistant to implied by the number of meetings or the ex- FDIC maintains Mr. Hurwitz raised the red- the Secretary of the DOI, Mr. Jeff Webb, tensive evaluations by bank regulators and woods swap idea directly with the bank regu- with DOI congressional relations, Mr. George their lawyers throughout 1994, it was di- lators. Frampton, the Assistant Secretary for Fish rectly stated in the March 1995 memo by F. Thus, well before the notion of the red- and Wildlife and Parks at DOI, and Mr. Jay Thomas Hecht, FDIC’s outside counsel: ‘‘As woods debt-for-nature deal was introduced to Ziegler, an assistant to Mr. Frampton were their theories have become subject to criti- the FDIC by Mr. Hurwitz (as the bank regu- all discussed as redwoods debt-for-nature ad- cisms, certain counsel for the Rose Founda- lators religiously maintain) the bank regu- vocates. And Record 11A illustrates that the tion have shifted (at least in part) from argu- lators were indeed targeting Mr. Hurwitz’s Rose Foundation had done substantial work ment compelling the seizure of the redwoods redwoods and using their potential claims as regarding various mechanisms to transfer to urging the development of an aggressive leverage to ‘‘induce’’ a settlement. The re- the redwoods to the federal government. and high profile damages case in which red- peated statements and the sworn testimony The notes indicate that Mr. McReynolds woods become a bargaining chip in negoti- of Ms. Seidman, Ms. Tanoue, and Mr. had flown over Headwaters during the week ating a resolution. This, indeed, may be the Kroener to the Task Force (the Mr. Hurwitz of May 8, 1995, with Ms. Ratner a primary ad- best option available to the environmental introduced the redwoods into settlement dis- vocate of various plans to acquire the Head- groups; its greatest strength is that it does cussions) is yet another example that di- waters forest. This was the first indication not depend on difficult seizure theories. This rectly contradicts what the FDIC lawyers that DOI was engaging on the redwoods debt- approach would require that both the FDIC were doing as evidenced by their own writ- for-nature scheme and probably Mr. and OTS undertake to make the redwoods ing. McReynolds’ first exposure to the concept part of any settlement package.’’ (footnote The notes of FDIC attorneys about what that bank claims could provide the leverage not in original) (Document N, page 8) they were seeking and why the FDIC and the for the redwoods scheme. There is no men- Thus, the FDIC’s outside counsel explained OTS were cooperating also contradict the tion in the notes that Mr. Hurwitz requested and evaluated the best course of action for testimony of the bank regulators when they DOI to raise the issue of a redwoods swap or the environmental groups (never mind the say that redwoods had nothing to do with look into it: ‘‘Interior is . . . discussions will FDIC or the government). The fact is that a the litigation against Mr. Hurwitz. Some- continue. Webb & Zeigler will continue doing high profile damage claim where redwoods time in mid-1994 (but before July 20, 1994), prelim[inary] work to explore whether debt- were leveraged from Mr. Hurwitz—the envi- FDIC wished to continue studying their for-nature would work.’’ (Record 11) ronmentalist’s best option—is exactly how claim and ‘‘a possible capital maintenance By the time that the DOI engaged in May the FDIC proceeded, particularly after the claim by OTS against Maxxam.’’ In illu- 1995, the FDIC lawyers were well aware of

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00083 Fmt 0666 Sfmt 0634 E:\CR\FM\A20DE8.196 pfrm07 PsN: E20PT1 E2422 CONGRESSIONAL RECORD — Extensions of Remarks December 20, 2001 the ‘‘ ‘debt-for-nature’ transaction that var- The following day, DeHenzel consulted If suit against Hurwitz—we sue only him ious environmental groups have been advo- about the McReynolds inquiry with ‘‘JVT,’’ and not others. cating to resolve the claims involving John V. Thomas, the same FDIC lawyer who Find out if Hurwitz will toll Hurwitz and USAT.’’ (Record 12) They were attended the Rep. Hamburg meeting in No- Write a memo on case status to GC 10 page also apparently intimidated by the environ- vember 1993. Mr. Thomas told him to talk to memo should do it! mentalists as shown by the two page FDIC Jack Smith and Alice Goodman. The notes continue tolling memo about a redwoods debt-for-nature let- say that ‘‘JVT’s reaction—Smith & Goodman sue or let them go ter to FDIC referencing the Oklahoma City should be there with us’’ (Record 16) for the If ordinary case, we do not believe there is bombing and a ‘‘call to defuse this situation’’ meeting with McReynolds. a 50% chance we will prevail therefore, we by doing a swap (Record 12). The following Then the unexpected occurred. On July 20, cannot recommend a lawsuit. excerpt of the memo shows detailed knowl- 1995, Mr. Hurwitz refused to extend the stat- McReynolds—handle same as the Hill pres- edge about the debt-for-nature scheme and a ute of limitations tolling agreement with the entation (Record 18) perceived threat of violence related to envi- FDIC (Record 17, See, footnote 1 on page 2). Clearly, the thinking coming out of the ronmentalists who had pushed the FDIC into He had last done so on March 27, 1995, and July 20, 1995, meeting was that the FDIC law- it: ‘‘As you know, the above-referenced in- that extension was to expire on July 31, 1995. yers were not ready to make a recommenda- vestigation has resulted in attracting the at- As a result, any lawsuit by FDIC regarding tion on the merits of the case. Continued tention of organizations and individuals that USAT claims against Mr. Hurwitz were re- tolling was not an option because Mr. have interests in environmental preserva- quired to be filed by August 2, 1995, just thir- Hurwitz refused to sign a tolling extension, tion. This has arisen as a result of Charles teen days later. It was just three days after so the options ‘‘sue or let them go’’ were the Hurwitz’s acquisition (through affiliates) of Mr. McReynolds contacted the FDIC for a only viable options. If it were an ordinary Pacific Lumber, a logging company in meeting about the potential FDIC and OTS case the preference at that point would be to Humbolt County, California, that owns the actions against Mr. Hurwitz that the FDIC close the case out—that is let them go. last stands of old growth, virgin redwoods. It was told that Mr. Hurwitz would not extend has been widely reported that the company FDIC lawyer, Mr. John Thomas’ later the tolling agreement. notes outlining some points for that memo has been harvesting the virgin redwoods in a The FDIC was unprepared for this action. to the General Counsel tell us why this was desperate attempt to raise cash to pay its They had enjoyed six years and eight months not the ‘‘ordinary’’ case: ‘‘[G]iven (a) visi- and its holding company’s Maxxam, Inc.’s of discovery during which they were lobbied bility—tree people, Congress & press . . . we substantial debt obligations. by outside groups and Members of Congress thought you—B[oard]d—should be advised of ‘‘The environmentalist’s issues are cen- on the completely unrelated issue of pur- tered on preserving the old growth redwoods suing the redwoods debt-for-nature swap. what we intend to do—and why—before it is through a mechanism of persuading Hurwitz However, the agency had failed to be it job too late.’’ (Record 22) to settle the government’s claims involving and cobble together enough evidence sup- What Mr. Thomas was saying is that the losses sustained on the USAT failure by, in porting a banking claim involving USAT and staff intends to close out the case, and if the part, transferring the redwood stands to the Mr. Hurwitz. They were not ready to file a FDIC board wants to do otherwise before the FDIC or other federal agency responsible for compliant or drop the case on their own voli- case is closed (administratively by the staff managing such forest lands. FDIC has re- tion, even though Mr. Hurwitz provided volu- or by virtue of the statute of limitations ceived thousands of letters urging FDIC to minous records to the agency in the dis- running), then the Board must intercede. pursue such a transaction.’’ covery process, records that defined the facts Importantly, the FDIC lawyers deviated ‘‘The environmental movement, like many and illuminated issues raised by the FDIC. from ordinary operating procedures because others, is not homogeneous and contains ex- As a result, the FDIC was facing two of the intense lobbying campaign for the red- treme elements that that have resorted to issue—the request for a meeting with the Of- woods debt-for-nature swap. Clearly, the in- civil disobedience and even criminal conduct fice of the Secretary of the DOI and the need tense lobbying effort by the environmental to further their goals. As a result of the re- to address the fact that they did not have groups, by their outside counsel, by the DOI, cent tragedy in Oklahoma City, everyone ap- the USAT case prepared after more than six by the White House, and by other federal en- pears more sensitive to the possibility that years of investigation. tities was effective! At that point the bank people can and do resort to desperate de- They addressed these issues internally in a regulators bought the redwoods scheme, but praved criminal acts. Accordingly, we take July 20, 1995, meeting between ‘‘Mr. Jack were unprepared then to totally disregard any references to such conduct, even ones Smith, JVT [John V. Thomas, FDIC lawyer], their what they knew they should do under that appear innocent, more seriously.’’ MA [Maryland Anderson, FDIC lawyer], JW their rules and guidelines, so the staff (Record 12) [Jeff Williams, FDIC lawyer], and Robert punted the issue to the board. This excerpt shows that FDIC attorneys DeHenzel.’’ (Record 18) The FDIC had already injected itself into a were (1) probably somewhat intimidated and It is clear from this meeting that the FDIC political issue. Their dilemma was summed (2) already well-versed in the debt-for-nature lawyers were not anxious to recommend a up by Mr. Thomas in notes preparing for a scheme when Ms. Ratner told Mr. DeHenzel lawsuit against Hurwitz. They did not have a discussion on the USAT claims with the who the DOI players supporting the redwoods case, because it did not meet their internal board apparently scribed a few days later: debt-for-nature scheme were. The FDIC was standards. Instead they preferred to hinge Dilemma (why they [the FDIC Board] get keen to the motivations and methods of their action on whether OTS brought the ad- those who fed the scheme to them. Perhaps paid the big bucks)—take: ministrative action, the action that they Hit for dismissed suit the intimate knowledge by the FDIC of the prompted and paid OTS to bring against interests and desires of the environmental Hit for walking based on staff analysis of Hurwitz. This is an odd trigger for an agency 70% loss of most/all on S of L [statute of lim- community came through the numerous that does admits it does not have a case, dis- pieces of correspondence and legal memos itations] avows it seeks redwoods, and is only inter- (Record 23) from the Rose Foundation to the FDIC ested in receiving ‘‘cash.’’ through Hopkins & Sutter. The material Thus, the FDIC lawyers’ behavior is some- The action by the FDIC of treating this showing the constant pummeling of FDIC by what schizophrenic—on the one hand they case differently than the ‘‘ordinary’’ case these advocates (and the willing acceptance know their internal policies will not let and the concerted manipulation of hiring the by the FDIC and its outside law firm with them bring a suit, but on the other had they OTS to pursue parallel claims to be used as ‘‘environmental connections’’) is too volumi- want to sue Mr. Hurwitz (and not other po- leverage sends the strong message: if some- nous to reproduce. It is contained in the tential defendants). They then begin con- one wants to influence bank regulators on an Committee’s files. structing the justification for doing so entirely collateral issue, and politically ma- With the FDIC primed, the Department of around the notion that the potential claims nipulate the bank regulators, they can suc- the Interior directly engaged with the FDIC. against Mr. Hurwitz are somehow special— cessfully do it. The first known direct contact was a 5:00 not ‘‘ordinary.’’ They also apparently talk of All that must be done to use the bank reg- p.m. call on July 17, 1995, from Alan telling Mr. McReynolds what they will do— ulators to achieve a collateral issue is to McReynolds to Robert DeHenzel. The notes evidence of further improper coordination pursue two year public relations campaign taken by DeHenzel (Record 16) indicate that with the DOI outside of normal FDIC oper- aimed at them, swamp the bank regulators McReynolds, a special assistant to the Sec- ating parameters. Mr. Thomas’ notes from with cards and letters about the collateral retary of the Interior, asked about the ‘‘sta- the internal FDIC meeting (Record 18) ex- issue, write and submit various legal briefs tus of our [FDIC] potential claims and how plain: for them that link the collateral issue, meet OTS is organized, etc.’’ He needed ‘‘someone Re: McReynolds—Kosmetsky-Hurwitz-Toll- with the bank regulators about the collat- to describe our [FDIC] claims and FDIC/OTS ing eral issue, organize congressional letters ad- roles.’’ He said that the DOI is receiving Jack [Smith]—we will not go forward if vocating the collateral issue, hold secret ‘‘calls almost daily from members of Con- OTS files a case meetings with Members of Congress bout the gress and private citizens.’’ McReynolds —if OTS does not file suit, we still have to collateral issue, hold ‘‘protest’’ rallies out- pressed for a meeting that week (the week of decide our case on the merits before tolling side of their meetings, and do whatever else July 17, 1995) because of his vacation and expires it takes so that at the end of the day, bank travel schedule. At that juncture, DeHenzel’s *Memo to the GC [General Counsel] to regulators do not follow ordinary procedures. notes say that McReynolds had not spoken Chairman—update status of case & rec- Indeed, the redwoods debt-for-nature swap to Jack Smith yet. ommends that we let Kozmetsky out. became linked to USAT and Mr. Hurwitz just

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00084 Fmt 0666 Sfmt 0634 E:\CR\FM\A20DE8.200 pfrm07 PsN: E20PT1 December 20, 2001 CONGRESSIONAL RECORD — Extensions of Remarks E2423 as the environmental groups wished. This Alan Reynolds—Adm[inistration] want to Redwood Swap— was not the ordinary case—it was going to do deal Interior/Calif. the FDIC Board even though the FDIC ad- Gov. Wilson w/DOI had task force of 6 Forest—[military] base—FDIC/OTS mitted their case had a 70 percent chance of groups claim(?) being dismissed because of the statute of Told to find a way to make it happen (Record 22) CA will trade $100m in CA [California] tim- limitations, and was more likely than not of This outline reinforces the approach and ber falling on the merits if they were reached. dilemma described by FDIC lawyers in their Apparently, the FDIC legal staff was pre- Adm[inistration] might trade mil[itary] July 20, 1995, meeting. First, there was co- pared to tell McReynolds and ‘‘the Hill’’ base ordination with the OTS claims to get red- [Congress] the same thing—their course of Had call from atty. Appraisal on prop[erty] woods. That’s because FDIC’s possible claims action described in the July 20, 1995, meeting for $500m. Said they want to make a deal. notes (Record 18). This modified procedure Don’t know how much credence we have were losers on substantive and procedural still left the door open for the board to act from them about a claim. At same time tell- (statute of limitations) grounds. Second, or- against staff recommendations and authorize ing them to get rid of claim. He can’t cut dinary procedures to close out the matter the suit anyway—something that may not them down. were circumvented due to ‘‘visibility’’ from have been ideal from Mr. McReynolds per- If we drop suit, will undercut everything. the redwoods debt-for-nature campaign of spective, but would still leave open the possi- (emphasis supplied) (Record 21) the ‘‘tree people’’ (Earth First! and the Rose bility of the leverage that DOI desired So, the FDIC knew—according to the meet- Foundation), Congress, and the press. Third, against Mr. Hurwitz. ing notes—that if the FDIC dropped the suit the Department of the Interior’s ‘‘Redwood Then something else changed on July 21, by letting the statute of limitations run, ‘‘it Swap’’ was taking shape and FDIC lawyers 1995, which was the day following the inter- will undercut everything’’ related to the red- were beginning to coordinate with DOI staff. nal FDIC meeting on their potential claims woods scheme that was just discussed with All these factors combined to override the against Mr. Hurwitz. The change caused the McReynolds. In other words, letting the stat- normal course of action, which was to close entire approach of the FDIC lawyers to ue of limitations expire—the ‘‘ordinary’’ pro- out the case. Instead, the Board would get evolve again. What changed was not any new cedure and recommendation of the FDIC law- the decision. All of this confirmed in John information about the facts of the potential yers at the time—meant the leverage for the Thomas’ own handwritten outline (Record claims against Mr. Hurwitz related to USAT. redwoods debt-for-nature deal would evapo- 22), and all of it adding up to show that the What changed was not any favorable devel- rate, as would the scheme to get Hurwitz’s redwoods debt-for-nature scheme had a real opment in law that strengthened their po- redwoods. Thus, the notes confirm a red- impact on the approach of the FDIC’s law- tential claims against Mr. Hurwitz related to woods debt-for-nature scheme and that FDIC yers. It had yet to skew the FDIC’s final USAT. What changed was not any analysis did not really know whether Mr. Hurwitz be- judgment based on early versions of the about the nature or strength of the potential lieved that the FDIC had a valid claim—fur- memo to the Chairman (Document X), but claims against Mr. Hurwitz. All of these ther evidence of the fact that the claims the final version dated July 27, 1995, would things remained the same. were indeed weak substantively and proce- reflect skewed judgment. What changed was the realization by the durally. The memo was drafted, and a version re- FDIC lawyers, as communicated by a senior In this context—where the FDIC knew its flecting Mr. Thomas’ notes and all of the DOI official, that (1) the Clinton Administra- claims (and the claims it was paying OTS to prior internal staff discussions was produced tion and the DOI, had adopted and embraced pursue) were the essential leverage for the and dated July 24, 1995. The drafts are Docu- the redwoods debt-for-nature scheme and redwoods—the FDIC lawyers began drafting ment X, and the final before the reversal is they wanted the scheme to be successful, and the memo. Clearly, the agency was strug- Document X, pages ES 0490–0495. It contains (2) the FDIC’s potential banking claims were gling with the fact that dropping the claims an unsigned signature block. Highlights of critical to pulling off that redwoods debt-for- was inconsistent with what the DOI and the this memo are reproduced below and they nature scheme. The potential banking Administration needed to accomplish the tell exactly what the FDIC lawyers would claims—the same claims that the FDIC law- redwoods debt-for-nature swap. advise the FDIC Board: ‘‘We had hoped to yers would have dropped using ‘‘delegated The handwritten outline of Mr. John delay a final decision on this matter until authority’’—were the leverage that were Thomas (Record 22) reviewed the major after OTS decides whether to pursue claims critical to making the redwoods debt-for-na- points in the contemplated memo to the against Hurwitz, et al. However, we were ad- ture scheme work. Chairman. The outline reiterated the link- vised on July 12, 1995 that Hurwitz would not That realization occurred when the FDIC age between FDIC and OTS, and it reinforced extend our tolling agreement with him. Con- lawyers met with Mr. McReynolds on Friday, staff conclusion that the USAT claims sequently, if suit were to be brought it would July 21, 1995, at 11:00 a.m. (Record 19), just as against Mr. Hurwitz should be left to expire have to be filed by August 2, 1995. We are not he had requested on Monday, July 17, 1995. otherwise the court would dismiss them. Mr. recommending suit because there is a 70% Meeting notes indicate that background probability that most or all the FDIC cases about the redwoods and endangered species John Thomas’ outline clearly show that if this case were ‘‘ordinary’’ it would be closed. would be dismissed on statute of limitations issues associated with Mr. Hurwitz’s red- grounds. Under the circumstances the staff woods were initially discussed (Record 20). Pressure for redwoods was the justification for informing the Board of the staff’s intent would ordinarily close out the investigation Other background about Governor Wilson’s under delegated authority. However (evi- task force and the willingness of California to close out the case, and the option of pur- suing the case for purposes of leverage was denced by numerous letters from Congress- to participate in the deal were discussed, as men and environmental groups), we are ad- were Mr. Hurwitz’s valuations of the prop- therefore left open. Mr. Thomas’ outline, which appears to be composed for the 2:00 vising the Board in advance of our action in erty (Record 20). Apparently, McReynolds case there is a contrary view.’’ (emphasis laid out some of the basics about the red- p.m. briefing of the Chairman on July 26, 1995, (Record 22) is partially reproduced supplied) (Document X, page ES 0490) wood acreage. He was familiar with the issue And in discussing the merits, the memo from first hand experience because he had below— May recall briefed re OTS—[FDIC is] pay- again advised: ‘‘The effect of these recent ad- flown over the redwoods with Jill Ratner verse [court] decisions is that there is a very during the week of May 8, 1995 (See, Record ing [the OTS]—some months ago. OTS is making progress, but not ready. high probability that the FDIC’s claims will 11): ‘‘H[urwitz] values 8K [acres] at $500 m. not survive a motion to dismiss on statute of Interior wants to deal it down. H[urwitz] Thus, tolling again. OTS staff hopes to have draft notice of limitations grounds. We would also be at in- really wants $200m total. Calif. Deleg[ation] creased risks of dismissal on the merits. Be- is really putting pressure on.’’ Dallas/Ft charges to Hurwitz, et al. Aug./Sept. (Apologize for short fuse)—we thought we cause there is only a 30% chance that we can Worth—Base closure. avoid dismissal on statute of limitations The FDIC also told McReynolds about the would be able to put off a final decision until grounds, and because even if we survived a meeting that FDIC lawyers had set for the OTS acted. Hurwitz refused to toll. statute of limitations motion, victory on the following Wednesday, July 26, 1995, with the Normal matter, we would close out under OTS to discuss the USAT matter. They told delegated authority w/o [without] bringing it merits (especially on the claims most likely Mr. McReynolds about the fact that they to your Bd’s attention. to survive a statute of limitations motion) is were doing the memo to the Chairman (the However, given uncertain given the state of the law in (a) visibility—tree people, Congress & press 10 page memo they concluded they needed in Texas, we do not recommend suit on the (b) [OMITTED] their July 20, 1995, meeting amongst the FDIC’s potential claims.’’ (emphasis sup- we thought you-Bd-should be advised of plied) (Document X, page ES 0493–0494) FDIC lawyers, See Record 18). The entry re- what we intend to do—and why—before it is garding this in Record 20) is reproduced The memo then discusses the redwood for- too late. below: ‘‘Wed [July 26] 10:30 mtg w/OTS. est matter, an interesting notion given the Memo for Chairman.’’ (Record 20) *** fact that the FDIC has consistently main- Eric Spittler’s notes from the July 21, 1995, Bottom line: likely to lose on S of L [stat- tained that the redwoods were not at all con- meeting add helpful details, and they are re- ute of limitation]—let it go or have ct. dis- nected to their litigation: ‘‘The decision not produced below: miss it. to sue Hurwitz and former directors and offi- $400,000 expenses on OTS Continue to fund OTS cers of USAT is likely to attract media cov- Have not decided whether to bring case— We’d also write Congress re what & why erage and criticism from environmental won’t decide for months. rather than awaiting reaction groups and member of Congress. Hurwitz has

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00085 Fmt 0666 Sfmt 0634 E:\CR\FM\A20DE8.205 pfrm07 PsN: E20PT1 E2424 CONGRESSIONAL RECORD — Extensions of Remarks December 20, 2001 a reputation as a corporate raider, and his sion between FDIC lawyers and Mr. claim. They had spoken—they spoke to staff hostile takeover of Pacific Lumber attracted McReynolds on July 21, 1995. This puts the a few days ago about that and staff of the enormous publicity and litigation because of OTS squarely inside the redwoods debt-for- FDIC has indicated that we would be inter- his harvesting of California redwoods. Envi- nature scheme. ested in working with them to see whether ronmental interests have received consider- The notes are very helpful to show the de- something is possible. We believe that legis- able publicity in the last two years, sug- gree of coordination between the FDIC and lation would ultimately be required to gesting exchanging our D&O [director and of- OTS about redwoods and the linkage be- achieve that. But again, if it’s the Board’s ficer] claims for the redwood forest. Only tween the potential claims and redwoods. pleasure, we would at least try to find out July 21, we met with representatives of the They also show how the FDIC polluted the what’s happening and pursue that matter Department of the Interior, who informed us OTS decision-making with the same political and make sure that nothing goes on we’re that they are negotiating with Hurwitz dynamic it had been part of for more than a not aware of—we’re not part of. (Record 27, about the possibility of swapping various year. The FDIC staff summed up the situa- page 11–12) properties, plus the possibility the FDIC/OTS tion and briefed OTS about all of the impor- Later, Chairman Helfer raised the issue of claim, for the redwood forest. They stated tant redwoods developments related to Mr. whether bringing suit enhances the prospect that the Administration is seriously inter- Hurwitz: of settlement of non-banking issues, that is ested in pursuing such a settlement. This is J. Smith’ the redwoods: feasible with perhaps some new modest legis- Hurwitz won’t sign tolling agreement with lative authority . . . We plan to follow up on Chairman HELFER. . . . does the FDIC’s FDIC—need to file lawsuit by 8/12 authorization to sue enhance the prospect— these discussions with the OTS and Depart- J. Thomas-chances of success on stat. Lim- ment of [the] Interior in the coming weeks. the prospects for a settlement on a variety of itations is 30% or less issues associated with the case? . . . When the Hurwitz tolling agreement ex- will continue discussions with Helfer pires, we would recommend that we update Mr. THOMAS. It might have some mar- Pressure from California congressional del- ginal benefit, but I don’t think it would those Congressmen who have inquired about egation to proceed our investigation and make it clear that this make a large difference. I think the reality Dept. of Interior—Alan McReynolds is that the FDIC and OTS staff have worked does not end the matter of Hurwitz’s liabil- Administration interested in resolving ity for the failure of USAT because of the on- together, expect to continue to work to- case & getting Redwoods gether, and so, I don’t think it would have a going OTS investigation.’’ (Record X, pages Pete Wilson has put together a multi-agen- ES 0493–0494). major impact. It might make some dif- cy task group ference, but I think particularly any effort It is helpful to understand that there were Calif would put up $100 MM of Californai to resolve this with . . . a solution that in- four major versions of this memo drafted and timberland volves the redwoods would be extremely dif- revised. The drafts of this memo are all type- Hurwitz wants a military base between ficult. (Record 27, page 16) dated July 24, 1995, and they all reference Dallas & Fort Worth—Suitable for commer- discussions with the Department of the Inte- cial development These exchanges in the FDIC board meet- rior. These drafts are Document X, which Hurwitz also wants our cases settled as ing about the redwoods are troubling simply was made part of the Task Force hearing part of the deal because they occurred. They injected factors record by unanimous consent. Two weeks ago-Hurwitz lawyer called Teri that had nothing whatsoever to do with the However, one version of this memo con- Gordon at home & told him he should not be validity of banking claims against Mr. tains numerous handwritten changes, includ- turned off by the $500 MM appraisal Hurwitz. The advice and recommendations ing a date that was changed from July 24, What is OTS’ schedule? How comfortable is on July 27, 1995, deviated so widely from the 1995, to July 27, 1995 (Document X, pages PLS OTS w/ giving info to Interior? approach of staff that would have ordinarily 000192–000195). The changes amount to the (Record 26) taken to close the case administratively. complete and total reversal in approach to They deviated even more from the approach None of the records reviewed contains any the USAT claims related to Mr. Hurwitz. The they would have taken before the banking law rationale for the reversal in the July 27, 1995 version is the text that was in- McReynolds meeting on July 21, 1995, where staff recommendation July 24, 1995, (which corporated into the Authority to Sue (ATS) they came to understand that the Adminis- was to notify the board that they would cover Memorandum that was itself dated tration needed the leverage for the redwoods close out the potential claim against Mr. July 27, 1995. It, with the ATS memo (Docu- swap. Hurwitz by letting the statute of limitations ment L, EM 00123–00135), went to the FDIC The deviation is likely a result of that run) and the July 27, 1995, approach (which Board, and it recommended the suit against meeting, coupled with the OTS meeting on recommended a lawsuit against Mr. Mr. Hurwitz be brought. July 26, 1995, where they coordinated on the The July 27 final version rolled into the Hurwitz). The only explanation for the rever- claims they were paying the OTS to pursue ATS memo also discusses the ‘‘Pacific Lum- sal is the meeting with Mr. McReynolds and conspired about the need for leverage to ber-Redwood Forest Matter’’ (Document L, where the DOI and Administration’s desire get the redwood claims. The FDIC under- page EM 00129). Therein, it notes the July 21, for leverage was communicated and under- stood at that point that OTS’s claims may 1995, FDIC meeting with ‘‘representatives of stood by the FDIC coupled with the meeting not be brought for months (or perhaps at all) the Department of the Interior with OTS where bank regulators from both and they certainly knew that if ‘‘we drop our [McReynolds], who informed us [the FDIC] agencies discussed the Administration’s de- suit, [it] will undercut everything.’’ (Record that they are negotiating with Hurwitz sire for the redwoods debt-for-nature scheme 21) about the possibility of swapping various to succeed. At this juncture, the thinking The day following filing of the suit, FDIC properties, plus the possibility of the FDIC/ was that there would be no money for an ap- lawyers sent a memo to their communica- OTS claim, for the redwood forest.’’ (Docu- propriation for the Headwaters, so a swap of tions department reiterating the congres- ment L, page EM00129). The memo also says some sort was the only way to acquire the sional and environmental interest due to the that the ‘‘Administration is seriously inter- redwoods. redwoods issue. (Record 28) The memo ex- ested in pursuing such a settlement.’’ The FDIC board only saw the July 27, 1995, plained conspiracy with the Department of Note what the memo does not say. It does memo. In their meeting they discussed the the Interior and how the department had not say Mr. Hurwitz raised the issue of red- redwoods scheme when the discussed bring- been negotiating for the redwoods using the woods and linked them in any way to the ing the action against Mr. Hurwits (Record FDIC and OTS claims. The memo also indi- banking claims. It says that the Administra- 27). As part of his briefing, Mr. John Thomas cated that it was the Administration that tion is negotiating a swap of possible prop- elaborates on the redwood scheme to the was ‘‘seriously interested in pursuing such a erties, plus the banking claims. When the FDIC board: settlement.’’ (Record 28, page 2) In addition, bank regulators learned of this (probably Mr. THOMAS. This is, of course, a very as if the FDIC lawyers knew they were doing from Mr. McReynolds on July 21, 1995), the visible matter. It is visible for something something wrong, the memo emphasized that bank regulators should have been very un- having no direct relationship to this case, ‘‘All of our discussions with the DOI are comfortable. They had already voluntarily but having some indirect relationship. Mr. strictly confidential.’’ (Record 28, page 2) injected themselves into a political dynamic Hurwitz, through Maxxam, purchased Pacific Then the memo went on to suggest that with other government agencies—one of Lumber. Pacific Lumber owns the largest the FDIC should not disclose these discus- which had apparently taken their statutory stand of virgin redwoods in private hands in sions or deviate from the prior public state- obligation to recover cash by using claims the world, the Headwaters. That has been the ment about redwoods. Basically that state- that belonged to the FDIC and were not even subject of considering—considerable environ- ments was that if a redwood ‘‘swap became brought yet. At this juncture Mr. Hurwitz mental interest, including the picketing an option, the FDIC would consider its as had not raised the prospect of such a scheme downstairs of a year or so ago. It has been one alternative and would conscientiously with the FDIC. the subject of Congressional inquiry and strive to resolve any pertinent issued.’’ The only other intervening event between press inquiry. So we assume that whatever (Record 28, page 2) the July 24, 1995, memo draft and the July 27, we do will be visible. The work on a redwoods swap by the FDIC 1995, reversal is a meeting on July 26, 1995, at Interior, you should also be awar—aware, and the Department of Interior then grew as 10:30 a.m. between the FDIC and OTS. Record the Department of Interior is trying to put indicated by the volume of notes from meet- 26 is the only set of meeting notes from that together a deal to the headlines [sic] [Head- ings where other federal entities were drawn meeting, and the notes reiterate the discus- waters] trade property and perhaps our into the scheme. There was an August 2, 1995,

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00086 Fmt 0666 Sfmt 0634 E:\CR\FM\A20DE8.209 pfrm07 PsN: E20PT1 December 20, 2001 CONGRESSIONAL RECORD — Extensions of Remarks E2425 DOI Headwaters acquisition strategy paper his redwoods for the FDIC and OTS claims. run by us [FDIC and OTS] on everyone other drafted by Mr. McReynolds. It reports the They wanted to induce a settlement, and than Hurwitz. We have moved to stay our FDIC and the OTS ‘‘are amendable to [a debt their words say it. There meeting with the case in Houston, and are awaiting a rul- for nature swap] if the Administration sup- Vice President was an important meeting, ing....and there is question of whether a ports it.’’ (Document DOI B). This is blatant and the memo to Mr. Kroener to prepare for broad deal can be made with Pacific Lum- evidence of just how political the FDIC’s the meeting (Record 33) was remarkable can- ber.’’ (Record 36) July 27, 1995, reversal was. did: ‘‘FDIC has no direct claim against Pa- Shortly thereafter, on January 19, 1996, the There was the August 15, 1995, meeting be- cific Lumber through which it could success- fact that Mr. Hurwitz had not directly tween DOI, FDIC (Smith), and OTS (Renaldi fully obtain or seize the tree or to preserve brought the issue of the redwoods into set- and Sterns) (Document DOIC, page 2) where the Headwaters Forest.’’ tlement discussions became a problem. OTS it was reported that ‘‘FDIC and OTS are * * * * * apparently refused to join the meetings led wondering why DOI is not being more ag- by CEQ about Headwaters, and an FDIC law- ‘‘FDIC’s claims alone are not likely to be gressive with Hurwitz and is permitting yer reported the refusal to CEQ: ‘‘I advised sufficient to cause Hurwitz to offer the Head- [Governor] Wilson’s task force to take force Elizabeth Blaug about this yesterday after- waters Forest, because of their size relative to take the lead’’ (Document DOIC, page 2). noon. I said that if Hurwitz wanted to have to a recent Forest Service Appraisal of the This is a stunning indictment of the political global settlements with OTS and FDIC in- value of the Headwaters Forest ($600 mil- motivation of the FDIC and OTS staff. volved, he would have to ask for them.’’ lion); because of very substantial litigation There was coordination with Congressional (Record 36A) offices (Document DOID). risks including statute of limitations, Texas In other words, the ex parte agency discus- There was endorsement from the Assistant negligence—gross negligence business judg- sions (without Mr. Hurwitz) about FDIC and Secretary of DOI of using the FDIC and yet ment law, and Hurwitz role as a de factor di- OTS banking claims were at least improper, to be filed OTS claims in exchange for the rector, and the indirect connection noted and the impropriety was not realized; how- redwoods (Document DOIE). above, including the risk of Hurwitz facing ever, it was too late. There were multi-agency meetings that in- suit from Pacific Lumber securities holders By March 1996, the FDIC and OTS were cluded the White House OMB and CEQ (Docu- if its assets were disposed of without Pacific deeply involved with promoting the red- ment DOI F and H) Lumber being compensated by either out- The Vice President was lobbied by Jill woods debt-for-nature scheme, but they had siders, or Hurwitz or entities he controls.’’ still yet to receive any direct communica- Ratner for his support of the redwoods (record 33, page 3) (emphasis supplied) scheme as was the White House (Document tion from Mr. Hurwitz proposing a redwoods Two things are clear after reading this pas- swap for their claims. About March 3, 1996, DOI G), and bi-weekly conference calls were sage. First, FDIC staff intended the claim to occurring between the FDIC, the OTS, and the FDIC attorneys must have begun to real- operate as an inducement, along with the ize that the agency should not be involved in the DOI to coordinate on the redwoods OTS claim for trees. Second, that there is no scheme by September 1995. the redwoods scheme. He made the following other rational, after reading this evaluation, note on what appears to be a ‘‘to do’’ list: There was the October 1995, memo to the for the FDIC lawyers to have switched their General Counsel of FDIC about a scheduled recommendation between July 24 and July meeting that was to occur on October 20, 1995 27, 1995—except that they intended all along APPENDIX 1 with Vice President Gore about the FDIC to help the Administration by playing a part DOCUMENT A and OTS claims and their integral linkage to in inducing a settlement. leveraging redwoods. Mr. Kroener, testified United States District Court—Southern After reading this passage, one wonders District of Texas that the meeting never occurred, but the in- why the FDIC still attempts to propagate FEDERAL DEPOSIT INSURANCE CORPORATION formation in the memo is nonetheless illu- the obviously false notion that their claims AND OFFICE OF THRIFT SUPERVISION, PLAIN- minating, and it contradicts FDIC’s state- had nothing to do with redwoods. TIFFS. ments that they were not after redwood There was the October 22, 1995, meeting trees. that included a cast from DOI, OMB, FDIC, versus The memo verifies that Mr. Hurwitz was DOJ, and the Department of Treasury ‘‘at CHARLES P. HURWITZ, DEFENDANT. not interested and had not raised the notion which we [CEQ] initiated discussions on a po- IVIL CTION of a redwood swap for FDIC or OTS claims. C A H–95–3956 The memo says OTS met with Hurwitz’s law- tential debt-for-nature swap.’’ (Document OPINION ON DISMISSAL OF THE OFFICE OF yer and ‘‘no interest in settlement has been DOI H) That meeting led to FDIC attorney THRIFT SUPERVISION expressed to OTS.’’ (Record 33, page 2). The Jack Smith compiling a lengthy memo- 1. Introduction. memo says that FDIC ‘‘has had several meet- randum to Kathleen McGinty, the Chairman of CEQ. The memo reviews issues and an- The Federal Deposit Insurance Corporation ings and discussions with Hurwitz counsel sued Charles Hurwitz for improprieties as prior to the filing of the lawsuit. Hurwitz has swers about the feasibility of various legal mechanisms that might be used to facilitate corporate officer that led to the failure of a never, however, indicated directly to the bank Hurwitz’s corporation owned. While the FDIC a desire to negotiate a settlement of the redwoods debt-for-nature scheme. (Record 30). suit was in its preliminary stages, the FDIC the FDIC claims.’’ (Record 33, page 2). procured the Office of Thrift Supervision to This puts to rest the notion that Mr. Then in late 1995, Judge Hughes, the U.S. District Court judge who was assigned the use its powers to bring a parallel administra- Hurwitz was or had been interested (or had tive action against the officer. Over the raised) the notion of a redwoods swap for the FDIC’s lawsuit discovered what the FDIC and OTS had done to team up using overlap- OTS’s objection, this court joined the OTS as OTS or FDIC claim up to that point. Appar- an involuntary plaintiff in this suit since it ently, the FDIC relied on erroneous represen- ping authority to harass Mr. Hurwitz had decided to affect the outcome. Now, the tations of Mr. McReynolds to the contrary. (Record 37 and document A) and the banking FDIC has amended its pleadings to abandon Then, in an incredible self-indictment, the regulators’ redwood debt-for-nature scheme FDIC observes that it is ‘‘inappropriate to began to be exposed. its claims that duplicate those in the OTS’s include OTS’’ in the meeting to discuss pos- At the same time (November 28, 1995) FDIC action; although this is yet another manipu- sible settlement with Hurwitz because the lawyers met with Katie McGinty (CEQ), Eliz- lation of the court system by the FDIC, the OTS claim was not approved for filing, and abeth Blaug (CEQ), and John Girimundi OTS will be dismissed. discussions may be perceived as ‘‘an effort by (DOI) where it was decided that there would 2. Claims. the executive branch to influence OTS’s be ‘‘no formal contacts until OTS file,’’ Charles Hurwitz was a member of the independent evaluation of its investigation’’ (Record 38) and it was acknowledged that board of three different corporations that (Record 33, page 2). What exactly, then, did ‘‘after the administrative suit is filed is time had an interest in United Savings Associa- the FDIC think its February 1994 meeting for opening any discussions.’’ However, the tion of Texas. After United’s failure in 1988, with Rep. Hamburg would do to its inde- FDIC had already had several discussions the FDIC began investigating Hurwitz. Co- pendent judgment? What did the FDIC think with OTS about the redwoods swap, as had operating with the government, Hurwitz repeated contacts with environmental DOI staff beginning in July 1995, even before signed a succession of agreements to extend groups since 1993 would do? What did the the FDIC claim was filed. the deadline for the government to act. After FDIC think that its meetings with Mr. Rey- The notes from meetings between the FDIC eight years of investigation by the FDIC and nolds right before their staff recommenda- and/or the OTS and environmental groups, the OTS with no resolution in sight, Hurwitz tion changed in July 1995 would do? Why did government agencies, federal departments, declined to extend the statute of limitations the FDIC and the OTS meet and have phone the White House, from September 1995 again. The FDIC sued Hurwitz on a variety of briefings with DOI in July, August, Sep- through March 1996. (Record 31) claims arising from the operation of United. tember 1996. All of these contacts were just 1996: FDIC Lawyers Cannot Find Their Way When distilled, the claims are that as inappropriate then as they were when Out of the Forest—help, ‘‘we need an exit ∑ Hurwitz failed to maintain the net worth FDIC staff wrote the briefing memo for Vice strategy from the Redwood’’ of United, and President Gore’s meeting. Did the FDIC law- By January 6, 1996, the redwoods scheme ∑ Hurwitz mismanaged United’s mortgate- yers take an ethics class sometime between had come together as planned. John Thomas backed security portfolios. February 1994 and October 1995? reported to Jack Smith in a weekly update. Three months later, the OTS notified In fact, the FDIC intended to help the Ad- ‘‘United Savings. OTS has filed their notice Hurwitz that it intended to file an adminis- ministration force Mr. Hurwitz into trading of charges. The statute has been allowed to trative ‘‘notice of charges’’ on substantially

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00087 Fmt 0666 Sfmt 0634 E:\CR\FM\A20DE8.213 pfrm07 PsN: E20PT1 E2426 CONGRESSIONAL RECORD — Extensions of Remarks December 20, 2001 the same claims in addition to violations of tions. The same parties and the same actions a risk of duplicative proceedings. The FDIC banking regulations. The court joined the are involved. The money recouped by either has abandoned its principal case in this OTS to minimize duplicative and—as it turns agency will go to the FDIC. court. out—duplicitous proceedings and to avoid in- Hurwitz is not seeking to enjoin the OTS, Hired governments and systematic false- consistent findings about the same trans- directly or effectively, or to ‘‘affect by in- hood are the tools of cosa nostra not res actions. junction or otherwise’’ the administrative publica. 3. Joinder. proceedings. Furthermore, this is not Signed October 23, 1997, at Houston, Texas. LYNN N. HUGHES, The OTS was properly joined as a party. A Hurwitz’s suit. The FDIC initiated this ac- United States District Judge. party may be joined as an involuntary plain- tion, knowing that it had bought the initia- tiff when it claims an interest in the subject tive of the OTS. In January 1997, during a pre-hearing con- matter of the suit and its absence would DOCUMENT A2 ference with the hearing officer, the FDIC leave another party at risk of incurring mul- United States District Court—Southern and OTS stated ‘‘the bottom line’’ is that tiple or inconsistent obligations, Fed. R. District of Texas joining the OTS as a party to this suit ‘‘does Civ.P. 19(a)(2)(ii). FEDERAL DEPOSIT INSURANCE CORPORATION, The government argues that this court not affect [the administrative] proceeding.’’ The government has judicially admitted PLAINTIFF. may not join the OTS because it lacks juris- versus diction. It says that the statute creating the what it now seeks to contradict. The law does not support the government’s OTS specifically divested district courts of CHARLES E. HURWITZ, ET AL., DEFENDANT. position, and it has admitted that joining jurisdiction. The statute say that a district Civil Action H–95–3956 the OTS as a party in this case does not court may not issue an order that affects the OPINION ON PRODUCTION OF FEIC REPORT interfere with the administrative pro- administrative process. The government, 1. Introduction. ceeding. The statutory limitation, therefore, reading its protection from independent ex- does not apply to this case, and this court The Federal Deposit Insurance Corporation amination broadly, says that any action had jurisdiction to join the OTS as an invol- sued Charles Hurwitz for his acts as cor- taken by this court in this case will nec- untary plaintiff. See 12 U.S.C. § 1818. porate officer because a bank the corpora- essarily affect the OTS’s administrative pro- tion owned failed. In the pretrial discovery, 5. Amended Complaint. ceedings, making it barred. See 12 U.S.C. the agency has refused to disclose its docu- § 1818(I)(1). The FDIC has given up its case against ment authorizing the lawsuit, commonly The scope of the statutory prohibition of Hurwitz in this court and delivered it to the called an authority to sue letter. It asserts court intervention is limited to actions by OTS, getting an administrative forum in its privileges not to disclose attorney-client the court to impede the issuance or enforce- Washington and avoiding the public rigor of communications or attorney’s work pre- ment of a notice or order of the OTS; every a court of law. In all important respects, the paring the suit. The document must be dis- determination of law affects the OTS. FDIC’s original complaint and the OTS’s no- closed. The government claims more for its prece- tice of charges are the same. Both agencies 2. Background. dents than a reading of them will support. essentially make two complaints: (a) the de- Certainly, none of the cases indicates that a fendants failed to maintain the net worth of Hurwitz was a member of the board of federal court has no authority to join the a bank and (b) the bank’s mortgage-backed three different corporations with interests in OTS as an involuntary plaintiff. Compelling security portfolios were managed improp- United States Association of Texas. After the OTS to participate in a case is far dif- erly. The underlying facts of both com- United failed in 1988, the FDIC began inves- ferent from preventing it from continuing its plaints are the same. The legal determina- tigating Hurwitz. The agency asked Hurwitz own case. See Board of Governors of Federal tions in both would have been redundant. If to waive his protection under the statute of Reserve System v. MCorp Fin. Corp., 502 U.S. United stockholders owe no net worth main- limitation: he did for seven years. In 1995 he 31 (1992); Board of Governors of Federal Re- tenance obligation, Hurwitz owes the govern- declined to extend the time for the FDIC to serve System v. DLG Fin. Corp., 29 F.3d 993 ment no money regardless of the forum. Fur- bring its charges. The agency sued him in (5th Cir. 1994). RTC v. Ryan, 801 F. Supp. 1545 ther, if Hurwitz is found to have had no oper- district court in Texas. (S.D. Miss. 1992). Only when a court seeks to ational role in the bank’s mortgage-backed Hurwitz asked for access to the agency’s enjoin, not merely join, might the court ex- securities portfolios, Hurwitz would have no authority to sue letter since it is an adminis- ceed its jurisdiction. In fact, federal courts liability to a government agency. trative predicate for the lawyers’ acts and have exercised jurisdiction over the OTS In the amended complaint, the FDIC’s might reveal admissible evidence. The agen- when, as here, the relief sought does not pre- claims varnish. The FDIC drops its discus- cy refused. This court ordered it to disclose vent the OTS from pursuing its administra- sion of the connection between Hurwitz and the report after it excised the privileged tive proceedings. See, e.g., Far West Fed. Drexel—a public relations ploy—and its com- matter. Hurwitz asked for the full report be- Bank v. OTS, 930 F.2d 883, 886, 890–91 (Fed. plaints about the mismanagement of the cause even the limited disclosure revealed Cir. 1991). mortgage-backed securities, allegations oc- admissions against interest, including active material misrepresentations of fact to the 4. One Government. cupying two-thirds of its original complaint. The only claim remaining is a contingent court. The report was produced for court in- These two agencies insist that they serve one. The FDIC argues that, if the OTS deter- spection, after the FDIC moved to have an- different statutory purposes and should not mines Federated and Maxxam owed a duty to other judge read it and rule on the disclo- be compelled to work together. Despite the maintain the net worth of the bank, then sure. The court—having read the report, currently popular usage of the label ‘‘Inde- Hurwitz breached his fiduciary duty to the compared the deletions, considered the legal pendent agency,’’ no agent can be inde- bank by not compelling them to honor it. authorities, and reflected on the record—de- pendent; without a principal, there can be no The FDIC makes its claim not only contin- cides that disclosure is imperative. agent. Here two limited agents of the United gent on a favorable resolution in the OTS 3. The Report. States government claim to be wholly unre- proceeding but also contingent on the OTS’s lated. They are both parts of the executive As the expiration of the last waiver ap- lack of success in ‘‘collect(ing)’’ from Fed- branch. It is one entity, operating under a proached, the officers prepared a report to erated and Maxxam. The FDIC now abandons restrictive charter and for an ultimate prin- the board of directors. The report to the entirely the bulk of its claims and abates its cipal. board was written by two officers of the This bureaucratic shell game is aggravated remaining claim. Having hired the OTS so it FDIC—a deputy general counsel and an asso- by each sub-unit’s active misrepresentations had another forum, the FDIC is content to ciate director for operations. These officers, about the role each has played and the di- leave the resolution of liability to the ‘‘inde- signatures are supplemented by the concur- rect, total unity of financial interest. The pendent’’ regulatory process. rences of the general counsel and director. The OTS will be dismissed not because it government lawyers insisted that, although The report discussed the factual back- was improperly joined, for its joinder was the investigations were perhaps parallel, the ground, regulatory context, legal positions, clearly permissible, but because its presence two sub-units were acting completely inde- public interest, and agency policy, then it re- in this suit is no longer relevant. The OTS pendently from each other. That turns out quested permission to sue Hurwitz. It rec- was joined to prevent duplicative pro- not to be true. ommended a lawsuit and requested authority The FDIC has hired the OTS. The OTS de- ceedings, wasting precious judicial re- to sue. Technically the report covers numer- clined to use its resources to pursue these sources, harassing the respondent citizens, ous people and companies, but the principal claims, so the FDIC bought it by agreeing to and risking conflicting findings of fact and thrust is on Hurwitz individually and pay its costs. Instead of exercising regu- law. Now that the FDIC has dropped almost Maxxam Corporation, a holding company. latory judgment about America’s interest, its entire case, these risks are no longer For simplicity, Hurwitz is used as a synonym the OTS is hammering citizens at the direc- present. for all the defendants. tion of the FDIC. 7. Conclusion. 4. Attorneys, Clients and Privileges. Although the FDIC knew that an OTS ad- The OTS was properly joined. Its presence A communication is privileged from com- ministrative proceeding was imminent, it in this case would not have ‘‘affected by in- pulsory disclosure in litigation when: initiated this suit in federal court. The FDIC junction or otherwise’’ the ongoing adminis- The client asserts the privilege. and OTS worked in concert on the investiga- trative proceeding. The OTS will be dis- A lawyer acting as the client’s lawyer had tions, and the FDIC funded both investiga- missed as a party because there is no longer communicated to the client.

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00088 Fmt 0666 Sfmt 0634 E:\CR\FM\A20DE8.217 pfrm07 PsN: E20PT1 December 20, 2001 CONGRESSIONAL RECORD — Extensions of Remarks E2427 The lawyer communicated legal advice. same the government of the United States in sion in this form, its practices made its staff The lawyer prepared a legal opinion in an- the case and in an action by the Office of legal advice into an operating document, to- ticipation of litigation. Thrift Supervision for the same act. Mo- tally unprivileged. The resolution is not a The communication had no unlawful pur- ments later, the FDIC argues that it is all client asking for legal advice nor an attor- pose. one government; it must make this argu- ney giving advice, rather it is the embodi- See Fed. R. Civ. P. 26(b)(1), (3); Fed. R. Evid. ment because it has disclosed its analysis ment of a governmental agency’s final deci- 501; e.g., Rhone-Poulenc Rorer, Inc. v. Home and strategy to the Office of Thrift Super- sion about public business. Indem Co., 32 F 3d 851 (3rd Cir. 1994). vision, which disclosure destroys the pre- An analogy: A report of advice from the general counsel of the senate foreign rela- 5. Operating Lawyers & Counseling Operators. tense of an attorney-client confidence. The Office of Thrift Supervision is a mid- tions committee to its chairman may be In traditional analysis, legal counsel is a level function within the Department of privileged, but if the committee adopts the staff function, but directing operations is an Treasury, it was created by federal law to su- report as its resolution, no privilege sur- operating function. In a governmental agen- pervise the operation of savings associa- vives. This report is like one that was writ- cy sometimes the entire operation looks like tions—a function parallel to the FDIC’s with ten jointly by the architect of the capitol staff, but when one of the functions of the banks. Among other things, the director of and committee counsel and then was adopted agency is collecting claims owned through the OTS has the responsibility to enforce by the public works committee. its defunct insureds, management of receiv- part of the Federal Deposit Insurance Cor- ables and referral to legal counsel are oper- poration Act. DOCUMENT B ating decisions. The policy decision whether Another federal statute created the Fed- it is in the public interest to use litigation is eral Deposit Insurance Corporation. The CONFIDENTIAL ATTORNEY/CLIENT PRIVILEGED ultimately an operating decision. FDIC insures deposits of banks and savings COMMUNICATIONS—REPORT AND LITIGATION The authors of this report were both the associations by charging premiums. Al- RECOMMENDATIONS ON DIRECTOR, OFFICER legal and operations departments. The ap- though it has a corporate name, it is merely AND PROFESSIONAL LIABILITY CLAIMS ARIS- provals were by both departments. Neither an agency of the federal government. The ING OUT OF THE UNITED SAVINGS ASSOCIA- the assistant director who co-authored the president appoints the five-member board of TION OF TEXAS RECEIVERSHIP recommendation and request nor the direc- directors of the FDIC. The director of OTS is [Prepared by: Brill, Sinex & Stephenson, a tor who concurred was acting as counsel to automatically a member of the FDIC board. Professional Corporation] the board. Rather, they were non-lawyers re- Because its insurance is mandatory under I. BACKGROUND OF INSTITUTION porting their findings to the board. federal statutes, the FDICs revenues are United Savings of Texas (‘‘USAT’’) was This report is not a lawyer’s opinion letter; undistinguishable from ordinary taxes. In closed on Friday, December 30, 1988, upon the it is an ordinary internal operating docu- court it maintained that it was separate determination by the Federal Home Loan ment. The subject of the report is claims and from the congressional appropriations proc- Bank Board that the institution was insol- regulatory action, litigation and probable re- ess, except for some tens of billions of dollars vent and had engaged in unsafe and unsound covery, but that does not make it advice of it used to pay its insurance losses in the lending practices. The institution failed as a counsel. Because the FDIC was not very good eighties. result of excessive growth, substandard un- at its underwriting-review or supervisory-as- 8. Manipulation of the Legal Process. derwriting practices and internal controls; sistance functions, it is now in the liquida- poor investment strategies and portfolio tion business. Everything about a failed The report furthers a misrepresentation to management regarding the mortgage-backed bank is about claims; the FDIC’s stock in the court. The FDIC has represented to the securities portfolio; the failure of USAT’s trade is debits and credits of uncertain value court that the Office of Thrift Supervision is holding company, United Financial Group, in a litigious society. proceeding entirely separately from this Inc., to maintain sufficient minimum regu- A client that obtains its advice in a mixed case. The FDIC never disclosed that it had latory capital in USAT; and the severe eco- form—twisting the roles—must be able to actually hired the OTS to front for it in at- nomic slump in the Houston/Galveston area. disentangle the two strands clearly and reli- tacking Hurwitz administratively. In November of 1996 the FDIC was telling USAT was a state chartered, federally in- ably, or it loses its privilege as it would with this court that the proceedings were entirely sured savings association located in Hous- any confusion or accession. The legal anal- separate, even to the point of trying not to ton, Texas. The association was a wholly ysis in the report was commingled with ev- admit that the director of the OTS sits on owned subsidiary of a savings and loan hold- erything from malicious gossip to historic the FDIC’s board. In August, the FDIC’s ing company called United Financial Group, data. chairman had reported to a congressman: Inc. (‘‘UFGI’’). UFGI’s principal shareholders 6. Exclusions. ‘‘We are coordinating the investigation and were corporations controlled by Charles In disclosing the part of the report that it our claims against Mr. Hurwitz with the Of- Hurwitz, who has a national reputation as a knew was not privileged, the FDIC excised fice of Thrift Supervision.’’ ‘‘corporate raider.’’ UFGI and USAT were the parts that it concluded were privileged Not disclosing the report at this juncture managed by virtually the same core group of as an attorney’s advice to his client. Having would be allowing the FDIC to attempt fraud individuals. read the whole document, the nature of the and, when it fails, to hide behind a privilege From 1983–1986, as the oil industry declined excisions demonstrates the agency’s bad earned by responsible conduct. and the value of real estate in the Houston faith. The FDIC asked this court to have another market slipped, USAT changed its income The agency cut a personal description of judge examine the report so that it would strategy from traditional real estate based Hurwitz as a ‘‘corporate raider.’’ not prejudice this court in the progress of lending to high profile investments in real The agency cut an admission that the this action. For eight years the FDIC has estate and different types of securities and FDIC had already paid $4 million to its out- been ‘‘studying’’ this complex transaction, venture capital projects. In addition, USAT side counsel and expects to pay another $6 and it would like a judge not familiar with it attempted to diversify its real estate port- million. at all to examine the report. That is a trans- folio into other areas of Texas (for example, The agency cut the admission that the sav- parent dodge. Will the contents of the FDIC San Antonio, Austin and Fort Worth). ings and loan was hopelessly insolvent when report bias the court? A conclusion reached At October 31, 1988, USAT reported nega- it was sold by the FDIC to Hurwitz’s com- on an impartial consideration of the facts is tive capital of $272,791,000. At September 30, pany. not prejudice. The FDIC—no less than other 1988, USAT reported assets of $4,646,240,000, The agency cut the OTS’s involvement in litigants—does not get the option to mis- and total liabilities of $4,849,373,000. An ini- discussions about ‘‘pursuing these claims.’’ behave until caught and then ask for a clean tial review indicates that since June 30, 1987, The agency cut the regulatory background slate elsewhere. A Freudian would say that there had been a market loss in the MBS and general history. the FDIC is projecting in its concern about portfolio of $213,000,000. In addition, the esti- The agency cut the discussion of the whol- tainted process. mated commercial real estate loan losses ex- ly unrelated matters about Maxxam’s indi- 9. The Board Resolves. ceeded $500,000,000. Demand was made by the rect holding of Pacific Coast redwood forests. supervisory agent upon UFGI to honor its After the report was presented to the board The agency cut the discussion of Hurwitz’s agreement to maintain the regulatory net of directors of the FDIC, the board adopted control of companies. These things have no worth of USAT; however, no new capital in- the report as its resolution. The board reso- relation to the legitimate categories of at- fusion was made. lution served to authorize this lawsuit. The torney-client confidences. There are some board could have authorized legal action Ownership of USAT exclusions that were estimates of success against Hurwitz by a separately written res- On the date it was closed, USAT was sole- and descriptions of defects in the claim, but olution; and that resolution would have ly-owned by UFGI. According to the UFGI the bulk of the exclusions were simply a lack needed to contain no attorney’s advice, but stock records, dated September 9, 1988, UFGI of candor. the board chose the expedient of adopting as was owned by: (1) Cede & Co. (42.3%); (2) 7. Estoppel & Unitary Government its resolution the whole text of the report, Hurwitz-controlled entities (23.29%); and (3) The FDIC says that it is fully independent making it a formal statement of public pol- Drexel (9.7%). The Hurwitz-controlled enti- from the rest of the government. It makes icy. ties consisted of Federated Development this argument to avoid the complaint from While the board may not have intended Company (‘‘Federated’’), MCO Holdings Hurwitz that he is being attacked by the that Hurwitz or the public know of its deci- (‘‘MCO’’) and Maxxam Group, Inc.

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00089 Fmt 0666 Sfmt 0634 E:\CR\FM\A20DE8.219 pfrm07 PsN: E20PT1 E2428 CONGRESSIONAL RECORD — Extensions of Remarks December 20, 2001 (‘‘Maxxam’’). These three organizations, as By Bank Board Resolution 83–252, dated United, its subsidiaries, and its parent, well as Pacific Lumber, KaiserTech and April 29, 1983, approval was given to merge UFGI, were apparently run by a small core many others, comprised Hurwitz’s domain. First American Financial of Texas into group of individuals who participated in all The following are brief descriptions of the UFGI and merge their subsidiary savings as- activities. For example, it appears that the primary businesses. sociations into USAT. This approval was senior commercial loan staff was not in- MCO held a controlling interest of approxi- conditioned on UFGI stipulating to maintain cluded in the overall planning or direction of mately 45.7% of the outstanding voting stock the regulatory net worth of USAT. United. Once policy was made, the staff of Maxxam, according to its 10–K filing for Sale of Branches to Independent American merely presented for approval applications the year ended December 31, 1987. Maxxam In 1984, USAT sold several branches to that they felt had merit to the senior loan owned approximately 13.5% of the out- Independent American Savings. When Inde- committee and ultimately the board of di- standing Common Stock and approximately pendent American purchased the branches, it rectors. Senior lending employees did not ap- 93.5% of the outstanding Series D Convert- assumed liabilities of $1 billion in deposits. pear to have any real insight as to the over- ible Preferred Stock of UFGI. On March 21, In order for Independent American to do so, all direction of United or its serious finan- 1988, MCO stockholders approved the merger USAT issued cash flow bonds in five series, cial condition. However, the core group, in- of MCO with Maxxam. Maxxam is involved in labeled A–E, with coupon rates at 10%. Since cluding Berner, Gross, Crow and Hurwitz, forest products operations, real estate man- the market price was at a yield of 15%, the had knowledge of United’s serious financial agement and development, and aluminum spread between the two was a ‘‘paper gain’’ difficulties but continued to approve large products. in fair market value. Although the gain was commercial transactions in an attempt to Federated, a New York business trust, in paper, it had time value. The total ‘‘paper generate new income form riskier loans. owned approximately 9.8% of the out- gain’’ was $90 million. The bonds were United was in a relatively strong financial standing shares of UFGI. It is solely-owned collateralized by mortgages. As mortgages condition at the end of 1984. Total assets of by Hurwitz and certain members of his im- under the bond paid down, the proceeds of the association were $3.9 billion, most of mediate family and trusts for the benefit the collateral were paid to the bond. which consisted of single family residential thereof. Federated owned approximately Following the branch sale to Independent home loans and a portfolio of construction 28.2% of MCO’s Common Stock and 91.3% of American and the booking of the paper gain, and consumer loans of approximately $450 its Class A Preferred Stock. a $32 million dividend payment was made to million. Liabilities consisted of branch de- Acquisition of UFGI by Hurwitz and Creation of UFGI. The regulators approved a dividend posits of $2.3 billion and reverse repos of $59 USAT for a certain percent of the amount, if the in- million. Investment activities were confined USAT was chartered in 1937 as the Mutual stitution was profitable. The dividend was to treasuries and a small mortgage-backed Building and Loan Association, Fort Worth, maintained in an USAT certificate of de- securities (‘‘MBS’’) portfolio. At the time, in Texas. In 1946, it became the Mutual Savings posit. part because of real estate losses, emphasis and Loan Association. The association was Change in Real Estate Investment Strategy and shifted from real estate loans to securities acquired in 1970 by Southwestern Group Fi- Start-Up of Securities Trading Activity investments. The various securities activi- nancial, Inc., a wholly-owned subsidiary of It is apparent that United changed direc- ties included equity arbitrage, high-yield se- Kaneb Services, Inc. In 1978, five savings and tions in 1982 after it was acquired through a curities (‘‘junk bonds’’) and MBS. Each of loan subsidiaries of Southwestern Financial purchase of its holding company, UFGI, by the portfolios is discussed in more detail in Group, Inc. merged to form United Savings Charles Hurwitz and his related corpora- the following discussion. Association of Texas. In 1981, Southwestern tions. Prior to that time, United was a tradi- High Yield Securities Financial Group, Inc. changed its name to tional savings association making residen- Since its inception in 1985, the high yield United Financial Group, Inc. That same tial and commercial real estate loans, pri- securities area had four portfolio managers. year, Kaneb spun off UFGI by distributing marily in the Houston market. In an at- Originally the portfolio was managed by Joe its shares to the holders of its common tempt to remedy the problems caused by the Phillips and Ron Huebsch. Subsequently, the stock. Texas real estate depression and cope with program was managed by Terry Dorsey, then Hurwitz began his acquisition in 1982, as the pressures of deregulation and interest Eugene Stodart. Junk bonds were executed reflected by the Joint Proxy Statement and rate fluctuation, the association changed its in United’s account(s), with a small portfolio Prospectus, dated March 24, 1983. Federated lending policies and began investing in secu- of warrants held by United Financial Cor- Reinsurance Corporation, an insurance com- rities. In hindsight, it appears that United’s pany licensed under the laws of the State of poration (‘‘UFC’’). Commercial bonds are staff was not equipped for a transition from New York, and Federated Development Com- debt instruments and were carried as com- the lending activity of a traditional savings pany, a New York business trust, filed a joint mercial loans. Therefore, USAT could invest and loan under a regulated industry to a de- 13–D statement reporting ownership of more directly in junk bonds, but equity securities regulated industry, utilizing high profile than 5% of the outstanding shares of UFGI had to be held by its subsidiary, UFC. The commercial lending and securities invest- Common. On February 18, 1982, PennCorp portfolio was generally limited by policy to ments. (the previous parent of First American Fi- 11% of the total assets of United, 10% of David Graham and Gem Childress are ex- which were included in the commercial loan nancial of Texas) distributed 2.4 million amples of this situation. Both were highly shares of First American Common to its section. The portfolio was not hedged with respected by the United staff and the thrift options because 70%–75% were fixed assets. stockholders, in accordance with a special industry and had extensive experience in dividend. The remaining 20%, 603,448 shares, The USAT liquidity investments, which gen- commercial real estate lending. Each held erally consisted of government securities, was deposited by PennCorp in trust, in con- the position of executive vice-president in nection with a 10-year warrant to purchase were also handled by Stodart. charge of real estate lending at the time of Our review has indicated that the junk the common stock of PennCorp issued to their departure in July, 1987. A new lending Great American Insurance Company. The bond department carried a modest net profit policy was created in 1983 directed toward on the securities it traded. Because USAT Merger Agreement and the Modification high profile, glamorous commercial loan Agreement between the parties were exe- booked the bonds at cost, the actual value of transactions, together with sophisticated se- the bonds, which would vary from day to cuted on August 27, 1982. 13–D amendments curities investments. Some of the individ- filed by Federated, on December 10, 1982, day, was not reflected. The estimated unreal- uals who fit this high profile image were ized losses for 1987 were $47.9 million. Our state that it held approximately 53.8% of the Jenard Gross, Mel Blum and Stanley Rosen- MCO Holdings, Inc. total voting power. Fed- focus has been on the trading strategies, the berg. Employees like David Graham and Gem theft of corporate opportunities, and the pos- erated, MCO and ‘‘certain others’’ filed a 13– Childress who were oriented toward tradi- D amendment to increase their UFGI owner- sibility of insider trading and stock manipu- tional saving and loan real estate lending lation. ship to 19.25%. Approximately one week were eventually terminated. later, MCO and American Financial Corpora- While Jenard Gross was considered a part Equity Arbitrage tion executed a purchase and sale agreement of the high profile group, his knowledge of The equity arbitrage area was managed which set forth the purchase by MCO of commercial real estate and his reputation from inception in 1985 through January 6, 603,448 shares of First American from Amer- with United staff was very high. He was a 1989 by Ron Huebsch. The trading strategy ican Financial Corporation. The Merger real estate developer, but appeared to be well involved the purchase of stock in a corpora- Agreement and the Modification Agreement respected by all who came in contact with tion which was undergoing a merger, acquisi- were amended on January 10, 1983. him. tion, or tender offer. Profit or loss was based From November 23, 1982, until March 4, The high profile direction apparently led on the market movement or sale of the secu- 1983, MCO Holdings acquired 60,200 shares of United into lending or investment relation- rities. The portfolio consisted of 95%–97% First American Common on the open mar- ships with which it was unfamiliar and not cash and 3%–5% preferred securities, deben- ket. At the same time, American Financial qualified internally to deal with. This is true tures or debt securities. Our review has Corporation owned 20.18% of First American in regard to loans or investments outside the shown that equity arbitrage activities were Common. Ten days later, according to an Houston market. For example, United’s staff profitable for 1985 and 1986, 2.5% and 5.7% re- agreement of purchase and sale dated De- relied on contacts such as Stanley Rosen- spectively. Although equities profited in cember 27, 1982, MCO Holdings purchased berg, apparently a close friend of Charles 1987, the ‘‘market crash’’ in October resulted 603,448 shares of First American from Amer- Hurwitz, for development loans in San Anto- in a $75 million loss over a two day period. ican Financial Corporation. nio, Texas. Because of the profit prior to October, the

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00090 Fmt 0666 Sfmt 0634 E:\CR\FM\A20DE8.221 pfrm07 PsN: E20PT1 December 20, 2001 CONGRESSIONAL RECORD — Extensions of Remarks E2429 overall net profit or loss for the year was investigation. The preliminary conclusion various individuals in connection with that even. While the equity trading was profit- from the initial investigation as to officers’, investigation. In addition, we reviewed cer- able, our reconstruction of equity trans- directors’, and other professionals’ liability tain portions of PM&M’s work papers for actions in 1987 show an additional $26.5 mil- was that there did not appear to be any in- their audits of United Savings’ financial lion in unrealized losses. tentional fraud, gross negligence, or patterns statements for the periods December 31, 1983 Mortgage-Backed Securities of self-dealing. The most serious criticism of through December 31, 1986, as well as se- the officers and directors, in general, was lected audit plans of PM&M for those years. Aside from the small portfolio previously that they exercised poor business judgment We also obtained and reviewed an investiga- held, MBS activity was initiated approxi- and were negligent in the management of the tive report conducted by the trustee for mately in early 1985 by United. UMBS was institution. Couch Mortgage Company; and, to a lesser formed in 1987. The MBS portfolio had three After mid-1989, several investigations have extent, we reviewed certain work papers of managers since inception. Joe Phillips man- done forward on a case-by-case basis, and in the national accounting firm of Ernest & aged the portfolio originally and was re- some instances, litigation was initiated. The Whinney (‘‘E&W’’), the independent auditors placed by Sandra Laurenson around October separately-handled matters, which will not for Couch Mortgage Company. The results of 1986. Laurenson resigned prior to February be addressed in detail in his report, include: our investigation of the auditors are con- 1988 and was replaced by Dominic Bruno who the Chapel Creek Ranch litigation, on the in- tained in a report submitted to the FDIC on resigned in January 1989. vestigation of auditors and attorneys arising September 20, 1991. Our review to date indicates that two basic out of the Couch Mortgage transactions, liti- FDIC Drexel Task Force MBS phases occurred. The initial program gation relating to the executive employee was initiated in 1985. United purchased MBS bonus plans, the dispute regarding UFGI’s In the fall of 1989, we noted a pattern of ac- for use assets and borrowed the funds from obligation to maintain the regulatory net tivity in the investment area of USAT. This various broker/dealers (reverse repos) to fi- worth of USAT, and the inter-company re- pattern involved the potential use of USAT nance the securities using the same securi- ceivable due to USAT by UFGI on account of by Hurwitz and Milken/Drexel as part of a ties as collateral. The spread between the a tax refund. network. On December 19, 1989, we wrote to MBS and the reverse repos was approxi- The following is a summary of the work Thomas Loughran at Finkelstein, Thompson mately 200 basis points. The maturity of the done by H&G and BS&S in conducting the and Lewis and Marta Berkley regarding this short-term financing was extended through professional liability investigtin of USAT. matter. At that time, we provided Loughran interest rate swaps and ‘‘dollar rolls.’’ When In the initial investigation, we completed with various initial organizational docu- interest rates fell, the securities with higher the review of offices and the control of files ments including: (1) Pacific Lumber initial coupon rates were sold which resulted in a and documents of the association. In addi- debt securities purchasers; (2) high-yield se- profit. However, when the money realized tion, an initial review of criticized loan and curities portfolio review of unrealized losses from the sale of those securities was rein- investment transactions was completed. We as of September 19, 1988; (3) directors and of- vested, the new securities yielded a lower reviewed all relevant exam reports and su- ficers timeline; and (4) USAT chronology. rate while the cost of funds remained fixed. pervising or correspondence, including the In September, 1990, we were contacted by Thus, the spread was reduced or eliminated examination dated January 19, 1989 from the the FDIC Drexel Task Force regarding the dramatically. Regular accounting did not re- 10th District Examiners. We analyzed all securities activity at USAT. Our initial quire an adjustment of value of the securi- board, executive, loan, and investment com- meeting was with Frank Sulger, Gari Powder ties to market and the securities were car- mittee minutes. To the extent that other and Bill Carpenter of Thacher, Proffitt and ried on the books at cost. Therefore, unreal- committees were pertinent, those minutes Wood, Gary Maxwell of Kenneth Leventhal ized losses existed as the value of the securi- were reviewed. We interviewed all officers of and Company, and Jamey Basham of the ties fell. The unrealized loss at that time, the association down to the senior vice presi- FDIC. During the meeting we discussed the based on the market value of the MBS port- dent level and two of the directors. Because possible ponzi scheme, the daisy chain net- folio and hedges, was in excess of $200 mil- of the potential litigation with UFGI, other work, and the ‘‘grand conspiracy’’ pertaining lion. directors have not consented to an interview. to the use of financial institutions by the In early 1987, the second phase of trading We also interviewed the supervisory agent, corporate raiders. We also supplied the Task began, which was called risk control arbi- examiners, internal auditors and a variety of Force with the following: (1) expanded se- trage (‘‘RCA’’). RCA is a growth, leveraging other United Savings employees. In addition, lected names mention list; (2) Drexel strategy which consists of purchasing MBS we met with the former attorneys for the as- Burnham Lambert deal manager products and its derivatives financed by short-tern li- sociation. These firms, Mayor, Day & charts; (3) 1986 and 1987 securities portfolio abilities, unusually reverse repos or dollar Caldwell, and Schlanger, Cook, Cohn, Mills & reconstruction charts and the related securi- rolls. Since an interest rate risk exits be- Grossberg, were generally cooperative in all ties portfolio listings for 1986–1988; (4) pos- tween the long-term MBS and the short-term matters. sible quid pro quo analysis of Pacific Lumber financing, hedges in financial futures, finan- We inventoried over 400 lawsuits filed note purchasers; (5) high-yield securities cial options, interest rate swaps, caps, col- against United Savings and intervened on be- portfolio review of unrealized losses as of lars and repos are utilized. half of the FSLIC in lawsuits where appro- September 19, 1988; (6) high-yield securities When interest rates declined in the initial priate. Where actions were not filed in fed- purchase recommendation review; (7) inter- phase described above, the association real- eral court, we removed those cases. In each view recaps for Russell McCann, Eugene R. ized a profit on the assets over the cost of case, we prepared motions to dismiss and for Stodart and Mary Mims; (8) materials re- short-term funding. However, when interest summary judgment and have now achieved garding Transcontinental Services Group/ rates increased, the association did not real- dismissal in almost all those cases. We also TSG Holdings, Inc.; and (9) a memorandum ize the losses. In addition, the risk of the reviewed the allegations in the various law- regarding the credits chosen for sale in the lower coupon rate MBSs was not adequately suits to determine if any issues were raised autumn sales program. Subsequent to the hedged. Without discussing in detail each of that would reflect on professional liability. meeting, the following items were given to the securities and financing types and how We did not discover any issues that appeared Jamey Basham: UFGI ownership interests each related to the portfolio, the total unre- to have substantial factual support. breakdown and chart, directories of USAT alized loss at year-end for 1988 was in excess The association had a fidelity bond policy files, and a list of files removed from USAT of $300 million. issued by Victoria Insurance Company (‘‘Vic- by Berner. toria’’). However, the association did not In October, 1990, we were contacted by II. DESCRIPTION OF INVESTIGATION have an errors and omissions policy at the Cravath, Swaine and Moore. We discussed A. Scope of Investigation time of closing. As we have previously ad- with Julie North and Veronica Lewis the The investigation of USAT began on De- vised, the fidelity bond was subject to an in- same issues discussed in our earlier meeting cember 31, 1988 with Hutcheson & Grundy demnity agreement between the association in September. At this time, we provided pho- (‘‘H&G’’) and Brill, Sinex & Stephenson and Victoria secured by a letter of credit at tocopies of the exhibits to the USAT ‘‘S’’ (‘‘BS&S’’) acting as joint fee counsel on be- the Federal Home Loan Bank—Dallas. Thus, memorandum. We also sent Cravath photo- half of FSLIC. Brill, Sinex & Stephnson con- no third party coverage existed and we rec- copies of the original documents produced to ducted the investigation arising out of com- ommended the execution of a mutual release the Task Force in September. Additional mercial loan transactions, joint ventures and with Victoria. This release has been executed documents provided to the Task Force in- professional liability such as attorneys, ac- by the FSLIC and Victoria and the letter of clude: Art Berner biography; a memorandum countants and appraisers. H&G investigated credit at the Federal Home Loan Bank—Dal- to Connell and Crow regarding the reasons directors and officers liability issues arising las securing the indemnity agreement has for certain credits chosen for the autumn out of securities transactions, including expired. sales program; interview recaps for all of the mortgage-backed securities and junk bond We have investigated the outside auditor officers/directors interviewed; Charles acquisitions by USAT. for United Savings, the national accounting Hurwitz and related entities flow chart; re- The bulk of the investigation performed by firm of Peat, Marwick & Main (‘‘PM&M’’). view of certain UFGI shareholders; UFGI H&G and BS&S was conducted in the first PM&M, formerly known as Peat, Marwick & ownership interests; joint proxy statement— half of 1989. Thirty, sixty and ninety-day Mitchell, had audited United Savings’ finan- UFGI and First American Financial of snapshot reports were issued by H&G and cial statements from December 31, 1981 Texas, Inc.; UFGI proxy statement excerpts, BS&S updating FSLIC on the status of the through December 31, 1987. We interviewed dated March 31, 1987; MCO Holdings, Inc. 1986

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00091 Fmt 0666 Sfmt 0634 E:\CR\FM\A20DE8.223 pfrm07 PsN: E20PT1 E2430 CONGRESSIONAL RECORD — Extensions of Remarks December 20, 2001 10–K excerpts; chronology of UFGI—First regated time lines for United MBS Corpora- under the Texas Savings and Loan Act, Arti- American merger; several newspaper arti- tion, United Capital Management Corpora- cle 852a of the Texas Revised Civil Statutes, cles; interview recaps pertaining to the Jan- tion, United Financial Group Inc., United Fi- to limit the liability of directors. That stat- uary 12, 1989, interview of Brenda Bese, Mi- nancial Corporation and USAT; and memo- ute, Tex. Rev. Civ. Stat. Ann. art. 1302–7.06B chael Cline and Diane Buckshnis (FHLB–Se- randa, dated January 24, 1989 and March 7, (Vernon Supp. 1991), provides: attle); Leonard Lepedis report; consent 1989, from Ami Hohmann regarding utiliza- ‘‘The articles of incorporation of a corpora- agreement, dated November 7, 1988; tion of the time lines (sent to Gene Golman). tion may provide that a director of the cor- Caywood-Christian document evidencing the We have also been contacted by Sandra poration shall not be liable, or shall be liable establishment of a managed account; high- Northern at the FDIC in Washington who re- only to the extent provided in the articles of yield and MBS speed call lists; consultant quested and received copies of the following incorporation, to the corporation or its records pertaining to Walter Muller; MCO documents: UFGI ownership interests, shareholders or members for monetary dam- Holdings, Inc. and Maxxam Group, Inc. ex- Hurwitz-related entities flow-chart, Hurwitz ages for an act or omission in the director’s cerpts dated February 12, 1987; Drexel owner- asset search report, and excerpts from the capacity as a director, except that this arti- ship interests information; minutes of the Columbia Savings and Loan Complaint, cle does not authorize the elimination or meetings of the board of directors of USAT dated December 12, 1990, evidencing allega- limitation of the liability of a director to the for June 29, 1983, January 25, 1984, August 29, tions relating to Hurwitz and USAT. extent the director is found liable for: ‘‘(1) a breach of the director’s duty of loy- 1984, May 16, 1985, August 15, 1985 and Feb- B. Completion of the Investigation ruary 19, 1987; Securities Market Oversight alty to the corporation or its shareholders or In April 1991, the FDIC attorney-in-charge and Drexel Burnham hearings before The members; of the professional liability investigation, ‘‘(2) an act or omission not in good faith Subcommittee on Oversight and Investiga- Robert J. DeHenzel, Jr. requested that we that constitutes a breach of duty of the di- tions of the Committee on Energy and Com- complete the investigation and provide a rector to the corporation or an act or omis- merce, House of Representatives, April 27–28, written report and litigation recommenda- sion that involves intentional misconduct or 1988; summary of minutes of the meetings of tions. In completing the investigation, we a knowing violation of the law; the executive committee of UFGI 1987–1988; conducted several more interviews, including ‘‘(3) a transaction from which the director summary of minutes of the meetings of the the former Vice-President and General Coun- received an improper benefit, whether or not executive committee of the board of direc- sel of USAT and UFGI, Arthur Berner. We the benefit resulted from an action taken tors of USAT 1984–1988; summary of the min- also completed the analysis of the commer- within the scope of the director’s office; or utes of the meetings of the board of directors cial loan and joint venture transactions, ‘‘(4) and act or omission for which the li- of UFC 1983–1988; summary of the meetings most notably by obtaining title company ability of a director is expressly provided by of the board of directors of USAT 1983–1987; documents on the Park 410 loan transaction. an applicable statute.’’ summary of the minutes of the meetings of We then reviewed, analyzed and coordinated In February, 1988, USAT, a Texas chartered the board of directors of UFGI 1985–1987; Cor- all data obtained from the earlier investiga- savings and loan, amended its Articles of As- porate Takeovers, hearings before The Sub- tion to the present. Finally, H&G and BS&S sociation to track the statute in large part committee on Oversight and Investigations attorneys met to coordinate the results of and provide that: of The Committee on Energy and Commerce, ‘‘No director of this Association shall be their respective portions of the investigation House of Representatives, October 5, 1987; liable to the Association or its shareholders and to reach a consensus on conclusions and Maxxam’s answers to questions raised by or members for monetary damages for an act recommendations. The Subcommittee on Oversight and Inves- or omission in such director’s capacity as a tigations, appendix A; documents entered III. director except for the acts or omissions set into the record by The Subcommittee on A. Applicable Standards CLAIMS AGAINST forth below: Oversight and Investigations, appendix B; OFFICERS AND DIRECTORS ‘‘1. A breach of the director’s duty of loy- and possible quid pro quo and Drexel/Milken The standards applicable to the directors alty to the Association or its shareholders or connection analysis chart. of USAT require a showing of gross neg- members; FDIC Directors and Officers Investigation Unit- ligence or worse, a breach of fiduciary duty, ‘‘2. An act or omission not in good faith or Dallas violation of statutory duty, or the receipt of that involves intentional misconduct or a an unlawful benefit. The officers are held to knowing violation of the law; In May, 1990, we provided Floyd Robinson a ‘‘3. A transaction from which the director the ordinary corporate duty of care and loy- set of the original organizational charts per- received an improper benefit, whether or not alty. Section 212(k) of FIRREA (18 U.S.C. taining to the securities transactions at the benefit resulted from an action taken 1821(k)) provides that a director or officer of USAT. These documents included: selected within the scope of the director’s office; names mentioned list; materials involving an institution may be held personally liable ‘‘4. An act or omission for which the liabil- Transcontinental Services Group; possible for damages for ‘‘gross negligence, including ity of the director is expressly provided for quid pro quo analysis of Pacific Lumber note any similar conduct or conduct that dem- by statute; or purchasers; high-yield securities portfolio re- onstrates a greater disregard of a duty of ‘‘5. An act related to an unlawful stock re- view of unrealized losses as of September 19, care (than gross negligence), including inten- purchase or payment of a dividend. 1988; USAT and related entities securities tional tortuous conduct, as such terms are ‘‘If the Texas Miscellaneous Corporation transactions reconstructions; and Drexel defined and determined under applicable Laws Act or other applicable law (herein col- deal-manager products charts. State law. Nothing in this paragraph shall lectively referred to as the ‘‘Act’’), herein- In October, 1990, we were contacted by impair or affect any right of the Corporation after is amended to authorize the further Richard Boehme regarding the USAT D&O under other applicable law.’’ elimination or limitation of the liability of investigation being conducted at the FDIC in Under FIRREA, therefore, an officer or di- directors, then the liability of a director of Dallas. We produced to Mr. Boehme the same rector is liable for those standards imposed the Association, in addition to the limita- documents which were originally produced by the common law of the applicable juris- tion on personal liability provided herein, to the Drexel task force. In addition, we sent diction, or in the absence of a higher stand- shall be limited to the fullest extent per- the asset review reports, USAT snapshot in- ard, gross negligence or worse conduct as de- mitted by the Act as so amended. No amend- vestigation reports dated January 31, 1989, fined by state law. The Supreme Court of ment to or repeal of this Article EIGHTH March 17, 1989, and April 10, 1989, and cor- Texas defines gross negligence as ‘‘that en- shall apply to or have any effect on the li- respondence, dated September 19, 1989, to tire want of care which would raise the belief ability or alleged liability of any director of Thomas J. Loughran. that the act or omission complained of was the Association for or with respect to any The following documents have also been the result of a conscious indifference to the acts or omissions of such director occurring sent to the investigative unit at the FDIC: right or welfare of the person or persons to prior to such amendment or repeal.’’ possible quid pro quo and Drexel/Milken con- be affected by it.’’ Williams v. Steves Indus- We found no Texas case law addressing the nection analysis chart (sent to Richard tries, Inc., 699 S.W.2d 570, 572 (Tex. 1985), applicability of this statutory liability limi- Boehme); inventories of the original and quoting, Burk Royalty Co. v. Walls, 616 tation provision. However, the utilization of photocopied corporate USAT documents lo- S.W.2d 911 920 (Tex. 1981). the court went on the statute by directors who may be the tar- cated in our office and in off-site storage to say that gets of claims is clearly contemplated by the (sent to Bruce Dorsey); a revised expanded ‘‘[The] plaintiff may prove a defendant’s statute. In its original enactment, the 1987 selected names mentioned list (sent to Mike gross negligence by proving that the defend- statute stated that the limitation did not Wysocki); USAT snapshot investigation re- ant had actual subjective knowledge that his apply to acts or omissions occurring before ports dated January 31, 1989, and March 17, conduct created an extreme degree of risk. In the effective date of the Act. Accordingly, it 1989, correspondence, dated December 19, addition, a plaintiff may objectively prove a could be argued that the liability of the di- 1989, to Thomas Loughran, correspondence, defendant’s gross negligence by proving that rectors of USAT is not limited as to acts oc- dated December 19, 1989, to Marta Berkley, under the surrounding circumstances a rea- curring either before the effective date of the correspondence and report on potential audi- sonable person would have realized that his statute (August 31, 1987), or even before the tor’s claim arising out of the USAT receiver- conduct created an extreme degree of risk to date that USAT amended its Articles to in- ship, dated July 11, 1989, prepared by Brill, the safety of others.’’ Id. at 573. corporate the limitations (February 1988). Sinex and Hohmann, ‘‘S’’ memorandum rec- Effective August 31, 1987, Texas adopted a The standards applicable to officers con- ommendation, USAT/UFGI time line, seg- statute allowing an institution organized tinue to include good faith and prudence in

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00092 Fmt 0666 Sfmt 0634 E:\CR\FM\A20DE8.225 pfrm07 PsN: E20PT1 December 20, 2001 CONGRESSIONAL RECORD — Extensions of Remarks E2431 the performance of their duties which must ment of certain officers and key personnel by ments and the investment department, and be carried out with ordinary care and dili- USAT and UFGI or Hurwitz controlled enti- failed to hire and maintain employees with gence, First State Bank v. Metropolitan Cas- ties; requisite experience and knowledge to han- ualty Ins. Co., 79 S.W.2d 835, 839 (Tex. 1935), 6. the lack of control or supervision of the dle the complex and risky investments un- and which may not be delegated to strang- equity arbitrage transactions completed by dertaken by the institution. These failures ers. Brand v. Fernandez, 91 S.W.2d 932, 939 Ron Huebsch for the USAT subsidiary, are evidenced by: (Tex. Civ. App.—San Antonio 1935, writ United Financial Corporation, and for 1. The gains trading or profit taking activ- dism’d). Maxxam and other Hurwitz controlled enti- ity conducted without regard to ultimate ef- In summary, while officers are held to an ties; fect on investment portfolio; ordinary standard of reasonable care, it 7. the fact that the Investment Committee 2. Post execution approval of transactions could be argued that a claim against a direc- minutes were created after the fact and were and approval without sufficient information tor must allege at least gross negligence or not an accurate reflection of the delibera- as to beneficial owners or control persons; breach of fiduciary duty (duty of loyalty), tions or actions of that Committee; 3. Lack of control or supervision of trading self-dealing (receipt of improper benefit), or 8. the fact that the Investment Committee in equity arbitrage area, including daily re- violation of a statutory duty. was a joint USAT and UFGI committee; moval of files; The defenses commonly raised in actions 9. the Transcontinental Services Group 4. High turnover of employees in each secu- against directors and officers are application transaction. rities area; of the business judgment rule, reliance on To the extent it is acknowledged at all, the 5. Employment of inappropriate people counsel or consultants or management, lack officers and directors justify their willing- without thrift experience, such as Sandra of causation, contributory negligence, or ness to consult with Hurwitz on the basis of Laurenson, a trader from Solomon Brothers, failure to mitigate. The business judgment Hurwitz’s expertise in the securities area and to manage an investment portfolio; rule, a common-law principle recognized in his status as the ultimate controlling share- 6. Failure to investigate default rate on Texas, provides that an officer must dis- holder. While circumstantial evidence of this given bonds and adequately reserve for charge his duties with the care of an ordi- delegation is good, the testimony of the wit- losses; nary prudent man under similar cir- nesses will vary as to the extent of Hurwitz’s 7. Employment of advisors such as cumstances. Therefore, honest mistakes of influence. Given the actual or perceived ne- Caywood-Christian Capital Management, judgment are not actionable. cessity of turning from traditional invest- Walter Muller, and others; B. Securities Investment and Trading ments in real estate to the fast paced, more 8. Participating in risky mortgage backed The directors and senior officers of USAT complicated securities arena and the lack of securities or derivative transactions without were primarily people who understood the expertise on the part of the directors, the adequate capitalization or funding; savings and loan industry in Texas when it fact that Hurwitz, who was Chairman of the 9. Retaining poor investments because was based on the local real estate market. sole shareholder, was allowed to fill the gap sales would require disclosure of losses; After the collapse of the real estate market does not seem to pose an extreme degree of 10. Failure to recognize the effect on the and the refocus of the institution on the se- risk to the institution or its creditors. Nor market of the monopolies of Solomon Broth- curities markets, the directors and officers does the officers’ willingness to rely on ers in MBS and Drexel in junk bonds; were unprepared to meet the challenge of available expertise of a party they have 11. Investment by officers in companies in adequately directing and supervising invest- every reason to believe has no conflict with which USAT’s subsidiary, United Capital ments in the incredibly complex and sophis- the institution necessarily violate the pru- Ventures, also held interests. The proof indicates more than anything ticated securities available and marketed to dent man rule. Secondly, our review disclosed that the of- else that the directors and senior manage- the savings and loan industry. We focused ficers and directors approved transactions ment found themselves trying to keep the in- primarily on those senior officers and direc- designed to defeat or evade safety and sound- stitution afloat and play an entirety new tors who had ties to UFGI and Hurwitz, in- ness regulations. Our investigation disclosed ball game at the same time. While the profit cluding Gross, Berner, Crow, Heubsch and that the officers and directors of USAT au- taking strategy is well established, the di- Munitz. We also looked specifically for evi- thorized and directed a profit-taking strat- rectors’ motivation was maintenance of the dence of speculative trading, theft of cor- egy requiring significant speculative trad- institution in compliance with the capital- porate opportunity, insider trading, and ing, and allowed the accounting department ization requirements and not self gain or vio- stock manipulation. While we did find evi- to book the securities as investment ac- lation of their duty of loyalty. The business dence of speculative trading as outlined counts rather than trading accounts. Since judgment rule will be the primary defense to below, we found no direct evidence of insider the securities booked as investments were this cause of action. It will be difficult to trading, stock manipulation or theft of cor- carried at cost rather than market value, the show gross negligence on the part of the di- porate opportunity by the officers and direc- books of USAT failed to reflect the true rectors, and the efforts at control under- tors of USAT. We did find evidence that value of USAT’s assets. Perhaps more impor- taken by the officers may not be far from Charles Hurwitz may have used USAT in tantly, the officers and directors not only that which would have been undertaken by connection with insider trading or stock ma- authorized but demanded gains trading, i.e., reasonably prudent persons faced with the nipulation, and those findings have been the taking of profits in the portfolios and same volatile market. turned over to the appropriate task force in holding unrealized losses at cost, regardless Finally, we found some evidence of self Washington. Specifically, our review disclosed evidence of future income stream loss, to meet the dealing, or misappropriation of funds. Under of acts and omissions which could form the capital requirements at each quarter end. the Texas statute, the directors would be lia- basis of negligence, breach of fiduciary duty USAT’s outside auditors, Peat Marwick & ble only for transactions which resulted in or fraud claims, which are fully outlined in Mitchell raised concerns about the amount ‘‘improper benefits’’ to individual directors. the Interim Report on the Securities Investiga- of activity in the investment account, but Specific directors who benefitted from tion of United Savings Association of Texas eventually approved the USAT accounting questionable payments included Jenard dated April 29, 1991. First and foremost procedures. The officers and directors have Gross, Barry Munitz and Robert Kuhn. The among those possible claims is the apparent justified the trading activity on the basis of payments each have some ostensible purpose relinquishment of direction and control of the volatility of the market in which they and the totals for those payments we discov- the investment policy of USAT to Charles were investing. Investigation and recon- ered are small, amounting to approximately Hurwitz, evidenced by: struction of the trades indicate that as of $50,000. We do not feel this is a strong claim. 1. the statements of Mike Crow, Mike 1987, there were approximately $74.4 million There were also significant salary in- Canant, and Jeff Gray; in net unrealized losses in high-yield and eq- creases for officers between 1987 and 1988, as 2. the views of the financial world at the uity portfolios alone. Obviously, as of any well as unusually substantial bonus pack- time; particular date, there would be unrealized ages. These increases and bonuses have been 3. the fact that James Paulin, who estab- losses even in a properly managed invest- justified as necessary to retain the officers lished the investment department at USAT, ment portfolio carried at cost on the books. for the benefit of the institution and will be was not a USAT employee, but an employee Determination of actual damages will re- discussed later in this report. of Hurwitz controlled Federated, Inc.; quire the development of an economic model We also carefully reviewed the securities 4. the location of the securities trading by an economist to determine the proper in- transactions to determine if the relationship area as well as the offices of Mike Crow, Fi- vestment strategy had the institution not between USAT and Hurwitz and UFGI re- nancial Vice President, Bruce Williams and been taking profits to maintain capital re- sulted in the diversion of USAT opportuni- Jim Wolfe on the twenty-second floor of quirements. In view of the consultation and ties available to other Hurwitz entities. Al- MCO Plaza, the same floor which housed reliance on outside auditors, it will be hard though Heubsch traded equities for numer- Hurwitz, the corporate offices of Federated, to prove gross negligence or breach of duty ous Hurwitz entities and we believe Hurwitz Inc., and other Hurwitz controlled entities unless there was actual fraud and we have directed certain purchases to further his while other upper level management was lo- been unable to find such evidence. takeovers, we found no evidence of direct di- cated on the sixth floor of MCO and in Phoe- Third, the officers and directors failed to version of opportunities. Heubsch often nix Tower; establish and follow safe and sound invest- bought the same securities for several 5. the employment by USAT of Hurwitz ment policies, failed to properly institute Hurwitz companies and when there were dif- employees and associates, and dual employ- and monitor internal controls on invest- ferences, they were generally related to the

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00093 Fmt 0666 Sfmt 0634 E:\CR\FM\A20DE8.227 pfrm07 PsN: E20PT1 E2432 CONGRESSIONAL RECORD — Extensions of Remarks December 20, 2001 status of the other investments in the port- USAT. As such, Mr. Rosenberg should not United a 40% net profits interest. In Novem- folio. have received unearned fees or participated ber of 1988 United requested that FHLBB We found that several of the officers and in transactions in which he would have con- allow refinancing of the subject note since directors had invested in the same entities flicts of interest. cash-flow was below projected rates for Gate- as USAT’s venture capital arm, but there The Park 410 loan transaction had a num- way. The request was granted on December 8, was no evidence that the benefits would have ber of deficiencies. First the loan was ap- 1988, with the following terms: otherwise accrued to USAT. Our investiga- proved by the Senior Loan Committee of 1. Extension of note term to January 1, tion did not disclose a sufficient basis for a USAT even thought e appraisal did not sup- 1991; claim of theft of corporate opportunity. port the full $80 million loan amount. Sec- 2. Per annum interest under note to be We also reviewed the relationship between ond, the loan was secured by letters of cred- 10.5%; the traders and the securities industry to de- it. In addition, the letters of credit were re- 3. Effective December 1, 1988, through De- termine if there were payments, prizes or re- newable yearly but the note term was for cember 1, 1990, borrower pays only interest wards which could constitute commercial five years. Thus USAT ran the risk that the as it accrues; bribery, but the few items we found were in- letter of credit would not or could not be re- 4. Payment of monthly installment of ac- sufficient to support a claim. newed in the future. crued and unpaid interest in excess of 8.5% In summary, the best claims against the Third, Stanley Rosenberg received $400,000 per annum may be deferred until maturity; directors and officers involve their delega- directly from the USAT loan proceeds at and tion of their duty to manage and direct to closing as a fee for the ‘‘service’’ of securing 5. Borrower to provide operating state- Hurwitz, and the authorization of specula- the USAT loan. The fee was not disclosed in ments, rent rolls, year-end operating state- tive trading and accounting procedures the loan application made by the borrower’s ment and annual audited financial state- which did not reflect the true value of the in- agent, Gulf Management Resources, Inc. In ments. stitution. While it is extremely difficult to addition, the loan funds a quarterly man- We understand from USAT that there have evaluate these claims at this time, we be- agement fee ($75,000 per quarter for the first been no losses recognized on the Gateway lieve the likely percentage of success on li- three years of the loan, $50,000 per quarter in loan. ability issues is in the 40–60% range. the fourth year, and $37,500 per quarter in 3. Park 10. This loan, in the amount of $16,000,000.00 was made by way of a non-re- C. Compensation Arrangements the fifth year), payable to Gulf Management Resources, Inc., which in turn pays Stanley volving line of credit loan agreement dated We received the significant salary in- Rosenberg 25% of that fee, apparently for no December 17, 1986. The interest rate is Texas creases which the officers and directors pro- present or future services. All of these un- Commerce Bank’s prime rate plus 1.75% with vided to the officers as well as the substan- earned fees were paid to Mr. Rosenberg in interest payments to be made monthly. This tial bonus arrangements. These compensa- violation of 12 CFR § 4563.40, if Rosenberg is loan was primarily granted to provide funds tion arrangements are the subject of sepa- in fact an affiliated person. for the payment of interest of outside debts. rate lawsuits and are not addressed in this Fourth, disbursements made at closing The maker of the note was Park 10 Limited report except as evidence of other claims were not fully disclosed, as there was no rec- which is a Texas limited partnership. The which could be brought. onciliation of proceeds disbursed directly to general partner is Park 10 Corporation which D. Real Estate Transactions borrower and no discussion of disbursement is wholly owned by Neil C. Morgan. Morgan After investigating transactions which rep- to C.R. McClintock of funds paid directly to is also the limited partner of Park 10 Ltd. resent 85% of the value involved with sub- Alamo Savings Association by USAT. There Morgan executed a Continuing Limited standard loans, no clear trends have emerged was a very large sum of money which C.R. Guaranty which provides that he is person- to reveal any pattern of self-dealing with re- McClintock and/or Alamo Savings and Loan ally liable to a maximum of $3,000,000.00 spect to real estate lending and joint ven- made from selling the land to Park 410 West which is declining with each monthly inter- tures. Various federal regulations were given Joint Venture, which is difficult to tract. est repayment. As of this year, Morgan’s particular scrutiny; those regulations in- Also, the closing statement shows the guaranty has been exhausted. park 10 Ltd. clude: amount of $2,915 million was disbursed by was then placed in bankruptcy with a loan 12 U.S.C. § 84—Loans to a single borrower the title company to Park 410 West Joint balance due to USAT of in excess of $16 mil- in excess of 15% of capital; Venture, the borrower, for reimbursement of lion. However, it is our understanding from 12 U.S.C. § 375a—Limits on loans to execu- expenses, but it is unknown where these USAT that Morgan is making arrangements tive officers; funds then went. There are indications that to satisfy this debt. 12 U.S.C. § 375b—Prohibition on pref- Mr. Rosenberg may have gotten these funds Collateral on the loan is ‘‘Park 10 Develop- erential loans to directors of subsidiaries and since his own limited partnership agreement ment’’. The repayment of the loan is based holding companies. Limits on loans to execu- reflected that he had advanced $2.198 million solely on the sale of this collateral property. tive officers and shareholders of 10% or into the initial Park 410 Venture. The docu- There does not appear to be any evidence more; ments we reviewed at the title company and of payments which could be classified as 12 U.S.C. § 1828(j)—Prohibition on pref- Alamo Savings shed no further light on this fraudulent transfers, kickbacks, or forms of erential loans to officers and directors; situation. disguised compensation. The substandard 12 CFR § 563.9–3—Loans to one borrower; Finally, in addition to an extremely defi- classification of this loan was necessarily 12 CFR § 563.17—Safe and sound manage- cient file on the collateral and credit infor- based on the liberal structure of the loan, ment practices; mation on the loan, the appraisal prepared the declining limited personal guarantee of 12 CFR § 563.40—Prohibition on affiliated by Edward Schulz for USAT failed to provide the principal and the lack of a demonstrated person from receiving fees or other com- an appropriate analysis of values under the market for the collateral property as well as pensation with their procurement of a loan; three approaches, violating R41b(3). the uncertainty of the timing and source of 12 CFR § 563.41—Places restrictions on real The probability of success in respect to Mr. repayment. The the stock of Yellow Cab. The property transactions with affiliated person; Rosenberg being considered an affiliated per- transaction was apparently structured as a and son is good, but not necessarily without subordinated loan with warrants using a sec- 12 CFR § 571.7—Deals with conflicts of in- question. Mr. Rosenberg also has a large per- ond-tier subsidiary in order to allow USAT terests. sonal guaranty in respect to the Park 410 to avoid the equity risk investment and The following are summaries of our inves- transaction with USAT. A settlement pro- loans to affiliates rules contained in 12 tigations and recommendations: posal has been made by the borrowers to C.F.R. Sections 563.9–8 and 563.43. Yellow 1. Park 410. The transactions involving Mr. FDIC to work out the Park 410 loan. At this Cab, at its option, had the right to cause Stanley Rosenberg were strongly criticized time, it is not known how much the losses WMI to exercise its warrants in payment of by the FHLB examiners, particularly the will be on this loan, if any. the $2,200,000 loan. Park 410 transaction in San Antonio, Texas. 2. Gateway Joint Venture. This trans- The documentation does not support the Mr. Rosenberg is related to USAT because he action also involved Stanley Rosenberg but concept of a standard loan transaction. Yel- is a shareholder and director of MCO Hold- primarily as a Guarantor for the top 25% of low Cab did not have cash flow sufficient to ing, Inc. which owns the largest single share- this $920,000.00 obligation. The makers on the service the debt incurred in acquiring the holder interest (13.5%) in UFG, the parent note were E. John Justenia, Gordon A. Eagle stock, no payments are required or company of USAT. M. Rosenberg is a close Woods and Lee R. Sandoloski, Stanley even permitted on the $2,200,000 note prior to personal friend of Charles Hurwitz, who is Rosenberg’s son-in-law. 1990, and Yellow Cab has the option to cause also a shareholder and director of MCO Hold- The appraisal of the property which was WMI to convert the warrants to stock at ing, Inc. and a director of UFG. Mr. Rosen- the collateral used in this transaction ap- Yellow Cab’s option. berg can be considered an affiliated person pears to have been competently researched The interest rate on the $2,200,000 loan was for purposes of conflict of interests (12 CFR and prepared, although slightly optimistic. 15% per annum, and no due date is specified § 571.7), unearned transactions (12 CFR The structure of the loan provided for a on the note, despite a one-year term which is § 563.41). It is our preliminary opinion that rate 1.5% over prime with a 24 month term. specified in the Purchase Agreement. The Mr. Rosenberg would be an affiliated person United was granted a 15% net profits inter- stated purpose of the $2,200,000, according to who indirectly acting in concert with other est, and it was anticipated the loan would a memorandum in the file, was to allow WMI shareholders of UFG, the parent company of roll into a ‘‘mini-perm’’ with a five year ma- to make an equity investment in Equus USAT, controlled the election of directors of turity. The funding of the ‘‘mini-perm’’ gave Transportation, Inc., without violating the

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00094 Fmt 0666 Sfmt 0634 E:\CR\FM\A20DE8.230 pfrm07 PsN: E20PT1 December 20, 2001 CONGRESSIONAL RECORD — Extensions of Remarks E2433 equity risk investment and loans-to-affili- exchange for an assignment of units in the 10. The Market at Hunting Bayou. This ates rules. Equus was perceived as a can- condominium project and an assignment of a transaction involved two separate loans, ap- didate for an initial public offering of its $10 million promissory note payable to the proved in February 1985, one for $7,050,000, stock which would allow USAT the oppor- New Orleans Saints. Stanley Rosenberg was which was for the retail portion of the Mar- tunity to obtain a ‘‘significantly enhanced one of the guarantors of the $10 million note, ket at Hunting Bayou, and a $2 million loan return’’ on its investment. but we were unable to discover any other for an adjacent tract of land. Makers on the Almost from inception, Yellow Cab experi- connection Mr. Rosenberg had to the trans- note were Larry Schulgen and the Market at enced cash flow problems. In order to meet action. Hunting Bayou, Ltd. Guarantors were Larry additional cash flow requirements, WMI The $10 million promissory note was paid, Schulgen, Leo Womack, George Gilman and loaned Equus an additional $500,000, evi- however, USAT lost money on the sale of the Dan Sharp. The $7,050,000 loan was approved denced by a promissory note dated July 1987 condominium units. Concerns have been for the acquisition of 12.603 acres of land and and received warrants to purchase 400,000 ad- raised regarding the unusual method by to develop a shopping plaza. The $2 million ditional shares of Equus’ common or pre- which the units were marketed, involving a loan was approved for the acquisition of 13.41 ferred stock at a purchase price of $1.25 per sale and lease-back of the units by USAT. acres of land and 2.4973 acres of leasehold in- share. The interest rate on this $500,000 loan However, during the time period in which terest with the term of that lease being 99 was also 15% per annum, and again, no due the units were marketed, 1985–1986, Houston years. The land and leasehold interest which date was specified in the note. Equus has the had an extremely soft market for luxury were collateralizing the $2 million loan were right to roll over principal and accrued in- high-rise condominium units. contiguous to the 12.603 acres previously pur- terest on the first through fourth anniver- No wrongdoing or self-dealing was discov- chased for the development of the shopping sary dates and, on the fifth anniversary date ered in this transaction, but there were sev- plaza. to the extent that WMI’s exercise of the ad- eral violation of regulations, The approval of the total loan package of ditional warrants, if any, has not fully dis- including 12 C.F.R. § 563.17 (failure to ob- $9,050,000 was subject to an appraisal indi- charged the $500,000 note, Equus has the tain appraisals prior to making the loan). cating a maximum loan-to-value ratio of right to give WMI a five-year term note bear- 8. North Lake (f/k/a Westgate). This was a 80%. The original appraisal for USAT was ing interest at 15% per annum, principal and joint venture of USAT’s subsidiary, UFG, completed by Edward B. Schulz & Company interest of which are to be paid monthly. and was carried on the general ledger ac- on January 31, 1985. The appraiser, Lot USAT’s participation in the Yellow Cab counts. The date of the loan was August 1, Braley, issued an opinion based on the fair transaction appears to evidence poor busi- 1984, and the maker on the note was United market value of the land and the proposed ness judgment at best and possibly gross Financial Corporation. Principal was to be shopping complex. The appraised value of the negligence. USAT performed almost no un- repaid when land was sold. land and proposed shopping center was esti- The stated purpose of the joint venture derwriting or analysis on the loan and the mated to be $11,300,000. The appraiser’s re- was to develop tracts of land totalling 272.4 files do not even contain a loan application. port was issued to USAT; and, based on that acres located in the northeastern portion of USAT’s obligation to loan funds to WMI was report, USAT recommended a loan ratio of San Antonio, Texas. United Financial Cor- open-ended and USAT pledged its own assets 80%. The total loan package of $9,050,000 was poration was obligated to fund all principal as collateral for WMI’s obligation on the $4 proposed by the Senior Loan Committee of and interest in this transaction, which was million letter of credit. Corporate formali- USAT and accepted by the Market at Hunt- originally estimated to have run $7.5 million ties were not followed as all employees of ing Bayou, Ltd. The construction loan on top of $7.5 million needed to service the WMI were employed and paid by USAT. checklist makes reference to the compliance first, second and third liens against the sub- We did not uncover, however, any evidence with R. 41b, but this is the only notation of ject property. An appraisal was prepared by of any insider relationship to the transaction compliance with the Regulations. There was Love & Duggen, M.A.I., of San Antonio, or any self-dealing by officers and directors no other mention in any of the Senior Loan Texas, and indicates that the property had a with respect to the transaction. USAT has Committee reports about the accuracy and/ ‘‘developed’’ value of $17,800,000 and an ‘‘as- not yet provided us with loss figures for this or adequacy of the appraiser’s report and is’’ value of $14,840,000 as of January 13, 1987. transaction, and the losses may not yet be compliance with the standard set down in 12 No analysis of UFC’s credit was revealed in fully known. C.F.R. Section 563.17–1a. a search of the files and is unlikely to exist, 6. Jerald Turboff Transactions. Prior to At the time the Senior Loan Committee as UFC owns the property 100%. November 1985, Jerald Turboff had been in- was anticipating an amendment to the There is no collateral in the usual sense of volved in a number of loan transactions with the word, as UFC owns 100% of the property. project at the Market at Hunting Bayou, it United Savings Association of Texas which There have been no land sales and therefore requested an appraisal from Cushman & appear to have been made at arm’s length no repayment. Wakefield. The appraisal was completed by and did not result in any losses to USAT. In Stanley Rosenberg, who served on the Paul Smith. On October 18, 1985, he appraised November 1985, Turboff approached USAT board of UFC, is a partner in the law firm the property and improvements to be valued with a business proposal that resulted in that performed $9,500 worth of work on this at $9,820,000. Based on this reduced appraisal four distinct but related transactions. On its project; and he is also president of Blazers, value and the increasing softness of the gen- face, Turboff’s proposal appeared advan- Inc., the project’s managing partner. The eral retail market, the Senior Loan Com- tageous to both parties; however, because of structure of this transaction wherein UFC mittee approved the proposal submitted by declining property values and Turboff’s cash owns the property calls into play restric- L. Schulgen to develop the tract into sites flow problems, the transactions ultimately tions on real property transactions and loans for miscellaneous uses such as restaurant resulted in losses for USAT. to affiliated persons addressed in 12 C.F.R. pads, office, medical arts center, and to es- The Turboff transactions are described in Sections 563.41 and 43. tablish release prices based on an allocation detail in the BS&S Interim Report. We con- 9. Eagle Hollow. This loan was dated Sep- of the loan to these proposed sites. At the cluded there that the transactions appeared tember 16, 1982, and was in the principal time of the proposal, the borrowers were ne- to have a legitimate business purpose and amount of $9.7 million. The makers of the gotiating the sale of a 1.15-acre restaurant that no evidence of misconduct was uncov- note were Eagle Hollow Partners, Ltd., Wal- pad and had received interest in two addi- ered. USAT’s actual losses on these trans- ter B. Eeds, David C. Hetherington, and The tional sites. actions has not yet been determined because Greystone Group. The term of the note was After the Market at Hunting Bayou filed they all involved the sale of USAT REO eight years at an interest rate of 12.75% plus bankruptcy on August 7, 1986, the bank re- which it eventually got back. Because these 50% of cash flow and 50% of profits due at quested an investigation into the maker and were non-income producing properties, we do sale or time of refinancing. The stated pur- guarantor’s financial standing. This inves- not believe that the aggregated losses were pose of the loan was to provide a portion of tigation was conducted by Pinkerton Inves- that significant. Again, these transactions the funds necessary to refinance the acquisi- tigation Service. The report is dated Novem- are more easily criticized in hindsight as evi- tion of real property consisting of 10.003 ber 4, 1988. Prior to the financial problems of dencing poor business judgment. acres which was located 12 miles west of the Market at Hunting Bayou and in an at- 7. Warwick Towers Venture. The Warwick downtown Houston adjacent to Shell Oil tempt to keep the loans viable and to give Towers loans were originated in 1983. An Company’s facility at Dairy Ashford and the project a chance to succeed, USAT grant- $11,840,500 loan was made by Warwick Towers Interstate 10. There were to be 351 units in 21 ed a $180,000 loan on January 6, 1986, to pay Venture and guaranteed by the John W. separate buildings with 280,718 net rental delinquent interest on the $2 million loan Mecom Company. The Warwick Towers Ven- square feet. The loan was to be non-recourse and accepted a $20,000 promissory to pay the ture was also the maker on an additional except for $2.2 million that was to be guaran- origination fee on the $180,000 loan. After re- non-recourse loan for $16,995,000. The original teed by Walter B. Eeds and David C. peated demand letters for satisfaction of the loans were made with very poor under- Hetherington jointly and severally. An ap- debt and threatened foreclosure against the writing analysis and with very favorable praisal was conducted by Edward Schuly & properties and shopping center, USAT en- terms to the borrower. When the project did Company on two separate occasions. On Jan- tered into an agreement with the borrowers. not perform as expected, USAT entered into uary 16, 1981, the property appraised for $10 There continued to be problems with the a settlement agreement with the borrower million. An April 14, 1982, the property ap- loans, and letters continued to be exchanged and guarantor, again with little under- praised for $11,500,000. An appraisal was also between USAT and Schulgen. writing analysis. USAT released the obliga- ordered for May 1986 but was cancelled at the USAT files indicate that the Market at tions of the borrower and the guarantor in request of USAT. Hunting Bayou filed bankruptcy in the

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00095 Fmt 0666 Sfmt 0634 E:\CR\FM\A20DE8.232 pfrm07 PsN: E20PT1 E2434 CONGRESSIONAL RECORD — Extensions of Remarks December 20, 2001 Southern District Bankruptcy Division in Jacobson. However, it does not appear that the appraisal was made in accordance with Houston. The case number is 87–07584–H–11. the loan-to-one borrower rule would be vio- contemporary appraisal techniques that met The plan contemplates that certain pay- lated due to the size of USAT. the requirements in guideline R. 41b of the ments to other creditors will be made out of 13. Cinco Ranch. Cinco/Watson J.V. was Federal Home Loan Bank Board. the cash flow before distributing net reve- formed as a joint venture of United Savings The only credit history found in the files nues to United Savings. The plan is unclear Association of Texas and Dempsey Watson were financial statements submitted by the as to the amount of the debt that will be al- for the purpose of investing in real estate. Criswells and Isaac Stein. Bill and Sharon lowed to USAT. It does not appear from the Cinco/Watson purchased 22 commercial Criswell are principals in Criswell Develop- loan file that these loans were related to any tracts totalling 379.83 acres within Cinco ment Company, which in 1985 ranked among other loans or transactions held by USAT. Ranch for a purchase price of $33,345,434. the 25 largest diversified development com- 11. Woodcreek Apartments Phase II. The Twenty percent of the total purchase price panies. Isaac Stein was then serving as presi- date of this loan is shown as being June 5, was paid as a down payment, and a non-re- dent of Waverly Associates and managed its 1987, with the maker on the note being course note was executed in the amount of investment partnerships. Waverly Develop- Woodcreek on the Bayou Phase II Apart- $26,676,347. Makers on the note were Cinco/ ment Limited Partnership and Criswell De- ments Partnership. There were no guaran- Watson Joint Venture, and the payee was velopment Company had been successful in tors for the note, but the nominees are the Cinco Ranch Venture. Accrued interest was past ventures, including a majority equity general partners, Paul C. Jacobson, Allen P. to be paid on June 10 and December 10 of interest in the Dorchester Hotel in London. Jacobson, Gene P. Jacobson, and Evan K. each year, commencing on June 10, 1985, and The Remington Hotel opened in November Jacobson. The face amount of the non-re- continuing through and including June 10, 1982 and was built by Rosewood Hotels, Inc., course note was $1,665,000, and the due date 1990. The purpose of the transaction was to in conjunction with the Caroline Hunt Trust on the principal is June 15, 1997. The stated acquire approximately one-half of the com- Estate at a cost of $48 million. Cost for the purpose of the loan was the sale of REO. The mercial reserve tracts within Cinco Ranch. building and property totalled more than $65 Loan Workout Committee for REO sales ap- USAT was expecting a profit of $26,482,000 as million. Additional collateral securing the proved the sale and loan to the partnership it shared the joint venture’s profits. The note included a tract of land in Tarrant on May 7, 1987. The structure of the trans- joint venture proposed was to be between County, Texas, of 57.9374 acres and stock cer- action called for Woodcreek on the Bayou USAT or an affiliate and Dempsey Watson, tificates for 300 shares of National Tubular Phase II Apartments Partnership to pur- with 75% of income gain and loss attributed Systems, Inc., a privately held company con- chase the property by assuming a note with to USAT and 25% to Watson. Watson was to trolled by Crest Holdings, Inc., a Cayman Is- a remaining balance of $1,665,000 and placing be liable for his pro rata share up to a max- land corporation controlled by Isaac Stein. a second lien against the property for imum liability of $1 million. The memo- The loan performance history on this $203,000. The terms of repayment provided for randum detailing the joint venture also out- transaction was excellent until 1988 due to interest only in years 1 through 5 and prin- lined that Watson would manage the day-to- the fact that $9,083,251 were held in escrow by cipal and interest in years 6 through 10. Am- day affairs of the venture but that ulti- USAT on which to draw the interest pay- ortization was to be on a 30-year schedule mately all decisions in connection with the ments. Remington Partners, however, did with a balloon payment due at the end of the venture would be made by USAT. Dempsey not repay the principal in a timely manner. A lawsuit was filed and then settled out of tenth year. Interest was to be set for 3% in Watson’s annual management fee was to be court on December 21, 1988. Releases on the year 1 and increase by 1% in years 2 through $100,000, plus an additional 5% of profits gen- underlying promissory note and deed of trust 5. Then beginning in year 6, the interest rate erated by the venture. The interest rate on were executed by USAT on December 22, would go to 10% and remain at that rate the note was to be the prime interest rate, 1988. until final payment. plus 2% with a maximum interest rate of The property was appraised on June 23, 15%. E. Couch Mortgage 1986, by William L. Behas, M.A.I.—S.R.P.A. An appraisal dated March 17, 1986, appears The background of the Couch Mortgage of Behas & Associates. The land was valued in the files from Murphy, Kirby & Associ- transactions is described in detail in the at $912,235, and the improvements after reha- ates. The appraisal was for the market value BS&S Report of September 20, 1991 to the bilitation were appraised to be valued at of the fee simple title to 379.83 acres of va- FDIC. The September 20, 1991 Report focuses $1,462,765 for a fair market value of $2,375,000. cant land as of February 11, 1986, and a valu- only on the liability of third parties for the Rehabilitation of the improvements, how- ation was placed on the property of $40 mil- Couch Mortgage losses. A case could cer- ever, were expected to total $595,000, leaving lion. tainly be made that the officers and direc- a fair market value at the time of the ap- The loan in this transaction was a non-re- tors of USAT were negligent in entering into praisal of $1,780,000. The appraisal was done course loan. In a file at the MCO Plaza of- and monitoring the Couch transactions. In on behalf of United Savings Association of fices of USAT, it is noted that Dempsey Wat- the course of investigating the Couch trans- Texas. son is the son-in-law of Walter Mischer, who actions, we have found no evidence of wrong- 12. Northpoint Square. The date of the loan is president of the Mischer Corporation, doing or complicity on the part of any USAT is July 26, 1987, and the maker on the note is which was one of the joint venturers in Cinco officers, directors or employees. Northpoint Square Apartments Partnership, Ranch. No wrongdoing can be presumed from If the FDIC decides to pursue its claims Paul C. Jacobson, general partner. There these facts alone, but once again, it reflects against third parties for the Couch Mortgage were no guarantors for this transaction. The USAT’s continued involvement with ‘‘high losses, then it would seem to be counter- face amount of the note is $3,105,000 and the rollers’’ within the Houston economy. productive to at the same time allege that due date of the principal is June 26, 1997, the 14. Remington Partners. Remington Part- USAT officers and directors were negligent last payment being a balloon payment. The ners acquired the Remington Hotel from with regard to the transactions. In fact, it is loan was approved by the Loan Workout Rosewood Hotels, Inc., in 1985. Seventy per- highly likely that the third parties sued will Committee, and the transaction was struc- cent of the purchase money was borrowed attempt to raise as a defense the negligence tured so that Northpoint Square Apartments from United Savings Association of Texas, of USAT’s officers and directors. Partnership would purchase the property for which placed a first lien against the hotel. Because of the lack of evidence of affirma- $3,405,000, which included the partnership’s Makers on the note were Remington Part- tive wrongdoing and the much greater likeli- promissory note for $3,105,000. The terms of ners, a Texas joint venture, William T. hood that damages could be recovered from repayment provided for interest only in Criswell, IV, venturer, Waverly Development third parties, we do not recommend initi- years 1 through 5, and principal and interest Limited Partnership, a venturer, by I.S.R.P. ating litigation against officers and direc- in years 6 through 10. Amortization was to be Limited Partnership, by Isaac Stein, sole tors of USAT for the Couch losses. It is pos- on a 30-year schedule with a balloon pay- general partner. The promissory note is in sible that some of those individuals could be ment due at the end of the tenth year. Inter- the principal amount of $25,300,000 and was joined as third-party defendants if FDIC elects to sue others for the Couch losses. est was to be set for 3% in year 1, and in- for a term of three years at a fixed rate of crease by 1% in years 2 through 5. Then be- 14% interest. Interest payments were to be F. Authorization of Dividend to UFGI ginning in year 6, the interest would go to made the first day of every third month, be- In 1984, USAT sold several branches which 10% and remain at that rate until the final ginning August 1, 1985, with accrued interest resulted in significant increase in capital. payment. and the principal being due on May 13, 1988. According to Mary Mims (‘‘Mims’’), oper- The property was appraised on February To further assure that note payments were ations manager of the treasury department 18, 1987, by William Murphy, M.A.I., made, an escrow fund was established in the in 1984, the branches were sold because the S.R.P.A., of Murphy, Kirby & Associates and amount of $9,083,251. This amount rep- previous merger created a branch overlap- was valued at $2,500,000. An analysis of credit resented the interest payments due between ping situation. However, an October 1984 did not appear in the materials provided for May 13, 1985, and May 13, 1988. USAT was al- Texas Business article regarding Hurwitz our review; but shortly after the sale closed, lowed to draw upon the escrow fund when states ‘‘Hurwitz has devised an innovative the partnership fell behind in its payments each of the interest payments became due. plan to sell off up to 48 bank branches (in- and remained so until foreclosure in 1988. An appraisal of the Remington Hotel was cluding deposit liabilities and all branch USAT made loans to various entities which, conducted by Edward B. Schulz & Company. properties). If he pulls it off, the deal would like the borrower in this instance, were con- The purchase price of the Remington Hotel augment United’s net worth by about $150 trolled by Allan P. Jacobson, Gene P. was $32 million, and Schulz appraised the million, more than doubling equity in one Jacobson, Paul C. Jacobson, and Evan K. property at $33 million. Schulz stated that shot.’’

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00096 Fmt 0666 Sfmt 0634 E:\CR\FM\A20DE8.234 pfrm07 PsN: E20PT1 December 20, 2001 CONGRESSIONAL RECORD — Extensions of Remarks E2435 The branches were sold to Independent and the names mentioned list providing in- templated. We do not feel that we have American Savings. According to Crow, Inde- formation on every player in the network, as strong proof of misappropriation of USAT pendent American paid a ‘‘ridiculously high well as continual updates. It is our under- funds through payment of affiliates’ ex- price’’ for the USAT branches—15% pre- standing that these sorts of claims against penses. However, the outstanding amount mium. According to Wolfe, when Inde- Hurwitz will be handled by the task force should be recouped and we understand these pendent American purchased the branches, it and this report will make no recommenda- claims are being separately handled in nego- assumed liabilities of $1 billion in deposits. tion on those claims. tiations with UFGI. In order for Independent American to do so, B. Dividend to UFGI V. CLAIMS AGAINST THIRD PARTIES USAT provided it an asset of cash flow bonds It is our understanding that the claim A. Accountants with a coupon rate at 10%. Since the market against UFGI for payment of the dividend is price was at a yield of 15%, the spread be- An investigation of the potential liability being separately handled in negotiations of the auditor of USAT was conducted by tween the two was a ‘‘paper gain’’ in fair with UFGI. market value. Although the gain was in BS&S. The results of our investigation is in- paper, it had time value. The total ‘‘paper C. Tax Reform Claim cluded in a Report submitted to the FDIC on gain’’ was $90 million. USAT issued a cash We understand the tax refund claim is September 20, 1991. The Report focused on flow bond to Independent American Savings being separately handled in negotiations the liability of USAT’s auditor, Peat, which contained five series, labeled A–E, in with UFGI. Marwick & Mitchell (now known as KPMG the amount of the total customer balances. D. Lack of Capital Infusion Peat Marwick), for general auditing neg- As mortgages under the bond paid down, the MCO Holdings indicated in several SEC fil- ligence issues, as well as issues relating di- proceeds of the collateral were paid to the ings that it and Federated filed an applica- rectly to the Couch Mortgage transactions. bond. Crow stated that the objective of the tion with the Federal Home Loan Bank That Report also included our opinion on the sale was to build equity. Although the sale Board (‘‘FHLBB’’) on June 29, 1983, for ap- liability of Couch Mortgage’s auditor, Ernst did not result in any cash, it created a proval to acquire more than 25% of the out- & Whinney (now known as Ernst & Young), ‘‘paper gain’’ of approximately $90 million. standing shares of common stock in order to for its failure to disclose the ongoing fraud Following the branch sale to Independent become savings and loan holding companies. being committed by Couch. Please refer to American, a $32 million dividend payment The application was approved by the FHLBB the September 20, 1991 report for detailed was made to UFGI. The dividend payment on December 6, 1984, subject to a capital in- conclusions and litigation recommendations. was handled by C.E. Bentley, Jim Pledger fusion requirement. For as long as MCO and B. Lawyers and Gerald Williams. The regulators ap- Federated controlled USAT, both entities Potential professional liability claims proved a dividend for a certain percent of the were to contribute their pro rata share of against attorneys were considered in connec- amount, if the institution was profitable. Ac- any additional capital infusion required for tion with all of the other investigations cording to Crow, USAT was profitable in 1985 USAT to maintain its regulatory net worth. mentioned in this report. Attorney liability solely because of the branch sale. The If in excess of 50% of the voting shares of issues have been addressed in the September FHLBB was upset because it was not made UFGI were acquired by MCO and Federated, 20, 1991 report on Potential Professional Li- aware, at the time of the regulatory ap- they were required to contribute 100% of any ability Claims, as well as in the Chapel proval, of the utilization for the capital. additional capital. Subsequent to the appli- Creek Ranch litigation. In the course of in- Mims stated in her interview that the cation approval, MCO Holdings and Fed- vestigating real estate and loan trans- treasury department maintained the divi- erated held discussions with the FHLBB con- actions, securities activities, and other di- dend in an USAT certificate of deposit. She cerning the possible modification of the con- rector and officer liability issues, the possi- added that had the funds from the branch dition. bility of attorney negligence was explored. sale not been available, based on the cash The FHLBB granted MCO and Federated Other than what has been discussed in ear- flow at the time, UFGI would have been extensions in order to acquire additional lier reports, we did not discover any appar- bankrupt within one to two years after the shares of UFGI’s common stock. The exten- ent instances of attorney malpractice. USAT merger. The funds were utilized by UFGI to sion was granted so that MCO, Federated and utilized a number of different law firms for begin its equity arbitrage activities and to the FHLBB could continue discussions re- its legal work, the two who received most pay the PennCorp debt from the 1983 merger. garding the modification of the capital infu- work being the Houston firms of Mayor, Day Because this dividend payment was made sion guarantee. The last extension granted & Caldwell and Schlanger, Cook, Cohen, three years before the institution was closed by the FHLBB expired on December 22, 1987. Mills & Grossberg. No law firm seemed to act and because it was approved by the appro- The MCO 10K states that it had no intention as ‘‘general counsel’’ for the institution. It priate regulatory agency, we believe it will to infuse capital into UFGI at the time of appears from USAT’s records that Arthur be difficult to prove gross negligence on the the filing. Also, it acknowledges that UFGI Berner, in-house general counsel for USAT, part of the directors. It would be less dif- agreed to maintain USAT’s capital require- gave legal advice regarding the most strong- ficult to prove a lack of prudence on the part ments above the minimum level established ly criticized activities of the institution, in- of the officers, but we cannot estimate the by the FSLIC. However, it stated that UFGI cluding the golden parachute employment probability of success on the liability issues did not have sufficient assets to contribute agreements, the 1988 executive bonus plan, at greater than fifty percent (50%). We are capital to USAT in order to maintain its the inter-company receivable between USAT also unable to make an assessment of actual minimum capital requirement. and UFG, and the failure of UFG to infuse damage to the institution from payment of The Federal Home Loan Bank of Dallas additional capital into USAT. the dividend. Certainly, additional capital- (‘‘FHLB-Dallas’’) directed the UFGI Board of C. Appraisers ization may have allowed the institution to Directors, on May 13, 1988, to infuse capital slow its gains trading activity, but we can- into USAT. Although the directors acknowl- Other than the Chapel Creek Ranch litiga- not make an estimate of the possible dam- edged the receipt of the letter, capital was tion and the Couch Mortgage transactions, ages at this time. not infused and UFGI did not respond to the our investigation has not revealed any ap- IV. CLAIMS AGAINST HURWITZ AND UFGI letter. On December 8, 1988, the FHLB-Dallas parent problems relating to appraisers in- A. Corporate Raider Scheme again directed UFGI to infuse additional eq- volved in loan and real estate investment transactions. There were numerous instances The primary conclusion we have drawn uity capital into USAT. UFGI did not make of USAT failing to obtain appraisals in viola- from our investigation of the securities area such infusion. According to Connell, Hurwitz tion of the regulations, and a few instances is that Charles Hurwitz used USAT as a deep will assert that he infused approximately of appraisals that did not comply with Rule pocket or source of funds for favors to facili- $100 million of capital into USAT as a result 41b. However, these issues go more to the tate his own corporate raider activities. We of the Weingarten Realty transactions. negligence of officers and directors in ap- have outlined our theories and the available This claim is being pursued separately by proving transactions with insufficient or no documentation in prior recommendations, other fee counsel. appraisals. In summary, other than what has including the Interim Report of April 29, 1991. E. Advances by USAT for the Benefit of Affili- been previously reported, we did not find any In our investigation we were unable to find ates appraiser errors or omissions. evidence of securities transactions which di- We reviewed the payments made by USAT rectly benefitted Hurwitz, such as purchases on behalf of UFGI and other affiliates and D. Real Estate Brokers of Hurwitz entities’ junk bonds or equities. found evidence of: USAT entered into contracts with various We do believe, however, that Hurwitz, to- a. payment of salaries and bonuses by real estate brokers who were employed to gether with a group of corporate raiders, USAT when a substantial part of the em- dispose of real estate owned by USAT. These traded favors and participated in a scheme or ployee’s job included work for UFGI or other contracts were reviewed, as were the lists of conspiracy to manipulate the market and Hurwitz entities, such as Ron Heubsch; properties on which the realtors earned com- that USAT was used by Hurwitz in whatever b. advances of affiliates’ expenses which missions. No wrongdoing was discovered, al- way was necessary to make that scheme were carried on USAT’s books as receivables though it was noted that many of USAT’s work. We have been working with the Drexel but remained unpaid. deals seemed to be ‘‘broker-driven,’’ with the task force for over a year and have provided There is evidence that UFGI repaid these broker dictating the terms of the trans- them with substantial analyses and docu- advances late in 1988 and we were consist- action. Again, this reflects on the negligence mentation, such as the quid pro quo analyses ently told that repayment was always con- of the officers and directors in failing to

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00097 Fmt 0666 Sfmt 0634 E:\CR\FM\A20DE8.236 pfrm07 PsN: E20PT1 E2436 CONGRESSIONAL RECORD — Extensions of Remarks December 20, 2001 maintain and enforce prudent lending prac- which Hurwitz is currently clearcutting, a ging in the virgin groves, but the stays are tices. No litigation is recommended against process in which every living thing is cut only temporary. Unless there is a serious brokers. down. All to pay off a junk bond debt! It’s legislative effort to acquire this forest, E. Securities Industry great that we’re going to protect this land Hurwitz will assure that all the knowledge from Hurwitz, but we don’t want federal dol- and wonder inside this area will be lost for- Early in the investigation we thoroughly lars to go into his pocket while he owes the ever. reviewed the role of Solomon Brothers in the taxpayers $548 million. Coincidentally, sale of MBS products to USAT. Mortgage- Hurwitz is asking for more than $500 million backed securities were developed and per- EARTH FIRST!, for the Headwaters Forest redwoods. So if fected by Lew Ranieri at Solomon Brothers Garberville, CA. your agency can secure the money for his and the firm had a virtual monopoly on the failed S & L, we the people will have the Rally Today, Monday at FDIC in DC & NY to product until 1986 when other firms began to funds to buy Headwaters Forest. Debt for na- Demand that Redwood Raider Hurwitz Pay lure its traders away and develop their own ture. Right here in the U.S. That’s where you S & L Debt programs. come in. CHAIR OF HOUSE BANKING COMMITTEE SENDS Several people told us that the initial MBS Go get Hurwitz. He and people like him LETTER ASKING FDIC TO PURSUE HURWITZ portfolio was sold to United as a sure thing. have been traitors to this country, ripping Animals and activists from the redwood We were told there was inadequate expla- apart the very economic and environmental forest will rally outside the Headquarters of nation of the risk. Unfortunately, the writ- fabric of this country for personal gain. Now the Federal Deposit Insurance Corporation ten documents do not bear out this claim, our nation is on the verge of collapse, thanks (FDIC), 550 17th Street NW in Washington, and we were unable to find any evidence of to guys like Hurwitz. For five years your DC this Monday, November 22 at 1 pm to in- misrepresentations or misleading statements agency has had this $548 million dollar claim sist that an existing $548 million claim other than the self-serving statements of against Hurwitz’s United Financial Group, against redwood raider Charles Hurwitz’s Crow and others. In light of this and the fact the holding company for United Savings As- failed S & L be vigorously pursued before the that USAT had been sold to a Ranieri part- sociation of Texas. The statute of limita- statute of limitations runs out at year’s end. nership, in consultation with the FSLIC at- tions runs out at the end of 1993. He can ac- A companion rally will take place at the torney at the time, we did not pursue the in- tually get away with this robbery if your FDIC’s public relations department in New vestigation any further. agency doesn’t act soon. Justice delayed is York at 452 Fifth Avenue at 10 am. The ani- We also reviewed the relationship of USAT justice denied. After five years of waiting it’s mals will be delivering a memorandum to and Drexel Lambert and Bear Stearnes & Co. time to say: ‘‘Charley Hurwitz, your time is FDIC employees, including Chairman An- The Drexel relationship was referred to the up!’’ drew C. Hove, Jr., asking that the man who task force as described above and we found Here’s what you can do: Write and talk to has been hacking down their ancient red- no irregularities in the transactions with your policy makers at the FDIC, in par- wood homes be indicted for his treachery Bear Stearnes & Co. ticular your Chairman, Andrew C. Hove, Jr., against the American taxpayers. VI. SUMMARY AND PROBABILITIES OF SUCCESS and ask them to re-prioritize your case In a separate but related development, A. Claims Against Officers and Directors of against Hurwitz’s United Financial Group. Rep. Henry Gonzalez (D–San Antonio), Chair- USAT Talk amongst yourselves, too. Offer new, man of the House Banking Committee, faxed In summary, we believe the following creative strategies of protecting the econ- a letter last Friday to FDIC Chairman Hove, claims could be made against the directors omy and ecology of this precious land of calling on the agency to act on the claim and controlling officers of USAT: ours. Write to your Congressional Represent- against Hurwitz, which has languished for Gross negligence—failure to institute and ative and Senators in Washington, DC and five years without any criminal or civil ac- require compliance with prudent lending ask them to support the Headwaters Forest tion being pursued. Hurwitz, a junk bond practices; violation of federal regulations re- Act (HR2866). Lastly, we’d like to invite you raider who tripled the logging rate of the Pa- lating to lending and investment trans- to come out to the redwoods and see trees cific Lumber Company after his MAXXAM actions; failure to implement policies or su- taller than you office building and as wide Corporation took it over in 1985 and incurred pervise the securities investment depart- around as a room in your house. Give us a a $750 million debt, is also responsible for the ment of the institution; and allowing the in- call at 707/468–1660 in California. We’d love to failure of United Savings Association of stitution to.... show you around the magnificent redwood Texas (USAT). USAT cost the taxpayers $1.6 forest, as well as show you the appalling billion to bail out in 1988, making it Amer- clearcuts Hurwitz is performing. Don’t delay. ica’s fifth largest failed S & L according to DOCUMENT E The junk bond traitors must be brought to Fortune. The $548 million claim stands MEMORANDUM justice. Debt for Nature and Jail for Hurwitz. against USATs holding company, United Fi- To: All the good, hardworking employees of Thank you. nancial Group, and stems from the failure of the FDIC. Hurwitz to fulfill an agreement with the FDIC to maintain a minimum net worth of From: The people of the United States of NATIONAL AUDUBON SOCIETY, that amount in the bank. America. Washington, DC. This activity takes place in light of the Re: Redwood Forests and Failed S & L’s. The National Audubon Society strongly Headwaters Forest Act (HR 2866) moving Date: November 22, 1993. supports the Headwaters Forest Act, H.R. smoothly through the House of Representa- You may not be aware that there is a di- 2866, introduced by Dan Hamburg (D–CA) and tives. The bill, introduced by California Con- rect connection between the Savings and Pete Stark (D–CA), authorizing the purchase gressmen Dan Hamburg and Pete Stark, Loans, the FDIC and the clearcutting of of 44,000 acres of Redwood forest to be added along with over 90 co-sponsors, would au- California’s ancient redwoods, but there is to the Six Rivers National Forest in North- thorize the federal government to purchase and we’d like to fill you in and ask for your ern California. This legislation would ac- 44,000 acres of redwood forest. It has the help. It just so happens that a man named quire the largest unprotected ancient red- thumbs up from President Clinton. However, Charles Hurwitz, who took over the Pacific woods groves in the world. Home to a great Earth First! activists, who originated this Lumber redwoods in 1985 through a Drexel array of species, from mountain lion and issue in 1986 by hiking, mapping, naming and Burnham junk bond buyout, also was respon- black bear to giant salamanders and flying promoting the Headwaters Forest, are con- sible for the collapse of United Savings Asso- squirrels, the Headwaters Forest is composed cerned that Charles Hurwitz could receive ciation of Texas (USAT). In fact, Drexel- of gigantic trees up to 2000 years old. Also federal dollars for the ancient redwoods be- Burnham helped Hurwitz take over 200,000 found in its interior recesses are several fore he has paid back his S & L debt to the acres of magnificent redwood forest in ex- threatened and endangered species including American taxpayers. ‘‘We seek justice for change for Hurwitz’s United Savings buying spotted owls, marbled murrelets, goshawk the American people as well as justice for over billion dollars’ worth of Drexel’s junk and a host of salmon species. bonds. The bank later failed and the red- This land had been managed on a sustain- the forest animals,’’ said Darryl Cherney, a woods are still crashing. Your agency did able forestry basis by the Pacific Lumber Co. Northern California Earth First! organizer outstanding work in nailing Drexel’s Michael until a recent takeover by Charles Hurwitz, who has traveled to Washington to organize Milken on this very scam. The FDIC has CEO of Maxxam. In order to pay off junk this rally. ‘‘Hurwitz’s $500 million asking even gone so far as to state that Hurwitz’s bonds used to buy off the lands, Maxxam has price for Headwaters conveniently approxi- bank owes the taxpayers $548 million for more than doubled the cut of the ancient mates his S & L debt. With the legality of misappropriating depositors’ funds. But for redwoods. Over 40,000 acres have been liq- the PL takeover and the S & L failure in some reason, the FDIC hasn’t gotten around uidated already. HR 2866 provides for a res- question our . . . to issuing criminal or civil charges against toration program and gives full protection to The Failure of United Savings Association of Charles Hurwitz for his end of this devil’s the old growth and wilderness designation Texas (USAT): Fact Sheet bargain. for the 3,000 acre Headwater Grove. 1. The FDIC has an outstanding claim Meanwhile, back in Washington, DC, the Please write your representative today and against United Financial Group, holding U.S. Congress has been kind enough to intro- ask him/her to support HR 2866. Maxxam is company for the failed USAT, for $548 mil- duce a bill, the Headwaters Forest Act, beginning to log off this great tract of giant lion dollars. (United Financial Group 10–K which would protect 44,000 acres of redwoods redwoods; Court injunctions have halted log- Report, year ending Dec. 31, 1992, p. 1 and

VerDate 112000 06:25 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00098 Fmt 0666 Sfmt 0634 E:\CR\FM\A20DE8.238 pfrm07 PsN: E20PT1 December 20, 2001 CONGRESSIONAL RECORD — Extensions of Remarks E2437 Wall Street Journal, ‘‘United Financial with respect to 300,000 shares of the common ings with Charles Hurwitz, the Houston- Found Liable by FDIC,’’ May 22, 1992). stock of UFG. In the event MCO does not ex- based entrepreneur who controls Maxxam 2. Five years have passed since this claim ercise the option during a 30-day period com- Group, a conglomerate that’s into alu- was asserted in 1988, and while the FDIC has mencing July 1, 1988, MCO has agreed to minum, redwood and real estate. Although extended the statute of limitations through grant Drexel Burnham an option to sell such Kaiser Aluminum is Maxxam’s biggest hold- tolling agreements, the current statute of shares to MCO during a 30-day period com- ing, Hurwitz is best known for the 1986 take- limitations ends on December 31, 1993 (UFG, mencing August 1, 1988. The purchase price over of Pacific Lumber, the first major hos- 10–Q Report, Quarter ending June 30, 1993, p. in either event is $8.59 per share. MCO paid a tile takeover funded by junk bonds. 6). fee of $683,000 to Drexel Burnham for the pur- Hurwitz’s name is also immortalized in 3. When it was seized in 1988 by the FDIC, chase option. Two of UFG’s eight directors newspaper libraries because he’s constantly USAT was a wholly-owned subsidiary of are also directors of MCO. UFG is a savings attacked for allegedly devastating Pacific UFG, whose controlling shareholders at the and loan holding company and conducts Lumber’s redwood forests to pay off the time of the collapse were Charles Hurwitz- business primarily through its wholly-owned bonds. But today we’re talking about deposit run companies MAXXAM, MCO, and Fed- subsidiary, United Savings Association of insurance, not trees. erated Development Corp. Also, Drexel Texas (‘‘USAT’’). In addition, other subsidi- One part of the deposit insurance bureauc- Burnham Lambert was a 9% shareholder aries of UFG provide mortgage lending, rein- racy is hot to sell Maxxam some properties (Washington Post, ‘‘Thrift Regulations Slip- surance and venture capital services. The seized from dead savings and loan associa- ping . . .’’ by Allan Sloan, 4/16/91; MAXXAM carrying value of MCO’s investment in tions. Another part of the bureaucracy is Prospectus, 1988; and FDIC vs. Milken, 1/18/ UFG’s common stock and Series D Stock chasing United Financial Group, a company 91, pp. 82–84). was $12.7 million at September 30, 1987. The of which Hurwitz is the biggest stockholder 4. From 1985 to 1988, USAT purchased over closing price of UFG’s common stock on De- and the former chairman, to recovery part of $1.3 billion worth of Drexel-underwritten cember 31, 1987 was $7/16 per share. the $2 billion or so it cost to bail our deposi- junk bonds. During that same period of time, Federated owns approximately 28.2% of the tors of a United-owned S&L that failed in according to an FDIC lawsuit against Mi- MCO Common Stock and 91.3% of the MCO 1988. chael Milken, ‘‘the Milken group raised Class A Preferred Stock. On June 29, 1983, Let’s start with the Resolution Trust about $1.8 billion of financing for Hurwitz’s MCO and Federated filed an application with Corp., which liquidates dead S&Ls. The RTC, takeover ventures,’’ which included the 1985 the Federal Home Loan Bank Board (the which had bad loans for foreclosed properties takeover of Pacific Lumber Company, the ‘‘FHLBB’’) for approval to acquire more than up the kazoo, is doing something intelligent world’s largest private owner of old growth 25% of the outstanding shares of common by trying to sell them in bulk. Last month, redwood (FDIC vs. Milken, 1/18/91, pp 82–84). stock of UFG and thereby become savings the RTC announced that Maxxam had put in 5. The failure of USAT constituted the and loan holding companies. Such applica- the highest bid, $130.1 million in cash, for a fifth largest failed S & L Bailout, as of 1990, tion was approved by the FHLBB on Decem- batch of foreclosed properties and stinko costing the taxpayers $1.6 billion (Fortune, ber 6, 1984, subject to compliance with sev- loans. The deal is scheduled to close by June Sept. 10, 1990). eral conditions, including that so long as 16. 6. Hurwitz has been sued by the Securities MCO and Federated control USAT, they But at the same time that the TRC wants & Exchange Commission in 1971 for alleged shall contribute their pro-rate share (based to sell these things to one Hurwitz company, stock manipulation; charged by New York on their holdings of UFG) of any additional the Federal Deposit Insurance Corp., a sister State regulators in 1977 with looting Summit infusion of capital that may be necessary for agency run by the same board that controls Insurance Co.; sued by investors for alleged USAT to maintain its regulatory net worth. the RTC, is trying to collect damages from fraud in the takover of Pacific Lumber; sued In addition, if MCO and Federated acquire in the United Financial Group, owner of the by U.S. Labor Dept. and employees for in- the aggregate in excess of fifty percent of the failed United Savings Association of Texas. vesting PL’s pension fund with now failed- voting shares of UFG, they would be required Although Hurwitz didn’t technically control Executive Life Insurance in return for their to contribute one hundred percent of any ad- United Financial or its S&L, he was chair- junk-bond financing of the PL takeover; sued ditional capital that may be required to man of United Financial until 10 months be- by MAXXAM shareholders for a land swindle maintain the regulatory net worth of USAT. fore the S&L failed. He remains United Fi- in Rancho Mirage, CA; and sued (8 times) by Subsequent to the approval of the applica- nancial’s biggest shareholder, which means EPIC of Garberville, CA and Sierra Club for tion, MCO and Federated held discussions he had more than a little to say about how violations of California Forest Practices Act; with the FHLBB concerning the possible the place was run. etc., etc., etc. (Wall Street Journal, ‘‘For modification of the condition relating to the The FDIC wants United Financial to fork Takeover Baron, Redwood Forests Are Just maintenance of USAT’s regulatory net over some dough because, its says, United One More Deal,’’ August 6, 1993). worth. Financial agreed to keep the now-defunct The FHLBB originally granted MCO and United Savings Association of Texas ade- Federated 120 days from December 6, 1984 quately capitalized. United Financial denies MAXXAM GROUP INC. within which to consummate the acquisition that United Savings was closed at a stated Los Angeles, California, February 11, 1988. of additional shares of UFG’s common stock. cost to the deposit insurance fund of $1.37 Interest of MCO in MAXXAM This period was extended by the FHLBB in billion and an actual cost that’s probably MCO owns a controlling interest in order to provide sufficient time for MCO, much higher. MAXXAM. See ‘‘Information Concerning Federated and the FHLBB to continue dis- United offered the FDIC $6.25 million cash MAXXAM—Business of Maxxam.’’ cussions regarding the requested modifica- and a note that could produce $4 million more. The idea was to make the FDIC go Interest of MCO in United Financial Group, tion of net worth guarantees. The last exten- away, reorganize United Financial and use Inc. sion granted by the FHLBB expired on De- cember 22, 1987. Federated and MCO antici- the tax loss created by the seizure of United MCO owns 1,104,098 shares of UFG’s com- pated submitting a new application with up- Savings to shelter income from new and mon stock (approximately 13.5% of the out- dated financial information, while con- profitable acquisitions. The proposal settle- standing shares) which is acquired in 1982 tinuing to discuss with the FHLBB the pos- ment was canceled by the FDIC, according to and 1983. Federated owns 801,941 shares of sible modification of the condition relating United Financial. UFG’s common stock (approximately 9.8% of to the maintenance of USAT’s regulatory In a logical world, you try not to do busi- the outstanding shares). Pursuant to a rights net worth. Although the instruments gov- ness with people who have already cost you offering made by UFG to the holders of its erning MCO’s indebtedness do not prohibit or money. As they say. ‘‘Fool me once, shame common stock, MCO and Federated pur- restrict MCO from infusing capital into UFG, on you. Fool me twice, shame on me.’’ And chased 688,824 and 47,702 shares, respectively MCO has no intention of doing that at the in fact, the S&L bailout bill contains a pro- (approximately 91.2% and 6.3% respectively, present time. vision that seems to bar anyone who has of the outstanding shares), of UFG’s Series C UFG files periodic reports with the Com- stiffed deposit insurance funds for more than Convertible Preferred Stock (‘‘Series C mission and its common stock is traded in $50,000 from doing business with the agencies Stock’’) in 1984. Each share of Series C Stock the over-the-counter market and reported on administering the bailout. was convertible into two shares of UFG com- the NASDAQ reporting system. However, the law, as interpreted by RTC mon stock at any time after June 15, 1987. spokesman Stephen Katsanos, is that anyone Effective May 4, 1987, UFG entered into an who cost the deposit insurance agencies agreement with MCO and Federated whereby THRIFT REGULATORS SLIPPING AND TRIPPING $50,000 or more can’t be a contractor to the MCO and Federated exchanged their 736,526 OVER ONE ANOTHER’S FEET bailout folks, but it can buy property from shares of Series C Stock for an equal amount (By Allan Sloan) them. That apparently includes Hurwitz, of new Series D Convertible Preferred Stock There are days when you wonder whether ‘‘Absent his being charged with wrongdoing, (‘‘Series D Stock’’) issued by UFG. The Se- the federal government’s right hand knows his money is good,’’ Katsanos said. Katsanos ries D Stock has the same conversion and what its left hand is doing—or even whether said that the RTC knew about Hurwitz’s in- other rights as the Series C Stock, except the government has two left feet, which is volvement with United Financial, but that that it is convertible at any time after June why it keeps tripping over itself. was no reason not to take his money. 15, 1988. In December 1985, MCO entered into Consider, if you will, the federal deposit in- Maxxam spokesmen were more than a lit- an option agreement with Drexel Burnham surance bureaucracy’s schizophrenic deal- tle upset when they heard that I planned to

VerDate 112000 06:25 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00099 Fmt 0666 Sfmt 0634 E:\CR\FM\A20DE8.240 pfrm07 PsN: E20PT1 E2438 CONGRESSIONAL RECORD — Extensions of Remarks December 20, 2001 tie Hurwitz’s pending deal with the RTC to Hurwitz, (stemming from the failure of uals against whom we would expect to assert the failure of United Savings. One spokes- United Savings Assn. of Texas) for 44,000 claims. In addition to the claims asserted man stressed that Hurwitz owned only 23.3 acres of redwood forest owned by a Hurwitz- against the group of defendants, Hurwitz percent of United Financial and wasn’t an of- controlled company. We advised Parrish would be sued individually for failure to ficer of the failed S&L. Regulators couldn’t we’re not aware of any formal proposal of cause compliance with certain net worth possibly have been unhappy with Hurwitz, such a transaction. However, we noted that a maintenance (NWM) agreements. the spokesman said, because when United claim can be satisfied by relinquishing title Recommendation: That the FDIC, as re- Savings was failing, the regulators asked an- to assets, assuming there is agreement on ceiver of United Savings Association of other Hurwitz company—Maxxam—to put in their value. We didn’t go any further with Texas (USAT), Houston, (with assets of $4.6 a bid. (A competing bidder won.) Parrish, but Dough Jones notes that even if billion and loss to the FDIC of $1.6 billion) Maxxam spokesman said that the uncon- Hurwitz satisfied our claim by giving us the authorize suit for approximately $300 million ventional investments—among them junk redwoods, it wouldn’t result in what Earth in damages against the proposed defendants bonds and a part ownership in a Houston taxi First! (the folks who demonstrated in front identified on Exhibit A. company—that Hurwitz recommended made of the main building last month) apparently In our view, Hurwitz and the other pro- money for United Savings. He also said that is proposing, i.e., that we then deed the red- posed defendants were grossly negligent. the S&L failed not because of wrongdoing, woods property to the Interior Department. However, we also estimate a 70% probability but because many of its borrowers lost their That would require some extensive legal that most or all of the conventional claims jobs and couldn’t pay their mortgages. ‘‘This analysis and, since any claim we might as- that could be made in the FDIC’s case would is a human tragedy caused by economic con- sert against Hurwitz would be a FRF matter, be dismissed on statute of limitations ditions,’’ he said. would likely entail Treasury Department grounds. Hurwitz’s failure to cause compli- Interestingly enough, the RTC had a concurrence. ance with the NWM agreements has a better chance to take a $181.5 million Maxxam note probability on the statute of limitations containing escape clauses, but opted instead issue, but there are numerous obstacles to DOCUMENT G for $130.1 million cash. So, you see, deposit successful prosecution of that claim. None- insurance regulators are indeed uncoordi- Maxxam, Inc., is a publicly traded com- theless, we believe the litigation risks are nated. But I never said they were stupid. pany with market capitalization, as of No- worth taking because of the egregious char- vember 16, 1993, of $288 million and total as- acter of the underlying behavior in this case sets of $3.5 billion. We are also reviewing a which caused enormous losses, and to further DOCUMENT F suggestion by ‘‘Earth First’’ that the FDIC our ongoing efforts to shape the law evolving FEDERAL DEPOSIT trade its claims against Hurwitz for 3000 in this area. INSURANCE CORPORATION, acres of redwood forests owned by Pacific I. Background Washington, DC, December 3, 1993. Lumber, a subsidiary of Maxxam. USAT was placed into receivership on De- Memo to: Chairman Hove. cember 30, 1988. After a preliminary inves- From: Alan J. Whitney, Director. DOCUMENT I tigation into the massive losses at USAT, Subject: Significant Media Inquiries and Re- the FDIC negotiated tolling agreements with lated Activities, Week of 11–29–93. Jack, I thought about our conversation REGULATORY CONSOLIDATION: Several yesterday. My advice from a political per- UFG, controlling person Hurwitz and ten news organizatons have asked what the spective is that the ‘‘C’’ firm is still politi- other former directors and officers of USAT/ FDIC’s position is on the agency consolida- cally risky. We would catch less political UFG who were either senior officers or direc- tion proposal unveiled last week by Treas- heat for another firm, perhaps one with some tors that were perceived as having signifi- ury. They were told you believed that with environmental connections. Otherwise, they cant responsibility over the real estate and Board appointments imminent, it would be might not criticize the deal but they might investment functions at the institution. In May 1994, after a series of meetings with inappropriate to take an agency position argue that the firm already got $100 million the potential defendants and the exchange of until the full board is in place. and we should spread it around more. considerable documents and other informa- THRIFT CONVERSIONS: Crain’s New York Those are just my unsolicited thoughts. tion, we prepared draft authority to sue Business, Philadelphia Inquirer and American memorandum recommending that we pursue Banker newsletters inquire about the thrift DOCUMENT L claims against Hurwitz and certain USAT mutual-to-stock conversion policy that the ATTORNEY CLIENT PRIVILEGE former officers and directors for losses in ex- FDIC is currently developing, specifically ATTORNEY WORK PRODUCT cess of $200 million. The recommended when our position on this subject will be claims as then proposed involved significant published. The calls came after American Memorandum To: Board of Directors, Fed- litigation risk. Most notably, the principal Banker ran an article in the Nov. 26 edition eral Deposit Insurance Corporation loss causing events occurred more that two reporting on Rep. Gonzalez’ legislation to From: Jack D. Smith, Deputy General Coun- years prior to the date of receivership, and limit thrift management profits from the sel; Stephen N. Graham, Associate Direc- were therefore at risk of dismissal on statute conversions. We also received several inquir- tor (Operations) of limitations grounds. In light of the Fifth ies about our response to Cong. Neal’s letter Date: July 27, 1995 Circuit’s opinion in Dawson, a split of au- of November 22 to you on the same subject, Subject: Authority to Institute PLS Suit; In- thority in the federal trial courts in Texas to which we have not yet responded. stitution: United Savings Association of O’MELVENY & MYERS: On Monday, the Texas, Fin #1815; Proposed Defendants: on the level of culpability required to toll Supreme Court agreed to hear this case, in- Former directors and officers, de facto limitations and the Supreme Court’s refusal volving the FDIC’s ability to sue attorneys director and controlling person Charles to consider whether a federal rule should be who represented banks that failed. The deci- Hurwitz. adopted under which negligence by a major- sion to hear the case prompted a flurry of In addition to presenting the attached au- ity of the directors would toll the statute of press inquires about similar cases past and thority to sue memorandum for Board ac- limitations, our strategy at that time was to present. We provided some statistical data tion, this memorandum reports on the status assert that gross negligence was sufficient to and limited information about the Jones Day of the continuing investigation of the failure the toll the statute of limitations. After case, which is still active. of United Savings Association of Texas briefings with the Deputies to the Directors FIRST CITY BANCORPORATION: (‘‘USAT’’), the separate investigation of and further discussion with the potential de- Bloomberg Business News, Houston Bureau, USAT being conducted by the Office of fendants, we decided to defer an FDIC deci- called regarding possible settlement in the Thrift Supervision (OTS), current tolling sion on whether to assert our claims, in First City Bancorporation’s claims case. It agreements, and settlement negotiations order to further investigate the facts, give seems someone is talking, because the re- with United Financial Group, Inc. (UFG), time for the Texas law on adverse porter asked about a December 14 FDIC USAT’s first tier holding company. dominations to take more concrete shape Board meeting to discuss the settlement. We were advised on July 21, 1995 that and ascertain the views of OTS. Therefore, The reporter wanted to know: If the FDIC Charles Hurwitz would not extend our tolling the tolling agreements were continued. committee working on the agreement ap- agreement with him. Consequently, if suit is II. OTS’s Involvement proves the plan, does that mean the Board to be brought it must be filed by August 2, Prior to deferring a decision on the FDIC’s will ‘‘rubber stamp’’ it? We advised the 1995. We had hoped to delay a final decision cause of action, we had begun to discuss with Board does not rubber stamp anything. The on this matter until after OTS decides OTS the possibility of OTS pursuing these Houston Chronicle also made several inquiries whether to pursue claims against Hurwitz, et claims (plus a net worth maintenance agree- about a possible settlement in this case, all al. However, Hurwitz’s actions have pre- ment claim) through administrative enforce- of which we answered with the standard re- cluded that possibility. Thus the Board must ment proceedings. After several meetings sponse that we do not comment on ongoing now decide whether to authorize suit. While with senior staff of the OTS Office of En- litigation. we would only sue Hurwitz at this time, forcement, we entered into a formal agree- LOS ANGELES TIMES: Michael Parrish rather than dividing the memo and, possibly, ment with the OTS, who began an inde- asked whether FDIC lawyers have considered having to bring it back to deal with other in- pendent investigation into the activities of whether we could legally swap a potential dividuals at a later time, the attached ATS various directors and officers of USAT, claim of $548 million against Charles seeks authorization to sue all of the individ- Hurwitz, UFG, as well as USAT’s second tier

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00100 Fmt 0666 Sfmt 0634 E:\CR\FM\A20DE8.242 pfrm07 PsN: E20PT1 December 20, 2001 CONGRESSIONAL RECORD — Extensions of Remarks E2439 holding company Maxxam, Inc, a publicly volved, but nevertheless proceed in conscious Finally, the Park 410 loan, in which USAT traded company that is largely controlled by indifference to the rights, safety, or welfare lost approximately $57 million, is included in Hurwitz. The FDIC is paying OTS’s costs in of others. That case involved a bad faith the authority to sue memo for informational connection with this matter. claim against an insurer but the language of purposes. This claim is based both on re- The OTS has reviewed extensive docu- the opinion is very broad. This new standard, peated regulatory warnings and on actual mentation and has recently conducted a se- if applied, would make it very difficult, if approval, before funding of a grossly impru- ries of administrative depositions. We have not impossible, to prove our claims. dent loan that benefitted a Maxxam insider. The effect of these recent adverse decisions been informed that OTS staff is currently The claim on this transaction against bank is that there is a very high probability that preparing a broad-based draft Notice of counsel, a long time Hurwitz business asso- much or all of the FDIC’s conventional Charges against Hurwitz and others, includ- ciate, is for professional malpractice and claims will not survive a motion to dismiss ing Maxxam, for substantial restitution for breach of fiduciary duty and aiding and abet- unsafe and unsound practices and for en- on statute of limitations grounds. We would ting breaches of fiduciary duty. We believe forcement of a net worth maintenance agree- also be at increased risk of dismissal, or loss that it is a good claim on the merits, but we ment. Under the terms of our agreement at trial on the merits. see no viable basis under existing law for with OTS, FDIC will be the beneficiary of IV. The Pacific Lumber—Redwood Forest Mat- avoiding a statute of limitations defense. any recovery from the OTS enforcement ac- ter tion through settlement or litigation against Thus, we recommend against asserting this Any decision regarding Hurwitz and the the proposed respondents. All the potential claim. former directors and officers of USAT is respondents in the OTS investigation, in- likely to attract media coverage and com- Assessment of Defenses: We expect business cluding Hurwitz, have signed tolling agree- ment from environmental groups and mem- judgment rule and standard of care defenses ments with OTS which expire on December bers of Congress. Hurwitz has a reputation as and serious statute of limitations issues 31, 1995. OTS staff’s current expectation is a corporate raider, and his hostile takeover based on recent Fifth Circuit and other that they will seek formal approval for this Texas case law. Absent a change in the law, case before the tolling agreements expire on of Pacific Lumber attracted enormous pub- there is at least a 70% chance that much or December 31, 1995. licity and litigation because of his har- vesting of California redwoods. Environ- all of the claims relating to mortgage III. Significant Caselaw Developments Have mental interests have received considerable backed securities and derivatives trading Further Weakened the Viability of Suit by publicity in the last two years, suggesting will be dismissed based on the net worth the FDIC exchanging our D&O claims for the redwood maintenance agreements be honored is more Although we have continued to investigate forest. On July 21, 1995 we met with rep- likely to survive statute of limitations mo- and refine our potential claims during the resentatives of the Department of the Inte- tions, but raises a series of different merits pendency of the OTS investigation, two sig- rior, who informed us that they are negoti- issues. nificant court decisions, and the failure of ating with Hurwitz about the possibility of Congress to address the statute of limita- swapping various properties, plus possibly Suit Profile: The suit will attract media and tions problems, have further weakened the the FDIC/OTS claim, for the redwood forest. Congressional attention because of Hurwitz’s FDIC’s prospects for successfully litigating They stated that the Administration is seri- reputation in corporate takeovers, and his our claims in the United States District ously interested in pursuing such a settle- ownership of Pacific Lumber, which is har- Court for the Southern District of Texas. ment. We plan to follow us on these discus- vesting redwoods. Environmental interests A. Statute of Limitations sions with the Department of Interior in the have received considerable publicity, often suggesting exchanging these claims for trees. In the recent decision of RTC v. Acton, 49 coming weeks. The Department of Interior recently in- F.3d 1086 (5th Cir. 1995), the Fifth Circuit If the Hurwitz tolling agreement expires formed us that the Administration is seri- held that under Texas law, only self-dealing without suit being filed, we would rec- or fraudulent conduct, and not gross neg- ommend that we update those members of ously interested in pursuing such a settle- ligence, is sufficient to toll the two year Congress who have inquired about our inves- ment. tigation and make it clear that this does not statute of limitations under the doctrine of Timing and cost-benefit analysis: We intend end the matter of Hurwitz’s liability for the adverse domination. As a result of this opin- to use Hopkins & Sutter (Chicago/Dallas) and failure of USAT because of the ongoing OTS ion, we cannot rely on an argument that the minority firm Adorno & Zeder (Miami). investigation. gross negligence by a majority of the Board The estimated cost of litigation by outside Theory of suit: The claims are for gross members is sufficient to toll the statute of counsel is $4 million up to trial, and an addi- limitations. There is very little, if any, evi- negligence, breach of fiduciary duty and breach of the duty of loyalty. The claims tional $2 million through trial. We have in- dence of fraud or self-dealing. Most, if not curred outside counsel fees and expenses of all, of the affirmative acts that would form are: (1) USAT officers and directors, and $4 million to date. In-house costs to date are the basis for an FDIC suit occurred more Hurwitz as a de facto officer and director, approximately $600,000. No insurance cov- than two years before USAT failed. were grossly negligent in failing to act to erage appears to be available. The proposed B. The Merits prevent $50 million of additional losses from defendants have a combined net worth of ap- The law has also moved against us on the USAT’s first MBS portfolio. The positions proximately $150 million (Exhibit A). If the merits of the claims. The claims against were in place more than two years before case survives the statute of limitations chal- Hurwitz are more difficult than usual be- failure. Our analysis indicates that they lenge, we still face significant adverse cause he was not an officer or director of should have begun to cut their losses, and caselaw in Texas on the standard of care and USAT. We believe that his involvement rose wind down this set of positions, starting two the business judgment rule. For these rea- to the level of a de facto director, and for years before failure. sons, there is no better than a 50% prob- some purposes a control person, but his sta- (2) USAT officers and directors, and ability of obtaining a substantial judgment tus presents a notable hurdle. Hurwitz as a de facto officer and director, even if we survive statute of limitations de- Texas case law has essentially eliminated were grossly negligent in causing USAT to fenses in tact it would have an estimated liability for negligence in the name of apply- invest approximately $180 million in its sub- settlement value of $20–40 million. ing a very expansive business judgment rule sidiary, United MBS, leveraging the invest- defense. We believe the conduct here con- ment into $1.8 billion of mortgage backed se- If suit is authorized we would expect to stitutes gross negligence as that term is nor- curities (‘‘MSBS’’) and losing approximately offer Hurwitz one final opportunity to toll. mally defined. The law of gross negligence in $97 million, including interest, when USAT We would not sue the other proposed defend- Texas is currently unsettled, but a recent de- had already suffered disastrous results in its ants during 1995 if they leave their tolling cision by the Texas Supreme Court an- first MBS portfolio and was in a critically agreement with us and OTS in place. nounced a new standard of gross negligence weakened financial state. Approximately $80 Contacts: Jeffrey Ross Williams, Counsel, that will be very difficult to meet if it is ap- million of the $180 million was advanced (202) 736–0648; Robert J. DeHenzel, Jr, Coun- plied to D&O cases. In Transportation Insur- within two years of the failure. sel, (202) 736–0685, PLS; Betty Shaw, Inves- ance Company v. Moriel, 879 S.W.2d 10 (Tex. (3) Hurwitz, as a de facto officer and direc- tigations Specialist, Southwest Service Cen- 1994), the Texas Supreme Court defined gross tor and controlling person of USAT, ter, (214) 851–3042. negligence as constituting two elements: (1) breached his duties of loyalty to USAT by viewed objectively from the standpoint of failing to insist that UFG and Maxxam Concurrence: the actor, the act or omission must involve honor their net worth maintenance obliga- Date: July 27, 1995. an extreme degree of risk, considering the tions. While this breach may have first oc- WILLIAM F. KROENER III, probability and magnitude of the potential curred more than two years before failure, it General Counsel. harm to others, and (2) the actor must have was a breach that continued and escalated JOHN F. BOVENZI, actual, subjective awareness of the risk in- within two years of failure. Director, DDAS.

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00101 Fmt 0666 Sfmt 0634 E:\CR\FM\A20DE8.246 pfrm07 PsN: E20PT1 E2440 CONGRESSIONAL RECORD — Extensions of Remarks December 20, 2001 EXHIBIT A—PROPOSED DEFENDANTS

Name Positions Net Worth

Charles Hurwitz ...... Director of UFG (11/10/83–2/11/88) ...... $140MM UFG Executive Committee (1983–2/11/88) ...... President and CEO of UFG (8/84–11/14/85) ...... Chairman of the Board of UFG (8/84–11/14/85) ...... UFG/USAT Strategic Planning Committee (1986 and 1987) ...... Barry Munitz ...... Director of USAT (8/26/82–1988) ...... $3.4MM USAT Executive Committee (1982–1988; Chairman, 1985–1988) ...... USAT Executive Compensation Committee (1982–1985) ...... USAT Investment Committee 8/8/86–5/19/87; Chairman, 1986) ...... UFG/USAT Strategic Planning Committee (1986 and 1987) ...... Director of UFG (1983–1988) ...... Chairman of UFG board (1988) ...... Chief Executive Officer and President of UFG (1988) ...... UFG Executive Committee (1983–1988; Chairman, 2/14/85–1988) ...... UFG Investment Committee (1987) ...... UFG Compensation Committee (1983–1988) ...... Jenard Gross ...... Chairman of the Board of USAT (2/14/85–1988) ...... $7MM CEO of USAT (2/14/85 to 1988) ...... President of USAT (1/8/87 to 1988) ...... USAT Executive Committee (1986–1988) ...... USAT Audit Committee (11/10/87–1988) ...... Chairman of USAT Investment Committee (5/8/86–1988) ...... USAT/UFG Strategic Planning Committee (1986–1987) ...... Director of UFG (1985–1988) ...... President and CEO of UFG (11/14/85–1988) ...... UFG Executive Committee (1985–1988) ...... Michael Crow ...... Executive VP (Fin/Adm) and Chief Financial Officer of USAT (12/83–1988) ...... Unknown Senior Executive VP (Fin/Adm) of USAT (1/8/87–1988) ...... USAT Executive Committee (1988) ...... USAT Investment Committee (5/8/86–1988) ...... USAT/UFG Strategic Planning Committee (1986 and 1987) ...... Director of UFG (1988) ...... CFO of UFG (1984–1988) ...... Senior VP of UFG (12/83–1988) ...... Net Worth Total ...... $150MM Available Insurance ...... $0 Total Recovery Sources ...... $150MM

PRIVILEGED AND CONFIDENTIAL ATTORNEY Under Hurwitz’s control, USAT made a erally insured deposit institution such as WORK PRODUCT large number of, at best, questionable real USAT and the assistance it would provide to Chairman Helfer, Vice Chairman Hove, Di- estate loans, both made and lost money on his takeover activities. He acquired control rector Ludwig, Acting Director Fiechter, Mr. its junk bonds, and suffered huge losses on over USAT’s approximately $3.3 billion in as- Geer, Mr. Mason, Mr. Hood, Mr. Zemke, Mr. two successful attempts to create paper prof- sets through entities owned and controlled Jones, Mr. J. Smith, Mr. Rose, Mr. Thomas, its through trading mortgage backed securi- by him for a $7.8 million investment. Mr. Graham, Mr. Newton, Mr. Whitney, Mr. ties (‘‘MBS’’) and instruments that sup- Hurwitz’s $7.8 million investment con- O’Keefe, Mr. Taylor, Ms. Anderson, Mr. posedly hedged the MBS. stituted 0.2% of USAT’s initial assets; the Monahan. We recommend three basic claims: the first American taxpayers lost $1.6 billion—48% of Memorandum to: Board of Directors, Federal for $97 million in (net) losses in the second USAT’s initial assets and 200 times Hurwitz’s Deposit Insurance Corporation MBS trading scheme, the second for approxi- investment. Hurwitz dominated the affairs of From: Jeffrey Ross Williams, Counsel, Pro- mately $50 million in additional losses which both USAT and the holding company, lever- fessional Liability Section could have been avoided but were incurred aged the institution heavily, and, ulti- Robert J. DeHenzel, Jr., Counsel, Profes- with respect to the institution’s first MBS mately, engaged in a series of grossly impru- sional Liability Section portfolio, and the third for in excess of $150 dent transactions—all at little or no risk to million for failure to comply with net worth Subject: United Savings Association of Texas himself. maintenance obligations of USAT. While we On December 30, 1988 USAT failed. At fail- Houston, Texas—In Liquidation Request believe that some additional claims (involv- ure the Association had assets of $4.6 billion; for Authority to Initiate Litigation ing losses on the first MBS portfolio, a pat- the loss to the FDIC is estimated at $1.6 bil- I. Introduction ently imprudent $32 million dividend by lion. United Savings Association of Texas USAT, grossly excessive salaries, and com- This memorandum requests authorization (‘‘USAT’’) presents a graphic picture of what mercial lending losses) could pass the Rule 11 to initiate litigation against Hurwitz and can happen when: two hopelessly insolvent test for good faith pleadings, our conclusion three former directors and officers of USAT. thrifts are combined (resulting in USAT); based on the facts now known to us is that The proposed lawsuit seeks approximately regulators/insurers (FHLBB, FSLIC and ultimately we could expect to lose on those $300 million in losses incurred as a result of FHLB-Dallas) lack resources to close the additional claims under a gross negligence/ gross negligence, breach of fiduciary duties thrift; regulatory and general accounting Texas business judgment rule standard. Con- of loyalty and care, knowing participation in rules allow, if not encourage, financial re- sequently, such additional claims are not and aiding and abetting breach of fiduciary porting that does not reflect economic re- recommended. We have also negotiated an duty and professional negligence. There is no ality, and there is a controlling person agreement in principle with United Finan- directors and officers’ liability policy. The (Charles Hurwitz (‘‘Hurwitz’’)) who (a) under- cial Group, Inc. (‘‘UFG’’), USAT’s first tier proposed defendants have an aggregate net stands the foregoing, (b) can obtain control holding company, to settle a separate tax worth of approximately $150 million. of the thrift by investing a nominal percent- claim for approximately $9.6 million, which Absent a change from the current state of age of his assets ($7.8 million to control $3.3 the law in the Fifth Circuit on the statute of we hope to finalize within the next 90 days. billion), (c) has substantial personal and cor- limitations, there is at least a 70% chance porate incentives to keep USAT open and II. Background that most or all of the case will be resolved under his control regardless of its actual In 1982, Hurwitz, a well-known Houston in- adversely to the FDIC on summary judgment condition (e.g., to maintain his ability to vestor active in leveraged corporate acquisi- or on a motion to dismiss. If, the claims sur- buy massive quantities of Drexel junk bonds tions, acquired USAT in connection with a vive the statute of limitations challenge, the with no funding concerns or real risk to him- merger of two Houston savings and loan odds of a favorable outcome remain marginal self and aid him in obtaining an $8 million holding companies, namely, UFG which at best because of adverse caselaw on the bonus from another Hurwitz controlled enti- owned 100 percent of USAT, and First Amer- standard of care and the business judgment ty, Maxxam, Inc. (‘‘Maxxam), and (d) could, ican Financial of Texas (‘‘First American’’). rule. and did, recruit and motivate enough officers From the outset of the Hurwitz regime, The admittedly high cost, high risk claims and directors (the ‘‘core group’’) for USAT to USAT was in serious financial trouble. It against Hurwitz and the former directors and assure that his goals were promoted despite struggled with a portfolio of under-per- officers outlined in this memorandum may their cost to USAT—and, ultimately, the forming and non-performing loans; it had the result in a significant recovery. After bal- American taxpayers. burden of $280 million in goodwill as a non- ancing the merits of the claims, the likely In addition to self-inflicted wounds, USAT income producing intangible asset; and it recovery sources, and the fact that the stat- was the victim of a multimillion dollar fraud had severe internal control problems. USAT ute of limitations defense may be be tested (by Couch Mortgage), and suffered the effects survived only by taking gains from extraor- early in the litigation, thus reducing the of holding a portfolio of real estate loans and dinary and high risk transactions. likely cost if the litigation is ultimately un- investments in the collapsing Texas econ- Hurwitz’s acquisition of USAT obtained for successful on that basis, we recommend that omy. him the financial leverage available in a fed- these claims be pursued.

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00102 Fmt 0666 Sfmt 0634 E:\CR\FM\A20DE8.250 pfrm07 PsN: E20PT1 December 20, 2001 CONGRESSIONAL RECORD — Extensions of Remarks E2441 III. Theory of the Claims it had done so, the ultimate losses USAT suf- Hurwitz devised and approved USAT business The proposed litigation consists of three fered as a result of Joe’s Portfolio would strategies. He worked with other MCO/FDC claims which are summarized briefly below have been reduced by approximately $50 mil- employees to direct USAT’s securities in- and set out in more detail in Section V, lion. vestments. infra. The same members of the Investment Com- Further, Hurwitz hand-picked certain prior business and social friends for key positions A. Claims Against Hurwitz and the Core Group mittee involved with the UMBS claim, as well as Hurwitz, would be defendants on the at USAT to carry out his plans for USAT, The claims against Hurwitz and the pro- Joe’s Portfolio claim and the legal theories and hired others, paying them excessive sala- posed officer and director defendants will be would mirror those on the UMBS claim. ries despite their limited experience in the based upon losses resulting from USAT’s de- 3. Net Worth Maintenance Obligation savings and loan industry. The relationships cision to engage in two significant trans- these individuals had with Hurwitz and the actions, each grossly imprudent: the invest- By virtue of his position as a de facto offi- salaries USAT paid them compromised their ment of $180 million in a USAT subsidiary, cer and director and controlling person of loyalty to the institution. This group of United MBS (‘‘UMBS’’), to facilitate what USAT, Hurwitz owed to USAT a duty of loy- Hurwitz associates—the ‘‘core group’’—in- were billed as risk controlled arbitrage ac- alty and a duty to protect and care for the cluded Crow, Munitz, Kozmetsky, Gross, tivities (with losses of approximately $97 interests of the institution. By virtue of his Berner, and Huebsch. Each of them held posi- million) and its failure to act to prevent fur- position as a Board member and officer at tions not only with USAT but also the hold- ther losses in USAT’s first MBS portfolio UFG and MCO (two of USAT’s holding com- ing company, UFG, and with MCO/FDC. panies), and as a director and control person (with losses of approximately $50 million). B. The Drexel Connection The third claim is against Hurwitz only for of Federated Development Company A principal motive for Hurwitz’s acquisi- failure to maintain the net worth mainte- (‘‘FDC’’), Hurwitz was in a position to cause these entities to honor their net worth main- tion of USAT was the potential assistance it nance obligations of USAT. could provide for his takeover activities. The 1. The $180 Million Investment in United MBS tenance obligations to USAT. Hurwitz inten- tionally disregarded these duties and, indeed, initial plan called for using USAT as a mer- The claims against the proposed defend- chant bank which would directly participate devoted considerable efforts to helping UFG, ants for UMBS losses are predicated upon in hostile takeovers. The first such effort MCO and FDC avoid these responsibilities. strong warnings from regulators and USAT’s was the attempted takeover by MCO, FDC The loss attributable to his breaches of duty outside auditor concerning USAT’s securi- and USAT, of Castle & Cook (‘‘C&C’’) in late is in excess of $150 million. ties investments, the defendants’ knowledge 1983. The use of federally insured funds in of USAT’s deep financial trouble and USAT’s * * * * * connection with this activity resulted in liti- disastrous mismanagement of and dem- While we believe the entire USAT Board gation, unfavorable publicity and criticism onstrated inability to control its MBS in- was grossly negligent with respect to the from FHLBB regulators. Ultimately, vestment portfolio. The theory of the claims UMBS investigation and Joe’s Portfolio, we Hurwitz abandoned the C&C takeover and against most of the proposed defendants is do not and cannot recommend suit against thereafter utilized USAT to support his twofold. First, the USAT Board was grossly all Board members. Early in the course of takeover activities through less direct negligent in abdicating its supervisory role the investigation of the case, tolling agree- means. over the investment affairs of the institution ments were entered into with officers and di- In 1984, Hurwitz entered into what ap- by failing to carefully analyze, approve, and rectors who were perceived at the time to be peared to be a quid-pro-quo arrangement assure adequate controls on the investment key players. Other officers and directors who with Drexel Burnham Lambert, Inc. in UMBS. Second, certain directors and sen- were perceived to be of less significance were (‘‘Drexel’’) pursuant to which Drexel would ior officer members of the Executive Com- not presented with tolling agreements. With assist Hurwitz’s takeover activities in ex- mittee, Investment Committee and Strategic respect to those individuals with whom we change for USAT’s investment in Drexel un- Planning Committee (including Hurwitz) have tolling agreements, the selection of derwritten junk bonds. This conclusion is were grossly negligent by virtue of their hav- parties as defendants in the UMBS and Joe’s supported by the timing and nature of the ing orchestrated the formation of UMBS, ac- Portfolio claims has been governed, prin- trades and financings at USAT and is con- tively directed the investments in UMBS and cipally, by four factors. The first is the de- sistent with Drexel’s work with other lend- caused substantial USAT funds to be lost due gree to which the proposed defendant was in- ing institutions. In 1992, USAT Director and to UMBS’s high risk trading strategies. volved in the transactions at issue. The sec- Executive Committee member Barry Munitz Hurwitz, as a de facto director and an active ond is the knowledge of the affairs of the in- stated in an interview that an ongoing rela- participant on the Strategic Planning Com- stitution attributable to the proposed de- tionship with Drexel was important to mittee, is liable under both theories. The fendant. The third is the extent to which the Hurwitz. According to Munitz, Hurwitz need- claims against Hurwitz, in addition to those proposed defendant was a member of the ed to keep USAT open and free from regu- set forth above, are based on his knowing Hurwitz ‘‘core group’’. The fourth factor is latory intervention in order to maintain his participation in and aiding and abetting the the degree to which pursusing a defendant ‘‘ticket-to-ride’’ with Drexel, and refused to have other entities he owned or controlled officers and directors in the breach of their against whom legitimate claims now exist acquire a junk bond portfolio because of the duties. and is cost effective. The application of those four factors to individual defendants is risk. We believe that many of the accounting 2. Failure To Prevent Further Losses From driven gains taken by USAT to artificially USAT’s First MBS Portfolio—Joe’s Portfolio set forth in Section V infra. Finally, we did not propose suit against certain directors maintain net worth were undertaken to The claim against the proposed defendants who were not part of the ‘‘core group,’’ did avoid regulatory intervention and to ensure arising from USAT’s first portfolio—Joe’s not personally benefit, and were otherwise in that USAT would continue to provide Portfolio—is based on the failure to take ac- the same position as others as to whom we Hurwitz with access to Drexel—even at the tion in early 1987 to prevent exposing USAT had previously allowed the statute of limita- cost of operating the institution at a loss. to further losses. Joe’s Portfolio itself has tions to expire. We believe this result is fair USAT eventually became the eighth largest been described by one USAT analyst as a dis- and that it is unlikely to change the eco- purchaser of Drexel-underwritten junk bonds aster. USAT set up the portfolio without nomics of the claim. among all savings and loans nationwide. By hedging against the risks of declining inter- December 1986, 69% of USAT’s entire junk est rates and, when interest rates declined, IV. History and Regulatory Background bond portfolio, valued at $444 million, was USAT was left with interest rate swap agree- Drexel underwritten. ments requiring fixed interest payments well A. Hurwitz’s Control Over USAT During this period, Drexel arranged junk in excess of the short term interest rate pay- Charles Hurwitz exercised control over bond funding for Hurwitz’s takeover activi- ments USAT received in return. Rather than most of the activities of the Association. He ties and USAT purchased junk bonds and recognizing the loss inherent in the swap was the key decision make at the institution other investments from Drexel. From 1984 agreements, USAT engaged in a ‘‘roll down’’ although he had not formal title at USAT. In through 1988, Hurwitz obtained approxi- strategy, replacing higher coupon MBSs with addition to the control conferred by his mately $1.8 billion in junk bond financing more stable current coupon issues. The re- stock ownership in UFG, Hurwitz acted as a through Drexel for his takeover activities, sult was that USAT ended up with MBSs de facto officer and director of USAT—he and USAT purchased approximately $1.8 bil- yielding substantially less than the rates was Chairman of UFG, which had virtually lion of Drexel junk bonds, and other Drexel USAT was required to pay on its swap agree- no operations independent of USAT, and brokered securities. ments. caused USAT to hold joint USAT/UFG Board Drexel also assisted Hurwitz’s efforts to in- By December 31, 1986, it was obvious that meetings, which he attended; he attended sulate his key entities FDC and MCO from USAT’s strategy for Joe’s Portfolio made no certain Senior Loan Committee (‘‘SLC’’) USAT net worth maintenance obligations. In sense. The portfolio had a negative spread meetings (including the Park 410 meetings) June 1983, FDC and MCO filed an application and the low coupon MBSs exposed USAT to and selected Investment and Executive Com- with the FHLBB to acquire a controlling in- substantial risk of loss in the event that in- mittee meetings; and he was a member of the terest of as much as 35 percent of UFG and terest rates increased. Peterson Consulting UFG/USAT Strategic Planning Committee. thus to become a savings and loan holding has analyzed the portfolio and concludes Together with other officers and directors of company (‘‘SLHC’’) for USAT. In December that USAT should have terminated the FDC and MCO (the Hurwitz entities which 1984, the FHLBB approved the FDC/MCO ap- swaps and sold the MBSs in January 1987. If held a substantial stock interest in UFG), plication subject to the condition that FDC/

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00103 Fmt 0666 Sfmt 0634 E:\CR\FM\A20DE8.253 pfrm07 PsN: E20PT1 E2442 CONGRESSIONAL RECORD — Extensions of Remarks December 20, 2001 MCO maintain the net worth of USAT. That USAT declared and paid a dividend of $32.6 much extraordinary profit as possible, while condition was unacceptable to hurwitz, who million to UFG. The Federal Home Loan deferring losses, in order to keep the institu- engaged in extensive negotiations with the Bank Board’s Supervisory Agent in Dallas tion alive. Hurwitz’s motive in directing this FHLBB to attempt to eliminate or modify expressed ‘‘no supervisory objection’’ to the strategy was that so long as the institution that condition. These negotiations continued dividend because it fell within the limits of survived, it could purchase junk bonds and from December 1984 through at least 1987, the Bank Board’s December 6, 1984 resolu- Drexel could continue to facilitate his other but never resulted in an agreement. During tion, which provided that UFG would not financial objectives. their pendency, Hurwitz, nonetheless, ap- cause USAT to pay a dividend that exceeded a. USAT Mortgage Finance pears to have increased FDC/MCO’s control 50% of USAT’s net income. The $32.6 million Although USAT may have been in compli- over USAT. At December 31, 1984, Drexel ap- was 50% of profits after USAT’s $17 million ance with its liability growth limit at the pears for the first time as a substantial operation loss was offset against this ex- end of 1985, it achieved this result by moving shareholder of UFG, holding 585,371 shares traordinary gain.) However, the Supervisory its growth to subsidiaries for which USAT (or 7.2 percent). Agent stated that ‘‘this office is very con- reported only its investment, not the indi- In December 1985, Drexel and MCO entered cerned with the Association’s practice of vidual assets and liabilities of the subsidi- into an option with respect to 300,000 of the selling branch offices to fund upstream divi- aries. One of these subsidiaries, USAT Mort- UFG shares held by Drexel. Drexel had a dends, particularly in view of the Associa- gage Finance, Inc., was formed in late 1985 to right to put the shares to MCO in 1988 at a tion’s $17.4 million net operating loss for fis- acquire $500 million of MBSs funded by re- premium over market. Drexel also received a cal year 1984’’. The Supervisory agent also verse repurchase agreements. Potential de- substantial option fee for entering into the stated that ‘‘. . . we will continue to closely fendants state that USAT formed USAT transaction. Documents produced by MCO’s monitor the Association’s performance and Mortgage Finance to be a ‘‘finance sub- successor, Maxxam, indicate that the trans- will take action if the Association’s earnings sidiary’’ with the understanding that its as- action was structured to avoid the 25% own- and net worth position begin to deteriorate.’’ sets and liabilities would not have to be re- ership threshold which would have obligated 2. Liability Growth in 1985 ported on USAT’s books. They further assert MCO/FDC to maintain USAT’s net worth. USAT used the remaining 50% of its that USAT quickly learned that the regu- The agreement was extended in 1988 for no branch sale profit (and the resulting increase latory treatment it anticipated would not be consideration, to avoid Drexel putting UFG in net worth) to support additional growth available and therefore sold $350 million of shares to MCO when USAT already had ad- during 1985. As USAT described the situation the subsidiary’s MBSs, paying off a like mitted that it failed to meet minimum net in mid-1985, the increased net worth from the amount of reverse repurchase agreement li- worth requirements. Drexel did not exercise branch sale provided ‘‘a foundation upon abilities. its right to put the shares to MCO until 1989, which to build a new United.’’ The assets ac- The sale of USAT Mortgage Finance’s after USAT failed. quired by the ‘‘new United’’ principally con- MBSs resulted in a realized $9.3 million gain C. The Economic Context For The Claims sisted of mortgage-backed securities in 1985, without which USAT would have in- Against Hurwitz and the Core Group (‘‘MBSs’’) and ‘‘corporate securities’’—most curred a loss for the year. However, in real The conduct of the defendants which will of which were junk bonds. By June 30, 1985, economic terms, USAT’s sale of the MBSs re- be the subject of the proposed litigation USAT had acquired $489 million of MBSs sulted in a loss because USAT had acquired must be evaluated in the context of USAT’s funded by reverse repurchase agreements and interest rate swaps to extend the duration of overall financial condition. From the outset $288 million of ‘‘corporate securities’’ funded the reverse repurchase agreement liabilities. of Hurwitz’s involvement with USAT, the in- with brokered deposits. The $9.3 million gain on the MBS sales was stitution faced enormous financial chal- USAT’s growth during the first half of 1985 matched by a larger unrealized locked in loss lenges. Although its financial statements re- resulted in an increase in total liabilities in ($14.7 million) in the value of the swap agree- ported capital in compliance with regulatory excess of the annualized 25% rate for which ments. USAT did not recognize the loss in- requirements, the institution had a non- prior approval by USAT’s Principal Super- herent in the swap agreements, but instead earning asset—goodwill—on its books arising visory Agent was required under 12 CFR redesignated the swaps in order to justify de- from the First American merger. This large § 569.13–1(a)(1). USAT failed to obtain prior ferring the loss, and permit regulation of it (more than $280 million) intangible asset ex- approval. USAT’s liability growth led to a over the life of the agreements as payments ceeded USAT’s total reported capital, leav- request by the Supervisory Agent on October were made under the swaps. According to the ing USAT with no tangible capital on a liq- 22, 1985 that USAT’s Board execute a Super- workpapers of USAT’s outside auditors, Peat uidation basis. Moreover, the need to amor- visory Agreement under which the associa- Marwick & Mitchell (‘‘Peat Marwick’’), ‘‘the tize USAT’s goodwill over time created a tion would be obligated to comply with the forced sale of securities left an’’ ‘‘imbal- drag on earnings for the foreseeable future. liability growth regulation and provide a ance’’ between the securities portfolio and In addition to the challenge presented by monthly report concerning liability growth. the swap agreements. USAT explained to USAT’s goodwill, by the mid-1980’s the insti- After extended negotiations, USAT agreed to Peat Marwick that it had then entered into tution also faced the impact of the decline in limit its liabilities on December 31, 1985 to a ‘‘mirror swap’’ with respect to $230 million the Texas real estate market, which threat- $4.68 billion. USAT’s Board adopted a resolu- of the swaps in order to offset some of the ened earnings from USAT’s real estate re- tion expressing the agreement and a Feb- imbalanced position. The mirror swap locked lated assets and subjected the Association to ruary 18, 1986 memorandum from a FHLBB of in the negative spread that USAT would repeated increases in loan loss reserves. Dallas Subvisory Agent to the Bank Board’s have to pay over the life of the agreements, USAT management was well aware of the Director of Enforcement stated that ‘‘United provided they were not terminated (and the challenges it faced. A memorandum from was in compliance at December 31, 1985.’’ loss taken) at an earlier date. USAT’s transactions in USAT Mortgage USAT’s president, Gerald Williams, to 3. The Mortgage Backed Security Losses Hurwitz, dated April 12, 1985, stated that the Finance and its accounting enabled USAT to In 1985–1986 USAT engaged in a series of se- report a gain from the transaction without ‘‘biggest road block to operational profit im- curities transactions which seriously im- provement’’ was the approximately $241 mil- recognizing the corresponding loss on the in- paired the institution. These transactions il- terest rate swap agreements. This highly ag- lion of non-earning intangible asset of good- lustrated that the institution did not have will. A memorandum from USAT’s Chief Fi- gressive (and disputed) accounting treat- the desire, intent, or expertise to manage ment was approved by Peat Marwick. FDIC nancial Officer, Michael Crow, dated August such a securities portfolio properly. 21, 1985, stated that ‘‘we need to put together retained Peterson Consulting to evaluate the Even under the best of circumstances (i.e., transaction and calculate the loss inherent a slide show . . . for Mr. Hurwitz as to why the prospect of earning a net spread of ap- in the swap agreements. Peterson Consulting we cannot make money at United Sav- proximately 100 basis points on the MBS concluded that the ‘‘implied market value ings.... [explaining] why our profitability portfolio), the MBS investment strategy loss’’ on the $230 million mirrored swap is impaired by such things as goodwill amor- could not possibly have had a substantial im- agreements was $9.6 million and that, if the tization, below market mortgage loans etc.’’ pact on USAT’s existing and deepening prob- remaining $120 million of swap agreements 1. The Branch Sale and $32.6 Million Dividend lems due to its enormous goodwill carry and had been terminated, and transaction costs With that as prologue, in 1984, USAT sold its escalating losses on its non-performing taken into account, a loss of $5.1 million approximately half of its branch network real estate portfolio. In practical terms, a 100 would have resulted. If these losses had been with the stated intention of moving toward a basis point spread on a $500 million portfolio recognized in 1985, they would have caused ‘‘wholesale strategy’’ which would rely less would yield an annual profit of $5 million. USAT to report a $1,436,000 loss for the year on traditional core deposits and home mort- Before economic reality caught up with re- and to report net worth of $172,129,000, ap- gage lending and more on brokered deposits ported results, USAT has reported extraor- proximately $347,000 below the association’s and other ‘‘wholesale’’ activities. The branch dinary profits in this portfolio of approxi- required net worth at the end of the year. sale resulted in a reported profit of $81 mil- mately $70 million through the end of 1986— Thus, USAT entered 1986 with the knowl- lion. Rather than either offsetting this gain while the ultimate result from this portfolio edge that it had narrowly avoided reporting against goodwill (which was presumably was an approximately $190 million loss (ap- a loss for 1985; that in economic terms, it had based in large part on the franchise value of proximately $110 million in swap losses and incurred a loss on its swaps that, if recog- the branch network) or leaving the addi- $80 million in MBS losses) to USAT. USAT’s nized, would have reduced its net worth to tional capital in USAT to absorb future goal was simple—make every effort to de- slightly less than its regulatory require- goodwill amortization or operational losses, flect regulatory concern by generating as ment; and that its goodwill and other real

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00104 Fmt 0666 Sfmt 0634 E:\CR\FM\A20DE8.256 pfrm07 PsN: E20PT1 December 20, 2001 CONGRESSIONAL RECORD — Extensions of Remarks E2443 estate problems persisted and meant that, problems at USAT. They took no steps, how- sults in substantial losses and cannot be de- absent extraordinary transactions, in the ever, to assert control over the institution. fended as business judgments. words of USAT’s Chief Financial Officer, ‘‘we Thus: V. Discussion of Claims cannot make money at United Savings.’’ The Board as a whole was advised early in A. MBS Transactions b. The ‘‘Roll Down’’ of Joe’s Portfolio USAT’s history of significant problems in 1. Formation and Operation of UMBS the Assosciation’s real estate portfolio. In In 1985, USAT itself made substantial in- In late 1986 USAT decided to form a sub- January 1985, the entire Board was advised vestments in MBSs in what became known sidiary—UMBS—to engage in what was by Texas regulators that (a) scheduled items as ‘‘Joe’s Portfolio,’’ referring to Joe Phil- billed as leveraged MBS ‘‘risk’’ controlled had grown dangerously and exceeded the As- lips, USAT’s junk bond analyst who during arbitrage.’’ Either the attempts to hedge the sociation’s net worth ($153.7MM in scheduled this period also had responsibility for man- portfolio were grossly deficient or there were items constituting 105% of net worth and aging the MBS investments. After presen- a series of largely unhedged rolls of the dice 4.4% of assets), (b) the appraisal practices at tations by various investment banking firms or UMBS was used to put on a massive—al- USAT were suspect, and (c) ‘‘significant’’ in- engaged in the business of selling such trans- most $2 billion—straddle. That is, UMBS was creases in loss reserves would be forth- actions to savings and loans, USAT acquired set up so that no matter how interest rates coming. MBSs, funded them with reverse repurchase moved there would be large gains and large In February 1985, the Board acknowledged agreements, and entered into interest rate losses in its portfolio. UMBS took its prof- receipt of the Texas Savings and Loan De- swap agreements to effectively lengthen the its—to allow USAT to report profits—and let partment’s warnings concerning the growth maturity and duration of the reverse repur- its losses run. The reported profits were ap- of scheduled items at the Association and chase liabilities. USAT’s description of the proximately $60 million through December promised to monitor such matters more program in an October 28, 1985 letter to 1988, while actual accounting losses at liq- closely. Yet, in the same month, the Board, USAT’s Principal Supervisory Agent at the uidation were approximately $125 million. for the first time, delegated loan approval up FHLB of Dallas noted that the asset/liability USAT invested approximately $180 million to $70 million to the SLC in an act of re- match ‘‘virtually locks in a spread between in the UMBS, leveraged the investment into markable abdication of control over USAT’s United’s asset yield and funding cost.’’ a $1.8 billion portfolio of MBSs and ended up USAT’s program was seriously flawed from real estate lending. From 1984 through 1986, the Board and the losing about $97 million, taking into account the beginning. The interest rate swaps Audit Committee of the Board were repeat- the cost of the funds invested. Although we locked in a funding cost of approximately edly advised by the Association’s outside do not recommend naming all the Board 11%, which generated a positive spread when auditors that the ADC lending was a signifi- members as defendants, we believe the entire compared with the original MBSs in the cant problem at the Association and that the Board abdicated its responsibility to ade- portfolio having a yield of slightly over 12%. Association’s appraisal practices were defi- quately supervise USAT when it failed to But the home mortgages underlying the cient. Indeed, on the very day the Park 410 consider, approve, or control the risk inher- MBSs were subject to prepayment at the op- loan was approved by the Board, the Audit ent in the $100 million investment in UMBS. tion of the mortgagors. Shortly after USAT Committee met with outside auditors and The decision by certain directors and officers acquired the MBSs for Joe’s portfolio, inter- were advised again of problems with the As- to invest in UMBS and engage in these ac- est rates plunged, with the five year Treas- sociation’s appraisal practices. tivities was grossly negligent. The risk of ury rate falling from 10.88% in April, 1985 to Throughout 1985 and 1986 Board packets the UMBS investment was especially obvious 7.14% in April 1986, giving homeowners an in- forwarded to members of the Board for quar- and totally imprudent in light of USAT’s dis- centive to refinance their mortgages. As a terly meetings clearly indicated the growing astrous experience with its first ‘‘risk-con- result, USAT found that the MBSs were pre- danger that ADC lending posed to the insti- trolled’’ MBS portfolio, particularly in light paying at a much faster rate than had origi- tution and the rapidly rising rate of fore- of USAT’s weakened financial condition. The nally been estimated, depriving USAT of the closures in the portfolio. decision was a breach of the defendants’ fidu- high yielding assets which were needed to Throughout 1986 the Board was advised by ciary duties of loyalty because its purpose cover the 11% funding cost on the interest either Peat Marwick or by the Investment was to extend the life of USAT for the ben- rate swaps. Committee (Board members received copies efit of Hurwitz’s interests regardless of cost USAT reacted to the accelerating prepay- of Investment Committee minutes) that the or risk. Moreover, once the investment was ments by attempting to sell the high yield- significant increase in securities trading had made, USAT’s Investment Committee au- ing MBSs at a gain before they prepaid and yielded serious internal control problems, thorized UMBS to engage in speculative purchasing replacement MBSs at current and that the MBS portfolio was seriously strategies, gambling that large profits could coupon rates. The theory of this ‘‘roll down’’ distressed. be achieved, without hedging to protect strategy apparently was to acquire more sta- Board members were advised in February USAT’s investment in the event that the ble MBSs that would be less likely to prepay, 1986 that the income of the UFG Group was strategies failed. The authorization of these eroding the assets in the portfolio. However, plummeting and that the accounting gains strategies was grossly neglient and a breach USAT continued this roll down strategy long taken by USAT from MBS trading may not of the defendants’ fiduciary duty of loyalty. after it ceased to make sense. As interest reflect ‘‘real’’ results. USAT’s Board members were advised by rates declined USAT continued to sell MBSs The April 1986 Texas Examination and the Peat Marwick in early 1986 of internal con- at a gain and to reinvest in current coupon May 1986 FHLB Examination reported that trol problems and a steep rise in securities MBSs, even though the new MBSs yielded the institution had significant securities in- activities. They were also advised through less than the locked in funding cost on the vestment problems, a staggering substandard Investment Committee minutes that USAT’s interest rate swaps. When interviewed about assets problem, and was as much as $20 mil- MBS trading was in a confused and troubled the events of early 1986, Joe Phillips did not lion below its regulatory capital require- state. Remarkably, despite this, and in what recall that USAT had continued the roll ments. These findings were not formally appears to be another total abdication of re- down strategy after it had become futile, but communicated to USAT’s Board until 1987, sponsibility, the Board never considered or conceded that rolling down to MBSs which but regulators had periodic discussions with voted upon resolutions authorizing the in- yielded a negative spread (after taking into senior management on these items during vestment of any specific amount in UMBS, account the gains realized) made no sense. the summer of 1986. much less the $100 million initially invested USAT’s decision to roll down to lower cou- The claims against Hurwitz and the core in UMBS. The failure of Board members pon MBSs, rather than to ‘‘unwind’’ Joe’s group must be viewed against this back- Munitz and Gross (who were members of Portfolio may have been a conscious decision ground. By 1986 it was readily apparent to Hurwitz’s core group) to act to protect USAT to expose USAT to a risk of even larger the officials of USAT that the institution’s from these investment strategies, to take losses in the future in order to avoid imme- viability was in doubt. Yet within a four steps to control USAT’s MBS activities and diate recognition of the losses inherent in month period in 1986 (May to August) USAT to prevent the initiation of a new, even larg- the interest rate swap agreements USAT had approved major transactions with extraor- er phase of such activities, warrants pro- entered into in connection with Joe’s Port- dinary and unacceptable risk. These activi- ceeding against them. Although Kozmetsky folio. Had USAT admitted its error in struc- ties evidence blatant disregard for the offi- was a Board member and a member of turing Joe’s Portfolio and decided to unwind cers’ and directors’ duties to the institution Hurwitz’s core group, we do not recommend it, using the proceeds from MBSs to repay and illustrate the degree to which certain naming him as a defendant. reverse repurchase agreement lenders, it members of the Board deferred to the inter- The formation of UMBS was approved by would have been left with the adverse inter- ests and goals of Charles Hurwitz. Both of USAT’s Executive Committee at a meeting est rate swap agreements alone. There were the transactions underlying our proposed on August 7, 1986 but there was no recorded large imbedded losses in these swaps that claima display a common thread—namely, discussion at the meeting of the size of the would have to have been recognized if they the willingness of USAT’s officials to com- investments to be undertaken by USAT in had been terminated. mit substantial resources regardless of obvi- UMBS. Certain Hurwitz core group members, 4. Notice of Significant Problems To The Board ous long term risk of loss so long as there however, were aware of the magnitude of the Members and Senior Officers was a potential for reporting short term UMBS investment by early September. Ma- From 1984 through 1986 the officers and di- gains. The decisions to make the Park 410 terials prepared and distributed for a Sep- rectors of USAT were clearly advised by reg- loan, to invest in UMBS and the failure to tember 15, 1986 Strategy Meeting (attended ulators and outside auditors of significant act with respect to Joe’s Portfolio each re- by Hurwitz, Gross, Munitz, Crow and others)

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00105 Fmt 0666 Sfmt 0634 E:\CR\FM\A20DE8.259 pfrm07 PsN: E20PT1 E2444 CONGRESSIONAL RECORD — Extensions of Remarks December 20, 2001 include a recommendation to increase assets was to take the risks necessary to generate with the same swaps that you originally had through service corporations which will pur- substantial profits which would maintain on, it appears to me that you have worsened chase MBSs and hedge against interest rate USAT’s capital. That goal was pursued even your position.’’ risk. The materials mention a $100 million though it exposed USAT to capital losses By July 1986, it should have been clear to advance to a service corporation (presum- when interest rates increased, and jeopard- all of USAT’s senior management that some- ably UMBS) and a related asset increase of $1 ized the positive spread the portfolio was thing was seriously wrong with Joe’s Port- billion. A memorandum dated October 6, 1986 supposed to generate. folio. USAT had engaged Smith Breeden as to Crow, Phillips, Sandy Laurenson (who was Records concerning the operations of outside consultants to analyze the interest hired to manage the UMBS portfolio) and UMBS bear out Laurenson’s statements. rate sensitivity of USAT. The preliminary others (with copies to Gross and others) Contrary to the Statement of Purpose, conclusion was that USAT had positioned states that a new subsidiary had been estab- UMBS did not purchase enough GNMA puts itself so that, whether interest rates in- lished and capitalized at $100 million to be options to protect the value of its MBSs in creased or decreased, USAT was certain to utilized for Sandy Laurenson’s new MBS ar- the event that interest rates increased, as lose money. Peterson Consulting has re- bitrage activities. Thus, Hurwitz, Gross, they did from April through September 1987. viewed USAT’s report of Smith Breeden’s Munitz and Crow, as well as lower level offi- The GNMA puts options UMBS acquired analysis and concludes that it demonstrates cials at USAT, knew by October 6, 1986 that were apparently exercised for a gain of $3.6 the failure of USAT’s investment, trading a $100 million investment was contemplated million—much less than the loss on the and hedging strategies. USAT had produced and Hurwitz, Gross, Munitz and Crow must MBSs. The GNMA put options were replaced a portfolio that would generate a negative have by then reached the decision to make with additional asset hedges—Treasury note interest spread and that would lose money the investment. futures options—but they were either ac- whether rates went up or down. According to This decision was made at a time when quired too late or in an insufficient amount Peterson Consulting, a successful program USAT was in extreme financial difficulty. to offset the loss on the MBS assets. The re- would have produced a positive spread while The materials distributed at the September sult of UMBS’s inadequate asset hedges was at the same time protecting USAT from loss 15, 1986 Strategy Meeting contain projections a loss in market value of the assets of UMBS in the event of significant changes in inter- that, with no changes in interest rates, of approximately $140 million. Because the est rates. USAT would lose between $40 million and $60 liquidation took place within the approxi- By virtue of reports from USAT’s outside million in each of the next three years and mate time frame outlined by USAT for the auditors Peat Marwick and performance re- ports from senior management, by the fall of that USAT had a negative liquidation value investment—2 years—and hedges adequate to 1986, the full USAT Board also should have of $431.2 million. The materials further con- protect the value of the MBSs were not in known that something was wrong with cluded that growth and capital were both place, USAT incurred losses on its invest- USAT’s MBS portfolio which merited close needed ‘‘to restore the viability’’ of USAT ment in UMBS of at least $64.9 million (plus attention. In January 1986, the Board of Di- and that, before 1987 (when capital rules were interest). rectors was advised by Peat Marwick that to change), growth ‘‘must occur through sub- The UMBS operation involved enormous there had been a significant increase in secu- sidiaries.’’ Shortly before he left USAT, in a risks, which Laurenson understood and rities trading in 1985. Peat Marwick warned memorandum dated November 24, 1986, Ger- which she says she disclosed to members of that the increased activity and addition of a ald Williams wrote to Hurwitz, Gross and the Investment Committee and Hurwitz in trading room had caused deficiencies in in- Crow stating that USAT’s ‘‘base operation’’ their weekly meetings. The decision to un- ternal accounting controls, including (i) was losing money at a rate of $77 million a dertake those risks was reckless and grossly policies and procedures with respect to such year, up from $40 million in 1985. negligent. The result was that, when USAT’s activity had not been established; (ii) inter- We propose to also file suit against Munitz, investment in UMBS was finally terminated nal trading tickets were not completed prop- Gross, Hurwitz and Crow on the theory that by subsequent management, $172,171,894 of erly; and (iii) timely listing of the Associa- the decision to invest in UMBS was grossly USAT cash was invested in UMBS’s oper- tion’s securities positions were not properly negligent given USAT’s enormous losses ations and USAT recovered only approxi- maintained. In October 1986, the Audit Com- from based operations (making new high risk mately $107,330,000 of cash, resulting in an mittee was advised by the auditors that the investments inappropriate), given the ad- ‘‘out of pocket’’ loss of $64,997,000. If the cost investment in mortgage backed securities at verse financial consequences USAT experi- of financing USAT’s investment in UMBS at the Association had grown exponentially and enced from its investment in Joe’s Portfolio the average rate paid on USAT’s deposits is that ‘‘significantly’’ all MBS securities had and which were at high risk of being re- added to this ‘‘out of pocket’’ loss, USAT in- peated by UMBS, and given the fact that been sold and replaced with lower yielding curred a loss of $97,645,000. USAT was no longer viable at the time of the securities ‘‘with slower pre-payment experi- investment. Hurwitz, Munitz, Gross and 2. Failure to Prevent Further Losses From Joe’s ence to better match the maturities of the Crow were present at the September 15 strat- Portfolio Association’s liabilities.’’ Indeed, through a egy meeting when the magnitude of the in- The decision to invest in Joe’s Portfolio May 2, 1986 performance report to the Board, vestment—$100 million—was revealed and without hedging against the risks of declin- the Board was apprised of the fact that the presumably approved. De facto director ing interest rates left USAT with interest yield on higher coupon mortgage backed se- Hurwitz encouraged the UMBS activities and rate swap agreements requiring fixed inter- curities had deteriorated relative to that of knowingly participated in and aided and est payments well in excess of the short term lower coupon mortgage backs because of in- abetted the other defendants’ violations of interest rate payments USAT received in re- creasing speed of prepayment on the higher their duties. turn. Rather than recognizing the loss inher- coupon securities. Management informed the After UMBS was formed, USAT’s Invest- ent in the swap agreements, USAT engaged Board that, in order to protect unrealized ment Committee supervised the investment, in its ‘‘roll down’’ strategy with the result gains on the mortgage backed securities, the authorizing the various high risk strategies that USAT acquired MBSs yielding substan- Investment Group had sold the higher cou- that exposed USAT’s investment to loss. tially less than the rate USAT was required pon securities and replaced them with lower Munitz, Gross and Crow were senior execu- to pay on its swap agreements. Peterson coupon securities, thus reducing net interest tives of USAT and members of the Invest- Consulting has analyzed USAT’s portfolio spreads. By a performance report dated Au- ment Committee that approved these strate- and the roll down strategy and has concluded gust 5, 1986, the Board was informed that net gies. The Investment Committee also failed that, by the end of 1986, USAT had a negative interest income of $3.6 million fell short of to follow USAT’s stated goals for the UMBS spread on Joe’s Portfolio, even taking into the planned $7.2 million primarily because of investment. USAT’s stated goal for the account the gains realized from the sales of the reduced spread on mortgage backed secu- UMBS portfolio, as indicated by an attach- high coupon MBSs. rities. In November and December 1986, per- ment to the November 12, 1986 Investment Although USAT’s internal systems did not formance reports to the Board reported post- Committee minutes, was to ‘‘[b]uy high cou- produce comprehensive reports reflecting the ed losses for October and November of $7.2 pon FHLMC’s (10’s—12’s) and hedge assets status of Joe’s Portfolio and the risks it pre- million and $16.5 million, respectively, and and financing for 1 to 2 years.’’ A formal sented, numerous internal USAT memoranda increase in year to date interest rate swap Statement of Purpose for UMBS indicates reflect the knowledge of senior executives by expenses of $28.7 million and $32.5 million, re- that the arbitrage investment had a ‘‘a two mid-1896 that Joe’s Portfolio had turned into spectively. year time horizon’’ and that GNMA put op- a major problem posing substantial risks for By December 31, 1986, USAT’s problems tions would be used to hedge ‘‘the potential the future. A January 24, 1986 memorandum with its swaps and low coupon MBSs were so cash shortfall if the asset disposal does not from Gross to Gerald Williams questioned obvious that Hurwitz and his core group of cover the liability retirement.’’ Despite whether the MBS sales were ‘‘honest to executives and directors should have ad- these statements, Sandy Laurenson, who was goodness sales that still leave us with the dressed them. Peterson Consulting has ana- hired to manage UMBS, has admitted that same yield that we had before’’ or whether lyzed the status of Joe’s Portfolio as of De- USAT did not follow the Statement of Pur- ‘‘we have penalized our profits for the next cember 31, 1986 and concludes that steps pose for the subsidiary. Instead, with the full five to ten years on our portfolio to take could have been taken that would have re- knowledge and approval of the Investment that profit.’’ Gross wrote to Huebsch and duced the losses USAT ultimately incurred. Committee, USAT, through Laurenson, en- Gerald Williams on February 6, 1986, noting By December 31, 1986, USAT held relatively gaged in a leveraged ‘‘roll of the dice’’ in her that if you replace a 121⁄2% MBS with an low yielding MBSs and high cost swaps. By management of UMBS. The principal goal 111⁄2% MBS ‘‘and still have to match it up holding the low yielding MBSs, without any

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00106 Fmt 0666 Sfmt 0634 E:\CR\FM\A20DE8.262 pfrm07 PsN: E20PT1 December 20, 2001 CONGRESSIONAL RECORD — Extensions of Remarks E2445 hedges to protect against loss in the event shares. In August 1982 UFG agreed to merge nor its predecessor ever signed a separate net that interest rates increased, USAT exposed with First American Financial of Texas. The worth maintenance agreement it had no such itself to losses in the future if interest rates Bank Board approved the merger effective obligation, and (2) because it did not become increased. In fact, rates did increase begin- April 29, 1983 and First American’s insured the legal owner of this Block of stock until ning in April 1987, and the ultimate sale of subsidiary was merged into USAT. As part of after USAT failed, it never exceeded the 25 the MBSs from Joe’s Portfolio resulted in a the merger, UFG, as USAT’s holding com- percent threshold. loss of $107 million. Even after deducting $12 pany, was required by the Bank Board to c. Hurwitz Dominated USAT, UFG, MCO and million of gains USAT extracted from the enter into an agreement whereby UFG FDC portfolio after December 31, 1986, and taking agreed to maintain the net worth of USAT as Hurwitz was the controlling force of USAT, into account the spread between the yield on required by federal regulation. Resolution UFG, MCO and FDC. He was Chairman of the the MBSs and the repos funding them, USAT No. 83–252 of the FHLBB, imposed the fol- Board of MCO and it largest stockholder. He still lost about $80 million on the MBSs from lowing terms, among others, on UFG: was the Chairman of the Board of UFG. He Joe’s Portfolio. If the MBS portfolio had [T]he subject acquisition [is] hereby ap- also served as UFS’s President and Chief Ex- been sold on December 31, 1986, a gain of ap- proved, provided that the following condi- ecutive Officer. He was a member of UFG’s proximately $9 million would have resulted. tions are complied with in a manner satisfac- Executive Committee and the UFG/USAT Thus, USAT’s failure to act on December 31, tory to the [FHLBB’s] Supervisory Agent at Strategic Planning Committee. Hurwitz was 1986, increased USAT’s MBS losses by about the Federal Home Bank of Little Rock (‘‘Su- also a de facto director and senior officer of $89 million. pervisory Agent’’): USAT. He functioned as an active member of When both the swaps and the MBSs from ‘‘6. Applicant shall stipulate to the [Fed- the Board, if not its de facto director and sen- Joe’s Portfolio are taken into account, the eral Savings and Loan Insurance Corpora- ior officer of USAT. He functioned as an ac- net loss incurred by USAT as a result of its tion] that as long as it controls the Result- tive member of the Board, if not its de facto failure to liquidate Joe’s Portfolio on or ing Association [United Savings], Applicant chairman. He directed and controlled about December 31, 1986, was about $51 mil- shall cause the net worth of the Resulting USAT’s investment activity; he regularly at- lion. Peterson Consulting has concluded that Association to be maintained at a level con- tended Board and Committee meetings; he the swap agreements could have been termi- sistent with that required by Section selected USAT officer and directors; he con- nated at a cost of $149 million on December 563.13(b) of the Rules and Regulations for In- trolled and dominated virtually all of 31, 1986. By not terminating the agreements, surance of Accounts, as now, and hereafter USAT’s activities. No significant decision USAT ended up making $52 million of net in effect, of institutions insured 20 years or concerning USAT’s affairs was undertaken payments on the swaps until they were ter- longer and, as necessary, will infuse suffi- without his approval. minated at a cost of about $59 million, or a cient additional equity capital, in a form Hurwitz controlled the affairs of USAT total loss after December 31, 1986 of about satisfactory to the Supervisory Agent, to ef- both through direct particpation and $111 million. Arguably the failure to termi- fect compliance with such requirement.’’ through the actions of a core group of USAT nate the swaps on December 31, 1986 reduced On October 31, 1983 USAT and UFG caused officers or directors (‘‘the core group’’), USAT’s swap losses by approximately $38 to be delivered to the Federal Home Loan which included Barry Munitz (USAT Direc- million. Even after taking into account that Bank a written net worth maintenance com- tor), George Kozmetsky (USAT Director), the swap loss would have been $38 more had mitment. The commitment was signed by Jenard Gross (USAT ’s Chief Executive Offi- USAT liquidated the portfolio and termi- the Chairman of the Board of UFG and stat- cer), Michael Crow (USAT’s Chief Financial nated the swaps on December 31, 1986, the ed: Officer), Arthur Berner (USAT’s Executive ‘‘[The] Chairman of United Financial MBS loss would have been $89 million less, Vice President and General Counsel) and Group, Inc., [does] hereby stipulate that as resulting in net losses of $51 million attrib- Ronald Huebsch (USATs Executive Vice long as United Financial Group, Inc. controls utable to USAT’s refusal to face up to the President for Investments). Many members United Savings Association of Texas, it will problem of Joe’s Portfolio. of the core group held positions not only cause the net worth of United Savings to be We propose to assert a claim against In- with USAT but also with UFG and MCO. maintained at a level consistent with that vestment Committee members and attendees Barry Munitz (‘‘Munitz’’) was a director of required by Section 563.13(b) of the Rules and Hurwitz, Gross, Munitz and Crow for gross MCO. He was also a director of UFG from Regulations for Insurance of Accounts, as negligence for failure to address the prob- 1983 through 1988 and served on UFG’s Execu- now or hereafter in effect, of institutions in- lems with Joe’s Portfolio on or about Decem- tive Committee from 1983 and 1988. He was sured 20 years or longer, and, as necessary, ber 31, 1986. We will also contend that their Chairman of the UFG Executive Committee will infuse sufficient additional equity cap- failure to address the problem was a breach from February, 1985 through 1988. Jenard ital, in a form satisfactory to the Super- of their fiduciary duty of loyalty because it Gross (‘‘Gross’’) was a member of the UFG visory Agent, to effect compliance with such was intended to extend the life of USAT by Board of Directors from 1985 through 1988. He forestalling the regulatory intervention that requirement.’’ Pursuant to the commitment, UFG agreed was President and Chief Executive Officer of might have resulted if the swap loss had been UFG during the same time period. Michael recognized on December 31, 1986 or early in that it would infuse equity capital in a form satisfactory to the Supervisory Agent to Crow (‘‘Crow’’) was a director of UFG in 1988 1987. We will allege that Hurwitz is liable as and the Chief Financial Officer of UFG from a de facto director and that he aided and maintain compliance with regulatory net worth requirements. 1984 through 1988. Arthur Berner (‘‘Berner’’) abetted the other defendants in the viola- became director of UFG in 1988 and served on tions of their duties. On June 29, 1983, MCO and Federated filed an application with the Bank Board for ap- UFG’s Executive Committee. George 2. Net Worth Maintenance: Breach of the Duty proval to acquire control of USAT through Kosmetsky was a director of MCO and UFG. of Loyalty Aiding and Abetting Breach of the acquisition of up to 35% of UFG’s shares. He also served on UFG’s Audit Committee. the Duty of Loyalty a. Hurwitz Owed A On December 6, 1984, the Bank Board granted d. USAT’s Net Worth Deficiency Duty Of Loyalty To USAT conditional approval of the application of From the outset of Hurwitz’s involvement By virtue of his position as a de facto offi- MCO and Federated to acquire control of with USAT, the institution was deeply trou- cer and director and controlling person of USAT. The condition the Bank Board im- bled. Under his control, it grew steadily USAT, Hurwitz owned to USAT a duty of posed on MCO’s and Federated’s acquisition worse. As the institution’s financial health loyalty and a duty to protect and care for of control was that; ‘‘for so long as they di- plummented and its net worth declined, the interests of the institution. By virtue of rectly or indirectly control United Savings, USAT Board members serving at his request his position as a Board member and officer [MCO and Federated] shall contribute a pro undertook greater and greater risks. Rather at UFG and MCO (two of USAT’s holding rata share based on their UFG holdings, of than recognize USAT’s problems and con- companies), and as a director and control any additional infusion of capital . . . that front them constructively, Hurwitz, through person of Federated Development Company may become necessary for the insured insti- these USAT officers and directors (a) dra- (‘‘FDC’’), Hurwitz was in a position to cause tution to maintain its net worth at the level matically increased the liabilities of the As- these entities to honor their net worth main- required by the Corporation’s Net Worth sociation in violation of federal law, (b) gam- tenance obligations to USAT. Hurwitz inten- Regulation.’’ bled on large, cumbersome real estate tionally disregarded these duties and, indeed, In 1985 MCO entered into an option agree- projects with no realistic chance of success, devoted considerable efforts to helping UFG, ment with Drexel Burnam Lambert Group and (c) invested in complex financial instru- MCO and FDC avoid these responsibilities. (‘‘Drexel’’), which gave UFG the right to ments which investments were manipulated b. UFG’s, MCO’s and FDC’s Net Worth Mainte- ‘‘call’’ and Drexel the right to ‘‘put’’ the 7 to produce reported profits while in fact gen- nance Obligation percent of UFG’s stock held by Drexel. When erating multimillion dollar losses to USAT. In early 1982 Hurwitz began to acquire UFG combined with its other holdings, control of To avoid being called upon to comply with shares through companies he owned and con- this additional stock caused its total holding the obligation of UFG, MCO and FDC to trolled, including MCO Holdings, Inc. in UFG to exceed the 25% threshold. We be- maintain the net worth of USAT, Hurwitz (‘‘MCO’’) and Federated Development Com- lieve that this transaction made the net and his colleagues covered up the true state pany (‘‘FDC’’) or by having close colleagues worth maintenance obligation of the Board’s of the Association by a pattern of deceptive acquire the stock. By mid year, Hurwitz resolution applicable to MCO (a predecessor financial reporting and balance sheet manip- owned effective control of UFG, but held of Maxxam) and FDC. Our understanding of ulation. Gains were taken on certain securi- slightly less than 25% of its outstanding Maxxam’s position is that (1) since neither it ties transactions, while losses were left

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00107 Fmt 0666 Sfmt 0634 E:\CR\FM\A20DE8.265 pfrm07 PsN: E20PT1 E2446 CONGRESSIONAL RECORD — Extensions of Remarks December 20, 2001 imbedded in the portfolio; subsidiaries were fault by interest reserves of $17 million. 410 property for $42.5 million, with 75% sell- used to skirt liability restrictions; losses on Hurwitz, the Board, the SLC, and Stanley er-financing on a non-recourse basis. Al- real estate investments were repeatedly un- Rosenberg all share in the culpability for though USAT’s David Graham believed he derstated; and maturity matching credits this transaction which caused $57 million in had reached an agreement with Limited as were manufactured. The effect was to artifi- losses to the institution. to the material terms of the transaction, the cially maintain the reported net worth of 1. Potential Defendants deal collapsed soon after USAT retained, as USAT to protect the assets of UFG, MCO and USAT’s Board members who served on the its legal counsel, long-time Hurwitz friend FDC at the expense of USAT. SLC were grossly negligent in their failure (and Maxxam director) Stanley Rosenberg to Throughout much of 1987 and throughout to supervise USAT properly with respect to represent the Association in finalizing the 1988, even USAT’s reported capital did not its real estate lending practices. In abdica- transaction with Limited. On November 20, meet minimum regulatory standards. This tion of its responsibility in this known prob- the same day Limited returned, unexecuted, resulted, in substantial measure, from the lem area, the Board set a $70 million lending USAT’s letter of intent to purchase the prop- gross mismanagement of USAT for which limit for USAT’s SLC in the face of repeated erty for $38 million, 80% seller-financed, Hurwitz was responsible. On May 13, 1988, the warnings from regulators and Peat Marwick Rosenberg’s law partner Kenneth Gindy Bank Board advised USAT and UFG that that its lending practices and procedures began negotiations with Limited’s agent to USAT did not meet its regulatory capital re- were flawed and, in particular that its ADC sell the property to a different client of Rosenberg’s firm—Gulf Management Re- quirements as of December 31, 1987. The lending had severe problems. Given the insti- sources, Inc. (‘‘GMR’’). Indeed, Limited ulti- Bank Board directed UFG and UFG’s Board tution’s lending experience, such delegation mately agreed to sell the property to GMR to infuse capital sufficient to meet those re- amounted to a total abdication by the Board on terms more favorable to the purchaser quirements. UFG refused to abide by the of its responsibility to review and supervise and less favorable to Limited than those pre- written commitment to maintain USAT’s the institution’s lending activities. Indeed, it viously offered by Limited to USAT. Soon net worth. Similarly, MCO failed to infuse appears that the Board allowed the entire thereafter, Rosenberg became GMR’s 50% additional capital in accordance with its ob- real estate lending and investment activity partner in Park 410 West JV (‘‘Joint Ven- ligation. of USAT to operate with nominal internal ture’’), the entity formed to purchase the Hurwitz took no steps to encourage or controls and no oversight. Thus, the Real Es- property. compel UFG, MCO or FDC to honor their tate Investment Committee committed commitments although he had the power, in In the Spring of 1985, and prior to the clos- USAT to a substantial initial investment in ing with Limited, USAT accepted Rosen- fact, to do so. On December 30, 1988, the Bank Park 410 ($35 million), apparently without Board reiterated its request that UFG honor berg’s invitation to become his partner and Board knowledge or approval and in viola- agreed to pay all of Rosenberg’s financial ob- its net worth maintenance obligation. Again, tion of its authority. The SLC increased the UFG refused; Hurwitz did nothing. As of De- ligations to Joint Venture in exchange for commitment to $70 million—$80 million if half of Rosenberg’s 50% interest in Joint cember 30, 1988, USAT’s reported capital was the Board ratified the decision. Then the $534 less than the stipulated minimum. UFG Venture. In other words, USAT agreed to Board approved funding $80 million—all fund at least 50% of the projected $65 million is responsible for that full amount, but its without apparent concern that the project ability to respond may have been limited at acquisition, development and holding costs was not a bankable credit. The Board was in exchange for a one-fourth interest in the that time to the $35 to $40 million dollar grossly negligent in both its failures of su- range. Maxxam’s obligation, as interpreted project. The Real Estate Investment Com- pervision and in actually approving the park mittee (‘‘REIC’’) with Hurwitz in attendance by OTS, is roughly 30 percent of the $534 mil- 410 loan on terms extremely favorable to made the investment decision based on lit- lion, i.e., Maxxam’s percentage of UFG’s Rosenberg based on a cursory presentation tle, if any, independent due diligence. In- stock times the capital deficiency, or rough- by the SLC. Only Board member Winters stead, the REIC relied on wildly optimistic ly $160 million. Maxxam’s current reported voted to disapprove the loan. profit projections prepared by GMR (Rosen- capital is in the $140 million range. Officers and directors who served on the As part of his duty of loyalty to USAT, berg’s client and partner) and a totally dis- SLC will also be charged with gross neg- torted appraisal that gave a cumulative, Hurwitz had an obligation to cause UFG, ligence because they knew about both regu- MCO and FDC to make such contributions. undiscounted market value of $72.5 million latory criticism and Peat Marwick’s warning only if (and when) the property was sub- As a UFG, MCO and FDC director, officer, and that USAT’s lending activities (particu- and control person, Hurwitz was in a position divided and ready for development. The REIC larly ADC loans) had caused severe losses to described the appraisal as being ‘‘on an as is to take such action. He intentionally refused the institution. Despite this, the SLC gave to do so, thereby breaching his duty of loy- basis’’, but the appraisal expressly warned the Park 410 transaction only a cursory re- that it ‘‘does not represent the present as is alty to USAT. The consequent loss is in ex- view and relied instead on the borrower’s cess of $150 million. market value of the land,’’ such a valuation economic analysis and on a defective ap- being ‘‘beyond the scope’’ of the appraisal. VI. USAT’s Park 410 Loan [For Information praisal that was delivered orally before fund- Hurwitz’s influence was evident from the be- Purposes] ing, but not submitted in writing until after ginning of USAT’s involvement with the In April 1986, USAT made an $80 million the loan closed. The SLC allowed Hurwitz’s Park 410 property. Two members of non-recourse loan to an entity which was influence to compromise its deliberations Hurwitz’s core group served on the REIC— owned by Stanley Rosenberg, a prominent and the proper exercise of its duties. Gross and Crow. San Antonio attorney and close friend and Absent statute of limitations problems, Outside director James R. Whatley con- business colleague of Charles Hurwitz. The FDIC would also propose to sue Stanley firmed in his interview that the Park 410 in- loan was grossly imprudent. It was made Rosenberg for the damages incurred by vestment decision committing USAT to $35 without any significant underwriting in a de- USAT in the Park 410 loan transaction. million was never presented to the Board of clining real estate market when USAT offi- Rosenberg was both counsel to USAT and a Directors. The REIC’s authority to commit cials and the borrowers knew that the participant in the transaction. Knowing the the institution to an investment, without project was doing poorly and had little significant risks inherent in the loan, he prior Board approval, was limited to $2.5 mil- chance of success. The loan was also made nevertheless facilitated and encouraged lion. The Board took no steps to exercise despite warnings from regulators. For exam- USAT to complete the transaction. FDIC scrutiny over real estate investment deci- ple, in January 1985, the Texas Savings and would allege that Rosenberg used his conflict sions or, indeed, to even monitor what the Loan Department advised the Board and sen- position with USAT for his personal benefit REIC was doing. The fact that a commit- ior management that USAT’s lending port- and financial gain and that he aided and ment of such magnitude could be made with- folio was seriously flawed and that scheduled abetted the officials of USAT in the breach out Board approval or awareness dem- items constituted 105% of net worth. While of their fiduciary duties. onstrates the Board’s lack of care and its many of the scheduled items noted in the 2. Narrative Description of the Claim conscious indifference to the need to estab- Texas examination predated the Hurwitz re- Park 410 was a 427 acre tract of vacant and lish effective internal controls. USAT’s inde- gime, the comments represented a warning unimproved real estate located in western fensible investment in Park 410 set the stage to the institution about the fragile nature of San Antonio near the proposed site for Sea (and perhaps the excuse) for it to more than its portfolio. Added to these regulatory World. This general area had attracted con- double its financial exposure in the Park 410 warnings were repeated comments by siderable developer interest and many com- project. In the Spring of 1986, and a few USAT’s outside auditor, Peat Marwick, prior peting office/retail/residential developments months after closing the purchase from Lim- to the approval of the loan, that USAT’s real were being proposed. Its large size and loca- ited, USAT committed to become the lender estate lending was creating substantial prob- tion made Park 410 a ‘‘high profile’’ project for the entire project, with an exposure of up lems for the institution, that appraisals in of the type in which Hurwitz wanted USAT to $80 million dollars. numerous loan files were deficient, and that to be involved. Graham (the SLC chairman) now admits foreclosures and delinquencies were rising On October 10, 1984, USAT received a that the Park 410 project ‘‘got off to a slow rapidly. USAT’s Board and senior officers signed, non-binding letter of intent from start,’’ that the project was ‘‘too big, too dif- chose to ignore these warnings, in part, be- Park 410 West, Ltd. (‘‘Limited’’), a partner- ficult,’’ that there was trouble in the San cause the making of the loan generated im- ship consisting of Alamo Savings (‘‘Alamo’’) Antonio real estate market, and that Joint mediate fees, i.e. reported income of $2.5 mil- and developers Robert Arburn and C. R. Venture could not get outside funding to de- lion, for USAT. The loan was kept from de- McClintick, offering to sell USAT the Park velop the project. In the Fall of 1985, Joint

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00108 Fmt 0666 Sfmt 0634 E:\CR\FM\A20DE8.268 pfrm07 PsN: E20PT1 December 20, 2001 CONGRESSIONAL RECORD — Extensions of Remarks E2447 Venture applied to USAT for a $77.8 million to Rosenberg and GMR, but adverse to 3. Serious Statute of Limitations on the Parks loan to pay off the acquisition debt still USAT. If it was going to be involved at all, 410 Loan owed Alamo and McClintick, to provide as the lender of ‘‘last resort’’ for the bor- Because the Park 410 loan closed in April funds for development and to pay the holding rowers, USAT could have (and should have) 1986, more than two years before USAT’s costs of the project (taxes, interest, etc.). dictated terms which provided maximum failure, there is a serious statute of limita- Again, Hurwitz was involved from the start. protection for the institution. Instead, the tions problem on this claim that we do not Crow recalls Hurwitz presenting the loan loan was non-recourse to the borrower, and believe we can overcome. In light of the proposal to Graham and Childress. Graham guarantees were for only 25% of the loan and Fifth Circuit’s opinion in Dawson, the Su- reported directly to Hurwitz, as well as to took effect only after foreclosure and the preme Court’s refusal to consider whether a members of the SLC concerning negotiations declaration of a deficiency. The guarantors federal rule should be adopted under which in late 1985 and early 1986, and Hurwitz and were also allowed to credit their personal negligence by a majority of the directors Rosenberg participated directly in some of guarantees for any amounts drawn against would toll the statute of limitations, the the negotiations. Hurwitz also participated their $10 million letters of credit. In addi- failure of Congress to address the statute of in the 12/9/85, 1/6/86 and 3/17/86 SLC meetings tion, various improper disbursements were limitations problems through legislation, where the loan was discussed and ultimately made (without objection from USAT) out of and the Fifth Circuit’s recent opinion in Ac- approved. SLC member Jeff Gray recalls it the loan proceeds, including a $400,000 ‘‘loan tion, we do not believe there is a basis under being widely known and understood among fee’’ to Rosenberg and an undisclosed man- existing law for defeating a statute of limi- senior officials that Hurwitz wanted USAT agement fee to Rosenberg of $62,500 at clos- tations motion based on Park 410. Con- to make the Park 410 loan. ing and $75,000 per year thereafter. The Despite adverse comments from its Texas sequently, we do not recommend going for- transaction allowed the borrowers to avoid ward with claims arising out of Park 410. regulator regarding its real estate lending or minimize virtually all immediate ‘‘hard VI. Applicable Legal Theories and Defenses problems and in the face of Peat Marwick’s dollar’’ commitment to the project. repeated warnings in August 1984, February The deficiencies described above and the We recommend pursuing these claims with 1985 and October 1985 that ADC loans were a actions and inactions of USAT’s Board and the following legal theories: (A) breach of fi- problem for USAT and that real estate mar- SLC provide ample support to assert claims duciary duty of loyalty, (B) gross negligence kets were declining, the SLC approved the for gross negligence and breach of fiduciary and breach of fiduciary duty of care, and (C) loan on March 17, 1986, and thereby agreed to duty. Clearly the Board’s conduct con- knowing participation in and aiding and lend the Joint Venture $80 million, but made stituted conscious indifference to the finan- abetting breach of fiduciary duty. Our rea- its obligation to advance funds beyond $70 cial safety and soundness of the Association, sons are summarized below. million contingent upon first receiving particularly in view of the fact that (i) this A. Breach of Fiduciary Duty of Loyalty Board approval. Hurwitz and the SLC ap- was the largest loan ever made by USAT proved the loan despite knowledge that Joint Because of the role that USAT played in and, in the face of the warnings from Peat Venture had been unable to secure financing maintaining Hurwitz’s relationship with Marwick and state regulators, required care- from any other lender and in the face of sig- Drexel, the financial interest and net worth ful scrutiny (ii) SLC members knew that nificant deterioration of the San Antonio maintenance exposure that UFG, MCO and other lenders had refused to finance the real estate market. FDC had in USAT, and the business relation- project (iii) the financial projections were When the SLC approved the loan it had not ship with Rosenberg from which the bene- wildly optimistic and the appraisals flawed yet received the appraisal which was in- fitted personally, Hurwitz profited the most (iv) market conditions were getting worse tended to be, but was not, in compliance from the actionable transactions and stood not better and, (v) USAT could have walked with R41–b. Instead, Hurwitz and the SLC to lose the most had the plug been pulled on away from its initial ‘‘investment’’ in the based their analysis and approval on the bor- USAT sooner. Similarly, the other proposed project for $4.5 million. Instead, the SLC and rower’s (GMR) sales projections and on a dis- individual defendants were so closely tied to the Board (in large part because of Hurwitz’s torted preliminary appraisal by a Houston Hurwitz and his business interests that they influence) chose to commit up to $80 million appraiser having no apparent prior experi- compromised their ability to place USAT’s to a project which they knew or should have ence in San Antonio that gave a cumulative, interests ahead of Hurwitz’s. Munitz, Gross, known had a high probability of failure. undiscounted market value of $88 million. and Crow were dual UFG/USAT directors and GMR’s projections assumed sales of more As noted above, if there were no statute of received generous compensation from USAT. than 65 acres per year, a rate of absorption limitations problem with this claim, FDIC All but Crow had other business connections even higher than its projection of a year ear- would also propose to sue Stanley Rosenberg with Hurwitz that fostered divided loyalties. lier and at higher prices. In fact, it would be for his role in the transaction. Without ques- Munitz was also an officer and/or director of more than four years before the first acre tion, Rosenberg was at the core of Park 410 MCO and FDC at various times. Gross had an was sold at Park 410. and influenced many of USAT’s actions or equity interest in FDC. As a consequence of The final narrative appraisal sent to USAT inactions through his relationship with these relationships, UFG and Hurwitz prof- after the SLC approved the loan was grossly Hurwitz. Rosenberg was originally USAT’s ited at USAT’s expense. deficient. It relied upon stale comparables counsel in the transaction. However, he B. Gross Negligence and Breach of Fiduciary made a year earlier when the market was failed to close a transaction in which USAT, Duty of Care his client, would have had 100% of the bene- stronger, failed to quantify or explain ad- Many of our claims against Hurwitz and justments to comparables, failed to consider fits in exchange for 100% of the risk. Instead, he negotiated a series of deals which resulted the other proposed individual defendants will the impact of the glut of similar projects in be based on allegations of gross negligence the area and failed to contain all three ap- in Rosenberg himself having 25% of the prof- it potential (plus $462,500 of USAT’s cash), and breach of fiduciary duty of care. Recent proaches to value. Not surprisingly, both federal court decisions in Texas interpreting state and federal examiners strongly criti- another client had a 50% interest in the prof- its, and Rosenberg’s client USAT had 50% of Texas law preclude recovery for simple neg- cized the appraisal. ligence. Therefore, we will have to contend The loan closed on April 17, 1986, with the downside risk but only 25% of the upside potential. that the defendants were guilty of gross neg- USAT making an initial advance of $45.6 mil- ligence—a more rigorous standard. Although Given his knowledge, Rosenberg should lion. Three weeks later on May 8, 1986, the we believe that the decisions to make the have counseled USAT not to pursue the Park loan was approved by USAT’s Board of Direc- Park 410 loan and the UMBS investment, and 410 investment. Rosenberg breached his pro- tors, with Hurwitz, Kozmetsky, Gross and those with respect to Joe’s Portfolio, were fessional duty as an attorney by not warning Munitz in attendance. The Board package for grossly negligent, a recent decision by the USAT that it was on the verge of becoming this meeting contained the five page loan Texas Supreme Court announced a new a victim of a potentially illegal Texas land proposal approved by the SLC. This proposal standard of gross negligence that—if ap- flip (i.e., paying Alamo and McClintick three provided, at best, a cursory analysis of a plied—will make it much more difficult to times what they paid for the property less loan of this size and complexity. The min- prove our claims. utes of the meeting reflect no presentation than a year before), that the market was de- or discussion of the loan prior to Board ap- teriorating and that no other financial insti- C. Knowing Participation in and Aiding and proval. According to the minutes, outside di- tution would finance the deal. He failed to Abetting Breach of Fiduciary Duty rector Wayne C. Winters voted against the protect USAT’s interests as he was obligated Under Texas law, secondary liability theo- loan because of concerns about the loan to do. He compounded that breach by entic- ries, such as knowing participation in or aid- amount and the value of the property. Ac- ing and encouraging USAT into a deal that ing and abetting breach of fiduciary duty, cording to Graham, while Hurwitz did not he knew potentially would benefit him by can be used to reach the activities of cul- force USAT to make the loan, everyone on placing USAT at enormous risk. For this he pable persons, like Hurwitz or Rosenberg, the SLC and on USAT’s Board knew that is liable for malpractice and for this same who were neither officers nor directors of Rosenberg was a close friend of Hurwitz and conduct—irrespective of Rosenberg’s status USAT. Hurwitz can be held liable for the that Hurwitz was enamored with putting as USAT’s attorney—he is liable for aiding breaches of duty of Munitz, Gross, and the USAT in play on a big real estate deal in San and abetting USAT officers in the breach of others where he had knowledge that the oth- Antonio. the officers’ duties. Rosenberg and his law ers were breaching their duty to USAT and Hurwitz, the SLC and the Board permitted firm received $462,000 from the loan proceeds provided substantial assistance, direction or the loan to be made on terms very favorable and undisclosed management fees. encouragement. Based on the facts, Hurwitz

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00109 Fmt 0666 Sfmt 0634 E:\CR\FM\A20DE8.271 pfrm07 PsN: E20PT1 E2448 CONGRESSIONAL RECORD — Extensions of Remarks December 20, 2001 should be sued for his knowing participation sions. Furthermore, UMBS’s day to day in- $80 million was invested in UMBS in 1987 in breaches of fiduciary duty by the officer vestment decisions were controlled and di- after the initial investment had already and director defendants. rected by the USAT defendants, thus making begun to turn sour. D. Anticipated Defenses the line between the two entities for pur- Hurwitz’s Involvement—Hurwitz will as- poses of investment decision-making non-ex- sert that he cannot be held liable because he Business Judgment Rule The defendants istent. was never an officer or director of USAT. He will contend that the decisions we challenge Statute of Limitations—The defendants will also argue that even as a director of were business judgments for which they can- will argue that the statute of limitations has UFG, he did not exercise authority or con- not be held liable under Texas law. Recent expired on our proposed claims. Texas law trol over USAT and did not knowingly par- decisions in federal courts in Texas suggest requires claims of negligence, grow neg- ticipate in breaches of fiduciary duty by that the business judgment rule will be ap- ligence and breach of fiduciary duty to be USAT’s officers and directors. Because plied liberally to protect directors and offi- commenced within two years of accrual, un- Hurwitz, in fact, was actively involved in cers from claims for bad management deci- less limitations are tolled by equitable prin- virtually every aspect of USAT’s business, sions, even when large losses result. The ciples. In the Dawson case, the Fifth Circuit and especially in the management of its se- presence of ulterior motives, such as decided that the statute would not be tolled curities portfolio, we have a reasonable Hurwitz’s relationship with Drexel, his de- on an ‘‘adverse domination’’ theory unless a chance to overcome this defense. sire to avoid net worth maintenance claims, majority of the directors were guilty of more VII. Cost Effectiveness and Assessment of Pro- and his relationship to Mr. Rosenberg would than negligence in approving the challenged posed Litigation be relevant in our effort to avoid application corporate action, or in failing to discover of the business judgment rule. If approved, a lawsuit against the proposed wrongful conduct by others. The federal trial defendants would be filed in the U.S. District The defendants will contend that the deci- courts in Texas had split on the actual level sion to invest in UMBS was a reasonable Court for the Southern District of Texas, of culpability required, with some courts Houston, seeking approximately $300 million business decision under the circumstances. holding that gross negligence by a majority They will argue that the absence of alter- in damages. We propose using the law firm of of directors is sufficient to toll the statute Hopkins & Sutter and the minority owned native investments, given the downturn in and others holding that more culpable con- the Texas real estate market, and USAT’s firm of Adorno & Zeder. Both firms have duct, such as fraud, is required. The Supreme Legal Services Agreements with the FDIC need for earnings, made a leveraged invest- Court refused to consider in Dawson whether and do not exceed any fee cap. ment in MBS risk controlled arbitrage com- a federal rule should be adopted under which Potential recovery sources include the pro- pletely appropriate. They will point out that negligence by a majority of the directors posed defendants, who have an aggregate net UMBS had a positive spread and reported will toll the statute. This question has been worth of $150 million. In addition, the by- profits from its formation until the date a answered in the Fifth Circuit by the recent laws of MCO (now Maxxam), provide for the receiver was appointed for USAT, with re- decision in RTC v. Acton, 49 Fd.3 1086 (5th indemnification of any person who serves as ported 1986 earnings of $906,398, 1987 earnings Cir. 1995), holding that under Texas law, only an officer or director of a subsidiary (which of $37,479,283 and 1988 earnings of $20,251,468. self-dealing or fraudulent conduct, and not would include UFG and possibly USAT) or, They presumably will contest Laurenson’s gross negligence, is sufficient to toll the at the request of MCO, serves as an officer or account that the Investment Committee statute of limitations under the doctrine of director of any other corporation. Thus, gave its approval for a ‘‘dice roll.’’ They will adverse domination. Munitz (who was an officer and director of argue that it is inappropriate to evaluate The first $100 million of USAT’s equity in- MCO and/or FDC), may be entitled to indem- their investment strategy based on the re- terest in UMBS was recorded on the books of nification from Maxxam for his wrongful sults of a forced liquidation of the portfolio UMBS in November and December, 1986— acts as a USAT director and officer. Hurwitz after the receivership appointment, particu- more than two years before a receiver for may also be entitled to indemnification for larly because, if the MBSs had been held for USAT was appointed. After December 30, 1986 his wrongful acts as a director and officer of a longer time, they might have been sold at and before May 31, 1987, USAT raised its eq- UFG and because of his activities at USAT a profit after interest rates declined. uity contribution in UMBS by a total of $80 as a member of the UFG/USAT Strategic Nonetheless, there is a substantial risk million. In March 1987, USAT’s equity in Planning Committee. Maxxam is a publicly that the decisions we challenge will ulti- UMBS increased from $100 million to $150 traded company with market capitalization, mately be held to constitute business judg- million. In May 1987, it increased from $150 as of March 15, 1994, of $223 million and total ments for which we cannot recover losses. million to $180 million. We evaluated wheth- assets of $3.2 billion. Pre-Insolvency Duty. The defendants will er a claim could be made for USAT invest- The claims described in this memorandum argue that until USAT became insolvent, the ments in UMBS after December 30, 1986— arising out of the misconduct of officers and fiduciary duties of directors and officers ran within the Texas two year statute of limita- directors are large and complex. They are only to the institution’s equity holders, not tions. We will have to establish that losses also subject to a number of recent adverse to its creditors and depositors. Because resulted from the investments USAT made decisions by the Fifth Circuit Court of Ap- USAT was not reporting insolvency at the in UMBS in 1987. Because the net ‘‘out of peals, the Southern District of Texas and the time of the actions we challenge, the defend- pocket’’ loss on the entire $180,000,000 equity Texas Supreme Court which restrict sub- ants will argue that they had a duty to un- contribution was only $64,997,000, we would stantive liability and FDIC’s ability to reach dertake any and all lawful means to keep the have to argue that the last money invested significant claims accruing prior to Decem- institution open for as long as possible, even was the first money to be lost. The logic of ber 1986. As a consequence, FDIC’s Complaint if that course of conduct aggravated the that position may not be accepted by a will be vigorously challenged and appears losses to the FDIC, depositors and creditors. court. If it is not, it appears that our claim vulnerable to motions to dismiss and mo- We believe that this argument is without will fail because, arguably, USAT recovered tions for summary judgment. There is at merit and that the duties of directors and of- its entire 1987 investment when UMBS was least a 70% chance that these claims will be ficers run to the corporation, not to its liquidated and the ‘‘loss’’ suffered was a loss disposed of adversely to the FDIC on such shareholders. We will contend that directors of $64,997,000 of the contribution it made be- motions relating to the statute of limita- of financial institutions have very broad fi- fore December 30, 1986, prior to the two year tions. If, however, the claims survive sum- duciary duties to persons other than the statute of limitations. mary judgment and proceed to jury trial, the shareholders, including depositors. We will Regulatory Approval—The defendants also odds of a favorable outcome (by settlement also contend that no director or officer may are likely to contend that the regulators or verdict) improve, but do not exceed 50%. breach the fiduciary duty of loyalty, regard- knew about or approved USAT’s investment These variables make it difficult, if not im- less of the solvency of the institution. We activities in MBSs. Regulators did not pro- possible, to quantify the chances of success will argue that the defendants engaged in hibit MBS investments, but neither did they overall. speculative transactions to extend the life of direct or authorize USAT to do what it did. It is estimated that pursuing this matter USAT when the viability of USAT was ten- Moreover, the evidence will show that USAT to trial will cost approximately $4 million in uous, at best, and there was no reasonable did not affirmatively disclose (1) the losses fees and expenses, including expert witness expectation that it could continue in busi- inherent in its interest rate swaps from fees, and an additional $2 million in fees and ness. USAT Mortgage Finance in late 1985 or from expenses will be incurred through trial. Our Standing/UMBS—The defendants will USAT’s ‘‘Joe’s Portfolio’’ in early 1986, (2) downside risk is limited somewhat by the argue that the FDIC as USAT’s Receiver the fact that its ‘‘roll down’’ program for likelihood of an early statute of limitations does not have standing to challenge the in- ‘‘Joe’s Portfolio’’ resulted in a negative motion. It is thus likely that we will incur vestment activities of UMBS, a subsidiary. spread between the income on the MBSs and substantially less than the full cost of a trial They will argue that the Receiver does not the cost of the swaps, and that the swap if we are not going to prevail on the statute own those claims. The UMBS claims, how- problem could have been handled less expen- of limitations issue. To date we have in- ever, are based upon claims arising out of sively and with less risk for USAT, (3) the curred approximately $4 million in fees and USAT activity, i.e., USAT’s loss of $97 mil- fact that $100 million was invested in UMBS expenses for the investigation by outside lion as a result of the decision to invest $180 despite the disastrous experience with ‘‘Joe’s counsel, approximately $400,000 by the Office million of USAT money in UMBS without Portfolio,’’ which could only be understood if of Thrift Supervision and approximately proper controls and protection. The Receiver one knew about the swap dimension of the $600,000 for in-house investigation and in- clearly has standing to challenge such deci- problem and (4) the fact that an additional house attorney costs. Claims of this nature

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00110 Fmt 0666 Sfmt 0634 E:\CR\FM\A20DE8.274 pfrm07 PsN: E20PT1 December 20, 2001 CONGRESSIONAL RECORD — Extensions of Remarks E2449 and magnitude are very difficult to value. 1983 by Charles E. Hurwitz. Hurwitz lever- 4. Appears to FDIC inappropriate to in- That noted, if the case survived statute of aged the institution through speculative and clude OTS representatives in the meeting to limitations defenses, the estimated settle- uncontrolled investment and trading in large discuss possible settlement of its claims ment value would be $20–$40 million. mortgage-backed securities portfolios, with- against Hurwitz since OTS has not yet ap- July 28, 1995 out reasonable hedges, to $4.6 million in as- proved any suit against Hurwitz or his hold- Memorandum to: Catherine L. Hammond, Of- sets. Investments lost value and USAT was ing companies and OTS’ participation at fice of the Executive Secretary. declared insolvent and placed into FSLIC re- such meeting may be perceived by others as From: Robert J. DeHenzel, Jr., Counsel, Pro- ceivership on December 30, 1988. Loss to the an effort by the Executive Branch to influ- fessional Liability Section. FSLIC Resolution Fund is $1.6 billion. ence OTS’s independent evaluation of its in- Subject: Authority to Institute PLS Suit, In- 2. While Hurwitz was a controlling share- vestigation. stitution: United Savings Association of holder and de facto director of USAT he ac- V. FSLIC Resolution Fund (‘‘FRF’’) Issues Texas, Fin #1815, Proposed Defendants: quired, through a hostile takeover and with 1. The Financial Institutions Reform, Re- Former directors and officers, defacto di- the strategic and financial assistance of covery and Enforcement Act of 1989 rector and controlling person Charles Drexel Burnham Lambert, Inc., Pacific Lum- (‘‘FIRREA’’) (enacted Aug. 9, 1989), accord Hurwitz. ber Company, a logging business based in special treatment to certain savings & loan The enclosed memorandum requesting au- northern California. As a result, Hurwitz associations that failed prior to its enact- thority to institute a PLS suit is on the came to control the old growth, virgin red- ment. The FRF obtains its funds from the Board agenda for Tuesday, August 1, 1995. woods that are the principal focus of the Treasury and all recoveries from the assets Because Mr. Bovenzi is out of town and has Headwaters Forest. or liabilities of all FRF institutions are re- not had the opportunity to sign, we are not II. FDIC Litigation quired to be conveyed to Treasury upon the enclosing the original with the distribution 1. On August 2, 1995, FDIC as Manager of conclusion of all FRF activities. The statute today. We anticipate securing his signature the FSLIC Resolution Fund filed a lawsuit does not establish a date for the termination on Monday morning, and will then promptly against Mr. Hurwitz seeking damages in ex- of the FRF. FRF fund always in the red due have the original forwarded to your office. cess of $250 million. to huge cost of these thrift failures. The Deputies to the Directors and the Gen- a. Complaint contains three claims: 2. To date, FRF owes the Treasury approxi- eral Counsel are aware that Mr. Bovenzi has * Count 1 alleges breach of fiduciary duty mately $46 billion. not had the opportunity to sign and have no by Hurwitz as de factor director and control- 3. FDIC has decided that if Hurwitz offered objection to this procedure. ling shareholder of USAT by failing to com- the redwoods to settle the FDIC claims, we Please call me if you have any questions ply with a New Worth Maintenance Agree- would be willing to accept that proposal. Be- whatsoever. ment to maintain the capital of USAT; cause any assets recovered from FRF insti- JACK D. SMITH * Counts 2 and 3 allege gross negligence and tutions are required to eventually be turned RICHARD ROMERO aiding and abetting gross negligence in es- over to Treasury, the trees (i.e. the land con- tablishing, controlling and monitoring two veyance) could conceivably be transferred to large mortgage-backed securities portfolios. Treasury. RESOLUTION 4. May need legislation to assist in transfer 2. FDIC has authorized suit against three Whereas, pursuant to authority contained of land and other details of such a convey- other former directors of USAT that we have in the Federal Deposit Insurance Act and/or ance. The mechanics of such a transfer is not not yet sued; a tolling agreement with these pursuant to applicable state or federal law, a focus of FDIC’s current efforts, which are potential defendants expires on December 31, the Federal Deposit Insurance Corporation to persuade Hurwitz of liability and to seri- 1995. The court may order FDIC to decide to (‘‘FDIC’’), acting as conservator or receiver ously consider settlement. add them as defendants prior to that date. or in its corporate capacity has the author- 3. Status of FDIC Litigation: Pursuant to VI. Impediments to FDIC Direct Action Against ity to bring civil actions for monetary dam- the Federal Rules of Civil Procedure, the Trees ages against directors or officers, outside parties—through counsel—have met and ex- 1. FDIC has no direct claim against Pacific professionals, or fidelity bond companies (or changed disclosure statements that list all Lumber through which it could successfully their successors, heirs or assigns) of insured relevant persons and documents that support obtain or seize the trees or to preserve the depository institutions who fail to fulfill our respective positions. Moreover, the par- Headwaters Forest. Neither Maxxam, Inc. their responsibilities (‘‘professional liability ties have agreed to a scheduling order that (which owns Pacific Lumber and is con- claims’’); and reflects a quick pre-trial period. All dis- trolled by Hurwitz) nor Pacific Lumber are Whereas, the FDIC has investigated and covery is to be concluded by July 1, 1996. The defendants in FDIC’s suit. There is no direct evaluated professional liability claims that court has set a scheduling conference to dis- relationship between Hurwitz’ actions in- it may have arising from the failure or con- cuss all unresolved scheduling issues for Oc- volving the insolvency of USAT and the servatorship of United Savings Association tober 24, 1995; and a follow-up conference on Headwaters Forest owned by Pacific Lumber. of Texas, Houston; and November 28, 1995. Pacific Lumber was acquired by Maxxam but Whereas, based on such investigation and III. Settlement Discussions does not appear to have owned any interest evaluation, the Legal Division and the Divi- in USAT or United Financial Group, USAT’s sion of Depositor and Asset Services believe 1. FDIC has had several meetings and dis- first-tier holding company. Moreover, nei- there is a sufficient basis to prosecute such cussions with Hurwitz’ counsel prior to the ther USAT nor UFG ever owned an interest claims; and filing of the lawsuit. Hurwitz has never, how- in Pacific Lumber. Whereas, the Legal Division and the Divi- ever, indicated directly to FDIC a desire to 2. FDIC’s claims alone are not likely to be sion of Depositor and Asset Services have negotiate a settlement of the FDIC’s claims. sufficient to cause Hurwitz to offer the Head- recommended that the Board of Directors 2. As a result of substantial attention to waters Forest, because of their size relative (‘‘Board’’) of the FDIC authorize the filing of Pacific Lumber’s harvesting of the redwoods to a recent Forest Service appraisal of the a lawsuit seeking damages based on such by the environmental community, media in- value of the Headwaters Forest ($600 mil- claims. quiries, Congressional correspondence, and lion); because of very substantial litigation Now, Therefore, Be It Resolved, that the the state of California, Pacific Lumber has risks including statute of limitations, Texas Board hereby approves the filing of a lawsuit issued various press releases stating it would negligence—gross negligence business judg- against former directors and officers Barry consider various means of preserving the red- ment law, and Hurwitz’s role as a de facto di- Munitz, Jenard Gross and Michael Crow and woods. rector; and the indirect connection noted controlling person Charles Hurwitz, arising IV. OTS Investigation above, including the risk of Hurwitz facing out of the failure of United Savings Associa- 1. Since July 1994, the Office of Thrift Su- suit from Pacific Lumber securities holders tion of Texas and authorizes the General pervision has been investigating the failure if its assets were disposed of without Pacific Counsel (or designee), on behalf of the FDIC, of USAT for purposes of initiating an admin- Lumber being compensated by either out- to take all actions necessary or appropriate istrative enforcement action against siders or Hurwitz or entities he controls. to prosecute such lawsuit, including any ad- Hurwitz, five other former directors and offi- ditional litigation necessary to protect or as- cers, and three Hurwitz-controlled holding sure the viability or collectibility of the DOCUMENT N companies. The OTS may allege a violation claims to be prosecuted in such lawsuit. HOPKINS & SUTTER, of the Net Worth Maintenance Agreement DOCUMENT M CHICAGO, WASHINGTON, DALLAS, and unsafe and unsound conduct relating to March 24, 1995. DRAFT the two MBS portfolios and USAT’s real es- MEMORANDUM To: William F. Kroener, III, General Counsel. tate lending practices. If OTS files its ad- To: File. Subj: Meeting with Vice President Gore on ministrative lawsuit, it may allege damages From: F. Thomas Hecht. Friday, Oct. 20, 1995, at 11:00 a.m. that total more than $250 million. 2. OTS has met with Hurwitz’ counsel; no Re: Environmental Developments. DISCUSSION POINTS interest in settlement has been expressed to CC: Jeffrey R. Williams and Robert J. I. Background OTS. DeHenzel. 1. United Savings Association of Texas, 3. OTS is likely to formally file the charges Over the past year the FDIC has been sub- Houston, Texas (‘‘USAT’’), was acquired in within 45 days. ject to an intense lobbying effort by certain

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00111 Fmt 0666 Sfmt 0634 E:\CR\FM\A20DE8.277 pfrm07 PsN: E20PT1 E2450 CONGRESSIONAL RECORD — Extensions of Remarks December 20, 2001 environmental activists led by the Rose On January 20, 1995, DeHenzel and Hecht The case law on constructive trusts raises foundation of Oakland, California. Their met with Julia Levin of the Natural Heritage additional concerns. It is not, as argued by principal concern has been to conserve an Foundation (‘‘NHF’’), a group closely associ- the Rose Foundation, a generalized remedy area of unprotected old-growth redwoods in ated with the Rose Foundation. NHF is con- for any wrongful or deceitful conduct. The northern California known as the Head- ducting much of the lobbying effort on be- remedy typically involves equitable imposi- waters Forest, currently owned by Pacific half of the Rose Foundation and other envi- tion of a trust where one who is entitled to Lumber, a wholly owned subsidiary of ronmental activists on this issue. certain property (or the res of the ‘‘trust’’), is Maxxam, Inc. Because of the potential FDIC In addition to these more formal encoun- deprived of that property by fraud, wrong- and OTS claims against both Maxxam and ters, Williams, DeHenzel and Hecht have doing or false promise. Entitlement to con- Hurwitz, the Rose Foundation and others each been contacted repeatedly by the Rose structive trust is defined, in significant part, have urged that the agencies take steps to Foundation and its attorneys to explore the by statute in California. Thus: ‘‘One who protect the redwoods. They urge either a ne- theories in more depth and to urge the FDIC gains a thing by fraud . . . or other wrongful gotiated ‘‘debt for nature swap’’ in which the to take action. In each of these meetings and conduct . . . is an involuntary trustee of the agencies’ liability claims are traded away for in subsequent telephone conversations and thing gained for the benefit of the person the forest, or litigation to seize the assets of correspondence, the Rose Foundation and its who would otherwise have had it.’’ Calif. Civil Pacific Lumber. More recently, a Qui Tam allies have urged three general approaches to Code § 2224 (emphasis added). The case law was filed in the United States District Court the problem including: (a) the imposition of identifies three preconditions for the imposi- for the Northern District of California by a constructive trust over Pacific Lumber’s tion of the trust: (a) a discrete, identifiable Robert Martel, a free lance journalist and redwoods, (b) the seizure of redwoods using res, (b) an entitlement to the res by the environmental activist, seeking to draw the an unjust enrichment theory, and (c) obtain- plaintiff of which he or she was deprived and government into litigation against Maxxam, ing rights to the forest or, at a minimum, an (c) wrongful conduct by the defendant. See Hurwitz and Pacific Lumber. environmental easement, as part of a nego- GHK Associates v. Myer Group, Inc.., 274 The purpose of this summary is to memori- tiated settlement. The have also urged Con- Cal.Rptr. 168 (Cal. Ct.App. 1991). The FDIC is alize our contacts with these groups and to gressional action, filed a Qui Tam proceeding not an entity ‘‘who would otherwise have discuss the options they have urged upon the in the Northern District of California and had’’ Pacific Lumber or its hardwoods; the FDIC and OTS. threatened the FDIC with proceedings under FDIC has no entitlement to the assets of Pa- A. THE HEADWATERS FOREST AND PACIFIC the Endangered Species Act. cific Lumber of which the FDIC was de- LUMBER 1. The Constructive Trust and Unjust Enrich- prived. This seriously impairs any claim for The Headwaters Forest consists of about ment Theories the imposition of a constructive trust over 44,000 acres of forest ecosystems, including The possibility of acquiring Pacific Lum- those assets. Nor is it clear what the res of approximately 3,000 acres of old growth red- ber’s redwoods by the imposition of a con- such trust should be. To prevail, the Rose woods. These are the last vestiges of the vir- structive trust has been the centerpiece of Foundation must argue that Pacific Lum- gin redwood forest that once extended for 500 the legal work presented to the FDIC by the ber’s forests or the company itself is simply miles across Northern California and into Rose Foundation. The constructive trust a mutated form of USAT’s investment in southern Oregon. The Headwaters Forest is theory proceeds on the following assump- Drexel underwritten projects at the front also a nesting area for certain endangered tions: (a) that Hurwitz and Maxxam con- end of the quid pro quo. But this represents species. It is, by general agreement, an ex- trolled USAT; (b) that Hurwitz, with USAT’s very difficult problem of proof. The FDIC traordinary natural resource. Pacific Lum- funds, entered into an improper quid pro quo would have to establish a strong, if not di- ber owns much of the Headwaters Forest and arrangement with Drexel pursuant to which rect one-to-one, correlation between USAT surrounding areas, including the old growth federally insured funds were used to invest in investments in Drexel underwritten securi- redwoods. For many years, Pacific Lumber Drexel-underwritten junk bonds, (c) in ex- ties, and the reinvestment of equivalent utilized timber harvest techniques which change for USAT’s investments, Drexel pro- sums in Maxxam’s takeover of Pacific Lum- emphasized preservation of much of the old vided Hurwitz with financial assistance in ber by the third parties who issued those se- growth redwood acreage. It appears that the the hostile takeover of Pacific Lumber; and curities. Thus far in our investigations, such company is now committed to harvest the (d) USAT’s investment in the junk bonds correlations have not been established. timber more aggressively. This includes caused significant damages to USAT includ- The Rose Foundation and its attorneys, al- clear-cutting at least part of the unprotected ing it insolvency. The argument is that the ternatively, argue that because Hurwitz and redwoods. There are currently pending sev- acquisition of Pacific Lumber was the fruit Maxxam were ‘‘unjustly enriched’’ quid pro eral lawsuits brought by environmental of certain fraudulent or improper conduct, quo, Pacific Lumber and its holdings should groups and residents of the area seeking to namely, the quid pro quo arrangement, and be seized. Unjust enrichment, however, is a block some of the harvesting. The results that the FDIC, as successor to the failed factual circumstance—not a cause of action. It may, under appropriate circumstances, have been mixed. However, most recently the USAT has standing to impose a constructive justify restitution and the imposition of a United States District Court for the North- trust on Pacific Lumber as a result of the constructive trust, but it is not an inde- ern District of California issued an injunc- losses sustained. tion restraining Pacific Lumber from log- This is a difficult case. First, although pendent basis for granting relief. Lauriedale ging old growth redwoods in the Owl Creek there was obviously a reciprocal course of Associates Ltd. v. Wilson, 7 Cal. App. 4th area—about five miles from the Headwaters conduct between Hurwitz and Drexel, it is 1439, 9 Cal.Rptr. 2d 774 (First Dist. 1992). Un- Forest. After a two week trial the Court held not at all clear that such a course of conduct just enrichment allegations are typically that Pacific Lumber’s logging practices rep- (or even a firm agreement) was improper in made in support of requests for constructive resented a threat to the nesting areas of the any legal sense. USAT’s investment in junk trust, not as an alternative to them. There marbled murrelet. Among other matters, the bonds was authorized by federal regulation is, however, case law which allows case raises the issue of the ability of the En- and approved by USAT’s investment com- disgorgement of profits arising out of a dangered Species Act to reach private hold- mittee. Disclosure could be an issue, but breach of fiduciary duties which describes ings. Apparently, the decision will be ap- Board minutes and examination reports indi- such profits as ‘‘unjust enrichment’’. This pealed. cate that both regulators and Board mem- appears to be the theory upon which the Rose Foundation relies. See Heckmann v. B. FDIC CONTACTS WITH THE ROSE FOUNDATION bers knew of USAT’s investment in Drexel Ahmanson, 168 Cal.App.3d 119, 214 Cal Rptr. ET AL. underwritten bonds and knew of Hurwitz’s takeover activities as well. Board members 177 (1985). But in such litigation the profits As noted above, the Rose Foundation and must be clearly identifiable and closely other environmentalists have repeatedly and regulators may not have known of the full extent of the quid pro quo and this could tracked. As noted above, this would be dif- urged that the FDIC engage in a ‘‘debt for ficult in this case—unless one assumes that nature’’ swap as part of a negotiated settle- be used to develop claims further. This, how- ever, is qualitatively different set of facts the funds used for junk bond purposes trans- ment or undertake a course of litigation lated dollar for dollar through various third which would result in the seizure of Pacific than those alleged by the Rose Foundation. Most importantly, the junk bond portfolio parties at Drexel’s behest and then to Lumber’s assets, namely the redwoods. Rep- Maxxam for its acquisition of Pacific Lum- resentatives of the FDIC and Hopkins & Sut- was not the cause of USAT’s insolvency. Sig- nificant other problems dominated the Asso- ber. No one who has looked at these relation- ter have met with representatives of the en- ships closely is willing to take that position. vironmental groups to hear their presen- ciation including staggering losses from its tations and to evaluate their claims. Thus: mortgaged backed securities and related in- 2. The Redwoods As Subject of Negotiations On June 17, 1994, Thomas Hecht met with vestments, unamortized ‘‘good will’’ and the As their theories have become subject to Jill Ratner of the Rose Foundation in San deeply troubled real estate portfolio. What criticisms, certain of the counsel for the Francisco for an initial meeting at which the quid pro quo provides, however, is the Rose Foundation have shifted (at least in Ms. Ratner outlined her groups’ concerns. context for other USAT misconduct. For ex- part) from arguments compelling the seizure On October 4, 1994, Hecht, Jeffrey Williams, ample, it helps explain the lengths to which of the redwoods to urging the development of Robert DeHenzel and the Rose Foundation the officers of USAT manipulated the fi- an aggressive and high profile damages case and its lawyers participated in a teleconfer- nances of the institution in order to keep the in which the redwoods become a bargaining ence at which the claims prepared by the doors of the institution open so that Hurwitz chip in negotiating a resolution. This indeed, Rose Foundation were presented in more de- could continue to avail himself of Drexel may be the best option available to the envi- tail. contacts and resources. ronmental groups; its greatest strength is

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00112 Fmt 0666 Sfmt 0634 E:\CR\FM\A20DE8.280 pfrm07 PsN: E20PT1 December 20, 2001 CONGRESSIONAL RECORD — Extensions of Remarks E2451 that it does not depend on difficult seizure the False Claims Act. The essence of the ac- a violation of the Act. The cases cited by De theories. This approach would require that tion closely tracks the theories presented in- Stefano in support of his position involve in- both the FDIC and OTS undertake to make formally to the FDIC by the Rose Founda- stances where the link between environ- the redwoods part of any settlement pack- tion and its allies. Martel argues that the de- mental action and agency action is much age. It is a strategy which would attract con- ception and/or dishonesty inherent in the more direct See, for example, Pyramid Lake siderable attention if successful. It is, how- quid pro quo program ultimately amounted Paiute Tribe v. U.S. Dept. of the Navy, 898 ever, not without serious problems. For ex- to a fraudulent depletion of the insurance F.2d 1410 (9th Cir. 1990) (challenge to Navy’s ample, Maxxam is a publicly held corpora- fund and, therefore, fits within the reach of agricultural leasing program which require tion and Pacific Lumber is the only one of the False Claims Act. He seeks not only re- irrigation as an improper diversion of waters its holdings which is profitable. Minority covery for the fraud but the imposition of a containing endangered species). shareholders may be reluctant to allow a constructive trust over Pacific Lumber and/ It is unlikely that an ESA challenge to an substantial portion of the most profitable or the redwoods and to restrain FDIC settle- FDIC failure to sue will succeed. First, al- asset of the company to be traded away to ments unless environmental concerns are though failures to act can be reviewable satisfy debt—particularly debt associated taken into account. There are two serious agency action, cases successfully arguing with Charles Hurwitz and the operation of problems with the action. First, it fits very that position typically involve failure of an Agency to abide by clear regulation or law. USAT. Moreover, Pacific Lumber and poorly within the framework of the False The Supreme Court has repeatedly held that Maxxam have only limited ability to trans- Claims Act which is designed to accommo- decisions to sue are discretionary and out- fer funds or assets among one another. date claims against persons or entities who Maxxam could settle the case and be pre- side the realm of judicial review. Thus: submit fraudulent requests for payment. 31 ‘‘This Court has recognized on several oc- cluded from offering up the forests without U.S.C. § 3729 There is no direct, fraudulently casions over many years that an agency’s de- the consent of Pacific Lumber’s lenders. Pa- induced payment here. Whether more indi- cision not to prosecute or enforce, whether cific Lumber’s and Maxxam’s quarterly and rect items qualify remains to be seen. Sec- through civil or criminal process, is a deci- annual reports indicate that lenders have re- ond, such claims can only be based on public sion generally committed to an agency’s ab- quired that the companies to enter into cer- knowledge if the relator is the original solute discretion. [citations omitted]. This tain agreements restricting inter-company source. See U.S. et rel. Gold v. Morrison- recognition of the existence of discretion is transfers. Any violation of these agreements Knudsen Company, Inc., F.Supp. . 1994 WL attributable in no small part to the general would create significant additional legal 673690 (N.D. N.Y.) Here, the claims involve unsuitability for judicial review of agency problems for both Maxxam and Pacific Lum- exclusively public information and Martel decisions to refuse enforcement. ber. will have difficulty establishing himself as ‘‘The reasons for this general unsuitability This is not to argue that such an approach an original source. are many. First, an agency decision not to shouldn’t be seriously explored. It is to sug- Pursuant to the False Claims Act qui tam enforce often involves a complicated bal- gest, however, that the negotiations will be provisions, the government has 60 days with- ancing of a number of factors which are pe- difficult and involves a broad array of par- in which to advise the court whether it wish- culiarly within its expertise. Thus, the agen- ticipants. It would be a complex transaction es to intervene and take responsibility for cy must not only assess whether a violation involving lenders, government agencies, the the case or leave the case to the relators. 31 has occurred, but whether agency resources targeted principals and, potentially, U.S.C. § 3730(b)(2). During this time, the case are best spent on this violation or another, Maxxam’s minority shareholders. will be kept under seal and held in camera. whether the agency is likely to succeed if it 3. The Status of Congressional Action The defendants have not been served or ad- acts, whether the particular enforcement ac- As the ‘‘debt for nature’’ issue attained a vised of its existence. The United States At- tion requested best fits the agency’s overall certain degree of public exposure, Califor- torney has taken the position, in consulta- policies, and, indeed, whether the agency has nia’s Congressional delegation became active tion with the FDIC, that more time is needed enough resources to undertake the action at in developing legislation which would facili- before the government can intelligently as- all. . . . The agency is far better equipped tate such transactions. In August, 1993 Cali- sess its options in the qui tam setting. Ac- than the courts to deal with the many vari- fornia Congressman Dan Hamburg intro- cordingly, papers have been submitted to the ables involved in the proper ordering of its duced H.R. 2866 which was to have empow- Court seeking an extension of an additional priorities. . . . [ A]n agency’s refusal to in- ered the government to obtain the old 90 days. The relator does not object to the stitute proceedings shares to some extent growth redwoods by ‘‘donation, purchase or extension. the characteristics of the decision of a pros- exchange’’ but not condemnation. The Head- There are several options available to the ecutor . . . not to indict—a decision which water Forest would become a designated wil- government, including: has long been regarded as the special prov- derness area protected from clear cut har- (a) Intervene and stay the case pending ne- ince of the [decision-market].’’ Heckler v. vesting. The bill authorized appropriations gotiations and/or OTS administrative pro- Chaney, 470 U.S. 821, 831–832 (1985). to affect the acquisition. Senator Barbara ceedings. Moreover, the standard of review in such Boxer introduced virtually identical legisla- (b) Intervene and move to dismiss the case, circumstances is whether agency action is ‘‘arbitrary and capricious’’. Motor Vehicle tion in the Senate. The House bill survived given its failure to meet the requirements of Manufacturers Association v. State Farm hearings before the Agriculture Committee the False Claims Act. Mutual Insurance Co., 463 U.S. 29 (1983). and the Natural Resources Committee with- (c) Intervene and amend the Complaint to Given the careful deliberation by the FDIC out major alteration and was sent to the plead a more coherent case. as to whether to initiate litigation in Cali- floor. In September 1994 it passed the House (d) Leave the case to the relators. fornia, Texas or elsewhere and given the by a significant margin and was sent to the Whichever option is followed will be a problems associated with any such litiga- Senate. Initially, Pacific Lumber vigorously function of discussions between the FDIC tion, the decision not to proceed is simply opposed the legislation. In mid-autumn, 1994, and the Department of Justice. These discus- not arbitrary and capricious. Environmental the Company changed its position and an- sions are currently underway at the urging groups may disagree with the decision (if, in- nounced it would support the legislation in of Williams and DeHenzel. The Office of Thrift Supervision presently seeks little or deed, the FDIC determines not to act) but a light of House amendments which clarified successful challenge will require much more. the voluntary nature of any such transfer. no contact with the qui tam action. OTS No hearings were held in the Senate on the will, however, be kept apprised of the pro- House bill or on Boxer’s parallel legislation; ceedings as it develops its administrative DOCUMENT X no vote was taken in the Senate. proceedings. Attorney Client Privilege Attorney Work In the aftermath of the November, 1994 5. The Endangered Species Act (‘‘ESA’’) Product elections, the prospects for this legislation In a November 18, 1994 letter, Richard De Memorandum To: Board of Directors, Fed- passing either chamber are now very modest. Stefano, on behalf of the Rose Foundation, eral Deposit Insurance Corporation. Congressman Hamburg is no longer present raised for the first time the possibility that From: Jack D. Smith, Deputy General Coun- to push the issue. His replacement, Congress- the Endangered Species Act may be used to sel. man Riggs has not shown any interest in the challenge the FDIC’s failure to initiate liti- Date: July 24, 1995. legislation. The new Chairman of the House gation against Maxxam and Hurwitz. De Subject: Status of PLS Investigation; Insti- Natural Resources Committee, Don Young, Stefano argues that since ESA mandates tution: United States Association of apparently takes a dim view of the legisla- that ‘‘. . . all Federal agencies shall seek to Texas, Houston #1815. tion. Senator Boxer has not re-introduced conserve endangered species . . . and shall This memorandum reports on the status of her bill in the 104th congress. It appears that utilize their authorities in furtherance of the the continuing investigation of the failure of if there is to be such legislation, it will fol- purposes [the Act], 16 U.S.C. § 1531(c)(1), the United Savings Association of Texas low—not precede—a negotiated resolution FDIC must take into account the environ- (‘‘USAT’’), the separate investigation being involving the redwoods. mental impact on endangered species associ- conducted by the Office of Thrift Supervision 4. The Qui Tam Action ated with Pacific Lumber’s logging of the (‘‘OTS’’), current tolling agreements, settle- On January 26, 1995, Robert Martel, as rela- redwoods in the agencies decision to sue or ment negotiations with United Financial tor, filed an action in the United States Dis- not to sue. De Stefano argues, that the deci- Group, Inc., (‘‘UFG’’) USAT’s first tier hold- trict Court for the Northern District of Cali- sion not to pursue recoveries of the redwoods ing company, and our decision not to rec- fornia pursuant to the qui tam provisions of when there is a legal basis to do so may be ommend an independent cause of action by

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00113 Fmt 0666 Sfmt 0634 E:\CR\FM\A20DE8.283 pfrm07 PsN: E20PT1 E2452 CONGRESSIONAL RECORD — Extensions of Remarks December 20, 2001 the FDIC against the former officers and di- standard of gross negligence that will be claim on the merits, but we see no viable rectors of USAT and controlling person very difficult to meet. In Transportation In- basis under existing law for avoiding a stat- Charles Hurwitz. surance Company v. Moriel, 1994 WL 246568 ute of limitation. Thus, we recommend I. Background (Tex.), the Texas Supreme Court defined against asserting this claim. As you know, USAT was placed into re- gross negligence as constituting two ele- ASSESSMENT OF DEFENSES: We expect business judgment rule defenses and serious ceivership on December 30, 1988 with assets ments: (1) viewed objectively from the stand- statute of limitations issues based on recent of $4.6 billion. The estimated loss to the in- point of the actor, the act or omission must Fifth Circuit and other Texas case law. Ab- surance fund is $1.6 billion. After a prelimi- involve an extreme degree of risk, consid- sent a change in the law, there is at least a nary investigation into the massive losses at ering the probability and magnitude of the 70% chance that much or all of the MBS USAT, the FDIC negotiated tolling agree- potential harm to others, and (2) the actor claims will be dismissed based on the statue ments with UFG, controlling person Charles must have actual, subjective awareness of of limitations. The claim for failing to insist Hurwitz and nine other former directors and the risk involved, but nevertheless proceed that the net worth maintenance agreements officers of USAT/UFG that were earlier sen- in conscious indifference to the rights, safe- be honored is more likely to minimize stat- ior officers or directors that were perceived ty, or welfare of others. This new standard will make it very difficult, if not impossible ute of limitation motions but raised a . . . . as having significant responsibility over the SUIT PROFILE: The suit will attract real estate and investment functions at the to prove our claims. The cumulative effect of these recent ad- media and Congressional attention because institution. of Hurwitz’s reputation in corporate take- In May 1994, after a series of meetings with verse decisions is that there is a very high probability that the FDIC’s claims will not overs, and his ownership of Pacific Lumber, the potential defendants and the exchange of which is harvesting redwoods. Environ- considerable documents and other informa- survive a motion to dismiss either on statute of limitations grounds or the standard of mental interests have received considerable tion, we presented a draft authority to sue publicity often suggesting exchanging these memorandum recommending that we pursue care. Because there is significantly less than a 50% chance that we can avoid dismissal, it claims for trees. The Department of Interior claims against Hurwitz and certain of the recently informed us that the Administra- former officers and directors for losses in ex- is our decision not to recommend suit on the FDIC’s proposed claims. tion is seriously interested in pursuing such cess of $200 million. The proposed claims in- a settlement. volved significant litigation risk, in that the III. Debt for Nature Swap TIMING AND COST-BENEFIT ANALYSIS: bulk of the loss causing events occurred Our decision not to sue Hurwitz and the We intend to use Hopkins & Sutter (Chicago/ more that two years prior to the date of re- former directors and officers of USAT is Dallas) and the minority firm Adorno & ceivership, and were therefore subject to dis- likely to attract media coverage and consid- Zeder (Miami). The estimated cost of litiga- missal on statute of limitations grounds. In erable criticism from environmental groups tion by outside counsel is $4 million up to light of the Fifth Circuit’s opinion in Daw- and Congress. Hurwitz has a reputation as a trail, and an additional $2 million through son, a split of authority in the federal trial corporate raider, and his hostile takeover of trail. We have incurred outside counsel fees courts in Texas on the level of culpability re- Pacific Lumber has attracted enormous pub- and expenses of $4. quired to toll limitations and the Supreme licity and litigation because of his har- Attorney Client Privilege Attorney Work Court’s refusal to consider whether a federal vesting of California redwoods. Environ- Product rule should be adopted under which neg- mental interests have received considerable Memorandum To: Board of Directors, Fed- ligence by a majority of the directors would publicity in the last two years, suggesting eral Deposit Insurance Corporation. toll the statute of limitations, our strategy exchanging our claims for trees. We recently From: Jack D. Smith, Deputy General Coun- was to assert that gross negligence was suffi- met with the Department of the Interior, sel. cient to the toll the statute of limitations. who informed us that they are negotiating Stephen N. Graham, Associate Director (Op- After briefings with FDIC deputies and fur- with Hurwitz about the possibility of a debt erations). ther discussion with the potential defend- for nature swap and that the Administration Date: July 24, 1995. ants, we decided to defer formal FDIC ap- is seriously interested in pursuing such a Subject: Status of PLS Investigation, Insti- proval of our claims and continue the tolling settlement. We plan to pursue these settle- tution: United Savings Association of agreements. ment discussions with the OTS in the com- At about the same time that we deferred Houston, Texas #1815. ing weeks. This memorandum reports on the status of formal approval of the FDIC cause of action, IV. Updated Authority to Sue Memorandum the continuing investigation of the failure of we developed a new strategy for pursuing We have attached an updated authority to United Savings Association of Texas these claims through administrative enforce- sue memorandum for your review and con- (‘‘USAT’’), the separate investigation being ment proceedings with the OTS. After sev- sideration. It sets forth the theories and conducted by the Office of Thrift Supervision eral meetings with senior staff of the OTS weaknesses of our proposed claims in great (‘‘OTS’’) current tolling agreements, settle- Office of Enforcement, we entered into a for- detail. It should be considered for Board ap- ment negotiations with United Financial mal agreement with the OTS, who began an proval only if the Board decides, as a matter Group, Inc., (‘‘UFG’’) USAT’s first tier hold- independent investigation into the activities of public policy, that it wants the Texas ing company, and our decision not to rec- of various directors and officers of USAT, courts to decide the statute of limitations ommend suit by the FDIC against the former Charles Hurwitz, UFG, as well as USAT’s and standard of care issues rather than FDIC officers and directors of USAT and control- second tier holding company, Maxxam, Inc, a staff. The litigation risks are substantial and ling person Charles Hurwitz and other USAT publically traded company that is the probability of success is very low, but if officers and investors. We had agreed to significally controlled by Hurwitz. the Board were to decide that it wants to go delay a final decision on this matter until II. Significant Caselaw Developments Have Fur- forward with the filing of a complaint, we after OTS decides whether to pursue claims ther Weakened the Viability of an Inde- need to be prepared to file the complaint in against Hurwitz. However we were advised pendent Cause of Action by the FDIC the Southern District of Texas, on or before, on July 21, 1995 that Hurwitz would not ex- Although we have continued to investigate Wednesday, August 2, 1995. tend our tolling agreement with him. Con- and refine our potential claims during the We will be available to discuss this matter sequently, if suit were to be brought it would pendency of the OTS investigation, two sig- on very short notice. have to be filed by August 2, 1995. We are nificant court decisions and the failure of 1. USAT officers and directors were grossly taking that unusual step of advising the Congress to address the statute of limita- negligent in causing USAT to invest approxi- board of our conclusion that suit should not tions problems has further weakened the mately $180 million in its subsidiary, United be brought. FDIC’s prospects for successfully litigating MBS, leveraging the investment into $1.8 bil- As you know, USAT was placed into re- our claims in United States District Court lion of mortgage backed securities (‘‘MBS’’) ceivership on December 30, 1998 with assets for the Southern District of Texas. and losing approximately $97 million (includ- of $4.6 billion. The estimated loss to the in- In the recent decision of RTC v. Acton, the ing interest) when USAT had already suf- surance fund is $1.6 billion. After a prelimi- Fifth Circuit held that under Texas law, only fered disastrous results in its first MBS port- nary investigation into the massive losses at self-dealing or fraudulent conduct, and not folio and was in a critically weakened finan- USAT, the FDIC negotiated tolling agree- gross negligence, is sufficient to toll the cial state. Approximately $80 million of the ments with UFG, controlling person Charles statute of limitations under the doctrine of $180 million was advanced within two years Hurwitz and nine other former directors and adverse domination. As a result of this opin- of the failure. officers of USAT/UFG that were either senior ion, we can no longer rely on any argument 2. USAT officers and directors were grossly officers or directors that we perceived as that gross negligence by a majority of the negligent in failing to act to prevent $50 mil- having significant responsibility over the culpable Board is sufficient to toll the stat- lion of additional losses from USAT’s first real estate and investment functions at the ute of limitations. Moreover, there is very MBS portfolio. The positions were in place institution. little, if any, evidence of fraud or self-deal- more than two years before failure. Our anal- In May 1994, after a series of meetings with ing that is likely to survive a motion to dis- ysis is that they should have begun to cut the potential defendants and the exchange of miss on statute of limitations grounds. their losses, wind down this set of positions, considerable documents and other informa- Even if we could overcome the statute of starting two years before failing fiduciary tion, we prepared a draft authority to sue limitations problems, a recent decision by duty and aiding and abetting breaches of fi- memorandum recommending that we pursue the Texas Supreme Court announced a new duciary duty. We believe that it is a good claims against Hurwitz and certain of the

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00114 Fmt 0666 Sfmt 0634 E:\CR\FM\A20DE8.285 pfrm07 PsN: E20PT1 December 20, 2001 CONGRESSIONAL RECORD — Extensions of Remarks E2453 former officers and directors for losses in ex- the statute of limitations. There is very lit- soon as that should have been done. The cess of $200 million. The proposed claims in- tle, if any, evidence of fraud or self-dealing statute of limitations risks in this argument volved significant litigation risk. Most nota- that is likely to survive a motion to dismiss are (1) all of the money was originally in- bly, the bulk of the loss causing events oc- on statute of limitations grounds. vested more than two years before failure curred more that two years prior to the date A recent decision by the Texas Supreme and (2) if there is a claim based on USAT of receivership, and were therefore at risk of Court announced a new standard of gross being late in unwinding these transactions dismissal on statute of limitations grounds. negligence that will be very difficult to meet (we think it should have been done by Janu- In light of the Fifth Circuit’s opinion in if it is applied to D&O cases. In Transpor- ary 1, 1987), there is a real likelihood that Dawson, a split of authority in the federal tation Insurance Company v. Moriel, 1994 WL they should have unwound them more than trial courts in Texas on the level of (basi- 246568 (Tex.), the Texas Supreme Court de- two years before failure. cally because we are likely to loose on stat- fined gross negligence as constituting two B. The Merits ute of limitations grounds) because this mat- elements: (1) viewed objectively from the ter has been—and is likely to continue to standpoint of the actor, the act or omission The law has also moved against us on the be—highly visible. Culpability required to must involve an extreme degree of risk, con- merits of the claims. The claims against toll limitations and the Supreme Court’s re- sidering the probability and magnitude of Hurwitz are more difficult than usual be- fusal to consider whether a federal rule the potential harm to others, and (2) the cause he was not an officer or director of should be adopted under which negligence by actor must have actual, subjective awareness USAT. We believe that his involvement rose a majority of the directors would toll the of the risk involved, but nevertheless pro- to the level of a defacto director, but that is statute of limitations, our strategy at that ceed in conscious indifference to the rights, a notable hurdle. time was to assert that gross negligence was safety, or welfare of others. The case in- Texas case law has essentially eliminated sufficient to the toll the statutes of limita- volved punitive damage issues, but the lan- liability for negligence in the name of apply- tions. After briefings with the deputies to guage in the opinion is sweeping. This new ing a very expensive business judgment rule the Directors and further discussion with the standard if applied would make it very dif- defense. potential defendants, we decided to defer ficult, if not impossible to prove our claims. We believe the conduct here constitutes FDIC decision on whether to assert our The effect of these recent adverse decisions gross negligence as that is normally defined. claims and we continued the tolling agree- is that there is a very high probability that The law in Texas is currently unsettled, but ments. the FDIC’s claims will not survive a motion ***** II. OTS’s Involvement to dismiss on statute of limitations grounds. We would also be at an increased risk of dis- At about the same time that we deferred a missal on the merits. Because there is sig- decision on the FDIC’s cause of action, we Attorney Client Privilege Attorney Work nificantly less than a 50% chance that we met with OTS staff to discuss the possibili- Product can avoid dismissal on statute of limitation ties of OTS pursing these claims, plus a net grounds and because victory the * * * we do Memorandum To: Board of Directors, Fed- worth maintenance agreement claim, not recommend suit on the FDIC’s potential eral Deposit Insurance Corporation. through administrative enforcement pro- proposed claims. From: Jack D. Smith, Deputy General Coun- ceedings. After several meetings with senior sel. Stephen N. Graham, Associate Direc- staff of the OTS Office of Enforcement, we III. The Pacific Lumber—redwood forest matter tor (Operations). entered into a formal agreement with the Our decision not to sue Hurwitz and the Date: July 24, 1995. OTS, who began an independent investiga- former directors and officers of USAT is Subject: Status of PLS Investigation, Insti- tion into the activities of various directors likely to attract media coverage and criti- tution: United Savings Association of and officers of USAT, Charles Hurwitz, UFG, cism from environmental groups and mem- Texas—Houston, Texas #1815. as well as USAT’s second tier holding com- bers of Congress. Hurwitz has a reputation as This memorandum reports on the status of pany, Maxxam, Inc, a publically traded com- a corporate raider, and his hostile takeover the continuing investigation of the failure of pany that is largely controlled by Hurwitz. of Pacific Lumber attracted enormous pub- United Savings Association of Texas The FDIC is paying OTS’s costs in connec- licity and litigation because of his har- (‘‘USAT’’), the separate investigation of tion with this matter. vesting of California redwoods. Environ- USAT being conducted by the Office of The OTS has reviewed extensive docu- mental interests have received considerable Thrift Supervision (‘‘OTS’’), current tolling mentation and has recently conducted a se- publicity in the last two years, suggesting agreements, settlement negotiations with ries of administrative depositions. We have exchanging our D&O claims for the redwood United Financial Group, Inc., (‘‘UFG’’) been informed that OTS staff is currently forest. On July * * * we met with representa- USAT’s first tier holding company, and our preparing a broad base draft Notice of tives of the Department of the Interior, who decision not to recommend suit by the FDIC Charges against Hurwitz and others, includ- informed us that they are negotiating with against controlling person Charles Hurwitz ing Maxxam, for substantial restitution or Hurwitz about the possibility of swaping var- and other USAT officers and directors. unsafe and unsound practices and for en- ious * * * that the Administration is seri- We had hoped to delay a final decision on forcement of a net worth maintenance agree- ously interested in pursuing such a settle- this matter until after OTS decides whether ment. OTS staff plans to seek formal ap- ment. We plan to follow up on these settle- to pursue claims against Hurwitz, et al. How- proval for this case in the relatively near fu- ment discussions with the OTS and Interior ever, we were advised on July 21, 1995 that ture. Under the terms of our agreement with in the coming weeks. Hurwitz would not extend our tolling agree- OTS, FDIC will be the beneficiary of any re- V. Updated (Draft) Authority to Sue Memo- ment with him. Consequently, if suit were to covery from the OTS enforcement action randum be brought it would have to be filed by Au- through settlement or litigation against the In light of the complexity of visibility of gust 2, 1995. We are taking the unusual step proposed respondent. All of the potential re- this matter, and the short time frames, we of advising the Board of our conclusion that spondents to the OTS investigation have have attached for your information an up- suit should not be brought basically because signed tolling agreements with OTC which dated, draft, authority to sue memorandum. the FDIC is highly likely to lose on statute expire on December 31, 1995. It sets forth the theories (and weaknesses) of of limitations grounds because this matter III. Significant Caselaw Developments Have our proposed claims in some detail. Whether has been—and is likely to continue to be— Further Weakened the Viability of Suit by that memorandum sets out a viable claim on highly visible. We do not recommend suit. the FDIC the merits should be considered by the Board I. Background if the Board decides that it wants the Texas Although we have continued to investigate As you know, USAT was placed into re- District court to decide the statute of limi- and refine our potential claims during the ceivership on December 30, 1988 with assets tations issue rather than FDIC staff. If the pendency of the OTS investigation, two sig- of $4.6 billion. The estimated loss to the in- Board were to decide to go forward with the nificant court decisions, and the failure of surance fund is $1.6 billion. After a prelimi- filing of a complaint, we need to file the Congress to address the statute of limita- nary investigation into the massive losses at complaint in the Southern District of Texas, tions problems, has further weakened the USAT, the FDIC negotiated tolling agree- on or before, Wednesday, August 2, 1995. FDIC’s prospect for successfully litigating ments with UFG, controlling person Charles our claims in the United States District We are available to discuss this matter at your convience. Hurwitz and ten other former directors and Court for the Southern District of Texas. officers of USAT/UFG that were either senior A. Statute of Limitations officers or directors that were perceived as In the recent decision of RTC v. Acton, the A. Statute of Limitations having significant responsibility over the Fifth Circuit held that under Texas law, only All of the affirmative acts that would form real estate and investment functions at the self-dealing or fraudulent conduct, and not the basis for an FDIC unit occurred more institution. gross negligence, is sufficient to toll the two than two years before USAT failed. Thus, the In May 1994, after a series of meetings with year statute of limitations under the doc- only claims that have any chance of moving the potential defendants and the exchange of trine of adverse domination. As a result of a motion to discuss based on statute of limi- considerable documents and other informa- this opinion, we cannot rely on an argument tations are ones based on USAT’s failure to tion, we prepared a draft authority to sue that gross negligence by a majority of the unwind some positions in mortgage backed memorandum recommending that we pursue culpable Board members is sufficient to toll securities and derivative instruments as claims against Hurwitz and certain USAT

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00115 Fmt 0666 Sfmt 0634 E:\CR\FM\A20DE8.287 pfrm07 PsN: E20PT1 E2454 CONGRESSIONAL RECORD — Extensions of Remarks December 20, 2001 former officers and directors for losses in ex- than two years before USAT failed. Thus, the Hurwitz about the possibility of swapping cess of $200 million. The proposed claims in- only claims that have any chance of sur- various properties, plus possibly the FDIC/ volved significant litigation risk. Most nota- viving a motion to dismiss based on statute OTS claim, for the redwood forest. They bly, the loss causing events occurred more of limitations grounds are claims based on stated that the Administration is seriously than two years prior to the date of receiver- USAT’s failure to unwind some positions in interested in pursuing such a settlement. We ship, and were therefore at risk of dismissal mortgage backed securities and derivative plan to follow up on these discussions with on statute of limitations grounds. In light of instruments as soon as that should have been the OTS and the Department of Interior in the Fifth Circuit’s opinion in Dawson, a split done. The statute of limitations risks in this the coming weeks. of authority in the federal trials courts in argument are (1) all of the money was put at V. Updated (Draft) Authority to Sue Memo- Texas on the level of culpability required to risk more than two years before failure, and randum toll limitations and the Supreme Court’s re- (2) if there is a claim based on USAT being In light of the complexity and visibility of fusal to consider whether a federal rule late in unwinding these transactions (we this matter, and the short timeframes, we should be adopted under which negligence by think it should have been done starting no have attached for your information an up- a majority of the directors would toll the late than January 1, 1987), there is a real dated (draft) authority to sue memorandum. statute of limitations, our strategy at that likelihood * * * that they should have It sets forth the theories (and weaknesses) of time was to assert that gross negligence was unwound them more than two years before our proposed claims in some detail. Whether sufficient to toll the statute of limitations. failure. that memorandum sets out a viable claim on After briefings with the Deputies to the Di- In short, we have an argument for pre- the merits should be considered by the Board rectors and further discussion with the po- senting some claims, but that argument is if the Board decides that it wants the Texas tential defendants, we decided to defer an not likely to prevail. district court to decide the statute of limita- FDIC decision on whether to assert our B. The Merits tions issue rather than FDIC staff. If the claims, and we continued the tolling agree- The law has also moved against us on the Board were to decide to go forward with the ments. merits of the claims. The claims against filing of a complaint, we need to file the II. OTS’s Involvement Hurwitz are more difficult than usual be- complaint in the Southern District of Texas, At about the same time that we deferred a cause he was not an officer or director of on or before, Wednesday, August 2, 1995. decision on the FDIC’s cause of action, we USAT. We believe that his involvement rose We are available to discuss this matter at met with OTS staff to discuss the possibility to the level of a de facto director, but his your convenience. of OTS pursuing these claims (plus a net status presents a notable hurdle. worth maintenance agreement claim) Texas case law has essentially eliminated Attorney Client Privilege Attorney Work through administrative enforcement pro- liability for negligence in the name of apply- Product ceedings. After several meetings with senior ing a very expansive business judgment rule Memorandum To: Board of Directors, Fed- staff of the OTS Office of Enforcement, we defense. We believe the conduct here con- eral Deposit Insurance Corporation. entered into a formal agreement with the stitutes gross negligence as that term is nor- From: Jack D. Smith, Deputy General Coun- OTS, who began an independent investiga- mally defined. The law of gross negligence in sel. Stephen N. Graham, Associate Direc- tion into the activities of various directors Texas is currently unsettled, but a recent de- tor (Operations). and officers of USAT, Charles Hurwitz, UFG, cision by the Texas Supreme Court an- as well as USAT’s second tier holding com- Date: July 27, 1995. nounced a new standard of gross negligence In addition to presenting the attached au- pany, Maxxam, Inc., a publicly traded com- that will be very difficult to meet if it is ap- thority our memorandum for Board action, pany that is largely controlled by Hurwitz. plied to D&O cases. In Transportation Insur- this memorandum reports on the status of The FDIC is paying OTS’s costs in connec- ance Company v. Moriel, 879 S.W. 2d 10 (Tex. the continuing investigation of the failure of tion with this matter. 1994), the Texas Supreme Court defined gross The OTS has reviewed extensive docu- United Savings Association of Texas negligence as constituting two elements: (1) (‘‘USAT’’), the separate investigation of mentation and has recently conducted a se- viewed objectively from the standpoint of ries of administrative depositions. We have USAT being conducted by the Office of the actor, the act or omission must involve Thrift Supervision (‘‘OTS’’), current tolling been informed that OTS staff is currently an extreme degree of risk, considering the preparing a broad-based draft Notice of agreements, and settlement negotiations probability and magnitude of the potential with United Financial Group, Inc. (‘‘UFG’’), Charges against Hurwitz and others, includ- harm to others, and (2) the actor must have USAT’s first tier holding company. ing Maxxam, for substantial restitution for actual, subjective awareness of the risk in- We were advised on July 21, 1995 that unsafe and unsound practices and for en- volved, but nevertheless proceed in conscious Hurwitz would not extend our tolling agree- forcement of a net worth maintenance agree- indifference to the rights, safety, or welfare ment with him. Consequently, if suit is to be ment. OTS staff plans to seek formal ap- of others. This new standard, if applied, brought it would have to be filed by August proval for this case in the relatively near fu- would make it very difficult, if not impos- 2, 1995. Hurwitz actions have precluded that ture. Under the terms of our agreement with sible to prove our claims (3) further, through possibility. Thus the Board must now decide OTS, FDIC will be the beneficiary of any re- legislation Texas has attempted to compare, whether to authorize suit. While we would covery from the OTS enforcement action in essence, ‘authorizations in FDIC claims.’ only sue Hurwitz at this time, rather than through settlement or litigation against the The effect of these recent adverse decisions dividing the memo and possibly, having to proposed respondents. All the potential re- is that there is a very high probability that bring it back to deal with other individuals, spondents of the OTS investigation have the FDIC’s claims will not survive a motion the attached ATS seeks authorization to sue signed tolling agreements with OTS which to dismiss on statute of limitations ground. all of the individuals against whom we would expire on December 31, 1995. We would also be at increased risk of dis- expect to assert claims. In our view Hurwitz III. Significant Caselaw Developments Have missal on the merits. Because there is sig- and the other proposal defendants were Further Weakened the Viability of Suit by nificantly less than a 50% chance that we grossly negligent. There is a 70% probability the FDIC can avoid dismissal on statute of limitations that most or all the conventional claims Although we have continued to investigate grounds, and because even if we survived a that could be made in the FDIC’s case would and refine our potential claims during the statute of limitations motion, victory on the be dismissed on statute of limitations pendency of the OTS investigation, two sig- merits (especially on the claims most likely grounds. An additional claim against nificant court decisions, and the failure of to survive a statute of limitations motion) is Hurwitz has a better probability on the stat- Congress to address the statute of limita- uncertain given the state of the law in ute of limitations issue, but there are nu- tions problems, have further weakened the Texas, we do not recommend suit on the merous obstacles to successful prosection of FDIC’s prospects for successfully litigating FDIC’s potential claim. 4 that claim. Under these circumstances the our claims in the United States District IV. The Pacific Lumber—Redwood Forest Mat- Board must decide whether to authorize a Court for the Southern District of Texas. ter case with these high litigations risks. A. Statute of Limitations Our decision not to sue Hurwitz and the The attached authority to sue, memo- In the recent decision of RTC v. Acton, 49 former directors and officers of USAT is randum is summarized at the end of this F.3d 1086 (5th Cir. 1995), the Fifth Circuit likely to attract media coverage and criti- cover memorandum. held that under Texas law, only self-dealing cism from environmental groups and mem- Background or fraudulent conduct, and not gross neg- bers of Congress. Hurwitz has a reputation as As you know, USAT was placed into re- ligence, is sufficient to toll the two year a corporate raider, and his hostile takeover ceivership on December 30, 1988. After a pre- statute of limitations under the doctrine of of Pacific Lumber attracted enormous pub- liminary investigation into the massive adverse domination. As a result of this opin- licity and litigation because of his har- losses at USAT, the FDIC negotiated tolling ion, we cannot rely on an argument that vesting of California redwoods. Environ- agreements with UFG, controlling person gross negligence by a majority of the cul- mental interests have received considerable Charles Hurwitz and ten other former direc- pable Board members is sufficient to toll the publicity in the last two years, suggesting tors and officers of USAT/UFG who were ei- statute of limitations. There is very little, if exchanging our D&O claims for the redwood ther senior officers or directors that were any, evidence of fraud or self-dealing. forest. On July 21, we met with representa- perceived as having significant responsi- All of the affirmative acts that would form tives of the Department of the Interior, who bility over the real estate and investment the basis for an FDIC suit occurred more informed us that they are negotiating with functions at the institution.

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00116 Fmt 0666 Sfmt 0634 E:\CR\FM\A20DE8.290 pfrm07 PsN: E20PT1 December 20, 2001 CONGRESSIONAL RECORD — Extensions of Remarks E2455 In May 1994, after a series of meetings with held that under Texas law, only self-dealing Date: July 24, 1995. the potential defendants and the exchange of or fraudulent conduct, and not gross neg- Subject: Status of PLS Investigation, Insti- considerable documents and other informa- ligence, is sufficient to toll the two year tution: United Savings Association of tion, we prepared a draft authority to sue statute of limitations under the doctrine of Texas—Houston, Texas #1815. memorandum recommending that we pursue adverse domination. As a result of this opin- This memorandum reports on the status of claims against Hurwitz and certain USAT ion, we cannot rely on an argument that the continuing investigation of the failure of former officers and directors for losses in ex- gross negligence by a majority of the cul- United Savings Association of Texas cess of $200 million. The proposed claims in- pable Board members is sufficient to toll the (‘‘USAT’’), the separate investigation of volved significant litigation risk. Most nota- statute of limitations. There is very little, if USAT being conducted by the Office of bly, the principal loss causing events oc- any, evidence of fraud or self-dealing. Thrift Supervision (‘‘OTS’’), current tolling curred more than two years prior to the date B. The Merits agreements, settlement negotiations with of receivership, and were therefore at risk of The law has also moved against us on the United Financial Group, Inc. (‘‘UFG’’), dismissal on statute of limitations grounds. merits of the claims. The claims against USAT’s first tier holding company, and our In light of the Fifth Circuit’s opinion in Hurwitz are more difficult than usual be- decision not to recommend suit by the FDIC Dawson, a split of authority in the federal cause he was not an officer or director of against controlling person Charles Hurwitz trial courts in Texas on the level of culpa- USAT. We believe that his involvement rose and other USAT officers and directors. bility required to toll limitations and the to the level of a de facto director, and for We had hoped to delay a final decision on Supreme Court’s refusal to consider whether some purposes a control person, but his sta- this matter until after OTS decides whether a federal rule should be adopted under which tus presents a notable hurdle. to pursue claims against Hurwitz, et al. How- negligence by a majority of the directors Texas case law has essentially eliminated ever, we were advised on July 21, 1995 that would toll the statute of limitations, our liability for negligence in the name of apply- Hurwitz would not extend our tolling agree- strategy at that time was to assert that ing a very expansive business judgment rule ment with him. Consequently, if suit were to gross negligence was sufficient to the toll defense. We believe the conduct here con- be brought it would have to be filed by Au- the statute of limitations. After briefings stitutes gross negligence as that term is nor- gust 2, 1995. We are not recommending suit with the Deputies to the Directors and fur- mally defined. The law of gross negligence in because there is a 70% probability that most ther discussion with the potential defend- Texas is currently unsettled, but a recent de- or all the FDIC case would be dismissed on ants, we decided to defer an FDIC decision on cision by the Texas Supreme Court an- statute of limitations grounds. Under such whether to assert our claims, in order to fur- nounced a new standard of gross negligence circumstances the staff would ordinarily ther investigate the facts, give time for the that will be very difficult to meet if it is ap- close out the investigation under delegated Texas law on adverse domination to take plied to D&O cases. In Transportation Insur- authority. However, because of the high pro- more concrete shape and ascertain the view ance Company v. Moriel, 879 S.W. 2d 10. (Tex. file nature of this case (evidenced by numer- of OTS. Therefore, the tolling agreements 1994), the Texas Supreme Court defined gross ous letters from Congressmen and environ- were continued. negligence as constituting two elements: (1) mental groups), we are advising the Board in II. OTS’s Involvement viewed objectively from the standpoint of advance of our action in case there is a con- At about the same time that we deferred a the actor, the act or omission must involve trary view. decision on the FDIC’s cause of action, we an extreme degree of risk, considering the I. Background met with OTS staff to discuss the possibility probability and magnitude of the potential As you know, USAT was placed into re- of OTS pursuing these claims (plus a net harm to others, and (2) the actor must have ceivership on December 30, 1988 with assets worth maintenance agreement claim) actual, subjective awareness of the risk in- of $4.6 billion. The estimated loss to the in- through administrative enforcement pro- volved, but nevertheless proceed in conscious surance fund is $1.6 billion. After a prelimi- ceedings. After several meetings with senior indifference to the rights, safety, or welfare nary investigation into the massive losses at staff of the OTS Office of Enforcement, we of others. This new standard, if applied, USAT, the FDIC negotiated tolling agree- entered into a formal agreement with the would make it very difficult, if not impos- ments with UFG, controlling person Charles OTS, who began an independent investiga- sible, to prove our claims. Hurwitz and ten other former directors and The effect of these recent adverse decisions tion into the activities of various directors officers of USAT/UTF who were either senior is that there is a very high probability that and officers of USAT, Charles Hurwitz, UFG, officers or directors that were perceived as much or all of the FDIC’s conventional as well as USAT’s second tier holding com- having significant responsibility over the claims will not survive a motion to dismiss pany, Maxxam, Inc., a publicly traded com- real estate and investment functions at the on statute of limitations grounds. We would pany that is largely controlled by Hurwitz. institution. The FDIC is paying OTS’s costs in connec- also be at increased risk of dismissal, or loss In May 1994, after a series of meetings with at trial, on the merits. tion with this matter. the potential defendants and the exchange of The OTS has reviewed extensive docu- IV. The Pacific Lumber—Redwood Forest Mat- considerable documents and other informa- mentation and has recently conducted a se- ter tion, we prepared a draft authority to sue ries of administrative depositions. We have Any decision regarding Hurwitz and the memorandum recommending that we pursue been informed that OTS staff is currently former directors and officers of USAT is claims against Hurwitz and certain USAT preparing a broad-based draft Notice of likely to attract media coverage and com- former officers and directors for losses in ex- Charges against Hurwitz and others, includ- ment from environmental groups and mem- cess of $200 million. The proposed claims in- ing Maxxam, for substantial restitution for bers of Congress. Hurwitz has a reputation as volved significant litigation risk. Most nota- unsafe and unsound practices and for en- a corporate raider, and his hostile takeover bly, the principal loss causing events oc- forcement of a net worth maintenance agree- of Pacific Lumber attracted enormous pub- curred more that two years prior to the date ment. Under the terms of our agreement licity and litigation because of his har- of receivership, and were therefore at risk of with OTS, FDIC will be the beneficiary of vesting of California redwoods. Environ- dismissal on statute of limitations grounds. any recovery from the OTS enforcement ac- mental interests have received considerable In light of the Fifth Circuit’s opinion in tion through settlement or litigation against publicity in the last two years, suggesting Dawson, a split of authority in the federal the proposed respondents. All the potential exchanging our D&O claims for the redwood trial courts in Texas on the level of culpa- respondents in the OTS investigation, in- forest. On July 21, we met with representa- bility required to toll limitations and the cluding Hurwitz, have signed tolling agree- tives of the Department of the Interior, who Supreme Court’s refusal to consider whether ments with OTS which expire on December informed us that they are negotiating with a federal rule should be adopted under which 31, 1995. OTS staff’s current expectation is Hurwitz about the possibility of swapping negligence by a majority of the directors that they will seek formal approval for this various properties, plus possibly the FDIC/ would toll the statute of limitations, our case before the tolling agreements, expire on OTS claim, for the redwood forest. They strategy at that time was to assert that December 31, 1995. stated that the Administration is seriously gross negligence was sufficient to the toll III. Significant Caselaw Developments Have interested in pursuing such a settle- the statute of limitations. After briefings Further Weakened the Viability of Suit by ment.* * * We plan to follow up on these dis- with the Deputies to the Directors and fur- the FDIC cussions with the OTS and the Department ther discussion with the potential defend- Although we have continued to investigate of Interior in the coming weeks. * * * the ants, we decided to defer an FDIC decision on and refine our potential claims during the Hurwitz tolling agreement * * expires, we whether to assert our claims, in order to fur- *** pendency of the OTS investigation, two sig- ther investigate the facts, give time for the nificant court decisions, and the failure of Texas law on adverse domination to take Congress to address the statute of limita- DRAFT more concrete shape and ascertain the views tions problems, have further weakened the Attorney Client Privilege Attorney, Work of OTS. Therefore, the tolling agreements FDIC’s prospects for successfully litigating Product were continued. our claims in the United States District Memorandum To: Board of Directors, Fed- II. OTS’s Involvement Court for the Southern District of Texas. eral Deposit Insurance Corporation. At about the same time that we deferred a A. Statute of Limitations From: Jack D. Smith, Deputy General Coun- decision on the FDIC’s cause of action, we In the recent decision of RTC v. Acton, 49 sel. Stephen N. Graham, Associate Direc- met with OTS staff to discuss the possibility F.3d 1086 (5th Cir. 1995), the Fifth Circuit tor (Operations)—DAS. of OTS pursuing these claims (plus a net

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00117 Fmt 0666 Sfmt 0634 E:\CR\FM\A20DE8.293 pfrm07 PsN: E20PT1 E2456 CONGRESSIONAL RECORD — Extensions of Remarks December 20, 2001 worth maintenance agreement claim) Texas case law has essentially eliminated tions issue rather than FDIC staff. If the through administrative enforcement pro- liability for negligence in the name of apply- Board were to decide to go forward with the ceedings. After several meetings with senior ing a very expansive business judgment rule filing of a complaint, we need to file the staff of the OTS Office of Enforcement, we defense. We believe the conduct here con- complaint in the Southern District of Texas, entered into a formal agreement with the stitutes gross negligence as that term is nor- on or before, Wednesday, August 2, 1995. If OTS, who began an independent investiga- mally defined. The law of gross negligence in the Board has no objection to the proposed tion into the activities of various directors Texas is currently unsettled, but a recent de- staff action to allow the tolling agreements and officers of USAT, Charles Hurwitz, UFG, cision by the Texas Supreme Court an- to expire, the Board need take no formal ac- as well as USAT’s second tier holding com- nounced a new standard of gross negligence tion. pany, Maxxam, Inc, a publically traded com- that will be very difficult to meet if it is ap- We are available to discuss this matter at pany that is largely controlled by Hurwitz. plied to D&O cases. In Transportation Insur- your convenience. The FDIC is paying OTS’s costs in connec- ance Company v. Moriel, 879 S.W.2d 10 (Tex. Concur: William F. Kroener, III, General tion with this matter. 1994), the Texas Supreme Court defined gross Counsel. The OTS has reviewed extensive docu- negligence as constituting two elements: (1) Concur: John F. Bovenzi, Director, DAS. mentation and has recently conducted a se- viewed objectively from the standpoint of ries of administrative depositions. We have the actor, the act or omission must involve APPENDIX 2 been informed that OTS staff is currently an extreme degree of risk, considering the RECORD 1 preparing a broad-based draft Notice of probability and magnitude of the potential Charges against Hurwitz and others, includ- harm to others, and (2) the actor must have To: Robert DeHenzel. ing Maxxam, for substantial restitution for actual, subjective awareness of the risk in- Cc: Ben Groner, James Cantrell. unsafe and unsound practices and for en- volved, but nevertheless proceed in conscious From: Paul Springfield forcement of a net worth maintenance agree- indifference to the rights, safety, or welfare Subject: Strange Call—United S&L Houston, ment. OTS staff plans to seek formal ap- of others. This new standard, if applied, TX. proval for this case in the relatively near fu- would make it very difficult, if not impos- Date: Friday, November 19, 1993. ture. Under the terms of our agreement with sible, to prove our claims. Bob, yesterday, Mary Saltzman sent an E- OTS, FDIC will be the beneficiary of any re- The effect of these recent adverse decisions mail to Ben Groner and me regarding a call covery from the OTS enforcement action is that there is a very high probability that she received from an individual named Bob through settlement or litigation against the the FDIC’s claims will not survive a motion Close. I will also forward her E-Mail to you. proposed respondents. All the potential re- to dismiss on statute of limitations grounds. Yesterday afternoon an individual who iden- spondents in the OTS investigation, includ- We would also be at increased risk of dis- tified himself as Bob Close called me. His ing Hurwitz, have signed tolling agreements missal on the merits. Because there is only a primary question was that he wished to with OTS which expire on December 31, 1995. 30% chance that we can avoid dismissal on speak to the individual who was inves- III. Significant Caselaw Developments Have statute of limitations grounds, and because tigating the United S&L failure. I asked him Further Weakened the Viability of Suit by even if we survived a statute of limitations the reason for his request and who he was. the FDIC motion, victory on the merits (especially on His reponse was that he was working with Although we have continued to investigate the claims most likely to survive a statute some environmental groups and he under- and refine our potential claims during the of limitations motion) is uncertain given the stood that FDIC had a claim against United pendency of the OTS investigation, two sig- state of the law in Texas, we do not rec- for $532 MM (I believe this is the amount nificant court decisions, and the failure of ommend suit on the FDIC’s potential claims. stated) and he referred to Charles Hurwitz Congress to address the statute of limita- IV. The Pacific Lumber—Redwood Forest Mat- specifically and to Taxpayers money lost in tions problems, have further weakened the ter the institution. Seems like the amount of FDIC’s prospects for successfully litigating A decision not to sue Hurwitz and the loss stated was $1.9 Billion. He went on to our claims in the United States District former directors and officers of USAT is say that people like Hurwitz needed to be Court for the Southern District of Texas. likely to attract media coverage and criti- ‘‘stopped’’. He also related that he was work- A. Statute of Limitations cism from environmental groups and mem- ing with a group in New York identified as ‘‘Wetlands’’ and in Northern California a In the recent decision of RTC v. Action, 49 bers of Congress. Hurwitz has a reputation as group called ‘‘EPIC’’. He gave the name this F.3d 1086 (5th Cir. 1995), the Fifth Circuit a corporate raider, and his hostile takeover stood for which I do not recall, but it was en- held that under Texas law, only self-dealing of Pacific Lumber attracted enormous pub- vironmental something. I asked him what or fraudulent conduct, and not gross neg- licity and litigation because of his har- was the source of his information and the ligence, is sufficient to toll the two year vesting of California redwoods. Environ- purpose of his call. He was vague about the statute of limitations under the doctrine of mental interests have received considerable purpose but related the following names as adverse domination. As a result of this opin- publicity in the last two years, suggesting exchanging our D&O claims for the redwood sources of his information. ion, we cannot rely on an argument that Attorney; Bob Bertain and Investigator; gross negligence by a majority of the cul- forest. On July 21, we met with representa- tives of the Department of the Interior, who Bob Martell, both in Northern California. He pable Board members is sufficient to toll the also gave a telephone number where he could statute of limitations. There is very little, if informed us that they are negotiating with Hurwitz about the possibility of swapping be reached later in the week * * *He indi- any, evidence of fraud or self-dealing. cated this was in Acadia California. He said All of the affirmative acts that would form various properties, plus possibly the FDIC/ he was currently in New York. He indicated the basis for an FDIC suit occurred more OTS claim, for the redwood forest. They this was in Acadia California. He said he cur- than two years before USAT failed. Thus, the stated that the Administration is seriously rently in New York until today and could be only claims that have any chance of sur- interested in pursuing such a settlement. This is feasible with perhaps some new mod- reached through James Hansen * * * viving a motion to dismiss based on statute Frankly, I do not know whether this indi- est legislative authority because USAT is a of limitations grounds are claims based on vidual is some kind of radical Tree Hugger FRF institution and therefore USAT recov- USAT’s failure to unwind some positions in on a mission to save the forest in California eries redound to the benefit of the U.S. mortgage backed securities and derivative or someone seeking to confirm whether FDIC Treasury. We plan to follow up on these dis- instruments as soon as that should have been is in process of going after Hurwitz and cussions with the OTS and the Department done. The statute of limitations risks in this United. I am a little suspicious, however, as of Interior in the coming weeks. When the argument are (1) all of the money was put at to the motives stated by the individual, in Hurwitz tolling agreement expires, we would risk more than two years before failure, and light of the specific dollar figures he related recommend that we update those Congress- (2) if there is a claim based on USAT being in the conversation but I do not want to men who have inquired about our investiga- late in unwinding these transactions (we come across sounding paranoid. I did not re- tion and make it clear that this does not end think it should have been done starting no late to him who was assigned to the Inves- the matter of Hurwitz’s liability for the fail- later than January 1, 1987), there is a real tigation or that I worked in Investigations. ure of USAT because of the ongoing OTS in- likelihood of a court finding that they Further, I did not ask him how he obtained vestigation. should have unwound them more than two my name and telephone #. years before failure. V. Updated (Draft) Authority to Sue Memo- I do not know whether to ignore this situa- In short, we have an argument for pursuing randum tion or not but I feel certain the individual some claims, but that argument is not likely In light of the complexity and visibility of will call me again since he was my name and to prevail. this matter, and the short timeframes, we in the course of the convervation I related B. The Merits have attached for your information an up- that I would need to look into his request to The law has also moved against us on the dated (draft) authority to sue memorandum. talk to the Investigator. This was simply a merits of the claims. The claims against It sets forth the theories (and weaknesses) of ploy to obtain information from him. Hurwitz are more difficult than usual be- our proposed claims in some detail. Whether There is a possibility you may wish to cause he was not an officer or director of that memorandum sets out a viable claim on speak to this individual to determine wheth- USAT. We believe that his involvement rose the merits should be considered by the Board er he may have information that is bene- to the level of a de facto director, but his if the Board decides that it wants the Texas ficial to our cause if he is who he says he is. status presents a notable hurdle. district court to decide the statute of limita- If so, please advise and I will relate this to

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00118 Fmt 0666 Sfmt 0634 E:\CR\FM\A20DE8.295 pfrm07 PsN: E20PT1 December 20, 2001 CONGRESSIONAL RECORD — Extensions of Remarks E2457 him; otherwise, I will do nothing and if he claims against Maxxam in exchange for pub- and many others. We believe Congressman calls I will state that his request to speak to lic title to ancient redwoods and other sen- Young’s actions are a clear abuse of Congres- the Investigator cannot be granted. If you sitive habitat in the Headwaters Forest area. sional subpoena authority and a heavy-hand- wish to discuss this further, call me at * * * Rose has researched and documented the fac- ed attempt to dissuade citizens from exer- To: Mary Saltzman, Ben Groner. tual and legal basis for FDIC and Treasury cising their constitutional right to petition Cc: Martha F. Boyles-Hance. Department suits against Maxxam and CEO the government regarding issues of concern. People can contact their Congressional and From: Paul Springfield. Charles Hurwitz. The suits seek $800+ million Senate representatives to ask them to sup- Subject: United S&L—Strange Call. restitution for the failure and taxpayer bail- port Debt for Nature and do everything in Date: Monday, November 22, 1993. out of Maxxam/Hurwitz’ Texas Savings and their power to ease a Debt for Nature swap Forwarded by: Paul Springfield. Loan. Maxxam credits Rose with catalyzing the suits. We also led shareholder campaigns for the agencies. It could help save the Head- Forwarded to: James Cantrell. for four years to reform Maxxam’s corporate waters today, and other valuable and threat- Forwarded date: Monday, November 22, 1993. governance and forest management prac- ened habitat tomorrow. Comments by: Paul Springfield. tices. In the most recent campaign (which Comments: Jim. FYI. Maxxam presented as ‘‘a referendum on Debt RECORD 2 [Original Message] For Nature’’), 80% of the shares outside of In light of the magnitude of the losses and I had a conversation with PLS attorney Hurwitz’ control voted for our resolutions, the FDIC’s well considered evaluation of li- Bob DeHenzel, Friday afternoon, 11–19–93, to and almost 50% voted to toss out Maxxam’s ability, I am particularly concerned that a devise an approach as to the appropriate Board in favor of our candidates. formal action has not yet been filed. Al- manner to deal with the inquiry from Dan It’s now or never for Debt for Nature. The though the FDIC has not publicly quantified Close. We determined that Mr. Close was to Treasury Dept. is all but concluded. This the claim, the UFG’s 10-K estimated the pose his inquiry in written form and address summer, the judge will make an advisory claim of $545 million failure to maintain the it directly to DeHenzel. I related this infor- ruling to the director of the Treasury’s minimum net worth and failure to remit tax mation to Close via another party that an- banking regulatory division. The director returns alone. swered the telephone # he had left. will then issue a restitution order. We be- My concern about this matter has been DeHenzel indicated he had some knowledge lieve Treasury has proven its case, and a heightened by my colleague Dan Hamburg, about the nature of the inquiry as well as the large restitution order is imminent. Maxxam who recently introduced legislation to ac- attorney Bill Bertain disclosed by Close. has many reasons to settle, and to offer quire ancient redwood forests owned by Pa- DeHenzel stated that this group was involved forestlands instead of cash: cific Lumber Company (PALCO). Principals in fighting a take over action of some com- A huge cash judgment could bankrupt in PALCO who acquired the company in 1985 pany by Hurwitz involving forest property in Maxxam. with Drexel Burnham/Milken high yield the northwestern United States. Apparently Some of Maxxam’s largest investors tell us bonds were also involved in the UFG/USAT they are trying to obtain information to uti- that they prefer debt for nature to a cash transactions. Evaluation of their liabilities lize in their efforts. payment. to the Federal government becomes particu- Hopefully, this will close the book, at least Debt for Nature is a win-win. Maxxam larly critical as the prospect of payment for from the Investigative perspective. Every- could trade forestlands which they can’t cut property acquisition proceeds. one, have a great holiday. profitably (but are environmentally price- I would appreciate your earliest possible less) in exchange for settling the federal response. To: Paul Springfield. claims and resolving some of Maxxam’s most Sincerely, Cc: Ben Groner. pressing and costly environmental disputes. HARRY B. GONZALEZ, From: Mary Saltzman. But FDIC & Treasury’s position is that Chairman. Subject: re: Strange Call-United S&L Hous- their mandate is to recover cash, not forest. ton, Tx. THE FAILURE OF UNITED SAVINGS ASSOCIATION If they took Headwaters forestlands in lieu OF TEXAS (USAT) Date: Monday, November 22, 1993. of cash, their mandate would be to liquidate FACT SHEET Forwarded by: Paul Springfield. the property or demand an equal value ex- Forwarded to: James Cantrell. change from Interior or BLM. An existing The FDIC has an outstanding claim Forwarded date: Monday, November 22, 1993. law (Coastal Barrier Resources Act) already against United Financial Group, holding Comments by: Paul Springfield. allows banking regulatory agencies to trans- company for the failed USAT in excess of Comments: Whoops. Sent the wrong one ear- fer property they acquire which is adjacent $548 million dollars. (United Financial Group lier. to an existing reserve, to resource manage- 10–K Report year ending 12/31/92). Five years have passed since this claim ment agencies. Rose seeks an amendment Forwarded to: Ben Groner. was asserted in 1988, and while the FDIC has which would clarify that the banking agen- Cc: Martha F. Boyles-Hance. extended the statute of limitations through cies could donate such property to resource Forwarded date: Monday, November 22, 1993. tolling agreements, the current statute of management agencies—avoiding the unac- Comments by: Paul Springfield. limitations ends on December 30, 1998. (UFG ceptable situation of forcing Interior to liq- Comments: Ben, the E-Mail being forwarded 10–K Report year ending 12/31/92). uidate some other holdings in exchange for seems to indicate where the party ob- When it was seized in 1988 by the FDIC, saving the Headwaters. FDIC (which has ac- tained my name. You will receive an- USAT was a wholly-owned subsidiary of knowledged that it is funding Treasury’s other E-Mail from me that should con- United Financial Group whose controlling case) would be much more aggressive in pur- clude this matter, at least for now. shareholders at the time of the collapse was suing a Debt for Nature settlement if they Thanks. Charles Hurwitz-run companies MAXXAM, had Congressional approval to donate recov- [Original Message] MCO, and Federated Development Corp. ered Headwaters forestlands to Interior. The Thanks for fielding that one, Paul! I re- Also, Drexel, Burnham, Lambert was a 8% amendment would also be good policy in its ceived the first call late on Thursday and shareholder (Washington Post, 4/16/91, own right—our research has already uncov- checked the institution on DOLLAR$. His MAXXAM Prospectus, 1988 and FDIC v. ered four other examples where such a policy comments were too close to be comfortable, Milken). would have facilitated public acquisition of and with all the bad publicity we have had in From 1986 to 1988, USAT purchased over properties that Interior was already trying the Scripps Howard papers lately I didn’t feel $1.3 billion worth of Drexel-underwritten to conserve. junk bonds. During that same period of time, I could pass him off to an ombudsman who We need to make significant progress in according to an FDIC lawsuit against Mi- might or might not understand the confiden- this Congress to show FDIC/Treasury that chael Milken, ‘‘the Milken group raised tiality of our claims. Anyway, at that hour I Debt For Nature is worth considering. We about $1.8 billion of financing for Hurwitz’s felt it was better to pass him directly on to also need to continue to keep the heat on takeover venture,’’ which included the 1988 you or to Ben so that you could deal with Hurwitz through his stockholders to force takeover of the Pacific Lumber Company, him. Sounds like you got some information Maxxam to agree to a Debt For Nature set- the world’s largest producer of old growth from him. The excitement never ends. tlement. Haven’t seen you in a while, hope all is well It will not be an easy fight. Several Mem- redwood. (FDIC v. Milken). According to Fortune, the failure of USAT with you. Have a good Holiday. .MMS bers of Congress, including House Majority constituted the fifth largest failed S&L bail- Whip Tom DeLay (R–TX), and Resources out, as of 1990, costing the taxpayers $1.6 bil- Committee Chair Don Young (R–AK), have RECORD 1A lion. (Fortune, 8/10/90). [From the Trees Foundation, July 17, 2000] demanded access to all of FDIC and OTS’ sensitive legal research and background in- A FINAL PUSH FOR DEBT FOR NATURE formation that is crucial to their case. More RECORD 2A (By the Rose Foundation) chilling from a constitutional and public lib- Meeting with Rep. Hamburg For six years, the Rose Foundation has erty standpoint, Congressman Young is de- Hamburg—Wanted to have the meeting. worked with other activists to save Head- manding all records of any communications Have an immediate interest in the case. In- waters Forest through a Debt for Nature with activists and organizations who support terested enough over potential filing of com- land swap. Debt for Nature means resolving Debt For Nature—including specifically plaint to ask what is about to proceed. Real- hundreds of millions in pending federal Rose, Trees Foundation, EPIC, Sierra Club, ized that this possible avenue would be lost.

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00119 Fmt 0666 Sfmt 0634 E:\CR\FM\A20DE8.298 pfrm07 PsN: E20PT1 E2458 CONGRESSIONAL RECORD — Extensions of Remarks December 20, 2001 Received letter from * * *. Hope to get deci- I. Background FHLBB approval for his plan to use UFG’s sion by May ’94. In 1982, Charles Hurwitz, a well-known assets, which included the dividend from What is status of investigation? What are Houston investor active in corporate acquisi- USAT, to retire its acquisition debt. He ob- key factors? Is there specific date by which tions and divestitures, formulated a plan to tained approval by using his purported will- intend to make decision? What other agen- combine two Houston-based savings and ingness to contribute capital to USAT via a cies involved? Who is working on case? Mul- loans holding companies, UFG (which owned Southwest Plan transaction involving USAT. tiple attorneys? Reoccurring learning curve? 100 percent of USAT) and First American Fi- USAT admitted a failure to comply with Interesting to me as to why it takes so long nancial of Texas (‘‘First American’’). He ef- net worth requirements as of December 31, on 5th largest S&L failure in country. fectuated the acquisition by acquiring 23.3% 1987. On May 13, 1988, the FHLB-Dallas di- Smith—Failure in Dec. 1988. Very difficult of UFG’s stock through MCO and FDC, both rected UFG to infuse additional equity into to do a swap for trees. The investigation has of which he controlled, for approximately USAT sufficient to meet minimum regu- looked at several areas. Claim on the net $7.6 million. latory capital requirements. UFG did not worth maintenance agents. The FHLBB approved UFG’s merger with comply. On December 8, 1988, the FHLB-Dal- Thomas—Have been attempts to enforce First American on April 29, 1983 by Resolu- las issued a second written directive to UFG. this. We can’t find signed agent before tion No. 83–252 (the ‘‘Resolution’’). First UFG again refused to comply. On December FSLIC. We’ve never found the agent. Are American was merged into UFG and First 30, 1988, FSLIC was appointed receiver of claims Hurwitz has signed * * * agent to 3/1. American’s insured subsidiary was merged USAT and continued to make net worth de- J. Smith—We look for wrongdoing. Some into USAT. Approval was conditioned upon mands on UFG, which were not honored. might meet our standards. We look at is it a UFG maintaining the net worth of USAT at III. Potential Claims by the FDIC-Receiver good case and is it cost efficient. Are looking regulatory mandated levels and upon USAT Federal Courts have uniformly held that claims that in most optimistic dreams of it not paying dividends exceeding 50 percent of the FDIC, the RTC and the FSLIC as re- would be. USAT’s yearly ‘‘net income.’’ ceiver of failed financial institutions have no If can convince other side that we have The NWM commitment was contained in implied private or federal common law cause claim worth $400 million they want to settle. Paragraph 6 of the Resolution. It provided, of action to enforce the terms of NWM agree- Could be a hook into the holding co. in pertinent part, that UFG: ‘‘shall stipulate ments. FSLIC v. Savers, Inc., No. LR–C–89–529 Copy of testimony and Dawson case. to the [FSLIC] that as long as it controls (E. D. Ark. 1989); RTC v. Tetco, 758 F. Supp. Dept. of Labor. [USAT], [UFG] will cause the net worth of 1159 (W. D. Tex. 1990); and In Re Conner Corp., SEC Kate Anderton—Rep. Hamburg. [USAT] to be maintained at a level con- 127 B. R. 775 (E. D. N. C. 1991). All three of 2/3/94 sistent with that required by Section these decisions relied upon FSLIC v. Capozzi, Congressman Hamburg; Kate Anderton; 855 F.2d 1319 (8th Cir. 1988), vacated on other Kelsy Meek 563.13(b) of the Rules and Regulations of the [FSLIC] .... and, as necessary, will infuse grounds, 490 U.s. 1062 (1989), which held that Armando,—Tip us off about the law firm implying a private right of action for viola- don’t have $600/hr red flag. sufficient additional equity capital, in a form satisfactory to the Supervisory Agent, tion of thrift regulations would not comport 39,000—cut over with the purposes of the underlying statu- 5,000 acres—left old growth to effect compliance with such require- tory framework; the court deemed those pur- Cutting of the groves is limited by endan- ment.’’ poses to be prospective rather than compen- gered species The Resolution also required UFG to file a satory. J. Thomas higher risk than most. certification with the Supervisory Agent, In Savers, the court also found that a hold- Civil money penalties—have any deposi- within 30 days of the acquisition, stating the ing company’s net worth maintenance com- tion been taken. effective date of the acquisition and that the mitment was not enforceable as a private DOL—pension lawsuit Exec. Life against acquisition had been consummate and in ac- contract because the holding company was Exec. Life Maxxam cordance with the provisions of all applica- required by law to comply with the net SEC—filings against Maxxam call ble law, and regulations. UFG and Hurwitz deny, and we have been unable to establish worth maintenance regulation, and therefore that they signed a NWM stipulation or a cap- its commitment to abide by the regulation RECORD 5 ital maintenance agreement with the was not ‘‘bargained for’’ consideration which FEBRUARY 2, 1994. FHLBB. would support a contract. While the bankruptcy court in Conner PRIVILEGED AND CONFIDENTIAL ATTORNEY II. Utilization of USAT to Upstream Dividends similarly held that a holding company’s WORK PRODUCT to UFG promise to maintain the net worth of a sav- Memorandum To: Jack D. Smith, Deputy Hurwitz gained control of USAT for an ini- ings and loan association did not constitute General Counsel. tial investment of less than $8 million, yet in legal consideration, the court also held that From: Patricia F. Bak, Counsel and Robert 1984, he caused USAT to sell off approxi- the NWM stipulation did not constitute J. DeHenzel, Jr., Senior Attorney. mately one-half of its retail branch network, ‘‘offer and acceptance’’ that would give rise Subject: United Savings Association of Texas and on the basis of profits booked on these to a legally binding contract. Net Worth Maintenance Claims. sales, USAT issued a cash dividend of The Tetco court did not agree with the This memorandum summarizes potential $32,687,218 to UFG on March 18, 1985. Ini- Conner and Savers analysis of consideration. claims by the FDIC and the OTS against tially, this dividend was used to fund parent The Tetco court did, however, agree with United Financial Group, Inc. (‘‘UFG’’, for company operations and without it, UFG Conner that a NWM condition in a resolution failure to maintain the net worth of United would have experienced serious financial granting deposit insurance was a statement Savings Association of Texas (‘‘USAT’’) as problems. In June 1988, some of the remain- setting forth a regulatory condition, and a required by federal regulation. Based on our ing proceeds were used to retire a substan- net worth stipulation was merely an ac- review, we conclude that the FDIC has no tial part of UFG’s acquisition debt. knowledgment of regulatory requirements— viable claim against UFG for failure to The issuance of this dividend to UFG based statements which did not constitute a le- maintain USAT’s net worth pursuant to a on a one-time asset sale was imprudent. At gally binding contract. The court noted: net worth maintenance (‘‘NWM’’) stipula- the time of the dividend, USAT was unable ‘‘The terms of the net worth agreement and tion. Although a number of federal courts to generate profit from continuing oper- the regulatory approvals were never the sub- have held that federal banking agencies act- ations and the reduction in its regulatory ject of negotiations between the parties; ing as receivers for failed financial institu- net worth as a result of this transaction was their scope and effect were preordained to tions do not have a private right of action likely to require capital infusions. Further, the letter by the regulators. The Court be- for breach of NWM stipulations, the Court of while USAT reported Regulatory Capital of lieves there is no genuine issue of material Appeals for the Fifth Circuit has held that $207 million at the time the dividend was de- fact that the parties’ intent was to fulfill the such regulatory commitments are enforce- clared, USAT was not reporting itself insol- prerequisites of a regulatory blueprint. It able in cease and desist proceedings, even vent only because it had ‘‘goodwill’’ of $256 was not to create independent contractual post receivership. Accordingly, the OTS may million on its books as a result of USG’s ac- obligations. 758 F.Supp at 1162.’’ be able to pursue a NWM claim against UFG quisition of three other thrifts between 1981 The court further concluded that the NWM for failure to maintain USAT’s net worth, and 1983. Absent goodwill, USAT would have commitment did not involve ‘‘the type of pursuant to 12 USC § 1818(b)1. This adminis- had a negative net worth of $49 million at comprehensive agreement’’ that could, inde- trative proceeding must be commenced on or the time the dividend was paid. pendent of the regulations, be said to create before December 30, 1994, within six years of Although regulators expressed ‘‘no super- existing rights and obligations within the USAT’s failure. It is unclear whether OTS visory objection’’ to the dividend before it meaning of FIRREA or contract. has a viable claim against MCO Holdings, was paid, there is evidence that they were Finally, the court held that there is no pri- Inc. (‘‘MCO’’) and Federated Development misled by USAT. Moreover, beginning in late vate right of action to enforce a regulatory Corp. (‘‘FDC’’), which together owned at 1985, when USAT did, in fact, require addi- net worth maintenance condition, citing least 23% of UFG, although an argument tional capital, UFG declined to return this Ameribanc Investors Group v. Zwart, 706 F. could be made that MCO/FDC functioned as a dividend to USAT through a capital infusion. Supp. 1248 (E.D.Va. 1989) (holding that nei- de facto Savings and Loan Holding Company When it became certain that the FHLB ther the Bank Holding Act nor the Change in (‘‘SLHC’’) and should be responsible for would demand that UFG contribute addi- Control Act, 12 U.S.C. § 1730(q)(1) create a pri- maintaining USAT’s net worth. tional capital to USAT, Hurwitz obtained vate right of action for damages caused by

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00120 Fmt 0666 Sfmt 0634 E:\CR\FM\A20DE8.302 pfrm07 PsN: E20PT1 December 20, 2001 CONGRESSIONAL RECORD — Extensions of Remarks E2459 failure to comply with regulatory require- six years of separation from the institution. had the right to put to MCO, an additional ments). The amendments also encompassed separa- 3% of UFG common stock; In any event, quite apart from the weight tion from the institution. The amendments (d) UFG’s issuance to MCO/FDC, in 1985, of of authority holding that no private right of also encompassed separation effected UFG preferred stock which was convertible action for breach of contract exists, as noted through a closing, such as is the case here, of to UFG common; above, the FDIC can point to no evidence an institution. 950 F.2d at 1184.’’ (e) common officers and directors among showing that either UFG or Hurwitz signed a Finally, the Akin court rejected the argu- MCO, FDC and UFG, and net worth maintenance agreement. ment that post-closing exercise of cease and (f) the actual operating control of all three entities exercised by Charles Hurwitz. IV. OTS Administrative Proceedings pursuant to desist powers would unlawful usurp receiver- 12 USC § 1818(b)(1) ship authority. The court noted that in the Although the FDIC cannot prevail on a di- absence of clear congressional intent to im- RECORD 3B rect claim against UFG for violation of the pose an automatic stay of cease and desist FEDERAL DEPOSIT INSURANCE NWM stipulation, the OTS has the statutory proceedings upon receivership, the court CORPORATION, authority to pursue a NWM claim against need only look to ‘‘whether the agency’s [ac- Washington, DC, December 3, 1993. UFG in an administrative proceeding, pursu- tion] is based on a permissible construction Memo To: Chairman Hove. ant to 12 USC § 1818(b)1. See, Akin V. OTS, of the statute.’’ Chevron U.S.A., Inc. v. Nat- From: Alan J. Whitney, Director. 950 F.2d 1180 (5th Cir. 1992) holding that NWM ural Resources Defense Council, Inc., 467 U.S. Subject: Significant Media Inquiries and Re- agreement is enforceable in cease and desist 837, 842–43, 104 S. Ct. 2778, 2781–82, 81 L. Ed. 2d lated Activities, Week of 11–29–93. proceedings, and that attack on the validity 694 (1984). Regulatory Consolidation: Several news or- of the agreement for lack of consideration A. Involuntary Bankruptcy Petition Filed ganizations have asked what the FDIC’s po- must fail in light of Groos National Bank v. Against UFG sition is on the agency consolidation pro- Comptroller of the Currency, 573 F.2d 889 (5th On November 25, 1992, UFG’s preferred posal unveiled last week by Treasury. They Cir. 1978)). In Groos, the court rejected an ar- shareholders filed an involuntary bank- were told you believed that with Board ap- gument that a supervisory agreement was ruptcy petition against UFG seeking a reor- pointments imminent, it would be inappro- invalid because of a lack of consideration: ganization under Chapter 11 of the Bank- priate to take an agency position until the ‘‘The statute provides that a cease and desist ruptcy Code. If the bankruptcy petition is full board is in place. order may issue upon any violation of an eventually heard on the merits and the court Thrift conversions: Crain’s New York Busi- agreement between the agency bank and grants the petition in bankruptcy, the OTS ness, Philadelphia Inquirer and American says nothing of consideration. Nor is there may proceed on the NWM claim, if it deems Banker newsletters inquired about the thrift any reason to import the common law of it appropriate, by filing a motion in the mutual-to-stock conversion policy that the consideration, proper to private contractual bankruptcy court to require the trustee or FDIC is currently developing, specifically when our position on this subject will be relations, into the relationships between a debtor-in-possession to make good on UFG’s published. The calls came after American regulatory agency and the entity it regu- commitment to maintain the regulatory Banker ran an article in the Nov. 26 edition lates. The Comptroller is authorized by stat- capital of USAT. Section 365(o) of the Bank- reporting on Rep. Gonzalez’ legislation to ute to exercise extensive controls upon ruptcy Code provides: ‘‘In a case under Chap- limit thrift management profits from the ter 11 of this title, the trustee...shall im- banks; the statute clearly contemplates that conversions. We also received several inquir- mediately cure any deficit under any com- agreements may occur between the Comp- ies about our response to Cong. Neal’s letter mitment by the debtor to. . . the Director of troller * * * and if the Comptroller does of November 22 to you on the same subject, enter such an agreement by way of attaining the Office of Thrift Supervision...or its to which we have not yet responded. voluntary compliance, we will not introduce predecessors...to maintain the capital of O’Melveny & Myers: On Monday, the Su- the trappings of common-law consideration an insured depository institution.’’ preme Court agreed to hear this case, involv- to question that agreement. 573 F.2d at 896.’’ The purpose of Section 365(o) is ‘‘to pre- ing the FDIC’s ability to sue attorneys who In Akin, the court noted that under 12 vent institution—affiliated parties from represented banks that failed. The decision U.S.C. § 1818(b), the OTS director has expan- using bankruptcy to evade commitments to to hear the case prompted a flurry of press sive authority to issue cease and desist or- maintain capital reserve requirements of a inquiries about similar cases past and ders to correct violations of regulations or federally insured depository institution.’’ In present. We provided some statistical data written agreements between the agency and re First Corp., Inc., 973 F.2d 243, 246 (4th Cir. and limited information about the Jones Day an institution affiliated party, including the 1992). By operation of this section, if the pre- case, which is still active. power to seek reimbursement and restitution ferred shareholders are successful in their ef- First City Bancorporation: Bloomberg when a party has been unjustly enriched fort to force UFG into Chapter 11, USFP or Business News, Houston Bureau, called re- through the violation. The court noted that the trustee would have to turn over assets to garding possible settlement in the First City by failing to make capital infusions suffi- OTS in satisfaction of the capital mainte- Bancorporation’s claims case. It seems some- cient to cure the net worth deficiency, Akin nance commitment. If UFG does not make one is talking, because the reporter asked was able to retain capital which otherwise good on that commitment, Chapter 11 relief about a December 14 FDIC Board meeting to would have been contributed to the financial is not available. See Id. at 247. discuss the settlement. The reporter wanted institution. In affirming the director’s order If the adverse parties elect to proceed to know: If the FDIC committee working on requiring Akin to pay over $19 million to re- under Chapter 7, the OTS, in any event, the agreement approves the plan, does that store the net worth deficiency of the institu- should be able to claim a priority over gen- mean the Board will ‘‘rubber stamp’’ it? We tion, the court stated: ‘‘Read in its entirety, eral unsecured creditors as to ‘‘allowed unse- advised the Board does not rubber stamp the statute manifests a purpose of granting cured claims based on any commitment by anything. The Houston Chronicle also made broad authority to financial institution reg- the debtors to maintain the capital of an in- several inquiries about a possible settlement ulators. The statute suggest that unjust en- sured depository institution. 11 U.S.C. in this case, all of which we answered with richment has a broader connotation than in § 507(a)(8).’’ the standard response that we do not com- traditional contract law. Akin voluntarily V. Net Worth Maintenance Claim Against MCO/ ment on ongoing litigation. Los Angeles Times: Michael Parrish asked entered the Agreement with the FSLIC so FDC whether FDIC lawyers have considered that he could retain control over [the finan- On December 6, 1984, pursuant to FHLBB whether we could legally swap a potential cial institution]. He gained the significant Resolution 84–712, MCO and FDC received claim of $548 million against Charles Hurwitz personal benefit of retaining and disposing of FHLBB approval to acquire more than 25% (stemming from the failure of United Sav- funds or property which he was otherwise ob- of UFG and thereby become a SLHC with re- ings Assn. of Texas) for 44,000 acres of red- ligated to contribute to [the institution] in spect to USAT. FHLBB approval was condi- wood forest owned by a Hurwitz-controlled compliance with his agreement to be person- tioned upon MCO/FDC maintaining the net company. We advised Parrish we’re not ally liable for net worth deficiencies. Akin worth of USAT. In late 1987, after extensive aware of any formal proposal of such a trans- has failed to show that the director’s conclu- negotiations with the FHLBB, MCO/FDC re- action. However, we noted that a claim can sion that he was unjustly enriched is arbi- fused to accept these conditions and no be satisfied by relinquishing title to assets, trary and capricious. 950 F.2d at 1183.’’ agreement was made. However, an argument assuming there is agreement on their value. The court, in dicta, appears to reject an ar- could be made that MCO/FDC functioned as a We didn’t go any further with Parrish, but gument that § 1818 enforcement proceedings de facto SLHC with respect to USAT from at Doug Jones notes that even if Hurwitz satis- may only be initiated pre-receivership: ‘‘This least December 31, 1985, by virtue of the fol- fied our claim by giving us the redwoods, it interpretation belies congressional intent lowing: wouldn’t result in what Earth First! (the expressed to adopt broader cease and desist (a) their 23% interest in UFG; folks who demonstrated in front of the main powers with the passage of the FIRREA. The (b) Drexel’s acquisition, in December 1984, building last month) apparently is proposing, FIRREA included an amendment to * * . (3), of 7.2% of UFG’s common stock—a date i.e., that we then deed the redwoods property providing that the regulatory agency’s juris- which coincides with FHLBB Resolution 84– to the Interior Department. That would re- diction to institute cease and desist pro- 712; quire some extensive legal analysis and, ceedings continued beyond a party’s separa- (c) a December 31, 1985 option agreement since any claim we might assert against tion from the regulated institution, as long between MCO and Drexel, whereby MCO had Hurwitz would be a FRF matter, would like- as that party was served with notice within the right to acquire from Drexel, and Drexel ly entail Treasury Department concurrence.

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00121 Fmt 0666 Sfmt 9920 E:\CR\FM\A20DE8.305 pfrm07 PsN: E20PT1 E2460 CONGRESSIONAL RECORD — Extensions of Remarks December 20, 2001

RECORD 3A nation, by purchase with donated or appro- The fact that nonwilderness activities or NOVEMBER 30, 1993. priated funds, or by exchange for other lands uses can be seen or heard from areas within To: Pat Bak owned by any department, agency, on instru- a wilderness shall not, of itself, preclude From: J Smith mentality of the United States. When any such activities or uses up to the boundary of Subject: Hurwitz tract of land is only partly within such the wilderness area. Here are some materials that have been boundaries, the Secretary may acquire all or (d) STATE AUTHORITY OVER FISH AND WILD- sent to me. any portion of the land outside of such LIFE.—As provided in section 4(d)(8) of the (1) H.R. 2866—It may have a chance in Con- boundaries in order to minimize the payment Wilderness Act, nothing in this Act shall be gress—talk to Mike DeLoose (sp?) in legis af- of severance costs. Land so acquired outside construed as affecting the jurisdiction or re- fairs. Passage would put millions more in of the boundaries may be exchanged by the sponsibilities of the State of California with Hurwitz’s pocket. Secretary for non-Federal lands within the respect to wildlife and fish in any areas des- (2) Materials from Chuck Fulton re net boundaries, and any land so acquired and not ignated by this Act as wilderness. worth maintenance obligation. Evidently, utilized for exchange shall be reported to the SEC. 5. ADMINISTRATION. PLS is supposed to pursue that claim. Don’t General Services Administration for disposal (a) MANAGEMENT PLAN.—The Secretary let it fall thru the crack! If it’s not viable we under the Federal Property and Administra- shall develop, within 1 year after the enact- need to have a reliable analysis that will tive Services Act of 1949 (63 Stat. 377). Lands, ment of this Act, a comprehensive manage- withstand substantial scrutiny. and interests in lands, within the boundaries ment plan detailing measures for the preser- of the Headwaters Forest which are owned vation of the existing old growth redwood H.R. 2866 by the State of California or any political ecosystems in the Six Rivers National Forest Be it enacted by the Senate and House of Rep- subdivision thereof, may be acquired only by Addition, including but not limited to each resentatives of the United States of America in donation or exchange. of the following: Congress assembled, (2) The Secretary is authorized to accept (1) Prohibition of sale of timber from lands SECTION 1. SHORT TITLE. from the State of California funds to cover within the old growth redwood groves as de- This Act may be cited as the ‘‘Headwaters the cost for acquiring lands within the Head- picted generally on the map referred to in Forest Act’’. waters Forest, and notwithstanding any section 3(a). Timber sales in other areas SEC. 2. FINDINGS AND PURPOSE. other provision of law, the Secretary may re- shall be allowed consistent with the purposes tain and expend such funds for purposes of (a) FINDINGS.—The Congress finds that: of this Act and other applicable Federal laws (1) Redwoods are a significant national such acquisition. Such funds shall be avail- and regulations. symbol and a defining symbol of the State of able for such purposes without further appro- priation and without fiscal year limitation. (2) Measures to restore lands affected by California. previous timber harvests to mitigate water- (2) Old growth redwood trees are a unique (c) LAND ACQUISITION PLAN.—The Secretary shall develop and implement, within 6 shed degraduation and impairment of habi- and irreplaceable natural resource. tat for the marbled murrelet, spotted owl, (3) Most of the Nation’s old growth forests months after the enactment of this Act, a native salmon stocks, and other old-growth have been cut. Less than 5 percent of the land acquisition plan which contains specific forest dependent species (‘‘Restoration Meas- original 2,000,000 acre Coast redwoods remain provisions addressing how and when lands ures’’). standing. The groves that are left are crucial will be acquired under section (b). The plan to maintain habitat needed for survival of shall give priority first to the acquisition of The Management Plan shall be reviewed and old-growth dependent species. The Head- lands within the boundaries of the Head- revised every time the Six Rivers National waters Forest, for example, is home to one of waters Forest Wilderness identified on the Forest Land and Resource Management plan California’s three largest population of mar- map referred to in section 3(a). The Sec- is revised or more frequently as necessary to bled murrelets, rare sea birds that nest only retary shall submit copies of such plan to meet the purposes of this Act. in coastal old growth trees; the Northern the Committee on Natural Resources, the (b) APPLICABLE LAWS AND POLICIES.—(1) Spotted Owl; and native salmon stocks that Committee on Agriculture, and the Com- The Secretary, acting through the Chief of spawn in the Forest’s creeks. mittee on Appropriations of the United the Forest Service, shall administer the (4) The remaining unprotected stands of States House of Representatives and to the lands acquired under section 3(b) in accord- old growth forests and old growth redwoods Committee on Energy and Commerce, the ance with the Management Plan, this Act, are under immediate threat of being har- Committee on Agriculture, Nutrition, and and with the other laws, rules, and regula- vested without regard to their ecological im- Forestry and the Committee on Appropria- tions applicable to such national forest. In portance and without following Federal tim- tions of the United States Senate. addition, subject to valid existing rights, any ber harvest guidelines. (d) AUTHORIZATION OF APPROPRIATIONS.— lands acquired and designated as wilderness (5) Significant amounts of old growth red- There are hereby authorized to be appro- under section 4(a) shall also be administered woods in the proposed National Forest addi- priated such sums as may be necessary to in accordance with the provisions of the Wil- tions are being cut at a pace that is based on carry out the purposes of this Act. derness Act governing areas designated by paying high interest rates on poor quality SEC. 4. WILDERNESS AREAS. that Act as wilderness, except that any ref- bonds and not at a pace that is based on (a) DESIGNATION.—In furtherance of the erence in such provisions to the effective sound forest management practices. purposes of the Wilderness Act (16 U.S.C. date of the Wilderness Act (or any similar (b) PURPOSE.—The purpose of this Act is to 1131–1136), lands in the State of California ac- reference) shall be deemed to be a reference provide for the sound management and pro- quired under section 3 of this Act which are to the date of acquisition of such lands under tection of old growth Redwood forest areas within the areas generally depicted on the section 3 of this Act. in Humboldt County, California, and to pre- map referred to in section 3 as the ‘‘Head- (2) To the maximum extent practicable, all serve and enhance habitat for the marbled waters Forest Wilderness (Proposed)’’ shall work to implement the management plan’s murrelet, Northern Spotted owl, native be designated as wilderness and therefore as Restoration Measures shall be performed by salmon stocks, and other old growth forest a component of the National Wilderness unemployed forest and timber workers, un- dependent species, by adding certain lands Preservation System, effective upon acquisi- employed commercial fishermen, or other and water to the Six Rivers National Forest tion under section 3. Such lands shall be unemployed persons whose livelihood de- and by including a portion of such lands in known as the Headwaters Forest Wilderness. pends on fishery and timber resources. the national wilderness preservation system. (b) MAP AND DESCRIPTION.—As soon as (3) In order to facilitate management, the SEC. 3. ADDITION TO SIX RIVERS NATIONAL FOR- practicable after the inclusion of any lands Secretary, acting through the Chief of the EST. in the Headwaters Forest Wilderness, the Forest Service may enter into agreements (a) EXTENSION OF BOUNDARIES.—The exte- Secretary shall file a map and a boundary with the State of California for the manage- rior boundaries of the Six Rivers National description of the area so included with the ment of lands owned by the State or pur- Forest in the State of California are hereby Committee on Natural Resources of the chased with State assistance. extended to include the area comprising ap- House of Representatives and with the Com- SEC. 6. PAYMENTS TO LOCAL GOVERNMENT. proximately 44,000 acres, as generally de- mittee on Energy and Natural Resources of (a) PILT.—Solely for purposes of payments picted on the map entitled ‘‘Six Rivers Na- the United States Senate. The Secretary made pursuant to chapter 69 of title 31 of the tional Forest Addition proposed’’, dated may correct clerical and typographical er- United States Code, all lands added to the June 1993. Such area shall hereinafter in this rors in such boundary description and such Six Rivers National Forest by this Act shall Act be referred to as the Six Rivers National map. Each such map and boundary descrip- be deemed to have been acquired for the pur- Forest Addition. The map shall be on file and tion shall be on file and available for public poses specified in section 6904(a) of such title available for public inspection in the offices inspection in the Office of the Chief of the 31. of the Forest Supervisor, Six Rivers National Forest Service, United States Department of (b) 10-YEAR PAYMENT.—(1) Subject to an- Forest, and in the offices of the Chief of the Agriculture. nual appropriations and the provisions of Forest Service, Department of Agriculture. (c) BUFFER ZONES NOT INTENDED.—The subsection (c), for a period of 10 years after (b) ACQUISITION OF LAND.—(1) The Sec- Congress does not intend that designation of acquisition by the United States of lands retary shall acquire lands or interests in any area as wilderness under this section added to the Six Rivers National Forest by land within the exterior boundaries of the lead to the creation of protective perimeters this Act, the Secretary, with respect to such Six Rivers National Forest Addition by do- or buffer zones around the wilderness area. acquired lands, shall make annual payments

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00122 Fmt 0666 Sfmt 0634 E:\CR\FM\A20DE8.306 pfrm07 PsN: E20PT1 December 20, 2001 CONGRESSIONAL RECORD — Extensions of Remarks E2461 to Humbolt County in the State of California Inc. and Federated Development Corp., for From: Steve Lambert. in an amount equal to the State of California failure to maintain USAT’s net worth. I am Re: Points for July 21, 1994 Conference. Timber Yield Tax revenues payable under enclosing a copy of this memorandum for I. BACKGROUND the California Revenue and Taxation Code your independent review and consideration. A. History of old growth redwood preserva- (sec. 38101 et seq.) in effect as of the date of In summary, the staff has concluded that tion—RNP I; RNP II; State Park System; enactment of this Act that would have been the FDIC has no viable claim against UFG historical role of Pacific Lumber Company paid with respect to such lands if the lands based on an implied private or federal com- (PL) and change in 1986; expert witness had not been acquired by the United States, mon law cause of action for failure to main- ‘‘players’’—WTS, HJW, Fleming, NRM as determined by the Secretary pursuant to tain USAT’s net worth. However, the OTS (Miles; Rynearson). Primary valuation this subsection. may be able to pursue a NWM claim against issues. (2) The Secretary shall determine the UFG and perhaps others for failure to main- B. Current legislation not the first to deal amounts to be paid pursuant to paragraph (1) tain USAT’s net worth. It appears likely with Hurwitz or with Headwaters/PL (sever- of this subsection based on an assessment of that any such administrative proceeding ance tax proposal; elimination of section a variety of factors including, but not lim- must be commenced on or before December 631(a) benefits; refinancing). ited to— 30, 1994, within six years of USAT’s failure. II. HR 2866 (A) timber actually sold in the subject year See 12 U.S.C. § 1818(i)(3). A. Summary of substance: Adds 44,000 acres from comparable commercial forest lands of I would appreciate it if you would review of timberland to the Six Rivers National similar soil type, slope and such determina- this analysis and provide me with your view Forest in Northern California (3,000 acres of tion of appropriate timber harvest levels, and any proposals for further action. You virgin old growth, immediately adjacent (B) By comparable timber size class, age, should be aware that this case has attracted 1,500 acres to protect the 3,000 acres, plus the and quality. public attention because of the involvement rest for wildlife protection.) (C) market conditions, of Charles Hurwitz, and environmental In original bill, acquisition by donation, (D) all applicable Federal, State, and local groups have suggested that possible claims purchase or exchange. In House Natural Re- news and regulations, and against Mr. Hurwitz should be traded for sources Committee—but not by condemna- (E) the goal of sustainable, even-flow har- 44,000 acres of North West timber land owned tion. Authorizes appropriations to effect ac- vest or renewable timber resources. by Pacific Lumber, a subsidiary of Maxxam. quisition and allows acceptance of money (c) CALIFORNIA TIMBER YIELD TAX.—The Chairman Gonzales has inquired about the from the State of California. amount of State of California Timber Yield matter and we have advised him we would Requires FS to prepare a management plan Tax payments paid to Humboldt County in make a decision by this May. After you have for the acquired area, which would at least any year pursuant to the laws of California reviewed these papers, please call me or Pat prohibit timber sales from the 3,000 acres and for timber sold from lands acquired under Bak (736–0664) to discuss the next step and to contain measures to restore the lands pre- this Act shall be deducted from the sums to arrange coordination with our professional viously logged. Headwaters would become a be paid to Humboldt County in that year liability claims. Wilderness Area. under subsection (b). Sincerely, B. Status of Bill: 132 Cosponsors in House (d) 25-PERCENT FUND.—Amounts paid under JACK D. SMITH, (124 Dem.; 8 Republican). subsection (b) with respect to any year shall Deputy General Counsel. Of the Co-sponsors, 34 are on one of the be reduced by any amounts paid under the Committees dealing with FDIC. 13 of 26 Act of May 23, 1908 (16 U.S.C. 500) which are Democrats, including Chrm. Conyers on Gov. attributable to sales from the same lands in RECORD 8 Ops. are Co-sponsors (plus 2 Rep. and 1 inde- that year. Rose Foundation—Conference Call pendent); 16 out of 30 Democrats on Banking, SEC. 7. FOREST STUDY. 10/4/94 plus one Independent, are Co-sponsors. The Secretary shall study the lands within Tom Hecht * * * Hopkins & Sattler. 8 out of 27 Democrats on Energy and Com- the area comprising approximately 13,620 Jeff Williams & FTD, * * * merce are Co-sponsors. (Number don’t add to total, since some are on two Committees.) acres and generally depicted as ‘‘Study 2—3:15 p.m. Area’’ on the map referred to in section 3(a). Referred to two committees (House Agri- The study shall analyze the area’s potential Tom Lipp—Esq. culture and House Natural Resources) in Au- to be added to the Headwaters Forest and Kirk Byrd—Esq.,—and Dave Williams, Esq. gust, 1993. Hearings held in both Natural Re- shall identify the natural resources of the Jull Radner, Esq.—President—Rose Foun- sources Committee (October 12, 1993) and in area including the location of old growth for- dation. House Agriculture Committee (October 13, ests, old growth redwood stands, threatened Rick DeStefano, Esq.,—New Mexico—Real 1993). Reported out of House Natural Resources and endangered species habitat and popu- Estate & Litigator. on May 11, 1994 (amended to add language re- lations including the northern spotted owl Who is doing what on the investigation? lating to swap of Headwaters for surplus fed- marbled murrelet, commercial timber vol- Who makes the decision and how are they eral property.) ume, recreational opportunities, wildlife and made? Bill marked up by House Agriculture Com- fish, watershed management, and the cost of Tom Lippe—statutory mandates. Constructive trust—‘‘there is a lot to be mittee late July 13, 1994. Amended for tech- acquiring the land. Within one year of the explored there—perhaps it could work.’’ nical corrections, to add language relating to date of enactment of this Act, the Secretary Currently three lawsuits pending that are swap of Headwaters for surplus federal prop- shall submit a report with the findings of the protecting the oldest growth. Areas recently erty, to add sunset of acquisition authority— study to the Committees on Natural Re- logged are adjacent to the oldest trees. Cur- 10 years, to clarify that until timberland is sources, and Agriculture of the United rently 18 timber harvest plans that include acquired the owner may have full ‘‘enjoy- States House of Representatives and the very old growth trees. ment’’ of the rights of owning the property.) Committees on Energy and Natural Re- EPIC filed & agreed (10/3) a TKO to stop Ready for action by Rules Committee so sources, and Agriculture, Nutrition, and For- the cutting. that the two versions can be brought to the estry of the United States Senate. 5,000–6,000 acres of virgin old growth left— floor of the House. According to our informa- all in litigation. Some cases are winding tion, Speaker Foley has a desire not to have RECORD 6 down and may be coming back to St. of CA this bill considered this year, and has to cause legal defects and allow logging to ‘‘placed a hold on the bill’’. Kaiser Alu- FEDERAL DEPOSIT INSURANCE continue. In this case—logging may be per- minum, which is a subsidiary of MAXXAM, CORPORATION, mitted to continue in the next few months. INC. (871⁄2%), is the largest employer in Washington, DC, February 4, 1994. EPIC and Rose are running out of resources Speaker Foley’s district. Speaker Foley is CAROLYN B. LIEBERMAN, to continue to fight the logging. getting pressure from both sides (the con- Acting General Counsel, Habitat conservation plan may take 12 servationist organizations on the one side; Office of Thrift Supervision, Washington, DC. months to get Dept. of Interior/Fish and local constituents on the other). Speaker Re: United Savings Association of Texas Wildlife Service to residual growth still very Foley has long enjoyed the support of the DEAR MS. LIEBERMAN: On September 2, 1992 much at risk. conservationist community and has a I briefed Tim Ryan, Harris Weinstein and I Kathy Lacy—Asst. to Feinstein—can tell ‘‘tougher than normal’’ race this fall. How- believe Dwight Smith regarding possible us more about Headwater legislation. ever, he currently is on the ‘‘outs’’ with the claims stemming from the failure of United We will not discuss theories and hypothical national leadership of some conservationist Savings Association of Texas (USAT). In strategies with them. organizations because he recently refused to conjunction with our investigation of profes- Any published criteria for the FDIC’s all a conservationist-supported amendment sional liability claims arising out of that Board’s deliberation and ultimate decision on the Foreign Operations spending bill for failure, our staff has reviewed potential on how to proceed? No other * * * rec- FY 1995. Our information is that until claims against United Financial Group, Inc. ommendations of FDIC staff. Speaker Foley acts, no ‘‘rule’’ will be forth- (‘‘UFG’’), USAT’s first tier holding company, coming from the Rules Committee. for failure to maintain USAT’s net worth. No companion bill in the Senate. Some in- Our staff also reviewed the possible liability MEMORANDUM dication that California Senators not sup- of MCO Holdings and its successor, Maxxam, To: File. portive.

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00123 Fmt 0666 Sfmt 0634 E:\CR\FM\A20DE8.309 pfrm07 PsN: E20PT1 E2462 CONGRESSIONAL RECORD — Extensions of Remarks December 20, 2001 III. S. 2285 owned subsidiary. Hurwitz the Chairman, Corp., defendant holding company was held A. This bill was introduced on July 14, 1994 President and CEO of MAXXAM, Inc. Direc- liable for the loan made to its now-insolvent by Senator Boxer of California. It is similar, tors include: Hurwitz, S.D. Rosenberg, E.G. subsidiary, despite the fact that defendant but not identical to the original H.R. 2866. Levin, and R.J. Crinkshank. was not a guarantor, there were other guar- B. The bill was referred to three Commit- C. Summary of history makes no mention antors who settled with the bank, and the tees (Energy, Environment, and Agri- of PL acquisition. Does mention acquisition subsidy was not insolvent at the time of the culture). No hearings have yet been sched- of 1,104,098 shares of common stock of United loan. Liability was based on defendant’s ac- uled. Financial Group, Inc. during 1982 and 1983. tual control of the proceeds of the loan to the subsidiary which interfered with the IV. MAJOR ISSUES sub’s ability to repay. It is also clear from MEMORANDUM A. Money. FS appraisal (by Jim Fleming, the opinion that the Fifth Circuit would based on HJW volumes) of the 4,500 acres is To: Jill Ratner, The Rose Foundation. have affirmed liability of the individual de- $500 million. Valuation data presented by From: Richard De Stefano. fendant Lloyd D. Brinkman if he had been Natural Resource Management Corporation Date: October 1, 1994. held liable below, but the issue of individual (in response to inquiry from Congressman Re: FDIC Claims Against MAXXAM And shareholder liability was not before the Hansen) would peg it over $600 million for Hurwitz: Federal cases applying breach Court. same 4,500 acres. Funding through normal of fiduciary duty and constructie trust Applying Illinois law, the Seventh Circuit source (Land and Water Conservation Fund) principles. upheld a constructive trust established by a seemingly not ‘‘doable’’. Ideas surfaced re- QUESTION PRESENTED state court. In Re Teltroncis, 649 F.2d 1236 (7th cently—pay some cash, get some from State Assuming MAXXAM and Hurwitz are sub- Cir. 1981), was a federal action by Debtor’s of California, use some of the value to pay ject to liability under California or Texas bankruptcy trustee against the state court off ‘‘debt’’ to FDIC, pay in part with ‘‘chits’’ law for breach of fiduciary duty to USAT’s receiver. The Debtor’s principal had fraudu- for excess government assets (like military creditors, and assuming state law authorizes lently advertised watches for sale, collecting bases, timber), pay in part by exchanges for the remedy of constructive trust, do federal about $1.7 million in prepaid orders with no other timberland. court decisions support the imposition by a intent to deliver the goods, then absconding B. Valuation Issues—many. Include market federal court of a constructive trust over PL with about $1.3 million to parts unknown. change (old growth redwood prices soaring— for the benefit of FDIC? There was about $800,000 in the Debtor’s ac- up at least 15% since Fleming appraisal); count which the Receiver seized per the state lack of true comparable sales (no old growth CONCLUSION court order for the benefit of the defrauded redwood sold ‘‘on the stump’’; effect of regula- There is overwhelming authority for impo- purchasers. The bankruptcy trustee sought tions (Cal. Bd. of Forestry; Endangered Species sition of constructive trust by federal court, in federal court to make those funds part of Act—marbled murrelets) on amount of ‘‘loggable with dozens of new decisions every few years the estate for all creditors. Held, the funds timber’’. Normal issues relating to volume, in complete harmony with the state court were not part of the estate but were in a con- quality. Right now seemingly no ‘‘discount’’ cases discussed in earlier memoranda. In structive trust for the purchasers. issue, since FS appraisal included no ‘‘dis- fact, while states court constructive trust On the specific question of wrongfully ob- count for size/volume’’. cases tend to arise in traditional state law tained corporate stock as the res of a con- C. No Condemnation Authority—Bill requires domains, such as family law, decedents’ es- structive, see Matter of First Georgia Financial a ‘‘willing seller’’, and PL not interested in tate and real property title disputes, the fed- Corp., 120 B.R. 239 (Bkrtcy M.D.GA. 1980). selling more than 4,500 acres, although one eral cases cover the spectrum of complicated There the Court endorsed the principle of the account puts the acreage at 7,000 acres. PL commercial matters and are factually closer constructive trust remedy but refused to would not allow Fleming on more than 4,500 to the subject claims. A federal court will apply it to the Debtor on the facts. Claimant acres. Seemingly interested in exploring sale not hesitate to reach MAXXAM and Hurwitz, was the mother of the Debtor’s sole prin- at fair market value of the 4,500 acres for if their liability is established under state cipal, who had advanced funds to Debtor cash and other creative compensation. law; will not hesitate to unwind a complex which used them to acquire stock. Held, D. FDIC—PL public position—there is no series of transactions such as the quid pro Debtor’s taking funds from the claimant was tie between Hurwitz/FDIC matter and PL quo described in the statement of facts; and not fraudulent but was a loan from mother. Headwaters. The idea of a ‘‘debt-for-nature’’ will not hesitate to reach PL and its assets (Here the Court applied Georgia law on the swap is ‘‘ludicrous’’, according to PL. David as the fruit of MAXXAM’s and Hurwitz’s fraud question, but in Bankruptcy cases the Barr of the FDIC quoted as down-playing the wrongful conduct. remedy of constructive trust is specifically viability of the plan—‘‘How do we turn those DISCUSSION authorized by statute. 11 U.S.C.A. § 550.) See trees into money to distribute to all those also, Voest-Alpine Trading USA Corp. v. Van- 1. Whether applying state law or con- creditors.’’ H&S role talked about in May 15, tage Steel Corp., 919 F. 2d 206 (3d Cir. 1990), struing federal statutes and regulations, the 1994 article in the Houston Chronicle. discussed below, which imposed a construc- Federal Court do not hesitate to impose con- E. Politics—Hamburg in a ‘‘Marginal seat’’. tive trust over corporate stock. structive trust as remedies for breach of fi- Switches back and forth from Democrat to It is clear that federal courts do not re- duciary duty, fraud, or unjust enrichment. Republican. Recent Democratic primary pit- quire a showing of fraud to justify imposi- For example, the Ninth Circuit applied Cali- ted Hamburg against Bosco (former Demo- tion of a constructive trust, but unjust en- fornia law in the diversity case Lund v. cratic congressman from same district on a richment is sufficient. Bush v. Taylor, 893 Albrecht, 936 F.2d 419 (9th Cir. 1991), to impose $15,000/month legal retainer from PL). Ham- F.2d 962 (8th Cir. 1990); U.S. v. Pegg, 782 F.2d a constructive trust on the excess proceeds burg won, but faces stiff Republican opposi- 1498 (9th Cir. 1986). of sale of a partnership asset. The partners tion in November from another former hold- Individuals controlling corporations are had agreed to dissolve their partnership, and er of this seat. Major issue will be ‘‘jobs vs. frequently held liable to the corporation’s had agreed on values and disposition of all murrelets’’. Seemingly lack of support on creditors in federal courts. Both American assets. While the unwinding of the partner- Senate side to do anything now. Last year a Metal Forming Corp. v. Pittman, 135 B.R. 782 ship was pending, one partner received an state ‘‘environmental bond referendum’’ de- (D. Md. 1992) and In Re American Motor Club, offer on an asset which was substantially feated. New one to be on ballot in near fu- Inc. (Bkrtcy E.D.N.Y. 1990) involved con- higher than the agreed amount, and which ture. Questionable support from Administra- structive trusts over property wrongly ac- he did not disclose to the plaintiff, but kept tion (officially against the current legisla- quired for the individual account of control- the secret profit for himself. The Lund Court tion because of money, but in favor of the ling persons of corporations, in breach of the clearly held that even a former partner has goal of preserving the trees and willing to fiduciary duties of the individuals to acquire fiduciary obligations, and held that a con- work to see what can be done.) the assets of corporations’ accounts, the structive trust is the appropriate remedy for Normal conservationist interest group sup- ‘‘corporate opportunity’’ doctrine. breach of those obligations, rejecting the de- port for the legislation, except that Save the Similarly, a constructive trust will be the fendant’s argument that damages were ade- Redwoods League seems to be opposed. Local remedy where an employee acquires property quate. See also U.S. v. Pegg, 782 F.2d 1986, up- government/politician opposition because of with funds embezzled from his employer. holding a constructive trust remedy for effect on jobs/tax base. MDO Development Corp. v. Kelly, 726 F. Supp. wrongful acquisition or detention of prop- 79 (S.D.N.Y. 1989). IV. QUESTIONS erty belonging to another. 2. Federal Courts will treat multiple, re- A. Source of stated Congressional expecta- The Fifth Circuit is also willing to impose lated transactions as a single transaction, tions regarding any lawsuit involving constructive trust in appropriate cases. The will pierce corporate veils, and will regard Hurwitz and USAT and/or United Financial Court applied Texas law in Matter of Carolin the substance of transactions over their Group. Paxson Advertising, Inc., 938 F.2d 595 (5th Cir. form, where equity so requires, in order to B. Ownership issues—According to Moody’s, 1991), and Matter of Monnig’s Dept. Stores, impose breach of fiduciary liability and the end of 1992 MAXXAM ownership shows Inc., 929 F.2d 197 (5th Cir. 1991). The Fifth Cir- remedy of constructive trust on controlling Hurwitz with 59.9% voting control, with cuit has also clearly embraced fiduciary li- persons who wrongfully benefit from com- 31.4% of common stock owned by him per- ability principles as applied to a parent cor- plex, inequitable transactions. sonally. The Pacific Lumber Company poration liability for obligations of sub- In Voest-Alpine Trading USA Corp. v. Van- (owner of Headwaters) shown as a wholly- sidiary. In Gibraltar Savings v. L.D. Brinkman tage Steel Corp., 919 F. 2d 206 (3d Cir. 1990), the

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00124 Fmt 0666 Sfmt 0634 E:\CR\FM\A20DE8.312 pfrm07 PsN: E20PT1 December 20, 2001 CONGRESSIONAL RECORD — Extensions of Remarks E2463 individual defendants were principal share- ity was limited to the amount of benefits re- well over 25% when the Drexel stock is added holders of an insolvent corporation (‘‘XYZ’’) ceived in any case.) to the MAXXAM/Federated stock), of which plaintiff was an unsecured creditor. The primary issue was the District Court’s MAXXAM nonetheless did not hold USAT These controlling shareholders induced a se- treatment of all these transactions as a sin- stock directly. However, it appears clear cured creditor to foreclose on substantially gle fraudulent conveyance. In affirming, the from our review of the general corporate all XYZ’s assets. Through several complex Tabor Realty Court faced for the first time, case law that so long as MAXXAM (or its financings involving the same foreclosing and squarely rejected, the defense contention predecessor, MCOH) exercised de facto con- creditor, the individuals formed a new cor- that LBO’s were too big, too complex, and trol over the savings and loan it will be re- poration, defendant Vantage Steel, which too important to big-time corporate finance, garded as having the same duties and obliga- purchased the assets, and opened for busi- ever to be analyzed under fraudulent convey- tions as would be imposed on a controlling ness, in the same business as XYZ, and with ance law. Although a damages case not in- shareholder of the savings and loan itself. the individuals in sustantially the same volving a constructive trust, Tabor Realty is If there is law specific to the savings and roles. The main issue was the applicability of important because it extended traditional loan context that contradicts this general Pennsylvania’s Fraudulent Conveyance stat- equitable principles to very complicated, principle, we would be very greatful if you ute (Pennsylvania Uniform Fraudulent Convey- modern financial transactions, and rejected could direct us toward it, if it is possible for ance Act, 39 Pa. Stat. §§ 354–357), which gen- the arrogant view that some transactions you to do so without compromising any con- erally prohibits transfers of assets or liens are so big, complicated, and important that fidentiality concerns. on assets either (1) with intent to defraud, or they are beyond the reach of equity. The Once again, thank you for your time and (2) for less than fair consideration and which Court’s reasoning applies not only to LBO attention. Please let me know if we can be of renders the transferor insolvent. Defendant transactions, but to their financial cousins service on this matter in any way. I will look argued that the statute did not apply to a se- engineered by Milken and Drexel. forward to hearing from you. ries of transactions where each step was law- It appears beyond doubt that federal courts Sincerely, ful. The Court held that a group of trans- will apply state law breach of fiduciary duty JILL RATNER, actions will be analyzed as a single trans- and unjust enrichment principles, will cut ROSE FOUNDATION FOR COMMUNITIES action where equity so requires, and upheld through tiers of related entities and multiple AND THE ENVIRONMENT. a constructive trust on the individual defend- transactions to reach the real controlling ants’ interest in the new corporation, for the persons and others who benefit from wrong- benefit of unsecured creditors of XYZ. THE ROSE FOUNDATION, ful conduct, and will impose constructive October 14, 1994. On the issue of ‘‘collapsing’’ multiple trusts in appropriate cases. transactions for fraudulent conveyance anal- BOB DEHENZEL, ysis, the Voest-Alpine Court relied on the FDIC, Washignton, DC. landmark Third Circuit decision in U.S. v. THE ROSE FOUNDATION DEAR BOB, I am enclosing summaries of re- Tabor Court Realty Corp., 803 F.2d 1288 (3d Cir. October 12, 1994. cent and pending cases affecting the Head- 1986). There the Court unwound a hideously Tom Hecht, waters Forest (as well as a couple of older complicated series of transactions com- Hopkins & Sutter, Counsel for the Federal cases that seemed likely to be of interest). prising a major leveraged buy out (‘‘LBO’’) of Deposit Insurance Corporation, Chicago, These are abstracted from a draft document a financially distressed group of related coal IL. that Jama, a volunteer at the Garberville mining companies (‘‘RAYMOND’’) by its DEAR TOM, I wanted to thank you again for Environmental Public Information Center president, DURKIN, who formed a new buy- arranging the October 4 teleconference with (EPIC) faxed to me on Wednesday. ing company (‘‘GREAT AMERICA’’). The Bod DeHenzel and Jeff Williams. I also want- I hope this information is helpful. Court’s recitation of facts runs for many ed to thank all three of you for taking the Randy Ghent, who is also a volunteer with pages, employing charts to track the rela- time to allow the Rose Foundation’s legal EPIC, is working on a map that will provide tionships and the dollars involved; for this team to present our arguments supporting a sense of what specific areas are directly af- memo, the facts can be greatly condensed; imposition of a constructive trust on Pacific fected by the cases summarized. RAYMOND was privately owned by wealthy Lumber, and supporting a petition for in- Thanks again for your interest and atten- individuals who employed DURKIN as a pro- junctive relief halting or severely limiting tion. fessional manager; the shareholders wanted logging on Pacific Lumber lands during the Sincerely, out, and granted DURKIN an option to pur- litigation of the FDIC’s claims arising out of JILL RATNER, chase all their shares, which option DURKIN the failure of United Savings Associatiation ROSE FOUNDATION FOR COMMUNITIES assigned to GREAT AMERICA; RAYMOND of. AND THE ENVIRONMENT. pledged all its assets, including coal mines In response to your requests for more spe- and substantial other real property, to SE- cific information on current logging within October 14, 1994. CURED LENDER for a loan of about $8.3 mil- the greater Headwaters area, or Headwaters TOM HECHT, lion; RAYMOND used the loan proceeds in Forest Complex: Hopkins & Sutter, Counsel for the Federal part to pay preferred creditors, part as a re- Jama Chaplin, at the Environmental Pub- Deposit Insurance Corporation, Chicago, serve for interest payments, and lent the bal- lic Interest Center (EPIC), in Garberville, IL. ance of about $4 million unsecured to California, has agreed to prepare a list of Dear Tom, I am enclosing summaries of re- GREAT AMERICA; GREAT AMERICA used pending and recently resolved litigation af- cent and pending cases affecting the Head- the money (and additional funds borrowed fecting Headwaters Forest, which she hopes waters Forest (as well as a couple of older against the same assets) to buy all the stock to fax to your office this week. cases that seemed likely to be of interest). of RAYMOND, paying defendant share- Randy Ghent, also of EPIC, is preparing a These are abstracted from a draft document holders about $6 million in cash (plus more map that indicates areas affected by the that Jama, a volunteer at the Garberville debt); SECURED LENDER sold its mort- pending and recently resolved court cases, as Enviornmental Public Information Center gages to PAGNOTTI, who sold them to well as areas that covered by active timber (EPIC) faxed on me on Wednesday. McCLELLAN; management could not turn harvest plans (THPs) or by THPs currently I hope this information is helpful. the operations around, and so defaulted; pending before the California Department of Randy Ghent, who is also a volunteer with McCLELLAN foreclosed and sold the assets Forestry (CDF). EPIC, is working on a map that will provide to a group of related companies (‘‘LOREE’’— The THPs on file with CDF contain some a sense of what specific areas are directly af- a separate company was formed for each information concerning the character of the fected by the cases summarized. major property, to redeem state and local affected forest parcels, including, in at least Thanks again for your interest and atten- property tax liens). When the financial dust some cases, the estimated number of old tion. settled, the former shareholders of RAY- growth trees per acre within the parcels. Sincerely, MOND got a lot of cash, LOREE got the Randy is willing to secure copies of the THPs JILL RATNER, mines, and the non-preferred creditors of that he has in his office. As a non lawyer ROSE FOUNDATION FOR COMMUNITIES RAYMOND got the shaft. (and someone generally opposed to unneces- AND THE ENVIRONMENT. The largest such obligation of RAYMOND sary use of wood products), he would, how- was to the IRS for about $20 million. The ever, like to know whether he should excerpt PENDING CASES U.S. sued everyone involved in each trans- sections related to the character of the par- action and everyone who received any of the cels or send the complete THPs, which he de- MARBLED MURRELET V. PACIFIC LUMBER loan proceeds (including the State of Penn- scribed as ‘‘extremely voluminous’’ to be This federal suit alleges that Pacific Lum- sylvania and two Pennsylvania counties, for copied. Please let me know which you would ber’s (PL’s) logging in Owl Creek Grove con- preferential payments of state employment prefer. stitutes a ‘‘take’’ in violation of the federal taxes and county real property taxes) in sev- /??????????copy missing and state Endangered Species Acts, either by eral related actions which were consolidated of stock in the savings and loan holding significantly disrupting the murrelet’s nor- for trial and appeal. After a 120-day trial, the company, United Financial Group (UFG), mal behavioral patterns or by actually injur- District Court unwound the entire deal. (It is which was the sole shareholder in the sav- ing or killing murrelets. not clear from the opinion whether any de- ings and loan, United Savings Association of Procedure: The suit was filed 4/16/93. It fendants escaped liability or whether liabil- Texas (USAT) (which percentage comes to originally named as additional defendants

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00125 Fmt 0666 Sfmt 0634 E:\CR\FM\A20DE8.315 pfrm07 PsN: E20PT1 E2464 CONGRESSIONAL RECORD — Extensions of Remarks December 20, 2001 the United States Fish and Wildlife Service pact. Further, the BOF has implied that CDF The murrelet was listed by the state as en- (USFWS), Department of Fish and Game has the obligation to determine whether a dangered on 3/12/92, and by the United States (DFG), Bureau of Forestry (BOF), and Cali- THP incorporates feasible mitigations. It Fish and Wildlife Service (USFWS) as fornia Department of Forestry (CDF). On 9/1/ must have information to do so. Therefore, threatened on 10/1/92. Immediately, USFWS 93 the federal district court dismissed the approval of plans without the necessary in- informed PL that the Owl Creek plan, if exe- Environmental Public Information Center’s formation is held to violate both CEQA and cuted, would violate the Endangered Species (EPIC’s) claims against all parties except the Forest Practice Act. Act. PL once again snuck into the grove, on PL. Steve Volker of Sierra Club Legal De- Conclusions by the DFG, the court held, as Thanksgiving weekend of 1992. EPIC ob- fense Fund (SCLDF) is currently appealing to possible effects of timber harvesting on tained an emergency stay from the Appeals this dismissal for EPIC. wildlife must be considered by the BOF be- Court. In March of 1993, PL removed the tim- During discovery, PL was sanctioned by cause possible destruction of old-growth de- ber it had illegally cut in November, netting the Court and ordered to pay EPIC $6,275 for pendent species and their habitat from har- another million. EPIC filed a federal case on withholding information. vesting of old-growth timber can fairly be 4/15/93. Trial was held August 15–24 and September described as significant and adverse. Thus, This case was eventually dismissed due to 6–9, 1994 in San Francisco before Visiting the BOF has an obligation imposed by CEQA the procedural error that EPIC did not con- Judge Louis Bechtle. Witnesses testified to to collect info regarding the presence of en- test the BOF ruling within 90 days. PL’s falsification of murrelet survey data dangered species. The Court also rejected the EPIC Attorneys: Julie McDonald, Joseph and to other material misrepresentations by BOF’s rational that the extensive surveys to Brecher. PL. address wildlife effects were not appropriate EPIC Contacts: Cecelia Lanman, Charles Status: awaiting ruling, anticipated in because of the costs and time commitments Powell. January of 1995, may be sooner. such surveys would impose on forest land- EPIC V. MAXXAM I owners. EPIC Attorneys: Mark Harris, Macon This suit, EPIC’s first against Pacific Cowles, Susan O’Neill, Charles Steven According to the evaluation by the DFG, logging these lands could have a significant Lumber (PL) and its corporate parent, in- Crandall, Brian Gaffney, Steve Wolker volved three THPs proposing to clearcut old- EPIC Contacts: Cecelia Lanman, Charles impact on old-growth dependent species. Be- cause DFG identified a potential significant growth redwood and/or Douglas fir forests. Powell, Josh Kaufman, Jamie Romeo, Laurie Two were in the Headwaters Forest area in Sarachek impact, the Court held that the Registered Professional Forester (RPF) must discuss al- Little South Fork Elk River and Salmon EPIC V. CDF (‘‘SEVEN THP’S’’) ternatives in the THP, suggest mitigations, Creek watersheds, and one at Sulphur Creek EPIC challenged CDF’s approval of seven and explain why feasible alternatives were of the Mattole. Timber Harvest Plans (THPs) in residual old- rejected. The Supreme Court upheld CDF’s The suit resulted in a ruling that the CDF growth areas of PL’s Headwaters Forest requirement that PL provide wildlife surveys had not only ‘‘rubber-stamped’’ the THPs, area. done by recognized wildlife professionals of but had intimidated the Department of Fish Procedure: TRO denied October, 1994. old-growth dependent species in the THP and Game (DFG) and the Regional Water Trial set for October 31. area and in the general vicinity. Quality Control Board staff from making EPIC Attorney: Brian Gaffney. This case involves virgin old-growth red- any comments critical of THPs. This suit re- EPIC Contact: Cecelia Lanman. wood and fir in PL’s Headwaters Forest area, sulted in a DFG policy shift to review some EPIC V. CDF (‘‘ALL SPECIES GROVE’’) on Lawrence Creek and Shaw Creek. old-growth plans more carefully. This involves a 186 acre THP in virgin old- Procedure: THPs 1–88–65HUM and 1–88– Procedure: THP 1–87–240 HUM, 1–87– growth redwood and fir habitat in PL’s Head- 74HUM, involving a total of 325 acres, denied 241HUM, 1–87–230HUM approved May/June by CDF 4/18/88 because wildlife information waters Forest area, at the confluence of Bell 1987. EPIC filed Petition 6/4/87 (Humboldt Ct. provided by PL determined to be inadequate. and Lawrence Creeks. PL refused to conduct #79879, Judge Paterson). Status: final 2–4–88: The BOF overturned CDF’s denial on 6/8/88; site-specific wildlife surveys and refused to THPs inadequate. PL appealed, but then EPIC filed petition 6/1/88 (Humboldt Ct. accept some DFG mitigation. abandoned its appeal. THP 87–230 later resub- #82371, Judge Buffington). TRO denied 6/28; Procedure: THP 1–90–069HUM approved 5/4/ mitted and approved, but EPIC lacked re- Appellate Ct. issued stay 7/1 and alternative 90. EPIC filed Petition 5/4/90, Humboldt Ct. sources to sue. writ 8/15. After trial 10/5/88, judge returned EPIC Attorneys: R. Jay Moller, Tom #90CP0341. Judge Nelson issued a Temporary THPs to BOF for further findings. Trial Lippe, Sharon Duggan, Thomas Petersen. Restraining Order 5/9/90. After trial 6/4/92, on Court denied Writ on 10/2/89 bases on BOF’s 6/5/92 Nelson denied injunction and writ, finding of no significant impact to species or holding in essence that the California Envi- habitat. Appeal Court reversed and remanded THE ROSE FOUNDATION, ronmental Quality Act (CEQA) applies much for denial of both THPs on 9/23/91. Petitions October 14, 1994. more narrowly to THPs than the decision in for rehearing filed by Pacific Lumber and TOM HECHT, EPIC’s first successfully litigated case, EPIC EPIC. Appellate Court re-decided case on 3/ Hopkins & Sutter, Counsel for the Federal v. Johnson, allows. Sierra Club v. CDF II 18/92, holding for EPIC. Appellate decision at Deposit Insurance Corporation, Chicago, (Hum. Ct. #90CPO405) was consolidated into 92 DAR 3711. California Supreme Ct. granted IL. this suit. The appeal has been briefed, but no Pacific Lumber’s petition for review. Status: DEAR TOM, I am enclosing summaries of re- date set for oral argument. For some time, final-California Supreme Ct. unanimous de- cent and pending cases affecting the Head- Tom Lippe had believed that Appeals Court cision for EPIC on July 21, 1994. waters Forest (as well as a couple of older was waiting for the Supreme Court to decide EPIC Attorneys: Tom Lippe, Bruce cases that seemed likely to be of interest). Sierra Club v. BOF, which presented very Towner, Richard Jay Moller. These are abstracted from a draft document similar issues. That case was decided July 21, that Jama, a volunteer at the Garberville SELECTED CASES OF HISTORIC INTEREST 1994. Environmental Public Information Center EPIC Attorney: Tom Lippe, R. Jay Moller, EPIC V. PACIFIC LUMBER (OWL II) (EPIC) faxed to me on Wednesday. Kenneth Collins This THP, which is the same THP involved I hope this information is helpful. EPIC Contact: Charles Powell in Marbled Murrelet v. Pacific Lumber, was de- Randy Ghent, who is also a volunteer with RECENTLY DECIDED nied by CDF 1/30/91. CDF acknowledged the EPIC, is working on a map that will provide area as habitat for one of only three remain- a sense of what specific areas are directly af- SIERRA CLUB V. BOARD OF FORESTRY ing California marbled murrelet populations, fected by the cases summarized. On July 21, 1994, the California Supreme and PL refused to provide adequate murrelet Thanks again for your interest and atten- Court unanimously affirmed a Court of Ap- surveys and mitigations. The murrelet was tion. peal judgment, holding that the California at the time a state ‘‘candidate’’ species. On Sincerely, Board of Forestry (BOF) cannot approve a appeal BOF approved THP over objections of JILL RATNER, THP that does not include information re- CDF, DFG, the Attorney General, and their ROSE FOUNDATION FOR COMMUNITIES quested by the CDF regarding the presence own counsel. At the BOF hearing PL was AND THE ENVIRONMENT in the plan area of old-growth dependent spe- given 3 hours to speak, and EPIC’s Cecelia cies. Significantly, the Court held that in ap- Lanman was ejected and threatened with ar- proving THPs the BOF must comply not only rest for speaking slighly over five minutes. MEMO with the provisions of the Forest Practice Procedure: Petition filed 3/26/81, Humboldt From: Steven C. Lambert (SCL). Act, but also with the more extensive re- Ct. #91CO244, alleging violations of CESA. 8/ To: FTH, RWP. quirements of CEQA, thus affirming the 26/91 Ferroggiaro’s Alternave Writ required Date: Wednesday, October 19, 1994 4:42 pm. standard previously imposed by the appellate the Board to reconsider the THP. 3/4/82 BOF Subject: Rose Foundation Letter. court in EPIC v. Johnson. re-approved THP with condition of adequate I received through inter-office mail a copy The Supreme Court ruled that CEQA does murrelet surveys. of an October 12th letter to Tom from Ms. vest CDF with authority to require informa- On a weekend in June 1992, PL began log- Ratner. tion to expressly specified in the Forest ging in Owl Creek without approval of state In her letter, Jill treats several issues— Practice Act rules if the info requested is or federal wildlife agencies, and was stopped only one about which I will comment here— necessary to determine whether a THP will only by EPIC’s legal action. The cut netted her discussion about the timber resource. As have a significant adverse environmental im- over $1,000,000. EPIC obtained TRO in 9/92. I appreciate what she is suggesting (and,

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00126 Fmt 0666 Sfmt 0634 E:\CR\FM\A20DE8.319 pfrm07 PsN: E20PT1 December 20, 2001 CONGRESSIONAL RECORD — Extensions of Remarks E2465 please understand, I’m not certain of the Headwaters Forest Legal Project, focusing Committee, it appears that Huebsch was the context in which this subject came up in on our efforts to urge the FDIC to seek re- primary buyer of Drexel-underwritten secu- your call with her), she suggests use of sat- covery of the property as a remedy for the rities for USAT and other entities, including ellite photography in order to get an ‘‘accu- looting of United Savings Association of MAXXAM, MCOH, UFG, and PL. A factual rate picture of the economic and environ- Texas (‘‘USAT’’). I participated in prepara- inquiry that we assume the FDIC has pur- mental resources at stake’’. tion of the Rose Foundation’s memorandum sued would be the method of allocating spe- I’d like an opportunity to discuss her sug- directed to your colleague, Steve Lambert cific securities purchased by Huebsch among gestion with you before someone adopts her on September 29, 1994 (‘‘Headwaters Memo’’), USAT and the others if, as we infer, Huebsch proposal. If the agency is interested in valu- and in the following conference call. Jim purchased ‘‘centrally’’ and then allocated ation information about the Headwaters and Ratner, Rose Foundation’s president, has the purchases afterwards. These facts tend to other PL holdings, I believe it first should asked me to follow up on certain points by show not only de facto control of USAT by look at valuation work already in the public this letter. MAXXAM/Hurwitz, but would be another domain—which was based at least in part on 1. Federal cases, generally. My research of basis of breach of fiduciary duty liability if an on-the-ground inventory (called a cruise) California state court decisions and Mr. there appeared to be a tendency to allocate of the property being appraised. The recent Camp’s review of Texas state court decisions, riskier issues to USAT. hearings before the House Committee pro- was incorporated in the legal analysis in the 4. Causation-in-fact of FDIC damages. vide some details about an appraisal con- Headwaters Memo. Subsequent research of MAXXAM may argue that the Drexel, under- ducted for the US Forest Service by Jim federal cases strongly supports that analysis. written junk bond investments of USAT Fleming (an MAI from Sacramento, CA)— My client has authorized me to provide you were not the cause-in-fact of its demise, and which I believe used cruise information from with a copy of my federal cases research if so it could be argued that the quid pro quo an Oakland, CA firm (Hammond, Jensen and memo to her dated October 1, 1994, which is was not a cause of the FDIC’s $1.3 billion loss Wallen) in valuing the 3000 acres of virgin enclosed. I conclude there: in bailing out USAT depositors. We respond, redwood and surrounding 1,500 acres of resid- ‘‘There is overwhelming authority for im- first, that Louis Ranieri, who took over ual/cutover/young growth forest in the Head- position of constructive trusts by federal USAT in 1989, described its investment port- waters. Another valuation, as I recall accom- courts. . . . A federal court will not hesitate folio as ‘‘80% bologna’’, according to the New plished at the request of a Congressman, was to reach MAXXAM and Hurwitz, if their li- York Times, February 20, 1989 [Headwaters accomplished by Gary Rynearson of Natural ability is established under state law; will Memo, pp. 23–24]. Resources Management, Inc. it was based on not hesitate to unwind a complex series of Second, we suspect that this defensive ar- similar volume information, but used State transactions such as the quid pro quo de- gument is premised at least in part on ar- Board of Equalization values/MBF for ‘‘aver- scribed in the statement of facts; and will cane accounting principles that a court age standards similar to those being ap- not hesitate to reach PL [short reference to would reject. We lack the information, and praised.’’ Pacific Lumber and other MAXXAM subsidi- probably the expertise, to specifically ana- You may recall that at our meeting in Chi- aries which own and control the Headwaters lyze the quality of the junk bond portfolio at cago I summarized the results of both valu- Forest] and its assets as the fruit of the time of USAT’s failure, but we assume ations for Mr. Williams. If you want me to MAXXAM’S and Hurwitz’s wrongful con- the defense’s argument would include: summarize the already-public information in duct.’’ that some junk bonds which had taken a a memo, I’ll be happy to do so. 2. The quid pro quo. The Rose Foundation huge hit in their market values, were never I have some mis-givings, based on past ex- contends that Charles Hurwitz and in default, and were paying premium re- perience, in trying to determine in any pre- MAXXAM in fact controlled USAT and its turns; arguably, these did not cause any fi- cise way, old growth redwood volumes/values investment decisions, and therefore had fidu- nancial damage to USAT. To the contrary, by use solely of aerial photography such as ciary duties to USAT; and that in breach of we urge that a Court would hold that the she is describing. The only use for such tech- their fiduciary duties, Hurwitz and market risk, even more than the risk of de- nology of which I am aware relates to mas- MAXXAM entered into an illegal agreement fault, is why investment in low grade bonds sive resource studies, where ‘‘preciseness’’ is with Michael Milken and Drexel Burnham is imprudent; and that this loss of asset not felt to be necessary for the purpose of Lambert (‘‘Drexel’’). Pursuant to that illegal value and net worth precipitated in substan- the study. I know of no valuation of redwood agreement, Drexel underwrote a series of tial part the insolvency of USAT, and the based on such photography. junk bond financings on the order of $800 FDIC losses. However, if the agency wishes to ‘‘go that that some junk bonds in default were later million which enabled MAXXAM to acquire route’’, then I could suggest several firms to completely redeemed after their issuers were PL and the Headwaters Forest properties, consider. I suggest, though, given what I taken over or reorganized, and caused no loss and Hurwitz and MAXXAM caused USAT to know about the technology and its use (or to USAT. Same response. invest in over $1 billion worth of very low lack thereof) for valuation purposes, that we If cause-in-fact of USAT’s demise is dis- grade, high risk securities underwritten by shouldn’t be ‘‘recommending’’ that the agen- puted, the issue would be not whether junk Drexel. cy rely on the type of photography Ms. bonds caused direct loss of principal and in- As set forth in the Headwaters Memo, Ratner is proposing. Rather, I would suggest terest to USAT, but whether investment in these contentions are based on information that IF the agency needs more information junk bonds was a substantial factor in the in the public records, most notably the than has already been accomplished for the insolvency of USAT. We believe the affirma- FDIC’s allegations in the federal court ac- Forest Service, then it should consider hir- tive is true and provable. tion, FDIC v. Milken. In the Headwaters ing someone in the timber appraisal profes- Third, we understand that USAT’s port- Memo and this letter we assume that the sion to provide the information/opinions it folio at its collapse included substantial quid pro quo allegations are provable. While needs. One note of caution: There aren’t very Drexel-underwritten ‘‘mortgage backed secu- we believe the information in the public many real qualified firms/individuals left rities’’, arguably these, as distinguished record is sufficient to establish the existence who appraise redwood—because of the dwin- from junk bonds, were the cause-in-fact of of a quid pro quo, at least prima facie, we dling supply in private ownership, their is a USAT’s demise. We urge that it makes no further assume that the FDIC has developed dwindling supply of top-notch redwood cruis- difference what particular investments, evidence beyond that available to us from ers/appraisers. As noted above, 3 firms are made to accommodate Drexel, actually public records. now ‘‘off-the-market’’ —so IF the agency caused the loss. To restate our third re- If the quid pro quo is proven, a Court will sponse parallel to the second, the issue is not really believes it will need independent valu- view investments by USAT as in effect hav- ation information (even if it is ‘‘down the whether quid pro quo investments caused di- ing been directly made in junk bonds issued rect financial loss to USAT, but whether the road’’), it might be well for them to consider by MAXXAM, proceeds of which financed ac- retaining someone now before they, too, are quid pro quo investments were a substantial quisition of PL. In essence the transaction factor in the insolvency of USAT. ‘‘gobbled up’’ by Pacific Lumber Company, constituted an unsecured loan made by 5. Unjust enrichment. FDIC claims arising the Forest Service, the State of California or USAT to MAXXAM for acquiring PL, which out of the USAT bailout are not dependent one of the environmental interest groups. had it been made directly would have been on proof even that the quid pro quo caused Please let me know if you need anything at prohibited by applicable Texas S&L regula- USAT’s insolvency. FDIC is not a mere cred- this time. Thanks. tions (discussed below). Whether these pro- itor of USAT, but now stands in place of hibited transactions damaged USAT or not, USAT. FDIC is not limited to complaining RICHARD DESTEFANO, they unjustly enriched MAXXAM and about specific transactions which damaged ATTORNEY AT LAW, Hurwitz (see discussion below), and form the FDIC’s interest, but may assert any right or Taos, NM, November 18, 1994. basis for a claim to recover the property now claim of USAT. Under Texas and California TOM HECHT, via imposition of a constructive trust. law a fiduciary is liable to his principal for Hopkins & Sutter, Chicago, IL 60602. 3. Role of Ron Huebsch and others. As de- any profits obtained in breach of fiduciary Re: United Savings Association of Texas. tailed in the Headwaters Memo pp. 12–16, duty, even if the principal is not damaged at Your client: Federal Deposit Insurance Cor- Ron Huebsch, Barry Munitz, and other all, and federal courts do not hesitate to en- poration. Hurwitz associates were active as officers, force the state substantive law, nor to im- My Client: The Rose Foundation. directors, and investment advisors for USAT pose constructive trust remedies. DEAR MR. HECHT: I write on behalf of The as well as other MAXXAM affiliates. Based Particularly instructive is First Nat’l Rose Foundation in connection with its on Hurwitz’s testimony before the Dingell Bank of La Marque v. Smith, 436 F. Supp. 824

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00127 Fmt 0666 Sfmt 0634 E:\CR\FM\A20DE8.321 pfrm07 PsN: E20PT1 E2466 CONGRESSIONAL RECORD — Extensions of Remarks December 20, 2001 (S.D. Tex. 1977). There, officers and principal tors and officers (65.3). This would seem to be gal transactions, which destroyed USAT and shareholders of the plaintiff banks were prof- exclusively factual, and provable here. benefitted Hurwitz and MAXXAM; and will iting from insurance commissions and re- 6.4 The regs limit aggregate loans to one hold that Hurwitz and MAXXAM had fidu- bates generated in connection with credit borrower (§ 65.4) to the net worth of the asso- ciary duties to USAT (and therefore to the life insurance which was required by the ciation. If the quid pro quo is viewed as, in FDIC), breached those duties, and were un- bank as a condition for certain loans. Fed- substance, an unsecured loan to MAXXAM justly enriched by their breach. The court eral and state regulators moved administra- for acquisition of PL, compare the amounts will not see Hurwitz and MAXXAM as care- tively to forbid the practice and to require of purchases of Drexel-underwritten securi- ful to walk just this side of liability, but that the commissions and rebates belonged ties in 1985–1987,with the net worth of USAT rather as participants in the looting of a to the banks and not the individuals. The at year-end for those years: Savings and Loan who are now destroying Court specifically found that the banks were Year; Purchases; Net Worth: the Headwaters Forest. We urge the FDIC to not damaged by the practice, yet ruled 1985, $280 million, $163 million take immediate action to restrain logging against the individuals on the grounds of the Headwaters Forest, and to proceed as breach of fiduciary duties to shareholders 1986, 688 million, 249 million 1987, 321 million, 63 million swiftly as possible to recover this irreplace- and depositors and unjust enrichment of the able asset. bank officers and principal shareholders. The 6.5 Loans to affiliated persons are further restricted, requiring the approval of a major- Very truly yours, Court stated: RICHARD DESTEFANO. ‘‘An officer, director or controlling owner ity of disinterested directors at a regular of any business entity has a fiduciary duty board meeting (§ 65.11). to make certain that the economic rewards 6.6 ‘‘One borrower’’ is defined to aggregate RECORD 8A accruing from a corporate opportunity inure loans made to affiliated entities where one [From the Humboldt Beacon, Aug. 26, 1993] hold only 10% of the other’s stock (§ 65.3). to all the owners of the enterprise. This obli- EARTH FIRST! WANTS 98,000; 4,500 ACRES TOPS, gation is even stronger in the case of a bank, 7. Full disclosure. If disclosure to the inde- PL SAYS both because of the fiduciary nature of bank- pendent directors of USAT or United Finan- ing and because of the duty to depositors.’’ cial Group of material facts relating to in- (By Glenn Franco Simmons) 436 F. Supp. at 830, 831 (emphasis added). vestment decisions of USAT, is germane to Contrary to many published and televised The La Marque Court cites several other FDIC’s potential challenge of those deci- reports, Congressman Dan Hamburg’s bill if cases for the proposition that controlling sions, the disclosure must be complete and passed will affect nearly 60,000 acres—not persons of banks have higher fiduciary duties meaningful, and extend not just to the super- 44,000 as Hamburg proposed. than with other businesses. On this issue and ficial facts about a particular investment, Furthermore, Hamburg has proposed an- the unjust-enrichment-without-economic- but to the existence and extent of the quid other 13,500 acres to be set aside as ‘‘study loss issue, the opinion seems very strongly pro quo. It seems almost certain that the acres.’’ to support an action by the FDIC against outside directors of USAT/UFG would con- Earth First! has set its goal at 98,000 acres. controlling persons of USAT. See also, Lund tend that they had no knowledge of the quid ‘‘It’s too much,’’ Bullwinkel said. ‘‘We v. Albrecht, 936 F.2d 459 (9th Cir. [Cal] 1991) pro quo, that they did not know that USAT’s can’t afford to keep setting aside more pro- (constructive trust imposed on secret profit investments in Drexel-underwritten securi- ductive timber land.’’ from sale of a partnership asset); U.S. v. ties were used to finance MAXXAM’s acqui- Hamburg has said that much of the land, if Pegg, 782 F.2d 1498 (9th Cir. [Cal] 1986) (con- sition of PL, and if they had known, would his bill succeeds, would still be open to ‘‘sus- structive trust for wrongful acquisition and have disapproved, and it also seems likely tainable’’ logging. detention of property belonging to the U.S.); that these outside directors would be be- ‘‘When has the federal government been Chien v. Chen 759 S.W.2d, 484 (Tex App. 1988) lieved, and a Court would find that there was able to do any job better than private indus- (secret profit by agent who purchased prop- no adequate disclosure. try?’’ asked Pacific Lumber Co. spokesperson erty through ‘‘front man’’, so seller was un- 8. The endangered Species Act (‘‘ESA’’) and Mary Bullwinkel. aware of buyer’s true identity as seller’s the mission of FDIC. While the FDIC is pri- She said PALCO does not believe the fed- agent and confidant); and Amalgamated marily focused on recovering money’s worth eral government can be a better steward of Clothing and Textile Workers Union v. for its loss in USAT, we urge that all federal the forests than private timber companies. Murdock, 861 F.2d 1406 (9th Cir. 1988) (pension agencies are mandated to consider the im- What Is The Headwaters? officials liable to disgorge from self-dealing pact of their decisions on endangered spe- The freshman congressman’s bill calls for despite lack of damage to plan members). cies. The Headwaters Forest is habitat for the purchase or exchange of 44,000 acres of Outside of Texas and California, the rules several endangered and threatened species, what appears to be mostly PALCO-owned are the same, that unjust enrichment of a fi- as detailed in the Headwaters Memo. land in the Headwaters area about 10 to 15 duciary without actual damage to the prin- The ESA states that ‘‘[I]t is the policy of miles northeast of Fortuna, Bullwinkel said. cipal, is sufficient for liability. Bush v. Tay- Congress that all Federal . . . agencies shall ‘‘The reason they named it the Headwaters lor, 893 F.2d 962 (8th Cir. 1990). We have found seek to conserve endangered species and Forest,’’ Bullwinkel noted, ‘‘is because it’s no authority for the contrary position that shall utilize their authorities in furtherance at the headwaters of two streams: Salmon damages are essential to a breach of fidu- of the purposes of this chapter’’. 16 U.S.C. Creek and the Little South Fork of Elk ciary duty cause of action, or a constructive § 1531(c)(1)(emphasis added), and further re- River.’’ trust remedy, in any unjust enrichment sce- quires that: ‘‘The Headwaters bill came from a very nario. ‘‘. . . all . . . Federal agencies shall, in radical proposal put together by people who 6. Texas Savings and Loan Regulations. In consultation with the Secretary [of the Inte- made the Headwaters an issue,’’ said Earth the Headwaters Memo, we have argued gen- rior], utilize their authorities in furtherance First! spokesperson Alicia Little Tree. erally applicable principles of fiduciary li- of the purposes of this chapter by carrying ‘‘They have been working on it for eight ability and constructive trust relief, shying out programs for the conservation of endan- years: Earth First!, E.P.I.C. and other people away from discussions of ‘‘banking law’’ be- gered . . . or threatened species. . . .’’ (16 who have been concerned about the well- cause of our lack of expertise. We have, how- U.S.C. § 1536(a)(1). being of Headwaters. ever, briefly reviewed Rules of the Texas The ‘‘duty to conserve’’ is an affirmative ‘‘They put together a proposal that calls Savings and Loan Department in effect in obligation of all federal agencies. Pyramid for not only a debt-for-nature swap, but also 1986. 7 Texas Administrative Code, Chapter Lake Paiute Tribe v. U.S. Dept. of the Navy, an employee-stock-option plan for the busi- 65, which seem to provide additional support. 6.1 Regarding the propriety of USAT’s in- 898 F.2d 1410. The ESA further provides that: nesses to restore the Headwaters . . . that vestment in Drexel-underwritten securities, ‘‘. . . each Federal Agency shall . . . insure has been decimated by these years of logging § 65.21, relating to investments in securities, that any action authorized, funded, or car- by Maxxam.’’ permitted only conservative investments ried out by such agency is not likely to jeop- The activist said Hamburg picked up on such as obligations of the U.S., the state of ardize the continued existence of any endan- the original proposal that she called ‘‘vision- Texas, and Texas municipalities, and savings gered . . . or threatened species or result in ary.’’ deposits in institutions insured by your cli- the destruction or adverse modification of ‘‘Hamburg, who is a first-year ent. habitat of such species which is determined congressperson,’’ Little Tree said, ‘‘... did 6.2 Throughout the regs, transactions with . . . to be critical. . . .’’ (16 U.S.C. 1536(a)(2). pretty good to get through the shell of the ‘‘affiliated persons’’ are prohibited outright Accordingly we urge that the FDIC deci- proposal that he got through, which is about or are limited in scope and require full dis- sion makers who will decide whether to seek all we could get in a compromise situation. closure to disinterested directors. See, e.g. recovery of the Headwaters Forest properties ‘‘I think he has done all he can, and I ap- § 65.11 re loans to affiliated persons; and have an affirmative duty to conserve the en- preciate his work. He should be congratu- § 65.19(5) regarding investments in real prop- dangered and threatened species who inhabit lated for all he could do.’’ erty. There is no specific prohibition on in- the forest, and further that the decision not Despite having reservations, she said she vestments in securities issued by affiliated to pursue recovery of the properties, if there didn’t disagree with Hamburg’s proposal. persons, but this is because the list of per- is a reasonable legal basis to do so, may be ‘‘I think a lot more is needed to protect mitted issuers of securities is so limited. in violation of the ESA. the Headwaters,’’ she noted, ‘‘because the 6.3 The regs define ‘‘Affiliated Person’’ to 9. Conclusion. We believe a federal court bill calls for willing sellers. Maxxam clearly include ‘‘controlling person’’, not just direc- will view this case as involving related, ille- stated that (it) is not willing to sell 4,500

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00128 Fmt 0666 Sfmt 0634 E:\CR\FM\A20DE8.323 pfrm07 PsN: E20PT1 December 20, 2001 CONGRESSIONAL RECORD — Extensions of Remarks E2467 acres. Selling Headwaters as a 4,500 acre is- market value’’ for property it deems as need- given to interest expressed by another fed- land doesn’t do anything to protect the an- ing to be government-owned for the public eral agency for which the facilities may be cient-redwood ecosystem. It just creates an good? In such cases, landowners have no transferred without cost (e.g., Army bar- isolated island of old trees; kind of like a choice but to ‘‘sell.’’ racks to FDIC, FDIC interest transfers to museum, except the trees die from the ‘edge ‘‘Ultimately, our goal is to have commu- Hurwitz-entity); (2) second preference is to a effect’ and from being so fragmented. It dries nity control of the acres in which we live and local economic redevelopment entity that out and kills it from the edges in.’’ the areas in which we work—community involves municipal or country agency, which She said examples of the edge effect can be control of the actual work and the actual then can transfer to investors; (3) other cre- found in Humboldt Redwoods State Park in jobs,’’ Little Tree said. ‘‘There shouldn’t be ative options will be considered. The US gov- Southern Humboldt. One example, she said, anyone who has to pick up and leave or be ernment is responsible for environmental is just south of Stafford in the first old- forced out of the area. And that is exactly clean-up. It seems possible to devise a pro- growth redwood groves below Visa Point. what the government is calling for—a short- posal that may interest Hurwitz and get the ‘‘You can just drive past them,’’ Little term mind-set that is going to create a de- cooperation of DOD and local redevelopment Tree said. ‘‘There are blow downs; they are prived timber industry in which they clear- group to work with FDIC and Hurwitz to no longer regenerating.’’ cut all the trees and (implement) even-aged come up with a viable plan, particularly in PALCO has offered to negotiate for the management. Texas where Hurwitz would get significant fair-market-value sale of 4,500 acres of what ‘‘I don’t think the government can offer us positive public exposure. I obtained from it considers the Headwaters. About 3,000 any solutions. The solutions have to come DOD list of all bases that are or will soon be acres of that is old growth and the 1,500-acre from the community itself, from coming to- closed that have facilities for sale or lease. I ‘‘buffer,’’ has a mixture of old- and second- gether and creating the solutions . . . The also am reviewing media articles that cover growth trees, Bullwinkel said. federal government has a lot to do and they successful transfers of such property to in- The trees are primarily redwood, although are not really that concerned about the in- vestors and will keep you informed of any in- there are some Douglas fir. tegrity of our communities.’’ teresting developments. It will not only be PALCO that is affected Bullwinkel said eminent domain is always If you have any questions or concerns, by Hamburg’s proposal. a concern, although she hasn’t heard of a please let me know. ‘‘There are private ranches out there,’’ concrete proposal. J.R. WILLIAMS. Bullwinkel said, ‘‘as well as some Sierra Pa- cific and Simpson land and back in there.’’ EARTH FIRST! GOALS No one seems to know what the boundaries ‘‘I would just like to talk about our goals RECORD 10 of Hamburg’s proposal are. and objectives of this week.’’ Little Tree said Easy thing for staff to do would be send the ‘‘Well, if you call Hamburg’s office, they at a news conference held in Rio Dell on existing draft ATS to the Board and manu- tell you that they really can’t give you a Monday. (See related story on page 1.) ally file suit. Also easy for entire counsel map because they really don’t have one be- ‘‘Many people knew about Headwaters and (remember, they always want to say). That cause they say it ‘is evolving’,’’ Bullwinkel the Headwaters proposal. It’s outrageous is not what we recommend. We recommend said. ‘‘Then you call the Forest Service and that we have to file a bill in Congress to pro- continued work [w/defense counsel—] on (1) they say they have what they believe are the tect the last of the ancient redwoods from a the merit of FDICs claim; (2) a possible cap- boundaries. man who stole them in the first place; that ital maintenance claim by OTS against ‘‘But, do they realize how far the boundary we have to buy them from Hurwitz who stole MAXXAM. of Hamburg’s bill is from the boundary of the them with a junk-bond bailout. Why? (1) Tactically, combining FDIC & Six Rivers National Forest? There is this ‘‘. . . We want Hurwitz in jail. ...We OTS claims—if they all stand scrutiny—is huge gap in there. How are they going to add don’t want to have to reward Hurwitz for more likely to produce a large recovery/the this land to the national forest?’’ stealing the Headwaters by paying him trees than is a piecemeal approach; (2) Both Bullwinkel said that at this point, she does money.’’ sides are learning/developing their case. And not know of any proposals other than the Bullwinkel said that demanding the arrest I believe that counsel for both sides truly Earth First! proposal that calls for 98,000 of Hurwitz is ‘‘ridiculous.’’ wants and needs a better understanding of acres. The second demand is an ‘‘exchange.’’ the case than we currently have. However, she admitted it’s a possibility. ‘‘We think it should be a debt-for-nature 9 mos ago, I was prepared to go with a ‘‘We don’t know; there is always a poten- swap,’’ Little Tree said,’’ whether he ‘‘straddle’’ theory and some other bits and tial that it could grow,’’ she said, ‘‘but that (Hurwitz) should give Headwaters to the pub- pieces, eg, dividend—not to be confused w/the would be devastating. The 44,000 acres is dev- lic and the money that would go to the pur- RICO claim. Villa’s submissions have been astating enough. Let’s talk disaster for chase of it should go to creating stability voluminous & instructive; they have also Humboldt County. How much more land are and jobs in the community as far as restora- been advocacing—some ‘‘facts’’ have been we going to take out of production?’’ tion work and creating some sort of sustain- stretched. EFI PROPOSAL able timber economy in our region.’’ We have paid the case ‘‘back’’ to $200 mil- Little Tree said Earth First! wants more ‘‘When has Earth First! ever brought any lion and we are very closer whether to sue land set aside than is targeted in Congress- jobs to this area?’’ Bullwinkel asked in re- Dr. Kozmetabi at all. man Dan Hamburg’s bill to protect animal sponse. Options: (1) Defer it all, incl. OTS, until and plant species. The other demand is ‘‘an immediate mora- (probably) 4th quarter ’94; (2) Authorize suit, ‘‘A lot of the species that live in the old- torium on logging in the Headwaters wilder- but hold off filing; (3) Authorize and file growth forest are specifically old-growth ness complex area.’’ Little Tree said. around the edges; (4) Sue (or settle) UFG on species,’’ Little Tree said. ‘‘So, if you have Although the boundaries of Hamburg’s pro- tax and cognital maintenance, and option 1 this little island, you get a very, very in-bred posal remain in limbo. Bullwinkel said Earth or 2 on the rest; (5) Option 2 or 3 except defer gene pool and they have no place to spread First! is mistaken if it believes that PALCO on Dr. Kozmetabi. out. is logging in what it considers the Head- If this wasn’t public, the FDIC would do #1. ‘‘Earth First! is calling for a 98,000-acre waters area. Know as much-more as usual, but complex wilderness complex, but not to lock-up the and both sides still learning. I think we Headwaters forest but to create buffers and should do it here—but complaints are likely RECORD 9 to put people back to work in the woods ac- (whatever we do). tually creating healthy ecosystems. To: Jack D. Smith@LEGAL OGC ‘‘. . . We are calling for 98,000 acres to pre- Hdq@Washington serve the Headwaters grove and the four From: Jeffrey Williams@LEGAL 5/19/95 PC—FROM JILL RATHER other old-growth groves that are inside the PLS2@Washington Alan McReynolds—Asst to Sec. of Interior— boundaries of the ‘wilderness’ complex,’’ she Subject: USAT/military bases Jeoff Webb—Sec. Congressional Liaison continued. ‘‘‘This would really mean taking Date: Monday, April 3, 1995 10:14:39 EDT Jay Ziegeler—Asst to * * * it out of the hands of corporate control and Jack: Just a note regarding our brief dis- Jill did fly over Headwaters w/McReynolds putting it in the hands of our community. It cussion on Charles Hurwitz and exploring last week. McReynolds—mostly interested in would make it so our community can decide creative options that may induce a settle- land for land swap. vis-a-vie military/or what will happen in the woods, so we can ment involving the sequoia redwoods in bases for trees. create long-term stability in our commu- FDIC/OTS case: I have reviewed the statutes McReynolds grew up with Hurwitz & their nity.’’ and regulations regarding the closure and re- families still have contact with one another. Bullwinkel said 98,000 acres is too much. vitalization of military bases and other fa- Did base conversion with at DOD. ‘‘Well, that is outrageous—98,000 acres?’’ cilities. The pace of sales has not met the Levan met w/McReynolds, Webb & Ziegeler— she said. ‘‘I think they are proposing that at services’ expectations and they are desparate this past Tuesday. Intention is that discus- this time to make it look more attractive, to to expedite and accommodate interested in- sion will continue. Webb and Ziegeler will make Hamburg’s proposal look more like a vestors. I spoke with a Department of De- consider doing preliminary work to explore compromise.’’ fense official on the general means to ac- whether or not fax notice would work. There What about eminent domain, in which the quire some property and there are numerous is no clear cutting going on outside of Head- government appropriates and pays ‘‘fair- ways. Among them are: (1) preference is waters but injunction was lifted yesterday.

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00129 Fmt 0666 Sfmt 9920 E:\CR\FM\A20DE8.325 pfrm07 PsN: E20PT1 E2468 CONGRESSIONAL RECORD — Extensions of Remarks December 20, 2001 To: Jill Ratner, Rose Foundation. tionary nature of all of the programs, polit- for wildlife conservation purposes under 16 From: Natural Heritage Institute. ical considerations rather than legal and reg- U.S.C. § 667b. Re: Federal Inter-Agency Land Transfer ulatory fineres will be of paramount concern. 5. Land exchange under the Federal Land Mechanisms. With the right amount of political will, how- Policy and Management Act (FLPMA) as Date: April 19, 1995. ever, we believe that Headwaters can be amended by the Federal Land Exchange Fa- cilitation Act (FLEFA). I. INTRODUCTION placed in the hands of an appropriate man- agement entity without public expenditure 6. Disposal of public lands to state and You have asked us to provide you with an or independent legislation. local agencies or non-profit organizations for analysis of the mechanisms under Federal park and recreation purposes under the Rec- II. ANALYSIS law by which the Federal Deposit Insurance reational and Public Purposes Act (RPPA). Corporation (FDIC), as title-holder of the When the FDIC, in its capacity as receiver Each of these procedures provides for prop- Headwaters Forest, may be authorized to for a failed institution, takes title to land erty in the jurisdiction or control of one transfer the forest to a Federal, State, local, held by another in satisfaction of a claim Federal agency to be transferred either to or private entity rather than disposing of it against that person arising from wrongdoing another Federal agency, a state or local through sale. related to the failure of a financial institu- agency, or a private entity without a public Our research has uncovered six Federal tion, the FDIC forwards title to the land to sale and without cash payment. Some re- statutory programs that allow property its regional real estate sales division for dis- quire compensation in the form of lands of under the control of one Federal agency to posal. Funds from the sale go into the appro- approximately equal value (see section E of be transferred to another Federal agency or priate receivership account to cover admin- this memorandum, infra). Thus, working into non-Federal hands. These programs may istrative costs, and then into the general in- from the premise discussed in the above in- be characterized as either: (1) ‘‘exchange’’ surance fund as reimbursement for funds ex- troduction, that FDIC would be authorized programs, under which a Federal land-man- pended in covering the deposits in the failed and willing to exchange Headwaters for land agement agency trades some of its land for institution. of proximately equal value, any of the pro- non-Federal lands of approximately equal There does not appear to be any statutory grams discussed here could provide the stat- value in order to carry out agency objec- or regulatory mechanism in place whereby utory or regulatory basis for such an ex- tives; (2) ‘‘transfer’’ programs, under which the FDIC may dispose of assets acquired in change. property no longer required by one Federal satisfaction of a claim against a director of Case law addressing these statutory land- agency is simply given to another Federal a failed institution without any reimburse- transfer procedures is scant. In general, the agency; or (3) ‘‘disposal’’ programs, under ment whatsoever. Such a transaction may, few cases involving attacks on an agency’s which Federal property no longer required however, be provided for under internal FDIC decision to undertake a specific transfer of by any Federal agency is transferred to a policy guidelines, under the general receiver- land have primarily addressed questions of: state, local, or private entity. ship provisions of the bankruptcy laws, or plaintiffs’ standing to sue the agency (see, It is difficult to determine at this point under the FDIC’s corporate powers, and fur- e.g., Rhode Island Comm. on Energy v. GSA which of these programs, if any, would best ther research on this issue may be war- (II), 397 F.Supp. 41 (1975)); the validity of an agency’s determination that a proposed accomplish the Rose Foundation’s goals. ranted. The FDIC is authorized to settle transfer is in the ‘‘public interest’’ (see, e.g., None of these programs specifically author- claims by accepting property at less than National Coal Ass’n v. Hodel, 617 F.Supp. 584 izes the precise type of transaction in ques- market value, although any such settlement (1985)); the adequacy of transfer-related En- tion here, i.e., the transfer of property ac- must be approved by the FDIC’s board of di- vironmental Impact Statements required quired by the FDIC in settlement of a legal rectors. The FDIC’s primary interest is to restore under the National Environmental Policy claim (as opposed to property acquired via to the general insurance fund any funds ex- Act (NEPA) (see, e.g., Rhode Island Comm on normal appropriations and procurement pro- pended in satisfaction of a failed institu- Energy v. GSA (I), 561 F.2d 397 (1977)); and cedures). Furthermore, there are no par- tion’s depositors’ claims pursuant to a bail- whether the amount of land acquired was ticular sets of circumstances under which out. We may assume, then, that it is imma- larger than necessary to meet the transferee transfers are mandatory under any of these terial to the FDIC whether one particular agency’s needs (see, e.g., U.S. v. 82.46 Acres of programs. At the same time, none of the piece of property is sold in order to obtain Land, etc., 691 F.2d 474 (1982)). statutes or regulations or cases interpreting those funds, as opposed to another piece of Thus, this memorandum focuses on the them specifically prohibits such a trans- property, so long as the funds owned are ac- mechanics of these land-transfer procedures, action. A review of these sources indicates tually recovered. Thus, if a mechanism ex- analyzing the statutes themselves and their that any decision by an agency to enter into ists whereby another Federal agency holding administering regulations. any kind of land-transfer transaction will be, land of approximately equal value may ex- A. Transfer of ‘‘excess’’ property under in fact, almost entirely discretionary, re- change that land for land held by the FDIC FPASA gardless of the program. Thus, the primary for sale, the FDIC might raise no objection The Federal Property and Administrative concern under each program will be to con- so long as the two parcels were in fact worth Services Act (FPASA) (40 U.S.C. § 471 et seq.) vince the appropriate agency that the trans- the same amount. Further research is re- governs the disposition of property under the action in question will serve both the public quired regarding the FDIC’s corporate pow- jurisdiction and control of a Federal agency interest broadly, the agency’s interest spe- ers. that no longer needs it. Under FPASA, when cifically, and relevant political factors. Since there are no internal means by a Federal agency determines that property Of all the programs analyzed, those involv- which the FDIC may transfer assets it has under its control is not required for its needs ing the disposal of surplus Federal or mili- recovered, via constructive trust or other- and the discharge of its responsibilities, such tary real property are probably the best can- wise, to third-party public or private entities property is designated ‘‘excess property.’’ 40 didates, as they do not categorically require without reimbursement, it is necessary to U.S.C. § 472(e). FPASA then imposes a duty reimbursement to the disposing agency. examine the statutory and/or regulatory pro- on all executive agencies to transfer their These programs are more restricted than the cedures under which real property held by a excess property to other Federal agencies others, however, in that only certain agen- Federal agency may be transferred, without whenever practicable, 40 U.S.C. § 483(b), and, cies may receive surplus real property, and cash payment and without independent legis- correspondingly, to obtain excess property then only for certain enumerated purposes. lation, to other Federal agencies or to state from other Federal agencies rather than pur- Under these programs, therefore, an inter- and local bodies. Such procedures may pro- chasing new property. 40 U.S.C. § 483(c); 41 mediary agency such as the Park Service C.F.R. § 101–47.203–2. vide for an exchange of lands between FDIC would initially receive the surplus property and another Federal agency, preferably one i. Procedure for the disposing agency and then later suited for management and control of Head- Under FPASA, once an agency designates a transfer it to the FDIC in exchange for Head- waters, whereby FDIC would take title to particular piece of property as ‘‘excess,’’ the waters with the understanding that Head- property belonging to the other agency in agency must promptly inform the General waters would be managed only for authorized exchange for Headwaters. FDIC would then Services Administration (GSA) of the prop- uses. Thus, the disadvantage to these pro- be free to dispose of the land it received in erty’s availability for transfer. Id. at § 483(b). grams is that they will require an agreement exchange in any manner it sees fit. GSA maintains records of all Federal prop- between three parties instead of two, and Our research has found six statutory proce- erty reported as excess. See 41 C.F.R. § 101– this disadvantage may ultimately be pre- dures that may provide for such an ex- 47.202–3. Also under FPASA, when an agency clusive. In addition, if pending legislation in- change. These procedures are: (or a mixed-ownership Government corpora- troduced by Congressman Rohrabacher (R– 1. Transfer of ‘‘excess’’ property among tion such as the FDIC) determines that it re- CA) is passed, it would prohibit the disposal Federal Agencies under the Federal Property quires additional property to carry out an of surplus military property for exchange and Administrative Services Act (FPASA). authorized program, it must likewise inform purposes, thus precluding the type of trans- 2. Disposal of ‘‘surplus’’ Federal property GSA. Id. at 483(c); 41 C.F.R. § 101–47.203–3. fer we are proposing for Headwaters insofar to State or local governments under FPASA. Upon receiving notice from an agency that as military property is involved. 3. Disposal of surplus military property property is required, GSA will review its It would be imprudent to recommend pur- under the Base Closure and Realignment Act records of property reported excess, and its suing one or more programs over all others of 1990. own inventory of excess property, to ascer- until exploratory meetings with agency rep- 4. Disposal of surplus Federal and military tain whether any such property may be suit- resentatives are concluded. Given the discre- property to state fish and wildlife agencies able for the needs of the requesting agency.

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00130 Fmt 0666 Sfmt 0634 E:\CR\FM\A20DE8.331 pfrm07 PsN: E20PT1 December 20, 2001 CONGRESSIONAL RECORD — Extensions of Remarks E2469 41 C.F.R. § 101–47.203–3 GSA must promptly to FDIC in exchange for Headwaters, if the Defense shall exercise this authority in ac- notify the agency whether any available ex- ‘‘President’’ determines that Headwaters cordance with all the regulations governing cess property is suitable. Id. constitutes ‘‘strategic or critical material.’’ the disposal of surplus property propagated If after receiving such notice an agency de- ii. The ‘‘land for parks’’ program under FPASA, viz, the Federal Property termines that the excess property of another Although the authority provided by Management Regulations, Title 41, Chapter agency will suit its needs, the agency must §§ 484(a) and 485(f) should be thoroughly con- 101 of the Code of Federal Regulations, prepare and submit ‘‘GSA Form 1334, Re- sidered, a subsequent section of FPASA may supra. Id. at Section 2905(b)(2)(A)(i). Thus, under the Act, the Department of quest for Transfer of Excess Real and Re- ultimately prove more useful. FPASA spe- Defense (DoD) is authorized to assign surplus lated Personal Property.’’ 41 C.F.R. § 101– cifically authorizes GSA to assign to the Na- military property to the NPS for disposal to 47.203–7(a). Then, upon determining that the tional Park Service (NPS) for disposal any State and local agencies for public park and requested transfer is ‘‘in the best interest of surplus real property ‘‘as is recommended by recreational use in accordance with the the Government and that the requesting the Secretary of the Interior as needed for Lands to Parks Program. The analysis of agency is the appropriate agency to hold the use as a public park or recreation area.’’ 40 GSA’s activities under the Lands to Parks property’’ (41 C.F.R. § 101–47.203–7(b)), GSA U.S.C. § 484(k)(2) [hereinafter, ‘‘the Lands to Program thus applies equally to DoD’s ac- may execute the transfer so long as the Parks Program’’]. Subject to the disapproval tivities under Section 2905 of the Act, and transfer is consistent with applicable GSA of the GSA, NPS may then ‘‘sell or lease may be incorporated here by reference. policy guidelines. 40 C.F.R. § 483(a)(1); 41 such real property to any State, munici- C.F.R. § 101–47.203–7(d), (e). pality, or political subdivision for public i. Procedure ii. Reimbursement park or recreational use.’’ Id. at The regulations governing the disposal of When a transfer of excess property is ap- § 484(k)(2)(A). surplus military property appear in Title 32 proved, FPASA authorizes GSA, with the ap- ii. Procedure under the Lands to Parks Program of the C.F.R. These regulations provide that in exercising the authority delegated to it by proval of the Director of the Office of Man- The regulations enforcing the Lands to GSA to dispose of surplus property, DoD is to agement and Budget (OMB), to ‘‘prescribe Parks Program provide that whenever GSA follow the same property disposal rules and the extent of reimbursement’’ for the trans- determines property to be surplus, GSA will procedures that the GSA follows, i.e., the fer. 40 U.S.C. § 483(a)(1). Although FPASA al- provide notice by mail to all public agencies Federal Property Management Regulations. lows for transfers without reimbursement in eligible to receive such property that the 42 C.F.R. § 91.7(a)(1). However, the DoD regu- certain situations 41 C.F.R. § 101–47.203–7), re- property has been declared surplus. 41 C.F.R. lations further allow for an ‘‘expedited proc- imbursement at ‘‘fair market value’’ as de- § 101–47.303–2(b). In particular, a copy of this ess’’ under which other DoD entities, other termined by GSA is required when a mixed- notice ‘‘shall be furnished to the proper re- Federal Agencies, and providers of assistance ownership Government Corporation, like the gional or field office of the NPS or the Fish to the homeless may identify military prop- FDIC, is either the transferor or the trans- and Wildlife Service.’’ 41 C.F.R. § 101–47.303– erty they wish to acquire before the base feree agency. 41 C.F.R. § 101–47.203–7(f). 2(d). In the case of real property that ‘‘may closes, and forward requests to DoD. Id. DoD Although neither FPASA nor the Federal be made available for assignment to the . . . will then work with the other DoD Compo- Property Management Regulations specifi- Secretary of the Interior for disposal under nents, Federal Agencies, homeless providers cally provide for reimbursement in-kind in [the Lands to Parks Program],’’ GSA shall and reuse planners early in the closure proc- the form of property of equal value, neither inform the appropriate regional office of the ess, in order to sort out these requests. Id. do they specifically prohibit it. Given the NPS three workdays in advance of the date Congressional intent to enable and facilitate Military Departments must make the no- the notice to be given simultaneously by tices of availability available to Federal land-exchanges under § 484(a), see Section B, NPS to additional interested public bodies of infra, as well as under other programs, how- agencies, local redevelopment authorities, State and local government. 41 C.F.R. § 101– and State and local governments. 32 C.F.R. ever, a colorable argument exists that 47.303–2(e). FPASA should be interpreted as allowing an § 91.7(a)(6). For a six-month period thereafter, The regional NPS office then reviews such the Military Departments shall consult with agency to transfer its excess property to an- notices and informs interested state and other agency and receive property of equal the local redevelopment authority and make local planners and park and recreation offi- appropriate final determinations whether a value in return. Thus, any excess property cials of site availability. Attachment B at p. currently held by a Federal agency author- Federal agency has identified a use for, or 2. Any state or local agency wishing to ac- shall accept transfer of, any portion of the ized to manage Headwaters should be quire the property must notify NPS of their conveyable to FDIC under 40 U.S.C. § 483 in property. 32 C.F.R. § (a)(7). If no Federal interest. Id. NPS will then work with the Agency requests the property during this pe- exchange for Headwaters, if the conveyed agency to develop an application for transfer property is of approximately equal value. riod, the property is be declared surplus. Id. of the land and forward the application to This screening or DoD’s excess real prop- B. Disposal of ‘‘surplus’’ property under GSA, recommending its approval. Id. erty to ascertain whether it matches prop- FPASA GSA will advise NPS of any additional in- erty requests from other Federal Agencies FPASA defines ‘‘surplus’’ property as ‘‘any formation required to process the state or must be completed within 6 months of the excess property not required for the needs local agency’s application to procure the date of approval of the 1995 closures. 32 and the discharge of responsibilities of all property. 41 C.F.R. § 101–47.303–2(h). Upon re- C.F.R. § (a)(4)(ii). This timeframe is meant to Federal agencies, as determined by [GSA&].’’ ceipt of the complete application for the afford Federal Agencies sufficient time to as- 40 U.S.C. § 472(g). GSA will generally declare property, GSA will consider and act upon it, sess their needs, submit initial expressions of surplus any excess property reported to it either granting or denying the transfer. 41 interest to the Department of Defense, and pursuant to 40 U.S.C. § 483(b), supra, if it de- C.F.R. § 101–47.303–2(i). apply for the property. 32 C.F.R. § (a)(5). Dur- termines, after reviewing other agencies’ re- iii. Reimbursement ing this period, Agencies sponsoring public quests for property pursuant to 41 C.F.R. In fixing the sale or lease value of property benefit conveyances, such as NPS, should § 101–47.203–3, supra, that the property does so disposed, the Secretary of the Interior also consider the suitability for such pur- not match the needs of any other agency. 41 must take into consideration ‘‘any benefit poses. Id. In the Notice of availability, the C.F.R. § 101–47.204–1. In other words, ‘‘excess’’ which has accrued or may accrue to the Military Departments must provide other property is property no longer required by United States from the use of such property Federal agencies with as full and complete the agency holding it, while ‘‘surplus’’ prop- by any such State, political subdivision, in- information as practicable regarding the erty is property not required by any Federal strumentality, or municipality.’’ 40 U.S.C. subject property. Id.; see 41 C.F.R. § 101– agency. § 484(k)(2)(B). This subsection is interpreted 47.303–2(b). Requests of transfers of property i. GSA’s disposal authority in general as permitting the Secretary of the Interior submitted by other Federal Agencies will FPASA authorizes GSA to dispose of sur- to convey such property to eligible State or normally be accommodated. Id. Decisions on plus Federal property by sale, exchange, local agencies without consideration or re- the transfer of property to other Federal lease, permit, or transfer for cash, credit, or imbursement. Agencies shall be made by the Military De- other property, upon such terms and condi- c. Disposal of surplus military property partment concerned in consultation with the tions as it deems proper. Id. at § 484(a), (c). The Defense Authorization Amendments local redevelopment authority. Id. FPASA further provides that ‘‘[a]ny execu- and Base Closure and Realignment Act of II. Limitations tive agency entitled to receive cash under 1990 (part A of title XXIX of Public Law 101– The DoD’s authority to transfer excess or any contract covering the lease, sale or dis- 510; codified as 10 U.S.C. § 2687 note) provides surplus property to other Federal agencies position of surplus property may in its dis- that the Administrator of General Services may, however, be limited by the Act’s provi- cretion accept, in lieu of cash, any property shall delegate to the Secretary of Defense, sion authorizing the DoD to transfer real determined by the President to be strategic with respect to excess and surplus real prop- property located at a closed military instal- or critical material at the prevailing market erty and facilities located at a military in- lation to the local ‘‘redevelopment author- price thereof at the time the cash payment stallation closed or realigned, ‘‘the authority ity’’ organized to ameliorate the negative or payments became or become due.’’ 40 of the [GSA] to dispose of surplus property economic impacts of the base closure. 10 U.S.C. § 485(f). These two sections may there- under [the Lands to Parks Program].’’ 10 U.S.C. § 2687 note Sec. 204(a)(4)(A). In addi- fore provide sufficient authority for GSA to U.S.C. § 2687 note Section 2905(b)(1)(B). The tion, the transfer must be without consider- transfer another agency’s surplus property Act further provides that the Secretary of ation ‘‘in the case of any installation located

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00131 Fmt 0666 Sfmt 0634 E:\CR\FM\A20DE8.336 pfrm07 PsN: E20PT1 E2470 CONGRESSIONAL RECORD — Extensions of Remarks December 20, 2001 in a rural area whose closure under this title to the authority to dispose of surplus prop- tem, or Wilderness preservation system, the will have a substantial adverse impact (as erty under the Lands to Parks Program, land will immediately become part of that determined by the Secretary) on the econ- ‘‘the authority of [GSA] to determine the unit without further action by the Sec- omy in the communities in the vicinity of availability of excess or surplus real prop- retary. 40 U.S.C. 1716(c). the installation and on the prospect for the erty for wildlife conservation purposes in ac- ii. Procedure economic recovery of such communities cordance with [16 U.S.C. § 667b].’’ 10 U.S.C. Land exchanges under FLPMA are admin- from such closure.’’ Id., at Sec. § 2687 note Section 7905(b)(1)(B). istered through guidelines contained in Title The military departments are authorized 204(a)(4)(B)(ii)(A). This may hamper any ef- 43, Part 2200 of the C.F.R. At the outset, it is to convey property that can be utilized for fort to transfer surplus military property to important to note that FLPMA land ex- wildlife conservation purposes to the state an agency able to exchange it for Head- changes are entirely within BLM’s discre- fish and wildlife agency without reimburse- waters. tion, and BLM is free to terminate an ex- A potentially greater limitation is a rider ment. 32 C.F.R. § 644,439(a). If property is con- change proposal at any time unless the par- bill (H.R. 1265) introduced by Congressman sidered by the District Engineer to valuable ties have entered into a legally-binding Rohrabacher (R–CA) to amend the surplus for wildlife conservation purposes, or if in- agreement. 43 C.F.R. 2200.0–6(a). Also, a land property disposal provisions of the Defense terest has been shown in acquiring the prop- exchange may take place only after the ap- Authorization Amendments and Base Clo- erty for that purpose, notice of availability propriate BLM officer determines that it will sure Realignment Act. The bill would pro- should be given to the agency administering ‘‘well serve’’ the public interest. 43 C.F.R. hibit DoD from transferring surplus military state wildlife resources and to the Federal 2200.0–6(b). In making this determination, property to other Federal agencies unless Fish and Wildlife Service if the property has BLM must give full consideration to ‘‘the op- the agency agrees not to use the property in particular value in carrying out the national portunity to achieve better management of any property exchange transaction. The bill migratory bird program. 32 C.F.R. Federal lands, to meet the needs of State and is currently pending before the National Se- § 644.429(b). Any state desiring to make appli- local residents and their economies, and to curity Committee, and NHI will continue to cation for property for wildlife conservation secure important objectives, including but track its progress. will be furnished copies of Application For not limited to: protection of fish and wildlife iii. Return of lands transferred ‘‘temporarily’’ to Real property For the Conservation of Wild- habitats, cultural resources, watersheds, wil- the Department of Defense by the Department life with accompanying instructions for derness and aesthetic values.’’ BLM must of the Interior preparation. In evaluating the application, also find that the resource values and the the responsible District Engineer will re- Unrelated to DOD’s general authority to public objectives that the Federal lands or quest review of the application by the Re- dispose of surplus military property, a fur- interests to be conveyed may serve if re- gional Office of the Fish and Wildlife Serv- ther section of this regulation provides that tained are not more than the resource values ice, Department of the Interior, and will ob- any lands that have been transferred from of the non-Federal lands and the public ob- tain that Service’s recommendation as to the Department of the Interior to a Military jectives they could serve if acquired. 43 the value of the property for wildlife con- Department for the latter’s temporary use C.F.R. § 2200.0–6(b)(1). Once BLM accepts title servation purposes. 32 C.F.R. § 644.429(c) ‘‘are to be returned to the Secretary of the to the non-Federal lands, the lands become Interior’’ if they are still suitable for the E. BLM Land Exchanges under FLPMA and remain public lands, subject to BLM programs of the Secretary of the Interior. 32 The Federal Land Policy and Management management. 43 U.S.C. § 1715(c). C.F.R. § 91.7(a)(9)(i). The Military Depart- Act of 1976 (FLPMA) as amended by the Fed- Exchanges may be proposed by BLM itself, ment concerned will notify the Secretary of eral Land Exchange Facilitation Act or by ‘‘any person, State, or local govern- Interior, normally through the Bureau of (FLEFA), 43 U.S.C. § 1701 et seq., authorizes ment.’’ 43 C.F.R. § 2201.1. Initial exchange Land Management (BLM), when withdrawn the Secretary of the Interior to exchange proposals are directed to the authorized offi- public domain lands are included within an federally-held public lands for non-federal cer responsible for the management of Fed- installation to be closed. 32 C.F.R. lands if the Secretary of the interior deter- eral lands involved in an exchange. Gen- § 91.7(a)(9)(ii). BLM will then screen these mines that the public interest would best be erally, the parties to an exchange bear their lands within the Department of Interior to served by the exchange. 43 U.S.C. § 1716(a). In own costs. 43 C.F.R. § 2201.1–3. However, if the determine if these lands are suitable for re- making this determination, the Secretary is BLM finds it to be in the public interest, it turn to the Department of Interior. 32 C.F.R. required to consider Federal, state and local may agree to bear the other party’s costs. Id. § 91.7(a)(9)(iii). Thus, it should be ascertained needs for ‘‘lands for the economy, commu- A flow-chart describing the entire BLM land whether BLM has transferred any land in nity expansion, recreation, food, minerals, exchange process appears as Attachment A California to DoD on a temporary basis. If and fish and wildlife.’’ Id. The Bureau of to this memorandum. so, the decision to return the property to Land Management (BLM) exercises the Sec- iii. Three-party land exchanges BLM will be nondiscretionary, thus elimi- retary of the Interior’s authority under the BLM regularly organizes what are called nating the need to persuade DoD to dispose land exchange provisions of FLPMA. 43 ‘‘three-party land exchanges’’ of Federal for of the property in a particular manner. After C.F.R. § 2200.0–4. non-Federal lands. Under a three-party ex- BLM retakes control of the property, it i. The ‘‘equal value’’ requirement and would be a question of orchestrating a land- change, the non-Federal land in question is ‘‘assembled land exchanges’’ sold initially to a third-party, usually a pri- exchange under FLPMA (see section E., FLPMA requires that any lands exchanged infra.) Accordingly, NHI will attempt to vate land trust, for cash. The third-party under the Act be of equal value, or if they then holds and manages the land pending identify military property in California that are not equal, that the values be equalized is owned by the Secretary of the Interior. BLM’s identification of the parcel or parcels by payment of money to the grantor or BLM of Federal land to be exchanged, a process D. Disposal of surplus Federal and military as circumstances require. 43 U.S.C. § 1716(b). that can take years. Once the Federal lands property to state fish and wildlife agencies This equalization requirement may be are selected, BLM conveys them to the third- for wildlife conservation purposes under 16 waived, however, if BLM and the other party party in exchange for title to the non-Fed- U.S.C. § 667b agree to the waiver, and BLM determines eral lands it holds. The third-party then may Enacted in 1948, 16 U.S.C. § 667b, authorizes that the exchange will be expedited and that sell the lands conveyed to it to recover the GSA to dispose of surplus Federal property, the public interest will be better served cost of the initial purchase. both military and non-military, by transfer- thereby. BLM may not waive cash equali- A narrative description of a three-party ex- ring it to a state agency for wildlife con- zation payments where the amount is more change upheld in the past appears as Attach- servation purposes. Specifically, the statute than 3% of the value of the federal lands ment C to this memorandum. provides that upon request, surplus real being exchanged, or $15,000, whichever is less. iv. Restrictions property under the jurisdiction of a Federal Id. Restrictions on BLM land exchanges under agency which, in the determination of GSA, If the non-Federal land sought to be ac- FLPMA include: (1) a requirement that the may be utilized for wildlife conservation pur- quired is worth substantially more than any Federal and non-Federal lands exchanged lie poses in the state where the property lies, single parcel of Federal land within the state within the same state (43 U.S.C. § 1716(b); 43 may be transferred to the state’s fish and (or vice versa), the parties may enter into an C.F.R. § 2200.0–6(d)); (2) a requirement that an wildlife agency. This differs significantly ‘‘assembled land exchange.’’ An assembled environmental analysis under NEPA be pre- from the program provided by the Lands to land exchange is an agreement under which pared after an agreement to initiate an ex- Parks Program, in that such land may be the parties agree to the consolidation of change is signed (43 C.F.R. § 2200.0–6(h)); and transferred only to a State fish and wildlife multiple parcels of land for purposes of one (3) a requirement of conformity with exist- agency such as the California Department of or more exchange transactions. 43 C.F.R. ing land use plans (43 C.F.R. § 2200.0–g(g)). Fish and Game, and not to a county or mu- § 2200.0–5(f); § 2201.1–1. Thus, several parcels of nicipality. Furthermore, the property may Federal land may be exchanged for a single, F. U.S. Forest Service Land Exchanges be utilized only for wildlife conservation valuable parcel of non-Federal land. Under FLPMA purposes and not for parks or recreation pur- FLPMA also provides that if the non-fed- In addition to authorizing BLM to enter poses. eral land acquired by exchange is situated into land exchanges, FLPMA (43 U.S.C. § 1701 The Defense Authorization Amendments within the boundaries of an existing Na- et seq.) authorizes the Secretary of Agri- and Base Closure and Realignment Act au- tional Park, Forest, Wildlife Refuge System, culture to exchange lands within the Na- thorizes GSA to delegate to DoD, in addition Wild and Scenic Rivers System, Trails Sys- tional Forest System (NFS) for non-Federal

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00132 Fmt 0666 Sfmt 0634 E:\CR\FM\A20DE8.340 pfrm07 PsN: E20PT1 December 20, 2001 CONGRESSIONAL RECORD — Extensions of Remarks E2471 lands upon a determination that the public Realignment Act requiring the return of ways be reached at 736–0648 to discuss this interest will be well served thereby. 43 U.S.C. lands held by the Department of Defense ‘‘on matter further. § 1716(a). The substantive provisions of loan’’ from the Department of the Interior June 15, 1995—Told Wms to advise FBI and FLPMA, including authorizations and limi- may be a favorable option in light of the Rob Russell. tations on authority, apply equally and iden- non-discretionary nature of the initial trans- tically to the Secretary of the Interior for fer. Under this provision, land must be trans- public lands and the Secretary of Agri- ferred to the Department of the Interior, RECORD 13 culture for National Forest lands. Thus, the thus eliminating the need to convince the THE ROSE FOUNDATION analysis of FLPMA contained in Section E., Defense Department to dispose of the prop- FOR COMMUNITIES & THE ENVIRONMENT supra, of this memorandum may be incor- erty, in its discretion, in a particular man- Please deliver, 43 pages including cover, to porated here by reference. ner in its discretion. As stated above, NHI Steve Lambert The Forest Service regulations governing will attempt to identify military property in Please call (510) 658–0702 to report any exchanges appear in Title 36, Part 254 of the California that is owned by the Department problems in transmission C.F.R. These regulations mirror the correl- of the Interior. ative regulations governing BLM land ex- To: Steve Lambert, Hopkins & Sutter changes. The discussion of the latter regula- From: Jill Rainer, Rose Foundation for Com- tions in Section E. applies equally and may RECORD 12 munities and the Environment also be incorporated here by reference. One MEMORANDUM Steve: key difference in the exchange procedure, To: Jack D. Smith, Deputy General Counsel Thank you for the opportunity to share however, is that NFS land exchanges may in- From: Jeffrey Ross Williams, Counsel, PLS our analysis of the case for imposition of a volve, in additional to outright land ex- Date: 15 June 1995 constructive trust on the assets of Pacific changes, ‘‘land-for-timber’’ (non-Federal Subj: United Savings Association of Texas, Lumber in connection with the FDIC’s land exchanged for the rights to Federal tim- In FDIC Receivership, Investigation of claims against MAXXAM, Inc. We hope the ber), or ‘‘tripartite land-for-timber’’ (non- Charles Hurwitz and Others. following memorandum will provide a useful Federal land exchanged for the rights to Fed- We received a letter (from among the hun- starting point for a full and frank discussion eral timber cut by a third party on behalf of dreds we received in the last 60 days) that of those issues presented. the parties to the exchange). 36 C.F.R. § 254.1. discusses the ‘‘debt-for-nature’’ transaction Most of the lawyers who participated in Initial Forest Service land exchange pro- that various environmental groups have been the preparation of the memo will be avail- posals are directed to the Director of the ap- advocating to resolve the claims involving able for a phone conference at 1:00 p.m., Pa- plicable unit of the NFS. 36 C.F.R. § 254.4. Hurwitz and USAT. It contains a reference cific time, on Tuesday, the 27th. These in- G. The Recreation and Public Purposes Act to the Oklahoma City bombing and a call to clude: The Recreation and Public Purposes Act ‘‘defuse this situation.’’ I want to bring it to Kirk Boyd and Dave Williams, Boyd, (RPPA) (43 U.S.C. § 868 et seq.) authorizes the your attention. Huffman and Williams, (415) 981–5500. Secretary of the Interior to dispose of public As you know, the above-referenced inves- Tom Lippe (counsel for the Environmental lands to a State, county, municipality, or tigation has resulted in attracting the atten- Public Information Center), (415) 495– non-profit organization for any recreational tion of organizations and individuals that 2800. or public purposes. Before the land may be have interests in environmental preserva- Peter Camp, of Camp, Von Kallenbach (206) disposed, however, it must be shown to satis- tion. This has arisen as a result of Charles 689–5613. faction of the Secretary that it is to be used Hurwitz’s acquisition (through affiliates) of I can be reached at the Rose Foundation of- for a definitely proposed project, that the Pacific Lumber, a logging company in Hum- fice, at (510) 658–0702. land is not of national significance, nor more boldt County, California, that owns the last Rick DeStefano, who has recently joined the than is reasonably necessary for its proposed stands of old growth, virgin redwoods. It has team, is unable to attend. use. 43 U.S.C. § 868(a). No more than 25,600 been widely reported that the company has We will be looking forward to talking with acres may be conveyed for recreational pur- been harvesting the virgin redwoods in a des- you and your colleagues. poses in any one State per calendar year. 43 perate attempt to raise cash to pay its and INTRODUCTION U.S.C. § 868(b)(i)(C). its holding company’s, Maxxam, Inc.’s, sub- Conveyances of lands for recreational pur- stantial debt obligations. The MAXXAM Corporation, through its poses shall be made without monetary con- The environmentalists’ issues are centered wholly owned subsidiaries Pacific Lumber sideration, while conveyances for any other on preserving the old growth redwoods Company (Del), Scotia Pacific, and the purpose shall be made at a price fixed by the through a mechanism of persuading Hurwitz Salmon Creek Corporation (Collectively Secretary of the Interior through appraisal to settle the government’s claims involving ‘‘Pacific Lumber’’, or ‘‘PL’’, in this memo- or otherwise, after taking into consideration losses sustained on the USAT failure by, in randum) currently controls and logs an area the purpose for which the lands are to be part, transferring the redwood stands to the known as Headwaters Forest in Humboldt used. 43 C.F.R. § 869–1(a). The Secretary may FDIC or other federal agency responsible for County, California. Headwaters Forest is a not convey lands reserved for National managing such forest lands. FDIC has re- collection of forest lands that contain the Parks, Forests, Wildlife Refuges, or lands ac- ceived thousands of letters urging FDIC to last major unprotected stands of old growth quired for specific purposes. 43 C.F.R. pursue such a transaction. redwood in the world. These stands of an- § 2741.1(a). Potential applicants should con- The environmental movement, like many cient trees, many of which are between 1000 tact the appropriate District Office of BLM others, is not homogeneous and contains ex- and 2000 years old, are remnants of the great ‘‘well in advance of the anticipated submis- treme elements that have resorted to civil virgin redwood forest that once extended sion of an application.’’ 43 U.S.C. § 2741.3(a). disobedience and even criminal conduct to more than 500 miles from its southern tip to Dependent on the magnitude and/or public further their goals. As a result of the recent its northern boundary, blanketing the west- interest associated with the proposed use, tragedy in Oklahoma City, everyone appears ern coastal range from Big Sur to southern various investigations, studies, analyses, more sensitive to the possibility that people Oregon. public meetings and negotiations may be re- can and do resort to desperate, depraved The Rose Foundation contends that quired of the applicant prior to the submis- criminal acts. Accordingly, we take any ref- MAXXAM’s control of Pacific Lumber and sion of the application. 43 U.S.C. § 2741.3(c). erences to such conduct, even ones that ap- the Headwaters Forest properties is unlawful ‘‘Omitted lands’’ and unsurveyed islands pear innocent, more seriously. and was wrongfully obtained, as a result of a may be conveyed to States and their local Among the hundreds of letters we received prohibited transaction which breached of political subdivisions under the Act as well. last month is one that contains a reference MAXXAM’s fiduciary duty as a controlling 43 C.F.R. § 2742.1 to the Oklahoma City bombing that I want shareholder of the thrift, United Savings As- III. CONCLUSION to bring to your attention. The author does sociation of Texas (USAT), and which led to As stated in the introduction, it is difficult not make any directly threatening state- USAT’s 1988 failure and bailout by the Fed- to ascertain which of these programs, if any, ments but appears, at least to me, to have eral Deposit Insurance Corporation (FDIC) would be best suited to the type of exchange personal knowledge of the deep passions and which cost taxpayers more than $1.3 billion. the Rose Foundation seeks to orchestrate. divisions that various environmental activ- We believe that the FDIC, as the party in- Given the highly discretionary nature of all ists harbor on these preservation issues. This jured by the alleged breaches of fiduciary the programs, ‘‘scoping’’ meetings with the is particularly evident when he states, ‘‘Do duty, has the authority to seek imposition of necessary agency personnel will be necessary us all a favor and save the forest and defuse a constructive trust on the proceeds of the to ascertain the degree of interest at the var- this situation.’’ The author’s hometown of prohibited transaction and to compel ious decisionmaking levels of both the agen- Sebastopol, CA., happens to be a hot-bed of MAXXAM’s disgorgement of Pacific Lumber cy disposing of property, the agency initially environmental activism and conflict since and all its assets. receiving the property, and/or the FDIC. Be- the 1960s. The FDIC must act quickly to file an ac- fore such meetings take place, we do not rec- In the event you believe this letter de- tion against MAXXAM seeking ommended that one or more programs be serves greater scrutiny, it should be referred disgorgement. While the statute of limita- pursued to the exclusion of all others. to the local office of the Federal Bureau of tions has been extended by agreement in this Based on legal analysis alone, however, the Investigation. I would be pleased to contact matter, we respectfully point out that the provision of the Military Base Closure and them if you deem it appropriate. I can al- policies behind the statute of limitations

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00133 Fmt 0666 Sfmt 0634 E:\CR\FM\A20DE8.343 pfrm07 PsN: E20PT1 E2472 CONGRESSIONAL RECORD — Extensions of Remarks December 20, 2001 still hold true: recollections are fading; evi- verely limiting logging during litigation. 40.6% through related entities and through dence is being lost; witnesses may soon be- Most of the facts and conclusions asserted in the ownership of family members, Hurwitz come unavailable. Of particular concern in this memorandum must be known to and be- has served continuously on the MAXXAM this matter is the age of the Texas State yond contradiction by the FDIC, since the Group’s board since the MAXXAM Group was bank-examiner who played the central role FDIC alleged essentially the same facts in created as the successor to Simplicity Pat- in reviewing or supervising the review of the compliant filed in FDIC v. Milken. tern Corporation in June of 1984. USAT’s records; it is our understanding that There are many issues that are beyond the MAXXAM Group, Inc. (MAXXAM Group of he is now more than seventy years old. scope of this memorandum. It does not reach MGI) was created from Simplicity Pattern In addition, the FDIC must act quickly to any issues related to the eventual disposi- Corp (SPC) in June of 1984. MAXXAM Group protect the value of the res during litigation tion of Pacific Lumber’s assets after began its corporate existence as a subsidiary by positioning for a temporary restraining disgorgement. While the writers believe legal of MCO Holdings (MCOII), (another Hurwitz order and preliminary injunction to prevent mechanisms exist for transferring property controlled corporation, which acquired the any further irreparable harm such as has oc- acquired by the FDIC to other government Simplicity Pattern Corporation in 1982. curred as a result of recent intensive logging agencies without specific authorizing legisla- MAXXAM Group was formed as the result of a complicated set of interrelated trans- operations. These operations began Sep- tion, the writers currently assume that the actions. Simplicity Pattern Corporation tember 15th and are, in all probability, con- pending acquisition bill will create a willing (SPC) first spun off its actual pattern oper- tinuing. The recent logging involves buyer for many of these assets, i.e., the US ations as a production subsidiary, Simplicity clearcutting residual old-growth in or near Forest Service. Pattern Inc. (SPI). The parent corporation This memo does not reach any potential environmentally sensitive areas within the then sold the production subsidiary to an- choice of laws issues; where potentially ap- 44,000 acre area which is currently the sub- other corporation known as the Triton plicable, the writers will discuss both Texas ject of pending acquisition legislation in Group Inc. (TGI) which simultaneously Congress (HR 2866, which passed in the House and California law. It does not reach any spe- merged with yet another company, the Re- of Representatives September 21, 1994 and is cific issues of banking law, thrift regulation, public Corporation. currently under consideration in the Sen- or Federal securities law. Nor does it reach In the course of the the deal, Simplicity ate). We believe that these practices con- any issues related to the FDIC’s responsibil- Pattern’s parent corporation changed its stitute the deliberate destruction and dis- ities and obligations to the public to recover name to MAXXAM Group, Inc. and renamed sipation of irreplaceable assets. funds lost in the S&L bailout or to protect its real estate subsidiary, Twin Fair, which The trees that are currently falling rep- public resources. became MAXXAM Properties Inc (MPI). MPI resent an irreplaceable resource. From a This memo assumes that the location of simultaneously merged with Maxxus, an- purely economic standpoint, the old-growth the disposal property gives rise to jurisdic- other Hurwitz controlled company, Fed- trees are an order of magnitude more valu- tion in a Federal Court in the Northern Dis- erated Development Company (FDC). able than second growth; one 1000 year old trict of California. The writers have not Throughout much of the period we will be tree is worth more than $100,000 on the tim- made any attempt to compare the Ninth Cir- discussing, MAXXAM continued to be a sub- ber market. Top grade ‘‘clear redwood’’, cuit and Fifth Circuit case law on relevant sidiary of MCOH. In 1985, MCOII owned 37.2% which comes from the densest heartwood of issues or to otherwise evaluate the desir- of MAXXAM Group Inc. FDC (which, taken old growth trees, has long been prized for its ability of one forum over another. However, together with Hurwitz and his group, main- durability as well as its beauty. Such wood barring any compelling reason to litigate tained 65.2% voting control of MCOH) owned (when kiln dried) costs about $3.49 per board outside of California, we believe that the an additional 4.5% of MAXXAM directly. The foot at the local lumber yard. Lower grades public interest would be served best by remaining MAXXAM stock was largely held of redwood fetch from $.89 per board foot bringing the action within the state most af- by institutional investors. ($2.19 when kiln dried), for wood that is all fected by its outcome. There was also significant overlap of lead- ‘‘mirch’’ or sapwood, to $1.19 a board foot for FACTUAL SUMMARY ership among MCOH, MAXXAM and FDC. All five of FDIC’s trustees and five of MCOH’s ‘‘construction heart’’ grade, wood that is The factual basis for our argument can be seven directors (four of whom were were mostly heartwood, with some defects. A red- stated quite simply: common to both MCOH and FDC sat on wood tree must grow for more than 500 hun- (1) MAXXAM controlled and dominated MAXXAM’s ten member board. Charles dred years before it can be milled to produce United Savings Association of Texas (USAT), Hurwitz, George Kozmetsky, Barry Munitz substantial quantities of prime grade clear functioning, in actuality, as its controlling and Ezra Levin served on all three boards, redwood. shareholder. and occupied positions of real leadership From an environmental standpoint, the (2) Without providing full disclosure to within the three organizations. trees of Headwaters Forest represent an irre- USAT’s disinterested directors, MAXXAM, placeable resource of another kind. The ma- On September 24, 1986 a MAXXAM Group/ and MAXXAM’s CEO, Charles Hurwitz, used MCOH merger was announced, which was jestic ancient groves of Headwaters Forest MAXXAM’s position of trust and confidence represent one of the three remaining Cali- completed in April of 1988, when MCOH as a controlling shareholder, to enter into a emerged as the surviving parent corporation, fornia nesting areas for the endangered sea- prohibited deal with Michael Milken and the bird, the marbled murrelet, which requires renamed, however, as MAXXAM Incor- firm of Drexel, Burnham, Lambert. porated. Through an exchange of stock in closed canopy, virgin groves of old-growth (3) Under the terms of that deal, or quid pro the two companies, MAXXAM Group, Inc. trees for its nesting grounds. Headwaters is quo, MAXXAM caused USAT to purchase became a wholly owned subsidiary of also home to spotted owl (listed as endan- large amounts of Drexel under-written secu- MAXXAM Inc. In other words, MAXXAM gered by the State of California and as rities in return for Drexel arranging the fi- succeeded to all of MCOH’s interests and as- threatened by the Federal Fish and Wildlife nancing for MAXXAM’s takeover of Pacific sets and to all the interests of MAXXAM Service), and home to the southern seet sala- Lumber. Group, Inc., as well. It is entirely possible mander (under consideration for listing by (4) The quid pro quo worked very much to that, as is common practice, this merger was the Federal Fish & Wildlife Service as the benefit of MAXXAM and to the det- actually planned long before it was an- threatened; recommended for state listing as riment of USAT in that MAXXAM acquired nounced; this possibility should be explored ‘‘threatened’’ by California Department of a valuable, asset-rich company, while USAT in discovery. Fish & Game). Up to 10% of California’s wild was left with over a million dollars of essen- In the years immediately prior to its re- Coho Salmon, (which are under consider- tially worthless securities. naming as MAXXAM, MCOH had served as ation for a Federal listing as threatened by (5) The preponderance of these worthless the primary acquisition vehicle for the var- the National Marine Fishery Service) spawn Drexel securities in USAT’s portfolio precip- ious Hurwitz related corporations; once ac- in the rivers that give Headwaters its name. itated, or at least contributed in very signifi- quired, Simplicity and then MAXXAM The adjacent residual old growth provides cant part, to USAT’s failure, and dictated Group, joined in performing that function for buffer zones needed to keep the ancient the size of the FDIC’s ultimate $1.3 + billion the Hurwitz financial empire. MAXXAM groves intact and protect the vulnerable spe- contribution to the S&L bailout. played a significant role in the arguably co- cies. The 44,000 acre acquisition area, which (6) Drexel’s role in the financing of the PL ordinated acquisition campaigns and alleged ties isolated ancient groves together with acquisition was critical to the takeover’s green-mail activities of the various related each other and with other protected areas, success, because MAXXAM’s strategy re- companies in Hurwitz financial empire. incorporates significant residual old-growth quired cash for a 100% tender offer and Charles Hurwitz and MAXXAM’s Control of as well as second growth and represents the MAXXAM could not get financing elsewhere. United Savings Association of Texas area’s best chance for overall habitat recov- A brief history of the MAXXAM Corporation During all of the relevant times, ery. Although the MAXXAM Incorportated MAXXAM’s CBO Charles Hurwitz and The Scope of This Memorandum (MAXXAM) is publicly held, its fortunes and MAXXAM or MCOH exerted actual control This memorandum will summarize law and its business practices are almost inex- over the affairs of United Savings Associa- publicly available evidence supporting a im- tricably intertwined with those of its con- tion of Texas. That control was exerted position of a constructive trust and trolling shareholder, President, CEO, and through and demonstrated by several mecha- disgorgement of Pacific Lumber. It will also Chairman of the Board, Charles Hurwitz. In nisms: 1) ownership and control of a substan- summarize the facts and law supporting a pe- 1985, Charles Hurwitz owned 3% of the stock tial bloc of voting stock in the holding com- tition for a temporary restraining order se- of the MAXXAM directly, and controlled pany that was the S&L’s sole owner, coupled

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00134 Fmt 0666 Sfmt 0634 E:\CR\FM\A20DE8.347 pfrm07 PsN: E20PT1 December 20, 2001 CONGRESSIONAL RECORD — Extensions of Remarks E2473 with ownership of options to acquire more tor, it was never necessary for MAXXAM to The third group, the PennCorp directors, voting stock and ownership of preferred control a majority of voting stock in order were those associated with PennCorp, which stock which, in time, would have converted to exercise de facto control over the savings by virtue of owning a substantial portion of to voting stock had Hurwitz considered con- and loan. Records of UFG stock ownership preferred stock, placed four directors on the version desirable, 2) control of the boards of for the year 1986 show that 43.02% of UFG’s board. directors of the holding company and the voting stock was held in trust by the broker- Control of the Executive Committee S&L, 3) control of the executive committee age firm of Cede and Co. With 43% in trust, In early 1985, UFG–USAT formed an Execu- of the S&L, 4) control of the S&L investment and thus in all probability held by non-vot- tive Committee to determine USATs restruc- department and investment committee. ing shareholders, MAXXAM (or its prede- turing and investment strategy. Stock Ownership cessor) and Drexel merely needed to control The original members of the executive one share more than half of the remaining committee were Hurwitz, Munitz and Wil- United Savings Association of Texas 57%, in other words to control slightly more (USAT), a Texas state chartered savings and liams, along with two representatives of the than 28.5% of the holding company’s voting pre-merger group, C.E. Bentley (UFG/USAT’s loan, was a wholly owned subsidiary of the stock—a test that they met handily. savings and loan holding company, United Chairman of the Board from 1983 until 1985 Control of the Board of Directors Financial Group (UFG). According to the and President and CEO in 1984) and James R. complaint in FDIC v. Milken, ‘‘In mid-1983, In 1982 Charles Hurwitz first hired Barry Whately. Bentley resigned in November of Hurwitz, through two companies he con- Munitz and placed him on the boards of FDC, 1985, around the time of MAXXAM’s acquisi- trolled, Federated Development Co. and MCO UFG, MCOH and Simplicity as Hurwitz’ rep- tion of Pacific Lumber and when USAT’s purchases of Drexel junk bonds were at or Holdings, Inc., acquired approximately 23% resentative. As a director of UFC, Munitz ap- near their highest levels. Williams resigned of UPG.’’ In other words, when MAXXAM parently was given the task of ensuring that shortly afterward, in January 1986, possibly Group was created in 1984, its parent com- MAXXAM and its predeccesor corporation to prevent a conspicuous imbalance that pany, MCOH, already had a substantial in- retained actual control of the savings and would have made Hurwitz and MAXXAM’s terest in UFG, to which MAXXAM succeeded loan without overstepping any statutory or control apparent. when MAXXAM Group and MCOH merged. In regulatory boundaries that would have made United Financial Group’s 198810K report to such control indisputable. For Munitz, this Control of Investment Decisions meant continuing negotiations with the the SEC, MAXXAM is described as owning, Shortly after UFG–USAT formed the Exec- FHLBB to avoid confirming any agreements together with an affiliated entity (Federated utive Committee to redirect USAT’s invest- that would have situated MAXXAM or any of Development Co.), 23.3% of UFG’s common ment strategy, Ron Heubsch was hired to be its affiliates as guarantors of the S&L’s net stock. the VP of the Investment Department which worth. It also meant developing UFG–USATs Drexel held another major bloc, between served the Executive Committee. Heubsch, internal decision making structure and 7% and 9.7% of UFG stock. Again from the who had been employed by or associated board membership to mask the actual con- FDIC v. Milken complaint, ‘‘Drexel and with Hurwitz since 1969, worked for FDC dur- trol exercised by MAXXAM and its affiliates. ing the 1984–1985 Pacific Lumber takeover Hurwitz were the largest shareholders of Following the December 1982 merger of UFG during the entire period . . . together campaign and was reported to have acted as UFG/USAT and First American Financial of advisor to MAXXAM’s investment managers. controlling more than 30% of UFG’s out- Houston (FAF) (which created UFG/USAT in standing stock from 1984 until 1988, when As was noted in testimony before the Din- the form it was to have from that date until gell Committee, Heubsch also conducted ar- USAT failed.’’ Since MAXXAM (through it was seized by the FSLIC in December of Hurwitz) and Drexel (through Milken) con- guably coordinated arbitrage operations for 1988), UFG/USAT’s directors consisted of MCOH ($35 million) MAXXAM ($70 million) spired to control the S&L for their own ben- three groups with distinct characteristics. and UFG–USAT ($150–200 million); these arbi- efit and to the detriment of the USAT and The first group was made up of nine direc- trage activities began in 1986 or earlier and ultimately the FDIC, for our purposes tors who had served on the board of UFG/ continued through 1987 or later. During this Drexel’s stock ownership contributed to USAT before the UFG/FAF merger. This period Heubsch also served as Vice President MAXXAM’s contol as well, and the whole group was leaderless and had not developed for USAT’s investment department. should be attributed to MAXXAM. strong working relationships since the ma- Under the direction of the Executive Com- In addition to the outright ownership of jority of this group had served less than four mittee and Heubsch, the redirection of common stock, MAXXAM’s predecessor cor- months prior to date that MAXXAM’s CEO, USAT’s investment strategy was ultimately poration and affiliates held various options Charles Hurwitz, joined the board in 1983. quite drastic, converting USAT from a tradi- and other convertible instruments that in- The second group, the ten Hurwitz direc- tional savings and loan, with assets con- creased their ability to control UFG and tors, were associates of Hurwitz who could be sisting primarily of home mortgages, to an USAT. In June, 1984, UFG–USAT issued Se- said to be under the control of MAXXAM and investment bank, albeit a highly distorted ries C Convertible Preferred Stock. FDC– its affiliates. FHLBB rules required that 50% one, with assets consisting primarily of MCOH bought 97.5% of the issue. The series or more the directors be under a corporation ultra-high risk corporate securities. C was replaced (prior to its conversion date) or individual’s control before that entity Other Officers and Key Employees by series D in June 1987 which was replaced could be said to be a control person by this (prior to its conversion date) by Series E, in test. Hurwitz avoided establishing this type Other key employees of USAT had connec- June of 1988. The tactic of not actually exer- of conspicuous control of the board, although tions to MAXXAM related companies and to cising conversion rights but continuing to he succumbed in late 1987 when the exodus other Hurwitz affiliated entities as well. The maintain those rights, was apparently en- from the board overcame planning. The sec- First City National Bank’s connection to gaged in at the direction of MAXXAM’s ond group’s influence increased as it ex- UFG–USAT included the recruitment of Chairman of the Board, Charles Hurwitz, in panded its membership through the addition other USAT officers such as Michael R. Crow order to prevent activation of net worth of corporate officers to the board, and as the and Bruce F. Williams, who served as Vice guarantees which would have been required first group suffered attrition in late 1985. President and treasurer, and perhaps James by the Federal Home Loan Bank Board This second group, the Hurwitz directors, R. Walker, who was recruited from a large (FHLBB) had the percentage of voting stock formed the leadership group within UFG– Texas bank’s holding company and served attributable to MAXXAM’s predecessors USAT, controlling UFG’s Executive Com- USAT in marketing and branch administra- come to exceed 25% of the outstanding vot- mittee and USAT’s investment department tion. ing stock. In December 1985, MCOH bought a from their inception in 1984. In addition to MAXXAM’s Acquisition of Pacific Lumber put-call option for 300,000 shares of UFG– Hurwitz, who served as President and CFO of After MAXXAM sold the Simplicity Pat- USAT from Drexel, further increasing UFG–USAT in 1985 (i.e., during the period tern operating division, MAXXAM func- MAXXAM’s predecessor’s ability to exercise when MAXXAM was amassing its war chest tioned essentially as an investment com- voting control if the need should arise. and implementing plans for the Pacific Lum- pany; its assets consisted primarily of secu- At the end of 1985, Drexel’s and MAXXAM’s ber takeover), this group included George rities and real estate. Had this situation con- interests in USAT were: Kozinetsky and Barry Munitz, both of whom tinued, MAXXAM, as an investment com- also served on MAXXAM, MCO and FDC pany, would have been subject to stringent Total/ boards contemporaneously. Munitz chaired reporting requirements. It was, therefore, Total/ con- UFG–USAT’s Executive Committee from its %Common option ver- very much to MAXXAM’s advantage to ac- sion inception until it was disbanded in 1988. This quire a manufacturing or resource extraction group also included Gerald R. Williams, who subsidiary. During 1984 Hurwitz began FDC–MCOH ...... 23.3 26.97 41.97 was recruited from First City National searching for an operating company that Drexel ...... 9.67 6.0 6.0 Bank, a bank in which MAXXAM had in- MAXXAM could acquire. Totals ...... 33.0 33.0 47.97 vested and with which MAXXAM’s prede- According to testimony and documents cessor MCO had an oil purchase agreement. submitted by Hurwitz in the course of 1988 It is important to note that while the per- Williams served on the UFG–USAT Board hearings before Dingell’s Oversight and In- centage of voting stock controlled by from 1984 through January of 1986, and vestigation Subcommittee of the Committee MAXXAM and Drexel (or MAXXAM’s prede- served the board in various capacities at on Energy and Commerce, Bob Quirk of cessors and Drexel) remained below 50%, USAT including Executive VP, CEO and Drexel, Burnham, Lambert, first brought Pa- even taking into account the conversion fac- President. [q] cific Lumber to MAXXAM’s attention in or

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00135 Fmt 0666 Sfmt 0634 E:\CR\FM\A20DE8.349 pfrm07 PsN: E20PT1 E2474 CONGRESSIONAL RECORD — Extensions of Remarks December 20, 2001 around December of 1984. Quirk, at the re- an individual, corporation or individuals and organization included a number of poor per- quest of MAXXAM’s Robert Rosen, had pre- corporations acting as a group hold stock ex- formances which would have prevented its pared a list of forest products companies ceeding 5% of a single corporation’s out- qualifying for any of the traditional methods that were attractive as potential acquisition standing shares. Second, the Articles of In- of raising large amounts of capital, and, targets. MAXXAM and Drexel recognized corporation of the Pacific Lumber Company under the circumstances, even the loose reg- hidden values in Pacific Lumber’s 190,000 had what is known as a ‘‘super majority’’ ulations of the 80’s precluded banks from acres of real property in Humboldt County; clause. If a raider acquired 5% or more of making commercial loans backed by the the value of the redwood forests, which had PL’s share’s without permission of the PL kind of collateral MAXXAM could muster. not been inventoried by timber crews in board, then the raider would need an 80% ap- More important, MAXXAM was barred from more than 30 years, was not accurately re- proval vote of the stockholders if the raider taking money from its captive S&L, United flected in the market price of PL stock. Pa- wanted to force a merger. Otherwise, only a Savings Association of Texas, even though cific Lumber’s selective harvesting practices simple majority was needed. USAT’s assets measured at about $5 billion. had left the company with significant re- On September 30, 1985, MAXXAM revealed This kind of financing was, however, serves of old growth timber, including sig- its intention to buy 100% of PL’s shares and Milken’s specialty; Milken had built a large nificant reserves of old-growth redwood, force a merger. At that time, taking into ac- network of S&Ls, insurance companies, pen- which distinguished it from other timber count the PL stock acquired from Jefferies sion funds and corporations dependent on companies. Once owned by a liquidator, along with the 2.2% that MAXXAM acquired capital infusions provided by Drexel issued these trees could be turned into cash, pro- before August 6, MAXXAM publicly claimed junk bonds sold through the market hat viding impressive profits for a new owner, in- ownership of only 994,900 PL shares or 4.58% Milken and Drexel controlled. This ‘‘junk stead of the more modest income stream of PL’s outstanding stock, 90,837 shares short bond network’’ was the source of billions of generated by the old owners’ more conserv- of 5%. On October 2, 1985, MAXXAM filed a dollars for Milken and his friends. The net- ative harvesting strategies. 14D–1 with a Tender Offer price of $38.50 and work worked both ways, though. To get huge Clearly, the focus of the takeover was the filed a disclosure pursuant to HSR. sums of money for takeovers, the raider had land and trees, not the other subsidiaries or On October 22, 1985, MAXXAM received to give something back. In MAXXAM’s case assets of PL. All of PL’s subsidiaries and as- permission of the PL Board to buy more there was a large pool of capital that sets, including offices, ranch lands, the cut- than 5% of PL’s stock. At that time, the PL MAXXAM controlled but could not tap di- ting and welding division and the over-fund- Board believed that MAXXAM then held less rectly, i.e. the assets of United Savings Asso- ed pension fund, would be sold for or con- than 5% of the timber company’s out- ciation of Texas. The complaint in FDIC vs Milken alleged: verted to cash shortly after the merger, to standing shares, and required MAXXAM to ‘‘Between 1985 and 1988 the Milken group pay down the bank loan portion of the $850 secure approval of only 50% of the share- raised about $1.5 billion of financing for million debt resulting from the takeover. holders to effect the sought after merger. Hurwitz takeover ventures. In return, Only a 100% tender offer would preserve However, at the time MAXXAM was author- Hurwitz caused USAT to purchase huge the hidden values in PL for the benefit of ized to effect the merger on a simply major- amounts of Drexel-underwritten junk bonds. MAXXAM once the takeover was completed. ity, Ivan Boesky owned a major block of PL . . . For MAXXAM’s purposes, it was critical stock under circumstances that suggest that that the value of the forest assets not be re- ‘‘The Milken Group placed much of the he was holding that stock for MAXXAM’s debt Drexel underwrote for USAT with its vealed to the PL shareholders or telegraphed benefit, once again potentially dem- to the market, since, once recognized, those network. For example, about $272 million onstrating the lengths to which MAXXAM face amount of the $615 million of senior sub- values would belong to whichever stock- would go to secretly accumulate stock and holders held PL shares at that time. ordinate extendible notes (the ‘‘zero coupon capital for a Pacific Lumber takeover. notes’’ underwritten by Drexel to finance The importance of MAXXAM’s secretly ac- Boesky began buying PL stock on Sep- cumulating the stock and capital required to Hurwitz’s takeover of the Pacific Lumber tember 27, 1985. At the time of MAXXAM’s Company (‘‘Pacific Lumber’’) in 1986 was make a credible 100% tender offer in the Oct. 2 tender offer, Ivan Boesky had pur- planned hostile takeover (in other words, to purchased by First Executive and various of chased a total of 143,400 shares of Pacific its subsidiaries, Columbia and GNOC Cor- prepare an offer that PL truly could not Lumber. Public documents show that on Oc- refuse) is underscored by the lengths to poration (‘‘GNOC’’), a subsidiary of Golden tober 22, 1985, Boesky was the largest holder Nugget, Inc. (‘‘Golden Nugget’’). Similarly, which Hurwitz and MAXXAM went to keep of PL stock, with over 5%. Next was regulatory agencies and the public in the the Milken Group placed a significant MAXXAM, with slightly less than 1 million amount of the senior subordinated extend- dark about MAXXAM’s interest in PL and shares and slightly less than 5%. Boesky’s accumulation of PL stock. MAXXAM began ible notes issued in connection with the Pa- purchases of PL stock became widely known. cific Lumber takeover with S&Ls, including acquiring PL stock in June of 1985, stopping At critical moments, Boesky’s purchases on on August 5, 1985 after accumulation just AMCOR, a wholly-owned subsidiary of Lin- the open market may have made any alter- coln Federal Savings & Loan, Hupter Sav- short of the $15,000,000 worth of shares that native to MAXXAM seem unrealistic and would have triggered the notice provisions of ings Associations and Pima.’’ perhaps even less desirable. ‘‘In exchange for these entities purchase of the Hart, Scott, Rodino Act (HSR) which re- A suit on behalf of PL’s pre-merger share- the Pacific Lumber financing, the Milken Group quires public notification of stock purchases holders (in which a $50,000,000 settlement is and Hurwitz arranged for USAT to purchase valued at more than that amount. pending), alleges that Boesky purchased that other Drexel-underwritten junk bonds (empha- On the same day, Ezra Levin’s law firm of stock at Milken’s request for the purposes of sis added).’’ Kramer, Levin, acting on behalf of secretly buttressing MAXXAM’s position While the Rose Foundation can’t possibly MAXXAM, contacted the law firm of Mor- prior to MAXXAM’s making its takeover know what additional evidence the FDIC has gan, Lewis, Bockius, who represented the plan public. These allegations reflect mate- assembled concerning the MAXXAM/Drexel brokerage firm of Jefferies & Co., to discuss rial in the SEC and US indictments of quid pro quo, the evidence in the public a put/call arrangement, which Hurwitz testi- Milken and Drexel (based in considerable record is sufficient to convince the Founda- fied his lawyers had indicated was permis- part on information given them by Boesky) tion of the truth of the allegation. For the sible under HSR without making the ar- suggesting that Boesky was used by Milken period beginning in spring of 1985, when rangement or any prior purchases public, and Hurwitz to help MAXXAM secretly gath- MAXXAM first began amassing the capital even given the size of Hurwitz’s prior hold- er control of a larger percentage of PL stock for its Pacific Lumber takeover, and con- ings. While Hurwitz denied that MAXXAM and to help keep potential ‘‘white knights’’ tinuing until December of 1988 when and Jefferies entered into any kind of formal out of the PL takeover. The government’s MAXXAM lost control of USAT, there is a put/call agreement, option arrangement or case against Milken tells us that, at a min- clearly observable correspondence between other contract, the Dingell committee hear- imum, Boesky bought PL shares at Milken’s the size of USAT’s purchases of Drexel high- ings reveal that Jefferies began buying PL request once the takeover was announced, risk securities and the size of bond issues un- stock on August 6 continuing to buy until and that when Boesky sold those shares he derwritten by Drexel for MAXXAM and re- September 27, 1985 when Jefferies sold 500,000 gave about half of the profits to Drexel. lated entities, which were then placed with shares to Hurwitz at more than $4/share less others in the Drexel network. (Please see ac- How did MAXXAM exploit its position as a than its value at close of market. Arguably companying chart). controlling shareholder in USAT to take- this reflects the same pattern of prohibited These reciprocal transactions can be sum- stock ‘‘parking’’ that led to the subsequent over Pacific Lumber? marized as follows: indictment of the Jefferies firm’s principal While MAXXAM was able to secure some In May of 1985, Drexel underwrote and Boyd Jefferies in connection with stock conventional financing for its takeover ef- placed a $150 million bond issue for parking for Boesky and others. fort, MAXXAM could not have raised the MAXXAM, of 1985 Drexel underwrote and MAXXAM’s direct stock purchases stopped $900 million necessary for the 100% tender placed a $35 million bond issue for MCOH. just short of acquiring a 5% interest in Pa- offer without Drexel’s help. Conventional The funds generated by these bond issues al- cific Lumber. Had MAXXAM acquired a 5% bank financing for the amount required was lowed MAXXAM and MCOH to purchase the interest or greater, several consequences out of the question, since MAXXAM, even shares of PL stock that Jefferies had accu- would have flowed. First of all, securities when considered together with Hurwitz and mulated. Correspondingly, on July 1, 1985, laws require the filing of a form 13D with the his related companies, had only about $100 USAT recorded purchases of Drexel issued Securities Exchange Commission (SEC) when million in assets. MAXXAM’s history as an high risk bonds valued at $280 million.

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00136 Fmt 0666 Sfmt 0634 E:\CR\FM\A20DE8.351 pfrm07 PsN: E20PT1 December 20, 2001 CONGRESSIONAL RECORD — Extensions of Remarks E2475 In November of 1985, Drexel underwrote a Hurwitz but rendered USAT insolvent, to the holders, along with liberalizing class action $450 million bond offering for MAXXAM the detriment of the FDIC. rules, that it is a common, but mistaken be- proceeds of which were used to acquire more 2. Whether, as a remedy under California lief that California affords better rights and Pacific Lumber stock to complete the cap- and Texas law, the Courts will impress a con- remedies to minority shareholders than to ital build-up necessary for MAXXAM’s ten- structive trust over Pacific Lumber for the creditors. Actually, the fiduciary duty of der offer. Then, in June of 1986, Drexel float- benefit of the FDIC. controlling shareholders to creditors was ed another $430 million in ‘‘Bridge Notes’’ for Conclusions well established at the time of Ahmanson, MAXXAM, which allowed MAXXAM to re- 1. Under both California and Texas law, and creditors were never hobbled with a need place the earlier $450 million issuance. On MAXXAM and Hurwitz, as controlling per- for a derivative action, but had a direct right July 1 of 1986, USAT recorded purchases of sons of USAT, had a fiduciary duty to USAT of action. The language quoted above from the Ahmanson decision, quoting Remillard, $688 million worth of Drexel junk bonds, rep- and its depositors MAXXAM and Hurwitz quoting Pepper, shows that all three courts resenting the peak of USAT’s Drexel bond breached their fiduciary duty to USAT and specifically contemplated creditors. See also, purchases. Also in July, Drexel underwrote a its depositors by engaging in financing Commons v. Schine, 35 Cal.App. 3d 141, 110 $575 million bond issue for Pacific Lumber, transactions for the acquisition of Pacific these ‘‘Reset Notes’’ were used to pay off the Cal.Rptr. 606 (1973) discussed below. Lumber which rendered USAT insolvent, but The celebrated procedural innovations of Bridge Notes; the rest were used for general benefited MAXXAM and Hurwitz. MAXXAM Ahmanson mask the fact that the Ahmanson corporate purposes, which may have included and Hurwitz are liable to the FDIC, which court also expanded the substantive fidu- reducing the bank debt incurred in the take- stands in the shoes of USAT and its deposi- ciary obligations of controlling shareholders. over. tors, and was injured by the wrongful con- Prior law enforced fiduciary obligations vis- After 1986, USAT’s Drexel securities pur- duct of MAXXAM and Hurwitz. a-vis corporate assets and corporate opportu- chase began to taper off, with only about 2. The Courts should impress a construc- nities, but there was laissez faire attitude $321 million worth of such purchases re- tive trust over Pacific Lumber for the ben- with respect to a shareholder dealing strictly corded in July of 1987. These purchases prob- efit of the FDIC, because MAXXAM and in his stock. In the case of a sale of control- ably represent USAT’s last purchases in con- Hurwitz acquired Pacific Lumber with funds ling interest for a substantial premium nection with the Pacific Lumber deal. misappropriated from USAT, and MAXXAM above the per-share market value of minor- In 1986, junk bonds represented 97.4% of all and Hurwitz were unjustly enriched. ity shares, the excess was considered to be corporate securities held by USAT. A very Discussion payment for control as such, which was high percentage of these were Drexel issues, 1. Controlling shareholders have a fidu- deemed to be an asset of the operation rather which had a higher default rate than that of ciary duty to the corporation and its credi- than the shareholder. Thus, a fiduciary duty other junk underwriters. USAT’s portfolio tors. existed with respect to such respect to such was described by Louis Ranieri, who took control premiums. Otherwise, a majority control of the seized S&L in January of 1989, A controlling shareholder or group of shareholders, even if they hold no corporate shareholder’s dealings with his shares did as ‘‘80% bologna.’’ Unquestionably, USAT’s not entail fiduciary obligations to minority office, and do not sit on the corporation’s junk portfolio played a major role in deter- shareholders. mining the size of the FDIC’s $1.3 billion+ fi- Board of Directors, have a fiduciary duty to The Ahmanson Defendants did not receive nancial contribution to the Ranieri group the corporation and its creditors, not to use any control premium, and argued that the bailout plan for USAT. unfairly their control of the corporation for lack of public market for the minority sav- Renowned economists George Akerlof and their personal benefit to the detriment of the ings and loan shares was unaffected by De- Paul Romer have developed an economic corporation and its creditors. The leading fendants’ conduct. The Court held, however, model which demonstrates, in general, the case in California on controlling shareholder that the majority shareholders have a fidu- motivation for Milken and Drexel to con- liability is Cal. 3d 93, 81 Cal.Rptr. 592 (1969). ciary obligation not to benefit themselves spire with someone such as Hurwitz in or- In Ahmanson, the Supreme Court, in an unfairly by virtue of their controlling posi- chestrating a plan of the type described here. opinion by Chief Justice Traynor, confirmed tion, and to share those benefits with the Among other things, Akerlof and Romer existing California law imposing a fiduciary corporation, its minority shareholders, and demonstrate convincingly that it was pos- duty on majority shareholders. The Court its creditors. sible for Milken and Drexel to use institu- quoted with approval from the earlier Court Texas law imposes a virtually identical ob- tions like USAT to ensure full subscription of Appeals opinion in Remillard Brick Co. v. ligation upon a controlling shareholder a of particularly risky junk bond issues, defer- Remillard-Dondini, 109 Cal.App. 3d 405, 241 duty to deal fairly with corporation, its ring the ultimate failure of those issues, in P.2d 66 (1952), which in turn quoted from the other shareholders and its creditors. This order to maintain their short term sales and U.S. Supreme Court opinion in Pepper v. Lit- duty is broader than the trust fund doctrine. profits. [George A. Akerlof & Paul M. Romer, ton, 308 U.S. 295., 60 S. Ct. 238; This broad duty results from the controlling Looting: The Economic Underworld of Bank- ‘‘*** ‘A director is a fiduciary * * * So is shareholder’s inside knowledge of the cor- ruptcy For Profit, NBER Reprint No. 1869 a dominant or controlling stockholder or poration’s affairs and the opportunity such a (1993)]. This model provides expert support, group of stockholders * * * He who is in such controlling insider has to manipulate the as well as an academic economic analysis, of a fiduciary position * * * cannot use his corporation’s affairs for his personal advan- how it was possible for both Drexel and power for personal advantage and to the det- tage. Tigrett v. Pointer, 5 80 S.W. 2d 3 MAXXAM to make a huge amount of money riment of stockholders and creditors no mat- (Tex.Civ.App.—1978. writ ref’d n.r.e.). by looting the federal treasury. The model is ter how absolute in terms that power may be Hurwitz and other common members to also interesting because it suggests that and no matter how meticulous he is to sat- the MAXXAM and UFG boards stood in an Hurwitz may well have planned and expected isfy technical requirements * * * Where especially demanding position. Transactions all along that USG/USAT would fail and the there is a violation of these principles, eq- between board of directors of corporations FDIC be forced to foot the bill. uity will undo the wrong * * *’ This is the having common members will be guarded as There are a number of additional sources law of California’’ 1 Cal. 3d at 108, 109, 81 jealously by the law as are personal dealings of information concerning the alleged quid Cal.Rptr. at 599,600. between director and his corporation. In pro quo and its impact on USAT’s financial In Ahmanson, the Defendants controlled other words, each director and officer of UPG condition, which, while not part of the public 85% of a closely held savings and loan asso- and MAXXAM must put the interests of the record, are available to the FDIC, and which, ciation, of which Plaintiff was minority corporation whose hat they wore at the to our knowledge, have been ignored up to shareholder. In order to create a public mar- time, ahead of the other corporation, to this time. These include potential testimony ket for their own stock, the Defendants which they also owned a duty of loyalty. by the former chief bank examiner for the formed a public company, and contributed Further, the burden of proving the fairness State of Texas who supervised the review of their controlling interest in the savings and of the transactions is on the interested direc- USAT’s records, as well as testimony and loan to the public company, thereby freezing tors. Where the fairness of such transactions evidence developed in connection with a law- out the minority. Plaintiff initiated a class is challenged, the burden is upon those who would maintain them to show their entire suit brought by former shareholders of Pa- action lawsuit, which was dismissed by the fairness and where sale is involved, full ade- cific Lumber arising out of the alleged im- Trial Court based on then-existing law which quacy of consideration. Crook v. Williams proprieties in MAXXAM’s takeover. required a derivative action, and prohibited a direct action, whenever a minority share- Drug Co., 558 SW 2d 500 (Tex. Civ. App.—1977, LEGAL ANALYSIS holder’s grievance was common to all minor- writ ref’d n.r.e.). For example, enforcement Questions Presented ity shareholders. In reversing the Trial of contracts between corporations having 1. Whether, under California and Texas Court, the Supreme Court established a new, common membership on their boards of di- law, MAXXAM, INC. (‘‘MAXXAM’’) and direct right of action against majority share- rectors is not favored. Reynold-South- Charles Hurwitz (‘‘Hurwitz’’) as controlling holders, and also took the opportunity to ad- western Corp. v. Dresser Industries, Inc. 438 persons of United Savings Association of dress other issues of the case, including lib- SW 2d 135 (Tex. Civ. App.—1969, no writ). [See Texas (‘‘USAT’’), are subject to liability to eralizing the class action certification rules, also Gaither v. Moody, 528 S.W. 2d 875 (Tex. the FDIC for breach of fiduciary duty, aris- and a full discussion of the fiduciary duties Civ. App. 1975. writ ref’d n.r.e.) holding that ing out of ‘‘junk bond’’ financing of the ac- of majority shareholders. at the time of the merger of one corporation quisition of Pacific Lumber which conferred In fact, Ahmanson was so celebrated for es- with another, a director and major share- substantial benefits on MAXXAM and tablishing direct actions by minority share- holder of a corporation stood in a fiduciary

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00137 Fmt 0666 Sfmt 0634 E:\CR\FM\A20DE8.353 pfrm07 PsN: E20PT1 E2476 CONGRESSIONAL RECORD — Extensions of Remarks December 20, 2001 relationship to both corporations.] To the ex- proved the transaction under those cir- A typical statment of the rule occurs in tent the common directors and officers had cumstances. Mazzera v. Wolf, 30 Cal. 2d 531, 183 P.2d 649 divided loyalties, and failed to disclose mate- The purchases of billions of Drexel junk se- (1947): ‘‘A constructive trust may be imposed rial information relating to the purchase of curities had a direct, and dire, impact on the when a party acquires properties to which is junk securities, such officers and directors USAT’s financial health. While the precise not justly entitled, by actual fraud, mistake violated their duty to the purchasing cor- extent of that impact can only be deter- or violation of a fiduciary or confidential re- poration (UFG/USAT). The fiduciary obliga- mined by testimony of those who conducted lationship.’’ tions of the managers, directors and officers the critical reviews of the saving’s and loan’s The Ninth Circuit Court of Appeals has of USAT should be viewed as running toward portfolio and records, it is clear from held that the essence of the constructive the shareholders of UFT and the depositors. Akerlof & Romer’s review of the literature trust theory is to prevent unjust enrichment See, In Re Weslec, 434 F. 2d 195 (5th Cir. 1970). on the failure rates of Drexel securities, that and to prevent a person from taking advan- As a controlling shareholder of UFG/USAT, in the absence of those investments the bail- tage of his own wrongdoing, and that a con- Hurwitz had a duty to deal fairly with UFG/ out of USAT been substantially smaller, if it structive trust may be imposed in prac- USAT, its depositors and its other share- were even necessary at all. tically any case where there is a wrongful holders. Hurwitz’ failure, or more likely, in- Hurwitz and MAXXAM did not make cer- acquisition or detention of property to which tentional refusal, to disclose the terms of the tain the economic rewards (such as they another is entitled. United States v. Pegg, agreement with Milken and Drexel violated were) resulting from the prohibited trans- 782 F.2d 1498 (1986, 9th Cir). this duty. It is a classic example of conflict action with Milken and Drexel flowed to all Imposition of a constructive trust is a typ- of interest and misuse of inside information: owners of UFG and its subsidiary, USAT. To ical remedy for breach of fiduciary duty in Hurwitz used his insider’s knowledge of the contrary, Hurwitz engineered the trans- Texas as well, and has often been applied in UFG’s affairs to manipulate UFG/USAT into actions to ensure the benefits flowed to the context of breaches of duty by corporate purchasing Drexel junk bonds to the benefit MAXXAM, not UFG, USAT and their deposi- officers and directors. Therefore, assuming, of Hurwitz and MAXXAM. tors and shareholders. To the extent that arguendo, that Hurwitz, acting on behalf of It is axiomatic that Hurwitz, as an officer, UFG and USAT’s depositors and share- MAXXAM, breached both his and director, and controlling owner owed a typ- holders took the risk of the sub silentio deal MAXXAM’s fudiciary duties by self-dealing ical fiduciary duty to UFG and USAT. Fagan with Drexel, those depositors and share- and failing to disclose all material informa- v. La Gloria Oil and Gas Co., 494 S.W.2d 624 holders should also have received the re- tion to the officers, directors, and share- (Tex. Civ. App.—1973, no writ); Dowdle v. wards. holders of UFG, a constructive trust can and Tex. Am. Oil Corp., 503 S.W.2d 647 (Tex. Civ. By causing USAT to invest in the poor should be imposed upon their assets con- App.—1973, no writ). this duty requires the quality Drexel-underwritten securities, cerned, including, but not limited to, the officer and director to place the interests of which destroyed USAT and damaged the stock of Pacific Lumber. the corporation ahead of their own. The FDIC to the tune of $1.3 billion, MAXXAM The equitable remedy of imposition of con- power of Hurwitz’ office was required to be and Hurwitz breached their fiduciary duty to structive trust may be awarded for breach of exercised solely for the benefit of the cor- USAT and its depositors. the higher standards of conduct demanded in poration, i.e. UFG/USAT, not MAXXAM, 2. It is immaterial whether the controlling a fiduciary relationship. Chien v. Chen, 759 MCO Holdings, or Hurwitz. Canion Texas interest is directly owned, or is indirectly S.W.2d 484 (Tex.App.—Austin 1988); Republic Cycle Supply, Inc., 537 S.W. 2d 510 (Tex. Civ. held through affiliated persons or entities. of Haiti v. Crown Charters, 667 F.Supp. 839 App. 1976, no writ). (Directors of corporation In Commons v. Schine, 35 Cal. App. 3d 141, (imposition of constructive trust is appro- owed to it a duty of loyalty and were bound 110 Cal.Rptr, 606 (1973), the Defendant con- priate remedy for breach of fiduciary duty). to in any business which might result in per- trolled a corporation, which in turn con- For example, a constructive trust was im- sonal benefit to a director or officer, or trolled a second corporation, which in turn posed on alleged ill gotten profits realized by which might result in a benefit to any other was the general partner of a real estate lim- ERISA fiduciary as a result of fiduciary’s al- corporation (e.g., MAXXAM) in which they ited partnership. When the limited partner- leged breach of duty of loyalty, even though had a personal interest the officers and di- ship got into financial difficulty, the Defend- plan participants and beneficiaries had al- rectors must demonstrate the highest good ant caused it to liquidate substantial assets ready received actuarily vested plan bene- faith). See Reynolds Southwestern Corp., and to pay in full a debt to Defendant, which fits. Amalgamated Clothing & Textile Work- supra. rendered the partnership insolvent, unable to ers Union v. Murdock, 861 F.2d 1 Cir. 1988). Texas not only recognizes this fiduciary pay its other creditors. Plaintiff, the Bank- A fiduciary is liable to turn over to the duty, but charges the insider to make cer- ruptcy Trustee acting for the other credi- principal any money or property received as tain that the economic rewards flowing from tors, brought the action in state court to re- a result of the breach of his duty of trust. US corporate opportunities inure to all owners cover the payment from Defendant on a the- v. Goodrich, 687 F.Supp. 567 (MD Fla. 1988) af- of the enterprise. That obligation is even ory of breach of fiduciary duty. Notwith- firmed 871 F.2d 1011 (11th Cir.). Constructive stronger in the case of a bank, both because standing that the debt was legitimate, that trusts are frequently imposed where the of the fiduciary nature of banking and be- it was due and payable, and that California breach of fiduciary duty is committed by a cause of the duty to depositors. First Nat. law expressly authorizes preferential pay- corporate fiduciary, such as a director. Bates Bank of La Marque v. Smith, 436 F. Supp. 824 ments (Civil Code § 3432), the Court held the v. Cekada, 130 FRD 52 (ED Va. 1990). A cor- (d. Tex. 1977), aff’d in part, vacated in part, Defendant liable for the entire amount of the porate fiduciary will not be allowed to retain 610 F.2d 1258 (5th Cir.). A corporate fiduciary payment on a theory of unjust enrichment. proceeds arising from a violation of his fidu- may not derive a personal benefit in dealing The Court was not deterred at all by the De- ciary duty. Poe v. Hutchins, 737 SW 2d 574 with corporation’s fund or its property. fendant’s indirect ownership, but grounded (Tex.App.—Dallas 1967, writ ref’d n.r.e.). Texas Soc. v. Fort Bend Chapter, 590 S.W.2d its decision on the fact of control. The Court The general rule of corporate opportunity 156 (Tex. Civ. App.—1979, writ ref’d n.r.e.). stated: demands that if an officer or director in vio- But despite his duties to UFG/USAT ‘‘One who dominates and controls an insol- lation of his duty acquires gain or advantage (which, it appears, he ignored), Hurwitz, act- vent corporation may not . . . use his power for himself, interest so acquired is charged ing on behalf of MAXXAM, was able to lever- to secure for himself an advantage over with trust for the benefit of the corporation, age UFG/USAT assets into financing other creditors of the corporation. [Citing In Re American Motor Club, 109 BR 595 MAXXAM’s takeover of Pacific Lumber by Pepper v. Litton, supra, and other cases.] (Bankruptcy ED NY 1990). The officers of a means of an all cash tender offer. Absent The corporate controller-dominator is treat- closely held corporation, to which the cor- Drexel’s junk bond financing of the tender ed in the same manner as director . . . and poration systematically diverted its assets offer, MAXXAM did not have the money to thus occupies a fiduciary relationship to its without documents of title or other formali- make such an offer. Absent Hurwitz’ com- creditors. [Citations] As a guilty fiduciary, ties, failed to demonstrate good faith in mitment agreement to cause UFG/USAT to he is liable in quasi contract to the extent their dealings with corporation. The result purchase billions of dollars of Drexel junk that he has unjustly enriched himself of his under Tennessee law was to hold any pro- bonds, Drexel would not have financed the breach [citations].’’ 35 Cal.App. 3d at 144, 110 ceeds from sale of transferred assets in con- tender offer. Absent UFG/USAT’s purchase of Cal. Rptr. at 608 structive trust for corporation and its credi- billions of dollars of Drexel junk bonds, there The fact of domination and control of tors. In Re B&L Laboratories, 62 BR 494 could not have been a Pacific Lumber tender USAT by Hurwitz and MAXXAM would ap- (Bankruptcy MD Tenn 1986). Delaware law is offer. pear to be provable, and has been already al- similar. Had there been full disclosure of all mate- leged by the FDIC in action referred to in If a corporate officer of director violates rial facts surrounding Hurwitz’s involvement the statement of facts. The fiduciary duty of his duty to the corporation and acquires gain with Milken and Drexel to the disinterested Hurwitz and MAXXAM to USAT and its or advantage for himself, the law charges the UFG/USAT directors, including disclosure of creditors would not be blunted by the indi- interest so acquired with a trust of the ben- the agreement to purchase junk securities in rect nature of their control through affili- efit of the corporation while denying to the exchange for later financing, would UFG/ ates and subsidiaries. betrayer all benefit and profit. Phoenix Air- USAT have purchased billions of Drexel 3. Both Texas and California Courts have lines Services v. Metro Airlines, 390 SE 2d junk? It is highly uhlikely that the disin- repeatedly impressed constructive trusts 919, 194 (Ga.App. 120, rev’d 397 SE2d 699, 260 terested directors, cognizant of their own ob- over the ill-gotten assets acquired by a fidu- Ga 384, on remand 403 SE2d 832, 199 Ga.App. ligations to UFG/USAT, would have ap- ciary in breach of his fiduciary duties. 92 (1989).

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00138 Fmt 0666 Sfmt 0634 E:\CR\FM\A20DE8.355 pfrm07 PsN: E20PT1 December 20, 2001 CONGRESSIONAL RECORD — Extensions of Remarks E2477 MAXXAM and Hurwitz diverted USAT’s as- Indeed, the weight given environmental con- it, the FDIC, on the other hand, has powers sets into the Milken system, and benefited sequences is so significant and the public in- of discovery and powers of subpoena, and has from their wrongful conduct by obtaining terest in environmental protection so strong access to the resources of one of the nation’s 100% financing for the takeover of Pacific that courts have held that plaintiffs need largest and best respected law firms, with in- Lumber. MAXXAM and Hurwitz were un- only establish either a ‘‘fair chance of suc- house multi-state legal research facilities. justly enriched by their wrongful conduct. cess on the merits’’ or ‘‘the raising of ques- We are convinced that if we can make a good There is substantial authority, in both Cali- tions serious enough to require litigation.’’ case for the FDIC’s, and the U.S. taxpayers’, fornia and Texas for imposing a constructive Marbled Murrelet v. Babbitt, Case No. C 93 equitable rights in these extraordinary prop- trust over Pacific Lumber for the benefit of 1400–FDMS (unpublished decision) (N.D. CA erties, the FDIC can make an even better the FDIC, as successor to USAT. 1994) p. 6–7 (emphasis in the original). (Text case. We are interested in discussing how we 4. Given the propriety of imposing a con- of decision follows under separate cover.) can work cooperatively to make sure that structive trust over Pacific Lumber for the Applying this standard, let us review the the best possible case is made, and made benefit of the FDIC, injunctive relief is ap- facts we have outlined above. Based solely on quickly, for recovery of these important as- propriate to protect the res during litiga- information in the public record, it is clear sets. There are, as noted above, a number of tion. that there are questions raised which are se- rious enough to require litigation. These sources of information concerning When the FDIC succeeds in litigating its questions, including the allegation of a pro- MAXXAM’s conduct as a controlling share- claims against MAXXAM and Hurwitz for hibited quid pro quo in which Milken and holder of UPG/USAT, the alleged MAXXAM/ breach of fiduciary duty, it will acquire, Drexel conspired to exploit the purchasing Drexel quid pro quo, and its impact on through constructive trust, equitable rights ability of USAT to prop up Drexel issues, in USAT’s financial condition, which we believe over Pacific Lumber’s assets. In addition to return for Drexel securing financing for are available to the FDIC, which, to our recovering millions of dollars worth of prop- MAXXAM’s acquisition of Pacific Lumber, knowledge, have been ignored up to this erties for the American taxpayers, it will ac- have been raised in FDIC v. Milken, and re- time. While the statute of limitations had quire the Headwaters Forest with its very lated issues were raised in both SEC v. been tolled by agreement in this matter, unique environmental values and issues. time still tends to erode evidence. Memories As mentioned above, substantial tracts of Milken and US v. Milken. While those cases settled before the are fading; witnesses may become unavail- old growth are being cut down right now. strength of the evidence supporting these al- able; records are being lost. We believe that While cutting was halted over the summer, legations could be evaluated in court, there continued unexplained failure to pursue during the nesting season of the endangered is sufficient evidence in the public record to these potential sources of evidence would in- marbled murrelet, that nesting season ended demonstrate that the FDIC has, a the very dicate a true unwillingness on the part of the September 15 and Pacific Lumber has re- least, a ‘‘fair chance’’ of proving that FDIC to seriously pursue this matter. sumed cutting at a drastic rate. By winter, First, if the FDIC is to make a case for any Hurwitz, acting on behalf of MAXXAM, many very large and very old trees will be claims arising out of USAT’s failure, it breached that company’s fiduciary duties as gone and a good deal of old growth habitat seems appropriate to immediately subpoena a controlling shareholder of UFG/USAT, and/or buffer will be destroyed. Mr. Art Leiser, the retired chief banking ex- causing MAXXAM to acquire Pacific Lumber Where, as here, such dire, irreversible envi- aminer for the Texas State Banking Com- as a direct result of those breaches, and that, ronmental consequences are at issue, espe- mission who reviewed and supervised the re- therefore, imposition of a constructive trust cially consequences that impact an endan- view of USAT’s records during the period on the proceeds of that transaction is appro- gered species, emergency injunctive relief is from 1982 to 1988. Mr. Leiser is now more priate and that, therefore, ultimately a peti- particularly appropriate. than seventy years old, so time is truly of tion for the disgorgement of Pacific Lumber Generally, under Federal law, as articu- the essence. It also seems appropriate to sub- has, again at the very least a ‘‘fair chance of lated in the 9th Circuit, injunctive relief poena all documents and records controlled success.’’ This evidence includes records of should be granted if the moving party can by Mr. Leiser or the Texas State Banking USAT’s purchases of Drexel junk bonds meet one of two tests: Commission records that relate to the con- equivalent in value to contemporaneous First if: duct of USAT’s investments and other busi- Drexel issues of MAXXAM debt instruments (1) The moving party will suffer irreperable ness during that time, both so that Mr. used to finance MAXXAM’s Pacific Lumber injury if the injunctive relief is not granted; Leiser can refresh his recollection and so takeover; it also included Akerlof and (2) The moving party will probably prevail that Mr. Leiser can testify concerning the Romer’s expert analysis of the economic fac- on the merits; significance of those documents and records. tors that permitted institutions such as (3) In balancing the equitics, the non-mov- Because of confidentiality constraints, Mr. USAT to be used (and demonstrate the like- ing party will not be harmed more than the Leiser’s testimony requires a letter of au- lihood that they were used) by Milken to en- moving party is helped by the injunction; thorization from Mr. James Pledger, who is sure that risky Drexel issues were fully sub- and the current Texas Savings and Loan Com- scribed. (4) Granting the injunction is in the public missioner. Such a letter would almost cer- interest. We are also convinced that the FDIC has access to evidence that further documents tainly be issued upon receipt of a subpoena. Landi v. Phelps, 740 F.2d 710, 712 (9th Cir. the alleged breaches of fiduciary duty and It is our understanding that despite repeated 1984), citing William Inglis & Sons Baking Co their critical role in the PL acquisition, encouragement to do so, the FDIC has failed v. ITT Continental Baking Co., 526 F2d 86, 87 which, when presented to the court will to contact Mr. Leiser. (9th Cir. 1975); or, second, by demonstrating: Second, it would seem that the FDIC make the probability of the FDIC’s ultimate ‘‘either a combination of probable success on should immediately subpoena the deposition success in this matter even more apparent. the merits and the possibility of irreparable transcripts and files of Mr. Bill Bertain, an Among this evidence is evidence assembled injury or that serious questions (on the mer- attorney in Eureka, California, who testified in connection with FDIC v. Milken, SEC v. its) are raised and the balance of hardships before the Dingell Committee on the Pacific Milken and US v. Milken. We are also con- tips sharply in his favor;’’ (emphasis in the Lumber and who is currently representing a vinced that by exercising its powers of dis- original) group of former shareholders of Pacific Lum- covery and powers of subpoena, the FDIC The Ninth Circuit has stated that the tests ber in their case against MAXXAM arising can, with diligent effort further develop the are not separate, but ‘‘represent two points out of alleged improprieties in the takeover. evidence required to make success in the on a sliding scale in which the required de- It is our understanding that the MAXXAM/ matter close to certain. gree of irreparable harm increases as the Drexel quid pro quo became a central issue probability of success decreases.’’ Oakland CONCLUSION in that case as the case moved toward the Tribune v. Chronic Publishing, 762 F. 2d 1374, The Rose Foundation believes it has estab- currently pending $50,000,000 settlement. 1376 (9th Circ. 1985). Under this formulation, lished that a very strong case exists for the Moreover, it our understanding that al- the Supreme Court requires that the public claim that the FDIC has equitable rights to though both staff attorneys and outside interest be considered where the public may the assets of Pacific Lumber. If immediate counsel for the FDIC are aware that there is be affected. Weinberger v. Romero-Barcelo, action is not taken to protect these rights, significant overlap between the issues raised 456 U.S. 305, 312; 102 S. Cit. 1798, 1803 (1982); the taxpayers will lose a potential recovery in that case and those presented by the American Motorcyclist v. Watt, 714 F.2d 962, of some of the 1.3 billion dollar expenditure claims arising out of the failure of USAT, 967 (9th Cir. 1983). required to bail out UPG/USAT. Addition- the FDIC has not made any attempt to sub- Environmental impacts, and especially im- ally, the FDIC will allow the loss of the last poena the deposition transcripts or other po- pacts involving an endangered species are unprotected area of old growth redwood for- tential evidence accumulated in connection considered especially important and carry a est in the world, an old growth forest that, with that case. presumption of irreparability. Save the Yaak as the Rose Foundation has pointed out, is Third, if the FDIC has not already done so, Comm. v. Black, 840 F. 2d. 962, 967 (9th Cir. the rightful property of the American people. it would seem that the FDIC should imme- 1988) (presumption of irreparable harm in en- The Rose Foundation and its counsel have diately depose Charles Hurwitz, Barry vironmental action alleging NEPA viola- access only to publicly available information Munitz, George Kozmetsky, Ezra Levin, Ron tion); Sierra Club v. Marsh, 816 F. 2d. 1376, on the conduct of USAT’s affairs, and lim- Heubsch and other key officers, directors and 1382–84 (9th Cir. 1987) (presumption of irrep- ited resources with which to acquire and employees of USAT, UTG, MAXXAM, MCOH arable harm in endangered species action). analyze that information. As we understand and Federated Development Company.

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00139 Fmt 0666 Sfmt 0634 E:\CR\FM\A20DE8.357 pfrm07 PsN: E20PT1 E2478 CONGRESSIONAL RECORD — Extensions of Remarks December 20, 2001 Among other things, these depositions loan guarantee program. Rather, the govern- From: J. Kirk Boyd. should be directed toward uncovering strate- ment, upon inspection of USAT, discovered Date: May 19, 1995. gies employed to obscure MAXXAM and that there was a ‘‘hole’’ in USAT that was a Re: United States of America, ex rel., Robert Hurwitz’ control of UPG/USAT, and toward result of the depletion of assets of USAT. Martel v. Charles Hurwitz, et al. U.S. developing evidence of the MAXXAM/Drexel Given the size of the hole, the government District Court, Northern District of Cali- quid pro quo. was left with two choices: one, the govern- fornia, Case No. C 95–0322 VRW. At the same time that it is pursuing all ment could let USAT go into default and The purpose of this memo is to address the possible avenues for developing additional then pay the depositors’ claims upon federal question of what false claims were made by evidence, it is vital that the FDIC act as guarantees, or two, the government could the defendants and whether the false claims speedily as possible to file an action for put money into USAT to fill the hole suffi- made are actionable under the False Claims breach of fiduciary duty against the ciently to convince a third party to purchase Act. Based upon the analysis below, false MAXXAM corporation, seeking imposition of USAT. claims were made and the payment of gov- a constructive trust and disgorgement of Pa- As you know the latter course was taken ernment funds for the bailout of the depleted cific Lumber and moving immediately for in- and the government sold USAT out of receiv- USAT makes these claims actionable under terim protection of these extraordinary for- ership to Ranieri. As part of the deal with the False Claims Act. est assets, which are in truly imminent dan- Ranieri, on or about December 30, 1088, and FACTS ger of irreparable harm as a result of PL’s continuing thereafter, the government paid Through MAXXAM Inc., Hurwitz, recent, continuing logging onslaught. In this substantial amounts into USAT. We con- MAXXAM’s controlling shareholder, Presi- instance, failure to act in a timely fashion clude from the authorities discussed in our dent, CEO, and Chairman of the Board, was could preclude recovery of a national asset of legal memo that this pay out, combined with also the controlling shareholder of USAT in extraordinary and incalculable value. the false statements regarding net worth and the 1980s. MAXXAM was formed from merg- the quid pro quo conspiracy, is sufficient to ers of various Hurwitz-controlled corpora- satisfy the claim requirement as described in RECORD 14 tions in the early 1980s. As outlined in our McNinch, Neifert-White and their progeny. complaint, Hurwitz controlled USAT (with The government should not overlook the use HOPKINS & SUTTER, the help of Drexel) and his claims to the con- June 29, 1995. of 31 U.S.C. § 3729(3) in this case. There was a trary can be easily disproved. conspiracy by Hurwitz and others to make JEFFREY ROSS WILLIAMS, In December 1984, Drexel Burnham Lam- Federal Deposit Insurance Corporation, Wash- false claims regarding net worth so the gov- bert, Michael Milken’s firm, brought Pacific ington, DC. ernment would not catch on while they trad- Lumber to Hurwitz’s attention as a possible DEAR JEFF: Enclosed is the May missive ed out the assets of the institutions they takeover target. Hurwitz decided that he from the Rose Foundation and an ‘‘Adden- controlled to one another. wanted to acquire Pacific Lumber since the In consideration of the applicable law and dum’’ to the written disclosure statement. In value of its redwood forests had not been the factual circumstances of this case, we reviewing my qui tam materials, I was not inventoried in more than thirty years and it hope that upon review of the legal memo the sure if you had received this or not. There is was significantly undervalued on the mar- government will be even more inclined to not much new here, although the legal argu- ket. However, MAXXAM’s assets and bor- join in this qui tam suit. We look forward to ment is somewhat more developed. rowing potential alone were not enough for hearing your thoughts on these legal issues. Best regards, Hurwitz to raise the $900 million necessary You will also see enclosed herewith a sup- F. THOMAS HECHT. for a 100% tender offer. Although MAXXAM’s plement to the disclosure statement sub- captive Savings & Loan, USAT, had assets mitted previously. We are providing further worth $5 billion, Hurwitz was barred from BOYD, HUFFMAN, & WILLIAMS, details to the original statement with re- taking that money directly. He learned this SAN FRANCISCO, CA, May 19, 1995. spect to the investigative activities of the lesson when he tried to use USAT funds di- Joann Swanson, relator, in particular his contact to Mr. Art rectly to take over Castle & Cook but was Assistant U.S. Attorney, San Francisco, CA. Leiser and the valuable information that Mr. enjoined by a court in Hawaii. STEPHEN J. SEGRETO, Leiser has. I have spoken with Mr. Leiser To avoid the restrictions on his use of fed- U.S. Department of Justice, Washington, DC. and believe that the ‘‘107 forms’’ that he and erally insured USAT funds for takeover pur- Re: United States of America, ex rel., Robert others in his bank examiners’ office required poses, Hurwitz joined Milken’s ‘‘junk bond Martel v. Hurwitz, et al. Case No. C95 0322 to be prepared by USAT show that numerous network’’ in order to indirectly tap USAT’s VRW. written false claims were made by Hurwitz assets. This network was comprised of S&Ls, DEAR JOANN AND STEPHEN, It has been and his representatives with respect to insurance companies, pension funds and cor- some time since we have discussed this case USAT’s net worth. In my first conversations porations that were dependent on capital in- and I am anxious to hear how the govern- with Mr. Leiser, he told me that no govern- fusions provided by Drexel-issued junk ment’s investigation of the legal claims is ment officers from the FDIC or any other bonds, and was the source of billions of dol- going. As I have told you before, we have a governmental organization has spoken with lars for Milken and his friends. In order to team of lawyers that have been spending him regarding his knowledge of the false use this source of cash, Hurwitz had to ante- considerable time analyzing the potential claims made with respect to net worth (even up by buying junk bonds from Drexel. To do causes of action and designing a structure after we had submitted the memo from The this, he used the large pool of capital, the as- for a qui tam false claims case. When I last Rose Foundation which included information sets of USAT, that he could not directly tap. spoke with Mr. Segreto, he asked what is the from Mr. Martel regarding Mr. Leiser). In order to keep a stream of money to oth- false claim that was made. I responded that Later, and more recently, when I spoke to ers members of the conspiracy who, in turn, there were numerous false claims made re- Mr. Leiser, he said that he had been con- would cause money to flow to him, Hurwitz garding net worth. The question then be- tacted but that the contact was only cursory caused USAT to engage in numerous dubious comes, given that false claims were made re- and that his deposition has never been practices to boost its short term profits. He garding net worth, did these false claims re- taken, nor had he been asked to review im- caused USAT to stop making residential real sult in a payment by the government? portant documents that were prepared at his estate loans, sold 71% of the branch offices, In the case of United States v. McNinch, direction regarding the net worth of USAT. inflated deposits by purchasing ‘‘hot money’’ 356 U.S. 595 (1958), a case involving federally Hopefully your office is using its investiga- deposits (deposits originated by other insti- guaranteed loans, the Court held that the tory powers under the qui tam stature to tutions at unreasonably high interest rates), mere submission of a false application to a contact Mr. Leiser and memorialize through and sold brokered certificates of deposit at credit institution, which in turn procured a deposition or other statement the informa- unreasonably high interest rates. In short, FHA insurance of the loan, did not con- tion that he has to offer. Mr. Leiser is an el- Hurwitz stopped operating USAT as a home stitute a false claim against the government. derly man and his valuable testimony should mortgage lender and began a trade off of its The Court stated, ‘‘the conception of a claim be secured. assets for his personal benefit. against the government normally connotes a I look forward to talking with the two of With the money that he raised by selling demand for money or for some transfer of you about the government’s ongoing consid- off assets and increasing liabilities from 1985 property.’’ However, in footnote 6, the Court eration of this qui tam suit. As I have said to 1987, Hurwitz used USAT to purchase over expressly left open the question whether the before, and these memos substantiate, we in- $1.28 billion junk bonds from Drexel. In re- result would be different if there were a de- tend to cooperate fully with the government turn, during the same years, Drexel fault on the loan and a demand upon the gov- and hope that you will tell us if there is any underwrote about $2.2 billion of junk notes, ernment as guarantor. The accompanying way that we may be of further assistance. bonds, and debentures to finance corporate legal memo discusses the cases subsequent to Sincerely, acquisitions, such as the takeover of Pacific McNinch where, as in the case at hand, the J. KIRK BOYD. Lumber, by MAXXAM. The timing of these government did pay out money as a result of actions was not a coincidence—they con- the false claims that were made to obtain or stituted an explicit and illegal deal, a quid BOYD, HUFFMAN & WILLIAMS, maintain government loan guarantees. pro quo, which had the purpose and effect of The facts of the Hurwitz case are some- ATTORNEYS AT LAW transferring USAT’s assets to MAXXAM and what unique in that there was no direct de- Memorandum leaving the FDIC and the U.S. taxpayers mand made for payment under the federal To: Joann Swanson, Stephen Segreto. holding the empty bag of the looted S&L.

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00140 Fmt 0666 Sfmt 0634 E:\CR\FM\A20DE8.359 pfrm07 PsN: E20PT1 December 20, 2001 CONGRESSIONAL RECORD — Extensions of Remarks E2479 Knowing that USAT was federally insured, ‘‘by virtue of the Act’s construction . . ., it covered by the False Claims Act. Id. at 599 and wanting to continue to drain its assets is sufficient for liability to attach that Rob- n.6. without being put into receivership, Hurwitz ert L. Teeven knowingly caused to be pre- Shortly after the McNinch decision, the misrepresented the net worth of USAT. Fur- sented to the Department of Education false Court of Appeals for the Third Circuit spe- thermore, to hide the effects of these fraudu- and inflated default claims based on a policy cifically addressed this question in United lent investments on USAT, Hurwitz acceler- of deliberately failing to pay student re- States v. Veneziale, 268 F.2d 504 (3d Cir. 1959), ated paper gains and hid losses through un- funds.’’ 862 F. Supp. at 1221, n.32. Specifi- where the government, having guaranteed a acceptable accounting devices, such as not cally, the government contended that the de- loan based on a fraudulent application, was ‘‘marking to market’ securities which had fendant knew ‘‘that if a student defaulted on required to pay under its guaranty. The lost market value, but instead carrying them his loan and had not been paid a refund that court recognized it was resolving the ques- to cost. Ultimately, Hurwitz was able to was due, the necessary and foreseeable result tion left open in McNinch. shuffle enough USAT money into his pockets would be that the outstanding loan balance In the McNinch opinion the Supreme Court expressly left open the question whether the to buy Pacific Lumber. for the student would be too high and thus additional facts of default on the loan and FALSE CLAIMS ACT the default claim submitted to the Depart- ment of Education would be too high.’’ Id. In demand upon the government as guarantor In United States v. Neifert-White, 390 U.S. 228 this case, Hurwitz knew that by mistaking would make a case under the False Claims (1967) the Court affirmed the broad Congres- USAT’s net worth there was a ‘‘hole’’ devel- Act. That question is before us now. Id. at sional purpose of the Act, holding that the oping in USAT—a hole that would later have 504. The Veneziale court held that ‘‘the gov- False Claims Act is a far-reaching remedial to be filled with taxpayers’ money—which it ernment, having been compelled to pay an statute extending to ‘‘all fraudulent at- was. He also knew that the junk bonds pur- innocent third person as a result of a defend- tempts to cause the government to pay out chased with USAT funds would be worthless ant’s fraud in inducing the undertaking, is sums of money.’’ 390 U.S. at 233. In that case, or would stop significantly in value and the entitled, to assert a claim against the de- the Supreme Court held that supplying false foreseeable result would be USAT’s collapse fendant under the False Claims Act.’’ Id. at information in support of a loan application and the depositors’ submission of claims to 505. Similarly, this case involves a situation to a federal agency constituted a ‘‘claim’’ the FDIC. where, based on Hurwitz’s false claims re- within the meaning of the Act. Even though The Teeven court held that Teeven’s al- garding net worth which allowed Hurwitz to the loan application was not a direct claim leged knowledge and direction of the refund operate the S&L as a federally insured insti- for payment of an obligation owed by the policy was sufficient to make out a claim tution, the government was forced to pay government, it nevertheless was ‘‘an action under the False Claims Act. In so holding, out money to the creditors when the S&L which has the effect of inducing the govern- the court rejected the defendant’s argument collapsed. ment to part with money.’’ 390 U.S. at 232. In that even if the failure to pay refunds was Other circuit courts have agreed that the construing the Act, the Court noted found to be attributable to him, as a matter result of the false claim inquiry is different from when there is a submission of ‘‘[d]ebates at the time suggest that the Act of law, it still would not constitute the McNinch false documents and a need for a the govern- was intended to reach all types of fraud, knowing submission of a false claim. The ment to pay out as guarantor. For example, without qualification, that might result in court wrote: ‘‘Neither the text of the statute United States v. Ekelman & Assocs., 532 F.2d financial loss to the Government. . . . the nor case law interpreting it, mandate that a 545 (6th Cir. 1976), held that individual de- Court has consistently refused to accept a Defendant is only liable when he/she has fendants were liable for the costs of mort- rigid, restrictive reading, even at the time made or caused to be made false statements gage defaults after false loan applications when the statute imposed criminal sanctions in connection with a false claim.’’ 862 were submitted to the government under the as well as civil.’’ Id. at 232. Similarly, in this F.Supp. at 1222. VA and FHA loan guarantee and insurance case, Hurwitz’s fraud did not consist of a di- Indeed, 31 U.S.C. § 3729(c) defines a ‘‘claim’’ programs. The court reasoned that McNinch rect claim, but his actions nevertheless ‘‘had including any request or demand for money held that there was no claim because the the effect of inducing the government to part or other things of value, whether or not FHA disbursed no funds. Here, however, the with money.’’ under contract, so long as any portion of the court wrote, ‘‘it is sufficient to note that the Moreover, the Supreme Court held in money or property requested will either be instant case involves a false statement made United State ex rel. Marcus v. Hess, 317 U.S. 537 provided or reimbursed by the United with the purpose and effect of inducing the (1943), that defendants can cause a false States. 3 According to Congress, the Act is Government immediately to part with claim for payment to be presented to the meant to reach any fraudulent attempt to money,’’ and that the cause of action arose government by their conduct. In Hess, con- cause the government to pay out money, when the mortgage holder presented a claim tractors who, through collusive bidding, ob- even if the claim is made against a party to the VA or FHA for payment on the guar- tained contracts with municipalities to work other than the government, if the payment on federal Public Works Administration anty or insurance. of the claim would ultimately result in a loss In United States v. Hibbs, 568 F.2d 347 (3d projects, were held liable under the Act be- to the United States S.Rep. No. 345, 99th Cir. 1977), in holding that a causal connec- cause, though paid directly by the munici- Cong. 2d. Sess. 10 (1986), reprinted in 1986 U.S. tion must be shown between loss and fraudu- palities, the project was funded largely by CODE CONG. & ADMIN. NEWS 5266, 5275. lent conduct, the Third Circuit Court of Ap- federal government. The Court held that the The defendants may argue that based upon peals cited McNinch for proposition that ‘‘the provisions of the statute, considered to- the holding in United States v. McNinch, 356 making of a false certificate, standing alone, gether, indicate a purpose to reach any per- U.S. 595 (1958), there is no false claims be- does not entitle the government to the stat- son who knowingly assisted in causing the cause the government never paid on a claim utory forfeiture. There must have been a government to pay claims which were made against the deposit guarantee. Rather, payment.’’ Id. at 350. In United States v. Amer- grounded in fraud, without regard to wheth- the government infused capital into USAT so ican Heart Research Found, 996 F.2d 7 (1st Cir. er that person had direct contractual rela- that there would be sufficient capital and 1993), in holding that reverse false claims, tions with the government. 317 U.S. at 544–45. claims would not be made. i.e., when government receives too little Like the defendants in Hess, the taint of In United States v. NcNinch, 356 U.S. 595 money, are ‘‘claims’’ within False Claims Hurwitz’s misrepresentation of net worth (1958), a case involving federally guaranteed Act, the First Circuit Court of Appeals and illegal quid pro quo scheme entered into loans, the Court held that the mere submis- agreed with Neifert-White, which distin- every depositor’s potential claim which was sion of a false application to a credit institu- guished McNinch on grounds that it involves the cause for payment into USAT by the tion, which in turn procured FHA insurance no payment of government money. Id. at 10 FDIC. of the loan, did not constitute a false claim n.3. The Supreme Court reaffirmed the Hess in- against the government. In that case, the Lower courts as well have held McNinch to terpretation of the Act in United States v. FHA merely agreed to insure a home im- its particular facts in finding that submis- Bornstein, 423 U.S. 303 (1976). The Court held provement loan, and it did not actually dis- sion of false applications which ultimately that the False Claims Act gives the govern- burse any funds. The Court stated: ‘‘The con- cause the government to pay out funds con- ment a cause of action against a subcon- ception of a claim against the government stitute a ‘‘claim’’ under the False Claims tractor who ‘‘causes’’ a prime contractor to normally connotes a demand for money or Act. submit false claims. The fraud need not have for some transfer of public property.’’ Id. at Although most of the federally guaranteed been perpetrated through a direct contract 599. Although the Court held that a lending loan cases involve two parties, an individual with the government, and the party held lia- institution’s application for credit insurance or corporation that submits the false loan ble need not have been the party who sub- under the FHA program was not a ‘‘claim,’’ application and the bank or credit corpora- mitted the claim to the government. the Court expressly left open the question tion that approves the loan, United States ex The theory of liability under the Act in the whether the result would be different if there rel. Lavalley v. First Natl. Bank of Boston, 1990 case at hand is similar to that successfully had been a default on the loan and a demand U.S. Dist. LEXIS 9913 (D.Mass. 1990), is a case argued in United States v. Teeven, 862 F. Supp. upon the government as guarantor: where the bank itself was accused of pre- 1200 (D. De. 1992). In Teeven, the government Since there has been no default here, we senting a false and misleading ‘‘material ad- brought an action under the False Claims need express no view as to whether a lending verse change report’’ to the FmHA which in- Act against Teeven as Chairman of the institution’s demand for reimbursement on a duced the FmHA to guarantee the loans of a Board of the USA Training school. The court defaulted loan originally procured by a corporation that went bankrupt. The govern- agreed with the government’s argument that fraudulent application would be a ‘‘claim’’ ment alleged that the bank failed to apprise

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00141 Fmt 0666 Sfmt 0634 E:\CR\FM\A20DE8.362 pfrm07 PsN: E20PT1 E2480 CONGRESSIONAL RECORD — Extensions of Remarks December 20, 2001 the government of its misgivings about the the relator was also active in community af- trading.’’ Hurwitz would cause his investor, corporation’s management and ability to fairs. The relator, along with others, worked Ron Huebsch, to purchase corporate securi- repay the loans, and this fraud was moti- vigorously to place three measures on the ties from Milken and if gains were recog- vated by its special relationship with the ballot for Humboldt County in 1988, includ- nized, then they would be immediately construction lender on the project, which it ing measures that put limitations on off- taken, but if the securities’ value declined, wished to protect from loss on the construc- shore drilling off the California coast. These they would remain on the USAT books at tion loan. This scenario is similar to the case measures were approved by the voters and their purchase price. Through this process at hand, where Hurwitz, wishing to protect became law. Hurwitz and the other defendants were able MAXXAM’s takeover projects and knowing In the following year, the relator and oth- to deplete the assets of USAT while main- that the S&L would most likely collapse, ers prepared additional ballot measures, one taining a facade that they were satisfying submitted false accounting reports to the of which pertained to pollution caused by their net worth requirement in order to re- government to assure continued federal in- forestry practices in Humboldt County. The main a federally insured savings and loan. surance of the S&L funds. political activism of the relator was opposed Throughout this period of time the relator by Charles Hurwitz and Pacific Lumber. De- was preparing materials for a book on the liberate efforts were made by Hurwitz and activities of Charles Hurwitz, Michael Attorney-Client Privilege, Attorney Work Pacific Lumber to undermine the relator’s Milken and others. In furtherance of this en- Product political activities including threats to ad- deavor he went to Texas to talk with the Addendum to Written Disclosure Statement vertisers in the relator’s newspaper that chief bank examiner, Art Leiser, the person for the Case of United States of America ex they would be boycotted by Pacific Lumber in a position to review the assets of USAT rel., Robert Martel, Plaintiff, v. Charles if they continued to purchase advertise- and analyze whether Hurwitz and other were Hurwitz, Barry Munitz, Maxxam Group, ments. The relator continued to investigate making misrepresentations to the govern- Inc., Federated Development Company, Hurwitz even when he and his advertisers ment about their net worth. In a private United Financial Group, and Does 1–100, in- were subjected to anonymous threatening meeting with Mr. Leiser, Mr. Leiser in- clusive, Defendants phone calls for his continuing work on for- formed the relator that yes, Charles Hurwitz and the directors of USAT had misrepre- Provided to the Attorney General of the estry issues. Faced with personal attacks and an adver- sented the net worth of USAT and that they United States, Department of Justice, tising boycott by Pacific Lumber, the relator had been dramatically increasing USAT’s li- Washington, D.C., and the United States remained undaunted and continued his inves- abilities at the same time that they were Attorney, Northern District of Cali- tigation of Charles Hurwitz. Part of this in- making these misrepresentations. Further, fornia—May 19, 1995—Read and Approved vestigation included looking into Mr. it was discussed how these misrepresenta- by Robert Martel Hurwitz’ control of UFG, the holding com- tions allowed USAT to remain in business I. BACKGROUND pany for USAT. It was determined through long after it should have, thereby giving A. Previous Submission of Disclosure Statement investigation that Charles Hurwitz had Charles Hurwitz and others the opportunity to further deplete the assets of USAT which A qui tam action was filed on January 26, abused his control over an insurance com- pany in New York and was forced to pay would ultimately be repayed by United 1995 by the plaintiff-relator Robert Martel on States taxpayers pursuant to Federal De- behalf of the United States of America. The fines. The investigation also revealed that Charles Hurwitz had close ties to Michael posit Insurance guarantees. compliant was filed under seal in accordance Specially, Mr. Leiser explained to the rela- Milken and that Michael Milken had been re- with the procedures for the False Claims Act tor that there were monthly reports that he and a written disclosure statement was sub- sponsible for assisting Charles Hurwitz in his had prepared by his examiners concerning mitted at that time. The written disclosure effort to amass capital for the purchase of USAT and that these monthly reports in- statement included exhibits which provided UFG, the holding company for USAT. Upon a cluded rankings of the status of USAT. Sev- a detailed explanation of the facts revealing closer look at USAT, it was recognized by eral rankings reflected that USAT were in- fraudulent activity. the relator that the goal of Charles Hurwitz deed in trouble and that it was not meeting The purpose of this addendum to the writ- in purchasing USAT was to use the assets of its net worth requirements regardless of the ten disclosure is to further elaborate upon USAT to attain his goals as a corporate raid- representations that were being made by the history of the realtor and describe how er. The relator located documents in Hawaii USAT directors such as Barry Munitz. he uncovered false claims by the defendants concerning an attempt by Charles Hurwitz to Furthermore, the relator also met with including their misrepresentations regarding use the USAT funds to take over Castle & other journalists in Houston and upon fur- the net worth of United Savings Association Cooke, a publicly traded company with ex- ther study of the stock ownership of UFG, of Texas, USAT. tensive land holdings. The documents re- the relator further uncovered that Charles viewed included a court order enjoining Hurwitz was also misrepresenting to the gov- B. Personal History of the Relator Charles Hurwitz from using the USAT funds ernment the amount of control that he had Robert Martel (hereinafter ‘‘relator’’) has (which were federally insured) as capital for over UFG. Had Hurwitz admitted that he had worked for many years as an investigative corporate raiding. more than 25% control over UFG, then his journalist. The relator received his degree Knowing of Hurwitz’ connections to responsibility to maintain new worth re- from St. Mary’s College in mathematics and Milken, the relator also investigated quirements would have increased. Under no thereafter did graduate work at the Univer- Milken’s connections to other savings and circumstances did Hurwitz want his net sity of Santa Clara. He has also studied loans. It was apparent to the relator that worth requirements to go up * * * stocks and bonds transactions, as well as Hurwitz, having been thwarted in his effort corporate financing, and has been licensed by to use the funds of USAT directly in his cor- RECORD 15 the National Association of Securities Deal- porate takeover aims, may try to cir- ers. cumvent the court’s decision by making an Memorandum In 1983 the relator started a newspaper arrangement with someone else to, in effect, To: Douglas H. Jones, Acting General Coun- called ‘‘The Country Activist.’’ The news- launder the USAT money. Upon review of sel paper reported on community issues in documents obtained through his investiga- Through: Jack D. Smith, Deputy General northern California, including issues regard- tion, the relator determined that Hurwitz Counsel ing timber harvesting. As both a founder and had caused the USAT savings and loan to From: Marilyn E. Anderson, Senior Counsel; writer for this newspaper, the relator did in- purchase large amounts of bonds from Mi- Patricia F. Bak, Counsel; Robert J. vestigative work regarding the Pacific Lum- chael Milken and that Michael Milken, in DeHenzel, Jr., Senior Attorney ber Company and its land holdings in Hum- turn, had caused other entities such as Co- Subject: Retention of Outside Counsel, boldt County including ancient old-growth lumbia Savings & Loan and the First Execu- United Savings Association of Texas forests. The Country Activist published sev- tive Life Insurance Company to purchase Date: February 14, 1994 eral articles concerning Pacific Lumber for- bonds issued by Hurwitz in his takeover of This memorandum outlines our search for est issues. Pacific Lumber. counsel in this matter, narrows the consider- As part of the investigative work of the During this investigation it also became ation to two firms, Cravath, Swaine & Country Activist, the relator followed the apparent to the relator that Charles Hurwitz Moore/Duker & Barrett and Hopkins & Sut- takeover of Pacific Lumber by Charles and the other directors of UFG were deplet- ter, and sets forth some of the considerations Hurwitz and Maxxam, Inc. This investigation ing USAT to send funds to Milken. Milken, we deem relevant to the selection of counsel included interviews with people affected by in return, caused others to purchase bonds to assist the Professional Liability Section takeover as well as the review of documenta- for Hurwitz’s corporate raids such as the in handling the United Savings Association tion concerning Charles Hurwitz and the ac- takeover of Pacific Lumber. It was discov- of Texas (‘‘USAT’’) directors’ and officers’ li- tivities of the Maxxam Corporation includ- ered that one way Hurwitz and the others ability litigation. We understand that it will ing its control of United Financial Group went about this was through the improper be attached to the recommendation of the (‘‘UFG’’), the holding company for the Texas unstreaming of assets as dividends from Associate and Assistant General Counsel. savings and loan, United Savings & Loan of USAT to UFG. Another method the relator Background Texas (‘‘USAT’’). recognized from his experience as a stock- USAT failed on December 30, 1988. The pro- In addition to being the founder and a broker was that assets were being improp- jected loss to the insurance fund is $1.6 bil- writer for the Country Activist newspaper, erly drained from USAT through ‘‘gains lion. The Professional Liability Section, as

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00142 Fmt 0666 Sfmt 0634 E:\CR\FM\A20DE8.364 pfrm07 PsN: E20PT1 December 20, 2001 CONGRESSIONAL RECORD — Extensions of Remarks E2481 assisted by outside counsel, has investigated ∑ A respected ‘‘presence’’ and proven track inasmuch as both Cravath, Swaine & Moore potential claims relating to the failure of record that will carry weight with the pro- and Duker & Barrett lack minority partici- the institution and is prepared to request au- posed defendants and the court, pation from within; thorization to initiate litigation against a ∑ Aggressive, clever approach to litigation, ∑ Certain logistical, management, and co- number of former directors and officers of with the breadth of resources to handle po- ordination issues are raised by the participa- USAT, USAT’s holding company, United Fi- tentially unique settlement options, perhaps tion of at least three firms, two of which are nancial Group, Inc. (‘‘UFG’’) and Charles requiring coordination with Congress, in New York; and Hurwitz. Mr. Hurwitz has a national reputa- ∑ Familiarity with not only basic legal ∑ The firm’s high hourly rates and the pre- tion in corporate acquisitions and takeovers. issues, but exotic securities products and ac- vious negative publicity concerning those Others among the proposed defendants also counting issues/quick study with ability to rates in the Drexel Litigation. are very prominent. come up to speed under significant time lim- Hopkins & Sutter If approved, suit would be based upon itations, including dealing with experts in claims of gross negligence, breach of fidu- Hopkins & Sutter is a large national, Chi- this highly specialized fielf, cago based, firm that has handled vast ciary duties of loyalty and care and knowing ∑ Local Texas presence; and amounts of FSLIC, and subsequently FDIC participation in the breach of fiduciary duty. ∑ Compliance with Minority/Women Owned and RTC, litigation. During the period from at least 1984 through Firm Guidelines. 1988, USAT paid imprudent dividends to Although we found Reid & Priest to be a Pros: UFG, allowed UFG to wrongfully retain tax highly competent firm, with insightful com- ∑ The firm has broad experience with FDIC refunds belonging to USAT, make a large im- ments concerning the proposed claims and issues, organization and personnel, particu- prudent loan to a Hurwitz affiliate, and paid potential strategies, the firm eliminated larly with respect to professional liability excessive compensation to USAT manage- itself from consideration based on its stated claims and staff. The firm was outside coun- ment who were Hurwitz’s friends and associ- inability to commit the needed resources to sel in the Silverado, FirstSouth, F.A., Gi- ates to MCO Holdings, Inc. (‘‘MCO,’’ later a matter of this magnitude at this time. Our braltar Savings Association and Texas Bank know as Maxxam) and Federated Develop- & Trust Company cases, among others; ment Corporation (‘‘FDC’’), entities which observations of the pros and cons of the re- maining firms we interviewed are as follows: ∑ The ‘‘core’’ partners who would staff the collectively owned a significant percentage case—particularly John Rogers—are sharp Cravath Swaine & Moore and Duker & Barrett of and exercised even greater control over and very familiar with the issues. Mr. Rog- UFG. While these transactions alone re- While we were interested in hiring Cravath ers, a highly regarded trial lawyer, was ac- sulted in losses approximating $100 million, Swaine & Moore, and more particularly tively involved in MBS issues on behalf of to conceal its growing insolvency, USAT also David Boies of that firm as lead counsel, the the FHLBB during the time frame relevant engaged in imprudent gains trading in mort- proposal made by Mr. Boies and his firm was to USAT’s activities, as was Hopkins & Sut- gage-back securities which resulted in addi- that we hire both Cravath Swaine & Moore ter partner Michael Duhl, who has already tional losses in the hundreds of millions of and Duker & Barrett. The Duker & Barrett undertaken an analysis of certain tax issues dollars. firm largely consists of former Cravath Almost immediately after USAT’s failure, related to UFG on behalf of TAOSS; Swaine & Moore lawyers with whom Mr. ∑ The firm has a Dallas office, is willing to UFG approached the FDIC to try and settle Boies has worked while at Cravath and the FDIC’s claims against it. Since that open a Houston office, and is familiar with thereafter. Staffing for the case would in- time, the Professional Liability Section has local practice; clude David Boies as lead counsel, Bill Duker ∑ engaged in on going discusssions with the po- Past cases have left the Professional Li- and Duker & Barrett lawyers and paralegals tential defendants, which discussions have ability Section with an excellent working re- and lawyers and paralegals from Cravath and continue to include the exchange of in- lationship with the firm on all levels; Swaine & Moore as needed, all for a single ∑ formation bearing on the merits of the The firm has offered concessions on bill- fee arrangement. FDIC’s claims. The investigation has re- ing for travel and expenses and also will en- ceived considerable Congressional and press Pros: tertain and has proposed an alternative fee attention. There is no insurance in this case ∑ David Boies, a nationally recognized and arrangement; ∑ and any large recovery is dependent on es- highly regarded trial lawyer, who has per- The firm would be able to provide minor- tablishing Hurwitz as a de facto director of sonally committed to handle all major as- ity participation from within, with partners USAT, establishing liability against one pects of the litigation on behalf of the FDIC; and/or associates with FDIC, although per- very wealthy outside director and tapping ∑ The firm, based both on Mr. Boies’s rep- haps not professional liability, experience; ∑ The firm has a proven record handling into a potential indemnification by Maxxam utation and the firm’s prior participation in high profile litigation on behalf of the Cor- of certain USAT directors. the Drexel case on behalf of the FDIC, would poration and, drawing on its extensive rep- As noted above, the parties are still ex- likely have an immediate impact on the liti- resentation of the lumber industry, will be changing and analyzing information related gation and perhaps increase the chances of able to cover all aspects of any potentially to the merits of the claims. While it is our early settlement, hope that we might be able to reach a pre-fil- ∑ The firm is widely regarded as aggres- unique debt for redwoods settlement ar- ing settlement and the proposed defendants sive, bright, and creative and has a dem- rangements; ∑ Potential conflicts have been reviewed have raised the possibility of utilizing some onstrated ability to cover all waterfronts in by the Outside Counsel Conflict Committee form of alternative dispute resolution, the large, highly publicized litigations; and resolved in a manner which would not current tolling agreement which expires on ∑ The firm has broad experience with secu- preclude the firm’s participation in this May 31, 1994, will not be extended. We have a rities/accounting issues, including having se- case; and significant amount of work which remains to cured highly favorable results on behalf of ∑ Firm partners who would serve on the be completed prior to the expiration of the the FDIC and RTC in the Drexel Litigation; trial team know the players, having pre- tolling agreement which requires the hiring ∑ The firm has had experience with FDIC viously litigated against counsel for certain of lead trial counsel now. issues, procedures and personnel, although of the defendants, John Villa of Williams & Thomas Manick, now a partner with the not directly with FDIC professional liability Connelly. Miami firm of Adorno & Zeder, has been inti- staff; mately involved with the investigation of ∑ Mr. Boies knows and has a good relation- Cons: these claims for over 16 months and has a ship with a key player, counsel for Hurwitz, ∑ The firm would not likely bring an im- commanding knowledge of virtually every Richard Keeton, for whom he served as suc- mediate, discernible impact upon entry into aspect of the case. The case now requires the cessor counsel in the Texaco Litigation; and the case, inasmuch as it is largely perceived addition of a sizable, nationally recognized ∑ The firm, and Mr. Boies in particular, as the ‘‘firm of choice’’ for the FDIC. The firm with securities expertise which is famil- are familiar withi Mr. Hurwitz and certain of firm is now under the FDIC mandated fee cap iar with FDIC professional liability issues his trading activities through the Drexel and projects that it will remain well under and procedures. Litigation. the cap in the future; Firms Considered ∑ Cons: Certain firm members’ active participa- The litigation, if approved, will likely be tion in MSB issues on behalf of the FHLBB ∑ filed in the Southern District of Texas. Vir- Cravath’s long-standing and substantial provides special expertise in this area, but at tually all of the qualified firms in Texas client, Salomon Brothers, although not a the cost that this history might make it dif- were conflicted, forcing us to look to firms target of the FDIC’s proposed suit, is at least ficult for the firm to bring the independent headquartered in other major metropolitan a witness in such a suit and could be named view necessary to make sound litigation risk areas. as a third party by defendants, raising cer- assessments; and We interviewed three firms: Cravath, tain potential conflict issues. We are in the ∑ The firm does not have a reputation for Swaine & Moore (New York), along with process of conducting, but have not yet com- the boldness of action or creativity which Duker & Barrett (also New York), Reid & pleted, an evaluation of other potential con- may enhance FDIC’s ability to secure an Priest (New York and Washington, D.C.), and flicts as required by the Statement of Poli- early recovery in this case. Hopkins & Sutter (Chicago and Dallas). cies Concerning Outside Counsel Conflicts of Factors which we considered important in Interest; selecting outside counsel to serve as lead ∑ No Texas presence—would have to retain RECORD 16 counsel handling the USAT Litigation are: local counsel, probably a Texas MWOLF firm 7/17/95—Phone call from——5 p.m.

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00143 Fmt 0666 Sfmt 0634 E:\CR\FM\A20DE8.366 pfrm07 PsN: E20PT1 E2482 CONGRESSIONAL RECORD — Extensions of Remarks December 20, 2001 Alan McReyolds—202–208–6318, Spec. Asst. At about the same time that we deferred IV. Updated Authority to Sue Memorandum to Sec. of Interior—Status of our potential formal approval of the FDIC cause of action, We have attached an updated authority to claims—how OTS is organized., etc? we developed a new strategy for pursuing sue memorandum for your review and con- Someone to describe * * * receiving calls these claims through administrative enforce- sideration. It sets forth the theories and our claims and FDIC almost daily from ment proceedings with the OTS. After sev- weaknesses of our proposed claims in great members OTS roles of Congress and private eral meetings with senior staff of the OTS detail. It should be considered for Board ap- citizens. Office of Enforcement, we entered into a for- proval only if the Board decides, as a matter his schedule—Nextweek—vacation;—fol- mal agreement with the OTS, who began an of public policy, that it wants the Texas independent investigation into the activities lowing week—travel. courts to decide the statute of limitations of various directors and officers of USAT, —Would really like to meet this week if at and standard of care issues rather than FDIC Charles Hurwitz, UFG, as well as USAT’s all possible. staff. The litigation risks are substantial and second tier holding company, Maxxam, Inc., —He has not spoken to Jack Smith. the probability of success is very low, but if a publically traded company that is signifi- —Would like meeting to take place this the Board were to decide that it wants to go cantly controlled by Hurwitz. week if at all possible because of his vaca- forward with the filing of a complaint, we tion and travel schedule. II. Significant Caselaw Developments Have Fur- need to be prepared to file the complaint in 7/18/95—JOT reaction—1:30 am. ther Weakened the Viability of an Inde- the Southern District of Texas, on or before, Talk to Jack Smith and Alice Goodman— pendent Cause of Action by the FDIC Wednesday, August 2, 1995. TUT’s reaction—Smith and Goodman Although we have continued to investigate We will be available to discuss this matter should be here with us. and refine our potential claims during the on very short notice. pendency of the OTS investigation, two sig- nificant court decisions and the failure of RECORD 17 Congress to address the statute of limita- RECORD 18 Memorandum To: Board of Directors, Fed- tions problems has further weakened the July 20, 1995—Meeting with T. Smith, JOT, eral Deposit Insurance Corporation. FDIC’s prospects for successfully litigating M.A. and JW. From: Jack D. Smith, Deputy General Coun- our claims in United States District Court Re: McReynolds—Kozmetsky—Hurwitz— sel. for the Southern District of Texas. ***. Stephen N. Graham, Associate Director (Op- In the recent decision of RTC v. Acton, the Jack—We will not go forward if CTS ***. erations). Fifth Circuit held that under Texas law, only If OTS does not file suit, we will have to Date: July 24, 1995. self-dealing or fraudulent conduct, and not decide our case on the merits before tolling Subject: Status of PLS Investigation, Insti- gross negligence, is sufficient to toll the expires. tution: United States Association of statute of limitations under the doctrine of Memo for G.C. to Chairman— Texas, Houston #1815. adverse domination. As a result of this opin- Updates statutes of case and recommends This memorandum reports on the status of ion, we can no longer rely on any argument that we let Kormetsky out. the continuing investigation of the failure of that gross negligence by a majority of the If suit against Hurwitz *** sue only him United States Association of Texas culpable Board is sufficient to toll the stat- and not others. (‘‘USAT’’), the separate investigation being ute of limitations. Moreover, there is very Find out if Hurwitz will talk. conducted by the Office of Thrift Supervision little, if any, evidence of fraud or self-deal- Write a memo on case status to GC. (‘‘OTS’’), current tolling agreements, settle- ing that is likely to survive a motion to dis- Ten page memo should do it. ment negotiations with United Financial miss on statute of limitations grounds. Continue telling *** or let them go. Group, Inc., (‘‘UFG’’) USAT’s first tier hold- Even if we could overcome the statute of If ordinary case, we do not believe there is ing company, and our decision not to rec- limitations problems, a recent decision by a 50% chance we will prevail. Therefore, we ommend an independent cause of action by the Texas Supreme Court announced a new cannot recommend a lawsuit. the FDIC against the former officers and di- standard of gross negligence that will be McReynolds—handle same as the Hill pres- rectors of USAT and controlling person very difficult to meet. In Transportation In- entation. Charles Hurwitz. surance Company v. Moriel, 1994 WL 246568 (Tex.), the Texas Supreme Court defined I. Background gross negligence as constituting two ele- RECORD 19 As you know, USAT was placed into re- ments: (1) viewed objectively from the stand- July 21, 1995, 11:00 McReynolds, Depart- ceivership on December 30, 1988, with assets point of the actor, the act or omission must ment of the Interior. of $4.6 billion. The estimated loss to the in- involve an extreme degree of risk, consid- surance fund is $1.6 billion. After a prelimi- ering the probability and magnitude of the nary investigation into the massive losses at potential harm to others, and (2) the actor July 21, 1995. USAT, the FDIC negotiated tolling agree- must have actual, subjective awareness of 8K acres; 3800 core Merelot Bird, Fish & ments with UFG, controlling person Charles the risk involved, but nevertheless proceed Wildlife. Hurwitz and nine other former directors and in conscious indifference to the rights, safe- Habitat conservation plan and cutting plan officers of USAT/UFG that were either senior ty, or welfare of others. This new standard with MAXXAM. Has til 9/15 to tell us about officers or directors that were perceived as will make it very difficult, if not impossible cutting plans. having significant responsibility over the to prove our claims. M called Allen at home last Thursday at 8 real estate and investment functions at the The cumulative effect of these recent ad- p.m. institution. verse decisions is that there is a very high Wilson Task Force—creative strategy for In May 1994, after a series of meetings with probability that the FDIC’s claims will not acquisition of the 3800. the potential defendants and the exchange of survive a motion to dismiss either on statute BLM considerable documents and other informa- of limitations grounds or the standard of Gov’s Office—California Resources Agen- tion, we presented a draft authority to sue care. Because there is significantly less than cy—California Fish and Game—State Park memorandum recommending that we pursue a 50 percent chance that we can avoid dis- Bird—California Coastal Conservancy. Six claims against Hurwitz and certain of the missal, it is our decision not to recommend individuals serve on task force. American former officers and directors for losses in ex- suit on the FDIC’s proposed claims. Lands Conservancy—negotiate sometimes cess of $200 million. The proposed claims in- III. Debt for Nature Swap for Interior. volved significant litigation risk, in that the Our decision not to sue Hurwitz and the Gov. Wilson—Terry Gordon—various acqui- bulk of the loss causing events occurred former directors and officers of USAT is sition strategies. more than two years prior to the date of re- likely to attract media coverage and consid- California has sections of timber to trade ceivership, and were therefore subject to dis- erable criticism from environmental groups $100 M. missal on statute of limitations grounds. In and Congress. Hurwitz has a reputation as a H values 8K at 500 M. Interior wants to light of the Fifth Circuit’s opinion in Daw- corporate raider, and his hostile takeover of deal it down. H really wants $200 M total. son, a split of authority in the federal trial Pacific Lumber has attracted enormous pub- California delegate is really putting the courts in Texas on the level of culpability re- licity and litigation because of his har- pressure on. quired to toll limitations and the Supreme vesting of California redwoods. Environ- Dallas/Ft. Worth—Base closure—Wednes- Court’s refusal to consider whether a federal mental interests have received considerable day 10:30 meeting with OTS. rule should be adopted under which neg- publicity in the last two years, suggesting Memo for Chairman. ligence by a majority of the directors would exchanging our claims for trees. We recently Frances 208–4615; Alan McReynolds 202–208– toll the statute of limitations, our strategy met with the Department of the Interior, 6308. was to assert that gross negligence was suffi- who informed us that they are negotiating cient to the toll the statute of limitations. with Hurwitz about the possibility of a debt RECORD 20 After briefings with FDIC deputies and fur- for nature swap and that the Administration ther discussion with the potential defend- is seriously interested in pursuing such a RECORD 21 ants, we decided to defer formal FDIC ap- settlement. We plan to pursue these settle- $400,000 expenses on OTS proval of our claims and continue the tolling ment discussions with the OTS in the com- Have not decided whether to bring case— agreements. ing weeks. won’t decide for some months.

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00144 Fmt 0666 Sfmt 0634 E:\CR\FM\A20DE8.369 pfrm07 PsN: E20PT1 December 20, 2001 CONGRESSIONAL RECORD — Extensions of Remarks E2483 Alan McReynolds—Admin. wants to do Hit for dismissed suit ment of Interior wants to see the property deal Hit for walking based on staff analysis of acquired. He said that the Secretary is very —Gov. Wilson w/DOI had task force of 6 70% loss if most/all on S & L aware of the fact that this is a very impor- groups. Told to find way to make it happen Likely cost $4m & $2m. tant regional issue. He explained that the —CA will trade $100 million CA timber If out early or S & L or able to slow—stay Department would like to make this a ‘‘bi- —Admin. might ?? mil. base due to OTS, lower. But no guarantees. partisan’’ effort. Very difficult to value: if survives S & L Had call from atty. appraisal on prop. for McReynolds’ Role $500m. Said they want to make a deal. Don’t largely in tact McReynolds said that he will be the ‘‘point know how much credence we have from them USAT person’’ on the project. While he claimed to about a claim. At same time telling them to When last discussed think everyone’s hope be new to the problem, he said that he had get rid of claim. He can’t cut them down. was OTS *** would avoid the fateful day already visited with the BLM in Washington If we drop suit, will undercut everything. when our principals had to decide . . . and California and that he had met with the RECORD 22 whether to sue on USAT Governor’s office concerning the matter. It Hurwitz refusal to toll wrecked that plan. was clear that he had read much of the back- USAT ATS recommends suit against Hurwitz, ground material on the subject. May recall briefed re OTS—paying some some—not all—others tolling with McReynolds is in the Secretary’s office. He months ago. OTS is making progress, but not Also states intention to let go 3 outside di- has a good reputation within the Depart- ready. Thus, tolling again. OTS staff hopes rectives OTS isn’t tolling with to have draft notice of charges to Hurwitz, et We believe USAT Ds, Os & defacts dir/o ment. al, Aug.–Sept. (Apologize for short fuse)—we Hurwitz were grossly neg in Deference to the Governor’s Office thought we would be able to put off a final (1) Lending—Park 410 McReynolds said four different times dur- decision until OTS acted. Hurwitz refused to (2) Joe’s Portfolio ing the conversation that he believes that toll. (3)UMBS Governor Wilson’s office is properly the lead Normal matter, we would close out under The problems include: for negotiations on the matter. He claimed delegated authority w/o bringing it to your— (A) S of L—Park 410, no reasonable basis that he does ‘‘not want to insult’’ the Gov- Bd’S—attention. under existing law ernor. He said that Terri Gordon will be the Joe’s . . . when liq—money at UMBS . . . However, given (a) visibility—tree people, leader of the negotiations. He is very con- $100m out, $80m to go . . . $50–$60m principal Congress and press; (b) basis is Texas S of L, cerned that meetings held in Washington, lost we thought you—Bd—should be advised of without Gordon’s attendance or at least her (B) Hurwitz is defacto dir what we intended to do—and why—before it (C) FHLB policies did encourage ‘games’ w/ assent, will create problems that will make is too late. futures & options acctg it difficult to come to an agreement. He said OTS is looking at: 1) Bad loans; incl. park Looked for other g.f. claim that he did not want to ‘‘send a signal’’ that 410; 2) MBS—Joe’s portfolio. Recommend Hurwitz—defacto D&D & con- this matter is ‘‘political.’’ UMBS trol person, breached duty of loyalty to Indeed, he said that the recent meeting among Democratic staffers created potential (3) Maxxam capital maintenance agree- USAT in failing to cause UFG, MCO fed- problems. He was acquired to explain at ment erated to honor capital maintance obliga- length the reason for the meeting to Gordon. (4) UFG tax claim, etc, agreement in prin- tions! cipal to settle subject to B C+ approval. Beats S of L The Wednesday Meeting Between Democratic $9.6m. Tough merits case [$150m] Congressional Staff and McReynolds If FDIC case—(1) Bad loan—Park 410 (4 McReynolds confirmed that neither the yrs); (2) MBS—Joe’s portfolio (21⁄2 yrs); RECORD 25 Secretary nor anyone else from Interior, met with members of Congress on Wednesday, UMBS (2–4 yrs). PATTON BOGGS, LLP, During last two years law has moved Anchorage, AK. July 12th. Instead, the meeting included var- against us in Texas. To: Joli Pecht ious staff from a few California members in- S of L: Dawson—2 yrs ago—more than ? Company: Maxxam cluding Brown and Stark. There were no Acton— this spring—more than ??? ??—Loose Fax Number: 713–267–3702 staff members from Boxer or Feinstein’s of- on Park 410.—Loose (most or all) on Total Pages Including Cover: 3 fices. He said that a letter from the members re- UMBS;—Likely loose Joe’s portfolio 70% From: John C. Martin questing a meeting prompted the Wednesday most, or all, out.. Sender’s Direct Line: 907–263–6032 meeting. He also said that a comparable re- OTS—No apparent S of L issue (except Date: August 7, 2000 quest was sent to the Department of Agri- Kozmetski**) Client Number: 5921.101 Merits: Joe’s portfolio—not unwinding, Comments: Joli, I found this memo to the culture. starting 1/187 is most likely to survive. file immediately after our conversation. I The Department’s Negative View of Riggs’ Leg- (1) Facts—3 mos earlier, S of L 1+yr later, thought you might be interested to see the islation done memo. (Note that the automatic date on our McReynolds said that BLM dislikes the ap- (2) Standard of core—gross neg. Texas—pu- system changed the date of the memo from proach taken in what he described as ‘‘Riggs’ nitive damage case—cited in intentional/ July 14, 1995 to today’s date.) bill.’’ He muttered words to the effect of, knowing * * * I’ll look for more documents as time per- ‘‘we should not exchange old growth forest Bottom line: likely to lose on S of L let it mits in the next few days. to get old growth forest.’’ go or have ct. dismiss it. John The Department’s Desire to Acquire the Prop- Redwood swap—Interior/Calif; Forests— PATTON BOGGS, L.L.P. erty Without Legislation base—FDIC/OTS claim(?) Continue to fund OTS; We’d also write Memorandum McReynolds said two different times dur- Congress re what & why rather than await- TO: File/5921.101. ing the conversation that he does not believe ing reaction mechanics: Brief Deputies; FROM: John C. Martin. that legislation is necessary to acquire the Board presentation. DATE: July 14, 1995. property. He believes that the Department SUBJECT: Conversation with Allen can acquire the property using its adminis- McReynolds. trative authority. More specifically, he said RECORD 23 I had a telephone conversation with Allen that he believes that property can be sold to CONTEXT McReynolds concerning the Department of accumulate money that could be used in the Sue by Aug 2—Kurwitz, the rest rolled toll- Interior’s approach to the Headwaters Forest acquisition. He recognizes that several ing following property matter. We talked about a number pieces of property must be sold to raise Hurwitz, insiders have tolled w/OTS of different aspects of the matter. He indi- enough money to pay for the acquisition. He Proposes: if authority ‘‘one last chance’’ cated that (i) the Department of Interior implied that the Governor’s office and the for Hurwitz to toll; not sue others wants to acquire the property, (ii) he does California Democratic delegation favor this OTS is investigating Draft Notice of not believe legislation is necessary, (iii) he approach. charges coming—staff and others believe that the transaction While he did not elaborate, he indicated Loans should be a cash agreement rather than a that he believed that a ‘‘three-way deal’’ is Joe’s Portfolio land exchange, and (iv) he believes the Gov- the appropriate approach. He said that Terri UMBS ernor’s office should take the lead in nego- Gordon is working with the American Land New worth maintance: [UFG] toll Maxxam tiations on the subject. The following sum- Conservancy on the subject. Redwoods—‘Headwaters marizes the information and comments he Potential Meeting Press, environmentalists Congress follow provided. McReynolds said that he would be pleased Interior trying to find a deal (Legislation to The Department’s Desire to Acquire the Prop- to meet with us along with Terri Gordon. He achieve) erty suggested that, if we are so inclined, we Delima (why they get paid the big bucks— McReynolds said several times during the could set a meeting with Gordon either here take: course of the conversation that the Depart- or in Sacramento. He suggested that we

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00145 Fmt 0666 Sfmt 0634 E:\CR\FM\A20DE8.373 pfrm07 PsN: E20PT1 E2484 CONGRESSIONAL RECORD — Extensions of Remarks December 20, 2001 schedule the meeting for some time after he Bruce Rinaldi OTS (Enforcement). Supervision; John M. Lane, Manager, Special returns from his one-week vacation. Situations and Applications Section I, Office CC: Thomas H. Boggs, Jr. RECORD 27 of Supervision and Applications, Operations Donald V. Moorehead Branch, Division of Supervision; John F. TRANSCRIPT OF A MEETING OF THE BOARD OF Aubrey A. Rothrock Carter, Manager, Special Situations and Ap- DIRECTORS OF THE FEDERAL DEPOSIT INSUR- plications Section II, Office of Supervision ANCE CORPORATION HELD IN THE BOARD and Applications, Operations Branch, Divi- RECORD 26 ROOM, FEDERAL DEPOSIT INSURANCE COR- sion of Supervision; Bobby L. Hughes, Chief, PORATION BUILDING, WASHINGTON, DC OTS/FDK Meeting July 26, 1995 at 10:50 a.m. Case Management Section, Office of Assisted (CLOSED TO PUBLIC OBSERVATION—AUGUST 1, J. Smith Acquisitions (FRF), Operations and Agree- 1995; 10:05 A.M.) Hurwitz won’t sign tolling agreement with ment Management Branch, Division of Reso- At 10:05 a.m. on Tuesday, August 1, 1995, lutions; Marilyn E. Anderson, Senior Coun- FDIC. Need to file lawsuit by August 2. the Board of Directors of the Federal Deposit J. Thomas—Chance of success on State sel, Professional Liability Section, Litiga- Insurance Corporation met in closed session tion Branch, Legal Division; Thomas L. limitations is 30% or less. in the Board Room of the FDIC Building lo- —Will continue discussions with Helfer. Holzman, Counsel, Corporate and Special cated at 550 17th Street, NW., Washington, Litigation Section, Litigation Branch, Legal —Pressure from California congressional DC, to consider certain matters which it delegation to proceed Division; Jeffrey R. Williams, Counsel, Pro- voted, pursuant to subsections 552b(c)(4), fessional Liability Section, Litigation Dept. of Interior—Alan McReynolds (c)(6), (c)(8), (c)(9)(A)(ii), (c)(9)(B), and (c)(10) Branch, Legal Division; Richard B. Foley, of Title 5, United States Code, to consider in —Administration interested in resolving Senior Attorney, Resolutions Section, Su- case and getting ***. a meeting closed to public observation. Ricki Helfer, Chairman of the Board of Di- pervision and Legislation Branch, Legal Di- —Pete Wilson has put together a multi- vision; Robert J. DeHenzel, Senior Attorney, game fish group rectors; Andrew C. Hove, Jr., Vice Chairman of the Board of Directors; Stephen R. Professional Liability Section, Litigation —California would put up $100 million of Branch, Legal Division; Jeffrey P. Bloch, California timberland Steinbrink, acting in the place and stead of Eugene A. Ludwig, Director (Comptroller of Senior Attorney, Resolutions Section, Su- —Hurwitz wants a military base The pervision and Legislation Branch, Legal Di- Dalles and find work—suitable for commer- the Currency); Jonathan L. Fiechter, Direc- tor (Acting Director, Office of Thrift Super- vision; Wendy B. Kloner, Senior Attorney, cial development Corporate and Special Litigation Section, —Hurwitz also wants our claims settled as vision); Leslie A. Woolley, Deputy to the Chairman for Policy; William A. Longbrake, Litigation Branch, Legal Division; Marilyn part of the deal R. Kraus, Audit Manager, Assistance Agree- Two weeks ago—Hurwitz’ lawyer called Deputy to the Chairman for Finance and Chief Financial Officer; Roger A. Hood, Dep- ment Audit Branch, Office of Inspector Gen- Terri Gordon at home and told him he should uty to the Vice Chairman; Walter B. Mason, eral; Lars S. Viitala, Senior Tax Accountant, not be tuned out by $500 million appraisal. Jr., Deputy to the Director (Office of Thrift Tax Unit, Office of Assisted Acquisitions What is OTS’ schedule? How comfortable is Supervision); Stephen L. Ledbetter, Special (FRF), Operations and Agreement Manage- OTS with giving info to Interior Assistant to the Deputy to the Chairman and ment Branch, Division of Resolutions; Gar- R. Stearns Chief Operating Officer; James D. LaPierre, field Gimber, III, Examination Specialist, Tolling Agreement extended until Decem- Special Assistant to the Deputy to the Planning and Program Development Section, ber 31, 1995 with 30-day kickout beginning Chairman and Chief Operating Officer; Operations Branch, Division of Liquidation; September James Phillip Battey, Assistant to the Mark C. Randall, Ombudsman, San Fran- cisco Region, Division of Depositor and Asset *** Chairman for Public Affairs; Stanley J. Pol- ing, Assistant to the Deputy to the Chair- Services; and Regena S. McMillian, Oper- 16 witnesses in June including Hurwitz man for Finance; Diane Page, Assistant to ations Assistant, Record Services Group, Op- working on 2d draft of NOC the Deputy to the Director (Comptroller of erations Unit, Operations Assistant, Record K. Guido the Currency); William F. Kroener, III, Gen- Services Group, Operations Unit, Operations —MBS Case Summary eral Counsel; Paul L. Sachtleben, Director, Section, Office of the Executive Secretary, —We have done a $$ analysis of what we Division of Compliance and Consumer Af- were present at the meeting. think we can claim in NOC fairs; Robert H. Hart-heimer, Director, Divi- Chairman Helfer presided at the meeting; Mr. Langley acted as Secretary of the meet- B. Rinaldi sion of Resolutions; Steven A. Seelig, Direc- tor, Division of Finance; John F. Bovenzi, ing. —Net Worth Case Summary Director, Division of Depositor and Asset PROCEEDINGS Negotiating with UFG regarding settle- Services; Carmen J. Sullivan, Ombudsman; Chairman Helfer: I’m pleased to call this ment of net worth claim Jerry L. Langley, Executive Secretary; Alice morning’s meeting to order. May I have a Looking at Maxxam C. Goodman, Director, Office of Legislative Sunshine motion? J. Williams Affairs; James A. Renick, Senior Deputy In- Vice chairman Hove: Make a Sunshine mo- (1) Need copies of Tranx—copies of disk- spector General; Jack D. Smith, Deputy Gen- tion. [I move that the Board of Directors de- ettes eral Counsel, Litigation Branch, Legal Divi- termine that Corporation business requires (2) Send documents’ exhibits to J. Williams sion; Eric J. Spitler, Deputy Director, Office its consideration of the matters which are to —Cover letter to Jeff—sharing and assist- of Legislative Affairs; John V. Thomas, As- be the subject of this meeting on less than ance under statutue sociate General Counsel, Professional Liabil- seven days’ notice to the public; that no ear- Duffy—Where is he? ity Section, Litigation Branch, Legal Divi- lier notice of this meeting was practicable; —Need to get together with Duffy and sion; A. David Meadows, Associate Director, that the public interest does not require con- Hargett Operations Branch, Division of Supervision; sideration of the matters which are to be the USAT/UFG Value of Claims Paul M. Driscoll, Associate Director, Oper- subject of this meeting in a meeting open to ations and Agreement Management Branch, public observation; and that these matters Net Worth Maintenance Obligations UFG/ Division of Resolutions; Stephen N. Graham, may be considered in a closed meeting pursu- MAXXAM & Federated [REDACTED] (T 76/ Associate Director (Operations), Operations ant to subsections 552b(c)(4), (c)(6), (c)(8), 73). Branch, Division of Depositor and Asset (c)(9)(A)(ii), (c)(9)(B), and (c)(10) of Title 5, Reckless Speculation In Mortgage Backed Services; Thomas A. Schulz, Assistant Gen- United States Code.] Securities. eral Counsel, Corporate and Special Litiga- Chairman Helfer: And a second. Unsafe and Unsound Loans to Affiliated tion Section, Litigation Branch, Legal Divi- Director Fiechter: Second. Parties (including Cost of Funds @ 9%). [RE- sion; Henry R.F. Griffin, Assistant General Chairman Helfer: All in favor? DACTED] Counsel, Resolutions Section, Supervision Vice Chairman Hove: Aye. Sub Total Cost of Funds from December 31, and Legislation Branch, Legal Division; Director Fiechter: Aye. 1988 to Present (71⁄2% Cof FDIC). Mr. Steinbrink: Aye. Jesse G. Snyder, Assistant Director, Office of Total Residual Value of Park 410. Chairman Helfer: Redacted by Committee Supervision and Applications, Operations OTS/FDIC Meeting on July 26, 1995 on Resources. Branch, Division of Supervision; Gerald B. Mr. Walton: Redacted by Committee on Bryan Veis OTS (Enforcement). Stanton, Assistant Director (Assisted Acqui- Resources. Paul Leiman OTS (Enforcement). sitions (FRF)), Operations and Agreement Chairman Helfer: Redacted by Committee Jeffy Williams FDIC Legal. Management Branch, Division of Resolu- on Resources. Ken Guido OTS (Enforcement). tions; M. Lauck Walton, Assistant General Director Fiechter: Redacted by Committee John V. Thomas FDIC PLS. Counsel, Professional Liability Section, Liti- on Resources. Rick Stearns OTS (Enforcement). gation Branch, Legal Division; Patti C. Fox, Vice Chairman Hove: Redacted by Com- Jack Smith FDIC. Assistant Executive Secretary; John H. mittee on Resources. Bob Dettenzel FDIC PLS. Hatch, Assistant Inspector General, Office of Mr. Steinbrink: Redacted by Committee on Marilyn Anderson FDIC PLS. Supervision and Resolutions Division Audits, Resources. Thomas Hecht Hopkins & Sutter. Office of Inspector General; Susan E. Carroll, Chairman Helfer: Redacted by Committee John Rogers Hopkins & Sutter. Special Assistant to the Director, Division of on Resources.

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00146 Fmt 0666 Sfmt 0634 E:\CR\FM\A20DE8.375 pfrm07 PsN: E20PT1 December 20, 2001 CONGRESSIONAL RECORD — Extensions of Remarks E2485 Mr. Walton: Redacted by Committee on This is, of course, a very visible matter. It Mr. Thomas: It might have some marginal Resources. is visible for something having no direct re- benefit but I don’t think it would make a Chairman Helfer: Redacted by Committee lationship to this case, but having some indi- large difference. I think the reality is that on Resources. rect relationship. Mr. Hurwitz, through FDIC and OTS staff have worked together, Vice Chairman Hove: Redacted by Com- Maxxam, purchased Pacific Lumber. Pacific expect to continue to work together, and so, mittee on Resources. Lumber owns the largest stand of virgin red- I don’t think it would have a major impact. Chairman Helfer: Redacted by Committee woods in private hands in the world, the It might make some difference, but I think on Resources. Headwaters. That has been the subject of particularly any effort to resolve this with— Director Fiechter: Redacted by Committee considering—considerable environmental in- with—a solution that involves the redwoods on Resources. terest, including the picketing downstairs of would be extremely difficult. The FDIC Chairman Helfer: Redacted by Committee a year or so ago. It has been the subject of would have to be involved whether we au- on Resources. Congressional inquiry and press inquiry. So thorize suit or not. And so you—you’re talk- Vice Chairman Hove: Redacted by Com- we assume that whatever we do will be visi- ing about a marginal difference. mittee on Resources. Director Fiechter: Redacted by Committee ble. Chairman Helfer: On the—the—basically, Interior, you should also be aware—aware, on Resources. as I understand the—the Fifth Circuit’s judg- Mr. Steinbrink: Redacted by Committee on the Department of Interior is trying to put ments about Texas law, they essentially say Resources. together a deal to get the headlines [sic] that the statute of limitations begins run- Chairman Helfer: Redacted by Committee trade property and perhaps our claim. They ning at the point at which the conduct took on Resources. had spoken—they spoke to staff a few days place; that it’s complained about, even Mr. Walton: Redacted by Committee on ago about that and staff of the FDIC has in- though those individuals who were in control Resources. dicated that we would be interested in work- of the institution and committed the con- Chairman Helfer: The—second memo- ing with them to see whether something’s duct would not have been likely to sue them- randum with respect to a professional liabil- possible. We believe legislation would ulti- selves— ity suit involves United Savings Association mately be required to achieve that. But Mr. Thomas: That’s correct. of Houston, Texas. Mr. Thomas. again, if it’s the Board’s pleasure, we would Chairman Helfer: —on behalf of the insti- Mr. Thomas: I will try to be brief but I at least try to find out what’s happening and tution. And that the theory of adverse domi- won’t be able to be quite that brief. With me pursue that matter and make sure that noth- nation is that, during that period when the today are Marilyn Anderson, Senor Counsel ing goes on we’re not aware of—we’re not individuals in control were unlikely to sue in section, and Jeff Williams and Bob part of. themselves because of their misconduct or DeHenzel, who will be called upon if there This is a difficult case. Redacted by Com- their gross-negligence as the case may be, are hard questions. mittee on Resources. that courts in some jurisdictions have recog- Chairman Helfer: Good, we’re glad you Chairman Helfer: Under adverse domina- nized the tolling of the statute of limita- have help. tion. tions. That is, the tolling of the commence- Mr. Thomas: Well, after the first one I’m Mr. Thomas: Redacted by Committee on ment of the period when the statute of limi- not sure I’ll need any. Resources. tations will run, until that point at which Vice Chairman Hove: Don’t be so sure of Chairman Helfer: Are there questions? the institution’s no longer under adverse that. Director Fiechter: One comment. I’m told domination. Chairman Helfer: You’ve got to watch by our Enforcement staff that they will be Mr. Thomas: Right. those attorneys, don’t you? making a recommendation to me sometime Chairman Helfer: But that Texas law has Mr. Thomas: The memorandum that we in mid to late September, but don’t have one been interpreted to the contrary. have before us today seeks authority to sue at present, as to how we might proceed. Mr. Thomas: (Redacted by Committee on Charles Hurwitz as a de facto director and of- Vice Chairman Hove: Because I’m curious Resources). ficer of United Savings Association of Texas, to know what happens, if we choose not to Chairman Helfer: But as to one of the or USAT, also as a control person of that en- pursue this, with the OTS claim and— claims, you believe there is a reasonable ar- tity, and it also seeks authority to sue three Mr. Thomas: It—it would have no direct af- gument that you can get beyond that issue. insiders of USAT. The claim is based on—the fect on the OTS claims. Mr. Thomas: (Redacted by Committee on case will be based on three claims, the first— Vice Chairman Hove: Okay. Resources). (Redacted by Committee on Resources). Mr. Thomas: They have tolling agreements Chairman Helfer: But they have a con- Chairman Helfer: So if suit is not in—if in place with—with all four of these gentle- tinuing obligation, however, one could argue, we—if we don’t authorize suit today and suit men and those tolling agreements would not on the part of the bank to reexamine these is not brought tomorrow, all these claims be off—are not affected by—by our action investments on a regular basis. And that’s are lost. one way or the other. the theory behind all of our judgments about Chairman Helfer: As I understand it, the Mr. Thomas: To the FDIC. banks having sufficient controls in place to other three have agreed to tolling agree- Staff has conducted an extensive investiga- make a judgment about whether their con- tion. We spoke to them a few days ago. I ments— Mr. Thomas: Right. tinuing stewardship of the institution can be know they intended to speak to Director justified on safety and soundness grounds. Fiechter in the interim. I hope they were Chairman Helfer:—with the FDIC. Mr. Thomas: And we wound not sue them Mr. Thomas: (Redacted by Committee on able to do that. They are preparing a draft Resources). notice of charges, but no decision has been tomorrow. Chairman Helfer: Okay. And that it’s—to Chairman Helfer: Given the problems with made by the director—at least none had been Hurwitz who has not agreed, although he has the adverse domination interpretation of the made as of last week, I assume it’s still agreed to a tolling agreement with the OTS. Fifth Circuit, I take it, it would be—it would true—on whether to bring all or any portion Mr. Thomas: That’s correct. be advantageous to salvage some aspects of of that claim. Chairman Helfer: And therefore, you’ve these—these theories if—if that were pos- The Board must decide today whether to asked the Board to take a look at—at all of sible. bring this claim. The reason we must decide the—the body of the case and all of the pro- Mr. Thomas: (Redacted by Committee on today is that Charles Hurwitz declined to ex- spective defendants, but would propose to Resources). tend the tolling agreement with us. He ex- bring suit only against Hurwitz, if he fails to Chairman Helfer: I’m sorry, what’s a Rule tended the tolling agreement with OTS, but provide the appropriate tolling agreement by 11 motion? he did not extend the tolling agreement with noon tomorrow. Mr. Thomas: For sanctions for bad faith the FDIC. So we must sue tomorrow, if we Mr. Thomas: Yep. We’re—we’re seeking au- pleading. are to sue unless, if suit is authorized, he thority on the mort—on both the mortgage- Chairman Helfer: Uh-huh. agrees to a tolling agreement. What we backed securities claims to sue all four peo- Mr. Thomas: (Redacted by Committee on would propose to do, unless the Board be- ple so—Redacted by Committee on Re- Resources). lieves we should do otherwise, if suit is au- sources. Chairman Helfer: I see. So you’re not rec- thorized, we would call Mr. Hurwitz’ counsel Chairman Helfer: So if suit is not in—if ommending bringing that claim. and advise that we will sue unless we have a we—if we don’t authorize suit today and suit Mr. Thomas: (Redacted by Committee on tolling agreement in hand by noon tomor- is not brought tomorrow, all these claims Resources). row. We do not know whether he would sign are lost. Chairman Helfer: How much had they lost? that agreement or not. And we certainly Mr. Thomas: To the FDIC. Mr. Thomas: I don’t know the answer to would not—we would urge the board not to Chairman Helfer: To the FDIC. the question but it was not a disaster. When approve this on the assumption that he will Mr. Thomas: Any recov— they put in the additional $80 million, they sign the tolling agreement, but we think Chairman Helfer: The OTS is separate. were not putting money into an entity that there is a realistic possibility that he may. Mr. Thomas: That’s right. And any recov- was insolvent or close to insolvent. And be- We would make that recommendation be- eries by OTS would come to the FDIC. cause— cause the statute of limitations problems are Chairman Helfer: Are the—does the FDIC’s Chairman Helfer: Is that the standard for serious enough. We’d rather not raise them if authorization to sue enhance the prospect— gross negligence? we can avoid that without injuring our posi- prospects for a settlement on a variety of Mr. Thomas: (Redacted by Committee on tion. issues associated with the case? Resources).

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00147 Fmt 0666 Sfmt 0634 E:\CR\FM\A20DE8.378 pfrm07 PsN: E20PT1 E2486 CONGRESSIONAL RECORD — Extensions of Remarks December 20, 2001 Chairman Helfer: Are there any other com- Chairman Helfer: (Redacted by Committee Chairman Helfer: No. From you? ments or questions? on Resources). Vice Chairman Hove: [No] Director Steinbrink: I—I had one very gen- Mr. Thomas: (Redacted by Committee on Chairman Helfer: No. eral question to get your opinion on. If—if Resources). Director Fiechter: [No] we bring this litigation and—and the courts Chairman Helfer: To summarize, you’re Chairman Helfer: No. Can the chair make a follow the trend they’ve been doing and—and recognizing—you—you’re recommending motion? slap us, does that in any way impact the that the Board authorize the suit. You are Mr. Langley: Bill says, yes, the chair can OTS’s case, in your opinion? indicating that the pleadings would su— make a motion. Mr. Thomas: (Redacted by Committee on would withstand a Rule 11 motion. Chairman Helfer: Okay. I’m going to make Resources). Mr. Thomas: They should. I—I don’t war- a motion to pursue this suit in this case. Is Chairman Helfer: But that’s simply trying rant that they will, but I warrant that they there a second to the motion? the OTS case ahead of the OTS case. should. The difference is the District Courts Mr. Steinbrink: I’ve never seen this before. Vice Chairman Hove: Um-huh. in the Fifth Circuit. Chairman Helfer: We still can vote on the Mr. Thomas: That’s—that’s right. And— Chairman Helfer: (Redacted by Committee merits of this, you all. I think we should Chairman Helfer: That’s the issue that on Resources.) have a recorded vote. So I ask for a second to would be presented. Mr. Thomas: I’m not going to argue that my motion so we can have a recorded vote on Mr. Thomas: That’s right. It—it would be there is a better than 50 percent chance of whether to institute suit. very unlikely this case would go to trial on recovery in this case. But it is—we—we’re Vice Chairman Hove: A question; clarifica- the merits before an OTS matter went for- not talking about a 5 [percent] or 10 percent tion? ward, assuming it’s going to go forward be- case. We think the statute of limitations Chairman Helfer: Yeah? fore the tolling agreements at the end—the issue is about 70 percent against us on the Vice Chairman Hove: Can a motion be sec- end of this year. mortgage-backed securities claims. We think onded and then voted against the motion? Vice Chairman Hove: How much do we the claims on the merits are roughly 50/50. Chairman Helfer: Can the person who sec- spend in—in this case before we know about Director Fiechter: So what is the math onds the motion vote against it? the mortgage-backed security issue, John? here? We would have spent $4 million to go Mr. Langley: Yes. Mr. Thomas: There’s good news and there’s to trial, $2 million in trial. And they had a— Vice Chairman Hove: I will second. bad news. If we plead it well and argue it what is the likely probability of the settle- Chairman Helfer: Yes. All right, all in well, we may get to spend a lot. If—if—if it ment and the chance that we’ll collect? favor of inst—of the staff’s recommendation goes out on a—on a early motion, then that Mr. Thomas: Well, if you want to multiply to authorize suit in this case. Please record would control—it would contain the cost. the math out, and, unlike most of our cases, that the chair votes, yes. All opposed to in- But we’re—we’re certainly going to try to I think this is one where they are relatively stituting suit in this case? plead it to keep it in, if we go forward with independent variables; most of them, I think, Vice Chairman Hove: Aye. this. It would—and, if we succeed, it would are highly dependent and when you start Director Fiechter: Aye. come down to a fact question for the jury at multiplying them together, you get a silly Mr. Steinbrink: I think that I would defer trial, as to whether the statute of limita- result. But here, 35 percent would not be an to the chair in this case and, in the first re- tions had run before— unrealistic expectation in terms of this—a quest, vote with the chair. Chair Helfer: That’s a fact question— substantial verdict being returned here. And Chairman Helfer: Okay. So that would be a Mr. Thomas: Well, in— if we get past the summary judgment mo- two to two vote and I assume that that Chairman Helfer: —not a law question? tions, our estimate is that the case would would not authorize suit in the case. Is that Mr. Thomas: —in terms of when the ac- have between—(redacted by Committee on correct? tions took place. If—one of the—if—if we can Resources)—settlement value. But it is ex- Mr. Langley: Right. That’s correct. play it out that far. We’re not—you know, I tremely difficult to value a case of this size Chairman Helfer: All right. think there’s a— and a case with these risks, because they’re Director Fiechter: Well, then, we want to Chairman Helfer: Isn’t it much more likely unlike a D&O case where you have $10 mil- revisit it? that it would be resolved on a motion to dis- lion in net worth and a claim for $4 million. Mr. Steinbrink: Talk some more about it. miss? There is no market. There—there aren’t a lot Director Fiechter: As I un— Mr. Thomas: Yeah. Or—or a motion for of cases like this. Those are our best guesses. Chairman Helfer: Then I think we have to summary to— If—if you work through the math, the low have a motion to reconsider the matter by Chairman Helfer: If it were going to be end of that would be—(Redacted by Com- someone who voted against. resol— mittee on Resources). Director Fiechter: I make the motion that Mr. Thomas: Yes. Or a motion for sum- Chairman Helfer: Are there any other com- we reconsider it. mary. Well, either one. ments or questions? May I have a motion to Chairman Helfer: And a second. Chairman Helfer: Sorry—or a motion—ei- accept the staff’s recommendation to author- Mr. Steinbrink: I will second. ther one, actually. ize the institution of a professional liability Director Fiechter: (Unclear). Mr. Thomas: Yeah. I think that’s the like- suit against certain former directors and of- Chairman Helfer: All right. ly— ficers of United Savings Association of Hous- Vice Chairman Hove: A first. Director Fiechter: What will the outlay be? ton, Texas? Anyone want to make the mo- Director Fiechter: Can the Board members I mean, I think you mentioned $6 million to tion? voting in favor give me a sense of— go all the way. Director Fiechter: I take it this is up or Mr. Steinbrink: Well, I mean— Mr. Thomas: I would assume if it—well, if down if tomorrow— Director Fiechter: —it’s the expenditure we keep in the claim for failing to have the Chairman Helfer: Yeah. It’s up or down. of—we’re assuming—what, John?—several other institutions honor their net worth Director Fiechter: —it runs. million dollars to figure out how far we go maintenance agreements, presumably the Chairman Helfer: It’s up or down. I think on this? litigation would continue for some time. I you’re saying that there is a high probability Mr. Thomas: Let’s—let’s talk through that imagine we’re committed to spending at that, on one of the claims, the claim will not a little bit. We’ve spent $4 million so far on least half a million dollars and quite pos- go forward on statute of limitations grounds. this matter. And part of that— sibly most or all of $4 million to get to trial, There is a lower probability—there is a high Chairman Helfer: I’m sorry, how much? if we go forward. probability that the other claim will go for- Mr. Thomas: Four million dollars so far on Chairman Helfer: On that claim. ward despite statute of limitations claims. this matter, approximately. Mr. Thomas: On— That the chances of recovery on the merits Director Fiechter: I was told by our staff Chairman Helfer: The question I think was, on the first claim are very high. The chances that we’re taking advantage of—of your $4 what about that claim that’s resolved on a of recovery on the merits on the second million— motion to dismiss or a summary judgment claim are a bit lower. The probability of a Mr. Thomas: Yes. motion? high recovery, should the case go forward on Director Fiechter: —of the—there’s value— Mr. Thomas: (Redacted by Committee on the merits, is significant, but that has to be Mr. Thomas: There are—there are— Resources). offset against the difficulties with respect to Director Fiechter: —from our perspective. Chairman Helfer: (Redacted by Committee one of the claims on statute of limitations Mr. Thomas: —there are—three different on Resources). grounds. Have I summarized? areas of value for the money that’s been Mr. Thomas: (Redacted by Committee on Mr. Thomas: It has to be offset against the spent.—(Redacted by Committee on Re- Resources). statute of limitations risk on the better sources). Chairman Helfer: (Redacted by Committee claim, the more conventional claim, and the A significant amount of money has been on Resources). difficulties in proving the merits of the—(Re- spent over the last year, both in trying to Mr. Thomas: (Redacted by Committee on dacted by Committee on Resources). make sure we know where we stand and in Resources). Chairman Helfer: All right. Is there a mo- working with OTS to—instead of making Chairman Helfer: (Redacted by Committee tion to accept—accept the staff’s rec- them relearn everything, give them the in- on Resources). ommendation to proceed with suit in this formation we have in a meaningful, useful Mr. Thomas: (Redacted by Committee on case? way; help them work through what they’re Resources). Mr. Steinbrink: [No.] doing; pay for the consultants they’re using.

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00148 Fmt 0666 Sfmt 0634 E:\CR\FM\A20DE8.381 pfrm07 PsN: E20PT1 December 20, 2001 CONGRESSIONAL RECORD — Extensions of Remarks E2487 We would expect there to be overlap, if both Mr. Thomas: (Redacted by Committee on Mr. Thomas: They—the restitution claims this claim and the OTS claim go forward, Resources). are really a right to recover money for the par—in parallel, and that’s another question. Chairman Helfer: It obviously would have benefit of the person who’s been injured. And Both whether we would want that to happen, been helpful to have worked with the OTS all that’s—that’s really the argument. Is it assuming tha—that Hurwitz says, okay, sue along so that we weren’t presented at the OTS’s right to recover the money and then me. And we’d have a question of where the point of the running of the statute—of the have it go to the right people? Or is it really courts would—if we say our—we—we’d like tolling of the tolling agreements with this the victim’s rights and OTS is the entrance to stay this whole matter until OTS’s matter dilemma of not knowing whether the merits through—through which collection is—is is resolved. Suppose at—at the end of the of the claims are going to be separately pur- achieved. And I don’t think there’s a—there year OTS brings a claim, assuming that for sued. isn’t an answer that I’m aware of. purposes of talking through what will hap- Mr. Thomas: It—we’ve been working ac- Chairman Helfer: But I thought our argu- pen, we might very well say we would rather tively with them for over a year. We had ment all along was that the OTS has a sepa- agreed among ourselves that we would—both stay our claim and let OTS resolve this in- rate right. That this isn’t a subterfuge to get FDIC and OTS had agreed we would only ex- stead of having the same case go on two fo- around the FDIC statute of limitation prob- tend the tolling agreements with people if rums. The court might or might not let us do lems. That is has separate legal rights and they agreed to extend them with both. None that. It—we would sort of make that argu- separate injuries that it can seek payment of us realized until about 10 days ago, 13 days for. ment and if Hurwitz joined in it, we have a ago, that there was even an issue as to Mr. Thomas: They have separate legal better chance. But there’s no guarantee we’d whether Hurwitz was going to sign a tolling rights, but whether it’s a separate injury is be allowed to do that. If that happened, we agreement, because they had extended them a real question. But let me—let me frame the would hold our costs down. If they go for- several times. OTS staff ultimately reached ward in parallel, there will be some signifi- what—the only possible conclusion. They question just a little bit differently. Suppose cant overlap between the cost of this litiga- were not prepared to—to make a final rec- the FDIC settled with Hurwitz, gave him a tion and cost which we would otherwise— ommendation, so they had to accept tolling general release, and then OTS proceeded Chairman Helfer: But we do not know with Hurwitz and not—even though he against Hurwitz on exactly the same claims whether the OTS is going to bring suit. wouldn’t toll with us. They—you know, any- and got a restitution order. Would he be able Mr. Thomas: That’s correct. thing else would have been self-defeating. to say, I’ve already settled with the person Chairman Helfer: That’s the problem with That’s how we got into this and I can only who’s getting this money. I don’t have to this analysis. apologize to the Board for it. pay. That’s the question. If you give a—be- Mr. Thomas: That’s correct. Director Fiechter: So can you help me out? cause if we dismiss with prejudice, we’d be Chairman Helfer: If we knew— Would our agreeing to sue Hurwitz now— putting ourselves essentially in that same Mr. Thomas: That’s part— that wouldn’t necessarily be ‘‘us’’ the FDIC, position. Chairman Helfer: —that, we could take hedging our bet in terms of whether or not Chairman Helfer: And—all right, then let that into account. OTS decides to sue in two months. You’re me carry the argument further. What if we Mr. Thomas: Yeah, That’s part of why I— suggesting that it might complicate— didn’t institute suit in this case? The OTS I didn’t go through this discussion earlier— Mr. Thomas: Sue— brings it and then Hurwitz says, this is a— Chairman Helfer: Um-huh. Director Fiechter: —the process if we Mr. Thomas: —because it is very problem- this is a restitution claim for the deposit in- didn’t pursue a parallel effort— atic. Not very problematic; it’s an unknown. surance funds. The institution that is re- Mr. Thomas: Bri— sponsible for managing the funds has—has If we—(Redacted by Committee on Re- Director Fiechter: —for the nest couple of sources). decided not to bring the claim. Therefore, years? the OTS doesn’t have any right to seek res- Chairman Helfer: I guess I don’t under- Mr. Thomas: Bringing the suits, I don’t titution for the deposit insurance fund. stand your analysis. We can dismiss with think, compromises OTS’s ability at all. The prejudice. We can seek a dismissal with prej- Mr. Thomas: We think that’s a lose. only question that I—that I see is one the Chairman Helfer: Well, I don’t—I—I don’t udice of our claims at any point— Chairman raised. If we said, all right, OTS quite understand why you’re so sure one may Mr. Thomas: That’s correct. has brought a parallel case. It makes sense be a winner and this one—you’re so sure this Chairman Helfer: —at any point that the to us to stop this. The court won’t simply one is a loser— OTS decided to proceed— stay it. Hurwitz won’t agree to a dismissal Mr. Thomas: Wh— Mr. Thomas: We could certainly do that. without prejudice or to a dismissal without Chairman Helfer: —in the Fifth Circuit Chairman Helfer: —if it decided to proceed. prejudice to OTS as an express preservation which has— And— of our right to—to restitution in the OTS Mr. Thomas: Yeah. Mr. Thomas: Wh— claim. Then we have the—the question, Chairman Helfer: —not been recently very Chairman Helfer: And how many courts which is unresolved, whether we could sim- can say, no, you can’t dismiss your claim favorable to the FDIC. ply dismiss the case with prejudice, save the Mr. Thomas: What—that I’m sure about— with prejudice. ‘‘With prejudice’’ meaning additional costs, and if—if doing that that it resolves the matters for all time and on the question of what happens if we dis- would—would leave some risk of whether we miss with prejudice is I don’t know an an- we cannot bring the suit again later. could collect for restitution. And as I say, I Mr. Thomas: We—we’d have to—to look at swer and I don’t think there is a definitive don’t believe there are any cases that actu- answer that says we’re okay. I—that—I whether there’s any case law and I suspect ally address that issue. I—because I know we mean, it’s not that I’m confident we would the answer is no. We’d have to take a risk, in talked about it from time to time in other lose that argument, it’s that—I—I simply terms of dismissal with prejudice, whether contexts and no one, in any—any of the regu- need to alert you. I—I think there is an issue that would prejudice our rights for restitu- lators that I’m aware of has ever seen a there if we dismiss with prejudice. We’d have tion. I don’t know the answer to that ques- case—we haven’t seen a case that addresses to figure out whether that would prejudice tion. I haven’t really addressed the question. that issue. Arguments can be made on both our claim and—and that’s—that would likely Chairman Helfer: The rights for restitu- sides. tion, however, relate to a contractual agree- Chairman Helfer: Why does the case get to be a risky issue, because it’s unsettled. ment with the OTS, don’t they? presented if the OTS has a recovery? And we Chairman Helfer: I—I just don’t under- Mr. Thomas: (Redacted by Committee on have an agreement with the OTS that they stand why our failure to pursue this claim Resources). will restore—because we’re, after all, cur- doesn’t give rise to that argument to stop Chairman Helfer: There—there is no ben- rently paying the OTS’s cost for pursuing the OTS from proceeding to a claim that efit to proceed with the case either from the the matter and we have an agreement with seeks restitution for the deposit insurance court’s perspective or from the defendant’s the OTS that if there’s a recovery we—this fund. perspective, should we seek to dismiss out recovery will go into the bank insurance Mr. Thomas: They can certainly make that our claims with prejudice. And— comp—funds. Whose—whose—whose right is argument. I—I don’t remember any case Mr. Thomas: As long—as long as we’re it to complain? that’s definitely decided that, but I know it’s willing to dismiss them with prejudice— Mr. Thomas: The—the way it would arise is been argued about. But I don’t— Chairman Helfer: That’s point one. Hurwitz and the other defendants would Director Fiechter: Isn’t there parallel Mr. Thomas: —that’s— argue that OTS’s claim is for restitution, the cases, or cases where we would have pursued Chairman Helfer: Point two, as to the— restitution flowing back to the FDIC. And if it for the benefit of you or the RTC? the—the issue of whether it pre—prejudices we have dismissed with prejudice, then they Mr. Thomas: The—I don’t remember any our restitution, if we’re seeking a dismissal would argue that that covered our right to that actually have gotten to a point where with prejudice because we’ve become con- re—recover at any forum. and I would argue the claim had expired and money was trans- vinced that the statute of limitations prob- the contrary. But I think that it’s—it’s not ferred, that weren’t settled. lems are overriding and that the claims will something I—that I could give— Vice Chairman Hove: John, a point of clar- be separately pursued and the deposit insur- Chairman Helfer: But I thought the FDIC— ification, are—is this suit from deposit insur- ance funds will have the recoveries which the OTS— ance funds or is this for the FSLIC resolu- they are due on the merits, then I don’t un- Mr. Thomas: —you a clear opinion on. tion fund? derstand why that would pre—prejudice the Chairman Helfer: —has a separate right to Mr. Thomas: The FSLIC resolution fund. restitution—ability to get restitution as to sue—and a separate—separate injuries to Vice Chairman Hove: Thank you. I—it did both claims. seek recovery on. not make a difference—

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00149 Fmt 0666 Sfmt 0634 E:\CR\FM\A20DE8.383 pfrm07 PsN: E20PT1 E2488 CONGRESSIONAL RECORD — Extensions of Remarks December 20, 2001 Chairman Helfer: But it’s still the FDIC as this—do you think it is likely Mr. Hurwitz given the lack of precedent, that the FDIC manager. would want to proceed with both sets of liti- could avoid expending funds that duplicate Vice Chairman Hove: It’s still the FDIC, I gation simultaneously? what the OTS might choose to do. But you’re agree, but I think (unclear)— Mr. Thomas: He shouldn’t. hedging in that, if the OTS decides not to Chairman Helfer: No, I appreciate the clar- Chairman Helfer: If he had a chance to pursue in two months, we leave open the op- ification for the record. Yes. stay one of the proceedings and not spend tion of the FDIC proceeding. I’m willing to Mr. Thomas: Yes, it—particularly if there the money on one of them, do you think he’d go with proceeding on— was ever an issue, in terms of resolution of— likely take that chance? Chairman Helfer: My—my understanding is of this as part of the settlement, with the Mr. Thomas: He shouldn’t. Of course, he that the staff would have no intention to du- Int—involving Interior and the redwoods, shouldn’t. plicate litigation or litigation costs with the that—it might make a difference in terms of Chairman Helfer: He shouldn’t what? I’m OTS, to the extent the staff can control how complicated the legislation had to be to sorry. that— achieve it. Because it—where you—it’s an Mr. Thomas: He should not want to pro- Mr. Thomas: Certainly, we’re— issue of taxpayer money rather than insur- ceed in both forums. I mean, it’s—it’s not Chairman Helfer: —possibility— ance fund money. economically rational, as I view the world, Mr. Thomas: —trying to avoid it today and Mr. Steinbrink: Can—can I go back and be but then again, the fact that he didn’t sign we’ll continue to try to avoid it. a little more basic. And—and—and—and cor- the tolling agreement is not, in my view, Chairman Helfer: And the issue there sim- rect me if—if I’ve got in my mind this— economically rational. ply is the court’s willingness to stay the pro- this—this wrong. But we’ve got a group of in- Chairman Helfer: No. I think it—given the ceeding. dividuals here who have cost the FDIC $1.6 difficulty the Board is having deciding to Director Fiechter: It’s—it’s your view that billion. We’ve got a court system that has bring suit, it was quite economically ration- you can’t come up with a good reason why not ruled in our favor, recently, on certain al. He’s clearly telling the Board to put up or they wouldn’t be willing to stay. elements of the case. We’ve spent 4 million shut up, don’t you think? Chairman Helfer: Well—I’m—I— bucks and we may spend 10 million bucks, Mr. Thomas: Oh, yeah. I—I—I have not dis- Director Fiechter: And I just don’t know— plus another [$]600,000, if you go all the way cus—I never met Mr. Hurwitz, but I think Chairman Helfer: —it—it’s— through this case. And we’ve got the possi- it’s pretty clear that he views this as a mat- Director Fiechter: —that much about the— bility—there is never a guarantee in this ter of calling our bluff, when you boil it Chairman Helfer: —dangerous—what is the world—of a 50 percent success rate, perhaps down. saying, a fool—‘‘A lawyer seeking to be his lower but 50 percent, for settlement some- Director Fiechter: My views on this were, own counsel has a fool for a client.’’ I recog- where in the—(Redacted by Committee on in part, based on the—just the math, the cost nize that, but I can’t help but bring to bear Resources). of proceeding versus what we might collect. to this matter my own, somewhat limited, Mr. Thomas: Well, the [$]7 [million] to [$]14 Are you suggesting there’s a reasonably good experience with litigation and my own read- [million] is simply multiplying the percent- chance that we could agree to sue today but ing of more li—more—greater experience at age likely—the success, against that range. that, should OTS proceed—decide to pursue the appellate level in the Fifth Circuit, ad- That’s— this in a couple of months, and as I under- mittedly with one of the sounder judges of Mr. Steinbrink: And we’ve got a statute of stand it OTS would have a probably stronger the Circuit, which are not unfortunately limitations that expires tomorrow and we’ve case than the FDIC, that the FDIC could ones that we seem to come before. So I have got another federal agency whose pursuing then go slow or ask for a dismissal with prej- to bring that to bear. Obviously, I don’t have the same actions. udice and that the FSLIC Resolution Fund the range of experience of Mr. Thomas, so I Mr. Thomas: They’re investigating. would therefore be no worse off than if the would have to defer to his advising the Board Chairman Helfer: We don’t know that yet. FDIC today decided not to sue. on legal matters. Mr. Steinbrink: Maybe. Mr. Thomas: (Redacted by Committee on Mr. Thomas: Our expectation is that Chairman Helfer: They’re looking at it. Resources.) Hurwitz would not want to proceed on two Mr. Thomas: They’re investigating, yes. Chairman Helfer: For a motion to dismiss? fronts, but there are no guarantees and he is Mr. Steinbrink: Now, is there anything in Mr. Thomas: Motion to dismiss and re- a person who has made it clear that he there that’s—that’s necessarily wrong? lated—particularly if we get into any kind of doesn’t always do, in any forum, what other Mr. Thomas: I think you had an extra discovery. people expect of him. It doesn’t make sense $600,000 added on, but other—in our—our Chairman Helfer: Yes, but a motion to dis- to want to spend the money in two places. cost— miss, I can see the lower end of the range. A Vice Chairman Hove: I guess I—I can ap- Mr. Steinbrink: (Redacted by Committee summary judgment motion I can see the preciate what Steve was pointing out that— on Resources). higher end of the range, or higher probably. that—that there are losses here and—and no Mr. Thomas: Yeah. Yeah. But, no— Mr. Thomas: (Redacted by Committee on question about—some of these people are— Director Fiechter: Am I right, John— Resources.) are not the kind of people that you’d like to Mr. Steinbrink: And— Mr. Steinbrink: But the one thing that is see in the financial services industry and— Director Fiechter: Oh, sorry. certain is that we have people who, in our and that they did some things that weren’t Mr. Steinbrink: And by—if—if we choose to opinion and the historical opinion of the reg- appropriate. And I guess we’re doing it more pursue this case, in your opinion we are not ulatory agencies, have done things that are on principal—the—the principal of it. But— going to harm the OTS’s case. but the economics of the thing still doesn’t Mr. Thomas: I think that’s right. unsafe and unsound and have performed acts make sense. But, in the sense of collegiality, Mr. Steinbrink: And if you—if we choose that we don’t think are appropriate and if—if the Chairman is interested in having to—not to, we probably won’t harm the they’ve cost the FDIC $1.6 billion with these this go forward, I’m willing to let it go for- OTS’s case. acts— Mr. Thomas: I think that’s correct. Mr. Thomas: The—the acts of these indi- ward. Director Fiechter: But that if we do pursue viduals during the stew—well, this institu- Chairman Helfer: I believe the court’s un- it, you’re not certain whether we, the FDIC, tion had equity capital of some rather mod- willingness—let me ask one more question, can drop out. Should OTS decide to pursue, est amount and if you took out the goodwill on Texas law. What does Texas law say about we have parallel— in 1983 before Hurwitz bought it, it would adverse domination? Mr. Thomas: We have a—a reasonable pros- have been insolvent. Their acts—their— Mr. Thomas: The truth is, the Fifth Circuit pect to being able, in one way or another, to under their control, this institution went wrote on a clean slate, for all practical pur- drop out. In fact, we probably have a good from being marginally insolvent to a [$]1.6 poses. There are—the Texas courts’ laws— prospect, but we don’t have a guarantee that billion loss. Yes. the Texas court cases really don’t say much we can do it. Chairman Helfer: And you believe those of anything. They simply said, well, this is Chairman Helfer: Can you give me an ex- acts constitute gross negligence? what we think the Texas courts would do. We ample of a court that has refused to allow a Mr. Thomas: Yes. asked, in one of our recent cases, to have the case to be dismissed with prejudice by the Chairman Helfer: Without question. I Fifth Circuit certify something to the Texas party that sought— mean, it’s the staff’s view that the facts sup- Supreme Court to answer the question. They Mr. Thomas: No. port that these acts were grossly negligent. declined. Chairman Helfer: —to bring the case? Mr. Thomas: In terms of the claims we’re— Chairman Helfer: That, of course, depends Mr. Thomas: No. There’s not question we we’re discussing here, they lost a lot of on the panel one gets in the Fifth Circuit. could—if—we can get out. money for other things. They were the sub- One of the—at least one of the virtues of this Chairman Helfer: But you’re raising the ject—they were the victim of fraud; they case might be to press that issue of how far restitution issue. were the victim of bad economy; they were a the adverse domination determination goes Mr. Thomas: Right. Right. Yeah, there’s no victim of a lot of other things, but the things and whether one can look to the sta—the question— we propose to sue on we believe are grossly continuing conduct after—let me state it dif- Chairman Helfer: Whether we would want negligent, yes. ferently. If one can look to continuing con- to. Director Fiechter: On my understanding duct adverse to the insured institution, even Mr. Thomas: Right. that the—that to the extent we find that the where the act that led to that took place Chairman Helfer: So then your issue is, suit today is redundant and that there is a during the period which the court said the would the court stay the proceeding? If good probability, but you can’t guarantee,

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00150 Fmt 0666 Sfmt 0634 E:\CR\FM\A20DE8.385 pfrm07 PsN: E20PT1 December 20, 2001 CONGRESSIONAL RECORD — Extensions of Remarks E2489 statute of limitations would bar, if that on August 1, 1995 (Closed to Public Observa- Maxxam could be held liable for USAT’s would essentially allow the Fifth Circuit to tion). losses, and if such a swap became an option, ameliorate wha—what I personally believe to (SEAL) the FDIC would consider it as one alter- be a gross disservice to insured institutions LENETA G. GREGORIE, native and would conscientiously strive to not to recognize the principal of adverse Counsel and Special Assistant, resolve any pertinent issues.’’ domina—adverse domination in this context. to the Executive Secretary. If you are asked specifically about this So— issue, we believe there is no reason to devi- Mr. Thomas: I couldn’t agree more. ate from this position. RECORD 28 Chairman Helfer: Pardon? Please do not hesitate to contact Jeffrey Mr. Thomas: I couldn’t agree more. Memorandum To: Alan Whitney, Director, Williams, at 736–0648, or Bob DeHenzel, at Chairman Helfer: So I have to say that my Office of Corporate Communications. 736–0685 if you have any questions whatso- concern is we have principals that have Alice Goodman, Director, Office of Legis- ever. caused a $1.6 billion loss. We—to the U.S. lative Affairs. taxpayer. We have a judgment that, as to the From: Jeffrey Ross Williams, Counsel, Pro- RECORD 29 claims that we would bring, these individ- fessional Liability Section. Robert J. uals were not simply negligent but grossly DeHenzel, Jr., Counsel, Professional Li- 8/15/95—Hurwitz negligent as to the insured institution. And ability Section. Alan McReynolds and Larry Millinger—In- we have the prospect of making claims that Subject: PLS Lawsuit Filed Today Against terior 208–6172 might lead a different panel of the Fifth Cir- Charles Hurwitz. Jeff Webb, Interior, Land acqui cuit to make a judgment that would amelio- As you know, yesterday the FDIC Board of K Zeigler, Fish and Wildlife rate some of the grosser adverse aspects of Directors authorized the filing of a PLS suit OTS—Rick Sterns, Bruce Rinaldi California Delegation wrote Interior for the previous Fifth Circuit decisions. I recog- against Charles E. Hurwitz arising out of the creative suggestions as to how to acquire the nize that, of course, a panel could simply fol- failure of United Savings Association of redwoods. low suit. What prospect—is there a split in Texas (‘‘USAT’’), Houston, Texas. The Rick—OTS—can’t really discuss their the Circuits on this? Is there two Circuits FDIC’s complaint was filed this afternoon in the United States District Court for the claims—policy to be quiet and they’ve gone essentially the same way? Alan—Hurwitz lawyers Mr. Thomas: (Redacted by Committee on Southern District of Texas in Houston. A copy of the complaint is attached for your Terry Gorton—Rep of Calif Resources). Gov’s office—Spec Asst to Sec of Natural Chairman Helfer: But you’re saying there reference. The complaint seeks damages against Resources. are no Texas Supreme Court decisions on Hurwitz in excess of $250 million and alleges Strategy—a fund of property owned by point. So the Fifth Circuit is essentially in- claims for gross negligence, breach of fidu- state to sell or trade—70 to 100 m. feels deal terpreting state law based on its own judg- ciary duty and breach of the duty of loyalty can be cut $150 to 250 m. ment about state law. arising out of his own conduct and for aiding Hurwitz’ lawyers said the $500 m appraisal Mr. Thomas: (Redacted by Committee on and abetting the conduct of others who should not be an obstacle for price/deal. Resources). served as officers and directors of USAT. The Obstacles to logging: Chairman Helfer: Would there be a pros- complaint alleges that Hurwitz dominated Presidential ambitions of Wilson—com- pect that a different panel of the Fifth Cir- and controlled USAT as a controlling share- plicates matters for Interior. cuit might allow certification of the issue? holder, a de facto senior officer and director Interior doesn’t have surplus property to Mr. Thomas: (Redacted by Committee on and controlling person. put on table. Resources). Count I of the complaint alleges that 16 bases in Calif to be closed could chop off Chairman Helfer: No, I understand. Hurwitz breached his fiduciary duty of loy- a piece or pieces Mr. Thomas: —forum either, but it’s— alty to USAT by failing to ensure that H told Terri he would take Grand Prairie Chairman Helfer: I understand, but that at USAT’s net worth was maintained by its par- Tex Naval Air Station. least— ent company, United Financial Group, Inc. Should Interior go visit DOJ and see about Mr. Thomas: ——worth a try. (‘‘UFG’’) and by its controlling shareholders acquiring property. Chairman Helfer: —it sets a clear stand- MCO Holdings, Inc. (‘‘MCO’’ now known as Rick says nothing here will influ OTS deci- ard— Maxxam) and Federated Development Cor- sion to bring an action. Rick—FDIC will prob have to go thru a Mr. Thomas: That’s right. poration (‘‘Federated’’). Count II of the com- Chairman Helfer: —of what the state law plaint alleges that Hurwitz was grossly neg- round of motions. JDS says we would sit at a global settle- is— ligent and breached his duty of loyalty to ment table. Dirs briefed—no objection stat- Mr. Thomas: That’s right. USAT in failing to act to prevent additional ed. Chairman Helfer: —as opposed to the Fifth losses from USAT’s first mortgage backed Alan—fear of sending wrong messg by pur- Circuit. securities portfolio. Count III alleges that suing this at all. Mr. Thomas: And we’ve had some suc- Hurwitz was grossly negligent and breached RTC has approached Interior. cesses, ‘‘we’’ in the RTC. For example, in his duty of loyalty to USAT in causing Maryland, the District Court certified a mat- USAT to invest substantial amounts of ter to the Maryland Supreme Court. Every- mortgage backed securities in its subsidiary, RECORD 30 one thought that we would lose in Maryland United MBS, resulting in substantial losses. FEDERAL DEPOSIT INSURANCE and they came back and said, oh, no adverse As we informed the Board, this action will CORPORATION, domination is the law in Maryland; a very be highly visible because Hurwitz and USAT Washington, DC, November 6, 1995. favorable decision. We have so—we have cir- have attracted media coverage and comment MEMORANDUM TO: Kathleen McGinty, cuits going both ways but they again are ba- from environmental groups and members of Chairperson, Council on Environmental sically looking at state law. Congress. Hurwitz has a reputation as a cor- Chairman Helfer: Okay. There has been a Quality, Executive Office of the Presi- porate raider, and his hostile takeover of Pa- dent. motion to reconsider the previous vote of the cific Lumber attracted enormous publicity Board with respect to the staff’s rec- FROM: Jack D. Smith, Deputy General and litigation because of his harvesting of Counsel, Federal Deposit Insurance Cor- ommendation to authorize the institution of California redwoods. Environmental inter- a PLS suit in the matter of United Savings poration. ests have received considerable publicity in SUBJECT: Headwaters Forest/Charles Association of Houston, Texas. Given that the last two years, suggesting exchanging motion, I would now seek a new motion in Hurwitz, Debt-for-Nature Transaction. our D&O claims for the redwood forest. We At a meeting in your office on October 22, support of the staff’s recommendation. recently met with representatives of the De- 1995, you requested an analysis of certain Director Fiechter: I’ll so move. partment of the Interior (‘‘DOI’’), who in- issues pertaining to the viability of obtain- Chairman Helfer: And a second. formed us that they are negotiating with ing a transfer of the Headwaters Forest from Mr. Steinbrink: I’ll second it. Hurwitz about the possibility of swapping Chairman Helfer: All in favor of the mo- Pacific Lumber ( a corporation controlled by various properties, plus possibly the FDIC/ Charles Hurwitz) to the United States. tion? OTS claim, for the redwood forest. They Vice Chairman Hove: Aye. This memorandum states the issues and stated that the Administration is seriously summarizes the answers. More detailed re- FEDERAL DEPOSIT INSURANCE interested in pursuing such a settlement. We sponses are attached. These responses were CORPORATION, plan to follow up on these discussions with prepared by representatives of the Federal Washington, DC. DOI in the coming weeks. All of our discus- Deposit Insurance Corporation, the Office of sions with DOI are strictly confidential. Management and Budget, and the Depart- CERTIFICATION In response to numerous letters from the ment of the Interior. I, Leneta G. Gregorie, Counsel and Special environmental community and members of Assistant to the Executive Secretary, Office Congress about the possibility of the FDIC Issues and Answers of the Executive Secretary, Federal Deposit pursuing a debt for nature swap, we have Issue 1: It is feasible for Hurwitz to trans- Insurance Corporation, do certify that the started that: fer the Headwaters Forest to the FDIC in ex- attached is an excerpt taken from the Tran- ‘‘although such a swap almost certainly change for a settlement of the FDIC’s law- script of a Board of Directors Meeting held would raise numerous difficult questions, if suit and/or other assets?

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00151 Fmt 0666 Sfmt 0634 E:\CR\FM\A20DE8.387 pfrm07 PsN: E20PT1 E2490 CONGRESSIONAL RECORD — Extensions of Remarks December 20, 2001 Answer: Yes. While Hurwitz does not di- Next Steps Epic court fights, regulatory skirmishing rectly own the Headwaters Forest, he con- It appears appropriate to arrange a meet- and disputes over its value, have kept com- trols the boards of directors and the business ing as soon as possible to decide upon what, pany chainsaws from cutting Headwaters’ decisions of the corporate entity that owns if any, action is appropriate. Hurwitz has re- 3,000 acres of towering redwoods, some dat- the land. Hurwitz is the majority stock- cently signaled—both directly and through ing back to the time of Christ. holder of Maxxam, Inc. which, through its his personal and corporate representatives— DIFFERENT APPRAISALS wholly owned subsidiaries, owns the Head- his desire to discuss the Headwaters Forest Pacific Lumber contends Headwaters’ fair waters Forest. He is also the Chairman of with representatives of the Government. For market value is nearly $600 million, but gov- the Board of Directors, President and Chief example, in a recent newspaper interview ernment appraisals have ranged as low as Executive Officer of Maxxam and through (attached), Hurwitz endorsed the possibility $400 million. Because of normal regulatory these capacities has controlled the business of a transfer of the Headwaters forest in ex- constraints surrounding harvesting of old- and financial decisions of Maxxam and its change for assets of equivalent economic growth trees, preservation proponents say subsidiaries. Most important, the FDIC law- value. Furthermore, in recent discussions Headwaters’ true value is much less, perhaps suit against Hurwitz may well ultimately be with FDIC after the publication of the inter- around $200 million. a liability of Maxxam because Maxxam’s by- view, Hurwitz’s lawyers have indicated their Whatever value may be set, Hurwitz said laws contractually obligate it to indemnify client’s interest in discussing a resolution of he doesn’t necessarily expect taxpayers to Hurwitz for liability in connection with acts the Headwaters Forest issue. Similar state- come up with that kind of cash. He once performed while serving in any capacity on a ments have been made by other Hurwitz rep- again said he would favor offsetting some of Maxxam subsidiary such as United Savings resentatives to the Department of the Inte- the cost by swapping the big trees for aban- Association of Texas or its holding compa- rior. doned U.S. government property. nies. Hurwitz, through his control over There appears to be little downside in re- ‘‘You know, if I could get someone who was Maxxam’s and its subsidiaries’ boards of di- sponding to these overtures at an early date. very serious about resolving this, and who rectors, has previously influenced the trans- If everyone else agrees, it would be necessary had some authority, to sit down with me, I fer of Pacific Lumber’s assets to resolve to decide the following: think we could work out a Headwaters solu- other liabilities, including lawsuits. Finally, 1. Which person(s) should be authorized to tion in half a day,’’ said Hurwitz. the FDIC’s Chairman has stated that in the contact Hurwitz; Hurwitz warned, however, that a deal event the Headwaters Forest is offered to the 2. Through which Hurwitz representative needs to be struck soon. He said he believes FDIC as part of a settlement of the FDIC’s (e.g., Maxxam, Pacific Lumber, Hurwitz’s de- a Republican majority in Congress, and its claims against Hurwitz, the FDIC Board of fense lawyers) should such contact be made; zeal for private property rights, creates a Directors would consider accepting such as- 3. The substantive authority of the negoti- better political climate for Pacific Lumber’s sets to resolve the claims against Hurwitz. ating person or group for its discussions with efforts to either be fairly compensated for Issue 2: It is feasible for FDIC to transfer Hurwitz; and Headwaters, or be allowed to log the swath the Headwaters Forest to the Department of 4. A mechanism for the negotiating person of old trees tucked in the coastal ridges east the Treasury? or group to regularly consult and coordinate of Fortuna. Answer: The FDIC could legally transfer its discussions with the respective federal ‘‘I want to tell you that this is America, title to the Headwaters Forest out of the agencies and offices that are involved in this and that this land is zoned for timber cut- FDIC’s FSLIC Resolution Fund (‘‘FRF’’) to effort. ting,’’ said Hurwitz defiantly. Treasury, if the FDIC determined that the Please let me know if the FDIC can be of ‘‘We are going to move forward. Somebody state of the FRF at the time of transfer were further assistance. My phone number is (202) is going to pay us fair market value, or we’re such that the value of the Headwaters Forest 898–3706 and William F. Kroener, III, FDIC going to cut it. And we’re not embarrassed to was not better retained in the fund for dis- General Counsel, can be reached at 898–3680. say that,’’ he said. A federal court recently charge of FRF liabilities. It is unclear Attachments. has put on hold company plans to remove whether the FDIC Board of Directors would dead or dying trees from Headwaters pending be able to make the requisite determination [From the Press Democrat, Oct. 22, 1995] trial of the latest in a series of lawsuits filed in the near term given uncertainties as to by the grass-roots group Environmental pro- PACIFIC LUMBER: 10 YEARS AFTER contingent liabilities, although a plausible tection Information Center in Garberville. (By Mike Geniella) case might be made in favor of such a deter- DEAL OF CENTURY mination in light of the present condition of SCOTIA.—Ten years after pulling off a near- Departing from his usual stance of no FRF’s balance sheet. We note, too, that ly $1 billion hostile takeover of Pacific Lum- interviews, Hurwitz spoke for nearly an hour Treasury would have to be willing to receive ber Co., Texas Financier Charles Hurwitz is by phone from a Puerto Rico resort being de- the Headwaters Forest (if only as part of an seething because his most prized asset re- veloped by his Houston-based Maxxam Inc. instantaneous transfer on to the Department mains off-limits. The conglomerate also owns Kaiser Alu- of the Interior or another federal agency), Hurwitz believes a continuing controversy minum, and substantial real estate holdings and an interagency memorandum of under- about Headwaters Forest, the largest stand nationwide. The conference call interview in- standing would therefore seem desirable in of ancient redwoods left in private hands— cluded Pacific Lumber President John Camp- order to flesh out this plan. In the event that worth $600 million today by company esti- bell, who was a P-L executive before the the FDIC Board were unwilling in the near mates—not only hinders business, but denies Hurwitz takeover. term to make the requisite determination him and managers of the 127-year-old North Hurwitz talked freely about controversies for a transfer to Treasury, a feasible alter- Coast timber giant the recognition he feels that erupted after Pacific Lumber’s old native might be for the FDIC as manager of they deserve. board of directors capitulated 10 years ago the FRF to hold the Headwaters Forest, ‘‘We’ve stuck around for 10 years. We’ve re- today, and voted to sell the aristocrat of under an interagency agreement whereby it invested $100 million in new facilities, added West Coast timber companies to Maxxam. It would be managed by the Department of the more *** and expanded our timber base. We became the timber deal of the century be- Interior, until such time as conditions for a rebuilt *** town after an earthquake and cause Pacific Lumber’s under-valued assets determination for outright transfer to Treas- fire,’’ said Hurwitz. were probably worth closer to $2 billion, ac- ury (and then on to Interior) are satisfied. ‘‘And still we’re the bad guys,’’ he said. Issue 3: What legislative mechanisms exist ‘‘My God, the way the critics beat the hell cording to estimates in some shareholder that may facilitate a transfer of the Head- out of this company, you would think we lawsuits filed to the aftermath of the waters Forest to the U.S. Department of the have slaves working there or something,’’ Hurwitz takeover. Interior with minimal financial outlay? complained Hurwitz. At the time of Hurwitz’s takeover, Pacific Answer: Three legislative authorizations In a rare interview, Hurwitz told The Press Lumber was touted by the Sierra Club and provide a mechanism for an inter-agency Democrat that Pacific Lumber is willing to Save the Redwoods League for its respon- transfer of title to the Headwaters Forest to have an independent party determine a value sible logging practices. Generations of Hum- the Department of the Interior. They are for Headwaters if that helps bring an end to boldt County residents have worked for Pa- The Transfer of Real Property Act; The the North Coast’s most tenacious environ- cific Lumber and lived in Scotia, the West’s Coastal Barriers Improvement Act; and The mental battle. last real mill town. Until the takeover, they Base Closure and Realignment Act of 1990. Andy McLeod, spokesman for Secretary of were comforted by a paternalistic manage- Each Act presents particular legal and polit- Resources Douglas Wheeler, welcomed ment that gave them a lifestyle once charac- ical considerations that require special con- Hurwitz’s offer. terized as ‘‘Life in the Peace Zone.’’ sideration. ‘‘Without doubt, determining a value for Pacific Lumber’s buyout by an outsider Issue 4: What would be the likely budg- the forest is key to finding solutions to the was a stunning development for hundreds of etary impact from an acquisition or transfer complexities surrounding Headwaters,’’ he workers and their families, and a region that of the Headwaters Forest through the FDIC? said. depends on the company for its economic Answer: Any budgetary impact, including However, McLeod said the state will not well-being. The takeover ignited a decade of ‘‘scoring,’’ is dependent on the particular negotiate ‘‘other than directly with the par- environmental activism in the streets and in structure of the transaction and whether ties involved.’’ the courts, and reshaped the face of North particular legislation is necessary to facili- ‘‘Any further discussion on any value for Coast politics. Logging controversies have tate the acquisition or transfer of the Head- Headwaters will have to be done directly,’’ played a role in almost every major election waters Forest. he said. since the takeover.

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00152 Fmt 0666 Sfmt 0634 E:\CR\FM\A20DE8.391 pfrm07 PsN: E20PT1 December 20, 2001 CONGRESSIONAL RECORD — Extensions of Remarks E2491 In the beginning, Hurwitz was largely un- Bosco said he no longer has any ties to ‘‘But that isn’t what you hear on the known. At the time, he was a small-time in- Hurwitz, or Pacific Lumber. But he said he streets, or read in the newspapers,’’ said ventor with alleged ties to convicted Wall agrees with Hurwitz that most of the blame Hurwitz. ‘‘I’ve had people tell me they went Street wheeler-dealers Michael Millken and for the Headwaters statement is with the po- to Scotia expecting to see a Palm Springs; Ivan Boesky, and a failed Texas savings and litical process. no trees and all sand. They were amazed to loan that cost taxpayers $1.6 billion. Today ‘‘It should have been resolved in the public see forests everywhere they looked.’’ his personal portfolio is worth an estimated arena, but it wasn’t,’’ said Bosco. CHARLES HURWITZ $180 million. Hurwitz said the bad rap he and Pacific After snagging sleepy Pacific Lumber for Lumber receive about wanting to log the last Age: 65 $800 million during the takeover craze of the of the ancient redwoods in private ownership Born: 1940, Kilgore, Texas 1980s. Hurwitz ordered the cut doubled to is unfair. College: University of Oklahoma meet the company’s cash flow needs, and pay ‘‘I get all these letters every day from high Career: Started work as a stockbroker for up to $90 million a year in interest payments school and junior high kids saying, ‘Please Bache & Co. in 1952 in New York, later San on about $550 million in junk bonds he used don’t cut down the Headwaters,’’’ said Antonio. to finance the takeover. Hurwitz later was to Hurwitz. First deal: At age 27, Hurwitz got investors use early profits from Pacific Lumber’s ac- ‘‘I write them back and give them our to put up $54 million to launch the Hedge celerated cut to help fund a takeover of an- version of this thing, and then I tell them Fund of America. In 1967, it was the second- other venerable Northern California indus- they should write their senators, write the largest public offering ever on Wall Street. trial giant, Kaiser Aluminum. Congress, and write the president if they The Hurwitz Decade: want to save the Headwaters,’’ he said. As his empire grew, Hurwitz was attacked May 1982: Hurwitz’s MCO Holdings and Hurwitz rejected environmentalists’ clam- as a ruthless raider whose targets, including Federated Development buy Simplicity Pat- or for a so-called ‘‘debt-for-nature’’ swap in- Pacific Lumber, were asset-rich companies. tern Co. for $48 million, and later change volving a $250 million claim a federal agency His dealings involving Pacific Lumber came name to Maxxam. has filed against the Houston investor for his under scrutiny by the Securities and Ex- October 1985: Pacific Lumber board capitu- alleged role in the collapse of United Savings change Commission, the U.S. Labor Depart- lates, and agrees to sell North Coast timber ment and a congressional oversight com- and Loan Association of Texas. Hurwitz contended the Federal Deposit In- giant to Hurwitz. mittee, none of which took any action. A May, 1988: Maxxam acquires Kaiser Tech. probe by the Federal Deposit Insurance Corp, surance Corporation claims is in the form of a personal lawsuit against him, and cannot corporate parent of Kaiser Aluminum for into Hurwitz’s role in a failed Texas savings about $930 million. and loan resulted in a $250 million claim be linked to Maxxam or Pacific Lumber op- erations. December 1988: Another Hurwitz Invest- being filed against him. ment—United Savings Association of ACCUSATIONS NOT TRUE LAND SWAP Texas—fails, eventually costing taxpayers Hurwitz dismissed his critics. The possibility of swapping Headwaters for $1.6 billion. ‘‘Their accusations are just not true, and surplus government property dominated July 1992: Maxxam bids $350 million for a anybody who will spend the time looking Hurwitz’s thoughts during the interview. controlling interest in Continental Airlines, into them will find that out,’’ said Hurwitz. Hurwitz cited as an example a closed mili- but offer rejected. Soon after the Pacific Lumber takeover tary base in Texas between Galveston and Hurwitz ordered the sale of a tool company Houston, where he lives. ISSUE 1. IS IT LEGALLY FEASIBLE FOR subsidiary of Pacific Lumber for $300 mil- ‘‘It’s 15,000 acres of land, and it’s doing CHARLES HURWITZ TO ARRANGE THE lion. He sold Pacific Lumber’s former San nothing but drawing dust and rattlesnakes. TRANSFER OF MAXXAM’S ASSETS SUCH AS Francisco headquarters building for another Wouldn’t it be great if someone like our- THE HEADWATERS FOREST TO THE GOV- $30 million, moving all corporate operations selves took it over and built new homes and ERNMENT IN EXCHANGE FOR A SETTLE- to Scotia and fueling speculation he in- a shopping center and created new jobs rath- MENT OF THE FDIC LAWSUIT AND/OR tended to dismantle the timber giant and er than have this land just sit there and do OTHER ASSETS? sell all of its assets. Critics predicted Scotia nothing?’’ SHORT ANSWER: YES. BY HIS DOMI- would be a ghost town within 10 years. Hurwitz described such a possibility as a Hurwitz said the years have proven the ‘‘win-win for everyone.’’ NANT POSITION AS MAXXAM, INC.’S critics wrong. ‘‘Everyone thinks we’re the stumbling CHAIRMAN OF THE BOARD, PRESIDENT ‘‘We’re still here, and we’re still growing,’’ block (to a Headwaters solution), and that’s AND CHIEF EXECUTIVE OFFICER, AND he said. just not the case,’’ said Hurwitz. AS ITS MAJORITY (60%) STOCKHOLDER, Hurwitz said his rogue image is a carry- Hurwitz insisted the future is bright for HURWITZ CONTROLS MAXXAM AND PA- over from the 1980s, ‘‘When everybody who Pacific Lumber. CIFIC LUMBER (a wholly owned subsidiary did takeover was cast in a bad light. But Pacific Lumber, whose annual sales top $20 of MAXXAM, INC.) AND THE BUSINESS contrary to a lot of those kind of people, million, is not for sale despite Wall Street DECISIONS OF THEIR BOARDS OF DIREC- we’re builders. We’re happy with our invest- Journal reports earlier this summer to the TORS. THROUGH HIS POSITIONS, ments.’’ contrary, said Hurwitz. HURWITZ CAN ARRANGE FOR MAXXAM Hurwitz said in fact, Pacific Lumber under Still his reputation persists. TO EXCHANGE ITS PROPERTY FOR ‘‘I warned Hurwitz early on that his take- Campbell’s guidance is looking to the North OTHER ASSETS AND/OR THE DISCHARGE over of Pacific Lumber would become the ab- Coast, and around the globe to expand its OF MAXXAM LIABILITIES. THE FDIC solutely perfect symbol of what everyone timber operations. LAWSUIT AGAINST HURWITZ MAY WELL ‘‘We’ve been to South America, Africa and doesn’t like about American business,’’ re- ULTIMATELY BE A LIABILITY OF even Russia,’’ he said. called former Rep. Doug Bosco, D- MAXXAM BECAUSE MAXXAM’S BYLAWS ‘‘We’re builders. We don’t buy and sell,’’ Sebastopol. After his defeat to Rep. Frank OBLIGATE IT TO INDEMNIFY HURWITZ said Hurwitz about Maxxam’s investment Riggs, R-Windsor, Bosco for a year was paid FOR LIABILITY IN CONNECTION WITH strategies. $15,000 a month by Hurwitz to try to forge a ACTS PERFORMED WHILE SERVING IN Hurwitz said he likes the timber business. consensus in Congress, where a bill had been ANY CAPACITY ON A MAXXAM SUB- ‘‘Just last week, we had discussions about a introduced for the public acquisition of SIDIARY SUCH AS UNITED SAVINGS AS- potential acquisition within the industry,’’ Headwaters. SOCIATION OF TEXAS OR ITS HOLDING he said. ‘‘We’re very much in the growth Those efforts failed, and so have a series of COMPANIES. MOREOVER, IF THE OTS mode,’’ said Hurwitz. others in the state Legislature and at the BRINGS CHARGES AGAINST MAXXAM DI- Hurwitz said he’s offended that Pacific federal level. RECTLY THIS WOULD ALSO BECOME A Lumber has been cast as an environmentally Hurwitz said he’s disgusted with the polit- MAXXAM LIABILITY. (Answer prepared by insensitive company under his stewardship. ical ‘‘circus.’’ He recalled in 1988 when he FDIC). ‘‘What bothers me more than anything else went to Sacramento with Bosco, who was DISCUSSION ANSWER: is that people think we’re hurting the envi- then still a congressman, to meet with key ronment. It’s simply not the case. We’ve I. Hurwitz’s Control of Pacific Lumber legislative leaders. They asked Hurwitz to hired the best foresters, the best biologists Hurwitz controls Pacific Lumber’s cor- agree to a voluntary logging moratorium on to chart the company’s course into the next porate activities, including a sale or transfer Headwaters, an agreement Pacific Lumber century,’’ said Hurwitz. of its assets, through his equity ownership in stuck to until this year, when Hurwitz said Hurwitz and Campbell said Pacific Lum- and domination of the board of directors of he’d had enough. ber’s timberlands, even after a decade of ac- Maxxam, Pacific Lumber’s parent corpora- NOTHING HAPPENED celerated cutting, still have the most timber tion. ‘‘I was told by these guys that they were volume per acre than anywhere else in Cali- a. Hurwitz’s Control of Maxxam going to step in and solve this issue,’’ said fornia, and perhaps Oregon and Washington. 1. Controlling Stockholder: Hurwitz and var- Hurwitz. ‘‘But they didn’t do a damn thing. They said the company will be able to sus- ious family interests own a controlling block We sat around for two years twiddling our tain current production and job levels indefi- of stock in Maxxam. Hurwitz and his family thumbs waiting for something to happen, nitely by acquiring more timberland, and de- currently own and control, directly and and nothing ever did.’’ veloping new product lines. through wholly owned personal and family

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00153 Fmt 0666 Sfmt 0634 E:\CR\FM\A20DE8.394 pfrm07 PsN: E20PT1 E2492 CONGRESSIONAL RECORD — Extensions of Remarks December 20, 2001 investment companies and trusts, approxi- August 1, 1988, . . . by reason of the fact that old growth trees over the last few years, a mately 60.4 percent of the voting stock inter- he or she is or was a director, officer, em- temporary restraining order was recently ests of Maxxam. Through this majority ployee or agent . . . or is or was at any time granted further prohibiting Pacific Lumber stock ownership, Hurwitz controls the elec- serving at the request of [Maxxam], any from harvesting in the Headwaters Forest. tion of candidates to Maxxam’s board of di- other corporation . . . or other enterprise in As a result, the cash starved company con- rectors and the financial and business deci- any capacity, against all expenses, liability tinues to lose its best source of income. sions of Maxxam and its numerous wholly and loss . . .’’ Maxxam refers to these indem- ISSUE 2: IS IT FEASIBLE FOR FDIC TO owned subsidiaries, including Pacific Lum- nification obligations in connection with a TRANSFER THE HEADWATERS FOREST ber. description of the FDIC lawsuit against TO TREASURY? 2. Controlling Director and Officer: Hurwitz Hurwitz in its most recent SEC filing, stat- SHORT ANSWER: THE FDIC COULD LE- is Maxxam’s Chairman of the Board, Presi- ing that Hurwitz has not yet made a formal GALLY TRANSFER TITLE TO HEAD- dent, and Chief Executive Officer, and has claim for indemnification from Maxxam. See, WATERS FOREST FROM THE FSLIC RES- held these positions since he acquired Maxxam, Inc. 10–Q, June 30, 1995. OLUTION FUND (‘‘FRF’’) TO TREASURY IF Maxxam. b. Although Hurwitz was not an elected di- THE FDIC DETERMINED THAT THE b. Maxxam’s Control of Pacific Lumber. rector of United Savings Association of STATE OF THE FRF AT THE TIME OF Maxxam is engaged in forest products oper- Texas (‘‘USAT’’), and Hurwitz—not TRANSFER WERE SUCH THAT THE ations through its wholly owned subsidiary, Maxxam—is a defendant in the FDIC’s law- VALUE OF HEADWATERS FOREST WAS Maxxam Group, Inc. (‘‘MGI’’), and MGI’s suit, the suit alleges that Hurwitz was a ‘‘de NOT BETTER RETAINED IN THE FRF FOR wholly owned subsidiary, Pacific Lumber facto’’ director of the thrift through his as- DISCHARGE OF FRF LIABILITIES. A CASE Company, which Hurwitz acquired in a hos- sertion of actual control over its operations COULD BE MADE IN FAVOR OF SUCH A tile tender offer in October 1985. Pacific and decisionmaking, that he was an elected DETERMINATION AT PRESENT, AL- Lumber owns, either in its own name or board member of United Financial Group THOUGH THE FDIC BOARD OF DIREC- through subsidiaries, approximately 189,000 (‘‘UFG’’) (USAT’s first-tier holding com- TORS MIGHT PREFER TO FOSTER ALL acres of commercial timberlands in Hum- pany), and was a member of the joint USAT/ FRF ASSETS IN VIEW OF CONTINGENT boldt County in northern California. UFG Strategic Planning Committee. LIABILITIES. ABSENT SUCH A DETER- 1. 179,000 acres of Pacific Lumber’s c. Moreover, the FDIC’s suit alleges that MINATION, AN ALTERNATIVE MIGHT BE timberlands, including approximately 6,000 Hurwitz breached his fiduciary duty to FOR THE FDIC TO HOLD THE HEAD- acres of virgin old growth redwood and bor- USAT by placing his and Maxxam’s financial WATERS FOREST FOR THE TIME BEING, der areas known as the Headwaters Forest, interests above the interests of USAT and its UNDER MANAGEMENT BY THE DEPART- have been transferred to Scotia Pacific Hold- depositors by choosing to refuse to cause MENT OF THE INTERIOR. (Answer prepared ing Company, a wholly owned subsidiary of Maxxam to infuse new capital into USAT, as by FDIC). Pacific Lumber. was required by a capital maintenance DISCUSSION ANSWER: Assuming a settlement of professional li- 2. Title in the Headwaters Forest was in agreement with the Federal Home Loan ability claims in which the Headwaters For- turn transferred to Salmon Creek Corpora- Bank Board, that would have replenished est is transferred from a Hurwitz-related tion, a wholly owned subsidiary of Scotia Pa- USAT’s depleted capital. cific. Salmon Creek’s only asset is the Head- d. Maxxam currently possesses sufficient company to the FDIC as manager of the waters Forest; it has been reported that the assets to pay a substantial liability, includ- FSLIC Resolution Fund (‘‘FRF’’), the ques- debt and other liabilities undertaken in con- ing indemnifying Hurwitz for the amount of tion becomes how best to then transfer the nection with Hurwitz’s acquisition of Pacific a judgment or settlement. Maxxam is a pub- redwood forest from the FDIC to another Lumber were maintained with Pacific Lum- licly traded company with market capital- agency with an ultimate view toward dedi- ber and were not transferred to Salmon ization of $233 million and total assets of $3.7 cating it to wilderness purposes for the ben- efit of the United States. We believe that the Creek. Moreover, Hurwitz has deliberately billion. See, Maxxam, Inc. 10–Q, June 30, 1995. avoided pledging any part of the Headwaters most efficient way of doing this—and per- III. Related Litigation Which Could be Settled haps the only way with a clear enough legal Forest timber as collateral for Pacific Lum- in a Global Settlement With Hurwitz ber’s or its subsidiaries’ financing arrange- framework not requiring new legislation— In addition to the FDIC’s lawsuit, there ments, thereby making a transfer of title to would be for the FDIC to transfer Head- are at least three other lawsuits which have the Headwaters Forest from Salmon Creek waters out of the FRF to Treasury, utilizing value and could be exchanged in a global set- to the U.S. relatively easier. unique authority existing under the FRF en- tlement involving the Headwaters Forest. c. Hurwitz’s Ability to Transfer Pacific Lum- abling statute, and for Treasury thereafter a. In early 1994, Robert Martel, a private ber’s Assets: Hurwitz has demonstrated his to transfer the forest to the Department of citizen, supported and funded by numerous ability to control the actions of the board of the Interior or other federal agency pursuant environmental organizations, filed a lawsuit directors of Maxxam, Pacific Lumber, and to other, more general statutory authority against Hurwitz, Maxxam, and other persons its subsidiaries in connection with the reso- concerning inter-agency transfers of prop- and entities that alleges that Hurwitz ille- lution of claims against the assets of erty. gally used USAT funds for the benefit of With regard to transfer out of the FRF, it Maxxam, Pacific Lumber, and other subsidi- himself and Maxxam, and that such trans- should be noted that section 11A(f) of the aries. Through his domination of Maxxam’s actions diverted money from USAT and re- FDI Act, 12 U.S.C. § 1821a(f), provides that board of directors, Hurwitz has influenced sulted in its insolvency. The complaint seeks the FRF ‘‘shall be dissolved upon satisfac- the financial and business decisions of Pa- damages against Hurwitz, Maxxam, and oth- tion of all debts and liabilities and sale of all cific Lumber and its two subsidiaries, Scotia ers under the False Claims Act which au- assets. Upon dissolution any remaining funds Pacific and Salmon Creek. After the acquisi- thorizes a damage award of three times the shall be paid into the Treasury.’’ Treasury is tion of Pacific Lumber, numerous lawsuits alleged actual damages of $250 million. thus, in effect, the residual beneficiary of the were filed against Hurwitz, Pacific Lumber, b. The Office of Thrift Supervision, a de- FRF—a fund which is supported by appro- Maxxam, MGI, and others involving partment of the Treasury, has been inves- priated monies from Treasury (see section Hurwitz’s tender offer and hostile takeover tigating the conduct of Hurwitz, other 11A(c) of the FDI Act, 12 U.S.C. § 1821a(c)), of Pacific Lumber. In November 1994, former USAT directors and officers, Maxxam and which logically (as well as statutorily) Hurwitz attended a conference in U.S. Dis- and other USAT holding companies. On No- should therefore go back into Treasury. To trict Court, Southern District of New York, vember 1, 1995, OTS notified Hurwitz, date approximately $46 billion has been ap- where the consolidated cases were pending. Maxxam and other potential respondents of propriated to support the FRF and it is only As a result of that meeting, Hurwitz, acting its intention to file claims against them in equitable that any funds remaining be re- on behalf of Pacific Lumber, Maxxam, and early December 1995. An OTS suit is likely to turned to the Treasury. Furthermore, al- other Maxxam subsidiaries, agreed to settle include a direct claim against Maxxam and though section 11A(f) by its terms speaks of the cases for $52 million, with $14.8 million may seek monetary damages that exceed FRF funds going to Treasury only upon FRF paid by Pacific Lumber, $33 million paid by $350 million. dissolution, the entire statutory framework insurance carriers of Pacific Lumber, c. Pacific Lumber has been unable to re- of the FRF has previously been interpreted Maxxam and MGI, and the balance from duce the substantial debt Hurwitz burdened to allow the return of FRF funds to Treasury other defendants. See, Maxxam, Inc. 10–K, it with as a result of his successful takeover under appropriate circumstances prior to December 31, 1994. Moreover, two weeks ago effort. The company is in need of cash to such dissolution. In particular, as stated in Hurwitz said he could ‘‘work out a Head- service its operations. As harvestable another context: waters solution in half a day’’ if he could get timberland, the virgin old growth redwoods ‘‘it may asserted generally that Congress the government to talk to him. that comprise the Headwaters Forest are could not have intended for excess funds to II. Maxxam May Well Ultimately Be Obligated among Pacific Lumber’s most valuable as- remain indefinitely in the FRF in the event to Indemnify Hurwitz for FDIC Lawsuit sets. To date, however, Pacific Lumber has that the FDIC as manager were to determine a. Maxxam’s indemnification provisions been unable to log these trees, and has suf- in later years that the amount of such funds are contained in the amended Bylaws dated fered financially as a result. In addition to exceeded the FRF’s needs estimated as of August 1, 1988, and provide indemnity to numerous lawsuits filed by various environ- that time—especially since any liabilities ‘‘each person who is or was a director or offi- mental organizations against Pacific Lum- unpaid by the FRF as a result of an early cer [of Maxxam] . . . at any time on or after ber that prevented the logging of the virgin transfer to the Treasury would have to be

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00154 Fmt 0666 Sfmt 0634 E:\CR\FM\A20DE8.397 pfrm07 PsN: E20PT1 December 20, 2001 CONGRESSIONAL RECORD — Extensions of Remarks E2493 satisfied by subsequent appropriations for ment, although if the assessment is made in erties to Federal and state agencies through which an authorization of appropriations is favor of Headwaters Forest preservation, the public benefit conveyances, if the property provided in § 11A(c) of the FDI Act.’’ FDIC may assist in its implementation by supports a primary mission of the agency. FDIC Memorandum, dated October 5, 1995, the means discussed above. The Department of the Interior is specifi- from Henry R. F. Griffin, Assistant General ISSUE 3: WHAT LEGISLATIVE MECHA- cally provided opportunities to acquire base Counsel, through William F. Kroener, III, NISMS EXIST THAT MAY FACILITATE A closure property at no cost for any one of General Counsel, to William A. Longbrake, TRANSFER OF THE HEADWATERS FOREST three purposes: parks and recreation, wildlife Deputy to the Chairman & Chief Financial TO THE U.S. DEPARTMENT OF THE INTE- conservation, or historic monuments. Officer. RIOR WITH MINIMAL FINANCIAL OUTLAY? Attached are materials relative to these Thus, if the FDIC as manager of the FRF SHORT ANSWER: THREE LEGISLATIVE authorities. were to conclude at any time that the AUTHORIZATIONS PROVIDE A MECHA- amount of assets in the FRF exceeds the NISM FOR AN INTER-AGENCY TRANSFER FDIC’s then estimate of FRF liabilities, the OF TITLE TO THE HEADWATERS FOREST Attachment amount of such excess or any portion thereof TO THE DEPARTMENT OF INTERIOR. § 667a. Omitted could be turned over to Treasury prior to THEY ARE THE TRANSFER OF REAL Historical Note dissolution of the FRF. (We stress, however, PROPERTY ACT; THE COASTAL BAR- Codification. Section, Act June 8, 1940, c. that any such early transfer out of the FRF RIERS IMPROVEMENT ACT; AND THE DE- 295.§§ 1 to 4, 54 Stat. 261, authorized compacts would be within the FDIC’s sole discretion.) FENSE BASE CLOSURE AND REALIGN- or agreements between or among the States Furthermore, although the statute speaks in MENT ACT OF 1990. EACH ACT PRESENTS bordering on the Atlantic Ocean with respect terms of FRF funds going back to Treasury, PARTICULAR LEGAL AND POLITICAL to fishing in the territorial waters and bays and the previous opinion concerned FRF CONSIDERATIONS THAT REQUIRE SPE- and inlets of the Atlantic Ocean on which funds, we do not perceive a legal bar to the CIAL CONSIDERATION. (Answer prepared such States border. FDIC’s making an early transfer of FRF as- by the Department of the Interior). Act May 4, 1942, c. 283, §§ 1 to 4, 56 Stat. 267, sets in kind (such as Headwaters, if it were DISCUSSION ANSWER: granted the consent and approval of Con- obtained by the FRF in settlement with There are three specific legislative author- gress to an interstate compact relating to (Hurwitz), provided the other conditions for izations which permit acquisitions of real the better utilization of the fisheries (ma- an early transfer were satisfied. property through a transfer from Federal rine, shell, and anadromous) of the Atlantic This approach would have the decided ad- Agencies to the U.S. Department of the Inte- seaboard and creating the Atlantic States vantage, from the FDIC’s viewpoint, of rior at no cost, at less than Fair Market Marine Fisheries Commission. avoiding the necessity for the FDIC to liq- Value, or with special considerations. These Act Aug. 19, 1950, c. 763, §§ 1 to 4, 64 Stat. uidate the Headwaters Forest at its fair mar- provisions could possibly assist in the acqui- 467, granted the consent and approval of Con- ket value. So long as the FDIC had obtained sition of Federal properties to support a land gress to an amendment to the Atlantic fair value from Hurwitz and related compa- exchange with Maxxam Corporation for the States Marine Fisheries Compact and re- nies in return for settlement of its profes- Headwaters Forest lands. pealed limitation on the life of such com- sional liability lawsuit (i.e., assuming the es- The Transfer of Real Property Act (16 U.S.C. pact. timated value of the Headwaters Forest § 667b) § 667b. Transfer of certain real property for would exceed the FDIC’s settlement value of This statute allows real property, which is wildlife conservation purposes; reservation the case), then the FDIC could hand the no longer required by the agency exercising of rights property over to Treasury without any ques- jurisdiction over the property, to be trans- tion as to whether the FDIC had fulfilled its Upon request, real property which is under ferred to state wildlife agencies for wildlife the jurisdiction or control of a Federal agen- fiduciary duty of maximizing (Headwaters) conservation purposes or to the Secretary of value to the FRF. Treasury as ‘‘residual ben- cy and no longer required by such agency, (1) the Interior in instances where the property can be utilized for wildlife conservation pur- eficiary‘‘ could itself maximize that value, has particular value in carrying out the na- applying its own policy and other judgments poses by the agency of the State exercising tional migratory bird management program. administration over the wildlife resources of to the matter—presumably by effecting a If the Administrator of General Services de- further transfer to the Department of the In- the State wherein the real property lies or termines that such real property is available by the Secretary of the Interior; and (2) is terior or another federal agency for wilder- for conservation purposes then he may, not- ness preservation purposes to the ultimate valuable for use for any such purpose, and withstanding any other provisions of law, which, in the determination of the Adminis- benefit of the United States. transfer said property ‘‘without reimburse- In short, the FDIC could legally transfer trator of General Services, is available for ment or transfer of funds’’ to a state or the such use may, notwithstanding any other title to the Headwaters Forest out of the Department of the Interior as appropriate. FRF to Treasury, if the FDIC determined provisions of law, be transferred without re- The Coastal Barrier Improvement Act (Pub. L. that the state of the FRF at the time of imbursement or transfer of funds (with or 101–591, § 10) transfer were such that the value of Head- without improvements as determined by said waters was not better retained in the FRF Section 10 of the Coastal Barrier Improve- Administrator) by the Federal agency having for discharge of FRF liabilities. We believe ment Act, 12 U.S.C. § 1441a–3 et seq., provides jurisdiction or control of the property to (a) that a plausible case for such a determina- that certain ‘‘covered’’ properties held by such State agency if the management there- tion may be possible at present or in the the Resolution Trust Corporation (RTC) or of for the conservation of wildlife relates to foreseeable future, given that the FRF cur- the Federal Deposit Insurance Corporation other than migratory birds, or (b) to the Sec- rently has assets and appropriated funds in (FDIC) cannot be sold or transferred by those retary of the Interior if the real property has excess of its liabilities. However, there can agencies until notice of availability is made particular value in carrying out the national be no assurance that the FDIC Board of Di- in the Federal Register, and the opportunity migratory bird management program. Any rectors would be willing to make the req- is given for a Federal Agency or ‘‘qualified such transfer to other than the United uisite determination given uncertainties as organization,’’ to submit a serious letter of States shall be subject to the reservation by to contingent liabilities of the FRF. We intent to acquire the property for the pur- the United States of all oil, gas, and mineral note, too, that Treasury would have to be pose of preserving it for wildlife refuge, sanc- rights, and to the condition that the prop- willing to receive the Headwaters Forest (if tuary, open space, recreational, historical, erty shall continue to be used for wildlife only as part of an instantaneous transfer on cultural, or natural resource conservation conservation or other of the above-stated to the Department of the Interior or another purposes. Covered properties include those purposes and in the event it is no longer used federal agency), and an inter-agency memo- which the RTC, FDIC or former Federal Sav- for such purposes or in the event it is needed randum of understanding would therefore ings and Loan Insurance Corporation for national defense purposes title thereto seem desirable in order to flesh out this plan. (FSLIC) have acquired in their corporate ca- shall revert to the United States. Finally, it is crucial to this approach that pacity and that is either located within the (May 19, 1948, c. 310, § 1, 62 Stat. 240; June 30, Treasury, as residual beneficiary of the FRF Coastal Barrier Resources System or is unde- 1949, c. 288, Title I, § 105, 63 Stat. 381; Sept. 26, and standing in lieu of taxpayers of the veloped, greater than 50 acres in size, and ad- 1972, Pub.L. 92–432, 86 Stat. 723.) United States, will have to make the assess- jacent or contiguous to any lands managed Historical Note ment (in consultation with other appropriate by a governmental agency primarily for the 1972 Amendment. C1. (2). Pub.L. 92–432 de- Federal governmental entities) that trans- preservation purposes stated above. If a Fed- leted ‘‘chiefly’’ preceding ‘‘valuable for use’’. ferring the Headwaters Forest for the con- eral agency or qualified organization sub- Transfer of Functions. The functions, templated purposes is, as a policy and legal mits such a letter of intent, the corporation records, property, etc., of the War Assets Ad- matter, the right thing to do, all factors con- concerned may not transfer the property to ministration were transferred to the General sidered. This assessment amounts to a judg- any other party for ninety days, unless the Services Administration, the functions of ment call as to the relative value of pre- letter of intent is withdrawn. the War Assets Administrator were trans- serving the Headwaters Forest for wilderness Defense Base Closure and Realignment Act of ferred to the Administrator of General Serv- purposes as opposed to settling the claim 1990 (Pub. L. 101–510, Section XXIX), as ices, and the War Assets Administration, and against Hurwitz for cash in order to reduce amended the office of War Assets Administrator were the federal deficit to that extent. It is not in The Base Closure Act authorizes the De- abolished by section 105 of the Act June 30, any event for the FDIC to make that assess- partment of Defense (DOD) to transfer prop- 1949.

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00155 Fmt 0666 Sfmt 0634 E:\CR\FM\A20DE8.399 pfrm07 PsN: E20PT1 E2494 CONGRESSIONAL RECORD — Extensions of Remarks December 20, 2001 Effective Date of Transfer of Functions. business and development component into The following criteria and factors will be Transfer of functions effective July 1, 1949, their overall base reuse planning process as a used, as appropriate, to determine whether a see Effective Date note set out under section basis for receiving and managing the real community is eligible for an EDC and to 471 of Title 40, Public Buildings, Property property. This supplemental effort will assist evaluate the proposed terms and conditions and Works. LRAs in identifying necessary implementa- of the EDC, including price, time of payment Legislative History. For legislative history tion resources and establish a community- and other relevant methods of compensation and purpose of Act May 19, 1948, see 1948 U.S. based proposal for the Military Department’s to the Federal Government. Code Cong. Service, p. 1553. See, also, Act consideration. The Military Departments Adverse economic impact of closure on the June 30, 1949, 1949 U.S. Code Cong. Service, p. and the Office of Economic Adjustment will region and potential for economic recovery 1475; Pub.L. 92–432, 1972 U.S. Code Cong. and continue to work closely with the affected after an EDC. Adm.News, p. 3366. LRA to ensure that an adequate planning ef- Extent of short- and long-term job genera- fort is undertaken. tion. [From the Federal Register, Vol. 59, No. 20G, What must an application contain? Consistency with the overall Redevelop- October 26, 1994] The application should explain why an ment Plan. EDC is necessary for economic redevelop- Financial feasibility of the development, DEPARTMENT OF DEFENSE ment and job creation. They application including market analysis and the need and Office of the Secretary should contain the following elements. extent of proposed infrastructure invest- 32 CFR Parts 90 and 91 1. A copy of the adopted Redevelopment ment. RINs 0790–AF61 and 0790–AF62 Plan. Extent of State and local investment and Revitalizing Base Closure Communities and 2. A project narrative including the fol- level of risk incurred. Community Assistance lowing: Current local and regional real estate mar- —A general description of property re- ket conditions. AGENCY: Department of Defense, DoD. quested. Incorporation of other Federal agency in- ACTION: Interim final rule: amendments. —A description of the intended uses. SUMMARY: The interim final rule amend- terests and concerns, and applicability of, —A description of the economic impact of and conflicts with, other Federal property ment promulgates guidance required by Sec- closure on the local communities. tion 2903 of the National Defense Authoriza- disposal authorities. —A description of the financial condition Relationship to the overall Military De- tion Act for Fiscal Year 1994. This guidance of the community and the prospects for rede- clarifies the application process and the cri- partment disposal plan for the installation. velopment of the property. Economic benefit to the Federal Govern- teria that will be used to evaluate an appli- —A statement of how the EDC is con- ment, including protection and maintenance cation for property under this section. sistent with the overall Redevelopment Plan. cost savings and anticipated consideration DATES: This document is effective October 3. A description of how the EDC will con- 26, 1994. Any pending written request for eco- from the transfer. tribute to short- and long-term job creation Compliance with applicable Federal, State, nomic development Economic Adjustment. and economic redevelopment of the base and and local laws and regulations. Consequently, application submitted by enti- community, including projected number, and What are the guidelines for determining ties other than LRAs will not be considered. type, of new jobs it will assist in creating. When should an application for an Eco- the terms and conditions of consideration? 4. A business and development plan for the The individual circumstances of each com- nomic Development Conveyance be made? EDC parcel, including such elements as: munity and each base mean that the amount First, an LRA must be organized and a re- —A development timetable, phasing plan and type of consideration may vary from development plan created. The Department and cash flow analysis. base to base. This amendment gives greater of Defense’s Office of Economic Adjustment —A market and financial feasibility anal- discretion and flexibility to the Military De- can provide guidance and technical and fi- ysis describing the economic visibility of the partments to negotiate with the LRA to ar- nancial support in these efforts, Once a rede- project, including an estimate of net pro- rive at an appropriate arrangement. Due to velopment plan has been developed and ceeds over a fifteen-year period, the proposed the circumstances of a particular site, the adopted, the LRA can then submit an EDC consideration or payment to the Department base’s value may be high or low, and the application to the Military Department re- of Defense, and the estimated fair market range of the estimated present fair market sponsible for the property. The application value of the property. should be submitted by the lRA after con- —A cost estimate and justification for in- value may be broad or narrow. Where there sultation with the Military Department frastructure and other investments needed is value, the Department of Defense has an which shall establish a reasonable time pe- for the development of the EDC parcel. obligation under Title XXIX of the National riod for submission of the application. —Local investment and proposed financing Defense Authorization Act for FY 1994 to ob- The LRA always has the option of acquir- strategies for the development. tain consideration within the estimated ing property under the FPASA and thus it 5. A statement describing why other au- range of present fair market value, or to jus- may not be necessary to complete an appli- thorities—as negotiated sale and public ben- tify why such consideration was not realized. cation for a EDC within the stated time- efit transfer for education, parks, public Taking into account all information pro- tables. LRSs can discuss the various transfer health, aviation, historic monuments, pris- vided in the EDC application and any addi- options with the Military Department. ons, and wildlife conservation—cannot be tional information considered relevant, the How much property should be included in used to accomplish the economic develop- Military Department will contract for or an Economic Development Conveyance ap- ment and job creation goals. prepare an estimate of the fair market value plication? 6. If a transfer is requested for less than of the property, which may be expressed as a The EDC should be used by LRAs to obtain the estimated fair market value—with or range of values. The Military Department large parcels of the base rather then merely without initial payment at the time of trans- shall consult with the LRA on valuation as- individual buildings. The income received fer—then a statement should be provided jus- sumptions, guidelines and on instructions from some of the higher value property tifying discount. The statement should in- given to the person(s) making the estimation should be used to offset the maintenance and clude the amount and form of the proposed of value. marketing cost of the less desirable parcels. consideration, a payment schedule, the gen- As stated above, the EDC application must In order for this conveyance to spur redevel- eral terms and conditions for the convey- contain a statement that proposes general opment, large parcels must be used to pro- ance, and projected date of conveyance. terms and conditions of the conveyance, as vide an income stream to assist the long- 7. A statement of the LRA’s legal author- well as the amount and type of the consider- term development of the property. ity to acquire and dispose of the property. ation, a payment schedule, and projected Why is an application necessary? Additional information may be requested date of conveyance. After reviewing the ap- This Amendment to the interim final rule by the Military Departments to allow for a plication, the Military Department has the prescribes that an application be prepared by better evaluation of the application. LRAs discretion and flexibility to enter into one of an LRA as the formal request for property, are encouraged to use site information avail- two types of agreements: to better assist the Military Department in able from the Military Departments, includ- 1. Consideration within the estimated considering requests for property under the ing maintenance and caretaking expenses. range of present fair market value, as deter- Economic Development Conveyance (EDC). What criteria will be used to make a deter- mined by the Secretary of the Military De- This information also will provide the basis mination on the application? partment. The Military Department can be for the Military Department to respond to After receipt of an application for an EDC, flexible about the terms and conditions of its obligation under Title XXIX, taking into the Secretary of the Military Department payment, and can provide financing on the account the best community-based informa- will determine whether an EDC is appro- property. The payment can be in cash or in- tion on the proposed conveyance action. A priate to spur economic development and job kind, and can be paid at time of transfer or great deal of information necessary for an creation and examine whether the terms and at a time in the future. The Military Depart- application is readily available to the LRA conditions proposed are fair and reasonable. ments will have the discretion and flexibility through the community planning process The Military Department may also consider to enter into agreements that specify the and supported through existing DoD tech- information independent of the application, form and amount of consideration and en- nical and financial resources. such as views of other Federal agencies, ap- sures that consideration is within the esti- Beyond the standard planning information praisals, caretaker costs and other relevant mated range of fair market value at the time collected to date. LRAs should incorporate a information. of application. Such methods of payment

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00156 Fmt 0666 Sfmt 0634 E:\CR\FM\A20DE8.402 pfrm07 PsN: E20PT1 December 20, 2001 CONGRESSIONAL RECORD — Extensions of Remarks E2495 could include: participation in the gross or tives. Conveyances to the LRA will be made ment Conveyance. Specific attention will be net cash flow, deferred payments, mortgages under terms and conditions designed to fa- placed on the business and development plan or other financing arrangements. cilitate local economic redevelopment and submitted as part of the EDC application and 2. Consideration below the estimated range job creation, and may be made at less than the criteria listed in section 91.7(e)(8) will be of fair market value, where proper justifica- fair market value, with proper justification. used. tion is provided: If a discount is found by the * * * * * (4) In those instances in which an EDC is Secretary of the Military Department to be made for consideration below the range of necessary to foster local economic redevelop- PART 91—REVITALIZING BASE CLOSURE the estimated present fair market value of ment and job creation, the amount of consid- COMMUNITIES—BASE CLOSURE COM- the property—or if the estimated fair market eration can be below the estimated range of MUNITY ASSISTANCE value is expressed as a range of values, below fair market value. Again, the terms and con- 4. The authority citation for part 91 con- the lowest value in that range—the Military ditions of payment will be negotiated be- tinues to read as follows: Department shall prepare a written expla- tween the Military Department and the Authority: 10 U.S.C. 2687 note. nation why the estimated fair market value LRA. 4A. Section 91.4 is revised to read as fol- was not obtained. Additionally, the Military (a). Justification. Proper justification for a lows: Departments must prepare a written state- discount shall be based upon the findings in § 91.4 Policy. ment explaining why other Federal property the business and development plan contained It is DoD policy to convey property to a transfer authorities could not be used to gen- in the EDC application. Local Redevelopment Authority (LRA) to erate economic redevelopment and job cre- Development economics, including absorp- help foster economic development and job ation. tion schedules and legitimate infrastructure creation when other federal property dis- costs, would provide a basis for such jus- posal options cannot achieve such objectives. Dated: October 20, 1994. tification. The ability to pay at time of con- Conveyances to the LRA will be made under L.M. Bynum, veyance or to obtain financing would not be terms and conditions designed to facilitate Alternate OSD Federal Register Liaison Offi- a proper justification, since payment terms local economic redevelopment and job cre- cer, Department of Defense. and conditions can be negotiated. ation, and may be made at less than fair In negotiating the terms and conditions of market value, with property justification. consideration with the LRA, the Secretary This regulation does not create any rights Revision Notes and Legislative Reports of the Military Department must determine and remedies and may not be relied upon by 1989 Act. House Report No. 101–54 and that a fair and reasonable compensation to any person, organization, or other entity to House Conference Report No. 101–209, see 1989 the Federal Government will be realized allege a denial of any rights or remedies U.S. Code Cong. and Adm.News, p. 86. from the EDC. Where property is transferred other than those provided by Pub. L. 103–160. References in Text under an EDC at an amount less than the es- Title XXIX. timated range of fair market value, the Mili- The Housing and Urban Development Act (x) Compliance with applicable Federal, of 1968, as amended, referred to in par. (2), is tary Department shall prepare a written ex- State, and local laws and regulations. planation of why the consideration was less Pub.L. 90–448, Aug. 1, 1968, 82 Stat. 476, as (l) Consideration. amended. Title IX of the Housing and Urban than the estimated range of present fair (1) For conveyances made pursuant to sec- Development Act of 1968, as amended, is clas- market value. tion 91.7(d). Economic Development Convey- sified principally to chapter 49 (§ 3931 et seq.) D. Executive Order 12866 ances, the Secretary of the Military Depart- of Title 42, The Public Health and Welfare. ment will review the application for an EDC It has been determined that these amend- Title IV of the Housing and Urban Develop- and negotiate the terms and conditions of ments are a significant regulatory action. ment Act, which was classified to chapter 48 each transaction with the LRA. The Military The amendments to the rule raise novel pol- (§ 8901 et seq.) of Title 42, was repealed, with Departments will have the discretion and icy issues arising out of the President’s pri- certain exceptions which were omitted from flexibility to enter into agreements that orities. the Code, by Pub.L. 98–181, Title IV, § 474(e), specify the form, amount, and payment E. Regulatory Flexibility Act Nov. 30, 1983, 97 Stat. 1239. For complete clas- schedule. The consideration may be at or sification of this Act to the Code, see Short This rule amendment is not subject to the below the estimated fair market value, with Title of 1968 Amendment note set out under Regulatory Flexibility Act (5 U.S.C. 601 et or without initial payment, in cash or inkind section 1701 of this title and Tables. seq.) because the amendment will not have a and paid over time. An EDC must be one of significant economic impact on a substantial the two following types of agreements: Codifications number of small entities. The primary effect (i) Consideration within the estimated Section was enacted as part of the Finan- of this amendment will be to reduce the bur- range of present fair market value, as deter- cial Institutions Reform, Recovery, and En- den on local communities of the Govern- mined by the Secretary of the Military De- forcement Act of 1989 and not as part of the ment’s property disposal process at closing partment. Payments must be made to ensure Federal Home Loan Bank Act, which com- military installations and to accelerate the consideration is within the estimated range prises this chapter. economic recovery of the relatively small of fair market value at the time of applica- Separability of Provisions number of communities that will be affected tion. If any provisions of Pub.L. 101–73 or the ap- by the closure of nearby military installa- (ii) Consideration can be below the esti- plication thereof to any person or cir- tions. mated range of fair market value, when cumstance is held invalid, the remainder of F. Paperwork Reduction Act proper justification is provided. The amount Pub.L. 101–73 and the application of the pro- of consideration can be below the estimated The Rule amendment is not subject to the vision to other persons not similarly situ- range of fair market value, if the Secretary Paperwork Reduction Act because it imposes ated or to other circumstances not to be af- of the Military Department determines that no obligatory information requirements be- fected thereby, see section 1221 of Pub.L. 101– a discount is necessary for economic redevel- yond internal DoD use. 73, set out as a note under section 1811 of this opment and job creation. List of Subjects in 32 CFR Parts 90 and 91. title. Community development, Government em- (2) The amount of consideration paid in the § 1441a–2. Authorization for State housing fi- ployees, Military personnel, Surplus Govern- future shall equal the present value of the nance agencies and nonprofit entities to ment property. agreed-upon fair market value or discounted fair market value. Additional provisions purchase mortgage-related assets PART 90—REVITALIZING BASE CLOSURE may be incorporated in the conveyance docu- (a) Authorization COMMUNITIES ments to protect the Department’s interest Notwithstanding any other provision of 1. The authority citation for 32 CFR part 90 in obtaining the agreed upon consideration. Federal or State law, a State housing fi- continues to read as following: Also, the standard GSA excess profits clause, nance authority or nonprofit entity may Authority: 10 U.S.C. 2687 note. appropriately tailored to the transaction, purchase mortgage-related assets from the § 90.4 [Removed and Reserved] will be used in the conveyance documents to Resolution Trust Corporation or from finan- 2. Section 90.4(a)(1)(iii) is removed and re- the LRA. cial institutions with respect to which the served. (3) In a rural area, as defined by this rule, Federal Deposit Insurance Corporation is 3. Section 90.4(b) is revised to read as fol- any EDC approved by the Secretary of the acting as a conservator or receiver (includ- lows: Military Department shall be made without ing assets associated with any trust busi- consideration when the base closure will ness), and any contract for such purchase § 90.4 Policy. have a substantial adverse impact on the shall be effective in accordance with its * * * * * economy of the communities in the vicinity terms without any further approval, assign- (b) In implementing Title XXIX of Public of the installation and on the prospect for ment, or consent with respect to that con- Law 103–160, it is DoD policy to convey prop- their economic recovery. The Secretary of tract. erty to a Local Redevelopment Authority the Military Department concerned will de- (b) Investment requirement (LRA) to help foster economic development termine if these two conditions are met Any State housing finance authority or and job creation when other federal property based on all the information considered in nonprofit entity which purchases mortgage- disposal options cannot achieve such objec- the application for an Economic Develop- related assets pursuant to subsection (a) of

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00157 Fmt 0666 Sfmt 0634 E:\CR\FM\A20DE8.404 pfrm07 PsN: E20PT1 E2496 CONGRESSIONAL RECORD — Extensions of Remarks December 20, 2001 this section shall invest any net income at- (4) Offers and permitted transfer among the presidents of the Federal Home tributable to the ownership of those assets in If a notice of serious interest in a covered Loan Banks. financing, refinancing, or rehabilitating low- property is timely submitted pursuant to (2) Terms and moderate-income housing within the ju- paragraph (2), the corporation concerned Of the 2 members appointed under para- risdiction of the State housing finance au- may not sell or otherwise transfer such cov- graph (1)(B), 1 shall be appointed for an ini- thority or within the geographical area ered property during the 90-day period begin- tial term of 2 years and 1 shall be appointed served by the nonprofit entity. ning upon the expiration of the period under for an initial term of 3 years. Thereafter, (Pub.L. 101–73, Title XIII, § 1302, Aug. 9, 1989, paragraph (2) except to a governmental agen- such members shall be appointed for a term 103 Stat. 548.) cy or qualified organization for use pri- of 3 years. HISTORICAL AND STATUTORY NOTES marily for wildlife refuge, sanctuary, open (3) Vacancy Revision Notes and Legislative Reports space, recreational, historical, cultural, or If any member leaves the office in which natural resource conservation purposes, un- 1989 Act. House Report No. 101–54 and such member was serving when less all notices of serious interest under House Conference Report No. 101–209, see 1989 *** paragraph (2) have been withdrawn. U.S.Code Cong. and Adm. News, p. 86. (B) the successor to the office of such (c) Definitions member shall serve the remainder of such Codifications For purposes of this section: member’s term. Section was enacted as part of the Finan- (1) Corporation concerned The term ‘‘corporation concerned’’ (4) Equal representation of banks cial Institutions Reform, Recovery, and En- No president of a Federal Home Loan Bank forcement Act of 1989 and not as part of the means— (A) the Federal Deposit Insurance Corpora- may be appointed to serve an additional Federal Home Loan Bank Act, which com- term on the Directorate until such time as prises this chapter. tion, with respect to matters relating to the Federal Deposit Insurance Corporation; and the presidents of each of the other Federal Definitions (B) the Resolution Trust Corporation, with Home Loan Banks have served as many For definitions of terms used in this sec- respect to matters relating to the Resolution terms as the president of such bank. tion see section 1441a–1 of this title. Trust Corporation. (5) Chairperson LIBRARY REFERENCES (2) Covered property The Thrift Depositor Protection Oversight American Digest System The term ‘‘covered property’’ means any Board shall select the chairperson of the Di- property— rectorate from among the 3 members of the Supremacy of federal law as to banking, (A) to which— see States § 18.19. Directorate. (i) the Resolution Trust Corporation has (6) Staff Encyclopedias acquired title in its corporate or receivership (A) No paid employees Concurrent of conflicting state legislation, capacity; or The Funding Corporation shall have no (ii) the Federal Deposit Insurance Corpora- see C.J.S. States § 24. paid employees. tion has acquired title in its corporate ca- WESTLAW ELECTRONIC RESEARCH (B) Powers pacity or which use acquired **** States cases: 360k [add key number]. (B) that— The Directorate may, with the approval of § 1441a–3. RTC and FDIC properties (i) is located within the Coastal Barrier the Federal Housing Finance Board author- (a) Reports Resources System; or ize the officers, employees, or agents of the (1) Submission (ii) is undeveloped, greater than 50 acres in Federal Home Loan Banks to act for and on The Resolution Trust Corporation and the size, and adjacent to or contiguous with any behalf of the Funding Corporation in such Federal Deposit Insurance Corporation shall lands managed by a governmental agency manner as may be necessary to carry out the each submit to the Congress for each year a primarily for wildlife refuge, sanctuary, open functions of the Funding Corporation. report identifying and describing any prop- space, recreational, historical, cultural, or (7) Administrative expenses erty that is covered property of the corpora- natural resource conservation purposes. (A) In general tion concerned as of September 30 of such (3) Governmental agency All administrative expenses of the Funding year. The report shall be submitted on or be- The term ‘‘governmental agency’’ means Corporation, including custodian fees, shall fore March 30 of the following year. any agency or entity of the Federal Govern- be paid by the Federal Home Loan Banks. (2) Consultation ment or a State or local government. (B) Pro rata distribution In preparing the reports required under (4) Undeveloped The amount each Federal Home Loan Bank this subsection, each corporation concerned The term ‘‘undeveloped’’ means shall pay under subparagraph (A) shall be de- (A) containing few manmade structures may consult with the Secretary of the Inte- termined by the Thrift Depositor Protection and having geomorphic and ecological proc- rior for purposes of identifying the prop- Oversight Board by multiplying the total ad- esses that are not significantly impeded by erties described in paragraph (1). ministrative expenses for any period by the (b) Limitation on Transfer any such structures or human activity; and percentage arrived at by dividing— (B) having natural, cultural, recreational, (1) Notice (i) the aggregate amount the Thrift De- or scientific value of special significance. The Resolution Trust Corporation and the positor Protection Oversight Board required Federal Deposit Insurance Corporation may (Pub.L. 101–591, § 10, Nov. 16, 1990, 104 Stat. 2939.) such bank to invest in the Funding Corpora- not sell or otherwise transfer any covered tion (as of the time of such determination) HISTORICAL AND STATUTORY NOTES property unless the corporation concerned under paragraphs (4) and (5) of subsection (e) causes to be published in the Federal Reg- Revision Notes and Legislative Reports of this section (computed without regard to ister a notice of the availability of the prop- 1990 Act. House Report No. 101–657(I) and paragraphs (3) or (6) of such subsection); by erty for purchase or other transfer that iden- (II), see 1990 U.S.Code Cong. and Adm.News, (ii) the aggregate amount the Thrift De- tifies the property and describes the loca- p. 4190. positor Protection Oversight Board required tion, characteristics, and size of the prop- Codifications all Federal Home Loan Banks to invest (as of erty. Section was enacted as part of the Coastal the time of such determination) under such (2) Expression of serious interest Barrier Improvement Act of 1990 and not as paragraphs. During the 90-day period beginning on the part of the Federal Home Loan Bank Act, (8) Regulation by Thrift Depositor Protec- date that notice under paragraph (1) con- which comprises this chapter. tion Oversight Board cerning a covered property is first published, § 1441b. Resolution Funding Corporation es- The Directorate of the Funding Corpora- any governmental agency or qualified orga- tion shall be subject to such regulations, or- nization may submit to the corporation con- tablished (a) Purpose ders, and directions as the Thrift Depositor cerned a written notice of serious interest Protection Oversight Board may prescribe. for the purchase or other transfer of a par- The purpose of the Resolution Funding Corporation is to provide funds to the Reso- (9) No compensation from Funding Cor- ticular covered property for which notice has poration been published. The notice of serious interest lution Trust Corporation to enable the Reso- lution Trust Corporation to carry out the Members of the Directorate of the Funding shall be in such form and include such infor- Corporation shall receive no pay, allowance, mation as the corporation concerned may provisions of this chapter. (b) Establishment or benefit from the Funding Corporation for prescribe. There is established a corporation to be serving on the Directorate. (3) Prohibition of transfer (d) Powers of the Funding Corporation During the period under paragraph (2), a known as the Resolution Funding Corpora- The Funding Corporation shall have only corporation concerned may not sell or other- tion. (c) Management of Funding Corporation the powers described in paragraphs (1) wise transfer any covered property for which (1) Directorate through (9), subject to the other provisions notice has been published under paragraph The Funding Corporation shall be under of this section and such regulations, orders, (1). Upon the expiration of such period, the the management of a Directorate composed *** corporation concerned may sell or otherwise of 3 members as follows: transfer any covered property for which no- (A) The director of the Office of Finance of tice under paragraph (1) has been published if the Federal Home Loan Banks (or the head ISSUE 4: WHAT WOULD BE THE POS- a notice of serious interest under paragraph of any successor office). SIBLE BUDGETARY IMPACT FROM AN AC- (2) concerning the property has not been (B) 2 members selected by the Thrift De- QUISITION OF THE HEADWATERS FOREST timely submitted. positor Protection Oversight Board from THROUGH THE FDIC?

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00158 Fmt 0666 Sfmt 0634 E:\CR\FM\A20DE8.406 pfrm07 PsN: E20PT1 December 20, 2001 CONGRESSIONAL RECORD — Extensions of Remarks E2497 SHORT ANSWER: ANY BUDGETARY IM- (or, for that mater, from an individual) 10/11/95. PACT, INCLUDING ISSUES OF ‘‘SCORING,’’ would not be scored, since no resources Continued to talk to environmentalists, IS DEPENDENT ON THE PARTICULAR would actually become available for the pur- surrounding landowners STRUCTURE OF THE TRANSACTION AND chase until a separate appropriations law is Katie McGinty head of Council. WHETHER SPECIFIC LEGISLATION WAS enacted. If an appropriations act provides V.P. met with environmentalist when he NECESSARY TO FACILITATE THE ACQUI- funding to an agency to purchase the prop- was out there. SITION OR TRANSFER OF THE HEAD- erty, then the budget impact would be scored 10/12—Dave Felt. Monty Tuesday. WATERS FOREST. as discretionary. DISCUSSION ANSWER: 10/20/95 The interagency group has discussed sev- RECORD 31 May. At OMB re Hurwitz/Redwoods. eral potential mechanisms for accomplishing Assume it would go to Forest Service— the proposed ‘‘debt for nature’’ swap. The ENVIRONMENTAL PROTECTION only $30 mil in our land acquisition fund—We following discussion addresses the budgetary INFORMATION CENTER, have no particular interest—very small area impact of several possible ways of acquiring Garberville, CA. to manage/very remote—would be a manage- the Headwaters Forest, putting aside the 3,000 core acres—redwoods. ment problem. question of whether there is substantive au- 1,700 acres buffer zone. May make more sense to give it to BLM, thority for FDIC, Treasury, or Interior/ Calif is now talking downward $50 to 70 Park Service might want it. USDA to execute any of these transactions million. How much money from the state—$70 m in under existing law. CECELIA LANMAN, timber. First, we have discussed a possible trans- Biodiversity Network Project Director. Exchanges—a gigantic exchange of land action in which the FSLIC Resolution Fund would alienate citizens of neighboring states. (FRF) would gain title to the land and trans- DOD—forestry says consider military Base. fer it to Treasury, possibly considering the NATURAL HERITAGE INSTITUTE, If there there cash, we have higher prior- value of the land as an ‘‘advance payment’’ Washington, DC. ities. on funds that will eventually be returned to 3,000 core acres—redwoods. Minority shareholders—suit against Treasury when the FRF dissolves. Treasury 1,700 acres buffer zone. Hurwitz. would then transfer/sell the land to the ap- Calif is now talking downward $50 to 70 Can H settle a suit by trading MAXXAM’s propriate agency. If it is determined that the million. assets authority to execute this transaction exists JULIA A. LEVIN, -Can FDIC do it, what would Treasury have under current law, then the transaction can- Staff Attorney. to do. not be ‘‘scored’’ under the Budget Enforce- Further—states interest—whether there ment Act (only legislation may be scored). On or about 11/30/95. are DOD possibilities. However, there would be a budget impact. If Jill R * * * refer to J. Williams * * * Don’t plan on cutting trees—Forest Serv- FRF gained title to the land and did not re- ice said that’s why it may be better to send cover cash for it, FRF would have fewer re- it to Park Service. ceipts. In more technical terms, the failure On or about 12/7/95. Reconvene in about 2 wks. to recover cash for the land would be a fore- /12/3:00 closed. Alan McReynolds * * * Jill Budget scorekeeping problem. gone receipt to FRF. This foregone receipt R * * * Maxxan motion to dismiss—get it Coastal Barrier Improvement Act. increases FRF’s outlays, increases total Fed- from Ct—not from us—H manuf. consp. issues. eral outlays, and increases the deficit. The 10/31/95—Alan McReynolds, DOD—Steve— budget effect is the same regardless of Base Closure Cmtee. whether the transfer is to Treasury as an On or about 2/13/96. Revenue from closed bank goes into Bank intermediary or directly to the Park Serv- How FDIC holds properties list of high Closure Acct—Revenues fund for other clo- ice. value prop. in Calif./Texas. sures and improvements. Revenues fund Second, there may be a possibility of trad- other closure actions including environ- ing other U.S. government property (such as 10/19/95. mental cleanups. A host of other public in- surplus military property) for the land. This Gore’s Chief of Staff—Ann. terest conveyances prisons, hospitals, FAA transaction would not necessarily need to in- Chairperson CEO, Katie McGinty. airport, etc. 100% public benefit discount. volve the FRF, which could receive any set- Elizabeth Blaug * * * Red Emerson own, Homeless, port conveyance—Charlestown, tlement of its claims in cash. Again, if no Sierra Lumber—buffer zone, Earth firsters Fish & Wildlife, BLM— legislation is required, then the transaction chaining themselves to * * *. Dept. of Interior had a notion they could cannot be scored under the Budget Enforce- Why was the appraisal done? claim land and swap it for protected land. ment Act. In general, barter transactions are How much area did it cover? Admin. opposes that kind of deal. Commu- not recorded in the budget. However, if the When was it done? nity revitalization—in the past just sold surplus property that is used in the exchange Did it include the 1000 acres buffer zone? em—didn’t get proper value—no zoning, no would have otherwise been sold, the agency Kate Anderton * * * New G.C. Save The community support—BRAC (Base Reallign which owned the property would be foregoing Redwoods League, Appraisal Valuation Jan- and Closure, acct didn’t get much money: receipts. These foregone receipts would in- uary 1, 1993. Better to work with community now. Com- crease that agency’s outlays, increase total 1992 Bush received * * * as an appraisal munity based programs Sept. 28, 95’ Base clo- Federal outlays, and increase the deficit. * * * for headwaters. Interior subcommittee sures approves by Cong. Fitzsimmons—Den- Third, it may be the case that legislation said do appraisal Rep. Stark * * *, Cali- ver. Hurwitz would be able to work with is needed to authorize the transaction or to fornia/Pacific Lumber did forest cruise (est. Redev. Auth.—88, 91, 93, 95 Communities appropriate funds to complete the debt-for- Boardfeet). Neither state nor Pacific Lumber want control of the property. Can’t bypass nature swap. If legislation is needed, then paid—so they don’t have appraisal. Basis of the process of Redev. Auth. the Congressional Budget Office and OMB cruise challengeable. If VP wanted to do it, we could structure a would be responsible for estimating the (1) Get Forest Service to share cruise and way to make it happen. But DOD would lose budgetary effect of the transaction. Legisla- appraisal; (2) independent review by forester receipts. Calif. would have to look at outrage tion that increases direct spending (i.e., credible with both environment and indus- of local community. If we need spec. legis, spending that is not under the control of try. Save the Redwoods League Hammon we’ll figure that out. Not aware of any har- Congressional appropriators) is scored under Jennsen Wallen & Associates out of Oak- vestable timber land. the ‘‘pay-as-you-go’’ (PAYGO) rules of the land—well known to work for Pacific Lum- Wanda didn’t try to help Alan McReynolds. Budget Enforcement Act. An example of di- ber a lot. Appraisal assumed cutting 96 to Can’t trade whole Mendencino forest. rect spending legislation that is relevant to 97% of all trees on property. Estimate only 3 Possible—Naval OC Station 36 acres. Any- the case at hand would be if the legislation to 4% set aside to meet California Regula- thing less than 300 civilians may not be part directed FDIC to hand over the property to tions. Basis of environmentalists attack in of BRAC process—may be easier. another Federal agency without reimburse- hearings. 4,488 acres for bottom line—head- Calif deleg. believes S.F. Bay area Harbor. ment; this legislation would be considered to waters grove. Rep. Brown, Stark, Feinstein. be direct spending since it forces the FRF to Old growth grove 3,000. Buffer to W, S, lit- GSA controls mainly of Bldgs. Gordon has forgo receipts (and therefore increases FRF’s tle E 15000 (owned by Pacific Lumber) to N asked his staff to list possib. in Bay area. outlays and total Federal outlays). Simi- buffer is owned by Sierra Lumber. Ellington AFB in Texas not a BRAC prop. larly, legislation that requires the exchange Department of Energy—oil leases on public Naval Station, Ground Prairie B/W Dallas of excess Government property that would lands or BLM. and Arlington Interior might be part of otherwise have been sold for the Headwaters Defense Lands—DOD screening process with GSA. Forest would also be scored as foregone re- Make it part of 6 Rivers National Forest Economic Development conveyance—DOD ceipts under the PAYGO rules. managed by Agriculture. Options BLM man- gets receipts back over time. Legislation that simply authorizes an ap- age, Fish & Wildlife manage as a refuge. 2nd Round postings propriation for an agency (e.g., the Park $499 million appraisal—3000 acres head- USAT—RIO conf on environment included Service) to buy the property from the FRF waters, 1500 acres buffer * * * a contel to reduce Greenhs gasses by yr. 2000.

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00159 Fmt 0666 Sfmt 0634 E:\CR\FM\A20DE8.408 pfrm07 PsN: E20PT1 E2498 CONGRESSIONAL RECORD — Extensions of Remarks December 20, 2001

Program in Dept of envy to implement. Iden- er in Pelosi’s office who worked on the Head- DISCUSSION POINTS tify carbon offset projects. Scientific model waters forest legislation for five years, I now I. Background develop carbon sink capacity—preserve of believe it is incorrect to describe the $499 1. United Savings Association of Texas, trees perm. carbon sink—formulas—vehicle million as the result of an ‘‘appraisal.’’ It Houston, Texas, (‘‘USAT’’) was acquired in for corp—carbon offsets. Political need for was not performed by any independent per- 1983 by Charles E. Hurwitz. Hurwitz lever- U.S. to make progress. son and was an estimate based on public in- aged the institution through speculative and formation prepared by the Forest Service uncontrolled investment and trading in large and asserted by the Director of the Forest 11/28/95—Headwaters mtg. CEQ go GSA mortgage-backed securities portfolios, with- Service in testimony before the Sub- out reasonable hedges, to $4.6 billion in as- route to transfer from Trea to Interior. committee on National Parks & Public Land. ‘‘Coastal Barriers Mgt Act’’—‘‘12 U.S.C. sets. Investments lost value and USAT was The testimony demonstrated that the value declared insolvent and placed into FSLIC re- 1441a–3’’—RTC, FDIC property. was seriously flawed and that those that KM—extremely accurate reports came ceivership on December 30, 1988. Loss to the were involved in calculating the value never back from environmentalists—keep con- FSLIC Resolution Fund is $1.6 billion. saw the land. 2. While Hurwitz was a controlling share- fidentiality. He said no one takes the $499 million seri- holder and de facto director of USAT he ac- Physical assets may not ‘‘count as money ously anymore, particularly since Hurwitz quired, through a hostile takeover and with for scoring’’ bought PacLumber for $500 million total the strategic and financial assistance of Treasury cannot give FRF credit for the that included all the company’s assets which Drexel Burnham Lambert, Inc., Pacific Lum- trees. included a large downtown San Francisco of- ber Company, a logging business based in If policymakers make decision to accept fice building and tens of thousands of acres northern California. As a result, Hurwitz trees—increases Fed. deficit—Insurmount- of other land and buildings. came to control the old growth, virgin red- able issue—there is a hole here if you take As the 3500 acres has never been formally woods that are the principal focus of the trees. Interior disagrees w/FDIC analysis of appraised, you are correct that the time has Headwaters Forest. Coastal Barriers—they think it does work. come to commission such valuation. II. FDIC Litigation Eliz—our group will meet again to sift thru PacLumber knows the $499 million is too 1. On August 2, 1995, FDIC as Manager of remaining questions. No formal contacts high, that’s why, according to Pelosi’s staff- the FSLIC Resolution Fund filed a lawsuit until OTS files. er, it is using it too its advantage and not against Mr. Hurwitz seeking damages in ex- John G.—we are leaning toward FDIC challenging it. True value may be half that cess of $250 million. opening discussions. according to Pelosi’s office. Lois—scoring problems were the biggest a. Complaint contains three claims: Count 1 alleges breach of fiduciary duty by difficulties. Hurwitz as de facto director and controlling John G.—after admin suit is filed is time EXECUTIVE OFFICE OF THE PRESI- shareholder of USAT by failing to comply for opening any discussions—prior to that we DENT, COUNCIL ON ENVIRONMENTAL with a Net Worth Maintenance Agreement to get back to K.M. to see if there’s any reason QUALITY, Washington, DC, October 25, 1995. maintain the capital of USAT; not to go forward with negotiations. Counts 2 and 3 allege gross negligence and Alan McReynolds To: Dave Sherman, Forest Service; Allen McReynolds, DOI; Larry Mellinger, DOI; aiding and abetting gross negligence in es- Investment properties tablishing, controlling and monitoring two About 2/26/96 RTC prop—in the past Inte- Bruce Beard, OMB; Jack Smith, FDIC; David Long, DOJ; John Bowman, Treas- large mortgage-backed securities portfolios. rior had to pay. Has that changed. 2. FDIC has authorized suit against three ury. $124m—Oak Valley, Beaumont, Calif, 6700 other former directors of USAT that we have From: Elisabeth Blaug, Associate General acres of under land in Riverside Cty.; Kock not yet sued; a tolling agreement with these Counsel. property—La Quinta, Calif—1200 acres near potential defendants expires on December 31, Subj: Headwaters Forest Meeting October 26. Palm Springs, Wildlife Refuge Rancho San 1995. The court may order FDIC to decide to Diego—already Most of you attended a meeting this past add them as defendants prior to that date. Buckley—failure to advise clients—Ken Friday at CEQ Chair Katie McGinty’s office, 3. Status of FDIC Litigation: Pursuant to Walker. Call admin. atty to talk about case. at which we initiated discussions on a poten- the Federal Rules of Civil Procedure, the tial debt-for-nature swap. As you will recall, parties—through counsel—have met and ex- the DIC recently filed a $250 million suit Nov/Dec 1995 changed disclosure statements that list all against Charles Hurwitz for his role in the relevant persons and documents that support Jeff Wms—11:40, Thur 60648 Nov 14, 11:00 722 failure of the United Savings Association of Jackson Place CEQ Conf Rm. our respective positions. Moreover, the par- Texas (in addition, there is a private False ties have agreed to a scheduling order that Rick Sterns: Re Judge Hughes Claims challenge pending). Mr. Hurwitz is a Ross Delston: Parker James, Jack reflects a quick pre-trial period. All dis- major stock owner in Maxxam, which ac- covery is to be concluded by July 1, 1996. The Sherkma. * * * Pat Bak, M. Palen, Ann quired Pacific Lumber Company, which owns Shopet. Judge Hughes—use of overlapping court has set a scheduling conference to dis- and logs the Headwaters Forest. Because this cuss all unresolved scheduling issues for Oc- auth. Hanass, Thur. order. Carolyn talked to forest contains approximately 3,000 acres of Kim Thur. tober 24, 1995; and a follow-up conference on virgin redwoods, there is great interest to November 28, 1995. preserve it. Among a number of options to III. Settlement Discussions 1/19/96. Told Alan McReynolds that I had consider for ensuring this happens is a poten- 1. FDIC has had several meetings and dis- talked to Carolyn Buck after lunch on 7/17/96. tial debt-for-nature swap, by which FDIC would seek to acquire Headwaters from Mr. cussions with Hurwitz’ counsel prior to the I asked whether OTS wanted to be involved filing of the lawsuit. Hurwitz has never, how- in discussions led by CEQ to respond to Hurwitz in exchange for release of its claims. At our meeting last Friday, a number of ever, indicated directly to FDIC a desire a ne- Hurwitz’ suggestion about Headwaters. She gotiate a settlement of the FDIC’s claims. said curtly, ‘‘No.’’ I asked if she had any ob- complex legal issues were raised concerning this proposed swap, which relate in some 2. As result of substantial attention to Pa- jection to FDIC participating—she said that cific Lumber’s harvesting of the redwoods by was not for her to decide. I concluded from part to your agency. Essentially, we need to examine if and how there might be a chain of the environmental community, media in- her manner that she did not intend to ex- quiries, Congressional correspondence, and press an opinion and didn’t want to talk ownership from FDIC to Treasury to a land management agency. Hence, there is a fol- the state of California, Pacific Lumber has about it anymore so we parted without fur- issued various press releases stating it would low-up meeting tomorrow (Thursday) at 10:00 ther discussion. I advised Elizabeth Blauger consider various means of preserving the red- a.m. at FDIC, 550 17th Street, room 3036. We about this yesterday afternoon. I said that if woods. will attempt to identify the legal issues that Hurwitz wanted to have global settlements IV. OTS Investigation with OTS and FDIC involved he would have need to be addressed to determine whether a 1. Since July 1994, the Office of Thrift Su- to ask for them just as happened with Ey and debt-for-nature swap is feasible. I look for- pervision has been investigating the failure Deloitte ward to seeing you or your designate(s) to- morrow. Please contact me at 395–7420 if you of USAT for purposes of initiating an admin- have any questions. The FDIC contact is istrative enforcement action against Why consider giving these other prop- Jack Smith, Deputy General Counsel, at 898– Hurwitz, five other former directors and offi- erties, when there 1.6 B in losses. 3706. cers, and three Hurwitz-controlled holding companies. The OTS may allege a violation To: Jack D. Smith@LEGAL OGC RECORD 32 of the Net Worth Maintenance Agreement Hdq@Washington Tell Me—about 3/4/96. and unsafe and unsound conduct relating to From: Jeffrey Williams@LEGAL the two MBS portfolios and USAT’s real es- PLS2@Washington tate lending practices. If OTS files its ad- RECORD 33 Subject: re: Meeting with Gore Today (Re- ministrative lawsuit, if many allege damages vised) DRAFT that total more that $250 million. Date: Friday, October 20, 1995 9:27:23 EDT To: William F. Kroener, III, General Counsel 2. OTS has met with Hurwitz’ counsel; no Per my recent voice mail message to you Subj: Meeting with Vice President Gore on interest in settlement has been expressed to regarding my conversations with a key staff- Friday, Oct. 20, 1995, at 11:00 a.m. OTS.

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00160 Fmt 0666 Sfmt 0634 E:\CR\FM\A20DE8.412 pfrm07 PsN: E20PT1 December 20, 2001 CONGRESSIONAL RECORD — Extensions of Remarks E2499 3. OTS is likely to formally file the charges larly a guy named Joe Sikes. They are inter- b. OTS has been investigating Hurwitz, within 45 days. ested in talking with us to educate them- other former directors of USAT and UFG, 4. Appears to FDIC inappropriate to in- selves and us (and other appropriate folks/ Maxxam, and Federated Development Com- clude OTS representatives in the meeting to agencies) on the possibilities and difficulties pany (a Hurwitz entity that owned part of discuss possible settlement of its claims of including a closed military facility in a UFG). We do not know when OTS will com- against Hurwitz since OTS has not yet ap- transaction with Hurwitz. mence proceedings against Hurwitz and oth- proved any suit against Hurwitz or his hold- He is discussing it with his folks and I ers. ing companies and OTS’ participation at think they would be an asset to tomorrow’s c. However, FDIC and OTS claims alone such meeting may be perceived by others as meeting, making the key point even more are insufficient to exchange with Hurwitz in an effort by the Executive Branch to influ- clear that it will take more than FDIC’s settlement for the Headwaters Forest. ence OTS’s independent evaluation of its in- claims to get the trees and that FDIC re- vestigation. mains an important part of exploring cre- III. Factors That Could Enhance Likelihood of V. FSLIC Resolution Fund (‘‘FRF’’ Issues ative solutions to the issue. Settlement 1. The Financial Institutions Reform, Re- Let me know if they should be invited to a. New appraisal of Headwaters Forest. Old covery and Enforcement Act of 1989 the meeting. appraisal may be inadequate in light of re- (‘‘FIRREA’’) (enacted Aug. 9, 1989), accord MOSEL THOMPSON, cent environmental, economic, and other de- special treatment to certain savings & loan Department Assistant Treasury, 632–2032. velopments; and Hurwitz suggests need for associations that failed prior to its enact- new appraisal in 10/22/95 interview. ment. The FRF obtains its funds from the RECORD 35 b. Identification of whether and how Treas- Treasury and all recoveries from the assets ury can hold and transfer asset to Interior. CONFIDENTIAL/PRIVILEGED COMMUNICATION or liabilities of all FRF institutions are re- c. Identification of other consideration quired to be conveyed to Treasury upon the ISSUES FOR 10/26 MEETING from the Government that may be of inter- conclusion of all FRF activities. The statute I. FDIC Transfer of Assets Obtained in Settle- est to Hurwitz. does not establish a date for the termination ment to Treasury 1. Closed military facility in Texas. of the FRF. FRF fund always in the red due a. FDIC lawsuit against Hurwitz filed on Hurwitz already has indicated interest in fa- to huge cost of these thrift failures. behalf of the FSLIC resolution Fund cility between Houston and Galveston, 2. To date, FRF owes the Treasury approxi- (‘‘FRF’’), which was created by Financial In- Texas. FDIC has begun to discuss with De- mately $46 billion. stitution Reform, Recovery and Enforcement partment of Defense Base Closures Com- 3. FDIC has decided that if Hurwitz offered Act of 1989 as successor to Federal Savings & the redwoods to settle the FDIC claims, we mittee staff. Interior has apparently identi- Loan Insurance Fund. The FRF is to be man- would be willing to accept that proposal. Be- fied some possible land. aged by the FDIC and separately maintained cause any assets recovered from FRF insti- 2. State of California has stated its inter- and not commingled with any other FDIC tutions are required to eventually be turned est in participating in transaction by pro- properties and assets. 12 U.S.C. sec. 1821a(1). over to Treasury, the trees (i.e. the land con- viding harvestable timber land valued at be- b. Assets and liabilities of the FRF are not veyance) could conceivably be transferred to tween $40–60 million. Need to contact Gov- the assets and liabilities of the FDIC and are Treasury. ernor Wilson’s office to pursue discussions not to be consolidated with the assets and li- 4. May need legislation to assist in transfer with us. abilities of the Bank Insurance Fund or the of land and other details of such a convey- 3. Evaluation of effect of tax losses to Pa- Savings Association Insurance Fund for ac- ance. The mechanics of such a transfer is not cific Lumber and Maxxam for transfer of counting, reporting or for any other purpose. a focus of FDIC’s current efforts which are to Headwaters Forest at less than fair market Id. at 1821a(3). persuade Hurwitz of liability and to seri- value. Tax losses may be viewed by Hurwitz c. The FRF is to be dissolved upon satisfac- ously consider settlement. as advantageous to Pacific Lumber and tion of all debts and liabilities. Upon dissolu- Maxxam, and may indirectly result in minor- VI. Impediments to FDIC Direct Action Against tion, any remaining funds shall be paid to ity shareholders acquiescence to transaction. Trees Treasury. Id. at 1821a(f). 1. FDIC has no direct claim against Pacific d. There are no creditors of United Savings 4. California congressional delegation has Lumber through which it could successfully Association of Texas, including uninsured shown significant interest in Headwaters obtain or seize the trees or to preserve the depositors, that have a priority over Treas- Forest and have been receptive to efforts to Headwaters Forest. Neither Maxxam, Inc. ury in any assets recovered by FRF. Cur- conclude a ‘‘debt for nature’’ transaction. (which owns Pacific Lumber and is con- rently, FRF owes Treasury about $46 billion. Delegation may act as liaison between in- trolled by Hurwitz) nor Pacific Lumber are e. Coastal Barrier Improvement Act of 1990 volved parties and may be interested in pro- defendants in FDIC’s suit. There is no direct (Pub.L. 101–591) imposes certain restrictions posing any legislation needed to facilitate relationship between Hurwitz’ actions in- and procedures on the FDIC’s ownership and such transaction. volving the insolvency of USAT and the ability to transfer property that is within 5. No direct discussions have yet occurred Headwaters Forest owned by Pacific Lumber. the statute. 12 U.S.C. sec. 1441a–3. May en- between Hurwitz and any involved agency Pacific Lumber was acquired by Maxxam but hance FDIC’s ability to transfer to other over the Headwaters Forest transaction. His does not appear to have owned any interest Federal agency. recent interview suggests his interest in in USAT or United Financial Group, USAT’s 1. Unclear whether Headwaters Forest is such discussions with such representatives. first-tier holding company. Moreover, nei- within the scope of the Act. ther USAT nor UFG ever owned an interest 2. Moreover, for the Act to apply to FDIC, in Pacific Lumber. title to land must be held by FDIC in its cor- RECORD 36 2. FDIC’s claims alone are not likely to be porate capacity. The lawsuit and any poten- To: Jack D. Smith@LEGAL OGC sufficient to cause Hurwitz to offer the Head- tial recovery is in the capacity of FDIC as Hdq@Washington water Forest, because of their size relative Manager of the FSLIC Resolution Fund, and From: John V. Thomas@LEGAL to recent Forest Service appraisal of the not in FDIC’s corporate capacity. FDIC must PLS@Washington value of the Headwaters Forest ($600 mil- determine whether and, if so, how, FRF can Subject: re: lion); because of very substantial litigation transfer title of assets to FDIC corporate. If Date: Friday, January 5, 1996 17:21:07 EST risks including statute of limitations, Texas FRF can transfer title to Headwaters Forest Certify: N negligence—gross negligence business judg- to FDIC corporate, and Forest is within Top 5 (for the top 10 list as well, I hope). ment law, and Hurwitz’s role as a de factor scope of the Act, the Act provides mecha- 4. United Savings. OTS has filed their no- director; and the indirect connection noted nism for FDIC to transfer title of assets di- tice of charges. The statute has been allowed above, including the risk of Hurwitz facing rectly to Interior. to run by us on everyone other than Hurwitz. suit from Pacific Lumber securities holders II. Factors that Impede Settlement We have moved to stay our case in Houston, if its assets were disposed of without Pacific a. FDIC has no direct claim against Pacific and are awaiting a ruling. Two people, Lumber being compensated by either out- Lumber through which it could successfully Munitz and Gross (I think), have moved to siders or Hurwitz or entities he controls. obtain or seize the Headwaters Forest. Nei- intervene. And there is the question of ther Maxxam, Inc. nor Pacific Lumber are whether a broad deal can be made with Pa- RECORD 34 defendants in FDIC’s suit. Neither Pacific cific Lumber. To: Jack D. Smith@LEGAL OGC Lumber nor Maxxam ever owned any inter- Hdq@Washington est in USAT or UFG, its holding company. RECORD 36A From: Jeffrey Williams@LEGAL Hurwitz has not discussed directly with PLS2@Washington FDIC any settlement of the FDIC’s claims; 1/19/96.—Told Alan McReynolds that I had Subject: Hurwitz although he has endorsed, through Pacific talked to Carolyn Buck after lunch on 7/17/96. Date: Wednesday, October 25, 1995 11:51:51 Lumber’s spokesperson and an October 22, I asked whether OTS wanted to be involved EDT 1995, interview published in The Press Demo- in discussions led by CEQ to respond to Certify: N crat of Santa Rosa, California, the concept of Hurwitz suggestion about Headwaters. She JACK: I’ve talking with my DOD contacts a transaction with the Government that said curtly, ‘‘No’’. I asked if she had any ob- in the Base Closures Committee, particu- would include a land exchange. jection to FDIC participating—she said that

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00161 Fmt 0666 Sfmt 0634 E:\CR\FM\A20DE8.417 pfrm07 PsN: E20PT1 E2500 CONGRESSIONAL RECORD — Extensions of Remarks December 20, 2001 was not for her to decide. I concluded from (i) Status of ALJ proceeding. VII. Recent Developments her manner that she did not intend to ex- III. Pacific Lumber Company 1. Hurwitz, on behalf of Pacific Lumber and press an opinion and didn’t want to talk a. Maxxam its subsidiaries, filed ‘‘takings’’ cases against about it any more, so we parted without fur- 1. Hurwitz as 60% owner, controlling share- the U.S. and State of California alleging that ther discussion. I advised Elizabeth Blaug holder of public company. the designation of Headwaters Forest and about this yesterday afternoon. I said that if 2. Maxxam’s assets (Kaiser Aluminum; Owl Creek (both owned by Pacific Lumber) Hurwitz wanted to have global settlements Sam Houston Race Track; Real estate sub- as ‘‘critical habitat’’ for the endangered spe- with OTS and FDIC involved he would have sidiaries; Pacific Lumber). cies Marbled Murrelet prevented Pacific to ask for them just as happened with EY b. Hurwitz acquisition of Pacific Lumber Lumber from logging and resulted in sub- and Deloitte. 1. During Hurwitz’s USAT involvement. stantial lost revenue. The complaint seeks 2. Relationship with Drexel Burnham Lam- more than $460 million in losses resulting RECORD 37 bert and Michael Milkin. from prohibition on logging on 50,000 acres of c. Ownership of Headwaters Forest Pacific Lumber land. The case is being han- NOV/DEC 1995 1. Northern Spotted Owl and Marbled dled by the Justice Department. The filing of Jeff Wms.—11:40 Thur 60648 Murrelet. the lawsuit is viewed by Interior and Justice Nov 14 11:00 c. Hurwitz management and logging policies as an attempt by Hurwitz to nullify the 722 Jackson Place, CEQ Conf Rm. of Pacific Lumber FDIC and OTS lawsuits for purposes of the Rick Sterns: Re Judge Hughes, 906–7966. IV. Headwaters Forest ongoing discussion. Ross Delston: Parker Jane, Jack Shetman, VIII. CEQ’s Projected Time Frame 362–2260. a. Description—Northern California, near Pat Bak: 60664. Eureka; 3,300 acres of Pacific Lumber’s 1. Discussions between Hurwitz and Gov- M. Palen: 60363. 195,000 acres; unlogged, inaccessible, no ernment ongoing; Hurwitz now making site Ann Shopek: 212–973–3215. roads; endangered species; Pacific Lumber’s visits to DOD and GSA properties. 2. Interior’s land exchange negotiations Judge Hughes—use of overlapping auth only remaining valuable asset. proceeding with numerous parties. Harness b. Previous legislative initiatives—since 3. CEQ negotiators not discussing FDIC and Thur. order 1983. OTS lawsuits as part of Headwaters Forest Carolyn talked to Ken Thur. c. Hurwitz’s relationship with environ- mental community—always tense. transaction; Hurwitz representatives from 1. Numerous picketing; spiking of trees; Patton Boggs law firm indicated their expec- RECORD 38 Earth First! and others. tation that ‘‘all Government lawsuits’’ will 11/28/95—Headwaters mtg CEQ go GSA d. Department of Interior’s prior efforts to be resolved as part of transaction. route to transfer from Tres to Interior save Headwaters Forest. 4. Hurwitz’s counsel in FDIC litigation not raise settlement, but have tangibly slowed ‘‘Cystal Barriers mgt Act’’— V. FDIC and Headwaters Forest ‘‘12 U.S.C. 1441a–3’’—RTC, FDIC property— pace of suit. a. Pacific Lumber not a direct asset of 5. Interior projects transactions can close KM—extremely accurate reports came USAT’s. in September 1996. back from environmentalists—keep con- b. Environmental community focused at- fidentiality physical assets may not count as tention of Congress on existence of FDIC’s money for ‘‘scoring.’’ ongoing investigation of USAT’s failure. RECORD 40 Treasury cannot give FRF credit for the c. Chairman Helfer indicated in letter to CEQ trees. The Rose Foundation that FDIC would con- 722 Jackson Place, NW, Washington, DC If policymakers make decision to accept sider a proposal that includes the Head- 20503, Phone (202) 395–5750, FAX (202) 456– trees—increases Fed. deficit— waters Forest in a settlement of claims 6546 Insurmountable issue—there is a hole here against Hurwitz if Headwaters asset was of- FAX TRANSMISSION if you take trees. fered. Interior disagrees with FDIC analysis of Date 8/8/96 VI. Status of Headwaters Forest Initiative Costal Barriers and they think it does work. To: Jack Smith Eliz.—our group will meet again to sift a. FDIC working with CEQ, Interior, other Phone Number: thru remaining questions. No formal con- agencies in exploring viability of ‘‘debt for FAX Number: 898–7394 tacts until OTS files. nature’’ settlement. Dated US Dept. of Agri- Subject of Material: 4 Questions on Head- John G—we are leaning toward FDIC open- culture, Forest Service appraisal valued waters. Thank you so much, this will ing discussions Headwaters Forest at $499 million. really help in clearing up major Lois—scoring problems were the biggest b. FDIC made clear to all involved Govern- misperceptions! How quickly can you difficulties. ment principals that settlement value of turn this around? (I ask for so little, FDIC [and OTS] lawsuits insufficient to ob- don’t I?) EB 60342 D.G. tain Headwaters Forest, and US will have to From: Elisabeth Blaug John G—after admin suit is filed it is time find additional assets to provide Maxxam. No. of Pages (including Cover Sheet) 2 for opening any discussions—prior to that we c. Under auspices of CEQ and Interior, nu- 736–0577—Bob D. fax get back to K.M. to see if there’s any reason merous meetings with Hurwitz exploring the 456–0753—Elizabeth B. fax not to go forward with negotiations. concept that includes a swap of other gov- QUESTIONS ernment-owned properties held by GAO as Q1. Why is the Administration willing to excess or surplus land, and approved for sale RECORD 39 swap land with Charles Hurwitz when his under authority of Department of Defense ATTORNEY-CLIENT/WORK PRODUCT very actions in acquiring Pacific Lumber Base Realignment and Closure Commission. Company led to lawsuits filed against him by CONFIDENTIAL COMMUNICATION 1. Interior exploring various transactions the FDIC and Office of Thrift Supervision? DRAFT OUTLINE OF HURTWITZ/REDWOODS that include swaps of Pacific Lumber land Why doesn’t the Administration forget the BRIEFING with other private land owners; providing land exchanges and get Hurwitz to settle his Hurwitz with timber rights on other govern- I. Introduction debts in exchange for the trees? Significant development involving multi- ment owned land; State of California to pro- A1. would be inappropriate because of inde- Agency initiative led by Office of the Vice vide funds or timber rights on state-owned pendent status of regulators, pending litiga- President to obtain title to last privately land. tion/administrative proceeding. . . . owned old growth virgin redwoods and place d. Hurwitz recently agreed to provide Dept. Q2. In light of question 1, why can’t FDIC under protection of Department of Interior’s of Interior with access to conduct new, con- or OTS bring up a debt-for nature settlement National Park Service. FDIC plays promi- fidential appraisal of Headwaters Forest. with Charles Hurwitz? nent role in this Government initiative. e. Hurwitz also expressed interest in ex- A2. ?? ploring availability of FDIC properties to Q3. Charles Hurwitz’s purchase of Pacific II. Background—United Savings Association of ‘‘bridge the gap’’ between value of Head- Lumber led to a $1.6 billion collapse of a Texas, Houston, TX waters Forest and lawsuits. Texas Savings & Loan; that amount is likely a. USAT failure—December 30, 1988—cost to 1. FSLIC FRF assets—few potentially valu- more than enough to cover the acquisition of FSLIC $1.6 billion able properties; scraping bottom of barrel all the old growth redwoods on Palco prop- b. FDIC as Receiver for USAT since properties from 1989 and earlier fail- erty. Why then is the Administration look- 1. Investigation. ures. ing for excess property to exchange? 2. Litigation. 2. RTC FRF assets—more valuable prop- A3. ?? (i) Status of litigation. erties in regions Hurwitz/Maxxam currently Q4. If the regulations are not actually c. OTS—separate statutory enforcement au- conduct real estate operations. seeking $1.6 billion, what monetary damages thority (i) Can FDIC swap assets of similar aggre- are they seeking against Hurwitz? 1. ‘‘Arrangement’’ with FDIC. gate value between funds to enhance liquida- A. ?? 2. Investigation. tions of assets and likelihood of resolution of 1. There is no direct relationship between 3. Administrative enforcement action. receivership claim? the Headwaters Forest and the actions of Mr.

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00162 Fmt 0666 Sfmt 0634 E:\CR\FM\A20DE8.420 pfrm07 PsN: E20PT1 December 20, 2001 CONGRESSIONAL RECORD — Extensions of Remarks E2501

Hurwitz with respect to the insolvency of RECORD 42 negotiations for an out-of-court agreement United Savings Association of Texas To: Henry R.F. Griffin@LEGAL to the F.D.I.C. legal team. They called Katie (‘‘USAT’’). Moreover, Pacific Lumber Com- ASIS@Washington, Jeffrey Wil- McGinty last week and requested that Inte- pany is not a defendant in either lawsuit. Al- liams@LEGAL PLS@Washington, Robert rior’s attorneys be a part of any meetings though Pacific Lumber was acquired by DeHenzel@LEGAL PLS@Washington, and negotiations with Hurwitz/Maxxam ar- Maxxam, it does not appear that Pacific John V. Thomas@LEGAL ranged to test Maxxam’s interest in a global Lumber owned any interest in USAT or PLS@Washington settlement. They argue that F.D.I.C. does United Financial Group, Inc. (‘‘UFG’’), Cc: not know the asset (Headwaters Forest) or USAT’s first-tier holding company. Bcc: the current efforts by the environmentalists/ The Administration cannot dictate a debt From: Jack D. Smith@LEGAL OGC FWS/State of California to halt timber har- for nature settlement with Mr. Hurwitz be- Hdq@Washington vesting on E.S.A. grounds (the marbled cause the FDIC and OTS are independent Subject: Headwaters murrelet habitat) as well as Interior. regulatory agencies with separate and dis- Date: Monday, September 16, 1996 18:10:50 I believe that Katie may contact you about tinct statutory and fiduciary responsibil- EDT the appropriateness of the Department’s in- ities. The Administration is prohibited by Attach: volvement to get the meetings off of the law from directing the outcome of any ac- ground. tion commenced by FDIC or OTS in the per- Certify: N Thank you for your attention to these formance of either agency’s official duties. Forwarded by: issues. 2. The statutory framework for action I am advised that the draft settlement pro- commenced by FDIC and OTS require the posal we received from Patton Boggs has Attachments (3). agencies to seek recovery for losses incurred been discarded by Interior so we need not re- cc: John Garamendi, George T. Frampton, to the insurance funds and appropriate civil view it in detail. Jr., Bob Armstrong, Bonnie Cohen, John money penalties. The agencies are chartered As to the Qui Tam case, my understanding Leshy, Bob Baum, Jay Ziegler to recover money, not to establish national is that it will not be part of this deal, and parks. They often initiate settlement discus- may proceed even if there is a government sions to recover money or assets which can settlement. We will continue on our separate DOCUMENT DOI–B be converted to money. For example, the settlement track only if OTS is able to reach UNITED STATES DEPARTMENT OF THE OTS has already settled some issues related an understanding with Hurwitz about re- INTERIOR, OFFICE OF THE SEC- to the USAT failure for a $9.4 million pay- moval and prohibitions. RETARY, ment from USAT. Nevertheless, the FDIC is Washington, DC, August 2, 1995. open to any appropriate settlement of its APPENDIX 3 MEMORANDUM claims including a debt for nature swap DOCUMENT DOI–A To: George T. Frampton, Jr., Assistant Sec- should Mr. Hurwitz make such a proposal. 3. Neither the FDIC or the OTS are suing UNITED STATES DEPARTMENT OF THE retary, Fish and Wildlife and Parks Mr. Hurwitz for $1.6 billion. Although the INTERIOR, OFFICE OF THE SEC- From: Allen McReynolds, Special Assistant agencies believe that Mr. Hurwitz’ conduct RETARY, to the Secretary resulted in significant losses to USAT, both Washington, DC, January 23, 1995. Subject: California Headwaters Forest Ac- suits seek damages and restitution for mis- MEMORANDUM quisition Recently, the Secretary received a letter management and gross negligence that are To: Anne Shields, Chief of Staff from the Congressional delegation from directly attributed to specific acts and trans- From: Allen McReynolds, Special Assistant northern California requesting assistance in actions within the applicable statute of limi- to the Secretary the acquisition of a 44,000 acre parcel of tim- tations. Subject: Update on Headwaters Forest bered lands owned by Maxxam Corporation 4. The FDIC suit against Mr. Hurwitz seeks I am forwarding three (3) pieces of infor- of Texas (see attached). You may remember damages in excess of $250 million. The OTS mation which will provide an update on the that Hamburg and Boxer attempted to ap- administrative enforcement proceeding Maxxam/Pacific Lumber Company—owned propriate funds in 1994 (see H.R. 2866 at- seeks reimbursement for losses to the insur- Headwaters Forest in northern California. ance funds in an unspecified amount to be 1. OTS Filing. The U.S. Office of Thrift Su- tached). Maxxam, owned by Charles Hurwitz proven at trial. pervision of the Department of the Treasury of Houston, conducted a leveraged buyout of filed their lawsuit against United Savings Pacific Lumber in the late 1980’s to acquire 184,000 acres of timber for $900,000,000. You RECORD 41 Association of Texas and related Maxxam will recognize that these tracts are a part of To: John V. Thomas@LEGAL parties on December 26, 1995. Maxxam’s at- torneys have requested 60 days in order to the habitat for the marbled murrelet (see at- PLS@Washington, Stephen N. tached article). Graham@DAS Ops@Washington, Richard respond to the charges; the deadline is Feb- ruary 19. The next step will be for the judge To repay the bonds secured for the pur- T. Aboussie@LEGAL ASIS@Washington, chase, Mr. Hurwitz has stepped up the cut- Henry R.F. Griffin@LEGAL to schedule a hearing to review the charges and responses. ting schedule worked out with P.L.’s former ASIS@Washington, Robert owners. On September 15, 1995, the morato- DeHenzel@LEGAL PLS@Washington, 2. Houston Chronicle Editorial. Attached is the editorial written by Charles Hurwitz, rium on logging the old-growth portion of Jeffery Williams@LEGAL Maxxam’s un-logged tracts will expire. Thus, PLS@Washington C.E.O. of Maxxam, which appeared in the Houston Chronicle on January 14. In his edi- the Congressional delegation and the envi- Cc: William F. Kroener III@LEGAL OGC ronmental community are inquiring if Inte- Hdq@Washington, Leslie A. torial, he describes the environmentalists’ activities as hostile and inappropriate ac- rior can devise some creative acquisition Woolley@Washington, Robert Russell strategies. They also wrote to the Forest Detail@EO@Washington tions. The Debt-for-Nature swap concept is discussed on page 3. Service, but the Forest Service had no sug- Bcc: gestions on how to acquire the property. From: Jack D. Smith@LEGAL OGC 3. H.R. 2712—Acquisition of Headwaters For- Hdq@Washington est. Congressman Frank Riggs of Eureka in- I. Acquisition Strategy Subject: USAT troduced a bill on December 5, 1995 for the In response to the delegation’s request, Date: Friday, September 6, 1996 9:05:59 EDT acquisition of Headwaters Forest through a several staff from Interior began to review Attach: land exchange and timber exchange on the possibilities that exist for acquiring the Certify: N BALM lands in northern California. My con- 40,000 acre tract through creative land ex- Forwarded by: tact on the committee tells me that no ac- changes. A summary of these follows: tion has occurred thus far, but that it is like- John Douglas called and we are going to A. Governor’s Headwaters Task Force have a settlement meeting Monday or Tues- ly that this bill will be pushed by Mr. Riggs day with Douglas and OTS. Douglas indi- and his colleagues later this month. Governor Wilson created a Headwaters cates that he will propose that the FDIC 4. Next Step. You may recall that the filing Task Force several months ago to look at take certain redwood trees which we will ex- by O.T.S. of their suit was the step which strategies for acquiring these acres. Rep- change for other marketable property from would release O.T.S. and F.D.I.C.’s legal resenting Interior are Ed Hasty, BLM State perhaps Interior. FDIC would then be able to staffs to initiate a meeting with Mr. Hurwitz Director, and Phil Detrick, FWS. The Gov- sell the property it gets from Interior. and/or his counsel. I have spoken to O.T.S. ernor’s Office has decided to seek State leg- Douglas says there are tight deadlines and attorneys managing this suit, and they con- islation to trade approximately $70,000,000 in he wants to try and wind up the negotiations tinue to insist on an arms-length relation- lands owned by The California State Lands by Wednesday. The FDIC settlement delega- ship with any public efforts to acquire Head- Commission for Headwaters tracts. The Gov- tion will be the General Counsel, myself, waters through a Debt-for-Nature Swap. ernor’s Office would like for Interior to put Steve Graham and Jeff Williams. If a real- They are of the opinion that it would dis- lands up for trade to match their strategy. istic proposal is submitted approvals. There- advantage their chances of a fair and legal Terry Gorton, the Governor’s negotiator, has fore, Jeff is blocking out a settlement au- proceeding if they were to be engaged in met with Hurwitz and thinks the acreage thorization memo with the terms to be filled high-level discussions with Administration could be had for a sum less than the Forest in later. staff. Thus, that leaves the meeting and any Service’s appraisal of $500,000,000.

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00163 Fmt 0666 Sfmt 0634 E:\CR\FM\A20DE8.423 pfrm07 PsN: E20PT1 E2502 CONGRESSIONAL RECORD — Extensions of Remarks December 20, 2001 B. DOI Acquisition by Land Exchange fair market value of the 40,000 acres of old Thank you for your attention to this The California Desert Protection Act and growth redwood timber that the Department project. It appears to represent an oppor- the Natural Communities Conservation Pro- is seeking to protect. Thus, there has been tunity for the Department to resolve long- gram (NCCP) have consumed all of BLM’s some support for a debt-for-nature swap for standing problems on the Headwaters Forest. FDIC and OTS’s claims for the 40,000 acres. lands which were available for disposal in Attachments California. Thus, BLM, nor FWS for that FDIC and OTS are amenable to this strategy —March 24, 1995 Letter to Secretary Babbitt matter, has any trading stock within Cali- if the Administration supports it. —Headwaters Forest Act, H.R. 2866 fornia which is available for such a trans- Attached is a copy of the Complaint and —Briefing Paper on the History of the Act action. Jury Demand on behalf of the FDIC. The —FDIC Action Board of the FDIC approved this action late C. Military Base Closure Land Exchanges —Wall Street Journal Clipping yesterday. The OTS is expected to take simi- —The Oregonian Clipping The American Lands Conservancy (ALC), lar action no later than mid-October. also a member of the Governor’s Task Force, —BLM Statement on Old Growth Reserve has reviewed with the Governor’s Office the III. Next Steps System potential of acquiring small acreages at clos- Those of us working on this (Jay Ziegler, cc: Jay Ziegler, Geoff Webb, Tom Tuckman, ing military bases in northern California. Tom Tuckman, Geoff Webb, and me) are Larry Mellinger Hamilton AirField, located in the Bay Area, seeking guidance from you on how to pro- Following is a list of individuals with recently sold a tract for $10,000,000 to a local ceed. The possible next steps are as follows: whom I have worked in the recent past on developer. The Governor would like to cap- Request a group meeting (Interior, FDIC, projects for the Secretary’s Office who I con- ture these funds and others as bases are sold OTS) with the Department of Justice to sider very trustworthy. I cannot say that piecemeal across the area. Because of our un- learn their view on a Debt-for-Nature Swap they have a specific background in base con- successful efforts at El Toro Marine Corps concept for FDIC and OTS’s claims. version sites, but they are certainly well Air Station, we have made it clear that Inte- Annoint a DOI Team to represent the De- schooled in commercial real estate develop- rior will not front this concept for consider- partment in the negotiations with Hurwitz ment, hotel development, and residential de- ation. It is anticipated that ALC will provide (should FDIC and OTS wish to have us at the velopment in California. a report to the delegation regarding the op- table). Bruce Karatz, President, Chairman & CEO, portunities at Bay Area military base clo- Determine which Interior agency would be Kaufman and Broad, 10877 Wilshire Bou- sures. the most appropriate for the long-term own- levard, 12th Floor, Los Angeles, CA 90024, II. Debt for Nature Swap ership and restoration of the acreage. (BLM 310/443–8000, 310/443–8090(fax) The Federal Deposit Insurance Corporation has suggested that they are in the best posi- Richard M. Ortwein, President, Koll Real Es- and the Office of Thrift Supervision have tion to do so. A similar argument can be tate Group, 4343 Von Karman Avenue, claims against Charles Hurwitz and United made for the Park Service. The Forest Serv- Newport Beach, CA 92660, 714/833–3030, Savings of Texas which they are preparing to ice may have notions that they are most ap- ext. 249, 714/474–1084 (fax) pursue (see attached article). The FDIC propriate.) Your recommendation early will William (Bill) D. Sanders, Chairman, Secu- claims result from mortgage-backed securi- reduce conflict about expectations. rity Capital Group, Inc., 125 Lincoln Ave- ties trading. The OTS claims result from Determine what Interior’s involvement nue, 3rd Floor, Santa Fe, New Mexico networth-maintenance claims. The total of may mean for the Department from a policy 87501, 505/820–8214 these two claims is in excess of the appraised perspective. TABLE 27—TIMBER FOREST LAND AND HARVESTED BY STATE—FISCAL YEAR 1996 1

Timber sold Timber harvested 2 State or Commonwealth 3 4 Bid value (Actual 4 Receipts Sales Volume (MBF) dollars) Volume (MBF) (Actual dollars)

Alabama ...... 738 58,25516 5,220,330.40 60,244,36 5,490.493.12 Alaska ...... 73 96,221.17 3,193,047.40 223,085.32 12,720,486.11 Arizona ...... 12,949 52,419.49 2,170,611.75 69,106.74 7,446,270.20 Arkansas ...... 2,660 185,103.51 26,013,244.60 151,300.05 18,005,184.88 California ...... 49,576 379,258.44 38,576,576.44 451,087.80 104,815,692.01 Colorado ...... 12,9918 53,941.20 8,138,155.95 95,977.22 9,423,741.94 Florida ...... 111 49,981.98 4,234,629.90 86,472.94 4,306,776.06 Georgia ...... 711 31,016.23 2,820,821.23 28,347.81 2,664,177.27 Idaho ...... 22,380 222,615,72 41,560,133.94 341,691.81 52,130,728.74 Illinois ...... 102 105,00 1,060.00 2,706.85 50,545.45 Indiana ...... 28 901.11 18,032,23 318.81 10,711.33 Kentucky ...... 627 10,593,61 1055,056.30 12,161.61 950,831.40 Louisiana ...... 545 63,634.92 10,207.970.60 64.283.28 7,495,880.81 Maine ...... 10 1,058,00 36,312.80 1,838,32 119,770.03 Michigan ...... 788 156,494,94 9,926,226.26 209,024.84 8,771,130.09 Minnesota ...... 226 134,345,76 9,002,381.02 158,784.20 5,700,740.60 Mississippi ...... 2,187 210,914.00 29,003,000.99 193,481.18 27,144,509,31 Missouri ...... 1,008 49,428.74 5,276,548.68 55,220.06 4,521,709.80 Montana ...... 13,673 129,802.01 22,743,183.11 165,720.79 34,919,522.78 Nebraska ...... 6 9.00 90.00 9.00 90.000 Nevada ...... 1,976 2,398.45 31,964.90 5,185.33 91,550.48 New Hampshire ...... 167 24,061.86 1,305,896.26 18,074.46 806,351.80 New Mexico ...... 15,325 33,125.53 1,063,826.41 50,450.45 1,212,648.08 New York ...... 2 350.00 37,986.04 130.00 1,212,648.08 North Carolina ...... 2 359.00 37,985.04 130.00 15,951.23 North Dakota ...... 31 44.00 440.00 44.00 440.00 Ohio ...... 81 1,506.59 145,7737.84 749.00 15,270.01 Oklahoma ...... 86 13,123.41 2,061,781.43 17,661.37 2,185,716.19 Oregon ...... 31,667 287,530.27 46,025,886.49 890.346.37 190.049.139.70 Pennsylvania ...... 116 48,266,54 19,267,848.09 53,969.00 19,416,426.38 South Carolina ...... 422 42,326,28 4,494,402.00 40,421.87 4,337,908.67 South Dakota ...... 1,975 80,038.14 20.797.208.22 64,769.22 10,233,556.00 Tennessee ...... 3389 10,708.10 682,872.16 17,646,38 1,104,127.42 Texas ...... 271 71,145.50 14,440,168.25 85,313.13 10,571,472.23 Utah ...... 7,193 35,800.38 3,823,404.79 32,032.53 2,031,590.20 Vermont ...... 100 4,240.23 848,496.94 4,779.77 413,084.25 Virginia ...... 2,849 35,161.57 2,720,811.90 49,923.65 3,125,306.77 Washington ...... 9,541 113,490.23 13,777,6336.51 186,719.57 39,451,797,22 West Virginia ...... 453 25,957.23 6,354,919.12 27,547.01 4,522,428.71 Wisconsin ...... 627 96,12.35 5,570,711.41 129,645.84 4,628,848.22 Wyoming ...... 627 98,121,35 5,570,711.41 129.645.54 4,522,448.71

Total ...... 216.272 2,885,261.53 280,736,06 3,985,912.03 616,117,347.02

1 Excludes nonconvertible products such as Christmas, trees, cones, burls etc. 2 States no listed had no timber sold or harvested in fiscal year 1996. 3 Includes reforestations and stand improvement costs and timber salvage. Does not include value of roads or brush disposal. 4 MBF = thousand board feet.

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00164 Fmt 0666 Sfmt 9920 E:\CR\FM\A20DE8.427 pfrm07 PsN: E20PT1 December 20, 2001 CONGRESSIONAL RECORD — Extensions of Remarks E2503

UNITED STATES DEPARTMENT OF AGRI- I shared this information with Mr. deLuca. DOCUMENT DOI–D CULTURE: REPORT OF THE FOREST SERVICE, The Congressman intends to call Mr. Emer- UNITED STATES DEPARTMENT OF THE FISCAL YEAR 1995 son to follow up and explore options. Also, INTERIOR, OFFICE OF THE SEC- Conservation Leader . . . sustained health, the staff will investigate if Mr. Emerson’s RETARY, diversity, and productivity of all forest lands holdings were included in Hamburg’s Head- Washington, DC, August 23, 1995. waters legislation. I will call Ed Hasty and DUN & MARTINEK LLP, MEMORANDUM attempt to learn more about BLM’s relation- ATTORNEYS AT LAW, ship with Mr. Emerson and whether we have To: George T. Frampton, Jr., Assistant Sec- Eureka, CA, July 17, 1996. a resource evaluation of these holdings. retary, Fish and Wildlife and Parks Hon. J. MICHAEL BROWN, From: Allen McReynolds, Special Assist- Judge of the Superior Court, Humboldt County 2. Telephone Conference Call With OTS and ant—Land Exchanges Superior Court, Eureka, CA. FDIC. Subject: Headwaters Forest Acquisition Re: Epic v. California Department of For- In the past several weeks, the staff at Inte- estry, Humboldt County Superior Court Yesterday afternoon we held a telephone rior have continued to receive telephone Case No. 96CR0420 conference call with staff of the Federal De- calls from the Northern California delega- DEAR JUDGE BROWN: We just received a posit Insurance Corporation and Office of tion encouraging Interior to pursue strate- copy of your minute order dated July 15, Thrift Supervision to share information. gies for acquisition of the old growth acreage 1996. We have been advised by the Clerk of Participating in the call were Richard Sterns owned by Charles Hurwitz and the Maxxam the Appellate Court that Petitioners applied and Bruce Renaldi of OTS, Jack Smith of Corporation. Among those considered, the for a temporary stay from the Appellate FDIC, Larry Mellinger and me of DOI. Also Debt-for-Nature Swap strategy is the con- Court and were denied. The Appellate Court, invited but not joining in were Tom Jensen cept which their telephone calls focus on according to the Clerk, has denied any and of CEQ, Jay and Geoff. most. all injunctive relief on this Plan. The OTS staff were reluctant to share Today, Congressman Stark’s staff for- It would therefore seem that there is no their work on a claim against Hurwitz/ warded copies of the letters which they are need for the Superior Court to issue a tem- Maxxam because of the appearance that In- generating for their colleagues in the North- porary stay because there will be no stay terior might be attempting to influence pol- ern California delegation to forward to the forthcoming from the Appellate Court. icy at OTS. We applauded them for that fore- F.D.I.C. In addition, the LA Times notified Workers have been on site since Monday, their office today that it will publish an edi- July 15, 1996. sight and did not press for information. They did state that OTS has not filed a claim yet; torial (see attached) on the subject penned Please advise immediately as to whether by Mr. Stark and Mr. Brown as early as to- however, if they decide to file, it will be we must now suspend operations until July morrow or Monday. soon. As soon as that decision is made, they 22, 1996. While we continue to downplay our role in offered to notify DOI and FDIC. I requested Very truly yours, these efforts with the delegation’s staff, they that they continue to seek information from DAVID H. DUN. continue to call upon us to play a leadership us should it be useful. role. I sense that because Interior might own The FDIC reminded all of us that their any land acquired through negotiations, DOCUMENT DOI–C claim against Maxxam is ‘‘owned’’ by they feel that Interior should be orches- UNITED STATES DEPARTMENT OF THE FSLIC’s Resolution Account. This account trating the solution. My impression is that INTERIOR, OFFICE OF THE SEC- has $48B already on deposit from claims. there is an expectation by the delegation RETARY, Therefore, it might be viewed positively by that Interior is the most appropriate agency Washington, DC, August 16, 1995. Congress for Treasury to accept redwood for- to negotiate the Federal Government’s case MEMORANDUM est property in lieu of cash payment and, with Maxxam, instead of the F.D.I.C. or To: Jay Ziegler, Geoff Webb, Tom Tuckman then, redirect title of the acreage to DOI. O.T.S. or even Justice. In fact, the delega- tion may soon expect Interior to arrange a From: Allen McReynolds, Special Assist- The OTS staff would not comment on such meeting with Maxxam—a rather bold move. ant—Land Exchanges a strategy for their claim against Maxxam. Subject: Update on California Headwaters I would enjoy an opportunity to visit with Forest Project There was some interest in the notion that you about this issue at your earliest conven- A couple of new developments have the delegation would request acreage at ience to avoid any confusion about the pres- emerged in the past several days. The fol- northern California military base closures to sure that we are receiving and can expect to lowing is an update on these issues: offer as land swaps to Hurwitz. No matter continue to receive. how much caution I expressed on this topic, 1. Red Emerson Acreage. Thank you for your attention. the FDIC and OTS staff encouraged support. Attachments: Update on Project, Analysis of I believe that I shared a letter with you I explained that the American Lands Conser- Red Emerson’s Property, U.S. Forest that I received on August 4 from EPIC re- vancy would probably present a proposal to Service Report, LA Times Editorial, Del- garding logging in Headwaters Grove. The the delegation soon, but that DOI would not egation Letter to F.D.I.C. letter requests assistance in resolving the be a party to it. cc: Tom Tuchmann, Jay Ziegler, Geoff Webb conflict of the current logging of S.P.I.’s holdings in the grove, which is permissible I shared the conversation that I had re- under Timber Harvest Plan 1–93–096, and cently with Terry Gorton of Governor Wil- TALKING POINTS OF HEADWATERS FOREST preservation of the watershed protection son’s office. FDIC and OTS are wondering Headwaters Forest is a 3,000 acre stand of along the Little South Fork of the Elk why DOI is not being more aggressive with old growth redwood forest, near Humboldt, River. I left for vacation before looking into Hurwitz and is permitting Wilson’s Task CA. Pacific Lumber Company and its subsidi- the issue so I was unprepared with a response Force to take the lead. Based on this, per- aries, which is owned by MAXXAM, Inc, when Perry deLuca of Congressman Stark’s haps we should revisit DOI’s position and our owns Headwaters, and the additional 195,000 office called on Monday requesting assist- participation in the negotiations. Because acres of timberland which surround Head- ance. He requested that I call Mr. Red Emer- Patton/Boggs attorneys are reaching out to waters. Headwaters was appraised several son of Sierra Pacific Industries and question DOI for a meeting, DOI could meet with years ago at $499 million. Many believe the him about any possible opportunity to ac- them for exploratory purposes. figure is inflated, due to other cir- quire this land. cumstances, including injunctions in connec- 3. Meeting with Justice. In brief, Mr. Emerson and his children are tion with marbled murrelet habitat, which the sole owners of Sierra Pacific Industries. You will recall that Tom Epstein encour- until recently precluded any logging of S.P.I. owns over 1,200,000 acres of timber aged DOI staff to meet with Justice officials Headwaters. lands in California and 10 sawmills ranging to insure no potential conflict on DOI’s side Charles Hurwitz is a major owner in from the Tahoe Basin north and west. Cur- of this issue. Larry Mellinger visited with MAXXAM; the FDIC and Office of Thrift Su- rently, S.P.I. is working on three land ex- Jack Smith at some length about this. He pervision both filed lawsuits (now pending) changes with BLM and the Forest Service learned that FDIC does not intend for Jus- in the hundreds of millions of dollars against across northern California to consolidate tice to represent them on this case. Most Hurwitz and MAXXAM, alleging, among checkerboard holdings. At Little South Fork likely, OTS will also keep their claim inter- other things, a connection between the fail- (about which EPIC is concerned), there are nally also. Therefore, Mr. Smith wonders if ure of United Savings Association of Texas, 9,600 acres under ownership personal of Mr. DOI really needs to be concerned about this. a MAXXAM subsidiary, and the purchase of Emerson, not S.P.I. He has a 56% ownership; Larry has offered to confer with Bob Baum Pacific Lumber. his partner has a 44% stake. The acreage is and John Leshy and relate their sense of Headwaters is of great importance to Cali- timbered by second and third growth. He whether a meeting or concern is warranted. fornians (particularly northern California), would be willing to either sell or exchange including Governor Wilson. Over the last 6–8 the acreage if we wish to do so. However, he Thanks for your attention. Please call me months or so, the Democratic congressional did state that, in his opinion, the land has no if you want further elaboration on any of delegation (individually and collectively) resource value because it does not contain these points. and environmentalists have called on the Ad- any old growth attributes. cc: Larry Mellinger, Solicitor’s Office ministration to acquire Headwaters.

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00165 Fmt 0666 Sfmt 0634 E:\CR\FM\A20DE8.428 pfrm07 PsN: E20PT1 E2504 CONGRESSIONAL RECORD — Extensions of Remarks December 20, 2001

In February Katie McGinty and John DOCUMENT DOI–F From: Allen McReynolds, Adm, Special As- Garamendi met with Hurwitz and his Wash- UNITED STATES DEPARTMENT OF THE sistant—Land Exchanges ington representative, Tommy Boggs. Sev- INTERIOR, OFFICE OF THE SEC- Subject: Update on Headwaters Forest eral ideas for Headwaters acquisitions or RETARY, Project conservation were discussed, including a Washington DC, September 25, 1995 The following is a brief update on the ac- land swap, which could potentially incor- Memorandum For: Katie McGinty, Council tivities of the local environmental groups porate a ‘‘debt-for-nature’’ piece in which on Environmental Quality, T.J. and Congressional delegation to bring atten- pending litigation against Hurwitz could be Glauthier, Office of Management and tion to the Headwaters Forest Project. settled. Budget A. Congressional Delegation From: Assistant Secretary for Fish & Wild- 1. Letter to Panetta. Five members of the In April a confidentiality agreement was life & Parks Delegation forwarded a letter (see attached) signed between the Department of Justice Subject: Proposed Meeting. to Leon Panetta yesterday requesting the and Hurwitz’s representatives; subsequently News media and congressional attention Administration’s support for a Debt-for-Na- representatives from CEQ, FDIC, Depart- will likely focus on the Headwaters Grove in ture Swap for Pacific Lumber Company’s ments of Justice and Interior, and White Northern California this week as Pacific holdings at Headwaters Forest. House Counsel have been meeting with Lumber (Maxxam Corp.) is likely to gain 2. Support of Vice President. Jill Ratner, Hurwitz and his representatives to identify court approval for its a timber salvage oper- President of The Rose Foundation of San potential government surplus properties ation there. The U.S. Fish and Wildlife Serv- Francisco, met with the Vice President last which could be part of the deal. Hurwitz has ice and State Fish and Game biologists have week in California to request his support for expressed particular interest in Treasure Is- been working closely with P–L at their re- a Debt-for-Nature Swap. land, and several military bases in California quest to ensure that this harvest program 3. F.D.I.C. and O.T.S. As you know, we have and Texas. California tentatively offered to will not cause the ‘‘take‘‘ of marbled engaged in bi-weekly telephone conference throw into the ‘‘pot’’ the timber rights to murrelets which would trigger enforcement calls with staff handling the cases at the LaTour state forest, in the Sierra Range under the Endangered Species Act. This par- F.D.I.C. and the Office of Thrift Supervision. north of Redding. ticular salvage operation involves only the FDIC’s case was filed in August; OTS has not removal of fallen trees (primarily through specified when they would file their claims. In recent weeks several key decision have helicopter logging) and does not encompass 4. Policy Support. The Delegation continues occurred: (1) 9th Circuit ruled timber salvage any cutting of standing trees. Nonetheless, to call me almost every day to inquire what can now take place on Headwaters; logging we anticipate substantial protests in the for- we have done to move this along within the can proceed on September 15, the last day of est and the surrounding area. (Approxi- previous 24 hours. They continue to press In- the marbled murrelet mating season; (2) mately 2,000 environmental protesters orga- terior to take a more proactive approach However, the lifting of the Endangered Spe- nized a demonstration outside of a marbled with the Administration about a policy call cies Act moratorium means the marbled murrelet critical habitat hearing last week of using Headwaters Forest as a negotiable murrelet will be listed in the next couple in Eureka, CA.) asset for F.D.I.C. claims against Maxxam. weeks. Hurwitz must prepare a timber har- Since it is very unlikely that there will be 5. Federal Assets. We have agreed to review ‘‘take’’—based on the willingness of P–L to the list of possible Federal assets that can be vest plan and a Habitat Conservation Plan work with State and Federal biologists—we made available to purchase lands from Pa- before logging. are in a position where we need to carefully cific Lumber. Last week Hurwitz filed a takings claim weigh our options for future actions relating B. State Legislature against the U.S. Fish and Wildlife Service, to the Headwaters. The Wilson Administra- 1. State Legislation. The Headwaters Bill arguing the ESA is reducing the value of his tion has maintained a public position that sponsored by Scher was killed in the Senate property. The lawsuit inexplicably values they are very interested in acquiring the by Governor Wilson’s staff last week. The Headwater at only $166 million. An appraisal Headwaters Forest, but to date have not Governor had requested authorization to ex- until now be acquired by Department of Jus- been able to structure a purchase or land ex- change up to $70M of timber for Pacific Lum- tice, which was previously being initiated by change package that attracts much interest ber holdings at Headwaters. Because the Bill from Maxxam. Since two of these suits the Bureau of Land Management and Cali- did not spell out specific sources and author- (FDIC and False Claims challenge) have been fornia. ization amounts, it has been said that the publicly filed within the last few weeks, I be- Governor was embarrassed by the legisla- Katie McGinty and John Garamendi con- lieve that we have reached a juncture where tion, and, therefore, directed that it be vened an interagency meeting yesterday to we need to consider whether it is prudent to killed. discuss strategies in light of the lawsuit. utilize this legal leverage in the context of a 2. Letter to Pacific Lumber. As a followup to Discussions between Hurwitz and Adminis- Headwaters acquisition strategy. the Bill’s demise, Doug Wheeler wrote a let- Two recent lawsuits have been filed tration representatives have ceased pending ter to Pacific Lumber’s Chairman requesting against Maxxam and Hurwitz arising out of a hard look at key issues, including a De- a meeting to review creative strategies for the failure of his United States Association partment of Justice review of the litigation acquisition between the State and Maxxam/ aspects, and a meeting between Hurwitz and of Texas:—A $250 million claim by the FDIC; and an even larger private lawsuit under the Pacific Lumber. It is our understanding that Garamendi is scheduled, in order to ascer- the State has no assets to make readily tain Hurwitz’s intent. False Claims Act seeking restitution for fed- eral taxpayers in the billions of dollars. available for a proposal such as this. In In light of increased calls for a ‘‘debt for short, the Governor’s staff continue to want nature swap in which the federal government to score a victory here but have no specific DOCUMENT DOI–E would seek to acquire Headwaters in ex- assets or acquisition strategies. change for release of the FDIC claims (see C. Local Environmental Groups NOTE TO GEOFF, JAY, AND TOM: I visited yesterday’s San Francisco Chronicle edi- 1. E.P.I.C. Lawsuit. The San Francisco Fed- briefly with George yesterday as he was run- torial, attached), I think we need to consider eral District Court lifted the seal on the law- ning out of town to go on vacation about whether the Administration can and should suit (see attached) initiated by E.P.I.C. Headwaters. He said that he had quickly take coordinated action to evaluate and pos- against Charles Hurwitz and Maxxam. The looked over my memo and had a few sibly consider such an approach. suit calls for claims under the False Claims thoughts about it. First, he was comfortable I propose that one of you convene inter- Act and spells out specific wrong doing in that we would continue to look for options ested Federal parties including the U.S. For- structuring the use of United Savings Asso- to purchase the property, including the FDIC est Service, FDIC, Office of Thrift Super- ciation of Texas to purchase Pacific Lumber. and OTS lawsuits. He does not have a prob- vision, U.S. Fish and Wildlife Service, CEQ, There are strong references to Ivan Boesky lem with us attending meetings to pursue DOJ and OMB to analyze options that might and Michael Milken and insider trading in- the Debt-for-Nature Swap concept as long as be available to us. Given the crescendo of fluences. we do not attempt to take the lead on such public attention that is ahead of us, I sug- 2. Demonstrations. The local environmental a proposal. Second, he feels that the Debt- gest we try to do this ASAP albeit consistent groups, including E.P.I.C., and EarthFirst, for-Nature Swap has such a low likelihood of with your incredibly busy schedules. continue to host weekly demonstrations. success that he would encourage us to not in- GEORGE T. FRAMPTON, Jr. They hope that Interior will roll out a spe- vest a great deal of time on it. Having said Attachment. cific program soon so that efforts can turn that, he hoped that the situation would not more friendly. have moved much while he was on vacation. DOCUMENT DOI–G 3. Court Hearing. This Thursday a court hearing is scheduled to review the merits of UNITED STATES DEPARTMENT OF THE Attached is a copy of the letter that I re- the harvest plan submitted by Sierra Pacific INTERIOR, OFFICE OF THE SEC- ceived from EPI yesterday. I know little Lumber on their acreage adjacent to Pacific about our relationship with Sierra Pacific RETARY, Lumber’s holdings. The recovery plan calls Industry and its subsidiary Elk River Tim- Washington, DC, September 26, 1995. for aerial reconnaissance (helicopters) and ber. What suggestions do you all have about MEMORANDUM other technologically advanced ways of re- our response? To: George T. Frampton, Jr., Assistant Sec- moving the fallen trees from within the ALLEN. retary, Fish and Wildlife and Parks murrelet habitat.

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00166 Fmt 0666 Sfmt 0634 E:\CR\FM\A20DE8.433 pfrm07 PsN: E20PT1 December 20, 2001 CONGRESSIONAL RECORD — Extensions of Remarks E2505 4. Elk River Timber Company. The Elk River memorandum to Kathleen McGinty, dated were referring to the inclusion of a settle- holdings total 9,600 acres of land adjacent to November 6, 1995, there are two other prac- ment for both the FDIC and Office of Thrift Pacific Lumber and Sierra Pacific’s hold- tical statutory means by which Interior Supervision (OTS) lawsuits in the negotia- ings. The property owners are Red could administer the Headwaters forest, tions for the land acquired. Emmerson and Jim Lehar, two local inves- should either FDIC or Treasury acquire the This process raises certain legal and finan- tors. E.P.I.C. has requested our support to property as part of a debt-for-nature trans- cial questions regarding the ability of the acquire these acres as they are a critical action. Administration to include settlement of linkage and habitat sources. Mr. Emmerson The Refuge Administration Act these two lawsuits within the current nego- has expressed interest by telephone to me in tiations. In the past several months, the The Refuge Administration Act con- conducting a land exchange with Interior/FS, issues relating to the FDIC lawsuit were ana- templates the inclusion of areas within the but I need direction to proceed. BLM does lyzed by the headwaters multi-agency work- National Wildlife Refuge System which are not own any land that we want to dispose of ing group and a formal response was pre- established pursuant to a cooperative agree- in this region of California. Forest Service pared (see attached). The OTS was not will- ment with any state of local government, does have lands which could be appropriate. ing to participate in open discussions with any Federal Department or agency, or any Thank you for your attention. I look for- the working group so none of the issues re- other governmental entity (16 U.S.C. ward to the opportunity to visit with you garding the OTS lawsuit are known at this § 668dd(a)(3)(B)). Further, provisions of this about the options which we have been ana- time. Restated briefly, the answers are as subsection allow the specific terms of such a lyzing for interior’s role in this project. follows: cooperative agreement to direct the course Question 1. Is it feasible for Hurwitz to cc: Jay Ziegler, Tom Tuchmann, Geoff Webb of any future disposition of the property sub- transfer the Headwaters Forest to the FDIC ject to the agreement, notwithstanding in exchange for a settlement of the FDIC’s DOCUMENT DOI–H other restrictions governing the transfer of lawsuit and/or other assets? Yes. Hurwitz, lands within the System. through his control over Maxxam’s and its EXECUTIVE OFFICE OF THE Presumably such a cooperative agreement subsidiaries’ boards of directors, has pre- PRESIDENT, COUNCIL ON for the management of Headwaters could be viously influenced the transfer of Pacific ENVIRONMENTAL QUALITY, entered into between DOI and the Treasury Lumber assets to resolve other liabilities. Washington, DC, October 25, 1995. Department or FDIC, assuming FDIC at The FDIC’s Chairman has stated that in the To: Dave Sherman, Forest Service, 205–1604; least falls within the definition of a ‘‘govern- event the Headwaters Forest is offered to the Allen McReynolds, DOI 208–2681; Larry mental entity.’’ While management of Head- FDIC as part of a settlement of the FDIC’s Mellinger, DOI 208–3877; Bruce Beard, waters by the FWS, through a cooperative claims against Hurwitz, the FDIC Board of OMB, 395–6899; Jack Smith, FDIC, 898– agreement would probably be the most sim- Directors would consider accepting such as- 7394; David Long, DOJ, 514–0280; John plified process for attaining DOI manage- sets to resolve the claims against Hurwitz. Bowman, Treasury, 622–1974 ment of the area, the FDIC or Treasury (Page 3, Issue 1) From: Elisabeth Blaug, Associate General would retain underlying jurisdiction over the Question 2. Can the F.D.I.C. transfer Head- Counsel lands. waters Forest to Interior under existing au- Subj: Headwaters Forest Meeting October 26 The Antiquities Act of 1906 thorities, without legislation? Yes. The Most of you attended a meeting this past F.D.I.C. could legally transfer title to the Friday at CEQ Chair Katie McGinty’s office, The Antiquities Act of 1906 (16 U.S.C. § 431) Headwaters Forest from the FSLIC Resolu- at which we initiated discussions on a poten- provides: ‘‘The President . . . is authorized, tion Fund (FRF) to Treasury if the F.D.I.C. tial debt-for-nature swap. As you will recall, in his discretion, to declare by public procla- determined that the state of the FRF at the the FDIC recently filed a $250 million suit mation historic landmarks, historic and pre- time of transfer were such that the value of against Charles Hurwitz for his role in the historic structures, and other objects of his- Headwaters was not better retained in the failure of the United Savings Association of toric or scientific interest that are situated FRF for discharge of FRF liabilities. A case Texas (in addition, there is a private False upon lands owned or controlled by the Gov- could be made in favor of such a determina- Claims challenge pending). Mr. Hurwitz is a ernment of the United States to be national tion at present, although the FDIC Board of major stock owner in Maxxam, which ac- monuments, and may reserve as a part there- Directors might prefer to foster all FRF as- quired Pacific Lumber Company, which owns of parcels of land, the limits of which in all sets in view of contingent liabilities. Absent and logs the Headwaters Forest. Because this cases shall be confined to the smallest area such a determination, an alternative might forest contains approximately 3,000 acres of compatible with the proper care and manage- be for the FDIC to hold the Headwaters For- virgin redwoods, there is great interest to ment of the objects to be protected.’’ est for the time being, under management by preserve it. Among a number of options to President Jimmy Carter declared two such the Department of the Interior. (Page 8, consider for ensuring this happens is a poten- National Monuments by Presidential Procla- Issue 2) tial debt-for-nature swap, by which FDIC mation on December 1, 1978. The Yukon- Question 3. What legislative mechanisms would seek to acquire Headwaters from Mr. Charley National Monument encompassed exist that may facilitate a transfer of the Hurwitz in exchange for release of its claims. 1,720,000 acres, while the Yukon Flats Monu- Headwaters Forest to the U.S. Department At our meeting last Friday, a number of ment encompassed 10,600,000 acres. Within of the Interior with minimal financial out- complex legal issues were raised concerning such proclamations the President has the lay? Three (3) legislative authorizations pro- this proposed swap, which relate in some discretion to set forth responsibility for vide a mechanism for an inter-agency trans- part to your agency. Essentially, we need to management of the National Monument. fer of title to the Headwaters Forest to the examine if and how there might be a chain of Thus, presumably, regardless of whether Department of the Interior. The three origi- ownership from FDIC to Treasury to a land Headwaters was under the jurisdiction of nal citations have since been analyzed and management agency. Hence, there is a fol- FDIC or the Treasury Department, the Presi- two different authorities have been found to low-up meeting tomorrow (Thursday) at 10:00 dent could declare it a National Monument, provide better legal authority. The three au- a.m. at FDIC, 550 17th Street, room 3036. We under the administration of the Secretary of thorities now considered appropriate are the will attempt to identify the legal issues that the Interior. Such Presidential proclama- Transfer of Real Property Act (16 U.S.C. need to be addressed to determine whether a tions are not subject to the provisions of the 667b); Federal Property and Administrative debt-for-nature swap is feasible. I look for- Federal Land Policy and Management Act, Services Act (40 U.S.C. 484); and the Surplus ward to seeing you or your designate(s) to- 43 U.S.C. § 1701, nor are they subject to Property Act of 1944 (50 U.S.C. App. 1622g). morrow. Please contact me at 395–7420 if you NEPA, since NEPA does not apply to Presi- (Page 12, Issue 3) have any questions. The FDIC contact is dential action. Question 4. Can Interior accept Pacific Jack Smith, Deputy General Counsel, at 898– Lumber assets from Treasury/F.D.I.C. with- 3706. out triggering a ‘‘scoring’’ claim? Any budg- DOCUMENT DOI–J etary impact, including ‘‘scoring,’’ is depend- UNITED STATES DEPARTMENT OF THE ent on the particular structure of the trans- DOCUMENT DOI–I INTERIOR, OFFICE OF THE SEC- action and whether particular legislation is UNITED STATES DEPARTMENT OF THE RETARY, necessary to facilitate the acquisition or INTERIOR, OFFICE OF THE SOLIC- Washington, DC, March 26, 1996. transfer of the Headwaters Forest. (Page 14, ITOR, MEMORANDUM Issue 4) Washington, DC, December 1, 1995. Attached for your consideration is the full To: John Garamendi, Deputy Secretary response drafted by F.D.I.C. and full cita- MEMORANDUM Allen McReynolds, Special Assistant to the tions involved in resolving the legal, legisla- To: Bob Baum Secretary tive, and financial obstacles involved. From: Larry Mellinger Subject: Exchange Issues on Headwaters Enclosure. Subject: Headwaters—Alternative Methods Project for DOI Management You recently stated that you have reason In addition to the methods in which the to believe that Charles Hurwitz and Maxxam DOCUMENT DOI–K Headwaters Forest could possibly be trans- Corporation officials will most likely want a LAW OFFICES OF THOMAS N. LIPPE, ferred from the Treasury Department to In- global settlement through the negotiation San Francisco, CA, June 5, 1996. terior, which were outlined in the FDIC process for Headwaters Forest. By that, you To: Robert Baum, Department of Interior

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00167 Fmt 0666 Sfmt 0634 E:\CR\FM\A20DE8.437 pfrm07 PsN: E20PT1 E2506 CONGRESSIONAL RECORD — Extensions of Remarks December 20, 2001 Your Fax No: 202–208–3877 (103rd Congress). This area is composed of: in California, an accomplishment that would From: Thomas N. Lippe (a) approximately 44,000 acres of land, most be historic in scope. Toward this end, Julia CONFIDENTIALITY NOTE of which has been designated as critical habi- will contact John Garamendi’s office to ar- The documents accompanying this cover tat for the marbled murrelet by the U.S. range a meeting with us soon as possible. sheet contain information from the law of- Fish & Wildlife Service and which belongs Thank you for your careful consideration fices of Thomas N. Lippe which may be con- primarily to Pacific Lumber Company (ap- of this. fidential or privileged. The information is in- proximately 33,000 acres) and other compa- Very truly yours, tended to be for the use of the individual or nies (approximately 11,000 acres including THOMAS N. LIPPE. Enclosure. entity named on this transmission sheet. If approximately 6,300 acres of Elk River Tim- you are not the intended recipient. Be aware ber Company land); and (b) a 13,000 acre area cc: Cecelia Lanman, Doug Thron, Jill that any disclosure, copying, distribution or north of the critical habitat area, which is Ratner, Kathy Bailey, Julie Levin use of the contents of this faxed information identified in HR 2866 as a Coho Salmon Study Area. The HFCC is mapping the pre- may be prohibited. If you have received this DOCUMENT DOI–L facsimile in error. Please notify us by tele- cise boundaries of these areas. UNITED STATES DEPARTMENT OF THE phone immediately so we can arrange for the 2. Federal acquisition should not be accom- INTERIOR, OFFICE OF THE DEPUTY return of the original documents to us. panied by any ‘‘sufficiency language’’ relat- SECRETARY, Other: Fax does not include map; Original ing to any timber owner’s compliance with Washington, DC, July 8, 1996. with enclosed map to follow in the mail. environmental laws or restricting judicial Date: June 5, 1996. review of logging elsewhere. MEMORANDUM Case: HD–ACQ. 3. The federal government should seek in- To: Jim Brookshire, Bob Baum terim protection for these areas by (a) in- From: John Garamendi forming Elk River Timber Company that it Subject: Weekend Discussions with Hurwitz LAW OFFICES OF THOMAS N. LIPPE, is considering acquiring Elk River’s land San Francisco, CA, June 5, 1996. and Boggs north of the Headwaters Grove; and (b) in- Friday night I attended Boggs’ barbecue at By Facsimile and By mail: (202) 208–3877 sisting that Pacific Lumber Company cease his home, and talked to him and to Robert L. Baum, logging in the old growth groves within the Maxxam’s Corporation Vice President from Associate Solicitor for Division of Conservation Palco owned areas described above. Washington. I laid out our four demands. & Wildlife, Solicitor’s Office, Department of 4. The federal government should contact They were not responsive, and it was obvious Interior, Washington, DC. and share with the HFCC appraisals of the that they had no instructions to negotiate. DEAR BOB: I am writing on behalf of the following areas: From the discussion, it was clear that Headwaters Forest Coordinating Committee (a) The areas described in (a) and (b) of to follow up on your meeting with Julia Charles Hurwitz had two concerns. The first paragraph 1 above, was that we are not serious and that we are Levin on May 31, 1996. I understand from (b) The 33,000 acre area described in Palco’s just stringing him out. The second is that Julia that you expressed a high degree of dis- federal inverse condemnation complaint, our appraisal will be so far off the mark that appointment and frustration with your (c) All of the old-growth groves that are no deal can be made, and that the properties meeting with the HFCC representatives, in- depicted on the enclosed map as being within that we are putting forth are not good. These cluding myself, in Burlingame on May 15, the critical habitat area. 1996. We are puzzled by this since your char- 5. Federal land acquisition should be ac- concerns seemed to be the reasons that they acterization of our discussions at that meet- companied by forest worker retraining meas- did not want to do the four demands. I finally told them that if they did not be- ing does not reflect many of the most impor- ures. lieve that we were serious, then Charles tant elements of our communications. 6. Federal acquisition should not be accom- Hurwitz should phone me on Saturday. By Therefore, in order to avoid any ambiguity plished by trading other old growth forest the time we returned home, Mr. Hurwitz had or misunderstanding, we are writing now to lands. phoned. We talked later Saturday afternoon. memoralize the most important elements of 7. The HFCC will assist with identifying Mr. Hurwitz confirmed my suspicions as re- what we said at the meeting. surplus federal property that may be suit- The Headwaters Forest Coordinating Com- able for a land swap; but the Department of lated above. He went on and on about the mittee (HFCC) is composed of representa- Interior should share its information on properties not having real value because en- tives of the following organizations: Bay these properties with the HFCC to enable us titlements were not assured. He dismissed Area Coalition for Headwaters Forest to assist. Yerba Buena and Treasure Island as worth- (BACH), Earth First!, Environmental Protec- 8. The HFCC has established a process to less. The same was said about all other prop- tion Information Center (EPIC), Forests For- attempt to reach consensus on how to re- erties that he had heard about. He demanded ever, Mendocino Environmental Center spond to any eventual land acquisition. We to have the appraisal and the list before de- (MEC), Rose Foundation for Communica- believe that it is now premature to attempt ciding what to do about the demands. I said, ‘‘no, we would not negotiate and tions and the Environment, Sierra Club, to define what is feasible or realistic and litigate at the same time.’’ He needed to de- Trees Foundation. that such determinations must depend on The HFCC has in turn selected the five in- the information gained from the appraisals cide which he would do . . . the four demands dividuals you met with (i.e., Cecelia and surplus property surveys described would have to be met, I said. I suggested Lanman, Kathy Bailey, Jill Ratner, Doug above. In addition, the federal government’s that the following steps occur: 1. Charles Hurwitz meets our demands; Thron and myself) to represent the HFCC in reluctance to discuss, either with us or with 2. On receipt of the confirming letters, we discussions with the Administration and in Maxxam, the possible settlement of the FDIC will give him a complete list of properties; and OTS lawsuits (the so-called ‘‘debt for na- any negotiations with Pacific Lumber Com- 3. We will enter into discussions with him ture’’ swap) also makes any meaningful as- pany. on the value of Headwaters with the goal of These organizations have been working for sessment of what is feasible impossible at agreeing to a value; and, many years, through litigation, community this time. 4. We will then determine how to pay the We believe that if the federal government education, government and private acquisi- price with land swaps, etc. tion, etc., to protect the ecology and bio- pursues acquisition with the intent of maxi- He said he’d get back to us on Monday. diversity of the redwood region of California. mizing ecological conservation, limited by Later Saturday evening he called again As a result, the organizations are recognized actual financial and political constraints, and asked to have all of the State of Cali- by the national environmental community and with open communication and sharing of fornia properties at Lake Tahoe put on the as the most knowledgeable about what is re- information with the HFCC (within legal table. I said I’d think about it. quired to achieve meaningful protection for constraints), that the end result of this proc- Sunday, Mr. Boggs phoned and asked me to this dwindling resource. ess will be understood and supported by the think about the wording of a letter he would All of these organizations and their mem- environmental community in California and send me on Monday. Here it is: they would bers very much appreciate the Administra- nationwide. meet the four demands with modifications. I tion’s interest in exploring the possibility of Given these considerations, it is unreal- think the letter will come in like this. federal acquisition of privately owned red- istic for the Administration to expect sup- A stay of the takings case until September wood forests for conservation purposes. Both port, now, for a proposal which may fall far 15, with extensions if mutually agreeable; you and John Garamendi have, quite under- short of what could be accomplished after all An agreement not to log until ‘‘x’’ date; standably, inquired of the HFCC organiza- the facts are in. In addition, the existing Three-party agreement on confidentiality; tions how they would view certain acquisi- murrelet listing and recent designation of and, tion scenarios. The HFCC’s response to this murrelet critical habitat, as well as the No double dealing. query at our May 15, 1996 meeting, which has forthcoming coho listing by your Depart- You are to review the letter and determine apparently caused your current frustration, ment highlight the need to take affirmative if it meets our minimum requirements. If is as follows: steps now to protect these species, which not, then call Mr. Boggs and suggest im- 1. The federal government should explore HFCC’s approach to designed to accomplish. provements. Call me in Alaska to review the acquiring the approximately 57,000 acres of In conclusion, we hope the Administration letter if it meets minimum requirements. private redwood forest land that is roughly will work with us to acquire a significant Do not proceed on showing or discussing equivalent to the area identified in HR 2866 portion of the old growth redwood ecosystem any property deals Mr. Hurwitz or his people.

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00168 Fmt 0666 Sfmt 0634 E:\CR\FM\A20DE8.441 pfrm07 PsN: E20PT1 December 20, 2001 CONGRESSIONAL RECORD — Extensions of Remarks E2507 Do order an appraisal of the Emerson prop- tection for the Headwaters ecosystem. Rath- dating the map may result in modification of erty. I want that piece in place as soon as er we are attempting to make suggestions the information it portrays.) possible. for a feasible starting point. Our priorities TIMBER VOLUME PER ACRE IS HIGHER IN MAIN Good luck to us all. for protection are: GROVE THAN IN THE OTHER VIRGIN GROVES All the virgin old-growth groves within the The question of valuation immediately USFWS-designated murrelet critical habitat DOCUMENT DOI–M comes to mind. Therefore, we asked Dr. Rob- area and their adjacent residual old-growth ert Hrubes, an independent consulting for- QUESTIONS REGARDING HEADWATERS GROVE, groves. ester, to analyze the Pacific Lumber maps to JULY 19, 1996 Within the critical habitat area, the resid- determine whether there was any quantifi- 1. Please provide an area map showing the ual old-growth groves which are ‘‘occupied.’’ able difference between the timber stand property’s location. Describe the Headwaters A buffer on the north of the main grove characteristics in the main grove compared Grove property and its physical sur- consisting of the 3700 acres designated as to the other virgin groves. He concluded that roundings. What other areas surround it that murrelet critical habitat within the Elk there was a very significant difference. Ac- involve Pacific Lumber? River Timber property. cording to Hrubes, the PL maps indicate 2. What is the significance of the marbled A minimum 300 foot buffer around every that the size of the trees is larger and the murrelet and other threatened/endangered occupied grove. density of the canopy is heavier in the main species for the property? What ESA or other Watercourse protection within the 60,000 grove than in the other groves, indicating a potential development limitations from Fed- acre Headwaters Forest and the remainder of likely greater timber volume and value. You eral or State law affect the Grove and sur- the Elk River Timber Company (approxi- will receive his report by August 23. rounding area? What current limitations af- mately 5400 acres) similar to the Standards TIMBER VOLUME AND VALUE IN RESIDUAL fect the property? and Guidelines for Management of Habitant STANDS IS 10–15% OF VIRGIN GROVES 3. Explain the takings lawsuit that for Late-Successional and Old-Growth Forest Maxxam has filed. What are the grounds for Related Species Within the Range of the Pacific Lumber itself has used and pub- the lawsuit? What is the status of the suit? Northern Spotted Owl, published jointly by lished at least two rules of thumb to esti- Is the claim credible? Interior and other departments in April 1994. mate the relative timber volume of residual 4. Provide a history/chronology of the ne- No limitation on the application of the En- stands compared to virgin groves. In its re- gotiations to exchange the Grove from dangered Species Act or other modification cent suit Pacific Lumber v. United States, Maxxam and its predecessors. When and how of current law applicable to the Headwaters on page 16, paragraph 31, line 10–12 the com- did Maxxam become involved? What volume area. pany states: ‘‘About 10 acres of residual old of timber (green or salvage) has been cut We are in the process of producing another growth is required to produce the volume that would be produced from one acre of vir- from the Grove and surrounding area owned map which outlines these areas. Until it is gin old growth.’’ by Pacific Lumber thus far? complete we hope the following information Another estimate of relative value was 5. What are all the elements of the DOI will be useful. provided in Timber Harvest Plan 89–793 Hum, proposed exchange? Does the exchange in- ACREAGE OF OCCUPIED MURRELET NESTING the last THP submitted (never approved) volve the FDIC? IRS? Forest Service? Other GROVES which proposed full scale logging within the agencies? Are tax incentives or FDIC/OTS All the virgin old-growth groves within the main grove. This THP proposed logging 77% claims involved? USFWS-designated murrelet critical habitat of the stand volume in 399 acres of the grove 6. Have formal appraisals on the property area, adjacent residual old-growth groves, to produce 49.5 million feet of logs. In its involved in the exchange been done? What is and other residual old-growth groves which analysis of alternatives, Robert Stevens, the basis for the Maxxam estimates? DOI’s? are ‘‘occupied’’ by marble murrelets: PL’s Head Forester at the time, states on 7. Does DOI contemplate needing legisla- Although we would like to clearly identify page 60: ‘‘If TPL Co. is prevented from log- tion for this deal to occur, or do necessary these habitat categories, the acreage figures ging its virgin timber, it will have no choice authorities exist? If so, list these authorities which Pacific Lumber has provided in its except to replace this old growth timber vol- and how they apply. draft murrelet HCP appear to be unrealisti- ume with trees from previously logged 8. What is the timetable for a transaction? cally low when compared with the timber stands. Producing 49.5 million feet of logs What is the significance of September 15th? type map which it has provided EPIC as part would require 2,500 acres or more to be What legal options are involved for the Fed- of the exemption litigation. According to the logged.’’ The 399 acres of virgin timber from eral Government in terms of protecting the HCP, the company claims: the main grove proposed for logging by THP property (specifically with regards to the 793 is 15% of the 2500 acres minimum which ESA)? Does Maxxam believe it has leverage 4768: Virgin occupied nesting within critical Stevens estimates would provide alternative in this transaction and if so, what are the habitat area (includes main grove) old growth timber for harvest. Thus the com- circumstances that leads it to believe that? 1346: Residual occupied nesting within crit- pany has provided over a seven year period 9. What have been the public positions on ical habitat area two similar estimates of relative value: The a Headwaters exchange by Maxxam, DOI, 6114 acres: Total occupied nesting habitat company believes its residual timber stands State of California, and other national and within critical habitat area. contain between 10 and 15% of the volume of local groups? The PL draft HCP also claims that there a virgin stand. 10. Have the FDIC/DOJ/IRS been involved are 1550 acres of occupied nesting habitat in DOI’s discussions with Maxxam? Have outside the designated critical habitat area. WATERCOURSE PROTECTION FOR FISH AND these agencies been involved in separate dis- During discovery associated with EPIC’s WILDLIFE cussions with Maxxam? federal exemption litigation, Pacific Lumber One of our top priorities is watercourse has provided a map which shows timber protection within the 60,000 acre Headwaters types and stand densities on its property. Forest and the residual portion of the Elk DOCUMENT DOI–N This map shows that there are significant River Timber Company similar to the Stand- SIERRA CLUB CALIFORNIA, areas of residual timber adjacent to the vir- ards and Guidelines for Management of Habi- Philo, CA, August 21, 1996. gin nesting groves. Murrelet surveys in this tat for Late-Successional and Old-Growth Re: Headwaters Forest acreage have not been systematic, although Forest Related Species Within the Range of Assistant Secretary JOHN GARAMENDI, murrelet occupied behavior has been ob- the Northern Spotted Owl, published jointly U.S. Department of the Interior, served in residual stands. by Interior and other departments in April Washington, DC Using PL’s timber type map, we estimate 1994. When reviewing the Standards and DEAR ASSISTANT SECRETARY GARAMENDI: I that there could be as much as 17,113 acres Guidelines it is important to keep in mind am writing you on behalf of the Headwaters occupied by murrelets in the 60,000 Head- that they were designed to provide impor- Forest Coordinating Committee. We thank waters Forest, including the stands where tant habitat for a broad variety of species you for your willingness to continue the ne- surveys have demonstrated occupancy north not limited to fish. gotiations which will lead to protection for of the designated critical habitat area. How- Standards and Guidelines specifies a no cut Headwaters Forset. We appreciate that the ever, this figure does not include the 1550 zone on each side of a fish-bearing (Class I) issue is complex and the potential price tag acres mentioned above that PL has identi- watercourse measured along the ground is large. fied as occupied, which is located south of (slope distance) equal to two site potential To assist you in defining areas which we Headwaters, outside the critical habitat trees or 300 feet, whichever is greater. With- believe to be priorities for protection, the area. Of the 17,113 figure, approximately out reviewing company information, site po- Headwaters Forest Coordinating Committee 14,000 acres fall within the critical habitat tential tree size can only be estimated. I met last week. We all agree that acquisition boundary. It is crucial to keep in mind that have estimated 250 feet per tree, which would or permanent protection at this time for the only about 5000 acres of either figure is vir- yield 500 feet each side. However it is also following areas would constitute a signifi- gin. difficult to estimate ground-slope distance cant step toward protection for Headwaters (An additional uncertainty which we are from a map so I have used the 300 foot stand- Forest, the sixty thousand acre area which is attempting to clarify is whether some of the ard (total 600 feet on both sides of water- our primary concern. By listing these prior- residual groves identified on the timber type course) applied to the (horizontal) map dis- ities we do not intend to imply that these map have already been logged. Although tance. Greater precision will obviously be steps would constitute full and complete pro- their map is dated March 1996 we believe up- needed before finalizing any agreement.

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00169 Fmt 0666 Sfmt 0634 E:\CR\FM\A20DE8.443 pfrm07 PsN: E20PT1 E2508 CONGRESSIONAL RECORD — Extensions of Remarks December 20, 2001 Measuring by hand the watercourses with- our effort to prioritize the need to protect action (filed approximately 4 months after in the 60,000 acre Headwaters Forest as indi- specific habitat features within Headwaters the FDIC action) when the FDIC paid the cated on U.S.G.S. topographical maps has Forest will be helpful in you negotiations OTS to pursue its administrative action in a yielded the estimate that there are 334,950 with Pacific Lumber Company. We remain forum more favorable to the banking regu- linear feet of Class I, blue-line watercourses. willing to provide information to support lators. This is the equivalent of 63.44 miles. I applied your efforts. (5) The FDIC and the OTS repeatedly in- the 600 foot standard to this figure, divided Sincerely, sisted in writing that Charles Hurwitz was by the number of square feet in an acre KATHY BAILEY, the first to raise the issue of a ‘‘global settle- (43,560), and determined that proposed Class I State Forestry Chair, on behalf of the HFCC. ment’’ involving debt-for-nature and red- no-cut watercourse zones would total ap- woods with them. This notion is contrary to proximately 4612 acres: 600′ × 334,950′ = DOCUMENT DOI–O the bulk of evidence presented at the hear- 200,970,000 sq.ft/43,560 = 4612 acres. ing. The record shows that months prior to FOIA REQUEST Although I originally believed that the dis- Mr. Hurwitz broaching the redwoods as part tance of Class II (presence of water-depend- 1. GSA July memo to Hurwitz/notebook. of a settlement involving the banking ent non-fish life) streams could equal as 2. Forest Service maps, memo to Dep. claims, the FDIC secretly plotted to ensure much as four times the distance of Class I Secy. that Mr. Hurwitz was baited into ‘‘first’’ streams (which I reported separately regard- 3. Base Closure. 4. BLM Lands Humboldt, Trinity, raising the issue with the banking regu- ing Elk River Timber Company), additional Mendocis. lators. time spent mapping has led me to conclude 5. GSA printout. (6) The records also show a much broader that twice the distance is a closer estimate, 6. Oil & gas. government-wide effort involving the CEQ, and still likely to be high. Look for memos, etc. in file re: surplus the OMB, the DOI, and the banking regu- The Standards and Guidelines for Class II property. lators to create ‘‘leverage’’ through filing is one site-potential tree or 150 feet no cut banking claims and to use ‘‘leverage’’ of the zone each side of the watercourse. Using the banking claims to obtain redwoods, precisely same logic as outlined above, I have used the APPENDIX 4 as outlined by early 1993 communications 50 foot standard. Applying 50% of the Class I HOUSE OF REPRESENTATIVES, from the eco-terrorist group Earth First! and zone to twice the distance yields the same COMMITTEE ON RESOURCES, other ‘‘environmental’’ interest groups. number. Therefore I believe protection for Washington, DC. (7) The records show three days prior to Class II streams would likely be no more MEMORANDUM AND STAFF REPORT the July 27, 1995, ATS memo, the staff would than an additional 4612 acres. To: Chairman John Doolittle, Members of have used ‘‘ordinary’’ procedures to close out Without close inspection it is impossible to the Headwaters Task Force the case against Mr. Hurwitz regarding feel confident about estimating the distance From: Committee on Resources Staff USAT, but pressure from Members of Con- of Class III (ephemeral) streams. However, I Date: January 5, 2000 gress and environmental special interest still believe that as a working assumption Re: Documents regarding groups were cause enough to bring the mat- we can guesstimate that there are twice as Pursuant to the motion of Chairman Doo- ter of pursuing Mr. Hurwitz for USAT claims many Class III (ephemeral) streams as Class before the FDIC board of directors. That II. The Standards and Guidelines for Class III little at the December 12, 2000, hearing, the attached documents are included in the memo was finalized in draft, but never are one site potential tree or 100 foot no-cut signed or sent. zone each side of watercourse. However, we record of the hearing. The motion was as fol- lows: ‘‘I move that all the documents we uti- (8) The FDIC board of directors discussed have chosen to depart from the Standards the topic of the redwoods and meetings be- and Guidelines in this instance and simply lized in today’s hearing be included in the hearing record and that all of the documents tween FDIC staff and Department of Interior ask for a 50 foot equipment exclusion zone on staff about the debt-for-nature scheme at each side of all Class IIIs with retention of at produced by the Department of the Interior be included as part of today’s hearing record; their board meeting when determining least 50% overstory and understory canopy whether to bring the action against Mr. within that zone. Over the estimated 254 and I furthermore move that any documents not included in the above categories that are Hurwitz. Those subjects were consequently a miles of Class III, an equipment exclusion factor in the board’s determination to pro- zone totaling 3076 acres should be applied. necessary to document a staff report or anal- ysis of the situation be released with such a ceed with the action involving USAT against Class I=4612 ac staff report.’’ Mr. Hurwitz. Class II=4612 ac There was no objection to the motion. The The staff makes the observation records Total=9224 ac no harvest watercourse protec- attached documents (A–X) and certain DOI examined by the task force document the tion zones labeled and unlabeled documents, along with conclusions above. The staff makes the addi- Class III=3076 ac equipment exclusion with all documents produced by the Department tional observation that more material docu- 50% canopy retention of the Interior, are therefore part of the offi- menting these conclusions, including the PRE-EXISTING WATERCOURSE CONSTRAINTS cial record of the Committee on Resources, wider government agenda to obtain the red- MUST BE ANALYZED Task Force on Headwaters Forest and Re- woods owned by Mr. Hurwitz using banking Existing California Board of Forestry regu- lated Issues. Committee records are avail- claims by the FDIC and OTS as leverage, is lations require 50% of the stream canopy to able for public dissemination. Consequently, available in the committee records. be retained for Class I streams and a Water- they, along with the Stenographic Minutes of the hearing (and the official printed tran- course and Lake Protection Zone (WLPZ) HOUSE OF REPRESENTATIVES, script when available) were part of the offi- ranging from 75–150 feet depending on side- COMMITTEE ON RESOURCES, cial Task Force hearing record and were pub- hill slope. Class II zones are smaller. Equip- Washington, DC, December 8, 2000. lically available at the close of the hearing. ment exclusion zones for Class III streams Mr. William F. Kroener, III with or without canopy standards are often The staff reaches the following conclusions regarding the information gathered by the General Counsel, Federal Deposit Insurance specified in current THPs. Protection meas- Corporation, Washington, DC ures are likely to increase when coho salmon Task Force: (1) The record and information produced at DEAR MR. KROENER: Thank you for your are listed this year. December 7, 2002, letter about the December THP 96–059 Hum on the neighboring Elk the hearing (and the attached documents) support the conclusion that the debt-for-na- 12, 2000, hearing of the Task Force on the River Timber property included mitigation Headwaters Forest and Related Issues. You measures beyond standard rule prescriptions ture agenda was a large, if not integral part of the rationale for proceeding with the raise misplaced concerns about the hearing including: retention of approximately 75% of and possible use of records by the Task Force the existing conifer overstory in the Class I FDIC professional liability action against Charles Hurwitz for the USAT failure. in furtherance of very legitimate oversight WLPZ and a 150 foot WLPZ. The value of activities authorized under the U.S. Con- purchasing a riparian corridor should take (2) The debt-for-nature agenda was first ad- vanced through the outside counsel of the stitution and the Rules of the United States existing regulatory constraints and oper- House of Representatives. ational practices into consideration. FDIC (Hopkins & Sutter) which coordinated Please refer to page two of the June 16, Additionally, it will be necessary to con- numerous meetings and other communica- 2000, letter from Chairman Young to Chair- duct an evaluation of the existing harvest- tions for environmental interest groups and man Tanoue, which outlines a parameter of able timber volume in the proposed water- foundations about obtaining redwoods owned the oversight project: the FDIC’s ‘‘advance- course protection zones. A significant pro- by one of Charles Hurwitz’s companies ment of claims against private parties to ul- portion of the proposed no-cut zones will through ‘‘leverage’’ that would be exercised timately obtain additional parcels of the have very little immediately merchantible via a ‘‘high profile’’ lawsuit. Headwaters Forest owned by the Pacific timber remaining. (3) The debt-for-nature agenda to obtain redwoods had nothing to do with legitimate Lumber Company.’’ This issue is not at all CONCLUSION banking rationales for bringing the FDIC (or should not be) part of the underlying We continue to believe that protection for legal action regarding USAT. banking claim of the FDIC (or the OTS). In the full 60,000 acre Headwaters Forest should (4) The FDIC debt-for-nature agenda was fact, the issue of redwoods, debt-for-nature, be achieved as soon as possible. We hope that advanced by the Office of Thrift Supervision and the Headwaters Forest should have no

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place in FDIC, or OTS investigations, pro- FEDERAL DEPOSIT INSURANCE cerning pursuance of claims like those ceedings, claims, court filings, or even inter- CORPORATION, against USAT. nal communication—yet production of such Washington, DC, December 7, 2000. Indeed, a primary thrust of the inquiry material from your agency was massive. HON. JOHN T. DOOLITTLE, (which examines debt-for-nature and Head- waters) should have nothing to do with the The banking laws certainly do not author- Chairman, Task Force on Headwaters Forest and Related Issues, Committee on Re- legitimate pursuit of the administrative pro- ize agendas associated with redwoods, debt- sources, House of Representatives, Wash- ceeding against USAT. Therefore, it is incon- for-nature, or expansion of the Headwaters ington, DC. ceivable that the inquiry could adversely in- Forest. In fact, other Acts of Congress pro- DEAR MR. CHAIRMAN: This letter responds fluence ‘‘due process and fairness’’ for the re- hibit any expenditure whatsoever related to to your recent letters and subpoena to Chair- spondent (USAT or any of its prior owners), acquiring lands or interests in lands from man Tanoue for her appearance and testi- the concern you expressed. Pacific Lumber’s land base to enlarge the mony before a meeting of the Task Force, It was explained by Chairman Young in the Headwaters Forest redwood grove. The letter previously scheduled for November 13, 2000, letter to the Director initiating the over- also explains the authority to conduct this which is now scheduled for December 12, 2000. sight review that Congress acting through oversight project, and it explains the back- According to your letter of November 8, 2000, the Committee on Resources (and now ground of this issue so that it is very clear to the hearing will relate to the FDIC’s pending through a duly authorized Task Force), has everyone. Indeed, it is a duty of Congres- litigation against Charles E. Hurwitz arising the authority to conduct the inquiry. The sional committees to ‘‘review and study on a out of the 1988 failure of United Savings As- House Ethics Manual to which you refer ac- continuing basis the application, administra- sociation of Texas (USAT). knowledges the plenary authority of Con- tion, and effectiveness of laws * * *’’ and The FDIC has produced a large number of gress and its Committees to conduct this ‘‘any conditions or circumstances that may documents to the House Committee on Re- oversight review concerning the Headwaters. indicate the necessity or desirability of en- sources in response to its previous request The ethics manual states: ‘‘No other statute acting new or additional legislation.* * *’’ and the subpoena duces tecum issued on or rule restrains Members of Congress from (House Rule X 2.(b)) June 30, 2000. As we previously informed communicating with agency decision-mak- This is precisely what the Task Force will Chairman Young, our prior productions in- ers.’’ The ultimate form of communication do. The June 16, 2000, letter to Chairman clude sensitive, highly confidential material in a formal sense will be at the hearing that Tanoue from Chairman Young makes this that is covered by attorney client and/or at- we have scheduled. clear and cites the applicable provisions of torney work product privileges in the ongo- Therefore, Director Seidman’s attendance law and rules that define our oversight. Your ing litigation against Mr. Hurwitz, including is required at the hearing. You and appro- agency was informed six months ago about documents that Mr. Hurwitz and his rep- priate staff should be available to assist her the thrust of the oversight project. resentatives are not entitled to review with answers to Task Force Questions that through the court proceedings. We have iden- she may not have the detailed knowledge Merely because ongoing litigation ‘‘re- tified the documents containing confidential and background to answer. While the Direc- lates’’ to a matter under review by a Task information with a stamp bearing the des- tor may not have been involved with the fil- Force is not legal justification that fore- ignation ‘‘CONFIDENTIAL.’’ ing of the OTS charges because she came to closes Congress’ ability to determine and Among the documents provided to the the agency subsequently , she still has ulti- test facts by using records in a Congressional Committee is the FDIC’s Authority To Sue mate responsibility for OTS actions, so I ex- review or hearing. It will certainly be no ex- memorandum, which remains under a court pect your staff to be available to assist here cuse for failing to answer questions at our seal, pursuant to two orders of the United in providing needed information to the Task hearing. Often Congressional Committees States Court of Appeals for the Fifth Circuit. Force. Thank you. hear that notion when records are embar- Because of these two court orders, the FDIC, Sincerely, rassing to a Federal agency for one reason or as a party to the litigation, could be subject JOHN T. DOOLITTLE, another, rather than when records are sub- to contempt of court by discussing the spe- Chairman. ject to a valid claim of privilege in a court. cific contents of the authority to sue memo publicly. Therefore, the FDIC will not be If litigation or potential litigation were a OFFICE OF THRIFT SUPERVISION, able to answer specific questions about the bar to Congressional oversight, Congress DEPARTMENT OF THE TREASURY, conclusions and recommendations contained would rarely be able to conduct any over- Washington, DC, December 6, 2000. in the sealed document itself. However, we sight. You must also be aware that because Hon. JOHN T. DOOLITTLE, believe we can assist the Task Force to ful- records are compelled to be produced to a Chairman, Task Force on Headwaters Forest fill its oversight responsibilities and respond Committee, means that an otherwise legiti- and Related Issues, Committee on Re- to any questions about the decision to bring mate privilege that shields them from dis- sources, House of Representatives, Wash- the case without referring to the sealed doc- covery in a court of law is not automatically ington, DC. ument by discussing the unredacted portions lost. Your concern, therefore, about possible DEAR CHAIRMAN DOOLITTLE: This responds of the Board’s deliberations, the underlying disclosure of ‘‘sensitive’’ or ‘‘confidential’’ to your December 5, 2000, letter to Director facts, the case law and the agency’s stand- records related to ongoing litigation is over- Ellen Seidman, which references your No- ards for bringing suit. stated, especially in light of the tangential vember 6, 2000, letter and the November 4, Please do not hesitate to contact me if you nature of the primary subject of our over- 2000, subpoena for her appearance and testi- have any further questions. sight to the underlying banking claims mony before a meeting of the Task Force, Sincerely, brought by the FDIC (and OTS). The Con- acting on behalf of the Committee on Re- WILLIAM F. KROENER, III, stitutionally authorized oversight functions sources. General Counsel. of Congress to collect information for over- As I stated in my June 23, 2000, and August sight make your concern even less valid. 24, 2000, letters to Chairman Young of the Furthermore, with respect to the ATS HOUSE OF REPRESENTATIVES, Committee on Resources (copies enclosed), memorandum to which you refer, it has been COMMITTEE ON RESOURCES, the Office of Thrift Supervision (OTS) has publically available for months on the Hous- Washington, DC, December 7, 2000. substantial concerns that the Task Force’s ton Chronicle web site (http://www.chron.com/ CAROLYN J. BUCK, inquiry could compromise the pending adju- dicatory proceeding brought by the agency, content/chronicle/special/hurwitzdocs/), so it is Chief Counsel, Office of Thrift Supervision, De- pursuant to 12 U.S.C. § 1818, against Mr. a stretch to think that your Chairman would partment of the Treasury, Washington, DC. DEAR MS. BUCK: Thank you for your De- Charles Hurwitz and Maxxam Corporation be held in contempt of court for being com- cember 6, 2000, letter requesting that you be concerning their involvement with the pelled to discuss the contents of such a docu- substituted as a witness for Director former United Savings Association of Texas ment at a Congressional hearing. This is par- Seidman at the hearing regarding debt-for- (USAT). This proceeding is now in the post- ticularly true given the fact that the record nature and the Headwaters Forest scheduled trial stage before an administrative law was independently subpoenaed and produced for December 12, 2000. judge (ALJ), who will submit a recommended to the Committee outside of the court pro- I understand Ms. Seidman’s role in the ad- decision to Director Seidman. After a further ceedings, and your Chairman is compelled by ministrative proceeding (In the Matter of opportunity for the parties to submit briefs, subpoena to testify at the hearing. While an- United Savings Association of Texas et al., OTS Director Seidman will issue the final deci- swers to specific questions may prove to be Order No. AP 95–40 (December 26, 1995)). I un- sion in the case. very embarrassing to the FDIC and OTS, derstand the sensitivity you expressed re- The subpoena to Director Seidman, which Chairman Tanoue will be expected to answer lated to the Director’s participation in our calls for her to testify concerning such mat- questions concerning that record and other hearing; however, Ms. Seidman has other re- ters as the reasons why the OTS brought the records should such questions be asked. sponsibilities as the Director of the OTS. She administrative action, and OTS’s objectives I hope that this clears up the concerns that is responsible for the matters including con- in the litigation, has the real potential of you raised. Thank you for your attention to duct of employees in the OTS, the office’s interfering with her ability to decide the this matter. interface with the FDIC on the Headwaters case on the basis of the record presented at Sincerely, matter (the FDIC has paid the OTS to pursue trial to the ALJ. In so doing, the actions of JOHN T. DOOLITTLE. the claims), and the general policies con- the Committee and the Task Force may be

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00171 Fmt 0666 Sfmt 0634 E:\CR\FM\A20DE8.450 pfrm07 PsN: E20PT1 E2510 CONGRESSIONAL RECORD — Extensions of Remarks December 20, 2001 later viewed as having deprived the parties amount and source of Federal grants or con- ticable include with his or her written testi- to the administrative proceeding of due proc- tracts received with the current or prior two mony a current resume summarizing edu- ess and fairness and could result in the final fiscal years. If the witness represents an or- cation, experience and affiliations pertinent administrative determination in this pro- ganization, he or she must provide the same to the subject matter of the hearing. In addi- ceeding being nullified by a court of law. See, information with regard to the organization. tion, to the extent practicable, each non- e.g., Pillsbury Co. v. FTC, 354 F.2d 952, 963–64 The information disclosed must be relevant governmental witness must disclose the (5th Cir. 1966); Koniag, Inc. v. Andrus, 580 F.2d to the subject matter of the hearing and the amount and source of Federal grants or con- 601, 610 (D.C. Cir.), cert. denied, 439 U.S. 1052 witnesses representational capacity at the tracts received with the current or prior two (1978); cf., The Ethics Manual of the House of hearing. Witnesses are not required to dis- fiscal years. If the witness represent an orga- Representatives, pages 244–45. close federal entitlement payments such as nization, he or she must provide the same in- Apart from legal concerns, we note that social security, medicare, or other income formation with regard to the organization. Director Seidman was not involved in the support payments (such as crop or com- The information disclosed must be relevant agency’s filing of the charges in the case modity support payments). In order to assist to the subject matter of the hearing and wit- (which occurred two years before her ap- in meeting the requirement of the rule, we nesses representational capacity at the hear- pointment). To maintain her impartiality as have attached a form which you may com- ing. Witnesses are not required to disclose final decision-maker, she has not been in- plete to aid in complying with this rule. volved in reviewing or presenting the evi- Should you wish to fulfill the disclosure re- federal entitlement payments such as social dence in the case, and has not participated in quirement by submitting the information in security, medicare, or other income support settlement discussions. Therefore, it would some other form or format, you may do so. payments (such as crop or commodity sup- be unlikely that she would have any infor- In order to fully prepare for this hearing, port payments). In order to assist in meeting mation relevant to the Task Force’s inquiry 25 copies of your testimony along with your the requirement of the rule, we have at- regarding the debt for nature campaign con- disclosure should be submitted to Debbie tached a form which you may complete to cerning the Headwaters Forest referred to in Callis, Deputy Chief Clerk, Committee on aid in complying with this rule. Should you your December 5, 2000, letter. Resources, Room 1328 Longworth House Of- wish to fulfill the disclosure requirement by To avoid compromising the Director’s role fice Building, no later than 48 hours prior to submitting the information in some other as adjudicator, OTS proposes to substitute the date of the scheduled hearing. In addition, form or format, you may do so. my appearance and testimony as the Chief consistent with the Americans with Disabil- In order to fully prepare for this hearing, Counsel for the agency. While we continue to ities Act, if your staff requires any reason- 25 copies of your testimony along with your believe that the inquiry creates the potential able accommodations for a disability to fa- disclosure should be submitted to Debbie for interfering with the administrative pro- cilitate your appearance, please contact the Callis, Deputy Chief Clerk, Committee on ceeding, and should be postponed until after Clerk mentioned above. Should you or your Resources, Room 1328 Longworth House Of- the Director issues a final decision in the staff have any questions or need further in- fice Building, no later than 48 hours prior to case, the substitution of witnesses will less- formation regarding the substance of the the date of the scheduled hearing. In addition, en the potential for serious harm. hearing, please contact Duane Gibson, Gen- consistent with the Americans with Disabil- Sincerely, eral Counsel, Oversight and Investigations ities Act, if your staff requires any reason- CAROLYN J. BUCK, on (202) 225–1064. able accommodations for a disability to fa- Chief Counsel. Sincerely, cilitate your appearance, please contact the Enclosures. JOHN T. DOOLITTLE, Clerk mentioned above. Should you or your Chairman, Task Force staff have any questions or need further in- HOUSE OF REPRESENTATIVES, on Headwaters For- est and Related formation regarding the substance of the COMMITTEE ON RESOURCES, hearing, please contact Duane Gibson, Gen- Washington, DC, November 8, 2000. Issues. Attachments. eral Counsel, Oversight and Investigations MR. BILL ISAAC, on (202) 225–1064. Sarasota, FL. Sincerely, DEAR MR. ISAAC: The Committee on Re- HOUSE OF REPRESENTATIVES, JOHN T. DOOLITTLE, sources, Task Force on Headwaters Forest COMMITTEE ON RESOURCES, Chairman, Task Force and Related Issues, will hold an oversight Washington, DC, November 8, 2000. on Headwaters For- hearing on the subjects listed in my Novem- HON. DONNA A. TANOUE, est and Related ber 6, 2000, letter to you. The time and date Chairman, Federal Deposit Insurance Corpora- Issues. of the hearing will be announced later, so tion, Washington, DC your appearance pursuant to the subpoena DEAR MS. TANOUE: The Committee on Re- Attachments. that was issued for your testimony on Mon- sources, Task Force on Headwaters Forest day, November 13, 2000, will be delayed until and Related Issues, will hold an oversight the time set for the re-scheduled hearing. So hearing on the subjects listed in my Novem- HOUSE OF REPRESENTATIVES, that you may properly prepare for that hear- ber 6, 2000, letter to you. The time and date COMMITTEE ON RESOURCES, ing, I offer you the following information. of the hearing will be announced later, so Washington, DC, November 8, 2000. This hearing will focus on your agency’s your appearance pursuant to the subpoena Hon. ELLEN SEIDMAN, role and involvement in the debt for nature that was issued for your testimony on Mon- Director, Office of Thrift Supervision, Wash- campaign concerning the Headwaters Forest. day, November 13, 2000, will be delayed until ington, DC. Any comments you might have with respect the time set for the re-scheduled hearing. So DEAR MS. SEIDMAN: The Committee on Re- to this subject would be appreciated, as that you properly prepare for that hearing, I sources, Task Force on Headwaters Forest would your written testimony. It is my un- offer you the following information. and Related Issues, will hold an oversight derstanding that your organization has expe- This hearing will focus on your agency’s hearing on the subjects listed in my Novem- rience with this subject matter and has in- role and involvement in the debt for nature ber 6, 2000, letter to you. The time and date formation that would be most helpful to the campaign concerning the Headwaters Forest. Committee. Any comments you might have with respect of the hearing will be announced later, so Your oral testimony should not exceed five to this subject would be appreciated, as your appearance pursuant to the subpoena minutes and should summarize your written would your written testimony. It is my un- that was issued for your testimony on Mon- remarks. You may introduce into the record derstanding that your organization has expe- day, November 13, 2000, will be delayed until any other supporting documentation you rience with this subject matter and has in- the time set for the re-scheduled hearing. So wish to present in accordance with the at- formation that would be most helpful to the that you may properly prepare for that hear- tached guidelines. You should bring appro- Committee. ing, I offer you the following information. priate staff with knowledge of the subject Your oral testimony should not exceed five This hearing will focus on your agency’s matter of the hearing who can assist you minutes and should summarize your written role and involvement in the debt for nature with answers required by the Task Force. I remarks. You may introduce into the record campaign concerning the Headwaters Forest. reserve the right to place any witness under any other supporting documentation you Any comments you might have with respect oath. If you are sworn in, you may be accom- wish to present in accordance with the at- to this subject would be appreciated, as panied by counsel to advise on the witness’ tached guidelines. You should bring appro- would your written testimony. It is my un- rights under the Fifth Amendment to the priate staff with knowledge of the subject derstanding that your organization has expe- Constitution. matter of the hearing who can assist you rience with this subject matter and has in- The Rules of the Committee on Resources with answers required by the Task Force. I and of the U.S. House of Representatives re- formation that would be most helpful to the reserve the right to place any witness under Committee. quire that all witnesses appearing before the oath. If you are sworn in, you may be accom- committee must to the greatest extent prac- panied by counsel to advise on the witness’ Your oral testimony should not exceed five ticable include with his or her written testi- rights under the Fifth Amendment to the minutes and should summarize your written mony a current resume summarizing edu- Constitution. remarks. You may introduce into the record cation, experience and affiliations pertinent The Rules of the Committee on Resources any other supporting documentation you to the subject matter of the hearing. In addi- and of the U.S. House of Representatives re- wish to present in accordance with the at- tion, to the extent practicable, each non- quire that all witnesses appearing before the tached guidelines. You should bring appro- governmental witness must disclose the committee must to the greatest extent prac- priate staff with knowledge of the subject

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00172 Fmt 0666 Sfmt 0634 E:\CR\FM\A20DE8.453 pfrm07 PsN: E20PT1 December 20, 2001 CONGRESSIONAL RECORD — Extensions of Remarks E2511 matter of the hearing who can assist you and XI of the Rules of the House of Rep- We very much appreciate your cooperation with answers required by the Task Force. I resentatives, and Rule 6(a) of the Rules of with this inquiry and the production of reserve the right to place any witness under the Committee on Resources. A copy of the records to date. The matters under review oath. If you are sworn in, you may be accom- rules is enclosed. Note Rule 4(f) regarding are very important, and your assistance may panied by counsel to advise on the witness’ the swearing of witnesses, which is my pol- prove to be indispensable. Should you have rights under the Fifth Amendment to the icy for hearings. Therefore, you may bring a any questions about your appearance and Constitution. counsel to advise you of any constitutional testimony, please contact Mr. Duane Gibson, The Rules of the Committee on Resources rights if you desire. General Counsel, Oversight and Investiga- and of the U.S. House of Representatives re- Because of your agency’s role in the mat- tions, at 202–225–1064. quire that all witnesses appearing before the ter, you may possess information that will Sincerely, committee must to the greatest extent prac- be helpful in the deliberations of the Task JOHN T. DOOLITTLE, ticable include with his or her written testi- Force and the Committee. Therefore, you Chairman, Task Force mony a current resume summarizing edu- will be receiving a subpoena for your appear- on Headwaters For- cation, experience and affiliations pertinent ance and testimony before a meeting of the est and Related to the subject matter of the hearing. In addi- Task Force. The subpoena schedules your ap- Issues. tion, to the extent practicable, each non- pearance for November 13, 2000, at 10:00 AM. governmental witness must disclose the The nature of this subpoena is continuing, so amount and source of Federal grants or con- the date and time may change after final SUBPOENA DUCES TECUM (HEARING) schedules for the post-election session of the tracts received with the current or prior two BY AUTHORITY OF THE HOUSE OF REPRESENTA- House are known. Committee staff will in- fiscal years. If the witness represents an or- TIVES OF THE CONGRESS OF THE UNITED form you in advance should scheduling ganization, he or she must provide the same STATES OF AMERICA changes be necessary. information with regard to the organization. We very much appreciate your cooperation To The Honorable Ellen Seidman, Director, The information disclosed must be relevant with this inquiry and the production of Office of Thrift Supervision to the subject matter of the hearing and the records to date. The matters under review You are hereby commanded to be and ap- witnesses representational capacity at the are very important, and your assistance may pear before the Committee on Resources, hearing. Witnesses are not required to dis- prove to be indispensable. Should you have Task Force on the Headwaters Forest and close federal entitlement payments such as any questions about your appearance and Related Issues of the House of Representa- social security, medicare, or other income testimony, please contact Mr. Duane Gibson, tives of the United States, of which the Hon. support payments (such as crop or com- General Counsel, Oversight and Investiga- John Doolittle is chairman, in Room 1324 of modity support payments). In order to as- tions, at 202–225–1064. the Longworth Building, in the city of Wash- sists in meeting the requirement of the rule, Sincerely, ington, on November 13, 2000, at the hour of we have attached a form which you may JOHN T. DOOLITTLE, 10:00 AM, then and there to produce the complete to aid in complying with this rule. Chairman, Task Force things identified on the attached schedule Should you wish to fulfill the disclosure re- on Headwaters For- and to testify touching matters of inquiry quirement by submitting the information in est and Related committed to said Committee; and you are some other form or format, you may do so. Issues. not to depart without leave of said Com- In order to fully prepare for this hearing, mittee. 25 copies of your testimony along with your HOUSE OF REPRESENTATIVES, To authorized staff of the Committee on disclosure should be submitted to Debbie COMMITTEE ON RESOURCES, Resources or the U.S. Marshals Service to Callis, Deputy Chief Clerk, Committee on Washington, DC, November 6, 2000. serve and make return. Resources, Room 1328 Longworth House Of- Hon. ELLEN SEIDMAN, Witness my hand and the seal of the House fice Building, no later than 48 hours prior to Director, Office of Thrift Supervision, Wash- of Representatives of the United States, at the date of the scheduled hearing. In addition, ington, DC. the city of Washington, this 4th day of No- consistent with the Americans with Disabil- DEAR MS. SEIDMAN: The House Committee vember, 2000. ities Act, if your staff requires any reason- on Resources, acting through the Task Force DON YOUNG, Chairman. able accommodations for a disability to fa- on the Headwaters Forest and Related Attest: Jeff Trandahl, Clerk. cilitate your appearance, please contact the Issues, is pursuing an inquiry into matters Clerk mentioned above. Should you or your related to the Headwaters Forest (which is SCHEDULE OF RECORDS staff have any questions or need further in- managed by the Bureau of Land Management All records not priorly produced pursuant formation regarding the substance of the and was purchased pursuant to Title V of to the subpoena and Schedule of Records hearing, please contact Duane Gibson, Gen- P.L. 105–83). Those matters include (1) the dated 30 June 2000 issued to you by Chairman eral Counsel, Oversight and Investigations Federal Deposit Insurance Corporation’s Don Young. on (202) 225–1064. (FDIC) and the Office of Thrift Supervision’s All records created in response to this sub- Sincerely, (OTS) advancement of claims against private poena and the subpoena dated 30 June 2000 JOHN T. DOOLITTLE, parties to ultimately obtain additional par- issued to you by Chairman Don Young. Chairman, Task Force cels of land near or adjacent to the Head- on Headwaters For- waters Forest owned by the Pacific Lumber HOUSE OF REPRESENTATIVES, est and Related Company; (2) the potential impact of ad- COMMITTEE ON RESOURCES, Issues. vancement of such claims to expand the Headwaters Forest; and (3) the matters out- Washington, DC, November 6, 2000. lined in a June 16, 2000, letter initiating an Hon. DONNA A. TANOUE, HOUSE OF REPRESENTATIVES, oversight review concerning the Headwaters Chairman, Federal Deposit Insurance Corpora- COMMITTEE ON RESOURCES, Forest. The subject matter of the inquiry tion, Washington, DC Washington, DC, November 6, 2000. falls under the jurisdiction of this Com- DEAR MS. TANOUE: The House Committee Mr. BILL ISAAC, mittee pursuant to Articles I and IV of the on Resources, acting through the Task Force Sarasota, FL. U.S. Constitution, Rules X and XI of the on the Headwaters Forest and Related DEAR MR. ISAAC: The House Committee on Rules of the House of Representatives, and Issues, is pursuing an inquiry into matters Resources, acting through the Task Force on Rule 6(a) of the Rules of the Committee on related to the Headwaters Forest (which is the Headwaters Forest and Related Issues, is Resources. A copy of the rules is enclosed. managed by the Bureau of Land Management pursuing an inquiry into matters related to Note Rule 49f) regarding the swearing of wit- and was purchased pursuant to Title V of the Headwaters Forest (which is managed by nesses, which is my policy for hearings. P.L. 105–83). Those matters include (1) the the Bureau of Land Management and was Therefore, you may bring a counsel to advise Federal Deposit Insurance Corporation’s purchased pursuant to Title V of P.L. 105–83). you of any constitutional rights if you de- (FDIC) and the Office of Thrift Supervision’s Those matters include (1) the Federal De- sire. (OTS) advancement of claims against private posit Insurance Corporation’s (FDIC) and the Because of your agency’s role in the mat- parties to ultimately obtain additional par- Office of Thrift Supervision’s (OTS) advance- ter, you may possess information that will cels of land near or adjacent to the Head- ment of claims against private parties to ul- be helpful in the deliberations of the Task waters Forest owned by the Pacific Lumber timately obtain additional parcels of land Force and the Committee. Therefore, you Company; (2) the potential impact of ad- near or adjacent to the Headwaters Forest will be receiving a subpoena for your appear- vancement of such claims to expand the owned by the Pacific Lumber Company; (2) ance and the testimony before a meeting of Headwaters Forest; and (3) the matters out- the potential impact of advancement of such the Task Force. The subpoena schedules lined in a June 16, 2000, letter initiating an claims to expand the Headwaters Forest; and your appearance for November 13, 2000, at oversight review concerning the Headwaters (3) the matters outlined in a June 16, 2000, 10:00 AM. The nature of this subpoena is con- Forest. The subject matter of the inquiry letter initiating an oversight review con- tinuing, so the date and time may change falls under the jurisdiction of this Com- cerning the Headwaters Forest. The subject after final schedules for the post-election mittee pursuant to Articles I and IV of the mater of the inquiry falls under the jurisdic- session of the House are known. Committee U.S. Constitution, Rules X and XI of the tion of this Committee pursuant to Articles staff will inform you in advance should Rules of the House of Representatives, and I and IV of the U.S. Constitution, Rules X scheduling changes be necessary. Rule 6(a) of the Rules of the Committee on

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Resources. A copy of the rules is enclosed. P.L. 105–83). Those matters include (1) the OFFICE OF THRIFT SUPERVISION, Note Rule 4(f) regarding the swearing of wit- Federal Deposit Insurance Corporation’s DEPARTMENT OF THE TREASURY, nesses, which is my policy for hearings. (FDIC) and the Office of Thrift Supervision’s Washington, DC, October 6, 2000. Therefore, you may bring a counsel to advise (OTS) advancement of claims against private DUANE GIBSON, you of any constitutional rights if you de- parties to ultimately obtain additional par- General Counsel, Oversight and Investigation, sire. cels of land near or adjacent to the Head- Committee on Resources, House of Rep- Because of your agency’s role in the mat- waters Forest owned by the Pacific Lumber resentatives, Washington, DC. ter, you may possess information that will Company; (2) the potential impact of ad- DEAR MR. GIBSON: Set forth below are the be helpful in the deliberations of the Task vancement of such claims to expand the OTS’s responses to the questions contained Force and the Committee. Therefore, you Headwaters Forest; and (3) the matters out- in your letter to me dated October 3, 2000. will be receiving a subpoena for your appear- lined in a June 16, 2000, letter initiating an 1. Question: ‘‘Did Mr. Hurwitz, Maxxam, ance and testimony before a meeting of the oversight review concerning the Headwaters Pacific Lumber Company or any representa- Task Force. The subpoena schedules your ap- Forest. The subject matter of the inquiry tive of this individual or these companies pearance for November 13, 2000, at 10:00 AM. falls under the jurisdiction of this Com- ever raise with OTS or any of its representa- The nature of this subpoena is continuing, so mittee pursuant to Articles I and IV of the tives the notion of a debt-for-nature swap re- the date and time may change after final U.S. Constitution, Rules X and XI of the lated to Headwaters?’’ schedules for the post-election session of the Rules of the House of Representatives, and OTS Response: Yes. Question: ‘‘On what date did Mr. Hurwitz, House are known. Committee staff will in- Rule 6(a) of the Rules of the Committee on Resources. A copy of the rules is enclosed. Maxxam, Pacific Lumber Company or any form you in advance scheduling should Note Rule 4(f) regarding the swearing of wit- representative of this individual or these en- changes be necessary. nesses, which is my policy for hearings. tities first raise the debt-for-nature [swap] We very much appreciate your cooperation Therefore, you may bring a counsel to advise related to Headwaters? When was the subject with this inquiry and the production of you of any constitutional rights if you de- subsequently raised?’’ records to date. The matters under review sire. OTS Response: According to our records, are very important, and your assistance may Because of your agency’s role in the mat- the first debt-for-nature proposal made by prove to be indispensable. Should you have ter, you may possess information that will Mr. Hurwitz’s representatives to the OTS any questions about your appearance and be helpful in the deliberations of the Task was on August 13, 1996. See OTS Doc. 00546 testimony, please contact Mr. Duane Gibson, Force and the Committee. Therefore, you (notes of OTS Deputy Chief Counsel for En- General Counsel, Oversight and Investiga- will be receiving a subpoena for your appear- forcement Richard Stearns, dated August 13, tions, at 202–225–1064. ance and testimony before a meeting of the 1996, of a telephone conversation with Mr. Sincerely, Task Force. The subpoena schedules your ap- Tommy Boggs). Our records reflect the sub- JOHN T. DOOLITTLE, pearance for November 13, 2000, at 10:00 AM. ject was subsequently raised by representa- Chairman, Task Force on Headwaters Forest The nature of this subpoena is continuing, so tives for Mr. Hurwitz and MAXXAM on the and Related Issues. the date and time may change after final following dates: schedules of the post-election session of the September 6, 1996, OTS Doc. 00547–49 (letter SUBPOENA DUCES TECUM (HEARING) House are known. Committee staff will in- from Mr. John Douglas, counsel for Mr. form you in advance should scheduling Hurwitz, to Richard Stearns and FDIC Dep- BY AUTHORITY OF THE HOUSE OF REPRESENTA- changes be necessary. uty General Counsel Jack Smith, dated Sep- TIVES OF THE CONGRESS OF THE UNITED We very much appreciate your cooperation tember 6, 1996). STATES OF AMERICA with this inquiry and the production of September 10, 1996, OTS Doc. 00550–51 To the Honorable Donna Tanoue, Chairman, records to date. The matters under review (meeting notes prepared by Richard Stearns, FDIC are very important, and your assistance may dated September 10, 1996). You are hereby commanded to be and ap- prove to be indispensable. Should you have September 24, 1996, OTS 00556–60 (hand- pear before the Committee on Resources, any questions about your appearance and written notes taken by OTS Associate Chief Task Force on the Headwaters Forest and testimony, please contact Mr. Duane Gibson, Counsel Bruce Rinaldi of a meeting held on Related Issues of the House of Representa- General Counsel, Oversight and Investiga- September 24, 1996), and OTS Doc. 00561–63 tives of the United States, of which the Hon. tions, at 202–225–1064. (typewritten notes of the same meeting pre- John Doolittle is chairman, in Room 1324 of Sincerely, pared by Mr. Rinaldi on the following day). the Longworth Building, in the city of Wash- JOHN T. DOOLITTLE, August 27, 1997, OTS Doc. 00567–68 (type- ington, on November 13, 2000, at the hour of Chairman, Task Force on written notes prepared by Mr. Rinaldi of 10:00 AM, then and there to produce the Headwaters Forest and Related Issues. telephone conversations with Richard things identified on the attached schedule Keeton and J.C. Nickens, attorneys for Mr. and to testify touching matters of inquiry Hurwitz and MAXXAM, August 27, 1997). SUBPOENA DUCES TECUM (HEARING) February 17, 1998, OTS Doc. 00899–904 (Let- committed to said Committee; and you are BY AUTHORITY OF THE HOUSE OF REPRESENTA- ter from MAXXAM Senior Vice President not to depart without leave of said Com- TIVES OF THE CONGRESS OF THE UNITED and Chief Legal Officer Byron L. Wade to mittee. STATES OF AMERICA FDIC and OTS, dated February 17, 1998, with To authorized staff of the Committee on To The Hon Donna Tanoue, Chairman, FDIC attached draft Memorandum of Agreement); Resources or the U.S. Marshals Service to You are hereby commanded to be and ap- and serve and make return. pear before the Committee on Resources, October 27, 1998, OTS Doc. 00906–11 (type- Witness my hand and the seal of the House Task Force on the Headwaters Forest and written notes of settlement discussion be- of Representatives of the United States, at Related Issues of the House of Representa- tween OTS and counsel for Mr. Hurwitz and the city of Washington, this 4th day of No- tives of the United States, of which the Hon. MAXXAM, prepared by Mr. Rinaldi, October vember 2000. John Doolittle is chairman, in Room 1324 of 27, 1998). DON YOUNG, Chairman. the Longworth Building, in the city of Wash- Although the first time Mr. Hurwitz’s rep- Attest: Jeff Trandahl, Clerk. ington, on November 13, 2000, at the hour of resentatives raised a proposed debt-for-na- SCHEDULE OF RECORDS 10:00 AM, then and there to produce the ture settlement of the OTS’s potential All records not priorly produced pursuant things identified on the attached schedule claims with the OTS was in August 1996, see to the subpoena and Schedule of Records and to testify touching matters of inquiry above, the OTS was informed in July 1995 by dated 30 June 2000 issued to you by Chairman committed to said Committee; and you are the FDIC that Mr. Hurwitz, MAXXAM, and Don Young. not to depart without leave of said Com- Pacific Lumber Company, and the United All records created in response to this sub- mittee. States Department of the Interior, for the poena and the subpoena dated 30 June 2000 To authorized staff of the Committee on sale of a portion of the Headwaters Forest to issued to you by Chairman Don Young. Resources or the U.S. Marshals Service to the federal government. See OTS Doc. 00929– serve and make return. 33 (handwritten notes of a meeting between Witness my hand and the seal of the House OTS and FDIC representatives, July 26, 1995). HOUSE OF REPRESENTATIVES, of Representatives of the United States, at 3. Question: ‘‘Who first raised the subject of COMMITTEE ON RESOURCES, the city of Washington, this 4th day of No- [a] a debt-for-nature [swap] related to Head- Washington, DC, November 6, 2000. vember, 2000. waters raised?’’ Hon. DONNA A. TANOUE, DON YOUNG, Chairman. OTS Response: The first time a representa- Chairman, Federal Deposit Insurance Corpora- Attest: Jeff Trandahl, Clerk. tive of Mr. Hurwitz raised a debt-for-nature tion, Washington, DC. SCHEDULE OF RECORDS swap with OTS was when Mr. Tommy Boggs, DEAR MS. TANOUE: The House Committee All records not priorly produced pursuant a Washington lobbyist and attorney who rep- on Resources, acting through the Task Force to the subpoena and Schedule of Records resented Mr. Hurwitz and MAXXAM, raised a on the Headwaters Forest and Related dated 30 June 2000 issued to you by Chairman debt-for-nature settlement of OTS’s poten- Issues, is pursuing an inquiry into matters Don Young. tial claims with Richard Stearns, OTS Dep- related to the Headwaters Forest (which is All records created in response to this sub- uty Chief Counsel for Enforcement. managed by the Bureau of Land Management poena and the subpoena dated 30 June 2000 4. Question: ‘‘What was the context in and was purchased pursuant to Title V of issued to you by Chairman Don Young. which it was raised? In what medium was it

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00174 Fmt 0666 Sfmt 0634 E:\CR\FM\A20DE8.459 pfrm07 PsN: E20PT1 December 20, 2001 CONGRESSIONAL RECORD — Extensions of Remarks E2513 first raised (e.g., in writing, by phone, in per- then General Counsel of Maxxam, made a has been no further discussion of the debt- son)?’’ number of calls over several months to FDIC for-nature option between the parties. OTS Response: The context in which Mr. Counsel Jeffrey Williams attempting to per- 3. Question: Who first raised the subject of Boggs raised a debt-for-nature swap on Au- suade the FDIC to include settlement of its debt-for-nature related to Headwaters on be- gust 13, 1996, was his proposal to include a claims as part of the larger government ne- half of Mr. Hurwitz? To whom was the sub- settlement of OTS’s potential claims as part gotiations regarding the Headwaters Forest. ject of debt-for-nature related to Headwaters of the negotiations then underway between On August 12, 1996, Mr. Thomas Boggs of the raised? Mr. Hurwitz, MAXXAM, and Pacific Lumber law Patton Boggs, representing Mr. Hurwitz, FDIC Response: As stated in our response Company, and the United States Department met with me and Deputy General Counsel to Question 2, John Martin with the law firm of the Interior, for the sale of a portion of Jack Smith and proposed to settle the FDIC of Patton Boggs first raised the subject of a the Headwaters Forest to the federal govern- and the Office of Thrift Supervision claims debt-for-nature settlement on behalf of Mr. ment. Mr. Boggs raised this matter in a tele- as part of an agreement to trade the Head- Hurwitz and Maxxam indirectly with the phone call to Richard Stearns. waters Forest for other government prop- FDIC in a telephone call to Allen I hope this fully responds to the questions erty, contingent on favorable tax rulings McReynolds, on or about July 13, 1995. Mr. contained in your letter. from the Internal Revenue Service. At that McReynolds subsequently raised the subject Sincerely yours, meeting, Mr. Boggs indicated that Mr. with the FDIC during a meeting on July 21, CAROLYN J. BUCK, Hurwitz expected to minimize the financial 1995. This is confirmed by the depositions Chief Counsel. impact of a settlement on Maxxam by ob- under oath of Mr. McReynolds and Mr. Rob- taining favorable tax advantage. I advised ert DeHenzel, an attorney for the FDIC. Mr. Boggs that his proposal was unaccept- 4. Question: What was the context in which FEDERAL DEPOSIT able because it did not provide sufficient it was raised? In what medium was it first INSURANCE CORPORATION, value to the FDIC. raised (e.g. in writing, by phone, in person)? Washington, DC, October 6, 2000. On September 6, 1996, the FDIC received a FDIC Response: As stated in our response DUANE GIBSON, letter from Mr. John Douglas of the law firm to Questions 2 and 3, the subject of a debt- General Counsel, Oversight and Investigations, of Alson & Bird, also representing Mr. for-nature settlement of FDIC’s claims was House of Representatives, Committee on Re- Hurwitz, requesting a settlement meeting initially raised in an after hours telephone sources, Washington, DC. with the FDIC and OTS to discuss a proposal call to the home of Mr. McReynolds by John DEAR MR. GIBSON: This letter responds to that certain timber acreage by contributed Martin of the law firm of Patton Boggs, on your letter of October 3, 2000, requesting the to the FDIC and OTS to settle our pending behalf of Mr. Hurwitz and Maxxam. The con- Federal Deposit Insurance Corporation to re- claims as part of a larger Headwaters deal. text of this and following communications spond to specific questions and provide sup- At the meeting on September 11, 1996, Mr. was an effort by representatives of Mr. porting documentation regarding the ‘‘debt- Douglas proposed giving the FDIC and OTS Hurwitz to include settlement of the FDIC’s for-nature’’ discussions between the FDIC land in settlement of pending claims. On this claims as part of a negotiated transfer by and Charles Hurwitz. and several other occasions representatives Mr. Hurwitz and Maxxam to the U.S. Gov- 1. Question: Is the quote of Mr. Kroener of Mr. Hurwitz indicated that they could ernment. cited in the August 17, 2000 American Banker offer more value of the FDIC in trees than I have enclosed copies of relevant docu- accurate? cash. Also on September 11th, the FDIC re- ments already produced to the Committee in FDIC Response: A story in the August 17, ceived a ‘‘Draft of Proposed Headwaters For- response to your subpoena that support this 2000 American Banker included a quotation est Exchange Agreement’’ from Patton response. Please do not hesitate to contact from me that stated, ‘‘The so-called debt-for- Boggs that proposed settlement of all FDIC me if you have any further questions. nature swap was first offered by Mr. claims as part of the larger government Sincerely, Hurwitz’s counsel, not the FDIC. While the Headwaters exchange agreement. On Sep- WILLIAM F. KROENER, III FDIC has said it remained open to any ap- tember 12, 1996, the FDIC received a letter General Counsel. Enclosures. propriate settlement, including a debt-for- from Mr. Douglas specifically authorizing nature swap, it has also told Mr. Hurwitz’s the FDIC to discuss this proposal with other HOUSE OF REPRESENTATIVES, lawyers that the FDIC’s preference is for a agencies, including ‘‘representatives of the COMMITTEE ON RESOURCES, cash payment.’’ This quotation is an accu- White House, the Department of the Treas- Washington, DC, October 3, 2000. rate statement. ury, the Department of Interior, the Depart- WILLIAM F. KROENER III, 2. Question: On what date did Mr. Hurwitz, ment of Agriculture and the Justice Depart- General Counsel, Federal Deposit Insurance Maxxam, Pacific Lumber Company or any ment [who] may all be involved in such dis- Corporation, Washington, DC. Representatives of this individual or these cussions.’’ CAROLYN J. BUCK, entities first raise the debt-for-nature related All proposals that linked the FDIC and Chief Counsel, Office of Thrift Supervision, to Headwaters? When was the subject subse- OTS cases with separate negotiations Mr. Washington, DC. quently raised? Hurwitz was having with the federal govern- DEAR MR. KROENER AND MS. BUCK: On June FDIC Response: Although the debt-for-na- ment over the Headwaters Forest were re- 16, 2000, Chairman Young opened the over- ture swap concept had been the subject of jected by the FDIC and OTS, despite Mr. sight review described in a letter to Ms. press stories and letters to the FDIC by Hurwitz’s insistence that the FDIC/OTS Tanoue, and Ms. Seidman, and assigned me members of the public and Congress for some claims be resolved as part of the overall as the lead staff investigator for the project. time, there had been no discussion of this agreement. The FDIC declined to participate On behalf of Chairman Young and Task issue between FDIC and Mr. Hurwitz or his in the negotiations regarding the Head- Force Chairman Doolitte, thank you for pro- representatives. In fact, the FDIC was pur- waters Agreement and its implementing leg- viding the records that you have sent to suing a substantial all-cash settlement islation to transfer the Headwaters Forest to date. I want to update you on the status of which it proposed to Mr. Hurwitz’s attorney the U.S. government. Mr. Hurwitz eventually the oversight project. We are now reviewing in a letter dated July 16, 1993. dropped his demand that the Headwaters the material that you provided, and will On or about July 13, 1995, John Martin of Agreement contain a resolution of the FDIC have follow-up questions for certain individ- the law firm Patton Boggs, on behalf of Mr. and OTS claims. The acquisition of much of uals soon. The Task Force for this oversight Hurwitz and Maxxam, called Allen the Headwaters Forest was authorized by project has expanded. Enclosed you will find McReynolds, Special Assistant to the Sec- Congress in November 1997. a letter that added Representative George retary of Interior, at his home at 8 p.m., urg- On February 17, 1998, Byron Wade on behalf Radanovich as a member. I thought you ing him to contact the FDIC to begin a dia- of Maxxam, sent a letter to the FDIC pro- would like to have a copy. logue to resolve the FDIC’s claims as part of posing a settlement of all OTS and FDIC In commenting about the ‘‘debt-for-na- a larger land transaction involving the Head- claims by transferring old growth redwoods ture’’ as it relates to Headwaters and the waters Forest that was being considered by to the FDIC. On February 19, 1998, the FDIC FDIC and OTS matters, Mr. Kroener was Mr. Hurwitz and the Department of Interior. responded by restating its longstanding posi- quoted in the August 17, 2000, American Mr. McReynolds followed up this request by tion that FDIC’s preference was to receive a Banker as follows: ‘‘The so-called debt-for- calling the FDIC and met with staff of the cash payment. In March 1998, the FDIC in- nature swap was first offered by Mr. FDIC Legal Division on July 21, 1995. It was formed Mr. Hurwitz’s attorneys that the Hurwitz’s counsel, not the FDIC.’’ In discus- during this meeting that the FDIC first FDIC could not accept old growth redwoods sions with OTS, I was told the same thing at- learned of Mr. Hurwitz’s interest in includ- to resolve the FDIC claims without addi- tributed to Mr. Kroener in American Banker. ing FDIC claims as part of the larger Head- tional legislation. His attorneys proposed This information and verification of it is im- waters negotiations. After the FDIC suit was ideas to solve the problem, but eventually portant to the oversight review, so the filed in August 1995, the feasibility of Mr. that effort dissolved. Chairman requests prompt answers (by Fri- Hurwitz’s proposal was discussed in several In summary, the possibility of a debt-for- day October 6, 2000) to the questions con- meetings between the FDIC, the Council on nature swap involving the FDIC was initi- tained in this letter, along with all supporting Environmental Quality, the Department of ated and pursued by representatives of Mr. documentation that verifies the answer from the Interior and others. Hurwitz beginning with an indirect contact perspective of the FDIC and the OTS. In addition, after the filing of the FDIC’s in July 1995 and continuing into 1998. The ef- 1) (FDIC only) Is the quote of Mr. Kroener lawsuit on August 2, 1995, Mr. Byron Wade, fort dissolved in 1998 and since then there cited above accurate? If not, what did Mr.

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00175 Fmt 0666 Sfmt 0634 E:\CR\FM\A20DE8.463 pfrm07 PsN: E20PT1 E2514 CONGRESSIONAL RECORD — Extensions of Remarks December 20, 2001 Kroener say in his comments to the Amer- poena, we believe that they were inadvert- vancement of claims against private parties ican Banker? ently omitted from the several boxes of doc- to ultimately obtain additional parcels of 2) (OTS only) Did Mr. Hurwitz, Maxxam, uments produced by the FDIC on July 7, 2000. land near or adjacent to the Headwaters For- Pacific Lumber Company or any representa- We regret the mistake that delayed the pro- est owned by the Pacific Lumber Company.’’ tives of this individual or these companies duction of these documents to the Com- The claims referred to involve a pending ad- ever raise with OTS or any of its representa- mittee. ministrative proceeding initiated in 1995 by tives the notion of a debt-for-nature swap re- This document production should satisfy the OTS, In the Matter of United Savings Asso- lated to Headwaters? our obligations under the subpoena. As with ciation of Texas et al., OTS Order No. AP 95– 3) On what date did Mr. Hurwitz, Maxxam, our prior document productions to the Com- 40 (December 26, 1995), against Charles E. Pacific Lumber Company or any representa- mittee, the enclosed documents include sen- Hurwitz and others in connection with the tives of this individual or these entities first sitive, highly confidential material that is 1988 failure of United Savings Association of raise the debt-for-nature related to Head- covered by attorney client and/or attorney Texas (USAT). waters? When was the subject subsequently work product privileges in the ongoing liti- According to Chairman Young’s memo- raised? gation against Mr. Hurwitz, including docu- randum, dated August 15, 2000, that accom- 4) Who first raised the subject of debt-for- ments that Mr. Hurwitz and his representa- panied the task force charter, several mem- nature related to Headwaters on behalf of tives are not entitled to review through the bers of the Resources committee requested Mr. Hurwitz? To whom was the subject of court proceedings. The FDIC does not waive that the Committee conduct oversight ‘‘on debt-for-nature related to Headwaters any privileges belonging to the FDIC or any attempts to break the Headwaters Forest raised? other agency as a result of providing these agreement by adding more acreage to the 5) What was the context in which it was documents to the Committee pursuant to the forest through a debt for nature swap.’’ As raised? In what medium was it first raised subpoena. detailed in the documentation provided by (e.g. in writing, by phone, in person)? In addition, we are producing documents OTS pursuant to the Committee’s June 30, Please provide all documentation supporting under the subpoena that are especially sen- 2000, subpoena, the OTS matter is an admin- answers to these questions (for example, copies sitive. These documents state the FDIC’s in- istrative proceeding brought by a federal of meeting notes or an affidavit verifying the ternal valuation of the case for settlement banking regulatory agency to address viola- answers). purposes. Because disclosure of this informa- tions of the banking laws. The proceeding If you have any questions, please contact tion would be extremely harmful to the was initiated nearly two years prior to the me at 225–1064. Thank you. FDIC’s litigation and settlement position, passage of the Public Law 106–180 (the Sincerely, we are providing the full document for the ‘‘Headwaters Forest Legislation’’) and, thus, DUANE GIBSON, Committee’s review, but have redacted the its initiation could not ‘‘run contrary to the General Counsel, actual valuation. This will allow the Com- Headwaters acquisition statute.’’ In addi- Oversight and Inves- mittee to review any material in the docu- tion, the pending OTS administrative pro- tigations. ment regarding the stated subjects of the in- ceeding was known to Charles Hurwitz (a re- cc: The Honorable John Doolittle. vestigation while ensuring against an inad- spondent in the proceeding), and to the Pa- vertent release of this highly sensitive infor- cific Lumber Company, at the time the Headwaters Forest agreement was approved HOUSE OF REPRESENTATIVES, mation. If the Committee has any concerns by Congress. The legislation does not men- COMMITTEE ON RESOURCES, about the redactions, we will permit the tion the OTS proceeding nor purport to re- Washington, DC, September 20, 2000. Committee staff to inspect the unredacted solve the OTS’s claims against Mr. Hurwitz. Hon. GEORGE RADANOVICH, versions in our offices. This contrasts to the legislation’s express House of Representatives, Washington, DC. As we stated in our prior correspondence, reference to at least two then pending legal DEAR GEORGE: On August 15, 2000, the Task the FDIC would strongly object to the dis- actions in the United States Court of Federal Force on Headwaters Forest and Related semination of privileged and confidential Claims and the California Superior Court. Issued of the Committee on Resources was documents to parties other than Committee Additionally, the documentation that the established. At that time, I appointed Rep- Members and staff. We have identified the OTS has already turned over to the Com- resentatives Doolittle, Pombo, and Brady to documents containing confidential informa- mittee in response to its June 30, 2000, sub- serve on the Task Force, along with yet to tion with a stamp bearing the designation poena shows that the OTS case was brought be designated minority members. ‘‘CONFIDENTIAL.’’ The failure of USAT to address violations of banking laws. The I know that you have been to the Head- cost the American taxpayer approximately subject of a debt for nature swap was first in- waters Forest and are interested serving on $1.6 billion and the inappropriate release of jected into this matter when counsel for the Task Force as well. I expect that the these documents could significantly harm Charles Hurwitz proposed transferring bulk of review being undertaken by the Task the FDIC’s ability to litigate this matter and timberland to the OTS as a means of settling Force to be accomplished during the last redue damages otherwise recoverable to re- the claims for restitution asserted by this three months of this year, and it is likely to imburse taxpayers for the losses arising out agency. OTS has consistently responded to include at least one hearing at some junc- of this failure. these proposals by stating that it prefers ture. Because of your interest in this sub- If you have any questions regarding this that any settlement include cash payments ject, your experience concerning the Head- production of documents, please do not hesi- by respondents. waters, your desire to serve on this special tate to contact Eric Spitler of the FDIC’s Of- In my letter to the Resource Committee panel, and your willingness to participate in fice of Legislative Affairs at (202) 898–3837. dated June 23, 2000, responding to the Com- studying this matter at a future hearing, I Sincerely, mittee’s request for documents, OTS advised hereby appoint you to be a Member of the WILLIAM F. KROENER, III, the Committee of our concern that the re- Task Force. General Counsel. lease of confidential information regarding Sincerely, Enclosures the OTS administrative proceeding ‘‘might DON YOUNG, cc: Honorable George Miller. compromise our pending adjudicatory proc- Chairman. ess.’’ The Committee’s chartering of a task cc. The Honorable George Miller. force to investigate the OTS proceeding has The Honorable John Doolittle. Attachments Omitted and Included in an Appendix Where Necessary heightened that concern. There is the poten- tial that the actions by the Committee may FEDERAL DEPOSIT INSURANCE OFFICE OF THRIFT SUPERVISION, be later viewed as having deprived the par- CORPORATION, DEPARTMENT OF THE TREASURY, ties to the administrative proceeding of due Washington, DC, September 11, 2000. Washington, DC, August 24, 2000. process and fairness and could result in the Hon. DON YOUNG, Hon. DON YOUNG, final administrative determination in this Chairman, Committee on Resources, House of Chairman, Committee on Resources, House of proceeding being nullified by a court of law. Representatives, Washington, DC. Representatives, Washington, DC. See, e.g., Pillsbury Co. v. FTC., 354 F.2d 952, 963 DEAR MR. CHAIRMAN: The letter is in fur- Hon. GEORGE MILLER, (5th Cir. 1966); Koniag Inc. v. Andrus, 580 F2d ther response to the subpoena duces tecum Ranking Minority Member, Committee on Re- 601, 610 (D.C. Cir.) cert. denied, 439 U.S. 1052 received by the Federal Deposit Insurance sources, House of Representatives, Wash- (1978). Corporation on July 6, 2000 seeking produc- ington, DC. As I explained in my June 23, 2000, letter, tion of copies of documents regarding the Re: U.S. House of Representatives, Com- the OTS enforcement action against Charles Headwaters Forest, a possible ‘‘debt for na- mittee on Resources Task Force on the E. Hurwitz is still pending before this agen- ture swap’’ and pending litigation regarding Headwaters Forest and Related Issues of cy. At the present time, all evidence has the FDIC and Mr. Charles E. Hurwitz arising the Committee on Resources been presented to the trier of fact and the out of the failure of United Savings Associa- DEAR CHAIRMAN YOUNG AND CONGRESSMAN matter is under advisement before an Ad- tion of Texas (USAT). MILLER: The Office of Thrift Supervision ministrative Law Judge (‘‘ALJ’’). Once the The enclosed documents were identified (‘‘OTS’’) recently received a copy of the ALJ renders his recommended decision, the pursuant to the subpoena issued by the Com- above-referenced task force charter that au- matter will go before the Director of the mittee. Although these documents were thorizes an investigation into the alleged OTS for further briefing by the parties and a identified and copied in response to the sub- ‘‘Office of Thrift Supervisions’s (OTS) ad- final agency determination. To avoid any

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00176 Fmt 0666 Sfmt 0634 E:\CR\FM\A20DE8.466 pfrm07 PsN: E20PT1 December 20, 2001 CONGRESSIONAL RECORD — Extensions of Remarks E2515 claims of unfairness or denial of due process, your staff and the banking regulators in pur- ment of the Interior (including the Office of we urge the Committee to forbear from car- suing and continuing to pursue the above- the Secretary and the Bureau of Land Man- rying out its proposed investigation at least referenced actions to leverage yet more agement) and the FDIC or OTS (or any em- until the Director has issued a final agency Headwaters ‘‘nature’’ for a questionable and ployee of the OTS or FDIC) that relates to or decision in this matter. This would allow the uncertain ‘‘debt.’’ mentions the Headwaters Forest or ‘‘debt for Committee a full opportunity to investigate, We find disturbing that the Department of nature.’’ without risking an unintended interference the Interior documents that are now avail- 2. All records that relate in any way to the with the ongoing OTS administrative pro- able in the press clearly state that there is FDIC or OTS advancement of claims against ceeding. ‘‘support for a debt-for-nature swap for the Mr. Charles Hurwitz and/or MAXXAM that Thank you for your consideration of this FDIC and OTS claims . . .’’ and we are also in any way mention ‘‘debt for nature,’’ request. alarmed with what your Special Assistant, the Headwaters Forest, or the Pacific Lum- Sincerely, Mr. Allen McReynolds reports about the ber Company, including but not limited to CAROLYN J. BUCK, interaction between the Department and the any records relate to obtaining additional Chief Counsel. banking regulators. He unequivocally stated parcels of land referred to as of the Head- that, ‘‘FDIC and OTS are amendable to this waters Forest, which were or are owned by strategy [the debt for nature acquisition the Pacific Lumber Company. HOUSE OF REPRESENTATIVES, strategy] if the Administration supports it.’’ 3. All records that relate in any way to the COMMITTEE ON RESOURCES, The admission of coordination with banking FDIC or OTS advancement of claims against Washington, DC, August 16, 2000. regulators and backdoor lobbying may be Mr. Charles Hurwitz and/or MAXXAM that Hon. BRUCE BABBITT, common practice for your department. How- also in any way mention (or are to or from) Secretary, Department of the Interior, Wash- ever, your department, and perhaps others, the Rose Foundation, the Turner Foundation ington, DC. appears to have influenced the judgement of or any other grant-making organization and DEAR MR. SECRETARY: The legislative, banking regulators, who were ‘‘amenable’’ to that in any way relate to strategies or legal oversight, and investigative responsibilities creating a debt that could be swapped for na- theories for acquisitions or potential acqui- under Rule X and Rule XI of the Rules of the ture. sitions of the Headwaters Forest or the con- United States House of Representatives, Request for Records. As this oversight in- cept of ‘‘debt for nature’’. Rule 6(b) of the Rules for the Committee on quiry has evolved, the need for departmental 4. All records that relate in any way to the Resources (the Committee), 106th Congress, records related to the subject of the over- FDIC or OTS advancement of claims against and Article I and Article IV of the United sight review has become increasingly appar- Mr. Charles Hurwitz and/or MAXXAM that States Constitution, require that the Com- ent. The Committee and the Task Force re- also in any way mention (or are to or from) mittee on Resources oversee and review the quire the prompt production of all depart- Earth First! North Coast Earth First!, Bay laws, policies, and practices, and operation mental records by the FDIC and OTS that re- Area Coalition on Headwaters, Circle of Life of the Department of the Interior (the De- late to the matter under review as outlined Foundation, The Trees Foundation, The partment), the public domain lands and re- above. In addition, the attached Schedule of Humboldt Watershed Council, The National sources managed by the Department, and Records specifies certain records or cat- Audubon Society, and/or the Sierra Club. any other entity that relates to or takes ac- egories of records that are also requested and 5. All records to, from, or referring to Mr. tion to influence departments or matters and must be produced pursuant to the authority Allen McReynolds that also relate to or refer laws within the Committee’s jurisdiction and under deadlines in this letter. The sched- to the Headwaters Forest, the FDIC or the under rule X(l). ule also contains the definition that applies OTS, or debt for nature. This jurisdiction extends to Title V of P.L. to the term ‘‘records.’’ 6. All records to, from, or referring to Ms. 105–83 concerning the legislation that au- Interviews. In addition to the information Kathleen (Katie) McGinty that also relate to thorized the acquisition of the Headwaters listed above, this inquiry may include a re- or refer to the Headwaters Forest, the FDIC Forest (land that is now managed by the Bu- quest to interview you and those in the em- or the OTS, or debt for nature. reau of Land Management) from Pacific ploy of the Department who have knowledge 7. All records referring or related to a Lumber Company. We cooperatively worked of the matters under review. meeting that occurred on October 22, 1995, in on this legislation and agreed on the terms Deadline. We request that you strictly which the Council on Environmental Quality of Title V, which embodied the agreement to comply with the deadlines for production Chairperson attended and that also relate to acquire Headwaters. The law extends to any which are as follows: response to this letter or refer to the Headwaters Forest, the FDIC future additions of related parcels of the by August 22, 2000, and delivery of the or the OTS, or debt for nature. Headwaters Forest from Pacific Lumber records 4:00 p.m., Friday, August 25, 2000, to 8. All records to or from anyone in the Of- Company, including additions through ‘‘debt the attention of Mr. Duane Gibson, 1324 fice of the Secretary that also relate to or for nature.’’ Members of this Committee, in- Longworth House Office Building. We also refer to the Headwaters Forest and the FDIC cluding me, approved of the inclusion of this request that you provide two sets of all or the OTS. legislative language in the Department of In- records requested. Lead Investigator. This review will be led at 9. All records that relate to or refer to any terior and Related Agencies Appropriations the staff level by Mr. Duane Gibson, the contact or communication between any em- Act, 1998. Committee’s General Counsel for Oversight ployee of the Department of the Interior and The oversight outlined in this letter is and investigations. We request that your Mr. Bruce Rinaldi, Mr. Ken Guido, Mr. Rob- being conducted through the Task Force on staff contact him (202–225–1064) after your re- ert DeHenzel, or Mr. Jeff Williams. the Headwaters Forest and Related Issues, ceipt and review of this letter. Mr. Gibson 10. All records showing or related to any which commences today, under the author- can assist with any questions. Thank you for contact or communication between anyone ity of Rule 7 of the Rules for the Committee your cooperation with this review of matters employed by, assigned to, or associated with on Resources. under the jurisdiction of this Committee. the Department of the Interior and anyone Oversight Matters Under Review. We have Please be aware that the Committee has the employed by, assigned to, or associated with initiated and now expanded an oversight re- authority to compel production of the the White House (including the Council on view of the Department of the Interior’s in- records that are requested should they not Environmental Quality), The Office of the volvement in the Federal Deposit Insurance be produced by the deadline listed above. We Vice President that relate in any way to the Corporation’s (FDIC) and the Office of Thrift hope that we will not need to employ this FDIC or OTS claims against Mr. Charles Supervision’s (OTS) advancement of claims authority. We anticipate your cooperation, Hurwitz and/or MAXXAM that also in any against private parties to ultimately obtain just as we cooperated to write the statute way mention, refer to, or relate to ‘‘debt for additional parcels of the Headwaters Forest and appropriated the funds to purchase the nature,’’ the Headwaters Forest, or the Pa- owned by the Pacific Lumber Company. This Headwaters Forest. cific Lumber Company. advancement runs contrary to the Head- Sincerely, waters acquisition statute referenced above. Definitions DON YOUNG, For purposes of this inquiry, the term The advancement may be at the behest of Chairman, Committee ‘‘record’’ or ‘‘records’’ includes, but is not militant elements of the extreme environ- on Resources. mental community. The advancement is limited to, copies of any item written, typed, JOHN T. DOOLITTLE, printed, recorded, transcribed, filmed, being undertaken via a 1995 civil suit (and Chairman, Task Force graphically portrayed, video or audio taped, any subsequent OTS administrative action) on the Headwaters however produced or reproduced, and in- filed by the FDIC in the United States Dis- Forest And Related cludes, but is not limited to any writing, re- trict Court for the Southern District of Issues. Texas against Mr. Charles E. Hurwitz in con- cc: Members, Committee on Resources production, transcription, photograph, or nection with the 1988 failure of the United video or audio recording, produced or stored Savings Association of Texas (USAT). The in any fashion, including any and all com- oversight review includes these subjects. SCHEDULE OF RECORDS puter entries, accounting materials, memo- We have several Department records in our HEADWATERS FOREST ADDITIONS AND DEBT FOR randa, minutes, diaries, telephone logs, tele- possession that relate to the matters under NATURE phone message slips, electronic messages (e- review, and we are alarmed about the appar- 1. All records related to or referring to any mails), tapes, notes, talking points, letters, ent deep involvement between members of contact between any employee of the Depart- journal entries, reports, studies, drawings,

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00177 Fmt 0666 Sfmt 0634 E:\CR\FM\A20DE8.468 pfrm07 PsN: E20PT1 E2516 CONGRESSIONAL RECORD — Extensions of Remarks December 20, 2001 calendars, manuals, press releases, opinions, Hearings force, and will leave three positions open for documents, analyses, messages, summaries, Subject to the Rules of the House of Rep- Members that you select. Should you have bulletins, disks, briefing materials and resentative and the Rules of the Committee any questions, recommendations, or names notes, cover sheets or routing cover sheets or on Resources, the Task Force may hold hear- of Members who wish to serve on the task any other machine readable material of any ings on matters within its jurisdiction. The force, please ask that your staff direct them sort whether prepared by current or former Chairman of the Committee shall approve all to me through Mr. Duane Gibson (5–1064). employees, agents, consultants or by any hearings prior to their announcement. Thank you. non-employee without limitation and shall Staff Sincerely, also include redacted and unredacted DON YOUNG, The Chairman of the Committee shall des- versions of the same record. The term in- Chairman. cludes records that are in the physical pos- ignate professional and support staff to as- session of the Department of the Interior and sist the Task Force in carrying out its duties OFFICE OF THRIFT SUPERVISION, records that were formerly in the physical and functions. Consistent with the Rules of DEPARTMENT OF THE TREASURY, possession of the Department, as well as the House of Representatives, persons em- Washington, DC, August 1, 2000. records that are in storage. ployed by personal offices of Members may DUANE GIBSON, Esq., Furthermore, with respect to this request, not serve as staff to the Committee and its the terms ‘‘refer’’, ‘‘relate’’, and ‘‘con- subdivisions. The Ranking Minority Member General Counsel, Oversight and Investigations, cerning’’, means anything that constitutes, may also designate staff to assist the Task Committee on Resources, House of Rep- contains, embodies, identifies, mentions, Force. resentatives, Washington, DC. DEAR MR. GIBSON: Set forth below are deals with, in any manner that matter under Travel OTS’s responses to your questions, which review. All travel by Members and staff of the were e-mailed to Kevin Petrasic on July 21, ‘‘FDIC’’ means Federal Deposit Insurance Task Force shall be authorized pursuant to 2000. Corporation. Rule 12 of the Committee and other applica- 1. ‘‘What is the total budget of OTS for the ‘‘OTS’’ means Office of Thrift Supervision. ble rules and guidelines and shall be limited past five years?’’ ‘‘Department’’ means Department of the to funds allocated by the Chairman of the Interior. full Committee for that purpose. Committee Year Budget MAXXAM means MAXXAM Inc., Pacific funds may not be used to pay for travel by 1999 ...... $154,313,750 Lumber Company, and United Savings Asso- persons not employed by the Committee and 1998 ...... 147,253,450 ciation of Texas. all travel shall conform with applicable rules 1997 ...... 144,948,050 of the House of Representatives and the 1996 ...... 148,758,100 Committee. 1995 ...... 170,300,500 HOUSE OF REPRESENTATIVES, COMMITTEE ON RESOURCES, Rules 2. ‘‘What is the OTS authorizing statute? Washington, DC, August 15, 2000. A task force is a subdivision of the Com- Please send a copy.’’ Task Force on the Headwaters Forest and mittee and shall comply with all applicable 12 USC 1462a, 1464. A copy is attached. Related Issues of the Committee on Re- rules and guidelines of the House of Rep- 3. ‘‘How many cases are being pursued by sources resentatives, the Committee on Resources, the OTS for the FDIC in each of the last five years?’’ Authority and the Committee on House Oversight. The activities of the Task Force are subject to The OTS does not pursue cases for the Pursuant to Rule 7 of the Committee on addional directon and supervision as the FDIC. By way of background, the Financial Resources (Committee), the Chairman of the Chairman of the Committee may from time Institutions Reform, Recovery, and Enforce- Committee is authorized, after consultation to time impose. ment Act of 1989. Pub. L. 101–73 (August 9, with the Ranking Minority Member, to ap- DON YOUNG, 1989), created the OTS as the primary federal point task forces to carry out certain duties Chairman. regulator of savings associations and author- and functions of the Committee. The Chair- ized the OTS to pursue administrative en- man hereby appoints the Members listed forcement actions against individuals and HOUSE OF REPRESENTATIVES, below to the Task Force on the Headwaters entities to safeguard the thrift industry, its COMMITTEE ON RESOURCES, Forest and Related Issues to carry out the depositors and the federal deposit insurance oversight and investigative duties and func- Washington, DC, August 15, 2000. funds. 12 U.S.C. 1464 and 1818. One of the rem- To: Members, Committee on Resources tions of the Committee regarding the over- edies available to the OTS and other banking From: Don Young, Chairman sight review specified in the June 16, 2000, regulators in these administrative enforce- Re: Task Force letter (attached hereto), subject to the terms ment proceedings is to obtain restitution for Several Members have requested that the and conditions listed below. losses suffered by an insured depository in- Committee conduct oversight on attempts to Members stitution. 12 U.S.C. 1818(b)(6). If the OTS suc- break the Headwaters Forest agreement by ceeds in recovering restitution, it is returned Republicans—Doolittle (Chairman), adding more acreage to the forest through a to the institution. Pombo, Thornberry, Brady, and Young (ex debt for nature swap. I initiated an oversight When a savings association fails, the OTS officio). review of this matter in June, and today I Democrats—Three Members of the Com- must appoint the FDIC as receiver for the in- created a task force to further study the mittee recommended by the Ranking Minor- stitution. 12 U.S.C. 1464(d)(2). As the ap- issues outlined in the oversight review. A ity Member and Miller (ex officio). pointed receiver, the FDIC ‘‘steps into the copy of the task force charter is attached. shoes’’ of the failed institutions to manage Duration The task force will be chaired by John Doo- its assets. 12 U.S.C. 1821. The OTS would then The Task Force will commence on August little. Republican Members of the task force pay any restitution recovered in its adminis- 16, 2000, and will terminate on December 31, are listed in the charter, and I have reserved trative enforcement action to the FDIC as 2000, or on an earlier date that the Chairman three slots for Democrat Members to be receiver. of the Committee may designate. With a du- named by Mr. Miller. The task force will op- Whether an institution is open or being ration of less than six months, the task force erate much like a subcommittee and may run by FDIC as receiver, those running the will not count against the subcommittee hold hearings as needed to examine the institution may advise OTS of possible viola- limit under Rule X, clause 5(b)(2) of the issues for the oversight review. tions of law that may warrant action by Rules of the House of Representatives. OTS. As part of its investigation, OTS will Jurisdiction HOUSE OF REPRESENTATIVES, obtain information from the institution and The Task Force shall review and study the COMMITTEE ON RESOURCES, then make an independent determination following matters related to the Headwaters Washington, DC, August 14, 2000. under OTS’s statutory authority whether to Forest (which is managed by the Bureau of Hon. GEORGE MILLER, bring any enforcement action. Land Management and was purchased pursu- Committee on Resources, Longworth HOB, As receiver, FDIC has separate legal au- ant to Title V of P.L. 105–83): (1) the Federal Washington, DC. thority to pursue private legal actions for re- Deposit Insurance Corporation’s (FDIC) and DEAR GEORGE: On July 26, 2000, your staff covery of damages on behalf of the institu- the Office of Thrift Supervision’s (OTS) ad- was notified that I was considering estab- tion, its creditors and shareholders. The vancement of claims against private parties lishing a task force to examine the issues OTS’s statutory authority to pursue enforce- to ultimately obtain additional parcels of and subjects raised in the June 18, 2000, let- ment actions is separate from the FDIC’s au- land near or adjacent to the Headwaters For- ter that launched an oversight review about thority as receiver. The federal courts have est owned by the Pacific Lumber Company; matters related to the Headwaters Forest. consistently recognized this distinction be- (2) the potential impact of advancement of Our staffs discussed the task force and over- tween OTS’s administrative enforcement au- such claims to expand the Headwaters For- sight project prior to the August recess, and thority and the FDIC’s authority as receiver est; and (3) the matters outlined in the at- my staff requested that you name three to bring suit in federal court. See, e.g., Simp- tached June 16, 2000, letter initiating an Members to the Task Force. To date I have son v. OTS, 29 F.3d 1418, 1423 (9th Cir. 1994), oversight review concerning the Headwaters not received your selection of minority cert. denied, 513 U.S. 1148 (1995); Akin v. OTS, Forest. members. I intend to proceed with this task 950 F.2d 1180, 1185 (5th Cir. 1992). As in the

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00178 Fmt 0666 Sfmt 0634 E:\CR\FM\A20DE8.470 pfrm07 PsN: E20PT1 December 20, 2001 CONGRESSIONAL RECORD — Extensions of Remarks E2517 USAT matter, the courts have held that the 6. ‘‘How much has the FDIC reimbursed the This is not the amount sought by OTS in two agencies may pursue separate, but con- OTS for that work broken down by year?’’ the case. The $1.6 billion figure is the cost to current, legal proceedings in furtherance of FDIC has reimbursed the OTS for legal fees the federal deposit insurance fund from pay- their separate legal responsibilities. See Res- and out-of-pocket expenses in the USAT ad- ing of depositors due to the collapse of olution Trust Corp. v. Ryan, 801 F.Supp. 1545 ministrative action as follows: USAT. (S.D.Miss. 1992). Sincerely yours, With this as background, the OTS has Year Amount 1995 ...... $529,452 CAROLYN J. BUCK, issued fifteen orders in enforcement pro- 1996 ...... 455,895 Chief Counsel. ceedings in the last five years (plus the first 1997 ...... 435,867 Attachment. half of this year) that resulted in restitution 1998 ...... 663,403 obtained and paid to the FDIC as receiver, as 1999 ...... 857,182 follows: 2000 ...... 61,026 FEDERAL DEPOSIT INSURANCE CORPORATION, Year Institution Amount Total ...... 3,002,825 Washington, DC, July 7, 2000. Hon. DON YOUNG, 2000 (to date) ...... One order ...... $3,169,115 To date, the OTS has recovered 1999 ...... Three orders ...... 1,197,000 Chairman, Committee on Resources, House of 1998 ...... Three orders ...... 1,319,000 $10,876,426.98 in restitution in the USAT ad- Representatives, Washington, DC. 1997 ...... No orders. ministrative action, which has been paid to DEAR CHAIRMAN YOUNG: As requested in 1996 ...... Four orders ...... 29,050,000 the FDIC, through settlements with United 1995 ...... Four orders ...... 3,600,000 your June 20, 2000 letter as the Chairman of Financial Group, Inc., the holding company the House Committee on Resources, and the 4. ‘‘How many independent of the FDIC are for USAT, and with five individual former of- June 20, 2000 subpoena by the Committee on being pursued?’’ ficers and directors of USAT. Resources, we are providing the Committee As explained above, all OTS enforcement 7. ‘‘How has the FDIC been involved with with the enclosed material. It is my under- actions are independent of the half of this the OTS on the USAT case?’’ standing that pursuant to conversations be- year) by the OTS, either through administra- The FDIC is not a party in the USAT ad- tween Committee staff and staff of the Fed- tive proceedings or consent settlements, are: ministrative action brought by OTS. The eral Deposit Insurance Corporation, the FDIC has shared information and documents Committee has requested that two copies of Number of that the OTS has requested to prepare its the documents be produced to the majority, Enforcement Orders case, and the two agencies have consulted on and one to the minority. We are enclosing Year legal theories and other matters. two copies of responsive documents with this 2000 (to date) ...... 37 The respondents in the case have executed letter, and will provide an additional copy 1999 ...... 42 a joint defense agreement pursuant to which directly to Ranking Minority Member 1998 ...... 44 they shared information with each other, co- George Miller. 1997 ...... 80 ordinated discovery and motions, presented 1996 ...... 92 joint briefs and memoranda of law and An index to the documents and privilege 1995 ...... 132 shared counsel. In addition, Maxxam Cor- log is also enclosed. We are not withholding 5. ‘‘How many lawyers and non-lawyers are poration has agreed to pay legal expenses on any responsive document, regardless of working on the OTS/FDIC case against behalf of several of the respondents. whether it is privileged. Where privileged USAT?’’ 8. ‘‘Where in terms of dollar amount does documents are provided, they are so identi- There are not OTS lawyers or non-lawyers the USAT case fall compared to other fied and marked, and the applicable privi- working on the FDIC USAT case. It is an en- cases?’’ leges are identified in the accompanying tirely separate case pending in federal court OTS seeks $821,319,405 in restitution in the index and log. in Houston, TX, in which the OTS is not a case, which is the largest dollar amount In delivering these records, it is our inten- party. Maxxam Corporation filed a motion to sought by OTS in a litigated case. The next tion to preserve any and all privileges or ex- add OTS as an involuntarily plaintiff in that largest case involved Lincoln Savings and emptions from disclosure under the Freedom action, but Maxxam’s motion was denied by Loan Association, Irvine, CA case, where the of Information Act or other laws, rules and the federal court in 1997. OTS obtained $600 million, through orders regulations for those documents marked as During the trial of the OTS’s USAT admin- and settlements against several respondents, privileged should they be requested by any istrative case, OTS had five lawyers assigned to be paid to the FDIC as receiver for the person other than the Congress of the United full-time to the case. They were assisted by failed institution. In numerous other cases, States acting in its official capacity. We ap- between two and six paralegals at different including San Jacinto Savings, Bellaire, TX, preciate the efforts of the Committee and its times. The respondents were represented by Columbia Savings, Beverly Hills, CA, and staff to maintain the strict confidentiality more than 20 attorneys who appeared in the General Bank, Miami, FL, OTS has obtained of these documents. case of their behalf. These attorneys were as- more than $500 million through orders and Sincerely yours, sisted by attorneys, paralegals and support settlements to be paid to the FDIC. PATRICIA M. BLACK, staff from the four major law firms rep- 9. ‘‘How is the $1.6 billion figure derived for Counsel to the Inspector General. resenting respondents. the USAT case?’’ LOG OF PRIVILEGED DOCUMENTS PRODUCTION TO THE COMMITTEE ON RESOURCES, U.S. HOUSE OF REPRESENTATIVES, JULY 7, 2000

Bates numbered pages Date of documents Description of documents Privilege

000000–000018 October 13, 1998 ...... Hurwitz Motion to Remove Confidentiality Designation of FDIC Board Meeting Materials (Under Seal) ...... Deliberative Process. 000019–000034 ...... Federal Deposit Insurance Corporation’s Opposition to Hurwitz’s Motion to Remove Confidentiality Designation 000035–000053 May 11, 1998 ...... Hurwitz’s Request for Disposition of Motions Affecting Disclosure of the ATS Memo 000054–000070 May 8, 1998 ...... Hopkins & Sutter Letter Re: FDIC V. Hurwitz 000071–000074 November 15, 1995 ...... Clements, O’Neill, Peirce, & Nickens Letter Re: Federal Deposit Insurance Corporation, as manager of FSLIC Resolution v. Charles E. Hurwitz, Civil Action No. H–95–3956, United States District Court for the Southern District of Texas, Houston Divison 000075–000097 November 16, 1995 ...... FDIC as a manager of the FSLIC Resolution Fund v. Charles E. Hurwitz—Hearing Transcript 000098–000104 October 10, 1997 ...... FDIC v. Charles E. Hurwitz—Order to Produce 000105–000152 September 30, 1997 ...... Hurwitz’s Memorandum in Support of His Motions For Sanctions and Dismissal 000153–000185 October 19, 1997 ...... FDIC’s Memorandum in Response to Hurwitz’s Motion for Sanctions and Dismissal 000186–000189 Cross-Walk of Issues Raised By Attorney Work Product Deliberative Process. Congressman DeLay Regard- ing USAT Litigation To Objec- tives Outlined in OCRE’s Eval- uation Proposal. 000190–000196 April 19, 1999 ...... Memo from Schulz to Kroener, Subject: OIG Investigation of the Hurwitz Case ...... Attorney Client Privilege Attorney Work Product Deliberative Process 000197–000200 February 3, 1999 ...... Letter to Tanoue and Gianni re: Hurwitz from Congressman DeLay ...... 000201–000215 March 10, 1999 ...... Executive Summary—Authorization of Expenditures ...... Attorney Client Privilege Attorney Work Product Deliberative Process. 000216–000219 March 2, 1999 ...... Letter from Chairman Tanoue and Response to an Inquiry from the Honorable Tom DeLay 000220–000222 April 8, 1999 ...... Draft Letter to Congressman DeLay from Gianni re: Hurwitz ...... Deliberative Process. 000223–000258 ...... DeLay Allegation Spreadsheet (with notations) ...... Attorney Client Privilege Attorney Work Product Deliberative Process. 000259–000268 May 5, 1999 ...... Memorandum—Motions in the Hurwitz litigation raising issues that the Office of Inspector General proposes to inves- Attorney Client Privilege Attorney Work Product Deliberative tigate (Under Seal). Process. 000269–000271 ...... Hurwitz Case Summary ...... Attorney Client Privilege Attorney Work Product. 000272–000276 ...... Preliminary Comparison of Key Provisions in FDIC/PLS Guidelines With the July 27, 1995 Authority to Institute PLS Memo Attorney Client Privilege Attorney Work Product Deliberative Prepared for the USAT Litigation. Process. 000277–000284 ...... Evaluation Action Plan ...... Attorney Client Privilege Attorney Work Product Deliberative Process. 000285–000286 February 23, 1999 ...... FY2000 FDIC Inspector General VA–HUD Appropriations Subcommittee The Honorable Tom DeLay Questions for The Record

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00179 Fmt 0666 Sfmt 9920 E:\CR\FM\A20DE8.473 pfrm07 PsN: E20PT1 E2518 CONGRESSIONAL RECORD — Extensions of Remarks December 20, 2001 LOG OF PRIVILEGED DOCUMENTS PRODUCTION TO THE COMMITTEE ON RESOURCES, U.S. HOUSE OF REPRESENTATIVES, JULY 7, 2000—Continued

Bates numbered pages Date of documents Description of documents Privilege

000287–000291 March 25–26, 1999 ...... Record of March 25, 1999 Meeting with OIG Counsel Regarding Modified Approach to United Savings Association of Attorney Client Privilege Attorney Work Product Deliberative Texas (USAT) Evaluation. Process. 000292–000295 ...... Summary of Review of Issues Raised by Congressman DeLay ...... Attorney Client Privilege Attorney Work Product Deliberative Process. 000296–000299 ...... Inventory of Legal Documents Received 2/24/99 from Bob Dehenzel ...... Attorney Work Product Deliberative Process. 000300–000309 May 5, 1999 ...... Memorandum to File from Dehenzel re: Motions in the Hurwitz litigation raising issues that the Office of Inspector Gen- Attorney Work Product. eral proposes to investigate. 000310–000317 Undated Draft ...... Action Plan ...... Deliberative Process. 000318–000329 ...... Congressman DeLay Allegation Spreadsheet (without notations) 000330–000333 ...... Evaluation Proposal I ...... Attorney Client Privilege Attorney Work Product Deliberative Process. 000334–000341 ...... Evaluation Proposal II ...... Attorney Client Privilege Attorney Work Product Deliberative Process. 000342–000345 February 3, 1999 ...... Letter to Tanoue and Gianni re: Hurwitz from Congressman DeLay 000346–000347 September 30, 1998 ...... Letter to Congressman Bentsen from Tanoue 000348–000349 October 18, 1996 ...... Letter to Congressman Gonzalez from Tanoue 000350–000351 ...... Auditor’s Plan ...... Deliberative Process. 000352–000365 Various ...... News Articles 000366–000384 August 1, 1995 ...... Minutes of the Board of Directors ...... Attorney Client Privilege Attorney Work Product Deliberative Process. 000385–000389 June 1998 ...... Case Review Summary ...... Attorney Client Privilege Attorney Work Product. 000390–000391 ...... 4th Quarter 98 Top Ten ...... Attorney Client Privilege Attorney Work Product. 000392–000394 June 17, 1997 ...... Memorandum to David Einstein from Jeffrey Williams re: United Savings Association of Texas, FDIC v. Hurwitz and Re- Attorney Work Product. lated Matters. 000395–000400 ...... FDIC Briefing Outline ...... Attorney Client Privilege Attorney Work Product. 000401–000411 February 4, 1994 ...... Letter to Carolyn Lieberman from Jack Smith ...... Attorney Work Product Deliberative Process. 000412–000425 March 10, 1999 ...... Executive Summary—Authorization of Expenditures United Savings Association of Texas Houston, Texas, FIN#1815 ...... Attorney Client Privilege Attorney Work Product Deliberative Process. 000426–000433 September 12, 1995 ...... Letter to Chairman Helfer from Kroener ...... Attorney Client Privilege Attorney Work Product Deliberative Process. 000434–000437 October 20, 1995 ...... Gore Meeting Draft Discussion Points ...... Attorney Work Product. 000438 October 20, 1995 ...... Headwater Meeting Attendees 000439 October 25, 1995 ...... Headwaters Forest Meeting October 26 ...... Deliberative Process. 000440–000444 October 25, 1995 ...... Headwaters Forest Meeting October 26 ...... Deliberative Process. 000445–000446 October 26, 1995 ...... USAT Meeting Attendee List 000447–000474 November 7, 1995 ...... Memorandum from Jeffrey Williams, Subject: USAT/Charles Hurwitz ...... Deliberative Process. 000475 November 28, 1995 ...... Attendee List 000476 ...... Attendee List 000477 February 9, 1998 ...... Memorandum to Jeff Williams from John Garamendi Subject: Headwaters 000478–000481 October 9, 1998 ...... PLS Top 10 Report ...... Attorney Work Product. 000482–000483 January 19, 1999 ...... PLS Top Ten ...... Attorney Work Product. 000484–000486 ...... Discussion Points Concerning the Qui Tam Action ...... Attorney Work Product Deliberative Process. 000487 ...... Essential Points ...... Attorney Work Product. 000488–000489 June 28, 2000 ...... Assignment Status Report ...... Privacy Act Material. 000490–000491 June 21, 2000 ...... E-mail re: Congressional Document Request 000492–000493 June 17, 1999 ...... Record of Meeting with Congressman DeLay on FDIC’s Litigation Against Charles Hurwitz 000494–000495 May 4, 1999 ...... E-mail from Pat Black/Steve Beard re: Evaluation 99–003E ...... Attorney Client Privilege. 00496 March 31, 1999 ...... E-mail from Beard re: Additional Documents from Legal 000497 ...... Draft Inventory of other USAT documentation not received on 2/24/99, 3/4/99 and 3/23/99 from the FDIC Legal Division as of 3/24/99 000498–000505 ...... Draft Inventory of Documentation Received 2/24/99, 3/4/99, and 3/23/99 from FDIC Legal Division: 3 Accordion Files. As Attorney Client Privilege Attorney Work Product Deliberative of 3/24/99. Process. 000506–000513 ...... Evaluation Action Plan ...... Attorney Work Product Deliberative Process. 000514–000518 March 29, 1999 ...... Draft USAT/Hurwitz Timeline 000519–000523 March 25–26, 1999 ...... Record of Meeting with OIG Counsel Regarding Modified Approach to USAT Evaluation ...... Attorney Client Privilege Attorney Work Product Deliberative Process. 000524–000530 ...... Evaluation Action Plan ...... Deliberative Process. 000531–000538 ...... Draft Inventory of Documentation Received 2/24/99, 3/4/99, and 3/23/99 from Bob DeHenzel, Counsel, Legal Division: 3 Attorney Client Privilege Attorney Work Product Deliberative Accordion Files. As of 3/24/99. Process. 000539–000542 ...... Evaluation Proposal ...... Deliberative Process. 000543–000544 March 24, 1999 ...... Draft letter to Congressman Delay from Gianni (unsigned) ...... Deliberative Process. 000545 March 23, 1999 ...... E-mail Additional documents from Legal 000546–000547 ...... Letters to the Editors the Washington Post 000548–000551 ...... Evaluation Proposal ...... Deliberative Process. 000552–000553 ...... E-mail from Tom Ritz—USAT Documents ...... Deliberative Process. 000554–000559 ...... Draft Inventory of Documentation Received 2/24/99 and 3/4/99 form Bob DeHenzel, Counsel, Legal Division: 2 Accordion Deliberative Process. Files. As of 3/18/99. 000560–000562 March 17, 1999 ...... Draft USAT/Hurwitz Timeline 000563–000566 ...... Evaluation Proposal ...... Deliberative Process. 000567–000569 March 16, 1999 ...... E-mail from Beard—Subject: My comments on the proposal ...... Deliberative Process. 000570–000572 ...... USAT 99–003 Evaluation Plan ...... Deliberative Process. 000573–000588 Various ...... Various E-mails ...... Deliberative Process. 000589–000592 ...... Evaluation Proposal ...... Deliberative Process. 000593–000606 Various ...... Various E-mails ......

representatives are not entitled to review FDIC’s internal valuation of the case for set- through the court proceedings. The FDIC tlement purposes. Because disclosure of this FEDERAL DEPOSIT does not waive any privileges belonging to information would be extremely harmful to INSURANCE CORPORATION, Washington, DC, July 7, 2000. the FDIC or any other agency as a result of the FDIC’s litigation and settlement posi- providing these documents to the Committee tion, we are providing the full document for Hon. DON YOUNG, pursuant to the subpoena. the Committee’s review, but have redacted Chairman, Committee on Resources, House of As we stated in our prior correspondence, the actual valuation. This will allow the Representatives, Washington, DC. the FDIC would strongly object to the dis- Committee to review any material in the DEAR MR. CHAIRMAN: This letter is in re- semination of privileged and confidential document regarding the stated subjects of sponse to the subpoena duces tecum received documents to parties other than Committee the investigation while ensuring against an by the Federal Deposit Insurance Corpora- Members and staff. We have identified the inadvertent release of this highly sensitive tion on July 6, 2000 seeking production of documents containing confidential informa- information. If the Committee has any con- copies of documents regarding the Head- tion with a stamp bearing the designation cerns about the redactions, we will permit waters Forest, a possible ‘‘debt for nature ‘‘CONFIDENTIAL.’’ The failure of USAT the Committee staff to inspect the swap’’ and pending litigation regarding the cost the American taxpayer approximately unredacted versions in our offices. FDIC and Mr. Charles E. Hurwitz arising out $1.6 billion and the inappropriate release of The second set of documents includes ma- of the failure of United Savings Association these documents could significantly harm terials that have been placed under court of Texas (USAT). the FDIC’s ability to litigate this matter and seal in the litigation, or are naturally impli- This document production should satisfy reduce damages otherwise recoverable to re- cated by the Court’s order. These documents our obligations under the subpoena. The en- imburse taxpayers for the losses arising out are placed in a separately marked box. closed documents include sensitive, highly of this failure. Finally, there are some oversized maps, an confidential material that is covered by at- We are producing two sets of documents to audio tape of music from an environmental torney client and/or attorney work product the Committee under the subpoena that are group and two tapes of two voice mail mes- privileges in the ongoing litigation against especially sensitive. These materials are seg- sages left by Mr. Hurwitz’s counsel that we Mr. Hurwitz. In many cases, the production regated from the rest of the production. The have been unable to duplicate within the includes documents that Mr. Hurwitz and his first set includes documents that state the timeframe of the subpoena because of their

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00180 Fmt 0666 Sfmt 0634 E:\CR\FM\A20DE8.476 pfrm07 PsN: E20PT1 December 20, 2001 CONGRESSIONAL RECORD — Extensions of Remarks E2519 unique nature. These materials are available Finally, the enclosed material includes Because we expressed reservations about to the Committee for Inspection at our of- documents regarding settlement discussions our ability to protect the privileged nature fices or we can make arrangements to have in the ongoing litigation. Although this ma- of these documents by voluntarily respond- them copied if that is the Committee’s pref- terial is considered sensitive and confiden- ing to the Committee’s request for docu- erence. tial, counsel for Mr. Hurwitz and Maxxam ments, Mr. Gibson indicated that we can ex- If you have any questions regarding this were contacted and did not object to the re- pect to receive a subpoena. production of documents, please do not hesi- lease of this material in response to the We are concerned that dissemination of tate to contact Eric Spitler of the FDIC’s Of- Committee’s request. In addition, pursuant confidential and sensitive documents outside fice of Legislative Affairs. to instructions from Mr. Gibson, the en- the agency might compromise our pending Sincerely, closed production includes a representative adjudicatory process. For that reason we WILLIAM F. KROENER, III, sample of the postcards, petitions and letters asked that a document handling protocol be General Counsel. received by the FDIC regarding this matter. in place to maintain their confidentiality by The FDIC generally did not respond to these limiting access to Members of Congress and types of communications. Responses, if any, their staff. Mr. Gibson advised us that the FEDERAL DEPOSIT to correspondence from outside parties re- Committee does not have a general docu- INSURANCE CORPORATION, garding this litigation, including responses ment protocol but that all record requests Washington, DC, June 29, 2000. to Members of Congress, are being provided from the Committee are for the official busi- Hon. DON YOUNG, in these voluntary productions. In addition, ness of the Committee. For the record, we Chairman, Committee on Resources, House of with regard to responsive documents that note our objection to any publication or re- Representatives, Washington, DC. may be in the possession of the FDIC Office lease of these documents beyond Members of DEAR MR. CHAIRMAN: This letter is in fur- of Inspector General (OIG), we have shared the Committee and the staff. ther response to your June 16, 2000 request The second category of documents involves for copies of documents regarding the Head- the Committee’s request with the OIG and it is our understanding that the OIG will com- confidential internal OTS memoranda con- waters Forest, a possible ‘‘debt for nature cerning the bases for its investigation and swap’’ and pending litigation between the municate with your staff directly regarding any responsive OIG documents in their pos- claims that resulted in the adjudicatory pro- Federal Deposit Insurance Corporation and ceeding. As we explained to Mr. Gibson, Mr. Charles E. Hurwitz arising out of the session. If you have any questions regarding this these are extremely sensitive internal com- failure of United Savings Association of production of documents, please do not hesi- munications and, for the time being, we are Texas (USAT). near agreement on another means of con- Your staff has requested that we detail our tate to contact Eric Spitler of the FDIC’s Of- veying any possibly relevant information efforts to identify responsive documents. fice of Legislative Affairs. Sincerely, that may be in those documents. Upon receipt of the Committee’s request, the You had indicated in your letter that the Senior Deputy General Counsel sent a copy WILLIAM F. KROENER, III, General Counsel. Committee might wish to interview OTS em- of the request by e-mail to all current em- ployees. If that is necessary, we ask that you ployees who have participated in the litiga- contact our Office of Congressional Affairs tion and might have responsive documents. OFFICE OF THRIFT SUPERVISION, to arrange the interviews. If you have any Copies of the Committee’s requests also were DEPARTMENT OF THE TREASURY, questions, please contact Kevin Petrasic, Di- provided to the FDIC’s Executive Offices and Washington, DC, June 23, 2000. rector of Congressional Affairs at (202) 906– to Division and Office Directors who were Hon. DON YOUNG, 6452. asked to forward the e-mail to any employ- Chairman, Committee on Resources, House of Sincerely, ees they believed might have responsive doc- Representatives, Washington, DC. CAROLYN J. BUCK. uments in their possession. Employees were Dear CHAIRMAN YOUNG: This is in response cc: Rep. George Miller asked to respond to the e-mail within 24 to your June 16, 2000 information request hours and to provide copies of any responsive concerning allegations of a ‘‘debt for nature’’ documents to the Legal Division within 48 swap involving the Headwaters Forest. We FEDERAL DEPOSIT hours. Any employees who did not respond to are engaged in a search for the documents INSURANCE CORPORATION, the initial e-mail were contacted directly requested and with this letter are delivering Washington, DC, June 23, 2000. and directed to provide documents. The copies of a portion of the responsive docu- Hon. DON YOUNG, Legal Division has been reviewing the docu- ments to your office. Pursuant to agreement Chairman, Committee on Resources, House of ments for responsiveness and identifying any with Mr. Duane Gibson of your staff, we are Representatives, Washington, DC. issues regarding attorney-client and attor- providing a sample of the postcards and let- DEAR MR. CHAIRMAN: This letter is in fur- ney work product that might have an impact ters from the public; the full complement is ther response to your June 16, 2000, request on the FDIC’s ongoing litigation. available for your review, if you desire. for copies of documents regarding the Head- On Friday, June 23, 2000, the FDIC made an As we have explained to Mr. Gibson, the waters Forest, a possible ‘‘debt for nature initial production of responsive non-privi- Office of Thrift Supervision (OTS) is in the swap,’’ and pending litigation between the leged documents to the Committee. The midst of a formal adjudicatory enforcement Federal Deposit Insurance Corporation and FDIC is continuing to search for material re- proceeding pursuant to 12 U.S.C. 1818 against Mr. Charles E. Hurwitz arising out of the sponsive to the Committee’s request and is Mr. Charles Hurwitz and Maxxam Corpora- failure of United Savings Association of today making a second production of respon- tion concerning their involvement with Texas. sive non-privileged documents. As Chairman United Savings Association of Texas (USAT). Since receiving the Committee’s request Tanoue stated in her June 23 letter to the A lengthy administrative trial was held be- for documents, the FDIC has initiated an ag- Committee, the FDIC’s search has identified fore an administrative law judge (ALJ). The gressive search for responsive documents. documents that are covered by attorney-cli- ALJ is now reviewing the evidence presented With this letter, I am transmitting the ent and/or attorney work product privileges and post-trial briefs to prepare a rec- FDIC’s first submission of documents respon- in the current ongoing litigation with Mr. ommended decision for the Director of OTS. sive to the Committee’s June 16, 2000, re- Hurwitz. Following our expression of concern After the ALJ submits his recommended de- quest. As we stated in our letter of June 20, that voluntarily responding to the Commit- cision to the Director, the parties will have we anticipate that additional documents will tee’s request for privileged documents could the opportunity to file briefs with the Direc- be identified during the week of June 26 significantly harm our legal position in the tor concerning her final decision in the mat- when we have the opportunity to review the ongoing litigation, Mr. Duane Gibson of your ter. If the Director decides to order an en- files of key individuals involved with this staff indicated that the Committee will pro- forcement action against Mr. Hurwitz or matter who have been on leave since receipt vide a subpoena for these documents. Maxxam, they have the right to file an ap- of the Committee’s request, including the The FDIC is deeply concerned that the dis- peal with the U.S. Court of Appeals. General Counsel. We will promptly copy and semination of privileged, confidential and Because an enforcement proceeding is still transmit to the Committee responsive docu- sensitive material to parties outside of the pending before the agency, we have signifi- ments that are identified in this continuing Corporation could significantly injure our cant concerns about protecting the confiden- search. In addition, we have identified docu- ability to litigate this matter and reduce tiality of certain documents which are re- ments that are covered by attorney-client damages otherwise recoverable to reimburse sponsive to your request. These documents and/or attorney work product privileges. taxpayers for losses arising out of the failure fall into two categories: 1) material relating Therefore, the FDIC respectfully requests a of United Savings Association of Texas. It is to settlement discussions between Mr. subpoena from the Committee for the pro- our understanding that the documents re- Hurwitz and Maxxam, and 2) internal OTS duction of these documents in order to pro- quested by the Committee are for the official memoranda about OTS’ claims in this pro- tect our privileges in the current litigation. business of the Committee, but that there is ceeding. As to the first category, counsel for In addition to the documents included in no formal protocol that governs the dissemi- Mr. Hurwitz and Maxxam and OTS signed a this production, the FDIC has in its posses- nation of requested material. The FDIC confidentiality agreement concerning settle- sion several boxes of postcards, letters, and would strongly object to the dissemination ment discussions. We have requested of their petitions from sources outside the FDIC re- of privileged and confidential documents to counsel, and have received, a non-objection garding subjects identified in the Commit- parties other than Committee Members and to releasing documents about those discus- tee’s request. While the FDIC did not re- staff. sions to the Committee. spond to these incoming documents and they

VerDate 112000 06:09 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00181 Fmt 0666 Sfmt 0634 E:\CR\FM\A20DE8.477 pfrm07 PsN: E20PT1 E2520 CONGRESSIONAL RECORD — Extensions of Remarks December 20, 2001 do not contain any FDIC analysis or input, oversight project and Members of Com- by the officers and directors of USAT.’’ The we believe that they are covered by the Com- mittee. Mr. Gibson also said that at some report also said that: ‘‘* * * the directors and mittee’s request. Because copying these vo- point the documents may become public if senior management found themselves trying luminous documents will involve consider- used, for example, in a memorandum to the to keep the institution afloat and play an en- able time and expense, we would propose to Chairman or in hearings. Mr. Gibson also in- tirely new ball game at the same time. While make them available immediately to the dicated that if the Chairman receives any the profit taking strategy is established, the Committee for inspection at our offices. prior notification of why an agency views a directors’ motivation was maintenance of If you have any question regarding this document as sensitive, that the Chairman the institution in compliance with the cap- production of documents, please do not hesi- gives it substantial weight and factors it italization requirements and not self gain or tate to contact Eric Spitler or our Office of into decision-making on release or excerpted violation of their duty of loyalty * * * The Legislative Affairs at (202) 898–3837. release of the sensitive document. preliminary conclusion from the initial in- Sincerely, vestigation as to officer’s, director’s and DONNA TANOUE, HOUSE OF REPRESENTATIVES, other professionals’ liability was that there Chairman. COMMITTEE ON RESOURCES, did not appear to be any intentional fraud, Enclosures. Washington, DC, June 16, 2000. gross negligence, or patterns of self-deal- cc: Honorable George Miller. Hon. DONNA A. TANOUE, ing.’’ Chairman, Federal Deposit Insurance Corpora- The Federal District Court Judge in the tion, Washington, DC. FEDERAL DEPOSIT FDIC v. Hurwitz case required the FDIC to Hon. ELLEN SEIDMAN, INSURANCE CORPORATION, produce its authority to sue (‘‘ATS’’) memo- Director, Office of Thrift Supervision, Wash- Washington, DC, June 20, 2000. randum. In analyzing the probability of suc- ington, DC. HON. DON YOUNG, cess, the ATS memorandum concluded that Chairman, Committee on Resources, House of VIA FAX FOR PERSONAL ATTENTION OF the suit against Mr. Hurwitz was unlikely to Representatives, Washington, DC. ADDRESSEES survive summary judgment and, even if it DEAR MR. CHAIRMAN: Thank you for your DEAR CHAIRMAN TANOUE and DIRECTOR did, would have only a ‘‘marginal-at-best’’ recent letter requesting certain documents SEIDMAN: The legislative, oversight, and in- chance of succeeding on its merits. As noted regarding the Federal Deposit Insurance Cor- vestigative responsibilities under Rule X and above, the FDIC’s outside counsel agreed Rule XI of the Rules of the United States poration’s pending litigation against Mr. with this analysis and its conclusions. Nev- House of Representatives, Rule 6(b) of the Charles E. Hurwitz. As you know, the FDIC’s ertheless, in violation of the FDIC’s own in- Rules for the Committee on Resources (the suit against Mr. Hurwitz arises out of the ternal policy guidelines governing the initi- 1988 failure of United Savings Association of Committee), 106th Congress, and Article I and Article IV of the United States Constitu- ation of litigation, the FDIC ultimately de- Texas (USAT), a savings and loan failure cided to file suit. that cost the American taxpayer more than tion, require that the Committee on Re- $1.6 billion. sources oversee and review the laws, policies, I find particularly disturbing the fact that Although the FDIC rejects the Commit- practices, and operation of the Department the ATS memorandum specifically ref- tee’s allegations that the basis for the suit of the Interior (the Department), the public erences what appears to be the only possible against Mr. Hurwitz is an attempt to obtain domain lands and resources managed by the motive behind the FDIC’s decision to bring additional parcels of the Headwaters Forest, Department, and any other entity that re- this suit. The ATS memorandum acknowl- the FDIC intends to cooperate with the Com- lates to or takes action to influence depart- edges that Mr. Hurwitz is the Chairman, mittee’s investigation. The Committee has ments or matters and laws within the Com- Chief Executive Officer, and indirectly the made a broad request for documents related mittee’s jurisdiction under Rule X(l). This largest stockholder of MAXXAM Inc., a pub- to this matter and asked that they be pro- jurisdiction extends to Title V of P.L. 105–83 licly held company, which owns The Pacific duced by Friday, June 23, 2000. The FDIC is concerning the legislation that authorized Lumber Company (‘‘Pacific Lumber’’). Pa- dedicating significant resources to the Com- the acquisition of the Headwaters Forest cific Lumber owned, among other things, an mittee’s request and we expect to be able to (land that is now managed by the Bureau of approximately 5,000 acre tract of old growth produce the bulk of the documents on that Land Management) from Pacific Lumber redwood forest in northern California com- date. However, it is anticipated that some Company. It extends to any future additions monly referred to as the ‘‘Headwaters For- documents will not be identified by the dead- of related parcels of the Headwaters Forest est.’’ Beginning in 1994, private sector envi- line. For example, a few key staff involved from Pacific Lumber Company, including ad- ronmental activists began to lobby the Con- with this matter have been on leave since ditions through ‘‘debt for nature.’’ Members gress and the Administration furiously to the request was received and a search of of this Committee, including me, drafted and ensure that as much of the Headwaters For- their files cannot be completed until they re- negotiated this law and approved of its inclu- est as possible, if not all of it, remain turn the week of June 26. With regard to any sion in the Department of Interior and Re- unharvested by the company. documents that are not produced by June 23, lated Agencies Appropriations Act, 1998. Oversight Matters Under Review. I have ini- Environmental activists—predominantly 2000, the FDIC will provide documents to the Earth First!—also began an extensive cam- Committee as quickly as they can be identi- tiated an oversight review of the Federal De- paign to use the FDIC and the Office of fied and copied. posit Insurance Corporation’s (FDIC) and the Thrift Supervision (OTS) and to employ With regard to prospective interviews of Office of Thrift Supervision’s (OTS) advance- their litigation powers to create a threat of FDIC employees, we request that such inter- ment of claims against private parties to ul- liability that would force MAXXAM to sur- views be arranged through the FDIC’s Office timately obtain additional parcels of the render its ownership of the Headwaters For- of Legislative Affairs. If you or your staff Headwaters Forest owned by the Pacific have any questions regarding this matter, Lumber Company. This advancement runs est in exchange for dismissal of the USAT please contact Eric Spitler of the FDIC’s Of- contrary to the Headwaters acquisition stat- claims. Such a swap would apparently, in the fice of Legislative Affairs (202) 898–3837. ute referenced above, contrary to FDIC’s eyes of environmental advocates and their Sincerely, mission to oversee the nation’s financial sys- supporters, enable public acquisition of the tem, contrary to the interests of the federal DONNA TANOUE, Headwaters Forest and other surrounding Chairman. department under the jurisdiction of my lands without having to buy them for mar- committee that would manage such addi- ket value from Pacific Lumber or MAXXAM. tional Headwaters holdings. The advance- This concept came to be known as a ‘‘debt- To: Carolyn Buck ment may be in coordination with militant for-nature’’ swap (even though the alleged This may help you, Carolyn. Call if you have elements of the extreme environmental com- ‘‘debt’’ was merely the threat of what the any questions. Duane. munity. The advancement is being under- FDIC’s ATS memo concluded was a mar- We are concerned that dissemination of taken via a 1995 civil suit (and any subse- ginal-at-best lawsuit.) certain sensitive documents outside the quent OTS administrative action) filed by agency might compromise our pending adju- the FDIC in the United States District Court I understand that in a lobbying campaign, dicatory process. For that reason we ask for the Southern District of Texas against hundreds of letters were sent directly to the that you maintain the confidentiality of sen- Mr. Charles E. Hurwitz in connection with highest levels of the FDIC and OTS encour- sitive documents we identify by limiting ac- the 1988 failure of the United Savings Asso- aging the agencies to file suit against cess to Members of the Committee and their ciation of Texas (USAT). The oversight re- MAXXAM to ‘‘create’’ a debt that could be staff. Mr. Gibson has advised us that the view includes these subjects. ‘‘swapped’’ for the Headwaters Forest. In Committee does not have a general docu- I am aware that the FDIC conducted a fact, the ATS memorandum advised FDIC ment protocol, but that all record requests seven-year investigation of USAT’s failure senior management that the Clinton Admin- from the Committee are for the official busi- prior to the filing of the suit. I review the istration was ‘‘seriously interested’’ in pur- ness of the Committee. The information in FDIC’s conclusion that claims against Mr. suing a ‘‘debt-for-nature’’ swap and warned documents is generally used for informing Hurwitz were unwarranted and understand that the agency would come under severe members of the Committee. The persons that it issued a report finding ‘‘* * * no di- criticism from the environmental commu- with general access to the sensitive docu- rect evidence of insider trading, stock ma- nity if it did not proceed against Mr. Charles ments are staff working on the Committee nipulation or theft of corporate opportunity Hurwitz and MAXXAM.

VerDate 112000 06:30 Dec 28, 2001 Jkt 099060 PO 00000 Frm 00182 Fmt 0666 Sfmt 0634 E:\CR\FM\A20DE8.480 pfrm07 PsN: E20PT1 December 20, 2001 CONGRESSIONAL RECORD — Extensions of Remarks E2521 I have very serious concerns over the no- the authority and under deadlines in this let- 5. All records related to any contact be- tion that the FDIC somehow has the author- ter. The schedule also contains the definition tween the FDIC or OTS (or any employee of ity, let alone ‘‘the power and duty to protect that applies to the term ‘‘records.’’ the OTS or FDIC) and any group or indi- forest assets * * * and endangered and Interviews. In addition to the information vidual or group that relates to or mentions threatened species’’ as the extremist activ- listed above, this inquiry may include a re- the Headwaters Forest. quest to interview you and those in the em- ists told your office. I am not aware of FDIC 6. All records that relate in any way to the ploy of the FDIC and OTS who have knowl- or OTS authority or jurisdiction in these Federal Deposit Insurance Corporation’s edge of the matters under review. In addi- areas. However, the Committee on Resources (FDIC) Office of Thrift Supervision’s (OTS) tion, should the need for hearings arise, you does have the constitutional and jurisdic- advancement of claims against Mr. Charles and staff at the FDIC and OTS may be asked tional authority under the Rules of the Hurwitz and/or MAXXAM that also in any House of Representatives involving the to testify before the Committee. Deadline. I request that you strictly com- way mention ‘‘debt for nature’’ or the Head- Headwaters Forest, management of the waters Forest and are to, from, or involve Headwaters Forest, federal additions to the ply with the deadlines for production which are as follows: response to this letter by Mr. Bruce Rinaldi, Mr. Ken Guido, Mr. Rob- Headwaters Forest, and threatened and en- ert DeHenzel, or Mr. Jeff Williams. dangered species. June 20, 2000, and delivery of the records 4:00 In addition, as is evidenced in the fol- p.m., Friday, June 23, 2000, to the attention 7. All records showing or related to any lowing excerpt from a letter from an Earth of Mr. Duane Gibson, 1324 Longworth House contact or communication between anyone First! activist to the Federal District Court Office Building. I also request that you pro- employed by, assigned to, or associated with Judge overseeing the FDIC’s case against vide two sets of all records requested. the FDIC or the OTS and anyone employed MAXXAM, the environmental community Lead Investigator. This review will be led at by, assigned to, or associated with the White publicly claimed credit for manipulating the the staff level Mr. Duane Gibson, the Com- House (including the Council on Environ- mittee’s General Counsel for Oversight and FDIC and OTS into pursuing the ‘‘debt-for- mental Quality), The Office of the Vice Investigations. I request that your staff con- nature’’ course related to Headwaters: ‘‘As President, The Department of the Interior, tact him (202–225–1064) after your receipt and the initiator of the so-called ‘Debt-for-na- the Forest Service, or the Bureau of Land review of this letter. Mr. Gibson can assist ture’ campaign, I have decided to write you Management that relate in any way to the with any questions. Thank you for your co- prior to your making your final ruling FDIC or OTS claims against Mr. Charles operation with this review of matters under around this case. The campaign to encourage Hurwitz and/or MAXXAM that also in any the jurisdiction of this Committee. Please be the FDIC to sue Charles Hurwitz and the way mention, refer to, or relate to ‘‘debt for aware that the Committee has the authority MAXXAM Corporation was and is designed to nature,’’ the Headwaters Forest, or the Pa- to compel production of the records that are stand up on its own, regardless of whether a cific Lumber Company. requested should they not be produced by the debt for nature swap ensues . . . I have heard deadline listed above. I anticipate your co- DEFINITIONS it argued that the FDIC only filed this suit operation so that I will not need to employ to cave into pressure from citizens. Well may For the purposes of this inquiry, the term this authority. ‘‘record’’ or ‘‘records’’ includes, but is not I ask, de facto, what is wrong with pressure Sincerely, from citizens? (emphasis added) This is a limited to, copies of any item written, typed, DON YOUNG, printed, recorded, transcribed, filmed, strikingly candid admission and certainly Chairman. supports the conclusion that the pressure ex- graphically portrayed, video or audio taped, however produced, and includes, but is not erted was successful in prompting the FDIC SCHEDULE OF RECORDS—HEADWATERS FOREST limited to any writing, reproduction, tran- to file a suit that its internal policies would ADDITIONS AND DEBT FOR NATURE scription, photograph, or video or audio re- otherwise not have authorized. 1. All records that relate in any way to the Since the initiation of the litigation by the cording, produced or stored in any fashion, FDIC or OTS advancement of claims against FDIC and the OTS, the Federal and State of including any and all computer entries, ac- Mr. Charles Hurwitz and/or MAXXAM that California governments have purchased the counting materials, memoranda, minutes, also in any way mention ‘‘debt for nature,’’ Headwaters Forest. With the federal acquisi- diaries, telephone logs, telephone message the Headwaters Forest, or the Pacific Lum- slips, electronic messages (e-mails), tapes, tion, the issue was laid to rest. The purchase ber Company, including but not limited to notes, talking points, letters, journal en- was accomplished through legislation au- any records relate to obtaining additional tries, reports, studies, drawings, calendars, thored by Members of the Committee on Re- parcels of land referred to as of the Head- manuals, press releases, opinions, docu- sources, and is a subject within the jurisdic- waters Forest, which were or are owned by ments, analyses, messages, summaries, bul- tion of the Committee. The management of the Pacific Lumber Company. the Headwaters Forest is also within the ju- 2. All records that relate in any way to the letins, disks, briefing materials and notes, risdiction of the Committee. The legislation FDIC or OTS advancement of claims against cover sheets or routing cover sheets or any and agreement reached when Congress adopt- Mr. Charles Hurwitz and/or MAXXAM that other machine readable material of any sort ed Title V of P.L. 105–83 contemplated no ad- also in any way mention (or are to or from) whether prepared by current or former em- ditions to the Headwaters Forest over five the Rose Foundation (including Ms. Jill ployees, agents, consultants or by any non- acres. However, the extreme elements within Rattner), the Turner Foundation or any employee without limitation and shall also the environmental movement, the FDIC, and other grant-making organization and that in include redacted and unredacted versions of the OTS continue to pursue what appears to any way relate to strategies or legal theories the same record. The term includes records be an orchestrated agenda and cases against for acquisitions or potential acquisitions of that are in the physical possession of the MAXXAM and Mr. Charles Hurwitz to appar- the Headwaters Forest or the concept of FDIC or the OTS (as the case may be) and ently create a ‘‘debt’’ to be ‘‘swapped’’ for ‘‘debt for nature.’’ records that were formally in the physical additions to the Headwaters Forest owned by 3. All records that relate in any way to the possession of the FDIC or the OTS (as the Pacific Lumber. This idea is contrary to the FDIC or OTS advancement of claims against case may be), as well as records that are in agreement reached by Congress and the Ad- Mr. Charles Hurwitz and/or MAXXAM that storage. Furthermore, with respect to this ministration, contrary to the law, and con- also in any way mention (or are to or from) request, the terms ‘‘refer’’, ‘‘relate’’, and trary to the mission of the FDIC. Earth First!, North Coast Earth First!, Bay ‘‘concerning’’, means anything that con- As a result, I have initiated this oversight Area Coalition on Headwaters, Circle of Life stitutes, contains embodies, identifies, men- review and make the following request for Foundation, The Trees Foundation, The tions, deals with, in any manner the matter records in furtherance of the review. Humboldt Watershed Council, The National under review. Request for Records. The review requires the Audubon Society, and/or the Sierra Club. ‘‘FDIC’’ means Federal Deposit Insurance prompt production of all records by the FDIC 4. All records of any FDIC Board delibera- Corporation. and OTS that relate to the matter under re- tions, and any OTS deliberations, in which view as outlined above. In addition, the at- the decision to proceed with litigation ‘‘OTS’’ means Office of Thrift Supervision. tached Schedule of Records specifies certain against or claims against Mr. Charles MAXXAM means MAXXAM Inc., Pacific records or categories of records that are also Hurwitz and/or MAXXAM was considered or Lumber Company, and United Savings Asso- requested and must be produced pursuant to discussed. ciation of Texas.

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HIGHLIGHTS Senate and House passed H.J. Res. 79, Continuing Appropriations. Senate and House passed H.J. Res. 80, Convening of the Second Session of the 107th Congress. Senate agreed to the Conference Report on H.R. 3061, Labor/HHS/Edu- cation Appropriations Act. Senate agreed to the Conference Report on H.R. 2506, Foreign Oper- ations Appropriations Act. The House and Senate agreed to the conference report on H.R. 3338, DOD Appropriations. The House and Senate agreed to H. Con. Res. 295, providing for the sine die adjournment of the first session of the One Hundred Seventh Con- gress. Senate Port and Maritime Security Act: Senate passed S. Chamber Action 1214, to amend the Merchant Marine Act, 1936, to Routine Proceedings, pages S13773–S14084 establish a program to ensure greater security for Measures Introduced: Thirty-two bills and six res- United States seaports, after agreeing to the fol- olutions were introduced, as follows: S. 1860–1891, lowing amendment proposed thereto: Pages S13871–84 S.J. Res. 30, and S. Res. 194–198. Pages S13943–44 Hollings/McCain/Graham Amendment No. 2690, in the nature of a substitute. Page S13884 Measures Reported: S. 950, to amend the Clean Air Act to address Unemployment Assistance Extension: Senate problems concerning methyl tertiary butyl ether, passed S. 1622, to extend the period of availability with amendments. (S. Rept. No. 107–131) of unemployment assistance under the Robert T. S. 1206, to reauthorize the Appalachian Regional Stafford Disaster Relief and Emergency Assistance Development Act of 1965, with an amendment in Act in the case of victims of the terrorist attacks of the nature of a substitute. (S. Rept. No. 107–132) September 11, 2001. Page S13893 Pages S13942–43 Televising Zacarias Moussaoui Trial: Committee Measures Passed: on the Judiciary was discharged from further consid- eration of S. 1858, to permit the closed circuit tele- Investor and Capital Markets Fee Relief Act: vising of the criminal trial of Zacarias Moussaoui for Senate passed H.R. 1088, to amend the Securities the victims of September 11th, and the bill was then Exchange Act of 1934 to reduce fees collected by the passed, after agreeing to the following amendment Securities and Exchange Commission, clearing the proposed thereto: Pages S13893–94 measure for the President. Page S13830 Reid (for Allen) Amendment No. 2691, to clarify Adjournment Resolution: By 56 yeas to 40 nays the requirements of the trial court. Pages S13893–94 (Vote No. 379), Senate agreed to H. Con. Res. 295, Bioterrorism Response Act: Senate passed H.R. providing for the sine die adjournment of the first 3448, to improve the ability of the United States to session of the One Hundred Seventh Congress. prevent, prepare for, and respond to bioterrorism and Pages S13830–31

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other public health emergencies, after agreeing to Emergency Management Assistance Memorandum of the following amendment proposed thereto: Understanding. Pages S14050–52 Pages S13902–11 Radio Free Europe/Radio Liberty Recognition: Reid (for Frist/Kennedy/Gregg) Amendment No. Senate agreed to S. Con. Res. 92, recognizing Radio 2692, in the nature of a substitute. Page S13911 Free Europe/Radio Liberty’s success in promoting de- Senate insisted on its amendment, requested a mocracy and its continuing contribution to United conference with the House thereon, and the Chair States national interests. Page S14052 was authorized to appoint the following conferees on the part of the Senate: Senators Kennedy, Dodd, Bill Court Referral: Committee on the Judiciary Harkin, Mikulski, Jeffords, Gregg, Frist, Enzi, and was discharged from further consideration of S. Res. Hutchinson. Page S13911 83, referring S. 846 entitled ‘‘A bill for the relief of J.L. Simmons Company, Inc., of Champaign, Illi- Continuing Appropriations: Senate passed H.J. nois’’ to the chief judge of the United States Court Res. 79, making further continuing appropriations of Federal Claims for a report thereon, and the reso- for the fiscal year 2002, clearing the measure for the lution was then agreed to. Page S14052 President. Page S14029 Higher Education Reporting Requirement Sim- Convening of the Second Session: Senate passed plification: Senate passed H.R. 3346, to amend the H.J. Res. 80, appointing the day for the convening Internal Revenue Code of 1986 to simplify the re- of the second session of the One Hundred Seventh porting requirements relating to higher education Congress (January 23, 2002 at 12 noon), clearing the tuition and related expenses, clearing the measure for measure for the President. Page S14029 the President. Page S14052 United States Vice President Appreciations: Sen- Guadagno Visitors Center Designation: Senate ate agreed to S. Res. 195, tendering the thanks of the Senate to the Vice President for the courteous, passed H.R. 3334, to designate the Richard J. dignified, and impartial manner in which he has pre- Guadagno Headquarters and Visitors Center at sided over the deliberations of the Senate. Humboldt Bay National Wildlife Refuge, California, clearing the measure for the President. Page S14053 Page S14049 United States President Appreciation: Senate Todd Beamer Post Office Designation: Com- agreed to S. Res. 196, tendering the thanks of the mittee on Governmental Affairs was discharged from Senate to the President pro tempore for the cour- further consideration of H.R. 3248, to designate the teous, dignified, and impartial manner in which he facility of the United States Postal Service located at has presided over the deliberations of the Senate. 65 North Main Street in Cranbury, New Jersey, as Page S14049 the ‘‘Todd Beamer Post Office Building’’, and the bill was then passed, clearing the measure for the Senate Majority Leader Commendation: Senate President. Page S14053 agreed to S. Res. 197, a resolution to commend the exemplary leadership of the Majority Leader. Commending Daw Aung San Suu Kyi: Senate Page S14049 agreed to H. Con. Res. 211, commending Daw Aung San Suu Kyi on the 10th anniversary of her Senate Republican Leader Commendation: Sen- receiving the Nobel Peace Prize and expressing the ate agreed to S. Res. 198, to commend the exem- sense of the Congress with respect to the Govern- plary leadership of the Republican Leader. ment of Burma, after agreeing to a committee Page S14049 amendment in the nature of a substitute. Basic Pilot Extension Act: Senate passed H.R. Pages S14053–54 3030, to extend the basic pilot program for employ- ment eligibility verification, clearing the measure for Republic of Kazakhstan Congratulations: Com- mittee on Foreign Relations was discharged from the President. Page S14050 further consideration of S. Res. 194, congratulating Reuniting Korean Families: Senate agreed to S. the people and government of Kazakhstan on the Con. Res. 90, expressing the sense of the Congress tenth anniversary of the independence of the Repub- regarding the efforts of people of the United States lic of Kazakhstan, and the resolution was then of Korean ancestry to reunite with their family agreed to, after agreeing to the following amend- members in North Korea. Page S14050 ment proposed thereto: Page S14054 International Emergency Management Assist- Reid (for Brownback) Amendment No. 2693, to ance Understanding: Senate passed S.J. Res. 12, recognize Kazakhstan for their efforts in combating granting the consent of Congress to the International international terrorism. Page S14054

VerDate 11-MAY-2000 00:49 Dec 23, 2001 Jkt 099060 PO 00000 Frm 00002 Fmt 0627 Sfmt 0627 E:\CR\FM\D20DE1.REC pfrm01 PsN: D20DE1 D1282 CONGRESSIONAL RECORD — DAILY DIGEST December 20, 2001 American Wildlife Enhancement Act: Senate Treaty Traders/Investors: Senate passed H.R. passed S. 990, to amend the Pittman-Robertson 2277, to provide for work authorization for non- Wildlife Restoration Act to improve the provisions immigrant spouses of treaty traders and treaty inves- relating to wildlife conservation and restoration pro- tors, clearing the measure for the President. grams, after agreeing to a committee amendment in Page S14063 the nature of a substitute, and the following amend- Small Business Liability Relief and Brownfields ment proposed thereto: Pages S14054–59 Revitalization Act: Senate passed H.R. 2869, to Reid (for Smith (NH)) Amendment No. 2694, to provide certain relief for small businesses from liabil- make certain modifications to the bill. Page S14059 ity under the Comprehension Environmental Re- National Foreign Affairs Training Center: sponse, Compensation, and Liability Act of 1980, Committee on Foreign Affairs was discharged from and to amend such Act to promote the cleanup and further consideration of H.R. 3348, to designate the reuse of brownfields, to provide financial assistance National Foreign Affairs Training Center as the for brownfields revitalization, to enhance State re- George P. Shultz National Foreign Affairs Training sponse programs, clearing the measure for the Presi- Center, and the bill was then passed, clearing the dent. Pages S14063–64 measure for the President. Pages S14059–60 Family Sponsor Immigration Act: Senate passed Security Assistance Act: Senate passed S. 1803, to H.R. 1892, to amend the Immigration and Nation- authorize appropriations under the Arms Export ality Act to provide for the acceptance of an affidavit Control Act and the Foreign Assistance Act of 1961 of support from another eligible sponsor if the origi- for security assistance for fiscal years 2002 and 2003, nal sponsor has died and the Attorney General has after agreeing to the following amendment proposed determined for humanitarian reasons that the origi- nal sponsor’s classification petition should not be re- thereto: Pages S14060–61 Reid (for Biden/Helms) Amendment No. 2695, to voked, after agreeing to a committee amendment. make certain managers’ amendments to the bill. Pages S14064–65 Pages S14060–61 Nurse Corps Recruitment: Senate passed S. 1864, to amend the Public Health Service Act to establish Water and Wastewater Facilities: Senate passed a Nurse Corps and recruitment and retention strate- S. 1608, to establish a program to provide grants to gies to address the nursing shortage. Page S14065 drinking water and wastewater facilities to meet im- mediate security needs, after agreeing to a committee Gen. Shelton Congressional Gold Medal Act: amendment in the nature of a substitute. Senate passed H.R. 2751, to authorize the President Pages S14061–62 to award a gold medal on behalf of the Congress to General Henry H. Shelton and to provide for the Authorizing Emergency Funds: Senate passed S. production of bronze duplicates of such medal for 1637, to waive certain limitations in the case of use sale to the public, clearing the measure for the Presi- of the emergency fund authorized by section 125 of dent. Page S14065 title 23, United States Code, to pay the costs of projects in response to the attack on the World Department of Justice Authorization: Senate Trade Center in New York City that occurred on passed H.R. 2215, to authorize appropriations for September 11, 2001, after agreeing to the following the Department of Justice for fiscal year 2002, after agreeing to a committee amendment in the nature amendment proposed thereto: Page S14062 Reid (for Clinton) Amendment No. 2696, to of a substitute, and the following amendment pro- posed thereto: Pages S14065–75 make certain modifications to the bill. Page S14062 Reid (for Leahy/Hatch) Amendment No. 2697, to Federal Judiciary Protection Act: Senate passed provide for the establishment of additional Boys and S. 1099, to increase the criminal penalties for as- Girls Clubs of America. Page S14075 saulting or threatening Federal judges, their family Senate insisted on its amendment, requested a members, and other public servants. Pages S14062–63 conference with the House thereon, and the Chair Authorizing Nonimmigrant Spouses: Senate was authorized to appoint the following conferees on passed H.R. 2278, to provide for work authorization the part of the Senate: Senators Leahy, Kennedy, and for nonimmigrant spouses of intracompany trans- Hatch. Page S14075 ferees, and to reduce the period of time during Department of Veterans Affairs Health Care which certain intracompany transferees have to be Programs Enhancement Act: Senate passed H.R. continuously employed before applying for admission 3447, to amend title 38, United States Code, to en- to the United States, clearing the measure for the hance the authority of the Secretary of Veterans Af- President. Page S14063 fairs to recruit and retain qualified nurses for the

VerDate 11-MAY-2000 00:49 Dec 23, 2001 Jkt 099060 PO 00000 Frm 00003 Fmt 0627 Sfmt 0627 E:\CR\FM\D20DE1.REC pfrm01 PsN: D20DE1 December 20, 2001 CONGRESSIONAL RECORD — DAILY DIGEST D1283 Veterans Health Administration, to provide an addi- Victims of Terrorism Relief Act: Senate concurred tional basis for establishing the inability of veterans in the amendment of the House to Senate amend- to defray expenses of necessary medical care, to en- ment to H.R. 2884, to amend the Internal Revenue hance certain health care programs of the Depart- Code of 1986 to provide tax relief for victims of the ment of Veterans Affairs, clearing the measure for terrorist attacks against the United States, with a the President. Pages S14075–80 further amendment as follows: Pages S13856–64 Private Relief: Committee on the Judiciary was Daschle (to the amendment of the House to the discharged from further consideration of S. 1834, for amendment of the Senate to the text of the bill) the relief of retired Sergeant First Class James D. Be- Amendment No. 2689, in the nature of a substitute. noit and Wan Sook Benoit, and the bill was then Page S13864 passed. Pages S14080–81 Department of Defense Appropriations Con- Technical Correction: Senate passed S. 1888, to ference Report: By 94 yeas to 2 nays (Vote No. amend title 18 of the United States Code to correct 380), Senate agreed to the conference report on H.R. a technical error in the codification of title 36 of the 3338, making appropriations for the Department of Defense for the fiscal year ending September 30, United States Code. Page S14081 2002, clearing the measure for the President. Gerald B. H. Solomon Saratoga National Ceme- Pages S13832–56, S13864–65, S13865–68, S13869–71 tery: Committee on Veterans’ Affairs was discharged Foreign Operations Appropriations Conference from further consideration of H.R. 3392, to name Report: Senate agreed to the conference report on the national cemetery in Saratoga, New York, as the H.R. 2506, making appropriations for foreign oper- Gerald B.H. Solomon Saratoga National Cemetery, ations, export financing, and related programs for and the bill was then passed, clearing the measure the fiscal year ending September 30, 2002, after con- for the President. Page S14081 sultation between the Majority and Republican Lead- Korean War Veterans Association Federal Char- ers, clearing the measure for the President. ter: Committee on the Judiciary was discharged from Pages S13894–S13902 further consideration of S. 392, to grant a Federal Nomination Referral—Agreement: A unanimous- Charter to Korean War Veterans Association, Incor- consent agreement was reached providing that the porated, and the bill was then passed. nomination of Joseph E. Schmitz to be Inspector Pages S14081–82 General, Department of Defense, which was ordered Immigration Deadline Extension: Committee on reported by the Committee on Armed Services, be the Judiciary was discharged from further consider- referred to the Committee on Governmental Affairs ation of S. 1400, to amend the Illegal Immigration for not to exceed 20 calendar days, beginning on Reform and Immigrant Responsibility Act of 1996 January 23, 2002, and that if the nomination is not to extend the deadline for aliens to present a border reported after that 20-day period, the nomination be crossing card that contains a biometric identifier automatically discharged and placed on the Execu- matching the appropriate biometric characteristic of tive Calendar. the alien, and the bill was then passed. Page S14082 Nominations—Agreement: A unanimous-consent Year of the Rose: Senate agreed to H. Con. Res. agreement was reached providing that all nomina- 292, supporting the goals of the Year of the Rose. tions received by the Senate during the 107th Con- Page S14082 gress, First Session, remain in status quo, notwith- Measure Indefinitely Postponed: standing the adjournment of the Senate, and the pro- visions of Rule XXXI, Paragraph 6, of the Standing Transportation Appropriations Act: S. 1178, Rules of the Senate, with the following exceptions: making appropriations for the Department of Trans- Otto Reich to be Assistant Secretary of State, and portation and related agencies for the fiscal year end- Col. David R. Leffarge to be Brigadier General. ing September 30, 2002. Pages S14049–50 Page S14049 Labor/HHS/Education Appropriations Con- Sine Die Adjournment Appointments: A unani- ference Report: By 90 yeas to 7 nays (Vote No. mous-consent agreement was reached providing that 378), Senate agreed to the conference report on H.R. notwithstanding the sine die adjournment of the 3061, making appropriations for the Departments of Senate, the President of the Senate, the President of Labor, Health and Human Services, and Education, the Senate pro tempore, and the majority and minor- and related agencies for the fiscal year ending Sep- ity leaders be authorized to make appointments to tember 30, 2002, clearing the measure for the Presi- commissions, committees, boards, conferences, or dent. Pages S13773–S13830 interparliamentary conferences authorized by law, by

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concurrent action of the two Houses, or by order of Linda Morrison Combs, of North Carolina, to be the Senate. Page S14049 Chief Financial Officer, Environmental Protection Nominations Confirmed: Senate confirmed the fol- Agency. lowing nominations: Eve Slater, of New Jersey, to be an Assistant Sec- Eduardo Aguirre, Jr., of Texas, to be First Vice retary of Health and Human Services. President of the Export-Import Bank of the United William Leidinger, of Virginia, to be Assistant States for a term expiring January 20, 2005. Secretary for Management, Department of Education. J. Joseph Grandmaison, of New Hampshire, to be Dan Gregory Blair, of the District of Columbia, a Member of the Board of Directors of the Export- to be Deputy Director of the Office of Personnel Import Bank of the United States for a term expir- Management. ing January 20, 2005. Matthew D. Orwig, of Texas, to be United States Michael Hammond, of Texas, to be Chairperson of Attorney for the Eastern District of Texas for the the National Endowment for the Arts for a term of term of four years. four years. (Prior to this action, Committee on Jane J. Boyle, of Texas, to be United States Attor- Health, Education, Labor and Pensions was dis- ney for the Northern District of Texas for the term charged from further consideration.) of four years. James E. Newsome, of Mississippi, to be a Com- James K. Vines, of Tennessee, to be United States missioner of the Commodity Futures Trading Com- Attorney for the Middle District of Tennessee for the mission for the term expiring June 19, 2006. (Prior term of four years. to this action, Committee on Agriculture, Nutrition, Johnny Lewis Hughes, of Maryland, to be United and Forestry was discharged from further consider- States Marshal for the District of Maryland for the ation.) term of four years. James E. Newsome, of Mississippi, to be Chair- man of the Commodity Futures Trading Commis- Randy Merlin Johnson, of Alaska, to be United sion. (Prior to this action, Committee on Agri- States Marshal for the District of Alaska for the term culture, Nutrition, and Forestry was discharged from of four years. further consideration.) Larry Wade Wagster, of Mississippi, to be United Claude M. Bolton, Jr., of Florida, to be an Assist- States Marshal for the Northern District of Mis- ant Secretary of the Army. sissippi for the term of four years. Kathleen Burton Clarke, of Utah, to be Director Routine lists in the Air Force, Foreign Service. of the Bureau of Land Management. Pages S14083–84 C. Ashley Royal, of Georgia, to be United States Messages From the House: Pages S13940–41 District Judge for the Middle District of Georgia. Measures Referred: Page S13941 Harry E. Cummins III, of Arkansas, to be United States Attorney for the Eastern District of Arkansas Measures Placed on Calendar: Page S13942 for the term of four years. Measures Read First Time: Page S13942 Christopher James Christie, of New Jersey, to be United States Attorney for the District of New Jer- Enrolled Bills Presented: Page S13942 sey for the term of four years. Executive Communications: Page S13942 Sean O’Keefe, of New York, to be Administrator Executive Reports of Committees: Page S13943 of the National Aeronautics and Space Administra- tion. Additional Cosponsors: Pages S13944–45 34 Army nominations in the rank of general. Statements on Introduced Bills/Resolutions: Pages S13830, S14047–49 Pages S13945–82 Nominations Received: Senate received the fol- Additional Statements: Page S13938–40 lowing nominations: Amendments Submitted: Pages S13982–S14029 Nancy Southard Bryson, of the District of Colum- bia, to be General Counsel of the Department of Ag- Authority for Committees to Meet: Page S14029 riculture. Privilege of the Floor: Page S14029 Paul S. Atkins, of Virginia, to be a Member of the Record Votes: Three record votes were taken today. Securities and Exchange Commission for the remain- der of the term expiring June 5, 2003. (Total—380) Page S13830, S13830–31, S13864 Cynthia A. Glassman, of Virginia, to be a Mem- Adjournment: Senate met at 9:30 a.m., and, in ac- ber of the Securities and Exchange Commission for cordance with the provisions of H. Con. Res. 295, a term expiring June 5, 2006. adjourned sine die at 10:06 p.m.

VerDate 11-MAY-2000 00:49 Dec 23, 2001 Jkt 099060 PO 00000 Frm 00005 Fmt 0627 Sfmt 0627 E:\CR\FM\D20DE1.REC pfrm01 PsN: D20DE1 December 20, 2001 CONGRESSIONAL RECORD — DAILY DIGEST D1285 Committee Meetings NOMINATION Committee on Commerce, Science, and Transportation: (Committees not listed did not meet) Committee concluded hearings on the nomination of John Magaw, of Maryland, to be Under Secretary of NOMINATIONS Transportation for Security, after the nominee, who Committee on Armed Services: Committee ordered favor- was introduced by Secretary of Transportation Nor- ably reported the nomination of Joseph E. Schmitz, man Mineta, testified and answered questions in of Maryland, to be Inspector General, Department of their own behalf. Defense, and 34 military nominations in the Army Reserve. h House of Representatives Agreed to H. Res. 322, the rule that provided for Chamber Action consideration of the joint resolution by voice vote. Measures Introduced: 58 public bills, H.R. Pages H10916–17 3552–3609; 1 private bill, H.R. 3610; and 10 reso- lutions, H.J. Res. 80–81; H. Con. Res. 295–298, Suspensions: The House agreed to suspend the rules and H. Res. 326–329, were introduced. and pass the following measures that were debated Pages H10963–66 on the legislative day of December 19. Earlier agreed to vacate the ordering of the yeas and nays on H.R. Reports Filed: No Reports were filed today. 3423, H.R. 2561, and H.R. 1432 to the end that Guest Chaplain: The prayer was offered by Rev. the Chair put the question on each of those measures Msgr. Peter J. Vaghi, Pastor, St. Patrick’s Catholic de novo. Page H10935 Church of Washington, D.C. Page H10913 Honoring Dr. James Harvey Early in the Wil- DOD Appropriations Conference Report: The liamsburg, Kentucky Post Office Building: S. House agreed to the conference report on H.R. 1714, to provide for the installation of a plaque to 3338, making appropriations for the Department of honor Dr. James Harvey Early in the Williamsburg, Defense for the fiscal year ending September 30, Kentucky Post Office Building—clearing the meas- 2002 by a yea-and-nay vote of 408 yeas to 6 nays, ure for the President; Page H10935 Roll No. 510. Pages H10917–34 Agreed to H. Res. 324, the rule that waived Major Lyn McIntosh Post Office Building, Val- points of order against the conference report by voice dosta, Georgia: H.R. 1432, to designate the facility of the United States Postal Service located at 3698 vote. Pages H10914–16 Inner Perimeter Road in Valdosta, Georgia, as the Making Further Continuing Appropriations: The ‘‘Major Lyn McIntosh Post Office Building;’’ House passed H.J. Res. 79, making further con- Page H10935 tinuing appropriations for the fiscal year 2002. Page H10934 Office of Government Ethics Authorization: S. Agreed to H. Res. 323, the rule that provided for 1202, to amend the Ethics in Government Act of consideration of the joint resolution by voice vote. 1978 (5 U.S.C. App.) to extend the authorization of Page H10916 appropriations for the Office of Government Ethics through fiscal year 2006—clearing the measure for Sine Die Adjournment of the First Session of the One Hundred Seventh Congress: The House the President; Page H10935 agreed to H. Con. Res. 295, providing for the sine Commending the Crew of the USS Enterprise die adjournment of the first session of the One Hun- Battle Group and Armed Forces Prosecuting the dred Seventh Congress. Pages H10934–35 War: H. Con. Res. 279, recognizing the service of Convening of the Second Session of the One the crew members of the USS Enterprise Battle Hundred Seventh Congress: The House passed Group during its extended deployment for the war H.J. Res. 80, appointing the day for the convening effort in Afghanistan. Agreed to amend the title so of the second session of the One Hundred Seventh as to read: A concurrent resolution recognizing the Congress. Page H10935 excellent service of members of the Armed Forces

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Res. 292, supporting Monitoring Iraqi Weapons Development: H.J. the goals of the Year of the Rose; and Page H10937 Res. 75, amended, regarding the monitoring of Higher Education Relief Opportunities: S. 1793, weapons development in Iraq, as required by United to provide the Secretary of Education with specific Nations Security Council Resolution 687 (April 3, waiver authority to respond to conditions in the na- 1991) (agreed to by a yea-and-nay vote of 392 yeas tional emergency declared by the President on Sep- to 12 nays with 7 voting ‘‘present,’’ Roll No. 511). tember 14, 2001. Page H10938 Agreed to amend the title so as to read: A joint res- Suspension Failed—Higher Education Act olution regarding inspection and monitoring to pre- Amendments: The House failed to suspend the vent the development of weapons of mass destruction rules and S. 1762, to amend the Higher Education in Iraq; Page H10936 Act of 1965 to establish fixed interest rates for stu- Redacting Financial Disclosure Statements: dent and parent borrowers, to extend current law Agreeing to the Senate amendments to H.R. 2336, with respect to special allowances for lenders by a re- to make permanent the authority to redact financial corded vote of 257 ayes to 148 noes (2/3 required disclosure statements of judicial employees and judi- to pass), Roll No. 512. Pages H10937–38 cial officers (The Senate amended the title so as to Committee to Notify the President: The House read: An Act to extend for 4 years, through Decem- agreed to H. Res. 327, providing for a committee of ber 31, 2005, the authority to redact financial dis- two Members to be appointed by the House to in- closure statements to judicial employees and judicial form the President that the two houses have com- officers); Page H10936 pleted their business of the session and are ready to Eligibility of Reservists and their Dependents adjourn, unless the President has some other com- for Burial in Arlington National Cemetery: H.R. munication to make to them. Subsequently the 3423, amended, to amend title 38, United States Speaker appointed Majority Leader Armey and Mi- Code, to enact into law eligibility of certain veterans nority Leader Gephardt to the Committee. and their dependents for burial in Arlington Na- Page H10938 tional Cemetery; Agreed to amend the title so as to Resignations—Appointments: Agreed that until read: A bill to amend title 38, United States Code, the day the House convenes for the Second Session to enact into law eligibility of certain Reservists and of the 107th Congress, and notwithstanding any ad- their dependents for burial in Arlington National journment of the House, the Speaker, Majority Lead- Cemetery; Pages H10936–37 er and Minority Leader may accept resignations and Living American Hero Appreciation Act: H.R. make appointments authorized by law or by the 2561, amended, to increase the rate of special pen- House. Page H10938 sion for recipients of the medal of honor, to author- Permanent Select Committee on Intelligence Ap- ize those recipients to be furnished an additional pointment: Agreed that until the day the House medal for display purposes, and to increase the convenes for the Second Session of the 107th Con- criminal penalties associated with misuse or fraud re- gress the Speaker, pursuant to clause 11 of Rule 10 lating to the medal of honor. Agreed to amend the and clause 11 of rule 1, and notwithstanding the re- title so as to read: A bill to amend title 38, United quirement of clause 11(a)(1) of Rule 10, may appoint States Code, to increase the rate of special pension a member to the Permanent Select Committee on for recipients of the medal of Honor and to make Intelligence to fill the existing vacancy thereon. that special pension effective from the date of the act Page H10938 for which the recipient is awarded the Medal of Extension of Remarks: Agreed that Members may honor and to amend title 18, United States Code, to have until publication of the last edition of the Con- increase the criminal penalties associated with misuse gressional Record authorized for the First Session by or fraud relating to the Medal of Honor; Page H10937 the Joint Committee on Printing to revise and ex- Qualified Organ Procurement Organizations: tend their remarks and to include brief, related ex- H.R. 3504, to amend the Public Health Service Act traneous material on any matter occurring before the with respect to qualified organ procurement organi- adjournment of the First Session Sine Die. zations; Page H10937 Page H10938

VerDate 11-MAY-2000 00:49 Dec 23, 2001 Jkt 099060 PO 00000 Frm 00007 Fmt 0627 Sfmt 0627 E:\CR\FM\D20DE1.REC pfrm01 PsN: D20DE1 December 20, 2001 CONGRESSIONAL RECORD — DAILY DIGEST D1287 Resolutions Reported by the Committee on p.m. on Friday, December 21, 2001, unless it sooner Rules: Agreed that the following resolutions be laid has received a message from the Senate transmitting on the table: H. Res. 291, R. Res. 317, H. Res. its passage without amendment of H.J. Res. 79, in 318, and H. Res. 321. Page H10938 which case the House shall stand adjourned for the Speaker Pro Tempore: Read a letter from the first session of the One Hundred Seventh Congress Speaker wherein he appointed Representative Tom sine die pursuant to H. Con. Res. 295. Page H10960 Davis of Virginia or if not available to perform this duty, Representative Wayne Gilchrest to act as Committee Meetings Speaker pro tempore to sign enrolled bills and joint No Committee meetings were held resolutions until the day the House convenes for the f second session of the 107th Congress. Page H10938 Recess: The House recessed at 2:19 p.m. and recon- NEW PUBLIC LAWS vened at 5:02 p.m. Page H10953 (For last listing of Public Laws, see DAILY DIGEST of December 17, 2001, p. D1263) Victims of Terrorism Relief Act: The House agreed to the Senate amendment to the House H.R. 717, to amend the Public Health Service amendment to the Senate amendments to H.R. Act to provide for research and services with respect 2884, to amend the Internal Revenue Code of 1986 to Duchenne muscular dystrophy. Signed on Decem- to provide tax relief for victims of the terrorist at- ber 18, 2001. (Public Law 107–84) tacks against the United States on September 11, H.R. 1766, to designate the facility of the United 2001—clearing the measure for the President. States Postal Service located at 4270 John Marr Drive in Annandale, Virginia, as the ‘‘Stan Parris Pages H10954–59 Post Office Building’’. Signed on December 18, Adjournment Sine Die Pending Receipt of Sen- 2001. (Public Law 107–85) ate Message: Agreed that when the House adjourns H.R. 2261, to designate the facility of the United today, it adjourn to meet at 4 p.m. on Friday, De- States Postal Service located at 2853 Candler Road cember 21, 2001, unless it sooner has received a in Decatur, Georgia, as the ‘‘Earl T. Shinhoster Post message from the Senate transmitting its passage Office’’. Signed on December 18, 2001. (Public Law without amendment of House Joint Resolution 79, 107–86) in which case the House shall stand adjourned sine H.R. 2299, making appropriations for the Depart- die pursuant to H. Con. Res. 295. Pages H10953–54 ment of Transportation and related agencies for the Senate Messages: Messages received from the Senate fiscal year ending September 30, 2002. Signed on appear on pages H10953. December 18, 2001. (Public Law 107–87) H.R. 2454, to redesignate the facility of the Quorum Calls—Votes: Two yea-and-nay votes and United States Postal Service located at 5472 one recorded vote developed during the proceedings Crenshaw Boulevard in Los Angeles, California, as of the House today and appear on pages the ‘‘Congressman Julian C. Dixon Post Office H10933–34, H10936, and H10937–38. There were Building’’. Signed on December 18, 2001. (Public no quorum calls. Law 107–88) Adjournment: The House met at 10 a.m. and at H.J. Res. 71, amending title 36, United States 5:08 p.m. pursuant to the previous order of the Code, to designate September 11 as Patriot Day. House of today, the House stands adjourned until 4 Signed on December 18, 2001. (Public Law 107–89)

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Next Meeting of the SENATE Next Meeting of the HOUSE OF REPRESENTATIVES 12 noon, Wednesday, January 23, 2002 12 noon, Wednesday, January 23, 2002

Senate Chamber House Chamber Program for Wednesday: Senate will convene for the Program for Wednesday: To be announced. second session of the 107th Congress and conduct a live quorum. (Senate will recess from 12:30 p.m. until 2:15 p.m., for their respective party conferences.) (Senate photograph will occur at 2:30 p.m.)

Extensions of Remarks for today will be printed in Book II

E PL UR UM IB N U U S The public proceedings of each House of Congress, as reported by the Official Reporters thereof, are printed pursuant to directions Congressional Record of the Joint Committee on Printing as authorized by appropriate provisions of Title 44, United States Code, and published for each day that one or both Houses are in session, excepting very infrequent instances when two or more unusually small consecutive issues are printed at one time. ¶ Public access to the Congressional Record is available online through GPO Access, a service of the Government Printing Office, free of charge to the user. The online database is updated each day the Congressional Record is published. The database includes both text and graphics from the beginning of the 103d Congress, 2d session (January 1994) forward. It is available through GPO Access at www.gpo.gov/gpoaccess. Customers can also access this information with WAIS client software, via telnet at swais.access.gpo.gov, or dial-in using communications software and a modem at (202) 512–1661. Questions or comments regarding this database or GPO Access can be directed to the GPO Access User Support Team at: E-Mail: [email protected]; Phone 1–888–293–6498 (toll-free), 202–512–1530 (D.C. area); Fax: 202–512–1262. The Team’s hours of availability are Monday through Friday, 7:00 a.m. to 5:30 p.m., Eastern Standard Time, except Federal holidays. ¶ The Congressional Record paper and 24x microfiche will be furnished by mail to subscribers, free of postage, at the following prices: paper edition, $197.00 for six months, $393.00 per year, or purchased for $4.00 per issue, payable in advance; microfiche edition, $141.00 per year, or purchased for $1.50 per issue payable in advance. The semimonthly Congressional Record Index may be purchased for the same per issue prices. To place an order for any of these products, visit the U.S. Government Online Bookstore at: bookstore.gpo.gov. Mail orders to: Superintendent of Documents, P.O. Box 371954, Pittsburgh, PA 15250–7954, or phone orders to (202) 512–1800, or fax to (202) 512–2250. Remit check or money order, made payable to the Superintendent of Documents, or use VISA, MasterCard, Discover, or GPO Deposit Account. ¶ Following each session of Congress, the daily Congressional Record is revised, printed, permanently bound and sold by the Superintendent of Documents in individual parts or by sets. ¶ With the exception of copyrighted articles, there are no restrictions on the republication of material from the Congressional Record.

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